The Red Cloud chief., 1903-12-04
A RECORD OF GRAFT
Report Of Assistant Postmaster
GENERAL Rristow Uncoveso II
FIND OF FORTY INSPECTORS
The system ~ Organized CorruptIon
Began In 1893 aud was Checked In
10o3-i0 Years OF Brazen Theft

In a brief filed by Fourth Assistant
Postmaster General J. l.. Bristow, with
President Roosevelt, devoted to the
postofice scandal Investigation, the fol-
lowing Is said In conclusion:
For the purposes of this report. the
Investigation ordered by you on March
z has been completed. In the prepara-
ton or cases for trial where indict-
ments have been found. information
may be secured which will necessitate
further Invests lion and possibly in
volvs persons not nov implicated.
o than forty inspectors have been
employed upon this work, some of
them continuously every day since the
investigation began. The records of
LOCO postofflces have been examined,
and the files of many divisions of the
department, covering a period of from
SIX to ten years, s%crutinized.
The system of organized corruption
that has been disclosed began in 1903
and continued until stopped by this in
vesugation. The amount of none Sc
cured by the corrupt officials and their
~confederates is small az compared TO
tho total loss to the government. To
ILLUSTRATED: There is no evidence that
Louis received any compensation from
Ault Il Wyborg, yet during the first
year OF his administration III, sypcndi-
lures for canceling ink increased over
$4,000.
II does not appear that Kempncr re-
ceived money from the manifold COM
pany, yet the cost of manifold supplies
Increased more than $40, 900 a year.
Barrett received but 81 5000 from Ar
mold. yet that company defrauded the
people out OF over So, 900, 0OO.
Machen probably did not receive
o than $26 900 from the Croft fast
ener. yet the government has paid an
proximately $3.50, 600 for that device,
which represents a net loss. since the
department continued. by the terms of
the contract for letter boxes. TO nav
for the original fasteners.
Beavers and his associates received
less than 100000 from the automatic
cashier. Yet the department expended
$I4,275 for this wholly unnecessary ma
chine.
The total amount that the pcrpetra-
tors or these frauds themselves re-
ceived canno be definitely learned. but
II VIII aggregate between $500, 900 and
100000. while the loss to the govern
ment. considering the unnecessary sup
plies that have been purchased and the
Inferior quality Of those furnished by
contractors, cannot be esti-
mated with any degree Of accuracy.
The results of the investigation dem
onstrate that all travelling agents of
the department-such as assistant su-
perintendents Of salaries and allow
ances. of the free delivery service. the
railway mail service and the registry
system and inspectors-should be
placed under one organization.
AS a result Of the investigation four
on1cers and employees of the department
have resigned and thirteen have been
removed. Forty-four indictments baye
oeen found. involving thirty-one per-
sons. ten OF whom have been connected
with the postal service.
Attached to this report is a list Of
those who have resigned and those who
nave been removed; also a complete
list or the indictments and the persons
involved.