Avery bequest.—Offers have been received during the year from private parties for the purchase of several of the Avery properties, but as they were deemed inadequate, the proposals were not considered. An appraisement of these properties shows an estimated total valuation of $35,500.
Sprague and Reid bequests.—There have been no changes in the status of the Sprague and Reid bequests during the year.
On motion the report was accepted.
REPORT OF THE EXECUTIVE COMMITTEE ON THE DEFALCATIONS OF
W. W. KARR.
Doctor Bell, on behalf of the executive committee, presented a report based upon their examination into the defalcations of W. W. Karr, in compliance with the resolution of the Board of December 5. 1905. The methods employed by the former accountant in abstracting funds and the amounts embezzled were fully set forth. The peculations consisted mainly in appropriating miscellaneous receipts derived from the sale of publications, repayments of moneys, etc., though approximately $4,000 had been taken from funds received for the International Catalogue of Scientific Literature and $7,400 from Government appropriations for the National Museum. The latter sum, however, was immediately repaid by the company by which Karr was bonded. The capital of the Institution, in view of the manner of its investment, could not be touched.
Immediately upon the discovery of the defalcation Karr was apprehended. Later he was indicted, pleaded guilty, and was sentenced to five years' imprisonment in the penitentiary.
The report concluded with a statement of the safeguards which had been adopted to prevent the further misappropriation of funds, and with a draft of the following resolution:
Resolved. That the executive committee be authorized to employ an expert accountant to act as clerk of the committee in connection with its examination of accounts.
The resolution was agreed to and the report accepted.
Doctor Bell expressed the opinion that the Institution was responsible for the amount abstracted by the accountant from the funds of the International Catalogue of Scientific Literature, which amount should have been forwarded to the London office by the Institution, in accordance with its agreement to act as the American representative for the collection and transmission of subscriptions. This view was accepted by the Board, and on motion of Judge Gray the following resolution was adopted:
Resolved, That the executive committee be instructed to make application to Congress, as they may see fit, for an appropriation to cover the amount collected by the Institution for the International Catalogue of Scientific Literature and embezzled by its former accountant.
