Evening star., 1921-03-22
MARKET DELAYS
CANAL OPENING
c. & O. Suspends Plans to
Operate Until Coal Situa-
ton Is Settled.

Unsettled conditions in the coal
market today caused the Chesapeake
and Ohio Canal Towage Company to
suspend indefinitely plans for opening
the canal for the 1921 season.
First coal boats of the year bound
for Washington were to have been
cleared from Cumberland, Md, Mon
day. Local orders for deliveries did
not develop to the extent expected.
The company met yesterday afternoon
and decided it would be better to de-
lay the Inauguration of traffic over
the canal than to bring cargoes to
Washington on an uncertain market.
Manager G. L. Nicholson of the
towage company kept the wires to
Cumberland busy today with orders
the canal. Farmers with mule teams
were headed from many directions
for the Maryland terminus of the
waterway. where Monday they would
have become full-fledged boat cap
tains. Runners were sent out this
morning to turn them back, with in
structions to wait for further orders.
Company officials would make no
predictions as to when traffic would
start. saying the situation would be
governed entirely by siness devel.
coal. in common with coal buyers
generally, are said to be delaying
placing of contracts for annual deliv4
cries because slackened business has
reduced their fuel needs, and present
spot market prices are more attrac-
tive than contract prices.
Coal Could BE Sold.
While much coal that might be
transported over the canal now un-
doubtedly could be readily disposed
of, the company, it was stated, felt
it would work a hardship upon the
boatmen and their crews to subject
them to the possibility of losing time
on the trips. A boatman's pay is at
the rate OF 20 cents a ton, and, when
no unusual delays are experienced, 1t
is possible for him. to make better
than an average of two round trips a
month.
1t is the intention, when the canal
finally opens. to place in operation
only sufficient number of boats to
meet tonnages actually contracted for,
so that crews may get the advantage
of full-time operation.
The action of the canal towaRe COM
pany brought to light today elements
in the general coal situation which are
giving much concern to the govern
ment, operators and business men gen.
orally.
the situation sufficiently to forecast
with any degree of certainty what
the next few weeks or months may
bring forth in the coal market. A
roundup of the opinion of govern
ment officials. and dealers indicates the
following as being the OUTSTANDING
facts in the situation.
Facts I'm Situation.
First-The normal consumption of
coal has fallen from 100000 to
100000 tons a week.
Second-General business depression
is responsible for this reduction.
Third-Buyers are holding off on
placing contracts because they look
for further price reductions.
Fourth-Small operators are doing
the principal business, which is SPOT
business.
The government is handicapped at
present, it was pointed out, in ascer-
tanning what it costs to load coal on
the cars at the mines.
Several months ago the Federal
Trade Commission sent out a ques-
tionnaire to operators seeking infor-
nation on this point. Some mines
responded, but others challenged the
commissions right to require such
Supreme Court obtained a temporary
restraining order. which put an end
to the inquiry. This case has not
been finally disposed of by the court
Fair Prices Only Guesswork.
Inasmuch as the bureau of mines
and the geological survey collect and
disseminate information applying only
to the production and Transporting OF
coal, the question of costs is now
practically neglected. For this rea-
son government officials are able to
make only guesses as to whether
prices now charged represent a fair
or unreasonable profit on the actual
cost of mining coal.
Before the war the average price
obtained for bituminous coal at the
mines was said to be $1.15 per short
ton. During 1918 the average price,
according to government compila-
tions, was $2.5s a short ton. The
average price now is thought to be
about SO.
Word reaching the local coal trade
is to the effect that production in the
Logan field in West Virginia il now
but 80 per cent of normal and that a
group of mines on the Chesapeake and
Ohio railroad. capable of producing
two and one-half million tons annu-
ally. have not operated at all since
December Is. The railroads Of the
country. on account OF reduced ship
ments of general commodities, are
said to be burning only about so per
cent Of tho coal thew reouuire n pnr-