The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-05-28
Sensational Developments
Revealed Yesterday.
MACHEN'S BIG RAKE-OFFS
General Supt Of Free Delivery Service Taken
Into Custody---Hearing Set for June 5
-.-RsIeased on Bond---0ther
Particulars.
(By the Associated Press

(By the Associated PreSs.)
Washington. d. c., May 27.-By far the
most sensational development of the Post
office investigation up to this time oc-
Cured today when Augustus w. Machen,
the general superintendent of the free
delivery service, was arrested on a war
rant issued upon the information of Post
office Inspectors, charging him with hay-
ing received ''rake-offs" from contracts
made with the local firm of Croft Broth
ers for a patent postal box fastener. The
warrant specifically charges him with re-
ceiVing $1S,9S1.7S since August s. 1900. 1t
Is alleged, however, at the department
that this amount does not represent all
that Machen obtained In connection with
these contracts, it being charged that he
himself profied by them for several years
prior to the date of first contract men
toned in the warrant. other arrests are
to follow.
Immediately after Mr.. Machen was taken
into custody, the Postmaster General is
sued an order removing him from office.
He had been practically under suspension
for a fortnight pending the investiga-
tion into his bureau.
The discovery of Machen's alleged inter
ests In the contracts was made quite ac-
cidentally by the inspectors, some three
weeks ago, and since then their energies
had been directed toward making out
case. Last night after the authorities
had become convinced that they were in
possession of the necessary evidence Mr..
Machen was notified to appear at the de-
partment this morning. He did so and
was subjected to swearing process by
the inspectors and Mr.. Bristow for three
hours, but no admissions that he had
profited by the contracts could be Sc
cured from him. He declined to an
swer many questions on the ground that
they related to his private business. but
insisted to the end that he had not re-
ceived cent improperly.
Nevertheless, he was arrested on the
warrant which had been prepared and
taken before a United States Commission
er. where his attorney Immediately de-
manded a full hearing Assistant Dis
trict Attorney Taggart. however, was not
ready to proceed with the case and the
hearing was set for June s.
Mr.. Machen gave 500 900 bond, furn-
ished bv a philadelphia bonding company,
for his appearance declining to accept the
proffer of friends TO go on his bond. After
his release he declined to make any state
ment beyond the single declaration that
the whole thing was a grand-stand play
and would come out all right. HIS at
torneys declared that at the proper time
they would show conclusively that he had
been guilty of no wrong IN connection
with the contracts, and, on the contrary,
they would be able to show that his ad-
ninistration of the free delivery service
had been characterized by ability and IN
tecrity. The department officials claim
that their evidence is conclusive LII Is
understood that civil suit will be entered
10 recover from Machen the amount ne
l. alleged to have received on the con-
tracts.
THE SPECIFIC CHARGES.
washington. May 27-The warrant Tor
Nsocben,s arrest was drawn by Assistant
1rn;ted states District Attorney Taggart
sgor, statement made today by Wal
ter S. Mayer, postotf1ce inspector iioh
tho chicago district, before United states
Commissioner Anson S. Taylor IN TINS Guy
Tnsnector Mayer in the several counts IN
the complaint alleges the receipt by MI
Mcahen of several specified sums aggre-
eating s1S.9S1.78 in connection with the
purchase for the use OF the department Oh
certain letter box fasteners.
After setting forth Mr. Macneh olilclai
nos;tion as superindent OF free delivery In
the Postoffce Department. the complaint
saws that as such superintendent Macheh
u,as charged with the duty and invested
with the mower. under the supervisor and
with the approval of the First Assistant
Postmaster General of purchasing ior ene
use of the department certain aIlicles'
among them "letter box fasteners. IN
spector Mayer then states that one sam
uel G.. Croft and one Diller B. GroH are
the owners of a patented Inventloh ioL
such letter box fasteners and were engaged
in business as Croft Brothers. The state
ment then says that on July 2, 1900, Su-
perintendent Machen procured the Is
suance Of an order by the First Assistant
Postmaster General for $1,000 for complete
and 2OS7 half fasteners of the Croft va
rlety at the rate of $1.25 for one complete
and s2.25 for two half fasteners, and that
as superintendent he recommended and
the Treasury paid $7.551.SS to the Grof1
Brothers Tor the fasteners aforesaid. The
statement then proceeds:
Ine sald order was procured by the
August M. Machen upon a coIlusiye un-
derstanding and agreement between him
and the said Diller B. Croft. that he. the
said August w. Machen was to be paid a
certain proportion of the proceeds of any
warrant to be issued in payment of the
articles supplied under said order and the
promise of him, the said Diller B. Groff
to pay such proportions and that there