New-York tribune., 1910-08-20
THREE ARRESTS FOR
IMMENSE |. c. FRAUDS
Frank B. Hartman, Charles l..
Ewing and ]. M. Taylor
Give $4,000 Bail.
RAWN ESCAPED BY DEATH
Would Have Been Arrested
with Others-Railroad Graft
Greater than Political
Brand. Says Official.

Chicago Aug. 19-Three former ex-
ecutive officers of the Illinois Central
Railroad Company were arrested to-day
on warrants in connection with the al
legged frauds by means of which the rail-
road lost. it is said. S1,JOO,000.
The men arrested are Frank B. Harrl-
man. formerly general manager of the
road: Charles L. Ewing. formerly man
ager Of lines north of the Ohio River
and John NJ Taylor, formerly general
storekeeper of the road.
The warrants, sworn to by President
r IT Harahan of the Illinois Central
Railroad. charge the three men win
conspiracy to cheat and defraud the
railroad by false pretences and with op-
Grating a confidence game Hartman
and Ewing were taken to the Harrison
etreet nolice station Their bonds of
s1O noO each were signed by a profess
sional bondsman.
The allegations in the graft case are
startling. The investigation began
,-ear ago It reached a crisis last spring,
when President Harahan began actions
70 recover sums said to aggregate more
than S1OON060 alleged to have been
+.La, from the road by car repair com
panies with the connivance of nigh ON
cials of the road. Hartman, Ewing,
Tavlor and many, others of less masn1-
+ude resigned their places. Much of the
money is said to have been repaid prl-
vately.
The name of Ira g. Rawn. who re-
signed a vice presidency in the Illinois
Centra1 road to become president of the
Nonon system. and who was found dead
recently at his home with a bullet wound
in his breast. was brought into the scan
dal. Murray Nelson. jr.. attorney for the
Illinois Central. said to-day that RaWn
death. which it is intimated was self
inflicted. headed off warrants which
u,orId have been issued for him.
Construction Frauds Also.
Private detectives, working under the
direction of President Harahan, are SAID
n have unearthed frauds other than
those connected with padded car repair
hills These are said to involve the
diverting of S1.O00OO0 or more from new
construction funds. The investigators
~ay +hev have procured several confes-
sions which will be used in their attempt
to ia stem guilt on culpabie persons
To-6sv's developments bring the name
of Ewing into the case for the first
time.
Il have never been approached by any
eng this
case" said Mr.. Hartman. Il am per
fectIy innocent of any and all charges
made against me. | will admit that L
have been awaiting some such action as
this in order to refute the charges I
am glad of the opportunity to clear my
name ! have always been true TO my
friends. and I want them to know. as
Will, be shown in court. that I was al
Uavs true to the Illinois Central
Harrjman's connection with une Illi-
nois Central covered a period of thirty
one wears. He began as civil engi-
neer's apprentice. served three years as
an assistant roadmaster. and arose
through the grades of construction, engi
neer trainmaster and division superin-
tendent to the general managership.
An official of the Illinois Central read
intimated tonight that other arrests
would follow:
I'VE will get the last man in this CON
sptracv. down to the fellow that drove
the spikes in the roadbed. If there be
any such. that had guilty knowledge OF
the scheme he said
The same officer announced that some
idea might be conveyed to the public of
the strength of the criminal cases that
have been worked up against the alleged
offenders by reason of the fact that the
road this week refused an offer of SiOo.-
900. in return for which the complaints
were to be dropped and no public ex-
posture of the alleged culprits made.
THE mass of evidence against these
men and the others who will be arrested
later is so great that it demonstrates that
political graft in It's palmiest conditions
pales into insgnifcance beside the hood
. = - Continued Bn fourth PAGE.