Waterbury evening Democrat., 1903-09-12
ACCUSED ARE NAMED
District Attorney Beach Gives Names of Those Indicted.
OUTCOME OF POSTAL FRAUD PROBING

Detailed Story of the Alleged Meth
 Ods to Defraud the Government
 by Postal Employees Act
 ing as Contractors.
 WASHINGTON, Sept 12-The six persons named in the seven indict- ments returned by the grand jury in the postal frauds investigation as an nounced by District Attorney Beach are: George w. Beavers, former chief of the division of salaries and allow ances, post office department; August NS Machen, former general superin- tendent of the free delivery system, post office department; James w. Err win, former post office inspector with headquarters in San Francisco; George W. Huntington and Isaac S. Mcclellan, both of New York city, owners of the Columbia Supply coIhpany of that city, and Eugene D. Scheb1e of Toledo, O., dentist and interested in the firm of Maybury & Ellis of Detroit, Mich. let ter box manufa cturers.
 The following statement regarding the indictments follows:
 seThe indictment against Beavers, Machen and Erwin alleges in substance that the Postal Device and Improve ment company of San Francisco, for merly the Montague Indicator and Let ter Box company, by resolution of Oct 6, 1899, set aside 1000 shares of it's stock to be used in any legitimate way it's president might think proper in for Warding the interests of the company. Armed with this authority, the presi- dent, Daniel S. Richardson, accempa- nied by Erwin, came to Washington Erwin was then post office inspector and the company was composed al- most entirely of post office employees in the west.
 Erwin introduced Richardson to all the post office officials at Washington, and Beavers, Machen, Heath and oth- CTS examined the device. As result an order for equipping 2,089 letter boxes with the device was secured. About this time, on suggestion from 9Bea vers, concurred in by Machen, the name of the company was changed, and it was arranged that all post office officials should disappear from its man agement. Beavers and Machen became the owners of blocks of the stock, both under assumed names.
 ''The company was then systematical- ly relieved of its obligations in the way of paying freight cratfng. painting and I printing cards for the devices it was l furnishing. Out of the 1,o00 shares of stock set aside, as above mentioned, most all of 1t went to different post of flee officials. The president of the com pany afterwarcR came to Washington again, with the request that an in crease be made in the compensation the l company was receiving for it's device. This request was granted. Dividends were afterward paid on the stock.
 '4The indictment against McGiehan, 1 Huntington and Machen alleges that l McGiehan was the person interested in the profits from certain contracts from l the United States for furnishing pack age boxes from July 1, 1898, to June 1, 1898; that In pursuance of 3, scheme to l defraud the United States Machen rec commended to his superiors that the compensation of the contractor be in creased in payment for attaching a l different support to the boxes. which raised them higher from the ground . erward, when Huntington became in terested in the contracts with McGie- han, they continued to receive the ex- tra compensa ton.
 1 "The indictment against Mcclellan and Huntington for bribery alleges that Machen procured the payment of $1.25 on each of the package boxes ad dftional to the contractor for the de Twice which lifted them higher from the ground when the sum paid fol that attachment should not have ex ceeded 75 cents. McGiehan agreed tC pay Machen 50 cents from each SIPS with the concurrence of Huntington who was then interested in the con tracts with Mcclellan, as the Colum bia Supply company, for his own per sonaI use
 ''The indictment against Scheble anG ? Machen alleges that Eugene D. Scheble of Toledo, O., became interested will the firm of Maybury & Ellis of Detroit
 Mich, of which town Maybury is tn,
 mayor, in certain contracts with tht
 United States for furnishing lette
 boxes. That in pursuance of theI scheme to defraud the, governmen
 Machen induced the department to or der large quantities of letter boxes fo the rural free delivery service, quanti
 ties far in excess of what was needea or what could be used, and that Mach
 en in his official capacity approved tn bills for the same. Maybury x Elli ) paid Scheble to the extent of his inter : est in the company, and he in turn pail | large SilTnS fn Machsn' '' Snakes Let Loose I'm Ireland.