Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-30
Coal President Admits That He
Names the Price of Hard
Coal
THREATENS A SO CENT RAISE
He of the Divine Right Episram Ad-
mits Before the Interstate Commerce
Commission That the Coal Carrying
Roads Stand Together on Prices But
Says They Do Compete.

Reading Coal company, yesterday tolo
the interstate commission,
hearing the complaint against the an
thracite coal carrying roads, that ne
the autocrat of the coal trade in
the United States. While insisting that
there was no such a thing in existence
as the coal trust, he said that he felt
that the dealers associated with him
were the strongest people," and that
he personally fixed the prices of coal
and compelled the other companies to
abide by his decision. He admitted that
this action perhaps was arbitrary"
but said he felt that it was neces-
sary."
MI. Baer admitted that the coal trust
had allowed the miners to go out rather
than raise their wages, altho he had
stated just before that the reason the
price Of coa was increased was eau
the cost of production had increased.
Then when asked If it were true that
he had fixed the price at $3.50 a ton,
he said he had, and added that. on
May /, he intended to begin raising the
price until it reached SIS a ton.
The day was devoted almost entirely
to the hearing of Mr.. Baer's testimony.
Mr.. Baer estimated hat 100000 tons
OF coal are carried annually by tho
Reading system. Mr.. Baer said he pro-
noted the plan to purchase the Temple
Iron company. and that six railroads
were interested. He suggested the per-
centage of the different companies and
their directors accepted 1t.
The plan, he said, was not so broad
as to make the Temple Iron company
the sales agent of the six companies
in New York, but was intended to get
rid Of the commission men. His idea,
Mr.. Baer said, was not to maintain
a uniform price for coal at Underwater,
but to get rid OF the commission of
10 cents a ton for selling coal. He had
reduced the expense Of selling.
But o have not succeeded in re-
ducing the price of coal TO h con-
sumer?" asked counsel.
No. replied Mr.. Baer, because you
and your friends have succeeded in
raising wages. and getting up he cost
of necessities SO that profits are less
Asked il the Temple Iron company
raised a fund OF $15,000.000 to buy more
collieries. he said 1t was not for the
purpose of buying more collieries. He
was opposed to loading up with more
collieries.
The capital stock of the Temple Iron
company, Mr.. Baer said. was deposited
with the Guarantee Trust company of
New York under a voting agreement,
and they issued certificates which We're
held by three or four hundred different
persons. The directors of the Temple
company control the different collieries
in the Temple system.
Il do say most emphatically," he
went on, there has been no pool, and
no combination to regulate the price or
output Of coal between the railroad
presidents since I have been president
of the Reading system"
Mr.. Shearn read to the witness a part
of the testimony he gave the investtga-
1900, when he explained that the 60
80 per cen agreement between the
railroad and the local companies was
the result of Senator Hanna's appeal
that a continuance of the strike meant
danger to the McKinley-Roosevelt
presidential ticket. Mr. Baer said it
was true.
The price of coal sold by the Phila-
delphia and Reading Coal company, he
said was fixed after a general consulta-
ton with the general coal agents and
sales agents. The other companies
pursued a like course. He added:
II thought we were the strongest
people. and I fxed h price, and com
PEELED the other dealers to do the same.
They accused me of being arbitrary,
and I admit that perhaps 7 was arbi-
trary. but I felt that 1t was necessary.
After the strike several OF the compan-
les complained they could get a better
price than I had fixed for the Reading
company's coal. They asked me to
raise the price, but I refused, and they
had to come down to our price"
He said that the price of coal had
been raised so cents a ton because the
cost of production had increased. The
Reading system was not earning fair
because of the low price real
ICED on its coal. There is, HI said, no
railroad in the United States which has
SO much business makes SO little profit.
Asked why the men were locked out
of The mines, he said:
They refuse to work unless we give
for seven hours work the pay Of ten
hours work, and we are not going to
do It."
"But you have fixed the rate at $3.50
a TOM"
Yes, and on May ! I am going to
advance the price 10 cents, and try to
work it up to So. That will be a fair
price, and give US a profit. II ] can't
get that price I'll have TO come down.
If the market will take it at S. the
price will not be reduced"
Mr.. Baer said he believed he could
the coal market. He said he has
not consulted any of the other coal
company men, but he does not fear if he
asked S. u ton that the other compa-
MES will ask any less. That would
be foolish, if they did, he said.
"And yet you say there is competi-
"Of course there is; fair and square
competition" Mr.. Baer replied. 1T is
not necessary that competing mer-
chants should cut each others throats."
DO the railroads actually compete
for business in the coal regions"
.In the sense of building lines to the
collieries they do compete. In the
sense of underselling each other they
not. I do not believe In trying to
take business where the action must
entail a loss on an existing company
without any certainty OF profit to the
newcomer. The world Is big enough