The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-02-24
THE PRICE OF COAL.

The Philadelphia & Reading railroad
has acquired by lease, purchase and other
wise complete control of the Lehigh VAL
ley, New Jersey Central and Delaware &
Lackawanna railroads, which puts it in full
possession of three-quarters of the anthra-
cite coal region. This combination brings
under one control nearly 5000 miles of
railway, so that the Reading railroad has
extended its coal traffic to Lake Erie on
the west, to the New Jersey coal wharves
on the Atlantic coast and from Philadel-
phia and the Susquehanna river to the
middle of New England. This makes a
railroad combination nearly as large as
that of the great Pennsylvania corpora
ton.
The new coal combination will substan-
TALLY control the anthracite coal-carrying
business and the greater part of the an
thracite coal supply. 1t represents capt.
tai of more than half billion of dollars.
The effect of the deal was, of course, to
advance the market price of the coal rail-
roads. On one day the sales aggregated
1887, 476 shares, against only 1,074,OOO
shares in one day of December, lSS6-the
highest previous record.
Reading led the market with sales of
about 1900, 900 shares for the week follow
ing the DEAL and with a net advance in
price of 1873 to 5Sss closing, and touching
as high as IS during the week. Jersey
Central, one of the leased lines, gained IL 4
points to 1877, touching as high as 140.
Lackawanna gained SIS points to 1898
closing. Lehigh Valley (par 50) advanced
to above Goa gain of some points. As
the Reading has also completed connec-
tons with the New York d. New England
by way of Poughkeepsie bridge, that stock
also jumped up, making net gain of 355s
points to 5034 closing. Delaware & Hud-
son rose points and there was great &C
tivity in Erie common, which gained "a.
Unless very large savings are effected in
the distribution of coal by the new trust
prices of coal must be advanced, for Read
ing guarantees Z per cent. on New jersey
Central and per cent. on Lehigh Valley
for one year after next July and per cent.
thereafter. The Eastern press, while adj
the anthracite output, expresses grave
doubt whether consumers of anthracite
will stand higher prices. Higher prices
for anthracite, the New York San thinks,
will reduce the consumption of anthracite
and increase that of bituminous coal, just
as the consumption of high-priced bread
stuffs falls off in times of scarcity such as
now exists in Europe. Economy in the
use of anthracite and the increased use of
cheaper coal are like to disappoint the new
combinations expectation of greatly in
creased earnings. The Springfield Repub-
tican says:
A number of trusts have tried this game in
other commodities, and very few of them have
succeeded to a great extent Some of them
have recently been loored gloriously in the at
tempt And in the figuring of gains to come
from economies effected in concentration of dis
tributing agencies there is likely also to be
disappointment The cordage and other trusts
have been advertising these advantages good
deal lately, but we notice nevertheless that they
are Obliged to report more and more solieitousiy
as the days go by that outside competitors who
enjoy none OF the advantages are giving them q
life-and-death rub in the general markets.