The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-04-30
BIG SCANDAL
BEING AIRED
Chicago & Western Indiana
Railroad, Last Illinois Leg
islature and the City Council
of Chicago Are Involved.

Chicago, April 29.-InvestfgatlOn OF
bribery scandal involving the Chicago
& Western Indiana railroad, the Illinois
legislature as composed two years ago,
the city council of Chicago, and sums
of money which may run anywhere be-
tween 100000 and treble that amount,
was ordered by States Attorney Way
man, who today directed that a special
grand jury be empanelled to conduct the
investigation
The action today is based on allega-
lions made by John G. Fetzer, who was
sued today by the Chicago & Western
Indiana for the return of $525.O0O out of
which the railroad company AYERS Fet-
ger defrauded the company in real es
tate transactions.
Fetzer in turn asked for an injunc
ton preventing the prosecution of this
suit. alleging that part of the money
which the road seeks to recover went
to influence legislation both at Spring
field and at Chicago.
In asking for the special grand jury
States Attorney Wayman's petition
He (Wayman) further shows the
court that on the 2Sth day of April A.
ID. 1910, a certain bill in chancery was
filed in the superior court Of Cook
county by one John FetZer in which
Fetzer claims large amounts of money
in his possession, but really the prop
erty of the Chicago & Western Indiana
Railway company were used for I'M
Gals"
Charges and Counter Charges.
About three years ago Fetzer, with
BENJAMIN Thomas. then president of the
Chicago & Western Indiana. and
Charles r. Kappes, real estate eX-
pert, set about to acquire right OF way
into Illinois. The road alleges that
Fetzer acted as its agent, while FetZeT
declares he was not an agent, but
speculator who purchased land and sold
il to the company, the company having
the right to reject any parcel Offered.
Last February charges were made
that FetzeT Thomas and KappeS had
defrauded the company out of So5t 900
in these deals. Suit was threatened by
the road, but after conferences the
whole matter was referred to Former
Judge z. c. Field, whose decision as
arbitrator was to be final. Judge Field
recently made his award, holding that
gross frauds had been perpetrated upon
the railroad company, and orderlsg the
refunding of S525,000.
Recently, it leaked out today, Thomas
and Kappes returned to the Golfers or
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 well as FetZer
Letter Is Evidence.
Fetzer's bill for an injunction in
q
Delano, president of the Wabash rail .
road and representative of that road
on the board of directors of the Chi
cago & Western Indiana. This letter
reads:
March /. 1907 (Confidential)
''Mr Z. Thomas. President and Gen
eral Manager c.. & w. ]. r. R.-Dear
Sir: l enclose a letter from MIR. c.
n. Travous. which explains itself. This
is written as a result Of a conference
which Mr.. Travous had with Judge
Henley at the time we sold our notes
to the Boston parties. 1 believe we
should, in quiet way, get the legisla-
ton which Judge Henley and our cOun-
sci concluded is desirable. 1t is a bad
thing TO have something of this kind
brought up by the bankers every time
we have to do any negotiating for the
sale of securities. 1t might give US
very serious trouble"
According to a statement dictated by
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