The free lance. (Fredericksburg, Va.) 1885-1926, 1903-06-13
BAER on THU STAND
Explains to Interstate Commission
Freight Rates on Goal.
BECAME NsT7LED sY QUESTIONS

presiden, Of Reading Warmly Resents
At.snnt TO Draw from Him State
ment Of Profit Fer Ton For Trans
portation.
Now York. June i0.-George +. Baer.
nresri,nt OF the Philadelphia and
Hssdiar Railroad Company. was re-
cal'ed 10 the ,and when the interstate
commerce commission resumed its in
o,i,, irfo the charges that the coal
ro-~.fne railroads are parties To an
rrl,N.d combine 90 restrict compete
ticn anil keep mp prices in the coal
business.
commits Toner Prouty asked Mr..
pa.r several questions regarding the
method %. fixing the rate charged for
transror.iag coal 10 tidewater- Mr..
Razor EXPLAINED that his company re
c.ivo1 Sf5- a ton for an average haul
oflS- miles. ami at this rate, he said,
Tho company has not been able to
,,ots money He declared that the
money invested in his road did not
earn ss far MS the transportation OF
coal was concerned. the average rate
of interest
Drrire the strike Nr. Baer said the
peal.rs system lost more than $1,000
la0 I'm fr.Isht alone in anthracite. and
that was ~ excess of the $4,000 In
crease IN the lrc.ghts received from
hi,ruirers coal For nearly half an
hour Nr Pnuty questioned the Wit
r-ss as to tae as,al report by the
Phiade.ul.a and Reading system and
its Leased limos Mr prouty wanted TO
know why gross .iem Of nearly 81
100000 was shown in the report as
"imuro,eueuts' and asked for de-
tails
81 lo rof uuderstanl' Mr. Baer re-
ulad "taat your commission has
Jurisdiction over the way the Reading
shall keep its books. or to what ac-
count IL shall charge the moneys eX-
pended for Improvements"
"The commission does not claim
such jurisdiction" Mr. Prouty replied
lint las the right under the congress
sional provision 10 know what the rail
road company does with the money it
earns SD as 70 be able 10 determine if
its CHARGES are fair and reasonable
Commits louer Prouty tried to secure
from the witness a statement as 70
the average profit per ton that accrues
10 the Readins Company for the trans
nortaton of coal. but Mr. Baer refused
10 answer. You have no right 10 ask
anv such question" he said, rising
from his seat You are trying 10 get
me 10 reply 10 misleading statements.
Let me tell yor that every ton Of coal
mined in the Reading Company's
mines costs s.. and we are compelled
10 sell some ~ IL as low as 50 cents.
when Won try 20 show that II makes
no difference 20 the Reading Company
what il CHARGES for the transportation
Of coal you are in the wrong. The
Reading Company owns mines, of
course. and leases them. but the earn
inss Of the Reading Railroad and the
Reading Coal and Iron Company are
not combined. These companies are
separate corporations and operated as
such"
Asked by Nr. Shearn, counsel for
Mr.. Hearst. what the increased price
Of mining coal consequent on the
award Of the strike commission, Mr..
Baer said q cannot tell. II is certain
r. moro then 30 cents per ton. The
strike commission, by fixing the work
day az nine hours. has reduced the ca
pacity of our collieries more than a
million tons per year"
Suppose the rate for hauling coal
was reduced 70 % cents per ton, what
effect would it have ON the price OF
coal?' asked Mr. Prouty.
81 don't know" was the reply. ut
might reduce the market price Of coal.
and it might not I am no theorist II
the general attack that is being made
on all classes OF industry by certain
people continues. no one can tell what
the price OF coal or anything else will
be II is 10 our interests TO supply
coal TO the market at fair price be-
cause IL is a necessity No great cor
poration would be justified in charg
ing more for a necessity Of life than
will insure a fair return TO its stock
holders Wis is my personal view, al
though some people think an article
should be sold for all that it will bring.
Ny company only aims to secure a
fair return on IT'S investment. SO far
We have not been able to do this. II
the present prices are maintained and
we received from $3.50 TO s. per ton,
think VIC viii be able to pay about 4
per cent. on their Investment to our
stockholders"