Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-25

controlled the coal situation, including out
put of the mines and price. is well known
How they have done this as well as a his
tory OF their contentious among themselves
makes brief chapter of interest at this
Tune This history is given in what Is
perhaps the most authentic and concise
manner by Mr.. Henry S. Fleming, secretary
" 'he Ahthracite Coal Operators Associa-
uoh Mr.. Fleming says:
In the earlier days of the anthracite in
oustry there were in only a few individual
cases contracts by which the railroads or
the coal companies operated by them pur-
ohased coal from independent opera tors
The Lehigh Valley and several Others had
an arbitrary freight rate which was adj
vanced or decreased as the average price
al TIDE water changed The Delaware
LAckaWanna and Western and the Della
ware and Hudson. both of whom handled
coal from independent operators took If on
sliding scale under the labor-basis con-
tract The various contracts and rates of
freight netted the operators from 40 to Az
per cent of the tide-water price and less
than this in the case of certain competitive
points to which the arbitrary freight was
charged.
When the New York, Susquehanna and
western was projected into the Wyoming
region its promoters agreed to buy coal
from the Independent opera tors and paw 10
per cent of the tide-water price; but there
was long and hard fight before it was
putt and It's completion was delayed until
1854, though prior to that time the COM
pany had been buying and shipping coal
under its contracts
In 1893 Coke Bros. & Co., the largest ship
pers among the individual operators an
pealed to the interstate commerce commits
sion against the rate charged against their
coal by the Lehigh Valley Railroad Com
pany. During the progress of the hearings
the railroad company reduced it's freight
rate slightly. The decision, announced in
hot ~,
Issue were outside the scope of the commits
SION and that the rate then established
should not be advanced.
In 1880 the New York, Ontario and West
ern railway built extension into the
upper Wyoming region after securing a
guaranty of sufficient tonnage, Offering to
transport the coal for 40 per cent of the
tide price and later agreeing to buy the out
put and pay % per cent of the f. o. b.
price. Other railroads gradually made a
similar advance In 1892, after a series
of consultations between the president of
the Reading railroad and a committee rep-
resenting the Individual operators. a CON
tract was drawn up giving 60 per cent of
the tide price to the operators, and this was
entered into by the various companies Their
under the control pr influence of the Read
ing.
The Latest Agreement.
These contracts extended for seven years
and expired in 1899. In 1898, after repeated
efforts had been made to secure the promise
OF their renewal on more favorable terms
each falling any definite result the indi-
vidual operators organized the New York
wyoming and Western Railway Company;
surveyed a line from the Wyoming region
to tide water; bought several thousand tons
of rails; secured right of way. satisfac-
tory tide terminal, and began construction.
Upon this negotiations We're opened by the
railroads, eliminating, after nearly a year,
in satisfactory plan, which was begun,
but not completed. After this, the oppor-
tunity occurring, the interests of the opera
tors were consolidated with the Pennsyl-
vania Coal Company, the bed of the aban-
doned Delaware and Hudson canal was
purchased, and the Delaware Valley and
Kingston Railway Company Incorporated.
The contracts upon which this new road
was to buy the operators coal gave to the
latter Go per cent of the tidewater price,
or in other words, reduced the freight rate
from one-half the f. o. b. price, which it
was prior to the 1892 contracts, to but lit
tie over one-third, besides making even
more material concession in pea coal and
the smaller sizes. and giving an opportunity
for more days work each year than had
been possible under the former arranget
ment. Under such conditions the operators
had hoped to be able to market their coal at
lower price, thus reducing the cost to the
public. while receiving themselves the bene-
fit of the increased output.
The existing anthracite companies opposed
this new railroad. both by endeavoring to
obstruct its right Of way and by a legal
night. But as one after another decision
resulted favorably to the new enterprise it
became apparent that other steps were
necessary to be taken
Therefore the Pennsylvania Coal Com
pany was bought by Messrs. ]. Pierpont
Morgan & Co of New York city in January
1901. at an increase OF 752 per cent upon the
par value of the stock. This property was
Immediately sold to the Erie railroad and
thus the contest was closed Almost i'm
mediately after this transaction a number
of other Individual properties were bought
up by different railroads, and there was
more or less of scramble the part of
certain railroads to secure properties and
upon the part of certain individual opera
tors TO sell out. as it was thought by some
that an attempt would be made to force out
the remaining Individual operators.
1t can readily be seen by this that IL
determined and united effort were made by
the roads to bring the operators and miners
together. the experience gained by them in
their rate sQuabbles would enable them to
suggest and enforce basis Of settlement.
A warrant has been issued for the arrest
of William Redmond. the Irish member OF
parliament for making an incendiary