The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-09-08
NO SOFT COAL
PRICE COMBINE,
Says WITNESS
j. D. A. Morrow Tells Senate
Committee Such a Combina-
ton Would ue 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. (SpeClal "A Comiwn
alton among bituminoCs coal opera"
tors to maintain or fix prices does
not exist and would be impossible il
attempted, J. b. A. Morrow, vice pres
ident of the National Coal Association
told the Senate subcommittee in Its
first days inquiry here into the coal
situation. Prices at the mine, MI.
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-
from which bituminous coal is reg
ularly shipped" Mr.. Morrow said, I'm
addition there are some two thou
sand operators with about three thou
sand mines, who begin producing and
selling coal whenever the price goes
up little ana offers a profit to them.
Thus, in 1917, coal production was re-
ported to the United States Geologic
al Survey from 1864 mines. More
over, there are hundreds OF thousands
of acres of coal lands along railroads
on which new mines can be readily
and quickly opened by any one so dis
posed
such a condition obviously does
not lend Itself to restrictive combina-
ton among producers. In addition,
the operators of each mining field are
sutgect to competition from the pro-
ducers of other feds, so that buyers
have many different sources of sup
ply available TO them.
ANY one who alleges that there is
a nation wide combination among BIZ
luminous coal producers when these
are the conditions of bituminous coal
production and distribution, merely
advertiscs his own ignorance or CON
victs himself of deliberate and vicious
nisstatements,
"Of the five thousand separate BIZ
luminous coal producers in the United
States, 1924, approximately As per
cent, hold membership in the National
Coal Association. They produce about
sixty percent Of the total output Of
bituminous coal in the country.
Charges that the National Coal
Association is a combination to main
ain prices are without foundation in
fact They doubtless proceed from ig-
noranco of its purposes and activities
The National local Association neither
buys nor sells coal: neither does it
have anything whatever to do with
the prices which its members ask o.
sell it, nor With the territory into
which they ship their coal. nor the
quantity which they produce"
Mr.. Morrow stated that hituminCus
coal prices have declined since the
armisticc, and in general are lower
than the price fixed by the United
States Fuel administration.
He submitted charts to the com
mttee graphically showing the
prices which btuminous coal sold at
the mines in different districts of the
United States from April to Au
gust l, 1919, in connection with these
STARTS, Mr.. Morrow explained that
when tho price restrictions of the
fuel administration were removed or
February l last, the better, more de.
sirable Goals went to premium 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, in
stead of the uniform prices in differ
ent districts, which were fixed by
the United States Fuel Administra-
ton, prices promptly spread out,
some coal going higher and some
lower than they had been.
M NJorYo-,, eo;J GG3h,>
cost of producing bituminous coal is
higher now than it 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 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 the increased
costs per ton as compared with last
year When these increased costs
are considered in connection with the
general decrease in prices, it is clear
that profits of Bituminous coal oper
ators are materially less than year
ago"
sentative IIuddleston of Alabama,
General Hines Of the Rail
road Administration and others to
the effect that Bituminous coal prices
at the mines are unduly high, Mr..
Morrow said
81 wish to deny publically and en-
phatically these allegations that
coal prices are being
maintained in some improper manner
and are unduly high. 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 Uni
ted States; in France the mine prices
are more than three and half times
those of the United States. English
mine prices range from 1894 to STA
per ton while Bituminous coal in
France is costing about $8.76 per ton
ut the mines. The average mine
price of Bituminous coal sold in the
i1