The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-06-04
CASSATT MAKES A
PUBLIC STATEMENT
Says Charges VIII be Fully In
vestigated by Board
TO PUNISH THE GUILTY
Declares that all Coal Shippers Pay
Full Tariff Rates Without Re-
bate to the Pennsylvania
Railroad Company.

Philadelphia June IA. J. Cassatt,
president of the Pennsylvania Railroad
company. arrived at his home at Haver-
ford, Pa. a suburb of this city, from
Europe about noon today. He will ba
at his office in Philadelphia tomorrow
morning.
To the Associated Press Mr. Cassatt
said he returned home to take part in
the investigation by the board of directors
of the Pennsylvania Railroad company
into the matters that had been disclosed
during his absence in the proceedings
before the interstate commerce commits
sion. He had received only brief cable
reports from the office of the company,
and knew nothing of the details, but from
these reports and from cables to the Lon
don press he had learned that charges had
been made against certain officials of the
acceptance of bribes from coal operators.
The board would investigate all such
charges extensively and if any officer or
employe should be found guilty of cor
rupt practices he would be summarily
dealt with.
Referring to the testimony of certain
officers that they held stocks of coal
companies, and to the inference drawn
by the newspapers that favoritism and
discrimination on a large scale had been
practiced for the benefit of the compa-
MES whose stocks were thus held, Mr..
Cassatt said that while such ownership
bq officers In a position to exercise favor
itism, and therefore liable to suspicion,
was no doubt inadvisable and unfortu-
nate, it was not an offense in itself If
the stock were properly acquired, and
was not contrary to the bylaws of the
company; in fact the management had
in the early years of the company en-
couraged the officers to aid in the devel-
opment of industries along its lines.
No Favoritism.
The wrong, If any had been done, was
in the alleged favoritism. There could
be no favortism in rates as shippers of
coal and all other freights were on an
absolute equality; all paid the full tariff
rates without rebate. Mr.. Cassatt made
himself personally responsible for the alb
solute correctness of this statement. If
there was any discrimination it could
only be in the distribution of empty coal
cars and so far as he knew no proof
had been produced that the officers con-
eerned had been guilty of such favoritism.
The board would, however. also inquire
carefully into these matters and If there
had been any wrong done, would take
proper action, but it would not sacrihce
faithful and efficient officers to manu-
featured and mistaken public opinion,
The board would also, no doubt, con-
slider the general question of the propriety
of the ownership by officers and employees
of stock of coal and other companies
using the Pennsylvania eompanys lines
and make regulations in relation thereto
Inere had always been shortage of
coal cars during periods of every year,
and in recent years this condition had
been aggravated by the great increase
in the production of coal, notwithstanding
the very large Increases the company had
made to Its equipment
This had given rise to many complaints,
and as a natural consequence to charges
of discrimination. If the output OF coal
should continue to increase In the same
ratio as In the past few years. 1t might
not be possible to provide sufficient
equipment to avoid shortage in the
car supply at times. In view of this and
of the suspicion which such ownership
would create officers having to do with
the distribution of empty cars ought not
to own coal stocks, but to prohibit all
officers and employees from holding stock
of companies having business with the
Pennsylvania Railroad company would
practically bar them from investing In
the stocks of companies located In the
state of Pennsylvania and In half dozen
other states. The subject was trouble
some and complicated. 1t would do no
good but harm to adopt unavoidable and
unenforceabe regulations. The question
must be handled in reasonable and
practical way, and Mr.. Cassatt had no
doubt that the board would succeed in
solving 1t satisfactorily. and In formulate
ing proper rules of conduct in this respect
for the officers.
Individual Misconduct.
Though the testimony before the COM
mission might disclose instances of indi-
yidual misconduct and though an effort
seemingly organized had been made to
place the management in the most un-
favorable light Mr.. Cassatt asserted that
the company's affairs were honestly con-
Quoted in the interest of the shareholders,
and with a full recognition of its duty to
the public.
The company had in its employment
over 10000 men. who in character, eff
cheney and devotion to its interests had in
their respective spheres, no superlors any
where The management had in the past
shown itself entitled to the confidence
of the public, and 1t should be trusted
now to deal properly with the present
situation. Mr.. Cassatt thought, too, that