The Birmingham age-herald., 1910-09-02
Testimony Leads to Possible Connection With Con-
 pany In Memphis
STARTLING FACTS LAID
 BARE BY CHIEF WITNESS
Clarence H. Polly Testffes to Making Out Checks for Illinois Central Of- fciaIs From the Osterman Man. ufacturing Company

Charles L. Ewing, former Illinois Central railroad officials, charged with conspiracyI in connection with the Illinois Central car repair frauds took an unexpected turn in Judge Bruggemeyers court today
 Counsel for the railroad company de- I clared that efforts were being made toI connect the defendants with the MemphsI Car company, one of the concerns chargedl with extensive repair frauds against theI Illinois Central. The railroads lawyers| said they considered evidence given todayI by Clarence H. Polly, formerly chief clerk for the Ostermann Manufacturing com-' pany, as indicating that such a connecticut has existed.
 Polly, as on yesterday, was the chief witness in the hearing for the prosecution. His testimony at certain points was start i ling. particularly when he declared thatI he had written out several 5000 currencyV checks for certain. Illinois Central of-I ficials by order of Henry c. ostermann. Attorney Walter l.. Fisher. chief coun-| sel In the case for the railroad companys| met with repeated objections on the partI of the counsel for the defense while theI examination of Polly was going on. InI nearly every instance. however, the courtI ruled that the witness should answer theI questions.
 Did you ever make out any currencyI checks?" Polly was asked. "Yes, in 1907 and 19os." For what amount?'' "One thousand dollors.'' Under whose instructions did you make| out these currency checks?' Osterman's Instructions '"The instructions of Henry c. Oster-| mann. He told me that the officials down. at Twelfth street, Illinois central officials.
 wanted stock He said if they wanteal
 stock they would have to pay for it. Later|
 he told me the matter was fixed up, andl
 for me to make out currency checks. Il
 made out a number of these checks ITO what account were they charged?'] "To the management and expense ac-| count" Polly replied. | Did you ever go to Memphis while you1 | were employed by the Ostermann com-I pany?" asked Attorney Fisher. "Yes," said Polly 'in the summer of| 19os" "Under whose instructons?" MT Ostermann told me to go over thel books of the Memphis company with Bre- back whd mad charge of the Memphis of | iices, and 'traighten them out was Oj ermann interested in the Mem | phis comj lny?' Did yot ever have anything to do with
 making bills from the Memphis Car com- pany against the Illinois Central? "Yes." Did you have instructions?' Yes, Ostermann told me to change some of the Memphis bills and to All in others that bore only car numbers Blank Document | The witness said that many of these | bills were blank documents and Polly admitted that he made them out against the Illinois Central for supposed car re- pairs at Memphis that were never fur- nshed H.tf
 | Polly then testified that the Memphis
 blank bills were sent from the south to the Ostermann company in launches"
 How did you put materials in these bills?"
 .I used my own judgment in doing | that" the witness replied, and specta- Itors in the courtroom laughed. How did you know what amounts to | fill in?"
 | same average in Memphis as to the rate | of cost for repairs"
 Do you remember a man by the name of Lundberg?"
 "Yes. He was employed as a checker | for the Illinois Central at the Ostermann plant ]
 Did he receive any money from the Ostermann company"
 Yes. He made some trouble about l l,o IP
 note among budget of car bills. At
 other times I put s or sl0 among repair
 bills for him..
 i Where did you get this money?'
 q got it from Henderson, the book
 keeper
 Letter Is Presented | Surprise was evident in the courtroom
 when Polly was shown a paper which
 he identified as a letter which he said he received at his home in Sierra Madra,
 Cal. in May of this year. from Oster-
 mann. fl
 Attorney Fisher then read the letter to
 the court In part it was as follows:
 "As I have learned that you intend
 returning to Chicago for the purpose Of going to the Illinois Central to inform them as to our methods of billing at the
 West Pullman plant. take this oppor- tunity to advise you that you hold your pencil. as they are making every enort
 to get statements Stepping at nothing)
 from former and present employees, wish
 to advise that up to the present time not one of us has given them information of
 any kind, and should you be approached by any one I wish you would advise me.
 Let me hear from you by registered mall without fail.
 "(Signed)
 HENRY c. OSTERMANN." Just before court adjourned for the day 1t was announced by counsel for the rail- road that other former employees of the lOstermann Manufacturing company would