New-York tribune., 1875-05-13
ARG UNENT or 4 GREAT SUIT.

THE CLAIM OF TWO BOSTON BANKS AGAINST TIE
GovERNMENT-IIIsTORY OF TIE LOANS MADE BY
j. F. HARTwELL TO EDWARD CLARK-HOw THE
MONEY WAS RECOVERED.
lrRoM REGULAR CORRESPONDENT OF THE TRIBUSEl
WASHINGTON, May S.-One of the most in
teresting and important cases. especially in its legal
resr.ngs that has boon tried before the United
t Court OF Claims, has just been closed 1t involves
the tue 10 900, in the SubTreasury at Boston.
the parties the suit being the Merchants National
Bank and tho State National Bank Of Boston against the
United States In March, 1867 Julius f. Hartwell was
the Teller and Dsbursing Clerk in the SubTreasry by
speclatlons he had become involved and in 1864 three
years previously, owed his brokers' Messrs Meen "ard
& Co, Sc, ,00O which he was unable to pay. EDWARD
Carter President Of National Bank at Newton near
Boston, and his position brought him into business rela
tionship with IIartweK, the Teller OF the sub
Treasury He was in the habit Of receiving from
Hartwel certain cOurteses, proper in their character
such as cashng coupons making exchanges giving cur
rency for gTeenbacks. &c. Subsequently lie became
member of the firm of Mellen, Ward & Co., and fire.
quently pressed Hartwell for the $4,000 due the firm
Gradually began say less about the debt and from
time TO time obtained loans from the SubTreasury
through Carter's giving ample security and paying
promptly in every according to promise, thus win
ming the confidence OF Hartwe to remarkable degree
Carter finally gave Hartwe receipt In full for the
$4,000 the latter owed Mcllcn, Ward Co. Carter ceased
borrow of Hartwell $4,000 and 100000 at time
without security At time he obtained 100000 He
was engaged at this time in cornerlng stock OF the
Copper Falls Mining Company, which he succeeded IN
running up from about 20 cents to 20 cents As OFTEN
happens such cases. tho crash came before he could
realize on his stock.
II was customary to have examination OF the Sub
Treasury every year. about the st of January An eX
animation was held at about that time in 1867, which
however, only formal in its character AT tins tlme
Carter had obtained in all the sum Of $940OOO from
Harlwell without dollar Of security: Iartwell how
officers, became greatly troubled in mind and con,
stany pressed Carter for payment and Garter promised
became desperate, and threatened To reveal tc Whoie
ransaction He told Carter ,hat IN MreI ,h nele wd
be counted and all the gold weighed and hat unless the
known and both of them would be sent TO the penltel
Cater asked HartwcIi II he could have the money
again in day or two in he paid him. and Iiartwe
answered that he could So Garter set 10 work to Obtain
to pay or it, and borrowing money on it, by having
his checks certified as g0d when ne d dla
9t h%ss hs which he keep
wien the money returned to him. and by other means
the entire amount of his indebtedness to Harwe on ac
CONN., of The Sub Treasury. This he paid ill., and thus
every dollar found in the SnbTrcasnry by the Gov
crnnent examiners. Uartwell, however, gave Carter
rcccint for the money and promised to give him gold
certificates for the amount when called for Hartwei
The Sub-Treaslry and revealed his transactions with
Carter. examination of the books was at once made
am every disr was found Iartwe had represented
day Carter returned to the SubTreasuIy SOUGHT
ont Hartwc and demanded the return OF the S34OOOO
in order that he might keep his promises to others
Hartwell referred tine matter to the Chef Clerk, ana
CaItcrs demand OF course refused HartwcIl
gave him receipt and the two stood against each other
Carter fled from the country. Hartwcll was sub
seGuently arrested tried convicted and sent to the
PcnitenaIy for i've years He was aferwafd pard0ned
in order to obtain his testimony. The banks now come
forward and demand that the $94OOOO be returned 10
them assert that the gold theirs that the money
was theirs that lost their title TO II that
il was taken them by fraud, and that justly be-
longs TO them this time. The cases were argued by
Assistant Attorney General GofOrth, Gnd r. ii. Dana, jr
i'm brhaf of The Government, and by Sydney Bartlett
and G. H. Goodrich in behalf Of the banks.