Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1910-08-20
Three Men Once High in Illinois
Central Accused of Grating
Million and a Half
SCANDAL TO INVOLVE MANY
Lawyer Says Only Death Pre-
vented Arrest of President
RaWn of the Monon
ASSOCIATED Press)

CHICAGO, Aug. 19.-Three former
officials of the Illinois Central Railroad
company were arrested today in con-
nection with alleged huge frauds by
means of which the railroad asserts it
was swindled of $1,500,000. The men
arrested were:
Frank b. Hartman, former general
manager of the road.
Charles L. Ewing, former manager
of lines north of the Ohio.
John K. Taylor, formerly general
storekeeper of the road.
The warrants were sworn to by
President Harahan Of the railroad con-
cerned. They charge the three men
with conspiracy to cheat and defraud
the railroad by false pretenses and
with operating a confidence game.
Hartman and Ewing were taken to the
Harrison street police station. Their
bonds of $4,000 each were signed by
professional bondsman.
The allegations in the so-called graft
case are among the most sensational
in which high officials of a great corr
poration ever have named. The inves-
tigation began over a year ago. 1t
reached crisis last spring when Pres
ident Harahan began actions to re-
cover sums said to aggregate more
than $1,000,000 alleged to have been Sc
cured by car repair companies, financed
by high officials of the road.
DEATH SAVES RAwN
Much of the money is said to have
been repaid privately. The name of
Ira G.. Rawn, vice president of the road,
who resigned to become president 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., attor-
ney for the Illinois Central, stated to-
day that Rawn's death headed off war
rants which would have been issued
for him.
Private detectives who are working
under the directions of President Hara-
han are said to have unearthed frauds
other than those connected with padded
car repair bills. These are said to in
volve the diverting of $1,000,000 or more
from new construction. The investiga-
tors declare they have secured several
confessions which will be used in their
attempt to fasten the guilt on culpablo
persons.
Today's 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 tho
charges against him. Hartman en-
braced the opportunity to declare his
innocence
DECLARES INNOCENCE
"I have been approached by an at
torney or detective engaged in this
case" said Mr.. Hartman. "I am per-
fectly innocent of any and all charges
made against me. l will admit that
have been awaiting some action such
as this in order to refute the charges.
I am glad of the opportunity to clear
my name. I have always been true
to my friends and I want them to
know, as will be shown in court, that
I was always true to the Illinois Cen
trail"
Harriman's connection with the Illi-
nois Central covers period of thirty
one years. He began as a civil engi-
neer's apprentice, served three years as
an assistant roadmaster and rose
through the grades of construction en-
gineer, trainmaster and division super
intendent to the general managership.
An official of the road intimated that
other warrants would follow those is
sued today. He, declared that the sys-
tenn of graft unearthed by the rail-
roads makes political graft look trivial.
HARAHAN STRIKES BLOW
1--WE will get the last man in this
conspiracy if it takes us down to the
lowest section hand" he declared. 1.-THE
mass of evidence we have secured dem
onstrates that political graft in it's
palmiest conditions passes into insig-
nificance beside the hoodwinking or
railroad executives by designing under
lings. I predict that other roads will
wake up and that their awakening will
produce more than one senstaion."
President Harahan awaited the MI
mute 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 Chlef Jus,
tice Olson of the municipal court and
with the assistance of pile of docu-
ments and photographs laid the case
before him. Judge Olson referred him
to Judge Bruggemeyer, in the juris-
diction of whose court the Illinois Cen
tral offices are located. Judge Brug-
gemeyer issued the warrants, but made
every effort to keep the fact secret.
Not until the arrests were made this
afternoon did the secret leak out. 1t
created a sensation in railroad and so
cial circles, where the defendants are
we'll known. Hearing on the warrants
was set for next Friday.