The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-06-06
ALLEGED TO HAVE FORMED
CONSPIRACY TO DEFRAUD
1t Is Charged That They Went Into
Fraudulent Scheme With Charles
(. Smith of Baltimore In Pur-
chase of Leather Pouches.

sweeping investigation of affairs at the
postoffice department Thomas w. Nc
Gregor clerk in charge of the supplies
for the rural free delivery service, and
c. Ellsworth Upton of Baltimore, one of
McGregor's assistants, were today ar
rested on the charge of conspiracy with
Charles E. Smith of Baltimore to de-
fraud the government in the purchase OF
the leather pouches furnished the rural
carriers throughout the country. Their
cases make seven arrests in all since the
investigation began. Other arrests are
expected later. The story of today's ar
rests is best told in the following official
statement given out by Fourth Assistant
Postmaster General Bfistow this after
noon:
Official Statement.
Thomas w. McGregor and C. Ellis
worth Upton were arrested this after
noon upon warrants sworn out in Balti-
more by Inspectors ]. D. Sullivan and r.
D. Simmons charged with a conspiracy
with Charles e. Smith and others to de-
fraud the United States government In
the purchase OF pouches from c. z. Smith
of Baltimore. The complaints set forth
that McGregor and Upton agreed with
Smith to obtain orders for him for many
thousands of leather pouches such as are
used by rural letter carriers. The price
agreed upon was 80 cents per pouch. The
actual value was less than 80 cents.
Smith was to paw to them the difference
betwsen On and IN cents ,er no,ch II :.
80 -, p0.S
e'"seu a. ehe uePar.nieh 'hat 'ne actual
NUMBER Oh pouches which were pur-
chased exceeded 10000 for which the gov
ernment pald 40 cents each or s1s ooo Il,
all er,,,h ra,a,,,od IA .ata,rod :, .A,.
-. 49, ','''
Iol ms own use sIoooV. Ine remaining
$SOoO was paid to McGregor and Upton.
The government could have. bought the
entire number of pouches from the manu-
facturers for $4,000.
''McGregor was the clerk In charge of
rural free delivery supplies and upton
was one of his assistants"
IL a.. e e, 4oo.
McGresor has bear Il, +ha nosto1 sor,,,o.
since 1891. He came here from Nebraska
as a messenger and subsequently was pro-
NOTED to a clerkship and finally was an
pointed by Mr.. Machen in charge of the
supply work of the rurual free delivery
service Mr., Upton is a Baltimorean and
has been in the postal service for thir-
teen years. Both the men arrested are
married They were taken into suctody
at the postoffce department shortly be-
fore the close of office hours. Upton
asked to be taken before commissioner
In Baltimore instead of this city. because
of his wider acquaintance there are bet
ter opportunity for securing bail Ac-
cordingly he was taken to that city by
two postoffice inspectors shortly before
6 o'clock this afternoon, McGregor was
taken to the office of United States Com
missioner Taylor.
The arrests were not made public until
$50 o'clock this evening owing to the
time required at the district attorneys
office In this city to make out the war
rants based on the Baltimore papers
United States District Attorney John G.
Rose of Baltimore arrived here late this
evening and was In close consultation in
paus... 9a "as VIZ I.,r. rour' VI Assisean'
.5s.,, .,.ei q. , ~ eoii
"o'e 'ii'ie oFei 'ne ar
Had Been Under Surveillance.
McGreror has been under the close
sirvei1Ianca of the insnectors for vveeka
and has heen subjected to a close exam,
ination for several hours a dav during a
mari Of that time The insnectors saw
that today they completed the evidence
they wanted before taking action. Post
master General Pavne was notified of the
arrest nv Mr.. Rristow this evening and
thew had a short conference on the suh-
iect
The nostmaster general was indisnosed
TODAY and omitted the usuaI o'clock in
terview with the newsnaner men which