The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-07-30
DOUBT FRAUD STORIES.
Officials Do Not Credit Reports
from the Southwest.

Washington, July 30.-C. z. McGin-
mis-, the assistant superintendent of the
railway mail service, who has been on
an inspection tour in the southwest,
reached Washington this morning. The
second assistant postmaster general
stated this afternoon that he did not
know of the extensive frauds which IL
was reported McGinnis unearthed
while in Indian Territory. He was much
inclined to belittle the reports.
Careful inquiry made it apparent that
the postal officials do not know any
thing about the situation in the south-
west. Tomorrow when an opportunity
presents McGinnis will probably De
questioned carefully. That anything SO
important as the reported star route
frauds in the southwest should nave oc-
CURED and the fact not reach the sec
ond assistant postmaster general may
be taken to indicate either tnat tnere
was not much Importance in whatever
developments the McGinnis reports VIII
bring out, or that the postal oHiciais
here are not in touch with what is reai-
ly occurring in their division OF the re-
sponsibility of the department
So far the second assistant Dost-
master generals Office has not been IN
volved in any way in the fraud lnVes-
legations which have been IN course.
Rumors have, however, been pusy Win Win
affairs of the office, particularly the
matters of weighing the mans anu
arranging the compensation of the ran
roads. The star route INVESTIGATORS
have been in course for some time
McGinnis has been in the southern
states for a number of weeks. he mas
reported violations of contract ana
suggested some changes in the manner
of handling the star routes snort
time ago, when the contracts for the
star routes were to be let, the second
assistant announced that it was de-
terlnined to require that those who took
the contract should reside on the routes
I RI
violations in connection with the star
routes have been cases where the real
contractor for the service used the
name of the local bidder to secure the
contracts. Wherever this has been
/ thoroughly established there have been
new lettings of the contracts, but MOTH
ing approaching criminal prosecution
or oven a criminal charge.
1t was learned today that his ONCE
I has recently come in for some severe
criticism over the action in reletting the
I big mail hauling contract in New York
city. 1t develops that the contract Tor
hthe hauling was let two years ago for
| four years A bond was exacted, but
later, with the permission of the depart
ment, the contractor Sublet MS con-
tract Now that the two years has eX-
pired both the contractor and the sub
| contractor refuse to carry out the con-
tract. The bonding company disclaims
4 responsibility because of the subletting
of the contract. The department was
! Obliged to let a new contract yesterday
at an advance of $500. 900 over the price
agreed upon with the contractor The
bonding company will be sued, but II
has been said that the second assistant s
! office did not make the original con-
tractors bond tight enough to hold
either one and that in the end the gov
ernment will have to pay the 100000.
Acting Postmaster General Wynne to-
day signed the contract of Paul Herman
of Rutherford, n. J.. to furnish the
money order forms to the government
during the next four years. The first
forms are to be supplied under the new
contract on September 4. The signature
of the final papers ends the fight of the
| old contra ctors. the WynkOop, Hallen-
beck K Crawford company of New York
! having been Maging ever since me
award was made TO Herman. former
employe of that company. Herman has
met all the requirements of the govern
ment and has given bond of $50.Oo0-
The federal grand jury here resumed
its consideration of postal cases TO-DAY,
| hut did not report the expected lndlct-
ments. Assistant District Attorney Tag
| gart was uncertain when the jury would
report It is known that there IS at
least one witness who is to be examined
| regarding matters concerning George
| w Reavers. already under indictment
on account of his alleged connection
with the government purchase OF postal
II is stated at the postofice depart
ment that there is nothing particularly
significant in the visit of Mr.. Payne. the
postmaster general. to President Roose-
Welt at Oyster Bay. Mr. Payne is on the
return trip from the Maine coast, and
the stop at the presidents home VIII
NOT materially delay his arrival IN
washington. The president naturally
desires to confer with the postmaster
general. and as the former will not he
in the capital for some time, the pres
ence of Mr.. Payne affords a good OPP
49, For Ia ference.
a, mannnaEAn rRIl