New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-12-31
CHEAPER COAL ASSURED.
COMBINATION TO CONTROL THE MARKET.
CAUSE OF IT'S FAILURE TO KEEP UP PRCEs-AN
EFFORT TO BE MADE TO STOP PRoDUCTIoN-CoAL


iFRoM A STAFF CORRESPONDENT OF THE rRIBUNE'l
MAUCu CHUNK. Penn, Dec. 29.-lt now
appears certain that tho high price OF anthrace co"
cannot he much longer maintained An early reducuoh
Of q probable, followed by afurher falling OH I'D
March, The movement began few days ago amoug inc
operators IN this the Lehieh, region and VIII soon eu
brace the whole neutrality-suspicious. section IO-nof-
row an adjourned meeting Of the operators IN TINS
region will be held, when the reports OF Com
mttees appointed consult with leading companies 10
the schuylkin. Wyoming. and Lickawanna diS-
tricts will he received and some action looking 70
ducton OF price and simultaneous reduction OF wages
is expected to taken. Tho general opinion S that
considering falling of in consumption, the distess
among manufacturers and the general bard upes o""
Is too HIGH and must come down. Operators uo ho'
admit that they have been making large pronts' lucy
say that wages ere unreasonably high aud trans
pOrtation rates cxobant, the miner ana tne raroau
absorbing most Of the profit coal am inclined 10
believe the operators right, In the MAN, some
whose cullieres favorably situated and cheapy
workod doubt made worry heavy pohts THIS year
but the general average IN this region mas not au'
confident exceeded 4Olcents ton. Many coeres nave
not made 20 cents the season through the reader
WHO saw my letter from Potsvlo about fortnight ago
will remember that the conclusion arrived ~ WIN II"
gard to the schuylkl region was that notwithstanding
tho high prices rlug this year. the business OF mining
anthracite In that section had been only moderately re-
muneraive and that the chief part OF the proh hau
gone the railroad company which carres the coal 10
market Tho state Of affairs appears to prevail
here Leaving the question OF wages statistics OF the
cost of mining and rates Of transportation for future
letter will discuss now the relation Of the railroads TO
this section and briefly the which have lrokcn
down the coal market aud led to the movement for re-
ducton Of prices.
RAILROAD CONTROL OF THE MARKET
Tho Lmgh region has the advantage OF Two CON-
pctng lines of transportation to tdewater-the Lehlgh
D,,o Of M
The lines Of these roads parallel all the way up tho
Iehigh Valley and the mountains to WikcsOarrc
and With their lateral branches they drain the whole OF
tho Lchgh and Wyoming regions The central roau paS
a through Inc to the shipping points near New-fofK
The Valley road extends 10 further than Bastoh' pu -
rapidly constructing line from that pace W
Perth Amhoy. An outlet to Philadelphia ~
afforded both Companlrs by way OF tho North
Peunsylyan!a R,ilroad from Bethlehem. In addition to
these rail facilities, there IL water transportation py
canal from the ccutcr OF the Lehigh region VI Ic"n
Haven all tho way TO tide water at Ncw-fork ana fna'
Gephia The water lines are however, no checH on tho
rate of tolls on the railroads, because the canals arc
owned or controlled by tho railroad companies. Inc
Labrh Canal irom MaIch Chunk to CASTOR. IL in ihe
possession of Central Railroad Company ana also
the Delaware Division Canal from Easton 10 BrlSto'
near PhIladephia while the Morris Canal from EIsoh
TO point near New YorK, il the hands Of tho Lchgh
Valley Railroad COmpany Canal transportation ~
| made higher instead OF lower than RAIL- De-
cau.e the coal can he taken in camtl-hoats
directly to NcwYnrk wharvcs white 1t must be tran
shipped il it gocs by rail- In considering tue ira hpo'
aOn question tile canals must therefore he reRar"ch
as auncts to the railroads. 10 must also DC porno
IN mind that The railroads, while competing Tor TONNAGE
in no case cut uIGr each other in tolls. Rates OF ton
TO all shIppng points fixed By combination or inc
five TRANSFORMATION companies centorng III the anthta
cIto region-the Central X IIroad OF N1w-JerSey the
Delaware, Llckawanna and Western Railroad, tho Dali
ware and Hudson CanIl Company, tho L3high valley
| Railroad Coilpauy. and the Philadelphia and Reading
Railroad Company. Tnis combination, formed ABOUT
two years ~ got into complete running oFdef
last snne s purpose not alone To secure for the
companies composing hi2hcr rae Tor cfi?ihg c"a.
IL conceived bold idea Of 80 limiting the ahoht o
anthracite eeIt 10 market az to create anu h'u'ah
artiicaily h!Gh prlccs
SHORT CUT TO RICHES.
The lions share Of the profits arising from these bigh
prices was course to go to the railroads. but u was
part OF the programme to top tho runoi~ competition
between operators, which had made 1t more hazardous
to invest money coli'ry than TO lay IL down upon
gambling table. Operators woro to have rcinunoratiVc
r,tos minrrs were to get the old prices for work. no
matter how much wage. fOC other kinds Of Labor might
decline; InnuCy wds to DC plenty, anu eNcL9-
hodV was to bn prosperous and July in tho
anthracite region however pnchg tho times mish hi 10
In the outside world. 1t was beautiful pln ana ap,
pearcd quite praccahc No anthracite can get ont OF
pennsylvania market unless tic companies III the
combination carry H. Outside OF u rarrn| FTP ,T on
country extending from tho SuSq1rlanna above llarrs
burg ENTHUSIASTICALLY to Carhond!e there vs. no Eoou
mt
STATES, and especially The great cllh ol i''W W.
adcl nina and Boz ton, are dependent upon HhthTde ut
fu, The article will Dcara price rs high as c'h o' put
ON il without driving cOusucrs To- the uSc or lho fTS
desirable hilumnOls coal, WHEN are III douoc u'"hu
mncI less heat to Tao ton, aud having to be to
brought more than double the distance 10 rc"h
Im rnp"ao couc"i that i; would be posOo
hoi the price OF anthracite ny to from 81 TO ~ 0n
general laws OF competition and OF supply ana dcnai
An went swimmIugly tor while. lho srG'ho
pl ag &c
and light have kept on working nlrlniIcY mln no,
sclislness aud gree which chararcrzo corporations
n. we'll as individuals, iutcrcrcd with IT, The success
Of tue plan depended entirely on Keeping inc nalEct
rather srmnti suppcd and to insure this 10 was agreed
that each company should ship certain huihhSr CT
tons monthly 10 tide.water aud no more: some
OF the companies were large owners OF mines ana wnrn
prices were ru up month after month as n" SEASON
l Gnt eoa as a0 we'll as on their induced
them 10 send forward more coal than tho st'pua.oi
ton lei on ncayiy Of tue sopPage or inr;
naces mills. factories, aud even II the amount OF
coal greed upon had bccu shipped, 1t would nave oeen
too much Tor the parket 10 absorb.
FAILURE OF TIE SCHEME.
A CORPORATION called the Pennsylvania Coal Company,
owning extensive collicries at PttstOn, aud having
favorable transportation contracts while agreeing ~
abide by the combination prices, refused TO limit pro
5uction This Company accused of having over
stocked the market but 1t probable that all or nearly
ali OF five continuation COMPANIES began 20 sSpteu-
OF disregardng the agreement The sliding scale OF
prices, going up from month TO month. was nOiia Ivy
operators began to be alarmed aud ieeiDR ot Sahte
oi Dem seized those VINO had heavy stocks on land
Inc December prices of anthracite at Ezabethport,
Ho6oken. and Port johnson, as dxed by the LeIhgh
Coal Exchanges, were as fOllOws Lump 20 80
broken SC 80; egg, 3o stove, SO As chestnut - 90
These prices nave rarely been obtained leading urn
here showed yesterday letter from their New
York agent dated Dec 81 stating that he had sold 100
TINS of egg aI IS 80 aud having refused IS 10 for 500
tons of broken just asceriued that tho person who
had made the offer had bought elsewhere Tnls letter
shows that the Board wholly dsregardcd, and
are a dollar q above the selling prices
An excellent authority estimates the total amount OF
coal in first hands 100000 tons. No combination Is
this quantity from bear