The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-02-18
'PENNSY' REPORTS
ON GRAF I CHARGE
Says That the Company
Operated by Honest and
Skilful Men.
SOME FEW RECEIVED GIFTS
That Such a Thing Was
Done, But Points Out That
Few Are Implicated.

4, NEW - OltlS, FEBRUARY }II--Ehe final K
report OF The special committee APP
pointed by tile board of directors OF tho
Pennsylvania Railroad Company July a
year ago to cXamlnel into the facts con.
'nec,ed with the acquisition and owner
ship by officers and employees Of tic
company OF stock, or other interest III
any company, the holding OF which could
affect the performance of their duty or
the company $ duty to the public. which
report was made public to-day, says in
brief:
Cornpany's Statement.
"a mistaken public opinion, nsin-
formed as to tic facts, because of the
publication Of portions, and not the
whole. OF the testimony of the witnesses
before tbs Interstate Commerce COM
mission, and. therefore. oasing its con-
illusions upon insufficient premises has
done a grave injustice to the whole ser
vlce of the Pennsylvania Company.
"That service Is OF over sixty years
growth: 1t is constituted in the maIrl,
of educated. trained and self respecting
men, whose honorable service won the
esteem of the people who know them
| best; it has it's traditions of loyalty, and
1t has had, In the successive officers. en-
I ampleh of unscltish devotion to duty and
steadfast adherence to the right.
"Of the 2,505 officers and employees eS
| .amined, including every officer Of the sew
| eral companies whose individual action
i or whose order to any subordinate could
| effect any discrimination. 266 We're found
/ to have interests in coal or other corpo-
| rations or firms. or with individuals. The
majority of those interests are In cor
] porations, whose shares are dealt in on
! the open market or those 266 officers
and employees, PSI had acquired their in
torcsts by purchase. The few remaining
4 officers and employees (fftecn) received
I gifts Of shares or interests in various
/ corporations.
"Forgets His Duty
"The committee regrets that any Off
Ger or crnploye of the Pennsylvania
lRailroad Company should have so fal
i forgotten that which was due TO the
service, and which was also due 10
his own character, as to ACCEPT a
A gift, whose acceptance might bring
Ia suspicion of conflict between his off .
cial duty and his personal interest.
4 The committee has reported TO the
presidents of the several railroad cnm-
paries. for appropriate action. the
names of those officers end employees
who have; In the Judgment OF the com
mittee, been found to have failed l.,
Il the performance OIL their uutS
CAS- the finel result of its exanl-
nation of the whole subject committed
Ito 1t, the committee reports that. with
few exceptions, the officers and em-
|rloyes of the companies constituting
the Pennsylvania Railroad ystem nave
been faithful to duty
& Report Vindicates.
On the whole the report vindicates tn
officers and employees of the Pennsylvania
system. 1t is found that in the devel
opmcnt of the company between 1879
and 1907 the interests of tho stock
. holders in every instance have bee
properly safeguarded. It is declared tina
t the terms on which increases in shar
and debt capital have been markete
have received the commentator {
. competent and independent flnancier:
:, so that effective competition as possibl
r in work Of such magnitude was obtaine
q in pla cling the thousands OF contract
for maintenance OF way and new con
IS struction that no favoritism was show
d In the purchase of supplies or equi1
e. ment. and that the officers of the raj
s. road companies, in all engineering an
y construction work. have been as faitl
r. full as they were skilful.
$. AS to allegations of favoritism to Gel
If tain shippers of freight, mainly coal, tt
-
I. been and is not, on the part OF the raj
o. road company, any discrimination as bt
a tween shippers In the facilities given 4
the exercise Of that legal right"
= Individual Cars.
Much Of the trouble which led to Il
IN allegations, the committee believe. wa
due to the so-called Individual cars.
J. 1906 there were 1880 individual cars
r. service on the Pennsylvania 1anilroa
For the use of these cars the railros
m pays six mills per mile, loaded or cmpt
G. and charges the regular freight on tt
loaded cars. While recognizing all tt
of disadvantages, however, the railroad cor
3 pany has not yet seen it's way clear
do away with the individual cars main
10 because equipment cannot be provide
g. rapidly enough to meet the growth
Nv business
On charges Of discrimination to favort
"a shippers in the bitumnous coal fields Il
committee quotes the report OF cor
!, /, pany Of expert accountants who MAJ
90 an investigation Of the matter. The a
10 countants' report declares that THE G
ticers of the railroad company have ia
generating or other reasons to present
.