Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-24
PRESIDENTS ASSISTANT HOLDS STOCK
Mr.. Patten Has 100000 Worth Of Shares
Which We're Given Him.
MANY HIGH OFFICIALS SUMMONED
Men Who Manage Pennsylvania Railroad
Asked to Tell What They Know.
MINORITY STOCK HOLDERS WAKING UP
After Interstate Commerce Commits
sion Is Through state LesisIa-
ture May he Asked to Probe
Deeper Into AFFAIR.

Deeper Into AFFAIR.
PHILADELPHIA. May 2s.-Further rev.
elations concerning stockholdings in soft
coal mining companies by officials OF the
Pennsylvania railroad were made today
when the Interstate Commerce commission
resumed it's investigation into the alleged
discrimination by railroads in the distribu
tiop Of cars. Three high officials Of the
railroad-F1rst Vice President John z.
Green. Third Vice President Samuel Rea
and William A. Patton, assistant to the
president at Pniladelphia--were the i'm
portant witnesses Of the day. Mr.. Petten
was under examination the greater part OF
the morning and was an unwilling witness.
The persistent questioning of Attorney
Glasgow for tho commission, however.
brought out the fact that Mr.. Patten had
acquired stock. the par value of which is
$907OO0 in various coal companies without
cost to himself He explained that he had
signed notes obligating himself for his
share OF the losses and declared his belief
that It was proper for him to accept the
stock under those conditions.
Vice President Rea read statement in
which he explained all his stock transac-
tons, in which he expressed the opinion
that he was not debarred from such owner
ship because of his connection with the
railroad company Mr.. Rea said most Of
his stock was acquired through land syndl-
Gates which took up the coal properties for
development.
Company IL InvestiRatinE.
Vice President Green said twenty or
thirty years ago 1t was not considered
improper for oficer OF a railroad to own
coal company stock, but conditions have
= changed and such holdings might not now
be regarded In the same light as formerly.
He informed the commission that the
board of directors of the Pennsylvania rail-
road. acting on the Information that had
been brought out at the hearing. had to-
day appointed a committee OF five directors
to make an investigation into the connec-
ton of its officials with coal companies.
Mr., Green said he did not own a dol
lars worth OF coal company stock.
Other witnesses testified to stock own
ershfp and To discrimination in the dts
tribution cf cars. Chairman Knapp for
mer Senator Cocksen and Judson c. Glenn
ents conducted the hearing Tonight Mr.
Clements left for Cleveland, where he will
join Commissioner Prouty to conduct the
hearings in the oil investigation beginning
tomorrow
High OmciaIs Summoned.
High officials of the Pennsylvania rail-
road are among the witnesses who will be
heard during the examination this week
The revelations last week, when a number
OF Pennsylvania railroad officals admitted
accepting gifts of stock in various soft
coal mining companies. impered the COM
mission to subpoena more important officers
In an effort to determine the extent of the
secret business relations alleged 70 exist
between the railroad and certain COM
panies.
Tha v.ttn.s... % -. .,a,,,,a a,,-. a. .
hearings this week include Captain John p.
Greene, FIRST vice president of the Penn
sylvania railroad; William A. Patton, as
sstant TO President Cassatt at Philadel-
phiai Robert Pitcairn OF Pittsburg Con-
gressman George Hun, president of the
keystone Coal and Coke company; John
Lloyd, president OF the Columbia Coal
Mining company; ]. Howard Patton. a
coal man and brother OF William A.
Patton; Theodore N ELY, chief of motive
power; d. 8. Newhall purchasing agent
OF the Pennsylvania railroad; j. X. John
ston, superintendent OF the Tyrone divis-
ion; Victor wirman. superintendent of the
Amboy division; j. N Purviance, chief
clerk to William A Patton; c. A. Wood
chief clerk to the general superintendent
David Steele, assistant trainmaster of the
Pittsburg divisions A. L. Fitlock, Charles
Culp, H. c. Burkett and c. A. Buch.
AS result Of the investigation. minority
stockholders of the Pennsylvania railroad
are said to be considering plans 10 brine
about a more thorough probing through
the state legislature Such an investiga
tion would include an inquiry into al
the various details surrounding the con
tracts for steel rails engines and othel
equipment made In the last hve or sil
years. The present investigation is limited
by the Tillman-Gillespie resolution TO tn,
relations Of the railroads to the coal anC
oil industries.
cassatt's Assistant on stand.
The entire commission sat for today
hearing
The hrst witness was w. A. Patton
President Cassatts assistant He wa
asked what interest he had In coal com
panies. He enumerated the various com
pahies in which he held stock. Concerning
the Keystone Coal company shares o
which $500 were In hts name, he said he 20
the stock by purchase and through tn
merging with the keystone company o
smaller companies in which he was inter
ested. Five hundred OF the shares. he said
belonged TO his brother. ]. Howard Patton
who Is interested in coal properties in west
ern Pennsylvania Mr.. Patton explaine
that he held stock in fve companies whic
were consolidated with the Keystone an
through that transaction secured his hold
ings IN the Keystone company.
MIR. Patton proved an unwilling witnes
when questioned about his holdings in tn
Atlantic Crushed Coke company and re
peated efforts were made by Mr. Glasgow
10 draw a positive statement as 10 whethe
he had paid any actual cash for his 4
shares in the company. Mr.. Patton ex
plained that he became interested in IN
land purchasing company through ]. How
ard Patton. who represented the interest
Of Colonel George +. Hum.
When the land was purchased he said IN
investors were obligated to pay their pr
rata share. but as there had been No losss
Il was not necessary 20 pay in cash
You got that obligation hack didn
your
Il did IN stock."
Were you required TO pay 7nythins t'