Norwich bulletin., 1920-11-20

oh the basis of subsidies granted in one | form or ahothsr by the parent railroad | company. This was made possible by q 1 bookkeeping system which male the fin | anees of the coal company aild the rail road company practically oiie The parent railroads carried the bonds, made good losses, granted working capital and in other ways assisted the coal com companies financially either at low rates of interest or without charges.
 Seventh The co-ordinatfon of the various companies which composed each
 one Of these anthracite systems is con clnsfYely demonstrated by the all-per- suasive treatment of profit policy from a single standpolnt. The railroad coal companies practically without exception before, the wal failed to make a profit. 1 the pfofits q the industry have appeal CT almost altogether in the dividends re- serves and bond interest of the seven anthracite railroads-recedtly v in div 1 idends of certain coal sales companies whose stock is owned by the stockholders of the railroads.
 'iEighth. The history of the the larg- est companies in the anthracite industry i is marked by financing methods which have resulted in heavy oFer-capitaliza-
 tien, which affords basis for high prices S- 1 "Nirth. The combination of exces- stve transportation rates with the con
 sequent coal company losses has fur nished apparent Justification for high prices and low wages. It has amounted
 to a process Of writing the losses of the coal companies into the cost of trans portation, thus 3ustifying high prices to the consumer. In this connection it should De pointed out that the enormous imitation of capital and bonds through 1f 11-e
 by the railroads and through payment
 of inflated prices for coal lands has re-
 suited iii enormous fixed charges, which
 enter into the cost of anthracite trans
 portation because interest on bonds is
 treated as cost and not at profit.
 Tenth. The resulting high rates have enabled the anthracite railroads to pay ! dividends far above those of the other
 railroads far above those of the other
 railroads in the country.
 l Eleventh. The process just described !. from which these high profits have result
 ed in such that 1t is well concealed from the public and difficult to reach; for these methods have enabled the anthra- | cite corporations to show margins be-
 tween the cost of producing anthracit and the price at which 1t is sold at the mine, between the cost of transportinr : anthracite and the rate charged by the rEilroad and between the total cost of the : anthracite. before it is delivered to the l dealer and the price at which it is de-
 liyered to him, which to all outward ap. 1 pearances no more than average.
 2 Twelfth. The anthracite industry made up of these seven distinct railway e systems is closely knitted into single 2 great monopoly By interstock ownership l by interlocking directorates, by informa conferences. q in general by the Al : crossing control of a New York bankin;
 group. This group dominates companie ! shipping over 75 per cent. of the tota : anthracite tonnage.
 i Thirteenth. As a result of the cola : bination which Ns been achieved, VI I must look for anthracite profits. not il v the cofters of the coal companies but il l Gal the profits of anthracite railroads = tb) the profits of sales companies: (c
 the profits of those who control the bank : ing combination which has engineered tn e anthracite Combination.
 - ''T%s above facts, although excluded b. y the chairman and the operators repre- - sentative on the anthracite wage commfs i! sion" Mir Lauck said. i've have so fa - Ibeen upchallenged. It IS the min : workers earnest desire and 1t should b
 the earnest desire of ever consumer o l anthracite that these facts be investigat n ed and made known, Certainly the op e erators can have no ohisction 70 a com . plete investigation of the industry whicl 1 is now under cloud of suspicion"