The San Francisco call., 1903-09-12
LOUD EXoNERATED.


however.
LOUD EXoNERATED.
In connection with this company the
name Of eX-Representative Loud Of Cali
fornia has been mentioned in the past,
bun ii is said by officials in authority
that there is no testimony in the hands
Of the Grand Jury duplicating Loud in
any way. He is said TO have acted for
Richardson, as is common for a Repre-
sentative ia Congress to act for his con-
sutuents, and there is no evidence show
ing that he was a stockhOlder in the San
Francisco company.
Mcclellan Huntington and Machen
were indicted for conspiracy to defraud
the Government in connection with the
contract 10 furnish package boxes TO the
Government. Mcclellan is said TO have
obtained a contract to furnish boxes from
July J. 1893, TO June l. 1897. Machen is
said 10 have been instrumental in bring
ing about an increase in the price paid
10 Mcclellan, who took Huntington in as
a partner before the expiration of the
contract. The extra compensation is said
10 have been shared with Machen.
The official statement regarding the in
dictments follows;
The Indictment against Beavers. Machen
and Erwin alleges in substance that the
Postal Device and Improvement Company
of San Francisco formerly the Montague
Indicator and Letter Box Company by
resolution Of October 6. 1893, set aside 1000
shares OF its stock TO be used in any le-
giumate way its president might think
proper in forwarding the interests OF the
company. Armed with this authority the
president. Daniel S. Richardson, accom-
panied by Erwin, came TO Washington.
Erwin was then a pOstoffce inspector
and the company was composed almost
entirely Of pOstOffice employees in the
West. Erwin introduced Richardson to
all the postoffice officials at washington
and Beavers, Machen, Heath and others
examined the devices.
SECURE AN ORDER.
AS q result an order for equipping 20S9
letter boxes with the device was secured.
About that time. on a suggestion from
Beavers. cOncurred in by Machen. the
name Of the company was changed and it
was arranged that all postoffice officials
should disappear from its mana cement.
Beavers and Machen became the owners
Of blocks Of the stock both under as
sumed names. The company was then
Systematically relieved of its obligations
in the way Of paying freight, Grating and
printing cards for the devices it was fur
nishing
Out Of the 100 shares Of stock set aside
as above mentioned most al lof it went
10 different postoffice officials. The presi-
Washington again with the request that
an increase be made in the compensation
the company was receiving for its device
The request was granted. Dividends were
afterward paid on the stock.
The Indictment against Mcclellan
Huntington and Machen alleges that Nc
Giehan was the person interested in the
profits from certain contracts from the
United States for furnishing packages
from July I, 1888, TO June J. 1897; that in
pursuance Of a scheme TO defraud the
United States, Machen recommended to
his superiors that the compensation of
the contractor be increased. in payment
for attaching a different support to the
boxes. which raised them higher from the
ground. This scheme was put through
and afterward, when Huntington became
interested in the contracts with Nc
Giehan they continued to receive the
extra compensation.
PAYMENTS IN DETAIL.
The Indictment is in ten counts, the first
two counts charging the payment Of 800
10 Machen on September l. 1900; the third
and fourth counts alleging the payment
Of $3.50 on December 80, 1900; the fifth and
sixth counts the payment of $3.50 Febru-
airy 4, 1901; the seventh and eighth counts
the payment Of $3.50 March 2, 1901; the
ninth and tenth counts the payment Of
S225 on March l5. 1901.
AE DlAtL AlulCAultLL against MclTlehan.
Huntington and AIachen is in fifteen
counts. on the same facts as set forth in
the first indictment, these being conspir-
acy 10 bribe an officer Of the United
States
The indictment against Mcclellan and
Huntington for bribery alleges that Ma
chen procured the payment of 81 % on
each Of the package boxes additional to
the contract, or for which the device
which lifted them higher from the ground
when the sum paid for that attachment
should not have exceeded Is cents. Nc
Giehan agreed TO pay Machen 50 cents
from each 81 25 with the concurrence of
Huntington. who was then interested in
the contracts with Mcclellan as the CO.
lumbia Supply Company, for his own per-
sonal use.
SCHEMES TO DEFRAUD.
The indictment against Scheble and Ma
chen alleges that Eugene D. Schebel Of
Toledo became interested with the firm Of
Maybury & Ellis Of Detroit Of which
town Maybury is the Mayor, in securing
contracts with the United States for fur
nishing letter boxes; that in pursuance Of
their scheme to defraud the Government
Machen induced the department to order
large quantities Of letter boxes for the ru-
raj free delivery service: quantities in ex-
cess Of what was needed or used; and that
Machen, in his official capacity, approved
the bills for the same. Maybury & Ellis
paid Scheble to the extent of his interest
IN the company and he in turn paid large
sums 10 Machen-
The indictment is in seventeen counts,
the first three charging the payment by
scheble to Machen Of $500 on September
II, 1900; the fourth count charging the or
oering By Machen of 6O00 letter boxes on
september p, 1900: the fifth, sixth and
seventh counts charging the payment tn
Machen OF $50 on September 90 1900. The
eighth, ninth and tenth counts charge the
paymen5 10 Machen OF 5000 on November
=, 1900: the eleventh coUnt charges the
payment TO Machen Of Sl159 or November
%. 1900; the twelfth, thirteenth ana four-
teenth counts charge the payment ~
ssO4 TO Machen on February II, 1901: the
fifteenth, sixteenth and seventeenth
counts charge the payment of SI34 70
Machen on June 10. 1901 The other in
dictmcnts against the defendants hava
fnc Ga mo r1r1r,1a ~ s,cst,.f.