Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-05-10
From tie st, Adams Messenger, March 81, l576.
Mr.. BarioW's Western Mall Contracts.

|
Low, NJ KIDDEN AND S. $. HuNrLEY-How
STRAW BIDDING BECAME CUSTOM AND CON
| TRACTORS WE'RE SUBJECTED TO BLACkMAIL-
THE COST OF PROTECTION.
The N. Y. HeTdlrs Washington special re-
He testified that the firm in several instances
last year bought off lower bidders for mai
contracts in order to obtain them at the firm
higher figures, but denied that any money
had ever been paid or loaned by him or his
partners to any official in the postofiice de
partment. He admitted i'll reply to questions
that he had loaned considerable sums, moi
exceeding $50. 900 in the aggregate, to Gen.
eral Morgan l. Smith, brother of Giles A
Smith, then second assistant postmaster
| general but swore that these loans were not
made for the purpose ofintluencing the latter
he 1.-THE witness) did not believe that Gen
Smith had any influence with his brother
Giles. In reference to further inquiries, the
witness stated that lie had loaned money to 4
good many people simply because he won ID
rather have their good will than their ill will
and not that he expected or believed they
would or could render him any assistance il
securing mail contracts. The firm had large
vested interests in stock, etc, on the various
routes, and it was in the power of disappoint
| ed bidders sometimes to cause them trouble
and great pecuniary loss by groundless
charges and Investigations, etc. He gave
some details showing how the firm had Sc
cured certain valuable contracts last year.
He paid to Grant l. Taggart of California
to Corbett Il Beekman, of Oregon, and to q
Alr. Blanchard. several thousand dollars to
withdraw their bids for the service between
| Rallinuf EalIfprnia anil Rnsahnrr
and he paid to Governor Thompson, of Ida
no, $3.50 for relinquishing his lower bid
on the long route from the Dalles, Oregon, to
| kelton, Utah Mr.. Barlow swore that he
never made any improper suggestion to any
government official and never asked nor ex-
pected any man to whom he gave or loaned
money to convey any such suggestion to q
| government official He was not RESPONSE
bic for any improper act if any were COM
mitted by any party to whom he had ever
paid money. They must testify themselves,
and he had no objection to their doing so.
| He had employed Mr.. Earl to act as an attor-
ney for him before the department during
his absence from Washington. He admitted
| that the fact that Mr. Earl had formerly been
law partner of Postmaster G aneral Cres-
| well partly influenced him in making his Sc
| lection OF an attorney, on account of the
latter's facility of access to Mr.. Creswell and
his ability TO obtain information affecting his
interests, but he raid him less than 5000
in all for his services. His employment com
menced after he ceased to hold the office OF
| assistant postmaster-general.
The n. Y. Iinisss special speaks of Col.
Mckibben and his testimony as follows The
testimony of Col. McK:bben was exceeding
ly interesting and important, as unravelling
| the mysteries of the combinations which con-
troll and b.a mail 80, h.
Western country. Col. McKibben's career
has been such that he was enabled to tire at
this subject with great minuteness and
shrewdness, and with seeming candor. He
had been a member of Congress from Cali
fornis, a lawyer of distinction on the Pacific
coast, an officer OF the army, and n mail con-
tractor, thoroughly posted upon all the tricks
and traps OF the Western mail service. He
is fine looking. well dressed, and has n suavi-
| ty. dignity and GOODNESS. He testified that
he had instigated the investigation of 1872.
| and had written the report of the minority
of the committee, the three democratic menu
bers, Messrs. Randall, Van Trump and Car
| roll, and had furnished the facts and direct
| ed the sources of evidence for that examina-
| ton. He said that his quarrel was with the
postofice department at that time, and in the
investigation he desired to break up certain
| combinations that We're against his and other
| interests He said the investigation had been
started by himself and Mr. Lockwood, a
Western mail contractor, and Col Farrar,
who afterward became the counsel for Messrs
| Barlow, Sanderson i Co, received from them
| $4,000 to stiiie the investigation.
Immediately after the investigation of 1872
Mr.. Barlow retained the witness rs his gen.
eral counsel. at Il salary Of $50, 900 year, to
look after and manage the affairs of Barlow,
| Sanderson u Co. in and about Washington.
He said that he had also been for number
Of years the counsel of Gilmer & Salisbury,
but did not state the amount of salary re-
ceived. Gilmer Salisbury and Barlow.
Sanderson 4 Co.. controlled great portion
of the mail routerof the West, and the wit
ness represents the interests of that immense
combination. He gave to the committee a
minute description OF his actions in opposi-
ton to several bills introduced for the regu-
lation of postal contracts He gave his views
very fully, and with an appearance of can
| dor at the request of the committee upon
the best means OF preventing the straw bid
ding and the frauds which had crept into the
Western mail service. He said that the pres
ent laws were in the interest OF straw bidders
instead of against them, by imposing such
restrictions to make bidding by anybody
except largo operators almost impossible.
stringent laws there was very little if any
straw bidding, but that such restrictions had
been thrown around and conditions imposed
upon those who desired to bid upon the mail
service that all sorts of tricks and combina-
tions were resorted to to defeat the operations
of the law He said that the postmaster
general had the power. in very great de-
gree, TO stop straw bidding whenever he saw
tit. As he had agents constantly upon the
lines, he had some means of ascertaining
what the mail service was worth upon any
given route. He said that the present post
master-general had stopped straw bidding,
in II very great degree, by ascertaing what
service was worth upon any given route, and
then saying that 1t could be done Tor that bid
or none ut all.
Col McKibben did not seem to have been
very well pleased with the administration of
Postmaster General Creswell, for he said that
he didn' administer the laws properly, and
he thought 1t cost the government great
deal of money that he might have stopped.
He said he made no charges of corruption
against Postmaster General Creswell only
that he had loosely administered the laws
He seemed to think that SALARY of $50, 900
a year for one mail-contracting firm and So
900 for another was only fair compensation
for the services that he was able to render
iHtL III tLt COHuuNt VI DuSlutsS. he
said his service and knowledge were worth
great deal Of money to men engaged in that
business. He knew nothing. whatever, he
said, about any money being paid to any post
Office official, clerk, or any official of the gov
eminent, for anything whatever in fact,
knew nothing of any corruption in and about
the government offices.
The Iribme'S special OF the 23d, saws of
Mckibben that he has appeared IN and about
Washington IN various capacities as mail
contractor, instieator of Investigations, and
parliamentary agent. His testimony has
been characterized by zeal to injure the
Postoiiice Department, but the main facts
thus far, to the extent that they do not reflect
discredit upon Democrats. are susceptible of
explanation. The drift of the testimony of
the last week is to show that about Sl4O. 900
was expended by Mr. Barlow, the great mail
contractor. TO protect his interests from COM
petition and from the investigations instiga-
ted by his opponents. That money was dis
posed of about AS follows. for of its disburse-
ment no denial IL made To the Farrar and
Mckibben combination 5000 McKibben
personally, 5000 n. Wilson, Legitimate
attorney fees, $4,000; Hood, useful about
Departments. 5000 Morgan l.. Smith. a
loan. $4,000 buying bids, $4,000 ;Jere-
miah Black, Mckibben. and Paschal addi-
tional counsel fees, $1,000 total Sl3S. 900.
of the above sum $40. 900 was coiessedly
paid to suppress an investigation i'll 1872.
Yet Mckibben. to-day, testified that he gave
the names of witnesses who alone knew the
facts desired to be proved to Van Trump. the
Democratic member then of the Postoifice
Committee. 1t does not appear that these
names were communicated to the Republi-
can members of the Committee, and there is
no trace of these names upon the records of
the Committee. Farmr was II miserable fell
low who died in hospital of want and drink
While Mckibben himself was an active man
ager in the matter, he has no knowledge of
corrupt payments. The $780, 900 Mckibben
admits to have received from Barlow subse-
quently for services for six years as attorney.
There seems to be sufficient evidence to con-
clude that the $4,000 was Matchmaking
operation by Farrar. to which MIR. Barlow
submitted rather than have n public opinion
created that would force the Postmaster Gen
prnI N eyarcisa n 1iscrafinn given him in com