New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-06
MORE POSTAL ARRESTS.
CONSPIRACY CHARGED.
Trco Free DeIirery Officials focused
of Defrauding the Government.
IBY TELEGRAPH TO THE TRIBUNE

Upton two Of Machen's closest subordinates
we're arrested on the charge OF svindlng the
government out OF 5000 on the purchase %
maiIbags for the rural free delivery service
These constitute the important developments q
one day in the rapidly growing postoffice scan
daI
An individual VINO has sustained the most
intimate relations with Machen. and who him
self is known to have been guilty of grave "
reguIarities. is furnishing most important
information TO Mr. Bristow and his inspectors.
with the hope. doubtless. Of escaping prosecu-
tion because of the valuable assistance this in
formation is giving With the help of this man
some OF the most difficult problems confronting
tie inspectors are being rapidly solved. and l.
is manifest that every person guilty OF bribe
taking bribe giving or coIlusion viii be ar
rested as soon as evidence which will warrant
prompt indictments can be secured and arranged
for presentation 10 a grand Jury
The return OF true bill against NIachen is a
source Of the utmost grarifcation to those off,
ciaIs Of the Postofice Department who aye
charged with the publication of the service. and
it is expected the alleged rinEleader has
been indicted. that further developments. which
may have been delayed by the forIoru hope that
he would survive the storm and the fear that
he might again be in a position to wreak
vengeanse on informers. imminent
WORSE REVELATIONS TO COME
The counts on which Machen has been in
dicted are OF most specific nature. giving date
and place Of fraudulent payments. That the
Indictment promptly obtained is a further
occasion for rejoicing on the part of Fourth As
sistant Postmaster General Bristow and Acting
Assistant Attorney General Robb. who secured
the evidence and prepared the case There has
been no fear at any time that clear case could
not be made against 9Iachen as there are many
other counts Of equal Importance. but their
ramidcations are extensive. and involve off,
cials not yet arrested, so that a complete reve-
lation would prove embarrassing TO the officials.
Each days probing into the administration OF
Machen's division continues to bring to light
further appalling conditions and it is becoming
apparent that the government has been mucted
out Of many thousands of dollars. large amounts
OF which. it Is believed will be shown to have
found their way into the pockets Of men prom
inent in federal and State affairs.
prominent official of the department. said
to-day:
The government as represented by the legal
division OF the Postofice and by the Department
of Justice is determined that in so far as posi-
bile, the same measure of justice shall be neted
TO the br1be givers as 10 those who accepted
them; The important part of the situation
not the fact that the government has been sys-
tenatically robbed. but that the whole corrupt
ring Is anarchy and rebellion against decent
branch Bribe gtver and bribe taker must be
made examples of. in order that the corrupt
ing influences of the Machen ring may not per-
neate every branch Of the government service.
OFFICIAL ACCOUNT OF THE ARRESTS.
The story of to-days arrests is briefly told in
the following official statement made by Fourth
Assistant Postmaste- General Bristow this even
ing:
Thomas ". McG~egor and c. Ellsworth Upton
were arrested this afternoon upon warrants
sworn out in Baltimore by Inspectors J. D. Sui
lvan and r. d. Simmons charged with a con-
spiraCy with Charles f Smith and others to de-
fraud the United States Government i'm the mr.
chase Of pouches from c. f. Smith of Balti-
more. The complaint sets forth that McGregor
and Upton agreed with Smith 20 obtain for him
orders for many thousands of leather pouches
such as are used by rural letter carriers The
price agreed upon 90 cents "A pouch. the
actual value was less than 30 cents Smith was
70 pay 70 them the difference between 9o and
90 cents pouch. 1t is stated at the depart
ment that the actual number of pouches which
were purchased exceeded twenty thousand for
which the government paid g0 cents each or
$4,000 in all Smith received and retained of
this for his own use $4,000 The remaining
$1,000 paid to NIcCiregor and Upton. The
government could have bought the entire num-
$1,000
McCTregor was the clerk in charge Of rural free
delivery supplies and Upton one of his as
sistants
McCregor has been in the postal service slncs
1891. He came here from Nebraska as a mes
senger. was promoted 20 clerkship and finally
was appointed by Machen TO take charge of ths
supply work of the rural free delivery service.
Upton is from Baltimore and has been in the
postal service thirteen years Both are mar
ried. They were arrested at the Postoffce De-
partment shortly before the close of office hours
Upton asked to he taken before a commissioners
in Baltimore. instead Of in this city because of
his wider acquaintance there and better oppor-
tunity for securing LaiI. Accordingly he was
taken to that city by two postoffce inspectors
shortly before o'clock this evening Nc
GregOr was taken to the office of United States
Commissioner Taylor The arrests were not
made public until $50 O'Clock this evening.
owing 10 the time required at the District At
tOrney's office in thus city to make out the war
rants based on the Baltimore papers United
States District Attorney Ross. of Baltimore. ar
rived here late this afternoon. and was in con-
sultation in an advisory way with Mr. Bristow
for considerable time over the arrests. Nc
Gregor has been under close surveillance by the
inspectors for weeks and has been subjected 70
a rigid examination for several hours day for
a part Of that time The inspectors say that
they completed The evidence they wanted to-
day before taking decisive action
Mr. PAYNE NON-COMMITTAI.
Postmaster General Payne was informed o<
the arrests by Mr. Brtstow this afternoon. and
they had short conference on the subject The
Postmaster General was slightly in to-day. and
did not reach the department. until D m He
omitted the usual 4 O'Clock interview with the
newspaper men. which has become his daily
custom since the beginning Of the investiEa-
tion, and sent word that there was nothing 80
give out, but when asked To future develop
ments merely replied "One could never tell