Evening star., 1909-03-07
Speculation Over Coal Lands.

as consequence or business depression
and lower tariff protection.
Speculation Over Coal Lands.
There also comes up as a topic of
active current debate speculation as to
what the anthracite coal roads will do
with their coal lands in the event of a
decision Of the Supreme Court upliolding
the validity of the commodity clauses
Of the Hepburn bill. This latter action
by the court Is looked forward to as
near-certain development of the next
few days or weeks. Court decisions
everywhere seem to foreshadow such ac-
ton. The general belief is that. no mat
ter which way the decision is. the result
will be beneficial to prices after the first
excitement Is over. Ii the law Is upheld
in whole or in its main features then
the coal roads will have to find way
to get rid of their lands.
Tho feeling obtains that a plan will be
decided upon somewhat along the lines
adopted by James J. Hill in the iron ore
matter: namely. distribution to stock
holders of the several corporations of GER
ttficates representing the lands. These
certificates would have no named valua-
tton and would become marketable sep
arately from the stocks of the divorced
companies. The plan has worked all
right in case of Mr.. Hills roads The
iron ore certificates have Il recognized
market standing and are slowly going
into bank loans as collateral. The two
cases are not exactly on all fours, how
ever The Hill iron lands were leased to
the steel trust on terms that insured div
idends.
1t is not clear how any similar arrange
ment can be made with regard to the
coal lands, and apparently coal certifi
Gates would have to stand on their own
merits as to earning capacity. That
would render their future more problem
atical. The breakup of the anthracite
coal monopoly might release from inertia
large tracts Of anthracite coal lands in
Pennsylvania which are still held inde-
Dendently of the trust and which might
be very easily sprung into active compe-
tition with the mines already operated
by the trust Such course would tend
to reduce the price Of coal, the wages of
mine workers and the earnings of the
properties. That is something, however.
that will have to be thrashed out later
on. For the moment the ruling opinion
ment Of the anthracite controversy will
furnish motive for buying the stocks
of all companies concerned.
New Iron and Steel Business.
In spite of widely expressed skepticism
on the subject, the open market for iron
and steel products is resulting in a large
amount of new business in every direc-
ton. OF this new business. the independ-
ents are getting by far the smallest part.
Selling agents of the big steel trust who
We're set out to get everything in sight.
regardless Of price, are complying with
instructions in the fullest sense. They
are getting the business all right and
the independents are already beginning to
show signs of distress. Everything was
lovely SO long as the trust let them have
their own way and cut prices at pleasure.
but now with the giant aroused to ac-
ton the complexion of affairs is different
Reports are already in circulation, having
most excellent origin, that many of the
independents are getting ready to bow
to the yoke and admit that they have
been naughty, coupling such proof of
humility with promises to be good here
after.
The trust, however, is not likely to be
in too great hurry to extend the hand of
forgiveness. 1t was sorely tried and it's
good nature imposed upon. It's position as
umbrella holder over trade brought it
into open ridcule and the policy 1t stood
for was being attacked as against eco
nomic laws and the public good. 1t was
being assailed from every quarter as
being the arch conspirator and mainstay
in combination for holding up prices
artticially in face of a general tendency
downward. Finding its attitude uncom-
Portable the trust is apparently willing
to let there be a full test of the opposite
policy of cutting and slicing for its own
account and incidentally also for the
wholesale disciplining of the independents.
That the final result of the trade war
will be a new alignment and a combina-
ton OF all large manufacturers on basis
which will make violations thereof very
unhealthy for those engaging in the prac-
tice There are very few independent
manufacturers who can survive a pro-
longed fight with the trust. Some of
them are very strong, it is true. and have
abundant financial backing, but there is
hardly a point along the line of produc-
ton at which they are not at a distinct
disadvantage as against the trust The
trust, by reason of its ownership of raw
materials, railroads and steamships and
also by reason of it's superb selling organ
ization and unlimited working capital
can beat competition both in production
and distribution. But for the strong be-
lief that the war will soon end I'm a gen
eral trade understanding 1t would be inn
possible to hold the price of the stocks