Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-10

1
at fancy prices7"
mot only is that true. but am informed
on authority which I believe to be good
that all sales agents Of the various coal
OF the Lackawanna and the Reading. OF
course. Xou could hardly expect either the
sales agents or the officials of the roads to
admit 1t.
IT understand" continued the Herald's
Informant, that such inducements have
been offered these sales agents recently as
1t would hardly be in human nature to re-
sfst. The prevailing terms that have been
offered and accepted, according to my in
formation and belief, are these:
Ihe usual 10 cents ton for every ton
sold at the rate Of S. and a 10 per cent adj
ditional to- the agent for each dollar a ton
received in advance of that price. That is
to say, the agent, If he managed to sell in
dependent coal today or tomorrow at $11,
would receive as his percentage on such
sale 40 cents for each ton sold at that
price, or, 90 cents for each ton sold at 50
a ton.
Remember, too,- that the dealer buys by
the long ton, or 2,2i0 pounds, and sells by
the short ton, 1900 pounds, and this
amounts to just IL per cent.
''On an ascending scale Of 10 cents ton
profit for each additional dollar ton which
that the agents selling on these terms are
making money rapidly, and 1t is easy to
understand why plenty of independent coal
can be had by those who are ready to pay
the price.
1T. is well worth that price to the indie
pendent operators to have such allies. I'm
der the old sixty-five per cent agreement
the railroad companies marketed the prod
uct of the Independents for them through
these very sales agents. These men, there
FORE are men well-known to the trade, re-
liable and familiar with the purchasing
dealers and consumers. Without them the
independents could not hope to market their
product nearly so expediciously or profta-
bly, to themselves"
The Company's Side.
When a reporter for the Herald repeated
the substance Of these assertions to Gen
eral Manager Childs Of the New York, On
tario and Western railroad, he said the
figures showed that his company is now
bringing to tidewater at New York consid-
erably more anthracite than at the same
period last year, and that nearly all Of 1t Is
company coal. as the Ontario and Western
has only two individual operators on its
list Of shippers. He was confident his COM
pany's agents were not party to such
commission scale arrangement as had been
described.
At the offices of the Lackawanna Presi-
dent Truesdale sent out word that he had
nothing to say on the coal situation, and at
the headquarters Of the Lehigh Valley Coal
Company all information was refused. A
general manager of one Of the other big
Companies said that as the Lehigh Valley
handles so large percentage Of the indie
pendent output. its docks and terminal IA
cil1ties here are now so congested with the
independent coal at the $40 price that it has
practically no facilities left for bringing
into the market any company coal at the
IS rate.
An Independents View.
Speaking in behalf Of the Independent coal
operators, Clarence D. Simpson of Scran-
ton, Pa, said:
h xryf4I
pie; but have not the philanthropic railroad
companies been looking after the poor peo-
pie? Let them continue to take care of the
poor. We are taking care of the wealthy.
helped to bring about this situation when
they contributed of their earnings to help
keep the anthracite miners out on strike"
Mr.. Simpson was formerly the partner Of
member Of President Roosevelt's commits
sion investigating the coal strike He con-
trolls two independent collieries, and often
comes to New York on business.
ITO my mind" he went on, this situa-
ftion is simple The amount of Independent
coal coming to New York is not so great as
is reported. There is a genuine shortage of
supply. The total anthracit output during
the winter months, under most favorable
conditions, can hardly exceed 100000 tons
each month. The regular demand during
those same months is about 100000 tons a
month Ordinarily the excess of demand
over supply is met by drawing upon the re-
serve This year, there is reserve, be-
cause of the strike, consequently We are
short
Why the Break Came.
IF Before the suspension of the GO per cent
agreement the coal-carrying companies
were practically the sales-agents of the in
dividual operators. AS such they were
bound to sell their product at the market
price. Instead of doing SO they insisted
upon selling IL at an arbitrarily fixed figure,
away below market price. Some individual
operators who were not in this agreement
found 1t easy to get much better prices.
This was unfair to the majority Of the in
dependents, and they insisted upon sus-
pending the agreement When coal comes
down to a normal basis, it will with an
abatement of the demand, rates will adjust
themselves to their normal level.
while coal remains scarce the independ-
ents will simply sell 1t where it will bring
the best price There is no truth in the re-
ports that they are sharing their profits
with the railroad companies"