The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1919-08-29
NO SOFT COAL
PRICE COMBINE,
SAYS WITNESS
J. D. A. Morrow Tells Senate
Committee Such a Combina-
ton Would be Impossible.
PRICES AT MINES
LOWER THAN LAST YEAR
Better Grades of Coal Have Advanced,
But Lower Grades Declined,
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 at
tempted, ]. ID. A. Morrow, vice presi-
dent 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
commercial producers operating ap-
proximately 1000 mines, from which
bituminous coal is regularly shipped"
Mr.. Morrow said. "In addition there
are some 1000 operators with about
5000 mines, who begin producing and
selling coal whenever the price goes
up a little and offers a profit to them.
Thus in 1917, coal production was
reported to the United States Geo.
logical survey from 1854 mines.
Moreover, there are hundreds of thou
sands of acres of coal lands along
railroads on which new mines can be
readily and quickly opened by any one
so disposed.
Such a condition obviously does
not lend itself to restrictive combina-
lions among producers. In addition
the operators of each mining field
are subject to competition from the
producers of other fields, so that buy
ers have many different sources of
supply available to them.
Denies Combination Exists.
"Any one who alleges that there is
a nation wide combination among btu
minous coal producers when these are
the conditions of bituminous coal pro-
duction and distribution, merely ad-
yertises his own ignorance or con-
victs himself of deliberate and vicious
misstatements.
"Of the 5000 separate bituminous
coal producers in the United States,
1924, approximately As per cent, hold
membership in the National Coal AS
ISOLATION. They produce about 60 per
cent of the total output of bituminous
coal in the country.
Charges that the National Coal AS
ISOLATION is a combination to maintain
prices are without foundation in fact;
they doubtless proceed simply from
ignorance of it's purposes and activi-
ties. 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
Says Prices Have Declined.
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 at which bit
luminous coal sold at the mines in diff
ferent districts of the United States
from April / to August 1, 1919. In
connection with these charts Mr.. Nor
row explained that when the price
restrictions of the Fuel Administra-
tion were removed on February ! last,
the better, more desirable Goals went
to a premium in the open competitive
market and the less desirable Goals
declined in price.
This was the action to be expect
ed, he said, in a market where the
buyer exercises his choice and can
obtain the kind he prefers. AS a re-
suit, instead of the uniform prices in
different districts, which were fixed by
the United States Fuel Administra-
ton, prices promptly spread out, some
Goals going higher and some lower
than they had been.
Declares Production Cost Higher.
Meantime Mr.. Morrow aid, "the
cost of producing bituminous coal is
higher now than 1t was a year ago, due
to the fact that the mines then were
operating six days a week and in man.
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
with last year. When these increased
costs are considered in connection with
the general decrease In prices, IL Is
operators. are materially less than a
Referring to statements by Repre-
rector enera Hines of the Railroad
Administration and others. to the effect
that bituminous coal prices at the
Il wish to deny publicly and emphat-
i cnal these these aalega be,n that bitqrainop US
high. / am convinced that these state
ments proceed simply from a lack OF
III understanding 0f the facts