The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-01-26
COMMISSION FINDS THAT RAILROADS
own BLOCKS OF Coal STOCK

employees 10 whom stock in coal com.
panies was given outright, without sub.
terfuge or even pretense OF purchase.
this system was frequently resortad
to. and the officers and managers of
the coal companies usually selected
the officers and employees of the rail.
road whose influence 1t was thought
desirable to secure. This practice has
grown to be scandal on the Pennsyl-
yania railroad, and no one appearing
before the commission attempted to
Justify It. The commission cannot too
strongly express its disapproval of
these practices.
Notice is taken Of an executive or
der issued by the president OF the
PENNSYLVANIA Railroad Company, ON
July 5 last, requiring all officers and
employees to divest themselves Of any
interest, direct or indirect, in stock
of any coal companies or firms.
AS 70 the Baltimore and Ohio rail-
road the report says:
"The evidence shows that ten Off
cials of this company own an aggre-
gate of 7,17S 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 and Ohio. This stock
was acquired in some cases by pur.
chase and in others by allotment as a
bonus with bonds purchased, and in
a few instances by gift. The criticism
applied to practices on the Pennsyl.
vania railroad applies to these prac.
tfces of stock acquisition on the part
of officials of the Baltimore & Ohio.
Regarding the New York Central and
Hudson River railroad. 1t is said that
no ownership by any officer or EN-.
pioye OF the stock or bonds of coal
companies is disclosed, except that
certain shares of the Beech Creek Coal
and Coke Company, OF the clearfield
Bitnminous Coal Corporation, in which
the New York Central has stock inter.
ests, were issued in, the names of Ger.
tain officers of the railroad company
tn quality them as directors of these
coal companies, that they might rep
resent the railroads holdings.
Under the general head of contract
in the form of trust or conspiracy In
restraint of trade ,the report touches
upon the various railway and freight
associations i9stsTitory covered by
the investigation, and says 1t was ap.
parent to the commission that the as.
sociations were used for the purpose
of agreeing upon the maintaining
freight rates, and that the distribu-
ton of tonnage to the several roads
was only. maintained, in so far as the
same was accomplished by fixing
agreed freight rates.. Y g.
Regarding the various associations
the following conclusions are reach.
ed: 'es"'5
1.-THE commission finds in the Asso-
ciatei Railways Of Virginia and the
carolinas an agreement. among the
several railroad parties thereto, not
to reduce coal rates without consulta.
ton, and the Influence is that the CON
sent of the railroad companies repre-.
scented in the association is required.
in the Eastern New York and New.
England All-Rail Bituminous Coal Traf.
fic Association the purpose Of the as.
ISOLATION was to see that the prices of
coal and freight rates were maintain
ed, and IL any railroad company party
to the agreement did not maintain
such prices and rates, they were sub.
ject to such action as the executive
committee might advise.
I'm the Bureau OF Bituminous Coal
Statistics. Buffalo district, originally
called the Buffalo Coal Association,
the principal purpose seems to have
been the maintenance of rates between
the parties.
On the Ohio Coal Traffic Associa-
ton, located at Columbus, Ohio, and
agreement appears as to rates by all
of the roads, although in many IN.
stances rates are liked thereby which
should be competitive. The whole pur.
pose OF the association seems to be the
maintenance of agree rates on coal
traffic"
Under the heading of Monopoly o.
~