The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-01
SVEN POSTAL INDICTMENTS.
,,rr CHARGES or FRAUD AND
cpAFT AGAINST MiCHEN.
,,.,-,,. Runk 81 Of This Ciiy and Leopold y.
stern Of Baltimore, Contractors: John
T Cupper. Mayor Of Lock Haven, Pa,
and william q. Crawford. son-in-T.aw
a, Admiral Skerrett, Also indicted.


v.su,NGroN, July 81 The United States
cr,nd Jury to-day finished up the work
,,o, had been pending in connection with
,ho Post Office investigation and pre-
.,,ed seven separate indictments against
Ua,,, officers and contractors with whom
,Ia. are alleged to have had fraudulent
dealings. u-
The seven indictments comprise true bills
,ra,nst August " Machen former super
'.,ordsnt of tho free delivery division;
,rbomas W MCGregor. an employee OF the
Dos, Office Department; Maurice Runkel
~ New York city contractor for Govern
mont postal carriers satchels; William Cor
aon Crawford of Washington. representa-
,,,o here of the Postal Lock and Device Com
AMY Of New Jersey, John I. Cupper. Mayor
asIock Haven. Pa and owner Of the Alumni
ru,n Paint Company, engaged In painting
Io,ter boxes for the Government. William
r Long of Washington Leopold j. Stern
oor,rsctor of Baltimore, and George and
Martha G I.oren2 OF Toledo. ONO VINO arc
sIIeged 10 have been go-betweens.
Tie first indictment returned IL jointly
,rains, Lepold J Stern, William c. Long
40 August W Machen. The statement
" a,yen oeit a, the Post Office Department
On his case reads IA follows
In 1895 through the free, delivery division.
contract Vas made WIN hcpold !, Stern
snar,fr actions required Stern to furnish
ccmrIete Satchcls. including the shoulder
straps the shoulder strap being spec,hcaiy
described as part Of the satchel, and to be
fnrnishrd by the contractor. After the
rontrlct vas entered into. Stern was relieved
Mache" from hans fo ne the s'saP shs
In consideration of this act. Stern paid to
Il G. Long large amount Of money, which
Long divided with Maohen; The straps
With iIie stern had been relieved from furnish
inc we're purchased by Machen from a New
York nrrn without competition He re-
1Iired this New York firm, however. TO pay a
commission was collected by W G. Long
and divided between Long and Machen
In tins transaction, Machen not only Sc
cured money from stern for relieving him
from furnishing the strap which he had con-
tracted 10 furnish but required the man
from whom he bought the straps to pay him
GIVING wig to stern Long was used as the in
termedary in both transactions. over
81? OoO was paid by the Department for straps
that we're furnished to Stern. although Stern
Long, MaChen and Stern have been indicted
in this case for conspiracy to defraud the
Government.
The second indictment is against former
McGregor and Maurice Runkel of New
York. The official statement in this case
Is as follows.
In 1901, Machen entered into an agreement
with Maurice Runkel of New York to furnish
small leather case for the free delivery very
~ cents each. This contract was entered
into without competition. and the cases
cost Runkel about 80 cents each The INSPECT
ors have conclusive evidence that Runkel
0iNilpJ
Machcn and Mc,iregor This is analogous
with the Baltimore case IN which McNregor
figured, and in which they have both been
indicted. Machen Runkel and McGregor
have been indicted in the above case
The third indictment is against William
& Crawford, A W. Machen. Martha G.
I.orenz and George F. Lorenz for fraud.
Crawford represented the Postal Lock
and Device Company. and last July secured
Il contract for the supply Of letter carriers
Satchels
The contract called for shoulder straps
for the satchels, which were furnished by
the United States. Crawford, however, il is
alleged. presented bills for the full amount.
which, OH the recommendation of Machen,
we're paid For these concessions Craw-
ford paid to Machen, through Lorenz and
wife, according to the charges. about 80
per cert, of the amount received from the
Government
At the present time the company has re-
ceived about s2i 600 for the satchels. OF
this amount. Crawford. it is charged. paid
l.orenz about $1,000. and the latter. it
is alleged. divided with Machen. While
The Postal Lock and Device Company is a
New Jersey corporation, Crawford has been
the yiCe-president manager and attorney
in Washingt on. and all of this fraud is said
N be chargeahle 10 him. so far as the COM
panv s concerned.
g EA I'll; 1x,s, Il,
A. W. Machen. John T. Cupper and William
G. Long and is also for conspiracy. Be-
'ween July |, 1897, and July 1, 1901. it is al
legged that Cupper, for a consideration, in
duced Machen to get him the contracts for
painting letter boxes in various parts of
the country, and for furnishing tho ma
erials for painting other letter boxes, pack
age boxes and posts. In addition, there were
l777l boXes at the factory in Reading, Pa,
and e,04S at the factory in Cleveland. Ohio,
which he painted, Cupper, it is charged,
paid a rake-otf of 10 cents a box to
Machen. through Long ~ intermediary.
An indictment has been returned against
William {. Long separately for acting as
intermediary in the paying OF a bride to
Machen Of $500 and later OF 81 400.
William Gordon Crawford who has also
been indicted separately. il a member OF
Nh" Metropolitan Club Washington's most
exclusive social organization. and mar
ried a daughter OF Admiral Skerrett.
Crawford came here from New Orleans.
Fourth Assistant Postmaster General
Rristow and othcr officers of the Post Office
Department are highly pleased with the
result Of their abors The bringing in of
these seven indictments is held to mark
the crisis in the investigation Of Postal
Service scandals which has been ex-
Iected for over month. and while further
indictments Of a supplemental nature may
he brought in. ii il believed that the end
Of the inquiry which has already occupied
nearly SIX months, * well in sight.
,,nwtord and Long were arrested here
'ms afternoon, hut up to late hour to-
nght no word had been received by De-
partment officers that the other persons
named in the Indictments had been taken
INTO custody
,, The inspectors under Fourth Assistant
Postmaster General Rristow from now
on viii devot" u large part Of their time
=" the office Of the Assistant Attorney
',"nrraI for the Post Office Department
y "nrSorN examination Of the affairs of
ms office has convinced the Department
oh'la!N that most searching inquiry is
h"'eNHirv, and this will Ire Immediately
.hder' ikeu The record of Harrison j.
h"r"ll, former assistant attorney under
zen Ivner, and now a practising attorney
~ Tor various companies, Is under rigid
INVESTIGATION, aud developments are eX-
I"''ed in IN" near future
"''rl"' Of columbia Departments to BE
In, Pstigatcd.
WASHINGTON Julv n The Commissions