The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1919-09-05
No. SOFT COAL
PRICE COMBINE. I.
SAYS WITNESS
v. a. bOTrow Tells Senate Committee
- such 4 Combination Would Be
:, impossible
PRICES AT MINES LOVER THAN
LAST YEAR
Sefter Grades Of Coal Have Advanc-
ed, But lower Grades Declined,
Maklts Average Of All
Grades Less

Washington. (SpeciaL)-A comhi-
nation among bituminous coal opera
Tors to maintain or fix prices does
not exist and would be impossible Il
attempted, J. D. A. Morrow, vice pres
'dent OF the National Coal AssOcia-
ton, told the senate Subcommittee N
its first days inquiry here into Tie
coal situations Prices at the nine,
MI. Morrow added, have declined u
der the competition which prevails
and are lower now than they were
year ago.
e. Where are about 5000 separate
commercial producers operating az
proxlmately seven thousand mines,
from which blturninous coal is reg
iarly shipped" Mr.. Morrcw said IN
addition there are some two thea
sand operators with about three thou
sand 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 GeOlCgi-
cal Survey from 1854 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
disposed.
Such a condition obviously does
not lend itself to- restrictive combina-
tons among producers. In addition
the Operators of each mining field are
subject to competition from the pro
ducers Of other fields, SO that buyers
have many different sources Of sup
ply available to them.
"Of the five thousand separate BIZ
luminous coal producers in the United
States, 1894, approximately IS per
cent, hold membership in the National
Coal Association. They produce about
+. sixty per cent of the total output of.
bituminous coal in the country.
g. Charges that the National Coal AS.
soeiation is a combination to maintain
prices are without foundation in fact
they doubtless proceed simply from
ignorance of its purposes and activi-
ties. The National Coal Association
neither buys nor SELLS coal; neitheTs
does 1t have anything whatever to do
with the prices which it., 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 btu
minous coal sold at the mines in diff
ferent districts of the United States
from April / to August l, 1919. In
connection with these charts, Mr.. Nor
row explai-ed that when the price OF
restrictions OF the fuel administra'
ton were removed on February / last
the better, more desirable Goals went
to q premium in the open competitive
market and the less desirable Goals
declined in price.
AS a result, instead Of the uniform
:. prices in different districts, 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 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
Ia produced or net. These idle-day ex'
Denses have resulted in increased costs
Der ton, as compared with last year
When these increased costs are CON
adhered in connection with the general
decrease in prices, it Is clear tnai
nrofits of bituminous coal operators
are materially less than year ago."
Referring to statements by Repre-
sentative HuddlestOn OF Alabama, III
rector General Hines of the Railroad
Administration, and others, TO the Ell
feet that bituminOus coal prices al
tho mines are unduly high, Mr.. MOI
row said. 81 wish to deny publicly
nnd emphatically these allegations tna'
bituminous coal prices are being main,
tanned in some improper manner ana
are unduly high, am convinced that
these statements proceed simply from
lack of understanding of the facts
MIR. Morrow drew comparisons De
.ho ,oricas of bituminOuS Goals
nj the mines in the United States ano
foreign countries. n.
prices at the mines in Great Brit,
.io he said. "are about three times
the mine prices prevalent in the Unit.
ID states; in France the mine prices
are more than three and half times
those Of the United States English