The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-04-25
HOW COAL IS MANAGED.
Mr.. Baer on the Stand Denies That
There Is Any Violation
of Law.

New York, April 25.-President George
F. Baer of the Philadelphia & Reading
was before the Interstate commerce COM
mission yesterday in the coal roads hear
ing. Is,
The Philadelphia and Reading Coal com
pany and the Philadelphia & Reading
Railroad company, he said are operated
by voting trusts. the personnel Of which
Is different, except that J. p. Morgan is
member of both. At times contracts
existed between him as president Of the
railroad and as president Of the coal COM
pany. Baer said about So per cent Of the
mining properties of the anthracite region
is owned or controlled by the Philadelphia
and Reading Coal company. About 21
per cent Of the coal produced Is owned by
the Philadelphia & Reading company.
Shearn read to the witness the section
Of the Pennsylvania constitution which
debars companies Incorporated as carriers
from engaging in the business Of mining
| or manufacturing, and asked If the opera
ton OF the Reading Coal and Irop COM
pany is not in violation Of that provision
1.-The Philadelphia Coal and Iron COM
pany exists under the, statutes of the
state of Pennsylvania replied Baer. 1T
does not evade any laws Of the state nor
| Of the United States. l shall be glad to
have the question tested in any form you
may select. There Is no application of
| that provision of the Pennsylvania consti-
| tuition to our charter. That question has
been decided in various courts. The cor
porate franchises were granted prior to
the adoption Of the new constitution, and
the courts have decided that those char
tiers are inviolable." ss .. 49,, %-a.-.,+
Baer added that some Of his contracts
| with the coal operators were purchasing
and some transportation. The coal was
purchased by a railroad company, which
had authority In its charter to deal In
coal.
1t first occurred to him to buy up all
the stock Of the Temple Iron company
when lie wanted the iron company char
ter to buy the Simpson and Watkins COL
heries. Watkins, he said, had scheme
to establish great freight company in
New York to buy and sell coal and con-
solidate the different sales agents with one
company.
Witness wanted to head off the proposed
| independent railroad. It would have hurt
his companies and the public because the
cost OF carrying coal would have been
high. If like conditions arose again he
would advise his stockholders to do again
as they had done.
Baer Denies Violation of Law.
Gwen if it be in violation Of the law?"
| asked Shearn.
Il welcome you to proceed in any court
Of the United States" said Baer, rising
show we have violated any law we will
undo it. If we are guilty go to the prop
er forum and prove it. I'm tired of you
people, who dream you represent the peo-
| pie, trying to make out that all business
| men are trying to evade' the law
Does your statement include the pres
| ident Of the United States?" interrupted
| Shearn.
Il have no criticism to make of the
president atoc NJ
Baer.
further examination of Baer was post
poned until next Wednesday.
Rates on Rock Island.
| Fred F. Chambers. secretary and Or
| lando G. Post, auditor of the Delaware
| Lackawanna & Western were called, but
| on advice of counsel refused to produce
! or discuss any contracts entered into by
| their company and the coal mining COM
! panies. - L
E. D. Sturgis, coal operator of Scran-
| ton, refused to produce similar contracts.
Mr.. Sturgis was one of the promoters of
| the proposed independent railroad to tide
water. He said the scheme was dropped
| when the railroads offered the operators
| better terms.
Mr.. Sturgis denied that the coal opera :
tors prof1ted by the big prices paid for
coal during the strike. For one month,
ne said. he got SO "a ton, but the large
prices were made by the retail dealers.
| The conduct of the large coal COM
panies,' he said. during the past winter
was most magnanimous. It hurt u.s.. but
1t benefited the public. The companies
| could have made millions of dollars but
they kept the selling price at IS at tide
water, and when we, the coal miners
thought we ought to get higher prices
because of the scarcity and the demand
the companies notified us that for three
months we were released from our con.
tracts and might sell our own coal at oul
| own prices.''