The Dickinson press., 1903-08-08
NEW GAMES OF GRAFT
ASTOUNDING FACTS BROUGHT TO
LIGHT BY LATEST POSTAL
DEVELOPMENTS.

Seven Indictments Returned by the
Federal Grand Jury at Washington,
Charging Nine Persons With Con.
spraey or Bribery-Former Super.
intendent Machen Named Jointly
With Others in Four Indictments.
Washington, Aug. 1.-The postoffice
investigation developed excitement
Friday, the federal grand jury return
ing seven indictments involving nine
persons for alleged conspiracy and
bribery, in connection with postal af-
fairs. August w. Machen, for many
years head of the free delivery service,
was named jointly with others in four
of the indictments. The other men
were William Gordon Crawford, who
was deputy auditor for the postofice
department from June II, 1893, to
Sept. Is. 1897, and Is member of one
OF the exclusive clubs of this city;
Leopold J. Stern of Baltimore; George
E. Lorenz of Toledo, formerly
prominent government official, and
Martha ]. Lorenz, his wife; John T.
Cu2per, mayor of Lock Haven, Pa;
William c. Long, an Ohio man, who
has spent much time in this city in re-
cent years and who is an intimate
friend of Machen; Maurice Runkle of
New York City, and Thomas w. Nc
Gregor, protege of Machen, who was
chens administration of the free de-
livery service and in recent years has
been in charge of the supplies for the
rural free delivery service.
Clandestine Agreement.
The postof1ice department has made
public statement Of the cases which
says in part:
In 1892 the department, through
the free delivery division. entered into
contract with the Postal Device and
Lock company, for the purchase of
carriers satchels for a period of four
years. The manager of this company,
with whom all negotiations were con-
Quoted, was W. g. Crawford Of Wash
ington, D. G. The satchels were to be
made of coated canvas called pegam-
old instead of leather, as formerly.
The specifications Of this contract re-
quired the contractor to furnish straps
the same as in the Stern contract.
George E. Lorenz of Toledo, O., made
contract with Mr.. Crawford to aid
him in securing the contract and to
furnish the straps for a specific
amount per satchel. Pursuant to this
agreement, which was a clandestine
agreement and not a matter of record
In the department. every time the
Postal Device and Lock company was
paid for supply of satchels remit
tance was made by that company to
George E. Lorenz Of Toledo, O., for
his part of the compensation. Mr..
Lorenz, however, did not furnish the
straps. They were furnished by the
department through Machen and paid
for by the department. Crawford,
therefore, paid Lorenz for the straps
which the department furnished, and
Lorenz. to show his appreciation of
Machen's LiberaIlty
in furnishing free of charge the straps,
which he Lorenz? was paid for, divid-
ed his profits with Machen. When
at once remitted to Machen Machen,
Crawford, George E. Lorenz, and Mrs.
George E. Lorenz, in whose name the
money has been deposited, have been
indicted for conspiracy to defraud the
government
Crawford was deputy auditor for
the postofice department from June
IL. 1893 to Sept. Is, 1897.
"1n 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
inspectors have conclusive evidence
that Runkle divided his profit of go
cents per case with Machen and Nc.
Gregor. This is analogous with the
Baltimore case in which McGregor and
Upton figured and have been both in.
dicted.
"Machen and Runkle have been in.
dicted in this case.
''In 1898, through the free delivery
division, contract was made with
Leopold J. Stern of Baltimore for car
riers' satchels. The specifications re.
qnired Stern to furnish complete
satchels. including the shoulder
straps, the choulder strap being spe-
officially described as part Of the
satchel and to be furnished by the
contractor After the contract was
entered into, Stern
Was Relieved by Machen
from furnishing the straps, 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 a large
amount of money which Long divided
witt. Machen.
The straps which Long had been
relieved from furnishing were pur-
chased by Machen from New York
firm without competition. He re.
quired this New York firm, however,
to pay commission of cents per
| ed by w. C. Long and divided be.
tween Long and Machen. In this
transaction Machen not only secured
money from Stern for relieving him
from furnishing the strap, which he
| had contracted to furnish. but re.
qu!:ed the man from whom he bought
the straps to pay him commission On
the strap which he was giving to
| Stein. Long was used as the inter.
m:l:ary in both transactions Over
s22.OOO was paid by the department
for straps that were furnished to
Stern. though Stern had contracted to
furnish them himself. Long, Machen
and Srer,: have been indicted in this
case for conspiracy to defraud the
| government"
| The statement then tells of the con-
tract entered into with J. E. Cupper