Capital journal. (Salem, Or.) 1919-1980, 1921-01-03
Orders for Millions of
Tons of Coal Cancelled
When Market SLun1bS

I4llSpuiSH, Jan. D. Inc sudden
collapse of the coal market in the
last two weeks has resulted in the
cancelling of contracts for millions
of tons of soft coal made by for
eign buyers with operators in
Western Pennsylvania and North
ern West Virginia. 1t is the most
disastrous slump ever known and
the market is pretty well demor-
allied.
The price of export coal has
been broken from the extreme
high of $14 n ton several weeks
ago to around $3.50 a ton today,
and in some instances even lower
than that. Demand is very light.
Now the producer hunts the buyer
Formerly the buyer went hat in
hand hunting producers who could
sell him coal at almost any price
they might demand.
Bankers attribute the unsettled
international credit situation, in-
proved railroad transportation and
increased coal production asi re-
sponsible for the present situation
Operators say the situation can
not become much worse or there
win be suspension of production
as they cannot mine coal under
SO a ton.
Pool "a, the grade of coal for
which there has been an unprece-
dented demand by exporters dur
ing the last six months, is now
drug on the market. This coal
is mined in Western Pennsylvania
and West Virginia. Inquiries re,
ceived by local operators indicate |
that the export buyers are devot-
ing their attention almost eXclus-
lively to the Pocahontas (W. Va.) |
grade of fuel known to the trade |
as Pool No. l and 2
Contracts for about 5000, 900 |
tons of this coal were reported
signed in Pittsburgh early this
week by the French and Italian
governments at price of $S25
and sS.75 a gross ton. tidewater
The contracts cover a long period
as to delivery.
Take Huge Loss.
orders cancelled for the So
called Pool "a coal mean loss of
500, 100000, according to the es-
innate of one Pittsburgh operator.
The tremendous break in the coal
market recalls the boom days in
he early stages of the World War.
Within radius of seventy-five
niles of Pittsburgh is the greatest
'oft coal producing centre in the
world. There are thousands of
mines, big ard little Along about
916 and 1917 the demand was
en- times the supply. Men who 4,
NEW something about the coal
-ame, and some who didn't, made
in those days. They dug
lp a horse or two and a wagon 4
nd opened up a one-man mine
longside of some hill. 1t was a
ommon thing for these one-man
1ine outfits to clean up 500 to
$50 a day. Nobody disturbed
hem. They were looked upon as
laying a piker game by the big
GAL producing outfits. Anybody
hat could produce a pound of coal
1und twenty buyers for every ton
e could produce. The little fell
,ws rolled in wealth quickly. Some
ere enterprising and soon some
the one man mines developed
ito two and three and even half
dozen men mines and the profits
ere enormous. Though they were
realty handicapped for lack of g
iodern labOr-saving devices. the
tile fellows made fortunes with
leir teams hauling coal to the
lilroads and loading one car at
time Through western Pennsyl-,
mia there are hundreds, Drobab-
thousands, who amassed good
zed fortunes during the boom
lys in coal.
Then the big operators later shut
,wn on the little fellows and
ueezed them out. The last straw
me when, after long and bitter
sht, the Pennsylvania Public Ser
ce Commission ruled that mines
at didn't have tipples Ooading
utes) couldn't get cars.
But those who saved their
oney in the boom days need not
'rry for the rest Of their lives.
ley will have enough.
Now it is the turn Of the big
Oducers TO be squeezed and
ueezed hard. Coal n s3.5O
] is virtually back to pre-war
ices.