The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-30

money has been traced to Machen.
Machen, Cupper, and Long were in
d1cted by the federal grand jury on
July 81. 1903. for conspiracy to defraud-
Carriers Leather Cases.
When the system of carrier registra-
ton was adopted, Machen conceived the
idea that the carriers needed a small
case in which to carry the registration
book. He bought these cases from
Maurice Runlxle, OF New York, and
Charles E. Smith, of Baltimore, Md,
without competitive bids. Those pur-
chased from Runk1e were said to be for
the rural delivery service On October
~, 1902, 900 had been ordered. though
at that time there were but 11,0o0 rural
carriers in the service.
Runkle was not leather manufae-
turer, but a dealer in clothing. He re-
ceived from the department 80 cents
each for the cases and had them made
by leather manufacturers, paying from
% to Is cents each. The 21,000 cases
cost Runkle SIS, 831. SO, while the govern
ment paid him 80. making him a
profit of $13,074.34. Runlxle paid Machen
&, $50 or worthless mining stock and
also gave McGregor. a clerk in Machen's
office, certain sums of money.
Machen, Runkle, and McGregor were
indicted by the federal grand jury in
the District of Columbia, on July 81
1903, for conspiring to defraud.
Charles E. Smith cases-The cases al
bought of Charles E. Smith. of Balti-
more, Nd. They were exactly the same
as the Runkle cases in construction. c.
Ellsworth Upton, an employe under
McGregor in the free delivery division
took up with Smith the matter of sup
plying these cases. Upton submitted
to him sample case and Smith told
him he could furnish them for 80 or so
cents each. Upton told him to make a
proposal to Machen at 80 cents, which
he did; and 10000 cases were bought
from him at that price. Smith states
that the profits on all the cases he fur
nished was $11, 450, and that this amount
was divided as follows:
Machen "a OUO
McGregor ..-........ .............. z0Uo
Upton ........... ................-- z,VvU
SnlIn ......--...-.-. $500. os4oo
Upton and McGregor were indicted in
Baltimore on June %, 1903, for eonspir-
aey to defraud.
Street Letter Boxes.
One of the most important contracts
street letter boxes. These contracts
are let periodically, every four years.
In February, 1893, the contract was
awarded to Maybury & Ellis, of De
troit, Mich. Machen became superln-
tendent of free delivery in the follow
ing September, six months after the
contract had been executed.
Maybury states that not many
months after Machen's appointment
Eugene d. Scheble a dentist of To-
ledo, Ohio, called on him and interest
ed him in a patent he had acquired
for new letter box. Maybury agreed
to give Scheble 25 per cent. interest
in the contract which he then held.
Maybury, when asked why he gave
Scheble an interest in this contract,
stated that he thought there was
merit in Scheble's box. and that it
might in the future become a trouble
some competitor.
1t is not reasonable to suppose that
a man of affairs like Maybury who had
at that time served two terms in con-
gress and is at present mayor of the
city of Detroit should voluntarily de-
liver to a stranger from Toledo, Ohio,
one-fourth of his profits in so valuable
a contract because he feared that two
or three years hence that man might
another contract.
During the first year, that is, before
Scheble had interested himself in the
contract, here were 2,74o boxes ordered,
for which the department paid SIS, 1s9. 40.
Maybury's profits, as near as can be
estimated, amounted to $3,425 on that
years business. During the second
year. after Scheble became interested,
$50, 526.25. The total profits of the Sec
ond years business was $500, of
which Maybury received three-fourths,
or $15,375, and Scheble one-fourth, or
$5,215.
In 1897, when new contract was to
be made, the box which Maybury had
acquired from Scheble, known as the
Scheble box, was the one selected, and.
as a result Maybury & Ellis were re-
quired to give him so per cent. in
terest in the new contract. The evil
dence shows that Scheble RENTED
one-half of his profits in this contract
to Machen.
One Solomon c. Wynn submitted a
pre- cosal to furnish the various sized
boxes at $1.75, 1925 and $2.75, as against
the Scheble box at $3.50, s3.25, and $5.25
barrassing competitor. But Machen
was equal to the occasion; he stated
to Postmaster General Wilson that he
had cousin, Arnold ]. J. Machen, of
Toledo, Ohio. who was interested with
Wynn in this box, and that he did not
think it proper for the contract to be
awarded to a firm in which relative
of the superintendent of free delivery
was financially interested. The post
master general evidently was impressed
by the unselfish devotion of Machen to
the public interests, for Wynn's bid
was discarded, though in so doing the
cost of letter boxes during the contract
period was increased ISL, $751; 80 The
profits on this contract to Maybury &.
Ellis aggregated something over $50, 900,
half of which was given to Scheble,
which the evidence indicates was d.
vided equally with Machen.
During the past four years 27 900 let
ter boxes have been distributed on
rural routes They are unnecessary.
since every farmers letter box serves
the purpose of both deposit and a col
lection box Postmasters wrote fire.
auently stating that the boxes were of
no use that in many of them there
was not letter deposited once a
month Nevertheless Machen con-
tinued to have them erected. and dur
ing the last four years over $4,000 has
been paid for letter boxes on rural
routes
Machen and Scheb1e were indicted
by the federal grand jury in the Dis
tricr of Columbia September 8, 1S93 for
conspiracy and fraud.
Package Boxes.
The large boxes fastened to the let
ter box posts or other supports are
styled package boxes They were first
contra cted for in 1898. Isaac Mcclellan
l.lnra4r-a.nAcr.. n