Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-04
CASSATT MAKES STATEMENT
Comes Home to Take Part in Investigation
Of Pennsylvania Affairs
MATTERS TO Be GONE INTO THOROUGHLY
n Wrong Has Been Done Guilty VIII
BE Punished. hut Faithful EN-
plOyes WIN Not BE Sacrificed
to Public CIamor.

president of the Pennsylvania Railroad
company. arrived at his home at Haver-
ford, Pa. suburb of this city, from Eu-
rope about noon today. He will be at his
Office in Philadelphia tomorrow morning
This morning Mr. Cassstt gave to the AS
ciated Press the following statement.
Mr. Csssatt said he had returned home
to take part in the Investigation by the
board OF directors OF the Pennsylvania
Railroad compsny into the matters that
had been disclosed during his absence in
the proceedings before the Interstate Com
merce commission. He had received only
brief cable reports from the Office OF the
company and knew nothing of the de-
tails. but from these reports and cables
to the London press he had learned that
charges had been made against certain
officials Of the acceptance of bribes from
| coal operators. The board would investi-
gate all such charges exhaustively, and II
any officer or empIoye should be found
guilty Of corrupt practices he would be
summarily dealt with.
Referring to the testimony Of certain
officers that they held stocks OF coal COM
panles and to the inference drawn by the
ination on a large scale had been prac-
ticed for the benefit of the companies
whose stocks were thus held, Mr. Cassatt
said that while such ownership by officers
in position to exercise favoritism and
therefore liable to suspicion was no doubt
! inBdvisable and unfortunate, II was not
an offense in itself, if the stocks were
properly acquired, and was not contrary
| to the bylaws of the company; in fact,
! the management had in the earlier years
of the company encouraged its officers to
| aid in the development of industries
along it's line. 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 equality; all paid
the full tariff rates without rebate.
Only One Chance,
Mr.. Cassatt made himself personally re-
sponsible for the absolute correctness OF
this statement. II there was any .discrim-
ination it could only be I'm the distribution
of empty coal cars, and so far as he knew
no proof hf | been produced that the Of
/ ticers' concerned had been guilty of such
favoritism. The board would. however.
also inquire carefully into these matters
and IL there had been any wrong doing
would take proper action. but it would not
| sacrifice faithful and efficient officers to
a manufactured and mistaken public opin-
| ion. The board would also, no doubt, con-
slider the general question of the proprfety
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 ag-
gravated by the great increase in the pro-
duction OF coal, notwithstanding the very
large increases the company had made in
its equipment This had given rise TO
many complaints, and as a natural Sc
quence TO charges of discrimination II
the output Of coal should continue to in
crease in the same ratio as in the past
few years it might not be possible to pro-
vide suficient equipment to avoid short
age in car supplies In view OF this and
the suspicion which such ownership would
create, officers having to do with the dis
tribution 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 stocks of COM
panies located in the state of Pennsylvania
and in a half dozen other states.
subject il Complicated.
The ssbject was troublesome and COM
plicated II would do no good, but harm,
to adopt unavoidable and enforceable reg
ulations. The question must be handled
in a reasonable and practicable way, and
Mr.. Cassatt had no doubt 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 COM
mission might disclose instances of indi-
vidual misconduct, and though an effort
seemingly organized, had been made to
place the management in the most un-
favorable light. Mr. Cassatt asserted that
the company's affairs were honestly con.
Quoted in the interest of the sharehold-
ers and with a with a full recognition OF
it's duty to the public The company had
in its employment over 10000 men, who
in their respective spheres had no su-
periors anywhere. The management had
in the past shown itself entitled to the
confidence of the public, and 1t should
be trusted now to deal properly with the
present situation, Mr. Cassatt thought
too. that the management deserved better
treatment than it had received from the
press, and particularly from the press OF
the company's home state. n had rem.
dered an immense service 20 tha public
and TO the cause Of honesty and decency
in the conduct Of the transportation buaI
ness, when, in the early part OF the yea,
1900 two years before the passage OF the
Elkins act. il gave notice that no NOR,
rebates would be paid and that all ship
pers. great and small, would be placed
upon a basis of perfect equality. II hat
thus inaugurated movement which
having been Joined In by other railroads
and aided later by the pasEage OF ths
Elkins act. rad destroyed vicious Sys,
tenn almost as old as the railroads them.
selves. and which had become so deeply
rooted that many experienced railroad
men doubted the possibility Of eradioatinl
II. The management had done Other
things that deserved the commentator
OF the public and OF the press Il had
taken the company out OF politics and II
had done away with the free pass evil
But the press generally, in its hostility
toward the railroads. was only falling IN
line with an anu-corpOration public senti.
ment which had been created by some
. OF the leaders OF the two great political
parties. who were trying to outbid eact
other for popular support by attacking
, | large vested interests indiscriminately