Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-30
No VIOLATION Of Law
Expected as a Result of House
Resolution.
PENNSYL LVANiA RAILROAD
It's Ownership in Other Roads is Com
mon knowledge.
DIRECTORS ON SEVERAL BOARDS
Was Testified to Before Senate Com
mittee-Facts From the
Report of 1904.
DIRECTORS ON SEVERAL BOARDS

1t is not the opinion of well-informed per-
sons in Washington that the resolution
yesterday adopted by the House will de-
velop any facts indicating that the Penn
sylvania Railroad Company is violating the
Sherman law. The ownership by the Penn
sylvania of stocks of other railroads has
been well known to the interstate commerce
commission, and presumably to the De-
partment of Justice, and no steps have
been taken to question the legitimacy OF
the status
1t is pointed out, too, that the Pennsyl-
vania company does not own the majority
stock of competing roads. The fact that
the same directors serve on the boards OF
more than one Of the roads Is common
knowledge and no exception has been taken
to it. On the contrary, the practice was
virtually legitimatized by one of the inter
state commerce commissioners, in the hear
ing before the Senate committee last sum
mer. He said then:
II am not trying to impugn any man hero
because he is on two or three of these
boards That is under the law and 1 sup
pose that it is legitimate. Mr.. Clements
expressed the opinion that it was a llmlta-
ton upon competition, but did not charge
that it was unlawful.
Ownership of Stock.
The testimony before the commission
showed the division OF stocks to be as fol
lows:
Report for the year ending June 30, 1901
Capital stock outstanding: Pennsylvania
Railroad Company, $296, 1904 $50; Pennsyl,
vania Company, $4o,00o,oO0; Baltimore and
Ohio Railroad Company, 1872; Ches-
apeake and Ohio Railway Company, $G2,
7go 400: Norfolk and Western Railroad
philadqlnbia
more and Washington Railroad Company
S23. 575; Northern Central Railway
Company s11, 49,, 800 OF the stock of the
Pennsylvania Company, s40,e0o,000, the
Pennsylvania Railroad Company owned
$40, COO eco; of the stock of the Baltimore
and Ohio Railroad Company, S4,244, ,S12
the Pennsylvania Railroad Company owned
S51, 1880, the Pennsylvania Company
owned S16,044, 600 the Philadelphia, Balti-
more and Washington Railroad Company
owned $17Sl, 500 and the Northern Centra
Railway Company owned $1,Isl 500 of the
stock of the Chesapeake and Ohio Railway
Company, So, ,79o, 400, the Pennsylvania
Railroad Company owned $40, 10000 the
Pennsylvania Company owned $4,000,00O anG
the Northern Central Railway Company
owned S1,5o0,o00; of the stock of the Nor
folk and Western Railway Company. $780,
600, ,0oO the Pennsylvania Railroad Company
owned S23, 10000, Pennsylvania Company
owned S6.500,0C0 and the Northern Central
Railway Company owned $1,5O0.000 of the
Washington Railroad Company, $23, 494 ,575
the Pennsylvania Railroad Company owned
S23, 132, 200 and the Northern Central Rail
way Company owned S352, 200; OF the stock
of the Northern Central Railway Company
S1J 800, the Pennsylvania Railroad Com
pany owned 9,401 $50
Analysis of Directors.
"It appears that the members of the
boards of directors of certain railway COM
panies. mostly in the Pennsylvania railroad
system, as given in their reports for the
year ending June 80. 1904. aggregated syo.
Ar analysis OF this number shows that 157
6irectorships were held by 157 persons on
board only, 63 directorships We're held by
26 persons on from 2 to 5 boards, 175 di-
rectorships were held by ID persons on more
tLan 5 boards, distributed as follows: One
person held "a. l person held II. person
held IL. person held 10, / person held ~.
person held IA, ! person held Ii, person
held 10, | person held IL, person held q,
person held s. / person held 8, / person
held Z. 13 persons held I75.''