The New York herald., 1878-01-15
Dob,. balance Tor year charged to profit


THE COAL CoMBINATIoN.
In referring the JOINT business OF the railroad and
tho Philadelphia Coal and Iron Company, Mr.. Gowen
says the results Of this year favorable consider
ing the low price Of coal. 'What is wanted is fair
price for COAL says tho report, "and il tho price had
been 81 Lon higher tho net results OF the operations
OF tho two companies would have S. 900 bet
'Whenever coal reaches only tho 10 west price It has
previously realized, excluding the present ana
part Of last year. tho company eight per
upon It's capital stock, ana every additional eight
added to the price OF coal would bo cqu, an addi-
tional one per cont upon It's share capital"
Speaking iurthcr In relation TO the combination Mr..
Gowcn says:-"it must be evident. therefore. that
with anything like far price for coal assured for
future the and properties of the com will
become very romuneratve to the barchoiders. In
tho ordinary course OF business. with the large pro-
dnction ana great composition fair prices could not
although there can DO but litc doubt that reet
would eventually be obtained by demand ior
and gradually extending TO foreign markets hitherto
inaccessible to American shipments, and though there
companys mines. together with its great transporta
tion tacilities, will enable 1t to make up the long
run In tonnage what may DO lost IN price, 1t has been
considered prudent by tho managers, in view
especially OF the indebtedness OF the
pany, 10 accelerate the advent Of tair
prices by uniting with all other interests IN
placing The anthracite coal trade under the
agement of board OF CONTROL composed Of repre-
ssntativcs of all the producing districts OF the state
authorized to carry into effect the details oil an
agreement for the rata distribution OF the entire
tonnage and tho pay and collection OF penalties
for overshipment OF quotas by any interest sucn
agreement well protected IN ali Its essential points,
has been practically approved by all those interested
though Tor some weeks the vexed question OF proper
division OF tonnage was not satisfactorily solved.
"rhc position OF those shipping over the lines OF
the company was that they would not be bound by
the percentage obtained In tho last i've years. Tor
tho reason that they embraced the entire period
Ing which they rsco,ved SO much T less tnSn sney
were entitled to, but after offer TO take
tho percentage OF the last ten years and again offer
ing to accept as u compromise 2Ssl per cent, tho
matter verbally adjusted late Saturday
afternoon, the l2h inst, by allotment which gives
to the interests shipping over tho Reading Railroad
2Sss per cent OF entire tonnage. Although this
amount Is less than that received in any period
OF iair and opcn competition, It has been thought
price OF coal to bc realized as tho result of the
agreement would much more than compensate Tor
the loss OF tonnage. II is certain that II the
proposed arrangement is carried out In good faith Of
which hcre Is no reason to doubt the result will be
immedu future and should enable II TO get rid Of
oil its floating debt within two years. and with the in
any serious obstacle can ever permanently interfere
deprive the company OF that measure OF SUCCESS 10
which It's large estates so Justly cntito it."
SMITHS CHARGES
II not until the concluding portion Of tho report
that Mr.. Gowen made any alluslon 10 tho serious ac
cusations OF hts predecessor IN bis 0fce In justice
him It due that his explanations and denals DO
gwen In full This was what no said except para
sold hts stock az high figures and thcn brought
charges through maiicc:-
Ftrst-It is not true that any dividends made
which wore not earned, except upon tue hypothesis
that was necessary to reserve the actual prohts Of
the railroad company which wero due to It's stock
holders tor the purpose OF paying the interest upon
the cost OF the property OF the coal and iron COM
pany, pending the period OF tho Investment OF the
money Tor It's purchase aud the Improvement ana
development OF tho estate, which ntesest was In
every respect entirely proper cnarIe 10 The capital
OF the coal and iron company.
econdlt Is not true that The existence OF the noat-
ing debt was attempted to be concealed from Mr..
November oi 1S7d Mr. smith Was nt all times iuliy
cogniZint OF II, took part time ana tme again at
meetings at which It's existence and extent were dis
cusscd, and on or about the LIST day oil October,
1876. when the president OF the company was
In the city OF Now York engaged in negotiations win
creators for tho extension OF the noaung deot, ana
when the amou such debt had become as were,
the puoc properly OF the newspapers MI. Charles
s. smllh was IN tho oflcc OF company Philadcl-
phia awaiting with anxiety, which, II not iclI was ut
Ieast wcl simulated, the arrival OF teegrnphc uo-
spatch the president announcing the success OF
his mission.
Thi,d--It is not truo that the exact amount OF the
Aoatng dcpt OF tho railroad company was not properly
returned at all times to the authorities OF the STATE,
and tho socaed discr cpaDccs alleged In MT SMITHS
statement mado up by including other items, prn-
which in no sense whatever constituted the nontiDg
debt OF tho railroad company.
EOugfh--The so-calied improper transfer oil noatfng
dent from the books Of railroad company 10 those
OF the coal and iron company was simply upon tho
books OF the latter company the bs payable Issued
by It, Tor It's USE and which II was primarily liable 10
nav The fact that give credit 10 and increase the
market vauc OF such paper II nad peen accepted oy
Tor the benefit OF tho coal and iron company
did not require that the bills Issued should Do
entered as bills payable upon the books OF both
companies, thereby doubling tho amount oil obliau-