The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1910-04-21
ARMY OFFICER LOSES
APPEAL TO SUPREME COURT
OF THE UNITED STATES.
ONCE CONVICTER OF FRAUD.
Ousted from Military Service, Placed in
Prison and Now Loses 100000 as
Outcome of Deal.
CORPORATION LAW NOT DECIDEb.

| WASHINGTON, II. g., April IS
! Dismissed from the army and put INTO
! the penitentiary for his alleged connec-
! ton with the fraud on the government
in the improvement Of the harbor Of Sa-
| vamah. Ga. former Capt. obcrln VI.
| Garter had 100000 fortune swept
out Of hIs hands today 0s a further out
come of that transaction This was the
outcome of decree by the United States
supreme court
The case was based ON claim against
Carter for an equitable accounting for
the money he had gotten frIudulcntly,
II was charged.
The claim of the government WAS that
Capt. Obcriu VI. Carter. aS engineer OF
the United States army in charge Of the
improvements in the harbor of Savan-
nah Ga. with Green" aud Gayuor con
tractors. dcfraudcd the government by
manipulating the specifications and the
letting of the contracts 50 aS practically
TO prevent competition and thereafter Su-
pcrintendng the performance OF the
work in such an inefficient ami lax man
ner as to allow faulty construction. IL
is claimed thereby the government lost
more than S2,oOOuvO. OF this amount.
it is alleged Carter got Onc-thlrd. TINS
sui was brought 10 obtain possess on OF
the securities and real estate III WhIci
It was claimed this money was invested
Relatives Are Accused.
l.. II. Carter Of Oakland, H., an uncle
Of Capt. Carter, and |. 5. Carter of Chl-
CaEo, brother, were charged with and
ing him to conceal the alleged frauduIehl-
ly acquired funds, and with having III
Il. "a
property purchased with the money III
question.
The circuit court held that the con
tractors had realized excessive prohS
and that they had divided them with
Robert f. WcStcutt of New York. now
deceased. Carriers fathcru-iaw. and aS
"A conclusion of law Carter must be held
chargeuble with knowledge of wlI WAS
being done in the premises,
Upou this conclusion it was held that
United STATES should recover.
OF the S5IS,1JD. which the government
claimed to have traced to Carter, as
profits he had received, S3I3,3J2 was
tied up in receivers hands in New York.
New Jersey. Illinois and Georgia, sub
ject to the disposition Of the present lii
gntiun In addition to this amount was
S37,1l4 which the circuit court held was
not sufficiently traced. but which the cir
cult court Of appeals awarded to the
government on the ground that IT was
either an original investment from the
profits, or Il substitute.
Carriers Take Appeal.
The ircuit court Of appeals rendered
Judgment against l., -. Carter for SD
20 and against |. &. Carter for Sis
2p4 From these features of the judg
mcnt The Carriers took an appeal to the
supreme court,
In announcing the optuion of the court,
Justice IurtOn said the ease was to be
decided On Il review Of the Whole cvl-
dence and not on the failure of the gov
ernnWnt 10 sustain any particular point.
lie said Captain Carriers style Of living
changed about the time of the Greene
Gayuor contracts. He began TO make
investments about this time. the justice
said. Mr.. Westcott, Carriers father-u-
law, was referred to by the justice as
"syrn n" for Carter.
From all the circumstances. the court
held Carter should have explained how
he got So much money, and this he had
failed 10 do.
The court held that the United States
could compel Carter to account for all
the gains he haO received whether they
could hc traced to the investment IN
which 1t was put or not.
The deCISh n of the supreme court in
yolylug the conSttutlonarty of 'he cor
poratlun tax law was not announced to-
day