Los Angeles herald., 1910-06-07
FORMER OFFICIALS
LOOTED s2,000,0OO
CLAIMS RAILROAD
Illinois Central Charges Four Men
with Using Their Positions
to Rob Road
SUIT ALLEGES CONSPIRACY
Corporation Asserts Ring Worked
System of 0verCharges and
PoCketed Profits AI
SUIT ALLEGES CONSPIRACY
TAsaociated Pressl

N HICAGO, June 6.--Charging 1t had
been defrauded out OF about $2,-
~ 100000 on repair work in four
years, the Illinois Central Railroad
company filed suit for an accounting
against four of its former officials in
the circuit court here today.
The railroads bill, which alleges
conspiracy to defraud, names the fol-
lowing:
Orland 8. Keith, former superin-
tendent Of transportation
Joseph e. Buker, former assistant
superintendent of car machinery.
William Renshaw, former superin-
tendent of machinery.
John M. Taylor, former general
storekeeper.
In connection with these charges
against Its former officials, the COM
pany declares in its bill that those
concerned proflted in alleged over
charges on car repair work in the fol-
lowing amounts:
The Blue Island Equipment COM
pany, 100000.
American Car and Equipment COM
pany. 100000.
Osterman Manufacturing company,
$750.0OO.
Memphis Car company, 100000.
International Car company, amount
not given.
The railroad also filed suits for an
accounting against the West Pullman
Car company and against the Ameri-
can Car and Equipment company.
The action follows months of tnves-
tigation by the company and numer-
Gus rumors of an alleged graft ring
in the Illinois Central railroad.
The bill against the four former de-
partment heads alleges the men en-
tered into conspiracy in June, 1906,
and that from that date until April,
1910, the railroad company was de-
frauded out of nearly $2,0oo,000.
The defendants are alleged to have
represented to the corporation that
the company's repair work could be
done more cheaply by independent
concerns than at the railroads own
shops. When contracts were given
certain independent concerns, the bill
charged, the railroad company began
paying long series of large over
charges from which certain superin-
tendents are declared TO nave secureo
thousands of dollars.
INJUNCTION ISSUED
In the suit filed against the American
Car and Equipment company, Judge
Walker at once issued an injunction
restraining the car concern from bring
ing any suits to collect from the I'LL
nois Central amounts alleged to be
due.
In the bill filed against the West
Pullman concern it is charged that
Henry c.. Ostermann and the Oster-
mann Manufacturing company entered
into a conspiracy to defraud the rail-
road. The West Pullman company Is
successor to the Ostermann company.
The bill against the four former off,
cials says the four defendants caused
cars to be sent for repairs to repair
concerns controlled In whole or in part
by the four men.
The bill also charges that when the
Illinois Central closed its own repair
shops in 1906 1t had on hand large
number of cars to be repaired, and
large stocks of materials and supplies
with which to make repairs.
In this connection the bill says:
"They further conspired to cause your
orators materials and supplies such as
lumber, paint, ties, rails, bolts and
other materials and supplies, to be de-
livered to such companies without pay
ment made or any credit given your
orators"