The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-06-06
MAcHEN is INDICTED.
But He insists That His Fleece Is White
as Snow.

WASHINGTON. D. c.. June 5.-The
grand jury today reported an indictment
against August W. AIachen, former su-
perintendent of the free delivery service,
charged with sharing profits on govern
ment contracts for letter box fasteners.
The Indictment was brought for violation
of section 5501 Of the revised statutes.
| the penalty for violation of which is a
fine Of not more than three times the
amount asked or accepted or received, and
by Imprisonment of not more than three
years.
The amount which the Indictment states
he received Illegally is $18,9S7. 79. Mr..
gave bond in the sum Of $4,000 for his
| appearance. The trial viii occur in Oc-
tober.
By securing an Indictment against Ma
chen before tomorrow, the day set for
his preliminary hearing before Commits
i sioner Taylor, the government has secured
a victory in that it has avoided the neces-
Sity Of showing its hand at the prelimfn-
| ary hearing. The proceedings before the
| commissioner now viii be abandoned.
MIR. Machen says that certain checks
in payment of his profits in the Croft
fastener, and which have been secured by
the .postomce inspectors, were sent him
by his former business partner, George
z. Lorenz, Of Toledo, Ohio. formerly post
master of that city.
Mr.. Machen Claims that his partnership
with Lerenz was strictly legitimate one,
and that the checks were in connection
with mining business which the firm con-
Quoted. Mr.. Machen says that the one
for the largest amount represents per-
sonal loan to himself from Lorenz
Mr.. Machen states that he was not a
partner of the Croft Bros. concern and
/ that he did not receive any Of the
profits from the. sale, Of the letter box
fastener; that no wrongdeing will be
proved against him and the only possible
cause there may be for criticism of his
administration so far as the Croft fastener
is concerned is that the price paid for
the article may be considered excessive
This was necessary, he maintains, because
/ the article was patented affair and the
larger price paid for 1t was in line with
the universal practice in the purchase of
articles which are patented and where
there Is no competition. HIS counsel to-
day issued a statement in which he COM
plains because Mr. Machen was refused
an opportunity for public hearing be-
fore the United States commission.
The indictment embraces nine counts
and follows closely. the form of the war
| rant upon which Mr.. Machen was arrest
ed, recitfng his connection with the post
office department., his duties in connec-
ton with the purchase of supplies, etc,
and the fact Of the sale of letter box
fasteners to the government by Croft
Bros. upon his advice and recommended
ton The grand jurors find that upon
June 80, 1900, Mr.. Macnen, with intent
to have his decision and action as super
intendent of free delivery in regard to
purchase of Croft fasteners Influenced
thereby, did ask of the Croft brothers
promise that they would nay to him 40
per cent OF any sum winch might be re-
ceived by them thereafter from the United
States through the poStoff1ce department
In payment Of such fasteners the pur-
chase of which might be procured upon
Mr. Maehen's advice. and did receive the
promise of the Croft brothers in accord
ance herewith" The Indictment recites
that In pursuance Of this collusive under
standing Mr.. Macren received upon the
various dates specified in the original
warrants the sums stated at that time
aggregating in all about $4,000.
1t Is expected by the postoffice depart
ment that the grand jury viii report on
the cases Of the Croft brothers early next
week.