New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-01


Washington, July 31.-An extraordinary story
of fraud by which. in every instance. August
w. Machen formerly general superintendent OF
free delivery in the Postofice Department. had
profted, and which has cost the government
sum variously estimated up to $4,000, has been
toG to the Washington Grand Jury and result
ed in the indictment to-day of William Gordon
Crawford, who was deputy auditor for the Post
Office Department from June II. 1898 to Sep
tember IL. 1891 and is member of one of the
exclusive clubs of this city. and manager of the
Postal Device and Lock Company, of New
York; Maurice RunkeI, of New-York; John T.
Cupper, Mayor OF Lock Haven, Penn, and Will
lam c. Long an Ohio man, who has spent much
time in this city in recent years. and is an intt-
mate friend of Machen, and the reindictment
of August w. Machen, Mr.. and Mrs. George F..
Lorenz, of Toledo. Ohio; Leopold J. Stern. OF
Baltimore and Thomas ". McGregor prot6ge
of Machen, who was a messenger at the begin
ming of Machens administration of the free de-
livery service, and in recent years has been in
charge of the supplies for the rural free de-
livery service.
According to the evidence presented to the
grand jury every letter carriers satchel used
in the United States since 1892 has paid its
tribute to Machen and as there are eighteen
thousand city and fifteen thousand rural car
riers and many of them two satchels
year the extent of the swindle can be Sstimat-
ed On a small leather case furnished for the
use of the free delivery carriers by Maurice
Runkel, of New-York. rake-on of 6O cents
each has been collected by Machen and his con-
federates and every letter box that was paint
ed paid it's share of tribute. in all $4,000. to
this prince of grafters." "the congressman $
friend"
MR.. BRIsTOW's STATEMENT
When the grand jury had returned it's bills
and adjourned this afternoon, the following
statement Of the cases against the indicted in
dividuals was given out by Fourth Assistant
Postmaster General Bristow:
In 1892 the department through the Free De
livery Division, entered into a contract with inc
Postal Device and Lock Company LOT the pur-
chase OF carriers satchels for a period OF 1our
years The manager Of this company, win
whom all negotiations were conducted was
w G. Crawford of Washington. The satcheIs
were to be made of a coated canvas caileu psSa-
mold. instead of leather, as Iorule[lEi II
specifcations of this contract required the con
tractor to furnish straps the same as III lhe
Stern contract. -. - .
George f Lorenz, Of Toledo ONO, mae @ 9
contract with Mr.. Crawford, represenuVe oI
the Postal Device and Lock Company 10 ald
him in securing the contract and TO furnsh
the straps for a specific amount satGnei'
Pursuant to this agreement, which was a clSah-
destine agreement, and not a matter OF IecCluu -
in the department, every time tne Fostdl
aud Lock Company was paid for a supply oil
sateheIs remittance was made by that company
to George f. Iorenz. Toledo. Ohio for his part
of the compensat ton Mr.. Lorenz. however,
did NOT furnish the straps They were turIllsned
by the department through Machen' and palo
for by the department - g. ~,
Crawford. therefore, paid Lorenz Tor ths
straDs which the department furnished, ana
Iorenz to show his appreciation OF Machen
Iiheraltv in furnishing free of charge the straps
which he 0orenz) paid for, divided ms
profits with NIachen. When Crawford remit
ted to Lorenz, Lorenz at once remi''eo u
Machen. ,
Wachen. Crawford. George E. LOrenz and
Mrs. George e. Lorenz. IN whose name the
ynonav was deDOsited have been indicted for
conspiracy to defraud the government.
Crawford was deputy auditor for the POST
of1ce Department from June II 1898. to Sep
tember -. 1897.
DIVIDING THE PROFITS
In 1901 Nachen entered into an agreement
with Maurice Runkel. of New-York. to furnish