The Washington times., 1915-09-08
MAIL CARRYING TRUST
IS Barred BY OFFICIALS
Two Arrests Made in New York
Following Investigation for
Last Several Months.
Continued from First Pageo

where competition was already smoth-
cred. to offset the low bids,
Careful Inquiry has been under way
by the department ever since. OriFi-
nal bids y the and pig new Wested bids sdve %
tised, after emissaries Of the Post
master General had visited the cities
affected These new bids have just
been opened.
the "star route service scandals:
Congress passed a provision that pld-
derE for mail service must be resi-
dents of the State or city where DID
ding. This has been overcome by the
Cassidy organization. 1t Is declared.
by the organization of separate COM
ponies with a local president or man.
aEer.
and squeeze the department when COM
petition had been stif1ed: Contracts are
let every four years. BY bidding. at
sGst %ssre hers al and of hfs
screened wagon service contracts.
which amount to half a million a year
" more in the big cities. could be COM
Wandered by one organization.
One Instance Mentioned.
The complaint against Cassidy In
New York mentioned only one instance
of alleged bribery. through which the
company is said to have avoided pay.
ment of 5000 in fines; postof1sce m
a wagonload of records at the office OF
the Postal Transfer Service.
The Postal Transfer Service entered
into 4 contract with the Government In
mails for a period Of four years at a
mileage rate which. computed on the
basis Of the amount of mail matter han.
died in the district at the e. time a would
This amount was subject to restate.
Ment. however. meaning that an in
crease of business and the consequent
elled by the Postal Transfer vehicles
were to bring a proporttonately larger
INCOME at the end Of each year.
The contract included a stipulation
to the effect. that fines were to be
failure to deliver mails. for any de-
lay or interference with the prompt
delivery Of mail at the places re-
ouired herein. or for the carrying OF
| ferior to that hereinbefore specified
or allowing the mail to be wet. in
jured, lost or destroyed. or for any
delinquency or omission OF duty set
forth in this contract"
Tricks To Dodge Fines.
Any violation Of the contract were
to be reported by the postal clerks In
charge of the substations where the
mail was received to the superintend-
ent of mails. 1t was the duty OF
Cadigan to open these complaints. re.
| cord them in q book and require the
| company to answer them. II the
| answer or excuse was not satisfactory
| the matter was turned over to the
| superintendent who transmitted the
report to Washington. where tho
Postmaster General fixed the amount
| Of the fine and deducted 1t from the
| company's compensation.
Cadicar. 1t is charged. had been Sc.
| cretly on the payroll of the Postal
Transfer Service since February, I, 1914
! and in that time had destroyed t.lCt
| complaints against the company. which
would have cost 1t at least $a0,0O In
| f1nes. Cadigan, 1t Is alleged, received
| from S5 to $50 a month for this. 1t Il
| said that he at rrst held back reports
and later falsifod the records on his
books to make 1t appear that the COM
pany had made satisfactory answer to
| the complaints. thus preventing the re-
ports from ever reaching Washington.
Then. 1t is charged. he found 1t more
| effective to destroy the reports imme-
diately upon receiving them, failing ia
even record them In the books
More sensational allegations concern
ing the company's methods Of increas-
| ing its income are expected If the Fed
eral grand Jury takes up the case.