I'm certainly no iSeries expert, but since nobody else has chimed in...
Without a third-party agent, your options are limited. A couple of possibilities:
Screen-scraping
If you want to use a scripted input to screen-scrape the connection, you can leverage the pexpect Python library to help interact with the telnet (or whatever) session. pexpect is not included with Splunk, but will work fine if you place the Python libraries in the same directory as your script.
Dump to a file, then retrieve
If you can dump the contents of each of the logs you're interested in to a flat file, it's not so bad. You can use a cron job to copy the files from IFS/FTP/etc. to a path Splunk indexes, and pick it up from there. Or, you can have Splunk retrieve the file directly as a scripted input.
Roll your own syslog forwarder.
PASE evidently has syslog support, and it looks like there's some sort of API structure (QjoRetrieveJournalEntries?) available for accessing the contents of these.
Given the cost of a Splunk Enterprise license, realistically it may be worth it to just go for the extra $4k for the 3rd-party forwarder (syslog-ng, PowerTech, etc.).
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