The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-07
Former Officials Of Illinois
Central Figure in Suit
For 100000
|NVEST|GATIONssHAS BEEN
GOING ON FOR MONTHS
High Officials of the R0ad Have Long
Denied Rumors of Graft But the
suits Bring Out the Fact
of Big Losses

Chicago, June 6.-Charging that 1t has
been defrauded of about 100000 on re-
pair work in a period of four years the
Illinois Central Railroad company filed
suit for an accounting against four of its
former officials in the circuit court here
today The railroad company's bill.
which alleges conspiracy to defraud,
names the following men: o. S. Kile,
former superintendent of transportation;
William Reinshaw, former superintend-
ent of the machinery department; John
M. Taylor. former general storekeeper.
In connection with the charges made
against its former officials the Illinois
Central railroad declares in its bill that
these concerns profited in alleged over
charges on car repair work in the fol-
lowing amounts: Blue Island Equipment
company, 100000 the American Car and
Equipment company. 100000; Ostermann
Manufacturing company, sI50.000; the
Manufacturers Car company, $780, 600
In addition to the suit filed against the
four former officials the railroad also
filed suits for an accounting against the
West Pullman Car company and against
the American Car and Equipment COM
pany.
The suits were also filed in the circuit
court here The filing of the suits fol-
lows months of investigation by the rail-
road company and numerous rumors of
an alleged graft ring in the Illinois Cen
tral railroad.
Heretofore high officials of the road
have stoutly denied that there existed
any trouble of the character alleged The
bill against the four former department
heads alleges that the men entered into
a conspiracy in June. 1906. and that from
that date until April 1910 the railroad
company was defrauded out of nearly
81, 100000
The defendants are alleged to have
represented to the corporation that the
repair work of the company could be
done more cheaply by Independent con-
Germs than at the shops of the railroa I.
| When contracts were given certain In
dependent concerns the bill charges the
railroad company began paying long
series of large overcharges from which
certain superintendents are declared 10
| have secured thousands of dollars.
| In the suit filed against the American
Car and Equipment company Judge Wal
ker at once issued an Injunction restrain-
ing the car concern from bringing any
suits to collect from the Illinois Cen
tral amounts alleged to be due.
In the bill filed against the West Pull
nan concern it Is charged that Henry
featuring company entered into the con-
spiracy to defraud the railroad. The
West Pullman company is successor to
the Ostermann company.
The bill against the four former off,
cials states that the four defendants
caused cars to be sent for repairs TO
repair concerns controlled in whole or
in part by Keith. Buker. Renshaw and
Taylor.
The bill also charges that when the
illinois Central closed its own repair
shops in 1906 ii had on hand a large
number of cars to be repaired and large
stocks of materials and supplies with
which to make repairs. In this connec-
tion the bill says: "rhey further con-
spired to cause your orators materials
and supplies. such as lumber, paint. ties.
rails, bolts and other materials and sup
piles to be delivered to such companies
without payment made or any credit
given your orator"