Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-05-25
COAL CARRIERS RATES
Explained to Interstate Commission by
Pres. Basr Of the Reading.

New York. May N.-The Interstate com
merce commission, today, renewed it's in
duiry into the anthraeife coal trade based
| the Philadelphia q Reading Railroad and
other coal carriers, which was continued
] from last September.
| United States decided that Mr. Hearst $
attorney. Clarence J. Hearn had the right
| to demand answers to his questions reiat-
ing to the contracts between the rail-
| roads and operators by which contracts
| it is alleged the coal trust will be estab-
Iished as fact and will be proved to ex-
/ ist in violation of the Sherman antitrust
| law.
In its decision the supreme court di-
Il Valley s co ana r. r. % sh
of the Delaware IL Lackawanna, to an
swer questions regarding the fixing OF
coal rates at tide water ana III, me matter
also cOmpels the Temple Iron Co. and
other operating companies to produce in
! open court their contracts with the car
! The first witness called when the com
mission met. today, was President Baer.
Mr.. Baer was asked to produce the TIE con;
! Simpson Il Watkins of Scranton dated
! Feb. q, 1899 This the witness did. to-
getl,er with copies of other contracts
/ which were filed as evidence.
| The Temple Iron Co. directly sold no
| coal, except locally at the mines the wit
| ness said. The coal is brought to tide
| the colieries.
Mr. Baer could not recall the present
cost per ton of mining coal. He said the
| cost varied from month TO month and
year to year, but had been higher since
the strike commission decision than be-
| fore that time. Meanwhile bituminous
, cite prices had to be reduced to meet it.
Steam sizes of coal and increased in cost
to the consumer. he said, but steam sizes
| are the smaller percentage of the an
~ nj rad a
pared size output.
Alfred Walter formerly president of the
| I.ehigh Valley, who is about to sail for
Europe, was then examined. Mr.. Walter
said he was president of the Lehigh Val
| ley Coal Co. while he was president of
the railroad company. For tide water
| from " to 10 per cent. of tide water
| prices. The coal companies production
| cost was on basis of TO per cent. to the
miner and 30 per cent to the company.
changed to % and b per cent.
Mr.. Shearn sought to show by the wit
ness that the Lehigh Valley Railroad re
bated to the Lchigh Valley Coal Co and
| practically greatly reduced the rate, but
MIR. Walters memory was at fault to
details. He made the general assertion
that the coal company paid the published
| MIR. Shearn asked if it was not true
Iehish Valley Coal CO. would have lost
money. Mr.. Walter answered ailirma
! rowcd from the railroad company.
| When Mr.. Walter had testified regard
/ ing the total output and revenue OF the
| l:ehigh Valley Coal Co. at times during
ed to Mr. Shearn that it was evident the
| coal company's total business need not
, necessarily represent net loss.
MIR. Walter said the Lehigh Valley Co
and. he presumed, the other carriers aS
| we'll entered into the Temple Iron Co.
agreement as protection against the pro-
was being planned by the. independent
operators. The Lehigh Valley, he said,
was threatened with a loss of tonnage
and it meant to hold on to at least the
tonnage it had.
Mr.. Baer was recalled Ia tie in the after
noon. He was questioned by members
81 the commission and said the Temple
iron Co was a very good business prop-
ostion." He saw no reason why the guar
antor companies should override eaiied
upon for funds. except, possibly, atftfrnes
The Reading Co, Mr. Bacr said, pays
approximately $4,000 year for repairs
out increasing their value. and the cost
Is about to be increased to more than
s., 900 eco.
Mr.. Baer went over the details of the
published report and showed abnormal
losses on account of damages done to
ccllicrics by floods. early in 1865. and
which more than explained the apparent
discrepancy to which Mr.. Shearn had re-
fcrrcd
ON a per cent. basis the Reading
ought to make $5GN.10 year" said Mr.
Bacr; and until il does reach that figure
! will not agree that the price of coal is
too high"
He said in answer to Commissioner
l'routy that reduction in freight tariff
would not necessarily mean lower prices
for coal To the consumer if the operators
thought they should get more for their
product. The allegation that the carriers
purposcly tied up coal traffic in winter
or failed to furnish cars to collierics has
no foundation in fact. said Mrs. Bacr
There was freight congestion last winter
and was due to physical conditions He
continued: The Lord, thought it may
shock you, Mr.. Shcarn, was rcsponSIhlc
which we have no control