The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-06-06
RAILROAD OFFICIALS
TRYING TO EXPLAIN
Against General Policy for Off
cials to Hold Coal
Stocks.

PHILADELPHIA, June 6.-It is not
certain that A. j. Cassatt, president of
tho Pennsylvania Railroad company will
DC called ns witness before the Inter
state Commerce commission, which today
resumed It's investigation into alleged dis
elimination In the distribution OF coal
cars. No subpoena has been Issued for
President Cassatt however Commits
sloner Clement sold:
'We Will not ask the highest officials
OF any of the roads to appear until we
have learned all that is possible from
their subord.nates, and then II we think
We want more light on the subject we
may send for them. However we will
not stop until we know all about this
matter. AS far as know there has been
no communication on the subject between
the commission and Precident Cassatt."
officials as Witnesses.
"A number of officials OF the Now York
Central railroad Will be among tho wit
nesses during the present hearing,
New York Central &c Hudson River
railroad. in charge OF tho financial de-
psrtment was the first witness. The ex-
animation was conducted by Attorney E.
b. Whitney OF New York
In answer to questions. Mr.. Rossiter
stated that he Is director OF the Beech
renting the interests OF the railroad com
pany on the board. He explained that the
railroad originally held GOO shares In tho
Beech Creek Coal and Coke company
and that the. company was absorbed
by the Pennsylvania Coal and Coke COM
pany, While now part of the latter
company. It's business was conducted
witness said. owns 1000 shares OF pre-
ferreds 5000 OF common stock and $500. 900
worth of FIVE per cent bonds In tho
Pennsylvania Coal and Coke company
Pertinent Questions.
How did the railroad acquire Its stock
In the original Beech Creek Coal and
Coke company7'' asked Commissioner
1T was given to the railroad in 1901.
when the coal company was organized"
The railroad paid no cash for it?"
Continuing, Mr. Rossiter said that a
contract had been signed by tho railroad
and the coal company. and the stock
tract. This contract was produced by
counsel for the railroad company and
read by Mr.. Whitney. 1t was dated
January IT, 1901, and by It's provisions the
900. 900 tone of coal every year, and the
railroad company agreed TO furnish cars
equal to that amount OF coal annually.
exclusive OF fuel cars. The railroad
further agreed to interest itself In no
other coal company, excepting the Clear
field hituminous coal corporation The
tons of fuel coal every year.
The total capital OF the Pennsylvania
Coal and Coke company. Rossiter
thought, Is slo,0oo0oo to Sl2oO0,0o0
Supplied Fuel Coal.
Mr.. Rossiter. in answer to Mr.. Whit
ney, said the Clearneld corporation was
a merger of a number OF smaller com
These companies, he said, supplied only
fuel coal to the railroad The capital
of the corporation. ho said, was 81 900. 600.
The witness stated that the railroad also
owned the entire stock of the Gallitzcn
Coal company. but had an agreement
with the Webster Coal and Coke COM
company by which the latter operated
Central's Policy.
Commissioner Clements questioned Mr..
Rossiter concerning the policy OF the New
York Central as 10 It's officials holding
stock In coal mining companies
He said there was no absolute rule, but
II was tacitly understood TO be against
the policy for odleials to hold such UGH, stock @
trail railroad seldom gave his company the
number of cars needed, but that was due,
he thought, to lack Of motive power.
Gentlemen's Agreement
DO you know anything OF a gentle
mems agreement between Samuel X. Cal
loway, former president OF tho New YORK
Central and President A, j. Cassatt, with
regard to the construction OF sidingsT'
inquired Mr. Glasgow.
II heard that they had some arrange
rnent about the development OF the region
and the use OF each other tracks"
Did you hear that no new. operations
were to be opened on either line without
tho consent OF the other roadY
II cannot say that did.
There was difficulty In obtaining sid
ings was there2'
Eyes; there was always more or less
difficulty in that dlrection-
Wasn't It because OF the agreement
between Mr.. Galloway and Mr. CassattF
''I never heard So.
The hearing Will be continued tomor-
row.
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