Omaha daily bee., 1910-08-20
THREE OFFICIALS
4 ARE ARRESTED
Former Illinois Central Managers Are
Charged with Conspiracy to
Defraud Company.
PRESIDENT HARAHAN STARTS IT
Warrants Make Sensational Allega-
tions After Years Investigation.
HAD ALREADY RESIGNED JOBS
Large Amount Of Graft Money Re.
funded Privately.
RAWNS DEATH WAS TIMELY
Demise Headed off warrants which
Would Have Deen Issued for Him
Private Detectives Dug Up
other Frauds.
Warrants Make Sensational Allega-
tions After Years Investigation.
HAD ALREADY RESIGNED JOBS
Large Amount of Graft Money Re-
funded Privately.
RAwTs DEATH WAS TIMELY

CHICAGO, Aug. 1e-Three former Off
cials Of the Illinois Central railroad were
arrested today in connection with the al
legged huge frauds by means of which the
railroad claims to have been defrauded out
of S1,500O00. The men arrested werei
Frank b. Hartman, former general
naragep OF the road Charles l.. Ewing
former manager Of lines north of the Ohio
river, and John X. Taylor. formerly gem
Cial storekeeper Of the road.
The warrants were sworn to by President
Harahan of the railroad company con-
cerned. They charge the three men with
conspiracy to cheat and defraud the rail-
road by false pretenses and with operating
confidence game Hartman and Ewing
were taken TO the Harrison street police
station. Their bonds of $1,000 each were
signed by a professional bondsman.
The allegations in the so-called graft
cases are among the most sensational in
which high officials of a great corporation
ever 4have been named. The investigation
begaB over a year ago. 1t reached a
crisis last spring, when President Harahan
began actions to recover sums said to
aggregate more than $1,000 900. alleged to
have been secured by car repair companies
in conhivance with high officials of the
AStbN' AAdiAl L4NlHSI Ad9lOT anu a
large number of others of lesser magnitude
resigned their positions,
Much of the money is said to have been
repaid privately
Rawn's Name Involved.
The name of Ira G.. Rawn, vice president
of the road. who resigned to become presi-
dent of the Monon and who was found
dead recently at his home with a bullet
wound In his breast. was brought into the
scandal. Murray Nelson, jr., attorney for
the Illinois Central stated today that
Rawn's death headed off warrants which
would have been issued for him.
Private detectives working under the di-
rectons of President Harahan are said to
have unearthed frauds other than those
connected with padded car repair bills
These are said to involve the diverting of
S1,OO0,000 or more from new construction.
The Investigators claim to have secured
several confessions which will be used on
their attempt to fasten the guilt on culpable
persons.
Todays developments bring the name of
Ewing into the case for the first time. He
was seen at his residence by reporters, but
declined to discuss the charges against him.
Hartman embraced the opportunity to de-
clare his innocence.
II have never been approached by any
attorney OF detective engaged in this case"
said Mr. Hartman. II perfectly inno-
cent of any and all charges made against
me. I will admit that have been awaiting
some such action as this in order to refute
the charges.
'I am glad of the opportunity to clear
my name. 1 have always been true to my
friends. and I want them to know, as
will be shown in court that l was always
true TO the Illinois Central"
Harrimans connection with the Illinois
Central covers a period of thirty-one years.
He began as a civil engineers apprentice,
served three years as an assistant road
,pnaster, and rose through the grades of
construction engineer, trainmaster, and
division superintendent TO the general mana
gership.
Other warrants TO Follow.
An official OF the road intimated that
other warrants would follow those issued
today. He declared that the system of
graft unearthed by the railroad makes
political graft look trivial.
I'VE will get the last man In this con-
spiracy II IL takes us down TO the lowli-
est section hand" he declared. "The mass
OF evidence we have secured is so great
THAT It demonstrates that political graft.
in its palmiest conditions. pales into in
Significance beside the hoodwinklng of rail-
road executives by designing underlings.
II predict that other roads will wake up.
and that their awakening will produce
more than one sensation
President Harahan awaited minute details
Of the investigation before striking When
he considered the time ripe. as he did last
night. he took the field himself, He called
on Chief Justice Olson of the municipal
court. and with the assistance OF pile OF
documents and photographs laid the case
before him, Judge Olson referred him to
Judge Bruggemeyer, in the jurisdiction Of
whose branch Of the court the Illinois Cen
tral Officers are located. Judge Brugge-
meyer issued the warrants, but made every
effort TO keep the fact a secret Not until
tho arrests were made this afternoon did
the secret leak.
Hearing on the warrants was set for next
Friday.