Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-08-01
LATEST SENSATION
In Postal. Investigation Is Nine
More Indictments
Against Machen and Others in The
Free Delivery Service.
Other Charges Expected and Arrests
Are Hourly Expected.

July lie pOSt oAiSS
investigation developed another SEN
sation, today, the federal grand jury
returning seven indictments, involv-
ing nine people for alleged conspiracy
and bribery in connection with postal
affairs. August W. Machen, for many
years the head of the free delivery SER
vice, was named jointly with others in
four of the indictments.
The other parties were VIM. Gordon
Crawford, who was deputy auditor for
the post office department from June
u, 1858. to Sept. Is, 1897, and is mem
Der of one of the exclusive clubs of this
city; Leopold ]. Stern of No. North
Gay street, Baltimore; George E. Lo-
renze, of Toledo, formerly a promi-
nent government official, Martha j.
Lorenzo, his wife; John L. Cupper,
mayor of Lock Haven, Pa, VIM. c.
Long, and Ohio man, who has spent
much time in this city in recent years
and an intimate friend of Machen
Maurice Runkel of New York city; and
Thomas w. McGregor. a protage of
Machen, who was a messenger at the
beginning of Machen's administration
of the free delivery service and in re-
cent years has been in charge of the
supplies for the rural free delivery SER
vice.
Crawford voluntarily appeared in
court soon after the indictments were
returned and furnished $4,000 bail, and
McGregor likewise gave $4,000 bail. Long
was arrected at his home, where
Deputy Marshal Springnan found him
in bed. He was released on $4,000 bond.
Machen was not re-arrested under the
new Indictment, as he gave bonds in
$50, 600 under his indictment several
weeks ago. Warrants have been issued
for the out-of-town parties indicted and
their arrest is expected within the next
"a hours. The grand jury has not COM
peted the work laid before it by the
postal Investigators and other indict
ments may be expected later on, posi-
bly, within a week or two.
1t is understood that two additional
cases against one of the parties indict-
ed. today. former prominent bureau
official, are being inquired into by the
grand jury and that the acts of another
former high official of the post office de-
partment already under indictment by
the Brooklyn grand jury are being in
vestigated.
Postmaster General Payne returned
to this city, tonight, over the Pennsyl-
vania railroad from his trip of about a
fortnight on the revenue cutter Onon-
daga, which was making its cruise
along the Atlantic coast.
The post Office department made
public the following official statement
of the cases:
"In 1892 the department throug the
free delivery division, entered into a
contract with the Postal Device and
Lock Co. for the purchase of carriers
satches for period of four years.
"The manager of the company with
whom all negotiations were conducted,
was C. " Crawford of Washington.
The satchels We're to be made of
coated canvas called pegamoid, in
stead of leather. as formerly. The
specifications of this contract requirtd
the contractor to furnish straps the
same as in the Stern contract.
George E. Lorenzo of Toledo, Ohio,
made contract with Mr.. Crawford,
representative of the Postal Device
and Lock Co. to aid him in securing
the contract and to furnish the straps
for a specific amount per satchel. Pur-
suant to this agreement, which was a
clandestine agreement and not a mat
ter of record in the department. every
time the Postal Device and Lock Co.
was paid for supply of satchels re-
mittance was made by that company
to George e. Lorenzo, Toledo, Ohio, for
his part of the compensation. Mr.. Lo-
renze, however, did not furnish the
straps. They were furnished by the de-
partment through Machen and paid for
by the department.
Crawford, therefore, paid Lorenzo
for the straps which the department
furnished and Lorenzo, to show his APP
probation of Machen's liberality in
furnishing free of charge the straps,
which he. Gorenze) was paid for, di-
vided his profit with Machen. When
Crawford RENTED to Lorenzo, Lo-
renze also RENTED to Machen. Ma
chen, Crawford, George E. Lorenzo
and Mrs. Susan Lorenzo, in whose
name the money was deposited, have
been indicted for conspiracy to de-
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