Los Angeles daily herald., 1888-02-18
THE STRIKE SETTLED.
Work to be Resumed in
the Reading Mines.
THE CONGRESSIONAL INQUIRY
Startling Evidence Given Regard
ing the Operations of the
Company.
Associated Press Dispatches to the HERALD

Associated Press Dispatches to the HERALD
PHILADELPHIA, February LEX
president Smith, Of the Reading Rail-
road Company, was the first witness
to-day before the Congressional Com
mttee dealing with the investigation
Of the strike. Smith said that he had
been president Of the Reading Rail-
road from 1861 to 1869, and director
until 1876. He resigned the director
ship because he discovered that the
company was publishing false reports
and cooking up its accounts in the
interest Of stock gambling. The
floating debt was not reported, and
while the road was not earning
any money, it was paying dividends
ON it's stock. Some of the directors
were gambling in stock, and other
influences in the management were
compelled to pay these unearned
dividends. The company had bor-
rowed $l5,000,O00 to pay dividends
which had not been earned. Smith
said that the railroad company was
managing the coal and iron company
at the same time, and he explained
how the railroad company obtained
possession Of the mining company.
Witness was asked his opinion as to
the ability OF the Reading Company
to pay its debt and the value of its Sc
curities. He replied: II would not
own dollars worth Of its bonds except
the very early ones; the others are
worthless; The Company cannot in
my opinion pay its debts and will go
back into the hands OF the receiver
within the year."
CORBIN CALLED AGAIN.
Corbin said that the interest charges
and the other fixed charges amounted
to $40 ,0O0, 900 yearly. He denied that
it would be advantageous to have a
strike, in view OF the Company's
financial condition, so that it might
offer that as an excuse for such condi-
ton.
The testimony of Thos. M. Rich
ards, general sales'agent of the Read
ing Coal and Iron Co., developed he
fact that the price of coal at Philadel-
phia has risen 81 to $1.75 per ton
since the beginning of the strikes.
Geo. w. Jones, formerly vice-presi-
dent Of the Reading Railroad Co.,
Eaid that Robt. McCalmot loaned Mr..
Gowen 1000 shares Of Reading Rail :
road stock in 1869 with which to pur-
chase coal lands. This was the be-
ginning Of the policy which led to
the requirement of the Schuylkill coal
lands, which ultimately led the COM
pany into the hands of a receiver and
piled upon it a debt of 500, 900, 900.
In 1869 the company had only small
debt, was paying interest on it and
earning a paying dividend of ten per
cent. He related the history of
the several combinations made to re-
strict productions and thus make
higher prices. The st combination
agreed to shut down the mines GER
tain number of days in the year. De-
spite the statement of witnesses to the
contrary, he thought that such combi-
nations existed now, and that the
Reading was party to it.
SOON TO BE SETTLED.
Secretary Duffy of the joint COM
mittee said to a reporter to-day: 81
cannot give you any details, but the
Reading strike is now to be settled in
short order"
| NOTHING DEFINITE KNOWN.
New YORK, February 17.-Max-
well, OF Austin Corbin's Office, said
this afternoon: 81 have received a
brief message from Philadelphia, tc
the effect that the Reading strike is
ended. This is all we know about it
Corbin has not supplied us with par.
ticulars.
LATER-PEACE AT LAST.
PoTTsvILLE, February IT. Master
| Workman Lewis, representing the
coal miners, arrived here this evening.
A joint committee ratified his action
with President Corbin, and an ad-
dress has been issued ordering the re-
sumption of work at all the Reading
Company's mines on Monday. The
order Calls on the miners of the Le-
high Valley region to remain firm
until the coal companies in that