The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-05-25


elations concerning stockholding in
soft coal mining companies by officials
of the Pennsylvania railroad were
made today by the interstate COM
merce commission when il resumed
it's investigation into the alleged dis
elimination by railroads in the dstr:bu-
ton of cars.
Three high officials of the railroad,
Vice President John P Green, Third
Vice President Samuel Rea, and Will
liam A. aPtton, assistant to the pres
ident, at Philadelphia, were the impor-
tant witnesses of the day.
Mr. Patton was under examination
was an unwilling witness. The persis-
tent questioning of Attorney Glasgow,
for the commission, however, brought
out the fact that Mr.. Patton had ac-
quired stock. the par value Of which
is 1907 900, in various coal companies
without cost to himself He explain
ed, however, that he had signed notes
obligating himself for his share of the
losses and declared his belief that it
was proper for him to accept the stock
under these conditions.
Vice President Rea read a state
ment to the commission in which he
explained all of his stock transactions,
stating that he did not believe he
was debarred from such ownership be-
cause of his connection with the rail-
road company Mr. Rea said that most
of his stock was acquired through his
associations with land purchasing syn
dicates which took up the coal proper
ties for development
Vice President Green said that
twenty or thirty years ago it was not
considered improper for an official Of
the railroad to own coal company
stock, but that conditions had changed
and such holdings might not now be
regarded in the same light as former
ly He informed the commission that
the board of directors of the Pennsyi-
vania railroad, acting upon the inioT-
nation that had been brought out at
the hearings, had today appointed a
committee of five directors to make an
investigation into the connection II
its officials with coal companies. Mr..
Green said he did not own a dollars
worth of coal company stock
Other witnesses testified to stock
ownership and to discrimination in the
distribution of cars.
Chairman Knapp, former Senator
Cockren and JudsOn c. Clements con-
Quoted the hearing.
The entire commission sat for TO-
days hearings. The first witness cali
, ed was w. A. Patton, assistant to
President Cassatt at Philadelphia. He
was asked to tell what interest he lad
in coal companies. Taking a list frtm
his pocket he enumerated the various
companies in which he held stock
Concerning the Keystone Coal Com
pany shares, of which $500 were in
his name, he said he got the stock by
purchase, and through the merging
with the keystone company of smaller
companies in which he was Interest
ed Five hundred of the shares, he
said, belonged to his brother, J. How
ard Patton, who is interested in coal
properties in Western Pennsylvania.
Mr. Patton explained that he acid
stock in five companies which were
consolidated with the Keystone, and
through that transaction secured mis-
holdings in the keystone company.
After repeated efforts had oeep
made by Mr.. Glasgow, counsel for the
commission to draw from the witness
a positive statement as to whether he
had paid any actual cash for his 40C
shares in the company, Mr.. Patton
made an explanation to the effect that
he became interested in the land pur-
chasing company through ]. Howard
Patton, who represented the interests
of Colonel George F. Huff. When the
land was purchased, he said, the in
yestors were obligated to pay theil
pro-rata share. but as there had been
no losses it was not necessary to pay
in cash.
"Were you required to pay any
thing toward the purchase of rhs
land?"
81 stood to lose and had it beer