Indianapolis Times, Volume 33, Number 67, Indianapolis, Marion County, 28 July 1920 — Page 5

Do You Believe $3.00 Per Ton A Profiteer Price for Coal?

Knox County Coal Operators Association

Get These Facts If truth is worth your while, then get these fundamental facts governing the production and sale of coal fixed in your mind. Does $2.94 per ton make you, Mr. Citizen, think in terms of profiteering? Certainly not. Yet $2.94 is the highest average selling price realized by KNOX COUNTY COAL OPERATORS during the first six months of 1920. This includes all coal mined—steam, domestic and railroad. Read These Figures Knox County Coal operators have nothing to conceal. Promptly upon the completion of each month’s business figures are compiled showing the month’s average realization on all coal sold. Here are the figures for the first six months of 1920: January $2.21 February 2.48 March 2.41 3-10 * April 2.80 May 2.74 3-10 June 2.94 4-10 *lncreased wage scale awarded to miners by Bituminous Coal Commission raised prices April Ist. Building Markets Knox County coal operators mine 3,000,000 tons of coal annually. With an adequate car supply and the market demand this production can be doubled without increasing mine facilities. Budding a market for the potential production of Knox County mines was our basic hope when the Knox County Coal Operators’ Association was organized. We have no agreement—verbal, written or otherwise—to fix prices. There is no price-grabbing spirit to mulct coal consumers manifest in our association. Bulk of Product Contracted One hundred per cent, delivery on all contracts at all times is the service MOTTO of Knox County Coal Operators. Making good our service aim has budded a contract business for Knox County Coal that practicady consumes Suit entdx© output* _ , dJ wv < <,■ * < t

For the first six months of 1920 Knox County Coal Operators (of Indiana) realized less than $3.00 per ton for all coal sold. Surely no one will argue that $3.00 is unreasonable. Yet in the storm of misconceived and misdirected criticism coal operators are charged with profiteering.

An Adequate Coal Supply is Dependent Solely Upon an Adequate Car Supply

INDIANA DAILY TIMES, WEDNESDAY, JULY 28, 1920.

We are not speculators. Steady operation on a small margin is the ideal situation every legitimate coal operator hopes to enjoy. Seasoned coal operators endeavor to avoid intermittent coal shortages and upshooting prices. Strike Creates Shortage The coal miners’ strike of 1919 laid the foundation for the coal shortage, and the railroad ear shortage developed t&e present acute situation. Asa result the public deplores an impoverished coal bin. When the mine workers laid down their tools November 1, 1919, and went out on a six weeks’ strike, the daily average production of bituminous coal decreased 70 per cent. From 12,000,000 tons weekly, production dropped to 3,500,000 tons. The return of strikers from week to week in various fields increased production to 5,811,000 tons for the week preceding the calling off of the strike. Production did not reach normal, however, for three weeks following the miners’ return to wor 1 Storage Stocks Drained Fifty million tons of coal in excess of the amount produced was consumed during the six weeks strike. Storage stocks supplied this tremendous tonnage to keep the wheels ol industry and transportation moving. Such inroads on precautionary surpluses would depict to the average mind a wild scramble on the part of big users to replenish stocks. But such was not the case. Everybody seemed to take it for granted that the government had the strike in hand and that coal production would continue uninterrupted. Coal users seemed to forget that any other cause except a miners’ strike could possibly interfere with maximum production. Coal Market Soft The coal market continued soft. Buyers apparently' were awaiting the outcome of the hearings before the Bituminous Coal Commission, dust why an optimistic feeling should have permeated the minds of purchasing agents when the effect of a car shortage was being felt in practically all fields, and what advantage

they hoped to gain by delay, is unexplainable, unless it was their hope to find an over-production during the summer months and batter down prices based on a year’s supply. Production continued low. | Miners were granted a wage increase. ■ Still there was no great effort made to contract coal. The Switchmen’s Strike Then out of a blue sky came the switchmen’s strike. Coal production immediately decreased from 20 to 50 per cent, in various fields. Transportation facilities were practically paralyzed. The switchmen’s strike, as in the case of the miners* strike, had the effect of awakening coal consumers. But storage stocks, which had kept things going during the miners’ strike and had not been replenished, were not available to tide over the switchmen’s walkout. Switching service has not yet been restored to normal. When it will be no one can prophesy. The Only Remedy 1920 Coal Production to date exceeds that of 1919 by 45,000,000 tons, and is only 31,000,000 behind the record year of 1918. From the present outlook there seems but little likelihood of coal production increasing to a figure permitting extensive storage. Yet tho potential production of bituminous coal mines, if unharnessed from transportation handicaps, can, within thirty days, meet the nation’s every coal requirement, commercial and domestic. There Is But One Remedy and That Is an Adequate Car Supply Government commissions or state agencies may attempt to solve the problem, but upon adequate transportation facilities alone hinges the nation’s coal supply. We have the facilities and are ready and willing to produce. But we are helpless so long as the railroads are unable to deliver. Give us Cars—we’ll give you Coal

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