The Topeka state journal., 1906-05-23
High Officials in Pennsylvania
System Called.
Appear to Answer Charges of
Discrimination.
PRY INTO THE SECRETS
win Try to Find Out More
About Coal Carrying Deals.
Revelations of Past Week Point
to Conspiracy.

Philadelphia, Pa, May 2S.=High
officials of the Pennsylvania railroad
are among the witnesses who will be
examined during the investigation this
week of the interstate commerce
commission into the alleged discrimi-
nation by the receivers in the distribu-
ton of coal cars The proceedings
were resumed today.
The revelations last week when a /
number of Pennsylvania railroad Of
ficials admitted accepting gifts of stock
in various soft coal mining companies
impelled the commission to subpoena
more important officers in an effort to
determine the extent of the secret !
business relations alleged to exist be-
tween the railroad and certain coal
companies.
The witnesses to be examined dur
ing the hearings this week include
Captain John P. Green, first vice presi- |
dent of the Pennsylvania railroad; |
William A Patton. assistant to Presi- |
dent Cassatt at Philadelphia; Robert |
Pitcairn, assistant to President Cassatt
Huff, president of the keystone Coal
and Coke company; John Lloyd presi- |
dent of the Columbia Coal Mining
company; J. Howard Patton, coal
man and a brother Of William A Pat
ton; Theodore N. Ely, chief of motive
power; J. K Newhall, purchasing
agent of the Pennsylvania railroad; ].
K Johnston, superintendent of the
Tyrone division; Victor Wirman, su-
perintendent of the AnbOy division; J.
N. Purviance. chief clerk to William
A Patton; c. A. Wood chief clerk to
/ the general superintendent; David
/ Steele, assistant trainmaster, Pittsburg
4 division; A. E. Fitlock, Charles Culp
H. c. Hunt and c. A. Busch.
AS result of the investigation
minority stockholders of the Pennsyl-
vania railroad are said to be consider
/ ing plans to bring about more thor
ough probing through the state legis-
1 lature. Such an investigation would
include an inquiry into all the details
/ surrounding the contracts for steel
rails, engines and other equipment
/ present investigation is limited by the
1 Tillman-Cz Gillespie resolution to the
relations of the railroads to the coal
and oil industries.
Patton ON the Stand.
The entire commission sat for to-
days hearing. The first witness was
w. A. Patton, President Cassatt's as
sistant. He was asked what interest
/ he had in coal companies. He enume-
rated the various companies in which
he held stock. Concerning the Key
stone Coal company shares, of which
/ 2,500 were in his name. he said he
got the stock by purchase and
through the merging with the Key
stone company of smaller companies
in which he was interested. Five
/ hundred of the shares, he said, be-
! longed to his brother J. Howard Pat
ton. who is interested in coal proper
ties in western Pennsylvania Mr.
Patton explained that he held stock
| in five companies which were con-
sOlidated with the Keystone and
through that transaction secured his
holdings in the Keystone company
Mr.. Patton proved an unwilling
witness when questioned about his
holdings in the Atlantic Crushed Coke
company, and repeated efforts were
made by Mr.. Glasgow to draw a posi-
tive statement as to whether he had
paid any actual cash for his 400
shares in the company. Mr.. Patton
explained that he became interested
in the land purchasing company
through J. Howard Patton, who repre-
sented the interests of Col George f
Huff. When the land was purchased
he said the investors were obligated
to pay their pro rata share, but as
there had been no losses it was not
necessary to pay in cash.
You got that obligation back,
didn't your"
ST did in stock"
Were you required to pay anything
| toward the purchase of the land ?"
II stood to lose, and had it been
necessary would have paid my share
Senator Cockrell here interrupted,
saying:
ut seems to me to be an easy mat
ter for you to say you went into
speculative deaI;-- that none of you
paid any cash, and that the corpora
ton was responsible for the purchase
price I do not see the necessity Of
beating about the BUSH
GAS a matter of fact said Chair
man Knapp, you took the risk but
did not lose anything
'I was an investor" replied the
witness. land was treated the same as
| other investors
Concerning the Huron Coal com
pany, Mr.. Patton said he thought he
had 500 shares. but was not certain,
which he acquired IN the same man
ner as his holdings in the Atlantic
| Crushed Coke company. He was asked
If he ever held stock in the Columbia
/ Coal company. He said he had at its
organization, but it became selling
company instead of an operating
company and he sold his stock to a
Greensburg, Pa, banking company.
what bank took ?"
The Cassatt bank"
In the Greenwich company Mr..
Patton said he had 1000 shares He
said he was obligated by note TO the
amount of $4,000 for the purchase
of the land. The money was guar
anteed by Mr. Huns bank at Green's
burg. Witness said he got the money
back through the sale of the bonds
Concerning the Cochran Coal com
pany. Mr. Patton said there were 900
or 1000 acres of undeveloped coal land
and some of our people" suggested to
Thomas Cochran the desirability Of de-
veloping it.
ASKED what he meant by some of
our people" witness said bankers and
brokers and others who might be In