Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1912-10-11
RAILROAD PROMOTERS JAILED
Port Office Inspectors Arrest North
and South Railway Officials

and South Railway Officials
A large number Of Howard county
people have evidently been caught by
a clever promoter and will lose all the
money paid by them into what the
United States postoffice authorities de-
clare to be a swipdle.
H. Leon Miller, an attorney, who
purported to be the president of the
company was arrested III Kansas City
last Monday. Miller was arrested as
he entered Judge Pollock's court room
to answer a charge of contempt fol
failing to turn over the property of the
road to ]. A. Kimball, who had beer
appointed receiver by Judge Pollock or
application of the Brindley Construc'
tion company of New York, which ex.
pended SOS, 600 in making survey fol
Miller.
Three of his associates, John M.
Wiley, Fred Beckley and A. l. Beall
indicted by the federal grand jury or
the charge of using the United States
mails to defraud in connection with the
promotion of 4 transcontineHtal rail-
road, were unable to raise bail when
arrested and 30 they spent the night in
the Hennepin county Jail. They en-
tered pleas of not guilty when ar.
raigned in the United States district
court at Minneapolis on Monday Their
cases were continued until the April
term Of court and they were admitted
to bail, Wiley at $1,000 and Beckley
and Beall at 81, 500.
John NJ. Wiley. chief engineer and
general manager, was taken from q
south bound Great Western train at
New Hampton, Iowa, by Sheriff Rus
sell, while attempting to make his
escape.
Beall was arrested near Lawler, Ia,
and Beckley was taken into custody in
Cass county, MIMI, after Is mile
chase in automobiles.
Edmund Louis Delestry of the Del
estry Engineering company. st. Paul,
told Mr.. Dickey, U. S. District Attor-
ney, that he had knowledge that Wiley
had been in the promotion business y
for at least five yesrs. Mr.. Delestry
also stated that she had given Wiley
81, 600 two ysafs ago for stock in a
Mexican copper mine.
1t is alleged that the three men col
lected money from hundreds of farmers
and business men in Missouri, Iowa
and Minnesota. Commercial clubs in
various cities in these three states are
said to have ben attracted to the
scheme.
According to Inspector Simmons, the
North and south! Railroad associa-
tion," was incorporated in Arizona in
December, 1911, with capital stated at
81, 900, ,OOO The states of Missouri,
Iowa, Minnesota and the Dakotas
were flooded with literature telling of
its brilliant prospects. The company 8
first headquarters was at Herman,
Mo-, but it was subsequently moved to
Waterloo, Iowa. Offices fare also said
to have been opened in other cities, in.
cluding Minneapolis.
Mr.. Dickey says the plan was for
either Wiley or one of his associates to
approach farmer, tell him about the
projected road, unfold to him pictures
of its prospects and possibilities. and
finally to ask him to buy stock in the
company. 1t is also alleged that farm
ers were induced to buy, by the prom
Use that the road would run at the
point most likely to do them the most
service, if they bought stock in the
projected road.
Shares were sold lat $40 par value.
Local agents were appointed in Mis-
souri,. Iowa and Minnesota to "handle'
the sale of the stock. In every in.
stance it is said that the utmost &C.
crecy was required, on the assertion
that if the old established roads knew
about the North and South" road
they would use their influence to block
it. 1t is said that at least 500 persons
contributed toward the project, the
majority of them being from Missouri
and Iowa, but it is stated that not a
few were from Minnesota.
Everything is said to have gone
smoothly until about a month ago,
when complaints began to come into
the postal inspectors Office from per-
sons who had invested in the project
and who had began to suspect that
their investments were not all right.
The New Hampton Tribune says
surveyors have been at lwork for some
time in Chickasaw county and are now
located near Waucoma. The swindle
was brought about by subscribing for
stock, 20 per cent of which became
due at once, and 20 pee cent when the
survey was made. 40 per cent was
thus collected and of course the work
stopped. The trick worked in Canada
and Mexico but they stayed at the
game too long. Some $4,000 is sup
posed to have been secured from the
sale Of stock IN this county and north.
Wiley and his associates succeeded
in interesting a good many Howard