The New York herald., 1877-02-11
THE COAL COMBINATION.

TIoN-wHAr THE PRESIDENTS OF THE COAL
COMPANIES sAY--No NEW ASSOCIATION POS
sIBLE AT PREsENT--AsA PACKER THE LION
IN THE wAy-rHE SITUATION IN PHILApE1-
PHIA.
PHILADELPHIA, Feb. Q, ls7L
The statement made ny Mr. Knight President Of the
New Jersey Central Railroad Company, at the stock.
holders meeting on Tuesday that the coal combins.
ton would certanl; be re- formed within a week has
made quite stir among those interested and dered
Il apropos that an inquiry should be made from the
proper sources the likelihood OF Mr.. Knights
prediction coming to pass With this object, there.
FORE the HERALD correspondent has called upon the
officers OF the great coal roads their dependents
and uiso number OF prominent miaing operators
NUTSHELL.
The formation CLEAN od--to sum up the matter in
few words-makes II evident that Mr. knight has been
premature in his assertions, and that present no
now combination is possible. for two reasous-nrst,
ON account Of the emphatic refusal Of Asa Packer,
whose consent as the controller OF the great Lehign
coal carrying company, is necessary; and second,
because Of the general dsrust of each other felt BY
the directors OF the six great
in tho combination No matter how strong tho In
clnation TO take means to better their condition,
these two reasons wi for the present Ut least op-
crate to prevent another association or the great rival
roads.
NO coxBISArIox poRxIxG
The facts to DC substantially these: that no
meeting has been held here anywhere else Tor the
reorganization OF the combinaon that while the ops-
raIors in the Lehigh region have signed agreement
10 limit production the presidents OF all the coal com.
panies have refused accept any agreement on basis
OF cooperation other than tic signed by Mr..
Packer limiting production that while tho railroad
officers all naturally desire to bring about return to
49,.
combination, Mr.. Packer, who controls the Lehigh
Valley Railroad Company, being firmly cntrenched
against It, and Mr.. Gowan, President Of the Reading
road also IN opposition, while OF the other man.
ayers OF this road aro Ia favor. All the informal
serences and negotiations between the railroads and
the operators have. therefore, been without result
since dissolution Of the old combination aud mss.
ters remain in aatu quo.
OPTICAL DKsIALs.
All tho railroad officials and operators visited de.
pl0red the condition Of the coal trade and said gen.
orally, that ruin was threatening almost all the coal
interests, from the miner to the CARRIER but
them saw any immediate prospect Of new combina.
ton, and as have intimated above, many Of them
condemned IL to tho end they all desire, on
account OF tho unfairness which the old ssyndcate"
worked toward some OF tho parties 10 IT,
THE READING RAILROAD.
Tho Philadelphia and Reading Railroad, Il has been
asserted, would DO the nrst u new combina.
ton having ooen the greatest sufferer by the breakup
vi the old one. Mr. Gowan, the President Of the
pany, gave. this an emphatic denial whom waited
upon. Ho said, ''No proposition has been rnade ss
lion, aud i is not ~ ali likely that II
any should be made to us We should accept IT, In vIeW
OF our experience with the lasL As to what this cx.
pcrIence had been Mr. Gowau explained that he had
entorcd the old combination with the intention oi
trade to which all the parties 10 the contract agreed
but soon found that the Reading Railroad Company
was being ''swindIcd right along" as another odlcE
nft tnn randi eknf thar suntnm In
tOu shipping larger quantities than tho rules allowed
ana andcrselIng tbc other parties Tins was doue
Company, OF which Mr. Packer is president, but thm
gentleman mas always asserted In hs defence thai
he had made uny agreement writing abide b.
the rules IN question.
rng LsnIou VALLEY ROAD
At the ONCE OF the Lehigh Valley road Mr. Lloyd
Chamberlain, treasurer Of this company, denied all
knowledge OF the reported combination. From what
was learned at this olce however, It Is evident tnss
Mr. Packer Is willing 70 enter into compact for
limit OF the period Of production Of COAL but "a
the price At which is 10 be sold One the directors
substantially sdmtcd this subsequently,, while deny
ing any intention of forming a combination
Later IN the day tho President OF this road, himso,
,s,s oa I"r ,ns ,,orv thai S..
been held but that tho state ofthc negotiations
does not promise any immediate aarcement between
the companies He, personally, would not sign Any
compact regulating arbitrarily the price OF coal.
THE DELAWARE LAcKAwAxsA AND WESTERN.
Mr. Sloan, President OF the Delaware Lackawauna
aud Western Railroad Company. emphatic a.
Mr.. Packer IN declaring against the proposed combs
binations Tor me- HIS experience, he said nad been
like Mr. Gowau's and his road had suffered by the las,
combination as the Reading had.
TuE CRNTR AL RAILROAD NEW JERSEY.
After having obtained the above ontciai centradic-
tions to tue predictions OF Mr.. knight. the HEKALp
correspondent sought tho President Of the Central
Railroad OF New Jersey the purpose OF learning "
possible upon what ground ho based his belief IN tho
speedy formation OF the combination. Al the Phtla-
dcphia oiice Of The distinguished railroad manager,
however. tho Information gwen that Mr. knight
was IN New York. and no opportunity therefore, pre-.
tlin0f lrou fhta
important subject
Tho operators and officers OF coal companies know
OF the alleged now combination than they
had seen IN Mr. knights speech. Tue President VI
spite o. Mr. 3owan and Mr.. Sloan declaring against
the combi alton he thought they would both JOIN u
Mr. Packer would siga an a:resment to abido by the
and this will rfcvcnta new association.
STARTLING suowIso
The Philadelphia Inquirer this morning prints the
following interesting table showing the depreciation
coal company stock by tho present condition Of AFFAIRS
although must be remembered that is hardly fair
attribute all the losses the disruption OF tue old
coal combination when there has been such decline
In vaucs everywhere from political and Other
causes
The io.s to tho holders Of stocks and bonds Of tho coal
companies BY the depreciation which followed the dsolu
fully prepared s.aismen, :rhs stok capital Of the rhis
sS'ib. s b%a s%s "sssk and c 1.u
the psIawsrs LHcknwSn and Westsrn Ksrcsd Com
!. i.c4l.1 90; the Central Railroad Of New jersey
the Peunsylv ana Coal Company, -. .OUuOO
Prom the highest priccs OF year to the
QUOT stions the decline has been
Reading Salue 500 80 to l3h
Lehigh Valley par value $50 rol. ~ ~ -
Central New pRr value $1OU) from. 100 tn 23
D.. L. aud W. X H. (par value xlC0 from ..... 12O to 6o
Del. aud hudson Canal par value SOD from 70 TO 3s
Pennsy yvanix Coal value 500 tsom. 253 10 20
The depreciation 10 the value Of bonds has not been
orally Ia Instances has been quite
equal decline The Delaware Hudson hrsts
have fallen from ii3 60 10t Delaware Lsckswsnua aud
Western convertible from ll5 OO; Central hrsss
consolidated. 100 7s some of the kssdiug bonds have
scarcely shown any .ecinc but the convertible seven
due 1885, have sen from lO5 In january last 10 DO
terday.
Thc amount Of decline In value Reading shares
$2sOUUuOJ: Lehiah Valley. $40 Uu~ la pe!s
ware ana Hudson. Sl30OOUCu; In Central of Nsw
Jersey. over SI..oJWU: in Delaware Lsckawanna aud
Western over slttOJ 200 aud In Pcunsy snis Coal
~ The citation " STOCK and bond
tai is much over $1O)OlJODO There appears be
ersi bcef the rt e~ust continue u tho managers VI
these companies do not orgsn1e Tor thc protection
their property.
A DESERVING INSTITUTION.