The daily morning journal and courier., 1903-09-12
POSTAL FRAUDS GALORE
PARTICULARS OF THE SIX NEW
 INDICTMENTS.
Names Of the Men Indicted Given Out
 Beavers and aIacheR the Principal Grafters-way in Which scheme Was
 Worked to Fleece the Government

Worked to Fleece the Government
 Story of Rank CorruptioD.
 Washington, Sept. 11.-United States
 District Attorney Beach to-day an-
 nounced that six persons named in the
 seven indictments returned by the grand jury last Tuesday are:
 George W. Beavers, former chitf of
 the division of salaries and allowances.
 postoffice department. August w. Machen, former general superintendent of the free delivery sys- tenn, postoffice department.
 James W. Erwin, former postoffice in spector, with headquarters in San Fran l cisco. 4. .-.s .... -..-.. George H. Huntington and Isaac $.
 McGiehan, both of New York city, own
 CTS of the Columbia Supply company of that city. .s .s Eugene D. Scheble, of Toledo, Ohio, a
 dentist and interested in the firm of
 Maybury & Ellis, of Detroit, Mich., let ter-box manufacturers. ., .as The official statement regarding the indictments follows: ..-
 ''The indictment against Beavers,
 Machen and Erwin alleges in substance that the Postal Device and Improve
 ment company, of San Francisco, Cal., formerly the Montague Indicator and
 Letter Box company, by resolution of
 October 6, 1899, set aside one thousand shares of it's stock to be used in any legitimate way it's president might think proper, in forwarding the inter ests of the company. Armed with this authority, the president, Daniel s. Rich ardson, accompanied by Erwin, came to Washington. Erwin was then post office inspector and tn ecompany was
 composed almost entirely of postoffice
 employees In the west. x 5.9
 Erwin introduced Richardson to all the postoffice officials at Washington,
 and Beavers, Machen, Heath and oth- CTS examined the device. As a result
 an order for equipping 2,0S9 letter boxes with the device was secured. About this time, on a suggestion from Beav-
 CTS. concurred in by Machen, the name of the company was changed and it was arranged that all postoffice officials should disappear from its management.
 Beavers and Machen became the own CTS of blocks of the stock, both under assumed names
 "Tle company was then systematical- ly relieved of it's obligations in the way of paying freight. crating, painting and printing cards for the device it was fur nishing. Out of the one thousand shares of stock set aside, as above mentioned, most all of it went to different postoffice officials. The president of the company afterward came to Washington again, with the request that an increase be made in the compensation the company was receiving for its device. This re quest was granted. Dividends were af-. l terward paid on the stock.
 "The indictment against McGiehan, 1 Huntington and Machen. alleges that Mcclellan was the person interested In l the profits from certain contracts from i the United States for Furnishing pack age boxes from July 1. 1923, to June |, I 1927; that in pursuance of scheme to defraud the United States, Machen rec commended to his superiors that com nensation to the contractor be increas- ed. in payn1en for attaching a different support to the boxes, which raised them higher from the ground. This scheme was put through and afterWard. when Huntington became interested in the contracts with Mcclellan. they contin- | ued to receive the extra compensation. The indictment is in ten counts, the first two charging the payment of $1O0 ! to Machen on September il. 1900: the third and fourth counts alleging the payment Of $250 on December 30. 1900; the first and sixth counts the payment
 os s250 February 4, 1901; the seventh and eighth counts the payment of $350
 counts the payment Of s225 on March 15. 1901. e s5s
 "The other indictments against Me-
 Giehan, Huntington and Machen is in
 fifteen counts, on the same facts as set forth in the first indictment. the
 charge being conspiracy to bribe an of
 f1cer of the United States.
 "The indictment against McGiehan and Huntington for bribery, alleges that Machen procured the payment of SIPS on each of the package boxes ad- ditional to the contract, for the device which lifted them higher from the ETOunQ, Wflefl IHe SuIu pdlu dOT lIldL dL- tachnent should not have exceeded sev- enty-five cents. McGiehan agreed to pay Machen fifty cents from each $1.25, with the concurrence of Huntington, who was then interested in the contracts with McGiehan, as The Columbia Sup- ply company, for his own personal use.
 "The indictment against Scheble and
 Machen alleges that Eugene D. Scheble
 of Toledo, O.. became interested with
 the firm of Maybury & Ellis of Detroit,
 Mich, of which town Maybury is the
 mayor, in certain contracts with the
 United States for furnishing letter
 boxes. That in pursuance of their
 cheme to defraud the government
 Machen induced the department to or
 der large quantities of letter boxes for
 the rural free delivery service; uuan-
 titles far in excess of what was needed
 or wha could be used: and that
 Machen, in his official capacity, ap-
 proved she bills for the same. May
 bury and Ellis paid Scheble, to the ex-
 tent of his interest in company; and he in turn, paid large sums to Machen.
 The indictment is in seventeen counts, the first three charging the payment by Scheble to Machen of fifteen hundred dollars on September 21, 1900: the fifth, sixth and seventh counts charge the payment to Maechen of $50 on Septem- Der "A, 1900. The eighth, ninth and +ea aI, +a