Los Angeles herald., 1910-08-30
WITNESS IN |. c.
FRAUD CHARGES
LIFE THREATENED
Sensational Evidence Given in
Case Against Former Illinois
Central Officials
DEAD OFFICIAL is INVOLVED
Ex-DireCtor of Repair Firm Ex-
plains How Stock Was
Given for Contracts
DEAD OFFICIAL is INVOLVED
Associated PressN

CHICAGO, Aug. 29.-Resumption of
the hearing today of charges against
Frank B. Hartman, Charles l.. Ewing
and John NJ. Taylor, former Illinois
Central railroad officials accused of
car repair frauds, developed sensa-
tional evidence.
Theophil Reuther, former director
of the Ostermann Manufacturing COM
pany one of the repair firms charged
with grating from the railroad, de-
clared on the witness stand he had
been told the late Ira G. Rawn held
1000 shares of the Ostermann company
stock. Reuther testified Ostermann
said he gave Rawn the shares in con-
sideratiof of an order for 10000 car
doors.
Rawn, who was found shot to death
at his summer home in Winnetka, LII
several weeks ago, had held a hign
official position with the Illinois Cen
trail railroad 1t had been expected he
would be an important witness in the
present case Previous to his death,
when being questioned before a mas
ter of chancery, Rawn declared he
held no interest in the repair firm
SECRETS OF STOCK TRANSFERS
Reuther's evidence regarding Rawn
was given while the witness was BEING
cross-examined regarding converse
ton with Henry c. Ostermann, presl-
dent of the OsterTnann Manufacturing
company. During this conversation
Reuther said Ostermann expressed his
intention of giving Joseph Buker, John
M. Taylor and Frank b. Hartman
1000 shares each Of Ostermann STOCK.
Rawn. according to Ostermann
nromised to give to the Ostermann
company the work Of making 10000
grain doors If he got the stock.
a.Did he get the shares?" asked At
torney Hoover.
previously. and he said he had given
them the shares of stock replied
Reuther.
Reuther related a story Of an en-,
counter with Ostermann during WnlcI
he declared Osternann threatened tc
kin him If he told of the transactions
between the Illinois Central and tht
Ostermann company. Reuther stateo
he went to Ostermann's office TO pro
test because he had not received dlvi-
dends upon his stock in the repair
company.
DENIED DIVIDEND PAYMENT
"Ostermann said no dividends had
been paid" testified Reuther, "and
told him that I had seen a check sent
to a man named Tomski. He said II
".You have done more harm than
good with this company Ostermann
shouted, and 1 replied that had done
a whole lot toward organizing the con-
Germ. and said, 1T will all come Out
how the Illinois Central was robbed
He grew angry, seized paperweigh'
and struck me on the head. / fell to
the floor and some men carried me oui
and placed me on my back. Oster-
mann said he would kill me If told
about the Illinois Central business.
sI got home and had to go to bed
August Diedrich, a foreman IN the
Burnside shops. called at my nome
and told me I should not say anything
about what happened Don't mix uF
John M. Taylor, Diedrich asked me
Mr.. Miller also called and asked me
not to say anything about the Oster-
mann affair." but 1 told them was
going to tell the Illinois Central just
as soon as / got out of bed.
"I went to see Mr.. Burton, master
mechanic of the Burnside shops-he
was nv boss-and told him about what
I knew of the stealing in the ILLINOIS
Central and that was going to squeal
He advised me to keep quiet and SAID
the men who wers stealing would get
caught anyway.
s'Then I went to see John M. Taylor
and William Renshaw, superintendent
of machinery, and told them how the
railroad was being robbed. They said
there was no stealing and told me tc
keep my mouth shut"