The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-09-27

These prices were arbitrary and were
fixed by agreement among the railway
companies, and there is no rational eX-
PLANTATION for the extraordinary varia-
tions. It did not cost a penny more to
produce a ton of coal in 1898, when it
sold for 1919 a ton, than in 1895, when
it sold for $297, and the falling off in
price caused a corresponding loss to the
stockholders of the railway companies.
Since 1893 there have been produced over
300,000,000 tons of coal, and if the price
of the year had been maintained the own
ers of the mines and the railways would
be richer now to the extent of $3.50, 900, :
600 or Whereabouts. The average price of
coal during all the years since 1893 was
1928, or 81 cents less than the maximum
in that year.
The moral of this story, as drawn by
the operators, is that they cannot af-
ford to increase the wages of their en-
ployes because they never know when
coal is going up or down. When it sells
for 1878 at New York they make large
profits. When it sells for $2.97 they lose
money, and they never know what their
product will be worth nor what their
profits will be. They are entirely at the
mercy of the railway companies, who
can make them rich or ruin them by
marking up or marking down the price.
The railway managers admit that it
would be an ideal condition if the rates
of coal could be fixed permanently. but
they explain that it would be necessary
to have a summer rate lower than the
winter rate or all the business would be
crowded into the winter months and the
mines and railways would be idle all
summer. A lower rate in the summer is
an inducement for both dealers and con-
sumers to buy, so that the monthly out
put does not vary a great deal through
the year. The smallest demand is in
April, May and June, when the output
will average 100000 tons a month In
September and October, the heaviest
months, it will run as high as 4,500 900
and 5,000,000 tons.
The railway managers explain how
ever, that such an arrangement cannot
be made, first, because it is forbidden
by the antitrust law as interpreted by
the Supreme Court, and, second, without
a distinct and positive contract or agree
ment, it would be impossible to keep
the railways straight. On several occa-
sions such a thing has been attempted.
The managers have met and agreed that
the prices of coal for the next six months
should be so and so. For awhile the
rates were maintained, but when some
big contractor came along and offered to
buy a large quantity at shade lower
than the established price it was diff
cult to resist the temptation. If there
were a lawful way under the Sherman
law to force such an agreement a scheme
might be successful, but the spirit of
competition will not permit them to last
long.
The fluctuations in the prices of coal
are usually caused by natural conditions.
The selling agents of the different COM
panies have wide discretion and handle
large lots-thousands of tons in single
sales-for which they regulate the price
according to the state of the market, the
supply on hand and the present or pros
pective demand. There is supposed to
be more or less speculation in it also,
but that is difficult to trace. 1t never
theless remains true that as long as the
railway companies can lower or advance
the price of coal at will the operator
will have an excuse for not raising
wages.
Another poant in the controversy is