The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-25

| the report, usually were selected from
among the officers and employees of the
railroad whose influence it was thought
desirable to secure. This practice has
| grown to be a scandal on the Pennsyl-
vania railroad, and no one appearing
before the commission attempted TO
justify 1t. The commission can not too
| strongly express its disapproval OF
| these practices
The report says ten officials of the
BaItimore & Ohio own an aggregate
| or LIS shares of stock of coal COM
| panies, par value 500, and that these
companies have their plants on and
are doing business along the lines OF
| the Baltimore & Ohio. This stock was
| acquired in some cases by purchase
| and In others by allotment as a bonus
/ with bonds purchased, and in a few
| instances by gift.
Regarding the New York Central &
Hudson River railroad, it is said that
ploye of the stock or bonds of coal
companies Is disclosed, except that
| certain shares of the Beech Creek
Coal & Coke company. of the Clear
which the New York Central has stock
interests, were issued in the names of
certain officers of the railroad COM
pany to qualify them as directors of
those coal companies, that they might
represent the railroad holdings.
The report says it was apparent to
the commission that 1.-The various rail-
way and freight associations were used
for the purpose of agreeing upon and
maintaining freight rates, and that the
distribution of tonnage to the several
roads was only maintained In so far as
the same was accomplished by fixing
agreed freight rates.
The commission finds in the ASso-
ciated Railroad of Virginia and the
Carolinas an agreement among the
several railroads parties thereto not
- <5.,@ -
ton.
I'm the Eastern New York and New
England All-Rail Bituminous Coal
Traffic association. the purpose of the
of coal and freight rates were main
tanned,
I'm the bureau of bituminous coal
statistics, Buffalo district, originally
principal purchase seems to have been
the maintenance of rates between the
parties.
I'm the Ohio Coal Traffic associa-
ton. located at Columbus, Ohio. an
agreement appears as to rates by all
of the. roads, although in many In
stances rates are fixed thereby which
should be competitive.
The associations having failed to ac-
complish the desired purposes. the
Pennsylvania Railroad company de-
termined to buy sufficient of the
stocks of the Chesapeake & ohio,
q
Western railroads, so that acting with
others 1t might control the policy or
these roads. The commission reaches
the conclusion, aside from the question
whether the Pennsylvania railroad
had a majority of the stock Of the 9TH
er railroad companies mentioned, ex-
cept the New York Central, that as
matter of fact the Baltimore & ONO
Chesapeake & Ohio, Norfolk & West
ern and Philadelphia & Reading rail-
roads were practically controlled by
the Pennsylvania and the New York
Centarl & Hudson River railroads,
and that the result was to practically
abolish substantial competition be-
tween the carriers of coal in the ter
ritory under consideration.
The report says the ownership or in
terest in coal, properties or coal trait
fic by carriers or their officers or en-
ployes has, in the opinion of the com
mission, brought about determinations,
injustice and inequalities in the service
to independent operators, and mas pre-
vented many persons VINO desired 10
engage in mining coal from doing so
and that the combinations or contracts
Of the several carriers, members of the
associations mentioned, has had the eff
feet of increasing freight rates and also
the price of coal to the consumers.
The report says it appears that one
of the most fruitful sources of COM
plant by shippers against the carriers,
as far as car distribution and the fur
nishing of facilities is concerned, has
grown out of the want of publicity on
the part of the carriers in their deal
ings with shippers. If the carriers had
conducted their business with shippers
openly and had furnished information
as to car distribution, to which shippers
were entitled, much of the favoritism
according to the report, would have
been averted and wherever unjust sus-
picions were aroused the fact they were
incorrect would have readily appeared.
On the Pennsylvania and Baltimore &
Ohio railroads 1t was almost impossi-
BILE for the shipper to ascertain actual
ly what was the system of car distribu-
ton, and whether it was faithfully car
ried out. The commission announces
that the method of rating mines on
those roads where the capacity of the
mines to produce coal is an element
considered in the distribution of cars
to the several divisions of districts and
each mine therein, has not been carried
out with the care or fairness which
should characterize such responsible and
important duties.
1t is declared that many inequalities
and unjust methods are used in arriv-
ing at the capacity of each mine. 1t is
strenuously claimed on the part of the
Pennsylvania Railroad company, the re-
port says, that the acquisition of the
stocks of the Baltimore & Ohio, the
Chesapeake e. Ohio and the Norfolk &
Western, by the Pennsylvania Railroad
company, was the real cause for the
cessation in rebates, and this claim in
apart seems to be justified.
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