The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-06-06
HERE'S ''PAY DIRT"
POSTOFFICE SCANDAL SHOWS TWO
MORE ARRESTS.
CONSPIRACY is CHARGED.
1T is SAID MAIL POUCHES SUPPLIED
A .'GOOD THING"

Thomas w. McGregOr, in Charge of
Supplies for the Rural Free De-
livery Service, and c. Ellsworth
Upton, One of His Assistants, Are
Charged with Having Defrauded
the Government Out of About $1O,-
OOO-HONv 1t Is Alleged This Was
Done.
Washington, June 5.-As result of
the investigation of affairs at the Post
office Department, Thomas w. Nc
Gregor, a clerk in charge of the sup
plies for the rural free delivery serV-
ice, and c. Ellsworth Upton of Balti-
more, one of McGregor's assistants,
We're arrested to-day on the charge of
conspiracy, with Charles E. Smith of
Baltimore, to defraud the government
in the purchase of leather pouches
furnished the rural carriers throughout
the country.
Their cases make seven arrests in
all since the investigation began. Other
arrests are expected later.
TIL story of to-days arrests is best
told in the following statement, given
out by Fourth Assistant Postmaster
General Bristow this evening:
Doubled on Their Value.
Thomas w. McGregor and C. Ellis
worth Upton were arrested this after
noon upon warrants sworn out in Bal
timore by Inspectors j. D. Sullivan and
r. D. Simmons charged with con-
spiracy with Charles E. Smith and
others to defraud the United States
government in the purchase of pouches
| from c. E. Smith of Baltimore
THE complaint sets forth that Nc
| Gregor and Upton agreed with Smith
to obtain for him orders for many
thousands of leather pouches such as
are used by rural letter carriers. The
price agreed upon was 80 cents per
| pouch; the actual value was less than
| so cents. Smith was to pay to them
| the difference between 80 and so cents
| per pouch.
TT is stated at the department that
| the actual, number of pouches which
were purchased exceeded 10000, for
which the government paid 80 cents
each, or $4,000 in all. Smith received
and retained of this for his own use
| $4,000. The remaining $4,000 was paid
| to McGregor and Upton. The govern
ment could have bought the entire
l NUMBER OIL DOuCleS from the ulduuldC-
! turers for $4,000
McGregor has been in the postal
service since 1891. He came here from
| Nebraska as messenger and was sub
| sequently promoted to clerkship, and
| finally was appointed by Machen in
| charge of the supply work of the ru-
| raj free delivery service.
Upton Taken to baltimore.
Upton is a Baltimorean and has been
| in the postal service for thirteen years.
| Both the men arrested are married
| They were taken into custody at the
| Postoffice Department shortly before
the close of office hours. Upton asked
| to be taken before a commissioner at
Baltimore instead of in this city, be-
cause of his wider acquaintance there
and better opportunity for securing
| bail. Accordingly he was taken to that
| city by two postoffice inspectors short
| ly before o'clock this evening Nc
| Gregor was taken to the office of
| United Sta tes Commissioner Taylor.
| McGregor has been under the close
| surveillance of the inspectors for weeks
| and has been subjected to a close ex-
| animation for several hours day dur
! ing part of that time. The inspectors
say that to-day they secured the evil
| dence they wanted before taking de-
| cisiye action.
Wouldn't Talk About 1t.
Postal officials after the arrests
would not say whether their investiga-
| tons in any way implicated Machen,
who was general superintendent of the
| system while the alleged transactions
| occurred, in the present ma tier. Fourth
Assistant BristoW. when asked a ques-
ton on this point, declined to answer,
saying that the statement made public
Nnf 1ra,.ica oil tha
| give out on the subject at this time.
| Mr.. Bristow also declined to say
what action was likely to be taken in
the case of c. E. Smith, the Baltimore
contractor who is named in connection
with the case. Mr.. BrstoW said, how
ever, that the two arrests close the
case for the present.
| Later McGregor was taken before
United States Commissioner Taylor
and released on $4,000 bond. He waived
| a preliminary hearing.