Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-16
OFFICIALS OBJECT
SUGGESTIONS REGARDING DIS
PosAL OF DISTRICT FUNDS.
Treasury Will Take Such Money Only
as Comes by Law-Watson
Without Bail.

ment TODAY had an extended conference
with the officials of the United States treas
ury with reference to the proposed handling
of all moneys heretofore deposited in pri-
yate banks to the account of the auditor
through the Treasury Department. The
Commissioners several days ago addressed
a letter to Mr. Leslie NJ. Shaw, the Secre-
tary of the Treasury, asking him II the
department would not consent to handle the
deposit and whole cost funds of the Dis
trict. The deposit fund is the one created
by the plumbers and railroad companies
who place in the hands of the District a
specified sum to cover the cost of repairs
to street surfaces after the completion OF
underground work in which they are inter
eSted The whole cost fund Is the fund de-
posted by property owners who desire i'm
provements and wish to pay the entire
cost
Mr.. Petty reported to Commissioner West
this afternoon that the treasury officials
are unwilling to handle this money. He
said they declared they were authorized
only to handle such moneys as may come
into their hands through process OF law
The whole cost fund and the deposit fund
they hold are purely District transactions
and have nothing to do with the treasury
accounts. The treasury now handles the
half-and-half assessment fund for the con-
struction of sidewalks and other improve
ments where the District and United
States pay one-half and the property owner
the other half. Mr.. Petty says letter
to the Commissioners was being drafted
for the Secretary of the Treasury to sign,
in which the local authorities would be
informed as to the attitude of the national
authorities
Mr.. Vests Opinion.
Commissioner West believes the funds in
question can be properly handled in the
District offices if proper precautions are
taken. AS they concern the District only
the Commissioners can make regulations
governing their care. and 1t is assured
that strict rules will be forthcoming In
the event of negotiations with the Treas
ury Department being of no avail.
The Commissioners are inQutring into the
status of the bond given by Auditor Petty
in 1888 in the sum of $4,000. There was no
provision as to the renewal of the instru-
ment. and it Is believed to be perfectly
good.
The only question is said to be as to
whether or not the bond covered the dis
bursement of funds. 1t reads "for the faith
full performance of the duties of said Of
f1ce." The system through which the de-
falcation was permitted and the delay OF
the auditor in reporting the shortage may
be held to have been neglect of duty, and
then suit could be brought on the bond IL
deemed necessary in the end, even though
it should prove to be purely an administra-
tive instrument.
Watson's Prospects of Release.
With the passage of time the chances of
James M. A. Watson being released from
custody on ball grow apparently simmer,
although Mr. John H. Bryant. who has re-
turned here from New York and Atlantic
City and saw some of the business asso-
ciates of his son-in-law this afternoon, ID
reported to have said that Watson will
certainly be released on bail late this after
noon" Attorney Stuart Mcnamara Of
counsel for the prisoner was engaged
in court the greater portion Of to-
day in connection with the trial of
a civil case. and therefore he was pre-
vented from taking any active steps in the
direction of providing surety for Watson.
There is reason to believe that counsel
have communicated with Mr.. Bryant. Wat
sons father-in-law. and that the latter
made 1t plain that he will not indemni-
fy bonding company nor render any
endeavors to have his son-in-law here for
trial, in the event the latter should now be
released on BAIL The surety company with
which dealings have been had, it Is under
stood, demands some sort Of an indemnity
before it will qualify.
Writs of garnishment have been served
on Watson's attorneys, the employees of the
latter and large number of the defend
ants friends. by which they are required
to disclose whether they have in their pos
session any property money that was
formerly in the possession Of the prisoner.
1t was stated today at the city hall that
Mr.. Frank T. Rawlings. foreman of the
grand jury now sitting, which will probably
Watson. was the foreman Of the grand jury
that indicted Watson about thirteen years
ago. to which indictment he pleaded guilty
and was sentenced to the reform school.