The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-10-08
MILLER Is CAUGHT
Winnipeg, SaIina & Gulf Bulb
BILE Burst at Last.
President Arrested for Using
Mails to Defraud.

SSAAo W OCAA e1NANAe
Kansas City, Oct. ST. Leone
| Miller, an attorney, was arrested by a
United States marshal here on a
charge of using the mails to defraud
in connection with the promotion of
| the Winnipeg, Sa1ina & Gulf railroad.
Miller is president of the railway
company. Before Judge Pollock in
the federal court he pleaded mot
guilty and was held under SIS, 900
bond.
Miller was arrested as he entered
Judge Pollocks court room to answer
charge of contempt for failing to
turn over the property of the road to
]. A. Kimball, who had been appoint
ed received by Judge Pollock on ap-
plication of the Brendley Construc-
ton company of New York, which
expended $4,000 in making survey
for Miller.
Postoffice inspectors charge Miller,
in promoting the road, knowingly de-
ceiVed cities and individuals through
out Kansas.
According to the federal authori-
ties, Miller would appear before the
commercial organizations of small
towns and state that he was presi-
dent of the great system of proposed
railroads to connect Winnipeg, Can
ada, with the Gulf of Mexico. He
would show maps that displayed a
direct trunk line from that city to
one or more of the principal gulf
points and promise the town if its
business men would raise sufficient
funds he would see that the place was
represented on the board of directors
and that terminals were located there.
M. H. Potter, banker, and president of
the Turon (Kan.) Commercial club,
furnished letters which resulted in the
arrest These letters stated that the
road had $29,0OO,0OO paid up capital
in banks in Paris.
j. McCabe Moore, assistant district
attorney, said the government would
show that the road never had a dol
lar in the Paris bank, that many cities
had been "squeezed'' and that the Of
flee furniture of the general Offices
of the road in Salina, Kan, was the
only property of the vast system
Miller claimed he was directing
Miller admitted tonight that the
Winnipeg, Salina & Gulf railroad had
no right-of-way and no track, but
maintained that it was backed by
large hnanciers in Europe and that
he was merely their agent He de-
spiracy-
Arrests in Minneapolis.
Minneapolis, Mimi, Oct. S.-With
bail fixed at $4,000 for the first and
$4,000 each for the other two, John
M. Wiley. Fred Beckley and A I.
Beall, indicted by a federal grand
jury on the charge of using the mails
to defraud. tonight are in the Henne-
pin county Jail. All three appeared
before Federal Judge Page Morris late
today and entered pleas of not guilty,
their cases being continued until the
April term of court.
Wiley, who, it is said, was leader in
organizing the North and South
Railroad association" by means of
which farmers of Minnesota, Iowa and
n Il
sands of dollars, was arrested at New
Hampton, Ia: Bea1 near Lawlor, Ia,
and Beckley at Ensel, Case county,
Minnesota. Wiley is said to have
three months; Beclzley to have come
from Osawatomie, Kan, and Beal from
Sigourney, Ia.
According to Assistant United States
District Attorney J. M. Dickey, the
plans of the men to build a railway
leans shifted from time to time, ac-
cording to the Willingness or unwill-
ingness of various localities to pur-
chase stock. For some time, acting
that the men were using
the mails for fraudulent purposes, R.
d. Simmons, chief postal inspector,
said the government has been tracing
the men.
Shares, 1t is said, were sold at $40
par value, local agents being appointed
in Minnesota, Iowa and Missouri to
handle" the sale of stock. Accord
ing to officials, in every instance, ut
most secrecy was enjoined, on the as
sertion that if established railways
knew about the North & South they
would use their influence to block the
ut is legitimate enterprise in
which we are engaged said Mr..
Wiley today. 1--WE have planned a
road from Winnipeg to the gulf. No,
we have not the right of way, but we
expect to get it. The North & South |
Railroad association was incorporated
in Phoenix, Ariz, about two years
ago. Its capital was $1,00o,00O. At |
we increased it to $2,500,000. |
If they will let US alone we will build |
the road"