New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-29
"RANN GOT THOUSANDS
OsternlaHn Tells of Alleged ], G.
Car Repair Graft.
a DOZEN OTHERS INVOLVED
Remarkable Story Of Sehers BY
Which, Il Is Said, Railroad
Lost Millions.

Chicago. ssst z-Hsnry G ostsru1a1r1.
formerly president OF tEe Cstsruaun Manu-
featuring COMPANY. who f. said % havs
baer a biz factor in the Illinois Central
Railroad car repair frauds. by which th3
railroad IS alleged 70 have lost several
million dollars. related a remarkable story
OF the inside workings OF hts concern be-
fore Municipal Judge Brugssn1eyer today
Ostsrnanu was called az witness for
the prosecution N the trial for conspiracy .
OF Frank 3 Hartman. Chariss l. living
and Iohu II Taylor. former Illinois Cen
'trsI officers. who ars charged WIKI taking
rart In extensive car repair swirdlss
The testimony not al0rs involved the
three men now On trial but EXTENDED 20 a
dozen others who occupied posts OF trust
v4+b the railroad COMPANY when ire a.
legged repair frauds we're conceived and ex-
ecutsd
Ira Q Rawu. former president OF ti1s
Monon Railroad wh0 was nystsrlouslJ
shot 70 death az his home. n Wiznetka. IL.
last July. was named BY Ostsrmann as ons
Of the chief figures n the alleged srarrlns-
Osterrnann declared ti1at as vice-prest-
dent Of the Illinois Central Railroad EaTn
first received $50 shares OF stock II tne
Ostermann Manufacturing Company. ara
later 100 more shares ne said that RaVo
sold this stock 70 the manufscturirs corr
pany at psr-S5 a share
Rz~n Got $3.50 for se-~~.
After Rapn had sold back his holdings
O. stock in the car repair company for
1880 the witness testified. the torrne-
Illinois Central vice-president demanded
and got first $. then $40 and finally Ks for
each car repaired. or alleged to have BEEN
repaired. at the Osternann plant Cstsr-
mann testified that he personally made one
payment Of 5000 20 Rawn for 90 cars on
which the concern had collected bills Tor
repairs. The witness said that Rswr re-
ceived SIS a car during the first SIX months
OF the year 1863 This vas the last six
months that Osts-uuann was connected with
the repair COMPANY
According 70 Ostermsnn- three distt1lc-
kinds OF payments were made in the pass 2
ing OF this alleged graft IN addition to the
pavuent 70 Rzwn for each car OsCermau1 .
said that a fixed monthly sum was paid q (,
certain railroad officers and a , per cent a
month dividend was paid on ali Osternann 7
Manufacturing Company stock held ~
Illinois Central officers. This stock divi-
dend. amounting TO = per cent a year, vas
paid on several large blocks OF Osfernsun
company stock, Osternann said
What Illinois Central officers held SoclS
in your company OsternaHu vas asked
Ira c. Rawn had ZOO shares. Frank
Hartmann had 100 shares, John n Tay-
Tor had, first 10Go and then 59o0 shares:
Joseph z. Buker had 40 shares. William
Renshaw had 1880 shares ant ". 7 Taylor
had 900 shares. s. P and Mildred Harr'-
mann had 100 shares each, but DO not
know who they are. or whether they vers
connected with the Illinois Central com
panv. Their stock was bought and paid for
BY Frank B. Hartmann
What officers Of the railroad company
received monthly payments from your com
panv. and in what amount Ostermanu
was asked
Monthly Paynsnss-
Prank Hartman received $3.50
monthly. Joseph E BUker also got SEQ
monthly. William Reushaw was paid $40
monthly. ". J. Lsahy SEQ. II II Dunlap.
500. r q Ransom. 50, Joan waters 50;
Matthew Morgan. -. and F. 4 Jones GOT
500 on at least one occasion that I know
Of personally.
7 did rot think Of going into the car re-
pair business at first. said Ostermanl-
The idea was first suggested to me BY =
Tr Considinc whom i met while selling
stock in the grain door enterprise Later
took II w w3-h John VI TAYLOR, Illinois
Central He discouraged ne at first and
later assisted me. Joseph Z Buksr took
me % Ira c. Rawu 70 arrange for con-
tract TO DO repair work fer the Illinois CEN
trail
Mr. Ravu asked me how MANY cars
thought I could turn OUT IN a day, and ] 70
Piled, about twenty-five You are ne man
we are looking for he said and the deal
vas arranged"
During the period that the alleged graft
Ing was going on Ostsrnaun said he Ian
died each deal IN person, and made the
payments OF money 20 the railroad officers.
He declared that he frequently passed
81 .OG0 bills 20 certain Of the men mentioned
On one occasion, he said. he handed over
IS ono bill