New-York tribune., 1903-06-10
"SPOLIATION," SAYS BAER
HIS IDEA OF LOW. PRICES.
Thinks Pennsylvania Uoald Not At
Io5c 1t for Good of Country.

President FSaer of the Reading company Was
questioned for Two hours yesterday by the IN
.e,s.ate Commerce Commission at the con'iilud-
sion Of the hearing Of the complaint aediiie'
the coal roads. Commissioner ProuF PuC nv
Questions. and in answer one, IF the rairoao
earns less the coal company makes more MI
Baer's reply was:
..If Won guarantee that 4 reduction IN ule 't
-,.;rr rate will not decrease the price of coal
and so ruin the coal company as we" % -
-atlroad. ro-r contention may he correct "u'
.b,,, vor are wrong. Anyway i doubt if the
great state of Pennsylvania will allow her gTe't
,o-nors1ior7s and her coal fields 10 be spolateu
sor the good Of the rest of the United states. l
mini, il more likely that special inducements
will he made to manufacturers 10 come to PENN
sylyania and consume the coal o1 the 0'"'5
within the limits of the State"
A. Fsaer said the freight rate on coal from the
anthracite regions tapped by the Reading sHs-
fem about one hundred and eighty miles TO tlde-
water. was 81 "a a Ton. That price was proper
+ionstalv less than had been charged. and yet
the company had not been able to make any
money Notwithstanding the enormous increase
.. traffic the cost of transportation had in
r-aaead The rates had not increased. but the
.os+ of all supplies, except steel rails, had ad-
,anced within the last few years. In wages
elone on the Reading system the increase last
year was S1-2o0oco.
For nearly half an hour Mr. Prouty ouesaoleo
NJ Rsey as TO the fiscal report Of the Phlla-
delrhia and Reading system and its leased lines
mr Baer explained what appeared to be mac
cr,-acies by saying that the differences in his
testimony and in the official report were due 10
different methods of n1arshallng the figures
and that the totals would be found TO agree
we are doing what can TO keep our cap
,.euza.ton sovn" he said. I'VE are unable to
my dividends now and If increased our
Capitalization we would not be able TO pay the
interest on our funded debt
M- Proutv wanted to know why a gross item
Of nearly s., 100000 shown in the report as
Improvements" and asked for details
II do NOT understand" Mr.. Baer replied, that
vour commission has jurisdiction over the way
the Reading shall keep its books or to what
er,orn+ u shall charge the moneys expended Tor
improvements.
.eTbe commission does no. claim such jurisdic-
.ion :, Mr.. Prouty replied. "but the commission
has .re right under the Congressional provision
70 know what the railroad company does with
the money II earns so TO be able TO determine
If its charges are fair and reasonable.
.If attempted to act controller, freight
span+ end ticket seller of the great Reading
system +" Mr.. Baer retorted -I should be fool
am the president of the road. If the commits
sion had notified me that a detailed statement of
these expenditures was wanted L would have
had il made out.
Some of the questions and answers that fol-
lowed We're:
o.-Tbe Reading Company owns all the stock of
the PbiIadelphia and Reading Railroad Company?
At does; sal00Be 600 of stock.
o4AnG the Reading Coal and Iron Company?
o1Wel,. how does it make any difference what
,aTe the railroad company charges to the coal COM
pany for carrying the coal? All you reduce the
rate coal the carving company cannot pay M i:
three companies are distinct. Each has its owl
expenses to meet and fixed charges to defray- ,
price of coal fixed s. ton IL could just a!
I'm. il Is not to our interest charge unfail
price for an article of necessity, more than 4
some of my associates think we would be justified
il charging any price We can obtain Tor any any com
demand. do not agree with them feel that T'
labor CON naer2ial and competitive conditions mus
affect oar ability to do The Reading system
Isin The bottom price at 81 80 ton for the propose
sizes of anthracite think we shall be able
realize per cent on our investment Even that i
no certainty storms or strikes might interfer'
with all our calculations.
of YOU do not make more at that price vii
you be able TO tncrease the price another % cents
be met and do not think any one could fix al
arbitrary price Prices must depend upon com
-nercial conditions
j B. Kerr. counsel for the Ontario and West
ern, said the road was ready to submit to tn
commission, as soon as it could prepare it,
statement showing exactly what coal it ha
handled in the last ten years, and what hai
been realized for the coal. and how much III
road had received for the transportation
Counsel to-day are tc argue before Judge La
cor1he. in the United States Circuit Court, as Il
the admissfbility Of the coal purchase con
tracts