New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-13

hs progress Sucs The Autumn OF 1873 the whole bnsi
mesa OF the country has been settling down TO lower
more solid end more honest basis.
Powerful combinations among special classes OF labor
or IN special branches OF trde postponed Tor te te
eyable decline in profits but no one indus
Try hold out against general reaction such as tnat
ws are nasS Ssn Of IP S coal 70 regulate an
improbable trade and To gain that strength by UNION
With The Miners Unions the great Anthracite Coal Com
Mnstion was formed. The policy OF this remarkable
trade union 10 increase the price OF coal 10 sYch
point as would leave fair profit to the mining ana
transporting companies ineideniay the wages OF tne
workGen, which abnormally high, were reduced
ewhat though only after severe struggle IN wnch
the united strength o; the companies barely gave sue
cess Even after this reduction, miners wages were
much higher than those OF any other class OF labor
Tae of the combination IN reducing wages anu
ADVANCING the price of coal was so exceedingly satslac
tory for the time, that II was encouraged to continue
policy exactly smilar to that OF the miners and IN nGtn
eases the final results were alike. ihe cpu pm ~
put up the price OF coal In order 20 he SDo ~
ray these exorbtan rates 10 the miners az Is so much
easier 10 get the disappointed puc 10 pay 90 cSns per
ton for THEN coal than 10 get the orSauh'u
provide for large dividend and interest accounts
The result in this case was price tnat re-
bitumlnous coal, and the mines, which were
opened with capacity Of nearly , twice , tine the
half time thus necessarily Increasing me c0st OF
getting the coal, and making It st,li more dcu't r 20
consumption OF anthracite steadily decreased under ths
policy and the tempa.lon OF 9sn prices
finally proved stronger than the bond OF mutna interest
which held them together This effort control the pro
duci2n ard cost of athracte abandoned in August
last since Which time the other extreme has been
adopted and considerable coal has been sold q! public
ke aud at decline OI from - To ~ 90 per ION from 'e
programme price of So 10 per ton to an aver aver
age auction price OF 81 81 per ton was shock tna rl.a
tue strongest constitutions and Tor tie qtc Sunsu
some OF the companies; but when subsequent sales maj
Gated decline rather tnan an advance from these prices
was seen the OF economy IN the pr0duc-
ton and handling OF coal that 1ad formerly peen CON
edered tho utmost possible unit, must now nn9
sticcr Interpretation or sudden ana sure destruction
awaited tho Companies. H. as q ,nleu " . .Le
heads OF great companies, the combination prices
were only sufficient TO provide for the interest
aud moderate dividend account OF the companies,
lead to. longest purse and the best credit can,
not long supply snoh drain; ihar we ,t g ;
dation, estimate from the best authorizes oD,s-
able that the capital ock Bonds ana oaaeI iop or s
or whose propefis they have leased he rental beng
considered as the equivalent OF interest On eoqqnl
amOunt 20 nearly, II not quite S3ooNvooVO, wneI d.
cent would require an aruna net Rr% M Of s sS 6S
excessive TO estimate pso1t Of S30ooo0oo from
the mining and TRANSPORTATION Of "n1tr"G ,he
srSdneiian % 70 ysan ,n Gs ices
in .ed directly or indirectly h; the mining and trans
pOrttion companies in this industry In the oden tmes
ing) 25 formed fair profit on coal MINI s.
Inc net proht on Goa distance OF aoo ton, oo
rniie-or the entire distance Where, then Is
balance 10 from or what "l be tue enee upon
The coal trade generally and the securities OF our
great coal companies IN particular II IL DE nov "o,nou
It's very simple matter TO point out that there is too
much capital invested IN the anthracite trade OF TO ~
pced coal lands 100 before they are wanted
or can nc used and the leasing OF Large areas OF uhde
well tie ambitious design Of seekngt To c0ntrO various
outside Industries throush onerous Leases or h
fascinating and poplar whle business IS IllSH u
prices increasing, is very Dead sea apple II,
ing 10 dust bitterness, and disappointment when the
inevitable reaction sets in and values decline
The difficulty s not that coal companies have pui
chased worthless property but that they nave purchased
and leased at these nigh prices mnch more tnan 'eS IN
possibly require for many years 10 CONF, anu @
Interest account will OyeTwhcm them lhey are miseIs
who boarded gold and now III TINS srutp'e loi OK
they siuklng under the LOAD OF hen a'euu
lated treasures. ,.,o h.
earning IL by borrowing, Invariably ps9duGes eA..aa :"
gait habits in companies ia individual LveI "hJI'
f6e management T. strictly LJncst (,ud unfortunately
there nave been instance 20 the contrary even III w"
coil lracl the period Of large expenditures IS heVo
marked by rigid economy In tue cas- Under review TA
travacani prices were paid for hands, machinery 10Y
all classes of supplies, md for labor A..
me coal trade would naturally nave been on" OF Tue
FIRST industries feel the efcc Of the suspension o.
general manufacturing lin 1879, and the curtanent OF
omc9iv Shaved this m anthracite trade, however,
wa then controlled efectnay ny the late coal comb
creased throu,i 1874 ana 1879 aud but slightly re-
daced The steady decline Of under
causes than the high prc6' bat the steady increase IN
the consumption Of muuincus coal "hlle tLat o! an
due to the policy governing the latter lnuuStry.
FOR sevoidl years previous 10 1872 tIe market hti
been overlooked with coal and prices had declined TO
such hsuTe that the great MAJORITY OF lnuNH.uli Vl,
orators were ruined but the transportation Welded
fair profit the railroad companies encouraged this large
output. As the mine owners failed the OUTPUT Oi ther
c0erics ceased and the transportation companies sur
fered 70 provide against this contingency money was
loaned needy operators 10 enable them To continue pro
ncug and of course il always hoped and expected
thai business would revive and become profitable.
There was liat to the amounts individual coal opera
TOYS could borrow in those days JUS az te1 IS III tHe
ease of their successors to-day ana when tha nt was
attained the creditor transportation COMPANY haI 20 9ry
IN the cOllery 10 save ~ ITSELF The uipets c9Hl9hcu ID
a rich and powerful union; ressteq an ieuc TS
wages by long continued and expensive strikes. I9ey
had The divided operators at then mercy and demanded
such exOrbitan wages as largely contributed 10 te rum
vi their employers and to the later ORGANIZATION OF the
coal combination
After referring the high prices for coal established
md maintained by tire combination until August, 1876,
Tie JotrRai continues:
During aud AFTER the panic Of 1873 and 1874 II tune
cCmbaaon) stood the coal trade and that rum
Gus cOnd on of Affairs which has now oYertakcn IL.
Ihis was undoubtedly great, nesinnabe benefit to
those engaged the trade at that ume but sihcc u
merely pOstpuned for the inevabe DAY O fech-
onng and in far retarded the settlement OF Vaius 10
that lower plane which they have necessarily to reach
onward course can commence, IL u
at least doubtful whether this temporary PosIOnemrnt
advantage to the country ut lalg or even 70 ts
say nut il is nevertheless sentiment Wluey dOrstd
by shrewd and farstelng business men that IL wGu
have been a positive advantage to the country and ~
every industry had the weak ana embarrassed
members failed IN general collapse tlrce year. ago,
rather than nave dcd from 10 year. increasing
their Indebtedness, disturbing trade, ana Tetdiuns inc
revival Of sound aud healthy business on the new p!ahc
of values The coal combination more than any other
interest opposed and retarded without beng able 10
overcome the order OF things. It MAN
raiied an extIavagant basis OF the cost of
ducng business OF this great Industry which IL the
inevitabe concOmitant of ability command high
prices II postponed the evil day till now when We
might confidently look for The imitation OF general
business revival. confronted with condison OF
things which nps sharp frost TIE slowly open
ing bud Of returning confidence and sets back the Spring
time which must precede the harvest OF active trade
After referring n coal combination in Great Britain
of as early date April p, 1865, The Journal lemarks
tiony and