Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1903-06-11
POSTAL INQUIRY.
Two Clerks in the POStOfiice
Department Arrested.
Charge of Conspiracy 10 Defraud the
United States Government In the
Purchase of Mail Pouches
--Grand Jury IndIcts
4. w. Machen.

Washington, June 6.--As result of
the sweeping investigation of affairs
at the postotfice department, Thomas
w. McGregor. clerk in charge of
the supplies for the rural free deliv-
cry service, and c. Ellsworth Upton,
of Baltimore, one of McGregor's as
sistants, were arrested Friday on the
charge of conspiracy with Charles E..
Smith, of Baltimore, to defraud the
government in the purchase of the
leather pouches furnished the rural
carriers throughout the country.
Their eases make seven arrests in all
since the investigation began. Other
arrests are expected later.
The story of Fridays arrests is
best told in the following official
statement given out by Fourth As
sistant Postmaster General Bristow
last evening:
"Thomas w. McGregor and c. Els
worth Upton were arrested this after
noon upon warrants sworn out in
Baltimore by Inspectors J. D. Sulli-
van and Il. ID. Simmons, charged with
conspiracy with Charles f. Smith and
others to defraud the United States
government in the purchase of
pouches from c. +. Smith. of Balti-
more. The complaint sets forth that
McGregor and Upton agreed with
Smith to obtain for him orders for
many thousand leather pouches such
as are used by rural letter carriers.
The price agreed upon was 80 cents
per pouch: the actual value was less
than 80 cents. Smith was to pay to
them the difference between 80 and
50 cents per pouch. 1t is stated at
the department that the actual num-
Der of pouches 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
$1,000 was paid to McGregor and Up
ton. The government could have
bought the entire number of pouches
from the manufacturers for $1,000"
Baltimore, June 6.-Columbus Els
worth Upton was locked up in the
Central police station last night and
is held for the United States authori-
ties. He will be taken before United
States Commissioner Rogers today or
Monday Bail was refused by the To-
cal ponce OlhtltIS. i HIct posi- OillCe
inspectors are in the city and the
police expect other arrests in con-
nection with the scandal in the post
Office department in Washington.
Washington. June 6.-The grand
jury on Friday reported an indict-
ment against August w. Machen, for
mer superintendent of the free deliv-
cry service of the postoflice depart
ment, who was arrested several days
| ago, charged with sharing profits on
government contracts for letter box
fasteners. The Indictment was
brought for violation of Section 5501
of the revised statutes, the penalty
for violation of which is a fine not
more than three times the amount
asked or accepted or received, and
by imprisonment not more than
three years"
| The amount which the indict-
ment states he received illegally is
! S1S.9S7.79. Mr.. Machen was in court
with his attorneys when the grand
jury reported and Immediately gave
bond in the sum of 100000 for his
appearance in court. The trial will
| occur in October