New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-11


Next Thursday is said to be the day when
the long-cxpected new combination is to be
made by the coal companies. A programme of
the proposed combination is issued, and the
public can see exactly what is intended The
object is to reduce the production of coal and
thereby enhance its price. An exception
is to be made in favor Of anthracite
shipped to the Pacific coast, or to any foreign
country except Canada or the West Indies.
That was a kindly thought; it covers such
probable contingencies as the shipment OF
Goals to Newcastle, England, and shows that
the proposed combination Will not be wholly
greedy TO the ordinary mind there will still
appear to be a slight want of patriotism
i'm discriminating thus against our own
people and in favor of foreigners, except
ing as to the jewellers on the Pacific
seaboard. Nor is it quite clear why coal ought
to be made dear to the people on this side OF
the Rocky Mountains, and left cheap to the
folks on the other side Of that chain. But
doubtless the coal companies will bring for
ward, as they did when the former cOmbina-
ton existed, abundant arguments to show that
the scheme is one of philanthropy.
Let lis consider what would be the effect
if such combination could carry out its in
tent. First, the production Of coal would be
diminished. Manifestly, fewer miners must be
emploved or the men must do less work.
The higher wages that can possibly be Iald
them if the coal is sold at a better price,
will not make up the deficiency IN
employmcnt. Less coal will be consumed as
its price advances. Hundreds of manufacture
Il. hap ltr ctr 10
along. because of the low prices for what they
make, must extinguish their furnaces and stop
their machinery if the price of coal rises.
The manufacturers cannot, TO any extent,
combine and raise their prices; except in rare
instances, that attempt would simply invite
competition from foreign factories. There is
n great deal of hope that now, with cheap
coal, cheap iron, and cheap labor, American
goods may be widely introduced into South
American and other foreign markets. Take
out one of these three elements of cheapness,
and the margin of profit on our newborn ex-
port trade will disappear.
Although, while they last such combina-
tons as the one that is proposed may do inn
mense damage, there is always the consola-
ton that they cannot endure very long
1t is not in the nature of what are
popularity known as American institutions, that
monopoles should last. Some of the companies
that are going into a combination can produce
coal cheaper than the others; if not there
would be no need to regulate production or
prices. There is no sound reason, as mat
ter of business, why the stronger ones
should sustain the weaker. If the whole
matter were left to the natural opera
ton of the laws of trade, the companies
that can produce coal cheapest would drive
the others out of the field. That would dimin-
ish production down to the point of demand,
and wrong nobody In that case certain dis
tricts which cannot now compete with
others more favorably situated, would
close their mines permanently, and there
would be some hope of inducing the
superfluous miners to emigrate. But with a
combination keeping all the mines partly at
work there is Just enough to do TO encourage
miners to stay where they are not really needed.
The tendency of a combination will be to pro-
tract beggary and misery among Pennsylvania
miners Ii may also protract the existence OF
the weaker coal companies There Is no eyl-
dence that anybody will be benefited by it,
except perhaps, some stock spectators.
Nevertheless, we may expect to hear the move
ment laudcd 10y its promoters, on high moral
grounds.
There is a peculiar significance in the en-
doayor to form combination OF coal COM
panies for the protection of the weaker ones,
at the present time. The report of the ex-
President of the Philadelphia and Reading
Railroad Company describes q state of affairs