Evening star., 1897-02-10
Peace and the Old Rates to Stop the
War.
SHARP, DEM0RALIZING COMPETITION
Pierpont Morgan Believed to. Be
Making a Deal.
GROWTH OF COAL TRADE

The Chesapeake and Ohio railway is 1t is
said, to be made the instrument by which
an end will. 1t is hoped, be put to the soft
coal rate war, which has been raging be-
tween all the principal railway companies
in this section of the country for many
weeks past. 1t Is declared on what seems
to be the best of authority that Mr.. j.
Pierpont Morgan, as an influential friend of
the owners of the Chesapeake and Ohio,
has been appealed to by those whose coal
and transportation business is regarded as
at stake, to devise some plan by which the
coal trade, and especially the transporta-
ton portion, will be restored to a paying
basis.
1t will be remembered that some days
ago The Star published statement from
Receivers Cowen and Murray of the Bal
timore and Ohio. denying the up-to-that-
time oft-repeated charge that the Balti-
more and Ohio was cutting the tariff for
the transportation of the product from the
mines to the Atlantic seaports.
Now, however, the Pennsylvania COM
pany is charged with cutting rates (but this
is denied by Its officials), and this is found
ed on the fact that a certain large shipper
has been making contracts for delivery in
Philadelphia Of coal, which can be gotten
there only over the Pennsylvania lines, for
sixty cents a ton less than the ruling price.
The interesting fact has been developed
since the Hgnt DeSan tnaC the coal on Wnlcn
there has been the most cutting, and also
the cutting that has secured the most
orders, have been those which are shipped
over the lines of railroads in which Mr..
Morgan's influence is either paramount or
at any rate felt to a considerable extent,
where Mr.. Morgan can work through the
Vanderbilt interests, which control them,
and through the Philadelphia and Reading,
which does a part of the hauling.
The Deal With Reading.
The Star has already announced that a
traffic arrangement has been made be-
tween the Baltimore and Ohio and the
Philadelphia and Reading, under the terms
Of which the former delivers to the latter
150 cars. of soft coal per day at Cherry
Run, w. Va, all of which is put on sale in
the eastern markets. Following this comes
the statement that the Philadelphia and
Reading has added a new element of dis
turbance to existing conditions by propos-
Ing hereafter to sell soft coal for some Of
Its shippers. The entrance Of a new COM
petitor into a field said to be already suf-
fering from over-competition is not, it is
asserted, likely to be conducive to stability
Of rates, especially when the new competi-
tor happens to be railroad.
According to usually well-informed cir
cles, the Pennsylvania railroad is said to
regard the situation with some anxiety
especially during the past ten days, when
the Morgan rumors have been more nu-
merous than ever. Officials of the Pennsyl-
vania have, 1t is said, been claiming that
on and after April l peace and rates would
be- restored by the Baltimore and Ohio
Withdrawing the Fairmont COAL, the shic-
ment Of which has served to lower the
prices In the Atlantic seaboard cities, from
the tide-water market, and shipping the
entire product west, as was formerly done
Inc Fairmont shippers traffic contracts
with the Baltimore and Ohio expire on the
date mentioned, but from present indica-
items there is no reason to believe that the
hoS
part Of the haul will be diverted in its en-
tfrety to Its old markets in the west 1t is
further claimed that the Baltimore and
Ohio Is not only satisfied to handle all the
Fairmont tonnage but is even endeayoriny
TO increase the production. 1t is also re-
ported that prominent official of the
Georges Creek Coal Company, which is
understood to be closely allied to the Rail
timore and Ohio company is now at Fair
mont negotiating for the purchase of an
extensive tract Of coal land there
Ihe condition of the trade" said a lead
ing operator to Star reporter both pres
ent and future, thus offers many disturbing
uncertainties. and the most interesting
question before the bituminous operators
seems seems to be: Is Pierpont Morgan now
taking, or Is he about to take an active
part in the shaping of soft coal affairs?
Declined to Form u Trust,
1T is not generally known that two or
three years ago Mr.. Morgan was asked bv
1Orma-
ton OF soft coal combination in the form
OF a trust and to place the bituminous
trade on stable foundation by the oreani-
cation Of a combination, which should en-
prace the majority Of the leading producers
shipping their output to the Atlantic sea-
board se
He declined to take active steps in the
matter then, but the general impression is
that he has kept 1t in mind ever since, and
that he has been. working in his own way.
1t is not likely that If such a thing were
contemplated the public would be Informed
OF II before all the plans were perfected
'Denials are, therefore, to be expected
But can tell you this: that the railroads
directly or indirectly under Mr. Morgan's
innuence are pursuing policy difficult TO
sumption that he has some coup in view:
that some of the Pennsylvania railroad
omclals seem uneasy; that the trade is
drllting toward utter Generalization, and
tnat strong and radical measures are need
ed to prevent 1t from doing so altogether
and that since there Is now no organiza-
ton among the shippers. they may better
,'e, De orsanized by one strong interest than
Dy score OF weak ones. One commanding
influence Is needed. not a dozen vacillating
spirits.
1T may be that Mr.. Morgan will wafr
until the trade is in such demoralized
condition as to be ready to acquiesce in
any plan that may be presented. If that
Is the case, and Mr.. Morgan's roads keen
on doing what hear they are now doing
don't think we shall have to wait more
than a few months. The best general is
one who knows both when to wait and
when to strike. Mr.. Morgan is admittedly
born financial general"
Growth of Soft Coal Tramc.
In speaking on this subject a leading
Baltimore and Ohio official said yesterday
to a Star reporter: ''Some years ago the
Pennsylvania and the Baltimore and Ohio
companies carried about all the steam coal
to the seaboard, and history shows that
they practically participated equally in any
benefit arising from this traffic. Later on
when there was q development Of the coal
mining interests In other localities notably
in those adJacent to the Norfolk ana west
ern and Chesapeake and Ohio roads the
market. OF course, felt that the field was
wfdened. From figures that are available
1t appears that but little inroad has been
made on the percentage previously handled
by the Pennsylvania railroad, but the pro-
portion from the Baltimore and Ohio was
materially reduced. and while today the
Pennsylvania is carrying nearly one-half
Of this character of Goals. the balance is
not far from being equally distributed
among the other lines, Indicating that the
fields which are dependent linofl the Rolff.