Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-04
CAHEATT rs BACK HOME
FORMAL STATEMENT By THE
"PENNsY. PRESIDENT.

MIA Railroad Company, arrived at his home
at Haverford. Pa. suburb of Philadel-
phia, from Europe about noon yesterday.
Mr.. Cassatt gave to the Associated Press
last night a statement as to his reasons for
interrupting his European tour.
Mr.. Cassatt said he had returned home
to take part in the investigation by the
board of directors Of the Pennsylvania Rail
road Company into the matters that had
been disclosed during his absence In the
proceedings before the interstate commerce
commission. 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 London
press he had learned that charges had been
made against certain officials of the accept
ance of hribes from coal operators. The
board would investigate all such charges
exhaustively. and II any officer or employe
should be found guilty Of corrupt practices
he would be summarily dealt with.
The Coal Stock Ownership.
Referring to the testimony Of certain off,
GERS that they held STOCKS Of coal compa-
MES, and to the inference drawn by the
newspapers that favoritism and discrimina-
ton on q large scale had been practiced
for the benefit Of the companies whose
stocks we're thus held, Mr.. Cassatt said
that, while such ownership by officers in a
position to exercise favOrittsm, and there
fore liable to suspicion. was, no doubt, In
advisable and unfortunate, it was not AN
offense in itself If the stocks were properly
acquired. and was not contrary to the by
laws OF the company-in fact, the manage
ment had In the earlier years of the COM
pany ENCOURAGED the officers to aid in the
development of Industries along its lines.
The wrong. II any had been DONE was in
the alleged favoritism.
There could be no favoritism in rates,
as shippers of coal and all other freights
were on an absolute eauality--all paid the
full tariff rates without rebate. Mr.. Cas-
satt made himself personally responsible
for the absolute correctness of this state
ment. II there was any discrimination 1t
could only be in the distribution of empty
coal cars. and. as far as he knew, no proof
had been produced that the officers con-
cerned had been guilty Of such favoritism.
The board would. however, also inquire
carefully into these matters, and IL there
had been any wrongdoing would take proper
action. but 1t would not sacrifice faithful
and efficient officers to manufactured and
mistaken public opinion
Question Of Car Shortage.
The board would also, no doubt, consider
the general question of the property of the
ownership by officers and employees OF
stocks Of coal and other companies using
the Pennsylvania Railroad Companys lines
and make regulations in relation thereto
There had always been a shortage Of coal
cars during periods of every year, and in
recent years this condition had been aggra-
waited by the great Increase in the produc-
ton of coal, notwithstanding the very
large increases the company had made to
its equipment. This had given rise to many
complaints and, as natural consequence,
to charges of discrimination.
II the output of coal should continue to
Increase In the same ratio as in the last
few years. 1t might not be possible to pro-
vide sufficient equipment to avoid a short
this and Of the suspicion which such own
ership 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
stock companies located In the state of
Pennsylvania and In a half dozen other
states
Honest Management.
The subject was troublesome and compli-
Gated. 1t would do no good, but harm, to
adopt unavoidable and uncomfortable regu-
lations. 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
formulating proper rules Of conduct In this
respect for the officers.
Though the testimony before the commits
sion might disclose instances OF individual
misconduct. and though an effort, seem
ingly organized, had been made to place
the management in the most unfavorable
light. Mr.. Cassatt asserted that the COM
pany's AFFAIRS were honestly conducted In
the interest OF the shareholders and with
full recognition of its duty to the public.
The company had in It's employ more than
l6o,oo men, who IN character. efficiency
and devotion to its interests had. in their
respective spheres. no superiors anywhere.
The management had in the past shown it
self entitled to the confidence of the public,
and should be trusted now to deal prop
eriy with the present situation.
Complains Of the Press.
Mr.. Cassatt thought. too, that the man
agement deserved better treatment than It
had received from the press. and particu-
larly from the press of the company's home
state. 1t had rendered an immense service
to the public and to the cause of honesty
and decency In the conduct of the trans-
portation business, when, in the early part
OF the year 1900, two years before the pas
sage OF the Elkins act. it gave notice that
no more rebates would be paid, and that
all shippers, great and small. would be
placed upon a basis of perfect equality II
had thus inaugurated a movement, which.
and aided later by the passage Of the Elk
ms act, had destroyed vicious system, al
most as old as the railroads themselves,
and which had become so deeply rooted
that many experienced railroad men doubt
ed the possibility Of Graduating 1t.
The management had done other things
that deserved the communication of the pub
lie and OF the press-it had taken the oom-
pany out Of politics and II had done away
with the free-pass evil But the press gem
orally In it's present hostility to the rail-
roads was only falling in line with an anti
corporation public sentiment, which had
been created by some OF the leaders of the
two great political parties who were try
ing to outbid each other for popular sup
port by attacking large vested interests In
discriminatory.
II this course were pursued much longer
1t could result only in undermining cond-
dence. in the suspension Of improvements
and In general business depression, from
which the whole country would suffer.
Good Templar Lodge Meeting.