New-York tribune., 1874-10-29
THE COURTS.
pEFAuLTER,s BROKERS SUED.


In the case of the United States against Pol
hemus jackson, action brought to re ser about
under the following alleged circumstances: Army
Paymaster ]. L. Hodge, who convicted OF and par
doned defraung the kept his accounts
with Polhemus & Jackson who were then doing business
brokers In this city During his transactions with the
brokers' Hodge sent them about $500 900. which they
knowing 1t to be money belonging TO the Government
used and their specuatons for Hodge The
case for trial yesterday 10 the United States
Circuit Court before Judge shpman and jury consist
ing Of NJ X. Jessup, Thomas ChattertOn, d. C. Murray
Andrew Scamoni T. II. sayre, Philip seigman, John
Haviland. j. Nj. Oakley, James b. Cone. William Nc
Bride. G. A. Remington, and s. A. Wood
In his brief remarks to the jury Assistant United
States DstrictAttorney Tremain. who conducted the
case for the Government said that II it should appear
from the evidence that Pohenlus Jackson knew that
the money referred belonged to the Government and
that they then used It for the purpose of specuang in
stocks, the Jury could not escape finding verdict for
the Government "The flrm," said Mr.. Tremain. held
the money merely trustees. and the trust was vio
lated tie firm is liable. Action In this case Is not
brought under statute but founded upon broad
principles of law-principles which have been recog
nized for centuries and which must prevail as long as
sound law is impartally administered" At the close Of
his remarks Mr.. Treman offered to prove by John X.
stinson formerly clerk In Adams Express Office that
Polhemus Jackson had received from Hodge the
money in question, and Gen. Roger A. Pryor. counsel
for the defendants said that for the purpose Of short
enng the trial. he would admit the sending aud receiv-
ing OF the money charged. The admission however,
did not carry with It the acknowledgment that the
defendants that the money belonged to the Gov
ernment.
Ex.Paymaster Hodge was then called to the stand,
and the following the substance of his testimony
When paymaster in the army had for disburse
ment money belonging to the United States;
4. In hia Nv and
some with Pohemus Il jackson; 1 kept an account
withAhem, and remtted to them from time to time;
some of the remttances In exchange.drafts and
some Treasury notes (he witnesses checks, ndorsed
by Pohemus Jackson. were identified and put in evil
dence and Mr.. Tremane stated that Hodges transac-
ons with the defendants began In December. 1862 and
ended the Fail of 1s7; the money RENTED by me to
Polhemus Jackson might have amounted to $o5o,ooo
but Lam not the amount; they had no claim
upon the Government funds sent by me; they never
made any claim upon them and the was not sent
IN discharge OF any claim against the Governments Pol
hemus & jackson speculated with the money on my
account.
This closed the direct examination OF the Witness and
Gen. Pryor began the examination By asking him
II he had received any property from his father. Mr
Treman objected the ground Of immaterality Judge
shipman allowed the question and remarked: Suppose
that Mr. Hodge was wealthy, and that the defendants
know IT, would not that raise presumption that they
thought they were using Hodges own money! The
witness answered that he had received no property
from his father, except some bank stock
@. Was your father o wealthy man A. He was
man OF meaus but rich as he was reputed to be.
This ended the crossexamnatiOn and brief redirect
examination developed nothing Major w. T. Kent
chief bookkeeper In the Paymaster Generals office at
Washington, testified to the effect that P0hemus &
Jackson had received about 100000 from Hodge, and
that they had paid the Government about 100000 on
Hodges account. Hodges was then recalled, and no
testified in 1865 the defendant Jackson asked him
where paymasers kept their accounts, and how much
money generally bad on hand that he told Jackson
that paymasers usually Kept thef sd ons
on deposit. He also stated that he had never told the
defendants that the money he sent them belonged 10
Mr. Tremain then rested his case The main point in
ts The checks or drafts which have been referrea TO-
those of special dsbursing officer OF the
as s as
tue GGysrnment and that they had no r'sn' to use "
In his opening address to the jury Gen. Pryor referred
to the high standing and character long had" by
did not know the money they were using Hodge be-
longed to the Government, 1T was not" !"
suggestion that it was Governments. property.
hut It was received under the impression and belief
that it belonged Hodge, and to hodge alone. Such
being the case as intend to show the Jury must find
verdict for the defendants" Referring to the indict
ment which was found against Polhemus and Jackson
for con spring with Hodge defraud the Government
Gen PRYOR said: Satisfied that the firm was guilty Of
no criminal act intent, the Government ordered
noe prosequ to be entered aud it is surprising
that order has not been received to stop further
this for the reason that there Is
nothing TO show that the defendants knew they
using Governments money in their speculatons on
Hodges account
Mr Polhemus, one Of the defendants, was tho first
witness for the defense. He testified as follows:
account with my nrm be told the from
which he drew the forwarded to us believed
that the money belonged to Hodge alone and there
no secrecy In office concerning his account long
elected nothing except that Mr.
jackson introduced Hodge to the witness aud told him
fhat he wanted to open account with the firm; that
he did not Hodge where he yed that he found out
in few DAYS that he was an army paymaser anu that
Mr. ~ Jackson the other defendant testified: Major
Pauiding of Washington introduced Mr. Hodge to me
by letter. and said that he desired to open account
vim us his account with us closed In September or Oc
tober ISL our firm had no interest the transactions
for Hodge except the regular commissions we received
in oa sSd a Saa GOOD ns
10 speculate with the Government funds In his hands
knew or suspected that Major H9dge was using
that he had large means and that he could control
great deal Of money; also supposed SEQ that bis father
m our office concerning transactions for Hodge;
when he sent US snb-Treasury check 1t was always
was sent and when the checks were cashed did not
know that the money belonged to the Goyernment and
when he remitted In Treasury notes had no idea that
tions with Hodge deposited to the credit Of the Gov
denost were put in evidence and the witness continued
When Major Hodge informed US Of his Sefaleaton we
had sustained toward Hodge; our hrm failed in the
psDic last September.
ferred TO- and the Court adjourned till ~ to-day
During the examination Of Mr. Jackson it Incidentally
fve years, and that 1t Of,en drew on its bank for
$3,0O0,OOO IN DAY. 10
THE HARDIN ESTATE CASE.
f,rr YrCr EFT,