New-York tribune., 1909-09-28
MIR. BAER TESTIFIES
NO COAL CONTENTION.
CoLieries Acquired to SGue. Erie
Credit-JerSey Central Control.

T7biladelphia Sept 27.-"There has never been an
agreement combination or conspiracy between the
companies represent and any other coal or ran
road companies TO control the output or sale OF
anthracite COAL" declared George +. Baer OF the
Reading company. to-day. when the hearing OF the
Governments suit dissolve the alleged hard co@
trust was resumed in the Federal Building mere
sSorne Of my toploftical friends in New YORK VINO
are operating coal companies and railroads SAID e
Reading had no right TO go West when our com
pany began seeking a market in the West ne
added.
Mr. Baer who appeared on the stand for the hrst
time In the two years the case has been nnoer way
smoke for both the Reading companies and the Jer-
sew Central Railroad and the Lehigh and Wilkes
Barre company of which he is the head. he en-
tered a specific denial 10 all the charges cohtaiiieu
IN the complaint OF the government nleo IN june.
1907 While on the stand the anthracite leader
rave much interesting information regarding the
natural law OF prices and coal production
Mr. Baer was examined by counsel for his COM
panies. He denied that a monopoly existed IN the
Anthracite region denied that the Independent op-
orators were forced 20 accept the s. per cent basis
on which they sell their coal to the coal CARVING
reads and further absolutely denied that mere
was an attempt division Of the coal productoh-
ssKVe mine and market coal regardless or whst
,sber conpanies do" he said. He testified that no
railroad company could prosper by carrying an
thracite coal exclusively and said that In the tra
&c Of the Reading Railway at the present time the
Increase Of the tonnage bltuminous coal exceeds
Railroads prosperity ne said dated from the time
that miscellaneous trafhc became greater than the
hard coal tonnage
In denying that the individual operators were
forced TO sell their coal the coal carriers on the
IS per cent basis Mr.. Baer said the individual
operators entered into q voluntary agreement with
the railroads The cost OF mining and selling the
coal he said. was expensive, and by selling thelF
product 70 the railroad the individual risked moth
ing in transportation, had no expense IN marketing
his coal and was always OF his money. The
railroads, Mr.. Baer said did not care whether the
independent companies continued the contract or
cancelled It.
Mr.. Baer explained that the uniform price
charged for anthracite coal not the result OF
an agreement. The Reading company, he said. is
under greater expense than any other company IN
producing coal, and it fixes fair price The others
follow and reap greater profit.
The price of the entire supply Of anything neces-
sary for n community viii be regulated by the cost
OF production Of that part OF the necessary supply
which is produced at the greatest expense. he SAID
Taking up the last increase Of 30 cents ton IN
domestic sizes after the strike OF 1902 Mr. Baer
said the increase in wages and other expenses re-
sulting from the strike would have caused the COM
pany TO operate at a loss shut down had not the
price been raised.
''Our experts showed that the increase amounted
10 IS 10 50 ton, and sales agents wanted
me to increase the price Of coal 70 cents ton,
said Mr.. Il concluded however, that 80 cents
would be fair for domestic sizes. We refused TO sell
coal TO any dealer who went above our prices. We
tried to protect the public in every way"
THE public must not forget" said Mr.. Baer.
turning 10 the newspaper men, that 20 per cent of
the output OF the Reading company is sold below
OF production. The public estimates coal profits
on the prices Of domestic sizes, and does not take
Into consideration the low cost OF steam sizes"
Mr.. Baer denied that the New Jersey Central
Railroad was acquired TO shut out competition.
He said the Jersey Central had the best harbor
facilities in New York for shipping coal and had
enough land for one hundred years TO come for
EXPANSION.
He said that he heard the Jersey Central was
lor sale; that the people in control Of II tired
sf it He went J. p Morgan and told him what
be had heard and also told him that the acquisi-
hOn OF the Jersey Central was necessary for the
Reading for q New York terminus. Mr.. Morgan
iold Mr. Baer 10 investigate and the result was
that the Jersey Central was secured by the Read
ng not 10 stihe competition. Mr.. Baer said, but
70 prevent competing companies from running the
Reading.
The Temple Iron Company, the capital stock Of
which is owned by the majority of the hard coal
faTTying roads, acquired certain collieries. Mr..
Baer said 10 the credit of the Erie company
and other enterprises that would have been affected
& the Erie got into financial difficulties
Mr. Baer was cross-eKamined in rle afternoon
~ James B. McReynOlds. special assistant the
5nited States Attorney General The witness ad-
tntted that al the roads shipping anthracite coal
% New York competitors. Following this ad-
mission Mr.. McReynolds got Mr. Baer TO admit
hat the Reading company secured a controlling
AAeIesl IN lile Jersey central Railroad and had a
arge interest in the Lehigh Valley Railroad Com
faany. The Jersey Central stock Mr.. Baer testi-
3ed was acquired in 1901, and the same traffic ar
tangements exist prior to the acquisition.
d large block of the Lehigh Valley stock he said.
eas taken over by the Reading, Erie, Lake Shore
md other roads because The Lehgh Valley road
Eas IN bad financial condition, and the bad effect
Its going into the hands of receivers would have
1een felt by other roads. The Reading company,
ie said, never had control Of the Lehigh Valley
Mr.. BaeF was the only witness OF the day The
iearing adjourned until "Wednesday when the
lnal testimony Will be taken in New York It is
iot known when the viii be taken up in the
United States court here.