The daily morning journal and courier., 1905-06-01
LORENZ TURNS STATES
 EVIDENCE ON CHAPTERS
TELLS OF CONSPIRACY TO DE-
 FRAUD GOVERNMENT.
Agreement Between Machen, Crawford and HimseIf-Shared the Profits Got from Contracts to Furnish Letter Carriers SacheIs to PostOffice Depart- ment-BeIief That Lorenz Will Even tuaIIy Escape.

| SHASAGAs Ao TOSNOAA&Ct DcphEL~
 ment-BeIief That Lorenz VIII Even tuaIIy Escape.
 Washington, May S1.-George E. Lor- eng, of Toledo. O., who was convicted with August W. Machen and Samuel and Diller B. Croft on charges of con- spiracy to defraud the government in connection with contracts for furnish ing supplies for the postoffice depart ment to-day turned states evidence in the trial of William G. Crawford, who is charged with conspiracy. Machen and Lorenz were indicted jointly with Crawford; the former pleaded guilty and was sentenced to an additional two years in the penitentiary at Mounds vile, W. Va, and Lorenz was granted a severance for trial. It is generally credited that Lorenz is testifying for 1 the government under an agreement that he shall not be prosecuted under indictments against him. He has been i sentenced to two years at Moundsville under conviction for conspiring with
 Maehen and the Groffs.
 Lorenz did not spare himself in the testimany. He declared that an agree !ment had been formed by himself, Ma I chen and Crawford to get contracts to furnish lettercarriers' satehels to the 1 postoffice department, and that they
 had shared in the profits. The con
 tracts were gained by reason of Ma chen's connection with the supply di-
 vision of the postoffice department and were filled by Crawford. who was the
 general manager of the Postal Device and Lock company, of New York. 1 The courtroom was crowded when
 Lorenz took the stand. In speaking of ! the arrangement between the three men
 Lorenz called it subsidiary company.
 He was asked by Holmes Conrad, spe-
 cial counsel for the government who
 were meant by subsidiary company
 and he said Machen, Crawford and himself. #
 | Lorenz testified that Machen suggest ed there should be. an arrangement as \ to the division of the profits under the contract, and told Lorenz that Craw- ford would probably suggest that Ma l chen have olle-half and each of the other two one-fourth. Subsequently 1t was agreed that this division be made, and Machen offered to divide equally with Lorenz the three-fourths they re l ceived. The witness was examined in relation to correspondence between l himself and Crawford, including drafts, letters and other matter. The first ex- | 1ibit of consequence was a letter en- closing draft for s5,440, which, the witness charged, Crawford sent to
 Lorenz and asked that Lorenz attend
 to it." On the letter was a memoran-
 dunn with initials and designations as follows: "A. w." Geo." and "Bili."
 After the designations 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. The government counsel tried to get before the jury the statement that this memorandum meant that A.
 w. Machen, George Lorenz and Will liam G. Crawford were to receive the
 amounts named. This was ruled out, 1 but Lorenz testified that he divided 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.
 1 The court was adjourned until to-
 morrow, when the examination of Lor- l eng will be continued.