New-York tribune., 1907-01-26
COAL ROADS ATTACKED.
REPORT OF COMBUSTION.
Vonld Prohibit O1onership of Mines
by Carriers.

washington Jan. 25-The Interstate Commerce
o,uission to-day transmitted TO Congress it's first
.Dort on its investigation Into determinations and
,onopolies under the 5oint resolution of Congress
~ March Z. 1906, known the Tillman- Gillespie
-suoutIon. The report deals with bituminous coal
carried east Of the Ohio River and in territory
bounded on the south by the Norfolk & Western
railway on the north by Canada and on the east
nv the Atlantic seaboard. The roads involved are
the Norfolk Western. Chesapeake G. Ohio, Balti-
more & Ohio Pennsylvania. Buffalo. Rochester &.
Pittsburg. Beech Greek division OF the New York
Central G. Hudson River, Pittsburg Shawmut a.
Northern. Buffalo & SusQuehanna and West Vir-
fnia Central & Pittsburg now the Western Mary
lsnd)
The report says that all Of the above companies
eSn. directly or by stock ownership in other COM
panies large interests in coal lands The report is
only partial one, and will be followed by another
after further investigation. 1t is practically sum-
mary OF the information cleaned as a result
OF the investigation thus far made. together
with the presentation OF facts pertinent 20 the
general inquiry. The report concludes with recon-
mendations for legislative action based on the de-
Eeiopments thus far. These Recommendations are:
First-Ihat every common carrier engaged in IN
nibIc he sst eon AZ n OF coaI be required TO make
rs railway and the several divisions thereof show
hg nov me equipment for coal service Is divided
between the several divisions of lis road and how
does non equal fbs %en The supply OF equipment
several mining operations along such road and
4l'"N lNIAAltF De required publish
stated periods and at each divisional headouartere
~ Gos , ~ ne 5 oI road the system OF distribution
minlng operation under such system - -
,b bas or tb ~heTe The capacity Of the Is
ylst ana equitable rating OF the mines be required
OF owners OF the mines at the rating thereof 1''i
5 indIIhSt j aIter reasonable time, carriers en-
@ HSins naiyidnal, l or private cars for the hand
Fouth-Ihat carriers engaged in interstate COM
or have nterast aIter reasonable time, to own
' ea1ed eoai properties except such as are exciu-
ship either direcSp or iS94psy S99py anS that owner
i employees OF common carriers OF any coal proper
b or 9T any OF the stock of coal companies along
s,55 ne 5le OF road by which they are employed. be
A summary is given showing as developed in the
m'esugallon the interest Of. railroad officials in
c"rioralons or companies operating coal mines or
engaged IN coal traffic. Many OF the details OF this
reformation have already been published
one oftioer OF the Chesapeake & Ohio Railway
NoH'pahy' the report says has interest in five
lhoNsind or SIX thousand Of coal lands in
Kentucky, but there is no coal operation on The
land. va ~
ownership Of stock in coal companies by officer.
ana employees of the Pennsylvania Railroad the
report says. has created serious and dangerous
condition the lire OF this COMPANY These Of
hcials and employees OF three classes which the
report enumerates
As to the first class the policy OF permitting Of
Meals and employees OF railroad companies. 10 hold
Hie railroad is. I'm the opinion Of the commission
mistaken policy under present conditions and is
esposlble for faRortism. In any event II subiacts
SIneeIs and employees TO criticism and suspicion
ma the report says the policy should be speedily
changed and the practice Hereunder forbidden
As TO the second class who. Joining with other,
hololng options titles to coal properties &C.
quined interest therein by promoting or alloUin.
r. me use OF their names as promoters the report
says that this system used 10 a large exten,
by persons outside of officers and employees OF the
rpad 10 advance their interest and to enlarge
'he shipments from the coal properties they were
operating' the purpose being 10 secure by OF
N'r lhnuehee OF railroad officials and employees
undue and unjust advantage over other coal com
panies having such Affiliations
a SCANDAL on p r. r."
AS 10 the third class. the officers and employees
TO whom stock in coal companies was given out
Slght. without subterfuge even pretence. Of pnr
chase, me report says this system was frequentl-
resoTted to- and The officers and managers OF IN
coal companies usually selected the officers anC
elnploEes of the railroad whose influence il wa
thought desirable TO secure. This practice ha.
grown 10 be a scandal the Pennsylvania Rail
road, il is said, ana one appearing before tn
commission attempted 10 justify IT, The commits
sion strongly expresses its dsspproval OF thes.
practices.
Notice is taken Of an executive order issued h,
the president of the Pennsylvania Railroad Com
pany on July last requiring all officers and EN-
poyes to divest themselves OF any interest. direc
AS 10 the Baltimore & Ohio Railroad the repor
says
The evidence shows that ten officials Of this com
pany own an aggregate of 7.l76 shares Of stock o
coal companies. par value $780, and lhat thes
companies have their plants on and are doing nus
ness along the lines Of the Baltimore a Ohio Thi
stock was acquired in some cases By purchase an
IN others by allotment as q bonus with bonds pur
chased, and I'm a few instances by gift. The crit
cism applied 10 practices the Pennsylvania Rail
road applies 10 these practices of stock acQusitio
on the part Of officials of the Baltimore & Ohio
Regarding the New York Central q Hudson
River Railroad. IL is said that ownership by an
ofhcer emplOye Of the stock bonds OF cos
companies is disclosed, except that certain share
of the Beech Creek Coal and Coke Companv q
the Clearfeld BituminOus Coal Corporation Il
which the New York Central has stock certificates
were issued in the names OF certain officers OF IN
railroad company qualify them as directors o
those coal companies. that they might represen
the railroads holdings.
Under the general head of contract in the form
OF conspiracy in restraint Of trade the re
associations in the territory covered By the investi
cation. and says IL WIS apparent 10 the commits
sion that 'the associations were used for the pur
pose % agreeing upon and maintaining freigh
rates. and that the distribution OF tonnage 10 IN
several roads was only maintained In so far III