Virginia gazette. [volume] (Williamsburg, Va.) 1893-192?, 1903-06-13
MORE POSTOFFIct IHItyERY
Arrests Follow Unearthing OF Whole
sale Raseality.

OF the sweeping Investigation OF ar
fairs at the Postomce Department
Thomas w. McGregor. clerk in
charge OF the supplies fcS the rural
free delivery service. and c. Ellsworth /
Upton. OF Baltimore. one OF Nc /
Gregor's assistants. Friday were ar
rested on the charge OF conspiracy |
with Charles +. Smith. OF Baltimore. /
90 defraud the government in the pur- |
chase OF the leather pouches furnish |
cd the rural carriers throughout the |
country. Their cases make seven ar /
rests in all since the Investigation be
gan. Other arrests are expected later
The story Of arrests Is best told in the
following Official statement given out
BY Fourth Assistant Postmaster Gen
Gral Bristow.
Thomas McGregor and c. ELS
worth Upton were arrested this after
noon upon warrants sworn out in Bal
/ umore by inspectors J. ID. Sullivan
and r. ID. Simmons. charged with a
/ conspiracy with Charles =. Smith and
/ others. TO dcflaud the United States
government in the purchase OF
| pouches from c. +. Smith. Of Balt
more. The complaint sets forth that
/ McCregor and Upton agreed with
smith to obtain for him orders for
/ many thousands OF leather pouches.
such as are used by rural letter car
ric,s. The price agreed upon was 80
cents per pouch The actual value was
less than so cents. Smith was 10 pay
20 them the difference between go and
80 cents PEI pouch. It is stated az the
department that the actual number OF
pouches which were purchased ex-
ceeded 10000. for which the govern
mont paid go cents each. or $4,000 IL
Ell. smith received and retained OF
this for his own use $4,000. The re-
naming $4,000 was paid to McGresor
ana Upton. The government could
have bought tho entire number Of
pouches from the manufacturers for
$4,000"
1oCrcgor has been in the postal
service since 1891 He came here from
Nebraska as "a messenger and subse-
Quenuy was promoted to clerkship
a1d finally was appointed by Mr
F 2-2chcn. in charge OF the supply work
T, or the rural free delivery service. Nr
p Upton Is a Balumoroan ana has been
in the postal service for l2 years. Both
the men arrested are married. They
2 were taken into custody at the Post
, Office Department shortly before tn,
close Of Office hours. Upton asked e,
g be taken before a commissioner al
Z Baltimore instead OF in this city. Doe
cause OF his wider acquaintance there
and better opportunity FOR securing
bail Accordingly ne was taken 20 tina
o city by two postofice Inspector
q shortly before C o'clock this evening
NcGregor was taken 10 the Office o
{ United States Commissioner Taylor
$ MeGrcgor has been under the clos
Is surveillance Of the inspectors 70
weeks. and has been subjected 10
n close examinatin for several hours
q day. The inspectors say that they con
d pletei the evidence they wanted b,
. fore taking decisive action.
% Postal officials after the arrest
s would not say whether their invest
Z. cations in amy wise implicated NJ
Do Machcn. who was general supcrintei
dent of the system. while the allege
transactions occurred. i'm the preser
D. matter Fourth Assistant Bristov
when asked a question on this poin
ls I declined 20 answer. saying that I'll
q statement made public comprises q
- the department cared 10 give out q
the subject 81 this time. Mr. Brlsto
also declined 90 say what action ws
- likely 20 Zee taken ia the case OF G.
va SAITH the Baltimore contractor wl
Isl named in connection with the cas-
a- Air. Bristow said. however. that ID
S. two arrests close the case for Il
present.