Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-08-20
THE COMBINATION METHOD.

The determination of the anthracite
coal combination to advance prices fifty
cents per ton on September 1, has been
accompanied by suspension of work in
the mines along the Reading. The mines
are shut down for one-third of the work
ing days, with the additional direction
that on the days which the men may work,
the working hours are to be restricted to
nine per day. 1t thus appears that the
last effort to enforce the combination re-
striction cuts both ways. The consumers
of coal are to be forced to pay higher
prices; and that the enforcement may be
a success the miners are to stand idle one
third of the time, as a start, with larger
proportion of idleness, as further resort
| in the future for screwing the price still
higher
This is not new feature of the anthra-
| cite coal combination or any other pool
which seeks to maintain arbitrary prices
by artificial scarcity. But the antecedent
circumstances bring out its unjustifiable
character in the strongest relief. During
the summer it has been demonstrated that
the market will absorb supply of coal
striction, even in the season Of ightest
consumption. The plea that the agree
ment is to produce the amount of coal
that the market will take has been shown
to be shallow deception. 1t has been
made clear that at the reasonable prices
established by fair competition, there
would be an immense expansion in the
volume of the anthracite coal trade, labor
could be given steady employment, and
the economic waste of idle machinery and
capital be stopped. But the affection of
the combination element for the method of
making money by exorbitant profits over
rides all these considerations, and the at
tempt is renewed to put in force the
policy of restriction and partial idleness.
Next to the inhumanity of the deliber-
ate policy of making fuel scarce and
higher for the consumers of coal, by the
means of making wages scarce and lower
for its producers, the salient feature of
this policy is its offense against intelligent
economy. 1t is plain that if 10 cents per
ton is necessary to pay return on the
mining capital invested in machinery and
deadwork, with production of 100000
tons, twice the production with the same
plant would yield the same interest at
cents per ton. The same is true of
transportation. If railroad has carry
ing capacity of 10000, 900 tons per annum,
the portion of the charge necessary to pay
interest and dividends, will have to be
twice as great if only 5,0O0,0O0 tons are
transported. If it required an enlarge
ment of plant to enlarge the production
the proposition would be different. But
in the very statement of the anthracite
coal situation we have the fact that the
machinery, transportation lines, and labor
are all present to produce much larger
volume. All are to be kept in partial
ideness in order that prices shall be raised
not only enough to pay for the economic
waste, but to yield exorbitant profits in
addition.
Some time the nation will be advanced
enough to see that this is conducting
great business on medieval and stupid
basis. But the approach of that period of
enlightenment in corporate enterprises
appears at present to be rather crab-like.