The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-02-07
Attorney Shearn Lays
Down His Plan OF
Attack.
ROADS DISREGARD LAW
Trust Arraigned as Con-
spiracy to Throttle
Competition.

Argument before the Interstate Com
nerce Commission was begun this morn
ing In the anthracite coal roads case
Counsel representing the accused coal
and transportat ton companies, and Will
liam r. Hearst. the appellant, were pre-
pared for the three or four days which
viii be consumed in presenting to the
commission the various aspects of this
many sided controversy.
Clarence J Shearn, MIR. HearStS coup-
sci. was the first to take the floor. There
were about two dozen lawyers on hand
TO hear his exposition Of the evidence
adduced in the hearings which the COM
mission began holding more than q year
ago.
The Paramount Issues.
Three paramount propositions were
laid down by Mr.. Shearn as the issues
which make the eomp1ainants' case.
They were as follows:
'.First-That six of the respondent
companies, the Lehigh Valley, the Della
ware. Lackawanna and Western, Cen
trail Railroad of New Jersey, New York.
Susauehanna and Western, Erie, and
the Philadelphia and Reading Railway
Company are parties TO an Illegal pool
ing contract or arrangement, whereby
interstate freight traffic. and conse-
quently the earnings thereof, are divid-
ed among them in agreed proportions In
violation OF Section OF the act 10 reg
ulate commerce.
.Second-That these six companies,
together with the New York, Ontario
and Western Railway Company and
the Pennsylvania Railroad Company,
by means of a device embodied IN the
operation of certain contracts in effect
fixing the transportation rate on an
fhraeite coal from the mines to tide
water and other interstate points.
claimed TO be, and commonly is. re-
ferred to in this case as coal purchase
contracts departed from the published
tariff charges and unJustly and uTfaw-
fully Disseminated against non-oo91-
tract shippers Of coal.
The Third Count.
s"Third-That the published tariff
rates of these eight companies from
the anthracite coal fields to tidewateI
points, Baltimore Washington. and
New England points, are unreasonably
high inherently, and do not bear fan
and reasonable relation to the ante
cedent cost of the traffic delivered foI
transportation, or in other words to the
commercial value Of the freight.
Before taking up the testimony II
detail supporting the three mair
charges, Mr.. Shearn discussed in gen
eral way the coal field, with its annua
output of 60,00e.000 tons. with value
ceeds in value all non-metalltc products
of the country, except bituninous coal
-
within an average distance OF III
miles, and is of tremendous wealth. IN
and Philadelphia. and hundreds OF
smaller cities and towns
Importance of Traffic.
He declared that in view Of the ines
timable Importance of the fuel to the
market depending on it the law shoulC
be scrupulously observed IN all branches
of the industry not only in letter but IL
snirit, and there should be rigorou!
abstention from ''all secret machlna
tions calculated TO substitute artifcia
conditions for natural conditions, anf
above all calculated to transform thu
vast quasi-public business into monop
oily with any OF the grinding and op
pressive features that are the inevita BIZ
accomplishments OF monopoly.
After discussing the power of tn
commission 10 correct such evils as MAJ
have grown up In the anthracite trade
Mr. sshearn undertook a lengthy treat
gnent OF normal competitive condition!
which should exist among the railroads
if they obey the law. He said all th'
railroads nave practically the sam'
facilities for handling coal with prac
tiealIy the same mileage from anthra
cite region to tidewater. From this nor
NAL condition. he said. they sought [,
transform the rate from a level calculat
eG to catch much business as possible
Tor each road at a low rate of .1rofit Il
a weapon of strength and a source o
untold power
Own Source of Supply.
This problem they solved by raiIroa,
ownership Of the source of supply ant
railroad production and control over tn
commodity. for the transportation O
which they must otherwise compete
The legal obstacle in the way of thi
pian a constitutional prohibition il
Pennsylvania preventing carrier com
panies from engaging in mining, wa
slrnounted by the Incorporation Of sep
arate companies for the operation OF tn
mines, the stock OF which was owne
OF law" said the speaker, this devic
of q separate corporate entity, thes
respondent railroads have acquired con
troll OF over Sc per cent of all the un
mined anthracite coal in the State o
Pennsylvania, and own outright Vi pc
cent OF IT.
brought forward the cases of the va
Fious contributary coal companies an
coal and iron companies. the stocks Q
which are owned by the coal caFryln
has for its president the president OF tn
railroad and identical controlling direc
tors or employees Of the latter company
lie quoted from the testimony OF Presl
dent George F. Baer. Of the Philadel
Phia and Reading Coal and Iron Com
pany and the Philadelphia and Readin
slip of the former by the latter, an
said this was a typical instance.
Among the lawyef3 present during NJ
Shearn's argument this morning WeT
Judge j. ID. Campbell. Philadelphia an
Reading: Robert W. DeFoFest, Centrt
Railway Of New Jersey; George
Browneli. and Adeibert Moot, Erie
Walter w. Rose, Delaware, LackawaT
and Hudson; John T. Kerr. New Yorl
Ontario and Western, and Francis
Gowen. Lehigh Valley