The Birmingham age-herald., 1903-08-01
Warrants Issued for Arrest of Former PoStOflce Officials
 for Cross Corruption
MACHENS NAME APPEARS
 IN NUMEROUS CHARFES
Former Superintendent of Delivery En- gagged in Many Crooked Deals and Is Charged With Defraudlng
 U. S. On Contracts.

Washington. July sL-The postoffice in- vestigation developed more excitement to- day. the federal grand jury returning seven indictments. involving nine persons for alleged conspiracy and bribery, in connection with postal affairs. August W. Machen. for many years the head of the free delivery service, was named jointly with others in four of the indictments. The other men were Gordon Crawford who was deputy auditor for the postoftice department from June 12, 1893, to Septem- Der 15. 1897, and Is a member of one Of the exclusive clubs of Washington; Leo- poid J. Stern of Baltimore, George E. Lorenz of Toledo. formerly a prominent government official, and Martha J. Lorenz, his wife; John crupper. mayor of Lock- haven. Pa; William C. Long, an Ohio man who is an intimate friend of Maehen; Maurice Runkel of New York city, and Thomas w. McGregor, protege of Ma chen, who was a messenger at the begin ming of Machen's administration of the free delivery service. and in recent years has been in charge of the supplies for the rural free delivery service.
 Furnish Ball.
 Crawford voluntarily appeared ini court soon after the indictments were returned and furnished sloiosO bail. and McGregor likewise gave $5OOo aail Long was arrest ed at his home where Deputy Marshal Springman found him in bed. He was released on $10,00O bonds His was the only case in which a bench warrant was is- sued, owing to the voluntary appearance of the others indicted.
 Machen was not re-arrested under the indictment, as he gave bonds in $20.00o under his indictment several weeks ago. and the authorities felt that this was suf- ficient to ensure his appearance. War rants have been issued for the out-of- expected within the next twentyefour hours The grand jury has not completed the work laid before 1t by the postal investigators and other indictments may be expected later on, possibly within a week or two It is understood that two additional cases against one of the par ties indicted today, a former prominent bureau official, are being inquired into by the grand jury and that the acts of another former high official of the post office department already under indict- ment by the Brooklyn grand jury, are being investigated.
 Charges Are Similar.
 Attorney Douglas of Machen's counsel, In speaking of today's indictments of Machen, said that they involved the same general charges as the rormer indict- ment, although dlfferept alleged transac- tions, and that the new indictments were designed simply to strengthen the former ones. He said that nothing had yet been decided as to Machen's course under the new indictments. Machen was in consult tation with his counsel this evening and the demurrer to the previous indictments probably will be filed tomorrow. Walter S. Mayer, a veteran postal inspector, and for snany years previously special pen sion examiner, has done large part of the work on today's cases, aided by other inspectors.
 Postmaster General Payne returned to this city tonight over the Pennsylvania railroad from his trip of about fort night on the revenue cutter Onondaga, which was making it's cruise along the Atlantic coast.
 Shoulder Strap IontTaCt'
 A third indictment jointly names Will liam Gordon Crawford, well known so- cially in this city, August M. Machen, George E. Lorenz and his wife, Martha J. I,orenz, both of Toledo, O., for conspiracy. I,orenz was formerly an official of the postoffce department. Crawford repre- sented the Postal Device and Lock com pany, which received the contract for furnishing certain of the letter carriers satchels The contract called for shoulder strans for the satcheis which the indict- ment charges were never furnished by the contractor. being supplied instead by the United States under Machen's orders, al- though the contractor received the pay for them. For this concession 1t is charged that Crawford paid to Machen through the Lorenz about thirty per cent of the amount received from the government. The company, 1t Is stated. has received since July 1902 and up ot the present about s2l 0O0 from the gove ernment for the satch- els. Of this amount 1t is charged that Crawford paid the Lorenz $7000 and that the latter divided that amount with Ma chen.
 The Postal Device and Look company is a New Jersey corporation and it's officers are mostly New York men, but Crawford has been its vice president, manager and attorney in this city and has had entire charge of its business here. No one else in the company is implicated. Maurice Runkel of New York ,sty, Thomas W. Mc- Gregor, formerly in charge of the supplies for the rural free delivery service, and re- gently indicted in Baltimore under an- other charge. and August W. Machen are named jointly In another indictment for a similar transaction. It is charged that Runkel received payment for shoulder straps which he failed to furnish with car riefs' satchels as required under specified tions. and that the postoffice department furnished the straps for which the con- tractor was paid. For this concession the indictment alle,ses that Runkel paid sums to Machen and Mcdfesor agsregating ts