Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-12-07
and were transferred to Tho soldiers roll;
and were transferred to- the pay list
Defalcatdon In Auditors Office.

Oefalca0Ou IN Au0atOTS Omcos
A serious defalcation in the office Of the
auditor, extending over q period Of from
three and half to four years, was discov-
cred in the month Of June. 1903 One OF
tho employees in the auditors office, James
NJ. A. Watson. had, during the period
named, appropriated to his own use checks
amounting to S73,OS2.27. The arrest Of the
culprit was Immediately ordered by the
Commissioners, and he Is now in Jail
awaiting action by the grand jury. The
theft was made possible through continued
lack of sufficient safeguards condition
which led to the appointment of John r.
Garrison as auditor on August 10, 1913, to
supersede j. T. Petty. and to the entire
separation Of the auditors office from the
receipt and payment OF money. the office
now being restricted to its legitimate func-
items of auditing and accounting. Mr..
Garrison, who, after long service in the
Treasury Department. achieved brilliant
record as auditor Of Porto Rico. has al
ready accomplished many reforms in the
auditors office, improving and systematic
ing the methods of doing business. In fact.
the defalcation Of Watson has not been
without its redeeming feature, for 1t has
led to a thorough investigation of con-
ditions which made the theft possible and
the consequent remedy of faulty methods.
In this connection, the Commissioners de-
sire to indorse the recommendations in the
report OF the auditor, especially those re-
deposit fund and to the settlement of checks
drawn in payment Of claims against the
District and which have remained out
standing unsatisfied and unpaid for three
years or longer There is every reason
why the clerical force Of the auditors Office
should be increased The work has expand
ed with the growth and development Of
the District and the expense involved in
additional salaries will be more than COM
pensated by the increased thoroughness
with which the thousands of accounts and
the books of the, offices of the assessor
and collector will be examined.
Disbursing Officer.
Under the new system the disbursing off,
Ger of the District, who is bonded to the
amount of $4,000, has been given a dig
nifty and responsibility which he did not
previously possess, but which is contem-
plated by the law. One of the anomalies
of the old method of doing business
was the delivery of checks by the auditor
after they had been signed by the disburs-
ing officer, the latter being regarded as u
mere appendage Of the auditors office. This
practice has been discontinued and pay
ments are made directly by the disbursing
officer. Many improvements have been
made in the preparation and certiication
Of pay rolls and vouchers, until, in fact
it is believed that the interests Of the Dis
tr1ct are now safeguarded in the highest
possible degree.
Purchase Of Supplies.
Under the order Of the Commissioners
adopted May %, 1895, all acquisitions
for general supplies, except in the Engin-
eer Department. were filled upon the order
Of the auditor and the property clerk. the
submission of acquisitions to the Commits
sioners being provided for only in cases
where the propriety or expedency Of grant
ing the requisitioa was a matter of doubt
in the minds of the subordinate officers.
After the discovery of the defalcation of
Watson, and while the auditors office was
in charge of the acting auditor. the atten-
ton of the Commissioners was invited to
these acquisitions. Investigation showed
that an unduly large proportion of the ar
ticles purchased were being secured in the
open market, and in many cases without
competition and upon a mere verbal agree
ment, the dealer not being required either
to sign contract or to give bond for the
faithful performance of his agreement.
These open-market purchases have been
superseded by competitive bids on all sup
plies not included in the annual schedules,
the result being a great saving to the Dis
trict 1t will be the endeavor of the Com
missioners in the future to put under con-
tract all supplies furnished the District,
thus eliminating every possible suspicion
of favoritism or collision. AS means of
improving the entire system of purchasing
and distributing District supplies. the Com
missioners have incorporated into their es-
Inmates a scheme for the reorganization
of the office of the property clerk and con-
soidation with that of the superintendent
of property of the Engineer Department,
and 1t is hoped that Congress Will agree to
the enactment of legislation which will al
low this proposed reorganization to be
made effective.
Assessment and Collection Of Taxes.
The imposition Of a personal tax law
I,x, cd In fha Ia or
year of SAT- ,95+28 as taxes upon personal
property. Although a personal tax is al
ways more or less Objectionable, and it's
enforcement apt to become a dead letter,
the Commissioners take pleasure in stat
ing that the citizens of the District have
accepted the legislation with the mini
mum of opposition. The execution OF the
law has, of course. created many prob
lems but the Commissioners have attemp-
ed to solve all questions in spirit Of
equity to the District and to the taxpayer.
Considering the many interests involved,
complaints have not been numerous, and
the acQuiescence In the tax indicates the
patriotic willingness of the District peo-
Die to bear their share Of the burden of
maintaining the national capital. Some
amendments to the law will be suggested
by the Commissioners.
There should be a reduction of the tax
now levied on building associations and
savings banks for the helpful work done
by these institutions IN pTOVlulHS HOlNeS
for the nonwealthy class, and encouraging
thrift ought not to be hampered. 1t
would also seem to be wise to exempt from
taxation such art galleries owned by pr1-
yate citizens are thrown open to the
public free of charge at frequent periods
Attention is also called to what seems to be
a discrimination as between certain cor
nora lions and individuals carrying on the
same kinds of business with view to
remedial legislation. The Commissioners
approye the recommendation OF the as
SCISSOR that all corporations which by rea-
son Of Incorporation receive no special
franchise or privilege be assessed and tax
ed as individuals and partnerships con-
Quoting the same kind Of business or en-
ternrise are assessed and taxed.
The assessor recommends that the period
for meeting of the board OF personal tax
anpeals be changed from the present time
November 10 to December 10 each year
to from the first Monday In February TO
the second Monday in March. each year,
both days included, to enable the personal
tax appraisers to make thorough canvass
of the city. which at present is far from
satisfactory.
Payments of Tax Arrears.
The efforts of the Commissioners to en-
force the payment of arrears of taxes. fell
lowing the enactment Of appropriate legis-
lation, have been unusually successful, the