Standard Oil Company; Trusts, Industrial -- United States
Though coal is an article of commerce greater in volume than any other
natural product in the United States carried on railroads, amounting to
not less than 130,000,000 tons a year; and though the appliances for
its transportation have been improved, and the cost cheapened every
year, so that it can be handled with less cost and risk than almost any
other class of freight, the startling fact appears in the litigations
before the Interstate Commerce Commission and the investigations by
Congress, that anthracite freight rates have been advanced instead of
being decreased, are higher now than they were in 1879, and that coal
is made by these confederated railroads to pay rates vastly higher
than the average of all other high and low class freight, nearly
double the rate on wheat or cotton. These high freight rates serve
the double purpose of seeming to justify the high price of coal, and
of killing off year by year the independent coal-producers. What the
railroad coal-miner pays for freight returns to its other self, the
railroad. What the independent coal-producer pays goes also to the
railroad, his competitor. "This excess over just and reasonable rates
of transportation constitutes an available fund by which they (the
railroads) are enabled to crush out the competition of independent
coal-producers."[9]
By these means, as Congress found in 1888,[10] the railroad managers
have forced the independent miners to sell to them or their friends
at the price they chose to pay. They were the only possible buyers,
because only they were sure of a supply of cars, and of freight rates
at which they could live.
The private operators thus being frozen out are able, as the
investigation by the New York Legislature in 1878 showed, to produce
coal more economically than the great companies, because not burdened
with extravagant salaries, royalties, and leases, interest on
fictitious bonded debts, and dividends on false capitalization of
watered stock. By the laws of supply and demand they would compete out
the unwieldy corporations, but these administer a superior political
economy in their supply and demand of cars and freight rates. The
unfittest, economically, survives.
"The railroad companies engaged in mining and transporting coal
are practically in a combination to control the output and fix the
price.... They have a practical monopoly of the production, the
transportation, and sale of anthracite coal."[11] This has been the
finding in all the investigations for twenty years. "More than one, if
not all, of the anthracite monopolies," Congress reported in 1888, "run
several of their mines in the name of private operators to quiet the
general clamor against carrying companies having a monopoly of mining
also."
Public-domain text, read in full here on John Shaqi.
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