St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-10-03
COAL POOLS SCORED.
Gov. Pattison, of Pennsylvania, Writes a
Sharp Letter to the Attorney
General.
Regarding the Anthracite Sharks Whose
Prices Rise With the Falling
Thermometer.
He Cites Some Interesting Legal
Points and Calls for Prompt
Action
Whereby The Rights of the People
and State May Receive Pro-
lection.


HARRISBURG. Pa, Oct. 2.-Gov. Patti
son has addressed letter to Attorney Cen
eral Cassidy On the action of the anthracite
pool, and requesting him to move against
it in court. In the course of his letter the
governor SAYS:
My attention has been directed 10 the fact
within the past fortnight that certain corpo-
ratiOns, chartered by the commonwealth of
Pennsylvania. acting in concert, have Or
dered two advances in prices of anthracite
coal. 1t has been ascertained upon inquiry
that these corporations comprise what is
known as the Anthracite Coal association,
which was created in its present form at
meeting held in New York on Dec. 81, 1884,
when there were present representatives of
the Delaware, Lackawanua & Western Rail-
road company, Lehigh Valley Railroad COM
pany, Philadelphia & Reading Railroad COM
pany, New York, Lake Erie & Western Rail-
road company, Delaware & Hudson Canal
company, Pennsylvania Coal company, Lehigh
Coal Navigation company and the PennSyl
vania Railroad company. At the meeting
AN AGREEMENT WAS ENTERED INTO
which six of these corporations were in effect
pledged in writing to restrict and regulate
the production of coal and to maintain and
advance its yrice. An superintendent of the
total production was then allotted to each
company for the year 1885 and on Jan. 1,
1885, a new allotment went into operation,
based on an annual production Of 33,500,000
tOns.''
After referring to the advance of 80 cents
per ton i'll the price Of coal since July Q,
1886, the governor says:
Recently, through the offices of syndicate
of capitalists. there has been strengthening
of the anthracite coal combination and the
claim is now made by some of it's members
that they can mark up coal prices TO any
figure they please, thereby subjecting the
public to their mercy, injuriously and unwar-
rantably taxing every fireside and imposing
upon coal consumers, the financial burden
which the speculations OF some of these COM
panies have engendered. Although
THE STATE CONSTITUTION DECLARES
that mo corporated company doing the busi-
ness of a common carrier shall, directly or in
directly, prosecute or engage in mining or
manufacturing articles for transportation
over its works., yet all. or nearly all, of the
common carriers represented in the anthra-
cite coal com binatiOn are engaged directly or
indirectly in the mining of coal. The anthra-
cite regions of the state are practically under
the control of this combination. For long
periods 1t has kept the mines running on
three-quarter time, thus putting nearly 10O,-
600 workers on what amounted to three
quarters pay. By hindering competition it has
restricted the development OF our mineral
wealth. 1t has advanced or depressed the
price of coal as best suited its purpose. 1t
has maintained the prices of coal supplied to
the city trade at figures ranging more than
81 per ton over and above the price at which
it sold the same to consumers located further
from the mines, but in territory that did not
come within the terms of the agreement. 1t
has advanced the charges for transportation
in face OF the fact that the net earn
ings of the carrying companies belonging
to the combination amount to 10 per cent.
per annum Of the cost of the roads and their
equipment, and of the further fact that
charges are higher than they were twenty-six
years ago. though the cost of transporting
ton of freight does not amount to more than
one third of its cost at that time. By restrict
ing production and by advancing prices 1t
has crippled the vast iron interests, decreas-
ing the demand for anthracite coal in the re-
duction of iron ores. forcing iron furnaces
out of blast, and placing nearly all the indus
tries of Eastern PENNSYLVANIA at the mercy
of the managers of these companies.
The governor also called attention to the
trunk line pool, which, he says, by its arbi-
trary power holds perpetual mencae over
the material interests of the country.
IN CLOSING, THE GOVERNOR SAYS:
Against such combinations the individual
is helpless. The commonwealth of Pennsyl-
vania, in creating corporations that are mem
bers of the anthracite coal combination and
of the trunk line pool, vested them with the
right of eminent domain and other franchises
of a public nature. They owe certain
duties to their creator, and one Of these is to
avoid an infringement upon the rights or
individuals or the general well being of the
state. Their interference with the natural
current and conditions of trade has been in
violation of what is believed to be sound pub
lie policy and against the best interests of the
state 1t prejudices the public and Expresses
individuals 1t is perversion Of the pur-
pose for which they were created. These
facts which have been reported to me and
measurably authenticated. l deem of suf-
flcient Importance to refer to you for your
consideration and such action as the circum-
stances may warrant.
tits understood that Attorney General
Cassidy will at once proceed against the
coal pool. but in what manner be has not
yet decided. This is considered one of the
most important steps taken by the state
administration and was not decided upon
until after very careful consideration.