Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-16
TO Be INVESTIGATED.
Charges Regarding a Former
Postal Official.
A SEARCHING INQUIRY
OPINION RENDERED REGARDING
TURF INVESTMENT FIRM.
Why a Fraud Order Was Not Issued
by the Department-statement
Of Mr.. Christiancy.
A SEARCHING INQUIRY

Complaint has been filed with the Presl-
dent by T. c. Campbell of Cincinnati, Ohio,
against Harrison j. Barrett, former
assistant to the assistant attorney general
for the Post Office Department. which IN
wolves the Office of the assistant attorney
general to such a degree that an inVestl-
CATION will be had of the matter. Mr..
Campbell has not yet presented his com
plant to the President in person. but he has
given notice that he will do SO and will
probably come to Washington early this
week for this purpose. The matter was
placed in the hands Of the President by
friend of Mr.. Campbell in this city and MI.
Roosevelt has intimated that he would ike
to hear all that Mr.. Campbell has to say IN
the premises In the meantime the fourth
assistant postmaster general, Mr.. BristoW,
is to make an investigation of the alleged
irregularities Of the office of the assistant
attorney general for the Post ONCE Depart
ment and make a report to the PRESIDENT
as to the result Of his investigations: None
Of the officials in charge Of the investigator
would discuss the matter this morning, ana
it is understood that the President has In.
timated that whatever is discovered shall
be reported to him before being given out
to the public. The investigation Is to be
searching and thorough and will cover all
the alleged transactions of the department
with the so called turf investment concerns
OF st. Louis, Chicago and other cities
The Complaint.
The complaint Is, In effect, that Mr.. Bar
rett, while acting an assistant to Assist
ant Attorney General Tyner of the Post Of
flee Department, received large sum OF
money from one of the turf investment con-
Germs for preparing an opinion declaring the
business Of the companies to be legitimate
and for promise of protection to be given
the companies by certain officials Of the
Post Office Department.
Judge Tyner, the assistant attorney gen.
eral, characterizes the charges as absurd
and ridiculous and states that an investi-
cation will show by the records of the de-
partment that the action of the officials of
his Office was all that could be done under
the law relating to the cases
Some time ago complaint was filed with
the postmaster general regarding one OF the
turf investment companies and an inspector
of the department was ordered to make an
investigation and it was on the strength
Of this investigation that the opinion OF the
assistant attorney general was written.
The proceedings referred to related to a
turf Investment" scheme which was ope-
rated by John J. Ryan & Co. in st. Louis,
and which was examined at length by the
post office officials. In an interview with
Mr. George A. c. Chrstiancy, acting asss-
tant attorney general for the Post Office
Department, which appeared in The Star
February II last. Mr.. Christiancy detailed
the result Of the investigation as follows:
The Ryan Investigation.
Ryan & Co. were called upon to appear
and show cause why a fraud order should
not be issued in November last. This was
upon the report and recommendation of In
spectors Fulton and Platt of st. Louis, and
one of the inspectors who investigated the
case was requested to be present at the
hearing as the office had had no other case
of this nature before it, and therefore we
wanted a government witness-an inspector
present.
He was, however. unable to be present,
and Ryan, who was present in person, stat
ed that while he had made a guarantee of
per cent in his letters and literature he
had actually earned that amount, and,
therefore, the dividends had not been paid
from the principal or from other people S
money, but from the actual earnings, and
that the principal was intact, either in cash
or other valuable assets, and that, there
fore If he had made a guarantee which the
Post Office Department had not, and could
not, recognize, yet as a matter OF fact, ne
had earned that money to pay the dlVl-
dends
"As In the absence of the inspector who
made the investigation the department was
unable to contradict this statement, we gave
him the opportunity to prove MS state
ments, but suggesting to him that we
would have the inspectors go over his books
If he would give them access to them, to as
certain whether or not he had paid divi-
dends from the principal or from earnings
only.
.'If it was found that he had, as he claim
ed the principal intact, we asked him
whether he would return to the investors
their principal and such interest as they
had actually earned and was to their credlt.
This he said he would do, and would give
l,pth ay NJ Inc
with his promise. and he stated he would
eliminate from his scheme any guarantee
of profits and would simply state that If
there were any profits he would distribute
them up to a certain amount.
1.-The case was, therefore, referred to the
INSPECTOR in charge, Dice, at St Louis, who
made a full and satisfactory examination
of their books, and In submitting his report
to the department recommends that the
case should be closed.
The Arnold Case.
Regarding letter written by Judge Ty-
ner Mr.. Christiancy said: Il have noticed
some criticism of an official of the Post
Office Department because of letter adj
dressed to E. ]. Arnold IL Co. of st. Louis,
which 1t appears, they have published In
their literature This letter, | presume, Is
the one written by General Tyner, who con-
sidered the case and recommended no &C
time to show that Arnold & Co. were guilty
of fraud The letter was Enclosed with
another to counsel for Arnold & Co., in
which it is stated that the investigation by
post office inspectors hau been very fully
considered, at their request, and the case
closed and the request was made of the
counsel of the company that the same be
forwarded to Arnold & Co. at st. Louis
An Opinion Given in 1894.
This was not the first time matters OF
this kind had come to the attention of the
Post Office Department, however. In an
opinion dated January 2, 1894 Mr. John l..
Thomas. then assistant attorney general
for the Post Office Department said almost
the same thing:
THE use of the mails to carry
on correspondence for the reception of
money which parties desire to bet upon
certain horses, while undoubtedly a gam
bling scheme does not come within the
terms of the anti-lottery act. No award is
made depending entirely upon chance or
lot, the idea being that the investor exer-
cises his foresight, sagacity or design in Sc
lecting the horse upon which his money is
placed, full opportunity being afforded him
for that purpose. 80
The officials of the Attorney Generals
Office have recommended the enactment of
an amendment to the law regarding frauds