The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-09-27
COMPANY PAID
THE EXPENSES
Details Of Inspector Erwin's Trip
to Washington.
CONTRACTS SOON FOLLOWED
MACHEN AND BEAVERS WERE
GIVEN STOCK.

q AN FRANCISCO. Sept. 26.-Uhe
hearing of Postal Inspector James
w Erwin, indicted for conspiring
with Beavers and Machin to defraud
the government was continued today
before United States Commissioner
Heacock.
When the case was called. United
states Attorney Woodwork i'm his
denomination, went over much of
The trip made by Erwin and Superin-
iendent Richardson TO Washington. At
this time Erwin admitted that all his
expenses were paid by the Postal De-
vice d Improvement company, but de-
MED that he secured any return what
ever for his services. The inspector
said that he spent several days I'm
Washington introducing Richardson 10
Machin and Beavers. with the idea Or
the postal device i'm view He admit
ted that he thoroughly endorsed the
invention, and supposed that he had
told Machen. Machen said he was "a
Yorably impressed by the invention and
would order ia installed in the free
delivery system.
Signed by Allen.
When asked if ne knew shat Muchen
would be instrumental i'm securing the
contract for the company, Erwin
stated that ne did not understand the
government procedure in matters o.
this kind. Later however, he said that
the contract for 900 devices came
q bout three weeks after he left Wash
ingtOn. and that the order was signed
10y George N. Allen, acting assistant
postmaster general
"Have yod been told that Mr. Mach
on and Mr.. Beavers held shares i'm the
company" Erwin was asked. He re-
piled.
"T was told by Richardson several
months ago that 1000 shares of stock
iu the Postal Device g. Improvement
company had been issued to man
named Harry SieEer. but that it was
intended for W. A. Machen. and that
1000 shares had been issued I'm the
name or McDonough. but intended for
George w. Beavers.
Had His Suspicious.
81 was not aware of the cact until
told ry him. although ] had suspected
several years ago that they were both
interested i'm the company.
The district attorney asked if Erwin
knew OF any other officials In any
other way being subsidized. An objec-
ton 10 this question was sustained
The witness said ne did not know that
accepting shares iu such company
WAS violation of the law.
Postal Inspector Robert Munro tcs-
titled that ne knew of the counts I'm
The Indictment only at second hand.
r. II. Esrey. secretary of the Postal
Device e. Improvement company. tes-
titled that Erwin was not and never
had been director or officer of either
company.
According to Espey. 100 boxes have
been sold 10 the government for 81,
S4.25 and $3.50 apiece, while the COM
pauy has sold 1000 TO the New Zen
land government for IS.
Cost of Device.
what is the cost at the factory Of
the device
Two dollars and seventy-flve cents.
Adding expenses. the cost is 1888. M
Richardson as president. got SIS a
month As secretary I was paid $50
month"
He said that Richardson did hold
II. 900 shares of stock, but that ne now
holds only ZOO as he has sold the
balance. Richardson's profits i'm divi-
dends. he said had been $1,000, while
he has received $500 in salary.
The district attorney objected to the
introduction Of evidence about Rich
ardson. but the commissioner admitted
il. The case went over until Monday