The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-06
FIND NOGRAFT IN n. Y.CgNTUAL
va EIIDENCE ~ FttORS TO ON
FROv OFFICIiLS.
Railroad Owns -, ock In Onr Goal Corpora.
ton and has fsuyinG Agreement, Win
Another. bat Outsiders Find No his.
rPtmina ton No Private Ears on Line.

wv wv wv WV
rVtmination No Private Ears on Line.
PHILADELPHIA. June - While New York
Central officials got no graft stocks, the
railway itself prontcd to the amount Of
81 600 coo by one deal with the Beech Creek
Coal AMI Coke Company.
This was frankly admitted 10 the Inter
state Commerce Commission to-day by
Vice. President +. V. W. Holllster when his
road went under inquiry.
The coal comp any, said Mr.. HOLSTER,
had presented the railroad $500 900 worth
OF free stock In order to get 4 good car
supply n quick transportation Of coal
10 the seaboard. later, through merger.
this stock grew into 81 ,5OO, 600 Of Pennsyl-
vania Coal and Coke Company stocks and
bonds, which cost the New York Central not
a cent.
The railroad also owns the Clarified
Bituminous Coal Corporation which sup plies
it's locomotives with fuel coal. The corpo-
ration is bound by contract not 10 compete
in the commercial markets with the Beech
Creek. but TO turn all its surplus coal over
TO the company. The New York Central
helps these mining concerns now and then
by advancing money when they are hard
up TO open new operations. This the
coal companies pay back in instruments.
Beyond this the New York Central people
made, in comparison with the Pennsylvania
Railroad revelations, a most excellent
showing. There was not an instance Of
individual graft brought out and nc evidence
Of discrimination. One of the great evils
shown against the Pennsylvania, the private
car, could not exist because the New York
Cant ral will nllnw M priyafa CARA
Suspension Of a secret agreement be-
tween the Pennsylvania Railroad and the
New York Central was brought out during
the examination of James Kerr, a Clear
field, Pa. bituminous operator. president
Of the Beech Creek Coal Company and a
director OF the Pennsylvania Coal Com
pany. Mr.. Kerr said that in all his long
experience in the Clearfield soft coal region
he had never known an officer or employee
Of the New York Central to personally
hold coal mine shares,
Mr.. Glasgow asked Mr.. Kerr if he had
ever heard that President Cassatt Of the
Pennsylvania Railroad and Mr.. Galloway,
formerly president of the New York Central,
entered into a secret agreement az to the
development Of the Beech Creek region.
Il don't know of it. l have heard gossip.
I heard Of some understanding about the
use of each others tracks. They had traffic
a~rrangements, and I understand the two
railroads had an agreement as to their future
policy in opening up new operations"
Didn't you hear that no new operations
were to be opened without the consent OF
the other railroad?"
Il can't say that I did
There was always trouble getting sid
ings for new operations?"
Yes"
And didn't you hear that was because of
such an agreement
NO. know that when l wanted to open
up new mines | never ran across any Penn
sylvania Railroad officers
Mr.. Kerr said that the Beech Creek Com
pany has a pier at Fort Liberty, on the
Jersey Central Railroad, for which 1t pays
SIS, 900 a year.
Mr.. Glasgow questioned the witness as
to the relative values of the piers at Har-
sinus and Fort Liberty. The pier at the
former place is leased by the Berwind- White
Coal Company from the Pennsylvania Rail-
road for 81 800 a year. 1t has better facili-
ties than Port Liberty, and when asked
which he would rather nave Mr.. Kerr said
he would prefer the Harsimus pier if he
could get it on the same terms the Berwind-
White people had.
Then" said Mr.. Glasgow, you would
rather have the Harsimus pier at 81, 700
a year than the Port Liberty pier at sls, 900
Mr.. Kerr merely joined the genera
Wce-President Rossiter was the first wit
ness. In consideration of promising TO
give to the Beech Creek Goa and Coke
Company enough coal cars, exclusive of
fuel cars, to carry 900 900 tons of coal a
year. and to also purchase a certain guam
tity of fuel coal at the prevailing price, the
New York Central Railroad got $500, 600
worth of stock Of his company, or about
one-ffth Of the entire capital. As far as |
the evidence produced yesterday showed
ment.
The Beech Creek company prospered
and later was absorbed by the Pennsyl-
vania Coal and Coke Company, and In this
merger the New York Central Railroad
gave up its stock and in return received
$500 900 Of common and $500, 900 Of pre-
ferred stock as well as $500 900 worth Of the
bonds Of the Pennsylvania Coal and Coke
Company.
The witness testified that no dividend
was ever paid upon this stock. However,
interest was paid upon the bonds.
General Manager Smith said the New
York Central allow ed no private cars on
it's lines. "We don't like them" was his
Vice-President Ro sister admitted that
he had, az treasurer Of the company, some
years ago, paid vouchers which might have
been for oil rebates.
Many officers OF the New York Central
were heard, but their testimony was mainly
denial Of discrimination, rebates, DC.
Mr.. Kerr made one point on the Pennsyl-
van!a. He has an interest in the Common
wealth Coal and Coke Company on the
Pennsylvania Railroad.
what do you know about car discrimina-
ton on that lne2" he was asked, sAn I