Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-09-30
STUPENDOUS FRAUDS.
TIE STARR0UTE PROSECUTIONS.
Report Of the Committee on Expenditures
J" 'ne Depnr'ment or Justice Compieted-
An Exhaustive Document showInx Up th,


service IN Its Enormities.
lby telegraph to the D.pa,chJ
WAshiN0ToN, September 29.-The Com.
mute Oh expenditures In the Department.
OF justice. which, during the last session OF
congress investigated the star.roile prose-
cu'ions' hos completed It's report for sub
mission 10 Tue House on reassembling.
1he report Is signed by Mcssrs. Springer
waa'rinanl' Van Altyne. Hemphiil, Fyan.
and crisp, Democratic members OF the
committee. II says:
During the Hayes administration certain
contractors In lthe star-rou,c mail service
entered into consplracies 10 dcirsud the
oo'efnhe"i IN the letting and PERFORM
ance OF mai contracts. The contract dlvi.
son OF The Post-Oiiice Department Is under
tne supervision Il the Second Assistant
Postmaster-G General
during The letting and performance OF
tne iraudulent mail service Thomas j.
Brady filled this office, and the frauds upon
this service could not have been committed
without his knowledge, cooperation, and
assistance.
The attention Of the country 10 the star.
route frauds was fret attracted by the in
creased expenditures under the Brady sd
minstration. For that service there was
large deficit reported to the Forty-sixth
Congress, and the deficiency appropriation
was asked for for The purpose OF meeting
the largely-increased expenditures.
Partial investigation into the frauds
WIS made by a subcommittee OF the Com
mlttoe on Appropriations, and = report all
verse 10 the granting OF the increase re-
quired by the Post.Ofce Department was
made 10y the committee, but 80 great was
the pressure OF the star-rouie contractors.
their agents. and attorneys, backed by the
powerful influence Of the Post-Oillcc De-
plTtment, that an appropriation was lde
to meet large part OF this deficiency.
The fraudulent contractors thus OBJ
tanned a new lease OF power. and con-
timed to draw immense sums from the
Treasury for fraudulent and fictitious SER
vice.
Reference is made 10 the inauguration OF
President Garfield and bis appointment OF
T.. l.. James 10 the master-Gencrllship,
who entered upon the duties OF his Office
with the determination TO reform the abuses
and run the selyice OH strictly business
principles.
The report continues: President Gar
field was Of the opinion that there had been
extravaganza il not corruption in the de-
partmcrt. and he directed James 10 pro-
Ceed with thorough and exhaustive inycs-
t'gaiiGu.
A review is made OF the efforts OF p. II.
Woodward. who, as confidential agent,
was given the details OF the investigation oi
q tatulatcl statement Of the cost OF ninety
iLrte routes; Of the removal Of Thomas J.
Brady and his chief clerk, John /. French;
al Tie sending Of pOst-Ofce inspectors into
the West and southwest to investigate the
star routes upon which increases were most
glarmg; OF the testimony OF Montiort G..
Rcrdell. which the Attorney-Generll did
not realize the value OF TO the Government,
and allowed Eerdell to return to his old a..
Sociatcs without securing his papers or hs
iilidayit, and whose credit Us a witness
subsequently was much impaired by the
contradictory sfildayits made under the in
iluence Of his former employers; and OF the
report OF \. W. Gibson on the general SUBJ
ioct 81 star-rOllte frauds.
The reports prepared by Woodward.
the committees report SAYS, and the re-
ports OF the poSt-ofiice inspectors made I'M
dor his direction, The report OF Gibson,
and the testimony OF witnesses before your
committee show that glaring and stu
ptndOus frauds were perpetrated on the
Government in the stir-rOute mail service.
and that not only the contractors, but that
many other persons in high cflicial position
in the Government, were either crimlnsliy
cogrzant OF the frauds or guilty partici-
panis.
The exact amount out OF which the
Government was deirluded in the star
route mail service during the Hayes Adj
mini>iratIOn can never be accurately
known.
Henry u. Lyman, the present Second
Assistant Postmaster General, submitted 10
YOUR committee a statement showing the
number and termini OF forty routes, the
names Of the contractors, and the amount
paid for the expedition less fines and de-
ductions for failures TO perform the expo
ditlon. The expedition on these forty routes
was obtained through fraudulent represen-
tatlons or false affidayits, ana the aggregate
amount estimated 10 be due the Govern
mont on account OF 0vcrpayments or fraud
uent service was S2l, 72l 80, while the num-
Der OF routes upon which the fraudulent
service was proven amounted to ninety
three.
I'm case civil suits are brought against
lie contractors TO recover oyerpaymenfS
on account OF the fraudulent expedition,
the amount the Government would claim
on forty routes i. the sum Just mentioned
above.
No estimate has been made by the Post
Office Department OF the amounts due
upon the forty other routes implicated IN
the fraudulent transactions. The whole
amount out OF which the Government was
defTaudcd i'm the Star-route mail service
during the HAYES Administration will eX-
coed four million Of dollars.
The number OF routes leightecn) con.
trolled by the Dorsey combination are
cited, showing the amount OF the Increase
secured.
Thereport says: The evidence showed
that the receipts from the offices on these
routes for mail matter carried over them
were uncomfortable in comparison with
the vast amount Of money required for SER
vice on the Mineral Park aud Pische route,
which was expedited so rs to cost about
ST.. 1000 per annum.
The omolGments OF all OF tho offices on
the route were but SOL per annum. and
this amount after the expedition ran down
10 Sj.9i.
During thirty-nine days it appeared that
not a single letter or paper passed over tni,
route. although the Government was pay
ing nearly $4,000 per year for carrying the
nail.
ON another route it appeared that the
contractor carried the entire mail in the
leg Of his boot over the mountains aud re-
ceiyed $4,000 year for the service.
The original pay OF the contractors on all
Of these routes was 2ll.13j year. IL was
increased so that il became S4is,GT0 year.
The revenues from the offices depending
solely upon these routes amounted the hrst
wear 10 SIO.2g7: in the second year to
S13.lGs, and in the third year to 81, G22,
actually diminishing during the third year,
when the pay for the service was greatest.
The Government was paying at that time
nearly S450.O0 year for CARRYING mails to
offices that Welded less than si2, 900 OF reye-
nue..
Other expenditures are cited, on one oil
which the speed At which the series was let
was one mile and eight hundredths per
hour, the time being much slower than q
horse could walk.
Relative to the route from Los VEGAS,
New Mexico. to Vinita, in the Indian Ter
ntory, the report says: The pay begun
at &C., $50, was increased To $685. per
annum. and that the post.oitice inspector
reported that some Of the offices could nol
! be found, and that several others miS u a,
we'll not have been found; that Bliss tesilled
| that these offices were all established on Inc
recommendations OF ex-senator Dorsey, ana
that Woodward testified that the net reyc'
nue. derived from all the Offices which
depended exclusively for their mail supply
| on tins route reached the sum Of Sljl loi
the year ending June 80. 1873; S-lG 10!