The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-08
REBATE REFORM PROFITABLE
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i..,.,. sui, tirr q fhH' neih"r
rar Iuasl0ab Iaairr y" ot"v
.r..b n,i lrer admittedly hfrk"r
.,.wrfui 'hs POM s]vly1n'a Rail
rp ,s, mtrh ',lk"t ~ rrtati"
., ..r rr,otirp ~ rriH'rs w lafsr
..f lhnt th- consideration vas
.f.Iuirry tta tho admission made
.. t. iniofs'tfc Co,utnefte tutumia-
.. Wy .inmes Nct'rrn prnsiIrn,
l.uu.vIy,nn limos vet " FittslntR
........u ~ which ~ NcCrea m.
,.aa WIS ustrd Nv almost The rVict
.. ,, u..i ihuvr
I.. uI,Ii NrC ra admitted that,
.ir.r ~ this anti rebate policy
,..ur whom tho railroad. Nv getting
o.,.. r.r. u.ll-, a'ppd NJ rossihl" chance
..r nv .Irh - policy, IN fact tho
,..,... # tho policy against rebates at
..,, ,..r lru1 according 10 the witness.
~..rl..I OBJ, railroad 10 got higher rntcs
,r r. ,r o-rrr'ation II ma,e money
.,t.,U.lnr rchaI"a
+, vi.. according 10 Mr. McCrea, the
c,r,,nr ont II the community 81 inter-
e.t- rolcy. ' that Is, getting control Of the
EsaIrng, tho Baltimore and Ohio. the Chesa-
reako and Ohioa and the Norfolk and Western,
a. vol ~ the Pennsylvania lines west Of
ptft-nIrg, that placed the Pennsylvania
Railroad where 1t could dictate to shippers,
lnstoId Of granting rebates To shippers
who's BUSINESS competing railroads had
tepn trying to capture. A the Pennsyl-
wanna enjoyed a monopoly, there was no
reason for concessions,
In answer to a question Of Commissioners
Clements whether the law against rebates
could not have been obeyed, Mr., McCrea
rather cynically said:
"ln my opinion, no law alone could stop
rebate giving. Rebates were a necessary
condition at that time il a railroad did not
want III business carried away from it,"
II was als) announce by Mr.. McCrea
that he has resigned from the investigating
committee of the board of directors Of
the Pennsylvania Railroad. He gave az
the reason for this action that at the request
Of the Pennsylvania lines west Of Pittsburg
they were to be included in the proposed
investigation. Il did not want to be in the
position of investigating myself-that is,
the lines under my direct CONTROL said
the witness.
President Cassatt's name as an owner OF
coal stock also appeared in the examination
of Mr.. McCrea. who after testifying that
he had held some stock in the Milward
Coal Company, this stock being inherited
from his father, said that President Cassatt
also held some stock in this company. He
testified that about a year ago Mr.. Cassatt
had sold this stock to Robert X. Cassatt,
his son. and to John Lloyd and Gardiner
Cassatt. his brother, h comprise the
banking firm Of Cassatt & Co.
You do not know how Mr.. Cassatt got
his stock?" inquired Lawyer Glasgow.
Il do not, /" was the answer
Mr.. McCrea made the assertion that tn e
Baltimore and Ohio is controlled practically
hy an executive committee Of the Penn
S~yivania board Of directors. According to
Mr.. McCrea. they are Vice. President Green,
Nice-President Rea and Vice-President
McCrea OF the Pennsylvania, President
Oscar G. Murray and Vice-President Ran
aolph Of the Baltimo re and Ohio.
II was announced to-day that President
Casaatt had peremp torily dismissed Chief
Clerk joseph B. Boyer, who on Wednesday
confessed to having got more than $6l 900
from coal companies as a return for giving
them orders for company coal. Mr.. Cas-
satt ignored the company investigating
committee and fired Boyer on the strength
of the testimony before the commission.
When asked why similar action was not
taken against the scores of other officials,
high and low, against whom the evidence
before the commission was Just as con-
vincing, Vice-President Pugh said that their
cases were ones that the %company's in
vestigating committee must pass upon.
1t was pointed out that Boyer is the only
employee whose graft was taken from the
railroad itself, it having been testified that
the company would nave gotten coal cheaper
If his percentage had not been necessary.
The other offenders, although their graft
goes up into the hundreds of thousands.
merely maoed the public, the railroads
patrons and the coal operators.
At the close OF the days session the name
Of President Cassatt was again brought to
= the front ina most sig nificant way. E. P.
Williams of Ridley Park, purchasing agent
for the Baldwin Locomotive Works, testified
that he had been instructed about 1901 from
the front" to purchase the bituminous
coal used by the Baldwin company from
the Keystone Coal and Coke Company,
which is owned by the Cassatts and which
is one of the railroads. chief ~favorites.
did you ever have anybody to tell you
TO buy Of the Keystone company" asked
Mr. Glasgow. yes, sir, somebody told me
to do So"
well, who was it," John H. Converse.
senior partner Of the Baldwin company"
did Mr.. Converse tell you to buy coal
from the Keystone people because the
Pennsylvania Railroad bought equipment
from the Baldwins?" Il cannot remember
that Mr.. Converse used those words. l
DO know however, that that is the inference
! got from his instructions"
q. l.. Porter Of Greensburg, an indepen-
dent operator, told a pitiful story of his
unsuccessful efforts to get cars to carry his
product, while the favored companies
were reaping a harvest.
William W. Patterson, a large operator,
made an even stronger ~arraignment against
N" Baltimore and Ohio for practising the
same discrimination against him. After
three years Of f~ruitless struggle against
the system Mr., Patterson said that he had
to sell a bituminous operation on the lines