The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-07-30
ASTOUNDING
DETAILS Of
|. c. GRAF I
RAILROAD HELD UP WIT n
OWN GUN in OWN
HANDS
MILLION AND A HALF
GAR REPAIR STEAllNGS
New Rolling Stock Used TO
Patch Up Old and Both
Charged For


inois Central Railroad company was
made to act as It's own highwayman
furnishing its own pistol holding
the weapon 10 its own head and plund-
ering its own pockets connection
with the ALLEGED 81 100000 fraud in the
repair OF freight cars, was disclosed
at a hearing before Master In Chan
Gerry Roswell B. Mason.
A most astounding tale OF graft was
uLfolded when Harold A. Sims, for
mer travelling car inspector for the
railroad and later In the employ OF
one OF the five car repairing compan-
ies that are charged with the fraud
told in detail how the railroad furnish
ed new cars 10 be torn TO pieces for
use In the building of one OF the re-
pair plants and the repair of old
cars and then paid padded bills, not
only for the work dCne, but also for
the materials and time consumed !
dismsitllng the new cars. To sim
pity the obbing OF Itself the abroad
company induced Sims to enter the
employ Of the alleged robbers.
Here are some OF the things. as
disclosed by the evidence. that the
alleged consiprators did:
Some Of Things Disclosed.
Dismantled Illinois Central freight
cars TO procure material 10 put into
the construction OF the plant of the
Memphis Car company and then charg
ed the Illinois Central Railroad for
repairing the dlsmantled cars.
4 fcols many pa Is from Illinois Cen
tral cars that were In good repair
and used the parts to repair cars that
were in bad order, charging the rail-
road company for the stolen parts.
Repaired good oder cars from
which parts were stolen to repair bad
order cars, charging the company
with the material used in both and
for the labor OF robblng the ears as
well as repairing them.
Secured materials flom the Illinois
Central company's shops at Memphis
with which to make repairs and then
charged the Illinois Central for the
material.
Had much of the wood work neces-
sary In the repair OF cars done In the
shops OF the Illinois Central at Mem
phis and then charged the Illinois
Central for doing the woi k itself.
Charged for repairing one-half the
brakes that came in, irrespective OF
whether or not any brakes were re
paired.
Padded the bills for labor approxi-
mstely 40 per cent.
Made a uniform charge for four
teen gallons OF paint to car, ire
spectye of whether any paint was
used and regardless of the fact that
a flat car requires only from two TO
three gallons.
Sims, 1t appears, was the man who
hal charge OF the repair yards OF
the Memphis Car company, which was
the second car company organized by
Henry c. Ostermann. with the alleged
view of defraudIng the Illinois Cen
trail. When the investigation began
Sims had quarreled with the manager
OF the car company and was living In
Kansas City, where detectives found
him and induced him to agree to turn
states evidence. The story as re
told by Sims disclosed such law
method OF grating that II was declar-
| ed TO be little short OF marvellous that
the conspiracy ran so long as it did
without being discovered.
Makes Robbery Easy.
The testimony, which Is being taken
In the case begun by the railroad
ccmpan . recover 100000 excess
paid Il he Memphis Car company
ese,, tho tact that ! NJ. Taylor
former general storekeeper of ths
n..n.ls Dsntla., anu J.. n. Bukef, lvi
.rig assistant snperintedent of ma
chinery, induced Sims to take a leave
of absence from the railroad and ente
~ s.apluy OF Ostermann. The Hin
oil, Central officials did not tell Simi
why he was to work for 0stermann
but subsequent events showed lha
they had chosen their man wisely TO
Sims did everything Ostermann In
structed him to do to make II cas-,
to rob the railroad company.
Sims told his story In matter o
fact manner which emphasizes tn
boldness OF the scheme whereby tn
railroad company was made the viz
tim OF whole ale robbery. ring tn
line that the Memphis Car compan
did business with the railroad it n
paired total Of 3.ll7 freight carl
for which 1t was paid sy39,396, an
OF this amount. 1t Is charged, 5000