The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-24
One Case Reported Where $50 Worth
Of Contract Work Was Done and a
Bill for $50 Presented.
LOUD NOT GUILTY OF WRONG
CHARGES AGAINST HIM PROBABLY
INSPIRED BY MACHEN.
Vigorous Denial by Edward c. Madden
of Any Connection with the
Carbon Paper Contract.
Special to the indianapolis Journal.

Special to the indianapolis Journal.
WASHINGTON, June Bon information
presented by officials in charge of the in
vestigation of the Postoffice Department
scandals, the federal grand jury here took
UP what may prove to be one of the most
important results of the general inquiry.
This concerns the contracts for painting
letter boxes with the aluminium paint. upon
which the firm of Cupper & Co.. of New
Haven, Conn.,, are the sole owners. Fourth
Assistant Postmaster General Bristow is
now directing his Investigations to deter
mine whether former superintendent Mach
en-, OF the free-delvery service, secured
the usual 40 per cent. 'rake-off" on con-
tracts with the Cupper. Company for paint
ing these boxes. 1t is alleged that the de-
partment paid extravagant prices for the
use of the paint on letter boxes and that
the men who did the work were carried
on the rolls and paid out of the revenue
of the postal service Since the investiga-
tion of postal service scandals became acute
many, postmasters have voluntarily written
TO the department alleging irregularities
in the manner in which the letter box
painting was performed by these special
agents. One postmaster wrote that a box
which. according to the specified rates,
would have resulted in a payment of $50.
The bill for the work, which was turned
into the local office. amounted to $50. The
postmaster protested. but was later forced
to pay the full amount on imperative or
ders from the department in Washington.
Postmasters who have volunteered infor-
nation are now i'm correspondence with de-
partment officials and the investigation au-
thorities expect to accumulate a mass of
evidence concerning the box painting con-
tracts which will result in early indct-
ments.
GRAND JURY SLOW
The federal grand jury continues to grind,
but results are not forthcoming. Irritation
continues to be manifested over the slow
movements of the legal machinery The
jury adjourned to-day until Thursday
Some consideration was given by the
Cabinet to-day to affairs in the Postofice
Department. but IL is understood no definite
action was taken. The investigation, il was
stated again to-day. would be pressed until
no trace of suspicion attached to the de-
partment. While absolute confirmation of
the statement is withheld, ii is reasonably
certain that Holmes Conrad former solicit
tor general of the Department of Justice.
and Charles Bonaparte. have been selected
by the Department OF Justice to assist the
district attorney in the prosecution of the
postoffice cases. Postmaster General Payne
remained with the President some time
after the other members of the Cabinet had
left the White House, but when ne left he
said his conference related wholly to ap-
pointment OF postmasters which he and the
President desired to go over together. He
said no action had been taken looking to
the reopening OF the case OF James T. Met
calf, the dismissed chief of the money order
bureau.
CASE OF Mr.. LOUD.
The report that former Representative
Eugene v. Loud. OF California, was in
volved in transaction which suggested
possible collusion with department officials
created a good deal OF discussion in Wash.
inston to-day. Mr.. Loud was for many
years chairman OF the committee on post
Offices and postroads and as a result of
bitter fight he made against a bill provid-
ing increased salaries for letter carriers he
was defeated for reelection. If the informa-
tion In possession of the postal authorities
is correct the Loud scandal is a fash in the
pan. So far as Postmaster General Payne
and Fourth Assistant Bristow are advised
there was no crookedness in the sale by
the Postal Improvement Company of a let
ter-box device for indicating the hours of
mail collections. At the same time II is the
purpose OF the department to thoroughly in
vestigate the matter. This step was de-
cided upon before the publication of reports
that the contract had suspicious appear
ance. From what can be learned at the de-
partment. Loud's connection with the mat
ter can be easily explained. 1t is the prac-
tice of Senators and Representatives to at
tend to the business or individuals and COM
panies having contracts with the govern
ment- AS a rule the connection of Sena-
tors and Representatives with such mat
ters only goes as far as a recommendation
OF individuals or representatives of COM
panies and guarantee that they are of
good standing Fourth Assistant Bristow
said to-day that II was very unusual thing
for-nembers OF Congress to do anything but
pre- ant constituents with the suggestion
that ehey be given a fair show This is be-
hevec TO be about the extent OF Mr.. Louds
connection with this particular transaction.
1t will probably be several weeks before
Mr.. Bristow will be able to make an inves-
tigation Of this case.
That August W. Machen and other inter-
ested persons inspired the story involving
Mr.. Loud in the scandal is generally be-
lieved by the postal authorities To Machen
has also been traced the report that several
postoffice inspectors were parties in a min
ing enterprise and that they devoted large
part Of their time to soliciting subscriptions
for the stock Machen is said by his friends
to display all his old-time nerve and cour-
age. He Is said 10 be in fighting humor
apd that instead Of laying down II Is his