Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-09
MACHEN TEsTIFIEs.
Fifth Week of the Post Office Con-
spiracy Case.


The fifth week of the Machen- Gron- Lorenz
trial was begun this morning by the defense
recalling George E. Lorenz to the witness
stand for the purpose of showing that the
oil properties in Ohio, in which Machen,
Lorenz and others were formerly interested,
had been sold by Lorenz for SAG, 500. OF this
amount the purchaser took up a mechanics
lien against the property for $12, 500 and
paid the remaining $34 900 with $40 shares
Of stock Of a parafine company.
Machen on Stand.
There was a stir of interest and cram
ing of necks when August w. Machen
mounted the stand He was born Novem-
Der 10. 1861, in Toledo Ohio, he said, but Is
now a resident of this city. He entered the
Toledo post office in November, 1886, as SUI
perintendent of the registry division, and
later was appointed assistant postmaster,
under George e. LorenZ as postmaster.
In 1888 he formed a copartnership with
George E. LOrenZ, Charles w. Lorenz. Hen
ry L. Lorenz and Ferdinand w. Machen,
for the purpose of engaging in the oil BUSH
ness. The company purchased the Bruno
farm for the sum of $4,000 and sunk
well. Each member contributed 50 coo, but
Ferdinand w. Machen only contributed
$500 the witness carrying the remaining
81 500 for him. dividend of CO per cent
was paid. January L. 1859, the copartners
incorporated as the Pluto Oil Company
OIL was produced so rapidly that the pipe
line company couldn't Handle 1t. Other
farms We're purchased, a tank built, tank
cars procured and other expenses incurred
until the investment represented an outlay
of $4,000. The Pluto company built a re-
finery, which was completed in the fall of
1890. The Crystal Refining Company was
then organized by the copartners mentioned
Certain of the assets of the Pluto company
were transferred to the Crystal company.
,,ft To- ton
aggregated $212, s34.3S. The witness was the
president of the Crystal Refining Company
A statement showing, in detail the assets
Of the Crystal company was read in evil
dence.
The Company Swamped.
According to Mr.. Machen, when the
company started to operate the refinery,
the price of oil was low. The price con-
tinued to drop and the company lost heav-
lily. a In the summer of 1892 the company's
bank and other liabilities aggregated $685.
600 The panic of 1893 swanped the com
pany. Prior to 1893. however. the witness
took over the stock his uncle, Ferdinand
w. Machen, held.
Mr.. Lorenz sold certain property he own
ed, located on Jefferson street. Toledo, and
devoted the proceeds to paying the most
pressing claims against the company. Jan
uary Z, 1893, Mr.. Machen testified he had
his first talk with George E. Lorenz rela-
tive to turning over to Iorenz all interests
the witness had in both the Crystal and
Pluto companies. The witness desired to
get rid Of his interests IL the Soil companies
because he had assurance that he would
be appointed to a positions IN the Post Of
flee Department here After receiving the
appointment he returned to Toledo to set
tie up his affairs there.4 He came back to
this city May "a, and went to work at
the department May 20. 1893.
The Lorenz Note.
Mr. Machen said he later received by mail
a promissory note in his favor for $25, 900,
executed by George e. Lorenz, and that
he thereupon formally assigned his interest
in the company to George e. Lorenz. The
witness explained the manner by which he
and Lorenz reached conclusion regarding
what was a fair valuation of witness in
terests.
The credits, summing up to more than
$4,000, on the back of the note for $25, 600.
Mr.. Machen declared, were entered by him
from time to time as he received remit
tances from LorenZ. Sometimes, when he
needed money, the witness added. he would
draw on Lorenz. AS a rule the witness and
Lorenz would balance their accounts at
the end of each year.
The note was settled December 10 last