New-York tribune., 1903-06-10
BIG THEFT IN CAPITAL.
OYER 100000 Is MISSING.
District of Columbia auditors CLerh
accused of EmbezsIement.

Washington. June o-James NJ. Watson, jr.. a
clerk in the Office OF the Auditor for the Dis
trict OF Columbia, and the son-in-law of a
wealthy retired railroad contractor, ar
rested to-day on a charge Of enbezzlement of
government funds The amount is estimated at
from 100000 10 $4,000. The warrant makes
the specific charge OF enbezzlement Of SS.o09,
which represents only portion of the alleged
peculations. Watson was not bonded. and in
g Sc he or his relatives. several of whom are
said 10 be wealthy. fail TO make good the al
legged losses. Auditor J. T. Petty viii be held
responsible for the amount The Auditors bond
IS for 10000. The money alleged to have heen
smbezzIed was part Of the funds deposited in
the Office Of the Auditor by property owners who
are willing 10 pay half or all costs Of improve
rnents abutting on their property, such as paw
ing sidewalks alleys and streets.
This embraces deposits by railway companies.
electric light companies. telephone companies
for crossing sidewalks, for sewers and water
mains and is entirely separate from the other
accounts. This account is not subject TO review
by The Treasury Department. but it is checked
by The clerk in charge OF the corresponding &C
count in the District Department. and he re-
ported it correct as late as February, 1905 the
denositors. it is said, have the right 10 recover
from the District through suit.
NJ the Board of Commissioners of the District
Of Columbia Auditor Petty has complete
charge of The assessment and permit funo, De
posting the money in a bank TO his own credit
Mr. Watson II is alleged. has been intrusted
with making the deposits. and has returned the
passbook in apparently proper condition in each
instance. He has been an eTnploye Of the Dis
trict for four years. and the alleged defalcations
are supposed TO have been carried on throughout
most Of this period.
The discovery Of the alleged shortage was
made several days ago. but was kept secret by
The Auditor. in the hope Of securing restitution
The Commissioners of the District were made
ACQUAINTED with the condition OF affairs this
morning and at q special session demanded from
Auditor Petty e formal report on the matter
and explanation OF the system by Whlch Sucn
2 large sum Of money could be distracted with
out earlier detection The system IS SAID TO
have been inquired into ten or twelve years ago,
hut no changes IN methods resulted Auditor
Petty said to-day that the accounts had been
manipulated in such a clever manner that he
was not certain OF the exact situation untll To-
day
Watson was joint publisher Of new bulletin
issued in this city. In addition TO running the
per he owned q barber shop, Whlch ne mas
Feen irving TO sell recently. He the pro
rnoter Of a patent medicine concern and the
treasurer of what Is known the District Co
operative Association, which takes in money
from employees deposit and lends II out again
Many Of the office holders at the District
Building are QepOSlIFTS lle dSScS4otioi4s NN414
ing the money over entirely to Watson and get
ting his personal receipt in tiny books reseIn-
bling barkbooks. Several months ago Mayor
Sylvester the Chief of Police, investigated Wat
son record. and II is stated he found that w at
son was sent 10 the Reform School, while a
minor. Oh e charge Of forgery
Wstsor,s hail was fixed at $4,000 which, It
was stated. will be furnished tomorrow by
several bonding companies In long state
1nent Watson attributed the alleged shortage TO
careless bookleepine and denied that he had
been guilty Of any enbezzlement-