The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-06-12
MACHENS MENTIONED
At BALTIMORE HEARING
Brothers Accused of Sharing
Mail Pouch Graft.
TESTIMONY OF C. E. SMITH
Contractor Testif1es That Bags Sold for
GO Cents Might Have Been Sold
for 40 Cents.
special to The Washington Times.)

BALTIMORE, June 12-George w
McGregor and c. Ellsworth Upton were
held in $1,000 bail each yesterday by
United States Commissioner Rogers at
Baltimore on the charge of conspiring
10 defraud the Government in the pur-
chase of rural free delivery mail pouch
es. The principal evidence against
hem was furnished by c. E Smith. a
Baltimore dealer in leather goods, who
testified that Upton made the arrange
ment with him whereby he was to
charge the Government 80 cents per
pouch and pay Upton and McGregor 10
cents on each pouch.
1t was expected as a matter of course
hat the two men would be held and
it was anticipated that Smith would
estify against them, but what was not
expected was that A w Machen, the
dismissed and indicted superintendent
OF free delivery, would be publicly
mentioned at the trial as sharing Ia
the graft" Smith, in testifying, said
that when the first warrant for 1850
arrived in payment for the pouches he
deposited it in a bank and drew $4,000
against it. This money, he said, he
paid over to Upton and McGregor and
that Upton told him that it would be
divided between Upton, McGregor, 4.
W. Machen, and Machen's brother
Approved by High Officials.
McGregor was Machens special pro-
tcge. He advanced him from one position
TO another and frequently remarked that
he discovered and made McGregor.
Smith admitted that the pouches cost
him on the average only about 35 cents
and that he would have let the Govern
ment have them at 40 cents. but that
Upton told him to make bid of 80
certs and that influence would get him
the contract. District Attorney Rose
produced letters from Representative
Frank c. Wachter and ex-Representa-
t;ves Schirm and Blakeney recommend
ing Smith as good citizen well worthy
CT receiving a public contract
The witness admitted that when he
was first questioned by the inspectors
he lied to save Upton and McGregor. but
the inspectors persisted and he soon
found that they knew too much for him
~ attempt 10 LldhS any cOHCedimGGL, SO
he made clean breast of the whole
affair.
Not Alarmed by Machen's Arrest.
Detailed accounts were given by the
witness of three occasions on which
warrants for $500 each were received
by him for the pouches. and & 900 of
each warrant turned over TO Upton and
NcGregor Upton warned him about the
first of the year that inspectors might
come around and that Smith was TO
steer them off,
Tie last time Smith saw Upton was
the day Machen was arrested for getting
rake off, from the Croft brothers on
the rural free delivery mailbox fast
eners. They talked it over. and Upton
said ii would be all right.
Smith claimed that he went into the
Ceal merely as a matter of business.
and also said that he lied to the inspec-
tors for the same reason. Smith got
comparatively little out of the deal
The pouches cost him 80 cents ne was
willing 20 sell them for 40 cents, and
by his arrangement he got so cents, but
II was a year after he bought the first
lot or pouches before he made a sale
to the Government Because he has
made what ne purports TO be clean
breast of the affair and has appeared
against the two men, ii is thought he
Will not be prosecuted