The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-07-31
O.M.CARTER'S SPOILS
MARION ERWIN GOES AFTER SOME
OF THEM.
MOVE TO RECOVER.
NEW YORK AND NEW JERSEY
PROPERTIES ATTACHED.

IL Is Charged That These Properties
Were Purchased by Carter with
Funds Entrusted TO Him as Dis
bursting officer and FrauduIentIy
Converted 10 His own Use-Now
stand in the Names of His Uncle
Lorenzo VI Carter, and His Broth
er, I. stanton Carter--A Temporary
Receiver Appointed.
New York, July SO.-The first step
by the government looking to the re-
covery of a part of the $2,250. 900, al
legged TO have been embezzled by Ober-
lin NJ. Carter, late captain of engin-
eers, now serving sentence at Leav-
enworth, Kan. while supervising gov
ernment work in the harbor at Savan-
nah, was taken to-day. when Marion
Erwin of Georgia, special assistant at
torney general of the United States.
filed bills in the United States Court of
the southern district of New York, and
in the district of New Jersey against
O. NJ. Carter and Lorenzo NJ. Carter,
his uncle Under these bills tempo
rary receiver was appointed for prop
critics, in New York and New Jersey. 1.
Stanton Carter. brother-of o. M. Car
ter. is also made a party to the bill.
The bin seeks a decree declaring that
certain property held in New York by
defendants was purchased with the
funds intrusted TO Capt. Carter as a
disbursng officer, and by him through
conspiracy with the contractors fraud
ulently converted to his own use The
property, II is charged. is now being
held in the name of Carter's uncle and
brother for his benefit while he is serv-
ing out his sentence In the penitentiary
under conviction for the fraud. Under
the bill Judge Thomas, presiding I'm the
United States Circuit Court here, pass
ed an order for service by publication
on the nonresident defendants for
appearance on Sept. 10, 1901, and Frank
w. Hubby was appointed temporary
receiver for the Eighth avenue proper
ty not disturbing the tenants therein,
until the nonresident parties can be
heard from. A similar order was made
by Judge Kirkpatrick, appointing Mr.
Hubby temporary receiver in the New
Jersey district with like powers as to
the Orange, n. J property.
The Division of the Profits.
The bill. which is voluminous one,
reviews the whole case. brought out at
the trial at which conspiracy between
Carter, Greene and the Gaynors. look
ing to the defrauding of the govern
ment is alleged. The bill described the
alleged divisions of Illegal profits of
the contracts month by month, between
Carter and the contractors for five
years, o. NJ. Carter Benjamin d.
Greene and John #. Gaynor each get
ting a third at every division until
Carter's one-third amounted to $722,-
52S.02. II describes the investments
which Carter made from time to time
with his share OF the profits and shows
that some sil4, ,437 so of the securities
traced up to that time disappeared az
the time of the instituting Of the court
martial proceeding in the fall OF 1897
1t traces certain of the trust funds into
the purchase by o. M. Carter of about
$4,000 of improved real estate on
Eighth avenue. New York. About &c.,
900. 1t Is charged, was invested In a
loan to Belrne Gordon of Savannah,
secured by a policy OF insurance.
1t traces certain of the trust funds
into the purchase of o. M Carter OF
about 100000 of improved real estate
In Orange, N. j.
IL alleges that at the time o. M.
Carter was sent to prison he gave his
brother, /. Stanton Carter, IA power of
attorney to dispose of any of
his property and this brother
and the uncle. Lorenzo G. Carter both
of the state of Illinois, joined the con-
spiracy, and agreed with %. NJ Car
ter to hold and conceal the embezzled
funds. IL alleges conveyances Of the
Eighth avenue property and the
Orange, N. j., property % I. Stanton
Carter and Lorenzo G. Carter, who. II
Is charged, held the same for the said
o. NJ. Carter.