The San Francisco call., 1906-05-28
GRAF TING
IN LARGE
RAILROAD
Conditions May Resemble
Those in Insurance
Companies.
Pennsylvania Line Now
Under the Light Of
Inquiry.
Officials Grow Rich Far
Beyond Measure Of
Salaries.

NEW YORK, May 27-Disclosures made
before the Interstate Commerce Commits
sion by officials of the Pennsylvania Rail
road regarding graft and gratuities in the
matter of facilities extended TO Favored
shippers has revealed condition OF al
fairs which has existed for many years
and which, like the conditions in the in
surance business, prior to the recent
changes in methods, was accepted by the
public as a scandal without recourse.
Coal dealers, independent or unafhliated
with the railroad officials. have testined
that they were harassed by reason or
their inability to obtain cars and their
business was consequently curtaiied- The
testimony relating to the lack Of facili-
ties in shipping coal to tidewater at-this
port is matter which has been discussed
among coal dealers in this community as
scandal which apparently could not be
rsnledied.
The disclosures of the details have come
at time when the public is infiamed by
previous developments of a similar ma
ture The outsider has witnessed the
wholesale changes amounting TO revolu-
ton in insurance companies wherein con-
ditions were almost identical
1t was asked in Wall street last week
when the coal department of the Penn
sylvania was under fire II the same con-
ditions do not exist in other depaI tnents
of the same companies.
1t is a matter of common Information
that many of the Pennsylvania officials.
their relatives and intimates have ac-
quired wealth far beyond the savings
from their salaries could warrant. Where
old they get it? is question the stock
holder in Pennsylvania is now asking
In view of the expenditure of hundreds
of millions of dollars which the Pennsyl-
vania has spent in the last three years, it
has become an interesting question with
stockholders of the company as to the
manner in which the money so freely
raised has been spent by its officials. Have
the officials of the company shared in the
profits of the contracting companies is
question which is being asked, nowadays.
in view of the disclosures attending the
investigation of the coal departments
The committee. self-appointed by the di-
rectors to investigate the subject of graft
in the coal department. may extend its
work of probing to other departments, and
as was the case in the Equitable Life
there may be found Frick among the
directors who will bring in a report that
viii compel a change in the condition Of
affairs.
1t is related that friends Of officials OF
the Pennsylvania recently acquired a
printing plant in New York. ard that the
great bulk of the printing of the Pennsyl-
vania is now exclusively turned out by
this company.
In the case of the insurance companies
1t was found upon Investigation that real
estate brokers having affiliation with the
managements were the only people whom
the company recognized in she matter Of
mortgages. Insurance supplies were
bought through one concern ds a result.
Stockholders are asking whether similar
conditions exist with the RAILROAD COM
pany directors which have perpetuated
themselves in control.