Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1906-02-17
BAER FLAYS
LAW MAKERS
President Of Reading Ridicules Pro
rs div atiS ,aoa If Coal Roads.
ID p -ITE. lI8H COAL PRICES

Philadelphia. Pa, Feb. 12.-George
T. Baer. PRECEDENT oC the Reading
Railway company save ont a state.
ment concerning the companys att.
tude toward the investigation demand
ed by the Pennsylvania legislature
into the alleged combination OF rail.
road and mining interests. in violation
Of the state constitution The state
ment is as follows:
Ny attention has been called 20 the pos
si1illty that there are "a great many pco-
pie in the country who may take the
nction OF the Pennsylvania legislature
seriously. and that therefore. some state
ment % the facts should be made
Ftrst-As 90 the right OF the Reading
company 20 own stock OF coal companies:
The legislature Seems 20 be the only law
officers and law makers Of the state who
are ignorant Of the provisions OF the con-
Btltuton OF 1878. All the corporations re-
fcrred 10 obtained their rights and fran
chiscs under charters granted prior 20 the
adoption OF the new constitution The
trainers Of the constitution well knew
that these were vested rights fully pro-
tected by the law OF the land. and to
prevent any misa purchension the new
constitution explicitly declares in article
Is section o. And AN rights actions
prosecutions and contracts shall continue
as ri this constitution bad not been adopt
ed and Co sim further set forth their
meaning they declare fin article Is that
"An existing charters or grants or spe-
cial or exclusive privileges under which a
bona 0dc orrainzafiou shall not have
taken place and business been commenced
In good faith at tne time Of the adoption
OF this constitution. shall thereafter have
mo- validity"
The supreme court or the state has sew
ernl times passed upon the effect OF the
new constitution tn repeating vested
rights uud franchises. and have Uniform
~ hold that these constitutional umita-
tious did not apply Co corporations exist
ing prior TO The passage OF the new con-
stitution.
But am this can safely be left 20 the
report or the attorney general. The reign
OF law has not ceased in pcnnsylvaia. and
investors ln Pennsylvania securities need
not be alarmed at the vugurics OF the
legislature
sccord-'rhe resolution AYERS. 1T Is al
loccd that Tho price OF anthracite coal has
been raised since the last anthracite coal
strike ST. COB 'f 25 per ton. yet tho eo-colled
operators arc refusing 90 ALLOW the min
err an increase in wnEcs. thus another
strike is threatened" This is in form a
cowardiy statement. the falsity OF which
the public should know.
Prior 90 1870 The wages as paid by the
Philadelphia g. INodinr Coal A. Iron COM
ponN were NNnu OF a sliding scale. Tn 1900
under thc ieadcrerip of tho United Mine
Workers OF America tho labor troubles
began. 10 is just therefore. Co compare
prices and costs in 1899 with present costs
and prices
The average price. per ton. received by
the coal and iron company FOR fits coal
az the mines iu 1900 WAS Sl.113. the aver
axe price. per ton. received Ga 1906 was
g fs9. This shows AN increase OF % clio
cents per ton iu seven years
The increase in the cost OF mining coal
was C 2-lG cents per ION. which was made
up as follows: Labor cost per ton. 1899
N.o67; labor cost per ton. 1905. Sl5S4. The
cost of materials Increased from 81 4-i0
cents in 1899 90 43 cents in 1906. In other
was Labor ~ 1-1o cents. materials. II clio
the coal company ara increase OF only
10 $40 cents per ton Boa the last seven
years
IN point OF fact Notwithstanding this
Increase OF 1o $40 cents per ton. n the
coal and iron company had charged the
usual average royalty OF 30 cents per ton
FOR coal mined from its own mines. the
operations OF the company would have
resulted iu a loss.
by reference Co the annual report OF the
Coal a. Iron company for thc year 1929
70 VIII Dee found that thc surplus for that
year was only sac 03S.3o. in the previous
fiscal year there was deficit OF SIS
B245f
These are tho facts. and n any commit
tee Of the legislature awnts 20 verify their
accuracy. the books OF the company are
open for inspection.