The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-12
MINES AT MERCY OF RAILWAYS
PRICE AND OUTPUT OF BITUMI.
NOUS ARBITRARILY FIXED.
Existence Of statistical Bureaus" which
We're Really Pool Clearing Houses,
Brought Out by Interstate Commits
slon-How the Tranlc was EqualIzed.

" ~
Were Really Pool Clearing Houses,
Brought Gu by Interstate Commits
slon-How the Tranlc was EqualIzed.
PHILADELPHIA, April 11.-That for ten
years the Pennsylvania Railroad, with the
aid of several other lines which combined
with 1t, made railroad rates and arbitrarily
fixed the price OF bituminous coal was
the most important fact disclosed at to-
days session Of the Interstate Commerce
Commission.
Attorney William A. Glasgow, Jr., also
bro ught out the fact that this condition
prevails at the present time. While the
methods used to reach the desired end
are slightly different, and while the moves
Of the railroad men are made more cau-
tiously. the effect is the same to the con-
sumner that it was ten years age.
Having for years concealed the existence
OF the four statistical bureaus which
were really clearing houses for railroad
pools conducted in restraint Of trade and
it is alleged, in direct violation of the Sher-
man antitrust law, the railroads had no
thought that the commission had learned
Of the existence Of the bureaus.
Lawyer Glasgow and his assistant, Mr..
Whitney Of New York. were careful that
subppnas should not be served upon the
bureau heads until the last momen 1t
was just before the opening of the hearing
on Tuesday that U. H. White Of the Btu
minous Tidewater Steam Coal Traffic
Association was called. This delay en-
abled the commission to get possession OF
the bylaws and minutes Of two of these
fN,,r nuaaoiofiOpa md TINA fnrCA the rail-
roads to give information that otherwise
could have been concealed.
Most of the testimony of Importance was
obtained from j. c. Scar les, general coal
sales agent Of the Pennsylvania Railroad,
who was on the stand most Of to-day.
While examining the witness, Mr.. Glas-
cow held the minutes OF the two pools in
which Mr.. Searles looked after the interests
of the Pennsylvania Railroad, and as the
attorney asked question after question
which meant danger to the railroads, Mr..
Searles could only reply: IF it is in the min
utes il must be So
Agent Searles's testimony, his memory
refreshed from the minutes Of the %statisti-
cal bureaus, showed that the railro ads
belonging to these bodies not only fixed
rates in a to determine the price
of coal, thus sitting composition and Great
ing a monopoly for themselves, but that
when the agreed percentage of tonnage
was not gained by each road ~clearances
were made through these bureaus. Roads
which carried more than their allotted
share had to pay a cash consideration tothe
other roads.
No road in the combine could change
it's rates unless all of the other members
Of the association agreed to the change.
Efforts were made to show that not only
by the payment OF cash, but by car distribu-
tion the railroads endeavored to keep up
these percentages. After a time the cash
payments stopped and instead of the rail-
roads reimbursing each other with cash, a
railroad which had carried too much coal
would hold back its cars from the mines
on it's lines. The fact that the mine owners
who had no cars sufi ered made no difference.
Close connection was shown 10 exist
between the Pennsylvania and the New
York Central in certain parts Of Pennsyl-
vania, where agreements were made
whereby certain territory was allotted TO
one or other Of these roads, the roads being
pledged not to carry coal from mines in
the territory of the other.
RICHMOND, Va, April 11.-President
Stevens Of the Chesapeake and Ohio Rail
way in a statement to-day denies that
there was any combination or agreement
in the matter Of coal tonnage between his
road and any other road and says that
there has never been silce he assumed
the presidency. He acknowledges that
there was some such arrangement previous
to that time, but the arrangement has
passed out OF existence.