The Birmingham age-herald., 1910-08-31
Important Testimony Is Given
 In Illinois Central Case
BILLS ARE PAID TWICE
A Yard Inspector Tells How Cars Arc Dismant1ed and Water Poured On Parts of the Cars to
 Form Rust

| Chicago, August S0.-Fred c. BarDott, featuring company, one of the concerns charged with grating in the Illinois Cen | tral car repair contracts today on the witness stand in municipal court, de- scribed in detail methods which he said were used to defraud the railroad com- pany.
 Barbott said that Illinois Central cars -"in strings of from five to fourteen were switched into the yards of the Ostcr- mann plant at the close of the working day. Then at night, he said, Henry c. Ostermann, president of the Ostermann company, frequently directed the dis mantling of the cars. Air hose, angle other equipment were then stripped from the cars, Barbott testified.
 Water was then applied to the various parts where equipment had been re- moved, the witness declared, so that rust would form and make the absence of equipment appear old. The equipment taken from the cars was kept by the ostermann company, Barbott said, to make repairs.
 In this way, the witness testified, the railroad company was paying at least twice for much of it's car equipment. Barbott also said that some of the Illi- nois Centrafs car inspectors were receiv- ing pay checks from the Ostermann com- pany and that he had seer various Ill., nois Central officials including Frank B. Hartman former general manager, visit Ostermanns office in the shop yards In addition to Barbott, Theophile Reuther, former director of the Oster- mann company. who gave startling tes- timony on Monday, was on the witness stand today. Reuther underwent a grill ing ross-examnation of two hours and half at the hands of Attorney Hoover for the defense. Reuther's testimony, however, was not shaken by the long fire of questions.
 During the afternoon c. M. Powell, general manager of the American Car and Equipment company was present as witness was sworn, and then excused, to be examined later
 It was said late today that officials of the general offices of the Illinois Gen. tral will be placed on the stand tomorrow in an attempt to show exactly, if possi- ble, how much the railroad claims to have lost in car repairs.
 Previous to the appearance of Barbott on the witness stand, Theophile Reuther added to his testimony of Monday in a somewhat sensational manner
 q was told that John M Taylor, gen. eral storekeeper for the Illinois Central,' said anything to anybody about graft"
 Reuther then told about visit he and his wife made to the offices of Taylor and of subsequent visit to William Henshaw, former superintendent of trans portation for the Illinois Central, who is now in Europe. He said that upon both of these visits he told of the informa- tion of alleged stealing and graft that he held and of what was occurring at the Ostermann plant. The witness said both Taylor and Henshaw asserted such stealing and graft were impossible with out their knowledge, and that they knew nothing of it.
 Reuther described at length the oc- casion when he says threat was made against his life He said that two men, Dietrich and Milligan, visited him at his home and told him that they came from John M. Taylor. Reuther testified that the visitors told him that MT. Taylor would fix his clock if he told anything about graft" and further said flor God s sake don't talk"