The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-14
CRISIS OF POSTAL SCANDALS
EXPECTED TO RE REACHED IN
THIS CITY THIS WEEK.

Purchase OF Time Clocks. Cash Reg.
listers and CanceilinE Machines to ne
In, tSated--A Number OF Prominent
Men Said to BE Impicatc cd In tho Graf.
WASHINGTON, June 13.-General interest
in The Post Office Department scandals has
been temporarily transferred from WASH
ington to Now York While high officials
of the Department were reticent to-day in
discussing the present status OF the in
vestigations and the results that are ex-
pected, it can he stated authoritativey
that those in charge of the inquiry believe
that the crisis of the scandals will be reached
early in the coming week. The develop
ments that are expected--and they are said
to be the most sensational OF the entire
scandal inquiry-wil probably result from
the action of the Federal Grand Jury which.
according to present information at the
Department, will meet in New York on
Monday afternoon.
Just what matters have been brought to
the attention of the Grand Jury for action
cannot be definitely learned but they are said
to concern contracts made for the purchase
of time clocks, cash registers and cancel
ing machines in general use IN the postal
service by the Salary and Allowance
Division of the Department. Principals In
the various deals are said to live in New
York, and hence are within the jurisdiction
of the Federal Grand Jury of that State
1t was also intimated at the Depart
n,ent to-day that the Investigations into the
alleged promotion syndicate" which, it
has been charged. operated from Washing
ton and controlled promotions in many
of the big offices of the country, and par
ticularly ip New York, had resulted in re-
markable disclosures, and that but for
the fact that the investigating authorities
desired to secure evidence against every
one of the principals in this alleged gigan-
tic swndle, arrests would have been made
some time ago.
1t is freely predicted at the Department
that when the 4crisis" does come, and 1t
il said to be only matter Of few days.
wholesale arrests will result and the devel-
opnlents will be such as to astonish even
those who have contended that the Post
Office Department was rotten in all Of its
branches.
Much interest has been manifested In the
Department in the cash register ccntraots.
concerning which 80 manv SERIOUS charges
have been made, and this vas brought to
fever heat to-day when it became known
that a payment OF more than 81, 900 due
to the cash register company In question
had been held up at the Department. It
was even intimated that the facts In this
| case were such that, the payment would
| probably never be made. Interest In this
| phase OF the case has not been lessened
| by the fact that it was during Inspector
| Oldfclds investigation of this particular
matter that he had a personal encounter
with Assistant United States District At
torney ErnsstA G, Baldwin. brother-in-law
controls the company which makes the
machines. Baldwin liz member OF the
| law firm of Boothby Il Baldwin, counsel
| for the cash register company. Miller
has long been business associate OF Abner
| Mckinley
It is said that the cash register scandals
implicate a number Of prominent men In
| a system Of graft connected with the sale
of these registers, or automatic cashiers.
as they are sometimes called, to the Post
stallment in the New York Post Office and
elsewhere Department officers here de-
cline to discuss this phase OF the case, save
to say that sensational Developments are
expected within short time. A prominent
officer Of the postal service said to-day:
1t is useless to speculate a. to the in
dividuality of those whose arrests are ex-
pected in the near future. Some arc
that their names have been mentioned in
connection with the present inquiry, while
the arrest of one or two others viii come
with the force Of an absolute surprise, and
do more than anything else to convince the
public generally that the investigation now
In progress is going to the bottom, and that
the bottom Is good way down.
After conference this afternoon be-
tween Fourth Assistant PostmasterG General
Bristow and Superintendent Fosnes Of tho
free delivery division, Miss Ina Liebhart,
chief clerk to ex-Superintendent Machen.
was sent for and subjected to q rigid OK
animation Miss Liebhart, in addition 70 her
regular Department duties, attended to .
great deal of Machen's personal oorreSpon-
dence and it was thought that some things
of interest and importance might be learned
from her. After the examination, Fourth
ASS stant Postmaster-General Bristow
seemed we'll satisfied, but would say moth
ing as to what he had learned.
Just at this time the greatest mystery
surrounds the case of Postmaster Van Colt
of New York: Evidently, his adninistra-\
ton is under fire, but no information - to
Department. All nqurers are referred to
MIR. Van Cott and he in turn says that the
Department at Washington is the only place
to apply.
One charge against Mr.. Van Colt. that OF.
nepotism, Ia not so serious, in view OF the
Washington to find precedents among his
superior officers for his action In appoint
ing his relatives and wards to good places
on Uncle Sans payroll.
The Postmaster-Generals said this after
noon that he hoped to receive the report
Office, recently completed, in time to mako
public it's salient points within two or three
days. However, II there were delay In
receiving this report, he said, the other
papers in the case would he made public
as soon al they could be prepared.