New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-01
PENN. COAL co. SALE
Y. b. Thomas's Testimony in
Federal Suit.

t1,cn p. Thomas. president % the Lehigh
x.fev Railroad Company. in HIS testimony
A. fbe reoei.t suit OF the government against
Sc acknowledgements railroads an alb
.,ract o. which was made public yesterday
s.sc-sbed the absolute necessity which er-
,s,es 81 the time tor the purchase. about
g. wears ago. az the Pennsylvania Coal
Germany by the Erie Railroad COMPANY
:, which he was then president He also
,,,-Iined the part played by political consid-
.-srions IN bringing about the settlement
~ the anthracite strike of 1890. and denied
v-,thout Qualification that there was any
corshlnation among the coal railroads for
Controlling THE production or the price OF
coal
TIE purchase % the Pennsylvania Coal
Corarany. Nr. Thomas testified. was made
IN his initiative. That company. because
~ dissatisfaction with the rate made II
~ ,he Erie. planned 70 extend its Erie and
uvomlng rad. In which the Erie was a
minority stockholder. 10 the Hudson River
that extension. which would have meant
the loss a. the coal company's tonnage 10
The Erie was vainly opposed by President
Thomas who finally induced J. p. Morgan
4 Co. 90 buy the coal company for the
account ~ the Erie.
TESTIFIED. 'that made the Erie property a
solvent property, ano IL is their salvation
TODAY" lie denied that the purchase was.
- alleged a step IN any combination OF the
defendant railroads. saying that he had
As Ear as possible. kept secret the nego-
nations between the Erie and the coal com
usny.
The witness also denied an anerario, ~
tEe Erre-r-oe-t thar the sO-caIed Te-nr'e
Iron Company transaction was a step tow
ard an L.-EI combination IN restraint OF
trace Asked 81 there had ever been any
attempt -r any way % control the produc-
ROE ot anthracite coal. ne answered
have never known OF a period. sirca
rT connection N-tl TIE business when
any -..r..-fi mas been made TO regulate
- ---.-- o. .ca- l-at should so TO the
was r charge ~ J was n0t free ~ nine
Or transport a01 sell an The coal could
- -- Pc % the properties Of
-r.rr 4 was lr charge
Tr answer -o another question. Re testi-
fe1 r-at De knew OF 40 agreement OF. IN
dsrs--uc.-s among the coal companies as
t5 me price OF coal Asked about the as
Qer Cer- contracts. by which operators
obtained f-r their coaI 10 per cent Of The
se--E price az ti1sWater NJ. -noraas
-a-.e- --at tE.se contracts were rlot
.... . .-r--eraECe 20 d combination.
l-.-a-E. be explained. contracts for
D r'-- m uCsVatsr were made as
-rT pep c-nr t-t J1e operators had
E-al crowded them ND Oh 60 Der cent. 90
which Vs tle rliils rs-re ID 1870. Presl-
dem Thomas went or-
DIT -e-. iu pursuance n his plan for
rt- f" -.r lIs ls1OrlLE men. came
a... . .-t .u-u ry lU 800 and called 4,
Mas president OF The United
tH- f-f.ate--. 1lst al Thar
% .-- "a Pres. rl-ia. election or.
'. .r.. -. advance rra price Id ts51-
ra..'" business has r.. same ar
fa... --r q politician that q candle has
-- DO MOI kl0w why. but Il
lte were pressed from every side. NJ
hanna came q. -r- u Irsal auC begged
l- l- use .-s influence to nave Is accf-e
I'D '.-" demands, than tie election II q
t-l.-...-ra- President was threatened Nv
r-- standing C-t and lEhrug The labor
Unions. rr-n every side pressure was
forced o. make a 1o per cent advance. and
Was me lUferlerLi1D 81 the politicians
irtC e. business which they neither under
stood nor could conduct which forced the
settlement Of thar srr.iz e and the Uunec-
essay and ID advised advance
Asked 70 that resulted IN q 20 per cent
advance % she cost OF labor. the witness
s-sVe-a5.
= did and upon that THE individual o.
orators demanded 4l increase OF rnelr DER
eeL-aCa lrlOus meetings were held be-
tween '-e coal companies purchasing their
Goa. ard themselves, lu which iJ was anal
should 0e made, and made for the lie OF
tlfr TrurEr~V.