Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-24
MR.. BAER IS DEFIANT
Witness Before Interstate
Commerce Commission.
WANTS LAW TESTED
CLAIMS He ACTS WITHIN HIS
RIGHTS.
In Spite of Statute Prohibiting Same
Corporation Engaging in Two
Kinds of Business.

NEW YORK, April 24.-President George
F. Baer of the Philadelphia and Reading
railroad was present today when the inter-
state commerce commission resumed its
hearing on the complaint of VIM r. Hearst
against the anthracite coal-carrying rail-
roads.
Joseph ]. Jermyn, an Independent mine
operator of Scranton, testified that he sold
his coal to the Susquehanna Coal Company.
He promised to send a copy of his contract
to the commission. Prior to 1893 his COM
pany was paid So per cent of the tidewater
price of coal. but now receives 65 per cent.
The price was less than IS. He preferred
selling to a coal company rather than to
n arket his coal individually.
The witness said his companys product
had not been restricted by lack of trans
portation facilities, in fact, they had not
been able to fill the cars waiting for coal.
The only thing that hindered their produc.
ton of coal was the refusal of the men and
boys to work.
President Baer Next Witness.
President Baer of the Reading Company
Philadelphia Coal Company, Central Rail-
road of New Jersey and Temple Iron Com.
pany, was next called. He said he was
president Of SO many companies he could
not remember the names of them all. The
annual report of the Reading Company
Mr.. Baer said, will show the properties con-
trolled by that holding company. Some OF
the companies whose stock is SO controll-
ed, he said, mine coal. Some carry coal
Some deal in coal and some mine and oper-
ate in IRON He could not give off-hand the
capital stock of the companies
The Philadelphia and Reading Coal Com
pany and the Philadelphia and Reading
Railroad Company, he said, are operated by
ferent. except that ]. Pierpont Morgan is a
member of both. At times contracts exist
ed between him as president of the railroad
and as president of the coal company.
Mr.. Baer said about S per cent of the min
ing properties of the anthracite region is
owned or controlled by the Philadelphia
and Reading Coal Company. About Il per
cent of the coal produced is owned by the
Philadelphia and Reading Company.
The Law in the Case.
Mr.. Shearn read to the witness the section
of the Pennsylvania constitution which de-
bars companies incorporated as carriers
from engaging in the business Of mining OF
manufacturing, and asked If the operation
Of the Reading Coal and Iron Company is
not in violation of that provision
THE Philadelphia Coal and Iron Com
pany exists under the statutes Of the state
of Pennsylvania" replied Mr.. Baer. 1T
UocS llol eFdue any laws Oh the STATE nor OF
the United States I shall be glad to have
the question tested in any form you may
select.
There Is no application of that provision
of the Pennsylvania constitution to our
charter. That question has been decided
In various courts. The corporate fran
chises were granted prior to the adoption
of the new constitution, and the courts
have decided that those charters are in
violable'
Mr. Baer added that some of his contracts
with the coal operators were purchasing
and some transportation. The coal was
purchased by railroad company which
had authority in it's charter to deal in
coal.