The Providence news. (Providence [R.I.]) 1891-1906, 1903-06-10
BAER TALKS ON
COAL RATES
TestfIes at Hearing Before New
York Commission.
SMALL CHANCE FOR PROFITS
Says That Reading Company Has MOI Made
Money In the Coal
Business.
SMALL CHANCE FOR PROFITS

New York. June 1O.-George F. Baer.
president of the Reading company. was
put on the stand in room 20 in the Fed
eral building yesterday to testify before
the interstate commerce commission In
the coal road hearing now going on.
Mr.. Baer was subpoenaed by the COM
mission 20 tell more fully about the rates
for carrying anthracite and bituminous
coal Before he took the stand he said:
II thought / told them all knew long
ago
Commissioner Prouty said. immediate
" after Mr. Baer took the stand:
What are your rates for carrying
anthracite from Port Reading to New
York harbor?"
Mr.. Baer replied:
The rate Is $l.65. aud the distance
is $50 miles,
why do you call that reasonable
rate?'
Because from an experience OF from
30 TO 40 years I consider the rate less
than customary. and because of the fact
that the company has been unable TO
make money"
rs II a general rule that as trafic
Increases rates decrease?"
II don't think this is so in our COM
pany. Our company transports an enor-
nous amount OF trafic. The passenger
trains delay the freight trains. and as
the road Is a short one there Is much
congestion. We move 260 passenger trains.
Trains get out OF the Reading terminal
every ten minutes. and we are compelled
to put coal on the sidings TO make way
for the passenger trains. Comparing the
rates OF years ago. although the volume
Of business has become much greater, the
cost Of transportation for last year in
A1A
Of equipment has been to per cent,
and in some cases % per cent. The
net earnings have not increased on ac-
count OF the labor troubles"
COMPETITION THE CAUSE.
Answering Commissioner Prouty's fur
ther questions, Mr.. Baer said:
THE commodity that we can trans
port more cheaply than anthracite Is BIZ
luminous coal"
why Is the charge for transporta
ton OF merchandise less than coal?''
I'VE compete with the western roads
In that trafic. The Reading was built
for the transportation Of coal. II Is an
extensive business. our collieries are ex-
tensive, some OF the grades are $50 feet
to the mile
The lines built 10 the collieries can
Only be used for this purpose. and when
use whatever
Mr. Baer read some figures from an
annual report OF the reading company,
from Mr.. Shearn. Commission
er Prouty compared the report furnished
TO the commission with Mr.. Baer's read
ing from a report furnished to the stock
holders.
Some differences were noted and Mr..
Baer said that rents on property might
account for them. He then went on to
explain the nature OF certain permanent
do you capitalize for improvements?'
asked Commissioner Prouty.
NO" said Mr. Baer. I'VE could not
do that for everything improved upon.
Every railroad in this country that has
tried that has come to grief sooner or
Congress has provided. has it, not.
that railroads shall return TO the gov
ernment a true report OF the railroads
business so Il shall know where the
money is spent?'
II don't think we are required to keep
our books as you direct. ! can't explain
conduct each branch l would make a
fool OF myself. We always state in our
reports just what we make. and anyone
IL at liberty to fully Investigate" ,
Suppose the rate on coal should be
reduced 25 cents a ton. what effect would
that have op the price OF coal?" asked
Prouty.
ATTACK ON INDUSTRIES.
..T can't say. The price would be reg
ulated by the law OF supply and demand
II this attack attack sha, Is made ,S on industries
perity Is successful don't know what
the price will be-" said Mr. Baer. rising
from the chair.
Several witnesses have testified that I
the price might have been increased to 80 .
q ton. Do you think so?'
''Yes, / do"
''Do you think an Increase OF 81 a ton
In New York would decrease the bust
ness?"
Yes" ,
Then it is to your interest to keep
II don't think any great corporation
would. be justified in doing that. IL ,
thould take into consideration the pub |
lic. In a matter OF so vital Importance
the coal companies should not receive
extraordinary profits. They arc entitled
Then in your opinion. Il Is your duty
to put such a price on coal as to justify
yes. I am trying to fix the standard ,
80 we VIII get a fair profit on our com
petltive business"
What Is a fair price so as to get
IT think the price we are now receiv-
Ing is a fair price. N the demand and
commercial conditions keep normal hope
But J cannot foretell what our earnings r
will be-"
III IL should turn out that $3.50 ton
u not enough. do you think YOU could
advance the price 50 cents toni"
y can't say"
What. Is the price OF coal in New
York today"
-Four dollars and seventy cents ton. =
PROFIT s. A TON.
Now. n Il cost $40 20 mine the coat
and 81 for transport the pront would J
therefore be 8 for the Reading CON-
pany."
II suppose you are right In your de- :
duction. but don't accept any such de- !
duction. You must take into considera.
tion the entire companys expense ana
royalties. You are gIezsing when YOU
single out one ton OF coal You must con-
slider ALL"
Judge Campbell objected 10 this lire OF
examination by Commissioner Proutv on
the ground that interest paid on bebts
had not been brought into consideration
IN the questioning
1ir Baer said that mis- interests would
'uffer by delay. but Mr.. Shearn said he