The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1894-02-16
People Rejoice Over Pros
poets of Declining Prices.
A TRADE WAR Is W ANFRD
sciaI HERALp correspondence

Special HERALp correspondence
PHILADELPHIA, Feb. 15-The prospect of
q decline in the price of anthracite coal is
hailed with delight by the thousands in this
city who are feeling the severe pinch Of the
hard times. The high price extorted by the
combinations of the producing companies
and the retail dealers has been felt to be on
erous by the consuming public for years, but
it becomes more irkslme when wages, in
comes and investment profits shrink as they
have done in the last year; and especially is
the oppression felt when the cost of the
"black diamonds is compared with the great
fall which has taken place in AL other COM
modities The rigor with which tho so
called "coal barons' have wruug big profits
from the public has excited a widespfe cad
feeling of resentment, and popular sentiment
is reaching point where almost any means
or compelling . reducti IN in the charges on
this article of universal nee ssty would be
defended as iuslifabe by the suffering CON
sumer.
There is apparently hope that inroads may
soon be made into the close combination
=.
The defeat of the Philadelphia and Reading
combine in the courts of New jersey in 1891
has set the seal of legislative disapprOval upon
the monopoly, and the coal companies are un-
able to control the anthracite e output by means
Of leases or consultations The control of the
| trade is sought TO be held by agreements
| among gentlemen" but there are signs that
| the strands of this new arrangement are
| eaking The larger coal companies com
| re hgi touf a.,d
| the New York Ontario and Western, and the
New York, Susquehanna and Western rail
| roads are reported to be pushing their coal
| traffic at the expense of their older cOmpeti-
| tors i'be comparatively mild winter weather
has been great aid 10 the suffering consumer
| IL has checked to an enormous extent the
consumption of coal and has led to accumu-
lation of stocks in the hands of middlemen
| and in cars on the tracks of the transporta.
tion lines. People buy coal only for immedi
| ate necessity, and fortunately the storage
capacity for the article soon becomes ex
haustod
A lively war in the coal trade would be a
consummaton devoutly wished for by the
millions who must rely upon anthracite for
the means Of warming their homes and
conducting their households.
| Financial men have long wondered at the
ability Of the coal managers to keep the cost
Of coal when every other commodity was
tending downward under the stress of the ex
tensve business depression. Almost every
commodity has fallen sharply in the last year
and there is no prospect of an immediate i'm
proVement IN the face OF this general shrink.
| age in values the price of coal has stubbOrnly
been maintained, to the amazement of all
| observers. Specious arguments are advanced
| to defend the course OF the coal producers and
dealers. But the fact cannot he disguised
that coal must have become more reasonable
in price, if it had not been for the practical
| combination of the producing companies re.
straint of competition.
For years producers independent Of the
great corporations were cOmpell d to pay
such exOrbitant charges OF freight rates on
the railroads that control the bu k of the
| coal output that they could not enter the
| field Of competition with free hands Con.
cessions have been forced to some extent
! fr m the railroads, so that the independent
producers are becoming more important
factor in the distribution of the supply. But
the power of the big companies is still so
great that production is curtailed and wages
of miners are cut of through 'shutdowns, ("
| in order TO keep an excessive supply from re-
ducing values in the open market. Even a
| corporation ike the Philadelphia and Read
ing prefers to attempt an escape from bank
ruptcy by compelling creditors and owners
to make sacrifices instead OF boldly selling its
great product at fair price aud adding TO its
revenues enormously. There s no considera.
tion for the hosts OF unemployed persons for
those who have had income or wages reduced
and only the blessing of an open winter
works as an ally to bring coal down TO q psr
with other commodities that have fallen in
va ues.
The presidents Of the big coal transporting
companies which control tho mining co pora
tions in their respective anthracite districts
IN. I'm, "a
of the price Of coal. The general assertion is
made in response to inquiries, that coal is not
"high." The views held by the coal mag
mates however, are generally in accord with
the statement made by q high executive
officer Of the Delaware and hudson Canal
Company, who said the other day "lhe price
Of coal is not really high and there is no rea-
son why it should be affected by the decline
in other commodities, which are governed by
entirely different conditions 1t must be re-
membered that the cost Of coal mining in-
creases as the depth becomes greater, and there
must be a sinking fund allowance for the
depreciation in the value Of the property.
which goes with the taking out of every ton
of coal The wages of labor in the mining
regions have remained without change for
some years. 1t would be impossible To buy
coal lands in the 7 Pennsylvania regions to day
and make any profit in mining The old
companies which went into the field first are
making good dividends, but that IL because
they acquired cheap property, and they ought
to be paid for ventures which, like all new
enterprises, give no absolute assurance Of sue.
cess at the start But il is not fair 10 take
the dividends of the two Delaware companies
as a criterion Of profits in the business Has
the Erie made great success Of the coal bust.
ness 10 is in the hands Of receivers. So is
that great coal corporation, the Philadelphia
and Reading.
The earnings of the old companies" con
tinued the speaker, "are the result of their
exceptional good fortune Even lO@12 per
cent. returns won't leave the stockholders