Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-10
CHARGES OF SCANDAL
ALLEGATIONS REGARDING ST.
LOUIS FAIR COMPANY.
Questions to Be Investigated by the
Government Commission-Senator
Carter's Statement.

Charges of scandal in connection with the
granting of medals. diplomas and awards
and of the salvage contracts for the re-
moval of the immense fair buildings are be-
ing made concerning the affairs of the st.
Louis Exposition Company. About 10000
awards were made by the exposition, and 1t
Is claimed that of this number seventy
five or one hundred were afterward changed
in favor of other beneficiaries The other
charges are in connection with an award
to a Chicago concern of a salvage con-
tract, it being claimed that the company in
question was shown special favors. 1t is
further alleged that relative of one of the
high exposition officials held an important
place in this Chicago concern.
Senator Thomas II. Carter of Montana.
who has resigned his position as president
of the government exposition commission,
says that the unsa satisfactory conditions will
be investigated by his successor, ex-State
Senator John d. Waite. and the other men,
bers of that body The following state
ment was made by Senator Carter concern
ing the work of the commission:
Work of the Commission.
1.-THE commission has on hand the task
of preparing and filing with the President
of the United Gates a complete financial
statement, from the beginning of the ex-
position to June 1, 1905. Monthly state
ments of the receipts and expenditures of
the exposition. and a general summary of
its financial condition, were made by the
commission to the President up to and in
Guiding January l, 1904.
THE commission is now making gen.
eral audit of the accounts of the exposition.
with a view to showing not only the re-
ceipts and expenditures. but the outstand-
ing obligations or liabilities. This Will be
. carried down to June l. ~
There are two unsettled questions re-
naming. The first involves the rights of
the national commission to approve awards
made by the exposition company on COM
petitive exhibits, and to investigate charges
of alleged fraud, bribery and corruption
connected herewith The exposition COM
pany has steadily refused to submit the
awards for approval or investigation, as re-
quired by the apparently clear provisions
of law.
"A case it now pending before United
States Judge Pollock of Kansas, which, it
is hoped, will result in opinion settling
the right of the national commission to ap-
prove awards and investigate alleged frauds
connected with them.
Alleged Partially.
1.-THE second subject remaining to be
considered by the commission involves al
legged collision in the sale of the exposition
buildings and all the property of the ex-
position at what is said to be an inadequate
price received on a contract made without
fair competition or publicity. 1t is claimed
by numerous parties that through the fall
ure of the exposition company to fairly de-
scribe the. property for sale a profit of
more than 81, 100000 was given to the ia
vored bidders, which would involve a loss
to the United States of one-third of that
sum.
TT remains for the commission to
tain and, report to the President the facts
concerning this transaction. 1t may be
found that the exposition company has
been misrepresented, but in any event it Is
important that the facts may be known
that the Treasury Department in making
final settlement with the exposition COM
pany and Congress, should it elect to deal
with the subject, may be advised of the
facts in the case
Governments Only Interest.
1t was stated at the Treasury Depart
ment this morning that the governments
only interest in the alleged fraudulent
awarding of contract for removing one
of the big fair buildings to favored firm,
was as a preferred creditor. If by such a
contract the government were to lose part
Of its share of the surplus earnings of the
Louisiana purchase exposition that would
Of course form basis for action. The ma
tional government, the city of st. Louis
and the citizens of st. Louis are the three
preferred creditors, and are to. share pro
rata in any surplus that may be left.
At present however, nothing is before
the Treasury Department on which an in
quiry could be based, and the whole mat
ter of the alleged fraudulent awards and
contracts will be left to the national ex-
position board Of nine members to make
such investigation and take such action as
it shall deem necessary.