The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-04-30
INVOLVES c. G. w. |. RAILROAD,
ILLINOIS LEGISLATURE AND
CHICAGO COUNCIL.
A SPECIAL GRAND JURY.
Ordered BY States Attorney Way
man---Tock Action on AlIesa-
tions Of John c.
Fetzer.

1 tl0n OF bribery scandal HVOlVlnl
. the Chicago and Western Indian;
, Railroad, the Illinois legislature a
composed two years ago, the city
council Of Chicago, and Ssums 0
money which may run between $50
/ 900 and treble that amount, was or
dered by States Attorney Waymal
here today. Wayman ordered the EN-
paneling of a special&grand jury. His
action was based on allegation made
by John c. Fetzer, who was sued to
day by the Chicago and Western In
diana for the return of S525, 900 which
the railroad AYERS Fetzer defrauded
the company out of in real estate
transactions. Fetzer has asked an IN
junction to enjoin the prosecution, al
leging that parts of the money which
the road seeks to recover went to in
fuence legislation, both at Spring
field and Chicago.
About three years ago Fetzer, with
Benjamin Thomas, then president OF
the Western Indiana, and Charles x
Kappes, a real estate expert, set
about to acquire a right of way into
this city. The road alleges that Fet.
ger acted as its agent, while Fetzer
declares that he was simply a specu.
lator who purchased the land and sold
ii to the company.
In February last charges were made
that Fetzer, Thomas and Kappes had
defrauded the road out of $S50,000 in
these deals. Suits was threatened by
the road but later the matter under
agreement was referred to former
Judge f. c. Field, as arbitrator.
Fields award held that gross fraud
had been perpetrated upon the rail
road, and ordered the refundlng Of
$525,GG0.
Recently, it leaked out today,
Thomas and Kappes returned to the
company total of $4,000, stating
that this sum exhausted their individ-
ual resources. Fetzer refused to
abide by the award, and today suit
was brought against him.
The suit also names Thomas and
Kappes.
Fetzer's bill for an injunction in
cluded as exhibit a letter from f. A.
Delano, president of the Wabash rail
road, and representative of that road
on the board of directors of the West.
ern Indiana, The letter is dated
March l, 1907, marked confidential
and addressed to Thomas, reads
Il enclose letter from c. N. Ira
vous which explains itself. This is
written as a result of a conference
which Travous had with Judge Hen.
ley at the time we sold our notes to
Boston parties. | believe we should,
in quiet way, get the legislation
which Judge Henley and our counsel
concluded is desirable 1t is a bad
thing to have something of this kind
brought up by bankers every time we
have to do any negotiating for the
sale OF securities. 1t might give us
very serious trouble. We had case
Of this kind on the Burlington, where
rather unscrupulous lawyer got hold
Of a technicality OF this kind and
gave us a great deal of trouble"
Delano said today that the meaning
Of the letter would stand out in in
nocuous innocence had Fetzer appre.
hend the letter of Travous.
He said that the Western Indiana
and two smaller roads were consoli-
dated 30 years ago, and the consolida-
ton contained technical flaw, ac
rording to some lawyers, including
Travous. Under the Illinois law two
roads might consolidate, but not three
Two might consolidate and take in
third. The Western Indiana was
formed In the former sale, and on the
occasion Of the sale of $4,000 by the
road three years ago Travous pointed
put the alleged flaw. He says 1t is
plain that If some unscrupulous law
YER discovered the situation, he might
make trouble, particularly for limo.
cent bond holders. He says In all
he road put up SAC 1000, 900 in bonds,
which might be involved. Hence the
'oad wished for the invalidation of
he act and wanted in in quiet"
way to avoid perturbing the bond
1olders who might exaggerate the
He says the only opposition to the
oil (No. IT'D was in connection with
story which came out that the bill
was introduced to validate certain
financial operations of the Chicago &
Alton. The bill had then gone to
second reading. He says he personally
explained to several members Of the
legislature the exact natur OF tho