The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1919-08-28
mo SOFT COAL :
PRICE COMBINE"
SAYS WITNESS
J. D. A. Morrow Tells Senate
Committee Such a Combina-
ton Would Be Impossible
QUOTE PRICES At MINES
LOWER THAN LAST YEAR
Better Grades Of Coal Have Advanced
But Lower Grades Declined, Max
Ing Average Of all Grades Less.

Washington (SpeciaO.-A combine
ton among bituminous coal operators
to maintain or FIX prices does not en-
list and would be impossible If attempt
ed, ]. D. A. Morrow, Vice President Of
the National Coal Association, told the
Senate subcommittee in its first days
inquiry here into the coal situation.
Prices at the mine, Mr.. Morrow added,
have declined under the competition
which prevails and are lower now than
they were a year ago.
There are about 5000 separate COM
mercial producers operating approxi-
mately 1000 mines, from which BIZ
luminous coal is regularly shipped"
Mr.. Morrow said. "In addition there
are some 1000 operators with about
1900 mines, who begin producing and
selling coal whenever the price goes
up little and offers profit to them.
Thus in 1917 coal production was re-
ported to the United States Geological
Survey from 1904 mines. Moreover,
there are hundreds of thousands of
acres Of coal lands along railroads OH
which new mines can he readily and
quickly opened by any one so disposed.
Such condition obviously does not
lend itself to restrictive combinations
among producers. In addition the op.
orators of each mining field are sub
ject to competition from the producers
of other fields, so that buyers have
many different sources Of supply avail
able to them.
Anyone who alleges that there is
nationwide combination among btu
minous coal producers when these are
the conditions of bitumlnous coal pro-
duction and distribution, merely adj
vertises his own ignorance, or convicts
himself of deliberate and vicious mis-.
statements.
"Of the 5000 separate bituminous
coal producers in the United States,
1924, approximately 40 per cent, hold
membership In the National Coal AS
ISOLATION. They produce about sixty
per cent of the total output of bitumln-
GUS In the country.
Charges that the National Coal As.
ISOLATION is a combination to maintain
prices are without foundation In facts.
They doubtless proceed simply from
ignorance of its purpose and activities.
The National Coal Association neither
buys nor sells coal; neither does II
have anything whatever to do with the
prices which its members ask or sell
at, nor with the territory into which
they ship their coal, nor the quantity
which they produce"
Mr.. Morrow stated that bitumlnous
coal prices have declined since the
armistice, and In general are lower
than the prices fixed by the United
States Fuel Administration. He sub
mitted charts to the committee graph
ically showing the prices which blum
inous coal sold at the mines in differ
ent districts Of the United States from
April to August 1, 1919. In connec-
zion with these charts Mr.. Morrow ex-
planned that when the price restric-
lions Of the Fuel Administration we're
removed on February / last. the bet
Ter, more desirable Goals went to pre-
MUM In the open competitive market
and the less desirable Goals declined
In price. This was the action to be ex-
pected, he said, In market where the
buyer exercises his choice and can OBJ
tain the kind he prefers. As a result,
instead Of the uniform prices In differ
ent districta, which were fixed by the
United States Fuel Administration,
prices promptly spread out, some coal
going higher and come lower than they
had been.
Meantime" Mr.. Morrow said, "the
cost Of producing bituminous coal IL
higher now than 1t was a year ago due
to the fact that the mines then were
operating six days week and in many
cases now are operating only four days
per week, and In some cases only three
days per week. The overhead expense
OF maintaining mines goes on just the
same whether coal Is produced or not.
These idle day expenses have resulted
in increased costs per ton. as COM
pared with last year. When these In
creased costs are considered In connec-
nection with the general decrease in
prices, 1t In clear that profits Of bitum-
nous coal operators are materially
less than year ago"
Referring to statements by Repre-
sentative Huddleston Of Alabama, Dl-
rector General Hines Of the Railroad
and others, to the eff
feet that bituminous coal prices at the
mines are unduly high, Mr.. Morrow
snid: II wish to deny publicly and
emphaticaiiy these allegations that bl-
luminous coal prices are being main
tanned In some improper manner and
are unduly high. I am convinced that
these statements proceed simply from
a lack of understanding Of the facts"
Mr.. Morrow drew comparisons be-
tween the prices Of bituminOus Goals
at the mines In the United States and
foreign countries.
'Prices at the mines In Great Brit
ain" he said, ARE about three times
the mine prices prevalent In the United
States In France the mine prices are
more than three and a half times those
of the United States. English mine
prices range from 1894 to STA per
tor, while bltuminous coal In France IL
costing about $978 per ton at the
mines. The average mine price Of bi.
luminous coal sold In the United
States Ii In the neighbOrhood OF S2-A0
Der ton" !!