New-York tribune., 1906-06-22
THAYER DEFENDS P.R.R.
Mistakes Honest, He Says-Rodds
Should Drop Coal StocFs.

yyasbtnrton. June 21.-The inquiry OF tue III
state Commerce Commission into the reiauons oe
- Threads and coal companies was devoted
TO-DAY 70 hearing statements and explanations ioiii
representatives Of the Eastern oituhli10uS 0,I
carving lines in regard 10 testimony preNto"9iS
,i,.ar before the commission The CHER witness
yas John r. Thayer fourth vice-president OF the
perrsvIvania Railroad He explained the princi-
pes of car distribution used by that road ana oe
clared that while IT might have made MISTAKES IN
Judgment regarding that branch cf It's business
they had been honest ones When asked "het"e1
the ownership of coal stocks by railroads might
not give occasion for criticism he said that ne oe
I.eved that the time had come when raliroaus
should not hold such stocks. and when the roaoS
should confine themselves strictly 10 the business
of transportation Thayer first explained the lue'
Of car supply and distribution. He said;
The basic principle of the distribution is to IKE
the ratings of the mines as one 1actor anu anu ' ne
have taken for certain periods. as another factoa
TO arrive at the proper percentage ana @ ey and n tie
car which is furnished for fuel for the ralTqaa Ti
company is counted against tnat percentage dha1 al
is method which was partially put INTO n eeJs IN lam m
November last in some OF tte & ISsi, ~, oi,r road
uary last finally in all the regions on oui io"'
Mr. Tbaver. continuing. said that before 1901 or
1902 while the Pennsylvania had difficulties with
its car supply things had been moving along
smoothly. without complaint Before $50 uIe
growth in its coal business was natural ana graz
ual but beginning with that year there was an IN
crease OF 100000 tons over 18o9 the total oeIns
164sOO0 tons In 1906 the tonnage grew 10 SJf4o.Vo
an increase of over 100 per cent since 1888 AIiS
threw such a burden the road that II was un-
able to furnish enough ca-s and had great oliri-
cultes in distribution
CAR DISTRIBUTION SYSTEM
Mr. Thayer entered into an elaborate explanation
of the result of the investigation by his ROAD OF
private cars. He said that before sailing tor
Europe in May President Cassatt gave orders Tor
the dscontinuance OF the Individual car system on
the Pennsylvania Railroad md had been provoKe1
because the subordinate officials did not reel aole
in operating the traffic department to carry out
that policy.
He said that until that experience was gained II
would be Difficult; to force the owners OF indivlo-
ual cars 70 part with them. They VIII all De slau
TO part with them. he said, if the Pennsylvania
could prove thai ii could accommodate the trarnc
in its own cars but 10 force them TO do IL no"
may place us under very extraordinary oohsa-
tions in carrying out contracts
The report on the whole question, prepared oy
Messrs Thayer and PuSh was submitted 10 the
commission in confidence. Mr.. Tkayer remarKlhs
that the PENNSYLVANIA Railroad did not care TO
Increase it's troubles in its financial deals with the
owners Of private cars Mr. Thayer salu the!e
were fifteen thousand of these indlv1dual cars III
operation on the Pennsylvania system and tnat
their use aroused the suspicious and JeaIousies oI
the small shippers. He hoped President Cassatt
nIan would be adopted within the next 1e" hon'iiS
Mr. Thayer believed the system OF nllie ia'ii'SS
Of the Pennsylvania was as fair as any t'A' 0ouiN
I ba
mare anv system that would prevent charges OF car
discrimination where private cars and those rur-
nished bv the railroads are operated togetner he
said the distributor sneels were PuDlIsu 9iu
| aTugavs omen to the inspection Of shippers IN the
Office Of the su2erntenGent OF pS t mies
II was however. a tentative system SUBJECT 10
Mr. Thayer then said that his road had put in IN
about 176 coal sidiugs since lSo he dtGIaIeo II u
were ae1ea ,o oheTs 70 as had been alleged There
I AZ
SINNERS who were desirous Of making shipments
i6r o az our pcscIationz because they wished
to ship coal at high prices and force II on the con.
operators with whom we had contracts
ROADS MISTAKES HONEST
He said that the end toward which the Pennsyl-
vana Railroad worked during the coal famine was
for the relief of the consumer and not the shipper
He believed his road made mistakes, but they
were honest ones that we're bound 10 occur during
such period Gf Tag!aTe gs9o 70 define more clearly
he was the man without any business. that he
Frank hon SniGF b PnnsIyania R5iIroad said
I6at he had never heard of the committee OF hve
that month 10 discuss company coal
about percentage on fuel coal He admitted hav-
ing received coal company stock IN the StandaIq
he had returned it SHORT time ago; because he
did rot think II had m4en aaige or "a any S PrISIs % S
Miller the president of The company. an old friend
had been returned since the investigation began.
Mr. Wilson. a lawyer Of Baltimore. on benalf Of
the Baltimore & Ohio. referred TO the various
causes Of suspicion on the part OF shippers. and
said he authorized TO announce that. although
the Baltimore & Ohio hitherto had not had an open
distribution of cars, such a system would be put
into effect promptly as the details could be
worked
Mr.. Thayer was recalled and Commissioner Glenn
ents asked him whether suspicion not always
aroused when there a shortage of cars by the
fact that the railroads financially tntereste6s
In coal companies and that therefore. there should
be such ownership. Mr.. Thayer finally expressed
that
the future there should be no ownership by rail-
roads of stocks IN coal companies.
In reply 10 question by counsel for the COM
mission Mr.. Thayer said he thought that, gen.
eral proposition. the time had come when the
transportation companies should confne them
selves solely to the transportation business and
nothing else.