Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1913-03-13
LIMITED TERRITORY MAKES IT
EASY TO MA|NTA THE CONTROL
Coal for Locomotives is Bought at Below Cost and
the Public is Charged More to Make Up Difference
--ReCent Raise in Price Did Not Effect Companies

Substantially all of the rnmlned anthracite coal in
the United States is contained in small area consist
ing of about 496 square miles in the northeastern part
the State Pennsylvania in three localities known
respectively as the Wyoming" "Lehigh" and Schuy-
kill' districts. The principal cities in the wyoming
district Scranton and Wilkes-Barre Hazelton is
situated at about the center of the "Lehigh district
Pottsville Shamokin and Shenandoah mark with rea-
sonable defniteness. the limits of the "schuylkin
district.
is the Lehgh Valley railroad 1t is true that there
other from these districts to this city, but
coal does not by them rule Taking
the important collieries into consideration t1e
average distance to Perth Amboy from the three re-
"Lehigh." 1876 miles; "schuylkil' 169 miles. Traffic
moving from the "schuylk district originates at only
few coeries. Therefore. the distance rates and
routes from this district unimportant, as far SIS
Perth Amboy Is concerned.
1t is thus that practically all of the coal shipped
to Perth Amboy the Lehgh Valley railroad
and mainly from the "Lehgh" district which as has
been shown is the nearest by thirty miles
1t Is q matter of common knowledge that each one
the anthracite coal carrying roads maintains and
operates large and numerous coal mines through the
medium OF fence" coal company which, a a rule,
bears the name Of the parent railroad company. The
typical relation between anthracite coal road and
it's coal COMPANY is as follows: The railroad owns all
of the stock and bonds The railroad large creditor
The railroad prescribes authorizes and directs the
directorate 1t is matter OF common knowledge thaf
by delay, device and subterfuge each of the an
thrace coal roads has made 1t exceedingly difcut FOR
mine to be operated profably in the district served
by such carrier, other than those mines belonging sub
nomine coal company to such carrier And 1t Is also
matter of common knowledge that where an anthra-
by another company than its own such operation has
usually been the bases of 65 cent. contract
Operator receives from the railroad coal company
per of tidewater price, which form of contract
was the Supreme Court of the United States
on December 16 1912, to be Illegal.
The coal producing company nurtured, fostered
controlled and dominated by railroad assures to that
railroad friendly traffic. large in amount and exceed
ingly profitable.
There are of course Isolated and fnfrequent cases
where an independent operator may receive more or
less than the circular price Of the railroad coal
pany For example, unusual conditions, artihcially
maintained, prevailed during the early part of the
winter SO that of the independents charged
than the circular price.
Whether the circular prices charged are or are not
exorbtant may may not be problematical, depend
ing upon the view point It Is certain that not all
parties buy at the price. For example, during
the year ending June 80, 1911. the Philadelphia and
Reading Coal and Iron Company purchased 82S,666
tons of anthracite coal price ton OF
$3.50. While the annual report OF that company for
the 1911 does not characterize the grade OF coal
purchased nevertheless s230 per ton Is considerable
lower than that charged to the local dealer by the
Philadelphia and Reading Coal and Iron Company.
The 65 per cent. contract referred to, which, as
already said, has been declared illegal by the United
States Supreme Court brings out the interesting fact
that Independent operators are able to mine coal and
sell 1t profit for 65 per cent. less than the COM
panes controlled by the railroads sell It, 1t follows