The Indianapolis journal., 1904-05-25
BAER PRODUCES HIS COAL
CONTRACTS AT NEW YORK
President of Reading Company
Gives Evidence Before Interstate
Commerce Commission.


NEW YORK. May 24.-The Interstate
commerce Commission to-day renewed its
inquiry into the anthracite coal trade based
on the complaint Of W. r. Hearst against
the Philadelphia * Reading Railroad Com
pany and other coal carriers, which was
continued from last September. The first
witness called was President Baer, of the
Philadelphia & Reading On April the Su-
preme Court of the United States decided
that Hearst's attorney, Clarence J. Shearn.
had the right to demand answers to his
questions relating to the contracts between
the railroads and operators. by which con-
tracts, it is alleged, the coal trust will be
proved 10 exist in violation of the Sher-
man antitrust law
In its decision the Supreme Court di-
rected e. b. Thomas. president of the Le-
high Valley Company. and w. H. Trues-
dale, OF the Delaware * Lackawanna, TO
answer. questions regarding the fixing of
| coal rates 1T tidewater, transportation 10
tidewater and the manner of preparing
| price circulars. The decision also cOmpes
| the Temple Iron Company and other oper-
ating companies TO produce in open court
| their contracts with the carriers.
Mr. Baer produced the contracts be-
tween the Temple Iron Company and Simp-
| son & Watkins, of Scranton, dated Feb. q,
| 1879. and copies of other contracts, which
| were filed evidence. For the Temple
| Iron Company Mr.. Baer was of the
signers. The firm of Simpson Watkins
| transferred TO the Temple company all the
| firms collieries in the Lackawanna and
Wyoming valley regions.
Mr. Baer produced also the contracts
| the Guaranty Trust Company, of New
| York, as trustees. and the Lehigh Valley,
Central Railroad of New Jersey, Delaware.
Lackawanna & Western, Erie, New York,
SuSquehanna * Western and Philadelphia
| x Reading companies indicating the rail-
| road companies as guaranteers of the pay
| ment OF bonds, as the principal and in
| terest of the Temple Iron Company.
| Mr.. Hebbard officer of the Guaranty
| company, was directed by the commission
| (while Mr.. Baer on the stand) to pro-
| duce the individual contracts between the
| Guaranty company and the several rail-
roads parties to the Temple Iron Company
| contracts, obligating the railroad COM
| panleS individually 10 meet their agree
ments as security for payment of the Tenn
| pie Iron Company bonds, principal and
| interest.
| Mr.. Shearn offered in evidence an agree
ment between the Guaranty Trust Com
| pany and j. p. Morgan & Co., William q.
Roekefelled. II; Mex. Twombley and Drexel
| & Co, whereby the latter parties to the
| contract underworld the Temple Iron Com
| pany stock.
Prior to the Temple Iron Company
! agreement Simpson * Watkins, said Mr..
| Baer, operated the mines on lease. The
| mines owned, the witness thought.
| by the railroads that carried the coal The
| Temple Iron Company directly sells no coal,
/
| said. The coal is brought to tidewater
by the railroads connecting with the col
! lieries.
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 before that time.
| Meanwhile bituminous prices had de-
! creased and anthracite prices had TO be
| reduced to meet IL. Steam sizes OF coal
| had increased in cost TO the consumer, he
| smaller
centage of the anthracite output COM
pared with the prepared size output.
| Mr.. Walter former president of the. Le-
| high Valley, was called to the stand by
| Mr. Shearn. For tidewater coal, he said,
the railroad paid the coal company from
| 90 to 60 per cent. of tidewater prices. The
| coal company's production cost was on a
| basis of 90 per cent. to the miner and 40 per
cent. to the company, the witness said.
| 60 and 50 per cent.
| Mr.. Baer was recalled late in the after
noon. The Reading Railroad. Mr.. Baer
said pays approximately $4,000 a year
| for repairs and in other ways upon its
| collieries without increasing their value,
and the cost is about TO be increased to
| more than S1.0oo,000- He mentioned this in
| connection with other items, following a
| question by Mr.. Shearn purporting to show
| that the sI70244 published as the Reading
| coal profits for 1903 was incorrect. For
the year 1902 (the strike year. and 1908 end
| ing June 80, Mr.. Shearn endeayored TO show
there was no consistency in the Reading
| ating expenses were, respectively, 81, ,125, 10I
| and 2,73O.0O0 or else the reported earnings
| of S770,244 i'm 1903 incorrect. Mr.. Baer
went over the details of the report. and
| showed abnormal losses account OF
damages done to collieries by floods in 100;
and which more than explained the ap-
parent discrepancy TO which Mr.. Shearn
had referred.
ION a per cent. basis the Reading ought
to make S5.0o0.000 year said Mr.. Baer
"and until it does reach that figure 1 will
not agree that the price of coal is toe
| high"
He said. in answer to Commissioner
Prouty, 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
purposey tied up coal traffic in winter oi
failed to furnish cars TO collieries had nc
foundation in fact, said Mr.. Baer. There
was freight congestion last winter to
degree not known in many years and was
due to physical conditions. He continued
1.-The Lord, though ii may shock you
Mr.. Shearn, was responsible for that II
was of the things over which We hac
no control"