The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-06-26

WASHINGTON, June 22.-The grand jury
which has been investigating postal
affairs, today returned an indictment
against August w. Machen, Diller B.
Croft, Samuel a Croft, George E. Lor-
enz and Martha J. Lorenz, the w lat
ter being residents of Toledo, 0. AS
previously stated in these dispatches,
the specific charge is conspiracy to de-
fraud the government. The indictment
is based on Section $40 of the Revised
Statutes, which provides a penalty of
$40, 900 or two years imprisonment,
or both in the discretion of the court.
1t was said by Assistant District At
torney Taggart today hat the indict-
ment was found against Mr.. and Mrs.
Lorenz by reason of the fact that the
evidence adduced before the grand
jury showed them to be the go-betweens
for the Groffs and Machen.
There are twelve count to the indict-
ment, eleven Of which are substantial
ly the same as those found previously
against Machen and the Groffs. The
count of the present indictment, which
relates to the conspiracy charge, sets
forth that on June 29th, 1900 in the Dis
trict of Columbia, Lorenz, Mrs. Lorenz,
Machen, and the Croft Brothers con
spired, combined, c~onfederated and
agreed to defraud the United States
on--orproopt Of tho nonnouS'' in tho fol-
lowing arrangement:
"Machen should advise and recon-
mend to the assistant postmaster the
purchase from the Croft Brothers of a
large number of Croft fasteners for mail
boxes at $1.25 each and should procure
| payment thereof, upon which the Croft
Brothers should receive 80 per cent. of
such payment or seventy-five cents for
each fastener and the Croft Brothers
should then pay to Mr.. and Mrs. Lor-
enz, either or both, the remaining forty
per cent. which was to be converted,
appropriated and applied to the use
found Of Mr.. and Mrs. Lorenz and
Machen. The Indictment says that this
agreement was carried out by Machen
on June Goth, recommending the pur-
chase of six thousand of the fasteners
at the price mentioned; that the Croft
Brothers on the same date presented a
bill for these six thousand fasteners
at the price mentioned: that on Septem-
Der 18th of the same year Machen rec
commended to the first assistant post
master general the payment of that
bill; and that the Croft Brothers, "hav-
ing thereafter and on September % of
that year, received from the United
States $500, in payment of he bill"
Diller Croft on October Goth, the same
| year, paid $4,000 to George E, and
Martha j. Lorenz.
The testimony upon which the in
dictment was found was given by Post
office Inspectors Walter S. Mayer, Paul
E. Williams, and Joseph F. Farrell, and
Theodore w. Warner and William r.
Lewis, the two latter being bank men.
The Croft Brothers and their counsel
for Machen were in court when the in
| dictrnent was returned. Machen was
not present. 1t was announced that
| neither Machen nor the Groffs would be
] rearrested; also that they would not be
! required to give a new bond.
Assistant District Attorney Taggart
announced that the investigation into
| postal affairs by the grand jury will
| continue but the indictments presented
today completes the work of mis- Office
so far as the grand jury has acted.