The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-09-12
UNDER THE BAN
OF THE GRAND JURY
Names of Observation-Disclosures
tai Frauds Are Announced
-Machen Arraiqned.

louay announced that the six persons
named IN the seven indictments re-
turned by the grand jury last Tuesday
are:
George w. Beavers, former chief of
the division of salaries and allowances,
postohce department; August w.
M2chen, former general superintendent
OF the free delivery system, postofice
department; James w. Erwin. former
postotf1ce inspector, with Headquarters
In San francisco; George H. Hunting
ton and Isaac S. Mcclellan, both of
New York city, owners of the Columbia
supply company, of this city, and Eu-
gene ID. Scheble, of Toledo, Ohio, a
dentist and interested in the firm of
Maybury & Ellis, of Detroit, Mich, let
ter box manufacturers.
Beavers, Machen and Erwin are nam
ed jointly in one Indictment for con-
spiracy to defraud the United States.
Another Indictment is against McGie-
han, Huntington and Machen for con-
sp1racy to defraud the United States
and still another is against the same
three for conspiracy to commit bribery;
Scheble and Machen are indicted Joint
ly for conspiracy against the United
States and again for conspiracy to
commit bribery. Another indictment is
against Mcclellan and Huntington for
bribery, and the last is against Machen
singly for accepting brides.
All the indictments are based on trans
actions relating to the supply of letter
boxes and package boxes and devices
Some sensational charges are made.
The Indictment against Beavers.
Machen and Erwin alleges that the
Postal Device and Improvement COM
pany, of San Francisco, formerly the
Montague Indicator and Letter Box
company, was composed almost entire
ly of Western postal employees; that in
1889 it set aside 1000 shares of stock
for forwarding its interests" and that,
armed with this authority, it's president,
Daniel S. Richardson, and Inspector
Erwin came to Washington, saw Beav-
ers, Machen, Heath and others and got
ar order for equipping 2,0S9 letter
boxes with their device.
The Indictment says the company
was Systematically relieved of it's OBJ
legations in the way of paying freight,
Grating. painting and printing cards for
the devices it was furnishing. 1t
charges that Beavers and Machen own
ed stock under assumed names. Most
Of the thousand shares of stock set
aside. the indictment says, went to diff
ferent postoffice officials, and again
President Richardson came to Wash
II gton and following an increase in the
contract price he got for the company
dividends were paid on the stock
Mcclellan, principal owner of the Co
lUmbia Supply company, of New York,
is charged with agreeing to pay Machen
so cents for each Slips paid on the
package box contract by the govern
ment. Specific payments to Machen
are cited in consideration of increased
compensation and under the package
box contract, ostensibly for attaching
a different support to the boxes. Sche-
Bile became interested in the firm, of
which Mayor Maybury, of Detroit,
Mich, is member and which furnish
ed letter boxes to the government, and
Scheble and Machen, in a Joint indict-
n.t mt. are alleged to have schemed to
defraud the government by the supply
of excessive quantities of boxes. The
Indictment says that Maybury and Ellis
paid Scheble to the extent of the lat
ter's interest in the company and that
he in turn paid large sums to Machen
In seventeen counts the indictment
cites specific payments to Machen by
Scheble. The other indictments involve
practically similar transactions. Mon
tague, whose name figures in the Mon
tague Indicator and Letter Box COM
pany, is postmaster Of San Francisco.
Other postal cases are now pending
before the grand jury, which will re-
sumo it's sessions here next Monday.
Beavers Arraiened in New York.
NEW YORK. Sept. 11.-George w.
Beavers, the former head of the de-
partment of salaries and allowances in
the postoffice department, was ar
raigned before United States Commits
sioner Hitchcock in the federal build
ing today on a bench warrant issued
in Washington, charging him with
conspiracy to defraud the government.
Beavers furnished bond of $4,000 for
his appearance on Sept. Is. Beavers
was recently arraigned on the indict-
ment returned by the federal grand
jury in Brooklyn.
Mr.. Beavers and his counsel gave
notice that they would on Sept 25 in
sist upon the government producing
it's complete evidence against the de-
PENDANT.
The complaint against Beavers
made in this district is based on the
Washington Indictment and signed by
Confucius I. Wayland, postoffice in
spector. 1t is made on "informa ton
and belief"
The complaint charges that, accord
ing to an indictment returned in
Washington, August w. Machen, gen.
eral superintendent of the free deliv-
cry system, in company with George
w. Beavers and James w. Erwin, did
conspire, together with divers other
other persons, to defraud the United
SldlSS ny BINllB 10 ana obtaining Tor
the Postal Device and Improvement
company, a corporation organized I'M
der the laws of California, in a man
ner contrary to law and the postal
regulations the exclusive opportunity
for, and business of, furnishing to the
free delivery service certain articles.
supplies and equipments, free from all
competition, a unreasonable and ex-
orbitant prices, far above the ordinary
cost of manufacture.
The complaint further charges that
the articles so secured were 100 of the
indicated devices, and that Machen
concealed from all other persons de-
sirous of furnishing such supplies an
opportunity to compete in the sale of
the same, and that the exigency OF
the service did not demand the imme-
date delivery of the supplies men
toned. Machen further is charged
with securing the approval and pay
vice and Improvement company,
though he knew them to be exorbitant
and unreasonable. and with misin-
forming and deceiving the postmaster
general and the first assistant post
master general concerning these facts
1t is charged that Beavers, Erwin and
Machen divided between themselves
and others the excess of moneys and
the unlawful gain accruing to the Post
al Device and Improvement company
in consequence of this conspiracy.
The complaint also charges the three
men with being stockholders in the
Postal Device and Improvement COM