New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-20
SUNDAY EDITION.
MARCH 20, 1892.
THE READING COAL DEAL.
MIDDLEMEN GIVE THEIR TESTIMONY.
THEY DON'T GET ALL THE PROFITS. THEY SAY
-WoPK Of THE SENATE COMMITTEE.

the Hotel MetrODOle IN an attempt 10 ma ont JUST o"
much Of an anthracite monopoly the Reading the Le-
high Valley and the Jersey Central railroad people
have succeeded In organizing held another session at
the hotel Yesterday Chairman Mcmahon and senator
NcCaren were the only members of the committee
present but testimony taken just the same me
testimony went 70 show that the bulk of the ln/ey
pad out by the consumers Of coal finds its way INTO
tbe rockets of the retail dealers. Yesterday was the
day when the middlemen were 10 have their say ana
they had II.
At the last session the three railroad presidents gave
testimony to the effect that the combine would reduce
the price of coal to the consumer 10y Just 50 mnch
profit as the mddemen heretofore have eNacted' inns
statement is cOmbacd by the coal men, and yesterday
they gave their reasons
sergeant. at Arms f. A. Tallmadge served subpoenas
pn nine men 10 appear yesterday. but they dld not
all respond Those who were subpoenacd were r. IL
Mead president of the Pennsy lvana Coal Company :
W. A. street its secretary W. IL. zeger. and Samre
Thalter of the same company; Joseph Stickney, n .
Swords r. II. Williams and II. L. Barrett OF 'he
Lehlgh Valley Coal Company. Daniel &. Grimm Oh
Watertown, chairman of the Executive Committee
of the Democratic state Committee. was on hand to
act as counsel for the investigating committee
Richard II. Williams, Of No. Broadway
wholesale coal dealer, the first witness. lie
ssdd he dealt chiefly with the Erie Railroad
Are you what is called middieman - Senator
Mcmahon asxof him.
Mr. Williams replied that he
what is fair profit for the middlemen"
From 10 TO - cents ton" the reply.
Mr. Williams said that he recognized about six COM
petitors-the Pennsylvania Railroad, the Ne"-l0rk
ontario and Western. The Delaware and Hudson, the
Lehgh Valley, and the Reading "The method by
which the Lehgh Valley and Central Railroad Of New
Jersey operate in New York" said he, is by selling
to large commission houses Fifteen cents is gen.
orally made by middlemen on each ton but compet
ton has cut the price down somewhat
as the price of coal increased by the middle
men ?" he was asked.
sometimes 1t generally happens when there is a
strike
When asked il he knew of any way by which the
price Of could by the railroad companies
and by the middemen in order that the consumers
should not have 10 pay much for it, the witness said
that the middlomen hardly hardly made anything out
Of 1t as it was.
There is no money in coal at cents ton for u.s.
said he. I'VE make little at 10 cents, but
nothing at cents. Sometimes 1t is as low as cents
But the price the consumer pays is too high" said
Mr.. Mcmahon. "Who makes all the money -
at is not the middemen.7 the reply. eve
are handling coal as cheaply as We can under the
present system"
Mr.. Griffin asked Mr.. Williams what good, in his
opinion, such combination the Reading deal could
do toward lowering the price Of coal and this was his
reply:
Il think that such large combination could save
much money. and that in the end the prices to con-
would be lower
The next bit Of testimony brought ont by
Mr.. Grihn's questions showed that the
dealers were in position TO keep up prices, and That
II only needed the consent of ten men 10 make the
increase Hero is what the witness said Oh this
subject:
An increase of so cents a ton in the price Of
coal throughout the State is not considered big III
crease. Some of the dealers during informal talk
time ago decided that the price of chestnut
coal too low and an increase OF 20 cents q ton
was agreed upon"
"How many were present at this informal
conference?7 the witness was asked.
About ten.'
@Was there any trouble in keeping up the prce7"
aNot In this case The ten agreed upon a
q5-cent increase and 1t kept there without any
trouble"
~Then the mddlemen have nothing to do with
keeping up the price," said senator Mcmahon
"No, sir. The dealers do that
L. r. Barrett, a sales agent for the Lehigh Valley
Coal Company was the next witness. lie said that
he was not a middleman but salaried officer.
ALTHOUGH sell TO the retailers" said he. some
times sell to the middlemen."
awhat is the profit made by retail dealing in
Lehgh Valley coal p the witness was asked.
"The maximum profit is about 81 80 on the tom
said he "The retail price fuctuates less frequently
than the wholesale price. What mean by al 80 profit
90 the ton made by the retailers is the difference Dc
tween the price paid to middemen and that cha ma
10 and the carriage ETC. Is pald OUT VI IT,
Do YOU know what the net profits are "
do not but sak w Shsy a M p Tam said
asto the reason for the RE q, ne e o. deal o would
ssT u a increase in prices There are com
petors In the held to keep the pIce, oOw' sa1 me-
Delaware, iackawanna and Western u per cent
the Philadelphia and Reading - per cent anu ,h tte
lehigh Valley about "A per cent OF thc ahtmacIlo
Then the combination represents about 70 per
Grimm GRIN o. '"e aD'll1'' ,,s ,.,,v
Mr. Barrett also said that some Of the retail
dealers had often said to him that they wished the
Mr. Barrett in closing his testimony said that +,
uniform price for year , eo Mr H GnS. low cam
there be fuctuaon in the price Of anthr'cs coz
when one man controls 20 per cent OF the output
Coal is always cheaper in the spring than IN ne
lall,H was the reply and nothing can chaHse ,lin
round and naturally inducements VIII be- maze 10
consumers get them 70 purchase In the Spfins ana
=. r. Meade president Of the PENNSYLVANIA Coal
Company said that most Of the coal he handled was
furnished nv The PENNSYLVANIA Railroad Company. lo
gave general idea Of The way coal was landed d.
his company from the time 1t lett tne mines ui''i !"
@sCmctiRes the agents Of the company owning the
mines sell the coal direct" he said aud sometimes
II passes through the hands OF the middlemrh' VINO
receive a commission of about cents on The t1 on
product is consumed in NewYork and IS sofa by us
SrssS n to The ]Gs17 retailer s' an S%g@' from
to % cents the ton. generally about - cents o.,
The last ~t Ta ompy VINO is employer 10
Inarkct the coal on the lines Of the Erie and New
York and New England railroads.
Do you know Of any company that ever lost
monev In the production OF coal p he was asked.
"Yess was the reply. From 1876 TO 1913,
do not believe there was Il ton OF coal sold at Il
proft.D a.
Mr. Swords will probably be again placed on the
stand next saturday. al 10 80 a. M, to which tme
the committee adjourned.
GOVERNOR ALBEIT WARNED.
Asbury Park March 10 epecla-EX Assemblyman
David II. wyckon lifelong Democrat and one OF
the Justices OF the for Monmouth County, has