The Washington times., 1905-01-04
TELLS HOW WATSON
JUGG[[D ACCOUNTS
TO COVER TH[FTS
His Method Original,
Says Auditors Book
Keeper, Donovan
1EsTIflEs AT TRIAL
Three Witnesses Heard.
Bank Officials Identify
Checks.

James NJ a Watson. jr., appeared in
better spirits today when he entered the
courtroom on the second day of his
j trial, to face the charge OF embezzle-
ment of $4,000 of District funds. for
which he stands indicted.
| His wife was absent again today at
| the morning session of the court. She
was, however, in the City Hall before
the court convened.
AS on yesterday. Watson paid strict
attention to the testimony of the wit
nesses called to speak against him and
TO explain the methods pursued by him
to hide his alleged defalcations. At
times smile would brighten his counte-
nance as he listened to the explanation
Of some of the witnesses relative to the
workings of the Auditors Office
/ Little Cross-Examination-
| Witnesses called by the Government
We're not cross-examined al any length.
The questions asked by Wilson's coun-
| sci were in keeping with the line of de-
fense announced yesterday afternoon by
/ D. W. Baker, that Audfte. Petty had
no authority to handle the fund in ques-
ton as he did. and sequently the
While there was nothing particularly
| interesting in the testimony since Mr..
! Petty yesterday told of Watsons ad-
/ mission of his guilt, the attendance to-
day was even larger than on the open
| ing day.
Three Witnesses Called.
Up to the recess hour only three wit
nesses We're heard. Two of these were
] r.fT9 L
| ttonal Bank and the o.ner the chief
bookkeeper in the Office OF the Auditor
of the District The testimony of these,
| with the exception of that of MIR. Donos
/ van, bookkeeper for the Auditor wa
principally relative to the identification
OF certain checks which had passed
through the bank in which they are en-
/ ployed-
The bookkeeper went more into de-
tail. He told an interesting story of
how Watson is alleged TO have manipu-
lated the accounts of which re was in
charge.
/ An Original Method.
Mr.. Donovan said Watson had Gre
ated a system of his own for entering
and recording his transactions between
the Auditors Office and the local banks
The examination of the witnesses was
conducted by Assistant District Alter
ney Turner and the cross-examination
by D. w. Baker.
Cashier On Stand.
The first witness was John c. AtIey,
cashier of the Traders National Bank
He was called to identity certain checks
named in the indictment as having been
at some time deposited IN the Traders
National Bank He was shown check
marked "A and asked to identify it.
Mr. Baker for the defense objected 10
the witness answering. on the ground
: that il would be a mere expression of
opinion.
Justice Wright ruled that the witness
could tell the custom of handling checks
on the Treasury by his bank
On cross-examination by Mr. Baker
; the witness said all checks on which
the bank received payment Were so in
dorsed.
| William A. Smith, formerly employed
as bookkeeper at the Traders National
Bank, was called to Identify and ex-
plain the deposit slips of deposits made
! ! il. the Traders National Bank by Wat
= ditor Petty.
r Bank Slips Allowed.
Counsel for the defense objected to
S the slips being offered as evidence
4 on the ground that 1t was not shown
r they were in the handwriting of Wat.
. SON. The court held that as the slips
were evidence of transactions with the
pank of money deposited, they were ad-
5 missible as evidence, irrespective OF
] who made them out or in whose writing
: they are. The witness was not cross
examined.
H., faf
n in the Auditors office, WAS next called
] After examining The deposit slips" of.
fered in evidence he said all of then
: exSept the one dated November l5 1901
e were in the handwriting of Watson.
Watson's Office Duties.
n Mr.. Donovan then explained in detail
| Watson's duties in connection with the
7 keeping of the deposit and Assessment
: : funds. The fund, he said. was divided
r into three parts, one of which was KEEP
o In one of the local banks. He then ex
| planned the methods OF work in tbs
! Auditors Office, the channels through
= which checks and vouchers pass. befor,
e they went into Watson's possession. anC
: were deposited. by him in one OF III,
| local banks
When the court convened after recess
Mr.. Donovan resumed his testimony.
: The first question asked the witness
= resulted in D. W Baker counsel ro
i Watson. announcing that II viii be con
: tended and argued that the defendln
= cannot be held responsible for tn
= checks after they became of value b,
= the Endorsement OF the Auditor. Wat
Q son, II will be contended simply actet
as 81 messenger for the Auditor and i
T any offense was committed il was lar
r cen. and not embeZZiement
= on redirect examination by Distric
: Attorney Beach. Mr.. Donovan said /
CONTINUED on Ninth Page)