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In that case you had these repeated reiterations of orders by Mr. Brady in faror of these same parties, and that was the strength of the case. He might have been imposed upon in the first instance, or perhaps in the second, but when you found these orders coming along one after another and found these increases and everything of that sort being made regularly and continuously in favor of the same parties, I considered that we had a case which would carry conviction to every fair mind. I have got here a tabular statement which we used ; and I may as well show you at this point how those routes and the orders upon them ran along. Bear in mind that Peck, Miner, and John W. Dorsey were the three original bidders, and that they were admittedly in combi. Dation. Stephen W. Dorsey was in the Senate and could not become a contractor for a year, or for about eight months after the contracts were let, but we bad evidence of his having been interested from the outset, evidence that the bids were made up in his house, and evidence of his connection with the matter in various ways. These three others, Peck, Miner, and John W. Dorsey, were the bidders. After Stephen W. Dorsey went out of the Senate he promptly became directly interested in a considerable portion of the routes. That was admitted. Peck was Dorsey's brother-in-law. Miner we had reason to believe had been his business associate in Ohio, but I think that was probably an error. Now, let me take up these routes and show you how they run along. The route from Kearney to Kent was let as 125 miles long and they were to perform the service, one trip per week, in 60 hours; that is about 2.08 miles per hour. The contract price was $868 a year. Within three months after the contract took effect there was a small increase made of about $112. Then, in less than a year after the contract took effect there was an increase of $3,322, and that was made upon an affi. davit which we thought was abundantly proved to have been false.
By the CHAIRMAN : R. Was that last increase made after Senator Dorsey became interested !-A. This was on the route from Kearney to Kent. Stephen W. Dorsey did not become interested in all the routes of the combination. The combination had 134 routes. We put 19 of them into the indictment. Stephen W. Dorsey became interested in only certain of the routes. Certain others passed to Henry M. Vaile. The parties interested in all the routes were Peck, John W. Dorsey, Viner, and Vaile,
aile being an old mail contractor and the only real mail contractor in the party, the others being speculators in mail contracts. The next route from Vermillion to Sioux Falls was let at $398, and in less than a year there was something over $5,000 added to it; so that a route which at a public letting was let for $398, one trip a week, was run up to five trips a week, and from 3,4 miles an hour was carried up to five miles an hour, and for this difference of 14 miles an hour the pay was Increased to $3,680. The pay on this ronte was run up from $398 to over $6,000. On the route from Bisinarck to Tongue River the original contract price was $2,350, and the pay on that route was run up within a year to $70,000. There was some justification for a reasonable in. crease on that route as Dakota was developing very rapidly and there was considerable increase of business. Then take the route from White River to Rawlips. That was originally let at $1,700, and within a year it was run up to $13,000 or $14,000, within two years, to nearly $32,000. The contract on the route from Pueblo to Rosita was let originally for 8388: within a year it was run up to $7,700, the distance being only 49 miles. The route from Saint Charles to Greenhorn, 35 miles, was let
H. Mis. 38, pt. 2_-15*
originally for $548, and was run up within about a year to nearly $4,000. The route from Trinidad to Madison, 45 miles long, was originally let for $338, and within a year was run up to over $4,000. The route from Garland to Parrott City, 288 miles, was let originally for $2,745, and within a year it was run up to $13,000, and within two years to over $31,000. The route from Saguache to Lake City was let originally for $3,426; within a few months it was run up to $15,000. That was the route in which San. derson was interested, and in which he took all the money. The route from Ouray to Los Pinos was let originally for $348, and there was never any increase. The route from Silverton to Parrott City was let for $1,488, and within a year it was increased to $15,000. The route from Mineral Park to Pioche was let for $2,982, and within six months it was run up to over $20,000, and in about a year to over $49,000; then it was put down and then it was put up again. The route from Tres Alamos to Clifton was let for $1,568, and within a year was run up to $13,000, and within eighteen months it was run up to $27,000. The route from Toquerville to Adairville was let for $1,168, and within a year it was run up to about $20,000. The route from Eugene City to Bridge Creek was let for $2,468, and it was run up within a year to orer $18,000. The route from The Dalles to Baker City was let at $8,288, and within a year it was run up to over $60,000. The route from Canyon City to Camp McDermott was let for $2,888; in six months it was run up to $16,000, and within a year and a half to over $50,000. The route from Julian to Colton was let for $1,188 and was run up within a year to $8,000. The route from Redding to Alturas, California, was let for $5,988; within six months it was run up to $30,000 and within two years to about $40,000,
These were 19 of the routes belonging to the combination, but there were 134 routes as to which similar things were done.
By the CHAIRMAN: Q. Were those the routes upon which the indictments were based in the Dorsey-Brady case ?--A. Yes. These increases were made upon affidavits as to the number of men and horses which were being used on the routes and which would be required for the increased and expedited service; which affidavits were shown by abundant evidence to have been utterly false either in ove respect or inboth. Then, too, there were bogus petitions gotten up, and everything of that sort. There were all sorts of little frauds in connection with the business. They were routes as to every one of which, except the route from Bismarck to Tongue River, the parties had made sub-contracts, and the work was being done by men who were being paid very much less than the Gov. ernment was paying the contractors, and in several of the cases the routes were being run and the mails carried, before these large amounts were allowed for increase of speed, by the carriers themselves, for their own courenience, at a rate as quick or even quicker than that at which the Government was undertaking to have them carried under this costly expedition. There was one case, at least, in which the sub-contractor who carried the mail carried it on the expedited time and never knew that there had been any order of expedition, but was doing the work for his original pay, although there was a provision in his contract that he was to get 40 per cent of any increase that might be allowed, and after he came here, at the time of the trial, be began a suit to recover the money.
Now, let me show you the revenue derived from these important routes. On the route from Kearney to Kent, where the original pay
was only $868, the entire amount of revenue from all the post-offices on that route was $2,348.22. Kearney was a railroad station and got a large portion of its mail revenues from other sources than this route. The other offices on the route earned in a year only $227; yet the contract price was carried up from $868 to $4,302. The original price on the route from Vermillion to Sioux Falls was carried up from $398 to $6,133. The entire receipts of offices dependent upon the route were $261.51, and after the expedition of the service the receipts fell off $20! The price on the route from Bismarck to Tongue River (where there was, however, a rapid development going on) was run up from $2,350 to $70,000. Excluding the Bismarck office, which was also on other mail routes, the entire receipts of the offices on this route, and dependent upon it, were $710.75. On the route from White River to Rawlins the pay was run up from $1,700 to $31,981. The entire annount of the receipts of all the offices on the route, including Rawlins (which was an important station on the Union Pacific road, and, therefore, not dependent upon this route) was $1,245.43, and all the offices on the route other than Rawlins produced only $79. The pay on the route from Pueblo to Rosita was run up from $388 to $8,148. Pueblo is a large town on the railroad, fed by six other routes, and the entire emoluments of the offices on this route were only $6,621, leaving only $2,179, excluding Pueblo. The pay on the route from Saint Charles to Greenborn was run up from $548 to $3,945.60. The emoluments of all the offices on the route amounted to a little over $5,500, and the emoluments of the offices dependent on the route amounted to $60. On the Mineral Park and Pioche route the original pay was $2,982, which was run up to 322.300, and afterwards to about $50,000. The emoluments of all the offices on the route were but $761, which after the expedition ran down to $597. It afterwards recovered to $1153, but never got so high as it was originally. There was a regulation requiring each postmaster to state in his return how many bags of mail left his office on any given day, so that the contractor should not have a chance to cheat by taking just a day longer than the time allowed, say by carrying the mail in 48 hours instead of in 24 hours. In order to obviate that, the Department required that there should be a record to show the date of the mails leaving the offices. The postmasters on this route, in their innocence, did not suppose there could be anybody in Washington who thought that there were really bags of mail matter passing over the route; so, instead of making a return of bags, they went to work and counted the letters and papers, and they made reports showing the entire number that had passed during 70 or 80 days, and it appeared that for 39 days there did not pass a letter or a paper over that route on which the Government was paying $40,000 or $50,000 for carrying the mail.
The CHAIRMAN. For carrying the bags, you mean.
Mr. WOODWARD. I think there were two or three letters in that period, but during 20 days there were none.
Mr. BLISS. I will put into the record at this point these two tabular statements, one showing the contracts and their moditications on these pineteen routes, and the other the revenues from the post offices on those routes: