The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-23
It's Dissolution and the Circumstances
Which Brought 1t About.
HISTORY OF THE ASSOCIATION.
The Views of Prominent Railroad Men
on the Situation.
RESULT OF YESTERDAYS MEETING.


day, O'Clock, the office of the Delaware and
Hudson Canal Company there demand
made upon the Lchigh Valley Railroad Com
pany to indemnify the other associated
panics for breach OF faith, and enter
for the future maintenance Of their ratio
This refused, expected and the great coal
combination fell to pieces, each company declaring
that in future would be governed solely by what
officers should believe TO be its best interest the
failure OF these united and powerful companies 10 hold
together their monopoly strikes a blow al all such
organizations having for Their object the control OF
the neccssarics OF lie and the making of laws which
have relation to those natural ones Of supply and
demand Under the old fashioned system the btumi-
coal has been carried without any dicta-
IRON Board OF Control and about is, 600 600 tons
Is annually consumed in tho United States, and this
consumption has Of course, affected the sale Of anthra
cite to that extent
THE COMBINATION.
Early in the year 1872 Philadelphia and Reading
Railroad Company procured tho passage Of act
authorizing the Reading Coal and Iron Company TO
and work coal mines and lands in Pennsylvania.
This name was only another style for the Philade pha
and Reading Company. The new company during tho
year expended tae 500, 900 ooo the char
ter the schuykll region, and had dominant inter-
est colcries producing 100000 tons yearly.
The company after proposed the proprctors of
the remaining collcres, which were then producing
in tho aggregate 3,2i2 600 tons that they should COM
bine with them and receive certain per ton Tor
their coal This proposition at first resisted, but
ultimately acquiesced in before the end Of the year.
and it authori,atvcy announced that thereafter
there would be monthly meetings Of all the coal pro-
ducers OF Pennsylvania both corporate and private,
at which the price OF coal WAS TO be fixed to suit
their interests In January, 1875 the first Official
| cuiu oil iur IN
! In the interests OF the l. high Coal and Navigation
| Company, Delaware e, Lackawanna and Western Roll
road Company and Wllke- barre Coal and Iron Com
! pany The Pennsylvania Coal Company, Lehigh Val
| ley Railroad Company ana the Reading Company up TO
that refused TO JON IN the new movement Tho
schedule adopted by the Delaware and HUDSON Canal
Company Tor February in The same year Ia pursuance
OF the contracts made by the companies to
monthly showed an advance oi thirty cents ton At
the ale OF coal made by the Delaware lacka-
wanna aud Western Railroad Company on the 10Th OF
January, 1873 lhcre was an average increase in tho
prices , over .no.c "a me p,e, ,n aonh , .,
said, reporting the SALE that the elect OF
the late movements to consolidate the interests OF tho
large companies was becoming apparent IN tho
creased rates obtained Tho increase IN the price of
coal under the combination during The year 1873,
about cents Ton. In 1874 aud 1918 the conblna
| ton gathered strength Occasional concessions OF
prices made, but the average OF tho years
| was July maintained.
-Four companies own their lands Is well as being
carriers OF coal and two-tbe New jersey Central ana
Lehigh Nalley-are simply nsporers the operators
ro,us named As was reported IA tue HERALD al the
l,,uc there was meeting of The Board of Control he'd
In the latter part OF July, at whcn comp amt
made tina, ,hc Lehieh Valley Company had exceeded
quo.a and IN order TO cxtingush this excess II
| lions during two weeks in August. TINS agreed
to, aud IL was the violation OF this agreement
which led TO the rupture yesterday. Yet IN
justice tho Lchigh Valley II should be
| SAID that the company has always claimed
that "a transporter 1t owed no allegiance the
bInalIon anu would not rccedc from the position as
suincd carly IN the ycao Wit that II had no right as
action Of the coal operators on ITS limo SAID TO be
entirely independent OF The railroad company.
| 1t will, therefore be seen that the above road
the immediate cause OF the rupture
PRESIDENT pIcKsoN's VIEWS.
To ascertain the views OF different members OF tho
combination HERALD reporter yesterday waited on
several prominent officials connected with IT, The
gentleman brst President Thomas Dickson, OF
the Delaware and HUDSON Canal Company. He was
also President Of the late association. In
various questions he gave the following information
It's true as You have heard that the coal combina
ton is broken the Lenigh Valley Railroad no, having
fu.lcd agreements with Us we were obliged to look
| out tor ourselves. Everything was harmonious and
pleasant hereafter all will work Independently the
Reading, Delaware Lacsawanna ana Western and our
own company, the Delaware and Hudson Canal, Will
advertise IN the afternoon papers to sell at pubic auc
ton on Tuesday, August -, 500 900 coal. or
prices viii tall temporarily. but think the re-
suit viii eventually b. TO consodatc the power OF the
strong com anies and put the weak corporations
bankruptcy. You can, however, get more exact
OF the situation by the following resolutions,
moved by Mr.. Gowan ana seconded by Mr. Hoyi,
which were adopted at the meeting oil the Coal Com
binatoD this aiterncon:-
Whereas prior of this Board of Contro
for the current year committee, consisting OF Thomas
Dickson aud y q. uowan mad conference upon the sub
President i.egh Valley Railroad Company who
naon of the associated comp impor,
TO interests o., the iehs valley sa,road Company as to
saa assoc alton shonla be continued darng tue year, and
watch the Individual OPERATOR o. the enign alley region
hoard OF Control m GIT in order 20 sustain said board
and our the regulations lrovaed the Lenish Valley
active member Of The association and
gwen by Asa Packer this subsequently
articles Of association signed by ar rsrdco
III. OF the Lehigh Valley region and
Whereas the month Of Apr iast the quota of the
aud ine representatives reron admitted their
and md ps" es IL, Of h o.
the iin OF May last, ne following resolution was unan
Resolved rhat in view Of tho persistent re'a.al Of the
Bonid Control admitted inability OF the repre-
scutaye OF tne individual operators OF the ehigh valley
quota OF the of the ehish
time ~ssocstion that she Board Control
And w,rea. on tho adoption resolution
Messr Pardee and swoycr representatives
monng which time the said gentlemen pledged
the proper qaola Of the Lengn Valley interest
or The month o. Apr was pot az eli ssa's me- ~
operators nelnans we Lsh,g, valley eoa vemp.ny 70
programme Of the Associated Coal companies for the
And whereas the pledge Of the representatives Of
Lehrh considered satisfactory by the Board OF
.. . hos y he - ew a By M rarc
he day "pon which said Pl,aie wa, ,s-s
~. H.. MCGOWAN, President
Have Judge Packer the agreement will be carried
a. PAkDEb
And whereas. whanding said agreement. the Lchigh
VALLEY region exceeded It's quota ia the month OF June
75D tons and whereas at meeting Of the Board OF Con-
ri held July ~, 1876 which question OF excess OF
shipment Wy tho Lehigh Valley rcAon discussed by
Me Pardce and reported that ~ very
Large meeting the Lehgh Valley operators had becn held
ON friday last. At which resolution was adopted
that the Lonigh Valley operators suspend snip
mcnts Tor In the outa OF August TO equal
lac the Tonnage to its and reduce the excess
thereby nd In June; further that At the meeting
resolved that the Lehgh Naey operators wond abide
by the the Board Control reduce their snip
the proper quota remainder Of the year
established b. the Board OF Control.
And whereas, Notwithstanding tDe said last agreement
the Lchigh Valley OF Us quota Tor the