Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1910-05-05
CHICAGO HAS A
S525,0OO SCANDAL
STATES ATTORNEY wAYMAN
ORDERS GRAND JURY TO
START PROBE.
RAILROADS, LEGISLATURE AND
COMMON COUNCIL INVOLVED
IN BRIDE CHARGES.

Chicago, May 3.-An investiga
ton of bribery scandal involving
the Chicago & Western Indiana rail
road, the Illinois legislature as com
posed two years ago, the city coun
Gil of Chicago, and sums of money
which may run to between 100000
and treble that amount, was ordered
by States Attorney Wayman here
yesterday. Mr. Wayman ordered the
empaneling of a special grand jury
His action is based on allegations
made by John G. Fetzer, who was sued
yesterday by the Chicago & Western
which the railroad AYERS Fetzer de
| frauded the company out of in real
estate transactions. Fetzer has asked
an injunction to enjoin the prosecu
ton, alleging that parts of the mon
| ely which the road seeks to recover
went to influence legislation both at
Springfield and Chicago
About three years ago Fetzer, with
Benjamin Thomas, then president OF
the Western Indiana, and Charles r.
Kappes, real estate expert, set about
to acquire the right-of-way into this
city. The road alleges that Fetzer
acted as its agent, while Fetzer de-
clares he simply was Spectator
who purchased the land and sold il
ia the company.
In February last charges were made
that Fetzer, Thomas and Kappes had
defrauded the company out of $3.50,
900 in these deals. A suit was threat.
encd by the road, but later the mat
ter, under agreement, vas referred to
former Judge e. C. Field, as arbi
traitor
Fields award held that gross
fraud had been perpetrated upon the
railroad, and ordered the refunding
of $525,0O0.
Recently, it leaked out yesterday
Thomas and Kappes returned to the
company a total Of $4,000, stating
That this sum exhausted their indi
vidual resources Fetzer refused to
abide by the award, and yesterday s
suit was brought against him.
The suit also names Thomas and
Kappes.
Fetzer's bill for an injunction In
cluded letter from F. A. Delano,
president of the Wabash railroad. and
representative of that road on the
board of directors of the Western In
diana. The letter is dated March l.
1907, and is marked confidential and
addressed to Thomas. 1t reads:
Il include letter from C. N Trav-
Gus, which explains itself. This is
written as a result of a conference
which Travous had with Judge Hen.
ley at the time we sold our notes to
Boston parties. | believe we should,
in quiet way, get the legislation
which Judge Henley and our counsel
concluded is desirable. It is a bad
thing to have something of this kind
brought up by bankers every time
we have to do any negotiating. for
the sale of securities 1t might give
us very serious trouble We had a
case of this kind on the Burlington
where a rather INSCRIPTIONS lawyer
got hold Of technicality of this kind
and gave us great deal of trouble
Mr.. Delano said yesterday that the
meaning of the letter would stand out
in innOcuous innocence had Fetzer
apprehended the letter of Travous.
He said that the Western Indiana
and two smaller roads were consoli,
dated thirty years ago and the con.
solidation contained technical flaw
according to some lawyers, including
Travous Under the Illinois law the
two roads might consolidate, but not
three. Two might consolidate and
take in third The Western Indi
ana was formed in the former way
and upon the occasion of the sale OF
| $S,000,000 in the notes of the road
three years ago Travous pointed out
the alleged flaw. He says it is plain
that if some INSCRIPTIONS lawyer
discovered the situation ne might
make trouble, particularly for limo
cent bondholders. He says that in
all the road put out $46,000,000 il
bonds which might be involved
Hence the road wished for the inval
| idation of the act and wanted in q
quiet" way to avoid perturbing bond
holders who might exaggerate tech
nicality.
He says that the only opposition to
the bill (Number IT'D was in connec
ton with story which came out
that the bill was introduced to vail
date certain financial operations Of
the Chicago & Alton. The bill had
then gone on to the second reading
He says he personally explained te
several members of the legislature
the exact nature of the bill and thai
Mr. Thomas personally stated to Nor
ton D. Hull, member of the legisla
ture, that no money was being used
or would be used to bring about the
passage of the act
MI. Delano says the story Of !
slush fund was gotten up BY Fetzer o.
his counsel. to direct attention from
the real issue. He says the road was
robbed and demands restitution. He
declares that it is no adequate de
Tense to say that this money, though
stolen. was used for the benefit Of thu