The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-11-16

The Governments Search for the
Fruftx of Carriers Guilt.


/ An interesting personal narrative Of
the manner in which former Capt.
/ Cberlin NJ Carter's share Of the prof
/ its Of the conspiracy 10 detraUd the
I government has been recovered. and is
/ now IN the hands OF receivers. was
/ recently given out in Washington by
/ Marion Erwin, special assistant attor-
ney general. in charge OF the conduct
/ Of these cases.
/ Ar. Erwin gave an interview 20 =
I reporter OF the Washington Star, in
/ which. after some casual attention 70
! the report sent out from Chicago, TO
[ the effect that Carter was 10 be given
q new trial. he tells Of the manner in
/ which the funds were traced, and
| seized, and Of the total lack OF anna
bility displayed by Carter's relatives
in the matter. Mr.. Erwin said:
The facts in the case, briefly stated.
/ are these: We had already traced and
tied up in the hands OF receivers. on
| bills filed in New York, New Jersey,
Georgia and West Virginia, some $780,
I Go Of the investments. mainly unreg-
! istered railroad securities, into which
I Carter had diverted the funds intrust-
I ed 10 him as disbursing officer.
None Of this had been surrendered
/ voluntarily, and the means taken by
/ Carter and those associated with him
/ 70 secrete them, and the manner in
which we traced and caught these as
/ sets. would make Sherlock Holmes
I story, which some time in the future
4 our expert bank examiner, Mr.. Edward
l. Johnson, will have TO tell.
There were other of the assets, how
/ ever. still concealed, and some six
weeks ago We had traced the sale by
| Carriers uncle and brother, through
/ brokers in Chicago, Of over $4,000 Of
| the unregistered bonds Identified by
/ serial number, constituting a part Of
the diverted funds.
a bill was filed in the United States
/ Circuit Court at Chicago against o. VI.
! Carter. his uncle, L. D. Carter, and his
brother, I. Stanton Carter, and a re-
| ceIver was appointed by Judge Kohl
saat to make demand for and take pos
session Of the trust fund In response
to the demands Of the receiver, /. Stan
ton Carter and L. D. Carter denied
having possession Of any Of the fund
I then obtained a rule from the
court requiring them to turn over the
assets charged to be in their hands or
show cause, at q day fixed a month
ahead, why they should not be punish
ed for contempt Of court.
then came East and flied an
/ amendment making new parties de-
PENDANT to the bill pending in New
York An order was obtained from
Judg Lacombe extending the receiver
ship under this amendment AS a re-
suit Of this proceeding I obtained pos
session about three weeks ago from
man who had secretly acted as Carter
| agent in New York Of a receipt given
a year ago to him by L Stanton Car
ter for over $780, 600 worth Of the miss
ing identified securities We found
however that we had already CAPTURED
IN West Virginia the proceeds of $780,
600 OF the securities on this receipt, and
also about $50, 900 had already been tied
| up by our proceedings in Georgia. This
| left about $4,000 on that receipt still
| 10 be accounted for by the Carriers in
! Chicago Armed with that receipt and
ether pertinent evidence I returned %
| Chicago to press the rule for contempt.
In the meantime L. D. Carter and
| l. Stanton Carter had filed answers to
the rule, settling up that they were
not bound to disclose any assets TO
the receiver. as 1T might incrirninate
them, even II they had any. which they
| denied. We had a preliminary Skin
mish in court on the production Of GER
tain bank accounts, in which produced
and exhibited the original receipt and
original checks with the defendants in
dorsements upon them.
This was followed by a conference
Of counsel. which resulted in the sur
render by L D. and 1. S. Carter of S75,-
600 worth of the identified securities.
and an agreement under which they
are TO account forthwith for the bal
ance Of the assets traced into their
hands on the receipt and checks. and
are to make full disclaimer of any
interest in themselves in any of the
properties claimed by the government
in our bills. o. VI. Carter is to dis
miss his demurrers and exceptions and
file his answer to the bills promptly.
and the case is to be put at issue on
the merits.
The government has not agreed TO
dismiss the rule for contempt, but mere
Il given L. D. Carter and I. Stanton
Carter the opportunity to account out
OF court TO the receiver if they can:
and if they do so account that part OF
the proceeding will not be pressed.
SO far L. D. Carter and l. S. Car
ter have not turned over or satisfac-
torily accounted for at least $4,000 in
addition to that turned over Saturday
and unless they do so the contempt
proceedings VIII be vigorously pressed
as soon as get back to Chiago. I am
assured, however, that they will make
a clear showing in a few days.
The $4,000 secured on Saturday
brings up the amount of the diverted
funds traced and corraled to about
S425,000, every dollar of which was
traced only. by the exercise of great in
genuity and labor, and secured only
through the application Of the sum-
mary processes Of the courts.
There is absolutely no agreement "a
bring Carter out of the penitentiary OF
TO give him a new trial or any other
chance Of vindication than what he al
ready possessed. OF course. he has as
a matter of law the right 10 claim the
GJerty in controversy as his own and
to defend the claim, and incidentally
to try to disprove the charge that the
pI opeIty was obtained by defraudins
the government. But the proof Of the
fraud is a burden which the govern
ment cheerfully assumed in this case
when it filed these suits, and the re-
s1,tS 50 far have not been dispiriting.
1T has borne that burden success
fully twice already-once in the court
marital and once in the removal PRO.
ceecings against the contractors IN
New York.
The recent recovery of the diverted
funos in the actual possession of his
re, stives. holding the same for his &C
co ant, does not appear, at least to one
on the opposing side of the contro-
Versy. to present for him any marked