New-York tribune., 1907-12-18
FOR HOLDING COMPANY.
TO TAKE COAL LANDS.
Western Maryland Viii Probably
Tru That Rate Lac Solution.

The directors of the Western Maryland one OF
the Gould roads. held meeting yesterday in fhlS
city, at which it was practically decided ua,' ii
view of the requirements Of the railroad rate ia"'
which prohibits a railroad engaged in inter ls'"
commerce from owning or operating coal ana OF !,
properties d holding company should De loIlieu
10 take over the companys coal lahus-
E F. Bush president of the Western Maryland
said after the meeting that the ROAD "ouiu pio'
ably follow the example OF the Buffalo, RochesueI
& Pittsburg Railroad Company in organizing d
separate company 10 take over Its coai Janus as
far as possible. He explained that huiiioef U.
the properties pledged Under the pohuS VI
the railroad company, and that they could not
therefore be turned over to holding concern, out
it was believed that this difficulty could be over
come by turning the equity IN those coihpaieS
TO the latter company. stockholders to exchange
their stock pro rata for the stock OF the hoioihs
company
Mr. Bush was also authority for the statement
that the other Gould lines in the West had pracu-
cally decided to follow the Same plan IL was
pointed out that this plan was really an evasion OF
the law, but it said that there was nothing
else left for the coal roads 10 DO unless IL WAS ~
go out of business entirely.
All the coal lands owned by the Gould lines pre-
duce soft coal only. Those owned by the western
Maryland valued at s15,eo0,G00 and the coal
lands of all the other Gould lines at s5oo0o'0oo
Most Of these properties are held by the wabash
and tie Missouri Pacific The former owns the
Pittsburg Terminal Railroad and Coal Company
and the latter the Western Coal and Mining Com
pany and several smaller properties.
Winslow S. Pierce, former president OF the west
Maryland and now counsel for the principal
Gould lines. among those present at the meet
ing yesterday.
Attorneys of the coal carrying railroads have oeen
in consultation recently with the object of finding
a practicable solution of the problem presented In
the requirements Of the railroad rate law that
after May next. railroads shall not transport as
interstate commerce any commodity, except timber
or its manufactured products manufactured, mined
or produced by it or under its authority or which
il may own in whole in part or in which 1t may
have any interest, direct indirect. except such
articles or commodities may be necessary or in
tended for its in the conduct of its business as
a common carrier
The penalty violation of this provision of tho
law a fine of s5.o0o for each shipment Roads all
over the country affected by the law but II
will be chiefly felt by the railroads of the anthra-
cite coal region most Of which own extensive coal
properties. An objection which seems to the at
torneys of these roads insuperabe to the sug-
gested plan of the companies directly divesting
themselves of the ownership of their coal prop
critics, by either sale segregation, is the fact
that as a rule these properties are part of the
security underlying the bonds of the railroad COM
panies Doubt has been expressed as 10 the con-
stutionality of the law, and ii is said that re-
quest NAV be made that the Interstate Commerce
Commission be instructed TO bring the question be-
fore the Supreme Court OF the United States. the
enforcement of the penalty TO be suspended mean
while meeting of the presidents Of the anthra-
cite roads is to be held 10 decide upon the ac-
ton to be taken