Los Angeles herald., 1906-01-21
OUTLINES CASE AGAINST
GAYN0R AND GREENE
DISTRICT ATTORNEY TELLS OF
DEALS WITH CARTER
Describes Steps by Which He Alleges
the Defendants Gained Control of
the Officer and Made Use of
Him
BY Associated Press.

SAVANNAH, Ca, Jan 20.-Assistant
District Attorney Marion Erwin, upon
the convening of the federal court to.
day, indicated TO the jury the course
the government would follow in pre-
senting its case against Greene and
Gaynor. lie said that it would show
III support of the charge of conspiracy
that the defendants came together in
an agreement to defraud the govern
ment, and that the overt act of con-
splracy had actually been committed.
The government, he said, would seek
to show that Lieutenant Q. NJ. Garter
came here in 1884 under General Gill
more and was connected with the river
and harbor work when appropriations
for rivers and harbors were not SO
large as now. Carter was appointed In
charge upon the death of General Gill
more, and the government would show,
said Mr. Erwin, that he fell in with
Greene and Gaynor At an early
stage, Mr.. Erwin said, the contractors
started to work on Carter, getting him
into little side contracts with them
and making Il little money for him,
or at least SO pretending; then they
commenced to lend him money. He
was young officer who had no money
10 speak of. Ele would pay the money
back and at first the loans were in
to as much as $4,000. Gradually the
amounts increased, and he became in
Volved In contracts and enterprises
with them. Their associations were
very close in the early stages, and
they led him to believe he was a. sec
ond Eads, a man of great ability, and
that he could leave the army and get
in with them in the carrying out of
great contracts in Chilli or elsewhere.
YNHyiT1 fA1
ants never had any intention of car
rying out these plans, but, by entering
into them. they made Carter their man
lndlsputably. Later the alleged con-
spfrators interested the people of
Savannah In getting a very large ap-
propriatlon for Savannah harbor work.
a great convention being arranged to
lend aid to the enterprise.
This overstepped the Chill scheme
even and offered a splendid oppor-
tunity for the alleged conspirators.
Congress made this appropriation. and
in 1891, Mr.. Erwin said, Carter went
over to Greene and Gaynor body and
soul" Just how he was to be paid
the agreement in this body and soul
sell-out' does not appear, but a little
later, when the payments began upon
the big contracts made under the large
appropriation, divisions of the money
Could De SHOWN TO have been made at
the end of each month From 1892,
continued Mr.. Erwin, month by month,
the balances from payments after de-
fraying the expenses of the work and
payments made to their co-conspira-
tors, the younger Gaynors and others
involved were split up by Greene, Gay
nor and Carter in equal amounts.
In the advertising of contracts, Mr..
Erwin declared, Carter did not follow
the regulations, often in $1,000, 900 con-
tracts cutting down the time and so
managing as to suppress competition
and leave the work to fall to the
Atlantic Contracting company, of
which Greene and Gaynor We're the
chief beneficiaries. Many obstacles
We're thrown in the way of other pros
pective bidders. Carter was said to
have kept the specifications under lock
and key, guarding them carefully and
knowing every man who got a copy.
Carter, said Mr.. Erwin. adopted means
to stop the competition, the alleged
conspirators sometimes buying Off
other bidders and leaving the work
to the Atlantic Contracting company
at eXorbitant prices.