The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-05-18
THE COURTS.
Cotton Speculations at the
Close of the War.
AN IMPROBABLE VENTURE

Trusts for the Late Robert Winthrop
CHAMBERS Children. AN
An action that has been on trial In the United
States Circuit Court, before Judge Shipman and
jury, for more than . week past, was brought TO
conclusion yesterday BY verdict for the piantn.
The suit was brought by the United States against
the defendants, John O'Faian and Eugene Kelly TO
500 900 the estimated value Of 400 bales Of
cotton, sold by the defendants The circumstances
were detailed in the charge Of Judge shipman. who
said that Goth Of April. 1855. General Joseph
K. Johnston, then commanding the Confederate
forces Of the United States Of Georgia and
ne,ghboring states, surrendered tho troops
under hts command, by written terms OF
population General w. Sherman, OF the United
States Army. This event followed shortly before the
surrender OF General Lee General Grant At Apo
Court House and which resulted in virtual dis
OF the Of isderate States east
Of the Mississippi and this followed by the flight
oil JET Davis and bis Cabinet from Richmond anu tho
United States government became without actual
the owner OF all the public property winch ~
the tune Of General Johnston's surrender was owned
by the Confederate government The cotton that was
then IN tho possession OF It's ofhcers under inc
claim Of ownership, became the property OF
property BY tue onncefs OF the Confederate
govern after the surrender Of General Johnston
In pursuance OF this authority the United States inn
mediateiy commenced 10 take into It's own possession
the property which had been formerly Owned oy tns
conquest become the property Of the United states
and following this line OF policy they found that Gen.
Nav 1865. placed guards around lhe warehouse in
which cotton stored In ths. city. Prior 20 that
hgbilants Of North and South In reference 10 the
limitations and restrictions which were imposed
BY the national ana on Asr ,ha II nSoo
States 10 james OFaIlan one OF the Defendants VINO
traded in the products Vi the Unod states under the
limitations which specified In q written docu-
msnt whch is In evidence. O'Falan was not author.
ized purchase cotton which a. the time Of General
Johnston's surrender belonged TO the Confederate
government, and which by the force Of con-
quest had become the property Of tho
s Uu's NJ. Ksiiy smother Of tie aefsnasn.s ~
virtue agreement became partners IN this enter
prise, Mr. Kelly advancing 500 600 as ms share o.
the JOINT capital Under this partnership 469 bales oi
cotton were bought by man named Schiy Of Lloyd
g. Bowers this cotton having been sold 10 him by the
cotton subsequently, transported from Augusta 70
Savannah, thence TO New YORK. deposited with HAM
the procseds paid 10 Eugene Kelly 4 Co. and
by them 10 O'Falan Co. alter deducting the
expenses ana the proceeds divided between
ScnIy aud Bowers IN proportion OF threeeighths
10 tue former and nve-cighths 10 the latter. The
cotton the property OF The United States. and u It
was bought Of Bowers ny O'Falian & Co. became tho
properly Of O'F4lian upon It's purchase, the United
States the right 10 avail itself alter deducting the
proper expenses Of transportation, Of preparing the
cotton for market and OF sale, although they did not
know that IL was the properly OF the United states.
For Schly, being tho agent OF O'Falian Co., who
received IL their property and sold II, then they
arc liable TO the United States, although they
wore ignorant OF the true state OF the
paper contract between Schy and Bowers, no matter
whether schly CALEB him sell the agent Of O'Faan or
agency ut all, out tnat Schy and Bowers dealing
with zach other as principals and that schly was
making use Of tho perrin! merely as cover, without
the knowledge oil O'Failan, and that the real
transaction was between Schly tor himself and
Bowers Tor himself, aud that O'Fsiian Co.
wero simply the factors Of schIy and Bowers
IN ignorance that the cotton belonged to the govern
msnt Judge Sh,pman then proceeded to set forth
between principal and agent. and concluded
by rsciling the points which the plaintin rei,od
Tue jury ater short elaboration returned into court
with verdict for the piAin'in for seS'SSo with In
Assistant District Attorney Herrick and Mr.. E Q.
Ingsrsol appeared for the government and Mr. Ager-
non 3. sullivan Tor the defendants.
ROBERT w. CHAMBERS CHILDREN.
The late Mrs. Robert Winthrop Chanier before her
marriage with tho late William Il. Astor her
grandfather antenuptial trust oeed, and following
her marriage made another trust deed OF substantially
the samo character, giving $500, 900 TO tho same
trustees for tho benefit OF her children. She dicd
lett will under these trusts, and subsequently, her
husband died. The United States Trust Company was
general guardian OF the surviving Two children. A
testamsntary guardian was appointed by tho Surro-
gate, and now the trustees have brought = iriondy
SUIT the papers In which submitted yesterday to
Judge Van Brunt, holding supreme Court, Special
Term. The question 10 DO detcrmin ned 10 whether
the nj the death OF MRS. Cnaner owing
TO PROVISIONS not In accordance with the statute
against perpetuitieG Another question is, n the
trust Is not continued whether the money Is to
be handed over TO The United states Trust Company
rs general guardian OF the children There Is also 70
bs decided the question whether the testamen tary
guardian 10 entitled TO the property. Tho trustees
also have accounting had and 10 DO relieved
from further duty IN the premiseA MI. Samuel Ward
father Of Mrs Chanler, also wishes TO have deter.
mined whether under the will Of his daughter he 10
10 nave his annuity OF 81 900 from his daughters
iater aud also wnetnor he 10 still entitled "a
receive an additional annuity OF S1,050, given him
by his daughter, and winch Mr.. Cnanier up to his
death paid 70 MIN.
A TERRIBLE REVENGE.
negro named John Handy was tried yesterday
before Recorder HacKett, 10 Part 1 OF tue Court o
General Sessions, tue charge OF arson in tho nrs