The county record. [volume] (Kingstree, S.C.) 1885-1975, 1903-06-11
MORE POsTOFFICE THIEVERY
Arrests Follow Unearthing of Whole.
sale Rascality.

Sal RaScaiity.
Washington, Special.-As a result
Of the sweeping investigation Of at
fairs at the Postofice Department,
Thomas w. McGregor. a clerk in
charge of the supplies fcr 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 E. Smith. of Baltimore,
to defraud the government in the pur-
chase Of the leather pouches furnish
ed 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.
eral Bristow.
Thomas McGregor and c. Els
worth Upton were arrested this after
loon upon warrants sworn out in Bal
timore by Inspectors J. D. Sullivan
and R. D. Simmons, charged with a
conspiracy with Charles E. Smith and
others, to defraud the United States
government in the purchase OF
pouches from C. E. Smith, Of Balti-
more. The complaint sets 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 letter car
rie,s. The price agreed upon was 80
cents per pouch. The actual value vas
less than so cents. Smith was to pay
to them the difference between 80 and
so cents per pouch. 1t Is stated at the
department that the actual number OF
pouches which were purchased ex-
ceeded q 1000, for which the govern
ment paid 80 cents each, or $4,000 IL
all. Smith received and retained OF
this for his own use $4,000. The re-
naming $4,000 was paid to McGregor
and Upton. The government could
have bought the entire number OF
pouches from the manufacturers for
$4,000"
McGregor has been in the postal
service since 1891. He came here from
Nebraska as Il messenger and subse-
quently was promoted to a clerkship
and finally was appointed by Mr..
Machen, in charge Of the supply work
of the rural free delivery service. Mr..
Upton is a Baltimorean and has been
in the postal service for Is years. Both
the men arrested are married. They
were taken into custody at the Post
office Department shortly before the
close Of office hours. Upton asked to
be taken before a commissioner at
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 by two p%ostofice inspectors
shortly before 6 o'clock this evening.
McGregor was taken to the office OF
United States Commissioner Taylor.
McGregor has been under the close
surveillance Of the inspectors for
weeks, and has been subjected to a
close examinatin for several hours a
day. The inspectors say that they COM
pleted the evidence they wanted be-
fore taking decisive action.
Postal officials after the arrests
would not say whether their investi-
cations In any wise implicated Mr..
Machen, who was general s%uperinten-
dent Of the system, while the alleged
transactions occurred. in the present
matter. Fourth Assistant Bristow,
when asked a question on this point,
declined to answer, saying that the
statement made public comprises all
the department cared to give out on
the subject at this time. Mr.. Bristow
also declined to say what action was
likely to be taken in the case OF G.. E..
Smith, the Baltimore contractor, who
is named in connection with the case.
Mr.. Bristow said, however, that the
two arrests close the case for the