The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-04-19
THE COAL COMBINE
REPORT OF THE COMMITTEE.
The Coal Combine Investigating
Committee Has Presented
Its Findings in Full ais
Follows.

Your joint committee appointed pur-
Buant to the concurrent resolution adopt
ed by the senate and house of represen-
tatives on the Goth day OF January, A. d.
1893, to inquire into the present I'M
usually and unnaturally high price W
coal and as to whether an unlawful
combination exists for the purpose of
controlling the same, and to report such
remedial legislation as, in its opinion,
would be for the best interests of the
public respectfully submits the follow.
ing report:
Your committee met. pursuant to the
resolution appointing it. on the 10th
day of February, A. D.. 1898, at the cap
itOl, and organized by electing Hon.
1gnatius Donnelly chairman of the Joint
COMMITTEES, and it has held numerous
sittings and hearings from time to time
UP to this date. The testimony taken
was reported in full, and is herewith
submitted.
1t was gathered from all branches of
the coal business, as far rs was in the
power of your committee with the linn
TIED means at its disposal, and includes
transportation, jobbing, wholesaling and
retailing, and presents the evidence of
representative men in all departments
OF said business and of a large lumber
of those who are directly concerned in
the combination that your committee
finds does exist and which gave rise to
this inquiry.
1t shows the following state of facts,
viz:
Practically the entire supply of an
thracite coal consumed in this state
comes to us via what is known as the
lakes route; that is, it is forwarded by
rail from the mines in Pennsylvania to
either Buffalo or Cleveland, and thence
by water to the city of Duluth in this
state, or West Superior in the state of
wisconsin, at which points the coal is
stored In large quantities in the spring
and early summer months for sale and
distribution during the subsequent
fall and winter.
The Corporations Designated.
The following-named corporations
have docks and 80 store and deal in coal
at wholesale at these points. and also
have yards for wholesaling and retailing
at st. Paul and Minneapolis, and control
she entire supply OF anthracite coal mar
keted in this state, viz:
The Northwestern Fuel company. the
Pioneer Fuel company. the Ohio Coal
company, the st. Paul & Western Coal
company, the Philadelphia & Reading
Coal and Iron company, the Lehigh
Valley Coal company and the Delaware,
Lackawanna q Western Railroad COM
panv.
All Of these corporations claim to be
only agents for the Eastern owners of
the anthracite coal, and to be compen-
stated for their services by percentage
Jf the money received on the sales they
make; but your committee believes that
Wis is mere scheme or subterfuge re-
eorted to by these corporations, acting
IL collision with the mine owners in
the East, TO meet and avoid. if possible,
certain phases of this question, or
possibly to avert payment of personal
tax upon the commodity %ilIie it re-
mains in their hands with the state;
The fact remains, however, and it
IS indisputable, that they exercise
all the rights of an owner over
u, and your committee is of the Opin-
ION, after carefully considering the mat
ter, that they do in fact own it after it is
consigned and delivered to them, not
wlthstanding their claim to the con-
trary. Your committee is satisfied
that the managing agents of all of the
companies named meet yearly. with
others like interested, in New York city
in sort of common convention, from
which point the DEGREES of the great
national coal combine are issued. These
Facts were freely conceded by the prin-
clple managers OF these companies to
your committee.
Starting from this home, or seat, of the
great owners of coal properties, the SER
pehtine coils OF rhis colossal and
HYDRA Headed Combination
embrace the entire coal-cOnsuming Dor
ton of these United States. and the
black cloud of disaster and extOrtion
spreads over the entire country by the
vast ramifications of this conspiracy,
bringing distress to every manufacture
ing industry and every Preside in our
land. and is, indeed, one of the graveSt
dangers that now threatens the institu-
lions OF our country.
Prior to the year 1887, as far as your
committee has been able to learn, no
effectual combination existed between
the shippers or wholesalers in this
Northwestern country, and the trade
was fairly divided between them and
none controlled an excessive share OF
the business; but each year since said
last-named date the companies that
then did business in this section, and
the few that have since come into this
territory, have combined, not only to fix
the price at which anthracite coal should
be sold within this state at wholesale,
but at retail as well; and to more effect
ually prevent competition. have limited
and arbitrarily fixed the amount of coal
that should be brought to the head of
the lakes; and so thoroughly and COM
pletely has this work been accomplished
that on the last days of March and April
of each year there scarcely remains a
ton of coal upon the docks of Duluth OF
the amount brought there during the
past season.
The uniform price at wholesale for
anthracite coal (and our inquiry has
been almost entirely confined to this
quality during the past season has
been S.. 10 per ton on board the cars at
Duluth and West Superior. This price
is fixed by common agreement; the
local wholesalers before named insist
that it is thus determined and fixed by
the owners of the property in the East;
but your committee doubts this. But
event es this is as it may may , IN any
from the evidence at hand we have con-
cluded that the price of this coal on
board the cars at Duluth or West SUI
perior should never exceed IS per ton;
especially in view of the fact that the
cost of transportation from Buffalo or
Cleveland to West Superior or Duluth
via the lakes averaged less than 80 cents
per ton during the past season. thus
demonstrating that there should be very
little difference between the price in
Buffalo and that in Duluth.
Company That IL Responsible.
The Northwestern Fuel company, the
largest and strongest of our local cor
porations, is, in the opinion of your
committee, in large measure respon-
sible for bringing about the combina-
ton that now exists, and so perfect and
close has this Northwestern branch Of
this great interstate conspiracy become
that there would be no substantial
difficulty in the way of its advancing
the price of coal to any point short Of
the limit to which the consumer might go
before being forced to substitute other
kinds of fuel. The baletul results of
the combination among the shippers or
wholesalers is felt among the retailers,
md yRorlrs fully Graat 2 hardshin