The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-14
Controls Prices with an Iron Hand,
Yet No One Seems to Know the
Directing Head.
WORK WELL SYSTEMATIZED
FIXES RATES AND DISTRIBUTION
THROUGH A SECRET BOARD.
Owns Mines and Railways and There
fore Has n "Cinch" Which Knox
VIII Find Hard to Destroy.
pecial to the indianapolis journal.

Special to the indianapolis Journal.
WASHINGTON, May 13.-With perhaps
the single exception of the Standard Oil
Company, the anthracite coal trust has
the most compact and at the same time
elusive management of the great indus
trial combines. The anthracite coal trust
is omnipotent In the hard-coal trade, yet
Ii has absolutely no existence in fact. The
anthracite coal board fixes the output at
the mines. controls the mining territory,
fixes the price to the operators, directs the
distribution. fixes the carrying rate for the
railroads, decides where hard coal shall be
used and where soft coal be burned, estab-
fishes selling prices for the jobber and the
retailer and declares the amount each shall
sell and when it shall be sold. 1t author
ICES certain men and companies to ship
coal and denies to others the privilege. A
business man at Hazleton may ship a
carload of hay to Detroit. but he must not
ship a carload of coal. Yet all this is &C
complished without an organization of rec
ord. Even the coal which is burned in pri-
vate houses in Indianapolis has every
charge upon it fixed by this mysterious
trust, yet no one can find the slightest
record of the work of the original power.
'NO -
in the world Of nance do not know how to
lay their hands on the directing influence
Of the hard-coal trade.
Probably Attorney General Knox, whose
professional existence had been among
the big corporations of Pittsburg, who
know all about the power of this trust,
may be puzzled to know how to bring it
into court. The hard-coal mines are in a
aapon ~ 70 fivra1r opoall diet~fo& aol +ho tro1z
portation is in the hands of nine railroads.
1t is not possible to get a ton of coal from
the mines without the consent of these
roads. This is the inspiration of the power
of the hard-coal trust. These roads have
what are known as coal agents, and they
manage the coal business of the various
anthracite roads. These nine agents have
what is known as an executive committee
of five, which is known as the anthracite
board. The members of this are men high
in the councils of the railroads and strong
in the financial world. They meet in New
York and Philadelphia and other places,
but no one knows just where and when.
Very seldom are all present, but some of
those present know the views of the abb
sent ones. They may have their confer
ences over a period of days at odd times
on cars, at dinners. over the telephone and
always without continuous or discriminating
record.
The business of sale and distribution has
been highly systematized by years of close
practice that runs for the various seasons,
without much direction, beyond seeing that
the implied orders are carried out. A shift
in price In one point means certain things
all along the line and all concerned un-
derstand. Every Monday the order goes
to the mines from the interested railroads
as to just how much coal can be shipped
that week. The operators can also get
from the various agents of the roads the
tentative plan for weeks or months ahead
and they can make their future arrange
ments accordingly. The anthracite coal
cies to the various agents by word of
mouth. Each road has its own business
with a show of independence. but in the
main they are working under the policy
of the board.
There is one feature of this trust which
the Department of Justice probably can
reach quickly. That is the rate discrimina-
ton. Hard coal pays heavier rates than any
other freight of the same general, not
technical classification. 1t is charged al
most three times as much as soft coal.
This is because the roads can much better
absorb the profits than they can be COL
lected in any other way. The coal trust
own the railroads and does not own the
mines, and, therefore, 1t is more convenient
to take the profits in transportation
charges. Mr.. Knox can doubtless reach
plete investigation of this mighty and mys-
terious trust which the coal strike will
bring from Washington.
OTTO CARMICHAEL.