Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-03-28
HE IS RIGHT
Julian Kennedy Again States
Steel Property Value.
UNDER CROSS-ExAMINATI0N
Questioned by Mr.. Young, He Sticks
to 500, 600, 900 Figure.
AGAINST OWNING RAILROADS
But Construction Engineer Does Not
Believe There Is Danger of
an Ore Famine.
UNDER CR0SS-ExAMINATION
AGAINST OWNING RAILROADS

Representative Young Of Michigan, re-
publican. member OF the United States
steel Corporation investigating commit
tee OF the House. today Intercepted
Julian Kennedy. the construction engi.
neer. who yesterday told the committee
that industrial corporations should not
own railroads
Mr.. Young asked particularly as to the
value or the Tennessee Coal and Iron
Company. Mr.. Kennedy. reiterating his
statement OF yesterday that the Tennes-
see company is worth at least S100.0oo.-
OoO. declared that its principal value Ia
In its ore and coal holdings.
Mr.. Young asked IL the Tennessee com.
pany before it's purchase by the United
States Steel Corporation was a profitable
concern.
Mr.. Kennedy said 1t was not conspicue
ously so. Mr.. Young referred to the tes-
timony given the committee last summer
by Leonard c. Hanna Of Cleveland, to
the effect that the steel corporation paid
good price for the Tennessee company.
Mr.. Hanna was one Of the owners OF the
Tennessee company at the time OF thu
sale.
Says he Got Good Price.
mr. Hanna testified" said Mr.. Young.
that he received more from the Steel
Corporation for his stock than he paid
for IT and that he got a good price Do
you think his judgment as to the value
Of this property might be better than
yours?"
Perhaps" said Mr.. Kennedy, "but IL
you asked him the same hypothetical
questions you asked me as to the total
value OF all the coal and ore holdings OF
| the Tennessee company. think his judy
ment might agree with mine"
That there Is danger Of a famine in ore
| In this country Mr. Kennedy denied. He
| said that he believed in the old ore dis
| tricts that have been mined for years
| there would yet be discovered vast guam
titles OF ore.
Mr.. Young referred to Mr.. kennedys
declaration that ownership Of railroads
by industrial concerns is dangerous.
The interstate commerce commission
now has power" said Mr.. Young. to
determine all questions of division OF
rates. Can you see why il would be more
difficult to decide whether an industrial
road Is entitled to a division OF a rate
than any other railroad?"
Considers It Difficult.
81 think it would be very difficult IN
such cases." said Mr. Kennedy.
Would ii be any more difficult for the
commission to determine a share of a
rate than to fix q through rate?" Mr..
Young continued.
NO." said Mr. Kennedy, but I thinl,
the present scheme OF fixing railroad
rates is impractical
What change would you suggest"
II think IL the interstate commerce
commission were given power to fix a
rate that rate to remain until declare
to be unfair by the Supreme Court, THAI
the railroad situation would be muca
more practical" Mr.. Kennedy replied.
AT present there Is a Commerce Court
WI IN he mo ~ A.st-
sions of the interstate commerce COM
mission pretty rapidly. 1 would further
suggest that ii would be a great help
| IL our laws were made more definite"