Democratic Sentinel, Volume 8, Number 38, Rensselaer, Jasper County, 17 October 1884 — STAR-ROUTE FRAUDS. [ARTICLE]

STAR-ROUTE FRAUDS.

Over $4,000,000 Stolen During Hayes' “Pure Administration” The Frauds Impossible Without the Connivance of High Officials. Powerful and Mysterious Influmees Pre* vent the Indictment of Many of the Big Thieves. And in Spite of the Convincing Evidence of the Guilt of Officials and Contractors, the Government Fails to Punish a Single Offender. [Washington dispatch.] The Committee on Expenditures in the Department of Justice which, during the last session of Congress, investigated tne Star Route prosecutions, has completed its report for submission to the House on reassembling. It details at length the history of the Star Route frauds from the Hayes administration down to the time of the commencement of the suits, and declares the frauds upon the service could not have been committed without the knowledge, co-operation and assistance of Thos. J. Brady, and that not only the contractors, but many other persons m high official positions in the Government, were either criminally cognizant of the frauds or guilty participants therein. It declares that the amount out of which the Government was defrauded in the Star Route mail service during Hayes' administration exceeds $4,000,000. At one time the Government was paying $450,000 per year for carrying mails to offices that yielded less than $12,000 revenue. The story of the attempt to arbitrate the Salisbury and Parker cases is told at some length. The report says: “The manner of procuring expedition was reduced to a science. The affidavits of contractors and others were used as the foundation upon which expedition and increased service were allowed. The brazen effrontery and perjury of these affidavit makers Is without parallel in the history of criminal prosecution. Affidavits signed and sworn to in blank were kept on hand by contractors just as they laid up supplies of grain tor their horses. These affidavits were the sole measure of the cost of the expedition, and no other evidence was required by the department for granting an increase of service and increase of speed, which cost the Government hundreds of thousands of dollars. A stock of those blank affidavits was kept on hand and the blanks filled when occasion was required to use them. And the papers filed with the department were on the basis of securing large and valuale additions to the contract. Thus perjury was made the basis of all the frauds perpetrated." A considerable portion of the reportis devoted to the subject of the employment and compensation of attorneys. The amount paid for this purpose, as far as ascertained, was $144,846, of which George Bliss received $57,732. A review of Merrick's testimony in explanation of the failure of the Government to secure conviction in two star-route trials is given, but the report says the committee had not time to pursue the investigation with reference to the attempts to bribe jurors. In reference to contractors not indicted the report says: “From a tabular statement from the office of the Second Assistant Postmaster General the amount which It is claimed could be recovered from Salisbury and Parker is estimated at $564,403. While the record of evidence in the Postoffioe Department st the beginning of the investigation by the department was meager against Salisbury and Parker, yet evidence subsequently procured through special agents sent out for the purpose showed that the operations of these parties as contractors were glaringly fraudulent, and that they should have been indioted and convicted, and prosecuted in civil suits for the necovery of large sums illegally obtained from the Government. Some mysterious and powerful influence must have operated to secure their Immunity.” The next subject Considered is relative to the failure to indict ex-Gov. Kellogg, and the report says Geo. Bliss seemed opposed to efforts looking toward such indictment, and upon this point continues~as follows: “There is a wide issue of veracity between Bliss and members of the Grand Jury as to the efforts made by Bliss to secure an indictment against Kellogg. The foreman of the Grand Jury, Mr. Mitchell, and Messrs. Willard, Edmonston, Stewart and Truesdell appeared before the committee and, each Corroborating the other, stated substantially that Bliss, after the evidence of Walsh had been concluded before the Grand Jury, stated that James B. Price was expected to arrive in the city the following day and would appear before the jury as a witness for the Government in that case, and secured an adjournment over on.e day on that account. This was on Friday, and the promise was that on Saturday Price would appear as a witness, intimating that Price’s testimony was necessary to make out the Government’s case. Oh Saturday, . when the jury met. Bliss announced the failure of Price to appear, and was compelled to submit the case on the verdict already taken. The jury then voted not to present the Indictment. Bliss stated that he did not promise Price’s attendance, but might have said to the jury that the case would be stronger when tried before a petit jury, for then they expected to have Price as a witness for the Government. But each of the grand jurors above mentioned was positive that this was not what Bliss said. It further appears from the evidence of Merrick and Ker that at the time this Grand Jury was in session the Government had no knowledge whatever that Price would ever be a witneSff in its behalf. He • was then under indictment for conspiracy, and no pronosition had been received to' accept him as a witness at that time." The report goes onto show how, when'Kellogg was brought to trial, the Government’s case against him failed because the court held that the offense consisted in the receipts of drafts and was barred by the statute of limitations. “It is due to Kellogg to state that he appeared before the committee at his own instance, July 1, and made a fnil explanation under oath of his transactions with Walsh and Price. Kellogg’s statement before the committee having been made, on July 1, and the session having adjourned on the 7th, the committee was unable to further investigate the matter." The remainder of the report is taken up with the question of civil suits, the removal of local officers in the District of Columbia and the retirement of Attorney General MacVeagh. In conclusion the report says: “Your committee is of the opinion that there were many causes which operated to prevent the successful prosecution of the Star Route offenders. Whatever these causes may have been it is doubtless true that those who will take the pains to read carefully the testimony taken by your committee on this subject, comprising nearly 1,000 pages of printed matter, will reach different conclusions. There was a great diversity in the testimony, and many contradictions win be found, wholly irreconcilable upon any other theory than that of willful perjury. It is sufficient, however, for the purpose of this investigation to state that while the evidence against the Star Route contractors and public officials was strong and conclusive as to their guilt, and that the Government was defrauded of large sums of money, and that large sums were also expended to secure indictments and convictions, yet no person was convicted or punished, and no civil suits have as yet been instituted to recover the vast sums illegally and fraudulently obtained from the public treasury.”