The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-07-19
The HnthraCite
Outlook Bright
From the New York Sun.

The statistics of the anthracite coal
production for June and for the six
months of 1897 ended with June 80, with
the deductions that may be drawn from
them, are extremely encouraging for the
great coal companies and coal-carrying
railroads. The output for June was -
100000 TONS a decrease of 1874 100 tons as
compared with the same month in 1876,
and a decrease of S57 Gal tons as COM
pared with June, 1895. The total ship
ments for the six months to June 50 as
gregated 16 100000 tons, as against 49,
sos, 54S tons for the corresponding period
last year, a decrease of 2,79S 54S tons. Ii
is fair to assume that the small ship
ments of the last six months are not due
to any equivalent falling off in the mat
ter of consumption, but only 10 curtail-
ments of purchase which have been
brought about by greater concert in the
action of the companies, and as con.
sequence the balance of the year must
see an enormous amount of coal mined
and shipped to bring the years supply
up to the average. What the total
amount will be no one can predict with
anything like accuracy, for the figures of
the past four years have shown great
fluctuations.
Ten years ago the country was using
more than 30,000,O00 tons of anthracite
coal each year and the tendency then
w
rate of 10 per cent a year If such rate
had been kept up the amount now in de-
m9nd would be more than 75OOO.0O0 tons.
Instead of this the amount mined in 1895
was 4G,000,000 tons and in 1896 43,0y) 600
he business was on an unsound basis,
and the effort of every operator to take
advantage of every chance for sale
kept prices down. and although there was
an Improvement in this respect in 1896
over 1895 to an extent of perhaps 40 cents
a ton, such big coal roads as the Central
Railroad of New Jersey and the Della
ware and Hudson were forced to reduce
their dividends. Jersey Central's divi-
dends fell from per cent. to A per cent,
and Delaware and Hudson'S from G or Z
per cent. to per cent. 1t seems certain,
however, that the total hard coal con-
sumption cannot fall below the figures of
last year, and if this proves true, there
are still nearly $1,000, 900 tons to be mined
and shipped before Dec. 81. This would
be 4,5OO,OOO tons a month to be distrib-
uted in an even manner over every one
of the big hard coal roads. If with this
coming business there was also to be ex-
pected a lowering of prices or failure
| to uphold a fair price, then the outlook
would be anything but bright for the
| railroads But this seems to be far from
| the case. Prices are ruling stronger and
nearer to the card rates than they have
| for long time. Some stove coal has
| the companies declare that in August
| they expect to receive the full July cir
| cular rate of $3.50.
One of the causes which have led to the
small shipments of coal in the last few
| months is the curtailment of credits
which the companies used to extend to
| dealers. 1t had been the rule to let these
| dealers fill their yards with coal and pay
| for 1t on long credit The railroads found
| themselves hard pressed to carry all of
| these accounts last year and they have
put in operation determination at which
| they arrived then, not to extend any long
credits. One effect of this is that now
| when the heavy fall sales are about to
| begin there is little coal in sight There
| Is none at the mines nor in the big coal
| pockets and the Anthracite Operators
| association found after examining nearly
| 200 coal yards in this city that they con-
tanned only 10000 tons, or Is per cent. OF
| Their half million tons capacity. This is
/ believed to be a fair indication of the
yards along the whole seaboard When
the demand for fall begins, 1t will then,
apparently, set all the miners at work
| and tax the resources OF railroads and
shipping docks.
| Many strong dealers are said to be fol-
| lowing their old tactics and holding off
from placing their orders on the hope of
breaking the price, as they have done
many times before, but the operators de-
claro that this can hardly happen this
year, because of the circumstances lust
| described. 1t Is confidently believed that
an average rate can be obtained for the
| coal yet to come to market of so cents a
ton higher than it was last year. IF this
| proves true the result will be of vast
benefit to both operators and the coal
| roads. Under their agreements the rail-
| roads and operators share the price of
the coal in proportions of 60 per cent. to
the railroads and 40 per cent TO the oper-
ators. An advance of SO cents a ton
therefore means a clear gain of 30 cents
to the railroads for every ton hauled, and
where the railroads are also the mine
| owners, as is the case with many of
them, the whole increase in price is their
| gain.