The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1881-04-28
STAR ROUTE FRAUDS.


Heed by the Posiomce Authorities nj
Washington.
Under the direction of Postmaster General
James, an official investigation has been going
on in the Postoffice Department, and as a re-
suit, frauds Of the most glaring character have
been unearthed. case that illustrates the
boldness of the fraud systematically prac-
ticed during the last four years in the manage
ment of the Star Postal Routes is furnished by
the route known as No. 40, 104 and running
from Mineral Park, Arizona, to Phoebe, Nevada,
a distance of 1872 miles.
This route was let on July 1, 1878, to Miner,
Peck Co., at $4,000 per annum for weekly
service. In August or September, 1878, the
route was sublet by the contractors to Isaac
Jennings, of st. Thomas, Lincoln County
Nevada, at "a, 700 per annum, or 81, 800 mora
than the contract price. Soon after receiving
the sublet, Jennings was requested to get up
petition for a tri-weekly service, but refused to
do so on the ground that the proposed increase
was wholly unnecessary. Notwithstanding his
refusal, however, to make movement to
secure increased service, he was surprised to re-
ceive from Washington subcontract, calling
for tri-weekly trips, and raising the pay to
S12, 600 per annum. This is explained by the
fact that in April, 1S79 the original contractors,
through their influence with the Postoffice De-
partment, secured an increase to tri-weekly
service and had the pay raised to S22, 800 per
annum. Thus, it will be noticed that Jen-
nings who was performing the service, received
of this increase only S12, 600 leaving 50, 700 to
be divided among the principals. In July,
1879, or about three months after the first in
crease was made, the service was still further
increased, without any solicitation from Jen-
nings, and without his knowledge, to seven
trips per week, and the yearly pay was raised
to $50, 600. When this last increase was made
Jennings was ordered to put on daily service at
the rate of $3.50 per annum, thus leaving
S24, 900 per annum to be divided among the
principals. Before the route was increased to
daily service the contract was transferred from
Miner, Peck & Co. to J. w. Dorsey. When the
change made Jennings not informed
of the fact that the department. in addition to
directing the increased trips, had also expedited
the service.
About three months after the transfer to
Dorsey, Jennings was informed by M. E. Rie-
dell that tine schedule time had been shortened
to sixty hours. Riedell was clerk and agent of
Dorsey, and in order the more effectually to
carry out the fraudulent purposes of the ring,
Dorsey made a contract with Riedell at the full
contract price named above. and filed this
agreement at the Department. After making
the nominal contract with Riedell, Dorsey
made an actual contract with Jennings for
tri-weekly and daily service, specifying that he
should be paid S12, 600 for the tri-weekly and
S2S 900 for the daily service, which was so, 700
per annum below the sum fixed by the De-
partment for the tri-weekly service and $24, 900
below that fixed for the daily service. Jen-
nings acted in perfect good faith, and was ig
norant of the transactions between Dorsey and
his clerk. The agreement made between Dorsey
and Jennings was forwarded by the latter to
49,, l. II
| request that it be filed with the Postofice De-
| partment. Mr.. .Daggett Immediately upon the
receipt of the agreement left it for filing. For
the service of the first quarter under the
| tri-weekly contract, Jennings received his full
pay according to the terms of the con-
tract. At the expiration of the next
| quarter, however. he not only failed to receive
| the pay due, but received notice from the de-
| partment that fines had been imposed for his
failure to perform the service, and that instead
| of the government owing him 81 900 he was
| the debtor to the government, by reason of the
| fines imposed, in the sum of $1,000. These
| fnes it seems were imposed because of Jen-
nings' failure to perform the service on the ex-
| pedited schedule, of which he had had no no.
| tice until he informed by Riedell as above
| explained. Not comprehending this method of
| doing business, and being startled by the large
| pecuniary loss which threatened him, Jennings
| at once proceeded to Washington. Before
| leaving the West he obtained a number of
/ y
and expedition of the service ordered by the de-
| partment. There necessity whatever
| for this increase, the route was through a
wilderness, and the number of letters carried
over it at any time did not average three per
| week.
| Arrived at Washington Riedell ascertained
| that Jennings intended to file this protest with
| the Department, and in order to prevent such
| damaging testimony being made part of the
public records, he gave Jennings SO, 500 not to
place the protest on file. In the meantime,
| however, Riedell received from the govern
ment full pay, less the penalties, all of which
was charged to Jennings. For the two fol-
lowing quarters Jennings was paid only $3.50,
his principal claiming that the balance was
consumed by fines. Jennings hdving been thus
exhausted, the route was sold by the owners
to Salisbury, Gilmore & Co. Jennings re-
manned in Washington, with the expectation
that he would obtain justice from the postal
authorities, not supposing, of course, that the
very persons from whom he expected protec-
ton and redress were parties to the practices
by which he had been defrauded. He had nc
rights whatever which the Postoffice Depart
mont was bound to respect, for the reason that
he was unknown to them, his agreement nevel
having been placed upon the files Of the de-
partment.