New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-25
SHOWS COAL TRUST PACT.
Baer Says the Lord Vas Response
BILE for Freight Tie-Up.
RAILROAD LENDS TO COAL co

hAI1llOab IIANOo ~ OOA1 W.
The Interstate Commerce Commission yesterday
took up again the inquiry into the anthracite coal
rate. George F. Baer. president of the PhiIa-
dephia and Reading Railroad. was asked to pro-
duce the contracts between the Temple Iron Com
pany and Simpson & Watkins. Of Scranton, dated
February O. 1899. This the witness did. together
with copies of the contracts. which filed as
evidence. He produced also the contracts between
the Temple Iron Company and the Guaranty Trusu
Company. OF New-York, as trustees and the Le-
high Valley, New-Jersey Central Lackawanua
Erie Susquehanna and Western and philadelphia.
and Reading companies These showed that the rail-
road companies guaranteed payment Of the Temple
Iron COmpanys bonds in proportion to their shares
OF coal freight.
Mr.. Baer said the cost of mining anthracite coal
had been higher since the Strike Commission de-
cision than before that time. Meanwhile bitumih-
GUS prices had decreased. he said. and anthracite
prices had to be reduced to meet it, Steam sizes
OF coal had increased in cost 20 the consumer. he
said, but steam sizes the smaller percentage OF
the anthracite output compared with the pre-
pared size output
Mr. Baer said he reason why the guar
anteeing company ever should be called upon for
funds. except. possibly. at times Of strike
foreseen great disaster. In the event OF Ordinary
losses the Temple Iron Company should be able
TO for itself unassisted. The stock had sold
at about par
The Reading company. he said pays approx
mately $500 year for repairs TO its conierIes
HlJHOuL increasing IneT VdlOet anu the cost IS
about to be increased to more than 100000. He
went over the details OF report showed alb
normal losses on account Of damages done TO col
Heries by floods early in 1898, which. he said,
than explained the apparent discrepancy in the
reported earnings
ION a A per cent basis the Reading ought 70
make 100000 year he said. "and until 1t does
reach that figure will not agree that the price OF
coal is too high
The allegation that the carriers purposeIy tied
up coal traffic in winter failed to furnish cars
TO collieries had no foundation in fact. Mr.. Baer
said. There freight congestion last winter
TO degree not known In many years. and it
due to physical conditions.
The Lord. though it may shock you.f' he said
was responsible for that. 1t one of tho
things over which had no control"
Alfred Walter. former president Of the Lehigh
Valley said the railroad company paid the coal
company from 60 to So per of tidewater prices
The coal cOmpany's production cost formerly
a basis Of 80 per cent TO the miner and 70 per
the company. and later, in 1901. the proper
ton changed to 90 and 80 per cent. Asked IL
II that II the published rates We're paid
the Lehigh Valley Coal Company would have lost
money Mr.. Walter answered aflrmativey and
said the coal company borrowed from the railroad
company. Its borrowings. he said. not based
primarily on freight losses. but contingent on
the coal company treasury
To-day W. II. Truesdale. president OF the Lacka-
wanna Railroad, will be called