St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-10-29
COAL C0MPL ICATI0NS
The Anthracite Companies
Getting Into Rather Deep
Water.
THEY PUT UP PRICES.
And at the Same Time Abol-
iSh All Limitations Upon
Production.
THE POSITION Is LUDlCROUS.
Much Cheaper Coal Certain to
Be the Ultimate Out
come.
THEY PUT UP PRICES
THE POSITION IS LUDlCROUS

cNcHt Ol the week dHectiuG tilt StOCh
market has been connected with the
anthracite coal companies. For some
time past relations between the pro.
dncers have been steadily working to-
wards tang!e. On the one hand, the
depression of business has been check
Ing the demand; on the other, several
producers rave been exceeding their re-
speciive a!lotments of productions. I'm.
der these circumstances, stocks have
steadily accumulated. and buyers have
had the advantage over sellers; the
natural Jesuit of such situation being
cutting of price. until sales have been
made al 70 cents per IN below the cir
GUAR figures On Thursday a meeting
Of The producers and carriers was held
for considering The situation. The
meeting showed considerable division
of opinion and reached some very sin
gular conclusions. 1t was determined
to abolish all limitations upon pr0duc-
ton. each company determining IFS own
output, and to advance prices Is to 20
cents above the present official Scl:rd-
ule. Two things Wall street has not
yet been able to explaln-how. with an
existing ovei-supply. announcement to
Increased Production
should be- given; and how, with an in
creased production and diminished de-
manG, the circular" price should be
advanced. in the face of sellers being
unable to get existing prices and being
willing to accept large reductions. The
logic OF these conclusions eXcites good
deal or merriment, and the settlement
is regarded as only m0mentary. In the
consideration of this question it is i'm
possible to ignore certain existing fac
tors of controlling Importance. The
position of consumers undoubtedly
favorS a low price for coal. The reduced
earnings Of the public at large necessi-
tate a contraction of the use of fuel for
domestic purposes; ami, if prices are to
be maintained, the demand from that
quarter must be expected to be CORE
SpOndingly reduced The same rule
applies 10 industrial consumption with
still greater force. With the great fall
in prices for all kinds OF manufactured
products, there is All unavoidable neceS-
sity for a reduction in the cost of motive
power. i'll which coal constitutes the
principal element. the cheapening of
power, indeed, Is the foremost engi-
neering problem of the day, not only in
our factories, but still more in every
branch of transportation, whether on
land or water. Electricity has not only
done much already towards solving
that problem. but, through the remark:
Al nj 0f 70
do Tar more, that inventor having, it is
conceded. laid Il basis for the early
Production Of Electricity
at One-half its present cost. That dis
covery not only promises cheaper light,
but more economical power than steam.
and also source of heat that may prove
cheaper than coal for either domestic
or industrial uses. These factors place
coal, both anthracite and bituminous.i in
position OF disadvantage TO which it has
never hitherto been exposed. While III
certain sense it must still remain che
chief basis of power and will be tine
chief agent in producing electricity, yet
these changes must inevitably largely
infringe upon its consumption. Thus
Influences are at work which can hardly
fail to compel a more or less permanent
reduction in the price of anthracite. 1t
is true that there has already been some
reduction III its price, the present Off
eial quotations being about TX per
cent below those of 1892. 1t would,
nevertheless, be rather bold assump.
ton to say that this decline is sufficient
to satisfy these new conditions. Proba-
bly, material further concession in
price and some reduction in output will
be found necessary; and that will call
for economics i'll working the mines and
in carriage and probably some curtail-
ment in wages for mining and hand
ling. The companies have thus to face
rather serious situation, which calls
for
Prudence and Conservatism
| and certainly cannot be helped by reck-
less competition in either production or
prices. Their interests will be best
, served by continued cooperation,
coupled with proper estimate of the
difficulties they have 10 contend with.
1t would be wise to meet the necessities
Of industrial consumers literally; for in
that way alone can it be hoped to keep
up the most important part of the ie-
niand to the normal standard. Manu-
| facturers have to contend with unprece.
dentedly low prices, and matters smaller
than the cost of fuel suffice. in many
cases. to prevent them from keeping
their machinery going This condition
in the coal trade indicates the sort of
adjustment to reduced values that is
required in every branch of our indus
tries, and which has not yet been com.
piled with IN many of them. The situa-
ton in the coal stocks has had some-
what depressing effect upon the market
at large, but not to the extent of ma
terially affecting the stocks of other
roads. There Is still
A Firm undertone
to the market. The bears fail to pro-
duce anything beyond fractional lm-
preston by their raids, and the difficult
ty Ill getting stock to cover their sales
discOurages them. Between the reduce
ton in the volume of floating stock and
| the large amount held off the market
| pending financial reconstructiOns, there
! is real and very unusual scarcity of
stock, which greatly strengthens the
position OF holders and gives a steady
bullISh drift to operations. The ship.
ments Of gold to Germany have not
made much impression. This week. the
rates of exchange have discouraged
further exports; and with the large
supply available at London there is the
less inducement for Berlin preferrng
to get the metal from New York. The
Unusual excitement connected with the
canvass for the elections has tendency
to divert attention from Wall street for
the moment; but it can hardly be said
10 affect the tone of business. ConsId.
cradle interest is felt in the prospect as
to currency legislation; hut the state Of
opinion on the question in congress and
IN interior sections is so undeveloped
that it Is not an influential element OH
the business OF the exchage.
HENRY CLEWS.