The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-01
And II Alleged to Have Resold Ar
ticIes for which the Government
Had Paid Contractors.
WORKED NUMEROUS SCHEMES
FORCED MANUFACTURERS TO d.
VIDE PROFITS WITH HIM,
And Dealt Doubly with the Govern
ment at Every Opportunity, IL
the Charges Be True.
Special to the indianapolis Journal.

opecidl 10 the indianapolis Journal
WARRINGTON, July 31.-Seven new
bills were presented by the federal grand
jury here to-day. accusing eight men and
one woman of conspiring to defraud the
Postofice Department or its acting agents
In Office by bribes to government officials.
Machen occupies the most notorious posi-
tion in these new indictments. four of them
naming him the principal in the new
conspiracy disclosed. Mr.. and Mrs. Lo-
renz. who figured in a previous indictment.
in which Machen was named. are again in
volved. So also is McGregor. the' former
rural free delivery clerk. who, with
Machen, was indicted several weeks ago
on charge of bribery. The complete list
OF those indicted to-day follows:
William c. Long. of Washington. D. c.;
Leopold ]. Stern, of Baltimore and August
w. Machen, for conspiracy to defraud the
government.
August W Mschen. Thomas W. Nc
Gregor. formerly clerk in the rural free
delivery division. and Maurice Runkle, of
New York City, for conspiracy.
August W. Machen. William G. Craw-
ford. George Z. Lorenz and Martha Lo-
REM, also for conspiring to defraud the
government.
August w. Machen. John T. Cupper and
for conspiring to defraud the government.
William c. long. Of Washington. ID. c.,
for bribery.
John T. Cupper, for bribery.
William G.. Crawford for presenting a
false claim to the government
The prominence OF some people involved
in this latest development in the postal
scandal adds interest to it. John T. Cupper
is mayor of Lockhaven, Pa; William G..
Crawford is a member Of the Metropolitan
Club. the most exclusive social organiza-
tion IN Washington.
The opinion had prevailed that this batch
of indictments, so long anticipated might
be the end of this phase of the postoffice
investigation, but prominent officials of
the department intimate that other indict-
ments may yet be found Whether Beavers
or other prominent officials will figure in
future indictments, however. is conjecture.
A FIELD DAY IN THE SCANDAL.
This was a field day in the postal scandal.
The developments add another chapter in
the record OF the "grafters' . syndicate.
Every trail followed in the supply division
of the free delivery service has opened up
new avenues OF wholesale corruption and
double dealing on the part Of Machen and
his associates. From the patent fasteners
which hold the mail box TO the post to the
paint on the boxes, and in every detail of
supplies and equipment thus far scrutinized.
graft leads up to Machen and few who
were closely associated with him.
The most remarkable case of bribery thus
far developed is that shown in the indict-
ment on which Crawford, Stern and Machen
figure This has to do with contracts for
supplying the department with carriers
eatchels and straps. Conclusive evidence is
in the possession of the department that
since 1898 the government has virtually paid
twice for the straps. the amount each year
running up into thousands of dollars. The
scheme Machen Is credited with devising is
clever and involved one. The significant
feature Of 1t all is how Machen was able
for years to work this duplicity upon the
department without being detected by his
immediate superior officers.
The plan, as worked, was this: Machen
had charge of the letting of contracts for
supplying the satchels and straps. The
strap Is a patented device controlled by
George b. Lamb 1t could be obtained from
no other source. Machen made contracts
first with Stern and later with Crawford
10 supply both satchels and straps. He
would then purchase the straps from Lamb.
1t is charged. and. having previously made
an agreement with Stern or Crawford. as
the case may have been. would, for a .rake-
off," furnish them with the straps through
the agency of Lorenz. The department
therefore. paid Lamb for the straps in the
first place. and again to Stern. who first
held the contract, and later to Crawford.
who In turn divided this part of the profit
with Machen. Not being satisfied with
drawing this dishonest income from one end
of the contract. Machen. II is alleged, also
obtained rebate from Lamb. using Long
es the Intermediary. Ii will thus be seen
that Machen purchased the straps. and. in
stead Of putting them TO use. resold them
through the agency OF go-between.
A SUBTLE SCHEME.
No more subtle scheme of duplicity has
ever been disclosed In any investigation of
any department In the government service.
One Of the other sources of profit to Machen
and the ring. as disclosed to-day. was
found I'm the contract with Maurice Runkle.
With whom. I'm 1901. Mschen made a contract
for leather cases costing 30 cents each.
This contract. II Is discovered. was let
without competition. The market cost OF