The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-14
THE con QUESTION.
How MANY Idle Furnaces aud Factories may
b. Enabled 10 Resume.

To THE ED1ToR OF THE SUN-Sir: The
great coal roads are now in n most peculiar po-
sitiOn. In the reckless imitation growing out Of
our financial policy, the managers Of these cor
porations several years ago conceived the idea
OF watering their capital stocks heavily, and
then by combination putting up the price Of
coal to a point where the roads would be able to
pay large dividends upon small amount Uf
business.
Before the panic, when the Government was
spending the substance OF the Treasury Literally
In Substituting Western railroads, and wuen all
branches Of trade we In full blast, the newly
formed coal monopoly found an excellent mar
ket for its products at high prices. The stock
holders received large DIVIDENDS, and the rail-
roads belonging to the continuation did little
work In CONDENSATION Tor their vast profits
Tie price Of the coal stocks advanced rapidly,
ana the miiitOnaires controlling them trebled
and quadruplcd their vast fortunes.
Then the panic came the vast demands Of tho
West for material to construct new railroads
ceased. The entire business OF the country was
contrg cted. The United states Treasury itscl
was IN u precariOus condition. There was u
struggle after the In eDsity of the panic to keep
our manufactures from collapse. II was futile
The passage of time only demonstrated more
unmistakab,y thlt the entire fabr c must give
wy. One furnace after another stopped. The
r Hing nils closed. All industries became
Frustrated The price OF labor and Of real estate
fell. 1 he great trunk lines Of railroad began to
cut their rates for passengers and freight. Poor
ilrOads went into the hands OF the receiver
and good ones reduced expenses to make up for
the decline In tonnage aud the break In rates.
During this shrinkige IN all other species OF
pro- erty the coal roads belonging To the combt-
nation kept ON paying ten per cent. dividends
and refused to abate prices OF fuel. Most Of
them. hoping for better iimei, managed to in
cumber Themselves with heavy MORTGAGES aud
10y the sale ~ bonds tide over the peiOd Of St Y.
nation. with diminished market for their
productions they dictated higher prices, so as TO
throw the responsibility for dividends upon the
lessened number OF consumers.
For nearly three years this night against the in
tetests of the people has gone on until now tho
gigantic corporations ore brought face to face
with the fate against which they have striven-
either low rates for coal Dor no market at all tor
tue products of the Pennsylvania mines. The
market has steadily grown smaller for coal.
From 1873 until August 1875, there has been a
the East have become paralyzed and capital
Will not again enter the field until IL Is able to
compete with other cities and countries by are
duction in the prices u fuel and like necessities
The coal roads have at last come to the end OF
the tether. Everybody else railroad CORDOBA
of urolt, and the coal roads are left high aud
dry. Unless they are wiling TO conform TO the
spirit OF the times there Is no market Tor their
wares. The corporations thus brought to the
extremity are the Delaware, Lackawanna and
Western. the Delaware aud Hudson. the Penn
syIyania Coal Company. the Reading, the Lehigh
and Wilksbarre, and the Lehigh Valley. The
latter company, controlled 10y Asa Packer, being
more recently completed and In better condi-
ton to do business at low prices. has at several
times lately displayed its willingness to con-
form 10 CUCumsthnces anu TO lONer rates 10 u
point where trade will be encouraged. The
others appreciate the situation, and Of
late have shown signs of weake ning.
II will be policy on Their part to acquiesce in
the inevitable, and by inaugurating low rates for
fuel open up market when will pay better
than the present one by Its greater breadth aud
likelihood OF extension. Thousands OF fur
naces. rolling mills, ana factories will ut once
resume operations, aud the railroads as well ~
the people reap tue resulting benefit.
The great trunk lines to Chicago have proved
that 1t Is possible to carry freight at very low
IA iyt
deuds to their stockholders. The coal roads
eau do this " they will, and the sooner they ap-
prcciate the fact that the times have CHI anged,
and that trey must earn their money, the better
viii II he for them and the people. STIRABOUT.