Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-06-06
MORE ARRESTS MADE
Two Subordinates In the Sup
plies Department Charged
With Dishonest Work
WERE PAID LARGE BONUSES
Leather Pouches Worth Less Than so
Cents Purchased at 80 Cents, 20 cents
Going to Machen and the Two Men
Arrested-other Arrests May Follow
The General News.

Washington, June 1.-TWO arrests
were made Friday in Washington's
postotfice scandal, besides the in
dictment of A. w. Machen, dismissed
superintendent of the free delivery de-
partment.
Thomas w. McGregory. clerk in
charge of the supplies for the rural free
delivery service and C. Ellsworth Up
ton of Baltimore, one of McGregors as
conspiracy with Charles z. Smith, of
Baltimore, to defraud the government
liz the purchase of leather pouches
furnished rural carriers thruout the
country. Their cases make seven ar
rests in all since the investigation be-
gan. Other arrests are expected later.
The story of the arrests is best told
IN the following official statement. given
GU. by Fourth Assistant Postmaster
General Bristow:
Thomas w. McGregor and c. ELS
worth Upton were arrested upon war
rants sworn out in Baltimore by In
spectors j.. D. Sullivan and d. r. Sim
mons, charged with conspiracy with
Charles e. Smith and others to defraud
the United States government in the
purchase of pouches from c. E. Smith,
of Baltimore. The complaints set forth
that McGregor and Upton agreed with
Smith to obtain for him orders for
many thousands of leather pouches,
such as are used by rural letters car
rierS.
The price agreed upon was 90 cents
per pouch: the actual value was less
than 80 cents. Smith was to pay them
the difference between 80 and 90 cents
per pouch. 1t is stated at the depart
ment that tie actual number of pouch
es which were purchased exceed 90
600, for which the government paid 80
cents each. or $4,000 in all. Smith re-
ceived and retained of this for his own
use $4,000. The remaining $4,000 was
paid to McGregor and Upton. The gov
eminent could have bought the entire
number of pouches from manufacturers
for $4,000.
McGregor was the clerk in charge of
rural free delivery supplies, and Upton
was one of his assistants.
Inspector Sullivan is from the st.
Louis division, and Simmons from the
Kansas City division of postoffice in
spectors. McGregor has been in the
postal service since 1891. He came here
from Nebraska as a messenger and
subsequently was promoted to a clerk
ship. and finally was appointed by Mr..
Machen in charge of tn. supply work
Of the rural free delivery service. Mr..
Upton is a Baltimore man, and has been
In the postal service for thirteen years.
Both of the men arrested are married.
They We're taken into custody at the
pcstoffice department shortly before
the close of office hours. Upton asked
To be taken before commissioner in
Baltimore instead of in this city, be-
cause OF his wider acquaintance there
and better opportunity for securing
bail Accordingly, he was taken to that
city. McGregor was taken to the office
of United States Commissioner Taylor,
where he waived preliminary hearing
and was released on a $4,000 bond.
United States District Attorney John
C. Rose, of Baltimore. arrived here lata
last evening and was In close consulta-
lon In an advisory way with Fourth
Assistant Postmaster Bristow for a
considerable time over the arrests Nc
Gregor has been under the surveillance
of inspectors for weeks, and has been
subjected to a close examination for
several hours day during part of
that time. The Inspectors say that they
completed the evidence they wanted be-
fore taking action.
Postal officials, after the arrests,
would not say whether their investiga :
tons in any wise implicated Mr.. Ma
chen, who was general superintendent
OF the system while the alleged trans
actions occurred Mr.. Bristow, when
asked a question on this point declined
to answer. He also declined to say
what action was likely TO be taken in
the case of G. f. Smith. the Baltimore
contractor who is named in connection
with the case.
"Mr. Smith has not been arrested"
Mr.. Bristow said in reply to all in
Guiries "and l can not say anything as
10 whether he will or VIII not be taken
into custody" Mr.. Bristow said, how
ever that the two arrests close the case
for the present.