IC-NRLF HE r A ii- n< >r f n ; CON si M n TNITK!) STATICS H(/dJn#t THOMAS ,), l;K.M)V AND OTHKIJS. OPKXINC ADDHKSS Q i: IM, i ss. \\'ASIII\(; TON. I). ('., DiicjiMni:!; II. !">. is. AND li ? issi>. GIFT OF ST\AJR ROUTE UNITED STATES against THOMAS J. BEADY AND OTHERS. OPENING ADDEESS OF GEORGE BLISS. WASHINGTON, D. C., DECEMBER 14, 15, 18, AND 19, 1882. las \1 OPENING ADDRESS OF GEORGE BLISS. MAY IT PLEASE THE COURT, AND YOU, GENTLEMEN OF THE JURY : It has been assigned to me to state to you the grounds upon which the Government will ask that you pass your judgment upon the action of the defendants in this case, and to call your attention in some detail to the evidence which we shall present to you to sustain the charge which we make against them. That charge, gentlemen, is. what is .known as conspiracy, and it is founded upon a statute of the United States which is substantially this : There was an amendment of the statute in 1879. A portion of this charge relates to a period prior to 1879, and a portion to a period after 1879 ; so far as the operative portion of the statute is concerned it remains unchanged. It was the same in both periods. The statute is this : If two or more persons conspire either to commit any offense against the United States, or to dffrand the United States in any manner, or for any purpose, and one or more of such parties do any act to effect the object of the conspiracy, all of the parties to such conspiracy shall be liable to a penalty specified. That is the amendment to section 5440 of the Revised Statutes of the United States, passed on the 17th of May, 1879. It provides, you will see, gentlemen, that if any two or more persons conspire to defraud the United States in any manner whatever or for any purpose whatever, and if any one of them does any acf, all of them are guilty under the statute. We expect to show you that these par- ties did conspire to defraud the United States out of large sums of money in connection with the postal service of the United States, and that one or more of them did various acts in pursuance of the conspiracy, arid that they are all guilty under the statute. And we shall with consider- able confidence ask a verdict of guilty at your hands after the evidence on both sides shall have been closed. These defendants, gentlemen, are persons who have some of them heretofore occupied prominence in the community. One of them is an ex-United States Senator from the State of Arkansas. Another one of them was the Second Assistant Postmaster General, who, by virtue of his office, had charge of the whole business of making the contracts for the mail service and regulating the rate of pay which could be allowed for carrying the mails. Another one of them is the brother of the ex-United States Senator of whom I have spoken. Another is the brother, in law. The brother-in-law is not before you practically, because he is dead, though I think there is no formal evidence upon that point. Another one is the friend and, to some extent, the business associate of the ex-United States Senator. The last one was his clerk and confidential employe. That is the relation which those gentlemen bear to this case ; and I may say here at the outset that the theory of the Government is that the conspiracy to defraud the United States, the method of defrauding the United States, and the original idea had its birth in the mind of the ex- Senator, Stephen W. Dorsey, and that the first steps towards itsexecu- 370840 4 tion were taken fry him; that it was impossible to carry out the con- spiracy unless he got orders for the payment of money from the Treas- ury of the United States, which orders had to be for an extravagant and improper amount in order to make the conspiracy profitable, and that he obtained those orders from the Second Assistant Postmaster- General, and by corrupt means. The other parties were the pawns in the game. It was necessary to have bidders to get the contracts in form. .As Stephen W. Dorsey was then a Senator, he was forbidden by the statute of the United States to take a contract in his own name. It was necessary, therefore, to bring here to Washington the brother, who was a humble mechanic in Vermont; and the friend, who was en- gaged in some business in Ohio. It was necessary to use the name of the brother-in-law, who was lying sick with a disease which brought him to his grave, who was utterly unfit to attend to business, and who rarely, if ever, attended to anything in this matter except to sign his name to papers, many of them in blank, and all of them papers in the preparation of which we believe he took no active part. The conspir- acy, therefore, included the Senator, his representatives and dum-. mies, and it included the Second Assistant Postmaster-General, whose co-operation was necessary to enable the conspiracy to become success- ful financially. I said that the Senator was forbidden to take any con- tracts in his own name. The statute upon that subject is, I think, sec- tion 3739, and is as follows : Xo member of, or Delegate in Congress, shall directly or indirectly, himself or by any other person in trust for him, or for his use or benefit, or on his account, under- take, execute, hold, or enjoy, in whole or in part, any contract or agreement made or entered into in behalf of the United States by any officer or person authorized to make contracts 011 behalf of the United States. The belief of the Government is that we shall satisfy you that the Senator in form obeyed this statute, and that lie took no contracts in his own name, but took them in the names of his brother, his friend, and his brother-in-law. We shall show you that lie was interested in the contracts all the time. The contracts commenced on the 1st of July, 1878. On the 4th of March, 1879, he ceased to be a Senator and became ex-Senator, and within a brief ten or fifteen days after that time he became avowedly and admittedly interested in these contracts, which we say were obtained for his benefit long prior to that time and in vio- lation of the statute. We say that the conspiracy started at the very outset with a direct violation of another statute than the conspiracy statute I have read to you, to wit, the statute which forbade a Senator of the United States to have any interest in any contract, or to have any person hold an interest in his behalf or for him. This Senator, as we say, having conceived a scheme, and having brought his friends into it, went on and aided it in every way in his power, concealing his interest. He vised his position as United States Senator to write letters on official paper recommending the things necessary for the perfection of the con- spiracy and its successful carrying out. He did all that until he ceased to be Senator, and then he became more openly participant in it. Gentlemen of the jury, this indictment is confined to some nineteen contracts upon nineteen separate mail routes which were awarded at what is known as the letting of February, 1878, to take effect on the 1st of July, 1878, and to be for four years. Those contracts were let after public advertisement, and were subject to competition with other bidders. They aggregated in amount $41,135 a year. The contractors were to perform the mail service called for under those contracts for that sum. Under the fostering orders of the Second Assistant Postmaster-General, Thomas J. Brady, the contracts within about two years after they were obtained were so transformed that they required that there should be paid by the Government of the United States for the performance of the service under them $-448,670.90. Contracts starting at $41,135 were ill two years run up to $448,670. You will bear in mind that these were an- nual sums, and the contracts had an average of about three years to run at these increased rates. So the result of the whole thing was, bringing it down to very close figures, that the orders Mr. Brady made in behalf of these gentlemen on these nineteen routes alone were to cost the Govern- ment during the period the contracts ran between nine hundred thousand and a million dollars in excess of the original sum. That shows you, in this case, gentlemen, confining ourselves, for the moment, simply to the routes named in this indictment, that there was paid from the Treasury, under the improvident and corrupt orders of Mr. Brady unnecessarily and improperly made, close on to a million of dollars. When I say that I speak only of the nineteen contracts in this indictment. This combina- tion had a hundred and thirty four contracts in all, and upon them there were other large sums of money taken from the Treasury of the United States. The order of Mr. Brady that a contract should be increased was an absolute open sesame to the Treasury of the United States, and took from the Treasury the money that he said should be taken from it without the pow r er in any officer of the Government to say nay. If there was Mr. Brady's order that it should be paid out, that order was sufficient and it was paid. I have said these gentlemen were concerned in a hundred and thirty- four routes. There were other allowances made about the same time. There was a carnival of corruption in the Second Assistant Postmaster- General's office, as the result of which the Government are prepared to show you that the United States was defrauded of close on to $5,000,000. Gentlemen, that is a general outline of this case, and will give you some idea of its importance and the reason why those of us who are, concerned in it, whose duty it is to present to you the Government's views and the Government's evidence, feel at once the weight of the reponsibility under which we are laboring, and feel also the importance of your giving to this case your most careful attention. And you should bring to the decision of the case not only your careful attention, but your honest, unbiased judgment. The provisions of law applicable to this subject I will call to your attention. By section 388 of the Kevised Statutes of the United States, which relates to the organization of the Post-Office Department, it is pro- vided that There shall be at the seat of Government an Executive Department to be kno\yn as the Post-Office Department, and a Postmaster-General, who shall be the head thereof, and who shall be appointed by the President, by and with the advice and consent of. the Senate. By the next section it is provided that There shall be in the Post-Office Department three assistant postmasters-general, who shall be appointed by the President, by and with the advice and consent of the Senate, and who may be removed in the same manner. Then there is the general provision of the Eevised Statutes, section 161, which relates to all the executive departments of the Government : The head of each department is authorized to prescribe regulations, not inconsistent with law, for the" government of his department, the conduct of its officers and clerks, the distribution and performance of its business, and the custody, use, and preserva- tion of the records, papers, and property appertaining to it. 6 Under that authority to the Postmaster-General there have been, from time to time, various regulations made and various assignments and distributions of duty, the language of the statute being The distribution and performance of its business. Among other things there were assigned to the Second Assistant Postmaster -General the duties which 1 will read to you that you may see the breadth and scope of them. The copy of the regulations from which I read is the edition of July, 1879, but they were substantially the same regulations which prevailed before that time. These contracts were bid for in the fall of 1877, and were awarded in the winter of 1878, and commenced the 1st of July, 1878. Of course the regulations prior to 1879, as well as those of 1879, may come into play, but I think it will be found that in no point where they differ do they affect this case. Thomas J. Brady became Second Assistant Postmaster General on the 23d of July. 1870, and lie continued as such down to about the 1st of April, 188lJ not long after the incoming of General Garfield's adminis- tration. The regulations of the Postmaster-General as to the distribution of duties to the Second Assistant Postmaster-General contain the follow- ing : THE OFFICE OF THE SECOND ASSISTANT POSTMASTER-GENERAL. To this office is assigned the business of arranging the mail service of the United States, and placing the same under contract, embracing all correspondence and pro- ceedings respecting the frequency of trips, mode of conveyance, and times of depart- ures and arrivals on all the routes, the course; of the mails between the different sec- tions of the country, the points of mail distribution, and the regulations for the gov- ernment of the domestic mail service of the United States. It prepares the advertise- ments for mail proposals, receives the bids, and has charge of the annual and miscel- laneous mail-lettiugs, and the adjustment and execution of all the contracts. All appli- cations for mail service or change of mail arrangements and for mail messengers should be sent to this office. All claims .should be submitted to it for transportation s'ervice. From this office all postmasters at the end of the routes receive the state- ment' of mail arrangements prescribed for the respective routes. It reports weekly to the auditor all contracts executed and all orders affect ing the accounts for mail trans- portation; prepares the Statistical exhibits of the mail service, and the reports to Congress of the mail-lettings, giving a statement of each bid; also of the contracts made, the new service originated, the curtailments ordered, and the additional allow- ances granted during the year. The rates of pay for the transportation of the mails on railroad routes, accordiugto the amount and character of the service', are adjusted by this office. It also directs the weighing of the mails on the same, and authori/es new service on railroad routes. The issuing of mail- locks and keys, mail-pouches and sacks, and the supervision of the construction of mail-bag catchers is also in charge of this office. To it is attached the division of inspection, to which is assigned the duty of receiving and inspecting the monthly registers of arrivals and departures, re- porting the performance of mail service; also special reports of failures or delinquen- cies on the part of mail contractors or their agents, and of noting such failures and delinquencies, and preparing cases of lines or deduct ions by reason thereof; of con- ducting the correspondence growing out of reports of failures or delinquencies in the transportation of the mails: of reporting to the Auditor of the Treasury for tin; Post- Office Department, at the closeof each quarter, by certificate of inspection, the fact of performance or non -performance of contract or recognized mail service, noting therein such lines or deductions as may have been ordered; of authorizing the payment of all employ6s of the railway mail service ; also the payment of such acting employes as may be employed by this office through t;he superintendent of railway mail service in cases of emergency, and of authorizing the auditor to credit postmasters with sums paid by them for such temporary service ; and such other duties as may be necessary to secure a faithful performance of the mail service. All complaiutsagainst mail con- tractors or their agents, relating to failures or other irregularities in the transporta- tion of the mails, whether made by postmasters or others, should be promptly for- warded to the Second Assistant Postmaster-General marked " Division of Inspection." You will therefore see, gentlemen, that to the Second Assistant Post- master-General is assigned the whole power over the transportation of the mails, the making of the contracts for them, the decision of the question whether the contractors perform their service properly or not, and the imposition of fines upon them if they have not performed them properly. You will also see as I go along, that by general language the Second Assistant Postmaster-General is given the right to make extra allowances in various forms, which extra allowances are practically the source of the fraud upon the Government of which we complain in this case. Now, gentlemen, bearing in mind these provisions that I have read to you, the condition of things under the statute, as we regard it, is this : It is the duty of the Postmaster- General to provide for the carry- ing of the mail. That duty is imposed in general terms upon the Post- master-General, and then, under the special power given by the statute which I have read to you, it is assigned by him to the Second Assistant Postmaster-General, and his power is plenary. The statute provides, however, some limitations and considerations which must prevail in connection with the question of carrying the mail, and amongst others is this. I read from section 3965 of the Revised Statutes: The Postmaster-General shall provide for carrying the mail on all post-routes es- tablished by law, as often as he, having due regard to productiveness, and other cir- cumstances, may think proper. The discretionary power given to the Postmaster- General was trans- ferred to the Second Assistant Postmaster-General, but he is required to have u regard to productiveness and other circumstances." Pro- ductiveness is the only circumstance specified in the statute. The Second Assistant Postmaster- General having, we will suppose, decided that the mails are to be carried on a certain route and at a certain rate of speed, and a certain number of times a week, what is his duty and what is the scheme of the law as to how that plan shall be carried out? It is in general terms this: That the opportunity for carrying the mail shall be thrown open to the whole world ; that there shall be public advertisements inviting everybody to bid, and that when they do bid the contracts shall be awarded to the lowest bidder. The whole scheme and scope of the law is that as to all post-office contracts the service shall be thrown open to public competition, and contracts shall be awarded to the lowest bidder. There are also in the laws cer- tain provisions, which I shall read directly, which are intended to pro- vide for unforeseen contingencies which cannot be covered by the or- dinary advertisements. It was by a perversion of these that Mr. Brady and Mr. Dorsey and his associates succeeded in defrauding the United States. Section 3941 of the Revised Statutes, as it then stood, pro- vided : The Postmaster-General shall cause advertisements of all general mail lettings of each State and Territory to be conspicuously posted in each post-office in the State or Territory embraced in said advertisement for at least sixty days before the time of such general letting, and ;io other advertisement of such letting shall be required ; but this provision shall not apply to any other than geueral mail Jottings. Then, to meet the contingency, there comes section 3957, which pro- vides : Whenever, by reason of any error, omission, or other cause, any route which should properly be advertised for the regular letting is omitted, it shall be the duty of the Postmaster-General to advertise the same as soon as the error or omission shall be discovered, and the proposals for such route shall be opened as soon as possible after the other proposals in the same contract section ; and the contract made under such supplementary advertisement shall run, as nearly as possible, from the beginning to the end of the regular contract term, and during the time necessarily lost by reason of such error, omission, or other cause, the Postmaster-General shall provide for the carrying of the mail on such route at as low rate as possible without advertising. 8 You will see that this section, keeping up the spirit of the statute, provided that where anything has been accidentally omitted from the advertisement there shall be a supplemental advertisement throwing it open to public bidding, and that the Postmaster-General is author- ized to provide for the carrying of the mail on that omitted route only during the period when the new advertisement is running. Referring to a phrase which appears in that statute, it is proper for me to say to you. gentlemen, that under the practice of the Post-Office Department the whole country is divided into contract sections, and that what is known as the Pacific section, which covers substantially all the terri- tory west of the Mississippi River, is the section within which the routes were contained in connection with which the frauds alleged against these defendants were perpetrated. In these contract sections it is the practice for the convenience of the department to let the contracts at different times. All contracts run for four years, but they let the con- tracts last year for the Pacific section, perhaps next year for the New England section, and so on. The contracts in the Pacific section, to which these frauds relate, were let to take effect on the 1st of July, 1878, and those contracts expired on the 30th of June, 1882, when new contracts were made for the Pacific section. By section 3958 it is pro- vided : Whenever it becomes necessary to change the terms of an existing contract for car- rying the mail otherwise than as provided in two other sections to which I will call your attention directly notice thereof shall be given and proceedings had thereon the same as at the letting of the original contract. Then by section 3944 of the Revised Statutes it is provided : Proposals for carrying the mail shall be delivered, sealed, and so kept until the bidding is closed, and shall then be opened and marked in the presence of the Post- master-General and one of the assistant postmasters-general or two of the assistant postmasters-general, or of any other two officers of the department, to be designated by the Postmaster-General. By section 3948 of the Revised Statutes it is provided that The Postmaster-General shall have recorded in a book to be kept for that purpose a true and faithful abstract of all proposals made to him for carrying the mail, giving the name of the party .offering, the terms of the offer, the sum to be paid, and the time the contract is to continue; and he .shall put on tile and preserve, the originals of all such proposals. Then section 3950 provides that- No contract for carrying the mail shall be made with any person who has entered, or proposes to enter, into any combination to prevent the making of any bid for car- rying the mail, or who has made any agreement, or given or performed', or promised to give or perform, any consideration whatever to induce any other person not to bid for any such contract; and if any person so offending is a contractor for carrying the mail his contract may be annulled. You will see running through all the same provision for public ad- vertisement, free, open bidding, and the imposition of penalties for any- thing which prevents free and public bidding. Then comes section 3951 of the Revised Statutes. This section makes provision for a case where, after the award of the contract, the con tractor .does not take the service up. It provides for temporary service and new* advertisement : Whenever an accepted bidder shay fail to enter into contract, or a contractor on a mail route shall fail or refuse to perform the service on said route according to his contract, or when a new route shall be established, or new service required, or when from any other cause there shall not be a contractor legally bound or required to per- form such service, the Postmaster-General may make a temporary contract for carry- ing the mail on such route, without advertising, for such period as may be necessary, not exceeding six mouths. Therefore, if new service is required because of the refusal of the con- tractor after he has been awarded the contract to enter into it, or if he fails to perform the contract after he has entered into it, there is the right of the Postmaster- Gen era! to see that the mails are carried by temporary contract, which, however, can continue only six months. It is worth while perhaps, gentlemen, to show you how thoroughly the idea of public advertisement and open public bidding runs through all the postal laws, and to call your attention to the fact that when you come to a class of service where from the nature of the case there can- not be competition, such service is exceptedby special statute, leaving the remainder as it was before, and thus emphasizing the scheme. We all know that in railroad service there is ordinarily no opportunity for competition, because there is ordinarily only one railroad between given points. Therefore it is that special powers are given to the Postmaster ^ General by sections 3942, 3956, and 3970, with reference to the railway mail service and steamboat service : The Postmaster-Genera] may enter into contracts for carrying the mail with rail- road companies without advertising for bids therefor. When from any cause it may become necessary to make a new contract for carry- ing the mails upon any water-route between ports of the United States upon which mail service has been previously performed, the Postmaster-General may contract with the owner or master of any steamer for carrying the said mail upon said route without advertising. Those are the provisions which, in connection with another provision as to steamboat routes, are, I think, the only provisions which give the Postmaster-General power to make contracts for carrying the mail with- out advertising and open public competition. You will excuse me if I emphasize the fact that you may plainly see the scheme to be one of ad- vertisement, an opportunity for free and open public bidding, and a pro- vision for the different contingencies in case of a contractor failing to enter into contract, or to carry it out, for temporary service extending simply over six months, and in this way making provision that the mail shall be carried, come what may. Now, these provisions, your own judg- ment will tell you, mean precisely what the Supreme Court has said in the case of Garfielde against The United States, in 3 Otto : The object of the statute was to secure notice of the intended post routes, of the service required, and the manner of its performance, that bidders might compete, that favoritism should be prevented, and that efficiency and economy in the service should be obtained. We think you will be satisfied before we get through how wise the statute was, because we shall show you overwhelmingly that when fa- voritism is allowed to come in efficiency and economy cease to exist in the service. This being the scope of the law. gentlemen, what were the duties of the Second Assistant Postmaster-General with reference to the arrange- ment to carry the mail "? Very obviously, first, to ascertain the proba- ble necessities of the service during the four years for which he was about to advertise. He had abundant means of ascertaining chose ne- cessities. He knew, in the first place, what the existing service was which was about to expire. He had postmasters at every town, each one of whom would certainly not err in understanding the amount of service required. Each man in his locality would certainly see that the claim of the locality to the requisite amount of service was brought to the notice of the Second Assistant Postmaster-General. Beside that the Second Assistant Post master- General is provided with a corps, known as post-office inspectors, whose business it is to go to the regions 10 in question and see precisely what the condition of the locality is, what service is required, how it is performed, and everything of that sort. They are his eyes. I want here to say that in view of the practice, which seems to prevail in these days, of assuming- that every branch of the public service is incompetent and corrupt, that I do not believe there is any private corporation or any private citizen who lias so effi- cient a corps of men under him as the corps of post office inspectors in the Post-Office Department of the United States, taking them as they have been certainly within the last two years. The Second Assistant Postmaster-General has these means of finding out how much service should be advertised for. Having ascertained that, it is his obvious duty, as an honest public officer, to advertise for all the service required, so as to submit it to public bidding. If he could advertise for only a portion of the service and then, under some of those laws which I have read to you, or under others to which I will directly call your attention, could, by private proceeding behind the door, arrange for contracts with other parties without competition, of course he could nullify the practical objects of the law. He must, therefore, advertise for all the service required. He must advertise for the number of trips per week which, according to the best information he can get, is likely to be required. He must advertise for the rate of speed which, according to the best information he can get, is proper for the locality. We all understand that in certain unfrequented regions and in certain mountainous countries it is very absurd to ask that the mail shall be carried without the aid of railroads, six, eight, or nine miles an hour. In certain regions it may be proper not to carry the mail at a higher rate of speed than three miles an hour. Perhaps I ought to say here in passing, that when it comes to speaking of service at a certain number of miles an hour, you must bear in mind that under the rules of the Post-Office Department when a .man is required to transport the mail at the rate of four miles an hour that includes all stop- pages, and that every postmaster at whose office he stops to leave and obtain mail is authorized to detain him not to exceed seven minutes; so that if there is a single post-office the hour would be reduced by seven minutes, and so on. Xo\v, if the Second Assistant Postmaster-General believes that four miles an hour is a proper rate of speed he has no right to advertise for three miles and then expect under some provis- ion of the law to increase it. He is bound also under the law which I read to you in fixing the proper amount of service to have regard to "productiveness and other circumstances," productiveness being the only circumstance specified. He must make up his mind upon that subject, and then, having made up his mind and having advertised and having received bids, he must award the contract to the lowest bidder. It is provided in section 3949 of the Kevised Statutes : All contracts for carrying mailsshnllbe in the name of the United States, and shall be awarded to the lowest bidder tendering sufficient guarantees for faithful perform- ance without other reference to the mode of transportation than may be necessary to provide for the due celerity, certainty, and securiry thereof. Gentlemen, in those three words, celerity, certainty, and security, we find the origin of the phrase " star route." Prior to 1845, I think, the Postmaster-General, in awarding contracts, was authorized to take into consideration other matters $ among other things, if I remember right, the conveniences that the contractor had for transporting passengers. This led to great abuses, and in that year there was passed a statute in which the words celerity, certainty, and security appear. And when contracts were awarded under that law and came to be carried on to the Post-Office 11 records, instead of putting in those three words, celerity, certainty, and security, they carried them on the books under three stars, hence came the phrase about which you will hear so much in this trial. 1 fear some of you may think you will hear too much about it. Mr. HENKLE. Your honor, this is the hour for-recess. The COURT. This seems to be a convenient time and we will take a re- cess for half an hour. Accordingly at this point (1 o'clock and 8 minutes p. m.) the court took its usual recess. AFTER REOESS. Mr. Bliss resumed his address as follows: But, gentlemen of the jury, notwithstanding all these provisions for advertising and for supplementary advertising and for temporary con- tracts the law looks to the possibility that there may still be some accident unprovided for by which the mails may fail to be carried, and it considers it necessary, therefore, to make further provision. It may be that the circumstances under which a contract is awarded the cir- cumstances in the country through which the route runs may have changed, rendering it advisable to increase the number of trips per week, or to decrease the trips, or to increase the rate of speed, or de- crease the rate of speed. The condition of the country may change by a railroad penetrating the country which takes up the ordinary railway mail service, and necessarily dispenses with the star-route service which previously supplied the locality ; or it may be that' some mining region has been proved to be productive, and a population has rushed in there with the rapidity with which we know it has done in many of the Western States, and it may be necessary there to make additional mail service ; or a mine may ' play out," and it may be proper to reduce the service. There may be a dozen contingencies which may arise and which ex- perience shows do arise which may render it desirable in the eye of the law-maker, and wisely render it desirable, to make other provisions so that by no possibility should the real needs of any locality in mail service fail to be supplied. It may be also that after advertising, as I have al- ready called to your attention, a contractor fails to perform the service, or fails to enter into a contract, and there is a right given to make a. temporary contract; but there is another provision of law to meet that case, and that is section 3951 of the Revised Statutes, which provides that- Iii all cases of regular contracts hereafter made the contract may, in the discre- tion of the Postmaster-General, be continued in force beyond its express terms lor a' period not exceeding six months, until a new contract with the same or other contractors shall be made by the Postmaster-General. In other words, the Postmaster-General, under a contract about to expire on the 30th of June, 1878, could, under that provision of law, as of right, require it to be extended for six months at the same rate of pay, to give him time to make any arrangements for carrying the mail over the same route after the six months expired, if for any reason, by failure of advertising, or failure of the contractor to enter upon the service, or anything .else, the service is not performed under the ad- vertisement. Then we come, gentlemen, to other provisions, which are those which come chiefly in question in this case. There are two provisions taking their origin from one provision o f law, originally passed, I think, in 1825, 12 and subsequently separated and put into two, to which pro visions I now desire to call your attention. One of the provisions looks to providing for an increase of the number of trips per week. If a contract has been made, say, for three trips per week, one of the provisions looks to an in- crease of those trips possibly to seven trips a week, or to such number as may be decided by the Second Assistant Postmaster-General. The other provision looks to tne idea of increasing speed. Where a contract has been let at an average rate, say, of three miles an hour, it provides for increasing the s\>eed to, say, four miles an hour, and for the adjustment of the compensation. One of the increases is usually spoken of as an increase of trips or of service, while on the other hand the provision looking to' an increase of speed has come to be spoken of familiarly and you will constantly hear it in this case spoken of in that way as expedition ; increase of speed or expedition simply relates to the same number of trips as are provided for in the contract, but the making of them in less time than is provided for in the contract, while on the other hand the question of the increase of trips does not relate to speed, but only to the number of trips per week. You not infrequently "will find in the orders of the assistant postmaster gen- eral, to which I shall call your attention, that there is first an increase of speed and then an increase of expedition. Section 3M5() of the Re- vise d Statutes provides and let me say before I read this that you will notice as to both these provisions of law that they do not them- selves confer any power whatever. They simply limit a power which is recognized as existing, and jet it is a power which so far as I have been able to find has never been expressly conferred by statute, but has been by various statutes recognized as existing, and therefore is an undoubted power. Yet the statutory pro visions on the subject, it should be noted, are not provisions conferring the power. They are provisions recognizing it as an existing power and limiting its exercise. Section 31)00 provides that Extra compensation for additional service in carrying the mail shall not be in excess of the exact proportion which 1 he original compensation bears to the original service ; and when any such additional service, is ordered, the sum to be, allowed ther. -for shall be expressed in the order, and entered upon the books of the department; and no compensation shall be, paid lor any additional regular service, rendered before the issuing of such order. Now, you will perceive, gentlemen, that this provision simply limits the compensation. Compensation for additional service in carrying the mail shall not be in excess of the exact proportion which the original compensation bears to the original service. Under that the practice has grown up, and probably a correct prac- tice, that if there was a payment, for instance, of a thousand dollars a year for one trip a week, and the trips were then increased to two trips a week, this law is recognized as saying that the amount to be allowed when there are two trips shall not exceed two thousand dollars, two trips being twice as much as one trip, and two thousand dollars being twice one thousand dollars. The law provides that that limit, shall not be exceeded. It is not a provision, you will perceive, that they shall allow twice as much for double service, but only that they shall not exceed it. This provision gave rise to a phrase which you will con- stantly hear in the course of this trial, and that is pro rata. When it is said that so much increase is allowed, "being pro rata," it is intended to assert that where the service has been doubled the compensation is doubled, and where it has been trebled the compensation is trebled, and this allowance is pro rata. 13 That section relates, you will see, to an increase of trips. Section 3961 , which I am about to read, relates to increase of speed. It introduces a little more complication into the statement and carries us back, to our school days when in arithmetic the rule of three was the stumbling block to a good many of us : No extra allowance shall be made for any increase of expedition in carrying the mail unless thereby the employment of additional stock and carriers is made neces- sary, and in such case the additional compensation shall bear no greater proportion to the additional stock and carriers necessarily employed than the compensation in the original contract bears to the stock and carriers necessarily employed in its execu- tion. You will see, gentlemen of the jury, in the first place that there is no right to pay a cent of extra compensation unless the increase of speed necessarily involves the employment of additional stock and carriers. If it does involve the employment of additional stock and carriers, then you may not allow any more additional compensation than the compensation in the original contract bears to the stock and carriers necessarily em- ployed in its execution. As to the effect of that I shall have occasion to call your attention to it in a moment. But I now pause to remind you of the fact that these provisions of law complete the scheme of the Post- Office law r s so far as they relate to carrying the mails. First, ascertain what service is likely to be needed during the four years of the contract term. Then advertise for it. Advertise fully ; cover all the service there is reason to believe will be required. Award the contract to the lowest bidder. If an emergency arises, give a temporary contract under the provision allowing it to be done for six months, until an advertisement can be made, so as to open it to the lowest bidder, or meet the emer- gency if it occurs within six months after the commencement of the new contract term by extending the former contract at the same rate for six months ; or when these fail, meet it under these two last exceptional provisions to which I have referred relating to an increase of trips and to an increase of speed. You will see that under these there is a limitation that you shall not allow beyond a certain amount. It is not said who is to do it or any- thing about who is to decide whether there is to be an increase of serv- ice, who is to decide whether there is to be an increase of speed, nor who is to decide how much is to be allowed for compensation, either for increasing the service or increasing the speed. All that is covered by the general provision which I read to you which vests in the Second Assistant Postmaster-General the entire charge of everything con- nected with the transportation of the mails and the amount to be al- lowed therefor. These provisions Avhich I have read to you, called provisions for in- crease of service and increase of speed, we claim were intended to be exceptional provisions only to be resorted to in exceptional cases. I said on the last trial, and I can fairly repeat it here, that they were in- tended to be the medicine of the postal service, and that Brady made them his daily bread. He resorted to them constantly, habitually, un- necessarily, and corruptly. He based his action upon pretended evi- dence, showing the necessity of increased service, which evidence was not only false, but which he knew to be false, and which bore on its face the evidence of its own falsity. He based his action as to the allowances to be made for increased speed upon papers which were not only false, and which he must have known to be false, but which no man with sufficient capacity to read them would ever accept as genuine and proper documents to base action upon. He based his action upon 14 documents which were sworn to in blank. He based his action upon docu- ments full of erasures and changes, all of those erasures and changes being made in the precise spots and in the precise manner where they would take the greatest amount of money from the Treasury if they were accepted as genuine. He went to the extreme limit of the law. Where the law said you shall not allow more than a certain amount for increase of service he habitually, yes, uniformly, almost without excep- tion, went to the ^extreme limit of the law, when it is perfectly obvious that there was no justification even if the service was to be increased, in paying so much for it. Accepting the statements which were made to him as to the number of stock and carriers necessary to make in- creased speed, accepting those, alte red as they were, cheating, as they were obviously intended to be, as true, he went to the extreme limit of the amount that the law allowed to be given for increased speed. Moreover the law expressly says, and I read it to you again: No compensation shall be paid for aiiy additional service rendered before the issu- ing of the order. Yet he made orders which expressly and on their face provided for the allowance of compensation for weeks previous to the ia date of the order. Probably we shall confine our evidence on that subject to 'two or three instances ; it may be to one. The one I have in my mind will show conclusively that there was an order by which compensation was directed to be allowed at a large amount for some six or eight weeks prior to its date, directly in the face of this statute. Though there is for a portion of that service and a portion of that time some reason to claim that a .telegraphic dispatch might be treated as a prior order, yet ac- cepting the dispatch as all that can be claimed, Mr. Brady still, in that case, made the order expressly allowing a large amount of compensa- tion from a period prior to the date of any order that was issued, and in direct and express violation of the statute. We say, gentlemen of the jury, that Mr. Brady made these orders unnecessarily, improvidently, corruptly ; that he directly benefited by them, and that he made them at the instigation of and divided the profits of the transaction with some or all of the other defendants. He so acted, as I said at the outset, and that action was entirely under these two provisions, the provision for increase of service and the pro vision for increase of speed. He so acted under those provisions of law that the original contracts, having been made with these parties by which they were to receive $41,155 a year for performing the service on these nineteen mail routes, they were run up, without advertising and by virtue of the secret arrangement with Brady, so that he allowed to them $448,670 90 a year. He multiplied them considerably more than ten times over, and he did that, as we say, by availing himself of these exceptional provisions of law and in- troducing a practice into the Post-Office Department which had never prevailed there before, to wit, the practice of using these provisions con- stantly, and as I said, as the daily bread of the postal service instead of its occasional food or medicine. We shall show you, gentlemen of the jury, that under John L. Routt, who was Second AssiNtant Postmaster- General from the 1st of January, 1872, to the 30th of June, 1875, being three years and a half, there were in those three years and a half but fifteen cases in which resort to this provision as to increase of speed was had ; that under James N. Tyuer, who was Mr. Brady's immediate predecessor, and who was in office for a year Mr. CHANDLER. [Interposing.] Mr. Bliss Mr. BLISS. [Continuing] there were but five cases of expedition. 15 Mr. CHANDLER. Your honor, I ask that Mr. Bliss may stop. He pays no attention to me. Mr. BLISS. I did not hear the counsel. Mr. CHANDLER. I tried to make myself heard. I understood that on the former trial of this case an offer to compare the administration of the Post-Office Department and its business with former and subse- quent administrations was not permitted by your honor as a rule of determining whether this business was properly or corrupt!}' conducted ; and inasmuch as the gentleman is pursuing that same theory now and undertaking to compare what was done under the administration of General Brady with an administration which preceded him, we say it is not a subject of proof, and it is not a subject of statement before the jury, and we object to it. The COURT. It may or may not be competent. The proper time has not come to make that point. Mr. BLISS. I simply say that it is proper evidence, and we shall claim it to be proper evidence, as showing that Mr. Brady introduced a new practice, and shall ask the jury to infer from that, in connection with other evidence, that it was done improperly. Mr. CHANDLER. If your honor please, it cannot be any evidence of a crime that one administration Mr. BLISS. [Interposing.] The point has been ruled upon, and I ob- ject to further interruption. The COURT. I cannot undertake to pass upon Mr. Chandler's ques- tion now. Mr. CHANDLER. I only raise the point because your honor ruled it out before. ^ Mr. BLISS. He has ruled it in now. The COURT. This ca'se is being tried de novo, and I must decline to restrict counsel. Mr. BLISS. Gentlemen of the jury, I told you that Mr. Koutt in three years and a half had only fifteen cases of expedition, and that Mr. Tyner in a year had only five cases of expedition. Mr. Brady came into office on the 23d day of July, 1876. Prior to the 30th of June, 1877, being less than one year, he had had fourteen cases of expedition, or one less than Mr. Eoutt had in three years and a half. M r. Brady, in the year from June 30, 1878, to June 30, 1879, had seventy cases of expedition ; and in the period from the 23d of July, 1876, to the 30th of April, 1881, being four years and nine months, Mr. Brady resorted to this statute as to expedition in one hundred and twenty distinct and separate cases, while Mr. Eoutt and Mr. Tyner together, in four years and six months just about the same time resorted to it only in twenty cases. We shall ask you, gentlemen, in connection with other evidence upon that subject, to say that Mr. Brady coming into office in the way he did, and finding this exceptional instrumentality, which had previously been resorted to only in exceptional cases, used it improperly and wrongfully. He went to work and availed himself of it to the extreme and great extent that I have mentioned, and we shall ask you to infer from that, in connection with other evidence, that Mr. Brady's course was dictated by improper motives. Gentlemen of the jury, let me call your attention to one single effect that the resort to that practice had upon the Government. When an advertisement is made for a postal contract it is provided that the con- tractor shall enter into a bond. That bond is made to bear a certain fair proportion to the amount paid for service upon that same route during the previous con tract term. If the payment for service upon the 16 route, for instance, be $2,500 a year the bond will be $1,500, or something of that kind. The bond is necessary to the Government for this reason: If a contractor gets a contract at the lowest rate he may be several hun- dred dollars below the next bidder. He enters into service and com- mences it, and then fails to perform it. He is declared a failing con- tractor. The Post-Office Department then has to make an arrangement with some other man, and uniformly is compelled to pay an increased price for the service. They have then to look to the bond of the original con- tractor lor the amount that they have lost thereby ; but they can only resort to that bond for the amount specified in it. We shall show you routes in this indictment where the original contract sum was less than $2,500, I think I am right in saying that, where the bond required was about $1,500, and where, under the orders of Mr. Brady, the amount al- lowed for service was run up within a year to about $50,000, and yet all that the Government had after the increase w.as a paltry bond of $1,500, adequate to the original bid, but not at all adequate to the increased com- pensation. 1 call your attention to that merely as showing that under the provisions of the law, by applying this exceptional power as to expedi- tion, Mr. Brady put the Government in a position to suffer great loss without the possibility of resorting to that protection which the law in- tended the Government should have for the enforcement of the con- tracts for mail service. You will see as to this provision for increase of trips that the statute says the Postmaster-General shall not pay in excess of the exact pro- portion which the original compensation bears to the original cost. If Mr. Brady, or any Second Assistant Postmaster-General, habitually vio- lates the law in this respect, if he does it without due inquiry, if he does it in cases where increase of service is obviously unnecessary, if he allows for it excessive sums, all that is necessarily and positively proof of misconduct of some nature on his part. All you gentlemen, as business men, must know that an increase of trips does not neces- sarily nor ordinarily involve a proportionate increase of the price ; that if a man has undertaken to carry the mail once a week and is called upon to carry it twice a week, it does not cost him twice as much money to do it. Take a short route, for illustration, that is gone over in a day. You have to have your horses and your wagons, and it will not cost you twice as much to go over that route twice a week as it will to go over it once. Suppose it is a route that you are required to run over once a week each way, which will take your horses two days in a week, and all the rest of the time they are standing and " eating their heads off," to use a common expression. If you are called upon to go over that route four times a week instead of twice, you will see plainly that doubling the trips does not double the price. But if the contractor is lucky enough to have some convenient Brady make a secret order about it he can get his pay doubled when his service is doubled. We all understand that on the longer routes there are other expenses the expense of supervision, the expense of rent, of stables, the expense of hostlers, and many other expenses which are not doubled in such a case. All of you, as business men, know that it will not cost you twice as much to keep two horses in your stable as to keep one. There is not any question about that. Yet we shall show you by evi- dence in connection with the very cases in this indictment, that although Mr. Brady and these defendants knew these facts, they habitually and constantly, for their own benefit, acted in viola- tion of that knowledge; and that Mr. Brady allowed sums which he knew to be in excess of the fair cost for the increase of serv- ice. We shall show you that these defendants themselves recognized it, recognized it by documents formally executed, and which they placed upon the Hies of the department. There is a provision of the law to which I shall have occasion to call your attention by and by, known as the subcontract law, under which, when a mail contractor not carry- ing the mail for himself, arranges with somebody in the locality to carry it, and makes a suocontract with him, that subcontract can by the sub- contractor be placed on tile in the department. These subcontracts to which I am going to call your attention were on file in Mr. Brady's office, and showed Mr. Brady that these defendants themselves recog- nized the fact that an increase of trips did not necessarily or ordinarily involve a proportionate increase of expense. For instance, we shall show you one case where the subcontract made by these defendants with a subcontractor in the locality, provided that the subcontractor should be allowed $1,400 a year lor one trip, if there were two trips that he should be allowed $2,000 a year, and if there were three trips that he should he allowed $3,700. If there were six trips he was to be allowed $7,000, and if there were seven trips $7,500. I give you that particular instance, and I can readily refer you to others showing you that they are not exceptional. On another route we find by their subcontract that they allowed $700 for one trip, $1,300 for two trips, $1,800 for three trips, and $3,300 for six trips. On an- other route they allowed for one trip $2,500 ; for two trips, $4,000, and for three trips, $5,100. On another route they allowed for one trip, $1,500; for two trips, $2,850; for three trips, $4,055, and for six trip*, $8,017. On another route they allowed for two trips, $5,500 ; for three, $7,500 ; for six, $ 15,001), and for seven, $17,000. The subcontracts made by these defendants for service upon these routes show that they recog- nized the fact that the increase of service did noc necessarily involve a corresponding increase of expense. Many of those subcontracts were on file in Mr. Brady's office convey ing that same information to him. Wesub- mitthat if he knew what he was bound to know if fit for his place, and what he was bound to know if he had any knowledge of the simplest business matters, that he should have used this knowledge for the benefit of the Government. Moreover, Congress has expressly recognized this principle in making appropriations years ago before we had any Pacific Railroad for transporting the mails overland to California. They put in the law a clause by which they provided $300,000 a year for semi-monthly service, $450,000 a year for weekly service, and $(>00,000 a year for semi- weekly service. It is so obvious, so well known, that that must be the result, that I think we may almost say the court would take judicial notice of the fact. This being the condition of things, Mr. Brady habitually and uniformly, when he was making an order for increase of service, went to the extreme limit allowed by the law. We shall show you on the routes in this indictment, as far as increase of service is concerned, twenty- nine separate orders made under Mr. Brady. In twenty-six of them he deliberately and on their face provided that there should be allowed the extreme amount authorized under the law. When he increased one trip to three he multiplied the compensation by three. When he in- creased two tiips to six he multiplied it by three. For illustration, if the original compensation for one trip was $1,000 and he ordered seven trips, he allowed $7,000. That was almost his uniform practice, and that happened in twenty -six of the twenty-nine orders he made. The remaining three orders were cases in which he mixed up the sum he allowed for increase of speed and increase of trips so that it is d fficult to say how much was allowed for one and how much 2GB 18 was allowed for the other. I think I shall be able to satisfy you that in two of those three cases he allowed for the increase of service the extreme amount which could by any possibility come in under the law. In twenty-eight of the twenty-nine orders made on the routes specified in this indictment Mr. Brady went to the extreme limit au- thorized by the law. You will bear in mind, gentlemen, that I am as- suming for the moment that the increases of service which Mr. Brady authorized were properly authorized, but 1 am calling yourattention to the fact that when Mr. Brady came to decide how much should be paid and the decision rested entirely with him he went uniformly to the extreme limit, and that is a thing which no honest, provident, and faithful officer could do under the circumstances. As to expedition or increase of speed you will bear in mind that, in the first place, no allowance of extra compensation is under the statute lawful unless by such increase of speed additional stock and carriers are necessary. If additional stock and carriers do not be- come necessary there can be no allowance whatever for the extra speed. We shall show you, gentlemen, cases where Brady did make large allow- ances for increase of speed, and yet we shall put upon the stand before you drivers who were carrying the mail over that route both before and after the extra allowances made by Mr. Brady; canying it on the original rate of speed, and on the increased rate of speed, and who will tell you that they did not use any additional stock or carriers, but that the identical horses and men went over that route day after day at the increased speed that went over it with the original speed j and yet Mr. Brady paid large sums for the i-xpeditiou. We wtall show you cases, gentlemen of the jury, where the unfortunate subcontractor went on doing this business, and though he had a provision in his subcon- tract by which, if the speed was to be increased, he was to get a certain percentage of the increased compensation allowed, these defendants went on drawing from the Post-Office Department the increase of com- pensation and paying him only his original compensation. The first knowledge some of these contractors had that the Government had ever allowed any additional amount was from the inspectors whom we sent out there to investigate in connection with this indictment. They in- formed the contractors that Messrs. Dorsey and others had, under the or- ders of Mr. Brady, been for years drawing thousands of dollars a year for additional compensation for service which the subcontractor had rendered at the original price and with the same horses and the same men. And here let me say, gentlemen of the jury, that you will find in this case that there was a great distinction between these defendants and many other people engaged in the mail service. That with a single exception they were not mail carriers ; that they did not go into this business with the idea of carrying the mail ; that they went into the business with the idea of getting contracts here at a low price, in many cases bidding lower than it was possible for the service to be rendered, lower than any honest bidder could bid, with the intention in the first place of arranging with some subcontractor in the locality to carry the mail. In carrying out that intention they arranged with these subcontractors not infrequently to pay them more than they themselves were getting from the Government. In such an event they took care immediately to obtain from Mr. Brady orders for expedition by which what were originally losing contracts to a small extent became at once most enormously profitable contracts. Of this additional amount which they got they gave to the subcontractor, who really performed the service, only an insignificant proportion. They kept all the rest 19 for themselves simply for their expenses in carrying on business in Washington ! We shall show to you in that connection some rather extraordinary things. As I said, the Second Assistant Postmaster-Gen- eral had 110 right to pay any increased compensation unless increased stock and carriers were required. Mr. Brady made allowances where no increased stock and carriers were allowed. Moreover, Mr. Brady made allowances even where increased stock and carriers were required greatly in excess of the proper amount. He constantly and habitually allowed sums in excess of the stock and carriers needed, and he allowed sums in excess of the stock and carriers which even were stated to be needed on the evidence before him. This provision as to stock and car- riers originated I think in the statutes in 1825. It was there a provis- ion both as to increase of service and increase of speed. It reads in this way: That no additional allowance shall be made by the Postmaster-General to the con- tractor or carrier of any mail, on any route, over and beyond the amount stipulated in the contract entered into for the transportation of the mail on such route, unless additional service shall be required; and then no additional compensation shall be allowed to exceed the exact proportion of the original amount to the additional duties required. After this statute had been in force some ten or twelve years there came up a post-office scandal, and the question was raised as to whether the statute of 18.J5 applied not only to increase of service but also to in- crease of speed. There was an investigation in Congress on that sub- ject, and it seems to me to have been unlike an investigation to which I shall have occasion to call your attention a thorough one and there- upon there came reports irom Congress and reports from the Post- master General. The Postmaster-General at that time said : For expediting the mail in point of time there can be no rule for determining the pro rata. The actual increase of expense, agreeable to an ancient provision made in contracts, is the rule which governs. It is frequently done at a less rate, but when that full rate is demanded some evidence of the increased expense is required before the allowance is made. Congress said: All that is necessary is to ascertain the expense of the original service and what will be the expense of the additional service. The rule would then be: As the amount of the expense of the original service is to the compensation therefor, so is the amount of the expanse of the additional service to the pro rata additional allow- ances. That was the view which was taken in Congress and by the then Post- master-General as to the provisions then applicable to the subject. In this case we shall show you that upon the routes in this indict- ment Mr. Brady made fifteen orders for expedition. There are nineteen routes in the indictment and he made fifteen orders. Twelve of the or- ders on their face purport to make allowances up to the full limit, gauging that limit by the alleged evidence he had before him. That is to say, if he had a statement before him that a certain number of stock and carriers was then actually required and that a certain number would be required, he applied the rule of three laid down in the statute to it and gave the extreme limit. I shall have occasion to call your attention presently to the absurdity of that evidence that he had before him on the three remaining orders. In one case he allowed less than the limit. Taking all the time the evidence on which he claimed to base his action the amount less than the limit in one case was merely nominal. In another case it was only $1,300. In a third 20 case it was very large; but it was large because of the monumental swearing of one of the defendants in this case, John K. Miner, who swore that an increase of trips would require an addition of one hun- dred and fifty men and one hundred and fifty horses, when his counsel will not dare to pretend before you that there were any additional men more than forty necessary. Yet Mr. Brady makes his order in that case as being less than the limit, or less than pro rat a, as he chooses to put it, because he accepts Mr. Miner's monumental perjury of one hundred and fifty men as true. Gauged by that, it is less than pro rata. Gauged by what was necessary, it is greatly in excess of pro rata. I shall have occasion to call your attention to some other things in connection with that affidavit. I have said that this evidence upon which Brady chose to act in making his allowances for increase of speed was false. Much of it was absurdly, transparently false. Assuming that an application was made to the Second Assistant Postmaster-General for an increase of speed on a given route, what would he as an honest, faithful officer do? Would he not ascertain how much stock and how many carriers were then actually employed in the first place, and could he not readily ascertain that by sending to the postmasters upon the route ; by getting state- ments from the men who were carrying the mail over the route, and if need be by sending one of his inspectors to find it out? Having ascer- tained that as a fact he has one of the elements necessarily entering into the question as to how much should be allowed. There was no difficulty in finding that out, gentlemen. It involved no trouble to Mr. Brady. It involved no expense to the Government, and is it not the obvious, the natural thing to do to find it out, and to find it out on the spot, from the people who were carrying the mails, how many men and horses they were using in so doing ? Would it occur to anybody to make that inquiry of the men who were here in Washington, who never were on the route, who knew nothing about it, to find out from them what they said was the number of stock and carriers then employed, and to accept their statement as final and conclusive? Would any or- dinary business man think of doing a thing of that sort? And let me show you here, gentlemen, just the importance of this condition of things. The statute says : The additional compensation shall bear no greater proportion to the additional stock and carriers necessarily employed than the compensation in the original contract hears to the stock and carriers necessarily employed in its execution. You have to find out how many are employed at the moment under the original contract, and then how many will probably be employed under the increased speed. One is a question of fact, the other a mat- ter of opinion. Now, suppose a contract provides that they shall carry the mail three miles an hour at $5,000 a year, and it is proposed to make an increase of that rate to four miles an hour. The question of course is how much additional stock and carriers are necessary. If in fact on the existing rate of speed it requires ten men and carriers, while it will take on the increased rate of speed twenty men and carriers, then by the rule of three laid down in the statute, $5,000 being the sum allowed for the original service, $10,000 would be the sum allowed for the increased service, because it takes twice as many horses and carriers on the in- creased speed as upon the original speed. But accepting that as the true state of the fact, suppose that in making up the calculation instead of taking those items, and instead of saying that it now takes ten men and horses to carry the mail on that route, Mr. Brady says it now takes five men and horses to carry the 21 mail on that route, and it will take twenty men and horses on the in- creased service. In that way he has understated the number of men and horses by five, just half, and he is taking the increased number of men and horses as the same in each case. What is the result! The" result is that instead of allowing $10,OUO for the increased speed where $5,000 was the original allowance, Mr. Brady allows $20,000 when he should have allowed $10,000. He has doubled the amount taken from the Treasury by the simple expedient of understating by one-half the number of men and horses whicli were then actually used. You see, gentlemen, the importance of getting at that fact, and get- ting at it accurately: " How many men and horses are now used when I am about to make this order for increase of speed is the question, because if I understate the number of men and horses, then 1 allow from the Treasury a sum in excess of the legal amount." But the Gov- ernment could be, and was, defrauded in the other way; that is, stating the number of men and horses that were used at the moment cor- rectly, say, when ten were then actually in use. In fact it would have taken twenty to perform the increased speed, but Mr. Brady estimated upon thirty, and in that way you tind, following out my comparison of $5,000, if Mr. Brady takes and states correctly the number of horses actually employed, but increases the number that will be employed to thirty instead of twenty, the result is that instead of allowing $10,000 from the Treasury he allows $15,000, and on the face of the thing it is all pro rata. The rule of three works very well if his elements going to make it up are correct. It was in that way that Mr. Brady's most mag- nificent exploits were performed. He understated the number of men and horses actually employed then, and overstated the number of men and horses that would be employed. You will find that in place of $10,000 which could have been legitimately taken from the Treasury, $30,000 was the allowance, and yet on the face of the thing it was all straight; he had applied it all right and he had only gone to the limit; he said ft ve men and horses are now employed, when, in fact, ten were employed, and he said thirty would be employed, when in point of fact twenty were all that were needed for the increased speed. So that you will see, gentlemen, that these two little elements and this little arith- metical rule put into the statute gives the means by which by a slight change in figures the Government can be very largely defrauded. Put the original figare too small or the future figure too large as tothe num- ber of men and carriers arid you cheat the Government. Either put one too small or put the other too large and you cheat the Government. Put one too small and the other too large and you treble the cheat substan- tially. Now, what did Mr. Brady do in ascertaining these most important numbers? Did he do as any honest man would do, as any fair official would do ? Did he make any effort to find out what those numbers were? Did he send tothe locality and find out how many men and horses were then actually being used $ Did he inquire of people ex- perienced in the business', and not interested in the sums to be allowed, as to how many would be used on the increased service f No, gentle- men, he did this, and only this, and I want you to bear it in mind, for it is literally true: He went to the man who was to be benefited by the allowance, who was to get the money from the Treasury, and he received from him a brief affidavit not larger than that [exhibiting a folded paper], in which the man said that the number of stock and carriers now employed on a given route are so many, and the number that will be employed on an increase of speed will be so many. He 22 took the statement of that interested man as the sole evidence upon which he acted, and upon such affidavits he made orders under which he took thousands and hundreds of thousands of dollars from the Treasury of the United States, and put them into the pockets of the men who made those affidavits, barring and excepting the toll that he took for his own pocket as he went along. I say, gentlemen, that that is literally true. We have searched in vain to find a case where Mr. Brady prior to making an order for in- crease of speed inquired of any human being how many men and horses were then being used on the route, or how many men and horses would be .used on the route, other than of the man who was to be di- rectly benefited by the order he was to make and who was therefore interested to misstate in both respects. Gentlemen, if there were nothing else in this case than Mr. Brady's action in that way upon those papers we should ask you to say that Mr. Brady had so acted as to deserve from you a verdict of guilty, But there is. gentlemen, much more than this. There appears in the Regulations of the Post Office Department, published in the year 1879, a provision which was obviously enforced by Mr. Brady prior to that date, and yet we are unable to say when it was first applied. It does not appear in the Regulations of the Post-Office Department published in 1873. It does appear in those published in 1879. It was applied by Mr. Brady, or availed of by Mr. Brady, in every expedition that he made after he came into office in July, 1876. While I do not think it was used before that time I am not prepared to assert that it was not. It may possibly have been in existence before that time, but it was not ordinarily used. That provision is this : When it becomes necessary to increase the speed on any route the contractor will l>e required to state under oath the number of horses and men required to perform the service according to contract schedule and the number required to perform it with the proposed increase of speed. That provision is of course a very proper provision to be made in such a case that the contractor who is to be benefited should be re- quired to give his own statement, and to give it under oath, of the number of men and horses he is then using and the number that he believes he will use. But I ought to call your attention to one fact. This regulation speaks of the number of men and horses that will be used. The statute speaks of the number of stock and carriers, and in the prog- ress of this case you will see that it will be claimed that this regula- tion is broader than the statute, because while the statute says you can only take the number of stock and carriers engaged in carrying the mail, in your estimate under this provision, which it is claimed is broader than the statute, you can take men who were employed as hostlers and everybody else who was directly or indirectly engaged in the mail carrying, even to the extent of reckoning in the men who were employed in driving the wagons that hauled the oats on which the horses were fed, though they never saw or touched a mail. That regulation, if it is thus broader than the law, was habitually resorted to by Mr. Brady, and, if thus broader than the law, is very clearly an illegal regu- lation. Yet it was a very proper regulation in some form to get from the contractor his statement, as the party-interested, of what he claimed it would be. Of course we all know that human nature is weak, and that if we were to be benefited by an increase of compensation we should be apt to be pretty liberal. We probably would try to state correctly the number of men and horses we are now using, but I think our judg- ment would be a good deal biased in getting at the number we should 23 be likely to use; and tliat ought always to be borne in mind in refer- ence to this matter. But Mr. Brady, under that regulation, took from the contractor, or claimed to take from the contractor, his affidavit of the number actually used, and the number that would be used, and he took nothing else. He took that affidavit of the contractor. He sought no evidence anywhere else, and upon the basis of that affidavit he made his orders allowing to the contractor the extreme limit which that affidavit showed him entitled to. And he said that was a fair and provident administration of the Post-Office Department of the United States. But not only that, you will bear in mind that this affidavit says that the contractor will be required to state under oath the number of horses and men required. But when it suited Mr. Brady's conven- ience, when these defendants wanted their order for expedition, so that their increased pay might commence promptly, and the contractor was probably not available to 'make the affidavit, they quietly had some- body else make the affidavit and Mr. Brady accepted it. If that some- body else had been somebody who had been on the route, who knew anything about it, there might have been some justification for it. But the order was made upon the affidavit of somebody who had no connection with the route, who had never been near the route, and knew nothing about it. I do not wish to make a general statement of that kind without referring to specified items. I am referring only to routes in this indictment On the route from Pueblo to Eosita, No. 38134, the contract was the contract of John II. Miner, one of these defendants. So far as the Post-Office Department knew, outside of the illegitimate knowledge which Thomas J. Brady had, John E. Miner was the only person con- nected with that contract for carrying the mails. Yet, when they wanted to increase the compensation, Mr. John W. Dorsey, another of these defendants, unknown to the Post-Office Department so far as this route was concerned, made the affidavit called for by that regulation. Mr. Brady accepted it as conclusive, and upon that affidavit made the or- der for an allowance of a large amount of extra compensation. On route 38140, from Trinidad to Madison, John E. Miner was in like manner the contractor. Did he make the affidavit! And let me say, gentlemen, you will find in the progress of this case that it was not from inability to swear that Mr. Miner did not make the affidavit in this case. Instead of his making the affidavit in the case Mr. John W. Dor- sey again came to the front and made the affidavit which Brady took as a sufficient voucher for taking from the Treasury a large amount of money. On the route from Vermillion to Sioux City, No. 35015, the contractor was the same John E. Miner, I think. I do not remember who the contractor was there. Whoever the contractor was, Mr. Harvey M. Vaile, another of these defendants, who was the subcontractor, made the affidavit upon a sheet of note paper with the heading of the National Hotel upon it. He made it in this city, and made it when he never had been upon the route and never knew anything about it, except that he was going to make by that affidavit a good, round, handsome profit. He made that affidavit as subcontractor, though it was not in accordance with the regulation at all, and Mr. Brady accepted it and took it as his sole basis for his order taking money from the Treasury. On route 38113, from Eawlius to White Eiver, in like manner Mr. Perkins, the subcontractor, made the affidavit ; but Mr. Perkins had this advantage over anybody else in this case who made an affidavit 24 upon which Brady acted : Mr. Perkins had been on the route. No other human being who made one of these affidavits upon which Mr. Brady acted had at the time he made the affidavit ever been upon the route to which it related or had any knowledge as to the number of men and horses actually employed, and, other than Mr. Vaile, none of them had by experience a right to say how many would be needed, for none of them other than Mr. Yaile had ever been a mail contractor. They were nothing, gentlemen, but a set of speculators in mail contracts, and never expected to carry the mails, but expected to get the contracts at a low price, get them expedited, and get the service performed by sub- contractors, to whom they would pay an insignificant proportion from the amount that they drew from the Treasury of the United States. What is the result of allowing such affidavits, so made by these par- ties, to be accepted ? Why, the result was, and we shall place before you the witnesses who will show it, that the statements were almost uniformly false of the number of men and horses then actually in use, they being almost uniformly understated, and the number of men and horses to be required on the increased service almost uniformly over- stated. We are not going to ask you to come to that conclusion on any question of opinion. We are going to put before you the men who drove the horses before and after the increase. And we are going to have them tell you in their frank and honest way precisely what were the facts. These affidavits, made by contractors or subcontractors who had never seen the route, and which Mr. Brady chose to accept I am not permitted in my opening to show you the papers, gentlemen, for they are not yet identified we shall have occasion to show you, and I think, from the mere inspection of them, you will he able to see that not only no honest man. but no man who was not going on in a career of fraud and corruption, under the impression that he would never be investi- gated, would have made orders upon such papers. They are altered. They are erased. They are changed. They bear all the insignia of fraud upon their faces. But that is not all, gentlemen. We find this extraordinary condition of things. On route 38134, from Pueblo to Kosita, which, 1 think, is the same route upon which the obliging Mr. John W. Dorsey, as I have just stated to you, was allowed to make the affidavit i?istead of Mr. Miner, we iind that there were actually on file in Mr. Brady's office when he made the order for expedition, two oaths, both made by John W. Dorsey, both sworn to before the same man on the same day the 21st day of April, 1879 and in one of them he says, "The number necessary to carry the mail on that route on the existing schedule is two men and six animals;" and in the other affidavit he says, " The number neces- sary to carry the mail is three men and twelve animals." Those two affidavits were before Mr. Brady, made by John W. Dorsey on the same day, and yet Mr. Brady chose to pick out one or the other of them and say, "I believe that as the absolutely conclusive statement of the number of men and animals that are now in use upon that route, and upon that affidavit I will make my order taking from the Treasury thousands of dollars of money." You will see that the first affidavit made the number two men and six animals, making eight as the number of stock and carriers then in use ; but the other one called for three men and twelve animals, making fifteen as the number then in use, and therefore, according as he accepted one or the other, by the rule of three, to which I called your attention just now, there 25 would be twice tlie amount of money allowed from the Treasury under the one affidavit that there would be under the other. But the point to which I am calling your attention now is, that Mr. Brady chose to accept one of the affidavits as true when he had before him the two affidavits, and one or the other must have been square per- jury. Yet, as I say, he accepted the affidavit of a man not connected with the route, when he had the evidence before him that that man had committed square perjury in swearing. The COURT. Which of those affidavits did he use ? Mr. BLISS. Well, sir, for the moment, I cannot say. My own im- pressions about it are. and I think, on reflection, we shall be able to show it to you, that it was concluded that the one stating- the small sum was a little too bad, and that that would not do, and that the other was put on file. I do not remember at this moment how that was. These routes get a little mixed in my memory. Mr. DAVIDGE. You do not recollect which he acted on ? Mr. BLISS. I do not, sir. Mr. INGERSOLL. The affidavit requiring the least money was the one acted on. Mr. BLISS. I undertake to say, as a matter of fact, that that was not so. Mr. DAVIDGE. Very well. Mr. BLTSS. The only doubt in my mind is precisely this : Whether the result of the application of the rule of three to the two affidavits did not make the amount required under each of them substantially the same by understating one and the other. They did not balance- But I do say that I am very clear that he did not act upon the affidavit which gave a less amount than the other affidavit would have given. It may be that both the affidavits would have given the same sum. I do not know whether that is true or not. The only doubt in my mind is as to that. But, gentlemen, the point to which I am directing your attention now is not how r much money was taken from the Treasury upon these affidavits, but I am directing your attention to This: That a man who could, on the same day, swear to two affidavits which are so inconsistent as these, and who had therefore as to one of them committed a perjury, was the only witness whom Mr. Brady accepted as satisfactory to him as to how much money should be taken from the Treasury of the United States. I do not care whether they took the smallest or the largest sum. They took it upon the evidence of a man whose perjury stared Brady in "the face, and Brady chose to say that was sufficient. Now, as to the other affidavit. In one of them he swore that on the increased rate of speed there would be required six men and eighteen animals. In the other affidavit he swore that on the increased rate of speed there would be required seven men and thirty-eight animals. The total, you will see, is in one case twenty-four, and in the other case forty-five. Having sworn to two affidavits, both of which could not be true, and one of which must be a lie, it was. natural that he should go on and swear that in his opinion, and in his experience, there would be required in the one case twenty four men and animals, and in the other case forty-five men and animals There was falsity necessarily in one or the other of those affidavits, and in both branches of one or the other of the affidavits. It may be that the rule of three, as worked out between them, would result in taking from the Treasury only the same amount of money. That I do not care about on the present occasion. The point I ain making is that the affidavits showed Mr. Brady that that man was not 26 a safe man to take as bis guide. He was not the contractor and he was not the subcontractor. He had no relation to the routes, and yet Mr. Brady picked him out because he happened to be conveniently available to set in motion the machinery by which, at the earliest possible moment, money was to be taken out of the Treasury of the United States. One of those affidavits was filed on the 6th of May, 1879. Another of them was filed on the 8th of May, 1879. The order was made after the latter date when both affidavits were on file. Mr. Dorsey, it is true, having put the first oath on file, on the 6th of May wrote a letter in which he asked permission to withdraw the first affidavit. He was apparently afraid that Mr. Brady would not have his attention called to the fact that he was a perjurer. So he asked permission to withdraw the affidavit to correct an error therein. The next day he corrected the error by putting on file the second affidavit, and so far as the correction of the error was concerned you will see that there is not a single figure in the two affidavits which is identical; not a single figure. The number of men and horses actually used is given in each and the figures do not agree, and the number of men and horses which would be required is given in each and the figures do not agree there. That is what he calls correcting an error. But the same Mr. John W. Dorsey made another error. On the llth of March he swore to an affidavit on route 38145, from a place down iu New Mexico called Ojo Calieute to Parrott City, that the number then necessary to carry the mail was three men and seven animals. He took that oath up in the pure air of Vermont, gentlemen, and six weeks later he got into the contaminating atmosphere of Washington and then he found out that instead of three men and seven animals, it would take five men and fifteen animals. In the one case the aggregate was ten which was to be used as the factor in estimating the amount to be taken from the Treasury, and in the other case the aggregate was twenty which was the factor to be used. You will see those figures agree pre- cisely with the supposititious case which 1 took up when 1 was trying to illustrate to you the effect of this rule of three in the statute as to expedition. The COURT. According to that the lower the figure the more the money ? Mr. BLISS. The lower the figure as to those actually in use the more the money. The higher the figure as to those to be used the more the money. Mr. DAVIDGE. As I understand it the point contended for is that they lowered the past and increased the future. The COURT. Yes. Mr. BLISS. They lowered the present. The COURT. For example, take one as the original figure. If six is the second figure, it would be multiplied by one. If the original figure is two and the next figure six, that would be three times more than two. So that it was to the interest of the contractor to reduce the first num- ber and increase the second number. Mr. DAVIDGE. He has already stated that several times, your honor. The COURT. I know. Mr. INGERSOLL. There is no doubt about that. Mr. DAVIDGE. It is a mathematical calculation. Mr. BLISS. There is obviously an excuse for the two affidavits being on the record on this route, because the first affidavit, made iu Vermont, was made when Mr. Dorsey and his associates were looking to an idea of getting the speed so increased that the time would be reduced from 27 one hundred and twenty hours, I think it was, to eighty hours. The second affidavit was made when they had become more enterprising, and had concluded, six weeks later in Washington, that they would get the time reduced, not to eighty hours, but to fifty hours. You will see that no matter to what time they proposed to reduce the time, no mat- ter what the rate of increase of speed was proposed to be, yet in both cases in the affidavit which stated the number of men and horses then actually in use they should have stated the same number. There was no change there. But there would undoubtedly be more horses required in the future to reduce the schedule to fifty hours than were required to reduce the schedule to eighty hours. Therefore there was a reason for Mr. John W. Dorsey's getting two affidavits on the files of the Post- Office Department, and it was not an error that he had to correct. The only error was that he forgot when he made the second affidavit what he had stated in the first affidavit as to the number of men and horses actually in use. Those two affidavits were both on file, both staring Mr. Brady in the face, and both in the very envelope on which Mr. Brady indorsed his order allowing increase of pay. He based his or- der upon the papers which he recited were inside of the envelope. They could not both be true. Mr. Brady chose to accept the man who made those two affidavits, both of which could not be true, as his sole author- ity for taking money by thousands from the Treasury of the United States. There is no escape from that, gentlemen. There is another case. On route 38113 John W. Dorsey was the contractor. A letter was written by Montfort C. Kerdell, one of the defendants, a clerk of Stephen W. Dorsey, then still a Senator. That letter was written on paper of the Senate of the United States. It was written to Perkins, the subcontractor at Rawlins, Wyo., sending him an affidavit to be sworn to in blank by him as subcontractor. He directed him to swear to it just as it was, leaving the blanks unfilled. Perkins swore to it just as it was, and he sent it back here with the blanks unfilled. Immediately afterwards the blanks were filled in and the affidavit was filed in the department. It is in Mr. Brady's order recited as the affidavit upon which he based his order for expedition and allowance in that case. We shall place before you the notary public who took the affidavit. We shall place before you Mr. Kerdell's letter directing it to be taken just as it was, without change. We s*hall place before you the man who swore to it. They will all tell you that that affidavit was sworn to in blank, was sent here to these defendants, was by one of them filed in the department, and was made by Brady the basis of the order upon which he directed tens of thousands of dol- lars I think it was to be taken from the Treasury of the United States. But, gentlemen of the jury, we shall show to you a still more ex- traordinary condition of things. We shall show you that the ability to make two affidavits which were inconsistent was not confined to John W. Dorsey. On route 35051, from Bismarck to Fort Keogh, you will find a good many queer things, but I will now only ask you to remem- ber one : John E. Miner, by an oath filed on the 4th of October, swore that to carry the mail over that route in eighty-four hours, which was the original time, took twelve men and thirteen animals, making twen- ty-five in all, and that to carry it in sixty-five hours, which was about twenty hours' reduction, would take one hundred and fifty men and one hundred and fifty animals. Now, in that affidavit he did not expressly say that he was referring to an eighty-four hour schedule, but he was making an affidavit for the purpose of getting the time reduced to sixty- 28 five hours, and he did so tinder a regulation compelling him to state the number which would be required. That is the route on which I told you that Brady, acting upon the evidence of this monumental swearer, said that this allowance was less than pro rata. By mak- ing the allowance less than pro rata he still carried the original compensation of, I think, $2,250 up to $27,950. He said, allowing him $27,950, and assuming that it would take three hundred men and horses to carry the mail on the increased rate, that that was less than pro rata. Well, it was less thaii pro rata upon that basis. But what do we find? We find this condition of things: In the Post Office De- partment, as in other public offices, the papers relating to a given route are tiled away in what is practically a long envelope cut open at the ends, and is known as a jacket. When Mr. Brady made an order it was made on the back of the jacket, and referred to the papers which were inside. The order recites that upon such and such papers it ap- pears so and so, and therefore it is ordered so and so. Mr. Brady's practice was to look over these papers, and then to indorse ordinarily in pencil on the back of the jacket "Do this Brady." That indorse- ment was the voucher on which some clerk went to work and wrote out a formal order, which was indorsed on the back of the jacket, reciting the papers; and that was the authority under which money was taken from the Treasury of the United States by hundreds of thousands and millions. Kow, in the very jacket on which Mr. Brady indorsed the allowance of $27,950, and felicitated himself that it was less than pro rata, accepting Mr. Miner's statement that it would take three hundred men and horses, we find this condition of things : We find inside of the jacket another jacket which contains an indorsement reciting precisely the same petition of the same officers and the same papers in every respect all the way down, agreeing almost absolutely, and yet when we come to see on what it is based we find this : The contractor, that is, Miner Furnishes sworn statement that for service three times a week on the present schedule eleven men and twelve animals are required. That was not much different from the affidavit which was finally used, which is twelve men and thirteen animals, making twenty-five in the ag- gregate instead of twenty-three. But he also furnished a sworn state- ment that thirty seven men and seventy-three animals would be required on a sixty-five-hour schedule. He swore that a hundred and fifty men and a hundred and fifty animals would be required on the eighty-four- hour schedule, and Mr. Brady accepted that and made an order upon it, felicitating himself that it was less than pro rata, and that he had saved a few hundred or a thousand dollars ; but he had before him at that time the affidavit of the same John R. Miner that to make a speed of sixty-five hours it would require only thirty -seven men and seventy-three animals, making a hundred and ten as the factor to be used in calcu- lating the amount, and not three hundred, as it was made under the affidavit which Mr. Brady chose to accept. The existence of that affi- davit is recited upon the paper in the very jacket on which Mr. Brady made his order. That affidavit has unfortunately disappeared, how or when we cannot say; but we shall place before you the man who in- dorsed that jacket to which I referred as on the inside and he will tell you that that affidavit was there, that he made that indorsement upon the inside jacket, and that the inside jacket so indorsed was in Brady's possession at the time he made the order. When he was making an order upon John K. Miner's affidavit he had the statement before him 29 that it would require a hundred and fifty men and a hundred and fifty ani- mals to carry the mail at a certain rate, and yet John E. Miner had also filed an affidavit stating that it would take but thirty-seven men and seventy three animals to do the same service. Brady chose, with that evidence staring him in the face, to accept Mr. John E. Miner's affidavit as sufficient to justify the making of an order carrying up an allowance of $2,250 to $27,950. Gentlemen of the jury, we shall ask you from that evidence, from evidence such as that, and from evidence other than that, to draw the inference that Mr. Brady's action in this matter was not that of an honest, incorrupt official. On the nineteen routes in this case there were on file eighteen affi- davits used for expedition. On one of the nineteen routes in this indict- ment there never was any expedition. The fraud upon the Govern- ment there consisted in paying twice over for the same service. One of the eighteen affidavits was made by Vaile. I have already told you that it was made on National Hotel paper and made in this city, and was made and filed although Vaile did not pretend ever to have been on the route or to have known of his own knowledge anything that he swore to. He did have the advantage over the other defendants of be- ing a mail contractor, and therefore had some experience upon which to judge on a statement of facts by others, as to what would probably be required. But he had no knowledgeas to what number was actually required. That affidavit of Vaile's is an unaltered affidavit. It will come before you with no evidences of alteration upon it. There is an- other affidavit made by Miner which will come before you without any alteration. Every one of the remaining sixteen affidavits which were used as the basis for making orders to take money from the Treasury of the United States will come before you bearing upon their face evi- dences of alterations, erasures, or insertions. They are sworn to in. regular form, and yet erased and with insertions so made that no busi- ness man would accept them. They would not be accepted in any court or by any business man without some explanation. Why are these al- terations there J ? Why are all the affidavits full of erasures T The era- sures and the alterations are in every case with regard to the figures, which were the elements which determined how much should be taken out of the Treasury of the United States. We think we shall be able to satisfy you that these affidavits present evidence of the growing greed of these parties, that they were made at a time when they were content to take from the Treasury one amount of money illegitimately, but as their immunity went on and their greed increased, they thought they would have more money from the Treasury. It may be, that their expenses were greater. It may be tbat they, had to make larger u divvies.' 7 At any rate their greed increased, and then they altered the affidavits by putting in, larger figures. However that may be the affidavits were all made except that of Perkins, which was sworn loin blank by men who were never on the routes. Sixteen of the eighteen were altered on their face, and those affidavits were the only evidence which Brady had be- fore him, on which the allowances to these defendants were run up from $41,000 a year to $448,000 a year. We shall ask you on that evidence of course, in connection with other evidence to say that the acts of Brady and these other defendants were the acts of men engaged in a corrupt conspiracy to defraud the United States. Brady violated not only the spirit of the law, but he violated its direct letter. He acted upon insufficient affidavits. He acted upon altered affidavits. He left it to the person benefited to be the sole judge of how much he should have from the Treasury. He accepted evidence which could not have 30 been accepted by any honest man if he was not blind. He made allow- ances on that evidence in excess of what the evidence called for. He made allowances in violation of the statute by antedating the effect of the orders. All this we shall show you by the records of the depart- ment, which there will be no attempt to impeach. I said that he ran up the amount from $41,000 to $448,000 qn such orders and based upon such affidavits. I was not entirely correct in that state- ment. That amount is the aggregate amount of increases not only for expedition which had affidavits as its basis, but it also included in- crease of trips for which no affidavit was required. Trips were in- creased at Brady's own sweet will, because the law only said that the pay should not exceed the proportionate amount of increase. As to expe- dition, the l;iw said there must be this arithmetical calculation. Hence the device of these deceptive affidavits to comply seemingly with the law. ' In point ot fact Brady made, I think, thirteen orders for expedi- tion, carryiiiii' up service already incurred to $159,299.95 to $317,718.54, or just about double. At the same time, and without affidavits, he made the increase of trips carrying it up to $448,000. 1 may have got confused on these figures to some small extent. Some of these orders were not his in form, but were so in fact. But, gentlemen, these affidavits told their own tale in another direction, the taleot their absurdity, the tale of the impropriety of Brady's undertak- ing to base anything upon them. Take route 35051, from Bismarck to Fort Keogh, upon which Miner made these two affidavits. On the original schedule the speed was three and sixty one-hundredths miles an hour. On the expedited schedule it was four and sixty oue-hundredths miles an hour. Practically an increase of one mile an hour. On theorig- nal schedule, judging in each case by Miner's oath, each horse had to travel twenty three miles a day not an excessive distance. But on the expedited schedule, assuming that as many horses were needed as Mr. Miner swore to, each horse would have to travel only two miles a day. Mr. Brady accepted the statement that it was necessary on that route to have such a number of horses that no horse should travel more than two miles a day. If they had used double teams they would have had to have gone four miles a day. I am obliged to use an illustration not arithmetically correct, because if you reduce anything a hundred per cent, you wipe it out; but it will probably carry to your minds the idea I want to express when I say that they made an increase of speed of a mile an hour and thereby reduced the capacity of each horse four hun- dred and fifty per cent., and upon that route, gentlemen, this was done ; the route being started at $2,350 a year, by the addition of in- creased trips $14,100 was added ; then by the addition of the increased speed of one mile an hour $55,000 more was added, and the result was that that route, let to Miner after public bidding, which originally started at $2,350 a year, before he and Brady got through with it, was run up to something over $70,000 a year, and run up, gentlemen of the jury, as to all except $14,000 of that amount upon the affidavit of John II. Miner, which the papers on file in Mr. Brady's office showed him could not be true, because there were two inconsistent affidavits there, and a mere analysis of the affidavits showed it could not be true, be- cau.se it proceeded upon the basis that each horse would have to travel only two miles a day. Now take another route. On the route from Pueblo to Eosita, by the original schedule, the speed was three and twenty-six one-hundredths miles an hour, and on the expedited schedule it was four and nine one- hundredths miles, therefore increasing it somewhere about three-quar- 31 ters of a mile an hour. On the original schedule every horse would have to travel sixteen and one-third miles a day. To make three quar- ters of a mile more in an hour over that short route, it was necessary to reduce the daily travel of each horse from sixteen and one-third miles to five and four-ninth miles a day. The horses that that affi- davit said would be necessary for the increased speed would have to travel to make it only five and four ninths miles a day. Does anything need to be said, gentlemen, to show you that it is not necessary for hors s in carrying the mails at a rate of about four miles an hour that they shall travel only five miles and a half in a day 1? On the route from Silverton to Parrott City, on the original schedule, evei*y horse would have to travel thirteen miles a day only thirteen miles a day, mind you. I am taking the statement of the men and horses in actual use. And on the expedited schedule every horse would have to travel four and one-third miles a day. On the route from Mineral Park to Pioche, on the original schedules, every horse would have to travel six and sixty-four one-hundreths miles a day. On the expedited schedule the horse would have to travel six and twenty one-hundredths miles a day. Does anybody need any argument to show that either on the original or on the expedited sched- ule it is absurd to suppose that a horse could g > onl} T six arid one third miles a day f On that route it is right to say that the fraud did not chiefly come in in that connection. They had some queer inconsistencies in these affidavits. They might have sometimes benefited themselves by being more consistent. On the route from Toquerville to Adairville every horse on the orig- inal schedule would have to travel twenty-four miles a day, but on the expedited schedule he would have to travel only thirteen and one- third miles a day. On the original schedule the rate was two miles an hour. You will see how they understood it there. Accepting the state- ment of horses actually in use, every horse that they stated was in use, to have got over the route in the schedule time of two miles an hour would have to travel twenty-four miles every day. Every horse would have to travel all the time every day, week in and week out, if t ley only had that number of horses alleged. And yet Mr. Brady ac- c ipted that as conclusive. And if on t..at route there had been put on soven trips a week which the affidavit was seeking to get, and that affi- davit was made upon the basis thatt here would be seven trips a week, every carrier would have to travel eighty miles in a day, and what is the climax of absurdity, he would have had to travel forty hours in every twenty-four. That is the affidavit, gentlemen, that Mr. Brady accepted. That is the sole affidavit and the sole evidence that he had and on which he took thousands of dollars from the Treasury. On the route from Eugene City to Bridge Creek, on the original schedule, according to the affidavit, each horse would have to travel nineteen and seven one-hundredths miles a day, and on the expedited schedule he would have to travel only five and nine one-huudreths miles a day. On the Canyon City and Camp McDermitt route, on the original schedule, accepting the affidavit always, each horse would have had to travel eight and sixty eight one-hundreths miles a day. On the expe- dited schedule he would, according to the affidavit, have had to travel only three and fifteen one-hundreths miles a day; and on that route, gentlemen, to carry the speed from one and eighty-seven one-hundredths miles an hour, which is a little less than two miles an hour, up to two and one-half miles an hour, Mr. Brady, upon such aii affidavit as I have 32 just described to you, ordered paid to these defendants $29,950. To carry the speed up on that route in Oregon through an unfrequented region one-half a mile an hour he paid $29,1)50, and, to be accurate, gen- tlemen, 06 cents. On the route from Julian to Colton, if we take the oath as correct, on the original schedule each horse had to travel twenty and six one-hun- dredths miles a day. On the expedited schedule, if we take the oath as correct, he only had to travel five and seventy-two one-huudredths miles a day. On the route from Bedding to Alturas on rhe original schedule a horse had to travel twelve and eight one-huudredths. On the expedited sched- ule, taking the affidavit as correct, he had to travel only tive and seven one-hundred the a day. On the route from Saint Charles to Greenhorn, on the original sched- ule, a horse had to travel twenty-seven and forty-three one hundred ths miles a day, and when it came to the expedited schedule that horse had to travel only six and eighty-five one-hundredths miles a day. And yet, gentlemen, we shall show you that it was the same horse all the time, and that he went over that route in the same way ; that there was no increase of horses and no increase of men, and we think the affidavit was in fact a lie, just as all these affidavits showed to Mr. Brady, or to any officer, or to any man who chose to examine them, that on their very face they were lies. Yet those affidavits were the sole evidence upon which Mr. Brady took enormous sums from the Treasury of the United States. I could go on and give you additional details of those affidavits. You must believe, gentlemen, for the present certainly, that they are all of that same general nature. They are all cases where the affidavit showed upon its face that it was not and could not be true. But, gentlemen of the jury, Mr. Brady had before him at the time he made these orders other evidence showing that he was doing what no honest officer could do. I have already referred to the law as to placing the subcontract on file. I think there is but one of the nineteen routes which was run by any of these parties. Upon all the others they had subcontracts, as I recollect, though in some cases the subcontracts were not put on file, and I shall presently have occasion to show you why they were not put on file. The subcontracts that they made were on a form that they had prepared and had printed themselves and contained provisions that the subcontractor agreed to carry the mail on the existing schedule and at the existing rate of speed, the same number of trips, and the same amount of speed, for so much money. Then they contained the provision that, supposing the original schedule is one trip and two trips shall be ordered, they will carry it for a given sum, which is less than double the amount. If three trips shall be ordered that they will carry it for a given sum, which is less than three times the amount. And then, also, most of them con- tained the provision that in case the speed should be increased, they will carry the mail at the increased speed for a certain percentage of the amount allowed by the Government. I think in no case is it stated at over (>5 per cent, of the amount to be allowed. You will bear in mind, gentlemen, that the law said that Mr. Brady could not allow any sum in excess of a given amount. His duty, as an honest officer, was to get it as much below that sum as he could get it and have the service fairly and properly performed by someone who would feel that he was adequately compensated for the service rendered. And yet you will find this condition of things : that when Mr. Brady had before him on the files of his department subcontracts which said that a certain man 33 was actually carrying the mail at three miles an hour, that he agreed to carry it at four miles an hour for 65 per cent, of the additional allowance from the Government, Mr. Brady would make an order say- ing that there shall be allowed for carrying the mail on the increased service $10.000, and of that $10,000 $4,500 shall ,go to the man who has actually to carry the mail, and $6,500 shall go to the man who is to sit here iii Washington, and make the arrangements to get this expedi- tion ordered. Mr. Brady having those subcontracts on tile in his de- partment, where he saw that people agreed to do the expedited service at 65 per cent, or a given percentage (I think in some cases they agreed to do the expedited service for a round sum, but I am not sure about that), made orders for those large sums and actually put into his order that only a fragment of that amount should go to the man who was to carry the mail, and the remainder was to go to the man who was to sit here in Washington and not carry the mail, and did that under that law which I have read to you, and I suppose claims that that was an honest exercise of his powers. You will bear in mind that he did not voluntarily do that. When a subcontract got on file, under the sub- contract law, the money that the subcontract called for had to be paid to the subcontractor, and therefore when Mr. Brady made an order for expedition in a case where a subcontract was on file he had to pro- vide in his order how the money should be distributed. But, gentle- men, these parties took pretty good care not to have very many of these subcontracts on file. They made it, as we shall show you, a condition in a large number of cases where there were subcontractors, that they should not put their subcontracts on file, and for fear that the subcon- tractors might become acquainted with the character of the parties with whom they were dealing and violate their agreements and put their sub- contracts on file, these defendants resorted to this little device: On a given route the post-office contract was with John E. Miner, on an- other route with John M. Peck, and on another route it was with John W. Dorsey. Well, what was done with these? John E. Miner on his route would make a subcontract with John W. Dorsey as a sub- contractor, and would put that on file, and as the law did not allow but one subcontract on each route, if the subcontractor out in the locality sent his contract here, as some of them did, to have it filed they would be answered, " We cannot file it ; there is another one on file." John W. Dorsey in turn on his route would make John E. Miner the sub- contractor, and then John M. Peck on his route would make John W. Dorsey the subcontractor. Occasionally they would vary the matter by making their clerk, Montfort C. Eerdell, the subcontractor and file his subcontract. Arid after Stephen W. Dorsey got out of the Senate and he thought it was safe for him to throw off the cloak, then Stephen W. Dorsey would come in occasionally as subcontractor. Every one of these men were interested in some of these contracts and in this conspiracy ; but no one of them was a mail contractor; no one of them ever carried the mail a mile. No one of them ever expected to be a sub- contractor in fact, and as to many of these routes these bogus subcon- tracts were placed on file instead of the existing subcontracts with the men who were carrying the mails. When Dorsey became the subcontrator for Miner, or Miner for Peck, or John W. Dorsey for brother Stephen, they always made a subcontract by which they were to have the full amount awarded under the contract, including all that was to be given for expedition or increase of service. They were to have the whole thing. So that it was not necessary in these cases, when Brady came to make his order, to put in any specification how much of the amount 3GB 34 that lie awarded for expedition was to go to the man who was to run the mail ami how much to the man who sat here in Washington doing nothing, because Mr. Brady made his order that the whole amount should go to the subcontractor who was sitting here in Washington doing nothing, except making little arrangements, applying a little " greaf-e," and doing what was necessary to get these things through the Post-Office Department. In that way the subcontract law was, in the ordinary language, "beat," and Mr. Brady was prevented from the necessity of making any undue exposure of his own corruption in his orders for expedition, because he had not to say in* those cases that any money should go to the man who was not in form at least carrying the mail. "With reference to that let. me call your attention to one of two in- stances. On the route from Julian to Colton Mr. Brady made the order for expedition, directing that $17,964 should be allowed for the expedi- tion, and that only $10,500 of that should go to the man whom he knew was actually performing the service, and he directed that the remain- ing $7,404 should go to the man whom he knew was not performing the service. So, on the route from Eawlins to White Biver, the contractor got $13,706.25, and the unfortunate subcontractor got $5,100. , There was a later stage in that case at which the contractor got $31,000, giving $23,000 to the subcontractor and kept $8,000 to himself. There are a series of those cases which I have here t. One mill- ion seven hundred and seventy- eight thousand dollars was saved Mr. WILSON. One moment. I want to interrupt you. I wish now to understand whether or not it is proper in this case to institute a comparison between one contract term and another contract term. That is to say, I wish to know whether it is proper for counsel to be stating to the jury a matter of that sort when the star routes are con- tinually changing, when hundreds and hundreds of miles of service are taken out of the star service and become railroad service ? Therefore, as between one contract term and another contract term, there can be no possible similarity. I wish to know whether that is a proper mat- ter to be stated to the jury. If the court thinks it is, all right. And I wish to know, in addition to that, whether or not it is proper to com- pare the expenses of routes, because if it is, then we want to have the privilege of stating to the jury the exact facts in regard to these cases. Now, if it is proper to go into this wide range and to cover the whole country we want to know it. If the court says that I may go on The COURT. [Interposing.] Do you make an objection ? Mr. WILSON. I renew the objection made by Mr. Chandler that the counsel is not confining himself to the case that is made by this indict- ment. I make the objection because he is making a statement that can have no other effect or purpose than to mislead this jury. 1 make that objection now, if your honor please, so that when we < ome to re- ply to that there may be no objection to the reply. And I make it, if your honor please, for this reason : That while I was following right in. the track of this same gentleman at the last term of the court I was re- peatedly interrupted because I was not keeping myself within the limits of the case. Now, I do not propose hereafter that that kind of objec- tion shall be urged against my associate who will open this case, so far as General Brady is concerned, without having laid the necessary founda- tion for overturning that objection when it is made. The COURT. The court ovei rules your objection, but at the same time does not declare its opinion in regard to the competency of the evidence, for the simple reason that that is a question which the court \\ill de- termine in its proper place. The Government thinks that that kind of evidence to which counsel is engaged in referring is competent to sus- 68 tain the issue on its behalf, the court an an objection to that kind of evidence made in the opening will not rule on the question of evidence at all, but will allow the counsel to open in his own way. Mr. DAVIDGE. That ruling is for both sides'? The COURT. I would have no objection to answering that question anywhere but here, but here I reserve the decision of all questions un- til the proper time comes. Mr. WILSON. Now, I entirely agree with the court, but The COURT. [Interposing.] If you agree with the court let us have no argument about it. Mr. WILSON. Just one word, I beg your honor : If this were a case of larceny and the defendants were accused of stealing a horse and the prosecuting attorney should get up here and talk about stealing a steamship or committing piracy upon the high seas, you would not hesitate for a moment to stop him ? The COURT. I cannot answer that. I am not going to answer ques- tions, except when they arise. Mr. WILSON. I know your honor will give us just as wide range as you give them. Mr. BLISS. Your honor, if I considered it consistent with my own self-respect to make personal charges of misrepresentation as broadly as the counsel does, I should claim to refer your honor to the record of the last trial as showing that the gentleman misstates what occurred when he was opening. Mr. WILSON. Well, I should refer to the record to show that I have not misstated it. Mr. BLISS. I have been reading it, sir. I have read it at recess, and I have read it since I sat here. The COURT. Go on in your own way, and unless you commit some very great Mr. BLISS. [Interposing.] I will do so. I certainty shall do nothing that I do not think proper. I am going to meet squarely the objection of Mr. Wilson about the railway service. He argued it on the last trial. I propose to show the condition of things. Now, I stated that the expense of the star service had been reduced from $7,260,832 to $4,486,755. One million seven hundred and seventy- eight thousand dollars of that saving was made by revoking the extrav- agant orders of Thomas J. Brady and his chief clerk. The cost per mile of the star service on the 1st of January, 1881, under Thomas J. Brady was $ i 6.99. The cost on the 1st of July, 1882, after Brady went out of office, was $8.62 per mile. The star-route service west of the Mississippi River cost on the 1st of January, 1881, $2,844.165. On the 1st of Jan- uary, 1882, it cost only $1,125,419. Between June 30, 1881, and July 1, 1882, there was a reduction of $2,001,189 of the cost, being 79J per cent. The cost per mile was reduced until to-day it is but $7.82 per mile against $16.99 under Mr. Brady. On the 1st of July, 1882, new contracts went into operation in all the Pacific section. Under those contracts, gentlemen of the jury, the en- tire Territory of Dakota, with all its increased service, is supplied with the mails for $9,500 only in excess of the amount which Brady gave to a single route in that Territory. The entire Territory of Wyoming is supplied with mails at one-half the amount of money which Brady wasted upon a single route in that Territory. It is claimed here you have just heard it claimed that a saving in the star-route service was made because the railroads had come in and taken up the star-route service and rendered that service unnecessary. 69 Now, gentlemen, ill the Pacific section, west of the Mississippi, and ex- cluding the States of Missouri, Iowa, Arkansas, and Minnesota there has been saved on the star routes $1,991,000. There has been added to the railway service in that region, even including the four omitted States, only $294,513, and yet you are asked to believe that the reduction of the star-route service since Mr. Brady went out of office has been accomplished not by legitimate economy, but by transferring the expense from the star-route service to the railroad service. There has been $1,990,000 saved in the Pacific section. There has been an addition to the railway mail- service of only $294,513 in the Pacific section. Under the new contracts, which took effect Julyl, 1882, I propose to give you a few figures, confining them to cases where the number of trips per week is the same, where the distance is the same, and where the number of hours is the same, and let us see what Mr. Brady paid, and what is paid under open competition. On one route he paid $28,600. They now pay $11,700. On another route he paid $34,200. They now pay $8,900. On another route he paid $5,707. They now pay $2,283. On another route he paid $5,824. They now pay $1,790. On another route he paid $16,770.16. They now pay $5,620. On another route he paid $17,569.89. They now pay $8,900. On another route he paid $11,752.85. They now pay $4,630. On another route Brady paid $5,280. They now pay $2,620. On an- other route, the J ulian to Colton route referred to in this indictment, Mr. Brady carried the amount up to $8,910. That is the route, gentle- men, on which, if I recollect aright, he made the increase for twenty- six hours when they only asked for thirty-six. I think that is the route. At any rate he paid $8,910. The route is now run in the same time,, the same number of trips, and in every way the same for $3,488. I am wrong. On that route the time is a little longer. The time under Mr. Brady was twenty-six hours. The time now is thirty hours. On all the other routes that I have read to you, the time, the number of trips and everything is the same, differing only in the amount taken from the Treasury. On another route Mr. Brady paid $19,359.99. Public com- petition gets it done for the Government for $8,700. On another route Brady paid $36,284.33. Public competition gets it done for $21,000. On the route from Eawlius to Meeker, under the old contract as in- creased by Brady, the amount was $31,981.25. On that route, as the amount was reduced after Mr. Brady went out of office by his suc- cessor, the sum allowed was $5,100. On public competition the con- tract was awarded at $7,320, being $2,400 less than Mr. Brady paid, but $2,100 more than was allowed b}~ his successor. On the route from Pueblo to Greenhorn Mr. Brady paid $3,945. His successor cut it down to $1,315.20. There is now paid, after public competition, $960. In these cases, gentlemen, there has been acliarfge in time or trips, or both. On the route from Trinidad to Madison Mr. Brady paid $4,290. It was reduced by his successor to $1,014, and on public competition it was let at $960. On the route from Saguache to Barnum Mr. Brady paid $7,166.40. It was reduced by his successor to $1,454.55. Public competi- tion got it done for $920. On the route from Gardner to Kosita Mr. Brady paid $3,926.67. His successor reduced it to $1,916.33, and public competition got it at $1,468. I could go on and give you more of those routes; but the general re- sult is this, gentlemen, and, I think, we shall show it to you beyond all question, that the extravagant amounts that Mr. Brady allowed having been reduced by his successor to the point which he thought was fair 70 and reasonable,- when they came afterwards to be submitted to public bidding, the routes were let at somewhere near about 18 per cent, less than the amount to which Mr. Brady's successor reduced it, and they were let at not over one-sixth of the amount Brady paid. Mr. DAVIDGE. Were they new contracts'? Mr. BLISS. They were new contracts made alter public advertisement, to take effect after the 1st of July, 1882. Mr. DAVIDGE. I did not hear you state that. , Mr. BLISS. I did state it. Mr. HENKLE. Do you mean to say they were for the same service? Mr. BLISS. I stated expressly that as to these routes I last mentioned there was a difference in time and in trips. But I was about to go on to say as an additional fact that while there had been the reduction of time and trips on various of these routes you will search the Post-Office records in vain to find half a dozen complaints coming from the localities affected. The present service is entirely adequate. Mr. DAVIDGE. Who is at the head of the present service "I Mr. BLISS. Richard A. Elmer, who was put there by Thomas L. James, and was there during all these reductions after Mr. Brady was requested to resign. Mr. DAVIDGE. Well, you have made a very good defense for him. Mr. BLISS. Precisely. Mr. DAVIDGE. Has anybody ever charged him with anything ? Mr. BLISS. I do not know whether they have or not. With the ability which counsel have to throw out insinuations against everybody 1 do not know but what they have done it against him. Mr. DAVIDG?E. You need not defend him until w r e attack him. Mr. BLISS. I have not defended him. You are mistaken if you sup- pose it to be a defense of him. It is a showing up of your client, Thomas J. Brady. Mr. DAVIDGE. By contracts made four years afterwards. Mr. BLISS. If you choose to say so. Now, thirteen of these routes in the indictment, which, under Mr. Brady, had been carried up to $219,886.46 a year were reduced under the administration of Mr. James and Mr. Elmer to $32,603.88, and at the recent letting they were let at $31,012, being about $1,500 less than the amount to which Mr. James and Mr. Elmer reduced them, and be- ing about $180,000 less than the amount that Mr. Brady paid. He paid $218,000 for what at the public bidding was let at $31,'000. Mr. HENKLE. Was that the same service ? Mr. BLISS. I have said distinctly it was not the same service. The routes were let for the number of trips and the rate of speed which the service called for, and that is all that ever should be done. On route No. 38156, from Silverton to Parrott City, the time, trips, and distance are identical. Mr. Brady paid $14,870.01, and at the recent letting it was let for $4,240. On ten routes, where, so far as I can ascertain, the service is substantially identical, Mr. Brady paid $174,369.31, and that service has recently been let at $73,880. Now, gentlemen of the jury, I think I have given you a sufficient dose of figures for the present. I desire to pause for a moment and survey the ground we have gone over. If we presented to you no other evidence than that to which I have now referred we should have shown to you that the practice of expedition was resorted to by Mr. Brady in excessive and unnecessary instances ; that he made allowances for ex- pedition and increase of pay to the very limit nominally allowed by the law when it was utterly unnecessary and unfair to do so ; that he al- 71 lowed expeditions solely on the statements of the parties to be affected by them, and that those parties were allowed practically to say how much they would take from the Treasury of the United States ; that he allowed expeditions upon affidavits where the records show there were contradicting affidavits by the same parties on file before him ; that he allowed them on affidavits which showed such absurd results as that they assume that one horse could only travel two miles a day ; that he allowed excessive sums even if he took the affidavits of the persons who made them; that he acted upon affidavits which were false; that he disregarded the law as to productiveness ; that he paid large sums of money for expedition where nothing was gained ; that he paid large sums for expedition and increase of trips where neither expedition nor in- crease of trips were needed ; that he ordered impossible expedition ; that he paid twice for the same service ; that he made petty orders, adding to the money to be taken from the treasury whenthefacts upon which they were alleged to be based were untrue, alleging that there was an addition of distance Avhen there was nothing of the kind, and similar cases ; that he neglected to declare these parties failing contractors, and granted them the liberty to continue, leaving the service to be provided lor by the Government in other ways until they got ready with their petitions and names for expedition, so as to make their losing contracts winning contracts ; that he acted upon false petitions, petitions which upon their face were false, and petitions which did not even answer his al- leged purpose of being a cover or protection for himself. We shall un- dertake, however, gentlemen, to show to you much more than this. We shall place before you a gentleman not a willing witness for the Government, but a witness whose testimony will have to be drawn from him, who will testify, we think, to substantially this condition of things : that he having made advances to parties concerned in the postal serv- ice, and those parties having failed to carry out their contracts, for the purpose of protecting himself and saving the advances which he had already made, became a contractor upon a route under an order made by Mr. Brady ; that that relation brought him into connection with Mr. Brady, and that thereupon Mr. Brady, at various times, received from hirn loans of money under such circumstances that his evidence in that respect can be entirely corroborated; that after a time this gentleman being sub- stantially broken up by his experience with the mail service, he called upon Mr. Brady for a settlement and a repayment of the money advanced, and that Mr. Brady refused to pay it, saying to him that that money was simply bribes which he had paid to him for favors which he alleged he had given him in connection with his mail service, and telling him also that he haddoneno more than all other con tractors did; that they all had to pay him ; that he did not suppose that the witness believed that he, Brady, made these orders for the fun of the thing; that he made them for the solid reason of getting an interest and percentage for making them, and that when this witness referred to his supposition that he made them on the basis of petitions which were filed, Mr. Brady scat- tered the idea to the winds, and told him he ought to know better than that. Said he, " You understand there were petitions filed in your be- half, but I did not pay any attention to them. They had no effect upon me. They were simply a cover giving me something to protect me in doing this thing." I have stated briefly the evidence of a witness who I feel confident will satisfy you that he 'is telling the truth. He can be supported in the statements by various corroborative evidence. He is not a swift witness in the service of the Government, but a man whom we can bring here under subpnsible, first, that the bidder will enter into the formal contract with the Government, and second, that the bidder having entered into the formal contract with the Government, will carry it out faithfully during the four years of its term. It is a bid which, therefore, imposes heavy responsibility upon the sureties, or may impose heavy responsibility upon the sureties, and which, when parties are going into the business of putting in bids for, say a thou- sand routes, imposes a very heavy liability upon the sureties, and if they are furnished in good faith and in accordance with the spirit of the law, certainly makes it a very difficult thing for parties situated in that way to get adequate bonds, because the amount becomes enormous. It is a provision, I may say in passing, which seems to me a foolish and unnecessary provision in so far as it extends the liability of a surety on a bid beyond the time when the formal contract has been entered into. 79 But it is the law. ^N"ow, the Post-Office Department, anxious to get the bids all right, places upon the forms of proposals which it issues a provision of this kind : Sureties are liable during the whole of the contract ter,m. Postmasters will ob- serve that tlie improper approval of the bond or the certificate of the sufficiency of the sureties thereon exposes them not only to dismissal, but to fine and imprisonment. Certificates must not l>e signed until the proposal is complete and a bond signed. Postmasters must not divulge the amount of any proposal certified by them under penalty of removal. Mr. Boone went to the firm of Darby & Duval, in this city, early in December, 1877, after he had been employed by Dorsey, and he ordered a large quantity of these proposals printed, and he directed to be left off of these proposals the clause I have read to you, the directions of the Post Office Department placed upon them as to the way in which the bonds were to be executed and the cautions to the postmas- ters that they must not certify to any bond until executed by the parties. And, gentlemen of tlie jury, you will see very clearly the importance of that, because if a surety is to become responsible for somebody, if he acknowledges it in a blank bond, the moment the name is inserted after that it is an altered bond and he gets a defense. If the name or amount is not there on the bond he becomes responsible for something he knows nothing of ; he has become responsible for a contract on a route he knows nothing of, and at any rate the changing of it makes an alteration in the bond and discharges the surety. ^Now, in that condition of things, having got these bids and bonds printed, various postmasters in the State of Arkansas received early in Decem- ber, 1877, and in January, 1878, large packages of these bonds and bids sent to them in blank with directions or with the request to obtain sureties upon the bonds and to have them signed. Those bids and bonds thus in blank were sent to several of these postmasters by Ste- phen W. Dorsey with letters desiring that they should be executed. They were postmasters whom Mr. Dorsey had been influential in secur- ing the appointment of to office. They were sent with letters request- ing to have sureties secured and to fill up the bonds and return to him, and emphasizing the statement of the letter that they must, under no cir- cumstances, let anybody know that these papers came from him ; that his connection with the case must be kept entirely secret. Such bonds as that were sent to various postmasters, whom he obviously thought he could rely upon. But human nature was better than he thought, and various of these postmasters either disregarded his requests and passed them by in silence or remonstrated with him. Among others was a postmaster at Fort Smith, Mr. Cleudenning, who wrote Mr. Dor- sey, calling his attention to the fact that it could not be that he remem- bered the provisions of law and that he desired him to go on and do this thing which he had requested in view of the law, and in requesting it, let me say, he had sent in his own handwriting little pieces of paper giving directions in detail how the whole thing was to be done ; what was to be written in by the sureties and everything of that sort, and all these bids that he sent there were absolute blanks. He requested them to be filled up by the sureties in direct violation of law, and in that connection it is significant that this direction from the Post- Office Department to the postmasters that they must not fill up a bond unless the bid attached to it was completed was omitted on the form of blanks which Dorsey sent out. The postmaster at Fort Smith, among others, remonstrated and declined to comply with Mr. Dorsey's request, and it led to a rather animated correspondence. We shall put that cor- 80 respondence before you, gentlemen. We shall put before you the orig- inal paper sent by Mr. Dorsey. We shall put the postmaster before you, and he will show you the whole condition of that matter. As to all this, gentlemen, bear in mind the statute which forbade a Senator to be interested in any contract. Mr. Dorsey was careful to say that he was acting for a friend ; that he was doing a friend a kind- ness, and had no interest in it ; but he was very particular that nobody should even know he was doing that friend a kindness. He was not going to let his right hand know what his left hand was doing. These bids having been prepared in Dorsey's house, we find this condition of things. Save in the single State of Kansas, Mr. Peck, John W. Dorsey, and Miner never in bidding, 1 think there may be exceptional instances came in conflict with each other. They put in in the aggregate a thou- sand or more bids. Any two of them never bid upon the' same route. There may be, and I think there are, one or two exceptional cases where there apparently is a reason for it; but that is the rule. So that they did not come into conflict with each other, and there is no question upon that. They got under those bids one hundred and thirty-four contracts. The contracts took effect on the 1st of July, 1878. Mr. Stephen W. Dorsey will be shown to you as constantly interested, constantly intervening on behalf of these parties, and of course the claim, I presume, will be made that he was doing a brotherly act merely, but as soon as Mr. Dorsey went out of the Senate, on the 4th of March, 1879, within, I think, less than thirty days after that time, Mr. Stephen W. Dorsey appears publicly as interested in all or a certain portion of these contracts which had been obtained. I called your attention to the fact, gentlemen, that in bidding for these contracts they bid only on the routes, as a general thing, which were of slow time, \\here expedition could be obtained, or where the service was infrequent one, two, or three trips a W eek where an increase of trips could be obtained. In passing let me say that Mr. Vaile, whenever he did come into the conspiracy, probably as early as July, 1878, seems to have protected himself in a measure by taking a large number of subcontracts, and so far as the files of the department show, he appears as being as early as that the subcontractor on some fifty or sixty of the one hundred and thirty-four routes which these parties obtained, beinc: the subcontractor of record, but not necessarily or generally the subcontractor who was performing the service, but his subcontract was filed with the effect certainly ot protecting the subcontractor who was performing the service from hav- ing any recognition from the Government, or the terms of a real sub- contract from ever becoming known to the Government. I have said that these contracts were obtained, and that Stephen W. Dorsey became openly interested in them as early as April, 1879. At some time after that there seems to have been in form or in fact some- thing in the nature of a division. They seem to have cut up their routes in a measure. Miner seems to have taken certain routes, Stephen W. Dorsey seems to have taken certain routes, and Peck seems to have taken certain routes, but they also seem to have at once u pooled their issues " in a measure. Miner and Vaile certainly acted from that time together in all matters, and the parties continued apparently to take an active interest even in the routes which had been in form assigned to one of the others, and Mr. Brady recognized their authority so to do. For instance, on the route from Pueblo to Kosita, Mr. John W. Dorsey nominally stating himself to be the subcontractor, made the affidavit upon which the expedition was obtained. He was not subcon- tractor, he was not contractor. He was not in any manner connected 81 with the route except as a fellow member of the conspiracy, a coconspir- atpr ; knowledge of that was not a knowledge of course of record at the Post-Office, but was a knowledge which was obtained of an illegitimate relation, and yet the position was recognized by Brady as sufficient to enable him to make the affidavit which the regulation, which is a law, required to be made by the contractor, and he recognized John W. Dorsey's authority to make it upon that route. On the route from Trinidad to Madison, Mr. John W. Dorsey did precisely the same thing, and yet had no relation to it. Miner was the contractor, and Stephen W. Dorsey was the subcontractor by a contract not then filed, but John W. Dorsey was the man who was recognized by Mr. Brady as being sufficient to make the affidavit on which the expedition was based. On route 38145, from Ojo Caliente to Parrott City, John it. Miner writes a letter, which he says he does at the request of Stephen W. Dorsey, then in the Senate. He makes the request in consequence of the absence of John W. Dorsey, who was out in the Territories in connec- tion with some of these other routes. Miner wrote at the request of Stephen W. Dorsey, and on behalf of John W. Dorsey, to a personal friend and acquaintance of Stephen's to take the subcontract, and carry the mail upon that route. Ou the route from Yermillion to Sioux Falls Mr. Harvey M. Yaile makes the affidavit, though he was not the contractor. He was the nomi- nal subcontractor, so far as the records of the department show, while in point of fact the service was being performed by an entire I y different person, whom we shall place before you. On the route from Eugene City to Bridge Creek John M. Peck was the contractor, and yet Mr. Stephen W. Dorsey appears in connection with that route in a somewhat manifold capacity, which I will not stop here to detail to you. On the route from Mineral Park to Pioche Mr. John W. Dorsey was the contractor. Mr. John M. Peck, in a letter written by John R. Miner, requests the Post-Office Department to authorize him to sublet that contract. Under the law no contract can be sublet without the con- sent of the Post-Office Department. John W. Dorsey being the con- tractor, John M. Peck, a man who, on the record, certainly had no con- nection with the route, writes to Brady asking permission to sublet that contract. Mr. Brady authorizes him to sublet the contract and recognizes the contract which was made in pursuance of that provision. And yet Peck, in whose name the letter was written, and Miner, who wrote it, were equally strangers, so far as the Post-Office Department knew, to the contract, and had no relation to it. They had a series of firms and they were as miscellaneous as possible. There was Miner, Peck & Co. ; there was Miner, Vaile & Co. ; there was Miner, Dorsey & Co. ; there was J. W. Dorsey & Co., and the u babies were interchanged" generally. There was no danger of their getting lost, however, because the parties were all mutually interested. Subsequent to that time, and at various periods as we go along, you will find Mr. Stephen W. Dorsey en- gaged in getting up petitions, writing to his old triends, and calling upon them to help him in getting up petitions and in writing letters to aid in advancing these contracts and the interests of these contractors. He did so at first with an entire concealment of his own interest in the matter. But after he ceased to be United States Senator, and the statute upon that subject ceased to apply to him, he threw off the mask, and did the business more openly if not more generally. We think we shall be able to show you, gentlemen, from tLeseaml other facts which I will not stop to repeat, that all t'nese parties were inter- 6 G B 82 ested in those routes, and that they continued interested in the routes after the nominal division; but whether they did or did not continue their actual interest is a matter of very little importance, if they entered into the conspiracy and got from the Government certain contracts which were their capital in business, which they were going to use in defrauding the Government. It made very little difference whether they took their profits by taking a portion of the joint profits of all of the routes or whether they divided, so to speak, their capital, and each one took all the profits on a particular block of the route. The loss to the Government was the same, the fraud and injury was the same. This being the relation of these parties to the conspiracy we then find the actors all placed ready to perform their parts, and the question is now what in detail did they do so far as concerns the different routes? Therefore, gentlemen, 1 propose very briefly to take up the evidence which we shall submit to you in connection with each one of the routes named in this indictment. On route 34149, from Kearney to Kent, the contract was let basing it on the advertisement as a hundred and twenty-five miles, for service once a week. John M. Peck became the contractor at $808 a year. On the 24th of September, 1878, there, was made one of those little ad- ditions of a town called Fitzalon, which was alleged to add fifteen miles, more or less, to the route. That matter is a little complicated, arising from a change of the route. We claim that the order was entirely un- authorized. Primarily a small sum of a hundred and odd dollars re- sulted as an emolument to the contractor, but after it was counted in the problem in connection with expedition the amount was added to very greatly. On the 10th of July, 1879, a year after the contract was let, two trips were added over a portion of the route, that from Kearney to Loup City. In consequence of the addition of those two trips there was added to the original pay of $868, $1,122.41. At the same time that the three trips were added the time was reduced to thirteen hours, and there was added in consequence of that $2,200 to the contractor's pay. That carried the whole amount up to $4,302.05. The post-offices on that route produced an average of $o94 to the Government. The ter- minal post-offices were situated upon railroads running east and west, and the receipts of Kearney are not counted in this statement, as they came from mail carried on the railroad. 1 have already called your attention to the fact that the mail-matter, after it got out a few miles on the route, amounted only to twenty or thirty pounds. Now, on that route where they got originally $808, one French became the subcon- tractor at $700. So that at the outset Peck, who was the nominal contractor, had a profit of $108. When the contract was increased in July, 1879, to three trips French received $1,587.40 in all, and did all the service, and Peck received $2,715.08, and did no service. Mr. French will be on the stand before you, and will testify as to the proper amount to be allowed for the service and the condition of things there. Mr. French made a contract, and we shall produce to you the letters pass- ing between him and John W. Dorsey in connection with that contract in which there was a stipulation that he was to have 05 per cent, of the amount allowed for expedition. When expedition came for which $2.200 was allowed Mr. French received no portion of that sum, though he knew that the schedule had been changed. It had been changed so little that it made little, if any, difference in the time which he took in going over the route. He was already going over the route in about the expe- dited time. They corresponded with him and Miner, Peck & Co. re- mitted him his quarterly pay? and left him in entire ignorance that 83 there had been any payment by the department for expedition, although he was entitled to 65 per cent, of the $2,200. Mr. French jogged over that route with his horses day in and day out, and performed all the service that was ever performed ; earned all the money that was ever eamed and never learned that the department was paying $2,200 for expedited time which he, if anybody, was making, but which, in point of fact, did not change the time made to any serious extent, until after this investigation was set on foot, when a post-office inspector going out on his route conveyed, by accident, to Mr. French the first knowledge that he had that there had ever been any expedition, and that he was enti- tled to the 65 per cent, of $2,200 under his contract. Now that was simply a private fraud upon Mr. French of which you cannot take any cogni- zance. I only mention it in connection with this route as showing the conduct of these parties, and showing how unnecessary it was to pay money for expedition when the man who rendered the service was to get none of it. That, gentlemen of the jury, is the same route on which the other branch of fraud took place, to which I referred, Mr. Peck having as early as February, and away out in Xew Mexico, found out by some intuition that Mr. Brady was going to want to know just how many horses would be required to make that service in thirteen hours. So he made his affidavit in February to that effect, and there was never any petition or paper of any kind on file asking for thirteen hours, excepting the altered petition into which thirteen hours was boldly inserted in a different handwriting after it was received hereby John K. Miner. I think we shall be able to show by whom it was inserted. That was the route on which the forged petition was. That forged pe- tition was the only paper, and it was used as the basis of an order for expedition which took $2,200 a year out of the Treasury to pay not to the man who rendered the service, but to the men who sat here in Wash- ington and did nothing. Route 38135, from Saint Charles to Greenhorn, was originally let as thirty-five miles long, at a schedule time of twelve and a half hours. In. point of fact the distance from Saint Charles to Greenhorn was only twenty- three miles. It ought originally to have been advertised as from Pueblo to Greenhorn, because Saint Charles was merely a water-tank. There was no village there at all. The tank was three or four miles from the traveled road and on the railroad. At that water-tank the trains did not generally stop. The advertisement was persisted in by Brady r though his attention was called to it before the contract was let and though a post-office inspector reported upon the subject to him. The dis- tance, as I said, to Saint Charles was only twenty-three miles. By and by Mr. Brady proceeded to increase the route by extending it from Saint Charles to Pueblo. This added twelve miles, and made it, in point of fact, thirty-five miles, which was just as advertised, but Mr. Brady treated it as a lengthening of the route and allowed for that twelve miles an addi- tional compensation of $328.80. My friend has drawn here substantially a sketch of the route. [Exhibiting sketch to jury.| The contract was let on that route at $548 a year. When Brady extended it from Saint Charles to Pueblo he added $328.80 to it so as to make the con- tract price $808, or a little over that. At the very time that he ordered the additional pay there was on file in the department a tem- porary contract made by the postmaster out there for carrying the mail over the whole route for $612. So that Mr. Brady paid $868 while there was on file the contract of the subcontractor showing that he was willing to perform the service over the whole route for $612, and also showing that the amount which Mr. Brady allowed for the added twelve miles 84 $320 was greatly in excess of the amount which the subcontractor was actually getting for it, and that by a temporary contract made by his own postmaster. You will bear in mind that when anybody enters into such a temporary contract with the Post-Office Department they must necessaril}' expect to be paid more than a man does who enters into a contract to carry the mail for four years, because the temporary contract can be terminated at any time, subjecting the contractor to a loss. Now. the service having been carried by Brady up to $868 a year, of which the subcontractor got $612, it was increased by Brady on the 14th of July, 1870, one year after the contract went into effect, to $3, 945. CO. The supposititious twelve miles between Saint Charles and Pueblo, which did not extend the advertised length of the route, and for which $320 was paid, was made, when it came to expedition, to take from the Treasury $1,479.00 a year, being nearly three times the amount of the original contract for the whole route. That contract continued in force in those terms, except that the route was at one time run up to $4,314.50, during the entire time that Thomas J. Brady was Second Assistant Postmaster-General. If he had spent the money in giving to that route a daily service instead of this pretended expedited time he could have given daily service to all the people upon the route, although they did not need it much more than they needed the expedited time, for a con- siderable less amount of money than he chose to waste upon these con- tractors for performing the service three times a week upon that alleged expedited time. That expedition was obtained on the affidavit of John E. Miner, who swore on the 7th of April, 1879, that on the then exist- ing schedule it took one man and two horses to perform the service and that when it was reduced to the time to which Mr. Brady reduced it, it would take four men and seven horses. In point of fact it took only one man and two horses to perform the original schedule, and in point of fact it took only one man and two horses to perform the increased service for which Mr. Brady paid two or three thousand dollars a year, and it took the same man and the same horses all the time. There was no change whatever. There was 110 authority under the law to pay a dollar out of the Treasury unless there was an increase of men and horses, yet we shall place before you the man who was performing that service and driving the horses, and he will testify that there was no ad- dition to the stock or carriers in consequence of the expedition. There- fore the order of Mr. Brady for the benefit of these defendants was clearly illegal. There was a little steal on that route to which I may just as well call your attention in passing. I think I said something about it before. They added the town of Agate, which was on a little spur, and they allowed $369.90 a year for it. Not one pound of mail ever went to Agate. The carrier never wei / % J /.;^ Mr. BLISS. [Interposing.] ,1 will give you gentlemen a chance to tell the jury anything you want to. I say that was one of the vouchers on which Mr. Brady acted. I do not say it was the only voucher on which he acted. Mr. WILSON. It was put on file after he made the order. Mr. HENKLB. You want to tell the whole truth, do you not ? Mr. BLISS. I think I shall state it truly. -It was not on file when some of the orders were made. It was on tile before others of them were made, if I am not incorrect in my recollection. The evidence will show. I think it was on file, but even if it was not it does not help Judge Henkle's client any. If he put an unnecessary forgery on the files of "the Post-Office Department did he do it because he was in the daily habit of so doing, or why? He put it there for some reason. It may have been intended as an ex post facto voucher. I do not care what it was. It was a square, bold, bare-faced forgery either to get money out of the Treasury or to back up the act of Thomas J. ISrady in having already ordered money to be taken out of the Treasury. Twenty-eight thousand six hundred and sixty-six dollars of that $50,000 was ordered to be paid out after the petition was filed. That is the route, gentlemen of the jury, in which we have the transaction with the postmaster at Alvord. Mr. Miner wrote to his agent out there, Mr. Williamson, "I find that Mr. S. H. Abbott, postmaster at Alvord, is writing here, saying you do not need any weekly mail. Go and buy him up. Shut him up. Get rid of him. We cannot afford this sort of thing." That is the meaning of the letter, as we shall ask you to infer. John E. Miner knew that Mr. Abbott was writing to the department. John R. Miner had so written to Mr. Williamson. That letter, when we came to make an investigation after Mr. Brady had gone out of office, had disappeared from the files of the department, and there is no evidence on file there that it ever existed. We have only the word of John R. Miner that it ever did exist there. But this is one of the rare cases when we shall ask you to take the word of Mr. Miner. Mr. Williamson was told to go and shut the mouth of that man by paying him, and Mr. Williamson performed that duty, paid the money, and took a voucher for his pay- ment. We shall have the pleasure of showing to you something about that. Mr. HENKLE. That will be explained. Mr. MERRICK. You cannot explain it. Mr. BLISS. You cannot explain it. You bought the man off once for complaining of you because you had not run the mail, and he had at least to have a mail in which to put his quarterly report. He had to travel way up to Canon City to get his quarterly report in the mail, and he complained to the department that it was pretty bad to have no mail but still worse to have to travel twenty-five or thirty miles at his own expense to put his quarterly report in the mail, and so they paid him for his expenses in doing that thing. It was that transaction that encouraged them to think they could go to work on the other one. They did it and carried it out faithfully. That was one of the cases where they paid right up. Route 44155, from The Dalles to Baker City, was let as 275 miles on a schedule of 120 hours, or five days, and two trips a week. John M. Peck was the contractor, and he was to get from the Government $8,288. Lock-box 714 was to be used as in the other cases. Service was not begun until the 2d of September, 1878, though the contract required 102 them to eoi>;i'U4}C'3 or- the 1st of July, 1878. Indian difficulties 011 a portion of Hie vcute it is claimed existed. The service having been com- menced on the 2d of September, 1878, on v the 1st of October Mr. Vaile put his subcontract on file, and before the month of October had run out petitions began to come in, and in less than two months after the service was commenced it was increased by adding one trip and the time was reduced from 120 hours, or five days, to seventy-two hours, or three days. The result was that the pay was run up from $8,288 to $31,080. On that route there was a little liberality in the sense that Brady's allowance was less than pro rata. If you believe the oath of the con- tractor, then Mr. Brady allowed less than pro rata, and instead of car- rying up the route $31,080, as he did, adding the expedited pay to the original pay, he could, under the oath, have carried it up to some sixty odd thousand dollars, I think. That, however, was a little oversight, and it was, as I recollect, corrected, for at a later period in the progress of the contract it was carried up> if I am right, to $72,520. Later than that there came off $10,360 for the reduction of a single trip. The fact is, that in the spring of 1880 Mr. Brady directed one trip to be taken off from all the star routes in the country which were over one trip a week, and these contractors sent out a circular calling attention to it and saying that Congress having failed to make the extra ap- propriation asked, Mr. Brady, for the purpose of bringing the expend- itures for the fiscal year ending the 30th of June within the amount of the appropriation, was compelled to cut off one trip all around. "We give you this notice, and we advise you to write to your member of Congress and others." Brady estimated for $2,000,000 for the expense of the star- route service for that year. Congress gave him every dollar he esti- mated for, and yet he found himself obliged to go to Congress in the December following the summer of his estimate and ask for $2,000,000 more, and when Congress hesitated to do it, and set on foot an investi- gation which seems to me to have gone just up to the verge of discover- ing these frauds and then to have stopped, Mr. Brady ordered one trip a week cut off from all the star-route service of the country. These contractors accompanied that notice with the intimation to everybody concerned in transporting the mail that they should bring pressure to bear upon their Congressmen to make the appropriation and restore the service. Mr. Brady, when he cut off one trip a week from all the star- route service of the country, which reduction was rendered necessary by his fraudulent extravagance, put into his order not only a direction that every contractor was to have a month's extra pay on all that service just dispensed with, but they received this thirty days' pay for service which they did not perform, and which Brady told them they could not perform, because having estimated for $2,000,000 he had spent $4,000,000. Mr. HENKLE. Was not that the law ? Mr. BLISS. It was the law to give the month's extra pay. I grant you that. It was not the law for Mr. Brady to estimate for"$2,000,000, run it up to $4,000,000 by these fraudulent orders such as I have called to your attention, and then intimate to the contractors to bring pressure upon Congress to get his extravagant appropriations and thus enable you gentlemen to come in here and undertake to say that Congress has condoned your offense. Now on that route the extra pay to the con- tractor for the month amounted to several thousand dollars, as I rec- ollect it. Having been cut off in April, this trip was on the 16th of July restored. Brady had got in the mean time from Congress $1,250,000, and he had also, which was of more importance, got into 103 > a new fiscal year with a new star- route appropriation to operate upon for the whole country. Therefore he restored this trip, and the result was that the contractors were at .most without the one trip for two months and they got pay for it for one of those months. Mr. Rerdell, I think it is, for he was a voluminous correspondent, suggests to the contractors, in one of the letters we shall produce to you, that it will probably be a beneficial thing for them to have the trip taken off for a month because they can fatten up their stock arid get them in better condition. On the Ifcth of September, 1879, going back a little, Peck swore it would take on the existing schedule eight men and ten horses to perform the service on that route. It was 270 miles long and they had to go over it each way twice in a week. They had therefore to travel 540 miles in a week. Mr. Brady accepted Mr. Peck's oath that to do that would take only ten horses. I will not say that ten horses could not have done it, but I do say that those ten horses would have to travel a good many times as many miles in a day as Mr. Brady said in his orders for expe- dition was a proper number of miles for a horse to travel. He said on one of the routes that two miles a day was all a horse ought to travel, or four miles in double team, and from two to six miles a day ; that was about all he allowed. But he accepts this statement of Mr. Peck of the number of miles these horses ought to travel. Mr. Peck also swore that to reduce the speed from 120 hours to seventy-two hours would carry up the men from eight to twenty, and the horses from ten to sixty- six. To go over that route in five days, twice each way, you need but ten horses. To go over that route twice each way, in three days, you need sixty-six horses. That is the statement of the oath. As to that route we have this peculiarity : There is Baker City [indicating on the map] and here is The Dalles [indicating] ; there was from Baker City another route passing up by Pendleton and down to The Dalles. Every pound of mail matter which came from the east bound to The Dalles, which is a large place in Oregon, went over this latter route even though it arrived at Baker City. It went from Baker City up around that way because it was quicker'and more certain than to go by the other route. Every pound of mail matter that went from The Dalles to Baker City or farther east went around. Although longer, the route could be traveled quicker and more certainly. The first station out of this route this side of Baker City is Auburn, and a letter at Auburn which was intended to goto The Dalles did not go over this route [indicating], but went the other way east, and then around, and came west to The Dalles. A letter from Auburn intended to go to the first station the other way from this end of the route went first east, then north, then west, and then south. Not only did not the matter from the terminal stations pass over the route north ; matter coming from beyond the terminal stations, but the matter which originated upon a portion of the route went around about out of its way to strike another route so as to get to its destination quicker and more certainly. That is the route which the facts show so clearly was not a through route. It was a route that produced $2,300 a year, and Brady ran it up to $72,520 a year. There were only three settle- ments on the entire 270 miles. Those settlements were all in one val- ley, within a compass of fifteen miles. They were all right in there [in- dicating on the map], in the valley known as John Day Valley, \\ 7 hich was a valley to which an alleged discovery of gold had brought a cer- tain number of people. In point of fact, gentlemen, though expedition was ordered in November, 1878, within two months after the service actually commenced, there was no expedition performed on that route 104 until November or December, 1879, and yet expedition was paid for all that time at the rate of $72,000 a year. If it had got up to $72,000 as early as that, it is possible that some of the increases did not begin so early. At any rate, expedition was paid for upon that route. I think we shall be able to show you that there ^ere some curious devices to get the evidence of a terminal postmaster that the mail had been carried when it had not been carried at all. A petition upon which that expedition was granted was interlined in a way to indicate that there has been applied to it some of the peculiar abilities which are shown to have existed in connection with other petitions on other routes. The route from Bismarck to Fort Keogh, 35051, was let at 250 miles long, on a schedule of eighty-four hours of time once a week. John E. Miner was the contractor. On the 2d of April, 1878, before the con- tract term commenced, when John E. Miner was the contractor, Stephen W. Dorsey, who was a Senator, writes to an engineer officer of the Northern Pacific Eailroad I think it was with reference to the length of the route and he gets a reply, which he places on file, showing that in point of fact the route was 303 miles, instead of 250 miles, long. On the 23d of December, 1878, three trips were added, and $4,700 allowed for those, being pro rata. Then the service was reduced from eighty- four hours to sixty-five hours, and $27,050 was allowed for that, making a total of $35,000 ; and on the 2d of August, 1879, three trips more were added, making $70,000 on a route where the original contract price was $2,350. Miner swore that three trips would take twelve men and thirteen animals on the then schedule ; that to reduce it to sixty- five hours from eighty-four twenty hours would require one hun- dred and fifty men and one hundred and fifty animals. Is not John E. Miner the champion swearer of the universe, gentlemen ? There is no pretense, there will not be any pretense, that that affidavit was cor- rect. It was sworn to by a man who never saw the route. In that respect, however, he is just like all the rest of these defendants. There is not an affidavit on file from any one of these defendants who, at the time he made the affidavit, ever had seen the route, as I am informed. Miner swore that it would take three hundred men and animals to per- form the service in sixty -five hours on a route in fact 303 miles long. It would, he said, take a man and an animal to every mile to perform that service. Now that statement was more than Brady could swallow. I am stating ik pretty strong, gentlemen, I know, When I say that. But it was more than he could swallow, and therefore in that case he did not make expedition up to the limit. He made expedition considerably below the limit. But you will remember, gentlemen, that in another portion of my opening I called your attention to the fact that there appeared on file proof of another affidavit of the same John E. Miner, in which he made a statement entirely different as to the number of men and animals which would be required, only about a third of what is stated in that affidavit, and though Mr. Brady could not swallow this second affidavit of Miner's and make the allowance up to the limit called for by it, he compromised things by making an allowance somewhat in excess of the first affidavit of Mr. Miner. Mr. HENKLE. How much ? Mr. BLISS. Somewhat in excess ; about $2,000 if I remember right ; and when anybody gets within $2,000 of Miner's figures he gets sur- prisingly near them. Now that affidavit of Miner's, gentlemen, was made within two months after he had been putting petitions into the Post-Office Department de- 105 Glaring that that route ran through trackless prairie, with 110 inhabitants, which was true 5 with no call for the mail, which was true, except that it was, as I ain going to show you presently, a route of growing impor- tance between two terminal stations, and where it had been claimed that he must have a company of soldiers to accompany every carrier over the route in order to carry the mail safely, and if his 150 men had actually been needed as mail carriers, he would have taken something like half the Army of the United States to accompany his mail-carriers over that route, if his affidavit had been true. That route, gentlemen, was the route on which Eerdell made the proposition to Pennell, the contractor, that when he got oat a hundred miles or so he should pretend that there was, thirty or forty or fifty miles north of it, a settlement, and that he should get up a petition and have it signed by his gang of workmen, and that in that way they should ask for mail service to connect with this route ; and that they should ask for the appointment of one of their number as postmaster at this supposititious place, on this supposititious route, and then they would get their arrangement made in Washington to carry their mail over this supposititious route they were going to make, and get an allowance for fifty or sixty or seventy miles. Mr. Pennell was too honest for them. He would not do it. He will come here and tell you the whole trans- action, and you will believe every word he says when you see him. That is the route, gentlemen, where they commenced by building a station every seventeen miles, and when asked by the contractor why they wanted stations every seventeen miles, they said that they were going to have an increase, and when they got an increase of trips and speed they would have to have stations every seventeen miles, which was true. But they were so certain that they were going to have it that they built those stations every seventeen miles, when, until they got the expedition, they used only every other station. They spent in building their stations, and for things other than the horses that were to run the route, $6,600, before there had been an order for expedition; before there had been any sign in the department that there was any call for expedition, when the Indians were going over that trackless prairie, according to their papers on file here ; and they spent $6,600 for these permanent improvements, while at their existing rate of pay- ment they were getting only $9,500 in the whole four years of their contract. That is the route, gentlemen, upon which John W. Dorsey proposed to Pennell to go into partnership with him, and told him that it was to be expedited, and told him that there would be two increases with- in a year; that one of them would be an increase up to $25,000, and it is the route, gentlemen, on which they got one increase within a year which was up to $33,000 instead of $25,000, and on which they got a second increase in thirteen months instead of within the year, which carried it up to $52,000. Now, gentlemen, that route, as I have said, was a route of consider- able and growing importance. The reason why their efforts to have it discontinued, on the ground that it belonged to the Indians and not to them, did not succeed, was that the inhabitants of Dakota, represented by their Delegate here, insisted upon it that there should be a mail route from Bismarck to Fort Keogh, which was a military post within the Ter- ritory of Dakota. There was, in that point of view, a justification of the existence of the route. There may have been, possibly, a justifica- tion of the increase of the number of trips to some extent. There never was any justification of the increase of speed and expedition. The very orders which Brady made refer to applications for increase corning from 106 officers of the Army, which officers did not ask for any increase of ex- pedition. They asked for increase of trips on the ground that they wanted constant communication with what we may call the outer world. They did not ask for increase of speed at all. Brady chose to take those petitions as a means of ordering increase of speed. That route was let at $2,350 for one trip. If he had made it seven trips a week he could have run it up to but $16,000. That was too paltry a thing for these gentlemen. They had to have orders for expedition and increase of speed that could give him any justification, even if he did not believe Miner's affidavit, in carrying the amount up to $50,000, and, therefore, he chose to pervert the letters of the officers of the Army asking for increase of trips into applications for increase of speed, and he will tell you, probably, that one of the noblest officers of the Army, Gen- eral Miles, whom it is one of the proudest recollections of my life that I have something to do with enabling him to get into that position in the lower grade of the military where he exhibited those capacities which made him a brigadier-general in the Eegular Army, passing from a simple clerk at the outbreak of the war in New England advised it. General Miles made an application for an increase of service. They trans- formed that into an application for increase of speed ; and a few others like that were used for authority for this expedition. Do not understand that there are not other papers there. There are other papers on file asking expedition. There is no question about that. You all know, and the court will take judicial notice of it, that you can get petitions anywhere for anything. Of course you can get petitions anywhere in the western territory from men who honestly and fairly, and from their point of view property, sign petitions asking that they should have a mail service every day in the week, twice a day if you choose, and that it should run ten miles an hour if you choose, for the simple reason that it is a convenience to them. It is not paid for by them. It is paid for by the general public, which means the public of the East; and they signed those petitions and sent them here because they believed, until the developments of this cause, that they had a Second Assistant Post- master-General who would look at the petitions and say, "This is the representation of one interested side urging its wishes and its views ; I am to judge of that judicially, with a view to the interests and demands of the entire country, and with a view to the amount which Congress has chosen to place at my disposal." Mr. HENKLE. Won't you tell the jury what General Sherman said about it ? Mr. BLISS. General Sherman never said a word in favor of expedi- tion, and, if I may refer to it, you heard and I heard General Sherman say that expedition was not necessary. Mr. MERRICK. [To Mr. Henkle.] Why do you not keep quiet ! Mr. HENKLE. I want you to tell the truth. Mr. BLISS. I am telling the truth right straight along. You are in the position of the sailor who said that what led him to prefer a par- ticular kind of religious service was because he had a chance to jaw back. Your time will come. The route from Vermillion to Sioux Falls, 35015, was let as fifty miles long and at fourteen hours time, trips once a week. It was really seventy- five miles. Mr. John W. Dorsey was the contractor, and $398 was the amount for which he undertook to perform the service. On the 1st of Au- gust, 1878, he made a contract with a Mr. Leach to perform that service for him, and he agreed to pay him $500 for it while he was only going to get $398. But then lie agreed that if it was put up to two trips, foreseeing 107 Brady's action, then lie would pay him $900 for it. On the 1st of Au- gust, 1879, a new contract with Leach was filed, which provided for six trips, and Leach was to get $2,150 in case of six trips. Lock -box 714 appeared there, and the address was to be the care of John K. Miner, though John W. Dorsey was the contractor. There was an addition of a couple of miles on account of some change in the post-office. Then came the six trips provided for in Leach's subcontract. Then came the expedition to ten hours, and by that time the $388 originally to be paid by the Government was carried up by Brady's orders to something over $6,000. On that route Mr. Vaile, who was nothing relative to it offi- cially, was the man who made the affidavit for expedition. There were various changes upon the route, to which I will not stop to call your attention ; but in December, 1879, all the postmasters on the route con- curred in asking an increase of the time to sixteen hours, representing that the mail could not be carried in the then time. There was no other mail over the route. The petitions in that case were sent out from some- where, apparently from here, with blanks left in them. They were signed with the blanks left in them for the hours as I recollect it may have been trips ; for something and the petitions got back here and part of them got on file and never had the blanks filled, up, and there they are to-day with the blanks unfilled. But when these postmasters wrote, asking that the time should be reduced on the ground that it was too low, what was the result ? The postmasters sent the application through Judge Bennett, the Delegate from the Territory; and a member of Congress, or one occupying that position, is entitled to the consideration of an an- swer. When I comnmeced my opening I supposed that that answer was entirely lost. I knew that the original was lost. I supposed that there was no evidence of its existence. But there has been found the answer of Mr. Brady, and that answer of Mr. Brady, as appears to be indorsed on the papers that we found, is : u Wirte Judge B. that it cannot be done." He does not say why it cannot be done, except the obvious rule that when a Delegate or Member of Congress or Senator asks an increase of the amount of money taken from the Treasury, it can be done promptly, provided the money is to go into the hands of contractors who have made proper arrangements. If the Delegate, Member of Congress, or Senator asks that the amount of money taken from the Treasury be decreased, if it is to come out of the pockets of these same gentlemen, the answer is: "Write Judge B. that it cannot be done;" and they wrote Judge B. it could not be done, and then they went on arid added this other remarkable reason : " It would be an injustice to other bidders at the letting of the route." Mr. Dorsey, or Mr. Miner, or whoever it was, having got this contract as the lowest bidder, having then got the route expedited and got it run up from $398 to six thousand and odd dollars, the postmasters asked that that increase be taken off, and Mr. Brady says it cannot be done, because it would be an injustice to the other bidders on the route. What have the other bidders to do with that thing? John W. Dorsey was the bidder. It the postmasters' request had been granted the amount going into the hands of Dorsey and company would have been diminished. Dorsey would have been still responsible to carry the mail; still bound to carry the mail under his original contract; but Mr. Brady says it cannot be put back in that position, though the post- masters on the route, and there are ten or twelve of them, all say it ought to go there. Mr. Brady says it cannot go there because it would be injustice to other bidders on the route. Mr. Brady in giving that 108 reason did not do justice to bis own abilities. He ought to have found some better reason than that. The fact is, gentlemen, that that petition, and that application to Ben- nett to attend to it, was but the end of a long series of applications pro- ceeding from the route, representing that the rate of speed required was greater than the wants of the locality demanded, greater than could be carried out, and that there had been irregularities consequent upon not complying with the schedule. There had been that series of moves right along from the locality, and finally Judge Bennett was written to go and attend to it, and he went with that result to which I have called your attention. On the route from Eedding to Alturas, No. 46247. there were two trips a week. The route was 179 miles long, and the time was 108 hours. The agreement was to pay $5,988. Eerdell sent out the inevitable peti- tions on that route, and lock-box 714 comes in. The first petitions for increase bear date the 12th of April, 1878, three months before service was to commence. On the 5th of October, 1878, when Major filed his subcontract, he was to be paid $2,200 more than the Government was paying to Peck, the contractor. But it contained a provision looking to six trips. The provision was this, and it shows how unjust was Mr. Brady's idea of allowing pro rata on trips: He was to do the six trips for twice the amount of money for which he was to do two trips, and he was to do seven trips for $17,000, when, if there had been pro rata, he would have been entitled to have been paid $24,000. One trip was added before the service began at all. It was added in June, 1878, and an allowance of $2,994 was made for that. In December, 1878, the time was reduced from 108 hours to 72 hours, and $26,946 was allowed for that. So that a route starting at $5,988 was within less than six months carried up to $35,925, of which sum the subcontractor got $21,000, ac- cording to the order which Brady himself made, and $14,925 according to the same order went to the nominal contractors here. By subse- quent changes the contractor got $41,916, and the subcontractor, who did the work, got of that only $23,000. And yet, gentlemen of the jury, while all that money was being paid for a reduction from 108 to 72 hours, in point of fact the mail was being carried all the time before the payment was ordered by Brady in 41 to 43 hours in summer and 60 hours in winter. Brady paid that large sum under the pretense that thereby he was getting the time of carrying the mail reduced from 122 hours to 70 hours, when, in point of fact, the mail was being carried in between 60 and 41 hours all the time. There was no pretense of ne- cessity for paying that money money, mind you, that was paid without getting anything for it; money, the great bulk of which went to parties here in Washington with whom Brady was dealing, and did not go to the contractor who was carrying the mail. They were doing a large passenger and express business with four-horse coaches. They were glad to take the mail, which was not large, along with their passengers and express matter for the original sum which the contractor was con- tent to give them and which he agreed to give them, reserving to him- self a very handsome sum. Yet, in fact, the contractors claimed, and Mr. Brady, obedient to their call, gave large increases, being liberal with the money of the tax-payers of the country. The route from Julian to Colton, 46132, was let as 120 miles long, on a 54-hours schedule. John M. Peck was the contractor, and he agreed to carry themail one trip a week for $1,188. Mr. Hayes was the first sub- contractor, and was to have $ 1,069.20. That contract contained a provision for a future increase to two, three, and six trips; that was withdrawn; 109 then Mr. Vaile's subcontract went on file. Down in June, 1879, and less than a year after tbe service commenced, two trips were added and the time was reduced from fifty-four hours to twenty-six hours. I want you to remember those figures, gentlemen. And $5,340 was added for doing it. The mail is stated to have weighed about thirty pounds and to be chiefly printed matter. It supplied, in all, about 140 families. To the terminal station the mail went quicker by another route. The pe- titions on this route asked for thirty-six hours. There was not a peti- tion anywhere that asked for less than thirty-six hours. They asked for it in different forms, but they all wound up with thirty-six hours; and yet the affidavit which was made by the contractor had the fore- knowledge that Mr. Brady was going to disregard the petitions and give a schedule of twenty-six hours. He gave the schedule of twenty- six hours. It so astonished the simple people out in the locality that they did not believe it possible that he could mean it. They thought he w r as doing what he told Walsh he was not doing making orders for fun ; that he was u funning," as the boys say, and they went on for a considerable time treating it as if it w r as intended to be an order for thirty-six hours, because they gained nothing in twenty-six hours, and all they cared for was thirty-six hours. They got twenty-six hours, and yet, gentlemen, in that very order, we shall show it to you, the twenty-six hours was undoubtedly originally written thirty-six, and, for some reason or other it was altered into twenty-six ; so that the putting it to twenty-six hours w r as not a mere careless error. There has been a change in the order, which looks as if it was a change by substituting tw r enty-six for thirty-six. But there is no dispute, for- tunately, from other parts of the order, but that the one to which Brady affixed his signature, and which he approved, was a twenty -six hour schedule. The COURT. I think we w r ill hear your peroration to-morrow. Mr. BLISS. Your honor seems to insist upon it that my opening shall have the regular ornaments. At this point (4 o'clock p. m.) the court adjourned until to-morrow morning at 11 o'clock. TUESDAY, DECEMBER 19, 1882. The court met at 11 o'clock. Present, counsel for the Government and for the defendants. Hon. GEORGE BLISS resumed his opening address to the jury as fol- lows: Gentlemen of the jury, if I had not already occupied time so greatly in excess of anything I expected, I should state with considerable con- fidence that I should be able to relieve you from listening to ine within a very short time. I think I shall be able to confine my remarks to an hour this morning. As to the routes of which I have not spoken I take up next the route from Eawlins to White Eiver, which is route 30113. It is in the Terri- tory of Wyoming, one hundred and eighty miles long. It was let on a schedule of one hundred and eight hours, one trip a week. Mr. J. W. Dorsey was the contractor, at $1,700, to be paid by the Government, Nearly -at the outset a Mr. Perkins became the subcontractor at $2,500, $800 more than the Government paid. On the 15th of April, 1879, and again on tbe 9th of May, 1879, directions were given that all communi- 110 cations on that route should be sent to the care of M. C. Eerdell. As early as October 1, 1878, three months after the contract went into operation r there was filed a subcontract with a man named Wright, by which he was to be paid for two trips $2,850 ; for three trips, $4,065 ; for six trips, $8,317, I think, and 25 per cent, of all expedition. That was the Wright contract. I am wrong in saying it was filed. I think that contract was not filed. On the 28th of December, 1878, in the same year, there was a subcontract filed by Mr. Eerdell. There were also upon that route at different times other subcontracts. On the llth of November, 1879, Mr. Stephen W. Dorsey appeared as the subcontractor. As early as the 2d of May. 1879, Mr. Dorsey telegraphed to Perkins, who was then performing the serv- ice, that there had been an order for three trips a week, the trips to be performed in fifty hours each ; the original schedule having been once a week at one hundred and eight hours. Mr. Dorsey telegraphed that there had been an order to that effect. There never was, in fact, any such order made by the Post-Office Department, or made by Mr. Brady. Mr. Dorsey, though, obviously, was at that early stage interested ID the route. About the time that Mr. Dorsey telegraphed as to a change to fifty hours there was in lact a change to forty-five hours. On the 7th of February, 1879, Perkins's subcontract went on file with one of those sliding scales paying him for increase of trips. On the llth of Novem- ber in that year, as I have already said, Mr. Stephen W. Dorsey ap- peared as the subcontractor. In December, 1879, Messrs. Foote & Dalton appeared as the subcontractors, and some time in 1880 a Mr. Taylor appears and then disappears and then appears again. All this shifting about having taken place, it was on the 12th of May, 1879, that two trips were added ; the time was reduced from one hundred and eight hours to forty-five hours, and that was done at the cost to the Government of about $12,000. On the 1st of April, 1881, seven trips were added at a further cost of $18,275, carrying the total up to $31,981.20 on a route which originally cost the Government only $1,700. The contractor originally paid $800 to the subcontractor more than he got from the Government, and there was a time in. the history of those subcontracts where the route was transformed in such manner that the contractor having originally paid out $800 more than he got from the Government was receiving about $12,000 a year more than he paid out. He always received between $8,000 and $9,000 a year more than he paid after the arrangements for increase and expedition had taken place. Upon that route, gentlemen, a Wank affidavit was sent to Mr. Perkins, the subcontractor, in a letter from M. C. Eerdell. I told you yesterday that Eerdell was the omnipresent correspondent on behalf of these parties, writing in his own name, writing in the names of Miner and of Dorsey and of everybody else, and writing as to their contracts in turn. A blank affidavit for expedition was sent to Perkins with a direction to Perkins that he was to swear to it just as it was, the language being specific : Swear to it just as it is. The number of men and horses that were in use and the number of men and horses that would be in use were equally left blank. Mr. Perkins thought it an extraordinary thing, but he went before a notary and swore to it. He sent that affidavit back here and at some time that affidavit was filled up with the number of the men and horses, both those then required and those that would be required, and it was filed in the department, and in the order in which Mr. Brady makes his order for expedition, he refers to the affidavit of the subcontractor Ill as the basis of his authority for so acting. There was at that time also another affidavit there as to men and horses, but it was not referred to, as I recollect it, in the statement made in making the order for expedition. But though referred to, gentlemen of the jury, as the basis of the order which Brady made reducing the service to forty-five hours, in point of fact Mr. Perkins's affidavit was for eighty -four hours and not for forty-five hours at all. Brady pretended to base his order upon that affidavit, but when he came to make his reduction and his allowance he reduced it to forty-five hours, and forty-five hours was the time covered by a subsequent affidavit put on file by Mr. Dorsey, indicating, as we think, gentlemen, that when they sent that affidavit to Wyoming to be sworn to, and when they started in originally they started in looking to a reduction only of eighty-four hours, but when they came to carry out their plan, either because their greed increased and they wanted more money, or possibly because Mr. Brady saw that to make an expedition to eighty-four hours and to allow the requisite sum of money for it did not present such a gain in time as to anybody who examined the case would justify any change whatever, for the one reason or the other they reduced their time that they sought for to forty-five hours, and Mr. Dorsey made the affidavit looking to forty-five hours. But the indorsement on the papers had apparently been drawn with the idea that it would be eighty-four hours, and therefore the reference was made to Mr. Perkins's affidavit, but, in point of fact, when they came to actually execute it they found it forty-five hours, and the only authority for that was the affidavit of Mr. Dorsey. But they still left the reference on the back, as made on the basis of Mr. Perkins's affida- vit, which was for eighty-four hours. That is the route, gentlemen, on which you may remember that early in February, 1881, Mr. Eerdell wrote to Perkins or to Taylor, I have forgotten which it was, in Wyoming, that if he could get the petitions here before the 4th of March he had arranged to have the two trips or three trips a week carried up to seven trips a week. The letter got to Wyoming somewhere about the middle of February. The parties went at once to work. At Eawlins they started out on the same day, getting a petition written by some one there, and got signatures through the bar-rooms and similar places there and started the pe- tition back. The route was maintained, gentlemen, from Eawlins down to White Eiver, because at White Eiver there was an im- portant Government military station. It was the region where there had been at one time, long prior to these orders, what we are all fa- miliar with, the Ute outbreak, where there was a terrible massacre by the Indians. The route was maintained solely for the purpose of com- munication with the military post. There was little, almost no mail matter passing over the route save for them. When they went to get the petitions at the military post in obedience to the request of Mr. Eerdell they tried the commanding officer of the post, but he refused to sign. They could not get anybody to sign except there does appear hereapetition signed by a lieutenant and somebody else. Buttheman who was employed to get the petitions signed, after going to the commanding of- ficer and others, and trying to get them to sign, found that they would not, gave up the business, destroyed the form of petition which he had and did not send it. Those petitions did not get back here by the 4th of March. They got back here on the 5th of March, I think it was. On the 8th of March Mr. Thomas, L. James, having become Postmaster- General on the 6th entered upon his duties, I think, upon the 6th Mr. Thomas J. Brady being still Second Assistant Postmaster-General, made the order allow- 112 ing the carrying of the service up to seven trips the seven trips which Mr. Eerdell in the preceding February said he had arranged to have made, provided the petitions were here before the 4th of March. Mr. Brady did not go back upon him. Mr. Brady made that order, and when the order was, as everything that is done in the Post- Office is, entered on a large blank book which is known as the daily journal, and that journal was taken to the Postmaster-General by the clerk in charge to have his signature as indicating his approval of it, Mr. James saw that the order had been made. He signed the jour- nal, and directed the clerk to see that that order, which was the last order, as I recollect it, on the journal of the day, was revoked. That that clerk communicated that information to Mr. Brady was shown by the fact that soon after Mr. Brady came into see Mr. James to talk about that order, and he wanted to know whether that directon to re- voke that order indicated the policy of Mr. James as Postmaster-Geir eral. He was informed that it did, and he left. Mr. James assumes that he had obeyed the order that he had given him to have the ordei revoked, and it was not until the last week in August, as I recollect it, that it was discovered after Mr. Brady had gone out of office that he had failed to revoke that order, and that it had continued in operation all the time down to that time with its consequent result of drawing from the Government money at the rate of $18,725 a year. That order was made in that way, and then having been made by the way, gentlemen, this letter of Mr. EerdelPs which I have referred to was a letter we had great difficulty in getting at. We could hear of it everywhere. We could not find it. The recipient had passed it to somebody else, somebody else had passed it to another party, that other party had mislaid it, or it was in his baggage at a distant place, and everything of that kind ; but we finally succeeded in finding all of the witnesses, and when we got them here, after their statement of the contents of the letter, we did succeed in getting from the other side the press copy of the letter. It is the only paper that they have ever been willing to give to us as showing any of their actions in connection with these contracts. We make no complaint whatever of it, gentle- men. We simply call your attention to the fact that they have their papers in their possession, and that we have not got them. Upon that route, gentlemen, I call your attention to the fact that it may be claimed to have been kept up in connection with the Ute outbreak. Now, the Ute outbreak occurred in the fall of 1879. The orders that were made upon this case of increase were made entirely without refer- ence to that outbreak, because the first order adding two trips and $3,400 was made on the 1st of May, 1870, long before the outbreak. The order for expedition reducing it to forty-five hours was made on the 1st of May, 1879, and long before the outbreak. The order for seven trips was made on the 8th of March, 1881, and long after the outbreak had been quelled, and after the number of the military stationed at the post had been greatly reduced. I state this because there is in the pa- pers an attempt to show that these orders and the expedition upon that route was made in view of the emergency or the circumstances created by the Ute outbreak. The Ute outbreak was on the 27th of September, 1879. Orders were either made on the 1st of May, 1879, or on the 8th of March, 1881. The order of March, 1881, undoubtedly had the approval of the military authorities, or some of the military authorities here. All the offices upon that route from Eawlins to White Eiveu, including the two terminal offices, produced a net revenue which varied from $1,245 to $1,724 in different years. Excluding Eawlins, which is on 113 the railroad, and receivc'd its mail matter east and west entirely inde- pendently of this route, and we find this, that the offices upon that route in 1870 produced a revenue of $79.84, and in 1880, after the hiilitary had been increased they produced $325.89, and in 1881, $301.51. And yet the Government was made to pay upon that route, which admittedly was a local route, sums as high as $31,981.25, and leaving a profit to the contractor, who did no work, which varied at different times, but gen- erally was about $12,000. On that route, also, let me remind you, gentle- men, that after Mr. Kerdell had got his order increasing it to seven trips in April, 1881, he writes back to the subcontractor out there calling his attention to the fact in substance of what a good thing he had done for him ; how much he, the subcontractor, was going to make by being al- lowed to perform the service at $20,000, when the contractor was get- ting $31,900, and confident that he would feel very grateful and anxious to do something for somebody, for getting him so good a thing. Mr. llerdell, at some little length, impressed upon him that he, lierdell, got that arrangement made, and that the subcontractor out there must not suppose that any attorney or anybody else had anything to do with it; that he, Kerdell, did it all; that he, Eerdell, did so good a thing for the subcontractor in arranging to give him $20,000 for performing the service, while the contractor got $31,900; that he, lierdell that is the substantial inference from tne letter wants to be paid for what he did. The route from Mineral Park to Pioch^, gentlemen, is the last route included in this indictment which I shall take up. It is route 40104. It was let as being two hundred and thirty-two miles long. The time was eighty-four hours, and it was one trip a week. John W. Dorscy was the contractor, and the amount to be paid by the Government was $2,982. On this Peck, with no relations to the route, in a letter written by Miner, who had equally no relations to the route, asked leave to sub- let the contract, and Brady allows it, John W. Dorsey being the con- tractor. There was a subcontract on file in IlerdelPs name here at one time. There was another subcontract on tile in the name of McKibben, some- times known as "Joe" McKibben, a well-known resident of Washington Then there was a subcontract on tile in the name of Salisbury, a regu- lar mail contractor. There had been originally made a subcontract with one Jennings, and he had sent it here to the Delegate of the Territory, Mr. Dagget, to be tiled under the subcontract law. That subcontract was left at the ISecond Assistant Postmaster-General's office to be filed. The clerk received it, with nointimationthatit could not be filed. Inpoint of fact there was then on file a subcontract of Mr. Kerdell's, and under the law there could not be two on file. Therefore that contract never was filed. Mr. Jennings went on per forming or pretending to perform tor I think he was singularly deiicient in his performing his subcon- tract and assuming that he was to get his pay from the Government, and when, after a time, he got no pay he came on here, two years afterwards, I think it was, and for the first time then found that his subcontract had not been filed. That resulted in a good deal of stir here, and a good deal of what I suppose I may fairly call a row, and as the result of it Mr. Brady undertook to make an order that Jennings's subcontract should be placed on file, and should be placed on file as of the date when it was originally brought here, thus cutting off' everything that had been done since, and creating the greatest confusion, owing to the fact that payment had been made after that time to the other subcon- tractors who had their contracts on file, and presenting the question as 8GB 114 to what Mr. Jeunings's relations were to the department under such circumstances as that. On the liith of January, 1879, six months after the contract went into effect, two trips were added, and the time was reduced from eighty-lour hours to sixty hours. On the 23d of July, 1879, such ;m addition was made as to make the route from Mineral Park to Pioche a daily route, and the result, therefore, was that from that time on a contract which had been let by public bidding for $2,982, was run up to $52,033.37. As to that route there are a series of remarkable facts to which I desire to call your attention. In the first place, there is a petition on file which was made the basis of one of Brady's orders, which purported to be a petition of citizens furnished by the mail on that route from Pioche, Nevada, to Mineral Park, Arizona, asking for more frequent malls and a reduction from eighty-four hours to sixty hours They describe- theni selves as citizens furnished mail by the United States mail on that route. Of the signers of that petition, no one that can be identified lives or ever did live on that route. No one of them lived nearer than a place called Signal, a hundred miles south of the southerly end of that route, and the postmaster at the southern terminus of the route, Mineral Park, who opened every mail bag that went over that route and examined every letter that went over that route and I shall show you pretty soon that he had not any great labor to do it that postmaster will say to you that he never knew of a letter passing over that route going to or from Signal; that the inhabitants down at Signal did not get their matter on that route at all. Thej' got it in an- other way. They were not citizens " furnished by the mail "on that route, and yet, gentlemen, some of those people honestly and squarely and properly I believe signed a petition, but that petition is a forged and altered petition. When you see it it will be obvious to everyone of you that it is forged and altered ; that the route being 40104 there was taken a petition from some other route which w ? as 40100 and something, the numbers being in numerals, the figure at the end was altered from the route for which that petition was signed so as to make it fit this route with the termini of the route Pioche, Nevada, and Mineral Park, Arizona, so altered, written over erasures, as anybody can see, and written over erasures under such circumstances that anybody can see that it related to a route not in Nevada and Arizona as there de- scribed $ and moreover, that petition bearing some forty or fifty names, you will all agree with me when you see it that the signatures on it were made by not exceeding five, six, or seven different people. There are not more than five, six, or seven different handwritings to all those names, and it is a petition, as I said, of people claiming to be furnished with mail matter on the route. All of the signers who can be identi- fied lived elsewhere, and the petition is thus altered, as I have said. But, gentlemen, the extraordinary things in connection with this busi- ness did not stop there. There was another route, from Mineral Park to Ehrenberg, Mineral Park being the terminus of both of those routes. On the same day in which Mr. Brady made the order increasing the service or expedition from Mineral Park to Pioche he made a similar order upon the route from Mineral Park to Ehrenberg, and that peti- tion is a precise duplicate of the petition on the Mineral Park and Pioche route. The signatures are the same. Its language, as being parties receiving mail matter on the route, is identical. The names are obviously written by the same parties, and, gentlemen, it is altered and erased and forged in precisely the same way. It never was made for the Mineral Park and Ehrenberg route. Those two bogus petitions 115 were on one and the same clay, when on their face any man who sees them could tell that they were fraudulent, accepted by Mr. Brady as his authority for directing I don't remember whether that is an increase of trips or an increase ot speed ; at any rate, one or the other, which took from the Treasury a large amount of money. The petitions are altered not only in the route and the number of the route, but they are altered iu the time and everything of that kind, so that they are com- pletely diVerted from the use for which they are prepared ; but not only that, gentlemen ; that increase up to $52,000 was made on the 29th of Jamiary, 1879. The first increase was from $2,982 by the adding of $19,318 for expedition and two trips, and then $29,733.33 was added for four trips more. That expedition was made on the Mineral Park and Pioche route one of the orders. The order for the addition of $29,000 was made upon a single letter. The other order was made nominally upon the petition to which I called your attention. The single letter was written by Sidney Dillon, the president of the Union Pacific Railroad Company, and it was a letter which asked for communication by the Mineral Park and Pioche route, which was a portion of the route leading down to the Southern Pacific Kailroad, a rival route of the Union Pacific. It was requested on the ground that it would be of very great value in develop- ing the Territories, and giving intercommunication between the people along the line. Twenty-nine thousand dollars were taken out of the Treasury on thi j single recommendation of the president of a railroad com- pany representing the necessities and importance of a complete daily con- nection on that route. And yet, gentlemen, upon the route we find this condition of things: From the 10th October, 1879, to the 31st of Decem- ber, in the same year, we are enabled, on thirty-nine days, to fix the num- ber of letters and the amount of postal matter which went over that route. We can fix it absolutely. The postmasters, misunderstanding their in- structions, instead of counting the number of bags, counted the number of letters. As there was only one bag, and they did not suppose any- body ever thought there would be more than one, it never occurred to them that what was required was the record of the number of bags; so we find that in the whole thirty-nine days there went over that route one way thirty-one letters. On twenty of the thirty-nine days no single letter went over the route that way, but the mail-carrier, with the mail- bags, passed over the route from end to end. The only effect of that trans- action on his part was to aid these parties here iu drawing $52,000 a year from the Treasury of the United States. On thirteen of those thirty-nine days one letter went over the route in that direction ; on three days two letters ; on one day four letters ; and on one day it got up to the magnificent number of five letters. But, gentlemen, every one of those letters during the thirty-nine days were way letters. In the other direction the total was a little larger. There never was a letter during the whole time that went over the en tire length, of the route that started from Pioche at the north and reached Mineral Park at the south. The letters were chiefly taken upat a little intermediate town, Saint Thomas. That being the condition of things, and one of the increases having been made upon the letter of Mr. Sidney Dillon representing the importance of this intercommunication from road to road for through mails, what do we find ? On the 22d of January, 1880, the increase having baen made on the 23d of July, 1879, Mr. Brady makes an order, in which he recites that these mail bills, showing that " there was little mail matter passing over the route and that the service was irregularly performed" (which latter fact the mail bills did not show at all), therefore that the route should be reduced from the 1st of Febmary^ 116 'this order having been made on the 22d of January back to its original price, $2,982 ; that all the increase which he, Brady, had made by which the sum of $2,082 had been run up to $52,000 a year should be cut off, because the mail bills showed that there was little mail matter passing over the route, and, as he said, that the service was irregu- larly performed. He was so indignant that he would not even give their and it is the only case I think where he failed to do it the month's extra pay on the service cut off, though the contractor claimed, and probably correctly, that under the law and the contract, if the serv- ice was cut off he had a right to his mouth's extra pay upon it. But here was Mr. Brady's honest heart so full of indignation because he had been induced to put up the cost to $52,000, when there were in thirty-nine days only twenty-one letters passing over the route- that fact obviously having been brought to his attention that he cut it all off with one fell swoop. And yet Mr. Brady's honesty did not last him longer than the 28th of the same month, for on that day he made another order reciting his order cutting it all down and then re- citing that in view of the fact that the route formed a part of the direct line of communication between the Central and Southern Pacific Kail- roads it was deemed advisable to maintain a portion of the service. The mail bills, which he had himself seen, showed him thatthe route did not form any portion of a route for intercommunication between those two roads, because it showed him that no solitary letter had ever left the line of the Union Pacific Kailroad Company on the north and reached the southern terminus of that mail route on the south. He recited, however, that because that was so he would not cut the service all oft' and reduce the payment down to the original sum of $2.980, but he would reduce it to three trips a week and he would only deduct $29,733.33, leaving the contractor with his twenty-odd thousand dollars clear. And then his indignation was so far modified also that he gave the contractor his month's extra pay on the service cut oft'. Having reduced the pay to $2,982 six days previously on the ground that there was no mail matter as appeared by the mail bills, he put it back six days later to twenty- odd thousand dollars on the pretense that it was part of a through route, when those very mail bills showed it was not any portion of that route. Gentlemen of the jury, we shall show you some facts that will perhaps give a reason for this action of Mr. Brady's consistent with the belief that the original cutting-down order was not the result of a spasm of conscience. The original cutting-down order was dated on the 21st or 22d of January. On the 12th day of January, eight days preceding, Mr. Brady had been called before an investigating committee of the House of Eepresentatives and had been examined somewhat in detail, but only partially, and he had been called upon to account for his estimate of $2,000,000 as all that was necessary for the star-route service made but a few months previously, while he was then asking Congress to give him $2,000,000 more to cover a deficiency which he had created, or which would exist under the orders which he had made, if those orders continued in force to the end of the fiscal year. He was called upon to give his reasons, and to give facts in connection with them. He was allowed to go oft' the stand, but he was directed to prepare and furnish certain tabular statements, and to give certain detailed information which was subsequently to be furnished to the com- mittee. He left the committee-room and went back to his office, and soou afterwards we find him cutting oft this whole service and redue- in" 1 it from $52,000 to $2,900. Undoubtedly in the momentary throw- in* off of balance which would come over a man under such circum- 117 stances when he found that an investigation was upon him and was ap- parently beiug pressed by a committee whokuewsomethiug and meant to know more, he made this order of red notion. But six days later there came a little calm reflection, as we think you will infer from the facts, and he came to the conclusion that if he 'allowed the record to stand in that way the question would be, u How did you ever come to put the price up to where it was! What justification had you for that, if you say there is no mail matter on the route F So he put the service back to the extent of three trips, and took from the Treasury some twenty-three or twenty-four thousand dollars a year for so doing. Upon that route, gentlemen, the net revenue in the year 1879 was $701.39. For the year 1880, after Brady's fostering ex- pedition orders had been made, the income ran down to $597. In the year 1881 it recovered to $653.67. If you take off the post-offices which were not on other mail routes, Mineral Park, which was on three other routes, and Pioche, which was on four other routes, and also on a railroad, and take only the post-offices which were dependent upon this, route for their mail matter, the entire revenues of all the post-offices of this character were less than $50 a year, and for the supply of them Mr. Brady directed the Treasury of the United States to pay, and it did pay, at the rate of over $52,000 a year. But, gentlemen, I will show to you that the order was persisted in after the mail bills brought to Mr. Brady's notice the fact that there was no justification for it. We shall present to you other evidence which will show you that in point of fact Mr. Brady knew, or was bound to know before any order was made, that there was no necessity for and no propriety in any such order of increase or expedition. On the 26th. of August, 1879, Mr. Bean, living not on the route but north of the route, a lawyer well known in Nevada, wrote that the mail was an aver- age of six letters a day, and that the population along the route was from twenty to thirty at different stations ; and he says truly, because he was in the same condition as a great many other people before this investigation started, that he did not know the causes that led to the es- tablishment of the route. He said it was not done in consequence of any petition from the Pioche end of the route, which was the north end of the route. I have shown you it was not, nor was it done in conse- quence of petitions from the south end of the route. It was done under the pretense of petitions from a point a hundred miles south of the south end of the route. Mr. Bean says he is sure the orders could not have been made by any one who knew the facts. He was wrong there, gen- tlemen. However, he added " and advised without personal interest." No man who advised without personal interest could have done the thing that was done on that route. There are some other details upon that route, but I will not stop to go over them. Now, gentlemen, I have gone through this case somewhat in detail, and yet omitting much that will come out in the evidence concerning these nineteen routes in this indictment. I have spoken to you, you wil I undoubtedly think, at great length, and probably unnecessary length, but I have spoken only in outline, as it will appear from the evidence,, as to the facts applicable to this case, and the facts upon which we shall ask you with great confidence, when the evidence closes, to render a verdict of guilty against these defendants. I have stated nothing to you, gentlemen, which I do not believe we shall be able to prove. I have stated nothing which I do not believe the court should allow us ti> prove. Yet, of course, you have already seen the indication that there will be an attempt on the other side to exclude some portion of the proof. I have stated nothing, as I have said, so far which we do not regard as entirely at our command; evidence which we are in a posi- tion to place before you at any time. I now desire to call your atten- tion to one single other piece of evidence wiiich we hope to place before you, but as to which I am bound to say I cannot speak with entire cer- tainty. There is an ex- Senator of the United States, like Mr. Dorsey, a car- pet-bagger from one of the Southern States. When the gentlemen concerned in the present management of this prosecution came into the case and took up the papers they found there had been left on the record a detailed statement that this witness could testify to various facts showing, among other things, the payment of money to Mr. Brady by Mr. Stephen W. Dorsey. I do not desire to go into details further as to what the witness would testify to, because it is possible that we may not have him here, and for this reason, gentlemen, he is a ingi- tive, with an order of this court for his arrest, and we are seeking to serve him Mr. WILSON. [Interposing.] Your honor, I want to know if this is a proper statement to make. The COURT. He is stating what he expects to be able to prove. Mr. WILSON. No ; he is not. Mr. DAvrt>GE. He says he does not expect to have him here. Mr. BLISS. I do not say so. I say we expect to have him. Mr. WILSON. All right. Go on. Mr. BLISS. I say, however, that he has been in concealment. I say he has been concealed in Nevada, and we have spent a great deal of money in trying to find him, and the first time that we heard of him after emerging from concealment was when we were notified that he came east on a train from Chicago. I do not know that he was in company with him, but he was on the same train with a gentleman employed by the defendants in this case. We heard that he Appeared in New York ; that he went to Northern New Y^ork, with our agents in sharp pursuit, and jumped over the line to Kingston, in Canada. There he was at the last account protesting all the while that he could not testify to anything that would do us any good, but at the same time running out of the country to prevent being put upon the stand to see whether the state- ments in the papers on file made by such reputable persons as Thomas L. James and others of what he had told to them were true. He was seeking to escape in that way. I believe, gentlemen, that before this trial is over he will come to the conclusion that it is best to come here and tell the truth and subject himself to any discipline that the court may impose upon him rather than to subject himself to what must be practic illy perpetual exile. The order of this court goes anywhere in this country, and when found, places him liable to an immediate ar- rest. I believe we shall have him here ; but I am bound to say that I base my belief solely upon my knowledge of human nature and the cir- cumstances of the case, and not upon any authority from him. If he is here we shall place him before you upon the stand, and when we have done so we shall ask you to remember that he is not a willing witness; that he is not a witness who has, of late at least, assisted the Govern- ment in any manner, but that he is a witness who has made certain statements which he said he could swear to and which we believe were true. That is the only evidence that I have referred to in my lengthy opening statement which is not, as we believe, entirely at our control; and I deem it but proper Avhile referring to it to call your attention to 119 the facts which may result so that if we fail to present the testimony, yon will understand it is from no fault of ours. And, now, gentlemen, let me briefly recapitulate what I think we shall be able to show to you. I think we shall be able to show you that Mr. Brady resorted to expedition as the regular practice of the depart- ment in contradistinction from all his predecessors who resorted to it only in exceptional cases, and in contradistinction from his successor who has never resorted to it. I think we shall be able to show you that he resorted to it when it was wholly unnecessary, that he paid large sums for expedition where none was needed, because after the expedition the mail was not carried in any less time than it was before, for the simple reason that it was previously being carried in less time than that for which Mr. Brady paid large sums under the pretense of ex peditiou ; that he paid large sums for expedition and for increase of service where there was no mail and where the evidence that there was no mail practically except the bag, was in Mr. Brady's own pos- session and shown by the facts to have met Mr. Brady's own eyes. We shall show how in every little thing the addition of a post- office on a route, the taking off of a post-office from a route the con- struction by Brady was against the Government; how, when service was reduced, in a large number of cases no deduction was made, but when a post-office with a mile or two of distance was added there was always an increased allowance made. We shall show you allow- ances for supposititious additions, when in point of fact those additions were entirely false; when the mail went over the same road all the time, and yet when Mr. Brady claimed that there was an additional distance made by taking in some post-office or other, though his own record showed him that the alleged addition was not made ; we shall show you that Mr. Brady utterly and entirely disregarded the produc- tiveness of a given route ; that there never was anywhere upon any of these routes any evidence that he took into consideration productive- ness but once, and that was when he took it into consideration in the order of the 22nd of January, 1879, and cut down the Mineral Park and Pioche route, reciting that there was no mail matter, and he changed that all in six days afterwards by putting up the service again. We shall show you cases, like that of Raton, where he wrenched a route around to the inconvenience of the citizens and to the great loss of the Government, and rendered it necessary thereby to have the route expedited so that the mail might arrive at the end of the route in the day time, and for that expedition large sums were taken out of the Treasury, when, if he had left the route unchanged, he would have needed no expedition, the mail would have gone over the route in the time that the citizens desired, and if he had left Raton in its proper connection it would have derived its mail matter by a mail route in the way in which the people in the locality desired it. We shall show, I think, that when he had occasion on such a route as that from Toquer- ville to Adairville to cut off ten miles from the end of the route because the First Assistant Postmaster-General had notified him that the post- office was discontinued and there was no place to take the mail, that he proceeded first to make an order for expedition, involving some $12,000 a year to the Government, and then he proceeded within four days afterwards, by an order, to cut off these ten miles and give a month's extra pay, reckoning it on the increased pay instead of reckon- ing it on the original pay. We shall show you, gentlemen, that he habitually, I may say wjthout exception, because the only exceptions are those whei\j we sliow you the circumstances so connected with the 120 Iraiul that they cease to become exceptions, paid up to the limit of the law, both for increase of service and increase of speed ; that the evi- dence is clear and must be clear, in his own knowledge and yours, clear from the records of his own department, clear from the subcontracts on file there, that there was no necessity for paying up to the limit, for the simple reason that the men who were performing the service were willing to perform the service for a good deal less than they re- ceived. We shall show you that in at least one case, in direct violation of the law, he antedated an order and paid large sums from the Treasury for service alleged to have been rendered before the order was made, though the statute expressly provides that he shall not do so. We shall show you, gentlemen of the jury, that he made his expe- dition entirely upon the oaths of the men who were to be benefited by it these contractors here in Washington, none of whom, at the time of the making of the oath, had ever seen the route, and none of whom at that time knew, of his own knowledge, how many men and horses were then being employed, and none of whom, other than Vaile, was by ex- perience calculated to say how many would be used for performing an increased rate of speed. We shall show you that he acted upon the oaths of the parties, though the only oaths before him were two incon- sistent oaths of the same man, sometimes sworn to on the same day, and at other times sworn to at a little different time, when one or the other of those oaths must have been false, and the mere fact of the ex- istence of those two oaths showed him that the man was not worthy of belief for a'moment. We shall show you that he made an order on the Bismarck and Fort Keogh route, which he plumed himself upon as be- ing less than pro rata, but based it on Miner's absurd oath that it would take one hundred and fifty men and one hundred and fifty animals to do the service, when, in point of fact, there had been an affidavit of Miner, in his office, showing that it would take thirty seven men and some eighty animals, I think $ and when the order had been originally pre- pared as based upon that affidavit and not upon the larger affidavit of Miner; but if he had made the order allowing the amount he did allow, instead of being less than pro rata it would have been over pro rata. He however took that absurd oath, and upon it based an order to have the exceptional pleasure of stating in his order that it was less than pro rata. We shall show you that the oaths were lies upon their face; that they stated that there were then in use a certain number of men and horses ; that from the very nature of the case the statement was false, because if the service was being performed it required more men and horses to perform it. We shall show to you that the statemen ts as to the number of men and horses that would be required to perform the service were absurdly false, because they led to such results as saying that a horse should travel only two miles in a day in carrying the mail, and yet on the existing schedule the horses were shown to be traveling anywhere from fifteen to twenty-eight miles a day. You will bear in mind, gentlemen, that the Government was to be defrauded, either by understating the existing number of men and horses which were being employed, or by overstating the number of men and horses which would be needed on the increased schedule ; that one being under- stated or the other being overstated the Government would be defrauded ; and if both occurred in the same case, one understating and the other overstating, the Government would be defrauded in very large amounts. We shall show you that he made orders on such affidavits as those made, as I have said, by affiants who never were on the route ; made, as I have said, by affiants who had no experience in the service, except 121 Yaile. We shall show you that in direct violation of the regulations which required the contractor to make his own statement of the number of men and horses, not to be accepted as conclusive at all, but as his view of the case, and that regulation made under a law which practically made the regulation law, Brady utterly disregarded it when it suited him and claimed to accept the affidavits of a subcontractor, that sub- contractor being a man who was not in point of fact performing the service and who had not at that time ever been upon the route. We shall show you more than that, that he accepted the affidavits of men pretending to be subcontractors who never were subcontractors, and whom the record showed had no relation to the route whatever. We shall show you, gentlemen, that he accepted affidavits which, on their face, were altered, erased, and fraudulent ; that there were of all the affidavits on the routes which he accepted but two which were not erased on their face and obviously unreliable, to say the least, and of those one was made by Miner and the other was the oath of Yaile, ac- cepted by Brady in violacion of law. We shall show to you, gentle- men, that he made orders for an increase of allowance which were il- legal, because the statute expressly provided that he should make no allowance for increase of speed unless the necessity for using more men and horses was thereby caused. We shall show you by the men who drove the horses all the time before and after Mr. Brady's order that no increased number of men or horses was required, but identically the same number of men and the same number of horses continued jogging over the route from one week's end to another. We shall show to you, gentlemen, the petitions which pretend to be the excuse for making the orders in some cases, and that the petitions were not only false in fact ; that they were not only gotten up by these other defendants who directed that their interest in them should be concealed and that the mode in which they were gotten up should be concealed, but that the petitions bore on their face evidences of alter- ation, evidences of change such as ought to have led Mr. Brady ? and would have led any honest Assistant Postmaster-General, or any man whoever expected that there would be any examination of his acts, who did not suppose that these things would go along without examination and without investigation, to hesitate greatly. We shall show you, gentlemen of the jury, bristling all over this case evidence of prearrangement with Brady and of understanding between Brady and these other defendants or some of them. We shall show you the statements of these defendants made in various places and to various persons that the allowances paid by the Government would be increased. We shall show you that these increases did actually take place in the manner and at the time that they said they would take place. We shall, show you a conversation with at least one man in which amounts of future increases and all were specified and where the result proved that tbe amount only was incorrect in being somewhat understated. We shall show you affidavits made six, eight, and ten months in advance of any applications for expedition, which affidavits stated the precise number of hours which Mr. Brady subsequently recited to be the hours tor which he would order service, and as to which he wished information as to how many men and horses would be required to perform it in that time; and those hours were picked out, gentlemen, entirely apart from any designation of hours in the petitions, because the petitions which pretended to be the excuse for the orders were not in existence when the oaths were taken; and called for hoars entirely different. We shall show yon that the defendants spent over $6,000 in building sta- 122 tious on a single route where, if tlieir contract had remained unchanged, they would, during* the entire four years, have received only about $9,500 ; and yet they built twice as many stations as they should want, avowedly, because they said they were going to have an increase, and when they got the increase they should want the additional stations, and they would not use the additional stations until they got the in- crease ; and they did get the increase, and then they used them. We shall show to you the payment by them of large sums, or considerable sums, for performing the service in excess of the amount which they re- ceived from the Government, and we shall show you in every one of those cases, gentlemen, that the loss was promptly, and after a very little time had elapsed, transformed by Brady's orders into contracts which gave them great gains. We shall show to you that by their form of subcontract, unknown in that respect until these men went into the business of speculating in mail contracts, which form they had printed at the outset of their career, they assumed that they were to have expedition upon their routes, and they got expedition upon their routes, and they used their form of contract under which the men who performed the service were to get somewhere from twenty-five to sixty-five per cent, of the sum allowed for expedition while these defendants were to pocket the differ- ence of seventy -five to thirty-five per cent. In Brady's orders he was compelled by the subcontract law to state the fact that he was allow- ing thirty-five to seventy-five per cent, more for carrying the mail than was necessary to be allowed for carrying it, because he was allowing from thirty-five to seventy-five per cent, to the parties who, his own contract showed, were not driving a horse or carrying any mail. He was allowing only a small percentage to the men who actually were performing the service. We shall show to you, gentlemen, as evidence of prearrangement, the way in which the bids were arranged so as to be upon routes where the trips were infrequent and the speed was low, because those were the only routes which afforded an op- portunity for their peculiar proceedings, which alone made their business profitable in view of the low sums they bid, securing from Mr. Brady increase of trips and increase of speed. We shall show you, gentlemen, that they were allowed not to commence the service when the law required them to commence it ; that they were not declared failing contractors, as Mr. Brady's duty required him to declare them so, until they could have time to get up petitions and get ready the ma- chinery which was to be, in some sense, a justification, an excuse and apology for Mr. Brady's orders for expedition, and that in some cases the commencement of the service and the orders for increase of trips and expedition coincide so nearly that it is impossible to tell which was first. We shall show you, gentlemen, orders for expedition and increase made by Mr. Brady in spite of the remonstrance of the people along the line of the route and in spite of the remonstrance of his own officers. We shall show you orders for expedition and increase of service perse- vered in by Mr. Brady in spite of these remonstrances. We shall show you that when it suited his convenience he found it very desirable to appeal to United States Senators and Members of Congress as backing him up and giving authority for doing what he did. I am not aware that there is anything in the law or the Constitution that says that a Member of Congress or a Senator who is sent here to legislate in yon- der building has any right to possess more influence with reference to mail service than you or I or anybody else. He has the right of the citizen living in the locality and no more. We shall show to you that while there was claimed to be given to those men undue weight when 123 they requested increase of service and increase of speed, because they took from the Treasury increased amounts of money, thnt when those persons became satisfied that injustice had been done and there ought to be a revocation of the order, then they could not procure its revoca- tion ; that Senators and Members were told it could not be done, and that absurd excuses were given, such as the excuse on the Vermillion and Sioux Falls route, that it would be unjust to the other bidders. We -shall show you double service paid for on the same route. We shall show you expedition ordered and paid for when expedition was not made and when there was no change of time. We shall show you trips or- dered to be made in a time which all the postmasters on the route de- clared to be impossible, which turned out to be impossible, and which necessarily led to fines and penalties under the law, which fines and penalties fell upon the subcontractors and not upon-the favored friends of Mr. Brady, these defendants. We shall show to you that those fines and penalties were remitted in some cases, and so remitted that the contractors put them into their pockets and kept the money which had been originally taken from the subcontractors. We shall ask you, in that connection, to remember the statement of Mr. Rerdell to Mr. James and Mr. MacVeagh, and the statement of Mr. Brady himself to Mr. Walsh, that he was paid 50 per cent, of all the remissions that he ordered. We shall show to you, gentlemen, cases where, as upon the Mineral Park and Pioche route, Mr. Brady sawed the service up and sawed it down, so far as the allowances were concerned, at his own sweet will, upon excuses which the papers before him, to which he referred, showed to be untrue, upon excuses which jnust have been untrue, and under circumstances which showed beyontt-all question that he was acting in utter disregard of the interests of the Government. We shall show you the buying of the silence of postmasters and contractors who complained and recommended a discontinuance of the service, where these con- tractors were, beyond all dispute, making very large sums, because the record shows that they were getting a very large amount more than they paid to the subcontractors for performing the service. We shall show to you, gentlemen, all these things and more. We shall show them to you by absolutely. unimpeachable testimony, testimony which will not be impeached, testimony which cannot be impeached, testimony which there will be no attempt to impeach. We shall show all these things and more to you, and when we have done that, we shall leave the case in your hands, gentlemen, confident that you will vindicate the cause of honesty and the cause of the honest administration of justice in the District of Columbia by rendering a prompt verdict of guilty against these defendants. NIVERSITY OF CALIFORNIA LIBRARY BERKELEY THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW Books not returned on time are subject to a fine of 50c per volume after the third day overdue, increasing to $1 00 per volume after the sixth day. Books not in demand may be renewed if application is made before expiration o'f loan period. 28 1928 APR 17 1939 AH * 18 1939 50m-7,'16 YC 25109