The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-05-21
WITNESS H. j. BARRETT
LOQUACIOUS ON STAND
Continued from First Page)

Il ~
themselves within the scope of the Post
office Departments official. protection.
yet would not be on a good business
basis.
This caused the witness TO explain at
length how investment companies con-
Quoted their schemes. He declared any
scheme was fraudulent, II il could not
finance out" on its actual business, in
stead Of having 10 draw upon the prin-
cipal paid in by new investors TO make
up dencits In earnings promised to old
investors.
Looks Over Document.
Major Conrad handed the witness an
official document and asked him wheth-
er he had not gone over it carefully and
interlined # with changes.
Witness said he had run through
it" and Major Conrad intimated the an
swer indicated the witness had not suf-
ncient appreciation OF It's Importance.
"Oh. you need not caution me about
this. suggested the witness.
An. wei: ] VIII not caution you
again., replied Major Conrad. in a tone
or surprise at witness remark.
Some of-Hand Talk.
A short time later the Government
special counsel read paragraph from
the Barrett opinion.
I'm very glad 10 have had you read
that" commented witness. when Major
Conrad had concluded.
m very glad II you are glad" re-
turned counsel. who continued. in sar-
castle tone: "Of course, you know. We
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 1 can enHghten you a little
further. II you would like"
why ! will be very glad to have you
90 So deferentially replied Major Con-
rad. with the accent on the very"
The Lack of Reports.
The absence Of reports from postohice
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 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 to evade the fraud order. Their.
had been seven orders issued in those
years. on reports OF inspectors.
Major Conrad's review OF previous re-
piles by the witness led TO remarks by
Mr.. Worthington in "A critIcisiny kev.
Don't let Us stop on ny-specks. -
exclaimed Major Conrad. I'm an exas-
rerated tone. He and Mr. Worthing-
ton had ar exchange Of repartee. end.
ing with the assertion OF the special
CO unsel that no one was trying 10 take
advantage Of misstatetnent-.
4 am talking to intelligent men," de-
elared Major Conrad referring TO the
luly. and they VIII not fan 70 under
staho the value Of these things"
Fraud Orders Stopped.
The sudden falling or in the issuance
OF fraud orders after General Ts-Ecr sue
ceeded General Thomas was taken t,p
How do you explain this?' asked the
special counsel There were 1ea fraud
orders issued in the three years from
1884 to 1897. and none In the next three
years"
Witness explained this by saying that
General Thomas plan had been 10 iss1.
fraud orders 20 continue until the pIans
had been made acceptable 10 the de-
partment Later this had been changed
80 as 60 give the companies opportunity
10 amend their plans 50 as 70 avoid the
Issuance OF fraud orders
Major Conrad took up the previous
statement Of the witness that he had
been shocked" 10 discover IN 1900 that
50 many companies had been IN exist
ence without having reports from in
spectOrs on them.
Witness assented 10 this reference.
Settled by the Court.
In response 10 a query why there had
been no such reports witness said; .You
will have TO ask the inspectors about
that" Later. in reply to a similar
question. Barrett said he could readily
explain why II had been
This was promptly taken up by Major
Conrad and attention called TO Il. His
comment was interrupted by Mr..
Worthington. who objected 90 Opposing
counsel putting an Interpretation on
witness statements and quoting them az
replies"
This charge incensed Major Conrad
who started 10 reply
The court took the matter IN hand and
reviewed what witness had said. accord