The San Francisco call., 1907-01-26
WOULD FoRRIp owNERsHIP

That carriers engaged in interstate commerce
| be forbidden after reasonable time TO own or
have interest. directly or indirectly, In any
operated coal property, except such as used used
ownership by officers or employees OF common
carriers OF any coal properties or stock be for
/ hidden.
A summary is given showing the in
terest of railroad officials IN corpora
tions or companies operating CONNER
/ cial mines or engaged in coal traffic.
Ownership of stock in coal compa-
nies by officers and employees of the
Pennsylvania Railroad. the report
SAYS, has created a serious and dan
gerous condition on the line of this
company.
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, were usually
selected from among the officers and
employees of the railroad whose in
huence IT was thought desirable to
| secure This practice has grown to
i be a scandal on the Pennsylvania Rail-
road, and no one appearing before
| the commission attempted to justify
/ it. The commission cannot too strong
/ " express its disapproval of these
practices, it says.
RATES AGREED UPON
The report says it was apparent to
! the commission that "the various rail-
way and freight associations were
used for the purpose of agreeing upon
and maintaining freight rates, and
that the distribution of tonnage to
these several roads was only main
tained in so far as the same was
accomplished by fixing agreed freight
rates"
The commission finds in the asso-
ciated railroads Of Virginia and the
| Carolinas an agreement among the
several railroads parties thereto not
to reduce coal rates without consulta-
tion. 1t says:
| All -Bituminous Coal Traffic Association the
purpose of the association to that the
! In 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
In the Ohio Coal Traffic Association, located
/ at Columbus, o., agreement appears as to
rates on all the roads, although in many in
stances rates fixed thereby which should be
/ competitive.
FREEZES OUT COAL MINERS
The associations having failed to ac-
compIish the desired purposes, the
| Pennsylvania Railroad Company deter
mined to buy sufficient of the stocks
OF the Chesapeake and Ohio, Baltimore
and Ohio and Norfolk and Western
] railroads so that, acting with others, It
might control the policy Of these roads.
The commission reaches the conclusion,
aside from the question whether the
/ Pennsylvania Railroad had a majority
/ Of the stock Of other railroad compa-
nies mentioned except the New York
/ Central, that as a matter of fact, the
Baltimore and Ohio Chesapeake and
Ohio, Norfolk and Western and Phila-
delphia and Reading railroads were
practically controlled by the Pennsyl-
vania and the New York Central and
! Hudson River railroads and that the
result was TO practically eliminate sub
stantial competition between the car
rIers.
The report says the ownership or
interest in coal properties or coal traf-
fic by carriers or their officers or en-
ployes has, in the opinion of the COM
mission, brought about discrimination,
/ injustice and inequality to independent
/ operators and has prevented many per-
sons who desired to engage in mining
coal from doing so, and that the COM
/ binations or contracts of the several
1 carriers, members of the associations
mentioned. has had the effect of in
1 creasing freight rates and also the
price of coal to the consumers
The report says Ii appears that one
OF the most fruitful sources of COM
plant by shippers against the carriers,
/ so far as car distribution and the fur
nishing of facilities is concerned, has
1 grown out of the want of publicity on
the part of the carriers in their deal
ings with the shippers.