The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-12-08
ECHO HEARD HERE
OF FAMOUS CASE
Government Proceeding Against
Bondsmen of Gaynor and
Greene.
LOWER COURT is AFFIRMED
Virginia Railway and Power
Company Suit to BE
Argued To-Day.

An echo of the famous conspiracy to
defraud the government and which re-
suited in n swindlc OF 100000 In 1898,
when Oberlin NJ. Carter, United states
army engineer, John L.. Gaynor ana
Benjamin r. Greene attempted a gigan-
tic graft By means of the contract 10
dredge the harbor of Savannah, Ga,
was sounded yesterday in the united
States Circuit Court of Appeals.
Judge Rose handed down an opinion
affirming the Circuit Court of the
Western District of Virginia In the
case of Mary c. Leary, administrators
of James ID. Leary, appellant, against
the United States of America. appellee.
This was a bill of intervention In the
cause of the United States against Ben
jamin d. Greene, Luther Latin kelloS
and the Norfolk and Western italtWa%,
Leary was the bondsman in the sum
or $4,000 for Greene, and this WAS,
forfeited when Greene escaped trial by
fleeing to Canada. The widow of LearS
sought to recover this money because
Greene VI eventually brought to trial,
but Judge Mcdowell held the inter-
vention to be against public policy
Though he afirms the lower court,
Judge Rose in his opinion holds that
the intervention is barred by laclles
through not presenting the petition at
an earlier date.
Lnrgc Frnud Pcrnctratcd.
The contract for the improvement OF
Savannah harbor is an old story to
the American people. Carter. Gaynor
& Greene are believed to have defraud-
ed the government out of about $780,
IN r. A. ~. .,;p,n t1,A. ~, r-a e
placed in the name of others, kellogg
is alleged to have attempted to hold
Greene's share, which at the time was
about s113.00 This was ultimately In
vested in 400 shares of stock of the
Norfolk and Western Railway.
On the charge of c~onspiring against
the government. Greene was arrested
in 1899. 1t was then that kellogg. who
represented Greene as attorney. induced
Lcary to become bail for S25.00o for
Greene's appearance before a United
Greene deposited some of his Norfolk
and Western securities for the purpose
of ~indemnifying Leary or the govern
ment.
Jumped His Ball Bond.
The petition to intervene and the bill
of Intervention offered alleged that the
intervenor was the administrators or
James D Leary;; that December II. 1899,
Greene had been arrested in the South
ern District OF New York on a warrant
issued by a United States commissioner,
United States DISTRICT Court for the
Southern District of Georgia. and was
held in bail of $4,000; that either
Greene or kellogg applied to Leary to
furnish this bail: that Leary became
bail; that at the same time Greene
placed In Kellog's hands. as trustee
and depositary, to ecure Leary against
loss, 200 shares of Delaware, Laoka-
wanna and Western Railway stock, |
upon Condition and understanding that
keIlog should hold such shares of stock
in trust for Leary until Leary was re-
leased from the bail bond. or in case
of Leary's liability thereon should be
that Greene withdrew the
Delaware, Lackawanna and Western
stock and substituted that of the Nor
folk and Western, upon the same terms.
and conditions; that on May %. 1901,
a warrant for Greene's removal to
Georgia for trial was issued; that
$4,000 bail was required; that it was
failed to appear in Georgia for trial.
III 19cS the United States brought
suit for the recovery of the bond, about
$4,000, and Judgment was awarded
In 1908: but it was never collected. In
the opinion of the Circuit Court of APP
peals, the governments claim upon the
stock of the Norfolk and Western Rail-
way Is as good as against any person.
Other Cases Argued.
me following cases were argued yes
terday before his court:
No. 992-Southern Railway Company
plaintiff In error. VS.. Mooresville Cot
ton Mills, defendant In error: In error
to the Circuit Court of Statesyille, N. c..
Cause argued by L. c. Caldwell. of
Statesville, n. c.. for the plaintiff in
Statesville. N. c., and zeb ". Turing
ton, of Mooresville, N. c., for, the de-
fendant in error, and submitted.
No. Charlottesville Cotton Mile,
plaintiff in error, VS.. Southern Railway
Company, defendant In error; in error
TO the Circuit Court at Statesville. N. e.
Cause argued by Thomas B Nicholson,
of Statesville. n. c.. and Zebl v. Turling-
ton, of Mooresville, n. c., for the plain
tiff in error, and by /. c.. Caldwell, of
Statesville. N. c., for the defendant In
error, and submitted.
To BE Argued To-day.
Tho following case Will he argued
this morning when court conyenes at
IL o'clock:
No, 9o5-Virginia Railway and Power
Company, appellant, VIZ. First National
Bank of Richmond. appellee; on appeal
from the Circuit Court at Richmond.
To be argued by Eppa Hunton, Jr. OF
this city. for the appellant. and by John
Pickrell and George Bryan. OF this city
for the appellee.
R0In THEE At W0RK