Evening star., 1944-11-25
100 Railroad Walters
And Stewards Accused
In Union Pacific Fraud.

Federal Bureau of Investiga-
tion agents early today began
arresting more than 100 Union
Pacific dining car walters and
stewards on charges Of with
holding receipts for meals from
their employer, the Justice De-
partment announced.
FBI Director j. Edgar Hoover
said the alleged operation had cost
the railroad an estimated 5000, 900 a
year. ID .
All Of those involved in the al
legged conspiracy worked in dining
cars on Union Pacific Challenger"
trains between Omaha and Los
Angeles, the announcement said.
Dozens were taken into custody at
Omaha, Los Angeles and Las Vegas,
New, and others were being arrest
ed upon the arrival of trains at
designated points on the route.
Used Checks Twice.
The dining car crewmen were ac-
cused Of swindling the railroad by
using meal checks more than once
o. by failing to give checks and
pocketing the money paid by Gus
toners. Although no customers lost
money as result of the scheme, the
announcement said the racket has
cost the railroad an estimated $780,
600 per year."
The stewards and walters involved
were indicted at Los Angeles yester-
day on charges of conspiracy to vio-
late the theft from Interstate ship
ment statute, which provides maxi
mum penalty of two years imprison-
ment and a $4,000 fine upon con-
viction.
officials said the Union Pacific
had Standby" dining car crews
waiting to take over Immediately
the work Of those arrested this
morning.
Agents Worked in Cars.
FBI agents had worked as
stewards and assistant stewards to
collect evidence.
"On occasions" the Justice De-
partment said, walters have failed
to give meal checks to entire seat
mgs of 68 servicemen customers.
The money paid for meals then was
split equally between the walters
and the stewards or assistant
stewards.
THE racket on each train in
volved was directed by the stewards,
who are accountable for all funds.
One report by a steward indicated
that IS meals were served, but spe-
cial agents ascertained that 11s
customers were in the dining car
during the serving period >.
The dining car crewmen watched
for inspectors and operated honestly
when danger of detection arose.
They realized that someone might
notice an increase in receipts on oc-
casions when inspectors were on
trains and sometimes discouraged
patronage by having a waiter en-
phasize, IN announcing meals, that
fish would be served
In emphasizing that the racket"
involved in this case was limited to
the Union Pacific's Challenger
trains, officials pointed out that with
a train leaving each day from
Omaha and Los Angeles six "Chal-
lengers" were on the road at one
time.
Railroad Oficial Silent.
In Omaha, a spokesman for Union
Pacific headquarters said the rail-
road had no comment and that 1T
Is strictly matter for the FBI."
Special FBI Agent Duane l.. Tray
nor said in Omaha that President
William M. Jef1ers OF the Union
Pacific had Solicited the aid of the
FBI" when he learned the railroad
was mot obtaining the revenue it
should from operation of dining
cars" Special FBI agents thereupon
began riding as passengers on the
Los Angeles coach section, to which
the investigation was limited, Agent
Traynor said.
The manipulation enabled stew
ards to average about $50 a round
trip on the Los Angeles Challenger
the TRY aoept seid