Evening journal., 1903-04-25
PRESIDENT BAER
ON THE STAND
Head Of the Reading Railroad
Denies His Company
Violated the Law
HAS TILT WITH NEW YORK LAWYERS

New York, Ap1l 25.-GeOfge r.
Baer, OF the Philadelphia and Reading
Railway company, was called TO the
witness stand in TIE investigation by
the Interstate Commerce commission
into the charges that the coal-carrying,
companies were violating the inter-
state commerce law. President Ba er
gave his answers clearly and withont
hesitation.
Mr.. Baer said about 63 per cent OF
the mining properties of the anthracite
region is owned or controlled by the
Philadelphia and Reading Coal com
pany. About q per cent of the ccal
produced is owned by the Philadelphia
and Reading company.
Mr.. Shearn, counsel for the COM
plainant, read to the witness the sec
tion of the Pennsylvania constitution
which debars companies incorporated
as carriers from engaging in the busi-
ness OF mining or manufacturing and
asked if the operation OF the Reading
Coal and Iron company is not in viola
tion of that provision.
"The Philadelphia Coal and Iron
company exists under the statutes of
the state of Pennsylvania" replied
Mr.. Baer. 1T does not evade any laws
of the state or of the United States.
shall be glad to have the question test
ed in any form you may select Tier e
is no application of that provision 'of
the Pennsylvania constitution to oar
charter. That question has been die
cided in various courts. The corporate
franchises were granted prior to the
adoption of The new constitution, and
courts have decided that those chitrters
are inviolable."
Asked as to the manner in whic the
control of the New Jersey Central rail-
road company by the Reading roads mad
been gained, Mr.. Baer replied: THE
Reading company secured contro'h y5e-
cause it was competitor and the
Reading road had to use its trac Ks to
reach New York"
Mr. Baer said that in 1898 he o wned
about oNo-ffth of the stock ofi the
Temple Iron company which then
owned no coal lands. He first conc lived
the idea of securing control of the
stock of the Temple Coal compan 3 for
the purchase of the collieries of limp
son & watkins He did this be cause
Mr.. Watkins had a scheme to or Banize
a big company in New York which
should control the output of these
mines. The other railroads weIe seen
and they guaranteed the in creased
stock of the Temple Iron company.
I'VE did not want to see another
railroad constructed into the coal re-
gions, and therefore we took steps to
prevent the construction of the road,
and there is nothing in the laws of the
United States or of the state Of Penn
sylvania to prevent our doing so"
But II that road had beer built" Z"
asked Mr.. Shearn. would it not have
been a competitor of yours?"
I'VE would have had to buy it," was
the reply.
Even If Il be in violation of the
law?" asked Mr.. Shearn.
Il welcome you to proceed in any
court of the United States" said Mr..
Baer, rising and facing the lawyer,
"and If you can show we have violated
any law, we will undo it, If we are
guilty, go before the proper tribunal
and prove it. I'm tired of you people
who dream you represent the people
lying to make out that all business
men are trying TO evade the law"
Does your statement include the
president of the United States?" inter-
rupted Mr.. Shearn.
Il have no criticism to make of the
president of the United States" said
Mr. Baer.
Mr. Baer said he could not recall
details of the contracts with the coal
companies. and that If his counsel de-
elined to produce the contracts he
would abide by his decision.
Further examination OF Mr.. Baer
was postpone until Wednesday next.