New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-20
LEVELING COAL UPWARD

L
| PRODUCERS TO CARRY STOCK THROUGH THE
| SEASON.
The retail rates of coal, at this time last
year, In this CITY, from SC % per ton it Is
selling at So with ash coal at % 90 The price
has been steadily advancing since May from 10 to Is
cents per month"; although the demand has not increased
and the stocks laid by househoders smaller than
during the same months for several years past. The
wholesale price Of Scranton coal a. Indicated by the
auction Sales Is u Al higher than It was last summer
TRIBUNE reporter visited yesterday, a number OF
wholesale and retail coal dealers and the officers OF
OF the large mining and transportation companies
in order 70 learn the for this large increase ia
price The opinions Of the dealers not Interested in the
business on mining may be stated thus
Coal Is higher this year than it was year. because
il was then too low 10 pay fair profits TO the mining
companies Within the past year the Philadelphia and
Readsng Railroad Company have INTO possession
OF nearly all tbs Schuykll mines which formerly
owned by larRe number % small companies, and have
engaged not TO bring any coal market lower
rates thsn VIII pay good dividends the capital In
vested in the business Each month they issue crou.
lar stating the price at which they hold their different
grades OF coal, and bs bought
except at their figures. Each month
May from 10 TO Is cents per ton have been sdded
to their schedule rates The Reading Company have an
understanding with the Scranton Coal Company by
which the latter's prices made 70 correspond to
theirs This company now bring only 1900 Of coal
per month TO market while year they brought from
10000 to 10000 per month Their monthly auction sales
are held few days after Reading circulars Issued,
and merely for the purpose getting prices sleve
with those Of the Reading Company They practt
caIly mock auctions The two companies with the
Pennsylvania Coal Company and the Delaware and
Hudson Canal Company, control nearly all the
coal lands. The two last named companies
pretend not TO be in the combination, but they
avail themselves OF the high prices, and
help 10 keep them up The effect OF this combination IL
TO force prices beyond the point they would reach
under the regular operation OF the law Of supply and
demand There has been little demand during the past
season. and business has been unusually dull. People
are laying In much coal formerly and seem TO
hope that prices Will fall before Winter 1t Is not prob
able this will be the case unless the Pennsylvania
Coal Company puts prices down. as they have done for
two or three Winters past When navigation closes and
their contracts all filed they may sell at
lower prices; but there is no certainty In the
matter The companies limit the amount Of coal mined
40 as prevent gut OF the market and keep their
prices, which they admit now remuneratve III this
he the case they should not put up the prices next
month aud whatever they add to present rates VIII De
30 much taken directly from the pockets of the people
The trade during the coming Fall will necessarily De
very brisk the usual supplies Of coal must be laid IN
and the business which generally extends over the en-
tire season. will have to be done in two or three months
OPPORTUNITIES FOR GREAT ABUSES.
The dealers with whom the reporter conyersed be-
leyed that the combination was wholesome in It's
effects upon the coal trade but liable to great abuse
The competition formerly INDUCED in by the many
small companies engaged in mining had caused 1nctua-
lions in prices which injurious alike to miners
dealers and consumers. The caused an Increased
demand aud higher prices; these led TO the opening OF
many new mines, and the forcing OF large quantities.
of coal into market and a consequent depreciation OF
values The fall Of the price would cause suspension
Of mining business. scarcity OF COAL anu
4, rise in rates The low prices Of last year
caused the ruin of many Of the Schuylklll
COMPANIES and the Philadelphia and Reading Railroad
Company which already owned large amount OF
mining land stepped in and bought up all they cOuld
obtain The earnings Of the railroad IN the past as
shown by dividends indication OF the pronls
derived by the Company from coal lands as the carrying
business Of Company has been very prohtaDe ior
number OF years.
THE PENNSYLVANIA COAL coMPASY's VERSION
The reporter next visited the offices Of the four large
conf panies which virtually control the coal trade
The PennsYlvana Coal Company owns the mines IN the
Ptston region. Mr.. Mead, Secretary OF the company
said that their business not fair criterion oy "hlcn
toiudge OF Others They bought much of their mining
lands AZ $50 an acre. which worth 1900 or sSOOO
mar acre and built their road when labor was worth
only 30 cents or 81 day, while now t Is worth three
times IA much They declare large dividends or course
as they expect 70 earn fair percentage
on tho present value OF tAeH PrVpoiJ'
,vithont reference TO it's cost price HIS
company was not connected with any combination out
II was not for their interest to put prices down Their
of operaton was TO lids for coal from their
customers and on the 25h o: each month"; 70 send out
circular naming price at which IL would De delivered
during the following month. II customer deollheu W
take IL at the price named, the amount awarued 10 nun
as divided among other bidders. the amount called or
being always largely in excess OF that mined Dy the
,omnany The present prices were not above the
verpe Of seven years past and were not hlgher han
WAS necessary in order 70 remuneraoe tne compae''
The losses last year amounted 20 several millions oil doi
lars and he could not understand why the companies
bad continued TO mine coal aud bring IL 10 ar"o' al
the rates which prevailed. He said there was popular
mistake also in relation the payment or uVhehds'
,ha dvidends paid one year represented the earnings
- the nreyious year. but weregulated companies tried
~ average their dividends, and III eoou
wear kept back part or ther earnings
For a bad year. He said that the acton OF the
po.dne Company, had in his opinion been beneficial
not only to the trade but to the general puDhc Inc
mali com panes formerly mining coal IN the schuylAili
don sent their coal to market in bad condition. ana
the quality OF that sent by the dlnerent Gonpaes s
varied greatly some ,,f % from the LACK Of any
standard to quality. Inc hsauIus ~ UV'"p aus
put coal OF the same u,v " "a we'll as price the
action OF that Company IN erecting unL ,i ~ od
es was in his opinion beneficial e. the public, whose
p,rests WAYS suffered from fluctuations n any staple
e continuance OF last years. low prices tOr one year
,er would have caused general suspension Oh mn-
vs1operations and sent coal I'D 10 douDe US p,eaene
mice The gradual Increase OF price throusn Dnc
onth was right and reasonable. lt was IN tue mature
~ penalty paid by consumer Tor conpeIus r r,io
Oh "ner n carry the coal during the season Inc
pinng and transportation operations are dVlded que
ennally among the months lnterVenng Dos"eJ ~
sbe o1enng and close OF inland Navigation; IL
H. rs are postponed until late IN Inc season te Soni
nsny must carry the coal through the carry mon US
he season and lose interest on properly anu aso sui
ss from breakage In the second handllng Ihe eAs,a
nrice IL an inducement to the CONSUMER W tst
~ Mead said that there would proDaDY % sV.aiI
ADVANCE in rates until November, aiter Wncu ,te5
anid remain stationary until the opening OF ndyBatoh
IN the Spring when they would fau 70 ABOUT JUG aao