New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-31
COAL ROADS EXPOSE
THEIR OWN GREED
Continued from frs, page.


hauled from the Wyoming field to Perth
Amboy. while It was piling up surplus
of S27, 100000
AS matter of we'll established fact, II
costs about 60 cents ton TO haul an
thracite from the Southern field, which
is further away than the Wyoming field.
to New York Harbor whereas the rate
charged is 81 - ton from both helds.
It is this rate which the Interstate COM
merce Commission has decided in indi-
vidual cases is unfair and disCrmina-
ry-dscriminatory that is, as between
the railroad coal company and the indie.
pendent and as between the so-called in
dependent coal company which has
entered into 81 per cent contract with
railroad subsidiary and the out-and-
out independent.
Regarding these two latter contn
gencies the governments brief in the an
thracite trust suit says:
The 50 per cent contracts. 50 ralled. sup
press competition among the coal companies
Of the defendant railroads in IN" purchase
OF coal from Independent producers and IN
the sale Of coal to the public; remov" sucn
lirdeEcndent producers as competitors or
the railroad coal companies IA The sale Ct
coal TO the public and restrict their output
II the VIII Of the latter; prevent cumpei-
ton for the transportation of the hide
pcndent output. either among the defend
ant railroads or BY any new railroad that
might b constructed end by operating TO
give a preferential freight rate prevent the
independent output not so, 20 the rail-
road companies from gettina t. the leading
market on equal terms with that which is;
all in violation Of Sections and Of the
antitrust act
Virtually Rebates.
Tho - por cent contracts virtually
amounted ~ rebates OF from % cents TO so
cents q ton when the railroads first offered
% enter into them with the independent
coal companies. That was in the fall Of
1900. when tho price Of domestic sizes of
anthracite was appreciably less than it is
to-day Then the independents. by selling
their output al their breakers 10 the trust
for G. per cent OF its price In New York
Harbor, actually got from 20 cents to 50
cents ton more for their coal than II
they had shipped it themselves and paid
the published freigh. rates.
Writing in 1910. however counsel for tn"
government SAID.
While I'm consequence ~ the higher prices
received the railroad companies purchasing
coal under the S. per cent contracts realize
TODAY on some sizes in some months OF
the wear from the resale Of such pur-
chased coal AZ New York HaTbor enough
to pay tho published freight rate. there IS
still deficit on some sizes In all months
and on all principal sizes ia To" months
Of April to August. inclusive.
All independents entering into these con-
tracts to sell their coal TO the trust for 50
per cent Of its New York market price hav"
had TO agree that the contracts shall run
Tor the lives Of tho mines They have had
to agree. also TO Turn over their entire
product This j. the price thcy must laN
for the rebate. Tire trust thereby gaining
permanent control or its tcotlc rivals out
put
The total output Of all Independent op"ra-
tors IN 1901 Was Is s751&5 tons. Subtractlng
asl a56 tons mined b. g. q Narklo 4 %.
but marketed By tho Lenish VALLEY coal
Cornpsny. under /. lors-tern contract. 49,
| IS tons mined hv the Kingston coal com
pany. but really belonging 70 INC Delaware,
! Lsckawanns & Western Railroad com
rsny. and la6h02s ton. purchased Nv rail
roads and railroad coal companies not in
cluded in the trust there remained lS,Jo1,%h
} 'gilE n VulHll VI lNt ''iitiifN 'V'fA''
br tho IS per cent contracts With the coal
/ departments or subsidiary companies ~
the trust railroads wae In this year s o0e. i32
tons. or nearly half Of this.
So practically a half of The independents
get rebates for selling ont 80 tho trust end
| the other half have "a pay the published
rates and get less money for their coal TIL"
Interstate Commerce Commission. ~ al"
| Marian Coal COMPANY snd similar cases. IS
remedying this condition pieccWoal tn"
| railroads themselves are remedyirg ~ hy
| boosting the pric" ~ domestir anthracite.
ana lust here Is where the Joke on the IN
dependents having e. por cent contracts
| comes in
As tho price Of dcm.stic anthracite climbs
the money saved b. ths Independents iu
| selling their product N the trust Tor ~ per
cent 81 its market value grows less lu
jung. 1907 for example. chestnut anthracite
sold here for 81 70 q ton Sixty-hye per cent
Of s. 20 is s. o. Add 10 this tho freight rate
60 tho lower ports Of New York Harbor Of
81 - ana the expense Of selling. which 10
!, cents \ ron. and TIC Hsstage, amount
ing 10 ; cents . ton. and the total is 81 50
The Independent saved by his contract in
| that month, therefore. 10 cents q ton
But IN June. lH2 owing to the two srb-
trary advances In the price OF chestnut
that size will sell in the New York market
for g ~ a ton. SiXtN-hvo per cent II s. %
IL SO s. Add to this ~ cents cor selling
| and wastage and the freight rate Of 81 80
and the sum is g. 10. IN other words the in
| dependent loses cents as a result of his T.,
per cent contract
Under the terms Or that contract. how
ever. he Is bound 10 hand over TO the trust
his entire output for the life of his mine.
The trust VIM