The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-07-29
SOUTHERN RY.
PROBE ENDED
PRESIDENT HARRISON TELLS
OF THE ROADS
FINANCES w,
is CROSS EXAMINED
Refuted Charges That Roads
Made Rates Under Agreements
Known As Understandings /,
is CROSS EXAMINED
(By Associated Press,

Washington. July 2S.-At tho con-
clusfOn Of rigid cross examination
OF Fairfax Harrison. president of tho
Southern railroad. as to t:.c financial
operations OF his rs,d and the method
OF rate making employed by!hc South
ern systems, the Senate Hpscial COM
mittee investigating coal trannporta-,
ticn today took recesr until Novem-:
Der 10. The hearing will then be re-; /;
sumcd with view of making re-
port early In the next Session OF Con-
gress. gTs M
Under cross examination MIR. Har-s
rison was piled with questions as to
The holdings of the Southern directors,
In the systems of stocks and bonds. !,
MIR. Harrison said that the stock
books showed the directors were
only nominal holders, bEt ilc insisted
that they held large blocks OF bonds.
Charles A. Douglas. attorney for In
dependent coal corporations In South
ern Virginia. sought to chow that the
directors held large financial interests
In ccal properties along the railroads.
On Rate Question.
President Harrison was questioned
In detail as to whether the railroads
today make rates by conference agree
ments. deeignated as s.'tindefstand-
ings." He insisted }ii!that,iithe rates
were announced at these gaiheringssOf
the officials Of competing n railroads,
individually" and not Jointly. He
was unable to give the. detailed ac-
count Of how the; rates wero innsle
and sMggeOted that the koad 3GSs s expert
n 6ssstionsd asssS 'tiis W I; aSiSa ii 81
d. L. Quincy. an fndepGfia aent. .toal Sop.:
orator Of ofABristol, Tenn, that GOAL ltrafy
flc from the Appalachian fields of Vir-
ginia. had been arbitraf1l divided be-
tvseti The s1ouisvii..5 A.::;ES!ss!tIe end
Southern roads, Mr.. Harrison said
that he had no knowledge iSf any such
agreement. He also deciated Ahe had I
no personal knowledge OF any attempt
by.the Southern to get "a Joint coal
service over the Norf6ik and Western
to tidewater. ~ 1. :.
~ juft wanted 70 Gee III the Enego-i
tiations OF the Southern Sforfthe Joint
arrangement was In good faith, !" .ex-
planned Attorney Lyon, frepresenting
the independent coal sh,ppers, ,sl.s
president Finley carried ont that me-
gotiation and everything that he did
was in good faith" responded Presf-
dent Harrison. ASi..sliftisss, ss, i s g
In Reference to Dulaney. ;sss
Charles Douglas. an attorney for
tho independent operntpfgt s.rigid diy..
cross examined PresidentS Harrison
about his statement yesterday that
Dulaney was suffe, ing Arrbmf b nde1u-
sion Of persecution" Th&i attorney
presented evidence to SNOW that In
1918 Duianey had offered to sell the
Virginia and ScuthwesteTnRa Railroad
to the Southern for 81 300 600 and
three years later the Southern bought
1t from Henry K. McHargf Tor ,f6. .000.-,
600. Mr.. Douglas asserted that Grant;
B. Schley whose name appeared on
the contract for the sale9of the road
in-law Of George F. Baker, SRI one of
the voting trustees Of the Southern
and that George 3. Bnkert Jr.s,was a
Southern director. +
"You were in a better position to :.
buy when McHarg was selling than
when Dulaney was selling weren't
you q, inquired Mr.. Douglas lt,s
Individuals made no difference;
the time made the difference, re-
piled President Harrison. tssThe reas-
on we paid $4,000, 900 for the Virginia
and Southwestern was because the L..
& ". wanted IT, 81 tSsSt;t q i. q.
MIR. McHarg is now a director OF
the Virginia and Southwestern, the
witness said in reply to a Question.
He is the same H. Is: McHhfg who
was director OF the N! 5YI.f N. III. and
H." suggested the attorneystS n Is
'Yes." s3}i & So SC
sand you stand by your opinion
formed In 1906 that he never did an
unworthy thing?" ~ &. : -. ss
II know nothing to make me change
my suggestion" 81. 8 /.
Attorney Douglas brought out that
Daniel B. Wentz Of sPhilade delphia, q
large coal operator OF Stohesa, near
Dulaney's Black Moutaih mines, had
bought the land for the Sonthern's
terminals to- be built MT CHAR leston4
Mr.. Harrison said that Wentz turned
It over to the Southern at the figure
he paid for 1t. y Y, {;
Defends Vents. rs ~
"Mr. Wentz is quite a ffayorite with
the Southern, Is, he not fn: inquired Mr..
Douglas. .ts \,
''He is a large SHIPPER pyer our.
lines ii t5 (,
aAnd aEfsvorite?' Il !.
"He In o nice fello ana Swe all
like him. ssss.
& Mr.. Douglas asked IL the directors
OF the Southern railroad mad snot for
Confined On Page E0lr9 q.