The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1906-06-04
CASSATT Home TO take
part IN INVESTIGATION
OFFICIALS GUILTY OF CORRUPT
PRACTICES TO BE SUMMAR-
ILY DISMISSED.

iOn-DecIares on Whole the PENN
syIvania System is Administered
Honestly--Has Been Taken Out of
Politics--Other Things that Deserve
Public Commentator.
Philadelphia, June 3.-A. ]. Cassatt,
president of the Pennsylvania Railroad
company, arrived at his home at Ha-
verford, Pa, a suburb of this city,
| from Europe to-day. He will be at his
office in Philadelphia tomorrow. This
evening Mr.. Cassatt gave to the Asso-
ciated Press the following statement:
philadelphia, June 8, 1906,
Mr.. Cassett said he had returned
home to take part in the investigation
| by the board Of directors Of the Penn
sylvania Railroad company into the
matters that had been disclosed during
his absence in the proceedings before
the Interstate Commerce commission.
He had received only brief cable re-
ports 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 of the acceptance of bribes
from coal operators The board would
investigate all such charges exhaustive
ly and If any officer or employe should
be found guilty Of corrupt practices he
would be summarily dealt with
Referring to the testimony Of certain
officers that they held stock of coal
companies and to the inference drawn
by the newspapers that favoritism and
! discrimination on a large scale had
been practiced for the benefit of the
companies whose stock was thus held
Mr.. Cassatt said that while such own
ership by officers in position to exer-
else faboritism and therefore liable to
suspicion was no doubt inadvisable and
unfortunate, 1t was not an offense in it,
self, if the stocks were properly ac-
| quired, and was not contrary to the by
laws of the company; in fact, the man
agement had, in the earlier years Of the
| company, encouraged the officers to aid
in the development of industries along
it's lines. The wrong If any had been
/ uOttCb HdG III lAc dliGSCQ lcNUIALASAis
There could be no favoritsm in rates
as shippers of coal and all other
! freights were on an absolute equality;
all paid the full tariff rates without re-
bates. Mr.. Cassatt made himself per-
sonally responsible for the absolute cor
rectness of this statement. If there
was any discrimination it 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 fav-
oritsm The board would, however,
also inquire carefully into these mat
ters and If there had been any wrong
doing, would take proper action, but 1t
would not sacrifice faithful and eff
cient officers to manufactured and
mistaken public opinion The board
would also no doubt consider the gen.
eral question of the propriety of the
! ownership by officers and employees of
stocks Of coal and other companies US
ing the Pennsylvania Railroad COM
pany's lines and making 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 aggra-
waited by the great increase in the pro-
duction of coal, Notwithstanding the
very large increases the company had
made to its equipment. This had Civ
en- rise to many complaints and as a
natural consequence to charges of dis
elimination. If the output of coal should
continue to increase In the came ratio
as in the past few years 1t might not
be possible to provide sufficient equip
ment to avoid a shortage in the car
supply at times. In view of this and
of the suspicion which such ownership
would create, officers having to do with
the distribution of empty cars ought
not to own coal stocks, hut to prohibit
all officers and employees from holding
stock of companies having business
with the Pennsylvania Railroad com
pany would practically bar them from
investing in the stocks of companies
located in the state of PENNSYLVANIA
and in half dozen other states. The
subject was troublesome and compli-
Gated. 1t would do no good but harm,
uliGuIOTCbdDIe
regulations. The question must be
handled in a reasonable and practical
way and Mr.. Cassatt had no doubt the
board would succeed in solving it salts
factorily and in formulating proper
rules of conduct in this respect for the
officers.
Though the testimony before the
commission might disclose instances of
individual misconduct, and though an
effort, seemingly organized, had been
made to place the management in the
most unfavorable light, Mr.. Cassatt as
serted that the company's affairs were
honestly conducted in the interest of
the shareholders, and with a full rec
ognition of its duty to the public. The
company had in its employment over
10000 men, who in character, efficiency
and devotion to its interests, had, in
their respective spheres, no superiors
anywhere. The management had In the
past shown itself entitled to the con-
f1dence of the public and it should be
trusted now to deal properly with the
present situation. Mr.. Cassatt thought.
too, that the management deserved bet
ter treatment than it had received from
the press and particularly from the
press in the company's home state. II
had rendered an immense service to
the public and to the cause Of honesty
and decency in the conduct of the
transportation business when In the