The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-22
PR R. FACES new GRAFT HUNT
MINORITY STOCKHOLDERS WANT
LEGISLATIVE INQUIRY.
Alleged That Onlcials Received Large
Presents From Concerns That sup
piled Rails. Locomotives and Equip.
ment for Road-Carnegle Contradict ed

ment Tor hOa0-s aTnPHle I untrhuIcte t
PHILADELPHIA. May 2l.-An investiga'
ton by the State Legislature Of the manage
ment Of the Pennsylvania Railroad, such
inquiry TO include IA rigid inquiry into al
the details surrounding the contracts for
steel rails, engines and other equipment
made in the last five or six years, will prob.
ably be the outcome Of the present unrest
among the minority stockholders OF that
corporation.
This information comes direct from one
Of the largest minority interests and is
the result Of the exposures Of graft by the
Interstate Commerce Commission.
1t has been alleged that Pennsylv ania
Railroad officials received lnrge sums for
placing contracts with favored steel COM
panies. Owing to the restrictions placed
upon the present investigation Of the Inter-
cate Commerce Commission by the resolu-
ton OF Congress, many avenues which
would prove or disprove the allegation Of
general graft cannot be entered.
Only those features OF management that
deal with coal or oil traffic can be touched
upon.
The minority stockholders want TO know
what safeguards against graft arc taken
in other departments, They have en-
ployed counsel, and the next step Ia only a
matter OF a short time. II il argued that
the result can only be obtained by the
appointment of n committee of the Lcgis-
lature. In an interview to-day Vice-Presi-
dent Green spoke of Andrew Carnegie,
who last week denied receiving any rebates
from the Pennsylvania Railroad. Capt,
Green supported the assertion made by A..
j. Cassatt In a recent magazine article, in
which the Pennsylvania's president said
that the Carnegie steel companies received
more rebates than any other shipper on
the road. He further contradicted Mr..
Carnegie, who had denied ever having any
personal interview with Mr.. Cassatt.
There's Just this about it," said Capt.
Green, "our records show that the steel
companies governed by Mr.. Carnegie
received more rebates during the time they
were given by our road than any other
shipper in any line OF business.
Il rave not the slightest doubt that Mr.,
Carnegie held not one, out several con-
~ferences with President Cassatt upon the
subject. | also know that Mr.. Cassatt's
refusal TO grant rebates after the enact
ment of the Sherman aw led to strained
relations between us and Carnegie's COM
panies.'
A summons was served to-day on Robert
Pitcairn, Mr.. Cassatt's assistant at Pitts
burg, to whom President Jamison OF the
Jamison Coal Company says he sent $4,000
in cash for his good will, and upon William
A.. Patten, Mr.. Cassatt's Philadelphia
assistant, who is said to hold large blocks
OF stock both for himself and others in the
favored coal companies,
The commission will spring on Wednesday
one Of the greatest graft sensations of
the hearing. 1t has information that many
officials received their presents from coal
and oil companies in cash. This money
was distributed regularly, 1t is alleged,
all of it going through n hand. The
agent in this proceeding is said to have
been n former superintendent of trans
%portation.
The money, it is said, was given to him
by the coal companies and he placed it in
blank envelopes which were given to various
officers Of the operating department.
While awaiting the meeting of the COM
mission the railroad officials are making
plans for defence. Fifty officials and clerks
in the soft coal region we're called
to this city or Saturday and to-day were
questioned as to their coal holdings.
George B. Creighton, superintendent
OF the Pennsylvania division, who is di-
rectly in charge of these men, spent an hour
or more in conference with General Man
ager w. W. Atterbury at the Broad Street
Station and was closely questioned as to
the men under him, as well az to his own
holdings in coal companies. With Mr.. At
he visited the Office Of Second
Vice-President Pugh and the whole matter
was again gone over,
John Lloyd is another man from whom
the Interstate commission hopes to learn
much. Mr., Lloyd is treasurer of the Co
Coal Company (which receives many
fuel orders from the Pennsylvania Rail-
road. Mr.. Lloyd, when asked during GER
tain reoeivership proceedings lately what
officers Of the Pennsylvania Railroad were
In his company, refused to snswer.i.