The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-09-29
Henry G. ostermann, Presi-
dent of Manufacturing Com
pany Bearing His Name,
Unfolds a Story of Graft.
IRA G. RAWN AGAIN
IN THE LIMELIGHT
Railway Magnate Who COM
mitted Suicide Given Rake
OFT Amounting to Many
thousands of Dollars,
FRANK CONFESSION MADE

CHICAGo, sept. 2S.-Heury g oster-
~ manu. former president Of the OE-
~ nnhn manufacturing company,
W"" u said Co have been n bfE factor
In the Illinois Central railroad car re-
pair frauds related sensational story
OF the inside workings Of his con-
Germ before MunlcipnI Judge Uruvr-c.
meyer today.
ostermann was called ~ n v,Ttn~r.
"r the prosecution I'm the conspiracy
henrtnE nEninst Frank n. Hartman.
thnrleS l. Ewing and Iohn VI. Tnv-
Tor former Illinois Central Officials
cnarkcd with participating I'm extensive
ear repair scandals.
The testimony Involved not only In,
names OF the three men now on trial
nut extended 10 dozen other. vho
formerly occupied positions of trust
with the railroad.
The late Ira G. Rawn. who was nlvv-
teriously shot 20 death at his sum-
mer home last July. was named by Os-
termann as one Of the chief figures
In the alleged graft ring.
Ostermanu declared that Rawn. when
vice president Of the Illinois central.
was given 1900 shares OF stock in the
ostermann Manufacturing connpan,-
and that this was Increased 10 : 566
shares. He said that Rawn sold thfs
stock 70 the Ostermann plant at par.
or - a share.
After he had sold back the stock for
Sla.5OO. the witness testified Hav-n de-
manded and got first s.. then $40 ana
lnally $40. FOR each car repaired or
aueged 70 have been repaired at thu
Ostermaun plant. Osteruann testified
mat he personally made one pavfnent
81 SL9.SVo TO kawn. which he said was
Tot 200 cars upon which the concern
haq Collected repair bills
IN ADDITION to the payment per car
TO kawn. said Ostermauu. a fixed
monthly sum was paid certain officials
and a per cent per month dividend
was paid on large blocks of OEter-
mann mann Manutacturing company stock
held by illinois Central officers.
Wen In the Deal.
What Illinois Central officials hold
STOCK IN your company Ostermann
was asked by Attorney Walter 1. Fish
er: C, counsel for the railroad.
p. Hartman had . 300 49, Ink ing
NJ. Taylor had first 1000 and then
quo shares. Joseph 4. Huller had 200
shsres' nam Renshaw had 1900
shares. $. p and Mildred hartman IMAM
n -..,'L LOO shares each, but do not know
connected with the Illinois CentrsI
company. their stock being bought ard
paid for by Frank B. Hartman
nat Officers or the road received
monthly payments from your concern
and in what amount
Frank y. Hartman received 81 900
monthly. Joseph =. Buker. $1,000
$500 monthly: W. J. Leahy. 500. n p' ~
Dunlap. 500. r. u. Ransom. sos Johr
waters. 225. Matthew Horuan s2s
and +. a. Jones got 500 on at least
one occasion that 7 know OF persons
ally
start Of Ostermann.
Ostermann then told OF the orEanfza-
tion Of his company. and how the men
who helped him get started were later
turned down" 10 favor certain Illinois
Central officials.
ostermann first secured a patent on a
special door for box cars. To get
money TO market the enterprise he
went TO his old friends. TO brakemen.
(ContInued on Page Nine.N