The times., 1901-04-17
THE COAL SITUATION.
Joseph :. Harris Testifies Before th'
Industrial Commission.


Joseph S. Harris, formerly President OF
the Philadelphia and Reading Raiiway
Company. testified before the Industrial
Commission yesterday concerning the an
thracite coal situation and certain rail-
road matters. Mr.. Harris was President
of the Philadelphia and Reading system
until two weeks ago. when a general re-
organization was had consequent on the
absorption of the Central Railroad OF New
Jersey by the Reading.
Mr. Harris stated that the failure oil
the Philadelphia and Reading Company
in 1898 was for a very simple reason-the
company had neither the money to pay It's
debts or the interest on it's Indebtedness.
The reorganization was likewise for a
simple reason--the necessity for setting
the company again firmly on it's feet. Ihe
Reading Iron and Coal Company, he eX-
planned, now controlled the coal lands
and collieries, the Philadelphia and Read
ing Railway carried the tonnage OF the
coal and iron company, and the Reading
Company controlled harmoniously the IN
terests of both concerns.
There was no combination of railroads
in fact or prospect to control the codi
output of the anthracite region. Inc
Reading Company was only responsible
for 20 per cent of the output of hard coal
from this region The Pennsylvania road
had always acted independently rms
alone would prevent the consolidation OF
the roads. If such thing had been con-
tempIated as a bare 10 per cent OF the
entire output of anthracite coal thrown
independently on the market would auec'
the market price appreciably-
Mr.. Harris thought. however, that the
various railroad companies in the anthra-
! cite region were drawing more closely To-
! gether on lines of general interest, ana II
! there ever was an agreement entered lhle
| for the purpose of industrial harmony
| it would result in an economy in putting
| coal on the market and hence direc'
/ benefit to the consumer. 1t would also
! do away with possible cut-throat compe
| tition of railroads, such as there-had beer
| in the past, a considerable item would b'
saved in doing away with middlemen, ant
! of all these economies the public woule
partake.
| AS evidence that this harmonizing o.
interests between competing roads, ever
| in a slight degree had worked for tn
! general good, Mr.. Harris stated tina
! freight rates had gone down in the las
six or eight years in an appreciable de
the better understandings between com
peting roads improvements in service
and greater facilities for handling larg
! tonnage For the roads to combine AM
raise the price of hard coal at this tim
higher than ii now is would, Mr.. Harri
said be very disadyantageous TO IN
roads themselves. 1t would excite IN
desire for competition, and if competi
ton came bankruptcy would be the por
ton of some of the competing lines.
Mr. Harris stated that the marke
price of anthracite coal was settled by
conference among the selling agents.
was true, he admitted that Il circula
letter was sent out by the PhiladelDhi
| and Reading every season to other con
panies giving the market prices of the
various grades of coal. and that the otht
companies usually followed suit an
adopted the prices set forth in the circl
, lar. There was no compact, howeve
forcing them to do So
. In speaking of the undeveloped co
lands owned by the Reading Compar
which were purchased years ago in antic
patton of future needs, Mr.. Harris sa
he thought too large an investment NJ
{ been made at that time, as such lant
l | proved a-tax upon the present earnings
! | the company. upon the stockholders al
r consequently upon the consumer. The co
l of coal to the consumer would continl
1 10 increase for logical reasons, he though
as time went on. Where IL was former
possible to mine surface coal shafts tho
/ sands of feet deep were necessary, al
t consequently the cost OF mining W
= far greater, as was also the labor atte
I dant upon mining in deep veins.
In closing. Mr.. Harris said that he
not believe that combination of roa
could be organized so large as to COVE
= the situation and create an absolute m
\ nopoly. He rather thought that the nece
4 stiles of the situation would govern I