The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-12-03
BUSINESS AT THE MINES.
SOME or THECA USES THdT IFFECT-
I'D COIL INTER LSTS
How the Recent Decline is Viewed nv Opr- |
rntors---A Prospect that Low Pricos will |
Prevail - Rival Companies ut Work.

Prevail - Rival Companies ut Work.
PoTrsvILLE. Pa, Nov. 30.-The prices
realized at the recent auction le OF the Penn
sYlvanis Coal Company's coal will tend to de-
press the coal trade at this end OF the lne as 1t
shows considerable OF decline from last
months prices, and will accordingly affect the
prices OF ~ othe- Goals. The general impress
sion throu. bout the coal region IL that the coal
trade Is, and has been for this whole year, un-
remunerative. 1t certainly Is to the mine work
ere, and consequently to the business people,
and the frequency OF individual coal operators
going into bankruptcy as we'll as the extraordi-
nary curtailmcut Of expenses by the companies,
lends additionI color to this impression.
Strangely enough. the causes OF all this are as
yet little understood outside OF corpor ition
circles, and 1t Ia to tho interest Of these to hide
them. 1t IL as certain as that two and two are
four that they are not OF very recent origin, but
date from the time when the great coal cOmbi-
nation was IN Its glory.
The war times gave an unparalleled impetus
to the coal trade. and both companies and oDer-
ators AT once set about to meet the demand, and
In doing 50 they disregarded the admOnitoy
signs OF IA final return to normal condition OF
trade and commerce. Thus they gave their
credits an unnatural elasticity, losing every ele-
ment OF soundness. The war wa succeeded by
felt more sevorcl, than in the coal trade. This
soon enabled the operators to realize the enor-
nifty of the burdens they had imposed upon
themselves and which they were unable to carry
long. The railroad companies found them
selves In condition which no lOnscr permitted
Of any rivalfies between them. Yet these rival
ries would nave been inevitable unless they
each took steps to secure absolute control OF
their respective fields. They had already cx-
tended their arms into each others dom lins.
mus the Lchish valley Company. In addition
TO its branch through portion Of schuylitill,
Columbia, and Nurthumberilnd counties, II I'd
projected a branch through the MdhanOy valley
the richest part OF the SchuA lkih coal region.
J Ills ana the encroacnmcuts u the PrnnsNl vauia
Railroad Comp my led Mr.. Gowen to organize
tue PGiiadelphih aud Reading Coal ami Iron
COMPANY. and to tho purchase Of upward OF
100000 acres Of coal land. since which time the
projection of both the PennsN lydni and Lehigh
Valley companies have ucea abandoned. THESE
purchases Of land were IN almost every instance
made exclusively upon credit. For hi, purpose
V Il amounts Of bonds were NEGOTIATED IN Eng
Ind ~ n rate OF interest ranging rom six to
seven per cent. IN gold. ana 10 say that our coal
holders not less THAN $4,000 or $50 oC0O IN
nualiy Is not oyorstating the truth. Inc adj
s3UOOO IL was s!72ji ~ in 1874. which wa, an
increase OF $50 3l6j1 the year 1913, and tue
dcbt l. still ON the increase.
CALCULATIONS THAT MIsCARRiED.
This drawing OF strict lines ~ dem lrcation
between the several domains left each company
free TO seek its own adv images. soon. however,
tie depressing state OF general trade caused
them all to feel more heavily the pressure of
their necessities. lhey found that they had
rcckoned without their host when they con-
trlcted the neavy obligations for interest and
dividends, and loaded themselves with numcr-
Gus Improbable side concerns. which were COB
hled w IN Hush tunes for tue sole purpose Of CON
trolling the CIrgying trade from tho respective
regions. lhey now began more than ever to
complain of the LABOR organizations. whose re-
slstanco to reductions OF wages I'D to frequent
stoppagrs. which were deemed hurtfu u the
operators, consumers. and carrying CON panies
the marhe $, aud LABOR in the coal regions, the
c'mblnatlou was formed. The managers were
not long In fndnz out however, IN 4 to Keep
mp prices aud the steady continuation OF pro-
ducuon too, was bigger jOo than they had
uarg aimed for. ana before slN months Of the first
year of the combination passed over tnelr
heads they adopted the very policy they
lieving that with the entire trude-pro-
uuclng, shipping and seiling-in. their hands they
would De abe to manage It win pront TO them
selves. Again they had reckoned without their
host, for tue people, seeing through their de-
signs refused to be longer made the vlctims OF
eXtortion Let the public compare the prices
railing ia New York during the years 1873, 1874,
1915, and the nrst IL u 1870 ined from
the monthly circulars OF the companies -
amounting 60 an average Of s. Der ton-with tue
average Il l''s, the last ye T before the co,nbi-
at present OF S2.9!, and then say what the oft
were endeavnriug to cheaper coal. MS worth
Inc resalt Of TINS seln II policy was that the
etoupages at tie mines we're more frequent than
ever. having tue fold effect OF diving the
Ing the eXchequers Of the corpo atoms.
NOW CoNDISArIoS WORKED.
The effects OF the cpmbinau N policy are best
withs nnuins AN Increase Of prrnts for the nrst
five months of the present year of over two NIL
! lions, declared itsclt unable to pay any dvi.
! 1913, and LOSSES entalled bv frequent stoppages
VIII essened the carrying trade and caused
/ the expenses TO eat NJ the usual reserve funds
/ 10 pay former diHdonds. This was the oest re -
/ son yel gwen for the bursting # the cpmbina-
/ ton. h there was SIM another, Col. Rom
/ scott and judge Asa Packer. controlling the two
! ntrA corpuraiiOns Of the anthracite coal
! nalI-. seeing the weakncsse II the comhin ton.
wrought their ntsnes around the members OF II
! IN such way rs not only to REAP present ben
/ etts from the oucnlng left to my outside cor
! ior ,tiaHs hy she Limitations liked ty III" com
] lluaIi III upon IT'S members, ilt also To fin .llV
| cru pie them seriously. Inc various branches
! these two managers had projected into the do
! mains VI the utn rToAd-. as above 5 ated. were
! only suspended "a. on the latter coming into
control Of all the Lands. ana thus leaving no
TINT they val be uetmancntiY alb ndoned i not
among the Prod iuiutics. Previous TO the in
/ could nave gathered trade from the opetat ors
10y openly competing with the othtr companies
| for the carving trade, tut now theN must opcr-
! ate against lar greater power hecau'e
| cf TINS concentration. single hanied neither
Of them could ace .hplish much IN
/ great deal. ihat theN are mus united l. no
/ longer luttcO dnNWn re. In I e ~, now tue
/ common belief In the coal regions thli scott
/ aud Packer are operating tor tht control Of the
/ entire anthracite coh fields and Tat their sue
! co.+ j. only aIeotpn OF time. | am not 80
! well convinced ~ this. however, rs | would no
] ltI scott succeeded with hi. IcXd, pa'iac SUBJ
! -idN schemes. ihe subsidy would have given
! him a hold upon the money market which
| would have be uselul to BIN aud hrs 90 diu-
tors IN more Gircctiuns than the Tex - lacinc
| railroad, beside relieving him If more OF less
eWuirrar-luoUt In mat direction when must
! l.iuitr Tim in nj. other schemes. Hence Judge
! Pdcher becomes usutIl hlly 10 him at nome.
| lhe Judge has not SO many irons In the IRE, Is
! rich, ana appears To be n superior railroad I'M n
/ irnu 90 10 Ter cent. tiNldcud~, ltWlthstund-
] in- the constantly augmented dent ~ ms road
aud ne Is thus able to keen up the stock, " hich
! hA. not suffered any Nrry material decline,
! while all the other coal roads have suffered So
vercly IN That respect.
TIM TRADE Al PRESENT
This general review renders "A proper und r
| standing Of the coal trade M present perfectly
/ easy. II shows tnnt the rvhllies between the
great corporation, are not likely to coas,, and
| beng unduly forced NJ. The Reading company.
for instance, has Instituted tue policy If fun
| production amt shipments, and extraordinary
curt tlment OF expenses. Every hand That could
at all tie dlspe sea with has been DISCHARGED,
and the WORK either showed on the remaining
| hands Or altogether neglected improvements
| requiring lIfst Outlays Of money are SUSPENDED
| for the time bri1s, and attention gwen to the
simpla production uf coal rs cheaply as posi-
! bic. 10 avoid labor truubl rs, the buss system Of
regulating WA q 10y the price Of coal IL retained
| Hence there Is not much danger Of stoppages
| from that direction. aud. unless coal falls very