Evening star., 1924-05-28
PROSPECT FOR COAL
INDUSTRY IMPROVES
Outlook in Bituminous Field, How.
ever, Held Long Way From
Satisfactory.
LARGE CONTRACTS SCARCE
Anthracite Regarded as Facing
Much Better Stu
alton.
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, May 28.-The outlook
for coal seems to be Frightening, but,
according to men in close touch with
the industry, the bituminous markets
still have a long way to go before
they are satisfactory either to mine
owners or mine workers The i'm
provement in the bituminous markets
so far has been largely in tone and
in the number of inquiries for. tom
mage, although some few contracts
for fairly large amounts recently
have been placed in Pennsylvania and
Ohio.
The bituminous coal industry in
both the east. the middle west and
the south is closely allied with iron
and steel and Indications that the
latter commodities were scraping
rock bottom, with better demand in
prospect shortly, is encouraging to
coal men. Bituminous prices have
touched such low points that 1t is
felt that Improvement in demand will
be reflected promptly in betterment
of prices. and many mine owners who
have had their properties closed
down are preparing to reopen them
in order to reap full benefit of the
rise when IL comes.
Production Mt Low Ebb.
Production now is at a low ebb In
Pennsylvania the bituminous prop
critics which ship by water route are
working about 45 per cent of full
time. while those of rail routes have
In Illinois well over 100000 miners
are believed to be out Of work or
working only a small percentage of
full time. Hundreds of mines in Ohio
and other parts of the middle west
are closed entirely.
The latest large coke contract, call
ing for delivery of 10000 to 10000
tons of Connellsville coke during
June, July and August, was made at
less than $3.50 a ton. This compares
with S4.25, which is the figure at
which current contracts for the Sec
ond quarter of the year were made
last January and February. Coke men
say II is impossible to produce coke
at $3.50 unless wages are reduced,
and some wage cuts already have
taken place in Pennsylvania.
These brought wages to the 1917
scale. \ cut of about 20 per cent.
with consequent reduction in coke
prices by the Lincoln Coal and Coke
Company, however failed to produce
business and the company closed its
ovens.
Reserves Being Absorbed.
January and February of this year.
which was larger than for any other
similar period in the past, amount
ing TO 92.000,000 to 96,000,00O tons,
respectively, is now being absorbed
and the statistical position has been
aided by the fact that production in
some recent weeks was lower than
at any time since the depression of
1921
A good many consumers are com
m encing to feel that to delay placing
orders for supplies much longer may
be dangerous and consequently are
putting out inquiries for tonnage at
figures which they still consider ad-
vantageOus. Just at present there is
no high pressure in the manufacture
ing or railroad industries, which con-
stitute the bulk of the coal con-
sumers. Later, however, the most
accurate authorities believe activity
will increase and in some cases it
may be found that coal reserves are
dangerously low. Such a condition
undoubtedly would lead to a sharp
provement in the number of miners
at work.
Increase In Shipments.
Already the coal situation in De-
troit has improved to such an extent
that the Ford Company plans in
creasing its coal shipments and ex-
panding the weekly schedules at its
lfpin TWO ID three DAYS
week. All the Ford mines now are
operating to some extent. Coal
prices In the northwest show signs
of stiffening and wholesalers in that
section are encouraged over the out
look.
The anthracite mines are facing no
such depressing situation at the
bituminous properties. The usual
summer reduction in prices at the
mine and at the consumers bin have
served to stimulate domestic demand
and the mines are running actively
with output. and especially the So
called domestic sizes being well abb
sorbed.