The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-06
MORE POST OFFICE ARRESTS.
TWO or MACHEN'S FORMER SUB
ORIGINATES IN CUSTODY.

Brtbes From . Mail Pouch Nianufact.
urer-The Government Pays $4,000
for Pouches That Could Have Been
Bought for ~. OOO-Grand Jury In.
diets Machen for Accepting Brides
WASHINGTON, June 5-To-day was one
ofsensa, onal developments in the widening
circle Of Post Office DEPARTING candals.
Al o'clock this afternoon the Federal
Grand Jury, after one Of the shortest ses-
sions on record, indicted former General
Superintendent August W. Machen OF the
free delivery service on nine separate
counts. charging him with having received
brides amounting in. all to SIS, 1887. 10 from
the firm OF Croft Bros. of this city, manu-
facturers Of patent fastener in general
usc on street letter boxes. At o'clock
this afternoon Thomas W. McGregor and
C. Ellsworth Upt on. two OF Mr.. Machens
former subordinates in the free delivery
division Of the Post Office Department,
were arrested on warrants charging them
with having received 5000 in brides from
Charles +. Smith, mail pouch manu-
facturer Of Baltimore. Other arrests of
those implicated in Post Office scandals
will follow in few days.
The complaint sets forth that McGregor
ard Upton agreed with Smith to obtain for
him orders for many thousands Of leather
pouches such as are used by rural letter
carriers. The price agreed upon was 90
cents per pouch the actual value was less
than 50 cents. Smith was to pay them
The difference between 90 and so cents per
pouch 1t is said at the Department that
the total number OF pouches which were
purchased exceeded 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
pouches from the manufacturers for 5000.
McGregor was the clerk in charge of the
division of rural free delivery supplies
and Upton was one Of his assistants.
McGregor was taken into custody just
as he had finished his work and was about
to leave the Department. When Deputy
Marshal springman showed him the warrant
and placed him under arrest he nearly
tainted, and 1t was some time before he was
able to leave his chair. He was taken to
the Office Of United States Commissioner
Taylor. and later released on 5000 bail for
hearing. Upton was arrested in Baltimore
and brought to this city. He had difficulty
in finding bondsman and will probably
he held In custody until tomorrow.
Smith. the leather manufacturer Of
Baltimore. who is charged with having
bribed McGrrgor and Upton, has not been
arrested and no warrant has been sworn
out against him In view Of this and the
cay what their course will be with regard
to him, it is supposed that Smith placed
the post Office inspectors in possession of
documentary evidence upon which the
arrests were made. This view is strength
the dates on which Mc(irrgor and Upton
received their share OF the money paid by
'he Government for the pouches. The
positive statement is made at the Depart
ment, as in the Machen case. that "there
ID conclusive documentary evidence of
guilt
Mcf;regor has been in the postal service
since 1901. He was appointed from Ne
braska, but is a resident Of the District Of
has heen in the Department since 1890.
Both of the accused men were personal
and business intimates OF Machen and
were interested with him in many business
schemes
An inspection of the contracts which
passed through their hands showed Mr..
B-istow that the Government had been
paving about double the regular rate for
mail pouches used in the rural free de-
livery service and that the two men ar
rested to-day really had arbitrary power
IN awarding contracts for such supplies,
although subject to the approvalof Machen.
fur her investigation resulted in the dis
covery OF the evidence upon which the
arrests were made.
High Pest Office Department officials
SAY frankly tonight that still more start
ling developments will follow within few
Ga"s. The names of men under sur
vaiilance cannot be learned, but it is known
that Information which will be presented
to the Grand Jury oh Monday. under the
title Of "The United States VS. John
Doe" is really evidence upon which that
body will be asked to indict former high
official Of the postal service, who severed
his connection with the Department shortly
after the beginning Of the present scandal
in4ri,y;; 49,. cuo., ,,u, ;.a,a.
former Supt Machen, after session last
irg only six minutes, backed UP the as
set Oh, frequently, made by Postmaster
Ge' eral Payne and Fourth Assistant Post
master General Bristow that the Gov
ernnent wah in possession Of conclusive
documentary eviderce" which showed
Machen's guilt beyond question. Mach"n
ioORs like a nervous wreck and broke down
when told of this indictment.
The indictment embraces nine separate
counts and covers about twenty-five type
written pages. 1t presents that Machen,
WIN lDteht to have MS decision ana HCtlon
A. superintendent of free delivery in re-
gar. to a purchase OF the Groff fasteners,
influenced thereby, asked and obtained
of the Croft brothers a promise that they
would pay to him ~ per cent. Of any sum
which might be received by them thereafter
from the Unitet. States, through the Pest
Office Department in payment Of the fast
eners. the purchase of which might be
procured upon Machen's advice.
Machen ia charged with having received
20 per cent. in the nature Of a commission,
or bride, on all sales. The dates of the
transfer of money and the share received
by Machen are recorded az follows:
July 2. 1900, Machen procured the issuance
OF an order calling for the delivery of 5000
fasteners and 2,0s7 half fasteners for which
1884, was paid by the Government. and OF
which sum Machen received o. 020
July TO- 1900. 10000 half fasteners, costing
the Government $6503 Machen's share.
0,soi.
Oct. %, 1902, s.ooo fasteners. costing the
Government 81 500: Machen's share, S. 100
j, July /. 1900. 1850 fasteners and II ,os2 hall
fasteners, costing the Government $1,000;
Jus 1884, sss's Six XII fasteners: July 49, 5000
fasteners. and Aug, 20, eight half fasteners:
2 total Of S.oi4 half fasteners, costing the
Government 81, ss3: Machen's share, S753.5o.
=. July 2. 1901, 2,i6l half fasteners. costing
me Government 81 .352: Machen received
Aug. 20, 1901, 5000 fasteners, costing the
government "a. $50: Machen receiving ~ 800