Mexico Missouri message., 1903-12-03

In 1880. while John wanamaker was
/ Postmaster-G General, an effort was madO
to Introduce the Bundy time recorder for
use in tho postal service, but 4 failed.
Later, during the administration OF Post
master General Wilson upon the recon-
incubation Of A. w. Maehen, Il was adopt
ed. Maohen estimated that the entire
free-delivery service coulo be supplied for
/ - be9.50.
"In 1901 an EFFORT was made by First
Assistant Postmaster-General W. NJ,
johnson and his chief clerk John M. Mas
ten. to reduce the price Of these time re-
corders. but the effort was afterwardr
abandoned.
III. J. Truesdell, who was agent OF the
company at the time these clocks wera
/ first adopted, states that he paid Machen
| 1900 for his services in securing their
introduction into the service Criminal
action on such payment Is barred by the
statute of limitations.
BY the purchasing OF canceling ma
| chimes for use in the postal service Il Il
shown that the government has lost over
! u00. 600. which sum was divided among the
| conspirators interested. Here again Grim
inal action is barred by the statute OF lin
itations.
Says Mr.. Bristow:
THE most important contract for can.
ceiling machines was that for the Dore-
mus. Its original promoters were w. d.
Doremus, the inventor; L. T. Kitchener,
member Of the law firm of Dudley &
/ Kitchener. OF Washington, and II. ].
Truesdell, Of Binghamton, N. Y. The
company was organized August 3, 1899,
and capitalized for 100000. divided into
1000 shares Of 500 each. Truesdell was on
Intimate personal relations with Beavers,
and In 1899 an order was given for 100
machines, at $3.50 each. Long before all
OF the 100 machines had been delivered
the department received numerous com
plants from postmasters stating that
they were worthless; and on account OF
the great dissatisfaction with this first
100 known as Model No. / the Doremus
company established a factory OF its own
In Washington and created Model No. 2,
and Beavers, without testing its efficien-
cy, on June 80, 1900, contracted for 100 of
the new machines at $225 each. Model No
also proved a failure, and Model No. 3
was made, and Beavers promptly gave an
order for 100 machines Of that model at
1926 each.
"Of the 200 machines purchased of mod
els Nos. and 2 but 80 are now in use
the remaining .l61 being practically a net
loss.
six hundred and seventy-one OF these
machines have been ordered by the de-
partment. at a net cost of S143,4 75 This il
repetition Of the story OF automatic
cashiers and Elliott & Hatch typewriters,
except that IL Is on larger scale
I'm 1901 Truesdell and Green became es-
tranged and Truesdell left the employ of
the Bunday company, and also sold his
Interest In the Doremus canceling ma
chine. When interviewed by the inspec-
tors Truesdell stated that before the sec
ond order on June 30, 1900, was given for
100 machines Green told him he had
transferred to Perry s. Heath, First AS
sistant Postmaster-General, so, 900 worth
Of his stock, in consideration of receive
ing an order for not less than 800 ma
chimes.
Heath refused to make a written state
ment, but said verbally to Inspector Sim
mons that he never received any stock
from the Doremus Canceling Machine
Company or any remuneration Of any
kind, directly OF indirctlye
On october .. 1903 indictments were
found against Green, Doremus. and BeaV-
ers for conspiracy to defraud.
The evidence against Heath was also
submitted to the district attorney who
decided that It was not sufficient to war
rant his indictment.
THE administration OF Beavers was Il
possible, more demoralizing upon the In
tegrity OF the service than that of Ma
chen"
In conclusion the report says:
For the purposes OF this report, the
investigation ordered by YOU on March
Z has been completed. In the preparation
OF cases for, trial where indictments have
been found information NAV he secured
which will necessitate further investiga-
ton and possibly involve persons not now
| implicated
The system of organized corruption
| that has been disclosed began In 1893 and
| continued until stopped by this investiga
ton The amount of money secured by
the corrupt officials and their confeder-
ates is small as compared to the total
/ loss to the Government. To illustrate:
Barrett received but SO, 900 from Ar
mold, yet that company defrauded the
people out OF over 100000 Machen
probably did not receive more than $685.
900 from the Gron fastener. Yet the Cow
| eminent has paid approximately $I3O 600
for that device, which represents a net
loss since the Department continued,
| by the terms OF the contract for letter
boxes, to pay for the original fasteners.
4 Beavers and HIS associates received less
| than 100000 from the automatic cashier.
| Yet the Department expended S74 PTS for
this wholly unnecessary machine The
total amount that the perpetrators of
! these frauds themselves received can not
be definitely learned. but 1t viii agkre-
gate between 100000 and S4OO,0 O0 while
the loss to the government Considering
the unnecessary supplies that have been
purchased and the inferior quality Of
those furnished by fraudulent contract
ors. can not be estimated with any de-
gree Of accuracy.
AS the gross abuses have been
brought to light they have been prompt
| ~ corrected by the proper departmental
officers. Contracts where fraud has been
discovered have been annulied.
.rhe results OF the Investigation DEM
onstrate that all travelling agents OF the
| Departnent-sueh as assistant superin-
tendents OF salaries and allowances. 81
the free-delivery service, the Railway
Mall Service, and the registry system
and inspectors-should be placed under
one organization.
= number Of changes should be made
in the organization OF the Department In
order 70 provide q more perfect check
on thu operations Of various divisions and
some restrictive legislation Affecting the
divisions OF salaries and allowance, 81
rural free delivery and posaibly otlierl
may be necessary. What the service
most needs. however Is honest, lntolli-
gent, and vigorous administration. The
corruption disclosed - not due to Ial
49,