displayed decades previous by one John B. Cabray.
The first story in the file was dated Sept. 24, 1909. Like all the others, it bore a Council Bluffs, Iowa, dateline and the byline of Richard Lloyd-Brown, who was identified as staff reporter. Lloyd-Brown wrote:
DES MOINES, Iowa-John B. Cabray and eighty-four alleged associates were indicted by a federal grand jury here today in a case that is believed to involve one of the most gigantic swindles in the police annals of the country.
The indictments were for conspiring to defraud by illegal use of the mails, to wit, persuading people to send money through the postal system, money that was supposed to be bet on what Cabray and his far-flung ring of accomplices promised would be a “fixed” horse race, one with an outcome Cabray claimed had been determined in advance.
Unfortunately for the naive investors, Cabray arranged so that the actual outcome of the fix would be for all of them to lose their money because of an unexpected development leading to an “upset.”
When those duped began to communicate with each other in the days and weeks after the race, and after Cabray and his ring had gone to ground, the fraud victims went to law enforcement officials with their complaints. None of the money sent to Cabray to be “bet” has been recovered.
Enticed into this scheme by Cabray and his slick-talking confidence men were prominent businessmen and civic leaders all over the country. Victims in eighteen states, the territory of Alaska, and the Dominion of Canada are named, indicating the wide range of territories over which Cabray and his associates are alleged to have plied their vocation.
Although specific amounts are not mentioned in the indictment, the amounts lost by the alleged victims reportedly exceed one million dollars. The sums lost by individuals range from $1,500 to $30,000, the latter amount having been placed on the race by a Missouri bank owner named C. D. Arnett.
Harvey Rexroth placed the file of clippings down on his desk for a moment, shifted his glasses to his forehead, and began pondering these facts from eight decades ago. After a minute or two, he said aloud, “My God! A million dollars in 1909…what would that be worth today?”
Senzell, who had been goggle-eyed for the past few minutes as Deirdre skated through her paces wearing nothing but a serious expression, came to attention at the question. He’d done his homework. “In the neighborhood of thiry million, Mr. Rexroth.”
Rexroth shook his head admiringly as he considered the scope of Cabray’s larceny. “What a nice neighborhood!” he said. He then resumed reading from the file.
Cabray is in custody here, along with three of his associates: Harlan Kornkven, James Draeger, and Stafford Appleby. The names of the other eighty-one people indicted were not made public. It was stated, however, that the list includes many persons known in the criminal annals in all parts of the country, and that nearly every such name is followed by from one to four aliases.
Each of these alleged confederates apparently had a coded number by which they were referred to in Cabray’s complicated file of records, recovered by U.S. Marshall Marcus Gordon from Cabray’s temporary headquarters in Altoona, Iowa.
It is expected that the trials will begin in Des Moines during the November term of court. Patrick Rafferty, special assistant to the Attorney General of the United States, at the insistence of the Department of Justice, is taking part in the prosecution and will doubtless have entire charge of the case when it comes to trial.
That concluded Richard Lloyd-Brown’s first report. Examining it more closely, Rexroth said, “Senzell, where’s the rest of this? Part of this last page has been torn off. Goddamit, man, I want to know what
Senzell ventured a small, nervous smile. He was beginning to sense that he had the boss hooked on doing this series.
“The bottom part of Brown’s first story is missing, Mr. Rexroth,” Senzell said, “but keep on reading. Not all of Brown’s coverage was retained for the file. Or else parts of it were lost, or stolen, over the years. But the sequence is solid enough to paint the picture. It all becomes clear-how Cabray did it.”
Senzell sat back in his chair, keeping one eye on the circling Deirdre, the other on his engrossed employer.
DES MOINES, Iowa-As the date draws near for trial of people accused in one of the most gigantic and sensational frauds in the nation’s recent history, more details have emerged regarding the case.
The million-dollar swindle of numerous prominent citizens, allegedly masterminded by John B. Cabray, was spread over at least eighteen states.
Cabray and his associates are alleged to have used as bases of operation such towns as Council Bluffs, Burlington and Davenport, Iowa; St. Louis, Little Rock, Seattle, Denver and New Orleans, to which sites many victims were either taken by Cabray’s numerous “steerers” to deliver their betting money, or to which places they were instructed to mail their funds.
All were assured that their promised “profits” could either be picked up in those towns, or would be mailed to them if they so chose. No profits, of course, were ever delivered to the duped investors in this so-called “fixed” race that took place at a track in the eastern part of the country.
Included in the court documents are copies of many sensational letters alleged to have been exchanged between Cabray and his associates, missives that refer to alleged “deals” and specify various sums of money as having changed hands as the result of the operations of those mentioned in the indictment.
One of these letters is dated from a New York City hotel and invites “Friend John,” who, it is alleged, is Cabray himself, to go to New York, declaring “I have a town right across the river in New Jersey, a swell track, and absolute protection. The sheriff and prosecutor and police will be absolutely right on the job for us during our working hours.”
In a letter written four days later, the same man informs “Friend John” that the race “fixing” can be done “for $750, which will cover everything-that is, the sheriff, his brother-in-law the police chief, and the prosecuting attorney.”
Rexroth leapt from his chair. “Seven hundred and fifty dollars!” Rexroth shouted. “This man Cabray was a genius!” With a thump of his fist on the desk, Rexroth said, “Senzell, now
As the dog Winston began to snore, Rexroth plunked himself back down in his chair and resumed reading.
DES MOINES, Iowa-The eagerness of criminal mastermind John C. Cabray’s victims became evident in federal court here Monday when some of their letters were read into the record. This was over the objections of Cabray’s attorney, Charles McStone of Chicago, objections denied by presiding Judge George H. Stevens.
A letter from Moline, Ill., signed by Oscar Farley, said “am inclosing $3,000 to apply to our deal, pending. I am looking forward to a fine, and prompt, result and return.”
Another letter, this one from Eugene S. Hunter of Antigo, Wisc., said: “I have made my check on the bank here for $7,500. My father-in-law is the president of the bank, to which proceeds may be forwarded. We are looking forward to their arrival.”
Rexroth flipped through a few more reports from Richard Lloyd-Brown before he found the one he was seeking. Brow furrowed, jaw clenched, he read it through twice. Then he threw his head back and erupted in laughter, a cascade of sound that startled Deirdre, Senzell and the dozing Winston.
Reaching for the intercom on his desk, Rexroth ordered champagne. Next, he buzzed for his executive secretary. When Stoner had emerged from his office, nodded at Senzell, and taken a chair, Rexroth slid most of the clippings across the desk to him. Stoner began reading. Rexroth poured champagne for himself as Stoner perused the material. After several minutes, Stoner looked up, a puzzled look on his face.
“I grasp the situation,” Stoner said, “but only up to a point. A sharp con man puts together a dishonest scheme to clip some of the nation’s greediest burghers. You could call it the Rape of the Rotarians, except I’m not sure the Rotary Club existed back then.”
“Or, Clipping the Kiwanians,” Rexroth said with another booming laugh. “Mauling the Masons in their pocketbooks. Eviscerating the Elks. Oh, yes, W. C. Fields had it right, you can’t cheat an honest man. But as Cabray knew, that left plenty of material to work with. He knew there were suckers mooning in pools all over the country, primed and ready to make what they thought was a dishonest fortune.
