Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-05-03

what he declared tqy be the fact that from
connection with the issue OF fraud orders.
to give supposed offenders an opportunity
to comply With theS law. OFTEN was
very serious question as to where the line
should be drtawn In issuing fraud orders and
particularlyaso as regards bond investment
companies.
The situation was discussed with Gen.
Tyner by eminent counsel, he said, ana IN
a number OF cases. Gen. Tyner agreed to
suspend the fraud orders and submit the
issues to the1 courts for settlement
AS the progress made by the courts was
view OF having the Attorney General TO de-
eide whether fraud orders should be IS
sued against certain concerns, but the At
torney General held that the matter should
be attended to In Gen. Tyner's office.
Mr. Barrett was assigned to investigate
Ine cases and write an opinion thereon.
Lnat opinion. Attorney Worthington de-
rett decided to enter into practice with Mr..
J. Henning helms OF Baltimore. Md 1t
was denied that Barretts professional card
was sent to the concerns involved by the
opinion written by Barrett.
Attorney Worthington admitted that after
leaving the employ Of the government Bar
rett represented about twenty bond invest
ment concerns. Before resignfng, however,
he had asked the then Postmaster General,
Charies Emory Smith. II 1t would be proper
Ior MIN to represent the concerns in Ques-
t!on, ana was informed that 1t would be en-
tlreiy proper for him to do so. It would be
a preposterous thing, said Attorney Worth
angton, II man could not engage In pri-
Vate practice before government depart
ment merely because he had previously
been employed therein
The First Witness Called.
The first witness called by the prosecu-
ton was Mr.. B. w. Taylor, chief clerk of
the Post Office Department, who produced
certain official records, including letter.
press copy books and volumes containing
the reports of Gen. Tyner for the years
1893, 1900. 1901 and 1902 The prescribed
dutles OF the assistant attorney general for
the Post Office Department and his concep-
tion OF his duties were made clear to the
jury by the reading of extracts from the
records produced by the witness.
Afternoon Session.
At the opening of the afternoon session
Of the court Assistant United States At
torney Taggart continued to read from
Gen. Tyner's reports, for the apparent
purpose of showing that the then assistant
attorney general for the Post Office De-
partment was hostile to bond investment
concerns. sl
W. 8. Nicholson, appointment clerk of
the Post Office Department, was called to
the witness stand by the prosecution for
the purpose of proving that Messrs. Tyner
office therein. The defense admitted the
truth of the allegations of the indictments
relating to the holding of offices by the de-
PENDANTS, so Mr.. Nicholson was not ques-
toned.
Assistant Attorney Webster on Stand.
Next to take the stand was Richard M
Webster, an assistant attorney in the Office
of the assistant attorney general for the
Post Office Department. He produced a
number Of papers and documents taken
from the files of his Office. including fraud
orders. and described the method of doing
business therein. E-S|
The examination of Mr.. Webster along
the lines indicated was in progress up to
the hour of ADJOURNMENT this afternoon.
Charge ofaConspiracy.
The acts charged as done to effect the OBJ
5ect Of the conspiracy Of which Tyner and
Barrett stand charged have been sum-
married as fo3lowseIOn December 5, 1900,
Barrett. under the title of assistant attor-
ney and acting assistant attorney general
for the Post office Department" submitted
an opinion In writing to. the Postmaster
General In relation to the cases referred
Tor investigation, wherein he stated SUBJ
stantially that IN the consideration of the
said question the various plans and
schemes Of business used by the compa-
niles last aforesaid were grouped as nearly
as possible into; classes, and that he had
omitted all feferenae to any company by
name, and had found, that the schemes and
plans last Aforesaid OF the companies last
aforesaid were either lotteries or similar
enterprises for the distribution Of prizes
by lot or chance, or were fraudulent within
the meaning or the statutes forbidding the
use of the mails in the promotion of such
enterprises; nevertheless, that If changed
and modified in some OF their features they
would not be Objectionable to the laws
aforesaid in their operation and conduct
that
able time should be allowed to the compa-
MES last aforesaid for the abandonment of
their said schemes and plans of business
after their attention had been called to the
necessity of modifying the same or for
making such changes as would eliminate
therefrom all Objectionable features before
action should be taken by the said Post
master General to deprive them Of the use
of the mails
Tynsr's Alleged Approval.
That Tyner Endorsed his approval of the
opinion in writing thereon, and he and
Barrett then. on December 8, 1900. prepared
a letter for the signature of the then Post
master General. approving the opinion. which
letter they procured him to sign Defen-
dants next procured the printing at the
government printing off1ce Of 500 copies Of
the opinion In pamphlet form, one of which
was sent to the Southern Mutual Invest
ment Company of Lexington, KY, together
with a printed circular signed by Tyner
officially, advising 1t that Its scheme and
plan Of business fell within one of the
classes mentioned In the opinion. It is
further alleged that the same course was
pursued with each Of the persons named In
the indictment. That on the same day Bar
rett mailed to each Of the persons and
companies a card announcing that he would
retire from his position on January /, 1901,
and then become associated with J. Hen
ming Nelms. member Of the Baltimore
bar. in the practice OF law in Baltimore and
Washington.
That on December 20, 1900, Barrett wrote
and mailed letter to j. P. Williams at
Louisville, who was then the president Of
the New Orleans Debenture Company, prac-
ticaliy soliciting engagement as attorney.
Charge of Withholding Report.
It is further charged that Barrett pur-
posely retained in the office Of the assist
ant attorney general. without action there
on, report of an official inspector charg-
ing that the Mutual Fidelity Company of
Baltimore was oDera ting Fraudulent scharoa