The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-09-27
ERWIN'S CASE
IS CONTINUED
Allows That Device Company
Paid His Expenses.
MACHEN AND BEAVERS TOO
Knew That They Had Large
Blocks of Stock.
MACHEN AND BEAVERS TOO

San Francisco, Cal, Sept. 2e.-The hear
ing of Postal Inspector James W. Erwin,
indicted for conspiring with Beavers and
Machen to defraud the government was
continued today gefore United States
commissioned Heacock.
When the case was called United States
Attorney Worth. in ,he eros examina-
ton went oyer much of the trip made by
Erwin and Superintendent Richardson to
Washington. at this time Erwin admit
ted that all his expenses were paid by
the postal device and Improvement com
pany butd enied that he had secured any
return whatever for his services.
The inspector said that he spent several
days in Washington introducing Richard
son TO Macnen and Beavers with the
postal device in view. He admitted that
he thoroughly indorsed the invention and
supposed that he had told Machen so.
Machen sal he was favorabiy impressed
by the invention and would order i.
installed in the free delivery system.
When asked if he knew that Machen
would be instrumental III securing the
contract for the company, Erwin stated
he did not understand the government
procedure in matters Of this kind. Later,
however, he said that the contract for
4.OC0 devices came about several weeks
after he left Washington and that the
order was signed by George NJ. Allen.
acting assistant postmaster general.
Have you been told tht Mr. Machen
and Mr.. Beaver held such an interest in
the company" Erwin was asked.
He replied: u was tod by Richardson
several months ag that one thousand
shares OF stock in the postal device and
Improvement company had been issued
to a man named Harry Sieger but that
il was intended for A. w. Machen and
that 2,060 shares had been issued in the
name of NcDonough but intended for
George w. Beavers. l was not aware OF
the fact until told by him although l
suspected several years ago that they
were both interested in the company"
The district attorney asked if Erwin
knew of any other officials in any other
way being subsidized. An objection to
this question was sustained. The wit
nescs said that he did not know thata ac-
cepdng shares in company was a vio-
lation of law.
Postal Inspector Robert Mundo testi-
fed that he knew of the counts in the
indictment only at secondha nd.
r. II. Espy, secretary of the postal
device and Improvement company testi-
fed that Erwin was not and never had
been a director or officer of either CONF
pany.
According to Espy 100 boxes had been
sold to this government for $500, S425 and
$3.50 a piece, while the company has
sold 1000 to the new leland government
for $500
What is the cost at the factory of the
device?"
Two dollars and seventy-flve cents
Adding expenses the cost is 1898. Mr..
as president got SO a month.
As secretary I was paid $50 a month
He said that Richardson did hold l1,0c0
shares of stock but that he now holds
only 7,O00,, as he had sold the balance.
Richardson's profits in dividends he
said had been 1899, while he had derived
s.. 800 in salary.
The district attorney objected to the
of evidence about Richard
son but the commissioner admitted it.
The case went over until Monday.