The Montgomery advertiser., 1903-06-10

 IS ALI EGED
 -$ U. M. Wats$ Jr., Under
 Y.irest. HIS 40RTAGE IS LARGE Charged with Embezzling From the Government. Amount Estimated at from $40. 900 to $75, ,ooO-Connected With the Department of the District
 of Columbia.

washington. June s-James M. Watson. Jr., clerk in the office of the Auditor of the District of Columbia and son-in-la " or wealthy retired railroad contractor. was arrested today on a charge of em- oezzlement of government. funds.
 The amount is estimated at from $40. 00O to $75,00e The warrant makes the specific chage of embeztzlement of S. ooC which represents only a portion of the alleged peculations. Watson was not bonded and in case Watson or his rela- lives fail to make good the alleged losses. Auditor J. E. Petty will be respons nsibie for the amount. The auditors bond is for $20,0Vv
 The money alleged to have been embez- zled was part of the funds deposited with the auditor by property owners who are willing to pay half or all costs of im- prov ments abutting on their property, such as paving. sewering, etc. This em- braces deposits by railway companies, electric light companies and telephone companies and is entirely separate from the other accounts.
 Correct Up to February, 1902.
 This account is not subject to review by the Treasury Department, but it is checked by the clerk in charge of the corresponding account in the department and he reported 1t correct as late as Febreuary, 1902.
 The depositors, 1t Is said. have the right to recover from the district through suit.
 The auditors office Is under the super vision 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 the bank to his own credit. Watson, 1t is alleged, has been entrusted with mak- ing the. deposits and has returned the pass book In apparently proper condition in each instance. He has been an em- ploye of the district for four years and the alleged Notifications are supposed to have occurred throughout most of this period.
 The discovery of the alleged shortage was made several days ago. but was kept secret by the auditor in the hope of secur- ing restitution. The commissioners of the district were made acquainted with the conditions of affairs this morning and at special session demanded from Aud itor Petty formal report on the matter and an explanation of the system by which such a large sum of money could be abstracted without earlier detection. The system is said to have been inquired into ten or twelve days ago but no changes in methods resulted.
 Manipulation Was Clever.
 Auditor Petty said today that the &C., counts had been manipulated in such a clever manner that he was not certain of the exact situation until today,
 Watson was publisher of news bull letin issued in this city. In addition to running the paper he owned 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 Co-ope-a- tive Ass ociation, which takes in money from cmrlcyes on deposit and lends it out again. Many of the office holders at the district building are depositors In the association turning the money over en- tirely to Watson and getting his personal receipt in tiny books resembling bank books.
 Several months ago Major sylvestnr the chief of police here, investigated Wat sons reco:d snd 1t Is Stat9d he found that Watson was sent to the reform school while in his minority 0n charge Of forgery,