Omaha daily bee., 1907-01-26
co MBINATION is FOUND
0Ommsrcs Commission Reports Its Finding
and Recommendation to Congress-
RAILROADS AND COAL MINES INVOLVED
Report Recommends Publicity Rs Care
for Some Evils and Enforce
ment of Equitable
Rates for Fuel.


March Z, 1906 known as the Tillman-
Gillespie resolution. The report deals with
bituminous coal carried east of the Ohio
river, and In territory bounded on the south
by the Norfolk q Western railway, on the
north by Canada, and on the east by the
Atlantic seaboard The roads involved are
the Norfolk & Western, Chesapeake &
Ohio, Baltimore & Ohio. Pennsylvania,
Buffalo, Rochester & Pittsburg: Beech
Greek division Of the New York Central
& Hudson River. Pittsburg, Shawmut and
Northern, Buffalo & Susquehanna, and
West virginia Central q Pittsburg (now
the western Maryland)
The report says all the above companies
own, directly or by stock ownership in
other companies. large interests in coal
lands.
Laws Recommended.
The report Is practically a summary of
the information CLEANED from the investi-
cation thus far made together with the
presentation OF facts pertinent to the gen
eral inquiry, and makes recommendations
for legislative action, as follows:
That every common carrier engaged in
interstate Transportation OF coai De re
the several divisions thereof. showing how
the equipment for coal service Is divided
between the several divisions of its road
and that the carrier be required to publish
at stated periods the system of car dis
! tribution made to such mining operation.
That where the capacity Of the mines Is
the basis for the distribution OF equipment,
a fair, Just and equitable rating OF the
mines be required
That after reasonable time carriers en-
gagged In interstate commerce be prohibited
| from using Individual" private cars
| for the handling Of coal traffic.
That carriers engaged In interstate com
/ he forbf1den aft raQaOnahla time
| 10 own or have interest. directly or ind-
| rectly. In any operated coal properties, ex-
fuel supply and that ownership by officers
4 or employees Of common carriers OF any
coal properties or stock be forbidden.
Employees interested I'm Mines.
! A summary Is given showing the interest
or railroad officials in corporations or COM
panies 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
a serious and dangerous condition ON the
| line Of this company.
The policy OF permitting officials and
employees of railroad companies TO hold in
vestments in coal companies furnishing
J traffic to the railroad is, in the opinion Of
| the commission, a mistaken policy and
responsible for favoritism. In any event,
| II subjects such officers and employees to
criticism and suspicion.
! Stock in coal companies was given out
right. says the report to certain officers
! and employees of the Pennsylvania road.
| Those getting the stock, says the report,
usually were selected from among the Of
hcers and employees Of the railroad, whose
| influence II was thought desirable to secure.
This practice has grown to be a scandal
on the Pennsylvania railroad and no one
appearing before the committee attempting
! to Justify it, The commission cannot too
| strongly express disapproval of these prac-
/ tees
The report says ten officials OF the Balti-
more & Ohio own an aggregate OF 7lS
shares of stock of coal companies 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 pur-
chase and in others by allotment, as bonus
with bonds purchased, and in few in
stances by gift. q.
Agreement on Rates.
Regarding the New York Central 6
Hudson River railroad, II is said that nc
ownership by any officer or employee of the
stock or bonds of coal companies is dis
closed, except that certain shares OF tho
Beech Creek Coal and Coke company. 81
the Clearfield Bituminous Coal corporation
I'm which the New York Central has steel
interests, were issued in the names of GER
tain officers of the railroad company Il
qualify them as directors of those Goa
companies that they might represent th'
railroad holdings.
The report says it was apparent to thu
commission that:
Ths sroS We're ra nssS fu @d h res papos
, freight rates and that the distribution o
tanned insofar as the same was accom-
plished by fixing agreed freight rates
The commission lnds in >the Associates
| Railways of Virginia and the Carolinas al
agreement among the several railroad
parties thereto not to reduce coal rate
"i In the eastern New York and New Eng
ISOLATION. the purpose Of the. association
was to see that the prices OF coal an
freight rates were maintained.
In the bureau of bituminous coal stats
tics Buffalo district; , 93riSinany called o, tn
purpose seems 70 have been the main
tenanee Of rates between the parties.
IN the Ohio coal traffic assOciat ten, locate
at Columbus, o., an agreement appears a
to rates by all Of the roads. although 4
many instances rates are hxed thereby
which should be competitive.
Merger Follows Future.
The associations having failed to &C
complish the desired purposes, the Pennsyl
Vania Railroad company determined TO bu
sufioent OF the stocks of the Chesapeak
a Ohio, Baltimore e. Ohio and Norfolk
Western railroads, so that, acting wit
others. it might control the policy Of thes
roads. The commission reaches the cor
cusion, aside from the question whethe
the Pennsylvania railroad had a maiorit
OF the stock of the other railroad com
pantes mentioned, except the New Yor
| Central, that, as a matter OF fact, IN
| Baltimore a. Ohio, Chesapeake & Ohi6
| Norfolk & Western and Philadelphia .
i | Reading railroads were practically cor
I trolled by the Pennsylvania and the Me-
n York Central and Hudson River railroads
and that the result was TO practically abo
4 ish substantial competition between IN
carriers Of coal In the territory under cor
: sideration.
D The report says the ownership OF interes
n In coal properties or coal trRffic by cal
riers or their officers or employees has,
the opinion of the commission, brougl
: about Determinations, injustice and II
equalities In the service 10 Independer
operators, and has prevented many pei
sons who desired to engage In mining co,
from doing so. and that the combination
or contracts Of the several carriers. men
bers OF the associations mentioned, hs
had the effect Of increasing freight rat,