Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-06
Commission Will Finish Examining Minor
Officials First
WHEELS ARE FOUND WITHIN WHEELS
Coal Companies Allied with Railroads Con-
troll Smaller Coal Corporations
RAILWAY COMPANY HOLDS MUCH STOCK
valuable Securities Given by Mining
Concern In Exchange for TrHmc
Arrangements with the
Pennsylvania Road.
MR.. cAssATT MAY NOT Be CALLED


PHTIADFsI. .PHIA June b.-Contrary 10
expectations. President Cassatt OF the
Pennsyivania railroad did not appear pc
fore the Interstate Commerce commission
today when It resumed it's investigation OF
the alleged connection Of railroads with
the soft coal and oil interests Commls-
sioner Clements said the investigation had
reached the stage that demanded the testl-
nlony Of Mr. Cassatt.
The New York Central railroad, the
PuffaIo. Rochester & Pittsburg railroad and
the Baltimore & Ohio railroad were under
investigation, the hearings being conduc-
ted by Commissioners Clements and Cock
reu Examination OF officials of the New
York Central railroad occupied all of the
morning session and a part OF the after
noon session II developed that no en-
ployes or officials OF the company hold
stock In coal mining or oil companies.
Vice President E. w. V. Roster testified
however. that the Beach Creek Coal 4
Coke company had presented the railroad
5000 shares OF stock, par value 800, TOR
traflcreasons." Later when the Beech
Creek companw was merged into the Penn
sylvania Coal & Coke company this stock
was surrendered, the railroad receiving
pany.
The proceedings brought out no revel-
ations Of sensational character.
Minor Omcials Called First.
II Is not certain that President Cassatt
OF the Pennsylvania will be called as a
witness before the Interstate Commerce
commission. which today resumed its n-
vestlgation into alleged discrimination In
the distribution of coal cars. No sub
poena has been issued for President Cas-
satt and Commissioner Clements indicated
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 untN
we know all about this matter. AS far as
know there has been no communication
on the subject between the commission
and PrexiGtnrt cassatt
A number of officials Of the New York
Central railroad will be among the wit
nesses at the present hearing. Among
those who are expected to testify are: F.
E. Herman, local traffic manager; John
Carstersen vice president and in charge
OF the accounting department.; L. w. Ros-
sitter. vice president and in charge Of the
financial department. A. II. Smith. general
manager; j. p. Bradheld general superin-
tendent; c. w. Ewlings. superintendent OF
freight transportation; p. Z. Crowley, as
sistant TO the general superintendent, and
d. w. Dinan, superintendent of the Penn
sylvania division with headquarters at
Corning, n. Y.
e. w Rossiter, vice president OF the New
York Central s. Hudson River Railroad
company, in charge OF the financial depart
ment, was the first witness. The examina-
tion was conducted by Attorney E. B.
Whitney Of New York.
In answer to questions Mr.. Rossiter stated
that he is a director OF the Beech Creek
Coal sad Coke company representing the
interests OF the railroad company on the
board lie explained that the railroad
originally held 5000 shares in the Beech
Creek Coal and Coke company and that the
company was absorbed by the Pennsylvanis
Coal and Coke company. while now a part
OF the latter company. it's business wa,
conducted under its original title. The rail-
road witness said il owns 5000 shares OF
preferred, 5000 shares OF common stock ant
$4,000 worth of per cent bonds in the
Pennsylvania Coal and Coke company.
How did the railroad acquire its stoo,
in the original Beech Creek Coal and COX,
company" asked Commissioner Cockrell
1T was given TO the railroad in 1901
when the coal company was organized.
The railroad paid no cash for it?"
mo; II was given for traffic reasons"
Coatraet Between Companies.
Continuing Mr.. Rossiter said that a con
tract had been signed by the railroad an,
the coal company and the stock was give,
IN consideration OF the contract.
This contract was produced by counse
for the railroad company and read by Mr.
Whitney. 1t was dated January II. 1901
and by its provisions the local coal com
pany agreed 10 mine at least /, 600, 90
tons OF coal every year. ana the railroal
agreed TO furnish cars equal to tha
amount OF coal annually. exclusively o
fuel cars, The railroad further agree
TO interest itself In no other coal cota
Pany excepting the Clearheld Bituminou
Coal corporation. The railroad also agree
70 purchase 100000 tons of fuel coal ever
year.
The total capital of the Pennsylvani
Ceal and Coke company, Mr.. Rossite
thought is slo,ooo,ooO or $4,000, 900.
Mr. Rossiter I'm answer to Mr.. Whitne
said the Clearield corporation vas
merger OF a number OF smaller companie
owned by the New York Central Tbes
companies he said, supplied only fuel eos
10 the railroads. The capital OF the cor
poration, he said was 81 100000. The wi,
ness stated that the railroad also owne
the entire stock OF the Gallitzen Coal CON
pahy but had an agreement with the Wei
ster Coal ana Coke company and the Penn
sylvania Coal and Coke company by whic
the latter operated the mines.
Commissioner Clements questioned NJ
Rossiter concerning the policy OF the Ne
York Central as TO It's ohcials hoIdiu
stock in mining companies.
He said there was no absolute rule, but
was taeitly understood 10 be against Il
policy for omcials 10 hold such stock
Arapahss votss oa Rona..