Year: 1873

pprstnrNr GOwEN DEFINES THE POLICY OF


THE READING COAL COMPANY-Ifs PuEfoob


IN ENTERING THE RETAIL TRADE.


TO the Editor OF The Tribune.


SIR: This morning, for the first tlme' my
attention mas been called To a communication in your
isspe Of the 9th inst dated Philadelphia jan g. and
headed The Coal Supply" In this communication IL
IL stated that the Reading Coal ana Iron Company de-
string 10 control coal trade Of the region nave pro
posed TO the owners OF colIieries producing 32i2oo
tuns to Join with them aud receive certain sum per
tn for their coal that upon the refusal of this PROPOSE
ton the Company threatens to them by raising
the cost of transportation and Offering numerous yexa
tious obstacles &C.. and that this movement Ia only
mart Of greater combination with other large coinpa
MES which is control the trade and eoerce every col
Iery owner in the State to come 70 their terms VIII
Won please state for the benefit your readers who may
have msled by the article referred to- that there Is
not one word OF truth n any Of its statements Inc
Philadelphia and Reading Coal and Iron Company has
never attempted control the entire trade Of the region
1t never made any proposition to the coliery owners
such as stated In the letter 1t threatened 10 CO.
cree them by raising tolls on the railroad, or never
offered any obstacles vexatious or otherwise to the
and fullest exercise OF the rights OF individual op
orators.


The success Of the Philadelphia and Reading Railroad
Company in the past is due TO, and for the future Will
depend upon, its encouragement OF individual enter
prise and so long as the present management ia In
power nothing whatever will be done to prevent active
competition among the individual operators, nearly all
of whom tenants whose success in business
adds prosperity and whose failure woud lhure 10
our loss. In order TO aid these individual colhery-
owners in our region, we have insisted upon redue
ton OF the high charges OF the mddemen and factors
who controlled the outlet OF the product 10 be shipped
and have agreed do the business for about one
third OF the charges heretofore made-a proportion
which has been gladly accepted by many OF the cOery
owners to whom it addressed-and rejected by
others who preferred selling their product them
selves all Of those rejecting the proposition will be pro
tected the fullest extent In the enjoyment OF ther
proper proportion Of all the facilities of the Company
which are necessary the Of their business.


In consequence OF combination, ring or syndicate Tor
whatever the modern term for association to raise
prices may bel among the retail coal dealers the citizens
Of Philadelphia have been for many years paying from
g. s. per for their coa than the price at the
mines aud the cost OF transportation to Philadelphia
amounted to- Coal has been selling at retail in Phade
pha at from 81 to s. per tun the entire COST dev
the yard OF the retailer from - 50 to 50 IL
per tun The consequence was that While the owner Oh
the collery got but small price for his coal at the
mmes and the miners and laborers who produced 1t
were paid upon basis by which their wages were regu
lated by that low price, the had to pay an
enormous for his coal ana small manufacturing es-
Establishments felt the discrimination against them very
seriously Finding II impossible TO break up this eomb
nation in any other way the Company has opened large
retail yards and is selling coal at from 81 so tos2 per tun
less than price previously charged although the rate
obtained by the Company affords some profit over and
above the wholesale price Of coal at the mines, the
freight charged for it's and the cost Of handling
it in the yards


The great aim of the Company has been TO protect the
three classes of people who most deserving viz
OF the coiery whose capital is invested in
precarious business miners and laborers, whose toll
produces the coal and whose wages depend upon it's
price; and the public who consume it for fuel. BY
bringing the producer into direct communication with
the consumer the intermediate profits will be saved,
and no one injured except the middemen who have not


dollar invested in mining coal and whose complaints
are echoed in the Communication TO which / have re-
ferred. Very respectfully,


FRANKLIN b. GowES. President.


PhRadelphia and Reading Railroad Company, Phiid-
delphiG Jan. IA. 1873.