The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1906-05-29
GRAFT HONEYCOMBS THE
PENNSYLVANIA RAILROAD
High Officials Of Road So Testify
In Federal Investigation.
DIRECTORS ORDER AN INQUIRY
William A. Patch, Assistant 10 Press
ident cassat,; Vice. President
Rea and Clerk Purviance Wealthy
Through Free Coal Stocks.


Philadelphia. Further revelations
concerning stockholdlngs in soft coal
mining companies by officials Of the
Pennsylvania Railroad were made
when the Interstate Commerce Com
mission resumed its investigation into
the alleged discrimination by railroads
in the distribution of coal cars.
William A. Patton, assistant to Pres.
ident Cassatt, admitted that without
the expenditure of one penny he Is to-
day in possession of $307, 900 worth Of
coal mining stock, gotten while he was
an officer of the railroad company and
without the expenditure Of energy or
effort.
Mr.. Patton was by no means the only
witness through whose admissions the
system of graft prevailing in the Penn
sylvania Railroad was thrown into
prominence, for many others told the
same tale. A notable case was that of
]. NJ. Purviance. chief clerk to Mr..
Patton, who through friendship with
Mr.. Patton and Colonel Huff, a coal
operator and promoter, has now about
$4,000 worth Of coal stocks which cost
him not cent. just what he did for
them the witness failed to tell very
clearly, the main feature of his evil
dence, like that of his chief, being an
indistinct recollection.
First Vlce-P President Green and Third
Vice. President Samuel Rea were also
witnesses. Captain Green attempted
to justify the system, at the existence
Of which, few days ago, he expressed
great surprise, and which he promised
to investigate
MIR Green does not possess and never
did possess any coal mining stock, and
this fact led Chairman Knapp, of the
commission, to ask the witness If his
failure to have stock in coal companies
did not lead his subordInates to believe
him eccentric.
Here follows a summary Of graft
stocks that the recipients swore they
pocketed:
William A. Patton, first assistant to
President Cassatt, got this coal stock:
2500 shares Keystone, 400 shares At
lantic Crushed Coke, lao shares Luz
cesco, 500 shares Huron, 500 shares
Howard, 100 shares Apollo, 1000 shares
Greenwich. 500 shares Cochran, 200
shares Latrobe, 500 shares Henrietta,
1000 shares Connellsville-T340 shares,
valued at $4,000.
Third Vice President Samuel Rea got
1000 shares Greenwich, 400 shares La
trobe- ConneIlsville 100 shares Acme
1900 shares and bonds, valued at $751;
600
Theodore N. Ely, chief of motive
power, got 153 shares, valued at $1,000.
Purchasing Agent Daniel Newhall
got 100 shares, valued at $4,000.
]. NJ Purviance, chief clerk to Will
lam A. Patton, got no shares, valued
at $3S,500
All is virtually admitted to have been
downright graft, If not blackmail.
This, added TO 1924 shares, par value,
1891, 200, already admitted to have been
pocketed by seventeen other Pennsyl-
vania officials and employees, totals
$S97, 800, and the surface, according to
William A. Glasgow, counsel for the
commission, is only scratched.
Chief Assistant Patton swore that
his superior officers, including Presi-
dent Cassatt, had known for years that
he held the stock and had never pro-
tested.
Sworn evidence Of fragrant discrim-
nation on the part Of the Pennsylvania
Railroads distribution Of cars among
coal producing companies was also
forced on record.
News OF their admissions reached the
Pennsylvania directors in session at
the Broad street Office Of the company
and compelled them to take action.
AS result, Directors @. Stuart Pat.
terson, James McCrea, u. B. Morris,
w. H. Barnes and Thomas Dewitt
Cuyler were chosen a special commit.
tee to probe the graft charges.
At this meeting of directors the re
tirement, January l, Of Robert Pit.
cairn, Cassatt's assistant at Pittsburg,
was announced. Pitcairn got a lot OF
free coal stock.
AS result of the investigation,
minority stockholders Of the Pennsyl
yania Railroad are considering plans to
bring about thorough probing
through the State Legislature. Such
an investigation would include details
of the contracts for steel rails, loco