The Savannah morning news. (Savannah, Ga.) 1900-current, 1900-07-21
GALLAGHER ON STAND
rEsTIFIED AGAINST GREENE
AND THE GAYNORS.
hDsTIN'S NAME BROUGHT IN,
,,,RGE MADE By DISTRICT At
TORNEY MARION ERWIN.

.uered That Claims Were Made for
s,oo 900 where the Actual Work
cost only S75,OOO-Sterly Also on
.,e stand-Carter's Checks on the
s,h-treasury in New York and His
generous Bond transactions.
~ York July 2O.-The hearing in the
..ss of the Gaynors and B. d. Greene
,ookng toward their removal to Georgia
,or trial for alleged conspiracy with for
,sr Capt. O. NJ. Carter, in connection
nth savannah harbor frauds, was con-
.t,ued to-day before United States Com
missioner Shields.
lanes l.. Gallagher, former paymaster
ond bookkeeper of the Atlantic Contract
ing Company. was the first witness.
United States District Attorney Erwin
Of Georgia. acting for the government in
me hearing, said before the witness was
called that he would attempt to show by
nm that claims were made upon the gov
.rnment for over $500 900 in certain cases
where the actual cost was only about 49,,
O00
exrenditures which passed through his
HANDS. He said that when he first went to
work for The Atlantic Contracting Com
pany in 1892, Ed. H. GaYnor was in charge
Of the work being done and John F. Gay
nor was in charge of the office. The ac-
count of the Atlantic Company. the wit
ness said, was kept most of the time in
the Southern Bank of Georgia. Mr.. Erwin
then asked the witnes what was the to-
tai amount expended on certain Savan-
nah harbor contract.
Mr. Kellogg objected, and it was decid-
ed that the books showing the figures
must be brought into court.
Capt. Austin Brought in.
Gallagher said in answer to Mr., Erwin
that w. G. Austin was Inspector for the
government in 1898. He saw Austin in
1893, in the office Of the Atlantic Contract
ing Company in Savannah. He said shsre
some questions of money due Austin by
the company This he gathered from a
conversation between Austin and E. H.
Gaynor.
A letter written by Austin to Garter
applying for the position of government
inspector of engineering work, was in
PRODUCED some days ago. He was ap-
pointed by Garter on recommendation of
Benjamin d. Greene
District Attorney Erwin said he wanted
il brought out that Austin was appointed
a government Inspector on Greene's rec
concentration to inspect and pass upon
work which Greene was interested in and
received compensation both from the gov
arprnapt ap6 tho c0uon many whose work he
inspected.
The defense attempted to show that Gal
lagher had been promised and given a
government position on the understanding
that he would become witness for the
government. This Gallagher denied.
j. W 0. Sterley chief clerk in the en-
gineer's office at Savannah was then call
ed He swore to the authenticity of sew
eral vouchers which Were put in evidence
Capt. Carter's Checks.
Francis Kaine chief clerk of the check
pay division of the sub-treasury of New
York, the next witness, showed list OF
checks drawn on the sub-treasury by for
mer Capt. Carter TO the Atlantic Contract
ing Company. These were put in evidence
and also a list of the original special
checks drawn by Capt. Carter in favor of
the Atlantic Contra citing Company ex-
tending ffeHa 1892 to 1897. All these were
taken from the vaults of the suo-treas-
ury. Mr.. Kaine testified that there were
also in the sub-treasury other disbursing
checks drawn by Capt Carter for sala-
ries. These were not brought to the hear
ing and are Mr.. Kaines personal charge,
as are those placed in evidence.
Cartcr's stock Transa ctiOns.
c. II. Van Deventer, member OF the
New York Stock Exchange and a broker,
testified that he knew Capt. Carter and
had stock transactions with him. large
sheet, a copy of the transactions with
Capt Carter, and the original books were
in court and shown. Mr.. Van Deventer
said Capt. Garter paid all transactions by
checks, The list included all purchases
OF bonds for Capt. Garter and what was
done with them; also including the prices
for buying and selling. The list was nearly
all bonds. generally in lots of nearly $500.
The list consisted of nearly 100 transac-
tons, the first transaction being on Jan. 8,
1881, and they followed on an average OF
three times month for several years. 1t
was brought out by checks shown that
much Of the specializing was carried on IN
Mr. Westcott's name. Mr.. Erwin said he
intended TO show that a check for $l4. 800,
signed by RI F. Westcott," was one
'hlrd of an amount taken Illegally from
the United States government and repre-
scented Capt. Carter's share in the trans
a.lion. The other two-thirds, he said,
were divided between the defendants. The