| Show DEFRAUDED THE TUE GOVERNMENT I two Rural Free Freo Delivery Clerks Under U Arrests Arrest SEVEN OASES IN ALL ALIJ NOW I Oilier Arrest 01 IIi u Ike Ibe lr It h l IlIe iIii a Juno June E As u IL result of oC o othe the sweeping Investigation of affairs at ut tho thu department Thomas W V McGregor clerk In tn charge of the up upI I for tile the r tree delivery service ervIce and C Ellsworth Upton of one ono of ot McGregors were ar nr arrested fl rested today on the tho charge chargo of conspiracy cy c with Charles K I F of oC to defraud thy thc government In ii the our pur purchase i chase chuse of ot thu l I uther ther IJ u hs furnished the rural throughout the coun country country country try Their cones inoko teven In all 1111 since the Investigation began benn Other OIlier arrests uro tiro expected ll later Tho The story of at arrests Is l best bt told In the following statement given out by tho the fourth assistant ral liral this afternoon Thomas Thoma W McGregor and nud C 1 worth Upton were vere this niter after afternoon noon on warrants sworn out In III Haiti more moro by Inspectors and Sulli Sullivan van un with conspiracy con with Charles E Smith and others otherl to defraud the tho government in the tie purchase of 0 pouches lOuches hom C E 1 of at The fhe complaint sets et eUi forth that or and Upton agreed with Smith to ob oh obtain tain tam for him hUn orders for lor ninny many thousands of ot leather pouches ouches I such Buch as a me nie used usell by hy tural rural letter currier Tho The price agreed upon as 80 tO edits cents per pouch i the ac cc actual actual value wag wa i a less Ios than GO 60 O cents Smith was to pay to them the difference be between between between tween 90 80 ind CO GO cents i 1 ier er 01 pouch It Jt Is b said nt at the department that the actual number of pouches which were vue purchased exceeded for or which the government paid vald S IG 90 cents each or 01 1800 In all till Smith und and re retained reo e d of ot this for tir his Il own on use UHe The Tho remaining SOO was wn paid ail to Mc McGregor McGregor Gregor HuLl and Upton The could have bought the entire number of at pouches from the tho for lor McGregor was as the clerk in charge of 0 rural rura tree free delivery supplies and Upton wan wai n ono one of his assistants Inspector Is I from the St StLouis Louis division and Simons front from rom the tho theana Kansas ana Ilna City division of ot In Iii McGregor ban hao been In the i postal ser er service vice Ice since 1591 He lie cum cumo here heie from froni Nebraska ns n a 11 messenger and sub subsequently HII uh was promoted to a 11 clerkship and finally wa appointed ly by b Mr Ma Mil Mathen then chen In charge e ot or the supply fork tork of the rural uraJ free ree delivery ry tenIce Mr Upton is ts a n and has haM been In postal service for thirteen years ellS Both tin till themen men Inen arrested are ahe married They The were taken tallen Into Inlo custody nt It tho the shortly before the close cIoe of hours Upton asked to be taken Inken before a at nt Baltimore ad of ofIn 0 In this city bee ull of or his hiI wider ac no acquaintance there and bettor opp n a nIt aIt Ity It for tor securing ball According was taken to that city elt by hy two i office Inspectors shortly before LoCore 6 G u wt this evening McGregor was taken 1 to th office onice of at United States Commission Commissioner er or Taylor Talor The arrests arreta Were not made mOlle public un until Until til on account of or the time required 1 nt It the In this city elt to make out the warranty warrants States John C se of arrived arrive hero here late hate evening and was In close consulta thou In an on advisory way 11 with tho the fourth assistant ns for a con time lime over the arrests McGregor hAs lias been boen Jeen under the close clo surveillance of the tIle Inspectors for weeks wee lIs and has hOIl been subjected to a n close chose ex cx examination for tor several hours hour a IL day dur during ing log n a part of or that time The Tho Inspectors nay MY tha they th y completed the evl eI cv dence they the wanted d before taking no ac action notion nothan tion than Vayne was riot noti notified fled fied on his hl hh arrival by hy the Iho fourth as ns assistant n this evening and nn they had a conference on the subject The Tho was wa In Indisposed Indisposed Indisposed disposed and did riot not reach rench the depart until 2 Ho lie omitted the tho th usual 4 Interview with the newspaper men which has hns become L hIt hU dally daily dall custom almost since the Inception than tion of at the Investigation and rent cent word that there was nothing to give out but when Interrogated as n to future ouro developments merely fIrely responded One could never ner ne oh nat the morim mOrr will bring Postal after the arrest would not their investigations In Implicated Mr II Machen who w wan vis ll general superintendent of the tho system system tem tIn while the tha alleged transactions oc occurred occurred In the present matter mauer Later Iter Mr McGregor was taken before United Commissioner Taylor and re to on bond boni He lie waived a pre preliminary p hearing |