New-York tribune., 1903-05-01
AGREES WITH Mr.. BAER.
SHUT OUT COMPETITION.
Lehigh's President WantS TO Submit
Contracts. but Counsel Says No.


Although President Baer OF the Reading Com
rany continued she stand at yesterdays coai
hearing before the Interstate Commerce Comnlis-
sion hy far the most striking witness in more
features than was Eben B. Thomas presi-
cent Of the Lehigh Valley road. One of these was
the following statement made by him after deny
SIG that the division OF the carrying trade was
artificial and saying that If the railroads reached
into the territories tapped by each other it woud
hurt al the interests and do no one any gooo' III
reply TO the question by Clarence J. snearn'
Would not the price of coal and the carFSlhe
rates be reduced by such competition
u DO not believe in creating unnecessary ana
unreasonable competition ! do not believe snouo
he able to justify myself 10 those whose properly
direct if ! should originate any reckless compeu-
rion."
Anotber eestJre was his willingness to answer
questions and show contracts and the expression
Of regret that must obey the objections OF cou-
sci who told him disobey the instructions OF the
commission.
when Nr Paer first took the stand Mr.. shearn
asked;
You have the power TO restrict the output of an
shracite coal If you choose 10 DO soE
IF the Reading Coal and Iron Company oeslreo
90 forget its obligations to the public and to Its
stoczholders n could of course. shut down all It's
rnines and stop its trains from carrying the coal
from other mines
Have You such power" Commissioner ProutS
asked-
IF moro coal was mined" asked Commissioner
Clements could It be sold cheaper?
Not 10 make profit for the mines II the pro-
duction exceeds the demand the price must faii as
the coal is held in storage until remunerauNe
price IS reached The effect of the last strike mas
put Us back years and years 1t will take US long
time TO regain markets. We have lost 'he New
England markets. which have gone to Nova SEQ
tia and bituminous coal. Our market to-day Is
practically restricted TO the sea II Is almost ih
70 sell mt
1T is utterly impossible Mr. Baer said' 10 re-
siuce our rates without bankruptng our company
We have been able to pay only per cent on s-o'-
oaa 600 of stock out of s1400OoOO0 and last year we
Maid only Der cent The summit of our hopes is
TO paw per cent on the total, and In thirty years
effort We have not been able to reach that hgure
You told us, Mr.. Baer," Commissioner Frouty
said. that all you working for is falr plont
You want TO be the Judge OF what is q fair prontE
NO We ask only g fair rate, the nominal rate
Of interest on the capital invested with fair al
1owance for the depreciation Of the stock
What would you consider fair profit for your
company the Philadelphia and Reading Railroad!
Mr.. Prouty persisted.
Mr. Beer fenced with the question. and finally
esid it was impossible TO fix the value o. the
Reading holdings.
Would you be satisfied with per cent on the
snarket holdings OF your stock?"
.'ob no should not be satisfied with any such
Valuation as that It is worth much more than
che stock shows"
Should the people pay more for coal TO enable
YOU 10 collect interest on increase in valuation
of property that cost you nothing and with which
you have had nothing TO do?' Mr. Shearn asked.
Should John Jacob Astor be permitted TO charge
rent to-day for the property he 9p'alneo% NO Ipr
TeX5 Baa,,s 20 aneTar n9Ihlns some
The Philadelphia and Reading Coal and Iron
Company has made profit of seOeo since NoveIn-
ber lso0 after paying all expenses and a fair al
land Eaioe e 81 me ne ing raroad system charged
-T1s~
company is Indebted TO the railroad company.
OrlT u per cent is charged
NY policy in the face OF the present unrest
Mr.. Baer said lis to get several million @ tons o,
coal Of all sizes stored so that should any caIahty
threaten again We shan be PREPARED -on II ana IN me
bot a Ga tons OF coal at various Storage places
President Thomas Of the Leiigh is also an officer
oontrolled by the Erie Railroad, which practically
owns also al Oh OF the @ st9Gk OF me ems bssd Of the
New-York. Susquehanna and Western Rallr9ad
New-York and susquehanna Coal Company is also
controlled BY yl9c thg fr5f Of te anthraci regon
The witness said he was present at the confer
f GS a 3s9 1ea Sed np o On to divide he
mage according TO colliery production was sug-
And you were bound in honor to each to main
.IyeII don't Know replied the witness with
q laugh There is not much honor in the freight
The allotment for the Lehigh read, Mr.. Thomas
thought was about R per Gen ad Sd ntn on 5he re do
with the production or the restriction OF the pro-
be carried to MARKER asked Mr.. Prouty.
"Oh. no. It was made in answer to complaints
Of the industrial mine owners that the railroads
were discriminating in favor Of the mines they con-
troIled."
You carry those same ideas into your business
q salesman of coal?' asked Mr.. Shearn
Counsel objected, but the commission voted the
question pertinent
vised Mr.. Thomas not 20 reply. and, despite the
direction Of the commissioners, Mr.. Thomas abided
by his lawyers advice similar proceeding fol-
lowed Mr.. Shearn's question If the price of an
thracite at tidewater fixed by conference and
agreement among the presidents of the coal COM
panies.
Mr.. Thomas asserted. as had Mr.. Baer the legal
right Of his company to stie the opposition of the
Simpson & Watkins scheme for independent
coal of the individual operators
Nr. Thomas thought the Erie made an excellent
bargain in the purchase OF the Pennsylvania Coal
Company for SS2,0l0.ee9. The plan for inde-
pendent railroad from Lackawanna to Kingston
prepared by the Pennsylvania Coal Company was
sn invasion of the Erie road he said That pur-
chase protected traffic and made the Erie at
dividend paying property he added.
Mr. Thomas invited the commission, Mr.. Shearn
and ". r. Hearst visit the anthracite regions
at his expense 10 acquaint themselves with the
conditions prevailing there and with the difficulties
the coal roads have in collecting freight
What would be the effect Mr.. Prouty asked.
rif the freight rate coal reduced p"
My opinion is Mr.. Thomas replied that the
individual operator would raise the price of his
coal know that Is what the Lehigh Valley Coal
Company would DO"