The Portland daily press., 1882-01-07
POST OFFICE DEPAhIMENI,
Washinoton. ID. c.. Jan, 3, 1882.


Sir-I have the honor to transmit herewith
letter from Hon. George Bliss special coun-
sci for the United States for the prosecution OF
the Star route cases, and the report OF Inspec-
tors Tidball and Shallcross, detailing the result
of a most caseful examination into the respon-
siblity of suretes upon bonds accompanying
bids and contracts for mail service during the
last four years. This report seems to show
conclusiyely that there has been imposed upon
the Post Office Department not less than l3,0Uo
bonds the sureties upon which were, with per-
haps few exceptions, utterly worthless and
known to parties who presented them to be
worthless. There is reason to believe the same
parties will present large number OF propoS-
ais at the letting of the mail service west OF
the Mississippi river which takes place on the
7th of this month, and am advised that the
Postmaster General would have ne authority
to reject such bids if regularin form. While 1t
is impossible to properly investigate the re.
sponsibility of suretieS before the time when
the contracts must be awarded, under these
circumstances it seems to me proper that the
attention of Congress be called to this condl-
ton of then law and a change be made by
which some power may be vested in this de-
partment to debar from bidding persons who
have hitherto been engaged in such practices
and in order to make the remedy effective at the
next bidding immediate action upon the part
of Congress should be required call your
attention to the matter instead of leaving 1t to
my successor.
Very respectfully,
THOMAS L. JAMES,
Postmaster General.
Mr.. Bliss, in the letter to which reference is
made, SAYS Within the past four years Albert
e, Boone and associates have made Is, ITO bids
for carrying mails involving $8,0S4, 452 of
bonds, and have obtained 296 contracts, involv-
ing 1902 905 of bonds. These bonds are, with
perhaps few exceptions. utterly worthless
now. There is conclusive evidence that Boone
intends to again food the department with
bids. and the indications are he is pursuing the
same system of bogus bonds. Under these cir
cumstances, if you ask me if you have the
right 60 reject all of Boone's bids, as the law
stands do not think you have this right"
The report Of Inspectors Tidball and Shall
cross, which accompanies these letters, sets
forth that in 1877, Boone, then clerk of the
Board of Health in this city, associated with
himself number of well known mail con-
tractors, including John W. Dorsey, John r..
Miner, j. M. Peck, Alvin o. Buck, Samuel G.
Cabell and others, and began making bids for
the Star route SERVICE, putting in as sureties
men utterly irresponsible. The report OF the
inspectors gives with great fullness of detail
history Of these illegal transactions and proof
of their fraudulent character.
One of these sureties has made answer in
which he says the land he swore he owned was
decided to him BY Boone for the consideration
of 81 for the purpose of enabling him to 60 up
on the bonds. He acknowledges the entire
transactions to have been farce from Nov. l,
1877, to Feb. 10, 1881. Boone bid on 1854
routes and his aggregate bonds amounted to
49, 58, 1872. He secured 102 contracts (all OF
which are still in operation and most of them
having two and three years to run) requiring
bonds in the total sum OF $S0,3O5. The grand
result of the operations of Boone and his COM
bination may be summed up as follows: Total
number of bids, L, 410; aggregate of bonds ac-
companying proposals, $8, OS4 ,542; total number
- aOtc rod Otal mt nj
bonds required with contracts, 1902, 800. With
the exception of three or four persons who en-
tered as surety for Boone under the advertise
ment of Nov. 1, 1877, the sureties on all SER.
vice now in operation under contracts with
Boone, Buck, Cabell, Henderson, and Arm
strong are utterly Irresponsible.
Large numbers of these worthless bonds were
certified by D. B. Anger, postmaster, WASH
ington, d. c.. and Myron M. Parker, his as
sistant postmaster. With reference to Anger
and Parker the report says, I'VE are unable
to suppress our establishment at the course pur
sued by them. Certificates of responsibility
given by them were in direct violation of the
postal laws, and we are constrained to believe
they were easily imposed upon, otherwise we
should be compelled to accept the facts as evil
deDce of corruption"
With regard to the part taken by certain no
taries public of Washington in the execution
of these straw bonds the inspectors say:
"We have discovered grave violations of law
in this respect on the part OF James Nichcal-
Ian. james e. Waugh, and George f. Gra-
mere conveniences upon whom Boone, Miner,
Buck, Cabell and others relied for ready aud
needful assistance in perfectiDg schemes to inn
pose upon the Post Office department and the
public"
The report recommends the institution of
criminal proceedings against all the parties
on account of violations of the law committed
by them in obtaining the contracts at present
in operation.
Samuel n. Hoyt, John N. Minnix, w. S.
Barainger, j. W. Donohoe and e. j. SWEET,
Star Route contractors and sureties on alleged
fraudulent bonds, were arrested in this city to-
night and held for examination. A wsrrant
was also issued for the arrest of Boone, the
leader and manager of the so-called "Boone
combination" but up to late hour he had
not been found. The charges against the
prisoners are understood to include perjury,
conspiracy to defraud and other illegal