The Washington herald., 1907-01-26


Commission, transmitted 10 Congress yes
terday, containing the results up to date
of its inquiry into the relations of certain
railroads with the coal industry. shows
that the New York Central. the PennsyI-
vania, the Baltimore and Ohio, and other
carriers named, own directly or by stock
ownership in other companies, large in
terests in coal lands. The commission
recommends that carriers engaged IN in
terstate commerce by law after reason
able time he forbidden to own, or have
any interest. directly or Indirectly, in any
operated coal properties. except such as
are exclusively for their own fuel supply
The investigation was conducted under
the authority of the Tnlman-GHlespie
resolution passed By Congress last win
ter. relating to railroad determinations
and mOnopOIes in coal" This report laid
before Congress is preliminary TO a more
elaborate and comprehensive report which
will be forwarded later
The document just made public deals
with bituminous coal carried east of the
Ohio River and IN territory bounded on
the south by the Norfolk and Western
Railway, on the north by Canada, and on
the east by the Atlantic seaboard- The
roads involved. in addition to those above
named, are the Norfolk and Western,
Chesapeake and Ohio, Buffalo, Rochester
and Pittsburg, Pittsburg. Shawmut and
Northern, Buffalo and Susquehanna, and
West Virginia Central and Pittsburg
Railway, now known as the Western
Maryland
All Have Interest.
II is shown that all these roads own or
control stock in coal companies, and such
ownership by each company is specific
ally described. In treating of the Penn
sylvania system the report says in part:
Ownership of stock in coal companies
by officers and employees has created a
serious and dangerous condition on the
line of this company. These officials
and employees are of three classes:
4. These who, by investment, have pur-
chased interests IN coal companies, pay
ing the full money value Of the property
or the stock purchased.
- Those who, joining with others hold
ing options on or titles 10 coal properties
allowing the use of their names as pro-
moters. thereby acquiring stock al little
or no cost TO themselves
%. Those 10 whom stock in coal com
panies was given outright by promoters"
The opinion is expressed by the commits
sion that the policy OF permitting officials
and employees of railroads 70 hold invest
ments In coal companies furnishing traf-
IIC 10 the railroad IS q mistaken policy
under present conditions, and is TespOn-
sible for faVOTitlsm in the distribution Of
cars and other equipment and facilities
The commission has something 10 say
concerning contracts in the form OF trust
or conspiracy i'm restraint of trade as fol-
lows:
'"The commission finds in the Associated
Railways OF Virginia and the Caroliuas
an agreement among the several railroads
parties thereto not 20 reduce coal rates
without consultation. and the inference Is
that the consent Of the railroad companies
represented In the association is required.
Fixed Rates on Each Road.
In the Tidewater B!tuminous Steam
Coal Traffic Association, the commission
finds that there has been a joint agree
mcnt fixing the rates upon each road for
the transportation Of bituminous tide
water coal.
In the Eastern New York and New
England AII-Rai Bituminous Coal Traffic
Association. the purpose Of the association
was 20 see that the prices of coal and
freight rates We're maintained. and if any
railroad company party to the agreement
did not maintain such prices it was
subject TO such action as the executive
committee might advise. The minutes Of
one meeting show that the principal Ques-
ton for discussion was that Of restriction
of shipments 10 the markets covered by
the association.
In the bureau Of bitumlnOus coal stats
tics. Buffalo district. originally called the
Buffalo Coal Association, the principal
purpose seems to have been the mainte-
nance Of rates between the parties
The ownership or interest in coal prop
critics has. in the opinion of the commits
sion. brought about Determinations, in
justice, and inequalities In the service TO
Independent operators. and has prevented
many persons who desired 10 engage in
mining coal from doing so. In some in
stances the effect Of such ownership has
been to stimulate abnormally the favored
companies. Competition has been TO some
extent hampered from the fact that per
sons were not permitted 10 develop their
properties The combination of the car
riers has had the effect of increasing
freight rates and also the price of coal
10 consumers"
Recommendation Are Made.
The commissions recommendations fol-
low
First That every common carrier en-
gagged in interstate transportation Of coal
be required to make public its system of
car distribution.
Second. That where the capacity Of the
mines is the basis for the distribution OF
cars y faIr ratlng OF the miEns be u