The daily morning oasis., 1919-08-31
j. D. A. Morrow Tells Senate
COMMITTEE Such Combina-
tion Would Be Impossible.
PRICE At MINES
LOWER THAN LAST YEAR
Better Grades Of Coal Have Advanced
But Lower Grades Decline, Making
Average Of All Grades Less.

Washington (SpeciaD.-A combina-
ton among bituminous coal operators
to maintain or fix prices does not eX-
list and would be impossible if attempt
ed, J. d. A. Morrow, vice president of
the National Coal Association, told the
Senate Subcommittee in it's 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 approx
mately seven thousand mines, from
which bituminOuS coal is regularly
shipped" Mr.. Morrow said. SIN addi-
ton there are some two thousand OPP
orators with about three thousand
mines, who begin producing and sell
ing coal whenever the price goes up a
little and offers profit to them. Thus
in 1917 coal production was reported
to the United States Geological Survey
from 1854 mines. Moreover, there
are hundreds of thousands Of acres Of
coal lands along railroads on which
new mines can be readily and quickly
opened by anyone so disposed.
"Such a 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 produc-
ers of other fields, so that buyers
have many different sources of supply
available to them.
Anyone who alleges that there is
a nationwide combination among BIZ
luminous coal producers when these
are the conditions of bituminous coal
production and distribution, merely ad-
vertises his own ignorance or cOnvicts
himself of deliberate and vicious mis-
statements.
"Of the five thousand separate BIZ
luminous coal producers in the United
States, 2,294, approximately 45 per
cent, hold membership in the National
Coal Association. They produce about
60 per cent of the total output Of BIZ
luminous coal in the country.
Charges that the National Coal AS
sociatiOn is a combination to maintain
prices are without foundation in fact;
they doubtless proceed simply from ig-
norance Of its purposes and activities.
The National Coal Association neither
buys nor sells coal; neither does it
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 bituminous
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 bitum-
inous coal sold at the mines in differ
ent districts of the United States from
April 1 to August 1, 1919. In connec-
tion with these charts, Mr.. Morrow ex-
planned that when the price restric-
tions of the fuel administration were
removed on Feb. / last, the better,
more desirable Goals went to a pre-
MUM in the open competitive market
and the less desirable Goals declined in
price.
This was the action to be expected,
he said in a market where the buyer
exercises his choice and can obtain the
kind he prefers. AS a result, instead
of the uniform prices in different dis
tricts, which were fixed by the United
States Fuel administration, prices
promptly spread out, some coal going
higher and some lower than they had
been.
Meantime" Mr.. Morrow said, "the
cost of producing bituminous coal is
higher now than it was 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 over
head expense Of maintaining mines
goes on just the same whether coal is
produced or not. These idle-day eX-
penses have resulted in increased costs
per ton, as compared with last year.
When these increased costs are cOnsid-
cred in connection with the general de-
crease in prices, it is clear that profits
of bituminous coal operators are ma
terially less than year ago." !
Referring to statements by Repre-
sentative Huddleston of Alabama, Di-
rector General Hines Of the Railroad
Administration and others to the ef-
feet that bituminOus coal prices at the
mines are unduly high, Mr.. Morrow
said:
Il wish to deny publicly and emphat-
ically these allegations that bituminous
coal prices are being maintained in
some improper manner and are unduly
high. 1 am convinced that these state
ments proceed simply from 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 aboue 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. Eng
lish mine prices range from 1894 to
STA per ton, while bituminous coal in
France Is costing about $8.76 per ton,
at the mines. The average mine price
Of bituminous coal sold in the United
States is in the neighborhood Of $40
per tom"