Los Angeles herald., 1907-01-26
COMMISSION FLAYS
RAILROAD ABUSES
DISCL0SES SCANDALS ON
MANY LINES
Scores Ownership by Common Car
riers by Coal Companies Along
Roads-shows How Favor
ltism Results
BY Associated Press.

WASHINGTON, Jan. 25.-The inter-
state commerce commission today
transmitted to congress it's first report
on its investigation on determinations
and monopoies under the joint reso-
luton of congress Of March Z, 1905,
known as the Tillman- Gillespie reso-
luton.
The report deals with bituminous
coal companies east of the Ohio and
in territory bounded on the south by
the Norfolk & Western railway, on the
north by Canada and on the east by
the Atlantic seaboard The roads in
volved are the Norfolk & Western,
Chesapeake & Ohio, Baltimore & Ohio,
Pennsylvania, Buffalo. Rochester e.
Plttsburg, Beech Creek division of the
New York Central & Hudson River,
Pittsburg, Shawmut & Northern, Buff
falo & Susquehanna and West Virginia
Central and Pittsburg (now the West
ern Maryland).
The report says all the above COM
panies own, directly or by stock own
ership in other companies, large inter-
est in coal lands.
The report is practically a summary
of the information CLEANED from the
investigation thus far made, together
with the presentation of facts peril
nent TO the general inquiry, and makes
recommendation for Legislative action
as follows
That every common carrier engaged
in interstate transportation of coal be
required to make public the system
of car distribution in effect upon its
railway and the several divisions there
of, showing how the equipment for
coal service is divided between the
several divisions of it's road and that
the carrier be required to publish at
stated periods the system of car dis
tribution in effect and the actual dis
tribution made to each mining oper-
ator. That where the capacity of the
mines is the basis of distribution of
equipment fair, just and equable
rating of the mines be required.
That after reasonable time carriers
engaged in interstate commerce be pro-
.hibited from using "individuar or
"private" cars for the handling of coal
traffic.
That carriers engaged in interstate
commerce be forbidden after reason
able time to own or have interest
directly or indirectly in any operated
coal property, except such as are used
exclusively for their own fuel supplies,
and that ownership by officers or en-
ployes of common carriers of any coal
properties or stock be forbidden.
A summary is given showing the in
terest of railroad officials in corpora
tions or companies operating coal mines
or engaged in coal traffic.
Ownership of stock in coal companies
by officers and employees of the Pennsyl-
Vania railroad, the report says, has
created serious and dangerous con-
dition on the lines of this company
The policy of permitting officials and
employees of railroad companies to hold
investments in coal companies furnish
ing traffic to the railroad is, in the
opinion of the commission, a mistaken
policy and responsible for favoritism
In any event it subjects such officials
and employees to criticism and sus-
picion.
Stock in coal companies was given
outright, says the report, to certain Of
ficers and employees of the Pennsyl-
vania railroad Those getting the stock,
says the report, usually We're selected
from among the officers and employees
of the railroad whose influence it was
thought desirable to secure. This prac-
tice has grown to be q scandal on the
Pennsylvania railroad and no one ap-
pearing before the commission at
tempted to justify it. The commission
cannot too strongly express it's disap-
piONct VI lllcSc pIdCllCeS.
The report says ten officials of the
Baltimore & Ohio own an aggregate Of
711S shares of stock of coal companies
par value $100, and these companies
have their plants on and are doing
business along the lines of the Balti-
more & Ohio. This stock was acquired
in some cases by purchase and in others
by allotment as a bonus with bonds
purchased, and in few instances by
gift.
Regarding the New York Central &
Hudson River railroad, it is said that
no ownership by any officer or employe
of the stock or bonds of coal companies
is disclosed, except that certain shares
of the Beech Creek Coal and Coke COM
pany and of the Clearfield Bituminous
Coal corporation, in which the New
York Central has stocks, were issued
in the names of certain officers of the
railroad company to. qualify them as
directors of those coal companies that
they might represent the railroad S
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 these several
roads was only maintained in so far as
the same was accomplished by fixing
agreed freg,-t rates.
The committee finds in the associ-
ated railways of Virginia and the Caro-
linas an agreement among several rail-
ways, parties thereto in order to re-
duce coal rates without consultation.
In the Eastern New York and New
England all bituminous coal traffic as
sociation, the purpose was to see that
the prices Of coal and freight rates
were maintained.
In the bureau Of bituminous coal sta
tistics, Buffalo district, originally called
the Buffalo Coal association the prin-
cipal purpose seems to have been the
maintenance of rates between the par
ties.
I'm the Ohio Coal Traffic association,
located at Columbus, Ohio, an agree
ment appears as to rates on all the
roads. although in many instances rates
are fixed thereby which should be COM
petitiYe."
KINGSTON REFUGEES FACE
CIITIIpE MIITu HnIIDAHE