The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-04
CASsA1T DEFENDS RAILROAD.
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tfum ~ rretm ~ tEs Nty N A a.
Ca@@Nl president N NO ~Prrpayivssia
Haileosi, . coaierenr~ wetrtna M
alua'ioa witch bri bern brrraht sbuit ~
TN Interstate Cofumer,s' nvss'l astiou $40
h~ai q, hls rvaioeoc~
No information ~reeariina tho mertlna
whs made p,ihic, but " 10 und"fs'oot 'hae
tWo ~ Tho general oHlcrts ~ N" rrnnayl.
vanla and Ffsncis I uowru n m" bssil
stan wer- thrts rhpt' present ralNat
that IN. mtbHc sutitI luul fur u -tatsrnant
~ -ome Kind frrn Nr Ciss,u immediately
upon his arrival AMI th' question ~ such Q
statement VIA taken ~ first
After tho statement q. drawn up had
received W.. Cassatt's approval tho men
al the conference y, once laid heforr Mr..
Ca-satt the morp important matters ~
he details ~ the Investigation during
he time hat hc has hecn ont Of touch with
heir messa ges.
MIR. Caksatt was rat her tired after his
Journey and IL Ia understood that the qless
ton " an Investigation Ivy the company
and he general plan Of procedure In view
Of the re velations by the probers was left
to be taken up to-mO ROW morning. Tbs
full text Of the testimony already brought
out at The hearing was ready for Mr..
Cassatt. The statement given out IL as
follows:
Mr.. Cassatt said he had come home to
take part in the investigation by the board
Of directors Of the Pennsylvania Railroad
Company into the matters that had been
disclosed during his absence in the pro-
ceedings before the Interstate Commerce
Commission The board would investigate
all charges exhaustively and IL any officer
or employee should be found guilty Of
corrupt practices. he would be summarily
dealt with.
Referring to the testimony OF certain
officers that they held stocks OF coal COM
panies and TO the inference drawn by tbs
newspapers that favoritism and discrimi-
nation on a large scale had been practised
for the benefit OF the companies whoss
stocks were thus held, Mr.. Cassatt said that
while such ownership by officers in a position
to exercise favoritism, and therefore liable
to suspicion, was no doubt inadvisable and
unfortunate, 1t was not an Offences in itself
IL the stocks were properly acquired ami
was not contrary to the bylaws OF the
company. In fact, the management had IN
the earlier years Of the company encouraged
the officers to aid in the development OF
industries along its lines. The wrong, II
any had been done, was in tbs alleged
favortism.
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.
II there was any determination 1t ould only
be in the distribution Of empty coal cars,
and 10 far as he knew no proof had been
produced that the officers concerned had
been guilty OF such favoritism. The board
would, however, also inquire carefully
into these matters and If there had been any
~wrongdoing would taxi proper action,
but it would not sacrifice faithful and
efficient officers to a manufactured and
mistaken public opinion.
The board would also, no doubt, con-
slider the general question OF the propriety
of the ownership by officers and employees
of stocks of coal and other companies
using the Pennsylvania Railroad Com
pany's lines, and make regulations in re-
dllOn tHtItlO. Ihih always btVh."
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, notwith-
standing the very large increases the COM
pany had made in its equipments. This
had given rise to many complaints, and
as a natural consequence to charges OF
discrimination
If the output of coal should continue to
increase in the same ratio as in the last few
years it 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 distribution Of empty cars ought not to
own coal stocks, but to prohibit all officers
and employees from holding stock of COM
panies having business with the Pennsyl-
vania Railroad Company would practically
bar them from investing in the stocks OF
companies located in the State of Penn
s~ylvania and in half a dozen other States.
The subject was troublesome and COM
plicated.
1t would do no good, but harm, to adopt
unavoidable and unenforceable regulations.
The question must be handled in a reason
able and practical way, and Mr.. .Cassatt
had no doubt the board would succeed in
solving it satisfactorily and in formulating
proper rules of conduct in this respect for
the officers.
Though the testimony before the COM
mission might disclose nstances of indi-
vidual misconduct, and though an efIor
seemingly organized, had been made to
place the management in the most un-
favorable light, Mr.. Cassatt asserted that
the company's affairs were honestly con-
Quoted in the interest of the shareholders
and with a full recognition of its duty to
the public. The company had in its en-
ployment over 100 900 men who, in charac-
ter, efficiency and devotion to its interests,
had in their respective spheres no superior
anywhere.
The management had in the past shown
itself entitled to the confidence OF the public
and it should he trusted now to deal properly
with the present situation. Mr.. Cassatt
thought, too, that the management de-
seryed better treRtnent than IL had ra-