The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-05-18
CAVE REBATE AS
RECENTLY AS 1903
Such is Charge Against Penn
SyIvania Railroad
WIGTON ON THE STAND
Interesting Disclosures Made to Inter
state Commerce Commission In
Session at PhlIadeIphia-con-
dtions in Coal Regions.
WIGT0N ON THE STAND


as recently as 1903 was the charge made
today by Frank B. Wigton, head of the
Morrisdale Coal company before the in
ter-state commerce commission. Mr..
Nigton's statement caused something of
sensation because of that fact that
while the commission was In session in
Baltimore Vice President Thayer of the
Pennsylvania railroad appeared before
that body and stated that the company
had made no allowances or concessions
since 1899.
Mr.. Wigton was the last witness called
today. He gave a detailed statement of
the conditions in the soft coal region and
accused the Pennsylvania Railroad COM
pany of discrimination in the allotment of
coal cars, citing cases to substantiate his
charges. lie was asked hy~counsel for
the commission il he had any knowledge
of rebating by the railroad company. He
said in reply that since the retirement
of w. H. Joyce, general traffic manager
of the Pennsylvania, there had been no
rebating so far as he knew Within a few
months previously to the retirement of
Mr.. Jocye. however, he said they had
received rebates amounting to from 5000
to $4,000 on tidewater shipments. Mr.
Joyce retired in 1904
Mr. Wigton also named several other
companies which he said had received re-
bates.
Charles Il. Pugh, second vice president
of the Pennsylvania railroad, was one OF
the witnesses today. He was questioned
regarding his policy with regard to the
placing of sidngs. Michael Trump, gem
eral superintendent of transportation, was
-f1Nttt ton Of
cars, and r. l.. O'Donnell, general sup
erintendent of the Buffalo and Allegheny
valley division. told of having been given
blocks of stock in various coal companies
while he was in charge of the car distri-
button department of the Pittsburg di-
vision.
Alleged Determinations.
The Interstate commerce commission re-
sumed it's investigation today into the
alleged discrimination in the distribution
of coal cars.
The most important witness at the early
session of the commission was Michael
Trump, general superintendent of trans
portation The previous witnesses who
had testified concerning the distribution
of cars informed the commission that
they had acted under orders from Mr.
Trump.
Mr. Trump was asked to explain the
method of distribution between 1900 and
1903 He stated the rating of the coal
companies was fixed by taking the ton
mage of the various regions for several
years and endeavoring to strike to strike
an average
The tonnage system, he said. was used
until 1903 He was closely questioned COW
ering individual ears. He was asked If the
Berwind- White company and the hey-
stone Coal company did not have enough
private or individual cars to carry all
their tonnage. He said that was the
case.
us it a rule of the railroad company
that no coal company shall have less than
500 individual cars?' Attorney GlasSoW
asked the witness.
"frhat was a rule adopted by the COM
many to discourage the use of individual
cars.
"nont YOU know" said Mr.. Glasgow,
that during the Pennsylvania railroad
most strenuous period of freight conges-
ton, the company sold 1000 cars to Ber-
wind White and 800 to the keystone Coal
.and Coke company? You don't call that
discoura cling the use of individual cars
do you? ls 1t not fact that the rule
was adopted for the purpose of discourage
ing only small operators?
I'VE thought 1t would discourage every
body" Mr.. Trump replied
MAS the rule enforced?
Exceptions Made.
well, exceptions were made. In some
cases we varied the rule, allowing l0o
cars in one year and 200 cars within three
years
Asked what efforts were made TO insure
the proper distribution of cars, Mr.. Trump
said General superintendent creighton
furnished him with weekly reports oil the
allotment.
Mr.. Glasgow wanted to know why the
COMPANY did not make public the num-
her of cars to which each company was
entitled, the number it received and the
number sent to the district
Mr.. Trump said there was no substahtiai
affection, but he did not think 1t neces-
sary. Mr.. Glasgow inquired as to Mr..
rrumps holdings of stock in coal COM
NAMES He said he had 200 shares in the
Atlantic Crushed Coke company, paying
per cent dividends, and 400 shares IN lhe
keystone Coal and Coke company. Inc
stock in the first-named company was
given to him by J. f. Patton, superln-
tendent of the Pennsylvania railroad. lie
held 100 shares of Clarion and Carbon
company stock, and when these COM
panies were absorbed by the Keystone
Coal and Coke company he received ="
shares of Keystone stock for ms hoioines
in the Clarion and Carbon Later when
tho capital stock of the Keystone Coal and
Coke company was increased his holdings
were increased to 400 shares
A discussion took place between Attor-
ney Gowen and Attorney Glasgow as 10
the purpose of the private car and tne
necessity of publicity of percentage aiiot-
ments Mr. Glasgow declared that the
Pennsylvania railroad by selling private
cars to coal companies and by making
enecial assignments of cars practically
guaranteed the contracts of those COM
panies This, he said, was a discrimina-
tion. because it made 1t possible for some
oompanies to enter into contracts While
other companies not so fortunate were
prevented from doing So
People Are Suspicious.
Commissioner Cockrell, addressing Mr.
Gowen, said
Of YOU conceal something people are
suspicious. and they have right to be.
n will be that way as long as you do
something behind a curtain. The rail-
road is a public service and the public
has a right to know what is being done.
If must be open and above board. Your
safety is for you to purchase the private
cars from the coal companies, and make
them part of your equipment. not TO
sell your cars for individual USE
Mr.. Trump was excused in order to
procure statistics requested by the com
mission and Charles E. Pugh. second
vice president, was called. Mr.. Pugh
said he has been connected with the Penn
svlvania railroad since 1853. and that he
a. also a director of the Long Island
railroad. He was asked II he could ex-
E-I.;, tho diffclllty which had arisen