New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-09-08
Mr.. MIEOD'S EXPLANATION.
WHY THE READING HAS RAISED THE PRICE
OF COAL
AT THE OLD FIGURES THE BUSINESS WAS cN
REMCNERATIvE, HE sAYs--wHAr THE


n meeting nj the Murray IIll Hotel yesterday hloii
ing to Inquire into the causes Tor inc rcc'"' "
In the price Of coal and TO learn Whe'nci SUI" '
vance wus due in any way TO the uihs"c''o'' "'''
as the Reading Coal Combination Inc me"'pe'e Vi
tho committee are senators Mcmahon, Cantor saxton
Erwin Hogan Endcrs and McCarren Chairman NAV
Nabon was the only member 10 put In an appearance
ond tho committee was represented by us counsel,
Daniel G. Griffin, OF WATERFOWL ana lhomaS 'achSon'
ona nv Senator Thomas O'Rourke. Sergeantat-Arfns
,rallmadce of the Senate. was also present. Inc
philadelphia and Reading Railroad Company and the
Reading Coal and Iron Company were represented by
their president a. A Mcleod; their socitorsenerai
7 ID Campbell and their attorney, J. +. schaper-
hotter Samuel T. Peters, OF williams & Peters. NO 1
broadway represented the Wholesale coal interests OF
this city, and Peter Dewitt. of Dewitt Co.. No. III
Broadway, was for the retail coal dealers.
BY far the most important witness was President
Mcleod Of the Reading system. who unfolded TO the
committee some of the plans OF the companies which
he represented The bulk of his testimony consisted
OF the following statement which he read TO explain
the rise In the price OF coal and the Readings c0nnec
ton with the movement:
see statements In the public press, well as state
ments made under oath before your committee
ing the advances made coal, which were eagerly az
trbuted to the that have made that In
my opinion. very misleading, and so far from the
may chaftaby attribute them to Ignorance
OF the business.
subject with eandor and fairness persist In max
ing comparisons Of prices with the abnormal and
prices Of January 1892 instead Of making ther
comparisons with the prices Of similar periods OF previous
years.
speak Of the prices Of January, 1892. unnatural
and abnormal for reason 1t is well known In tho
trade that time large quantities Of coal were
forced upon markets by certain large operators with
the deliberately avowed purpose OF breaking down prices
u, so low point compel the trade 10 take measures
he To
surte with the demands Of the market The Reading
was not party u the movement. and did not meet the
cut rates. Consequently the prices now used for the
purposes of comparison only below the prices
which ordinarily prevailed at that OF the year. bus
are much lower than prices Of the Reading Company
At that time.
The attempt also been made convince the public
that unwarrantd advances have been made within the
nast few months and while there been advance
between the dull months and the more active PERIODS
It is tho which has been practsed for years
and as matter OF fact, when comparisons are larry
made with the same periods is shown that the ecua
average advance been only 372 cents per ton as
Will appear by official circulars which are as follows
July, 1891. july ioSi' IN,
Fog ....... 90 hestnut ................. 3 10
Showing an average Of So 92l2.
The circular prices for July and August 1892 are
as follows 90
broken ........s4 90, stove .:...........--' 40 40
Nss Showing an average Of a. 30.
II must be observed by your committee that the aver
ape advance in the price of coal sold by this company
In July and August, 1892, as compared win "io ~
n,onths of 1881 has only been 37i2 cents ton
Much has also said by those un1cq"antu WIN N0
Whining NJ anthracite coal criticism OF suppsed ui'
warranted restrictions In the production No'''"s -
be more unjust those who are honestly ens'so" "
tina business The fact Is the capacity Of all he
existence to-day is equal 10 the pioiucuoh'
kent running constantly of 55OCOoO0 OF tons "hee"'
the market will but 100000 1t must therefore
be plain even " those unacqualten MIN the UuS'''
that the colleres must stand IDLE Tor l=o DAYS at soo
period during each year avoid Cutting The hafHeS
and bringing about such condition OF the trade as "odi
cause bankruptcy and ruin ali those engaged IN the
business
therefore involuntary suspension OF production ana
not restriction that forced upon the producers whe
they find that will longer take their proauet
The truth is that Philadelphia and Rading Coal
and Iron Company has in store to-day al inc various
points OF distribution throughout ue eornuy hoH'
80 600 tons Of coal hand 20 70 tht consumers
when they are ready take IL. And yet the capacity
Of the coeries is much greater than me demands OF
the market that have been obliged 10 suspend the
operation OF them three days duIne every week Tor the
last three mO1ths
IL you should ask me why do not reduce the price
on our coal to get rid of 1t 1 would answer:
That all the coal produced oy our Company
the year 1881 costs US III Tue carr al INC %
TO MnIen mus. be uddcd the loss on snail sizes 80
Freight TO jersey CITY ACKNOWLEDGEMENTS. W
rSSnssi on OI paid To- midemen 10
ro,a, %
This is the total cost Of delivering ton Of coal at
Jersey City anything for the coal IN tle ground
OF interest, depreciation OF the pant producing H.
II 70 be added 30 cents royalty ana 20 cents
for interest depreciation Of the IGsnt producing the
coal 1t will total OF ST So and the average price
received for prepared NcwYOrk today is - 80
showing an actual loss Of IS cents per ton Bear IN
mind these figures include nothing for what have
beon pleased TO cali woteed s'ock or any capital which
may have been wisely 0. unwsely Interested IN acquiring
unproiuctiNe lands
To explain the item Of loss on small sizes. l beg TO
inform you about so per cent OF entire pro
ducton Is OF smaller than chestnut coal and
only be sold the markets competition With btumnous
coal for purposes. The production OF these small
the mine just much per ton prepared
coal. in the mining and preparation OF coal they all so
through the process ana the price, ans
therefore It must be plainly usat size Of coal
costs the miner just much the other size. Tho
prices reazcd the small OF coal by company
for the ast resulted in loss Of 81 90 TIN.
Tho question nay be asked "Why put these small
sizes the market at such tremendous loss ;" As
already stated these different sizes necessary pro-
duction Of the whole coming from the breaker
and they not sold at the best prices obtaiuabe,
they would have 10 be thrown int the bank and
prepared sizes would cost just that much In
words. the prices which obsined for the
sires are credited against the cost Of the whole.
little figuring will make IL plain that t,is 80 40
cent. the loss ton the cost OF production OF the
smaller sizes as stated above must be added 70 the cost
production OF the other Sizes ara "hch so auced inc
prices obtained for oil sizes must be such viii
reimburse tue miner for all.
When had the pleasure or appearing before the
nttee In the spring, expressed the opinion that in
We should DO enabled put into operation the pa,
had under consideration. they need not necessarily materially
advance the price of coal 70 Consumers.
ind that advantage has been taken by tho-e who
unfairly opposing plans circulate statements based
upon what said that time. and constituting my
into OF pledge that prices would not bc ad
yanced beyond abnormal prices which ruled carly
1892 Nothing could been further from thoughts.
On contrary, did have IN mind the average prices
which ruled for yea. with the exception % periods
Of unnatural depression. the result Of ruinous
petition which upon several occasions has brought those
engaged in this busins 10 the verge OF bankruptcy and
now state that Losing the estimate upon such prices
and the establishment Of such large retail depots
I'm ALI the principal res country and