The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1906-05-24
GET BIG income
FROM COAL STOCK.
DIVIDENDS TO RAILROAD MEN
REACH LARGE SUMS.
REASONS FOR LARGE GIFTS
Mining Man Testifies That 1t Is Bet
ter to Have Friends Than Enc
mics Among Transpor-
tation Agents.

Philadelphia, May 19.-After hearing
much additional testimony concerning
donations of stock TO officials and en-
ployes Of the Pennsylvania railroad by
soft coal mining companies, the inter-
state commerce commission Friday ad-
journed until next Wednesday, when
1t will resume its sessions in this city
and proceed with its inquiry into al
legged discrimination by the railroads
in the distribution of cars.
Frank II. Wigton, president OF the
Morrisdale Coal company, appeared
before the commission and corrected
his statement of Thursday that his
company had received rebates from the
Pennsylvania railroad within a few
months previous TO the retirement OF
General Traffic Manager Joyce in 1908.
Mr.. Wigton said that upon investiga-
ton he found that his company had
received no rebates after 1900.
f. L. Sheppard, general superintend-
emit Of the United Railways Of New Jer-
sey, was examined as to his stock hold.
ings in coal companies and alleged pier
privileges given the Berwind-White
company at tidewater. F. M. Gross,
western manager Of the Keystone Coal
and Coke company, told of men in the
motive power department of the Penn
sylvania railroad who owned stock in
the various coal companies.
Edward Pitcairn, trainmaster of the
Pittsburg division, admitted having ac-
cepted stock, in coal companies, and
R. B. Freeman, another trainmaster,
said he received Christmas presents OF
money from coal companies.
Maj. Richard Coulter, Jr., during his
testimony said that Frank Thomson, a
former president of the Pennsylvania
railroad, had participated in stock dis
tribution.
How Stock Was Distributed.
E. NJ. Gross, of Greensburg, Pa,
western manager Of the Keystone Coal
and Coke company, was examined rela-
tive to his knowledge of the connection
of railroad officials with coal mining
companies. He named Robert Pitcairn,
Jr., Edward Pitcair. R. L. oDonnell, ]
n. Purviance, w. A. Patton and mum.
Der of smaller officials, including two
clerks in the motive department of the
Pennsylvania railroad, as stockholders
in a number of coal companies. He
said the railroad men received their
shares on the same basis as all other
stockholders. When it was decided to
form a company, Mr.. Gross explained
a party of friends would be gathered
and the stock distributed.
why do you give stock to railroad
people?" queried Mr.. Glasgow.
ITO have them associated with US in
business
well, why do you present stock tc
a clerk in the motive department."
For business purposes"
at is a good thing to have friends
in the railroad" interposed Commits
sioner Clements.
Better to have friends than enc
miles," responded Mr.. Gross.
The witness said that nearly all o.;
the companies in which railroad Off
Gals were interested furnished fuel
coal to the Pennsylvania railroad.
Dividends to Railroad People.
Maj. Coulter said ne knew OF no spe-
cial assignments of cars TO the Key
stone company, neither had he any
knowledge that the keystone company
had paid money other than dividends
to railroad people.
Lloyd B. HUFF, of Greensburg, Pa,
testified that he held stock in sever
coal mining companies. including the
most OF which furnished fuel coal to
the Pennsylvania railroad. Mr.. Hui
said the Keystone company had never
re eived rebates, special rates, or con-
&C.. .ons from any road.
Daring the examination Of T. A. Es-
tep, OF Ebensburg, the name of Samuel
kea, fourth vice president of the Penn
sylvania railroad, was mentioned for
tie first time during the present ses-
sion. Mr.. Estep said he had been en-
ployed as superintendent of mines in
which M. w. Saxman was interested,
and that he had options on coal lands
which Mr.. Saxman desired to purchase.
He testified that Mr.. Saxman promised
to give him stock in company to be
organized in consideration of his OPP
tions. He asserted that Mr.. Saxman
told him that Samuel Rea was one of
the parties who intended purchasing
the land. The witness declared that
later Mr.. Saxman told him he could
not give him the stock promised be-
cause he had to give it to the railroad
people. "Mr. Saxman offered to give
me $1,000 worth Of stock in one of his
companies, but sued him and got
$4,000 WORTH
Edward Pitcairn, trainmaster on the
Pittsburg division, testified to his hold
ings of stock in coal mining compa-
MES. For 600 shares Of keystone COM
pany he said he paid $500 and the in
come amounted to about $4,000 an
nually.
John Aldred, chief clerk in the once
OF S. G. Long, superintendent Of the
Pittsburg division, said he owned stock
In number of companies which he Sc