The times. [volume] (Washington [D.C.]) 1897-1901, 1900-07-10
TRIED TO PREVENT bids
Evidence of Fraud Accommodating
Against the Gaynors.
Government Puts other Contractors
on the stand I'm the Removal Pro-
cecdfngs-They Tell of Difficulties
Encountered in Obtaining Speci-
fcntions for the Work mt Savannah


In the Savannah Harbor fraud case VIII b
added through the proceedings for the re
moval Of Col. John F. Gaynor. E. H. Gay
nor. ". F. Gaynor, and Benjamin d
Greene from this State to Georgia, resume,
Friday and continued today before Unite,
States Commissioner Shields. The story O
the frauds is a long one. The conspirac.
was, in fact, one OF the biggest ever un
earthed In tho history OF public improve
ments in the country. Capt. oberlin NJ
Carter, U. S. A, was the engineer in charg
Of river and harbor improvements on tn,
eouth Atlantic Coast from 1891 to 1895
During this period extensive improvement.
were undertaken by the Government, large.
ly on the advice of Captain Carter him.
self, in the Savannah, Brunswick, and
other Southern harbors
One firm of contractors obtained most oil
the contracts for the work during these
years That firm was the Atlantic Con-
Rtructing Company, of which Col. John r
Gaynor was president. and Of which .she
ether Gaynors and Greene were active
members. In 1896 Captain Carter was
transferred to the Nicaragua Canal Com
mission, and 1t was then discovered that
there were irregularities under his admin
istration which pointed to extensive frauds
in his department. Investigation was fol-
lowed by his conviction by court martial
and subsequent Incarceration in the mill
fary prison at Fort Leaveaworth, Kan,
where he is at present serving out his sem
tence.
AS further result of the investigation a
Federal grand Jury for the Southern Dis
trict of Georgia in December last found
indictments against Greene and the Cay
nors for alleged conspiracy with Carter to
defraud the Government. Proceedings
looking toward the removal of the indicted
persons from the jurisdiction of the United
States District Court for the Southern Dis
trict of New York to that of Georgia were
begun in January before Commissioner
Shields. In these proceedings the Govern
ment introduced no evidence except the
indictments. Judge Addison Brown, fol-
lowing the precedent laid down by him in
the Dana case decided that the mere pre-
sentation of the indictments was not
enough and that writ Of removal could
not be granted except on evidence tending
TO show ground for the indictments. Ten
days ago Judge Brown, in formally deny
ing the application for O writ of removal,
set day for the taking of such additional
testimony before the Commissioner as
either side should see fit to present.
The first witness called by the Govern
ment when the examination was resumed
was Charles p. Goodyear, contractor en-
gagged in deepening the harbor al Bruins
Nwrs~ 20 a4I tIos
had been made TO him by Carter and the
Gaynors to get him to use his influence to
obtain an appropriation Of 81 rs 900 for the
Brunswick harbor. The profits, which were
estimated at $4,000, were to be divided
into three parts, of which Goodyear said
he was to have one part. Carter assured
Goodyear, the witness said, that IL the ap-
preparation was granted the Atlantic Con-
structing Company would get the contract,
and would live up TO the agreement made.
Mr.. Goodyear said he did not like the look
Of the business and refused 10 have any
thing TO do with it.
William H. Venoble. granite contractor
Of Atlanta. testified to the difficulty he
experienced in getting specifications from
Carter. and said that he had been ap-
proached by the Gaynors to buy him on
Mr. Venoble was on the stand during most
Of Saturday mornings session and told
of an understanding which ne said had
been. reached between the Atlantic Con-
tracing Company and himself by which he
was to furnish a certain amount of stone
TO the company. contract was signed
by which Venoble was to furnish $50, 900
tons of stone. Only 1000 tons were called
FOR the witness said and he became con-
WINGED that he was being turned down and
vert around to see Carter about It. Car
ter, the witness said, referred him to
Greene, who, according to the witness.
said that they would use as much of his
stone as possible, but that the specifica-
tons had been changed SO as to rall for
the substitution of mattresses instead of
solid stone in most cases.
Mr.. Venobie also told about the different 1
sort of mattresses required and the diff I
Guilty of bidding upon them without a
of the kind TO be used. The
Atlantic Constructing Company had inside
on this point, the witness said, 1
and could underbid everyone else in ccn-
Ieouence.
The hearing was continued this morning
II II o'clock. The first witness called was
Thomas ]. Agnew, a contractor of Sayan-
aah He said he had difficulty in 1894 in
obtaining from Carter copies of the speci-
lcations for the work on Cumberland
sound Upon falling TO get copies he APP
,lied, ne said, for them through his family
physician but the attempt was also I'M
He said that he then wrote
etter OF protest to Carter, after which the
pecihcations were sent him On the day
et for the opening of the bids for the
Sound work. September 29,
se4 the witness said he went around to
,arter's Office for the purpose of leaving
he bid of Ross & Co.. with whom he was
hen associated. In the outer office he
aid he was approached by T. IL Gaynor,
yho asked him II he had come to bid on
he work. Upon his replying In the at
rmative Gaynor, according to the wit
ess. urged him to refrain from bidding,
nd finally offered him $500 cash if he
'ould do So Col John f. Gaynor the
fitness testified, Joined in the conversa-
lon and renewed the offer made by his
rother.
Mr.. Agnew testified that after ii became
eident that there was TO be coupstit on
i the bidding r. II. Gaynor stepped up to ,
'arter's desk where two sealed bids re
lready deposited and replaced one OF
hem by another which he had with hir.
ir. Agncw said that he deposited his bid |
We minutes before the noon hour At that
me Carter opened the bids and il WIS
,und. the witness said, that the lowest !
as that of Bangs e. Co, who proposed to I
0 the work for $4,000. 4
1t was sought by the testimony TO e. II
iblish the connection of the defendants. :
reene and the Gaynors. with the firm OF [
angs & Co. After cross examination by c
r. Kellogg tue witness was excused +
j. ". o. Sterley. former chief clerk In r
le office of Carter. identified numerous 4
tiers. various specimens OF handwriting C
d big pile of ietter-press books.
= If you want to h