Bank Failure

Some time ago, the union miners in the bituminous coal fields enacted high-wage contracts with the operators. As a result, operating costs in the union soft coal fields shot up; and competition has proved difficult with the non-union fields of West Virginia, where lower costs enable operators to cut prices to consumers.

The depression in the union bituminous fields and the contrasting prosperity in the non-union fields have produced some interesting effects in other lines of business. The "coaler" railroads serving the non-union fields have enjoyed heavy traffic and large earnings, while those through the union fields have met declining haulage.

Recently, the depression in the union fields has led to the closing of the First National Bank of Carnegie, Pa., and also of the Carnegie Trust Co. Both institutions were controlled by John A. Bell, prominent coal operator and politician. Two years ago, Bell bought the Carnegie Coal Co. from its former owners, J. H. Sanford and J. T. M. Stoneroad, by issuing bonds and later hypothecating his stock to meet charges on them. The banks were holders of the bonds; and when payment on them was no longer possible because of depression in the coal business, it became necessary to close the two Carnegie Banks, and also to resell the Carnegie Coal Co. stock to Messrs. Sanford and Stoneroad.