Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-18
NO GRAFT WAS FOUND
Pennsylvania r. R. Company
Committee Makes Report.
CLEAN AND ABOVE BOARD
Management of the Company is Said
to Be Competent.
DENIAL OF ANY FAVORITISM
Stockholders Are Well Protected and
5erved, It is Alleged - Public
Charged With Injustice.
DENIAL OF ANY FAVORITISM

NEW YORK, February 1S.-The bare
statement that no graft was found in the
investigation Of the Pennsylvania Railroad
Company has already been published in The
Star. The report of the special committee
to investigate those charges is now made
public
"A mistaken public opinion, misinformed
as to the facts, because of the publication
of portions and not the whole of the testl-
mony of the witnesses before the inter-
state commerce commission, and, there
fore, basing its conclusions upon insufficient
premises, has done grave injustice to the
whole service of the Pennsylvania Rail-
road Company. That service is of more
than sixty years growth; it is constituted
in the main of educated trained and self
respecting men, whose honorable lives have
won the esteem of those who know them
best. 1t has it's traditions of loyalty, and
it has had in its successive officers ex-
amples of unselfish devotion to duty and
steadfast adherence to the right"
This, in brief, is the report of the spe-
cial committee appointed by the directors
of the Pennsylvania Railroad Company
nearly a year ago to examine into the
facts connected with the acquisition and
ownership by officers and employees of
any company the holding of which could
affect the performance of their duty or
the company's duty to the public. The al
legged acceptance of gratuities by employees
of the company also was inquired into by
the committee.
AS result of it's examination of 2,50J
officers and employees, including every Off
of the companies whose individual ac-
ton or whose order to any subordinate
could effect any Discrimination the commit
tee reports it found that 265 had interests
in - other corporations or firms or
with individuals With the exception of
Of no. irod hpi n
terest by purchase. he fifteen admitted
that they had received gifts of shares or
interests in various corporations, and their
names have been reported to the presidents
of the several railroad companies for APP
propriate action.
Vindicates the Employees.
On the whole the report vndicates the Of
ficers and employees of the Pennsylvania
system 1t is found that in the develop
ment of the company between the years
1899 and 1907 the interest of the stockholo-
ers in every instance has been properly
safeguarded. 1t is declared that the terms
on which increases in share and debt capt.
tai have been marketed have received the
commentator of competent and independ-
ent financiers; that as effective competition
as possible in work of such magnitude was
obtained in placing the thousands Of con-
tracts for maintenance of way and new con-
struction; that no favortism was shown in
that the officers o. the railroad companies
in all engineering and construction work
have been as faithful as they We're skillful.
The committee expresses itself as satisfied
that the purchasing department had been
administered with marked ability and with
answering fidelity to the interest of the
shareholders.
In this connection the report says:
The aggregate cost for the six and a
half years ended June ~, 1895, of all ma
ter1al and supplies which have been bought
by the several purchasing departments Tor
the use of the several companies is s412-
4J9,69S.62. OF course, the purchases of the
Pennsylvania Railroad Company for its
eastern lines are very much larger in
amount than those Of the other companies
That department buys all ma terial and sup
and certain minor supplies. The purchases
of the department for 1906 amounted to
$69, 5SS,G6S. That department is organized
under a system which prevents collision
with any seller and makes certain the pay
ment of not more than market prices
Discrimination Denied.
Allegations of favoritism to certain ship
pers of freight, mainly COAL are treated at
considerable length by the committee,
which sums w the result of its investiga-
ton of this subject with the statement that
there has not been and is not on the part
of the railroad company any discrimination
as between shippers in the facilities given
for the exercise of that legal right" Much
OF the trouble which led to the allegations.
the committee believes, was due to the So
called individual cars. In 1906 there were
1850 individual cars in service on the
Pennsylvania railroad. For the use of
these cars the railroad pays mills per
mile, loaded or empty, and charges the reg
ular freight ON the loaded cars. The indi-
vidual cars cause suspicious of preference
and lead to 'unfOunded, but veXatious"
charges of discrimination. While recogniz-
ino all hsa a 1Iyan toe hnrr 9he
railroad company has not yet seen it's way
clear to do away with the individual cars.
The principal reason given for inability to
discontinue the individual car service is that
equipment cannot be provided rapidly
enough to meet the growth of business
On charges of discrimination to favored
shippers In the bituminous coal fields the
committee quotes the report of a company
of expert accountants who made an inves-
tigation of the matter. The accountants
report declares that 1.-The officers of the
railroad company have fair operating or
other reasons to present in explanation of
such seeming preferences and discrimina-
TONS
Lease Of Pier Defended.