Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-09-29
Pittsburg River Coal Shippers Com
PEELED to Take Steps to Freeze
Kanawha Rivals
OUT OF ALL THE LOWER MARKETS.
Local Operators Unable to Meet With
oHt Loss the Prices of Their
Competitors,
ON ACCOUNT OF COSTLY RIVER TOLLS.
Only One Obstacle in the wsy Of the Proposed Pool
Syndicate.


contemplating the formation of a combina-
tion in the near future to freeze the Ka-
nawha river operators out of the Cincinnati
and Louisville markets. Matters have
reached such crisis that some method will
have to be adopted to insure them some re-
turn for the large capital invested in the
business.
Each successive year home operators feel
the effects of outside competition, and
where twice the number of the present
firms were engaged in the business five
years ago the trade has dwindled down to
such an extreme that only the wealthy op-
orators survive to compete for fractional
profits.
In recent years, new coal territory, more
available to the Southern market than
PIttsburg, has been developed by outside
capital, and what was at first considered by
Pittsburg operators to lie a short-lived en-
terprise has turned out to be a formidable
competitor that has made great inroads on
the profits of Monongahela Valley coal
shippers, until it appears that coal territory
in other sections will completely wipe out
the business here eventually, if concentrated
dCllOu Is uOl IdAtu Ol 1LbSOuIS
to nip this threatening danger in the bud.
The latest competitors that Pittsburg
operators have to contend with, in the Gin
cinnati and Louisville markets, are the
firms that have placed the Kanawha river
product on the lower markets, at prices far
below those asked for Pittsburg coal.
SILL IN DEMAND.
- Al Al
Kanawha region coal is a very inferior arti-
Gle, vet it fairly meets the requirements,
and consequently there is a large demand for
it. The region as yet, has not been fully
developed, and there is no telling how the
field will turn out.
The shippers of this city are now realizing
what they have to contend with, and as they
labor under great disadvantages in shipping
coal from Monongahela river mines, the
formation OF combination OF Pittsburg coal
firms in the immediate future is very proba-
bic.
One of the most extensive operators in the
city talked about the matter yesterday He
said: 1--WE have every reason to combine
in our business, and if the coal operators do
not do it, l predict that within three years
our business will be ruined. We are not in
a position, with such excessive taxation, to
mine our coal profitablv, to stand any
chance against the Kanawha river ship
pers, who are at present sending great
quantity OF coal in to the Southern market.
which is not to be compared with our prod
uct. but it burns, and the region is not
fully developed yet. In my opinion a much
better grade of coal will be found there ere
long.
ARGUMENT FOR FREE RIVERS
"If the kanawha river operators were
burdened with tolls for locks, such as we
have to pay on the Monongahela, we might |
stand some show, but at present we can do |
nothing, and until this proposed pool is
formed, they can underselI us. So far the |
shipments from the Kanawha have been |
very light, but the field is one OF great
promise, and unless we do something, and
do that at once, we will some time find no
market for our coal in Southern ports.
with the exception of one or two large |
firms, all the shippers favor consolidation, |
and vigorous warfare against the Kanawha |
shippers for about a year would compel our |
rivals to leave the business, but the longer |
the combination is put of, the harder it |
will be, for that would enable those now
working the region to branch out, and if |
not forced out of the business, they will, at |
least, cause us considerable more trouble, |
1t appears to me that the coal operators are |
giving no thought to the future, and while |
these few firms remain obdurate and refuse to
enter into the combination the rest continue
at I, hammer and tongs, and try to exc out |
small profits on investments that should
yield 100 per cent larger returns. Last year
several coal shippers effected a combination
on the quiet and tried to improve the con-
dition oil business in that way, but it was
discovered that one of the largest firms here
was uDderselling the syndicate at Cincin-
natl and Louisville, which resulted in break
ing up the combination, and the venture
was disastrous to every firm in it, several of
them being nearly pushed to the wall in the
crash that followed. The outcome of our
efforts to maintain prices was that several
firms were compelled to retire from the bust
ness.
ONLY ONE OBSTACLE.
1.-THE only obstacle to prevent the con-
summation of the syndicate this year is the
same firm, it still refusing to enter the
project. The other operators are unwilling
10 nave 10 uo Will IL unless IfllS |
one firm joins the pool. There may be good
reasons for this firm remaining out, but
they nre not apparent Last year they
shipped more coal down the river than all
the firms in the pool, and sold it without
profit Some operators have concluded that
this firm is largely interested in the develop
ment of the Kanawha river region, but this
rumor is generally discredited.
IAN attemp will be made to induce every
shipper to go into the deal, and it is thought
that it will be successful
sit will be question of the survival of
the fttest, concluded the operator quoted,
''if this firm refuses to join the syndicate
this time. The majority of us are deter
mined to act in unison, and bitter warfare
will be urged against the Kanawha river
operators and the Pittsburg firms who refuse
10 enter the combine"
The gentleman talked in a strain that
showed be was in earnest in his intentions.
That something must be done to save the
coal shipping is acknowledged by
L great many coal shippers, and develop
nents in that line can be looked for shortly. |