The New York herald., 1922-01-17
The Coal Market Collapse.

1t might be assumed that consum-
ers Of coal for industrial purposes
would lay in extra supplies now In
anticipation of threatened strikes at
many of the mines on April l over
the, new wage scales. which must be
negotiated before then. Apparently
they do not care whether there is
supply or not so long as prices
demanded for some of the coal stay
up. This would indicate that present
costs in part OF the coal fields are
so prohibitive Of business dependent
upon coal that unless the wage read
iustments permit fuel price readjust-
ments they do not expect to be any
more interested in supply next spring
than they are this winter.
The way the bottom fell out Of the
coal business in December ought to
be convincing proof to mine opera
tors and mine workers, not to men,
tion the railroads which haul the
coal, that something drastic needs
to be done in this matter of reduc-
ing excessive bituminous costs, and
needs to be done now. In the whole
year of 1921 the total production in
the bituminous fields was 407, ,O00,0
tons, as against 556,00O,0O0 tons in
1920. But in the last week of Decem-
ber the output was only 100000
tons, as against 11,53O.eOO tons in
the corresponding week Of 1920.
Even anthracite shipments col
lapsed in the last month of 1921.
Only about 100000 tons were
shipped, as compared with 100000
tons produced. The drop in volume
as compared with December, 1920,
was upward of two million tons.
Cold facts which both operators
and workers must face in the bitumi.
nous situation are that under normal
conditions the production is divided
ducers and half to the non-union pro.
ducers, and as the production costs
have been kept up at war imitation
levels in the fields where the hard
and fast contracts still have until
next April to run, the coal orders of
the country have been leaving the
union mines and going to the non
union mines, where there have been
readjusted operating costs and tower
prices to the consumers.
With such a heavy reduction in
general consumption as there has
been the non-union supply has been
generally able to take care Of the
bulk OF what business remains. In
many fields the production Of soft
coal by union mines has not been
more than 20 per cent. of normal. In
some fields production has stopped
altogether, with tens OF thousands
of miners out of employment for
months and in deep want.
The plain truth about this situation
is that the bituminous supply Of the
country to-day is very largely pro-
duced by the non-union mines for the
reason that the higher cost product of
the union mines cannot find mar
ket. II the wage scales and other
operating costs are not readjusted in
the union fields between now and
April 1 to put them on competitive
basis with the non-union domestic
fields and foreign producers now
selling coal on our seaboards the
union mines and their union labor
will be put entirely IL not perma-
nently out of business.
Is this what organized mine labor
wants? II it is, all 1t has to do is
to sit tight on existing conditions
and It will get 1t. If it is not what
IL wants, It should be as ready and
willing as the mine owners to get
started at once on economic read.
justments that will save their bust
ness and their jobs.