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

cent on all sales made to the postoffice
department
In the course of the investigation the
inspectors discovered certain amounts
that had been paid Beavers by Green.
They called upon Green and asked as
to such payments, but he declined to
make any statement whatever in re-
gard to them. He was then subpoenaed
4 before the grand jury and still declined
to answer any questions, taking advan-
tage of the principle that a witness can
not be compelled to testify where such
testimony would incriminate himself.
The investigation shows that Green
paid Beavers the 10 per cent commission
allowed him by the company on all sales
made to the department.
| Beavers and Green were indicted by
the grand jury of the District Of Column
bia on September II and October 1, 1908.
Cancsling Machines.
There are eight varieties of machines
in use in the postal service for cancel
| ing stamps and post marking mail mat
ter; six of these are leased and two are
purchased outright The appropriation
for the rent and purchase of canceling
machines for the fiscal year 1869 was
| $50, 600; for the present fiscal year it is
$3.50, 900, showing an increase in the
amount of money expended for this pur-
pose during the time of the Beavers adj
ministration of the salary and allow
ance division of $4,000, or over 300 per
cent.
The Barr-Fyke, the Columbia, and the
Pneumatic are only used in very linn
| tied manner. The American and Hey
Dolphin are used extensively, but there
is no evidence of corrupt use of money
in securing their introduction into the
service.
The Barry machine was invented by
William Barry, of OsWego, N Y, IN
1888 In 1895 one hundred of these ma
chimes were rented at $3.50 per annum.
The correspondence of Major Ralph
Balm, the Washington agent in 1897,
shows that at the suggestion of Perry
S. Heath the company employed M. ID.
Helm, at a salary of $1,000 per year, to
use his influence in behalf of the Barry
machine. After Helms employment
the contract was renewed and the price
1898 advanced to 5000 per annum. In
July, 1900, after Heath's retirement
from the department. the rent was re-
duced to $150. The employment OF
Helm was in the nature of a gratulty
on the part of the company because
of his relations with the first assistant
postmaster general
The Hampden.-The Hampden can
ceiling machine was invented by w. r.
| Landfear in 1890 Landfear. in 1891
after Perry S. Heath became first as
sistant postmaster general, offered to
sell 100 of these machines to the de-
partment for 5000 each, but the offer
was declined
The company was reorganized in
June, 1898. and George N. Tyner. a
brother of the late assistant attorney
general, secured a controlling interest
| in it, Another effort was then made to
sell the machines to the department
which resulted in the purchase of 10C
machines at $500 each, the same ma
chine with few slight changes that
! had been offered at 5000 less than a
year before and declined.
The ma chimes proved worthless. OF
| the 100 machines purchased there are
at present only II of them in use, and
there is evidence that their worthless
character was well known to both
Heath and Beavers before they were
ordered
The Doremus.-The most important
contract for canceling machines was
! that for the DoremuS- It's original pro-
motors were ". D. Doremus. the in
ventor; L T. Kitchener, member of the
law firm of Dudley & Kitchener. OF
Washington, and H. ]. Truesdell. OF
organized August 8, 1892 and capital
lied for 100000. divided into 1,00G
shares of 800 each. OF the I, 600 shares
! $50 were reserved as treasury stock, the
remaining three-fourti1s being owned
equally by Doremus. Truesdell. and
the firm of Dudley & Kitchener. The
| $50 shares of treasury stock were
transferred shortly after the organiza-
ton of the company to George E.
Green of BjnghantOn, N Y in con-
isideration CT his agreeing to guarantee
the expense of manufacturing the first
100 machines; and in December. 1899
he acquired the interest of Dudley &
Miche2ar-
Truesdell was on intimate personal re-
lations with Beavers, and in 1899 an or
der was given for 100 machines, at $50
each Long before all of the 100 ma
chimes had been delivered the depart
ment received numerous complaints
from postmasters stating that they were
worthless; and on account of the great
dissatisfaction with this first 100 known
as Model No. i the Doremus company
esta blished a factory of its own in
Washington and created Model No 2.
and Beavers, without testing its effici-
ency, on June 80, 1900, contracted for 100
of the new machines at $225 each. Model
No. . also proved a failure, and Model
No was made, ana Beavers promptly