Evening star., 1927-06-03
POWER DEMAND
COAL TRADE SPUR
New Prospects of Prosperity
Soon in Bitumin0uS In
duStry as Result.
BY j. G. RONI.E.

Special Dispatch to The star,
NEW YORK, June 3.-RationinE
of electric power already is under
consideration in some Of the lower
Atlantic States owing 10 the eXtraordl-
nary drouth in the Appalachian
range. Although the streams supply
ing the Muscle Shoals and other huSe
Southern hydroelectric plants are
not vet low enough for emergency
measures, the prospect Is threatenlflE'
Tho more so since textile plants in
the South are running approximately
AT capacity, with heavy orders booked
ahead. ,,,,...
In other sections Of the Midwest
and South. hvdroelectric plants have
heen hammered in distribution OF
mower by the floods which have pre-
vailed Demand for power as repre-
sented hv the reports Of % representa-
five utility companies throughout the
country is 1O7 per cent higher than
nj this time in 1928.
Effect on Coal Trade.
Those facts lead inevitably to the
conclusion that the future prosperity
of the coal industry is connected with
thn nroduction Of electric current ana
ras for utility concerns. IN nearlN
eyery case where expansion is taxing
nlace in utility fields. hNdro-electrlc
nlauts are being duplicated by steam
nlants in the same locality. III coslS
about 10 times as much to bulld 4
t,.Sroo,actric plaut originally as it
does TO build a coal-consumlng pant
bnt II costs 10 times as much to run
"a coal Dlant as one operated by water
novrar The two plant supplement-
each other and obyiate any shortage
of mower for industrial purposes.
Outside the field outlined above the
immediate prospect for the SOFT coal
industry is not bright. The operators
and miners in the central HennsyiVa-
mia field. unable TO reach an agree
ment, have separated, to meet again
June IS.
Coal shipments from the non-unlon
mines which are in operation nave
heen so heavy that there hardly seems
to have been a strike. This Is equal
w disadvantageous 90 both miners
and operators in the central competl,
five field. Shipments of cargo coai
I'M the lakes have exceeded 1,4S0,oO0
tons, as compared with 3,655,0oO tons
a year ago.
Electrical operation is making giant
strides even in the mining OF coal IT.
self. Experts declare electric power
is meeting every requirement Tor pow
er about the coal properties for cut
ting and hauling coal and other opera
tions. No increase in the cost of pro-
ducing power in Coalburnlng plants
is anticipated a. a result of the coal
strike Gross revenues of most OF
the producers Of electrical power for
industrial purposes are running 10 per
cent ahead of last year.
Reduction i'm Costs.
Reduction of operating costs in both
electric and gas plants is in prospect,
owing, largely, to greater efficiency OF
modern machinery. Power companies
are spending fully as much this year
as they did last in additions and better
ments. Per capita consumption of
e. -ctric energy is on the increase still.
1t probably will approach an s per
cent gain for the first half of the year.
This compares with q per capita con-
sumption of 627 kilowatt hours and
81 kiIowatt hours in 1919.
Consolidation Of power companies
and i. er-connection of plants have
worked toward lower costs of pro
duction. In 1919 it required 30 pounds
of coal to produce one kilowatt of cleo
trical energy. Today it takes but 1.9
pounds to produce one kilowatt of
power.
The trend Of the gas industry is up
ward along the same lines as the cleo
tric power curve. Electric household
equipment sales so far this year have
been about at the same level as in
the corresponding period of 1926, or
a trifie lower. This is due to the in
creased competition, which has mar
lowed profit margins.