The Washington times., 1903-11-30

established factory of its own in
Washington and created Model Nc ,.
and Beavers. without testing its eff
cheney. on June 80. 1900 contracted for
100 Of the new machines at SIS each.
Model No. . also proved a failure, and
Model No. 3 vas made. and Beavers
promptly gave an order for 100 machines
of that model at S225 each.
'Of the 200 machines purchased of
models Nos 1 and but tbirty-nine are
now in use, the remaining 161 being prac-
tically a net loss.
six hundred and seventy-one Of these
machines have been ordered by the de-
partment, at . net cost OF S14S.475. This
is q repetition of the story of automatic
cashiers and Elliott & Hatch type
writer's. except that ii is on a larger
scale.
In 1901 Truesden and Green became
estranged and Truesdell left the employ
Of the Bundy company, and also sold his
interest in the Doremus eanceIing ma
chine When interviewed by the inspec-
tors Truesdell stated that before the
second order on June 30, 1900. was given
for 100 machines. Green told him he had
.
sistant Postmaster General. $20,000 worth
% his stock, in consideration of receiv-
ing an order for not less than 800 ma
chimes.
-'Truesdell states that he contributed
$500 worth of stock to Green as his
share Of the amount given Heath. He
also stated that Doremus transferred
$500 worth of his stock in the same
manner. Doremus denies any knowledge
Of the stock having been given to Heath.
but states that he did contribute fifty
shares, par value s. COO to Green to BE-
used for the best interests of the com
pany. Doremus admits THAI TruesdeH
told him subsequently that the stock was
TO be transferred to Heath in considera-
ton OF receiving a large order for ma
chimes. Ida +. Crowell, TruesdelIs sec
rotary. who was bOokkeeper in the en-
ploy Of the Doremus Machine Company
from October 3, 1900, until August. 1861.
ments
Statement Refused.
Heath refused to make written
statement, but said verbally to Inspec-
tor Simmons that ne never received any
stock from the Doremus Canceling Ma
chine Company OF any remuneration OF
TruesdeIl further states that on ali
machines sold to the department after
the order for 100 model No. I. the com
pany was required TO pay Beavers S25
on each machine. which Beavers stated
was 10 be divided with Heath; that
on the first 100 he did not receive ga
each, but a lump sum OF money. as 10
remembers 500, which he personally paid
Beavers in New York TruesdeU state>
that he paid Beavers sums Of $500 upon
three other occasions; that he procured
the money by checks on the Seventh Ma
ionai Bank Of New York. cashed ar the
Citizens National Bank. by Ida E
Crowen- Ida f. CroweH and the records
Of the Citizens National Bank confirm
TruesdelTs statement as to the casbinc
Of the checks.
IDA r Crowell states that the money
procured by cashing these checks was
charged on the books of the companv
70 commission account Her state
ment IS eorroborated by william W.
Long, CT Washington. D. c.. a book
keeper, who was employed to post the
DOCKS OF the Doremus Machine Com
pany. who states that he found such
entries on the blotter and ledger. made
by Mrs. Crowell, but no name vas
Mrs. CrOweI and TruesdelI left the
employ of the company in 1901 and
since then Green attended to the bust
ness personally. as he did in the case
OF the Bundy clocks. He has left a
more definite record Of the money paid
70 Beavers than was left BIZ Trues-
de!!
Green's Bank Account.
AS has been stated. an account Of
the company was kept in the Seventh
National Bank of New York. In the
same bank Green also kept an account.
On March a. 1902, Green drew a check
for $500 on the account of the Doremus
Machine Company il the Seventh Ma
tional Bank; on March 10 the personal
account Of Green in the same bank was
credited with the same amount. and on
March IS Beavers deposited in his ac-
count in the Nassau Trust COMPANY
Of Brooklyn. y Y. a check on the Sew
enth National Bank Of New York fer
500, and on March 70 the personal &C
count of Green in the seventh National
Bank OF New York was charged wit.
$500
"On May 10. 1902. a check for 1000
was charged TO the account of the Do
remus Machine Company in the Seventh
the personal account OF Green was
credited with that sum; four DAYS later
George W. Beavers deposited by letter
from Washington. D. c. with the
brokerage firm of Moore & SchIey Of
New York. the personal check of Georse
Z. Green for s., 900.
''On June a. 1902. the account Of the
Doremus Machine Company in the Sew
enth National Bank of New York is
charged with a check for 81 $50. and on
the same day the personal account or
Green in the same bank is credited with
the identical sum. The next day Beav-
eTs deposited with the brokerage firm
Of Moore & Schley of New York the
personal check Of George E. Green for
81 30
There were 100 Doremus canceIing
machines installed by the Postoff1ce De-
partment from January /, 1902, to June
1, 1902. The three checks referred to ag-
gregate $3,250. an amount exactly
equivalent TO SIS each on $50 machines.
When the inspectors inquired OF
Green as TO these payments to Beav-
ers, he refused TO make any statement.
He was subpoenaed before the grand
jury, and he stiI refused 10 answer any
questions.
ssrT-l,., f,,z,o,4o.,.- 81, 1-Y1-4