Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-09-22
MONEY BY EASY MEANS
Prominent Residents of New
York Under New Charges.
PLAYWRIGHT AND LAWYER
Millionaire Clubman and His Wife
Allege Blackmail.
INQUIRY BEGUN IN CHICAGO
Grand Jury Returns Indictments
and Accused Men Arrested on
Bench Warrants.
INQUIRY BEGUN IN CHICAGO

clubman. and his wife, who is widely
known in Chicago society, are named as
the principal witnesses before the grand
jury in a case In which 1t Is charged
that an attempt was made to extort
$16O, 900 from them by means OF black
mailing letters. In consequence Of the
testimony Of Mr.. Channon, accompanied
by the letters which he said his wife had
received. the grand jury returned In
dictments against Attorney L. Scott
Hazelton. a New York playwright.
Bench warrants were issued at once fol-
Hazelton and Kemper, and they were ar
rested at 8 O'Clock last night on, the ninth
taken to the county Jail. Neither would
say anything except that II they had
done anything wrong they did 1t IN
Willingly.
The bench warrants were quashed today
when the Indictment voted Yesterday was
returned before Judge McEwen today
Bali to the extent of 81, 500 in each case
was furnished by hurry Nelson, jr.
Mr.. and Mrs. Channon were in court
the former with packet of oapers wh1cf
that an attempt had been made by the de
PENDANTS to blaickmail him and his wife
in connection with the settlement OF the
estate of Mabel Arey Ludlam. half
sister of Mrs. Channon.
1t is alleged that the letters to the
Channons designed to compel them to
pay money were sent to the chicago
Athletic Association and to their home
In Rush street. A letter alleged to have
been signed by Kemper and Hazelton and
is alleged. that settlement be made OF
claim, upon the refusal of which the
writer's would precipitate scandal.
Several years ago relative OF Mrs
Channon, Mabel Aery. was married to an
actor named Ludlam, whose home Is IN
New York city, but who. according to
the letter upon which the indictment is
based, IL at present in Chicago. In the
letter the insinuation is made that Mr..
Channon and the American Surety Com
pany Of New York in handling the estate
of Mabel Aery, defrauded her out of
100000. and that unless a settlement
was now made suit would be brought in
the United States circuit court.
Exhibits Copy Of Decree.
Mr.. Channon showed the grand jury
a COPY of the decree of the court, en-
tered several years ago. in the case of
the estate in question. in which he was
administrator, and which was closed
cerned. He said that the young woman
had been married to man three times
her age.
The two accused men came to Chicago
for the sole purpose of getting the money.
according to Mr.. Channon, and they pass
ed some Of their time in fashionable clubs
and at an address in Dearborn avenue.
1t was not made known whether Mabel
Aery Ludlam and her husband, the actor.
will in any way be drawn into the case
as witnesses.
Henry I. Hazelton. New York news
paper man. a cousin Of George C. Hazel
ton jr., made the following affidavit,
which was presented to the grand jury:
introduced him to e. j. Meeger, an able
lawyer, who was to do the law work in
the Ludlam case against Channon. while
George was to get business. After Nee
drawing up bill of complaint. he showed
1t to George, who thereupon locked 1t up
and kept 1t for several weeks. When 1t
was returned he made affidavit that he
had not copied the papers. an ahidavit
apparently false. for he has the copy and
is planning to use this on Channon in
Chicago. I want to punish his treachery
to Meeger and balk the effort to black
mail Channon.'
A letter written by Meeger to Henry I.
Hazelton explaining his withdrawal from
the case was submitted to the grand jury.
According to this letter, Henry w. Aery.
a rich Philadelphia. married widow
with several children. one OF whom.
named Leigh became the the was OF ber 'a ahS
by her second husband. Aery died and
Mabel became the residuary legatee to
about $4,000
While Mabel was still a minor her mo-
Their died and she went to live with her
sister. Mrs. Channon, and Mr.. Channon
was appointed her guardian As such. he
took over her property. When Mabel
reached the age of eighteen Channon's
account as guardian was settled to her
satisfaction and he was discharged, but
he continued to manage her property,
she living in Channon's home.
After a few years Mabel became am
hitious to go on the stage and in some
way became acquainted with an actor
named Ludlam and was married to him,
he being more than twice her age, with.
it is said. family. of children older than
Mabel. Then there was hurried settle
ment with Channon. inspired by Lud-
lam, and large .s sum n OF ch money was sns
receipts were taken therefor.
subsequently, 1t Is charged. Mabel ana
her husband undertook to make Channon
pay her more money, and to that END en-
ployed an eminent firm of LAWYERS IN
Chicago, the leading member of which Is
a Mr.. Reid. AS a result Channon and his
wife turned over to Mabel a house and
lot in Chicago and Mabel and her hus-
band signed release.
Formal Demand for Money.
About May this year. Meeger con-
tinues, II was introduced to one George
c. Hazelton. jr., a lawyer, and he told me
he had a case for Ludlam. who thought
his wife should get more money from
Channon, and he gave me the mass Of
papers to be filed in the United States
court at Chicago. l examined the papers
and accepted Hazelton's statement, and
after spending many weeks I completed a
bill Of complaint and delivered the same
to said Hazelton."
Then, according to Meeger, Hazelton
forced him out of the case. and Meeger
saws he was informed that it was Ha-
zeiton's intention Ito go to Chicago and
send for Channon and show him the bill
of complaint and tell him that unless he
settles the case he will publish the
charges contained in it in the Chicago
newspapers with the view Of destroying
Channon socially, and also to see Chan
mons father. who is said to be wealthy,
and to ask him whether he wishes his son
to be exposed
Mr.. Channon alleges that George Hazel
ton then employed L. Scott kemper to
assist in blackmailing him.
Mr.. Channon is member Of the Chi
cago Athletic Association, Glenview
| Country. Chicago Yacht. Columbia Yacht
Germania. Press, Forty and Union
League clubs.
Mrs Channon came into her greatest