T11E DAILY frvENINO TELEGRAPH PHILADELPHIA, WEDNEfeDAf, APRIL 19, 1871. THE COAL TROUBLES. Argument of Franklin B. Onwen, Esq., In Behalf of (he Kallroad ud Mining Interests ofPnnj lvnl. The following Is Mr. Oowen's argument delivered before the Pennsylvania Senate Jullclar Com tuittee on the 80th alt. : ; Gentlemen: We, who are Pennsylvanlans, hare Always been under the Impression that oar State derived great benefits from having within her bor ders the only accessible deposits of anthracite coal yet discovered In the United States. I have been taught to regard the possession of this vast mineral wealth as a great blessing; but I can assure you, that In consequence of two years of suffering under the control and mismanagement of the leaders of the Workingmen's Benevolent Association, I am almost tempted to doubt whether all this treasure upon which our Commonwealth has so largely dependod for her revenue which has given such an unexam pled Impetus to our manufactures, and has at tracted to us an aggregation of capital that has supplied employment for, and fed and clothed so large a proportion of, an Industrious laboring popu lation has not been a great evil and a great curse; and I fear that you, gentlemen, who have spent so much time In an earnest endeavor to fathom the causes of the present unfortunate condition of a fl airs In the coal regions, will be willing to agree with me in this conjecture. Our neighbors of New York derive their prospe rity from and boast of the supremacy of commerce; but when we recall to our minds how fleeting and evanescent has been the reign of commercial pros perity In all the countries of the world, and remem ber that at the beginning of this century Salem was one of the most Important ports In the United States, who can tell whether, ere the close of the century, Salem or Boston may not have regained Its supremacy, or whether the ships whose sails now whiten the bay of New York may not float upon the waters of the Delaware, or ride at anchor lathe harbor of Norfolk? But the prosperity de rived from the possession of mineral treasures Is more enduring; and In her coal fields our own great Commonwealth has control of an unfailing source Of wealth, which, if properly fostered by the State, will be far more lasting than that which depends upon the diamonds of Brazil or Is derived from the gold of California. You may be surprised to learn that the coal trafflo alone has within the past ten years paid Into the treasury of the State between five and six millions of dollars, and that, notwith standing the difficulties with which we have had to contend during the past year, the corporations for whom I now appear before you have paid as taxes to the State, in the year 1870, nearly eight hundred thousand dollars. Why Is It that our farmers have been relieved irom State taxation upon their lands, the State debt baa ceased to be a burden upon our population, and the finances of the Commonwealth are In so sound a condition? Simply because the Interests for which I appear before you which bave been strlckegdown by the unlawful combina tion of an ignorant faction, and are now struggling to be heard, In a calm judicial Investigation, against the wild clamor of the demagogue and the fanatlo have paid Into the coffers of the State so large an amount of taxes that other Interests and other in dustries have been relieved from the payment of any. Having called'your attention to the great Impor tance ot the subject under consideration, and fully conscious that the result of your deliberations may be either to rescue these great; Interests from the evils that environ them, or to consign them again to the control of a tyrannical association, I now propose (because It is necessary as part of the ar gument 1 shall make In defence of the course pur sued by the railroad companies) to give, as suc cinctly as 1 can, and with some regard to the chro nology of events, a statement of the causes which bave led the several corporations to adopt the course which has called forth ,thls investigation, and then to present a legal argument in defence of their action, together with some suggestions as to the mode of adj u sting the present difficulty and pre venting its recurrence in the future. It is well known that during the late war the de mand for coal was greatly increased. The navy required a large supply; and manufacturers who are always the great consumers were prosperous and active; coal-mining became exceedingly profit able; the coal-carrying railroads all made money: th mJ Mere nj laborers were paid nigh wages; and it was no uncommon occurrence for a good miner to earn several hundred dollars a month. In con sequence of this, a great impetus was given to the coal trade. New collieries were rapidly opened; new coal regions were brought into connection with the markets by new railroads, which were extended into every valley that contained a deposit for coal; and the high wages earned by the miner attracted from other countries a large immigration of skilled work men, and diverted to the business of mining many who left other trades and occupations to ga ther the golden harvest which was spread before them. The natural result of this was, that after peace was declared and the war demand had ceased, the productive capacity of the anthracite coal re gions was far greater than was required to supply the consumption of coal; and the laboring popula tion had increased so rapidly that employment could not be given to all. The natural remedy for this state of things would have been enforced by the law of demand and supply. The badly-constructed and ill-ventilated collieries that could not produce coal at the rate the public was willing to pay for it would have been abandoned, and the better class of collieries that could have supplied the market would bave continued at work and given em ployment to as many men as were necessary to produce the amount of coal required by the wants of the community. The surplus population that could find no employment at mining would bave gone back to other occupations, until the Increased demand for coal, resulting from low prices, would have called them again to. the coal regions. Thus a year or two of low prices would bave supplied the cure for all the evils that were felt at the close of the war. But about this time there came into prominence an orgauization which Is now known as the Workingmen's Benevolent As sociation. Embracing originally several distinct societies in the different regions, it gradually be came a united and compact organization, chartered first by the courts, and subsequently by the Legis lature; and by the year 1868 it embraced nearly the entire laboring population of the anthracite coal region. The object of this organization was to se cure employment for all of 1U members, and pre vent the reduction of wages which every other class of labor had to submit to at the close of the war. Well knowing that if all its members worked a full day during the year, the production of coal would be much greater than the demand, they insisted upon an increased rate of wages and decreased amount of work, which would euablo a man to earn in six or seven mouths as much as had previously been earned in a year, so that the entire popula tion should receive employment without increasing the supply of coal above the demand. As it was also well known to them that such wages could not be paid unless the price of coal was kept up to a high rate, they suspended work whenever the price reached such a sum as made it impossible for their employer to comply with their demands. We, who thought we understood something about the laws of trade, and knew that natural causes would soon bring relief, remonstrated with the leaders of this organization in vain. The law of supply and demand, and every sound maxim of trade which experience has demonstrated to be correct, were thrown to the winds; and from the bowels of the earth there came swarming up a new school of political economists, who professed to be able, during the leisure hours of their short work ing day, to regulate a great Industry and restore it to vigor and health. In the wildest flight of the Imagination ot the most pretentious charlatan there never was conceived such a cure for the ills with which we were atlticted as was suggested by these sew doctors. In their hands, however, we were powerless; and with the eagerness of a student, and the assurance of a quack, they seized upon the body of a healthy trade, and have bo doctored and physicked it that it is now reduced to the ghost of the shadow of an attenuation. The first dose of this new panacea was administered in the year 1868, and a general suspension of work for many weeks, resulting In advanced prices and higher wages, en couraged them to proceed with the treatment. Again, in the early part of 1809 a general suspen sion In all the regions was inaugurated, accompa nied by a demand for a rate of wages based upon the price for which coal was sold; so that as coal advanced the wages of the men were also to ad vance; but a minimum rate of wages was demanded, which was never to be lower than when coal was sold at live dollars at Klizabethport and three dol lars at Port Carbon. Wheu coal brought these prices it was possible for the coal operator to pay the minimum rate of wages without losing ruouey; but as these prices were about Ircui titty to seventy five cents a ton higher than coal could possibly be sold for when ail the regions were at work, and consequently that niucn higher than the public should be asked to pay tor it, the operators of all the regions re fused to accede to the demand. After six weeks of idleness, when It was apparent that the strike lu the Wyoming and Lehigh regions would be of long duration, the operators of Schuylkill county agreed to the terms demanded by the men, and commenced work at the three-dollar basis as a minimum. Both of the other regions being idle, the price of coal was very high at Port Carbon, and so long as the Schuylkill county operators bad the entire market to themselves they could afford to pay the wages. The publio and the miners and operators of the other regions were the only sufferers. After five months of idleness in the other regions, when the depletion of the supply bad inoreased prices to a high rate, and It was evident that Schuylkill county was taking customers away from the other districts, both the Lehigh and Wyoming regions resumed work the former upon the terms demanded by the men, and the three large companies In the latter without a basil, but at a rate of wages tar greater than had been origin ally asked. During the few weeks of the close of the season of 18G9, when all the regions were pro ducing, it became evident that the price of coal could not and ought not be sustained at such a rate as would enable the operators In all the coal fields to pay the wages which those of one could pay when the others were idle; and, accordingly, In the winter of lHti9 70, a new basis wa asked tor by the operators of Schuylkill county, which would en able them to produce coal as low as f 2 25 and 82 SO per ton. This was refused by the Workingmen's Benevolent Association, and the result was the long strike ot 1870 which kept the Schuylkill region Idle for twenty weeks. Lehigh and Wyoming con tinued at work in 1870; and In consequence of the largo amount of Schuylkill coal kept out of the market the operators of the other region realized high prices, and were able to pay the hlgn rate of wages the only sufferers being the public, as in 1869, and the operators, workmen and carrying companies of the Schuylkill region. In the latter part of July, 1870, the Workingmen's Benevolent Association agreed to a modification of their de mands; and In the Schuylkill region work was re sumed on the first of August, 1870, at what has so frequently been alluded to in the course of this Investigation as the "Qowen Compromise," which, while it adopted the same rate of wages at S3 as was paid the previous year at 83, permitted the rate to decrease in the same proportion as it ad vanced, and established the minimum at 2; so that when coal sold for $2 at Port Carbon the workmen received thirty-three per cent, less wages than when it sold for 83; and when 84 per ton at Port Carbon was realized by the operator, the workmen got an advance of thirty-three per cent, above what he was entitled to at 83. Under this new basis, work was continued in Schuylkill county during the remaining five months of 1870, and the amount of coal then sent to market, in addition to what was mined in the Lehigh and Wyoming fields, was such that prices fell to 82 25 and 82 60 per ton at Port Carbon. As this "Uowen Compromise" was only to last during the season of 1870, it became necessary to adopt some basis for 1871; and In the month of November last the regular committees of the Workingmen's Benevolent Association and operators met and agreed upon a rate of wages for 1871, which was entirely satisfactory to both par ties, and which has been called the $2 60 basis. You will remember that during the whole of 1870 the three large mining companies of the upper Wyoming region had been paying the exorbitant rate of wages which they agreed to, rather than submit to the claim for a basis. It must be evident to all of you that, at this rate of wages, the coal of these tnree companies was costing them more than they could realize for it during the months of Octo ber and November last. Accordingly, they an nounced a reduction of wages to take effect on December 1; and though this reduction was not greater than was required to make the rate about equal to what other men In adjoining collieries were working for, the men refused to submit to it, and on the first of December, 1870, they struck and quit work. I now desire to call your particular attention to the tact which is undisputed that at this time there was no difficulty whatever existing between the Workingmen's Benevolent Association and their employers, upon the question of wages, in the Schuylkill, Lehigh, or Lower Wyoming districts. In the Schuylkill region the men were working under the "Uowen Compromise," which was to continue during the year 1870, and their represen tatives had agreed with their employers in recom mending the adoption of the 82 60 basis for 1871. In the Lehigh and Lower Wyoming coal-fields no Intimation had been given by either side of an In tention to change the basis under which the men were working. Notwithstanding this, however, a general suspension was ordered by the Working men's Benevolent Association to take place on J anuary 10, 187 1; and this order was literally obeyed. The object of this suspension, as stated by the officers of the Workingmen's Benevolent Associa tion, and published in their organ, the Anthracite Monitor, was to deplete the market, reduce the supply and advance the price of coal; and there can be no doubt that It was resorted to, in the first instance, to assist the men of the three large mining companies who bad been upon a strike since the first of December, and who could not hope to hold out very long in their demand for exorbitant wages if the coal market was being supplied from other regions. I presume that the consideration to be given by these men of the three companies for this assistance was an absolute adhesion to the Work ingmen's Benevolent Association, and obedience to its demands, that no work should be done except upon the basis. The suspension, therefore, be came general In all the districts on January 10th. On the 16th of February, the General Council of the Workingmen's Benevolent Association ordered a resumption of work; but this order was accom panied by a claim in the Upper Wyoming districts lor the high wages of 1870. and in the Schuylkill region it nad been preceded by a demand for the old 83 minimum basis. These demands were not acceded to, and the suspension still continues. 1 have thus gone over two years of alternate sus pensions and strikes, by which, occasionally, the worklngmen of one region would realize exorbitant wages, but always at the expense of their suffering brethren of auother who were kept in idleness by their own actions. Out of the last twenty-two months, the worklngmen of Schuylkill and the Up per Wyoming districts have been idle for nine months and those of the Lehigh region have been idle for eight months and yet, with moderate wages and low prices for coal, they oould bave bad steady employment. Let me now ask what has been tbe effect of this control of the coal trade; so relentlessly exercised by the Workingmen's Benevolent Association dur ing tbe last two years; I mean Its e fleet upon others than themselves upon the operators, upon the rail road companies, upon the coal trade, upon the iron Interests and upon the State ? Before entering, however, upon this subject, I de sire to say a few words In behalf of the coal opera tors. 1 do not mean in behalf of the one out of the five hundred who has appeared here as the especial champion of the worklngmen, but on behalf of the remaining four hundred and ninety-nine whom the one referred to has characterized, out of bis choice vocabulary of abuse, as "lying thieves and scala wag operators." I will take Mr. Kendrlck as an ex ample, lie commenced life as a laborer in the mines, became a miner, worked for twenty years as such, was made a superintendent, saved out of bis hard earnings enough to enable him to possess a colliery of his own, and now, when well ad rancad in life, he finds the accumulated earnings of long years of toll threatened with destruction, and him self held up to ignominy and reproach, because in this free country he has bad tbe courage to resist the fierce tide of agrarianism that has threatened to reduce him to beggary, and to run riot with the property which his own patient industry and toil bave enabled bim to lay up for old age. You must remember, gentlemen, that in tbe eff ect of these suspensions upon the two classes of men, employer and employed, there is a wide diflerenoe. The miner or laborer, if be does not chose to work, can pack up bis effects and move to another locality; but the employer is bound to bis colliery, all bis property is there invested, and upon the suc cess of the enterprise depends not only his subsist ence, but that which to some men Is dearer than life itself his character for commercial integrity. The miner has no money Invested in the coal busi ness. The operator may bave two hundred thou sand dollars expended at one colliery. He iny bave notes to pay, and contracts for the delivery of coal to comply with; all of these be can meet if be is permitted to work his mines. Ills employes may be anxious to work for bim, and may be entirely satisfied with the wages; but the grasp of the Work ingmen's Benevolent Association is around their throats; the decree goes forth that there must be a f eneral suspension. The poor laborer well knows he ghastly fate in store for him if he disobeys this decree, and the result of his obedience is the ruin and dishonor of his employer. We have called many of these coal operators before you, aud they have testified to the injurious effect of their continued suspensions and strikes, and have stated that, if the present condition of affairs is not improved, they will be glad to sell their property at one half or two-thirds of its cost, and be thankful that they es cape the wreck with even that little to call their own. Let me take the Reading Kallroad Company as an illustration of the injurious eftect of the man agement of the leaders of the Workingmen's 3ene volent Association upon railroad companies. We have three hundred locomotives, twenty thousand coal cars, an extent of railroad amounting to about twelve hundred miles of single track, aud a canal one hundred aud eight miles long. We employ about twelve tuousaud men, and are fully equipped aud organized for a business of one hundred and eighty thousand tons of coal a week. When the districts which depend upon us for an outlet are all at work, they can supply us with this amount of trade. It becomes necessary for us, therefore, to be prepared to transport it; and we would not be cat lying out the deeigu of our charter if we were unaMe to do the business which was offered. This equipment and organization, therefore, must at all times be kept upj and it is almost as expensive to os when we are doing no coal business as when we are transporting 180,000 tons a week. We cannot discharge our employes, the railroad track must be constantly watched, repaired and guarded; every superintendent and agent must be at his post, and receive his salary or his wages; the only men whom we can temporarily dispense with are the coal trainbands, it is greatly to our Interest that the price of coal should be low, because low prices In crease consumption, and we make money more from a large tonnage than from high rates of charges. You can judge of the effect upon such a railroad company, when an imperative decree of the Work ingmen's Benevolent Association suddenly deprives it of all its coal tonnage; when the receipts of the road from coal trafllo are suddenly reduced from over a million of dollars per month to less than two hundred thousand dollars, while the expenses re main nearly the same; and yet to this extremity bave we been reduced time and again during tbe last two years and all because the Workingmen's Benevolent Association bave determined that the public shall never purchase their fuel at less than 3 per ton at Port Carbon or 8S per ton at Kliza bethport. Why, gentlemen, I stand here In all sin cerity, speaking for the several railroad companies that I represent, to say that, If this evil is not abated, we will be glad to bave our charters for feited and taken from us, so that our stockholders may invest their money in some other enterprise, and In some other country where the rights of pro perty are respected, and the citizen may appeal with confidence to the protection of the law. I trust I may not be misapprehended. I speak the langnage of sober truth when I say that If this state of society is continued for six months longer we will come before you as petitioners, asking you to Invoke the assistance of the courts, so that we may be permitted to surrender our charters, and obtain for our stock and bondholders the money they bave invested. Then let the Workingmen's Benevolent Association take charge of our roads in name, as they have done in fact. Better, far better for us all, that this should come to pass, than that we should contmuethe farce of pretending to con trol our own property, while the baleful Influence of this organization is brooding like a dark shadow over the land. Let me now call your attention to the coal trade Itself, and show you bow injuriously it has been aflected by the Insane action of the leaders of tbe worklngmen. You know that anthracite coal enters into competition with bituminous coal and with wood as fuel. Whenever anthracite can be intro duced at a moderate price, it displaces both of the other fuels for domestlo purposes, and Is generally preferred to bituminous for steam and for many manufacturing purposes. But it is not only mode rate rates of price, but certainty and regularity of supply, that are necessary to enable it to main tain its position. Even at a lower rate, many manu facturers will discard anthracite and use bitum inous coal, If the supply of the former is constantly interrnpted, and the latter can at all times be ob tained. I think I speak within bounds when I say that there are consumers now burning bituminous coal at the rate of 160,000 tons per month.who have been driven to it by the high prices and irregularity of supply of anthracite caused by the repeated strikes and suspensions of tbe last two years. If you go into the steeple of Independence Hall, and look out over tbe city of Philadelphia, you will see tbe thick black cloud of smoke of bituminous coal riBlng from the stacks of many manufactories at which nothing but anthracite had ever before been burned; and If you go to the bay of New York, and look over the shipping congregated there, you will see that hundreds of ferry-boats, steamboats and steamships, which formerly burned anthracite, are now using bituminous coal. It is no exaggeration to say that in the year 1871 there will be burned at least 2,000,000 of tons loss of an thracite coal than would have been consumed had It not been for the criminal folly of the managers and leaders of the Workingmen's Benevolent As sociation. So much for the coal trade. Now let us look at the iron trade. Within the next few years the ques tion is to be decided, whether the State of Pennsyl vania is to maintain her supremacy in the iron trade; whether the valleys of the Lehigh and Schuylkill are to be tbe sites of furnaces and rolling-mills; or whether the manufacture of Iron is to be moved to the southern states to Kentucky, to Tennessee and Alabama where vast deposits of iron ore bave lately been brought to notice. I know of many instances where some of our largest iron manufacturers bave invested large amounts of money in tbe iron districts of the south. If coal can be obtained at Port Carbon at from 82 23 to 82 60, and at Mauch Chunk at from 82 76 to 83, there can be no doubt that the valleys of the Schuyl kill and the Lehigh will continue to be the great centres for the manufacture of iron. But if the policy of the Workingmen's Benevolent Association is to be enforced if coal is to be kept at titty cents a ton higher than it should be, and the regularity of the supply be constantly interrupted by strikes and suspensions there can be no doubt that Pennsylva nia will have to bid farewell to its great iron manu factures, aud be content to see otber States that are free from the tyrannical rule of trade unions pros per in an industry which, by proper care, she could bave retained forever for herself. A very experienced iron manufacturer lately stated that the Fnglish iron trade required no better protection for its products in America than has been afforded by tbe active co-operation of the Workingmen's Benevolent Association in Pennsylvania; and with in the last sixty days it is believed that more orders for Scotch pig iron bave left the United States, than under other circumstances would bave been sent in a year. Upon the general prosperity of the State, the re sults of the course which I have been condemning are but too apparent. Since the 1st of January we bave fallen behind last year's trade to the extent of about one and a half millions of tons of coal. Of this, two-thirds would bave gone beyond the State if it had beon mined, and would bave been worth, at the State line, at least four dollars a ton; so that four millions ot dollars, which in the space of three months would have been sent Into the Com monwealth by foreign consumers of our products, are now lost forever. But let me call your attention to the effects of this association upon its own members. 1 speak now in behalf of tbe rights of labor, not of the rights of the sleek, well-fed and well-dressed leaders of the or ganization that you see around us here, but of the thirty thousand suffering men who are anxiously awaiting tbe decree of their society to know whether they have a right to make use of their hands to labor tor tbe support of thelMamllies. Canital has its rights property is entitled to the protection of tbe law; but higher and dearer than tbe rights of capital, or the claims of property, Is the right of tne laooring man conuemneu to earn nis Dread by the sweat ot his brow to make use of the strength which Uod has given bim, without hindrance or molestation from any one. But do these men nos- scss this right, or, rather, dare they exercise it? Is it not a notorious fact, that the decrees of a tribu nal called the General council of the Worklnirmen's Benevolent Association have condemned to idleness thousands of men who were entirely satisfied with their wages, and who would now gladly return to work if they felt certain that the State to which they owe allegiance had the power to protect them from outrage? Will the leaders of the Workingmen's Benevolent Association agree that the question of resuming work at the 82 50 basis may be submitted directly to the men, to be voted upon by secret ballot? If they will, I can venture to predict that eight out of ten would gladly em. brace the opportunity of going to work. In all the history of the coal trade. I do not believe there have ever been two such disastrous years to the laboring classes as bave been the last two under the domina tion of their society. 1 think 1 have shown how in juriously this organization has affected the best in terests of the State; but it has affected no one as injuriously as its own members. Think of an or gauization, entered into for the purpose of mutual protection, being so perverted aud mismanaged as almost to reduce its members to starvation! They ask for work: it has permitted them to work in Schuylkill county but five months out of the past twelve. They want steady wages and regular em ployment, and when they have both it compels them to stop, in order that the men of some other region may be assisted in a strike and brought un der tbe control of the society. They pay their dues to the association under the belief that It will shield them from distress: it barely permits them to work long enough to earn money to pay the dues that bave accumulated during their Idleness. They have asked for bread: it has given them a stone. Let me stop here to inquire what this society might bave been if properly managed, with no other view than tbe benefit of its own members; let me suppose that, instead of being blinded by pre judice and passion, its leaders had opened their eyes to the real wants of the working classes, and bad earnestly set about to supply them; that, in stead of acting upon tbe principle that what they did not kuow was not worth kuowlug, they bad listened to the advice of real friends, and ac tively co-operated with them to secure constant em ployment for those who depended upon them then, Indeed, this association might have been a blessing instead of a curse to its own members: it might bave secured them from oppression; given them regular employment at remunerative wages; cared for them when sick or injured, and provided for their wives and children when illness or accident bad disabled them from work. But it is not only what this association has done, but of the means resorted to to accomplish It, that we complain. Mr. Hall has been very severe upon us because the employers ventured to meet together and decide upon the amount of wages they could aflord to pay, without first obtaining the permis sion of their workmen. But Mr. Hall's clients, the Workingmen's Benevolent Association, never con sulted any one before resorting to the arbitrary measures that bave marked their sway. Before ordering the suspension of work, which now de prives thousands ot men of brea J, reduces the owners of collieries to bankruptcy, aud paralyzes the Industry of a whole State, they obtained the consent oi no one out toe tew leaders whose secret conclave Is denominated the General Council. It is by brute force alone that all their decrees have been carried into effect, It Is by brute force that they have compelled a large proportion of their members to join th sir organization; it Is brute force that now prevents thousands from leaving it; it is by brute force that this present suspension has been Inaugurated, and it Is by brute force alone that they hope to terminate It. For three weeks, gentlemen, you bave been listening to the testimony of wit nesses, revealing the existence of a state of society In the coal regions of Pennsylvania the mere recital of which must bring a blush to the cheek of every good citizen. You have heard how often a large colliery has been compelled to remain Idle for weeks and months, on account of the refusal of its owner to comply with an order of the Work ingmen's Benevolent Association, requiring him to dismiss bis superintendent, or to refuse to employ some man who was obnoxious to the organization. Y'ou have beard how notices bave been served upon coal operators, containing a list of names of persons employed by them who did nbt belong to the Union, in which it was announced that if those whose names were given did not join the Association before a certain day, no more work should be done at the colliery; and you bave beard bow the colliery was compelled to remain idle for davs and weeks, and how. at last, the ostracized miners who refused to join the society were com- peuea to leave tneir nomes to engage in new pur suits in other places where the rights of personal liberty and personal security were held to be some thing more than a mockery and a farce. Y'ou bave been told by Mr. Markle bow his men refused to work for bim because he complied with one of the firovlslons of the ventilation bill; and you have earned from the officers of the Workingmen's Benevolent Association themselves, that If one of their own members does not pay his dues to the society, his employer is punished by stopping all work at his colliery until the delinquent member discharges the amount. We bad over a hundred witnesses to call upon this subject; but, out of de ference to tbe general desire to close the investiga tion as quickly as possible, we called but twelve or fifteen, and from these you learned enough to know that In this free State of Pennsylvania, within one hundred miles of the capitol,tbe liberty and pro perty of our citizens are held at the mercy of the decrees of a secret tribunal, above and beyond which there Is no law and no power to which tbe oppressed people can apply for protection, or resort to for redress. Let me now ask, whose fault Is it that the pre sent suspension still continues? I have shown you very clearly, I think, and Indeed upon this question there Is no dispute, that the suspension was ordered by a decree of the General Couucil of the Working men's Benevolent Association, made at time when there was not only no dispute about wages in either tbe Schuylkill, the Lehigh, or the lower part of the Wyoming districts, but no design or Intention on the part of the employers to reduce them, and that the sole objects of the Workingmen's Benevolent Association were to increase tbe price of coal and assist the men of the three large mining companies. During the month of February the meetings of railroad omciais, coal operators ana iron men, about which you have heard so much, took place in New York and Philadelphia. The object of these meetings was to adopt some equitable rate of wages to be paid in each of tbe tbree regions, so that thereafter there should not be a repetition of the experiences of tbe past two years, such as paying higher wages in one region than in another, or stop ping one region to benefit the men of another. At these meetings it seemed to be conceded that the rate of wages should be established in the Schuyl kill region, and that the others should conform to it. Accordingly, we adopted for Schuylkill tbe very basis of wages which the committee of the Work ingmen's Benevolent Association had already recommended for the year 1871. We took then at their own offer; although it was generally believed that the price of contract work at the 82 60 basis was entirely too high. We offered to the men precisely the same terms which they themselves in November last bad agreed should be paid to them during the whole of the year 1871. We have beard it said that this November basis was never ratified by the association. Two witnesses were called to prove that It had not been; but, on the other side, we Bhowed that Mr. Siney, the pre sident, said It had been accepted. I do not, how ever, propose to rest this point of the case upon the formal acceptance of the terms. The question is, are the terms offered fair? and upon that questton, the fact that in the month of November last, when there was no strike and no quarrel, the regularly authorized committee of the Workingmen's Bene volent Association, with John Siney, its president, at its bead, signed a paper recommending the adoption of the 82 60 basis for the year 1871, should be sufficient to convince anyone that the 82 60 basis is in nowise unjust or unfair to the men. If these leaders of the Workingmen's Bouevolent Association could recommend the 82 60 basis In November, as entirely fair and J UBt, to their con stituents, why Is the same basis unfair and unjust in January? What had occurredin thetwo months to change their minds? Why, gentlemen, in De cember a strike took place among the men of the three companies; the Workingmen's Benevolent Association was asked to join it. Their cupidity was aroused, and they believed that, by making the strike general, in January they could so advance the pi Ice of coal as to compel their employers to give them much more than they had themselves de manded, it nas been saia that this 'i do basis is too low; that, under it, when coal sells for two dollars, the outside laborer gets but 87 61 per week. True; but when coal sells at 83, the same laborer gets 810 70 per week; and when it brings 84, be gets 813 76 per week. Under the "Uowen Compromise," the men were never paid at less than the 82 29 rate; and when coal falls to 82 at Port Carbon, the operator is losing money, he is giving the coal awav, and simply running his colliery for the bene fit of bis men. When coal brings 83 per ton, it is safe to assume that the actual labor of producing it costs 81 60 per ton: that Is, the actual sum paid out by tbe operator to nis own miners ana laborers will be 81 60 per ton. In addition to this, there are ex penses not aflected by the basis price of labor, amounting to another 81 per ton. These expenses are for rents or royalties, lateral railroad freights, timber, lumber, sheet iron, rails, horse and mule feed, insurance, &o. Thus at a good colliery, with a good month's work, the coal that sells for 83 will cost tbe operators 82 60, leaving a profit of fifty cents per ton; but out of this profit must be de ducted the losses or break-downs, strikes, suspeu sions, and the driving of dead work during the winter. Let us now look at the cost when coal Is selling at 82. The wages will then be thirty-three per cent, less, or 81 a ton Instead of 81 60 the sta tionary expenses remain tne same, 81) so that the coal costs the operator 82 exactly what be sells it for leaving no surplus out of which to reimburse himself for break-downs, strikes, suspensions and winter's dead work. It must be remembered that the men do not want a steady rate of wages, but have themselves adonted the sliding scale based upon the price of coal. As they get the benefit of every advance in price, they should be willing to decline as prices recede. In other business pur suits, when a man necomes a partner in traue ne invests his own capital, and agrees to give bis own labor for a specified time; be then becomes entitled to a participation in a dis tribution of profits, but be must also make up his proportion of the losses. Our friends, the members ot the Workingmen's Benevolent Associ ation, however, claim to be partners without in vesting any money, without binding themselves ti work a day longer than is agreeable to themselves, and without being required to bear any share of the losses. They say to their employer, you must pav us the 83 basis as a minimum; at this rate we will get, at the worst, better wages than can be earned by any otber similar class of labor in tbe world; then, with this secured as a minimum, whenever coal goes above 83 you must distribute amongst us half of your profits. The employer replies, 1 will do either one of two things: 1 will either give you regular wages throughout the year, unaffected by tbe price of coal, or 1 will share my profits with you when coal is above 83, provided you will let me deduct irom your wages, wucn coai goes oeiow 83, the same oercentaee I add to them when It risua above that price. No, reply the worklngmen, we can never agree to that; we never will permit you to oppress us and grind us into the dust in that way; you must give us all the profits and you must bear all the losses; and if you don't consent to this before next Monday we will strike. So the strike takes place, and the Workingmen's Beuevolent Hocietv Lurries off to liarrisburg to tell the dignitaries there assembled that, unless immediate relief is given them irom the rapacity and tyrauny of their employers, the said dignitaries will never again be elected to any publio position. In speaking of the amount of wages that can be earned under the 82 60 basis our frleuda on the other slue are disingenuous in referring only to the wages of the laborers. Y'ou have seen that the largest amount of wtges paid at a colliery Is to miners who work by contract: and. Indeed, all coal mining Is done by the Job. The miner Is paid by the yard or by tbe wagon, and, at the wages offered to them, every good miner can readily earn from 84 to to a day. Why, gentlemen, you nave uau tue actual check-rolls before you, aud have seen that ' - i . T 1 . . .A AOkA (lt V III All I ll Winers are earning iruiu piuv w -w r' u.n.i., ai d some even more than that; and you have had it proved that the miner seldom works more than six or seven nours a a ay. You, gentlemen, are all lawyers, and I bare no doubt that you remember now, through loug days of labor, And nights devoid of ease," vou strove tnr veara. bv study and severe applica tion, to tit yourselves for tbe duties of a toilsome ard laborious profession. I bave no doubt for it has been the experience of ns all that you were glad if, after two or three years of practice, you could count upon an income ot five or six bundled dollars a year. How many, or rather how few, of tbe lawyeis, doctors and clergymen of the United States bave an Income of 8 IRK) per annum, lam willing to accord to the miner all that Is his due. 1 think he should be well rewarded for bis toil; and I am glad when he Is nrosnerotia and hannv. but those who labor with their hands should yield to those who labor with their minds. There are those , who toll longer and harder than the miner, and who are not pain one-nan so much; and the favorsor for tune are indeed distributed by a careless band, when we find that the yearly earnings of a miner exceed the average Incomes of the three learned professions in the United States. 1 fear, too, that some of these worklngmen are disposed to take an agrarian view of this subject of their earnings. I talked to a number In the lobby of the Senate to day, and although I found most of them exceedingly sensible and well disposed towards an amicable ad justment of our differences, there was one who said to me, "Mr. Uowen, It is not fair that you should get so many thousand dollars a year, while we only ?;et hundreds." I replied to him that I could learn ds business in six weeks, but that I feared that it would require six years for bim to learn mine. This was evidently to him a new view of the case, and if It did not satisfy him, I think it silenced him. But, says the counsel for tbe Workingmen's Bene volent Association, my clients are entitled to large wsges; their vocation Is an exceedingly dangerous one; even if they meet with no accidents, the effect of working in the mines is so injurious that few live to be over thirty-five years of age. They are mere slaves, living in abject misery, and ruled with an Iron hand by their Imperious employ ers. And my friend Mr. Hall seemed so much in earnest in this belief that during ths examination he occasionally asked the witnesses whothor they ovmed their worklngmen. Now, I don't Intend to deny that mining Is sometimes a dangerousocoapatlon;but I do deny that it is as dangerous as many others in which much less wages are earned. It is by no means as dangerous a life as that of a brakeman on a railroad; and a good miner who works but six or seven hours a day will earn twice as much money as a brakeman who works from ten to twelve hours. Y'ou bave heard a very experienced gentleman upon the witness stand say that in bis judgment the busi ness ot a miner was not more dangerous to life than that of many mechanical pursuits, and that it did not compare unfavorably with that of a carpenter. There is one very great peculiarity about life under ground. I speak from my own observation, and I believe It has been tbe experience of all who have given the matter much attention when a man once becomes accustomed to work in the mines, he never will work elsewhere. I bave often heard this as serted, and have never beard it denied. Mr. Sharpe, when explaining how tbe high wages paid during the war attracted to tbe mines men of other trades, spoke of a shoemaker and a tailor who had become miners, and who, throughout all the vicissitudes of tbe past two years, remained firmly attached to their new profession, and did not think of abandon ing it. So much for the danger. How is it about the poverty, degradation and tho mournful state ment of tbe early death of tbe worklngmen ? 1 did think that when it was announced and, I believe, attempted to be proved that the miner generally dies at thirty-five years ot age, our friends, out of regard to tbe fitness and propriety of the thing, would call no living witness who was over thirty-five; and I expected that some drama tic efl'ect would be produced by the appearance of witness after witness, decrepit with premature age and bearing npon bis person, and exhibiting in his manner, the unmistakable marks of servitude and degradation. I had noticed that there was sitting near us, during much of the examination, and apparently taking a great interest in the pro ceedings, a very respectable, well-dressed, elderly gentleman, who had the appearance of a well-con-itloned clergyman, and 1 supposed bim to bo some minister of the gospel who was interested in the solution of the social problem that it is presumed will be solved by this investigation. This geutle man, to my surprise, was called to the stand as a witness. He was a miner; bad been one all bis life: he was sixty-five years of age; strong in wind and limb, and an active member of the Workingmen's Benevolent Association. It was our friend Mr. Wll HaniB, who now tills the responsible position of a member of the House of Hepresentatives of the great State of Pennsylvania, and helps to make the laws which all of us must obey. It Is painful, gen tlemen, to reflect upon the long course of misery and degradation through which our friend Mr. Wil liams must bave passed before he was reduced to his present extremity. The next workingman called to the stand was Mr. Hallman, from Danville. He Is a blacksmltb by trade, and an officer of the Na tional Labor Union. Nature bad adorned him with a magnificent beard, and art bad arrayed bis person In a suit of French broadcloth; he carried a gold beaded cane; and, with all these outward marks of uncomplaining penury and toll, he pathetically described bow the class to which be belonged had pu tiered, and were still suffering, from the tvrannv and oppression of those grasping monopolists the railroad companies. Why, gentlemen, when I looked at these witnesses and compared their dress with my own. I really felt somewhat ashamed of myself; and if I had bad a better suit, I would have appeared in it, out of deference to yourselves and regard for the reputation of my clients. But it is not only upon the witness-stand that these evidences of degradation and misery have p escnted themselves to you. I have been in Har risburg the greater part of three weeks, and, as our sessions have been held In the afternoons and even ings, I bave had a great deal of leisure during the earlier parts of tbe day. and have occasionally ven tured within this chamber when the Senate was in session, to watch the process of law maklug. 1 remember that on one occasion my attention was attracted to two or tbree gentlemen engaged in earnest conference with senators at their desks, and apparently remonstrating or expostulating with them. I Inquired who the gentlomen were sup posing, of course, that they were senators. I was told that they were not senators, but members of tbe Workingmen's Benevolent Association. "What are they doing on the floor of the Senate?', I ex claimed. "Why," replied my informant, "they are instructing senators how to vote npoa certain bills, and threatening them with defeat at the next elec tion if they dare disobey." And it is these people who brow-beat senators who are members of the Legislature who dress In fine broadcloth and carry gold-headed canes who bave the impudence to appear before you in forma pauperii. I bave now shown, I hope, successfully, that the amount of wages they can earn at our off er exceeds that realized by any otber class of equal skill in the world; that the offer In Schuylkill county is pre cisely the same as was recommended in November by tbe very leaders who appear ia March to de nounce it as unjust; and therefore, that, by refus ing to accept it, the worklngmen are as much in the wrong in protracting the suspension, as they were in originating it. I come now to the action of the railroad compa nies. On the fifteenth of February, the Heading Kallroad Company increased its charges from 82 03 to 84 08 between Port Carbon and Philadelphia. Shortly afterward, the other companies made a similar advance; and again, about the first of M arch, an additional advance of 82 was made by tbe Head ing Kallroad Company alone. Under this state of facts, two questions arise for discussion: First. Had these several railroad companies the lawful right to make these charges. Second. Have they exercised their power in such a manner as to amount to an abuso or misuse of their charters? and subsidiary to this, Is the Inquiry into the power of the Legislature to determine the question of abuse or misuse. Mr. Brockway has referred you to each particular charter, and my colleague baa discussed the ques tion of tbe right to impose charges, so fully, as to leave little lor me to add. There are but five statutes, or parts of statutes, which require con struction: 1st. Tbe tenth and twentieth sections of the Heading Kallroad charter; 2d. The eighteenth section of the general railroad law of 1819; 3d and 4th. The acts of I860 and 1868, relating to the Dela ware and Lackawanna and Western Kallroad Com pany; and, 6th. The act of 1870, supplementary to the charter of the Lackawanna and Bloomsburg Kallroad Company. Under the charter of the Reading Railroad Com pany, granted in 1833, power was given to the com pany to charge as tolls not exceeding four cents per ton per mile. By another part of the same charter the company was authorized to furnish motive power aud to transport passengers and freight, though no thing is said about the charges for such transporta tion. Now, the points we make are these: First, that the word tolls refers only to the charge for the use of the roadway when the transportation is done by others; and, second, that as power was given to transport, it follows, as a necessary consequence, that there is to be implied a power to charge for such service; and, as no limit is Imposed by the statute, the managers of the company bave a dis cretionary power to regulate tbe charges. I do not propose to enter upon any elaborate ar gument upon these points. Fortunately for me, as well as yourselves, gentlemen, we have an express authority in tbe case of Boyle vs. tbe Philadelphia and Heading Kallroad Company, 4 P. F. Smith, page 810, where the very points raised by our friends uion the other side were discussed aud finally determined In our favor. This decision of tbe highest Judicial tribunal of the State, I am sure, will be considered as authority by you, not withstanding the attacks which bave been mad j upon it by Mr. Hall. In tbe year 1833, when tbe charter was obtained, railroad companies were uot transporters. They simply furnished a road-bed, kept it in repair, and collected a toll from those who put cars upon it. Originally these ears were pulled by horse power, aud afterward by loooniQ fives. 1 ran very well remember when, upon the State road between Columbia and Philadelphia, there were a number of passenger and transporta tion lilies owued by dtnereut individuals, who ai 1 the State a toll for passing over the railroad. And it was exactly such a toll that was lueaut by tba Legislature nheii the Heading Railroad Company was restricted to the charge of four cents per ton per mile. Hie very fact that In another vart of the charter power Is given to transport, Is sufficient to show that tbe charge for tolls did not include the cost of transportation and car service. I admit that charters are to be construed favor ably to the State, and I admit that a corporation takes nothing by implication: but this last position Is admitted with this qualification, that where power Is given to a company to engage in business there Is necessarily to be Implied a power to charge for transacting it. Suppose a company was char tered witn power to make gas and sell it to the Inhabitants of Harrishurg, would it be pretended that, because no specific power to charge for it was f iven, the company would have no right to collect is gas bills? or if a lawyer was created a corpora tion sole, to practice his profession, would It not be a necessary Implication that he had the right to collect fees for his services? Will It be pretended that a hotel company, holding a charter which does t!ot specifically grant the power to charge for board and lodging, has not only no power to discriminate in its charges between the price of a sirloin and a mutton chop, but that any impecunious guest could defeat an action for the price of bis board, by asserting that it was an abuse of the charter of the company to attempt to make him pay for what he bad eaten? Surely, then, both upon reason and authority, I am Justified In asserting that the Heading Railroad Company has in no manner vio- lated its charter In establishing or collecting Its present rates for tolls and transportation. Tbe rights of the other companies are all to be determined by the eighteenth section of tbe general railroad law, for though some of their charters were obtained before the passage of that law, they bave subsequently been placed within its provi sions. Under the act of 1849, railroad companies are restricted to tbe following charges in carsot others: Three cents per 2000 pounds per mile, with an addi tional charge of two cents per mile per car, every four wheels being counted as one car. Now, three cents per 2000 pounds per mile is equal to 3.36 cents for 2240 pounds per mile; two cents per mile each, way equals four cents per mile one way for the car; divide this four cents by the cargo, five tons, and It will make eight mills per ton per mile, which, added to the 3 36 cents, makes 4.16 cents per ton of 2240 pounds per mile as the maximum rate which railroad companies are permitted to charge, under the act of 1849, for transportation in can of others. It is always to be borne in mind that, even under the act of 1849, there Is no limit Imposed npon the charges when the railroad companies furnish their own cars. But it baa not been shown that any one of the several railroad companies who are re stricted by the act of 1849 has ever made a charge of more than 4.16 cents per ton per mile for trans portation of freight In cars of others, and there fore not one of them has violated Its charter. Our friends upon the other side have singled out tbe case of a charge made by the Lackawanna and Bloomsburg Railroad Company of 81 25 for trans porting a four-wheeled car load of limestone six miles, and, drowning amid tbe waves of testimony which overwhelm them, seize upon It to save them selves. This limestone, it appears, was transported in the cars of the consignor, and hence the limit of 4.16 cents per mile applies. This charge per ton multiplied by six miles would give 24.96 cents as tbe maximum charge per ton allowed by law. As suming the car to have contained exactly five tons, the rate paid was 29 cents per ton Just four hun dredths of a cent, more than was strictly lawful. I presume that with you, gentlemen, the maxim de mintmit non curat lex will relieve us from the weight of this grievous offence; and if the Work ingmen's Benevolent Association are not satlstlod, and want to get bold of this four hundredths part of a cent, I will discharge the amount on behalf of the Lackawanna and Bloomsburg Railroad Com pany whenever I can find In my pocket any change small enough to meet the-demand. But, if I recol lect tbe testimony, it was proved that each car con tained five and one-quarter tons; so that, really, the railroad company bad the legal right to charge 81 31 4-100 per car Instead of 81 26; and our friends take nothing by their motion. I cannot help, how ever, expressing some surprise that in this ooal in vestigation, in which exorbitant and illegal charges for the transportation of coal were made the burden of complaint, and the wrongs of the suffering miners and laborers of the coal region were to be redressed, our friends should have changed base so suddenly and brought up this limestone reserve to cover their retreat. I now invite your attention to tbe acts of 1856 and 1866, relative to the Delaware, Lackawanna and Western Railroad Company. By the former It was, inter alia, enacted that tbe company should not bave the power to purchase coal during sucb time as their charges for transportation were over two cents per ton per mile. We claim that the act of 1866 repeals this provision of tbe act of 1856; but admitting, for the purposes of the argument, that it does not, what follows? not that tbe company cannot charge more than two cents per ton per mile, but only that when It does charge more, it cannot purchase coal; and where, I ask, is there any evidence that the company has purchased ooal when Its tolls were more than two cents per ton per mile? There is none, and if there was, what has the purchase of coal to do with the question to be discussed before you? Tbe only remaining statute Is the act of 1870, supplementary to the charter of tbe Lackawanna and Bloomsburg Railroad Company. This act pro vides that for any distances under ten miles the company shall have the right to charge twenty ctuts per ton, whenever by the act of 1849, they would not have bad tbe right to charge so much as twenty cents. This act has been cited as restricting the company to a charge of twenty cents for any distance under ten miles; but it only requires to be read to see that, instead of restricting, it en larges the power of the company It enables them to charge more than they otherwise oould hava done. Thus for two miles they would bave been restricted by the act of 1849 to a charge of 8.32 cents per ton; but, by the act of 1870, they can now charge 20 cents. The privilege of charging 20 cents is to apply to such distances under ten miles for which under the general law they would huve bad no power to charge that much. . I bave thus attempted to show that, under tbe firoper construction of the several statutes, no Uegal charge has been made by any of the several railroad companies. Before leaving tbe questton of violation or charters I should, probably, allude to that part of Mr. Brockway's argument referring to the quantity of land held by the Delaware anil Lackawanna Railroad Company. It is said this company baa too much land, and that no authority has been shown to hold it. I really do not know what this has to do with the case now before you. I do know, however, that when General Bris bln, of tbe Delaware, Lackawanna and Western Railroad Company, was upon the stand, and an inquiry was made as to tbe power to hold land, he offered to produce a memorandum of the several statutes if they were required; and Mr. Hall stated that, as it bad nothing to do with the subject or the investigation, be would not require them. We are prepared, if necessary, to show that the company nas legal authority to hold all its land; but I appro- bend that you will be obliged to us tor not accumu lating a mass of testimony upon an entirely irrele vant subject. And now as to tbe second question bave any of these railroad companies misused or abused their franchises? 1 bave shown bow large an equipment and orga nization we are always obliged to keep up. I bave shown that this equipment and organization are to all of us almost as expensive when we are doing nothing as when roads are taxed to their fullest ca pacity. We are all anxious for trade; have always been willing to do the largest possible amount of business at tbe lowest possible prices. But when we are thus fully prepared for trade, an order of the Workingmen's Benevolent Association suddenly deprives us of our business. Upon the Reading Railroad the tonnage falls from 150,000 tons a week to 10,000 tons, but the expenses remain nearly the same. The coal which cost us but 81 60 to move when we were transporting 150,000 tons a week, now costs us from 86 to 88 ton. Must we continue to carry it for 82 when it costs us 86; or is it not a perfectly reasonable exercise of the discretionary power vested in our board of managers to Increase the charges for transportation, so that the receipts ot tbe road shall in some measure approximate to its expenses? Can it be possible that we are so entirely subject to the dominion of tbe Working men's Beuevolent Association, that we must tamely submit to bankruptcy, and not strike one blow for the defence of the property which is committed to our charge? The laboring classes have been re duced to starvation; the coal operators are trem bling on the verge of insolvency; the iron trada has been completely paralyzed, aud, looking over the ruin and havoc they have made, the leaders of this association see one otber interest which they have not yet completely subdued. Because this Interest which I now represent adopts means of self-defence, it is represented as a grasp ing monopoly whose existence is injurious to the welfare of society and detrimental to the best lute rests of the State. Is it au abuse of our charter to attempt, by the legitimate exercise of a discre tion vested in us by the Legislature, to preserve the company from destruction? Have we misused our power when we have only striven to proteot our selves irom bankruptcy? It was part of the con tract between the State and the company, that in tbe managers of the latter should be vested the descretion of establishing the rate of tolls aud charges for transiortatlou. Why should we ba called to account lor the manner in which that dla cretiou has been exercised, v. hen we have acted only in obedieuce to the natural Instincts of self preservation? It is said tbatour charges are prohibitory; but where is the evidence tbat one siugie ton has been prohibited from being transported? is not the evidence uuetmtroverled, tbatths Anthracite Board of Trade, comprising nearly all the coal opetatot Cvntinued on fi Third "tya.