The Washington times., 1914-05-01
GRAND Jury MAY
)& CALLED To ACT
! ON S45,219 CLAIM
BurIeson Charges That Used
Adding Machines Were Sup
piled on Contract.
WITNESSES SUMMONED
AND EVIDENCE COLLECTED

dispute between the Postmaster
Gee-srsl and the Burroughs Adding
Machine COMPANY. of Detroit. Mich, in
roiving claim of s45, 2l9S2, by the Gov
ernment for alleged violations of con-
tracts by the corporation in furnish
ing adding machines. is the subject of
investigation by the Department of JUS
tice.
Already the matter has been submit
ted to United States Attorney Ciar-
ence r. Wilson, by Attorney General
McReynolds with view to determining
whether there is evidence to. warrant
indictments by the grand jury of the
District
About ten witnesses have been sum-
moned by District Attorney Wilson,
presumably for the purpose of pre-
senting the case to the grand jury.
Postoffice inspectors are gathering in
formation, according to officials of the
Postoffice Department, and IT is pos
sible that other witnesses will be call
I'd to testify.
Proceed Against Officials.
II is stated on high authority that
the proceedings ars directed against
certain officials of tie Burroughs Add
Ing Machipe Company.
Postmaster General Burleson claims
that under contracts 3a6 adding ma
chimes bought from the company during
were not new and perfect, being sec
ond-hand or trial worn, or old. he
Claims that under the contracts when
machines were not up to sample" the
Postmaster General had right to fix
reduced price or demand a rebate.
Taking advantage Of this alleged
clause in the contracts. Mr.. Burleson
has demanded that the company refund
TO the Government the sum of $i5, 219.S2
He has submitted the facts to the
Attorney General. outlining his con-
tehtons and explaining that postoffiee
inspectors are prepared to appear in
person and submit evidence to SUBJ
stsntiate the claim. w..
Mr.. Burleson submitted the dispute to
the Attorney General more than a
month ago, and since then the Depart
ment Of Justice officials have been con-
Quoting an inquiry. The investigation
includes an inspection OF the many add
ing machines owned by the Government
to determine IL there are more alleged
secondhand or WORKOUT machines.
Matter of Opinion, Claim.
Attorneys for the Burroughs Adding
Machine Company, 1t developed today,
are william F. McCombs, chairman of
the Democratic national committee, and
Leo NJ. Butzel. of Detroit. They repre-
sent that the dispute is simply a matter
Of difference of opinion between the
Government and the company. or an IN
depreciation of their contracts
In behalf of the company. it is as
serted that there is no need Of action
by the Department of Justice, as the
controversy probably can be settled
amicably. The claim is made that the
machines were sold to the Government
in the same manner as machines are
supplied to other customers. These are
the contentious Of representatives uf the
corporation:
II is stipulated that any machine win be
taken back II II does not do its work
satisfactorily in every respect.
That in all the history Of the company
no machine has failed in this manner. |
and no request has been made that a |
machine be taken back. ~ |
That all machines are sold on trial TO |
new customers.
That 5000, 900 worth Of machines are |
now in the hands Of prospective Gus
toners.
Parts Used Again.
That il is a fixed custom to give p-os- |
pective customers thirty days in which |
20 determine whether the machine Is |
"a tisfactory.
That machines tried in this way and |
not sold are shipped back TO the fac |
tory and their component parts dis |
tributed for use in construction Of |
other machines.
That upon this practice rests all the |
claim Of the Government that old or |
wornout machines were delivered.
That the Government has never as
serted that any machine delivered has !
failed.
There is still much secrecy surround |
ing the investigation of the case.