The Birmingham age-herald., 1914-01-16
CHARGES RAIL WAYS
COMBINED To FIX
BASIS FOR RATES
Charles E. Henderson on the
Stand in Anthracite Coal
PrObe-Fails to Iden-
tify Letters

Philadelphia, January 15.--Attorneys
for the interstate commerce commits
sion, which is inquiring here into rates
and practices of the anthracite coal
carrying railroads and the so-called
railroad coal companies, endeavored to-
day to show a combination among cer-
tain corporations identified with the
hard coal trade to fix basis for rates.
Charles +. Henderson, former vice
president of the Philadelphia and Read
Ing Coal and Iron company, was called
to the stand in an attempt to establish
this. Mr.. Henderson was shown letters
signed by G. NJ Cumming, stating that
at a meeting of the Temple Iron COM
pany in New York, it had been pro-
posed to fix either percentage OF a
flat rate to outside shippers. Those who
attended this meeting were representa-
tives of the Erie, Reading, Lehgh VAL
ley. Jersey Central and Delaware
Lackawanna and Western companies
Another letter said George f. Baer,
president of the Reading companies
had advised that a fiat rate should be
charged, as a percentage rate was not
advisable or eXpedient.
Could Not Identify Letters
Mr.. Henderson testified that he could
not positively identify the letters. one
of which was sent to him, but that he
was familiar with the subject matter
The witness said he objected to the
establishing of rates mentioned in the
letters because he believed it could not
be done legally. He further testified
that so far as he knew the proposed
rates were not put into effect at that
time.
The finances of the Reading corn
pany, Reading railway, Reading Coal
and Iron company and subsidiaries of
these companies also were take up,
The witnesses examined included
Gordon Chambers. assistant real es-
tate agent of the Reading company;
w. II. White, comptroller of the Read
Ing company and the Reading railway.
and George Seigler, also an official of
the Reading companies.
The primary purpose of the present
inquiry of the interstate commerce ccin-
mission is to establish whether coal
freight rates are reasonable. and coun-
sci for the commission delved into the
finances of the Reading companies to
find this out.
Inc comm1SSlOnS 3 counsel endeaVOte ell
to show that the. Reading company the
holding concern for the other Reading
companies, owned the stock OF the
Philadelphia and Reading Terminal
company.
Paid in Advance
w. w. Morgan, of counsel for the
commission, in examining Mr. White
brought out the fact that the Reading
railway paid the Reading company
monthly in advance instead of semi
annually in arrear, per cent year
on $1S,000,000 worth of equipment and
also guaranteed to repair or replace
damaged or destroyed equipment The
witness admitted that the railway cont
pany paid to the holding company
more than 100000 for requirements
valued at more than s6,000,000 and that
the excess of s3,000.000 was charged
up to operating expenses of the rail
road company. The witness said that
this excess payment was due to the
increased cost of material.
Further examination of Mr. White
brought out the fact that the railway
company paid in advance to the holding
company various sums of money on
account of dividends that had not yet
been declared. Counsel for the Reading
company said this was not violation
of the law. The dividends amounted to
! 5 per cent per annum.
Witnesses were examined earlier in
the day with regard to allowances that
had been made to the Lehigh Coal Nay