Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1903-06-03
PosToFFIcE SCANDAL.
Chief Of the Free Delivery Service
Caught In the Tolls.

Caught In the Tolls.
Washington, May 27.-By far the
most sensational development of the
postoffice investigation up to this time
occurred today when Augustus w. Ma
chen, general superintendent OF the
free delivery service, was arrested on
warrant issued upon information OF
the postoffice inspectors, charging him
with having received "rakeoffs" from
contracts made with the local firm of
Croft Bros, for patent postal box
fastener.
The warrant specifically charges
him with receiving S1S.9S1.7S since
August s, 1900. II is alleged. however.
at the department. that this amount
does not represent all that Machen
obtained from his contracts. 1t being
charged that lie has profited by them
for several years prior to the date of
the first contract mentioned in the
warrant. Other arrests are to fol-
low.
Immediately after Mr.. Machen was
taken into custody the postmaster
general issued an order removing him
from Office. He had been practically
under suspension for fortnight pend
ing investigation into his bureau. The
discovery of Machen's alleged inter-
ests in the contracts was made quite
accidentally by inspectors some three
weeks ago. and since then their en-
ergy had been directed toward max
ing out case.
Last night, after the authorities had
become convinced that they were in
possession of the necessary evidence.
Mr.. Machen was notified to appear at
the department this morning. He
did so and was subjected TO a sweat
ing" process by inspectors and by
General Bristow for three hours. but
no admissions that he had profted by
contracts could be secured from him.
He declined to answer many ques.
tions on the ground that they related
to his private business. but insisted
to the end that he had not received
a cent improperly. Nevertheless he
was arrested on warrant which had
been prepared, and taken before a
United States commissioner. where
his attorney Immediately demanded
a full hearing.
Assistant District Attorney Taggart.
however, was not ready to proceed
with the case and hearing was set
for June 5th.
Mr.. Machen gave a 500, 900 bond, fur
nished by Philadelphia bonding COM
pany. for his appearance, declining
to accept the proffer of friends to go
on his bond. After his release he de.
clined to make a single explanation
other than the whole thing was a
grand stand play and would come out
all right
His attorneys declared that at the
proper time they would show conclu-
sively that he had been guilty of no
wrong in connection with contracts.
and on the contrary they would be
able to show that his administration
of the free delivery service had been
characterized by ability and integrity
The department officials claim that
their evidence is conclusive.
IL is understood that civil suit
will be entered to recover from Ma
chen the amount he is alleged to have
received on contracts.
Diller b. Croft. one OF the partners
in the firm of Croft Bros. who are
accused of having bribed August W.
Machen for the purpose OF procuring
the purchase by the government OF
their letter box fasteners. called at
the police headquarters tonight, stat
ing that he had heard warrant for
his arrest was out. He was served
with the warrant, and was released
on $4,000 bail, pending a hearing be-
fore a United States commissioner
tomorrow.
Samuel A. Croft, the other member
OF the Croft firm was taken into Gus
tody later. and was released on re-
ceipt OF bail in the sum OF $1,000.