Evening Republican, Volume 22, Number 208, Rensselaer, Jasper County, 28 August 1919 — NO SOFT COAL COMBINE, SAYS WITNESS [ARTICLE]

NO SOFT COAL COMBINE, SAYS WITNESS

0, ■ J. D. A. Morrow Tells Senate Committee Such a Combination Would Be Impossible.

PRICES AT MINE LOWER THAN LAST YEAR Better Grades of Coal Have Advanced But Lower Grades Decline, Making Average of AU Grades Lea*. Washington., A tig. 27. —A comblna- . tion among bituminous coal operator* | to maintain or fix prices' does not ex 1 Ist. ami would be impossible if at- [ tempted. J. D. A. Morrow, vice presi ' deu t .ff 11 n- Na ti mia I < ’on I association, i told the senate subcommittee in Its first day s inquiry here into the coni situation. Prices at the mine, Mr ! Morrow added, have declined imdei ! the competition nhich prevails, and ’ are lower now than they “were a year ago.

“There aiv about S.OtW separate commercial producers operating approximately seven thousand mines, from which bituminous coal'is regu larly shipped.’’ Mr. Morrow said. “In addition there are some two thousand operators with about three thousand mines, who begin producing and sell Ing coal whenever the price goes up a little and offers a profit to them Thus In 1917c0al production was re ported to the United States geological survey from 10.634 mines. Moreover, there are hundreds of thousands oi acres of coal lands alor.g railroads on which new mines can be readily and quickly opened bv anyone so disposed “Such a condition obviously dogs not lend Itself to restrictive etimbimulous among producers. In addition, the op erators of each mining field are sub ject to competition from the producers of other-fields, so that buyers have many different sources of supply avail able to them. “Anyone wlm alleges that here Is 8 nation-wide combination among bl tuminous coal production and distr! button, merely advertises his own ig norance or convicts himself of deifb erate and vicious misstatements. “Of the five thousand separate bi tuminous coal producers in the Unite' States, 2,294, approximately 45 pei cent, hold membership in the Natlonu Coal association. They produce about 60 per cent .of the total output of bi tuminous coal in the country. “Charges that the National Coal as sociation is a combination to inaintaii prices are without foundation in fact they doubtless proceed simply fron ignorance of its purposes and activi ties. The National Coal association neither buys nor sells coal; neithet does it have anything, whatever, t< do with the prices which its memberask or sell at, nor with the territory into which they ship their coal, noi the quality which they produce.”

Mr. Morrow stated that bituminous coal prices have declined since th< armistice, and in general are lowei than the prices fixed by the United States fuel administration. He sub mitted charts to the committee graphically showing the pricesat which bituminous coal sold at the mines in different districts of the United States from April 1 to August 1. 1919. In connection with these charts, Mr. Morrow explains that when the price restrictions of the fuel administration were removed on February 1 last, the better, more desirable coals went to a premium in the open competitive market, and the less desirable coals declined in price. This was the action to be expected, he said, in a market where the buyer exercises his choice and can obtain the kind he prefers. As a result, instead of the uniform prices in different districts,, which were flxjjd by the United States fuel administration, prices promptly spread out, some coal going higher and some lower than they had been, ‘Meantime.” Mr. Morrow said, “the cost of producing bituminous coal Is higher now than U was a year ago due to the fact that the mines then were operating six days a week, and in many cases now are operating four days per week, and In some cases only three day’s per week. The overhea< expense of mafntaining mines goes o just the same whet,her coal is pre

duced or not. These Idle-day expenses have resulted In increased cost pet ton. As compared with last year when these increased costs are considered In connection with the genera decrease in prices. It is clear that profits of bituminous coal operator.are materially less than a year ago.” Referring to statements by Representative Huddleston of Alabaxna-™XM---reei-orGen e ra+-Hinesof the tailroad administration and others, to the effect that bituminous coal prices at the mints are unduly high. Mr. Morrow ■aid: "I wish to deny publicly and emphatically these allegations that bituminous coal prices are being maintained in some improper manner, and are unduly high. I am convinced that these statements proceed simply__frama lack of understanding ot the facts. Mr. Morrow drew comparisons between the prices of bituminous coals at the mines In the United States and foreign countries. "Prices at the mines In Great Britain." he said, “are about three times the mine prices prevalent in the United States. In grande the mine prices are mope,-than three and a half times those Of the United States. English mine prices range from SS.S4 to 17.1* per ton at the mines, while bituminous coal in France is costing about tS.T# per ton at the mines. The averag.* mine price of btumtnoiis coal sold ii. the United States is In the neighbor hood of »» *• per tan.”