Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-02-20
PosTOFFICE FRAUDS.

Chicago Tinas.l
WASHINGTON, February l5.-The tee,
| timony ELECTED before the postal com.
mittee to-day was the most sensational
and damaging thus far brought to light.
| Holblook's statements as to southern
contracts were more than confirmed
High officials In the department are inn
plicated, and even q word OF suspicion
thrown upon the White House. Edward
O'Brien an ex-employe OF the DEPART
ment, revealed what he knew of official
wrong doing. He had been q clerk in
the contract bureau, and brought some
startling charges to toe surface. He con-
6rmed by date and vouchers the worst
frauds charged upon Peterson, and piled
up Others which astoniahed the commit
tee. He tod particularly about the route
from Whits river to Vicksburg, and the
contracts in which Peterson had received
pay amounting to thousands OF dollars
without rendering any service to the
government in return. BE said it had
been the practice OF the department for
several years past to pay contractors for
services rendered without first receiving
the certificates of pCstmasters, as re-
quired by law, that such services
were rendered. During the time be
had charge Of the Arkansas service,
contractors in that division were in the
habit Of visiting Washington and COM
ing to the department on perhaps the
first or second day Of the month preced-
ing the close of the quarter, and through
the aid of Senator Dorsey receive orders
for their pay before the certificates from
the postmasters on their lines had been
sent in. Orders were sometimes given
upon telegraphing to the postmssters
for re quisite information, but often with
out dong this. PeteTson's pay, particu.
larly, was always forthcoming without
legal certificates. Barlow, HuOtly, and
the Baltimore and Ohio railroad compa.
ny are also named as having received
pay on contracts in q familiar manner.
He testified that about the time Of the
suspension Of Peterson's pay telegram
from Senator West, of Louisiana, was
placed on his desk urging the payment
of Peterson's claims. West had also been
seen personally at the department on q
similar mission. Peterson's pay had been
suspended because OF lack of the neces-
sary certificates from the postmastels
that he had fulfilled his contract. Peter
son, the witness stated, was regarded by
the clerks In the department as an I'M
mitigated fraud. He was backed by
Secretary Bslknsp, Collector Casey at
New Orleans, Smith, then assistant
postmsster-generaD, and others, who are
generally denoainsted the "White-
House ring" Because of his activity In
bringing 10 light PetsrsOn's frauds
O'Brien, the witness, was asked to resign
by the postmsster-genersl, but promptly
declined by letter stating that he would
make an appeal to the executive to have
his case looked into and SONS valid res-
con assigned for his removal. On the
following day the ostmsster-geDeTal
sent for him and asked him to Withdraw
his letter refusing to resign, as he had
never requested his resignation and did
not want st that time to bs embarrassed
with an investigation. Af.erwsrd, how
ever, on the request Of Senator Patter-
son, the witness was induced to hand in
his resignation.