The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-06-23
FRAUD is CHARGED
MACHEN AND ALLEGED Cocoon
SPIRAToRS INDICTED
BY DISTRICT GRAND JURY.
DEFENDANTS ARE MACHEN, THE
GROFFs AND THE LORENzEs.

Section Under which the Indict-
ment Is Brought Provides a PEN
atty of 100000 Fine or Two Years
imprisonment or BOth-PIan TN
der Which the Alleged Conspira-
tors Worked Ia Given Out--Grand
Jury SIN Busy with PostOaice
Annirs.
Washington, June 22.-The Grand
Jury, which has been investigating
postal affairs, to-day returned an in
dictment against August w. Machen,
Diller B. Croft, Samuel A. Gron, G.. +.
Lorenz and Martha ]. Lorenz, the two
latter being residents of Toledo, Ohio.
The specific charge is conspiracy to
defraud the government. The indict-
ment is based on Section 5,440 of the
revised statutes, which provides PEN
atty of $4,000, or two years imprison-
ment, or both, in the discretion of the
court.
1t was said by Assistant District At
torney Taggart to-day that the indict-
ment was found against MIR. and Mrs.
Lorenz by reason Of the fact that the
evidence adduced before the Grand
Jury showed them to be the go-be-
tween for the Groffs and Maehen.
There are twelve counts to the in
dictment. eleven Of which are substan-
TALLY the same as those found pre-
| viously against Machen and the Groffs.
| The first count. of the present indict-
| ment, which relates to the conspiracy
charge, sets forth that on June 20, 1900,
in the District of Columbia. Lorenz,
Mrs. Lorenz, Machen, and the Croft
brothers "consplred, combined, conted-
Grated and agreed to defraud the Unit
| ed States government of It's moneys
by the following arrangement:
Plan of the COnspirators.
Machen should advise and recon-
| mend to the first assistant postmas-
ter general the purchase from the Croft
| brothers of a large number of the Croft
| fasteners for mail boxes, at $l.25 each,
| and should procure payment thereof.
upon which the Croft brothers should
retain sixty per cent. of such payment.
| or rs cents for each fastener; and
the Croft brothers should then pay to
| Mr.. and Mrs. Lorenz, either or both,
the remaining 40 per cent, which was
to be converted, appropriated and APP
/ piled to the use" of Mr.. and Mrs.
Lorenz. and Machen.
The indictment says that this agree
| ment was carried out by Machen on
4 June 80, recomne nding she Ialrcnase oil
! 5000 OF the fasteners at the price men,
toned; that the Croft brothers on the
same date presented a bill for these 6.
| 900 fasteners at the price mentioned
| that. on Sept. 13 of the same year
| Machen recommended to the first as
! sistant postmaster general the pay
ment of that bill; and that the Croft
| brothers having thereafter and on
| Sept. % of that year, received from
| the United States $500 in payment
! of the bills" Diller r. Croft on Oct. 20
same year, paid $4,000 to George e. and
| Martha ]. Lorenz.
Inspectors Testified.
The testimony upon which the lndict-
ment was found was given by POST
r. Williams and Joseph F. Farrell, and
| Theodore W. Warner and William r..
Lewis, the two latter being bank men.
The Croft brothers and their counsel,
and the counsel for Machen, were in
court when the indictment was return
ed. Machen was not present.. 1t was
announced that neither Machen aor the
| Groffs would be rearrested; also that
! they would not be required to give a
| new bond.
| Assistant District Attorney Taggart
announced that the investigation into
| postal affairs by the grand jury will
| continue, but that the indictment pre-
sented to-day completes the work of
his Office so far as the grand jury has
acted.