Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-05-13
Attorney Says 1t Practically
Dominates Railroads.
ALLEGES RATE DETERMINATION
Declares Cement Company Owned by
Steel Corporation Obtain More
Favorable Rates Than It's
Competitor.

New York, May 9-The Baltimore
G. Ohio Railroad company is charged
with freight rate discrimination in
favor of the Universal Portland Ce-
ment company, a subsidiary OF the
United States Steel corporation. The
Alpha Portland Cement company, OF
Mannheim, W. Va, is the complainant
and testimony was heard by the inter-
state commerce commission.
The steel corporation and about 160
railroads, other than the Baltimore IL
Ohio, are made defendants, and the
Alpha company seeks to show that
the railroads are a part of a COM
bination of which the steel corporation
is the head
Louis H. Parker, who with Archibald
Cox represents the complainant, Of
fered evidence to show that the Bal
timore & Ohio and its connecting lines
have Disseminated in favor of the
University Portland Cement company
by giving it rates sometimes 40 to 60
cents lower than that given the AL
pha for the same service into terri
lOIt6S NHcIS lDC ldblCl was NAy AA6 W
do business.
Steel Trust Dominates Railroads.
THE United States Steel corpora
ton practically dominates the rail-
ways of this country" said Mr.. Parker
in opening his case, "and its tremen-
dous influences have enabled the
Universal Portland Cement company,
which is owned entirely by the steel
corporation, to obtain more favorable
rates than can be had by its competi-
tor, the Alpha Portland Cement COM
pany. We charge unjust discrimina-
ton"
President A. F. Gerstell, of the AL
pha Portland Cement company, testi-
fed that the favored rates have re-
suited in increasing the production Of
the Universal Portland Cement COM
pany at an abnormal rate and have
enabled the Universal concern to Of
fer cement at times for so cents a
barrel He estimated the capital in
vested in the cement industry in the
United States at s150.000,000. The
CulfSISldl IOlupdAyt hC Sn9u, hou oN'
ed more than half a million dollars by
its special freight rate. General Man.
ager Gallagher, of the Baltimore &
Ohio, Mr.. Gerstell testified, had prom
Used to give the Alpha company fair
rate, and instead of raising the rate
on the Universal company lowered it
so the difference. was still greater.
III
pany must ship a large part of its
output over the lines of the Morgan
town & Kingwood Railroad company,
a short line which connects with the
Baltimore & Ohio. One of the defend
ants, its general manager, Charles F.
Sutherland, was called by the CON-
plainant to testify
Fighting For Existence.
II think the influence of the United
States Steel corporation had much to
do with fixing the rates which favored
the Universal Cement company" he
said. THE Morgantown & Kingwood
is fighting for its existence against
the Baltimore & Ohio, which has it so
that the road must pay whatever con.
Meeting charges may be imposed"
He said that the Morgantown &
Kingwood was in sympathy with the
shippers and against the Baltimore &
Ohio Mr.. Sutherland added that he
had tried to get lower rates for
freight His line is obliged to deliver
its freight for northern and eastern
points to the main Baltimore & Ohio
line at the junction near Morgantown,
w. Va.