Evening Republican, Volume 14, Number 62, Rensselaer, Jasper County, 14 March 1910 — G. W. INFIELD IS IN BAD; STORY OF A BIG DEAL. [ARTICLE]

G. W. INFIELD IS IN BAD; STORY OF A BIG DEAL.

Railroad Promoter Defendant in Big Case Brought in The United States Circuit Court George W. Infield, promoter of the Lafayette to Chicago electric railroad, which is expected to pass through Rensselaer, has been defendant along with Owen L. Carr, of Rushville, in, a suit brought by Dorvil E. Brooks, of Decatur, 111., in the federal circuit court, in Indianapolis. Judgment in the sum of $15,000 and the return of certain property is asked. . A long story of modern trading methods precedes the suit, and they are here condensed as much as possible. Brooks had property equities in Chicago, Bloomington and Philo, 111... which he valued at $95,000. Several Chicago parties negotiated with Mr. Brooks to trade him the bonds to the value of $95,000 in the Rushville, Ind., Gas, Heat and Water Co. They got Brooks to Chicago and according to Brooks’ complaint, informed him that the Rushville company was a great concern, was in operation and had a monthly income of $2,000 and was paying big dividends on the stock. He said he had a relative in Rushville, a lawyer, named Owen Carr, to whom he .would write about the trade. Strangely, on going into the street in Chicago, they met Mr. Carr, who substantiated the statement about the value of the property and advised Brooks that it was a good thing and that he had better get in right away. Brooks decided not to take his relative’s word altogether for a deal involving $95,000 worth of property, and as he was not in the habit of closing deals of that size on such short notice, he informed the men with whom he had been talking that he would think it over. They gave him an option until Monday, saying that they had other deals on for the same property and that they could not possibly hold it open longer than that time. That was Sunday. It was planned that Brooks should go to Rushville on Sunday. He was to be accompanied by a real estate man at Decatur who was in on the deal, and also by one or two of the Chicago parties. Brooks decided on his way back to Decatur that he would drop the matter. He could think clearer by himself and he decided that the Chicago parties and his Indiana relatives might be trying to “hand him a bunch.” But he did not inform them that he had changed his mind—On Sunday morning, Sept. 4th, Jason Williams, of Chicago, and George W. Infield, of Rensselaer, and Mr. Brooks’ Decatur agent met at the depot in Decatur to start for Rushville, but Brooks did not put in an appearance. Here is what the Decatur, 111., Herald says of the deal: Likely Mr. Infield had appeared in the sessions that had been held in Chicago the previous day. One of these men was at the station in Decatur to meet Mr. Burks and Mr. Brooks and btd them good luck on their trip to Rushville. That is, the man may -1- -US * have been there for that purpose. Mr Burks was at the station, but no Mr. Brooks. The trip was off. < Williams and Infield got a room at the St. Nichlas hotel for the day. It was Sunday, Sept. 5, 1909. They sent out and got Mr. Brooks and Insisted on having him at the hotel ws their guest. Mr. Infield did a good share of the talking that day. He was good as a talker; in fact had been an exhorter in his earlier days. He had talent and had grown rich. They insisted that Mr. Brooks should be their guest. They talked the matter over fox hours, Mr. Infield using all his persuasive powers. They landed Dorvil E. Brooks in the "good thing” that day, for before night fell they had closed the trade with him. They took his property in Chicago, Bloomington anc Philo and gave him $95,000 in bonds of the Rushville Gas, Heat and Water Company. Things began to .happen in a hurry and Dorvil E. Brooks* suspicions were stirred. He deeded all the property to Thomas Higham, the alleged owner of the valuable bonds. The very day that Higham got the Brooks properties he transferred all of them. The Philo property was transferred by Higham to Wm. G. Wright, an em-

ploye in the U. 8. Brokerage company’s office in Decatur. Very soon C. A Burks sold this Philo property to a banker named O’Neill. Jhe rapidity of these turns shocked Mr. Brooks back into consciousness and suspicion. Mr. Burks throughout the transaction had represented Brooks as Mr. Brooks understood it; for this serfice, Mr. Burks had been handed one of the 81,000 Rushville Gas, Heat and Water Company bonds by Mr. Brooks. The play was too fast for Mr. Brooks and he went to a lawyer to assist him. Thereupon there was some real investigation to learn the value ant standing of the Rushville public utility company. The revelations stunned Walter Mills, one of Mr. Brooks attorneys. The great Rushville plant that dealt in gas, heat and water, accoring to the title list of the company, was found to consist of and only: Two small gas generators, one small boiler, one small condenser, one small scrubber, one station meter, one small steam pump. All the above items of property were housed in one small brick building oi one story, 25 feet square. Eight miles of iron mains, running from one to three inches in size. And the worst of it is that all of this property is of the vintage of 1878, thirty-two years ago. The entire property would not sell for 8500. And this gas plant is in a town that is supplied with natural gas. The plant had not been operated in six or seven years. The company that now owns the plant had operated it and never taken in a cent of either gross or net revenue. The books of the plant for the year 1900 were got at. The plant was operated that year and in the twelve months the gross revenue was 82,300. The expenses of operation were $2,240 leaving a balance of S6O to be applied to maintenance, dividends and interest. The plant winked out, driven entirely to the bad by natural gas. The company had no money on deposit in the bank to pay interest and as a matter of fact, Mr. Brooks’ interest has since been defaulted. However, this did not surprise him. Men troubled with honesty or equipped with only average ability would have junked that plant in 1900 and let it go off the world’s records. But they have superior talents over in Indiana, as the country has begun to note. They looked at that played out plant and decided they might yet turn a trick or two with it. For a time the plant was regarded as chips and whetstones and was traded around. It got into the hands of the Rushville Gas company and Owen L. Carr, of Rushville, became owner of all the capital stock. Mr. Carr is a man of sufficient talent to lead all the others in the list of defendants in the bill now filed in behall of Mr. Brooks.

On June 24, 1909, the Rushville Gas, Heat and Water company was organized. The plant was transferred tc Jason S. Williams and by him to the new company. The new company was organized by a father-in-law, a brother-in-law and an old friend named Carroll. On the 24th of last June, the Rushville Gas, Heat and Water company authorized a bond issue of SIOO,OOO, making the Farmers’ and Merchants Trust company, of Connersville, t trustee of the property for the bondholders. On July 15, last year, the company met and authorized another SIOO,OOO bond issue, and for this second issue of bonds, the Farmers’ Banking company, of Rushville, was made trustee. It was out of this second issue of bonds that they supplied Dorvll E. Biooks with the $95,000 worth he took. Doubtless if he had insisted they would have looked up the first issue and given him that, for they profess great friendship for him. That was what was done to Orvil E. Brooks by old acquaintances,, friends and a Member of the family. Now he has gone into a federal circuit court to learn if there is any relief in law. Only people who live in Indiana have been made defendants in this suit, for he couldn’t get into the federal court if he included any Illinois people as defendants. Mr. Brooks is asking a Judgment for $15,000 in money. He asks the return of the Bloomington property. This is now held in the name of John A. Johnson, of Indianapolis, alleged to be only a dummy. The equity in that propertyisworth $15,000. Five of the Chicago pieces of proper-

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