The Oskaloosa herald., 1906-06-07
STOCKS AND BONDS
GIVEN TO RAILROAD
NEW YORK CENTRAL BENEFIT.
cIARY OF COAL SHIPPERS,
TRAFFIC REASONS GOVERN
Road Agreed to Furnish Cars for One
Million Tons of Coal, Which
Fuel Concern Was
4 r to Mine.

Philadelphia, June 6. The New
York Central & Hudson River railroad
has been added to the list OF those
charged with receiving gifts from coal
companies.
L. v. w. Rossiter, vice president OF
the road, in charge of the financial de-
partment, was the first witness before
the interstate commerce commission
when that body Tuesday resumed its
investigation into alleged discrimina-
tion in the distribution of coal cars.
Mr.. Rossiter stated he is a direc,or
oil the Beech Creek Coal and Coke
company, representing the interests OF
tne railroad company on the board. He
explained that the railroad originally
held 5000 shares in the Beech Greek
Coal and Coke company, and that the
company was absorbed by the Pennsyl-
vania Coal and Coke company.
While now part of the latter COM
pany its business was conducted un-
der its original title. The railroad, the
witness said, owns 5000 shares Of pre-
fcrred, 5000 shares of common stock,
and 100000 worth of five per cent.
bcEds in the Pennsylvania Coal and
Coke company.
Says Stock Was a Gift.
"How did the railroad acquire its
stock in the original Beech Creek Coal
and Coke company?'it inquired Com
missioner Cockrell.
"It was given to the railroad in
1901, when the coal company was or
gained"
1.-The railroad paid no cash for il" !"
mo. 1t was given for traffic rea-
sons
Continuing, Mr.. Rossiter said that a
contract had been signed by the rail-
road and the coal company and the
stock was given in consideration OF the
contract. , .. l5
This contract was produced by couti-
sci for the railroad company and read
by Mr.. Whitney. 1t was dated jan
uary II, 1901. and by its provisions the
coal company agreed to, mine at least
100000 tons of coal every year, and
the railroad agreed to furnish cars
equal to that amount of coal annually,
exclusive of fuel cars. The railroad
further agreed to interest itself in no
other coal company excepting the
Clsarfield bituminous coal corporation.
The railroad also agreed to purchase
100000 tons of fuel coal every year.
The total capital of the Pennsylvania
Coal and Coke company, Mr.. Rossiter
thought, is $4,000, 900 or s12,OOO,OO
Interested in Other Companies.
Mr. Rossiter, in answer to Mr.. Whit
ney, said the Clearfield corporation
was merger of number of smaller
companies owned by the New York
Central These companies, he said,
supplied only fuel coal to the rail-
read The capital OF the corporation
be said was $l,OOO,OOO. The witness
stated that the railroad also owned
the entire stock of the Gallitzen Coal
company, but had an agreement with
the Webster Coal and Coke company
by which the latter operated the
mines. M
Commissioner Clements questioned
Mr.. Rossiter concerning the policy OF
the New York Central as to its officials
holding stock in coal mining COM
panles
He said there was no absolute rule,
but 1t was tacitly understood to be
against the policy for officials tc hold
such stock.
Cassatt May Not Testify.
II is not certain that A. j. Cassatt,
president OF the Pennsylvania Railroad
company, will be called as a witness
before the commission No subpoena
has been issued for President Cassatt
and Commissioner Clements indicated
that he might not be asked 10 testi-
fy. Mr.. Clements said:
I'VE will not ask the highest officials
o: any OF the roads to appear until we
have learned all that Ia possible from
their subordinates, and then, If we
think we want more light on the sub
ject, we may send for them. However
we will not stop until we know all
about this matter, As far as I know
there has been no communication on
the subjsct between, tho commission
and President Cassatt.Is'