The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-10-27
1t Led to the Downfall of Cap
tain O. M. Carter.
Government Contracts and How
Rake off Was Secured.
Brief History of This Gigantic
Fraud; Trials Soon.
Especial to The Free Press

as though John +. Gaynor and Captain
Benjamin d. Greene, recently brought
here from Montreal will not have tc
wait long before being brought before
the bar OF Justice to stand trial for com.
phcity in the enormous frauds of for
mer-Captain Oberlin NJ. Carter against
the federal government in connection
with the Savannah harbor improve
ments. The United States district
court begins its term two weeks from
Monday. 1t has been customary in past
years when the docket was light for the
court to take an immediate adjournment
until December, but in view of the i'm.
portance of the Greene -Gaynor case it Is
believed that this custom will be waiv
ed and that the trial of the noted pris
oners will begin next month.
The near approach of the trial has
| reawakened public interest in the case
The fact that the prisoners have APP
parently became reconciled to their re
turn to Savannah and now admit the
| folly of their course in so bitterly con
testing the eXtradition proceedings does
not mean that it is their intention to
lay down without a fight. They have
retained the best counsel that money
is able to procure and it is evident that
they intend to continue the fight againsi
conviction inch by inch.
1t is now six years less one month
since Gaynor and Greene and the othe
members of the Atlantic CONSTRUCTION
company were indicted by the United
States grand jury here for a conspiracy
to defraud the United States of 1915
949.90. The events leading up to these
indictments were brought to light il
the trial of Captain Oberlin NJ. Carte
of the United States corps of engineers
which laid bare the frauds involvin.
such enormous sums that the publi'
stood aghast.
In 1888 Captain Carter, who was re
garded as one of the ablest engineers il
the employ of the government, was sent
here to take charge of the improvement
of rivers and harbors, the work on which
called for an expenditure of more thar
10
the Atlantic Construction company, o
which Greene and Gaynor were the head
got control of practically all the con
tracts. The methods employed by thu
alleged conspirators were brought t.
light in the trial of Captain Carter. A
the trial W. HI. Venable, a prominent
capitalist of Atlanta, testified that
when he saw Captain Carter in regar
to securing one of the contracts for the
harbor improvement work that office
told him it would take 100000 to STAR
on a contract. He was afterward ap
preached by Captain Greene and Tho
Gaynors and given a large contract fo1
furnishing stone for the work if h
would not bid. The Atlantic Construc
ton company secured the contract, Cap.
tain Carter reporting them to the wa
department as "The best responsible
bidders" Evidence of a similar natur
was offered by other contractors wht
had been unable to secureh any of the
contracts for the Savannah work.
In December, 1897, the secretary OF
war ordered the trial of Captain Car
ter by courtmartial. The charges were
roundly, that Carter drew the specif
cations for contracts so that no firm
but the Atlantic Construction compan,
would dare to bid on the work, that in
terror work and materials were accept
ed and that the surplus moneys above
the actual cost were divided pro rat;
between Gaynor, Greene and Carter.
payments were frequent, and that whe1
they mere to be made Captain Carter
would 90 to New York, where he would
draw a treasury order for the full
amount, plus $75, his expenses on tn
Journey. that this check would be hand
ed to Greene, and that within few day.
Gaynor would hand his check for one
third of the payment, plus $75, to Car
ter. 1t was estimated that Carriers
share of the plumber amounted to 1922,
52S. Carter was found guilty and sen
fenced to a fine and Imprisonment, ir
addition to military degradation.
After their indictment here Greene
and Gaynor surrendered to the fedora
authorities in New York. Then follow
ed long struggle against extraditior
to Savannah. Step by step the case wa.
fought, and when the United States
supreme court finally swept away all OBJ