Freeland tribune. (Freeland, Pa.) 1888-1921, 1896-12-28
COMBINE IS A FAILURE.
COAL BARoNS LOSE MONEY IN THE
ANTHRACITE TRUST.
Notwithstanding the Restristion of the
Output and the Increased Price OF the
Product, Morsan's Clique HAS Less
Profits and Loses . Fine Market.

From present appearances j. P. Nor
gan's coal combine, formed nearly q
year ago for the purpose of raising the
price of coal and restricting the output
will not last beyond the time specified In
the agreement-January l, 1897, accord
ing to the New York Journal Already
there are chickering's and murmurings
among the barons interested, and
through it all there looms up to gladden.
the sight OF the poor, who have been
| ground down by the coal combine. the
fact that it has virtually disrupted it.
self; that. by the methods adopted, the
| coal combine has been a boomerang,
which has come back to smte the men
who formed it on February last.
Last January the coal roads and
| carriers OF anthracite coal entered into
an agreement, the terms OF which have
never been definitely ascertained. but
which had for an object the boosting OF
the price OF coal and the limiting OF the
| production. The combine has succeed
ed In raising the price of coal about a
ton up to this time, but paradoxical as 1t
may seem, though the barons get a
dollar a ton more for their coal, they
have been losing money.
This is shown by the statements Of
tho net earnings OF the roads most
prominently interested, from January
to October OF this year. The New Jer-
soy Central earned, net, in the time
mentioned, $3,S64, ,992, decrease of
s3s3, $40 compared with the correspond
ing period last year. The Pennsylvania
lines east Of Pittsburg show a net de-
crease OF S1,445, 100, a total on this road
of s3,372, 900. The Philadelphia and
Reading, which under Morgan's reorga
nization and with new capital behind it.
was thought to be q sure honey-maker
this year, or, at least, a road that would
show a substantial increase in net earn
ings, comes up to October 1 with a net
decrease in earnings OF $544,474. The
Delaware and Hudson breaks record.
For the first time in seven years this
road has not earned the regular z per
cent dividend. A dividend may be de-
clared, but it will be paid out OF the sur
plus and not from the earnings this
year. These are the ruling roads OF the
combine. The small fry have not Jared
any better.
1t was simply case OF smart man
against smart man in the coal combine
bnisness, and tho barons, were outwitted.
The poor people, the dwellsrs In cities
and In towns, who buy their. coal by the
ton or by the bushel or by the pail-pay-
ing more for 1t in proportion TO the
smsllness OF the purchase--have paid
the profits OF the coal com bine this year.
On the other hand, the big manufac-
turers, men who burn more coal in an
hour than 100 average families could get
away with In a week, have rolled up the
losses for the coal barons, because they
have bought no more coal than they alb
solutely needed. The losses smother
the profit made from the poor, from
which tho poor may take what satisfac-
tion they can gather.
The only distressing feature to Mr..
Morgan is the absence of profits, and
this feature Is duo to the methods OF the
combine. Mr. Morgan has found that
wide margin OF difference exists between
running gold corner and running
coal corner.
When the agreement was In working
operations by raising the price OF coal
all along the line, and refusing to make
long time contracts with heavy con-
sumers. The large consumers, the men
who run factories and saw mills and the
like, are generally rich men, and they
set about to take care OF themselves
without the assistance of the coal com
bine. But the poor men who burn coal
had to stand tho raise.
The rich men cast about for some
cheaper method OF making steam or for
some power substitute to do away with
coal Gas and oil were called upon and
they seem to have solved the difficulty.
Many great manufacturing institutions
have built large gas plants in connec-
tlon with their manufactures, and are
using coal and oil gas for fuel-in some
instances using gas direct, for the pur-
pose of driving engines and machinery.
Other large concerns use oil entirely for
generating steam.
Smalle. concerns. unable to afford the
expense OF private gas plants, have
bought small gas engines, which are
used to propel dynamos and thus gene
rate great electrical power This has
been found to be much cheaper than
the old coal boilers, and within the past
few months hundreds OF manufacturers
have convinced themselves of the fact
by experience.
Added to these losses OF revenue by
the combine there is one other, and it is
not unimportant. Thousands Of New
York families live in flats that are not
steam heated. Heretofore they have
used coal in their stoves. The raise in
the price Of coal last winter prompted
| them to look out for sope other method