The Montgomery advertiser., 1903-06-06
MACHEN IS INDICTED;
 CLERKS UNDER ARREST

given out by Fourth Assistant Postmas- ter General Bristow this evening: Thomas w. McGregor and c. .Ells- worth Upton were arrested this afternoon upon warrants sworn out in Baltimore by Inspectors J. D. Sullivan and R. D. Simons, charged with a conspiracy wit Charles E. Smith and others to defrauo the United States government in the pur- chase of pouches from C. E. Smith of Baltimore. | '"The complaints set forth that Mo Gregor and Upton agreed with Smith to obtain from him orders for many thou stands 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 to them the difference between 90 and 50 cents per pouch. It is stated at the department that the actual num- Der of pouches which were purchased ex- ceeded 10000. for which the government paid 90 cents each, or s1S,0O0. in all. Upton and McGregor. Smith received and retained of this for his own use $10,0O0 The remaining $S.000 was paid to McGregor and Upton. The government could have bought the entire number of pouches from the manufactur- CTS for $S,000.
 "McGregor was the clerk in charge of
  was one of his assistants"
 McGregor has geen in the postal ser vice since 1891. He came htere from Me- braska as a messenger and subsequently was promoted to clerkship and finally was appointed by Machen in charge of the supply work of the rural free deiiv- cry service. Upton is Baltimorean and has been in the postal service for thir- teen years.
 D-.L .ho ,nan arrastad ara married They were taken into custody at the Postoffice Department shortly before the close of office hours. Upton asked to be taken before a Commissioner in Balti- more instead of this city, because Of his wider acuuaintance there and better op- portunity for securing bail. Accordingly he was taken to that city by two post office inspectors shortly before o'clock this afternoon.
 McGregor was taken to the office Of UnIted States Commissioner Taylor. The arrests were not made public until 6:30 o'clock this afternoon owing to the time required at the District Attorneys of flee in this city to make out the war rants based on the Baltimore papers. United States District Attorney John c. Rose of Baltimore. arrived here late this evening and was in close consultation in an advisory way with Fourth Assistant POStmaSter-General frlStOW IoE Cou- siderable time over the arrests.
 McGregor Was Suspected.
 McGregor has been under the close sur veillance of the inspector for weeks, ana has been subjected to a close examina- ton for several hours a day during a part of that time. The inspectors say that today they completed the evidence they wanted before taking action. Postmaster General Payne was noti- fled of the arrest Aby MT. Bristow this evening and they had a short confer e on the subject.
 The Postmaster General was indisposed today and omitted the usual o'clock in- terview with the newspaper men, which has become his daily custom almost sincec the inception of the postoffice investiga- ton, and sent word that there was noth- ing to give out, but when interrogated as to future developments. merely re- sponded, "One could never tell what the morrow would bring forth,
 Postal officials after the arrests would not say whether their investigations in any wise implicated Mir Machen, who was General Superintendent of the sys- tenn while the alleged transactions oc- cured Tn the present matter. Fourth Assistant Postmaster-General Bristow. when asked a question on this point, de- clined to answer, saying that the state ment made comprises all the department cared to give out on the subject at this time. MT. Bristow also declined to say what action was likely to be taken in the case of c. E. Smith. the Baltimore con- tractor, who Is named in connection with the case
 MT. Smith has not been arrested" said MT. Bristow, in reply to als inqui- ries, "and I cannot say anything as to whether he will or will not be taken into custody"
 MT Bristow said. however that the two arrests close the care for the pres- ent.