Part 15

So Mr. Vaile came in. Now, then, they had to secure Vaile against any loss, and it seems that on July 1, I believe, of that year, the law allowed the subcontract to be filed. It was a little while before that that a law had been passed for the protection of subcontractors. That was all explained to you yesterday. You know it is something like a mechanic's lien; that if the subcontractor would only file his subcontract in the Post-Office Department and let that department know the terms of it they would not pay the original contractor until this subcontractor was paid. Now, that law had gone into effect a little while before August, 1878, and the effect of that law, if anybody filed a subcontract on these routes, was to cut out all those post-office orders that Miner had given to secure Dorsey. You understand me now, do you not? It was when he met him in Saint Louis that it was agreed that these post-office orders were to be given and filed with the German-American Bank in this city. Now, then, the law passed for the protection of subcontractors, and subsequently the filing of subcontracts on those very routes, would render those post-office orders absolutely worthless. Very well. When they made the contract with Mr. Vaile they agreed to file the subcontracts with the department to protect Vaile and that rendered S. W. Dorsey's security absolutely nothing. That cut out all other claims, drafts, and everything else, and at that time Mr. Miner was fully authorized by power of attorney from J. W. Dorsey and from John M. Peck, who was at that time in New Mexico, to make this transfer to Vaile.

Now, see where we are on August 16, 1878. On Dorsey's return in December, 1878--he had not been here from that time, and do you not see he had nothing to do with it--he found that these subcontracts had been filed. He found that the note in the German-American Bank had been protested, and he found that his collateral security was not worth a dollar, that it was all gone. Thereupon he demanded a settlement. The matter drifted along for a little while, and a settlement was made with the bank; and Mr. Vaile, holding the subcontract, undertook to pay that Dorsey note, and he did pay it. He took it up, and gave, I believe, his own instead, and that was finally paid. But the money due Dorsey, the sixteen thousand dollars that at that time amounted to something more by virtue of interest, was not provided for. The money that had been expended by John W. Dorsey was not provided for. The money expended by Peck was not provided for. Now, I want you to see exactly how that matter stood at that time. We have got it up to that time and here it stands, and the chief conspirator out sixteen thousand dollars and without any interest in one of the routes. There is where he was at that time, and that is what we will show. The brother of the chief conspirator ten thousand dollars out, and not the interest of one cent in any route. The brother-in-law of the conspirator about ten thousand dollars out, and not a cent in. That was the condition of this conspiracy at this time, and when Vaile took these routes Brady telegraphed him and asked him, "What routes of Miner, Dorsey, and Peck, are you going to put the stock on? This thing can be continued no longer. The stock must go on." We will show it. Now, having got to that point, we will take another step. There is nothing like understanding things as we go along.

Now, from the time Mr. Vaile took the route, to the settlement in 1879, to which I will call your attention in a little while, Mr. Vaile had the absolute control. Neither Peck nor S. W. Dorsey had the slightest thing to do with one of those routes until the final settlement, and I say to these gentlemen of the prosecution now, that in that time they can find no line, no word from Stephen W. Dorsey upon the subject. They cannot find that he wrote a word to any official, that he sent a petition to anybody, that he wrote a letter to any human being upon the subject, or that he took any more interest in it than in the ashes of Sodom and Gomorrah. It went right along.

Now, then, up to this time, Stephen W. Dorsey had made nothing. He was only out about sixteen thousand dollars or eighteen thousand dollars. John W. Dorsey was in the same healthy financial condition. John M. Peck had reaped the same rich harvest of ten thousand dollars lost, and all the things had been turned over to Mr. Vaile; John W. Dorsey put out--left out--with nothing to show. That is the first chapter in this conspiracy. [Resuming.]

I believe when I stopped, the principal conspirators were substantially "broke." The head and front was out sixteen or eighteen thousand dollars, and the other two ten thousand dollars each. Now, a contract was made, and I propose to prove that contract in the course of this trial. When that contract comes to be shown, it will be about this: That, on the 16th day of August, 1878, H. M. Vaile, John R. Miner, John M. Peck, and John W. Dorsey made an agreement That agreement made a partnership, and we will show that a partnership was formed by and between Miner, Vaile, Peck, and Dorsey on the 16th day of August, 1878. We will show by the articles of that partnership that H. M. Vaile was made treasurer, and that all the other partners agreed, by suitable powers of attorney, to put the collection of all the money from the Government absolutely in his hands. When he got the money he agreed, first, to pay all the subcontractors; second, the expenses necessary and incident to the proper conduct of the business; third, to divide the profits remain-, ing among the parties as provided in that contract. The profits were to be divided as follows: From routes in Indian Territory, Kansas, Nebraska, and Dakota, to H. M. Vaile, one-third; to John R. Miner, one-sixth; to John M. Peck, one-sixth; and to John W. Dorsey, one-third. From routes in Montana, Wyoming, Colorado, New Mexico, Arizona, Utah, Idaho, Washington Territory, Oregon, Nevada, and California, to H. M. Vaile, one-third; to John R. Miner, one-third, and to John M. Peck, one-third. Before any division of profits was to be made, the sums which before that time had been advanced were to be paid to the parties so advancing such sums; and if the profits were not sufficient to repay the entire sums so advanced, they were to be paid from time to time during the existence of the life of these contracts. Now, you will find that such contract was made on the 16th day of August, 1878, and that Mr. H. M. Vaile then took absolute and complete control of every one of these routes, and the only thing they asked of him was to repay the money that had been advanced, which, as you know, and as I have told you, was the sixteen or eighteen thousand dollars by S. W. Dorsey, the ten thousand dollars by Peck, and about the same amount by John W. Dorsey. Now that is understood. At that time certain papers were executed by all the parties. I told you that a law had been passed by virtue of which a man could make a subcontract and have that subcontract put on file, and thereupon he could be protected by the Government. Now, when H. M. Vaile took these routes, and they were to be managed by him, subcontracts were made by the other parties to Mr. Vaile, and Mr. Vaile put those subcontracts on record. Now you can see that they gave him the absolute and entire control of every route. That was the condition. I have explained to you the the liability of a contractor. He cannot put it off on a subcontractor. He is the man primarily responsible to the Government during the life of that contract, and for six months thereafter. Whenever a contract is awarded to any person, he is regarded as the original contractor, and his name is kept upon the books of the department during the life of that contract. No matter how many subcontracts may be made, he is looked to primarily if there is a failure of a a trip, or if there is a failure of the service, and he is responsible for its complete performance. If there comes some great storm and the road is obstructed by snow, or if the bridges are all carried away by flood, and the subcontractor throws down the contract, the original contractor must be ready to take it up; and if he fail to do so, he can be fined three times what he has received for each trip. There is one case in one of these nineteen routes, gentlemen, where the fines exceeded the entire pay simply because they did not carry the mail according to the contract. Now, then, these parties finally made a settlement and they divided these routes. They divided them. They ceased to have any interest in common. Recollect, that was in April, 1879. I want you to know it because this entire case depends on your knowing it. This entire case, gentlemen of the jury, depends on your understanding it. In April, 1879, Mr. Vaile having had possession of these routes for several months, a division was made of them, and all interest in common was at that moment severed. At this time, I say, these routes were divided, and all partnership and all partnership interest was absolutely destroyed. I want to tell you why. When Dorsey returned from New Mexico and found that his orders on the Post-Office Department had been superseded by subcontracts and that his collateral security was worthless he was indignant, and at that time he and Mr. Vaile had a quarrel. He did not think he had been properly treated, and for that reason the moment he got the note at the German-American Bank provided for, the moment he induced Mr. Vaile to assume the payment of that note, he gave evidence that he wanted a settlement. Not that he wanted the routes divided at that time, because he did not dream of such a thing. He wanted the settlement. He wanted his money. The arrangement that had been made with Mr. Vaile was unknown to Mr. Dorsey, who at that time was in New Mexico; and, as I told you before, when he returned and found that the note that had been given to the German-American National Bank was protested, and found, as I told you twice, his collateral security was worthless, he wanted a settlement. He wanted his money refunded to him. They said to him, "We haven't the money. We have just got the stock really upon these routes. We have just got under way, and we cannot pay out the money." "Very well," said he, "what will you give me?" I want you all to see that this was a simple, natural, ordinary proceeding. Said he, "I want my money." Said Vaile to him, "We haven't the money, but I will tell you what we will do. We will divide the routes with you." Now, recollect at that time that they had a hundred and thirty-four routes, and had given some of them away. At that time they agreed upon a division, and they agreed how that division should be made. We will prove the agreement to you. The agreement was that Mr. Vaile should choose first, taking the route he wanted--he and Miner being together at that time--that Mr. Dorsey should choose the next, and Mr. Miner should choose the third route; and then that Mr. Vaile should choose the fourth, Stephen W. Dorsey the fifth route, Mr. Miner the sixth route, Mr. Vaile the seventh route, and so on. They finally concluded it would be fair for Mr. Vaile to take the best route, Dorsey the next best, and Miner the next best, and then again Vaile the best, Dorsey the next best, and Miner the next best, and that that would be an average that would do justice to each. In that way, gentlemen, they divided these routes. There was no conspiracy; nothing secret. This division was made on the 6th day of April, 1879, not only after Dorsey had gone out of the Senate, but after he had advanced this money, after they had failed to repay him, after he had failed to collect it, and when he finally had said, "I must have some settlement that recognizes my claim." Gentlemen, I want you to know that. In this case that fact will be one of the great central facts. On the 6th day of April, 1879, these routes were absolutely divided, and after that they had nothing in common. But you recollect that these routes were divided by chance. Mr. Vaile chose the first route. He might choose a route that had been bid off by Peck, or he might choose a route that had been bid off by John W. Dorsey. Stephen W. Dorsey took the next route, and that might have been a route that had originally been awarded to his brother, or to Peck, or to Miner. You can see how that is. The division was here complete. Mr. Miner did not have the routes he had bid off and that had been given to him by the Government. Mr. Vaile came in, and as Mr. Vaile was not an original bidder he took routes that had been awarded to Miner and to Peck and to John W. Dorsey. By the division Stephen W. Dorsey came into possession of routes that he never had bid off, because he never bid for one. Consequently as he went along with those routes, he needed and he had oftentimes the affidavit or the certificate of the original contractor. That was a necessity. Otherwise the division could not have been carried out. Anything that arises from the necessity of the case does not tend to show any conspiracy or any illegal partnership. I hope you understand perfectly that on the 6th day of April, 1879, these routes were divided and Stephen W. Dorsey took his share because they at that time owed him between sixteen and eighteen thousand dollars.

What more did he do, gentlemen? He agreed at that time that he would refund to John W. Dorsey all the money he had expended. That amount was about ten thousand dollars. It was nine thousand and something. He also agreed that he would refund to John M. Peck, who is now dead, the money he had expended, which was between nine and ten thousand dollars. He also agreed that he would take the routes for the money he had expended, and that was between sixteen and eighteen thousand dollars. So, when those routes were turned over to him they were taken in full of over sixteen thousand dollars advanced by him, ten thousand dollars that he was to give to his brother, and ten thousand dollars that he was to give to John M. Peck--in the neighborhood of thirty-eight thousand dollars in all. Speaking of the sum without interest it amounted to thirty-six thousand dollars. Those routes were turned over to him. Gentlemen, it was not done in secret. When that division was made, the law having provided no way for A to assign a contract to B, that assignment had to be accomplished by a subcontract, and consequently subcontracts had to be given to Vaile, subcontracts to John R. Miner, and subcontracts to S. W. Dorsey, and yet the original contractor was still held by the Government. When the subcontract was made, it was for the entire amount of the pay; not one dollar remained for the original contractor. Now, I want to state to you what we are going to prove about that. After the division was made, to show you the interest taken by the arch-conspirator, we will prove these facts: That when the routes awarded to him by chance, on the 6th day of April, 1879, had been awarded, he left the city of Washington in a few days, and went to New Mexico; that he returned here on the 15th or 16th of May; that he left again on the 19th of May, and went to Arkansas; that from Arkansas he went to New Mexico, and returned to Washington on the 21st day of June, and that on the 27th of June he left for New Mexico. The next time he visited Washington was in July of the following year, 1880. He remained here one day, left and returned again to witness the inauguration of General Garfield. From June 27, 1879, up to the present hour I challenge these gentlemen to show that Stephen W. Dorsey ever wrote one line, one word, one letter, to any officer of the Post-Office Department. I challenge them to show that he ever took the slightest interest in any star route, or said one word to any human being about that business, except in explanation when attacked by the Government or in the newspapers. Now, gentlemen, after the division of these routes what did Stephen W. Dorsey do? This is a story, complicated, it may seem, perfectly plain when you understand the surroundings. It is a story necessary for you to know. After he got these routes what did he do? Did he want them? Did he want to engage in carrying the mail of the United States? Was that his business? At that time he had a ranch in New Mexico where he was raising cattle. That was his business, and is up to to-day. Did he want to stay here? Did he want to attend to these contracts? That is for you to determine. Did he want to enter into some partnership by which the Government was to be fleeced? That is for you to say. I tell you he had another business. I tell you he had a ranch in New Mexico, and we will prove it to you, and that ranch was of more importance to him than all the star routes in the United States. We will show you that at that time he could not have afforded to waste his time on these routes; that the business he was then engaged in was too profitable to waste any time in the mail business. Profitable as these gentlemen appear to think it was, what did he do? Just as soon as he could make the arrangement he went to a gentleman living in Pennsylvania by the name of James W. Bosler. Who is Bosler? He is a man well acquainted with the business of contracting with the Government. He has been in that business for years and years. He is a man of ample fortune, excellent reputation, considered by his friends and neighbors to be a gentleman and an honest man. He went to him. That we will show you. He said to Mr. Bosler, "I have advanced money by the indorsement of a note. I am in a business that I do not understand. We have had to divide the routes in order for me to have security for my debt. I want to turn these routes over to you. I am not acquainted with the business of carrying the mail. I know absolutely nothing about it. I want you to take it." How did he turn it over? We will show. He said to Mr. Bosler, "You take all the routes that have been given to me; every one. You run them and you pay me back my money, and then we will divide the profit." Mr. Bosler said he was not very well acquainted with post-office business, but he understood how to transact any ordinary business, and he would take them. That is all there is to it. He took the routes; every one. I believe that he took absolute control within a few months of the 6th day of April. I do not know but the warrants for the first quarter were paid or came in some way to S. W. Dorsey. But for the second quarter Mr. Bosler took them, and from that day to this Mr. Bosler has controlled those routes. He has carried every mail or has contracted with the man who did carry it. Every solitary thing that has been done from that day to this has been done by him. Every dollar has been collected by Mr. Bosler, and every dollar has been disbursed by Mr. Bosler. And before we get through I am going to tell you how all the routes that were given to Mr. S. W. Dorsey came out. Let me tell you how they came out. Mr. Bosler has carried the mail, paid the expenses, kept the accounts, and, gentlemen, I am going to tell you how much he made out of this vast conspiracy that has convulsed that part of the moral world that has been hired and paid to be convulsed. I am going to tell you exactly how we came out on all this business. I will give you the product of all this rascality, of all this conspiracy, of all the written and spoken lies; I will tell you our joint profit on this entire business; a business that promised to change the administration of this Government; a business about which reputations have been lost, and no reputations will be won; counting it all, every dollar, and taking into consideration the midnight meetings, the whisperings in alleys, the strange grips and signs that we have had to invent and practice, you will wonder at the amount. I will give it to you all. Mr. Bosler has kept the books, has expended every dollar, collected every warrant, and I say to you to-day that the entire profit has been less than ten thousand dollars, not enough to pay ten witnesses of the Government. Our profits have not been one-fiftieth of the expense of the Government in this prosecution--not one-fiftieth, and I say this, gentlemen, knowing what I am saying. It is charged by the Government that these gentlemen were conspirators; that they dragged the robes of office in the mire of rascality; that they swore lies; that they made false petitions; that they forged the names of citizens; that they did all this for the paltry profit of ten thousand dollars. That is what we will show you. And the moment this reform administration swept into power they cut down the service on these routes. They not only did that, but they refused to pay the month's extra pay, and they committed all this villainy in the name of reform. And do you know some of the meanest things in this world have been done in the name of reform? They used to say that patriotism was the last refuge of a scoundrel. I think reform is. And whenever I hear a small politician talking about reform, borrowing soap to wash his official hands, with his mouth full and his memory glutted with the rascality of somebody else I begin to suspect him; I begin to think that that gentleman is preparing to steal something. So much, then, for the conspiracy up to this point, up to the division of these routes in 1879. Now recollect it.