The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-18
THE CONGRESSIONAL INQUIRY.

cred in 1876 after an Investigation that the COM
pany was publishing false reports and cooking
MP its accounts in the interests of stock gam
bling. In the reports the truth was suppressed,
the floating debt not reported. and while the
road was not earning any money it was paving
dividends on its stock, which was accomplished
by borrowing money. Some OF the directors
were gambling in the stock, and
other influences in the management
were impslled to pay these unearned
dividends through vanity. The object OF the
gambling directors was plunder. The company.
he said, he found had borrowed SIS. .o0O. 900 to
pay dividends which had not been earned. Mr..
Smith said that the railroad company was man.
aging the coal and iron company at the same
time and he proceeded to explain how the rail
road company had obtained possession OF the
mining company. He said that the latter was
virtually the creation of tho former. under the
presidency of Mr.. Gowen. The original charter
of the mining company was obtained under the
sitle of the Laurel Run Improvement and Min
ing Company. The bill had been put before the
Legislature in that name, so that 1t would not
be known the Reading bill, but as soon as
the bill passed its name was changed TO the
Reading Coal and Iron Company There was
no stock issued until the name was changed and
the Reading had control
(which gives tho Reading Railroad Company
the right 20 mine coalP
TEs Witness-No. sir, but they do it through
the coal and iron company.
''Well, Is there any law to enforce the State
Constitution, which for bids thisf'
mo. SIR"
The Chairman-That, I suppose, is because
the railroads own your Legislature. Do the
present stock and bonds of the Reading road rep
resent money actually paid in or work dones
The witness replied that the company had
borrowed sic. 000, 900 to pay dividends which
were not earned-in fact, gave the money away.
This loan secured by some of the bonds.
and those securities did not represent anything
except q stock gam bling operation.
Then" said Chairman Tiliman. ''s not the
company. in arranging its business SO as to meet
its interest obligations and its expenses charg
ing the public to pay the interest on money
which the company never received, and which
was used to fostsr vanity and gambng2 Aud is
IL rs, srne that some Of this money 10 wrcng
from the minersf"
The witness said that he supposed that was
true. Going into details of the property, the
witness said that in 1869 the company was doing
profitable business was perfectly solvent and
paid 10 per cont of earned dividends and
the interest on its debt which was less than
$9.0 200.
How, them has it happened that this present
enormous debt of $780, ,0O0 600 has since been
ccumulated and the road sent twice into bank
ruptcyP
BY doing losing business and borrowing
money right and left The nature of the coIE-
pany's business has been changed. Accounts
have been cooked and debts concealed. and the
transactions have been altogether revolution
lied"
Chairman Tillman-A sort of a wreckage
business2
Mr. Smith-We1l. reckless bust ness, certain
ly
The witness then asked a number of
questions leading up an expression of his
opinion the ability of the Reading COM
pauy pay its enormous debt and the value of
its securities. He replied finally: Il would
not own dollars worth of its bonds except the
very early The others worthless. The
comnany cannot, in my opinion. pay its debts"
When asked further as to whether he thought
the road would go back into the hands of re-
ceiver. he said: 'Yes aud that will happen at
least within a year. from present indications"
General Superintendent I. A. Sweigard was
testimony was his denial of having tricked the
men by telling them to 60 back and then break
ing his agreement, claimed by john L. Lee,
the leader Of the strikers. before the committee
He also denied that he had summoned Lee from
Pottsville and ATTEMPTED TO bribe him. He said
Lee had for two months before the strike been
taken from the machine shop and employed by
the cor pany along the system to keep the hot
heads" from striking He did not know wheth-
Lee paid by the Knights of Labor at the
same time not The committee will tete-
eraph to Lee to appear bsfore them tomorrow
and explain.
The committee then recalled President
Corbu, of the Reading Railroad Company. His
attention was called TO the requirements of the
charter of the Reading Railroad Company,
which required that Its president should reside
in Philadelphia. Mr.. Corbin said: 81 live here"
where else" was asked.
81 have residences in New York. New Hamp-
shire and Long Island, as we'll.
Mr.. Anderson--Where do you have your
washing done2
Mr.. Corbin [indignantlyi--I think that it is
devilish impertlnent to 60 into my personal af-
fairs.
Dropping this line of inquiry. the committee
sought to obtain from Mr. Corbin something OF
the history of the former fuancial difficulties of
the Reading Railroad Company. be said that
the last dividend Of the company was paid in
1876
And" said Chairman Tliman, cit will be
cold day when 1t pays another"
MIR. Corbin objected to this sort of inquiry,
claiming that the commitree had no power TO go
into the possibilities of the, future II sup
fair investigation. did not think you came
here to personally abuse everybody connected
with the Reading Railroad Company. aud to call
them thieves and robbers."
The Chairman-I do not do that. am gen.
tleman, and can answer for what do or say.
''Well.' said Mr.. Corbin. Il will answer such
Questions to the people who own the Reading
Railroad Company, aud not to the public, who
have no business and no interest in IT..
tie absolutely denied any knowege whatever
OF any combination now existing. or that ever
did exist, to limit the output of coal and to keep
mp prices AT this point Chairman IIinan
pressed the witness for a statement OF the inter
est-oearing debt of the company. Mr.. Corbn
grew angry, and re;orted that he would like to
know the grounds for published report that
tie chairman had called the Reading railroad
officers robbers and thieves, and reiterated bis
statement that he would hold himself responsi-
BILE to the owners of the road He denied the
right of the committee go into the roads
private business He declined TO say how the
company could get along without its coal bust
ness
After q long series of intsrrogatoriss. Mr.. Till
man drew from the witoess the statement that
the interest. charges and other fixed charges or
she company amounted to $4,000. QUO year,
and Mr.. Corbin stated in reply to further ques-
tioning, that wi thout the coal trade the COM
pany could earn it's fixed charges. which we're
over 81. 000 0o0
b.
more than $40 00e 900 with your miners outI'
Mr.. Corhin-No: but our miners will be back,
and if your ornmittee will stay here ten days it
will fnd them all at work aeain."
Judge Chapman said: .Mr. Corbin, Ii is the
belief among the coal miners, and has been
stated publicly, that il u the interest OF your