The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-09-06
Further Needs Of
The Coal Trade

FROM the September Letter of the An
thracite Coal Operators Association.
because of the marked Improvement
shown this year in the conduct of the
trade, it is pertinent to suggest that fur
tner changes are desirable. A more care
full estimate of, and rigid adherence to,
the monthly requirements of consump-
tion are essential Those whose market
mas particular season shonld be en-
abled to meet its requirements at the
proper time, without giving excuse to
others to mine larger quantities in the
same proportion, with always the chance
of overlooking another market Some un-
derstood differential should be allowed
Tor certain grades of coal. In the actual
selling of the product, the acceptance of
orders without any guarantee that the
buyer will receive the coal is unsatistac-
tory, and the system of practically fur
nishing the capital, through credits, for
dealers, is also objectionable, and, as has
been learned by experience. exceedingly
expensive. 1t would be possible to specify
numerous details of this character which,
while there may be some reasons for
maintaining them, are on the whole in
consistent if the trade is to be carried On
upon cledr-cut business basis.
Because of many of these things, and
particularly the tendency to overstock
the market ana the failure to maintain
prices, new circulars, when announced,
receive little attention. Unless the mar
ket is quite active, retail buyers have
been able to count on purchasing at the
previous circular. Many of those who
sell have previously consigned coal to
themselves, and, arguing that since the
coal was delivered to their account under
the lower circular, it is not as much af-
fected by the higher one as II it was new
mined coal, they are therefore justified
# al "a from
new one. Necessarily, this affects all
sales, and when, to again try to secure a.
higher price, another circular is Issued,
the same result follows. 1t is simply try
ing to cover one fault with another, and
is wholly unsatisfactory. Moreover, the
announcement of such circulars gives an
impression that the full advance called
for must be paid. The general public is
not familiar with the various intricacies
of marketing coal and takes the publica-
ton of circular of prices as a literal
statement In consequence, the retail
dealers are enabled to make an advance.
and can point to the tidewater circular
as proof that it is necessary. Consumers
then buy at figure which, if paid to tho
coal mining and transporting companies
would Justify semi-annual dividends on
an issue of securities far in excess OF
those which they now have on the mar
ket.
The unity OF purpose shown thus far
this year is capable of a vast amplifica-
tion, and it must reach a much higher
plane than even now before the trade is
in the position to which 1t is entitled and
which, if ever reached, will be as great
and valuable a benefit to the consumer
as it will be to the carrying companies
and operators.
Now that the winter season is approach
ing we are about to see whether or not
the efforts of eight months in keeping
the tonnage within the consumption will
be continued so that some benefit may be
derived from the era Of good judgment
we have been in. Already, the effect of
a slight excess in July and August has
shown in a weaker market. VIII the ton
mage be kept within the market require
ments, or, when the demand shows signs
of improvement, will the lesson of the
past be set aside? 1t is a critical time and
it is to be hoped for the general welfare
of the trade trat good judgment will pre-
vail. From present appearances it seems
doubtful whether the output for the en-
tire year should exceed S,00000O tons.
The shipments for the first eight months
of the year, from 1892 to 1895, inclusive,
have been between 81 and 81 per cent. Of
the years product. If the tonnage for
this year should be assumed on the 81
per cent. basis, as in 1895, the total output
would be 80, ,OOOO 900 tons; on GO per cent, 49,
900, 900 tons, and If at GA per cent, as in
1893, the total would be 3T,0OO,OO tons. 1t
Is evident that there must be an unpre-
cedented development of the market be-
fore it can absorb 100000 tons, as is es-
timated by some, without throwing prices
back to the level of two years ago. 1t
is probable that 3s, ,00O 900 would be safe
output, as on this basis there would be
about A,5OO,OOO tons to be produced in the
next four months.