Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-06-07
CONSPIRACY TO
LOOT RAILROADS
Alleged That Four Officials
Have Defrauded Illinois
Central.
THROUGH REPAIRING CARS
Turned Work Over to Private Com
panies at Big Figure and Were
Rewarded for 1t.


Chicago. June Tn a bill for &C.
counting filed by the Illinois Central
Railroad company in the circuit court
yesterday four former officials of the
company are charged with conspir-
acy to defraud whereby the company
lost over $1,000, 900 in connection with
car repair work. The men charged
with the crime are:
]. E. Buker, now vice president of
the Chicago Car Heating company and
formerly superintendent of the car de-
partment
William Renshaw, formerly super
intendent of motive power and ma
chinery.
.. S. Keith, former superintendent
of transportation.
]. NJ Taylor, former general store
keeper.
The car companies which were the,
alleged instruments whereby the fraud
was committed and which were, 1t is
charged, organized for the express
purpose of swindling the Illinois Cen
trail road, are:
The Blue Island Car and Equipment
company, to which an excess of $400,-
900 is alleged to have been paid as the
result of the conspiracy.
The American Car and Equipment
company, which secured 100000.
The Osterman Manufacturing com
pany. now the West Pullman Car COM
pany, which obtained not less than
$75O,OO0.
The Memphis Car company Of Mem
phis, to which an excess of 100000
was paid.
The International Car company OF
New Orleans, which obtained not less
than $4,000, making a total of ST.
900.
Sue for Accounting.
No steps have or will be taken by
the Illinois Central road officials to
prosecute the defendants criminally,
but it was stated that they stand ready
to give the facts to the states attorney
if called upon to do so. In connection
with the suits for accounting against
the former officials named, the COM
psny also filed accounting bills against
the American Car and Equipment COM
pany and against the Osterman
Manufacturing company, now the West
Pullman Car company. No suit was
begun against the Blue Island Car and
Equipment company, recently reorgan-
lied into the Blue Island Foundry and
Equipment company, by reason of the
fact that this company now has suit
hn
for over $4,000 balance due on car
repair work
In the case of the West Pullman
company, the bill asks for an injunc-
ton against the Central Trust COM
pany to prohibit it from paying any
of the $226,000 in cash and notes that
is held in trust for H. c. OsteTman,
former president of the Osterman
Manufacturing company, and also for
a receiver for this fund, as we'll as an
accounting from the West Pullman
company.
Details of Alleged Conspiracy.
Briefly, the averments in the bill
filed by the railroad company against
its former officers state the details of
the alleged conspiracy as follows:
That about June, 1906, these
officials entered into a conspiracy
to defraud the railroad company
out of large sums of money.
That they recommended that
the repairing of cars be discon-
tinued in. the railroad shops. and
that the contracts be given to car
repair companies.
That they entered into a con-
spiracy with the companies named,
whereby cars were sent to them
to be repaired, and bills for such
repairs were made out for exorbi-
tant amounts under the direction
of the railroad officials.
Delivered Material, Also,
That the conspirators arranged
to deliver to the repair companies
large quantities of paints. oils,
rails, ties, lumber. bolts, ETC.. for
which the railroad company never
received payment, and that these
materials were used in the repair
of cars and charged to the rail-
road company.
That the repair companies
worked system of robbing cars
that came to them of equipment,
which were used to repair other
cars, and that this equipment was
charged to the railroad company.
and also it was charged with
equipment used to replace that
which had been taken off its cars.
That the four railroad officials
received stock in the companies,
for which they paid nothing. and
that they received portion of the
money said to have been fraud
ulently obtained from the railroad
in the guise of dividends" on this
stock.