New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-27
yp coVEy ON THE COAL TRADE.

Mr.. COHEN on THE COAL Trade
We are happy to find that our views in re-
card 10 the Anthracite Coal Monopoly are
countenanced by no less an authority than
Mr.. Franklin B. GOwen, President of the
Reading Railroad Company. Mr. Gowen was
placed at the head of that corporation four
wears ago, and some years before that had
been an operator in coal. He is therefore an
excellent authority. In his report to the Read
ing stockholders, January 0, 1871, Mr. Gowen
makes an estimate of the natural average
price of coal at Port Carbon, a point on the
Reading Railroad about 90 miles from Phia-
delpha. He mentions it as a wel-known
fact, chat if all the coal fields were produc-
"ing largely, the average price OF coal at
"Port Carbon would not exceed from 81 % to
"$2 80 per ton" Upon this he bases an argu-
ment for the reduction of the high wages
then and still paid to the miners. Wei,
wages were reduced, and actual experience
has shown that Mr. Governs estimate or prices
under competition was none too low. But let
us compare Mr.. Governs estimate with the
present monopoly prices. On the first day of
each month, in the Schuylkll region, four or
five coal mines are selected by lot, in order to
coal at Port Carbon for the month preceding
which is employed as basis for wages One
of the mines operated by the Reading Rail
road was thus designated on the LIST
of August, and the average price for coal
from this mine in the month of July
was found to have been S2 so per ton, against
50 80, the mean of Mr.. Governs estimates in
January 1871. On the Goth of July the Read
ing Company added 10 cents a ton to its
prices, and another 10 cents on the Goth OF
August, so that the average net price at Port
Carbon of the produce OF that mine would
now be about SO a tOn-an increase OF u
cents, or 80 per cent, over what MIR. Gowen
considered fair price in 1871. To this prob
ably further sum should be added for in
creased charges for transportation. But in
1871 the Reading Railroad was not at the
head of the most gigantic monopoly of mod
ern or ancient times.
In his report to the stockholders of the Read
ing Company, Jan. 10, 1870 Mr.. Gowen said:
off supply of cars sufficient to carry away
4" the product of the mines is hereafter MAIN
"tained, and the inducement of moderate rates
"of transportation offered TO the trade, the Com
"pany can rely with confidence upon the in
"diuiduaI enterprise and energy of the coal ope-
orators as sufficient at ali times to furnish a
"large and constantly increasing amount of
tonnage In his report of jan 9, 1871, he
said: "Another great evil results from the at
"tempts of the Worhngmen's AssOcia-
" ton to enforce the short-Sighted policy Of
"raiSng prices by stopping the production Of
"coal forgetting that high prices and uncer-
tainty of supply ,oW drioe array buyers, force
manufacturers TO turn TO other fuels, and
"preuent the natural increase of demand Which
",could result from lOD prices, and which Mould
soon supply certain market for any tenn
"pora,y ouer-production.o These are sound
views, clearly and fOrcibly expressed. But at
that time Mr.. Gowen had not made himself
to Individual operators and consumers what
Napoleon was to the trade and commerce of
Europe.
But let us hear Mr.. Gowen on that terrible
year, 1872, which, as We are told by the apol-
Ogists of the combination. was well nigh the
ruin of the coal business. In his report to the
stockholders, Jan. 10, 1873, Mr.. Gowen says:
"The largely-increased production of last sea-
son was all disposed Of, however; the mar
"ket was better during the last two months
a. than at any other period of the year, and it
ais believed that the stock of coal on hand
"at the close of the shipping season of 1872
"was no larger than that held at the close
"Of the previous year." He then goes on
to show that the average annual increase
in the consumption has been nearly ten per
cent per annum for the last ten years that
the great activity in the iron business will
furnish q market for increased supplies; that
| an unprecedented number of new furnaces
have been built, and that railroads have been
extended to the lake ports, where they have
opened new markets; and he gives other ex-
cellent reasons why the directors of the Read
ing Company had increased the equipment of
the road by adding one thousand eight
wheeled coal cars, in anticipation of great
increase in business. Indeed, after es-
timating that three million tons more
of anthracite coal will be required in 1873 than
were sent to market in 1872 he says that
it is not unreasonable to suppose that it will
"be difficult to produce this year any quantity
80 greatly in excess of the demand as to
depress the market to any considerable de-
gree" Then what Imaginable reason had
you, Mr.. Gowen, for ganizng this pernicious
monopoly Your road was earning easily ten
per cent on its stock. In your report of 1870
you say that while only S1O,6s3 $50 had been
distributed in stock dividends, Sl7597.259
of actual net earnings had been invested
in permanent improvements. Ii the four years