The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-25
WORDS OF WRATH
FROM BAER
Railroad President Examined
by the Interstate Com
merce Commission.

NEW YORK, April "a. - President
George F. Baer, of the Philadelphia &
Reading Railroad company, was pres
ent today when the interstate COM
merce commission resumed its hearing
on the complaint of William r. Hearst
against the anthracite carrying roads.
F. Joseph j. Jermyn, an Independent
mine operator of Scranton, testified
that he sold his coal to the Susdue-
mamma Coal company. He promised to
send copy of his contract to the COM
mission Prior TO 1898 his company
was paid 50 per cent of the Underwater
price of coal, but now received So per
cent. This price was less than s.. He
preferred selling the coal to a COM
pany rather than to market his coal
individually
President Baer. of the Reading COM
pany, Philadelphia Coal company. Cen
trail of New Jersey railroad and Tenn
pie Iron company, was next called. He
said he was president of so many COM
panies he could not remember the
names of them all. Some of the COM
panleS, whose stock is controlled by
the Reading, the holding company, he
said, mine coal. Some carry coal. some
deal in coal, and some mine and OPP
crate in iron.
The Philadelphia & Reading Coal
company and the Philadelphia & Read
ing Railroad company are operated by
voting trusts, the personnel of Z hiCh
IS different, except that J. p Morgan
is member of both. At times con-
tracts existed between him as presi-
dent OF the railroad and as president
of the coal company
Mr.. Baer said about So per cent Of
the mining properties of the anthra-
cite region is owned or controlled by
the Philadelphia & Reading Coal com
pany. About 81 per cent Of the coal
produced is owned by the Philadelphia
& Reading company
Mr. Shearn read to the witness tina
section of the Pennsylvania cOnstitu-
ton which debars companies incor-
porated as carriers from engaging I'M
the business Of mining or manufacture
ing, and asked if the operation of tina
Reading Coal q Iron company is not
in violation of that provision.
The Philadelphia Coal q Iron COM
pany exists under the statutes of Penn
sylvania,' replied Mr.. Baer 1T does
not evade any laws of the state nor
OF the United States. There is no ap-
plication of that provision of tha
Pennsylvania constitution to our char
ter. That question has been decided
by the various courts.
THE corporate franchises Were
granted prior to the adoption of tina
new constitution. and the courts have
decided that the charters are fnvio-
liable"
Mr.. 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 it5
charter TO deal in coal
Witness said that he wanted to head
or Simpson q Watkins proposed in
dependent railroad. 1t would have hurt
MS companies and the public because
the cost of carrying coal would have
been high. If like conditions arose
again, he would advise his stockhold-
ers to do again as they had done
Even if it be in violation of tina
law asked Mr.. Shearn.
L welcome you to proceed in any
| court of the United States" said Mr..
Baer rising and facing the lawyer, and
II you can show we have violated any
law we Will undo it. I'm tired of YOU
people who dream you represent the
people lying to make out that all bust
ness men are trying to evade the law"
Does your statement include the
president of the United States 2" inter-
rupted Mr.. Shearn.
L have no criticism to make OF the
Mr.. Baer.
Mr.. Baer said he could not recall de-
tails of the contracts with the coal
companies, and that if his counsel de-
clined to produce the contracts he
would abide by his decision. Further
examination of Mr.. Baer was postponed
| until Wednesday.
Fred F. Chambers, secretary, and
Orlando c. Post. auditor of the Della
| ware, Lackawanna & Western rail-
road, We're called. but on advice of the
company's counsel refused to produce
or discuss any contracts entered into
by their company and the coal mining
! companies.
E. D. Sturgis. a coal operator of
| Scranton, refused to produce similar
! contracts. Mr. Sturgis was one of the
promoters of the proposed independ-
! ent railroad to Underwater. He said the
! scheme was dropped when the rail-
roads offered the operators bettet
! terms.
Mr.. Sturgis denied that the coal op-
orators proffted by the big prices paid
| for coal during the strike. The COM
| mission adjourned till Wednesday.
HAMLINE MAN WINS.