St. Paul daily globe., 1893-02-18
is It A1C0AL COMBINE.
The Legislative Committee
Has Begun Taking the
Testimony,
And at the First Shot Out of
the Box 1t Grows In
teresting.
1t Seems the Price Is Gen.
trolled Just as in the
Wheat Combine.
An Agent Who Draws a Eat
Salary by just Being
Posted.


price of coal at the producing points
reach out its arms to Minnesota and
control the market here? That is the
problem that the legislature is trying to
solve, and the special committee, en-
powered to produce persons and papers,
took up the Investigation that is calcu
lated to unravel the thing in a session
at the Metropolitan hotel last evening.
Senator Donnelly is-the chairman of the
inQuisition. The fac IT'S brought out were
only elected from the two witnesses
that testified upon the most direct or
imperious questioning. The evidence,
however, did lead the committee to the
idea that the influence of the producer
is the ruling spirit here. 1t developed
that the wholesale dealer in st. Paul
only acts as the authorized agent of the
Eastern owner.
E. n. Saunders, of the Northwestern
Fuel company, was the first witness
called. He explained that coal bureau
is conducted III ST. Paul for the general
information of the dealers, both whole
sale and retail. He avefred that this
bureau gives absolutely no instructions
as TO the prices that shall be charged
nor as to the conduct of the business.
1t simply keeps the dealers conversant
with the prices and conditions of the
business in all sections Of the country,
and then the dealers NAV act in accord
ance upon their own Judgment He said
that as to bitumlnous coal there are as
many different prices as there are kinds.
There is deal of competition and the
dealers had become
Subscribers to the Bureau
with view to making money and not
losing as they did last year. The ruling
prices last year were much lower than
the present season, and this is also be-
cause of the desire to make a little
money. In twenty-five years. expert
ence the witness had neve: known the
prices to be rigidly maintained except
in cases like the present-a cold winter
and limited supply.
The company the witness represented
was originally organized from the retail
trade. 1t was not conceived in the
cantiIe houses are. When the anthra-
cite is once loaded upon the cars at Du
luth it becomes the property Of the
Northwestern Fuel company. The
sharp buyer who knows how to work ii
buys coal cheaper than those who do
not attempt the plan or do not know
how to do it, The witness estimate Of
the cost of anthracite coal OH cars at the
mines is from 1925 to s2.15 per ton. He
thought that the labor costs within 25
cents ton. Coal is worth % to
so cents in the mine. This is
paid as royalty to the land owner.
The producers nave acuStom OF meeting
once a month ana consult concerning
prices. The aim is to get higher prices
in the winter than in the spring and
summer because of the interest on the
money invested The great bulk of coal
for this market is brought by lake dur
ing warm months and stored. There
are three grades of anthracite coal, but
the witness, in making the statement
said that no dealers will cOncede that
thew do not handle the best grade. The
prices last year i'll st. Paul were much
lower than this, but the witness main
tdlllSo LllctC LHSS nSiS
Here rs the Man.
John }. Rhodes was the next witness.
He belonged TO no corporation. He
furnished coal to subscribers only, and.
he fixes prices upon the general market
prices, the freight rates and current
conditions. In the event dispute arises
concenRing the infraction Of any rule of
conducting the business, the witness
iof ofnrnctin
Nav he organized a coal bureau for the
information of dealers. He keeps all his
subscribers posted upon conditions by
letter or circular. He has seven sub
scribers, while there are eight or nine
wholesale dealers in the state. Ii he
found that dealers were selling coal at
a loss, he advised them with view to
helping them out. He would tell them
they were foolish Again, he keeps
other dealers posted i'll the event he
discovers that any other dealer is under
selling them.
THAT is avery interesting function. "
observed Representative Walsh, look
ing significantly toward Senator Dou-
nelly.
Yes; and very surprising one,"
returned the Sage. sd
Mr.. Rhodes then explained that his
methods are to keep thoroughly posted
upon ether markets, and III case rise
is made anywhere. he StraightWay Doti-
fies his subscribers. The nominal
price of anthracite coal on the docks is
fixed by the owners in the East. The
nominal prices at retail are established
through consulting with each
other. He recommends the price
that the coal should be sold
for. Coal costs delivered in st. Paul
$3.50. The switching charges are about
So car in the yards. Very few retail
ers have coal yard. They get it from
the wholesalers yard. Then the cost
for unloading is 25 cents ton. Then it