Evening star., 1923-10-20
BY ROGER w. BABsoN.

Special Dispatch to The Star.
WELLESLEY HILLS. Mass. Octo-
Der 2O.-There seems to be plenty of
coal
"A year ago this country was
emerging from the chaos of the great
Dltuminous coal Strike of 1922. The
output for practically five months.
April through August, was held on a
minimum level As a result, the to-
tai production of bituminous coal last
year was the smallest in twelve years
Not only We're stocks of coal low, but
transportation facilities were unable
to meet the urgent demand from
manufacturing interests. 1t was diff
ncult to obtain prompt and adequate
deliveries. CotAequently prices of
coal scared and remained high dur
ing the fall and early winter period.
MInIn= Rate Very High.
The average price of soft coal in
october. 1922, was S4.4O per ton at the
mlne-a level of 266 per cent over the
pre-War average. Today, we find con-
trary conditions. y strike this year
was avoided and production held on
practically a record basis. During the
ilrst $50 working days of this year,
the output has exceeded 4l3, ,435, 600
tons. against 27l,015,000 tons during
the same period last year. In fact,
We have produced more coal to date
than was brought to the surface dur
ing the entire twelve months of 1922 the
exact figure for last year being 407,-
S94, 900 tons.
Incidentally. the output this year
has been exceeded only once in the
history of this country; that was in
1918, when 579.3S5,000 tons were pro-
duCed. 1t is not surprising in view
m lf.y { "A
stocks of bituminous coal have
Jumped. Statistics show that on Sep
tember l stocks Were estimated at
$4,000 600 tons, or the highest volume
since April. 1922. Present stocks rep
resent an increase of 35 per cent over
the low last March and 500 per cent
over year ago.
Price Level Pulled Down.
The effect of excessive soft coal
productions large and increasing
stocks, diminishing. industrial de
mand and relatively favorable rail-
road conditions has been pulling the
price level down month after month.
With little interruption, prices have
continued downward since August,
1922. Today. the price at the mines
IS approximately S2.40 per ton or 100
per cent over pre-waT levels, com
pared with 266 per cent year ago.
Economically, there cannot be FUR
ther marked price decline In fact.
conditions point toward 4 firm price
level over the fall and winter months.
We are now entering the period OF
maximum consumption and the GUS
tomary seasonal strain on our rail-
roads. Stock protection over the fall
and early winter period should not
be postponed.
Securities Already High.
SO far as the securities of coal com
panies are concerned, there is no oc-
casion for any one to become optim-
istic. To be sure. in the list OF stocks
and bonds of companies representa-
tive of the soft coal industry, there
Is wide variety. The stocks of the
older and better known companies
are, by no means. low in price. In
view of the general trend in the spec
ulative markets, there is no incentive
for purchase For the long pull,
stockholders must bear the brunt of
the struggle, which the industry faces
a gainSt the pressure OF rising costs
through union demands on the one
hand, and d condition Of overproduc-
tion combined with increasing favor