The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1878-05-27
COTTON sPECULATING.
A SuIt Growing OVt OF an Old Tran
acIinn of The War Time.

Suit Growing OVt OF an Old Trans
action of the War Time.
From the New York Herald.
An action that has been on trial in the
United States Circuit Court, before
Judge Shpman and a jury, for more than
a week past, was brought to a conclusion
Yesterday by q verdict for the plaintiff,
The suit was brought by the United
States against the defendants, John
O'Fallon and Eugene Kelly, to recover
100000, the estimated value o! 400 bales
of cotton, sold by the defendants. The
circumstances were detailed in the charge
of Judge ShIpman, who said that on the
26th OF April. 1865, Gen. Joseph Z. John
ston. then commanding the Confederate
forces Of the State OF Georgia and OF
ighborIng States, surrendered the troops
under his command, by written terms OF
cspltulstion to Gen. w. L. Sherman, OF
the United Ststes Army. This event
followed shortly Before the surrender Of
Gem. Lee to Gen. Grant at Appomsttox
Cont House and which resulted in vir-
tusl disarmament of the forces OF the
Confederate States east Of the Mississippi
and this was followed by the fight Of j eft
Davis and bis Cabinet from RichmoI d
and the dissolution of the Confederate
Government, The United States Gov.
ornment thus became without actual sell
zure the owner of all the public property
which At the time of Gen. Johnston.
surrender was owned by the Confederate
Government. The cotton that was then
| in possession of its officers, under the
claim of ownership, became the property
of the United States; any sale OF such
nubIic property by the officers OF the
| Con federate Government after the sur
! rander Of Gen. Johnston was violation
Of the law against the United States. In
pursuance Of this authority the United
! States Immediately commenced L take
1 into its own possession the property
which had been formerly owned by the
| Confederate Government, and which had
by fo.ce o. conques. b come the property
Of the United State; and following thi'
line of policy they found that General
Nolin.sux, who occupied Augusta on on
about MAY, 1865, placed guards around
the warehouse IN which cotton was stor-
ed in that city. Prior to that time negC-
ti,tions were commenced between tie
M babitants of the North and South IN
reference to the limitations and restrIc-
tions which were imposed by the Nation
a. Government; and on April "a, 1860, a
permit was granted by the President OF
The limited States to james O'Fallon, one
NJ the defendants, who traded IN the
nroduc,s of the United States under the
| limitations which were specified In a
written document, which is in evidence.
O,Fsnsn was not authorized TO purchase
cotton which st the time OF General John
toms surrender belonged to the Conied
erato Government, and which by the
force Of conquest had become the pro
nertv Of the United States. Mr.. OFsl-
ian, in May, 1865, and MIR. Kelly, aooth-
ar e the defendants, by virtue OF an
sgr.ement became partners in this enter
mise Mr.. Kelly advancing 100000 as
his share ofthe joint cspi.sl. Under this
partnership 4f9 bales Of cotton were
boucbt by aman named Schly of Lloyd
q Bowers, this cotton having been sold
n him by the Treasury Agents ofthe Con
federste Govern ment. This cotton was
subsequently, transported from Augusts