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Postmaster General Is Focus of Probe

From Times Staff and Wire Reports

Postmaster General Marvin Runyon said he is being investigated by the Justice Department for possible conflict of interest in connection with a Post Office vending machine proposal. Under the proposal discussed last year, the Postal Service would allow Coca-Cola Co. to place its vending machines in post offices around the country. However, the question of conflicting interests arose since Runyon owned shares in Coca-Cola that he had purchased in 1977 and were held in blind trust between 1989 and 1994. In the statement issued by his office, Runyon said he had withdrawn from the discussions and had sold the Coca-Cola stock. The Washington Post, quoting two postal sources, said the case was taken before a federal grand jury. The Justice Department had no comment.

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