New-York tribune., 1906-06-06
GIFT TO n. Y. CENTRAL
BLOCK OF COAL STOCK.
Beech Creek Company's Present
$500 900, for Traffic Reasons"

commerce Commission to-day when il resumed
as investigation OF the alleged connection OF
ralroass with the soft coal and oil interests
commissioner Clements said the investigation
bas no1 reached the stage that demanded the
testimony Of Nr Cassatt. and he was unable
10 say whether his appearance would be
orired by the commission.
The New York Central. the Buffalo. Rochester
4 Pitisbure and the Baltimore & Ohio were
rD6er investigation to-day. the hearings being
conducted by Commissioners Clements and
Cockren The examination OF the New York
Central occupied ell the morning session and a
mari OF the afternoon session. II developed that
no employees or officials of the company held
stock in coal mining oil companies. Vice
President I Y. W. Rossiter testified. however.
that the Beech Greek Coal and Coke Company
had presented TO the New York Central FIVE
thousand shares Of stock par value sloo for
trafic reasons" Later. when the Beech Greek
company was merged into the Pennsylvania
Coal and Coke Company, this stock was sur
rendered. the railroad receiving Sl,50o,ooo worth
os stock in the latter company.
James Kerr. Of Clearfeld, a coal operator, was
asked concerning reported agreemtn regard
ing the placing Of sidings which had been made
by President Cassatt and ex-President Galloway
Of the New York Central Mr.. Kerr could
throw no light the subject
MR.. ROSSITER'S TESTIMONY.
Nj Rossiter. who is in charge Of the financial
department OF the New York Central. said that
he was director Of the Beech Creek Coal and
Coke Company. representing the interests Of
the railroad company on the board.
How did the railroad acquire its stock in the
original Beech Greek Coal and Coke Com
panye" inquired Commissioner Cockrel.
IT was given 10 the railroad in 1901. when
the coal company was organized
The railroad paid no cash for it?'
NO il was given for traffic reasons.
Continuing Mr.. Rossiter said that contract
had been signed by the railroad and the coal
company and the stock was given in considera-
tion of the contract This contract pro-
duced by counsel for the railroad company and
read by Mr. Whitney. Il was dated January u.
I9N and by its provisions the coal company
agreed 10 mine AT least million tons Of coal
every year and the railroad agreed 10 furnish
cars equal 10 that amount Of coal annually. eX-
elusive Of fuel cars. The railroad further agreed
10 interest Itself in no other coal company eX-
oepting the Clearfleld Bituminous Coal Corpora
,ion The railroad also agreed 10 purchase five
hundred thousand tons Of fuel coal every year.
Mr. Ross.ter said the Clearield corporation
was a merger Of a number of smaller companies
owned by the New York Central These COM
NAMES. he said supplied only fuel coal 10 the
railroad. The witness stated that the railroad
elso owned the entire stock Of the Gallitzen Coal
Company. but had agreement with the Web
ster Coal ard Coke Company and the Pennsyl-
vauia Coal and Coke Company. by which the
latter operated the mines.
Commissioner Clements asked Mr Rossiter
concerning the policy Of the New York Central
as 10 lis officials holding stock in coal mining
companies.
He said there was no absolute rule. but il was
tactly understood 70 be against the policy for
officials L. hold such stock.
DENIES CAR SHORTAGES.
C Il. Evlirgs. superintendent OF freight trans
portauon. stated that there were no individual
car on the New York Central Railroad other
thar ,h0se of the Beech Creek Coal and Coke
Company. The railroads policy, he said. was 10
furnish sufficient transportation facilities for all
coal mined. and there hae never been such
scarcity q ears at any time as seriously 10
hamper the individual mine production.
Other New York Central officials 20 testify
were A. Il Smith. general manager; J. p. Brad
feld general superintendent; p. L. Crowley
assistant general superintendent; ID. W. Dinan.
superintendent Of the Pennsylvania division;
T. ~ Evans. chief trainmaster Of the Penn
Eylyania division and John Christensen. vice
president q the New York division. in charge
James Kerr, II Clearheld,, mine operator,
President II the Beech Creek Coal Company and
director = tho Pennsylvania Coal and Coke
company, asked II any officials or the New
York Central held stock in the Pennsylvania
Goa. and coke Company. He said they did not,
eEceItag Tho shares credited 10 those who rep
resent Tie railroads interest, in order 10 qualify
them 70 act as directors. Mr.. Kerr said the
New York Central Railroad seldom gave his
company The number Of cars needed. but that
WGs due De tsought, 10 lack Of motive power
ratfer than attempt al discrimination.
i believe The railroad has always tried 10 be
iar iu its distribution Of cars" said the wit
ness.
DO you know anything Of a gentlemen's
agreement between Samuel r. Galloway former
president of the New York Central. and Presi-
oetr 4 J. CassaJt with regard TO the construc-
uor ~ sidiugs9' qUeried Mr.. Glasgow.
j heard that they had some arrangement
sbout The Development Of the region and the use
o. each others tracks"
'-Dlc you hear that no new operations were 70
he opened either line without the consent OF
the other road2"
cannot say that did"
There difficulty IN obtaining sidings was
thee uot2"
Yes There was always more or less diff
Guilty iu that direction"
Wasn't il because Of that agreement between
Ar Galloway and MI Cassatt?"
never heard So
Jonu II. Herchardr. Ct Brooklyn, secretary and
assistant treasurer Of the Buffalo. Rochester &
liJtsburg Railroad. testified that the company
cNlel nearly all Of tho coal companies on the
middle and i,ittshUrg divisions OF the road and
Ifo-le"d a0 per cent q The Tonnage.
FREDERICK MIDDLEeRook RESIGNS.
FTo1eIlck Middlebr0ok. for many years assistant
rersr f.cf1f linz