Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1888-02-18
General Congressional News.

sdlIIHP ftsstis. ptlOltu Bt tHtiT lttustu
masters OF by a United States pilot, from
obligation to pay state pilots for services that
are not actually rendered, was defeated by
the House committee on merchant marine
and fisheries on Friday
ExPresdcnt Smith of the Reading rail
road was the first witness Friday morning
before the Congressional investigating com
mt1ee, which is inquiring into the strikes on
the ReadNg railroad system and coal region.
Mr.. Smith said that he resigned from the Of
flee as director because he discovered in
1876 the campany publishing false reports,
and doctoring its accounts i'll the interest of
stock gambling. He found the company
borrowed fifteen million dollars to pay dvi
dends which had not been earned.
The Schuylkill canal was brought under
Gowan's management in 1869 and in the
opinion of the witness was very expen-
sive and unnecessary purchase. The witness
said that the total amount of the blanket
mortgage ON the coal and iron company's
property was forty million dollars.
Does the present stock ard bonds repre-
sent the money actually paid III on the work
done?"
The witness replied that the company bor
rowed fifteen millions to pay dividends it had
no t earned, and gave the money away The
loan was secured by bonds, and those securi-
ties didn't represent anything except stock
gambling operations.
Then" said Chairman Tillman lis not
the company in arranging its business so as
to meet its interest obligations and expenses,
charging the public to pay the interest on the
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?"
Smith said he supposed that was true.
The witness stated that an enormous debt of
one hundred and sixty millions had accumu
lated since 1870, caused by doing II losing
business and borrowing money right and left.
The nature of the company's business had
been changed. The accounts had been
crooked, the debts concealed, and the charac-
ter of transactions altogether revoutionlzed.
The witness sold his stock because he had
been assessed. He didn't think he would get
his money back if he had held the stock and
paid the assessment He had sold at 32 "a and
paid SO assessment, SO he netted % }-4 for
his holdings.
The witness was asked questions leading
up to any expression of his ability or
of the Reading Company to pay its
debt and the value of its securities. He re-
piled that he would not own dollars
worth of its bonds except very early ones.
The others are worthless and the company
cannot pay its debts When he was asked
further whether he thought the road would
go back into the hands of the receiver,
he said ''Yes, within a year from present
Indications.
General Superintendent |. A. Sweigard
was next called and detailed the trouble be
tween the company and the men, which
D.rt ptnl,,,, s,f,f1 STR 10 nd
the strike on the entire system.
The men broke their agreement not to refuse
to do work until there had been an investi
CATION. The most important point in his
testimony was his denial of having tricked
the men by telling them to go back and then
break the agreement, as claimed by John l..
Lee. leader of the strikers. Before the com
mittee he also denied that he summoned Lee
from Pottsville and attempted 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 didn't know whether Lee was
paid bv the Knights at the same time or not
The committee will telegraph for Lee 10 APP
pear before them tomorrow to explain.
President Corbn was recalled and sub
iected TO an examination that rufiie him con-
siderably. His attention was called to the
requirements of the charter of the Reading
Railroad Company that its president should
reside in Philadelphia
Corbin said Il live here.
Where else:" was asked.
Il have resided in New York, New Hamp-
shire and Long Island as well.
Mr.. Anderson-''W Where do you have your
washing done.
Corbin, indignautiy-''l think 1t is de'illsh
impertinent to go into my personal affairs.
Corbin appealed to the chairman and was
told that it was his own pleasure as to an
swerirg Gu >tions.
Dropping this line of inquiry the commit
tee asked about the former financial diiheui-
ties of the Rea ling railroad
Corbin said the last dividend OF the COM
panv was paid in 1876.
And" said Chairman Tillman. lit will
be cold day when it lays another
/ ..Corb,n objected to this sort Of inquiry.
/ Il snpposed" he said testify, beginning TO
s lose hi. temper that this vas a fair inYesti-
gatol. didn't think you came here 10 per
sonallv abuse everybody connected with the
: Reading railroad and call them thieves and
robbers.
/ Chairman-..I don't do that. am gen
( ,leman. and can answer for what say ol
do.
/ Well said Corbin, Il will answer such
questions to the people who own the Reading
railroad, and not to the public who have nc
business nor interest iu it
Corhiu absolutely denied any knowledge
whatever OF any combination now or ever to
! limit the output of coal and keep up the
prices.