The San Francisco call., 1895-07-16
THE BIG COAL COMBINE,
Dealers Given Five DAYS More
of Grace-Then Comes
the Cinch.
FOREIGN COAL BEING USED
State Institutions Burn Fuel From
Across the Seas Instead Of the
Home Product.

combination to retail short tons at top
prices will not be s'cinched" until July 90.
The word went forth on July L that on and
after July Is every dealer who had not
joined the association would be charged
an initiation fee of $500, whereas prior to
July Is any one who wanted to join could
get in for 81. 1t was supposed that this
announcement would cause all the hesi.
tating dealers to get into line without
much delay, but contrary to expectations
fifteen or twenty of them declined to go
under the yoke. The extension of five
days time was granted to enable the re-
sisting retailers to reflect awhile longer.
The combine is anxious that every dealer
selling coal in San Francisco shall sell
only 1000 pounds for ton and sell at a
figure fixed by the association.
Article [ of the constitution of the Coal
dealers Association thus defines the pur-
pose of the organization:
1t shall have for its object the furnish
ing of information to the members as to
sales of coal made by wholesale dealers to
the retail dealers and by retail dealers to
consumers, and also the names of any
dealers who have been guilty of violating
any of the rates or rules made from time to
time by this organization, and furnishing
as complete a list as possible of delinquent
consumers, and such other matters as may
be decided upon"
The following agreement between whole
sale dealers is made part and parcel of Sec
tion of the bylaws of the association:
'We, the undersigned, wholesale dealers
in coal hereby agree that on and after this
date, April l, 1895 we will agree upon the
following plan: That Immediately upon
signature of the dealers of any one of the
following classes-first, foreign coal; Sec
ond, Wyoming, Utah or other railroad
freighted coal third, Oregon coal-the
wholesale dealers of that class will issue a
notice to the trade with the jobbing and
retail prices noted thereon, which shall be
binding on all wholesale and retail dealers
concerned.
''On proof of any cut in such prices, any
dealer making such cut will be refused
coal.
Amy dealer furnishing coal to dealer
who has been cut off will himself be cut
off,
sacks or 1000 pounds.
"a ton of coal in bulk shall be 2240
pounds dumped: If handled after dump
ing an additional charge of so cents per ton
must be made.
"This agreement to be in effect on each
kind of coal whenever all the wholesale
dealers handling coal of the same general
nature shall have signed this agreement,
thus permitting one agent of coal to sign,
but not to be bound until all the agents
for that particular coal shall have signed"
This agreement, which may be justly
called a conspiracy against consumers, is
contrary to the letter and spirit of recent
legislation against trusts, and could hardly
stand day In court.
The detective system recognized by the
association is thus given in section Ii of
the bylaws:
1.-The board of directors may employ de-
tectives to purchase coal at retail through
any citizen, to inspect such COAL pay the
dealer from whom it is bought out of the
funds of the association, give the coal, if
they see fit, to the person through whom it
is bought or have it taken to some place to
be disposed of for the benefit of the associ-
alton. Any dealer giving more or less
than 100 pounds to l sack, 500 pounds to
sacks or quarter ton, 1000 pounds TO half
ton (short), 1000 pounds to l ton (short),
2240 pounds to | ton Qong), will be sus-
pended or expelled, according to the by
laws of the association
Yesterday was the day appointed by the
cont bine to close the cinch, to raise the
cost of membership to $500 and to advance
the price of coal so cents ton TO all deal
ers who had not signed the agreement.
But the article exposing the secrets of the
scheme published in THE CALL of July II
alarmed the cnlef prOmulgatOrS OF the Job
and caused them to deliberate. War is
certainly imminent, but its declaration
will not come before July 20.
1t is a fact, which has been known long
time to prominent coal-dealers, that City
and State institutions are supplied with
foreign Goals contrary to the law, which
expressly provides that preference shall be
given to the American product. A promi-
nent coal-dealer said yesterday: "This is
not only the law of California, but it is a
law of the United States, and it is being
violated every day by public officers and
boards of this City and State. The law
contemplates, said he, "that coal from
American mines employing American la
Dor shall have the, preference and the law
should be enforced"
Yesterday attorneys were consulted by
dealers who refused to join the combine.
1t is probable that one of the first acts of
retaliation against the combine will be to
put stop to the use of foreign coal in
public institutions. The dealers in the
foreign coal are known to be the very lead
ers in the conspiracy to cinch consumers,
and, since they are supplying public insti-
tutions, while preparing to plunder the
people, 1t has been decided to strike one
of their chief sources of profit at the outset.