New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-21
GRAFT" 40 PER CENT.
The Government MHIcted of Large
amounts By Syndicate.
[rRo,f THE TE1RrvE nrKEAU.l


Washington June 2O-The existence Of a con-
spiracy organized for the purpose Of defraudins
the government of 40 per cent on every contract
granted. and securing as nearly that percentage
as possible on every promotion given. is regarded
by the postofHce inspectors as having been virt1-
ally established by discoveries made within the
last few days. Evidence Of the operations Of
this syndicate has been found IN the free de-
livery, the salary and allowance and the legal
divisions Of the Postofice Department. and Post
master General Payne to-day ordered an mves-
tigation OF the money order and the dead letter
divisions 1t is believed by the officials that
Machen was the head OF this conspiracy IN
Washington. and that Beavers was his accom-
plice at this end Of the line.
The key TO the situation. however. according
to a prominent Postoffice official rests IN New
York. and it Is hoped that the unexpected person
will be indicted within the next week That ths
graft which the syndicate exacted was 40 per
cent is believed TO have been established by the
fact that such was the percentage which
Machen received on the Ietterbox fasteners, and
that Upton McGregor received a similar per-
ceatage on the mail bags. which purchased
for the free delivery division. It Is understood
however. that further evidence has been discov-
cred by the inspectors, although the facts ara
not yet disclosed
The Attorney General has decided to send an
d4u 10 ASSssCdnL ISLlSEdA rNOO0 % lAS
Postof1ce Department, and also to assign an
assistant to the District Attorney. Hereafter 10
will be the policy Of the department to prepare,
far as possible, the legal presentation OF
such cases as It Is desired bring to the at
tentfon Of the grand jury. to relieve the
present congestion IN the District Attorneys
Office. The assistant whom the Attorney Cen
eral will designate for duty IN the Office OF tbs
District Attorney will. It is announced. be thor
oughly familiar with the preparation OF tndict-l
ments, warrants. etc, that the extra strain
put on the District Attorney by reason OF tins
extraordinary number Of cases brought by tho
Postoffice Department may be relieved
The postal officials are extremely anxious tn
secure indictments of the persons against whom
they have preferred charges. They believe that
their cases are strong. and they fear tnar 1aii-
ure, due either to delay or insufficient tnrorrna-
ton, may be charged by political opponents 70
the Intervention of political pressure. There
fore, the decision OF the Attorney General To-
give the present legal force additional help IL
the occasion for great satisfaction
Pressure is being brought to bear 70 secure
the investigation OF the bureaus Of the Second
and Third Assistant POstrnasters General. but
no decision has yet been reached 1t IS al
legged that grave irregularities exist in both d.
visions, that the government pays an unreaSon-
able price for the transportation Of the mails,
and that in numerous instances newspapers
have been admitted to the privileges OF the sec
ond class rate which are not entitled 70 IL On
the other hand the charges made are by no
Postmaster General will feel that there is suf-
fcient evidence to warrant an investigation and
the disorgapiZation and unrest which would in
evitably accompany the procedure.