The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-09-30
VAST RAILROAD
GRAF 7 EXPOSED
How Car Repair Companies
Stood i'm With Illinois Cen
Hal Officials.
BONUS PAID EACH
FOR DUMMY REPAIRS
One Check for $4,000 Paid
to the Late Ira
Rawn.

- cSttiiutuu, LUZ pTcSluthl
oil the Ostermann Manufacturing com
pany, We'd with each other before Mu-
nlclpnl Judge Bruggemeyer today in
stripping bare the secrets Of tho al
legged combination that is charged with
swindlIng the Illinois Central railway
by car repair frauds.
Goodrich, like Ostcrmann. was placed
on The stand as IL witness for the prose
cutlon. He described in detail methods
he SAID Illinois Central officers used TO
conceal their identity as stockholders in
the Ostermann repair concern. In tes
tfylng yesterday Ostermann had said
that certain payments to the railroad
officials were made by checks TO Good
rich. When placed on the stand today
Goodrich began his testimony at this
point.
"The checks were made out in my
name, Goodrich said. "Frank b, Har-
ously If ] would agree to let him have
checks made out in my name and ac
cept certain payments for him. |
agreed. / do not know what source the
checks came from, but l received a
number of them. | know, however,
that they were issued by this company,
of which / have been reading in the
newspapers. l Endorsed them and placed
them to my private account in the Fort
Dearborn National bank. -
Photographs of $50 900 worth Of
checks signed by +. II. Niles. who is
president OF the Blue Island Car and
equipment company, were then intro
duced by Attorney Walter L. Fisher
for the prosecution. Goodrich identified
the Inducements on them as having
been made bv him. Niles went on the
stand several days ago and testified
that payments for Hartman were made
to Goodrich. Most of the checks were
paid on December Is. 1909
Ten Thousand for Rawn.
The name of Ira G. Rawn, late pres
ident Of the Monon railroad and former
vice president of the Illinois Central.
was again brought into the proceedings
when Goodrich testified that on Decem-
Der Is, 1909. he wrote check for So.
600 to Ira g. Rawn, which was cashed
by Rawn on December 21.
The $4,000 check, he said, was in re
turn for two $4,000 checks sent to Good
rich on December 13 and signed by
Niles.
f'Did YOU talk with Mr. Rawu about
these checks7n Attorney Fisher asked.
a formal Introduction. Goodrich re
piled. 81 talked with Mr. Hartman at
his Office and he asked me to send him
checks from my bank for the ones !
received for him Under Mr. Harri-
mans instructions / did the same for
Rawn.'
"To whom did YOU deliver the
checksl''
|.In every instance | sent them by
mail"
Ostermann was recalled when Good
rich had concluded his testimony.
In connection with the formation of
the Memphis Car Repair company. Os-
termann told how stock was issued and
10 whom.
New names. those of II. b. McCourt.
general superintendent of the Illinois
Central lines south of the Ohio river,
aud w. S King, general superintendent
railroad were mentioned by Osterman
in this connection.
Stock was issued in certificates of l6l
shares each in the Memphis Car Repair
company. Ostermann said:
''This stock was divided among Ira
G. Rawn. +. B. Hartman. Joseph Buker,
w 5. King, H. II. McCourt William
Rcnshaw, j. NJ. Taylor and Secretary
Ward of the Memphis company. At the
suggestion of Mr.. Buker had all the
stock made out in my own name.
know that Messrs. Rawn, Hartman and
Taylor got, their shares, and | expect
the others did, too
The witness then went into details of
the history Of the organization of the
Memphis Car Repairing company He
testified that Buker called upon him
and said there was room for another
car repair plant. They then took up
the subject Of possible location, Oster
man said.
''T made q trip to st. Louis. Kansas
City and Iltchfeld Kan, hunting for 4
suitable location the witness said,
.'but labor and material were not Just
right, and came back TO Chicago with
out selecting 4 site. ! then went 10
Louisville and Memphis. and we decided
II. II. McCourt, v. $. King and ] then
organized the Memphis concern. Later
! was told TO issue stock to Mr.. Rawn
and Mr.. Hartman.
Bonus for Fake Repairs.
Ostcrmann then said car repair com.
panics paid certain Illinois Central Off
cIals a bonus as high us T25 each car
for cars sent 10 them for repairs, and
made presents of varying size TO nlI
Grades Of employees for vigilance III dc.
tectiug and reporting bad order
cars. He said the amount charged on
each car by the repair companies was
lr:II officials interested IN the alleged
grating.
.'Wc gol orders at Que timc. the
witness said. "pot TO let the charge per
ear run higher than 1873, and lstcr tins
was reduced to S27j. In many cases the
cost Of really repairing ii car would rmn
higher. bur wc had to mako the average
as the amount stated. In trying TO
keep the average down, VIC adopted The
.,I Tcn.IIIEU lD1f
never had been repaired. Only cars
that passed through the switches in our
Yards were so reported.
Al one time an order Tor the repair
inc Of 800 cars WAS received from the
Illinois Central. The ears were i'm such
bad shape that they could not be re
paired for $255 each, the price fixed by
Mr.. Taylor. called up Mr. TAYLOR and
! told him so. rhc next day Mr.. Bukcr
cane out to the plan! and told me that
President Barahan had received bid
| of S2T5 from another concern Tor tins
I