Connecticut western news. [volume] (Salisbury, Litchfield Co., Conn.) 1871-1970, 1919-09-18
10 SOFT COAL
PRICE COMBINE, :
SAYS WITNESS
J. D. A. Morrow Tells Senate
Committee Such a Combina-
ton Would BE Impossible.
PRICES AT MINE LOWER
THAN LAST YEAR
Better Grades of Coal Have Advanced,
but Lower Grades Declined,
Making Average of All
Grades Less.


Washington, Especially
A combination among bituminous coal
| operators TO maintain or fix prices
does not exist and would be impossi-
BILE IL attempted. ]. d. A. Morrow, vice
president of the National Coal Asso-
citation, 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 we're a year
ago.
There are about 5000 separate COM
merical producers operating approx
mately 1000 mines from which bitumi-
nous coal is regularly shipped" Mr..
Morrow said. I'm addition, there are
some 1000 operators with about 1900
mines who begin producing and SELL
ing coal whenever the price goes up
little and offers n profit TO them.
| Thus in 1917 coal production was re-
| ported TO the United States geological
survey from 10,634 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
operators of each mining field are sub
iect 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 a
nation wide combination among btu
minous coal producers when these are
The conditions of bituminous coal pro-
duction and distribution merely adver-
tises his own ignorance or convicts
himself of deliberate and vicious mis-
statements.
"of the 5000 separate bitumInous
coal producers in the United States,
2,294, approximately As per cent. hold
membership In the National Coal As
ISOLATION. They produce about 60 per
cent of the total output Of bituninous
coal in the country.
Charges that the National Coal As
ISOLATION Is n combination to maintain
prices are without foundation in fact.
They doubtless proceed simply from
| ignorance of its purposes and actiyi-
ties. The National Coal Association
neither buys nor sells coal; neither
does II have anything whatever to do
with the prices which It's members
nsk or sell 1t, 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 i'm 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 ut which btu
minouS coal sold at the mines In diff
ferent districts of the United States
from April l 10 August |. 1919. In
connection with these charts, Mr.. Nor
row explained that when the price re-
Strictions of the fuel administration
were removed on February ! last the
better, more desirable Goals went to a
premium In the open competitive mar
ket and the less desirable Goals de-
clined in prices. i
This was the action to be expected,
he said, in market where the buyer
exercises his choice and can obtain
the kind he prefers. As n result. In
stead of the uniform prices I'm differ
ent districts, 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 IL was n year ago due TO
the fact that the mines then were operat-
ing six days a 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 in
creased costs per ton as compared with
last year. When these increased costs
are considered in connection with the
general decrease in prices IL is clear that
profits Of btuminous coal operators are
materially les than a year ago"
Referring to statements by Representa-
tAe Huddleston Of Alabama. Director
General Hines OF the railroad admins
tration and others TO the effect that
! bituminous coal prices at the mines ara
unduly high, Mr.. Morrow said:
II wish to deny publicly and emphat-
ically these allegations that bituminous
coal prices are being maintained in some
! improper manner and are unduly high
am convinced that these statements pro-
coed simply from lack OF understanding
| of the facts"
/ Mr.. Morrow drew comparisons between
tho prices Of bl:uminous Goals at the
mines in the United States and foreign
! countries.
Prices at the mines in Great Britain"
he said, are about three times the mine
| prices prevalent I'm 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
$6.s4 to S7l4 per ton, while btuminous
| coal In France is costing about S. &c per
ton at the mines. The average mine
! price OF bitumiaous coal sold In the
United States IS in the nefghborhood Of