Mahlon Pitney

“ Until the making of the order of June 13, 1888, there was no law, rule, or regulation making the auditor of the District accountable for public moneys, and we agree with the court of appeals that since there was no statute authorizing the District commissioners to receive or expend such permit work deposits, the order imposed no liability upon the auditor's bondsmen, because the moneys received from citizens for street improvements under the permit system were not public moneys in any legal sense, but funds of private citizens, held extraofficially by the public officers. ”

“ Certain rules promulgated by an order of the District commissioners, under date June 13, 1888, are likewise set forth. They have to do with the disposition of moneys deposited with the collector of taxes of the District by citizens of the District for (inter alia) 'permit work.' Certain duties akin to the normal functions of an auditor are by these rules imposed upon that officer, among which are the examination of vouchers and pay rolls prepared by the superintendents of streets and of sewers, respectively, for services rendered or material furnished, payable from the permit fund ”

“ Petty personally, or were by him misappropriated; that in fact it was the disbursing clerk in the auditor's office who cashed certain checks and embezzled the proceeds. The theory of the declaration is that Petty, as auditor, is responsible for the moneys represented by the checks, and bound to make good the defalcation of the disbursing officer; and this because of the character of the duties imposed upon the auditor in respect of certain funds known as the 'Permit Fund,' or the 'Deposit and Assessment Fund, Whole-Cost Work,' etc. ”