The Providence news. (Providence [R.I.]) 1891-1906, 1903-06-06
GRAND JURY
INDICTS
MACHEN
As Is Charged With Illegally
Sharing Profits on a Govern.
ment Contract.

Washington June 6.-The grand jury
reported an indictment yesterday against
August w. Machen, former superintend-
ent OF the free delivery service of the
postoffice department.. who was arrested
several days ago, charged with sharing
profits on government contracts for letter
box fasteners. The amount which the
indictment states he received illegally is
sls.ss7.79. .f
Mr.. Machen was in court with his attor-
neys when the grand jury reported and
Immediately gave bonds in the sum OF
500. 900 for his appearance in court.
GOVERNMENT SCORES POINT.
BY securing an indictment against
Machen before today, the day set for his
Taylor the government has scored vic
tory In that II has avoided the necessity
OF showing its hand at a preliminary
hearing. The proceedings before the COM
missioner now will be abandoned.
In discussing the case with, friends. Mr..
Machen says that certain checks which
payment of his profits in the Croff fast
ener and which have been secured by the
postoffice inspectors. were sent him by
his business partner. George f. Lorenz
of Toledo. o., and formerly postmaster OF
that city.
MACHEN TALKS.
He says that no wrong doing will be
proved against him. and that the only
possible cause there may be for criticism
of his administration, SO far as the Gron
fasteners are concerned. is that the price
paid for the articles may be considered
excessive. This was necessary, he main
tains, because the article was patented
affair
ship with Lorenz was a strictly legiti-
mate one. and that the checks trans
mitted to him by Lorenz were in connec-
conducted. MI, Machen says that the
check for the largest amount represented
a personal loan TO himself from Lorenz.
Mr.. Machen further states to his friends
that he was not partner of the Grofr
Bros. concern, and that he did not re-
ceive any OF the profits from the sale
OF the letter box fasteners to the gov
ernment.
ON NINE COUNTS.
The indictment against Machen en-
braces nine counts and consists Of %
typewriter pages II follows closely the
form of the warrant upon which Mr..
Machen was originally arrested, reeiting
his connection with the postoffice depart
ment. his duties In connection with the
purchase Of supplies. etc. and the fact
OF the sale OF letter box fasteners to the
government by Groff Bros. upon his ad-
vice and recommendation.
The grand jurors upon their oath FOUND
that on June 30. 1900. Mr. Machen. with
intent 10 have his decision and action as
superintendent OF the free delivery agree
ing to a purchase of Croft fasteners in
fluenced thereby. did ask OF the Gron
Bros. a promise that they would pay 10
him 40 per cent of any sum which might
be received by them thereafter from the
United States through the postoffice de-
partment In payment OF such fasteners.
the purchase of which might be procured
on Mr.. Machens advice. and did receive
the promise OF the Gror Bros. In accord
ance herewith"
The indictment then recites that In pur-
suance OF this collusive understanding
Mr. Machen received upon the various
dates specified In the original warrants
the sums stated at this time aegregating
in all about 500, ,000