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

DULUTH, Mimi, Sept. 13.-Since July
81 detectives in the employ Of the
United States Mutual Accident associa-
tion of New York, have been looking
up case of what was believed to be
a 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 snsued severely beat the police
man with the butt end OF revolver
and shot at him, the ball
InAicting o 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 . s..
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 the
north shore about eighteen miles from
Duluth. He righted the boat, he said
and rowed back to this city, and going
to Krayenbuhps 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 $40, 900, and that the poll
cies were made out in favor of Krayen
buhl. About the middle of August {
| demand was made for the insurance
| money, and the company began an in
vestigation. Several special agents
were sent here, and very soon 1t wai
decided that there had been fraud. II
was found that during the whole time
Clark said he was drifting on the nortf
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 il
Lake Superior for the length of time
i Clark said he had been drifting. Tn.
matter resolved itself into a question
whether Gregg was party to tn,
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 subsequen
the drowning episode, and from
there he was traced east. The sam,
dispatch which ordered the arrest o
| Krayenbuhl stated that Gregg ant
! Clark had been arrested together il
Philadelphia. Clark is a brother o.
one of Duluths prominent merchant.
and all the parties implicated are peo
ple Of good standing.