The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-09-16
INQUIRY INTO The
POST-OFF|CE CASES
The Federal Grand Jury Con-
tinueS its Work.
ss
BEAVERS Is EXAMINED
After Some Argument Commissioner Hitchcock
Adj,urns This Until The i8k---The Ques-
ton of the Validity of The Indic.-
ment Not Decid d.
(By the Associated Press.)

Washington, Sept. 15.-In accordance
with decision of Acting Attorney Gen
eral Hoyt, declaring that the subpoena
day to appear at the hearing in New
York today of the case of George w
Beavers, the former head of the Salary
and Allowance Division, Postoffiee De-
partment was void, the Postmaster Gen-
eral has designated Postoffice Inspector
Lawrence Letherman as his representa-
tive at that hearing. Mr. Hoyt advised
that the Postmaster General send a rep
resentative and decline to produce any of
the government records called for.
Postmaster General Payne said today
that it was a physical impossibihty to
comply with the subpoena in any event,
aside from the law in the case. The sub
pocna he pointed out, called for papers,
documents and records covering years OF
operation of the department to be pro
duced before the United States Commis-
sioner Many of these were in constant
use and scattered over the country.
The Federal grand jury resumed It's
consideration of Postoffice cases, but did
not progress sufficiently to report any
indictments. Several witnesses were eX-
amined. One of the first :adictments Is
expected to be that of a former law Off
cial of the department. The grand jury
also has been celebrating over the case
of a former assistant attorney general,
who at one time was postmaster general,
and considerable evidence has been sub
mitted by postoffice inspectors and others.
This case is connected with that of
former law clerk. Manager Bowman, of
the Southern Mutual Investment Assocla-
ton, and, other witnesses today testified
before the grand jury in these cases. It
is expected that the grand jury will take
early action in both cases. There are IN
the neighborhood of a half dozen other
indictments expected.
Charles H. Robb, the assistant attorney
general for the Postoffce Department,
has decided to continue permanently IN
that office instead of returning to the
Department of Justice at the completion
of the postoffice investigation.
Postmaster General Payne today ad-
mitted that the resignation of George {.
Christiancy, the former law clerk of the
department was submitted some weeks
ago, but that action upon it had been
deferred pending the Investigation Of the
affairs of that office.
New York, Sept 15.-The preliminary
examination of George w. Beavers, the
former head of the Salaries and Allowance
Division of the General Postoffice De
partment, under the indictments returned
against him by the Federal grand jury
of Brooklyn, charging him with con
spiracy to defraud the government
through completely with the Brandt-Dent
Manufacturing Company, of Watertown,
Wis, was commenced today before Uni
ted States Commissioner Hitchcock.
When the examination was commenced
Postoffice Inspector Little was called to
the stand for the purpose of indcntifying
the defendant as required by law. This
being done, Max Steure, for the defend
ant moved to dismiss the proceedings on
the ground that the facts as alleged II.
the complaint were insufficient and that
no proof had been presented for the COM
mssioner's consideration in support of the
Indictment and complaint as required by
law. Mr.. Steure also attacked the valid
ity of the indictment. This point is i'm
pcrtant on account of the statute of limi-
tations The Indictment returned on July
%, 1903, alleged that a crime had been
committed on July 26. 1900. 1t has been
ccntended that a three-year limitation
applies and that no new indictment could
now be returned.
Commissioner Hitchcock said in his
opinion the certified copy OF the indict-
ment was receivable a. proof and he would
admit it as such. Upon the question as
to the validity of the Indictment he was
not so ready to decide. The commissioner
then adjourned the examination until Sep
tember IS, at which time he will give
decision on the point at issue.
) Upon the request of counsel, the ar
raignment of Mcclellan and Huntington
was adjourned until September 2S
Isaac Mcclellan, the head of the Co.
lumbia Supply Company, of which George
H. Huntington is treasurer, made state
ment today in explanation of his connec-
ton with August W. Machen. The in
dictment charged conspiracy to defraud
the government through the sale of the
large metal boxes for mailing packages.
Mr.. Mcclellan says his company paid a
royalty of fifty cents a box to Mr. Lozier.
of Cleveland, inventor of an improvement.
and that on Lozier's request the royalty
was paid to Machen during Loziers ab
sence in Europe for delivery to Lozier's
wife. Mcclellan claims the contract was
obtained before Machen came into the
DoStal service