The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-03-11
United states District Court.
Before Judge Belts.

Before Judge Belts.
MARCH 0.-The United States John Peters, ct. al
This was an action brought by the Gov ernment agans
defendants a bond conditioned for the psyment o.
$685. The defendants are importing merchants and In
duties goods imported by them in that year. About
i've years ago suits were commenced all the bonds
but the a similar question Is involved in all
il was agreed decision in this suit should govern
the others The United States District Attorney pro-
ceeded to state that the defendants claimed set of
against their bonds to wit:tha the in
debed to them before and at tho OF this
suit in $4,000, bill of exchange drawn by one
James Reside, upon the Post Master General of the
United States and by the latter accepted and al
forwards endorsed to the DEFENDANTS when came to
maturity presented for payment and refused and
is now sought be OF against the present
well against the claims in the other suits, the
amount OF the BILL with interest," will the gross
amount claimed on all the bonds. The Government
sists the set of on the ground that Reside the drawer
Of this BILL indebted to them the time il became
due in the sum OF 900 They also say il was en-.
dorsed to defendant to its becoming due
and they therefore insist the defendants took II subject
to all its equities From this state Of facts It will be
the questions between the parties are first, whether
not, when the bill became DUE Reside debtor
the United Staes and secondly, II held at this time
by bona fde holder throug whom the defendants now
claim The defendants bond was put in and read and
the United States District Attorney rested.
Mr.. GERARD opened the defence He said that, In the
year 1885, the United States Government was very
much embarrassed, particularly the Post Ofhce De.
partment, and the government obliged to resort to
Mr. Barry was then the Post Master General, and
barrassed he by the dsoganzed state Of the depart
ment funds, that had to Dr. Mason
him in the management OF the department and to
assist in raising funds. Mr.. Reeside at that time
held large contracts under government, and had
under his contract the management Of the whole Of the
Western mails, and from his connection with the govern
ment he wished 10 give them every aid In his power and
long he had Of his own he lent them
freely to the government and in return he compel
cd to take their acceptances instead oil cash. which
dshonered when they came to maturity the
was Reside became embarrassed still he went
ceiving their drafts to enable him to perform his
tracts and carry on his business In 1885, he received
from the post ONCE tho draft question amongst Others
was an absolute unqualified draft and admitted to be
for value received. Some time alter, he passed to
Mr.. Fuller tor work done by him a sub contractor,
and Fuller got discounted at the Metropolitan Bank III
Washington, upon the enforcement Of himself and Roe
side when became due the government did not take
up, and il turned back Fuller, who was obliged
to pay the bank Fuller afterwards sold to Mr. Col.
by for $4,000, and Colby brought 10 New York and
Washington for collection. but the COVE refused
TO pay it, alleging that Reside in their debt Mr.
Gerard went to say, hat before Mr. Barry LETT Office
he investigated the accounts Of Reside and struck
balance In his favor Of SlS9 000 which was
paid TO his widow that when Mr. Kendall the successor
Of Mr. Barry camo into ONCE he attempted to re open
the accounts and tn bring Reside in debt that suit
was then commenced in the Supreme Court and that
tribunal decided that the having beef examined
was precuded from any further alton and
defendants now nsishey have right Of against
the amount due on their bonds to government Alter
Mr. Gerard had CONCLUDED his opsniog he read tho evil
dence Of DR.. Mason and two otner witnesses de
bene and then agreed to take verdict for the
defendants subject to the opinion Of the court upon one
or two points raised BY the District Attorney