The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-05-24
&DTTEN SYSTEM
IS UNCOVERED
Officials of the Pennsylvania
Railroad Bribed by the
Goal Companies.
MATTER TO GET RICH
STOCK ACQUIRED WITHOUT
CASH OUTLAY.

Philadelphia. May 22--High officials of
the Pennsylvania railroad are among the
witnesses who will be examined during
the investigation this week Of the inter
state commerce commission into the al
legged discrimination by the railroads in
the distribution Of coal cars. The hear
fngs were resumed today
The revelations last week when a pum-
Der or PennSy lVania railroad CITclalS al
United accepting gifts Of stocks In var
fOus soft coal mining companies impelled
the commission TO subpoena more I'M
pOrtant officers in an effort 10 determine
the extent OF the secret business rela-
tiOns alleged TO exist between the rail-
roads and certain coal companies
As a result Of the investigation minor
fly stockholders of the Pennsylvania
railroad are said to be considering plans
to bring about a more thorough probing
through the state legislature. Such an
investigation would include an inquiry
into all the details surrounding the con-
tracts for steel rails engines and other
equipment made in the last five or six
years. The present investigation is
limited by the Tillman-Gillespie resolU-
tiou TO the relations of the railroads to
the coal and oil industries.
The entire commission sat for today's
hearing.
Patton's Good Thing.
The first witness was W A Patton.
President Cassatt's assistant at Phila-
delphia. He was asked what interest he
had in coal companies. He enumerated
the various companies in which he held
stock. Concerning the keystone Coal
company. Of which 900 shares were in
his name, he said he got the stock by
purchase and through the merging with
the keystone company of smaller COM
panies in which ne was interested. Five
hundred shares. he said, belonged to his
brother. J. Howard Patton, who is inter-
ested i'm coal properties IN western Penn
sylVanla- Mr. Patton explained that he
held stock in five companies which were
consolidated with the Keystone and
through that transaction secured his
holdings in the. Keystone company
An Unwilling Witness.
At Patton proved an unwilling witness
when questioned about his holdings in the
Atlantic Crushed Coke company and re
peated efforts were made by Mr.. GlaS-
gov 10 draw a positive statement as TO
whether he had paid any actual cash for
his 900 shares IN the company Mr. Pat
ton explained that ne became interested
I'm the land purchasing company through
J. Howard Patton, who represented the
interests Of Colonel George T. Huff
when the land was purchased he said the
Investors were obligated to pay their pro
Iara share. but as there had been no
Slosses. it was not necessary TO pay IN
( You got that obligation back. didn't
u did in stock
We're You required to pay anything
toward the purchase OF LIle lana
II stood 10 lose and had IL been neCes-
sary would have paid my share
Senator Cockreil's Blunt Remark.
Senat CockreU here interrupted, say
ing:
1T seems 10 me to be an easy matter
for YOU TO say you went into a specula-
tive deal; that none of YOU paid any
cash and that the corporation was re-
sponsible for the purchase price. I do
not see the necessity Of beating about the
bush
AS matter of fact" said Chairman
Knapp, YOU took the risk but did not
lose anything
II was an investor replied the wit
ness and was treated the same as 9TH
e. investors.
Concerning the Huron coal COMPANY
Mr. Patton said he thought he had 800
shares, but was not certain. which he
acquired in the same manner as his hold
iugs IN the Atlantic crushed coke com
panv He was asked if ne ever held stock
in the Columbia coal company He said
he had at its organization. but IL be
came q selling company instead OF an Op-
Grating company and he sold his stock TO
Il GreensbUrg pa banking company.
What bank took it?'
The CaScatt bank