The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-30

LEaL were ISSUED III tHE uttlIl9 OIL EflCD-
ardson. A short time after this gra-
tuftous distribution Of stock an order
was given for 1000 indicators. at $4-2s
each.
Seger. in whose name the stock do
mated to Machen was issued, says he
bought this stock from Machen and paid
him 81, 200 for it. There is a mystery
about the true ownership of the 1000
shares given to Beavers. 1t was issued
in the name of D. S. Richardson, and at
Beavers suggestion assigned to John f.
McDonough. The first dividend con-
sisting of 1920 was forwarded to Bea-
vers February 6. 1901, and acknowledged
by him in the following letter:
PERSONAL Washington, Feb 20, 1901.
My Dear Mr. Richardson: Yours of Feb
present until something decisive is known.
ise sss SO We'll. / have not seen Mr. Heath,
but will make another effort today. lie Is
mighty hard to locate just now. being
my regards to all inquiring friends. and
believe me % y ByAV STSKs yssu uperintendep
Room 4 Mills Building San Francisco,
Cal.
This was in February, 1901, and the
stock was still in Richardson's name
and apparently in Beavers possession.
In August 1902, Beavers again wrote tes
PERSONALLY Washington, Aug. q, 1SO2-
Dear Richardson: Our friend in Salt
Lake wants the Enclosed stock drawn in
the name of Edwin B. Bacon Kindly is
sue new certificates and have these de-
stroyed. Forward same to me by regis
tered mail Yours. very Truly W yK;nAvERs
Mr.. D. S. Richardson,
Care Postmaster, San Francisco, Cal.
These letters were secured from Rich
| ardson by the inspectors. On the face
of the last letter is Endorsed in lead
pencil in the handwriting of r. H z.
ESpey, secretary of the company: HEdt-
tor Salt Lake Tribune" and on the
IDoa . Io,s
and Brigham" the first being Perry S.
Heaths office address and the second
his home at that time. The Enclosed
stock referred to In the last letter con-
sisted of 1000 of the shares given to
Beavers on December a7, 1899.
Edwin B. Bacon is q citizen of Louis
vile, KY, Heath's uncle by marriage,
and said to be one of his most intimate
friends This 1000 shares issued to Ed
win B. Bacon was returned to the COM
pany anonymously in blank envelope
after this investigation began. Bacon
states that he never sew the stock, and
did not know that it was in existence.
Heath refused to make written state.
ment,s but stated verbally to Inspector
Simmons that he never heard of the
stock, and had no interest in the COM
pany directly or indirectly 81
Machen alleges that what he did for
this company was at the earnest solicit
tation of ex-Congressman Loud. Rich
ardSon states that Mr.. Loud had no
pecuniary interest in the company; that
he never offered Loud any stock, be-
cause he thought such offer would
be resented, but that he did give 150
shares to H. F. Dodge, clerk of the
house committee on the postoffice and
postroads, but that Loud had no knowl-
edge of such donation.
The evidence in this case was submit
ted to the United States attorney for
the District of Columbia, and Beavers,
Machen and Erwin were indicted on
September 8, 1903, for conspiracy to de-
fraud the government. The district at
torney decided that the evidence against
Heath was not sufficient to justify his
indictment.
Rural Carriers Badges.
Charles ]. Heller of Philadelphia, who
furnishes badges for rural carriers, re-
ceiving SO cents each, was required to
give Machen 10 per cent on the gross
sales amounting to $767-55 in three
years.
The HELLER case' completes the rec
ord for the free delivery division where
in the investigation has resulted in
criminal proceedings. Many of the
frauds that yielded Machen the largest
returns, viz, those relating to package
boxes Croft fasteners, letter boxes, and
straps, began during the administration
of Hon. Wilson S. Bissell as postmaster
general and Frank H. Jones as first as
sistant. A change in the politics of the
national administration did not retard
the progress of his corrupt operations.
Machen does not seem to have cOnsid-
cred a day of reckoning as possible; over
nine years of continued prosperity had
given him confidence. He had passed
safely through two congressional inves-
LEGATIONS, one in 1896, by the COMMITTEES
on the postoffice and post roads of the
house, and one in 1897, by the committee
on civil service and retrenchment or the
senate. He had deceived his superior
officers through the administration OF
four different postmasters general and
a like number of first assistants; but his
schemes finally grew to be so elaborate
and their ramifications so extensive that
the atmosphere became charged with
suspicion; damaging stories affecting
his integrity reached the ears of his su-
periors, and this investigation was or
dered.
Charles Hedges.
Charles Hedges was appointed an as
sistant superintendent of free delivery
on July 1, 1898. He was made superin-
tendent of city delivery on July 1, 1901.
and was removed by order of the post
master general July %, 1903, for loaning
his travelling commission and making
false statements in his diary for the
purpose of collecting per diem to which
he was not entitled. c. T. Mccoy, an
assistant superintendent of free delivery,
who also faIsified his diary, was per-
nitted to resign.
II. n. Rand
H H Rand was appointed assistant
superintendent of the salary and allow
ance division in April, 1902. IT was
charged that Rand was interested in
the promotion of numerous speculative
enterprises, mostly mining companies.
and that he used his official position to
induce departmental employees to invest
in his schemes. A thorough investigators
failed to sustain the charge that Rand
had ever solicited departmental en-
ployes to buy stock in any of his COM
panies.
John N. Masten.
An0nUrn011e rbarDaz wore made