Omaha daily bee., 1910-05-01
ILLINOIS AFTER GRAFTEl S
States Attorney in Chicago Alleges
Bribery in Legislature.
RAILROAD SUES JOHN c. FETzER
ChicnRo & Western Indiana Ayers
that Former Omaha Man De-
frauded Company out of
s525,OOO.

CHICAGO, April 3O.--Investigetion Of a
bribery scandal involving tho Chicago 4
Western Indiana railroad, the Illinois
legislature, as composed two years ago, the
city council OF Chicago and sums of money
which may run anywhere between t6e0V
and treble that amount, was ordered by
states Attorney wayman, who yesterday
directed that Especial grand jury be en-
paneled TO conduct the investigation.
The states attorneys action today Is
based on allegations made by John e.
Fetzer who was sued today by the Chi
cago & Western Indiana for the return
OF s525, 900 out OF which the railroad com
pany AYERS Fetzer defrauded the company
in real estate transactions Fetzer in has
turn, has asked for an Injunction to en-
join the prosecution Of this suit. alleging
that parts of the money which the road
seeks to recover went TO influence legisla-
tion, both at Springfield and at Chicago.
Asking for the special grand jury, state $
Attorney Waymans petition states
He CWayman) further shows the court
that on April 2S, A. d. 1910, certain bill
In chancery was filed in the superior court
Of Cook county by one John c. Fetzer in
which said Fttzer claims that large
amounts OF money in his possession, but
really the property of the Chicago s.
Western Indiana railroad, we're used for
unlawful purposes OF bribing public Off
cials."
seek RiRht-Of-Way.
About three years ago Fetzer, with Ben
jamin Thomas then president of the Chi
cago & Western Indiana, and Charles r.
Kappes, a real estate expert, set about
to acquire a right-of-way into this city
The road alleges that Fetzer acted as It's
agent, while Fetzer declares he was not
an agent, but a speculator who purchased
land and sold it to the company, the COM
pany having the right to reject any parcel
offered.
In February last charges were made that
Fetzer, Thomas and Kappes had defrauded
the company out of SS50,OOO in these deals
Suit was threatened by the road, but after
conference the matter, under formal agree
ment of the parties concerned, was referred
to former Judge E. c. Field whose de-
eision as arbitrator was to be final. Judge
Field recently made his award, holding
that gross fraud had been perpetrated upon
the railroad company and ordering the re-
funding Of $525,OOO
Recently, It leaked out today Thomas
and Kappts returned to the Golfers Of the
company a total of $4,000, stating that this
sum exhausted their individual resources
Fetzer refused to abide by the award and
today's suit was brought against him. The
suit, however, names Thomas and Kappes
as we'll as Fetzer.
Alleges Flaw in Law.
Under the Illinois law, when the West
consolidated some thirty years ago, the
construction, according to some lawyers
contained a technical flaw" explained Mr.
Delano Two roads might consolidate, bu
not three, but two roads might combine
and then take in a third, however"
The Western Indiana is said to have
taken advantage Of this "aileged flaw" II
the statutes and united the three roads, ac
cording to the scheme.
Fetzer's bill for an Injunction included al
an exhibit a letter from E. A. Delano
president OF the Wabash Railroad company
and representative of that road on ih'
board of directors Of the Chicago g. West
ern Indiana. This letter reads;
March II, O7.-(Confidential:)- )-Mr. B
Thomas President and General Manager
Chicago & Western Indiana Railroad
Dear Blr-I encolse letter from Mr.: G. n
lIaVOuH, HIlCu GApldlilo ia 9CALs hlS
written as q result of a conference whicr
Mr.. Travous had with Judge Henley at tn
time we sold our notes to the BostoI
parties / believe we should, in a quie
way, gst the legislation which Judge Hen
ley and our counsel concluded is desirable
1t is a bad thing to have something of thi'
kind brought up BY the bankers every ttm'
we have to do any negotiating for the sail
of securities 1t might give us very serious
trouble. We had case Of this kind OF
the Burlington, where rather unscrupu
lous lawyer got hold OF technicality o.
this kind and gave us a great deal o
trouble.
According to a statement dictated by Mr.
Delano today the meaning OF his letter Il
Mr.. Thomas would stand out in innoeuoui
innocence had Mr.. Fetzer also appended
the letter OF Mr.. Travous.
Members OF the aldermanic body are saiC
to have been approached in connection
with securing land for right-of-way int
the city,