The New York herald., 1922-07-27
ROADS GREET FUEL
ORDER AS A RELIEF
Saves Embarrassment I'm
der Threat of PrOfiteer-
ing, Says Wilbur.
PRICES ARE SOARING
Coal Age Predicts Levels
That Will Leave Con-
sumer Helpless.
STEEL DIFFICULTY SEEN
Lack of Priority Disturbs In
Observation-Disclosures Opti-
mistic on Utilities
STEEL DIFFICULTY SEEN

was an expression Of relief by the
railroads from embarrassment in the
handling and forwarding of fuel. An
Improvement in the coal movements
in the Northwest will follow the order.
said l.. r. Loree. president Of the
Delaware and Hudson.
The steel industry. listed in an un-
preferred fifth class along with gen.
eral industry. predicted difficulties.
When priority orders were in effect
during the war the iron and steel in
dustry was classed as one Of the most
necessary, and was one of the first to
receive ITS allotments OF fuel.
John G. Walber of the Eastern rail-
roads information bureau, said yester-
day:
primarily by the railroad situation.
They resulted from the situation In coal
and were aimed to prevent coal profiteer-
ing and to keep bidders from going In
and grabbing available supplies. and to
see that GOAL went where It was most
needed. AS far as the roads are con-
cerned the orders will relieve them Of
good deal of embarrassment"
Prendergast Returns.
William A. Prendergast. chairman of
the Public Service Commission. who
headed the committee that went to
Washington at the suggestion Of Gov.
Miller to confer with the Federal au-
thorities. said on his return yesterday
that the committee was impressed with
the evident intention Of the Government
to protect the public interests in every
possible way.
The committee members talked with
Secretary of Commerce Hoover, Chair
man McChord Of the Interstate Com
merce Commission and with members of
the Shipping Board in an attempt TO learn
the situation with respect to the coal
supplies held by various public utilities.
This necessity had been anticipated, Mr.
Prendergast said. and the work was ia
cilitated by the cooperation OF organi-
cations representing the utility COM
panies. The committee would not give
in handling the coal situation Chairman
Prendergast indicating that they would
have to be announced from Washington.
Prices Soaring.
Meantime, according to a review by
the Coal Age, prices are soaring to new
levels with a speed that is calculated
to take consumers breaths away. The
review says:
Consumer demand Is now centered
on a very small tonnage, for of the coal
that Is getting over the strike paralyzed
rails large portion is going on short.
and to lesser extent long, term con-
tracts. The majority of the spot coal
reaching the market Is priced at the
level pegged by Secretary Hoover, and
II Is smaller portion that'is rising to
the bait of the long green held allur-
ingly before the eyes Of the operators
by the hungry buyer.
TO make as effective as possible
what little coal Is trickling through the
rail strike lines. and to hold down the
price the Government at Washington is
working out a scheme Of rationing and
price control that Is planned to go into
effect this week. The railroads and
utilities are to be the first to get coal
with certain other essential industries.
further. for the needs of some Of these
are becoming increasingly urgent
Regarding the effect of the priority
order on the iron and steel industry the
Iron Age In Its current issue says:
An immediate effect, assuming that
coal begins to move at once to the pre-
ferred classes, would probably be to
take up most OF the soft coal output,
estimated at 100000 tons this week.
leaving steel and other industries to de-
pend to large extent upon their stocks.
These represent in most cases not more
than a thirty days supply"
The Iron Trade RevictD to-day saws
that resort by the Government to prior
ity regulation of coal movements prom
ises to Increase operating difficulties for
the iron and steel industry. already
sorely hampered for lack Of fuel.
The shipping DinicuIty.
New York Central Railroad officials
said yesterday the road had large re-
serve stocks Of bituminous coal and that
their sidetracks were clogged with II.
In other emergencies" a statement said,
"other public utilities have been able 10
draw upon the New York Centrals pri-
vate supply for relief purposes"
Shipping men said that the priority
order would have little effect upon ship
ping trade from this port since the coal
export trade has been In bad way for
several months. The larger lines, with
regular sallings and scheduled steamers
have n certain amount OF regular freight
business Of which they are sure. The
tramp ships have been in difficult
straits for some time In picking up berth
cargoes and this order of the Interstate
Commerce Commisson will mitigate
against them more heavily than It will
affect the larger lines.
What Il reilly worrying the shipping
men to-day is the fact that with the
arrival of the British coal on some sixty
three chartered vessels which will begin
to get here within the next few weeks
there will be more than million tons
Of excess shipping on the market for
carsoes to take back and very little In
the way OF eastbound shipments on hand
| or obtainable. Rates between this port
and Europe will drop into nothingness
as the shipping tonnage increases here,
| IN apd ,t.t