Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-03-21
COAL MEN UNDERSOLD
How Two Ohio Railroads Have Made
Local Operators Very Weary.
THEY FIXED THE SELLING PRICE,
And Mined Cal for the Money Made in
the Transportation.
STRONG PROTEST TO THE RAILROADS


An important conference of railroad coal
operators from Ohio, West Virginia and
Western Pennsylvania will be held at the
Monongahela House to-day to try to agree
on selling price for coal and to discuss the
question of rates to the lakes The Pitts
burg and Hooking Valley operators have
Joined hands to fight common enemy, and
they have asked the railroads to help them
or they will be forced out of the business.
The time was when the Hooking Valley and
Pittsburg people fought each other about
different;als, but in recent years the Cleve-
land, Lorain and Wheeling and the
Wheeling and Lake Erie roads have been
the disturbing elements.
| The lake railway officials met here two
weeks ago but failed to come to any con-
clusion about rates to the lakes. The pres
ent rate from Pittsburg is 80 cents per ton,
and differential of 5 cents is allowed the
Hooking Valley people. Pittsburg coal
sold for So rs per ton last year in the lake
markets, and 25 cents is given to the Hook
ing operators on account of the inferior
quality of their product The local coal
men are willing to grant the Hooking Val
ley operators these differentials in price
and rates. The Hooking coal, therefore,
was sold for 50 per ton.
Railroads Mining Their Own Coal.
If the two sections mentioned controlled
the coal output everything would be lovely,
but, unfortunately for peace and harmony,
T e.
Lake Erie roads own and mine their own
coal lands. With them the coal business is
side issue, and they don't care what they
get for the coal as long as they receive the
specified rates on the railroad. The rail-
rates, and the two lines named maintain
them with the others, but they undersell
their competitors in the lake markets.
Their coal is vastly inferior to the Pittsburg
article, but that doesn't make much differ
ence
These two lines fix the market price of
coal, and the other operators are placed at
great disadvantage They maintain the
railroad rates according to agreement, but
they do not hesitate to knife their competi-
tors when it comes to selling. Here is
where the shoe pinches. The Cleveland,
Lorain and Wheeling and the Wheeling
and Lake Erie coal was sold last year for Is
cents per ton less than the Hooking Valley
and about 40 cents less than the Pittsburg.
Now the other operators have appealed to
the railroads to discipline these two lines
by fixing the rates go that they can't be
undersold so easily. The railroads replied
by asking the operators to agree on a selling
price for coal, and they would make it the
basis for rates to the lakes. The operators
have tried every year to arrange selling
price, but so far have failed. They claim
they are coming together to-day in friend
ly spirit, but nobody knows what will be
the outcome.
The One Disturbing Element
The Hooking Valley operators met in
Columbus last week to agree to some line
of action, but they failed to come to any
conclusion. The local operators say they
do not object to the present rates, if the
railroads would only keep in check the
Cleveland, Lorain and Wheeling
and the Wheeling and Lake Erie
roads, The latter company has exten-
sive tracts of coal lands in West Virginia.
The rail rate to the lakes is 10 cents more
than from Pittsburg; They employ natives
to mine the coal, and pay them considera-
bly, less than miners receive here.
Their coal is also nearer the surface, and
has most OF the fuel qualities Of the Pitts
burg article. With these advantages the
Wheeling and Lake Erie road can easily
overcome the difference of 10 cents against
them, and undersell the Hooking Valley
and local operators. The latter claim the
problem is for the railroads alone to settle
if they wish to retain their coal tonnage
from Pittsburg to the lakes. The Wheel
ing and Lake Erie road last year acquired
considerable coal land in Jefferson county,
and they have been using the output, it is
claimed, to make a good showing for the
road, content to receive low price for the
product
Another point in favor of these two Ohio
roads Is that they do their own transferring
from the cars to the vessels. 1t costs them
about 10 cents per ton. The docks at
Cleveland and Fairport are controlled by
private capital, and the Pittsburg operators
are charged from IL to 20 cents for transfer
ring. They think the railroads should pay
the cost of transfer, and this would give
them better opportunity to compete with
the Ohio and West Virginia coal men.
Harry Oliver owns the Fairport docks, and
it is claimed he made $25, 900 last year in
transferring coal. However, some of the
operators do not believe that his profit was
that much.
A Demand for Protection.
The Pittsburg operators insist that they
have done their best, and it now remains
for the railroads to protect them, or they
will be forced to quit. The officials Of the
Pennsylvania Company at last realize that
the local coal industry is in danger, and
they are willing to make concessions. The
coal shipments are small part of their
business to the lakes, and being strong
line they are in a position to dictate to the
Wheeling and Lake Erie and the Cleve-
land, Lorraine and Wheeling roads Un-
less the operators can reach an amicable
conclusion about the selling price the local
lines are expected to take vigorous action.
A number of Ohio operators arrived last
evening for the meeting. In the party are
j. s. Morton, T. s. Brooks and w. S.
Courtwright, of Columbus, and G. Morris, of
Cleveland.