The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-06
Charged with Conspiracy to Defraud
the Government I'm the Purchase
of Mail Pouches.
AUGUST W. MACHEN INDICTED
ACCUSED BY THE GRAND JURY OF
ILLEGALLY RECEIVING $1s,9S7.
inspectors on the Trail of Other
WrongdOers-Annual Postal Deficit
Probably Due to Frauds.
Special to the Indianapolis Journal.

Special to the Indianapolis Journal.
WASHINGTON, June 5.-The arrest of
Thomas W. McGregor and c. Ellsworth Up
ton, two clerks in the rural free delivery
service, on a charge of conspiracy to de-
fraud the United States government In the
purchase of pouches from Charles E. Smith,
of Baltimore, and the formal return of an
indictment against A. w. Machen, were
the overshadowing developments in connec-
ton with the investigation in the Postofice
Department to-day. The complaint against
agreed with Smith to obtain for him or
ders for leather pouches, such as are used
by carriers on rural routes. The price paid
for each pouch was 80 cents; the actual
value less than so cents. The government
purchased about 10000 pouches. represent
ing an outlay of $4,000 OF this amount
Smith, the manufacturer. retained $4,000,
and it is alleged that McGregor and Upton
received 5000.
McGreSOT anu Optou WciC tdhch iiieo
custody this afternoon on warrants issued
in Baltimore The officials decline to say
what proceedings will be taken against
Smith. In view of the strong statement
that he was the bribe-giver, the inference
is drawn that ii was upon information fur
nished by him that the arrests were made
1t is therefore assumed that he will turn
States evidence. When questioned as to
whether A. W. Machen, former superin-
tendent of free delivery, had any connec-
ton with this latest charge of bribery. Mr..
Bristow, the fourth assistant. declined to
state AS Machen was the superior officer.
and made the direct recommendations to the
first assistant on which was based the au-
thority for the purchase of supplies the i'm
preston prevails that an inquiry is foot
to determine whether Machen is involved
in the transaction of the two clerks.
While the postoffice inspectors were To-
eating McGregor and Upton the federal
grand jury was in session. and late in the
afternon returned an indictment against
Machen. their former chief. The indict-
ment is of unusual length, and embraces
nine counts 1t is practically a recital of
the complaint filed against Machen at the
time of his arrest. 1t outlines the alleged
agreement between Machen and the Croft
Brothers, giving the amounts said to have
passed between them, the date of the trans
action and other details concerning the
matter.
THE GAME OF GRAFT"
1t is impossible even for the postoffce
officials TO determine just how extensively
the game of graft has been practiced
in the department in the past. Enough has
already been discovered to warrant the as
sertion that Mr.. Bristow and his inspect
ors anticipate further disclosures as SEN
sational those that have gone before.
Grave suspicion is directed toward Machen
in connection with contracts for supplies
authorized during his administration OF the
free delivery service. Where the trail will
| lead TO and how many may be involved is
q matter OF conjecture. That other arrests