The Savannah morning news., 1901-08-06
WANTCARTE
SPECIAL ASSISTANT ATTORNEY
GENERAL ERWIN's BILL FOR
A RECEIVER.
SAVANNAH PARTIES INVOLVED.
THEY ARE MADE PARTIES DE-
PENDANT IN THE BILL.

the Conspiracy Rehenrseu anu tie
Manner in which the StealaSe
Was Covered Up Outlined-West-
colts Name Merely Used as Blind
md Carriers Investments in SnVan-
nah a Part of Illicit Gnins-Evcn
His Attorneys Fees Sought to BE
Recovered.
bill in equity for the appointment
of a temporary receiver for all the
properties held or alleged to be held
in the name of Oberlin M. Carter, for
mer captain of engineers in charge of
improvements in this district, and all
moneys due him or alleged to be due
him, within the jurisdiction of the
court, was filed in the United States
Circuit Court here yesterday.
The bill was prepared by Marion" Err
win, district attorney and special as
sistant attorney general of the United
States for this case, and is directed
against O. M. Carter and his associates,
B. D. Greene, John F.. Gaynor, E. II.
Gaynor, w. r. Gaynor and Michael A.
Connolly. The bill is also directed
against Col Beirne Gordon, the Pro-
peller Towboat Company, Nessrs. w.
w. Mackall, ]. Randolph Anderson, the
Savannah Lighterage and Transfer
Company (the bill has it the Savannah
Iighterage and Trust Company, the
Savannah Brewing Company, and the
Brush Electric Light and Power Com
pany from disposing of any securities
they may hold in the name of o. M.
Carter. or of his brothers, Lorenzo d.
and /. Stanton Carter.
This is where the local interest comes
in as all the parties and corporations
mentioned are we'll known locally and
in the best of standing. The bill is
similar in character to one very recent
ly filed in one of the circuit courts of
New York and upon which a temper
airy received was appointed, all of
which was announced in the Morning
News at the time. 1t is a very Volum-
inous document, being printed
pamphlet of 81 pages, with considerable
manuscript interlineation and adj
ditions and is in fact probably the
most complete and compact history of
the Carter case and the Savannah har-
Dor conspiracy that has ever been pre-
pared. Much of the information con-
tanned in this large document has al
ready been given to the public through
the columns of the Morning News,
some of it many times over, and 1t
would be needless to repeat ii. 1t is
complete resume of Carriers conduct at
Savannah and reveals the progress of
the conspiracy from its inception to
what might be called its successful
conclusion.
The Savannah parties mentioned are
brought into the case because of the
alleged investment by Carter, through
his father-in-ilaw, the late Mr.. West
colt, of a large amount of his i'll gotten
gains in Savannah, in the stocks of To-
cal companies and in notes and mort
cages.
1t will be the task of the government
to prove that these investments. made
through Mr.. Westcott, were part of the
ill-gotten gains obtained by Capt. Car
ter as his share of the profits of the
conspiracy, and as such subject to the
governments claim.
The Case Divided Up.
The bill is systematically arranged
under a number of heads. The first
section recites Carriers duties and pow
ers as engineer officer at Savannah. The
second relates the scheme devised to
defraud by means of artfully worded
advertisements, specifications and re-
QuirementS of contractors, all of which
has been fully described on former oc-
casions. The third relates how the
scheme was put into operation, the
fourth gives a description of the en-
gineering work, and the fifth gives the
details of fraud as introduced into and
under the contract. The sixth explains
the method of dividing the profits,
Carter, b. ID. Greene and John f. Gay
nor each taking one-third after the
necessary expenses had been paid and
certain interested minor parties had re-
ceived their shares.
The manner in which Carter disposed
of a portion of his illegal profits is then
described at length, the purchase of
property at Organe, N. j., and on
Eighth avenue, New York. being de-
scribed at some length. These pur-
chases were made, 1t is charged, by Mr..
Westcott and was afterwards transfer
red by him without consideration by
him to Carter. Among these invest
ments, 1t is stated, were large amount
of stocks and bonds and other securi-
ties. Among the investments made in
the Southern District of Georgia, 1t is
charged, were the following: One hun
dred and fifty shares of the Propeller
Towboat Companys stock at the par
value of 800 a share; 20 shares of the
Savannah Brewing Company's stock
par value 500; Is shares of the Savan-
v.
par value 500. All of these shares. it
Is charged, are still held in the name
of Carter unless transferred to his I'M
Gle, Lorenzo d. Carter, or to l. Stan
ton Carter. Mention is made
of the attachment of the
Propeller Towboat Company's
stock by NJ. A. Connolly for services
alleged to be due him by Carter and
II is asserted that Connolly has ac-
CURED no right by this attachment and
that the entire amount is subject to
the claim of the government
Cunningham and Gordon Loans.
Other investments were the loan of
$4,000 to Mr.. T. M. Cunningham, and
similar loan of $4,000 to Col. Beirne
Gordon, both loans having been made
by Carter acting as attorney for West
colt and afterwards to Carter by West
colt without recourse The Gordon
loan was secured by a $4,000 endow-
ment policy in the Mutual Life of New
York and a mortgage upon Col. Cor
don's residence on Oglethorpe avenue.
1t is stated that the endowment policy
has now matured and the company is
ready to pay the same to the proper
parties, and II is also stated that Col.
Gordon is ready and anxious to pay
the full amount of the claim against
him as soon as the proper parties shall
have been designated by the court.
The connection of Messrs. w. w.
Mackall and j. Randolph Anderson
with the case comes from the collec-