The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1919-08-27
NO SOFT COAL
COMBINE, SAYS
WITNESS
!. D. A. Morrow Tells Senate Com
mlttee Such a Combination
Would Be Impossible.
PRICES AT MINE w
THAN LAST YEAR
Better Grades Of Coal Have Advanced
sut Lower Grades Decline,
Making Average of All
Grades Less.

Washington. Aug. PA combina-
ton among bituminous coal operators
TO maintain or fix prices does not ex-
list, and would be impossible if at
tempted, J. d. A. Morrow, vice presi-
dent of the National Coal association.
told the senate subcommittee in its
hrst days inquiry here into the coal
situation. Prices at the mine, Mr..
Morrow added, have declined under
the competition which prevails, and
are lower 10Y than they were a year
ago.
There are about 5000 separate
commercial producers operating ap-
proximately seven thousand mines.
from which bituminous coal is regu-
larly shipped. Mr.. Morrow said. In
addition 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 a profit TO them.
Thus IN 1917 coal production was re-
ported 10 the United States geological
survey from 1884 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 OBJ
orators Of each mining field are sub
ject TO competition from the produc-
ers of other fields. so that buyers have
many different sources Of supply avail
able TO them.
Anyone who alleges that here is a
nationwide combination among BIZ
luminous coal production and distri-
button, merely adgertises his " ig-
norance or convicts himself Of DELHI
crate and vicious misstatements.
"Of the five thousand separate bi-
luminous coal producers in the United
States, 2,294. approximately 45 per
cent. hold membership in the National
Coal association. They produce about
90 per cent of the total output OF BIZ
luminous 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
ignorance Of its purposes and activi-
ties. The National Coal association
neither buys nor sells coal: neither
does 1t have anything, whatever. to
do with the prices which Its members
ask or sell at. nor with the territory
into which they ship their coal. nor
the quality which they produce"
Nr. 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
graphically showing the prices at which
bituminous coal sold at the mines IN
different districts Of the United States
from April 1 to August 1. 1919. In
connection with these charts, Mr..
Morrow explains that when the price
restrictions of the fuel administration
were removed on February l last. the
better, more desirable Goals went to
a premium In the open competitive
market, and the less desirable Goals
declined in price.
This was the action to be expected.
be said, In a market where the buyer
exercises his choice and car obtain
the kind he prefers. As q 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.
Meantime" Mr.. Morrow satd. the
cost Of producing bituminous coal is
higher now than II was a year ago.
due to the fact that the minss them
were operating six days a week. and
in many cases now are operating 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 pro-
duced or not These idle-day expenses
have resulted in increased cost per
ton As compared with last year.
when these increased costs are con-
sfdered in connection with the general
decrease In prices. II is clear that
profits Of ~bituminous coal operators
are materially less than a year ago
Referring to statements by Repre-
sentative Fuddleston OF Alabama Dt-
rector General Hines OF the railroad
administration and others. to the ef-
feet that bituminous coal prices at the
mines are uaduly high. Mr.. Morrow
said:
Il wish TO deny publicly and en-
phaticaIly these allegations that bi-
luminous coal prices are being main
tanned 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 Unit
ed states. In France the mine prices
are more than three and a half times
those % the United States. English
mine prices range from 1884 to s7.I4
per ton at the mines. while bitumfnous
coal in France is costing about 1916
per ton at the mines. The average
mine price Of luminous coal sold in
the United States is in the n~eiEhbor-
hood Of $40 per ton
THE Cubs hopes. if they had any
A