The Savannah morning news., 1904-04-08
ALLEGED FRAUD
ULENT TRANSFERS
BY GREENE AND GAYNoRS.
STOCKS ADJUDGED SUBJECT 10
THE CoURN

NJ, Marion Erwin Told of the Al
Legged Fraudulent Transfers of
s.ocu-tsnve Interesting Descrip-
.,on of How Frauds Were Traced.
r..n.fera and RetransfexH
Marked the Case-TOtaA of A9s
shares of stock in Savannah
DredninE Company Was Held by
the Two Defendants.
Tn the United States court yesterday
rertaan property belonging to the re-
calcitrant defendants. Greene and the
Csvnors. was decreed subject to the
court
The decree was taken by Mr..
Marion Erwin, special assistant to the
attorney general, whose special duty is
~ prosecute the cases against Greene,
the Gaynors and Capt. Carter.
In presenting the final decree to the
court for signature, Mr.. Erwin made
some interesting disclosures concerning
tho case and the efforts of Greene and
c,svnor to dispose of their property
when indicted.
Mr.. Erwin commended that when
Greene was indicted he made over his
stock In the Savannah Dredging Com
pany to Arthur H. Smith, of the firm
If Kellogg e. Rose, New York. The
dividends. 1t was alleged, were paid in
directly to Mr. Rose. who in turn paid
them over to Greene.
Gave 1t Back to GRynOr.
In the Gaynor case it developed that
he had paid his stock over to his son,
a minor, John F. Gaynor, Jr., who In
turn transferred it to William 3.
Kirk, security on his $4,000 bond At
ter the bond was forfeited in Savan-
nah. Kirk transferred the stock back
again to Gaynor Kirk alleges that he
did this because he considered he was
i released from liability when the Off
4 Gals here took Greene in custody.
Upon the Judgment Of the court on the
two $4,000 bonds of Greene and Gay
4 nor, a return of nulla bona, or no
property of the defendants in this
jurisdiction, was made. Bills in equity
were then filed in which it was alleged
that 49S shares Of stock in the Savan-
nah Dredging Company entered as the
property of Arthur H. Smith and John
T. GaynOr, Jr, were really the prop
erty of the two defendants respective
3 ly.
Tractsg the Transfers.
Mr.. Erwin told of his Investigations
in the cases, tracing the transfers Of
the stock mentioned to Smith and to
Gaynor, Jr. The stock was afterwards
Tetransferred as narrated. The trans
fers were traced through New York
banks. 1t also developed that the
stock had been acquired by the de-
PENDANTS in 1891 and had not been
transferred until after they had been
Il indicted, or about that time The
stock was equally divided between the
two defendants, each holding 249
shares.
In the Greene case it was shown
that after the stock had been trans
ferred check for $1,245 as dividend
was Issued to Smith, who Endorsed 1t
TO Greene's attorneys. Kellogg Sc Rose.
The testimony of the bank officials in
New York Showed that the check was
deposited in the New York Security
Company by Lachlan Kellogg to
0Ieene credit, ana was transferred to
the Knickerbocker Trust Company,
with whom he had an account.
In view Of these facts" said Mr..
Erwin, I'VE submit that the property
is subject to the levy of this court as
the property of Greene and Gaynor."
Court Gave Final Decree.
The final decree handed down by
Judge Speer makes provision as fol-
lows; To Mr.. Abraham Minis, coun-
sci for the Savannah Dredging Com
pany the sum of s75 is awarded in
each case for his services. The ball
ance of the dividend is to be paid to
Mr. Albert Wylly receiver.
All further dividends in liquidation
OF the assets of the company payable
10 the holders of the shares of stock
snail be paid to Mr.. Wylly, to 20 to-
ward reducing the principal and inter-
est on the judgment of $40 900 entered
against the defendants.
Mr.. Wylly is continued as receiver
ana IN payment for his services will
take per cent. of the moneys turned
over to him. To Commissioner Hew-
iett $lo.lO is awarded for his services
IN taking testimony.