The sun., 1893-04-20
ASKED TO PROSECUTE.
COAL COMBINE COMMITTEES
MAKE THEIR REPORTS.

The Facts Developed by the Inves-
tigation Are set Forth--A
Strong Arralgnment OF
the Wholesale Coal
Dealers.
Mr.. Walsh, of the coal combine in
eeStigating committee, presented the FOL
lowing report in the house:
To the Senate and House of Representa-,
tiveS: Your joint committee, appointed
pursuant to the concurrent resolution adopt
ed by the senate and house OF representa-
tiyes on the Goth day of January, A. ID,
1898, to inquire into the present unusually
and unnaturally high price of coal and as
to whether an unlawful combination eN-
lists for the purpose of controlling the same,
| and to report such remedial legislation as,
| In its opinion, would be for the best in
terests of the public, respectfully submits
| the following report:
Your committee met, pursuant to the
resolution appointing it, on the 10th day
| of February, A. D. 1898, at the capitol,
| and organized by electing Hon. lgnatlus
and it has held numerous sittings and hear
| ings from time to time up to this date
! The testimony taken was reported In fuit
| and is herewith submitted.
1t was gathered from all branches or
| the coal business, as far as was in the
| power of your committee with the limited
portation, jobbing, wholesaling and retail
| Ing, and presents the evidence of repre-
| sentative men in all departments OF said
| business, and of a large number of those
| who are directly concerned In the combina-
! ton that your committee find does exist
and which gave rise to this inquiry. 1t
shows the following state OF facts' VIZ:
Practically the entire supply Of anthra-
! rite coal consumed in this state comes TO
hs via what is known as the lake 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
! bf Duluth in this state, or West superior,
tn 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 following named corporations have
! docks and so 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 the en-
| tire supply of anthracite coal marketed In
| this state, viz.
The Northwestern Fuel company the Pio-
aeer Fuel company, the Ohio Coal company,
the ST. Paul & Western Coal company. the
| Philadelphia & Reading Coal and Iron COM
pany the Lehigh Valley Coal company and
the Delaware, Lackawanna Il western Rail
| toad company.
| All of these corporations claim to be only
| agents for the Eastern owners of the an
| thracite coal, and to be compensated for
their services by a percentage of the money
committee believe that this is a mere
scheme or subterfuge resorted to by these
| corporations, acting in cOlluSion with the
| nine owners in the East, to meet and avoid,
| tf possible, certain phases of this question,
| Or possibly to avert payment of personal
! tax upon the commodity while 1t remains in
their hands with the state; the fact remains,
| however, and it is indtsputable, that they
exercise all the rights Of an owner over it,
and your committee are of the opinion, after
| carefully considering the matter, that they
10 in fact own it after it is consigned and
! delivered to them, Notwithstanding their
claim to the contrary. Your committee are
| satisfied that the managing agents of all
! pf the companies named meet yearly, with
others like Interested in New York city In
b sort of common convention, from which
| bOint the DEGREES of the great national coal
| combine are issued. These facts were freely
conceded by the principal managers Of these
| companies 10 your committee.
Starting from this home, or seat, of the
| great owners of coal properties, the SER
| pentine coils of this colossal and hydra
| headed combination embrace the entire coal
| consuming portion of these United States,
and the black cloud of disaster and extor-
ton spreads oyer the entire country by the
| vast ramificatiols OF this conspiracy, bring
| try and every fireside in cur land, and is
indeed one of the gravest dangers that now
threaten the institutions of our country.
COMMITTEES @ have nav been able able to to learn M NO Vdt ef-
fectLal combination existed between the
shippers or wholesalers in this Northwest
ern country and the trade was fairly dt-
Vided between them and none controlled an
excessive share of the business; but each
year since said last named date, the compa-
MES 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 eHectually pre-
vent competition have hmited and arbitrar-
lily fixed the amount Of coal that should be
brought to the head of the lakes; and SO
thoroughly and completely has this work
| been accomplished that on the last days OF
MaFch and April Of each year there scarcely
remains ton OF coal upon the docks al
Duluth OF tbs amount brought there during
the past season.
The uniform price at wholesale for anth.
racite coal land our inquiry has been almost
past season has been $6. 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 jp the East; but yOul
committee doubts this, bst be this as II
| may, in any event IL is much too high, anG
from the evidence at hand we have con
cEuded tla* the price for this coal on board
the cars at Duluth or West Superior SHOULD
never exceed IS per top; especially in view
from Buffalo or Cleveland to West superio1
! pr DHlHth, by way OF the lakes, averaged
iHss than 30 cents per ton during the pas
season.; thus demonstrating that there
should be very little difference between tn,
price in Buffalo and that in DMgth.
Where Responsibility Rests.
| Ile northwestern = u6t EUtupdHy, tue tdER
est and strongest of ot1r local corporations
is, in the opinion of your committee, in ;
large measure responsible for Bringing .abou
the combination that now. exists, and 81
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 thu
price of coal to aay point short OF the limi
! TO which the consumer might go before
being forced to sp6stutf f sher kinds
among the shippers or wholesalers is EeI
among the retailers, and works fully Al
great hardship on them as 1t does upo1
| faA offices, either iH Duluth or West Su
' Saerior and in St. Paul a4d Minneapolis
"a S@t attempt to conceal, to deas diReetl
do tie consumer and therefore entiFef
With e GeteileF The or mddemsn
save to Saaintatp the retailers in thei
now go to die unfortunate and helples
business an %nsc9Hs q this disposito
on the part Of tn, 14e commodity 3e whicl
troll the supply, of ~R easily coercea 3at
the most humiiiating 81. %9lesaler at who's
rageous schemes of the x Ehe people a
mercy, not only he is, br.
lEWell. then larg
The retail price of coal in the nr5s,, rs
cities Of the state, and their sun, cbnfsr
tricts, is determined monthly at ~ nisI Of ths
4 shippers or wholesalers held at the Guy "a
St Paul at the office of the MINI. es4iS bu
| reau oi Coal STATISTICS, a spying In. ant ot
| maintained by an arbitrary assessm Snt VI
| $25 on each retailer, and the remal. "dei ,ei
| of the price of maintaining which with q
paraphernalia of detectives and bulldozers,
| Is borne equally by the shippers or whole.
| salers. John j. Rhodes, who is now under
arrest for perjury in connection with this
| investigation is the manager Of rhis bureau,
and Is paid salary of $1,000 year.
This present bureau of statistics appears
| to have been organized on the 1gt of May,
1892, and is the successor of the Minnesota
| Anthracite Coal association, and the busi-
| ness of the so-called bureau is to take care
i that the prices agreed upon by the whole
| sllers at their monthly conferences are
rlgldly maintained by the retailers, and to
see that penalty is visited upon any re-
taller who is found to have departed from
the schedule or fixed price, said penalty be-
| ing to cut off his supply of coal until the
/ offense is condoned or manager Rhodes is
sues his pardon
As evidence of the mandatory character of
the orders issued by Mr.. Rhodes, we in
| corporate letter addressed to the Lehigii
Coal d Iron company, Minneapolis, on the
4 0ptnhnr o- Foil