The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-24
STOCK FOR CONGRESSMEN
IN MILRoLLAND AND ArxLLs's TUBU-
Ian DIsPATOH JOE. v"

IN MILBoLLAND AND 1rKLLs's TUBU-
Ian DIsPAToA JoB. "
scandal at the CspiteI-sesato Asked FOR m Ap-
preparation orSsss. OOO,a na 20 ne Asisea for
$500. 90. while the Coneern lie Peddnnr
rte Bonds on the Strength 81 nts Pul ana
GiviuE Away stock TO make sure THAT the
Pull Ho,ds-werk ors D,npsr-eIvinr Lesby.
WASHINGTON. Jan. GA scandal Of large
proportions hangs over Washington. The In
itiatory steps leading 10 an affair that suggests
tho Credit Mobilier and star route swindles
have already been aken. The scandal 10 tho
talk Of the corridors Of Congress and other spots
where statesmen c~onRregate. It concerns tho
effort Of the Tubular Dispatch company Of New
York, OF which John Z. Milhollhnd and ID. o.
Mills Of the New York Tribune arc tho chief
promoters. to mako q great haul on tho
United States Treasury. The Senate Com
mittee on Appropriations, OF which Mr.. ALI.
son OF Iowa 10 Chairman, 10 looking into the
matter. The Post Office Committee OF the
House, OF which Eugene +. Loud Of California is
Chairman. 10 also taking an active interest in
looking into what 10 transparently . huge grab.
Al a result. 1t was stated tonight. o thorough
AuNtbklkAtloh VI u Whoi0 10 pTOIulUCu
before the Senate Committee on Appropria.
lions and tho Post Office Committee of the
House.
The beginning of tho scandal was In the clos
ing days Of the Cleveland Administration
John e. Milholland of the New York Tribune
had joined hands with D. o. Mills and others OF
the New York Tribune crowd in promoting tho
fortunes of the Tubular Dispatch Company.
This company was to shoot the mails through
pneumatic tubes from the Post Office in New
York to the Produce Exchange and to Forty
second street. Cleveland was going out. He
was q dead duck. Prof. Wilson, Postmaster
General, was going out. He was o dead duck.
but Mr.. Milholland and his friends Of the New
York Tribune found O very eminent accessory
to their schemes In the person Of Charles Neil
son of St. Denis. Mo. Mr.. Nelson was Second
Assistant Postmastor-General under Wilson.
Milholland and his friends Of tho Tribune
haunted Washington In tho closing days Of
tho Cleveland Administration begging for an
appropriation Of $4,000 which was to start
the business Of the Tubular Dispatch Company
Of New York. Many applications were made
by Milhollsnd and his Now York Tribune
friends to induce Prof. Wilson to recommend to
Congress this appropriation. Prof. Wilson did
not like the scheme. He could not be induced
to make O specific recommendation to Congress
for the $4,000. He made only Q general
recommendation. which had no effect on tho
Post Office Committee OF Congress. and with
the close of the Cleveland Administrations the
schemes Of Milholland. Mills, and the Now
York Tribune crowd were defeated.
Nelson. Second Assistant Postmaster-Ge General
under Wilson, however. was still on tho earth.
He was to lose his job under the Cleveland Ad-
ministration. He had talked all he could to
Prof. Wilson In favor of o specific recommends.
tion for the $3.50. 900 for the Tubular Dispatch
Company. He was the friend of Milholland and
Mills and the New York Tribune crowd. So
when Nelson was superseded he was taken up
by Milhollsnd, Mills. and the New York Tribune
OUTFIT. and made one of tho chief men In the
Tubular Dlapatch Company Of New York.
whose oiIices arc In the New York Tribune
building oIpP Par row. New York. Before gazing
any further It may be well to call attention to
the duties Of tho Second Assistant Postmaster
General. The Congressional Directory thus
describes them:
The Second Assistant Poatmaster-G General has
charge Of tho transportation Of all mails. His
office embraces four divisions aud two offices,
viz;
The contract division prepares all advertise
ments inviting proposals for star, steamboat
possls, prepares orders for the award of con-
tracts. attends to the execution of contracts,
If new service or changes In existing service,
attends to all correspondence relating thereto,
and prepares statistics and reports OF all mail
service required by law.
Here was Nelson. In charge of matters of this
kind. egging Prof. Wilson on to give Milholland
and Mills and their Now York Tribune friends
an opportunity to dive deep into the Treasury of
the United States. To Nelson. very properly,
has now been given a place in tho Tubular Dis
patch Cotlpany. and he will probably be recog-
nized in a mCts substantial way for his continued
services TO Milholland aud Mills and the New
York Tribune people after the advent Of Post
master-General Gary. With the advent of Post
master-Genera Gary. Milholland and Mills. with
Nelson giving them tho benefit of his experience,
renewed their application to the Post Ofios
department for an appropriation of $4,000 to
start Milbolland's Tubular Dispatch Company
on Its road to fortune. PostmasterG eneral
Gary did not want TO make tho specific recon-
mendation for that amount or for any other
amount. He believed that his predecessor, Mr..
Wilson, had taken the right step In the matter
and he wished to follow tho example of Mr..
Wilson. Mr.. Gary hesitated and asked for time.
and put of action In the matter for a number of
months. Finally he made a specific
dalton to Congress that the 100000 should be
allowed to the Tubular Dispatch Company. All
that time Mlholland and his New York Tribune
friends fitted through the hurly.burly Of Wash
ington. and when Mr.. Gary made this recon-
mendation they threw up their hats for Joy
and had dinners.
Tho Tubular Dispatch Company In New York
opened fine offices In the New York Tribune
building In New York. and as soon as possible
established the pneumatic tubes according 10
their programme. Nothing much would have
been said about that matter. 1t was remarked
tonight, were II not for the fact that the Tubu-
lar Dispatch Company 10 now engaged in q
scheme to make q deeper hole In the United
states Treasury. Milholland has boon hero
dozens of times, giving dinners to Senators
anu congressman and to ex-SenatorS and
eI'Congressmen. Folks did not appear
70 understand what Milholland and
Mills and the New York Tribune people
were up TO until the other day. when 1t was OBJ
served in the Appropriation bill now before the
senate committee Of which Mr.. Allison Is Chair
man that a claim had been put In for 1925. 900