The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-09-21
NO BIG COAL TRUST.
Morgan Has Refused 10 Garry the
Deal Through.
DIDN'T HAVE HIS WAY IN PRELIMINARIES
Probable That There VIII Now Be Half
a Dozen Small Combines Organ
lied to Run Up Prices.

Philadelphia September 0.--Perpont
Morgan, because Of the failure Of certain
important interests to accomplish what
they undertook In preparing the way Tor
the organization Of gigantic bitumlnous
coal company as condition precedent TO
his taking up and financing the deal, has
drawn out, It is declared by one Of the In.
sidors and now the great project. which
those concerned had come TO regard MS as.
sured, Is in danger Of going to pieces.
When tho plan to unite under one cor
porate control all tho best soft coal proper.
tics in seven states east Of the Mississippi
river and north OF Virginia, took definite
form few months ago, the promoters
asked Mr. Morgan II he would attend the
nnnl steps OF actual consolidation and
finance the deal from that point on.
On stated conditions, which others were
to bring about without his assistance, Mr..
Morgan agreed to do what was asked. The
big interests working up the combine UNI
dcrtook TO arrange all the prcminarics and
handle
To this end the allied coal properties in
certain districts were consolidated into
big corporations created for the purpose,
such as the $50, O0o.00O Falrmont Coal com.
psny Of West Virginia. and options were
obtained on other properties desired The
effort was to get everything In shane for
the final stroke of consolidation, which was
to he left to Mr.. Morgan'S master hand.
But II seems the program so well ar
ranged has not gone through rs looked for4
Unforeseen difficulties arose, IL was found
that options were not 10 be obtained SO
readily as expected, and many compGl
lions delayed matters. But options. many
Of which had been. procured by posting
cash forfcits, began TO expire. This coudl
tiou OF affairs led to an informal and secret
meeting in New York last week for the
purpose OF deyising means to carry on the
deal.
What made the situation more complicat-
ed, 1t Is said, was the fact that the time
had already expired when Mr. Morgan was
10 take hold Of the deal, while II was sim
far from being advanced 10 the stage at
which he had agreed to assume charge.
II is limited that tine time had been post
poned 10 later date on two previous oc.
Now 1t is asserted, Mr. Morgan consld-
ers his obligation 10 the promoters at an
end
will he able to carry II through depends
upon their ability Ia command the ncces.
Hary capital 10 get expiring options re,
newed and to obtain the additional coal
! bne success. To carry tho deal to the
| point at which Mr.. Morgan was to take
| II up VIII require, II Is believed, not less
! than S200OO.O0O in cash.
! Much of the money already put into the
| scheme is understood n have been bor
rowed, and in tho present condition of the
! financial market II viii he a difficult un
dertaking to raise $50 100000 for an enter
prise the success OF which Is not assured
Senator Hanna who. Il is declared wal
to control the Ohio coal field for tho com
blue. is expected to abandon the undcrtak
ing
There Ia also trouble IN the Pocahonta
coai field. because OF failure to obtain op
lions on certain tracts. 1t seems probable
| that the big deal which was 10 cover III
entire Porahontas region, viii end In til
purchase of the Flat Top lands alone. Th
latter are owned by Philadelphia capital
lists ~
II the plan shall fall Through in its en-
tlrety Il is probable that there Will stll
be n half dozen great consultations. Tn
options obtained in Illinois and indiana
hold until February .. so that there is n
trouble in thnt direction.