Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-10
What He Said It Was In
dependent Of His Salary.
THAT MINING COMPANY
TREASURER BAKER MAKES A
STATMKNT ABOUT IT.
MI. Speich Makes an Explanation Of
His Change to the Rural Free
Delivery Service.

According to his own statement, August
w. Machen has an income independent Of
his former salary general superinten-
dent of free delivery, Of $1,000 a month.
This income is derived, he says from his
Oil properties in Ohio. This statement was
made by Mr. Machen short time before
the present post office Investigation was be-
gun, and in a moment when he was feeling
in a particularly happy and optimistic
frame of mind.
Mr.. Machen's friends declare with much
vehemence that he is not being treated
fairly by the secret manner in which the
government Is conducting its case against
him. The abandonment of the preliminary
hearing, it is stated, places the govern
ment in the attitude of condeming Machen
evidence so that the country may have
no means of judging whether there really
is a case against him or not.
The Mining Company.
With the understanding that an investi-
cation has been begun or is about to begin
into the official acts of H. H. Rand. con-
fdential clerk to Postmaster General
Payne. interest Is manifested in the Ma
tional Capital Mining Company, of which
Mr.. Machen Is president and Mr.. Rand vice
president. Mr.. Rand was seen by q Star
reporter today and asked IL he had any
statement to make in view Of the notoriety
he was getting He replied that because
of his relations with the Postmaster Cen
eral he had refrained from being interview
ed However. he believed that statements
had been made which should be corrected.
particularly in connection with the copper
mining company with which he is connect
ed.
Mr.. Rand referred the reporter to Mr..
Henry M. Baker, treasurer Of the mining
company. with whom he said he had re-
Gently had a conference. and who he said
would undoubtedly be able to correct these
false Impressions.
Mr.. Baker, who was formerly a mem
Der Of Congress from New Hampshire, and
later candidate for the Senate from that
state, gave the following explanation OF the
mining company:
Treasurer Bakers Statement.
1.-THE company was organized under the
laws Of Virginia a year ago last April. with
capital stock Of $4,000. The work OF
perfecting the organization was done by
myself. Mr.. Machen was elected president,
Mr.. Rand vice president. Mr. King secre-
tary and myself treasurer At the annual
election in April last Mr.. King declined re-
election and Mr.. F. NJ. Criswell was elected
in his place.
The property was originally located by
DR.. 8. w. Scott In the state Of Michoacon,
Mex, and the title was put In the name Of
Mrs. Sarah Denton Scott. Upon the or
ganization of the company upon the terms
which had been agreed upon, which was
that the parties owning the mineral rights
IL
capital stock and $4,000 in cash. the rights
vested in Mrs. Scott were transferred to
the company. The property consists OF
nearly two thousand acres. on which there
are six distinct mines, more or less de-
veloped, the company still being engaged in
the work Of developing the outcroppings Of
mineral in several locations.
As has been said, $50 900 OF the stock
went to the parties represented by Mrs.
Scott, and about $4,000 shares have been
sold at 371s and 50 cents share, from
which sales has been derived the $15,OOO
agreed to be paid to Mrs. Scott, and also
money for taxes and development. The re-
mainder of the stock. or $4,000 shares. still
remains in the treasury of the company.
No officer Of the company has received any
compensation for his services.
company. was acquainted with DR.. Scott
and under an agreement with him was in
strumental in the formation of the COM
pany. 1t Is understood by the other share
holders that he received some compensation
from the SCOTS for his services in that re-
gard. 1t is a matter Of no concern to the
company what he received. as whatever he
did receive came from the share Of the
SCOTS. which was a part of the purchase
money of the stock.
mo share Of the stock Of the company
has been disposed Of other than for cash,
nection with price. The majority of the
stock is undoubtedly owned by parties in
this city. I do not know the employment
Of the stockholders. but some Of them.
notably Mr.. hlnG, MT. hanQ, Mr.. Machen
and Mr.. Fenton, were in the employ of the
Post Office Department. I never heard OF
any subordinate being 'bulldozed' or I'M
duly Influenced in any form. shape or man
ner to take stock in the company"
Gen. Dudley's Fee.
The payment Of fee of 500 to General
William w. Dudley. member OF a local law
firm and former commissioner Of pensions.
in connection with the location of postal
substation in the drug store of John w.
Stone in the business section of this city
has been Investigated by the post office in
spectors.
General Dudley acknowledges having been
paid for his services in connection with the
location OF the substation, and says that
1t was entirely legitimate transaction.
Mr.. Stone," said General Dudley today,
was a Maryland republican. who came
to me and said he believed I could help
him in getting the substation which he
desired. I consulted Postmaster Merritt,
pleaded for Mr.. Stone as best could, and
succeeded.
-Four or five years ago I helped DR..
Prentiss to secure substation in that VI
cinity, but / did not charge him for the
work. Mr.. Stone came to me as stranger.
I am aware that 1t Is not high class Of
legal business, but we have to take up lit
tie matters of that kind as occasion offers
to meet our Office expenses"