Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-11-26
A COMBINE ADMITTED.
President Mcleod, of the Reading
Railroad, Is Quite Candid
WHEN UPON THE WITNESS STAND.
He Gives His Investigators Number Of
Valuable Tips.
HOW THE PRICE OF COAL HAS GONE UP


| NEW YORK, Nov 25.-The Congressional
subcommittee appointed to investigate the
Reading coal combine, met in the Federal
| building this morning. Congressman
Coombs, of Brooklyn, occupied the chair,
Archibald Mcleod was called, and testi-
fed that he was president of the Philadel-
phia and Reading Railroad Company, also
president of the Reading Iron and Coal
Company, the capital stock of which was
Sc, ,000, 900, and the total acreage controlled
1881 acres. The price paid to operators,
said Mr. Mcleod, was GO per cent of the
price at tldewater. Prices were fixed by
the general rate agents of the various COM
panies interested. They generally hold
their meetings in New York. These meet
ings are usually attended by Mr. Holden,
representatives. of the Ontario and Western
Railroad, and representatives of the Phila-
delphia and Reading Coal and Iron Com
pany A circular was issued at the meet
ing held in June or July, advancing prices.
Circulars of prices issued are generally the
result of these meetings. The Western
Sales Agents meeting is substantially the
same rs the tidewater meeting. President
Mcleod said he had not attended any Of
the meetings of the Western Sales Agents.
One Company Owns the Other.
Continuing. Mr. Mcleod said the Phila-
delphia and Reading Railroad Company did
not own the coal transported over the roads
of the alleged combine, but the Philadel-
phia Coal and Iron Company did, and the
former company owned the stock in the
latter.
Chairman. Coombs, of the::committee, said
that year ago he got coal delivered in
Brooklyn at 81 85 and S. per ton. This
year he had to pay 70 cents more. He
wanted to know ii this increase in price
went to the rail dealer and to the pro-
ducers.
Mr.. Mcleod admitted that the producers
now received more for their coal than
year ago.
Congressman Patterson wanted to know
the difference between the prices of coal in
Philadelphia, near which place it was pro-
duced, and in New York City.
Mr. Mcleod said that he would ascertain
this fact and make statement later.
Mr. Patterson asked what percentage OF
the coal transported by the Philadelphia
and Reading, New Jersey Central and Le-
high Valley Railroads was produced by
those companies
The Big Share Is the Readings.
Mr. Mcleod said the Reading,
through the Reading Coal and Iron Com
panv, produced 80 per cent of the coal
which it transported; the New JERSEY Cen.
trail per cent OF the amount which it
transported, and the Lehigh Valley Is per
cent Of the amount which it transported.
Mr. Patterson wanted to know how the
price of coal produced by these railway
companies was controlled.
MI. Mcleod said the representatives of
the producing company got together and
computed what the demand for certain
period would be and what supply was on
hand. They had found that if the prices
that prevailed year ago had been adhered
to the producers would have become bank
rupt. Each producer had agreed to place
only the amount on the market that they
reckoned would be consumed. In this way
the flooding of the market and unreasona-
BILE depression OF prices was prevented.
The roads, he said, had nothing to do with
the prices of outside producers which they
transported The coal transported and pro-
duced BY the three companies mentioned
was anthracite coal for the most part. The
coal produced by the other companies was
tor the most part bituminous coal.
Why Anthracite Is Shipped Cheaper.
The three companies mentioned, however,
produced the greater part of the anthracite
coal of the country. The railway companies
charged 8 mills a. ton per mile more for the
transportation Of bituminous coal than they
did for their own anthracite coal, for the
reason that they had to count for storage in
the case of the latter and did not for the
former.
President j. r. Maxwell, of the New
JERSEY Central, was called to the stand.
He said that neither he nor any of his repre-
sentafives at present attended the monthly
meetings between the representatives of the
and Reading and other COM
panies in regard to the price of coal. He
was, however, represented at such meetings
prior to last April.
The committee then dismissed Mr.. Max
we'll, as testimony had already been given
before the New Jersey State courts that the
New jersey Central was not now connected
with any combine, which was satisfactory
to the committee. The committee ad-
journed until 1870 o'clock tomorrow morn