Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-05
PROBING THE 'PENNSY'
Inquiry by the |. C. Commission
Was Resumed
IN PHILADELPHIA TODAY
Further Evidence as to Alleged Dis
elimination
IN DISTRIBUTION OF CARS
Preferred Stock of Coal Company
Presented to Railroad for
Traffic Reasons.
N DISTRIBUTION OF CARS

PHILADELPHIA, Pa, June 5.-It is not
certain that A. ]. Cassatt, president OF the
PennsylvaniA Railroad Company will be
called as a witness before the interstate
commerce commission, which today re-
sumed its investigation into alleged dis
elimination in the distribution of coal cars.
No subpoena has been issued for President
Cassatt. and Commissioner Clements indi-
Gated that he might not be asked to testify.
Mr.. Clements said:
I'VE will not ask the highest officials of
any of the roads to appear until we have
learned all that is possible from their sub
ordinates. 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 I
Know there has been no communication on
the subject between the commission and
President Cassatt."
number of officials of the New York
Central railroad will be among the wit
nesses during the present hearing. Among
those who are expected to testify are:
Some to Be Called Upon.
F. E. HERMAN. coal traffic manager;
John Christensen, vice president and in
charge Of the accounting department; E.
V. w. Rossiter. vice president and In
charge OF the financial department; A. H.
Smith. general manager; j. P. Bradfield,
general superintendent; C. H. Ewlings, su-
perintendent of freight transportation; p.
u. Crowley, assistant to the general super
intendent and d. w. Dinan. superintend-
ent of the Pennsylvania division, with
headquarters at Corning. N. Y.
E. " w. Rossiter. vice president of the
New York Central and Hudson River rail-
road, In charge of the financial department
was the first witness. The examination was
Ad nv II 80
New York. In answer TO questions Mr..
Rossiter stated that he is a director of
the Beech Creek Coal and Coke Company
representing the interests of the railroad
company on the board. He explained that
the railroad originally held 5000 shares in
the Beech Creek Coal and Coke Company
and that the company was absorbed by
the Pennsylvania Coal and Coke Company.
While now part of the latter company it's
business was conducted under its original
title. The railroad, the witness said owns
1900 shares of preferred. 5000 shares of
common stock and 100000 worth of per
cent bonds in the Pennsylvania Coal and
Coke Company.
Stock Given for Traffic Reasons.
How did the railroad acquire its stock
In the original Beech Creek Coal and Coke
Company?' inquired Commissioner Cock
rell
1T was given to the railroad in 1901,
when the coal company was organized"
The railroad paid no cash for it?'
mo. 1t was given for traffic reasons"
Continuing Mr.. Rossiter said that con-
tract had been signed by the railroad and
the coal company stock was given In con-
sideration Of the contract.
The contract was produced by counsel
for the railroad company and read by Mr..
Whitney. 1t was dated January IL, 1901
and by its provisions the coal company
agreed TO mine at least 100000 tons of coal
every year. and the railroad agreed to fur
nish cars equal to that amount of coal cl-
nually, exclusive of fuel cars. The railroad
further agreed to interest itself in no other
coal company excepting the Clearfield btu
minous coal corporation. The railroad
also agreed to purchase 500 coo tons of fuel
coal every year.
The total capital of the Pennsylvania Coal
and Coke Company, Mr.. Rossiter thought, is
$40 100000 or S12.00o,o00.
A Merger Of Small Companies.
Mr.. Rossiter. In answer to Mr.. Whitney.
said the Clearfeld corporation was a
number OF smaller companies owned by the
New York Central. These companies. ne
said. supplied only fuel coal to the railroad
The capital of the corporation, he said, was
81 ,OO00 GOO. The witness stated that the
railroad also owned the entire stock OF the
Gallitsen Coal Company, but had an agree
ment with the Webster Coal and Coke
Company and the Pennsylvania Coal and
Coke Company by which the latter operated
the mines.
Commissioner Clements questioned ldr.
Rossiter concerning the policy of the New
York Central as to It's officials holding
stock In coal mining companies.
He said there was no absolute rule, but 1t
was tacitly understood to be against the
policy for officials TO hold such stock.
c. II. Ewiings. superintendent of freight
transportation. was next called. He was
questioned concerning the distribution OF
cars and said the company never refused
to inform a coal company as to its rating.
He did not recall ever having been asked
by one operator for the rating of another,
and said IL was rule OF the company, gen.
orally observed. that when 1t was intended
to change the rating of mine the operator
was consulted. He was asked II he had re-
ceived complaints from operators of a
shortage OF cars.
Complaint Is Common.
"A man wouldn't be a mine operator un-
less he complained" was the reply. "Wher-
ever shortages occur we endeavor to make
them up soon possible"
Mr.. Ewlings said the rating of mine was
established by its possible output and ac-
tual production during a given period. He
stated further that there were no individual
cars on the New York Central railroad
other than those of the Beech Creek Coal
and Coke Company. The railroad policy
he said was to furnish sufficient transpor-
tation facilities for all coal mined and that
there had never been such a scarcity of cars
at any time to seriously hamper the in
dividuai mine production.
Mr.. Ewlings said the ratings were made
by him personally or by competent clerks
in his department.
Commissioner Clements asked the witness
n he did not consider publicity In the mat
ter Of distribution better policy both fol
the railroad and the coal company. Mr.
Ewiings said he could see no objection to
such a method.