Democratic Sentinel, Volume 21, Number 29, Rensselaer, Jasper County, 16 July 1897 — MUSGRAVEPARDONED [ARTICLE]

MUSGRAVEPARDONED

NOTED INSURANCE SWINDLER A FREE MAN. Clemency Extended Because He lain a Dying Condition—History of the Case Which Led to His Arrest and Conviction. Fet Free to Die. “Bob” Musgrave has been pardoned by Gov. Matthews that he may die outside prison walls, and the story of his audacious attempt to swindle insurance companies out of $35,000 a few years ago by the supposed loss of his life in a fire is being retold. His term would have expired in November, 1898, but at the request of some friends the Governor’s private secretary investigated his physical condition, and finding that he was dying fiom consumption, the Governor put into effect his policy of pardoning all convicts who are surely on the way to the grave. Musgrave believes that he may recover once out of prison, and in a letter to an old acquaintance in Terre Haute recently, he said: “Tell my friends that if I am to be gotten out at all it must be soon. This matter cannot be delayed until fall.” Musgrave had been in the real estate business in Terre Haute until 1890, when the accumulating evidence of his dealings, forging of mortgages and the like, caused him to take sudden leave, and for a year his whereabouts was not known, although the authorities were after him, as several indictments had been returned against him. Operates in Chicago. In the early part of 1891 he turned up in Chicago, having left Kansas City, where be had been in trouble in connection with his employment with a wholesale house in which a relative was a partner. In Chicago he set up as a broker and promoter. He started the report that he represented an English syndicate with capital of several million pounds. He received letters addressed to T. B. Barnum, and after a while the acquaintances formed in the office building became suspicions of him. He became acquainted with a woman known as Kate Burton, but whose right name was McLaughlin, and he spent considerable money on her. Then as he began to run out of his credit he planned the insurance swindle. He took out seven policies, in all, for $35,000 on his life, some of the regular old line insurance and some in accident companies. Two of these he made payable to the Burton woman. He notified her of what he had done, and when he took leave of her in August, 1891, he told her that when she heard of his death to collect the money on the two policies and then wait to hear from him. The other policies were made payable to his mother and sister, whom he had taken to Chicago from Terre Haute.

Plot Is Hatched. Charles Trout of Terre Haute was a young man who believed Musgrave was the Napoleon of swindlers and his admiration for him was great. He would do Musgrave’s bidding, whatever it might be. Musgrave had let him into the scheme, and one night Trout met him at a station five miles north of the city. They made their way across fields to an abandoned log cabin on the bank of the Wabash River. In a satchel carried by Musgrave was a human skeleton, which he had bought from a St. Louis firm. The next day was Sunday, and Trout quietly gave the tjp to some of Musgrave’s former acquaintances in Terre Haute that be was in hiding at the cabin and would like to see them. Among these was Capt. Ross, now Mayor, and who was then in the real estate business. These went to the cubin and talked with Musgrave. Of course the purpose was to establish his presence in the cabin, which was to be burned that night, leaving the St. Louis skeleton to represent him. In the early part of the night neighboring farmers saw the fiames of the burning cabin, but did not go to it until daylight. Trout was there early, too, and he industriously circulated the report that Musgrave had been burned to death. The coroner took out the bones of the skeleton, and the police made a search of the ashes. They found Musgrave's K. of P. charm.

Unearthed by Detectives. The police gave it out that it was a case of suicide, and the matter was about to be dropped when detectives employed by the insurance companies put in an appearance. The knowledge that there was much insurance on his life, together with his known preference to obtain money by doubtful methods, raised the suspicion of a swindle in the cabin fire. One of the Terre Haute papers, which had taken no stock in the local police’s suicide theory, pointed out that if the charm could have gone through the fire some of the buttons on the clothing, his keys or the metal on his satchel ought to be found. The police made a second search, but found none of these things. It seems that Musgrave watched the cabin burn, and when the fire was nearly out he threw into it his K. of P. charm. He had boarded a midnight train on the Chicago and Eastern Illinois Road and returned to Chicago. He kept in hiding there, dyed his hair, which was red, and grew a beard. Located in St. Pan!. William Markle, who had married Musgrave’s sister, did not believe he was dead, and going to Trout forced that young man to tell him where he was. It bo happened that on Markle’s arrival in Chicago he saw Musgrave, and knew him despite his dyed hair. Markle wanted S2OO borrowed money, and threatened to tell people in Terre Haute that he had seen his brother-in-law. Musgrave could not give the money, but taking alarm left for St. Paul. Then he wrote to Kate Burton, who already had been seen by the detective. She showed them the letter and they arrested Musgrave in St. Paul. The trial was long drawn out, but in the end he was sentenced to the penitentiary for ten years. Trout, who had been indicted ns a fellow conspirator, was not prosecuted because after the case began he was of some service to the prosecution, and furthermore been use it was thought he was only a wonk tool in the hands of the swindler. Musgrave was born in Leeds, England. His father owned considerable farming land near Terre Haute and in Kansas, and it is understood that after the father's death the son got possession of it and lost it in land denis. He was an insignificantlooking person. Small of stature, small eyes with red rims and a protruding nose. It is supposed he will return to the home of his mother north of Terre Haute, on a farm.