The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-02-06

vision was arbitrary and no basis at all
was used. However, the percentages
are awarded now ard will have to be
lived up To. The only way the Reading
and Lehigh Valley can get even for the
reductions they have been forced to
accept is for them to cut down their
output of rice and culm. These refuse
ccals bring about 80 cents a ton at tide
water. and IL costs all of that to get
them there and pay the costs of selling
Bv leaving these sizes on the dirt banks
In the region these companies will be
able to make greater output OF the
larger sizes which pay profit
-
Holland" in his New York letter to
the Philadelphia Press. says that Pier
pont Morgan. after he had looked into
the condition of the Reading Railroad
company. and had determined upon the
best method of reorganization in SYM
pathy with the Olcott party. made up
his mind that there must be a regula-
tion of the coal traffic before there
could be any hope for profitable agree
ment. He found that In order to bring
the various anthracite railroad presi-
dents into agreement, 1t would be ne
cossary to have one controlling infiu-
ence over the market at this end of the
line. Therefore. he with Maxwell and
Baker and others in agreement, pro-
posed to organize syndicate which
would buy the entire output of coal de-
livered by these railways. That syndi-
cate would guarantee Il market; would
fix the price. would prevent over-pro-
duction and would make Ii easy for the
railroads To make an agreement and
keep II as 10 their proporttonate share
of the coal carrying traffic. Such a
syndicate as that involves the control
of an enormous amount OF money. 1t Is
estimated that 1t will require at least
as much as $50. .000, 900 to make this syn
dicate's work successful. Whether this
report is all true or only partially COR
rect, 1t is impossible accurately to state,
but the impression Is that some such
combination of caDital stands ready to
take the entire output of coal carried
by the railroads has been agreed upon.
and for that reason Ii has been easy 10
bring about the understanding between
the anthracite presidents. 1t is at least
two years since the Press reported ON
the authority of one who is We'll In
formed and somewhat identified with
the anthracite railroads. that combi-
nation of great capitalists. including
the Vanderbilt interests, the Rockefel-
lers, the First National bank party and
some others We're unquestionubly IN
process of formation with view OF
bringing into one harmonious manage
Iltut VI utIuHScitltiit tilt'
anthracite coal traffic. Ii was then
said that Mr.. Morgan would he found
the master hand in such an arrange
ment AS II then seemed the plan con-
tefnplated controlled through reorgani-
zation of the Erie, and through large
holdings of the stock of the Lackawan-
ma. the Delaware and Hudson, and also
by market manipulation such possess
sion of the Reading as would enable
A N fAR a.. n,,is A.
that time representatives of the Van
derbilts were with exceeding adrotness
buying large blocks of the stock of the
Lackawanna, and ii was not until
nearly 10000 shares had been purchased
that 1t was made public that these had
been bought by brokers who We're rep
resenting William h. Vanderbilt. A lit
tie while after the Vanderbilt interests
bought so heavily into the Delaware
and Hudson as to make it necessary to
give those interested representation in
the board of directors so that Cornelius
Vanderbilt was chosen member of
that board. Thus the Nanderbilts We're
found represented i'm these anthracite
roads, and in the reorganization of the
Erie It is surmised that their interests
are indirectly well lcared for. OF course.
Mr.. Morgan is conspicuously assOciat-
ed with the reorganization of the Read
ing, so that 1t seems as though the in
formation given to the Press more than
two years ago is now being justified by
facts. One thing is thought here to be
certain, and that Is that both the
statute law of the states and of the 4
United States, and the common law. are
sufficient to prevent the creation of
such a monopoly of the anthracite trade
as will make it possible for those who
control 1t to eXtort unreasonable prices
from the consumers Moreover, Mr..
Morgan knows perfectly we'll that
there Is even more powerful obstacle
to unjust monopoly than statutes or
the common law, and that is the BIZ
luminous coal product.