The Washington herald., 1908-01-07

Edwin NJ Van Dyck. former chief Of
the ink division of the Bureau OF En-
craving and Printing, and Victor G.
Bioede, Of Baltimore. president of the
Victor C. Bloede Company, Of Balu-
more, were yesterday indicted by
the grand jury for conspiracy to
defraud the government Of the United
States out Of between $4,000 and $4,000
/ in connection with the sale OF ink by
the Bloede Company 10 the bureau.
Attorney S. c. PeeIle, representing Van
Dyck who had been advised by the
| District Attorneys office that the indict-
ment would be returned was on hand
in Criminal Court No l when the grand
/ jury reported. Justice Stafford fixed
| bond I'm the case OF each Of the men at
Slo0OO. Neither Van Dyck nor Bloede
was in the city yesterday, but Attorney
Peelle stated that both would give them
selves I'D to-day, when a bonding COM
pany will qualify as their surety.
The men are indicted for violation Of
section $40. of the Revised Statutes OF
atty Of from one 10 five years for de-
frauding the government. or a nne or
both. 1t is the same statute under which
William G. Crawford, who was indicted
and convicted for defraudiEg the Post
Office Department out Of a large sum of
money. in connection with the sale Of
straps for letter carriers satchels. TO the
government
The indictment returned yesterday
charged that Van Dyck, in his capacity
as chief OF the ink division of the bureau
and Bloede, as president Of the Bloede
Company, entered in an agreement
whereby the Bloede Company was TO pay
10 Van Dyck a certain percentage on an
money paid the firm by the government
for inks sold to the Bureau of Engrav-
ing and Printing.
Charge of Conspiracy.
The indictment charges that Van Dyck.
Ia his official capacity as chief OF the
ink division and chemist has TO pass
upon the value and merits of all ink
samples submitted. with bids for sup
plies needed by the bureau. II is then
charged that he had arranged to give the
samples Of the Bloede Company the
preference. regardless Of their merits.
and 10 further the interest OF the Bloede
Company IN securing contracts for ink
The Indictment charges that. as result
Of this agreement and conspiracy.
the Bloede Company paid to Van Dyck
sums aggregatins between 5000. and
$4,000.
II is then set forth that tn, conspiracy
arranged for the Bl0ede company to sub
nit bids annually for supplying tn bu-
Teau with hard black color, accompany
ing their bids with samples, that these
samples were passed upon by Van Dyck.
and upon his report the contracts were
let il is alleged that in nearly all cases
Van DyCk's report showed that the Bl0ede
samples Of ink were the best. and as a
result the company secured the contracts
over ali other competitors. II is further
alleged that under the agreement be
tween Van Dyck and BlOede that each
year the contract was awarded 10 the COM
pany from July ], 1871. 10 July J. 1906
during which time the bureau used 225 900
pounds Of ink of that concern. at the rate
Of 45 cents d pound and that for a Ger
tain period the company paid to Van Dyck
for each pound of ink sold to the bureau
10 cents a pound. or the sum OF $4,000. IN
1893 1t IS alleged that this payment was
cut down 10 5iz cents, the last payment
being made in the summer Of 1896
The indictment alleges that when the |
bills were presented for payment they
were passed upon by Van Dyck. when a /
check would be sent to the Bloede COM /
pany. il is alleged that as soon as the /
arVar- -s.r.sl
ward to Van Dyck his percentage, which /
generally amounted 20 $500, and that
after $4,000 had been paid each payment |
to him amounted to Sl.390. n New York /
draft being uset for payment 10 Van Dyck. |
Witnesses Are Many.
The case against the two indicted men
was worked up by Secret Service Agent |
William II. Moran. and he was the chief |
witness who appeared before the grand |
jury. Director Thomas J. Sullivan also /
testified before the grand jury. as did |
the following Frank E. Ferguson, an ac-
count8nt at the bureau; William Long. /
engineer Of tests; Harry T. Leach, of the /
inkmaking division; Thomas F. Roche. /
printing division; John r. Hill. chief OF /
the engraving division; William c. Nc
Kinney. chfef of the printing division; !
Norman Underwood, present chief Of the 1
division. who succeeded Van /
Dyck; James Z. NOwlin and Carl Schon. |
of the Bloede Company; Albert E /
Thomas. Charles II. Carter. Charles &. |
Homer, jr., J. B. Swan, Benjamin + |
Harris. a. Rosseau, and Henry H. /
Flather.
Van Dyck resigned as chief of the ink /
division in June. 1905. A little over a /
year ago there was a rumor Of irregu- |
larities in connection with the purchase OF /
ink for the bureau, but it apparently |
blew over.
II Is also said that the present indlct-
ment grows out Of lawsuit in Balti-
more against the BIoede Company. in /
which it developed that Van Dyck was
the patentee Of the particular kind of ink
which figures in the indictment returned /
yesterday, the developments in that case
furnishing the bureau officials with infor-
nation which had not come to light dur
ing their investigation Of the rumors re-
ferred to above.
Almost a CeDtenarian.