New-York tribune., 1903-04-25
WOULD RULE THE MINES.
no MAKE MORE MONEY
President Baer's Candor Before In
tsrstate Commerce Commission.


ing railroads. Mr.. Baer's examination WHICH
was conducted by Clarence J. Shearn. was
long ore and his answers to the many ques'cu'
nut to him were full and straightforward ne
said that the Philadelphia and Reading CoSll
and Iron Company and the PhIadelphla anu
Reading Railroad Company. both held oy the
Reading Company. were operated py No'As
trusts. adding that the only man who was d
member OF both voting trusts was j. P1erpon'
Morgan.
There is no contract between you as presl-
6ent Of the railroad company and you as presi-
dent Of the coal conpanyg' asked MI Snearn.
Indeed there is at times" answered MI.
Baer. ,
Mr.. sbearn read the section OF the Pennsyl-
xania constitution which debars companies III
oorperated as common carriers from engashls
.n the business OF mining or menulacIui ms W
asked if the operation Of the Coal ana IRON Coii-
many was not In violation Of that provision
..Tbere is no application of that provision OF
a. ,.o,,s4,+,+ion 70 our charter" Nr. Baer an
~-ne-as .eTvhe corporate franchises were granted
~,-so- IN the adoption Of the new constitution
- che courts have decided that those charters
are fnviolable. , .,
land your companies have been securing nc
different mines 20 dominate the coal sl1ua'ion'
.aThat ts not the purpose at all. The purpose
ss TO make the Reading system q. payanle prop
e-+v for its stockholders. We do aim 10 get aii
Che anthracite traffic and all the oiIuT1'iiiouS
traffic and all the other traffic tha' VIC 0"--
handle"
.sTn the belief that by dominating 'ne 0O--
,.,to,s 20, ,-o1,1d make more money!"
.ryvbz, OF course. The more things you can
nell II Won sell them ct a profit, the more money
you VIII make
Counsel then went into the simpson
ty.rs project to build Independent roau i01
carving the coal Of independent operators.
II never believed there was any intention 10
,,7fd that road" Mr. Baer said. L saw 'he
,.r,es of those who had pledged their coal 10
.be new railroad. but knew also that some Oh
those were begging TO buy their mines anu
have q way Of putting two and two together'
"And among those who wanted you to buy
.beir mines were Simpson & Watkins. 1 sup
pose" Queried Mr.. Shearn.
YES sir. among them were Simpson & wat
kins"
Tea bv counsel. Nj Baer described the Tenn
pIe Iron Company and its property as 1t existed
.n 1SoS-'o9. The company was capitalized at
s24oOO0. and employed about two hundred men
r7e could not remember how much Of the cap
,taI stock he owned in 1898, but he believed
that & was about one-fifth OF the total Some
IF The questions and replies that followed We're;
o-yhen did it first occ1r to you to buy I'd all
-he stock? A-when wanted the charter TO buy
m
iO-Whv die you want to buy out these colherleS!
A~AIr Watkins had a scheme or theory 10 esIaD- L
aS9 G seYi Coal to consolidate the different sales
agent, ,d With 18th Sns fR h e1d Fl WAS partly for
tbaf reason that We took the Temple company
o0And to head OF MI watkins,s indePendent er
road? Ayes; deceeoy sother M ero rasy a to y take
IRON Us cur business in the anthTacite region and
Etates ar railroad has the right to take legal means
70 that railroad had been built IT would have
resulted in competition? At woule nave 1 S5 ia
saaHsd bf in our Us hsyRg by G 9 99' M o0
o. II TG9ie 81 osr2g raT T it would have high
Mr.. Basr said II like conditions arose again
he would advise his stockholders to do again as
they had done.
Even If it be in violation Of the Iaw7' asked
.dr. Shearn.
'T welcome YOU TO proceed IN any court Of the
United States" said Mr.. Baer. rising and facing
the lawyer squarely. land If you can show we
have violated any law we Will undo it. Il we are
guilty, go to the proper forum and prove It
I'm tired of you people. who dream you repre-
sent the people, trying TO make out that all
business men are trying TO evade the law
Does vour statement include the President Of
4he United states?" interrupted Mr. Shearn
Don't answer that question" shouted Chair
snan Knapp.
II have no criticism make of the President
OF the United States" said Mr.. Baer, recovering
his coolness and resuming his seat.
In the formal answer TO the complaint the
Temple Iron Company had set forth that the
reason for its purchase OF the Simpson & Wat
ixins properties was to enable it to get coal for
.ts own purposes. MI. Shearn asked Mr. Baer
about this feature Of the answer which had
been drawn by ex-Judge Campbell
the Judge was wrong" said Mr.. Beer. THE
Temple Iron Company secured the collieries for
the reasons I have given-to relieve Simpson &
Watkins from the anthracite situation Many OF
NY friends were interested. Our associates saw
the advantages. and we guaranteed the stock
and bonds. MI. Watkins president for the
first year. Then he declined reelection and
succeeded him.
The further examination of Mr.. Baer wes
postponed until next Wednesday at p.
The first witness OF the day Joseph ].
Jernyn, Of Jermyn & Co. Independent mine
operators OF Scranton 5Ir. JerInyn said he sold
his coal to the SusQuehanna Coal Company. He
admitted q contract with the company. but said
that IL had expired before 1901. He said he
preferred selling it to a coal company to mar
keting the product individually, because the
companies paid promptly. and there
danger OF making bad debts.
why do you sell to the New-York, Susque-
hanna and Western Coal Company?" asked Com
missioner Clements
Because We made u contract with them, and
we are quite satisfied" answered the witness
"we have dealt with the coal company more
than sixteen years We mine about half q
million tons year. and we could mine more Il
We could get the men 20 work the mine
HAS your product been restricted because Of
che lack Of transportation facilties?" asked Mr..
Browneu counsel for the Erie Railroad Com
pany.