Los Angeles herald., 1910-09-30
BARE SECRETS IN
CAR REPAIR CASE
Witness Tells of Big Checks Paid
|. C. Officials as Their
Share in Graft
NEW NAMES ARE INVOLVED
R. R. Employees Said to Have Had
Bonuses for Finding
Something to Fix
NEW NAMES ARE INVOLVED
CAssociated Presn)

CHICAGO, Sept. ga. c. Goodrich,
a self confessed gobetween, and Henry
C. Ostermann, former president of the
Ostermann Manufacturing company,
WED with each other before Municipal
Judge Bruggemeyer today in stripping
bare the secrets of the alleged combina-
tion that Is charged with swindling the
Illinois Central railroad by car repair
frauds.
Goodrich, like Ostermann, was placed
on the stand as a witness for the prose-
cution. He described in detail methods
that he said Illinois Central officials
used to conceal their identity as stock
holders in the Ostermann repair con-
cern.
IN testifying yesterday Ostermann
had said certain payments we're made
to railroad officials by checks through
Goodrich.
When placed on the stand today
Goodrich began his testimony at this
point.
'The checks were made out in my
name,' he said Crank 3. Hartman
had asked me some time previously II
/ would agree to let him have checks
made out in my name and accept GER
tain payments for him. / agreed. l do
not know what source the claims came
from, but received a number of them.
i KNOW, however, llldI AliCy WCAO iSouSA
by this company, of which have been
reading in the newspapers. I indorsed
them and placed them to my private
account In the Fort Dearborn National
bank"
RAWN AGAIN INVOLVED
The name of ira G. Rawn, late presi-
dent of the Monon railroad and former
vice president of the Illinois Central,
was again brought into the proceedings
when Goodrich testified that on Decem-
ber 1S, 1909, he wrote check for $4,000
to Ira G.. Rawn, which was cashed by
Rawn on December 21. The $4,000
check, he said, was in return for two
$4,000 checks sent to Goodrich on De-
cember 13 and signed by Niles.
Ostermann was recalled when Good
rich had concluded his testimony.
In connection with the formation of
the Memphis Car Repair company Os-
termann told how stock was Issued and
to whom.
New names, those of H. H. McCourt,
general superintendent of the Illinois
Central lines south of the Ohio river,
and w. S. King, general superintendent
of the Yazoo & Mississippi Valley rail-
road, were mentioned by Ostermann
in this connection.
Stock was issued in certificates OF 161
shares each In the Memphis Car Re-
pair company, Ostermann said.
Ostermann then said car repair COM
panies paid certain Illinois Central Of
ficials a bonus as high as $25 each car
for cars sent to them for repairs, and
made presents of varying size to all
grades of employees for vigilance in de-
tecting and reporting bad order cars.
He said the amount charged on each
car by the repair companies was reg
ulated directly by the Illinois Central
officials interested in the alleged graft
ing.
eve got orders at one time.' the witt
ness said, mot to let the charge per
car run higher than 1925, and later this
was reduced to $275. In many cases
the cost of repair would run higher,
but we had to make the average as
the amount stated. In trying to keep
the average down we adopted the plan
of reporting cars repaired that never
had been repaired. Only cars that
passed through the switches in our
yards were so reported"