The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-24

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MT The horFt ~ difertufs Ne investigating
this matter
That srYas d~'sorimipntipn sas pfscttsed
IN tho matter ~ cas dislribut ION by tho
IenhH, lyauia Railroad ~ late ~ igs. aud
that The Keystone Coal %Cotnpany and The
BefNind. White crfnt any. the two large COS.
fnfatione generally kno VII IN the coal feeiona
a. tho 'Casuat, c~on'Tanica- were The oasa
that heneHted from this discrimination
was shown by N" testimony ~ a. A.
bhoh. general manager ~ the Columbia
Coal ComrSny The Columbia Coal Conn
pany vas forcrd to sell soIne oi Ia holdings
In order TO purchase private cars because
II could got no cara from the railroad
Not alone were 5o cars a day arbit rarily
se, aside for the Bcrwlnd- White Coal Com
pany, hut In order that there should be no
possibility Of tbs. company not always
having its 5OO carr nearly every night 300
cars were kept in reserve. This was az a
time when all coal operators we're begging
for cars and when coal was selling at tho
highest figure II was ever known 20 bring.
At the morning session william A, Patton,
assistant to President tassatt. was the
first witness. Nr. Glasgow ~propounded
the questions.
MIR. Patton. nave you any interest in
coal properties?"
Il hold stock in the keystone. Atlantic.
Lucesco, Huron, Howard. Apollo. Iatrobe-
Connellsville, Greenwich. Cochran, Latrobe
and Henrietta Coal and Cooke ompanies,"
Have you any interest in the Columbia
Coal Company mo. When it ceased
to be an operating company and became
q selling company / sold IL 10 Cassatt Il Co."
What are your holdings Of Keystone
Coal and Coke Company" q have 1850
shares, at $50 a share par
What did it cost your"
Most of it came to pe thro ugh stocks
of other companies which were merged into
the Keystone. Those companies were calle1
HUFF Companies, prom oted by Congress-
man George +. HUI. Col. Huff often ave
me opportunities for profitable s~peoula-
ton"
What is your interest In the Atlantic
Crushed Coke Company Il have 400
shares, the par value OF which is $50 q
share"
what did they cost you?' Il went into
the company at the start and helped to
organize it. For my efforts / got 400 shares,
which / consider full paid
Senator Cockrell interrupted with: you
got q block Of stock you didn't pay for?'
But ] stood ready to pay
4Oh, yes" returned Senator Cockrell
impatiently, but the world might rave
come to an end before that was necessary
Mr.. Patton then caught sight of a quartet
Of camera men with their lenses pointed at
him. Rising to his full height in the stand
and pointing his finger at the Photographic
battery, he shouted:' "It,is an outrage that
l should be subjected to this
The spectators waited eagerly, and Patton
looked triumphant.
"YCu were abcu tosay, Mr. Glasgow
said Senator Coekrell with the ~faintest
suggestion Of a drawl, and the hearing went
1t was brought out that in every instance
Mr.. Patton and his friends had organized
the coal company, had divided the stock
among themselves and had issued bonds
to raise the money for operation, so that
the stockholders got their stock for nothing.
The bonds were generally sold to farmers
through loca! banks. The only risk taken
by Mr.. Patton and his friends was that the
companies might fail to earn enough to
pay interest on the bonds and give the
profit, but in no instance did
this occur. These smaller companies were
in turn consolidated and rebonded, adding
TO the profits of promotion. Some of them
sold goal to the Pennsylvania Railroad, and
all Of them were so located IA to receive
favors in the distribution of cars.