The Birmingham age-herald., 1910-04-19

have been perpetrated in connection witt Illinois Central affairs is due, it is stated largely to the laxity of the accounting system which was permitted before the new comptroller arrived. It appears that certain matters were taken for granted which should have received closer inspec- ton. On the other hand the investiga- ton has shown the folly of railroads put ting S70 a month men to watching work for which railroads have to spend mil lions. Seventy dollars month is about all a car inspector ever gets, and it was upon his o. K. that bills for several mil- lions were paid by the company.
 That the car manufacturing companies which are involved in the case do not in- tend to sit calmly under accusations is shown by the fact that the Blue Island Car and Equipment company yesterday, through Pringle, Northup & Terwilliger, attorneys, began suit against the Illinois Central in the circuit court for the reeoy- cry of s950O0, which is due that com pany for the repair of cars during the latter part of 1909.
 Declare Bills Regular
 In connection with the suit, it IS stated that the Illinois Central off, cials refused to pay the money, which is q balance of a large bill rendered by the car repair company. upon the ground that padded bills were rendered for work done on the cars. The oni- cials of th he Blue Island Car and Equip ment company insisted that the bills were regular and correct and insist cd upon payment. They were told flat ly by President Harahan that the bills would not be paid until the investiga j. ton was concluded.
 It is understood that several other car manufacturing companies arc threatening suit. I. Is stated that pay ment has been refused on bills rem dered by the Ostermann Manufactur- ing company, by the Ryan Car con- pany and by the Memphis Car and Power company of Memphis. Tenn. An agent of the latter company was in Chicago yesterday and made demand for payment of the bill. The Oster- mann Manufacturing company, now the West Pullman Car company, has em- ployed legal counsel and is threaten Ing a fight in the courts The Pull man company. the American Car and Foundry cCm1any and several other companies did repairs for the Illinois Central during 1909. but it is under questioned.
 Deg for Repair Work
 As matter of fact. the Illinois Central officers. when confronted with 24.000 bad order cars which needed re- pair at once. went begging for repair work and were glad to turn cars over to any and all companies that would take them Of the 24.000 cars 12,e00 were picked out as needing heavy repairs an7 were Harmed out" When railroads farm out cars for repairs they select those which need heavy repairs, as the lighter repairs can be done quickly in the shops of the com panv.
 It was leaned yesterday that the repairs on ule cars Harmed out aver aged close to $500 per car. making the total bill approximate telv s3.G00, ,000 fol the year D09. At least sl. 900 900 O, this Is claimed to have been a steal The dctevtiVes also have unearthed the fact that prior to 1909 many cars were Harmed out which could have been repaired in the shops of the Illinois Central. Inste ad It was reported to tho higher officials that the shops were toe busy.
 The first repair work gifen the Os. termann Manufacturing company wal given 1t bv the advice of 6 fo-rnel superintendent of motive power ant machinery who has sincs left the em ploy of the company He told tn. higher officials that Henry c. Oster I mann, d IOTnlCE on the Il illinois Central road. had started tn. manufacturing company bearing hi name and that 1t was located on tn, tracks of the Illinois Central at Wes Pullman. TIe thought 1t would be { good thing to give him some business l The higher officials lad no objection providing Ostermann would do tn, work as reasonable as any other firm,
 After that the laxity of the system pertaining on the Illinois Central mad l 1t possible for hundreds of cars to b. 1 hauled past the shops of tho com pany at Burnside to the shops of tn, Ostermann Manufacturing company a West Pullman, there to be required a alleged excissiye prices. in addition t. the 1llionis Central cempanys payin; a switching charge each way of not les than S10. The reason for this wa found in the alleged fact that certain Illinois Central officials or 'employe held stock in the Osetrmann Manufac turing company.