The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-30

much OF the coal mined along the rail-
roads he controlled was not purchased
by him.
Mr., Baer estimated that 100000
tons OF coal is carried annually by the
Reading system. J. P Morgan, he
said, was not one of the men inter-
ested in the Simpson & Watkins prof.
ect to esrGblish a big general sales de-
pot for anthracite coal. He declined
to disclose the names of those who
We're SO interested ~
Would Danish Commission Men.
Mr.. Baer said he promoted the plan
to purchase the Temple Iron company,
and that six railroads were interested.
He; suggested the. percentage of the
inherent companies md their directors
accepted it. The plan, he said, was
not so broad as to 4nake the Temple
Iron company the sales agent of the
six companies in New York, but was
intended to get rid zef the commission
men. His idea, Mr.. sBaer said, was not
to maintain a uniform price foars coal
at tidewater, but to get rid of the
commission of 19 cents a ton for sell
inc coal. He had reduced the expense
of selling.
But you have. not succeeded in re-
ducing the price of coal to the con-
sumner" said counsel
No." replied Mr.. sBaer, because you
and your friends have succeeded in
raising wages af4d getting up the cost
of necessities so that profits are less"
Asked if the Temple Iron company
raised fund of Sic, 000, 600 to buy
more collierieS, he said it was not for
the purpose Of buying more collieries
He was opposed to loading up with
more collieries.
Words Over Contracts.
He said. he could produce the con-
tracts between the Temple Iron com
pany and the railroads.. Counsel for
the roads objected and he declined to,
rs there anytaiag I'M these con-
tracts Mr.. Shearn asked, @tl1at would
degrade and incriminate- your
- decline to- answer that question
because it is insolent. There is moth
ing in any contract l have ever made
that makes me the criminal your eli
ent published me as being, and he
cannot come into court and insult me.
You are not gentleman or you would
not insult meHC' *
L ask the court to rebuke the wit
ness said MI. Shearn, turning to the
commission. .zg - r. t
Mr.. Baer. He refused to answer a
question whether the Temple Iron
company has paid the Philadelphia. &
Reading company 1919 cents a ton for
all coal shipped by it since April 10,
1889.
The capital stock of the Temple Iron
company, Mr.. Baer said, was deposit
ed With the Guarantee Trust company,
of. New York, under a voting agree
ment. and they issued certificates
which were held by three or four hun
dred different persons. The directors
of the Temple company control the
different collieries in the Temple sys-
tenn. At their meetings, he said, there
was never any discussion about the
price and output of coal.
L do say most ,emphatically," he
went on,- there has been no pool and
no combination to- regulate the price
or output of coal between the railroad
presidents since have been president
of the Reading system"
Result of n Annals Appeal.
NJ. Shear. read to the witness a part
of the testimony he gave the investi-
eating commission after the strike of
1900, when he explained that the s.
80 per cent agreement between the
railroads and local companies was the
result of Senator .Hanna's appeal that
a continuance of the strike meant dam
ger to the Mckinley Roosevelt presi-
true.
The price of coal sold by the Phila-
dephia e. Reading Coal company, he
said, was fixed after a general con-
sultation with the general coal agents
and sales agents. The other compa-
MES pursued a like course. He added:
L thought we were the strongest
people, and l fixed the price and COM
PEELED the other dealers to do the same.
IA No. -,
and l admit that perhaps 1 was arbi-
trary, but [ felt that it was necessary.
After the strike several of the com
panies complained they could get a
better price than l had fixed for the
Reading company's coal. They asked
me to raise the price, but l refused. and
they had to come down to our price"
He said that the price of coal had
been raised so cents a ton because the
cost of production had increased. The
Reading system was, not earning fair
dividends because of the low price
realized on its coal.
Asked why the men were locked out
of the mines, he said:
They refuse to work unless we give
Tor seven hours work the pay of ten
hours work, and We are not going to
do it,
Viii Put Up the Price.
But you have fixed the rate at $3.50
a TONI" sssJ
Yes, and on May L am going to
advance the price 10 cents to try to
work it up to S.. That will be a fair
price and give us a profit If 1 can
not get that price, I'll have to come
down. If the market will take it at
SIS the price will not be reduced"
Mr.. Baer said he believed he could
control the coal market He said he
has not consulted any of the other
coal company men, but he does not
fear if he asked So a ton that the other
companies will ask, less. That would
be foolish If they did, he said.
And yet you say. there is competi-
ton in the business?' Mr.. Shearn ask
ed.
"Of course there is; fair and square
competition Mr.. 'Baer replied. TT is
not necessary that competing mer-
chants should cut each others throats.'
DO the railroads actually compete
for business in the coal regions %
In the sense of building lines to
the collieries, they do compete. In
the sense of underselling each other,
they do not. I do not believe in try
ing to take business where the action
must entail loss on an existing COM
.pany without any certainty of profit
TO the newcomer. The world is big
enough for all of us to make a liv-
ing. If there is new business 1 sup
pose we all compete for it,"