The New York herald., 1874-10-29
THE pEFALcATION OF PAYMASTEI
HODGE.

HODGE.
In the United States Circuit Court yesterday, be
lore Judge Nathaniei Shipman and jury, an TN
portant suit, involving $500 000 was brought on for
trial It's the suit OF The United states Messrs.
Poihamius Jackson, who had been stock
brokers IN this city. The leading facts OF the ht-
CATION appear TO be these:-Mr. J. L. Hodge had
been paymaster in the army. He was convicted
OF defrauding the government out OF large
amount OF money, but was subsequently par
doDed he kept an account with Polhamius
Jackson. In the course Of his business relations
with that firm Mr.. Hodge sent them $500, 900, ana
1t Is alleged that they knew tha: this money be-
aonged to the government. This money was en-
ployed in stock specuations. made for Mr..
Hodge, and 1t seems that 1T was all lost IN such
speculations.
The following gentlemen compose the jury who
were sworn TO try the case m. K. Jesup, Francis
Chittenden. D. c. Murray, Andrew Scamoni T. H.
Sayre, Philip Selgman. John Haviland, J. M.
Oakeley. James G. Cone, William Mcbride. G. A.
Bennington, S. A. Wood.
MI Tremain and Mr.. sherman, United States
Assistant District Attorneys, appeared to conduct
the case on behalf OF the government, and Cen
eral Roger A. Pryor was counsel for the defend
ants
Mr.. Tremsin opened the case for the govern
ment. After briefly dllatlng upon the Importance
OF the suit and the great interest involved, be
sald there was doubt whatever that II 1t
could be established to the satisfaction OF
she jury by the evidence ne should adduce
shat Polhamius b Jackson were aware
the money, regarding which this litigation
mad been commenced, was the property OF the
government and had been employed to conduct
she specuatons referred to, 1t would, un-
d0ubtedly, be their duty to ind verdict Tor the
government. The defendants had been intrusted
Win the money merely In the character Of trus-
Iees and II they were guilty OF violation OF that
trust they must be held responsible Tor such viola
The government then offered to establish In evil
dence by the testimony OF John K. Styison, for
;taat the deendants nad received the money IRON
Mr. Hodge, but counsel for defendant, expressing
his desire to shorten the trial, observed that he
was willing TO make the admission tnat the money
was sent and received.
; Mr.. J. l. Hodge was then called 10 the stand as
o Witness Having been sworn, he said:- IL was
paymaster in the army had the disbursement
or money belonging TO the government; depos.
fhis CITY and also deposited some with Messrs.
Polnam.us Jackson, with whom kept an ac-
count from time TO time made remittances to
their nrm; exchange drafts composed some or
these remlttances and some were In Treasury
notes. Cheeks produced, indorsed by defend
rTne government claim that the transactions OF
Mr. Hodge with The defendants occurred In 1865
and closed IN 1871, in the fall.
Mr.. Hodae went ON iurtner to say. tn money
remitted Dy me to Polhamius Jackson might
have reached the sum of $780, 900, but cannot say
the exact amount; they had no claim upon the
government funds used by me; they never had
any claim upon them; the money was not re-
mitted to nquiiate any demand against the
Cross-examined-Did you receive any property
Mr.. Tremaine-I object. The question is i'm
material
Polnamius Jackson we're under the impression
and acted under the belief that Major Hodge was
q wealthy man they might have supposed he was
making use OF his own means In making these
specuatfOns
Witness-T received no money from my father
but some bank stock; my fatner was q man OF
means put he was not SO wealthy as had been
supposed .,,.,
bookkeeper in the Paymaster Generals office. he
testified TO the effect that Polhamius Jackson
through Major Hodge He could not recall II any
thing was said by MI. Jackson IN respect to COM
missions or interest accruing TO Major Hodge.
Major Hodge was recalled and Mr.. Tremain put
a question TO him TO this ct:-Counsei asked
you question on crosse xaminatlon II you ever
Informed Mr.. Jackson tnat the money you were
Iemitting TO him was government money, and you
said you never told him so now, | ask you
whether there was any interview between Mr..
Jackson and yourself when Mr.. Jackson said any
thing about government money In your hands,
and the disposition and use OF II. and II So what
Mr.. Hodge-In 1864 or 1865 Mr.. Jackson was in
Washington, and was inquring about various
matters; think had only a small account with
him then he asked how much money the pay.
they kept those Deposits said they kept the IN
IN various banks and having asked me how much
laughed, and said several oficers made money in
tnat way; said did not care about doing IT !;
This was In 1884 or 1855 my impression is that u
made proposal 10 me to take charge OF ma
riona bank in washington II he couid get char.
The evidence for the government here rested.
and General Pryor proceeded 10 address the Jury for
the defence, claiming that there evidence
Whatever to show that the defendants knew that
the money invested oy Mr.. Hodge belonged TO the
governments Mr. Hodge had received from the
Defendants thousands OF dollars the proceeds OF
the stock transactlons.
Mr.. Polnamius, one OF the defendants, was then
called TO the stand. He testified that Mr.. Hodge
had opened an account with them; did not know
him before that; saw MT Hodge several times
2. Dio he ever say anything to you about TINS
being government money!
establisned by proving negative.
General Pryor-rhe question is az to the belief
o. tne defendants; their impression as TO whose
money = was anything tending 10 show this Is
admissible.
Mr.. Treman-wc must have afnrmative evi.
dence OF what aid transpre
Judge snipman-l allow the question.
A. NO, sir ne never said anything ABOUT IT,
believed it was Mr. Hodge's; there was no secrecy
In our ONCE about II; kilograms and letters were
20 this money from the oiice OF the Paymaster
General in ashington.
On cross-examlnaton witness said ne han never
made any inquiry OF Major Hodge az 10 wnere the
money ne had deposited with Po.aamius lack.
son had come from.
In reply to General Pryor witness said h. had m
occasion TO make sucn inquiry; he never had a
Suspicion that the money do not belong TO Major
Hodge.
Mr. Jack son, also q member OF the nrm OF pol
hamius A Jackson, was examined, aud In the
course OF his testimony certain questions arose
which called forth from the Judge an expression
10 che enect that n there was anything to show
that the defendants knew the money be.
lnnged TO the government and that they were
using IL in stock specuations with Mr.. Hodge,
that would throw considerable light on the trans
action. the only interest said the witness, that