The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-04-18
RAILROAD NEWS.
Rail Loot on Illinois Central
Reaches the Millions. ;.
Graft Investigation Promises
Some Great Scandal.
OFFICIAL In NET.
Trouble May Mean Big Reaction
in Eastern Markets.
Other Items of General Interest
i'm Railroad World.

A graft scandal in railroad circles in
volving millions Of dollars secured sys-
tematically from various rail systems
has doomed up in connection with the
sweeping investigation which is being
conducted under orders of President j.
7. Harahan of the Illinois Central rail-
road. Car companies all over the
United States are concerned. Detectives
In the pay of the Illinois Central road
and directed by w. J. Burns, Charles
Trotter and other operators Of the
Burns & Sheridan National Detective
agency have been examining employees
and records of car equipment and sup
ply companies in Chicago and other
cities in an effort to secure evidence
which would support in court charges
of conspiracy to defraud the road.
It has been discovered that another
force of detectives from other agencies
had taken a hand in the investigation.
The explanation given out concerning
the second inquiry was that some of the
officials of the Illinois Central who are
hostile to the present regime have
started counter inquiry for the pur-
pose of starting more trouble.
Out Of the chaos and excitement
stirred up by the visit of detectives to
the various offices and manufacturing
plants of companies which had trans
actions with the Illinois Central rail-
road came some information showing
pursued.
Bills for Millions Held Up.
In the first place, it was discovered
that bills rendered the Illinois Central
by various companies for sums totaling
millions of dollars are being held up.
The companies have been notified that
their bills will not be paid until after
the investigation is ended
In order to force the various COM
panies to permit a thorough inquiry
int \ .%a wwr4A 10 &c
Central road for years past, in addition
to Withholding payment upon the bills.
notice has also been given through the
detectives and the roads officials that
suits to compel the repayment of
moneys paid by the road to the car
companies will be instituted and GRIM
inal prosecution brought as soon as
evidence warrants it.
Special efforts are being made to Sc
cure evidence to support claims that
certain railroad officials and employees
personally or through relatives ana
friends were financially interested in
the car com panies and that these per-
sons took part in manipulattons bene-
fetal to the car companies and detrl-
mental to the road. One of the
charges is that some men In the Illinois |
Central road were so swayed by their |
other interests that they gave out work |
panies, instead Of having the same done |
in the railroad conpany's shops.
The charge that there was a combf- |
nation to hold up prices and to act in |
concert for the purpose of special |
profits from the Illinois Central ana |
certain other railroads is declared TO |
have been among the small companies /
and not connecting the large corpora
tons.
Officials Of the American Car and |
Foundry company, when the investi |
gators called, threw open their books /
and records and declared that they had /
nothing to conceal and that their con-
Germ feared nothing. After inspecting
the ecords for several days and after |
questioning carefully many employees
and officers the investigators withdrew,
the officers that their con-
Germ was found to be all right
Among the companies which had
business dealings with the Illinois Cen
trail road and whose employees and, in
some instances, officials have been
questioned concerning work done for
and sales made to the Illinois Central
road, are the following:
The Pullman company.
Osterman Manufacturing company.
Osterman & Dolph.
Kellogg Car company of Kankakee,
III.
American Car and Equipment COM
1any of Chicago Heights.
Ryan Car company.
Memphis Car company of Memphis,
Tenn.
International Car company of New
Orleans.
American Car and Foundry company.
PLEAD WITH ROCK ISLAND.
,oxrns On Horizon. FairT1lrv Branch