The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-04-27
FIRST WITNESS ON THE STAND
Hearing Before Interstate Commerce
Commission of Report Called for fin
the Tillman- Gillespie Resolution.
Goa Rates to Norfolk, Richmond
and Other Points Testified TO.

Washington, April 23.-The inter-
state commerce commission today re-
sumed here the hearings recently in
augurated under the Tillman-Gilespie
resolution requiring the commission to
inquire into a report il railroads have
any interest in coal and oil transported
over their lines as common carriers.
Today the first witness called was T.
D.. Hobart, coal and coke freight agent
for the Norfolk and Western railroad.
Mr.. Hobart was questioned at some
length as to the coal rate into Norfolk,
Richmond and other points over their
road, also as to rates on the Chesa-
peake and Ohio. According to the fig
ures given by the witness, the Norfolk
and Westerns rate into Norfolk was
twenty-five cents higher than the Ches-
apeake and Ohio rate, and the rate of
the Chesapeake and Ohio into Rich
mond 25 cents per ton higher than the
Norfolk and Western rate to that point,
up W <Ap11i 4Ot, ioot, Il "LlNh LII
they have been the same. Asked why
the Norfolk and Western rate was
higher into Norfolk than the Chesa-
peake and Ohio, and the Chesapeake
and Ohio higher into Richmond than
the Norfolk and Western, the witness
said that the Norfolk and Western had
no direct line into Richmond, while
Norfolk was n of it's local points, and
on the other hand that Richmond vas
a local point on the Chesapeake and
Ohio. He thought the Norfolk and
Western was entitled to the business
into Norfolk and the Chesapeake and
Ohio into Richmond. Asked if there
had been any understanding between
the two roads that n would charge
a higher rate into Norfolk and the
other into Richmond, the witness said
there had been some conversation be-
tween officials, and did not deny that
an arrangement had been made to that
effect.
Replying to a question by Mr.. Glas-
gov, the witness said they had not met
the Chesapeake and Ohio rate into
Richmond on account of His
road, he explained, could carry coal to
Norfolk, one of its own points, and
save the revenue that would be lost by
going into Richmond, since they were
obliged to pay an arbitrary rate on the
lines connecting the Norfolk and West
ern with Richmond.
Previous to 1901 the rate into Rich
mond, Mr.. Hobart said, was $3.50 per
ton, then was raised TO $1.75, and in
1908 was raised to s1.S3, and on April
LIST last was lowered to $1.6O-the pres
ent rate. The rate to Lamberts Point,
he said for reshipment outside the Vir-
ginia p is $1.35 for 2,240 pound tons
and S1.6O for Norfolk and local harhOr
points.
Replying to Commissioner Clement
the witness said it was about April l,
1903, that officials of the Norfolk and
Western and Chesapeake and Ohio dis
cussed the Norfolk and Richmond rates
of the two roads. He said the presi-
dents and some of the traffic officials
of the two roads were present. He
said the Norfolk and Western rate was
raised at that time, and that it was his
recollection that the Chesapeake and
Ohio rate to Norfolk was increased.
This relation, it was added, was main
tanned until March 16 last.
Mr.. Hobart said he owned no stock
in any of the coal companies and knew
of no officers of the company that
owns any.
Asked by Mr.. Glasgow as to the
theory upon which the rates to Norfolk
and outside the capes were made, the
witness said the rate outside the capes
was part of a through rate.
Asked by Commissioner PrOuty as to
why rates we're made the same by the
Norfolk and Western and the Chesa-
peake and Ohio on April list last the
witness thought it was due to an under
standing.
Mr.. Hobart said that he understood
that Mr.. Maher, general manager OF
the Norfolk and Western, had been in
terested in coal prior to becoming an
officer of the Norfolk and Western, but
that he gave up that interest upon be-
coming an officer of the railroad COM
pany.
Mr.. Hobart testified that General
Manager Maher was expressly told
that as a condition precedent to his
becoming an officer of the Norfolk and
Western, he must dispose of all his
SlOCk III Tie Mailer CUdl COuCcIu, Wu1Cu
he did. He added that it was the fixed
policy of the Norfolk and Western that
no officer in the company can OVID
stock in the collieries.
Mr.. Prouty, in questioning the wit
ness, asked if there was any UNDER
standing between the Norfolk and
Western and the Baltimore and Ohio,
relative to the Baltimore and Norfolk
markets. The witness said there was
not, adding that the Baltimore field
was an unnatural market for the Nor
folk and Western, but later said there
was a "sort of understanding" that the
Baltimore and Ohio should have the
territory inside the capes and the Nor
folk and Western should have Norfolk,
but this he said was recently aban-
doned.
The witness was questioned regard
ing the Tidewater Bituminous Steam