Every evening, Wilmington daily commercial., 1906-06-04

Philadelphia, Pa, June ALEX
ander j. Cassatt, president Of the Penn
nylvania Railroad Co., who arrived in
New York yesterday morning. from
Europe, on the Hamburg American
liner Amerika, reached Philadelphia
about noon. Shortly after his arrival
the following statement was sent out
on behalf of Mr.. Cassatt by officials in
the Broad Street Station:
Mr.. Cassatt said he had returned
home TO take part in the investigation
by the board of directors of the Penn
sylvania Railroad Company into tho
matters that had been disclosed dur
ing his absence in the proceedings be-
fore the Interstate Commerce Commits
sion. tic 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 ofthe acceptance Of hribes from
coal operators. The board would in
vestigate all such charges exhaustively,
and if any officer or employ should be
found guilty Of corrupt practice he
would be summarily dealt with.
Referring 10 the testimony of certain
officers that they held stocks of coal
companies, and to the inference drawn
by the newspapers that favorism and
discriminationton a 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
e.favoritism, and therefore liable
10 suspicion, was no doubt inadvisahle
and unfortunate, 10 was not an offence
IN itself, II 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 the officers
to aid in the development Of indus
tries along its lines.
The wrong, II any had been done,
was in the alleged favoritism. There
could be no iavoritism in rates, as
shippers Of coal and all other freights
were on an absolute equality; all paid
the full tariff rates without rebate.
Mr.. Cassatt made himself personally
responsible for the absolute correctness
Of this statement
II there WAS any discrimination, 10
could only be in the distribution OF
empty coal cars, and, SO far as he knew,
no proof had been produced that the
officers concerned had been guilty Of
such favoritism. The board would, how
ever, also inquire carefully into these
matters, ana II there had been any
wrongdoing would take proper action,
but u would not sacrifice faithful and
efficient officers 30 manufactured
and mistaken public opinion.
The board would also, no doubt, con
slider the general question Of the pro
priety Of the ownership 10y officers and
employees Of stocks Of coal aud other
companies using the Pennsylvania
RAILROAD Company 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 aggravated by the great increase
m the production of coal, notwith
standing 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.
If the output Of coal should continue
10 increase In the same ratio as in the
past few years, n might not he possible
10 provide sufficient equipment to avoid
= ohNi NNkh AN AAtH NNi Supply ul lliupH.
ln view Of this and of the suspicion
which such ownership would create, of
ficers having Go do with the distribu.
tion Of empty cars ought not 10 own Goa
stocks; but 10 prohibit all officers anc
employees from holding stock of com
panies having business with the Penn.
Eylvania Railroad Company would
practically bar them from investinf
~ the stocks Of companies located
in the State Of Pennsylvania and in Z
half dozen other States. The subject
was Troublesome and complicated.
IL would do no good, but harm. {,
adopt unavoidable and unenforceabl,
regulations. The question must h,
handled in a reasonable and practica
way, and Mr.. Cassatt had no doubt th,
board would succeed in solving it sat
isiactorily and in formulating prone
rules of conduct in this respect for tn,
officers.
Though the testimony before In
commission might disclose instances q
individual misconduct, and though al
effort, seemingly organized. had beef