08/31/2026
It was exciting to find this photo of a courtroom the third Delaware County courthouse in the Mike Mavis collection. You don’t find many interior photos of that building, especially of a courtroom.
When I turned the photo over, there was this caption “Triple Slaying Witness Testifies.” I had to find out about this. What follows is a tale of gambling and drinking, a shootout, escape, capture, the trial, the state police, the FBI, and Indiana’s governor. The town of Bedford, Indiana also plays into the story.
The story began in October 1949 with two young men from Bedford, Indiana. One report noted that Donald Dalton and George Gratzer left Bedford on Monday, October 11, 1949 to look for employment in Columbus, Indiana, but, according to Gratzer, he and Dalton had “… been looking for a place to knock off in eastern Indiana and Ohio since last Monday.” They found that place in the New Deal Cigar Store in Muncie.
Dalton, age 29, was well known in Bedford as a gambler who had had several run-ins with the law, including a recently dismissed charge of assault and battery with intent to kill. Gratzer, age 27, did not have a police record.
The initial report noted that, sometime after midnight on Thursday, October 13, Dalton and Gratzer entered the New Deal Cigar Store located at 604 South Walnut Street. Card games were in progress in the back room. By 1:20 a.m. Theodore Raines and Dewey Wills were dead, cigar store owner Ralph Frazier was dying, and at least three more men, including George Gratzer, were wounded.
Ultimately, it was determined that seven men were injured. It’s possible that at least one other man was wounded. According to a woman who witnessed the chaos, the number “… doesn’t count the old man whose hand I bandaged with a towel outside.” When asked what happened to him, the woman said that he just disappeared.
Within minutes after the shooting stopped, police officers and sheriff deputies swarmed the store, and ambulances arrived. It was estimated that 75 to 100 spectators gathered inside the cigar store and on the sidewalk outside.
Cigar store patron W. H. “Peedad” McKissack gave his account of the shooting. He said “I was up by the counter a little after 1 o’clock. The first shooting, I saw a guy come in the door and he waved his gun. The first I heard Ralph Frazier say, he said, ‘Everybody be careful.’” The man said, ‘Do what I tell you and nobody will get hurt.’” Then the gunman started shooting. McKissack ducked behind a counter and managed to avoid the bullets. In the next day’s newspaper, it was reported that Gratzer pulled a gun and store owner Ralph Frazier tried to take it away from him. In the struggle, he was shot.
Early Thursday morning, Police Chief Harry Nelson announced that three gunmen had been apprehended at the corner of 12th and Grant Streets. George Gratzer, bleeding from a wound in his side, confessed his guilt. Gratzer had been shot by his partner Donald Dalton, probably accidentally. Dalton had apparently driven to this corner then abandoned his car and his partner.
In the cigar store, an unidentified witness said, “The poker table was there against the north wall in back. When the shooting started, I tried to duck out of the way…. When it was over, the ambulances arrived.… I started to move it (the table) and found Ted Raines on the floor under it …. I think he was dead when I found him.”
Three bullet holes were found in one wall, although it was determined that one of the holes was a leftover from a previous shooting. Several more bullets pierced the paneling at the front of the room, and another grazed the swinging door between the store and the backroom. Apparently, one of the wounded men hid behind the pinball machine as a large pool of blood was found there. Chairs were kicked over, bottles were scattered throughout the room, and cigarette smoke hung in the air.
One of the wounded was just in the wrong place at the wrong time. A man from Cincinnati who remained anonymous said that he had just left a coffee shop on Seymour Street and was walking past the cigar store when the shooting started. He felt a sharp pain in the side, dropped to the ground and started rolling. The police briefly suspected that he might be an accomplice, but he was soon exonerated.
Another man slept through the whole episode. The bleary-eyed man told the police, “I slept right through it….” He woke up when the gunmen were going out the door. “Hey! I said that you can’t do that in here.” After that, he went back to sleep.
In the next few days, some details changed and new ones came to light as the investigation continued. George Gratzer was indeed accidentally shot by his partner. When he ran out of the cigar store, he jumped into Dalton’s car, took off, and drove for about 1 ½ miles until he collapsed. When found by the police, he was laying in a pool of his own blood. A 32-caliber gun and an almost empty half-pint bottle of whiskey were found in the car. The gun had been fired at least four times.
There wasn’t a third gunman as reported earlier, and Dalton was nowhere to be found after the shooting. According to early reports, he slipped away after leaving the cigar store, eventually stealing a car. As the manhunt was on for Dalton, Prosecutor Guy Ogle filed manslaughter charges against him for the shooting of Theodore Raines and Dewey Wills. No charges were filed yet for George Gratzer. Ralph Frazier died Saturday morning bringing on the possibility of more charges, including murder. The FBI were not involved yet but were known to be watching the progress of the case. The Bureau did become involved when it was determined that Dalton had crossed state lines. The hunt for Dalton spread beyond Indiana borders to Chicago and Louisville.
While the hunt was on for Dalton, it was noted in Friday’s Evening Press that instead of a simple stick up, the shooting was a result of a “gambling revenge act” and that “Muncie’s long and troubled vice situation came into the open again today.” Rumors swirled that several Muncie ministers had contacted Governor Henry Schricker asking him to send state police in to clean up the gambling dens. The governor denied that he had been contacted and said that he would await developments. It was reported, however, that all forms of gambling had come to a halt in Muncie’s cigar stores, taverns, and pool halls.
An editorial in the Saturday, October 15, 1949 Evening Press declared that “Muncie can no longer tolerate its indifference to the law.” There was no reason, it was said, that the cigar shop should have been open at that time of the night, nor why a card game should have been tolerated at any time of the day. The police were blamed for laxness and there was concern that the shooting would provide another blot on Muncie’s reputation. Muncie police took the matter into their own hands. On Friday, October 14, 1949, city detective Ernest Holaday visited all of the cigar stores where cards were played and tip books were sold. That evening the tip books had all disappeared and the gambling rooms were empty.
That didn’t last long. By November 18, 1949, the backroom of the New Deal Cigar Store was reopened for gambling. In fact, all of the backrooms were open again. The report that gambling had resumed led to another newspaper editorial, which asked if more men had to die before the police cracked down on gambling.
Donald Dalton was finally located at Smokey’s tavern just outside of San Antonio, Texas on Wednesday, October 26, 1949. He had $3 in his pockets and was unarmed and offered no resistance to the four FBI agents who arrested him. Dalton was arraigned on a fugitive warrant and jailed in San Antonio. Governor Schricker signed a requisition for an extradition warrant, and several law enforcement officers were dispatched to San Antonio to pick up Dalton and return him to Muncie.
Even though it was reported after the shooting that Dalton had stolen a car, he said that he left Muncie on foot and hitchhiked and rode freight trains to San Antonio. Apparently, he had friends there who he thought could help him. Dalton said that he threw his gun into the river at Springfield, Missouri. He also gave a statement to police in San Antonio that differed substantially from Gratzer’s version of the shooting.
When notified that Dalton had been captured, Gratzer said, “I never thought they’d take him alive.” Once Dalton was back in Muncie, he and Gratzer were sent to the reformatory in Pendleton to await trial. An editorial in the October 27, 1949 issue of the Muncie Star lauded the Muncie police and the FBI for Dalton’s capture.
Dalton and Gratzer were charged with murder in perpetuation of a robbery and murder in the first degree. The state sought the death penalty for both defendants. George Gratzer was represented by Muncie attorney Van Ogle and Bedford attorney Robert Melvin, and Donald Dalton was represented by Muncie attorney Clarence Benadum and Indianapolis attorney Charles Lewis. The prosecutor was Guy Ogle, brother of defense attorney Van Ogle. The presiding judge was Joseph H. Davis.
The trial began on Monday, February 13, 1950 with jury selection and a motion for dismissal by Dalton’s attorney based on a plea of self-defense. Judge Davis denied the motion without comment. Testimony began as soon as the jury of twelve men was sworn in.
The first witness called by the state was Orville Johnson, a draftsman in the city engineer’s office. He identified the chart in the courtroom photo as the one he made at the scene of the crime. Dozens of witnesses testified before the case was sent to the jury. After 29 hours of deliberation, the jury announced the verdict on March 9, 1950. Donald Dalton was found guilty on all counts, and the jury recommended life imprisonment. George Gratzer was found not guilty. Dalton’s attorney, Clarence Benadum, said “I’m certainly surprised that the jury would acquit one and convict the other when all the evidence showed both men to be innocent.” An appeals court threw out Dalton’s murder conviction. He then pleaded guilty to manslaughter and was sentenced to 2 to 21 years at Pendleton Reformatory. He was paroled on October 8, 1955, not quite six years after the shooting.
I’ll end with a quote from one of the witnesses who was nearby and saw Dalton and Gratzer back out of the store with their guns in hand. He said, “for a while I thought I’d been lifted out of Muncie to Dodge City.” Apt, I think.
Information in this story came from contemporary Muncie newspaper accounts.