The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1908-01-22
Judge KObISaat Decision.

Chicago, January 8, Judge Kohlsaat,
in the United States Circuit Court, rem
dered q decision this afternoon in favor
of the government in the suit against
Captain Oberlin M. Carter, former
United States army engineer, charged
with having defrauded the federal gov
eminent to the extent of $500, 900
through conspiracy.
The court ruled that Carter was not
entitled to the $500, 600 in unregistered
railroad bonds and other securities
traced by the government to safety de-
post vaults and banks in various parts
of the country. Under the decision the
government will retain the securities
and the famous case, which resulted in
the conviction of Captain Carter and of
Greene and Gaynor and the imposing
of penitentiary sentences, is brought to
a close.
Funds of Captain Carter, which the
government claims were proceeds of
Carter's collision with Greene and Gay
nor, are tied up by suits pending in the
federal courts of New York, New Jer-
sey, West Virginia, Georgia and Hi
nois. By agreement, all of these were
consolidated and tried before Judge
Kohlsaat in the United States Circuit
Court in Chicago, about a year ago.
1t is the claim of Carter that the funds
in question were given him by his
father-in-law, the late Robert f. Wes-
colt, of New York.
The case grew Gu % the construc-
ton of certain river and harbor i'm
provements on the coast Of Georgia.
The government prosecutors contend
that the army officer and the contract
ors defrauded the government in the
sum of So, 225, 600, and that one-third of
the amount, or about $3.50, 000, went to
Captain Carter. Special assistant to
the United States Attorney General,
Martin e. Erwing, was assigned to the
prosecution of the cases, and, after
several years work, $500, 600 invested
| by Carter in various States was traced
and seized.
The hearing before Judge Kohlsaat
extended over several weeks, and scores
of witnesses were examined. The
Judge, in his opinion, said:
cit must be borne in mind that the
transactions in this suit covered a per-
iod from December, 1891, to December,
1907, during which years a number Of
contracts were let, and that even
though Carter was not in actual con-
spiracy with the contractors, yet il no
knew of the vast profits and the prices
| allowed them on the earlier work it was
his duty to investigate thoroughly the
| situation and see to it that the govern
ment thereafter paid no more than was
| fair and just. Even negligence, under
such circumstances, would have amount
| ed to fraud. If, therefore, Carter was
cognizant of the fact that the contract
ors were reaping abnormal profit from
the 1892 work, and that Wescott was
interested in that profit and was turn
ing it over to him under any kind of
cover or his share of said profit, he was
false to his trust, and should be held
liable to make good to the government
all the fruits Of his fraudulent act.
without passing directly upon the
question as to whether Carter had ac-
tual knowledge of and connived at this
raid on the government, the facts
brought out are such that ne must, as
a conclusion of law, be held chargeable
with knowledge of what was being done
in the premises. This fact alone makes
it clear that the government is entitled
to a decree awarding to it each and
every one of said pieces Of property