The New York herald., 1878-03-10
THE COAL COMBINATION.
Close Of The Investigation by the
Legislative Committee.
EXAMINATION OF WITNESSES.
The Various Sources of Coal Car
rying Companies Revenue.

Tho sub-leglslative committee to investigate the
effects Of the combination entered by the various
coal companies under the titlo of tho "Anthracite
Board OF Control" met In parlor 3S Of the ST. Nicholas
Hotel yesterday. Mr. Cyrus d. Prescott was IN ,he
char, and Mcssrs. Wheeler, Chappell, Moller and
Browning present and took part in the examina-
ton OF the Witnesses during the day.
MIR. John Livingston, a lawyer, Of No. 154 West
Fourteenth street, the first witness examined
He testified that he knew of Jay Gouids purchase OF
coal lands in Pennsylvania prior to 1872. on
behalf of the company without any authorit y
OF law permitting such purchase Tho witness
stated that after General Dix's resignation and
the accession OF Petor Ii. Watson, in 1872. tho
latter bought immense coal interests Pennsy van
consisting OF coal lands owned and leased by the To-
wanda Coal Company, In Barclay and Bradford coun-
ties OF lands and coal Of the Mining and
Exchange Company In Elk, CIearfeld and Jefferson
counties, and OF coal LANDS Wyoming and Lack
awanna valleys. In answer to question he SAID
these estates wero bought In the name OF Mr. Watson
because tho railway had then no legal right TO hold
them. Thcy since, he beloved, were able to obtain
title and hold the same. member OF the British
Board of rrade-Captain Tylcr-consiered The pur-
;hases by the company extremely upwise in their
crippled financial condition. In July, 1874 Mr. Wat
son retired from the management of the CON-
pauy. The witness declared that when Asa
Packer and thomas Dickson were elected to
seats In the Erie Board, In 1875, they did not own
single share oil It's stock; aiterward they held
share each. In the same year Samuel Sloan also
elected director, but in 1872 John Taylor Johnson
was chosen director. The choice of these men, all
connected with coal carrying companies, was witness
thought, with the intention OF securing harmony OF
cooperation. Tho witness SAID that Mr. Fl. j. Jewett
In 1874 was placed in control OF Erie by Colonel
Thomas A. Scott, President OF the Pen nsyvania Rail
road, all In furthorance OF tho same general plan Of
monopoly
SCRANTON MINERS STATEMENTS.
Tho next witnesses appearing before tho committee
after were John f. Evans and James b. Hickey
miners, from Scranton, Pa.
Mr.. Evans testified that he was an inside mining
foreman the Of sinking shaft and constructing
breakers about $l5O.O0O; tho Arst coal reached
was at depth Of from 200 to 800 feet below the
face; the miners were paid by tho load for the
coal taken from tho mnes before January, 1876 the
price paid for Mammoth Vein coal was 81 Is, TOR Top
coal eighty -four for Diamond vein ninety
four cents after date prices were reduced
to an average OF eightysix cents; tho witness had
acted as foreman IN mines owned by private per-
sons, who sold thcir coal In ono case to the Della
ware and Hudson Canal Company, and in another to
the Delaware, Lackawanna and Western; the miners
companies did not furnish cars the laDorer In coal
mine received one-thrd the price OF Cur load, and
Inc miner received two-thirds paying all expenses;
ON the average q minor made about 81 IS day when
he worked all the time; on tho average miner now
dd not work moro than eight days month; at the
present time laborcr about as well Oh as
mincr the coal combination had advanced
wages a. the mines; the Delaware and HUI
son and Delaware, Iackawanna and Western
companies paid cash Tor work; smaller opera.
tors obliged their workmen 10 tradc at co-opera.
tive stores where prices wcre high and articles In
frr0r; tho larger companies now bought about one
bali OF their coal from private operators their own
production having been diminished while that oi the
1.ffn had loA -. ..lA I'm
cars, ready Tor shipment ior eighty cents per ton.
james b. Hickey, OF Scranton, Pa, laborcr and
miner ut that place since 1862 testified that the state
nlents of the preceding witness In regard wages,
&c, were correct; frequently, when work
cars at the mines It costs from eighty TO ninety
cents per ton 10 deliver coal Ia cars under the shue.
During the early part OF the afternoon 1t was cvi-
dent that the legislative committee were anxious
serve suDpenas ON all persons who were likely to
throw any light on the subject OF heir Investigations
aud therefore the sergeant At Arms was kept busy
hpnting up the persons to DO examined throughout
tho city. Mr. Connolly, painter, ot No 3l5 West
ThiriyAfth street, testified that visited Scranton
last "Wednesday and Thursday and had talk with
superintendent of mines; he asked at what price he
tSIr Conneiyl could purchase nity tons OF hs coal
week; the reply was that It was all sold 10 the
pany; when asked II they couid not mine more coal
than they were at present dong, the reply was
more than agreed upon they would lose their
the conclusion was come to by tho witness that
Gents ton; II individual operators sunk their
shafs II would cost about 81 Us per ton.
At this juncture Mr. +. b. Thurber entered tho
room ana gave the committee names, and made sug-
gestions as to whom they should subpoena. Following
Mr. Tnuroer was Dir. Peter Mcdonald, coal dealer,
VINO was introduced by the former gentleman TO the
commitee and testified as olows:-
bought coal before the organization OF tho Anthra.
si,o Board Of Control as knew the price was to be
Advanced; tho advance has been almost ninety-nve
cents per ton In stono coal
Q. How much have you advanced coal to your cuss
tonlersy A. On an average about fifty cents per ton.
Q. Do you buy from direct producers? A. In
nearly all cases. either from tho companies or ind
q DO you have anything to do with tho freightage
from the minesY "A. Not directly.
What Is your knowledge OF the cost OF transporta-
ton oil coal? A. From miners and others learn the
cost TO be about 81 so per ton from the
boken, Wehawken or south Amboy; but II costs US
fifteen cents per ton to get from there to New York.
q. Have you any idoa what the coal costs the CON-
pancs from the points at which you tuko itf A. In
iermedlate operators toll that OF mining
is from 81 to 81 20 per ION. and twenty or thirty
rents In addition when they have to pay royolty add
to this the company's freight 10 tidewater and you
have the OF ABOUT 50 per ton delivered a. Hobo
kcn
WHAT COAL COSTS RETAIL DEALERa
The witness testified 10 answer TO further ques-
lions by the chairman that II ho had yard on tho
water front he thought would about So SO per
ton to place his coal there.
nr. John q. Barron, a stockhoIder principally in
the Delaware Iackawanna and Western road, said he
I'd not particularly Investigated the sources OF that
compnny's revenue; previous to 1877 he understood
tho main profits were derived from sao nnd trans
poriation OF COAL but presumed they had large reve
nue. from other sources; dd not know that the coal
companies mad been largely inflated by watcred capi-
tall was not aware that there were fictitious values
engineered the stock market greatly 10 excess OF
the value Of tho actual Investments; have been
large holder or coal stocks, but not now; sold
large lot Of Delaware Lackawanna and Western stock
NJ l9la; sold portion Of my New Jcrsoy Central
a. ITO, or thereabouts; would not iiko 10 say
whether had private information as To sale Of my
stocks; l think II was merely intuition; looked ag
tho state OF trade, the cessation OF anuacuring,
&C., and concluded coal stocks wcro not good things
70 nold ON 10.
OTHER COAL DEALERS.
Mr.. Joseph ). Mcdonald, coal dealer OF this city.
corroborated the way shipments we're mado by tho
companies, and II was only during tho questions
to where soit or Cumberland coa came iuto com
petition with hard coal tnat his evidence beca vau.
able and interesting He stated tnat coat at a. SO
or 81 20 per ton would bo preferred Tor steam pur.
poses to anthracite.
AGENT EXAMINED.
Mr.. ). W. Ely, ono oil the sales agents Of Mossrs.
Cox. Brothers Co., coal miners and snippers testi-
hed that the firm engaged IN tho production OF
coal IN Luzerne county, Pennsylvania; II shipped
to MARKET about $50 miles, TO Johnson the trans
portation being obtained tho Central Railroad OF
New Jersey; knew nothing OF the cost OF mining or