Gilpin observer., 1903-12-03
sRIsrow TELLS OF FRAUDS.
Astounding Revelations Of Lons-Exist-
Ing Corruption.

+ Ing Corruption.
The report OF Fourth Assistant Post
master General ]. l.. Bristow on the
postal investigation is substantially as
follows:
He first takes up the case OF Michael
w. Louis Of Cincinnati, appointed in 1897
Acting Superintendent of the Supply d.
vision. His peculations amounted to
many thousands OF dollars. He was re-
moved in October. 1903.
The administrative methods of Tyner
| and Barrett are clearly illustrated in
number of cases which were passed upon
| by them.
Mr.. Bristow shows how many fraudu-
lent schemes were accorded protection by
Barrett and allowed use Of the mails.
| These include many small swindles In
the shape Of lottery inducements, land
investment schemes. etc.
or the "turf-investment" swindles Mr..
Bristow says:
f. ]. Arnold & Co.. Of st. Louis. Mo-,
were conducting what is known as
"turfinvestment' scheme. On Novem-
ber 25. 1902. the inspectors having inves
tigated the company, recommended that
fraud order be issued against 1t. In
the meantime the company had employed
Barrett as its attorney and paid him
fee OF $1,000. And instead Of issuing
fraud order Tyner gave the company a
letter OF commendation. Two days after
Tyner wrote this letter Barrett received
check Of $1,000 an additional fee.
The company failed in February. 1903
assets. $4,000: liabilities. s3.120.776.
J. j. Ryan & Col. J. Ryan & Co.. of
st. Louis. was kindred institution to
Arnold & Co. In October. 1902. the in
spectors recommended fraud order
against this company. The company was
given hearing by the Assistant-Attor
ney Generals Office and another investi-
CATION by the inspectors was requested.
In the meantime ]. M. Johns, an attor-
ney at Rockville. Ind. made a proposition
to Ryan that for a fee of s.. 900 he could
help him. through his friend d. ". Mil
Ter. OF the Assistant Attorney Generals
Office. After some negotiations 1t was
agreed that $4,000 would be paid to Johns
by Ryan II he would give him a "clean
bilT' before the POST Office department.
This Johns agreed to do and Miller
cured a favorable ruling for Ryan & Co..
which he sent to Johns As result of
this transaction Miller and Johns were
indicted.
Rifing of the safe.-On April 81, 1903.
while the investigation of the Assistant
Attorney Generals Once was in prog
ress. Mrs. J. N. Tyner, in a clandestine
manner. admitted Mrs. Barrett and Mr..
I Hammer. a safe expert. into a private
room Of The Assistant Attorney Generals
Office. where he unlocked the safe and
took out all Of the contents. which Mrs.
Tyner carried on. What was in the safe
no one knows but the Tyners. Mrs.
Tyner stated that she went to the office
and secured the contents of the safe un-
der the direction of her husband. which
statement he confirmed. As result OF
this episode Tyner was summarily re-
moved from the office of Assistant Attor-
ney-General and Christiancy resigned.
For six years under Tyner's adminis-
tration certain favored frauds and lotter-
les were given free use of the mails
Barretts scheme to resign and practice
before the once. and Tyners part in
st.s -
this report. was the climax of official per-
fidy. more evil in Its results and more
demoralizing to the public conscience
than outright embezzlement or open
| theft.
Tyner and Barrett were indicted on
trict Of Columbia for conspiracy to de-
fraud.
The frauds in money-or forms. in
which James II. Metcaif. superintendent
OF the money order system. is involved.
and for which he was removed from
ONCE. are next taken up.
A long list OF swindles carried out by
August w. Machen OF Ohio Is enumerat-
ed. and the charge is made that he has
been guilty Of forgery. The schemes by
which the government was defrauded in
clude carriers satchels. the Groff fasten-
ers for letter boxes. painting OF street
letter boxes. carriers leather cases. the
contract for street letter boxes. package
attached to street letter boxes showing
the hours Of collection, and rural carriers
badges.
The report continues:
I'm August, 1897. George w. Beavers
was appointed chief of the salary and al
lowance division. Beavers methods have
been reckless and without rule or regu-
larity. Increases of allowances for clerk
hire In post-ofilces were made as mat
ters OF favor regardless of the necessities
-
quently made without consideration OF
the merits OF the clerk promoted. Long
time leases for post-office premises were
Cancelled and the rent increased upon the
recommendation OF prominent political
leaders. sometimes without regard to the
rental value Of the premises"
In the list OF Beavers misdeeds are
included the sale OF promotions. and the
padding OF pay rolls for clerk hire. oper-
ations which netted Beavers many thou
sands OF dollars.
The report shows that the government
has been swindled out OF vast amount
OF money by fraudulent leases. Twenty
cases are cited. In all of which Beavers
was implicated. and which have been
fully proved The revelations in this
connection. and in the case OF the pur-
chasing OF large amounts OF Brandt
Automatic Cashiers" are astounding
Mr.. Bristow says:
eliminating from consideration ail in
dications OF fraud and passing upon the
case wholly rs n question OF administra-
tive Judgment. II appears to me that this
transaction would have Justified the sum-
mary removal from office OF First Assist
ant Postmaster-General Heath and
George w. Beavers.
'But the element OF fraud can not be
eliminated. Men of ordinary Intelligence
rarely waste the public revenues In such
n manner without a personal motive. A
bribe OF e12.500 was paid Congressman
Edmund II. briggs to secure the order
for $50 machines. A part OF this money
has been traced to the bank account OF
Beavers.