New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-06
-N.fCHEN INDICTED.
Giues $50 900 Bail for Trial an Octo-
ber-His Defence.
fnr TELEGRAPH TO THE TRIBUNE.


inr TELEGRAPH TO THE TEIDUSEl
Washington, June 5-The grand jury to-day
.eturned an indictment against August w Ma
chen formerly superintendent OF the free oe
livery service Of the Fostoffice Department, who
was arrested several days ago charged Win
sharing profits on government contracts for let
fer box fasteners The Indictment was found for
violation OF Section 5,501. Of she Revised stat
,Ites the penalty Tor which is fine not more
than three times the amount asked or accepted
or received, and by imprisonment not more
than three years" The amount which me ~
siictrent SAYS he received Illegally is $685. 90
Nachen was IN court with his attorneys when
the grand jury reported. and Immediately gave
$4,000 bail for appearance in court. His bonos-
men were O. G. Staples, David Moore f. NJ.
Criswell and Emanuel SPEECH, OF this cl'N. Inc
trial will be held in October
By securing an indictment against Machen be-
fore tomorrow. the day for his preliminary
hearing before Commissioner Taylor, the gov
eminent has avoided the necessity OF showing
its hand at a preliminary hearing. The pro-
ceedings before the Commissioner Will be aban-
doned.
MACHEN'S SIDE OF THE CASE.
Details of the evidence against Machen which
the government has not thus far been compelled
10 disclose have been revealed by Machen TO
some of his friends II was not known until he
said so that the postofice authorities have GER
tain checks which were sent 10 Machen, pre-
sumebly in payment of his profits on the Grof
letter box fastener. Machen has said however,
that all the checks which have been secured by
the postofTice inspectors were sent to him by his
business partner. George z. Lorenz, of Toledo.
Ohio. Mr.. Lcrenz was appointed postmaster OF
Toledo By President Cleveland, and, although he
does not now hold that office, he is said to be re-
sarded as one of the substantial citizens of that
city Machen does not know how the govern
-71ent obtained these checks, and does not say
whether they tailed in amount with sums which
bear 30 per cent relation with the payments
TO Croft Brothers Machen asserts that his
partnership with Lorenz was strictly legitl,
mate ore. and that the checks transmitted 10
him by Lorenz were in connection with the
mining business which the firm conducted
Machen says that the one for the largest amount
represents a personal loan TO him from Lorenz.
Machen further informs his friends that he
was not a partner in the Croft Brothers con-
Germ, and that he did not receive any OF the
profits from the sale of the letter box fastener
20 the government. He declares that no wrong
doing will be proved against him. and that the
only possible cause there may be Tor crluclsn
IF his administration. far as the Croft fast
ener is concerned, is that the price paid for the
article may be considered excessive. This was
necessary, he maintains. because the article was
a patented affair. and the larger price paid Tor
il was in line with the universal practice in the
purchase OF articles which are patented ana
where there is no competition. - $780,
Stories were printed some days ago TO the Ell
feet that LorenZ was the gO-between IN the
Machen-Groff deal and the above explanation
made by Mr.. Maehen gives his presentation OF
this matter
The explanation which Afachen is making to
his friends is not news TO the government Off
Gals, VINO have been familiar with the case
from the first. This same explanation was
made 10 the officials who questioned Machen for
three hours the day he WAS arrested. When
asked how such explanation would affect the
strength OF the governments case against
Machen these same officials remarked signif1-
cantiy that there nothing novel in the mat
Ter TO them. and that the declaration had not
deferred them from going ahead with their
case.
Postoflce Department officials expect that the
grand jury will report the cases Of Croft
Brothers early next week.
Machen's counsel made the following state
Inent tonight:
The Indictment found against Mr. Machen by the
grand jury is such q lengthy document that We
and we cannot therefore for that and other rea-
SONS, say anything specific about the charges con
tained in the nine different counts. AT the in
and under the direction OF the authorities
d warrant of arrest against Mr.. Machen asked
for and obtained from United States Commissioner
Taylor and a lengthy supporting affidavit was
filed. In which direct charges OF criminal acts were
made Cpen Mr.. Machen's arrest We demanded
government and al the request of the government
a continuance was had until June s Mr.; Machen
in the interim no steps would be taken to deny him
the preliminary examination to which he en-
titled The authorities responsible for the issu-
ance of this warrant have seen proper to bring
the same charges pending before Commits
sioner Taylor TO the attention OF the grand jury.
The grand jury has in consequence indicted Mr..
Machen before the date fixed for the full hearing
before the United States commissioner. II you
the for the proceedings you will
have 10 seek them from the prosecution. We do
not know. We can only surmise. and that much
the public can as well do as counsel for the de
fence. Suffice il say that the legal effect OF this
Of policy (Which is unusual and unfair. il
unprecedented ia this jurisdiction is TO deprive
the defendant Of open public investigation into
fhe truth Of these charges. 10 which he Is fairly
entitled and which sound public policy Touch-
safes him
This action may may not be technically legal.
but there seems TO baYs been no necessity for the
pursued. Mr.. Nachen has all the while been
within the jurisdiction Of the under heavy
bond. and ready to respond 10 any process Of law
The the DEFENDANTS counsel viii pursue in
the matter now be made public, but sooner
later. and IL will be than people
want: the whole matter viii be gone and both
sides Will be heard. where parte proceedings
VIII be out Of order.
TTDIFLT n