The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-02-18
STOCK GAMBLING DIRECTORS
Who Have Ruined the Reading Rail-
road Company,
II the Testimony OF an Ex-President
Is True.
Lewis and fCorbin Correspond ant
Miners VIII Co to Work.

Company was the first witness this morning
before the congressional investigating COM
mittee, which is inquiring into the strike on
the Reading railroad system and in the coal
regions. Mr.. Smith said that he had been
president Of the Reading railroad from 1861
to 1862 and director until 1876. He resign
ed his dictatorship because he discovered in
1876, after an investigation, that the compa-
ny was publishing false reports and cooking
up its accounts in the interest Of stock gam
bling. The company, he had found, had
borrowed s15,OOO,OOO to pay dividends which
had not been earned.
To the question, 'Do the present stock and
bonds represent money actually paid in on
the work done?" the witness replied that
the company borrowed fifteen millions to
pay dividends not earned, and gave the mon
ey away The loan was secured by bonds,
and those securities did not represent any
thing except stock gambling operation.
"Then," said Chairman Tillman, 'is not
the company, in arranging its business so as
to meet its interest obligation and expenses,
charging the public to pay interest on money
which the company never received and
which was used to foster vanity and gam
bling, and is not some Of this money wrung
from the miners?"
Mr.. Smith said he supposed that was true.
The witness stated the enormous debt OF one
hundred and sixty millions, accumulated
since 1870, was caused by doing losing bus
iness and borrowing money. right and left;
The nature of the companys business had
been changed, the accounts had been cooked,
its debts concealed, and the character OF its
transactions altogether revolutionized. Inc
witness sold his stock because IL had been
assessed. He did not think he would get his
money back if he held the stock and paid
the assessment.
The witness was asked questions leading
up to any expression of his opinion as to the
ability of the Reading Company. to pay It's
debt and the value Of its securities. lie re-
piled finally: "It would not own dollars s
worth of its bonds, except the very early
ones. The others are worthless; the compa-
ny cannot pay its debts"
When asked further whether he thought
the road would go back into the hands OF a
receiver, he said: Eyes, within year, from
present Indications"
General Superintendent j. A. Sweigard
was next called. He detailed the trouble be-
tween the company and the men, which cul-
minated in the Port Richmond strike on the
| entire system. The men broke their agree
ment not to refuse to do work until there had
| been an investigation. The most important
| point in his testimony was his denial of hav-
ing tried the men by telling them to go back
and then breaking his agreement, as claimed
| by John L. Lee, the leader of the strike. be-
| fore the committee. He also denied that he
had summoned Lee from Pottsville and at
tempted to bribe him. He said that Lee, for
two months before the strike, had been taken
from the machine shop and employed by the
company along the system to keep the "hot
heads" from striking He did not know
whether Lee was paid by the knights at the
same time or not.
The committee will telegraph Lee to ap-
pear before II tomorrow and explain.
President Corbin was then recalled. He
claimed that the committee went outside The
line of its duty in prying into the financial
affairs Of the road and the session was a
stormy one. He finally gave some informa-
tion as to the property.
Miners Going to Work.
The following letters have passed between
Mr. Corbin and Mr.. Lewis:
PHILADELPHIA, Feb. 16, 1888.
Austin Corbin, Esq, President Philadelphia and
Reading Railroad Co.:
SIR-Being desirous to bring the strike in the
mining region Of the Reading Coal and Iron Com
pany to a close in order TO get the working people
IN and about those mines TO work, and speaking
for those working men, propose 10 order the re-
sumption of work at once upon your assurance
that can promise the men that, after they have
gone TO work and mining operations are In regular
the subject o. Wages s WIN DC an ts
poyes, their representatives, and upon the iur-
ther assurance that ro one shall be discrlmlnated
against by reasea YosIs or MS & WIN ne
(Sgned) W. 1. LEWIS.
PHILADELPHIA, Feb. II, 1888.
To Mr.. W. 4. Lelgis:
MY Dear Slr-I am receipt of your favor of this
date, and have consulted with MIR. keim, presi-
dent OF the Coal and Iron Company in relation to
its contents. | am authorized by him to say that
it is substantially In accord with our proposition,
and such action will be satisfactory to US. No
one will be Disseminated against because OF his
connection with the STRIKE so as 1t is not under
stood as protecting such men as have made, or
attempted to make, personal assaults upon the
men remaining at work, and provided further,
will not expect us to pay higher rates for mining
than those paid by other coal producing c0mpa-
nies in competition with US, namely the Delaware,
Lackawanna s. Western, Delaware & HUDSON
ny and Lehigh & Wlkesbarre Company, but with
the understanding that we are willing to ADOPT
basis that shall give our miners as much as Is
paid by either Of those companies. 1t Is under
stood that wages to be paid on returning to work
will be on the old $3.50 basis, ana will remain un,
der that basis until change is mutually agreed
upon.
Yours Truly,
(Signed) AUSTIN CoRBIN.
The Orders Issued.
PoTTsvILLE. Feb. 17.-Orders were signed
at 1l.3O tonight to the employees Of the Read
ing Coal and Iron Company to resume work
Monday morning, Feb. Goth. The order says
it does not include any company but tn 9
Reading, and urged upon the miners in the
Lehigh regions, including the Panther Creek
valley, the necessity OF maintaining firm
stand.
The settlement of the miners strike does
N affaat tha afrilxQ tbQ railroad which.