Hume v. United States

• Decision Date: 18 November 1902
• Docket Number: 1,109.
• Citation: 118 F. 689
• Parties: HUME v. UNITED STATES.
• Court: U.S. Court of Appeals — Fifth Circuit

118 F. 689

HUME v. UNITED STATES.

No. 1,109.

United States Court of Appeals, Fifth Circuit.

November 18, 1902

J. D Rouse and William Grant, for plaintiff in error.

William H. Atwell, U.S. Atty.

In Error to the District Court of the United States for the Northern District of Texas.

Omitting the caption and indorsements, the indictment is as follows:

'The grand jurors of the United States, within and for the district aforesaid, at Dallas, in said district, duly selected, impaneled, sworn, and charged to inquire into and true presentment make of, all crimes and offenses cognizable under the authority of the United States committed within said Northern district of Texas, upon their oaths present in open court that on September 30th, 1896, in Limestone county, Texas, in the Northern district of Texas, and within the jurisdiction of this court, L. J. Guynes, D. J. Taylor, A. Effron, Jake Effron, W. J. Hume, George E. Tirney, and H. D. Markham, having theretofore unlawfully, knowingly, and fraudulently devised a scheme and artifice to defraud Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and various other persons whose names are to the grand jurors aforesaid unknown, which said scheme and artifice to defraud was to be carried on and affected by the use and means of the post-office establishment of the United States of America, and which said use and misuse of the post-office establishment of the United States was then and there a part of said scheme to defraud, and which said scheme and artifice to defraud was to be effected as aforesaid by opening communication as aforesaid by and through the post-office establishment of the United States, and by inciting said Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and various other persons unknown to the grand jury, to open communication with them through said post-office establishment, and which said scheme and artifice to defraud as aforesaid was to be carried out by the said L. J. Guynes, A. Effron, D. J. Taylor, Jake Effron, W. J. Hume, George E. Tirney, and H. D. Markham, doing and pretending to be doing business and buying and selling cotton under their names individually, and which said scheme to defraud, to be effected, aforesaid, consisted in, and was, in substance, as follows, to wit: The said L. J. Guynes, A. Effron, Jake Effron, D. J. Taylor, and H. D. Markham were to pretend to be in a legitimate business of buying and selling cotton, and shipping the same to foreign countries, at and from Mexia, Limestone county, Texas, and from New Orleans, Louisiana; that they were to contract and engage with Reinhard Strauss, Wilhelm Holoch, and C. F. Meith, and other persons to the grand jurors unknown, to purchase from them, or sell on commission for them, such cotton as might be shipped by the said L. J. Guynes, A. Effron, Jake Effron, D. J. Taylor, and H. D. Markham, to the said Reinhard Strauss, Wilhelm Holoch, and C. F. Meith, and that said Reinhard Strauss and Wilhelm Holoch and C. F. Meith were to pay drafts drawn on them and their bankers, or either of them, or the bankers of either of them, or the banker of either of them, for such amounts as might be indicated in said draft or drafts drawn against cotton so to be shipped by said L. J. Guynes, A. Effron, Jake Effron, D. J. Taylor, and H. D. Markham, from Mexia, Texas, or New Orleans, Louisiana, with bills of lading attached; the said draft or drafts so drawn to properly be for the amount that such shipment of cotton was to bring, according to the quality and price of said cotton; that, when said agreement and arrangement should be made between the parties named, that they, L. J. Guynes, A. Effron, Jake Effron, D. J. Taylor, and H. D. Markham, should buy from the said George E. Tirney and W. J. Hume cotton of a very inferior and cheap grade, commonly known as 'linters,' and the said George E. Tirney and William J. Hume, under the name of Tirney, Hume & Co., were to furnish said linters for the purpose of shipping same to the said Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and to the other persons unknown to the grand jury, and, when so shipped, bills of lading were to be made out, and drafts drawn against said linters, indicating cotton of a higher and better grade and price than the said linters, and the drafts being drawn for amounts indicating such shipments of said linters to be a grade of cotton much higher and better than said linters, and which said drafts were to be guarantied and cashed by the aforesaid Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and other persons to the grand jurors unknown, said Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and other persons to the grand jurors unknown, believing that such drafts and bills of lading were true, and were in fact for cotton of a higher and better grade than linters, and the said Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and other persons to the grand jurors unknown, thus actually paying for cotton of a higher and better grade than linters, and of a higher and better price than linters, when, in fact and truth, only cotton of a very inferior grade and lower price, commonly known as 'linters,' were actually and in reality shipped, and thus drawn against, as above stated, thus defrauding and with the intent to defraud the said Reinhard Strauss and Wilhelm Holoch and C. F. Meith, and other persons to the grand jurors unknown, of the difference between the price and value of the higher and better grade of cotton and higher and better-priced cotton so indicated by said drafts drawn and bills of lading attached, and the low grade of cotton commonly known as 'linters,' which was actually shipped; and in furtherance of said artifice and scheme to defraud, to be so effected as above alleged, the said L. J. Guynes, acting for himself, and in conjunction with the said A. Effron, Jake Effron, D. J. Taylor, H. D. Markham, George E. Tirney, and William J. Hume, as aforesaid, in pursuance of such schemes and artifice to defraud, did on April 6th, 1896, wrongfully and unlawfully deposit in a certain post office of the United States, to wit, the post office at Mexia, Limestone county, Texas, in the Northern district of Texas, a certain letter addressed to Mr. William Holoch, Chemnitz, Germany, which letter was in words and figures and letters as follows, to wit:

''L. J. Guynes, Cotton Buyer.

"Mexia, Texas, April 6th, 1896.

"Mr. Wilhelm Holoch, Chemnitz-- Dear Sir: I should like to introduce my shipments of cotton in your markets, and take the liberty of addressing you on this subject. I have never done any export business direct, but am, nevertheless, thoroughly familiar with it, and feel hopeful that after a few trial shipments I shall work up a good business. For any information concerning me, I beg to refer you to my bankers, Messrs. Prendergast, Smith & Co., of this place, who have known me all my life. Should you desire it, however, I would be willing to secure you with ample margin against claims until you acquaint yourselves, through mutual transactions, with my abilities and manner of business. I ask for no large business at one,-- as mentioned before, to work up a good trade is my aim. Our cottons are slightly, and of good staple, and, no doubt, will please you. Awaiting your early reply and pleasure in the premises, I beg to remain,

"Yours very truly, L. J. Guynes.'

'And the said L. J. Guynes, acting as aforesaid in pursuance of such scheme and artifice to defraud as aforesaid, did, acting for himself and in conjunction with A. Effron, Jake Effron, D. J. Taylor, H. D. Markham, George E. Tirney, and William J. Hume, on June 26, 1896, wrongfully and unlawfully deposit in a certain post office of the United States, to wit, the post office at Mexia, Limestone county, Texas, in the said Northern district of Texas, a certain letter addressed to C. F. Meith, Leipzig, Germany, which said letter was in words and figures and letters as follows, to-wit:

''L. J. Guynes, Cotton Buyer.

"Mexia, Texas, June 26th, 1901.

"Mr. C. F. Meith, Leipzig-- Dear Sir: Your esteemed favor of the 6th reached me in due course, and have given contents my careful attention. Acting on your kind suggestion, I tried to arrange with Messrs. Prendergast, Smith & Co. to guaranty the out-turn of my shipments to you, but regret my efforts were in vain. They assure me that it is contrary to their rules,

and that, while they feel they would be safe in guarantying my shipments, yet they don't care to make such a precedent, and hence I see no other way of securing you than proposed in my last letter; i.e., either I will deduct from each invoice, or remit in a bank draft, $3.00 or $4.00 per bale, which shall remain in your hands until shipments are approved, when you will refund same to me. As stated in my last letter, I have not lost sight of the fact that I am entirely unknown in your market, and it is precisely for that reason that I am offering security which I consider equally as good as a bank guaranty. I now beg to confirm that all offers and sales shall be based upon the Bremen classification and arbitration: also that all offers shall be in force for twenty-four hours and understood even running grades, good color, and staple. When a staple of 28 m/m and 28/30 m/m can be guarantied, it shall be mentioned in the cables. Shipments by direct steamers to Hamburg and Bremen, buyer's option against port; bills of lading from Galveston or New Orleans, my option. Prices in pence cif and 6 per cent., if the buyers wish to insure you are authorized to sell at 1/32d. less. Insurance, if covered by me, to be with a good company, and to include 10 per cent. imaginary profit, country damage and until warehoused in Europe. Reimbursement at 90...