The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1903-12-03
TIE BRIsTOW REPORT
is HARD ON HEATH
All Evidence Points 10 Truth OF
Stories of His Personal
Profit.
WOULDN'T EVEN DENY IT
He Stated Personally That He Was Not
Involved, but Declined to Put His
Statement on Paper-lhe
Report Generally.

should have decided that the evidence
against Perry Heath, IN cGnnectaoh
with the postal frauds, wa not SUI
feient to warrant his Indictment, IS
less evident since the publication Of the
report of Fourth Assistant
General Bristow than it was before.
Mr.. Bristow shows that there is null
tiplied evidence that Heath was given
$50, 600 of stock of the DoremuS cancer
ing Machine company, in CONSIDERABLE
of large orders from the p~ostotlce de-
partment for these machines, when are
stated to have been practically worth
less.
The Bristow report, long awaited, a
been given to the public. Most OIL us
contents are in q general way famillaf
to people who have been following the
postal Investigations; but there are
some new features. Mr.. BrlStoW eA-
plains that the evidence against Heath
was not sufficient to warrant MS IN
dictrnent. a few weeks ago it was eX-
planned on high official authority that
Heath was really protected by the stat
ute of limitations: and color is given
to this by the presidents recommends
ton that the statute be EXTENDED 10
five years in order to give a fair chance
of experimenting smooth rascais IN gov
eminent employ.
Heath's Contracting Interests.
Perry S. Heath, secretary of the. re-
publican national committee and hrst
assistant postmaster general till three
years ago, is brought in from first to
last of the report on the eNtravagant
contracts for buying stamp cancellng
machines. In the case of the Barry
machine. Heath is q TO have sug-
gested that M. D. Helm be named as
attorney for the company, Helm being
n of the notorious manlpulators OF
postal affairs, contracts, etc. After
Helms appointment, which was in the
nature OF a gratuity, because of his
personal relations with Heath, the COM
pany was able to raise its price, first to
SITS and then to 5000 and sell more ma
chimes than ever.
The Doremus Deals.
The Hampden canceling machine was
invented by w. r. Landfear in 1890.
Landfear, in 1897, after Heath became
first assistant, offered to sell 100 ma
chimes to the department. for $500 each,
but the offer "a declined.
The company was reorganized in
June, 1898. and George N. Tyner, q
brother of the late assistant attorney
SCSdIOo@ Ollt
Another effort resulted in the purchase
of 100 machines at $500 each, the same
machine offered at 5000 a year before
and declined.
The maehines proved worthless. Only
seventeen of them are in use, n there
is evidence that their worthless charac-i
ter was known to Heath n Beavers
before they We're ordered.
The most important contract for can
nn1ir ~ ~ a !, ne c, z 11yo q frr Il n nWI1 MI &
Its original promoters We're w. D.
DoreTnus, the inventor; L.. 7. Kitchener,
member of the law, firm of Dudley &
Kitchener, of Washington, n II. j.
Truesdell of B~inghaInton, n. z. The
company was organized August 3, 1893,
and capitalized for $4,000 in 1000
shares. OF the 1000 shares, $50 We're
reserved for treasury stock, the remains
ing th~ree-bourths being owned equally
by Dorenlus, Truesdell and Dudley 81
Kitchener. The $50 shares of treasury
stock were transferred shortly after
organization to George 3. Green of
Binghamton, N. Y, in consideration of
his agreeing to guarantee the expense
of manufacturing the first 100 ma
chimes; and in December. 1899, he ac-
@quired the interest Of Dudley & Mich
sener.
Truesdell was on Intimate personal
ACldIlOIlo Will DCdNClSoSt VA lAAsIo0V iIi
order was given for 160 machines, at
SEQ each. Long before all Of the 100
machines had been delivered the de-
partment received numerous COM
plants stating they We're worthless;
and on account OF the great dissatis-
faction with the first 100, known as
Model No, 4. the Doremus cGrapany es-
tablished a factory Of its " in Wash
ington and created Model No. 2, and
SSSaa y,,i,e tyif1,or7 2+actinc "a cH4nAinia,,
contracted for 100 new machines at $225
each. No. 2 also proved q failure, and
No. 3 was made. and Beavers promptly
gave an order for 100 of that model at
s22s each.
Practically Pure Graft.
OF the 200 machines purchased OF
models Nos. 1 and 2 but 80 are now in
use, thesrenlaining 161 being practically
aAllet loss.
SIX hundred and seventy-one Of these
machines have been ordered by thesde-
spartnaent, at a net cost of S143,4T5.
and Greensbecanle
estrangedand Trsesdell LEFT the employ
OF the Bundy company, and also sold
mis- interest in the DorenlusS calcelins
machine. When interviewed bg the
inspectors Truesdell stated that before
tile sseeorid order was given for 100 ma.
sahifI1a g Tres 6 la fliiiiff1Issff had trans.
- y S.9S ,M1A lgt1oolSSs
ant n o I'm. ssssss e n q $1,000 worth
OF his stock. IN consideration OF reeeiVi
Ing IN 9 or5rot less 500 ma
'Tfuesdeli states that he contributes
$4,000 worth efstpell to Green as hi
shareSofsthe amount given Heath. II,
also stated thai Dore.ans transferred
S5 600 Worthof his stock in the sam,
manner. BoreInus states that he dit
Contribute fifty shares TO Green 10 b,
used efoTgthe best interests OF the com
Dorefnus admits that Iruesdel
told him subsequently that the stool
wa to be transferred to Heath in con
sideration Of a large oTder Ida 3
Crowe1l, q booiskeepersof the Doremu,
company. confirms many of T%ruesdell'
statements Ns
Heath refused to make writer
statement but said SverballMs to- In
spectcra Simmons that he never received
any stock from the Doremus c6Ssssnan
9any remuneration. directIyor indi
Details 81 Evidence.
Iruesdell further states that on al
machines sold to the department. afte
the order for 400 Of smodei No. fifth
Mas required TO pay Beaver
SIS on each machine. which Beaver
Stated waste be divided with Heath
that on first 100she didsTot receiv
g$25 each But a9lump sum. as he; re
members $500, which he personal;