The Washington herald., 1908-03-26
CARTER NOT CLEARED
No VindicatiOn, Says Bona
parte in Courts Decree.
HIS INNOCENCE NOT AT ISSUE
Attorney General Cites Opinion OF
Judge kOhlsaat-Carter's Guilt Is
tsblished by COurt-martial-RiEh
OF Government to Deficiency of
Judgment Denied Against Carter.

The position is taken by the Depart
ment of Justice that nothing in the recent
decision Of Judge Kohlsaat in the Fed
eral court at Chicago can be construed
as vindication Of oberlin NJ. Carter,
formerly a captain in the Engineer Corps
Of the army.
Capt Carter was convicted of defraud-
ing the government in connection with
river and haTbOT Improvements at Sav9n-
nah. The suit AT Chicago was to recover
money In Carter's possessions said q
belong 20 the government.
M Nindication, Says Bonaparte.
Attorney General Bonaparte issued the
following statement yesterday:
The terms OF the decree are interest
ing, in view Of the statements published
that the decree was 10 be used as a basis
of claim for reinstatement to the army
by Capt. Carter and as a vindioation OF
him.
The department officials do not see
any vindication OF Capt Carter in the
results OF this litigation. Il IS pointed out
that these suits were not brought 70
establish Capt. Carter's guilt or inno-
cence. that that issue was settled by the
findings Of the court-martial. reviewed by
Attorney General Griggs, and approved
by President Mckinley
In his opinion. Judge Kohlsaat said.
among other things:
'' The evidence TO be found I'm the rec
ord with regard 70 the financial transac-
tions Of Carter. Westcott. and the con-
tractors Greene and Gaynor. is both vast
and intricate and entirely circumstantiaI
Suffice IL 90 say that without passing
directly upon the questions as 10 whether
Carter had actual knowledge Of ana con
nived at this raid upon the government.
the facts brought out concerning these
financial transactions are such that he
must. as a conclusion OF law, be held
ehargeable with what was being done in
the premises
Governments Rights Defined.
This fact alone makes It clear that
the government is entitled 10 a decree
awarding to It each and every said piece
Of property held by the receivers which
shall be found 70 have been purchased
directly or indirectly with moneys re-
ceived by Westcott or any one else. or In
any other way from funds made up OF
profits realized by the contractors under
the contracts in suit
In the decree entered u is declared
That, In October, 1897. there was in the
hands Of Oberlin NJ. Carter. assets speci-
fied-aggregating in cost about $4,000
which We're investments made with mon
eys arising from the profits OF the Greene
and GaynOr contracts. and constituting a
trust fund then belonging to the govern
ment; that, OF the above trust fund there
was tied up by the government suits
S51. .S2.n in the hands OF the receivers
which, with the income collected by ths
receivers bringing il up TO about $4,000
IL is declared, belongs TO the government
1T is further decreed that, OF the assets
tied up in the hands Of the receivers
there are stocks and bonds aggregatine
at cost and par values S37.llA 75-abour
$1,000 actual value-which were not
traced as having been purchased with
the moneys arising from the Greene and
GaynOr contracts. ard these are held tC
be the property OF Oberlin NJ Carter
Agents Liability Not Attacked.
THE right of the government is denied
TO have a deficiency judgment against
Oberlin NJ. Carter for the trust money
dissipated by Carters agents between
October. 1897. and the time OF the films
Of the governments suits in 1901: but the
decree leaves the government the right To
pursue the agents for such deficiency.
The decree gives the government q
deficiency Judgment against l. stanton
Carter brother of Oberlin NJ. Csrter.
for 81, 454lS fer the amount Of the trust
fund not accounted for by him.