Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-01-07
MAIL CONTRACT SURETIES,

Wholesale swindles Practiced Upon the
Governmtnt by Boone, Dorsey and Gang
"A Remedy Of the Evil Sought of Con-
gress.
WASHINGTON, Jan. 6.---The president sent
to tie senate to-day the following letter from
the late postmaster general, with regard to
the responsibility of eureties upon bonds ac-
companying bids and contracts for mail SER
vice during the last four years:
"Postoffice Department, Washington, D.
c., January 8, 1882. sir: have the
honor to transmit herewith letter from Hon.
Geo. Bliss, special counsel Of the United States
for the prosecution of the star route cases, and
report of Inspector Tidball, detailing the re-
suit of most careful examination into ther re-
sponsibility of sureties upon bonds accom-
panying bids and contracts for mail service
during the last four years. This report seems
to show conclusively there has been imposed
upon the postofice department'not less than
$4,000 bonds sureties, which were, with
perhaps few exceptions, utterly worthless,
and were known to the parties who presented
them to be worthless. There is reason
to believe the same parties will present large
number of proposals at the letting of the mail
service west of the Mississippi river, which is
to take place on the 18th of this month, and
am advised the postmaster general would have
no authority to reject such bids, if regular in
form. Under these circumstances 1t seems
proper the attention of congress should be
called to this condition of its law, and change
be made by which some power may be Invested
on the department to dcbar from bidding per-
SONS who have hitherto been engaged In such
practices. And in order to make the remedy
effective at the next bidding, immediate action
on the part of congress will be required,
call your attention to the matter instead of
leaving il to my successor.
Signed. Very respectfully,
THOS. L. JAMES,
Postmaster General.
To the President.
The following is the letter from Bliss above
referred to:
Washington, Dec. 2O.-To Hon. Thos. L.
James, postmaster general-Dear Sir: / have,
as you requested me to do, examined this law
with some-care to see whether the postmaster
general has the right to reject bids for mail
service, regular in form, because the bidder
has been heretofore engaged in fraud upon the
government In presenting similar proposals,
in which the bonds required by law to accom-
pany them were In the broadest sense of that
expressive term "bogus," where bondsmen
were either non-existenr or worthless, and
where perjury or subornation of perjury
characterized every step in their preparation.
From the elaborate report of Inspectors It'd
ball and Shallecross, it appears that within the
past four years Albert E. Boone and his asso-
ciates have made 3,110 bids for carrying
the mails, involving SS,S04, 1852 of bonds. and
have obtained 296 contracts, involving $202,-
905 bonds. The bonds were and are, with pes
baps exceptions, utterly worthless. This ap-
pears, beyynd all question. The sureties
themselves now admit it and tell the whole
tale. Some of them are to-day in the govern
ments service. Independently of the admis-
sions of the sureties the record prove the facts.
The letting Of all the mail service west Of the
Mississippi takes place January z, when the
bids are to be opened. There will probably be
10000 or sc, 1000 bids. As the services COM
mences July /, the contracts must be divided.
So soon it would be absolutely impossible to
investigate the legal responsibility of the
suretes, even if 1t is held this is under the law
an open question. As / am informed now,
there is absolutely conclusive evidence that
Boon intends to food the department with
bids. The indications he is pursuing the
same system of bogus bonds.
Under the circumstances you ask me IL you
have the right to reject all of Boon's bids.
As lawyer, I do not think you have this
light. 1t seems to me clear there ought to be
some change in the law in this respect. If the
facts stated in this report of Tidball & Shalli-
cross were brought to the attention of the law
making power, do not believe there would
be any hesitation in making change. pro-
pose within day or two to make such use Of
some of the facts stated in the report as will
relieve you of any necessity to keep it from
the public. If, therefore, you concur with
me. suggest that before you go out of office
you transmit a copy of the report to congress
with a request for legislation. Your obedient
servant, GEO. BLISS,
Special Counsel.
ARREST OF TUE CULPRITs.
WASHINGTON, Jan. 6.-Samuel N. Hoyt,
John N. MINK, w. 8. Barringer, J.W. Dona-
hue and E. J. Sweet, star route contractors
and sureties in the alleged fraudulent bonds,
were arrested tonight and held for examina-
tion A warrant was issued for the arrest of
A. E. Boone, 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 prac-
tices connected with the furnishing Of star
route services.