The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1903-06-11
JAMES M. WATSON, JR, CHARGED
WITH EMBEZZLING GOVERN.
MEN7 FUNDS.
OPERATED FOR FOUR YEARS
HIS REGULATIONS IN THAT Pc.
ROD AMOUNT TO SIXTY THOU.
SAND DOLLARS.

Washington, June Johannes M.
Watson. Jr., CLERK in the Office Of
auditor Of the District Of Columbia
and the sonin-law of a wealthy retired
railway contractor, was arrested on a
charge of embezzlement Of govern
ment funds.
The amount is estimated at from
100000 to $4,000. The warrant
makes the specific charge of embez-
element Of $4,000, which represents
only a portion of the alleged pecula-
tons.
Watson was not bonded and in case
ne or his relations, several of whom
are said to be wealthy, fail to make
good the alleged losses, Auditor J. D.
Petty will be held responsible for the
amount. The auditors bond is for
$2O.OOO
The money alleged to have been
embezzled was part of the funds de-
posted in the office by property own
ers who are willing to pay half of all
costs of Improvements abutting on
their property, such as paving, side
walks, alleys and streets. This en-
braces deposits by railway contrac-
tors, electric light companies, tele-
phone companies, work on sidewalks,
sewer and water mains, and is en-
tirely separate from the other ac-
counts. This account is not subject
to review by the treasury department,
but it is checked by the clerk in charge
of the correspondending account in
the district department and he report
ed it correct as late as February, 1902.
Depositors May Recover.
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 commits
sioners of the District of Columbia.
Auditor Petty has complete charge of
the assessment and permit fund, de-
posting the money in a bank to his
own credit. Mr.. Watson, it is alleged,
has been entrusted with making the
deposits and has returned the pass
book in apparent proper condition in
each instance. He has been an en-.
ploye 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 CON-
missioners Of the district were made
acquainted with the condition of at.
fairs Tuesday morning and demanded
from Auditor Petty report and ex.
PLANTATION of the system by which so
large sum of money could have been
distracted without becoming known.
The system was inquired into some
ten or twelve years ago without any
change being made.
Auditor Petty said the accounts had
been manipulated in such a manner
that he was not acquainted with the
exact situation until Tuesday.
Had Many Schemes.
Watson was the joint publisher OF
a news bulletin issued in this city,
owner of barber shop, promoter of a
patent medicine concern and the
treasurer Of what is known as the
District Cooperation association,
which takes in money from employees
on deposit and lends it out again.
Many of the of1iceholders at the dis.
trict building are depositors in the
association, turning the money over
entirely to Watson and getting his
personal receipt in tiny books re
sembling bank books
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
on charge of forgery.
Watson's bail was fixed at $4,000,
which it was stated will be furnished
today by several bonding companies
with which arrangements to that eli.
Foo j MI
spent the night in a police station.
In long statement which he made
to reporter Watson attributed the
large shortage to careless bookkeep-
ing and denied that he had been gull.
ty Of any embezzlement.