The Washington times., 1904-02-04
l&ENZ TELLS STORY
OF BIG VENTURE IN OIL

OF BIG VENTURE IN OIL
| Cross-examination of S. D. Carr, pres
ident of the National Bank of Commerce
OF Toledo. was resumed this morning by
Assistant Attorney General Purdy in the
| Postoffice conspiracy case.
Mr.. Purdy asked about the settlement
which the Plato Oil Company and the
] Crystal Refining Company had with his
bank for $4,000. He said the deal took
place in September, 1894 In addition TO
this. Lorenz owed the bank other large
sums. amounting to some $23. CO., which
had been settled by the deposit OF stock
in other companies.
/ Mr.. Purdy-Did the bank ever realize
/ on the stock?
Mr.. Douglass object Is Mr.. Purdy
attorney for the bank, as well as Sam
uel Grofr2
/ Mr.. Purdy-I want to show just what
Is the financial condition of the com
panies. into which the defense has gone
so fully.
/ Justice Pritehard sustained the objec-
/ ton.
{ Machen Claims Released.
/ In the fan OF 1894. said the witness.
all claims against Lorenz growing out
| Of the oil transactions had been re-
leased. In the spring of 1893. claims
against Machen for $1,000 were released
on the personal Endorsement of Lorenz.
The claim was discharged in fun in two
/ or three years after Machen came to
! Washington. Witness had no personal
knowledge Of the dealings between
I Machen and Lorenz
Mr.. Purdy-That's ala MT Carr: but I
want you TO remain. / may need you
in rebuttal.
Lorenz Takes Stand.
George E Lorenz then took the stand.
The examination was conducted BY Mr.
Kumler. LOrenz was postmaster at To-
ledo from 1856 TO 1890
Witness told how he came to Wash
ington in July. 1895. on business, and
called at Machen's Office TO get his mail
He knew Mr.. Marche. Machen's assist
ant. very well He met Mr.. Marche
outside the postofHce. and Marche drew
his attention to the cevice on the trial
box near the department building.
Ihey went 10 the city pOstoffice and
Mr. Willett accompanied them to the
room where the working model was on
sation, s A. Groff entered the room. and
was introduced
Witness called Groff aside and asked
what was peing done in the way OF in
d
/ had been Installed in Washington
witness asked how he could get an in
terest in the business and was referred
10 Diller 3. Gron. whom they saw the
/ next day.
Promised Half Profits.
( Diller Groff and the witness discussed
the matter and after some wran9lino
! Grof agreed to let Lorenz have one-haIf
the profits II S. A. Groff agreed. He did
agree The arrangement was that Io-
renz should pay 500 and receive half
the profits in the business.
Witness was to go out into other
cities. explain the device. and. because
or its usefulness. persuade postrnasters
20 ask Tor the fasteners. There was no
written contract then. but IL was uu-
derstood there should be one Witness
subsequently sent one to the Grofrs hIIt
I II was not accepted
Witness got home in two or three
Gays. On the trip he did not see Ma
chen; Machen and several Washington
people made a trip In August OF 1896
Wnen Mr. LOrenz went along
Mr.. kumler wanted 70 know who in
yited Lorenz TO 20 along, but the prose
cuuon objected. Mr. Douglass said ne
wanted TO show that Machen and Lorenz
I went as guests OF a third party. The
objection was sustained.
Talked of Fastener.
The trip lasted four or five davs.
There was a Conversation bet--een
! Lorenz and Machen about the fastener.
( Witness told Machen ne owned an in
terest in the fastener and was going TO
travel In its interest. He knew post
masters in Chicago, Cincinnati, Detroit.
and other cities.
Machen told him # would not helm
matters to see postmasters. as the de-
/ partment had already adopted the de-
vice. The fasteners would be bouelst
Only SO Iast as the appropriations would
permit. Machen said the devices had
already been ordered for Baltimore and
Philadelphia. The APPROPRIATIONS had
TO be considered. and no solicitation
would help the sales.
No Interest in Patent.
Witness, upon the conclusion OF the
trip. sent two copies OF a contract 10
the Groffs. He signed them both ana
sent them to the Groffs. who did not
accept. because they said Lorenz was L
have half interest in the profits. but nor
In the patent Witness identified his
draft of the letter which accompanied
the contracts.
Witness explained the mutilation of
the letter from Diller Groff. returning
the contracts In tearing up some old
papers IL got into the wastepao,r bas-
ket and when he thought Of 1t he could
only lind the pieces which had been
identified on the stand
The GrOffs said they would draw up a
contract embOdying their ideas but II
was put Off. and never was drawn.
mo Need to Travel"
Witness did tell Diller 3. GroY that
the fasteners would be ins .alled in Bal
timore and Philadelphia.
Il told Mr.. Grofr." said the witness,
4 did not think It necessary 20 travel
ard solicit orders. as the devices could
not be bought in larger Quantities than
the appropriations would permit. There
fore we had better let the thing drift
along for the time. and he agreed. ("
The witness then gave history OF the
oil deals in Ohio, IN which he and Ma
chen became interested Ia 1888. Their