Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-07
ALLEGE MUCH GRAFT
Serious Allegations Against the
Pennsylvania Railroad Co.
FAVORITISM Is CHARGED
Difficult Task Before President Nc
Crea, It is Said.
DIFFERENCE IN EAST AND WEST
Concerns Complain That They Gould
Sell to Lines Under McCrea,
but Not Elsewhere.
DIFFERENCE IN EAST AND WEST

NEW YORK. January 1.-THE New York
World today publishes a long article pur-
porting to show some graft methods in
the management of the Pennsylvania Rail-
road Company. The World says
James McCrea went into the presidency
Of the Pennsylvania railroad last Wednes-
day with an anti-graft record. He was put
there to sweep out grafters and END graft
ing. Those in a position to know declare
that no corporation executive was ever
confronted with a task SO colossal as MI
McCrea's. The evil he must fight ana
crush has had fifty years growth IN the
company and has more than kept pace with
the expansion of Americas greatest rail-
road system. Its ramifcations are SEEM
ingIy endless, being interviewer with oi1-
ferent departments of the $4O0,Uooooo cor
poration whose gross income during 1910
reached the stupendous total OF S26o oo9'oyi,
and whose aggregate expenditures III ''e
same period were 1892, 100,34S.
For more than two months the World mas
been investigating complaints mace 10 IL VI
grating methods in several oepar 'iile sniI,
of the Pennsylvania road. In the nam
these complaints came from firms ana CON-
panies which found 1t Impossible 10 sen
supplies or equipment to that section OF the
railroad system east OF Plttspurs, lnou Jug,
in many instances they are the largest con,
Germs in their respective lines OF trace ana
seemingly could sell as cheaply as others.
Serious Charges Made.
These same complaining concerns were
able to sell to the Pennsylvania lines west
of Pittsburg, which until Wednesday last
were under the control of James McCrea
They declare the western lines were open
to the lowest bidder; that the eastern lines,
in the purchase of supplies and equipment
were governed by rules which smut out the
lowest bidder and awarded the richest con-
tracts to favored concerns in when reia-
tives of officers and employees OF the rall-
road company are Interested
The Worlds investigation dealt almost
wholly with the conditions obtaining on
the lines east of Pittsburg, and the results
exhibit an astounding state of affairs which
concerns not only every stockhoider OF the
company but the public as well:
Men In the employ of the pennsylvania
road in certain of it's departments, live on
a scale seemingly beyond the scope of their
salaries Many of them have retired WIN
Independent fortunes. Others nave oleo
leaving estates of great value All OF the
mast presidents of the Pennsylvania nave
died multmillionaires though most of them
began life In some humble capacity In the
service of the road, and always worked on
salary.
The Salary System.
The salary system on the Pennsylvania
road has never been wasteful Compared
with New 4OrK COTpOTdliOIS, even VI
smaller caliber and where the responsible
ties are proportionately lighter it is almost
penurious Nevertheless certain groups OF
| officers and department heads and employees
| live luxuriously and amass riches. This, OF
course, does not apply to all of the officers,
| department heads or their confidential en-
| pIoyes. There are men who have been with
| the company twenty, thirty and forty years
| and have risen to positions of eminence, but
| have always lived modestly and have accu-
| mulated next to nothing. Such men as Pres
| ident McCrea Second Vice President Chas.
| E. Pugh and Fourth Vice President John
| B. Thayer are conspicuous examples or this
| type.
Bombshell Report Expected.
| Since last summer, following the disclos-
ure by the interstate commerce commission
| of graft coal stock held by many officers
and employees of the Pennsylvania, COM
mittee of five directors has been 1nvestgat-
ing the internal affairs of the company.
| This committee, the chairman of which is
| c. Stewart Patterson, is nearly ready to file
| its report The indications are that the re-
| port will be followed by the most radical
| housekeeping in the history of the Pennsyl-
| vania road and a revision of its methods OF
| business in many important departments.
|