New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-24
HOLD MUCH COAL STOCK
HIGH P.R.R. MEN ON STAND
Company AppOints Inquiry Com
mittce-Its Methods Defended.

morning stockholdings in soft coal mining
o,mpauies by officials of the Pennsylvania Rail-
-osd we're made to-day when the Interstate
rommerce Commission resumed its investigation
cato the alleged discrimination by railroads in
IRE distribution of coal cars.
Three high officials of the railroad First Vice
president John P. Green, Third President
samuel Rea and William A. Patton. assistant
% President Cassatt at Philadelphia. were the
important witnesses of the day Mr.. Patton was
under examination the greater part of the morn
spg and was an unwilling witness. Mr.. GIas-
COW. attorney for the commission. however,
brought out the fact that Mr. Patton had ac-
cu,red stock the par value OF which was S3O7,-
OeO IN various coal companies without cost TO
himself Mr. Patton explained. however that
he had signed notes obgating himself for his
share Of any losses in the organization Of some
of. these companies. and declared his belief that
Il was proper for him 10 accept the stock under
those conditions
Vice-President Rea read a statement in which
be explained all Of his stock transactions. say
snr that he did not believe he was debarred from
such ownership because of his connection with
the railroad company. Mr. Rea said that most
of his stock acquired through his associa-
tons with land purchasing syndicates, which
took up the coal properties for development.
Vice President Green said that twenty or
thirty years ago # was not considered improper
for an official Of the railroad to own coal stock
but that conditions had changed and such hold
ings might not now he regarded in the same
light as formerly. He informed the commission
that the board Of directors of the Pennsylvania
Railroad acting on the information that had
been brought out the hearings. had appointed
to-day committee of five directors to make an
Investigation into the connection of its officials
with coal companies. Mr. Green said he did
not own dollars worth Of coal company stock.
Chairman Knapp ex-senator Cockreu and
Judson c. Clements conducted the hearing. Mr.
Clements left here tonight for Cleveland, where
he win join Commissioner Prouty TO conduct
the hearings in the oil investigation beginning
tomorrow.
MR.. PATTON ON STAND.
The first witness called was Mr.. Patton. He
enumerated the various coal companies in which
he held stock. nut proved an unwilling witness
when he was examined about his holdings in the
Atlantic Crushed Coke Company. The exam
nation resulted in a tilt between the witness
and Mr.. Glasgow. The controversy occurred
after repeated efforts had been made by Mr.
Glasgow 10 draw from the witness a positive
statement as 70 whether he had paid any actual
CeSn Tor MS louT hundred SHARES IN the COM
pany Mr Patton explained that he became
Interested in the land purchasing company
through J. Howard Patton. who represented the
interests Of Colonel George J. Hut. When the
land was purchased. he said. the investors were
obligated 10 pay their pro rata share but as
there had been no losses it was not necessary to
pay in cash
You got that obligation back. didn't you?"
Il did in stock"
We're you required To pay anything toward
the purchase of the land?'
7 stood 10 lose, and had it been necessary
would have paid my share
Senator Cockrell here interrupted saying: 1T
seems 10 me to be an easy matter for you to say
you went into a speculative deal; that none Of
you paid any cash and that the corporation was
responsible for the purchase price. I don't see
the necessity Of beating about the bush"
AS a matter Of fact" said Chairman Knapp
you took the risk, but didn't lose anything"
= was an investor" replied the witness and
was treated the same as other investors"
Concerning the Cochran Coal Company. Mr.
Patton said there were three or four thousand
acres Of undeveoped coal land and some Of our
people' suggested 10 Thomas Cochran the de-
stability Of developing il. Mr.. Patton was
obligated for $4,000 in the organization Thomas
Cochran going on his note He acquired five
hundred shares in the company but paid no
interest on the note.
MUCH STOCK COST NOTHING.
The examination finally developed the fact that
h held stock in d dozen coal companies G14O
shares Of which. with par value Of $3O7. 600. he
had acquired without payment In addition he
Owned 700 shares which had been paid for
How 90 you explain the fact, Mr. Patton"
queried Mr. Glasgow, that you acquired prin-
cpallv through George F. Huff such an enor-
nous amount Of stock?'
Nr Patton said he was born in Western PENN
eylFania and had been a lifelong friend Of Colo
nel Huff. Friendship he said goes a good
way These stocks were not given me for any
faVors 7 might be able TO do the companies
Some years ago the Pennsylvania Railroad Com
pany had TO encourage tho development of the
sot coal lands. Then Il was not considered a
crime, aF il appears TO be now, for a railroad
nan to hold stock in a coal company. 1 have
never attempted TO conceal my ownership of coal
company stock"
Were your superior officers aware that you
owned this stock?' asked Mr.. Glasgow.
judge 50; il was generally known"
Commissioner Clements asked the witness if
ne did not think there was danger Of discrimi-
nation when railroad officials held coal company
STOCK He admitted that there might be an ele-
lhent Of danger. He said the railroad company
cla not in the early days discourage the system
VI railroad officials Joining and organizing min
Ing companies
Are they discouraging the system now?'
can't say, hut I judge So"
How Is II manifested?'
have seen no manifestation Of it
IN answer 70 J. question by Chairman Knapp
ar Patton said it had been the general custom
N The soft coal region to organize companies by
distributing the stock and paying for it out of