The Saint Paul globe., 1904-10-25
Rai1r Dad News
USES PERSUASION
TO KEEP UP PRICES
Witness in Hearst Coal Case
Says He Argued With Rate
Cutters

NEW YORK. Oct. 24.-The hearing be-
fore the Interstate commerce committee
on the charges brought by w. r. Hearst.
alleging collusion on the part of the coal
carrying railroad companies in fixing and
maintaining the price at tideWater. was
resumed today in this city. The hearing
specific complaint is that the railroads in
volved have fixed excessive charges for
coal in restraint of trade and in defiance
of the Sherman antitrust law
The complainant, represented by his
counsel, Clarence A. Shearn. has sought
to produce such evidence before the COM
mittee as would compel the reduction OF
the price of coal at tidewater east and
west and secure the punishment of the
alleged copspiTators.
The railroad companies involved in
clude the Lehigl1 Valley, Pennsy ylyania,
Erie, Delaware & Hudson, New York,
Ontario & Western. Central Railroad of
New Jersey Reading & Delaware, and
Lackawanna & Western.
Retail Price Identical
r. H. NJ Claggett agent of the Phila-
delphia & Reading Coal and Iron company.
in Chicago the next witness called. pro-.
dueed memoranda of meetings attended by
the witness and the Chicago representa-
tives of other coal carrying companies at
a Chicago hotel
Objection to the introduction of the
memoranda was raised by counsel for the
defendants, but it was overruled.
The memoranda showed the names OF
thirteen dealers. In reply to question
by Commissioner PrOuty the witness Sa id
there were other wholesale coal dealers in
Chicago but he could not recall the names
of any of them. The witness said he
never agreed upon any price for coal He
had his instructions from his superior at
Philadelphia and did not have author
ity to make any change in prices. It
was undoubtedly true. he said. that the
LOO or 1,800 retail coal dealers in Chi
cago charged uniform prices. He believ-
ed the retail price always is 81 III excess
of the wholesale prices
Favor One Dealer
Mr.. Shearn then questioned the witness
in relation to a resolution which had been
passed at meeting of the wholesalers IN
Chicago, permitting certain dealer to
sell damag ged coal at a reduced price. The
witness was asked why it was necessary
for the wholesalers to pass resolutions
permitting retailer to sell under the
schedule price if there was no restraint or
agreement.
Mr. Claggett replied that he knew Moth
ing about the memoranda He did not
know where it came from or who sent
1t. He had found it in his desk and
brought it with his subpoena from Chi
cago.
It developed then that the minutes of
the meetings, all In typewritten FORM re-
ferred to those present by number and
not by name, except in occasional in
stances. e. J. Platt, of the Lehigh Val
ley, said the conference had no jurisdic-
Of prices.
Used Persuasion
what did you do when you found re-
tailers varying priceS?" was asked.
IT always tried to keep uniform price
among my own customers When they
cut prices I talked to them and showed
them where they were wrong.
Mr.. Shearn went over the memoranda OF
the meetings in Chicago and questioned
the witness as toseertain items. He ask
ed particularly what was meant by track
dealers.
These, Mr.. Platt said, were coal deal
ers with facilities for receiving coal by
the carload. and the company refused to
sell to dealers who did not have the fa-
cilities for receiving the coal The wit
ness said then that coal companies had
nothing to do with arranging these facili-
ties, but that it was matter for the rail-
roads entering Chicago.
The witness concluded by saying that
the conferences had no regular organiza-
ton no chairman and no secretary, and
that they were only gatherings to dis.
cuss trade conditions to compare notes on
the general situation.
The case wil-be continued tomorrow.