The Birmingham age-herald., 1906-05-24
Without Cost.


 The examination of MT. Patton de- veloped the fact that he held stock in a dozen coal companies, GAO shares of which. with a par value of ,000 he had ac quired without payment In addition he owned 700 shares which had been paid for. Mir Patton was asked if the business of the Keystone Coal and Coke company had not increased greatly within the past few years. He said it had. but believed the business of other companies had advanced approximately.
 How do you explain the fact, Mr. Pat ton?' queried MT. Glasgow, that you acquired principally through George H. Huff such an enormous amount of stock?'
 MT. Patton said he was born In western Pennsylvania and had been a lifelong friend of Colonel Huff.
 'Frendship," he said, "goes a good way. The stocks were not given me for any favor; I might be able to do the company some good Some years ago the Pennsyl- vania Railroad company had encouraged the development of the soft coal lands. Then it was not considered crime as it appears to b9 now for a railroad man to hold stock in coal company"
 Were your superior officers aware that you owned this stock?" asked MT. Glas- gow.
 q think MT. Roberts and MT. Thompson were"
 And MT. Cassatt?'
 ''I judge so: it was generally known"
 The relations of Colonel Huff with the Pennsylvania railroad officials generally, MT. Patton said. were pleasant.
 Commissioner Clements asked the wit ness if he did not think there was danger of discrimination when railroad officials held coal companies stock He admixed that there might be an element of danger. He said the railroad company did not In the early days discourage the system of officials joining the organization of mining companies.
 Are they discouraging the system now?"
 ''I can't say but I judge so.
 How is it manfested?"
 ''I have seen no manifestation of it.
 Distribute Stock.
 In answer to a question by Chairman Knapp, Mir. Patton said it had been the general custom in the soft coal region to organize companies by distributing the stock and paying for it out of the profits
 A. W. Gibbs, general superintendent of motive power at Altoona, followed Mr. Patton. He said he owned no stock and was in no way interested in any coal com pany.
 The commission then took recess
 D. s. Newhall purchasing agent of the Pennsylvania railroad. the first witness of the afternoon session, testified that he held eighty shares of stock in the La trobe-C Connellsville Coal company, which he received in exchange for stock of the Superior Coal company, twenty shares of the Valley Coal company and twenty shares in the F'reeport Coal company. The stock was originally acquired with money borrowed and by agreeing to share in the profits and losses.
 ..I desire to say" the witness explained, "that as purchasing agent of the Penn sylvania railroad, l disburse millions of dollars monthly to more than 300o com panies and firms, and l have no interest fin or connection with any beyond the few coal company stocks I have mentioned"
 Theodore N. Ely. chief Of motive power of the Pennsylvania railroad, said he owned stock in several companies which he paid for at par. He stated further that for a number of years he purchased fuel coal for the railroad and felt that in that position he should not connect him self with any coal company.
 Also Had Shares.
 J. N. Purviance, chief clerk to William A. Patton, testified that he held 1lO shares of coal stock distributed among the Keystone Coal company, the Latrobe- Connellsville company. tine Howard Gas Coal company, the Huron company and the Luchio company. By continued ques- tioning MT. Glasgow developed the fact that Mir Purviance held TO shares valued at s3S, ,50O for which he paid no cash. The witness said that through MT Patton and Colonel Huff he acquired stock when the were organized by helping to promote them.
 J. K Johnson, superintendent of the Tyrone division of the Pennsylvania testified that he was not In any way in- terested fin any coal company. When asked If any one had ever offered him i. ho iod hat it