The Montgomery advertiser., 1903-08-01
NEW CHARGES MADE.
More True Bills Brought in by the
 Federal Grand Jury.

Washington, July s1.-The postoffice in- vestigation developed more excitement today the Federal grand jury returning seven indictments, involving nine persons for alleged conspiracy and bribery, in connection with postal affairs
 August w. Machen, for many years the head of the free delivery service. was named jointly with others In four of the indictments. The other men were Gordon Crawford, who was deputy auditor for the Postofice Department from June 12, | 1898, to September Is, 1887, and is a mem Der of one of the exclusive clubs of Washington; Leopold J. Stern of Balti- more. George E. Lorenz of Toledo, for merly a prominent Government official, and Martha J. Lorenz, his wife; John T. Cupper. Mayor of Lockhaven. Penn; Will liam C.. Long, an Ohio man who is an intimate friend of Machen; Maurice Run lsel of New York City, and Thomas Mo- Gregor, a protege of Machen. who was a messenger at the beginning of Machen's administration of the free delivery ser- vice, and in recent years has been in charge of the supplies for the pural free delivery service.
 Bonds Are Made. Crawford voluntarily appeared In court soon after the indictments were returned and furnished $10.0O0 bail and McGregor likewise gave $5.OOO bail. Long was ar I05ISu dI HIS nome, where DeDuly Mar shal Springman found him in bed. He was released on $10,O0O bonds, His was the only case in which a bench warrant was issued owing to the voluntary sur render of the others indicted Machen was not re-arrested under the indi ctment, as he gave bonds in $20 600 under his in- dictment several weeks ago and the au- thorities felt this was sufficient to ensure his appearance.
 Warrants have been issued for the out of town parties indicted and their arrest is expected within the next twenty four hours. The grand jury has not completed the work laid before 1t by the postal in- vestigators, and other indictments may be expected later on, possibly within week or two. It Is understood that two addi- tional cases against one of the parties in dicted today, a former prominent bureau official. are being inquired into by the grand jury and that the acts of another former high official of the Postofi1ce De- partment already under indictment by the Brooklyn grand jury, are being in- vestigated.
 The Machen True Bills.
 Attorney Douglas, of Machens counsel. in speaking of today's indictments of Machen, said that they involved the same general charges as the former indictment, although different alleged transfers and that the new indictments were designed Slmply to InG ones. lie said that nothing had yet been decided as to Machen's course under the new indict- ments. Machen was in consultation with his counsel this afternoon and the de- murrer to the previous indictments prob ably will be filed tomorrow. Walter s. May. a veteran postoffice inspector. and for many years previously a special pen sion examiner. has done a large part of the work on today's cases. aided by other inspectors, Postmaster General Payne re- turned to this city tonight over the Penn sylvania Railroad from Ills trip of about a fortnight on the revenue cutter Onon- daga, which was making its cruise along the Atlantic coast.
 The Postofice Department has made the following statement:
 Tn 1892 the Department. through the free delivery division entered into con- tract with the Post Device and Lock Company for the purpose of carriers satchels for a period of four years. The manager of this company. with whom all negotiations were conducted. was w. G. Crawford of Washington. D. C. The satchels were to be made of a coated can vass called pegamoid instead of leather, as formerly. The specifications required the contractor to furnish straps. George l.. Lorenz of Toledo. made contract with MT. Crawford. to aid him in secur- ing the contract and to furnish the straps for a specific amount per satchel,
 Whacked Up With Machen.
 Pursuant to this agreement which was a clandestlne agreement and not 8 mat ter of record in the Department. every tune the Postal Device and Lock Com pany was paid for a supply of satchels, remittance was made by that company to George E. Lorenz of Toledo, O., for his part in the compensation. MT. LorenZ. however. did not furnish the straps. They were furnished by the Department through Machen and paid for by the De- partment. Crawford, therefore paid Lo- renz for the straps which the Department furnished, but Lorenz, to show his ap- preciation of Machen's liberality. divided his profits with Machen. When Crawford remitted to LorenZ. Lorenz at once remit ted to Machen.
 ''Maehen. Crawford. George F.. LoPenz and Mrs. George E. Lorenz. in whose name the money was deposited. have been indicted for conspiracy to defraud the government.
 Crawford was Deputy Auditor for the Postofiice Department from January F, 1893 to September IS, 1897.
 Tn 1901 Machen enterad into an agree ment with Maurice Runkle of New York to furnish a small leather case for the free delivery service for which the depart ment paid 90 cents each. This contract was entered into without competition and the cases cost Runkle about 30 cents each. The inspectors have conclusive evidence AN-- -Trn. Ill -A GA