Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-25
DRASTIC RECOMMENDATIONS.
Every Common Carrier Should be
Required to Make Public Sys-
tenn of Car Distribution.
Should he Forbidden TO Own or Have
Interest in Operated Coal Property
Except for Its Own Use.

commerce commission today transmit
ted TO Congress its first report on It's
investigation ola determinations and
monopoles under the Joint resolution OF
Congress of March z, 1906, known as
the Tillman-Giliespie resolution. The
report deals with bltuminous coal COM
panies 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 involved are the :
Norfolk & Western, Chesapeake g.
Ohio, Baltimore a Ohio. Pennsylvania,
Buffalo, Rochester & Pittsburg. Beach
Creek division of the New York Cen
trail & Hudson River: Pittsburg, Shaw
NUT & Northern, Buffalo & Susquehan-
ma, and West Virginia Central Sc
Pittsburg, (now the Western Mary
land).
The report says all the above COM
panies own directly or by stock own
ership In other companies, large inter
ests In coal lands
The report liz practically a summary
of the Information CLEANED from the in
Vestigation thus far made, together
with the presentation OF facts pertinent
to the general inquiry, and makes rec
concentrations for legislative action as
follows:
RECOMMENDATIONS.
That every common carrier engaged
in interstate transportation of coal be
required to make public the system OF
car distribution IN effect upon its rail-
way and the several divisions thereof.
showing how the equipment for coal
service is divided between the several
divisions Of its road and that the car
rier he require TO publish at stated
periods the system OF car distribution
in effect and the actual distribution
made to each mining operator. That
where the capacity of the mines Is the
basis for the distribution of equipment
a fair. Just and equable rating OF the
mines be required.
That after reasonable time carriers en-
gagged in interstate commerce be pro-
hibited from using individual or
private" cars for the handling of coal
traffic.
OWNING COAL LANDS.
That carriers engaged in Interstate
commerce be forbidden after reason
able time to own or have interest, di-
rectly or Indirectly in any operated
coal property, except such as are ex-
clusively for their own fuel supply,
and that ownership by officers or em-
u
coal properties or stock be forbidden.
A SUMMARY is given showing the
interest OF railroad officials In cor
porations or companies operating
commercial mines or engaged in coal
traffic.
Ownership of stock in coal COM
panies by officers and employees OF the
Pennsylvania railroad. the report says,
has created serious and dangerous
condition on the line of this COM
pany
The policy of permitting officials
and employees OF railroad companies
to hold investments in coal companies
furnishing traffic to the. railroad IS.
in the opinion OF the cimInission, q
mistaken policy and responsible for
favoritisrn. In any event IL subjects
such officials and employees TO critl-
cism and suspicion.
PRESENTS OF STOCK.
Stock in coal companies was given
outright says the report, TO certain
officers and employees OF the Penn
sylvania railroad. Those getting the
stock, says the report usually were
selected from among the officers and
employees OF tho railroad whose infiu-
ence II was thought desirable 10 Sc
cure. This practise has grown to be
scandal on the Pennsylvania rail
road. and no one appearing before the
commission attempted to Justify IT,
The commission cannot too strongly
express It's dlsapproval of these prac-
tises.
The report says 10 officials Of the
Baltimore * Ohio own an aggregate
Of ITS shares OF stock OF coal COM
panies, par value 500. and these
companies have their plants on and
are doing business along the lines Of
the Baltimore a. Ohio. This stock was
acquired in some cases by purchase
and In others by allotment as bonus
with bonds purchased. and in few
instances by gift
Regarding the New York Central a.
Hudson River railroad, 1t IL said that
no ownership by any officer or employee
OF the stock or bonds or coal companies
Ia disclosed, except that certain shares
~ the Beech Creek Coal and Coke COM
pany and OF the Clearfield Bituminous
Coal corporation I'm 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 hold
ings.
The report says Il vas apparent TO the
that the various railway
and freight associations were used for
the purpose OF agreeing upon and main
tanning freight rates. and that the dis
roads WAS only maintained insofar as
the same was accomplished BY fixing
agreed freight rates.
no KEEP UP RATES.
The commission finds in tho Assocint-
ed Railroads Of Virginia ana the Caro-
inas an agreement among the several
parties thereto, no, TO reduce
coal rates withaut consultation.
In the eastern New York and New
England All Bitumlnous Coal Traffic
association, the purpose OF the assncla-
lion, tu zee that the prices OF coal and
freight rates were maintained.
I'm the bureau OF bitumlnous coal
statistics. Buffalo, district, originally
Vailed the Buffalo Coal association, the
purpose seems 20 have been
the maintenance OF rates between the
parties
I'm the Ohio Coal Traffie association
ocated al Columbus, Ohio, an agree
nent appears as 10 rates on all tho
roads although Ia many instances rates
are nSed thereby which should be COM
1etitiyeN