The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-08-01


ard Mrs. GEORGE y. Lorcnz. I'M whose
name the money was. deposited, have
been indicted FOR conspiracy 10 defraud
:. 'Crawford was deputy auditor for the
Dostoffice deDartment from june T. 1876,
TO September l5 1896.
'.InaISqi Nfacnrn entered into an tfsrser-
mcnt with Maurice RunNel Of New York
to furnish a small leather case for the
free delivery service Tor which the oe-
partment paid Iinety cents each. RMS
contract was entered into without COM
petition. and the cases cost Runkle abOut
thirty cents each.
oence that RAnlSlc divided his Profits Of
siXtv cents per case with Macheu and
Afcfireeor This is analogous with the
B3ltiaore case Ia which McGregor and
Upton figured and have been both in
dicted Machen Runkle and McGregor
have been indicted Ia this case.
"Tu 1SsS. through the free delivery di-
vision a contract was made with Leopold
Stern Of Baltimore Tor carriers satch-
els The specifications required Stern TO
furnish COMPLETE satchels. including the
shoulder sfra Us. the shoulder strap being
speciilSailN , described as a part of the
satcnel and TO be furnished by the con
TRACTORS After the contract was entered
into Stern was relieved by Machen from
furnishing the straps. the full price being
Maid for the satehels In consideration
or being relieved from furnishing the
STRAPS by Machen. Stern paid to w. G..
Long LARGE amount OF money, which
Long divided with Machen.
0ehAA~A y CA epe~essO0Os
''The straps which stern had been re-
iiovea from furnishing were purchased
By Machen from firm without COM
nensation lie required this New York
firm however 20 pay a commission Of
four cents per strap. which commission
WAS collected by VIC. Long and divided
between Long and Machen- In this
tr@nsacion Machen not only secured
moues frogn Stern for relieving him from
furnished the straps which he had con-
tracted to furnish. but required the man
from whom he bought the straps to pay
him n commission on the straps which
he was giving to Stern. Long was used
as the Intermediary in both transactions.
over AZZ-0W was paid by the department
for straps that were furnished 20 Stern
though stern had contracted 10 furnish
them himself
Long. Machen and stern have been
Indicted i'm this case for conspiracy to
uefraud the government
The department through the free de-
livery division, entered into an agreement
with John I. CupDer Of BOokhaveu, Pa.
10 furnish material and PAINT all of the
letter boxes, package boxes and letter box
posts I'm the United States, for which be
was to receive . cents for each post
20 cents for each letter box and one dol
lar for each package box. The terms
allowed Cupper were far in excess Of the
former cost of painting. The boxes i'm some
or the larger cities were painted fire.
quently, sometimes every year. while in
smaller cities, in the more remote sec
tons of the country they were painted
not to excess once In five OF six years.
Ceiyed from painting the boxes he paid
70 w. G. Long. who divided ii with Ma
phen-
..trhe contract with the manufacturers
Of letter boxes requires them 10 paint
me boxes, yet Supper was ordered by
hachen 10 paint the boxes at the factory
Rnd the department has paid him over
$4,000 for this unnecessary painting Cup
per paid Long part of this money. who
HVided 10 with Machen.
Copper. Long and Machen have been
inflicted for conspiracy to defraud the
government"
The straps for which It is alleged the
government was made to pay twice, were
kupplied by a firm which a said to
have acted entirely in good faith One
Of the indictments sets out that this firm
In one Instance made payment of Sl.160
to Long, who, according to the evidence
cited I'm the indictment. paid Machen
$3.50 of this amount The supply Of the
straps continued until the pOstoffice in.
VestigatiOn began and supply matters
we're heduDl under orders of Fourth As
sistant Postmaster-General BristOw.
1t Is explained at the department that
Crawford had the contract for what were
called the A. 3 and G satchels. being
those for city delivery. rural free de-
livery and collectors In their cities while
Runkle had the contract for supplying
the large size canvas duck satchels for
the collectors. These contracts were for
the six years, 1900-1906 Stern's contract
was prior 10 these.