The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-07-17
Inspectors Working on Post-Oftice
Scandals Will Recommend
Several Arrests.
HOW BIDS WERE AWARDED.
NOnmanufacturers Secured Con
tracts and Divided Profits With
Makers of Goods Whose Bids
Were Too High.
The REPUBLIC bureau.

18th st and Pennsylvania ave-
Washington. July 16.-Interesting deve!-
opments are expected as the result of the
Post Office Department investigation within
a very short time. 1t is understood that
the inspectors who have been hard at work
for more than three months. have sue
ceeded in unearthing a condition of affairs
that will warrant the arrest of two more
officials of the Post-Office Department and
most likely a third one.
Extra precautions have been taken to
keep from the public any inkling of who
the persons are who may be arrested.
The Grand Jury of the District of Columbia
has had brought TO its attention within the
past few weeks an array of evidence that
is said to have fixed beyond any reasonable
doubt the minds of the jurors.
Postmaster General Payne, before he left
Washington on his ocean journey. expressed
himself to friends as expecting important
arrests during his absence. Assistant
United States District Attorney Taggart is
indictments.
PECULIAR FACTS IN
CONNECTION WITH BIDS.
Representatives of the Wyncoop-Hallen-
beck-Crawford Company of New York.
WHICH WIS an Unsuccessful ltl INC
contract for printing money order blanks
for the Post-Otfice Department for the next
four years are trying to prevent the con-
tract going to Paul Hermann of Ruther
ford. n. j., who was the lowest bidder for
the work and who has given the department
bond of $4,000 as a guarantee that the
work shall be properly performed.
Postmaster General Payne is satisfied
cote IL, n
ding for the contract and is also pleased to
know that the department will save $4,000
by giving him the contract There are
few details that are being considered by the
department.
The disclosures thus far in the investi-
cation have been of such a character that
hereafter greater care will be exercised in
the awarding of all contracts.
More than ordinary attention Is being CIV
en- by the inspectors of the affairs of the
post offices in New York City and Brook
Ign.
1t Is proposed to know how men not en-
gagged in either the sale or manufacture OF
certain lines Of supplies succeeded in get
ting contracts, undertaking usually other
competitors engaged in that particular line
of business ana then giving the firms who
were unsuccessful the order TO manulac-
ture the goods. dividing the profits about
equally.
The inspectors have been cautioned to be
relentless IN their efforts to ascertain
whether there was a combination of the
leading manufacturers in the lines of goods
purchased. who agreed to permit an outside
person to put In the lowest bid and then
divide the work among them at price
wherein all made a better profit than il
they had successfully bid on the contract
in close competition, or whether some of
the department officials had friends who
were allowed to get on the inside suff-
GENTLY to make the lowest bid.
Many complaints have reached the Post
Office Department since the investigation
was set on foot. AS rule they have come
from dissatisfied bidders. nearly all of
whom declare emphatically that they were
Disseminated against If the bids have been
obtained through collision between heads
of certain departments and contractors. it
would indicate. it is argued. that the man.
ufacturers were themselves asking the Gov
eminent the highest prices.