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CITYSCAPES


City's celebrated scandal: the coal-deal probe


By KEVIN LEININGER
from the archives of The News-Sentinel

City Clerk Charles Westerman was indicted recently by an Allen County Grand Jury on charges of mishandling $670 in parking ticket receipts, but his problems can't compare with the most celebrated scandal ever to touch city hall: the ``coal deal probe'' of 1950-1954.

Back on Nov. 11, 1950, the grand jury indicted six prominent men on charges stemming from its investigation into the city's coal purchasing procedures. The investigation had been spurred by a young first-term city council member named Paul ``Mike'' Burns.

Burns had alleged that the Martin Coal Co. was overcharging the city by $2 for every ton of coal purchased. The City Light generating plant on North Clinton street had consumed more than 82,500 tons of coal in 1949.

At the top of the indictment list was Mayor Henry Branning, a Democrat elected in 1947. Also indicted were police chief Lester Eisenhut, city councilman Charles Boyer, police capt. Gregor Klug, City Utilities purchasing agent Harold Battenberg and coal company president Eugene Martin.

Burns, a consistent Branning critic, was furnished documents that indicated the Martin Coal Co. was charging the city $5.50 a ton for coal but was paying the coal mine just $3.50 a ton. Burns figured the $2 overcharge was costing the city $500 a day.

Burns conceded politics played a considerable part in the coal probe. Martin had been awarded the coal contract after serving as chairman of the county Democratic Party during Branning's successful 1947 campaign. Burns, on the other hand, was given his information by Shelley Wagner, son of the man who had enjoyed the coal contract under Branning's predecessor, Republican Harry Baals.

Wagner knew that Burns, a young, ambitious politician, would aggressively press the case against Branning and the others.

Burns went before the city council with his information on Sept 13, 1950. Branning supporters on the council tried to block Burns' investigation by appointing themselves to the investigating committee, but to no avail. Front page headlines reported the grand jury indictments two months later.

Because of the immense publicity the case received in Fort Wayne, the coal investigation was venued to Columbia City and assigned to special judge Walter Brubaker.

But the case never went to trial. Brubaker finally ruled on May 1, 1954, that the major indictment issued by the grand jury - that Branning, Boyer, Battenberg and Martin had conspired to commit grand larceny - had been improperly issued. Brubaker's ruling was based on a state law which protected from prosecution public officials compelled to testify concerning public contracts.

With their case drastically weakened, prosecutors requested the remaining 51 indictments be dismissed. Brubaker agreed and the case was closed on May 1, 1954. As a result, the grand jury's contention that Martin made exorbitant profits of up to $4.65 a ton was never tested in court.

The scandal, though, had had an impact on city government. In 1951, Branning ran for reelection in the mayoral primary but was badly defeated by Burns, who had been thrust into the spotlight by the case. Burns was beaten in a close race by Republican Baals. Burns was finally elected mayor in 1960 and is a city council member today.

The city's need for coal ended in 1975 when the City Light generating plant was closed and leased to the Indiana & Michigan Electric Co.

As for Branning, he died on Nov. 3, 1970 - almost 20 years to the day after being indicted by the grand jury. Ironically, he was praised in death by Mayor Harold Zeis, who ordered flags on city-owned buildings flown at half-staff. Zeis had been county sheriff in 1950 and was the man who took custody of Branning and the others after they were indicted.

--May 22, 1982


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