Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-28
Proposed Investigation of the
Anthracite Industry.
RELATION TO LIVING COST
Cause of the High Price of Fuel to
Be Determined.
EXCESSIVE FREIGHTS ALLEGED
Pennsylvania Legislature Consider
ing Resolution Introduced for
Sweeping Inquiry.

HARRISBURG. Pa, March 2S.-A
sweeping legislative investigation of the
anthracite coal industry in Pennsylvania
is proposed in a concurrent resolution in
PRODUCED today in the general assembly,
which has in view the enactment of laws
for the protection Of the public and the
reduction of the cost Of coal.
AS an indication that the proposed in
vestigation will be thorough the COM
mittee is empowered to inquire into the
relations between mining and transporta-
ton companies and the great banking
houses which are said to be closely az
fliated with them, and which usually
conduct their financial operations.
The resolution, which is understood to
have the approval of the republican lead
ers, gives the committee power to In
vestigate the matter of freight rates, 1t
rates for anthracite are much higher
than those for bituninous coal.
Text Of the Resolution.
The resolution. which calls for a com
mittce of seven, was presented in the
Senate by Samuel Salus, republican, OF
Philadelphia
The preamble recites that
Whereas the high cost of living in the
cities and in those\portions Of the COM
monwealth removed from the anthracite
coal mines is In a large degree due to the
high price Of fuel used for domestic and
other purposes, and
Whereas. it is a matter of common
knowledge that a large part OF the ex-
orbitant cost of anthracite coal to the
public is due to the excessive freight
transportation charges. which are much
higher than rates charged for the trans
@S1I
of proportion to the length of the haul
and the service rendered by the carriers
of said anthracite coal, and
Whereas it is reported that further ad-
vances in the price to be charged the
people for anthracite coal are contem-
plated, and
Whereas it Is further reported that the
excessive freight and other charges mace
for the transportation and handling OF
anthracite coal are in part at least due
to large fees and commissions paid by the
transportation companies to private and
other bankers for the negotiation of the
sale Of the securities of said transporta-
ton companies and for loans OF money
fees, commissions and other charges paid
to brokers. commission agents, sales
agents. factors and middlemen, all OF
which are added to and go to increase
the cost Of the transportation and de-
livery to the public Of anthracite coal for
Actual Cost of Mining.
In view Of this alleged condition the
committee Of investigation is directed
to particularly inquire into the actual
cost of the mining and transportation
of anthracite coal throughout the
commonwealth and the proportions OF
which costs are paid to labor in the
mining and transportation Of said an
tracite coal. with a view of determin-
ing whether the rates charged for the
transportation Of said anthracite coal
are excessive as compared with the
rates charged for the transportation
of other coal and commodities Of a
similar nature for equal dis
tances. and in connection with
this investigation to inquire into the
costs of operation and management
Of common carriers engaged in the
transportation Of anthracite coal and
Of the cost Of the mining thereof. witt
view of determining whether the
cost Of anthracite coal to the consumer
Is in any measure due to usuriOus fees
and commissions paid by Transporter
ton companies to private and other
bankers who are in the directorate or
are closely affiliated with such trans
portation companies for the negotia-
ton Of the securities Of said companies
and for loans of money thereto
and to excessive fees. commissions and
other charges paid by transportation and
mining companies to brokers, commission
agents. sales agents, factors and middle
men,"
Also to further inquire into the rela-
ton of the private and other bankers,
brokers' factors and agents who are In
the directorate of the anthracite coal
carrying transportation companies to the
mining and sale of ant scite coal, the
commissions exacted and paid for
the negotiation OF securities and
for loans of money and upon
the sales of coal. the cost of mining, the
wages paid labor, and all other charges
entering into the price paid for anthracite
coal by the consumer with a view of de-
termining whether or not the cost to the
public of anthracite coal for domestic and
other purposes is reasonable and justified
by existing conditions"
The committee is directed to sit during
the recess and to report to the 1913 legis-
lature, $4,000 being appropriated for ex-
penses.