Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-06-06
DEFRAUOEO The
GOVERNMENT
Two Rural Free Delivery Clerks
Under Arrest
SEVEN CASES In ALL NOW
other Arrests Expected shortly Story
OF the Affair ~ Told by the
officials.

washington, June 5-As a result OF
the sweeping investigation OF affairs at
the postoi1ce department. Thomas W.
McGregor, clerk in charge Of the sup
plies for the rural free delivery service
and c. Ellsworth Upton Of Baltimore
one Of McGregors assistants, were ar
rested today on the charge Of conspira-
cy with Charles Il. Smith Of Baltimore
to defraud the government in the pur-
chase Of the leather pouches furnished
the rural carries throughout the coun-
try, Their cases make seven in all
since the investigation began, Other
arrests are expected later The story
OF today's arrests Is best told in the
following official statement, given out
by the fourth assistant postmaster-gen-
eral this afternoon
Thomas w, McGregor and c. Els
worth Upton We're arrested this after
noon on warrants sworn out In Baltl-
more by Inspectors Simons and Sulll-
van, charged with conspiracy with
Charles T., Smith and others to defraud
the government in the purchase OF
pouches from G, +. Smith Of Baltimore
The complaint sets forth that McGreg-
or and Upton agreed with Smith to OBJ
tain for him orders for many thousands
of leather pouches such as are used by
rural letter carriers, The price agreed
upon was 30 cents per pouch the ae-
tual value was less than 90 cents, smith
was 10 pay to them the difference be-
tween 30 and 50 cents per pouch.
II is said al the department that the
actual number of pouches which were
purchased exceeded 10000, for which
the government paid 80 cents each, or
$4,000 In all Smith received and re-
tained Of this for his own use $4,000
The remaining $4,000 was paid to Nc
Gregor and Upton. The government
could have bought the entire number
OF pouches from the manufacturers for
5000, McGregor was the clerk In
charge Of rural free delivery supplies
and Upton was one OF his assistants,
Inspector Sullivan Is from the ST.
Louis division and Simons from the
Kansas City division Of postofiice IN
spectors.
McGregor has been In the postal SER
vice since 1891 He came here from
Nebraska as a messenger and sub
sequently was promoted TO a clerkshlp
and finally was appointed by Mr., Ma
chen In charge OF the supply fork Of the
rural free delivery service Mr. Upton
Is Batmorean and has been In postal
service for thirteen years. Both the
men arrested are married. They were
taken into custody at the postofiice
shortly before the close Of Office hours.
Upton asked to be taken before a
commissioner at Baltimore instead Of
in this city because Of his wider ac-
quaintance there and better opp) n.
ity for securing bail. According 70
was taken to that city by two
office inspectors shortly before 8 O'cCcx
this evening. McGregor was taken 10
the Office Of United States Commission
er Taylor,
The arrests were not made public un-
IN $3.50 on account OF the time required
at the district-attorney's office in this
city 10 make out the warrants.
United States Dist,-Atty, John c.
Rose Of Baltimore arrived here late
tbs evening and was in close consulta-
ton In an advisory way with the fourth
assistant postmaster-general for a con-
siderable time over the arrests
McGregor has been under the close
surveillance Of the inspectors for weeks
and has been subjected TO a close ex-
animation for several hours q day dur
ing a part Of that time, The inspectors
say tina to-day they completed the evil
dence they wanted before taking ac-
tlon.
Postmaster-G General Payne was notl-
fed on his arrival by the fourth as
sistant postmaster general this evening
and they had a short conference on the
subject The postmaster general was in
disposed and did not reach the depart.
ment until 2 o'clock, He omitted the
usual o'clock interview with the
newspaper men which has become his
daily custom almost since the incep.
ton OF the postofiice investigation and
sent word that there was nothing TO
give out. but when Intercepted as to
future developments, merely responded
zone could never tell what the morrow
will bring forth"
Postal officials after the arrest would
not say whether their Investigations In
anywlse implicated Mr. Machen, who
was general superintendent Of the sys.
TEN while the alleged transactions oc-
CURED In the present matter Later Mr.
MeGregor was taken before United
States Commissioner Taylor and re-
leased on 5000 bond. He waived pre-
lminary hearing.