Daily Kennebec journal., 1906-02-12
BAER AMUSED
At the Action Of the
Pennsylvania House
In Ordering Prosecution Of Rail-
roads Violating Law
In Carrying Coal and Issues Sta.emea
Oh His Roads Methods.

| reads II, upon inquiry, he finds they are
violating the constitution of the state.
The resolution which will come before
| tie state Soma to tomorrow night for
action, quotes from Article XVII of the
| PENNSYLVANIA constitution which says:
| NO Incorporated company doing the
| business Of common carrier shall di
| rcctiy or Indirectly, prosecute or en-
gage IN mining or manufacturing arti-
c.es iof transportation over It's works. y
The resolution names the PcnnsylVa-
mia Railroad, the Philadelphia & Read
ing Railway ana the Delaware, Lacka-
| wanna x Western Railroad.
President Hacr's statement is as fol-
| lows:
Nj attention has been called to the
possibility that there are a great many
good people in the country who may
| take the actions of the Pennsylvania
| House seriously 50 that. therefore.
| some statement Of the facts should be
| Made.
| First as to the right of the Reading
Co. to own the stock of coal companies:
Tho Legislature seems to be the only
law officers and lawmakers of the state
VINO are ignorant of the privisions of
the constitution Of 1919. All the corpor-
| atioils referred to obtained their rights
and franchises under charters granted
prior 10 the adoption of the new consti
| tuIi.n. The trainers of the constitution
| well knew that these We're vested
| rights fully protected by The law of the
| land and 10 prevent any misapprchen-
| Slun the new constitution explicitly de-
| Ciarc&, and all tights, actions. prose-
cuiions aid contracts shall continue ;is
| if this; constitution had not been adopt
ell and TO still further set forth their
! meaning it declares that all existing
charters Or grants of special or eXclu-
| siNe privileges under which Il bona tide
| Organization shall not have taken place
! and business been commenced in SOod
| faith at the time of the adoption Of
| constitution, shall thereafter have no
| validity
'iEo Supren" court Of the state has
several times passed upon the effect cf
the new constitution repeating vested
rights ana franchises and have uni-
formly held that these constitutional
limitations did not apply to corpora
tions existing prior to TIE passage Of
the Constitution.
"Eut al this can safely be left to the
report OF the attorney general. The
reign of law has no ceased in Pcnnsyl
van:a and investors in Pennsylvania
securities need not 10 alarmed at the
| Yagarics Of the LEGISLATURE.
"s'crun,:. the resolution AYERS: IT is
alleged that the price Of anthracite
coal hos been raised since the last an
! thracitc coal strike $1 to $l.Z5 per ton,
yet the so-called operators are refus
1 n ., al 1a nf
in wages. thus another strike is threat
cncd.' This is III form a cowardly state
| mcnt. the falsity Of which the public
should know.
Prior to 1Go0 TIE wages rs paid by
the Philadelphia & Reading Coal and
Iron 90. were fixed by n sliding scale.
| liz 1900 under the leadership Of The
! I-nitod Mine Workers Association, the
labor troubles began. 1t is Just. there
| FORE to compare prices ana costs in
| 1889 with present costs and prices. The
| average price per ton received by the
| coal and iron company for its coal at
! the mines i'll 1Saa was Si112. the aver
| age price per ton received in 1863 was
$2.4i9 This shows an increase Of 60 G-1J
cents per ton III seven years.
"1'hc increase in the cost Of mining
| coal was G.: $40 cents per ton, which
| WAS made up as follows: >" + Labor.
| 81 10 cents; materials, II Clio cents or
| 1t total Of 6? $40 cents, leaving to the
| coal company an Increase of only
| 10 3-l1 cents per ton in the last seven
| years.
| in point of fat. Notwithstanding
| this Increase Of 10 3-10 cents per ton,
| II tn. Coal and Iron Go. had charged
| the usual average royalty Of 50 cents
| FER ton for coal mined from its oWn
mines, the operations Of the company
would have resulted in Il loss.
by reference to the annual report
OF tbs Coal ana Iron Go. for the year
1899 it will be found that the surplus
for tnat year was only s422 02S.30. In
ti'c l'rcNious year there was i deficit
of S53,3.4.5i
"But. SOMEONE will ask, why is it
| that the Reading system is now max
| money and its stock advancing? Does
il not make up in the transportation
! of anthracite. what it loses in mining
| coal: Here. again, tn" facts will bc
iull answer I" the suggestions:
Tile transportation Of anthracite
coal Is rot the important factor in the
| Increased revenue Of the Reading syS-
TN. As far back as 1877, the anthra-
cite trailic was 61.60 per cent of the to-
| tai freight and passenger traffic re-
ceiptS OF the Phladelnhia & Reading
tG. Now the receipts from miscellane-
Gus traffic, which does not include bi-
luminous coal nor passenger traffic,
| exceed the receipts from anthracite
coal tratilc and the proportion of an
thracitc traffic has diminished to 33.3J
per cent. Today the passenger receipts
alone are equal to onc-half the traffic |
receipts on anthracite coal. The in |
erased prosperity of the Reading sys-
'ein is due to ;hc increase Of miscella- |
neous traffic. passenger traffic and BIZ |
luminous ccal traffic.
In point of fact there has been a !
very srlal increase in traffic receipts |
from anthracite coal and no Increase !
~ 1@irS 'her,.rr. TFc 1E'crag" ro"ciDts I;
iroi.i tta!i!c on anthracite coz! 90" the
l''t 'Ne y..1rs have been Stf.b3! va.