New-York tribune., 1912-03-14
CONDEMNS STEEL ROADS HIGH PRICES WORLDWIDE
Railways Should Be Free from
Trust Control, Says Wood.
DOMINATION HURTS PUBLIC
Pennsylvania Railroad Official
Declares His Line Bought Plants
for Self Protection.
fFrom The Tribune Bureau

for Self Prote ction.
From The Tribune Bureau
Washington. March 13--Quslifyiug as
ono or the most outspoken witnesses yet tc
appear before tho Stanley steel investigat-
ing committee, Joseph Wood. first vice
president Of the PENNSYLVANIA Railroad, OK.
pressed tho opinion to-day that large indus
trial corpora tions. such az tho United states
Steel Corporation, ought not to bo permit
ted IN make common carriers Of short line
railroads which they control Al mere plant
facility lines. The railroad official acknowl-
edged that a division of through rates
granted to plant facility subsidiary gives
to tho steel trust an advantage over It's
competitors
Mr.. Wood made another frank statement
He said tho Pennsylvania Railroad has ac-
nurcd control of the Pennsylvania steel
COMPANY and the Cambria Steel Company
because the purchasers feared that the
United states Steel Corporation would raise
the price Of rails"
Tn other words. the PENNSYLVANIA feared
monopoly on the part of the steel trust?
asked Representative Bartlett Of Georgia
Perhaps that may have been in the
minds Of the road" said Mr.. Wood, "but
understand that the chief reason was the
one 7 have given 10 you
Remembering testimony that plant subsdi-
aries Of the steel trust share 10 a large eX.
tent in tho division of freight rates. both
Democratic and Republican members Of the
committee insisted that Nir Wood express
an opinion on the practice Of such corpora
tions 10 make common carriers OF their spur
lines
"is there any reason" asked Chairman
STANLEY. why = plant facility road should
not he mere part Of tho plant and not =
common carrier. getting division of the
rates."
Should Not BE Common Carriers.
1T would bc better II they were allowed
no rat" division" said Mr.. Wood II should
take the point Of view that 2 railroad oper-
a'od ostensbly rs a plant facility by an in
dustrial corporation should he confined 70
the business Of that plant, and not par
ticipate in general railroad business as a
common carrier"
Mr.. Wood informed the committee that
complaints from Independent steel manu-
facturers that the United States Steel Cor,
poration had an unfair advantage in ship
ping because Of it's ownership of railroads
Representative Young, of Michigan, q
Republican member of the committee con
Quoted a cross examination Of the witness
with the result that the railroad man, ad
mitting that the Pennsylvania Railroad
had a selfish interest in trying 10 get the
freight traffic of the United States Stee
Corporation, insisted that the ownership
Of railroads by industrial corporations wa;
detrimental to the interests of the public.
What exceptions" asked Representatlvt
Gardner, Of Massachusetts. would you
make 10 industrial enterprises owning rail
roads?"
'I don't think would make any" saic
Mr. Wood
We'll. what is your objection, for in
stance, 10 the United States Steel Corpora
tion owning railroads from the standpoint
Of the public INTEREST,"" Representative
Young asked.
We'll, as a railroad man and as a citi
zen" Mr.. Wood replied. such ownership
seems 10 give an advantage 20 the United
states steer 'OIpOIdtlOH III llidJ IL llidhc'
q profit by operating the railroads that III
competitors do not make"
Selfish Interest Uppermost.
DO you mean that the Pennsyvani;
Railroad would like to get the business o
/ the Steel Corporatlou?" Mr. Young asked
why, certainly; a selfish interest is al
ways Uppermost," Mr. Wood ansv cred
but I have shadowy idea that it would
! be 70 the general interest of the public i
| plant facility railroads were confined t.
| tho business Of the industrisl corporation
which operated them
! Representa- tive Gardner referred 70 IN,
! Pennsyly anita Railroad taking over tn.
! Pennsylvania steel Company and the Cam
/ bra Steel Company. and asked.
| How does i happen under the commodi
! ties clause that the Pennsylvania Railroad
! can own such Industrial corporations"
! These steel companies were acquired h,
! the Pennsylvania Railroad" said Mr.
| Wood. before the commodities clause wa
! decided, and | assure YOU that no such
| concerns have been acquired since"
! Mr. Wood told the committee that freish
rates on steel products in PENNSYLVANIA anc
the East were agreed upon by a conferenc.
/ of railroad traffic managers, and admitted
! that representatives of railroads ControlIeC
! hv the United states Steel Corporation hac
an influence in fixing those rates.