Frostburg mining journal., 1883-04-28
CITY Viefps of the Coal Trade.

Clear6sld caols are dull OF sale-few
contracts made and those not not
large. There seems to be a contest
between buyers and carriers of thi.
variety, under the operation Of which
the producers of coal find it imp ossible
to make satisfactory contra cts.
tits to be hoped that this state Of
things may be corrected before the
season is too far advanced. mining
Record,
1t now appears that number Of
railroad cont rscts have been clored,
generally we hear at unprecedented.
ly low fgares. Among those Of
which we have heard are the New
York Central, 10000 tons, to two
Cumberland companies; the New
York & New England, 100000 toms
to Clearfsld parties the Boston &
Lowell, 10000 tons, to Gum berland
and Clear6eld operators; and the
Boston g. Providence, 20, 900 to q
Cumberland firm. There are others
pending, but, so far as We can learn,
not closed.
There are many causes that have
contributed to the demor alization OF
the bituminous coal trade. Among
these we would note establishment of
number of firms of middlemsn, who,
claiming to control a considerable
trade, and knowing approximately at
what the operators can lay down
their coal at tidewatsr shipping ports,
have succeeded in obtaining coal at
low prices. In order to establish
themselves among consumers, these
middlemen have offered their coal to
them at low figures. Thus, for in
stance, one frn, which had con-
tracted for $4,000 tons Of Cumber-
land coal, flooded the East with cir
culars offering it at $3,75, or even
less. This naturally reacted on the
trade, soaring off buyers and induc-
ing them to hold off. Other firms,
from other causes, pursued a similar
policy. The most potent element of
Encouragement to the entire trade
has, however, been the uncertainty
as 10 the relations of the Baltimore &
Ohio and Pennsylvania railroads.
There is every reason 10 believe that
the former preferring to carry mod
crate amount of coal at good profit,
believing it to be a staple article. Of
which the market mnst take mini
mum amount, has not awerved from
its rates. The Pennsylvania, under
the pressure of repres entstionG of
low figures of Cumberland coal ship
ped BY canal, seems to have. made
concessions, but is now undeIstood
after an explanation with the Balti-
more & Ohio, to have resumed an at.
titude of great fifmness.
1t is believed that, with a view to
forestalling any heavy purchases of
coal abroad for the steamer trade,
made possible by the change Of duty.
Clearfeld operators have, with the
assistance Of the Pennsylvania Rail.
road made contracts at the low rat e
of $4 for season delivery. This, of
course, is an exceptional matter, fore
ed by the circumstances.
The developments during the past
years have done much harm to the
trade. Buyers have become accus-
toned to locking forward to conces-
sions by playing off the one region
against the other; they have in the
past engineered low prices, and they
cannot be shaken in the conviction
that they can do go in the future.
This season has rather confirmed
those views, than otherwise, and
there seems little doubt that, notwith-
standing the supposed understanding
between the railroads, there has been
extraordinary concessions. 1t is true
that the canal has been disturbing
element, by making prices which
railroad shippers could not meet, but
there vas little reason why producers
should not have realized considerably
more than they did. The competition
between the two rival regions is in
tense, but it may be questioned
whether it is good policy on the part
of either party to drive it to point
where it will be disastrous to both.
For the present, it seems that truce
has been formed. We quote: Clear
field, $425@$4.50 alongside; and
Cumberland, S4 25(1S4. go according