The Montgomery advertiser., 1906-06-04
Statement by Pennsyl-
 vania President.
DISCUSSES RECENT DISCLOSURES
Says There May Be Some Instances
 of Favoritisnl.
On, the Whole. However, He Relieves That the EmpIoyes and omcials of the Road are In-
 corruptibie.

Philadelphia, June s-A, J cassatt, President Of the Pennsylvania Rail- road Company. arrived at his homo at Haverford, Pa, suburb of this city, from Europe about noon today. He win be at his office In Philadelphia to- morrow morning. This evening Mir Cassatt gave to the Associated Press the following statement:
 Philadelphia, June 8.
 MT Cassatt said hs returned to take part in the investigation by the Board of Directors of the Pennsylvania Rail- road Company into the matters that had been disclosed during his absence in the proceedings before the Interstate Commerce Commission. He had re- ceived only brief cable reports from the officers of the company and knew nothing of the, details. but from these reports and from cables to the London press he. had learned that charges had been made. against certain officials ot the acceptance of bribcs from coal op- orators. The board would investigate all such charges exhaustively and if any officer or empfoyc should be found guilty of corrupt practices he would be surnmarily dealt with
 Referring to the testimony of cer- tain officers that they held stock of c7ai companies and to the inference
 
 itism and discrimination on a large scale had been practiced for the benefit of the companies whose stocks were thus held. MT 4Cassatt said that while such ownership by officers In position to exercise favoritism. and therefore liable to suspicion was no doubt in- advisable and unfortunate, it was not an pffense In itself, if the stock were properly acquired. and was not con trary to the by laws of the company; in fact, the management had in the early years of the company encourag- ed the officials to aid in the develop ment along its lines.
 Alleged Favoritisn.
 The wrong, if any had been done. was In the alleged .favoritism. There could be no Savoritisni in rates as shippers of coal and all other frieghts were on an absolute equality; all paid the full tariff rates without rebate. Mir Cas- sat- made hiinsef personally respon. sible for the absolute correctness oi this statement. If there was any dis crimination, 1t could only be in the distribution of empty coal cars and SC far as he knew. no proof had been pro- dueed that the officers concerned had been guilty of such favoritism.
 The board would, however. also in- quire carefully into these matters and If there had been any wrong doing, would take proper action, but 1t would not sacrifice faithful and efficient of fcers to a manufactured and mistaken public opinion. The board would also, no doubt. consider the general oues- ton of the propriety of the owner ship by officers and employees of stocks of coal and other companies using the Pennsylvania Companys lines and make regulations in relation thereto.
 There had always been a shortage of coal cars during periods of every year and in recent years this condition had been aggravated by the great in- crease in the production of coal, not withstanding the very large increases the company had made to its equip ment.
 This had given rise to many com plaints 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 shortage in the car supply at times. In view of this and of the suspicion which such ownership would create. of- ficers having to do with the distribu- tion 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 stocks of companies located in the State of Pennsylvania and in half a dozen other States.
 The subject was troublesome and complicated. It would do no good but harm to adopt unavoidable and unen- forceable regulations. The question must be handled in a reasonable snd practical way and MT. Cassatt had nc doubt the board would succeed in solv- ing 1t satisfactorily and in forrnulat- f-o nf fva 3s.I. spect for the officers. s
 Individual Misconduct.
 Though the testimony before the commission might disclose instances of individual misconduct and though an effort, seemingly organized, had been made to place the management in the most unfavorable light, MT. Cassatt as serted that the company's affairs were honestly conducted in the interest of the shareholders and with a full recog- hilton of its duty to the public The company had in it's employment over 160,0 men. who, in character, efficien- cy and devotion to it's interests had, in their respective spheres, no superiors anywhere The management had in the past shown itself entitled to the confidence of the public and 1t should be trusted now to deal properly with the present situation
 "Mr Cassatt thought too. that the ranagement deserved better treatment than 1t had received from the press ard particularly from the press of the com pany's home State. It had rendered an immense service to the cause of hon esty and decency in the conduct of the transportation business when in the early part of the year 1900. two years before the passage of the Elkins act, 1t gave notice that no more rebates would he paid and that all shippers, great and small would be placed upon basis of perfect equality.
 Tt had thus inaugurated move nnent which, having been joined Tn by other railroads and aided later by the passage of the Elkins act destroyed vicious system almost as old as the railroads themselves and which had be- come so deeply rooted that many ex. perienced railroad men doubted the posibiliyt of eradicating 1t.
 The management had done other things that deserved the commendation of the public ana press It had taken the company out of politics and 1t had done away with the free pass evil. But the press generally in its present hos