Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1903-06-06
FROM WASHINGTON.
Correspondence of the Alexandria Gazette. ]
Washington, ID, c., June 6.

month"; ago. The story of the postoffice
scandals, nearly all of which developed
during the Presidents absence, occupied
the larger portion of the time devoted to
the meeting. Postmaster General Payne
acquainted the President and his fellow
members not only with the results of the
investigation already achieved but also
with the various lines now being pursued.
1t is understood that he expressed the
utmost confidence in the ability of the
government to convict Machen and the
other former employees Of the Department
who are now under arrest, as well rs the
outsiders supposed to have been in col
fusion with them in swindling the gov
eminent.
From an authoritative source it
is learned that the Cabinet took no Of
fetal action concerning the Postoffice af-
fair or other matters discussed this morn
ing, among which was the attitude of
the United States toward Russia in con-
nection with the Kishenef massacre.
The President and Postmaster General
will have long conference over the
postofice situation this afternoon. They
are anxious to get to the bottom of the
scandal as quickly as possible. The
President does not consider that the dis
covery of crookednesS in public depart
ment is any reflection upon the depart
ment itself.
The intimatiOn comes from a high
official of the PostofIice Department to-
day that half dozen other arrests of
employees in the rural free delivery de-
partment may be expected to follow the
result Of the investigation of contracts
now being made by inspectors. 1t is be-
lieved that half million dollars have
been improperly taken from the govern
ment in the past few years by A. w.
Machen, until recently superintendent,
and those acting under his orders. For
years Congress has been appropriating
almost quarter of million dollars as
an emergency fund from which Machen
could draw whenever in his discretion
he deemedit proper. That discretion"
was exercised in the purchase of the
Croft letter box fastener. From the
same fund was drawn the payments in
the case of McGregor and Upton ar
rested last night. 1t is said that the
inspectors have so far progressed in their
labOrs as to disclose that for three years
past, at least, a "rake OFF, has been
secured by some one in every purchase
made in that division under the emer
gency fund. Ithas been frequently charg-
ed that Machen and other department
officials have been exploiting the advan-
tages of certain mining company, in
which they were interested, and that
subordinates were approached with a
view of investment Formal charges of
this nature were filed with Fourth Assist
ant Bristow today. Included therein
was a certified copy of the petition for
incorporation of the National Capital
Copper Mining Company, of which the
directors were as follows: August w.
Machen, of Ohio, superintendent of free
delivery, Postoffice Department; H. II.
Rand, of Wisconsin, confidential secre-
tary to Postmaster-G General Payne, and
chairman of the supply purchase com
mittee of the PostOffice Department; j.
D. King, of Wisconsin, chief of the
civil service division of the rural free
delivery, Postoffice Department; II. NJ.
Baker, ex Congressman; George +.
Latenz, a former postmaster at Toledo,
Ohio; Thacker Z. Lee, of the District
of Columbia; d. H. Fenton, of Indiana,
law clerk in the auditors division of the
Postoffice Department, and Samuel W.
Scott, of Texas. OF this company Ma
chen was present, Rand vice-president,
King secretary, and Baker treasurer.
The establishment ofthe new monetary
system in the Philippines, which was
expected to take place July 4, has been
postponed until the first of September
The reason alleged is the great difficult
ties encountered and foreseen in the
substitution of the new gold standard
pesos for the Mexican and other dollars
which now circulate in the Philippines.
The Spanish government has set up
claim to all the Spanish coins now in
circulation in the Philippines and which
are about to be retired. The Spain
ards claim them as their property I'M
der the terms of the treaty of peace
which permits them to remove to
Spain all portable property belong
ing to their government prior to the
American conquest. Judging, however,
that the United States would not agree
to so preposterous a proposition, Spain
offers in the same communication unless
her claims should be recognized, to
purchase the coins Eat a fair price"
The Spanish Government has been in
formed that the Philippine Government
is about to hold an auction for the sale
Of these copper coins and fears that they
will be purchased at low price and
shipped to Spain for circulation there.
The matter has been referred to the
Mint Bureau of the Treasury Depart
ment.
On the request of U. S. District At
torney Taggart, this morning, U. S.
Taylor relinquished fur
Their jurisdiction over the case of the
government against August w. Machen,
former Superintendent of free delivery |
Of the PostOfice Department, who was
indicted yesterday by the grand jury.
Taylor called the case at
1890 this morning, the hour set for the
preliminary hearing, whereupon he was
informed by Mr.. Taggart of the action
Of the grand jury and Was therefore re-
luested to discontinue further proceed
Ings. Mr.. Machen's trial will take place
nnrt foll Of the 0cfnhor tnrnn 81 thn |