Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-02-22
Testimony In the Congressional Inquiry
Into the Reading Strike.
A Disgraceful Story OF 1fsmanagement
for Stockjobbing Purposes.
Result of Doing q Losing Business and
Borrowing Right and Left.
How the Company Acquired the Coal
Lands That Are Its Ruin.

Congressional Reading strike Investigation
committee. Smith said he had beef
President of the Reading Railroad iron
1851 to 1869 and director until 1876. HI
resigned the d~irectorship because he dis
covered that tho company was making
false reports and cooking up its accounts
in the interest OF stock gambling. In tn
reports the truth was suppressed, thu
floating debt as not reported and while
tho road was not earning any money il
was paying dividends on it's stock. Some
oithe directors were gambling in the stock
! and other influences in the management
we're compelled to pay these %unearned
| dividends. The company had borrowed
SIS. OOO. 900 to pay dividends which had
not been earned. Smith said the railroad
company wal managing the Coal and Iron
Company at the same time, and he OK
planned how the railroad company OBJ
tanned possession of the Mining Company.
In reply to q query If the company in ar
ranging it's business to meet it's obligations
was not
FORCING TUE UBL
and it's employees to pay interest on the
money which the company Dever had re-
ceived, the witness said he supposed it was
true that in 1869 the company was doing
a profitable business, was perfectly solvent,
paid 10 per cent earned dividends and the
interest on it's debt which was less than
$4,000, 600.
"How, then, has it happened that the
present enormous debt of SIG, OOO, 600 has
since been accumulated and the road sent
twice into bankruptcy"
by doing a losing business and borrow
ing right and left."
Smith was then asked his opinion as to
the ability OF the Reading Company to pay
it's enormous debt and the value OF its
securitie He replied: II would not own
very early ones
THE OTHERS ARE WORTHLESS.
The company cannot in my opinion pay it's
debts and will 60 back into the hands of q
receiver at least within a year." After
Smith finished, Austin Corbin was recalled,
and during the examination grew angry and
refused to answer many of the questions.
He denied the right of the committee to 60
into the roads private business. He de-
clined to say how the company could get
along without its coal business. After a
long series Of interrogations, Tillman
DREW FROM THE WITNESS
a statement that the interest charges and
other fixed charges of the company
to ten million dollars a year,
and Corbin stated in reply to further ques-
that without the coal trade the
company could earn it's fixsd charges, which
were over seven million dollars.
But do you expect" was asked, ito
make more than ten million dollars with
your miners out?"
Mr.. Corbin: No, but our miners will be
hack and il your committee will stay here
Corbin denied absolutely that there wal
any ground for the assumption that it was
interest of the company to have a strike
at this time; that it might be
ADVANTAGEOUS TO THE COMPANY
have a strike in view OF the company's
financial condition, in order 70 offer that
an excuse for it. The next witness was
Thomas N. Richards, general sales agent OF
he Reading Coal & Iron Company. His ex-
developed that the price of coal
1t Philadelphia had risen from 81 to 81. rs
yer ton since the strike began. The next
witness was George W. Jones, former vice
PRESIDENT of the Reading Railroad. Jones
Inferred into a history of the acquirement |
the coal lands by the Coal and Iron CONF
any under contract of the railroad com.
any. He said that this was Mr.. Governs
.heme. Robert McAlmont had loaned Mr..
iowen $4,000 shares of Reading Railroad
ompany stock in 1869 with which to mr.
base coal lands. This was the beginning of
ne policy which led to tho acquisition of
Schuylkill coal lands, which ultimately
q the railroad company into the hands Of
receiver and
PILED UP ON IT
debt OF over one hundred million dollars.
o corroborated the statement of Mr..
NTH made that in 1869 the Reading
Company had only a small debt. !
as paying the interest on it and earning !
lying dividends of 10 per cent. It was I
ailng in coal lands and the purchase of
al n which could not be utilized for :
any years and attempting TO force a !
lall part OF them to pay interest on the I
lo'e investment which had wrecked '
g company. Witness related at soma c
18th the history of several a
al combinations in the paet which had 8
en- made to restrict production and thus T
IKE nigher prices. He said that the last q
9 dld this by mutual agreement, to shut a
wa tne mines q certain number of DAYS q
the year. Until he heard the testimonv.
he had been certain that this K
t OF combination existed now and that u
adlng was a party to it and he believed q
notwithstanding the testimony OF wit. l
ses before the committee, q