Los Angeles herald., 1906-05-24
HIGH OFFICIALS
TAKE THE STAND
RAILROAD MEN SWEAT" DUR
ING TESTIMONY -.
President cassatt's Assistant, w. A.
Patton, Attempts to Explain How
He Came by Certain
Stocks
BY Associated Press.

BY Associated Press
PHILADELPHIA, May 23.-High
officials of the Pennsylvania railroad
are among the witnesses who will be
examined during the investigation this
week of the interstate commerce COM
mission into the alleged discrimination
by the railroads in the distribution Of
coal cars
The hearings were resumed today.
The present investigation is limited
by the Tillman-Gillespie resolution to
the relations of the railroads to the coal
and oil Industries.
The entire commission sat for today's
hearing.
The first witness was w. A. Patton,
President Cassatt's assistant at Phila-
delphia. He was asked what interest
he had in coal companies. He enu-
merated the various companies in
which he held stock.
Proves Unwilling Witness
Mr. Patton proved an unwilling wit
ness when questioned about his hold
ings in the Atlantic Crushed Coke
company, and repeated efforts were
made by Mr.. Glasgow to draw a posi-
tive statement as to whether he had
paid any actual cash for his 400 shares
in the company.
interested in the land purchasing COM
pany through J. Howard Patton, who
represented the interests of Col. George
II. Huff. When the land was purchased,
he said, the investors were obliged to
pay their pro rata share, but as there
had been no losses it was necessary to
pay in cash.
you got that obligation back, didn't
you?"
"I did in stock"
Were you required to pay anything
toward the purchase of the land?"
II stood to lose. and had it become
necessary would have paid my share"
CockreII Interrupts
Commissioner Cockrell here inter-
rupted saying: at seems to me to be
an easy matter for you to say you went
into speculative deal; that none of
you paid any cash, and that the cor
poration was responsible for the pur-
chase price. ] do not see the necessity
of beating about the bush"
"As a matter of fact" said Chairman
Knapp, you took the risk but did not
lose anything
II was an investor" replied the wit
ness. "and was treated the same as
other investors"
Concerning the Huron Coal COM
pany Mr.. Patton said he thought he had
500 shares, but was not certain, which
he acquired in the same manner as his
holdings in the Atlantic Crushed Coke
company. He was asked if he ever held
stock in the Columbia Coal company.
He said he had at its organization, but
it became a selling company instead of
an operating company and he sold his
stock to Greensburg, Pa, banking
company.
What bank took it?"
''rhe Cassatt bank"
Had Stock in Greenwich Company
In the Greenwich company Mr.. Pat
ton said he had 1000 shares. He said he
was obligated by note to make the
amount $4,000 for the purchase of the
land. The money was guaranteed by
Mr.. Huff's bank at Greensburg. Wit
ness said he got the money back
through the sale of the bonds.
Concerning the Cochran Coal COM
pany Mr.. Patton said there were 5000
or 1000 acres of undeveloped coal land,
and Some of our people, suggested
to Thomas Cochran the desirability of
developing it.
Asked what he meant by "some of
our people, the witness said bankers
and brokers and others who might be
interested in the development of the
land Mr.. Patton said he was obligated
to the amount of $4,000 in the organiza-
tion of this company Thomas Cochran
going on his note He acquired 500
shares in the company, but paid no
interest on the note.
Also Stock in Coal Companies
The examination of Mr. Patton de-
veloped the fact that he held stock in
a dozen coal companies, 6140 shares OF
which, with a par value of 1907 ,000 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 E. Huff such an enormous
amount of stock?"
Mr.. Patton said he was born in west
ern Pennsylvania and had been life
long friend of Col. Fluff.
Friendship" he said, "goes a good
way. These stocks were not given me
for any favors might be able to do
the companies"
"Were your superior officers aware
that you owned this stock?" asked Mr..
Glasgow.
'I think Mr.. Roberts and Mr.. Thomp-
son were"
"And Mr.. Cassatt?'
'I judge so. 1t was generally known"
A. w. Gibbs, general superintendent
of motive power at Altoona, followed
Mr. Patton. He said he owned no stock
and was in mo way interested in any
coal company.