Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-05-19
THE PENNSYLVANIA COAL MONOP.


taxing INTO consideration the startling
and unprecedented monopoly which
literally owns that region under color
of law. Chief among the benefits re-
sulting from the election Of a Demo-
cratic Legislature, last year, is an Off
cial investigation, now under way, into
the operations of this extraordinary
corporation, generally known as the
Philadelphia and Reading RAILROAD
Company.
The Pennsylvania coal region ex-
tends over an area Of 40 square miles,
the greater part of which is either
owned or absolutely controlled by this
company. Until it fell into the hands
Of Mr.. f. B. Gowen, who, from a third
class lawyer, has developed the most
INSCRIPTIONS executive abilities, the
affairs Of the corporation were in bad
way. The coal mines had been opened
and developed by various private par
ties, but they all depended on Governs
railroad for transportation to market.
Gradually be purchased a controlling
interest IN one mine or another, buying
the stock cheap by giving extra facili-
ties for transportation, and deprecia-
ting the value Of other mines by with
drawing such facilities, until they fell
an easy prey. In this way over one
hundred collieries gradually became
the property of the railroad company,
and being worked by it, the screws were
put down the more severely on all
freight, except its own. Its coal
always had the preference IN transpor-
tation. Other operators could not OBJ
tain cars when they wanted them, or
the cars were sent in such numbers
that they could not be loaded; thus
establishing a pretext for deny
ing car accommodations in fu-
ture. Another mode Of harrass-
ing small producers was to send
their coal for ard in such quantities
that 1t could not be unloaded, thus rem
dering them liable to fines for deten-
ton of cars. But these devices were
not enough; the Reading company
established coal-yards IN Philadelphia
and other cities, which were kept full,
while those Of rivals would be kept
empty by the Withholding of cars for
weeks and even months at a time.
Picking its own time to raise this block
adc, and allow rival coal to reach the
large cities, the railroad company
would suddenly reduce the retail price
at its yards to bankrupt the rival ope-
rators.
Without going further into the
peculiar tactics by which this unscrup-
uIous company has acquired control Of !
the coal region, we need only say that |
It virtually rules the price Of this IN
dispensablo article in all the country
dependent on Pennsylvania for a sup
ply. a legal fiction, called the Laurel |
Run Improvement Company, was or
gained to facilitate these gigantic !
operations, and experienced no difficulty
whatever IN securing a charter from
one Of Cameron's Legislatures. OF
course it was the Reading Company
over again, with the same President
and officeholders. The combination
controls no less than Sl26,O0O,O 600 cap
ital, some S6O,OOO,00O Of which was
borrowed in England just before the
panic at 10 per cent. interest In gold.
To pay interest and dividends on this
enormous capital, the policy Of the
management must be grasPing and
grinding. The miners wages must be
reduced as much as possible at one end
of the line, while consumers are heeced
at the other, and when the demandfalls
of. the miners must be driven to the
madness Of strikes" IN order to de-
crease the supply. All the States east
of the ATeghenies, Including manu-
featuring New England, are interested |
in the breading up Of this unparalleled !
monopoly. The United States EooHo-
mist estimates that for several years !
past this combination has compelled |
the people Of New York, New Jersey |
and the Eastern States to pay an av-
crage Of s. per ton more for coal than
it is worth. The feeling against it in
Pennsylvania Is intense, and unless the |
Legislative Committee now sitting de- |
vises some means for GRIPPING its
power, the public disappointment will |
De bitter. 1t is thought Legislative |
action can be lad, limiting the railroad |
To its legitimate business, that of the /
carrying trade, and compelling it to
treat all customers alike, while the |
charter Of the Laurel Run Improve
ment Company may be annulled as a