New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-13
MR.. M'LE0D ON THE STAND.
WHY THE COAL COMBINATION WAS MADE
HE ADMITS THAT 1T WAS TO REGULATE PRICES
BUT SAYS THEY WILL NOT BE INCREASED

session yesterday at the Hotel Metropole There wer
present General Martin 7. Mcmahon, chairman JACOB
A. Cantor, George T. Erwin Patrick ii. McCarrer
and Edward p. Hagan, Of the committee. The counsel
OF the committee Daniel Griffin, OF watertown. tele
craphcd that he was unable to arrive here In time
to attend the meeting, owing 10 the snow blockade
resulting from the storm IN the northern par
Of 1e State. His place was occupied by Tnomae
Jackson.
The witnesses examined were George A. Nc
Leod president Of the Philadelphia and Reading
Railroad Company J. Rogers Maxwell, president
Of tbs New,Jersey Central Railroad Company
and George F. Baker president OF the First National
Bank Of NewYorl City, the last two being also re-
Gently elected directors of the Delaware Lacka"anna
and Western Railroad Company. The first witness
sworn was George A. Mcleod, who was examined by
Mr. Jackson, On behalf Of Chairman Mcmahon. MI
Mcleod said that the leases had been made by the
Reading Railroad Company Of the New-Jersey Cen
trail the Lehlgh Valley and the Port Reading roads
lie asked If the stockholders OF the Fort Reading
road substantially the Same as those OF the Pha-
delphia and Reading lie replied that they weie NV
that IN fact Of the securities of the Port Keadns
Company were owned by the stockholders of the
Philadelphia and Reading.
THEY ARE FAVORABLE TO EACH OTHER
Q.-what is the relationship between the two COM
nanies? A--The stock of the Port Reading Company
is owned BY a construction company, and that com
PAW in its general policy Is favorable to The Phadel
Q.-What the provisions OF these contracts IN
general way A.The Reading Company leases the the
fchlgh Valley road for period Of goo years In the
ordinary way guaranteeing per cent upon the stock
for certain period and per cent thereafter, ana
after the per cent has been earned the net revenue
o~Deos apy control over the general managsmssE, s
terms of this lease A-No, sir.
Q-isnt It practically consolidation Of the prop
simple N0t we sRa manage the Company as We
would under any other lease .,e...-
Not Officers Of the Leiigh Valley Railroad Com
pany They retain their organization, as any leased
and employ any person they think In the interest
Of the company should be employed or disehaIged; q;
DIN the course Of that management VIII the
several departments be under head, as, Tor ex,
ample the passenger and freight departments-tha,
Is 70 say, is 1t in your power to TX that' A'-lV IL
S@Is that true with respect to the contract be
tween the NewJersey Central and the Port Reading
road A.-Yes sir; believe it Is
fact that t& yse Tod s the Een
trail and Port Reading have prsctiea'y, |le y G0r
s o Inc of state as 'S 81 to sS0 f
THY TRANSPORT OVER oNE,HALF THE COAL
o.-Isn't that true with reeam 10 the anthracite
coal business1 A-No sir They have a majority
about per cent Of the majority Of the anthracte-
that Is about per cent over one-half
Q.-Under these leases between these four roads
Is It practicable for one management absolutely to
s sSnssG' t A sons r. Oh coal '' VI
9T gpso explain r how be That rraaS cn Se
,foads we control by u.s. and the roads controlled
by other people suppose it would be regulated ny
what op By the the roads s ySn cop n5sS
The Charman-What is the relation Of the Con-
strncton Company Of the Port Reading road to the
Reading road Attic officers are friends Oh the
o.-Ae they not idcntical' Ain some cases
8. What are the other competing lines in the coal
trahcl A.-The Pennsylvania Railroad Company
o%re YOU at liberty to state whether Of these
f ing the s0e continuation maSf ArNo. sir.
to onr tes Rh sG rSa %Gud Affect
and fackawanha Delaware and Hudson as to the
SgY s1s Q. vs that ana P sssn
recently IN the directory Of tho Delaware and lacEa-
those tWo roads thought that their interests would be
Ssn. f s st Gr Ts s pu aS " hr
monions policy between the different roads road will
he sdoSled i" by the the other ' rods AWe hope
o.-Do yon know how the price Of coal delivered in
latedi $50 far as regulating IT, don't think have
had much 10 do with IL. The demand for coal mas
regulated the price think.
HOW PRICES ARE FIXED.
OSo far a these railroads affect the price OF coal
that Is the of transportation How is that fixed
AThe transportation rates have not been changed for
several years the rates have been In force for ten
years. They are fixed BY consultation among the car
rers. and under these leases they will be hAed the
The Chairuan-I fear there has been occasional
broken loose from the regulation, have they not :
ANot One they have all charged the same tolls for
o.-Under this arrangement, do understand
viii meet AZ formerly 10 adinst tie price of transporta
ton Of coal A.-Preciseiy.
: OILS the Reading road producer Of coal9 A.--No
SIR the PHILADELPHIA and Reading Coal and Iron Com
Pany produces a large quantity OF coal The Coal ard
Iron Company's capital stock is owned by the Phla
0.-To what extent is that Philadelphia and Reading
the entire output do they supplyl A-Abou. 20 pei
cent, possibly less.
'proportiOni .A.HThe Lchigh Valley produces sriaI
PROPORTION; thet is, their coal company does.
and Lehgh Valley our company carries less for pro-
Reading Is produced by the Philadelphia and Reading
Coal and Iron Company.
Q.-Does not this arrangement between these com.
psnies put It IN yonr power to raise or lower the price
Of ooall Al think not do not believe could
the other roads.
COOPERATION MIGHT BE EASIER NOW.
Q.-And do you think that that cooperation Of the
different managements would be Just as difficult to get
as before this arrangement was made? A.-Possiby
not.
o.Are the several coal fields reached by these differ.
ent lines competitors in the coal market? / mndcr.
stand these roads run TO different parts OF the
coal regions and transport the commodities from tho
various mines. Now, l wish to know IL these mines
so reached are competitors in the coal market! A.
Certainly.
O-Will this combination Of roads In any wise affect
the competition between the several mines? A.-You
mean. do you not. In your question. whether 1t will
affect the consumers Of coal?
Ono. Sir mean the price at any point Of the
transportation; whether it Will be higher or lower al
any point or at any time from the moment Il Is mined
until IL IA delivered to the consumer? Alt may
affect It. and undoubtedly Will at points.
O.-Wlat points A.--There are hundreds Of them.
The object is raise the price of coal the objoc;
IL TO eGualze price OF coal Coal has been selling
In some places lower than II ought to sell and