Omaha daily bee., 1903-06-07
MACHEN'S PALS GIVEN JOBS
Officers Of su7peo.s N ming Company Figure
Large IN Pcs efi5e PayroL.
PRESIDENT ORDERS PROBE SUNK DEEP
McGreEor and Upton Are Discharged,
while Sensational Action May
he Taken Mt Almost Any
Moment Now.
PRESIDENT ORDERS PROBE SUNK DEEP
CFrom a stan Correspondent

(From a stan Correspondent
WASHINGTON. June 6.--(Speclal Tele-
gram )-Thomas w. McGregor and c. Els
worth Upton. arrested yesterday charged
with conspiracy to defraud the United
States government in purchase Of mail
pouches, were dismissed today. McGregor
was credited to Nebraska and was charged
with conspiring with Upton and Charles
q, Smith to obtain for him orders for many
thousands Of leather mail pouches such as
are used by rural carriers. The price
agreed upon was 80 cents per pouch, while
the actual value was 80 cents.
1t is stated at the department that the
actual number Of pouches purchased ex-
ceeded 10000, for which the government
paid 90 cents each, or $4,000 in all. Smith
received and retained Of this for his own
use $4,000, the remaining 5000 was paid
TO McGregor and Upton. The government
could have bought the entire number Of
pouches from the manufacturers for 5000.
McGregor was appointed from Nebraska
In 1891 as a messenger in the free de-
livery division under Mr.. Machen. The
latter early professed to see great possibil-
tiles and abilities in him and rapidly
pushed him to the front. From messengers
work McGregor was transferred to clerical
work, for which, 1t is said, he was not we'll
fitted at the time. Encouraged by Mr..
Machen he applied himself assiduously and
was advanced from one position to
other until at the time OF his arrest he
was chief of the rural free delivery sup
plies
Machen Boasts of McGreEOr.
Mr. Machen frequently boasted that Nc
Gregor was his creation; that he detected
his latent ability; that but for him the
Nebraskan would still have been messenger,
and that McGregor's rapid rise was dis
tinctive tribute to his discernment. Upton
was an order clerk under McGregor and
was appointed from Maryland in 1890
President Roosevelt fully approves the
ton of the postofice officials in pressing
the investigation of the departments af-
fairs. 1t is his intention that the invesu-
cation shall be sweeping and thorough and
that every charge properly vouched for
shall be probed to the bottom.
The situation was considered in its gen.
eral phases at the meeting of the cabinet
today. but Postmaster General Payne did
not so fully into details. This afternoon,
however, the president and Mr.. Payne had
long conference. 1t is understood that
the president expressed to MIR. Payne his
desire that the investigation be as search
ing as the ingenuity OF the officials could
make II, and should be pursued until the
department has been purged of even the
suspicion Of dishonesty. Immediately after
Mr.. Payne returned to the department
from the White House he sent for Mr.
Bristow, whom he acquainted with the pres
idents views.
Mr.. Bristow said tonight that he was not
anticipating any important developments
tonight or tomorrow. although in view of
the constant activity of the twenty five
inspectors employed in the work and of
the presidents earnest approval of the
investigation and his instructions to 'go
TO the bottom" important action at any
moment would occasion no surprise.
Smith is StuI Free Man.
ofiicials decline to discuss the status of
the case Of c. F. Smith, the Baltimore
contractor who furnished tho supplies that
figured conspicuously in the proceeding
against McGregor and Upton. 1t is signih-
cant, however, that he has not been ar
rested so far, although the inspectors are
In touch with him. The investigating on
GERS refused to answer questions today as
TO whether he was TO give states evidence.
Mr.. Machen's statement yesterday that
George z. Lorenz of Toledo. o., was .his
partner in mining enterprises is confirmed
by articles Of Incorporation OF the National
SoPANoA NOppNA 1AAhllB Company a COEpOId-
ton organised at Alexandra, Va, copies
OF which are in the possession of the postal
authorities.
The directors are named as follows in the
Incorporation papers:
August w Machen of Ohio, president;
Henry II. Rand of Wisconsin. Vice presi-
H N. Baker OF SeW Hsmpshire. Hampshire tTeaSnty tTeasurcg
George e; LorenE Of Ohio, T; r: Lee Of
District of Columbia, David H. Fenton of
Indiana. Francis M (triRWal nf district
OF Columbia and Samuel w. Scott of Texas,
directors.
Mr.. Rand is confidential clerk to the
postmaster general, Mr.. King is chief Of
division in the rural free delivery and was
an applicant TO succeed George w. Beavers
as chief of the salary and allowance d.
vision, Mr.. Baker is a former representa-
tive from New Hampshire, Mr.. Lorenz
was formerly postmaster at Toledo and
once an Official OF the Postoffice depart
ment, Mr.. Fenton is the law clerk of the
ONCE Of the auditor for the Postoffice de-
partment. 1t has been alleged that the
stock Of this company was sold to EN-
ployes Of the Postoflce department.
Money for Militia Uniforms.
Secretary Root today took the initial
step toward carrying into actual effect
a portion OF the provisions of the Dick
militia bill when he signed the schedule
providing for the apportionment among the
states OF $i,OOOOo0 to be expended on new
uniforms for national guardsmen The
militia bill provided an appropriation OF
S2,0o0.OO0 TO equip and generally reorganize
the National Guard Of the country and
place II on satisfactory footing.
Since the passage OF the bill in March
officials OF the adjutant generals once