The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-16
THE POST OFFICE FRAUDS,
MORE LIGHT ON THE FRd UDULENT
PETERSON CONTRACIS.
Tho Testimony Of n Burean Clerk who was
Asked 20 Resign because he Knew Too
Much About Thetn-Tyncr In with the Ring.


ASKED 20 Resign because he Knew Too
Mncb About Tbein-Tyncr In with the Ring.
WAsHINoToN Feb. 15.-The Committee
on Post Of1ces and Post Roads Yesterday exam
inod L. +. OBren. formerly clerk In the In
spection Bureau Of the department. He testi-
fed that In February, 1876, his attention was
called to the Peterson contracts In Louisiana,
and Investigation soon satisfied him To Il Peter
son was drawing $4,000 year for mail service
which was never performed. The law required
that tho mail contractors on a steamboat
route should be either the master or
tho owner OF steamboat, but Peter
son was neither, and one OF the letters
drawn out by O'Brien's inquiries from an official
In the New Orleans Post ONCE, stated that 1t
was Petersou's habit To call for tho mail him
self, take 1t down to the levee, and contract
with any casual steamer that might be going up
the river to carry II to Red River Landing, and
that he usually paid for such service 50. IL also
appeared that often there was no mail for days
at time.
when the end Of the March quarter camo
around. OlIrien, as inspection clerk Ia charge
OF that route, with others, was ordered In tho
usual form by Mr.. French, the chief clerk OF the
Second Assistant Postmaster General, and,
Olirien says, friend OF Peterson, to certify to
the perform nee OF the service for that quarter,
SO tnat tue contractor might get paid. 1his
Obfien refused 70 90 and later G Wth tho as, as
made up from the records against Peterson
what IL called In the department "a case"
showing that there should be deducted from his
pay for non performance OF service ABOUT $4,000.
7 hen followed the Interference Of senator Vest
IN behalf Of Peterson. and soon the papers In
the case were taken from O'Brien's custody by
the Chief OF the Inspection DIVISION, sir Ike.
and never returned, although, according to the
usual course, they ought to have beep returned
within twenty hours. Peterson's friends
In and out OF the department were very active
In trying TO get him paid, but O'Brten's record
stood I'm the way. At last Oh Oct. - Mr. Tyner.
the Seconc Assistant, called ON y lIricn aud
said that the Postmaster General had been en-
de vurtng to transfer him to some other bureau,
had decided to ask for his resignation.
O'Brien at once wrote 70 the Postmaster
General declining to resign position
which he had earned. he said, by metitOrOus
service during the war, and saving that no pre-
ferred dismissal so that he might appeal to
the President aud have an investig tiOn. Inc
Postm mAster- encral sent for him and said that
the letter had astOnished him az he had not
asked for the reslgnatlOn. Later, however, by
the advice OF "A friend, O'Buen rendered his
resignation. The Postmaster General accepted
II, to take effect Dec. /, with leave oi aosence
untii tnat time. No reason WIS assigned Tor
asking or accepting his resignation, and . lBrien
testified that he knew Of no reason except that
hs knew too much or talked too much.
In the course Of his examination he stated
boldly that he hld for some time suspected MIR.
Tyner, Second Assistant Postmaster General, OF
being handled by the Ring contractOrs-BarOw,
sanuersUn, and the rest also, that french was
very active Ia their interest, and had been IN the
haDit OF acting n life insurance agent, and
sucn had insured several OF the contractors.
lie also testified tnat there was general i'm
preston In the department that the corruption
In II had come In with Jrvswell and smith, aud
afterward ROutt O'lirien viii he examined
furtncr at tue next meeting of tue committee.