The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-06-13
THE COAL TRADE.
Heavy Sales and Why They
Are Made. .t
WHERE THE PROFITS GO
The Necessity Of Combinations to Pro.
tect Mining Interests.


what other companies might do subjects Of worry
earnest discussion yesterday, and which also visbiy
affected the stock market. There was rumor on tho
street that tho Delaware, Lackawanns and Western
Railroad Company would sell to-day 250, 900 tons Of
coal but this report denied by President Sloan.
There was also that tho Delaware and Hudson
Canal Company would pursue ike course
On the street. with tho mddcmon aud dealers and
consumers generally it seemed to be almost uuani-
nous opinion that the coal far from being
unravccd and the differences settled upon pcr-
mnnent bass OF operations rs at any time since the
breaking up OF the old combination Whether It 10
absolutely truc or not as 1t has been asserted that
tho largo companies in tho market retailers,
ready supply tho "nrsi 6rs servo principle,
OF tho representatives OF these companies havo
openly uvowed that the retail dealers undorsel-
ing them, and tnat tnoy driven to the 'pcddlng'
business q matter OF nelf-proecon. On the other
hand It open secret that from the day OF the
sevcring OF tho combination ties the companies have
been placing coal at figures that fall considerably short
OF expenses OF mining getting tho coal tho
seaboard
soxE LARGE SALES ARE MADE.
In this connection IL is said that pressure for
money meet pcrfcctng liabilities on the part OF a
lcast some OF tho companics has the real
of tho large sales IN open market aud not any solid
desire regulate either tho supply or meet the actual
demand IL n held by many persons so identified with
coal trade either producers or Dealers that
perfect system OF regulation viii be attained until
ogreed upon by the companies TO nx The price Of tho
coal ut tho bunkers-that rs, TO sell II a. tho
mines alter II had been mined This method, IL Is
argued by those who recommend II, you'd enable she
companies 10 soil AZ figures that would pay &C
least running expenses, and would be guard against
any OF the pcrnicous effects OF ovcrstockng tho mar
ket by being compelled TO como into u AT unscasou-
able times with heavy lots for the sake OF Keeping
their heads above water
These critics OF the course that has been pursued,
aud is sti being followed bv some OF the companies,
refer 10 tho tact that, when the combination went
| vxtopt hnro mn ain 4lO hon mi M
result Of compact broken that Ind Affected evory
consumer from tho large Manufacturers down TO the
people who bought II BY the buckctuL and also
point to tho fact that white the companies
have ooen selling at , auction large o lots
every bin in their coal yards virtually ar
range the prices to suit themselves. That there is
strcng hencd by Inquiry among the Dealers who vary
In priccs-and, 4. is asserted, In GONE instance:
companies them elves. aud the lac before mentioned.
OF tho companies being ready TO uinish coal In any
quantity at retail The prediction made BY somo OF
! the coal magnates at the time tho combination
was ruptured that tho individual operators would
thore was nothing then left gulae tho supply was
pointed by other yesterday when DISCUSS
ing the situation, as not an over promising recon-
Incndation OF their judgment for the future
VINO KkAP THE BENEFITS
As an Instance OF short sghtoducss the very circum
stance OF the OF tho mddlcmen In thing their
yards the companies discontinue, and the enacity
TO- conclusion dcduoed BY this GLASS OF criscs
Is that the companies just as dccp in tho mre as
sU.o rue bsnx nsass S,nsa ~ ample supply are
holding the trump cards 10 the game
| al tho Office Of the Delaware and HudEon Company,
thcre WINS everything except harmony OF views IL
has bcon SAID that the reason why Tho resolution 10
limit inc supply with general approval
was the absence OF President Gowen OF the Reading
Company, and that whom be returned he would con-
sidor the matter There wero found persons ycster.
day who consider that President Governs visit 10 Eu-
ropc was carefully considered in tho interests OF his
company, beyond the matter oil nndng his bonds,
and ha. he will DC the last man IN the world 10 agree
TO anything that will tend to curtu the supply II
rte yesterday that matters might come such
pass that not only would the companies widen tho
breach now existing but totally refuse TO listen 10
overturcs irom the other, and pttcn IN and mine
oil they possibly could rush Il into the market as best
tho might and let the one with the shortest purse
string 70 under first In such event, II Is held the
consumers would have snow OF being benefited,
varying OF mddlomcn would be punished and tns
miners very largely aided.
A representative OF the Pennsylvania company, re-
ferng tho reported scordance Of the last meeting,
dwclt at considerable length upon what tho action OF
President Gowen might DO upon his return from
Europe and reviewed extent Tho Of tho
difficulties that bsset the market and tho companies.
A coal PRESIDENTS VIEWS
President Hoyt, OF tho Pcnnsyvania Coal Company,
that the coal market greatly overstockcd al the
held May 81 at tho office Of the Delaware and Hudson
Company, resolution was passed by the companies
10 suspend mining operations Tor one month, but Mr.
Gowen, President oil tho Reading Railroad Conpsny,
was not present, having gone 10 Europe. He was
represented by Mr. D. B. Kern Mr. Gowcn expected
to return by the LIST Of July The COMPANIES await his
arrival for ratification OF the action OF his rcprescn-
iative in the vote on limiting the production Of the
mnes The production last year wis II, 900 900 tons
Gong back TO 1872 wo ind that tho production for
20 TO 600 tons 1874 was l9.SO5,OOC
TONS and IN 1875 IL was 20 Gas 900 tons Tho natural
growth OF production will doubtless givc. At a low
estimate increase in production Tor this year o
900 tons over that Of last year. Mr. Hoyt wa
questioned as iollows:-
REroarER--If there Is this Increased demand why IL
II necessary 10 enter into agreements between tho
coal companies to limit tho supply
Mr. Hoyr-Ii the full machinery OF tho companies
was operated to It's full capacity there would be pro-
duccd four or five million tons over tho de.
mand
RkroETER-what arc tho prospects OF tho yeld this
Year,
ton acnntcy, suggesting perhaps that tho action of
President Gowon might have an influence on this suo
ject had already been animated by Other parties
should he not como into the agreement Tor suspcndng
operations for month the other companies might
not do SO either.
rmE ROOT oy THE DrrYIcuLrY.
Mr. Hoyt SAID that tho YoaI dificuty ~ ths.-Au
the agreed to limit the quantity OF
duction 10 tho demand OF the market II this wero
done companies could regulate prices according
reasonable standard But tue great overwhelming Of
tho market, as Is now done by the COMPANIES, makes
II possible for the consumers OF coal 10 nx their
prices Thus the companies cannot regulate the
standard, and have to submit Mr. Hoyt whom qucs-
toned said that the auction sales in tho
main conducted Ia good iaitb. In this connection he
referred 10 the great sale OF hall million tons last fall
as bond Nde.
Mr. Hoyt continued :-"lt has been charged that the
company the proposed saic Of 200 900
tons Of coal, is acting In a vindictive way that
u wishes TO hurt somebody. This not
business II Is simply TO meet the extraordinary
conditions OF the coal trade to keep thor miners
ploy Cd and 10 retain tho conpanys regular trade"
As showing to what a degree OF uncertainty the
market has been pushed II may DO mentioned IN this
connection that there u runor 10 the effect thni
sale OF 100000 tons Of coal would be made by the
Pcnnsylvania Company to-day. Mr. Hoyt said, how.
ever, IN emphatic manner, that tho snlo had beer
advertised and would take place.