The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-19
Charges Filed Against Charles
Hedges, Superintendent of the
City Delivery Service.
GRAND JURY STILL AT WORK
INDICTMENTS MAY BE RETURNED
AGAINST FIVE PERSONS.
Assistant District Attorney Warned
by the President Against Continu-
ing Dilatory Tactics.
sciaI to the indianapolis Journal.

cpfcldi 70 the lDoldu6pOuS JOuIudi-
WASHINGTON, June 1S.-The investiga-
tion in the Postoffice Department becomes
more comprehensive day by day. 1t is
now learned that practically all the books
of the auditor are In the hands OF Fourth
Assistant Bristow, and that every trans
action OF the past few years relating to
disbursements in the free delivery service,
the division of salaries and allowances and
for railway mail transportation, is being
closely scrutinized. Heretofore the de-
partment inspectors have devoted their at
tention primarily to rigid examination of
conditions in the bureaus formerly in
charge of August w. Machen and George
w. Beavers. the inquiry into the dealings
OF the law branch of the department with
''get rich quick concerns and the dis
closures in the Washington city postoff1ce.
showing innumerable violations of the civil
service laws being merely incidental to
the general investigation.
II now develops that the railway mail
division will be as closely inquired into as
other branches OF the service and further
that the Office of the third assistant post
master general will be overhauled by the
inspectors. AS far as can be learned. no
charges have been filed against Mr.. Shall
lenberger. the second assistant, or Mr..
Madden, the third assistant, or any of the
officials under them, but it is the purpose
OF Postmaster General Payne to make the
investigation so sweeping as to obviate
the possibility OF suspicion arising here
after that. anything has been left undone.
II the officials were so inclined IL is gen.
orally recognized that the possibilities for
graft In the railway mail service are
limitless and it is also pointed out that with
such enterprise as Machen displayed
Ia H. -. H. It.~f-4
having jurisdiction over second class mail
matter. For this reason the inquiry win
be extended to the bureaus of the second
and third assistants.
Xxx
In connection with the examination Of the
books OF Auditor Castle 1T is learned that
another question about the transactions of
Mr.. Beavers. former chief of salaries and
allowances, has been discovered. few
years ago Mr.. Beavers was detailed to
make an examination into claims of letter
carriers for overtime. 1t appears that he
demanded and was paid "a per diem for this
work IN addition to his regular salary of 81,
500 a year. He thus drew double pay from
the government. and Mr.. Bristow wants to
know why his vouchers for the per diem
were passed by the auditor. 1t is under
stood that other Irregularities, most of
them Of a minor nature: appear to have
taken place in the auditors office.
Notwithstanding developments in other
directions, a great deal of interest is mani
tested in the operations Of the inspectors
In the division OF salaries and allowances.
Mr.. Beavers handled about SO, 900 g year.
He had unlimited authority in making con-
tracts. He lived like lord, and as soon as
the word was passed that inspectors would
scrutinize his accounts he resigned.
XXX
1t was announced to-day that the Post
Office Department has given formal notifi-
cation to a number of contractors who have
for years been furnishing a line of stand
ard postal supplies that 1t may take advan-
tage Of the clause In these contracts which
permits the department TO cancel them at
the close of the fiscal year. The fiscal year
ends with the last day of the present
month This step was taken as a precau-
tionary one. The investigation Of the divi.
sion Of salaries and allowances has to do
directly with supply contracts. Under the
circumstances the postmaster general
wishes to be in position to terminate these
contracts, or any one of them, IL irregulari-
ties or any other good reason for such ac-
ton develop.
1t is reported that the federal grand
jury will bring in five indictments on
Monday against persons involved in
the postal scandal. Every effort has
been made to keep the public in ignor-
ance OF the action to be taken until the
papers were ready for presentation. but 1t
is learned that the jury has voted to return
indictments against August W. Machen,
Uilier B. Groff, Samuel A. Groff, George L.
Lcrenz and Mrs Lorenz. the two latter be-
ing residents or Toledo. o. The specific
charges against the persons named, IL IS
understood, will be conspiracy to defraud
the government Rumors have been cur
rent for several days that new indictments
the Croft brothers. but IL was not expected
that action would be taken so soon. The
sensational feature In this case is the con-
nection of Mrs. LorenZ's name with the
transactions, which led 10 the arrest OF
Machen and the Groffs Ii has been in
timated that the go-between in the scandal
over the sale OF the Gron letter-box fastener
10 the department was a woman. but wheth-
er Mrs Lorenz acted in that capacity is
not known.
A serious condition OF affairs has arisen
as result of the friction between the Of
neials in charge Of the postal investigation
ard Assistant District Attorney Hugh Tag
CART. who has charge of the legal phase OF
the matter in Washington. Postoffice De-
psrtment officials are much concerned. and
claim that the progress of the inquiry has
been hampered by Mr.. Taggart's dilatory
and entirely unsatisfactory methods and
the success of some of their most impor-
tant plans endangered. The situation is
considered SO serious that President Roose-
Welt this afternoon sent for District Attor-
ney Beach. Assistant District Attorney
Tageart and Assistant Attorney General
Robb While no details obtainable as
10 what took place at the conference il
was learned tonight on high authority
that the President impressed upon Mr. Tag
cart the absolute necessity OF changing his
course he wished 10 continue In Office
II was learned at the Postoffice Department
this afternoon that nearly two weeks ago
the federal grand jury returned indictments
against two men whose names have been