The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-18
Alleged Graft Of Employees.

This in brief is the report Of the Hpe-
cisi committee appointed Dy the board OF
directors OF the Pennsylvania Railroad
company nearly q year ago 10 examine
into the facts connected with the acQUi-
sition and ownership by officers and en-
ployes Of the company. of stock or any
other interest in any company the hold
ing of which could affect the perform
ance Of their duty or the conpany's duty
70 the public. The alleged acceptance OF
grstuities by employees OF the company
was also inquired into by the committee
As a result OF its examination of :. 5u5 Of
ficers and employees. including every Of
fiCer Of the several companies whose in
dlVidual action CT whose order 10 any
subordinate could effect any discrimna-
ton. the committee reports IL found that
zi6 had interests in coal or other corpora
tions or firms or with individuals with
the exception of fifteen. all of these had
acquired their interest by purchase. The
fifteen admitted that they had received
gifts or shares or interests IN various
corporations and their names have been
reported To the presidents of the several
railroads for appropriate action
Stockholders Protected.
on the whole. the report vindicates the
officers and employees of the Pennsyl-
Nania system. IL is found that in the de-
velOpment of the company between the
years 1899 and 1907 the interests of the
stockholders in every instance have been
properly safeguarded. II is declared that
the terms ON which increases in share
have received the commentator OF COM
petent and independent fiaanciers; that
az effective competition as possible in
work OF such magnitude was obtained in
placing the thousands Of contracts for
maintenance OF way and new constFuc-
ton. that no faVoritiSm was shown in
the purchase of supplies equipment;
and that the officers of the railroad
companies in all engineering and con-
structicn work have been as faithful as
they were skillful. The committee ex-
presses. itself as satisfied that the pur-
chasing department had been admins
tered with marked ability and with IN
swervihg fidelity to the interest OF the
shareholders.
Favoritisn, to Shippers.
Allegations OF favoritism to certain
shippers Of freight, mainly coal, are
treated at considerable length by the
committee, which sums up the results of
its investigation of this subject with the
statement that there is not and has not
been on the part Of the railroad any dis
elimination 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 be-
heves. was due 10 the sO-called individ-
ual cars. In 1905 there were 1850 indi-
vidual cars in service on the Pennsyl-
Vania railroad. For the use of these cars
the railroad pays mills per mile loaded
or empty and charges the regular freight
on the loaded cars. The individual cars
cause suspicious Of preference and lead
to ''unfounded but veXatious"' charges
az discrimination. While recognizing all
the disadvantages the 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 of equipment. which cannot he pro-
V3dsd rapidly enough TO meet the growth
Of business.
On charges Of discrimination to favored
shippers in the bituminous coal fields the
Of "A
pany OF expert accountants who made an
investigation OF the matter. The ac-
cOCntants report declares that "the of
ficers of the railroad company have fair
operating or other reasons TO present in
explanation OF such seeming preferences
and Determinations.