New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-18
THE AFFAIRS OF READING.
SERIOUS CHARGES OF AN Ex-PREsIDENT.

SERIOUS CHARGES OF AN EX-PRESIDENT.
DECLARING rHe RAILROAD REPORTS FALsTPr.D AND
THr ACCOUNTS COOXED-MR. SMITH SAYS IT's
sTocK-GAMBIING MACHINE CoRBIN HAS
LIVELY TILT WITH THE CONGRESS-
MEN OTHER TESTIMONY.
PHILADELPHIA. Feb. H. President Charles E.
Smith, OF the Reading Railroad Company, WAS the hrst
witness this morning before the Congressional Com
mittee which ia inqurng 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
1901 to 1862 and director until 1915 He resigned his
orhp because he discovered In 1876 that the COM
pany was publ hng false reports and accounts In the
in crest stock gambling The company he had found,
had borrowed Sl5,OO0000 to pay dividends which had
not been earned He specified account of 2s0 600
in the report Of s74 which he sad was false and mis-
leading Mr. Smith said that the railroad company was
managing the Coal and Iron Company at the same time
Most Of the coal property WAS boight on crelit ana
double mortgages given. one a regular mortgage and
the other n second mortgage secured by the bonds
issued. The railroad company hal power under its
charter go into the mining business 1t depended for
its mining upon the Coal and Iron Companys
charter which contained clause providing that Its
stock could held by railroad company Witness said
that the total amount of the blanket mortgage on the
Coal and Iron Companys property was S4o0oo.O0o.
as ere any law. asked Chairman filln sn. which
gives the Reading RAILROAD company the rght 10 "iho
coal 2"
wltness-No SIR bit they do IL through the Coal and
Iron Company.
"we is there any law enforce the State ConstItu
ton which fDrbds this ."
mo. sir"
Mr. SMITH MAKES SERIOUS CHARGES
The witness said that the company had borrowed
s15 900 900 TO pay dividends which not earned.
ana that securities did represent except
"A stock gambling operation.
"Then." said Chairman Tman, Is not the company
in arranging TO meet its interest obligations and lis ex-
pees charging the public to pay the interest on money
which the company received and VIII ich was used
to foster gambng and is 1t that some Of the
money is being wrung from the miners =! Tie witness
said that lie supposed that that was true.
Entering into details OF the cOmpanys property he
said that In company perfectly solvent and
paid per OF earned dividends and the interest
debt (which less than $9O0oooo. twas as pros
porous as any road In the country In 1870
How then. has 1t happened lat this present enor
nous debt OF 100000 900 has since been accumulated
ami the roal sent twice into bankruptcy :"
"By doing losing business borrowing money.
Accounts have cooke and debts concealed and the
character of tho transactions has been altogether
changed"
The witness was asked number OF questions leading
expression Of his opinion rs 20 the ability OF
the Reading Company to pay debt AMI tie
value OF its securities lie replied 1naly would not
own dollars worth Of its bonds except the very early
ones The others are worthless The company cannot
n my opinion pay its debts" He thought the road
would into the hands OF receivers in year.
sUPr swEIGAGD LENDS A HAND
General superintendent, sweigard WAS next called and
said he had been in the employ OF the company for
twenty four years. In answer to Mr. Parker he SAID:
"The difficulty began on the railroad about December
26 when the complained Of long hours. insufficient
wages and many other things. They first complained IN
90 h.txua aH tha natta pr
fonr months after that of the quit work. CON
trary to the agreement they had made not 70 quit u1i
any circumstances. succeeded IN bridging maet CTS
over for two three months Finally some OF the men
refused to take out an engine ami discharged them
few days after that OF the leaders told me that
unless rein.tated these men there wnudbe trouble
finally agreed however, that If Lee Cabil and sharKey
would 90 before every assembly ana state th IL every
man VINO refused to do work wouLi be discharHeu,
could have these men reiustatei after three nohtus
These men are now in the employ Oi the comp my tie
then detailed trouble Leading to the strike at torI
any strikers and declared nat they had employed
Italians ut Port RchlnQnd
CoRBIN REFUSES TO BIZ TwfrTED.
President Corbiu was again asked to testify. Mr.
Anderson called his attention TO tue requirement. OF the
charter that the president of the company must be res
ident OF Pennsylvania, and askei him where ne lived
live in philadelphia; hut have residences III New-
York. New Hampshire and Long Island
Mr. Anderson Where Is your washing done -, :,
Mr. corbn ,nnK * II tbt !, deyf'h
I'm trying to tell ysu all know ,,., co,,,,,,, ho,
been embarrassed for great many years. u"' II "o''
Periodically, yes, SIR" He said further that he % would
consider as correct everything Mr. emitl had sad on
that subject. lie thought the last dividend palo was III
Mp Tiilman isn't it fact that It will he long
cold day before the COMPANY pays another dividend ,
.,ockhoders .hal tell you that when tell the stock
holders and when am ready to answer the question:
TuRUsTs AND COUNTER THRUSrS.
When asked to give the debt OF the company Mr.
Corbn referred the committee to printed statement oil
the company. which was read
did you not testify Wednesday that the debt was
I'm the neighborhoOd Of 5000 900 -
Mr. Cor6inf cannot see what business OF yours II i9
It is none of your business either, when we pay pay
don't thlnk you treating me fairly. might ask you
explain Yourself IN Ns ,e%R Ns% YORK e tSa
branded the people 1ected with the Reading karoa
'cWWh aWhV air" said the CHAIRMAN am apOve using my
public position to abuse anybody DO you decihe 10
testify before this committee !"
Now want to ask you plain question. ana M wahe
n plain direct answer. Unless there is some pooling
Which there isn't" interpolated Mr. Corbin
Anong the coal miners and the common carrier =
bv which railroad aud coal ami iron companies sna
get profit from mining aud transporting coal WIN a"t
debt and 20 back into the hands Of the receivers,
Where win you get an income from sufficient TO meet
Your CovbnIhe increase will be derived from various
sources.
! MIR Tillman. Have you any assets -. . 1854.
Mr. Corbin.-You have no right to ask me such qucs
| ton. and decline to answer A., ,,,. ,,rd
Indge Chinman- The one question in the public mnd
"a whether IL is ia the interest OF the company
have "A strike at this time ,.. 80 ,,,,.rs,,ra that
Mr CorDin-t wish the committee 70 onuer n1d 49,
am ready to furnish any information can. out uom @
& a1n rho, chit an body has know the nnancia con
! dillon Of the Reading Railroad Company except 'no
/ siookholders and bondholderA
! DECLARING THE END Of THE STRIKE
Tn railroad circles this afternoon q rumor gained con-
adorable creence that the strike OF the miners was at
an end It caused furry in the Stock Board and keaa
ing went up dollar shar~ Joseph Parker. OF the Con
gressional Committed, asxed Mr. Corbin II the rumor
/ true. A.. &. 4.
Mr. Corbin replied: have no Information that u !:
over Just yet but have reliable Information that II WI
be over before days am satisfied tha Delsre tha'
time all our men will DO back work aud people getting