The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-17
AGIGANTIC MONOPOLY.
A Combinati ton TO Keep MP the Prices Of Coal
Its Results.


To THE EDITOR OF THE SUN-Str: The
monster coal monopoly Is now In Its fourth year.
The combination consists of the following com
panies Delaware aud Hudson Canal Company,
Delaware and Western Railroad Company, Penn
sylvInia Coal Company, Lehigh and wilkesbarre
Coal and Iron Company and the Lehigh Valley
X iilroad Company. These corporations COM
bined form the monopoly, representing capital
OF OO000,OO0. Their object, very modest one
as stated by themselves, was merely to give a
more healthy tone to the market by selling their
productions at a stated price for each month
the year round To do this, each company was
allotted a certain quota to mine, thus causing
all artificial supply.
This regulating the laws Of supply and de-
mand has been the most difficult part OF their
business. as they never could foresee when a
falling on Of trade would result. Even with all
the structures imposed as to the quantity to 10
mined In any month, a staenation Of sales would
ensue. The consequence was, that every stock
point along me line every shipping port, every
aud had to remain so, as was the case about q
month ago. One railroad company alone had
emergency, II was resolved that mining should
be done every alternate week. Even this was
qsa TOO Week uSh II, ne Ss
third time In succession, and this II is hoped
will lower stocks considerably.
The advance OF the first OF this month was
made with the view of giving an impetus to the
trade, but so far as the trans gctions recorded
nerfect fire It is fTrHeT proposed s%O to add
10 cents more for August prices current, on the
ground that stocks will be very low by that
time and that the supply will be something be-
low the demand, and buyers will be expected at
that time to make "A rush on tho market to get
up stocks for the winter as well rs for the sales
to be made to house consumers, for their usual
supplies, none OF whom have laid In as yet.
one NAV travel miles about the city of New
YORK without seeing more than single ton
dumped before any door. Many consumers
refuse to buy moro than from hand to mouth
who were In the habit fla, Ing In their yearlysup-
ply during the summer m onths. Others say, with
some show OF reason, that they will purchase
as they need, as coal VIII not be any dearer this
year. The combination may advance as much
as they may have mind to, but the retailers
cannot get the advances. Money Is scarce;
there Is no combination among the retail men,
and plenty OF keen competition will keep their
prices sufficiently low.
or course there Is nothing TO hinder the mo-
nopoly from regulating the price to $40 per ton
next year. All that has TO be done IL, at the
first meeting for settling prices for the ensuing
Ing figure shall be SO, and tx the monthly ad-
vances so that December and January would
reach SIS per ton.
The private mining enterprises all through tho
Schuylklll region are shut out from CONT citing
here, as 1t is necessary for tuem to use some OF
the monopoly roads for transportation the
whole or part Of the way. A tariff OF freish and
toll Is imposed on them, so that they must sell,
OF necessity, at or about the same prices as the
combined corporations.
This state OF things may last long enough
Just 50 long as railroad companies are allowed
To travel out Of their legitimate business, trans
portation, aud become monster coal companies,
with the will and power to form trade monop-
oily. In some branches OF commerce this could
be checkmated by consumers refusing TO use, OF
at least to buy from such a monopoly But coal
cannot be dispensed with either In winter or
summer.
The only hope OF breaking up this gigantic
corporation seems to be the construction OF an
other Dad FROM the Scnuylkil districts to New
York harbor, that shall be free to all, without
power to lease, charter, or sell the road to any
OF the present coal and Railroad companies, and
further that the company shall have no power
to acquire coal lands for mining purposes. Com
petition would tx the tolls and freight low
enough.
For present relief It would be a good time TO
try the experiment OF little tree trade I'm this
article. by abOlishing the duty on Canadian coal.
That done, at present freights, 1t could be sold
ton the wear round. II manufacturers had to
depend solely on anthf acite for steam. as house,
holds have for their heating and other purposes,
nothing would have hindered the monopoly
from putting on tho screws long SINCE But
when hard coal goes beyond certain price, the
to a very great advantage.
But the coal monopoly, besides being the
cause OF introducing md opening up the great
soft coal lands and bringing their production
into successful competition with anthracite,
has been the means of compelling the users OF
steam, in casting about for relief from high
forced prices to hit upon the utilization OF coal
dust, which has accumulated In thousands OF
tons on tue DUN ing grounds. By the use of a
newly invented blower. the dust Is made to do
the work OF the best steam coal at saving of
about nlty per cent. The blower Is put up at a
very triiing cost when compared with the cost
OF the regular article. A. ID. N.
NEW YORK, July 10.