The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1910-10-01
MADE HIS HAUL
Rawn, Who Committed Suicide in His
Home Last Summer, Turns Out
FIRST CLASS CRATER

FIRST CLASS GRAFiER
Former President of Car Repair
Company Details the Payment Of
Large Sums of Former President
of Monon Route, Who Was Mys-
teriously Shot .at His Residence.
Henry c. ostermann, former pres
ident of the Ostermannii Manufactur-
ing Company, who is said to have
been big factor in the Illinois Cen-
trail car repair frauds, related a SEN
sational story of the inside workings
Of his concern before Judge Brug-
gemeyer at Chicago on Wednesday.
Ostermann was called as witness
for the prosecution in the conspiracy
hearing against Frank B. Hartman,
Chas. L. Ewing and John M. Taylor,
former Illinois Central officials, who
are charged with participating in ex-
tensive car repair swindles.
The late Ira G. Rawn, former
president of the Monon Route, who
was "mysteriously" shot to death ut
his summer residence in Winnetka,
Ills, last July, was named by the
chief figures in the alleged graft
ring.
Ostermann declared that as vice
president of the Illinois Central,
Rawn was given 1850 shares of
stock in the Ostermann Manufacture
ing Company, and that this was in
creased to 2,7O0 shares. He said
that Rawn sold his stock to the man
ufacturing company at par, SIS a
share. After Rawn had sold back
his stock holdings in the car repair
company for $13,500, the witness
says the former Illinois Central vice
president demanded and got first IS
and then $40, and finally SIS for
each car repaired or alleged to have
been repaired at the Ostermann
plant.
In this connection Ostermaln tes-
tilted that he personally made one
payment Of $10,500 to Rawn, which,
he said, was for 700 cars upon which
the repair concern had collected bills
for repairs. The witness said that
Rawn received SIS car during the
first six months Of the year 1909.
This was during ethe last six mon tbs
|. that Ostermann was Sonnected with
the repair company.
According to Ostermann, three dis
tinct kinds of payments were made
in the passing of this alleged graft.
In addition to the payment per car
as to Rawn, said Ostermann, fixed
monthly sum was paid certain Off
cials and two per cent: monthly
dividend was paid on all Ostermann
Manufacturing Company stock held
by Illinois Central officers. This
stock dividend, amounting to "a per
cent a year, was paid on several
blocks of Ostermann Company stock,
said Ostermann.
"What Illinois Central officials
held stock in your company" was
asked Ostermann by Attorney Fish
er.
IRA G.. Rawn had 2,100 shares;
Frank B. Hartman had 1900 shar-
es; John M. Taylor had first 1000,
and then 5000 shares; Jos. e. Buk-
er had 2,200 shares. VIM. Renshaw
had 1900 shares and w. J. Taylor
had 500. S. B. and Mildred Harri-
man had 100 shares each, but
I don't know who they are other than
they were connected with the Illinois
Central Company. Their stock was
bought and paid for by Frank B..
Hartman.
"What officers of the railroad COM
pany received monthly payments
from your concern and in what
amounts?" Osterman was asked by
counsel for the prosecution.
Frank B. Hartman received sS,-
100 monthly; Joseph E. Buker also
got $1,000 monthly; VIM. Renshaw
was paid $500 monthly; W. J. Leahy
s100; H. N. Dunlay s100; R. G. Ran
som s25; John Waters s25; Matthew
Morgan SIS, and F. A. Jones
500 on at least one occasion that
I personally know Of"
Ostermann then entered into a re-
cital Of the organization OF the man
ufacturing company.
II did not think of going into The
car repair business at first,
said Ostermann. ''The idea was first
suggested to me by a Mr.. Considine,
whom I met while selling stock in
the grain door enterprise. He sug-
gested the matter to me and later
I took it up with John M. Taylor, Of
the Illinois Central. He discouraged
me first and later assisted me. John
f. Baker took me to Ira G. Rawn 10
arrange for a contract to do repair
work for the Illinois Central.
'iMr. Rawp asked me how many
cars l thought l could turn out in
day, and l replied about 25.'
"'You are the man We are look