The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-05-25
necessary would have paid my share
Senator COckrell here interrupted,

Ter lot you 20 say you Went INTO d
speculative deal; that none Of you
paid any cash and that the corpora
ton was responsible for the purchase
price 1 don't see the necessity of
beating about the bush.
Concerning the Huron Coal Com
pany, Mr. Patton said he thought ne
had 500 shares, but was not certaln,
which he acquired in the same man
ner as his holdings in the Atlantic
Crushed Coke Company. He was ask-
ed if he ever held stock in the Co
lumbia Coal company. He said ne
had at its organization, but it became
selling company instead of an op-
Grating company and he sold his stock
to a GreenSburg, Pa. banking COM
pany.
In the Green wich company Mr.. Pat
ton said he had 1000 shares. He said
ne was obligated by note TO amount
of $4,000 for the purchase Of the land.
The money was guaranteed by NJ.
Huff's bank at Greensburg.> Witness
said that he got the money back
through the sale Of the bonds.
The examination of Mr. Patton de-
yeloped the fact that he held stock in
dozen coal companies, 6,140 shares o.
which, with a par value of 100000,
he had acquired without payment. IN
addition he owned 700 shares which
had been paid for.
How do you explain the fact, Mr..
Patton" queried Mr. Glasgow, that
you acquired principally through
George F. Huff such an enormous
amount of stock?''
Mr.. Patton said he was born in
Western Pennsylvania, and had been
a life long friend of Colonel Huff.
Friendship" he said, goes a gooi
ways. These stocks were not given me
for any favors | might be able to do
the companies Some years ago the
Pennsylvania Railroad Company had
to encourage the developments of he
soft cold lands. Then it was not con-
sidered a crime as it appears to be
| now for a railroad man to hold stock
in a coal company. | have never at
tempted to conceal my ownership Of
coal company stock"
Were your superior officers aware
| that you owned this stock?' asked
Mr.. Glasgow.
Il think Mr.. Roberts and Mr.. Thorn,
| son were"
And Mr. Cassatt?'
Il judge so. 1t was generally
known
Commissioner Clements asked the
| witness if he did not think there was
danger of discrimination when rail-
| road officials held coal company stock.
He admitted that there might be an
| element of danger He said the rail-
| road company did not in the early
days discourage the system of railroad
officials joining and organizing mining
| companies.
Are they discouraging the system
now?"
Il can't say, but I Judge So
"HOw is it manifested?"
81 have seen no manifestation Of
| it,
In answer to a question by Chair
man Knapp Mr. Patton said it had
| been the general custom in the soft
| coal region to organize companies by
distributing the stock and paying for it
out Of the profits.
D. S. Newhall, purchasing agent Of
the Pennsylvania railroad, testified
| that he sold eighty shares of stock in
the Latrobe-Connellsville Coal Com
pany, which he received in exchange
for stock of the Superior Coal Com
| pany, 20 shares in the Valley Coal
| Company and 20 shares in the Freercrt
| Coal Company. The stock was original
| ly acquired with money he borrowed,
and by agreeing to share in the profits
and losses
| Theodore n. Ely, chief of motive
| power of the Pennsylvania railroad,
said he owned stock in several CON-
panies which he paid for at par.
| By continuing questioning Mr.. Glas-
| gov developed the fact that Mr.. Pur-
Vance held no shares valued at S3s
| 500, for which he paid no cash. The
witness said that through Mr.. Patton
and Colonel Huff he acquired stock
when the companies were organized by
| helping to promote them. He signed a
| note obligating himself to pay lis
| share of the losses.
| J. N. Purviance. chief clerk to Viii
liam A Patton, testified that he held
| 1,130 shares of coal stock
| First Vice President John P Green,
| Of the Pennsylvania railroad, when
| questioned by Mr.. Glasgow emphati-
cally disclaimed any interest in coal
/ lands, coal companies or Oil compa-
nies. Y
Railroad Company in the Susquehan-
ma Coal Company"
"It owns it.
| Captain Green and Attorney Gias-
| cow then entered into a discussion as
to the propriety of railroad official
promoting coal company.
Captain Green took the position that
there could be 10 improperly in i
railroad official connecting himself
with a coal company on exactly The
same basis as all other stockholders
The railroad man, he said, committed
himself to the same obligations as the
others who acquired stock in new
company and the whole transaction
must be regarded as purely venture
in which the whole of the interested
parties took the same risk.
Mr.. Green explained further thai
when the soft coal field was in process