New-York tribune., 1910-06-07
ILLINOIS CENTRAL SUITS
Railroad Charges S2,O00.O00
Graft in Its Repair Work.
CARRIED OVER FOUR YEARS
Four Former Department Heads
: and Five Firms Said to
Have profted.

Chicago. June s.-Charging that It has
been derrauded of about s2.6eoeoo On repair
work in a period of four years. the Illinois
Central Railroad Company to-day fled suit
in the Circuit Court for an accoun ing
against four of it's former officers.
The railroad 6ompanys bill which al
leges conspiracy to defrsud, names Orlando
s. Keith. former superintendent Of trans
portation; Joseph E Buker. former assist
ant superintendent Of machinery; William
Renshsw. also former superintendent Of the
machinery department, and John NJ Taylor
former general storekeeper
In connection with the charges the rail
read declares in its bill thai these con-
Germs profited in alleged oveTcharges on
car repair work in the following amounts
The Blue Island Equipment Company. $500. .
000: the American Car and Equipment Com
panv. S1Oo. Coo: the Aesterran ManufaCtlr-
ing Company, $50 onn. and the Memphis
Car Company. SS000G0 The international
Car Company is also named as having prof.
tied.
In addition to the suit fled against the
four former officers. the railroad also filed
suits for an accounting against the West
Pullman Car Company and against the
American Car and Equipment Company.
The filing Of the suits follows an investi-
cation by the railroad company and nu-
rnerOus rumors of an alleged graft ring
in the Illinois Central Railroad. High off
GERS of the road have stoutly denied that
there existed eny trouble of this charactec,
The bill against the four former depart
rnent heads alleges that the men entered
into a conspiracy in June, 1905, and that
from that date until April. 1910 the railroad
company was defrauded out Of nearly
&. COO COO. 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 con
tracts were given to certain independent
concerns. the bill charges, the railroad com
pany began paying a long series Of large
overcharges. from which certain superin-
tendents are declared to have obtained
thousands Of dollars.
In the suit filed against the American
Ca and Equipment Company Judge Walker
at once issued an injunction restraining
the car concern from bringing any suits to
CRIleCL ITOL1 the llIliiDlS ASLllId diliO4tilS
alleged to he due.
In the bill filed against the West Pull
man concern it is charged that Henry G,
Ostermann and the Ostermann Manufact-
pring Company entered into On alleged
conspiracy TO defraud the railroad The
West Pullman Company is successor to
the Osterman company.
The bill against the four former officers
states that they caused cars to be sent
for repairs to concerns controlled in whole
or in part by Keith. Buker. Renshaw and
Ts ylor
The bill also charges that when the Illi-
nois Central closed its own repair shops
in 1906 it had on hand large number OF
cars to be repaired and large stocks of ma
terials and supplies with Which to make
repairs. In reference to this the bill says
They (the defendants) further conspired
to cause your orators materials and sup
plies, such lumber, paint. ties. rails
bolts and other materials and supplies. tc
be delivered to such companies, without
payment made for any credit given you1
orator.