Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-08
IN TOLLS OF THE Law
Disbursing Officer of the
Smithsonian Institute.
ARRESTED YESTERDAY
CHARGED WITH EMBEZZLING $46,.
600 OF FUNDS.
Has Been Going on for Many Years
and the Accounts Have Been
Cooked.

William M. Kari accountant and dis
bursting officer of the Smithsonian Institu-
ton, and for twenty-five years one of It's
trusted employees, was arrested yesterday
afternoon on the charge of embezzling
more than $4,000 from the funds of the in
stitution. Mr.. karr was taken into Gus
tody at his home 1918 Baltimore street, by
Detectives Muller, Peck and McNamee on
a warrant sworn out by Mr.. Samuel p.
Langley, the secretary and executive head
of the Smithsonian Institution. When the
detectives appeared to serve the warrant
Mr.. Kari made futile attempt to draw
loaded revolver from his pocket, but was
quickly overpowered and taken to the first
precinct police station. He is understood
to have confessed to Assistant Secretary
Rathbun of the institution that his steal
ings aggregated more than $4,000, and that
they had been going on for about fifteen
years. Mr.. Karr is a native of Memphis,
is about fifty years old and has wife ana
four children.
The Smithsonian Institution has what is
known as an international exchange service,
through which it forwards to foreign gov
ernments documents, books, etc, OF various
states, and to institutions of various kinds.
For this service a charge of D cents
mound is made. 1t karrS practlce.
according to his statement, to take the
checks sent to the institution in payment
of this service have them cashed and con-
vert the money to his own use, or such
portions of it as he did not turn INTO the
Treasury Department He manipulated me
accounts of the institution before their
presentation to- the regular audlIlhS coli-
mittee so as to cover up his steahngs
The shortage first discovered carry
this week when a check drawn upon the
institutions funds and presented to the
Treasury Department for payment was re.
fused AS Kari handled all the money OF
the institution prompt measures We're taken
to have him kept under surN elllance, ana
following a close examination OF the DOCKS
of the institution he was placed under ar
rest Karr had been away from his once
off and on for the past three months, ana
had not been there at all since last Ihurs-
day On that day. he was granted, at his
own request, an indefinite leave of absence.
1t is said that he was preparing for "a trip
to Europe when arrested.
No Suspicion of His Wrongdoing.
Karr's salary was $500 year, and there
was never for moment the slightest sus--
picion that he lived beyond it, or even up
to it. His home on Baltimore street, which
he owns. is a handsome one, and is well
furnished but he did little entertaining and
had no extravagances. 1t is supposed that
he lost the money embezzled from the insti-
tuition in unlucky attempts to get on the
right side of the stock market.
The government will not lose dollar as
a result of karr's defalcation, all the loss
falling on the Smithsonian Institution. AS
accountant of that institution Karr was not
bonded but the disbursing officer for the
allied government bureaus under it he was
required to furnish bond. 1t is said that
Karr's account at the treasury June 30
last credited him with $47, S73, while,
matter of fact. he had only s1,S72 in cash
on hand.
Despite the fact that Karr carried on the
defalcation for about fifteen years, he was
not once suspected during all that time.
His honesty was never once brought into
question, and his arrest came as an abso-
lutte surprise to the employees of the Smith
sonian Institution and to his many friends
in the city The account books which were
kept in the disbursing office, under the di-
rection of Mr. Karr, by Clerks Whiting and
Dorsey, were apparently in perfect order
up to the time of discovery. More than
that, it is said that all of the institutions
set of books are balanced perfectly.
Consequently, when Secretary Langley
was notified by the Treasury Department
last Tuesday that the Institutions account
had been oVerdrawn, he was absolutely
dumfounded. He Immediately held a con-
ference with Assistant Secretary Rathbun
and an investigation was at once begun.
AS Mr.. karr was the disbursing officer and
handled all the money, he was the first per-
son sent for. He not in the Office, but
his books were gone over and appeared to
balance to a cent. Secretary Langley was
not treasured, however, and Assistant Sec
rotary Rathbun was sent to karr'S house
to learn what he had to say about the
LITIGATION from the Treasury Department.
To Mr.. Rathbun, who had been his friend
for years, Karr broke down and confessed.
He did not. however. account for the
money, and 1t is not yet known just when
he committed the first theft why he did
it. and what he did with the $4,000 stolen
In the mast fifteen