Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1886-03-06
0be Canfaster 1ntelligelfer.
LANCASTER. MARCH 6. 1886.
Tho Effect Of Free Coal.

The Effect OF Free Coal.
Representatives of the bituminous coal
interests represent to the committee OF
ways and means that it will be very preju-
dicial to that interest to take off the duty
on coal. Among these gentlemen was
Charles F. Mayer, of Baltimore, president
of the Consolidated Coal company, oper-
ating in the Maryland coal field, whose
outlet to the Eastern market is by the
Baltimore Il Ohio railroad. Mr.. Mayer is
a very sensible and well.informed man,
and his opinion is no doubt honestly
held and is entitled to great weight.
But it seems to us to have little else
to recommend it. 1t is said that coal can
be brought to our ports by water at
lower price than it is now taken there by
rail; and that is, the fact; but this is
strong reason calling for the release
of the duty on coal. The duty oper-
ates as protection to the rail
roads carrying coal to the seaboard. 1t
enables them to charge more for the SER
vice than it is worth. The release of the
duty would not take anything from the
wages of the miner, because they are now
as low as they can be brought. The rail-
roads have, however, combined to
keep up the price of their carriage; and
the competition of foreign coal would inter-
fere with their arbitrary and unwarranted
prices. Mr. Mayer well knows that there
is a pool among railroads carrying BIZ
luminous coal to the seaboard, by
saI a,I Il, =
the traffic with which the others
agree to abstain from interference. The
Pennsylvania, Baltimore Il Ohio, Norfolk
s. Western each have their allotment, and
the Beech Creek will get its share if it is
not diverted to the supply of the Western
trade.
The result is that the charge for carrying
1000 pounds of btuminous coal to the
Philadelphia consumer is two dol
lars per ton, the distance being
less than two hundred and fifty miles,
the coal itself being bought at the
mines for from sixty to seventy cents. OF
this the miner gets thirty-six cents, the
land owner ten to fifteen cents, for royalty,
and the operator the remainder; of which
about ten cents goes to pay his general eX-
penses and what is left represents his
profit. 1t is clear enough that there is no
room anywhere among these items of the
cost of coal at the seaboard, for much re-
reduction, save in the cost of carriage; and
that there is abundant room for it there. A
car load of coal is about twenty-five tons
10 that the railroad gets fifty dollars to take
a car load of coal to Philadelphia, the trip
being made in two days, the car being un-
loaded in another day and returned in a
day or two. Undoubtedly that is protita-
BILE business. 1t would be done at
large profit for half the money Anyone
can see that with glance at the facts.
And it is done for less than half the
money and in this state, at this time, by the
same company. Coal is sold to-day in
Buffalo, New York, for one dollar per ton,
IS we are reliably assured, which is taken
there from the Clearield- Jefferson region
in Pennsylvania, although the distance is
greater than to Philadelphia. This is a
very unusually low price, and cannot be
maintained, But coal has, we understand,
for long time been sold for less
than dollar and half ton at Buffalo
as the coal costs sixty cents at the mines,
. dollar at Buffalo gives but forty cents for
carriage, and dollar and a-half but ninety
cents.
These are the results of railroad com.
petition. Several railroads take the traffic
north and westward from the Clearfeld-
Jefferson field, and generally they are bank
rupt; which shows that their competition
reduces their tolls below a paying price The
Pennsylvania road has had no competition
in taking coal eastward, and is threatened
with none save from the Beech Creek. AS
consequence it recoups itself from the
Eastern consumer for what it loses on the
Western. This is swindle from
which free trade in coal will meas
drably relieve the Atlantic consumer,
who will be able to buy foreign coal at
q price that will compel the railroads to
put their tariff nearer to a fair figure :;
which will be about a half cent per mile.
1t 1t Is fact that this price will yield
. fair profit on coal carriage, Congress
need have no hesitation in taking the duty
Of seventy-fiye cents ton off coal, as
the railroads can afford to drop the whole
Of this seventy-fve cents from their charge
: and still have very profitable business in
supplying the Atlantic seaboard with bitu.
minous coal.