The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1910-10-06
CAR REPAIR GRAFT
GRAPHICALLY TOLD
Henry g. Ostermann Proves I'm.
portant Witness in the Illinois
Central Case.

Chicago, Oct. Henry III. C. Os
termann, former president of the Os-
termann Manufacturing company, who
Is said to have been a big factor in the
Illinois Central railroad car repair
frauds, related a sensational story OF
the inside workings Of his concern be.
fore Municipal Judge Bruggemeyer
yesterday.
Ostermann was called as a witness
for the prosecution in the conspiracy
hearing against Frank b. Hartman,
Charles l.. Ewing and John M. Taylor,
former Illinois Central officials, charged
with participating in extensive car re-
pair swindles.
The testimony involved not only the
names of the three men now on trial,
but extended to a dozen others who
occupied positions of trust with the
railroad company during the time that
the car repair frauds were said to have
been executed.
The late Ira G.. Rawn, former presi-
dent of the Monon railroad, who was
mysteriously shot to death at his
Winnetka, ILL.,, summer residence last
July, was named by Ostermann as one
of the chief figures in the alleged graft
ring.
Rawn Deeply involved.
Ostermann declared that Rawn, when
was given $500 shares of stock in the
Ostermann Manufacturing company,
and that this was increased to 200
shares. He said that Rawn sold this
stock to the Ostermann plant at par,
IS a share. After he sold back the
stock for $13.5O0, the witness testified,
Rawn demanded and got, first SIS, then
$40, and finally SIS for each car re-
paired or alleged to have been repaired
at the Ostermann plant. In this con-
nect1on Ostermann testified that he
personally made one payment of &c.
500 to Rawn, which he said was for
700 cars upon which the concern had
collected repair bills. The witness said
that Rawn received SIS a car during
the first six months of the year 1909.
\ This was during the last six months
that Ostermann was connected with
the repair company.
In addition to the payment per car
to Rawn, Ostermann said fixed
monthly sum was paid certain officials,
and per cent per month dividend
was paid on all Ostermann Manufac-
turing company stock held by Illinois
Central officials. This stock dividend,
amounting to "a per cent per year. was
paid on several large blocks Of Oster-
man company stock, said Ostermann.
Those Who Hold Stock.
What Illinois Central officials held
stock in your company" Ostermann
was asked by Attorney Fisher.
Ira G. Rawn had 200 shares,
Frank B. Hartman had 1900 shares,
John M. Taylor had first 1000 and
then 5000 shares, Joseph e. Buker had
1900 shares, William Renshaw had
$500 shares, and w. ]. Taylor had 500
shares. 8. p. and Mildred Hartman
had 100 shares each, but do not know
who they are or whether they are
connected with the Illinois Central
company, their stock being bought and
paid for by Frank b. Hartman"
What officers of the company re-
ceived monthly payments from your
concern and in what amount" Oster-
mann was asked.
Frank b. Hartman received $1,000
monthly, Joseph E. Buker also got
$1,000 monthly, William Renshaw was
paid $500 monthly, w. ]. Leahy 800,
r. M. Dunlap 800, r. G. Ransom SOS.
John Waters $25, Matthew Morgan sos,
and F. A. Jones got 500 on at least
one occasion that / know of person
ally"