Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1903-06-12
POSTOFFIOE SCANDAL.

The Poetofflce department investigation
was productive of some sensational and
important developments last Friday.
U. Ellsworth Upton, Of Powhatan, Balt.
more county, and Thomas w. McGreeor
we're arrested charged with conspiripg with
Chas. K. Smith, Of Baltimore city, TO de.
fraud the government.
} Mr.. Upton ia member Of the MARYLAND
State Central Committee. He was brought
10 baltimore and locked up at the Central
Police Station.
Mr.. Smith is leather goods dealer Of
Baltimore city. The conspiracy is alleged
TO have been in an arrangement between
him and the two government officials for the
purchase from him Of leather mail pouches at
exorbitant prices, the excess charge being
shared by the three men.
1t was intimated that Smith turned states
evidence.
1t is thought probable that Machen was
concerned in this case.
Former superintendent of the free delive
ry service, August W. Machen, who was re-
Gently removed from Office and arrested
charged with similar offense, was indicted
by the federal grand jury at Washington.
1.-THE complaint sets forth that McGre-
gor agreed with Smith to obtain for him or.
ders for many thousands Of letter pouches,
such as are used by rural letter carriers.
The price agreed upon was 80 cents per
pouch. The actual value was less than so
cents per pouch.
at is stated at the postoffice department
that the actual number of pouches which
were purchased exceeded 10000, for which
the government paid 80 cents each, or $ls,'
900 in all. Smith received and retained Of
this for his own use $4,000; the remainder,
$1,000, was paid TO McGregor and Upton
The government could have bought the en-
tire number of pouches from the manufac.
turers for $1,000.
The following editorial is taken from the
Washington Post:
"As sidelight on the hitherto occult but
now slowly appearing processes of the Post
Office Department ring, the prospectus Of
the National Capital Copper Mining Com
pany' possesses many virtues of illumina.
ton. The articles Of incorporation on re.
cord al Alexandria, Va, the theoretical
home Of this interesting enterprise, show
that 1t was organized by Postoffice officials
and suggest that it was conducted under
governmental auspices. We find that Mr.
August W. Machen-whom we all know
is president; that Mr.. Henry II. Rand, oil
Wisconsin, Postmaster General Payne't
confidential clerk, is vice president; that thu
secretary is Mr.. j. ID. King, also of Wis
consin, chief of division In the rural fire.
delivery service; that among Its director
are Mr.. George E. Lorenz, of Ohio-o
whom we have heard something and ma,
hear more-and Mr.. David II. Fenton, @
Indiana, law clerk in the Office of the Audi
tor Of the Postoffice Department. II thi
be not sdelight Of especial and mos
searching brilliancy, We should like to know
what is.
Now, of course, there is no impropriet
involved In the investment by any publ
official Of his own private means in an
lawful enterprise. That proposition need
no argument. But here is speculative con
Germ, presumably with shares to float upol
the market; having its putative domicile Il
Alexandria and Its actual domicile in th
Postoffice Department.; Its president, vic
president, and secretary, and five Of the min
diFec, rs holding government positions, an
oertainly not conducting either offices q
works outside of Washington
Moreover, observe the ingenuity wit
which the places are distributed. Presiden
Machen was the head Of the free deliver
service. His vice president is the Postmas
ter Generals confidential clerk, where b
could do Machen constant good, thong
not in copper mining way. His secrt
tary Is chief OF division. One of his dI
rectors is Mr.. George e. Lorenz, Of Ohio
whose financial dealings with Mach IN viii
be explained later in criminal court, an
another, Mr., ID. Ii. Fenton, of Indiana,
law clerk in the Office Of the Auditor for III
Postoffice Department, who passed upo
Machens official accounts The Nations
Capital Copper Mining Company may hav
mines somewhere in El Dorado-perhaps
has-and the work OF turning out ore an
flooding the market with the product ma
run merrily along. But, certainly, all tn
managing officers are here in Washington
and most OF them spend their time in gov
eminent chairs and live on Federal salaries
"Maybe this is one of those companie
that operate automatically, by the grace q
an inscrutable yet benign Providence. May
be it needs none of the agencies upon which
less favored corporations depend. But, il
our capacity as plain, uninsplred observe
of public events, we fail To discern singl,
pleasant or encouraging feature in the spec
tace. Possibly its now hidden virtues will
appear as the inquiry deepens. Let Us
therefore, speed that contamination"