The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-18

Extraordinary Charges Of Fraud Against the
Post Onico Dcpartment-How Contracts Arc
Managed and the People swindled.
Washington correspondent OF the Boston
Traveller makes the following remarkable dis
closures in regard to certain alleged operations In
the Post ONCE Department at the seat OF govern
ment:-
The fact OF awarding the carrying OF the overland
malls to Wells, Fargo Co. only a short time ago is
still fresh to the minds Of your readers Last year
ried from North Platte station on the Pacific Rail-
road. 200 miles west OF the Missouri river
were asked for this year ear BY the Department
to carry the mails from the ermini OF the Pacific
| year. Wells Fargo Co. bid $l,350,000 John ALI
man bid S500,0OO and Mr.. Spades Of Chicago. bid
some time elapsed and no response came from
| Spades; but an agent OF Wells, Fargo h Co. had in
the meantime seen him, and private understand
ing between the parties was effected. As Mr.
| Spades did not deposit proper security the
contract was annued. IL was then offered
TO Mr.. Altman, but for some reason he also de-
clined IT, All the competitors beng thus OF the
way OF Wells, Fargo Co. they were offered the
contract, but as their scheme was not ripe Mr. RAN
dan was told to look elsewhere. One morning there
appeared In the leading daily papers throughout The
country e. among the New York news items, these
| here this morning" couple OF days soourn in
the metropolis ana our Postmaster General re-
! turned to Washington, having IN his vase
| contract with Wells. Fargo & Co. TO carry
the overland mails at the rate OF sl.7oO,0o0 per an
i
else can IL be called y denounced In all parts OF
! the country through the press. Your readers
aware That Randall made u semi-olllciai eXplana-
ton, through the Associated Press that this very
great increase over the year previous was made ne
cessary by the fact that the new contract provided
for the carrying OF newspaper mails. A shallow
| PLANTATION, but withal the best he could make. In
| less than one month after the new contract went
into effect. among the items telegraped from San
Francisco was one saying that great complaints
were made against Wells, Fargo 4 Co. because, IN
stead OF bringing newspaper mails through
agreed, they were thrown Unfortunately along the
route over the Plains, there to remain until de-
strOyed.
The department finding Wells, Fargo y Co. unable
to carry through these mails at ordered the
greater portion OF them to be carried by steamer by
| the Panama route. without making any deductions
whatever from Wells, Fargo Il Co.'s bills The
affair VIII probably be investigated by Congress
and the entire transaction sfted from beginning to
| end.
4 ONE HUNDRED AND EIGHTY THOUSAND DOLLAR
SwINDLE.
Among the post routes established was one two
years ago In the Territory Of Arizona At least is
reason that contract was awarded to one
Mr. Poston-a brother Of the delegate from
that Terrtorymto carry the mails all 90 over said
Everything was going on smoothly and not muir
muir OF discomfort was heard about this contract
for no one knew OF 1t at the time was made except
the parties directly interested Now for the sequel.
The bill for the first years service in and was
promptly paid by the department. The affair now is
no longer secret but Governor Mccormick of Ari.
iona, learns In an indirect manner that 500, 900 a
route In the Territory or which he Is Governor He
examines into the matter, and in letter to the Post
ONCE Department, signed in his capacity OF
ports that mot single letter or an ounce OF
mail matter has ever been carried over the route;''
pr0nOunces 1t q swfndle from beginning to end and
protests against the payment OF any more money.
The contractor becomes alarmed and hastens at
once to Washington TO fix up matters. The second
years bill is presented for payment; but the pay
clerk, with Governor McCormick's letter before him
refuses TO pay It, An intimate personal friend OF
views with HIM. On the day following one OF these
interviews the pay clerk has note laid before him.
II reads:-
Pay this bill. A.w. R., Postmaster General.
The bill is paid and the contractor leaves in high
gee.
STILL ANOTHER swINDLINa OPERATION.
| Any at all familiar with postal matters is
going to most Of the foreign countries what is called
.'sea POSTAGE seven cents per letter-the amount
| for carrying letters upon the ocean highways. The
most OF the steamship lines are well satis-
their compensation for carrying the letters The re.
| gular line OF mail steamers between New York and
Havana are paid this sum upon each letter. The
| department has contract with the New York and
Havana Mail line to carry the mails at this rate.
Some time ago. however, company was formed in
| city and Havana, and the idea was conceived to
effect an arrangement with the Post onlce Depart
| ment TO carry malls TO Havana.
/ so far as the necessities OF the department were
concerned, the regular line from New York answered
every purpose and was perfectly contented
ceive the regular rate OF seven cents per letter for
1 the service performed.
How 1t was arranged know not. but the Balti-
more Steamship Company succeeded, and the Post
master General authorized them TO carry United
States mails to Havana, touching at Key West Fla.
| Two steamers composed the iine and each was to
make round trip every two weeks and for this SER
! vice 81, 900 per trip was to be paid.
No one will claim that the route by way OF New
York did not do all the service required and hence
question arises what necessity for this additional cx.
| pendltnrc OF upwards OF $4,000 per Year, Let us
| now examine and see how well this company IL COM
| pensated for the service In comparison with the
regular New York line which receives seven cents a
letter, without regard TO whether they carry fifty
/ letters a trip or 500.
! During the month OF October 1853, the steamer
Maryland made two trips. All told she carried both
to and from Misunderstanding newspapers-Inails
which, estimated at rate paid for 'sea service,-
would amount TO $G9 o. But instead OF this amount
she received the sum or $1,000. The steamer Cuba
also made two trips, carrying mails which would
nave entitled her 10 s73 As; but instead or this
check Is sent by the Post ONCE Department for
81 900.
Can palmer OF swindng the government DO
made out than tiisf Yet it goes on day py day.
month after month"; and no efforts made to check IL.
A FeRuCuUs DUEL BETWEEN A CREOLE AND A FHeHcHMAa
stn n-ioo