The San Francisco call., 1905-06-01
George B. Lorenz Tells How
He, Machen and Crawford
Looted the Government on
Letter Carrier Satchels
HE DOES NOT SPARE
SELF IN TESTIMONY
Evidence How Two Of Them
Combined to Swindle the
Third Man in Dishonest
Compact They Had Formed

WASHINGTON, May 31.-George e.
Lorenz Of Toledo, Ohio, who was con-
victed with August w. Machen and Sam
uel and Diller- B.. Croft on charges of
conspiracy to defraud the Government in
connection, with contracts for furnish
ing supplies fer the Postofiice Depart
ment, to-day turned States evidence in
the trial of William G.. Crawford who
is charged with conspiracy. Maehen and
Lorenz We're indicted jointly with Craw-
ford. The former pleaded guilty and was
sentenced to an additional two years in
the penitentiary. 1t is generally believed
that Lorenz is testifying for. the Govern
ment under an agreement that he shall
not be prosecuted under indictments
pending against him.
Lorenz did not spare himself in the
confession. He declared that an agree
ment had been formed by himself,
Machen and Crawford to get contracts to
furnish letter-carriers' satchels to the
Postoffice Department. and they had
shared in the profits. The contracts were
gained by reason of Machen'S connection
with the supply division of the Postoffice
Department, and were filled by Craw-
ford, who was the general manager for
the Postal Device and Lock Company of
New York. According to Lorenz, he was
the go-between, although there were
meetings between the three at the room
of Lorenz when he was staying at a hotel
in this city in the early part of June. 1902.
Two OF THEM COMBINE.
''Who first suggested the division OF
the profits under the contract obtained by
Crawfords company?" asked Govern
ment Prosecutor Conrad.
"Machen was in my room.' answered
Lorenz, '.and said there should be some
agreement as to the division of the spoiis
He said: Crawford may suggest that he
receive one-fourth, you one-fourth and
that one-half shall come to me. If he
does, that will be satisfactory to me.
Machen then said that whatever the ar
rangement, he and | should divide our
shares equally. That is, if three-fourths
came, to US, we would divide it"
Further questioning brought out the
statement from Lorenz that Crawf0fs7
had made the suggestion of the division
when they met the next day. and the fig-
ures were in accordance with those that
had been named by Machen. He said that
the three men came to TERMS according
to that agreement.
The witness was examined in relation
to correspondence between himself and
Crawford. The papers include drafts,
letters and other matter. These were ex-
planned by Lorenz. The first one of con-
sequence was a letter inclosing a draft
for s5440, WHICH the witness said Craw-
lOIQ Stlll 10 llilii ana dShtu Llidt ue dl-
tend to it." On the letter was memoir
andum with initials and designation as
follows: "a. W. George" and sBill. ="
After the designation were sums, the first
being one-half of the amount of the draft,
and after the other were sums one-fourth
the amount of the draft.
DRAFTS IN EVIDENCE.
The Government counsel tried to get be-
fore the jury the statement that this
memorandum meant that A. w. Machen
George Lorerz and William G. Crawford
were to receive the amounts named. This
was ruled out but Lorenz testified that
he had made division of the amount of
the draft according to the terms of the
contract. He said that Crawford's share
was sent to him by New York draft
made payable to bearer. The draft was
then offered
Lorenz testified that three payments
were made by Crawford of the money
received from the Government under the
contracts held by the Postal Device and
Lock Company, and that Crawford had
received his second share by draft made
payable to Lorenz, and the last was sent
in currency through the American Ex-
press Company, The drafts and the ex-
press receipt were offered.