Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-06-10
A BIG SHORTAGE
In@Accounts of the District of
Columbia Auditor.
J. N. Watson, Jr., Arrested Figures
May Reach $4,000.
Auditor Is csponsibIe-Watson Said
to Have Record.

Washington, June 9.-James NJ. Wat
son. Jr.. a clerk in the office of the
auditor for the District of Columbia
and the law of wealthy re-
tired railroad contractor, was arrested,
today, on charge of embeZZlement of
government funds. The amount is es-
timated at from 100000 to $4,000. The
warrant makes the specific charge of
embezzlement of $4,000, which repre-
6ents only portion of the alleged
populations. 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, Au-
ditor r. Petty Will be held re-
sponsible for the amount The au-
ditor's bond is for 100000. The money
alleged to have been embezzled was
part of the funds deposited in the Of
flee of the auditor by property owners
who are willing to pay half or all costs
of improvements abutting on their
property, such as paving, sidewalks,
alleys and streets.
The depositors. it is said, have the
right to recover from the district
through suit. The auditors office is
under the supervision of the board of
commissioners of the District of Co
lumba. Auditor Petty has complete
charge Of the assessment and permit
fund.- depositing the money in bank
to his own credit Mr.. Watson. it is
alleged, has been entrusted with MAX
ing the deposits and has returned the
pass book in apparently proper condi-
ton in each instance. He has been an
employe of the district for four years
and the alleged defalcatiOnS are sup
posed to have occurred throughout
most of this period.
The discovery of the alleged short
age was made several days ago, but
was kept secret by the auditor in the
hope of securing restitution. The COM
missioners of the district We're made
acquainted with the condition of af-
fairs, this morning and at special
session, demanded from Auditor Petty
a formal report on the matter and an
explanation of the system by which
such large sum of money could be
abstr;.C tcd without earlier detection.
The system is said to have been in
uuired into 10 or II years ago but no
change in methods resulted. Auditor
Petty said, today, that the accounts
had been manipulated in such 4 clever
manner that he was not certain of the
situation, until today
Watson was n joint publisher OF n
news bulletin issued in this city. In
addition to running the paper he own
cd a barber shop which he recently
has been trying to sell. lie was the
promoter Of n patent medicine con-
Germ and the treasurer of what is known
az the District Cooperative ASSocia =
ton, which takes its money from en-
ployes on deposit and lends it out
again. Many of the office holders ut
the District building are depoSitors in
the association, turning the money over
entirely to Watson and getting his per
sonal receipt in tiny books resembling
bank hooks.
Several months ago. Major Sylvester
the chief of police here, investigated
Watson's record and it is stated he
found that Watson was sent to the
Reform School while in his minority
or charge of forgery.
Watson's bail was fixed Mt $4,000 which
It was stated will be furnished. tomor-
row The arrested man spent the Right
in n police station Watson attributes
the alleged shortage to careless hook
keeping and denies that he has been gull
ty of any omheZzlCment.