New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-28
TIE con- COUBIN4TION.

The very core Of the various schemes of COM
bina,ion or pooling was exposed by the testi-
mony of Mr.. ThurbeI, before the Legislative
Committee on Tuesday, and, not less, by the
plan of reorganization submitted by the JOINT
Committee on behalf Of owners and creditors
of the Ncw-Jcrscy Central. MIR. lh,lrber
showed that the roads chiefly Interested pre-
tended to represent capital many times
greater than the actual cost of building the
roads, and of buying coal lands at any except
monopoly prices. The NewJ"rscy Genital
scheme. even if tested by the very favorable
statement of the receiver, which was intended
TO support it, shows that the company VIII
lack over $500 900 of earning interest on It's
debt and paving secured creditors, even after
a large part of the bOndhodcrs have deferred
their interest, after other creditors have agreed
not TO press their claims, and after the stock
holders have paid in over ~, OOo,0 900 IN cash
and surrendered one-tcnth of their stock. unless
the price of coal can be advanced by comhina-
lion. But It il cOOlly assumed that an advance
of 81 80 per ton. on all coal forwarded to
market, can by the combination be secured,
and that the share of this gam coming to the
railroad Will enable it TO meet first charges
after the reductions stated.
Ii 4, as cIrit a. un,IIsht Uhdt tiIc UIJ"C. oi
these combinations is to compel the public 10
pay interest on a nominal capital which does
not actually exist, which, in part was never
really invested, and in part was invested
at the fictitious prices which coal lands
reached when the former combination
made Il complete monopoly, and which,
in every just and proper sense, is rs
truly capital thrown away and sunk by fool
isb management as If it had been dumped ln-
10 the Atlantic Ocean or stolen by Tweed.
The attempt to make the public refund 10
these corporations all the money which they
have lost, thrown away, or ioolislly put into
lands at absurdly inflated prices, is utterly
hostile to every public interest. If a corpora
lion has lost money in that fashion, it ought
to be compelled to bear i Is loss exactly as a
merchant does who buys unsuitable property,
or a bank which lends on wildcat securities.
The first and controlling interest is that OF
the public. The right of the public to be
protected against Illegal combinations for the
PURPOSE Of forcing il to repay all losses by
wanton venture, papabc fraud, or unwise
conduct. is as clear as its right to be pro-
tectcd against theft or forgery.
What the Legislative Committee may do
cannot, of course. be predicted. There arc
laws enacted for the very purpose OF prevent
ing or furnishing such conspiraces against the
nublic welfare. II is the duty of the commit
tee to open the way for a full and prompt
enforcement of those laws, and ii is possible
that, if Ncw-YOrk cannot or Will not do any
thing TO protect its citizens, they may yet be
protected, IN some measure, by jersey justice.
The swift decision in Pennsy lyania against
the Standard Oh Company strikes blow OF
the same sort, and it is high time to compel
the coal barons also to pay some regard to the
public welfare.