The Dominion. THURSDAY, OCTOBER 3, 1907. THE COAL COMBINE.

Dominion, Volume 1, Issue 7, 3 October 1907, Page 6

The Dominion. THURSDAY, OCTOBER 3, 1907. THE COAL COMBINE.

The Commonwealth Legislature is devoting a good deal of attention to the .operations of' the Newcastle Colliery owners, who have entered into a combination which, it is alleged, has developed, .or will develop, into a monopoly injurious to the public welfare. The columns of the Australian Press are daily filled with opinions for and against the vend, as the combination is styled, and the .statements made are so conflicting that it is extremely difficult to arrive at a true estimate of the merits of the situation. Certain facts, however, stand out undisputed. It is admitted that this combination of the northern colliery owners was formed about a year ago, and that the results have been most satisfactory to the owners. It is also conceded that despite the combination the price of coal, which was fixed a I ten shillings per ton twelve months ago has not been admonths ago, has not been adcf meeting thf increased demand might have warranted an increase in price. On the other hand, it is asserted that the combine has refused to supply certain buyers, including a New Zealand firm, which desired to transport its coal to the Dominion in a vessel outside the shipping ring, said to be associated with tho coal vend. These sire the bare facts. The reason advanced by the vend for refusing; to supply the .partcular vessel the Ennerdale, is that it must first meet the demands of the shipping companies with which it has long standing contracts, and that at the present time it is keeping these companies waiting owing to tlie shortage of the supply due to excessive foreign demands. The other side of the story is that the Ennerdale was refused cargo because it was outside the combine.

Iu the discussions which have taken place in the Federal Legislature, and in the views expressed through the medium of the Press, there has been a remarkable conflict of opinion as to the elfect of the creation of the vend. It might reasonably be expected that, in a matter so vitally affecting the interests of all classes of the community as the regulation of the prige of coal, the Labour party, which forms so strong a feature of Australian politics, would be found strenuously opposing any combination in the interests of Capital. But singularly enough, in this instance, Capital and Labour are found in the one camp, and amongst the strongest supporters of the combine are Labour members and the colliery unions of employees. The reason for this curious situation, however, is not far to seek'. Lndev the existing agreement the wages of the miners increase in proportion to the advance in the price of coal, and the formation of the vend is certain, in the end, to raise the price of coal. Already it has been intimated that an increase in price is imminent, and to-day's cable messages state that the colliery owners are now meeting to consider the question. It is worthy of note that last year the Commonwealth Parliament passed an Anti-Trust- Act, which was regarded, at tho time, as being very drastic in its provisions, and as recently as last week Sir William Lyne said there was power under the Act to deal with such a combine as the coal vend. But there appears to be doubt on the point. When the Bill was before the Federal Legislature, Mr. Isaacs, now Mr. Justice Isaacs, stated that if such vends were to maintain a fair and equitable price—such as a business would honestly -bear—there would be no offence, but if the effect was to advance prices beyond tho equitable rate, or shut out competition, or bring down wages, or otherwise to control affairs so as to put trade at its mercy, it would be an illegal combiuc, and one that could be taken to tho courts. So far the difficulty appears to have been to adduce sufficient evidence to support any_ such charges. Wages have increased, and the price of coal has not been advanced beyond a reasonable rate. At the same time it is quite • evident that the situation is far from satisfactory. To-day we

are informed that Mr. Deakin lias intimated iiis intention to introduce legislation to amend t.lie Anti-Trust Act in the direction of giving the Government further powers to deal with trusts and combines, and it is plain that the affairs of the coal vend are to be subjected to further scrutiny. The matter is one of such wide public concern that despite the excellent case made out by the colliery owners full investigation is eminently desirable.