The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1903-11-04

yes; Machen gave me the name
Of Soigar man who ! had met,
and 1900 shares were issued to him
in So -ars name Beavers gave me
the name of Mcdonald and 1000 shares
were issued to him in that name 1
did not agree to give stock to any
body else at Washington"
Richardson said that he had no con-
versation with Erwin about giving
stock to anybody. The report filed
with the directors upon Richardson's
return, and signed also by Erwin,
which was put in evidence, said that
Richardson had been given to under
stand that the company would receive
contract for SS356 for 20S9 devices
at "a each-20S9 being the total num-
Der of boxes then in use in California,
each of which was to be equipped
with a device The report adds: THE
value of this is much greater when
we consider that this action means
in the way of further profits"
Richardson said that his first agree
ment was merely verbal and that sub
sequent orders were merely letters
| from Machen's department; that no
bids were ever asked or any advertising
done, and that no one ever suggested
that the matter of the devices was an
urgency matter which alone justifies
ordering supplies without first adver-
! Using for bids. This violation is one
of the counts in the last indictment
of Machen.
In December, 1899, the directors of
! the device company passed a resolu-
ton giving several thousand shares OF
stock to Richardson, Hoagland, Erwin
and II. P. Thrall. Richardson identi-
fed the record when it was handed
to him and said that the stock for
Machen and Beavers was to come out
of that specified in the resolution as
going to himself and Hoagland.
Woodwork pointed to the letters
80. XIV. w. NJ" on the paper, and
asked: what do these initials stand
for?"
"They stand for Postmaster w. w.
/ Montague" replied Richardson, "be-
/ ing his approval of the issue of stock"
AS to how much Montague knew of
the real recipients of the stock thus
conveyed Richardson did not say and
was not asked.
/
his eyes at this interesting informa-
ton, and he inquired, Did Machen
and Beavers pay anything for this
stock?" and the witness replied : mo
SIR"
Soon after Machen received his stock
a letter which was introduced, came
from him increasing the order to 1000
boxes.
Richardson told OF visiting Washing
ton again in March, 1900, and asking
Machen to allow 81. and s. each for
them. Then arose some question as
to where the additional money to pay
! for them was to come from, and after
his return home Richardson conferred
with Congressman Loud, whose posi-
ton gave him great influence in the
appropriation of money for postoffice
affairs, and Richardson wrote the let
ter found in Machen's papers, which
says: "I have laid the matter before
Loud as frankly as I have before
you, and I am assured by him that the
money will be provided" This is
hardly consistent with Loud's repeated
declarations that he had no knowledge
or business with the affairs of the
Postal Device and Development Com
/ pany.
The fact that the Government in
stead of the company paid the freight
and cost of attaching the devices was
brought out, making the profit greater.
Erwin's connection was the last
thing to be reached. The memoran-
DUN was introduced which Richardson
gave him when he went to Washington
early in 1900. 1t reminded him to
speak to Machen about the time
of payment and about a detail of the
devices then being manufactured =.
! Richardson said be asked Erwin as
a friend and as a stakeholder to at
tend to the matters. Two or three
letters written by Erwin to Machen
We're introduced in which the business
of the device company was referred
to, but which did not appear to con-
tain anything sensational. 1t is said
! that in indicting Erwin the Grand
Jury presumed that the memorandum
! and these letters indicated that Err
win was party to the conspiracy whose
details are divulged by Richardson.
Richardson will be oss-examined
! by Attorney Knight this afternoon
| and q decision is eXDected soon