The sun., 1910-01-31
COMMODITY CLAUSE CHARGES
PROSECUTION CONTEMPLATED
BY INTERSTATE COMMISSION.
Certain stone QuarrIes and Two small
RaIlrOads in Indiana and several
Large Railroads Doing an Interstate
Business Said TO BE sharing Rates.


Business said to BE sharing Rates.
RWAsHINdToN. Jan. 30.--Anoth0r prose-
cution under the commodities clause OF
the Hepburn railroad regulation act is
contemplated by the Interstate Commerce.
Commission. The Commission has been
conducting an investigation into the
relationship that existed between certain
stone quarries. two small railroads in
Indiana and several large railroads doing
an interstate business with all parts OF
the country. Il is alleged that the inves-
tigation has developed an amazing and
intricate interownership among the rail-
roads and the quarries which permits a
certain group OF Bedford stone quarries
whose material is used largely throughout
the United States in the erection OF
buildings to supply a large percentage OF
the stone quarried in Indiana and to freezs
out many competitors.
The testimony already taken indicates
that three OF the originating railroads
sharing in joint rates to dineeent parts
OF the United States own the quarries.
shipping via their respective lines on such
rates. or the roads are owned by tn
persons owning the qusrries. 1t is indi-
Gated also that the division OF the rates
allowed these originating roads are ex-
ceptionally large and amount to con-
cessions to those owning the tonnage and
controlling the routing.
The originating carriers now under
investigation are the Bedford Stone Rail-
way, the Bedford and Wallner Railroad.
the Chicago, Indianapolis and Louisville
Railway and the Southern Indiana Rail
way. The testimony already taken. 1t
ia alleged, shows that the railroads origi-
mating stone shipments in this territory
addition to receiving a five cent bonus
on every hundred pounds shipped re-
ceive 20 per cent. OF the balance OF the
Joint rates to trunk line territory. This
division is given regardless OF the length
OF the haul OF the initial road, The Bed
ford Stone Railway is a little more than
two miles long. IL extends from River
dale, Ind. a point on the Baltimore and
Ohio Southwestern Railroad. to Stoning-
ton. Ind. and is owned by the Bedford
Stone Railway Company. which has a con-
tract with the Baltimore and Ohio South
western for joint rate arrangements.
According to the testimony taken,
shipments from Stonington to New York
city. where the rate is 2s cents per hundred
pounds, bring the Bedford Stone Railway
nine of the 2s cents for hauling the stone
a little more than two miles. and the other
carriers get 10 cents for hauling it s0S
miles.
1t is charged that the officials OF the
Bedford Stone Railway tried to conceal
from the commission the facts regarding
the ownership OF the road. The general
manager produced list Of stockholders.
with the statement that this list had not
changed between December 81, 1905, and
July /. 1909, and said that he owned no
stock in the railway company.
A report was shown him Of the Bedford
Stone Railway TO the Interstate Commerce
Commission, sworn to by himself as COR
rect OF his own knowledge, covering the
years leos, ieG7 and 1908. which gave a
list OF stockholders entirely different from
that furnished 10y him under oath in con-
nection with the present Investigation
and in which his own name appears.
These reports show that he was q director
Of the company throughout that time.
although his testimony indicated to the
contrary until the reports were shown TO
him. The general manager then said
that that was the first time he knew he
was q director.
As far as the investigation has gone
before the commission IL appears to be
shown that the Cleveland Stone Company
is the owner OF all the stock Of the Bed
ford Stone Railway Company and the
Peary- Matthews Buskirk Stone Company,
and under what is designated as its
corporate aliases" ships all the stone on
joint rates with qliarries and receives
all the benefit OF the divisions,
The commissions Investigation has
also disclosed that the name Of j. &.
Ray, a salesman for the Peary- Matthew'S
Buskirk Stone Company, appears as
general freight agent. OF the Bedford
Stone Railway on tariffs prepared and
western Railroad filed with the commits
sion and also in the official guide. He has
informed the commission that he has no
duties whatever in connection with the
railway and receives no salary from il.
The Bedford and Wallner Railroad is
another short line figuring in the investi
CATION. IL is three miles long. extending
from a stone quarry owned and operated
by the Bedford and Wallner Construction
Company to Bedford, Ind, which is on the
Baltimore and Ohio Southwestern. Ii is
alleged that the management OF the Bed
ford and Wallner Railroad and the Bed
ford and Wallner Construction Company
are absolutely identical, all its officers
and employees receiving compensation
entirely from the construction company
and that the short line railroad receives
as the result OF joint traffic agreements
the Bedford Stone Railway.
The Chicago. Indianapolis and Louis
vile Railway, extending from Chicago to
Louisville, Ky. and whose connections
reach the Indiana stone quarries. is also
involved in the estigation, and il is
charged that it, 10 the owner OF all the
stock OF the Consolidated Stone Com |
pany, a concern which operates quarries |
and mills on its lines.
According to the testimony taken the |
Southern Indiana Railway the Bedford |
Belt Railway and the Bedford quarries |
are closely allied properties. IL is said |
that so far il has been impossible 20 de- |
termine the relationship between them, |
owing to the fact that this relation |
ship was based on the individual owner
ship OF portions OF the stock of each |
by John X. Walsh OF Chicago. who was |
recently sent to the penitentiary. all being z |
subject to receivership proceedings and |
various encumbrances.
John II. Marble. chief Of the division OF |
of the Interstate Commerce /
and who has been in charge /
Of the investigation into the relation
ship between the quarries and the rail- |
ways, has filed with the commission a |
report in which he says that the carriers |
are violating the commodities clause OF |