The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-05-22

General Harmon in this matter. The
letter was read
Major Conrad thought the witness had
thrown no new light on the matter and
insisted on the production Of any posi-
Bile evidence that the rule Of procedure
had been revoked or altered In any ma
terial view.
witness reply did not satisfy the
Government counsel. and the inquiry
proceeded to another matter
Altering Bond Schemes.
Counsel inquired what witness meant
by saying the companies could bring
themselves within the scope of the Post
office Departments official protection
yet would not be on a good business
basis.
This caused the witness 10 explain at
length how investment companies con-
Quoted their schemes. He declared any
scheme was fraudulent. If il could not
finance out" on It's actual business. in
stead OF having 10 draw upon the prin-
cipal paid in by new investors to make
up deficits in earnings promised TO old
investors.
Major Conrad handed the witness an
official document and asked him wheth-
er ne had not gone over II carefully and
1nterlined It with changes
Rather Free Replies.
Witness said he had run through
it, ara Major Conrad intimated the an
swer indicated the witness had not suf-
ficient appreciation Of it's importance
"Oh. you need not caution me about
this" suggested the witness.
"Ah. we'll; I VIII not caution you
again" replied Major Conrad. in tone
Of surprise at witness remark
A short time later the Government S
special counsel read a paragraph from
the Barrett opinion.
I'm very glad to have had you read
that" commented witness. when Major
Conrad had concluded.
I'm very glad II you are glad re-
turned counsel. who continued, In sar-
want to read only what you would like
to hear"
Major Conrad's questions had pro-
ceeeded but a little further when wit
ness Interrupted to say:
Perhaps l can enlighten you a little
further. If you would like
why. / will be very glad 10 have you
do So" deferenually replied Major Con-
rad. with the accent on the very"
The Lack of Reports.
The absence Of reports from postofElce
inspectors between 1897 and 1900 was in
quired into by Major Conrad. who asked
whether this was not due to a letter
sent out by Barrett, which said nothing
would be done until a test case had been
decided.
Witness made a lengthy reply. citing
the cases Of several investment com
panies which had changed their titles
In order 10 evade the fraud order. There
had been seven orders issued in those
years, on reports % inspectors.
Major COnrad's review Of previous re-
plies BY the witness led 10 remarks by
Dir. Worthlngton in criticising key.
Don't let us stop on hy-specks, %
exclaimed Major Conrad. in an eXas-
rerated tone. He and Mr.. Worthing-
ton had an exchange OF repartee, end
ing with the assertion Of the special
&C unset that no one was trying 70 take
advantage Of misstatenentT
81 am talking to intelligent men," de-
CARED Major Conrad. referring to the
JuIy. "and they VIII not fail to under
6tfAtA1 AlAE fstAAt OF THESE AniuHSs
Fraud Orders Stopped.
The sudden falling of in the issuance
Of fraud orders after General Tyner sue
ceeded General Thomas was taken up
How do you explain this?" asked the
special counsel. There were 1873 fraud
orders ISSUED In the three years from
1894 10 1891. and none in the next three
years"
Witness explained this by saying that
General Thomas plan had been to issue
fraud orders To continue until the plans
had been made acceptable TO the de-
paTtment. Later this had been changed
50 as to give the companies opportunity
10 amend their plans so as 10 avoid the
issuance Of fraud orders.
Major Conrad took up the previous
statement Of the witness that he had
been shocked" to discover In 1900 that
so many companies had been IN exist