The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-06-10
MR.. BAER WAS
A WITNESS
Answered Questions of the
Commerce Commission.
READING co. LOST MONEY
During Strike the Loss Was More than
a Million and Half in Freight
AIone-Cannot Reduce
Rate.
READING co. LOST MONEY
(By Associated Press. J

NEW YORK. June 9.--Henrlng In the
Investigation OF the complaint Of w. h
Hearst against the coal carrying rail-
roads was continued by the Interstate
Commerce Commission to-day. when
President Baer was recalled by the COM
mission and examined by Commissioner
Prouty. In reply to the first question
President Baer said the rate on coal
charged from the anthracite regions
tapped by the Reading system, about $50
miles to tldewater, is S1.55 a ton. Thirty
or forty years experience had shown, MIR.
Baer said. that the coal could not be car
ried for less.
Notwithstanding the enormous IN
crease OF traffic." he said, the cost OF
transportation has increased. Tho rates
have not increased, but the cost OF all
supplies. except steel rails has advanced
within The last few years. In wages
alone on the Reading system the increase
last year was $1,000. 900"
During the strike. Mr. Bacr said, the
Reading system lost more than s1.500,0o0
in freight alone on anthracite, and that
was In excess OF the s5l5, 900 increase in
the freights received from bitumlnous
coal.
In reply to a question President Baer
said the Reading Company owned all the
stock OF the Philadelphia Company and
Reading Company and the Reading Coal
and Iron Company.
'Well,l' asked Commissioner Prouty,
''llow 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
rying company cannot pay it's expenses.
Under the laws Of PENNSYLVANIA the three
companies are distinct. Each has Its
own expenses to meet and fixed charges
to defray."
but II the railroad earns less tho coal
company will make more7" queried the
commissioner.
IT you guarantee that reduction in
the carrying ratio will not decrease the
price Of coal and so ruin the coal com.
pany, as we'll as the railroad, your con-
tcntion may be correct" Mr.. Baer re-
piled 1but think you are wrong .,
Mr.. Baer said some OF his officials
thought the company would be Justified
In charging any price they could get
for their coal. but he believed It was not
to the company's Interest to charge an
Unfair price. The Reading had never
yet made any money, but II they could
maintain the bottom price at $3.50 q ton
for the price basis sizes. they will be
able to pay per cent. on their invest
ments. He doubted whether they could
increase the price another 80 cents n ton.
as there are competitive conditions TO be
met.
r.epshearn. counsel for complainant,
asked tho witness II he wished ITO say
anything of the statement Of Judge
Campbell. counsel for the Reading Com
pany. that the company could make the
Price So or $40. Mr.. Baer said he did
not agree with tho Judge on that point,
Mr.. Shearn wanted to know why the
rates on anthracite on the Reading are
higher for $50 mile haul than tho Penn.
sylvanin charges for a 800 mile haul.
Mr.. Baer said he doubted II the figures
were correct. Mr.. Baer declared that
the Reading Coal and Iron Company
pays the same freight rates to the Read
ing Railroad that all other shippers pay.
Joseph 8. Harris, who was president
OF the Reading system before Mr. Baer.,
was called by Mr.. Shearn. He said he
remembered meeting OF the presidents
OF the coal-carrylng roads. when an
agreement was reached as to n division
of the tonnage of the anthracite region.
There was no combination" Mr.. IIar-,
ris said. I'VE came to an agreement
that If we fought for tonnage we got no
moro than If we just took what was
coming to us, and SO all decided to stop