Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-07-10
Statement of His Relations
With ]. M. A. Watson.
REFERENCE TO AUDITOR
CALLS ATTENTION TO ALLEGED
INACCURACIES.
Replies to Certain Allegations in the
Report Mady by Auditor
J. T. Petty.

The statement of w. r. Lapham of the
engineer department In connection with
the Watson defalcation became public TO-
day. Mr.. Lapham is in charge OF 'he
measurements of cuts made in the pave
ments by plumbers, the cost OF repairs 10
these having been paid from the deposit
funds handled by Watson. Lapham re-
port was made subsequent to the pubiica-
ton of Mr.. Pettys statement concerning
the defalcation and is addressed to Col.
John Biddle the Engineer Commissioner.
.In compliance with your request and in
Justice to myself" says Inspector Lapham,
IT have the honor to call your attention to
one or two unintentional inaccuracies In
the published statement of the auditor,
which relate to my connection with the al
legged defalcation OF ]. M. A Watson
an referring TO the late Miss Vests care
fulncss and to my actions IN comparison
l would say that the deposit and assess
ment fund has been checked but three times
since my connection with the District or in
about ten years; once by Mr.. Donovan ana
myself once by Mr.. Tweedale and myself
and the third time by Mr. Watson and my
self in February, 1902. this last checking
being much the most thorough. After this
last checking l made a red ink entry on my
ledger with Capt Newcomers PERMISSION
charging off the small dlHerence winch
senting the total difference in years or WORK
and the expenditure of hundreds of thou
sands OF dollars.
Bank Book Not Examined.
"At neither of these checkings was the
bank book of the auditor examined, nor dlo
I consider It was in any way my DUTY 10
do so. II after the checking had determined
that the accounts of the engineers depart
ment and the auditor agreed the auoitof
desired to have his bank book balanced 10
the end that the balance in the fund anu
the balance in the bank agreed, IL was not
my duty to see that it was done, nor was II
within the province Of the engineer depart
ment. And further, in reference to the
whole cost deposit work, the aggregate Oh
which is many times the amount of the de-
post and assessment fund and the Slgnl1-
canoe of whose balance was corresponding
ly more important, / desire to call attention
to the fact that only part-altnougn oy
far the greater part-of these reached my
desk. Many of them which never recei'eu
were on account of water department
work, some were on account OF sewer de-
partment work, and rev on account ol
work for the parking commission or the
electrical department. and possibly other
departments as well, and these vouchers
against the whole cost deposits. since they
would not appear on my books and would
appear on the auditors at once, show that
no possible comparison of my accounts with
Watson's could be significant as to the cor
funds.
His Relations With Watson.
MY business connection with Mr.. Wat
son began on May p. 1902. at which date
the News was started. 1 had no connection
whatever with his barber shop, lunch
room, patent medicines. automobile storage
establishment, gum coats or bucket shop
and never knew that he had some of the
interests. notably the last two and the
lunch ROOM and as a matter of fact he did
not ask me to become interested In any
of these matters. knowing that 1 had no
moneys for such purposes. The amount of
money which 1t has been stated that Wat
son lost in the News has been grossly ex-
aggerated. l have not the figures at hand,
but do not think the amount he has In
bested above $500. The entire plant was
appraised May 81 by two experts, looking
TO consolidation with another plant, for
mutual benefit. and the appraisers valua-
ton of our plant was $2576. upon which an
Indebtedness of $3.50 (for the cylinder preSs)
still exists. as we'll as some current bills
not paid.
THE auditor is In error as to my social
relations with Mr. Watson. 1t was my
custom to reach office each day at D
o'clock pm, and he was rarely there after
o'clock. All Of my calls at his residence,
which were very few indeed. were OF
business nature, as were his visits to me,
and the fact accounts for my failing to
suspect the difference between his income
end his outgo,' as ] never saw any evidence
of any extravaganza except the automo-
bile which he accounted to me for by say
ing that his father-in-law had given 1t to
his wife, and my hearing upon all sides
of Col. Bryant's great wealth, and seeing
actual evidences at all times of ample
means which came to him through the
most legitimate channels, such as checks
from his father-in-law, the title company,
etc, were the causes which led to me have
no suspicion OF any wrong doing. 1
cannot refrain from calling attention to
the fact that the first apparent laches on
four years before l had any business rela-
tons with him.
Denies Making Certain Deposit.
AT this time l wish to enter an official
denial of the statements made to you con-
corning me, notably that 1 had been seen
recently to deposit the sum of $4,000 in a
local bank, and of my weekly visit to the
New Willard with Mr.. Watson and his
family. Both statements are absurd and
were doubtless circulated by friends of my
contemporary, and having been fully dis
proved to you. 1t is unnecessary for me to
go into any explanation of them at this
time, further than to say that no such de-
posit was ever made by me or In my be-
half, as the records of the bank show. and
my visits to the hotel named number eX-
actly one. which to call upon a friend
and at which time Mr. Watson was not
present
II cannot allow this opportunity to pass
without expressing my sincere sympathy
with our honored auditor. nor can fail to
express my deep appreciation for your kind
treatment of me. an almost entire stranger,
In all of this trouble. Your confidence as
well as the confidence of the other Com
missioners. expressed, l am told. in an ofh-
cial board meeting. is now and always will
be a source of the deepest qualification to