Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-09
tuted for the original one. This last agree
ment provides:

tuted for the original one. This last agree
ment provides:
I" That the said George E. Lorenz, party
of the second part, is to have the exclu-
siye right to furnish or cause to be fur
nished to the said Postal Device and Lock
Company from time to time all
shoulder straps used or required to be used
June Is, 1902. That the said Pos
tai Device and Lock Company, party of
the first part shall pay over to the said
George E. Lorenz, party of the second part,
the sum of 4j cents for each A bag or
satchel the sum of s119 for each bag
satchel, and the sum of "a cents for
each bag or satchel.'
''The straps cost 391z cents each, so it
will be seen that Lorenz was to receive in
addition to the full value of the strap,
large part of the profits on the satchei.
THE first order given to the new con-
tractor by Machen was for 5000 satchels,
class B, for which S15,soO was paid by de-
partmental warrant October Is, 1902 On
October p Crawford drew draft for So
44135, in favor of George e Lorenz of To-
ledo Ohio, as his share of this warrant un-
der the terms of their agreement. Lorenz
deposited this draft on October ~, and on
the next day remitted drafts amounting to
81 400 to Machen, and draft, payable to
bearer, for 81 .465. 34 to Crawford, which
draft was cashed at the Bank OF New York
New York, on November {. in a very singu
lar and unusual way, being without in
dorsement
"The same day that this bearer draft
) was cashed Crawford made cash deposit
of 81, ,465 at the United States Mortgage and
Trust Company, New York, N. Y. the en-
tire proceeds of the draft, less "a cents
Other payments were made on the con-
tract on December 20. 1902; January 10
and March II, 1903. in sums of $5,4sIol,
s., ,337 .O2 and $2,374.74 respectively. and
similar remittances were made to CraW-
ford and Machen.
Money Subscribed
"An analysis of their bank accounts
shows that the money which was paid to
Lorenz was subdivided between LorenZ.
Machen and Crawford. Machen and Lo-
REM each received 371a per cent, and Craw-
ford, % per cent
THE Postal Device and Lock Company
was financed by Spencer Trask of New
York. wealthy banker of that city. Craw-
ford in some way made his acquaintance
and induced him to furnish funds for the
promotion of this company.
Under the provisions of the first agree
ment entered into between LorenZ and
Crawford the company was to receive
new profit of % cents per satchel after
which Lorenz would have received the re-
mainder, whatever it might be- Crawford
was paid a salary by the company, so that
if there was any profit in the contract the
company was safe. After the contract was
awarded, however, Crawford and Lorenz
fixed up another agreement in lieu OF the
one already entered into by which LorenZ
was to receive stipulated sum per satchel,
regardless of the profits of the company,
and Lorenz agreed to furnish the straps.
To make this proposition interesting 10
Crawford, Lorenz seems TO have agreed to
pay him personally one-quarter of the bo-
nus, and the company~which Crawford was
supposed to represent mad TO take lts
chances of getting something out of what
was left after the cost of manufacture was
paid.
Straps Never Furnished.
"The straps were never furnished by
| Lorenz: but, by Machens order, the Lamb
strap was furnished as usual and paid for
by departmental warrant at 391s cents
each. Crawford as representative of the
company, paid LorenZ for the straps and
also gave him an additional bonus on
every satchei. Lorenz paid Crawford per-
he received and then gave Machen half
of what remained. Lamb, in the mean
time, was paying to Long and Machen
bonus of cents on each strap.
This probably the most skillful and
complex scheme invented by any of the
| postal grafters.' 1t consisted of double
conspiracy. First, Lorenz and Machen
conspired with Crawford to defraud the
government out of the price of the straps
then Crawford conspired with Machen and
LorenZ to defraud his own company out
of the profits OF the manufa cture of the
satchels, while on the side was Long and
! Machen, with their Accent graft on straps
Methods Were Progressive.
''Machens methods We're progressive
They developed with time. During the life
of the contract with Boyle & Co. he re-
ceived only a percentage from Lamb on the
straps.
when Stern had the contract he received
not only a percentage. on the straps but a
bonus from Stern for furnishing them while
from Crawford he received a percentage on
the straps from Lamb also the price of the
strap from Crawford, and in addition to this
part of the profits on the manufacture of
the satchel itself What his next move
would have been it is difficult to conjecture.
"On July 81, 1898, Machen Crawford.
George E. Lorenz and Martha ]. Lorenz
were indicted by the federal grand jury in
the District of Columbia for conspiracy to
defraud.