The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-06-10
GOT A Big SLICE
WATSON CUT DEEP INTO THE
AUDITORS FUNDS.
SHORT MORE THAN 100000.
HE WORKED AN EASY SCHEME IN
WASHINGTON.

watson Was Clerk in the Office
of the Auditor for the District.
Made Deposits for the Auditor.
Deposit Book Showed Up Correct
Nv, but the Money Was Not in
Bnnk-WatsOn Had Many Irons in
the Fire-AuditOr May Have to
Make Good the Shortages.
Washington. June 9.-James M. Wat
son, Jr., a clerk in the office of the
auditor for the District of Columbia
and the son-in-law of a wealthy rail-
pad contractor, was arrested to-day
on q charge of embezzlement of gov
ernrnent funds. The amount is esti-
mated at from 100000 to $4,000.
The warrant makes the specific
charge of embezzlement of $1,000, which
represents only a portion of the al
legged peculations.
Watson was not bonded, and in case
he or his relatives, several of whom
are said to be wealthy, fail to make
good the alleged losses, Auditor ]. T.
Petty will be held responsible for the
amount. The auditors bond is for $780,
900.
The money alleged to have been EN-
bezzled was part of the funds deposit
ed in the office of the auditor by prop
Grey owners, who are willing to pay
half or all costs of improvements on
their property, such as having side
walks in the alleys and streets. This
embraces deposits by railroad COM
panies, electric light companies, tele-
phone companies, for crossing side
walks. for sewers and water mains,
and is entirely separate from the other
accounts.
More Than a Year to Work 1T.
This account is not subject to re-
view by the Treasury Department, but
it is checked by the clerk in the
charge of the corresponding account
in the District engineer department,
and he reported it correct as late as
February, 1902.
The depositors, it is said, have the
right 10 recover from the District
through suit.
The auditors office is under the
supervision of the Board of Commits
sioners of the District of Columbia.
Auditor Petty has complete charge of
the assessment and permit fund, de-
posting the money in a bank TO his
own credit. Watson, it is alleged, has
been entrusted with making the de-
posits and has returned the pass book
in apparently proper condition in each
Instance. He has been an employe of
the District for four years, and the al
legged defalcations are supposed to
have occurred throughout most of this
period.
We're CIeverIy Manipulated.
Auditor Petty said to-day that the
accounts had been manipulated in such
a clever manner that he was not GER
tain of the exact situation until to-
day Watson was a joint publisher of
a news bulletin issued in this city. In
addition to running the paper, he owned
Il a barber shop, which he has been try
4 ing to sell recently.
He was the promoter of patent
medicine concern, and the treasurer OF
what is known as the District Coop
erative Association, which takes IN
money from employees on deposit and
lends it out again. Many of the
oficeholders at the District building are
depositors in the association, turning
the money over entirely to Watson
and getting his personal receipt in tiny
books resem bling bank books
Several months ago Maj. Sylvester,
the chief of police here, investigated
Watsons record, and it is stated he
found that Watson was sent to the
reform school while in his minority on
a charge of forgery.
Says Careless Bookkeeping.
4 Watson's bail was fixed at s25.OOO
which, it was stated, will be furnished
tomorrow by several bonding COM
pnies. with which arrangements to
that effect will be made. The arrest
ed man spent the night in the police
station. In long statement which ne
made to a reporter, Watson attributed
the alleged shortage TO careless BOOK
keeping and denied that he had peeh
guilty of any embezzlement.