Daily capital journal. (Salem, Oregon) 1903-1919, 1919-09-12
no SOFT COAL
PRICE COMBINE,
SAYS WITNESS
J. D. A. Morrow Tells Senate
Committee Such a Combina-
tion Would be impossible.
PRICES AT MINES LOWER
THAN LAST YEAR
Better Grades Of Coal Have Advanced
But Lower Grades Declined,
Making Average for all
Grades Less.

washington (Speclal)-A com D1na
| tion among bituminous coal operator
to maintain or fix prices does not exis
and would be impossible if attempted
J. D. A. Morrow, vice president of tn,
National Coal association, told tn,
senate subcommittee in its first day.
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 year ago.
There are about 5000 separate com
mercial producers operating approx
mately seven thousand mines, from
which bituminous coal is regularly
shipped" Mr.. Morrow said. "In add
tion there are some two thousand
operators with about three thousand
mines, who begin producing and sell
ing coal whenever the price goes up
a little and offers profit to them.
Many Sources Of Supply Available.
Such condition obviously does not
lend itself to restrictive combinations
among producers.
Anyone who alleges that there is a
nationwide combination among btu
minuous coal producers when these
are the conditions of bituminous coal
production and distribution, merely
advertfses his own ignorance or con
victs himself of deliberate and vicious
misstatements.
"Of the five thousand separate btu
minous coal producers in the United
States, 1924, or approximately As per
cent, hold membership in the National
Coal association. They produce about
SO per cent of the total output of btu
minous coal in the country.
Charges that the National Coal as
sociation is combination to maintain
prices are without foundation in fact:
they doubtless proceed simply from
ignorance of it's purpose and activities.
The National Coal association neither
buys nor sells coal; neither does it
have anything whatsoever to do with
the prices which it's members ask or
sell at, nor with the territory into
which they ship their coal, nor the
quantity which they produce"
Prices Have Declined Since Armistice.
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 graphi-
cally showing the prices at which btu
minous coal sold at the mines in differ
ent districts of the United States from
April to August 1, 1913 In connec-
tion with these charts, Mr.. Morrow ey-
planned that When the price restric.
tions of the Fuel administration were
removed on February last, the
better, more desirable Goals went to a
premium in the open competitive
market and the less desirable GOALS de.
clined in price.
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 a result in
stead of the uniform prices in 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.
Cost of Production Higher.
Meantime" Mr. Morrow said, THE
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 a week and il,
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 wheather coal
IS produced or not. These idle,day ex-
penses have resulted in increased cost
per ton, as compared with last year.
When these increased costs are con.
sidered in connection with the general
decrease in prices, it is clear that
profits of bitumincrs coal operators
are materially less than year ago."
Referring to statements by Repr,
sentative Huddleston of Alabama
DirectorGeneral Hines of the Railroat
and others to the effect
that bituminous coal prices at the !
mines are unduly high, Mr.. Morrow |
said
Foreign Mine Prices Compared.
Il wish to deny publicly and EN-
Dhatically these allegations that btu
ninous coal prices are being main |
tained in some improper manner and
are unduly high. am convinced that |
'hese statements proceed simply bom
; lack of understanding of the facts"
Mr., Morrow. drew comparisons be- |
-ween the prices of bituminous Goals |
It the mines in the United States and
foreign countries.
Prices at the mines in Great |
Britain, he said. Are about three
lines the mii.e prices prevalent in the
Unite States: IN Fraace the mine |
prices IRE more than three and a half |
lines those of the United States.