Evening journal., 1916-01-04
UNCLE SAM sues FOR
CANAL Co. DIVIDENDS
Asks for $5I,IS7.5O With
Interest Alleged Due
Since 1911
SUITS COME UP
FOR RE-TRIAL

FUK KE- i KlAL
Having been referred back to the
United State District Court by the
United States Court of Appeals, the
case of the United States Government
vs.. the Chesapeake and Delaware
/ Canal Company retrial of the case
] was begun before Judge Edward G..
Bradford this morning
The District Court heard the case
on October u, 1914, when the govern
ment sought to recover S51,1S7.50,
with interest, from November II,
1911.
At the previous trial Judge Brad
ford gave binding instructions in
favor Of the plaintiff The Canal
Company appealed to the Circuit
Court of appeals, which ordered a
new trial
The governments side of the case
today was presented by United States
District Attorney John p. Nields The
canal company was represented by
Andrew c. Gray OF this city, and Bid
die. Paul and Jayne. of Philadelphia.
Considerable time was spent at the
opening of the session in empanelling
the jury, a number of jurors failing to
respond when their names were called.
Each side was allowed nine chal-
lenges. Mr.. Gray suggested that all
government employees be excused
from jury duty in the case.
Theodore {. Simpson, after being
accepted as a juror, stated that he sat
as q juror in the previous case. At
| torneys for both sides said they had
no objection to the juror. Judge Brad
ford Said at that time the jury return
ed a verdict under the courts direc-
ton.
The jurors finally selected were:
William b. Hazel Luther Marvel, Will
/ liam N. Hazel, j. +. McWhorter. Theo-
dore G. Simpson, Winfield Lattomus,
George d. Turner, II. Bert Mitchell
Francis b. Watkins, William H. Mar
vii, John w. Watkins and J. L. Wells
District Attorney Nields opened the
case, reading the four counts, namely
that S21 $3.50. and $14,625, with a to-
tai of 51,1S750. with interest, is
owed by the defendant to the govern
ment
The government alleges that in the
years of 1929 the government ap-
propriated money from the Treasury
to pay one-quarter Of the cost Of build
ing the canal The money sought is
for dividends declared by the COM
pany in 1873 1875 and 1876.
Mr.. Nields also said the govern
ment would call James L. Wilson as
sistant treasurer of the canal com
pany for years, who worked under
Henry B. Leslie, his cousin, the treas
urer.
The government, Mr.. Nields said.
would show that in 1873 Mr.. Wilson
appropriated $4,000 to assist another
party. and when he informed Mr.
! Leslie. he, too admitted taking money
( from the canal company treasury in
like manner. Both. then, the gov
ernment alleged. decided not to send
any notices Of the dividends to the
government.
During the presentation OF these
statements to the jury Mr.. Gray, for
the canal company, objected, saying
a review Of the case was irrelevant.
The court decided to allow the pre-
sentation, however, and Mr.. Nields
continued.
Mr.. Nields said that the company
has in all these years shown a draft
of 1871 preporting to be for 1875.
which has been altered. He also
said they have shown a forged
letter signed by a d. Holmes as as
sistant secretary of the treasury, such
a person never being connected
with the government office.
Mr. Nields said the government has
records to show that the dividends
owed the government by the canal
company have never been paid.
The court here dismissed those
jurors not called in this case
Michael J. O'Riley. was the first
witness called by the government
He has been executive clerk at the
Treasury Department for the past 21
years. He identified two shares Of
capital stock of the canal company,
owned by the government.
Walter Hall, secretary and treas
urer OF the Chesapeake and Delaware
Canal Company, identified a stock
ledger of the company. The pages,
he said. showed entries Of stock
owned by the government.
Mr.. Biddle. representing the COM
pany, asked that the entries be
copied. thereby not causing the COM
pounding of the book. The annual
minute book was also produced. The
witness then read from the company
minutes of June Z. 1875, showing a
dividend authorized at that time
Resolutions OF June 5. 1876. were also
admitted as evidence.
When court took a recess until 2
~ Ian Ell
stand with Mr.. Gray objecting to the
reading of extracts from cores
pondence. The court admitted them,
Mr.. Gray requesting that exceptions
be noted.