The Washington times., 1906-04-11
CAUGHT UNAWARES
RAILROADS REVEAL
A COAL COMBINE
Startling Disclosures Are
Made at Philadelphia
Hearing.
SITUATION LAID BARE
BituminouS Fields at Mercy
of Agreement and Oper-
ators Helpless.
SITUATION LAID BARE

PHILADELPHIA, April 1.-THE
disclosures of combinations between
the railroads penetrating the Penn
sylvania bituminous coal field TO di-
vide and regulate the traffic TO Tide
water. n. Y, and Northeast points
and destinations west of Buffalo and
Pittsburg. as developed at the Inter
state Commerce Commission hearing
here, came as the biggest kind of a
surprise TO the railroad officials in
terested
The participation of the Pennsyl-
vania Company in the Tidewater
agreement had been laid bare before
Francis l. MCGOWAN, general counsel
of the Pennsylvania, reached the
court room He had no time to ad-
wise with w H White, the statistical
commissioner, before the latter had
admitted that the contracts and by
laws of the association were in his
possession.
EXECUTED STOLEE NARCH.
w. a. Glasgow. jr.. the commission S
solicitor in the present investigation.
planned and executed the stolen march
upon the railroads. Within the past few
days by coming into possession indi-
rectly of certain of the monthly reports
OF the Tidewater and New York and
New England Associations. Mr.. Glas-
Cow became convirced Of the existence
OF mutual percentage understanding be-
tween the soft coal roads.
He learned that w. II White and l..
v. PassaEloIe were the executive heads
OF the Philadelphia bureaus OF these as
scciations. and he laid his plans to bring
them before the commission.
Railroads Felt Secure.
The general impression was created
that only high officials of the Pennsyl-
Vania and P1adlng were 10 be examined
al the present hearing. chiefly about car
distribution to- the mines in western
Pennsylvania
a feeling of security as TO the ex-
tent OF the investigation was engendered
among the railroad men.
General Manager Atterbury and Chief
Coal Freight =, gent SearIes of the Penn
sylvania. and Vice President VOORHEES,
were summoned days ago and until
yesterday morning no other subpoena
had been served
The surprise culminGted a half hour
before the commissions session opened
Deputy United States marshals, accom-
panied by Mr GlaSgOw's assistants call
ed at the Offices occupied by White and
Passamore and served them with sub
poenas 20 appear forthwith before the
commission.
There was 10 time to 90 anything but
opey tne summons. The process servers
made II point TO accompany the wit
hesses 10 the Federal court building and
neither statistican had a chance 10 call
IN or even telephone his principals or
get IN touch with counsel. Within a half
hour after being served. White was on
the witness stand and answer - under
oath a rapid-fire series of questions -
70 the Innermost workings OF the Tide
water Bitur1inous Association.
Both Attorneys at Sea.
Neither Judge Campbell of the Raad-
ing, nor Mr.. MCGOWAN, of the Pennsyl-
Vania. was able TO stem by legal tech
nicality the tide OF the testimony that
Started with Whites admissions.
Both attorneys geemed ar lose e.
what had happened. Whites testirno-,,
enabled Mr. Glasgow TO draw from NJ
Searles statement OF the existence of
the bureaus at Buffalo and Pittsb,,rg
while It also made useless any attemnt
on the part of counsel 10 prevent Passa-
more's explaining fully the contracts
bylaws. and business OF the New York
and Northeastern Association Not the
least OF the commissions success has
been in obtaining General Manager At
terbury'S statement that owners OF
private coal cars have an advantage
over operators depending solely on com
pany cars. Mr.. Atterbury said that be-
tore the present year company cars
were allotted pro rata among the mines
private car line owners thus having an
excess OF shipping facilities. BY a
company order, private cars are now
counted In the allotment OF all cars SO
that except by being certain of having
their own cars, private car owners have
TO particular advantage
The Pennsylvania now refuses &c
handle private coal cars unless an oper-
ator has at least 500.
Mr.. Atterbury is on record thai
transportation men would like to SEE
private coal cars abolished, since they
are nuisance to handle, but that with
out the certainty of delivery insured
Continued on Eleventh Pagel