The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-01-04
MAKES ASTOUNDING REVELATIONS
{ Continued from First Page)

ne as an employee of the South Bend
National bank had seen cashed by
Fred Cole two $500 checks in favor Of
J. f. Cole and he wondered why the
company should pay that sum to Fred
Cole who was in no way connected
with the concern.
Later, Brown, sr., came to Carskad-
don to find out why that sum or mon
ey had been paid to Fred and In the
conversation that followed. admitted
that the company was robbing him at
every turn and even suggested bring
ing suit to recover part of the money
that he thought had been misappropri-
ated. Later on, Brown claimed that he
had been forced out of the company
by Cole and Harrop.
At his first opportunity Carskaddon
demanded, in the presence of Cole,
Harrop, Brown and his son. NJ S.
Carskaddon to know why the $500
checks had been paid. The question
angered both Cole and Harrop and al
most in the same breath they told
Carskaddon that IL he wasn't d
fooP' he would know that the money
was paid to the "--, -. thieves
In the Indiana Harbor' council"
1t was noticeable fact that the coun-
Gil members were seldom called by
name and were generally designated
in some other way. At one time Cole
Is credited with saying. Il got some of
the money back from one fellow, thank
God"
On one occasion while in chicago.
Carskaddon said he was in company
he aXn f.
ing Hale to come to the Kaiserhof and
demand some of the bribery money.
but he was going to stand him off
for while.
Then Harrop is said to have ex-
planned a plan he had to get the drop
on Hale. He said that Hale was furnish
ing the construction company with
certain materials in which he deals, al
though as a city official, it is against
the law for him to do so when the
construction company is working or
q city contract.
Mayor Is Dragged In.
When Hale arrived Harrop let him
know that he could not go back or
the construction company or he (Hale)
would be held liable. In this manner
the mayor of East Chicago was trapped
and was thenceforth made an unwill-
ing ally OF the South Bend concern
through the unexampled trickery OF
some of it's officials.
Carskaddon's disagreements with the
members Of the firm over matters OF
policy continued and soon he made
the demand that they buy him out and
release him from the firm. This was
accomplished under an agreement en-
tered into May 10, 1905.
The terms of the contract were that
Carskaddon was to accept $4,000 for
his $4,000 worth of stock and that
$4,000 of this amount was to be paid
in Indiana Harbor Improvement bonds,
(which were to be delivered not later
than August IS, or ninety days after
the date of the contract.
Extra work was done on the pump
ing station and the contract price was
Increased from $4,000 to $4,000 and
consequently the bonds We're not is
sued until February 1906.
Mailing Takes Hand.
IT was at this time that an appeal
was taken by John b. Mailing. and some
one or two other East Chicago citizens
who believed that the assessment
against their property was too high
Harrop, Hale and Ottenheimer went to
Mailing and begged him to drop the
appeal fearing that 1t would open the
whole case. Finally, Mr. Mailing, act
ing for the East Chicago company
agreed to drop the matter and accept
their proposition that his company b,
reimbursed to the extent of 5000 fol-
the unjust assessments that had beer
made against it in lieu of a reas
sessment.
Shortly afterwards Cole and Har
rop made a demand on Carskaddor
that he stand $500 of the $1,000 los.
because they claimed that he had in
formed Mailing of the bribery deal.
and placed him in a position to black
mail" them. Carskaddon denied tina
he had ever seen Mailing and said tina
the first he, (Carskaddon), knew of tn,
$4,000 deal came when Hale told hin
about 1t and he saw Mailing and con,
nrmed the report.