Evening star., 1903-07-03
IS NO LONGER AUDITOR
Mr.. James 7. Petty Relieved
of Office.
ACTION TAKEN TODAY
SUGGESTED TRANSFER TO AN
OTHER POSITION.
Promotion of Alexander Mckenzie to
Authorship Proposed-The Mat
ter in Allegiance.
ACTION TAKEN TODAY

ter in Allegiance.
At the conclusion of a board session held
shortly before o'clock this afternoon the
District Commissioners notified Mr.. James
r. Petty, the auditor of the District, that
there would have to be a change in the
District authorship.
1t is the plan of the Commissioners 10
place Mr.. Petty on the board Of personal
tax appraisers, at 5000 a year, and to
elevate Mr.. Alexander Mckenzie from the
personal tax board to the auditorial once
at $1,000 Mr.. Mckenzie was formerly
deputy auditor under Mr.. Petty, having
been appointed on the personal tax board
the 1st of July 1902.
Mr. Petty was closeted with the Commits
sioners this afternoon, and has taken lhe
proposed change under Amusement II Is
understood he Is averse to accepting the
transfer to the personal tax board. Inc
matter is still held in allegiance, the only
positive action taken by the Commissioners
being that Mr.. Petty can no longer serve
as auditor. ,
Mr.. Petty has been connected with the
District government since 1870 and mas
held the office of auditor, under pono oi
$2O, 600, since May l, 1888.
anticipated at the District building during
the past two or three days. 1t had become
quite generally understood that the feenng
Of the Commissioners was adverse 10 the
auditor continuing In office.
They felt they could not overlook the
carelessness or negligence which led to the
possibility of James NJ A. watson de-
faulting in the sum of 1890 Watson was
q clerk in Mr.. Petty'S office and was given
complete control of the deposit and permit
funds, which during the four years and
half that Watson was employed amounted
to more than $1OOOOO.
His Methods Of Securing Funds.
Watson secured the money by cashing
checks intrusted to him and indorsed by
the auditor. Watson was supposed to have
deposited these checks to the credit OF the
auditor in the three banks nth which that
official dealt. Watson's peculations also
included treasury checks.
While Watson was away on two weeks
leave the first part of June the mixed con-
dition of his books was first discovered.
Nothing criminal was suspected at the
time. 1t was thought he had simply been
careless. Further inquiry developed the
fact that he was short in excess of $4,000.
The remainder of the story, ihcluding Wat
sons incarceration and commitment to
Jail, where he still fingers in default OF ball,
is well known.
Mr.. Petty submitted lengthy report of
the defalcation last Friday night. He at
tempted to show in the statement that he
was not blame in the matter as he was not
advised of Watson's record as former In
mate of the reform school on a charge of
forgery, and that there was no way, under
the system adopted by. the Commissioners.
whereby the shortage could have earlier
been discovered.
In regard to his delay in reporting the
matter to the Commissioners, Mr.. Petty
says he did report soon as he was. GER
tain of the facts. He declared his willing
ness to stand or fall on his record Of
thirty-twO years of District service.
Regretted by His Friends.
The difficulty in which Mr.. Petty has
found himself since the Watson defalca-
ton has been generally regretted by his
friends and the great majority of citizens
who are acquainted with his excellent serv
ices to the District.
He has taken such a prominent part in
the affairs Of the District that he has fire.
quently been mentioned in connection with
an elevation to commissionership. When
the democratic vacancy occurred on the
board last summer through the death of
Commissioner John w. Ross, Mr.. Petty
was one of the candidates most promi
nently spoken Of.
1t was generally conceded at the last
that the choice lay between Mr.. West who
was appointed, and Mr.. Petty. The latter
declared at all times he was not candi-
date but his name was urged before the
President
Mr.. Petty is an expert accountant, and
was always regarded as one of the most
valuable of municipal employees, even dur
ing the days of bookkeeping under another
auditor Mr.. Petty has been quick to de-
tect and hold up any expenditures that
might be questioned. He has kept close
watch on all the District departments and
appropriations
In the present instance Mr.. Petty is re-
garded as having been the victim of over
confidence. He admits IN his report that
Watson completely won his regard, and he
looked upon him as son. Mr.. Watson
went to Mr. Petty to consult with him about
private matters, and so the auditor felt he
had his entire confidence. The relations be-
tween the two were SO close that Mr.. Petty
never suspected Jimmy" of any wrongdo-
ing whatsoever. Matters were thus allowed
to run along until the crisis reached.
Discovery of Shortage.
The discovery of Watson's shortage in
the Office Of the auditor was made by the
Commissioners the morning OF June 8. The
day will ever be remembered in the annals
of District affairs.
Commissioner Henry L. West who is the
Commissioner in charge of the auditors
office. was sitting quietly at his desk that
Tuesday morning when a reporter of The
Star approached him and asked if there
was any truth in the rumOr that James M
"A. Watson of the auditors office was short
to the extent of SIS, 600.
Mr.. West declared that such a thing
could hardly be. He admitted that Wat
son had given the officials some trouble
in the past. but he did not think he could
have managed to get away with any
money. Mr.. West was inclined to believe
there had merely been some misplaced
checks. However. he declared he would
send for the auditor. Mr.. Petty, and ask
him about the matter.
Mr.. Petty's footsteps were soon heard
In the corridor. When the reporter entered
Mr.. Vests room after his interview with
the auditor the Commissioner said the ru-
mors We're true.
In his report Of the affair Auditor Petty
says he was waiting in Commissioner Mac
farlands office to acquaint him with the
news Of the discovered defalcation when
Mr.. Vests messenger came for him. The
auditor had found the shortage several DAYS
before, but had kept the matter secret. he
says, until he could be sure of all the facts
Meantime he had approached Watson's
father-in-law, John H. Bryant and had
asked him to make restitution of the stolen
money. He says Mr.. Bryant declared he
would see about the matter If the affair
was kept quiet.
Through the columns Of The Star exclu-
sively the evening of June the news of
the big defalcation was given to the people
of Washington Naturally there was a sem