The Lexington intelligencer., 1919-09-05
NO SOFT COAL
PRICE COMBINE,
SAYS WITNESS
]. D. A. Morrow Tells Senate
Committee Such a COmbi.
nation is Impossible.
PRICES AT The MINES
LOWER Than LAST YEAR
Better Grades Of Coal Have Advanced,
But the Lower Gradrs Declined,
Making the Average Of All
Grades Less.


Washington (SpeciaD A combi.
nation among bituminous coal opera.
tors to maintain or fix prices does not
exist and would be impossible il at
tempted. J. b. 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.. Nor
row added have declined under the
competition which prevails and are
lower row than they were year ago.
There are about 5000 separate com.
mercial producers operating approxi
mately seven thousand mines, from
which bituminous coal is regularly
shipped Mr. Morrow said. "In add.
! tion there are some two thousand op.
orators with about three thousand
mines who begin producing and sell.
Ing coal whenever the price goes up
a little and offers a profit to them.
Thus in 1917 coal production was re-
ported 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 any one so disposed.
Such a condition obviously does
not lend itself to restrictive combina.
tions among producers. In addition the
operators of each mining field are sub
1ect 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
nationwide combination among btu.
minous coal producers when these are
the conditions OF bituminous coal prod
uction and distribution, merely adyer
tises MS own ignorance and convicts
himself OF deliberate and vicious mis-
statements.
"Of the five thousand separate btu
mlnous coal producers in the United
States. 1924, approximately Is pei
cent, hold membership in the National
Coal Association They produce about
go per cent Of the total output Of btu
minous 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 tx
narance Of its purposes and activities
The National Coal Associa tion neither
buys nor sells coal; neither does 4
have anything whatever to do with thu
: prices which its members ask or sci
at, nor with the territory into which
they ship their coal. nor the quantity
which they produce"
Mr. Morrow stated that bituminou,
coal prices have declined since tn,
armlstice. and in general are lowel
than the prices fixed by the United
States Fuel Administrations, He sub
mitted charts to the committee graph
ically showing the prices which btu
minous coal sold at the mines in dif
ferent districts OF the United Statei
from April l. to August !, 1919. II
connection with these charts, Mr.. Nor
row explained that when the price re
; strictlons OF the Fuel Administrator
were removed on February /, last. III,
better, more desirable Goals went to {
premium In the open competitive mar
ket and the less desirable Goals de
clined in price
This was the action % be expected
he said. in market where the buyel
exercises mis- choice and can ohtaiV
the kind he prefers. As a result in
stead Of the uniform prices In differ
ent districts, which were fixed by In,
United States Fuel Administration
prices promptly spread out, some Goa
going higher and some lower than they
had been
Meantime" Mr. Morrow said. "th,
cost Of producing bimminous coal II
higher now than II was year ago
due to the fact that the mines thei
were operating six days week an,
IN many cases now are operating onll
four days per week and in some case
only three days per week. The over
head expense 6s maintaining mineI
goes on just the same whether coal Il
produced or not These idle.day e1
penses have resulted in increased cost
per ton. as compared with last year
When these Increased costs are con
sldered in connection with the genera
decrease in prices, II Is clear that prof
its OF bituminous coal operators ar
materially less than year ago"
Referring TO statements BY Repre-
sentative Huddleston OF Alabama. Di
rector General Hines Of the Railroal
Administration and other to the effec
that bituminous coal prices at tn
mines are unduly high" Mr.. Morroy
said
u wish TO deny publicly and emphai
ically these allegations that bltum
nous coal prices are being maintaine
! IN some improper manner and are uI
! duly high. am convinced that thes
a statements proceed simply from lac
4 Of understanding OF the facts"
Mr. Morrow drew comparisons b,
: tween the prices OF bl,uminous coal
! al the mines IN the United States an
foreign countries.
!, prices at the mines In Great Bril-
: ain" he said are about three time
the mine prices prevalent In the Unto
I States In France the mine prices AT
! more than three and a half time
!, those OF the United States Englls
mine prices range from S6,a4 70 S71
i per ton. while bitumnous coal
France is costing ahout SS.76 per 10
ai the mines The average niue pric
Of biUnllnous coal soh In the rnlte
= States ~ q, fss ist ~ tHr 10 E"
J per az