Congress started investigations into the
Star Route postal delivery service in 1872 in the Grant
administration and these continued until the prosecution trials
during the Arthur Administration when the fraudsters were
prosecuted and the Star Route postal ring was shut down.
Star Route Scandal for kids: What were the Star Routes?
Definition: A Star Route was
the name given to a postal delivery route served
by a private contractor.
Star Route Scandal for kids: The US Postal Service
By the mid 1800's most of the mail in the United States was
transported by steamboats and the railroads, however
these methods of transportation had yet to reach the
isolated regions of the new territories in the West and
South West. The federal government therefore offered
lucrative contracts to private carriers to deliver the
post via horse, wagon or stagecoach.
Star Route Scandal for kids: History of the Star Routes
The history of the Star Route contactors dates back to
an act of March 3, 1845. This legislation established a
new mail service that called for private contractors to
carry the mail "with celerity, certainty, and security".
Contracts for the mail service were awarded to the
lowest bidders. These became known as “celerity,
certainty and security” bids. Postal clerks shortened
the phrase to three asterisks or three stars (***). The
mail delivery contract bids became known as star bids,
and the routes became known as Star Routes.
The
Star Route Scandal for kids: Fraud, Bribery and Corruption
By 1880, there were nearly 10,000 star routes, costing
the federal government nearly $6 million a year. The money and
enormous profits involved in landing these contracts led to fraud,
bribery, collusion and corruption implicating the contractors,
postal officials, government officials and politicians. The extent
of Star Route Scandal would rock the nation, already reeling from
the scandals caused by the
Spoils System
and allegations of
Grantism
involving political corruption and greed in government.
The
Star Route Scandal: How the Frauds worked
Typically, the Star Route contracts were awarded for
four-year terms. The frauds worked as the contractors employed
numerous methods to obtain the lucrative postal contracts.
Bribes were exchanged
in return for contracts
Fictitious Delivery
Routes
Unnecessary
expenditures - Claims for improvements to non-existent
of scarcely used routes
Illegally increasing
mail rates
Some Contractors took
the money but didn't deliver the mail
Collusion: Contractor
colluded to submit low "straw" bids or ridiculously high
bids - default bidding resulted in highly lucrative
contracts
Exorbitant fees were
charged
Star Route Scandal Investigations and Trial
The Star Route Scandal
investigations took place in 1872 and 1876 under President Grant and
the frauds were temporarily halted but emerged again during the
Hayes and Garfield administrations sparking more investigations. A
federal prosecution and trial took place in 1882 urged by President
Chester Arthur, that was finally able to shut down the postal ring.
The investigations led to 25 indictments and although the trials
revealed frauds on nearly 100 Star routes, no convictions were
obtained. The Star Route scandal had been defrauded the Post Office
of $4,000,000. |