The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-30

| lYneF ana Barrett were 1nQ1cIGQ On
October B by the grand jury for the
District of Columbia for conspiracy to
defraud.
MONEY-oRDER SYSTEM.
For supply money order forms for
four years from September A. 1908, the
| bid of Paul Herman was $44,948 less
than that of the Wynkoop Hallenbeck
Crawford company. James 7. Metcalf,
| superintendent of the money order SyS-
tenn, asked Herman to withdraw his bid
| so that the Hallenbeck company, where
! his son was employed, would bet the
contract. He assured Herman that if
he did so he would have him reinstated
| in the position he formerly held with
| that company Metcalf knew that such
withdrawal would cost the department
about $4,000. For this action of Met
calf's the postmaster general summar-
lily remover him from office.
| Mailing of books.-In 1899, upon Met
calf's recommendation the Wynkoop
Hallenbeck Crawford company was
given the contract to ship the money
order books to postmasters, for which
it was to receive 314 cents per book
Afterwards, upon Metcalfs recon-
mendation. the price was increased to
Az cents.
1t was further discovered by the in
vestigation that MetcaIfs son, who is
employed by the company, was receiv-
ing Is cents per book for all of the
books shipped by the company under
this arrangement. From December, 1899,
to May, 1903. he was paid $9.547.17 in
addition to his legitimate salary.
Inferior paper used.-The investigation
shows that Inferior paper was being
used in the printing of the forms and
| that Metcalf knew this fact, but made
no effort to require the company to adj
here to the specifications in respect TO
paper.
Metcalf made other unjustif1able and
| reckless changes in dealing with the
Wynkoop Halienbeck Crawford COM
pany, which resulted in loss to the de-
partment of nearly $4,000.
Combination of printers.-It appears
from the correspondence between ]. 7.
Metcalf and ]. Horace Mcfarland, that
Metcalf was a party to a combination
of the four principal bidders for the
purpose of raising the price of money
order supplies at the last letting. When
the bids were opened it was discovered
that the prices of printing were advance
ed about 80 per cent. When knowledge
of this combination was brought to the
attention of the postmaster general he
refused to approve the awards, and or
dered a new letting. The result was that
the combination went to pieces, and the
department saved $51, 124.16 on the con-
tract.
On October 5. 1903. ]. T. Metca1f, N.
R. Metcalf, and H. c. Hallenbeck were
indicted by the federal grand jury of
the District of Columbia for conspiracy
TO Q6IEauQ the government.
DIVISION OF FREE DELIVERY
August w Machen entered the postal
service as a clerk in the Toledo, Ohio,
postoffiee, and was appointed assistant
postmaster in 1887 by Postmaster Geo.
E. Lorenz. On July 81, 1900, Lorenz re-
tired from Office. In 1898 Machen came
to Washington in the nope of securing
some kind of federal position under
President Cleveland's second administra-
ton. On May 6, 1893. he was appointed
| assistant superintendent of free delivery,
and on September Is following he was
made superintendent At that time he
was a bankrupt financially, with num-
erouS judgments recorded against him.
When he left Toledo he borrowed sums
of money from friends, promising to re-
pay these loans out of the first salary
that he received, which he failed to do.
Various fraudulent representations were
made to secure loans. and upon one oc-
casion he even resorted to forgery.
simple statement of facts will give
the dearest idea of Machen's methods.
Carriers Straps.
On September Is, 1898, four days af-
ter Machen became superintendent of
free delivery, he wrote the first assist
ant postmaster general recommending
that leather straps be substituted for
Irvine used by letter carriers in tying
up their mall stating that to equip the
service WOu1Q not cost more tndn $lsf90
year. The recommendation was ap-
proved, and Machen ordered several
thousand straps from George D. Lamb,
of New Haven, Conn. Up to the time
of Machen's removal over 100000 straps
had been purchased. at cost of $137,-
217. 80, or over $14, coo a year.
On July "a, 1900. the postmaster at
Worcester. Mass, wrote the department
asking permission to buy carriers straps
from a local dealer. stating that he
could buy them for about half the price
the department was paying. Machen re-
fused this request, stating:
The straps for this year were purchased
by Mr.. George D. Lamb. in accordance
with contract with this office
This bold statement was made in the
face of the fact that no contract had
ever been made, Machen buying the
straps from Lamb at price fixed by
verbal agreement between them
George D. Lamb is now dead and the
business is conducted by George B. 3.
Lamb. his son. who advised the inspec-
tors that he knew nothing of the details
Of his fathers arrangement with Ma
chen, but that q man named w c.
Long appeared at his fathers office at
regular intervals and collected Z5z cents
for every strap furnished During the
nine years that these straps were used
Lamb paid Long contributions aggre-
Co4ino aFa444 H9f4aha a mart nf which