The Washington times., 1905-06-09
SMITHSONIAN WILL
Be THE LOSER BY
KARR'S DOWN. ALL
Money Involved in De-
falcatlon Not Covered
by Bond.
BOARD OF REGENTS ACTS
Difficulty in Way of Finding
Out the Amount
Embezzled.
BOARD OF REGENTS ACTS

| The Smithsonian Institution will prob
ably lose every dollar Of the $4,000, and
more. embezzied by W. W. Karr, the
/ defaulting disbursing officer. This was
| the fear expressed this morning through
! the executive committee Of the board
/ OF regents Of the institution
KARI WAS bonded in the sum of rs
UCo, II was explained, "but his bond
extended only TO the protection OF the
Government, and guaranteed the hon.
| est handling OF the various appropria-
tions for institutions subsidiary TO the
| Smithsonian"
James Smithson beQueathed upward OF
sooa000 20 the United States Government
for the founding of an institution TO pro-
mote scientific research throughout the
world. and that, in consequence, the
Smithsonian Institution IS a branch
OF the Government. but 1t may pa taken
as assured that the United States E1del-
ity and Guarantee Company, of Balti-
more. who issued Karr's bond. will not
SO regard their obligation, and that they
will contest to the court of last resort
karr's indemnity remaining. after the
Governments losses have been made
good, to repair the fortunes Of the
Smithsonian Institution.
Narrow Escape Last Year.
Only this morning was it learned how
narrow an escape from exposure did
w w. Karr, the defauiting disburstng
officer Of the Smithsonian Institution,
have a year ago on the occasion OF
the last annual meeting of the board OF
regents Of the Institution On that oc-
casion Karr reported a balance In the
treasury to the credit Of the Institu-
ton of more than $4,000.
This the board thought much more
than their needs for the ensuing year,
and 1t was agreed that rs. 900 be added
to the trust funds in the United States
Treasury so that the increase In the in
teresr derived night In Just that amount
advance the income Of the Institution.
Karr deposited the 81. .000. and it left
him such a small balance that even.
manipulation of his own books could not
tide over the affairs Of the institution
for another full year, and, as stated in
the expose yesterday, the Smithsonian
Institution account In the Treasury was
entailing the discovery OF Karr's dis
honesty and his arrest AT the time
the $4,000 was ordered deposited some
of the regents thought that $5o. coo could
be spared and turned over to the Treas
ury If this had been ordered Karr's
dishonesty would have been discovered
at once
Finally Gets Bail.
After being held in the office, OF Dep
uty United States Marshal Lacey, in
the Police Court building. until o'clock
yesterday, while his friends vatnly tried
to secure the 10 900 bond required by
Judge Scott. and still later finding HIM
self prisoner at the District Jail, Karr
finally secured his liberty last night,
when the Title. Guaranty and Trust
Company, Of Scranton, Pa, qualified as
Surety and KARI was released
Last night he spent at his home, but
early this morning he was out again.
proved futile
One of Karr's sons took issue with tha
statements made yesterday that his ia
ther was IN the habit OF going down
the line" of saloons in the heart OF the
| city treating all comers and finding at
| least temporary reiieT fro;n the strain
| in the admiriug society which such lib
crafty readily attracted.
Meeting of the Board.
| Plans for meeting of the full hoard
of regents of the Smithsonian Institu-
| ton have already been laid, but the
date not yet set. To cope with the i'm
mediate emergency the executive COM
mittee of the board held a meeting yes
terday Ex-senator John B. Henderson
| and Alexander Graham Bell were the
only members present, Hit. their coll
! league, being out OF the city on account
| of Ill health.
Nearly all day was devoted to running
UP the accounts with q result that 1t
| was announced this morning that karr's
defalcations could not be less than S46,-
| 600. the amount roughly estimated yes
| terday. and that the stealings might
run so much higher and extend into so
| many channels that It would never be
possible fully and correctly to estimate
| them
| In exnlaining the possibilities open to
Karr'S pilfering fingers the executive
| committee pointed out that to him were
| turned ove- all checks received by Sec
| retary Langley on account of Govern
| ment publications sent abroad in the
| workings Of the international exchanges.
| The Secretary kept no account of the
| amounts involved, noy did anyone else,
so there was no check upon harr and
| he could easily secure cash upon the
| papers made negotiable by the signature
| of Secretary Langley and deposit in the
Treasury only such parts OF the amounts
as he saw Ht-
Government Publications.
From the beginning when only scienti-
| fic works were included in the exchanges
between this Government and the vari-
Gus foreign governments the Congress,
during succeeding years. added con-
stantly to the number of publications
circulated through the Smithsonian In
stitution exchange until of recent years
every department report. and. in fact.
everything turned out by the Govern
! nient In printed form. found its way
| into the NAV of the International EX-
change In this way the workings of the
exchange grew TO enormous proportions,
and with the growth the opportunities
increased for dishonesty on the part C.