Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-05-16
STAR ROUTE SVINDLES.
It'd BIT SAYINGS BY POST HASTER
GENERAL JAlLES.
Suspicious Energy Manifested Against
the Steamboat Service--How Dorsey and
His Ring Operated--Valuable Papers
Missing From the Files--Mrs. Garfield's
Condition Slightly Improved--General
Capital News.
Star Route Serrfce sevinas.

Star Route Serctce SautnGs.
WASHINGTON, May 15.-The following is a
statement of the net annual saving in the cost
of star routes and steamboat mail service
under the administration of Postmaster Gen.
eral James: For the month Of March, S2l5,-
400; April, $S4 ,53l; May 1st to 18th, SIP ,032;
total, $412, ,034. This saving has been effected
without in any way crippling the service or
curtailng its efficiency, and has been made on
exact information gathered by inspectors of
the department, whe have carefully examined
the various routes. Much of the reduction is
the result of the labors of the commission sent
to Memphis to investigate the river service
ramifying from that point. Very consider
able additional reduction will be made by the
30th of June next, when useless service will be
allowed to lapse.
RING MANIPULATIoNs-OFFICI PAPERS DE-
sTRoYED.
NEW YORK, May 15.-The Times this morn
ing prints long story from Washington about
the star routes. It says: "Gen. James has be-
fore him no easy task, but he has undertaken
the work of overthrowing the star route rings
and exposing their villainy, with determina-
tion to pursue it to the end. By his side
stands Attorney General MACY Veagh, thorough
ly aroused by the enormity of the transac-
tions under investigation, and determined
to punish the guilty, wherever they are
found. These gentlemen are supported by in
structions of the President, who is deeply in
terested in their labors and who desires that
the ulcer shall be cut to the bottom with q
firm hand. The evidence which is accumulat.
ing in the hands of Mr.. James subordinates,
is to be submitted to the attorney general, who
already possesses some very interesting
material for use in the courts. That evidence
is preserved for use hereafter. The post-mas-
ter general has discovered since taking charge
of the department that
MANY VALUABLE PAPERS
which ought to be on file in the office of the
second assistant postmaster-g general, are mis-
sing. Among those which cannot be found
are the reports made by special agents in rela-
tion to some of the routes held by the rings
he manipulated for their benefit. Many of
these reports severely criticised the routes,
and threw much light upon the rings methods.
In most cases the agents retained copies of
these reports, and some of these
copies have recently been, secured
by the department. Brady completely
controlled his division. No one can tell how
many interesting documents he regarded as
unnecessary for the files. 1t is believed the
rings are relying upon the expected indigna-
tion of the people who have been served or
partly served by their routes. They hope this
Indignation will be manifest whenever the
service may be reduced or cut off ard mani
tested so strangely 1t will prejudice sentiment
in their favor. There are indications
some of the contractors are hard at
work endeavoring to 1prejudice people
in their vicinity against the postmaster gen.
oro1 op1 his rndartakinr The rinOs nav
discover inhabitants ofithe frontier, while they
desire mail facilities, are unwilling to be
swindled or aid other persons in robbery of
the peoples common treasury. The rings
are also undoubtedly reporting that the ex-
posure of themselvesswill be and old an almost
forgotten story when the next session of Con-
gress begins. In this they are mistaken.
THE FRAUDS
which were committed in the postal service
under Thos. J. Brady, were not confined to
overland stage routes on the frontier and in
sparsely settled Territories. According to
the last annual report of the second assistant
postmaster general there were November 10,
1880, in the United States, 1858 star routes
on which service was performed by men and
horses or mules. The annul cost of these
routes was S73,214.99. There were also 131
steamboat routes, the cost of which was
were absolutely worthless, and
large part of the money paid for them was
thrown away for the benefit of contractors
and those with whom the contractors are sup
posed to have divided. Since the beginning
of the new administration a special commit
tee has been sent South for the. purpose of in
specting the steamboat service there, and
making reports in relation to it. In accord
ance with the committee the service has been
- ,a,,fo 1,,f flnxo II
ready in possess ion Of the department reports
concerning the service. These reports
were made by j. G.. Reside,
special agent, and certified copies
of them were furnished to the Congressional
committee. He had been a contractor and
thoroughly understood the contractors. His
report created great anxiety among steamboat
contractors, and they came to Washington.
DORSEY
wrote long personal letter to Judge Key,
again denouncing Reside, saying he had a
well established reputation as professional
blackmailer. On the same day Dorsey direct
ed letter to Brady requesting Reside to be
forthwith recalled from Memphis, if any fur
ther Investigation of steamboat mail service
in the Southeast, but especially in Arkansas,
was desired. Gen. w. H. Eggerton, who is
thoroughly familiar with the country and peo.
pie, OF SOl. ID. Cul6l SptCidl
agent for the South, must be directed to make
the examination, as they are both men of in
tegrity and character, and familiar with the
subject which they are called upon to investi-
gate.
THE PETITION MILL
was set at work, and many letters were written
to counteract Resides actions. Senator
Dorsey sent in many of these letters for each
route. He most earnestly urged continuance
of route 29,095, which has recently been cut
off for Wiltshire, Ark, of those who had
signed some fifty proposed bonds in blank for
the Dorsey combination. As the surety made
an elaborate defense of the route against
Reside, the latter was appointed by Key, Sept
1, 1877, and was re-appointed one month later.
His commission was allowed to expire Dec.
81, 1877, although the commission of all other
special agents were renewed. From the letters
which had been addressed
JUDGE KEY,
1t appears the latter had told him his reports
were satisfactory, but he had been too Jealous.
Brady had told him he had no objection 10 his
reappoinment. Reside asked why he had been
left out. In reply Judge KeyE said Resides
work was finished and therefore there was no
demand for him. Brady, he said, had told
him he needed Reside no longer, and the post
master general adds this sentence, which is
amusing now: "The duty of the
department T. demands of it to
husband its resources and not exhaust them
by salaries which may be dispensed with.
In the foregoing narrative Reside appears as