The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-05-25
Replies to QuestionsThat
Supreme Court De-
cided He Must.
NO AGREEMENT EXISTS
Witness Declares Law Is Not
Violated, Although Price
Lists All Agree.

NEW YORK. May 25.-The Interstate
Commerce Commission, investigating
the anthracite coal rates. continued the
hearing in the Federal Building today.
At the adjournment yesterday it was
announced that William II. TruesdaIe.
president of the Delaware and Lack
awanna Railroad. would be called to the
stand today to answer the questions put
to him at the hearing a year ago.
which he refused 10 answer at the time
and which the Supreme Court decided
he must answer.
These questions required the witness
to answer what had happened between
May and April 30. 1903. to make "a
the price Of coal
Penalty Agreement.
f. C. Hebbard, secretary OF the Guar
antee Trust Company. was the first wit
ness called by Mr.. shearn and he pro-
duced the records of the Temple Iron
Company. with the Guarantee Trust
Company. providing for penalties to be
paid by the six railroads entering into
the combination. These contracts en-
powered the trust company to collect
from any OF the companies the penalty
Mr.. Hebbard also produced the origf-
nal agreement between J. P. Morgan
and others with the Guarantee Trust
Company. known as the syndicate
agreement"
Mr.. Truesdale was then called 70 the
stand.
Mr. shearn began by saying:
we will ask you the question asked
you last year: DO you know who fixes
the price Of anthracite coal carried by
your roads ?
Truesdale Makes Price.
well. suppose that do, after the
action Of the board Of directors"
Now. 1 ask you how do you account
for the fact that the price circulars are
Uniform II there is no agreement"
Mr.. Truesdale said the circulars were
issued each year prior to April 1. He
said a meeting Of the coal carrying
companies was held every spring, and
the prices OF coal were agreed upon
prior to the issuance Of the circular
These prices were based on the prices
of coal at tidewater
Mr.. Shearn called the attention of the
witness TO the circulars issued this year.
fixing the price Of coal at tidewater for
the year. This circular was dated MAY
Mr.. Truesdale admitted that the
schedule on which this circular was
based was agred TO at a meeting of
the roads on April l.
Not by Agreement.
How do you account for the fact hat
the prices for coal named in circulars
Of the Reading and other companies are
lhe same and are issued practically at
the same time?'
Il can only say that there Is no agree-
ntnt. That is the best answer I can
give
Mr.. Truesdale said there was each
wear a conference between the COM
panies. and the price which each road
would sell coal for was stated by the
representatives Of each road.
did you not confer with Mr. Baer.
of the Reading system. and Mr. Thorn
as. Of the Lehigh Valley. as 10 the
price of coal at tidewater?'
mo. sir
Because you knew it to be against
the law?"
Law Not Broken.
Il know it is against the law to agree
to a joint price"
That is why you arrange at these
each of these roads fix for coal at tide
water?"
we DO not fix it by conference or in
any other way"
Mr.. Truesdale said there was nothing
binding on any of the companies. Ii
was a matter OF honor
Mr.. Shcarn then questioned Mr. Trues.
| dale as to the reports fled by the I'ela-
ware. Lackawanna and Western RaH-
road, saying:
1T would not be fair to compare your
profits of 1903 with 1902 when there wa:
strike in the mines"
Mr.. Truesdale shook his head In the
! negative.
Strike Blessing.
But i see by your reports for 1901 o
said Mr. Shearn. that in addition tC
paying your regular per cent 'lividcat
your company had a surplus of 81. .196, coo
while in 1908 in addition TO your pei
cent dividend the company had a sur.
plus OF A.23S. 900.
That would show. would IT not, thai
the strike in 1902 was 4 great blessing tc
you?"
Mr.. Truesdale replied;
1T undoubtedly had gre5: influence IN
causing the price of coal to be main
tained A"
Mr. Shearn then read from the reports
OF the Delaware, Lackawanna and West
crn. showing that the cost OF mining
handling. and delivering coal had In
creased 2S cents ton over 1901. He
asked II that increase in cost OF pro-
duction did not figure In the advanc7
OF anthracite coal Mr.. Truesdale said
that the question of by-produets should
figure I'm the increase of anthracite.
To Commissioner Prouty. Mr.. Trues-
dale said that the Delaware, I.acka-
wanna and Western owned its own
mines