Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-30

Machen. Runkle and McGregor were in
dicted by the federal grand Jury In the Dis
trict of Columbia. on July 81. 1893, for con-
Charles E. Smith cases.-The cases al
legged to be for city delivery were bought of
Charles e. Smith of Baltimore, Md They
in construction. C. Ellsworth Upton, an
employee under McGregor in the free-deliv-
cry division, took up with Smith the mat
ter of supplying these cases. Upton sub
mitted to him sample case, and Smith
told him he could furnish them for 80 or Cd
cents each. Upton told him to make pro-
posal to Machen at 30 cents, which he DIG;
and 10000 cases were bought from him at
that price. Smith states that the profitS on
all the cases he furnished was 81, $50, and
that this amount was divided as follows:
Macneh... ...................,.... $4,UUU
McGregor. ..................... 1900
upon. OBSERVATION-DISCLOSURES. 2,OU
Upton and McGregor were indicted in
Baltimore on June rs, 1908, for conspiracy
to defraud.
One of the most important contracts for
free-delivery supplies is that for street let
ter boxes. These contracts are let period
lcally, every four years. In February, 1898,
the contract was awarded to Maybury &
Ellis OF Detroit, Mich. Machen became SUI
perintendent of free delivery in the follow
ing September, SIX months after the con-
tract had been executed.
Maybury states that not many months
after Machens appointment Eugene D..
Scheble, a dentist of Toledo, Ohio, called on
him and interested him in patent he had
acquired for a new letter box. Maybury
agreed to give Scheble % per cent in err
est In the contract witch he then held.
Maybury, when asked why he gave Scheble
an interest in this contract, stated that he
thought there was merit in Schebles box,
and that it might in the future become a
troublesome competitor.
IT Is not reasonable to suppose that a
man or affairs like Maybury, who had at
that time served two terms in Congress and
is at present mayor of the city of Detroit
should voluntarily deliver 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 become dangerous competitor for
another contract.
During the first year, that is, before
Scheble had interested himself in the con-
tract, there We're 2.7I0 boxes ordered, for
Which the department paid IS, 1894 May
bury profits, as near as can be estimated
amounted to $3,425 on that years bus. ness
During the second year, after Scheble be-
came interested. 1900 boxes were ordered,
at a cost of So, 500 %. The total profits of
the second years business was $3.50 of
which Maybury received three-fOurths or
sl5.3I3. and Scheble one-fourth, or s5.215
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 May
bury d. Ellis We're required to give him a
% per cent interest in the new contract
The evidence shows that Scheble RENTED
one-half of his profits in this contract to
Machen.
One Solomon c. Wynn submitted propo-
sal to furnish the various sized boxes at
Sl.1o, s2.2o and 81 %. as against the Scheble
box at $2GO. 1913 and $5,25 each. Wynn,
therefore became an embarrassing com
petitor. But Machen was equal to the oc-
casion: he stated to Postmaster General
Wilson that he had cousin Arnold ]. ].
n ,lnx
with Wynn in this box. and that he did not
think 1t proper for the contract to be award
ed to firm in which a relative of the su-
perintendent of free delivery was finan-
cially interested. The Postmaster General
evidently was impressed by the unselfish de-
votion 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 SOL 800. so.
The profits on this contract to Maybury &
Ellis aggregated something over $4,000
half of which was given to Scheble. which
the evidence indicates was divided equally
with Machen.
During the past four years q 900 letter
boxes have been distributed on rural routes.
They are unnecessary, since every farmers
letter box serves the purpose of both a de-
posit and collection box. Postmasters
wrote frequently stating that the boxes
were of no use. that in many of them there
was not letter deposited once a month.
Nevertheless Machen continued to have
over $4,000 has been paid for letter boxes
on rural routes. f.r i,
Machen and Scheble were indicted by the
federal grand jury in the District of Co
and fraud.
Package Boxes. 80. -. :
The large boxes fastened to the letter-box
posts or other supports are styled package
boxes. They were first contracted for in
1893. Isaac Mcclellan was the real con-
tractor at that time and has been since.
In 1897 Solomon c. Wynn. whose bid for
letter boxes was thrown out upon the fic-
ton that Machen had a cousin interested
with him, was also bidder on package
boxes, and offered to supply them for $3.50
each. But the bid was set aside with FIVE
others, ranging in price from 81 to IS per
box. and the contract given to Mcclellan
at S10.S0. The evidence shows that Me-
GIehan paid Machen royalty of 80 cents
box. Mcclellan and Machen have b,th
been indicted.
The Montague Indicator.
The Montague Indicator is a device at
tached to street letter boxes showing the
hours of collection. 1t was promoted by
w. w. Montague. postmaster at San Fran
cisco. Cal, and D. 8. Richardson, cashier
In that Office
A company was organized in 1899, with
capital STOCK OF 3lcU,VJ, OF Gb,UiU
shares par value s.. Immediately after the
company was organized. Richardson and
il. mes w. Erwin, at that time a post Office
inspector, visited Washington for the pur-
pose of securing the adoption Of the device
by the Post Office Department. Richard
son consulted George w. Beavers, who told
him that to insure success he ought u. dis
tribute stock among the officials who had
charge of the matter. Acting upon this
suggestion Richardson gave Machen con
shares of the stock, who requested that X
be issued in the name of H. G. Seger. AMI
Beavers 1000 shares that We're issued in
the name of Richardson. A short time
after this gratuitous distribution of stock
an order was given for 1000 indicators at
4.2J EACH
Seger. in whose name the stock donated
to Machen was issued, says he bought this
stock from Machen and paid him LOO for
1t. There is mystery about the true
ownership of the 1900 shares given to
Beavers. 1t was issued in the name of d.
s. Richardson. and at Beavers suggestion
assigned to John r. McDonough. Inc first
dividend. consisting of S120. was 70, warded
to Beavers February 6. 1901, and achnowl-
edged by him in the following letter:
PERSONAL
WASHINGTON. February 20, 1901.
My Dear Mr. Richardson: Yours Of Feb
ruary q, with Enclosure. duly received. 1
will hold the papers in your name for the
present until something decisive is known.
lad