Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-11-12
Big Controversy in Pro-
grsss Over Coal Contracts
S60,000,0OO And Thousands Of
Employees are Affected.
Protrastsd Legal Battle In the
Courts Is Now Pending.

Sydney, c. s., Nov. n.-Property
valued at more than s60.00O000 and
thousands of employees are affected by
& controversy between the DOMINION
Coal Co. and the Dominion Iron and
Steel Co. regarding contract entered
into in 1903 whereby the Coal Co.
agreed to supply the steel plant with
500 900 tons of coal year at VIA a
ton, One result of the difficulty has
been the closing of many Of the blast
furnaces and other departments by the
steel CORPORATION. which has on its pay
roll the names Of 1000 hands. The
Steel Co. asserts that the other concern
had not supplied sufficient coal to en-
able it to operate its plant.
The Steel Co, General Manager Jones
announces, is making arrangements
for its other collieries in this province,
Wales and the United States for sup
NV. Mr. Jones states that he expects
to resume operations Of the closed fur
naces within a short time. The general
manager says that the coal furnished
by the Dominion, Coal Co. has not been
Of the quality desired.
The Dominion Coal Co. Saturday is
blame for the crisis in the two indus
tries upon the Steel Co. The Coal Co.
claims that the Steel Co.'S. notification
Of its refusal to accept delivery Of the
coal rendered is a breach Of contract.
The Coal Co. has accordingly notified
the Steel Co. that the contract is at an
end. This announcement is interpreted
to mean that the prospects for an ami
cable settlement are extremely poor.
and that a protracted legal battle in
the courts is pending.
Business men in Sydney and else
where are greatly alarmed on account
of the situation as they fear that thou
sands Of men employed by the st eel Co.
will be idle for some time and that
the lessening of the output of the coal
mines which will undoubtedly follow
the abrcgation of the contract will
throw out many of the miners. The
president of the Steel Co. declares that
the action of the other concern amounts
to an effort to crush the Steel Co. In
business circles. however. the opinion
prevails that the Coal Co. was not
making a profit on the contract.
The officials Of the Coal Co. Saturday
challenged the other concerns to sub
nit the coal complained Of to an indie
pendent examination by committee of
four managers of other coal properties.
The president of the Dominion Coal
CO., James Ross. offered to deposit $50
600 if any director of the Steel Co. will
put up like amount, the deposit of
the company against whom the decis-
ion was given to be divided between
two hospitals in Sydney and Glace Bay.
The common stock of the Dominion
Iron and Steel Co. has declined from
81 to "a. The steel. concern uses about
1000. 900 tons of coal annually and it
declares that suit will be brought for
the difference between the price agreed
upon by the Dominion, Coal Co. contract
and the price of the c6al which has been
ordered from other mining concerns.
The combined Capitalization of the
two big corporations in stocks and
bonds is over O,s00, 900. The Coal Co.
employs 10000 men. some of whom have
already been laid off on account Of the
expected reduction in the output Of the
mines.