The Jersey City news., 1892-02-16
BUY YOUR COAL AT ONCE
Extremely Probable That
Prices Will Take an
Early Jump.
VIEWS OF THE TRADE ABOUT 1T.
March | Named As the Time, and
81 a Ton the Figure-But
Summer Is on the Way.

luz up, Auu Ill u Llduacl bhdu w III SoaoO
considerable excitement among heavy
consumers. With but one or two excep-
tions every anthracite retail coal dealer
in this city used to get his supply either
fror1 the Central or Lehigh Valley Rail-
road. The consolidation of both these
companies with Reading places the max
ing of a market price in the hands of
what is, to the retail dealers, virtually a
foreign element. When the Reading ad-
vances it's price-and it. is understood
that the advance will be twenty-five
cents per ton-the retail dealers will be
compelled to raise the price the same
amount, perhaps more.
The Reading Railroad Company, under
the recent consolidation. controls as near
ao can be estimated u per cent. OF the
known supply of anthracite coal and now
controls more than s. per cent. Of the
trade in the same material The remain
ing % per cent. of the supply Is held by
individual dealers. who naturally control
the remaining Is per cent. OF the trade.
WAR AT FIRST.
The real object of the consolidation OF
the Central and Lehigh Valley Railroads
under the Reading is the wiping out of the
Individual coliiery owners. This will be
done by cutting prices at the start, so no
profit Will be left for the small companies
or else by increasing the freight rates.
l.. speaking with d gentleman, connect
ed with one of the largest individual
dealers whose Office Is in New York, he
said:-
."rhe consolidation Of the Central and
Lehigh Valley Railroads with the Read
ing is death blow to individual miners.
In the first place the Reading, as 1t stood
before the consolidation, practically con-
trolled the anthracite coal trade. The
company's coal fields are inexhaustible.
The company was making barrels OF
money even at the present rates, but the
projectors of this scheme saw millions in
a consolidation. A dividend of 7per cent,
will be nothing for such corporation.
''The consumption Of Re aiding coil was
something enormous. 1t was sent to all
parts OF this country and Europe. But
the Reading was handicapped in the mat
ter of competition. A real live coal war
has not been on the tapis for wears, but
such confiicJ would have meant disaster
for the Reading people. They mine their
coal as cheaply as anyone, but when it
came to getting it to the great shipping
and consuming centre, New York, they
were completely at the mercy of the rail-
roads having outlets on New York Bay.
The Reading Company began building
track of its own after securing an outlet
on the Kill Won Kull.
WELL CONSIDERED PLAN.
"No ", if this deal had not been dis
cussed for months, it Is my opinion that
the Lehigh Valley and Central Railroads
would have boosted the freights way up
into the air. Under the new management
freight rates will be reduced to about
eight cents per ton, whereas 1t was up to
thirty-two cents. There alone is a saving
of twenty-four cents per ton. Now esti-
mate, if you can, the profits of a concern
that will handle such quantities as will
the Reading when they have the monop-
o1,- ~ oil la ha16 the CaufrQ1
Valley Roads. Individual owners of
mines will be swamped and the Reading
people will fix the price OF coal up to suit
themselves"
"Do you think that this consolidation
of roads means death to competitions" |
asked.
at means nothing else, he replied.
What can few individual dealers who
'bnck' against each other, hope to do
against SO gigantic corporation as the
Reading now is?
"The coal trade, like every other trade
under similar circumstances, will be con-
trolled by ring. and fight made by a
few individuals will have no effect. In
diyidual owners are at the mercy of the
railroads, and ii the Reading puts up.the
freight on all its lines the individual
dealers will have to pay it and so be
helplessly handicapped
''The Reading has the upper hand, and
1t is the general impression that the
screws will be put on in a very short
time. Individual dealers will have to
succumb and then the consumers will be
at the mercy of the of the wealthiesr cor
porations in the known world-and such
corporations huve never had much repu-
tation for liberalitv."
LOCAL DEALERS RETICENT.
Local dealers in anthracite do not seem
inclined to discuss the situation, but from
the tone of several whom interviewed
inferred that they were Indifferent as to
anv contemplated advance. In fact, some
of them think that an advance will give
them wider margin to work on, but
will put stop to competition, as all coal
will be delivered from one source.
AT OTHER PLACES.
A clerk of the Hoboken Coal Company
remarked
"If there is any competition 1t will be
of short duration, and the dealers who
are doing the most business can close the
shops of small dealers by cutting the
prices Just little when the demand is
heavy"
The outlook for, consumers is not
bright, and there is at present no pros
pec' Of individual miners beginning
coal war with the Reading.
AT the offices OF Stickney, Cunningham
q, Co.. Coke Bros, Van Winckle, Stout
4 Co., and f. A. Potts, nothing can be
learned of what move these, firms, who
are classed among individual owners OF
colleries, would make.
From gentleman who is we'll versed
nm the coal deal l learned that it was
probable that the individual miners
would be taken under the wing of the
Reading, stated dividend being paid for
the use Of their colleries for the purpose
of simplifying only the trade they now con-
troll. The gentleman said 1t was probable
thtt the individual miners would consign
tbeir rights in the coal trade to the Read
Ing s
tre of the coal industry, tells what is go
ing on. The colleries in the Schuylkill
reSion are now being worked on short
time and the Lehigh and Wllkesparre
Coal Company, it is reported, worked its
hreskers only two days last week. Coal
prices are firm and operators are declin-
ing to accept contracts for delivery after
March at the present rates, denotlng
that an increase is then expected
READINGS SECURITIES.
The Reading holds in its clutches SlS0.-
ooo 00O of its own securities, Sl0O 900 of
Tehi~h1 and about $25. 900. 900 of Central.
1,he holding of these securities, says the
ConL RepoTt, brings the securities OF
other roads into their hands and total
of s58O 600 900 is virtually placed in their
hands The consumption is 10000, 600
TONS ner annum, and from this dividends
must be paid upon the 3000o,0 900. At
ner cent. the dividends would amount to
S21, zoo, ,OOU or a profit OF fifty cents on