Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1906-05-24
Railroad Grating.

How railroad officials become million
aires on salaries OF a few thousand a
vear, was made plain last week by the
by the Interstate Com
merce Commission sitting in Phila-
delphia, in accordance with n resolution
adopted by Congress some time ago.
Several of the, officials of the Pennsyl-
vania Railroad company acknowledged
to securing cash or stock in the Goa.
companies or both for seeing that the
favored companies were promptly
furnished with an abundant supply OF
cars for the transportation OF Their
product.
It was shown that the freight car
service was governed by methods OF
bribery and corruption; that an adequate
service was given to those OF the coal
companies that made gifts OF stock or
money to the railroad officials and that
the smaller companies were handicapped
and their business destroyed by dls-
crimination against them in the matter
of furnishing cars.
The charges of discrimination and OF
bribery were specific, were supported
by direct testimony and were even, IN
some cases, admitted by those against
whom they are preferred. One division
superintendent acknowledged without
reserve and seemingly without con-
sciousness of the ignominy OF his posi-.
tion. that he received thousands OF
dollars worth of stock in the shape OF
Gifts from seven different coal COM
panies desiring special favors. Another
official confesses that he received
check for $50 every month from one
coal company, and that he had been
favored with gifts of stock from several
others. In yet another instance, the
president of a coal company deposes to
having sent his check for $4,000 to
railroad superintendent who Is alleged
to have insisted upon receiving money
instead of stock.
One avowal by railroad official is
the most startling exhibit of the corpo-
rate relations toward public policy.
That was the declaration that the
management as a rule declined to
furnish switches to new mines because
the coal production is large enough al
ready. In other words, the railroad
management arrogates to itself the
mower to restrict production and forbid
the development of new industry. Ii a
Legislature should enact such a law it
would fall under the ban of condemna-
ton. If an executive should make an
edict of the sort he would be written
down in history as stupid despot,
Rut corporate MANAGEMENT has reached
the height where it enacts what con-
stitutional government dare not under
take, namely, the limitation Of industry
lest the people might get the fuel TOO
cheaply.
Such revelation puts before the in
telligent public the question what Is to
be done. There has been a protest
against drastic regulation. But what
sort of regulation can be so drastic as
forbidding owners of coal lands to de-
velop their property is something for
the exponents of corporate ideas to ex-
plain.
Vice President Green, in the absence
of Mr.. Cassatt, has issued the following
1.-The recent developments at the hear
ing In progress by the Interstate Com
merce Commission in this city in re-
spect to the acquisition and ownership
of the stock of coal companies and the
acceptance of gratuities by its employees
are a surprise to the management.
While it is not believed that these have
caused injustice to the public or to the
company, the facts with respect thereto
will be thoroughly investigated and nc
ownership or practice calculated In any
m amer to affect the full and impartial
duties owed by the company, its officers
and employees, to the public will be
tolerated"
The hearings were continued yester-
day with all the railroad officials ex
cepting President Cassatt, who is in
Europe, subpoenaed.
William A. Glasgow, counsel for the
commission, said that the $500. 600 IN
coal stock. which, it has been testified
was received by 13 officers of the road,
was only an index Of the system OF
s.~s..-.a.1a-: e. 6lasgcW said at Least sts-9
| had hecoma multi- milliOnalreS.