The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-09
THE POST OFFICE FRAUDS.
THESTiRTLTNG NiRRiTFVE OFsPE-
CIiL 1GENT UOLBROOk.
The Department UNFOLDING the Men who
Were swindliug the Government md the
Peoplc-LIOM jew elra In Nchtl tlRRIion Ended.

Peopic-tiOw JEWELS sInvcstIgation Ended.
WAsHINoToY, Feb. 81. l.. Holbrook
was examined 10y the Committee on Post Ofnces
and Post Roads 10 day, and told a very inter
estlng story. Hc had been in the Post once
Department from ISL TO 1875, In various capaci-
ties, from a sixteen hundred dollar clerk in .hs
contract ONCE to special agent Of the money
order ONCE at tl,sO) a year. lie gave tho follow
Ing account of the Peterson contracts:
NY nrst knowledge Of Dr Petersons contracts and of
so aud he seus Of is al RheS es e Tlnft vi 81
travelling a,a special ageui for inc Post once Depsf
srn Iexa W.. otdetcd by ne sup,ri9tcndcnt OF my
vile Pos, olcc mopey order business, the Pacgue.
mines ono the =, ,hcNandrla cinco on tho Red
Pacauemlnc. l. the nSs once on tbe s,s.np, tpt
was directed 70 visit north Of New Orleans went en' TO
s! ,! r ,ics o. 'a, Salcaei After Tansaciing my Dus
!efm,nus ?t she BAYOU sara route. between Pacqge
hins, ne r asl 81 Ms atention wa, called by
eSsI 99 Day!, BcRd n, weTe sgpPed Su, once
We ine not dv, ring any mails TO three post Offices
had ioes ts "; Cspt le.thers, who SAID mat he
Post Otncc Department. being unable to reach
fetsfson. snd he assei me 'i'V Il would % cin The h
attention the department TO TIE hardship which they
man had no property and they uid not IKE to DO bu
nes. IN that way found that the iacts tvd By THIS
When We went into the Bend the Postnl lster at New
we're ecT & me aHa si h, tsat b w 9cSpe SGpD
tinualy written to u Post once Department and waa
me oiccr oi thc department to lay tic facts be-
Snn Sat M % wS Ann pisel SR o ps. ss SeT SSG snd
ned upon tic forward deck OF the steamer. entirely
ss fa ssonS ba, .SS got sts.
TO ne letters csed the eerhs attention " the fact
ae on or @ e. S once Hss pspsl e a.
ou to oGs 3 Win e Isy @ Gs ssns 1 iSfs
or nothing ior carrying them that they were forced
Their ray, even Ead is da agree % sye 6.isS Tk,s
Sas boat Of the Red River Packet Company, @. II.
ON my return 20 New Orleans went to Mr. Kountl
aud called his attention TO the manner in which the
N s Sers be ns earIiY5 9ng to an s9tl21al fact ha!
IT conp ne that they for woeks someiimee received
10 no mai s'prc,sl on the d9sn trip n We boats Tor
iy laden with c.ttou and refused to make any land.
f unless hey dcotton TO take On or passengers TO
In orc instance twelve mails we're brought upon tho
tHp and he .,fSiec WAS te e. reoE fse ssss rc
Ply O Mr. kouk was similar 10 that OF tho clerk that
tey coud ett no ntrac from tlc Government: that
Peters vas Nns $4,000 year for carr in- the
NJ, ,'s % a, n' s'e,G @ 10 10 mem sIso es, guy i.ey
same nngu4se that tho CLERK u tho boat used.
contracts whi, Giles A. smith was sec1nd A.sIs,an,
Un my return to Washington made written report
end .asS 9s & In 70 s 10 t'f tSc mShnT Sn pp's m
Mhicn the steamer Lee treated the mail earyneu ana
70 ihe Benz, tie natl bping taSca up ny tie Naicnrz
TX ers tv n ebsre Of tst s1 Hes 2 d. A
had TAX siih 1cn SANTA, Second Assistant Iostmas
ihc service there an SAID as much a. 6ousht prudeSI
.hs, Br Peterson va. openly trading oa,ians upon
az 4indy shaL TOD ann As h.vs iefsfred 10 iEc
say thai ne tgid me that cspt j. cannon captlin Of
ne, ne Rone;t T. Lee' sad dsessiion Of steaT9oat
grieyances before the department. When returned
hutu pn
master Grneu and Mir. Creswell. who was Postmaster.
ID enter more ially a,o an eIpaniiio Of the
be- hal received 4 al from the steamboat men, VINO
ecSesd potu S St0 ore SSRaFs'1 eer
Os sT " M'poH',Ss bureau ;So a.. tef0n, o;
post masters o see that tlcr balances Of surplus fluds
oc i'F F deal 90 % i4' S'YSr tn qfe9. oee.
ay~ 5eG1. 5Sa 'aa The q" ssws; Lansog
holding o.cA ars, suus Of tmonyJ whcn theV not
in IepoHss t. ny ,tsI' hey replied {, At they asd 20
Sc and n had nc no, 'SSnfE SsG Tor ~i,. M.ek st.
Dr Mcdonald the tup rintcndent of my bureau. told
Tie second Assitant Fos msstef-Gen,ras once thst
be hsa 60 oeg5 Hrel Of i.poTtnG t9e ireSu ares
q how H. gia l, Mr M3D3nald nsppen % maze the re-
10 4q ma AZ M pu sply9S orly sesy m 2f S fSSr"sng
meht? A.-on account of the continued failure OF
funds on tue same plea Tat that leJ rot sci tle
to heir orce. stated he feG. a%et % ~ NJ e3n,Rg
the contract clerk FOR tha section VINO ADVISED me To-
let the matter alone that It was matter thAt woud
9 What reason dld he give Tor ,ha, statement
A. cannot say that he gave any direct Tor thai
Q-what did you understand by itp A-Everybody
In the department understood why it was.
. o-Mhst was ne general unaersiandps IN the do
m Intimate ir'sld aud surgeon Of Gen. Giles K Smith
Q.-Do | understand you to mean that Peterson, be
inR an lntimqte lrlenl Of Giles A. smith, AMI Gen
master General he sAs acting as middle man between
as AaP' d9 no. and these
Know tlat he received fsvors that very few
Hzed in wa, which very lew men Mere @ Recognized
IT, was e4n9y ,b N 1, ,ae % 9ne ot hs chief clerk l.
maeterG eneral, Gnes A. Smith. HIS accounts though
oas as proper SS SeS SfHiTsa rom Most MOS.
99sg sSs sboa eat sss ssres was properly
which had been foi ssdea & on account O. h; e9naet
Sspeo'of Tor mat section TO The d s NE
service he told Inc II was no use II Impose any rnc on
inat enlcayored 70 lhe dues nearly just he as
Ge sa9 ~ ne, Ssr 'ns nav es5 TsIs s9mSmes al
q How long MAS Giles A. Smith Second Assistant
Po,tmaster.General2 Ale Vas appointed In March
Or April, lsee end resigned on October 10. is1l Mr..
that Gen Smith WAS IN ofnce.
nis m Tie atiartmalt suppose? Ait Was fled.
Sir s.cki,s tells ne 4 las disappeared that It never
f.ya sa3a% 6sys ;sS, q Ials$it with Floyd. aud
with Woo4nnrd and somebody else Sere invesIIgatnR
the Peters frauds. STATE how II happened inst you
ana Mr. Woodward and Mr slckles were making in
ordered you to makCthC investigation, and when was
It? A.-Mr Woodward and myself have been friends
since have known each other, dating from 1894.
In September, 1874, Mr.. Woodward was promoted
10 the pO iiion Of Chef special Agent and
brought TO Washington. MIR. Woodward and myself
had previously talked IN relation to frauds In other
see ne, ana said that by order Of tho Postmaster.
General he was investigating frauds In the
Post Once Department, aud wanted my assist.
ance. told Mr. Woodward that before | gave
upon the record that had given MIR. Luttrel ana Mr.
Stone, and Nj Holman, members OF Congress facts in
relation 10 frauds penetrated In the department. for
months before Ia the spring OF 1874 that had given
cost NO ny placer that II that fact was
stlll TO cost me my place wouli
seek TO expose those frauds during the next Congress
II GOV Jewcll proposed TO expose them himself and
10 Democratic memoers Of this House, both hs and
Mir. MOOdw rd should have assistance and le use
Of all the information that had. Mr Woodward replied
that The PoelmasterGeneral Intended TO break up all
facts to the puoc that he did not intend TO 20 ck
into Mr.. Creswels administration OF the Department
TO develop fraud or 10 hOd clerk responsible for
acts done under Mr. trssWeJ WIN that understand,
MIR. Woodward that n he would take the
copy OF InK NKw YORK SUN containing statement
Of the frau lulent contracts between Memphis ana
Yicksburg the data for which had been furnshedby
Mir. stone member OF Congress to the correspond
ent and additional facts Obtained from tho records OF
the department by that correspond he would hDd
portion Of what ono OF the Ring cont actors had
done MIR. Woodward took the paper aud eK.
lu Department and 6ltd the