The Sun.
London, England, 1836-09-28 00:00:00

Tyne, Wear, and Tees, i;ti.fle Seabam, Hartley, and
Blyth, in an agreement, whereby the supply of coals
should be proportioned to the demand at d fair remunera-
ting price e and each party was required to deposit in
the hands of th' elsairrnan a promissory note payable on
demand, to the amount 4201. per 1,000 on the basis, as a
security for the payment of such fines as might be enacted
as penalties fot violating the regulations.'
" Articles of ageconent were afterwards entered into by
each of the coal-owners aceerding to the resolutions then
adopted, the extent and object of which will be best under-
stood by reference to the evidence.
" If, during that agreement, any of the coal-owners ex-
ceed their allowed issue, and cannot give a satisfactory rea-
son therefore they are liable to the penalty stated in the
agreement which they had voluntarily subjected themselves
to. But the agreements only continue from year to year,
and may be renewed, or not, as the parties please. The
agreement of 1833 continues new substantially in force,
except the clause respecting the fines.
" The 7th resolution at that meeting required the com-
mittee of coal-owners to meet monthly to regulate the quan-
tities to be vended by each colliery in each district ; but
they now meet every fortnight for that purpose. The
Tyne, including Hartley and Blyth, and the Wear, then
first concurred in that regulation ; and Mr. Thomas Storey
states, that nine of the collieries on the Tees joined the re-
gulated trade for the first time on Ist March, 1834, and
have continued to the present time.
" The regulation of price, established in the beginning of
the year 1834, was fixed upon the principle, that the best
coals were to produce 265. 6d. the Newcastle chaldron of
53 cwt., on board at the port of shipment ; but shortly after
that regulation was made it was found that the higher-
priced coals were fixed at too low a rate to allow of the
sale of those of an inferior quality ; and the owners of the
best coal were allowed by the Committee of coal-owners to
raise the price 2s. per chaldron, which was followed by those
next in quality, until the relative prices of all lualities were
adjusted. Mr. Brandling states to your Committee, that
before the late regulation, and during the competition of a
free market in London, there was great variation of price,
both at the place of shipment and of consumption, and of
course, from the glut in the market, a great reduction of
price : that the open trade produced a ruinous competition,
and many of the collieries must have been laid in had that
depreciation continued ;' that the natural effect would
have been, that those collieries that survived the shock
would have raised the price to have remunerated themselves
for the loss they sustained ; that the agreement was en-
tered into with a view of raising the price, and protecting
the coal-owners against the loss which competition pro-
duced ; and the price is kept up to the consumer in Lon-
don exactly to that point which will just shut out the com-
petition from Scotland and other places.'
" In the regulation in 1828 (says Mr. Brandling) we
found we had fixed our prices too high ; the consequence
was, it created an immediate influx of coals from Scotland,
Wales, and Yorkshire, and the more especially from Stock-
ton ; so that when the coal owners met together to enter
into an engagement for 1829, we were obliged to fix our
prices a little lower—about Is. the English chaldron—in
consequence of the competition which was created, exists at
this moment, is: constantly increasing, and will increase,
without the assistance of the Legislature, and without any
enactment whatever.'
These statements are candidai and Mr. Brandling,
whilst he denies that there is any monopoly, admits that it
is a combination of the proprietors to keep up the price of
their article, in the same way as a combination of workmei
keeps up the price of their labour; and that the proprietors
are justified just as much in the one case as the labourers
are in the other. A question, however, may arise, whether
the coal proprietors, by combining to prevent coals being
brought cheaper to the market, do not thereby subject
themselves to penalties.
" It appears by affidavits in the Committee's report of
1800, that in 1793 an information was filed in, the Court of
King's Bench against certain coal-owners, for conspiracy
and misdemeanour, in joining in the regulation of the vend ;
the cause was to have been tried in York, but never was
proceeded in.
" With respect to the effects of the limitation of the
vend, the evidence has been contradictory before your Com-
mittee, as well as before the former Committees, as the fol-
lowing instances will show ; and the opinions on that sub-
ject are to be received as from interested parties.
" Before the Committee of 1800, Mr. Clayton, the
town-clerk of Newcastle, said that four or five years be-
fore 1786, there was a free trade and low prices all that
time, attended with loss to the coal-owners ; he adds, that
if the regulation of the vend had not been adopted, the
public would ultimately have suffered ; but he does not ex-
plain how that would have been produced.
" From September, 1829, the coal trade was free, and
prices very low in the London market, and continued so,
until the regulation of the vend again took place in 1830.
" Mr. Brandling, in 1830, said, that if the regulations
were done away with, some of the pits which produce the
best coals would be shut up ; that the prices would fall,
but would not long continue low, as the prices would be
raised again on the consumer by those collieries which con-
tinued to work ; and that many of the inferior collieries
could not be worked in a free trade.

•••••• ••
" Mr. Buddle, and all the witnesses who support the
justice and policy of the regulation of the vend, admit
that, by a fighting trade, the prices would at first fall con-
siderably ; but they allege that some of the collieries, un-
able to compete at these low prices, would be closed, and
that then there woald be a re-action ; prices would again
ise, and the consumers would ultimately be obliged to pay
a higher price . for their coals than they now pay
at a steady price under the regulation. But no examples,
however, of that re-action have been stated to the Com-
mittee, although, besides the above, there are similar in-
stances of a free trade having existed at different periods,
and that during those periods prices at the port of ship-
ment have invariably continued low until the regula-
tions of the vend, by limiting the quantity, had again been
established.
" Mr. Thomas Storey, Secretary to the Stockton Railway,
gives, as his decided opinion, that the regulation of the
vend is beneficial to coal-owners, ship-owners, and con-
sumers, by keeping coals at a steady and moderate price
all the year, and avoiding the great variations which always
take place in a free trade, during which the coal-owners on
the Tees worked at a loss.
" Mr. Dyer alleges that delay has taken place in pro-
curing cargoes in times of regulation ; and that, in open
trade, the coal-owners exert themselves to supply the ships
with the greatest celerity."
The consequences of the " limitation of the vend" are
thus described in the report :
" The evidence also is contradictory as to whether, by
the regulation of the vend, of late years, the quantity of
first, or of second rate, coals has most increased in the
London market.
" Mr. Buddle states, that within five years, 1831 to 180
inclusive, the importation of the best coals has increased at,
the rate of 81,977 tons, while the inferior have decreased
18,597 tons, a year. He considers any coal that does not
sell for 28s. 6di per Newcastle chaldron on board on the
Wear, and for 265. on board on the Tyne, as second rate ;
the lowest coal for gas is 16s. the Newcastle chaldron,
equal to Gs. per ton.
Illhapt the tota
greater increase in the consumption of inferior
tMr. Wood
coals within the last two years in L°ndr.'m orted into
" By other witnesses it is stated, that there hashn boefebnesat
states that the proportion of inferior coa=s
London has been increasing of
nd 1835, 2,294,554 ;
import in 1833 was 2,003,010 tons, a
were of the best, and
of which increase 66,427 tons
225,117 of inferior sorts, making the net increase in the
The tota increase of inferior
latter year 291,544 tons.
coal in 1834, compared with the total increase of all kinds
in that year, is 138 per cent. The increase of best in 1835,
as compared with the total
interior,
since 1833, is 23 per
cent. ; and the increase of intrior, in. the same time, as
and, in proof, ias given the name of each colliery,
compared with the
whole
cal increase,77 per cent. He
has classed as best coalso those which are sold in the
latey eairs.s .
North at and above
1-2 s. 6d. per Newcastle chaldron on
issued from each. He says, that the in-
variable effect of the regulation has been a rise of price,
abnodartdh;e
and a tendency to increase the quantity of inferior coal ; to
place the best coals too high, that the f •in erior may be Fold ;
and that is effected by the factors in London regulating the
selling price for the best
coals, so as to keep up the price
originally fixed by the coal-owners for regulating the issues
in the North : that the immediate of an open trade
has been a reduction of and effect
price, he thinks.. that an open
trade were • continued, three or four collieries of the best
classes
could supply all the market wants, and completely
exclude the inferior. The distinction of best and of in-
quantity
kriur coals by price is very unsatisfactory : there are Walls-
end coals, called the best, from Newcastle at 195., and some
as low as 18s. per Newcastle chaldron, whilst the Hebburu
is shipped on the Tyne, at this time, at 235. and 245. a
chaldron, yet that coal is in the second class.
" Mr. Wood thinks that 245. 6d. for the best, and 20s. 6d.
for the inferior, would remunerate him—viz., for Thornton
and Hetton collieries 9s. 2d. 9-10 tbs per ton for the best,
and 7s. Bd. 8-10ths' for inferior. That the effect of the

I%lZed,
_,,,,,59 4.,../
r‘tiration is, that an infer; c js sd at price a
better one would be supplied at, in an open trade. The,
jszcsent regulation price of 28s. Gd. would he reduced to
245. 6d, per Newcastle chaldron, or about is. (3d. per ton
to the coal owners, and many of the inferior sorts, in that
case, could not be worked at a profit ; there would conse-
quently he a larger proportion of good coals, and not so
mach risk of admixture as at the present time ; thin there
are no peculiarities in the coal market to prevent it asdjust-
itrg itself to an open trade ; no peculiarity in the applies'-
ticet of capital in the coal trade to prevent a regular md
ample stspply ; that an open trade would urge to economy
in working ; and, as a case in point, the manager of a.
celliery, who in 1827 th0....i the price of 245. per New-
' castle emldron the lowest . twnich he could supply them,
now sells file same coals at 17s. 6d. ; that, in fact, a low
steady price would by ultimately better for the coal-owner
than the great changes which have taken place. Under
an open trade, he doubts, whether there would be any profit
for some time ; but it would settle down a remunerative
price, as all other trades must ; and the supply would then
be made by those who could sell the best coals cheapest ;
that the best coals would be sold in an open trade at 245.
Gd. a Newcastle chaldron, ' and the best effects would fol-
low from the most unrestricted and frsse exercise of every
man's discretion in conducting his own t`rEsde, both at the
place of purchase and of sale ;' the present' prices leave an
extravagant profit to the coal-owner, more iian a fair re-
muneration ; he considers the regulation to ha s'e been the
cause of the strike among the workmen, by unsettling the
trade. Mr. Buddle states there has been less trouble with
the workmen since the regulation than before."
The conclusions and recommendations of the Comm.ttee
founded upon the evidence adduced, are thus stated in the
Report :
" The result therefore is, that at present the great mrs-
jority of the coal-owners on the rivers Tyne, Wear, and"
Tees, are combined avowedly to limit the supply of coals to
the London market, so as to raise the price to the consu-
mer higher than a free trade would command : and also to
force on the market a larger proportion of inferior coals at
prices which could not he maintained otherwise than by
such a combination.
" Your Committee, therefore, recommend that the inte-
rests of the consumer should be protected against such
proceedings of the coal-owners, by the removal of all exis-
ting
impediments to the free supply of that article.
" Your Committee here think it proper to insert the
opinions cf two Select Committees of the Commons, at
distant periods, on (he subject of the regulation of the vend
and the measures they recommended to put an end to the
combination.
" The Committee of the House of Commons which sat
in 1800, were induced ' to express their apprehensions that
a power arising from mutual compact, which enables the
coal-owners to provide, in general, for the interests of the
collieries, may at ally time enable them to enhance the
price of an article of such necessity, to the oppression and
danger of the public ; and, under this impression, and sup-
ported by the sentiments of one of the most intelligent
witnesses, that an entire freedom of trade, ns well in the
North as in the metropolis, would be the most beneficial
to the public. Your Committee humbly submit to the
House the propriety of adopting effectual means, by ad-
ditional penalties or otherwise, of enforcing the existing laws
against all compacts and agreements of the nature above
described.
" The Select Committee in 1830 observe, ' that in de-
ciding on the course which it is now prudent to pursue with
respect to this compact, your Committee are inclined to
think that the trade had better be left to the control of that
competition which appears already to have affected it ; and,
as long as the districts we have named are not included in
the regulation (which we trust will not happen), the
effect upon the market of the supply they are capable of
affording cannot fail to be felt.'
" In 1830, Mr. Brandling stated, ' that there was then
no communication, as to the agreement of the vend, between
the coabowners of the rivers Tyne and Wear with the coal-
owners on the river Tees, and that they were considered as
rivals in trade, the same as Wales, or any of the exporting
ports in Yorkshire.'
" Your Committee beg to call the attention of the House
to the fact, that the event which that Committee depre-
cated has since then actually taken place ; and the union
of the Tees is now in full operation for limiting the supply
of coals. When that inquiry took place, in 1830, the
monopoly on the Tyne and Wear was, in the opinion of
that Comtnittee, somewhat kept in check by the supplies
from the TePs, Blyth, Seaton Sluice, and from Scotland
and Yorkshirl. The two latter sources of supply send but
little to the Lone:,on market, as, by Mr. Brandling's evi-
dence, the prices hi London, of coals in the regulation, are
so regulated for the e.xpress purpose of keeping them out ;
and, since the publication of that Report, the beneficial
effects of the anticipated competition from Blyth and
Stockton have been defelted by the union of the greater
numbe*f the coal-owners of those districts with the coal-
owners of the Tyne and Wear, and by their agreement to
the present regulation of vend. '
It appears by the evidence that the arrangements made
for maintaining the regulation of the vend in the North are
sustained by other regulations established by the coal-
factors, which the report describes in die following terms :
" By the act of 1831, all regulations of the corporation
of London as to certificates, entries, and 'Deters were abo-
lished, and the coal trade was made open to any parties who
chose to attend. Coals in the port of London are gene-
rally sold through the agency of factors, of whom they are
about 19 houses, the same number as in 1830. .
" it appears that frequent complaints were made by the
coal-owners of fluctuations in the market, and the factors
were requested to devise some means for regulating the
trade and preventing fluctuations in the price. The factoyst
met on the 3d of June, 1834, and came to the following
resolutions, which were communicated to the coal-owners'
committee in Newcastle, who approved of them, and these
rules have been in force ever since.
" Mr. R. Clarke, a factor, states, that 'in consequence
of a complaint made by our employers, the coal-ftwners and
ship-owners, in 18.3-1, a meeting of the factors took place,
when a resolution was passed that certain quantities of coals
should only be offered for sale to support a fair remunerating
price.' He react the resolutions of that meeting :
" ' At a meeting of coal-factors, June 3, 1834, holden
to take into consideration a communication from the coal-
owners, the following resolutions were come to :
" ' That the factors being desirous of meeting the wishes
of the coal and ship-owners to devise some plan of checking
the fluctuation of prices which frequently occur by pressing
sales, when a larger supply of coals happens to arrive than
the actual demand of the day requires ; it was
" 6 Resolved, that whenever a greater number than eighty
ships reach market on any one day, the factors shall offer
them for sale according to the rotation of entry, and that
not more than forty of such ships shall be offered for sale
on one market day, unless the price of best coals be 2Qs.
or upwards, and in that case to be at liberty to sell such
further numbe,” of ships as each factor may judge proper,
giving to every vessel with the same coals her fair and re-
gular turn of sale, by which arrangement the ships will ex-
perience little or no detention, and the evil be avoided of
pressing for sale at a reLlueed price a large quantity of coals
than the average demand of the market requires.
" ' Resolved, that the factors shall make a return at
three o'clock every market tiny of the number of ships of
the various descriptions of coal that were in their hands for
sale, and the quantities or each sost of coal sold, W ith the
prices thereof, which returns shall he summed up by the
clerk of the Night-office, and forwarded every market day
to the Coal-Trade-office at Newcastle.
Resolved, that with the view of afl;:rding every in-
formation connected with the state of the market, and the
probable demand for coa;s, the Chairman or Sec..retary shall
officially communicate to the Coal Trade-office at New-
castle the sentiments of the factors on that head every al-
ternate Thursday, and oftener should circumstances re-
quire, conies of such communications and returns being duly
entered in a book to be kept for that purpose.
" ' Resolved, that the foregoing resolutions be laid be-
fore the coal-owners for their concurrence ; and, in the
avent of such resolutions being approved of, the coal-
owners be requested to endeavour to obtain also the sanc-
tion of the ship-owners to the same.'
" The rule by which not more than 40 ships should
brought to market in one day, unless the price of the be
coals were "os. and upwards, was altered on the 30th ?
January, 1835, to `?ls., and that rule has continued to tins
time as follows :
" Resolution of factors agreed to at a meeting on Friday,
the 30th of January, 1835 :
"6 When the price of the best Sunderland coals has been
on the previous market-day 21s. or less, the number of car-
goes to be offered for sale shall be 4O
" ' When 21s. Sd. or 21s. Gd.
~ , 231 s. 9d,-225.
666 —02 s. 3d....
" Mr. Clarke states, that on the 7th of December, 1835,
some alteration in the price and number of ships was
made, but on the 3d of March they returned to the above

scale.
" The above regulations do not limit the number to 70
cargoes when circumstances justify the expectation of a
demand ; for example :
" On the 7t:i of January, 1835,100 cargoes were offered,
of which only 82 were sold.
" On the 21st of January, 1835,120 cargoes were offered,
of which only 75 were sold.
"'There are always more than the numbers fixed by the
regulation offered for sale, as all small vessels under 131
tons are, under certain circumstances, sold.
" All vessels loaded with coals for
gas companies also
begin to work on arrival, and also all vessels for the Go.
ve rn mut.
" It will be seen by the returns, that there are often
great numbers of ships detained in the river waiting for