Beginnings According to
The Hobart Index: The Commonwealth, a local newspaper, in March 1936, the government requested bids for the construction of a new post office. Although the first Hobart post office appeared about 100 years earlier, this was the city's first federal building. Each interested applicant could obtain one copy of drawings and specifications for the building, which required return to the government. Companies that "consistently failed to submit proposals" were not furnished with specifications. All proposals were to be publicly opened on April 15, 1936, in Washington, D.C. Additionally, "the new structure [was] to be erected on the east side of Main Street between 2nd and 3rd on ground purchased from the Killigrew estate" for $9,000. The term "condemnation proceedings" refers to eminent domain, in which the government is able to take private property for public use upon compensation to the owner. The next day, Joseph Mellon, the Hobart Post Office postmaster, stated that the formal awarding of the contract was to be expected soon, meaning work could start on the building as soon as late July. The contract required the corporation to start work on the building within 30 days of the formal award and allowed 250 days for the completion of the project. Part of the remaining details included subletting the contract and buying materials. Murphy explained that he "planned to buy practically all materials for the construction work locally, as well as hire all local help possible on the job". Furthermore, Murphy granted the plumbing contract to Gary Heating and Plumbing and had intentions of subletting the "electrical, roofing, excavating, and foundation work". According to Robert Adams' and Dorothy Ballantyne's book,
Along the Route: A History of Hobart, Indiana, Post Offices and Postmasters, ::Hobart was a fast Republican Party stronghold in a Democratic Party county and, at the time, a Democratic federal government. Dyed-in-the-wool Republicans were a bit dubious about accepting Democratic favors, but pride in a federal building for Hobart grew until, when the building was ready for use, it was dedicated with a great deal of enthusiasm. This setback was not the last, or the most scandalous during the construction of the Hobart post office.
Scandal erupts On Monday, November 16, Don Stewart fled the state with company funds after being fired from his superintendent position for inefficiency the previous Saturday. Per normal routine, Stewart received $400 to deposit into the bank for payroll, early on Friday. However, instead of depositing the money, he kept it, and wrote checks to employees, although he knew the funds were insufficient. After relieving him of his superintendent duties, Stewart's supervisors told him that he would be able to remain on the site and work as a carpenter. However, "when he failed to report to work on Monday along with the fact that several local merchants reported they were holding bad checks, a search was instituted." When authorities called William Krull, the man Stewart had been boarding with since August, they learned "he had departed shortly after daybreak, taking his entire luggage with him and driving away in his car". In addition to being wanted by the Structural Engineering Corporation of New York City, Stewart was also wanted by the Westchester Finance Company of
Valparaiso, Indiana, who held "the mortgage on a used car he had purchased from Roper Brothers Garage shortly before he fled town taking the car with him". Officials of the case believed that he took the entire amount and, ultimately, he was sentenced to a 2- to 14-year sentence at the Michigan City Penitentiary for embezzlement. "Appearing against him were John Murphy, president of the corporation, who came here from New York City to testify, Byron Findling of the First State Bank, Chief Traeger and Ingvald Thompson." In addition, postmaster Joseph Mellon gave a history of the Hobart Post Office. After the ceremony, the building was open to visitors for "a complete round of inspection". ==Mural: "Early Hobart"==