Daily Kennebec journal., 1903-08-01
Z. LATEST SENSATION
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fraud the government. Crawford was
deputy auditor for the post office de-
partment from June II, 1898 to Sept.
Is, 1897.
In 1901, Machen entered into an
agreement with Maurice Runkle of
New York, to furnish a small leather
case for the free delivery service for
which the department paid 80 cents
each. This contract was entered into
without competition and the cases cost
Runkle about 80 cents each. The in
spectors have conclusive evidence that
Kunkle divided his profit of 60 cents
per case with Machen and McGregor.
This is analogous with the Baltimore
case in which McGregor and Upton
figured and have been both indicted.
Machen, Runkle and McGregor have
been indicted in this case.
I'm 1898 through the free. delivery
division, a contract was made with Leo
pold ]. Stern of Baltimore, for car
riers' satchelS. The specifications re-
quired Stern to furnish complete satch-
els including the shoulder straps, the
shoulder strap being specifically de-
scribed as part of the satchel and to
DG III ny Tic GULL dClOI. kAIlCI
the contract was entered into, Stern
was relieved by Machen from furnish
ing the strap, the full price being paid
for the satchels. In consideration of
being relieved from furnishing the
straps by Machen, Stern paid to w. c.
Long Il large amount of money which
Long divided with Machen. The
straps which Stern had been relievel
from furnishing were purchased by
Machen from a New York firm without
competition.
He required this New York firm.
however to pay commission of four
cents per strap which commission was
collected by w. c. Long and divided
between Long and Machen. In this
transaction, Machen not only secured
money from Stern for relieving him
from furnishing the straps which he
had contracted to furnish, but required
the man from whom he bought the
straps to pay him a commission on
the straps which he was giving to
Stern. Long was used as the inter-
mediary in both transactions. Over
$4,000 was paid by the department
for straps that were furnished to Stern,
though stern ndu cOHtIdCleu " LII
nish them himself.
Long, Machen and Stern have been
indicted in this case for conspiracy to
defraud the government
1.-THE department, through the free
delivery division, entered into an agree
ment with John I. Cupper of LOCK
Haven, Pa, to furnish material and
paint all the letter boxes, package box
es and letter box posts in the United
States for which he was to receive 20
cents for each post, so cents for each
letter box, and 81 for each package box
The terms allowed Cupper were far in
excess of the former cost of painting.
"The boxes in some of the cities
were painted frequently, several
times every year, while in small
er cities in the more romete sec
tions of the country they were
painted not to exceed once in five or six
years. A part of the money which
Cupper received from painting the box
os. he paid to w. C. Long, who divided
it with Macnen.
1.-The contract with the manufactur-
ers of letter boxes requires them to
paint the boxes, yet Cupper was order
ed by Machen to paint the boxes at the
factory and the department has paid
him over $4,000 for his unnecessary
painting Cupner Paid Long part Of
this money, who divided it with Machen.
"Cupper, Long and Machen have been
indicted for conspiracy to defraud the
government"