The Indianapolis journal., 1903-06-10
AN ALLEGED EMBEZZLER
j. M. WATSON, JR., CHARGED WITH
STEALING OVER 100000.
Clerk i'm the once of the Auditor Of
the District Of Columbia Who
Was Not Bonded.

WASHINGTON, June 9-James M. Wat
son. jr., clerk in the office Of the auditor
for the District of Columbia, and the SON.
in-law of a wealthy retired railroad con-
tractor, was arrested to-day on a charge Of
embezzement Of government funds. The
amount is estimated at from $4,000 to
$75, 900. The warrant makes the specific
charge Of embezzlement Of 5000, which rep
resents only a portion of the alleged pee
ulations 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 Auditor ]. T. Petty will
be held responsible for the amount. The
auditors bond is for $4,000.
The money alleged to have been embez-
zled was part of the funds deposited in the
office of the auditor by property owners who
are willing to pay half or all costs Of i'm
provements abuttng on their property, such
as paving sidewalks, alleys and streets
This embraces deposits by railway COM
panies electric light companies, telephone
companies for crossing sidewalks, for sew
ers and water mains. and is entirely sep
arate from the other accounts. This ac-
count is not subject to review by the Treas
ury Department but is checked by the clerk
in charge of the corresponding account in
the District department, and he reported
it correct as late as February 1902 The
depositOrs, 1T is said, have the right to re-
cover from the District through suit The
auditors office is under the supervision of
the Board OF Commissioners of the
District of Columbia Auditor Petty
has complete charge of the assessment and
permit fund, depositing the money in a
bank to his own credit. Mr.. Watson, it is
alleged. has been intrusted with making
the deposits and has returned the passbook
in apparently proper condition in each
instance. He has been an employe of the
District for four years and the alleged de-
falcationS arc supposed to have occurred
throughout most Of this period. Watson
was joint publisher OF a news bulletin
issued in this city. In addition to running
the paper he owned a barber shop which
he has been trying TO sell recently He also
was the promoter OF a patent medicine
concern and the treasurer of what is known
as the District Cooperation Association
deposit and lends IL out again. Many of
the Office holders at the District building
are depositors in the association. turning
the money over entirely to Watson and
getting his personal receipt in tiny books
resembling bank books.
Several months ago Major Sylvester the
chief or police here, investigated Watson's
record and IL Is stated he found that Wat
son sent to the reform school. while in
his minority. on a charge OF forgery
Watson's bail was fixed at $4,000 which
IL was stated. will be furnished to-mor,
row by several bonding companies with
which arrangements TO that effect will
be made The arrested man spent the
night in a police station In a long state
ment, which he made to a reporter, Wat
son attributed the alleged shortage TO
careless bookkeeping and denied that no
had been guilty OF any embezzlement.