Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-25
RAISED PRICE OF COAL
Effect of Action of the Great
Railways.
FREIGHT RATES INCREASED
Discrimination, Injustice and In
equalities.
FREIGHT RATES INCREASED
THE RESULT OF INVESTIGATION
Report of the Interstate Commerce
Commission on an Inquiry Into
Ownership of Coal Lands.

day transmitted to Congress its first report
on its investigation on determinations and
monopolies under the joint resolution of
Congress of March Z, 1906, known as the
Tillman-G Gillespie resolution. The report
deals with bituminous coal carried east of
the Ohio river, and in territory bounded on
the south by the Norfolk and Western rail-
way. on the north by Canada and on the
east by the Atlantic seaboard. The roads
involved are the Norfolk and Western,
Chesapeake and Ohio, Baltimore and Ohio,
Pennsylvania: Buffalo, Rochester and Pitts
burg. Beech Creek division of the New York
Central and Hudson River; Pittsburg.
Shawmut and Northern, Buffalo and Sus-
quehanha railroad and West Virginia Cen
trail and Pittsburg now the Western Mary
land railroadD.
The report says that all of the above
companies own. directly or by stock over
ship in other companies, large interests in
coal lands.
The report is only partial one and will
be followed by another after further inveS-
tigation. 1t is practically a summary of
the information CLEANED result of the
investigation thus far made, together with
the presentation of facts pertinent to the
general inquiry. The report closes with
recommendations for legislative action
based on the developments thus far. These
recommendations are:
Some Recommendations.
First That every common carrier en-
gagged in interstate transportation Of coal
be required to make public the system of
car distribution in effect upon it's railway
and the several divisions thereof. showing
how the equipment for coal service is d.
vided between the several divisions of its
road and how the same in times when the
supply of equipment does not equal the de-
mand Is divided among the several mining
operations along such road, and that the
carrier further be required to publish at
stated periods and at each divisional head
quarters upon its line of road the system
of car distribution In effect and the actual
distribution made to each mining opera
ton under such system.
Second That where the capacity of the
mines is the basis for the distribution Of
equipment fair, just and equitable rating
of the mines be required and that pro-
vision be made for the representation of
owners of the mines at the rating thereof.
eThird. That after reasonable time car
riers engaged in interstate commerce be
prohibited from using individual or 'pri-
vate' cars for the handling of coal traf
fic.
Fourth. That carriers engaged in in
terstate commerce be forbidden after rea-
sonable time to own or have any interest,
directly or indirectly. in any operated coal
properties. except such as are exclusively
for their own fuel supply, and that own
ership, either directly or indirectly, by Off
GERS employees of common carriers of
any coal properties or any of the stock
of coal companies along the line of road
by which they are employed be forbid
den."
A Mistaken Policy.
A summary is given showing, as devel-
oped during the investigation. the interest
of railroad officials in corporations or COM
panies operating coal mines or engaged in
I'll, -;
largely have already been published
One officer of the Chesapeake and Ohio
Railway Company, the report says has an
interest in 5000 or 5000 acres Of coal lands
in Kentucky, but there is no coal operation
on the land.
Ownership of stock in coal companies by
officers and employees of the Pennsylvania
railroad, the report says, has created a
serious and dangerous condition on the line
of this company. These officials and en-
ployes are of three classes, which the re-
port enumerates
AS to the first class, the policy of per-
hitting officials and employees of railroad
companies to hold investments in coal COM
pan:es furnishing traffic to the railroad Is
in the opinion of the commission, a mis-
taken policy under present conditions and
is responsible for favoritism. In any event.
1t subjects such officers and employees to
critics and suspicion, and the report says
the policy should be speedily changed and
the practices hereunder forbidden
As TO the second class, who. Joining with
others holding option ON or titles to coal
properties acquired interest therein by pro-
noting allowing the use of their names
as promoters. the report says this system
was used to large extent by persons out
side of officers and employees of the road
to advance their own interest and to en-
large the shipments from the coal proper
ties they were operating. the purpose being
to secure by means of the influence of
railroad officials and employees undue and
unjust advantage other coal comma
MES having no such affiliations.
Stock Given Outright
AS to the third class the officers and en-
ployes to whom stock in coal companies
was given outright without subterfuge or
even pretense of purchase, this system was
frequently resorted to and the officers and
managers of the coal companies usually Sc
lected officers and employees of the railroad
whose influence 1t was thought desirable to
secure. This practice has grown to be
scandal on the Pennsylvania railroad, and
no one appearing before the commission at
tempted to justify 1t. The commission can
not too strongly express its disapproval of
these practices.
Notice Is taken of an executive order is
sued by the president of the Pennsylva-
MIA Railroad Company on July last, re-
Quiring all officers and employees to divest
themselves of any interest, direct or in
direct. in stock Of any coal companies or
firms.
AS to the Baltimore and Ohio railroad the
report says:
THE evidence shows that ten officials of
this company own an aggregate of ITS
shares of stock of coal companies, par
value 500. and that these companies have
their plants on and doing business
along the lines of the Baltimore and Ohio
This stock was acquired in some cases by
purchase and in others by allotment as
bonus with bonds purchased and In a few,
instances by gift The criticism applied to
practices on the Pennsylvania railroad ap-
plies to these practices of stock acquisition
| on the part of official~ of the Baltimore
and Ohio"
Regarding the New York Central and Hud-
son River railroad, 1t Is said that no owner
ship by any officer or employee of the stock
or bonds of coal companies Is disclosed, ex-