The Topeka state journal., 1906-05-29
Commerce Commission to Make
Thorough Investigation.
ROCK ISLAND NAMED.
But R. r. Hammond Says Line
Does Not Control Coal Concerns.
Gossip and Matters of Interest
in RailrOad Circles.

ton of its inquiry into the relations be-
tween railroads and coal productions
in the east, the interstate commerce
commission will probe conditions in the
great coal centers of the middle west.
Hearings probably will be held in Chi
cago, St. Louis and Kansas City.
Information is at hand showing that
monopolization of the coal supply by
railroads, as it exists IN the east, has
already extended in a partial degree
to the west. and is rapidly extending
to an equally complete absorption of
the coal fields. The coal fields of In
diana, Illinois and the Indian Territory
are in the grip of great railroad sys-
TENS and the carriers have dipped into
the coal belts of Missouri, Arkansas
and Iowa.
The bituminous coal supply of the
middle west centers chiefly in Ohio.
Indiana and Illinois with the coal de-
posits of Indian Territory equally inn
portant from the standpoint of pros
pective output. The Tilman- Gillespie
commission to investigate the national
situation as to this question, and to
render a report.
The commission. beginning in Penn
sylvania, already has turned up sensa-
tional facts showing how the railroads,
by discriminating against the inde-
pendent miner, have gradually forced
the consolidation of the coal producing
industry under the direction Of the
powers controlling the great railway
systems. 1t is fully believed that de-
tails as startling can be brought out in
the west, where the railroads Just re-
Gently have been reaching their ten
tacles out to grab the most promising
coal lands.
The Rock Island system is looming
up as coal controlling interest, rival
ing the Pennsylvania and the Reading
The Rock Island owns the Frisco,
dominates the Chicago & Alton. con-
trolls the Chicago & Eastern Illinois
and the Evansville & Terre Haute, and
down in the Indian Territory the Okla
homa ChoctaW & Gulf The Deerlng
Coal company is a. concern of recent
growth and Differed by the same Off
cials as the Rock Island.
The coal world locks forward con-
idently to an early consolidation of the
Deering Coal company and the Con-
solidated Indiana Coal company and
the Southern Indiana Coal company.
The merger is also expected to include
what has been known as the John r
Walsh group of Indiana and Illinois
mines, and the Dickinson Freeman
group
A close @community of interest ar
rangement already exists between these
properties, according to the fnforma-
ton here With these properties under
one direction. there would be practi-
cialIy but two coal companies in the
Eastern Illinois and Indiana fields that
controlled by the Rock Island and the
Vandalia Coal company. Pennsyl-
vania railroad corporation.
Both the Burlington and the Rock
Island are in the Southern Illinois ter
ritory. the latter controlling the Car
terville. or Marion county field. which
Is on the line Of the Chicago & Eastern
Illinois The Northwestern. Chicago
Milwaukee & St. Paul and the Buring-
ton own extensive coal areas in North
ern Illinois and Iowa. The Toledo &
Ohio Central and the Hooking Valley,
Vanderbilt roads, are masters of the
Ohio situation.
Incidentally. it may be said that the
Louisville & Nashville and the South
ern railway enjoy pretty nearly mon
opoly in the Alabama and Tennessee
fields. which are rapidly developing.
A dispatch from Chicago says that
r. r. Hammond. former general
manager of the Rock Island system.
is president of both the Dering Coal
COMPANY and the Consolidated Indiana
Coal company Carl Scholz, vice
president of the Consolidated Indiana
and consulting engineer for the coal
comDanies and the Rock Island rail-
road is the only person, according to
President Hammond. connected with
botf the coal and transportation cor
porations The other officers of the
Dering Coal company are: Vice Presi-
j. n
Rovnon: treasurer. Eugene McConaf.
II organized the Dering company,
a1d though the Rock Island owns a
large amount Of stock. and my
friends have the controlling interest"
said President Hammond last night.
a'The organization of the company is
matter of public record and the
railroads ownership is perfectly legal.
omen and above board. So far as
know the Rock Island owns all the
stock of the Consolidated Indiana.
The Dering company hasn't a dollar 8
worth of interest in the Consolidated.
There is no mutual interest be-
tween the two companies except that
the Dering now operates the Con-
solidated Indiana It was organized
by Mr. Scholz. well known rs g tech
nical author. who retired to vice pres
ident when 7 became its president.
don't know OF any transaction betW
the railroad and these companies that
isn't legal and proper We have "a
bituninOus coal mines in Illinois and
put IS approximately 1000, 600 tons
equally divided between the two
states while the Consolidated produces
3.000.0 900 in Indiana only. Less than
10 per cent. of our output goes to
railroads. and the Rock Island does
not purchase all its coal from us.
80 far as I know neither railroad
nor companies viii object to an in
vestiFation. Ny personal belief is
that it will be much better if the pub
lie understands our organization.
There is no unholy alliance and. If
an investigation is necessary for the
federal officials satisfaction. the
quicker they start the better we will
be suited"
CUT IN ICING RATES ON FRUITS
years Crop VIII Reach 1000 Car
Loads. Exclusive Of Oranges.
san Francisco. May 2s.-Announce-
uent has been made by the Southern
A