The Birmingham age-herald., 1908-01-10
CARTER .1A MUST PAY MONEY Judge KohISaat's Decision Is Made After Many Weeks DISPUTE OVER THE BONDS Carter Claimed That His Father-In- Law owned the Bonds In Cues
 tion, But Judge kohsaat
 Does Not Agree.
DISPUTE OVER THE BONDS

the government in the suit against Capt. Oberln M. Carter, former United States army engineer charged with having de- frauded the federal government to the extent of $7OO,OOO through conspiracy with Contractors Greene and Gaynor.
 The court ruled that Carter was not entitled to the s40000O in unregistered railroad bonds, and other securities, traced by the government to safety de- posit vaults, and banks in various parts of the country Under the decision, the government will retain these 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 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 Jersey, West Virginia, Georgia and Illinois. By agreement all of these suits were con solidated, and tried before Judge Kohl saat in the United States circuit court in Chicago about year ago. It Is the claim of Carter that the funds in ques- ton were given him by his father-in-law, the late Robert F. Wescott of New York, The case grew out of the construction of certain river and harbor improvements on the coast of Georgia. The govern ment prosecutors contended that the army officer and the contractors defrauded the government in the sum of $2,225,OOO and that one-third of this amount or abouc $75O 0OO went to Captain Carter. Special assistant to the United States Attorney General Marion Erwin, was assigned to the prosecution of the cases and after several years work $4o0,0O9 invested by Carter in various states was traced and seized The hearing before Judge Kohl saat extended over several weeks, and scores of witnesses were examined.
 Judge Kohsaat in his opinion said:
 "It must be borne in mind that, ,tlle transactions in this suit covered period from December, 1891, to 1897, during which years a number of contracts were let, and that even though Carter was not in actual conspiracy with the contractors, yet if he knew of the vast profits and the
 
 it was his duty to investigate thol onghly the situation, and see to it that the gov ernment thereafter paid no more than was fair and just. Even negligence under such circumstances would have amounted to fraud. If, therefore, Carter was cog nizant of the fact that the contractors were reaping abnormal profits from the 1892 work and that Westcott was inter- ested in that profit, and was turning it over to him under any kind of cover as his share of said profits, he was false to his trust, and should be held liable to make good to the government all the fruits of his fraudulent act.
 Carter's Knowledge.
 without passing directly upon the question as to whether Carter had actual knowledge and connived at this raid upon the government, the facts brought out are such that he must as a conclusion Of law be held chargeable with knowledge of what was being done in the premises. This fact alone makes 1t clear that the government is entitled to decree awarding to it each and every one of said pieces of property held by the receiver, which shall be found to have been passed directly to or indirectly with money re- ceived by Westcott or any one else or in any way arising from funds made up as profits realized by the contractors un- der the contracts in the suit
 Westcott, mentioned in the opinion, was Carter's father-in-law, charged by the government with having made investment of funds sent to him by Carter, which funds it was alleged, were part of the funds diverted by Carter and the con tractors, Greene and Gaynor.
 
 ford White was a member, but he de- clared that this fact would not infiu- ence him in any way in weighing the evi- dence and reaching a verdict.
 Third Juror Taken.
 Robert M. Vandyke was the third juror to qualify after luncheon. He gave his occupation as that of a clerk and dis claimed any opinion that would interfere with a calm consideration of the evil dence.
 George Jeremiah, an insurance agent, seemed about to enter the jury box when MT. Littleton used his sixteenth challenge against him. District Attorney Jerome later retaliated by using the peoples twelfth challenge against Edward C. Gray, who had seemingly qualified satls- factoriy after a lengthy examination. It was not until William F. Doolittle, the sixty-second talesman called during the day, had been reached, that another juror passed lntO the DOX. MT. DOOlittle iS clhSl clerk in the auditing department of the New York Central railroad. The opinion he entertained, he said, was not worth consideration, as he had not closely fol- lowed the case.
 Startling Statement.
 It remained for Patrick J. McCue, an elderly manufacturer of hats, who was se- lected at 5:0S D. m. as a temporary juror, to starte the nearly deserted court room by announcing in reply to questions that he had never heard of the Thaw case. He was quickly accepted by both sides
 Wesley Gray Gilmore, a packing box manufacturer, caused the defense to ex- pend its seventeenth challenge, and James Moran, a painter, drew out another chal- lenge from the prosecution.
 The days supply of jurors having been exhausted at this hour, Justice Bowling ordered a 15-minute recess to enable the attorneys to consult as to further chal- lenges.
 The storm this time did not entirely sweep away all of the temporary ma terial but four out of the five falling be- fore the range of the challenges. Stuart, No. r went out by consent. District At torney Jerome challenged McCue, who had never heard of the case, and the de- fense excused Walls. No. s, and Vandyke, No. 9. Juror William F. Doolittle was made permanent and received the oath of service It was o'clock when court ad-