Evening star., 1899-03-14
PROPOSED COAL COMBINE
Views Of Local Dealers Of It's Effect on
Prices.
The Trust Not Regarded as Perman.
ent - Effort to Control Output
Deemed ImpracticnbIe.

d. L.
has succeeded in forming a gigantic coal
trust, which comprises all the greatest coal
and railway lines of the coal-producing
districts east of the Ohio river, leading
dealers here who have discussed the sub
ject with a Star reporter do not anticipate
that there will be any extensive permanent
advance in the price of the black diamonds
to consumers. Some of the coal merchants
go so far as to say that they are sure the
trust will not have permanency.
1T has been proved" said one dealer. 'in
the last thirty years that coal combinations
have not been successful, and it is folly for
any one combination to try to control the
coal industry of the country.
I'm the first place, there are too many
sources of supply. New fiel1s are being
opened every year, which produce coal In
greater abundance than the older fields. In
order to control the coal interests of any
one section of the country it would compel
the combination to buy up nearly every
piece of ground in that section. The coal
interests of this country are SO extensive
that it would be difficult. if not impossible,
for any combination, trust or monopoly TO
control it.
1T is quite plain that before the coal in
dustry can be controlled by a single or
gdniZation it will be the object of such an
organiza ton to obtain the maximum price
for Its productions But any efforts in that
direction would be futile. In this growing
generation there are too many substitutes
for coal, and especially anthracite Coke is
cheaper. also is soft coal. The methods
of heating buildings are no longer depen-
dent upon anthracite coal. Steam heat is
produced quite as easily and much cheaper
by means of coke. soft coal ana natural
gas. and the tendency of the present day is
to adopt these measures, whether there is
a coal trust or not
Plan Not Practicable.
Another dealer said: Il am not surprised
at the announcement that the final arrange
ments for the big coal trust have been
made. l do not think the plan to monopo-
lie the coal industry of this country a
practicable one, for the reason that there
are too many substitutes for the article
which will be adopted without hesitation
at the very first attempt to put the price
of anthracite coal any higher than it now
is.
and there were rumors current at the time
that large coal combine was in process of
foIma ton. | talked with a few men who
were in close touch with Mr.. Morgan, and
learned from them that not only the
combination being formed for the purpose
of controlling the coal business. but that it
also contemplated controlling the railroad
interests well.
There was a reported plan that several
coal mines lying along the lines of the coal
carrying roads also We're to be bought in
order to prevent competition between the
respective railways and for the purpose of
securing stability of prices of coel and of
rates of freight for coal transportation
There is much in the way of successful
completion of this rumered project. The
experience of the last twenty-five or thirty
years has demonstrated that when railway
companies go into the mining and selling of
coal the results generally are disastrous.
The business of railroading and mining
should not be carried on by one and the
same company.
when the plan of operating mines by
railway companies was first introduced by
the late Franklin b. Gowen, who was
president of the Philadelphia and Reading
Railway Company, the company was one
of the strongest and soundest railway cor
porations in the country. 1t paid hand
some dividends, the stock was above par
and the road was considered one of the
best of railroad properties. The effort to
operate mines in conjunction with that of
railroading and to operate coal mines along
its lines drove the road into bankruptcy.
THE coal interests of this country are
so vast that it would be difficult, if not i'm
possible, for any corporation or any trust
10 monopolize or control it. The Standard
Oil Company has been enabled to monopo-
liZe the production of oil, but it is due to
the fact that the oil territory is compare
lively limited in extent, as compared with
the area of coal lands in this country OF
course, unll MI Morgan makes Know n
definitely his plans. what the result will
be cannot be estimated. But ii is quite
plain. before the anthracite coal business
can he operated and controlled by single
organization that organization will seek to
obtain the maximum price for its proIuc-
ton. Efforts. however, to advance anthra-
cite coal much beyond existing prices
would have the effect of causing the public
to buy other kinds of fuel that could be
used as substitute for anthracite coal.
Several times during the last few years,
when prices have been abnormally in
creased. the sales of hard coal have CORE
spondingly diminished. During the last
thirty years, ending with January, 1898,
the increase in the production and con-
sumption of anthracite coal was about
threefold, while during the same period
the production of bitumnous coal has
shown more than tenfold increase in vol
ume. In other words, the increase in con-
sumption in this country during this Pc
riod of soft coal has been more than three
times as rapid as that of hard coal.
The substitution of soft coal or coke
and of natural gas for anthracite coal in
many parts of the country has exerted the
most potent Influence in keeping down the
prices of hard coal. These same influences
will continue in the future the same as in
the past. Many of the rich and well-to-do
are putting appliances in their homes for
steam heating where soft coal is found
to be the most economical fuel. Coke has
more units of heat and is more economical
than anthracite coal, and can be manufac-
tured and sold a price where 1t is much
cheaper than any other fuel. In word,
any combination, any trusts or syndicates
controlling the anthracite coal or the coal
of any one particular region cannot mate
rally affect the general price of coal for
any length of time In this or any other
large market of the country
~
Spring Flowers, soc. Dozen
Including roses. GUIDES flowers are al
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GOOD TEMPLARs ELECT OFFICERS.