The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1914-07-23
RAILROAD AND
COAL DEALS HIT
Sensational Report Made by
Commerce Commission.
GREAT FRAUDS ARE ALLEGED
Scheme Of Rebates and Dlscr'rina-
tory Practices Uncovered lnvolv-
Ing Especially New York Gen.
trial and O'Gara Coal Co.

Washington, July 21.-The inter
state commerce commission has sent
to congress a sensational report on
the relations of the New York Central
lines with the O'Gara Coal company
and OF other railroads with coal opera
tons generally in Illinois.
The report uncovers a gigantic
scheme OF alleged fraud, rebates, dis
criminatory practices and special
privileges.
The men most deeply involved are:
w. .. Brown, former president OF
the New York Central system.
Charles =. Hewitt, brother-in-law OF
w. o. Brown.
S. w. McCune, an agent employed
by Brown.
John Christensen, vice-president OF
the New York Central.
Il. NJ. HuddIeston, general auditor OF
the New York Central lines west OF
Buffalo.
Says Brown Devised Plan.
The report finds that these officials
promoted the O'Gara Coal company
and the Saline Coal company for the
purpose of protecting the future fuel
supply of the New York Central sys-
TEN and of securing additional ton
mage. The properties were located in
southern Illinois, in the Harrisburg
district, one of the richest coal-produc-
ing areas in the United States. The
report specifies that the plan origi-
mated with Mr. Brown.
According to the findings of the COM
mission, the Lake Shore & Michigan
Southern, a part Of the New York Cen
trail, paid the O'Gara company a re-
bate OF 100000 The New York Cen
trail solicited business for the O'Gara
company, paid 1t more for coal than
it was getting from any other con-
Germ; protected its contracts; loaned
It nearly five hundred thousand dol
lars; extended its credit without Sc
curity or interest, and gave it other
preferences more technical but just
as adv lntageous.
Buying the Coal Lands.
When Mr.. Brown started out to &C
quire the coal land in question, he
chose as his agent S. w. McCune,
whom he had known for nearly TWEEN
ty-tive years" says the report, "and in
whom he had such implicit confidence
that he declined to require surety
90 thpt la yrnn11 he
personally responsible for the prop
erty in his care To assist McCune,
Mr.. Brown appointed Charles p. Hew-
lit, his own brother-in-law.
THE record shows that he at once
became a tool in the hands of McCune,
with whom he agreed to divide his
commission in return for certain serv-
ices by McCune, the nature Of which
Hewitt was unable to explain and
which McCune did not explain.
Many irregularities took place in
connection with the purchase Of these
coal properties, and both McCune and
Hewitt, one an old acquaintance and
the other a brother-in-law Of Mr.
Brown, pTOilted substantially thereby.
The record does not show that Mr.
Brown had any knowledge of the IT.
regularitles in the purchase of these
properties. The only charges that can
be made against him In connection
with the pilfering of the funds Of the
company Of which he was an executive
are that: % He placed McCune, a
personal acquaintance, without bonds,
in a responsible position, involving
the expenditure Of over $l,000,000, to
which trust the record shows, that
person was unfalthful and (2) he as
signed to lucrative position, netting
nearly twenty-five thousand dollars In
a little over year, a relative, who
was not competent even TO handle his
own money affairs, was inexperienced
in the work itself, and was lacking in
the most ordinary business ability"