The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-09-29
OSTERMANN TELLS OF GRAFT
HFID or CAR 90. TAXES STAND
~ HLINOIS CENTRAL CASE.
Describes Transfers Of Repair Concerns
stock Ia OnlcIAIS Of the Illinois Cen
trail Railroad. Including RaWn. Rem
shaw. BukcT Hartman aud Others.

CHICAGO. Sept. 2s-Hsnry c. Oster-
mann, former head Of the OstermRnn
Manufacturing Company. alleged by the
prosecution 70 have taken a prominent
part IN the car repair swlndle by which
the Illinois Central Railroad lost over
81 OOO 600 created surprise in Judge
Bruggcmeyer's court this afternoon when
he appeared and was sworn "a a witness
IA the hearing % the Illinois Central
graft charges against Frank X. HRrri-
man. John VI. Taylor and Charles l..
! Ewing
II WAS announced simultaneously with
his appearance that he would give testi-
| mouv In favor of the railroad against
/ MS alleged former associates The theory
Is that he has been promised immunity
! II he will explain the inner workings OF
IN" alleged conspiracy.
/ O-'armann sand that Ira O. Rawn.
| later vIce-pr--iient of the Illinois Cen
! tral Railroad. beclu" purchaser Of
/ stoCN ia the Osternanu Manufacturing
] Company To- the extent of $50 shares
] IN" shares. o." said. were transferred 20
Nir Rawn through Joseph r Buker.
Ostcruaun told how he came - Chi
caEo m lssG and aft.rworking asa frei ght-
man and conductor he finally became a
car inspector At that time ne invented
a patent gra IN door. and IN March 1905
the O-tsrmann Nanufaotu Company
was incorporated - manufacture 10
and place ~ on tn" market. Witness
said that only tiffy-on cars Of the Illinois
Central Railroad were ever equipped
with his patent doors and that the com
panv soon branch"d out into more pre-
tPnttoua work OF car n. palrinR
Did You give any stock OF this COM
panv 10 the officials u the Illinois Central
Railroads- asked Walter L. Fisher.
sent a certificate OF i.0OO shares TO
Mr. Taylor IN june. 1919. said Ostsrma mn,
referring 10 J VI Taylor. one of the de-
PENDANTS
Taylor az that time was general store
keeper and with Joseph r. Buker and
william Rsushaw had passsh on the
contract by which the railroad bought
IN" iiity ono car doors
other officials uf the Illinois Central
Railroad. he declared. hold stock IN the
OsterfnHnn Manufacturing Company A.
follows William k-nshaw, l. 500 shares,
Joseph T.. BuRer. go shares. Frank u.
Hartman 2tsi shares
la addition 70 ths~-.. holdings Walter l.
; i-her pTudVV,-i stock certificates for
3 80 shares made ONT to O-terTnann HIM
self IN amounts ranging from LOO TO 1000
shares each and tndorsed by him in blank.
The Inference was that this stock was
given away to individuals whose friend
ship was desired by the company. Oster- |
mann said that out - his 20 30 shares he
had ~ $50 left after his various donations !
The secret IT how the stock certificates I
came INTO possession If the prosecution |
and made DoSzihle the disclosure OF the |
iu'4-r organization Of the company came |
ont during the examination Attorney
Walter l.. Fisher said that they were /
part 30 s'fpsperS fopud'by. the receiver 7
Whn Wa Recently appointed for the com /
panv.
Hartman received certificates on Octo- ,
her e. 1910. and March - 1907. for az .
-lHr,-S each
Here ~ one 20 Mildred Hartman for
iUp shares on January -. said MIR Fisher
nat was mad" uut at m" request az .
Mr. Hartman explained Ostermann
And one - = u Hartman for lup
shares January -. continued Mr. Fisher
That alsp was mad" uut under hl- in
SfuICr Iou- said Ostermapu.
-War. 'hev paid for
O~terinaun explained that his company .
was Incorporated FOR tgUUO with en.OBn .
share az a par vain" - 81 each az these
close 20 auprJ were offered 10 railroad ,
men. hriksIuen fromen. -witChmen and b
conductors for 81 share He kept b
- 49, .hlrss- for himself George T..
MCNaill had go and VI B.il who was a
Q lfrfi frp,rp.TafoT had 80