The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1893-09-13
A HOT RECEPTION.
Duluth Officers Shot at While Trying
to Arrest Frederick Krayen-
buhl.
A Reporter Who Was Out After News
Received a Scalp
Wound.
Story OF an Attempt to Swindie In
surance Companies-Two Arrests
Made.

DULUTH, Mimi. Sept 13.-Since July
21 detectives in the employ of the
United States Mutual Accident associa-
tion of New York, have been looking
mp case of what was believed to be
q graveyard insurance fraud in large
sum. Late in the night kilograms
were received here from Philadelphia,
where one of the suspects had been
traced, announcing the arrest there OF
W. B. Gregg, the insured. and John 7.
Clark, the only witness of Gregg's sup
posed death. Officers were at once
sent to the house of F. E. Krayenbuhl,
the beneficiary under Gregg's policies,
to arrest him. The officer, on arrival
at Krayenbuhl's residence at a. m.
called him to the door and attempted
to make the arrest, but Krayenbuhl at
once became desperate, and in fight
which ensued severely beat the police
man with the butt end Of q revolver
and shot at him. the ball
Iuficting q Scalp Wound
on reporter who was present Kray-
enbuhl broke away and retreated in to
his house and could not be ar
rested, there being no warrant
Policemen were stationed to guard
the dwelling until morning, but when
morning CRIME Krayenbuhl was not to
be found, and no trace has yet been
picked mp
On July 81 the story became current
on the streets of Duluth that John
Clark and w. B. Gregg had been cap
sized while out sailing and that Gregg
had been drowned. Clark told story
of remarkable endurance, how. after
the boat had capsized, he clung to the
| Overturned Craft
from 10 one morning until o'clock the
next, when the boat drifted on ths
north shore about eighteen miles from
Duluth. He righted the boat, he said
and rowed back to this city, and going
to Krayenbuhls house, tainted over the
doorway. There were some very srs
picious circumstances connected with
the case. Some weeks later it de.
veloped that Gregg's life was insured
shortly before the time of his disap
pearance for $50, QUO, and that the poll
cies were made out in favor of Krayen
buhl. About the middle of August I
demand was made for the insurance
money, and the company began an in
vestigation. Several special agent.
were sent here, and very soon it wal
decided that there had been fraud I,
was found that during the whole time
Clark said he was drifting on the north
shore the wind was blowing in an
Entirely Opposite Direction.
1t was found, too, from the testimony
of vessel men, that no one could live in
Lake Superior for the length of time
i Clark said he had been drifting. The
matter resolved itself into a question
whether Gregg was party to the
fraud or whether he had been mur
dered. From a vessel man it wa.
finally learned that Gregs had beer
seen at La Pointe, small place on tn,
Wisconsin shore, some days subsequent
. the drowning episode, and from
there he was traced east. The same
dispatch which ordered the arrest o.
Krayenbuhl stated that Gregg and
| Clark had been arrested together in
Phil adelphia. Clark is a brother o
one of Duluth's prominent merchant.
and all the parties implicated are peo
pie of good standing.