The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-06
MACHEN HAS GIVEN BOND
His Bail is Fixed at $40, 0O0---The Trial viii
Occur in OctOber---Seven Arrests Have
Now Been Made and Others
are Expected,
are Expected.
(By the Associated Press ]

(By the Associated Press)
Washington, June 5.-The grand jury to-
day reported an Indictment against
August W. Maehen, former superintendent
of the free delivery service of the POST
office Department, who was arrested sew
eral days ago charged with sharing profits
on government contracts for letter box
fasteners The indictment was brought
for violation of Section 5501 of the Re
yised Statutes. the penalty for violation
of which is a fine mot more than three
times the amount asked or accepted or
received, and by Imprisonment not more
than three years.
The amount which the indictment finds
he received illegally is $1S,9S7.7S. Mr..
Machen was In court with his attorneys
when the grand jury reported and imme-
diately gave bond IN the sum of $4,000 for
his appearance IN court The trial will
occur in October.
By securing an indictment against Ma
chen before tomorrow, the day set for
his preliminary hearing before Commis-
sioner Taylor. the government has scored
a victory by thus avoiding the necessity
of showing its land at preliminary
hearing. The proceedings before the Com
missioner will DOW be abandoned.
In discussing the case with his friends
Mr.. Maehen explains that certain checks
which it is maintained were sent to
Machen in payment of his profits in the
Croft fastener, and which have been Sc
cured by the postoffice inspectors were
sent him by his business partner, George
Z. Lorenz, of Toledo, Ohio. Mr. Lorenz
was formerly postmaster at Toledo.
Mr.. Maehen claims that his partnership
with Lorenz was strictly legitimate one
and that the checks transmitted to him
by Lorenz were in connection with the
mining business which the firm conducted
Although the amount of these checks can
not be ascertained ~. Machen says that
the one for the largest amount represents
a personal loan 10 himself from Lorenz.
Mr. Machen further informs his friends
that he was not a partner Of the Croft
Brothers concern, and that he did not re-
ceiye any of the profits from the sale of
the letter box fastener to the government
He is optimistic that no wrong-doing will
be proved against him, and he adds that
for criticism of his administration so far
as the Gron fastener is concerned is that
the price paid for the article may be
considered excessive. This was necessary,
be maintains, because the article was d
patented affair. His counsel tonight made
a statement saying:
Upon Mr.. Maehen's arrest we demand
ed an immediate hearing which was op-
-
quest of the government continuance
was had until June 9Th. Mr.. Machen and
his counsel had every reason to believe
that in the interim no steps would be
taken to deny him the preliminary ex-
animation to which he was entitled. The
authorities responsible for the issuance
Of this warrant have seen proper to bring
the same charges now pending before Com
missioner Taylor to the attention Of the
grand jury The grand jury has in conse-
quence, indicted Mr.. Machen before the
date fixed for the full hearing before the
United States Commissioner. If you want
the reasons for this proceeding you viii
have to seek it from the prosecution. We
Go not know. We can only surmlse and
that much the public can as well do as
counsel Tor the defense. Suffice IT to say
that the legal effect of this course oi
policy (Which is unusual and unfair if not
unprecedented in this jurisdiction), IS to
deprive the defendant of an open public
investigation into the truth OF these
charges to which he is fairly entitled and
which sound public policy youchsafes
to him.
The course the defendants counsel will
pursue in the matter cannot now be
made public, but later, and 1T Will be
sooner than some people want, the whole
matter viii be gone into and both sides
VIII be heard, where ex-parte proceedings
viii be out of order.''
The indictment against Mr. Machen
embraces nine counts and consists of 25
typewriter pages. 1t follows closely the
form OF the warrant upon which Mr..
Machen was originally arrested. The
grand jurors find that on June go 1900,
MI Machen with intent to have his de-
clslon and action as superintendent OF
Ifee dehVery IN regard to a purchase of
GroH fasteners influenced thereby. did
ask OF the Croft Brothers a promise that
they would pay him forty per cent of any
sum which might be received by them
thereafter from the United States through
the Postoffee Department in payment of
such fasteners, and did receive the nrom-
ise of the Croft Brothers, in accordance
herewith
The indictment then recites that in pur-