Evening star., 1954-05-01
Crisis in Coal

A great deal Of understandable concern is
being expressed about the economic health of
the coal industry. A measurement of the de-
cline in this health is provided in one rather
simple set of comparative statistics.
During World War II, bitumnous coal pro-
duction averaged 592 million tons yearly. It
reached peak in 1947 during the reconversion
period, of $50 million tons. The 1854 rate, based
upon f1rst-quarter reports, is about $50 million
tons. Employment during the peak years was
approximately 435O00 men. According to the
Bureau of Labor Statistics, employment in the
industry last month was down to $50 600 men
an all-time low since 1900.
Aside from whatever effect the current busi-
ness showdown may be having on coal consump-
ton, the real explanation for the drop in coal
production is simply that it has been losing its
market as an industrial fuel. Petroleum, both
domestic and foreign, and natural gas have
replaced coal in many Of its uses-taken away
Its customers, in other words This has hap
pened, in part perhaps, because oil or gas may
be easier to handle or more efficient for certain
purposes. 1t has happened, also, because of
price differentials.
Spokesman for coal, both from management
and labor, currently are emphasizing the vital
Importance of the industry to national security.
There is indeed such an Importance but there is
greater room for debate on the ways and means
by which the health of the industry may be
revived. Broadly speaking, both coal manage
ment and labor seem inclined to start with
declaration Of war on the petroleum industry
and to ask that the Government enlist on the
side of COAL
For example, Harry H. Moses, management
spokesman, says that Legislation may be
very valuable in equalizing us with our COM
petitors, tax-wise or conservation WISE" John
L. Lewis, labor spokesman says 1--WE must deter
mine what are the lines Of demarcation for the
uses Of the liquid and solid fuels" and he con-
demns the injury to coal from "a subsidized fuel,
domeStically speaking, and foreign fuel that
is coming in to please the diplomatic policies of
the State Department and certain oil COM
panies." Reacting to suggestions that part of
Goals cost problems might be met by lowering
wage scales that were pushed up sharply by
strikes and similar tactics during the years of
emergency need, Mr.. Lewis promises further
that there isn't going to be any negotiated
wage decrease"
The Governors Permanent Fuels Confer
ence, representing coal-producing States and
just organized here, appears to be looking to
legislation as the answer. Accordingly, it Is
requesting Congress for legislation to curb i'm
ports Of residual fuel oil-the cheap refinery
residue that is usable as boiler fuel and is in
direct competition with bituminous coal.
Actually, legislating for or against one in
duStry versus another is not likely to provide
an economically sound or otherwise satisfactory
answer Mr.. Lewis speaks Of the desirability Of
a national fuels policy. II such could be formu-
lated effectively, as between the interests af-
fected, 1t might point the way to permanent
and constructive treatment of important re-
sources and the industries which are needed to
develop them.