Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-01-26
COMBINE EXISTS
Among Carrying Roads
to Keep Up Price Of Coal
Interstate Commerce Commits.
sion Reports Findings.
Situation Regarded by Commission
Serious and Dangerous.

Commerce Commission today transmit
ted to Congress it's first report on its
investigation on determinations and
of Congress of March Z, 1906, known
as the Tiilman-Gillespie resolution.
The report deals with bituminous coal
carried east of the Ohio river. and into
territory bounded on the south by the
Norfolk & Western Railway, on the
north by Canada ana on the east by
the Atlantic Seaboard. The roads in
volved are the Norfolk & Western,
Chesapeake & Ohio, Baltimore & Ohio,
Pennsylvania, Buffalo, Rochester &
Pittsburg, Beech Creek division of the
New York Central & Hudson River;
Pittsburg, Shawmut and Northern;
Buffalo & Susquehanna and West Vir-
Slnia Central & Pittsburg, (now the
Western Maryland).
The report says that all of the above
"ompanies, own, directly or by stock
ownership in other companies, large in
rests in coal lands.
The report is practically Il summary
4 the information CLEANED as result
: the investigation thus far made to-
2 Their with the presentation of facts
"rtlnent to the general inquiry. The
port concludes with these recoMmen-
cations for legislative action:
First That every common carrier
gagged in interstate transportation of
al he required to make public the
stem of car distribution in effect up
"A Its railway and the several divisions
ter9of, showing how the equipment
r coal service is divided between the
"Veral divisions Of its road and no ~
he same in times when the supply OF
'!uipmont does not equal the demand
divided among the several mining
perations along such road and that
ne carrier further be required to pun-
'sh at stated periods and at each Ill
isional headquarters upon its line of
Dad the system of car distribution in
feet and the actual distribution made
each mining operation under such
ystem.
"Second-that where capacity Of the
mines is the basis for the distribution OF
equipment, a fair, Just and equitab BILE rat
ing of the mines be required. and than
provision be made for the representations
IF owners of the mines at the rating
hereof.
"Thrd-that after reasonable time, car
"iers engaged in interstate commerce be
prohibited from using individual or 'pri-
ate cars for the handling of coal traf-
&c.
"Fourth-that carriers engaged in in
erstate commerce be forbidden afte..
reasonable time to own or to have inter
st, directly or indirectly, in operated
coal properties, except such as are ex-
''usiVcly for their own fuel supply. and
- ownership either directly or indi-
rectly, by officers or employees of COM
mon carriers of any coal properties o.
ny OF the stock Of coal companies along
he line of road by which they are en-
n'oyod, be forbidGcn.'
\ summary is given showing, it was
Developed during the investigation, the
interest of railroad officials of corpora
tons or companies operating coal mines
or engaged il coal affic. The details
If this Information have largely been
published.
The report says that a SERIOUS and
ianecro~s condition has been created
ilon2 tho line Of the PENNSYLVANIA Rail-
DAD by reason Of these practices. which
no one appearing before the commits
in attempted t. justify"
Notice is taken of an executive order
issued by the president of the Pcnnsyl-
vania Railroad Co. on July q last. re-
curing all officers and employees to di-
vest themselves OF any interest, direct
or indirect. in stock OF any coal COM
panics or firms
As II the Baltimore & Ohio Railroad
TIE report says: THE evidence shows
that 10 officials Of this company own an
aggregate Of IT'S shares of stock OF coal
companies. pay value 500. and that these
companies have their plants on and are
doing business along the lines of the
Baltimore & Ohio
Under the general head of contract in
the form of trust or conspiracy in re-
straint Of trade. The report touches upon
the various railway and freight associa-
tons in the territory covered by the in
vcstigation and says it was apparent to
the commission that "thc associations
were used for the purpose Of agreeing
t1oon ard maintaining freight rates. and
that the distribution of tonnage to tho
several roads was only maintained insc-
far as the same was accomplished ty fix
ing agreed freight rates.
Regarding the various associations.
these conclusions are reached:
In the Eastern New York and New
England All Rail Biturlinous Coal
Traffic Association. the purpose of the
was to see that the prices
IF coal and freight rates We're MAIN
aimed, and if any railrod compny par
% the agreement did not maintain
such prices and lates. they were sug-
yested to take such action as the eX-
,cutive committee might advise"
Under the healing of monopoly of
any part of the trade or commerce i'll
coal or traffic therein" evidence con-
,erning the community of interest"
between the Pennsylvania, Baltimore II
Ohio. Norfolk &c Western. Chesapeake
& Ohio, New York Central and Phila-
ielphia 4 Reading Railways is con-
sidcred. The report continues:
The associations have failed to ac-
,omplis,l the desired purposes the
Railroad Co, determined