The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-23
'fHELATTERGO- -BETWEENS
Post-afice Inspectors Tell of Scheme
for Deffauding the Government
by Purchase of Croft Fast
eners for Mail
Boxes.
(By the Associated Press.)

Washington, June 22.-The grand jury
which has been investigating postal af-
fairs today returned an indictment against
August w. Bachen. Diller B. Croft, Sam
uel A. Croft, George g. Lorenz and Mar
tha ] Lorenz, the two latter being resi-
dents of Toledo. Ohio AS previously
stated in these dispatches the specific
charge is conspiracy to defraud the gov
ernment. The Indictment is based on sec
ton $40 of the revised statutes, which
provides penalty Of $4,000 or two years
Imprisonment, or both, in the discretion
of the court.
1t was said by Assistant District At
torney Taggart today that the Indictment
was found against Mr.. and Mrs. Lorenz
by reason of the fact that the evidence
adduced the grand jury showed them to
be the go-betweens for the Groffs and
Machen.
There are twelve counts in the indict-
ment, eleven of which are substantially
the same as those previously found against
Machen and the Groffs The first count,
of the present indictment. which relates
to the conspiracy charge, sets forth that
on June 49, 1900, in the District Of CO.
lumpia, Lorenz, Mrs. Lorenz, Machen,
and the Croft brothers 'conspired, com
bined, confederated and agreed to defraud
the United States Government of its mon
eys' by the following arrangement:
Machen should advise and recommend to
H.
the purchase from the Croft Brothers of
large number of the Croft fasteners for
mail boxes at $1.25 each, and should pro-
cure payment thereof upon which the
Croft Brothers should retain so per cent
of such payment, or Is cents for each fas-
tener; and the Croft Brothers should then
pay to Mr.. and Mrs. Lorenz, either or
both, the remaining forty per cent, which
was to be converted, appropriated and
applied to the USE of Mr.. and Mrs. Io-
lenz and Machen.
The indictment says tnat this agreement
was carried out by Machen on June 80.
recommending the purchase of six thous-
and Of the fasteners at the price men,
toned; that the Croft Brothers on the
same date presented a bill for these SIX
Thousand fasteners at the price mentioned;
that on September 18th of the same year
Machen recommended TO the First Assist
ant Postmaster General the payment Of
that bill: and that the Croft Brothers
having thereafter and on September 22d
of that year received from the United
States s7,5OO in payment of the BILL"
Diller B. Croft on October 20 same year
paid $4,000 to George E. and Martha J.
Lorenz.
The testimony upon which the indict-
ment was found was given by Postoffice
Inspectors Walter s. Mayer, Paul e. Will
hams, and Joseph F. Farrell and Theodore
w. Warner and \. liam r. Lewis the two
latter being bank men.
The Croft Brothers and their counsel for
Machen were in court when the indict-
ment was returned Machen was not
present. 1t was announced that neither
Machen nor the Groffs would be rear
rested; also that they would not be re-
quired to give new bond.
Assistant District Attorney Taggart an
nounced that the investigation ia postal
affairs by the grand jury Will continue but
that the indictment presented today com
pletes the work of his office so far as the
grand jury has acted