The New York herald., 1878-02-27
COAL COMBINATION.
It's Investigation Continued by the
Legislative Committee.
IMPORTANT TESTIMONY.
The Method of Monopoly Partly
Exposed.


Investigation OF the alleged coal combination held Its
second session yesterday the st. Nicholas Hotel
Mr. Prescott occupied the chair, and all the commit
lee, except hessrs. Avord aud Baker, we're present.
The proceedings opened with the examination OF Mr.
i. B. Thurber, OF the firm OF Messrs IL. H. * J. b.
Thurber l. Co., wholesale grocers- The witness was
of the Cheap Transportation Association OF
this city. For years had made all questions touch
ing transportation matter of inquiry ana study. He
possessed general knowledge relative to the cost OF
transporting coal, and conclusions were based
upon has familiarity with the amount actually Charged
and OF the cost of other commodities
The coal companies, said claim that the expense
per carrying coal ranged from Of
n aud quarter while the actual cost
much less Tho annual statements oi some OF the
railroads dsprove the assertions made about no cost,
the average per each mile on tho Philadsphia
and Reading and Erie railroads was 4-l0o mIls
while saverage charge was 76-l00 mills On the
Pcnnsylvana Central the average wasS S2-10O mills
and the average charge 92-1Oo mills On Lake
Shore aud Michigan Southern mot coal road any
extent) the average cost was 8 Gl-10O mills. and
tho average charge l710o mills. Colonel Frins,
VINO was thoroughly informed upon such matters
had been known to say that freight ROAD with full
traffic could carry freight cost OF three mills per
ton mile. Those companies carrying large guam
lily OF coal could, Ihink carry II for much less than
company not DONG naf the business Freights at this
could be carried for much less than sup
posed possible years ago, but all the roads
have endeavored To keep up the rates
ADVANCE IN PRICES
AS coal consumer the witness well aware that
the ormatieu OF the present Anthracite Coal Associa
lion had caused coal To advance. Prior to the ar.
rangement between the companies paid So so
per ton, his last purchases 81 u per ton.
Those competent judge mad predicted there would
"A so
quantities now in the market were reduced The wit
ness, lnformaon had been obtalned from the
OF whom he purchased; these wore secondary par
ties, aud not the coal companies The prices named
by MIN above Tor lots OF twenty 1--we vi
2,2s0 pounds, but with the smaller consumers, who
only obtain oil 900 pounds. the price varied
with the amount bought In his opinion the average
householder would DO compelled To pay fifty cents
ton than did he had no knowledge wnat
the companies charge TO persons who buy directly OF
t1em
EQUIPMENT AND CAPITAL
The coal tra1c be carried cneaper than traffic
OF any other Kind. coal road costs much less
equip than Il common caTryIng road. The reports OF
the several railroads connected with the combination
under Investigation show them TO be more heavily
capitalized than Is essential, which s one reason why
they exact more than Is necessary Tor carrying COAL
II they desired to pay interest their invest
ment The thea said that the Morris Is
sex, the Delaware. LaokAwanna and Western, and the
Central Railroad oi New Jersey amples OF
truth OF mis- assertions Experts he sand mold that a
railroad could be constructed anu equipped
through an ordinary country Tor $50, O0O per mlle
md through rou9n country for $40 600 per mile
IL was lair Tor a rairoad company 10 capitalize
surplus earnings aud then charge hIgh rates tor
rylng that tue interest may be paid upon them The
total Liabilities OF the Morris aud Essex road, as shown
BY balance sheet, S34, ,000, O0J, when make
mile its road TO S2O0,00O The
liabilities Of the Delaware, Lackawanna and " estern
Railroad, not Including It's leased ioes, show
rosL OF $l.g,0d0 per mile. The Central Railroad
pf New Jersey has liabilities of S5l, 90 00J, with
lO3 miles OF road. T!de Delaware and Hudson Canal
Company's liabIties reaon S33 OOO,OOO, with LOB
road. IT mercantile hrms generally
managed. Mr. ihuroef thought, Ia the same reckless
spirit the panies they would unless
they could bring abO,it combination to initiate prices
couSsi IL NsED NOT APPLY
Here MIR. Bris bane desired TO Tie witness a few
Questions but Chair Prescott said tna AT the COM
LlIttee ciudett allow couusei priv
lege. lie collo- however state his questions and II
the chairman eeme d them of sufficient Importance
they shouia be submitted tile witness liz answer
10 some OF Mr. BrsDane's inquiries Mr.. ThurDer said
that his arm sed between oOO 600 tons OF coal
annually OF various sizes and bought IL oil different
parties
RE cEnER JEwgrT's TESTIMONY
Mr. Hugh }. Jewett the wtness Ho tes
tined that Ihc Erie Railway, OF which he Is the
cover, had cCmtracIs t the Pennsylvania Coal Com
pany, and De lawAre and Hudson Canal Company and
with the Leh gh Valley Company, ny which connec-
ton was of med between The TWO lines named; the
two first tor carrying coal and the latter TOR all
KINDS oil rei ghts The rates with the fennsy Coal
Company arid Delaware and HUDSON Canal Company
are not Exee though the percentages may be he coal
CONTRACTS MADE the charge OF
the Ere ROAD; slnco they made the traffic
had becOmtt greatly aS0rganized aad actng upon
own luu gment ana in order 10 allow sad co panies 20
had been in certain instances reduced; tempo
rary chan ges tho rates OF por
rs In his Judgment suited the emergencies of the
Case There had beoD no permanent changes. When
asked by Chairman Prescott he could give the
Itee Tie special rates which the Erie road charged
Tor carrying co above referred 10 Mr.. Jewett said
he could. but a doing 90 he would take the matter
into slderaton. Ho would be worry sorry with
hold any Information IRON the committee, but he could
not do any lhiug would mar the business rela-
lions Of hls company with any other.
THE ASSOCIATION.
Mr. Jevett had glanced at the articles of agreement
which rtned the so,:aed coal comb nation but nad
lned them TN sufficient to an opin-
Ion rdng them. lie had hoped however, that the
would have the elect oil uniformity in
the pr ocuctiOn sale OF coal He did not think
specu laliye prices would result the natiou
tnfey defeat the end In view. When asked f
he " oulc read the fces of agreement in question
Mr.. Jewelt SAID he had interest IN them.
ssfsut Mr. JewettD SAID Chairman Prescott stthe
con mittee would Ike your opinion AS American
citizen ~ when the witness said tnat he was will ng
give nybody his opinion citizen, but he DISH gcd
tto make commentary upon the private business OF
any gentleman" " Mr.. Jewett did not read the docu-
l. he prepared TO state what would be
spe culavc prices Tor coal He had been in the
bu siuess Of producing IT.
AZ the conclusion o! Mr. Jewett's testimony the
mmttee adjourned, subject TO tho call Of the chair