Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-06-04
Pennsylvania President Re-
turns From! Europe
To Silt Charges Made Against
Officials Of Ms Road.


philadelphia, June S.-A. ]. Cassatt
president of the Pennsylvania Railroad
70. arrived at his home at Haverford,
Pa. a suburb of this city. from Europe
todav. He will be at his office in
Philadelphia tomorrow.
This evening Mr.. Cassatt gave to
The Associated Press the following
statement:
Mr.. Cassatt said he had returned
home to take part In the Investigation
nv the board of directors of the Penn
sylvania Railroad Co, into the matters
that had been disclosed during his aD-
sence in the proceedings before me
Interstate Commerce Commission. ne
had received only brief cable reports
from the officers OF the company anu
knew nothing of the details, but from
these reports and from cables 10 the
london press he had learned that
charges had been made against Ger
tain officials of the acceptance OF
brides from coal operators. The poaro
would investigate all such charges ex-
haustively and il any officer or en-
Move should be found guilty OF cor
r,nt practices he would be summary
death with.
Referring to the testimony OF Ger
tain officers that they held stock OF
coal companies and to the Inference
drawn by the newspapers that favorit-
ism and discrimination of large scale
had been practiced for the benent OF
the companies whose stock were tnus
held. Mr.. Cassatt said that while such
ownership by officers in a position 10
exercise favoritism and therefore llapie
to suspicion was no doubt inadVlsapie
and unfortunate, it was not an oHense
in itself, il the stocks were properly
acquired and was not contrary 10 the
bylaws of the company; In fact the
MANAGEMENT had, in the earlier years
of the company, encouraged the om-
GERS TO aid in the development OF in
dustries along its line.
The wrong, if any had been done,
was in the alleged favoritism. There
could be no favoritism in rates, as
shippers Of coal and all other freights
we've on an absolute equality; all paid
the full tariff rates without rebates.
Mr.. Cassatt made himself personally
responsible for the absolute correct
ness of this statement. II there was
any discrimination. 1t could only be ir
the distribution of empty coal cars, anC
SO far as ne knew no proof had beer
produced that the officers concerned
had been guilty of such favoritism
The board would however also inquire
carefully into these matters and
there had been any wrong doing, woult
take proper action. but 1t would no
sacrifice faithful and efficient officer!
to a manufactured and mistaken pub
lie opinion. The board would also. M
doubt consider the general question o
the propriety. Of the ownership by 9th
GERS and employees of stocks OF Goa
and other companies using the Penn
syivania Railroad Cos. lines and max
ing regulations in relation thereto
There always had been a shortage o
coal cars during periods Of every yea
and in recent years this condition ha
been aggravated by the great increas
in the production of coal, notWith
standing the very large increases tn
company had made to its equipmen,
This had given rise to many complaint
and as a natural consequence
charges of discrimination. If the out
put of coal should continue TO increas
in the same ratio as in the past fe'
years 1t might not be possible TO pre-
vide sufficient equipment to avoid
shortage in the car supply at time
In view of this and Of the suspicio
which such ownership would create, 81
ficers having to do with the distribl
ton Of empty cars ought not to ow
coal stocks, but to prohibit all Officer
and employees from holding stock {
companies having business with II
no
ticany bar them from investing in II
stocks of companies located in II
state of Pennsylvania and in a ha
dozen other states.
The subject was troublesome ar
complicated. 1t would do no good. b.
harm, to adopt unavoidable and unel
forceable regulations. The questic
must be handled In a reasonable al
practical way and Mr.. Cassatt had !
doubt the board would succeed in sol
ing 1t satisfactorily and in formula
ing proper rules Of conduct in this r
spect for the officers
Though the testimony before the col
mission might disclose instances Of /
dividual misconduct. and though an (
fort seemingly organized, had be-
made to place the management in I
most uHidNUTdpl0 uSnt, SdSSatt
serted that the company's affairs we
honestly conducted in the interest Of I
shareholders and with full recogniti
Of its duty to the public. The compa
had in its employment over 100000 m
who In character efficiency and devoti
to its interests, had, In their respect
sphere. no superiors. anywhere. The ma
agemcnt had DIN the past shown Its
entitled to the confidence Of the pub
and 1t Is to be trusted now to deal pro
eriy with the present situation. Mr.. C;
satt thought, too that the managem,
deserved better treatment than it had
ceived from the tpress and particula
from the press d the company's no
state. 1t had rendered an immense $
vice to the public and to the cause
honesty and decency in the conduct
the transportatonf business when in
early part ofs tAef year 1900, two We
before the passage OF the E,kins act
gave notice that no more rebatee wo
be paid and that all shippers. great
small. would be placed upon a basis
perfect equality. It had thus inausur.
movement which, having been joine,