The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-30


York. and now consul at Nuremburg, Germany,
is alleged to be implicated II the fraud.
A Typewriter Steal.
Beavers and w. Scott Towers, superintendent
Of station G of the Washington postoffce, have
been indicted for conspiracy in purchasing 1913
Of which 131 were sent to spostmasters without
requsition and others were sent when cheaper
machines weie asked for. the total cost being
machines, paid $5O for each machine ordered to
Towers, who divided with Beavers.
Beavers and George E. Green, president Of the
company that manufactures the Bundy time re-
corders. have been indicted in connection with
the reckless use Of these clocks on each Of which
Green paid Beavers commission of 10 per cent
II. ]. Truesdale, an agent for the company, says
PRODUCTION Of the clocks The price was origi-
nally $50 each This was afterwards increased
to $500, and lilo have been supplied
More Charges Against Heath.
Beavers. George E. Green of Binghamton, N.
Y, and ". D. Doremus have been indicted for
conspiracy to defraud in connection with the
purchase of cancehng machines. OF which
have been found worthless. The appropriation
for the rent and purchase of canceling machines
for the fiscal year 1S961S97 was $50, 900; for the
present fiscal year 1t is $3.50. 900. showing an IN
crease in the amount expended for this purpose
during the Beavers administration of the salary
and allowance division Of 100000. or over 300
per cent. Green alleged he transferred to Perry
S. Heath, first assistant postmaster general
$4,000 worth of his stock in consideration of
receiving order for not less than 300 ma.
chimes. Heath refused to make written state
ment, but said verbally to Inspector Simmons
that he never received any stock from the Do
remus Canceling Machine company or any re-
muneration Of any kind. directly or indirectly.
On all machines sold the department after the
order OF 100. the company was required to pay
Beavers $25, which, Beavers stated. to be
divided with Heath. The evidence against
Heath was also submitted to the district attor-
ney, who decided that it was not sufficient to
warrant his Indictment -.
Bristow's Conclusions.
For the purpose of this report the investiga-
ton ordered has been completed. In the prepara-
ton Of cases for trial where indictments have
been found. information may be secured which
will necessitate further investigation and pos
sibly involve persons not now implicated.
More than forty inspectors have been en-
ployed upon this work, some Of them continuously
every day since the investigation began. The
records of 1000 postoffces have been examined,
and the files Of many divisions Of the depart
years, scrutinized.
The system of organized corruption that has
been disclosed began in 1898 and continued until
stopped by this Investigation. The amount of
money secured by the corrupt officials and their
confederates Is small as compared to the total
loss to the government. To illustrate: There
is no evidence that Louis received any compen-
sation from Ault & Wiborg, yet during the first
year of his administration the expenditures for
canceling ink increased over $4,000.
It does not appear that Kempner received
! money from the manifold company, vet the cost
of manifold supplies increased than $40, 900
a year.
! that company defrauded the people out of over
| So. 600 00O
Machen probably did not receive more than
$2e. 900 from the Croft fastener Yet the gov
eminent has paid approximately 100000 for
that device. which represents net loss, since