The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-02-05
LORENZ EXPLAINS
NACHEN INTEREST
IN BANK ACCOUNT
Why Superintendent Al
ways Got 80 Per Cent.
EVEN TO THE ODD CENTS
Payments on Note of $4,000, and
Toledo Man Sent Half of Each
Grof Check.

Cross-examination of George e. Lorenz
occupied the entire session this morn
ing Mt the trial OF A. W. Machen. George
E. and Mrs. Lorenz. and DiIler B. and
Samuel A. Gron, on the charge of con-
spiracy.
Fifty thousand dollars for doing moth
Ing, and that paid on a verbal con-
tract, was the principal feature brought
out with prominence this morning
Lorenz admitted that in the seven years
In which he received money from the
Grofs he had done absolutely nothing
TO earn it.
He said he stood ready at any time
TO go out ard work up enthusiasm
among the postmasters for the fasten-
ers, but was not called upon to perform
any service. as the department was or
dering them as fast as the appropria-
tons would admit
Grohs Seemed Satisfied.
Lorenz said the Groffs seemed salts
fed to pay MIN the money. and he wac
certainly satisfied TO receive it, which
caused a laugh. After he saw Machen
on the Lake Huron trip in 1885, ne did
nothing whatever to promote the sales
Of the fasteners, but continued to draw
half the profits. Although the contract
was verbal, and only $50 OF the $500
which ne was to give. In addition TO his
services, had been paid. the witness
said he did not know that the GrofSs
could have broken with him at any
/ time
The witness positively denied several
times that he had seen Machen on the
trip TO Washington. when he saw the
( Groffs and entered into partnership
with them He also denied that when
he was on the Lake Huron trip with
Machen ne approached that official with
a proposition TO advance the sale of
fasteners. Although the witness was
an old postmaster. ne said he did not
know that Machen was responsible for
| the purchase OF supplies for free de-
| livery. but thought the only way TO
get the device on the market was to
get postmasters to ask for them While
he was postmaster at Toledo he had
asked for and obtained several new
! devices which other postmasters had
been granted.
Strict so Per Cent Basis.
Lorenz identified the checks which he
had sent to Machen. and denied thar
they were forwarded as the result OF
bargain between them. He explained to
Mr. Purdy. who questioned him.
that when he began to receive large
sums from the Groffs he determined to
send halr of each remittance to Machen
as payment on the note for S25. 900. which
Machen obtained when the witness
/ bought out his interest in the oil busi-
/ ness. Mr.. Purdy showed that. in a num-
/ Der of cases. small checks. drawn sever
al days apart. and forwarded to Ma
/ chen. aggregated exactly one-half the
sum which Lorenz had received from the
/ GrOffs a few days before Some of the
| checks were for amounts containing
/ odd cents. showing how closely the
money had been split on a 50 per cent
basis.
! The prosecution intimated this morn
/ ing that IL might attack the note for
/ So, 600 which Lorenz asserts he was nav
| ing when he sent money TO Machen. The
matter was brought UP in the argument
/ over an objection to a question. Mr..
! Purdy said the Government wanted to
/ show that Lorenz would never have
/ bought out Machen and have given him
$4,000 in that panicky year when money
was so hard TO obtain and ordinarily
valuable securities were practically
worthless.
ExonerateS Mrs. LorenZ.
Lorenz asserted that his wife had no
knowledge of his dealings with the
Groffs or Machen, and when she signed
/ checks for money to be paid Machen
she did IT at his request and for his
| convenience in handling the various
bank accounts. He deposited large sums
TO her credit as a business measure and
she checked against II whenever he ask
ed her TO do 80.
The interest In the trial continues un-
abated, and the seats for spectators
were filled this morning. Several
women were I'm the audience and fol-
lowed the case with close attention, but
what special interest they had In the
proceedings was not known.
A Cool Witness.
| Iorenz made a clear. cool witness He
| spoke in a clear and rather deep voice,
! uttering each word distinctly and ex-
plo ring. according to his Views. each
proposition laid before him by the pros
ecution. Machen gave strict heed to
each answer OF his ex-partner and
! maintained the air of alertness and
confidence which has marked him all
through the trial.
Justice Pritchard said this morning
that he expected to hold court tomor-
row. and Machen will probably go on
the stand at that session.