The Montgomery advertiser., 1903-09-12
How Machen and. Others
 Worked.
LIST OF THOSE INDICTED
Former Post Office Inspector
 -. Among Number.
Beavers Gives Bond Before New York Commissioner and will Demand That the Government Pro-
 duce the Evidence.

Washington, Sept u.-United States Att torney Beach today announced that the seven persons named in the seven indict- merts returned by the grand jury last Tuesday were:
 George W. Beavers, former Chief of the Division of Salaries and Allowances, Postoffice.
 August W. Machen, former General su- perintendent of the Free Delivery Sys- tenn, Postoffice Department. James w. Erwin. former Postofice 1n- spector with headquarters in San Fran cisco.
 George H. Huntington and Isaac S. McGiehan, both of New York city, own CTS of the Columbia Supply Company of that city.
 Eugene D. scheble of Toledo. O., a den. tist and interested in the firm of May berry & Ellis of Detroit, Mich, letter box manufacturers.
 The Crimes Alleged. Beavers, Machen and Erwin are named jointly in one indictment for conspiracy | to defraud the United States. Another in- dictment is against McGiehan, Hunting | ton and Machen for conspiracy to defraud the United States, and still another Is
 
 commit bribery, both under Section $40. R. s. Scheble and McGiehan are indicted | jointly for conspiracy against the United | States and again for conspiracy to com init bribery. Another indictment Is against Machen singiy for accepting | bribery under Section 5501 Revised Stat utes.
 | All the indictments are based on trans | actions relating to. the supply of letter | boxes and package boxes and devices. Some sensational charges are made. The ! indictment against Beavers, Machen and Erwin alleges that the Postal Device and | Improvement Company of San Francisco l formerly the Montague Indicator and Let 1 ter Box Con parv, was composed almost entirely of postal employees; that 1 In isss 1t sets 1sssse one flspsfsand shares of stock for forwarding it's interests. and | that armed with this authority its Presi- den, Daniel s. Richardson, and Inpsector Erwin came to Washington. saw Beavers, Machen, Heath and others and got an or 1 der for equipping 20S4 letter boxes with their devices.
 Assumed Other Names. 1 The indictment says the company was systematically relieved of its obligations in the way of paying freight. crating. painting and printing cards for the de- vices it was furnishing. The indictment charges that Beavers and Machen owned stock under assumed names. Most of the | thousand shares of stock set aside. the in- dictment says, went to different postof- | flee officials and again President Richard son came to Washington and following an increase in the contract price he got for the company dividends were paid on the stock. McGiehan, principal owner of the Columbia Supply Company of New York | lu ohar tA Hao oh.r | 50 cents for each dollar and a quarter paid on the package box contract by the Government. Specific payments to Ma l chen are cited in consideration of in- l creased compensation and under the pack | age box contract, ostensibly for attaching a different support to the boxes. Scheble became interested in the firm of which | Mayor Maybury of Detroit. Mich, is a member and which furnished letter boxes to the Government. and Schebel and Ma chen in a joint indictment are alleged to have schemed to defraud the Government by the supply of excessive quantities of booxes. The indictment says that May bury and Ellis paid Schebel to the extent of the latters interest in the company, and that in turn paid large sums to Ma chen. In seenteen counts the indict- ment cities specific payments to Macheu by Schebel. The other indictments in- volve practically similar transactions. Montague, whose name figures in the Montague indicator letter box company. | is postmaster of San Francisco.
 A number of postal cases are now pend ing before the grand jury which will re- sume it's sessions here netx Monday.
 In addition to the facts stated the off, cial statement says:
 The Various Counts.
 "The indictment against McGiehan | Huntington and Machen. alleges that Mo Giehan was the person interested in the profits from certain contracts from the United States for furnishing package boxes from July 1. 1893, to June 1, 1897 That in pursuance of a scheme to defraud the United States, Machen recommended tn his superiors that the compensation oi the contractor be increased, in payment for attaching a different support to the boxes. This statement was put through and afterward, when Huntington became interested in the contracts with McGie- han, they continued to receive the extra compensation. The indictment Is in ten counts. the first four counts charging the payment of 500 to Machen on September Il, 1900; the third and fourth counts all | leging the payment of $250 on December 80, 1900; the fifth and sixth counts, the payment of $25O February 4, 1901; the sev- enth and eighth counts the payment of $350 March g. 1901; the ninth and tenth counts the payment of $23 on March ; 1901.
 "The other indictment against McGie- han. Huntington and Machen is In fif- teen counts, on the same facts as set forth in the first indictment these being conspiracy to bribe an officer of the Uni ted States.
 The indictments against McGiehan and Huntington for bribery, alleges that Machen procured the payment of $l.35 or each of the package boxes. additional to the contract, for the device which lifted them higher from the ground, when the sum paid for that attachment should not have exceeded 75 cents.
 Agreed to Pay Machen.
 "McGiehan agreed to pay Machen 5t cents from each $125. with the concur. renee of Huntington, who was then in terested in the contracts with Mcclellan as the Columbia Supply Company, for hi: own personal use.
 The indictment against Scheble anC 1 Machen alleges that Eugene D. Schebl' of Toledo, O., became interested with thu