The Montgomery advertiser., 1906-06-14
PAID FOR THE
 PRIVATE CARS The Generosity of the
 Pennsylvania. THE COAL PEOPLE BENEFITED Railroads Got the Benefit of a
 Special Rate. Fact Was Admitted by Lawyer of Cassntt's Road Before the In- terstatc Commerce. Commis- sion at PhiadcIphin.
THE COAL PEOPLE BENEFITED

Philadelphia, June 13.-Orders for pri- vate cars to be used by independent coal mining companies were placed with Pennsylvania Company and paid for by that company, which afterward had a settlement with the coal companies.
 This fact was established at today'S session of the Interstate Commerce Commission through the testimony of H. F. Schwartz, chief clerk of the Sales Department of the Pressed Steel Car Company and by information volun- teered by F. l. Gowen, counsel for the railroad company. On being assured by Mir. Gowen that payment for the cars was made to the railroad by the coal companies. MT. Glasgow immediately asked that the vouchers be filed with the commission IL was learned from the witnesses that cars ordered in bulk by the railroad got the benefit of a special tate but he was unable to say whether the coal companies proflted by this arrangement.
 E. B. Chase, saIesngent for the Der wind White Coal Company, presented a statement of cars received at the scalp level operations of the company dur ing 1903 which was found to be at va- riance with a table previously filed by the Pennsylvania Railroad.
 w. A. 0uInT1S,aa aa mine OpeTdIOT, tOl1 the Commission that when his repre- sentative applied at the office of Gen eral Manager Atterbury with an order for company fuel he was told he couid get it by paying to clerk named Hun or Hoff in Mir. Atterbury's office an al- lowance of 3 cents a ton. He did not say who imposed the conditions. He reported the matter to Vice-President Pugh and he secured the order with nIf NE~ n..rr at first discredited the story the wit ness said.
 New York Central Straight.
 L. W. MeCulloch, Auditor of freight rates Of the New York Central Ratl- road, was Another witness today. In answer to questions he said he had no knowledge of any rebates having been paid on oil shipments and said the New York Central had never adopted the system of blind billing" the rates m every case being inserted in the Icharges.
 Commissioner Clements announced today that the heads of the soft coal carrying roads had been invited to ap- pear before the Commission in Wash ington June 21.
 Lawyer Heebner stated that E. J. Berwind of the Berwind- White Com pany, will testify tomorrow.
 Information furnished at the Con- missions request showed that the E,x- ecutive Committee of the Chesapeake and Ohio Railroad Is composed prfncl- palIy of officials of the Pennsylvania and New York Central roads.
 Unexpected information was voiun- tered by Francis I. Gowen, counsel TOT the Pennsylvania Railroad concerning nrivate cars W. Bierman, secretary ofs the Standard Steel Car Company ana fl. E. Swartz, chief clerk in the sales department of the Pressed Steel Car Company. were examined concern ing orders from the Pennsylvania Rail- road for cars intended for independent mining companies. MT. Herman pro fessed to have no knowledge on the subject.
 Mir. swartz testified that the Pressed steel Car Company had received or ders from the railroad for cars fn- tended for the Berwind-White Com nanv and the Keystone Coal and Coke Company.
 who paid for them?' asked Mr' Glasgow.
 Lawyer Gowen interrupted with the statement that he thought 1t was un- derstood that the railroad having made the contract paid for the cars and set tlement was made by the coal compa- nies with the railroad.
 Glasgow Was Surprised.
 'I didn't know that" srid MT. Glas- gow in a tone of surprise. That IS what I have beer endeavoring 70 learn"
 Docs A railroad get better price than tnSanendent coal companies.
 "Bv ordering large numbers of cars the railroad gets the benefit or a spe- cial rate" replied the witness.
 Then I infer ttat a coal company which gets It's cars through the rail- road gets the benefit of that rate,' said Mir. Glasgow. ,,,... ,.. whether the railroad charged the coal cor1pany the same prices.
 Interesting testimony was given oy ". A. Guthrie. a mine operator Of In- diana, Pa, regarding his efforts to se- cure orders for company coal He said he sent j. c. Stauffer to the railroad con,panv's office, but the conditions im- posed were not acceptable. Asked to explain this statement, MT Guthrie said his company was promised an or der for fuel coal providing an allow .ance of 3 cents a ten was ma le to MT. Huff. a clerk in w. w. Atterbury's of fec.
 MT Guthrie said he offered stock in tho company to Mir. Scoficld. former f nief clerk in Vice President Rea's of flee. but the offer was declined Mir. Guthrie stateI that when the proposi ton to pay MT. Atterbury's clerk 3 cents d ton was made, he went to Vice President Pugh. The lGtter expressed surprise and was not inclined to credit the statement. His company later se- cured fuel ccal order without making the allowance,
 Vented RnilrOnd Man.
 why diI you offer stock to Scofield?" asked Attorney Gowen.
 T thought 1t would do us some good to have a railroad man in the com pany."
 Berwiud- White Company, precipitated a lively verbal encounter when he ob- tected to NJ Glasgow's method of examining Frederick Macowan. treas urer of the company. The acknowl- edged ignorance of the witness con cerning the business of the company irritated comm issioner Cockrell and he expressed himself forclbly, finally re- marking that lt was useless to ques- ton MT. Maoowcn further.
 M-. Glasgow cndeaI ored to learn from the witness why the allowance of fifteen cents a ton to the Berwind-