The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-06-26
mr.. LOUD NOW HAS
CHANCE TO EXPLAIN
Former Economist Of Postoffice
Committee Promoted
Worthless Device
BITTER FIGHT
Many Queer Deals Are to Be Uncov.
ered-Minine Speculation Is a
Common Thing Among Post
office Employees.

washington, June E6.-By Iar the
most sensational developments in the
postoffice investigation is the
ton of Eugene F. Loud of California,
many years chairman of the house
committee on postof1ces and p%ostroads,
with the alleged questionable proceed
ings in the department.
Loud has posed as a reforner and
economist session after session. He
opposed rural delivery and fought to a
successful finish the proposition of Con-
gresham j. a. Tawney to increase the
salaries of the railway mail clerks.
MI. Loud was a prime factor in bring
ing about the present investigation.
He charged c~rookedness and irregu-
1arities openly in congress-, consequent
1y it is q rude surprise to Mr.. Loud's
friends to find his name ~placarded to-
day as being introduced into securing
payment for some sort of a useless de-
vice In the San Francisco postoffice.
MI. Loud showed an interest in a let
ter box device for indicating the hours
of collection Of mail to an extent that
caused certain p%ostofice department
officials to regard him as a possible
representative of the company in
Washington. 1t appears that the Pos
tai Device n Improvement
"a California concern, mpo 1t is
said, of the postal employees, some of
whom occupy responsible positions, Sc
cured contracts for their device
Through the assistance of Mr.. Loud.
Devices Were Never Used.
1t is said that 1000 of these devices
were ordered at prices varying from $4
to S4.50 each, and the startling state
ment Is made that these devices We're
never used, but are at present repos-
Ing in a storehouse. Although this fact
was known, it is laid that a further
order for 10000 was placed, and that
these are now being delivered. This
second order, it is stated, was Insisted
on by Mr.. Lou upon the occasion Of
n visit by him to the postotfice depart
ment shortly after the adjournment of
in June, 1902.
The profit to the is said to
be 100 per cent.
Ex-Representative Loud has been at
h postoiiice department in behalf of
this San Francisco 1T is
stated, but specifically explained that he
was not interested in the company. The
informant regarding the transaction for
the California devices also states that
it would be shown by the records of
the postotfice department hat of the
sos, 600 deficiency in the free delivery
service with which Mr.. Machen is
charged, $4,000 is represented by 10000
of these devices.
Investigate Investigators.
The p~ostottice muddle has assumed
a reactionary stage. 1t Is charged the
Investigators hould themselves be in
vestigated. Charges have been made
that pOStofice inspectors have engaged
in the mining business, and it has de-
veloped that Machen, Rand and
zers were not the only officials who were
promoting enterprises. General Bris-
tow, the fourth assistant, who Is con-
Quoting the investigation, frankly adj
mits that he put up 5000 to Inspector
John P. Culm who, while on official
duty in Alaska, bought q mine which
he found that he could not develop.
Mr.. Walters, who succeeded George
w. Beavers as superintendent of sup
plies and salaries, admits that, while
p%ostoffice inspector, he, with ten other
postal employees, invested in a copper
mining venture in Arizona Mr.. Wal
tiers has admitted that among those
who put in honey was Chief Postoffice
Inspector Cochrane, who is assistant to
Genera Bristow.
These charges and admissions have
caused q sensation in postoffice cir
cles, but this latest development, it is
said by those who are well informed,
points to a most bitter fight when the
time comes. 1t is further stated that
other big departments and depart
ment officials will be involved. 1t is an
open secret that many OF the we'll
known heads Of departments and chiefs
of divisions in Washington are en-
gagged in mining deals, stock specula-
tons and other enterprises. Some of
them sell supplies to the government,
and Attorney General Knox a held
hat an official in selling fuel to a de-
partment where he is employed COM
mits no legal indiscretion. There Is
no telling when the end will be reached
if the postoffice investigation is to be
the established criterion for riding the
departments of promoters and private
business enterprises.