The Saint Paul globe., 1905-03-27
THE COAL TRADE

CHICAGO. March 25.-Many of the
western coal distributing centers are de-
murrage markets this week. with the
bituminous product selling at any figure
which IL will bring, all of the pressure
being on the sales end to dispose Of ton
mage on track with as little loss as possi-
on a considerable portion of the coal Of
fered in the Chicago market and as a
consequence prices on the spot product
are at the lowest point they have reached
In recent years. How long this demorali-
zation in the Chicago trade will continue
IS the important question of the hour.
Buying demand is very light and there
are genuine bargains in almest any de-
scription of coal that may be named Six
or eight months later I'm the season buy
ers will look back at present figures and
wish they had some Of the coal which
they could have purchased in March
at prices way below the circular basis.
Dealers or consumers who have storage
room will make no mistake in absorbing
coal offered at present figures, even
though they may be obliged to carry IL
over until fall and winter before ii is
consumed. 1t is. doubtful even in April,
If prices will be as low as they are to-
day. Some coal has been sold i'm the Chi
cago market during the past week at
loss of 25 cents ton under the cost of
production, while very little of the BIZ
luminous product has brought up to the
cost of production when offered in the
open market
The position of spot coal is having an
influence on the situation as to new con-
tracts. Some new business is reported to
have been closed obligating buyers and
Shippers for the new year, but il has been
at ruinously low prices or at figures which
were made year ago and which now are
to be continued until April l. 1906. There
is considerable inquiry as 10 contract
business and producers are naming their
prices for the new year, but the volume OF
tonnage that is being closed up in this
manner is comparatively light. Buyers
are inclined to wait unless they can gain
slight concession, while producers can
not in very many instances name lower
figures than those at which they took
business last year. Operators should not
oblgate themselves TO supply tonnage at
figures named by the buyers. If they do
so they will discover six or eight months
later they have tied themselves up to
their loss. According to reports I'm Chi
cago, one Indiana producer obligated
himself during the week to supply GER
tain tonnage of Sullivan county run of
mine coal the coming year at IS cents at
the mine. This price is so ridiculously
low that II seems absurd to give II seri-
Gus attention. IL represents an actual loss
10 the producing company and will
prove an undesirable contract before the
end of 1905. In another instance Il is re-
ported that price as low as S21k cents
a ton has been named on a large contract
for run of mine from another district for
the ensuing year.
In the anthracite trade the situation
as TO immediate business shows no i'm
proVement over week ago. Possibly
there IS not quite as much private"
coal oHered IN the Chicago market as
| there was at that time. but sales for inn
mediate shipment are light and conces-
sions must be granted for jobbing con-
Germs having spot coal which they must
move TO avoid car service charges For
immediate shipments where this coal is
on track the asking price is $625663o f.
o.. b. Chicago by jobbers representing
| private producing companies. The regu-
lar shipping companies are not deviating
! from the circular basis at this time but
| on the whole are doing a very small
amount of business. Some idea of the
| situation may be obtained when IL is
| known there We're over ] 600 cars OF an
| thracite on track at Chicago last Sat
urday. of which 107 were drawing car
| service.
With April only few days distant
J preparation is being made by the ship
ping companies for the new years busf-
ness. acquisitions are being made out
| and at important points the work of over
| hauling lake docks will shortly be under
| taken with view to handling a large
! tonnage the coming season. II is too
early to announce when lake NAVIGATION
Will open, but with a continuation of the
present temperature in the west naViga-
| tion to Chicago ought TO be possible by
| the middle of next month. Some coal is
being loaded at Buffalo for western ship
ment and as soon as the channels are
open at the north end of Lake Michigan
1T is probable that this coal will begin
TO come forward.-Black Diamond.