Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-10

the total amount of money ailegoi to have
been embezzled had been reported to them
by the auditor as exceeding S65. grs3.zIEa at
son spent the morning at the Police Court
endeavoring to make arrangements for Civ
ing the bail demanded.
The developments in the case today bear
out the facts as stated exclusively in The
Star yesterday afternoon. At the time OF
this first publication Watson had not been
apprehended. He was found later in the
evening at his home and was escorted to
the tenth precinct police station, where he
spent the night
Auditor J. 7. Petty, in whose Office The
defalcation occurred. spent most of last
night and all today endeavoring to secure
all the details of the shortage In order 10
make definite report to the CommiS-
sioners. Mr.. Pettys first act this morning
was to call at the Treasury Department
and request that two expert accountants
be sent to his office at the District building
to go over Watson's books and papers. Mr..
Petty made his request OF MI. Timme. the
auditor for the State and other depart
ments, who passes upon all the District
accounts. Mr. Timme sent Mr.. r y. Hods-
son, one of the experts of his office, to the
District building, and the latter has been
engaged upon his very difficult task today
The books are in awful condition IL
was this bad state of the accounts kept oy
Watson that first led his superiors to be-
lieve that he had been careless rather than
criminal, and they proceeded on that basis
until discoveries of actual defalcation were
made.
Investigating Lapham.
One of. the phases of the case which the
,,,,gc firaf ing tod In
the connection of W. R. Lapham, in
spector in the engineer department, with
Watson, and with the various enterprises
launched and run by him. Lapham is tbs
official who checked up the accounts kept
by Watson with regard to the moneys de-
posted by plumbers and others to cover
damage to streets in making cuts In the
pavements. Colonel Biddle is handling this
end of the investigation. So far 1t is said
nothing connecting Lapham with the de-
falcations has been found. The checking
was merely for the purpose of seeing IL
the charges made in the engineer depart
ment were properly charged against the
deposit on the auditors accounts. The
process was very simple and was carried
through correctly as far as now known
The only significance in Lapham's con-
nection with Watson's accounts is his close
business relationship with the latter In
the last directory Watson & Lapham" ap-
pear as the proprietors of the little daily
publication known as THE News 1t il
stated that Lapham was also connected
with Watson's barber shop and his patent
medicine factory. 1t is known that he was
identified with the District Cooperative As
sociation, organized by Watson, and 1t in
said that the two were partners at one time
in both a brokers' Office and race tip con-
Germ Lapham was formerly an employe
of the stationery division of the Interior
Department, and it is understood that his
record while there will be inquired into.
Assumes Responsibility.
Auditor Petty has assumed entire re-
sponsibility for the defalcation and declares
the Commissioners are in no wise liable
Mr. Petty stated that if Watson's family
fails to make restitution, he will appeal to
of himself and his bondsmen.
To the extent of Mr.. Petty's bond OF
$40 coo II is believed that there is no ques-
ton as to recovery. The bond of the aud
itor was prescribed and the amount fixed
by an act of the legislative assembly, ap-
proved August %, 1871, and still remaining
In force This act prescribed the duties OF
the various officers of the District govern
ment The auditor was required to give
bond to the District of Columbia in the
sum of $4,000. while the deputy auditor
was required to give a bond Of S2.000-
Mr. Petty's last bond was filed and 80