The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-17
SOUTHERN DEBTS AND DEBTORS.
Are Payments OF S0rthern Debts iss Com
federntc Bonds Worthlcss-The Law Of
Principal and Agent.
N"h SVuhr Sh n HDEnS.
Before Judge Tngraham.

SUPREME c0URT-CHAHBERS.
Before Judge Ingraham.
curious case, involving very interesting point OF
law came up in the Supreme Court yesterday afternoon
before Judge ngraham sitting Chambers. The qgcs-
on, stated in very few words simply the right OF
collecting agent of New York house, who sent TO
Texas before the rebellion and continued to that
capacity until after the secession os that State invest
tho money Of his principals m Confederate bonds and
other Southern property for the alleged protection
employers. The plaintiffs Leroy NJ Wiley and Fred
crick Lawrence assgnees Of the firm Of Lanes Royce
Co, formerly large dry goods merchants in
Broadway, said 10 have been worth over three
million dollars The defendant young Southern gen
teman, named George W Gooch, for many years resi-.
IL would appear that in February, 1901 Mr Gooch
clerk and collecting agent the employment Of
Lanes BOycs 4 Co, and was despatched to Texas by
that arm for the purpose of collecting for them the
OF one hundred and seventy thousand dollars due
by merchants establshed in Houston and other parts
that State On the 4t Of March, 1861, te day Of the
first Inauguration of President Lincoln Messss Lanes
Boyce Co made an assignment Of their business TO
Messrs Wiley Lawrence aud after .nis according
to the plaintiffs, Mr. Gooch, who had commenced
collecting operations IN May, received orders TO
turn over all the assets in his hands 10
agent located Houston, Texas AIR Gooch obey ed this
order but subsequently, as alleged by the plaintiffs took
own use without proper ntaorzauon from the assig
nees This is the PLAINTIFF side Of the story On the
IA Qe.
what different way: BE says that arriving Texas
lac commenced collecting and sent some fourteen thou
sand dollars IN gold to the assgnees in New York After
thu commencement OF the rebellion he received the
order TO turn ocer the assets to Mr Butler which he
did, and was only induced 70 resume the posses
Collins, ths principal clerk and managing AGENT
OF Butlsr, in consequence Of camr being
raised against the latter 10 the effect that
he |as dsloyal 10 the cause Of the South, he having
gone North and remained there during the rebellion.
The excitement against him ran 10 high that was pro
Gooch says that he uced for the best interests Of the
assgnces He accepted the offer TO receive back tho
assets, and resumed the work Of collecting taking pay
ment in Texas lands Confederate bonds goods u South
ern merchants negroes, and other kinds Of properly.
About 800 900 invested thus in Confederate bonds
Mr. G00ch believing that the Of the South would
ultimately triumph and that thus the assignees would
be duly protected by making such investments In these
proceedings Mr. Gooch claims that he was backed
by Mr. Wiley the active assignee of the firm,
who IL seems, quilted New York at early stage ofthe
rebellion went to Charleston, South Carolina and thence
communicated time sfler time with the defendant, OF
whose aclion he Is charged with being FULLY cognzan
Mr. Wiley seventy three years OF age and owned
two plantations in Alabama and one % Georgia Three
Of the partners Of the Arm OF Lanes Boyce Co. were
also strongly Southern in feeling. and went southwark
70 unite their fortunes with that Of the armed opposers
Of tho Union. Mr. jesse Lane served rs private IN the
Southern army during the whole rebellion, and Mr.
Gooci himself was conscrpied and compelled TO nsht
for tho OF jon Davis Thus all the parties except
perhaps Butler secession synpathzer-.
In September las, Mr. Goocb arrived ths city, and
shortly after arrested on petition Of the plaintiffs
graham, of the Supreme Court He lodged IN Jail IN
default OF twenty five tho sand dollars bal demanded by
Judge Ingrahsm.
The up yesterday a motion by Mr. u
Dodge, defendants counsel 70 discharge the order OF
arrest
Mr. Dodge read a number of lengthy afdavits en-
bodying the above stated and also esfying TO the
good character and probty of Ill client. His principal
Agum at was, that payment Of debt in Confederate
money was point Of law payment at ALL and that
therefore Mr. Gooch had not been guilty OF any wrongful
receiving Confederate money the debts due Ia
ths Arm ~ A.
intact undiachargcd and could be legally enforced by
the assignecs ON the other hand, II The plaintiffs
claimed that his client had collected The debts, then the
fact that he had oefsd 10 the money IN hs
hands To the Assgnees sufficient snswcr TO their
compliant
Nh Larvque for The plaintiffs, argued that the action
Of Mr. Gooch very suspicious Ia his bill OF psrcu-
lars there app AIRED dates names and one hundres
thousand dollars disposed Of with the stroke OF
A. regards the Investment ~ Confederate bonds, he
spoke In dersive terms, stating that did not APP
pear what the defendant had paid for them when he
had bought them. The defendant might have bought
them when tbey utterly worthless.
Judge Tnsaiein took the papers aud reserved h- de.
ri-iOn