Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-06-23
FIVE INDICTED
In, Connection With Alleged
Post Office Frauds.
Mr.. Machen, Croft Brothers, Mr.. and
Mrs. Lorenz Included.
President Determined to Go to Bottom
of Affair.

Jury which has been investigating pos
tai affairs, Saturday, returned an in
dictment against August w. Machen,
DIler b. Croft, Samuel A. Croft, George
T. Lorenz and Martha J. Lorenz, the
two latter being residents Of Toledo,
Ohio.
The specific charge is conspiracy to
dcfraud the government. The indict-
ment is based on Section 5440 of the Re-
vised Statutes, which provides pen
atty of $4,000 or two years imprison-
ment, or both, in the discretion of the
court.
There are IL counts to the indictment,
II of which are substantially the same
as those previously found against
Machen and the Groffs. The first count
of the present Indictment, which re-
lates to the conspiracy charge, sets
forth that on June 20, 1900, in the Dis
trict of Columbia LOrenZ, Mrs. LOrenz,
Machen and the Croft Bros, "consired,
combined, cOnfederated and agreed to
defraud the United States government
of it's money" by the following ar
rangement Machen should recommend
to the first assistant postmaster gem
cral the purchase from the Croft Bros.
of a large number of the Croft fasteners
for mail boxes at $1.25 each and should
procure payment Thereof, upon which
the Croft Bros. should retain GO per
cent of such payment, or IS cents for
each fastener; and the Croft Bros.
should then pay to Mr.. and Mrs.
Lorcnz. either or both, the remaining
40 per cent which was to be convert
cd. appropriated and applied to the
of nd
chen.
The Indictment says that this agree
mcnt was carried out by Machen on June
s. recommending the purchase of 5000 of
the fasteners at the price mentioned :
that the Croft Bros on the same date
presented a bill for these 5000 fasteners
ut the price mentioned; that on Septcm-
Der - Of the same year Machen recon-
ncnded to the first assistant postmaster
general the payment of that bill: and
that the Croft Bros. Having thereafter
and on September % of that year recciv-
ed from the United States $500 in pay
m"nt of the bill' Dller y. Croft, ON
oct 20. same year, paid $4,000 to George Il.
and Martha j. LorenZ. The testimony
upon which the Indictment was found
was given by Post Office Inspector Wal
ter s. Mayer. Paul T.. Williams and Jo-
scph f. Farrell and Theodore w. War
urr and William Il. Lewis, the two latter
being bank men.
The Croft Bros. and their counsel and
the counsel for Machen were in court
when the indictment returned. Ma
chen was not present. 1t was announced
that neither Machen nor the Groffs would
be rcarrcsted: also that they would no,
be required to give a new bond.
Assistant District Attorney Taggart an
nounccd that the investigation into pos
tai affairs by the grand jury will be con-
tinucd, but that the Indictment presented
today completes the work of his ofllct
SO far as the grand jury has acted.
The Post, tomorrow, will say that
among the matters which Fourth AS
sistant Postmaster General BristoW is
investigating is the purchase from a
California company. The Postal De-
vice and Improvement Co., of some H.
GOO letter devices for indicating the
hours of collection of mail. The inven-
ton is that of the postmaster at San
Francisco, it is said.
1T is also said that 1000 of these de-
vices originally We're ordered at a cost
of 81 or more each, or profit of l0t
per cent. on cost and the allegation Is
made that IL further order for 10oOt
more was placed, Notwithstanding the
original 1000 devices were not used, bu'
were reposing in a storehouSc. Tho
company controlling the device wa:
largely made up of California pOsta
employees and the Post will say that i
is informed cX-Representativc Loud O
California, former chairman OF th'
House post Office committee, took al
active part in their behalf and wrot
a several letters urging the device in TIT
department and in one of them said i
would be an accommodation to him l
the matter was attended.
After the company had difficulty IL
securing it's money for the device, Mr.
Loud the Post will say. appeared u
the department in it's behalf, but spcci
fically diSclaimed any interest in tn
company other than it was compose
of his constituents. He took tn
ground that whatever the necessity o
lack of necessity for the device, con
stiluents of his had secured the con
tract and furnished the articles callc'
for Therefore, he believed they shoul'
be paid as the government had stipu
lated to pay them.
The allegation was made, the Pos
will say, that $4,000 of the deficienc.
of $1O5, 900 in the free delivery servic
with which Mr.. Machen is charged. wa
due to purchases of the device in ques
ton, but at the post office department
this was denied and the statement tina
while the matter was under investiga
ton the complaint might have been re
dictionary and intended against the In
vcstigation.
Complaints also had been made, i
was stated, that at the instance of MI
Loud the rolls at the Preside had bee
padded with postal employees, but a
the post office department they wer
without any knowledge of such u thin
one way or the other.
An effort was made to get state
mcnt from Mr.. Machen on the subjec
but he declined to either affirm or den
the reports.
CAREFUL INVESTIGATION
To Be Made of Important Offices