The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-01
THREE MEN GIVE BOND
Among Those Charged With Malfeas-
ance is William Gordon Crawford,
Member of One of the Most
Exclusive Clubs in
Washington.
(Bv the Associated Press. }

Washington, July 31.-The postoffice in
vestigaton developed another sensation
today, the Federal grand jury returning
seven indictments, involving nine people
for alleged conspiracy and bribery in con-
nection with postal affairs. Angus w.
free deiery service, was named jointly
with others in four of the indictments.
The other parties were William Gordon
Crawford, who was deputy auditor for
the Postoffice Department from June u,
1898, to September 15 1897, and is a mem
ber of one of the exclusive clubs of this
city; Leopold ]. Stern of No. North Gay
street, Baltimore; George E. Lorenz, of
Toledo, formerly a prominent government
official, and Martha ]. Lorenz, his wife:
John T. Cupper, mayor of Lock Haven,
Pa; William c. Long, an Ohio man, who
has spent much time in this city In recent
years, and an intimate friend of Machen;
Maurice Runkel. of New York city, and
Thomas w. McGregor, a protege OF
Machen, who was messenger at the be-
ginning 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 srvice.
Crawford voluntarily appeared in court
soon after the indictments were returned
and furnished $4,000 ball. and McGregor,
likewise gave $1,000 bail Long was ar;
rested at him home, where Deputy Mar
shal Sprngman found him in bed. He was
released on $4,000 bonds. His was the
only local case in which a bench warrant
was issued. owing to the voluntary ac'
tion of the others indicted.
Machen was not rearrested under the
new indictment as he gave bonds in $2O.
900 under his indictment several weeks
ago. and the authorities fwelt this was
sufficient to ensure his appearance.
Warrants have been issued for the out
of town parties indicted and their arrest
is expected within the next twenty four
hours
The grand jury has not completed tie
work laid before it by the postal investi
gators and other indictments may be ex-
pected later on possibly within a week
or two. 1t is understood that two addi-
tional cases against one of the parties in
dicted today, former prominent bureau
official, are being inquired into by the
grand jury and that the acts of another
former high official of the Postoffice De
rartment, already under Indictment by the
Brooklyn grand jury, are being investi
gated.
Four of the indictments name Machen
jointly with others. Machen. Cupper and
Long are named jointly in one indictment
for violation of the conspiracy section of
the revised statutes. The Indictment sets
out that between July 1st. 1897, and July
1st. 1901, Cupper induced Machen to give
him (Cupper) the contract for furnishing
materials for and employment in the paint
ing of letter boxes, Supper paying Machan
commission of ten cents a box Long
acting as an intermediary. Another In
dctment against Stern, Long and Machen
based on alleged violation of the same
statute. charges that Stern entered into
a contract, with the government to furn.
sh letter carriers satchel and letter col
lector satchels for the free delivery SER
vice, the satchels to be supplied in each
case with a leather shoulder strap. The
cost of each of these straps to Stern In
complying with his contract woul3
amount to twenty-five cents. The indict-
ment charges that Machen in his official
capacity was to procure shoulder straps
at the expense of the United States and
deliver the same to Stern to be used by
the latter, in the performance of his con-
tract, in order that Stern might save
twenty-five cents on each satchel delivered
to the United States. 1T is further charg
ed that portion of the saving to Stern
should be retained by him, and the resi-
due paid to Long to be divided between
Long and Machen
A third indictment jointly names Will
liam Gordon Crawford, August Machen
George E. Lorenz and his wife, Martha
J. Lorenz, both of Toledo Ohio, for con
spiracy Crawford represented the Pos
tai device and Lock Company, which he
ceived the contract for furnishing certain
of the letter carriers satchels. The con-
tract called for shoulder straps for the
satchels which, the indictment charges
were never furnished by the contractors
being supplied instead by the United
States by Machen's orders, although the
contractor received pay for them. Fol-
this concession. it is charged that Crawford
paid to Machen through the Lorenz's
about thirty per cent. of the amount re
ceived from the government. Maurice
Runkel, of New York City, Thomas w