Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-09-29
BARES DETAILS
Of CAR REPAIR
SW|NDLE
WITNESS duplicates
DEAD UNION PRESIDENT
Declares Rawn Got First SIS
and Then $40 for Every III
i1oiS Central Car Repaired
By 0StermaDn Company

49, Morning journal Special Lensed Wire
Chicago, Sept. 2S.-tlepry {. Oster-
mann former president o. the Oster-
mann Manufacturing company who
is said 10 have been a big factor IN
the Illinois Central car repair frauds,
related n sensational story of the in
side workings Of his concern before
Municipal Judge Br~iggemeyer today.
Ostermann was called ms a witness
FOR the prosecution in the conspiracy
hearing against Frank b.. Hartman,
Charles l.. Ewing and John NJ. TAYLOR,
lormcr Illinois Central officials. charR-
ed with participating IN extensive "a
repair ewindlcs.
The testimony Involved not only the
names Of the three men o on trial,
but extended TO n dozen others who
occupied positions Of trust with the
railroad during the time the car re-
pair frauds We're said 70 have been
executed.
Ostermann declared that Ira G.
Rawn. when president of the Illinois
Central was given i,500 shares of
stock in the Ostermann company, and
that this was Increased to 200 shares
lie said that Rawn sold this stock to
the Ostermann plant at par. 80 q
share.
After he had sold back the stock
for Sf3.500. the witness testified,
Rawn demanded got first So,
then SO and finally SIS. fer each eur
repaired or alleged to have been re-
paired ut the Ostermann plant. In
This connection. Ostermunn testified
that he personally made one payment
of $4,000 to Rawn, which he said
VAS for 200 ears upon the concern
had collected repair bills.
The witness said that Rawu receiv-
ed Sf5 q car during the first six
months that Ostermdnn was come T.
ed with the repair company.
What Illinois Central officials heid
stock In your company" Ostermann
asked ny Attorney Fisher.
IRA G.. Itawn had 200 shares
Is Hartman had 2.200 shares,
John N. TAYLOR had flrst 1000 and
had 2,200 shares, William lscnshaw
had 1000 shf,res and " j. Taylor
had BOO shares.
"Whpt officers ofa the railroad re-
monthly payments from your
and in Whit amount? ."
Ostermann was asked
Frank u Hartman received $1,000
monthly: Joseph e. Baker. sl.0e0
1000 mOnthlS. William Renghn'w.
paid $500 monthlV; w. } t<ealy, /
90; X. ". Dunlap. 500: Il. q. RAN
SIS. John Waters. s25; Matthew
Morgan SIS, and II, A., Jones got sla0
~ at least one QGas'op that ( knew
Jf personals.
Ostcrmann told them ~ the or-
of his company. rotating
low the men who helped him get
,tarted 10y buying s'o K were later
turned down to favor certain Hi
rolls Central officials.
OstcrmaDn first seeuSaI q patent
IN - splendid doof Tor brN cars which
le prepared To- place ou the lni rt ct.
70 get money for this enterprise he
vent to his old friends, to brakemrn,
conductors, yardmon aud other rail-
Dad employees. Many Hf ,hem our
heir savings,
Il did not think of GOING Into tee
repair business a. inst. sud
,stermnnn. The idea nFts first sus-
10 me by Mr. CoEsidlnc whom
met while selling stock In the grain
enterprise. lie suggested the mat
er TO me and latter / tool it uP with
N. Taylor of the Illinois CEN
raj lie discouraged me first aid
alter assisted me. Joseph II. iipscr
me 10 Ira g. Rawn To- arrange
W % ANAfNlNAA ~ wv i'F1tA NNAN A'E
he illinois Central.
Nlr. RUwn asked me" sail Ost,J-
mann. how many cars 7 Thought
ould turn out in IL tltv auG : replied
out twenty-five per ldN. You ara
man We are look m- for lac sale
I'D the deal was a~rrdas@ri."
rht witness than relufrl Ta. IN
500 hc was told hy John N Ta'ior
bat Frank %. Hartman wanted 10 see
i'm. that Hartman Wautc,l &c. by
gore stock in the Ds,crluan1 concern
Mr.. Hartman was then general
manager OF the Illinois Central n
offices in the Pary Row station.
Ostermanu. n saw Hartman az
is offices ana we had "a talk about
be stock. :
4 refused 10 sell Hartman q y
lock NJ stock AZ that time ne stuse
-ould thereby lose the c~ontrJiing iu- Z
rest in the company. Instead of J
cling Hartman the stock, we "tme :
1 an agreement whereby ! WINS q"
ay Hartman $1,000 a month. } ptiu Z
mount In person. some times in ,
h-cks and some times IN cdsh y
Sometime after this. I had talk !
.ith I}nker ana Pee suggest that 2 '
az some money To- the did nlan tNir.
.aWn). J asked him how much ana
e. lid about So a car for cNtrv rar .
paired Later Buckcr said u- Air.
felt they ought 10 have a title a
money ON the cQrs. Eaicr SAID :,
other repair COMPANIES were no. '
ir a. and that he han T. take his /,
Jl.rs regarding the riatrr ot re- )
contracts from thJsr above h'sc :
Q ihis way the payme1. Der ,nr was Q
TO $40 and then To- SIS. {
During the period that Wis alleged =
.tffuu was going on. t1-trTmfuu d.