Washington sentinel. [volume] (Washington [D.C.]) 1853-1855, 1854-10-14
Wasbingtun Seminal.

WdaBlllYtuil StHtllttt.
Report Of the Judiciary Committee ON the
Recovery Of the Money obtained by the
Gardiner and Mears Fraud.
Mr.. f. p. Stanton from the Judiciary Com.
mittee, submitted TO the House an able report
upon the legal responsibility of the agents
and attorneys of Dr. Gardiner to restore the
moneys by them respectively received from the
treasury, from which the following liberal ex-
tracts are made:
The terms of the resolution of the House
under which the committee is acting seem to
look especially to the question of legal liability
on the part of those who received any portion
of the money awarded. In order to determine
this question, it is necessary to ascertain the
facts, and consider the precise circumstances
under which the several portions of the fund
were paid to the persons receiving them. The
committee therefore proceed briefly and in
general terms to state these circumstances, SO
far as they have been developed in the course
Of their own investigations, or others which
may have been elsewhere conducted.
The amount of GARDENERS award
............................. S426,750 90
That of John FL. Mears. ............. l53,l25 90
Ofthe Gardiner claim the sum of 1921 ,562 so
was awarded in the name of Gardiner himself
The remaining part being $lO7,ls7 so, was
awarded to w. w. Corcoran, as the assignee
of DR.. Gardiner; and the whole amount, in
GLIDING both these sums was paid into the
hands of the said Corcoran, and by him
credited on the books of Corcoran q Riggs to
the several parties interested, as the committee
now proceed to explain.
In February, 1850, before the commissioners
had acted upon DIR. Gardeners claim, an appli-
cation was made to Mr.. Corcoran by Messrs.
Waddy Thompson and Robert G. Corwin, on
the part of DR.. Gardiner, proposing a sale of
one-fourth part of the said claim, for the alleged
purpose of raising money to enable the claim
ant to perfect his proofs in Mexico. Mr. Cor
corap declined the proposition, and refused to
become interested in the claim, for the reason
set forth in his disposition. Subsequently,
however, the purchase of one.fourth of the
claim was made by Messrs Thomas and Robert
G. Corwin, for which purpose they paid twenty
two thousand FIVE hundred dollars in cash.
Mr.. Corcoran having declined to make this pur
chase himself, nevertheless agreed to discount
the note of Robert G. and Thomas Corwin,
with l.. D. Campbell, d. Bruin, G. B. Smith,
and Moses Il. Corwin as sureties for the $751;
$50; and as the proceeds of this note were ap
piled to the purchase aforesaid, the assignment
of the fourth of the claim was made to said
Corcoran as collateral security for the payment
of the said note. Before the award OF the COM
missioners, and before Mr.. Thomas Corwin
was appointed Secretary of the Treasury, he
sold all his interest in claims before the com,
missionersy and out of the proceeds of this sale
the money advanced By Mr.. Corcoran was re-
paid, and the note for SIS, $50 fully discharged
At the time of the award, therefore, Mr.. W. w.
Coreoran, assignee Of onefourth the Gardiner
claim, stood in the position of a naked trustee,
holding the assignment for the benefit of
Robert G. Corwin and the purchaser of Thomas
Corwin's interest. Accordingly, when the
award for SLOT, 1877 so was made TO said Cor
coran as assignee, and the money paid out of
the treasury, it was Immediately put to the
credit OF Robert G.. Corwin on the books of
Corcoran & Riggs, and afterwards paid out
npon his checks.
The only part Of this transaction to which
the committee deem it necessary to call atten-
ton, is the fact, that the name of Caleb B.
Smith, one Of the board of commissioners sit
ting for the adjudication Of this claim, appears
as surety upon the note given to raise money
for the purchase of onefour.h of it. To the
extent Of his liability he directly interested
in his own decision, and certainly might have
been subjected to such temptation as q correct
Judge would always endeavor scrupulously to
avoid. The fact itself is not conclusive Of any
bad influence upon that member Of the com
mission, but it was certainly very indicate
and improper. and, in view Of the whole cir
cumstances of the case, will justify the severest
censure.
The remaining part Of the Gardiner award,
amounting to 1921 1862 so, was likewise paid
TO Mr.. Corcoran for the benefit of the parties
interested. II appears that at least some of
Gardeners counsel were unwilling TO trust the
fund in the hands of their client; and, accord
ingly it was arraigned that Mr.. Corcoran
should receive the money and pay it out upon
checks, some Of which were placed in his hands
prior to its receipt. This circumstance would
seem to indicate suspicion and distrust of DIR.
Gardiner on the part Of the gentlemen named i;
but whatever cloud it may throw over the mat
ter, it still does not go to the extent of proving
any actual knowledge of the fraud.
The whole sum paid into the hands Of Cor
coran 4 Riggs was distributed in the following
manner, TO wit:
To Robt. g. Corwin, assignment of
one fourth.-................... $l07, 1877 80
Edward Curtis, fees.......... 24,5S7 so
Waddy Thompson, 7" .......... 54,6S2 90
Robt. G. Corwin, /" ......... 36,68l %
The balance Of the award, being something
more than two hundred thousand dollars was
left TO the credit Of DIR. Gardiner himself; and
it appears that the whole Of this part Of the
fund, and indeed something more, is now in
the hands of Corcoran & Riggs, and the Life
and Trust Company Of New York, enjoined at
the suit Of the United States, and liable to be
recovered and restored to the treasury. The
excess Of these deposites over the amount left
10 Gardiner from his own claim is doubtless to
be accounted for by the fact that he received q
part Of the award made to John II. Mears.
OF the award made TO John II. Mears, il seems
that DR.. Gardiner received the sum
J. NJ Carlisle, assignee, received. 3S,2S1 90
Ferdinand de la Cuesta.. 2S,7ll 90
In considering the liability Of the various
parties receiving portions Of the award made
to DIR. Gardner, the committee are unani-
,,oneIv of. aninion that w w Corcoran and