The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-10
'BAER AGAIN A WITNESS
PRESIDENT OF THE READING COM
PANY EXAMINED AT LENGTH.
Testimony I'm Regard to the Cost Of
Handling Coal and the Amount
Received by His Road.

NEW YORK, June 9.-Hearing in the In
vestigation of the complaint of w. r.
Hearst against the coal-carrying roads was
continued before the Interstate-commerce
Commission to-day, when President Baer
was recalled by the commission and exam
ined by Commissioner Prouty. In reply to
the first question President Baer said the
rates charged on coal from the anthracite
regions tapped by the Reading system,
about $50 miles to tidewater, is s155 a ton.
Thirty or forty years experience had
shown, Mr.. Baer said, that the coal could
not be carried for less. Notwithstanding
the enormous increase of traffic. he said,
1.-The cost of transportation has increased.
The rates have not increased, but the cost
of all supplies, except steel rails, has ad-
vanced within the last few years. In wages
alone, on the Reading system, the increase
last year was $1,000, 000."
During the strike, Mr.. Baer said, the
Reading lost more than 81 100000 in freight
alone on anthracite, and that was in excess
or the $4,000 increase In the freights re-
ceived from bituminous coal. For nearly an
hour Mr.. Prouty questioned witness as to
the fiscal report by the Philadelphia &
Reading system and it's leased lines.
Mr. Prouty wanted to know why q gross
item OF nearly 100000 was shown in the
report as Improvements" and asked for
details.
81 do not understand" Mr.. Baer replied,
that your commission has Jurisdiction over
the way the Reading shall keep its books,
or to what account 1T shall charge the mon
eys expended for improvements"
The commission does not claim such
jurisdiction. Mr.. Prouty replied. but has
the right under the congressional provis-
lon to know what the railroad company
does with the money 1t earns so to be
able TO determine II its charges are fair
and reasonable"
laI r. A.
sion wanted detailed statement of ex-
penditures he would have had it made out
In reply to questions President Baer said
Of the Philadelphia & Reading Railroad
Company and the Reading Coal and Iron
Company.
''how does it make any difference what
rate the railroad company charges to the
coal company for carrying the coal?"
III you reduce the rate on coal the car
Under the laws of Pennsylvania the three
companies are distinct. Each has it's own
expenses to meet and fixed charges to de-
fray"
But If tho railroad earns less the coal
company. will make more?" queried the
commissioner
IF you guarantee that reduction in the
carrying rate will not decrease the price
of coal and so ruin the coal company, as
well as the railroad, your contention may
be correct" Mr.. Baer replied. But
the great State Of Pennsylvania will allow
her corporations and coal Fields to be
spoliated for the rest of the United States
l think IL more likely that special induce
ments will be made for corporations to
come to the State and consume the coal
within the limit of the State"
Mr.. Baer said some of his associates in
the company would be justified in charging
any price they could get for their coal, but
he believed ii was not to the company's
interest TO charge an unfair price. The
Reading had never yet made any money,
but if they could maintain the bottom
price at $3.50 a ton for the price basis
sizes, they will be able to pay per cent.
on their investment. He doubted whether
they could increase the price another so
cents ton, there are competitive con-
ditons to be met. There was some. but
not a great deal of competition between
the carrying lines. Witness said it cost
81 ton to mine coal, and in the leased
mines 80 cents ton additional was paid
as royalty. The coal which sells at $40
at tidewater is domestic coal, not half the
coal mined. The coal which brings 65 cents
a ton costs just as much to mine.
Mr.. Baer declined to agree with the opin-
ion given yesterday by ex-President Oily
plant, of the Delaware e. Hudson, that re-
cent troubles have increased the cost of
production of coal 80 cents a ton. He be-
lieved those figures too conservative. In
his judgment the figure was nearer 40 cents.
Nobody had any other questions and Mr..
Baer was excused.