Milford chronicle., 1906-02-16
BAER FLAYS
LAW MAKERS
President of Reading Ridicules Pro
posed Investigation OfCOal Roads.
NO PROFIT IN HIGH COAL PRICES

Rat
'ote Philadelphia. Pa, Feb. 12.-Georgt
ts Ri Baer, president of the Reading
fnohilway company, gave out a state
"a Aent concerning the companys atti
= tude toward ting 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
My attention has been called to the pos
sibility that there are a great many peo-
pie in the country who may take the
action of the Pennsylvania legislature
seriously and that, therefore, some state
ment of the facts should be made
First-As to the risht Of the Reading
company to own stock of coal companies:
The legislature seems to be the only law
officers and law makers of the state who
are ignorant of the provisions of the con-
stitution of 1873. All the corporations re-
ferred to obtained their rights and fran
chises under charters granted prior to 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 misapprehension the new
constitution explicitly declares in article
Is, section 2; And all rights actions
prosecutions and contracts shall continue
as if this constitution had not been adopt
ed" and to still further set forth their
meaning they declare in article 16 that
IAN existing charters or grants of spe-
cial or exclusive privileges under which
bona fide organization shall not have
taken place and business been commenced |
? in good faith at the time of the adoption |
Of this constitution, shall thereafter have |
no validity"
The supreme court Of the state has sew
eral times passed upon the effect of the /
new constitution in repeating vested |
rights and franchises, and have uniform
ly held that these constitutional limita-
tions did not apply to corporations exist
ing prior to the passage Of the new con-
stitution.
But all this can safely be left to the
report of the attorney general. The reign
of law has not ceased in Pennsylvania and
investors in Pennsylvania securities need
not be alarmed at the vagaries of the
legislature.
Second-The resolution AYERS: ''It is al
legged that the price of anthracite coal has
been raised since the last anthracite coal
strike 81 to S1.25 per ton, yet the so-called
operators are refusing to allow the min
ers an increase in wages thus another
strike is threatened" This is in form a
cowardly statement, the falsity Of which
the public should know.
Prior to 1900 the wages as paid by the
Philadelphia & Reading Coal & Iron COM
pany were fixes a sliding scale. In 1900
under the Lead of the United Mine
Workers of An. the labor troubles
began. II is jus refOre, to compare
prices and'eosts with present costs
md prices:
The average price, per ton, received by
The coal and iron company for its coal s
Vt the mines in 1899 was S1.73: the aver =
lge price, per ton, received in 1905 was
2. 44s. This shows an increase of 70 6-10
,ents per ton in seven years. c
The increase in the cost of mining coal =
vas 63 $40 cents per ton, which was made
lp as follows: Labor cost per ton, 1899,
i.O67; labor cost per ton, 1905, S1.5S4 The a
ost of materials increased from 81 4-10 n
ents in 1889 to 43 cents in 1906 In other =
yords, the increased cost of production
yas: Labor 81 7-1O cents; materials. II 6-10 d
ents, or a total of SO $40 cents, leaving
he coal company an increase of only n
$40 cents per ton in the last seven
ears.
In point of fact notwithstanding this s.
lcrease Of 10 3-1O cents per ton. if the n
pal and iron company had charged the !,
sual average royalty of 30 cents per ton u
" coal mined from its own mines, the a.
oerations of the company would have b1
suited in loss. =,
BY reference to the annual report OF the ~
pal & Iron company for the year 1899 m
will be found that the surplus for that d.
,ar was only 1923, 03S.9O. In the previous
ical year there was a deficit of $751;
l.54.
These are the facts, and II any commit ~
e of the legislature awnts to verify their
curacy, the books of the company are
en for inspection.