The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-19
Machen and Several Others
to be Indicted.
CHARGE AGAINST HEDGES
It is Alleged That He Pressed Claims Before
Congress Soliciting Postal Employees
to Take Stock in Mining
Company.
[Bx the Associated Press.l


Washington. D. c., June 18.-The Fed
eral grand jury, which is investigating
the postal affairs, will bring in indict-
ments in a few days against persons in
volved. 1t is learned by unquestioned au-
thority that the jury has voted to return
indictments against August w. Machen.
Diller B. Croft, Samuel A. Croft, George
E. Lorenz and Mrs. Lorenz, the two latter
being residents of Toledo, Ohio. The
specific charge, it is understood, will be
conspiracy to defraud the government.
The sensational feature of today's prob
able proceedings is the connection of Mrs.
Lorenz's name with the transactions
which led to the arrest of Machen and
the Groffs. At the time of the arrests
stories were in circulation that there
was a go-between. but the information at
hand then was not conclusive enough to
establish the identity of this particular
party. Whether or not Mrs. Lorenz acted
in this capacity is not known. but it has
been suggested that this go between was
woman.
The Postmaster General today designa-
ted Edward f. Kimban. the chief clerk of
the money order system, to act tempor-
arily as superintendent to succeed James
i. Metcalf, who was removed yesterday
on the charge of indiscretion in contract
matters.
Postmaster General Payne today re-
eeived a letter from Mr.. Metcalf asking
suspension of the order of dismissal
until his complete defense may be heard.
The letter says his summary dismissal
must be due to the heated excited and
congested condition of affairs in the Post
Office Department" and that he was con
sIiting only the best interests Of the
/ postoffice money order service I'm what
ever / did concerning the Herman bid
and not my own self-interest. and no
thought Of myself or my family, as is
made to appear in the charge against
me-"
! Charges against Chas F. Hedges, super
intendent of the City Delivery Postoffice
Department, alleging that he pressed
claims before Congress, soliciting en-
Ipioyes in the service to take stock in a
mining company and other allegations.
rare under investigation by the inspectors
| of the Postoffice Department. The
charges were presented TO Postmaster
General Payne and referred by him to
Fourth Assistant Postmaster General Bris-
| tow The allegation that Mr.. Hedges went
to the capitol during the last session OF
Congress and urged the passage of a
claim then pending was made at that
! time Mr.. Hedges was Immediately called
upon for a statement. which it is under
stood is now on file in the department.
Since then other charges have assumed
definite shape. Mr.. Hedges was an assist
ant to former General Superintendent
August W. Machen, of the Free Delivery
Service, now under indictment.
! The charge relating to the sale of stock
refers to a gold mining company, of
which Mr.. Hedges is stated to be presl-
dent. The charge is that stock of this
company was sold to postmasters while
Hedges was in charge of the entire city
branch of the free delivery system and
| that stock of the company was given TO
! private secretaries of Representatives III
Congress.
! The Postoffice Department has resumed
| the establishment of rural free delivery
| system routes, which were held UP on ac-
count of the deficit in the appropriation
| for that service, and large number of
routes will be put into operation on July
| 1. the beginning of the new fiscal year
| The policy of the department hereafter
will be to establish routes as rapidly as
| possible. consistent with the best inter
ests of the service, and economic admins
tration. The rules requiring 100 families
on the route, in order to secure the ser
vice. probably will be more strictly ad
hered to and fewer exceptions made.