Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-10
BAER AND. ASSOCIATES
CAN MAKE PRICES NORMAL, AND
AT ONCE, IF THEY CHOOSE.
Sudden Solicitation for Unfortunate
Consumer. Laughed at by One
Who Understands.


The New York Herald, in its news col
unns today, prints the following:
You may put down these assertions as
being pretty close to the facts: Mr.. Baer' 8
sudden solicitude for the unfortunate coal
consumer is too specious to deceive any
but novice in the business. The great
coal carrying roads, of which Mr.. Baer Is
the leading parsonage, could break this
corner in coal here in New York and send
prices down to normal figures in twenty
four hours if they sincerely desired to do
They are deliberately refraining from
serious competition with the Independent
operators at this point. and by doing so
they are not only enabling the Independent
operators to make tremendous profits by
controlling the New York market, but they
are also making more money for them
selves by selling the company coal at in
termed1ate points instead Of at tidewater,
and that point can easily be demonstrated
by offering excessive commissions the
Independent operators have now won as
their allies the sales agents of the vari-
Gus coal roads themselves, all of whom, 1
believe, with the probable exception Of
the sales agents Of the Reading and the
I1ackawanna,f are receiving big premium
for the handling of the independents out
put and are simply growing wealthy at ii"
Speaks by Authority.
These statements were made yesterday to
reporter for the Herald by a man who
for years has been recognized lead
Ing authority in the anthracite coal trade,
and whose relations with both company
and Independent operators have been and
are close and confidential Few men in
New York have better facilities for under
standing the real conditions that have
brought about the present famine prices for
coal. Turning to figures which were ready
at hand, he continued:
You will observe by this table that for
1oOl the independent operators total output
of hard coal was less than IS per cent
Of the aggregate output. 1t has been a
steadily diminishing percentage since 1880,
because each year the coal roads combina-
ton has been absorbing more of the indie
pendent collieries. Now. the trade under
stands we'll enough tina 1.-THE men controlling
only seventeen per centiof the total output
could not corner the market and dominate
prices unless the men controlling the other
SO per cent were content to let them do so.
The protests of Mr.; Baer and others are
mere bluffs. -; Is rtf--i.s-.r..
/ 'It is "a simple fact that for the present
1T means big profits to the independents for
them to rush, all the coal they can into this
market AT the same time it Is more prof
liable for the big companies to. unload their
output at intermediate points than to bring
it down here to tidewater and sell it at the
price they have pledged of IS ton on
board. You must Remember that the S. a
ton rate quoted at tidewater is a price that
includes the freight. Prices quoted for
not include the ffefgiis!a For such sales
the common form of expression is SO much
per ton at the mines, plus the freight
Where Law Comes In.
"And just there lies the little secret. or
course, the interstate commerce laws make
it impra cticable for the railroads to tinker
their freight rates. They cannot charge more
for short haul than for long haul, but if
the normal freight rate a ton from the
mines to a town-say twenty or fifty miles
nearer the mines than is New York-should
be $1.40 they can fix the price for a ton OF
coal AT the mines at 1910 plus the freight
New what is the result? Add the So. %
for the coal to the $40 for the freight and
the company gets for that ton of coal s.. Is.
1t makes 10 cents ton more than it could
make by selling it at tidewater for New
York. and at the same time it escapes the
necessity of hauling it the remaining TWEEN
~ or fifty miles that lie between its point
Of destination and tidewater That is eX
actly why the big companies that are now
bound in common to the IS rate at tide
water are making more money now by
catering to the market at intermediate
points and leaving the independent opera
tors to food the New York market with
their coal at $40 a ton. OF course, they are
not making profits as fast as the independ-
entS are, but they are selling at points
where they are not bound by self-imposed
tariff. rather than trying 70 break down
prices here by selling at point where they
can realize only IS a TOM
But have they not large contracts at
hdewater which they are under obligations
to fulfill?' .sr
"Of course, they have, but every one Of
those contracts contains strike clause
which enables them to evade its fulfillment.
1t may be reasonably argued at present
that the disorganiZed state of the co al mar
ket Is due directly or indirectly to the great
strike.
Where Motive Rests.
What were the real motives that led to
the agreement to suspend the IS per cent
contract?
ION the part of the individual operators
the controlling motive was doubtless cupid
ity, a desire to take advantage of a golden
opportunity. They had often been squeezed
by the big coal carrying companies, and
they often had seen those companies
squeeze the public. Now they had the I'm
usual opportunity to do the squeezing them
selves On the part OF some Of the indie
pendent operators, moreover I think there
was a desire to make a sort of display of
power for the purpose of inducing the big
coal roads to absorb their plants later at a
good price. as the roads have already alb
sorbed many of the formerly Independent
collieries.
'.As for the coal carrying; companies. their
reasons for consentfug 70 the suspension Of
the agreement without serious resistance,
think, were varfous~ They did not dare test
the validity of that agreement In the courts.
Despite what Mr., Raer says it was an IL
legal contract, and ope Ia restraint Of trade.
sustained in court Ii that under which the
allotment of cars was made to the individual
operators in supposed 9roportion to their
individual output. Ehe tadividual operator,
of course. has no cars Of his own and is de-
pendent upon the railroad for transporting
his product Good l4wyefss have maintained
that under test OK Law the court would
have held that thes railroad as a common
carrier. must supply tor such an operator
whatever transportation facilities he may
require, and not merely such quota as it
may choose to allot bin,
"At time whep the country and its
President are aroused to the necessity of
VAf