The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-02-02
THE READING COAL COMBINE
IMPORT OF III SPECIAL COMMITTEE
or mi STATE KNA TIE.

A M Aeeomp .n,,. the Report Providing
Sr Coal Carriers and Coal Dealers
Licenses. One Fixine the Price OF Traus-
portatiou aud the Other tho Maximur-
Price. for the vsrfous Grades OF Coal
The I,cens.. 10 be Iseued by the Railroad
commissioners, Who May Also Revoke
Them for Causes Prescribed In tho Act.
A1rAsY. Fob. 1.-Souator Mcmahon. Chair
man Of the special senate Committee which
was last year appointed TO Inquire as to
whether n ccnhipation OF corporations or in
d;-iluals ksd becn formed with n view to adj
vopcirs or controlling the price o, coal. and to
rorcrt such remedial legislation as. in it's
opinlon. would DO for the best interests OF the
nubiic. submitted his report to the Senate to-
day. Tho testimony taken before the COM
ni.ics vas gathered from oil branches OF the
coal business. including production. trans
portation. io5b!ar. who!esaiing. retailing. and
trade reporting. and presents tho evidence OF
representative men In all these departments,
A we'll rs that @. thosc who are directly con-
ecrncd in tho combination that gave rise to
the inquiry.
The report reviews the circumstance lead
ing Up TO the Rcading Railroad combination.
describes tho operations Of tho roads which
were in the combine. and says that the amount
., coal controlled by these several companies
aggregates about 10 yer cent. o: the entire
tonnage annually brought to t!dewater. Tho
coal regions covered by this combination OF
transportation and production companies are
the only source OF supply Of anthracite coal
for the state Of New York. and practically that
OF the country. The roads thus far involved.
directly or indirectly. in the combination. are
mainly foreign corporations. and carry on
their operations without the State OF New
York. with the exception Of the Delaware.
L%ackawanna and Western Railroad Company.
tho Lehigh Valley Railroad Company. the Cen
trail Railroad Of New Jersey. and the Philadel-
phis. Reading and New England Railroad
Company. The committee reviews briefly the
testimony taken before It, and comes to these
conclusions:
That the consolidation Of railroad and ~ooal.pro-
duciug companies, herein described and known As The
Reading combination. has created . substantial mo
nopoiy Of anthracite coal in the management OF the
Philadelphia and Reading Railroad Company.
That tho roads involved arc substantially parallel
and the mines controlled BY them are the source OF the
largest supply and were competitors in the coal buss
ness until the combin alton was formed.
That the most natural and obvious benefit to b do
rived BY them from consolidation 10 increase in the
price Of coal.
That the price of coal may. In the interest Of the com.
bination and at its pleasure. be advanced to An unres-
sonabls and ex,ortionate rate.
That since the COMBINATION was FORMED, material
advances In the price OF coal have been made and
others are threatened.
That these advances have originated In the Wholesale
branch Of the business and are not due to any natural
nuctuation in the value of the commodity. but are the
direct result of the policy OF tho Reading combination
and tho partial destruction by It Of competition in the
business OF coal production and transportation.
That such combinations are opposed to tho spirit Of
the law 10 forcibly declared In decisions of the highest
courts of this and other States. As well A. Of England,
-hosa ipssttutiona rntCht Ia thnupht tn aucouynoa suah
conditions far more than our own.
The committee reafirm the view expressed
In their former reports. that the combination
herein described IL contrary to public policy
and dangerous to the interests Of the State
and the welfare OF its people. The report adds:
While In the opinion of your committed as advised
by counsel the evil In the PRESENT case may be 70.
strained, At least in part. under existing laws of this
State. By proceedings either to set inside the leases. or.
II necessary. to annul the charters Of those corpora
tions OF this State which arc involved in the combine
zion: yet By reason of the fact that tho che: partiest to
the combination arc foreign corporations aud without
tho Jurisdiction o. our courts, no adequate remedy
sgains; this or similar mischievouS combinations can
b. hal. except uude: Federal, law ana through the
courts or tn. United states 1c this end 1t Is believed
Law '% y ne s'SSt a,.ss s ! ssj Ia.: y : 5uis s. ssscs ana ma
this a.p si.Es. Il III I. res rsso fs.iH saaIP . a 'ss S. . q, ses P n IssS q.
s ssps!s y KY y. s.. is;% q f ssps1si sss;: : ;sS y g: ss We;
e sSn.f Of . .as Prom Tums shs,sess q :. t ths pr.: .na p MSsid lie Tts
IN .ns sxssnsiS n Of tas ! power y; ,b and authority nI yS Ss.,ed in
cominission should have sneh turisdieaon. as would
g II. p n &C S 81 sSsi ss ans s aoSid t s'e eau.fiy r Il 's 70 e:
producers and to the public.
Tho followinE Is ap abstract Of the bill rec
commended by the committee:
On aad after Sept. l. 1898. It shall be uniawfuli
ua r,p.:nt tS ,t .ny Dst. Sn,h nSe sa sonf which 4 So !, , ss,5,ss;
for consumption In the state on n railroad. tho naviga
seccna-For any person no. having a"coai dealers
coal ssssH snIeh 5 Is shs s.ass AMI intended az fcr san.a@p:
!,Oa 'n .asa1 ., Ihs llSer I,s:s seal be sn snSwn ea asipsss,E.iy
license" eAt''"'' ~ ~
Tor c%on.umpt,on in the state. and 1; shall prescribe the
III licensee 70 demand or receive .art:anspOrting the
"ooaiisaier license snail authorize the owner
s sasT %h TO sn Is ,s ,h /. s nat. eu: ann ia e Z .s!ti, tsr ' ssa.a%n.
ton therein. according TO said license, and shall pre-
issss:. sls 20 % a.'asaa .! |' I::s;! 4: 3! ~. sa e s !s:.s, 81 s:.s &:
s 3. men me Ssp place. sss' ~Ssrs q the ." licenses er,ss' may q Sf,i rss.ns: the
business authorized BY, II. license. ana tnat the
70 ! p=Hrsss..: hereof wi!heat! ea.fns Tor such q:
hvsry, AZ me plses ~ me state where said coal may 10
d E {: ss s::ss5is III, ;:;s s,aa G n: S ss az .; rf ass,ss. sss Ss,::
mi,nonsis, aud shall BIO PLACED eouspicuouAly in Ills
..oh.t r., and sG" went OF 81 t sns ss4.d e Il. Hs slsn.ier Ts", .e.i
be entitled to the same rights a. the former holder
ce Hn"siiaiie@ ns t Ss Ether Of II he t fSlo ""nrs causes 3. ss;'f''a
frst,for Tue cOh!itiion OF the !!censee OF an offence
prescribed in this act.
second-for ths iic.nsee refusing or Intentionally
emitting to keep such license publicly and conspicu.
oisiy posted IN the orices and public places WHEN no
transh~ts the business authorized by his lie enSe,
licehste "hose accuse may be revoked shall there
Aysar after such rerOcatun,
The Board ~ railroad Commissioner NAV modify
the terms at sCc., Licenses,
his niaximu,a pr.ce u coz! Is 10 be nSed by the state
Railroad Commission. basri on its lny.stiea ions Of
the matters aztec ing such prices. whIclI shat. be so All.
Justeu as nat to caniiIcI with aud "a as to .lord unlv
u reasonable conpen sation fof such goal.
Tho ruai carriers license lee 10 nxed Ut So. and that
OF the coal dealers ~ So
The Board OF Railroad Commissioners SHAH NEE, at
least every three inInths when prices Of coal ~. nNei
by It may be modified. The determinations NJ tne
hoard may be reviewed by wrt ~ c,rtIGrart. Tn
hoard. IN the pursuit OF ITS investigntipus. Is .inpnw.
cred 10 examine the books VI carrying compani.s.
wholesale or retail dealers.
Disirct Attorneys OF the several counties are au.
lioriz 1 aud directed. on behalf OF the people of tho
Stat. 10 attend ani to participate IN. according to the
rue. or the Board q Railroad Commissioners. Tie IN.
y-siiyrtIous Of said Board. held ~ their respective
c".niirs 10 proseclte violations OF aud offences against
THIS act. and To review INSTRUMENTATION Ofthe hoard
concerning tho provisions Of license. delivered to H.
cch"e, in their respective counties, ana which deter
h t4IB- NI-rI nI 1-Anl NO ia nRpn FlA hRA Win I'M