The Washington times., 1907-01-25
REPORT ON COAL INQUIRY
SUBMITTED TO CONGRESS;
TRADE SECRETS REVEALED
Carrying Companies Holding Interests in Blum
nous Mines Denounced, and Interstate Com
mission Makes Suggestions to Remedy Evils.

companies was given outright without
subterfuge or even pretense or pur-
chase. this system was frequently re-
sorted 10. and the officers and managers
Of the coal companies usually selected
the officers and employees OF the rail-
road whose influence IL was thought de-
sirabie 10 secure. This practice has
grown 20 be a scandal on the Pennsyl-
vania railroad, and no one appearing
before the commission attempted to JUS
tify II. The commission cannot too
strongly express its disapproval Of
these practices"
The report takes note Of the order
issued by the president of the Peunsyl-
Vania after the Philadelphia hearing,
requiring all officers and employees 10
diVssJ themselves OF any interest IN
coal properties along the line.
Aftar discussing the various trafhc
associations IN the eastern bituminous
territory. the report says;
While 10 may appear that the original
purposes OF these associations were not
carried ont as set forth in the bylaws
or agreements, still II was apparent 10
the commission that the associations
were used for the purpose OF agreeing
upon and maintaining freight rates,
and that the distribution OF tonnage
20 the several roads was only main
tanned in so far as the same was accom-
plished by hXlag agreed freight rates.
Commenting on the community Of IN
terest' between the Pennsylvania and
other roads, the commission says:
Since the taking Of evidence IN this
INVESTIGATION the commission has been
ADVISED OF the sale by the Pennsylvania
Railroad Company of iIs stocks Of the
baltimore and Ohio, Chesapeake and
ohio, ana Norfolk and Western.
or part thereof. but who Is
70 become finally the owner OF
advised. This action on the part Of
the Pennsylvania railroad appears 20
the commission as a recognition OF the
public demand that there should not be
stock ownership By one road engaged in
interstate commerce In a substantial
competitor also engaged IN interstate
commerce"
After making an elaborate review OF
the evils OF the present system OF ear
distribution and the unequal and un-
Just methods now employed IN esti-
mating the capacity OF mines, the report
closes with the following recommended
Iious-
First-That carriers be required 20
make public their system Of car distri-
button. showing how the eQuipmeut for
coal service is divided between the sew
eral divisions, and how the same. in
tuieS when the supply OF equipment
does not equal the demand. is divided
among the mining operators.
Second-That "a fair just, and equi-
table rating OF mines be required. ana
. that provision be made for the repre-
sentation Of owners Of mines at the rat
ing thereof
Third-That after reasonable time car
riers engaged IN interstate commerce he
prohibited from using Individual or
private cars for the handling OF coal
traffic
FOurth-That carriers be forbidden az
ter reasonable time 10 own or have any
. interest in any operated coal properties.
except such as are exclusively for their
own fuel supply. and that ownership by
officers or employees OF common car
Tiers OF any coal properties or any Of
the stock or coal companies along the
line Of road by which they are employed
be forbidden.