Los Angeles herald., 1906-06-04

"
company encouraged the officers to aid
In the development of industries along
its lines.
"All Were Used the Same"
The wrong, If any had been done, was
in the alleged favoritism. There could
be no favoritism in rates, as shippers
of coal and all other freights were on
an absolute equality; all paid the full
tariff rates without rebate.
Mr.. CaSsatt made himself personally
responsible for the absolute correctness
of this statement
If there was any discrimination it
could only be In the distribution of
empty coal cars and so far as he knew
no proof had been produced that the
officers concerned had been guilty of
such favoritism.
The board would, however, also make
careful inquiry. and if there had been
any wrong doing would take proper ac-
ton, but it would not sacrifice faithful
and efficient officers to a manufactured
and mistaken public opinion.
The board also would, no doubt, con-
slider the general question of propriety
of the ownership by officers and en-
ployes of stocks of coal and other COM
panies using the Pennsylvania line and
make regulations in relation thereto.
He said there had always been a
shortage of coal cars during periods Of
every year and in recent years this con-
dition had been aggravated by the
great increase in the production of coal,
Notwithstanding the very large in
creases the company had made to its
equipment.
Many Complaints Made
This had given rise to many COM
plants, and, as natural consequence,
TO charges of discrimination. If the
output of coal should continue to in
crease in the same ratio as in the past
few years 1t. might not be possible to
provide sufficient equipment to avoid
a shortage in the car supply at times.
In view of this and of the suspicion
which such ownership would create.
officers having to do with the distribu-
ton of empty cars ought not to own
coal stocks, but to prohibit all officers
and employees from Holding stock of
companies having business with the
Pennsylvania Railroad company would
practically bar them from investing in
the stock Of the companies located in
the state Of Pennsylvania and in a half
dozen other states. The subject was
troublesome and complicated.
1t would do no good but harm to
adopt unworkable and unenforcable
regulations. The question must be
handled in reasonable and practica BILE
way, and Mr. Cassatt had no doubt the
board would succeed in solving it sat-
isfactorily and in formulating proper
rules of conduct in this respect for the
officers.
Says Company Is Honest
Though the testimony before the
commission might disclose cases of in
diVidual misconduct, and though an
effort seemingly organized, had been
made to place the management in the
most unfavorable light, Mr.. Cassatt as
serted that the companys affairs were
honestly conducted in the interest of
the shareholders and with full recog-
milton of its d-ty to the public.
The company had in its employment
over 100000 men, who in character,
efficiency and devotion to its interests
had in their respectce spheres no
superiors anywhere.
The management had in the past
shown itself entitled to the confidence
of the public and it should be trusted
now TO deal properly with the present
situation.
Mr.. Cassatt thought, too, that the
management deserved better treatment
than 1t had received from the press,
and particularly from the press of the
companys home state.
II had rendered an immense service
to the public and to the cause of hon
esty and decency in the conduct of
transportation business. when in the
year 1900 two years before the passage
OF the Elkins act, it gave notice that
no more rebates would be given and
that all shippers, great and small,
would be placed upon a basis of per-
fect equality,
Set Good Example
IT had thus inaugurated movement
which, having been Joined in by other
railroads and aided later by the passage
of the Elkins act, has destroyed a
vicious system almost as old as the rail-
roads themselves and which had be-
come so deeply rooted that many ex-
perieneed railroad men doubted the
possibility Of eradicating It,
The management had dona nfbaY.