New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-06
Mr.. SAGE'S VIEWS ON COAL
HE DOESN'T BELIEVE IN MoNoPoIIEs.
TIE LEGISLATURE, HE SAYS, SHOULD INTER
FERE-sIDNEY DILLON ALSO WITNESS

Jersey Central Lehigh Valley and LaekswaIna rail
roads held another meeting yesterday at the Hotel
Metropolis. The best witness Russell sage. who
took the committee into his confidence and aired
his objections to all combinations the price
Of the accessories OF lie. batch Of officials OF the
Central Railroad OF New-Jersey were examined, out
without ellciting any startling information
Senator Mcmahon, chairman Of the committee, pre-
sided. The other members present were Senators
saxton, McCsrNn and Cantor. The counsel OF
the committee, Daniel G. Griffin, Of WATERFOWL, was
assisted by Thomas Jackson.
Sidney Dillon testified that he had been a director
Of the Lackawanna for eight or ten years up 10 inc
last election. when he and Russell sage went ont
lie only small stockholder Mr.. Dillon said
that lie had official i9tmation that he wonid go
out Of the Lackawanna BOARD. lie had heard rumors
in the street and Thought that the buyers Of iacV-
wanna would like Ia have voice in running tie
concern The men who succeeded Mr. sage ana
himself believed to b. closely connected with the
Central Railroad OF Ncw-Jersey. Mr.. Dillon said that
before the recent election samuel Sloan had told
him that a combination being formed aud that
some OF those Interested being heavy investors In
Lackawanna, would probably want representation In
the board. The witness told Mr. Sloan TINT he was
willing to make way FOR them. lie understood tina;
Ncses. Btkes ana Maxwell the new directors, mad pur
chased 100 900 shares and he thought natural thai
they should wish voice In the concern. Mr. DILLON sad
he knew nothing about tie combination beyond the
newspaper rcIbNs 10 Scb'tOi hN''o''"h SN ''''N
that he thought an advance in the price OF STOCK
OF the roads In the coal combination probable.
What would cause The sock 20 rsc!' asked
Senator Cantor.
TIE present rise was caused by there not being
enough stock 60 around, and people wanted to buy
MS" Mr.. Dillon answered; and continued ANY great
advance in tie price Of coal would hurt the roaos
but harmony will result in greater earnings"
Russell sage then took the stand aud gave some
interes ing testimony lie sid that his relations Win
the Iachawanna were similar to those OF Mr. Dinon.
lie retired TO le, the new into the board, hut
lad made no change ~ his holdings.
When they wanted TO make room for new men
vllcy found Won and Mr.. Dillon wllln. victims y sad
Mr. G.1f9.
That was about IT," was the answer.
Mr. sage said that the admission OF the jersey
Cenr:al Into the lackawanna Doa'u ""o =" ''
rcciprocatcd by the election Of TWO Laoai"'H,'
me, into the jersey Central bonrd. MI sage 'hough
ore object Of tie combination was 10 force up 'ne
nrice y. some OF the coal stock' which had oeeh
S anding at a low figure for some time. "i'hi
The last three months Lackawanna stock had oeeh
pentsfu at RON 100 10 140. while 1t was 10"
scarce al rom 100 70 1885, The eoinpanys ea'"i"s'
in 1890 represented Ic Per cent OF lis s.och VIM
In 1891 they were only . 1s per cent. Inc in'e9o '
IN price was not justified by the earnings All" '"''
therefore be due to II combination MY. sage lau "o
doubt that the buyers OF : ock al an ii'Ie"'eu Pe
,roud exrect 10 get their money back Ill some way
Thero was doub;e-s an understanding D''~' .a
close Interested, but he Thought 'lei0
grave doubts among some , The
o. 90 .l,o ultimate success, q, the combination l"eN
cannot put up coal too high. For 'hat Wowu e.e
from the West he said but they VIII douoNess i'
the price somewhat , A., ol
The combination is absolute master OF the coal
market is II not - asfed Mr.. Griffin -
.rhcy think themselves So answered Mr.. sage,
"They will put the price rs high as INC p'oi' wa,
stand They arc ice'nc the pubic pu'7c INV
know ym are meeting he.e and they know ula' u'Dle
49,. inyas,iratons going on in New jersey aud Penn
sylvania." 80, ,,,,, ..ourc
subsGes?" ~ .,,
No l do not Later they Will advance all theA
dare bnt there are difficulties. II yCu put up uc
mice Of coal you put up the price OF iron. The rail-
d ar, ,a,cr CONSUMERS OF iron and they cannot afford
o. aiso .be price Of thai TOO much lOa gentlemen WHO
l,ok after the vast interests OF the etau Oh Ne" io
have a great task TO investigate the SUBJECT III All us
hearings, do not believe all the details OF the com
binaf!on have been fixed"
n, sose said he never saw the contract between
the Jersey Central the Reading the lHlawanna anu
the Lehich Valley. lie thought the Lachawanha mao
,.er dra rred into the combination unwillingy ana
,vou,d rather have been left out. The fact that inc
Jersey Central people had 40 per cont OF the Lach"
wanna stock doubtless led the NclHwanna manage
ment into the combination. Inc Jersey 'ci''i'
would DrObabv be able IN case vi l''u " 6N' - -
cent more stock and thus have absolute control lie
aia he did not think such combinations often sue
coded and recalled one between the Jersey Central
and the Reading several years ago, when was d
cause OF great trouble.
senator Mcmahon asked Mr.. Sage IL he had any SIG
cestons 10 make, and he answered u DO not hio"
Tint have have been perfectly frank with you rs
o.,crallv am with people. do not regard these
c.,ob,natens with favor. II is wrong TO make com
l-a.,i. TO advance the price Of necessities. am
or<a; TO the continuation OF great interests IN that
way ,
senator Cantor asked with smile; You don't OBJECT
TO combinations advancing 'he price Vi "'o'"' IL "''
pIarkct, do yoH?'
Oh no." I've answered.
senator saxtou asked If lie thought 1t WOMB DC
proper for the Legislature 10 take steps 10 prevent VIC
nI co,r,notion Mr. sage said " Unhcsiiaungy,
think IL is the duty OF the Legislature to prevent the
coordination and the advance IN price of COAL
= NJ william, controller of the Central h"thoau
n, Sew.Jcrssy was the next witness. lie mad not
seen the agreement between the companies. TIC
understood that the four companies III the uedi iuou
20 per cent OF tie coal production. me co"ni'ee
spcnt some TIN. trying to get the Witness 10 eii le
,,rovisons OF the lease " the Jersey Central ny
,no Port Reading Company. The papers were
s,,hrittcd 10 him FOR suggestions but he cond
-,o. r,membcr details Finally nc was i'll
dpced TO say that draft Of the lease pFoVio"u
that the Port Reading should pay at least per cent
dividends on the stock of the Jersey central anu d
percentage OF the earnings above tha'. Inc jersey
Central had been paying per cent oVidehos ior n"e
,ron,be and six Der cent since 1883. The advantage
q, continuation was 10 keep the price Of coal Uniform
With the present cutting. it not the poor consumer
who got the advantage. lie paid the hlshesi p1oe
that was anywhere quoted. The witness thought 'hA'
the combination would ultimately make cot cheaper
Walter g. Oakrnan. vice president of uhe 'ehuii
Railroad of NewJersey, said that the great object 70
x.tn.d ly the comlina ION greater cCOuonlN f,
NO, the advance In The price OF coal Mr.. Grimm asked
him IL he had any objection TO legislation preventing
advances In tie price Of coal not by law to TX any p''oc
but to keep it within proper limits lie said that lie womb
NOT have any objection. When asked for suggestions
he replied That Us practical railroad man, he hsn