New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-30

Bank"
Photographs of $4,000 worth of checks,
signed by F. II. Niles. president of the
Blue Island Car and Equipment Company,
were then introduced by the prosecution
Goodrich identified the Endorsements on
them as having been made by him. Niles
went on the stand several days ago and
testified that payments for Hartmann were
made to Goodrich Most of the checks
were paid on December Is, 1863
$4,000 Check for Rawn.
The name of Ira G. Rawn. late president
Of the Monon Railroad and formerly vice
president of the Illinois Central, was again
brought into the proceedings when Good
rich testified that on December IS, 1909. he
wrote check for $4,000 to Ira G. Rawn-
This check was Cashed by Rawn on De
cen1ber 81 The $4,000 check, he said. was
in return for two 5000 checks which were
sent to Goodrich on December b. and were
signed by Niles.
Il never met Mr. Rawn except for a for
nal Introduction said Goodrich. II talked
with Mr. Hartman at his office, and he
asked me to send him checks from my
bank for the ones which | received for
him. On Mr.. Harrimans instructions. | did
the same for Mr.. Rawn. In every instance
I sent the checks by mail"
In connection with the formation of the
Memphis Car Repair Company, Ostermann
told how stock was issued, and to whom.
Two new names-those of H. H. McCourt.
general superintendent of the Illinois Cen
trail lines south of the Ohio River, and W.
S King. general superintendent OF the Yazoo
& Mississippi Valley Railroad Company
were mentioned by Ostermann.
Stock was issued in certificates Of 1s1
shares each in the Memphis Car Repair
Company" said Ostermann. This stock
was divided among Ira G. Ravn, F r.
Hartman. Joseph 3 Buker. W. s. King,
H H McCourt. William Renshaw, J. NJ.
Taylor and Secretary Ward of the Mem
phis company At the suggestion of Mr..
Buker, had all the stock made out in my
own name. I know that Rawn, Hartman
and Taylor got their shares. and suppose
the others did too"
The witness then went into a detailed
history of the organization of the Memphis
Car Repair Company. He testified that
Joseph Z. Ruker of the Illinois Central.
called upon him and said that there was
room for another car repair plant. They
then took up the subject of a possible site.
II was finally decided to build I'm South
Memphis Mr. Buker. H II. McCourt.
Y. S. King and himself then organized the
Memphis concern. the witness said. Later
on Ostermann said he was told to issue
stock TO Mr. Rawn and Mr. Hartman.
High Borus for Repairs.
Ostermann declared that car repair COM
panies paid certain Illinois Central officials
a bonus as high a SIS car for each one
sent to them for repairs and made pres
ents'' of varying size to all grades of
employees for vigilance in detecting and
reporting bad order cars. He declared
that the amount charged on each car by
the repair companies was regulated direct
" by the Illinois Central officials inter-
ested in the alleged grating.
we got orders at one time" said the
witness. mot TO let the charge a car run
higher than 1925. and later this was reduced
to s275. In many cases the cost of really
repairing q car would run higher. but we
had to make the average the amount
stated In trying to keep the average
down we adopted the plan of reporting
cars repaired that never had been re-
paired. Only cars that passed through the
switches ir our yards were so repaired.
AT one time order for the repairing
Of five hundred cars was received from the
Illinois Central. The cars were in such bad
shape that they could not be repaired for
S275 each, the price fixed by Taylor ]
called up Mr.. Taylor and told him The
next day Mr.. Buker came out to the plant
and told me that President Harahan had
received q bid of s275 from another concern
for this work, and that it must he done at
this figure
According to Ostermann. Buker said:
We've got our foot I'm IT, The old man.
meaning President Harahan. must not find
out anything. You go ahead and repair
this bunch of cars and we will see that YOU
get enough material from the Illinois Cen
trail shops at Burnside to make things
come out even"
I'VE did So concluded Ostermann. and
the matter was adjusted in this way"
"PEARL TRUST" IN JAPAN