The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-06-07
PRESIDENT AND PAYNE
DISCUSS POSTAL FRAUDS
Long Conference Held at
the White House.
MORE ARRESTS PREDICTED
The Departments Emergency Fund.
New Charges Filed With Mr..
Bristow.

Postmaster General Payne was at the
Postofice Department but a short time
yesterday. He attended the Cabinet
meeting in the morning and after a hur-
ried visit to his Office returned TO the
White House, where he had a long con-
ference with the President. What took
place at the conference between the
President and the Postmaster General is
not known, but it is assumed that they
discussed the Postoffice scandals.
When Mr. Payne left the President he
again visited his office, and had a con-
ference with J. L. Bristow, Fourth AS
sistant Postmaster General, who is con-
Quoting the investigations, and to whose
energy and perseverance the arrests, dis
missals and suspensions are largely at
tributed by the public. 1t has been ex-
pected that Mr.. Bristow would be called
upon by the President to make a verbal
report of what has been discovered to
date, but he said yesterday that no such
request had been made up to that time.
No Startling Developments.
Mr.. Payne was seen at the Arlington
last night but said that there had been
no startling developments during the
day He declined to discuss the Cabinet
meeting or the conference between him
self and the President
The intimation came from high Off
cial in the department yesterday that a
half dozen other arrests of employees in
the rural free delivery division may lie
expected to follow the result of the in
vestigation of contracts now being made
by inspectors.
For years Congress has been appro-
priating almost a quarter of million
Of dollars as an emergency fund, from
which Machen could draw whenever in
his discretion he deemed it proper.
That discretion" was exercised in
the purchase of the Croft Ietterbox fast
eners- From the same fund was drawn
the payments in the cases of McGregor
and Upton. arrested Friday. 1t is said
the inspectors have so far progressed
in their labors as to disclose that for
three years, at least, a rake off, has
been secured by some one in every pur-
S4-s@oO AAAodS IL -IAob loiOA uAoSA lhh
emergency fund.
More Charges Filed.
1t has been frequently charged that
Machen and other department officials
have been exploiting the advantages o:
certain mining company in which they
were interested. and that subordinates
were approached with a view of invest
ment- Formal charges of this nature
were filed with Fourth Assistant Bris-
tow yesterday.
Included in the charges was certi-
fed copy of the incorporation papers
of the National Capital Copper Mining
Company. of which the directors were
as follows:
August w. Machen, of Ohio. superin-
teLdent of free delivery. Postoff1ce De-
Lartment; H. H. Rand, OF Wisconsin
confidential secretary to Postmaster
General Payne, and chairman of the sup
lily purchase committee of the Postof-
fee Department; J. d. King, of Wiscon-
sin, chief of the civil service division OF
rural free delivery. Postoffice Depart
rent; H. NJ Baker, congressman
George E. Lorenz, former postmaster al
Toledo, Ohio Thacker E Lee, of the
District of Columbia; D. H Fenton, OF
Indiana. law clerk in the Auditors di-
vision of the PostofIice Department, and
Samuel w. Scott, of Texas. Of this com
peny, Machen was president, Rand vice
pI esident, King secretary, and Baker
treasurer
McGregor and Upton Arrests.
Mr.. Bristow announced yesterday that
there was nothing new in the matter of
the arrests of McGregor and Upton. and
said that no more arrests were contem-
plated al present.
NJ. G. Fosnes, acting superintendent of
the free delivery division, was asked
whether c. Z. Smith. named as the pouch
manufacturer whom McGregor and Upton
are said to have bribed, would be arrest
ed Mr.. Fosnes would not give a definite
answer, but intimated that if Mr.. Smith
would be good and tell all he knew he
would not be prosecuted
Comment was caused by the allega-
tion that McGregor and Upton received
40 cents on each mail pouch the price
OF which was 80 cents, leaving Mr.
Smith but 30 cents. The 30 cents is
thought 10 have allowed Mr.. Smith a
good but not excessive profit. and
Amusement was expressed that he did
not set more out of the alleged deal
Another subject of comment was the
fact that Emanuel SPEECH should be one
OF the bondsmen for A. W. Machen, who
pledged The $40, 900 needed. Mr.. speich
is bookkeeper in the rural free delivery
division and passes upon the accounts
for supplies for the division. That a
clerk should be in a position TO go on
such a heavy bond caused some sur
prise.
Mr.. Speich was appointed from Ne
braska. McGregor's State. and was first
in the Treasury Department. From the
Treasury he went to the mail depreda-
tions division OF the Postoffice and later
became bookkeeper in the rural free de-
livery division.
He is also said TO be the man who
estimated the free delivery deficit at
$50. GOO. when subsequent examination
indicated deficit of over $500, GOO.
LAUNDRY STRIKE SETTLED.
CHICAGO. June 1.-THE laundry