The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-08-31
OSTERMAN HAD
CARSD|SMANTLED
YARD INSPECTOR TELLS HOW
ILLINOIS CENTRAL WAS Dc.
FRAUDED ON REPAIRS.
IN STRINGS OF 10 TO "A.
Cars Were Switched Into Osterran
Yards and Equipment Taken
Off-Water Applied to
Make Deeeiving Ruot.

| Chicago, Aug 30.-Fred G. Barbott
lyard inspector of the Osterman Manr-
featuring Company one of the con-
Germs charged with grating in the
Illinois Central car repair contracts,
today in the municipal court de-
scrbed in detail the methods which
he said were used to defraud the rail-
lroad "r
| Barbott said the Illinois Central
oars-'in strings of from ten to four,
I teen'-were switched into the yards
Of the Osterman plant at the close of
the working day. At night, he sad,
4 Henry c, Osterman, president Of the
company, frequently directed the dis
lmantling of the cars. Water was ap-
piled to various parts where the
equipment had been removed so rust
would form and make the absence of
i the equipment appear old. The equip,
ment taken from the cars was kept
| by the Osterman company to make
repairs. In this way, testified the
witness, the railroad company was
paying at least twice for much of It's
car equipment.
4 Barbott declared some of the Hill
nois Central car inspectors were re-
1 20 nj ncfn
company, that he had seen some l..
| G, inspectors, including F. B. Harri-
mann, former general manager, visit
| Osterman's office.
Theophil Reuther, former director
of the OsterRan company, whG gave
sensational testimony Monday, under
went gFilling cross examination OF
| two hours and half at the Hands OF
Attorney Hoover, for the defense,
| Reuther's testimony was not shaken.
He testified that he went to Oster:
mans offices to protest because he
had not, received dividends upon ms
stock in the repair company.
"Osterman said no dividends had
been paid" testified Reuther, and
| | told him that | had seen a check
sent to man named Tomski. He
said it was a lie
"You have done more harm than
good with this company Osterman
fshouted, and replied that had done
a whole lot toward organizing the
concern and said. 1t will all como
out how the Illinois Central was rob
bed He grew angry, seized a paper
weight and struck me on the head I
fell to the floor and some men carried
me out and placed me on my back
Osterman said he would kill me if
told about the Illinois Central bust
mess -
Il got home and had to go to bed
August Diederich. foreman in the
Burnside shops, called at my home
and aold me shouldn't say anything
about what happened. Don't mix up
fJohn NJ. Taylor Diederlch told me.
Il went to see Mr.. Burton master
mechanic of the Burnside shops--he
| was my boss-and told him about
what | knew of the stealing in the
Illinois Central and that | was going
to squeal. He advised me to keep
quiet and said that the men who were
stealing would get caught anyway.
Then went to John NJ. Taylor
| and William Renshaw, superintend-
ent of machinery, and told them how
the railroad was being robbed. They
said there was no stealing" ae
After he had completed this story
he added another interesting chapter
by reciting the details of free stock
| in which former Vice President ira
G.. Rawn, Hartman, Taylor and joseph
Buker were ivegn 200 shares each.
Not being familiar with the methods
Of high finance the. simple-minded en-
gineer says that he protested, saying
that the concern could il afford to
give its stock away IN such free
handed manner.
Grain Door Order involved.
why, that's all right" he quoted
Osterman as saying, we've got to get
the Illinois Central's business. AS
soon as Rawn approves of the con.
tract we will get an order to put TO-
900 grain doors on freight cars"
A sensational development of the
day was the acquisition Of extremely
valuable papers, stolen two months
ago from the illinois Central. An
itinerant evangelist returned the
documents today, saying his two boys
had found them floating in the lake
at South Chicago. Without these
documents the road would have been
|badly handicapped in its prosecution.