The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-04
CHARGES AVARICEM
HUGE COAL COMBINE
Senator vardaman Says Eight
Transportation Companies
Control Anthracite.
FIX PRICES AND OUTPUT
Federal Action Urged II Penn
sylvania Refuses to En-
force State Law.

WAbHINuTONs mhrCn o. cohhSot
vardaman (MississippD. chairman OF
the Senate Manufactures Committee,
inserted to-day In the Congressional
Record statement on the commlttee's
investigation Of the anthracite situation,
charging that production OF anthracite
In the United States 10 controlled by
eight large transportation companies,
which through an almost complete
monopoly were able to Ak prices and
determine tho rate OF production.
Chairman vardaman explained that
the committee was unable 20 present Its
report at this time, as not all the testi-
mony taken In hearings in Washington
and In the Pennsylvania coal fields had
been printed. He added. however, that
he had gathered certain facts" which
he trusted would be OF help to the next
Congress In dealing with the anthracite
question.
Testimony before the committee, he
asserted in his statement, had disclosed
in his opinion that there 10 no COM
modify In common use that Is SO alb
solutely monopoized az the anthracite
coal production" Shortage Of anthra-
cite during the war and the existing
high prices for the commodity, he said,
were due almost entirely to this monopo-
listic control.
Names the Eight Companies.
Transportation corporations control
ling production in the Pennsylvania field
the only source Of marketable anthracite
In North America-were named in Sen-
ator Vardaman's statement. as follows
The Reading tthe holding COM
pany OF the Philadelphia and Read
ing Coal and Iron Company and the
Jersey Central, which In turn owns
all the stock Of the Lehigh and
Wilkesbarre company: the Lehigh
Valley, the Delaware. Lackawanna
and Western. the Delaware and Hud-
son. the Lehigh Coal and Naviga-
ton Company (Which owns and con-
trolls the Lehigh and New England).
the Erie and the New York. Ontario
and Western"
Although controlling only ~ per cent
OF the actual production OF anthracite
the statement asserted the eight COM
panies had made II impossible for indie.
pendent operators to compete with them
on any fair basis.
Notwithstanding the fact" said the
statement, that the constitution OF
Pennsylvania prohibls a transportatio
company from engaging In mining these
transportation comps MES are in this
business OF not only Transporting this
coal but OF mining IT,"
Asks Federal Action.
Expressing the hope that Congress.
might see the necessity VI legislation "a
protect the people OF the United States
frnv, xvh
cupidity and avarice OF these soulless
corporations the Mississippi Senator
recommended that "if the constitution OF
Pennsylvania. which forbids the trans
portation companies TO mine coal. is a
dead letter in that State" the Federal
Government. under the interstate com.
merce clause OF the nations Constitution
| compel the enforcement OF transporta.
| ton companies from mining corpora
lions.
The statement made the sdditiona
| Recommendation that the price OF Goa
be fixed by the Government at a rate
which would guarantee a fair return tc
the mining companies and which woult
! 'vouchsafe to the people Of America al
| ample supply of anthracite at reason
| able price"
While payment of excessive royalt!e.
Locust Mountain Coal Company to tn,
G!rard estate to s1o4 ton In 1913
| constituted the first cause OF the higf
price OF coal, the statement said tina
was mot the full story"
How Competition Is Blocked.
Tho other causes given were tn,
means alleged to have been used by tn,
eight large companies to eliminate tn,
competition of the independent opera
| tor. The statement said the companies
were able to do this In the following
ways:
High demurrage charges on cars a.
| tidewater awaiting accumulation OF
| cargo lot.
Inability of the independent operate,
to accumulate temporary SURPRISES II
bins and storage yards. the railroad
producing companies having denied tn,
independent operators the use OF theil
facilities, and
| The dog In the manger attitude" o
the eight corporations. which IL wa
charged continually reach out and OBJ
tain all available unmined coal and pre-
vent the independent operator from Sc
| curing new land. Much OF this land
the statement said. Is retained In an un
developed state by the corporations.
| The statement also said millions o
tons Of coal could have been obtainet
| to relieve the recent shortage had tn
| Fuel Administration compelled trans
portation companies to develop culn
banks or turn over this accumulation o
small sized coal TO many independen
concerns willing TO reclaim it
| The large corporations also wer
charged by Senator VardaInan will
| maintaining the sale price OF Goa
through publication of circular prices
These prices, the statement said. wer
! put out by the Reading Company an,