New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-30
THE COAL TRADE.
WHY IT is DEPRESSED.

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trpo,, STAFF CORRESPONDENT OF THE TRIBUNE.l
SCRANTON. Nov. 29.-The owners OF coal mines
and of the railroads that transport the coal u
market have suffered and are suffering as heehiS "'
The miners from the fall theprce OF coal Wilkes
barre had on "Wednesday, IN the trial OF the mayor
of Scranton's Guard for killing three OF Io'""s
mob the strongest reminder of the effect OF laDores
sufferngs That some day many coai 'ail'"i's'
must have read with anguish the report OF the saie
of coal by the Delaware, Lackawanna and western
Railroad Company in New-YOrk on Tuesday, show
,pc that anthracite coal had been bought AZ the
lowest rate ever known in that city, NhaV
is the cause of this fall in the price of coalf
asked this question of retired coal operator
to-day. and he made reply which think worthy
of quoting entire, although of great length lie
said: The of the low price OF coal is that we
have too many railroads The TRIBUNE mas oeeh
night all the time only il has approached the subject
from the point of view that stockholders IN the
great coal railroad corporations might be supposed
TO occupy as they have seen the value of Their prop
erty impaired or destroyed by unwise leases OF IN
necessary lines and the purchase or control OF coal
propertv which they did not need and could not I'M
prove while We who are interested in the coal IL
self have felt as though the immense debts OF THESE
great companies imposed tax upon every Ton Oh
coal we raise which not only eats up all our prohts'
but forces rs TO reduce wages much lower than
would otherwise be necessary.
"Have YOU any idea" he continued, how much
capta there is invested in anthracite coal property
and IN coal railroads and canasf have not the
exact statistics, but it is sometimes estimated at
5000 DOC. 600! This estimate may be excessive,
but suspect it is not much so as You might sup
pose Now, sir until considerable portion of this
capital is wiped out through the process of bank
ruptcv land some largo slices of it are now very
rapidly disappearing as you know, the country
can never be sure of having cheap coal; operations
will always be conducted at the risk OF loss, ana
wages will be low don't mean to say that the coal
has ever paid the interest on tins enormous invest
ment or that il ever will Recent prices have barely
paid the cost of mining andtTansporation, leaving
nothing for profits or interest and during consld-
cradle part of the past year coal has been sold LOT
less than what was actually paid for taking 1t out
and sending il to market But as long as tins heavy
load is on the back of the coal producing interest
there will always he a struggle to earn rs much OF
the interest on stocks and bonds as possible ana
that will have tendency to raise the price Of coal
on the one hand and to reduce the rates of wages on
the other
"How many Of the railroads do you think might
have been dispensed with p asked.
Certainly oue-half of them was the reply; or,
at least if the unnecessary ones were built there
was no need of loading them upon the back OF the
coal. or what is the same thing, making the great
coal roads carry them. Iou came up from Easton
TO Scranton through the Valley of the Lemgh ana
over the mountains, and You saw there, within
stones throw of each other for most of the dis
tance. two separate railroads neither Of which in
that whole hundred miles. reaches any point, ex-
cent by ITS branches. that is not reached by the
other. The stations Of the Lehgh Valley Rail-
road and those of the New-Jcrscy Central are, i'll
most instances. only few rods apart, and one Of
them with perhaps e single additional track ana
an increase in its rolling stock, but without
the duplicate stations shipping facilities, bridges,
gradugand salaril of officials might do all the work
cheaper and az q profit which is now done by both at
loss if you count the interest on investments.
Then from Easton to tido-water the Ncw-Jerscy
Central and the Lehigh Valley Roads each have a
separate line, and the Delaware, Lackawanna and
Western, which might send its coal forward over
one of these lines, is paying seven per cent interest
on about S4OOOOOOO Of Stock bonds and assumed
liabilities Of the Morris and Essex line. The
Delaware Lackawauna and Western moved
on all its lines, last year, about 100000
tons of coal The amount il had 10 pay a.
rental for the Morris and Essex Road was about
So 100000, or 81 10 ON every ton Of coal 1t moved
OH that which went North as well rs that which
went 70 Ncw-York. But in addition to This there
was the interest on its own stock bonds, and other
liabilities, which, at their market value last Janu-
ar1, amounted 20 moro than $33,OOO,O00 aud the
cost Of operating the road. DON'T you see that the
company must get four dollars a for ITS coal at
tide-water in addition to other business, IN order
10 pay expenses interest on bonds, rentals per
cent interest ON the market vauo Of the stock, and
the cost OF mining the coal But if coal sold for
four dollars, wages here would advance that
even at that price, the Delaware Lackawanna and
Western Company would have 10 reduce its diyi-
deuds below that rate"
"Now, suppose you had the power 10 reorCauize
the entire railroad system of the Lower Anthracite
Coal Regions, cutting OFF the unnecessary roads,
how would You do IT." | asked.
"Wcll, in the first place. there oughtto be only
railroad through the Lehigh Valley, from Easton
to Wilkesbarre and that, with the canal of the Lee
high Coal and Navigation Company, could easily be
made 10 take out all the coal produced in the Lee
high Basins at Summit Hill and in that portion of
the Wyoming Valley that should 90 down through
the Lehigh Valley. Let see how much capital
there is invested in the railroads and canal leading
out Of these regions in that way" he continued.
taking up some tables which lay upon his desk.
" The stock and bonds of the Lebigh Coal and Nayi-
cation Company, which owns, you know, the Lc-
high Canal and the Lehigh and Susquehanna Rail-
road and branches and leases Of the Delaware Di-
vision and Morris Canals amounts to $2i, G25, 342
after dcductng the sums assumed by the Lehgh aud
Wilkesbarre Coal Company which is not
directly engaged in transportation. OF course
this includes the value Of the coal lands owned
by the Lehigh Coal and Navigation Company, but
does not include the stock and bonds Of the Della
ware Division Canal, which amount 10 S2,433,35O
Isuppose that at least S22.OOO0OO of this capital
represents railroad and canal property. The stock
u