The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-17
THE COAL SITUATION.
Joseph s. Harris Testifics Before the
Industrial Commission.
Joseph s. Harris. formerly President {

tuuustrtal commission
Joseph S. Harris, formerly President OF
Philadelphia and Reading Railway
Company, testified before the Industrial
Commission yesterday concerning the an
thracite coal situation aud 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 of
the Philadelphia and Reading Company
in 1898 was for very simple reason-the
company had neither the money to pay its
debts or the interest on its Indebtedness.
The reorganization was likewise for a
simple reason-the necessity for setting
the company again firmly on it's feet The
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 tremendously the in
terests of both concerns.
There was no combination of railroads
in fact or prospect to control the coal
output of the anthracite region. The
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. This
alone would prevent the consolidation of
the roads. If such thing had been con-
templated, as a bare 10 per cent of the
entire output of anthracite coal thrown
independently on the market would affect
the market price appreciably-
Mr.. Harris thought, however. that the
various railroad companies in the anthra-
cite region We're drawing more closely to-
gether on lines of general interest, and If
there ever was an agreement entered into
for the purpose Of industrial harmony
it would result in an economy in putting
coal on the market and hence a direct
benefit to the consumer. 1t would also
do away with possible cut-throat compe-
tition of railroads, such as there-had been
in the past, a considerable item would be
saved in doing away with middlemen, and
of all these economies the public would
partake.
As evidence that this harmonzing of
interests between competing roads, even
in a slight degree, had worked for the
general good, Mr.. Harris stated that
freight rates had gone down in the last
six or eight years in an appreciable de-
gree. This was due in great measure to
the better UNDERSTANDINGS between com
peting roads, improvements in service.
and greater facilities for handling a large
tonnage. For the roads to combine and
raise the price of hard coal at this time
higher than it now Is would, Mr.. Harris
said, be very Instantaneous to the
roads themselves. 1t would excite the
desire for competition, and If COMPETE
ton came bankruptcy would be the por-
ton of <some of the competing lines.
Mr.. Harris stated that the market
price of anthracite coal was settled by a
conference among the selling agents 1t
was true. he admitted. that circular
letter was sent out by the Philadelphia
and Reading every season to other com
panies giving the market prices of their
various grades of coal. and that the other
companies usually followed suit and
adopted the prices set forth in the circu-
lar. There was no compact, however,
forcing them to do so.
In speaking of the undeveloped coal
lands owned by the Reading Company
which were purchased years ago in antici-
patton of future needs, Mr. Harris said
he thought too large an investment had
been made at that time as such lands
proved AJAX upon the present earnings. of
the company. upon the stockholders. and
consequently upon the consumer The cost
of coal to the consumer would continue
to increase for logical reasons, he thought.
as time went on. Where Ii was formerly
possible to mine surface coal shafts thou
sands of feet deep were necessary, and
consequently the cost Of mining was
far greater. as was also the labor atten-
dant upon mining in deep veins.
In closing, Mr.. Harris said that he did
not believe that a combination of roads
could be organized so large as to govern
the situation and create an absolute mo-
nopoiy. He rather thought that the ueces-
stiles of the situation would govern the
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