The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-30

tIoit, Mich. Machen became superin-
tendent Of free delivery in the follow
ing September. six months after the
contract had been executed.
Maybury states that not many
months after Machen's appointment
Eugene d. Scheble, a dentist of To-
ledO o., called on him and interested
him in a patent he had acquired for
new letter box. Maybury agreed to
give Scheble a % per cent interest in
the contract which he then held May
bury, when asked why he gave SCheble
an interest in this contract. stated that
he thought there was merit in Sche-
ble's box, and that II might in the flu
tUre become a troublesome competi-
tor.
It is not reasonable to suppose that
a man of affairs like Maybury. who
had at that time served two terms in
congress and is at present mayor of
the city OF Detroit. should voluntarily
deliver TO a stranger from Toledo. o.,
one-fOurth OF his profits in so valuable
a contract because he feared that two
or three years hence that man might
become dangerous competitor for an
other contract.
During the first year, that is, before
Scheble had interested himself in the
4 contract, there were 2,74O boxes or
dered for which the department paid
s., 1S9.40. Maybury's profits, as near as
can be estimated, amounted to S3,425
on that years business During the
/ second year, after Scheble became in
/ terested, 10. 400 boxes were ordered, at
a cost of $50, 526.25. The total profits
of the second years business was $20,-
500. of which A1aybury received three
fOurths. or s15,375, and Scheble one
fourth, or S5,215.
In 1897, when a new contract was to
be made, the box which Maybury had
acquired from Scheble, known as the
Scheble box, was the one selected. and.
as a result, Maybury & Ellis were re-
| qUired to give him a so per cent in
/ terest in the new contract. The evil
ldence shows that Scheble RENTED one
/ half of his profits in this contract to
Machen.
One Solomon c. Wynn submitted a
proposal to furnish the various sized
( boxes at S1.75, $2.25 and $2.75, as against
I the Scheble box at $3.50, 1925 and S5.25
each. Wynn, therefore, became an
embarrassing competitor. But Machen
was equal to the occasion; he stated
| to Postmaster General Wilson that he
/ had a cousin, Arnold ]. J. Machen, Of
/ Toledo, o., who was interested with
/ Wynn in this box, and that he did not
/ think it proper for the contract to be
awarded to a firm in which a relative
Z Of the superintendent of free delivery
was financially interested. The post
master general evidently was i'm
/ pressed by the unselish devotion OF
I Machen to the public interests, for
\ Wynn's bid was discarded, though in
/ doing so the cost of letter boxes during
! the contract period was increased $751;
/ $3.50 The profits on this contract to
/ Maybury 6, Ellis aggregated something
/ over $50, 600, half of which was given
\ to Scheble, which the evidence indi-
| Gates was divided equally with Maehen.
/ During the past four years $1,000 let
] ter boxes have been distributed on ru-
! raj routes. They are unnecessary, since
I every farmers letter box serves the
/ purpose Of both a deposit and col
/ lection box. Postmasters wrote fire.
quently stating that the boxes were Of
no use. that in many Of them there
was not a letter deposited once a
month Nevertheless, Machen contin-
ued to have them erected, and during
the last four years over $4,000 has
been paid for letter boxes on rural
/ routes.
I Machen and Scheble were indicted by
the federal grand jury in the District
of Columbia Sept. s, 1903. for conspir-
I acy and fraud.
Package Boxes.
The large boxes fastened to the letter
box posts or other supports are styled
| package boxes. They were first con-
tracted for in 1898. Isaac Mcclellan
was the real contractor at that time
and has been since.
/ In 1897 Solomon G. Wynn, whose bid
for letter boxes was thrown out upon
the fiction that Machen had a cousin
/ interested with him, was also a bidder
1 on package boxes, and offered to sup
ply them for $3.50 each. But the bid
I was set aside with five others, ranging
in price from 81 to 50 per box, and the
/ contract given to Mcclellan at $1,000.
The evidence shows that Mcclellan
paid Machen a royalty" of so cents a
/ box. Mcclellan and Machen have both
been indicted.
The Montague Indicator
The Montague indicator is a device
attached to street letter boxes showing
the hours of collection. 1t was pro-
noted by w. w. Montague, postmaster
at san Francisco, Cal, and d. S. Rich
Z ardsOn, a cashier in that Office.
A company was organized in 1899
/ with a capital stock of $780, 900, con-
I sisting of 10000 shares, par value IS.
Immediately after the company was
/ organized, Richardson and James w.
Erwin. at that time a pOstofice in
b
purpose Of securing the adoption of
the device by the postoffice department.
( Richardson consulted George w. Beav-
ers, who told him that to insure sue
cess he ought to distribute stock
among the officials who had charge of
! the matter. Acting upon this sugges .
ton. Richardson gave Machen 1 900
shares of the stock, who requested that
( it be issued in the name of H c. Sc
ger, and Beavers 1000 shares that were
/ issued in the name Of Richardson. A
short time after this gratuitous dis
tributiOn Of stock an order was given
for 1000 indicators, at $4.25 each.
Seger, in whose name the stock do
! mated to Machen was issued saws he
bought this stock from Machen and
paid him $1,000 for it. There is a mys-
terry about the true ownership of the
1000 shares given to Beavers. It was
issued in the name Of D. S. Richardson.
and at Beavers suggestion assigned
to John r. McDOnOugh. The first divi-
dend, consisting of $12O. was forward
ed to Beavers Feb. 6. 1901, and ac-
Ilnowledged by him in the following
letter:
/ Personal.
Washington. Feb. 20, 1901.
My Dear Mr.. administrations OF
Feb 6. with Enclosure, duly received. I
will hold the papers in your name for
the present until something decisive is
known. I am glad to know that the
matter promises so well. I have not
seen Mr.. Heath, but will make an
other effort today. He is mighty hard
| to locate just now, being busy on ma
tional committee matters Give my
regards to all inquiring friends, and
believe mo