The Washington times., 1906-06-05
OWNS BIG BLOCKS
OF COAL STOCKS
New York Central's Hold
ingS Mount Into Millions.
ACQUIRED WITHOUT RETURN
Given the Company, Vice President
Rossiter Testifes, "For Traffic
Reasons"

PHILADELPHIA, June 5.-The Inter
state Commerce Commissions probe
was thrust deep today into the New
York Central railroads interest in Penn
sylvania soft coal properties.
Commissioners Clements and Cockrell,
with the assistance of Special Counsel
William B. Whitney, of New York,
learned from officials of that company
mach concerning its interest in coal
mining companies.
L. V. W. ROssiter, a vice president OF
the New York Central, and head Of its
finance department. was the first wit
ness called.
He admitted right away that in addi-
tion TO being vice president and a direc-
tor OF the New York Central. he was
director of one or two coal companies in
Pennsylvania.
Are you a director of the Beach
Creek Coal and Coke Company?'' asked
Mr. Whitney
Director, But Not Stakeholder.
After conference with counsel NIr
Rossiter admitted he was and under
further questioning stated that he held
no stock in the company though shares
stood IN his name to qualify him as a
director.
Does the New York Central own
shares In the company was asked
Inc central owns 5000 shares in the
Beach Creek Company" answered Mr.
Aosslter. Il will make an explanation
ne Beach Creek Company was merged
IN tSJI with the Pennsylvania Coal and
CoKe company, though for traffic
reasons the identity Of the Beach CreeiI
company was preserved
w nat interest does the NpW Xorl-
central own IN the PENNSYLVANIA Coal
and Coke Company
The Central owns 5000 shares Of
common Stock, 1900 shares of preferred
stock. and SS00.OO worth of 3 per cent
ponds OF the Pennsylvania Coal and
Coke Company"
Asked If the New York Central had
ever paid for its interest in the company
except by turning in its Beach Creek
stocks at the time OF the merger. Mr..
RoSSlIer replied in the negative.
What IS the value of the Central's
holdings IN Snc Pennsylvania Coal and
Coke Company?' asked Mr.. Whitney.
Got Stock "for Traffic Reasons"
From slOOOO00O to Sl2.OO0O0O." answer
ed the witness.
Why was this interest given 20 the
New York Central practically without
consideration" was asked.
For traffic reasons" answered Mr..
Rossiter.
When pressed for an interpretation
Of the phrase, For traffic reasons. %
witness said his Jurisdiction did not
extend to traffic matters and he was
not prepared to explain this matter
He said the acquisition Of the stock
was provided for in the contract be-
tween the Central and the coal com
pany. Asked for this agreement, wit
ness said he did not have II, but a
New York Central lawyer present
handed over copy. The contract was
read by Mr.. Whitney. 1t provided that
for mutual considerations of 81 paid
by each party the Central should car
~ 100000 tons OF coal d year for the
Pennsylvania Coal and Coke Company
at rates equal to rates by other roads
on competing coal. and should furnish
cars regularly for such amount. The
Central was 70 receive the securities
in the company. and was to purchase
from the coal company 100000 tons Of
fuel coal each year.
Owned Mines for Fuel Supplies.
Mr.. Rossiter admitted that for twen-
" years the New York Central had
owned the Clearfield BituminOus Coal
and Coke Company. which, in turn owns
the West Branch Coal Company and
other properties. This is owned chiefly
for fuel supply purposes. he said
The Central also acquired the Nor
ris Run Coal Company when II DUR
chased the control Of the old Syracuse
Geneva and Corning raih DAD but this
coal property. ne SAID, mad been dis
posed Of
witness said that the Central controls
the Lake Shore and Michigan Southern
railroad. and that he is a vice president
of fhe Lake Shore. but said he wa un-
familiar with the Lake Shores coal
holdings He knew that the road was
interested in coal lands. and owned large
shares in the PittSbUrg and Lake Erie
and Lake Erie, Alliance and Wheeling
Railroad Company which operate large
properties.
No Rule Against Employees.
Mr.. Rossiter denied that he was per
-onally interested in any coal mines or
aljed industries on the lines OF the New
York Central
"Are any New York Central employees
so interested?"
mot that know Of he answered.
rs there q rule against it2'' was
asked
There Is no express rule" he an
Swered, but I believe Il is tacitly under
stood that no New York Central men