Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1903-09-21
CASE AGAINST erwin
RECEIVED STOCK FROM
POSTAL DEVICE COMPANY
WHAT ERWIN HAS TO SAY-AT.
ToRNEY HE CAN KNOCK OUT.
INDICTMENT - PERRY
HEATH M IT.

The indictment returned against
James w. Erwin. assistant superin.
tendent of the free delivery system in
San Francisco, charges him with con.
spiraCy to defraud the United States
by using undue influence to secure the
adoption by the Postofflce Department
OF patented device for announcing
the time Of the next mail collection.
The detailed report from Washing.
ton giving the account Of the Grand
Jury action says:
Sensational statements concerning
the connection Of former Assistant
Postmaster General Heath with the
Postal Device and Improvement Com.
pany of San Francisco are made In the
testimony submitted to the Grand Jury
within the last few weeks. One thou.
sand shares of stock of the San Fran.
cisco company are alleged to have been
distributed among postolIice officials to
obtain the adoption by the department
of the device for registering on letter
boxes the time oil the next mail col
lection.
Daniel 5. Richardson. president Of
the California company, came to
Washington accompanied by Erwin to
introduce the device. Erwin was then
serving as postotiice inspector He in.
troduced Richardson to Beavers, Ma.
chen, Heath and others at the depart.
ment. One thousand shares OF the
cOmpany's stock are said to have been
distributed to the PostoniCe Depart.
ment employees, who took il under as.
sumCd names.
The device was Immediately adopted
This occurred in October, 1899 1t is
alleged that the price paid the com.
pany for the device was aiterward in.
creased through MaChen's efforts.
Beavers, Machen and Erwin are the
this transaction.
The inspectors say that Richardson
was so frank and candid in his state
ments and II was so apparent that he
was an unconscious tool of others in
the deal that 1t was thought better not
to bring his case before the Grand Jury
at least at this time. He Is understood
to have testified that Machen instruct.
ed him that he must distribute the
stock If he wished to have his device
adopted. He Is also understood to have
further said that Beavers intimated
that ii would be well to see Perry S.
Heath, then First Assistant Postmaster
General, whose name Beavers Is said
10 have ued very freely. There ap.
pears to be no direct testimony that
Heath received any of the stock, how.
ever
In connection with this company the
name of cX-Representative Loud of
California has been mentioned in the
past, but 1t is said by officials in au.
thority that there Is no testimony in
the hands Of the Grand Jury implicit
ing Loud In any way. He Is said to
have acted for Richardson, as Is com.
mon for a Representative in Congress
TO act for his constituents, and there Is
no evidence showing that he was
stoCkhOidCr in the San Francisco com
pany.
The indictment against Beavers, Ma.
chen and Erwin alleges in substance
that the Postal Device and Improve.
ment Company Of San Francisco. Tor.
merly the Montague Indicator and Let
ter Box Company, by resolution of DC
tober &, 1893, set aside 1000 ,lgras Of
It's stock to be used in any legitimate
way its president might think proper
in forwarding the interests of the cQU..
pany. Armed with this authority, the
president Daniel $. Richardson, ac.
companiod by Erwin, came to Wash.
lngton. Erwin was then postoiIlcc
inspector and the company was com.
posed almost entirely OF pOstofliCe en-.
ployes in the West, Erwin introduced
Richardson to all the postofilce officials
at Washington and Beavers, Machen,
, Heath and others examined the dc.
vices.
As result Of an order for eQuipping
2,oS9 letter boxes with the device was
secured. About that time, on sugges.
ton from Beavers, COnCurred in by Ma
chen, the name of the company was
postohice officials should disappear
from its management. Beavers and
Machen became the owners Of blocks
OF the stock, both under assumed
names. The company was then sys.
tomatlcally relieved Of its obligations
in the way Of paying freight, Grating
and printing cards for the devices 1t
was furnishing.
out of the 1000 shares of stock set
aside as above mentioned most all Of
IT went to different postonlce officials.
The president Of the company after.
ward came to Washington again with
the request that an increase be made
in the compensation the company was
receiving for its device. The request
was granted. Dividends were after.
ward paid on the stock.
What Erwin Says.
With regard to the connection of the
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