The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-04
THE COAL MONOPOLY.
A Herald Reporter Among the Coal Msn-Thei,
Views On the Combination-A Uniformity of
Supply and Demand the Object An
Equalization Of Labor Throughout the
Year-A Gradual Increase from
Spring to Winter - The Re-
taller and the Consumer


With the rapid increase OF our population, the
growth OF our great cities and the destruction OF
those immense forests which covered the land In
the days OF our fathers, the question OF due sup
ply OF fuel for the practical uses OF life and at such
prices to make it accessible to the poor, is each
year becoming OF more interest. In England the
labor question and the great depths OF the coal
mines, which have bean worked for ages, with
other minor causes have so enhanced the cost OF
production as to advance the price OF coal to an
unprecedented extent, and to cause the fear that
the time may not be far distant when to 'carry
Goals to Newcastle" will be regarded legitimate
commercial transaction, and not an evidence OF
folly. Fortunately for us neither the labor ques-
ton nor the depths to which our own mines have
try. and If the price of coal is to be advanced to
point when 1t Will become
A BURDEN TO THE POOR
too grievous to be borne, 1t can be attributed to
quite different causes. AS the recent cOmbina-
ton between the railroads and the great mining
notwithstanding gigantic monopoly-tO
shape and control the production OF coal and the
placing 1t on the market and consequently the
price to be paid has excited considerable feeling
and comment among The people to be anected by
1t, HERALD reporter was yesterday directed to
visit number OF the companies and dealers for
the purpose OF obtaining their views upon the sub
ject He was received by them all with entire
courtesy and frankness OF speech, though in every
case requested not to make public the name of the
person furnishing the information desired. On
stating the object OF his visit to an extensive
wholesale merchant the latter proceeded at
once to remark :-"There was time when
the price OF anthracite coal depended on the sup
ply and demand. do not consider that it does so
any longer. There is say 000o 900 tons OF this coal
taken out and placed on the market every year.
Possibly this might be increased one-hair do not
think IL could be doubled. II has been found SUM-
cent 10 supply the demand The combination to
which you refer, and which Is composed of the
Reading Railroad Company, the New Jersey Gen.
trial. the Lenigh and Susquehanna and the Della
ware Lackawanna and Western Railroad cOmpa-
MES, and all the great coal companies such as the
Reading Coal and Iron Company, the Delaware and
Hudson Canal Compuny, the Lehigh Coal Naviga-
ton Company, the Wilkesbarre Coal and Iron
Company and the Lackawanna Coal and Iron
Company, Is for the purpose o. placing this
COAL ON THE MARKET
gradually during the year, and to keep the capital
months as has been TOO often the case Hereto
fore, the immense machinery at the mines and the
with the employees, necessary in those seasons
when the demand for coal was the largest were
comparatively idle at Their times. The annoyance
and Inconvenience OF thus can be readily appre-
ciated. The object Is to keep steadily at work
throughout the year, and, to accomplish this, the
combination must be able to control the prices
every month In the year, In order BY advancing or
lowering it, to equalze the demand. With the ex-
listing habits OF the people the desire is to induce
them to purchase IN the spring the supply Tor
the winter, and. therefore, the price OF coal,
as you may have observed, has increased
ten cents q ton each month since April last. The
advantage or the desired equalization would be to
keep botn the railroad and mining companies reg
| ances and nconventences, especially with the
| miners and other workmen, and would give them
their money for their coal, which lies ut the mines
during the summer, several months earlier.n
| ''Do the merchants see no danger in tha future
in such combination ~ asked the reporter.
| 'NOt any. The public are not threatened with
| being plundered through the combination. The
object Is to prevent coal sinking below a remune-
rative price, it has heretofore; but any attempt
at raising it exorbtantly would defeat lis own
ends very sOon There are, say 20, 000 600 OF tons,
OF anthracite coal taken out by these companies
| advance 1t So per ton over legitimate price.
There would be s4O,0OO,oOo to be divided, and the
| temptation to undersett or In some way to obtain
| more than q proportionate amount or this vast
| sum would not be resisted and the combination
by these companies is similar to that of the IRON
mongers in England, who decide absolutely upon
the price OF iron, changing IT from time to time as
| they think proper; but no charge OF rObbing the
| publ G was ever brought against them"
What Is the advance on coal per ton since last
| spring." here inquired our reporter.
"From 90 cents to ST." was the response. ut is
higher than it was last year too. In December OF
1872 Lehigh lump sold at So as against SIS IS last
month; broken for 81 IS, against S. 7OS stove,
So TO- against SIS IS: chestnut 81 Is, against SIS is
| The last the difference OF 81, which Is much. do
regard these prices as extravaganza. The prices
| OF 1872, which grew out OF competition ana the
sale OF many thousand tons at auction, were ruin
| GUS to the companies. The average price at tide
water now Is SO 65. This is the maximum, it will
| not advance further"
courtesy extended him, the reporter withdrew
and wended his way to the Office OF the great
0ns asa
| Lehgh Coal companies. Herein the Honey
! brooke Company has leased the lands OF
! barre, thus forming the new corporation which
controls most OF the lands In the Wyoming Valley.
celved by the Secretary, but no new facts in refer
! ence to the combination were elected. The new
company has between 10000 and $4,000 acres OF
tons Of coal yearly. The consolidation, AS stated,
| was for the better organization OF the inter-
that 1t was designed In any way to affect the price
of coal. Others were called upon for their views,
| which were, generally speaking, freely given, and
were confrmatory oil the statement that this prime
article OF fuel was not to be advanced extortion-
| ately-lndeed, that 1t would
ADVANCE NO FURTHER THIS WINTER,
| and until 1t falls to the legitimate spring price,
when, under the influence OF the monopoly estab-
lished by the combination, the price win increase
| a stated amount each month, as heretnbeore re-
| ferred to and explained.
The next and final visit OF the reporter was to
| the retail deaer-he wno comes Immediately in
| contact with the consumer upon whom the bur-
| den ultimately falls, and who knows his habits
I ana wants Ill tnfs COHHcctlOu. Salu New nat
we most desire Is uniformity as base OF calcula-
ton, If for no other reason People will not buy
their supply OF coal II the price has fallen within
few days, as they are always quite sure 1t is going
| lower. They are ignorant OF the agencies and in
nuences affecting IL, more so than OF any other
iicle OF general consumption. and SO they are
| always expecting omethfng Which will rebound
! to their benefit and seldom buy until prices are
| tending upwards again. The combination OF the
| railroad and mining companies has advanced the
prices somewhat over last year, but there is little
| difference to the consumer Let me show you
| my books for the past few years. In December,
| $780, coal began to advance, owing to the strike
| among the miners. Doubtless there was plenty Of
| coal; but the companies would not send IL for
ward. Well, In April 1871, 1t was selling at $13 a
ton. Then 1t began to go down, and in the winter
OF 1872 1t retalled at ST. IL then declined to the
proper base Tor starting price in the spring, say
ST, and TO IS and So so, again advancing TO So In
september and to 81 and 81 so during the winter.
IL Is now selling at S7.n
'St You pay mole, do you not ~ asked the re-
porter.
Yes. I paid 81 80 last season, and at The same
date this season S. 90; but the retail prices hold
about the same There is a little difference among
the dealers. Some charge % cents or 50