Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-05-24
BAER COMES TO TIME
PRODUCES CONTRACTS INVOLVED
IN COAL TRUST CASES.
Interstate Commerce Commission Re-
news Inquiry in w. r. Hearst's suit
Against Railroads.

NEW YORK, May 24-The interstate
commerce commission today renewed its
inquiry into the anthracite coal trade based
on the complaint of w. r. Hearst against
the Philadelphia and Reading Railroad
Company and other coal carriers, which
was continued from last September. The
first witness called was President Baer OF
the Philadelphia and Reading.
On April the Supreme Court of the
United States decided that Hearsts at
torney, Clarence ]. Shearn, had the right
to demand answers to his questions relat-
ing to the contracts between the railroads
and operators. by which contracts, it Is al
legged, the coal trust will be established as
a fact and will be proved to exist in viola
ton Of the Sherman antitrust law.
Baer Produces Contracts.
Mr. Baer was asked to produce the con-
tracts between the Temple Iron Company
and Simpson & Watkins of Scranton.
dated February %. This the witness
did. together with copies of other contracts.
The copies were filed as evidence. For the
Temple Iron Company. Mr.. Baer was one
of the signers. The firm or Simpson &
Watkins transferred to the Temple COM
pany all the firms collieries In the Lacka-
wanna and Wyoming valley regions.
Mr.. Baer produced also the contracts be-
tween the Temple Iron Company and the
Guaranty Trust Company of New York, as
trustees. and the Lehigh Valley. Central
Railroad of New Jersey, Delaware, Lacka-
wanna and Western. Erie New York, Sus-
quehanna and Western and Philadelphia
and Reading companies, indicating the rail-
road companies as guarantors OF the pay
ment of the bonds, principal and interest OF
the Temple Iron Company.
Mr.. Hebbard, an officer of the Guaranty
company, was directed by the commission
d. ~fa tn "a
duce the individual contracts between the
Guaranty company and the several rail-
roads parties to the Temple Iron Company
contracts, obligating the railroad companies
individually to meet their agreements as
security for payment of the Temple Iron
Company bonds, principal and interest.
Agreement Offered in Evidence.
Mr.. Shearn offered in evidence an agree
ment between the Guaranty Trust Company
and J. p Morgan & Co., William G. Rock
efeller. H. Nick. Twombly and Drexel &
Co.. whereby the latter parties to the con-
tract underworld the Temple Iron Com
pany stock.
Prior to the Temple Iron Company agree
ment Simpson & Watkins, said Mr.. Baer,
operated the mines on lease. The mines
were owned, the witness thought, by the
railroads that carried the coal.
The Temple Iron Company directly sells
no coal. except locally at the mines. the
witness said. The coal is brought to tide
water by the railroads connecting with the
collieries.
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 decreased,
he said and anthracite prices had to be re-
duced to meet it. Steam sizes of coal had
increased in cost to the consumer, he said,
but steam sizes are the smaller percentage
OF the anthracite output as compared with
the prepared size output