Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1910-01-22

VI VoSO,OOO ItOIH tht NIlCdQO
Western Indiana railroad by Ben
jannin Thomas, former president
OF the road; John c. Fetzer and
Charles r. kappes, both of whom
handled real estate transactions
for the road, was continued today
by States Attorney Wayman. A
large number of witnesses were
examined, but no new sensational
developments resulted.
Chicago, Jan, 20.-That John c. Fet-
ger, president Of the Illinois Northern
railroad company, prominent real es-
tate dealer and flnancier, who has
been receiver for many companies, en-
tered into a conspiracy with Benjamin
Thomas and Charles r. Kappes when
Mr. Thomas was president and Mr..
kappes was real estate agent of the
Chicago & Western Indiana railroad,
and defrauded the stockholders of that
road out of $S50,OOO through real es-
tate transactions, was the sensational
charge made yesterday in bill filed
by the railroad in the circuit court to
COmpel au accounting.
Following the filing Of the bill,
States Attorney Wayman and his as
sistant, Thomas Marshall, held secret
conferences with many of those who
had real estate dealings with the Chi
cago & Western Indiana railroad, and
criminal prosecution may result.
BENJAMIN Thomas was president of
the railroad from June 8, 1891, until
he resigned by request in June, 1908,
and the land transfers in which the
three men are implicated were made
during his administration. Charles r.
kappes was during that period the
chief real estate agent of the company
and resigned at the same time as his
chief. Though Mr.. Fetzer was never
an officer of the railroad, he admitted
last night that he had made real estate
purchases for them.
Calls in States Attorney.
That when Thomas and Kappes re-
signed they destroyed many of the Of
fee records which would tend to i'm
plicate them, is charged by the rail
road.
these men expended more than ST.
ana railroads money for real estate
and defrauded the company out of at
least S850,000 Of that amount by
charging the company far in excess
of that actually paid the men who sold
the land. The bill was sworn to by E.
B. Pryor who was elected president Of
the road at meeting of the board of
directors yesterday when the resigna-
ton of William j. Henley was accept
ed. Mr.. Henley was elected to the pres
idency following the resignation Of
Mr.. Thomas in June, 1908.
1t was learned yesterday that the
board of directors at meeting last
Friday passed resolution asking Mr..
Wayman to take up the matter of the
alleged swindle as set forth in the bill
filed in the civil court yesterday.
Witnesses Heard in Secret.
Mr.. Wayman delegated the investi-
cation of the charges to Mr.. Marshall,
who represents the state before the
grand jury, and as soon as the bill was
filed witnesses in the case began to ap-
pear at the criminal court building.
Attorney Walter l.. Fisher, attorney
for the stockholders who claim to
have been defrauded, was in the
states attorneys Office for almost IL
hours, and Francis S. Peabody, presi,
dent of the Peabody Coal Co., which
acquired a part of the land purchased
by the railroad, was there until almost
midnight
In carriages and taxicabs the wit
nesses came to the building and were
escorted to the Office of Mr. Marshall
through private entrances. Their
story told. they were as mysteriously
spirited away. The more important
witnesses We're detained several hours
and lunch was brought in for them.
Many of these witnesses were the
dummies" which the bill fled yester-
day asserts were used In fraudulent
transactions by Messrs. Fetzer, Thorn
as and Kappes. The title to much Of
the land purchased by the railroad
asserted, and then sold to the railroad
of the conspirators.
100000 Spent in Four Months.
In pursuance of the conspiracy, it is
charged, THOMAS and Kappes placed
July, August and September, 1906,
sums of money aggregating $685.
S99.25.
Out of this sum, it is shown. Fetzer
reported he purchased property only
legally described in the BILL from the
following persons for the amounts set
opposite their names: