The Washington herald., 1908-01-08

On the indictment returned Monday by
the grand jury, charging them with con-
spiracy 10 defraud the government in
connection with the sale Of ink to the
Bureau of Engraving and Printing. Ed
win 81. Van Dyck. former chief Of the ink
division, and Victor 6. BlOede. president
Of the Victor g. Bloede Company, of Bal
timore. were yesterday arraigned before
Justice Stafford In Criminal Court No. /.
The men entered pleas of not guilty,
with permission 10 withdraw such plea
and demur TO the indictment If so advised
by counsel, by February 10. They were
released on bond of $4,000 each, furnished
by a bonding company.
Assistant United States District Attor-
ney Jesse Adkins, who conducted the IN
vestigation before the grand jury which
led to the Indictment Of the men, and
who prepared the voluminous indictment,
appeared for the government, and Attor-
ney S. c. Peelle, Of this city, appeared for
Van Dyck, while Bloede was represented
by Attorney Robert Biggs. Of Baltimore.
Acting as "A Chemist.
The Indictment charges Van Dvck with
receiving between $4,000 and $4,000 from
Bloede as a commission on ink sold 10
the bureau by the latter while Van Dyck
was acting as chemist and chief Of the
ink division.
An unusual feature OF this case is that
both of the indicted men appeared before
the grand jury Assistant District At
torney Adkins yesterday admitted that
both men asked permission 10 appear and
testify. and that they were permitted 10
do so, and he had cross-examiEed them.
Notwithstanding their statements, how
ever, the grand jury returned the indict-
ment
Van Dyck resigned from the bureau in
June. 1895. and Is now employed by an
ink manufacturing concern in New York.
Attorney S. G. Peelle, who represents
Van Dyck 10 a reporter for The Wash
lngton Herald last night made the fol-
lowing statement with reference to his
clients connection with Bloede;
In 1901 Edwin NJ. Van Dyck. who was
the chief Of the inkmaking division in
the Bureau Of Engraving and Printing.
invented a process for the manufacture
Of hard black for use in plate printing.
With tie permission Of the Secretary OF
the Treasury. he sold this process 10
Victor q. BI0ede. the president Of the
Victor Bloede Company, a concern en-
gagged in the manufacture Of chemical
specialties.
Payment of Royalties.
The arrangement between Mr.. Van
Dyck and Nlr. TlOede called for the pay
ment TO Mr-Xsn Dyck OF royalties on
each and every pound Of the black sold.
whether 10 the government or to private
consumers.
The black was tested by the bureau
in the spring Of 1901, and was awarded
the contract in competition with many
other blacks. The price at which il was
sold 10 the government was - cents Per
pound saving Of 10 cents per pound
over the black which had previously been
used IN the bureau.
While Van Dyck was the chief Of the
inkmaking division, he had no important
connection with the making Of the tests
under which the BlOede black was award
ed the contract these being made under
system of checks which absolutely pre-
vented any one person from controlling a
selection Of materials.
Tests made in the bureau after Van
Dyck had severed his connection with it.
both by officials Of the bureau and by a
committee Of bidders. gave the Bloede
black the highest rating. showing its in
trinsic merit and it is not cUntended that
the government was injured by the trans
action. but it is apparent that it was
saved many thousand dollars during the
years that the Bioede Company held the
contracts "