The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1881-04-28
STAR ROUTE. FRAUDS
Systematic Syxten, OF swindlfnE Fra
Heed by the Postomce Auth0rtties .


A Systematic syxten, of swIndlfng Frac;
Heed by the PostoHce Authorized at
WashinEtOn.
Under the direction of Postmaster General
James, an official Investigation has been going
on in. the Postofice Department, and as 2 re-
suit, frauds of the most glaring character have
been unearthed. A 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 232 miles.
Thisroute was let on July /, 1878, to Miner
Peck & Co., at 80, 900 per anpum for weekly
service. In August or September, 1878, the
route was sablet by the contractors to Isaac
Jennings, of st. Thomas, Lincoln County
Nevada, at $4;700 per annum,.or 81, 300 mora
| than the contract price. Soon after receiving
the sublet, Jennings was requested to get up
petition for tri-weekly service, but refused to
do SO on the ground that the proposed increase
was wholly unnecessary. Notwithstanding his
refusal, however, to make a movement to
secure increased service, he was surprised to re-
ceive from Washington a subcontract calling
| for tri-weekly trips, and raising the pay to
$12, 800 per annum This is explained by the
through their influence with the Postofice De-
partment, secured an increase to tri-weekly
service and had the pay raised to S22, 800 per
annurn. Thus, it will be noticed that Jen-
4ings, who was performing the service, received
of this increase only $12, 600, leaving 80, 700 to
be divided among the principals. In July,
1S79 or about three months after the first in
crease was made, the service was still further
1 l;o;ko
nings and without his knowledge, to seven
trips per week, and the yearly pay was raised
to $50, 900. When this last increase was made
| Jennings was ordered to put on daily service at
the rate of 200 per annum, thus leaving
| $24, 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 was made Jennings was not informed
of the fact that the department, in addition to
directing theincreased trips, had also expedited
| the service.
| About three months after the transfer to
| Dorsey, Jennings was informed by M. E. Rie-
dell that the schedule time had been shortened
/ to sixty hours. Riedeu was clerk and agent of
| Dorsey, and in order the more efectually to
| carry out the fraudulent purposes of the ring,
Dorsey made contract with Riedel at the full
contract price named aboye,- and filed this
I 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. $12, 600 for the tri-weekly and
$2S, 600 for the daily SERVICE which was 5000
| per annum below the sum fixed by the De-
| partment for the tri-weekly service and S24, 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
Representative Daggett, of Nevada, with the
request that it be filed with the Postoffice De-
partment MIR. 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
fines, it seems, were. imposed because of Jen-
nings' failure to- perform the service on the ex-
pedited schedule, of which he bad had no no
tice until he was 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 number OF
| signatures 10 protest against tne frequency
and expedition of the service ordered by the de.
partment. There was no necessity whatever
for this increase, as the route was through a
wilderness, and the number of letters carried
over it at any time did not average three pei
week.
Arrived at Washington RiedeH 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 Sc, 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 $500
his principal claiming that the balance wai
consumed by fines. Jennings having been thu
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 posta
authorities, not supposing, Of course, that thu
very persons from whom he expected protec
ton and redress were parties to the practices
by which he had been defrauded He had NJ
rights whatever which the Postofice Depart
msnt was bound to respect, for the reason tha
he was unknown to them, his agreement neve
having been placed upon the files of the de
partment.