Evening star., 1925-06-17
COAL DEPRESSION
WORRIES EXPERTS
Fewer Mines and Lower Sell
ing Costs Among Relief
: Suggestions.
BY j. C. ROYLE.
Special Dispatch to The Star.

NEW YORK, June 17.-The dele.
gates of the National Coal Associa-
ton who gathered at Chicago in con-
Vent1on today voiced the query on the
lips OF practically every coal man in
American, when they asked one an
other, Wat are we going to do about
lt?' For the coal industry. at least
the bituminous side of it, is admitted
~ in a bad way.
The answer to that question is of
utmost Importance to men and women
in every other line of business en-
deavor, since it is impossible to have
an acute depression in any industry
employing some 100000 workers, with
pay rolls aggregating normally $780,
100000 year and with two and a
quarter billion dollars invested with
out affecting the business situation
of the country as whole to some ex-
tent.
900 Too Many Miners.
The majority of experts point to the
fact that 100000 workers are engaged
as one of the chief reasons for the
depression. F. H. Hemelwright. presi-
dent of the Temple Coal and Iron
Co. and coal man of wide expert
ence, told the writer that the industry
now had thousands of mines and 200,-
900 workers more than consumptive
demands required
Actual capacity of the equipment
and men involved is placed at ,000--
100000 tons a year. Last year ap-
proximately 560.00o,OO0 tons were
mined, or 56 per cent of capacity.
Figures compiled by. the Geological
Survey indicated that capacity in
creased from 1918 to 1924 by 254,-
100000 tons, while consumption did
not keep pace. There is absolutely no
hot t1 Of l@
try have capacity of production ex-
ceeding demand by wide margin.
Many Mines Are Closed.
Many mines have closed down and
many more are operating at far less
than full time. But the excess of
workers and the excess of production
still is manifest. How communities
have suffered. Merchants in those
sections have had to give credit to
workers. Manufacturers and distrib-
utors have had to give credit to mer
chants. Now wholesalers and retail
ers are commencing to shut off that
credit.
About 80 per cent of the demand for
bituminous coal comes from the rail-
roads, industrial plants and public
utilities. These factors now are run
ming at a splendid rate, but they have
learned to use coal more economically,
to get more energy from the same
amount of fuel and to use oil, gas and
waterpower in place of soft coal.
The relative energy value of the oil
and gas used increased 121 per cent
between 1913 and 1924. The water
power energy rose 81 per cent. but
the heat units of coal released were
19 per cent less.
Hard Coal Margin Low.
Few Of the bituminous operators
have been making money. Many
attribute this to the present wage
scale, which, for union men, now pro-
vides for a $3.50 day for day work and
$1.08 for tonnage work. These men
have made repeated demands on
union officials for a reduction. Others
in the industry point out that the
non-union mines where the scale is
appreciably lower have not been max
ing profits either. So far union Off
ciaIs, headed by President Lewis of
the United Mine Workers, have
shown a strong and determined resist
ance to such demands.
In the anthracite field, the miners
will meet June q to formulate de-
mands for new agreement and are
talking about a 20 per cent increase.
But even if that is not insisted on,
there seems little possibility of a re-
duction. The bituminous agreement
has until March 81, 1927, to run. At
present bituminous coal prices are II
per cent lower than when this agree
ment was signed
More Processing" Need
Many doubt seriously whether
wages are the vital and real important
factor in rectifying the situation, and
reports from Chicago by wire today
indicate that many men in the indus
try are looking to further reduction
of production, lowering of costs in
mining distribution. and selling, and
merging of companies to aid in bet
terment.
Most experts, however. are turning
toward the processing" of coal to
bring the industry back to prosperity.