Norwich bulletin., 1920-07-21
Asks Restriction
 of Coal Exports
Fuel Administrator Storrow Says It Would Tend to Bring Coal Prices Back to Normal and Supply N. E.

New York, July 20-The coal shortage in New England and other sections of the east can be relieved only by government restriction of exports, James J. Storrow, fuel administrator for Massachusetts, told the special senate committee on recon struction, and production at the opening of the hearing here today.
 "A reasonable" restriction on exports, Mir Storrow declared would tend to bring coal prices back to normal and put a stop to, profiteering. Methods similar to those followed by the British government, which puts the protection of it's own peo- pie above the interest of the exporter 7 he said, would promptly relieve the seri- ous situation in New England, New York and other eastern states.
 The situation in the east, he said, be- came serious following the railroad strike in April, when, after the removal of govr eminent control, exports from tidewater increased about 100 per cent. The large exports, he pob4Fl out, are taking away New Englands coal from Hampton Roads and New England buyers are forced into Pennsylvania fields ill competition with New York, New Jersey and other eastern states, thereby causing a shortage in the New England states.
 The order of the interstate commerce commission, restricting the use of open top car equipment for coal transportation. did not help New England, he asserted, as no increase in car supply is necessary there. The commission, MT. Storrow de- clared, should have put into effect an or der restricting exports before issuing the open top order.
 Excessive and unrestricted" exports of coal caused "skyrocketing" of prices, he told the committee. During the war the price was fixed at about S3 ton and ,5 cents a ton was considered a fair nor mal profit, he said.
 Probably so ner cent of the output of the eastern fields is being sold on con tracts, most of them probably at S450 or less" he said. "The price of spot coal is now from S11 to S14 ton. Coal sold recently at s23 in Boston harbor. This means that profits have increased on a basis say of S11.50 ton, from 25 cents to $7 ton, or an increase in profit of 2,S00 per cent. This means that coal op- orators are taking excessive profits from the American people at the rate of at least S350.000,000 a year, assuming that only 20 per cent. of their output is being sold in the spot market"
 Many customers who fully covered their years requirements at normal prices of S4 or S4s50, he said, are unable now to get coal shipped on their contracts, but ind themselves able to obtain plenty oi coal by paying s11 or SIP at the mines.
 This means, MT. Storrow asserted. that thousands of cars of coal are being held in terminals and on sidings for reconsign. ment by speculaters. The condition is SC serious, he said, that a railroad oficial recently broughL<p.5o the attention of the interstate commerce commission and stat ed the practice ought to be discontinued in order to increase car supply.
 The committee will continue it's hear ing tomorrow, c. F. McGee, state fue administrator of Minnesota, is expected .tc testify to conditions in the northwest. Replying to question of Senator Cal der. Mir Storrow testified that while American concerns are paying high price. 1 for coal, foreign concerns are advertisin, | millions of tons of American coal for sal, 1 and immediate delivery abroad. He reat l an advertisement from an Italian news paper in support of his statement. H, l said he had heard also that the Egyptian | state railways are being operated witt American coal.
 1 The interstate commerce commission 1 order, which was expected to cut off ex l ports and give New England priority or shipments, MT. Storrow declared, hac i been found worthless.
 1 As far as 1 know it hasn't cut of exports single carload he said. l The words of the order New Englanc ] points shall be given a priority and nref
 erence in the supply of cars" MT. Stor l row testified, have been found in practic I to mean nothing"