The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1914-07-23
RAILROAD AND
COAL DEALS HIT
Sensational Report Made by
Commerce Commission.
GREAT FRAUDS ARE ALLEGED
Scheme Of Rebates and Dlserirrllna-
tory Practices Uncovered lnVelV-
Ing Especially New York Cen
trail 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. o. Brown, former president Of
the New York Central system.
Charles P. Hewitt, brother-in-law Of
W. o. Brown.
8. w. McCuns, an agent employed
by Brown.
John Christensen, Independent Of
the New York Central.
r. M. Huddleston, 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.
tenn 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 $4,000. The New York Cen.
trail solicited business for the O'Gara
company; paid II more for coal than
1t was getting from any other con-
cern; protected it's contracts; loaned
1t nearly Ave hundred Thousand dol
lars; extended its credit without Sc.
curity or interest and gave it other
as advantageous.
The testimony of several OF the
witnesses was characterized by eva
siOns and lapses OF memory and parts
thereof were later withdrawn and cor
reCted," says the report. I'm some in
stances a witness more than once
asked permission to change his testi.
mony; and, in several cases. the state
ments made by the same Official at one
hearing fatty contradicted what he
had said at previous hearings. With
respect to some phases Of the transac-
tons here mentioned, the record still
affords no satisfactory explanation"
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 a surety
bond Of him, saying that he would be
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, proflted substantially thereby.
The record does not show that Mr..
Brown had any knowledge OF the ir-
regulsrities 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; "a He placed McCune, a
personal acquaintance. without bonds,
in responsible position, involving
the expenditure OF over 100000, to
which trust the record shows, that
person was unfaithtul and 90 he as.
signed to a lucrative position, netting
nearly twenty-five thousand dollars In
q little over q year, a relative who
was not competent even TO hancie his
own money affairs, was inexperienced