The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-11-25
PROBING READING.
President Mcleod Before
the Interstate Com
merCe Committee.
ALL ABOUT THE BIG LEASE
Why the Price of Coal Is High
Telegraph News of the World.

NEW YORK. Nov. 25, 1S92.-The sub
committee Of the Interstate Commerce
Committee, engaged in investigating the
Reading combination, met this morning
in the Grand Jury room OF the Federal
Building. On Tuesday session was to
have been held, but owing to scarcity
or witnesses postponement became
necessary.
AT that time 1t was announced that
Sam Sloan, President of the Lackawanna.
mad been subp9naed, but owing to
serious illness could not appear. This
TACT was announced by the committee,
but the next day President Sloan denied
to reporter that he had been taken i'll
or was liable to attend to business as
usual.
This morning it was stated that two of
the most important men in the biggest
railroad deal on record would testify.
Ihey were President Mcleod of the
Readlng Company and j. r. Maxwell,
Wee President of the Jersey Central.
Both men arrived early.
Inc members of the committee who will
40 the Investigating, il there is any, are
W, Wm. >. bs. Dem. Of Brooklyn; Geo. d.
wise, Dem, OF Virginia; Bellamy
Storer. Rep. of Ohio: Josiah Patterson,
Dem. of Tennessee and John Lind, Rep.
OF Minnesota. Charles Z. Beach, Jr., is
counsel for the committee. Messrs
Stoter and Lind were the absentee mem
bers this morning.
hrst witness. He was sworn, aud testl-
ned that he lived in Philadelphia
and since June q, 1890. had
been President of the Reading.
For period covering five years previous
TO That time he had been the CON pany's
vlce-president and general manager un-
der Austin Corbin.
He "a also president of the Philadelphia
and Reading Coal & Iron Comp ny, cap
ltalized at S8.000,000. and owned by the
heaolng. This company, the witness
acknowledged, owned more than 317. 900
acres of coal lands in Pennsylvania aud
tWo-thlrds of the whole is unimproyed.
Mf. Beach offered in evidence q COPY of
the lease of the Lehigh Valley road by
the Reading an the others, entered into
by the five companies in the combina-
tion.
Subsequent to the execution of these
leases, the Reading entered into agree
ments with Independent coal operators
purchasing their output and paying them
oo per cent. of the prices realized at tide
water.
The prices of coal at tide. Mr.. Mcleod
testified, were fixed by the producers'
sales agents, who meet and determine
the question. On two occasions he had
been present at these meetings, and had
met representatives from the Erie, New
York, Ontario and Western, Jersey Gem
trail, Coke Brothers, Pennsylvania Com
pany and others.
AT these meetings there was a pepera1
discussion of the trade and conditions
1t was in June or July that Mcleod
met these men. and subsequently prices
were chang ged and made higher. Every
month since the producers representa-
tives have met. but according to Mcleod
no advances have been made since July.
Mr.. Mcleod gave his testimony in a
very low voice, and fingered his eye
glasses rather nervously. Mr., Beach
conducted the examination and retravel-
led much ground gone over by the State
Investigating Committee.