The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-01
POST OFFICE CHEATS.

THE LITTLE GAME OF THE COUNTRY POST
MAsTERs--THE LOSS TO THE GOVERNMENT
The HERALDs exposition OF the manner in which
tho United States government has OF late years bccn
swinded out OF fully one half Of the legitimate pro-
ceeds from tho postal service in the larger cities OF tho
United States has already created an excitement
which can only, Is believed be reduced
by change in tho present very loose
law, against which both Postmaster James and
his assistant. Mr. Henry G. Pearson. express their
opposition. In oraer TO ascertain from merchants
what proportion OF their returns from out-oi-town
localities for goods sent in cash postage
stamps the reporter visited large number OF estab-
lishments having business East, West and South. In
many OF them there was positive dissemination to
give any facts whatever. There some, however
who willing 10 be frank In that regard and from
such sources the reporter assured that In very
many cases their customers In New England, in tho
West and In some cases in the South sent
them instead OF cash bills, very free proportion
Of postage stamps which they Of their
business. II was not, however, until the wholesale
merchants here, ascertained, through the HERALD
now m s proas mere was ~ procuring postage
fully how extensively the government was wronged
by the cneat which has rpened into regular ness
In order TO understand clearly the enormous extent
to which the government swindled, without positive
proof OF criminal act, the reader must understand
that the fourth Post Offices of tho United States
number more than 10000 while the whole OF
them do not greatly exceed 81 000 The fourth
rate Offices take advantage of the present
peculiar provisions of the law their full
extent They allowed, in accordance with the
business done, from forty to sixty per cent
profit on the sale OF stamps This has proved to DO
Vicious opening for psst through
out the county tor as has been shown, they buy az
tho discount named from the Washington office, and
then sell to all who desire to buy, In business way,
their superOus stock, dividing the profits In any way
which may be arranged
AMOUNT BUSINESS DOM.
It Ia enough to state that both Postmaster James
and his assistant, Henry &. Pearson, that
fully fifty per cent of the carrying done IRON here
represented In postage stamp sales tor the simple
class realize, at half rates the other hall going
on their privilege 10 sell government stamps.
that the law giving such enormous percentage profit
solely because they were not In position fairly,
TO receive much money from the Office they held.
Secondly, that the law itself IS enabling country
postmasters, and storekeepers who choose tako ad
vantage OF the possibility OF cheating the
government, to do business at expense 10
the government OF fully twenty per cent below
their fellows, SO long tho wholesale dealers hore,
Philadelphia, Boston, Chicago, ST. Louis and else.
whero arc willing TO be party 10 the cheat That
there is need Tor change In the law Is elt TO be APP
parent among the salafed posnasers throughout tho
country, and they are Tree expressing their hopo
that the present Congress will do at least
lessen the wrong to the which now exists