New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-30
SlUSH FUND CHARGED
Alleged Legislative Bribery Un-
der Inquiry in Illinois.
WESTERN INDIANA RAILROAD
President Delano Of the Wabash
Explains Meaning of Con
fidential'' Letter.

President Delano Of the Wabash /
Explains Meaning of Con
fidential" Letter.
Chicago April characterization Of
! bribery scandal involving the Chicago A.
Western Indiana Railroad. the Illinois
Legislature Of TIVE Years ago. tho City
Council e Chicago aud sums OF money that
may run anywhere between S6o,ooe and
I treble that amount was ordered H. States
Attorney Wayman to-day a special grsnd
jury VIII conduct the investigation.
| The trouble has been brewing for months.
/ Tho States Attorneys action to-day IL
based on allegations made by John e.
1 Fetzer. who was sued TO-DAY by the Chi /
I csgo & Western Indiana Tor the return /
OF Szse9 which the railroad company
AYERS Fetzer defrouded the company out
! Of IN real estate transactions. Fetzer in
1 HE turn hes asked Tor an Injunction to
restrain the prosecution cf tins suit. alleg-
ing that parts Of the money which the
road seeks TO recover went TO influence
+ legislation g, Springfield ard Chicago.
Ia asking for The. special grand jury
Ststs's Attorney 7vayman's petition states:
He CvsyHan) further shows the court
that on the 2Sth day Of April. 1910 Ger
/ tain bill IN CS2sneeFy vss filed In the su-
psrior court Of Cook County by one John
4 c. Fetzer IL which said Tetzer claims that
large amounts CT money in his possession.
but really the property OF she Chicago 3
Western Indiana Railroad Company, we're
/ ,,sed for unlawful purposes Of bribing pub
I lie oficisisT
sreculator or Agent
I abou, three years ago FetEer, with Ser
I Saunir Thomas, then president OF me I'm
eeze 6 Western Indiana, ana ChaFles II
/ kappss real estate expert set aoc"L -
acquire a right Of way into Chlcago' m
read alleges that Fetzer acted as IT'S asefi''
while Fetzer declares that he was not an
agent. but 8 Spectator, Who purchased
LAND and sold II 20 the COMPANY, the com
rsnv having the night TO reject any parcel
/ offered
{ IN February last charges were made that
/ Fetzer. Thomas and Ksppes had defrauoed
the company out Of Ss5o,oe9 in these deals
I S-Iit was threatened by the read, but ctter
! conferences the whole matter. under formal
! agreement OF the persons CONCERNED, was
! referred 20 ex-Judze L. {. Field. whose
/ decision as arbitrator wes 10 be final
Ex-Judre Field recently made his awsrd,
/ holding that gross fraud had been perps-
trated on the railroad company, and OF
] derinC the rCfUnolng Of S15,t-V.
4 U became known TO-DAY that ThornsS sno
. Kapres recently returned TO the Golfers Of
the company S7sooo, stating that this sum
exhausted their individual resources. FEET
ger refused 80 abide b. the svard, and TO-
osv's suit wse brought against him.
The suit. however, names Thomes end
Herpes. s. well as Fetzer.
Letter from s. a, Delaro.
Fetzer-s bill Tor an Injunction included as
a. exhibit letter from :. = Delanc,
president Of the Wabash Railroad ard rep
resentaJive Of thet read on the hoard Of
directors Of the Chicago & Western Indi-
ana. This letter is dated Nsrch I, 1917. and
s marked "cenfdentisl.' i follows.
NJ. e. Themes president and general man
Der -. irelese . letter from MI.
C.. y. Travou@ which explains itself. This
is written as a. result o. "a conference
which dr. Travous lad With Judge Henley
81 the time We sold our notes 20 the Boston
, parries. believe We shoglo, ~ q quiet
way. set the legislation which judge Hen
lev and our counsel concluded Is desirable.
l. il a bed thing u have something Of
tlis kind brought up by the bankers every
TINE We have 70 do any negotiating for the
sale Of securities. Il might give US very
serious trouble. VS. had case Of this
/ kind On the Burlington. where rather
T SUBSCRIPTIONS lawyer cot hold u = tech
E ulcalitv Of this KIND. and gave us great
, deal 81 Uo1ble-
According - = sta+efeieHt dictated by Air-
Dsiano to-day. the meaning of his letter &C
~. Thornas 7vculd stanA ont ia innocuous
i-nocence hsd NJ FetzeT also appended
the letter Of Mr.. TFevous.
Mr.. pelano's Explanation,
4 --r-rGer the Illinois 1av-. vte- tie Western
Indiana and Two smaller roads were con-
solegtea, sonse thirty ears sso. tbs con
! soHdation. according 10 the opinion u some
lawyers including NJ. TraHoUs. contained a
tc>L1dcal naV, explained III. Delano.
Z Two roads might consolidate. but not
, three. Two reads might consolidate ana
then take N q third. how ever. The West
ern Indiana was formed in the former man
Ier, AID g.c. the occasion three years ago
q the sale Of sscgo,GGe Of notes Of tie
. Western Indiana. Nr- TroIpus pointed cut
the fzv. rr Sll,ged flaw, in the ooHsolida-
I tion. Il was plain that y some unscrIfpu-
lci.s lawyer discovered tie sitGatjcr, inuo-
cent 81 itsslf, he I:rigat make trouble. par-
;i-aIarlz for innocent bondhol5er- in az.
p the road had put ont ahcut $4,000 an
bonds hich might 30 inval1cated.
Hence, Nc wished Tor TIE valuation act.
ana We wanted il in u quiet Wy. TO avoid
perturbiug iuaoceut holders, Who might ~
ageerate tecbnicaity into something my
-The only opposition which developed 10
or bill 80. 10 for va,ida1ion was IN con-
4 n.ction vite ;lis story. hat caus Ont thst
. ,bf tsin had been in;roduced to validate the
( action of certain financing operations IF
the Chicago & Alton, the Terort in relation
20 which had ben frsdo public while 1Sill
- vas pending for second reading When
! tsir opposition developed ] personally eN-
plafnc5 70 one or mort members Of the
Legislature the exact nature Gf the bill.
end 1Ir. 2 Thomas, then president n the
! road. personally stated 10 Moron y. Hull.
Z rnenlLtr q she Legislature. that no
1 1rcney Whatever was being used or would
&c used 10 bring about the rss.sEc u The
set.
Tie frrp-rts-- hing fer tho public -
4 remember is that this story OF u siuSh
fund is got Up BY FetzEr o. his counsel 80
divert puollc attention 10 the real issue.
Tie Chicago a Western Indiana vax
rcbbcd, ard it demands restitution q IT'S
u.oner- Il is no adequate defence 10 Say
that this money though stolen. vas Used
for the benefit. II The railroad COMPANY in
4 cor.,lptlng the Legislature or the City
cornell OF sny cI,e else. / feel conhder;
that 70 such use was made II tle money.