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Digitized by the Internet Archive
in 2018 with funding from
University of Illinois Urbana-Champaign Alternates
https://archive.org/details/blackdiamond55unse
BABin.
Vol. 55. No. 1
CHICAGO
COLUMBUS
JULY 3, 1915
NEW YORK
PITTSBURGH
$3.00 Per Year
Needed Aids for
When a retailer owns an auto truck, what other
appliances must he have in order to get all of the
economy of which is possible? That is to say,
the auto truck is an instrument of speed. It
does no good to have the possibility of speed if
it cannot be realized, because either loading or
unloading facilities are hopelessly slow. What
can be done, therefore, to load and unload the
auto truck rapidly in order to get the full ad¬
vantage of its speed possibilities?
We have asked that question of a good many
retailers and some of them are less positive in
their answers than they are about other thin.gs
which have to do with an auto truck. Still there
is universal recognition of the fact that the auto
truck must have auxiliary equipment or it cannot
be made to pay.
Every retailer recognizes that an auto truck
must be loaded promptly and quickly. Some are
of the opinion that an overhead pocket with
gravity loading is the only thing that should be
used. However, for various reasons some do not
take kindly to an overhead pocket, but say the
same result could be obtained in another way.
For example, a wagon loader can be used to lift
the coal from the ground to either a rocking
cradle loader or into a small bin that will hold
about a truckload of coal.
Some few have advised the use of the rocking
cradle loader in connection with a car on the
public team track and the employment of men
to shovel the coal. As a matter of fact, one of
the best records ever made by a truck was af¬
fected in just this way.
Still others say that a truck can still be made
economical while being loaded with a wagon
loader direct from the pile on the ground. They
do not claim for this method quite the economy
that can come from one dumping which will fill
the truck in a few seconds. Still they say it
gives the truck practical efficiency.
In the matter of unloading, all kinds of sugges¬
tions are made and they ring all the changes from
optimism to pessimism. For exainple, one
will say that a truck is practically impossible be¬
cause not five per cent of the consumers of coal
are equipped to receive it in any efficient or ex¬
peditious manner. They are inclined to say that
because the truck cannot be unloaded rapidly in
ninetv-five per cent of the cases, the truck should
not be employed at all. .
Others recognize the lack of equipment on the
part of the consumer but insist that this is a prop¬
osition for the retailer to solve rather than for
him to depend upon the householder to reform
his conditions before making use of the truck as
an instrument of speed For example, one of
these vigorous retailers comes out strongly in
favor of the tractor which has “the power m
front and the load behind,” or which has a de¬
tachable body that can be left to unload while
the motor returns to the yard for another body
containin.g another load.
Still others favor the dumping of the coal on
the ground by the use of a dump body and the
leaving of men to carry the coal in, while the
truck returns to the yard to take up another
load and another crew of carriers. Where the
coal is delivered in bulk these dealers favor
dumping the coal on to a strip of canvas or a
broad platform, leaving the men with shovels
and wheelbarrows to negotiate the distance be¬
tween the curb and the coal hole.
Where the coal is deliv'ered in bags, they_ ad¬
vise dumping the bags on the ground as quickly
as possible, leaving the men to carry them m
while the truck returns to the yard.
Some few favor increasing the number of car¬
riers so that the truck can be unloaded and the
coal dumped about as fast as the bags could be
put upon the ground by the use of fewer helpers.
Those in favor of this idea say that the same
number of helpers are employed as would be the
case if the men worked in two or three gangs,
and that this system would avoid the expense of
carfare for the men returning to the yard to take
up another load after one was finished.
One very ingenious suggestion made by one re-
Trucks — Facilities to Save Time.
A Costly Machine Built for Speed Can¬
not Make a Record if Kept Standing Idle
for a Long Time at Both Ends of a
Route.
tailer is that he employs the truck only on long
hauls. He loads the truck by automatic ap¬
pliances at the yard and then sends it out on a
long haul and sends a good-sized crevv along to
do the carrying in. Then the truck is allowed
to stand while it is being unloaded by this crew.
He calls attention to the fact that the percentage
of time per trip that the car is standing idle at
the unloading point is thus very materially re¬
duced. This cuts down the idle time to a point
where it is not really embarrassing.
However, the retailers are convinced of one
thing, which is that a truck unless it is kept going
most of the time is likely to get less of its pos¬
sible economy than though it were kept on the
move most all the while by being given rapid
loading in the yard and rapid unloading at
destination.
In response to inquiries retailers in very part
of the United States have given definite informa¬
tion upon this point. What they have to say
is both interesting and instructive, as the follow¬
ing letters will indicate.
Importance of Auxiliary Appliances.
Central Coal & Coke Company, Kansas City,
IMo. ; “For periods during the winter months
when we had plenty to do and places where our
coal could be unloaded with dump body, we cut
our hauling e.xpense in two.
"We think where business justifies the use of a
fleet of trucks large enough to bear the expense
of hiring an able mechanic to keep the trucks in
condition without sending them to a public garage,
there is economy in the use of same.
“The main advantage gained in truck hauling is
to keep them moving by having a method of load¬
ing quickly, and also getting rid of the load
without delay. The price of several teams is tied
up in one truck and should they be compelled
to load by hand and unload under the usual team
conditions there is no economy whatever.”
A retailer of St. Paul, Minn. : “The value of
a motor truck depends entirely upon the use to
which it is to be put, the condition of streets
and roads, the ease with which the truck can be
loaded and unloaded and the facility of operation
in the vard. .
“What is good for one location is not good tor
another and dealers should give the subject most
careful consideration before buying a truck that
might afterwards turn out to be a white ele¬
phant.” . ,
J. B. Dooley, Dooley Bros., Peoria, Ill. : With¬
out a doubt the auto truck is a paying proposition
to the dealer who has sufficient business to keep
his truck running to full capacity at all times
and can arrange for a quick method of loading
and unloading the trucks. The success of a
truck will depend a great deal upon the condi¬
tions to be met at both the loading and unload¬
ing points.”
Big Tonnage to One Point.
C. P. Campbell, vice-president Consumers Com-
panv, Chicago; “We are rather riew_ in the use
of trucks and find them quite economical on cer¬
tain deliveries and the reverse on work of a
different character. For instance, where we have
a large tonnage going to one delivery point and
can provide facilities for the prompt loading and
unloading of our trucks there is quite an advan¬
tage in using this kind of equipment. But for
miscellaneous deliveries on moderately short hauls
I consider team delivery the most economical.
“It seems to me it is a matter for every dealer
to figure out for himself and in order vo arrive
at the proper conclusion, he must take into con¬
sideration his loading facilities, the class of his
deliveries, and variations in the volume of his
business. I am very sorry that we have no fig¬
ures to give out that might be a guide to others
in the trade, but as previously stated, we are
rather new in the use of trucks and do not know
as yet whether or not they may prove entirely
economical for handling the bulk of our coal and
material.”
A dealer of Cleveland, Ohio: “After a month’s
trial with a two-ton automobile truck in connec¬
tion with our retail business, we have found that
it is not as economical for operation as the horse
team in connection with the average retail yard.
For an up-to-date yard with hopper bins with an
average haul of two miles or more, I think they
should be a success.”
Curb Deliveries Necessary.
Schaeffer & Gengnagel, Dayton, Ohio: “Trucks
are a paying investment at times, but are not for
the coal dealers unless said dealers have curb
deliveries. In our city where the coal dealers
have been foolish enough to use chutes and any¬
thing else that is needed to put their customers’
coal in his cellar or coal bin, a truck is an ex¬
pensive luxury.”
G. T. Lawrence, manager the Peoples Ice &
Fuel Company, Topeka, Kans. : “We are not in
the coal business, but the ice business only. I
should think that from our experience vvith
motor trucks in this line they would be prac¬
tical only in such places as are equipped with
rapid loading facilities and no carrying to be
done in the unloading.”
Good Facilities at One End.
N. Poston, vice-president and manager Pacific
Coast Coal Company, Seattle, Wash.: “We have
been using auto trucks in the delivery of coal for
the last five years and have been successful with
their operation. With all, however, I do _ not
think that we would have been successful if it
were not for the fact that we operate a large
machine shop, and as a consequence our repair¬
ing was done at actual cost and was very much
less the price usually charged for repairing auto¬
mobiles.
“A big consideration in the operation of auto
trucks is as to whether the volume of business
is sufficient to keep the truck going with a capa¬
city load continually. If so, the next considera¬
tion would involve itself into three parts : Load¬
ing, running and discharging. We have found it
to be a losing proposition to take trucks off hard
surface road ways and will not do so. W'e have
bunkers where the coal flows by gravity into the
trucks. We are at a disadvantage in unloading
as it is impossible for us to dump the coal.”
Favors Power Dump Unloading.
J. E. Andrews, manager the Cuyahoga Coal
Hompanv, Cleveland, Ohio : “Our answer to the
question, ‘Will it pay to install auto trucks m my
-etail coal business,’ is up in our case, ‘Yes.’ We
lave a gravity loading plant and have business
enough to keep our two Packard trucks working
where conditions are right for using the power
:lump in unloading and getting away quickly.
A’ithout rapid loading and unloading facilities it
is a question in our minds whether a motor truck
will show economy over the horse-drawn vehiclp,
excepting in cases where the distance is long.”
H. McK. Smith, the Smith Fuel & Ice Com¬
pany, Staunton, Va. ; “Two years ago we bought
one two-ton capacity dump body coal truck. It
has paid us well, although this town is very hilly
and the average round trip haul is not over one
and one-half miles. We have quick loading and
unloading facilities, however. ^\ e have just
ordered a second truck of three-ton capacity,
automatic hydraulic dump body. Two of our
competitors, having closely observed the per¬
formance of our truck, have also recently pur¬
chased trucks.” T, 1 1 -It XT
R. ?iIacKeller & Sons Company, Peekskill, iN.
3536.10
A
THE BLACK DIAMOND
[July 3
)
Y. : “We are not in the coal business but we
can say that auto trucks are all right for the
retail man, provided he has pockets. Otherwise
they are not.”
Automatic Loading Needed.
Alex Y. Malcomson, United Fuel & Supply
Company, Detroit, iMich. : “In our opinion auto¬
mobile trucks can be installed in a retail coal
yard advantageously, where the yard is equipped
with the proper apparatus for quick loading of
the trucks; that is, with chutes, over-head bins
and locomotive cranes or other proper labor sav¬
ing devices.”
Jos. W. Simpson, assistant to president, Mil¬
waukee Western Fuel Co., Milwaukee : “We have
now been operating for the last nine months a
Pierce-Arrow five-ton hydraulic dump truck, and
the same has proved to be very successful. The
question of making a truck pay, however, depends
entirely upon the loading facilities and unloading-
facilities. Before any retail coal man purchases
a truck, it would be advisable to have the truck
salesman know just what the conditions are that
must be confronted.”
Private Driveways Inadequate.
A. E. Davison, Bell Coal Company, Kansas
City, Mo. : “Our trucks are five-ton automatic
dump bodies weighing slightly over five tons
when empty. In the domestic business we find
that about nine driveways out of ten are not
constructed so as to be able to withstand a load
of ten tons so that the truck is of very little
service in this direction. Then again, some drive¬
ways are too narrow to permit of the passage of
a five-ton truck in case they could stand up
under the weight imposed.
“When it is necessary to shovel a load of coal
from a truck to a coal window^ or chute, it is
more difficult to do so than is the case from a
w^agon.
“The truck is of more value in the handling of
street hauls, but compared to other cities, there
is not a large percentage of this class of business
here on account of the local heating companies
that pipe their steam along the streets.
“A truck is of special value when it comes to
handling steam dumps, and we use them prin¬
cipally for that purpose.”
Gets Fast Loading.
W. H. Riley & Son, North Attleboro, Mass._:
“We have a two-ton Packard truck and find it
to be a very profitable investment. We handle
our coal through a pocket and we can load our
truck with three tons of screened coal in five
minutes. We are of the opinion that it would not
pay a dealer to use trucks where his coal has to
be loaded by hand, especially on short hauls.”
Godfrey Coal Company, Milton, Mass. ; “Auto
trucks to be run successfully must have the ad¬
vantage of quick loading facilities. The ordinary
way of shoveling coal from the ground in the
average retail yard in the country takes too much
time. We have been running a truck now for
four years, and under our local conditions can
say that while it has advantages over the horses
in some ways, we cannot deliver coal as cheaply
as with the horses.”
Small Truck for Mixed Loads.
John T. Blackburn, Albany, N. Y. : “We have
had one three-ton Packard truck with hand ele¬
vating body in operation nearly three years. We
find it advantageous and economical on long hauls
where we can have quick loading and quick dis¬
charging. On short hauls it is more expensive
than horse-drawn vehicles.
“If the dealer has quick loading devices at his
yard and enough business at full loads at a dis¬
tance of say two miles from the loading point,
he will make no mistake in purchasing a truck.
If his business is short hauls with mixed loads
it would be a doubtful investment — especially if
the truck is three-ton capacity or over. My own
notion is that a two-ton truck is a better propo¬
sition for the average man than a larger one.”
Small and Large Trucks.
W. W. Griffith, Washington, D. C. : “I adopted
this mode of delivery in 1911. During that time
I have carefully tested and observed the results
obtained from motor trucks of from one to five-
ton capacity, inclusive. I have finally concluded
that in coal delivery service, the most advantage¬
ous results are obtained from trucks of two and
five-ton capacity, and have adopted them accord¬
ingly, my conclusions having been based upon
the showing of an established system of recording
the results obtained.
“Having practically eliminated from coal de¬
livery service trucks of other than two and five-
ton capacity, I now have in this service five two-
ton trucks and six five-ton trucks. These trucks
make general deliveries, and the only instances in
which I find the horse-drawn vehicle an advantage
over the motor truck are where special conditions
prevail rendering motor truck delivery disadvan¬
tageous — such as narrow and congested entrances
to the objective points of delivery. Where such
conditions prevail teaming delivery is much more
feasible, teaming labor is cheaper, and there is
no special hardship on the animals, and, thus, the
advantage of horse-drawn vehicles under such
conditions offset the quicker mode of conveyance
by motor truck.
“Another instance in which I would not recom¬
mend the motor truck is where it is necessary to
shovel coal from cars or ground, except in such
cases where the radius of haul exceeds a two-mile
round trip. The longer the haul the more favor¬
able is the use of the motor truck, so long as
roadways render their operation practical.”
Good With Gravity Bins.
F. O. Block, secretary W. G. Block Company,
Muscatine, Iowa ; “We have several Velie auto
trucks in use for the past three years and our
costs show that we can haul coal from our plants
at about fourteen cents per ton per mile.
“By way of explanation, however, we wish to
state that we handle all our coal through gravity
bins and, of course, the loading of the trucks is
done automatically. The above mentioned figure,
of course, does not include the operating expense
of the truck, repairs and depreciation.”
S. Shriner of the W. G. Block Company, Daven¬
port, Iowa: “We are using motor trucks at our
Muscatine and Davenport yards, but not at our
Cedar Rapids yard. At both our Muscatine and
Davenport yards we have gravity coal bins which
enable us to load our trucks in from three to
five minutes. We do not believe that an auto
truck would be a profitable proposition for any
retail yard unless the yard was equipped with a
gravity coal pocket or some other means to in¬
sure quick loading.
“Before this company installed the gravity coal
pockets, we handled our coal from a flat yard and
our experience was that it took from half to
three-quarters of an hour to load a three-ton load
of coal either direct from the car or from the
bins in the shed. A proposition of this sort would
keep a truck idle too many hours of the day. In
order to make a truck pay, it is our experience
that they must be kept on the move.
“The average retail dealer, of course, handles
his coal from a flat yard or direct from the car.
Where gravity pockets are installed, however, we
believe that in most cases a truck would prove a
paying proposition.”
Used on Long Hauls.
John J. Mullan, vice-president Peoples Coal
Company, Worcester, Mass. : “We have found
our trucks have paid us very well in long hauls
or anything beyond two and one-half or three
miles where we could use them on quick loading.
We found it did not pay to have them stand
while they are being loaded by hand either on
anthracite or bituminous. But, with our wagon
loader and hopper arrangements which we have
we can load them very rapidly.
“Our trucks average thirty-five miles per day,
making about eight trips with an average load
of about 8,000 pounds, which is very good for
our city, which is hilly. We also find that the
trucks relieve our horses in a great many ways,
as we do not give them any more of the hilly
trips than we can possibly help.”
Routing Is Necessary.
Henry A. Welch, Welch Coal Company, Nia¬
gara Falls, N. Y. : “After two years’ experience
with a three-ton automatic dump truck, - would
say that there are several conditions to be con¬
sidered before entering into the truck proposi¬
tion.
“First, a truck should be able to get its load
quickly and discharge same without any loss of
time.
“Second, good roads are a necessity because a
truck will not operate satisfactorily on a muddy,
slippery street.
“Third, the attention of some person is needed
to look after the routing. To operate to advan¬
tage truoks must be kept moving.
“We find that on bulk loads the truck works
out all right, but on split loads, unless the haul
is a long one, it is not much better than horses.
“In putting in summer supply orders, we dump
the coal on the street wherever possible and leave
a man to wheel it in. In this way it is possible
to work four or five jobs at one time.
“We find that it costs us about $14 per day to
operate our three-ton truck. If we were buying
another one, we would buy a five-ton, as the cost
of operation is not much greater and the capacity
would be considerably increased.
“If the dealer has the bulk business as well as
split loads, proper handling and unloading facili¬
ties and good streets the truck will work out all
right, otherwise he will have a very expensive
proposition on his hands and he had better stick
to horses.”
Owner and Driver Determine.
E. S. Morse & Company, No. 199 Medford
street, Boston, Mass.: ■ “We have no figures and
no advice to give concerning auto trucks, as we
have decided after four years’ experience that it
all depends upon the owner and driver as to
whether the truck can be made to pay or not.
“The driver of a car should be like a good
horse driver, avoid the holes and ruts in the
street, car trucks, gutters, etc., thereby saving
the springs, tires, etc., and also mechanic enough
to take good care of his motor, keep it well oiled
and cleaned. The bearings also need watching,
and the steering gear. The carburetor needs ad¬
justing and the proper mixture of air and gas
keeps the gasoline bill down. There are count¬
less other things a driver should know. He
should also be a temperance man as rum and auto
trucks do not work well together.
“The owner should be liberal enough to pay his
driver overtime for extra time he works to keep
his machine washed and in good condition, so
that there may be no delay in starting up in the
morning. The machine should be kept in a
heated or warm garage in winter.
“If a good owner and a good driver both take
an interest in the machine and watch its daily
work, there is no doubt about its being a paying
investment.”
A Record Is Made.
J. F. Flood, general .manager Youghiogheny
Coal Company, Pittsburgh, Pa.: “To make trucks
pay they must be kept moving. If loading and
unloading facilities are good and proper atten¬
tion is paid to upkeep of trucks, the delivery of
coal by motor trucks will cost less than delivery
by team, short or long hauls.”
“As to the possibility of the delivery power of
trucks, would say that in one night our truck
“C,” a five-ton machine, in eleven hours and
thirty-five minutes actual running time delivered
371 tons of coal ; in ten hours running time the
tonnage delivered was 316. This was delivered
from our dock at Eighth street and Duquesne
Way to the buildings in the downtown of Pitts¬
burgh. No special preparations were made for
this test except that we kept our bins filled with
coal and allowed the coal bins of our customers
to run low. I am satisfied that a truck can equal
this record three hundred nights a year if con¬
ditions are right. .\s we load from over head
bins, this work is done rapidly. This also ap¬
plies to unloading as we dump from rear aided
by power hoist.”
Oil and water — it is known — will not mix, so
some wit has put it that text books and coal
mining should be put in the same class. This
week saw considerable newspaper space accorded
to T. J. Foster, head of the International Text¬
book Company of Scranton and the financing of
that concern and the I. C. S. Foster and J. K.
Griffith, an officer of the correspondence course
concern, lay the blame of the straitened circum¬
stances of the schools to the receivership that
was forced on the Paint Creek Collieries Com¬
pany. This, with the financing of the Lacka¬
wanna Coal & Lumber Company, the correspond¬
ence school men say, was a continual drain on
the other resources. A plan for rehabilitation of
the properties has been offered by bankers who
have a.greed to re-finance the concerns.
About the only public contracts pending in New
York City that are new, are those of the de¬
partment of docks and ferries to be opened on
Friday noon of this week for a certain quantity
of buckwheat, and the Collec^e of the City of
New York, to be opened on July 6th. Both of
these contracts call for very small tonnages as
compared with some of the public business re¬
cently let.
No. 1]
3
THE BLACK DIAMOND.
Making Tests to Learn Coal Value.
By H. A. Atwater.
The average buyer of steam coal of several
years ago could be placed in the same category as
the buyer of gas or electricity. He thought of
coal as a thing possessing more or less uni¬
form properties, and consequently the coal bills
were paid without his taking the trouble to settle
for himself the question of whether or not the
proper kind of coal for his particular furnace was
being burned. In fact, many buyers probably
never considered the possibility that one grade
of coal might be more suited to their furnace
equipment than some other grade.
It has been only recently that the men in
charge of the boiler or power plant expenditures
have seriously considered the question. Goaded
on by the sharper and sharper competition in
modern industrial processes, the manager, in his
endeavor to make all possible cuts in the costs of
production, has finally been forced to look his
steam costs square in the face.
Ask several plant managers what their fuel
cost of steam is and it will be a source of won¬
derment that it could be possible to obtain such
a variety of answers.
Or, better yet, ask one what his furnace ef¬
ficiency is. The most relevant answer to this
question will very probably be given with more
or less pardonable pride about as follows :
“It costs us 1.9 cents to produce a kilowatt
hour,” or “we produce a kilowatt hour with 22.1
pounds of coal.”
Getting the Fine Point.
These figures are all very good as far as they
go, only they do not go far enough. They cover
the costs all rolled into one figure all the way
from the coal pile to the switchboard, whereas at
present we are interested only in finding the
costs into which the item of coal enters directly.
\'et, this same manager knows to a' fraction of a
cent what the unit costs are for every little oper¬
ation in his plant. The fuel cost of evaporation
per thousand pounds of steam, or some similar
■ quantity, is one of the figures that the manager
ought to know, and until he does know it any
endeavor to reduce his power costs from the
coal end will resolve itself into more or less of
a hit-or-miss proposition.
The greater part of the total cost of steam
consists of the fuel cost of steam, which imme¬
diately shows what a vital part the coal bill plays
in the total power cost.
Blame for Waste.
In placing the blame for the wasteful practices
one usually sees in most boiler rooms, we can
start with the fireman. But, the real blame ought
to rest higher up with the manager or whoever
the man may be who has the final decision on all
matters connected with the power plant. The
average fireman gets the lowest wages of any
man around the plant. And, as should be ex¬
pected, he measures his ability by the steadiness
with which he maintains the needle of the steam
gauge at a certain figure. He looks upon the
coal pile as an inexhaustible quantity of heavy
material to be shoveled just as so much mud or
cinders.
Very probably a radically different state of af¬
fairs would exist were the coal pile to be changed
to the gold it represents and the manager to walk
in during the daily routine of shoveling. The
time is not so very far distant when the boiler
room superintendent will be one of the highest
paid men in the plant. This time has already ar¬
rived at some plants whose owners have recog¬
nized the importance of efficient and economical
steam production.
The coal buyer need give just a little thought
to these considerations to be convinced of the
importance of choosing his coal with care. The
engineer of any plant can easily obtain data de¬
scriptive of the manner in which various boiler
tests should be carried out, whether he wants the
test to be a comprehensive one or one carried out
in a more special manner with the omission of
many observations which might not be essential
to the object of obtaining a check on the relative
worth of the coals being fired.
The Matter of Tests.
The facilities in a large number of plants are
more or less limited as well as most engineers'
time. So, the running of a series of evaporative
or general performance tests can be considered
as being out of the question. Nor is such a series
of tests necessary. Any engineer thoroughly
familiar with his plant can readily judge as to
the comparative results obtained with different
grades of coal by a close observation of furnace
conditions and a little conscientious study of
what he observes.
A check on the coal weights should always be
kept, but this requirement should present no dif¬
ficulties in even the smallest hand-fired plant. Ap¬
proximations based on volume observations are
usually sufficiently accurate to indicate very clear¬
ly the difference that may exist between any two
grades of coal.
The length of the test is a matter which has to
be solved by every engineer or manager for him¬
self. Some plants are so situated that price
considerations prohibit the purchase of more
than one or two different grades of coal. For
these plants, a comparison of the results obtained
with the coals available should not require such
a great length of time. In the case of plants with
very uniform load and operating conditions, a
test of any one coal would hardly need be e.x-
tended over more than a few days. Conse¬
quently, the engineer could determine to his own
satisfaction the best coal to use after a few days
or a week of observations.
On the other hand, a plant often is situated
where a number of various grades of coal are
available. If, furthermore, load conditions were
so variable that it would be necessary to extend
observations over a period of a few weeks in or¬
der to obtain a fair estimate of what any one coal
could do under an average of these conditions, it
is obvious that the length of time required for a
sifting down of various coals to the one grade
most suitable could very easily run into weeks
and possibly months.
It is far cheaper in the long run to take a little
more time, whether it is a matter of days or
weeks, and continue observations until the engi¬
neer is satisfied in his own mind that he has de¬
termined the proper coal to contract for.
Need of Information.
There is no gainsaying the statement that
altogether too many managers who are directly
charged with the purchasing of coal are ignorant
of most of the relations that govern the fitting
of coals to certain furnace equipment in order to
secure the highest furnace efficiency, not to men¬
tion the matter of a knowledge of what coals
are available for i)urchase and the general condi¬
tions governing the price at which they can be
contracted for. It is this general coal and price
situation which the buyer should understand be¬
fore going into the questions involved by an en¬
deavor to choose his coal.
While it is not true that the use of the cheaper
sizes of coal always results in lower steam costs,
if conditions are made favorable for burning
these coals, there is no reason why a substantial
reduction in steam costs should not be the result.
The western manufacturer is the one to whom
this question of cheaper sizes is the most vital
as the principal anthracite, semi-anthracite, semi-
bituminous, and high grade bituminous fields lie
in the east, and thus give the eastern manufac¬
turer the use of high grade coals without the
disadvantage of high freight rates.
The principal coal fields near to the hand of the
western manufacturer cover the greater part of
the state of Illinois and the southwestern portion
of Indiana. Unfortunately the Chicago manu¬
facturing district is situated at a disadvantage
with respect to these fields as the higher grade
coals are mined in the southern part of the state,
although the bituminous and block or lower vein
districts of Indiana furnish very good steam
coals. The operations nearest the city, such as
the Wilmington, Streator, and Danville districts,
furnish the poorer grades.
In general, the coals from the central part of
the state, such as the Springfield, Mt. Olive and
Third vein districts, have a lower fusing point
than those from the southern fields, which tends
to offset the advantage in lower freight rates en¬
joyed by these central Illinois coals.
Peculiarly it is a market condition of supply
and demand that affords the buyer a great op-
[lortunity to obtain cheap steam-coal by buying
screenings.
Screenings result from the production of do¬
mestic and prepared sizes, and the demand for
these coals being accompanied by the necessity ot
getting rid of the screenings makes it possible to
contract for this “by-product,” as it might be
called, at prices which are very often below cost.
Nor is this lower price justified by the fact that
the screenings constitute the slack coal of the
mining operations, as modern improved methods
of mining coal make it possible to obtain slack
coal with very little more ash than is present in
the prepared sizes.
A Matter of Value.
If the actual relative values of the screenings
and the prepared coals were figured from their
heat values, as shown by calorimetric tests, it
would be found that the difference in market
prices would almost without an e.xception amount
to two, three and often four times the difference
warranted by the heat contents.
It is this fact that should show the buyer how
much more he is getting for his money when he
buys screenings ; that is, assuming that he can
use them. It is in just this last question of being
able to use them that he has usually fallen down.
The lower fusing temperature of the majority
of the cheaper screenings will usually cause
trouble from clinkering in hand-tired furnaces as
they have been constructed in most plants up to
the present time. However, the introduction of a
great number of automatic stokers and even sev¬
eral designs of hand fired furnaces, which are
designed to handle these screenings without any
difficulty, has opened up a field to the steam coal
user of almost unlimited possibilities. It is to
these possibilities that this article has endeavored
to direct the attention of the buyer.
But even this should be made to serve as a be¬
ginning as the final choice of a fuel for various
furnace conditions is more or less complicated by
considerations of furnace design, the per cent of
volatile matter and ash in the coal, thickness of
the fuel bed, draft, wet or dry firing of coal, etc.,
each of which in itself can readily be made the
basis of an instructive article.
It is stated that no action has been taken
l)y the Bethlehem Steel Corporation relative
to the construction of the fleet of steamers
to use in bringing ore from Chile to the
United States. About a year ago it was said
that Mr. Schwab had placed contracts abroad
for the construction of a fleet of vessels of
12,000 to 15,000 cargo-carrying capacity to
bring ore from his Chilean property to an
Atlantic port, where it could be transshipped
to Bethlehem. ,4n order was said to have
been placed for six vessels, but this work was
suspended when war broke out, and it looks
now as though delivery would not be made
until the war is over. It is not possible at
the moment to place orders for any con¬
siderable amount of tonnage with American
shipyards, as most of the .Atlantic shipbuild¬
ing i)lants have sufficient business now under
contract to keep them busy for eighteen
months to two years.
4
THE BLACK DIAMOND
[July 3
The Aftermath of the M-O-I Convention.
As a closing act of one of the most interesting
and important conventions which the Michigan-
Ohio-Indiana Coal Association ever held came
the election of officers and the adoption of resolu¬
tions.
J>y the election of officers, Robert Lake of Jack-
son, Mich., was returned to the presidency, where
he liad served successfully on two previous occa¬
sions. It was under .Mr. Lake’s presidency that
the organization got its start and grew to some¬
thing of the importance in the coal field that it
has filter cotne to occupy. 11 is return to that
position is a warrant of the contituied success of
the organization.
At the same time, it is indicated by the resolu¬
tions, that the recommendations of H. 11. Dean,
the president of the organization, are very highly
considered by the members of that organizatioti.
lie said, for e.xample, that the different depart¬
ments should be luit upon a paying basis. There
is an echo of this same idea iti the resolutions.
They say that each department should be self-
supporting and therefore it is apparently up to
the e.xecutive committee to devise a plan by
which the revenues of the association may he en¬
larged.
The new official roster of the association is:
President — Robert Lake, Jackson. Mich.
V'ice- President — Chas. T. Harther, Toledo,
Ohio.
Treasurer — W. Gipson, Upper Sandusky,
Ohio.
.Secretary — R. fi'. Nigh, Columbus, Ohio.
Board Members.
Michigan.
Wm. Brown, St. Joseph, Mich., to succeed him¬
self.
11. P. Gaukler, Pontiac, Mich., to fill the unex¬
pired term of Robert Lake.
Ohio.
Homer C. Gill, Columbus, Ohio.
Indiana.
11. \\’. Kelley, Angola, Ind.
N. S. Longworth, Fort Wayne, Ind., to fill the
unexpired term of H. B. Wolfe.
Executive Committee.
11. Bauknecht, Aluskegon, Alich., chairman.
W. F. Voegele, Mansfield, Ohio.
11. W. Kelley, Angola, Ind.
The resolutions adopted by the association were
as follows, these being prepared by a committee
consisting of W. F. Voegele and J. W. Land-
strum ;
Resolutions.
‘‘Your committee congratulates this association
ui)on its splendid convention both in spirit and
enthusiasm and trusts that its deliberations may
Sunday Creek Coal Comp
The accompanying photograph is of the sales¬
men of the Sunday Creek Coal Company who
attended the Michigan-Ohio-Indiana Coal Deal¬
ers’ -Association at Cedar Point. Retiding from
left to right, they are : Back row standing —
prove an inspiration to each and every one of its
members, to the end that the next convention will
be even greater, and your committee offers the
following resolutions ;
"I. That we commend the faithful service and
good administration during the past year of our
president, secretary and treasurer, and believe
tluit very much of our success is due to their
efforts.
“2. We recommend that the executive board
of this association be directed to devise ways and
means to increase our financial receipts, so that
more active work may he done in the field, secur¬
ing a traveling secretary if necessarv to the end
that our membership may he largely increased
and all ‘of our bills paid promptly.
“.3. We commend the various valuable coal
trade press and urge not only the members of our
association, but every coal dealer to subscribe for
one or more of them, thereby keeping in closer
touch with those things that are interesting and
valuable in the conduct of their business.
“4. We desire to thank the various commit¬
tees who have taken part in so successfully ar¬
ranging and conducting this convention and the
social features thereof, and further we appre¬
ciate and wish to thank the men who have so
ably addressed the convention.
We most hearily thank Mr. G. A. Boeck-
ling, manager of the Cedar Point Resort Com¬
pany, and his able assistants for the many cour¬
tesies and entertainment extended to our asso¬
ciation during its session here.”
M-O-I Convention Notes.
The Glen Alum Fuel Company was repre¬
sented by F. W. Diebel.
E. D. Scott, western agent for the Skeele
Coal Company, was here.
R. W. Tuttle of the P. & R. Coal & Iron
Company was among those present.
C. B. Ebhert, Chicago manager for The White
Oak Coal Company, was among the Chicago dele¬
gation.
Jas. Reilly of the Queen City Coal Company
of Cincinnati was among the Cincinnati dele¬
gation.
Geo. B. Rogers, representing the W. H. War¬
ner Coal Company of Cleveland, was in at¬
tendance.
Geo. S. Payne of the Blue Ash Coal Company
of Cincinnati, Ohio, exhibited his Naugatuck
coal to excellent advantage.
L. Z. Netzorg and Mrs. Netzorg, a coal
family, came ov^er to the Point in the interests
of the Warner Coal Company.
The usual quota of selling interests were
present but the dealers were here also. Homer
any Men at Cedar Point.
R. D. Teele, N. E. Arnold. Front row seated —
R. R. Andrews, George F. Schwartz, P. A. Coen,
J. R. Fitzer, James A. Greenwald, M. J. Galla¬
gher, H. G. Walbolt, H. D. Thomas. They heliied
to entertain the visitors.
C. Gill and Leo A.. Roberts of Columbus were
in evidence as well as A. B. Meyer and John
George of Indianapolis, -Arthur -Ainsworth
of Grand Rapids and Julius Knack of Detroit,
also Sam Davis of Toledo, while Dan R. Lontz
and wife journeyed over from South Bend.
The New Pittsburgh Coal Company of Co¬
lumbus are to be congratulated in sending J.
.A. Rundio and .A. W. Marshall to represent
them.
Col. M. T. Roach of the Logan Pocahontas
Coal Company of Charleston came over early
Monday. Mr. Roach found a great many of
his old friends here to greet him.
J. M. Leonard, sales manager of the Broth¬
ers Valley Coal Company, journeyed from New
York. Mr. Leonard is appreciative of the favor
being shown Pen Mar in the western territory.
The Susquehanna Coal Company was rep¬
resented by C. L. Thompson, general western
agent, who was accomnanied by Homer Allen of
the Erie office, and William Blair of the Chicago
branch.
Uncle Dan Howard journeyed all the way
from Clarksburg, W. Va. Uncle Dan has evi¬
dently found the fountain of perpetual youth,
as he looked more fit today than a lot of the
new recruits.
D. H. Jenks of the Producers Coal Company
of Cincinnati showed his loyalty by making it
possible to be in attendance. The picture
wouldn’t be complete without the presence
of our friend “Hugh.”
It looked for a time as though the genial J.
-A. Ballard, of the Semet Solvay Company, would
be among the missing, hut Mr. Jim showed up on
Wednesday and saved his well earned reputation
for loyalty to the coal trade in general.
B. F. Nigh, secretary of the association, cer¬
tainly came in for his full share of praise, not
only for the splendid showing made during his
past year in office but for the efficient manner in
which the convention itself was conducted. Mr.
Nigh is making good and is deserving of it all.
H. W. Kelley of Angola, Ind., was present
with_ Mrs. Kelley. We missed Mr. Kelley’s
classic this year and if it wasn’t an imposition
Air. Kelley should be given a subject for each
convention.
Nc'w Coal Mine Companies.
-Ashland, Ky. — The Dunlap Coal Company was
recently incorporated for $10,000. The officers
are S. S. Willis, president; E. P. Rice, vice-
president, and C. C. Page, secretary and treasurer.
The properties are located in Letcher county,
Kentucky. No development will be undertaken
at present, as this is a holding company.
Slab Fork, W. Va. — The Slab Fork Coal Com¬
pany is putting in substations and will buy power
from the Virginia Power Company. The com¬
pany recently bought some electrical equipment.
Charleston, W. Va. — The Coal River Colliery
Company is the name of a recently incorporated
concern with a capital of $50,000. The present
address is No. 3 Odd Fellows building. Charles¬
ton, W. Va. . The officers are W. C. Sharpe,
president; John P. Vaughan, secretary, and A. P.
Sharpe, treasurer. It is a drift mine located in
Boone county. West Virginia, on the Coal River
branch of the Chesapeake & Ohio Railway.
Development is expected to begin within sixty*
days, and cost of eiiuipment for present plans will
he ai)out $35,000. W. C. Sharpe, who is general
manager, will be in charge of the operation.
Pekin, Ill. — The Ubben Coal Company, which
has been a partnership for the last year, was re¬
cently incorporated for $25,000. The new firm
contemplates installing some new machinery, and
increase the output of the mine.
Pulaski, W. Va. — The Wallin Coal Corporation
was recently incorporated for $10,000. The in¬
corporators are H. Hardaway, J. F. Wysor and
O. P. Jordan. The charter is for leasing pur¬
poses and not for operating.
Johnson City, Tenn. — The Blue Grass Coal
Corporation is the name of a new firm recently
incorporated for $100,000, chartered. The officers
are S. R. Jennings, president; H. K. English,
vice-president and C. H. Anderson, secretary and
treasurer. The mines are located at Hazard, Ky.,
and are drift propositions. The mines are now
being run on an operating basis, in immediate
charge of H. K. English. There will probablv
be an expenditure of $50,000 in development
work.
Independence, AIIo. — The DeCourcy-Loveland
Coal & Alercantile Company has been recently in¬
corporated for $10,000. The company does not
operate any mines at present, and conduct a
wholesale and retail coal business. J. DeCourcy
is president and E. R. Loveland, secretary.
No. 1]
THE BLACK DIAMOND
5
Getting the Farmers’ Trade.
A young man who had decided to go into the
coal business in a large city of the central west
looked about for a good location. At first glance,
all of them seemed to be taken. Most of the
real “strategic points” had been occupied by
others.
After considerable cogitation, however, the
prospective dealer realized that the locations
which the coalmen had taken were good chiefly
with respect to city deliveries. In other words,
the yards had been placed where they were ac¬
cessible to large numbers of urban consumers.
But he also appreciated the fact that there were
many consumers who lived outside of the city.
The locality happened to be prominent in the
truck gardening field, and hundreds of small
farmers, operating “patches” of from ten to fifty
acres of land, cultivating potatoes, onions, cab¬
bage, etc., drove in from the country regularly
with their produce.
The new man finally decided that he would
make a special play to these small farmers, in¬
stead of exclusively to the city trade, but that he
would be in a position to take some of this
also. So he located a yard on the outskirts of
the town, where he could get the suburban busi¬
ness, but principally with an eye to the numer¬
ous truckers’ wagons which passed there.
He put out a sign advertising his coal, not de¬
livered, at a price which was, of course, con¬
siderably below the regular retail prices. The
farmers, who had been neglected previously,
had been accustomed to “clubbing” in the pur¬
chase of a car, having it delivered at some con¬
venient siding, and then loading their wagons
from it. But this took a lot of time and was
unsatisfactory in other ways, especially as to
disposing of the nut and slack in the bottom of
the car. Hence the offer of the new dealer
sounded good to them, and they took advantage
of it.
It was not long before he had a lot of regu¬
lar business of this kind, and in the meantime
he had also been cultivating the residence trade
in his vicinity, so that he had a respectable ton¬
nage, all of a desirable character, in a little
while. .
One advantage of the farmers’ business was
that it was all cash. The truckers got paid in
coin of the realm for all of the produce they
sold in town, and they were prepared to pay for
the coal they got in the same way. Thus the
dealer was relieved at the start from collection
troubles, and was probably able to finance his
business much more easily than he would have
been if he had had to put a part of his capital
into accounts.
If you have been overlooking the farmers near
your town, try to attract their favorable at¬
tention.
Coal Dealers “Scratching Gravel.”
In one city which may or may not be typical,
four coal dealers have decided within the past
year or two to get into the sand and gravel busi¬
ness.
Their decision has been based upon first, in¬
adequate profits in the coal business; second,
a long dull season; third, the fact that the same
equipment may be Used in handling sand and
gravel as coal ; and fourth, increasing demand
for that material in construction work, due to
the increased amount of concrete construction
going on.
A coal dealer who recently decided to put a
considerable amount of capital into a gravel¬
handling plant, with elevating equipment, hop¬
pers, washing equipment, etc., explained that he
had to do it because of the long periods of
idleness in the retail coal business.
“Even though we manage to keep our teams
busy a good part of the time during the sum¬
mer with storage trade,” he said, “there are
long spells during which we cannot keep them
going. Of course, there may come times when
we will have so much business of both kinds that
there will be difficulty taking care of it; but I
figure that too much business is far better than
too little, and, besides, there are usually extra
teams to be hired. Frankly, I think the two
will work well together, and will enable us to
take care of our fixed expense much better.”
One angle on the proposition, namely, that of
employing idle teams, suggests that the plan
used by another coal concern, referred to re¬
cently in this department of The Black Diamond,
whereby a separate teaming company was or¬
ganized to handle this feature, ought to meet
this situation.
Eliminating Teaming Investment.
In some cities the actual delivery of the coal
is in the hands of teaming companies organized
for this special work, the yard business and the
delivery ends being separate and distinct busi¬
nesses. But usually, and in practically all of
the smaller communities, the coal dealer owns
the yard and the wagons and horses, and handles
the transaction from the purchase of the coal
to its delivery at the home of the consumer.
In one city, not among the largest, there is
one dealer who has reversed this situation, al¬
though the custom there is for every concern
to own and operate its own delivery equipment.
He started in the business modestly, having a
suburban yard, and in order to keep his troubles
down to the minimum, he made arrangements
with the owner of an express wagon to look
after the deliveries. As the business grew other
wagon-owners took up the work, and now all of
the deliveries are handled by this method, a
line of wagons being located outside the yard,
constantly ready for service.
The dealer does not get their exclusive serv¬
ices, of course, but pays fifty-five cents a ton
for deliveries. A few of the wagons are regu¬
larly built for coal deliveries, but most_ of them
are ordinary express wagons, the carrying capa¬
city of which is enlarged on occasion by putting
on side-boards. The expressmen get business
by telephone, the dealer allowing them to have
calls come in over his wire; and thus, in spite
of being out of the beaten path, they are able
to get enough odd jobs of hauling and moving
to keep them busy at times when they are not
needed at the coal-yard.
The plan seems to have been mutually satis¬
factory, and the dealer is especially happy over
not being compelled to put money into teams and
wagons. The amount he pays for the service
seems reasonable enough, and the fact that the
owners' of the teams drive the wagons ought to
make for a little better service, in spite of the
fact that they are not the direct employes of
the coal company, than is given when the drivers
are rather irresponsible, and have no interest in
taking particularly good care of the teams or
the property of the customer.
Building an Organization.
Some men with a stenographer and a collector
will refer in proud tones to their “organization.”
But even in the most modest business the pro¬
prietor should remember always that he must
delegate some of his duties, and that the se¬
lection of the proper ones to turn them over to
is one of the important features of his work.
The man who imagines that he is the only
one capable of running the various departments
of his business, and who has as his slogan, “If
you want a thiag done well, do it yourself,” is
likely to find that his physical capacity is not
able to keep pace with the growth of his busi¬
ness. The only sort of enterprise he can run
successfully is a small one, because when the
volume gets too big, he is sure to be lost in a
mass of details. Besides, the physical and men¬
tal strain involved in trying to keep in mind and
actually attend to a myriad of things that
others could do just as well, is so great that
there is bound to be a breakdown some time.
There is a certain coalman in a big city of
the Ohio Valley, who illustrates this proposi¬
tion exactly. He has a splendid physique, keen
intelligence, and great aggressiveness. He has
built up a big business, and because he has many
friends, and looks after his trade well, he has
seen the concern grow steadily and take a place
with the leaders in the community. But he is
doiag just as much of the work now as he ever
did. He gets up early in the morning and is
first at the coal-yard, starting the drivers out
on their early runs. Then he goes home to
breakfast, and jumps in on the details again
afterwards. If a team gets in trouble, he is as
likely as anybody to get on a street-car and
literally put his shoulder to the wheel in order
to straighten it out. If a customer complains
about her lawn being cut up by a fractious team
or a bone-head driver, he goes out personally
to attend to it and make the necessary adjust¬
ment. He writes out most of the bills himself,
and about the only thing he doesn’t do is actually
shovel the coal. And he has been known to un¬
dertake that at times, just to illustrate the proper
method of doing it.
This dealer is a success; but the price of suc¬
cess to him is less sleep than he deserves, and
possibly less profit. If he ever realizes that he
can hire men to do the things he does, and that
he can devote his time, with a mind free from
the relatively unimportant details that now de¬
mand his constant attention and effort, to the
really big things of the business, he is going to
get to the top. But there is no indication that
he expects to change his present policy.
Nothing breeds ability and self-confidence like
responsibility. Tell a man that he has to do a
thing, and will be held responsible for results,
and even though he has shown only mediocre
ability in a routine job, he is likely to rise to
the occasion in fine style. The best he has will
come to the surface. The coalman who is try¬
ing to do it all himself is letting the latent
ability of his employes, who are capable of han¬
dling bigger things, go to waste, as well as de¬
priving himself of the freedom to which he is
entitled.
The Value of a Trade-Mark.
A trade-mark which illustrates a brand can
be made so familiar to the public that it will
come to stand for the concern handling it as
well as the goods.
This has been illustrated in the case of a
retailer who has been selling coal under his
private brand. Red Fox. He has used the pic¬
ture of a red fox in all of his advertising, with
the name printed across the body.
Consequently his local public has been asso¬
ciating the picture with the name, the name
with the picture, and both with the concern
selling the coal.
This has enabled him to do a good many
things which no dealer could think of doing
otherwise. For instance, he often advertises
without using his own name, but simply pub¬
lishing a cut of the familiar red fox, giving
the price of the coal and the telephone num¬
bers of his concern. In his billboard advertis¬
ing, of which he does considerable, the big
red fox is always the principal thing on the
boards.
Pictures are easily remembered, whereas a
phrase might be forgotten. The two together
— the trade name and the trade-mark — make a
winning combination.
Accountants employed to make an audit of
the property of Josiah V. Thompson of Union-
town are now making an investigation of his
West Virginia holdings. Wetzel and Marshall
counties have already been covered. Mononga¬
lia, Harrison and Doddridge and other counties
will be taken up. The work is being done under
the supervision of Attorney Waitman H. Cona¬
way of Fairmont.
[July 3
Judge Kunkel’s Decisions on Anthracite Tax
6
A short time ago Judge Kuiikel in a trial couit
ill Pennsylvania handed down a decision on the
anthracite tax case. That decision upheld the
right of the state in every particular to impose
this tax. Naturally the ruling was contested and
the case was carried on appeal to the higher
It is now being heard in the United States
courts and the decision will come along in due
course. This makes the decision of Judge Kun-
kel of interest and it is as follows
Commonwealth of Pennsylvania vs. Alden
Coal Company. In the Court of Common
Pleas of Dauphin County, No. 61 Common-
w'ealth Docket, 1914.
By the Court;
This is an appeal from the settlement by the
accounting officers of the commonwealth
against the defendant for the tax on anthracite
coal which it mined and prepared for market
during the period beginning June 28, 1913, and
ending December 31, 1913. It has been sub¬
mitted to us for trial without a jury. We hnd
the facts to be as follows:
Facts.
The defendant is a corporation of this state
and operates only in Luzerne county, where, it
mines and prepares anthracite coal for market.
On June 30, 1914, pursuant to its report to the
auditor general made January 31, 1914, [hs
present account was settled against it, in which
it was charged with a tax of $7,791.86, being
two and one-half per centum on 137,017.8 tons
of coal prepared for market, of the value of
$311,714.42. It presented its petition for a re¬
settlement, in accordance with the provisions
of the Act of April 9, 1913, P. L. 48, which
was refused. Whereupon it took this appeal.
Before it made its report of the number of
tons of coal prepared for market and the
value thereof, and before this settlement was
made against it, it had sold the coal and was
no longer the owner thereof, and of the 137,-
017.8 tons of coal, 103,018.9 had been shipped
out of the state. These are, we think, the ma¬
terial facts. There are, however, other facts
wliich we have found and which appear by our
answers to the commonwealth’s and defend¬
ant’s requests for findings of fact filed here¬
with.
Discussion.
The commonwealth’s claim for the tax in
dispute rests upon the Act of June 27, 1913, P.
L. 639. By Section 1 of the Act every ton of
anthracite coal prepared for market in this
commonwealth is made subject to a tax of
two and one-half per centum of the value
thereof, the tax to be settled and collected as
provided by law for other state taxes. By
Section 2 every operator of an anthracite coal
mine or mines in the state is required to re¬
port in writing and under oath to the auditor
general, in the month of January in each year,
the number of tons of anthracite coal mined
by him or it within the calendar year then
next preceding, and the value thereof prepared
for market. By Section 3 the failure to report
within the time required is visited by a pen¬
alty of ten per centum on the tax; and an in¬
tentional failure to make the report is de¬
clared to be a misdemeanor, punishable, upon
conviction, by fine or imprisonment. By Sec¬
tion 4 an appeal is given to the operator from
the settlement of the account for the tax. By
Section 5 it is provided: “Each county shall re¬
ceive from the state treasurer, for the use of
the several cities, boroughs and townships
thereof, one-half of the said tax collected from
operators in said county; and the treasurer
thereof shall, within thirty days thereafter, pay
over the same to the treasurers of the several
cities, boroughs and townships in said county
pro rata according to their respective popu¬
lations as shown by the last preceding United
States census,” Many objections have been
raised to the validity of this statute, which
we will consider as briefly as possible.
Title of the Act.
1. The statute is assailed on the ground that
it contains more than one subject, that its title
is defective, and that in these respects it vio¬
lates Section 3 of Article III of the Constitu¬
tion. In Booth & Flinn vs. Miller, 237 Pa. 297,
it was said; “It is not an infringement^ of Ar¬
ticle III, Section 3, of the Constitution, if there
are several provisions in a bill providing they
THE BLACK DIAMOND.
are connected with and germane to the one
general object of the legislation. It is suffi¬
cient if they relate to and are a means of car¬
rying out the one general provision of the
.\ct.” And in Commonwealth vs. Powell, et
al., appealed from this court, and affirmed by
the supreme court but not yet reported, it
was said: "No argument should be required
to show that provision for attaining various
objects which relate to the general subject of
a bill may be dealt with, by its terms, without
laying it open to the charge of containing
more than one subject.” The general subject
of the present Act is the taxation of anthracite
coal. The provisions for the collection and
disposition of the tax relate to that subject.
They cannot be viewed as other subjects under
the doctrine above stated.
The objection that the title of the Act is
defective because there is no notice _ given
therein of the penal provision for failing to
make the required report is not tenable. The
report is an important step toward collecting
the tax. The penal provision is the means of
enforcing the production of the report. It is
auxiliary to the collecting of the tax of which
notice is given in the title. It is necessarily
covered therefore by such notice. The high
license law entitled “An Act to regulate and
restrain the sale of • • • liquors” contains
penal provision for its enforcement, but no
notice thereof is given in the title. No one
ever successfully ruestioned the sufficiency of
that title, although there is no specific or
express notice given therein of the means
provided for enforcing it. Many other in¬
stances of like kind might be cited, but this
we think is sufficient.
2. It is further objected that the Act does
not require the defendant to pay the tax. It
is true there is no express requirement that
the operator shall pay and in this respect the
Act is crudely drawn, but an examination of
its provisions leave no doubt of the legisla¬
tive intention. The operator who prepares the
coal for market is required to report the num¬
ber of tons mined and the value thereof, the
accounting officers are authorized to settle
the account for the tax, and the operator is
given the right to appeal from ths, settlement.
Why give him the right to appv^jl" ;§ not
interested in the account and the ^ount is
not against him and if he is not to pay? That
it was the intention of the legislature that he
should pay is, we think, manifest.
Local Legislation.
3. We have carefully examined and consid¬
ered the proposition that the Act is local and
special legislation, but we are not able to agree
with it. The Act imposes a tax on anthracite
coal. It in no way purports to legislate for
any particular locality. The fact that anthra¬
cite coal is now found in only nine counties
of the state does not render it a local Act. An¬
thracite coal may be found in other counties
in the future, and even if this be not so an
Act is not local which operates in every coun¬
ty of the state where the subject of the tax is
found. There is no indication that the Act was
not passed in good faith or was passed to
avoid the constitutional inhibition against lo¬
cal or special legislation. The authorities cited
by the defendant in support of this objection
have no application to the present case. Those
were cases where the legislation in terms_ re¬
ferred to counties and other municipal divis¬
ions of the state, and a law that applied to
some and not to others was of course held to
be a local law and violative of the constitu¬
tion; or where the counties or divisions men¬
tioned in the legislation were so described as
to embrace some counties or divisions of the
state and not others, in which even the law
was declared to be local. In the case before
us, however, there is no attempt to legislate
for any counties, cities, boroughs, etc. The
Act refers to anthracite coal and its taxation.
If it referred to all coal, the same objection
could be made against it, because in many
counties of the state no coal of any kind is
to be found.
It is further argued that the Act is a local
law regulating the affairs of counties, cities,
etc., and violates Section 7 of Article III of
the constitution. We fail to understand how
it can.be said to regulate the affairs of coun¬
ties, cities, boroughs, etc. As we have said, it
does not purport to refer to counties or any
municipal division of the state. It makes no
attempt to regulate the tax of any such di¬
vision. It imposes a tax for state purposes.
On its face it deals with a state affair. It is
nothing more nor less than legislation for the
purpose of raising state revenue. If it is to
be condemned as a local Act regulating the
affairs of counties, etc., it follows that the leg¬
islature may not subject to taxation any prop¬
erty unless it be found in every county in the
state, a proposition not to be entertained for
a moment, and one the mere statement of
which is its own refutation.
Again, if it be considered a local Act, al¬
though not regulating the affairs of counties,
such as may be enacted by proper publica¬
tions, then it amounts to this, that the legisla¬
ture may not subject to taxation any property
unless such property be found in every county
in the state, without- publication in conformity
with the constitutional requirement.
Furthermore, if it be suggested that the Act
is local and special legislation because the
distributive section. Section 5 applies only to
the cities, boroughs and townships, in the coun¬
ties in which the coal is mined, we can only
say we are not aware of any obligation on the
part of the legislature to give notice by pub¬
lication, before passage, of every bill by which
the state revenues are distributed or by which
appropriations are made therefrom to specific
objects. If this be the law it has never been
observed, and failure to observe it is a strong
argument against the defendant’s position. Nor
have we been referred to any authority which
holds that such a law is a regulation of the
affairs of counties, cities, etc., in violation of
the constitutional prohibition.
Double Taxation.
4. The objection that the coal here taxed
was represented in the capital stock of the de¬
fendant on which it paid or will pay a capital
stock tax, and that therefore the Act imposes
double taxation, is not necessarily a fatal ob¬
jection. Whether a double taxation is im¬
posed by the Act is quite immaterial. The
power of the legislature to impose double
taxation is well settled. The only question
here is whether the legislature so intended. It
must be presumed that the legislature knew
that the coal taxed by this Act might be in¬
cluded in the valuation of the capital stock
for the capital stock tax, and if it knew this
and passed the present statute with such a
knowledge it is quite plain it intended to im¬
pose double taxation. But the coal taxed by
the Act might or might not be included in the
valuation of the capital stock. That would
depend upon whether or not it was in the
state or owned by the defendant during the
period from November 1 to November 15 of
the year for which the tax was settled. Within
that period the appraisement of the capital
stock for state taxation is required to be made.
Com. vs. Railroad Co., 145 Pa. 74. If the coal
was not owned by the operator or was not
in the state during that time it could not
properly be included in the appraisement of
the capital stock, Penn. vs. Delaware R. R.
Co., 198, U. S. 341, in which case there would
not be double taxation. It is manifest, there¬
fore, that it is in the power of the operator,
by disposing of the coal before the period be¬
ginning November 1 and ending November 15
in each year, or by removing it from the state
before that period, to readily avoid the double
taxation which is made the basis of this com¬
plaint. We do not think the complaint has
any real merit, as the double taxation does
not necessarily result from the legislation and
mav be avoided by the Act of the operator.
Uniform Taxation.
5. It is further contended that the Act in
question is in conflict with Sections 1 and 2
of Article IX of the State Constitution and
of the Fourteenth Amendment of the Federal
Constitution, because it imposes a tax on an¬
thracite coal and not on coal generally. It is
argued that coal may not be classified for taxa¬
tion as anthracite coal and all other coal be
exempted from the tax under these constitu¬
tional provisions, and that such a tax is not
uniform. If the classification be allowable the
objection of the lack of uniformity and the
No. 1]
THE BLACK DIAMOND
7
resulting exemption complained of must fail.
Necessarily the classification of property or
persons for taxation, and the subjection of
the members of a class and the property within
the class to taxation, excludes or relieves from
such tax all property or persons not embraced
in the class. This is not the kind of exemp¬
tion, however, against which Section 2 of Ar¬
ticle IX is directed.
On the question of the right of the legisla¬
ture to classify for the purposes of taxation,
the authorities are numerous and need not be
referred to at length. We think it is sufficient
to refer only to the case of Knisley vs. Cot-
terel, 196 Pa. 614, where, quoting from Seabolt
vs. Commissioners of Northumberland County
187 Pa. 318, it is reiterated: “Classification is
a legislative question, subject to judical re¬
vision only so far as to see that it is founded
on real distinctions in the subjects classified,
and not on artificial or irrelevant ones used for
the purposes of evading the constitutional pro¬
hibition. If the distinctions are genuine the
courts cannot declare the classification void
though they may not consider it to be on a
sound basis. The test is not wisdom, but
good faith in the classification.” It is quite
clear that the distinction between anthracite
coal and other kinds of coal is not a fictitious
one. It has arisen among those who have
mined, dealt in and used coal. It is a dis¬
tinction so common as to be recognized the
world over. The classification of anthracite
coal, therefore, as a subject of taxation can¬
not be said to be artificial or may not justly
be subjected to the charge of being used for
the purpose of evading the Constitution. What
the legislature did in enacting the present
statute, was but to adopt a distinction already
existing respecting the property made subject
to the tax. The same distinction has been ^
recognized by the legislature and sustained
with respect to the business of mining an¬
thracite coal and of mining bituminous coal.
The difficulty in some instances to differ¬
entiate between anthracite coal and semi-an¬
thracite or semi-bituminous coal can have no
effect on the question of classification.
Whether or not the particular coal sought to
be taxed in a given case is anthracite and falls
within the Act must necessarily depend upon
the facts of such case.
We are of the opinion that the classification
of anthracite coal for taxation is a legitimate
one and that the taxation of such coal as
distinguished from all other kinds of coal is
not a violation of the constitutional provisions
referred to.
Disposition of Funds.
6. By Section 5 the tax, when collected, is
distributable to the cities, boroughs and town¬
ships in the several counties where the coal is
mined. The result of this distribution will be
to give annually to some of these municipal
divisions sums of money equal to, and in some
cases greater than their total municipal ex¬
penditures, thus relieving them in part, and
possibly in whole, from local taxation. This
also, it is contended, is in violation of Sec¬
tions 1 and 2 of Article IX of the State Con¬
stitution, which provides for uniformity of
taxation, and declares void all laws ex¬
empting property from taxation other than the
property enumerated therein. The citizens of
these municipalities will, however, still be sub¬
ject to some local taxation and to taxation
for state purposes. If so, the relief thev will
receive from the tax is not prohibited. These
constitutional provisions have no application
to tlie conditions which may arise from the
enforcement of the present statute.
7. F.ven if all the objections thus far raised
to the Act prove ineffectual to destroy it, the
further objection is urged upon us that as Sec¬
tion 5 distributes one-half of the tax to the
several municipalities of the counties wherein
the coal is mined, the defendant’s property
will thus be taken and given over to others,
and thereby it will be deprived thereof with¬
out due process of law. We do not take this
view of the case. The Act is a measure to
raise revenue and at the same time provides
for the distribution of the funds so raised to
certain municipalities. If the purpose for
which the tax is levied is a public one there
is no doubt of the power of the legislature to
impose the tax. One-half of it is to be used
for the state generally. The other half the
state proposes to pay over to certain mimi-
cipalities. To pay money to its municipal
divisions seems to us to be using it for a
public purpose. These municipalities are the
creatures of the state, erected by the legis¬
lature, for the purpose of administering, and
clothed with the power to administer public
affairs in their respective localities. They rep¬
resent the state. It must be conceded that
the state may authorize them to levy taxes to
meet the expenses of administering their local
government. If so, why may it not also take
out of its general revenue no matter how
raised, and give to them in aid of what they
are doing in representing the state? This the
state has frequently done. It has distributed
for years from its revenues to the several
school districts. It distributes out of the same
revenue to charity and benevolence. It has
divided with the counties the tax on personal
property which it collected. It distributes
to the several counties and townships from its
general revenues in aid of the public high¬
ways. It appropriates one-half of the tax on
premiums of foreign fire insurance companies
to the several municipalities of the Common¬
wealth, Act of June 28, 1895, P. L. 408. Other
instances of the same kind might be cited.
Who is to direct how the state revenues raised
by taxation are to be distributed or disposed
of? This is_a question as to which the Courts
agree. It is exclusively for the legislature,
bound only by such restrictions as are placed
upon it by the organic law. It is a power the
exercise of which the judiciary have no right
to revise. If Section 5 stood as a separate
Act, distributing the taxes raised under the
Act in question, what standing would the de¬
fendant have to complain? The statute does
not present the case where the property of
one is taken and applied to the use and benefit
of another, but presents the case where prop¬
erty is taxed by the Commonwealth and the
revenues thus raised are distributed where, in
the judgment of the legislature, seems right
and proper. In State vs. Western Union Tele¬
graph Co., 73 Maine, 518, under a statute of
that state, telegraph companies were required
to pay into the state treasury a tax of two
and one-half per centum on the value of their
property within the limits of the state. The
tax thus raised was directed to be distributed
to certain towns in the state in the proportion
which the number of shares of stock of the
company owned in the town bore to all the
shares owned in the state. The remainder of
the tax was to be retained for the use of the
state. The effect of this provision was to give
the revenue so raised to three towns of the
.state, whereby the tax of every individual in
the three towns was ratably diminished. The
same objection to the validity of the statute
was made there as is made here, that it took
the property of some citizens and used it for
the benefit of others. To this objection it was
said by the Court: “It is objected in this
case that the distribution of this tax as pro¬
vided in the Act shows that it is not for a
legitimate purpose. What distribution is con¬
templated is somewhat difficult, perhaps im¬
possible, to ascertain from the Act itself. If
it is all to go to the towns it would still be
a public purpose. But that is not the matter
which is now involved. The tax is now im¬
posed by the state and is to be paid to the
state treasurer as other public funds. It then
becomes a public fund to be used for public
purposes. If diverted from that the remedy
is not by refusal to pay. If the last section
of the Act should prove to be a violation of
the Constitution or void for uncertainty, it
does not affect the remainder. This is not a
case where one district is required to pay the
tax for the support of another. It is like one
excise tax raised in any part of the state to
be appropriated by the state wherever its needs
or its sense of justice may require.”
The purpose of the present taxation being a
public one, the legislature possessed the power
to levy the tax and the distribution thereof is-
alone within its control.
Matter of Ownership.
8. A further objection to the recovery by
the Commonwealth on this settlement is that
the coal reported by the defendant, upon which
the value of the tax is computed, was not
owned by it at the time the report was made,
nor at the time the settlement was made
against it, and that when it made its report a
great part of the coal was outside of the state
and beyond the taxing jurisdiction of this
state. This objection is based upon what we
think is an erroneous construction of the Act.
The tax is levied by the Act. The rate is fixed
liy the Act. The taxable value of the coal is
as prepared for market. The coal is made
subject to the tax. not as contended by the
defendant when the quantity and value are
reported, nor when the settlement is made, but
in the language of the Act itself “when pre¬
pared for market.” At that time its value is
to be ascertained, but the report thereof is
postponed until the end of the year. If this
be not the true construction of the section the
phrase “when prepared for market” adds noth¬
ing to its meaning. What precedes sufficiently
declares that the rate is to be upon the value
of each ton as prepared for market. The
phrase “when prepared for market” manifestly
relates to the words “shall be subject to,”
meaning the coal shall be subject to the tax
when it is prepared for market. This being
the proper construction, the defendant’s coal
became subject to the tax when it was pre¬
pared for market. This being the proper con¬
struction, the defendant’s coal became subject
to the tax levied by the Act when it was pre¬
pared for market. It was then the defendant’s
duty to ascertain the number of tons and fix
the value at that time. The ascertainment
of the value at that time amounted to an as¬
sessment. No other assessment was needed.
Being made by the defendant, it has no room
to complain. Com. vs. McKean County 200
Pa. 383. The coal was subject to the tax
when it reached the stage of being prepared
for market and its valuation was to be made
at that time. The removal of it. therefore,
from the state, or the sale of it to another,
after that time, would not relieve the de¬
fendant, who was the owner at the time the
tax was levied and assessed, from paying it;
nor could it avoid liability by failing to assess
and value the coal at the time the statute re¬
quired it to be done.
We assume that the quantities and values
reported by the defendant are such as the Act
required it to report and that they are correct.
There is no suggestion to the contrary. A
settlement, therefore on the basis of its own
report cannot be open to objection in respect
to these particulars.
Conflicting Regulation.
9. We are unable to see how the Act con¬
flicts with Article 1, Section 8, of the Fed¬
eral Constitution, respecting the power of
Congress to regulate commerce among the
several states. In Coe vs. Errol, 116 U. S.
515, it was said: “Goods, the products of a
state intended for exportation to another state,
are part of the general mass of property of
the state of their origin until actually started
in course of transportation to the state of
their destination or delivered to a common
carrier for that purpose.” If we be right
in our construction of the Act, the coal here
sought to be taxed became subject to the tax
at the time when it was prepared for market,
and so far as it appears, that was before it
was actually started in- the course of transpor¬
tation from the state.
10. Nor does the Act violate Clause 5, Sec¬
tion 9 of .A.rticle 1 of the Federal Constitution
which provides that “No tax or duty shall be
laid on articles exported from any state.” This
provision is limited to articles exported to a
foreign country.
As mentioned in The Black Diamond but re¬
cently, a Brooklyn alderman introduced a resolu¬
tion to amend section No. 31 of article No. 3 of
chapter 26 of the code of ordinances, relating to
coal and coke, by adding thereto a new sub¬
division. This was introduced by Alderman Gay-
nor, and the amendment proposed is as follows :
“All coal sold or delivered in quantities of one
hundred (100) pounds or less than one hundred
(100) pounds in the city of New York must be
contained in bags, baskets or other receptacles,
and shall have the weight of the contents plainly
marked on the outside thereof in solid Roman
capital letters at least one inch in height, but
charcoal or coke in quantities of one hundred
(100) pounds or less than one hundred (lOO)
pounds may be sold and delivered by standard
dry measure, and in such cases the bag, basket
or receptacle shall have plainly marked on the
outside thereof the capacity in terms of standard
dry measure in solid Roman capital letters ai
least one inch in height, and in violation hereof
shall be punishable by a penalty not to exceed
fifty dollars ($50). Upon a conviction for vio¬
lation of provisions of this section the commis¬
sioner of weights and measures is authorized to
post a sign or placard on the outside of the
offender’s place of business, in a conspicuous
place for a period of ten days, setting forth the
details of the violation of the ordinance. _ Any
person or persons guilty of removing or disturb¬
ing any such sign or placard shall be punishable
by a penalty not to exceed fifty dollars ($50).”
8
THE BLACK DIAMOND
[July 3
Sunday Creek Company Closes Some Mines.
Columbus, Ohio, July \.--{Special Corre¬
spondence.) — No coal news for a long period has
caused a greater sensation than the announce¬
ment just made by the Sunday Creek Company
that it has temporarily abandoned a large section
of the Hocking Valley field, and may in the near
future suspend all operation in Ohio. That this
is something more than talk is proved by the
fact that before the news was actually given out,
on Monday last, the work of removing goods
from the company’s mining stores in the valley
to its West Virginia operations had already
hegun.
Lhider existing industrial conditions, the pres¬
sure of West Virginia and other southern com¬
petition is crushing the life out of the industry
on any large scale in the Hocking valley, if not
throughout Ohio, is the statement of local oper¬
ators.
The Sunday Creek officials give two reasons
for their action. One is the discrimination
against Ohio in the matter of freight rates, as
compared with West Virginia, Kentucky and
Tennessee. These states enjoy a much better
rate per ton mile. This advantage added to the
lower cost of mining in the unorganized fields,
makes it impossible, it is claimed, for Ohio mines
of the same general class to compete. An at¬
tempt was made by John H. Winder, general
manager of the Sunday Creek Company, to put
the condition up to the state legislature last win¬
ter and secure relief in some form that would
protect the coal interests of this state, but little
attention was given the move.
A second ground of action on the part of the
Sunday Creek Company lies in the terms of the
recent settlement made by the Ohio United Mine
Workers with the eastern Ohio field, terminating
a strike which had existed for over a year. Fol¬
lowing the passage of the law requiring a mine-
run .system of weighing coal as basis of pay¬
ment in mining, the Hocking valley operators on
July 3, t014, made settlement with the miners,
but one of the conditions was that settlement
should be made with no other district in the
state on more favorable terms. It is now claimed
by the Hocking operators that the concessions in
rides made to eastern Ohio gives that field a
lower rate of mining than exists elsewhere in the
state.
The Hocking Valley Coal Operators Associa¬
tion, in a communication bearing date of June
39, 1915, signed by John H. Winder, president,
and addressed to John Moore, president of the
Ohio United Mine Workers, calls the latter’s at¬
tention to the clause of the settlement with the
Hocking miners in July, 1914, which provides
that the scale then agreed upon should apply to
all fields. The communication further assumes
that in view of this, tlic Hocking scale will be re¬
duced automatically to place it on an equality
with eastern Ohio.
The reply of the miners’ organization will, it is
intimated by company officials, go far to deciding
whether or not the Sunday Creek will attempt to
operate any mines at all in Ohio. The suspen¬
sion so far includes all of the mines, twelve in
number, on the Hocking side of the valley. Some
have not been active lately by reason of the de¬
pressed market. The T. & O. C. side, which is
threatened with a like fate, has twenty-eight
mines.
Of the mines already idle only two or three
men will be retained, to keep the pumps going.
The company announces with regret the neces¬
sity of parting with a number of old loyal em¬
ployes in official capacity of one form or another
at the mines. At headquarters in Columbus the
large clerical force has been cut to pieces, and
few are to be retained outside of heads of de¬
partments. The traveling sales force has been
taken off the road. The full effect of the move
is not yet apparent, but it is certain that the
Sunday Creek Company is in earnest about
forcing the issue in the grievances which it holds
against the railroad companies and the miners’
union. The action does not mean the permanent
abandonment of the Ohio field, but it does mean
that the company prefers to remain idle than to
attempt production under the present confusion
of dull times and hopeless competition, no matter
how long it may take to secure conditions that
will lift the Hocking valley up to a fair standard
of equality that will permit of profitable mining.
Columbus business interests and those of the
flocking valley outside of mining will feel the
loss keenly, as it was expected that extensive
loading for the lake, with employment of
thousands of idle miners, would begin within a
few weeks.
Bids for and Contracts Let on Coal.
Bids and Contracts.
The successful bidders for the coal supply of
the public -schools of Pittsburgh, as shown by
the awards made last week by the Board of Edu¬
cation, include both producers and retailers, as
per the following list. The prices cover quite a
range, and are anywhere from six cents per
bushel up to six and four-tenths cents, delivered
as per specifications embraced in bid, to the
individual schools, the location of which and the
means and time of delivery, explaining the di¬
vergences shown in the price range. The aggre¬
gate amount approximates 500,000 bushels, and
includes mine run, smokeless, lj4-'nch lump, nut
slack, and slack, as per the requirements of each
])articular school. The names of the firms re¬
ceiving the awards, are as follows :
The Pittsburgh-Buffalo Company.
D. J. Kennedy Company.
Youghiogheny Coal Company.
Junction Coal & Contracting Company.
Keller Brothers.
J. P. O’Niel Company.
Paul Coal & Supply Company.
Thos. A. Owens.
Jas. T. Fox.
Second Pool Coal Company.
W. .S. Bockstoicc.
'P. J. Patterson.
J. M. Cilebrist & Sons Company.
Weiman Brothers.
'I'he United States engineer’s office in Pitts¬
burgh have awarded the contracts for their coal
supply for the coming year to the parties named
in the following specifications. This fuel is for
use at the locks and dams in the Monongahela
and Ohio rivers, and was awarded to the parties
named above each item as numbered below.
To the Clyde Coal Company —
Item 1. — In flat loads on owner’s flat at tipple,
from passing fleet, or delivered at Locks 1 to
!t, Monongahela River, including use of flat
until empty; River screened nut and slack
coal . Per bu. 3 9/lOc
To W'. H. Brown —
Run of mine coal . Per bu. IJ^c
To the Clyde Coal Company —
Item 2. — In flat loads on owner’s flat delivered
at New Lock 6, Monongahela River, includ¬
ing use of flat until empty: River screened
nut and slack coal . Per bu.
To W'. Harry Brown —
Run of mine coal . Per bu. i'Ac
To C. F. Reed-
Item 3. — In wagonloads on owner’s wagon, de¬
livered at United States Boatyard, Lock 4 or
New Lock 4, Monongahela River; River
screened nut and slack coal . Per bu. H'/iC
To Consumers Coal Company — -
Run of mine coal . Per bu. 5.87c
To the Clyde Coal Company —
Item 4. --In flat loads on owner’s .flat, deliv¬
ered at Dam 1, Ohio River, including use of
flat until empty: River screened nut and
slack coal . Per bu. i'/ic
Run of mine coal . Per bu. 514c
Item 5. — In flat loads on owner's flat, delivered
at Dam 7, Ohio River, including use of flat
until empty: River screened nut and
slack coal . Per bu. S'Ac
Run of mine coal . Per bu. Ciyic
Item 6. — On U. S. steamers from tipples
or yards, in Pittsburgh Harbor, or Mononga¬
hela River pools: River screened nut and
slack coal . Per bu. 4I4c
Run of mine coal . Per bu. f>I4c
Item 7. — In flat loads on owner’s flat delivered
in Pittsburgh Harbor, Point Bridge Landing,
including use of flat until empty: River
screened nut and slack coal . Per bu. 4!4c
Rune of mine coal . Per bu. !>'Ac
To Pittsburgh Coal Company —
Item S. — Delivered f. o. b. cars at \V’. Bellevue
or (lien O.sborne, Pa. (P. Ft. W. & C. Ry.):
Run of mine coal . Per ton :(il.50
To the Moreland Coal & Coke Company —
Item 10. — Delivered f. o. h. cars at Legionville,
Freedom (P. Ft. W. & C, Ry.) or Merrill
(C. & P. R. R.), Pa.; Run of mine coal..
. Per ton l.GSyi
Item 11. — Delivered f. o. b. cars at Dam 7,
Ohio River, Midland, Pa. (C. & P. R. R.):
Run of mine coal . Per ton I.Giyi
Item 12. — Delivered f. o. b. cars at Dam 8,
Ohio River, Kenilworth, W. Va. (P. C. C. &
St. L. Ry.): Run of mine coal . Per ton 1.39)4
Item 13.— Delivered f. o. b. cars at Dam 9,
Ohio River, New Cumberland, W. Va. (P. C.
C. & St. I.. Ry.) : Run of mine coal. Per ton 1.39)4
Item 14. — Delivered f. o. b. cars at Dam 10,
Ohio River, Steubenville, Ohio (P. C. C. &
St. L. Ry.) ; Run of mine coal . Per ton 1.24)4
To Pittsburgh Coal Company —
^f®m.l5. — Delivered f. o. b. cars on powerhouse
sjumg. Lock 3, Monongahela River, Elizabeth,
Pa. (P. & L. E. R. R.) : Run of mine
<^oal . Per ton
1.20
All coal must be of uest quality for steam pur¬
poses, reasonably free from slate. The nut and
slack shall be the screenings from run of mine
coal passed over a two-inch screen.
Coal for items 1, 2, 4, 5 and 7 shall be loaded
in craft of such draft and construction as may
be necessary for delivery and hauling at the dif¬
ferent points where needed.
Bidder must state the different points from
which coal for items 1 and 6 may be obtained and
the length of time generally required for de¬
livery after receipt of order.
Wisconsin Contracts.
Recently the State Hospital for the Insane at
Mendota, Wis., opened bids for coal for the fiscal
year from July 1, 1915, to June 30, 1916. There
has been some little misconception as to the firm
which took the major portion of the business.
The following, taken from the official report on
the subject, shows the names of the successful
bidders and the price at which the coal was sold ;
State Hospital for the Insane, Mendota, Wis.—
To C. Reiss Coal Company, Sheboygan, Wis. Bes¬
semer gas screenings . $3.20
Northern Hospital for the insane, State Hospital Sta¬
tion, Wis. —
To Milwaukee Western Fuel Co., Milwaukee, Wis.,
Kanawha gas mine run . 3.40
To Callaway Fuel Co., Milwaukee, Wis., Youghio¬
gheny lump . 3.50
School for the Deaf, Delavan, Wis. —
To Martin Howe Coal Co., Chicago, III., Indiana
egg 3x6-in . 2.r
School for the Blind, Janesville, Wis. — -
To Wasson Coal Company, Chicago, III., Harris¬
burg mine run . 2,70
Industrial School for Boys, Waukesha, Wis. —
Two test cars to be ordered each from following:
Callaway Fuel Company, Milwaukee, Wis.,
Youghiogheny screenings . 2:65
S. II. Benjamin Coal Company, Milwaukee, Elben
screenings . 2.50
f Contract to be held pending result of test.)
State Prison, Waupun Wis. —
To Callaway Fuel Company, Milwaukee, Youghio¬
gheny screenings . 2.80
State Public School, .Sparta, Wis. —
To S. H. Benjamin Coal Co., Milwaukee, Elben
2x3-in. nu) . 3.50
f Above price based on C. & N. W. Ry. delivery.)
Home for the Feeble-Minded, Chippewa Falls, Wis. —
To C. Reiss Coal Company, Sheboygan, Wis., Bes¬
semer gas screenings . 3.20
Bessemer gas mine run . 3.90
Wisconsin State Reformatory, Green Bay, Wis. —
To Barkhausen Coal & Dock Company, Green Bay,
Wis., 54-m. Anchor screenings . 2.70
State Tuberculosis Sanitorium, Wales, Wis. — -
To Milwaukee Western Fuel Company, Milwaukee,
Wis., Kanawha gas mine run . 3.35
Hospital for the Criminal Insane. Waupun, Wis. —
To Callaway Fuel Company, Milwaukee, Youghio¬
gheny screenings . . . . 2.80
(Delivery in all cases to be f. o. b. cars institution.)
TABULATION SHOWING AWARD OF COAL CON¬
TRACTS BY THE STATE BOARD OF CONTROL
For one year, ending June 30, 1916.
Institution, Location, To Whom Awarded. No. tons.
State Hospital for the Insane, Mendota, Wis. — C.
Reiss Coal Co., Sheboygan. Wis . 5,000
Northern Hospital for the Insane, State Hospital
Station, Wis. — Milwaukee Western Fuel Company,
Milwaukee . 4,000
Callaway Fuel Company, Milwaukee, Wis . 500
School for the Deaf, Delavan, Wis. — Martin Howe
Ccal Company. Chicago. Ill . . . 1,600
School for the Blind, Janesville, Wis. — Wasson Coal
Company, 37 W. Van Buren street, Chicago, Ill.. 1,200
State Prison, Waupun, Wis. — Callaway Fuel Com¬
pany, Milwaukee, Wis . 6,00f
State Public School, Sparta, Wis. — S. H. Benjamin
Coal Company. Milwaukee, V/is . ..2,000
Home for the Feeble-Minded, Chippewa Falls, Wis.
— C. Reiss Coal Company, Sheboygan, Wis . 4,500
State Reformatory, Wiswall Station, Wis. — Bark-
hausen Coal & Dock Company, Green Bay, Wis... 3, 000
Tuberculosis Sanitarium, Wales, Wis. — Milwaukee
Western Fuel Company, Milwaukee . 2, .500
Hospital for the Criminal Insane, Waupun, Wis. —
Callaway Fuel Company, Milwaukee, Wis . 1,000
.Symbi
A.
B.
C.
1).
F.
F.
II.
1.
J.
K.
L.
M.
N.
O.
P.
U-
LIST OF COAL CONTRACTORS
STATE BOARD OF CONTROL
1915-1916
il. Contractor. Address.
Wasson Coal Company .... 37 W. VanBuren Street
Chicago
Purity Coal Company... 72 W. Adams St., Chicago
Great Lakes Coal S: Dock Company .
. 1034 Security Bldg., Minneapolis, Minn
F. Hurlbut Company . Green Bay, Wis.
D. F. Cooley . '..Madison, Wis.
Tliomson & Burton Company . ._
. 625 Home Insurance Bldg., Chicago
Sunnyside Coal Company .
. 1309 Fisher Bldg., Chicap
S. H. Benjamin Cpal Company. . .Milwaukee, Wis.
Callaway Fuel Company . Milwaukee, Wis.
Taylor Coal Company.. Old Colony Bldg., Chicago
C. Reiss Coal Company . Sheboygan, Wis.
Northern Coal Company . Edison Bldg., Chicago
Pittsburgh Coal Company .
. Plymouth Bldg., Minneapolis, Minn.
Barkhausen (joal Company . Green Bay, Wis.
Pennsylvania Coal & Supply Company .
. Milwaukee, Wis.
Marlin Ilowe Coal Company . . ........
. 1907 McCormick Bldg., Chicago
Milwaukee Western Fuel Company. .Milwaukee, Wis.
No. 1]
THE BLACK DIAMOND
9
Men Prominent in the Coal Trade’s Eye.
Holly Stover.
Holly Stover, the western representative of
the Flat Top Fuel Company, with headquartep
in the Lytton building, Chicago, was again
brought to the attention of the western coal
trade this week
by an announce¬
ment which read
as follows:
“Mr. James
Henry Clark an¬
nounces the mar-
riage of his
daughter, Grace
Mae, to Mr. Holly
Stover, on Satur¬
day the twenty-
sixth of June,
nineteen hundred
and fifteen, in the
city of Chicago.”
An accompany-
i n g card a n-
nounces that the
bride and groom
are at home at
5812 Magnolia
avenue, Chicago.
In business Mr.
Stover is one of
the most interesting selling representatives
of the Pocahontas district. He was born on
a farm in Raleigh county, W. Va., March 12,
1883. This, being interpreted, means that he
is now thirty-two years of age. He started
to work in the mine at the age of twelve as
a trapper boy. While he was occupying that
position and some other positions around the
mine he studied telegraphy at night. For
several years thereafter he served as tele¬
graph operator, as agent and general utility
man around the stations of the Chesapeake
& Ohio and Norfolk & Western railways.
Eight years ago he quit the railway busi¬
ness and began to sell coal out of Richmond,
Va., for the White Oak Coal Company. He
remained there for two years, when he was
transferred to the Chicago office of that com¬
pany, where he continued for a year.
Five years ago Mr. Stover opened the west¬
ern office of the Flat Top Fuel Company,
which he has since been largely instrumental
in making well known in the Chicago and all¬
rail territory in the west and also in the upper
lake trade.
E. F. Burchard.
E. F. Burchard has been selected as geologist
in charge of the non-metals section of the Divi¬
sion of Mineral Resources of the United States
Geological Survey, effective July 1.
He has specialized on the economic geology of
the Appalachian iron ores and the cement, stone,
lime and other structural materials of the United
States, but has also studied the lignites of Ne¬
braska, the lead and zinc ores of Arkansas and
Wisconsin, and various other economic fields. As
the author of the Mineral Resources reports on
iron ore, pig iron and steel, and on cement, build¬
ing stone, fluorspar and cryolite, he has become
an authority on these subjects.
Ronald L. Paterson.
Omaha, Neb., July 1. — (Special Correspond¬
ence.) — There is a general opinion that the young
man of today does not have the opportunities of
R. L. Paterson.
climbing to the top that the young man of a gen¬
eration or two ago did. And yet the oldest coal
firm in Omaha is entirely in the hands of youag
men, no one of whom is over thirty years of
age. With George M. Wallace as the new sales
G. M. Wallace.
E. F. Burchard.
Mr. Burchard’s scientific training at Lehigh
and Northwestern Universities has been supple¬
mented by work on the Wisconsin State Survey
in 1903 and on the Federal Survey since 1904.
manager and secretary of the Nebraska Fuel
Company, it becomes strictly a young men’s or¬
ganization.
George Paterson came to Omaha forty-eight
years ago. He had been in the business here be¬
fore this company was organized. Ronald L.
Paterson, president of the company today, and
Kenneth H. Paterson, vice-president and treas¬
urer, are his sons. They have grown up in this
business, and so are thoroughly familiar with its
details.
Twice in the last few years the company has
been burned out, but its business has only been
delayed an hour or two each time. In 1910 the
company erected at Sixteenth and Pierce streets
one of the finest mechanically operated coal plants
in this section of the country. It had a capacity
of 8,000 tons of coal. At 5 :15 on the morning of
October 2, 1912, the entire plant was destroyed
by fire. At 8 a. m. the company was doing busi¬
ness as usual, coal being unloaded from cars at
other yards.
The company was reorganized in 1912, the
Towles drawing out. The same year, following
the burning of the plant, the central yard of the
Havens-White Company, at the north end of the
Sixteenth street viaduct, was purchased, the
Havens-White Company going out of business at
that time.
Mr. Wallace, who just joined the company, has
had experience in both the retail and wholesale
coal business. He will pay particular attention
to the wholesale field. Ronald Paterson is a prom¬
inent member of the Commercial Club, and won
the last contest of that club for new members,
bringing in thirty of them. He is also a member
of the University Club. Kenneth Paterson is a
prominent young club man, and owin.g to his
marriage to Miss Elizabeth Pickens, recently, is
now on his wedding trip.
Peoria Convention Notes.
One of the most novel displays at the Peoria
convention was the Buchanan Coal Company’s
“Auto-Projectoscope,” in which colored slides
showing views in and around the mines were
displayed. This machine attracted considerable
attention and was in charge of Dr. J. E. Beebe,
director of publicity and trade extension for the
company.
Robert L. Green, manager of sales for the John
A. Logan Coal Company, mingled with the
crowds, meeting old friends and making new
ones.
The Purity Coal Company engaged an attract¬
ive young lady to pin perfumed buttonhole
bouquets to the lapels of the conventionites. It
was a Calla lily, which is the company’s well
known trade mark.
Secretary I. L. Runyan was one of the busiest
of men during the entire convention period. It
was his duty to see that everyone enjoyed him
and herself and his duty was nobly performed.
The following companies maintained head¬
quarters at the convention : Big Creek Colliery
Company, Buchanan Coal Company, Purity Coal
Company, Peabody Coal Company, David Rutter
& Co., where they entertained their friends dur¬
ing the recess.
The Peabody Coal Company distributed a use¬
ful souvenir in the shape of a burnished copper
combination ash receiver and match safe.
Pickands, Brown & Co. gave away teamsters’
pencils as souvenirs. Thev were eagerly sought
after.
.
I'.Wff/IS
rnsritL
w arf
mmDCf
TO
Kunrii .
Peoria Coal Club Monument.
10
THE BLACK DIAMOND.
[July 3
pubi.ishi:d bvebt satubdat by thb
BI.ACX DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, July 3, 1915.
INDEX.
Special Articles.
Page
Needed Aids for Trucks — Facilities to Save Time . 1
Making Tests to Learn Coal Value . 3
The Aftermath of the M-O-I Convention . 4
New Coal Mine Companies . 4
Field of the Retail Dealer . 5
Judge Kunkel’s Decisions on Anthracite Tax . 6
Sunday Creek Company Closes Some Mines . 8
Bids for and Contracts Let On Coal . S
Men Prominent in the Coal Trade’s Eye . 9
Peoria Convention Notes . 9
Editorial . 10
News Local to Chicago . 12
National Coal Convention . 12
War Risk Insurance . 12
Facts Which Determine Our Export Prices . 13
Market Reports.
General Review and Chicago . 14
Pittsburgh and Toledo . 15
Cincinnati, Denver and Indianapolis . 16
Detroit, Twin Cities and Birmingham . 17
New York . 18
Philadelphia and Buffalo . 19
New England and Baltimore . 20
Hocking Valley . 15
Retail Convention.
Jhe retail coal convention season is at
an end for this year. At such a time
there is a disposition among leaders of
the coal trade to regret that the conven¬
tions have not been as successful as they
might have been. A quite common com¬
plaint is that the attendance was not
large, and that the attention given the
jiapers was discouraging. There is oc¬
casionally a disposition to say: “Let’s
cut out this high brow stuff in future and
])ut on a vaudeville performance and a
jiicture show.”
We are reminded here of a saying in
Holy Writ to this effect: “Be not weary
of well doing, for in due season you will
reap if you faint not.” We are not dis¬
couraged if all of the retail coal dealers
do not accept at face value the sober
things we say about coal. We are not
discouraged if the whole procession does
not take it up instantly, with a big idea.
We are far from discouraged if an ad¬
vanced idea is not accepted by the rear
guard of the procession.
On the contrary, we are inclined to
consider all men in business as making
up rather a long jiarade. Usually the
marchers are in fairly close order. There
are always those who march at the head
of the procession and just behind the
Tand. There are others who make up the
middle distance. There are others who
bring up the rear. We have always found
it true that those who remain in the pro¬
cession at all occupy a certain relation to
each other. The further ahead the lead¬
ers march, the further ahead the rear
guard gets.
The point of it all, of course, is: If you
can get the vanguard to advance, the
rear guard is going to advance, merely
as a matter of following the leaders. So
the serious thought is always addressed
to those who are in the lead, with the
assurance that those who bring up the
rear will catch the step after a while.
That is a point of view which association
workers can find a great deal of comfort
in adopting. If they can get the leaders
to advance the other fellows are going
to do so merely as a matter of self-pres¬
ervation, or of keeping in the ranks at all.
So we are not discouraged if the whole
body of the convention does not take
kindly or avidly to some of the sober
things said by speakers. If they chal¬
lenge the attention of the best men, it
is almost sure to inoculate the entire
trade, because others will get it ulti¬
mately by merely following the leader.
A coal wholesaler recently gave this ad¬
vice to a friend: “If you want to get a
good coal go to so-and-so. He is the big¬
gest crank in America. I would rather
try to swim Lake Michigan than to try to
sell him an assortment of cats and dogs.
He knows what he wants and he yells like a
fiend unless he gets it. A man who adopts
that attitude toward us is a safe man for
any householder to buy from.” This is not
intended as advise to retailers to become
kickers. Rather it hints at this. “You can’t
he easy on the wholesaler without being
hard on your customer.”
The Matter of Weight.
There are a few words in our language
which mean one thing and only one.
These few words can not be improved by
and additions. They have no positive,
comparative and superlative degrees.
For example, there is the word “truth.”
If anything is true, that ends it. There
can be no such thing as “truer” or
“truest.” If a thing is perfect, there is
no such thing as it being “more perfect”
or “most perfect.” A thing is either true
or it is not ; it is either perfect or it is
not. That is, as the purists in English
would say, such words are absolute.
The word “weight” belongs in the same
category. If you have the weight of
anything, it is something which cannot
be disputed. That is, there is and can be
no such thing on a carload of coal as the
“correct weight” or the “exact weight”
— implying that you can have an incor¬
rect and an inexact weight. If you have
the weight, you have a statement of
what the contents of the car weighs. You
cither have it or you don’t. It is either
the correct weight or you only have a
guess as to what the weight is. Nobody
will say that a weight obtained on an
inaccurate scale or that a statement of
weight made by a person who is not
competent is the weight of anything; it
would simply be an inaccurate statement
about the weight. An incorrect state¬
ment is nothing at all. It is a lie about
the truth.
Nevertheless, the railroads insist that
it is possible to temporize on the ques¬
tion of weights. They plead that the
scales are inaccurate. They are willing
to base their carrying charges upon the
weights recorded by scales. Yet when
a claim is presented they hide behind the
hackneyed excuse that the scales are un¬
reliable or that the weighmaster is in¬
competent.
We insist that a weight which is ac¬
cepted as the basis for freight charges
must be the weight used for the estab¬
lishment of a claim.
Also, if the inaccuracy of scales at
point of origin is waived, the inaccuracy
of scales at destination must also be
waived.
If the railroads want to evade this
proposition, they must test the scales and
repair them if found out of order.
Western sales agents of smokeless coal
are puzzled. They know that cars are
going to be short and hence that coal of
that grade will be scarce. Yet, they can¬
not get the retailer to buy it. The retailer
says the ultimate consumer is not buying.
The ultimate consumer pleads poverty.
The curious fact is: The ultimate con¬
sumer, mainly, is the apartment house
owner. The same number of apartments
are rented now as were rented when times
were better. The real estate agent is col¬
lecting the rent regularly. Therefore, the
apartment house owner has money. Un¬
der the circumstances, the sales agent for
smokeless coal cannot harmonize the facts
with the excuses.
The Average Is Safest.
One of the best signs of the times is
that coal men are beginning to inquire :
What is the average cost of producing
coal in our district? They rely less upon
their own costs as a criterion by which to
determine their prices.
For two reasons the average cost is best.
The first is that in every producing field
there are thick veins and thin veins; those
with a good roof and those with a bad
roof. There are those with new and those
with old mines. There is a need for prac¬
tically all of the mines. Therefore, there
is need for all of the various kinds of
mines. To take the cost of the most fav¬
ored mine as the cost for the entire field
is to make the business hopelessly un¬
profitable for the other people. To take,
however, the cost of the worst mine as the
criterion for the field is to make the cost
of production so high that the whole dis¬
trict will be driven out of business by some
other district. An average of the best and
the worst conditions will bring the cost
of production to where one district can
compete with another and still where the
average of the field will give a profit to
the average of the operators.
The second thing in favor of the aver¬
age, instead of either the top or bottom
cost is that it inculcates a community
spirit among the operators. It gets rid
of the notion that each man is a business
or an institution unto himself. No man
was ever so good at anything but that
somebody proved to be better. The oper¬
ator who tries to win on the belief that
only the fittest survive perishes in the end
as a victim of his own doctrine. He may
win for a time but somebody will beat
him after a while. It is a safer policy,
therefore, to “live and let live.”
On these two accounts, the average cost
of a district is the proper one as a basis
for the prices. Any system of accounting
adopted by any district which does not
proceed upon this theory is unsafe.
No. 1]
THE BLACK DIAMOND.
II
Establishing a Name.
There is a picturesque practice in the
west which is called cutting a steer out
of the herd. There is, of course, a great
herd of cattle, containing some fine, some
good, some indift'erent, and some bad.
The owner of the herd, of course, puts
his brand upon the best first. To do it
lie must first maneuver to get the steer
that is to be branded out of the herd.
'Fhis is accompanied by a good deal of
noise, dust and confusion.
VVe have a replica of this performance
in the coal trade frequently. There is a
host of coal companies. There is a large
and varied assortment of coals. In that
host of companies there are some fine,
some good, some indifferent and, unfor¬
tunately, some bad ones. The same can
be said of coals. The purpose is to cut
the fine and the good out from the herd
and put a brand upon them. This usually
is accompanied by a somewhat noisy
ceremony. This ceremony in business is
called advertising.
The purpose, then, of advertising is to
put some one’s brand upon the company
or the grade of coal. It is to distinguish
one product or one service from the mass.
It is, in a word, to establish a name.
Therefore, the first purpose of advertis¬
ing is to establish a name.
Essentially the establishing of a name
carries with it the suggestion of quality
or fitness. It is impossible to establish
a quality or fitness without having a
name to which it can cling. We can
make a name synonymous with quality
but we cannot reverse the process and
suggest a ' name by talking first about
quality. Therefore the first aim in ad¬
vertising is to establish a name. If you
will take the trouble to look at the con¬
spicuous successes in business today you
will appreciate that the establishment of
the name came first and the recognition
of quality came later.
One outspoken retail coal dealer told the
whole truth when he said that most of the
troubles of the eastern coal trade begin and
end with the fact that the government has
taught the people to dislike the anthracite
industry and this displeasure has been trans¬
ferred to every one in the business. That
is, the nation is trying to convict the an¬
thracite operators of a fancied offense
against the law. They are peevish because
they have not succeeded. Now in a spirit
of reprisal, politicians are heckling the
whole coal business through a series of laws
such as the anthracite tax. This does not
speak well for the moral status of our poli¬
ticians, but such seem to be the facts.
About Fountain Pens.
Arthur Brisbane, the editorial writer for
the Hcarst publications, devoted a couple
of columns recently to the abuse of foun¬
tain pens in general. Since he is one of
America’s greatest writers, we have emin¬
ent authority for taking the fountain pen
as a text.
We have had some difficulty with j)cns.
Our opinion — pardon the assumption Mr.
Brisbane — is that the difficulty is not in
the pen but in the way it is used and the
man who uses it.
A fountain pen consists of a container
for the ink; a passageway — usually quite
small — through which the ink flows, and
a point. The crux of the instrument is
the passageway. If it is not kept clean or
if one tries to force bad ink through it,
trouble results. Most of the trouble comes
from using an ink which cannot flow
through a passageway which must be
small.
I'he coal trade has a similar difficulty.
Coal men have many interesting and im-
jxjrtant tilings to say to the American
people. But to say them, we think we
must go back to the beginning of time and
tell the whole story. To say one or two
things, we must open the whole subject.
We want to tell so much that we clog the
avenue of communication. We use a
quality of ink too thick to flow through
the small passageway leading to the point.
Current periodicals — newspapers and
magazines — are the passageway. They
are small compartively. They can say but
little and try, in short space, to tell some¬
thing which thrills and informs. Whether
it informs or not, it must thrill.
Because the space is limited and be¬
cause the people will not read anything
else, the periodicals devote themselves to
a single and small phase of a subject.
There are enough of these small things to
congest permanently the small space at
the disposal of publications.
The coal man wants to and feels that
he must say certain things. Yet, the pas¬
sageway can acommodate neither the
quality nor the quantity of what he has in
mind. How, under the circumstances, is
the coal trade message to be carried to
the people?
The only practical suggestion is that
the coal man permit the statement of his
case to be made in a way that the public
will take it. We are wondering if the
time will ever come when the coal trade
will invite the “yellow journalist” to help
him state his case.
There is a comforting way of looking at
the sale of munitions of war by United
States factories to European belligerents.
We are training our own people to produce
war materials which we may need some
day and we are creating facilities such as
England and Russia today would give mil¬
lions for. Under the circumstances, the
Government should prohibit the sale of
those factories to Germany or any other
foreign power.
A Diseased Nation.
To say that America is a diseased na¬
tion and that its malady is epidemic is
astounding and yet it is true.
The best definition of “disease” is that
used commonly by the Christian Scien¬
tists. They make a compound word of
it — “dis-ease.” They say, therefore, it is
nothing more than the absence of ease.
We were visited recently by a gentle¬
man who confessed that he was obsessed
with a desire to discuss only a few sub¬
jects. We concluded after a while that
he wanted to discuss two or three phases
of one subject. His theme was the right
of capital to a certain remuneration. His
time was given up to devising arguments
in favor of his propaganda. He could
think of nothing else; he preferred to talk
of nothing else. Naturally he was fighting
the ideas of those who want to crush capi¬
tal. He got into a stew every few hours
and this constant upsetting in the end in-
terferred with his appetite, with his sleep
and with his health. From a state of men¬
tal dis-ease, he passed to a state of phy¬
sical disease. The man was sick because
he had let some ideas about what be¬
longed to others overcome him.
This man presents a striking example
of the prevalent American tendency. We
are having more labor trouble than at any
time in history. At the same time, the
workers were never better paid, better fed
nor better housed than now. Yet, nearly
a majority of the American workers is in
a state of dis-ease. The trouble is not
that the man himself feels agrieved or
wronged, but that his mentality has been
imposed upon by his leaders who are
thinking — or trying to think — in terms of
labor in the mass. These leaders are ob¬
sessed with an idea that labor is all there
is, and, therefore, that labor should dom¬
inate all and absorb all. We have as a
consequence a case of dis-ease through¬
out the labor world. There is a resultant
lowering of physical capacity because dis¬
ease in the mind is setting up disease in
the body.
Precisely the same thing is true of our
publicists and literati. Men like Roose¬
velt, Steffens, Baker, Berger and Hearst,
and women like Jane Addams and Ida M.
Tarbell are plainly suffering from mental
dis-ease. They have done more to inocu¬
late the world with their uneasy germ
than could a regiment of men turned loose
with the cholera or bubonic plague. This
is so because their malady is infectious
rather than contagious and because the
jjrinting press is their agent rather than
the air or the touch. They poison by
machinery.
As a consequence of futile discussion of
these disturbing topics, America is becom¬
ing the most diseased nation of all time.
There is no such thing left as ease in our
society. There is no such thing any more
as a reasonable degree even of content¬
ment. We have lost the passion for do¬
ing things for the mere love of doing them
well. On the contrary we have aban¬
doned everything except the spoils sys¬
tem. America is quarreling over the di¬
vision of profit before there is any foun¬
dation under the profit itself.
Our situation is rather serious but it
need not prove fatal. The cure will come
if we all will relax a little and learn to
take our problems and our perplexities
a little less seriously.
The weather is the coal man’s stock in
trade. The astronomers and the astrologers
say that for a year or two the weather will
be abnormal. Thus the coal man’s calcu¬
lations are likely to be away off. Tbe as¬
tronomers say that the stars are coming
to occupy a new relation to each other.
The astrologers say that the stars influ¬
ence the weather and hence influence men.
In the next year or two, the influence of
one star on the earth and the sun will be
disappearing and that of a new one will
be appearing. This is likely to unsettle
the weather. The Seventh Day Adventists
at this point come to the relief of the coal
men by saying that this change forecasts
the second coming of Christ and hence the
end of the world. So the weather may
change, but we will all be out of the coal
business. Therefore, cheer up.
12
[July 3
THE BLA( K DIAMOND.
News Local to Chicago.
Holly Stover, who was married last Satur¬
day nisht, expects to take a trip through West
Virginia in a few days.
Will, (h Eldridge has joined the Matthew Addy
Company in the Rookery liuilding as sales man¬
ager for their coal department.
F. C. Scott of the Scott Coal Company of
Springfield, was one of the callers on the
Chicago trade on Wednesday of the week.
L. O. Stanton, general sales agent of the
Clinton Coal Company moved his family from
his home at Oak Park to his summer resi¬
dence at Delavan Lake the latter part of June,
and will spend the Fourth of July holidays at
that resort. He expects also to spend his
vacation there.
One of the coke producers of the western
territory is now ready to put out an interest¬
ing moving picture advertisement. The mov¬
ing picture is a close-in view of the head
of the selling organization writing a descrip¬
tion of what coke will do in the furnace and
how to use it. The moving picture is really
that of a man’s hand penning the words which
appear on the sheet.
W. J. Dillon of the Mitchell & Dillon Coal
Company, moved his family to the farm at
Liberty ville, on the first of July, and will
spend the remainder of the summer as a
commuter. He will share the lot of the other
communtation coal men in that he will fight
competition in the day time and mosquitoes m
the evening, and spend the rest of the time
rushing to and from or riding upon trains.
W. C. Hill, vice-president of the Chicago
& Carterville Coal Company, put out a new
circular on June 25, announcing that effective
July tst prices on Hickory Hill coal are; Do¬
mestic lump, egg and No. 1 washed, $1.50; No.
2 washed nut and No. 1 dry screened nut
$1.40; mine run, $1.15. He announces also
that the dry screened nut quoted is a new
product, produced by his mines, the size be¬
ing 3x2 inches.
Most of the Franklin county operators this
week announced a new circular price, effec¬
tive July 1st, which makes the price on do¬
mestic lump, egg and No. 1 nut $1.50 and on
No. 2 or special stove $1.40. This announce¬
ment did not come as any surprise to the
trade since an advance notice of the possi¬
ble intention in that direction had served to
warn a good many of the buyers who had
partially covered their needs by orders in
June.
One of the interesting announcements of
the week was that for some time a number of
the mines of the Sunday Creek Company in
the Hocking district of Ohio, will be
closed down. It seems that the mines of this
company are divided into two groups, one be¬
ing on the Hocking Valley railway and the
other on the Toledo & Ohio Central railway.
The present intention, so it is understood,
is to close the mines on the Hocking Valley
until the market recovers. This will permit
the concentration of the management on the
mining on the Toledo & Ohio Central, which
are grouped so that they can most easily be
operated by one set of officials and miners.
H. C. Adams of the Jones & Adams Coal
Company, is, after an experience last Sunday,
quite an enthusiast on the south side as a
place to live. He says that he went out to
Kenilworth last Sunday to visit some friends
of his, and ran into the north shore brand of
mosquitoes, which he is willing to take oath
are as, big and as vicious as bumble bees. He
said that the one way to combat those mos¬
quitoes was to use a tennis racket. The ex¬
perience of Lynn Rutter, Gordon Buchanan,
John Pynchon and a few other north shore
men will probably bear out the statement of
Mr. Adams on this interesting point. The
only consolation which north shore residents
have is the fighting mosquitoes is good ex¬
ercise.
The announcement is made this week by the
Eldridge Coal Company that, effective July
1st the Consumers Company acquired its
entire retail business and will complete the
deliveries of all coal on contract held by
that concern. However, all outstanding ac¬
counts due the company are payable at its
general offices. The yards of the Eldridge
Coal Company transferred by this arrange¬
ment are as follows; On the north side at
Bryn Mawr avenue and the Chicago & North¬
western Railway; at Elston avenue near ' Di¬
vision street. On the south side at Forty-
seventh and Federal streets; at the foot of
South Water street and Illinois Central Rail¬
way; and at Sixty-ninth street and St. Law¬
rence avenue. On the west side at Ogden
avenue and Kedvale avenue, and at Elston
avenue near Racine avenue. This company
had been in Chicago for twenty-five years un¬
der the same management as that which has
just sold the properties. The announceme:i4
is made that Harold Eldridge has not made plans
for the future, and is not sure yet what his line
of activity will be. This transfer of one of the
older retail properties of Chicago to the Consum¬
ers Company was a matter of considerable inter¬
est to members of the Chicago trade.
James F. Callbreath, secretary of the Amer¬
ican Mining Congress, spent last Friday and
Saturday' in Chicago on his way to Denver and
San Francisco, where he is making arrange¬
ments for the coming convention of his con¬
gress. He has some mighty interesting plans
in contemplation, one of which is the organiza¬
tion of a bureau of information, or bureau
of statistics, which will compile and distribute
necessary data about all the phases of min¬
ing. It is quite a pretentious plan. While Mr.
Callbreath was here an interesting fact was
developed in connection with his career when
he began to tell how on one occasion he
learned the poetic possibilities of profanity. It
seems in his earlier days he was an expert
on raising bees. His father, who was a scien¬
tific apiarist, made a miscalculation on build
ing his hive, with the result that one hive
of bees was not satisfied with the new home
and left to find other quarters. They were
finally housed about a mile away from home
in the woods. There they set up housekeep¬
ing, and began to make honey in that terri¬
tory. In those days there was a bee hunter who
would take observations on the homeward
flight of the bees from two different points
and having made calculations of angles and
distances, arrive at an idea about where the
home of the wild bees could be found. He
would then cut down the tree, smoke out the
bees and take the honey. This was usually
the work of a day or so. This wild bee
hunter had discovered what he thought was
the home of quite a lot of wild bees and after
painful calculations traced them to their hive,
only to find that they were domestic bees
after all, owned by Mr. Callbreath. What he
had to say on the subject gave Mr. Callbreath
the idea of the use to which profanity on cer¬
tain occasions could be put.
National Coal Convention.
■A. general and most cordial invitation is ex¬
tended to everyone connected with the coal trade
to make a special effort to be present at the na¬
tional coal convention and tenth anniversary of
the Order Kokoal at the Auditorium Hotel, Chi¬
cago, Ill., on Monday and Tuesday, July 12
and 13.
An unusually interesting and instructive pro¬
gram has been prepared and as it is a general
open meeting for all coalmen, regardless of
whether they are members of the Order Kokoal
it is earnestly hoped that there will be a large
attendance.
It is planned to make this national coal con¬
vention educational in character and the theme
of the meeting is to be the cost of producing,
shipping and selling coal with the thought that a
wider and more accurate knowledge of this sub¬
ject by all concerned will do much towards con¬
vincing operators, wholesalers, and retailers of
the necessity of getting a sufficient price for their
coals as will insure a reasonable profit.
It is also believed that a campaign of education
alont! this line can be made helpful in lessening
unjust criticism of the coal trade bv the public
as well as to persuade them that the large con¬
sumers of coal, who are business men themselves,
should be willing to pay a living price for their
coal supply.
With these praiseworthy objects in vie v the
national coal convention in Chicago, on July 12
promises to be unusually timely and important
and especially as it is proposed radically to
change the policy under which Kokoal has oper¬
ated during the last ten years, eliminate the
horseplay and unnecessary frivolity and make it
a purposeful national coal association, combin¬
ing social, fraternal and educational features in
a manner that will enable it to co-operate in a
thoroughly practical way with the various retail,
wholesale and operators’ associations and local
coal exchanges throughout the country, without
any detail conflicting with the work or fields
which they now cover.
A leading feature of this meeting will be an
interesting and instructive lecture on the mining
preparation and distribution of anthracite, given
under the ausnices of the United States Govern¬
ment by H. 1. Smith, engineer of the United
States Bureau of Mines.
The convention is to be held at the Auditorium
Hotel, Chicago, and the first session will begin
promptly at 2 p. m. Monday afternoon, July 12.
The complete program for the two days’ ses¬
sion is as follows ;
MONDAY AFTERNOON, JULY 12—2 P. M. SHARP.
Call to Order.
Address of Welcome, by Chas. L. Dering, manager S. C.
Schenck Co. and president Chicago Association of Com¬
merce.
Welcome to the Retailers, hy Wm. D. Elmstrom, president
Chicago Coal Merchants’ Association.
Response and .\nnouncement of New Educational Policy,
hy Chas. K. Scull, Imperial Modoc, Order Kokoal,
Philadelphia.
Tcn-Mimite Addresses. '
“Importance of I'iguring Costs Accurately.” by A. I.
Moorshead. St. Louis, Mo., ex-president Illinois Coal
Operators’ Associaation.
Year’s Experience Retailing Coal for Cash,” hy G. T.
Rider, manager Scanlon Coal Company, Louisville, Ky.
“Will Knowledge of Costs Reduce Price-Cutting,” by T.
P, Rryan, Gray-Bryan Sweeney Coal Company, Kan¬
sas City, Mo.
Illustrated Motion Picture Lecture under direction of
United States Government — The Mining, Preparation
and Distribution of Anthracite Coal, by H. I. Smith,
Bureau of Mines.
Appointment of Committees
Announcements.
Recess.
MONDAY EVENING, JULY 12—6:30 P. M.
National Coal Banquet at Auditorium Hotel, Chicago.
“Have Selling Prices Kept Up With Rising Costs,” by
Walter S. Bogle, The Dean of Chicago Coalmen.
“Ilniform .System of Accounting and Costs,” by Homer D.
Jones, Western Fuel Company, Chicago.
“The Coal Trade’s Need of National Co-operation,” hy
Chas. K. Kerchner, Hall Bros. & Co., Baltimore, Md.
“How to .Strengthen Local Conditions,” by H. C. Mc¬
Kinney, Kansas City, Mo.
“The Advantage of a Definite Aim,” by C. M. Moderwell,
Chicago, Ill., president Illinois Coal Operators’ Asso¬
ciation.
TUESn.\Y MORNING, JULY 13—10 A. M. SHARP.
“Odd Leaks That Decrease Profits,” by B. L. Shepard,
of -Shepard & Chandler,^ Chicago.
“Jobbers’ Cost of Selling Coal,” by W. J. Dillon, Mitchell
’ & Dillon Coal Company, Chicago.
“\Vhat Can Be Accomplished by Coal Publicity,” by Arch
Coleman, president City Fuel Company, Minneapolis,
Minn.
General Discussion for the Good of the Coal Trade.
Recess for Luncheon.
2 P. M. SHARP.
Annual Address, Imperial Modoc, Chas. K. Scull, Phila¬
delphia, Pa.
.'nnual Report, Imperial Pictor, Ed. F. Smith, Chicago.
Reports of Committees.
Election of Officers.
Unfinished Business.
Adjournment.
War Risk Insurance.
Washington, D. C., June 24. — Owing to the
exceptional hazards involved, the Bureau of War
Risk Insurance will consider these ports only
when application is made to the Bureau of War
Risk Insurance, Washington, D. C. The bureau
reserves to itself the right to decline any risks
to these ports, or if accepted, to name such rates
as may seem, in its judgment, adequate. This list
is effective from the date hereof, but subject to
change without notice. At this date it is as fol¬
lows ;
All United Kingdom ports.
All ports on the continent of Europe other than
Spanish or Portuguese '^orts.
All ports of Asia Minor.
All African ports in the Mediterranean sea.
All colonial possessions of Germany and Tur¬
key.
The ports above mentioned comprise the pres¬
ent special list of ports referred to in the vessel
form of policy, to which vessels may not clear
and proceed without special permission of the
bureau.
Applications for insurance to the above-men¬
tioned ports must contain full particulars of the
proposed voyage, including name of consignee
and description of cargo as well as the amount
of insurance.
The latest lists issued may be obtained from the
Bureau of War Risk Insurance.
[The above sunnlements the announcements
that were published in Commerce Reports for
Feb. 24 and 27 and March 13, 1915.]
Charters for the week included twelve
steamships for Italian ports; five for the River
Plate; two for Spain; one for Sweden, and
one for Chili.
No. 1]
THE BLACK DIAMOND
13
Facts Which Determine Our Export Prospects.
The Export Situation.
While at- the moment the exact figures of
exports of bituminous coal over the Atlantic
seaboard for the month of June are not avail¬
able, sufficient information is at hand to show
that the total will show that June made a
record for exports from this country over
the Atlantic seaboard. Baltimore will show
a total of exports for the month well above
300,000 tons, a record-breaking performance,
while Hampton Roads shipments have been
running well between 100,000 and 200,000 tons
per week and are expected to show very
closely around 600,000 tons for the month,
while Philadelphia is expected to show heavy
exportations, though not quite reaching her
record of 107,654 tons for May.
Up to June 26 Hampton Roads had ex¬
ported 547,685 tons, Baltimore 287,015 tons,
while Philadelphia up to the 23rd had shipped
86,310 tons, a total of 921,000 tons. This
would indicate a total for June of around
1,100,000 tons, or an increase of 300,000 tons
over May, when the total exports from all
these ports was 778,000 tons.
Italy continues to receive heavier tonnages
than those going to any other foreign coun¬
tries, with Brazil and Argentine following
closely in order. During the past several
weeks, shipments have begun to be made to
France, Holland and Sweden, Norway and
Spain, and commitment to these countries
indicate that a large tonnage will be going
forward for these destinations for the next
several months. Holland is believed to be
a purchaser of approximately 100,000 tons
of coal, most of it to be used for bunkering
steamships that ply from Rotterdam to other
than American ports. Spain, which is tak¬
ing considerable American coal and exporters
believe that her requirements will grow from
month to month. Scattered here and there
are orders for individual cargoes, all of which
help to make the aggregate exports large.
This week the Central Brazil Railways re¬
ceived bids for 100,000 tons of coal to be
divided equally between British and American
coal. Bids were asked c. i. f., and few of
the American shippers care to tender bids
under this basis. However, it is expected
that there will be quite a number of bidders,
though it is quite a problem now to name a
c. i. f. price.
Coal is very scarce with the leading ex¬
porters through Hampton Roads. Some of
the big exporting companies have considerable
more tonnage and vessels in sight than they
have coal available, and this means scouring
for coal amnog other more favored shippers
so as not to cause delay in dispatching ves¬
sels.
Tidewater prices, ^2.85 on New River and
Pocahontas coals, are being well maintained,
and prices are just as firm for George’s Creek
for loading at Baltimore, while prices are
easy on the favored grades of Pennsylvania
and Fairmont gas coals that are now going
into export.
April Coal Exports.
The Dei)artment of Commerce and Labor give
exports of coal for April, 1915, and ten months,
with comparisons, as follows:
-April-
^ - 1914 -
Destination.
Anthracite —
t anada .
-Argentina .
Brazil .
- 1914-
Tons. Value.
..192,822 I-Ool-IST
-191. I - ^
Tons. Value.
Foreign Freight Rates.
W. VV. Battle & Company, Produce Ex¬
change, New York, report as follows under
date of June 28:
We chartered a number of steamers during
the past week for coal to Spanish and Italian
ports, and have numerous other boats offered
for this business, at lower rates than those
recently quoted.
To the Plate steamers offer sparingly, and
a steamer of about 7,000 tons coal capacity
was chartered, Virginia to Buenos Aires, at
36s, option Port Militar at 37s 6d, but we
consider these rates a little above the market
as we chartered steamers for similar business
at lower rates.
Freight rates to other destinations are un¬
changed.
We would quote freight rates on coal by
steamer as follows;
West coast of Italy, about . 39s.
Marseilles, about . 37s.
Barcelona, about . 36s.
(Spanish dues for account of cargo.)
Montevideo, about . 35s.
Buenos Aires or La Plata, about . 35s. 6d.
Rosario, about . 38s.
Rio, about . 36s.
Santos, about . 37s.
(Consignees paying docas dues.)
Valparaiso or Callao . $6.75@7.00
Havana . ’. . 2.00@2.25
Cardenas or Sagua, about . 2.75
Cienfuegos . 2.75@3.00
Port of Spain, Trinidad . 3.50@3.75
St. Lucia, about . 3.50
St. Thomas . 3.00@3.25
Barbados . 3.50@3.75
Kingston . 2.75@3.0n
Curacao, about . (and p. c.) 3.50
Santiago . 2.50@3.00
Guantanamo . .’ . 2.50@3.00
Demerara, about . 4.25
Bermuda, about . 3.00
Vera Cruz . 3.50@3.75
Tampico . 3.50@3.75
U. S. Coal Imports.
The Department of Commerce and Labor show
imports of coal into the United States for April,
1914 and 1915, and ten months comparisons, as
follows :
APRir,
Imported from —
(ioal, bituminous —
United Kingdom .
Japan .
Australia and Ta
Other countries.
TEN MONTHS ENDING
1913
Tons.
United Kingdom . 8,550
Canada . 1,181,216
Japan . 66,497
Australia and Tasmania. . 129,985
Other countries . 3,257
1914
Tons.
442
136,486
233
29,020
1915
Tons,
3,012
116,632
4,729
13,027
321
166,181
137,721
APRIL
1914
1915
Tons.
Tons.
10,133
32,902
882,772
959,072
83,441
72,980
226,945
154,907
3,430
1,828
Total . 1,389,505 1,206,721 1,221,749
Recent Coal Freight Charters.
Steamer Ferndene (Br.), Atlantic Range to west coast
of Italy, coal, 41s., July.
Steamer Chumleigh (Br.), Atlantic Range to Barcelona,
coal, 37s., June.
Steamer Oreland (Br.), Philadelphia to Rio Janeiro,
coal, p. t.
Steamer Anglesea (Br.), Virginia to Buenos Aires,
coal, 36s., option of Port Milton, 37s. 6d., July.
Steamers - - , Atlantic Range to west coast of Italy,
coal, 405., July, Ropness steamers.
Steamers Sidmouth (Br.) and Caprera (Ital.), Balti¬
more to Italy, coal, p. t.
Steamer Apolo (Span.), Baltimore to River Plata,
coal, p. t.
t - Ten Months Ending April - ,
, - 1913 - ^ , - 1914 - r-, - 1915-
Tons. Value. Tons. Value. Tons
Value.
445,118 2,286,424 3,63,5,117 19,353,251 3,000,205 15,7,50,121 2,856,521 15,111,786
18
17J
212
24
1,14 5
219
Uruguay .
84
559
Otlier countries. .
3,438
16,637
8,391
37,492
66.324
335,903
50,077
246,438
50,101
236,826
Total .
1,978,194
4.53,527
2,324,089
3,701,441
19,689,154
3,0.50,366
15,997,108
2,906,858
15,349,976
*Rituniinous —
253,273
747,644
960,233
2,878 538
Canada .
395,027
836,394
38i;223
825,728
9,093,740
22,356,868
9,972,979
23,377,674
6,962,352
15,211,979
Panama .
.33,073
89,189
42,946
115,610
393,449
1.061,988
314,467
850,797
261,343
714,719
Mexico .
24,453
95,918
32,966
143,879
350,201
976,388
259,575
873,160
838,919
1,484,007
Cuba .
63,091
187,027
101,013
286,837
1,035.110
2,777,497
965,528
2,683,310
882,572
2.484,542
Other West Indies
and Bermuda..
56,213
164,332
55,055
168,845
502,891
1,416,788
481,284
1,407,734
379,015
1,159,900
Argentina .
18,966
54,350
79,531
239,640
118,354
336,684
297,328
901,356
Brazil .
15,831
53,330
66„582
196,024
212,668
676,6.58
339.597
1,037.464
Uruguay .
4,179
13,.5.37
36,503
104,520
44,671
130,649
77,270
225,992
Other countries. .
160,604
471,920
63,576
191,822
911,299
2,629,509
1,066,061
3,144,491
576,679
1,718,064
Total .
772,037
1,964,997
1,112,668
3,020,549
12,28.5,090
31,219,038
13,435,587
33,481,052
11,075,308
27,826,561
Steamers Patras (Ital.) and Clearthia (Greek), a Vir¬
ginia port to west coast of Italy, coal, 40s. and 44s. 6d.,
respectively.
Steamer Kanaria (Greek), Atlantic Range to Italy,
coal, 41s.
Steamer Balgray (Br.), Baltimore to Piraeus, coal, 44s.
Schooner-Charles Noble Simmons, Philadelphia to Porto
Cabello, coal, $4 and discharge.
Schooner L. H. Goward, Baltimore to Porto Rico,
coal, p. t.
Steamer Thelma (Nor.), Newport News to Havana,
2,000 tons coal and coke, p. t.
Steamer Wascana (Nor.), Norfolk to Rio Janeiro, 8,000
tons coal, p. t.
Steamer Devian (Br.), Baltimore to Chile, coke, p. t.
•Steamer Florida (Dan.), Baltimore to Copenhagen or
Gothemburg, coal, p. t.
.Steamer .Styliani Bebis (Greek), Baltimore to west
coast of Italy, coal, 42s., prompt.
Bark Blanca (Nor.), Norfolk to Pernambuco, 2,250 tons
coal, $7.
Schooner Samuel W. Hathaway, Philadelphia to Guaya¬
quil, 1,400 tons coal, p. t.
Schooner Henry S. Little, Philadelphia to Summerside,
P. E. I., coal, ?2.25.
Schooner Bayard Barnes, Philadelphia to Bahia, 1,400
tons coal, $7.75.
Philadelphia May Exports.
Exports of coal from the port of Phila¬
delphia during the month of May, 1915, were
as follows:
Anthracite. Bituminous.
Italy .
12,343
Norway .
6,506
.Spain .
16,045
Canada .
. . 1,898
Mexico .
2,218
Newfoundland .
. . 2,02,3
473
Jamaica .
1,886
Other British West Indies. . . .
iio
967
Cuba .
. . 5,583
57,611
French West Indies .
799
Argentina .
4,078
Brazil .
4,724
Total .
.. 9,614
107,645
*Do not include fuel or bunker coal laden on vessels ergaged in the foreign trade, which aggregated during the
month and ten months ending April, as follows: April, 1914, 695,192 tons, valued at $.2,297,465; April, 1915, 655,465
tons, valued at $2,201,197. Ten months ending April, 1913, 5,976.266 tons, valued at $19,317,988; 1914, 6,449,722 tons,
valued at $21,071,815; 1915, 5,686,855 tons, valued at $19,108,485.
Welsh Freight Rates.
Recent fixtures from Cardiff have been as
follows: Aden, 22s 6d; Bombay, 25s; Bor¬
deaux, 14 fr.; Gibraltar, 17s; Las Palmas, 20s;
Lisbon, 15s 6d; Madeira, 20s; Marseilles, 25
fr.; Naples, 24s; Rosario, 25s 6d; River Plate,
24s 6d and 26s; Savona, 21s and 22s 6d.
From the Tyne, recent fixtures have been
as follows: Algiers, 19s and 20s; Genoa, 25s
to 27s 6d; Gibraltar, 19s; Lisbon, 20s; Naples,
27s 6d; Porto Vecchio, 28s 6d; Rouen, 15s 6d.
Canal Prices Advance.
The Panama Railroad Company has issued
the following announcement:
“On September 1st, 1915, the price for Poca¬
hontas coal delivered to steamers calling at
Colon and Cristobal, will be increased from
$5.40 to $6.00 per gross ton trimmed into
bunkers; and at Balboa from $6.40 to $7.00 per
gross ton trimmed into bunkers.
“The prices, which will be maintained until
further notice, are based on steamers’ gear
being used in the loading of bunkers. If
gear is not available, or cannot be used to ad¬
vantage, and in the judgment of our agents
a crane or hoist must be supplied, the charge
for this will be $1.00 per hour.
“In the event officers or agents of steamers
order more coal than can be conveniently
loaded into bunkers, thus resulting in coal
being left in cars or barges, a charge to reim¬
burse the company for the expense of handling
the coal ordered but not taken will be made
at the rate of twenty-five cents per ton for
that left in cars, and fifty cents per ton for
that left in lighters.”
Porto Rico received from the United States
11,791 tons of bituminous coal in April of
this year, as compared with 8,113 tons in
April, 1914. For ten months ending April
30, 1915, 93,426 tons were received from the
United States, as compared with 87,683 Ions
for ten months ending April, 1914, and 79,392
tons for ten months ending April, 1913.
Anthracite shipments to Porto Rico in April
were ninety-four tons, as compared with 206
tons in April, 1914. For ten months ending
April 30, 1915, anthracite shipments to Porto
Rico were 1,579 tons, as compared with 2,673
tons for the same i)criod ending April 30,
1914, and 744 tons for ten months ending
April 30, 1913.
A London cable on Tuesday read: “The
threatened general strike in the Welsh coal
fields, because of the squabble between the
men and the owners over union questions,
caused the government to take a drastic
step today. It was intimated that the mines
would be taken over by the government and
martial law proclaimed if the strike went into
effect. .\lready several thousand men are
out.”
14
THE BLACK DIAMOND
[July 3
General Review.
Prices Are Held Firm by Restrictions of
Output, But Buying Still
Is Light.
With the exception of some bituminous dis¬
tricts in West Virginia and portions of eastern
Kcntuck}' and Pennsylvania, the coal market of
the nation is being held reasonably firm, because
the operators are refusing to ship coal until it
is sold. As a consequence there is very little
free coal on many of the principal markets, but
business is so light that the mines are running
on the average a little less than three days a
week. Production is, in fact, between forty-five
and fifty per cent of capacity on the average.
In sections excepted, some new mines have
recently been opened and productive capacity has
been increased. The operators there are trying
to force their product upon the market and are
campaigning by means of cut prices. This is
disturbing the situation to an extent, but it is not
altering the purpose of other operators to .get a
fair price for their coal or make no sale.
According to advices from New York, the
anthracite trade in that territory is dull, as is
customary at this season of the year. The mines
are running part of the time only. However,
prices are artificially firm because the operators
are not shipping any unsold coal to any of the
principal centers. The bituminous trade shows
an improvement in spots. That is, there is a
steady increase in export business and in some
places the coastwise trade is improving, especially
in New England.
In Boston the public is indifferent to anthra¬
cite and is buying practically nothing for storage
purposes now. In New England, reached through
Boston, however, the demand is improving some¬
what. In bituminous, and especially semi-bitumi¬
nous coals, the trade is taking the larger tonnage
on contract, and one feature of importance of the
week was placing of a contract by the Edison
Company at Boston for 175,000 tons of New
River nut and slack.
Philadelphia sums up the whole situation as
follows :
The Eederal Employment Bureau reports that
positions for 2,000 miners in West Virginia re¬
main un/dled. An abundance of war contracts
and sub-contracts have recently been let to east¬
ern Pennsylvania firms. Reports of railroad con¬
ditions show that transportation problems will
be tight early in September. These things indi¬
cate a shortage of production, an increase of
demand and difficulty of transportation strength¬
ening the market on both bituminous and anthra¬
cite, altliough the latter is not showing the
improvement that it might, the season of the
year being against it.
I'hrough Baltimore the exports of coal for
June will aggregate more than 300,000 tons. This
breaks all previous records and the records that
coal men expect to make for some time to come.
Through the last week exports amounted to
nearly 80,000 tons. Coal for Italian delivery has
been conspicuous in recent activities. At the
same time there has been some improvement in
the demand at home and that is giving the whole
trade in that territory a decidedly better turn.
At Pittsburgh the operators are convinced that
the opening of the second half of the year
promises definite improvement over conditions
during the last half. Excellent crop prospects
and an increase of exports give both railroads
and steel mills a better future, while a_ gradual
increase in the movement to the lakes improves
the present market.
Central Indiana, as reported through Indian¬
apolis, shows a better buying of domestic coal,
but no increased consumption of steam coal. The
retailers are beginning to take in some cojd for
the farmer trade and thus the larger size is
strengthening. An unchanged demand for steam
coal and larger production causes prices to ease
off a little.
Western trade is, from a standpoint of price,
the strongest part of the market. That is, the
mines are running only about half time, but all
of the producers in Indiana and Illinois, with a
very few exceptions, are announcing an advance
in circular price of fifteen cents a ton on the
domestic sizes, effective the first of July.
Minneapolis is inclined to believe that the
worst part of the year is passed and that the
quarter just entered upon contains a good deal
of promise from the selling^ standpoint. That
is the time of year when retailers begin to think
seriously about coal and already there are indi¬
cations that this year will be no exception to
tlie general ride,
Chicago Market.
Prices Are Advancing But the Volume
of Business Does Not
Increase.
Office of The Black Dia.mond,
Chicago, July 1.
The distinguishing feature of the Chicago mar¬
ket this week is a general tendency to advance
prices. Nearly every western coal will sell for
fifteen cents a ton more on the first of July than
it has sold for within the last month or six
weeks, h'or the last week there has been a de¬
cided disposition to consider circular prices as a
positive minimum. Beginnine with today the
disposition will be to consider the new circular
price as a positive minimum. The western oper¬
ators are not getting much more business than
they were a week or two ago, which means that
they are only running on about half time. At
the same- time the western operators see no rea¬
son why they should continue indefinitely to sell
their coal for cost of production or less. The
western spirit is to get more monev for coal or
not sell it.
The same idea does not obtain on all of the
eastern coals. Anthracite and smokeless are
strong as to price but some of the other eastern
coals are still on the bargain counter and the
operators are expecting not only lots of tonnage
but lots of revenue. Anthracite is extremely
dull, all things considered. Some selling agencies
report a fair volume of business for June; others
say that sales were unprecedently light. On the
average the tonnage moved was considerably below
normal. The operators have accepted the fact that
the people are hard un and that the retailers are
not in a binfing mood. As a consequence they
have kept the coal off the market and this re¬
striction of output and free shipment alone gave
the market any kind of tone at all. The situa¬
tion does not improve any with the appearance
of July and the outlook is decidedly uncertain.
Smokeless coal is artificiallv firm but the mar¬
ket cannot be said to be stromr. This coal is
used mainly by apartment houses and hence is
bought by real estate agents who have been col¬
lecting their rents regularly and hence have not
been short of money. However, real estate firms
are not buying for storage, preferring to delay.
The retailers as a consequence have not been
buying and this has made the market a little
dull. The demand for lump and egg is fairly
strong mainly because production is light since
the operators have no market for slack. The
same grades of lump and egg have been selling
at a premium or at $2.10 for the last week or so
and on the first of July the new circular price
became $2.00 which it will not be difficult to get.
Prices up to Thursday, carrying of course the
June circular, were:
F. O. B. F. p. B.
Smokeless — Chicago. Mines.
Mine run . $3.30 $1.25
I-ump and egg . 3.95 1.90
Somerset county coal has been moving slowly,
being subject to about the same conditions as
govern the smokeless market. There is not any
very large immediate demand but there is enough
demand in fact to warrant the operators in hold¬
ing their deliverable tonnage open for the higher
price instead of sacrificing price to get business
now. As a consequence the market has remained
firm at the June circular, prices up to Thursday
being : '
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@3.95 1.70@1.90
The Hocking market has been decidedly quiet
for the last week or two but sales agents report
a better inquiry for July delivery and this has
transferred the market status from one of tech¬
nical firmness to one of actual potential strength.
Prices up to Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
It4-inch lump . $3.15 $1.50
The Kanawha market is demoralized, largely,
it seems, because the mine development in that
district has in the last year or so been overdone
and because various concerns are campaigning
so vigorously for business now. In some places
the campaigning is being done at the expense of
price and the buyer is almost naming his own
figure within reason. On shipments direct from
the mines prices up to Thursday were as stated
below, although these prices have been lowered
on spot business.
F. O. B. F. p. B.
Kanawha — Chicago. Mines.
Iti'inch lump . . . .$3.00@3.15 $1.10@1.25
Eastern Kentucky coal is in alxuit the same
position that it has been, prices and conditions
being unchanged. Prices are low and the de¬
mand for coal is small. On shipments direct
from the mines prices up to Thursday were as
(juoted below, spot sales being made for less.
„ F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
6-inch block . $3.15@3.65 $1.25@1.75
Lump . 3.05@3.40 1.15@1.50
Egg . 2.90@3.00 1.00@1.10
Franklin county prices advanced to $1.50 for
prepared sizes, effective July 1st. For the last
week the June circular price of $1.25 has been
the minimum. The mines are holding for this
price regardless of the fact that the mines of
the whole field are working at slightly less than
fifty per cent of production capacity. The out¬
look is improving a little in that inquiries are
somewhat larger. Retailers also are beginning to
buy to satisfy the harvest demand. Screenings
have been a trifle easier, being quoted at eighty
to eighty-five cents.
F. 0. B.
F. O. B.
Franklin County —
Chicago.
Mines.
Lump .
$1.35
Egg .
1.35
No. 1 nut .
1.35
No. 2 nut .
. 2.40
1.35
Mine run .
1.10
2*inch screenings .
.90
The leading Williamson county operators put
out a new circular this week announcing an ad¬
vance in price to $1.50 effective July 1st. Some
few operators will be content with circular of
$1.40. The mines in that field on the whole are
working to_ a little less than 'fifty per cent of
capacity with, curiously enough, the best de¬
mand for the domestic sizes and for the very
small steam coal. The larger sizes of steam coal
and the smaller sizes of domestic are moving-
very slowly. Prices up to Thursday were :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump .
Egg .
No. 1 washed.
No. 2 washed.
$2.40 $1.35
2.40 1.35
2.40 1.35
2.40 1.35
Saline county operators have not yet decided
on the question of price policy for July but most
of them will probably follow the example of
Franklin and \Villiamson counties. For the last
week June circular of $1.35 on lump has been
minimum and screenings have been a trifle easier
at about seventy-five to eighty cents. Prices up
to Thursday were:
F. O. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.40 $1.35
Mine run . 2.15 1.10
Screenings . 1.95 .90
lJ4-inch lump . 2.30 1.25
Without any material, although with a small
increase in demand for domestic lump, most
Springfield operators will advance their circular
price to $1.50 on July 1st. For the last week the
June circular of $1.35 has been the minimum.
There is a smaller demand for screenings, due to
closing the factories incident to the strike of
carpenters, painters, etc., in
Chicago.
This has
cased down the screenings
price to :
F. O. B.
F. O. B.
Springfield —
Chicago.
Mines.
r.ump .
$2.17
$1.35
Egg .
3.17
1.35
Nut .
2.17
1.35
Mine run . r. . . .
1.87
1.05
Screenings .
1.67
.85
Clinton, Ind., operators will follow the lead of
other companies in advancing domestic prices
hut screenings are easier owing to the small de¬
mand. Prices up to Thursday were :
F. 0. B.
F. 0. B.
Clinton —
Chicago.
Mines.
Domestic lump .
$1.30
Egg .
. 2.07
1.30
Nut .
. 1.97
1.20
Mine run .
. 1.87
1.10
Screenings .
. 1.62
.85
Knox county domestic is a trifle stronger and
prices are rising but steam coals are not
quite so
strong. Prices
up to Thursday were:
F. 0. B.
F. 0. B.
Knox County —
Chicago.
Mines.
5-inch lump .
. $2.12
$1.25
3-inch lump .
. 2.02
1.15
S-inch egg .
. 2.02
1.15
3-inch egg .
. 2.02
1.15
Mine run .
. 1.87
1.05
Screenings .
. 1.67
.80
Most of the coke that is now moving is on con¬
tract and sales on the spot market are small.
Contract prices are on the average ten to fifteen
cents a ton below those quoted for current ship¬
ment. Spot prices up to Thursday were :
F. O. B.
Coke — Chicago.
Connellsville .
Ry-product, foundry .
By-product, egg and stove
By-product, nut .
Sas house . .
$4.75
4.85@5.10
4.65
4.65
3.75@4.90
No. 1]
THE BLACK DIAMOND.
15
Pittsburgh Trade.
Crops Are Good and Foreign Orders Are
Larger Giving Better Business
and Prospects.
Office of The Black Diamond,
1503 Oliver Building,
Pittsburgh, Pa., July 1.
With the first half of 1915 closed and the
second opening, there are unmistakable signs
of a general improvement in the coal trade;
the local market showing an excellent under¬
current of strength considering the midsum¬
mer dullness and absence of any concerted
buying movement for domestic use. A New
York stock broker fitly said “with excellent
crop prospects, further improvement in busi¬
ness, big exports, and the plentiful supply ol
money, European complications can only
temporarily delay another period of activity,”
and we think his remarks will apply to coal
and coke, as well as to stocks, for while the
local market has been devoid of any startling
features the past week, there have been devel¬
opments here and there, that emphasize the
continued betterment of trade on the whole.
Mine capacity is expanding gradually in the
independent trade, and at the mines of the
coke-producing steel makers, the average is
about seventy per cent of normal, thus giving
employment to larger numbers than for some
time past.
Higher prices continue to be talked of iu
both coal and coke trade, and some business
has been turned down for the third quarter,
and last half by operators, who are firm in
their determination not to mine coal at pres¬
ent figures.
There is a deal on in Pittsburgh now cover¬
ing nearly a million tons of coal that will likely
be closed the present week but we refrain
from giving names, or buyer’s location in
connection with the deal, as there’s “many a
slip ’twixt the coal and the consumer” these
days. There are deals and rumors of deals
galore in the Pittsburgh atmosphere now atnd
operators intimate that prices are stiffening
to quite an extent, except on slack, which has
slumped, owing to the larger demand for
screened coals and consequent larger produc¬
tion.
The Pittsburgh-Buffalo Company is reported
to have closed with one of the largest eastern
steel manufacturers for their fuel supply for
the coming year at a new advanced figure,
and that a large export order from the east
will likely be consummated by them the present
week as well as some smaller tide water ton¬
nages that are now being negotiated. In¬
creased export, inquiry seems to be general,
and line trade showing a slight improvement.
Quite a number of public contracts are now
closing, as noticed on another page of this
issue for the year commencing July 1st.
The lake trade still remains inactive and
it is reported vessel capacity can be had at
almost any price — but no takers — what will
develop a little later ’tis hard to tell, but with
the time limit narrowing down to nearer cold
weather, it looks as though a scramble would
develop a little later, unless there is much
more coal on the docks than reported. Much
irregularity still maintains as to prices, but
as near as quotable, the following would rep¬
resent the market:
F. O. B. Pittsburgh —
.Slack . $ .65® .75
Mine run . 1.00@1.15
54 screened coal . 1.20@1.25
T !4 screened coal . 1.25..1.."5
4 in. block . 1.50
At the mines work is spotty, operators
producing where they can best meet their
requirements, some working, as have the Mari¬
anna mines of the Pittsburgh Buffalo Company,
full capacity for the past two weeks and others
at only two or three days’ time a week.
The new tipple of tho Meadowlands Coal
Company at Arden Mine No. 2 will be in
operation next week and anticipate a steady
run.
The new mine of the P. C. & Y. Coal Com¬
pany at Thornburg, on the Pittsburgh, Char-
tiers and Youghiogheny R. R., -will commence
operations in about ten days with a capacity
of 800 tons. This is a new company — Mr. B.
S. Hammel, president — and has a thoroughly
modern equipment. In Washington County
preparations are being made for resumption
of work at several points, that indicate in¬
creased production.
The old Castle Shannon coal tipple, at Oak
Station, on the former line of the Pittsburgh
and Castle Shannon Railroad, and a land¬
mark for the past forty years, has just been
torn down, the mines at that point having
been worked out, all irons removed and the
workings abandoned. In its day this was one
of the most important near Pittsburgh mines.
The Ohio and Monongahela rivers remain
at a low stage, and outside of transferring
empty coal craft from the Pittsburgh harbor
to the upper pools for reloading there is no
activity in the river trade.
The coke market continues a little uncer¬
tain but better on the whole, though the mer¬
chant producers are not yet experiencing the
increased activity that the steel-making pro¬
ducers are. The pig iron market was less
active the past week, though the sale of a
block of 10,000 tons of basic was reported
closed in this district.
Furnace coke continues in better demand
than foundry and producers are holding stift
for $1.75 for contract, though small spot lots
are sold down to $1.50 and $1.60. So far as
(luotable the market would range as follows:
Prompt furnace . $1.50
Furnace, July . 1.00
Furnace, second half . 1.75
Prompt foundry . $2.00@2.50
Contract foundry . 2.20@2.50
News in and Near Pittsburgh.
The Hicks Coal Company’s tipple near West
Apollo, Pa., and surrounding buildings were
burned Monday last involving a loss of $100,-
000.
The Pittsburgh Coal Company has declared
the usual quarterly dividend of one and one-
fourth per cent on the preferred stock, payable
July 24 to holders of record July 15.
At a special meeting of the Evans Coal &
Coke Company, Connellsville, Pa., the re¬
building of the tipple at plant No. 2 at Evans
Station and the purchase of a gasoline haul¬
age system, were authorized. This wilt entail
an expenditure of approximately $10,000. The
work will be started at once.
M. F. McDermott, general sales manager
for the Pittsburgh-Buffalo Company, returned
from a successful business trip east last Mon¬
day, having closed some large tonnage deals,
for the coming year. Mr. McDermott is very
optimistic as to both home and foreign busi¬
ness for the future.
Coal under 7,000 acres of land in Jefferson
County near Stubenville is to be removed by
steam shovels instead of by the customary
methods of mining. The property, located
between the Pennsylvania and the Wabash-
Pittsburgh terminal railroads, has been pur¬
chased by a syndicate composed of Pittsburgh
and Columbus men. Steam shovels by which
the earth will be scooped from off the coal
are being installed and active operations, it
is stated, will be under way within the next
two weeks. Twenty-five men and the shovels
are expected to do the work of 400 skilled
miners.
At a meeting of the stockholders of the
Penn Scott Illinois Coal Company, held last
week at the office of Attorney H. H. Emmeret,
Martinsburg, West Va., the formal organi¬
zation of the company was affected by the
election of the following officers: President,
H. H. Emmert; vice-president, W. A. Roush;
secretary-treasurer, T. W. Martin. Directors
— H. H. Emmert, W. A. Roush, T. W. Martin,
C. G. Smith and F. C. Foreman. The com¬
pany was recently granted a charter under
the laws of West Virginia, the authorized
capital being $] ,000,000. Much of the stock
has been sold, and a substantial sum has
been paid in. The company owns 8,000 acres
of coal land in Illinois, and it is said that
the land is very valuable. The principal office
of the company will be in Martinsburg.
Toledo Market.
Toledo, Ohio, July 1. — {Special Correspond¬
ence.)— has been no variation in the
market since last week. There is some little
additional stren.gth, according to some dealers,
while others are more pessimistic and do not see
anything to feel specially hopeful about. The
West Virginia coal is just now carrying every¬
thing before it and has the firmest hold on the
market, as the Ohio producers are not able to
meet the competition very well. There is some
little lake movement ; indeed, this portion of the
trade has shown considerable improvement re¬
cently. Steam and domestic are quiet and the
threshing season has not yet opened up enough
to make any impression. Quotations have
changed very little, but list prices are not being
very closely maintained.
Pocahontas will be advanced tomorrow to $2.00.
The demand is strong, with a light supply. The
scarcity of the better grades of smokeless is due
to curtailed production, owing to the fact that
there is no market for the consequent fine coal,
F. O. B. F. O. B.
Smokeless — Toledo Mines
Lump and egg . $,3.45 $2.00
Mine run . 2.70 1.25
Pomeroy is dull, waiting for the threshing
season, which will undoubtedly inject more life
into the market. Prices are unchanged.
F. O. B. F. O. B.
Pomeroy —
Toledo
Mines
Domestic .
$1.60
Egg and nut .
. 2.35
1.35
Hocking movement continues slow and the lake
trade is not very active, as the competition of the
West Virginia coal
is not being very well
met.
F. O. B.
F. O. B.
Hocking —
Toledo
Mines
3-inch lump .
. . 2.50
1.50
154 -inch lump .
1.40
54-inch lump .
. 2.35
1.80
Egg .
1.25
Nut .
. 2.15
1.15
Mine run .
. 2.10
1.10
I'he West Virginia better grades are meeting
an increased demand, especially for lake ship¬
ment. Prices remain the same.
Kanawha Gas —
^-inch lump .
Mine run .
1.05
.95
Fairmont —
154-inch lump .
1.05
^-inch lump .
. 2.20
.95
Mine run .
. 2.10
.85
F. O. B.
F. O. B.
Kanawha Splint —
Toledo
Mines
4-inch lump .
. $2.75
$1.50
2-inch lump .
1.40
54-inch lump .
1.15
Mine run .
1.00
Kentucky coal is enjoying a little stronger call
and some of this coal is going up the lakes. A
better demand is expected later next month when
the tractor demand is at its height.
Kentucky —
4-inch lump .
Egg .
Nut, pea and slack
F. O. B. F. O. B.
Toledo Mines
,.$2.75 $1.50
. . 2.50 1.25
..open open
Massillon coal is still slow and prices at rock
bottom.
F. O. B. F. O. B.
Massillon— Toledo Mines
Lump . $3.25 $2.50
Washed nut . 3.25 2.50
Pittsburgh No. 8 is showing very little strength
or activity on this market and prices remain
unchanged.
Pittsburgh No. 8 —
lt4->nch lump . 2.40 1.40
i4-inch lump . 2.20 1.20
M'.ne run . 2.10 1.10
Youghiogheny is slow in demand and prices
are being set largely by the buyer. Quotations
remain unchanged.
Y oughiogheny —
Mine run . 2.45 1.20
54-inch steam lump . 2.55 1.30
Blossburg Smithing —
Prepared size . 3.20 1.75
Lilly smithing, prepared size . 3.20 1.75
Cambridge movement is light and prices the
same.
F. O. B.
Cambridge — Toledo
Mine run . $2.10
54-inch lump . 2.20
l}4-inch lump . 2.40
F. O. B.
Mines
$1.10
1.20
1.40
Cannel, being a purely domestic coal, is nat¬
urally slow at this season. Conditions are about
normal for the season and prices are unchanged.
Cannel —
Kentucky Cannel lump . $4.60 $2.75
Pennsylvania Cannel, egg . 8.60 *.15
Pennsylvania Cannel, lump . 4.20 2.75
Ohio Cannel . 3.85 3.00
Toledo Local News.
President Elmer Miller of the Elmer Miller
Coal Company was in Columbus this week.
D. A. Vowles, Cincinnati agent of the Elmer
Miller Coal Company, and L. C. Brown, the Ohio
representative of the same company, were visitors
at the home offices in the Nicholas building this
week.
C. T. Harther, of the Central States Coal Com¬
pany, was honored by being elected vice-president
of the i\Iichigan, Ohio and Indiana Coal Dealers’
Association at its recent meetin.g. Mr. Harther
is one of Toledo’s successful and hard working
jobbers. He has been in business here but a few
years, but by his persistent efforts, strict attend¬
ance to business and straightforward methods
has w'on a position near the top in the Toledo
trade.
16
THE BLACK DIAMOND
[July 3
Cincinnati Trade.
Because Consumers Are Beginning to
Store Coal, the Demand is Better —
Smokeless Is Strong.
Cincinnati, Ohio, July 1. — {Special Corre¬
spondence.) — But little change is noted this week
in the splint situation, but many of the companies
report an improvement. These handle the finest
grades of splint. Those who have been selling at
lower prices see no improvement. There is an
improvement in stocking. Some of the com¬
panies report a beginning of storage of splint
coal in cellars of users.
The better grade of four-inch lump sells at
$f.25; run of mine at ninety cents to $1 for fu¬
ture shipment and eighty-live cents for spot de¬
livery, while nut and slack ranges from sixty-five
to seventy-five cents. One operator quotes four-
inch splint lump at $1.25 to $1.50, run of mine
seventy-live cents to ninety cents, nut and slack
thirty-five to fifty cents with higher and special
grades going at better prices. This operator de¬
nies that there is any spot price. He says the
bidder gets the coal at the first bid.
Miller’s Creek may be taken as a sample of
the prices of the better grade and better adver¬
tised coals. Four-inch lump brings $2; two and
one-half inch, $1.90; nut and slack, eighty, cents,
with business dull in all these grades. Miller’s
Creek coal is moving principally to the lakes
and goes into storage there in large tonnage.
Yellow Jacket coal is another product that is
moving nicely and smoothly for the reason that
the Middle West Company never takes refuge
in low prices in dull times or in high prices in
greatly prosperous times.
The export demand was felt very strongly at
the opening of the week and at the close was
pulling hard at the mouth of the miiie. The
smokeless mines are running on better time gen¬
erally, and some of them are in the market for
smokeless coal. One company wanted 100 cars
last week. Jobbers are after smokeless, regard¬
less of whether it is New River or Pocahontas,
and are not having much luck. Contracts are be¬
ing renewed at the prevailing prices.
Other features in the market are a plentiful
supply of cars, the evidences of stringency noted
earlier having disappeared under the new rules
regarding distribution and removal of cars at
mine yards. Labor is growing somewhat scarcer
but that is not an embarrassment in the splint
regions where the rule is now three and four
days a week.
Cincinnati Trade News.
O. If. Iledrich, of the O. H. Hedricli & Co.,
Chicago, paid a visit to the coal men of the city
within the past week.
R. S. McVeigh, vice-president of the Island
Creek Coal Sales Company, returned this week
from an extended trip in the northwest, then
went east to New York City.
Ira J. Prugh of the Otto Marmet Coal Com¬
pany sports a fine past master’s jewel bestowed
by Cynthia Lodge, F. & A. M., a few days ago
on his retirement from the master’s chair.
N. V. James, secretary-treasurer of the War
Eagle Coal Company, spent most of the week
in Cincinnati a guest of friends. He is greatly
benefited in health and is slowly improving.
George P. Daniels of the Smokeless Fuel Com¬
pany, with headquarters in the Union Trust build¬
ing, returned home Monday from a trip through
the north and northwest, and into Canada, ex¬
tending as far as Nova Scotia. He was on the
trip over two weeks.
C. R. Hinsch and J. IT. Briscoe, members of
the firm of Hinsch & Briscoe, Union Central
building, spent the week in a touring car chasing
down business in cities and towns all over Ohio.
It was a novel and useful method of gaining
health, rest and business all at the same time.
E. J. Howe, of the Pocahontas Fuel Company,
president of the Cincinnati Coal Exchange, re¬
turned home Tuesday after a week at Cedar
Point in attendance on the meeting of the M. O.
1. convention. Mrs. Howe accompanied her hus¬
band on the tri]) and after the convention they
lingered on the lake front for several days.
John M. Wright, accompanied by Mrs. Wright
and the children, are at Watch Hill, R. I., enjoy¬
ing the sea breezes and they will spend the sum¬
mer there. Mr. Wright is president of the
Raleigh Coal & Coke Company and usually
siiends his summers in his Michigan summer
home, but this year he wanted to be in touch
with tidewater and watch the exportation of the
Raleigh product. He will run down the coast
occasionally to watch the exportation at New
York, Roanoke and Newport News.
Among visitors in the city at the end of last
week were W. H. Ball, coal and coke agent of
the Semet-Solvay Collieries, C. D. Weeks of the
Milwaukee Coke & Gas Company, and Quinn
Morton of the Imperial Coal Sales Company.
They passed through the city returning from the
M. O. 1. convention and called on connections
here.
A. A. Liggett, secretary of the Raleigh Coal &
Coke Company, is about his duties after a severe
illness of several weeks caused by a fall. A
blood clot paralyzed his right ear and eye, and
his sight and hearing were badly impaired for a
time. Under treatment these are returning
slowly and Mr. Liggett is regaining his health
and strength.
The yards and tipple of the Reliance Coal &
Coke Company below the city are rapidly ap¬
proaching completion. The new yards will hold
a heavy stock and the tipple is a combined rail
and river equioment and coal can be loaded either
way. While the yard is not yet opened, the com¬
pany is storing about 3(), ()()() tons for present
needs and will later store to the full capacity
of the yards.
A party of about fifty malleable iron and gas
men of Chicago and vicinity returned through
Cincinnati this week, having been guests of the
Consolidation Coal Company in the Elkhorn
region. The distinguished visitors were inspect¬
ing the coal mines and facilities of the Consoli¬
dation Company in order to understand the
situation there and to learn of the qualities of
the products of the company.
Burke H. Keeney, formerly with the Bewley-
Darst Company, but late sales manager of the
Leitch Collieries, Ltd., handling the Passburg,
Alberta, coal, was in Cincinnati this week. He
became connected with the Middle West Coal
Company Thursday morning and will have
charge of the Detroit offices of the company and
will handle the Middle West business in that ter¬
ritory. Mr. Keeney is well known among coal
dealers of this territory and has many friends
all over the country.
The Reliance Iron & Coke Company, which
was recently incorporated at Columbus, and
which will operate in connection with the Re¬
liance Coal & Coke Company, is at work now,
having organized for business the past week.
Julius Fleischmann is president; Herbert Black,
vice-president and general manager; Charles J.
Christie, secretary, and William S. Minor,
treasurer and chairman of the board. Mr. Black
was formerly connected with the Hickman-Wil-
liams Company, iron and steel firm, being sales
manager of that firm. The new company will
handle the iron and coke production of its con¬
nections.
Denver Trade.
Denver, July 1. — (Special Correspondence.) —
While the retail business is dull and almost life¬
less, operators and jobbers report a very fair
business on storage. The former condition is
due to the warm weather prevailing in the terri¬
tory tributary to this market, with only a light
demand for threshing coal as an encouraging
feature. During the past week especially, and
for nearly two weeks, there has been excellent
storage bookings. There has been a general tail-
end rush on the part of dealers to take advan¬
tage of prices before the advance on July 1st.
Many operators were already behind on the fill¬
ing of storage orders and will go over into the
new delivery month with many June orders un¬
filled. This means a steady output for some little
time to come.
Nearly all of the lignite mines are shut down
this week, and their output will show but little
increase until the opening of the sugar factories.
There is some inquiry, however, for coal for
threshing purposes.
Trinidad is leading the state in tonnage for
the week, with Routt second. Mines in the lat¬
ter district have been making better than full
running time. Walsenburg has received its
share of storage bookings and will record a
heavier output than last week.
Lignite slack is scarce, but there is a moderate
surplus of bituminous, especially from Routt
county. There seems to be at the present time,
not a very strict adherence to any fixed selling
price. The range is so irregular that it is next
to impossible to line up existing quotations. It
is thought, however, that these conditions will
soon be adjusted.
Lignite prices f. o. b. mines are as follows :
For Denver delivery, lump, $2. ,35 to $2.05 ; mine
run, $1.50 to $1.65; slack, $1.05 to $1.25. For
delivery to points outside of Denver, lump, $2.50;
mine run, $1.55 to $1.65; slack, $1.05.
Canon City District — Lump
For shipment May and June . $8.60
For shipment July and August . 2.76
Add 26 cents to above prices for washed nut.
Walsenburg District —
For shipment May and June . 2.60
For shipment July and August . 2.76
Washed nut 25 cents per ton additional.
Chestnut, $1.26 for entire season.
Trinidad District —
For shipment May and June . 2.00
For shipment July and August . 8.00
Routt County District —
For shipment May and June . 2.60
For shipment July and August . 8.75
Western Slope District —
For shipment May and June . 2.26
For shipment July and August . 8.60
From Baldwin, shipments for points east of
are 76 cents per ton less than Walsenburg prices.
Nut
$2.00
2.25
2.00
2.25
1.7S
1.71
2.01
2.2i
Denvef
The State Coal Company, a co-operative con¬
cern operating a lignite mine near Erie for about
five years, has been forced into the hands of a
receiver on the petition of minority stockholders.
They have fought against heavy odds for the
past two years, including dissension among the
stockholders, a lack of capital and workings par¬
tially filled with water. The coal is a splendid
grade of lignite.
Indianapolis Trade.
Indianapolis, Ind., July 1 — (Special Corre¬
spondence.) — Aside from a little increase in
the demand for domestic coal there has been
no change in the situation in Indiana during
the last week. Domestic is stronger but prices
are about the same as they were at this time
last year. There is a demand among the
wheat threshers for domestic coal that is
helping to tide the operators and jobbers over
a very dull period. Domestic consumers in
Indianapolis and the larger cities of the state
are beginning to buy for the early fall and
winter, but the movement of domestic here
is about the same as it has been for the past
month. That June, 1915, will not come up
to June, 1914, is apparent. There was less
steam coal moved into Indianapolis the past
month than there was a year ago. Practically
every operator seems to have come to the
conclusion that the demand for steam coal
is not going to increase much until times are
betteh. There are more mines closed down
in Indiana than there have been for a number
of years and the production is below normal,
yet some of the operators are predicting that
the demand for steam coal will pick up by
September 1 and that it will be better then
than it was a year ago. However, there are
no signs now of a revival among the industrial
concerns, which are large consumers of coal.
Contracts are being made now by the oper¬
ators and jobbers at practically the same quo¬
tations that were made last year.
The following prices are being quoted by
the Indiana wholesalers;
F. O. B.
Indiana — Mines.
No. 4 mine run . $1.10@1.20
Nos. 5 and 6 mine run . 1.00@1.10
No. 4, l}4-inch steam coal . 1.30@1.40
Nos. 5 and 6, l}4-inch steam coal 1.20@1.30
No. 4 egg . 1.30@1.40
No. 4 nut . 1.25@1.30
No. 5 egg . 1.26@1.35
No. 4 screenings . 85(a .90
No. 6 and 6 screenings . 80@ .85
Domestic lump . 1.40@1.60
No. 1 washed coal . 1.75
No. 2 washed coal . 1.65
Brazil block . 2.00@2.10
Southern Indiana Field —
No. 5 mine run . 1.00@1.10
Domestic . 1.40@1.50
F. O. B.
Indianapolis.
$1.60@1.80
1.50@1.60
1.80@1.90
1.70@1.80
1.80@1.90
1.75@1.80
1.76@1.85
1.85@1.40
1.80@1.S5
1.90@2.00
2.25
2.15
2.50@2.60
Frank 1. Pearce, former state mine in¬
spector, has issued an interesting statement
regarding the coal trade. He deals with the
• waste in mining, overproduction and com¬
petitive-conditions which he says must soon
come before the people of the country as an
urgent problem to be solved. He says that
in 1910 there were 182 mines in operation in
Indiana employing 21,171 persons. There are
126 Indiana mines now. “The coal operators
of Indiana,’’ says Pearce, “together with those
of Illinois, through absolute necessity, have
at last been forced to seek some relief. Sev¬
eral meetings have been held in Indiana to
consider what can be done to alleviate the
present deplorable conditions in the coal trade.
They deserve to succeed, and will, if they are
successful in getting all the facts before the
public. The federal government and the state
government as well should take sorne cog¬
nizance of the evils of overproduction and
ruinous competition in marketing the over¬
produced product.”
No. 1]
THE BEACK DIAMOND
17
Detroit Trade.
Detroit, Mich., July 1 — {Special Corre¬
spondence.) — Buying continues light in vol¬
ume both in the steam and domestic coal
branches of the local trade. With midsum¬
mer, usually a period of sluggish market con¬
ditions, here, local shippers see in retrospect
unsatisfactory business and in the immediate
future no indication of material improvement.
Yet optimism is the most noticeable feature
of their attitude.
Domestic coal is not bought freely. Many
of the retail dealers are delaying the placing
of orders for stock which will be needed to
supply their fall trade, either, because they
feel confident that coal may be obtained at
the same price, or, perhaps, cheaper, several
weeks hence, or because they are unwilling
to have their capital tied up until the time
for distribution of the coal to consumers is
nearer at hand. Little heed appears to be
given the warning of the shippers that the
situation may change in such a wa}^ as to
make deliveries more uncertain, less prompt
and, perhaps, more costly.
Consumers of steam coal also are holding
off on putting in supplies larger than are
necessary for immediate needs. While this
in some instances is due to lack of storage
space, many of the buyers, who could accom¬
modate larger stocks, are observing the hand-
to-mouth plan of purchase. Any improvement
in general industrial conditions the shippers
believe would be reflected in increased orders
for steam coal.
The quantity of coal arriving in Detroit
does not greatly exceed the capacity of the
market for assimilation, but there are occa¬
sional shipments on which prices are below
list to effect a speedy sale. Under such con¬
ditions West Virginia slack of good quality
can be bought for forty cents, run of mine
about twenty-five cents higher and three-
quarter lump around ei.ghty cents. / Quick
sale prices on splint lump range from $1.10
to $1.20 and on Hocking lump about $1.35.
The improvement often forecasted for the
rail-lake trade is still deferred and the date
for its probable development is now set
forward to about the middle of July. Con¬
siderable demand appeared for tonnage
capacity for immediate loading early this
week, the shippers desiring to clear tracks at
loading ports before the end of the month.
The outlook is that many of the freighters
which will be available late this week, will
be unable to find coal cargoes and will be
sent up light.
Business in anthracite is rather dead, the
retailers seemingly being reluctant to increase
their stocks at present.
Prices in the Detroit market on direct ship¬
ment orders are as follows:
F. 0. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
1 hree-quarter lump .
_ $0.95@1.00
$2.35@2.40
Mine run .
2.15@2.20
Slack .
1.80@1.90
West Virginia Splint —
Four-inch lump .
2.75@3.00
Two-inch lump .
2.50@2.65
1 liree-(|uarter .
2.40f«)2 66
Mine run .
2.30@2.40
Nut, pea and slack .
1.90(®2.15
Smokeless —
Lump and egg .
8.50
Nut .
S.IO
Slack .
Open
Mine run .
Open
Kentucky Splint —
Lump .
_ 1.20@1.25
2.60@2.65
Egg .
2.40@2.50
Nut, pea and slack .
Open
Fairmount —
Three-quarter steam lump. . . .
. 85@ .95
2.25@2.35
Mine run .
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
_ 1.50
2.65
-Shaker egg and nut .
_ 1.15
2.30
Domestic lump .
_ 1.35
2.50
Three-quarter lump .
2.40@2.45
Mine run .
_ 1.00@1.10
2.15@2.25
*Nut, pea and slack .
... ( )pen
( )i>en
Detroit Local News.
V\'. E. Craig of Amherstburg has sold his
retail coal and wood business to his brother,
Joel Craig, and will take a vacation to regain
his health, which has been failing for some
time.
With capital stock of $14,000. of which
$778.37 is paid in cash and $13,221.63 in prop¬
erty, the Greenfield Coal & Supply Company
has been incorporated in Detroit by Gustave
E. Pavis, William E. Streeter, Maude M.
Pavis and Clara L. Streeter.
Bids for coal will be received until noon.
July 13, by the board of guardians of the
Michigan Industrial Home for Girls, Adrian,
Mich., Rolla L. Taylor, treasurer. The supply
required is estimated at 2,000 tons more or
less of domestic lump and 250 tons or more
of chestnut coke. Delivery is to be made on
track at the coal house of the home.
Twin Cities Trade.
MiNNE.troi.is and St. Paul, July 1. — (Special
Correspondence.) — The advent of July is being
looked upon more and more by coal shippers as
marking the commencement of a new season.
The first three months of the mining year, that
is from April 1st to June 30, are the ones of
least business and lowest prices. From the be¬
ginning of the mid-summer month demand for
storage purposes is on the upgrade, and the ap¬
proach of the threshing season gives indications
of a larger business. This year nearly all soft
coal sold in this territory w'as advanced in price.
Standard grades of dock soft coal in the lump
and stove sizes have been quite generally ad¬
vanced ten cents a ton, making the new price
$3,40 f. o. b. the docks. This advance in dock
prices did not occur with all the companies at
the same time. One company put the advance in
as early as June 18, while circulars were issued
by other companies since that date. Dock run
coal and the standard grades of soft coal
screenings remain practically unchanged at the
former range of prices.
In the Illinois soft coal trade there was an ad¬
vance in southern Illinois product of ten and
fifteen cents a ton. Harrisburg and Carterville
coals in the prepared sizes quite generally took
the former advance, whereas Franklin county
coals took the latter advance, making the circu¬
lar price for chunks, egg and nut on b'ranklin
county product $1.50. This w'as the price that
prevailed a year ago with the Franklin county
producers, and there is every indication it will
be well maintained.
Demand for Illinois coal for domestic pur¬
poses increased the latter part of June, but in
total volume was about the same as for the cor¬
responding period a year ago.
Prices on all grades of coal sold in this terri¬
tory are steady, in accordance with the circular
prices given herewith.
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 5.50 6.70
Buckwheat . 4.00 6.20
During July a discount of twenty cents per ton is
allowed on all anthracite except pea and buckwheat.
which pricer are net.
BITUMINOUS.
Splint, screened lump and stove.... $3.40 $4.36
Splint, dock run . 3.10 4.06
Hocking, screened lump and stove... 3.40 4.30
Hocking, dock run . 3.00 3.96
Youghiogheny, gas, lump and stove. . 3.40 4.36
Youghiogheny, gas, dock run . 3.10 4.06
Pittsburgh vein, lump . 3.40 4.36
Pittsburgh vein, dock run . 3.00 3.96
Pocahontas, screened lump or egg. ... 4.75 5.71
Pocahontas screened lump and egg
mixed . 4.50 6.46
Pocahontas, mine-run . 3.25 4.21
Cannel, lump . 5.25 6.21
Smithing, bulk . 4.25 5.21
Smithing, in 100-lb. sacks . 6.00 6.96
Briquets, anthracite . 5.00 5.96
Briquets, smokeless . 5.00 5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows:
Southern Illinois chunks . $1.35@1.50
Southern Illinois egg . ].35@1.50
Southern Illinois No. 1 nut . 1.35@1.50
Southern Illinois No. 2 nut . 1.25@1.35
Southern Illinois No. 3 nut . 1.20@1.25
Southern Illinois No. 4 nut . 1.10@1.20
Southern Illinois run-of-mine ... 1.10@1.25
Southern Illinois 2-in. screenings. .80
$3.55@3.7n
3,55@3.70
3.55@3.70
3.45@3.55
3.40@3.45
3.30'a3.40
3.30@3.45
3.00
Southern Illinois coal includes Franklin county,
Harrisburg and Williamson county.
The M. A. Hanna Coal Company. North West¬
ern Fuel Company, and Clarkson Coal & Dock
Company, formerly occupying offices in the Pio¬
neer huilding, St. Paul, are occupying new
fiuarters in tlie new and commodious Merchants
National Bank building in that city. The build¬
ing W'as formally opened to occupancy about a
week ago, and is tbe best in St. Paul.
The Citv Fuel Company, Minneapolis, has been
awarded the contract to supplv the new postoffice
with Purity screenings for the coming year.
William Blankenbnrg, a leading coal and grain
dealer of St. uharles, Minn., passed through
Minneapplis this week from a vacation spent at
Britain, S. D.
Birmingham Trade.
Birmingham, Al.v., July 1. — (Special Corre¬
spondence.) — The immediate demand for steam
coal is at a low point, but the renew'ing of con¬
tracts bv the railroads entering this point is an
indication that better business is coming and the
outlook better than for some time past. Within
the past thirty days contracts for over half mil¬
lion tons of steam have been placed. Other rail¬
roads entering this city are now considering pur¬
chase of the year's supply of steam coal. When
all these contracts are made it will furnish a ton¬
nage of over a million tons for this source alone.
hrom various other sources, which use steam
coal, contracts are being signed for either six
months or a year’s supply. One of the distinct
features of Alabama coal trade was the placing of
an order for 75,000 tons of Alabama steam coal
by the United Fruit Company. The entire supplv
for a number of years at New Orleans has been
coming from Pittsburgh dow'ii the Mississippi
river. And for Alabama to secure one-half the
tonnage is a victory. The coal selected for use
is the Black Creek seam of coal and from the
Warrior Black Creek Coal Company’s mines
which are located only a few miles from Birming¬
ham in the upper portion of Jefferson county.
The coal will be delivered by rail to the New
Orleans Coal Company, which in turn will de¬
liver it to the United Fruit Company. The coal
selected is considered among the best to be had
in the country. This contract was secured
through the energy and work of D. H. Brown &
Co.
This means much to the future of Alabama
steam coals going to southern points. A thorough
try out this coal was eiven under the direc¬
tion of D. H. Brown & Co. and their agents at
New Orleans, the New Orleans Coal Company.
The following is the analysis of the coal which
has proven so efficient from reports bv the engi¬
neers of the United Fruit Company:
Per cent
Moisture . 1.12
Dry Basis —
Volatile matter . 30.92
Fixed carbon . 64.43
Ash . 4.65
Sulphur . 1.08
B. T. U . 14.693
The pit ash showing as low as 5 per cent.
The DeBardeleben Coal Company secured
order for 25,000 tons for the United Fruit Com¬
pany to be delivered at Mobile. This coal is also
from Black Creek seam and is known as Sipsey.
A tramway will be constructed by the De¬
Bardeleben Coal & Coke Company, formerly the
Maryland Coal & Coke Company, from the Sip¬
sey mines to slackwater for connection via the
Warrior river barge lines. The mines are only
about six miles from slackwater.
The plan has been under consideration with
Henry T. DeBardeleben, president of the com¬
pany, for some time, and the Empire Coal Com¬
pany, it is stated, is also interested with Mr.
DeBardeleben in the construction of a line of
some kind to the river.
Either this or next week three barges of the
Pratt Consolidated Coal & Iron Company will go
down the Warrior river loaded with coal for
Mobile. The company for several weeks has been
planning to barge about 1,500 tons of coal down
the river. In barging the coal down the Warrior
to Mobile, the Pratt Consolidated Company will
be enabled to find out the exact transportation
cost, including the charges at Mobile.
Birmingham industrial men are greatly inter¬
ested in the fight being made for wharfage fa¬
cilities at Mobile. The Ledger, in Birmingham
and The Register, in Mobile, have been leading
the fight, and already a great deal of interest
both here and at Mobile has been aroused.
The following prices prevail :
F. O. B. F. O. B.
Bibb County Domestic Coal — Mine Birmingham
Cahaba fancy lump .
Cahaba No. 2 .
Jefferson County —
Fancy Steam Pratt . 1.70
Run of mine . 1.15
Jefferson Seam- —
Mine run .
Horse Creek mine run . 90@1.10 Frt. rate 40c
Carbon Hill lump, Walker Co. domestic, $1.60 to $2.00.
Most all coals based on this classification.
Shelby County Domestic Coal —
Montevallo fancy lump, $2.00 to $2.25. Frt. rate 30c.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
$2.10
$2.40
1.85
2.15
. 1.70
2.10
1.15 Frt. rate 30c
, 1.15@1.25
Frt. rate 30c
The Westchester Fuel Company of Tuckahoe,
N. Y., was incorporated on Monday under the
New York state laws, with a capital stock of
$15,000. The following are named as incorpor¬
ators: Charles M. Randolph of Yonkers, Nich¬
olas W. Hacker of Denville, N. J., and William
L. Bowman of New York. “
[July 3
18
THE BLACK DIAMOND.
New York Trade.
June Anthracite Movement Considered
Very Fair — Better Bituminous
Outlook.
Office of The Black Diamond,
New York, July 1.
As is to be expected just at this season of the
year, the anthracite coal trade is dull, though not
in such bad shape as many in the trade have
predicted. In fact, June turned out to be a
much better month than was expected earlier in
the season. The movement of coal has not been
so remarkably heavy for a summer month, but
there has been less coal sacriliced than was ex-
I'.ected, in view of the very many selling interests
now in the trade, as compared with former
seasons.
Much credit is due to the companies and in¬
dividuals for their restriction policy, so well car¬
ried out during June. As the result, the mar¬
kets today are not glutted to any radical extent
with unsold coal, unless it be the small steam
sizes, and although considerable prepared coal
has been sold off circular, and is still obtainable
at concessions of twenty-five to thirty-five cents,
on some of these low sizes, the aggregate ton¬
nage moving of these concessions is not so very
large. Chestnut coal is still a drug, but it is
not in such plentiful supply as was the case sev¬
eral weeks ago.
Due to the restriction in production, the buck¬
wheat sizes are not as long as formerly, and
prices of these are held more nearly the circular
than was the case earlier in the new coal year.
At the moment pea coal is very (lull, but sacrific¬
ing of prices on this size is being saved by the
policy of some of the large producers in putting
surplus in storage.
Most of the companies have announced a full
week’s suspension, due to the fourth of July holi¬
days, and this means that practically no coal will
be mined from this time until the latter part of
next week.
This should find supplies of coal at tidewater
very light by that time, and while the demand in
the meantime is expected to be very limited, con¬
siderable activity may be anticipated by tbe time
general mining is resumed.
The retail trade are not so busy, and through¬
out the month it is expected that pnsiderable of
their ecpiipment will be idle. This trade is ex¬
pected to drag until towards the end of August,
when large users of domestic coal will be re¬
turning from the seaside and other summer
homes.
The steam size trade is expected to show some
improvement from now on, due to the fact that a
great many small manufacturing plants around
the larger cities, where the anthracite steam coals
are popular for steam making purposes, are now
beginning to feel the effect of some of the very
large war orders that have been placed during
the past few months.
The Bituminous Situation
The Atlantic seaboard soft coal trade continues
to be very spotty. Some firms note improvement,
and all are pretty generally agreed that the con¬
tract coals are moving at this time much better
than formerly. However, everyone deplores the
lack of spot business.
Those few firms that are engaged in exporting
coal are finding it difficult to get enough coal to
tide to take care of vessels promptly, and also to
take care of their domestic business. Some of
these shippers, particularly at Hampton Roads,
are compelled from time to time to borrow coal
from one another to load ships promptly. Both
Baltimore and Hampton Roads ports will make
new records for June for exports, the total for
all the ports estimated at the moment to be well
around 1,000,000, or 1,100,000 tons, establishing a
new record. For every ton of coal exported it is
estimated that from one-fifth to one-fourth ton
is taken for bunkers. This means that to export
1,000,000 tons, approximately 1,200,000 tons of
coal are taken, and as the bunker coals usually
sell at a better price than the cargo coals, the
benefit of this trade can be appreciated.
The New England situation is in much better
shape. There is a better demand for contract
coals from the New River and Pocahontas fields,
while some of the shippers of the better grades
of Pennsylvania coals that are popular in this ter¬
ritory, are finding the demand much improved.
Coal men who have covered the manufacturing
section, particularly the machinery territory and
those plants that are now manufacturing war mu¬
nitions^ find that practically every available me¬
chanic is engaged, and that these companies are
now beginning to use up their coal piles in a
way that will call for early replenishment, or
constant shipment to keep them going. Several
coal men who studied the New England situation
\ery closely during the past week are very opti¬
mistic as to the (Outlook for the fall months.
General business in most all directions seems to
be improving, and it is expected that the bi¬
tuminous coal trade will receive very material
benefit by the middle, of August, if not before.
The shortage of labor is becoming an absorbing
topic for some of the coal producers, particularly
those who visit their mines regularly or keep in
close communication with their mine managers.
Considerable Italian labor is leaving the West
Virginia fields, and also the western Pennsyl¬
vania regions. Aloreover, where a mine is work¬
ing on short time, miners are given to leaving
to seek employment at some of the coke or steel
or other manufacturing plants, where they can
get full time.
The New York harbor ports are plentifully
supplied with low grade coals, which are seeking
sale because of being close to demurrage. How¬
ever, the accumulation of these coals is not as
heavy as was the case earlier in the spring.
Prices on inferior grades range from $2.35 up on
West Virginia coals, with fair grades of Penn¬
sylvania obtainable at $2.55 to $2.00, and good
grades at $2.75 to $2.80.
The Vessel Situation.
The coastwise vessel situation is not materially
changed. Rates are just about firm at recent
quotations. There seems to be a serious shortage'
of small schooners, particularlv for loading at
Philadelphia to Sound and noints east of Boston.
For the movement of coal from Flampton Roads
and Baltimore to New England points, the sup¬
ply of vessels at the moment seems to be ade-
cpiate. For off shore business, vessels seem to be
more plentiful, with rates to the Mediterranean
and other European ports generally, reduced.
They are a trifle firmer to South American ports,
though not materially advanced.
Current quotations are as follows : •
From Hampton Roads to Boston, seventy-five
to eighty-five cents ; to the Sound, seventy to
eighty cents.
From New York rates to New Haven are thirty
cents. New London forty cents and Providence
and New Bedford fifty cents; to Boston fifty-five
to seventy cents; Portsmouth and Portland, fifty-
five to seventy cents ; to Bangor, seventy cents.
Harbor rates are from eighteen to twenty cents.
Prices on gross tons of bituminous coal are:
Somerset County —
Best grades .
Medium grades .
Ordinary .
Cambria County —
Best Miller vein .
Cheaper grades .
Clearfield County —
Best grade .
Ordinary grades .
Indiana County —
Best grade .
Medium grade .
Maryland —
Georges Creek big vein.
West Virginia — -
Ordinary grades .
Best gas, ^-inch lump.
Best graae, run of mine
Gas slack .
F. O. B.
Harbor.
.$2.95
. . 2.60
. . 2.55
. . 3.00
. . 2.G0
. . 3.00
. . 2.50
. . 2.80
. . 2.50
3.15
2.40
2.65
2.65
F. O. B.
Mines.
$1.35
1.05
1.00
1.40
1.05
1.35
.95
1.25
.90
1.65
.75
1.10
.90
.50®. 70
New York Trade Briefs.
W. .V. Marsball, of W. A. Marshall & Co., No.
I Broadway, visited Boston on Wednesday.
J. W. Whiteley, of Whitney & Kemmerer, No.
143 Liberty street. New York, visited Boston on
Tuesday.
I'rederic Landstreet, general ea.stern sales
agent for the Punxsutawney Coal Mining Com¬
pany, with Philadelphia headquarters, was in
New York on Monday.
J. M. Creighton, the well known coal broker
of No, 1 Broadway, leaves today, Thursday, in
his eight-cylinder Cadillac for a trip to Meyers-
dale, in the Somerset county, Pennsylvania, coal
region.
Bids were opened on Wednesday, June 23, for
2,700 tons of egg coal by the fire department of
the city of New York. There were two bidders.
John F. Schmadeke, $6.10, and Wm. Farrell &
Sons, $6.17.
Newspaper cables on Tuesday stated that Mr,
D. A. Thomas, the Welsh coal king, has sailed
for .America to look after the munition interests
of the British government, and he is therefore
expected to arrive early in the coming week.
Some of the financial papers in New York on
Monday gave as a reason for some activity in
Reading stocks, that : “Reading had sold a large
quantity of anthracite for export.” It is need¬
less to saj; that such a rumor was without
foundation.
h'our of the lake steamers operated in the in¬
terest of the Erie Railroad Company, are said to
have been sold to the president of the Staten
island Shipbuilding Company and that they will
some time this fall be transferred from the lakes
to the -Atlantic.
J. M. Leonard, general sales manager of
Brothers Valley Coal Company, who went to
Cedar Point last week to attend the annual con¬
vention of the Alichigan-Ohio-Indiana Coal .As¬
sociation, visited several of the western offices of
his company before returning east.
diaries Heyl, representing J. Hudson & Co.,
coal importers and dealers at Bordeaux, is visit¬
ing in America. Mr. Heyl is inspecting numerous
coal handling appliances now in use in America,
with a view of finding something suitable for
bunkering and storing purposes at Bordeaux.
Governor Brumbaugh of Pennsylvania an¬
nounces that he has approved the bill increasing
the number of mine inspectors in the first
anthracite district from six to nine, and in the
second district from five to six. This measure
had the backing of the United Mine Workers
organization.
J. W. Searles, general sales manager of the
Pennsylvania Coal & Coke Corporation, No. 17
Battery Place, leaves on Saturday for a month’s
vacation. Mr. Searles will go with his family on
a trip up to the Great Lakes, returning to a
Canadian point where he will spend two or three
weeks in fishing.
.Archibald McNeil, Jr., and Kenneth McNeil,
of Archibald McNeil & Sons Company, whole¬
sale coal dealers of Bridgeport, Conn., and New
York, have acquired a controlling interest in the
Bridge fort Standard, a daily newspaper, the pur¬
chase price of which is said to exceed $110,000.
It is said that the McNeils now control three of
the four daily newspapers published in Bridge¬
port.
P. B. Heilner, vice-president of the Lehigh &
Wilkes-Barre Coal Company, has started on a
vacation trip, which will take in points of interest
through the west, terminating at San Francisco,
where he will view the exposition. On his return,
Mr. Heilner will go through the northwest. This
is his first vacation in four years, and he has
promised himself and friends that he will take
ample time to see all the points of interest from
coast to coast.
A recent issue of the Fayetteville (W. Va.)
Journal states that several large coal operators in
the New River and Kanawha field are said to be
concerned in a deal now pending, which it is be¬
lieved will mean the transfer of a lot of coal
lands in these two regions to an English syndi¬
cate. Interested in this deal are Frank B.
Enslow, a well known lawyer of Huntington, W.
Va., and \\’. H. Cunningham, a consulting engi¬
neer of the same place. Mr. Enslow was inter¬
ested in the proposition that was under in the
early part of 1914, known as the New Virginia
Syndicate, which at that time had up negotiations
for the sale of a lot of New River coal properties
to an English syndicate.
Due to the increase in its coal tonnage, the
Western Maryland Railroad for the fiscal year
ending June 30th, will report the largest annual
gross revenues in its history. The total receipts
from traffic will amount to $8,630,000, against
$8,267,000 last year, which until this year was
the company’s largest traffic. This record is said
to be due primarily to the new arrangement
made with the Consolidation Coal Company un¬
der which a part of that company’s coal traffic
is now carried by the Western Maryland. Since
the date of this agreement, traffic has steadily
been increasing in volume, and by the end of
June the company’s gross receipts will be more
than $360,000 ahead of the corresponding twelve
months last year. Of the year’s increase in gross,
nearly $300,000 will have been contributed by coal
traffic, so that it appears that in the last four
months the accession of this Consolidation Coal
Company traffic has amounted to nearly .$500,000
in the Western Mar.vland’s gross results. _ The
movement of coal and coke since the inception of
the new movement has shown an average increase
of about twenty-five per cent over the correspond¬
ing periods of last year. General merchandise
traffic also shows a substantial increase of eight¬
een per cent, both for the third week and for the
three weeks, but passenger receipts have declined
about a third as much as the general merchandise
receipts have increased. It is estimated that dur¬
ing the next fiscal year receipts from the Consoli¬
dation Coal Company’s traffic alone will add be¬
tween $1,800,000 and $2,000,000 to the railroad’s
revenue.
No. 1]
19
Philadelphia Trade.
Demand Is Increasing as Production Is
Curtailed — Piers Crowded
With Coal.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, July 1.
Within the last ten days all of the faith of coal
men in better prices and better market conditions
has strengthened. Here is a summary of the
new pegs on which their faith is pinned : The
federal employment bureau, in its report, says
that positions for 2,000 miners in West Virginia
remain unfilled; an abundance of war contracts
and sub-contracts have been let to eastern Penn¬
sylvania firms; thousands of miners have re¬
turned to their native lands to answer the call
of the war departments : railroad conditions show
that transportation is likely to be tied in a knot
about the middle of September. That is, demand
is increasing as production is curtailed.
As to the local trade’s actual record : Fair¬
mont slack has been cutting up didoes. The
market has a range from thirty-five to forty
cents and no strength shown. This is caused
by the operators of that section of West Vir.ginia
piling up shipments to the east and by the cement
mills cutting down on consumption to a ratio in
keeping vVith contract requirements. This market
will absorb only a normal amount of this size
and when too much is offered the stability in
price is bound to give way.
Once again the operators in western Pennsyl¬
vania have committed the indiscretion of piling
up their coal at the piers rather than have it lie
on mine sidings. Port Richmond is sadly
crowded with coal that has passed or is danger¬
ously near the demurrage point. Some high
grade Sqmerset and Clearfield coal has changed
ownership around eighty to eighty-five cents, a
concession of twenty-five to forty cents a ton, to
move it. And at that, concessions have not been
successful in all instances, and the railways are
collecting their toll.
Line business has been off color and the spot
market for these sales are practically nil. The
only outlet is for bunkerage purposes, and while
there has been considerable shipping taking coal
here, yet this will not' take near the surplus that
has been put on the piers.
Movement from the Reynoldsville and Punxsu-
tawney district has been mostly west and north,
with considerable coal going to Canada for
thresher purposes. Price ranges as quoted
are : Slack, eighty-five cents and up ; run of
mine, $1@1.25 ; smithing, $1.25, and screened
lump, $1.25 and up.
Greensburg is still moving in fairly heavy
quantity toward Baltimore for export, with the
range : $1.10 for run of mine and $1.20 for
screened.
Quotations on Somerset still are around $1.30
for best grades, $1.20 to $1.25 for medium grades
and 85c to 95c for ordinaries.
Not any change has been noted on Western
Maryland offerings and the quotations seventy-
five to eighty-five cents a ton stand.
Anthracite Situation.
July prices go into effect tomorrow, but
whether they can be maintained is another mat¬
ter. One thing is certain, and that is that the
companies are going to hold to them. For the
first couple of weeks in June the independents
accepted orders at May prices and there is con¬
siderable indication that the ten-cent rise in price
for July will be again a basis for order getting.
The following prices listed for July are plus
the state tax of 2^ per cent:
l-ump . $3.50
Steamboat . 3.50
Broken . 3. 30
Egg . 3.55
Stove . 3.80
Chestnut . 3.95
Pea . 2.50
Buckwheat . 1.50
While the quotations on pea coal are made at
$2.50, yet there have been concessions made by
the companies to a $2.10@2.25 range. Sales by
independents have been made even below this
figure. Steam sizes, buckwheat No. 2 and smaller,
have also been sold below listed prices. The
sizes that have been best taken and are leaders
in the anthracite market at the present time are
stove and egg.
Retail dealers are said to be shorter on coal
at the present time than for months. The rea¬
son, so runs the explanation, that cash sales only
will bring deliveries in July and August except
in rare cases.
THE BLACK DIAMOXD.
At the mines it is reported that three of the
companies have shut down for a week to ten
days from the first of July. The others and the
independents are working on short time. An
intimation is given that the report of the Bureau
of Anthracite Statistics will show quite a falling
off in production as a.gainst that of former years
for the month of June.
Philadephia Trade Notes.
Harry IMorgan of the Emerson & Morgan Coal
Company of Baltimore was a visitor early in
the week.
Walter P. Maguire of the Makoma Coal Com¬
pany of Harrisburg was one of the trade visitors
of the week.
Charles A. Owen of the Shade Creek Coal
Company, Johnstown, Pa., paid his respects to
local acquaintances in the trade this week.
Charles W. Mills of the Climax Coal Company
was west this week, his itinerary including a visit
to Cincinnati and other points.
W. E. Watson, Jr., of the Rosebud Fuel Com¬
pany of Fairmont, W. Va., was in this city this
week sizing up the eastern steam situation.
J. M. Green, secretary of the Spreckels Sugar
Refinery Company, and who is the “yes” man on
coal contracts, has returned to his desk after an
absence of a couple of weeks.
Plans and specifications have been prepared by
the Specialty Engineering Company for a coal
trestle 100 feet long to be built in steel, concrete
and wood for Isaac Nicholson of Germantown.
Frank M. Ramsey, Jr., of the Glen Brook Coal
Company was away this week on a business trip
west. While in Cincinnati he will call on his
brother-in-law, who is connected with the Island
Creek Sales Company forces in that city.
C. C. Gano of the Gano-Moore Company, who
has been in South America for four months, has
returned to Rio Janiero and, according to a letter
received this week, may return home in the next
six weeks.
C. P. Burtner of the C. P. Burtner Coal Com¬
pany of x41toona. Pa., was a business visitor. It
is understood that his business has expanded so
that he may arrange for an eastern office as an
outlet.
A. S. McQueen, Pittsburgh manager for B.
Nicoll & Co., and A. Kelly Rothstein were visit¬
ors at the local office of that company. Harry
Stauffer of the local staff returned from a ten-
day visit to Buffalo and Toronto.
H. B. Cornog of the Cortright Coal Company
was noted among the piscatorial experts who
tantalize the fish of Barne.gat Bay. He has taken
occasion to declare, however, that the imputation
that he caught 178 fish at one sitting is a pure
fabrication — nothing more — nothing less.
At the ripe old age of seventy-four, John W.
Moyer of Last Creek died at his home last week.
He had_ been employed in executive capacities in
anthracite mines the better part of his life. As
a contract miner in the early sixties, he was one
of the men who made history in the development
Considerable interest has been aroused through
the efforts of crude oil men to place their wares
on this market as a fuel commodity. Long term
contracts are being sought on the plea that boiler
room changes would be equalized through long¬
time rise of the product. It is known that three
large fuel consumers have seriously considered
the change and this is a reason why they have
not signed up their coal contracts.
The local newspapers have been offering some
dazzling figures from the coal minin.g sections
as to the number of men that have left these
sections to return to fight for their fatherland.
Mine owners are inclined to dispute the fi.gures
given and say that exaggeration has been shown
in more than one instance, and prove this by the
number of passengers carried on boats to foreign
ports.
Eastern Pennsylvania hankers have estimated
that the war in Europe has prevented miners in
the anthracite regions from shipping nearly $10,-
000,000 abroad during the past ten months. The
bulk of this money went to Italy, Russia, Greece,
Germany, Austria and the Balkan States in times
of peace. It is said that the miners in the regions
never were better supplied with money, despite
the short time they have work, than at present.
Provision has been made by the City Councils
for an appropriation of $80,000 for coal storage
equipment at the Queen Lane pumping station.
About eighty tons of coal a day are burned at
this plant and for years the station has been
living from hand to mouth as regards its coal
supply. The city has owned a piece of ground
for years on which it has been the intention to
place a yard that would have railway connection.
The new storage house will have a capacity of
about 3,000 tons.
Buffalo Trade.
Bui'f.vlo, N. Y., July 1. — (Special Correspond¬
ence.) Shipments of anthracite by lake for the
past week were on a heavy scale, amounting to
177,100 tons. The feature of these shipments is
the quantity of coal and the number of cargoes
now going to Duluth-Superior. Thirteen cargoes
were recorded for these two ports during the
week, or about as many as for all the other ports
combined. The shipments cleared as follows;
Duluth-Supenor, 90,100 tons; Chicago, 47,300;
:Milwaukee, 21,200; Fort William, 10,300; Port
V\ ashmgton, 1,200 ; Marinette, 1,000.
Anthracite trade is practically dead, so far as
retad demand is concerned and were it not for
the lake trade there would be little coal moving
in this territory. Dealers could dispose of more
coal in a good many cases if they are willing to
grant extended credit, but they prefer not to take
such action, finding collections slow as it is. A
dull period in the near future is being predicted.
Shippers of bituminous are beginning to report
a somewhat increased business, though trade is
not at all active and the improvement in condi¬
tions is so small as scarcely to be noticeable.
Concerns which have been taking three cars a
week are now' taking five in some instances, and
other concerns which have for a long time had
no need of coal are now placing orders for it.
But the supplies of coal coming to market are
Iarge,_ being increased beyond the needs of the
situation by the addition of a good deal of con¬
signment coal, shipped here by one or tw'o com¬
panies that make a practice of gambling on the
market and relying on the extra ability of sales
agents to sell the coal before it incurs demurrage
charges. The slack market is very weak, with
prices down to the lowest point in a good while.
Fair quality slack is said to be bringing for spot
shipment only fifty to sixty cents above the
freight rate, and some predict that the price w'ill
be lower before it is higher. Three-quarter coal
is also depressed in price.
Coal men see no immediate prospect of better
market conditions and expect prices to drag
along at the present low level for a number of
weeks. The lake trade is disappointingly quiet
and not much stir is to be looked for there until
another month or so. It is believed that by
August 1st conditions will be improved on the
lakes.
Buffalo Trade Briefs.
Among local wholesalers of coal lately in Pitts¬
burgh w'ere J. Bert Ross and J. W. Noble.
F. W. Buckalew, sales agent of Whitney &
Kemmerer, has returned from a two weeks’
wedding trip in the Adirondacks.
Francis Barrington, a former Philadelphian,
has taken a position as traveling salesman from
the Buffalo office of the Pittsburgh Coal Com¬
pany.
Francis H. McDonald, a Niagara Falls coal
dealer, is completing the erection of a concrete
elevator, which will have a capacity of about
1,800 tons.
H. K. Stauffer, representative of B. Nicoll &
Co., Pittsburgh, was a visitor to the coal trade
here last week. The company will not fill the
position left vacant by the death of its salesman,
A. IM. Brumaghim, it is said.
Mrs. Abbie H. Horton, wife of Col. Joseph H.
Horton, one of the veteran members of the Buf¬
falo coal trade, died suddenly at the family home
on June 27, aged seventy-one years. She had
been a resident of this city for thirty years and
was born at Worcester, Mass. She leaves a
daughter, Mrs. Grosvenor R. Trowbridge.
The county coal contract has been divided be¬
tween Spaulding & Spaulding, who get the peni¬
tentiary award of 2,500 tons, and C. A. and M.
Kaiser, who get the county home and hospital of
3, GOO tons. The coal was slack and the price is
equivalent to $1.85 on cars. The anthracite con¬
tract was dropped, the authorities concluding to
use coke instead.
Eugene C. Roberts, Jr., sailed this week from
Montreal for England as a lieutenant in the
British army, the only American ever to have
been given a commission. He expects to be in
the trenches in France within a month. While
superintendent of the Fairmont mines, Mr. Rob¬
erts was a deputy sheriff of the county and was
wounded in the face while attempting to arrest
a drunken miner.
20
THE BLACK HIA3IOM)
[July 3
New England Trade
Boston, July 1. — (Special Correspondence.) —
Retail dealers throughout New England report a
better demand for anthracite, which is the most
encouraging news the wholesale houses have re¬
ceived before in some time. The retailers, es¬
pecially those operating in Boston, have had
mighty hard going because of the indifference of
the public household demand. Almost every con¬
cern has had large numbers of horses idle, house
to house canvasses were made and consumers
were flooded with circulars giving reasons why
coal bins should be filled. The retail contract
market w'as shot to pieces, competition was so
keen, but since retail buying has improved con¬
tract prices have stiffened. The usual July 1 ad¬
vance of twenty-five cents per ton in retail
anthracite prices was not announced today, but
probably will be next iMonday.
The improvement in the household demand for
anthracite has been reflected in the wholesale
market, the all-rail buying being better. There
are, however, some spots where absolutely noth¬
ing can be done, notably Attleborough which has
suffered much through the depression in the
jewelry business. Cargo lots are sold every day
in Boston, but the all-rail business seems to hold
the center of the stage. At the moment there is
a scarcity of egg owing to deliveries on school
contracts, etc., all over the country. The local
market seems to be long on nut and pea, while
the demand for stove just about offsets the sup¬
ply. At iMystic Wharf, stove and egg have been
advanced ten cents per ton to $6.90 per ton on
cars, and nut to $6.2.‘S. Longside Boston Harbor
prices are now : Stove and egg, $5.65 ; nut, $5.90 ;
broken, $5..30(S;5.40 ; pea, $4.05 per ton. Buck¬
wheats are unchanged on a basis of $1.80 per ton
f. o. b. New' York for No. 3.
The local contract demand for New River,
Pocahontas and other bituminous continues to
improve. The Edison Company of Boston has
just closed a contract for 175,000 tons of New
River nut and slack. The price at which the coal
sold and the name of the seller has not been
made public as yet. A large tonnage of nut and
slack has been sold on contract throughout New
England, and in some quarters it is believed that
dealers will have difficulty in filling such orders
owing to the small available supply. Other large
soft coal contracts are still pending, and should
be announced within the near future. In the
meantime the average sized consumer is in the
market each day for reorders, and while some
houses are reported as cuttinsr prices, the average
dealer is holding firmly to the official price of
$2.85 f. o. b. Hampton Roads for New River
and Pocahontas.
Very little spot coal is offered at Mystic
Wharf, as practically everything coming forward
is on contract. The demand for spot New River
and Pocahontas at that point is still light, how¬
ever, and dealers in order to move lots have to
sell at $3.60 per ton on cars. It is almost impos¬
sible to get more than that price. Georges Creek
at Mystic is generally held at $3.90 to $4 per ton
on cars, but practically none has been sold since
last reports. The Boston Harbor bunker market
is unchanged on a basis of $4.65 per ton f. o. b.
on board and trimmed for New River and Poca¬
hontas. Pennsylvania bituminous continues
active and prices are unchanged on a basis of
eighty cents to $1.50 per ton on cars at the mines.
Some grades command more than $1.50 per ton,
but comparatively few of these coals are sold in
Boston.
Some scarcity of anthracite barge space is re¬
ported by shippers using other than big company
vessels. Anthracite rates remain unchanged,
however, on a basis of fifty to fifty-five cents
per ton from New York to Boston. The supply
of southern coal space just about offsets the de¬
mand and prices are unchanged at seventy-five to
eighty cents per ton from Hampton Roads to
Boston, and seven to ten cents a ton from Balti¬
more to Boston.
Masachusetts Gas Companies.
At a recent meeting of the trustees of the
Massachusetts Gas Companies, Edward Page was
elected vice-president of the New England Coal
& Coke Company. At the same meeting the Bos¬
ton Consolidated Gas Company declared a
quarterly dividend of two and one-half per cent,
as compared with two per cent for the same
period last year ; the Citizens Gas Company of
Quincy declared one per cent, against one and
one-quarter last year ; the East Boston Gas Com¬
pany, two and one-half and one per cent extra,
the same as last year, and the Newton & Water-
towm Gas Company, two and one-half against two
last year.
The New England Gas & Coke Company de¬
clared an annual dividend of three and one-half
per cent; last year the dividend was four and
one-half per cent. The New England Coal &.
Coke Company declared ten per cent and ten
per cent extra, against ten per cent and an extra
of thirty last year. The Federal Coal & Coke
Company declared fifteen per cent, against ten
last year, and the Boston Tow Boat, twelve,
against ten per cent last year. The J. B. B. Coal
Company didn’t pay a dividend this year; last
year it paid five per cent.
The net earnings of the subsidiary companies
for May compared favorably with those for the
same month last year, but unfavorably with
those for April, this year. The total net earn¬
ings for IMay were $230,759, as against $218,502
for the same month last year and $212,502 for
May, 1913. The total net earnings for the eleven
months ended May 31 were $2,422,218 ; for the
same period last year they were $2,332,997, and
in 1913 were $2,598,434.
Following are the net earnings of the coal de¬
partment for May and the eleven months ended
May 31 in detail, together with comparisons :
May—
1915
1914
1913
N. E. Gas & Coke .
$ 75,363
$ 66,268
N. E. Coal .
_ 66,543
40,733
57,074
Boston Tow .
_ 3,804
6,501
2,397
Federal Coal .
_ 10,292
4,124
2.655
Total .
$126,723
$118,395
Eleven mos. ended May 31 —
X. E. Gas & Coke....
$ 735,126 $ 754,727
X. E. Coal .
216,963
298,056
Federal Coal .
. . . . 99,090
63,157
19,8.50
Boston Tow .
_ 49,090
33,797
48,635
Total .
_ $963,320 $1,049,044
$1,121,268
Baltimore Trade.
Baltimore, July 1. — (Special Correspond¬
ence.) — With all ports records for foreign
movement smashed by the June record of ex¬
port cargo coal loaded here some Baltimore
coal men at least, who are sharing in this
immense business, have reason for congratu¬
lation. That the total will show more than
300,000 tons loaded here for export when the
official figures are announced is confidently
expected. The past week saw a movement
of nearly 80,000 tons for the six-day working
period. Many vessels are now afloat, also,
for coal loading here, and the past week saw
the announcement of another big batch of
charters, especially for Italian delivery. Pros¬
pects are, therefore, that the heavy trade will
continue some time at least.
Coal men who have recently returned from
trips to the mining regions of West Virginia,
western Maryland and Pennsylvania have
more or less conflicting stories to tell. On
the one hand is found reports that those mines
sharing in the output of export coal are work¬
ing quite heavily, and that others are profiting
by a growing call for fuel from the north¬
west, while on the other hand come stories
of continued low prices and offerings of fuel
at almost sacrificial rates at times. That
there is some betterment, however, is evident
from the fact that a number of mining prop¬
erties are reporting full time or increased
activity.
Times are quiet with the anthracite hand¬
lers here. There is little or nothing doing
along the line of steam sizes. Considerable
business is on the books, of course, but little
is developing just now. There is some little
call for smaller sizes, and some for storage
for next winter, but the bulk of the remain¬
ing demand to fill the situation here will not
develop for several weeks at least.
But little real change has come in soft coal
prices for the past three weeks. The rates
are about as follows:
F. O. B. F. O. B.
Fairmont — Mines. Baltimore.
Three-quarter . $0.85@ .95 $2.38@2.38
Run of mine . 76@ .80 2.18@2.23
Slack . 45@ .55 1.88@1.98
Somerset —
Best . 1.25 2.43
Good . 1.10 2.28
\V. M. R. R.—
Freeport . .80 1.9S
B. & O.—
Freeport
.80 1.98
P. R. R.—
Best South Fork
Miller Vein . . . .
Ordinal y .
1.40 2.58
1.15 2.83
.95@1.00 2.13@2.18
Baltimore Trade Notes.
The Maryland Coal Company mines at
Wendell, W. Va., are now reported working
full time.
The effect of heavy purchasing for export
is reflected in properties that are handling
product for that end of the trade. Elk Horn
Fuel Company stock is now very active, ap¬
parently partly on such prospects.
The demand by foreign carriers for bunker
use is growing steadily. Last week such ves¬
sels bought 13,248 tons.
The Davis Coal & Coke Company is re¬
modeling the old Barton mine near Franklin,
Md., preparatory to reopening the property.
It is understood that D. A. Thomas, English
coal magnate, now on his way to this side
as purchasing agent for the Allies, is to in¬
clude this city in his trip. When here before
he had several consultations with officials of
the Consolidation Coal Company.
Pilotage Rates at Mobile.
In order to place the port of Mobile on an
equal footing with competing ports on the At¬
lantic coast in the handling of bunker coal the
Mobile Bar Pilots’ Association have adopted
resolutions reducing the rates for vessels coming
into port only for coal to a sum equal to those
prevailing on the Atlantic coast, although the
service rendered is considerably greater. This
action is a development of the opening of the
Warrior river, making possible the establishment
of a cheap coaling depot at Mobile.
The resolutions adopted by the association fol¬
low :
Resolutions unanimously adopted by the board
of directors of Mobile Bay and Bar Pilots’ Asso¬
ciation on June 14, 1915:
“Whereas, The opening up of the Warrior river
to all year navigation by the completion of Lock
17 makes possible the establishment of a cheap
coaling depot at iMobile, a possibility which has
not heretofore existed ; and
Whereas, At competing ports on the Atlantic
coast, notably Norfolk, Va., pilotage rates on ves¬
sels taking only bunker coal are lower than the
ordinary pilotage rates ; and
“Whereas, It is the desire of this organization
to place IMobile on an equal footing with Nor¬
folk, insofar as concerns the handling of bunker
and cargo coal, although the pilotage here is
much longer than at Norfolk; therefore, be it
“Resolved, That the Alobile Bay and Bar Pi¬
lots’ Association does hereby reduce the pilotage
rates on vessels calling only for bunker coals and
on vessels substantially all of whose cargo is coal,
to the rates now applicable under the laws and
practice governing the Virginia ports with respect
to such vessels. It is the intent and purpose
hereof to place Mobile on exactly an equal foot¬
ing' with Norfolk and other Virginia ports inso¬
far as concerns the charge for pilotage on ships
calling for bunker coals and on ships whose
cargo is substantially all coal.
“Resolved further. That the officers of this
association do ascertain the exact rates applica¬
ble under the foregoining clause of this resolu¬
tion and take such steps as may be necessary to
put the same in force.
“Resolved further. That the president of this
association be, and he herebj' is, instructed to
take the steps necessary to present to the legisla¬
ture at its approaching session a bill or bills es¬
tablishing as a matter of law the pilotage rates
hereinabove authorized, and to that end that he
cause to be drawn appropriate bills, and have
the same presented to the senator and representa¬
tives from Mobile county.
“Resolved further. That this action be given
full publicity that all may know that this asso¬
ciation will do all that it can for the develop¬
ment of Mobile as a coaling port.’’
The state public utilities commission has de¬
nied the petition of the Victor-American and
nine other southern operators to intervene in the
order establishing lower coal rates from western
slope points, effective August 1st. The commis¬
sion will, however, hear the petition of the Colo¬
rado & Southern Railroad on July 13, maintain¬
ing that the same rates are confiscatory and un¬
warranted. The operators will, it is said, assist
the railroad in fighting the reduction.
One of the large concerns near Buffalo that
is busy with fillino' war orders is the American
Locomotive Company’s plant at Dunkirk. About
700 men are employed in the manufacture of
shrapnel and it is expected that this number will
be increased to 1,000. The Lackawanna Steel
Company is turning out steel billets for making
shrapnel and is said also to have an order for
6,000 tons of rails for the Cuban Railway.
Making a Bigger Profit by Buying Coal Properly.
Scientific or near scientific buying as a
source of profit for the retail coal dealers has
not been considered as seriously as it might
be. At least, there is still room for vast im¬
provement. It is the purpose of this article
to discuss this question and to suggest some
of the possibilities.
The first thing to do, of course, is to buy
something that will sell. The retailer does
not buy coal merely to fill his empty space.
He buys to satisfy a known or anticipated de¬
mand. He has, therefore, practically nothing
to do with the selection of the coals which he
is going to handle. This is predetermined by
the demands of his trade. Right there, the
question is raised: “How can a retailer know
what his trade wants?” I am going to answer
that question because it is the cause of so
much needless confusion.
Stores like Marshall Field & Co. have a way
of judging accurately the public taste. They
buy a small lot of a given kind of goods and
try them out. If the first lot moves rapidly,
a second is bought. The rule with such stores
is: “Small lots, small risk and quick turn¬
over or the abandonment of that line.”
However, Field & Co. and other such stores
must have a big assortment of goods. They
do not deal principally in those staples which
do not change from year to year; on the con¬
trary, practically everything they handle
changes with the styles. Therefore, they
must move cautiously on everything they
handle.
The Unchanging Coal Demand.
The retail coal merchant is in different busi¬
ness. The people do not follow the fashion
in coal. Rather, they stick to one kind for
years. It is said truly that the average house¬
holder is as firmly rooted to the kind of coal
he uses as he is to the location in which he
lives. Therefore, the problem of “feeling the
pulse of the trade” is not a difficult one for
the retail coal man. The only customers
about whom he should have any doubt are the
new ones or those who have moved but re¬
cently into his selling zone.
When to Buy.
With the major problem of “what to buy”
settled by the habits of the buyers, the next
question becomes “When shall I buy?” The
old truism in merchandising is to "buy low
and sell high.” The retail coal trade has con¬
verted this into: “Buy when you need it and
sell for pretty nearly anything your competi¬
tor suggests.” Between those two policies
there is room to sail the ship of state with
the royals and the spankers set. That is,
there is about all the room there is. One pol¬
icy gets some place that is definite. The other
policy heads no place at all and hence never
gets anywhere.
As a matter of fact, there is a time when
every coal is at the low water mark for the
year. There is anthracite, for example. It is
lowest in April and advances steadily until
September, when the price holds steady for
the winter. The time to buy anthracite is in
April and May.
Smokeless coal has two prices — summer
and winter. The lump and egg begins low in
April and moves up rapidly until July, when
it is at top figure. The time to buy it is in
April and May. At latest, it should be bought
in June. The mine run stays at one price
from April to August. This coal can be
bought in July, under present conditions, to
best advantage.
The point in consideration here is: The re¬
tailer wants to buy his coal at the lowest price
and yet carry it the least possible time l)cfore
he sells it again. Thus he gets the lowest
price on anthracite and on smokeless pre¬
pared coal by buying in April and May and by
holding it until October or November. But
*Of the O’Gara Coal Co.
By E. H. Irwin,*
Buying Low, Selling High, and Playing
for a Quick Turnover Gives an Oppor¬
tunity to Turn a Losing Business Into a
Profit.
since the smokeless mine run does not change
price in four months, the best possible policy
is to buy it in the last month of the low
price — July — and thus have the minimum hold
or until October and November.
Buying Bituminous Coal.
Bituminous coal presents another problem.
It has no regular schedule of prices. It is al¬
together a hit and miss proposition. Under
ordinary circumstances, the supply is always
greater than any possilde demand. The only
things that cause its prices to change are
some present disruption of conditions or
some expected disruption.
While that is true, it also is a fact that these
actual or expected disruptions come around
with remarkable regularity. One or the other
gives some strength to the bituminous trade
at certain periods 'each year. Thus there is
nearly as much regularity to the bituminous
coal seasons as there is to those of any other
kinds of coal.
Experience proves, in fact, that the lowest
prices on bituminous coal are quoted in June,
July and the first half of August. The time,
then, to buy bituminous coal at the lowest
price is in those months. However, there is
a secondary period of inaction in bituminous
coal. A survey of the market for the last
twenty-five years shows that a period of low
prices comes regularly in December. Al¬
ways it lasts for fifteen days. Sometimes it
lasts longer.
Therefore, the program of the progressive
retailer should be to buy enough bituminous
in summer to carry him through until
December and to buy enough in December to
carry him through until March. The buying
period — or the one when prices are lowest — in
l)ituminous coal is thus split into two sections.
This presents a striking fact. The retailer
can get, in the off season, a lower price on his
bituminous coal than on any other. He can
carry it a shorter period before he gets a
“turn over” than he can any other. He can,
when he has had the “turn over,” renew his
supply at bargain prices. Thus a retailer can
buy bituminous to better advantage than any
other kind of coal.
Matters of Policy.
There are several reasons why this early
purchasing is advisable, aside from the (|ues-
tion of making a bigger profit.
First. Relatively only a few of the i)etter
retailers can buy ahead of time. The others
have not the money to pay cash nor the stand¬
ing that would give them credit. The better
dealer thus gets an edge on his competitor.
Second. Cars are always shortest at the
time when the movement of coal to the house¬
holder is heaviest. The fact of the heavy
movement from mines to yards explains this
in part. The fact that farm produce is mov¬
ing at that time explains it in another part.
The fact that the railroads “borrow” and do
not return more cars at that time than any
other is still another good reason. By hav¬
ing a supply on hand, the retailer avoids the
annoyances and dangers of a car shortage.
Coal shipped during the summer months ar¬
rives in much better condition and can be
handled more economically than later when it
is liable to be filled with snow or frozen solid
in the car, and there is not the danger of
pilfering in July that there is in zero weather.
Third. Ordering the coal early assures that
it will be on hand when the demand is the big¬
gest. It assures that the retailer will have
something to sell when the buyers want it.
These three considerations decide that it
will be “good policy” for the retailer to buy
his coal early. This, of course, provided that
he has the money with which to pay for it
and the space in which to store it.
Measuring the Profit.
But, these things, important as they are, do
not decide that the dealer is going to make
money out of the coal that he buys early.
That is one question to which careful atten¬
tion must be given.
In the territory embracing the middle west¬
ern states, it is conservative and perhaps fair
to say that the average cost of western bi¬
tuminous coal to the retailer is $4.00 a ton.
In the months of June, July and part of
August, this coal can be had for at least sev¬
enty-five cents a ton less than the fall price.
Thus the dealer by buying in the low-priced
months can save at least twenty per cent of
the purchase price of his coal. Twenty per
cent would be a big profit on money invested
in coal if the investment were carried a year.
But it is not carried, on the average, more
than four months. To get the yearly interest
rate, we have to multiply the 20 per cent by
three, which makes sixty per- cent.
The return on the money invested in
bituminous coal is larger than in any other
for two reasons:
First. The summer discount on bituminous
coal per ton is larger than on any other.
Second. The money is tied up a shorter
time than is the case on any other grade of
coal.
What is true of bituminous coal is true, in
a measure, of semi-bituminous or smokeless
and anthracite. The possible saving on
anthracite is fifty cents a ton. The average
selling price to the retailer in the middle
western states is $7.50. Therefore, if he saves
fifty cents a ton, he makes a saving of ap¬
proximately seven per cent. I venture to say
that this is more than the average retailer
makes yearly on the money tied up in his
business. I know of one good retailer, located
in a prosperous territory, who has earned for
four or five years only one and one-half per
cent.
However, the retailer makes this seven jier
cent for the time that his money is tied up.
We will say that he buys his anthracite in
April and delivers it in October. He has held
the coal for six months and, therefore, the
saving is not seven per cent but fourteen.
There is no coal retailer of whom I know who
makes fourteen per cent on his money.
My estimate is that the average cost of
smokeless lump and egg coal to the dealer, in
the territory here under consideration, is $5.50
a ton. By buying this coal in April or May,
he can save anywhere from forty to sixty-five
cents a ton. We will say, on the average, that
he can save lifty cents a ton. That is about
nine per cent on his money. At the outside,
he will have to carry this coal only six months,
so tliat the nine per cent in six months be¬
comes eighteen per cent on an annual basis.
There is no retailer of whom I know who can
make eighteen per cent in any other way — at
least out of the retail coal luisiness.
The average cost of smokeless mine run is,
in the territory under consideration, probably
$4.50. The saving which it is possible to make
on this coal is fifteen cents a ton or twenty-
five cents a ton at the outside. The saving to
be made on this coal is, therefore, about six
per cent. However, if the retailer does not
i)uy this coal until July and moves it out of his
yard in October, he is carrying the coal only
three months, 'I'hercfore, he gets six per cent
for three month.s, or, on the average, about
(Concluded on page 29.)
22
THE BLACK DIAMOND
[July 10
Exact Figures Turn Expected Profit to Loss.
Two months ago, Ed Klinenberg of the
Peoples Fuel & Supply Company of Chicago,
would have taken oath that he was making
money out of his retail anthracite business.
He had a margin between his selling price
and his cost of coal which he was sure would
far more than cover every cent of expense.
Also he had reason to believe that by virtue
of a given arrangement, he could make a
profit twenty-five cents a ton larger than that
which most retailers get.
But,- to make doubly sure, he called in an
auditor who went over the records carefully
placed upon his books. This auditor charged
against the cost of doing business every cent
of expense that had been entailed. When this
had been done, instead of making a good
profit on anthracite and twenty-five cents be¬
sides, Mr. Klinenberg found that he had
thrown away his twenty-five cent advantage
and, in addition, had lost one and one-half
cents a ton.
This means, when applied to the retail busi¬
ness generally, that some dealers think they
are making money on anthracite while charg¬
ing current prices. Instead, they are losing
from twenty-five to thirty cents a ton.
The same thing applies to other grades of
coal, of course. It is true that, in other de¬
partments, Mr. Klinenberg did not lose
money. But it is also true that he did not
make anything like the amount that he sup¬
posed he was making. The facts in the case,
when actually revealed by the auditor’s state¬
ment, were astounding.
Now Mr. Klinenberg permits the printing
of the auditor’s report to him, not because he
cares to disclose the private affairs of his own
businqss but because he wants to impress upon
the other retail dealers that they do not know
how they stand. He is candid to show that
they are not making the money they think
they are unless they have accurate accounting
and unless they employ an auditor now and
then to go over their books.
The statement made to Mr. Klinenberg by
Frank J. Ross, public auditor and accountant,
is as follows:
“In accordance with your request I have
compiled a statement of the business trans¬
acted by your company for the year ended
March 31, 1915, showing in detail the selling-
price, cost of sales, gross profit, expense, and
net profit or loss per ton of the various com¬
modities handled during the year.
“The sales tonnage used as a basis for com-
l)iling this statement is summarized as fol¬
lows :
Tons.
Anthracite sales . 7,102
Bituminous sales . 9,508
Wholesale coal sales . 4,362
Ice sales . 10,700
Miscellaneous sales . 434
Total sales tonnage . 33,106i/$
Anthracite Coal.
“The anthracite coal business transacted for
the year shows that 7,102 tons of coal was sold
at a net loss of about one and four-fifths cents
per ton, making a net loss for the year of
$152.92.
.5nthracite sales (7,102 tons) . $52,475.34
Cost of coal . 48,240.51
Gross profit on sales . $ 4,234.83
Special consideration . 1,874.26
Gross profit on trading . $0,109.09
Operating expense . 2,484.79
Selling expense . 703.14
Office and miscellaneous expense . 3,074.08
Total expenses on anthracite . 6,262.01
Net loss on anthracite . $ 152.92
Sales price, per ton . $7,38 4/5
Cost of coal, per ton . 6.79 1/5
Gross profit, per ton . 59 3/5
Special consideration, per ton . 26 2/5
Gross profit on trading, per ton . 86
Operating expense, per ton . 35
Selling expense, per ton . 09 4/5
Miscellaneous expense, per ton . 43
Total expenses, per ton . 87 4/5
Net loss, per ton . 01 4 . '5
Bituminous Coal.
“The net profits on the bituminous coal sales
of 9,508 tons amount to $4,020.80, a net earning
of about forty-two and four-fifths cents per
ton. The net profits on the bituminous coal
sales are eighty-five per cent of the total net
profits on the trading done for the year. The
following is a brief summary of the bituminous
coal business transacted:
Bituminous coal sales (tonnage. 9,508) .$43,499.73
Cost of coal . 31,379.34
Gross profit on sales . $12,120.39
Allowances and discounts . 296.32
Gross profit on trading . $12,416.71
Operating expense . 3,335,71
Selling expense . 942.23
Office and miscellaneous expenses . 4,117.97
Total expenses on bituminous _ 8,395.91
Net profit on bituminous . $4,020.80
Sales price, per ton . $4.67^
Cost of coal, per ton . 3.30
Gross profit, per ton . 1.27J4
Discounts, per ton . 03
Gross profit on trading, per ton of bituminous.,. I.3014
Operating expense, per ton . 35
Selling expense, per ton . 09 4/5
Miscellaneous expenses, per ton . 43
Total expenses, per ton . 87 4/5
Net profit, per ton . 42 4/5
“The ice business transacted for the year
ended March 31, 1915, shows that 10,700 tons
of ice were sold at a net profit of about one
and two-fifths cents per ton, amounting to a
net profit of $114.29. The attached schedule
shows that the operating expense on the ice
sales is two cents greater than on coal sales.
The following summary briefly sets forth the
ice business transacted:
Ice sales (tonnage, 10,700) . $31,800.48
Cost of ice . 22,670.53
Gross profit on sales . $ 9,129.95
Allowances and discounts . 629.69
Gross profit on trading . $9,759.64
Operating expense . 3,952.75
Selling expense . 1,059.42
Office and miscellaneous expenses. . . . 4,633.18
Total expenses on ice . 9,645.35
Net profits on ice . $ 114.29
Sales pffee, per ton . $2.97 1/5
Cost price, per ton . 2.12
Gross profit, per ton . 85 1/5
Discounts, per ton . 05 4/5
Gross profit on trading, per ton . 91 1/5
Operating expense, per ton . 37
Selling expense, per ton . 09 4/5
Office and miscellaneous expenses, per ton . 43
Total expenses, per ton . 89 4/5
Net profit, per ton . 01 2/5
“The wholesale coal business is not treated
here because it is not germane. The report
continues:
At the convention at Wilmington of the Penn¬
sylvania Retail Coal Merchants’ Association,
Charles Enzian, mining engineer of the Bureau
of Mines, delivered an address on anthracite in
connection with the presentation of the moving
pictures of the mines.
Part of it was explanatory of the pictures pre¬
sented, but the forepart of it had to do with the
statistics of the anthracite trade. These are
grouped in a way that is not common. What he
had to say on that phase of the subject was as
follows :
“The history of the discovery of anthracite no
doubt is familiar to every one connected with
the industry. The Indian tribes of the Wyoming
and Lackawanna Valleys had discovered the ex¬
istence of “stone coal” many years before that
region first attracted _ the attention of the white
settlers. A narrative history of the region, the
development of the first mine, the formation of
the first company, the building of canals and
railroads and many other changes brought about
by the industry that has become of such tremen¬
dous importance to the prosperity of northeastern
Pennsylvania and of the nation, abounds in
epochs of absorbing interest.
“Illustrative of the economical importance of
the anthracite mining industry, I quote from
statistics compiled by Mr. E. W. Parker, statis¬
tician of the United States Geological Survey.
During 1913 the total production of coal in the
United States was 570,000,000 tons ; of this total
production, 91,500,000 tons were anthracite — about
one-sixth of the hulk. The total value of all the
coal mined in the country duripg the' same year
was $760,000,000 ; of this value anthracite repre¬
sents $195,000,000, or more than one-fourth of the
total. Since 1807 there has been mined 7,398,000,-
()()() tons of bituminous and 2,447,000,000 tons of
anthracite. On a comparative basis, using the aver¬
age value for 1913, it will be noted that anthra¬
cite represents sixty per cent of the value of all
the coal mined in the United States, which at the
end of 1913 reached the enormous quantity of
Miscellaneous Sales.
“The miscellaneous sale of coke, hay, oats,
corn, and wood show that on a sales tonnage
of 434p2 tons a net profit of $551.66 was
realized, averaging a net profit of $1.22 1/5
per ton as shown in the following summary:
Miscellaneous sales (tonnage, 43454) ... .$5,342.24
Cost of miscellaneous merchandise . 4,584.22
Gross profit on sales . $ 758.02
Allowances and discounts . 95.76
Gross profits on trading . $853.78
Operating expense . 78.65
Selling expense . 38.48
Office and miscellaneous expenses . 184.99
Total expenses on miscellaneous . 302.12
Net profits on miscellaneous.... $551.66
Selling price, per ton . $12,29 2/5
Cost price, per ton . 10.55
Gross profit, per ton . 1.74 2/5
Discounts, per ton . 19
Gross profit on trading, per ton . 1.93 1/5
Operating expense, per ton . is 1/5
Selling expense, per ton . 09 4/5
Miscellaneous expenses, per ton . 43
Total expenses, per ton . 71
Net profits, per ton . 1.22 1/5
“The total sales tonnage handled during the
year was 32,106^ tons, the average selling
price of same being $4.37 4/5 per ton, or
$140,557.97, the cost price of same being
fifty-three and four-fifths cents per ton, creat¬
ing an average gross profit on the sales of
about eighty-four cents, or $26,981.65. The
allowances and discounts on this sales tonnage
of 32,106^ tons was nine cents per ton or
$2,896.03, which added to the gross profit on
the sales, makes the gross profit on trading
ninety-three cents per ton or $29,877.68.
“The operating expense on the sales tonnage
averaged thirty and four-fifths cents per ton or
$9,857.92. The selling expen'se averaged eight
and one-half cents per ton or $2,743.27, and
the office and miscellaneous overhead expense
averaged thirty-nine cents or $12,542.04, mak¬
ing the average total expense per sales ton of
seventy-eight and two-fifths cents or $25,143.23.
“The average gross profit on trading being
ninety-three cents per ton or $29,877.68, and
the average total expense being seventy-two
and two-fifths cents per ton, or $25,143.23,
making the net (clear) profit of fourteen and
three-fifths cents per sales ton, or $4,734.45
net profit on trading for the year.”
9,844,000,000 tons. It may be of further interest
to note that in 1913, which is perhaps a rep¬
resentative year, the State of Pennsylvania had a
total production of over 265,000,000 tons, anthra-
ciate and bituminous combined, or forty-six per
cent of the coal mined in the United States. It is
estimated that in 1913 the United States produced
39.5 per cent of the world’s production of coal.
“Sales organizations bear an important relation
to the economical mining and the perpetuation of
a national resource, not inexhaustible and never
to be replenished when the present deposits have
been depleted. In this movement the Federal
Bureau of Mines, with the limited funds appro-
prited for its work, has taken a deep interest
during its five years existence, and through the
splendid co-operation of the miners and operators
has accomplished most gratifying results. The
bureau is most vitally interested in the safe¬
guarding of the lives of the mine workers, and
from investigations and experiments has been
able to render a most helpful service to the public
and the nation.”
Up to June 6th a total of $4,000,000 in tolls
was collected for the use of the Panama
Canal since the opening of the canal last fall.
During April the tolls for the first time were
greater than the cost of operating and mainte¬
nance of the canal by $84,102, a total for the
month being $442,415, and the cost of opera¬
tion $358,303. The cost of operation was less
in April than in any month since the opening
of the canal. The reduction in operating ex¬
penses was due largely to diminished dredg¬
ing operations.
E. D. Carr, at one time sales manager of the
old Columbus & Hocking Coal & Iron Company,
and afterwards connected with several local coal
concerns, has taken a position as assistant sales
manager of the Hickory Ash Coal Company,
Wellston, Ohio. For a year or more past he has
been in another line of business.
Some Figures on Anthracite Output.
No. 2]
THE BLACK DIAMOND
23
The Coal Company’s Trouble Man.
Philadelphia, May 13. — {Special Correspond¬
ence.) — In the clays when the electric light plants
were in their infancy a set of men found new
jobs. They were “trouble shooters.” Their labor
was to get to places of trouble “just as quick as
the Lord would let ’em.”
One of the new things connected with coal
sales is a “trouble shooter.” The particular
“trouble shooter” who inspires this article has
been in the employ of a West Virginia coal
company for over a quarter of a century. An
officer of his company told the writer that, con¬
servatively, he had saved them the loss of thou¬
sands of dollars worth of business every year.
“Not alone that,” this man continued, “but he
has saved the blame that might fall on other
shoulders from carrying a sting.”
This man knows coal. He delved into the
bowels of the earth for it for years. Afterward
he fired the boilers at the company’s plant. His
was the school of hard knocks. All kinds of
conditions were met in gaining the greatest en¬
ergy from the coal. He was observant and he
remembered what he observed.
There came a time when a big contract that
was held by his company was in danger because
the coal was not coming up to the point of effi¬
ciency that had been guaranteed in the contract.
The sales force was at its wits’ end to know
where and why the coal was failing in its task.
One of the heads of this organization is a
man that knows a thousand and one of his em¬
ployes. He declared that if anyone could find
where the coal was “falling down,” our friend
at the boilers could.
He took the man away from the boilers and
told him exactly the situation confronting the
company and proposed that he should ferret out
the “monkey wrench that was disturbing the
machinery.” His report was :
“Well, I guess you won’t have any more trou¬
ble with that coal. I found that the drafts were
clogged up and there wasn’t enough suction
behind the boilers to draw milk out of a baby’s
bottle. We rigged it up so as to give her about
two inches more leeway and you ought to have
seen the steam hitting the high spots on the
gauge.”
A complete report of examination and deduc¬
tion by an efficiency engineer would have dwelt
on a dozen and one things that this “trouble
shooter” found. But his way of expressing it
was to tell of the great condition and smooth
out the little ones without comment. ■ Today the
owner of the self-same plant where the “trouble
shooter” made his debut into his own particu¬
lar line of work would gladly pay his expenses
and a goodly “bit” beside whenever the boiler
room efficiency is falling below what he reckons
to be right.
The coal company does a considerable amount
of business in the southern states. Here, where
the retailers are not as numerous as in the
north, the business is done direct with corpora¬
tions requiring coal. Here also is found the
lower strata of boiler room men. To use one
man’s expression : “In the north the fireman
considers his work as employment ; in the south
it is only — a job.”
One day a long letter came from a cotton fac¬
tory declaring that of all the coals that this plant
had used in years, that on supply and from the
beginning of the season was the worst ever.
By this time the “trouble shooter” had been
“on the job” for several trips and he was dis¬
patched to the scene of complaint. Here was
a pretty pickle. The coal looked good and was
good. All things about the boiler room section
of the plant looked to be up to the mark, well
kept and better than the ordinary. It took a
day or two and finally the test that the old mine
fireman applied worked out.
The flues of the plant were so corroded and
stuffed with soot that it was a wonder that any
fire below would burn red.
Here was another case from the south that
he straightened out. This time it was reported
that the coal was running “good and bad.” The
trouble shooter spent three or four days about
the plant in question and finally there came a
morning when the steam was surely insufficient
to drive the load of machinery that it was sup¬
posed to. Another morning and a like condi¬
tion. Then Mr. Trouble Shooter went sleuth¬
ing. He found that the steam on these two
mornings had been turned into a huge dye vat
and over half the generation was being side¬
tracked to that department of the works instead
of running the machinery, as had been expected.
It was not the coal ; it was expecting the im¬
possible.
So much for the mechanical side of this man’s
employment. His labors do not cease there. A
demand came for the cancellation of a con¬
tract from a southern mill one year with no
explanation. Off our friend was started to the
scene of action. The trouble again was that
the coal was below the grade that had been rep¬
resented.
A visit to the engine room of the plant put
him on the scent of “what was what” right
away. The stuff that was being run upon the
grates in the fire box certainly was not the run
of mine coal that had been shipped from the
rnines of the company for which he worked. He
pinned the superintendent of the plant clown to
fact and elicited the information that coal was
being screened and the large pieces were being
sold to the employes at regular retail rates. The
superintendent was surprised beyond measure
when he learned that the fine coal placed under
the boilers was_ burning in the natural manner
of fine coal without giving the heat efficiency
that he wanted.
Numerous cases he has run to ground where
he has been called upon to show that a piece of
slate picked out from a car of coal did not at
all represent decent grounds for a kick. One
occasion was the receipt of several bricks that
one buyer found in his coal. He wanted to
know if the coal company “had taken the means
of loading a car with broken brick to cheat him
out of coal.” He was a much surprised busi¬
ness man to know that the object of his com¬
plaint had been used by a lot of boys in his
own home town as missiles with which to peg
coal cars.
All coal men have “kicks” coming in daily and
some of these above may sound like some of
their own. The outstanding difference, however,
is that the selling force of the coal company re¬
ferred to believe that a satisfied customer is an
One of the mooted legal questions of the day
is the legality of the present campaign to tax
all manner of premium schemes out of existence.
Readers of trade papers know that this campaign
has broken out in various States of the Union,
and is now being vigorously waged.
It takes either of two forms. The first is such
a law as Colorado has just passed, flatly for¬
bidding all manner of gift enterprises, and the
second is a law making everybody who sells or
uses trading stamps and other premium devices
pay a tax so high that nobody can afford to re¬
main in the business. Such a bill is pending in
Pennsylvania. It would compel trading stamp
companies to pay a license of $2,000, and retailers
who distribute the stamps to pay $500. In New
York State the attack takes even a third form —
that of a proposed law forbidding all sorts of
coupon schemes except trading stamps.
In some states prohibitory or regulatory laws
have already been passed and are waiting tests
as to their constitutionality. In other states such
laws undoubtedly will be passed, and it is prob¬
able that the coming year will see the whole
premium question thrown into the courts for
decision as to whether premiums have a right
to live.
Can laws be passed which will make premium
schemes illegal? Or can premium schemes be
gotten rid of by imposing sUch a high license
tax that nobody can pay it? My own opinion
is that the courts will finally answer both of
these questions in the negative. In the present
state of the law in most states, a Legislature
can impose some tax on the premium business
or any phase of it, but it cannot destroy it under
pretense of taxing it. Only on one ground can
premium schemes (which includes trading
stamps) be either forbidden or taxed so high as
to be destroyed, and that is on the ground that
they are detrimental to the public. Here is
almost all of the law on the subject in a nutshell :
“In regard to certain forms of business which
are inherently harmful and dangerous to society,
the Le.gislature may either enact statutes which
are directly prohibitory, or may accomplish the
same and indirectly by requiring a license fee
so high as to amount to a prohibition of the
business. But useful occupations which are not
detrimental to the public cannot be unduly re¬
stricted or substantially prohibited under the
guise of police regulation.”
In other words, if the trading stamp scheme
asset and that every complaint should be in¬
vestigated and cared for if the business is “to be
held.”
Is_ it possible then to improve on the system
outlined in this case? My informant offered an
answer in a shape that may cause comment.
“There will be a new addition to the selling
force of big coal companies one of these days in
the form of an efficiency engineer. In our case we
have followed up the question from the obverse
angle. We have waited for a complaint before
we took action. In other words, we have as¬
sumed that all plants are up to the mark unless
we get a complaint. It is on a par with believ¬
ing a man innocent until he is proved guilty.
“I really believe that were coal not as cheap
as sand — cheaper in some instances — and we had
to pay the price for it that the folks in Italy
do today, we would find manufacturers and cor¬
porations paying more attention to their boiler
rooms. Instead of that, they fish around for
some coal ‘they like better,’ or some coal ‘that
suits our purpose better,’ without taking a peep
at their own local conditions that may be re¬
tarding efficiency.
“Why not, then, if they place the burden on
the coal man and demand that he should show
them wherein they err, have a man thoroughly
expert and fully equipped to find the cause of
the buyers’ dissatisfaction?
“It is a trade or a profession wherein a man
to handle it, I will admit, must be born and not
made. I have told you about our man. He is as
plain as an old shoe. He is probably the last
man you would pick out of a crowd. Rut he
sure does know coal and boilers, firing and fire¬
men.
“Were we looking for a man to fill his shoes
tomorrow, it would not be the book-read stu¬
dent, nor perhaps the efficiency engineer, but one
of his kind, a mine fireman with brains. And
you can say for me that I believe that there
is a greater field than some of the firemen at
the mines know of lying right before them if
they only knew it.”
and other premium schemes are “inherently
harmful and dangerous,” any Legislature can
destroy them instantly and directly, or give them
their quietus by a prohibitive tax. If they are
not “inherently harmful and dangerous,” then
laws imposing high taxes or directly prohibiting
them are unconstitutional and will be thrown
out by the courts as fast as they come up.
The Supreme Court of the United States,
which will have to say in the end whether pre¬
mium schemes are “inherently harmful and dan¬
gerous,” has never expressed itself on the subject
as yet. Many states, however, have done so, the
large majority deciding in favor of the premiums.
Ore.gon not long ago passed a law taxing people
Using trading stamps $5,000 per year, and the
court upheld it. In effect this was a decision
that premium schemes were “inherently harmful
and dangerous,” and that on that ground the
Legislature could destroy them. This case is
to be taken to the United States Supreme Court,
which will probably decide the question once
and for all.
There was also the state of Arkansas, in which
state there is legislation taxing everybody using
gift enterprises $1,000 and everybody patroniz¬
ing them $500. This legislation was also upheld
by the United States Circuit Court for that dis¬
trict and the tax stood. This, too, is practically
a decision that gift enterprises, which in Arkan¬
sas means trading stamps because the law says
so, are “inherently harmful and dangerous.”
On the other hand, something like twenty-four
states, if I remember ri.ghtly, have decided that
premium schemes, particularly trading stamps,
were not “inherently harmful and dangerous,”
and could therefore neither be prohibited nor
destroyed by high taxes. What the United States
Supreme Court will say is, of course, a question,
but if it follows what is unquestionably the weight
of judicial authority in this country today, it
will decide that premium schemes are not “in¬
herently harmful and dangerous.”
(Copyright, May, 19/3, by Elton J. Buckley.)
L. C. Sabin, general superintendent of the
canals at Salt St. Marie, in a report on .A.pril
traffic through both the I’nitetl States and
Canadian locks, shows that the west bound
movement of coal in short tons was: An¬
thracite, U. S. Canal, 121,652: Canadian canal
8,459: total 130,111. Bituminous coal, U. S.
canal 149,455.
Taxing Premium Plans Out of Existence.
24
Tin: IILA( K DIAMOND
[July 10
The Inside Story of How the “Little Giant” Won.*
The members of the Chicago Coal .Merchants
Association highly apiJreciatc the opportunity you
have accorded me, as their commissioner, to de¬
liver their message to you. They are proud of
their association, and welcome opportunities to
tell of its work.
The message entrusted to me is extremely
short, hut its brevity does not detract from its
importance ; it is the one word “Co-operate.”
h'or many years Chicago has had a coal associ¬
ation. The present organization was formed in
June, U)()(). Immediately prior to that time there
existed what was known as the Track Dealers
.■\ssociation, which, as its name implied, only
accepted as members coal merchants who had
track connections.
The Chicago Coal Dealers .Association, now the
Chicago Coal Merchants Association, was formed
to replace it, and founded on broader lines, it
accepting as members any individual, firm or cor¬
poration having an established office, doing a reg¬
ular wholesale or retail fuel business, or en¬
gaged in the production, jobbing, shipping or
mining of fuel. The important point in broad¬
ening the scope of oi)eration was admitting the
wholesale trade as members. It was recognized,
even as long ago as 1908, that an organization
with both branches of the trade as members,
should be able to accomplish more (and that more
speedily) than two separate organizations.
We have today committees composed of mem¬
bers engaged in both branches of the trade, who
are working on matters pertaining strictly to
one branch, giving their time cheerfully. The
intimate business relations and personal friend¬
ships resulting from these committee meetings
are worth the time spent, even if the object of
the committee is not attained. Co-operation of
this sort pays.
Our association is confined in its direct opera¬
tions to Chicago, and its suburbs, differing from
your organization only in the amount of terri¬
tory covered. One great advantage we have over
associations like yours is our ability to get to¬
gether frecpiently.
Our regular meetings are held on the second
and fourth Tuesdays of each month. The direct¬
ors meet monthly, and our committee meetings
will average better than two per week. We arc
in constant touch with all members by telephone.
The result of this close communication keeps an
office force of four busy.
Stopping Short Weights.
The first thing that was done in our present
organization was to incorporate in its by-laws an
article that no action could be taken as an associ¬
ation contrary to federal or state statute or
municipal ordinance.
During the lapse of time between the demise
of the Track Dealers Association and the birth
of the Chicago Coal Merchants .Association con¬
ditions became almost intolerable for the honest
dealer. The standard table of weights was en¬
tirely overlooked by a sufficient number of the
trade so that it was almost impossible for a repu¬
table concern delivering 2,000 pounds of coal to
the ton to e.xist.
The association took steps to have an ordi¬
nance i)assed permitting the city sealer to stop
wagons on the streets, take the delivery ticket
from the driver, reweigh the load on an adjacent
scale, accompany the driver to delivery point, and
then reweigh the wagon light on the same scale.
If a discrepancy was located the owner of the
wagon was required to report to the city sealer.
The ordinance provides for a fine of twenty-five
to two hundred dollars for violations.
To assist the city sealer’s department the asso¬
ciation, for a number of years, paid an inspector
to work jointly with the deputy weighman.
b'or the first few months after the ordinance
became effective convictions were (luite numer¬
ous, but when on the second and tliird offense,
these dishonest dealers were lined the limit of
two hundred dollars, they began to realize that
the ordinance was to be enforced, and changed
their business methods, and today the eity is com¬
paratively free from the short-weighting evil.
Collecting Bad Accounts.
The next evil that we started in to correct was
to reduce the enormous losses to members
through bad accounts. This matter was started
’Part of an address before the Canadian Retail Coal
Dealers’ Association at Huffalo.
tCommissioner of the Chicago Coal Merchants’ Asso¬
ciation, Chicago.
By N. H. Kendall. t
The Commissioner of the Chicago Coal
Merchants Association Tells the Ca¬
nadians How His Organization Got Its
Start.
in a small way. The system has been growing
ever since, and from May 1, 1908, to Alay .'il,
19 1."), there has been collected, through our Col¬
lection Department, $145,595.79.
The greatest benefit from this department is
the data which has been collected, and is now in
our office for the benefit of members. Our mem¬
bers are supplied with a book containing about
15,000 names, which was issued a year ago, it
being the third issue of this credit data. In addi¬
tion they receive monthly lists, containing all in¬
formation that has come to our notice during
the month. This information is taken from re¬
ports furnished by members, and from another
source. They are furnished the names of all
parties, known to be coal consumers, who have
lieen sued or had judgments entered against
N. H. Kendall.
them. We also have a way where members can
secure information as to the habits of pay of pro¬
spective customers, in a very short time, by re-
<|ucsting the office for it.
C)ur monthly bulletins contain from three to
si.x hundred names each, and in a very short time
it will be necessary for us to reissue our printed
list.
By this one act of the association thousands of
consumers who were in the habit of getting coal,
paying for it if they wished to, and not doing so
of they so desired, are now compelled to “toe
the mark.”
The amount collected is a good showing, but
the benefit to the members is very small, com¬
pared with what they have saved, by keeping
away from undesirable trade these last seven
years.
Probably some of you, engaged in business in
smaller towns, are thinking that this is all right
for a large city like Chicago, but not in smaller
places. In this you are mistaken, as in a city
with only two firms engaged in the coal busi¬
ness, your proposition is very much easier than
the one we have to contend with. By getting
acquainted with your competitor, who is also
your neighbor, arrangements can be worked out
whereby all coal bills of both parties will be
paid. I am not familiar with your laws, and do
not know how far a proiJosition of this kind
could be carried, but I feel safe in saying that
you are permitted to inform other members of
the trade that Air. Smith owes you $50 for coal
purchased six months ago.
Dealing With Carriers.
.As is well known, Chicago is one of the larg¬
est railroad centers. .As far back as 1 can re¬
member there have been agreements on recipro¬
cal switching, designed to equalize conditions as
between industries. The situation (owing to the
growth of the city) became more confusing, un¬
til in 1905 it was so unsatisfactory and unjust
to all the commercial interests that the various
associations, headed by the Qiicago .Association
of Commerce, began conferences with the car¬
riers, with a view of correcting the existing
evils.
When I say that this situation obtained in
what is known as the switching district, which
embraces territory from a point on Lake Michi¬
gan, just west of Cary, Ind., to the southern
boundary of Evanston, north of the city, a dis¬
tance of about twenty-five miles, and an average
distance back from the lake of twelve or thir¬
teen miles, in which district something over
thirty railroads operate, serving more than two
thousand industries, you can imagine the task
before them in endeavoring to work out a uni¬
form arrangement, which would be satisfactory
to carrier and shipper alike.
After conferences extending over a period of
two years an agreement was reached, and on
August 1, 1911, a tariff, known as the Lowrey tar¬
iff, became effective. This tariff took the place
of individual road issues. Before this time, if a
shipper wanted a rate it would be necessary for
him to consult the tariffs of all of the lines mak¬
ing the deliveries. With the Lowery Tariff in
effect the switching situation was boiled down to
one tariff.
The greatest obstacle to overcome in reaching
the settlement was the allowance for switching
coal and grain. While the association was con¬
sulted it was not in a position to take a positive
stand and back it up. It was understood that the
interests of the coal industry were to be taken
care of. But when the Lowrey Tariff was pub¬
lished it was found, to our amazement and re¬
gret, that coal and coke had been excluded. There
had not only been no improvement in the condi¬
tions surrounding the coal trade, but we were
worse off by $2 per car, in a large portion of the
city, due to a peculiar arrangement of tariffs.
Finding ourselves actually hurt, we got to¬
gether. It was necessary to bring the matter
before the Interstate Commerce Commission, who
sent its suspension board to Chicago. After two
or three days’ conference a tentative agreement
was reached with the carriers, whereby the trade
was, at least, not to be penalized. Conditions
were to remain the same as before the applica¬
tion of the Lowrey Tariff. There were some
points in this agreement that were not clearly
covered, and some of the carriers have endeav¬
ored, at various times, to make changes in their
switching rates on coal and coke.
It was necessary for us, in one case, to file a
complaint with the Illinois Railroad and Ware¬
house Commission on intrastate shipments, and
the Interstate Commerce Commission on inter¬
state shipments. We were successful in secur¬
ing favorable decisions.
Winning a Big Fight.
The decision of the Illinois State Commission
was appealed from, and we had to follow the case
through the circuit and supreme courts of Illi¬
nois, receiving favorable decisions in both courts.
The expense of handling this case was something
like $5,000.
Also growing out of the situation rates were
increased in other parts of the city, which were
very detrimental and discriminatory to the coal
industry. A coal company located on the rails
of one railroad would enjoy the benefit of a rate,
sometimes twenty to twenty-five cents less than
a competitor, only a few blocks distant on an¬
other road, and it was necessary to object to
these conditions.
The objections were in the form of formal
complaints to the Interstate Commerce Commis¬
sion. .As carriers are represented by attorneys,
it was necessary that our cases be likewise pre¬
sented, so that the result of not being properly
organized when we should have been cost the
coal trade of Chicago ten or twelve thousand dol¬
lars in legal expenses, and it is impossible to state
how much in profits.
We have been successful in winning every case
presented to the Interstate Commerce Commis¬
sion, and the returns have justified the outlay.
Our association now has its representative on
the Chicago Conference Committee on Switch¬
ing, which is a joint committee of carriers and
shippers. We now get together on these switch-
( Concluded on page 29.)
No. 2]
THE BLACK DIAMOND
25
Putting a Retail Coal Business on a Cash Basis.
At the recent meeting of the Illinois & Wiscon¬
sin Retail Coal Dealers’ Association, Wednesday
evening was devoted to a round table discussion,
in charge of H. A. Robinson of Peoria. What
follows is, in major part, what the stenographer
took down ; there has been cut out only a few
stories put in to amuse.
The Chairman : We are going to limit the
speakers to three minutes. I wish you would
confine yourselves to the topic under discussion.
The first subject is, “Cash Basis,” and Mr. Peter
E. Beck of Harvey, Ill., will open the discussion.
Mr. Beck: I do not know what Friend Robin¬
son was trying to do to me when he said three
minutes. To cover the subject of cash basis in
three minutes is almost an impossible thing. At
the start I want to explain that I do not want to
speak as one having authority on that subject.
It is a wide subject, a far reaching subject, a
subject in which there are local conditions that
must be considered. It is a thing that laid upon
my mind and upon the minds of those associ¬
ated with me for a great many years. We
thought over the problem each year. On looking
over our books and seeing the “no-good” ac¬
counts that we were assuming, the amount of in¬
terest that we had to pay on them, the amount
of bookkeeping, the clerical wages that we paid
to keep track of them, the cost of the collector
going out pleasantly but persistently trying to
collect those accounts, it simply “got our goat,”
that was all there was to it.
We tried various ways. First we offered a
cash discount, but that did not work at all, be¬
cause the thirty day customer, when he pays his
account in thirty days, is supposed to get a dis¬
count, and when you allow it to the thirty day
customer the sixty day customer wants it, and
you have to allow it to all.
We tried, several years ago, the matter of giv¬
ing coupons, trading stamps, and that sort of
thing, but that is just as bad as the other. It
becomes a nuisance and does not work.
So a year ago we made up our minds that we
would absolutely sell coal on no other condi¬
tions except than for cash. No matter whether
we sold to a millionaire, a check would have to
be received with the order or would have to be
paid to the driver or to the messenger at the
time of delivery. Sometimes we sent one of the
clerks from our office to collect the bill, because
it has to be collected elsewhere. But it vvas
always collected the same day the coal was deliv¬
ered, or some time perhaps on the next day.
Getting Away With It.
Of course, it naturally took a lot of hard work
to introduce it and to explain it. A lot of peo¬
ple did feel naturally “sore” to have a driver
come up to their house to deliver a ton of coal
and come in with a ticket marked “C. O. D.”
That looks just like striking them in the face
and insulting them. But before we did that we
started out on a two months’ campaign. We got
a complete list of our customers, and a couple
of women were sent around to every house to
get the people posted. We started advertising in
the papers, something to this extent :
“Did you ever stop to consider what it costs
you to do business with the merchant who gives
credit?”
I used a half page of two local papers with
nothing but that for one week. The next week I
followed that with something like this :
“When you buy from a merchant who gives
credit you have to pay for selling to the cus¬
tomer who never pays at all. The cost of giving
him credit is the cost of carrying his account in
the business. Do you realize how much carry¬
ing his account costs you?”
We had an auditor go over our books and pre¬
pare a statement, and I have satisfied myself
that it was substantially correct. It costs us fifty
cents per ton to do a credit business. We put
in our statement the extra clerical labor, the cost
of collecting, the interest on the money invested
in outstanding accounts and bad accounts and all
those things entering into it, and it amounted to
approximately fifty cents a ton.
We published that and followed it with news¬
paper advertisements during the months of June,
July and August, twice a month in the news¬
papers, so that nobody could fail to get it. Then
we started out on the first of August by saying
that we were going to serve the consumer in the
best manner possible, that we wanted to cut down
every item of unnecessary exi)ense, that the most
unnecessary expense we ever incurred was that
Peter Beck Explains His Plan and Other
Members of the Illinois and Wisconsin
Association Discuss It.
of giving credit ; that we were going to reduce
the price by doing away with this unnecessary
expense. We made a reduction of fifty cents a
ton for deliveries in two-ton lots, and a reduc¬
tion of twenty-five cents a ton for deliveries in
one-ton lots, and for less than ton lots the price
would be the same as before. We made just one
price for all.
We started this plan and carried it through all
last year by simply mailing out a price card the
first of every month, and with some new feature
connected with the selling of coal for cash only.
We carried it through in that way and our sales
from the 1st of January, 1914, to the 1st of Jan¬
uary, 1915, exceeded the sales of the previous
year about ten per cent. The other day I went
over the accounts of our April sales of coal and
we had six accounts that just through some over¬
sight, or because the people were not at home, or
something of the kind, had got on the list. And
that was on a tonnage of about 6,700 or 6,800
tons for the year.
Now, that is what we have succeeded in doing
this year, in selling coal on the cash basis. As
Peter Beck.
far as I am personally concerned we will never
again sell any coal on credit.
We have other features and other local condi¬
tions to meet at present connected witli the way
we conduct the business, which have made losses,
hut it is not due to selling coal for cash.
I believe it is the biggest and best advertising
that any business can adopt, that of selling your
product for cash and at the lowest possible cost
to the consumer. I believe that any concern that
undertakes it carefully and systematically will
make a success of it.
The other dealers in our town did not wish to
co-operate with us. They have not yet, so that
in our locality they still adhere to the heavy bur¬
den of selling on credit.
Experience of C. S. Dodge.
The Chairman : Is there any one else here
who has had any experience in selling for cash
only ?
C. S. Dodge, Monroe, Wis.: I started in the
coal business six years ago this summer. There
were six dealers in our town of 4,500 people. My
father was one of the dealers. He has been in
the lumber business for fifty years. He objected
to my building a coal elevator. He said it would
not pay, but I went ahead on my own hook. I
borrowed the money to build it and borrowed
the money to go into the coal business. I was in
the lumber business with my father and thought
1 could carry on the lumber business, but I had
failed in it. I built a coal elevator that is
twenty-four by fourteen, thirty-two feet high to
the eaves. I have a better location than the rest
of them, because I am only one block off from
the public square. I started out to do a cash
business. But it has got away from me; I have
not stuck to it, I am sorry to say. But my busi¬
ness jumps by leaps and bounds, and last year my
increase was over $4,000 from the year before.
This year it is running higher than it was last
year. The cash business did not stop me from
getting business. The elevator drew business.
They used to sell a great deal of lump coal. I
started in handling No. 1 coal, and I have edu¬
cated the trade so that about sixty per cent of
the coal I handle is No. 1 coal, and probably
about thirty per cent is hard coal. We give them
screened coal that runs over a screen into their
wagons and the farmers all come there and buy
their coal, even though they are related to the
other dealers.
Cash Always.
Mr. Beck: I forgot one item, and what Mr.
Dodge says brings it to my mind. You may ask
if it is impossible under any circumstances to
give credit. I have had maybe a dozen people
who have been good customers, who own their
own homes and have been buying of us for sev¬
eral years. It is an industrial town, and they
will not get a cent till pay day. Just a month
ago a woman came around with that plea. I
knew her to be perfectly good. She simply tele¬
phoned over from a neighboring telephone. I
explained to her that we were selling coal on a
cash basis which enabled us to give a low price.
She came over and we talked about it. She
wanted $4 worth of coal. So I took a $5 bill out
of my pocket and lent it to her, and I said :
“There is nobody in my office that knows any¬
thing about it. I will lend you this money and
you can pay me next pay day, or you can address
it to me personally in the mail.”
She paid it. I have done that about half a
dozen times, not over, and in no case have I
failed to get the money back. But I have felt the
absolute necessity of adhering to the rule, or the
whole proposition would fall down.
A Member: You pay your bills with cash,
do you?
Air. Beck: Certainly; I do a cash business with
the merchants. I have asked Mrs. Beck to pay
her bills in cash. It is some trouble to her to
do it, but she does it. I have done that in order
to carry out the principle.
A Member : Suppose a person comes in and
says, “I haven’t any money.” What would
you do?
Air. Beck: We do not take him his coal. We
handle lumber, too, and that is the only way we
extend credit. I have gone thirty or sixty days
perhaps on lumber. We take installment notes at
six or seven per cent interest. I do not do that
with coal, because at the price we are handling it
we cannot do it. The principle we are working
on is to make it as cheap as possible to the con¬
sumer, cutting off every unnecessary expense,
and if Mr. Rademacher is here this evening I
think he can tell you the condition they have run
up against in Alilwaukee, because the lumher con¬
cerns are entering into tlie coal business and sell¬
ing coal for cash and giving coupons with it,
these little trading stamps.
A Alember : Don’t you think if it can be car¬
ried out in a big town it can be in a small town ?
Mr. Beck: Our town is not so big. It has
only about 9,000 population. I do not know why
it should be, because you can make it perfectly
apparent to everybody that they have been paying
the cost of this credit system. I have had people
come into our office and say:
“Ain’t I good? Don’t I always pay my bills?”
“Sure you are good, but I am almighty
ashamed of the fact that I had not the nerve
before to do anything but charge you an extra
price for the fellow that never paid his bills and
the other fellow that is slow pay.”
Of course it is a little hard on an old business.
It is hard for me to educate my office men diplo¬
matically to carry that out. It meant very close
attention, during the fall months last year, sit¬
ting right in the office and meeting pretty nearly
every person that came in, and answering every
telephone call. But that is all pretty well cov¬
ered now.
Recognizing the increasing activity of Balti¬
more as a coal port, the Davis Coal & Coke
Company has re-established its headquarters in
this city. Two years ago the general offices
were removed to Cumberland. President .A. \V.
Callaway will hereafter make his home in Balti¬
more.
26
THE BLACK DIAMOND
[July 10
Sale of Pittsburgh-Buffalo Company Properties
Pittsburgh, July 8. — (Special Correspondence.)
— The sale of the properties of the Pittsliurgh-
Buffalo Company, which has lieen postponed
from time to time, has again lieen set by order of
Judge Shafer of the Court of Common Pleas.
The court issued the order last Monday. The
date, as now set, will be July lath. The sale is
under the mortgage held by the Union Trust
Company of Pittsburgh. What further action
will or can be taken by the receivers of the com¬
pany is not known.
The sale is for the satisfaction of two mort¬
gages, one for a $2,()0(),()()() bond issue, which the
trust company financed, and the second asking
indemnity for a loan to the company on the paper
given it by the officers of the company.
This latter obligation was placed by an attor¬
ney of the company yesterday at $1 ,7.')0,0()(), which
Bids for and Contracts Let on Coal
Bids on Ohio Contracts,
Columbus, Ohio, July 8. — (Special Correspond¬
ence.) — Bids have been opened by the trustees of
Ohio State University, Columlnis, on 1. "),()()() tons
of nut, pea and slack. The lowest figure submit¬
ted was that of the Halmer Coal Company, Cin¬
cinnati, a price of twenty-si.x cents having been
made. It is the claim of the company that it
will realize a heavy enough premium under the
specifications to raise the price to a good figure
should the contract be awarded it. Pending the
analysis in its own laboratory of coal samples
submitted, the trustees are holding hack announce¬
ment of successful bidder.
The Franklin County Commissioners have made
award of coal contracts as follows : Peacock
Coal Company, Columbus, 4,000 tons of Pomeroy
delivered on infirmary switch at price of $1.60
for use at the county infirmary, court house.
J. E. Mitchell’s Silo Coal Pockets at Glenolden, Pa.
makes the Union Trust Company’s claim against
the company approximately $4,000,000.
Other liabilities of the company were said by
lawyers to total several millions more, but with
which they have no concern.
The holdings of the company consist of five
separate mines, all . of which were prosperous.
These are the Marianna, the Hazel, the Frances,
the Johnetta and the Bertha mines. John H.
Jones is the president of the company and D. G.
Jones is the general manager.
The troubles of the company are said to have
been hastened by the formation of the Four
States Coal & Coke Company, an auxiliary con¬
cern, and into which was poured much of the
revenue of the Pittsburgh-Buffalo Company.
.A.S advertised today, the sale will be by public
auction in the rotunda of the .Allegheny court
house, at 10 a. m. the 1.1th.
county morgue and memorial building; jM. A.
Suydam & Co., Columbus, 1,;20() tons Pomeroy
mine run, at delivered price of $1.95 for court
house and memorial hall.
Michigan Reformatory Bids.
Bids will be received by the Michigan Reform¬
atory at Ionia, Mich., until -August 6, 1915, for
4, ()()() tons of bituminous coal to be delivered at
Ionia, one to three cars per week, as needed, in
flat Iiottom cars. Bids must be accompanied by
analysis and the name of the coal, with the state
and county where it is mined and the nearest
shipping point to the mine, and price quoted f. o.
b. Ionia. Bids will be opened at the warden’s
office at Alichigan Reformatory on -August 6,
1015, or as soon thereafter as a quorum of the
Board of Control shall be present. The success¬
ful bidder will be notified by mail.
The photograph shown herewith is that of
the very efficient coal handling plant of J. E.
Mitchell at Glenolden, Pa. The three silo
coal pockets have a combined capacity of
1.000 tons, ami were built by the Creamery
Package Company of Rutland, Vt.
The round bins are 24 feet in diameter and
,■)() feet high. The staves are of Canadian
spruce plank dipped in creosote oil to pro¬
long the life of the staves by preventing rot.
The staves are held in place liy hoops made
of j4-'iich steel rods.
Owing to the fact that the railroad track
runs along behind the pockets, two systems
for ele\ating and conveying the coal are nec¬
essary. The coal is dumped from the cars
into a steel lined concrete hopper, and carried
from the hopper to a chain conveyor by
means of a double chain elevating arrange¬
ment. However, these two systems or ma¬
chines are operated as a unit, an electric mo¬
tor being used with gear reductions and fric¬
tion clutch. The coal in the pocket is also
gently lowered to the floor by means of chain
conveyors.
The conveying and elevating machinery was
furnished by the Gifford-Wood Company of
Hudson, N. A'. The plant w'as completed last
Communications.
“A Diseased Nation,”
Editor The Black Diamond.
Chicago, July 7. — It was somewhat startling
to learn that -America is a diseased nation. It
was even more difficult to follow the line of rea¬
soning used in proving the premise. Granting
that the editor drew heavily upon the imagination
in employing a negative — hence a misapplied defi¬
nition — of a positive condition, nevertheless, his
diagnosis of the symptoms could not, in the light
of modern opinion, be accepted as conclusive. In
fact, when we consider what is being done along
sociological lines by large employers of labor, the
sentiment of this editorial sounds more like an
echo of the past generation than a reflection of
modern thought.
That the world today is more restless is unde¬
niably true. But it is a restlessness born of a
desire to advance ; to improve ; to utilize the ad¬
vantages that arts and sciences have spread for
our use. It is the pressure of economic bondage
throbbing in the mass that seeks a greater free¬
dom so that it may enjoy the fruits of advancing
civilization. It is not a state of dis-ease. On the
contrary, it is a living, positive force learning to
know what it wants, that will not down.
-Allowing that the laborer is better housed,
better fed and better paid than ever before, it is
equally true that the cost of living at the same
time has increased in greater proportion to his
income with which to buy the improved living
conditions. Therein lies the source of discon¬
tent. The disorganized mass of foreigners at
Lawrence, Mass., did not declare war because of
the mouthings of violent agitators, but because
an adult male could not support a family on a
wage of $7 per week.
Keen minded employers recognized, not only
the danger of such treatment of labor to our
established institutions, but alsh the more perti¬
nent fact that a better paid and cared for em¬
ploye will render more efficient and profitable
results. Henry Ford proved it. He may have
been dubbed an anarchist by his competitors, but
he has set a pace that but few, if any, can fol¬
low. The Wisconsin Steel Company, at its coke
works at Benham, Ky., has recognized these facts
and today folks in that wild mountain country
speak about things done the "Benham Way.”
And it pays.
Jane -Addams, Ida M. Tarbell, Lincoln Steffens,
Ray Stannard Baker and Victor Berger are not
suffering from mental dis-ease. They saw and
suffered in their day from intolerable injustice
and asked for a change. Ida M. Tarbell took up
a line of investigation because her father was
financially ruined through secret rebates and un¬
fair competition. Lincoln Steffens was among
the first to expose the political corruption in
American cities. Ray Stannard Baker pointed
out the futility of church work without practice
of the Master’s teaching. Berger was a conserv¬
ative among radical socialists and recognized the
rights of capital under the existing order. -And
Jane Addams. To charge her with sowing dis¬
content! A woman whose whole life is devoted
to the uplift of the helpless and ignorant. -A
woman whose work is praised and honored wher¬
ever civilization extends. The "Greatest Living
Woman,” as one of Chicago’s leading dailies
describes her, to he guilty of the motives ascribed
to her, leads to the suspicion that the editor
draws heavily upon the credulity of his readers.
The men and women referred to, judged by their
work, cannot be the instigators of movements
that seek to overthrow the established order.
They seek to correct evils that have crept in and
provide for a greater measure of justice to which
we are all entitled.
It seems to me that this is a field which the
trade publications generally overlook. As leaders
of thought, they •seek to maintain rather a one¬
sided, ultra-conservative position without serious¬
ly considering the various shades of modern opin¬
ion. The world today no longer seeks to suppress
truth. It asks for light — the safest guide hy
which solid and permanent peace and contentment
can be reached. And, happily, signs of improve¬
ment are apparent on every hand. We are learn¬
ing to rela.x — to think.
A’ours very truly,
L. Romanski,
President of the -Atlas Coal & Coke Co.
[Our points of view on such things. Air.
Romanski, depend on our information about
them. A’^our information about them differs,
apparently, from ours. AMurs leads to a eulogy.
Ours does not. Whose information is correct?
That is the point, after all. — The Editor.]
fall.
I
A View of the Silo Pocket Built for J. E. Mitchell.
THE BLACK DIAMOND.
No. 2]
Reading Company Wins in United States Court.
Phil.\i)elphi.\, July T. — (.Special Correspond¬
ence.) — Following close on the heels of the
Delaware, Lackawanna & Western decision in
the United States supreme court, came the United
States district court's finding in the suit of the
Government against the Reading Railroad. This
was announced last Saturday, and with the ex¬
ception of three minor points was a victory for
the Philadelphia & Reading Railroad and the
Philadelphia & Reading Coal & Iron Company.
Briefly, the points gained by the Reading Com¬
pany are : Charges of violation of the anti-trust
act are dismissed ; charges of violation of the
commodities clause are dismissed ; right of coal
operators to acquire coal lands is upheld ; that
the decision in the Lackawanna case has no
bearing on the Reading suit. The point of dif¬
ference held by the court is a suggestion that
the Jersey Central and the Wilkes-Barre Coal
Company be divorced from the Reading Company
in tliat the control is objectional and conflicting.
The court holds that no evidence has been
produeed to show that oppression or discrimina¬
tion was practiced by the three Reading com¬
panies. The court also says that no dealers have
been prevented from transacting their business
and no shipper has been prevented from carrying
on his trade. The court says :
“Everywhere along the Reading Railway the
coal of other shippers over that route meets its
own coal, while at many points the Pennsylvania
Railroad and the Lehigh Valley Railroad bring
the product of other mines.
“In more distant markets it faces the competi¬
tion of all its great rivals. Neither is there any
proof that the price of coal has been extortion¬
ate or unreasonable. Even in times of scarcity
there has been no e.xaction of higher prices, al¬
though in such a situation some of the independ¬
ent producers have taken advantage of the public
need. The rates of freight have remained for
years substantially as they now are, and ( except
in the case of certain shippers over two other
roads, not defendants, that reach the anthracite
field) the Interstate Commerce Commission, with
full power of regulating the sulq'ect, has not in¬
terfered with these rates. Indeed, the Commis¬
sion heard and dismissed a complaint against the
reasonableness of the rates charged by the Read¬
ing Railway and other carriers at the suit of
William R. Hearst several years ago.
"Neither does the evidence support the charge
of the bill that “the transportation of anthracite
by railroad at the rates now and for a long time'^
past in force has been and is enormously profit¬
able' : and this charge is not pressed in the Gov¬
ernment's brief. And the mining of coal during
the years from 1898 to 1913, inclusive, has re¬
sulted in a profit to the Coal & Iron Company of
no more than eighteen and one-half cents per
ton, while its miscellaneous receipts increase its
income.”
The holding of coal lands by the Reading Com¬
pany is not taken by the court to be an evidence
of restraint of trade, and the court expressed
itself thus :
Philip P. Woods, the well known transpor¬
tation man of No. 1 Broadway, New York,
sent the first barge of bituminous coal through
the Cape Cod Canal. This was the barge
“Ida Wood,” which took a cargo of coal from
Perth Amboy to the Cape Ann Anchor
Works, Gloucester, Mass. The barge carried
"It is elementary prudence to look ahead. * *
* Since coal is a much-desired article, he (the
miner) is not only serving himself, but is serv¬
ing the consumer also when he takes the neces¬
sary measures to prevent the supply from being
exhausted or interrupted. And we are not aware
of any federal statute which has declared it un¬
lawful to lay in a large supply of raw material.
* * * The mere size of his stock does not make
a merchant an offender against the law.”
The court holds that the railway and the coal
and iron companies are separate and distinct in
organization, and therein lies the difference be¬
tween the case of the Reading and the Lacka¬
wanna companies. In this regard the decision
says :
"But even the lawful right, originally used for
a lawful purpose, may afterwards be used to
attain an unlawful object. .Although the organi¬
zation of the companies may have been lawful,
and although their alliance may also have been
lawful, the question remains, have they since
offended ?
“.And, especially, have they offended against
the commodities clause?
“To be exact: Has the Reading Railway since
May, 1908, carried coal that had in substance
and reality been mined or produced by it, or
under its authority, or which it owned in whole
or in part, or in which it had any interest, direct
or indirect?
"In our opinion, these questions must be an¬
swered in the negative, unless the long-estab¬
lished legal conceptions concerning corporate or¬
ganization ought not to prevail in the present
case. These conceptions are so deeply rooted in
the theory and practice of the law that an im¬
mense readjustment of legal rules would be
neeessary if the legal separateness of a eorpo-
ration were to disappear and he replaced by the
rights and liabilities of the individual stockhold¬
ers.
"The theory of separate corporate entity has
been of enormous value, and while it has been
sometimes alnised, there is no doubt that indus¬
trial society is largely based upon its conspicu¬
ous features of distinct and separate existence
and of limited liability.
Abuses Not Overlooked.
“The abuses have been exceptional, and the
law has not overlooked them. Where a corpora¬
tion is a mere screen for an individual, or where
one corporation performs a similar office for an¬
other, the device has not been allowed to stand
in the way of justice and fair dealing. But we
may safely saj’ that in practically all such in¬
stances the element of fraud or bad faith is to
be found, and it is certainly rare to find a situa¬
tion where such an element is secure from suc¬
cessful attack. The cases already decided by
the supreme court make the distinction between
good faith and bad faith. * * * If, then, the
Government can succeed iu the present case, it
must offer evidence to satisfy the rules laid down
by these decisions; and this l)rings us to consider
what facts have been proved.
9.50 tons of coal, and passed through the
canal on May 11.
The accompanying picture shows the barge
passing through the canal at a ijoint about
midway between Buzzards Bay and the east¬
ern outlet. Eastern coal men will watch the
development closely.
“That the law has been consciously and de¬
liberately violated we do not believe, and decline
to find. But as the commodities clause does not
make the carrier's state of mind an essential ele¬
ment in the offense, the question is still open
whether the Reading Railway and the Coal &
Iron Company, whatever their intention may
have been, have in fact so conducted their affairs
as to violate the law.”
While the particular matter of the divorce¬
ment of the Wilkes-Barre Coal Company from the
Jersey Central was not argued, yet the court
holds that inasmuch as the Jersey Central is the
chief holder of the stock of the Wilkes-Barre
Company and this is a competitor of the Reading
Coal & Iron Company the exactions of the law
would be met were the Wilkes-Barre Company
divorced from the Jersey Central.
The decision was written by Judge McPherson
and was approved by his colleagues. Judges Buf¬
fington and Hunt.
A dispatch from Washington received early
this week announces that steps have been com¬
menced to appeal from the decision and carry
the case to the Lhiited States supreme court.
A New One-Man Drill.
The accompanying illustration shows a new
type of powerful coal drill recently developed
and placed on the market by the Jeffery Man¬
ufacturing Company of Columbus, Ohio.
The motor and drill mechanism proper are
mounted on trunnions in a carriage, which
may be raised or lowered in a vertical chan¬
nel-iron frame hy means of a J^-inch steel
rope. One end of this rope is fastened to
the top yoke of the frame and the other end
to a drum on the carriage. This drum is
rotated by a handle, as shown, to wind up
the rope and to raise the carriage. A ratchet
and pawl are provided on the drum to pre¬
vent the carriage from dropping when the
handle is released.
Wdien it is desired to move the drill from
one place to another, the carriage carrying
the motor and mechanism is lowered to the
bottom of the frame and the drill rolled along
on the wheels provided on the bottom cross¬
yoke, in a manner similar to an ordinary hand
freight truck.
The motor of this drill is rated at 3 h. p.
The total weight of the drill is approximately
300 pounds, while it is made sufficiently rugged
and powerful to drill through any material
against which the auger will stand up.
With the means employed on this drill for
raising and lowering and with the wheels pro¬
vided for moving it from place to place, only
one man is recpiired to move, set up, adjust
and operate the machine.
First Barge of Coal Through Cape Cod Canal.
28
THE BLACK DIAMOND
[July 10
Simple Changes Possible in a Furnace.
By H. A. Atwater.
Once the steam coal buyer has had his at¬
tention directed to the substantial reductions
in steam costs which it is possible to make by
the proper use of the cheaper grades of coal
he should be cautioned against rushing blindly
into the market after the cheapest grade of
coal he can find. Nor should this warning be
reserved solely for the buyer of cheap coal.
This matter is of just as vital importance to
the user of the higher priced coals as it is
to the user of the cheaper coals, as the former,
having the proportionately greater coal bill
should be all the more anxious to make cuts
in his yearly fuel bills.
The first and by far the most important fact
to be impressed upon the buyer is the only
correct basis upon which comparisons of the
commercial efficiency of various fuels should
be made. This is the actual cost of generation
of a certain quantity of steam, say for ex¬
ample, a thousand pounds.
Of the various cost items which enter into
this quantity by far the largest and conse¬
quently most important one is the fuel cost
of generating a thousand pounds of steam.
A resolution upon the part of the
buyer to try every possible kind of coal
seems commendable at first glance, but a lit¬
tle consideration will readily indicate that such
a procedure is very liable to end in disastrous
results. The furnace equipment of any plant
is suited more to the combustion of some par¬
ticular type of coal, and haphazard experi¬
ments with every coal available are liable to
result in a complete shutdown. While a great
deal of emphasis should be laid upon the
possibility of substantially reducing steam
costs by the intelligent use of cheap coals,
the fact should not be lost sight of that often
the cheapest coal to burn is one of the higher
grade and consequently higher priced coals.
The composition of coals varies so greatly
and there are so many factors all of which
directly affect the efficiency of combustion
that no hard and fast rules can be applied to
steam plants in order to obtain the most
economical operation. However, there are
many general rules which will apply to all
furnaces and the best results will be obtained
by the owner who is guided by these in putting
into effect any methods which experience and
local conditions might suggest. .
In taking up these general governing prin¬
ciples the logical start would be with the sub¬
ject of the design of the furnace. There are
many other factors which should be con¬
sidered in connection with this subject, but a
rough outline of a few of the more common
examples of furnace design as found at the
present time, and the changes which will
usually result in an improvement would be
most useful in aiding the owner in acquiring
an understanding of the problem of fitting a
coal to his furnace condition or vice versa.
The owner might argue here that his par¬
ticular furnace design features are fixed, and
hence that this discussion does not help him,
but such an attitude is not justified. Very
few owners are so placed that they will never
have to consider the possibility of future ad¬
ditions to their steam generating equipment,
and even though they should be so placed
any poor furnace design can be changed in
many ways and usually with the expenditure
of a trifling sum of money. For these rea¬
sons it is to an owner’s best interests to ac¬
quire a general knowledge of these principles
of furnace construction without which it would
be impossible to proceed intelligently towards
the selection of a coal to fit any specific con¬
ditions.
In the earlier days of steam power plants
settings were developed in the eastern states
for use almost exclusively with the higher
grade coals such as anthracite and bituminous
coals of a low percentage of volatile matter.
Gradually these earlier designs became prac¬
tically standardized and naturally, when these
standards were followed in laying out plants
in regions where only the poorer grades of
coal were available trouble was immediately
encountered which usually took the form of
incomplete combustion. Most of the changes
which it is possible to make in existing plants
are a result of the endeavor to get away from
these old established standards.
Figure I is an outline of the type of setting
usually seen with a horizontal return tubular
holier. In this more or less standardized set¬
ting the grate surface is usually about twenty-
six to thirty inches below the bottom of the
boiler shell, the combustion chamber back of
the bridge wall is usually filled in and leveled
off by a sloping course of brick, and the arch
at the rear of the boiler is usually a curved
surface. In almost every such case combus¬
tion can be greatly improved by removing the
filling behind the bridge wall and changing the
curved arch to a flat one at the rear end of
the boiler as indicated by the dotted lines in
the figure.
Furthermore when installing new settings
the boiler should be raised so as to have at
least thirty to thirty-six inches of space be¬
tween the grate surface and the boiler shell,
the top of the bridge wall to be carried up
also to correspond with the change. There
are many different types of wing walls piers,
etc., designed for the purpose of securing a
better mixture of air and the gases evolved
from the coal. It is useless though to give
a diagram of any of these arrangements as
most of them give more or less trouble on
account of their inability to withstand for any
length of time the intense heat to which they
are subjected. Nevertheless the owner can
very well pay some attention to these mixing
devices as there is no question as to their value
with reference to improving combustion in
general. Experiments have been made with
arches sprung over the grates to protect the
gases from the chilling effect of the boiler
shell, but while they usually make for more
smokeless operation they seldom increase the
overall efficiency.
Figure 2 is an outline of the setting and
method of baffling usually seen with a Heine
boiler, which is a good representative of
horizontally baffled boilers. In this type there
are only two changes of any importance which
can be made. The first change has to do with
the baffling. The figure shows the standard
baffling giving two passes to the gases, but
of recent years a number of installations have
gone in with a larger number of baffles. The
other change concerns the type of tile roof
used over the furnace. This tile roof can be
constructed of “C” or “T” tile, the “T” tile
roof being supported only by the row of tubes
upon which it lies, while the “C” tile roof in
addition to being supported also completely
encloses and thus prevents its supporting tubes
from exercising a chilling action on the furnace
gases. The figure illustrates a “C” tile roof.
The advantages and disadvantages of these
two roofs are of too detailed a nature to go into
in the present discussion.
The best known type of vertically baffled
boilers is the Babcock and Wilcox water-tube
boiler, which is of such a standardized nature
that a sketch of it is hardly necessary. With
this type of boiler most of the easily made
changes have to do with the arrangement of
the baffles and their number. So far as the
different settings as a whole are concerned
the furnace can be shifted to the rear end
of the boiler which makes it possible to in¬
stall a tile roof over the furnace proper and
secure a dutch oven effect.
The baffling and furnace design of the Stir¬
ling boiler is so well established that there
are not many changes possible to make. Most
deviations which are being made at present
from the standard three pass design run to¬
wards an increasing number of baffles thus
giving more than three passes for the gases.
So far as grates and stokers are concerned,
changes in these are more a matter of varia¬
tions in design brought out by the manufac¬
turers and troubles encountered in the use of
any grate under certain conditions can usually
be remedied only by completely replacing it
with some other better adapted type. In
mechanically stoked plants the questions of
how much spring to give an arch, its proper
height above the grate, whether it should be flat
or curved, and how much pitch upwards it should
be given when carrying it back towards the
throat of the furnace all present almost un¬
limited possibilities for any owner who wants
to go into the subject of what changes he
can make in his present furnace design.
The foregoing discussion has been very gen¬
eral in character and has touched only upon
some of the more commonly met types of
boiler installations. The object has not been
to cover the field of present day boiler and
furnace design or to go into the reasons for
making certain changes in furnace designs,
but merely to show in a general way that
any owner, regardless of what type of furnace,
stoker, or boiler equipment he may have, can
make a number of changes without much ex¬
pense or trouble. The question of when to
make these changes and when not to, of course,
is one involving many correlated factors which
could only be presented by means of a de¬
tailed discussion.
The Fidelity Fuel Company has taken over the
entire production of the Oklahoma Consolidated
Coal Companies, Dewar, Oklahoma. J. T. Buck¬
ner, formerly general manager Oklahoma Coal
Company, is general sales manager of the Fidelity
Fuel Company, headquarters at Mtiskogee, Okla.
No. 2]
THE BLACK DIAMOND
29
America “Arrives” as a Factor in Coal Exports.
It was not so many years ago that the
total exports of bituminous coal over the At¬
lantic seaboard did not exceed 1,000,000 tons
per annum. For the past two years, they
have averaged 4,200,000 tons per year.
Therefore, when we make the announce¬
ment that exports for June past exceeded 1,000,-
000 tons, the exact figures showing 1,047,277
tons, we record the advent of a new era for
the export coal trade of America.
It has been a hard up hill struggle_ to make
much headway in building up a fair export
business in coal from America. The great
handicap has been the lack "of shipping — all
bottoms used in this trade being until the
last few months, of foreign ownership, and
for the most part, owned or controlled in
Great Britain, with which country we have
been competing for export trade. Moreover,
but few of the American coal men had the
capital and courage to go after foreign trade.
It has been a hard fight for them, but a study
of the figures of exports for the past three
months, say, show that they have won out, and
that they are now so firmly entrenched in the
foreign trade in both hemispheres, that even
a sudden cessation of the European war will
not drive them from the positions they have
attained in the principal foreign markets where
they are sending American coal today in a
large and radically increasing volume.
Exact exports for June by ports, were as
follows;
Tons-
Hampton Roads . 604,69)
Baltimore . 314,79!)
Philadelphia . 127,7^3
Total
1,047,277
This shows an increase of 269,277 tons ovei*
May, when 778,000 tons were exported.
A table of exports from these ports for the
first six months of 1915, shows:
Hampton Phila.
Baltimore. Roads. delphia.
January . 89,779 117,607 54,078
February . 79,029 150,417 32,794
March . 76,888 262,687 43,290
April . 193,293 448,239 60,658
May . 231,124 442,872 107,670
Tune . 314,799 604,695 127,783
Totals . 984,912 2,026,517 426,273
Grand total for all ports 3,437,702 tons.
Total exports for the entire year of 1914,
were 4,205,000 tons, so that the first six months
shipments of this year fall only 767,298 tons
short of reaching the total for last year.
A comparison of figures of the first six
months of this year exports for the corre¬
sponding months of 1914, shows that Balti¬
more in the first half of this year more than
doubled her exports for the same period in
1914, by shipping 984,912 tons abroad. Total
shipments from Baltimore for the first six
months of 1914, reached 452,538 tons, while
shipments for the same months this year
totaled 984,912 tons.
Shipments from Baltimore for the first six
months of 1914 and 1915, respectively were:
Destination —
Italy .
Spain .
Costa Ki CO .
Panama .
Cuba .
France .
Argentine .
French Africa ....
Netherlands .
Guatemala .
Philippines .
Egypt .
Honduras .
British West Indies
French West Indies
Sweden .
Uruguay .
Mexico .
Jamaica .
Venezuela .
Porto Rico .
Central America . .
Martinique .
Brazil .
Greece .
1914. ini.'i.
102,413 456,793
37,765 16,40 1
15,240 6,703
19,911 3,145
116,580 84,313
40,826 18,843
34,170 272,719
20,921 .
202 .
9,854 2,757
12,809 .
38,961 60,128
900 8,500
696 84
1,190 * .
. 18,865
. 11,547
. 45
. 1,885
. 9,500
. 4.436
. 2,500
. 2,500
..... 9,705
. 5,592
Totals . 462,538 984,912
.A.S is shown from tables given in the fore¬
part of this article, Philadelphia has also be¬
gun to show increases in tonnage, both May
and June, showing marked improvement over
the earlier months of the year.
Hampton Roads exports began to improve
in March, April and May, both showing very
heavy gains. The June increase over May
was 161,823 tons.
The distribution of coal exported from Hamp¬
ton Roads during June, 1915, was as follows;
Country — Tonnage.
Italy . 244,893
Portugal . 3,254
Spain . 13,638
France . 13,147
Greece . 11,189
Egypt . 8,007
Morocco . 2,348
Holland . 10,886
Sweden . 6,833
Canary Islands . 3,800
.\frica . 15,802
Bermuda . 1,125
Porto Rico . 2,994
British West Indies:
St. Lucia . 4,541
Bridgetown, Barbados . 14,026
Georgetown, Demerara . 1,697
Port of Spain, Trinidad . 11,634
Curacao, D. W. 1 . 6,541
Cuba . 29,283
Mexico . 3,414
Chile . 750
Peru . 3,143
Argentine . 26,982
Uruguay . 11,968
Martinique . 4,641
Brazil . 101,056
Panama . 47,708
Total . 604,095
Making a Bigger Profit.
(Concluded from page 21.)
twenty-four per cent for the year.
Thus, laying aside the question of the re¬
sponsibility of the retailer to keep his custom¬
ers supplied with coal and laying aside all
other questions of good policy, it is a profit¬
able thing to buy coal when it is at the low
price and to sell it out quickly the minute the
price rises.
As indicated in what has been said, the time
to buy anthracite is in April, May and June.
The time to sell it is in October and Novem¬
ber.
The time to buy smokeless lump and egg is
in April and May; the selling time is the same
as in anthracite.
The time to buy smokeless mine run is the
latter part of June or July, so long as the
present basis of prices is adhered to. The
time to sell it is in October and November.
The time to buy bituminous domestic coal
is in June, July and the first half of August.
The time to sell it is in October and Novem¬
ber. The time to buy again is when the
slump comes in December. The time to sell is
when the busy time comes in February and
March.
A Limited Advantage.
If every one followed this program, the
situation would very quickly change. The
periods which now offer bargain prices would
be the high priced periods of the year. How¬
ever, there is no possibility that any such
change can come in the coal trade. In the
first place, there always will be those who will
not be forehanded in their buying, no matter
how much they are urged.
Also there are sure to be those who will not
have the money to invest in coal at these op¬
portune times.
Also there are retailers who have no storage
capacity and could not house coal even if they
bought it.
For these reasons, there is no danger at all
that what I recommend as good policy for a
few retailers will become the general buying
practice of the trade.
The Selling Policy.
Having bought the coal advantageously, the
question arises; How can the retailer sell it
to an equal advantage? I have noticed in the
retail trade two practices which I think are
indications of mistaken policy. A retailer will
buy storage coal in the early months as here
indicated and then will hold it, sometimes, un¬
til February or March, before he tries to move
it out. This is not giving him a turn-over
which he ought to have. On the contrary, he
keeps coal in storage so long that a good part
of the advantage is lost because the interest
eats up part of the profit. Also he passes
over the big buying time of the householders.
I doubt if any dealer deliberately tries to
hold coal for a better market. Doubtless the
average dealer simply waits for customers to
come and merely accepts orders.
Good merchandising suggests that where
there is a possibility of a profit, take it. That
is, if you have carried coal from May until
October and you get a chance to sell your coal
at a price which will insure a good profit, sell
it. Then if you want to restock for a later de¬
mand, continue to buy coal for current de¬
livery and put that in storage and hold that
until the later demand arrives.
Another policy which I think is mistaken is
to base the selling price in October, Novem¬
ber and December on the purchase price in
the earlier period. This is giving the house¬
holder the profit which you should have or
the interest on your investment which you
should keep for yourself. The householder
invested no money in coal in April and May.
He did not carry the insurance on it. He did
not assume any responsibility for it. Rather,
he waited until he wanted the coal before he
bought. Therefore, the householder earned
no profit on his winter supply of coal and he
should not have it. The profit belongs to the
man who is forehanded and far-sighted. That
is the retail dealer. Therefore, the price
charged in October and November should be
the regular price dictated by the law of sup¬
ply and demand at that time, which is the
big buying period of the year. This price, of
course, should carry a profit on the cost of
coal delivered at that time. Such a selling
price, therefore, will not only give a current
profit on coal bought currently, but it will give
a much bigger profit on coal bought earlier.
This consideration is important because
prices named in October and November are
likely to determine the price which will be re¬
ceived all through the winter months. There¬
fore, if the retailer gets a good price in Octo¬
ber and November, he is likely to get a price
in the later months which will yield him a
profit, although a small one, on the coal
which he buys for delivery during the winter
and which he sells almost directly out of the
car.
In other words, I recommend a buying pol¬
icy which is to make two distinct classifica¬
tions of coal purchases. One of them is the
early purchases with a big profit. The other
is the later purchases with a moderate profit.
Averaging these two up should give the wide¬
awake and progressive retailer a bigger re¬
turn on his year’s business than though he fol¬
lowed out the prevailing idea and bought coal
only as he needed it or as the buyers took it
from him.
How the “Little Giant” Won.
(Concluded from page 24.)
ing matters, and usually any differences are set¬
tled in a satisfactory manner.
City Ordinances.
I would like to also mention some of the mat¬
ters we have taken up with the city council re¬
cently.
About two years ago a very prominent city offi¬
cial observed a coal wagon being unloaded in the
downtown district in such a manner that consid¬
erable dust and dirt was flying, to the discomfort
of those about. He immediately drafted an ordi¬
nance providing for the saturation of all coal and
coke after being weighed, the ordinance being-
specific that the coal must be drenched, and pro¬
hibiting the weighing of any coal after the wet¬
ting process. This ordinance prevented the city
sealer from carrying out the provisions of the
weighing ordinance, in which we are so much
interested. The ordinance made no provision as
to the condition of the weather, and prescribed
that the drenching process must take place in
freezing as well as warm weather.
It was necessary for the association to point
out the impractical points in this ordinance,^ and
after several lengthy conferences with the judi¬
ciary committee of the city council we were able
to have the matter referred to the department of
public works.
The matter was finally left, with the under¬
standing that all possible precaution would be
taken to avoid creating dust and dirt.
Very recently, in order to avoid congestion, an
ordinance was proposed prohibiting the use of
street car tracks in downtown districts by any
commercial vehicles, during certain hours of the
morning and afternoon. So far as the coal trade
was concerned, it would reduce the efficiency of
teams in the district about fifty per cent, because
during the proscribed hours it would be impossi¬
ble to send a team into the loop district.
After conference with the local transportation
committee and police department we were suc¬
cessful in having the committee recommend that
the subject be made a matter of police regula¬
tion, where it is today.
30
THE BLACK DIAMOND.
[July 10
pubi.ishi:d evbby satttbday by thb
BBACK BIAMONB COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THB BI.ACE DIAMOND COMPANY (INC )
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, July 10, 1915.
INDEX.
Special Articles.
Page
Making a Bigger Profit by Buying Coal Proiierly. ... 21
Exact b'igures Turn Expected Profit to Loss . 22
Some Figures on Anthracite Output . 22
The Coal Company’s Trouble Man . 23
Taxing Premium Plans Out of Existence . 23
The Inside Story of Mow the ‘‘Little Ciant Won”.... 24
Putting a Ketail Coal Business on a Cash Basis . 25
Communications . 26
Bids for and Contracts Let On Coal . 26
J. E. ^litchell’s Silo Coal Pockets at Glenolden, Pa.. 26
Sale of Pittsburgh-Bciffalo Company Properties . 26
Reading Company Wins in United States Court . 27
A New One-Man Drill . 27
Simple Changes Possible in a Furnace . 28
America Arrives as a Factor in Coal Exports . 29
Editorial . 30
News Local to Chicago . 32
Lackawanna Coal Changes . 32
Facts Which Determine Our Export Prospects . 33
Anthracite Tax Case . 35
Market Reports.
General Review and Chicago . 34
Pittsburgh and Detroit . 3.5
Cincinnati and Toledo . 36
Twin Cities, Indianapolis and St. Louis . 37
New Yorx . 38
Philadelphia, Baltimore and New England . 39
Buffalo, Denver and Birmingham . 40
Hocking Valley . . 15
An Ugly Fact or Two.
.■\s the Ohio mines try to work under the
Green anti-screen law, it becomes evident
that, as the urchins say, the miners “spilled
the beans” when they forced the legislature
to pass that bill.
One obvious cost of that law was a strike
which lasted a year in eastern Ohio. The
union miners went on a vacation. The
union mines were closed down.
The miners did not really expect that the
coal consumers would go on a symjjathetic
strike. The trouble is they didn’t think
about that at all. All the miners thought
about was that they wanted to whip the
operators. The spirit of their leaders was :
“I'll show you who is boss around here.’’
W’hen the miners returned to work, they
expected to take up their jobs where they
left off. They expected the operators could
go back to their old customers and resume
the sale of coal. This was their silly child¬
ish dream.
Then the naked truth walked aljroad. The
resumption of mining showed that the mar¬
ket was gone. Somebody else had taken
the business and the Ohio operators could
not recover it. When orders were sought,
it was found that the non-union mines of
West Virginia had them. Eastern Ohio
had been robbed of its business because the
miners refused to work or to let anyone
else work.
Some other Ohio mines did not hold out
against the miners. They accepted the law
and paid what the miners demanded. Even
they started to prepare their coal similar
to the way that is done in some of the west¬
ern states. But the non-union mines did
not do it because they did not have to.
Neighboring states did not do it because
that was not the practice. Thus the Hock¬
ing Valley field was the pioneer in the mat¬
ter of investment for and the cost of
elaborate sizing of coal.
It simply could not be done. Ohio could
not pay its miners more money and add to
the cost of preparation and still compete.
The announcement was made a week ago
that a number of the Hocking mines were
closed down to remain closed indefinitely.
You have there a direct example of cause
and effect. It is an ugly fact, but we must
look at it.
The Hocking operators explain their
move by saying that competing mines in
eastern Ohio have been given the better
mining rate. That is an explanation which
does not explain. The eastern Ohio mines
cannot hold their business at that rate
against the non-union mines of West \’ir-
ginia. The Hocking mines may be out¬
classed, as the operators say, by eastern
( )hio, hut eastern Ohio in turn is outclassed
by West Virginia. How impossible it is,
therefore, for the Hocking \"alley to com-
]3ete wdth West Mrginia.
The closing down of the Hocking ATlley
mines means that under labor domination
their ])rofitable operation is out of the ques¬
tion. This is what it has cost Ohio to be
ruled by the miners’ union.
The miners tried in convention and by a
conference to win their dispute. Failing
there they went to the legislature. The
resultant partnership between labor and
politics proved that while it is possible to
force capital to make concessions to labor,
the force designed to remedy a business
situation cures the ill by killing the business.
Every woman knows that the laws gov¬
erning human actions apply to all men —
except her husband. Every coal man
credits every business — except his — as
being regulated by certain fixed rules.
These mental exceptions explain the
growth of divorce suits and coal company
failures.
Profitable Buying.
Every coal merchant should read the
article by E. H. Irwin on buying which ap¬
pears in this issue. He should take time to
study it until he is sure that he has mas¬
tered not only its facts, but the principles
wdiich it announces.
One principle in particular deserves mem¬
orizing. “Buy at the lowest price and take
your profit the instant there is an oppor¬
tunity.” That is w'orth real money to any
man who wxmts to be a merchant in coal.
Many retailers get coal at a low price.
Alien they have a chance to sell it at a
good price, they do not like to dispose of it.
They seem to wxmt to tantalize themselves
by thinking of the still bigger profit they
are going to get after a while.
Rather than getting the higher price and
the larger profit later, the presence of cheap
coal in a yard is demoralizing to current
jirices. The retailer keeps it always in his
mind. He cannot forget that he has cheap
coal on hand. He is thinking ahvays about
how much he can cut prices if he must.
After thinking of it, he does it. That is,
he lets it level down the price he paid for
the other coal until he has arrived at an
“average” price. Thereafter he is prone to
fix his current selling price on this average
rather than on what a fresh sujiply of coal
would cost. If he would dispose of cheap
coal early in' the fall, he would soon forget
about it. Then the average price would
rise and he would get a profit on all of his
coal.
We have known of instances where dne
bargain lot of coal has caused a dealer to
lose money on every pound of coal sold dur¬
ing a winter. To illustrate how that is
made i)ossible, we will say that a retailer
bought ten cars of coal in July for $1 a
ton. He held it until September, when he
bought ten other cars of coal paying $1.50
a ton. He then said, which was true, that
the average i)rice on his twenty cars of
coal was $1.25.
He sold out the second lot of coal or
that which was bought last, at the equiv¬
alent of $1.25, or at a loss of twenty-five
cents a ton. He then bought ten other cars.
Still using the first ten cars as the cheap
coal in a mixture, he said that the coal in
his yard still cost him on the average $1.25.
Here his calculations were away off. As a
matter of fact, the average price — including
the ten-car lot already sold was $1.41 2-3.
To avoid this and other mistakes, it is
well to take the profit on cheap coal when
you can get it and then forget about it.
Exports of coal are now at the highest
point in our history. This is more than an
incident of the war. It means that Amer¬
ica, which has been trying for foreign trade
for years, has now an introduction. Whether
we hold the business must depend on our
merchandising ability.
Pointedly Put.
Some Chicago retail coal men had gath¬
ered around a table to discuss the business
situation. All of them said that they had
lost tonnage in the last year because of the
times and the weather. J^Iost of them con¬
fessed that they also were losing money be¬
cause prices had been cut right and left.
Ed Klinenberg, a retailer, was in the party.
He expressed his opinion of the latter state¬
ment as follows :
“You men are cutting prices not because
you want to but because die other fellow
does. You are losing money not because
you like to lose it but because the older fel¬
low sets the example.
“All right. Suppose I too set an example.
We will all start from here and walk to
the lake. When I get to the end of the pier,
I am going crazy and will drown myself.
Wall you fellows do the same thing merely
because I set the example? Of course you
will not, because you are not quite so crazy
as you seem to be.
“Still, you will lose money and commit
business suicide merely because the other
fellow takes the lead.
“If the other fellow wants to lose money,
let him. But I am not in business for that
pur])Ose and 1 refuse to follow that sort of
a leader.”
We have never been able to make out
why men who have such destructive policies
as have the price cutters should be referred
to as “leaders.” Generally, a man who
leads has something constructive to offer.
The devil is the only known exception to
this rule since Roosevelt lost his following.
Nevertheless, coal men have deserted the
constructive leaders of the trade and have
gone off after men of the other sort. It
seems today that the whole flock is follow¬
ing the hlack sheep.
Because it outlines a policy which leads
No. 2]
THE BLACK DIAMOND
31
the other way, we like the statement of a
wholesaler who said this week :
“I never sell any chea]) coal. It may be
good coal at that, and it may be in distress
for legitimate reasons. But, when a coal
gets a habit of being in distress, I think of
it the same as I do of a man who is always
in hard luck. I think there is a reason. I
refuse to jeo])ardize my standing with the
trade by passing such coal on to my cus¬
tomers.”
Cash and Credit.
There is a lot of talk these days about
returning to a strictly cash basis in the sale
of coal at retail. That is one way out of a
dilemima. But, the credit system is not
quite so black as it is painted sometimes.
A coal operator told this story, just the
other day, to illustrate his attitude on the
subject :
“My wife and I .were in a store in Cin¬
cinnati about thirty years ago. The clerk-
asked: ‘Shall we charge it?’ We had the
money to pay, of course, but we wanted to
see whether the store would open a charge
account for a couple of youngsters from
the country. We gave our references, etc.,
and there and then opened an account. We
have traded with that store every month
since.”
In those thirty years, this account has
meant thousands of dollars of trade, at
wholesale and retail, to that store. There
was one case where a liberal extension of
credit worked out the right way for the
store.
While on that subject the big Chicago
stores feel, apparently, that credit is a good
thing. For example, the big State street
stores are more liberal on terms, etc., with
their credit customers than they are with
those who pay cash.
It may not have occurred to some, but it
is true, that merchant tailors continue in
business solely because they extend credit.
Thus, the concrete evidence in favor of the
credit system is striking.
Here is one thing which must not be
overlooked. The man who sells anything
must satisfy his customer or he does not
hold the trade. If he does not satisfy a
credit customer he knows it. If he does
not satisfy a cash customer, he may never
know it : the man will simply go elsewhere.
When a man opens an account, he and the
merchant expect that it will be active.
When, therefore, the account is closed or
becomes inactive, the merchant knows that
something is wrong. Thus the trend of
credit accounts proves a sure indication
whether the store itself is on the road to
popularity with its patrons.
The man who sells only for cash, has no
way of knowing how many customers he is
losing because his service is not good or
because his clerks are not courteous.
That which is against the credit .system
may be summed up under three headings :
First, bad accounts are made by a pro¬
miscuous extension of credit.
h'or one thing, there should be no pro¬
miscuous extension of credit. For another
thing, bad accounts in annoying volume
mean a poor system for collecting credit in¬
formation. Thus the first objection is not
valid because it means that a man is con¬
demning a method of doing business be¬
cause he is trying to do something for
which he is not equip])ed.
Second, interest money is lost because
those who buy on credit pay slowly.
This is an indictment against the collector
or merchant himself rather than against the
credit system. A man has no right to con¬
demn any system publicly, merely because
he will not do his business properly.
Third, it is an imposition upon the prompt
pay customers to ask them to pay a higher
])rice on coal to make up the losses incurred
by those who refuse to pay their bills.
Because the coal man has not improved
his methods to overcome these age-old de¬
fects in our business, is no reason for aban¬
doning the credit system altogether. In¬
stead there is need to keep it alive that the
merchant in a struggle to hold the credit
customer on the books will learn to please.
In this way, and in no other, can a man
make a merchant of himself.
Use Your Own Figures,
A coal man who does a big business made
this astounding confession one day this
week :
“I have been making the common mis¬
take. When some one raised the question,
I said that ‘business is rotten.’ When any¬
body asked me,H said I was losing money.
1 talked the way everybody else did because
it has become a habit.
“On the first of July, the statement from
our auditor was handed in. This accounted
for the business for the first six months of
the year compared with the first six months
of 1914. 1 found that for April and May,
I was ahead of last year by $2,700 in cash.
The comparison was with 1914, the best
year in ten. The June figures were just as
encouraging.
“We made a gain in tonnage of five per
cent in the two months of the year which
are considered the worst. If we continue
on that basis merely, we will show a gain in
tonnage of thirty per cent for this year.
This compares with the business for 1914
when the gain was about twenty-five per
cent over 1913.
“That is, the facts do not bear out my
pessimistic remarks about business.”
There is no intention here to say that
everybody’s business is increasing at any
such rate. This business man made an ex¬
ceptional showing. However, it is still good
advice to suggest; If disposed to make any
statements about business in general, base
these on the records of your own books and
not on what other people tell you about
things in general.
This is really important for the reason
that the period of de])ression is psychologi¬
cal. That is, business bas been depressed be¬
cause people have thought it would be.
I'rom thinking bad business, we have come
to have bad business. If we reverse the
process and think good business and talk
good business, we will get it.
However, if we let other people dictate
what we shall say and think, we are going *
to continue to have bad business. There¬
fore, we earnestly advise coal men to think
about their own business in terms only of
what their own books show. We recom¬
mend that all talk be based upon the actual
record and not on what somebody has led
somebody else to think.
As business shows an increase, we will
have something cheerful and optimistic to
talk about. Fvery man’s mite of optimism,
added to every other man’s mite of oj)tim-
ism will soon bring about an im])rovement
of business in general.
The experiment is worth trying because
it costs nothing. It costs no more to talk
facts than it does to talk wrong theories.
It costs no more to talk about small profits
in an o])timistic way than it does to talk
about imagined los.ses in a pessimistic way.
No one is honest with himself or with his
associates unless he talks about what he
knows instead of about what other people
have led him to think.
Reserve Force.
The world is getting a good business
suggestion from the manner in which the
generals of Euroj^e are maneuvering their
fighting machines. He is either a fool of
a general or he is in terrible straits if he
puts his whole fighting force on the firing
line at one time and keeps nothing in re¬
serve for a sudden emergency.
I'here is a first rate example of how a
coal man should consider his business.
One of the primary rules of investment is;
“Put your money in a place where the
main line can be reinforced by some other
line in case the leader meets with a seri¬
ous reverse.” Under this rule, one of the
best business investments is in a general
merchandising concern, such as a depart¬
ment store. The leading line may be dry
goods, but the merchant has recourse to
helpful activity in a hundred or even a
thousand other lines. Another good in¬
vestment is a steel producing company
as organized today. If anything happens
to the finished steel business, the owner
has recourse to one of the processes of
conversion to get a profit.
Ai)plied to the coal producing, the op¬
erator must concentrate upon one line of
activity. We have not developed, as they
have in England, an assortment of busi¬
ness around a coal mine. Usually our
one line is devoted to some specific use or
to sale in some fixed territory. Thus many
companies devote themselves almost ex¬
clusively to the lake trade. If anything
happens to make the lake trade unprofit¬
able, the oi)erator is without reinforce¬
ment unless he is keeping himself in touch
with all rail trade.
.\nother Cfjinpany devotes its product,
it may be, mainly to railroads and to pub¬
lic utilities companies. If anything hap¬
pens to one big contract that operator is
in an embarrassing ])osition unless he is
making a steady appeal to another class
of buyers.
Applied to the retail trade, the situation
is somewhat different. If a retail coal
merchant deals in nothing but coal, he is
de];)endent for his prosperity upon the
fickle element of the weather. If the
weather turns against him, as it did last
winter, he is practically out of business
and out of ])rofit for a year unless he car¬
ries some other line. Some of the larger
companies hold the ice business in re¬
serve to hel]) out the coal business and
still others rely upon building material.
It is hardly likely that all of these things
will fail at one time, 'riuis if one thing
fails, the money invested has a chance of
getting returns by extraordinary activity
in another line.
W’e do not consider it a wise i)olicy to
put all of one’s investment ui)on one line
of activity which is likely to fail. An in¬
vestment needs reinforcement as much as
docs the firing line of an army. It is part
of the business general’s duty to provide
that reinforcement.
32
THE BLACK DIAMOND
[July 10
News Local to Chicago.
A visitor in Chicago this week was John A.
Buell of Pontiac, Ill.
The next tournament of the Coal Trade Golf
Association will be held at the Evanston Golf
Club on July 14th.
The receiver for Rasmusson, Balnies &
Burke has paid a first and final dividend of
two per cent to its creditors.
E. C. Pratt, the northwestern sales agent of
the Purity Coal Company was a Chicago
visitor on Friday of this week.
Among the Chicago visitors within the last
week was William Forschner, manager of the
Forschner Coal Company of Linton, Ind.
One of the visitors to the Chicago coal trade
on Tuesday of this week was E. M. Peters, pres¬
ident of the Hamilton, Otto Coke Company of
Hamilton, Ohio.
Dudley Gregory, son of the well known
George Gregory of Marshalltown, Iowa, has
been "added to the Iowa selling staff of the
Purity Coal Company.
Fred Harwood of The New Kentucky Coal
Company, is spending his energy and the week
at Birmingham, Alabama, in connection with
the Alabama rate case.
The Mancourt-Winters Coal Company of
Detroit, has opened a branch office at No. 110
South Dearborn street, with Benjamin M.
Ferguson in charge as manager.
C. M. Moderwell, president of C. M. Moder-
well & Company, took an outing over the holidays
by attending a rate hearing at Birmingham, where
the commission is now going into the proposed
rate advance.
C. D. Caldwell of the By-Product Coke
Corporation returned the latter part of last
week from his trip through the east, which
embraced Cincinnati, the mines, Cleveland and
Detroit.
The general outing committee of the Chicago
Coal Merchants’ Association held a meeting in
the association rooms on Thursday morning to
decide definitely on the place and time for hold¬
ing the outing. After having looked over many
amusement parks, it was finally decided to go to
Fox River Park near Aurora. The date is
August 14th.
Herbert H. Taylor of the Taylor Coal Com¬
pany, left the early part of the week for the
northwest. Mr. Taylor endeavors to visit
every coal buyer that he does business with at
least once a year.
A visitor to the Chicago coal trade on Tues¬
day was Mr. Wynne of the Buser Concrete Con¬
struction Company of IMount Morris, Ill. One of
the interesting points about his visit was that he
left a coal contract behind him.
A. O. Tandy of the Franklin-Tandy Coal
Company, was on a trip to the mines of the
Logan Pocahontas Fuel Company in Mac-
Dowell county, W. Va., within the week. He
was accompanied by E. S. Lovejoy of O. S.
Richardson & Co.
H. W. Weeks, the fuel engineer and salesman
for the Peabody Coal Company, having com¬
pleted a severe test of coal on locomotives and
having landed a contract of some size, took an
outing over the Fourth, which he spent in a
three day automobile trip to Indiana.
Carl Scholz, president of the Consolidated In¬
diana Coal Company, returned the middle part
of this week from a fishing trip. Instead of go¬
ing to the Wisconsin resorts, as is customary, he
knows of a place in Arkansas where the fishing
is good and he and his family went there for
about a week.
George F. Getz of the Globe Coal Company
spent the Fourth at his farm in Michigan, where
he went at the conclusion of a recent tour of in¬
spection of some properties in West Virginia.
On the latter he was in company with some New
York financiers and some men of influence in
West Virginia.
The Chicago Coal Merchants’ Association was
to have held a meeting on Tuesday of next week,
but out of consideration of the fact that the
annual pow-wow of the Order Kokoal is being
held here next week the meeting was abandoned.
The next meeting will be held subject to call,
perhaps two weeks later.
I. I,. Runyan, secretary of the Illinois &
Wisconsin Retail Coal Dealers’ Association
returned the latter part of this week from
Galesburg, where on Tuesday night he at¬
tended a district meeting of retailers represent¬
ing Galesburg, Monmouth, Abingdon, Knox¬
ville and DeLong. There were thirty-three re¬
tailers in all present at the meeting which was
an enthusiastic gathering. In fact the success
of the coal club at Galesburg is so pronounced
that Monmouth decided to organize one at
once and the enthusiasm for association work
became so strong that five new members were
added to the Illinois & Wisconsin membership
list.
A novel plan to encourage thrift among
wage-earners in every trade and business in
Chicago, through which corporations will
agree to pay an amount of interest, in addi¬
tion to that paid on savings accounts by the
banks, to employes who are willing to de¬
posit part of their income, has been decided
upon by a number of prominent corporation
men and bankers of this city. The Consumers
Company, with a pay roll of about $10,000 a
day, is the pioneer in the plan. President
Fred Upham has announced that his concern
will agree to allow 1 per cent annually on
all savings accounts of employes, in addition
to 3 per cent allowed by the bank in which
the employes may elect to place the funds.
Carl Scholz attended a meeting at Des
Moines on Tuesday of the operators in the
state of Iowa. It seems that Iowa is be¬
coming impressed with the fact that some of
the other coal producing sections are taking
away business which belongs -to it. The Iowa
operators believe that the difficulty is that the
good qualities of Iowa coal have not been
generally known, therefore, an organization to
promote information about Iowa coal -was
formed. This will get some money together
at once, and this will be used to hire Sn
efficiency engineer who will show people how
to burn that coal and it will also pay the ex¬
penses of an Iowa man who is going to write
some things afcout Iowa coal for the farm
papers. The new organization was effected and
a committee of four was appointed to map
out the details.
Some progress has been made recently in the
matter of forming a selling agency for Indiana.
It will take two or three weeks to get it in
shape to act, but an organization already has
been effected. The name is the Indiana Coal Sales
Company. The officers are : President, A. M.
Ogle; vice-presidents, E. D. Logsdon, J. K. Der¬
ing and David Ingle ; secretary, P. H. Penna ;
and treasurer, M. L. Gould. The executive com¬
mittee are J. C. Kolsem, W. S. Bogle, H. A.
Huskey, W. J. Freeman, Plugh Shirkie and H. B.
Talley. The directors are: John Oliphant, Oli-
phant-Wasson Coal Company; H. B. Talley, Coal
Bluff Mining Company ; W. S. Bogle, W. S.
Bogle & Co., Inc. ; Hugh Shirkie, Shirkie Coal
Company; A. M. Ogle, Vandalia Coal Company:
J. K. Dering, J. K. I)ering Coal Company ; David
Ingle, Ay reshire Coal Company; W. J. Freeman,
Green Valley Coal Company; J. C. Kolsem, Jack-
son Hill Coal & Mining Company ; E. D. Logsdon,
Indian Creek Coal Company; M. L. Gould, Gould
Coal Washing & Mining Company ; J. T. Connery,
Miami Coal Company; Harley Huskey, Worth-
Huskey Coal Company; Carl Scholz, Consoli¬
dated Indiana Coal Company; H. M. Ferguson,
Clinton Coal Company; Janies Persons, Knox
Coal Company; Paul Zimmerman, American Coal
Company; Jabez Woolley, Woolley Coal Com¬
pany, and Thomas Byers, Bicknell Coal Company.
Chan. F. Lemmon is chairman of the recep¬
tion committee appointed to welcome the dele¬
gates to the annual pow-wow of the Order
Kokoal, which is to open at the Auditorium
on next Tuesday, July 12. The members of
the order in Chicago are getting ready to ex¬
tend a characteristic Chicago welcome to the
visiting coal men who are expected to- come
in rather large numbers. Mr. Lemmon’s re¬
ception committee, which will be made up of
some of the best known coal men in Chi-
ca.go, will be on hand at the Auditorium at
two o'clock. This means that all details for
the coming annual pow-wow and coal con¬
vention have been taken care of down to
even the point of entertaining the visitors.
Late last week Ed. Smith, the imperial pictor,
made a trip to the printers and had several
thousand copies of the program struck off.
It is a program filled with big speeches by
men who know what they are talking about,
and who will be able to say at lot of things
to the coal trade that are worth listening to.
Among those who are on the program are
C. M. Moderwell W. S. Bogle and A. J.
Moorshead — all of them well known for their
ability to say things that are worth while
and to say them well. On the program B. L.
Shepard, the accountant, will make his first
appearance as a public speaker, but he has
something to say which is distinctly worth
while, if the annual pow-wow had nothing
else to attract the visitors than just merely
the program it would be distinctly worth while.
However, there are some other features, among
them the launching of the new purpose of
the order, which was arranged for and an¬
nounced at this time last year. It is always
interesting to see any organization take on a
new purpose or try to do something that is
different and new and the Order Kokoal has
espoused a purpose and is going to try to
give that purpose vitality at this annual meet¬
ing and coal convention. It will, therefore, be
one of the interesting things of the trade in
a year and the working out of the experiment
will be watched with more than common in¬
terest.
Lackawanna Coal Changes.
The Delaware, Lackawanna & Western Coal
Company had its sixth annual meeting on
Thursday of last week. At this meeting in
addition to the regular two and one-half per
cent quarterly dividend on $6,590,000 stock,
they declared an additional cash dividend of
fifty per cent. The coal company has paid
regular annual ten per cent dividends since
it was organized. The directors at this meet¬
ing took formal notice of the recent Supreme
Court decision, and announced the plans in¬
tended to bring the Delaware, Lackawanna &
Western Coal Company within the mandate
of the Supreme Court. The following an¬
nouncement was made by the company:
“Steps were taken to comply promptly with
the recent rulings of the United States Su¬
preme Court.
“The board authorized the officers of the
company to execute a new contract which
should conform to all matters questioned by
the Supreme Court as either illegal or ob¬
jectionable.
“The only directors of the coal company
who are directors of the railroad, viz.; Messrs.
W. H. Truesdale and George F. Baker, Jr.,
resigned from the board, and Messrs. C. D.
Norton and T. J. Mumford were elected in
their places.
“E. E. Loomis, president of the coal com¬
pany, tendered to the board his resignation
to be accepted as soon as his successor can
be selected, and arrangements were made
to procure separate office accommodations
without delay.’’
At this meeting it was stated by Mr. Loomis,
the retiring president of the company, that
the coal company had actually changed its
original contract w-ith the Lackawanna a year
ago. The first changes were made to con¬
form to suggestions made by the agents of the
Department of Justice, when the coal case
was tried in the lower Federal courts. The
Supreme Court descision took no cognizance
of the fact that the coal company had made
any changes. This decision was made on the
contract which prevailed when the case went
to trial in the lower courts. Mr. Loomis said:
“The railroad company owns the mines and
sells the product to the coal company. In
everything we have tried to be open and above
board our books were always accessible to
the Department of Justice, and we employed
the best lawyers available to tell us
how to obey the law. If we have erred,
we are only too anxious to correct our mis¬
take. So far as the earnings of the coal com¬
pany is concerned, I forsee no likelihood of an
adverse effect at this time. The sixty-five per
cent clause, will, of course, be eliminated. If
the lawyers suggest any other changes, they
will also be made. We are going to try to
do just what the Supreme Court wants us to
do. We have nothing to conceal and we make
no objection. We are glad that we have a
final decision to go by.’’
The contract for the coal and coke supply for
the public schools of Uniontown, Pa., was
awarded last week to John A. Whyel & Son.
Their bid was for run of mine, from the Snyder
mines at seven cents per bushel, and soft coke
at $3.00 per ton of 3,000 pounds net.
No. 2]
THE BLACK DIAMOND
33
Facts Which Determine Our Export Prospects.
The Welsh Coal Situation.
Latest advices from Cardiff state that the
refusal of the government to grant licenses
for exporting to countries outside of the allies
and British colonies is still the all-absorbing
topic. It is stated that as result of this dras¬
tic policy which the coal committee of the gov¬
ernment have up to the present been follow¬
ing that the market for all descriptions of
coal is considerably restricted, and that
prices have suffered consequently. Some of
the coal men hold that the general trade of
Great Britain will suffer very largely, espe¬
cially as regards to South American business,
due to the restrictions placed upon this coun¬
try as well as other neutral countries, because
of the loss of the great quantity of grain, meat
and other products that England imports, and
which is quite an attractive return cargo for
ships. Concerning prices, it is pretty difficult
to quote current prices at the present time.
The quotations for the cheaper grades of
Admiralty coals is given at about 30s, though
this price is said to be considerably reduced
by some of the middlemen. Small coals are
very weak, especially for cargo qualities. One
reason given for this is that at present there
is a very large number of loaded steamers at
the principal French ports that have been un¬
able to get discharged. At that writing there
were said to be no less than fifty steamers
waiting for their turn at the coal docks at
Bordeaux, and that consequently a great deal
of demurrage was accruing. For ordinary
cargo qualities 16s. Gd. to 17s. 6d. is said
to be ruling prices. Best bunker smalls are
quoted at 21s.; best ordinaries at 20s to 20s. 6d.,
and cargo qualities at 16s. to 17s. 6d. In the
Monmouthshire coals. Black Veins are quoted
at 28s. to 30s.; Western Valleys 26s. to 27s.;
Eastern Valleys at 23s. to 25s.
Current freight rates from Cardiff are about
as follows: To Algiers, 23fr.; Genoa, 25s. to
25s. 6d.; Bilbao, 14s. sd.; Barcelona, 21s. 6d.;
Havre, 10s. 6d.; Las Palmas, 20s.; Lisbon,
15s. 6d.; Marseilles, 25fr. to 25I"2fr.; Malta, 20s.;
Oporto, 16s. 3d.; Port Said, 23s. to 23s. 6d.;
River Plate, 26s.; Savona, 25s.
Recent Coal Freight Charters.
Steamer Plieada (Dutch), Norfolk to Parana, coal, p. t.,
July.
Steamers Primo (Ital.) and Giiisseppi Accame (Ital.),
Atlantic Range to west coast of Italy, coal, p. t.
Steamer Mariteres (Span.), Virginia to Casa Blanca,
coal, 40s., July.
Schooner George D. Edmonds, Philadelphia to Sum-
m.erside, P. E. I., coal, p. t.
Steamer Ulidia (Br.), Baltimore to Alexandria, coal,
p. t.
•Steamer Egda (Nor.), Philadelphia to Cuba, coal, p. t.
Steamer St. Andre (Fr.), Philadelphia to St. Nazaire,
coal, p. t.
Steamer Starfond (Nor.), Philadelphia to Havana,
coal, p. t.
Schooner Augustus N. Snow, Norfolk to Rio Janeiro,
coal, $8.
Schooner Eleanor F. Bartram, Norfolk to Rio Janeiro,
coal, p. t.
Steamer - fBraz.), Atlantic Range port to west
coast of Italy, coal, 42s., July.
Steamer Stormount (Br.), Newport News to Havana,
coal, p. t.
Steamer Urd (Nor.), Baltimore to .Stockholm, coal, p. t.
Steamer Clumleigh (Br.), Philadelphia to Barcelona,
coal, p. t.
Steamer Geddington Court (Br.), Philadelphia to a
-Spanish port, coal, p. t.
Steamer Camilla (Nor.), Baltimore to Banes and Pres¬
ton, coal, p. t.
Schooner Clara Davis. Virginia to Brazil, coal, p. t.
Schooner \Vm. E. Litchfield, Norfolk to Porto Plata,
coal, $3.50 and port charges.
Steamer Campeiro (Ital.), Baltimore or Virginia to west
coast of Italy, coal, 42s., July.
Foreign Freight Rates.
W. W. Battie & Co., Produce Exchange,
New York, report as follows under date of
July 6.
Freight conditions are practically the same
as a week ago, and although we have chartered
a number of steamers for export coal since
our last report, the rates have varied but
slightly from previous quotations. A steamer
was chartered today from a U. S. port north
of Hatteras to Genoa at 39s. Plate orders
from here are accumulating, which rather sur¬
prises us as we understand that grain freights
from the Plate have considerably improved re¬
cently.
We would quote freight rates on coal by
steamer as follows:
Marseilles, about . 36s.
West coast of Italy, about . 39s.
Barcelona, about .
(Spanish dues for account of cargo.)
Montevideo, about .
Buenos Aires or La Plata, about .
Rosario, about .
Rio, about .
Santos, about .
(Consignees paying docas dues.)
Valparaiso or Callao .
Havana .
Cardenas or Sagua, about .
Cienfuegos .
Port of Spain, Trinidad .
St. Lucia, about .
St. Thomas .
Barbados .
Kingston .
Curacao, about . (and p. c.)
Santiago .
Guantanamo .
Demerara, about . .
Bermuda, about .
Vera Cruz .
Tampico .
35s.
34s. 9d.
35s.
37s.
36s.
37s.
$6.75@7.00
2.00@2.2.}
2.75
2.75@3.00
3..50@3.7.5
3.50
3.00@3.25
3.50(®3.75
2.75(®3.00
3.50
2.50@3.00
2.50@3.00
4.25
3.00
3.50@3.75
, 3.50@3.75
Hampton Roads Exports.
Exports of bituminous coal from the Hamp¬
ton Roads ports for June, 1915, totaled 604,-
695 tons, as compared with 209,064 tons for
June, 1914, as follows:
LAMBERT’S POINT
1914.
Genoa, Italy . 22,300
Cagliari, Italy . .
Naples, Italy . 12,800
Leghorn, Italy . 5,600
Savona, Italy . . .
Santa Lieberata, Italy .
Torre Annunziata, Italy....
Catania, Italy .
Spezia, Italy .
Messina. Italy .
Palermo, Italy .
Puerto Ferrajo, Italy .
Civita Vecchia, Italy .
Lisbon, Portugal .
Seville, Spain .
Bilbao, Spain .
Tarragona, Spain .
Marseilles, France .
Piraeus, Greece .
Port Said, Egypt .
Casa Blanca, Morocco .
Amsterdam, Holland .
Rotterdam, Holland .
Stockholm, Sweden .
Las P'almas, G. C, I . . .
Dakar, French West Africa
Lagos, Africa . .
Sierra Leone, Africa .
Forcados, Africa .
St. George, Bermuda .
San Juan, Porto Rico .
St. Lucia, B. W. 1 . 5,950
Bridgetown, Barbados . 3,727
Georgetown, Demerara .
Port of Spain, Trinidad .
Curacao, D. W. 1 . 4,573
Havana, Cuba .
Vera Cruz, Mexico .
Iquique, Chile .
Salaverry, Peru .
Buenos Aires, A. R . 2,215
La Plata, A. R . 1,800
Montevideo, Uruguay . 6,172
Rio de Janeiro, Brazil . 6,300
Pernambuco, Brazil . .
Para, Brazil . .
Cristobal, Canal Zone . 22,125
Kingston, Jamaica . 2,700
Coronel, Chile, for orders . 5,781
Valparaiso, Chile . 5,075
Venice, Italy . 20,600
Brindisi, Italy . 6,500
Trieste, Austria . 4,244
1915.
81,342
17,848
22,724
5.800
12,742
5,355
15,873
5,500
5.993
6,900
8,305
18,991
5,172
3,254
1,369
5,646
5,798
7,49:5
11,180
8,007
963
6,002
4,834
6,833
3.800
4,852
5,000
998
4,952
1,125
2.994
4.541
8,481
1,697
2,973
5.541
1,522
20,948
3,414
750
550
11.738
6,014
6,755
40.739
4,593
1.640
47,708
138,462
NEWPORT NEWS.
1914.
Genoa, Italy .
Naples, Italy . 18,093
Sardina, Italy .
Italy, any port .
Cartagena, Spain .
Marseilles, France .
Casa Blanca, Morocco .
St. Lucia, B. W, 1 . 13,709
Bridgetown, Barbados . 1,425
Port of Spain, Trinidad . 9,967
Santiago, Cuba . 2,620
Havana, Cuba . 8,201
Cardenes, Cuba . . .
Guantanamo, Cuba .
Vera Cruz, Mexico . 3,938
Buenos Aires, A. R .
Montevideo, Uruguay .
Fort de France, Martinique
Callao, Peru .
Rio de Janeiro, Brazil .
Pernambuco, Brazil .
Para, Brazil .
Manzanillo, Cuba . 1,768
St. Thomas, D. W. 1 . 4,575
Ceara, Brazil . 184
467,689
1915.
14,445
7.058
5,081
835
5,654
1,385
5,545
8,661
4,851
900
1,066
5,040
5,213
4,641
2,593
45,131
2,082
1,007
67,000 121,188
SEWALL’S POINT.
1914. 1915.
Spezia, Italy . 5,764
Buenos Aires, A. R . 4,190
Rio de Janeiro, Br.izil . 5,861
Para, Brazil . 1,984 .
Kingston, Jamaica . 1,618 .
3,602 15,818
The aggregate total of exports from Hamp¬
ton Roads for June, 1915, was 604,695 tons,
as compared with 209,064 tons for June, 1914,
showing a radical increase of 395,631 tons.
French Coal Production.
A recent Paris newspaper cable tells of the
coal situation in France, as follows :
“The coal question in the first six months of
the war was perhaps the greatest industrially
that the government was called upon to answer.
France got most of her coal from Germany and
Belgium, and her northern provinces contributed
their share. About 20,000,000 tons of foreign coal
were needed in peace times to make up the total
consumption of about 60,000,000 tons.
“For the first five or six weeks of the war the
production of coal simply ceased, owing to the
lack of rniners and transportation, and a danger¬
ous deficit arose, which was overcome by impor¬
tations partly from America but chiefly from
Great Britain. Then the government took hold,
supplied the mines with enough men to carry on
the work and provided means of transport. Bit
by bit the situation improved, and gradually it is
approaching the normal.
“French mines are now producing 20,000,000
tons, or half the normal domestic output, and
inasmuch as the war has reduced the annual
consumption to about 35,000,000 tons England
will be called upon for only 15,000,000. The price
of coal increased from twenty-five to thirty per
cent, but it has fallen somewhat, and is expected
to go considerably lower.”
Baltimore June Exports.
Exports of bituminous coal from Baltimore
for the month of June 1915, were as follows:
Country —
Egypt .
Italy .
Spain .
France ....
Greece ....
Sweden . . .
Uruguay . . ,
Argentine . .
Brazil .
Guatemala .
Cuba .
Tonnage.
. . 21,223
. .127,744
.. 10,045
. . 11,275
. . 5,592
.. 6,111
. . 8,882
. . 98,516
. . 9,705
. . 2,757
.. 12,949
Total
314,799
Export Trade Briefs.
Of the total exports of coal from England
during May the average value of large coal
exported was 20s 6.05d; through-and-through
(unscreened), 14s 7. 2d, and small coal, 15s
9.7d. The average value of all kinds of coal
exported was 17s 8.7d, an increase of 7.4d as
compared with the previous month.
The South Wales correspondent of the
Colliery Guardian says in its issue of June
18th: “The practical prohibition of coal ex¬
ports to South America — indeed, to neutral
areas generally, for there are very few left
— opens out a question of highest moment,
because of the opportunity thereby afforded
to Americans. Coincident with prohibition is
the much higher cost of production which is
due to limitation of output and greatly in¬
creased wages, with higher price of all
requisites. It is feared that once the Ameri¬
can coal gets into the South American mar¬
kets, we shall have much difficulty in ousting
our competitors; and not only the coal trade,
but also the shipping, corn, and other indus¬
tries must be seriously affected through lack
of steamers for return cargoes. In addition.
American competition in the Mediterranean
becomes a factor to be reckoned with.” Con¬
tinuing, this correspondent states that the
government and Allies are taking probably
ten times the quantity of Welsh coal which
the Admiralty takes in peace times, and have
the first call upon all coals that is available.
Continuing, he says: “In the course of dis¬
cussion on this very important subject, opin¬
ion on the Cardiff Exchange opened out into
an expression of doubt as to what may happen
when the Panama Canal route becomes avail¬
able for steamers. Where on any particular
line it proves cheaper to run via Panama,
there is every prospect of Americn coal oust¬
ing British for bunkering purposes. As to
Australia and New Zealand, it may very well
be that the cost of bunkers will become a
determining factor. The American Govern¬
ment have had exhaustive inquiry made on
this point, their conclusion being that cheaper
coal will determine the westward route via
Panama as against the eastward route through
the Suez Canal, the .'\merican coal being
much cheaper.”
34
THE BLACK DIAMOND
[July 10
General Review.
Coke Production Increases, Exports are
Larger and Sales at Home
Are Heavy.
A statement just issued 1)y the Coniicllsville
Courier shows that coke production for the sec¬
ond (luarter was twenty-five per cent heavier
titan for the first, and that output is increas¬
ing; also that current demand is heavy and over
the holidays spot coke brought a premium of
fifteen cents a ton.
A statement coming from Baltimore and
New York is to the effect that exports are
now nearly 100 per cent heavier than they
were three months ago and are increasing.
A statement in nearly every market is that
the current buying of domestic coal is heavier
than it has been in five months, indicating a
revival of business wdth the retail dealers.
Some good-sized contracts are being closed
for steam coal.
In New York the anthracite market has
strengthened a little because some of the
mines were closed down for the entire week
over the holidays. In bituminous there is some
accumulation of unsold coal at tidewater, and
therefore, a little weakness.
The situation in Philadelphia has improved
materially. The holiday cut down shipments,
while an increased demand for bunker coal
took up the accumulation. The market gained
strength ciuickly, rising fifteen to twenty cents
a ton in a few days. The anthracite trade on
the contrary has been very dull, the market
being off to an unusual extent.
According to Baltimore advices the holiday
brought no annoyance to coal men in that
territory, but rather something of relief. The
offshore movement has been rather heavy, hut
also there has been quite a free movement of
coal from the mines to the piers. A little lull
which would permit the clearing up of the ac¬
cumulation was welcomed by the trade. The
export demand showed a decline for the
last week. Sales totalled 42,200 tons of cargo
and 6,442 tons of bunker coal. Chartering for
the last week was not so extensive as recently,
but this is considered a lull in the trade rather
than a decrease as contracts on hand will con¬
tinue shipments at the present rate for some
time. ,
The movement of anthracite by lake through
Buffalo for June was 618,236 tons as com¬
pared with 805,879 tons for June, 1914. How¬
ever, shipments to July 1st this year, aggre¬
gated 1,420,378 tons compared with 1,409.32.'>
for the corresponding period of 1914. The
local demand is quiet because more factories
are taking steam coal, hence the market is
improved in both tonnage and price.
The Pittsburgh report graphically describes
the improvement in the trade there as in¬
visible but evident.” That is, there is some
improvement, but it is pretty hard to measure
and what there is of it is not so noticeable now
because the home trade and the local steam
trade are in the summer vacation period, leav¬
ing only the lake trade to absorb the major
portion of the output, and this is not as brisk
as it might be. The market is helped out by
shipments into the export trade by an increase
in coke production and by heavy use in steel
mills. River trade is quiet.
In Cincinnati an improvement is noted m
tonnage and price in both the domestic and
steam departments. It is not anything
astounding, but yet it is noteworthy Iioth in
smokeless and splint coal.
Indianapolis records the fact that consump¬
tion of coal has been cut down by labor trou¬
bles in Indiana and Chicago, hence the market
is even a little more quiet than it has been re¬
cently. Prices on the whole are unattractive.
In Chicago there was a general upturn in
the trade. The operators of Indiana and Illi¬
nois, with a few exceptions, named prices on
July 1st, which made an advance of fifteen
cents a ton on the three domestic sizes. This
was accompanied by a reduction of five to
ten cents in fine coal prices. At the same
time sales increased perceptibly and on the
average the mines are doing a half a day a
week more than they were. It looks as though
the fall buying movement had started about
two weeks earlier in the western territory.
The eastern coals on the Chicago market are
not quite so active.
Chicago Market.
Retail Buying Starts and Prices Are Im¬
proved, But Screenings Are a
Trifle Easier.
Office of The Black Diamond,
Chicago, July 8.
The Chicago market for this last week has a
better tone, everything considered, than it has
had for a year. There are still some weak spots
in the market, but it is generally true that oper¬
ators are more hopeful. Retailers are taking
more coal and prices are better today than they
have been for a long while.
This starts with the fact that retailers are
beginning to put coal in storage. Some orders
are placed for immediate delivery ; some an¬
ticipate delivery later in the month. The re¬
tailers are committing themselves, and the op¬
erators are getting better prices.
It seems true that the general announcement
of an advance in price, effective July 1st, had a
stimulating effect all along the line. The advance
warned all retailers that the fall season was ap¬
proaching. Also, adherence to the price, which
was quite general, gave retailers an idea that
the operators are in earnest. The air has been
cleared definitely within the last week.
For the time being, anthracite is slow. This,
however, is expected at this time of the year.
The retailer can get this month a discount of
only twenty cents a ton from September circu¬
lar and does not consider that attractive. Thus,
July is always rather a dull month in that trade.
However, the business is not much lighter now
than it generally is at this time.
The smokeless trade is still a little slow. Sales
agents have been trying to get the retailers to
take in coal while it is plentiful and while
transportation is easy. The dealers are not in¬
terested, largely because the real estate agents
have not yet begun to buy. Mine run is kept
firm in the meantime by being withheld from
the market. The circular price is still $1.25.
This is being maintained. On July 1st the price
on lump and egg advanced to $2 a ton. The
supply, however, is short, and already premium
prices of ten to fifteen cents a ton are being ob¬
tained. The market is strong, with prices up to
Thursday as follows ;
F. O. B. F. O. B.
Smokeless— Chicago. Mines.
Mine run . $3.30 $1.2.5
Lump and egg . 8.05 2.00
Somerset county coal, which follows the
smokeless market closely, is not active, for obvi¬
ous reasons. The operators are holding firmly
to circular price. Very little coal is being shipped
west, and none of it, this week, has been up to
demurrage. Prices remain about firm as follows :
F. O. B. F. O. B.
Somerset County— Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@3.95 1.70@l.t)0
Hocking coal is quiet. The week developed
no change in situation, demand or price. The
market up to Thursday was :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
154-inch lump . $3.15 $1.50
There are two markets on Kanawha gas and
splint. A lot of cheap coal is on the market.
Some of the lump sells for ninety cents or $1.
This kind of splint has been getting a reputation
lately of such a character that the better houses
will not handle it. Better grades of splint are
selling at a minimum of $1.15, and some few
sales have been made up as high as $1.3.5. Prices
on the better grades on shipments direct from the
mines up to Thursday were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
154-iDch lump . $3.05@3.13 $1.15@1.2.)
The eastern Kentucky market has shown all
kinds of prices. For the summer, some of the
operators have abandoned the production of
block coal as that has been understood hereto¬
fore. Domestic lump includes now what was
formerly block and lump coal. The price on
this comlnnation size has ranged all the way
from $1.25 up to $1.75. Some operators are
making a straight egg coal, while others are
mixing the egg and the nut. The prices have
been variable on that account. Prices np to
Thursday were : „ ^ „
F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.t5@3.G5 $1.25@1.j5
£gg . 3.00@3.15 1.10@1.25
Franklin county prices advanced generally fif¬
teen cents a ton on the first. The lump, egg and
F. p. B.
Mines.
$1.50
1.50
1.50
1 35
1.10
.80® .85
No. 1 nut are now being held at $1.50, and the
No. 2 or special stove is now held at $1.35. The
advance in price proved a stimulus to the trade.
That is, the operators got more money for their
coal and got more orders at the same time. The
latter came because the retailers were warned by
the advance that fall was approaching and be¬
gan to get some coal in storage. The domestic
sizes have been moving fairly well, but there has
been no improvement in the demand for the
steam sizes. .-\s a result, screenings prices have
eased off a trifle, being (luoted today at eighty
to eight\-five cents a ton. Prices up to Thursday
were :
F. O. B.
Franklin County— Chicago.
Lumj) . $2.55
Hgg . --55
No. 1 nut . 2.55
No. 2 nut . 2.40
Mine run . 2.15
2-inch screenings . 1.85 @1.90
Williamson county operators advanced their
prices on the first of July to $1.50 for the lump,
egg and No. 1 washed and $1.40 for the No. 2
washed. The operators got an increase in busi¬
ness as the result of this advance in price. What
is peculiar is that the advance does not appear
to have been contested by any of the buyers.
Smaller sizes are not moving very well. No. 5
washed is selling for seventy to seventy-five
cents, with No. 3 and No. 4 maintaining rela¬
tively a higher price. Prices up to Thursday
were :
F. O. B.
Williamson County — Chicago.
Lump . $2. .55
Egg . 2. .5.5
No. 1 washed . 2.5o
No. 2 washed . 2.45
On the first of July, gome Saline county opera¬
tors advanced the price on domestic lump to
$1.50, but made no cliange in the prices on other
sizes. As a consequence of increased produc¬
tion of lump the screenings market is easier, now
being quoted at eighty to eighty-five cents.
Prices up to Thursday were :
F. O. B.
Saline County — Chicago.
l.ump . % . $2.;)5
Mine run . _ 3.15
Screenings . 1.85@1.90
lJ4-inch lump . 3.30
One of the strongest spots in the market is
the Springfield district. This contrasts with the
record of that coal in former years. On the first
of July, the operators advanced their mine price
to $1.50 on lump and egg and have been getting
it. On the nut coal, the price is .$1.35. For the
last week, the operators have been getting a fair
run of orders. In the meantime screenings are
easier, the average price being about seventy-five
cents. Prices up to Thursday were :
F. O. B.
Springfield— Chicago.
•F. O. B.
Mines.
$1.50
1.50
1.50
1.40
F. O. B.
Mines.
$1.50
1.10
.80@ .85
1.25
F. O. B.
Mines.
. $2.32
$1.50
2.32
1.50
Nut .
. 2.17
1.35
. 1.87
1.05
Screenings .
. 1.57
.75
Clinton operators have not been making much
of an appeal for domestic business. Since other
operators are holding for $1.50, the Clinton
operators are doing the same thing. Most of
the mines are running on steam coal contracts,
with only an occasional lot of screenings on the
market at about cig' ""
to Thursday were :
Clinton —
Domestic lump .
Egg .
Nut .
Mine run .
Screenings .
Knox county coal has been practically un¬
changed within the last week, with but little busi¬
ness in domestic coal and most of the output
being devoted to the steam trade. Prices up to
'Thursday, while mainly nominal, were:
cents a ton.
Prices up
F. 0. B.
F. 0. B.
Chicago.
Mines.
. $2.27
$1.50
2.07
1.30
. 2.07
1.30
. 1.87
1.10
. 1.57
.80
Knox County —
F. O. B.
Chicago.
F. O. B.
Mines.
T
. $2.37
$1.50
. 2.37
1.50
. 1.87
1.05
Screenings .
. 1.57
.70
The domestic sizes of by-product coke have
not been any too strong. Nominally the pro¬
ducers have been holding for circular price of
$4.65, but orders can be placed at a concession
of ten to fifteen cents a ton. Furnace and foun¬
dry coke has been fairly firm at the old prices.
The market up to Thursday was : ^ ^
Coke— Chicago.
Connellsville . . . < ccfffs'In
By-product, egg and stove .
. : : : ; : : : : : : : : : : : : : :::::::::: 3,75® ..m
No. 2]
THE BLACK DIAMOND
35
Pittsburgh Trade.
Line Business Is Quiet but Lake Ship¬
ments, Coke Sales and Exports
Show Increase.
Office of The Black Diamond,
1503 Oliver Building,
Pittsburgh, Pa., July 8, 1915.
.•\ mid-summer dullness seems to have settled
over the coal trade in this district, domestic, line
and lake trade all seemingly taking a summer
vacation. One operator, when asked for an opin¬
ion as to present conditions, said “an invisible
improvement was evident,’’ and that is about as
near the condition you can get — “invisible but
evident.”
Certain it is, however, that the trade enters
the second half of 1915 under conditions vastly
different, but much the same as the first half,
which has undoubtedly been a disappointment.
Prices, while showing firmness, have not ad¬
vanced, and the volume of trade has not met ex¬
pectations. Buyers have now pretty well cov¬
ered for the last half, and outside of export
business little new business has developed the
past week. These conditions will probably main¬
tain for some weeks, though the same optimism
maintains as to the future that has characterized
the past, or, if any change, the increasing vol¬
ume of iron and steel business, increases the
“invisible improvement” seen by the coal pro¬
ducer, the war business contributing largely to
the hopeful views of the operator.
As in coke, the holiday of the week has to a
smaller extent had its effect at the coal mines,
though this was not felt as much as usual, ow¬
ing to the idleness at many points, hence ship¬
ments were not interfered with to any extent.
Heavy rains of the past week disappointed the
river coal men, inasmuch as they produced but
a slight rise in the rivers — not of sufficient mag¬
nitude to admit of lowering the wickets, hence
any coal going out had to be locked through the
dams. The only shipment of any magnitude was
made by the Diamond Coal & Coke Company,
who sent out three of their tow boats with ap¬
proximately 325, ()()() bushels of coal for the
south. Each boat took five barges, which fleet
will be consolidated when the lower pools are
reached and continue down stream under one
tow boat.
The usual mid-summer closing of mills and
mines at this season apparently cuts no figure
in trade under present conditions, few of the
plants that are working making any stoppage, as
all have had ample time in the past six months
to make any needed repairs and improvements.
The coke market last week felt the usual
holiday spurt, and spot furnace was in demand
at an advance of from $1.50 as quoted for some
time past to sales at $1.60 and $1.70, and scarce,
but this might be termed a soda water boom,
preparatory to the usual holiday shortage, as
many workers do not get back on their jobs for
a day or two after a holiday.
The Frick interests are operating at about
eighty-five per cent capacity, and the corpora¬
tion was pushing them for every ton possible
the past week, while brokers were phoning in¬
quiries to different independents for spot fur¬
nace, but found it hard to get even at the ad¬
vance. It is rumored that the corporation will
blow in additional furnaces very soon, the in¬
crease of war and railroad orders being felt con¬
siderably — this being the case, it is expected that
the J'rick interests in the Connellsville region
will fire a large number of additional coke ovens
to meet this demand. The question of labor is
approaching the ragged edge at coke plants, and
if the Frick ovens take up the idle forces to be
had today the merchant interests will find it very
hard to get under way to any extent. At pres¬
ent the independent producers are at near sixty
per cent, and the open market showing slightly
increased demand with strengthening prices.
There was some little trouble among the coke
makers the past week, and at one plant a three-
day strike caused a little excitement. This was
owing to the differences in wages paid, some
having been operating at figures less than what
is known as the Frick scale, and labor organ¬
izers created the agitation, but the matter was
soon disposed of, and the operators granted the
advance, which varies at different plants from
about eight per cent to twelve and one-half per
cent, and this will have a tendency to still fur¬
ther stiffen prices. One operator reported today
that he had refused $1.80 for delivery beyond
October 1st, and would not (piote price for the
last quarter on furnace coke.
On the whole, the coke trade is feeling the
effect of the steel trade expansion to quite an
extent, and the opinion is that before the second
half of 1915 closes the business will again be on
a top-notch basis.
The foundry coke trade still lags, but there is
more activity in the foundry iron market, and
consumption, no doubt, improving, and it is be¬
lieved the time is not far distant when this
branch will feel the general expansion in the
iron and steel trade.
News in and Near Pittsburgh.
Shipments of coal over the Norfolk & West¬
ern Railroad for the month of May were 1,T7S,-
3.38 tons. Shipments of coke from the Poca¬
hontas field were 64,872 tons.
The Pittsburgh Coal Company has taken title
to two tracts of coal land in Jefferson township,
paying Jacob H. S. Mowry $75,728 for 200 acres
and John N. Mowry $I>S,756 for 50.35 acres.
A member of the committee having in charge
the reorganization of the United Coal Company
states that subscriptions on the part of creditors
for new bonds is coming in satisfactorily, the
plan .having met with a favorable reception.
The American Zinc & Chemical Company,
with offices in the Oliver Building, Pittsburgh,
are opening a new coal mine at their plant at
Langoth, Pa., near Bengettestown, of 1,500 tons
capacity. The company consume their own nut
and slack, marketing the screened coal.
At the annual election of officers of the La-
trobe-Connellsville Coal & Coke Company, Mr.
Julian B. Huff was elected president, succeeding
Mr. M. W. Saxman, retiring. The other offi¬
cials remain the same. The general offices of
the company have been removed from Latrobe
to Greensburg, Pa.
Last Saturday a deal was closed whereby the
Edgewood Coal Company, composed of Mar¬
shall county people, sold a tract of almost 800
acres of coal land about three miles east of
Wheeling, W. Va., to Pennsylvania and Ohio
capitalists. The price said to have been paid for
the property was close to $75,000. It is under¬
stood that the purchasers will continue to oper¬
ate the property, but on a more extensive scale.
The officers of the old company were Sheriff
C. E. Hutchinson, president, and J. W. Garvin,
treasurer. Among the other owners were G.
Charles Hughes, F. H. Jones, J. M. Grandstaff,
W. T. Hughes and J. L. Phillips.
Detroit Trade.
Detroit, Mich., July S. — (Special Correspond¬
ence.) — With inactivity continuing the dominant
feature of the local coal market, shippers appear
to have lost none of the optimism which has
characterized their patient “watchful waiting”
for some weeks past. The explanation of their
attitude is perhaps traceable from the statement
of one of them :
“People will have to buy coal some time, and
every day that passes now brings that time
nearer. When they do get ready to send in their
orders some of the buyers may be fortunate if
they are able to get coal at the same price and
with as little delay as is possible at present.”
Neither steam nor domestic coal appears to be
in much demand. Fortunately the situation is
not seriously complicated by large consignments
shipped into Detroit as a speculative market.
While the amount of coal brought here is con¬
siderable, in the aggregate, it appears to be
less than were the shipments a month or so ago,
the result being a closer balance between supply
and consumption, which has the effect of giving
steadier prices.
Coal is still being sold below list prices to
avoid demurrage, but such sales seem to be more
infrequent, and the reductions made are reported
to be less extensive than was the case in the
spring months. While first-class slack ranges
from sixty cents upward, a good quality may be
bought around forty and forty-five cents. West
Virginia lump is olitainable at from $1.10 up¬
ward.
The improvement, if it may be so described, is
perhaps attributable to the diversion of surplus
coal to the lake trade, though the volume of the
rail-lake movement has not materially increased.
Shipments carried through the waterways at
Sault Ste. Marie in June were more than 336, ooo
tons less than in June, 1914.
The statistical report for last month shows a
total movement of anthracite amounting to 300,-
361 tons, which compares with 414,401 in June
last year and with 377,869 tons in the similar
month of 1913. Soft coal carried through the
canals amounted to 1,624,535 tons last month, in
contrast to 1,846,689 tons last season and 2,601,302
tons in June, 1913.
Owing to the bunching of ore carriers at Lake
Erie ports because of the Fourth of July double
holiday, there has been a great scramble for coal
cargoes this week, in which many of the freight¬
ers were unsuccessful and were forced to make
the upbound trip light. Others were held several
days on Lake Erie to await arrival of coal at
loading docks.
Coal from the Pittsburgh No. 8 district has
not yet regained much prominence in the local
market. Anthracite is dull, the retail dealers
seemingly being unwilling to stock up at this
time.
Prices in the local market on direct shipments
are :
West Virginia Gas —
F. 0. B.
Mines.
F. O. B.
Detroit.
Three-quarter lump .
_ $0.95@1.00
$2.35@2.40
Mine run .
. 75@ .80
2.15@2.20
Slack .
1.80@1.90
West Virginia Splint —
Four-inch lump .
- 1.35@1.60
2.76@3.00
Two-inch lump .
_ 1.10@1.25
2.50@2.65
1 hree-quarter .
. . . . I.OOCO'LIO
2. 40(0)2. 50
Mine run .
2.30@2.40
Nut, pea and slack .
. 50@ .75
1.90@2.15
Smokeless —
Lump and egg .
3.00
Nut .
3.10
Slack .
Open
Mine run .
Open
Kentucky Splint —
Lump .
2.60@2.65
Egg .
_ 1.00@1.10
2.40@2.50
Nut, pea and slack .
Open
Fairmount —
Three-quarter steam lump. . . .
. 85@ .95
2.25@2.35
Mine run .
. 70@ .80
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
. ... 1.50
2.65
Shaker egg and nut .
_ 1.15
2.30
Domestic lump .
_ 1.35
2.50
Three-quarter lump .
_ 1.25@1.30
2.40@2.45
Mine run .
_ 1.00@1.10
2.15@2.25
Nut, pea and slack .
Open
Open
Detroit Local News.
Harry B. Parker, having sold his interest in
the Parker Bros. Company, Ltd., wholesale and
retail Detroit coal dealers, has retired from the
firm and will devote his attention to other inter¬
ests.
Bids for supplying coal to the United States
lighthouse service in the Eleventh district, which
were opened recently, have been referred to the
bureau in Washington, which will award the
contract.
J. T. Sinclair, for many years a well-known
wholesale and retail coal dealer in Detroit, has
formed the J. T. Sinclair Company, which is
incorporated with capital stock of $200,000, of
which $100,000 is paid in property. Besides Mr.
Sinclair, the stockholders are A. F. Arbury and
D. N. Harper. The company will handle coal
and coke.
Anthracite Tax Case.
Philadelphia, July 7. — (Special Correspond¬
ence.) — Another chapter was written in the fight
to determine the constitutionality of the anthra¬
cite coal tax of 1912, when an appeal from the
decision of the Dauphin county court was heard
before the state supreme court in its sitting in
this city on Friday last. The text of the deci¬
sion upholding the tax was printed in The Bl.ack
Diamond of last week.
In the argument of the case John G. Johnson,
C. B. Miller, J. T. Olmstead and A. C. Stamm
appeared as counsel for the coal ' companies.
They advanced the argument that the act di¬
rected the distribution of the money raised by
tax to borroughs, districts and townships where¬
in no coal was mined, and that nine counties
alone were producing this revenue.
The noted lawyer John G. Johnson urged that
the title of the law was defective and misleading
in that no one would suppose that the tax to be
collected would be distributed in a manner as to
tax the citizens of one municipal district for
the benefit of another distinct district. The
method of distribution, he declared, was uncon¬
stitutional in that it contained two different sub¬
jects. Francis Shunk Brown defended the pro¬
vision of the bill and the method of distribution
ordered.
The decision of the judges was reserved.
36
THE BLACK DIAMOND
[July 10
Cincinnati Trade.
Prices Are Better Because There Is a
Demand for Coal From
Retailers.
Cincinnati, Ohio, July 8. — {Special Corre¬
spondence.) — While the situation is what is de¬
scribed as “spotted,” in this territory, prices of
coal are somewhat better in most fields, and de¬
mand has improved. This is especially true in
nut and slack, which is beginning to feel the
pressure of better demand from the increased
iron and steel production and the general re¬
sumption of industries.
Events have proved that the accumulation of
cheap coal in the various parts of the country
was much larger than had been thoughf, and that
now this accumulation is beginning to melt. An¬
other factor that has aided slightly is the three-
day holiday over July 4th.
Some of the prices this week look better.
Kanawha lump is $1.2.5, and well advertised
grades are going as high as $1.60. In this field
nut and slack is in better demand at higher July
prices of fifty to seventy-five cents, egg $1.10 to
$1.25 and run of mine from eighty to ninety-five
cents.
In other fields there is little lump moving ex¬
cept for railroad purposes. Splint prices for
July are held by most of these fields to be:
Lump, $1.35; egg, $1.10; mine run, ninety cents,
and nut and slack, seventy-five cents. These
are contract prices, spot prices being lower in
some respects. In these fields the better adver¬
tised brands are held at $1.50.
Inquiries for all grades and brands of coal
have been much better this week, and contract
signing has become more general, many who have
refused to sign now being active in leading up to
negotiations, and in many cases even taking the
initiative. There is a little more shipping to the
lakes, but very little, and splint producers have
been gladdened by inquiries from Spain and
Italy, while South Americans have been giving
indications that they are turning their attention
to cheaper coal than the smokeless producers can
guarantee them. Altogether the splint man is
more cheerful at the close of this week than he
was at the close of the last week.
There is no surplus of any sort of smokeless
coal, and this includes both New River and
Pocahontas products. It was reported early in
the week that No. 3 Pocahontas was weak, and
some of it was on the spot market. This was
indignantly denied by No. 3 companies, who sent
feelers out to find if the report were true. One
would have taken 100 cars off the market, but
he could not find ten cars, but he did find a few
producers who said they could furnish a few
cars if he would take the resultant run of mine
and slack, which he does not need. The tide
water demand is still as good as ever, with a
little halt in shipment due to lack of vessels. As
a general rule, operators say, they are going
smoothly along at a satisfactory pace.
Some splint operators frankly say that nothing
will improve the market until a car stringency
strikes the country. They are looking for that
very thing to occur; in fact, they say there are
evidences all around. As to the labor market,
the weakness of that will not develop, it is al¬
leged, until all the fields begin operating in full
force. As it is now, the splint mines, operating
but three and four days a week — and most of
them are doing this now — give employment to a
percentage of the men which keeps at a steady
figure, the balance going into the smokeless fields,
where mines are running night and day. When
the splint mines get into full operation it is pre¬
dicted the labor stringency will be certainly fierce.
Cincinnati Local News.
C. B. Ebbert of Chicago, representative of the
White Oak Coal Company, was a visitor to the
local offices of the company early in the week.
T. P. Young, manager of the Lexington Coal
& Coke Company, was a visitor in the city
Wednesday.
Kuper Plood of the Huston Coal Company left
Monday for the east to oversee some of the de¬
tails of new export business which has come to
the company.
Harry L. Bocklage has been added to the
Queen City Coal Company force in this section
of the country, and will represent the company in
Indiana.
D. T. Ulland of the Ulland Coal Company
started with the Shriners of this city to Seattle
to attend the meeting of the Shriners in that city
shortly.
Hugh Bartlitt of the Darby Coal & Coke Com¬
pany is in very much better s[)irits from the fact
that Mrs. Bartlitt was able last Saturday to be
removed from the hospital, where she has been
ill for some weeks, to her home. She is con¬
valescing rapidly.
One or two Cincinnati companies have received
inquiries from Spain for coal and requests to
send prices and terms of delivery. In the let¬
ters are indications that there will be heavy
demand from that part of the world in addition
to the heavy demand from other parts of Europe
within a few weeks.
Captains William and Edwin Marmet, who have
just gone out of the Marmet Coal Company, are
planning a $100,000 river excursion steamer for
use of Cincinnatians, and others, during the excur¬
sion season. It is planned to be a carrier of
about 2,000 persons safely, and it is proposed that
it shall be the largest, finest and safest boat in
the river.
George P. Daniels, secretary-treasurer of the
Smokeless Fuel Company, returned this week
from an extended trip throughout the northwest,
in which he uncovered a much better sentiment
than suspected and a much better prospect for
early resumption of satisfactory coal business
than he had expected. Mr. Daniels returned the
latter part of the week to Detroit for further
business getting.
W. O. Davis, secretary-treasurer of the new
Kentucky River Coal Corporation, was a visitor
in the city this week. He was in conference with
certain financial men of the city interested in
the new coal venture, which is a consolidation of
the various Slemp interests in Kentucky. Mr.
Davis is a prominent lawyer of Lexington
closely identified with the coal business in his
profession and makes an excellent official of the
big consolidation.
The Queen City Coal Company, the Diamond
Coal Company, that Campbell’s Creek Coal Com¬
pany and the Otto Marmet Coal Company have
brought down tows from the Pennsylvania and
the Kanawha coal fields this week, the two first
mentioned sending down three tows each. The
river companies are in as good position for sup¬
plying their patrons this year as they have ever
been, in all probability there having been very
heavy transportation of coal from these fields
this season, which has been much better tlian
the average season for coal rises.
It was reported this week among coal men
here that the Big Four contracts were awarded
this week, but that the results are not to be made
known to the successful bidders until later. The
story has it that the company has, at its fuel
points in this territory, a heavy accumulation al¬
lowed to be piled up on the late contracts in the
latter part of June, and this accumulation will
be allowed to dissipate before the new contracts
are announced, to avoid the annoyance of hold¬
ing back shipments. The West Virginia portion
of the road’s contracts totals over 400,000 tons,
and quite a number of companies here are on the
anxious seat. The contracts are effective July
1, and a little dissatisfaction exists at the situa¬
tion.
A revision of the local prices by the coal com¬
mittee of the Chamber of Commerce and of the
Cincinnati Coal Exchange gives the following
delivery prices: Youghiogheny lump, $3.50 and
$3.75 per ton; nut and slack, $2.25. Kanawha
lump, $3.50 and $3.75 per ton ; nut and slack,
$2.25. Smokeless lump, $4.75; nut and slack,
$3.25; run of mine, $3.50 and $3.75. Anthracite,
$7.75 and $8; broken, $4.65 and $4.70; egg, $4.90
and $4.95; stove, $4.90 and $4.95; chestnut, $5.15
and $5.20 ; pea, $5.60 and $5.65 ; buckwheat, $2.80
and $2.85 ; rice, or No. 2 buckwheat, $2.40. River
coal : Pittsburgh, eight and one-quarter cents
per bushel of 2,688 cubic inches; run of mine,
seven and one-half cents; Kanawha, eight cents,
all afloat.
Toledo Market.
Toledo, Ohio, July 8. — (Special Correspond¬
ence.) — There is little in tlie local market to cause
much optimism among Toledo coal dealers. The
demand is not particularly better than it has been
and despite a strenuous effort to uphold the mar¬
ket and keep prices right it is a fact that coal is
not selling close to the list but is really a Iniye'rs’
market and prices are determined largely by the
desire of the buyer to secure coal and that of the
holder to exchange his coal for money.
While it is the stocking season there is
little stocking going on. West Virginia coal
for lake movement is showing some life, but
outside of this the market is extremely dull. The
action of the Sunday Creek Company shows some¬
thing of the state of Ohio coal operators and it is
freely predicted here that an adjustment of
freight rates must soon follow if Ohio operators
are to continue in the business.
Smokeless coal is in good demand, but prac¬
tically all Toledo dealers are completely sold up
and there will be no available supplies until the
first of August. This, of course, applies to the
select grades.
F. O. B. F. O. B.
Smokeless — Toledo Mines
I-ump and egg . $3.45 $2.00
Mine run . 2.70 1.2.5
Pomeroy is dull and though the threshing sea¬
son is now on there does not seem to be much
tendency on the part of dealers to stock up. Prices
remain unchanged.
F. O. B. F. O. B.
Pomeroy — Toledo Mines
Domestic . $2.60 $1.60
Egg and nut . 2.35 1.35
Hocking is dull and the Ohio product is finding
it practically impossible to' meet the competition of
the West Virginia coal.
F. 0. B.
F. O. B.
Hocking —
Toledo
Mines
3-inch lump .
1.50
154-'nch lump .
1.40
44-inch lump .
1.30
Egg .
1.25
Nut .
1.15
Mine run .
1.10
West Virginia coal by comparison with other
.grades is moving well, but conditions are by no
means normal. There is some shipping for lake
movement, but this is below normal and prices
remain the same.
Kanawha Gas —
44-inch lump .
1.05
Mine run .
.95
Fairmont —
144-inch lump .
1.05
44-inch lump .
. 2.20
.95
Mine run .
.85
F. O. B.
F. O. B.
Kanawha Splint —
Toledo
Mines
4-inch lump . . .
$1.50
2-inch lump .
1.40
44-inch lump .
1.15
Mine run .
1.00
Kentucky coal has been enjoying a fair move¬
ment as conditions now are and prices remain
fairly firm. There seems to be some difference
of opinion on the price question and the move¬
ment is spotted. Prices follow :
F. O. B. F. O. B.
Kentucky — Toledo Mines
4-inch lump . $2.90 $1.65
Egg . 2.50 1.25
Nut, pea and slack . open open
Massillon shares the fate of other Ohio coal
and is practically stagnant with unchanged prices.
F. O. B. F. O. B.
Massillon— Toledo Mines
Lump . $3.25 $2.50
Washed nut . 3.25 2.50
Pittsburgh No. 8 is showing little activity and
the call continues light.
Pittsburgh No. 8 —
i;4-inch lump . 2.40 1.40
14-inch lump . 2.20 1.20
M.ne rui. . 2.10 1.10
Youghiogheny demand is low and prices are not
being specially well maintained.
Youghiogheny —
Mine run . 2.45 1.20
J4->nch steam lump . 2.55 1.30
Blossburg Smithing —
Prepared size . 3.20 1.75
Lilly smithing, prepared size . 3.20 1.75
Cambridge is unchanged with slow movement
and unchanged prices.
F. O. B. F. O. B.
Cambridge — Toledo Mines
Mine run . $2.10 $1.10
44-inch lump . 2.20 1.20
154 -inch lump . 2.40 1.40
There has been some development in cannel coal
within the past week and the demand is fair with
a good movement. Prices are fairly firm.
Cannel —
Kentucky Cannel lump . $4.60 $2.75
Pennsylvania Cannel, egg . 3.60 2.15
Pennsylvania Cannel, lump . 4.20 2.75
Ohio Cannel . 3.85 3.00
Toledo News Notes.
Wm. Byers, of the Fluhart Collieries Company
of Dayton, was a Toledo caller last week.
H. W. Jenkins, Ohio sales agent for the Bor¬
derland Coal Sales Company of Columbus, visited
Toledo coal offices last week.
President R. T. Tway, of the R. C. Tway Coal
Company of Louisville, Ky., was in the city this
week. Mr. Tway states that business in his sec¬
tion is fairly good and he takes an optimistic
view of the general situation.
No. 2]
THE BLACK DIAMOND
37
Twin Cities Trade.
Minneapolis and St. Paul, July 8. — (Special
Correspondence.) — In the matter of prices coal
market conditions in the northwest are much im¬
proved over those existing a year ago. At that
time dock prices as well as those of all-rail ship¬
pers were badly demoralized. While some of the
factors in the trade were endeavoring to maintain
circular prices they were not permitted to do so
by the price-cutting of the other fellow, and when
the other fellow was not actually cutting prices
he was under suspicion, which had the same
result. Although prices are bein.g maintained they
are not exorbitant. The present dock circular
price on soft coal is fifteen cents a ton less than
it was a year ago, whereas the circular on south¬
ern Illinois coal is exactly the same as that time.
Under these circumstances the buyer of coal is not
indulging in any complaint, and where the truth is
known there is every reason to believe he is
better satisfied with present conditions than he
was with the previous demoralization. Most buy¬
ers pride themselves on the fact they can buy a
few cents cheaper than the other fellow, and
when there is a demoralized market they look
for the last cent, just to sustain their pride in
their business ability. Sometimes it keeps them
very much worried to keep up with the proces¬
sion, especially when price changes occur once or
twice in twenty-four hours. On the other hand,
when there is a steady market, they feel reason¬
ably sure that no one else is doing better than
they are and a heavy load is lifted from their
minds.
Under existing circumstances it is to be ex¬
pected that the market will continue steady. Coal
investments on a large scale, for two or three
years, have not returned a reasonable interest rate,
and undoubtedly the whole country will be better
off from a material standpoint if the man who
has invested his money in mines, docks and retail
coal yards is permitted to earn his six or seven
per cent. There is already some talk that some
of the dock companies may advance their prices
on prepared sizes ten cents more a ton some time
in August, and it is absolutely assured that prices
on southern Illinois coal will harden fully ten
cents a ton, if not more the first of next month.
These market prospects will undoubtedly have a
tendency to make buyers somewhat forehanded
in their purchases against future requirements.
An advancing market always induces heavier buy¬
ing and the northwestern market on all .grades
of soft coal is showing stronger tendencies as
the season advances.
Current prices on all grades of coal sold in this
territory are as follows :
ANTHRACITE.
Grate .
Egg .
F. 0. B. F. 0. B.
Duluth Minneapolis
and_ and
Superior St. Paul
. $6.60 $7.80
6.85 8.05
fi ftfi ft. ns
Nut .
7.10
8.30
Pea .
. 5.50
6.70
Buckwheat .
4.00
5.20
During July a discount
of twenty cents per ton is
allowed on all anthracite
except
pea and buckwheat,
which prices are net.
BITUMINOUS.
Splint, screened lump and
stove. . .
. $3.40
$4.36
Splint, dock . .
3.10
4.06
Hocking, screened lump and
stove. .
3.40
4.36
Hocking, dock run .
3.00
3.96
y oughiogheny, gas, lump and stove.
3.40
4.36
■youghiogheny, gas, dock run .
3.10
4.06
Pittsburgh vein, lump .
3.40
4.36
Pittsburgh vein, dock run..
3.00
3.96
Pocahontas, screened lump or egg. ..
4.75
5.71
Pocahontas screened lump
and egg
mixed .
4.50
5.46
Pocahontas, mine-run ....
3.25
4.21
Cannel, lump .
5.25
6.21
Smithing, 'oulk .
4.25
5.21
Smithing, in 1 00-lb. sacks. .
6.00
6.96
Briquets, anthracite .
5.00
5.96
Briquets, smokeless .
5.00
5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows :
Southern Illinois chunks . $1.3.S@1.50 $3..')5@3.7n
.Southern Illinois egg . 1.35@1.60 3.55@3.70
Southern Illinois No. 1 nut . 1.35@1.50 3.55@3.70
Southern Illinois No. 2 nut . 1.25@1.3.5 3.45@3.55
Southern Illinois No. 3 nut . 1.2n@1.25 3.40(3)3.4.5
.Southern Illinois run-of-mine. . . . I.15@1.25 3.35@3.45
.Southern Illinois 2-in. screenings. .80 3.00
Southern Illinois coal includes Franklin county,
Harrisburg and Williamson county.
Twin Cities News Notes.
Frank J. Browning, secretary and treasurer of
the Purity Coal Company, Chicago, was in the
northwest for several days on business and pleas¬
ure.
F. Warde Smith, formerly sales manager of
the Cedar Lake Ice Company, Minneapolis, has
accepted an important position with the I'lour
City Fuel & Transfer Company, Minneapolis, one
of the lar.ge coal companies.
H. L. Laird, secretary of the Northwestern Re¬
tail Coal Dealers’ Association took a trip to
Marshalltown over the Fourth with his family,
in his new Premier car and was laid up at Albert
Lea, Minn., for twenty-four hours on the return
trip on account of bad roads, due to the recent
very heavy rains.
The Northwestern Retail Coal Dealers’ Asso¬
ciation will hold its annual convention in Min¬
neapolis next Thursday and Friday at the Dyck-
man hotel. A very interesting program has been
prepared, the prominent feature of which is an
address on features of the coal trade by Frank
Stockdale, editor of “System.” There will be
entertainment for the dealers, but most of the
large companies will refrain from calling in their
salesmen from the road in order that the con¬
vention may be emphasized as a dealer's conven¬
tion.
Indianapolis Trade.
Indianapolis, Ind., July 8. — (Special Corre¬
spondence.) — The demand for Indiana coal is
not improving. The trade between the Indiana
operators and Chicago has been cut down lately
because of the labor troubles. Several operators
say that their Chicago contract customers have
reduced their orders because of the labor condi¬
tions. The Indiana tonnage to Chicago during
June was below normal, and it bids fair to be
even worse during July unless there is a change
soon in the present situation. As far as In¬
dianapolis and other Indiana manufacturing cen¬
ters are concerned, the demand for steam coal is
not improving. Here and there some concerns
are reported to be doing a nice business. Har¬
ness manufacturers, for instance, are doing a
wonderful business. They are making harness
for European nations now engaged in war. But
the harness factories use very little coal. The
wagon manufacturers — there are but two or
three in Indiana — are reaping a harvest because
of war orders, but they don't consume enough
coal to cause a change in market conditions.
There are a few factories in this state that
manufacture munitions of war, but they are not
big enough to help the coal trade very much.
The furniture manufacturers are complaining
because of poor business. They are coal con¬
sumers. The lumber dealers who use coal say
that business is poor. Taken as a whole, the
business situation is far from being inviting
from the standpoint of the coal operator. The
demand for steam coal is below normal, and the
prices are about the same as they have been for
some time. There is practically no demand for
domestic except from the wheat threshers. Un¬
der the circumstances the operators are doing
well to hold prices as they have been for some
time.
The following prices are being quoted by the
Indiana wholesalers :
F. O. B.
Indiana — Mines.
No. 4 mine run . $1.10®!. *20
Nos. 5 and 0 mine run . 1.00@1.10
No. 4, lJ4-inch steam coal . 1.30@1.40
Nos. 5 and 6, l|4'inch steam coal 1.20@1.30
No. 4 egg . 1.8O@1.40
No. 4 nut . 1.25@1.30
No. 5 egg . 1.25@1.35
No. 4 screenings . 8r)@ .90
No. 5 and 6 screenings . 80@ .8.5
Domestic lump . 1.40@1.50
No. 1 washed coal . 1.7.5
No. 2 washed coal . 1.05
Brazil block . 2.00@2.10
Southern Indiana Field-
No. 5 mine run . 1.00®1.10
Domestic . J.40@1.50
F. O. R.
Indianapolis.
$1.CO®1.80
1.50@1.60
1.80@1.9')
1.70@1.80
1.80@1.90
1.75@1.80
1.75@ 1.85
1.35@1.40
1.8U@1.35
1.90@2.00
2.25
2.15
2.50 @2.00
The Indianapolis retailers are quoting the fol¬
lowing prices : Linton No. -I, forked, $.'! ; In¬
diana lump, forked, $2.7.'); Indiana lump and
egg, screened, $2. .50 ; Kanawha lump, forked,
$4.25 ; Ohio Hocking lump, forked, $4.25 ; Ohio
Hocking, washed egg, $4.50 ; Kentucky lump,
$4.50; Ohio Jackson lump, forked, $5; Blossberg
smithing, $5.50; cannel lump, $6; Pocahontas
forked lump, $5.50 ; Pocahontas shoveled lump,
$5 ; Pocahontas mine run, $4 ; Pocahontas, nut
and slack, $:i.50 ; anthracite chestnut, $7.75 ; an¬
thracite stove and egg, $7.50; anthracite grate,
$7.25 ; Connellsville coke, $0 ; Indianapolis by¬
product coke (all sizes), $5.50.
Extra delivery charge: Bags, fifty cents a
ton extra, ground floor or dumped in cellar ;
bags, seventy-five cents a ton extra, carried into
cellar; charge for chute or wheelbarrow, twenty-
five cents a ton.
.Articles of incorporation have been filed by the
Kingsbury-Shepherd Coal Company, Indianapo¬
lis, $10,000; to deal in coal and fuel. H. N.
Kingsbury, H. R. Kingsbury, J. B. Shepherd.
The Elberfield Co-operative Coal Company,
Elberfield, Ind., has filed notice with the secre¬
tary of state of an increase of $1,000 in capital
stock.
St. Louis Trade.
St. Louis, Mo., July S— (Special Correspond¬
ence.) — The July circulars, which raised nearly
all grades of coal, together with the holidays,
caused actual buying to drop off for the moment,
but as the last few days of June brought a good
deal of business on all grades of coal, the opera¬
tors were content to lay back and fill the orders on
hand, and have not been pushing much for new
business the first week in July.
The dealers are beginning to come around to
the July prices, and by the time the mines ac¬
tually need more orders there is no doubt but
that there will be plenty of the July circular to
keep them busy.
Business on high grades has been better than
expected. The Franklin and Williamson county
operators are now gettin.g a nice run of businesi
and are running as close to full as could possibly
be expected at this time of the year.
The dealers locally are beginning to do a fair
business, which will naturally increase in volume
from now on. The 10th of July always been
considered the turning point in the summer coal
trade, as after this date all business begins to
take on considerable activity.
While the Standard operators have not been as
fortunate in regard to the amount of orders on
hand as those in the higher grade fields, never¬
theless the conditions have improved, and the
prices have been advanced. It is gratifying to
note that the operators are more inclined to stick
together, and hold out for the list prices, and the
situation seems to be in hand better than at any
time durin.g the summer months in the past.
Current prices are as follows :
Standard— Mine
6-inch lump . $1.00
6x3 egg . 1.00
6x2 steam egg . 80
2-iiich lump . 85
3x2 nut . 85
2x1 nut . S5
Mine run . 80
2-inch screenings . 85
St. Louis
$i.5i;4
1.57}4
1.37J4
1.42'/^
1.42;.^
1.52J4
1.37J4
1.4754
Tilden and Springfield operators are doing a
conservative business, and sticking firmly to their
prices, which are as follows :
Staunton or Mt. Olive —
6-inch lump . 1.25 1.8254
2-inch lump . 1,20 1.7754
3x2 nut . 1.10 1.6754
2-inch screenings . 80 1.37K'
Williamson county coal shows considerable im¬
provement, both in price and in demand. There
is quite a little demand from the south.
Williamson County —
6-inch lump . $1.25 $1.9754
3x2 nut . 1.23 1.97 54
Washed No. 1 . 1.50 2.2254
Washed No. 2 . 1.30 2.0254
154-inch screenings . 80 1.3254
The demand for Franklin county is good. The
demand for coal, both locally and in the country
is quite brisk, and orders are coming in better
than was expected.
Franklin County —
0-inch lump or egg . $1.50 $2.22 ;4
2x3 nut . 1.50 2.2254
Anthracite has been dull but is picking up. It
had quite a spurt at the end of June. In fact the
spurt was more than was expected, and cleaned
out nearly all the entire supply of coal in transit.
Anthracite —
Chestnut . $7.35
Stove or egg . 7.10
Crate . 6.85
Coke and smokeless remain unchanged with
light demand.
Coke —
Gas house lump or egg . 4.25
By-product egg, stove or nut . 4.50
Smithing coal . 4.25
Smokeless —
Lump or egg . 1,75 4.25
Prices on Illinois soft coal, f. o. b. East St. Louis,
Madison, Venice, or Granite City, Ill., are 255^ cents
per ton less than St. Louis prices.
All records were broken in Baltimore by the
June coal exports. During that month there was
loaded there a total of 305,917 tons for foreign
points. Italy took the largest amount, 127,744
tons, with Argentina as second, with 98,510 tons.
But seven vessel charters were announced the
past week, against an average of about fifteen
for the past several weeks, in the foreign coal
carrying trade.
38
THE BLACK DIAMOND
[July 10
New York Trade.
Holiday Observance Felt in Both Anthra¬
cite and Bituminous Markets
— Orders Few.
• Office of The Bl.\ck Di.wiond,
New York, July 8.
It is rather difficult to size up the anthracite
situation following |)ractically a full week’s ces¬
sation from i)ro(luction, distribution and sell¬
ing, due to the h'ourth of July holidays.
Up to \\’ednesda> noon coal offices had i)racti-
call\' no new business to report, and while a fair
.'ohune of coal is being loaded from the piers
this is going forward on orders received prior
to the holidays, and the coal in cpiestion is largely
from accumulations at the piers. There is no
pressure from any section for coal, and most of
those in the trade anticipate that this month will
he perhaps the (luietest of any during the present
year.
In the matter of production most of the col¬
lieries shut down last week for a full week, and
are just starting uj) to run two or three days
only, unless orders should become more plentiful
before the week has passed. Production figures
for June will he made public later in the week.
It is estimated that shipments for the month of
June will show a loss of about 400, ()()() tons as
compared with June, 1914, when shipments
reached (),i:!0,18() tons. According to the Bureau
of Anthracite Statistics, shipments for the first
five months of 1915 were 5.'S(),401 tons less than
shipments for the first five months in the pre¬
vious year. When June is included the ship¬
ments for the first half of 1915 will he close to
a •million tons less than for the first six months
of 1914. The trade, therefore, are very hopeful
that the fall months will prove very active, and
that the improvement will set in late in August
or early in September.
It has been pointed out at various times that
recjuirements of anthracite for domestic pur¬
poses varies so little from year to year that the
loss of production of a million tons in the first
six months of the year will have to be made up
during the fall and winter months. Moreover,
anthracite stocks were pretty well absorbed dur¬
ing the past winter, and there is very little sur¬
plus above ground, so that if the coming fall is
anything like normal the anthracite trade will
uiKiuestionably be active. Again, it is pointed
out that manufacturing conditions, esi)ecially
through the east, where anthracite coal is used
exclusively for domestic pur|)oses, have im¬
proved, and that workmen will consetpiently be
in a much better position to keep their furnaces
going during the coming winter than they were
last winter, when there was so much idleness
due to the European war.
In the way of concessions, a great deal of
chestnut coal is said to be selling under the cir¬
cular, but at prices that are said to be much bet¬
ter than prevailed at this time last year. Due
to the restriction policy being practiced by both
large companies and individuals, there is no
great amount of surplus coal today, and the rad¬
ical reductions that one hears talked about are
confined in most instances to extreme cases and
do not affect a considerable tonnage. Stove and
egg coal are moving freely, considering the sea¬
son, and are held closely to the circular.
Steam sizes of anthracite are not so plentiful —
that is, as far as concerns the better grades — and
at the upper ports of New York these sizes are
held very closely to the circular, and in some
instances shi|)pers are delayed in getting cargoes
loaded promptly, due to the restriction in min¬
ing and the small amount of these coals that are
coming to tide. At the lower ports some of the
inferior coals are very plentiful, and prices on
these are easy. There are numerous loaded boats
of pea and buckwheat in the harbor, and it is
possible to obtain these at good concessions.
The Bituminous Situation.
The bituminous trade has been affected by the
holiday observances. Production has been cut
very materially, while distribution is consequent¬
ly slow. Contracts coals are moving along in
good volume, but the much talked of and ex¬
pected improvement in spot demand has failed so
far to materialize.
Unquestionably most of the large interests that
take coal upon contract have closed up on con¬
tracts, so that practically the only business now
o|)en is that of small concerns whose calls are
not so heavy. It a])pears that some of these,
who have been prompted by the low prices that
have been offered on soft coals, believe that they
buy coals to better advantage from time to time
as they may need it, than to commit themselves
over a period of months at a specified price, which
is in all cases considerably higher than the spot
l)rices obtaining for the same coal.
At the moment most of the tidewater ports
have considerable unsold coal, but there seems to
be no pressure to sell accumulations at some of
the sacrifice prices that were in effect during the
past spring. It might be possible today to pick
up some lots of inferior coals in New 5’ork har¬
bor as low as $2.95 a ton, and some good Penn¬
sylvania coals at $2.()5 f. o. b. the piers. Choice
grades would sell around $2.80.
The export trade continues to be the one bright
feature of the hituminous situation. Total ex¬
ports through Philadelphia, Baltimore and
Hampton Roads during June reached well over
1,()()(),00() tons, establishing a new record, and
advices at hand at the moment indicate that there
will be very heavy loading throughout July, and
contracts in existence call for heavy shipments
throughout the remainder of the year. As export
cargo coal increases, there comes a like increase
in the demand for bunkers for steamers taking
coal cargoes, so that this line of the trade is tak¬
ing heavy tonnages from the ports above named.
The Vessel Situation.
The coastwise vessel situation shows no
change. Former rates are just about firm, with
some interests predicting that the situation will
be eased somewhat by the return of some of the
steamers that were taken during the winter
months for the transatlantic trade. A great
many schooners that went into the off-shore
trade, taking cargoes principally to West Indies
and South American ports, have not yet been
returned to the coastwise service.
Off-shore rates are slightly easier, and appar¬
ently there will still l)e further declines in these.
Current quotations are as follows:
From Hampton Roacjs to Boston, seventy-five
to eighty-five cents ; to the Sdund, seventy to
eighty cents.
From New York rates to New Haven are thirty
cents. New London, forty cents, and Providence
and New Bedford, fifty cents: to Boston, fifty-
five to seventy cents ; Portsmouth and Portland,
fifty-five to seventy cents: to Bangor, seventy
cents. Harbor rates are from eighteen to twenty
cents.
Prices on gross tons of bituminous coal are :
F. O. B.
F. (). B.
Somerset County —
Harbor.
Mines.
Best grades .
$1.25
Medium grades .
. ^.()0
1.05
Ordinary .
1. 00
Cambria County —
Best I^Iiller vein . .
1.40
C'lieaper grades .
. 2.(50
1.0. -J
Clearfield County —
Best grade .
. 3.00
1.35
Ordinary grades .
. 2.50
.05
Indiana County —
Best grade .
1.35
Medium grade .
. 2.50
.00
Maryland —
Georges Creek big vein .
. 3.1.5
l.fil
West Virginia —
Ordinary grades .
. 2.40
.7T)
Best gas, ^-inch lump .
. 2.05
1.10
Best grade, run of mine .
.00
Gas slack .
New York Trade Briefs.
J. W. Whiteley of Whitney & Kemmerer, No.
14.3 Liberty street, spent the holiday of the
Fourth at Lake George.
.Alan E. Trombore of the Consolidation Coal
Company of New A’ork was a visitor to Phila¬
delphia over the Fourth of July holiday.
Arthur Terry, New York manager of W. C.
Mason & Co., has just returned from a week's
automobile tour of the Cattskill mountains.
Harry E, Meeker of Meeker & Co., No. 143
Liberty street, is visiting the Panama-Pacific ex¬
position at San Francisco.
G. W. Seiler of Seiler-Blanchard Company,
No. 1 Broadway, visited the Catskill mountains
over the holidays, making his trip via motor.
Lemuel Burrows Jr., vice-president and gen¬
eral manager of Castner, Curran & Bullitt, Inc.,
No. 1 Broadway, is spending several days at
Atlantic City this week.
George J. Haney, the well-known Perth Am¬
boy, N. J., coal dealer, leaves this week for a
visit to the Panama-Pacific exposition at San
Francisco.
Taylor Vinson, an attorney of Huntington,
W. Va., and interested very largely in coal prop¬
erties in that state, was at the Waldorf several
days this week.
•At the recent meeting of the Delaware, Lacka¬
wanna & \\ estern Coal Company an extra divi¬
dend of fifty per cent, in addition to the regular
quarterly dividend of two and one-half per cent,
was declared.
Wdliam B. Oakes has been elected treasurer of
Peale, Peacock & Kerr, Inc., with headquarters
at Grand Central Terminal, New A'ork city, suc¬
ceeding to the position made vacant by the re¬
tirement of J. 11. Lumley. .Mr. Oakes'has been
connected with the various Rembrandt Peale
enterprises for many years.
Last week the newspapers stated that contracts
for four l(),()()0-ton steamers are soon to be
awarded to the New York Shipbuilding Com¬
pany of Camden, N. J. The new order is said to
be in addition to recent orders for ships of simi¬
lar size, and that the company now has sufficient
business to keep its plants busy for two years.
Willis (j. Townes, who is now in Europe in the
interest of a well-known bituminous company,
has written a triend that he will open offices in
both London and Paris. It is understood that
Mr. Townes is meeting with some success in his
work of securing foreign orders, and that some
coal has already started to go forward on this
account.
Bids were opened on last Friday, the 2d, by
the department of docks and ferries of the city
of New A'ork for aiiproximately 2,000 tons of No.
2 buckwheat coal. Bidders were as follows :
George D. Harris & Co., $2.2() ; Charles D. Nor¬
ton, $2.18: Gavin Rowe, $2.21: Pattison &
Bo\vns, $2.14, and Clarksiiurg Coal Mining Com¬
pany, $1.94, all of New A'ork city.
Louis DeMayo, the inventor of the DeMayo
coal elevator, now in use by several of the
transatlantic lines that bunker their steamers in
New A'ork harbor, returned about ten days ago
from a trip to the Panama canal, where the Gov¬
ernment has recently placed four of his eleva¬
tors ill commission. Mr. DeMayo states that
these elevators have been placed on steel barges
of_ 61)0 tons capacity that the Panama canal is
using for the bunkering of steamers that are
calling at Cristobal for bunkers. Two elevators
are placed on each barge. Each barge has a ca¬
pacity of handling about 200 tons per hour. It
is understood that this equipment will be in¬
creased as the demand for bunker fuel grows.
Samuel Thorne, a capitalist, banker and di¬
rector of railroads and other large enterprises,
died suddenly of heart disease Sunday on board
the yacht of Janies J. Hill, chairman of the board
of directors of the Great Northern Railway, on
the St. Johns river, near Quebec, Canada. Every
year it has been Air. Thorne's custom to take
this fishing trip with Mr. Hill, his friend and
long time business associate. He was eighty
years old and was a native of New A'ork state.
Air. Thorne was interested in the early develop¬
ment of the Pennsylvania anthracite coal fields
and was for a time jiresident of the Pennsylvania
Coal Company. He was an uncle of S. B.
Thorne, president of Thorne, Neale & Co., and
the Temi)le Coal Coinjiany, with headquarters in
this city.
One soft coal man was happy on last Satur¬
day, when he pulled down his roll-top desk to go
out of town over the holidays. He said: “You
may say that the soft coal business is in pretty
good condition when the Fourth of July rolls
round, and you haven't got the harbor full of
unsold coal. Some coal men can go away for
their Fourth of July holidays this year without
having to worry all the time they are away about
what they are going to do with surplus coal at
the piers the moment they get back.”
The committee on general welfare of the
board of aldermen of the city of New A'ork gave
a hearing on last Friday afternoon on the ordi¬
nance introduced by Aldenrian Gaynor of Brook¬
lyn, which provides that all coal sold or deliv¬
ered in quantities of loi) pounds or less in bags
or baskets shall have marked on the container
in letters one-inch high the weight contained in
the container. The ordinance provides a fine of
$50 on conviction for a violation of the ordi¬
nance, and it also i)rovides that on conviction the
commissioner of weights and measures shall post
a sign on the door of the convicted dealer for a
period of ten days, setting forth details of the
violation. There was no oposition to the ordi¬
nance, and the only persons appearing in its
favor was Alderman Gaynor and a representa¬
tive of the Brooklyn Coal .Association.
No. 2]
THE BLACK DIAMOND
39
Philadelphia Trade.
The Piers Are Cleaned up Because Ship¬
ments Decrease as the Bunkering
Demand Increases.
Office of The Bl.\ck Di.wiond,
1400 Land Title Building,
Philadelphia, July 8.
The pier situation has cleared to quite an ex¬
tent. Requirements for hunker coal have been
better, and that, with picking up of occasional
cars, together with shipping restrictions from
the mines, has been the cause. Coal that could
be taken at $1.10 ten days ago by mid-week was
commanding $l.a.‘j and even a nickel more for
some particular lines of Somerset that were
wanted for steamship purposes. In relating this
betterment the dealers who operate on the piers
expressed the opinion that there had been a se¬
vere lesson taught to those operators who take a
flyer by shipping too much coal to the piers,
and if this is the case there should be a fair
profit there as long as a moderate amount of coal
is offered.
Even western Maryland coals benefited from
the clearance at the wharfs. The price quoted
on these has been stationary around 7.1 to SO
cents, and this was advanced a nickel, or to
80@8r> cents during the week.
Best grades of Miller vein are quoted at $1.25
@1.30, with a fair inquiry for spot offerings.
The ordinary grades of this Somerset coal are
draggy around $1.05 to $1.10.
In the Punxsutawney-Reynoldsville district re¬
ports show that the mining is not as active as
has been up to the middle of June, though a
fair movement is reported to Canada and west¬
ern New York state. Run of mine has a range
of $1.05 to $1.30, depending upon quality, and
slack is quoted from 80 cents up. Smithing and
screened lump has been bringing $1.25.
Shipments from the Greensburg district con¬
tinue heavy toward Baltimore, and New York
has been taking a fair quantity. Run of mine
brings $1.10 and screened $1.20.
Anthracite Situation.
The first week in July is always taken by the
anthracite people to be the most ‘'off-color" week
of the year. This has been no exception. Re¬
tailers have been marking time with such severity
that orders are about as scant as hen’s teeth.
With the householder taking to the tall timbers,
where cooling breezes blow, deliveries locally
now strike their minimum. Egg and stove coal
are the only large sizes that meet inquiry, while
pea is sadly neglected.
With the restriction in production due to the
holidays, dealers are inclined to believe that
there will be a stiffening in lioth Nos. 1 and 2
buckwheat. Rut, as has been said above, orders
are not coming in, and a stiffening of price de¬
pends on the future.
Reports from the operations show that more
independents were curtailing or had actually
suspended operations at July 1st than for some
years past. The storage stocks that are being
carried are known to be as heavy as has been,
and some of the independents declare that if
prices are to maintained in the fall this is the
time to conserve.
Philadelphia Trade Notes.
Arnold Gerstelle of Percy Heilner & Son made
a mid-week trip to New York.
Harry K. Stauffer of B. Nicoll & Co. paid a
visit to the New York offices of that concern
this week.
George 1). Watts of the Makoma Coal Com¬
pany and George D. Watts & Co. was another
of the New York visitors this week.
Abel Mishler of the Blaine Mining Company
dropped into the local offices Wednesday while
en route from New York to the mines.
Charles A. Storck, general sales agent of the
J. B. Jenkins Coal & Coke Company, was in
Philadelphia late last week and left for a trip to
western Ohio cities.
W. C. Huber, general eastern sales agent for
the United Coal Company, returned to the local
office of the company after a four-day trip to
Boston and New York.
N. D. Cortright of Mauch Chunk, with Mrs.
Cortright, left for a summer excursion to the
Berkshire Hills. They motored through Jersey
and crossed the Hudson at Poughkeepsie.
J. S. Wentz paid a visit to the offices of his
companv late last week while en route to Ri-
mouski and other Canadian fishing grounds.
where he will spend a few weeks angling for the
lordly salmon and other monarchs of the finny
tribe.
T. W. Arnett, general manager of the Antler
Coal Company, completed a trip from northern
Ohio to the Atlantic seaboard and started for
his home in Eairmont, W. Va., early this week.
John E. Sheets and R. S. Feeney of H. H.
Lineaweaver & Co. (Inc.) left last week for a
motor tour of the Berkshire Hills and other of
the eastern coast summer resorts late last week.
J. Edward Hil)lein, manager of the Baltimore
office, and G. J. Geers Jr. of the New York of¬
fices of the (Juemahoning Coal Company were
visitors at the local office of the company early
this week. Caroline McDonnell of the local
force is spending her vacation at a camp on
Lake Nepahwin.
The value of organization was pointed out by
a coal operator this week, who saw fit to draw
a strong contrast lietween the protest that has
l)een offered by the grain shippers against a
change in diversion charges by the railways, and
the quiet acceptance of the same charges by the
coal men. In March the lines entering this city
ordered a fee ranging from $2 to $5 for diver¬
sion and rerouting in transit. The coal men,
without any association to fight for their rights,
accepted the charge as inevitable, and there the
matter rested. The grain men, when it came
their turn to meet the charge, raised a fine old
hullabaloo. Organized effort, backed by legal
ramifications and plenty of newspaper protest,
has caused a hearing before an examining at¬
torney of tbe Interstate Commerce Commission.
"Oh, for a Moses that would liand the coal men
together,” said the commentator. "The coal man
has more problems to meet, more battles to
figbt and more adverse criticism to contend with,
and yet he gets nowhere because it is every man
for bimself and the devil take the hindermost.”
Baltimore Trade.
Baltimore, July 8. — (Special Correspondence.)
— The coal trade here welcomed the Fourth of
July, which brought practically a three-day lay¬
off in both the mining regions and in the offices
in this city. Some holiday periods of the past
have been generally unwelcome because they in¬
terfered with a rush of business, Imt in the face
of present conditions the lull caused no inconven¬
ience.
After the tremendous rusli of exports for June
has come a period of decrease, at least for a
time. For the week ending Jul>- 3 the cargo ex¬
ports from Baltimore totaled 42,205 tons, and
tlie bunker sales to coal carriers, 0,442. A falling
off in the number of coal charters is also noted.
Coal men here, however, say that contracts ex¬
isting or at present pending for foreign coun¬
tries assure a continued big tonnage. Whether
it will hold to the great movement of the past
two months is a question, however.
There is an air of confidence in the coal trade
as to the future, despite the fact that no big im¬
provement is noted in any direction. I''uel is
still offering at remarkably cheap rates, much
below actual jiroduction costs, but what little
change that comes just now is for the better each
time.
Prices to the trade at the
mines may
be quoted
as follows :
F. O. B.
F. o. B.
Fairmont —
Mines.
Baltimore.
Tliree-quarter .
$2.23@2.2S
Run of mine .
2.18@2.23
Slack .
1.88@1.93
Somerset —
Best .
1.2.)
2.43
(looci .
1.10
2.28
\V. M. R. R.—
Freeport .
.80
1.98
H. & O.—
Freeport .
1.93® 1.9S
V. R. R.—
Best South Fork .
1.3.5
2. .53
Miller Vein .
1.10
2.78
Ordinary .
. .9(l@ .<)5
2.0S@2.13
Noliody talks of rail movement these days.
With the roads spending no more than absolutely
necessary on rolling stock, etc., a liig howl would
probably be the vogue just now if general busi¬
ness was not so flat. As it is, the movement
seems pretty good, outside of an occasional iso¬
lated complaint.
A little lietter demand is developing for coke.
Several cargoes on exiiort were noted recently.
The steel mills are also calling for an increased
amount of coke. Best Connellsville is bringing
around $2.3(1 to $2.35 for seventy-two hour foun¬
dry, with forty-eight hour at $!.()() to $1.70.
West Virginia seventy-two hour commands from
$2.00 to $2.15, with forty-eight hour at $1.55 to
$1.()0.
Anthracite conditions are uninteresting. The
summer household trade is also dull here at this
time, and it will be several weeks now before the
majority of unsupplied householders will be look¬
ing up their coal.
Nc’w England Trade
Boston, July 8. — (Special Correspondence.) —
The wholesale anthracite and liituminous mar¬
kets of New England have not as yet fully re¬
covered from the effects of the July 4th holi¬
days. Then, too, the vacation season is on, and
consumer, retailer and wholesaler are all more
or less upset by this fact. As a result, business
has slowed up a little, but indications are that
it will pick up again within the next week.
The slowing up of buying is more noticeable
in anthracite than in bituminous. While no
increase in contract buying is reported for the
past week, local soft coal houses say there has
been no falling off, and most everybody appears
quite cheerful over the future. There is no ques¬
tion but that the New England mill situation is
steadily improving, and this increased activity,
together with the filling of foreign war orders
by other manufacturers, spells a still greater con-
sum[)tion of liituminous and more prosperity for
the local selling houses. The strangest fea¬
ture of the New England soft coal situation is
the inactivity of the spot market. At Mystic
Wharf, for instance, the demand is so light that
New River and Pocahontas seldom bring more
than $3.00 per ton on cars, and Georges Creek
usually sells for $3.90. A year ago prices ruled
twenty to twenty-five cents per ton higher than
quoted today, and the demand for coal at Mys¬
tic Wharf was quite active.
Local dealers claim they are at a loss to ac¬
count for the Mystic Wharf situation. One man
says, however, that conditions there are un¬
doubtedly due to the fact that contract ])rices
have been cut to a point where it is more prolit-
able for the consumer or retail dealer to buy on
a f. o. b. Hampton Roads basis than in the
Mystic Wharf spot market. It is true that some
shippers have been cutting contract prices owing
to keen competition, but a majority of firms
insist they are not. Certain it is, however, that
from a New England standpoint the contract
market is firmer than it was a month ago and
that prices in the future are more likely to ad¬
vance than decline. Pennsylvania bituminous
continues to move fairly well, with prices I’irm on
a liasis of eighty cents to $1.50 per ton on cars
at the mines. Local receipts of Canadian and
Nova Scotia bituminous are increasing all the
time, but practically all of these are consigned
either to the Boston & Maine Railroad or to the
New England Coal & Coke Company. Very few
if any of these coals find their way to the open
market.
The restriction of output occasioned by the
holidays has materially influenced Boston’s re¬
ceipts of anthracite since last reports, and ship¬
ments to New England all-rail points have de¬
creased as well. New buy-orders made their
appearance yesterday and today, and almost
every house expects to close more business be¬
fore tbe end of the calendar week. At Mystic
Wharf stove and egg are quoted at $5.9(1 per ton
on cars, and nut at $0.25, while at Portsmouth
prices rule fifteen cents per ton more. Stove
and egg alongside Boston Harbor are $5.05 per
ton, and nut $5.90. Local and nearby retail
prices on anthracite have been advanced twenty-
live cents per ton, Imt the higher prices so far
have not stimulated the household demand.
The marine freight rate market presents no
new features, h'or bituminous space the average
asking rate from Hampton Roads to Boston is
unchanged at seventy-five to eighty cents per
ton, while from Baltimore rates run from seven
to ten cents a ton more. Some shippers of an¬
thracite who previously had not covered them¬
selves are finding some difficulty in securing
space, and as a result freight rates are very
strong on a basis of fifty to fifty-five cents per
ton from New York to Boston.
The American Agricultural Chemical Com¬
pany has purchased the Stewart wharf on Med¬
ford street, Charlestown, occupied for many years
by the James P. Stewart Coal Company. The
lirojicrty coinjirises sixty-five thousand square feet
of solid land and twenty-five thousand of dock,
with several buildings used for offices, sheds, etc.
The total assessed value is seventy-three thou¬
sand, but the price paid for the jiroperty was con¬
siderably in excess of this.
40
Buffalo Trade.
Buffalo, N. Y., July 8. — (Special Correspond¬
ence.) — The shipments of anthracite from this
port for June were 018,336 tons, as against 805,-
879 in the same month last year. This j'ear’s
shipments to July 1st amount to 1,420,378 tons,
compared with 1,409,325 in the corresponding
period of 1914. For the past week the shipments
were light, owing to the holiday, and amounted
to 95,785 tons, as follows : Duluth-Superior,
47,200 tons ; Chicago, 22,500 ; Sheboygan, 9,000 ;
Waukegan, 6,850; Fort William, 3,000; Milwau¬
kee, 2,700; Marinette, 1,800; Lake Linden, 1,500;
Green Bay, 1,235.
The lake movement of anthracite is expected
to continue on an active basis this summer, as
there is plenty of coal to be had and scarcely
any demand for it from retailers, who are carry¬
ing large supplies, for which they have but little
call. It is to be an uninteresting month from
the retailer’s standpoint, as consumers will un¬
doubtedly pursue their same policy of holding
off as they did in June. Much effort has been
made to induce the dealer to buy more coal,
but without success. Many dealers are carrying
all they have room for, while others are carrying
as much as they feel able to pay for. Independ¬
ents are in some instances making lower than
schedule quotations, and the market is generally
spoken of as weak.
The bituminous trade is reported to be a little
stronger than a few weeks ago, with many buy¬
ers finding it necessary to take a car or more
extra per week and others laying in coal for the
first time in months. Industries are recovering
from the depression very slowly, however, and
coal orders are coming in much less freely than
usual at this season. The great trouble with this
market is that the Canadian trade has been cut
off so largely by the war. Lately many of the
Canadian plants have begun to prepare to fill
war orders for ammunition, and this will un¬
doubtedly have a stimulating effect upon general
business and make the coal trade a good deal
more active.
Prices in bituminous have dropped down to a
low level recently, the market for slack being
weaker at present than for some weeks. Good
slack from the Pittsburgh district can be bought
for spot shipment for about $1.85 here, which is
about 30 cents below the contract quotation. De¬
mand for slack is very small. Three-quarter coal
is bringing less than a short time ago, and little
is called for for spot shipment.
Buffalo Trade Briefs.
W. N. Gatfield of the Pittsburgh Coal Com¬
pany staff at Sandwich, Ont., was a visitor here
this week.
P. G. Roth of the Consolidation Coal Com¬
pany’s sales force at Detroit was here part of
last week.
E. S. Keay, western sales agent of the Skeele
Coal Company, has gone up the lakes for a busi¬
ness trip, accompanying President E. J. Skeele.
Reports from the Allegheny Valley coal fields
state that quite a few Italians have gone back to
their native land to join the army. A labor
shortage seems likely this fall.
The Pennsylvania Railroad has restored two
passenger trains between here and Pittsburgh
and also an accommodation train to East Brady,
much to the satisfaction of coal men.
Miss M. M. Moll, former sales agent of the
Avoine Coal Company and for some time with
the Keystone Coal & Coke Company office, has
gone for a five weeks’ trip to Vancouver, B. C.
Iron ore receipts at this port have been heavier
this year than last by about one-third. This
year’s figures to July 1st were 997,600 tons, of
which 625,341 came in during June. Last year
to July 1st the receipts were 733,393 tons. Steel
interests are predicting a heavy year in ore
shipments.
B. W. Wister, northern sales manager of the
Bader Coal Company, returned this week from
a trip to Boston, Mass., where L. F. Bader, presi¬
dent of the company, entertained the sales
agents and salesmen of the company’s different
offices at his summer home at Brier Neck, on the
north shore.
John VanDorn, former postmaster at Mt. Mor¬
ris, and a partner in the coal business with Jacob
Knappenberg there, died on July 4th, aged 78
years. Fie was a prominent resident of the vil¬
THE BLACK DIAMOND
[July 10
lage for a number of years, and was at one time
in business at Towanda, Pa. He spent the win¬
ter in California, returning home in a critical
condition. He leaves a wife and two sons.
The shipments of coal by lake from Sodus
Point, on Lake Ontario, to the St. Lawrence
and Canadian territory is proceeding at a very
slow rate. Quite a number of shippers have coal
there, for which no demand exists at present.
The Canadian trade is very dull, and there is
fear that the congestion at that port will after
a while provoke the Pennsylvania Railroad to
put car service rules into operation there.
Denver Trade.
Denver, July 8. — (Special Correspondence.) —
The retail market is dull here this week, and
jobbers report only a fair business. Weather
conditions are ideal for the ice dealer, but offer
small encouragement to the coal dealer. The
lignite mines are making a very light tonnage,
the average running time for the whole northern
district not exceeding two days for the past
week.
The Trinidad mines are running full time and
are hard pushed on railroad and steam con¬
tracts. In addition, they are getting their share
of storage orders and are several days behind on
filling of orders.
There is a decided slump this week in storage
bookings. There was a general rush to place
orders before the advance effective July 1st, but
dealers generally seem in no hurry in placing
orders for either July to August delivery, as the
price for both months is the same. It is prob¬
able, however, that July business will yet line
up all right.
The Walsenburg district has felt the slump
more keenly than other districts, the week’s out¬
put running about 60 per cent of normal.
Routt county mines are all running full time,
and are not able to catch up on the filling of old
storage orders.
So far as prices are concerned, the slack sit¬
uation is unchanged. Lignite slack is rather
scarce, but heavy consumers are satisfied with
Routt as a substitute and, in some few instances,
mine run. The supply of bituminous is lighter,
but there is sufficient for all present require¬
ments.
Prices for lignite coal, f. o. b. mines, are as
follows : For Denver delivery — Lump, $3.35 to
$2.65 ; mine run, $1.50 to $1.65 ; slack, $1.05 to
$1.25. For delivery to points outside of Den¬
ver — Lump, $3.50; mine run, $1.55 to $1.65;
slack, $1.05.
Canon City District — Lump Nut
For shipment May and June . $2.50 $2.00
For shipment July and August . 2.76 2.25
Add 26 cents to above prices for washed nut.
Walsenburg District —
For shipment May and June . 2.50 2.00
For shipment July and August . 2.75 2.25
Washed nut 25 cents per ton additional.
Chestnut, $1.25 for entire season.
Trinidad District —
For shipment May and June . 2.00
For shipment July and August . 2.00
Routt County District —
For shipment May and June . 2.60
For shipment July and August . 2.76
Western Slope District —
For shipment May and June . 2.25
For shipment July and August . 2.50
From Baldwin, shipments for points east of
are 76 cents per ton less than Walsenburg prices.
1.7S
1.71
2.01
2.2i
Denvel
Birmingham Trade.
Birmingham, Ala., July 8. — (Special Corre¬
spondence.) — While actual conditions have not
improved to any great extent and trade is quiet
with all classes of coal, there are indications that
some improvement will be noted soon. This is
especially true in regard to the use of coking
coal and it is probable that four or five furnaces
will be put in blast which have been idle for
several months. Appearances seem to be better for
the steam coal trade as contracts, both large and
small, are being received right along. One of
the largest last week was for 500,000 tons for the
Southern Railway. Cotton oil mills which usually
get coal supply from this district are placing or¬
ders. The Mississippi Cotton Oil Company closed
contract with Pratt people for 25,000 tons. The
Southern Cotton Oil Company has closed con¬
tract with Alabama Company for 25,000 tons.
Numerous smaller contracts are being received
by the different companies selling steam coal.
As to domestic coal very little buying is being
done by either yard men or in most cases con¬
sumers, though business is fairly good with dealers
who are quotin.g low prices for high domestic
coal. Usually about this time of the year retail
coal prices are advanced slightly, but thus far no
advance has been made.
The renewal of the larger contracts for coal
has about been completed. ^It is announced for
this week that one of the iron making companies
has received a contract for upwards of 200,000
tons of coal to be delivered during the next
twelve months, this being new business. Delivery
on the contract will be started shortly. With
what is consumed at plants of its own and con¬
tracts received heretofore, this company will be
called upon, it is figured, to supply more than 2,500
to 3,000 tons of coal per day.
E. H. Coapman, vice-president of the Southern
Railway, has placed contracts with Alabama coal
operators for a tonnage of approximately 500,000
tons of coal for the years 1915-16.
The Pratt Consolidated Coal & Iron Company
got about the same tonnage as last year. This
tonnage will amount to about 200,000 tons. This
was the largest individual contract. Contracts were
also obtained by the Stith Coal Company, the
Bryan Coal Corporation, the Burnwell Coal Com-
pany, the Barney Coal Company and a few others.
Freight officials of all the lines operatin.g from
Birmingham to the Mississippi Valley, and coal
operators from Ohio, Kentucky and Illinois began
to register at the local hotels early this week,
preparatory to the hearings Tuesday and Wednes¬
day before Interstate Commerce Commission Ex¬
aminer Bissell. The local operators are seeking
a new differential to the Mississippi Valley, claim¬
ing the Illinois and Kentucky coal fields enjoy
better rates than Birmingham. They sell a lower
rate in order to be on a competitive basis. Among
the officials and coal operators here now are :
B. J. Rowe, coal traffic manager of the Illinois
Central ; Eugene McAuliffe, general coal a.gent of
the Frisco Lines; D. M. Goodwin, general freight
agent of the Louisville & Nashville, and F. H.
Harwood, representing the coal operators of Illi¬
nois.
Bibb County Domestic Coal —
Cahaba No. 2 .
Jefferson County —
Jefferson Seam —
Mine run .
Horse Creek mine run.
yet been
made.
F. O. B.
F. 0. B.
Mine
Birmingham
.$2.10
$2.40
. 1.85
2.15
. 1.70
2.10
. 1.15 Frt.
rate 30c
. 1.15@1.25
Frt. rate 30c
. .90@1.10
Frt. rate 40c
Most all coals based on this classification.
Shelby County Domestic Coal —
Montevallo fancy lump, $2.00 to $2.25. Frt. rate 30c.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
D. A. Thomas, the well-known Welsh coal
operator, arrived in New York on Monday to
look after the interests of the British Govern¬
ment in its purchases of munitions on this side.
Mr. Thomas was accompanied by several secre¬
taries and several representatives of his govern¬
ment, and was met at the pier on his arrival by
the British Ambassador, Sir Cecil Spring-Rice,
and Willard D. Straight of J. P. Morgan & Co.
Mr. Thomas stated that he came over exclu¬
sively on government business, and would have
no time to look into coal matters. The purpose
of his visit to America is set forth in the Col¬
liery Guardian of London, printed the day be¬
fore his departure, and follows : Mr. D. A.
Thomas, chief of the Cambrian Combine, has
undertaken on behalf of the Ministry of Muni¬
tions to visit the United States and Canada, and
organize the operation of the munition con¬
tracts which have been placed across the At¬
lantic. As is well understood, the dealings of
the British Government with American manu¬
facturers have been financed through Messrs.
J. P. Morgan & Co., and one part of Mr.
Thomas’ work will be to revise the terms with
that firm, and to make arrangements for some
means of meeting British Government liabilities
in respect of war supplies instead of exporting
gold. Between ten and fifteen millions sterling
have already been sent forward to meet these
liabilities ; and there is a necessity to make some
change which will not involve depletion of the
Bank of England’s gold reserves. With Mr.
Thomas will go officials of the War Office and
of the Treasury; and Mr. Thomas’ well-known
acumen, combined with business associations
which he has established during his recent visits
to the United States and Canada, lead to the ex¬
pectation that national interests will be peculiarly
well served by his entrustment with this impor¬
tant mission. As previously announced, Mr.
Leonard Llewellyn, general manager of the Com-
liine’s collieries, has already taken up duty under
the Ministry of Munitions in London.”
Coal Convention and Meeting of Order Kokoal.
The tenth annual pow-wow of the Order Ko¬
koal, which this year took the form of a na¬
tional coal convention, was held in Chicago on
Monday and Tuesday of this week. The Audi¬
torium hotel was headquarters.
For a year the proposition of changing the
purpose of the order has been discussed. A
year ago it was proposed that this fraternal
organization should become the national voice
of the coal trade on all matters pertaining to
legislation, etc. During the year this program
has been discussed much, and from every point
of view. Some pessimists have said :
'“Can any good thing come out of Nazareth?
Can an organization of young men who have
devoted their time principally to riotous, but
sober, and undignified pleasure reform over night
and become the leader of a great industry?”
Others who were politely unkind but sarcastic
asked :
“Is it possible for young men to lead the old ;
for the inexperienced to guide the veteran? Is
it possible that the leaders will abdicate in favor
of those who want to lead?”
From these two pointed questions, discussion
has run the whole keyboard from condemnation
to praise. But all the while a few kept asking
the simple question ;
“Why not?”
That is, the doors of any coal trade organ¬
ization are open wide to any man, no matter how
big he is, to get in.
Why not, then, map out a definite purpose for
coal? Why not rally around that purpose the
men in the trade who are big enough to carry
it to success? Why not, in fact, create the pur-
After Two Days of Discussion, It Is De¬
cided to Form a National Association to
Study to Improve the Coal Business.
pose and let it act as a nucleus for the organ¬
ization? Under such conditions the parentage
does not matter. The father may be a young
Selection of Officers.
F. C. .'^twill presented the report of the com¬
mittee on nominations as follows :
President, James A. Ballard, sales manager,
Semet-Solvay Company, Detroit, Mich.
h'irst vice-president, William A. Clark, North¬
ampton Mass., president. New England Coal
Dealers’ Association.
Second vice-president, A. J. Moorshead, presi¬
dent, Madison Coal Corporation, St. Louis, AIo.
Secretary-treasurer, Arthur M. Hull, Monad-
nock block, Chicago, Ill.
Directors, Harry G. Trestor, sales manager,
A. B. Currie & Company, Omaha, Neb. ; Frank
F. Mathers, .of J. W. Mathers & Son, Philadel¬
phia, Pa. ; G. T. Rider, general manager, Scanlon
Coal Company, Louisville, Ky. ; Arch. Coleman,
president. City Fuel Company, Minneapolis,
Minn. ; John J. Gordon, of Robert Gordon Sons
Company, New York City; T. P. Bryan, of Gray-
Bryan-Sweeney Coal Company, Kansas City,
Mo. ; Charles F. Kerchner, of Hall Brothers &
Company, Baltimore, Md.
Their election was unanimous.
man or old — a fun lover or a wiseacre. The
purpose is the thing.
In the latter spirit the coal men got together
in Chicago this week. The spirit in which the
organization was discussed was, at this meet¬
ing, changed from what it was a year ago.
Then a determination was evident to leap into
the mastery of the business. Those who came
to the eonvention this week were more modest
and hence more likely to succeed.
They did not talk of leadership. Rather, they
said among themselves :
"Let us study the coal question. Let us study
what eoal needs most. Let us try, after a study
of its needs, to devise a program that will fit
those needs.”
Thus from the proposal of a year ago the
program shifted gradually during a year. At
the closing session of the convention the object
was so far changed that there was presented the
idea of a guild or a student body wherein men
would gather to go to school to learn their craft
of producing, selling or distributing coal. They
know that the business is disorganized, without
a definite aim and has no harmonious and pro¬
gressive program of production and distribu¬
tion.
So there was discussed the idea of a guild
in which all of these problems can be studied
by those eager to learn.
In fact all the way through the convention
there was expressed this one idea :
“Let us study the needs of coal and let us
study them as that has never been done be¬
fore.”
Thus it is a modest beginning which the new
The Coal Banquet in Chicago on Monday at Which Was Formed the New National Association.
42
THE BLACK DIAMOND
[July 17
association has, but it is purposeful. And, what
is most to the point, men who sat in that meet¬
ing, few though they were, were definitely in
earnest. They mean to succeed.
What the Convention Did,
As to the concrete developments : The com¬
mittee on constitution and by-laws presented a
partial draft of its recommendations. It pro¬
poses to change the name of the Order Kokoal,
temporarily at least, to the National Coal Asso¬
ciation.
The names of the officers were put upon a
business basis. Thus the chief executive of the
association is the “president” and there are vice-
presidents and all of the other officers down to
a board of directors.
The present purpose is to retain the name of
The National Coal Association for the national
body and then to call the local organizations
“guilds” instead of “breakers.”
There was elected a complete list of officers,
which is given in the proper place. The leader¬
ship of the new organization was placed in the
hands of James A. Ballard, general sales agent
of the Semet-Solvay Company of Detroit. In¬
cluded in the list of officers are such men as
Charles F. Kerchner, of Baltimore ; John Gordon,
of New York; A. M. Hull, of Chicago; G. T.
Rider, of Louisville ; A. J. Moorshead, of St.
Louis, and T. P. Bryan, of Kansas City.
It was also decided to increase the dues to
$.j a year and to increase the initiation fee to
the same amount. The by-laws provide for the
admission of associate members, who shall pay
$10 a year and shall be admitted provided they
employ a member of The National Coal Asso¬
ciation.
The Opening Session.
The meetings of this coal association began
at two o’clock on Monday and lasted, almost
without interruption, excepting for a little time
to sleep, until the afternoon on Tuesday. There
was a session Monday afternoon filled to the
brim with discussions of what it costs to do
business. There was a little respite after that
during which motion pictures of the anthracite
mines were shown. After that the men took a
little time to stretch their legs and to take the
air.
Then, at 6 :'M) o’clock Monday night there was
a banquet in the Auditorium hotel. While the
dinner was being served professional entertain¬
ers were on an impromptu platform. Following
that, there was the appointment of committees
and then A. M. Hull, who had acted as chair¬
man in the afternoon and the fore part of the
evening, turned the banquet over to F. S. Pea¬
body, who acted as master of the toast.
Mr. Peabody did not devote very much time
to speechmaking himself, but confined his re¬
marks to the statement that he and others are
very much encouraged by the attitude of the
Trades Commission toward business in general.
He was encouraged especially by the idea adopted
by the Trades Commission that the government
should try to induce people to study what it
costs to do business rather than to prosecute
them for trying to make a living out of it.
From that on there were more than two
solid hours of discussion of various phases of
what it is costing to produce and handle coal.
W. S. Bogle opened the discussion by a ten-
minute talk on whether prices had kept up with
the rising cost of production, and C. M. Moder-
well closed the meeting by a very short address
on “The Value of a Definite Aim.” In between
there were four very purposeful papers. These
are reproduced elsewhere and no further refer¬
ence to them here is necessary.
The Tuesday Meeting.
At 9:30 o’clock on Tuesday morning the dis¬
cussion started again.
In the meantime, the committees appointed the
preceding evening went into session— one of
them to nominate the officers, another one to
formulate the resolutions, and a third to make
the necessary changes in the constitution and
by-laws. It was 11 o’clock before these com¬
mittees were ready to report, and by that time
the speeches had been delivered.
Also there were a couple of presentations.
Morton Hiscox, on behalf of the Order, gave
Charles K. Scull, the retiring imperial modoc,
a handsome gold watch. The modoc in turn
presented E. F. Smith, the imperial pictor, with
a gold watch. Both of these gifts were in¬
scribed, saying that they were given to the re¬
cipients by the members of the trade out of
consideration for the work faithfully per¬
formed within the last year. At the conclu¬
sion of this very pretty ceremony F. C. Atwill
took the chair and a motion was presented to
make Retiring Modoc Scull a life member of
the Order.
It was at the conclusion of this ceremony that
the committee on resolutions made its report.
This committee had been working most of the
morning and suggested for the Order the new
name, the “National Coal Guild.”
Almost immediately following there was pre¬
sented a report of the committee on constitution
and by-laws which suggested the name of “The
National Coal Association.”
Rather a lively debate ensued, led by the
editor of this paper on one side as the advocate
of the guild idea, and on the other side by
Charles Kerchner of Baltimore, who was chair¬
man of the committee on constitution and by¬
laws; A. M. Hull, Morton Hiscox, Leo Roman-
ski and Homer Allen. At the conclusion of the
this debate, which, while lively, was one of the
pleasant features of the morning session, it was
suggested by Mr. Hull, and adopted by the con¬
vention, that any name which might be taken
now was purely temporary. Therefore, he pro¬
posed that the name, “The National Coal Asso¬
ciation,” be adopted for the major organization.
James A. Ballard.
and that the name of “guilds” be .given to the
local organizations which shall take the place
of the old breakers.
Address of Welcome.
In his address of welcome, C. L. Dering, presi¬
dent of the Chicago Association of Commerce
and western manager for S. C. Schenck Com¬
pany, said in part :
"If I may venture to go a bit further, Mr.
Chairman, than is ordinarily contemplated in an
address of welcome and presume to advise you,
out of an experience born of a lifetime of learn¬
ing by mistakes.
“It is my understanding that from this honor¬
able Order Kokoal and its ten years of happy and
joyous existence, it is proposed to form a na¬
tional organization of coal dealers based upon
broad and ambitious lines.
“Some one has said : ‘Association work is the
composite of the inidvidual mind, tried by the
fire of general criticism, welded and tempered
by thoughtful consideration. It represents not
only the beginning but the maturity of mind and
the structural strength defies assault.’
“Now the trouble, it seems to me, is that in
the coal trade we lack co-operation that spells
prosperity, in that we lack organization and we
lack system. Mr. A. W. Shaw of System Maga¬
zine in a recent issue says :
‘ “In times of opulent plenty, business can wink
at a thousand weaknesses — and the profits will
cover them up. But when conditions tighten,
the wastes cannot be concealed. Mistakes are
spotlighted, and careless methods stand forth as
despoilers of dividends and progress. And out
of the crises comes new knowledge that means
new power. This is inventory time in American
business— a time for trial balancing, not alone
our physical assets, but our mental and moral
capital.’
“Colonel Goethals, speaking of the work on
the Isthmus, said that each man was given to
understand that his particular work was the piece
that was essential to the proper completion of
the balance.
“We are living in a period of evolution; organ¬
ization is the order of the day. Let’s have done
with bickerings and jealousies in the coal trade;
let’s organize a great national association.
“Don’t let’s be so afraid of what will happen
if we do things, but let’s be more afraid of what
will happen if we don’t do them.
“Let’s work in the spirit of that stirring slogan,
‘Do it Now.’ Let’s form the strongest national
organization of coal dealers possible and by a
strong organization I mean an aggregation of
interests working through committees of special
functions — committees that never sleep, whose
sphere is definite and whose work is subject to
confirmation or repudiation by a central body.
“An organization of men who, whatever their
purpose to bring some good to themselves out
of co-operative action, will sacrifice for the com¬
mon good and give time and money for the trade
as a whole.
“Such an organization willl exercise a refining
influence upon business and introduce economic
science in the place of speculation particularly
vvith respect to costs of production and distribu¬
tion-will create a spirit of loyalty to our com¬
mon business and of charity and forbearance
toward one another.
“In considering problems of business legisla¬
tion it must not be forgotten that the present is
a time of changed ideas regarding both business
and legislation.
“Business today views without alarm so mo¬
mentous an innovation as the establishment of
the Federal Trade Commission. A few years
back such a departure in national affairs could
only have been regarded as a menace — a blow
to the inalienable rights of business to work out
its own salvation.
“And business, too, is regarded in a new light.
Once it was represented in legislative halls only
by seekers for special privilege. Now it deals
openly and squarely and pleads its case upon the
merit of its cause.
“We are a great commercial and industrial
nation. A stream can rise no higher than its
source, neither can our commercial strength as a
nation be greater than the prosperity of the
individual business institutions of the country —
the big man and the little man. And it is be¬
cause we are coming to understand this — because
we not only theorize about fair play in business
and ‘the square deal,’ but are working together
to develop a practical plan to realize the ‘square
deal’ and guarantee to business the largest oppor¬
tunity for legitimate development — it is because
of these things, I say, that we now expect more
of our business men just as we now expect more
of our lawmakers. Because of these things, too,
we entertain confident hope for the future — a
future wherein business not hampered by de¬
structive legislation, but assisted by constructive
legislation, may prosper and the nation prosper
with it.”
Elmstrom Welcomes Retailers.
At the opening meeting on Monday, there
was an address of welcome to the retailers by
Wm. D. Elmstrom, president of the Chicago
Coal Merchants Association. He said :
“Most of us during our lifetime have received
a shock of some sort or other. Some shocks are
of little or no consequence, others are of a more
serious nature. One of the serious shocks that
I have received during my experience was when
I received a letter from our distinguished
Brother Hull, chairman of the convention commit¬
tee, announcing the fact that I had been assigned
the duty of giving a short address of welcome
to the retailers of this convention.
“While I am disposed to criticise him severely
for disturbing my peace of mind, I respect him,
nevertheless, and admire his good judgment in
requesting me to make my address short.
“Those of you who know me best, know that
I am not qualified to make an address ; those
of you who know me least, will be of the same
opinion before we part. However, in behalf
of those whom I represent, I wish to express to
the officers in charge of this convention, our
very sincere appreciation for the courtesy and
honor you have accorded us on this occasion.
“I note with much satisfaction that the Order
Kokoal stands for good fellowship, honorable
dealings, high business integrity, and a square
deal. These principles should not only be prac¬
ticed among ourselves, one with another, but
should be equally applied toward the public
with whom we do business. May we not be
proud of the fact that we have the privilege and
No. 3]
THE BLACK DIAMOND
43
opportunity of being affiliated with an organi¬
zation that has such splendid ideals and busi¬
ness ethics? While the product we handle is
black, let us ever keep in mind and let it be
our constant aim to so conduct our business,
along the lines as set forth, that ere long, we
can with pride and much satisfaction say, that
our business is white instead of black.
“We are informed that one of the important
matters before this convention is to devise ways
and means of perfecting a National Organiza¬
tion, with a view to improving the condition
of the entire trade, and we all know, to our
sorrow, that there is ample opportunity for a
movement of this kind. I firmly believe that
you are on the right road to accomplish this
end, and have every confidence to believe that
you will meet with success. Much can be done
along educational lines in all branches of the
trade, in proper and systematic accounting, so
that the trade will know, at all times, the cost
of doing business and the true state of affairs
of their business.
“Let us gather up the fragments of loose busi¬
ness methods, cast aside all selfish motives which
are the cause of most of our troubles, and so
cement together our common interests that noth¬
ing can part us ; then and only then can we
hope to succeed.
“I have been requested to welcome the re¬
tailers. The welcome that I may extend to
you in a few words is inadequate to sufficiently
express to you the real sentiments we cherish
of your presence among us ; we wish to wel¬
come you, and think of you as brothers of one
common family or fraternity — a welcome with
a unanimity of goodfellowship, with all self¬
ishness eliminated ; a welcome which will be
an incentive to visit us, many times in the years
to come.”
Purpose Is Outlined.
The announcement of the proposed educational
policy was made by Chas. K. Scull, imperial
modoc, at the meeting on Monday afternoon. In
part, he said :
“Considerable thought has been given to the
future of Kokoal and more especially to the
real need of a live national organization in the
coal trade.
“Kokoal is the logical medium to start this
campaign of education. It makes no difference
whether the name Kokoal is retained or a new
one substituted. The organization is already es¬
tablished and has been for ten years. It is the
only one in the coal trade that is national in
character. Its constitution is broad so that all
that is necessary is to amend it to fit any live
policy that may be deemed best.
“The quickest way to stop price-cutting is to
educate the less informed members of the trade
to a knowledge of the actual cost of doing busi¬
ness. Kokoal can take up this work without
conflicting with any other organization and in
fact can quickly secure the active support and
co-operation of every association in the trade.
“Therefore we must have, sooner or later, a
purposeful National Coal Association, that can
and will co-operate with all the present and fu¬
ture operators, wholesale and retail association
and local coal exchanges, without conflicting in
any detail, but for the mutual material benefit of
all.”
Report of the Secretary,
At the beginning of his annual report, E. F.
Smith, the imperial pictor, quoted the resolution
adopted a year ago callin.g for a new coal body.
This resolution recited the need for such an
organization, and ended :
“Submitting these facts for your consideration,
we advocate the formation of a committee of
twelve or fifteen from among the representatives
of other trade associations to co-operate with our
new board of imperial eleven sentries in the
development of details, feeling that by pursuing
this policy Kokoal can establish itself as the
leading organization of the trade.”
The pictor then said, in part :
“Along these lines our Imperial Modoc, Mr.
Scull, called a meeting in New York City on
October 21, at which time there were present :
Thos. W. Ayers, past imperial modoc, Philadel¬
phia, Pa. ; W. M. Bertolet, secretary Pennsylvania
Retail Coal Merchants’ Association, Reading, Pa. ;
R. M. Ryar;, The Black Diamond, New York;
S. B. Crowell, chairman executive committee,
Philadelphia Coal Exchange, Philadelphia; W. A.
Clark, president New Eagland Coal Dealers’ Ex¬
change, Northampton, Mass. ; S. D. Hall, presi¬
dent Philadelphia Coal Exchange, Philadelphia ;
C. F. Kerchner, past imperial modoc, Baltimore
Md. ; F. F. Mathers, modoc, Philadelphia Breaker,
Philadelphia; A. H. Rice, commissioner. New
York City ; F. W. Saward, past imperial acolyte.
New York ; C. K. Scull, imperial modoc, Phila¬
delphia; E. V. Sidell, past imperial mazumer,
Poughkeepsie, N. Y. ; J. C. Tattersall, imperial
baronel, Trenton, N. J. ; J. D. Van Pelt, No. 1
Broadway, New York.
“A similar meeting was called to order by the
imperial pictor on November 11, those present
being: C. C. Hall, fuel agent, C. & E. L Ry.,
Chicago; J. A. Ballard, past imperial modoc,
Detroit; J. S. Van Epps, imperial baron, Qeve-
land, Ohio; Daniel Howard, imperial gazook,
Clarksburg, W. Va. ; Arch. Coleman, past im¬
perial modoc, Minneapolis ; Ford R. Cate, imperial
spotta, Detroit, Mich. ; C, M. Anderson, Colum¬
bus, Ohio ; H. H. Small, Goodman Manufacturing
Company, Chicago ; F. C. Atwill, imperial baronet,
Chicago; E. F. Smith, imperial pictor; H. W.
Redman; S. P. Hostler; S. G. Hale; A. T.
Murphy; Morton Hiscox; A. D. Casey; T. D.
Haskett; N. K. Kendall, commissioner, Chicago
Coal Merchants’ Association ; W. J. Dillon ; A. O.
Tandy, past imperial modoc.
“Subcommittees appointed at these two meet¬
ings met in Chicago on January 28, 29 and 30,
and the following resolution was offered by Past
Imperial Modoc Hull, which was voted to be
referred to the eleven imperial sentries :
“ ‘Whereas, It is the opinion of this conference
that there is need for a national organization to
promote social and trade relations in the coal
trade, which is best proved by the fact that the
Order Kokoal has existed for over ten years and
during that time has initiated more than 5,000
members, covering a large majority of the leading
and influential men in the trade in practically
every section of the country. Therefore, be it
“ ‘Resolved, That the Order Kokoal be con¬
tinued in fact, if not in name, as the principal
social and fraternal ofganization of the coal
trade ;
“ ‘That all horse-play be eliminated and abso¬
lutely prohibited from all initiatory ceremonies ;
“ ‘That in every program given under its aus¬
pices educational features must predominate ;
“ ‘That a bureau be established to collect, pre¬
pare and disseminate facts and fi.gures covering
the cost of producing, distributing and retailing
of the various grades of coal from the mine to
the consumer, in order to show the less informed
members of the trade, as well as the consumer,
what constitutes a reasonable price of coal in the
different sections of the country;
“ ‘That plans be formulated to give this educa¬
tional information under the leadership and aus¬
pices of the Order Kokoal before local Chambers
of Commerce, business men’s associations, and in
such other ways as may best promote the best
interests of all branches of the coal industry;
“ ‘That in order to properly present this change
of policy to the coal trade and to strengthen the
Order Kokoal throughout the country, that a
high-grade organizer be engaged to work along
lines as prescribed by the imperial eleven sen¬
tries.’
“At this meeting there were present : C. K.
Scull, imperial modoc, Philadelphia, Pa. ; F. F.
Mathers, modoc, Philadelphia Breaker, Philadel¬
phia; C. F. Kerchner, past imperial modoc, Balti¬
more, Md.; J. C. Tattersall, imperial baronel,
Trenton, N. J. ; W. A. Clark, president New Eng¬
land Coal Dealers’ Association, Northampton,
Mass. ; W. M. Bertolet, secretary Pennsylvania
Retail Coal Merchants’ Association, Reading, Pa. ;
J. S. Van Epps, imperial baron, Cleveland, Ohio;
C. M. Moderwell, past modoc, Chicago Breaker ;
Carl Scholz, president American Mining Con¬
gress; W. J. Dillon, past modoc, Chicago Breaker;
F. C. Atwill, imperial baronet; W. H. D. Gibson,
past modoc, Chicago Breaker ; N. H. Kendall,
commissioner, Chicago Coal Merchants’ Associa¬
tion ; A. T. Murphy, The Black Diamond;
Arthur M. Hull, past imperial modoc ; Morton
Hiscox, Retail Coalman; Sydney A. Hale, Coal
Trade Journal; E. F. Smith, imperial pictor.
“From the sentiment expressed at this meet¬
ing, and also from letters received from promi¬
nent coal men from all parts of the country, un¬
questionably the new policy will receive hearty
support and will result in greatly strengthening
the order.
Kokoal Membership.
“The fact that the coal trade, due to industrial
conditions, as well as extremely warm weather
in the winter season, has passed through the
worst two years in its history, undouhtedly has
shown its effect on Kokoal membership. Only
seven koruskations were held, they being as fol¬
lows :
24tst koruskation, held at Philadelphia,
October 16 .
242d koruskation, held at l^ouisville, No¬
vember 24 .
243d koruskation, held at Edmonton, Can.,
November 16 .
244th koruskation, held at Trenton, ' jan-
uary 5 .
245th koruskation, held at Trenton, Feb¬
ruary 19 .
246th koruskation, held at Philadelphia
April 29 . V..
247th koruskation, held at Chicago",
July 12 .
In addition to above Air. J. O. Hannah,
Edmonton, Can., was admitted by spe¬
cial dispensation .
Can¬
didates.
2
16
2
6
3
9
1
National
Fund.
$ 2S.77
4.34
65.76
8.22
24.66
12.33
36.99
8.28
“At the closing of our books the
list shows as follows :
1914-15 paid up .
New .
Life . . ! . !
Associate . .
1914-15 arrears .
Two years .
Assessment B . .
Total paid-up membership .
Total unpaid-up membership .
48 $189.35
membership
. 951
. 48
. 9
. 48
. 446
. 456
. 8
. 1,056
. 900
. 1,936
‘‘Complete financial report follows.
“In this connection it might be well to add
that some two thousand members were dropped
for non-payment of dues, no response being made
to warning circular sent out August 1.
“I regret to report the deaths of the following
Kokoals during the year: Moses P. Lawton,
Pittsfield, Mass.; Enoch T. Roberts, German¬
town, Pa. ; Guy G. Gibson, Chicago and New
York; Daniel F. Conner, New York City; Geo.
W. Thedford, New York City; C. M. Clute,
Bay City, Mich. ; George Theberge, Lawrence,
Mass.; T. A. Gadbois, Minneapolis, Minn.; P.
Burns, Toronto, Ont. ; Geo. F. Meyer, Indiana¬
polis, Ind. ; J. C. Kilgore, Chicago; Geo. W.
Weeks, Ann Arbor, Mich.; G. Robityek, New
York City; Joseph Zock, Michigan City, Ind.;
W. T. Irwin, Chicago; C. M. Van De Water,
New York, N. Y. ; F. B. Putchard, Toledo, Ohio.
“As is custornary under our constitution, these
names will continue to appear in our membership
lists, appropriately marked to show that they
are still held in loving memory.”
Financial Statement.
The trial balance at the closing of the books
for the year showed the following:
CREDITS.
Balance from R. S. Jones administration . $ 218.46
Charity fund . 4.87
Pin account, credit . 1.50
Postage and express account, credit, refund
from Skellett Co . 5.25
Current dues, as per cash book . 1,791.39
Back dues, as per cash book . 157.05
Initiation fees, as per cash book . 153.48
Educational and extension fund, as per cash book 245.00
1916 dues account, as per cash book . 2.11
$2,579.11
DEBITS.
Printing and stationery, as per cash book . $ 285.29
Postage and express, as per cash book . 282.89
Telephone and telegraph, as per cash book . 9.82
Rent and light account, as per cash book . 334.00
Salary account, E. F. S., 7^ months . 1,027.00
Furniture and fixtures, see ledger . 33.55
Traveling expenses, see ledger . 35.41
Towel account, see ledger . 8.50
Old bills account, as per R. S. J., see ledger. . . . 127.22
Bill folds account, see ledger . 112.74
Pin account, see ledger . 2.25
Petty cash account, to E. F. S., salary account,
July 1, 1915 . 50.00
E. F. Smith, personal, bond, see ledger . 5.00
Bank exchange account, see ledger . 18.46
C. K. Scull account, personal, see ledger . 95.98
Rack dues account. Dr., as per cash book . 12.66
Initiation fees. Dr., as per cash book . 16.12
Educational and extension fund, Dr., as per cash
book . 117.23
Cash on hand, $2.88 in M. L. T. Co., $2.11 in
drawer . 4.99
$2,579.11
The Modoc’s Address.
The antnial address of Imperial Modoc Charles
K. Scull of Philadelphia, Pa., was, in part:
“We have assembled here today to celebrate
the tenth anniversary of the Order Kokoal.
“The present imperial sentries have been handi¬
capped from the start, both financially and as to
membership. However, the imperial pictor will
present that data to you in his report.
“Since our induction into office we have been
up a.gainst conditions at home (with national and
state legislation, railroad rates and labor organ¬
izations), and abroad with foreign wars and
essential consequences, the like of which has
never before existed. These consequent troubles
have brought about the rule of the pessimist, the
(Continued on page 48)
44
THE BLACK DIAMOND
[July 17
Will Facts on Costs
By T. Percy Bryan. |
In attempting to answer this question, I am
doing so from the standpoint of the retail
dealer. The operator and jobber is as much
interested in the sulqect from this angle as is
the dealer for our interests are very mutual.
If the one is not successful the other cannot
long continue profitable business relations.
I will divide price-cutters into three heads —
1st, the dishonest discontented price-cutter; 2nd,
the honest, contented price-cutter ; and, 3rd, the
honest, discontented price-cutter. The first we
have always, lie is the Pirate. He is dishonest
in his methods and discontented with his re¬
sults, but his unfairness is bred in him and his
nature cannot be changed. What is a pirate?
Webster coniines him to the high seas, but Web¬
ster was a learned writer. II is knowledge of
the coal trade was vocabulary, not vocationary.
A pirate is a person who seeks by subterfuge
and trickery to appropriate the fruits of capital
and industry, lie is a vampire, flying by night
and sucking out the life blood of business, but
profiting not. The retail dealer cannot eliminate
liim. The operator and jobber might, but, alas,
3mu have him in your own ranks.
Under the second head we have the honest,
contented price-cutter. In him is the easy go¬
ing, more or less lazy man whose wants are
few and . who depreciates his own ability. He
is not numerous nor are his operations disas¬
trous to the trade. If he makes a thousand dol¬
lars, it is just that much more than he could
earn in any other job. He does not need knowl¬
edge ; he needs a bomb with a short fuse.
The third class comprises the rank and file
of retail dealers, long on desire of accomplish¬
ment and short on knowledge of judicious pro-
ceedure. Sometimes he keeps his books in his
hat, often on a wall file, and frequently in an
accurate set of double entry books ; bnt always
wanting to extend his operations and reap more
reward. He lets his competitor set the pace
in the matter of price, then to make sure, sharp¬
ens his pencil and goes to it. He figures that
he can make no money on what he does not
sell ; he cuts the price, shuts his eyes, and offers
up a silent prayer. Pie wants that piece of busi¬
ness but he does not reckon the cost. His edu¬
cation is lacking on the proper basis for figur¬
ing costs, exi)ense and price. This is the man,
and his name is Legion, in whom fertile soil
will be found for sowing the seed of knowledge.
And this is the class to which I belong, and you,
and you, and you.
How to Make a Price.
Do we know how to make a price? Do we
know how to figure costs? Some of us can
figure our expense per ton, but is that as vital
as it would seem? I believe that a campaign
of educating the retail coal man on an entirely
different basis is absolutely necessary to his fu¬
ture welfare. It would not only reduce |)rice-
cutting, but if it is not begun now, there will
never be a time when the coal man can close
his year's business with the satisfied feeling of
one who has got out all there is in the busi¬
ness. There is no such thing as regulating
prices. Our Uncle Samuel long since took up
the task of regulating regulators. The hap¬
hazard method now in vogue of trying to de¬
termine how much the market will stand and
naming a ])rice accordingly must he relegated
to the ash heap. I am advocating the same
method of fixing a price that has been used
for years by all other retail merchandising
houses ; natnely, cost per cent. W hat is the
difference in selling coal and selling dry-goods?
The dry-goods merchant has his overhead ex¬
pense, drayage and shortage. He figures his
cost of doing business on a percentage basis
and adds this per cent to his invoice cost. To
this he adds a recognized percentage of profit
and gets a selling price. Why should we not
do the same? W'e have more money invested
in one coal than in another. We should
have more net profit on 1000 tons of coal cost¬
ing $4.00 than on 1000 tons of $2.01) coal be¬
cause of the investment; and the heavier e.x-
pense of handling domestic over steam coal
makes it necessary that we add more expense
I)er ton to the high ])riced coal than to the
low. .\ per cent basis would give the dealer
*An address before the coal convention in Chicago on
July 12.
tSecretary-treasurer of the Oray'P.ryaii-Sweeney Coal
Company of Kansas City.
End Price Cutting?*
something definite to work on ; but he must
be educated to it.
He must be taught to keep his accounts in
such shape that he knows to a certainty how
many tons he has bought during the year and
the amount of money invested in the purchase ;
how many tons he has sold and the amount
of money received ; how many dollars he has
expended in carrying on his business.
I have heard it said many, many times that
a coal dealer cannot be taught, that he cannot
learn a lesson ; but when I see upon the stage
the progress made with geese, pigs and seals,
then 1 think surely there is something rtiachable
in the man.
The Proper Per Cent.
My ohservation through years of experience
as an accountant is that 33 1-3 per cent of the
cost of coal with freight added will just cover
the gross expense. By gross expense 1 mean all
the money expended in carrying on your busi¬
ness exclusive of invoice cost of coal and freight,
and including salaries of every kind, interest
paid, shortage, losses, etc. I do not believe 1
am extravagant when I say a legitimate net
profits is ten per cent of your coal cost.
At present we are concluding that a steam
coal costing $1.95 will stand a delivered price
of $3.00, and this price is probably fifteen or
twenty cents less than our present method shows
our per ton cost to be. On a per cent basis of
figuring, this coal can be sold for $3.80. But,
we conclude that a domestic coal costing $4.75
can be sold at a profit for $6.50. We cannot
afford to make that price. It nets us only ten
cents a ton. We should get at the very least
$6.90. A coal that costs $6.25 we think we can
sell at $8.50. That is an erroneous conception
of business. We should have $9.00 per ton.
The cost in your city will help me only in¬
directly. Your overhead may be similar but your
dock and yardage conditions are not the same
and you have a different drayage proposition
from ours. But my local conditions are the
same as the competitor’s in my city. You Chi¬
cago dealers all have similar conditions. Like¬
wise, Omaha, and Minneapolis. What would
help the Omaha dealer is an accurate com¬
pilation of facts regarding the business there,
given out by a recognized central body of the
coal fraternity and compiled by an unbiased im¬
partial representative of the body.
J. V. Thompson Holdings.
Josiah V. Thompson, former Uniontown
banker, who went in the hands of a receiver
January 19, last, simultaneously with the clos¬
ing of the First National Bank of Uniontown,
possesses coal lands and other property valued
at .1!65,367,758.()5, according to the appraisement
of an auditing firm filed with Judge J. Q. Van
Swearingen in the Fayette county courts re¬
cently. The ai)praisers were Julian Kennedy,
R. C. Crawford and R. M. Hite, being appoint¬
ed by the court.
According to the appraisement, Thompson
owns a total coal area of 141,413.68 acres,
and the surface area aggregates 12,411.94 acres.
The coal value in Greene county is .'i;32,647,-
900.50, the coal area being 58,403.97 acres. In
Washington county his coal area totals 10,-
172.29 acres, and is valued at $:i, 150,186.60.
In West Virginia the valuation is placed at
.$18,868,841 ..55, consisting of 72,103.29 acres of
coal. Properties in Washington and Greene
counties, on which plants have been built,
are valued at $397,205, the property aggregat¬
ing 3,976.05 acres. A valuation of $1,557,500
is placed on 562.4 acres of land in Allegheny,
Armstrong and Beaver counties. The prop¬
erty in Fayette county consists of 733.67 acres
of coal land and 7,877.49 acres of other land,
being valued at $2,646,506. Notes, stocks,
bonds, mortgages, etc., are appraised at $6,-
099,618.40.
Death of John C. Burns.
John C. Burns, the surviving member of
the firm of Burns Brothers, with yards at 2206
North Halsted street, Chicago, died at St.
Luke’s hospital on July 6th.
; Mr. Burns had been at West Baden for a
li^ttle rest and recreation. He was returning
to Chicago and in passing down the stairs
of the railway station he slipped and fell.
By the fall he fractured his skull in such a
way as to bring on a hemorrhage. He was
taken to St. Luke’s hospital, but died two
hours later. The funeral services were held
on last Saturday, the burial being at Mt.
Carmel.
Mr. Burns was, at the time of his death,
sixty-five years of age, having been born at
Wheaton, 111., in 1850. He was one of the
veterans of the coal trade, because almost all
of his business 'life was spent in the retail
coal business, although for a short time he
engaged in general teaming, at which time he
was also selling coal.
Something over thirty-five years ago the re¬
tail firm of Burns Brothers was organized.
The two brothers conducted it at the same
north side location until about eight or nine
years ago, when the other brother died. John C.
Burns continued in the business under the
old name until his untimely death on July 6th.
He is survived by four children, two boys
and two girls, and by his wife.
Death of F. A. Hill.
PoTTsviLLE, July 15. — (Special Correspond¬
ence.) — Death came suddenly to Frank A. Hill,
resident director of the Maderia Hill Coal Com¬
pany, at his home here tonight. Three days ago
Mr. Hill was stricken with acute indigestion and,
despite the most valiant medical effort, he passed
away in a state of coma. He leaves a wife and
three children — two daughters and a boy. He
was fifty-seven years of age.
Death came to him while he was engaged in
one of the greatest mining operations that he had
attempted in his career. The Maderia Hill Com¬
pany have been engaged in opening new mines
in the Broad Top mountain and Mr. Hill was
directly in charge of this work.
He was a practical mining man and was the
third in generation of a great mining family.
He was a son of Charles Hill, whose connection
with the anthracite regions is well known, and a
grandson of William Hill, who made a lasting
name in the Pottsville district.
Early in his life Mr. Hill was connected with
the Philadelphia & Reading Coal & Iron Com¬
pany, and later was connected with the first
geological survey ordered by the state of Penn¬
sylvania. When the second survey was made he
was given charge of the work in the middle
anthracite region.
In the late nineties he was attracted to the
semi-anthracite district of West Virginia and
for some years was the president of the Hall
Coal & Coke Company, and was located in the
Pocahontas district.
In 1908 he returned to Pennsylvania as a
director in the Maderia Hill Company, and as¬
sumed charge of the operations of that company
in the Pottsville district.
He was a man of the strictest integrity and,
combined with a modest and retiring disposition,
he was an idol to the men who were associated
with him. There was not a man from the hum¬
blest miner to those in executive capacities to
whom his word was not an accepted fact.
Arrangements for the funeral have not been
completed at this writing, though the burial will
be made in Pottsville.
Coal Production in Missouri.
The coal mined in Missouri in 1914 amounted
to 3,935,980 short tons, valued at the mines at
$6,802,325. Compared with 1913, when the coal
production of Missouri was 4,318,125 short tons,
valued at $7,468,308, the returns for 1!)14, accord¬
ing to the ITnited States Geological Survey, show
a decrease of 382,145 tons in quantity and of
$665,98:! in value. The decreased production in
1914 was due primarily to the uniformly mild
weather throughout the winter and to the less¬
ened demand from railroads. The demand for
steam coal by manufacturers was fairly well
maintained during the year, the transportation
facilities were ample and satisfactory, and there
was little interruption to mining on account of
labor troubles. There were occasional shut¬
downs, but no prolonged period of idleness, the
time lost being less than three per cent of the
time made.
For the 9,549 men employed, working an av¬
erage of 179 day.s, the average annual produc¬
tion per man was 412 tons, or 2.30 tons for each
workin.g day. About half of Missouri’s coal
production is “powder mined,” 1,834,017 tons,
or 46.6 per cent of the total, having been shot
off the solid in 1914, a slight improvement show¬
ing in these figures for 1914 as against 2,021,292
tons, or 47 per cent of the total, in 1913.
THE BLACK DIAMOND
45
No. 3]
The Cost of Selling Coal at Wholesale.*
By W. J. Dillon.f
The jobber or middleman is one who acts as
agent between the operator and the final dis¬
tributor. It will be admitted without argument
that the greater portion of the domestic coal,
both anthracite and bituminous, in the west, is
handled through middlemen.
That the cost of selling coal has materially
increased during the past ten years is admitted.
This increase is due to the keen competition
for trade, both steam and domestic, by the
wholesalers. Not infrequently will we receive
in our office a report from one of our repre¬
sentatives that eight, ten or a dozen coal sales¬
men have called on the dealers in a small town
on a single day.
In addition to salesmen the modern whole¬
saler has advertised to a more or less degree
through the newspapers, by circular letters, mov¬
ing picture slides, etc., direct to the consumers,
conducting a campaign to bring the merit of
their particular product to the one who consurnes
the coal. While the production has largely in¬
value of the product and the over-anxiety to
sell poorly rated accounts. Recently, one of
our salesmen presented me with an order from
a dealer whom we refused credit ten years ago,
as notoriously slow pay, but this dealer is still
in the business with a commercial rating of — 8,
and still slow pay.
To sum up we find actual results from repre¬
sentative companies as follows ;
A. An operator, steam and domestic, tonnage
large, entire cost of selling $.07 per ton.
B. An operator, steam and domestic, tonnage
large, entire cost of selling $.060 per ton.
C. An operator, steam and domestic, tonnage
large, entire cost of selling $.09 per ton.
D. Shipper, domestic only, entire cost of sell¬
ing $.1.5 per ton.
E. Shipper, domestic only entire cost of sell¬
ing $.16 per ton.
F. Shipper, domestic only, entire cost of sell¬
ing $.196 per ton.
G. Mine agent, domestic only, entire cost of
selling over $.20 per ton.
M. Shipper, domestic only, entire cost of sell¬
ing $.10J/^ per ton.
The figures noted above are absolutely cor¬
rect, and are given me in strict confidence by
some of the most representative of the opera¬
tors and wholesalers in this territory. You must
take into consideration that there is scarcely an
operator who does not handle at least a portion
of his coal through the wholesaler, and as the
selling expense on what we commonly call job¬
bing accounts is very light, it brings down the
average of the entire selling cost of the oper¬
ator.
The result of my investigation leads me to
the conclusion that an operator’s expense, in¬
cluding the entire selling cost, wilt probably av¬
erage around seven cents a ton, while the whole¬
saler doing a strictly domestic business will have
a selling cost of from fifteen cents a ton up¬
ward. The company that I represent have over
a dozen exclusive selling arrangements and it
is acknowledged that we can place a larger ton¬
nage at a less expense than any of the individ¬
ual operators are able to do, soliciting the trade
direct. What applies to our company will ap¬
ply to the representative shipper in the west.
creased during the past fifteen years, the sell¬
ing expense is much greater in proportion.
The cost of selling coal should be divided into
four parts :
First — Selling expenses.
Second — General expenses.
Third — Administrative expenses.
Fourth — Bad accounts.
Selling expenses, including salesmen’s salaries,
expenses, commissions, and advertising, varies
largely, depending whether the wholesalers cater
to steam, steam and domestic, or domestic trade.
Also, whether the tonnage is distributed in
large cities or country towns. One of the larg¬
est and most successful Illinois producers, sell¬
ing steam and domestic trade, tells me his aver¬
age cost through salesmen is $.046 a ton, but
through one of his salesmen selling only dom¬
estic trade, it was $.092 per ton. Another sell¬
ing domestic trade almost exclusively, shows a
salesman’s expense of $.066 per ton. Another
who handles all grades $.09 per ton.
General expenses, including salaries of clerks,
rent, light, telephone, telegraph, stationery,
stamps, etc., will probably be as low as three
cents a ton cost to an operator selling largely
to steam plants, and increasing to about eight
cents per ton on a strictly domestic tonnage.
Administrative expenses, including the salaries
of the executive offices is probably the most
difficult to estimate, but between one cent to
three cents per ton will cover.
Bad Accounts; — Among coal shippers we find
that seldom is any provision made for bad ac¬
counts, and is frequently overlooked as a sell¬
ing expense, the bad account being considered
more in the nature of the unexpected and dis¬
agreeable, not to be faced until absolutely com¬
pelled to and frequently carried on the ledger
as an asset until the extra profitable year, when
it is charged off. Losses of wholesale coal
accounts are unusually light in comparison with
other lines of business, considering the large
*An address before the coal convention in Chicago,
July 13.
tOf the' Mitchell & Dillon Coal Co., Chicago.
The Coal Trade’s Need of National Co-operation.*
By Charles F. Kerchner.f
No industry is more in need of co-operation
than the coal trade, and the coal trade at
this time is more in need of intelligent co-opera¬
tion than ever before in its history. Why?
Because one definition of co-operation in an
industry is given as the equitable distribution
of profits among those who earn them, which
means that co-operation should insure that there
be some profits for distribution. Also because
during the past twelve months, due to great in¬
dustrial depression and adverse business condi¬
tions, attributed primarily to the disastrous and
cruel European War, no branch of the coal in¬
dustry acknowledges having received a normal
or equitable profit. The war in Europe seems
to have brought on price wars among the trade
in many sections of the country.
I am considering the subject from the stand¬
point of the mine operators, the coal carriers,
the selling agents or jobbers, and the retailers of
coal — and perhaps the consumers as well.
When we think of the vast and varied inter¬
ests covered by this list and the tremendous
work of supplying the fuel needs of this coun¬
try, and, as now seems imminent, the require¬
ments of many foreign markets that may de¬
pend upon us and the mineral resources of our
l)eloved country, the subject seems appalling, and
much too important to be dealt with except very
briefly on the present occasion in the short time
allotted me.
When we consider that the coal areas of the
United States are all defined and limited ; that
there is no prospect of the discovery of addi¬
tional coal fields ; that economy in mining and
preparing the coal for market has about reached
its maximum, while on the other hand the ever
increasing demand due to new industrial uses
and broadening markets — foreign and domestic
— require that the coal wealth now in the ground
be conserved and protected against crude, waste¬
ful and antiquated merchandising methods. This
latter means that every branch of the trade
should be safeguarded against cut-throat com¬
petition and unfair business practices. That a
general and continuous effort be made “all along
the line” to bring about a more even demand
and distribution ; or that the supply keep in
closer step with the demand, and that periods
of great shortage in markets due to the inabil¬
ity of the mines to produce, or the railroads to
transport quickly to satisfy the immediate de¬
mand for coal, are not followed later by an
overstocked market and ruinous prices.
The anthracite companies have been consider¬
ing, during the past year, the question of reduc¬
ing the number of sizes now prepared and sold
by them. A decrease in the number of sizes, if
it would be managed without disturbing present
markets or lessening the demand by the intro¬
duction of competing substitutes, would be to
the advantage of the mining companies and of
some advantage to the retail distrilnitor. 1 cite
this simply as an instance where working to-
*A speech at the coal baiiqHet in Chicago, July 12.
tOf Hall Bros. & Co., Baltimore, Md.
gether might help solve an important problem.
The necessity of co-operation in the coal trade
must have been recognized early in its history.
This is evidenced by the many exchanges, asso¬
ciations, clubs and organizations of all kinds
that have been projected in the past, also by the
many local and state organizations that flourish
at the present time. A great number of these
are composed of retailers and are intended to
safeguard the interests principally of the retail
distributors of coal.
About this time of the year our trade papers
devote no inconsiderable space in their columns
to convention proceedings of these associations.
Occasionally we find statements from their offi¬
cers that they find it difficult to get their mem¬
bers to attend and those that are present to take
a lively interest in the matters under discussion,
or to give attention to papers presented at their
business sessions. Of our city exchanges some
are doing nicely, while in others the members
in utter violation of fundamental business prin¬
ciples are engaged in price-cutting campaigns
that must mean serious money loss and sacrifice
of capital and credit. These spasmodic out¬
breaks, often started by one kickinp^ member,
justify the thought that “one fool makes many”
is often as true in the coal trade as on a frolic,
and often apparently unsettle or annul the efforts
of several years of patient organization. Why
have these irregular and unsatisfactory condi-
fions prevailed? What is the answer?
It is a fact, as one writer observed, “that men
cannot co-operate successfully for any purpose
if the sole bond between them is one of self
interest.” Are we hampered too much by tra¬
dition and precedent? Isn’t it about time that
a manly effort be made to bring these various
interests of this great industry together in one
strong national organization that will be always
and everywhere truly representative. That will
be mutually beneficial and protective. That will
carry the educational work into every city and
town and village in our land. That might be
competent to voice the sentiments of the trade
as a body on any national or state legislative
question that directly or indirectly affect ad¬
versely or otherwise the interests of the trade.
That no question would be too large or too com-
l)le.x for the organization to haiKlle, while leav¬
ing strictly local matters to the state or local
association ?
Is there need in the trade now for such an
organization, and isn’t this the psychological imi-
ment to project it? Your presence here indi¬
cates that you believe in the value of organized
effort and suggests to my mind that you ma\’
agree with my conclusions. If so, how shall we
bring this National .-\ssociation into being? Or¬
ganize here with charter members, adopt charter
and by-laws, and begin a recruiting campaign,
etc., etc. Or shall we make use of Kokoal,
adopting its many valualfle features, principal
among them being its social and fraternal ideas.
If the latter be joined with some serious object
that would appeal to the material interests of
the various branches of the trade, we will have
an ideal organization that will command the uni¬
versal support and resjject of our trade mem¬
bers.
46
THE BLACK DIAMOND
[July 17
Practical Experience in Selling Coal for Cash.*
The cash or not the cash — that’s tlie ques¬
tion.
To do without it is out of tlie question and
to get any real, clean net cash out of the re¬
tail coal business is a question of great mag¬
nitude.
My argument is to get the money first and
take chances upon retaining at least a small
percentage of it, rather than to assume the
compound risk or ever getting it and getting
enough of it when we do get it to have any
left for our own pockets after defraying ex¬
penses.
Shakespeare also said:
"Out of this nettle, danger, we pluck this
flower, safety.” — (King Henry iv. Part i.)
One of the great present day slogans is
“Safety First” and in the retail coal business
it should be first, last and all the time. The
cash plan is our only guarantee of safety.
Beginning the season of 1914, May 1st, our
company having grown tired of and disgusted
with the credit feature of the domestic trade,
decided it was almost a choice between dis¬
continuing our retail department entirely or
establishing same upon a cash basis, so we
chose the latter and as proof of our satisfac¬
tory experience we are still operating upon
that basis and will continue to do so as long as
we continue to sell domestic coal at retail.
Before undertaking the change from the
credit to the cash basis we estimated that we
would lose at least twenty-five per cent and
possibly forty per cent of our business, but
notwithstanding the keen competition of our
neighboring dealers — selling at the same prices
and less — for cash or credit, our sales of do¬
mestic grades showed an increase of over
twenty-five per cent the first year, and so far
this season they show an increase of better
than thirty-three and a third per cent over the
same period last year and we have experienced
and enjoyed more real satisfaction in the
handling of our business than we ever thought
possible, in fact, for many reasons, we are
fully convinced it is the only correct basis
upon which to operate successfully under pres¬
ent day conditions.
In the first place coal is a common com¬
modity — a necessity and a not a luxury. Like
Kentucky whiskey, it is all good — some grades
and brands better than others — every dealer’s
pet brand is the best, or he says as much
whether he really thinks it or not, and the
majority of us keep on boosting our own
brands until we, ourselves, finally come to
believe in them. The ultimate consumer of
coal is the only real purchaser — the producers,
brokers and dealers being mere handlers of
it, and why does the consumer buy coal? —
purely as a necessity, and there’s no reasoiv
whatever for offering the buyer anything in
the way of inducements to buy more than act¬
ual requirements. There is nothing pleas¬
ant about the transaction in so far as the
purchaser is concerned, in fact, the fuel bill
is one all of us detest the same as we do the
water bill, telephone bill, light bill and tax
bill, and the sooner we pay these bills and
get the grouch out of our system the better
our liver behaves — and the cash plan does the
work.
The Credit System in merchandising was, I
suppose, inaugurated originally as a matter
of convenience and I admit there is an ele¬
ment of luxury and ease in it, the path of
least resistance, if you please, but to my mind
the system does not belong in the retail branch
of the coal trade today and if there ever was
a time when it was needed it has long since
outlived its usefulness. The credit problem
is one of the greatest, if not the greatest prob¬
lem in the retail trade.
For the past several years I have tried to
read rather carefully the leading coal trade
journals' of the United States and have been
especially interested in all articles pertaining
to the credit problem, and never yet have 1
seen any solution of that problem except the
application of the cash system to it and then
it becomes as simple as the simplest puzzle
after once explained.
You will note that at almost every coal con¬
vention much is heard of the credit problem,
and usually the secretary’s report contains a
*An address before the Coal Convention in Chicago,
July 12.
tCreneral manager of the Scanlan Coal Company, Louis¬
ville. Ky.
By G. T. Rider. t
A Masterful Assembly of Facts to Prove
That Selling for Cash Is the Only Safe
Method for the Retailer to Adopt.
lot of figures showing the great number of
slow accounts placed with the collection de¬
partment and how successful has been that
department in collecting them.
And yet these reports cover only the ac¬
counts turned into the association for collec¬
tion, but there is no earthly record obtainable
showing the total amount of losses sustained
through the* credit system, because the ma¬
jority of us are ashamed to admit even to
ourselves that we have been such “easy marks.”
St. Peter may have a complete record of these
losses, but only he, and few of us coal dealers
can hope to ever see that record because of
the sins we have committed in permitting a
lot of deadbeats to rob our families of that
to which they were justly entitled and from
which, they would, no doubt, have benefited
had it not been for our moral cowardice in
standing idly by and seeing them robbed with¬
out ever raising a hand in defense.
Mr. Arthur F. Rice, the able commissioner
of the Coal Merchants’ Association of New
York (whom I have had the pleasure of meet¬
ing), an eminent gentleman indeed, and has,
no doubt, devoted more time and effort to
the solving of the many knotty problems of the
retail trade than any other one man in the
United States, in his eleventh annual report
submitted to his association last December,
says:
“With the exception of the greatly improved
market condition, the matter of most vital im¬
portance to the trade this year is the new
credit system, which has been inaugurated and
put into successful operation. I began to urge
this matter upon the association four or five
years ago and have done so periodically ever
since. The amount of money that has been
lost meanwhile has unquestionably been very
large, and early this season the dealers were
aroused to the necessity of stopping this big
leak if possible.”
He devotes the better part of three pages
of his report to their splendid credit system —
and I assure you it is a good one — especially
with Mr. Rice in charge. And this report fur¬
ther states:
“Up to December 1st (in less than a year)
there have been sent in ],189 claims, 300 more
than last year, aggregating $107,741.37.”
That is for just one portion of one year,
remember, and for less than the two-year
period this report admits over 2,000 claims
sent in. And, gentlemen, think of it — that’s
one city only — a large one, it’s true, but the
losses you will note are in proportion to its
size.
The Coal Trade Journal of New York in
commenting upon this feature of the New
York association says:
“The new system of collecting and dissemi¬
nating credit information, which was estab¬
lished by the New York Coal Merchants’ As¬
sociation in August, has worked very satisfac¬
torily during the few months it has been in
operation. The system is simple and is in¬
tended to be fair to buyers as well as sellers;
in fact, the association has an arbitrating com¬
mittee whose duy it is to investigate any cases
where a buyer might wrongfully and hastily
be considered as unworthy of credit; the main
object of the system being to prevent crooked
and irresponsible buyers from defrauding the
dealers.
“When a dealer has exhausted every other
means of collecting money due him, he sends
in to the association a form of letter, which
is supplied to all the members, filling in the
facts in the case so that the officials have a
thorough knowledge of it. Immediately upon
receipt of this, a letter is sent to the delinquent
party informing him that the account has been
taken in hand for collection and asking for
an immediate settlement.
“On the same day a white card is sent to all
members, on which the name and amount is
written — ^nothing more. The receipt of this
card by the members of the association indi¬
cates that the credit of the party named is in
doubt. Very often settlement is made at once,
but if not a second letter is sent, and receiv¬
ing no response within a specified time, a blue
card with the same name and amount on it is
mailed, which informs the members that the
party is not entitled to any credit.
“Naturally, being thus informed, no dealer
will sell this party except for cash. When a
buyer whose credit has thus been questioned
pays his bills, a pink card is sent out from our
office. This means that the man’s record is
now clear, and he may be sold on credit; but
the possession of the previous cards inclines
the dealer to be cautious in his dealing with
him.
“The results of the system have exceeded the
most sanguine expectations and every mem¬
ber is enthusiastic over it. The crooks are
being brought into line and the chances of los¬
ing money are reduced to the lowest terms.
Moreover, the advantages of the system are
so manifest, and it is so logically clear to the
dealers that those who are not in it would be
pretty sure to have this undesirable trade run¬
ning to them, that they have all come in.
“The association’s collection department is
making almost a record this year in getting
in many bills. The amount of money that has
been lost by the trade through loose credits
would be appalling if it could be known and
a tremendous leak has been checked.”
At the annual meeting of the Philadelphia
Coal Exchange held last December its able
assistant secretary, Mr. H. Landgraf, was com¬
mended for the able manner in which he had
conducted the various departments of the or¬
ganization and especially the Credit and Col¬
lection Bureau.
I will read you from that report:
“I will therefore confine my report to the
work that has been assigned to me, the collec¬
tion of accounts that have gone beyond your
control and the information imparted by the
credit department.
“The offerings of accounts for collection
during the early part of this year were not
very many, but what was lacking in the be¬
ginning has been fully made up during the
latter end of 1914. There have never been so
many claims presented at any particular time
as now, the increase is at the least calculation
100 per cent and over, against the same period
during the year 1913 and in fact at any time
since 1908. Not a day passes on which there
is not a number of new accounts received, a
thing that has never happened before. I have
long ago recognized the fact and necessity of
delving ever deeper into new schemes to at¬
tain results. It keeps the office force of the
exchange extremely busy at all times. Old
offenders are frequently encountered and with
such people our old letters would have as
little effect as water would have on the back of
a duck, if we did not have something new to
use on them to bring the result.
“Coming now to the state of affairs, as
existing along the line of inquiry for credit,
I have all along maintained that every person
with whom the members have time accounts,
should be listed with the Exchange. It may
be objected to, that the files of the Exchange
need not be burdened with accounts that are
perfectly good, but what about the good ac¬
counts that become poor? The trouble is that
our members do not embody in their office
methods and, routine the systematic making
of reports. Our experience to date is that
slow pay and very slow pay parties are rarely
reported and undesirables only after every
effort to collect has failed, and then it is usually
too late to stop a beat from obtaining addi¬
tional credit, hence, having piled onto him¬
self a still greater burden than he was able to
carry before the creation of additional credit,
is in many instances unable to meet the old
debt, which thus becomes a loss instead of
merely a suspended account. Further, what is
the matter with the account that is too slow
to be profitable? Such accounts are, per¬
chance, only too often forgot or report entirely
neglected. After such a party has paid, the
member makes up his mind never to sell him
again, and there the matter rests, report to the
Exchange is not made at all. I have heard
it expressed hundreds of times, that when the
Exchange has no report on file, that person
must be O. K., if not, he would have been re¬
ported.
“The credit department has been exceedingly
busy with inquiries during the last four
No. 3]
THE BLACK DIAMOND
47
months, in fact so busy that ive have had to
slight some matters in many instances, that ivould
otherwise have received more careful painstak¬
ing attention. Yet this cannot be wondered
at. As I have stated before, the collections
have increased 100 per cent and more and the
inquiries have increased from 200 to 300 per
cent over those of last year during the same
period of the year. Additional to that comes
the fact that our members do not make sys¬
tematic efiforts to report, and some no re¬
ports at all, so that we have to advise to in¬
quire of the credit-seeker the name of the pre¬
vious coalman. This necessitates two extra
’phone calls, to the previous dealer and again
to the inquirer. In this manner our work is
tripled and causes the loss of an immense
amount of time needed elsewhere. Again and
again we have found that the information re¬
ceived was what should have been reported
to the Exchange long ago, hence, by the fact
that some members make no reports a great
deal unnecessary work is piled upon the small
clerical force of the Exchange office. There
is one concern making innumerable inquiries
each day, but makes no systematic reports
whatsoever to keep the files of the Exchange
alive. In many instances where we had to
ask them for information the parties were
either undesirable or in their debt for a con¬
siderable length of time.”
And we now arrive home — right here in your
little village, Chicago, and I beg to quote from
the report of Mr. Wm. D. Elmstrom, presi¬
dent of the local Coal Merchants’ Association,
which report he delivered the association at
its annual meeting held here in your city last
April.
(See page 336 Black Diamond, April 17.)
Credit Information.
“Our credit information and files now con¬
tain something like 19,000 names. It has
taken several years, with great expense, to
compile this information, and it is one of the
most important features connected with our
association. You should not fail to take ad¬
vantage of this information, and by keeping
in touch with this department you will pos¬
sibly save many times the expense of your
membership.
“During the past year we have adopted and
printed a uniform application blank for credit
which is particularly adapted to the coal trade.
These blanks are furnished to the members
free and should be freely used, and when prop¬
erly handled will be of much benefit to mem¬
bers when credit is requested.
“With a view to increasing the efficiency of
our credit department your board of directors
authorized our commissioner to take out a
membership in the Chicago Association of
Credit Men. This association is composed
of representatives of the principal mercantile
houses in Chicago, and a membership therein
will be of much benefit to the members of our
organization, for additional credit information
can be secured from that source through our
office.
“Our association has made arrangements
with the Chicago Real Estate Index Company
whereby the members can verify the owner¬
ship, etc., of property through our office, which
also will be useful for credit information.”
At this same meeting and under the heading
“Collection Department” the commissioner, Mr.
N. H. Kendall, stated in part:
See pages (337-338) Black Diamond, April
17, 1915.)
“Collection Department.
“From May 1, 1908, to March 31, 1914, there
was collected through the collection depart¬
ment $131,059.78, and during this year the de¬
partment was successful in collecting $13,098.02,
bringing the total amount of our collections
up to $144,157.80.
“The great obstacle is the time required
to make the collections. Occasionally, an ac¬
count is sent in which we are able to collect
in full in a few days, while we have a large
number of accounts which have been worked
for over one and two years, and some few
that are still alive that are as old as five
years.
“There were sent in for collection 698 ac¬
counts, amounting to $35,493.14. Of this num¬
ber the association collected 128 accounts, or
a fraction over eighteen per cent, aggregating
$5,146.65, a little less than fifteen per cent of
the total amount of all the accounts tendered.
“Being unable to realize on a certain por¬
tion of the 698 accounts previously men¬
tioned, 362 of them were placed in the hands
of attorneys or ouside agencies. There were,
however, quite a few of these 362 which re¬
quired the services of an attorney when placed
in our hands, and the association immediately
transmitted them for legal attention.
“An account under six months old is very
seldom sent to the association unless the
debtor has absolutely refused to pay or there
is some other reason why action is taken under
six months. Comparatively few accounts un¬
der qne year old are turned in, and the age of
the account runs from that point up to three
and four years, and we have had them five
and six years old. One in particular, which
comes to my mind, was for less than $10.00,
and was twelve years old.
“Regardless of our efforts to have accounts
placed for collection earlier there are still
large amounts now standing on members’
books, and you only need to refer to the
figures above, reading 306 accounts aggregat¬
ing $19,403.14 in the hands of attorneys, which
have not, as yet, been realized upon, to see
the condition of the accounts when sent to
the association.
“Many of the accounts included in this list
came to us against parties, some of them
named Smith, Jones and Johnson, with no
initials on the statement, and upon inquiry,
it was found that the members had been so lax
as to extend credit in this loose manner.”
and under the heading “Credit Department,” he
says further:
(See page 338 Black Diamond, April 17,
1915.)
“Credit Department.
“The credit feature of our collection de¬
partment has been vastly improved in the past
year, and will be still further improved in
future. We can only give out such informa¬
tion as can be gathered. Our source of sup¬
ply is the ledgers of our members. If these
ledgers are not open to this office in the way
of the reports, which we beg for monthly, we
will be unable to supply you with advance in¬
formation.
“During the past year our new book was
issued containing about 16,000 names, and from
July 1st to date members have been supplied
with 2,985 additional items of information.”
On the editorial page of the Retail Coalman,
January, 1915, we find the following: (See
page 45.)
“How Much Bad Debts?
“We are publishing an unusually interest¬
ing letter on another page of this issue from
a retail coal merchant giving his experience
for the past twelve years in amounts lost
through bad accounts and asking for infor¬
mation from other retailers along the same
line.
“This dealer has found that on an annual
business of $45,000, they have had to charge
off about $1,000 a year in bad accounts or a
per cent of two and thirty-one hundredths
on the total business done. Figured on a
tonnage basis this makes an average of four¬
teen cents a ton on all the coal sold to offset
the amount lost from bad debts.
“He raises the point that if these figures are
not higher than most dealers suffer, then it
would seem advisable to enforce a cash basis
instead of allowing credit in the coal business.
“In any event a decidedly interesting ques¬
tion is raised and the editor would particularly
appreciate receiving letters from our readers
on this subject, giving their experiences and
the percentage that the amount they charge
off each year on bad accounts bears to their
total volume of business. Any information
given to the editor along this line will be con¬
sidered strictly confidential and no names will
be given in connection with it. In other
words, all we want is the figures in order to
find out just how much is the average that
retail coal merchants have to charge off on
account of bad debts in proportion to their
total sales each year.”
With reference to this, I claim it is a mis¬
take to calculate the percentage of loss on
the volume of business handled because in the
handling of coal there is not a legitimate mar¬
gin of profit basing the calculation on the
gross sales; therefore, the correct way to
reckon the loss from bad accounts is to com¬
pare same with the net profits of the business
and determine what proportion such losses
bear to the net profits. For example, say a
retail dealer handles a gross business of quar¬
ter of a million dollars per year — does he
make what may be called a legitimate mer¬
chandising margin of from ten to twenty per
cent on that volume? Not by any means —
in fact that concern considers itself quite
fortunate to clear even two per cent, or $5,000
per year and if its losses from credit risks
amount to as much as $1,000 per year it is
only two-fifths of one per cent on the total
volume, which sounds very small, but it rep¬
resents sixteen and two-thirds per cent of
what should be the net profits — or in other
words, the dealers figures up the year’s work
and finds a net profit of $6,000 or two and
two-fifths per cent on the total — but after
charging off the bad debts he has only $5,000
net, consequently he has lost sixteen and two-
thirds of his net returns by extending credit.
A dealer in Portland, Maine, in a communi¬
cation to The Coal Trade Journal is reported
in one of that paper’s recent issues as saying:
“In regard to the matter of selling coal
strictly for cash, will say, while this matter has
been gone over quite thoroughly at different
times by the different dealers, it has never
seemed wise to adopt it. The opinion of the
vvriter has always been that it would be en¬
tirely impracticable, based largely on the
premises that it is too arbitrary. Our liberal
discount of 4 per cent brings very large re¬
turns from those who are in position to pay
promptly, the whole matter being one in its
'last analysis of good judgment in extending
credits.”
This objection is very nicely answered by
another article appearing in the same issue
of that same paper, although the writer of it
was not, of course, aware of the fact that he
was answering it. He says:
“Some Thoughts on the Credit Problem.
“A slow-as molasses customer who had al¬
ways been one year behind in payment for his
bin coal, on settling with the old firm and be¬
ing introduced to the new purchaser of the
coal yard, said with some warmth: ‘If I
had known you had sold out, I would have
given the money to some other concern.’ This
story voices very aptly the feeling of the aver¬
age consumer of fuel, especially those who
have been carried along from season to sea¬
son by easy-going dealers.
“The argument so often used that ‘credit
holds trade’ vanishes into thin air when a cut
rate is made by some rival establishment.
This question of getting and using the other
fellow’s goods and then making him beg for
the pay is all wrong. People ought to have
the moral of this taught in the schools, for
even the laws seem all made in favor of de¬
linquent payers.”
Now gentlemen, I must apologize for con¬
suming so much of your time and so much
of the time of this convention, but in order
to back up my argument in favor of the Cash
.System I wanted to call your attention to the
fact that the “Credit Problm” is a paramount
question before the present day retailer — yes,
and the wholesaler as well.
I have shown from the reports read that the
major portion of the time of the active offi¬
cers of the retail associations throughout the
country is taken up by these Credit and Col¬
lection Bureaus. There is no question about
its being great work and I heartily commend
it, for it justly deserves commendation, but
let’s come right down to the meat in the
cocoanut, look ourselves square in the face
and ask ourselves if the game is worth the
candle?
These reports tell about all the money they
collected from dead beats, but none of them
state what it cost the association to collect
them nor what it cost the dealers to try to
collect them before they were turned into the
association.
I can tell you, and I say it without the least
fear of successful contradiction, that from the
time those accounts were opened on the ledg¬
ers of the dealers, until collected by the as¬
sociation, every dollar collected has cost more
than one hundred cents, not to say anything
about the loss of religion involved.
Would it not be a thousand times lietter for
all of us to do away with this Credit and Col¬
lection work of the association, thereby stop¬
ping the enormous expense of it and have our
secretaries or commissioners devote that time
and money tojthe live issues of the day in an
effort to place our enterprise upon a business
basis — a higher and better — a more dignified
plane, where it justly belongs?
In order to do this it is, of course, neces¬
sary to establish the Cash System universally
in the retail trade — and why not? The prin¬
cipal argument against it is as heretofore
stated by one writer — that it is “too arbitrary,”
that, to my mind, is just where the mistake
is being made. There is nothing arbitrary
48
THE BLACK DIAMOND
[July 1/
about tlie Cash system — that all belongs to the
Credit System, because it is a very tine point
indeed to draw the line between the con¬
sumer who is entitled to credit and the one
one who is not, and the mortal man who
can perform that task successfully has not yet
been born — many of us have tried it and are
trying it today, unsuccessfully, and what is
the result? The loss of friendship, the loss
of patronage and the loss of money. 1 say
the loss of friendship because you must make
enemies when y(ni refuse credit to one and
extend it to another, when, no doubt, the one
refused considers himself or herself as much
or more entitled to credit than the person
granted it, and frequently such is the case, as
T have heretofore proven. When you inake
the announcement that you extend credit to
no one — rich or poor, prince or peasant — it is
more clearly understood and notwithstanding
the general opinion of the average dealer to
the contrary, fewer enemies are made than in
the case of undertaking the separation of the
sheep from the goats, as it were.
There is so much to be said in favor of the
Cash System that the entire two days allotted
to this convention could be consumed and the
question not done justice, but I have already
imposed upon you to such an extent that I
will close by quoting from that learned and
eloquent brother, Kokoal, and a brother in the
trade of long standing and wide experience,
Mr. J. S. Van Epps, of Cleveland, Ohio:
“It is a marvel to me the ease and facility
with which the retail dealer parts with that
which represents good and solid dollars and
takes in exchange a promise to pay and some¬
times scarcely that, from customers hope¬
lessly insolvent. Would he hand out those
same dollars that the coal represents, were
he a money-lender, with only the one object
in view — that apparently of making a showing
of business transacted? I think not. Think
seriously on this. It is the rock that has
foundered ninety per cent of the stranded
coal dealers of the past; it is not covered up
except at high tide; it lies right in the main
channel of business; then you may pass over,
but you will have to use your surplus to make
good the necessary repairs attendant upon
your hazard. Steer clear of it at all times,
saving your little surplus intact, and yourself
and others inevitably from financial disaster
and all the distressing consequences follow¬
ing.”
The Coal Convention.
(Concluded from page 43.)
man with the long countenance and the rumor
tongue until our calling, already practically
driven from ‘pillar to post,’ has been on the verge
of business suicide.
“The transportation problem is one of national
importance, and if we are to continue to advance
it must be solved rightly and promptly. This
country could not have grown from its four
millions to its one hundred millions without trans¬
portation facilities. Their proper relations to the
nation, state and individual require the thought¬
ful consideration of all.
“Another of our problems is that of the proper
treatment of capital organizations or corpora¬
tions. Large and strong corporations, wisely
managed, are absolutely necessary, and bad ones
are gradually being eliminated. A few stron.g
and ambitious men used the great powers of
corporations unwisely, and as a result the country
was aroused against them and all sorts of laws
were passed in an effort to correct evils, and, as
is often the case, some of the remedies were
worse than the disease.
“There are .signs now that we are approaching
the time when the country will obtain the full
benefit of the corporate form of doing business
without the evils.
“.•\nother present-day problem is that of legis¬
lation. Because of some mistakes by railroad
owners and managers, and by those engaged in
other forms of corporate business, suspicion and
disfavor developed, and a class of critics has
grown up in this country who have made a livin.g
by agitation and by advocating unnecessary legis¬
lation.
“Probably a large number of the alleged evils
would have gradually corrected themselves and
the country would be far better off with less
instead of more laws.
“Another great problem before the country is
that of the labor organizations. They are a part
of our complex social machinery, but they have
not yet found their place. The great leaders of
capital obtained tremendous power, which has
been curtailed and regulated by law. The time
will come when the great, unresisted powers now
exercised by the leaders of the .great labor organ¬
izations will be regulated in the same way.
“Now with all this prosperity comes the ap¬
pointed time to further Kokoal, to put it on its
feet, to enable it to carry out the spirit which
Ijrought it into being.
“Personally, I believe it would be a wise fea¬
ture to change the name of Kokoal to the Na-
lional Coal Association, with the subsidiary name
of the Order Kokoal, and to continue the design
on the letterhead as a sort of a trade-mark, but
that is for your cotisideration and decision.
Report of Resolutions Committee.
li. V. Sidell of the committee on resolutions
submitted the followin.g report.
“Yoiir committee on resolutions, having many
matters under consideration, desires to present
these in sections, which are herewith suggested :
“Purpose of Organization: We believe the
greatest need of the coal industry is to study to
improve the craftsmanship in production and
distribution. We believe in and recommend the
adoption of the guild idea, with the attendant
establishment of a clearing house of ideas. In
accordance,
“Re It Resolved, That the name of this organ¬
ization be changed to the National Coal Guild.
“Officers: We believe that names of officers
carry a suggestion of the purpose of the organ¬
ization. Also, we believe in as few officers as
are consistent with the effective work of the
organization. In accordance,
“Be It Resolved, That the names of the officers
be those of a business organization, namely, presi¬
dent, vice-president, secretary, treasurer, etc. Be
it further
“Resolved, That there be elected three vice-
presidents, representing operating, accounting and
finance, distribution and general welfare, and
any others needed to represent all branches of the
service.
Uniform Accounting.
“Whereas, In accordance with the spirit and
purpose of this convention, that we proceed to
put into effect plans which shall redound to the
benefit of all members alike, we believe that
among the much needed reforms is the matter
of a uniform system of accounting _ for each
branch of the service. Therefore be it
“Resolved, That the executive of this organiza¬
tion be and is hereby authorized to appoint a
committee of three to investigate and ^report to
him, and upon his acceptance of the ‘forms’ is
authorized to have a sufficient number of sets
printed and distributed to the entire membership.
Exact Weights.
“Whereas, the subject of weights has been one
of the most serious causes of contention between
shipper, retailer and consumer, primarily the rea¬
son for the contention is the improper construc¬
tion, as well as maintenance and inspection of
scales; therefore be it
“Resolved, That the executive is hereby au¬
thorized to arrange for the drafting of a bill to
be presented to all legislatures in the respective
states at one and the same time which will pro¬
vide specifically for the construction of all
scales, both track and wagon, with concrete or
brick and steel, and furthermore provide for
systematic inspection by the respective state gov¬
ernment representatives.”
Acknowledgments.
“Be It Resolved, That this organization enter¬
tains and hereby expresses its lively apprecia¬
tion of the efforts of—
“The Chicago coal men who have provided
the entertainment at this convention. '
“The speakers who have worked so diligently
to give us so much information.
“The trade press who have done so much to
advance the best interests of the trade.
“The officers of the Order Kokoal who have
done so much in the last year to advance the
order to the point where its new purpose is
adopted.”
Changes in the By-Laws.
Charles Kerchner. chairman of the committee
on constitution and by-laws, made the following
preliminary report :
"Your committee on revision of the constitu¬
tion and by-laws would respectfully report as
follows : r , ^ 1
“Article i: The official name of the Order
Kokoal shall be the National Coal Associatimi.
“Article 2: The object of the National Coal
Association shall be to promote the social, fra¬
ternal and educational development and general
welfare of the coal industry, and in furtherance
of this aim the National Coal Association shall
stand for alisolute integrity in business relations,
both in the coal trade and with the consuming
public.
“Section 2: Its motto shall be ‘Come On
And Lift.’
“Article 3: Section 8. The membership fee
shall be $5, which, to.gether with the current
year’s dues, must accompany the application. The
annual dues shall be $.5 per year.
“Section It: Firms or corporations employing
a member of the National Coal Association in
good standing at the time of its application shall
be eligible to membership.
“Section 12 : The annual dues for associate
membership shall be $10 without any membership
fee.
“Article 4: Section 1 : The governing officers
of the National Coal Association shall be: Presi¬
dent, first and second vice-presidents, secretary-
treasurer, and seven directors, who shall com¬
prise the executive committee.
“Section 2 : The executive committee shall
appoint an advisory board not to exceed fifteen,
who shall promote the welfare of the association
in their respective territories.”
Coal Convention Notes.
After listening to retiring Modoc Scull through
two sessions, the members of the order came to
the conclusion that orally he is a machine gun
who is always ready for action. It made no dif¬
ference whether it was an occasion of receiving
a gift from the order, or whether it was a matter
of discussing a new phase of a question that was
brought up, he had a pat way of expressing
everything. It came so easily it seemed that he
mi.ght have studied the matter out for weeks.
E. V. Sidell of Poughkeepsie, N. Y., was very
much in evidence. He was chairman of the
resolutions committee, and he and G. T. Rider of
Louisville formed an impromptu association
among themselves to boost the “cash basis.”
Unless W. H. D. Gibson “falls down” one of
these days he is going to get a permanent job
as a member of the finance committee of all
coal trade gatherings. He succeeded in per¬
suading something like forty members of the
Chicago trade to donate ten dollars each to de¬
fray the expenses of entertaining the visitors.
He actually got the cash. This was enou,gh
money to pay the convention expenses, without
relying upon anything from the sale of banquet
tickets. As a result, Harley Huskey, in charge
of the banquet committee, was able to spend all
of the two dollars which he got for tickets on
the menu for the banquet. Incidentally, the
dinner was a good one.
T. P. Bryan of Kansas City was one of the
few western men present, but he made up for
the whole west by the impression which he left
on the convention. Both in his talk and in a
subsequent discussion he gave the idea that he
is a coal man who actually knows his business.
John S. Van Epps was missed — sorely missed.
Business in other directions kept him away.
The equipment men were not very much in
evidence. Still, this convention in Chicago would
not have been complete without Otto H. Thjomoe
of the Gifford-Wood Company. He was on hand
early and late.
The crowd had a good deal of fun, under the
leadership of Modoc Scull, with Charles Kerch¬
ner, who was said to be the only representative
of the kaiser in the convention. Of course, this
was not literally true, because Germany had a
good many devotees who sat in the background
and said very little.
B. L. Shepard made his initial appearance as
a speechmaker at this convention and went home
with some laurels. He can play golf and — talk
some.
Homer D. Jones appeared on the pro.gram for
the first time “in the major league,” as he ex¬
pressed it.
Germany Takes Mines.
London, July 16. — German newspapers reaching
here publish details of the government’s scheme
to control the coal industry in Germany. A
proclamation empowers the state authorities to
bring the owners of coal fields together by com¬
pulsion in associations, which will control the
whole production and sale of coal.
The government feared a condition of chaos
in the coal market as a result of this failure and
stepped in to prevent it. The coal interests
apparently are surprised by the action of the
government.
No. 3]
THE BLACK DIAMOND
49
Odd Leaks That Decrease Profits.*
By B. L. Shepard.
I do not quite understand why the Committee
gave me the subject “Odd Leaks that Decrease
Profits’’, for 1 am certain there is not an oper¬
ator who really knows of such a department in
connection with the operation of a mine.
You, as members of the Order Kokoal, repre¬
sent one of the leading industries of the coun¬
try — one upon which all other industries depend
directly or indirectly upon it for its power. You
represent a large investment of capital and an
industry that has during the past few years
shown a very small return upon the investment
and has reached a state where it must be closely
watched in all details in order to give in return
an average percent of profit.
I am informed by the Mining Department of
the University of Illinois that for each ton of
coal mined in this State there is represented
a capital investment of $1.20. This will give
you an idea how close all departments must be
looked after, thus avoiding any possible “leaks”.
I am more convinced each year that the op¬
erator must arrange the several departments so
that he knows the true cost whatever it may be.
One cannot leave out certain fixed charges and
arrive at the actual cost of operation. If one
does, then he places his product upon the market
at a price that will be detrimental to his earn¬
B. L. Shepard.
ings and will represent a loss that not only
works a hardship upon himself, but upon others.
During the past two years a uniform system
of accounting has been more freely adopted by
the operators, and this has been extended to the
adoption of such uniform accounting by dis¬
tricts which I am certain will place the coal in¬
dustry upon a higher standard and will do
more to bring the operators closer together than
any other method that has been adopted for
sometime.
Today the cost of operations must be watched
in such a mapner that in saving a few cents
here and there, the operator must look to these
small savings for the return upon his investment.
It is upon these small things I am trying to
give you a general idea of the “Odd Leaks that
Decrease Profits”.
One would not consider that the scales were
not in proper repair as they are tested each day
by weighing an empty car or placing four fifty
pound weights on a hundred ton scale to see
that they weigh correctly. However, I have
seen this tested and found to be a failure. When
making up a tonnage list for a period there is
found that for several months the shortage is
too great and complaint is made to the weigh-
man. He is sure all is well. The time comes
when it runs into the hundreds of tons, then an
examination is made and they find that the tim¬
bers are decaying in a manner not noticeable
until they are cut into and then the real
trouble appears, which is a surprise to all. How¬
ever, several hundred dollars have been lost.
Then we have the top scale or weigh hopper
*An address before the coal convention, Chicago,
July 13.
to contend with. All are certain they are cer-
rect, but it has been known that a small pin
has been lost or removed which has increased
the weighing capacity twenty pounds to the
hoist. VVith one thousand hoists per day, it is
only a small matter of ten tons. At your mine
rate it would be $5.71) to $().t0 per day — a small
profit in itself.
In the manner of feeding and caring for the
mules on the bottom, some operators only make
it a rule to send down the feed on days when
the mine is idle, so they have plenty on hand
in case, I suppose, of a shortage in the car
supply. This in my estimation is an extrav¬
agance. Send down the supply daily and it will
not be wasted or trampled upon. I have had
my experience. By adopting the daily delivery,
this account was cut over $200.00 per month.
Another small profit. A suggestion — Why not
try grinding the corn and oats, thus saving a
large percent of waste? This has been tried
and found a success.
All mines have their mine managers and an
assistant in a great many places, however, I do
not think that the mine manager is capable of
going over all his workings each day, and I
am certain that by allowing him an assistant
for forty to fifty working places and holding this
assistant accountable for his territory, a great
saving will be made ; a closer watch can be kept
upon the use of props and the proper placing
of them and by so doing the result will be to
reduce the liability expense and increase the ton¬
nage, at the same time it will also give a better
preparation which is essential to the sale of the
coal. The props should be well inspected at the
time they are purchased to see that the ends are
of proper size ; cull all that are not straight
(I mean a medium well cut timber). This
saves the “leak” which is sure to come. All
that are discarded in the room on account of
not being of proper size or shape represent an
outlay of six and one-half cents to eight and
one-half cents each. I have seen fifty out of one
hundred and twenty-five props in a pile on the
bottom that were not fit for use. This would
Detroit Public Bids.
Bids opened by the Detroit board of health on
coal supply for the year were ;
Bituminous. Anthracite.
United Fuel it Supply Co. —
Richmond nut, pea and slack . $2.55 . . •
Scranton egg or stove . $fi.75
Scranton chestnut . 7.00
Pocahontas mine run . *3.50
Pocahontas egg. forked . 1.25
William E. Besancon —
West Virginia nut, pea and slack.... 2.78 ....
Ohio nut, pea and slack . 2.63 ....
Pennsylvania nut, pea and slack . 2.78 ....
Lehigh egg or stove . *6.55
Pocahontas mine run . 3.30
Pocahontas shoveled lump and egg . 4.35
K. L. Aylward —
Island Creek nut, pea and slack . 2.65 ....
Scranton egg or stove . 7.00
Scranton chestnut . 7.25
Houston mine run . 3.75
Houston egg, forked . 4.30
P. Koenig Coal Company —
Meadowbrook nut, pea and slack.... 2.(54 ....
Lehigh Valley egg or stove . 7.00
Pocahontas mine run . 3.75
Pocahontas egg . 5.50
Parker Bros. Company, Ltd. —
White Star nut and slack . 2.68 ....
Scranton egg or stove . 7.00
Scranton stove or cliestnut . 7.20
Weyanoke mine run . 3.75
Weyanokc egg, forked . 5.40
Daniel Sullivan —
Lehigh Valley egg . 6. 88
Lehigh Valley stove or chestnut . 7.20
Houston mine run . *3.25
Houston egg, forked . 4.90
*. Accepted bids.
Estimated quantity: 2,000 tons mine run, 500 tons
anthracite.
Proposals for Coal.
Sealed proposals are invited for furnishing
coal for consumption at the Illinois State
Penitentiary at Joliet, Ill., from the 2d day
of August, 1915, until the 2d day of August,
J916.
Bids are invited upon mine run. Also upon
represent a loss which in my estimation is un¬
necessary.
At the close of each day's operation have your
assistant managers counsel with your general
niine manager, and report findings. You will
find this will save more than the extra cost
of the assistants or room bosses as they are
called in some locations.
All mines not ccpiipped with the latest im¬
proved pit cars will waste grease and oil. It
is the custom at some mines to send down
several barrels of grease at a time, this is
poor policy as it is always subject to waste and
in most cases will be opened and used in a
careless manner. It is very handy for others
to make use of it in a manner not intended,
as all mines use an instrument for boring the
hole to place the charge of powder and this
instrument becomes very warm and works hard.
A little grease helps out. A small amount used
each day in this manner grows to a large item
of ex[)ense.
About all mines there are more or less non¬
productive hours of labor. This will always
be so, but by placing your mine under the de¬
partment system you can more closely observe,
and soon find, the “leakage”. Take for instance
a piece of bottom labor; it has been shown that
there were more men employed on a certain
work than necessary and as soon as this was
discovered a cut was made. The men them¬
selves admitted that they had to maneuver to
get by without being discovered and comment
ran among themselves that they lasted longer
than they expected. I only use this to illus¬
trate that it is essential to always be on the
lookout to stop “leaks” of this nature.
I have taken up more time than I should
dealing with operations. There are other
“leaks”. I am sure the retailer has his troubles.
One that comes to my mind is the manner in
which some handle their freight account. My
advice is to purchase as much of the coal as
possible at a mine price, this will save the an¬
noyance of deducting the amount paid out for
freights. I have seen instances where such ac¬
counts have been paid in full. If a close watch
is not kept on such items the retailer must
suffer the “leak” until by accident, if ever, it
is detected and corrected.
IJ^-inch screenings containing not to exceed
35 per cent by weight, that will pass through
a screen having a circular mesh of >>ich in
diameter.
The annual consumption of this plant is
estimated at 20,000 tons, being at the rate of
approximately forty tons per day.
Proposals will be received at the peniten¬
tiary at Joliet, Ill., up to ten a. m. on the 31st
day of July, A. D. 1915. They are to be
mailed to Edmund M. Allen, warden. Each
proposal must be accompanied by currency,
certified check or certificate of deposit to the
amount of $200, payable to the order of Ed¬
mund M. Allen, warden, which deposit will
be returned to the bidder if his proposal is
rejected, and if accepted, upon the bidder fur¬
nishing the required bond within five days of
notification that said bond is ready for exe¬
cution. If the bidder should fail to furnish
the said bond within said period, such de¬
posit will be forfeited to the Illinois .State
Penitentiary.
All proi)osals are to be made out in the form
of contract, copies of which will be furnished
upon reeiucst by Edmund M. Allen, warden,
and no other proposal will be considered or
accepted: such contract to be properly exe¬
cuted, it being understood that although e.xe-
cu.ted such contract will not lie binding ui)on
the bidder unless accepted by the consumer
on or before the 2d day of .August, 1915.
On .Augu.st 1st the Kentucky State Board of
Health, in connection with the Rockefeller Foun¬
dation, will take charge of sanitary imi)rove-
ments with a view to making the town of Cox-
ton, Harlan county, Kentucky, a model mining
town in all respects that affect the health and
comforts of miners and their families. After
completing their sanitary and hygienic arrange¬
ments at Co-xton. it is planned by Dr. J. S. Lock,
representing the Rockefeller Foundation, to make
a campaign through other mining towns, both in
eastern and western Kentucky, with a view to the
general betterment of living conditions.
Bids for and Contracts Let on Coal.
50
THE BLACK DIAMOND
[July 17
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Saturday, July 17, 1915.
INDEX.
Special Articles.
Page
Coal Convention and Meeting of Order Kokoal . 41
J. V. Thompson Holdings . 44
Death of John C. Burns . 44
Death of F. A. Hill . 44
Coal Production in Missouri . 44
Will Knowledge of Costs Reduce Price Cutting? . 44
The Cost of Selling Coal at Wholesale . 45
The Coal Trade’s Need of National Co-operation.... 45
Practical Experience in Selling Coal for Cash . 40
Germany Takes Mines . 48
Odd Leaks That Decrease Profits . 49
Bids for Contracts Let on Coal . 49
Editorial . 50
Dr. Joseph A. Holmes Dies at Denver . 51
New Ruling Complicates Ohio’s Situation . ■. . 61
News Local to Chicago . 52
Have Prices Kept Up With Rising Costs? . 52
Facts Which Determine Our Export Prospects . 53
New Coal Companies . 15
Market Reports.
General Review and Chicago . 54
Pittsburgh and Detroit . 65
Cincinnati and Denver . 66
Omaha, Toledo, Louisville and Indianapolis . 57
New York . 68
Philadelphia and New England . 59
Buffalo, Baltimore and Birmingham . 00
Hocking Valley . 16
Glenn D. Bennett, correspondent of
The Black Diamond at Omaha, died on
Tuesday, following an operation for ap¬
pendicitis. This was an editorial bereave¬
ment.* He knew coal and coal men and
he could write what he knew. He was
conscientious in his work and faithful.
Dr. Joseph A. Holmes.
Dr. Joseph A. Holmes, the director of
the United States Bureau of Mines, died
on Tuesday of this week. The coal trade
will think, and properly so, that it has
lost its best friend. The metal mining in¬
dustry will think, and properly so, that it
has lost its best advocate. The people of
America will think, and properly so, that
they have lost their best advocate of prac¬
tical conservation.
With all partisans claiming this man as
their own, the fact stands out that he
boldly represented all America. He was
in the broadest and best sense the public’s
man.
Many will try to fa.shion a phrase
which will tell what this remarkable man
meant to America. Only one paragraph
properly covers that subject and it came
from his own pen. Ble said :
“The resources which have required
ages for their accumulation, to the intrin¬
sic value or quality of which human
agency has not contributed, which when
once exhausted are not reproduced and
for which there are no known substitutes,
must serve as a basis for the future no
less than the present welfare of the na¬
tion. In the highest sense, therefore, they
should be regarded as property held in
trust for the use of the race rather than
for a single generation and for the use of
the nation rather than for the benefit of
the few individuals who may hold them
by rights derived from the state, the orig¬
inal owner.”
Dr. Holmes when he said those few
simple, straightforward words, stepped
out upon that broad plane which is of
American statesmanship. To have been
able to say that and to stand for it puts
him down as one of America’s great men.
We will let that single paragraph stand
as his eulogy, his life history and his
epitaph.
Cost of Selling.
W. J. Dillon, head of a' Chicago
sales agency, was asked to address
the coal convention. Preparatory
thereto, he asked operators and sell¬
ing agencies to give him a statement
of what it costs them to sell coal at
wholesale. This information he
tabulates :
A. An operator, steam and domes¬
tic, tonnage large, entire cost of
selling, $.07 per ton.
B. An operator, steam and domes¬
tic, tonnage large, entire cost of
selling, .066 per ton.
C. An operator, steam and domes¬
tic, tonnage large, entire cost of
selling, $.09 per ton.
D. Shipper, domestic only, entire
/ cost of selling, $.15 per ton.
E. Shipper, domestic only, entire
cost of selling, $.16 per ton.
F. Shipper, domestic only, entire
cost of selling, $.196 per ton.
G. Mine agent, domestic only, en¬
tire cost of selling over $.20 per
ton.
H. Shipper, domestic only, entire
cost of selling, $.10j< per ton.
Many men will look at this differ¬
ently. To us, it means only one
thing. There are far too many sell¬
ing agencies hence the cost of mak¬
ing sales is far too high.
Trade Commission Program.
The Federal Trade Commission is mak¬
ing progress rapidly. It was created by
Pre.Udent Wilson mainly as a hope and
as a promise. He did not expect it to do
very much at once. He expected it would
grow gradually and only as the people
came to demand that it undertake bigger
things.
In point of fact, it in six months has
arrived at the point which it took the
terstate Commerce Commission ten years
to reach. That is, it already has begun to
demand standardized accounting.
Lest the importance of this step be
missed, we have this to say about the In¬
terstate Commerce Commission. It has
been helpful to railroads and the public in
two ways only. The one of these that far
overshadows all else is that it gave the
railroads standardized accounting. The
lessor thing of value was that it central¬
izes railroad authority. Some will say
that the commission has been of great
benefit because of its decisions. We are
not arguing that point here but we do not
think so. It has straddled on too many
issues.
But it has forced standardized account¬
ing. That was of incalculable value be¬
cause it put the hand of the federal gov¬
ernment upon the shoulder of every dis¬
honest railroad official and stopped him
from hiding his rascality or his incom¬
petence behind a garbled statement of
cost. Today, if a man is incompetent to
operate a railroad economically, he al¬
most automatically passes into the discard
so soon as his record is known and a man
is chosen who can do the job properly.
Concealment of personal defects through
a manipulation of the books is no longer
possible. Especially price cutting on a
misformed conception of what it costs to
carry goods is out of vogue. The clear¬
ing up the railroad misunderstandings, and
the destruction of ignorance as the reason
for rate cutting helped the railroads im¬
measurably. Therein lies the big work
done by the Interstate Commerce Com¬
mission and the root of it all is standard¬
ized accounting.
Now the Trades Commission purposes
to perform this same service for general
business. It proposes, practically, to
force standardized accounting in business.
The same ends will be achieved, namely:
First, ignorance will no longer be the basis
of price wars, and second, the incompe¬
tent man will not remain at the head of a
business by reason of his ability to con¬
ceal his defects through distorted finan¬
cial statements.
If we can put business on a plane where
every man who cuts prices knows that he
is giving away money, we will have an
end to much of the “riotous competition”
about which business has complained so
bitterly in the last few years. By mak¬
ing this possible, the Trades Commission
is making progress. In fact, it is racing
to its goal almost before it has started.
More speed to it.
Telltale Figures.
One Chicago retailer was sure that he
was making money on every pound of coal
he sold. He sold mostly to what are known
as peddlars. He therefore got cash in ad¬
vance. He got the current price on the
standard grades and better than the cur¬
rent price on most grades. He was quite
sure that everything which moved out of
his yard left a profit behind it.
Then, to reassure himself, he called in a
public accountant to audit his books. The
one department that this dealer was sure
was paying big was his anthracite trade.
He had reasons to believe that he was getting
the regulation profit and, for other reasons,
had an edge on his customers to the extent
of twenty-five cents a ton. Yet, when the
figures were all down, it was found that
his supposed advantage had been wiped out
and that he not only had no “regulation”
profit but actually had had a loss, through¬
out an entire year, of one and a half cents
a ton.
This is an old story in a new dress. Still,
it will bear telling and telling again. No
man knows whether his coal is making or
losing him money until he charges against it
every cent of expense and subtracts that
from the selling price. When and only
when something is left of the selling price,
he can say truly that he has a profit To do
anything else is to guess, which is a dan¬
gerous thing in business.
No. 3]
THE BLACK DIAMOND
51
Dr. Joseph A. Holmes Dies at Denver.
At four o’clock in the morning of Tuesday
of this week Dr. Joseph A. Holmes, director
of the Bureau of Mines, died at Denver, Colo.,
where he was living temporarily in an effort
to recover his health. He had quit Washing¬
ton something like a year ago to seek the
recovery of his health in the west. He had
spent most of that year at and around Phoe¬
nix, Ariz., but a turn for the worse lately had
caused him to move to Denver. His malady,
which was a wasting one, increased rather
than decreased and death on Tuesday morn¬
ing was the result.
The body was prepared at once to be trans¬
ferred to Washington and was in Chicago for
three hours on Thursday afternoon of this
week, where respects were paid to the dead
by representatives of the Illinois and Indiana
coal trade.
There is little need to say to any man in the
mining business in America much now about
the remarkable career of the head of the Bu¬
reau of Mines who has just passed away.
Every one is aware that he died as a result
Dr. Joseph A. Holmes.
of overwork, this work being done to give
the mineral industry a proper standing with
the American people and to see that some¬
thing of appreciation of the value of our natu¬
ral resources should result in proper measures
of practical conservation. Such work per¬
formed always under the eye of the mining
men of America naturally challenged atten¬
tion to the man years ago, with the result
that every phase of his activity has been
known in detail and every characteristic of
the man became impressed upon the mind of
the American people.
Dr. Holmes was a North Carolinian by
birth. He was an engineer and an educator
in his earlier days, but there was nothing in
that career which suggested the latent possi¬
bilities in the man, which possibilities devel¬
oped so rapidly after he went into the gov¬
ernment service something like eight years
ago. At that time the government began to
be concerned about the future of our natural
resources. As a consequence there was or¬
ganized in the Bureau of the United States
Geological Survey, under the Department of
the Interior, a subbureau, which was known
as the technologic branch of the Geological
Survey. Dr. Holmes was chosen as the head
of that subdivision of the government activ-
ity. .
His first attention was directed to the use
of coal and other minerals. He began at
once, in fact, an active study of how coal
might be used so that the efficiency would be
greater and the waste less. He was, in fact,
the man who started the tremendous discus¬
sion which has since enveloped the country
as to how to get greater fuel economy.
It was this enterprise which developed the
organizing ability of Dr. Holmes. He started
everybody to discussing fuel economy. One
of the first things he did was to enlist the
heads of the mechanical departments of the
colleges and universities and cause them to
specialize on the study of greater use of fuel.
He enlisted the active co-operation of both
the engineers and the chemists.
From having started the education of the
American people in the universities, he di¬
rected his attention to the engineer societies
of America which govern the present prac¬
tice. Before he had gone very far every
such society in America was discussing how
fuel might be used to better advantage. As
a matter of fact every organization which
had to do with trying to get greater fuel
economy can be traced directly back to the
zeal with which Dr. Holmes carried on his
propaganda.
From this he naturally extended his field of
operations to influence the manufacturers of
coal burning appliances. Thus in an ever
widening circle his influence upon America
came to be astounding.
His attention was next directed to the con¬
servation of life in the mines. A number of
disastrous explosions in coal mines in the
leading states caused him to begin an investi¬
gation into the many things which endangered
life around the mines. Perhaps the biggest
movement which he brought into existence
there was the safety first movement which
has spread to every other industry in the
United States. Sub-divided, this movement
expressed itself in a study as to the causes
and prevention of dust explosions; the proper
use of electricity in the mines; purpose and
development of first aid to the injured corps;
the improvement of the ventilation, and the
development of permissible explosives.
With all of these things attracting his at¬
tention and calling for some definite action
on the part of the government, the instrument
at his disposal was not big enough. There¬
fore, the technologic branch of the Geolog¬
ical Survey was abandoned and there was cre¬
ated in the Department of the Interior a
separate organization known as the Bureau
of Mines. Dr. Holmes was placed in charge
of that work and carried on in a larger way
the things which he had undertaken with his
former and smaller equipment.
But the government, whose servant he was,
proved a niggard in the matter of appropria¬
tions. There was much work to do but not
Columbus, O., July 14. — {Special Correspond¬
ence.) — A new factor has been introduced into
the much-disturbed Ohio coal situation by the
decision of the supreme court, mentioned last
week, which upholds the right of the state utili¬
ties commission to authorize lower freight rates.
Railroad officials, it is stated are now in confer¬
ence on the matter of further fighting the case
on which this decision is based, that of the com¬
mission’s reduction of the commercial coal from
the Nelsonville assembling yards to Toledo to
eighty-five cents, replacing the $1 rate now in
force. To stave off the enforcement of this rate
the railroads will have to go into the United
States courts.
Along with this new rate, if it stands, will
come agitation for general reductions that will
help protect Ohio against West Virginia, in
equalizing alleged inequalities. General Manager
Winder of the Sunday Creek Company is the
leading figure in this fight. He made effort to
secure action from the legislature last winter,
and has given prominence to the rate question in
newspaper interviews regarding reasons for the
company’s temporary abandonment of a large
number of its Ohio mines. That this is bearing
fruit in the way of arousing interest is shown
by the fact that the commission within the past
few days has been making inquiries among
Columbus shippers, those having West Virginia
connections and otherwise, to draw out opinions
and information on the rate problem. An early
consideration of the whole question appears to
be likely.
Upon the result is said to partly hinge the
matter of whether or not the Sunday Creek
Company will continue to operate its mines on
enough money to pay the expenses. There¬
fore, instead of many men to do many things
there were but few men to do far more than
they were supposed to do. Seeing the im¬
portance of the work. Dr. Holmes undertook
far more than his strength could possibly
endure. Those who have been associated with
him appreciate and have appreciated for years
this fact to the full. They have known, for
example, that when something of a pressing
character had to be done he would quite fre¬
quently work until he fell asleep over his
dictation or his manuscript; reviving himself
by an almost superhuman effort, he would
continue to work when his associates were
begging him to relinquish it and take some
rest.
The Chicago coal men who went to view
his remains on Thursday of this week had
a very lively recollection of the manner in
which he did things. There was to be a
meeting of mining men in Chicago and the
details of the program and procedure were
to be mapped out. He had just completed a
long, hard trip around the country. He had
spent night after night upon the sleeper and
day after day meeting men and discussing
plans that would further his work. He had
in his portfolio parts of speeches which he
had begun to prepare and parts of articles
which he had promised to write for those
who were disposed to help the government
spread its gospel of conservation. Laying
these things aside temporarily, he went into
the conference at nine o’clock in the morning
and without an instant of rest or distraction
from the business at hand he worked in in¬
tensified concentration until five o’clock in the
afternoon. Then he dismissed his associates,
locked himself in a room and began to go
over some of the manuscript which he had
laid aside. He continued at that until he was
late for a dinner engagement, which was a
business conference. In the evening he took
another long trip across the city and late at
night was still in conference with the people,
who followed him to the train. That evening
he carried his portfolio on board the train,
worked until after midnight, and arose the
next morning to start in another city an¬
other round of discussion of government work.
It was this sort of thing which caused the
untimely death of one of the most remarkable
men who has ever been in America’s public
service. As a result of his manifold activities
he died before his time, but he left such an
imprint upon the American mind that what
he started will go on to a natural conclusion
because the foundation upon which he pro¬
ceeded was sound and good.
the T. & O. C. railway, or shut them down
indefinitely, as has been the case on the Hocking.
Another factor will be the reply of the miners
to the Hocking Valley Coal Operators’ Associa¬
tion on the question raised as to favorable con¬
ditions having been granted eastern Ohio in vio¬
lation of agreement made with the Hocking
Valley when the mine run wage scale was signed
last August. Any concession to the Hocking
operators at this time would likely throw the
eastern Ohio situation into confusion again.
It is a pretty muddle into which the miners
seem to have got themselves through forcing the
operators into the trenches with the Green law.
They have a paper scale only, as one operator
expresses it, because there can be no work^ for
them in any large sense under its prohibitive
terms. Many operators feel that the whole
Ohio coal situation, involving all fields, is rapidly
drifting toward a crisis which will rnean the
strangling of the industry or a new deal in which
mining scales, freight rates and better co-oper¬
ating among producers will all play a part. The
miners, it is asserted, will first have to learn
that in bringing ruin on the operators_ they have
killed their own goose. Eastern Ohio is cited
as an instance of the injury which labor inflicts
upon itself. With settlement reached after over
a year of idleness, the miners have no work, a
condition resulting as much from the field’s mar¬
kets having got away from it as from industrial
depression.
G. T. Rider, president, Scanlon Coal Company,
Louisville, has been in Chicago attending the
national convention of coal men.
New Ruling Complicates Ohio’s Situation.
THE BLACK DIAMOND
[July 17
52
Have Prices Kept Up With Rising Costs?*
«
News Local to Chicago.
F. C. Honnold of the Chicago & Big Muddj'
Coal Company was in Springfield this week.
Among the week’s visitors was N. D. Ying-
ling, geiieral manager of the East Jellico Coal
Company at Lexington, Ky.
Because the retailers were mostly at the
coal convention at the Auditorium this week,
the regular meeting of the Chicago Coal Mer¬
chants’ Association, scheduled for Tuesday
afternoon, was postponed.
H. A. Kuhn, a coal operator of Pittsburgh,
was in Chicago the early part of this week.
While here he took occasion to run out to
the third vein district to study the long wall
mining method employed in that district.
The announcement is made that the City
Coal & Coke Company has taken over the
yard and business of the Cherokee Coal Com¬
pany, effective at once. The City Company
has John C. Michael for its president and the
yard is located at No. 3600 Princeton avenue.
The Cherokee Coal Company was owned by
E. H. Michael and Frank Swan, and the yard
was located at Fiftieth street and the lake
shore.
When news of the death of Dr. Holmes
reached Chicago on Tuesday, most of the
operators were out of the city. However,
arrangements were made through C. M.
Moderwell, president of the Illinois Coal Op¬
erators’ Association, and Carl Scholz, presi¬
dent of the American Mining Congress, to
have a committee at the station on Thursday
afternoon when the party accompanying the
body to Washington passed through Chicago.
One of the week’s visitors in Chicago was
J. F. Clarke of Davenport, Iowa, the western
representative of the Mitchell & Dillon Coal
Company. He has just returned from a trip
into the northwest, visiting, among other
places, Ashland, Wis. He says that the re¬
ceipts of coal in the northwest are far below
normal and he is rather inclined to believe
there wjll be a shortage of anthracite if the
demand this year is anywhere near normal.
The lake movement to that port has not been
up to expectations.
I. L. Runyan, secretary of the Illinois &
Wisconsin Retail Coal Dealers’ Association,
is in receipt of a communication from P. L.
Price, president of the Roanoke Retail Coal
Dealers’ Association of Roanoke, Va. This
letter says that that association is being re¬
organized and an attempt is being made to
form a state association. The letter inquires
as to the methods used b}^ the Illinois and
Wisconsin and other associations in getting
results. Apparently the association spirit^ is
growing, as is indicated by reports coming
from so many different districts concerning
new associations being formed.
The directors of the Illinois & Wisconsin
Retail Coal Dealers’ Association, carrying out
an intention to hold a meeting every three
months in Chicago, came together at the
offices in the Great Northern building on Mon¬
day of this week. Those in attendan.ee were:
J. B. Dooley, the president, and Howard Kin¬
sey, of Peoria; Peter Beck, of Harvey, Ilk;
Joseph Rademacker, of Milwaukee, and J. G.
Moore, of LaCrosse, Wis. The first thing
taken up was the re-election of I. L. Runyan
as secretary and then there was discussed the
matter of destination weights. A committee
was appointed consisting of Mr. Dooley, Mr.
Kinsey and Mr. Beck to get this matter _m
shape for presentation to the Illinois legis¬
lature when it meets the next time.
Chicago sales agencies who handle eastern
Kentucky coal are in receipt of information
from the mines this week to the effect that
1,300 miners employed by the Continental
Coal Corporation on Straight Creek, near Pine-
ville, went out on strike on July 1st. On
July 6th the miners employed by the Prosper
Coal Company in the Brush Creek field and
the miners employed by the New Bell Jel¬
lico Coal Company in the Greasy Creek field
also went out on strike. It seems that about
three months ago these mines, which are non¬
union, decided to reduce the wages in an
effort to sell the coal at a price which would
put it on the market in competition with other
coals. A few companies only in that field
resorted to the practice, much against the
advice of the others. There was a promise
of a restoration at a near future date, but
when this did not come in three months the
rniners decided to go on a strike.
By W. S. Bogle.f
I can’t conceive why unpleasant things should
he injected into what would otherwise prove a
very pleasant occasion, and that I should be se¬
lected as the injector. The time allotted, how¬
ever, is short and we will then pass on to more
agreeable subjects. The subject that I am asked
to speak on is the following question: “Have
Selling Prices Kept PIp With the Rising Costs?’’
Outside of anthracite, which is the only part
of the coal producing industry in this country
that is conducted on sound business principles,
that question could be answered fully and com¬
pletely with one small word of two letters —
N-0 — No. But that could be amplified by the
further statement that each increase in the cost
of production has been followed by a decrease
in selling prices. This sounds incredible, but
it is true.
Labor constitutes ninety to ninety-five per cent
of the producing cost. Practically every agree¬
ment that has been entered into with labor in
the past ten years, excepting the last one, has
contained an advance in wa.ges. And yet, in
every instance immediately following such ad¬
vances, bituminous operators have reduced their
selling prices below those prevailing under the
previous scale. And selling prices under the
W. S. Bogle.
present scale have been steadily reduced year
by year since it was first agreed upon.
There are other increased costs. Compensa¬
tion laws have added three to four cents per
ton to the cost of production. Even mutual
companies, which are intended to be conducted
without profit, have been obliged to more than
double their rates for liability insurance.
Cost of supplies of all kinds have increased
and has added to the cost of production. Shaker
screens, rescreening plants, picking tables, load¬
ing booms and other devices have been installed
at a heavy outlay of money, and while they
may improve the quality of the product, at the
same time they add to the number of sizes and
materially to the cost of production.
The cost of the plants themselves has in¬
creased tenfold in the last twenty years and the
increased carrying and depreciation charges
thereby entailed add to the cost of production.
Certainly all these additions to the cost of
production would justify at least some advance
in selling prices, but sellin.g prices have not
advanced ; they have declined. Such a situation
means one of two things: Either the industry
enjoyed abnormal profits in years gone by and
is gradually coming down to earth, or else the
industry is not being conducted in accordance
with sound business principles and is on its
way to disaster.
Abnormal profits produce multi-millionaires,
and the coal industry is the only important one
in this country that has not produced one or
more. But a glance at court records discloses
the fact that they are strewn with the wrecks
of coal operations, and it is a matter of com¬
mon knowledge that many of the present opera¬
*An address before the coal convention and Kokoal
Pow Wow in Chicago, July 12.
tOf W. S. Bogle & Co., Inc., Chicago.
tions are in the hands of banks and striving
desperately to avoid receiverships.
There are many causes that could be cited as
contributing to this situation, but the funda¬
mental one of all is the over-production that has
taken place and the excess of capacity over
consumption. Given a market for 100 tons and
a production of 105 tons, that extra five tons
will make the price on all of the 100 tons, and
so well has the situation been known to the buy¬
ers that the larger ones have frequently dictated
prices to the seller.
The operators have been charged with re¬
sponsibility for this over-production and fre¬
quently derided.
The operators have found out the difference
and have made a number of sincere efforts
to correct the situation by the only known ef--
fective method — co-operation. But the bright¬
est minds among them and the best legal talent
they could procure have until recently been un¬
able to formulate a plan that did not conflict
with the law “as it has been construed by
the past three national administrations” and pos¬
sibly subject them to a criminal prosecution.
The operators from the first have insisted that
they would not knowingly violate the law or
subject themselves to prosecution as criminals,
let the consequences be wffiat they may.
The Administration Attitude.
The time allotted me is too short to detail
the position of the government on the law, but
the basis of it has been that nothing was lawful
that in any way restricted competition, and they
have consistently refused to advise in advance
whether or not a proposed plan was lawful. In
effect, their position has been :
“Put your plan in operation and then we will
investigate it. If we find it conflicts with the
law, we will either bring a suit to dissolve or
a criminal prosecution, but we cannot give any
guiding advice in advance.”
Is it to be wondered at that under such con¬
ditions business has become apprehensive and
timid? That a great industry like the coal in¬
dustry should be on its way to disaster and
that we are suffering from a general depression
in business instead of enjoying the prosperity that
our natural resources and other conditions en¬
title us to?
They have told us that “competition is the life
of trade.” I am willing to .give theorists the
credit of believing it. But my experience in
business has taught me that unrestricted com¬
petition is the most cruel and relentless enemy
of successful business. It means that every man
is arrayed against his competitor in thought,
purpose and deed. It means the strong arrayed
against the weak. The “survival of the fittest”
inevitably will result in monopoly — the one thing
that the law and all good citizens most wish to
destroy.
The New Theory.
But every cloud has its silver lining, and it
looks as if ours would be no exception of the
rule. The courts in their recent decisions have
been more liberal in their construction of the
law, differing radically with the Government’s
view of it. Again, there is no lesson so con¬
vincing as an object lesson, and the people are
beginning to realize that you cannot benefit one
class of a community by harassing another.
They are beginning to realize that the harass¬
ment of business that has prevailed in this coun¬
try has resulted in idle mills, idle men, idle
women and destitution and want to many. The
conviction that business needs encouragement in¬
stead of discouragement is daily gaining ground.
Again, the present administration has made a
great stej) in advance by passing the Federal
trade law and establishing the Federal Trade
Commission, which, if properly administered
must prove the greatest blessin.g ever conferred
on business in this country. The law may not
be perfect — few are at first. But from personal
interviews I am convinced that the commission
as now constituted is composed of earnest, sin¬
cere, broad-minded men who sympathize with
business and are anxious to facilitate it in every
legitimate manner under the law.
Several plans of co-operation are before them
which it is hoped they will approve. One of
these is from the coal trade. Others will un¬
doubtedly follow, and if their policy proves to
be to control big business instead of annihilat¬
ing it, I can see the dawn of an era greater,
better and more prosperous than this country
Has ever enjoyed.
No. 3]
THE BLACK DIAMOND
53
Facts Which Determine
The Welsh Coal Situation.
The Welsh coal trade is in a very troubled
state, and it is therefore out of the question
for much husiness to he done. It is said that
the cutting off of exports to neutral countries
has caused very serious monetary loss to many
exporters. Many collieries have their prin¬
cipal output taken by certain of the neutral
countries, and as new markets to make up
for the loss of the old cannot be secured,
these collieries must suffer. Owing to the
stoppage of exports except to the allied coun¬
tries, coal has accumulated on the docks and
many collieries have been forced to shut down
owing to the shortage of cars. Shippers are
not eager to do contract business, and in the
matter of spot purchases, buyers are able to
obtain concessions of 2s and .'is from shippers
who have coal accumulated. Some coals have
declined in price from 35s and 2(5s to 25s and 26s.
Ordinary seconds are quoted at 25s to 26s ; best
bunker smalls at 19s 6d to 20s ; Black Veins at
26s and 27s; Western Valleys at 24s to 25s;
Easterns at 21s to 23s, and inferiors at 19s to 20s.
Cardiff advices have it that the Egyptian Irriga¬
tion contract for about 60,000 tons has been
placed, about 50,000 tons of same coming to
American firms, and the balance to Monmouth¬
shire firms. Prices are not made public. The
Egyptian State Railways contract for 360,000
has not yet been awarded. Shipments for the
last week reported from Cardiff amounted to
195,757 tons, as compared with 389,497 tons for
the corresponding week last year. The small
coal market is still affected by the unsatisfactory
conditions obtaining at the French ports, where
there is a great congestion of ships owing to the
shortage of labor.
Recent charters from Cardiff have been as
follows : To Alexandria, 25s ; Genoa, 22s to 22s
6d; Las Palmas, 19s; Cape Verde, 20s; Lisbon,
15s and 15s 6d; Leghorn, 20s to 21s; Marseilles,
24 fr. and 25fr. ; Mantes, 15J/2 fr. ; Port Said,
22s 6d to 24s ; Pernambuco, 24s ; Rio Janeiro,
25s to 25s Od ; River Platte, 26s 6d ; Savona,
22s Od.
Recent freight charters from the Tyne have
been as follows: To Bordeaux, 20s; Genoa,
26s to 27s 6d ; Las Palmas, 22s ; Marseilles, 24s
6d to 28s; Naples, 30s; Piraeus, 31s to 31s Od;
Port Said, 28s; St. Vincent, 23s 6d.
Welsh Coal Crisis.
Cables on Tuesday of this week stated that
representatives of more than 42,000 miners
in South Wales have voted to strike on Thurs¬
day of this week unless the mine owners grant
the full demands of the men for a new wage
agreement. Advices state that the decision was
reached by a majority of 857 votes, each vote
representing fifty members of the federation.
This vote was in opposition to the adviee of
the men’s leaders who recently promised the
new Minister of Munitions that there would
be no strike in the coal trade, in return for
his action in leaving the miners out of the
trades covered by the Munitions bill. On
Thursday the strike was declared and the
government took over the available supply
of coal.
On Tuesday, Walter Runciman, president of
the Board of Trade, announced in the Com¬
mons that the government did not intend to
let the South Wales miners go on strike and
would put in force the drastic powers pro¬
vided under the recent munitions act.
A Cardiff cable of same date read:
“Announcement made in the Commons to¬
day that the South Wales coal field had been
proclaimed by the government as being under
the Munitions act, was heartily welcomed
here. The ultimatum issued by the miners’
delegates yesterday came as a shock to every¬
body outside of the coal trade. It seemed
incredible that anyone would be willing to
jeopardize the supply of fuel for the navy
when the very life of the nation depends upon
the navy.
“Colliery owners had intimated to the gov¬
ernment their readiness to co-operate with
any measures for preventing stoppage and
have drawn up the following notice:
“ ‘This colliery will continue open for work
upon terms to be settled by the government.
In view of the present crisis it is of utmost
importance for the safety of the country that
there should be regularity of work by work-
Our Export Prospects.
men and any workmen absenting themselves
will be assisting the enemy.’’’
.‘\bout eighty colliery owners, employing 156,000
miners, are affected by the dispute.
Foreign Freight Rates.
W. W. Battie & Co., Produce Exehange, New
York, report as follows, under date of July 12:
Since our last report we have chartered a
number of steamers to take coals to South Amer¬
ican, Mediterranean and West Indian ports, and
our last charters to Lower Plate ports were at
34/-6, although it was claimed that others were
offering 35/- at the same time for boats of similar
size and in similar position.
Four large British steamers are reported as
having been chartered for three trips each for
coals to the west coast of Italy at 4()/-6, but we
think this report is incorrect, as we had the
same boats proposed to us at 40/- for three trips.
Single charters are at considerably less than
this rate, our last fixtures being at 36/- 37/- to
west Italy.
We would quote freight rates on coal by
steamer as follows :
West coast of Italy . 36s. @ 37s.
Marseilles, about . 35s.
Barcelona, , about . 34s.
(Spanish dues for account of cargo.)
NOTE — Charters for Italy, France and Spain
read: “Lay days to commence on steam¬
er’s arrival at or off port of discharge.
One shilling per net register ton per day
demurrage.”
Montevideo, about . 34s. 9d.
Buenos Aires or La Plata, about . 35s.
Rosario, about . 36s. 6d.
Rio . 35s.@36s.
Santos, about . 36s.
(Consignees paying docas dues.)
Valparaiso or Callao . $.25@.506
Havana . 2.00 @2.25
Cardenas or Sagua, about . 2.75
Cienfuegos . 2.75@3.00
Port of Spain, Trinidad, about . 3.50
St. Lucia, about . 3.50
St. Thomas . 3.00@3.25
Barbados, about . 3.50
Kingston . 2.75@3.00
Curacao . (and p. c.) 3.25@3.50
Santiago . 2.50@3.00
(luantanamo . ; . 2.50@3.00
Demerara, about . 4.25
Bermuda, about . 3.00
Vera Cruz . 3.50@3.75
Tampico . 3.50@3.75
Recent Coal Freight Charters.
Steamer - , Atlantic Range to Pacific coast port, coal,
$5.25.
Steamers Strathspey (Br.), Strathaven (Br.) and Tiver¬
ton (Br.), Virginia to west coast of Italy, coal, p. t.
Steamer Ilarlen (Br.), Philadelphia to west coast of
Italy, coal, p. t.
Schooner E. Starr Jones, Norfolk to Pernambuco, coal,
$7.25.
Steamer Moosdyk (Dutch), Baltimore or Virginia to
Buenos Aires or I.a Plata, coal, 34s. fid.
Steamer Urd (Nor.), Baltimore to Stockholm, coal, p. t.
Steamers Dorington Court (Br.), Eleni Strathatos
((ireek) and Petrilses (Greek), Virginia to Italy, coal, p. t.
Steamer - (Br.), Philadeliihia to Barcelona, Bilbao
or Cadiz, coal, 37s. fid.
Schooner Henry C. Brown, Philadelphia to Calais,
coal, SI. 25.
Steamer Bruckhaus (Br.), Baltimore to Honduras,
coal, p. t.
Country — January February
Italy .
13,2.S7
. 7.371
. 5,8f)0
2,554
British West Indies:
. 1,452
Barbaiios .
. 2,110
8.04K
3,203
10,893
1,080
49,000
698
. 14,235
. 3’7fil
Chile .
. 2A00
1,210
8,286
Argentine .
. 7,540
4,624
. 13,782
■ 20;n49
26,551
632
. 27,321
Porto Rico .
. 2,450
1,784
802
Totals .
154,291
The above figures do not include bunkers.
Steamer Alf (Dan.), Baltimore to Bocas del Toro,
coal, p. t.
Steamer Magnus Mansor, Newport News to Pernam¬
buco, coal, $7.50, prompt.
Steamer Farmand (Br.), Philadelphia to Vita. Cuba,
coal, p. t.
Steamer Osterdyk (Dutch), Norfolk to west coast of
Italy, coal, 37s., prompt.
Steamers Harmattan (Br.) and Holtye (Br.), Balti¬
more to west coast of Italy, coal, p. t
Steamers Belgien (Br.) and Erinier (Br.), Baltimore
to Marseilles, coal, p. t.
Steamer Strathcorn (Br.), Philadelphia to Barcelona,
coal, p. t.
Steamer Sommelsdyk (Dutch), Philadelphia to Rio
Janeiro, coal, p. t.
Schooner King Josiah (Br.), Philadelphia to Halifax,
N. .S., 2o0 tons coal, $2.
Schooner Lucia Porter, Philadelphia to St. John N
Ik, 550 tons coal, p. t.
Schooner Carrie A. Lane, Philadeljihia to Porto Rico
l,2o0 tons coal, p. t. *
Steamer Glenmont (Br.), Philadelphia to Antilla, coal
p. t.
Steamers Colomba (Ital.), Eurichetta (Ital.), II Pie¬
monte (Ital.) and Catarina Accame (Ital.), Baltimore to
Italian ports, coal, July.
.Steamer Bendew (Br.), Baltimore to Barcelona or
Valencia, coal, p. t., spot.
Steamer Zambora (Swed,), Baltimore to a Swedish
port, coal, p. t., prompt.
Steamer Eliofilo (Ital.), Baltimore to Italian port coal
p. t., spot.
Steamer Derwenthall (Br.), Baltimore to Marseilles
coal, p. t., spot.
Schooner M. D. Cressey, Norfolk to Bahia, coal, p. t
Schooner E. F. Northam, Philadelphia to Yarmouth
N. S., coal, .$7.90.
Schooner Laura Haldt, Philadelphia to Paramaribo
coal, $4.25 and port charges. ’
Selling Our Coal Abroad.
Persons who worry lest the coal deposits of
this country run out in a million years or less
may take fresh alarm from the rapid jumps in
the quantity of coal now being exported.
.Shipments of coal from Atlantic ports for
the first six months of this year are only 7.50,000
tons behind the total for the entire year, 1914.
During this first half of 1915, Baltimore more
than doubled its coal exports as compared with
the corresponding period last year.
Not many years ago 1,000,000 tons was a fair
figure for the amount of coal exported from
the Atlantic seaboard in a twelve month. This
year, at the present rate, something like 8,000, 000
tons will be sent abroad.
With these figures The Black Diamond, organ
of the coal trade, heralds “the advent of a new
era for the export coal trade of America.” Re¬
laxing of British competition has encouraged the
American coal men to go after foreign trade.
American coal is pushing its way to a recognized
place in new markets of Europe and South
-Aiperica. In the first six months of this year,
Baltimore shipped four times as much coal to
Italy as for the same period last year, eight
times as much to the Argentine.
Whether American coal can hold its own in
these markets after the war is over depends upon
whether enough American ships are built to
carry it, — A^ezv York World.
Hampton RoaiJs Exports.
Presented below is a statement showing cx-
imrts of coal from Hampton Roads (Lambert’s
Point, Sewall’s Point and Newport News) for
the first si.x months of 1915, showing destina¬
tions :
March
April
May
lune
Total
41,099
146,570
170,162
244,893
642,706
1.391
3,254
4,645
1,524
10,480
13,648
25,652
7,420
1.3,147
20,567
5,746
11,180
16,926
7,865
8,007
15,872
2,348
2 348
10,886
10 886
6 883
6 883
9,746
.3,800
13,546
6,550
6,570
15,802
36,293
2.223
7,447
1,125
19,149
11.913
14, .535
5,500
5,541
37,489
8,681
5,3.38
4,541
23,012
9,922
0,147
4,47(3
14,026
44,720
1,831
1,750
1,697
8,571
11.793
4.170
2,141
11,634
40,640
2,295
1,645
8,700
13,720
47,976
48,035
30,697
29,287
210,830
7,177
3,800
.3,414
18,850
1,241
500
.3,277
750
7,86S
3,143
4.353
21,014
26,410
24,057
26,982
114,289
10,273
36,635
14,.522
11,968
73,398
4,637
4,673
4,661
4,641
23,2.36
39.706
62,534
60,588
101.056
298.615
47,600
39,601
34,321
47,695
223,089
231
863
719
719
2,395
5,707
2,994
15.3.30
8,618
13,147
21,765
5,418
5,418
8.014
8,014
802
512
2.116
4,023
2,439
6,162
155,849
453,178
442,162
604,305
2,027,392
54
THE BLACK DIAMOND
[July 17
General Review.
There Is Something of a Healthy Im¬
provement in the Coal Market
Generally for This Week.
Pittsburgh coke producers are recording
rises in prices now with expectation of much
higher prices later. Shippers by lake are call¬
ing attention to the belated movement and
this is speeding up shipments. Export sales
are heavier and inquiries are large. In the
interior the time is approaching when fall
buying customarily starts and already there is
some practical suggestion of it.
In the east it is reported through New York
the sale of anthracite coal is abnormally light
even for this season and the operators are cur¬
tailing anthracite production sharply, although
inquiries are heavier. There is a sentimental
improvement in bituminous, but so far the ac¬
tual change has been of little importance.
Because July is customarily a month of
small business in New England, the Boston
report says that the customary slump is now
occurring. There is a lessened demand for
anthracite from the retailers because the mills
and factories are closing down for inventory.
There is also a small demand for bituminous.
The market has been none too strong because
shipments have been rather heavy.
At Philadelphia, it will be recalled, the piers
were cleaned up over the holiday, first by
the reduction in shipment and second by the
increase in demand. This last week the de¬
mand has continued heavy and shipments have
been increased. The market is still ten cents
a ton above what it was and the volume of
business is appreciably larger. In the anthra¬
cite field all of the operators, including the
so-called independents, have curtailed ship¬
ment rather sharply.
At Baltimore, the export trade has fallen
off a little. The week’s shipments were but
57,000 tons, or about 30,000 tons short of what
has been done lately. However, inquiries are
rather heavy. A considerable volume of busi¬
ness is being done on orders which anticipate
shipments direct from the mines, but sales of
spot coal are small.
At Buffalo, the retailers are not buying
much anthracite for immediate shipment, al¬
though orders for later delivery are heavy.
Bituminous continues to show a slight im¬
provement, which has been the case recently.
Birmingham’s sentiment is somewhat mixed,
the major operators reporting a fair business,
but the others not being quite so well satis¬
fied with current conditions or prospects.
The biggest improvement, it seems, is in the
sale of bunker coal at the gulf ports.
At Pittsburgh the coal market is quotably
and actually unchanged. The mines are still
selling a good deal of coal to the coke ovens
and to export trade. They are selling some
to local industries. The retail demand by all
rail is rather small and the movement up the
lakes is not quite as heavy as it might be.
Labor troubles in southeastern Kentucky
are lessening the supply of coal in the Louis¬
ville market, causing a stray from prices. At
the same time harvesting is under way and
the retailers are able to sell some coal to the
farmers. This brings up a suggestion of im¬
provement which so far has not developed
much actual business.
Taken as a whole, the Cincinnati trade is
not much encouraged by the week’s develop¬
ment, although the retailers in the interior
are beginning to take a little more coal when
prices are right.
In Indiana the operators are noting a slight
improvement in the demand, coming first from
the manufacturing districts and second from
the farming districts. The movement of the
crop explains the latter naturally. The de¬
mand has not increased enough, however, to
enlarge the output or improve prices.
Detroit and Toledo reports both indicate
a continuance of the over-supply of coal, a
tendency to cut prices, and not much but
still some improvement in the demand from
retailers and factories.
The Chicago situation is in every respect
a trifle better than it was a week or so ago.
There is a better demand for most of the
eastern coals, with the exception of anthracite.
Especially there was a better movement in
smokeless among the western coals. The de¬
mand for the domestic sizes has been larger
and prices have been maintained without any
difficulty.
Omaha has had a sluggish market for the
last week. Heavy rains have interfered with
farming operations and thus have checked the
movement of coal from the retail yards to
the farmers. This has reacted upon the whole¬
sale trade by limiting orders.
Chicago Market.
Buying Is Moderate but Prices, Except
on Screenings, Are Firm.
Office of The Black Diamond,
Chicago, July 15.
The Chicago coal market is not much different
this week from what it was last week, and in fact,
not radically different from what it has been in
the last month or six weeks. There is some more
buying of pretty nearly every grade of coal, and
sentiment in favor of better prices and bigger busi¬
ness seems to be solidifying. At the same time
the actual transfer from sentiment to fact is a
little slow.
The slight increase in domestic buyin,g has en¬
larged production a little and with that has come
an increase in the output of fine coal. The con¬
sumption there has not increased, consequently the
market is a trifle easy.
At this time of the year anthracite is always
slow, because July is between the investment buy¬
ing of April, May and June, and the fall buying
of August, September and October. This year the
recession in business is a little more pronounced
than customary and the business is flat. Some
orders are being placed for delivery the latter part
of July and the early part of August, but mostly
the inquiries are for August delivery. Prices are
held firm only because coal is kept off the market.
About the best statement of the smokeless mar¬
ket is that fifty per cent of the contracts have
been closed, but these contracts do not cover fifty
per cent of the tonnage used in Chicago. Some
of the retailers have signed up their contracts for
the full amounts stipulated in previous years and
are now takin.g coal on contract. Others have
contracted for only a part of their requirements.
Others have not contracted at all so far. This
survey of the situation does not take into con¬
sideration, of course, the largest retail establish¬
ment in the city which has a long time arrange¬
ment for its supply. As this indicates, the mine
run business is firm but a little slow. If there is
any shortage of coal later, which seems some peo¬
ple now anticipate, the market situation will be
far from satisfactory for the buyer a little later.
In the meantime the spot buying is a trifle heavier
because some retailers are taking advantage of the
last discount month, prices advancing on mine run
the first of August. Smokeless, lump and egg is
firm at the new circular of $2, and in fact, where
any coal is available it can readily be sold at a
premium of ten to fifteen cents. Prices up to
Thursday were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.05 2.00
The Somerset county situation has not chaaged
in any particular. Prices are artificially firm, but
the business is extremely light. Quotations up to
Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@3.95 1.70@1.00
In the last week the demand for Hocking coal
has picked up just a little, due principally to
country buying. The improvement is not much,
and in fact, prices can be kept firm only by rigid
supervision of shipments. Prices up to Thursday
were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
154-iDch lump . $3.15 $1.50
The market on splint coal has been rather un¬
steady, but some little improvement is noted.
There is not so much free coal being shipped to
this territory because the operators are beginning
to appreciate that by sacrificing in the matter of
price they are prejudicing the reputation of their
product. There is no tendency to advance the
maximum price, but the minimum price is moving
up a little. Prices on better grades on shipments
direct from the mines up to Thursday were:
F. p. B. F. O. B.
Kanawha — Chicago. Mines.
It4-inch lump . $3.05@3.15 $1.15@1.25
Eastern Kentucky coal is quoted at quite a
spread of prices, still the circumstances dictating
what the prices shall be. If the coal is on con¬
signment and approaching demurrage domestic
lump, which includes the block coal, is often sacri¬
ficed at $1.25 or less. If shipments are to be made
direct from the mines, the producers are holding
for prices ranging from $1.50 to $1.75. Commen¬
surate prices are named on the egg coal which has
not a very big sale in this territory,
r. O- F- O- K-
Eastern Kentucky— Chicago. Mines.
Domestic lump . $3.15@3.65 $1.25@1.75
Egg . 3.00@3.15 1.10@1.25
Franklin county prepared sizes had a week of
moderately slow sales, and yet on the whole there
has been a pretty fair increase in volume. The
lump and the No. 1 nut have been moving rather
freely. The egg has been moving, but with diffi¬
culty. The No. 2 nut or special stove has not
been particularly a free seller and a differential in
price alone has given it a call. Steam sizes have
been produced in a little larger volume than the
market would take eagerly and the prices on
screenings as a consequence has eased off a trifle
Perhaps eighty cents is the top, with seventy-five
as a common figure. Prices up to Thursday were :
F. 0. B.
F. O. B.
Franklin County —
Chicago.
Mines.
Lump .
$1.50
Egg .
1.50
No. 1 nut .
1.50
No. 2 nut .
1.35
Mine run .
1.10
2-inch screenings .
.80
Williamson county lump and No. 1 washed coal
have been moving rather freely. The egg has not
been a good seller and there has only been a
moderate demand for the steam sizes of washed
coal. However, the operators are adhering to the
new circular put out two weeks ago, and have
heen closing down the mines rather than sell for
less than the circular indicates. Prices up to
Thursday were :
Williamson County —
Lump .
Egg .
No. 1 washed .
No. 2 washed .
F. 0. B.
F. O. B.
Chicago.
Mines.
$2.55
$1.50
2.55
1.50
2.55
1.50
2.45
1.40
The Saline county operators have had within
the week a slightly better demand for lump coal,
traceable to buying for the harvest period. Screen¬
ings have not been quite so stron.g, with prices of
eighty cents iierhaps representative for the field.
Prices up to Thursday were :
F. O. B.
F. O. B.
Saline County —
Chicago.
Mines.
Lump .
$2.55
$1.50
Mine run .
2.15
1.10
Screenings .
1.85
.80
iK-inch lump .
2.30
1.25
Springfield screenings are still the feature of
that market. Price for this last week was seventy
to seventy-five cents, with perhaps emphasis on
the seventy.
There has been a little better demand for domes¬
tic coal and one or two cases are reported of
where this was on contract up to demurrage. It
is interesting that demurrage was paid rather than
accepting sacrifice in
the market price.
Prices up
to Thursday were:
F. O. B.
F. O. B.
Springfield —
Chicago.
Mines.
r.ump .
. $2.32
$1.50
Egg .
. 2.32
1.50
Nut .
. 2.17
1.35
Mine run .
1.05
Screenings .
.70
In the main, Clinton county operators are still
relying on steam contracts to take up the output
of the mines. They have not begum to specialize
on domestic. It may be because Indiana retailers
are not selling much to the
to Thursday were :
farmers.
Prices up
F. 0. B.
F. 0. B.
Clinton —
Chicago.
Mines.
Domestic lump .
$2.27
$1.50
Egg .
2.07
1.30
Nut .
2.07
1.30
Mine run .
1.87
1.10
Screenings .
1.52
.75
One or two Knox county mines are now sold up
on contract, and as a consequence are off the mar¬
ket. The others are selling little domestic coal
and are concentratin.g on steam trade. Prices up
to Thursday were :
F. O. B. F. O. B.
Knox County— Chicago. Mines.
Lump . . .
Egg .
Mine run.
Screenings
$2.37 $1.50
2.37 1.50
1.87 1.05
1.52 07
Coke is moving but with difficulty. The mar¬
ket for furnace and foundry seems to be rising,
with prophecies of higher prices later. Domes¬
tic sizes of by-product coke are still easy, conces¬
sions of ten to fifteen cents a ton from circular
being made. Prices up to Thursday were :
F. O. B.
Coke — Chicago.
Connellsville .
By-product, foundry .
By product, egg and stove
By-product, nut .
3as house .
$4.76
4.85@5.10
4.65
4.66
3.75@4.90
No. 3]
THE BLACK DIAMOND
55
Pittsburgh Trade.
Conditions Continue Fairly Satisfactory
as to Big Tonnages, but Small
Business Is Lacking.
Office of The Black Diamond,
1502 Oliver Building,
PiTSBURGH, Pa., July 15.
“What has been said can be said again,” so
far as the Pittsburgh market is concerned — the
situation being practically unchanged and a gen¬
eral awaiting of developments in a situation very
hard to analyze, seems to be the order of the day.
The steel trade continues to show betterment,
but its chief end is the foreign business in war
stocks, and while demanding increased supplies
of coke and labor — thus improving certain
branches — its activity is not reflected in the open
coal market, the mills operating generally mining
their own coal and producing their own coke.
The only big business consummated the past
week is the sale of 300,000 tons of coal by the
Pittsburgh Coal Company, through its southern
sales department, to the United Fruit Company
of New Orleans, the delivery to extend over a
period of three years. Some large export orders
are still hanging fire — expected to be closed
momentarily — and aggregating a couple of mil-
ion tons, but various circumstances seem to halt
the purchasers and delay final adjustments —
freights east from Pittsburgh, compared _ with
nearer tide water mines, presumably cutting a
figure in the deals.
Several factors seemingly tend to put the mar¬
ket on the “bum” — the one — the delay in the
starting of lake shipping, the question as to
whether there will be lake demand to any extent,
and when it will develop. If it comes there will
be some hustling develop later in the season to
meet it, particularly if local demand for fall
materializes as the optimists see that it will.
Overproduction is another factor that depresses
the market, especially with the present lack of
demand.
Panhandle slack was to be had the past week
at thirty-five and forty cents, and Youghiogheny
slack at fifty-five and sixty cents. These prices
are said to be under cost of production and not
to be considered as representing the market.
Mine run sold at $1.00 and $1.05, with 3/4 at
$1.10 and 5/4 at $1.20, and yet mines are not oper¬
ating more than fifty to seventy-five per cent of
capacity.
Rumor has it that the Lackawanna Steel Com¬
pany are, or will soon be, asking for quotations
on coke for four additional furnaces to be blown
in soon, and inquiry develops the fact that fur¬
nace coke is bringing $1.85 spot, and contract
holding at $2 to $2.25. One operator asserted
that he would make no contracts extending past
October 1st under $3.00, so confident is he of
the continued and increasing demand. Foundry
coke is looking up as to demand, but no change
in nrices has been reported, quotations remaining
at $2 to $2.50.
With an eight-foot stage at Davis Island dam
last Saturday, developed by the heavy rains of
the latter end of the week, the wickets were
lowered to allow a big shipment of coal aggre¬
gating 1,300,000 bushels to pass to points below
from the Pittsburgh harbor.
The Monongahela River Consolidated Coal &
Coke Company sent the Charles Brown, James
Moren, Tom Dodsworth and the Boaz, each with
seventeen barges and small coal boats. The
Diamond Coal & Coke Company started the
Volcano and the Sam Bernum with fourteen
barges between them. The entire latter shipment
will be turned over to the Volcano after the trip
through the lower pools, and the Sam Barnum
will return. The other towboats will proceed
to Cincinnati, Ohio, or Louisville, Ky., their
destination not having been decided when they
cleared.
The Monongahela river did not contribute to
this rise and large fleets of empties are still
lying in the Pittsburgh harbor, also loaded coal
in the upper pools, awaiting a shipping stage
from the upper waters of the Monongahela.
Much activity seems to be developing in the
coke regions, not only with the steel making
companies, but with the independents as well,
the general outlook for the latter being better
than it has been for the past six months. Two
independent companies in the Fayette county re¬
gion are reported as having blown in 130 ovens
last week, and the Union Connellsville Coke Com¬
pany reported that they have blown in seventy
out of 140 ovens at the Katherine plant at Simp¬
son Station. This plant has been entirely idle
for practically a year and a half. The Consoli¬
dated Connellsville Coke Company has placed in
operation sixty additional ovens at Mount Ster¬
ling plant. The Consolidated company, at its
four plants, now has 600 out of 872 ovens in
blast.
In the vicinity of Brownsville, while from
unofficial sources, it was learned that five small
coke plants were making preparations to resume
operations, which is indicative of the gradual
improvement of industrial conditions throughout
the mining section.
While no official announcement has been made
by the officials of the various companies, it is
known by corporations in Brownsville with whom
the mines are greatly dependent for facilities that
the works are preparing to resume. The works
about to open up are :
Garwood mines of the Etna Connellsville at
Simpson, shut down for over a year.
Champion mines of the Connellsville Consoli¬
dated, near the Brownsville Construction Com¬
pany in Brownsville.
Gray’s Landing, Connellsville Consolidated,
Nos. 1 and 2.
Katherine works. Union Connellsville, at
Simpson.
It is also reported that several idle plants along
the Redstone branch of the Pennsylvania railroad
are to be blown in shortly.
News in and Near Pittsburgh.
The Greenwich Coal & Coke Company, which
has mines in Cambria county, has transferred
161 acres of coal in Green township, Indiana
county, to the Manor Real Estate & Trust Com¬
pany, the land holding concern of the Pennsyl¬
vania railroad, for $12,575.73.
The Andrews Run Coal Company, Pittsburgh,
Pa., is a new company chartered by the state of
Delaware to acquire and operate coal mines and
to prepare the same for market; capital stock,
$250,000; incorporators, Otto F. Lohmann, An¬
toinette F. Lohmann, both of Pittsburgh.
The annual Niagara river outing of the Messrs.
Roberts of Buffalo, announced for the 17th, will
be attended by a number of Pittsburgh coal men,
among them Mr. Stoneroad of the Carnegie Coal
Company, Mr. Gross and Mr. Syroth of the
Keystone Coal Company, Mr. Neeld and Mr.
Milholland of the Clyde Coal Company, Mr.
McQuense of the Terminal Coal Company, Mr.
Marsh of the Pittsburgh Coal Company, Mr.
Hammill of the Meadow Lands Coal Company,
and others.
Wellston, Ohio, and the territory in the vicin¬
ity bids fair to be returned to its activity of
previous years by the formation of the New
Wellston Coal Mining Company with a capital¬
ization of $500,000. The corporation has obtained
leases on about 1,000 acres of land near Wellston
and preliminary developments show that a thirty-
seven-inch vein of coal has been uncovered. It
is planned to mine the entire lease. Incorporators
of the company, all local men, are : J. F. Pflieger
and son, Mark F. Pflieger, owners of the Pflieger
Manufacturing Company of Columbus ; Harry C.
Hughes, a mining engineer and operator ; L. C.
Marion, and E. Dellinger, president of the Del¬
linger company. Headquarters for the company
will be established in Columbus.
Detroit Trade.
Detroit, Mich., July 15. — {Special Correspond¬
ence.) — With neither steam nor domestic coal
showing any special activity in the local market,
a more cheerful feeling seems to have developed
among certain of the Detroit shippers and job¬
bers, who heretofore have appeared inclined to
take a somewhat gloomy view of the outlook.
The improvement in the situation which is
accepted as a hopeful indication by some of the
shippers appears in the fact that the quantity of
coal now being shipped into Detroit seems more
closely proportioned to requirements of the mar¬
ket than for some weeks past, and that in conse¬
quence the amount of various kinds of coal
thrown on the market at reduced prices to effect
immediate sale is not as great as before, while
prices are taking a steadier basis.
The consignment coal problem, though less
vexatious, is not wholly eliminated, and cautious
buyers who are able to take advantage of oppor¬
tunities are still finding West Virginia slack and
nut and pea sizes which may be bought at from
forty-five to fifty-five cents, although the better
quality commands from seventy-five to ninety
cents. With demurrage impending. West Vir¬
ginia lump is obtainable at $1 and upward.
With the exception of Pocahontas lump, all
kinds of coal, including smokeless fine coal, are
being received in quantities fully sufficient for
the present needs of the market. Steam coal
users and retail dealers have not developed as
much interest in the matter of stocking up as
some of the shippers believe would be desirable
at this season of the year, especially in view of
the possible interruption of shipments later by
labor controversies in some of the mining dis¬
tricts.
While the coal now being sent up the lakes
makes a large total, the movement continues to
fall short of what would be the shipments of a
normal year. Delay in movement of coal from
docks at the head of the lakes is still a depressing
influence, though some of the shippers predict
larger activity in that direction in the near
future, on the theory that the opening of the
threshing season in the northwest will increase
the demand for coal in districts which are be¬
lieved to be poorly supplied. The rolling equip¬
ment used by the railroads in moving grain to
shipping centers is expected to aid in distributing
coal which now crowds the unloading docks.
Slow movement of coal from the mines to
Lake Erie is forcing many freighters to return
to the head of the lakes without cargo, though
some of the vessels, not owned by shippers and
without ore handling contracts, are taking delays
of several days to obtain coal on the upbound
trip.
Prices in the local
market on mine
shipment
orders are as follows
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
. $0.95@1.00
$2.35(a2.40
Mine run .
. . 75@ .80
2.15(g2.20
Slack .
1.80(gl.90
West Virginia —
Four-inch lump .
2.76@3.00
Two-inch lump .
2.50@2.65
Three-quarter .
. 1.00(3)1.10
2.40(3)2.50
Mine run .
. . 9o<ai.oo
2.30@2.40
Nut, pea and slack .
. 50@ .75
1.90@2.15
Smokeless —
Lump and egg .
3.60
Nut .
8.10
Slack .
Open
Mine run .
Open
Kentucky Splint —
Lump . .
. 1.20@1.25
2.60(32.65
Egg .
2.40@2.50
Nut, pea and slack .
Open
Fairmount —
Three-quarter steam lump.
. . 85(® .95
2.25@2.35
Mine run . .
2.10(32.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump..,
. 1.50
2.65
Shaker egg and nut .
2.30
Domestic lump . .
2.50
Three-quarter lump .
. 1.25@1.30
2.40(32.45
Mine run .
. 1.00@1.10
2.15@2.25
Nut, pea and slack .
Open
Detroit Local News.
John S. Gatfield of Duff & Gatfield, vessel
agents at Texas Landing on the Canadian side
of the Detroit river, has opened a retail coal
yard near his vessel office.
Cut in two amidships, the steel steamer Matoa,
for many years a coal and ore carrier on the
lakes, is now on her way through the Welland
canal and St. Lawrence river to the Atlantic
coast, where she will engage in the coal trade out
of Boston. It was necessary to cut the ship in
two to get her through the Welland locks.
Lake tonnage employed in the coal trade was
reduced this week by the loss of the steel
freighter Choctaw, owned by the Cleveland Cliffs
Iron Company of Cleveland. The Choctaw, up-
bound from Cleveland to Superior with a cargo
of coal, was struck in a fog Monday morning
oft’ Presque Isle, Lake Huron, by the Canadian
steamer Waheondah, downbound, and sank al¬
most immediately, her crew all escaping to the
Waheondah. Loss on steamer and cargo is
about $125,000.
The Gifford-Wood Co., of Hudson, N. Y.,
are distributing 35,000 booklets describing
their adjustable car loader for handling ice
rapidly from the house to cars or platform,
and also describing their cutter for separating
ice cakes in the house.
The number of the booklet is 18, and will
be gladly sent any reader of The Black Dia¬
mond upon request to the above mentioned
concern.
William E. Minor, vice-president. The Reliance
Coal & Coke Company, Cincinnati, was a Louis¬
ville visitor during the week. Mr. Minor takes
an optimistic view of the industrial outlook in
tlie manufacturing towns of Ohio, at least.
56
THE BLACK DIAMOND
[July 17
Cincinnati Trade.
Buying Is Light but Indications Are for
an Upturn in the Near
Future.
Cincinnati, Ohio, July 15. — (Special Corre¬
spondence.) — The market in this territory is no
lietter. In the language of a disgustetl splint
operator, “it is getting no better fast.” How¬
ever, a few splint people are enjoying a little
better demand and contracts are coming in fair
proportions. What little surplus they have "spot”
is bringing a fair price.
While iron and steel business is better, most
of the business has gone to the United States
Steel Corporation or other large interests who
manufacture their own coke and are independent
of the general coal market. They believe, how¬
ever, that the limit of the production of these
interests is at hand and that they must go into
the open market and buy coal if their business
grows.
Many splint operators have been asked to
furnish figures for export coal. Also the lake
movement, which has started fairly well, has
been gradually reducing the surplus production
in the splint fields.
Spot coal is quite weak and dull, with four-
inch lump going at $1.05, four-inch mine run
sixty cents, full mine run seventy cents, and nut
and slack forty-five cents. It is known that in
some cases good quality coal has sold even lower
than that. Other better grades are quoted and
have sold this week at seventy-five cents for
run of mine, four-inch block as low as $1.15, the
same as one and one-half inch of the same
quality; egg, $1.10, but in some cases was bought
at eighty-five cents, and nut and slack forty-five
and fifty cents.
In the Kentucky field some good coal prices,
this week and the previous week, were quoted
privately at $1.45 for block, $1.10 and $1.15 for
egg; one and one-half inch lump, $1.25; run of
mine, ninety and ninety-five cents ; spot, sixty
cents, and some seventy-five and eighty cents.
Contract making in this field is running better
and slack has been selling at forty to fifty cents
spot.
The matter of contract signing is improving,
many dealers seeing winter staring them in the
face soon with their contract situation not in
condition to be easy of contemplation. But few
have stocked for winter, most having bought
cheap coal.
The tidewater movement is strong and some
of it is now carrying the better grades of splint.
The situation with the smokeless operators
and dealers is not much different from that in
the past two months. All districts are beginning
to feel a labor scarcity, and a car shortage is so
near, in the opinion of some of the operators,
that it is not pleasant to contemplate. They feel
that the labor scarcity, the car shortage and the
pending heavy demand for winter fuel will all
"strike the pike” about the same time and come
down on their defenseless heads in an avalanche.
Cincinnati News Notes.
Captain J. T. Butts of the Carrollton Coal
Company has purchased the elevators of the
Madison Coal Company here and will reconstruct
and improve them to hold sand and gravel, as
well as coal. It will require several thousand
dollars to remodel them as the new owner desires
to have them.
Maury Robinson, representing the Davis Col¬
lieries Company at Columbus, tihio, was a visitor
in the city this week. Mr. Robinson was for¬
merly with the company, but he resigned to help
his father-in-law, who has large plantations in
Arkansas. He comes back now to his old posi¬
tion to succeed W. Hood, who has been holding
the position in Mr. Robinson’s absence.
The Wyatt Coal Company has arranged for a
change in quarters to a more commodious and
convenient location. The company now has of¬
fices in the sixteenth floor of the First National
Bank building and these have become too small
and not conveniently^ arranged for the conduct
of the rapidly growing business of the company.
The new quarters afe •well lighted, and much
more comfortable and sufficiently large for the
present nnrposes of the conqiany. They are lo¬
cated on the ninth floor of the h'irst National
Bank building.
Captain Harry R. Martin of the Convoy, who
was badly hurt when the boat went down, was
believed dead for some days, but he was heard
from at his home at Gallipolis, Ohio, having
swum out from the boat and boarded a train at
once for home. He is rapidly recovering from
the loss of two toes and a badly wrenched back,
and will soon be about. The two tugs, the
Convoy and the Fulton, will be raised from the
bottom of the river as soon as the water goes
down sufficiently. They are valued at nearly
$10,000 each, and it is likely a loss of several
thousand dollars has been entailed by the owners
as it is.
Congressman Bascom Slemp of Virginia, prin¬
cipal stockholder in the new Kentucky River Coal
(Corporation and the man resiionsible for the big
corporation, is said to be on “Easy street” now.
It is estimated by coal men here that his royalties
from the company next year, when they become in
full effect for the operations now working, will
be $10,000 and that in the following years they
will reach $.SO,000 to $100,000 jier annum. Mr.
Slemp was in Cincinnati a few days ago and
said he would not cpiit work if his income should
reach a million dollars a month. He is built for
hard, energetic work and is not happy without
it, his friends here say in an estimate of the
man.
The Big Four railroad contracts for this sec¬
tion, about 400,000 tons, have been let, as stated
before, and it is learned that for the first time
mines along the Louisville & Nashville are let
in on the awards to large tonnage. It is said,
not authoritatively but about correct, that the
Bewley-Darst Company was awarded 25,000 tons ;
the Southern Coal & (loke Company, about 35,000
tons ; the Halmar Coal Mining Company, 25,000
tons ; the Snead-Meguire Company, about 50,000
tons, and that the Wyatt Coal Company and other
companies along the C. & O. railroad obtained
the usual tonnage, about that of last year. The
award has not yet been made public, but the
above is about the award, the company holding
back deliveries until some of its accumulations
have disappeared at the coaling points.
The storm of last week in Cincinnati and
vicinity was very destructive, the property loss
reaching $1,000,000, or perhaps more, and the
loss of life believed to run up to about fifty lives.
Coal Companies feared the loss of all their coal
in the harbors, but, remarkable to say, not a
barge was lost. This is attributed by the coal
men to the fact that the storm lasted but about
six minutes at its worst, and that was not suffi¬
cient to lash the waters to such a fury as to
engulf the barges. However, the tug “Robert
Fulton” of the Queen City Coal Company, and
the “Convoy” of the Hatfield Company, went to
the bottom of the river, the former carrying
Captain Bradford Williams of Covington, a well
known river captain, and the latter going down
with about eight of the crew, including the stew¬
ardess and Captain John Smith, chief engineer
of the Convoy. The body of Captain Williams
has been recovered and his funeral has been held,
but the body of Captain Smith has not been
found, allhough nearly all the bodies of other
members of the crew and the stewardess have
been recovered. A reward of $50 has hcen of¬
fered for the recovery of Captain Smith’s liody.
Report was made Tuesday in the United States
court by Edwin Marmet and Charles W. Poysell,
receivers of the Marmet Coal Company proper¬
ties, that the proposed purchase of the properties
by big financial interests had fallen through for
the time being, although the promoters of the
deal are supposed to be still at work interesting
financiers in the proposition. The promoters,
who are said to represent eastern syndicate inter¬
ests, had agreed to purchase the property for
$1,500,000 and were asked by the court to pay
down, as an instance of good faith, twenty-live
per cent of the purchase price, or $375,000, by
May 15. On that date the promoters reported
that they were unable to make certain arrange¬
ments in time, but that they would be willing to
make the payment July 12. The payment was not
in evidence Monday, the date mentioned, and
Thomas BAce of New York, who is representing
ihe syndicate, announced to the receivers that
he was unable to make the iiaymcnt, but that it
would be forthcoming at a later date. He said
the financial condition in New York was such,
owing to the European war, that the money could
not be raised at this time. It is understood the
creditors and receivers have agreed to offer the
properties for sale September 21, bids to be
called for, and the attorney for the receivers lias
applied for permission to advertise the entire
properties for sale in bulk or in parcel.
(Operators and wholesale coal dealers in the
city are receiving specifications from Columhus,
(Ohio, for the purchase of 17,000 tons of West
Virginia coal for municipal use in the coming
winter. Some of the dealers are placing bids,
but they do not like the plan laid down for the
award. The bid calls for delivery on the B. T. U.
limit of 12,500, two cents per 100 units above
that standard to be paid by the city, if the coal
goes above that limit in the test, as a premium,
and two cents per 100 units to be held as a
penalty by the city for every 100 units the coal
falls below that standard. Dealers do not fear
the standard, but the effect on the bidding will
be peculiar. No company will care to bid on a
basis comparative with that standard, for most
of the West Virginia coal eligible for the con¬
tract is 14,000 units and over, and but little of it
falls below 13,500. If the company should bid
to the value of the coal by the standard he will
he high. It he bids at the standard and the
calculation shows twenty to forty cents above
the submitted price, there would likely be trouble.
The operators say that in all probability the city
is trusting the preparation of the specifications
to university students who do not know the effect
of their proposed plan. The bids come to West
Virginia producers because of the condition in
the Hocking valley, where some of the large
mining interests have been abandoned for the
present.
Denver Trade.
Denver, July 15. — (Special Correspondence.) —
Dullness and summer inactivity is ruling the
market here this week. The retail trade amounts
to almost nothing. There will be a fair tonnage
in all of the bituminous districts, but most of
this can be credited to the filling of back orders.
Storage orders continue to arrive, but only in
moderate volume. It is hardly probable that
future bookings will show much improvement
until the latter half of the month is well begun.
Lignite mines in the northern district are prac¬
tically at a standstill, h'ew are in operation this
week, and those that are running at all report
an exceedingly light output.
In the southern districts, Trinidad mines are
running full time, but they were hehind on storage
and also on regular contract filling. Walsenburg
district will record an output for the week under
fifty per cent of normal.
Few mines are running in the Canon City
district, but it is said that many which had been
idle for several months are being put in shape
for reopening this fall.
Routt county mines are all busy on storage
orders and are still behind on June bookings.
More than one-third of orders booked this week
went to Routt county.
The slack situation is dull, with supply and
demand pretty evenl}' balanced. Prices are un¬
changed.
Lignite prices f. o. b. mines are as follows :
Denver delivery — Lump, $2.35 to $2.05 ; mine run,
$1.50 to $1.05; slack, $1.05 to $1.25. Points out¬
side of Denver — Lump, $2.50; mine run, $1.55 to
$1.05; slack, $1.05.
Canon City District —
For shipment May and June .
For shipment July and August . 2.75
Add 25 cents to above prices for washed nut.
Walsenburg District —
For shipment May and June . 2.50
For shipment July and August . 2.75
Washed nut 25 cents per ton additional.
Chestnut, $1.25 for entire season.
Trinidad District —
For shipment May and June . 2.00
For shipment July and August . 2.00
Routt County District —
For shipment May and June . 2.60
For shipment July and August . 2.75
Western Slope District —
For shipment May and June . 2.25
For shipment July and August . 2.60
From Baldwin, shipments for points east
are 75 cents per ton less than Walsenburg prices,
Lump
Nut
.$2.50
$2.00
. 2.75
2.25
ihed nut.
. 2.50
2.00
. 2.75
2.25
lal.
. 2.00
1.7i
. 2.00
1.7S
. 2.60
2.01
. 2.75
2.2|
. 2.25
. 2.60
1 - - -
) east of
DenvM
Want Rates Reduced.
Denver. July 15. — (Special Correspondence.) —
'\ complaint signed by leading coal, lumber,
brick, and other commodity dealers, has been
filed with the state public utilities commission
asking that the present freight switching charges
of twenty and twenty-five cents a ton in Denver
be reduced to around eight or ten cents a ton.
The complaint sets forth that Denver concerns
are paying from two to five times as much for
switching charges as are concerns in other Colo¬
rado towns. .4t points outside of Denver switch¬
ing charges are usually $1.50 to $2 per car, while
on the same class of freight Denver firms fre¬
quently pay $10 per car.
The switching charges on coal in Denver
‘amount to practically as much as the charge
from the northern lignite district into Denver.
No. 3]
THE BLACK DIAMOND
57
Omaha Trade.
Omaha, Neb., July 14. — (Special Correspond¬
ence.) — Heavy rains continuing through this
territory makes business of all kinds more or less
sluggish and uncertain. Farmers are trying to
get into the fields to try and harvest the wheat
crop, but unable to make much headway on
account of the soft condition of the soil. Dealers
are holding off buying until the last minute in
order to determine whether they will have any
need of threshing coal.
The market on all kinds of coal is more or less
weak. Quite a number of cars of soft coal are
being refused by dealers on account of the in¬
ability to move the coal and the uncertainty as
to the possibility
of selling it for
threshing
purposes.
The following m
Southern Kansas —
arkets prevail :
Mines.
Omaha.
Nut .
$3.20
Slack .
. 1.35
2.70
Franklin County —
Lump .
. $1.35(3)1.50
$3.75(g3.y0
Egg .
. 1.35@1.50
3.75@3.90
Nut .
. 1.35@1.50
3.75(®3.90
Williamson County-
Lump .
. 1.25(gl.35
3.65@3.75
Egg .
. 1.25@1.35
3.65@3.75
Rock Springs —
Lump .
. 2.15
5.85
Nut .
. 1.60
5.35
Arkansas Anthracite-
Lump .
. 3.40
6.51
Broken sizes .
. 3.65
6.40
Omaha News in Brief.
VV. G. McQuire, sales manager, The Domhoff
& Joyce Company, was calling on the trade this
week.
A. N. Hanna, sales manager, McClemens Coal
Company, Kansas City, Mo., spent a couple of
days with friends in Omaha last week.
A number of the local coal men are going to
attend the association meeting at Minneapolis and
are looking forward to a good time.
President Banning of the Northwestern Coal
Dealers’ Association passed through Omaha last
night on his way to the Minneapolis annual con¬
vention.
Death of Glenn D. Bennett.
In the death of Glenn D. Bennett of Omaha
the coal trade loses one of its brightest and most
energetic young men. Mr. Bennett passed away
Tuesday of this week after an operation on
Wednesday of last week for appendicitis.
Mr. Bennett was very young, taking into con¬
sideration the progress he had made in the busi¬
ness, being only twenty-four years of age. Upon
leaving school, he started in with the Burlington
railorad company, advancing rapidly. He left
the railroad service two and a half years ago
to become principal assistant to J. A. Rockwell,
treasurer and sales manager, Sunderland Brothers
Company, which position he held until the time
of his death.
Toledo Market.
Toledo, Ohio, July 15. — (Special Correspond¬
ence.) — There has been no tangible change in
market conditions here during the past week,
but there is an intangible something which gives
hope to the drooping spirits of local coal dealers.
There does not seem to be any specially better
demand, but the market has a better tone and
there is a decided note of strength in prices,
especially on domestic coal. Lake shipping con¬
tinues as it has been and steam coal is not
moving very well. It is the general belief that
by the middle of August, or at the latest the first
of September, stocking by dealers will have to
begin, and this, it is expected, will give the
much needed impetus.
There is no difference in smokeless conditions.
There is a fair demand with small supply, and
prices are, of course, firm.
F. O. B. F. O. B.
Smokeless — Toledo Mines
Lump and egg . .$.S.4.5 $2.00
Mine run . 2.70 1.2r)
Hocking movement continues light and the
supply does not seem to he unlimited. As a
matter of fact jobbers here say there seems to be
a decided tendency on the part of practically all
operators to leave the coal in the ground rather
than to flood the markets with a lot of coal
which has to he sold at cut rates.
F. O. B.
Hocking — Toledo
3 inch lump . 2.50
l!4-inch lump . 2.40
44->nch lump . 2.35
F. O. B
Mines
1.60
1.40
1,30
Egg . 2.25 1.25
Nut . 2.15 1.16
Mine run . 2.10 1.10
Massillon movement is light and no changes in
prices are noted.
F. O. B. F. O. B.
Massillon — Toledo Mines
Lump . $3.26 $2.50
Washed nut . 3.25 2.50
Pomeroy remains as for some time past, light
as to demand and fairly firm as to price.
F. O. B. F. O. B.
Pomeroy — Toledo Mines
Domestic . $2.60 $1.60
Egg and nut . 2.35 1.35
Kentucky coal has enjoyed a fair demand, but
better conditions are anticipated within a few
weeks, when dealers will begin putting in their
winter supplies. Prices are stronger.
F. O. B.
Kentucky — Toledo
4-ineh lump . $2.90
Egg . 2.50
Nut, pea and slack . open
F. O. B.
Mines
$1.05
1.25
open
West Virginia coal, while not active enough to
brag about, is enjoying a fairly steady demand
and prices appear pretty firm.
Kanawha Gas —
^-inch lump .
1.05
Mine run .
.95
Fairmont —
l}4-inch lump .
1.05
54-inch lump .
Mine run .
. 2.20
.95
. 2.10
.85
F. O. B.
F. O. B.
Kanawha Splint —
Toledo
Mines
4 inch lump .
$1.50
2-inch lump .
1.40
54-inch lump .
1.15
Mine run .
1.00
Pittsburgh No. 8 coals continue to have a
featureless market and prices are not strong.
Pittsburgh No. 8 —
114-inch lump . 2.40 1.40
^-inch lump . 2.20 1.20
Mine run . 2.10 1.10
The Cambridge market is fairly firm as con¬
ditions go right at this season. Prices are rea¬
sonably steady.
F. O. B.
Cambridge — Toledo
Mine run . $2.10
54-inch lump . 2.20
114-inch lump . 2.40
F. O. B.
Mines
$1.10
1.20
1.40
Youghiogheny coal is slow as to demand and
prices remain at about the former levels.
Youghiogheny —
Mine run . 2.45 1.20
54-inch steam lump . 2.66 1.30
Blossburg Smithing —
Prepared size . 3.20 1.75
Lilly smithing, prepared size . 3.20 1.75
Cannel seems to be enjoying some slight re¬
vival and prices are holding pretty close to the
list.
Cannel —
Kentucky Cannel lump . $4.60 $2.75
Pennsylvania Cannel, egg . 3.60 2,15
Pennsylvania Cannel, lump . 4.20 2.75
Ohio Cannel . 3.85 3.00
Toledo News in Brief.
The Toledo and Detroit coal dealers have
determined to repeat the successful social event
of last year and are now preparing for another
picnic to be held early in August. There will
be a meeting of the Toledo committee with a
committee from Detroit in this city Friday
evening to perfect the arrangements.
I. W. Copelin, a retired coal dealer, well known
to the trade throughout this section, and an
inveterate traveler, has brought suit in the fed¬
eral court against the Pennsylvania railroad for
an injury to his leg which occurred some years
ago. Mr. Copelin occupied a Pullman sleeper on
a Pennsylvania train which is alleged to have
had a collision at Woodville, just outside of
Toledo. Mr. Copelin’s leg was injured perma¬
nently, as set forth in his petition, and he asks
for damages to the amount of $10, 000.
Louisville Market.
Louisville, Kv., July 14. — (Special Correspond¬
ence.) — Practically the only influences to be
noticed in this section which can possibly make
for immediate betterment of market conditions
are the incipient labor trouliles in the Straight
Creek field and the arrival of dry weather, which
will make possible the harvesting of the wheat.
y\s yet, there is very little laying in of domestic
coal by tbe country people, owing to the long
period of rainy days, but some demand from this
trade is expected within the next ten days to
make itself manifest. Meanwhile, consumers in
the hirge cities are slightly increasing their calls
on retailers, though the latter are as yet by no
means busy.
In the Straight Creek field, 800 miners are
reported to be on strike because of the refusal
of the Continental Coal Corporation to reinstate
the former wage scale, which was reduced ap¬
proximately ten per cent several months ago,
the men voluntarily agreeing to this reduction.
Together with this labor trouble, several changes
are announced in the management of the com¬
pany and its properties, Mr. M. S. Barker, for¬
merly president of the Straight Creek Coal &
Coke Company, becoming vice-president and gen¬
eral manager in place of White L. Moss, resigned.
Operators consider it unlikely that the labor
trouble at Straight Creek will involve other
mines, in view of the very curtailed run this
section has enjoyed for several months past, but
are inclined to look for serious labor troubles
as soon as business conditions become active
again.
Considerable damage has been done by the
hard and continuous rains in the mountain sec¬
tion of eastern Kentucky during the past several
weeks. A slide in the mountain side at Gaston
several days ago resulted in blocking the main
line of the Louisville & Nashville out of Clover
Fork and shutting off all shipments from six or
seven mines for several days. These unfavorable
weather conditions have also retarded work on
the several railroad extensions which are being
made in Harlan county, and comparatively little
progress has been made as yet on this construc¬
tion work.
There is little change in prices on coal from
either end of the state. With the exception of
one or two mining fields, prices are fairly well
maintained by operators on domestic sizes, though
this policy is resulting in curtailing output to
about two or three days per week. Prices on
high-grade block coal range all the way from
$1.35 to $1.90 per ton, but the best grades of
Jellico and Straight Creek block are being held
at $1.65 per ton and upwards. High-grade nut
and slack is bringing from fifty to sixty cents
f. o. b. mines, with second quality selling around
twenty-five to forty cents per ton. In western
Kentucky there has been an acute shortage of
pea and slack screenings, and shippers with large
contracts for this grade of coal have been com¬
pelled to apply considerable tonnage of eastern
Kentucky nut and slack at a heavy loss.
Indianapolis Trade.
Indianapolis, Ind., July 15. — (Special Corre¬
spondence.) — The demand for steam coal is pick-
ing up gradually in Indiana. Operators say they
notice a slight improvement. It is not sufficient
to cause an advance in prices, but it creates a
more optimistic feeling than has existed for
several months. There are indications that the
steel industries of the state will be under way
soon at capacity. The big industries at Gary are
opening up, which will be a boon to Indiana coal
producers.
Operators say that their contract consumers
are beginning to take a little more coal, so that
the situation is more hopeful than it has been
for some time. There has been an increase lately
in the demand for domestic lump, owing to the
wheat threshing season. The school boards in
many cities and towns are showing a disposition
to buy their coal earlier than usual and there is
considerable movement of domestic on that ac¬
count. Domestic lump, best grades, is selling
at $1.41) to $1.50 f. o. b. mines.
Screenings are in strong demand. Best No. 4
screenings are selling at eighty to ninety cents
a ton at the mines. There is not much egg coal
on the market. It is selling at $1.40 to $1.50
f. o. b. mines for No. 4. While the demand for
steam coal and domestic is picking up a little,
' operators agree that the production for 1915 will
be shorter than it has been for many years.
Many mines are idle: in fact, there has been less
work in the coal field than there has been for
several years.
The following prices are being quoted by the
Indiana wholesalers:
F. O. B.
F. 0. B.
Tiuliana —
M ines.
Indianapolis.
No. 4 mine run .
$1.00(6)1.80
Nos. 5 and 0 mine run .
.. 1.00@1.H)
1.50@1.00
No. 1^-inch steam lump .
.. 1.30@1.40
1. 80 @1.90
Nos. 5 and 0 \'A steam lump..
.. 1.20(®1.30
1.7()@1.80
No. 4 egg .
.. I.40@1..50
1.90(®2.00
No. 4 nut .
1.80@1.90
No. .5 egg .
l.75@l.S5
No. 4 screenings .
. . .80(5) .90
1.30@1.40
Nos. 5 and 0 screenings .
.. .75(@ .80
1.25@1.30
Domestic lump .
.. l.HKgl.SO
1.90(®2.00
No. 1 washed coal .
1.75
2.25
No. 2 washed coal .
l.Of)
2.1.')
Frazil block domestic .
Southern Indiana Field —
No. 5 mine run .
Domestic .
.. LOO @1.05
.. I.40@1.50
2.50(6)2.00
58
THE BLACK DIAMOND
[July 17
New York Trade.
Anthracite Trade Marking Time — Bitum¬
inous Improvement
Proves Slow.
Office of The Black Diamond,
New York, July 15.
The anthracite trade is now passing through
one of the dullest periods of the year. There has
been no snap to business since the Fourth of
July holiday, and production is even more radi¬
cally cut at the present time than was the case
during June, when production fell 814,084 tons as
compared with June, 1914. Shipments for this
June were 5,31(),102 tons, as compared with G,130,-
186 tons for June, 1914. Shipments for the first
half year of 1915 show a loss of 1,350,485 tons,
as compared with shipments for the same period
of 1914. Restriction is not being carried on alone
by the large companies, but individuals, from the
largest of the smallest being forced by the abso¬
lute lack of demand for coal in certain quarters,
are also restricting production to the actual re¬
quirements of their contracts.
The situation in New York harbor at the
moment is rather depressing for those who have
overshipped. And there have been quite a few
of these. A great many boats are loaded with
coal, and some of these are so near the demur-
ra.ge state that shippers are making every effort
to secure purchasers. And to attract purchasers
in the market when no actual spot demand exists,
means to sacrifice prices.
While at the moment the supply of domestic
coal at New York harbor cannot be considered
large in normal times, it is entirely too large for
present requirements, and some radical conces¬
sions are being made on some of the long do¬
mestic sizes.
At the moment the most active size is stove,
less inquiry being shown for egg, while chestnut
is very stagnant. It is generally reputed that most
of the companies are putting a lot of chestnut into
stock, while a considerable tonnage is goin.g west,
where it meets with greater favor than in the
east.
New England reports less inquiry for anthra¬
cite. Line trade in New England has not been
so bad, and it is still taking considerable coal,
though it is not showing the life that existed even
during June. Receipts of anthracite by water
in Boston for June showed a falling off of about
35,000 tons. Eor six months Boston anthracite
receipts by rail and water showed a decrease of
120,115 tons. Shipments to the provinces is no
longer pressing.
Some of the large steam coal users in New
York city are studying the steam size situation
very closely just now. With the short time min¬
ing the supply of the choice grades of the Wyom¬
ing steam coals are not so plentiful at the upper
ports in New York, and consequently some of
the large distributors of these coals are not too
plentifully supplied. At the upper ports No. 1
buckwheat is more plentiful, with a growing scar¬
city developing for choice grades of No. 2. No. 3
is very scarce at the upper ports, most of this
size being shipped on contract, and very little
offering for spot sale. At the lower ports con¬
ditions are quite the reverse, and there are a
great many loaded boats containing all sizes.
Most of the producers of pea, who have no all¬
rail outlet for it, are trying to put surplus in
stock, as there is absolutely no demand for it at
tide at the moment. One hears of concessions
on cargoes of coal running as high as fifty cents
a ton. Some spot prices heard on steam coals
at the lower ports would range from $1.45 up
on No. 3 ; $1.80 on rice and $2.00 up on buckwheat.
The Bituminous Situation.
The improvement in the bituminous trade
talked of in some quarters, is largely one of sen¬
timent and not of actual orders for new busi¬
ness. The most favorable thing that is discussed
now in the bituminous trade is the rather better
movement of coal upon contracts, some large con¬
sumers taking larger quantities than heretofore,
which is enabling certain producers to keep their
operations going on fairly good time. The opera¬
tor that is feeling the dull times most forcibly
at the moment, is the one who has very little
coal under contract, and who has to depend upon
spot orders to keep up his organization. The
local trade is still suffering from the holiday
effects, a great deal of coal having accumulated
around New York ports prior to the holidays,
which is as yet unsold. This makes the spot situ¬
ation very bad, a great many loaded cargoes be¬
ing urged from day to day for sale with buyers
very reluctant.
The one bright spot in the bituminous situation
is the export trade. More than a million tons
were shipped over the three leadin.g Atlantic ports
during the month of June, whereas coal running
from fifteen to twenty percent of this tonnage,
was taken for bunkers for steamers taking export
cargoes. It is rather interesting to note that at
Hampton Roads approximately 1,400,000 tons of
coal were dumped in June, of which 604,000 tons
went into straight export cargoes. Dumping for
exports for the first ten days of the month were
not in as heavy volume as for the same period in
June, but as charterings for the past two weeks
have been very heavy, it is expected that dump¬
ing for the remainder of the month will show
up in good volume.
The slack situation is very quiet. In the Eair-
niont region slack has been offered as low as forty
cents, with forty-five to fifty cents a ton f. o. b.
at the mines being about the prevailing quotation.
In the Reynoldsville section of Pennsylvania, there
is a .good demand for slack, but due to the absence
of orders for lump coal, mines are turning out
slack very freely, and many would be purchasers
of slack are compelled to take run-of-mine coal.
At the New York harbor ports there is an over¬
supply of practically all grades of Pennsylvania
and West Virginia coals that ordinarily come to
this market. Pennsylvania coals can be obtained
at about $2.50 and up at the piers for ordinary
grades, with medium grades at $2.60, and fair
grades at $2.65 to $2.75. The inferior West Vir¬
ginia coals can be obtained in some instances as
low as $2.30.
The Vessel Situation.
The coastwise vessel market is quoted as_ being
firm. Rates are not advanced, seventy-five to
eighty cents being about the prevailing rates from
Hampton Roads to Boston and like rates obtain¬
ing to Sound and further ports. The rates show
a tendency to advance, and a slight increase in the
demand for coal from New England will no doubt
see an advance.
Off shore rates, especially to the Mediterranean,
are some easier. It is stated in some quarters
that a considerable number of tramp steamers are
on their way to America to secure cargoes, and
that the trans-Atlantic rates may be further re¬
duced.
Current rates for freight are as follows :
From Hampton Roads to Boston, seventy-five
to eighty-five cents ; to the Sound, seventy to
eighty cents.
From New York rates to New Haven are thir¬
ty cents. New London, forty cents, and Provi¬
dence and New Bedford, fifty cents; to Boston,
fifty-five to seventy cents; Portsmouth and Port¬
land, fifty-five to seventy cents; to Bangor, .sev¬
enty cents. Harbor rates are from eighteen to
twentv cents.
Prices on gross tons of bituminous coal are:
F. O. B. F. O. B.
Somerset County — Harbor.
Best grades . $2.85 $1.25
Medium grades . 2.60 1.0.->
Ordinary . 2.5,5 1.00
Cambria County —
Best Miller vein . 3.00 l.l^
Cheaper grades . 2.00 i.Oo
Clearfield County —
Best grade . 8.00 l.S.o
Ordinary grades ..; . 2.jn .Ho
Indiana County —
Best grade . 2.80 l.~o
Medium grade . 2.j0 .10
Maryland —
Georges Creek big vein . 3.15 l.uo
West Virginia Splint —
Ordinary grades . 2.40 .vo
Best gas, ^-inch lump . 2.C.)
Best grade, run of mine . 2.65
Glas slack . .4j@.70
New York Trade Briefs.
R. H. Burrows of the New York & Philadel¬
phia Coal & Coke Company, Produce Exchange
building, has returned from a short vacation.
E. J. Skeele, president of the Skeele Coal Com¬
pany, No. 90 West Street, has returned from an
extensive western trip.
Deitrich Denker of the well-known New York
retail firm, Meyer-Denker-Sinram Company, left
last week to visit the Panama-Pacific Exposition
at San Francisco.
C. H. Smith, consulting engineer of the Clinch-
field Coal Corporation, returned to his New York
office this week, after a week’s visit to the oper¬
ations in Virginia.
Olin J. Stephens of Olin J. Stephens, Inc., one
of New York’s best known retail dealers left
about two weeks ago to spend a couple of months
at his summer home on Lake George.
S. D. Fobes, sales mana.ger of the New England
Coal & Coke Company of Boston, was in New
York on Monday en route home after a visit to
the central Pennsylvania bituminous fields.
J. S. W. Holton, of the Sterling Coal Company,
Philadelphia, spent the week end with Colonel R.
B. Baker of the same company, at his home at
Greenwich, Conn., and several interesting rounds
of golf at the Greenwich country club was the
result.
C. E. Bockus, president of the Clinchfield Coal
Corporation, sailed on last Saturday for London.
Mr. Bockus is combining a vacation trip with busi¬
ness. He will consult with mana.ger C. M. Bar¬
nett of the London office, on the European situa¬
tion. It will be recalled that Mr. Barnett went
abroad early in the year to open up a European
agency for the Clinchfield, and it is understood
that he has been making good roadway.
Recent incorporations under the New York
state laws of retail coal companies, are the fol¬
lowing: Valatie Coal & Lumber Corporation,
Valatie, N. Y., with capital stock of $15,000. In¬
corporators are, W. L. Tucker, 135 Broadway,
New York; \V. B. Hutchinson and M. D. O’Don¬
nell. The Sprague & Doughty Company, In¬
wood, N. Y., with a capital stock of $20,000. The
incorporators are : M. P. Doughty, S. Sprague and
Wilbur Dottghty.
A well-known coal man who has followed very
closely the work of digging the Cape Cod canal,
tells The Black Diamond that approximately
175,000 tons of coal were used by the dredges in
digging this waterway. The Cape Cod canal is
now dug to about an average depth of twenty-five
feet, and it will shortly be available for use by
practically all of the coastwise .going steamers,
except perhaps the very large coal carrying ves¬
sels that are now used in the Hampton Roads
and Boston trade.
Every Italian steamship sailing from New York
appears to be loaded to its passenger capacity with
Italians returnin,g to their country to take up
arms in its defense. This bears out the story that
comes from the various mining regions that many
Italians are leaving to enlist in the present war.
Recently one train containing 750 Italian recruits
left Scranton, and another train leaving that city
shortly after, brought 500. Special trains are
leaving this region with such frequency that some
of the operators feel that the most pronounced
shortage of labor will result in the next few
months.
Announcement comes from Clearfield, Pa., that
on the 9th inst., about thirty-five central Penn¬
sylvania operators met in that city to discuss the
new Compensation Act, and to organize in some
way to take care of it when it becomes effective
on January 1, next. B. M. Clark of Punxsutaw-
ney, said there were several ways for the operators
to meet the new burden that this act will place
upon them. They were, that the operators could
go it alone, combine and pool issues so that the
insurance that they paid in would take care of it,
or that the larger operators could combine and
carry their own insurance, leaving the smaller
ones to do as they please. Several other points
in the law were brought out, but nothing definite
was decided on at this meeting. The operators
will hold meetings each month to discuss the law,
and see if they cannot come to some conclusions
that will give the operators material aid in com¬
plying with the provisions of the Compensation
Act.
Marine engineers are said to be watching with
interest the trip of the tug Wyoming, belonging
to the Lehigh Valley Railroad Company’s coal
barge towing fleet, used in towing coal between
New York and New England points, which tug
has recently been equipped with superheaters. It
is said that the Wyoming is the first ocean-going
tug on this side of the Atlantic to be equipped
with superheaters, and that marine engineers
are making a careful study of this device. The
superheater is expected to prove a big coal saver.
It is said that the Wyoming burns twenty tons of
coal every twenty-four hours, and that workiag
300 days out of a year, 6,000 tons of coal are
used annually. If these superheaters do what is
promised for them this amount of coal will be
reduced from ten to twenty-five per cent, while
the saving in dollars and cents has been esti¬
mated at in the neighborhood of $23,000 a year.
Furthermore, it is said, that in addition to the
saving in fuel, that the superheater will increase
the output of power from ten to twenty-five per
cent.
The gross earnings of the Edison Company
of Boston for the fiscal year ended June 30 were
$7,429,124, or $420,836 more than those for the
previous year.
No. 3]
THE BLACK DIAMOND
59
Philadelphia Trade.
A Heavier Business Is Being Done Over
The Piers and Prices Are Firm.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, July 15.
The pier situation here was the leading topic
of interest in this trade during the past week.
Following the “clean up” after the Fourth of
July the shipment to tidewater was lower than
for months, so that this week an increase in
activity was the logical result. While there was
a little spurt upward of a nickel to a dime a
ton on some of the grades, there the price has
rested and at this writing there is plenty of coal
to meet requirements. It would appear that
there is little chance of this betterment holding,
for throughout the trade there is plenty of in¬
formation as to coal moving to Port Richmond
and Greenwich that will place the condition just
where it was the last week in June.
Tonnage, generally, has been a little better than
in the last couple of months. There has been a
disposition on the part of certain of the contract
takers to order a higher percentage of the amount
of coal that they had bargained for. Spot busi¬
ness, also, has shown a little better tone. One
thing that has been reported that has shown a
forecast of later business is the fact that several
contracts that have been “holding fire” for three
or four months have been signed up in the past
ten days.
Reports from the Central Pennsylvania bitumi¬
nous mines has not been cheerful to the opera¬
tors. Too many men are leaving their jobs.
Some of this has been foreign labor that is
heading homeward, but the other feature is the
most alarming. These are men that have been
long settled in the region and who are leaving
because they can only get two and three days’
work a week.
Prices have shown little change and are about
on the same basis as has been quoted for the past
month.
The Anthracite Situation.
Only one of the big operators is working full
time and holds out hope of continuing for an¬
other week. Even the independents have chopped
down on working time to the minimum. Ship¬
ments to the lakes are going forward in a fair
volume, though some, of the hard coal people
given to statistics say that this is way below
that of last year.
Locally, the retail people are giving their time
principally to repair work about their plants and
to cleaning up in preparation to the fall trade.
Summer dullness in the fullest of meaning of
the term has hit hard and deliveries are few.
What little activity there is has been accorded
to egg and stove sizes, while pea and chestnut
are practically neglected; in fact, prices on all
sizes are “soft” and concessions are being made
to move tonnage.
Philadelphia Trade Briefs.
B. R. Lloyd of the Oak Ridge Coal Company
visited with the trade during the mid-week.
W. E. Macurda of the Warfield & Proctor Coal
Company of Boston was a recent visitor to this
city’s trade.
C. P. Burtner of Altoona, Pa., has opened an
office for his company on the tenth floor of the
new Finance building.
John 1. Martin, New York sales agent for
Hetherington & Co., spent three days of the week
on a visit to headquarters.
F. B. Cortright and R. Cornog of Cortright
were away this week, “F. B.” being in New York
and Cornog in New Jersey.
W. K. Kuntz, president of the Operators’ Coal
Mining Company of Johnstown, Pa., was noted
among the visitors of the week.
G. P. Bassett of Pittsburgh, a western Penn¬
sylvania operator, was renewing his acquaintance
with trade friends early in the week.
Arthur Kuppinger, sales agent for the Valley
Smokeless Coal Company, is away on a trip to
Buffalo, Erie and way points this week.
H. C. Barr, general sales agent of the J. S.
Wentz Company, spent Sunday at the seashore
on his return from a trip through the New Eng¬
land states.
John Edmonds, general manager for the Ma-
deria Hill Company, is touring the west with his
family and will visit the Frisco fair before re¬
turning home.
Charles K. Scull’s genial smile was missing
from his usual business haunts this week. He
was attending the annual pow wow of the Ko-
koals in Chicago.
Lucien Hill, eastern sales agent for the Mer¬
chants Coal Company, with headquarters in New
York, was a visitor at the local offices of the
company this week.
W. F. Coale of Cufriberland, Md., passed
through this city on Saturday last while en route
to Atlantic City. “Bill’s” new bonnet was the
envy of some of his friends.
V. E. Goeke, general manager of the Francois
Coal and Coke Company, with headquarters in
Clarksburg, W. Va., spent a day in this city
while on a trip to seaboard points this week.
The fiscal year of the Philadelphia custom
house closes on June 30 and the yearly export of
coal for that of 1915 shows a decrease from 1914.
This year’s tonnage value was $2,133,081, as com¬
pared with $2,189,236 in 1914.
R. R. Ruetlinger and L. G. McCrum of the
W. H. Bradford Company were in Washington
this week going over the details of the supply
of coal for the Federal Hospital for the Insane,
which has been awarded to them.
A number of the southeastern Pennsylvania
coal men who are interested in the lumber busi¬
ness are attending the state convention of the
latter trade, which is held this year at Delaware
Water Gap. Of those noted in passing through
this city were C. Frank Williamson of Media and
Henry Palmer of Langhorn.
The Quemahoning Coal Company suffered
quite a mishap last Thursday when the barge
Mazie kicked up her heels at League Island,
rolled over on her side and slid about 300 tons
of perfectly good coal into the harbor. The
barge had unloaded about 100 tons when the load
shifted and a sunken log that poked a hole in
her bow finished the thing. Some of the coal
has been recovered by suction pipes of the Gov¬
ernment dredges.
The new Chamber of Commerce is putting
forth valiant strides to interest the coal men,
both wholesale and retail, in making an organiza¬
tion among the fuel dealers of sufficient strength
to accomplish something for their own protec¬
tion, good and benefit. For many years it has
been felt that were the wholesalers and retailers
to put their shoulders to the wheel a lot of the
criticism that the dealers are subjected to could
be obviated. About fifty have joined the re¬
juvenated Chamber of Commerce. Tuesday there
was a call for a meeting and six persons re¬
sponded. These, however, made a start in the
right direction. A committee was named to select
representation on the council of the chamber,
those named being Sam Van Dusen, Frank Math¬
ers, F. B. Cortright, Mr. Davis of the Lehigh
Coal & Navigation Company, and Louis Rafetto.
Anthracite Tax Figures.
Philadelphia, July 14. — Printed forms for use
in reporting the production of coal in the anthra¬
cite regions, which will come under the tax im¬
posed by the legislature under the new tax law
of 1915, are being received by the various oper¬
ating companies of the state. The blanks provide
for a monthly report to be made on the 15th
and demand is made for the tonnage mined,
tonnage prepared for the markets and tonnage
used in preparing coal for the market. The old
tax law provided for an annual report. Failure
to comply with the law means an infliction of a
ten per cent penalty.
Nc'w England Trade
Boston, July 15. — {Special Correspondence.) —
The general coal situation in New England seems
to have slowed up somewhat during the past
week. Business is by no means dull, but new
bookings by a number of firms have shown quite
a shrinkage. July is usually a quiet, month here,
but this year it started off fairly active and the
only reason dealers can advance for the present
condition is the almost continuous rainy weather.
It is generally believed that with seasonable
weather there will be a revival of buying.
The falling off in business is more noticeable
in anthracite than in bituminous. Yet some
wholesale anhracite houses claim their trade has
held up well to all-rail points and is perhaps a
shade better on the cargo end. It is a fact,
nevertheless, that anthracite has been offered
here at concessions in order to clean up cargoes
and prevent embargoes. The usual asking price
for stove and egg at Mystic Wharf is $6.10 per
ton and for nut $6.35, but some of each grade
has been sold at concessions of five to ten cents.
It is very doubtful, however, if any concession
could be obtained on large amounts. At Ports¬
mouth prices have ruled ten cents per ton more
than at Mystic Wharf, and at Providence ten
cents' a ton less. Alongside Boston Harbor prices
are unchanged.
The demand during the past week has run
largely to stove and nut. Egg is not as active
as it has been recently, but the supply is not
large, so there is little likelihood of the market
weakening noticeably. Pea is moving slowly,
and buckwheats are almost lifeless, the latter
still being quoted on a basis of $1.80 per ton for
No. 3, f. o. b. New York. St John, Halifax and
other points in the Provinces are placing more
and more orders here for anthracite each week,
but undoubtedly would do more if freight rates
were cheaper.
Southern contract bituminous is arriving more
freely, but local firms in a great many instances
report a slight falling off in new business. There
are, however, quite a number of consumers who
have not covered and some of them are impor¬
tant factors in the market, concerns like the
Narragansett Electric Light Company. Shippers
say there is plenty of New River and Pocahontas
at Hampton Roads ports, notwithstanding the
recent activity in the off-shore business, and that
shippers are doing more or less price-cutting in
order to get business. On the other hand, all¬
rail Pennsylvania bituminous is in better demand.
Prices for this coal are generally quoted from
ninety cents to $1.50 per ton on cars at the mines,
but undoubtedly have been bought recently at
concessions. Off-shore business in Pennsylvania
is light. The spot market for New River, Poca¬
hontas and Georges Creek at Mystic Wharf is
practically dead. We hear of no sales being made
at that point during the past week.
The southern marine freight rate market is
more active, but not enough so to warrant an
advance in rates. The general asking price for
space between Hampton Roads ports and Boston
is seventy-five to eighty cents per ton, and from
Baltimore seven to ten cents a ton more. The
anthracite rate market is strong and unchanged
on a basis of fifty to fifty-five cents per ton from
New York to Boston. Anthracite rates from
New York to the Provinces usually range from
$1 to $1.50 per ton, and in a few instances even
more has been paid by shippers.
Boston Trade Notes.
L. C. Pratt, formerly with the Providence Coal
Company, is now with the E. B. Townsend Coal
Company.
George McConnell has succeeded William J.
Osgood as traveling salesman for Dickson,
Eddy’s Boston office.
Joseph Richardson, formerly with the E. B.
Townsend Coal Company, has become associated
with Percy Heilner & Sons, Inc.
Patrick J. Leonard, a coal dealer of Chelsea,
was recently fined $20 for assault on a Mr. and
Mrs. Lenney. He appealed and was held under
$200 bonds for the Superior Court.
The June receipts of anthracite at Boston
amounted to 147,943 tons, bringing the total re¬
ceipts for the first three months of the coal year
up to 458,768, or 114,772 tons less than for the
same period last year. The total receipts of
bituminous for the first three months of the coal
year were 1,253,167 tons, or 69,069 less than those
for the same time in 1914. Following are the
receipts of anthracite and bituminous for June,
and for the six months ended June 30, together
with comparisons :
ANTHRACITE.
June — 1915 1914 Decrease
By sea, domestic . 134,485 169,586 35,101
By sea, foreign . . .
By rail . 13,458 13,678 220
Total . 147,943
Jan. 1 to June 30 —
By sea, domestic . 709,937
By sea, foreign .
By rail . 89,900
183,264 35,321
842,088 132,151
77,864 *12,6.'i6
Total .
June —
By sea, domestic
By sea, foreign .
By rail .
. 799,839
BITUMINOUS.
1915
. 360,694
. 19,538
. 5,531
919,952 120,115
1914 Decrease
396,646 35,952
. *19,538
2,001 *3,530
Total
Jan. 1
to June 30 —
_ 385,763
398,647
12,884
By sea,
domestic .
_ 2,420,057
2,491,734
71,677
By sea.
foreign .
_ 237,069
90,812
*146,257
By rail
_ 35,564
32,393
*3,171
Total
_ 2,692,690
2,614,939
*77,751
60
THE BLACK DIAMOND
[July 17
Buffalo Trade.
Buffalo, X. Y., July 15. — The shipments of an¬
thracite by lake have begun to drop off consider¬
ably and there is not the demand of earlier in the
season. This is no doubt but a temporary quiet,
for everybody is likely to want coal at the other
end of the lakes this fall, in view of the labor ad¬
justment necessary between operators and miners
next spring. The effort of shippers will be to get
as much coal forward as possible before the end
of the season, so that any quiet period this sum¬
mer is expected to be brief.
For the past week the lake shipments were
114,787 tons, which went to only four ports, as
follows : Duluth-Superior, 68,587 ; Chicago, 24,800 ;
Milwaukee, 13,500 ; Sheboygan, 7,900. The smaller
ports are not taking much coal at present and
some of them are said to be already fairly well
supplied.
The demand for anthracite from dealers is on
a small scale, though some of the independent
companies are reporting a little better business
than they had a few weeks ago. But a large num¬
ber of dealers have all the coal they need for a
long time to come and consumers are not takirtg
supplies to any extent. The report of poor collec¬
tions is general and until dealers see the money
they are not inclined to put out much coal.
Bituminous trade is showing a light improve¬
ment, though the volume of business is much be¬
low normal. Optimistic reports are being received
from the steel trade, and plants are now running
close to capacity, largely on account of the filling
of war orders. Some concerns are being oper¬
ated night and day. On the other hand many
others are doing little or nothing, and the domes¬
tic manufacturing trade shows little improvement.
There are more optimists than a short vvhile ago
and most everybody looks for a good improve¬
ment this fall, but few are predicting any change
for the better before that time.
Coal prices are much depressed, with the prin¬
cipal weakness in slack, which is selling at 20c
or so below what it has in some previous years
at this season. The supply of slack is apparently
abundant, while there is not much being called
for. Lack of the ordinary demand from Cana¬
dian factories and other plants is largely respon¬
sible for the weakness of slack. Contract prices
are considerably better than those for spot de¬
livery, but nevertheless are not what they ought
to be at this time.
Buffalo Trade Briefs.
W. C. Blodgett, sales agent of Dickson & Eddy,
has returned from a business trip to Chicago.
F. K. Robinson of the Black Diamond Coal Co.,
Toronto, was a visitor here this week while on a
brief vacation.
W. F. McClurg, president of the McClurg-Hels-
don Coal Co., is taking a week’s trip through the
east on business.
H. L. Findlay, general sales manager of the
Youghiogheny & Ohio Coal Co., visited the local
office of the company a few days ago.
Coal operators noting the Supreme Court de¬
cision regarding compulsory furnishing of cars
to mines as needed, say that cars have been in
ample supply in Pennsylvania bituminous regions
all this year.
George D. Rowland of the Richland Coal Co.,
Wheeling, W. Va., and J. M. Gates, representing
J. Tatnall Lea, Philadelphia, were amon.g callers
upon the bituminous coal trade during the past
week.
The war orders of a number of local plants are
keeping them unusually busy at this time. The
Pierce-Arrow Motor Car Co. is well filled up with
orders and is running a large force. The Lacka¬
wanna Steel Co. is said to have over 5,000 men
now employed. The Curtiss Aeroplane Co. is
keeping its local plant operating actively and for¬
eign orders for machines are said to be numerous.
The Lehigh Valley dock is making good prog¬
ress with its work of shifting the old wooden
trestle over to a steel car dump, which is to handle
box cars rapidly in future. The lake shipments
were shut down for some time last week to give
way to this new work, but it was found that the
contractors were not ready to take it up yet. The
dump is expected to be ready in September.
The annual coal men’s outing, known as the
Roberts Bros.’ picnic, will be held next Saturday.
This notable event in coal circles has been given
for over twenty years and those who play the
hosts on the occasion are Eu.gene C. and William
T. Roberts of the Buffalo trade, and Clark T.
Roberts of Chicago. Several hundred invitations
have been sent out to coal and railroad men
around the country, who are associated through
personal and business ties with the Roberts Bros.,
and from present indications the attendance will
be at least 225. There has been talk that this
will be the last annual picnic and excursion, and
if this turns out to be true it will be a disappoint¬
ment to many coal men.
Baltimore Trade.
Baltimore, July 15. — {Special Correspondence.)
— While trade continues flat, with the exception
of war order business and a heavy export coal
movement, there are many evidences that there
is a strong underlying feeling of confidence in
the future. This is shown especially by the fact
that many new coal concerns are forming from
time to time, and that old operations are being
planned for extension. In West Virginia, where
prices for coal at present are frequently below
actual production cost, arrangements are being
pushed to increase the output of many properties
with the return of prosperity to the trade.
The export trade through this port has fallen
off somewhat. As against some previous weeks
of shipment of from 70,000 to 80,000 tons, the
movement to vessel-holds here last week ran
less than 57,000 tons. If maintained, this would
mean a total month’s loading of not much more
than 100,000 tons, as against more than 300,000
for June and about 200,000 for May.
The price of fuel to the trade at the mines
continues low and steady. Much cheap coal is
offering by mines that are now well enough
covered by contract to take care of their produc¬
tion. There is no heavy demand, even at the
low price schedule that exists at present.
Prices to the trade at the mines may be quoted
as follows :
F. O. B.
F. O. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
$2.23@2.2S
Run of mine .
. 70@ .80
2.13@2.23
Slack .
. 45@ .50
1.88@1.93
Somerset — -
Best .
. 1.25
2.43
Good .
. 1.10
2.28
W. M. R. R.—
Freeport .
. 75@ .80
1.93@1.98
B. & O.—
Freeport .
. 75@ .80
1.93@1.9S
P. R. R.—
Best South Fork .
. 1.35
2.53
Miller Vein .
. 1.10
2.78
Ordinary .
. .90
2.08
The hard coal men are marking time. .\s an
evidence of slowness of collections for some time
past, not a few of the coal dealers here report
settlement of accounts only before the placing
of orders for next season. This has been one
factor in the short ordering for household use
the past spring. That the hard coal dealers will
be very busy in September and October in house¬
hold supply seems assured by the fact that a
much larger proportion of cellars are empty than
is usually the case in July. The steam coal call
is light along with demand for all classes of
industrial fuels.
.^.s indicating a faith in the future, some time
ago it was mentioned that not only was the Con¬
solidation Coal Company carrying out additional
development along both the B. & O. and Western
Maryland railroad connections, but that the Davis
Coal & Coke Company was working out new
development plans. Some quite recent develop-'
ments to be mentioned are the formation of the
Williams-Pocahontas Coal Company of West
Virginia, with a capital of $50,000; the incorpora¬
tion of the May Dag Coal Company of Grafton,
W. Va., with $25,000 capital; the incorporation
of the Holly-Elk Coal Company of West Vir¬
ginia, with a capital of $100,000, Colonel John T.
McGraw being prominently identified with this
move ; and the formation of a concern to be
known as the Coal River Colliery Company, with
a capital stock of $50,000. A Virginia incorpora¬
tion recently reported here was the Wallin Coal
Corporation of Pulaski, Va., with $10,000 capital.
The Mullens Smokeless Coal Company last week
made its first shipment from its new operations
near Mullens, W. Va.
Fourteen charters for foreign loading were
recorded here last week. The range covered both
South and Central America and Europe. The
Italian demand was not as heavy as in the past,
but France was noted as quite a heavy taker of
this arrangement for fuel.
William H. Gorman, for many years a figure
in the coal trade of Maryland, died the past
week as the result of a stroke of paralysis. Mr.
Gorman, who was a brother of the late Senator
A. P. Gorman, was seventy-one years of age.
He was president of the Cumberland Coal Com¬
pany, which he organized in 1885 ; of the Gorman
Coal & Coke Co. of West Virginia, and of the
Piedmont Mining Company.
Birmingham Trade.
Birmingh.am, Ala., July 15. — {Special Corre¬
spondence.) — In some coals there is a feeling of
better conditions. At some places the trade is
better, while at others it is still depressing. The
Tennessee Company gave work to nearly 1,400
men six days last week, working both day and
night, and five days the week before. The output
at this place is about normal.
More steam and coking coal is being gotten out
now than for some time, but most of this noted
improvement is with iron-making companies
which mine their own coal.
Such good showings do not exist with com¬
mercial companies which mine steam and coking
coal. Large contracts have been placed within
the past thirty days, but little is entirely new
business. In most cases prices were very close
and the margin of profit is very small. Some
of this shifting of contracts is caused by both
price and difference of coal. In some cases prices
were lowered ; in others a little higher than those
of last year.
The Sloss-Sheffield Company got the contract
for nearly 200,000 tons of steam coal from New
Orleans Street Railway, Light & Power Com¬
pany the past week.
The domestic coal situation has not shown any
improvement. Blacksmith coal is still doing a
fairly good share of business.
Prices quoted, but varied
some :
F. O. B.
F. 0. B.
Bibb County Domestic Coal —
Mine
Birmingham
Cahaba fancy lump .
$2.35
$2.65
Cahaba No. 2 .
2.10
2.40
Jefferson County —
Pratt fancy steam lump .
, 1.70
2.10
(Furnished by T. C. I.)
Pratt mine run .
. .90@1.15
Frt. rate 30c
Jefferson seam, steam coal .
Black creek steam .
, 1.15@1.25
, 1.25@1.55
Frt. rate 30c
Walker County —
Horse Creek steam mine run . 90@1.10
Carbon Hill lump domestic . 1.60@2.00
Most all coals based on this classification.
Frt. rate 40c
No stable prices, but these serve as basis from which
prices vary either up or down.
Blacksmith calo, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
Birmingham News.
Monro B. Lanier, manager of sales, Monro-
Warrior Coal & Coke Company, Birmingham,
Ala., spent several days in Louisville, being con¬
fined to his room at the Seelbach hotel, owing to
indisposition.
Work has begun at the plants of the Wood¬
ward Iron Company on the erection of a benzol
plant. This will be the third plant of its kind in
the Birmingham district. The plant, when complet¬
ed early in September, will have a daily capacity
of 3,000 gallons. The work was started a few
days ago without formal announcement from
officials of the company. The plant will be ad¬
joining the by-product plant. The benzol plant
of the Thomas A. Edison Company is in opera¬
tion at M’oodward and is now turning out daily
2,000 gallons of the product. The operation of
the Woodward plant will be entirely separate
and distinct from that of the Edison company.
That coal can be carried down the river to
Mobile from the mine at Maxine at a cost of
fifty cents per ton — just half the rail cost — and
can be loaded on ships at $1 per ton less than
the present cost, is the statement made by offi¬
cials of the Pratt Consolidated Coal Company,
who last week sent their first shipment of coal
by water, chiefly for the purpose of ascertaining
the cost of water transportation. The results
were highly satisfactory to the company. This
week the Pratt company will supply a ship at
Mobile with 500 tons of coal, which will be the
first coal carried down the river for use on an
ocean-going vessel.
The annual outing and institute of the Ala¬
bama Coal Operators’ Association Saturday at
Edgewater and Bayview was a great success.
About 300 persons were in attendance and all
enjoyed immensely the day’s program. In addi¬
tion to an excellent lunch served at Bayview
about 1 o’clock, a program that included many
interesting technical subjects was carried out.
A dust explosion by black powder and the
results from the use of permissible explosives
formed an interested demonstration. The dem¬
onstration was made by E. B. Sutton of the
West End station of the United States Bureau
of Mines, and proved highly valuable. The
morning session, held at the Edgewater audi¬
torium, was devoted to the reading of special
papers and demonstrations by moving pictures.
Following the lunch at Bayview, the commissary
plant and town at Edgewater were inspected
and then the reading of papers continued.
Vol. 55. No. 4
CHICAGO
COLUMBUS
JULY 24, 1915
NBW YORK
PITTSBURGH
$3.00 Per Year
Traffic Bureau Formed at Minneapolis.
The Northwestern Retail Coal Dealers’ Asso¬
ciation, after struggling with the matter for
months, decided at its meeting last week that
it will start afresh under a new name. In con¬
sequence, it assumes at once the title “The North¬
western Traffic Bureau.’’
The change of name does not mean that the
old association failed and that the officers are
trying to revive it by a new disguise. It means
nothing of the sort.
The change does mean that the officers, after
looking the facts in the face, admit that the old
idea of an association is obsolete because no
longer responsive to conditions. They know that
a newer and better idea has come into existence.
It is the adoption of the new idea which is con¬
veyed by the selection of the new name.
Candidly, the word association, as formerly
used, meant almost anything. Its use today brings
up too many recollections of other days when
business was not done on the plane that it is now.
Then, the association was either a somnolent club
or a sort of polite and gentlemanly sandbag. Men
went into most of them not because they hoped
for anything much but because they thought they
should do what others did. The secretary in
those days did not hold his office because of any
especial capabilities along any line, but because
the office had to have some sort of a human ani¬
mal in it to fill the chair and to write the reports.
If the association, in those days, drifted along
and led a purposeless and a sort of a begging
existence, it was about all that was expected of
it. If it ever became vitalized its purpose in life
was to fix prices and thus to undertake a little
adventure with the law.
It is such practices and such memories that
the old word association recalls to many men
now doing the coal business. Such an unhallowed
inheritance is not valuable to a trade organiza¬
tion.
In the last decade conditions have changed in
the coal trade and everywhere. The public is
through for all time with beggars and begging
industries. The railroad presidents have in the
last ten years forever sickened the American peo¬
ple by their humiliating and nauseating pleas
which were as devoid of reason as they were of
dignity. The coal trade, after witnessing that
spectacle, knows that it will do no good to get
upon one’s haunches and beg. Rather in dignity
and firmness, it is prepared to get what is coming
to it as does any man who stands on his rights.
By the same token, coal trade organizations are
no longer beggars. Nobody is asked any more
to “kick in’’ to support the coal trade body. The
whole idea of “kicking in,” due to union labor
grafting, has become as obnoxious as begging. In¬
stead, a new word is on the tongue of the public
and on the tongue of the coal trade. That word
is “serve.” Today no coal company hopes to suc¬
ceed if it cannot serve. No coal organization
hopes to get any support unless it can serve.
Taking these general precepts into considera¬
tion, the coal men of the northwest have decided
to have done with the old word “association” with
its unhallowed memories and to adopt a name
and a purpose both of which are in keeping with
the times.
That suggested the name — since the railroads
still cling to the past and make men fight for
what is due them — the Northwestern Traffic
Bureau. This means that in future the organi¬
zation will do for the northwestern trade what
the individual retailers can not do for themselves
and what they cannot afford to hire experts to
do. That is, the individual retailers cannot hope
to hire a traffice manager, but all of the retailers
of one state or one territory can afford to hire
a first-class man for that job. The same is true
of an attorney and other experts having to do
with the annoying technical questions arising
from the purchase, transportation and sale of
coal.
Particularly is this true of the many important
matters coming before the various legislatures and
congress, The retailer unskilled and alone can-
Old Northwestern Association Will Give
Place to a New Body Designed to Give
Service — Details of the Plan Outlined by
H. L. Laird.
not go before these political bodies and present a
consistent story which will convince. He has
neither the skill nor the facts. The expert who
have been fighting many battles for many con¬
cerns on many points can do that very easily,
because he has both the skill and the facts.
All these things considered, the Northwestern
association decided to change its name and its
purpose and then to hire experts who can carry
New Officers Chosen.
President — A. L. Havens, Havens Coal
Company, Omaha.
Vice-President — C. A. Cruikshank,
Hannibal, Mo.
Directors — H. T. Folsom, Nebraska;
Wm. Hardman, Kansas; C. A. Cruik¬
shank, Missouri; F. K. Sullivan, Min¬
nesota; J. A. Young, Iowa; C. T.
Rourke, South Dakota; Harry Alsop,
North Dakota; Walter Linton, at large.
the larger plans into execution. This makes the
new movement interesting not only from the
point of the candor displayed but from the point
of view of the new purpose adopted.
The annual meeting of the northwestern re¬
tailers, which was held at Minneapolis last week,
adopted this new program and directed the offi¬
cers to start to work on the new bureau. It was
a most interesting gathering of coal men. There
were present about 225 coal men, most of whom
were retail dealers. The meeting did not take
the form of a trade convention. Rather it was a
business meeting of business men. They came
together not for a frolic, with a little educa¬
tion and a little business on the side, but to do
business. They did their business first. When
that was done, they found a little time for amuse¬
ment. Thus the big thing' was the business ses¬
sion and the theme of interest was the discussion
of this new plan that was uppermost all the time.
Tersely put, the old association retires and
H. L, Laird.
gives place to the new bureau. This is to be an
incorporated body with capital stock. But it is
not organized for the purpose of making a profit.
On the contrary, its purpose is to serve the deal¬
ers in traffic matters and by disseminating infor¬
mation which the officers believe cannot be given
in any other way.
The shares of stock will sell to retail coal mer¬
chants only for $10. In addition, the sharehold¬
ers wdl be expected to sign a contract with the
bureau to subscribe to the bureau’s service for a
term of years. This will cost $10 per year, the
annual payment being part of the lump sum stip¬
ulated in the contract.
In detail documents prepared and sent out by
H. L. Laird, the secretary, tell the story. They
are printed herewith to elaborate the points al¬
ready brought out.
Announcing the Plan.
Upon opening the meeting on Thursday, July
15, it was bare of any tedious and meaningless
speech making. Secretary Laird went directly
to the big purpose. This he outlined in part as
follows :
“It is necessary for secretaries of industrial and
mercantile associations to make a report each
year as to the condition of the organization, in¬
cluding therein suggestions for the future. The
annual meeting this year was called to consider
the reorganization of the Northwestern Retail
Coal Dealers’ Association.
“For eighteen months the question of the re¬
organization of the Northwestern Association
has been under consideration. The board of di¬
rectors has considered the question for months,
with the result that a letter was sent out on
June 17, giving detailed information.”
In part, that letter follows :
“I have had up with the board of directors for
some time the advisability of holding an annual
meeting or convention of the Northwestern Re¬
tail Coal Dealers’ Association this year. It has
just been decided, after due consideration, that
an annual meeting be held at Minneapolis on
Thursday and Friday, July 15 and 16.
“The idea of this meeting is to make it a
business session. The first day, from 10:00 until
12 :30 we are to take up matters pertaining to
association work and outline a future campaign,
the problem of financing the reorganization, etc. ;
2:00 p. m. until 5:00 p. m.
“On the second day, 10 :00 a. m. sharp, there
will be a finishing up of the business session and
election of officers, and at 2:00 p. m. the dealers
will be placed in charge of the entertainment com¬
mittee for the balance of the day.
“The reorganization plan, which has finally
been mapped out, is more fully explained by the
attached statement.
“It is true that our association and other kin¬
dred organizations have been running from hand
to mouth, with very little money to accomplish
the big things that we were after. The result
has been that we have been hampered in our
work by want of funds. When the writer came
in here as secretary of the Northwestern Asso¬
ciation five years ago the first of last month, we
had a debt of $5,300. This has all been paid.
But it costs us more to run everything nowadays
than it did five years ago — stationery, printing,
office rent, clerical hire, light, etc. The only
thing that has not been raised on us is United
States postage, but our correspondence has in¬
creased in volume twenty-five per cent. So we
must have more money to prosecute our broad
line of work if we are to be successful.
“The Northwestern Association is charging less
in the way of annual dues than any association
in the country. The western associations in the
coal business charge from $5.00 to $25.00 per year
according to the population of the town, and they
have ninety per cent of the trade as members,
while in this part of the territory we have never
62
THE BLACK DIAMOND
[July 24
had over twenty-five per cent of the established
dealers support the work.”
Outline of Organization.
Of the many documents presented to the meet¬
ing, the least convincing was the plan of organi¬
zation of the Northwestern Retail Coal Dealers’
Association. In full it follows :
“1. Legal Department.
“2. Traffic Department.
“3. Information Department.
“4. Credit Department.
“5. Advertising and Sales Department.
“The Legal Department would take care of any
legal counsel or advice that might arise in con¬
nection with subscribers’ business ; it would in¬
volve correspondent attorneys under contract to
prosecute any cases of the organization at mini¬
mum fees and percentage in every county in the
states covered by the bureau.
“The Traffic Department would involve the
handling of cases before the Interstate Commerce
Commission, state board of railroad commis¬
sioners, claims for reparation before the Inter¬
state Commerce Commission ; handling of rail¬
road claims of all character, such as overcharge,
shortage, damage, demurrage, etc., and in con¬
nection with the legal department the service of
an attorney in each county in the state represent¬
ing the bureau.
“The Information Department would involve
the gathering and disseminating of any and all
lawful information pertaining to the coal trade
or to retail merchants in general, the publication
of a monthly bulletin covering traffic rriatters, de¬
cisions of the courts ; instructions as to how to
handle business in connection with the carriers
from the individual firm or corporation stand¬
point.
“The Credit Department would involve the
collection of information relating to the financial
standing of the retail coal dealers throughout the
territory covered by the bureau, and would be
given out to the wholesale interests at their re¬
quest, but only to those subscribing for the service.
“The Advertising and Sales Department would
be placed in charge of a high-class man who
would, through the bulletin monthly, disseminate
to the members subscribing for the service infor¬
mation showing how to advertise country mer¬
chandise, and a course in salesmanship would be
promulgated and extra copies of each article fur¬
nished the members.
“It is the idea to employ three high-class field
men. These men could be used in soliciting mem¬
bers and for inspection of methods and facilities
employed on the part of the carriers at the docks
and at the mines, particularly at producing points,
and in the winter time when car shortage usually
occurs these men could be used for the purpose
of tracing empty cars and facilitating movement
of empties back to the docks and the mines for
loading purposes to fill orders promptly that are
placed by members of the bureau.”
Articles of Incorporation.
Because it conveys to the members of that or¬
ganization an idea of what is intended and be¬
cause it may prove useful to other associations,
there is printed here a document called “Certifi¬
cate of Incorporation of Northwestern Traffic
Bureau.” It follows :
We, the undersigned, for the purpose of form¬
ing a corporation under and pursuant to the pro¬
visions of Chapter fifty-eight (58) Revised Laws
of Minnesota for 1905, and any amendments
thereof, hereby associate ourselves as a body cor¬
porate, and do hereby adopt the following Cer¬
tificate of Incorporation.
Article 1.
The name of this corporation shall be North¬
western Traffic Bureau.
Article 11.
The general nature of the business of this cor¬
poration shall be to conduct a general traffic, audit
and adjustment business, route shipments, ascer¬
tain and quote rates, classifications and the like,
procure legal advice of a traffic and other nature,
conduct rate investigations, proceedings, hearings
and the like; procure suspensions of proposed
advances of rates, change of classification, rules,
transit privileges and the like, audit expense bills,
procure the refund of overcharges ; investigate
traffic conditions and institute any and all proceed¬
ings under the various state and interstate com¬
merce acts, and generally act as Traffic Manager
and counsel in any and all ways practicable to its
subscribers and those to whom it may stand in
the relation of advisor and counsel.
Article III.
The principal place of transacting the business
of this corporation shall be at the city of Minne¬
apolis, County of Hennepin, State of Minnesota.
Article IV.
The time for the commencement of this cor¬
poration shall be . . and the period
of its duration shall be thirty years.
Article V.
The names and places of residence of the per¬
sons forming this corporation are .
. of .
of . . etc.
Article VI.
The management of this corporation shall be
vested in a board of directors composed of not
less than three nor more than nine persons. The
names and addresses of the first board of di¬
rectors are :
The first officers of this corporation shall be.
president . ; vice-president,
. ; secretary, . ;
treasurer, . All of the above
named officers and directors shall hold their re¬
spective offices aforesaid until the next annual
meeting of the corporation to be held .
. 19.., at which time, and annually
thereafter, a board of directors shall be elected
from and by the stockholders of this corpora¬
tion. The annual meeting of the stockholders of
this corporation shall be held at its principal
place of business on the . in each
year. Immediately after the election of directors
or as soon thereafter as practicable, the directors
shall meet and elect from their number a presi¬
dent, vice-president, secretary and treasurer. Any
office except that of president and vice-president
may be held by one person. The directors and
officers of this corporation shall hold their re¬
spective offices until their successors have been
duly elected and entered upon the discharge of
their duties. The first meeting of the stockhold¬
ers and of the board of directors shall be held
on the . day of . 19. ..
Article VII.
The amount of the capital stock of this cor¬
poration shall be....... . . . dollars, all
of which shall be paid in money, in such manner
and at such times, and in such amounts as the
board of directors shall order. The capital stock
shall be divided into . shares of
the par value of ten ($10.00) dollars each.
(Signatures) .
(Acknowledgment) .
Articles of Agreement.
The vital part of the new bureau is the docu¬
ment styled the “Articles of Agreement.” This
binds the bureau to provide and the retailer to
buy service of a given character. The exact
wording follows :
“Articles of agreement by and between the
Northwestern Traffic Bureau, party of the first
part, and . party of the
second part,
“Whereby, the party of the first part, in con¬
sideration of . dollars, payable one-
fifth annually in advance, agrees to perform for
the party of the second part for the term of
■ . years from date hereof, the follow¬
ing services :
“1. Giving the most practicable and lowest
through rate or rates on any commodity, on
application.
“2. Giving the best and most practicable route
for shipment of merchandise to or from place of
business of second party upon application.
“3. Giving the best and most practicable route
for shipment of merchandise from points from
which second party purchases goods, to points at
which he is engaged in business.
“4. To examine classification of all commodi¬
ties submitted by the party of the second part
and to verify same.
“5. To prepare and furnish to second party
one route index from and to points supplied by
first party, which route index shall show the
rates from and to all points named in the list to
be furnished by the second party, said route index
to be checked and kept up to date by the North¬
western Traffic Bureau.
“6. To furnish to said second party under the
provisions of this contract all office legal advice
upon all matters of business character if sub¬
mitted by second party to the Northwestern Traf¬
fic Bureau’s legal department during the life of
this contract, including advice upon banking law,
negotiable instruments, corporation laws, part¬
nerships, contracts, bankruptcy, executions, at¬
tachments, mechanics’ liens, torts, damages, pro¬
bate law, wills, chancery, et al., also traffic advice
relative to rates, classification, exceptions, demur¬
rage, routing or storage.
“7. To give counsel and advice showing the
course that must be pursued in order to secure
reduced or proper classification on any com¬
modity upon request.
“8. To audit freight bills and express receipts
for overcharge in rate, weight, classification,
storage or demurrage and to adjust and en¬
deavor to collect all such claims as well as claims
for loss and damage, on the following terms :
Accounts of $100 and over . 10 per cent
Accounts of $25 to $100 . 12 per cent
Accounts of $25 or less . 15 per cen‘
Except current claims.
the party of the first part to pay all expenses in
connection therewith in collection of the railroad
claims.
“9. To trace delayed or lost shipments upon
Northwestern Traffic Bureau Convention.
No. 4]
THE BLACK DIAMOND
63
request, to order cars of proper dimensions upon
request and supervise their prompt delivery for
loading.
“10. To furnish second party a copy of all
claims as soon as presented.
“11. Party of the first part is to apply to the
benefit of the business of the second party, when¬
ever and wherever possible, any ruling of the
Interstate Commerce Commission or any state
commission and to watch conditions closely and
take up traffic questions in which the members
of this bureau may be interested, and appear be¬
fore any state commission or the Interstate Com¬
merce Commission in behalf of its members on
general traffic matters.
“The above terms and commissions shall be
the only charges to be made for service rendered
under this contract, and the second party will not
be required at any time to pay any attorneys’ fees
or costs of any nature whatsoever, except in spe¬
cial cases when same shall be incurred in the
handling of matters requiring extra legal service
in drafting or drawing contracts, commencing ac¬
tions or proceedings, in appearances before the
Interstate Commerce Commission, state commis¬
sions, classification committees, or courts of law,
in which cases satisfactory terms shall be agreed
upon in advance between party of the second
part and our legal department.
“It is agreed between the parties hereto that in
case the second party sells or transfers his busi¬
ness during the life of this agreement, the whole
amount called for in this contract shall at once
become due and payable, but contract may be
transferred upon notice to second party.
“Party of the second part hereby appoints the
Northwestern Traffic Bureau, attorney-in-fact,
for . and in . name,
place and stead, in all matters connected with the
presentation of claims for overcharge, loss and
damage, and receiving refund thereon to the same
effects as . might do.
“Signed, sealed and delivered this . day
of . 19. ..
“Northwestern Traffic Bureau.
“Per .
“Sec’y-Treas.
“Party of the first part.
ft
“Party of the second part.”
Advantages Summarized.
Having presented the matter in some detail.
Secretary Laird summed up the advantages to
the dealer in the graphic manner indicated by the
following :
“You would put another man to work in your
office if it ‘meant money to you, would you not?
Of course you would; that is good business. A
good office boy is worth $40.00 per month, or you
would not keep him. A good clerk is worth
$100.00 per month, or you would not employ him.
Let us put another man in your office that will
make you money. The cost is small in compari¬
son with what it will save you in consideration of
service performed.
“Do you know that the various railroads in the
country file more than 5,000 rate changes every
week with the Interstate Commerce Commission?
“Do you know that some of these rates which
you are using may be changed this week and
you may not have any information?
“Do you know that the same rates used by
your competitors may be reduced by the railroads
and enable your competitors to land some of
your business before you learn of the change?
“The railroads are well organized with efficient
officers to look after their business. Capitaliza¬
tion of the railroads in the United States
amounts to something like over eight billion dol¬
lars and constitutes the greatest combined finan¬
cial power in existence today. Every day proves
conclusively that the railroads always work to¬
gether to a greater extent than any other like
interest. The business man is often amazed at
what is accomplished on the part of the railroad
companies. He does not take into consideration
the cause making possible the success of these
large corporations in their undertakings. The av¬
erage business man will scrutinize his household
bills — gas, electric light, coal, etc. — very care¬
fully, as well as the items of expense involved in
handling his business, but if a freight bill is pre¬
sented to him for $50.00, which should be $35.00,
he pays it and gives the matter no thought.
“Freight and express matters are handled under
such a varied classification that it is impossible
for the active business man to keep sufficiently
Informed of the changes that are made almost
daily to be able to check up his freight and ex¬
press accounts, and know that he is paying only
the legal rate.
“For the cost of one cheap clerk you can shift
your responsibility in these traffic matters to the
Northwestern Traffic Bureau and we will look
after these important questions for you.”
The Departments Explained.
Secretary Laird knew that many questions
would be asked as to what each department is
supposed to do. He answered all of these ques¬
tions by a careful summary of what each is sup¬
posed to accomplish. Part of. his statement fol¬
lows :
“The legal department will pursue a policy of
making it almost impossible for disputes to
arise, rather than a policy of getting members
out of disputes in which they are involved. The
department will fight all disputes based on merit
to a finish. This policy has enabled the associa¬
tion to enforce more claims and maintain a
higher standing with the carriers than is enjoyed
by any other similar organization. It has also
had the effect of reducing litigation to a mini¬
mum.
“Many meritorious claims are so small that the
carriers decline them, but because they believe the
association will not finance the litigation. To
meet this situation, your secretary has devised
the following plan :
“The association shall establish, formally, a
legal department with expert counsel at its head.
Its counsel shall devote such of his time to the
matters as may be necessary, and shall be placed
upon a retainer sufficiently compensatory. He
shall designate sub-counsel in every county seat
of every county in which the association has
members. The sub-counsel shall be supervised by
and shall proceed only as directed by the chief
counsel. All sub-counsels shall, if possible, be
upon a contingent fee basis of compensation, and
so far as possible will be limited to the actual
trial of cases in court.
“The preparation of the cases, the drawings of
the pleadings, analyzing of evidence, the taking
of depositions, of appeals and question of policy
to be pursued, will be handled by the chief
counsel.
“The chief difficulty encountered by the asso¬
ciation today is the lack of knowledge of local
counsel of matters handled by the association,
and the almost prohibitive expense of handling
the litigation in Minneapolis. Matters of the
nature handled by the association require special
training, expert legal counsel devoting his time
to the matter and required to keep abreast of con¬
stantly changing conditions. Local counsel cannot
and do not do this. The result is that it is not
safe to allow them to handle cases of this kind
against thoroughly trained and efficient counsel
for carriers.
“On the other hand, the expense of conducting
litigation in Minneapolis where competent coun¬
sel can be secured, is prohibitive, and the delay
due to the heavy volume of litigation always be¬
fore the courts, excessive. The preliminary ex¬
pense involved in handling litigation in the city
will average $50, and the delay from six months
to a year. _ Under the plan proposed the delay
will be entirely eliminated, and the expense will
be cut to $5.00, to say nothing of the saving in
convenience to witnesses by allowing them to
travel to the county seat instead of to the city,
and the advantage of a friendly jury.
“It is the belief of your secretary that the plan
proposed will give the advantage of expert,
trained advice to sub-counsel, and thus overcome
the limitations of their lack of experience.
“Matters of rate regulation, discrimination,
transit privileges, routing and the like are assum¬
ing increasing and paramount importance.
Freight charges form from fifty to eighty per
cent of the total cost price of fuel. As freight
charges advance and force up the price of coal,
the margin of profits necessarily diminishes. An
advance in rates, sufficient to drive Illinois or
all-rail or trans-lake coal out of the northwest¬
ern market enables the dock carriers to advance
their rates, or the dock companies increase their
margin of profit and decrease the dealer’s margin
of profit. The dealer’s margin of profit on Illinois
coal is in many instances larger than on other
coal. If rate advances drive Illinois coal off
the market the dealer is driven to lower the
margin offered by other coal.
“Local discriminations, violations of the long
and short haul clause provisions of the several
commerce acts, absence of joint rates and through
routes, mis-routing, all serve to reduce profits. It
is the plan of the secretary to have the chief coun¬
sel handle all such matters and to have constant
checks and comparisons made, with the view of
automatically protecting every member before,
and not after, the damage is done.
“In addition, the secretary will, from time to
time, issue bulletins of instructions to members
dealing with rate, routing and general commerce
matters, and will at all times personally or by
counsel be in a position to handle all inquiries
along commerce lines.
“Referring to the procuring of protective legis¬
lation. The courts often hold that the laws do
not in fact give rights which seem to be unques¬
tionable. Whenever any such situation is found
it is your secretary’s plan to have the entire ma¬
chinery of the association turn its efforts to se¬
cure the amendment of the existing laws.
“Your secretary begs to report that as early
(Concluded on page 67.)
Photographed at Minneapolis, July 15, 1915.
64
THE BEACK DIAMOND
[July 24
Meaningless Contracts — The Cost to the Trade.
“When is a contract not a contract?”
This is not an end man’s joke. It is, in¬
stead, a business question and answer is;
“When it applies to the buying and selling
of coal. That is, when the coal man’s cus¬
tomer is called upon to live up to his part of
the bargain.”
Many coal men — retailers — and most buyers
of steam coal have come to look upon con¬
tracts, as now written and constructed, ^ as
the biggest of all jokes. They mean nothing
at all. Coal sold on contract is not sold at all.
It is only optional.
This summer has been of the kind to try
patience to the limit in this respect. Producers
have labored assiduously to close contracts
and they have succeeded. Today only thirty
to fifty per cent of the requirements called by
those documents are being taken. The result
is that coal sold once at great expense must
be sold again at even greater expense. This
system spells ruin.
“Of all the lop-sided, inconsistent, and pur¬
poseless instruments of any trade, the coal
man’s contract is about the worst. It is so
easily overbalanced that it has no stability.
To the coal man who accepts it, it is ‘neither
fish, flesh nor fowl.’ He signs away all of his
rights when he signs a contract in order to
get a customer. Thereafter any advantage that
accrues is wholly in favor of the man he has
bound himself to serve. The market goes up
and the customer demands His ‘pound of flesh.’
The market goes down and the customer is
overstocked, is running half tiine and vvhat
not as long as he can evade taking his stipu¬
lated amount.”
That may sound like a tale of woe frorn a
pessimist and a man of small business ability.
It is not. It comes from a man of recognized
standing in coal. Also, any man of experience
in coal selling knows at once it is a statement
of actual conditions about which there can be
no dispute.
It is a feature of the coal trade that tradi¬
tions are like the flag — -to be respected on sight
and never trampled upon under any circum¬
stance. So, therefore, it is like unto treason
to say a word against the contract system that
has, year after year, grown out of all propor¬
tion to other angles of the selling end of the
game. And yet contract business is like the
little girl who, “when she was good she was
very, very good, and when she was bad she
was horrid.”
Today the coal business is “horrid.” Every
buyer of consequence wants a contract to pro¬
tect him against conditions which may arise
later. But now the contract means nothing
because the coal user can get coal cheaper on
the open market. Thus the operator has
optioned away his future prospects and is get¬
ting no present benefit. He loses both ways
by an arrangement which was supposed to be
of mutual benefit.
This brings the whole contract question of
coal to the same jumping off place, which is;
How can this situation be remedied?
Frankly, it is doubted if the present system
can ever be patched up. It is wrong funda¬
mentally. It is wrong in that it is all in favor
of the customer. It is wrong legally in that it
is an option with nO consideration attached.
It is wrong legally because it is an option
drawn in the terms of a contract. The inten¬
tion and the instrument do not agree. The
only solution, of course, is to redraw the in¬
strument or, if the contract form is adhered
to, to force observance of its terms.
Here is cited a concrete case which shows
wherein the fault lies and how well the cus¬
tomer has been schooled to get every possible
advantage. A prepared size of coal from a cer¬
tain district is used by a given industry be¬
cause of its relative cheapness and because it
yields the intense heat required by the char¬
acter of the buyers’ business. The buyers
represent quite a large industry. Hence one
little section of Pennsylvania uses thousands
of cars of coal in the course of a season. In
the summer months this size of coal is abnor¬
mally cheap. In fact, at the mines it is looked
upon as a nuisance and hence any old price
will buy it. But when late fall and winter
come, the demand quickens and the price is
likely to double and treble what it was in
summer.
Because of its unstabilized price, to get
Under the Present System, Coal Is Sold
Twice at Double Expense — A Contract
Today Is an Option Given Without a
Binding Consideration.
contracts for this size always entails consider¬
able salesmanship.
In the particular instance in mind the busi¬
ness had been done under contract for three
or four years. Sometimes the coal man has
been fortunate enough to “break even.” In
1914, the business was unprofitable, because
when the size was high the customer took his
full requirement and when the price was low
the buyer dodged the contract.
When it came time to close the contract for
this year, the coal man said that the business
showed no profit for him unless the terms of
the contract were adhered to. The customer
replied that he had always tried to live up to
his part of the bargain.
In reply, the coal man pointed out that the
buyer had failed to take even fifty per cent
of his contract coal when the price was at
low mark in the summer. Despite the known
fact that summer is the busiest season for that
particular industry, the buyer said that he
had not taken the coal because he found no
need for it at that time. What he said was
not true, but he said it so engagingly the coal
man was expected to smile and say; “That’s
all right.”
Here the producer offered to give the cus¬
tomer fifty cents on the contract price for
every car that was not delivered in accordance
with the contract, if the customer would agree
to pay fifty cents on the ton for every car
that he failed to take, as specified in the con¬
tract.
And the answer was “Notbyadamsight.”
That is one kind of contract dealing. Here
is another.
A firm had a contract with a New England
concern. This called for the delivery of a
specified amount of coal per month. This
contract was entered into in April. The sum¬
mer months passed, during which the New
Englanders did not take more than one-fifth
of the coal they had bargained for.
During that time, they paid about fifteen
cents on the ton for what they took more than
they would have paid on the spot market.
October came and with it a stiffening of price.
Spot values rose about forty cents a ton over
the contract price. Then the New Englanders
demanded that every ton of coal stipulated in
the contract be shipped at once. They wanted
even the coal not taken in the summer months.
The coal man demurred. The two men then
took the case to their respective lawyers. The
fatal contract was produced. “No way out of
it,” said this limb of the law. “You must fill
the contract that you have entered into.”
Then spake the coal man;
“But these fellows failed to live up to their
part of the contract. They took only one-fifth
of the tonnage when we had them by the short
wool. That nullified the contract.”
The legal light said it might have done so
if the proper action had been taken at the
proper time. But, the coal man had continued
the contract in force by continuing to ship
to the New England firm.
Before they got through the deal, the coal
man was out about five thousand dollars.
Here also is cited a case of a type that is
more or less familiar. A manufacturer who
takes about a car of coal a day and whose re¬
quirements are such that the producer slows
down shipments to little or nothing in July and
August, was under contract. Because of a
straight loss of about a dime a ton faced on
this business, the coal producer made a per¬
sonal call. The manufacturer told him that his
plant was running less than half-time. He
offered to take the coal man out and show him
that the storage capacity for coal was filled up.
They went. Some coal was standing on track.
The car numbers did not look familiar.
Nor did the name of the road printed on the
side of the cars. The coal man made a mental
note of these things. When he got back to his
office, no record of these cars could be found.
The natural supposition was that the coal
was supplied through a source that was selling
spot coal. The buyer had used another man’s
coal to convince the coal man that the bins
were overstocked. That was “some nerve.”
The most audacious thing of the whole ex¬
perience was a sign hanging over the manu¬
facturer’s desk that read; “A Contract is a
Contract.”
But, what about the remedy? How can such
a situation be straightened out?
The natural and legal thing to do is to bring
suit for damage or to compel the customer to
live up to his contract or to cancel the con¬
tract. Such suits are rare for two reasons.
First, it is one thing to sue and it is another
thing to get a judgment. Second, no one con¬
cern can reform the common practice. In¬
stead, he will drive himself out of business. In
the east, where customers are hard to get and
still harder to hold, to file a suit means to close
the door of that buyer on the producer forever.
Many a coal man pockets the loss on such
contract business year after year. His only
avenue of escape is the hope that the year
will come when he can turn the tables on
some one and get it all back.
More and more it seems the notion of “beat¬
ing Coal contracts” is being developed into a
system by business in general. Sooner or later
there must come a time when coal men will
have to stand together to break up this sys¬
tem. The first step to take is to force ob¬
servance of contracts. The second is to ex¬
pose those persons who cannot or will not
live up to that, their signed obligations. How
live up to their signed obligations. How
“is a different matter, Maurice.”
Miners’ Remittances.
Statistics gathered in regard to the amount of
money remitted abroad from Wilkes-Barre dur¬
ing the first six months of 1914, before the out¬
break of the war, leads to the conclusion that an
outflow of nearly $10,000,000 a year from the
anthracite coal fields of Pennsylvania has been
stopped. The amount of money sent from
Wilkes-Barre through the postoffice, banks and
ticket agencies from January 1 to July 1, 1914,
was approximately $350,000. The amount sent
through the postoffice includes the Kingston,
Parsons, Luzerne and Ashley branches, which
means that a population of approximately 75,000
shipped this amount.
The counties of Carbon, Lackawanna, Lu¬
zerne, Northumberland and Schuylkill, in which
ninety-six per cent of the total output of anthra¬
cite is produced, have a combined population of
about 1,050,000 persons, so that if the money was
shipped proportionately from all parts of the
region the total amount for six months would be
$4,900,000. The shipments of money to Europe
are heavier during the Christmas holidays than
at any time during the year, so that the total an¬
nual shipments cannot have fallen far short of
$10,000,000.
The Wall Street Journal recently estimated the
total annual amount of such remittances from
the entire United States at $850,000,000, of which
$100,000,000 went through the postoffice and the
balance through banks, immigrant bankers and
steamship and ticket agencies.
Of recent years the amount has decreased be¬
cause the miners are buying their own houses.
Bankers say that the maximum remittances
were made a decade ago when laborers were
more accustomed to work here for a few years
and then retire to their native lands on their
savings, but now the foreigner is taking root.
The Locomobile Company of America, whose
head office is at Bridgeport, Conn., is distributing
copies of a new and attractive catalogue, describ¬
ing the Locomobile worm-drive motor trucks.
The catalogue shows and describes the many
parts of the truck and several photographs ap¬
pear of the Locomobile under practical opera¬
tion in several different lines. Sketches showing
the different styles of bodies are also shown
Readers of The Black Diamond can secure a
copy of this catalogue by writing the above men¬
tioned company.
No. 4]
THE BLACK DIAMOND
65
New Coal Companies.
Charleston, W. Va. — The Coal River Colliery
Company is the name of a recently Incorporated
company for $50,000. The company’s office is lo¬
cated in the Odd Fellows bldg., Charleston, W.
Va., and its mine in the Sherman District of
Boone county, W. Va.
Development work will start in about sixty
days, and require an expenditure of about $30,-
000. W. C. Sharpe, president of the company, is
in charge of the development work. It is a drift
mine.
Broad Mountain, Pa. — The property of the
Ellsworth Coal Mining Company, a recently in¬
corporated concern for $5,000, is owned by the
Chas. D. Norton Company of Philadelphia. G.
M. Keiser is president, Chas. D. Norton, vice-
president and treasurer. It is a slope mine prop¬
erty producing about 5,000 tons a month, which
will be increased very largely at an early date.
Midland, Ark. — A new company, the Midland-
Six Coal Company recently incorporated for $10,-
000, will reopen the famous Midland-Six mine
and have same in operation by August 20. About
$10,000 will be spent in improvement work and
repairs. J. E. Finney is general manager, T. A.
Freeze, superintendent and R. A. McEachin,
agent.
Pittsburgh- Buffalo Co. Sold.
Pittsburgh. — The properties of the Pitts-
burgh-Buffalo Company were sold at a public
sale August 15th, to the Union Trust Com¬
pany for $1,500,000, the only bid offered for
the holdings of the company. The sale was
subject to the lien of a first mortgage made in
1909 to secure a bond issue of $2,500,000 of
which bonds of the par value of $1,769,000
were issued and upon which there has been
no interest paid since August 2, 1913.
The sale represents an outlay of nearly
$3,500,000. The properties were offered at
auction under the direction of Attorney George
H. Calvert, who was named the master by the
court. The holdings consisted of six prop¬
erties, the Mariana mine, the Hazel mine, the
Erancis mine, the Johnetta mine, the Mertha
mine and the Higbee tract.
Ohio Coal Rate Agitation.
Columbus, Ohio, July 22. — (Special Corre¬
spondence.) — Coal rate reforms reached a
more acute stage this vveek as a subject of
agitation. The most open recognition yet
given the matter by railroad officials was a
meeting held here Monday and Tuesday, in
which the carriers took the initiative by asking
shippers in for a conference and being ap¬
parently anxious to secure all information
available.
It was not the object of the meeting to go
on record for or against rate readjustment,
but to talk the matter over in a friendly spirit.
Some of the railroads, like the shippers, are
beginning to feel the pinch of having mines
in their territory closed down. Nothing tangi¬
ble was accomplished beyond the appoint¬
ment of a committee of seven railroad men
and seven operators to consider and report
some definite plan of action. Those repre¬
senting the railroads are: Wasson, of the
Hocking Valley; Mathews, of the B. & O.;
Terry, of the New York Central lines; Wood-
side, of the Wabash-Pittsburgh Terminal;
McMasters, of the W. & L. E.; McCabe, of
the Pennsylvania lines. Coal men: Winder
and Weitzel, of Columbus; Jones, of Toledo;
Ebersbach, of Pomeroy; Timmons, of Zanes¬
ville; Maurer and Robins, of Cleveland. The
operators represent the various Ohio coal dis¬
tricts.
At least a partial report will be made at a
meeting called for Cleveland on July 27.
The meeting was harmonious, and there was
a hopeful feeling that some measures of re¬
lief might be worked out. The coal men will
insist that the differential against West Vir¬
ginia must be increased. In the opinion of one
of the railroad officials, operators inflict per¬
manent injury upon themselves by completely
closing down, thus allowing other fields to get
their markets. About seventy railroad and
coal men took part. S. H. Robin, of Cleve¬
land, acted as chairman.
A second rate movement that came to a
head this week was the appeal of the United
Mine Workers to the state utilities commis¬
sion, formerly made through their attorney.
Judge George B. Okey. The petition claims
that the present rate on Ohio coal is “un¬
reasonably high and discriminatory to Ohio
coal producers.” The miners ask that the mat¬
ter be thoroughly investigated and that the
commission exercise its power to correct the
injustice.
The petition states that Ohio operators are
charged 80 cents a ton for hauling coal only
50 miles, while West Virginia coal is hauled
in many instances over 200 miles for only 85
cents. Judge Okey, in discussing the case
said: “Ohio railroads will haul a ton of West
Virginia coal from Armitage, the junction of
the Hocking Valley and the Toledo & Ohio
Central road near Athens, to Toledo for 39
cents as their share of the freight; while the
same railroads charge Ohio operators 85 cents
a ton for hauling coal the same distance and
over the same route.”
Detroit Bids Opened.
Detroit, Mich., July 22. — (Special Correspond¬
ence.) — Contracts for the local supply of the
public lighting commission of Detroit were
awarded on a b. t. u. basis to the P. Koenig Coal
Company of Detroit. Tests of the coal offered
by that company developed 14,465 b. t. u., from
which the cost to the commission was figured at
.07341 for 1,000,000 b. t. u., a slightly better show¬
ing than was made in tests of other coals and
somewhat better also than the estimate of the
P. Koenig Company.
Evaporation per pound and cost of handling
ashes also were considered. The contract pro¬
vides for a bonus to the contractor on coal of
higher calorific value than that submitted for test
and a reduction in payment on coal of a lower
calorific value. The contract is for the commis¬
sion’s entire supply to June 30, 1916, estimated
at about 32,000 tons, of which about 90 per cent
is to be nut, pea and slack and 10 per cent three-
quarter lump, with the stipulation that the lump
shall not exceed 15 per cent slack and the pro¬
portions of the fine coal shall be nut 25 per cent,
pea 25 per cent and slack 50 per cent, approxi¬
mately. The bids were :
Firm and Coal — 54 Lump. N.P. & S.
R. L. Aylward — Kanawha, No. 2 gas... $2. 40 $2.25
R. L. Aylward — W. Virginia . 2.40 2.15
United Fuel & Supply — No. 2 gas. . 2.40 2.15
United Fuel & Supply Co. — Richwood... 2.50 2.20
John T. Hesser Coal Co. — Winifred . 2.50 2.10
Jewett, Bigelow & Brooks — Iroquois.... 2,50 2,15
P. Koenig Coal Co. — Meadowbrook . 2.40 2.15
Island Creek Coal Sales Co. — Island Cr. 2.50 2.15
Ohio & Michigan Coal Co. — W. Virginia
No. 2 gas . 2.35 2.10
Parker Bros. Co., Ltd. — White Star. . . . 2.40 2.13
Mancourt-Winters Coal Co. — Winifred.. 2.45 2.05
The First Roberts Ovens.
Throughout the country attention of coke manu¬
facturers and others interested in coke or by¬
products of coal, is turned towards Chattanooga,
Tenn., because the first Roberts coke ovens ever
erected have been put in operation there by the
Chattanooga Gas & Coal Products Company.
The inventor claims that from the standpoint
of quick conversion of coal into coke the ovens
now completed will prove more efficient than any
type now used in this country or even in Germany,
where the art of coking coal is conceded to be the
highest attained, economy and expeditious work
considered.
If Mr. Roberts’ design proves successful, gas
and coal manufacturers expect it to revolutionize
the coke industry in the country and numerous
visits are expected from northern manufacturers.
Heat was started on the ovens — for the Roberts
ovens are fired from the top in a way never at¬
tempted before — about June 1 and it was fully
thirty days later that a sufficiently high tem¬
perature was reached to begin coking.
A perpetual motion process of operation is in¬
corporated in the Roberts ovens, or, in other
words, each batch of coal is carbonized by the
burning of ga$ generated by former batches.
This made it necessary for the Chattanooga Gas
& Coal Products Company to contract with the
Chattanooga Gas Company for the purchase of
gas for bringing the ovens to their first heat.
Virginian Railway’s May Shipments.
Slab Fork . 29,645
New River Collieries Company . 25,229
Loup Creek Col. Company . 22,688
MacAlpin Coal Company . 22,172
Kanawha, Glen Jean & Eastern R. R. via Pax.... 18,215
Winding Gulf Col. Company . 17,871
E. E. White Coal Company —
Glen White . 17,654
Stotesbury . 14,879
Raleigh Coal & Coke Co . 14,765
Gulf Smokeless Coal Co . 14,148
Sullivan Coal & Coke Co . 11,703
Pemberton Coal & Coke Co . 9,873
New River Collieries Co. Sun . 9,152
Gulf Coal Company . 8,867
Bailey Wood Coal Company . 7,826
Lynwin Coal Company . 6,805
Long Branch Coal Company . 6,679
Wyoming Coal Company . 6,654
Pemberton Coal & Coke Co. —
Summerlee . 4,372
Carlisle . 3,590
Lochgelly . 3,480
Beckley . 2,408
Mabscott . 1,950
Scarbro . 5o
Sprague . 1,844
Cranberry . 28
Mt. Hope Coal & Coke Co . 2,633
Sugar Creek Coal & Coke Co . 2,313
Trace Fork Company . 2,000
Algonquin Coal Company . 1,873
Woodneck Coal Company . 1,532
Virginia Smokeless Fuel Co . 856
Pemberton Fuel Company . 710
Mullens Smokeless Company . 209
W'est Virginia Coal Mining Company . 38
307,006
Birmingham Operators Protest.
The sole reason why certain operators of coal
mines desire the continuation of the convict lease
system is the necessity confronting them of filling
orders in accordance with contracts for future
delivery.
The above was a statement made by George B.
McCormick, president of the Pratt Consolidated
Coal Company, to the house committee which is
considering the recommendation of the probe com¬
mittee that the convict lease system be abolished.
Mr. McCormick added that convict labor was not
as remunerative as free labor and that the only
argument in its favor was the fact that it pro¬
duced regularly and uniformly.
The operators deeply impressed the committee
and it was the report that the members might
vote adverse to the bills prepared by the recess
committee on investigation. It is certain that the
committee is now more thoroughly convinced than
ever before that the convict problem is one of
such serious import that it should be solved only
after constant and systematic study.
H. L. Badham, another operator using convicts,
is protesting against abolishment of convicts be¬
ing leased to coal mines.
The Fuel Dealers Social Club of Milwaukee will
hold their tenth annual picnic at Waukesha Beach,
July 27. E. A. Eleming is chairman of the ar¬
rangement committee. The honorary committee
includes Edward A. Uhrig, F. W. Fellenz, A. S.
.‘\ustin, E. T. McDonald, Guy Gregg, C. W.
Moody, C. D. Weeks, J. M. Fiske, Jr., Edward
Callaway and W. D. Caldwell.
The First Roberts Coke Oven Erected at Chattanooga. Its Principles Is New.
66
[July 24
THE BLACK DIAMOND.
Coal Dust Tests by Bureau of Mines
The liureau of Mines has just issued one of
its technical papers on “Methods of Prevent¬
ing and Limiting Explosions in Coal Mines.”
Its authors are George S. Rice, chief mining
engineer, and L. M. Jones, mining engineer.
Mr. Rice in the introduction says;
“Although advance in the knowledge of
mine explosions, particularly coal-dust ex¬
plosions, has been slow, yet since investiga¬
tions were begun in 1908 by the testing sta¬
tions of various countries, progress has been
steady, each station contributing to the gen¬
eral fund of knowledge.
“During the fiscal year ended June 30, 1914,
the bureau of Mines had an especially fruitful
period of investigation, available funds being
sufficient to carry on an important series of
large-scale explosion tests at the experimental
mine at Bruceton, Pa., in order to determine
the relative explosibility of different mine
dusts and the efficiency of various methods
of preventing and of stopping explosions. The
large-scale testing for relative inflammability
was supplemented by inflammability tests in
the laboratory. In all, the explosion experi¬
ments were undoubtedly the most important
and instructive of their kind ever conducted in
this country.
“During the year the work was greatly
stimulated by a month’s visit of J. Taffanel, the
distinguished director of the French testing
station at Lievin, who collaborated with the
bureau’s representatives at the experimental
mine in making standardizing tests that would
permit the comparison of the more important
results with those obtained in the French test¬
ing gallery, and also with the results of the
small group of experiments made in the Com-
mentry mine, France. The tests were de¬
signed more particularly to determine (1)
whether the same percentages of ash and
other inert matter in the dust mixtures for
a similar class of coal would prevent ignition
of tha dust from a blown-out shot, and (2)
I have received the following letter from
a Pennsylvania reader. It raises a some¬
what new question highly important to every
man who carries fire insurance;
“Will you kindly explain what the true
meaning is of the clause in a fire insurance
policy that’s known as the eighty per cent
clause? We are now arguing with our insur¬
ance company over it, without result as yet.
I understand all fire insurance policies con¬
tain this clause, but it seems that few know
it, as several men who carry insurance on
their own stock and buildings, and who I
have asked to explain it to me, say they never
heard of it. * The local agent did not seem to
understand what it meant until he had writ¬
ten on to the company.
“About a month ago we had a fire and the
actual loss on building and stock was $4,000.
The actual value of building and stock is
about $14,000, and we carried $7,000 insurance.
1 find all our policies contain the eighty per
cent clause, and I was under the impression
that it meant that we could not get more
than eighty per cent of the loss, in case of
fire, but it seems the company contends we
do not get even that much. The agent at¬
tempts to explain it on some ground of pro¬
portion, but I will not attempt to give you his
explanation, for I do not understand it.
Please let me know just where I stand under
this clause.”
I have received several letters from time
to time about this eighty per cent clause, but
have not attemped much in the way of an
answer, because insurance is very technical,
and this hardly seemed like a question of law
The queries persist, however, and as there
really is a legal question involved, I have now
gone into the matter and think I can explain
it so that every one can understand.
Let me say that I have never investigated
a question in which there seemed to be so
much ignorance and diversity of opinion as
there is in this case. Even some insurance
agents frankly express doubt as to what the
clause means and the majority of insured per¬
sons don’t even know the thing exists.
Whether it is so intended or not, the eighty
whether a strong explosion of gas or dust
would be propagated throughout a long ad¬
jacent zone containing such mixed dust.
“While Taffanel was present, certain barrier
devices that had proved effectual in the French
gallery were tested to ascertain whether they
would prove effectual under American mine
conditions, and also to compare their ef¬
ficiency with barrier devices devised by the
bureau. Although the French devices proved
effective, the bureau’s seemed better suited to
the usual American mine conditions.
“Much information was obtained from the
tests conducted during the year in determin¬
ing the velocity of propagation of explosions,
the pressure obtained at certain stages with
different mixtures, and the gases produced.
At the time of preparing this publication, the
data are being compiled, but compilation and
correlation of the large mass of data will take
considerable time. Therefore, it has been
considered expedient to publish promptly a
brief report of such practical results as may
be applied to the prevention and stopping of
explosions.
“Especially, it is hoped that the suggestions
may lead operators of dusty bituminous mines
to take addditional safeguards during the win¬
ter and early spring, because it has been
demonstrated that there is especial danger of
coal-dust explosions during the following cold
weather, owing to the natural drying out of
coal dust in the mines. Of course, it must be
fully understood that precautions must not be
neglected at any time in the year; the issuance
of methane into the mines is not affected by
seasoned changes, and in extensive mines, if
watering of some sort is not practiced, dry
dust is frequently found in abundance in the
interior of the mine, even in warm, humid
weather.
“The final proof of a safe condition where
watering or humidifying is employed is to
have the dust wet in every part of the mine,
and at all times of the year.”
per cent clause is one of the biggest jokers in
an insurance policy.
Following is the form in which the eighty
per cent clause usually appears in fire insur¬
ance policies;
“Reduced rate average clause. In consid¬
eration of the reduced rate at which this pol¬
icy is written, it is expressely stipulated and
made a condition of this contract that this
company shall be liable for no greater pro¬
portion of any loss than the amount hereby
insured bearer to eighty per cent of the actual
cash value of the property described herein,
at the time when such loss shall happen.”
Not easy to grasp at first glance, but when
analyzed it is clear enough. The object is to
get you to carry at least eighty per cent as
much insurance as the property is worth —
the companies admit that. If -you do not
carry eighty per cent then the company’s lia¬
bility drops below 100 per cent of the loss in
case of fire.
Let me illustrate that. You have a stock
worth $5,000 and the policy of insurance which
you carry on it contains the eighty per cent
clause. Under this, to protect yourself, you
should carry at least $4,000 insurance. If you
do that you can collect for the full loss, pro¬
vided of course, it is not more than $4,000.
But suppose you carry only $3,000 insur¬
ance. You have a fire and the loss is $3,000.
Instead of collecting $3,000, which you could
have done had you carried $4,000, you will
collect only $2,250, for this reason; The clause
says that if you do not carry eighty per cent
of insurance the company shall be liable only
for the proportion of the loss that the amount
of your insurance bears to eighty per cent of
the full value of the property. If the amount
of your insurance is only half of eighty per
cent of the full value of the property, then the
company will only be liable for one-half the
loss. To go on with the above illustration,
the $3,000 which you carried is three-fourths
of $4,000, which is eighty per cent of the full
value of the stock. Therefore the company
will pay three-fourths the loss, or $2,250.
Suppose your stock again to be worth $5,000,
and you carry only $2,500 insurance — fifty per
cent instead of eighty per cent of the total
value. If the loss is $3,000 you will collect
$1,500, just fifty per cent.
I have known men who had stock up to
$10,000, but who carried as little insurance as
$2,000 or $3,000, on the principle that nowa¬
days few fires are total losses, and probably
a small sum would be sufficient to pay the
expenses of a fire and do whatever replenish¬
ing is necessary. If the policies of such insur¬
ance as this contain the eighty per cent clause,
the holders may find themselves very badly
off indeed. Say their stock is worth $10,000,
They should carry eighty per cent or $8,000.
They actually carry $2,000. They have a fire
and the loss, as they figured, is only $2,000.
If they had known what they were about, the
plan would have worked out all right, but their
policy contained the eighty per cent clause,
and they did not know it. Therefore their
case will figure out like this; Their $2,000 in¬
surance is only one-fourth of the eighty per
cent, therefore the company’s liability is lim¬
ited to one-fourth the loss, or $500.
There is no use suing an insurance com¬
pany on any other theory of the eighty per
cent clause, for this is assuredly the correct
one, and your suit will never get anywhere.
—(Copyright July i, 1915, by Elton J. Buckley.)
Annual Joint Field Meet.
There will be a great gathering in San Fran¬
cisco from September 16 to October 6, inclusive,
of persons interested in mining and in safety
subjects.
September 23 and 24 — in the midst of the above
period — there will be held on the North Garden,
in front of the Palace of Mines and Metallurgy,
Panama-Pacific International Exposition, on the
first day a demonstration and state contests and
on the second day an interstate contest in mine
rescue and first aid. These will be under the
auspices of the Bureau of Mines, the American
Mine Safety Association and the California Metal
Producers Association. Following is the pre¬
liminary program ;
September 23
10:00 a.m. Mine Rescue Demonstration and State Con¬
tests.
12:00 m. Demonstration of inflammability of coal dust
and coal dust explosion. Mine rescue dem¬
onstration; crew enters gallery.
2:00 p.m. First Aid Demonstration and State Contests.
4:00 p.m. Demonstration of inflammability of coal dust
and coal dust explosion. Mine rescue dem¬
onstration; crew enters gallery.
September 24
10:00 a.m. First Aid Contest for Interstate Supremacy.
12:00 m. Demonstration of inflammability of coal dust
and coal dust explosion.
2:00 p.m. Mine Rescue Contest for Interstate Supremacy.
4 :00 p.m. Demonstration of inflammability of coal dust
and coal dust explosion.
8:00 p.m. Award of prizes and souvenirs, Convention
Hall.
Music each day by exposition bands.
The following organizations will hold indoor confer¬
ences:
September 17-18. The American Institute of Mining En¬
gineers.
September 20-2.5, International Engineering Congress.
September 20-22. Tlie American Mining Congress.
September 27-30. National Safety Conference, under joint
auspices of the National Safety
Council and the California Indus¬
trial Accidents Commission. Sept.
28 to be devoted to mine safety con¬
ference.
October 6. The World's Insurance Congress will
devote this day to the subject of the
relation of insurance to mine safety.
California State Mine Rescue and First Aid Contest will
be held Sept, 22.
Yolande Mines Electrified.
The Yolande Coal & Coke Company has com¬
pleted putting in electrical equipment for its
mines at Yolande, Tuscaloosa county, Ala., and
operations with electrical power have begun with
apparatus capable of 150 — 200 kilowatts with the
intention to increase this as the development goes
on. This is done despite the fact that the com¬
pany could get all the coal that it needed for
operation of boilers with which to provide oper¬
ating power, but it has been determined that elec¬
trical power as furnished by Alabama Power
Company is cheaper and more profitable than to
use coal even though mining it.
C. E. Tuttle has opened an office in the
Oppenheim building, at the corner of Sixth
and Minnesota streets, St. Paul, Minn., under
the name of the Tuttle Coal Company. For
the last four years Mr. Tuttle has been mana¬
ger of the Carnegie Fuel Company, St. Paul,
and prior to that time was identified in various
capacities with some of the well known dock
companies.
Eighty Per Cent Clause in Fire Insurance Policies
No. 4]
THE BLACK DIAMOND
67
Northwestern Traffic Bureau.
{.Concluded from page 63.)
as April, 1914, he directed the association counsel,
who was then in Washington, to urge the
enactment of the Cummins’ amendment. Since
that time until the enactment of the law both
the secretary and the counsel labored unceas¬
ingly to secure the end finally accomplished.
This law provides as follows:
“ ‘That any common carrier, railroad, or
transportation company subject to the pro¬
visions of this act receiving property for trans¬
portation from a point in one state or territory
or the District of Columbia to a point in an¬
other state, territory. District of Columbia, or
from any point in the United States to a point
in an adjacent foreign country shall issue a re¬
ceipt or bill of lading therefor, and shall be
liable to the lawful holder thereof for any loss,
damage or injury to such property caused by it
or by any common carrier, railroad, or trans¬
portation company to which such property may
be delivered or over whose line or lines such
property may pass within the United States or
within an adjacent foreign country when trans¬
ported on a through bill of lading, and no con¬
tract, receipt, rule, regulation or other limita¬
tion of any character whatsoever shall exempt
such common carrier, railroad or transporta¬
tion company from the liability hereby im¬
posed. . . .
“ ‘Provided, however, that if the goods are
hidden from view by wrapping, boxing or
other means, the carrier is not notified as
to the character of the goods, the car¬
rier may require the shipper to specifically
state in writing the value of the goods, and the
carrier shall not be' liable beyond the amount
so specifically stated, in which case the Inter¬
state Commerce Commission may establish
and mairttain rates for transportation, de¬
pendent upon the value of the property shipped
as specifically stated in writing by the shipper.
Such rates shall be published as are other
rate schedules; provided, further, that noth¬
ing in this section shall deprive any holder of
such receipt or bill of lading of any remedy or
right of action which he has under the exist¬
ing law; provided, further, that it shall be
unlawful for any such common carrier to pro¬
vide by rule, contract, regulation or otherwise
a shorter period for giving notice of claims
than ninety days and for the filing of claims
for a shorter period than four months, and for
the institution of suits than two years; pro¬
vided, however, that if the loss, damage or in¬
jury complained of was due to delay or dam¬
age while being loaded or unloaded, or dam¬
aged in transit by carelessness or negligence,
then no notice of claim nor filing of claim shall
be required as a condition precedent to re¬
covery.’
“At present, active steps are being taken to
secure a law requiring settlement of claims
within sixty days; the Interstate Commerce
Commission is being urged to regulate destina¬
tion weights so as to facilitate settlement of
loss and damage claims and secure recognition
of wagon scale weights. Equally important,
however, is the effort of the association to
secure reasonable regulation of weights by
states and municipalities. It is, of course, the
purpose of your secretary, in connection with
all these matters, to prepare and distribute
blanks and bulletins of instruction, designed
to make loss or waiver of rights by members
impossible.’’
The Plan Is Approved.
All matters' and documents were placed be¬
fore the organization committee. After they
had been considered, the committee reported
as follows:
“We, your committee, to whom was referred
the matter of reorganization, after due and
careful consideration, submit the following re¬
port:
“Your present organization has no apologies
to offer to its members, the courts of justice,
or the public for any of its actions. Its meet¬
ing and convention deliberations have always
been public. The conduct of its business of¬
fice and affairs have always been such that no
one need be denied the fullest information con¬
cerning its actions. While it has vigorously
prosecuted the work for which it was organ¬
ized, and accomplished results attained by no
other like organization. Its vigor has been so
tempered with that due regard for the rights
of others, we believe it stands today as the
foremost organization of its kind in the United
States, and absolutely immune from violations
of law or even recognized trade ethics.
“But in our opinion it has reached and in
fact gone beyond the scope of accomplishment
for which it was organized. The wonderfully
progressive age in which we are living de¬
mands that we keep our trade organization
abreast of the times.
“Service and efficiency are the greatest words
in the business vocabulary today. They are
the standards by which all business is meas¬
ured. If our trade organization is to render
to us that service that is expected of it, it
must have its purposes and prerogatives great¬
ly enlarged and extended. If it is to render to
us this extended and enlarged service efficient¬
ly, it must be provided with necessary and
adequate funds to do so, and in our opinion a
reorganization at this time is not only advis¬
able but absolutely necessary.
“We therefore recommend that the presi¬
dent, secretary and board of directors of the
Northwestern Retail Coal Dealers’ Associa¬
tion be and are hereby instructed to proceed
at once to incorporate under whatsoever name
may seem best and for the purpose of estab¬
lishing an institution that may furnish efficient
service to its members and subscribers along
trade, traffic, transportation and legal lines as
more fully set forth in the proposals hereto at¬
tached and made a part of this report.
“Recommended as Part of By-Laws: &. The
stock shall be sold under agreement that the
owner shall assign it to his successor in busi¬
ness, and if said successor be a stockholder,
or retires from business, then the stock shall
be turned back to the treasury.
“3. No person, firm or corporation shall
own more than one share of stock, which shall
be fully paid, non-assessable and non-partici¬
pating.
“4. The stock may be sold to any retail
merchant, engaged in the sale of coal, build¬
ing supplies and any such other commodities
as are frequently or usually carried by coal
dealers.
“5. Nominations of directors shall be by
referendum vote of the stockholders.”
Resolutions Adopted.
The following was adopted as the report of
the resolutions committee:
“Resolved, That it is the sense of those in
attendance upon the Fifteenth Annual Meet¬
ing of the Northwestern Retail Coal Dealers’
Association in session in the city of Minne¬
apolis, July 15th and 16th, 1915, that it be re¬
corded as the best get-together meeting ever
held by the association; and that our hearty
thanks be extended to our worthy president
and to the directors of the association for the
time, care and thought so freely expended in
the interests of the association.
“Resolved further. That our special praise
and thanks be given to our secretarv, Herbert
L. Laird, for his diligent and efficient efforts
to further the best interests of the association,
and that we fully realize and here record that
the splendid results obtained and the place of
honor and confidence now occupied by our
association before the public and in the halls
of congress and in the general offices of the
railroads of America is due almost wholly to
his wise, careful, intelligent and persistent
management and unsurpassed and undying en¬
thusiasm.
“Resolved, That the hearty thanks of this
association be given to the coal trade journals
for the fully recorded proceedings of this and
other associations and for their enlightened,
timely and consistent efforts to further the
best interests of the coal trade in general and
the interests of the retailer in particular.
“Resolved, That we extend our thanks and
appreciation to the newspapers for the cour¬
tesies shown, in the full and liberal publicity
given to the deliberations of this convention.
“And be it further resolved. That we hereby
extend our hearty thanks to the entertainment
committee for the fine program of entertain¬
ment given us and for the many acts of kind¬
ness shown us while in this city
“Resolved, That we extend our thanks and
appreciation to the management of the Hotel
Dyckman for the use of the Grill room for our
sessions and for the uniform attention and
courtesy shown our convention attendants by
the employes of the Dyckman Hotel.
“Resolved, That we are in favor of and do
endorse the new Federal Trade Commission
and that we hereby pledge it our earnest sup¬
port and co-operation to the end that its
influence may be speedily broadened and en¬
larged and that it will be able thereby to more
easily correct all abuses and bring about a
better feeling in all lines of business.
“Resolved, That we hereby and do endorse
the bill now in Congress known as the Stevens
bill, providing for the enlargement of the
powers of the Interstate Commerce Commis¬
sion and for the appointment of commission¬
ers in Federal court districts.
“Resolved, That we do approve of and en¬
dorse the new plan of organization proposed
for our association and that we do hereby ask
its adoption at your hands, for we believe it
to be a wise, consistent and well considered
advance along enlightened Association prac¬
tices.”
Committees Which Acted.
The following were the active committees:
On reorganization, George Gregory, E. J.
Stearns, A. C. Johnson, F. J. Ward, J. H.
Dobie.
On nominations, Barney Anderson, Walter
Linton, W. F. Grasser.
On resolutions, H. T. Folsom, J. A. Young,
George Gregory.
On entertainment, H. L. Laird, chairman;
Win. H. Godwin, Berwind Fuel Co.; E. Savage,
Carnegie Fuel Co.; E. O. Fellows, Great Lakes
Coal & Dock Co.; Frank Collins, Island Creek
Coal Sales Co.; W. F. Aldenderfer, Lehigh
Valley Coal Sales Co.; L. E. Gilbert, Northern
Coal & Dock Co.; A. M. Malone, Philadelphia
& Reading Coal & Iron Co.; R. O. Eastman,
Pittsburg & Ashland Coal & Dock Co.; H. M.
Boyer, Pittsburgh Coal Co.; M. P. Hanson, C.
Reiss Coal Co.; Walter Still, Zenith Furnace
Co.; J. A. Vaughan, Clarkson Coal & Dock
Co.; T. V. Collins, M. A. Hanna Coal Co.;
Benj. Gorham, Northwestern Fuel Co.; F. O.
•De Groff, St. Paul & Western Coal Co.
Notes of the Convention.
Robert L. Green, general sales manager of
the John A. Logan Coal Company, stopped
over for the convention.
Frank N. Browning of the Purity Coal Com¬
pany was among the Chicago party present.
Their number two mine had shipped an 1,800-
pound block of “Purity” which was placed on
exhibition in the hotel lobby. The coal was
backed up against the marble wall of the
lobby. A number of the local dealers would
like to have had the big block as a window
display, but it had been previously arranged
to place it with the B. B. Fuel Company after
the convention. ,
Q. E. Browning represented the Thompson
Burton Company of Chicago.
C. E. Hostler came up in the interests of
The Globe Coal Company.
“Ernie” Pratt, northwestern sales agent of
the Purity Coal Company, was in attendance.
“Ernie” was the recipient of many flattering
comments on their exhibit. This company also
passed around souvenirs in the shape of paper
weights.
The Gifford Wood Company was represent¬
ed by Otto Thjomoe, who knows a whole lot
about coal pockets and coal handling machin¬
ery. Otto says that business is good with him,
and it is very evident that the coal dealers have
faith in the coming season from his report.
Cy Seymour, W. G. Scott and H. Muntinga
were here representing the C. Reiss Coal Com¬
pany. They made a gift to all present of a
very attractive coat watch chain which bore
the company’s trade-mark.
J. A. Vaughan, vice-president of The Clark¬
son Coal & Dock Company, came over from
St. Paul to greet the many friends and cus¬
tomers of the company.
M. A. Hanna Coal & Dock Company was
represented by T. V. Collins, while his
lirother, Frank Collins, took good care of the
Island Creek Company’s interests.
The Reeves Coal Company passed around
the cigars on the way out to Antlers Park, in¬
cidentally distributing a brief epistle on their
coals.
J. N. McCabe of the Lehigh Valley Coal
Sales Company came up from Chicago for the
convention, while Bell & Zoller were ably rep¬
resented by E. M. Du Rell.
The percentage of retailers present was
uncommonly large and the attendance at the
business sessions was quite satisfactory.
68
THE BLACK DIAMOND
[July 24
Men Prominent in the Coal Trade’s Eye.
Jerry Morrow.
Some time the latter part of June, Jerry Mor¬
row of Wellston, Ohio, rounded out fifty years
in the coal business. He is now nearly seventy-
two years of age and yet despite his years and
the length of service in the coal business he is so
young that the one thing for which he will dis¬
charge an employe is a refusal on the latter’s
part to keep abreast of the times and to use the
latest devices for the production of coal. This
one fact, supported by a number of incidents,
writes a character sketch of the man.
When he was a boy he associated with older
men in order to get
the advantage of
their ideas and to
get a dependable
point of view on
things. When he
became a man he
spent his time with
younger men that
he might hold ever
a fresher view of
life and keep him¬
self young by asso¬
ciation. Now that
he has reached an
age where he
might be consid¬
ered an old man he
is associating with
even younger men
that he may never
have a chance to
grow stale. As a
c o n s e q uence a
short time ago he
had a mine superintendent who was arguing
against the introduction of electrical haulage and
other modern appliances and found it necessary
to discharge him that the mine itself might be
brought up to the minute. At the time this oc¬
curred Mr. Morrow was a young man past sev¬
enty. The mine superintendent was an old man
under forty.
The career of Jerry Morrow has been as inter¬
esting as it has been full of activity. He was
born at Chillicothe, Ohio, October 18, 1843.
He had passed through the primary schools and
was in Miami University in 1863 when he quit
that to enter the three months’ service of the
army in the War of the Rebellion. At the end of
three months’ service he returned to school only
to quit that and join the navy, where he was
attached to Admiral Porter’s flagship “The
Cricket.” In that service he passed through the
Red River campaign from start to finish.
At the conclusion of the war in 1865 Mr. Mor¬
row returned to Jackson county, Ohio, where he
accepted a position as weigh-master to the Cincin¬
nati Furnace Company and in 1869 became super¬
intendent of the Petra mine in Jackson county.
This was the first mine to ship coal out of that
district.
In 1873, which was the year of the great finan¬
cial panic in America, Mr. Morrow decided to
enter the coal business on his own account and
opened a mine on Federal Creek in Athens coun¬
ty, Ohio. He had gotten together all the money
that he could command personally and could bor¬
row from his friends and associates and this, it
seems, was swallowed up in the disturbance in¬
cident to the period of depression. It took, how¬
ever, some time for the forces of destruction to
exert themselves.
In 1881 Mr. Morrow returned to Jackson county
as a practical man in charge of Horace L. Chap¬
man’s mines. He was superintendent and in that
capacity opened every mine that the Chapman
Company developed at that time.
At the conclusion of this service Mr. Morrow
accepted a position as commissioner of the Jack-
son county, Ohio, Operators’ Association. He
was there for seceral years.
After that he accepted a position as secretary
of the Ohio Wholesale and Retail Dealers’ Asso¬
ciation. That was at the inception of the move¬
ment which has now grown into the Michigan-
Ohio-Indiana Coal Association. While in that
particular position he increased the membership
from 112, where it was when he started, to 850,
and made it, of course, one of the strongest asso¬
ciations in America.
In 1906 and 1907 Mr. Morrow returned to the
Jackson County Operators’ Association as com¬
missioner and remained there until its affairs were
investigated by the United States court and the
officer of that court advised that it would be the
best plan for the organization as it then existed
to discontinue.
In 1907 Mr. Morrow left Ohio and went to the
northern Peninsula of Michigan, where he dis¬
covered a deposit of iron ore and opened the
Spring Valley Iron Company which was one of
the largest mines in that district and which ulti¬
mately was sold out to Eugene Zimmerman and
J. C. Cluetts.
Selling Coal in Summer.
Almost every retail coal man looks upon
the winter as his best season, yet the Tan-
nersville Lumber & Coal Co., of Tanners-
ville, N. Y., sells more coal in summer than
It does in winter. The reason for this is,
that Tannersville is a summer resort with a
population of about 1,000 during winter
months, and of about 10,000 during the vaca¬
tion season. All the collecting is done during
August when money is most plentiful.
A photograph of the company’s pocket and
a portion of the yard is shown herewith. The
modern coal pocket was built two years ago
and is of 1,000 tons capacity. The pocket
is divided into five bins of 200 tons capacity
each, and under each bin is a driveway ten
feet wide, with chutes along the sides to load
the wagons, or to bag the coal as desired.
These chutes at the same time screen the
coal thoroughly, so that the customers not
only get good clean coal with no dust, but
it is done mechanically, with no extra work
whatever. This feature alone is worth a
great deal to any retail coal dealer.
Even though the pocket has a flat bottom,
it retains very little unused coal, as in each
bin there are three wagon loading chutes, or
fifteen in all.
Another great advantage of the pocket is
its strong and rigid design, insuring long life
and a minimum of repairs. It is not built
like so many pockets with the two-inch plank
and studs, but is constructed of three-inch
tongue and groove planks, strongly held to¬
gether with buck-stays and the whole thor¬
oughly braced and rodded together.
The outside of all the pocket is covered
with drop siding, which not only keeps out
the weather, but presents a pleasing and neat
appearance.
The elevator machinery is of the double
roller chain elevator conveyor type, carrying
the coal from the steel boot onto which it
is dumped from the track hopper to one end
of the monitor of the pocket, from where it
is scraped horizontally, and delivered to the
different bins, for different sizes of coal as
desired.
The coal is lowered gently on the coal lad¬
ders (two in each bin), so that the coal never
drops more than twelve to eighteen inches at
any point.
At the present time Mr. Morrow is president of
the Wellston Colliery Company, of the Morrow
Manufacturing Company, of the Jackson County
Coal Club, and vice-president of the Hickory Ash
Coal Company of West Virginia. He is also
general sales manager of the Blue Jay Coal Com¬
pany, with mines in the Hocking Valley. He lives
at Wellston, Ohio.
There are but few men in America who at his
age are occupying so many positions which call
for the active work that these positions entail,
and who at the same time attack them with the
vigor of youth which he displays in everything
that he does.
This pocket was designed and machinery
furnished by the Gifford-Wood Co., of Hud¬
son, N. Y.
Coal and Dishes.
The selling of coal and dishes seems to be
almost as plausible as selling perfume and
bridges. Yet the Albert Johnson Coal Co., of
Minneapolis, are doing this very thing, in
their selling a forty-two-piece set of china
dishes to every purchaser of two or more tons
of coal. The Albert Johnson Coal Company
bought these dishes in carload lots and were
able to furnish them to their customers at
about one-fourth the cost of a similar set at
the retail stores.
The scheme proved a very effective adver¬
tising and selling scheme at first, but several
crockery manufacturers began selling this
ware to merchants in other lines, who offered
them at the same and lower prices, so that
the scheme grew too common.
The company’s proposition read as follows;
“We have just closed a contract with one
of the largest potteries in the country to fur¬
nish us with a carload of forty-two-piece sets
in the conventional design, same as on the
reverse side of this coupon, and five other very
attractive patterns, at a very low price, and
for the purpose of offering our customers an
inducement to buy our coal, we are going to
give you the benefit of our bargain.
“Remember, we are only giving you the
opportunity of buying these sets at exactly
what they cost us in carload lots, therefore
charge you nothing extra for the coal, nor
are we compelled to reduce the quality or
slight the preparation as we would have to do
if we were giving premiums.
“When you have accumulated tickets to
the value of two tons of coal, return them to
us, with $3.25 in cash, and we will give you
this beautiful dinner set.
“Each set is fully guaranteed by the manu¬
facturer and ourselves. You cannot duplicate
these sets for less than $8.00 if purchased else¬
where.”
The crockery manufacturer from whom
these sets were bought guaranteed the exclu¬
sive Minneapolis territory, and had not other
manufacturers invaded the city, the scheme
would still be an excellent business getter.
In the Field of the Retail Dealers.
New Coal Pocket of the Tannersville Lumber & Coal Company.
No. 4]
THE BLACK DIAMOND
69
Devices to Burn]jVolatile Matter.
By H. A. Atwater.
The difficulties encountered in burning bitu¬
minous coals increase as the per cent of volatile
matter increases. The principal causes of diffi¬
culty are as follows :
1. Combustion space too small to allow com¬
plete combustion of volatile gases distilled from
freshly fired coal before they are chilled by strik¬
ing the cold heating surfaces of the boiler.
2. Insufficient supply of oxygen to unite with
large amount of gases evolved from each fresh
charge of coal.
3. Supply of air may be properly proportioned,
but the combustion chamber, while possibly of
ample volume, may be so designed that the air
and gases are not properly mixed.
4. Length of travel of gases from grate to
nearest boiler heating surfaces so short that com¬
bustion is practically stopped as soon as gases
strike these cold surfaces.
Mechanical stokers by feeding coal to the
grates gradually permit of a uniform distillation
of volatile gases and hence are well adapted to
high volatile coals. Hand-fired furnaces, though,
are particularly troublesome when high volatile
coals are handled for the simple reason, in most
cases, that it is human nature to take the path of
least resistance. And, most firemen are human in
this respect. It is much less work to fire coal
infrequently and in large amounts than to fire it
in small and frequent charges, and there is no
question as to which of these two methods will
be pursued by the fireman if he is allowed to
take his choice, which is usually the case.
Combustible products which burn quickly must
of necessity give the point of highest temperature
nearer the grate than those which burn more
slowly, and consequently as the volatile matter
increases in amount this point of most intense
combustion or of highest temperature tends to
move away from the grate and nearer the heat¬
ing surfaces.
On account of this relation the owner of the
average hand fired plant should look for coal of
lower volatile matter as soon as he finds he has
to force his boilers. Or, if such a coal is not
available, some method of speeding up the com¬
bustion process must be put into operation.
Otherwise this point of most intense combustion
will tend to move so far from the grates that the
chilling effect of the heating surfaces will cause
a considerable loss in unburned gases.
The most direct remedy consists in improving
conditions of air supply and gas mixture. A
rapid and sudden distillation of gases follows the
throwing in of a fresh charge of coal and the
supply of air to the furnace should be greatly in¬
creased at this time in order to burn these gases
completely. There are devices now on the mar¬
ket designed to take care of this requirement by
allowing an excess amount of air to enter through
Fig. 2 — Showing the Staggering.
the firing door after a fresh charge of coal has
been thrown onto the grates, this excess air being
gradually cut off by means of a dashpot or some
other suitable arrangement.
A more intimate mixture of the gases and air
can be secured by means of mixing piers or walls
built in the combustion chamber, or by means of
steam jets.
Figures 1 and 2 show a type of mixing device
built on top of the bridge-wall. Figure 1 shows
the piers A, A on top of the bridge-wall, B, while
Fig. 3 — The Heine Boiler Setting.
figure 2 shows them in plan to indicate how they
are staggered. These piers or walls can also be
built in the combustion space back of the bridge-
wall, but none of them stand up very satisfactor¬
ily under the intense heat to which they are sub¬
jected.
In the case of a plant where the boilers are not
pushed hard some such construction as that indi¬
cated in figures 1 and 2 would probably prove a
wise investment and possibly a necessary one in
case a high volatile coal had to be used. But, it
would be difficult to attempt to maintain such a
mixing construction under a boiler which was
worked hard. For such a condition of a boiler
driven hard on high volatile coal resulting in a
very high furnace temperature, the use of steam
jets constitutes about the last resort; that is, if
they are properly used.
Steam jets are far from being fool-proof, and
as installed in most plants they are either not
used at all or are turned on altogether too long.
Unless their operation is carefully regulated,
either automatically or by an intelligent fireman,
they will increase rather than decrease the fuel
bill, and if the owner can not obtain this proper
regulation, he had better throw them out and try
to obtain a coal lower in volatile matter.
In all cases, though, of high volatile coals the
higher the volatile matter the more frequent and
smaller in quantity should the firings be.
Figure 3 is an outline of the standard setting
of a Heine boiler, which is a well known make
of horizontally baffled water tube boilers. The
foregoing remarks can be applied to a Heine set¬
ting just as well as to a return tubular setting.
But, in addition the choice of the kind of tile
Fig. 4 — Verticle Baffles.
forming the roof over the furnace affords an¬
other opportunity to change the conditions which
affect combustion and efficiency. The figure
shows a “C” tile roof (Figure 1 also shows a
“C” tile roof) but “T” tile can be used just as
easily.
The existence or non-existence of stringent
smoke ordinances has a great deal to do with the
choice between these two tiles. The “T” tile roof
usually gives the higher overall efficiency princi¬
pally due to the fact that it allows the lowest
row of tubes to absorb a considerable amount of
heat by radiation, which is not possible with a
“C” tile roof. However, the “T” tile roof subjects
the furnace gases to the chilling action of the
supporting tubes and there is consequent dange#
of more or less smoke in the case of boilers
pushed hard on high volatile coal. In case such
a plant is subject to a stringent smoke ordinance
its owner would probably either be forced to use
a lower volatile coal or replace the “T” tile with
“C” tile.
The present more or less standard setting for
vertically baffled water-tube boilers, particularly
that of the B. & W. boiler, is the outgrowth of a
setting originally designed for the higher grade
low volatile eastern coals. It is very satisfactory
when used with such coals, but it usually gives
trouble when high volatile coals are burned. The
chief causes of trouble are an insufficient volume
of combustion space in the furnace and too short
a distance of gas travel before the gases strike
the tube surfaces.
Figure 4 is an outline of a standard setting for
this type of boiler. This setting is all right for
low volatile coals but an owner located in a dis¬
trict where only high volatile coals are available
would doubtless increase the overall efficiency of
his plant by making a change from vertical to
horizontal baffles as indicated in figure 5. This
figure shows a two-pass baffling, but the addition
of another baffle to give three passes has shown
still further gains in efficiency. The two-pass
baffling would probably be better adapted to the
plant compelled to operate its boiler equipment
well above the normal rating, while in the case
of boilers not driven hard the cheapest steam gen¬
eration would follow the installation of the three-
pass baffling.
In the foregoing discussion, several different
types of boilers have been mentioned, but the
general relations between accepted features of
furnace design and the per cent of volatile mat¬
ter, whether high or low, can be applied to prac¬
tically any type of furnace, and the steam coal
buyer will greatly simplify his job of choosing a
proper coal if he will satisfy himself of the broad
api)lication of these principles by an intelligent
reading of what has gone before.
70
THE BLACK DIAMOND
[July 24
PTTBZiXSKED EYEST 8ATTTBDAT BT THE
BI.ACK DIAUOm) COUFANT.
Subscription price, $8.00 per year, postage prepaid, to
any postofiice in the United States. _ Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BIiACX DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1602 Oliver building.
Saturday, July 24, 1915.
INDEX.
Special Articles.
Page
Traffic Bureau Formed at Minneapolis . Cl
Meaningless Contracts — The Cost to the Trade . 64
Miners’ Remittances . 64
Nev; Coal Companies . 65
Pittsburgh-Buffalo Company .Sold . 6.5
Ohio Coal Rate Agitation . 65
Tlie First Roberts Ovens . 65
Coal Dust Tests by Bureau of Mines . 66
Eighty Per Cent Clause in Fire Insurance Policies... 66
.\nnual Joint Field Meet . C6
Men Prominent in the Coal Trade’s Eye . 68
In the Field of the Retailers . 68
Devices to Burn Volatile Matter . 09
Editorial . 70
News Local to Chicago . 72
Small Activities . 72
Facts Which Determine Our Export Prospects . 73
Wagon Gear Concern . 15
Market Reports.
General Review and Chicago . 74
Pittsburgh, Birmingham, Louisville and Omaha . 75
Cincinnati and Toledo . 76
St. Louis, Indianapolis, Detroit and Twin Cities . 77
New York . 78
Philadelphia and New England . 79
Buffalo, Baltimore and Denver . 80
Hocking Valley . 15
Stealing Thunder.
In other days, when one man appro¬
priated unto himself an idea advanced by
another it was called “stealing the other
man’s thunder.” Even then it was not
considered exactly a gentlemanly thing
to do. Still it was considered more as a
moral than as a financial offense. In these
later days, however, the whole process
takes on a slightly different aspect. It is
equivalent today to a theft of money.
For one thing, we are hearing much
these days about the idea that “thoughts
are things.” Tliis is not only accepted as
a metaphysical doctrine hut as a fact in
business. This is so because so many
men make a living today off their ideas
alone. For example, there are the poli¬
ticians, doctors, preachers, lawyers, writ¬
ers, engineers and efficiency experts.
These men have nothing to sell hut their
ideas. Their thoughts constitute their
stock in trade. It is beginning to be
rather a serious offense to steal another
man’s ideas, because that robs him of his
living.
Ami yet, the theft of thoughts is a com¬
mon practice in business. An engineer¬
ing concern, for example, who employs a
practical young inventor, thinks nothing
of taking his biggest and best ideas and
patenting them in its own. The head of
a department in a business thinks nothing
today of appropriating the ideas of his
subordinates. He may be on a salary the
same as they are, but the fact that he
draws the larger salary is assumed to
justify him in the act of taking what they
created. We even have men in the coal
business who will “borrow” an idea and,
at the end of the day, claim it as their own.
To steal a thought is an easy thing be¬
cause it is not patentable, and, unless re¬
duced to written form, it is not possible
to copyright it. In fact, you can not copy¬
right an idea but merely the manner of
expressing it. Thus to steal a thought
is perfectly easy and has no legal conse¬
quences.
However, there is a moral obligation to
recognize the rights of others even with¬
out a specific law upon the subject. Com¬
mon decency suggests that, in these days
Avhen men are making a living off their
ideas, it is improper to steal another man’s
thunder. Especially is this so since it
may be taking away his source of revenue.
Jerry Morrow, past seventy and a coal
man for fifty years, had to discharge a
superintendent of forty because he was
an old fogy. Thus whether Osier is right
or wrong depends upon the man.
Railroad Perversity.
A short time ago, the president of
nearly every important carrier in America
stultified his company and put himself in
a humiliating position when he went be¬
fore trade bodies, legislative bodies and
other organizations and begged that the
railways be left alone for a while. A pitia¬
ble spectacle was thus presented to the
public. It was one which added no dignity
to American business when these sup¬
posedly representative business men ap¬
peared as common beggars, pleading that
they be given something which they had
not earned. On the contrary, it sickened
the whole people.
What they got — and what they earned
— was the ridicule of the American press.
They earned it because, in a train made
up of private cars, they went to Washing¬
ton to plead poverty. They earned it be¬
cause they said that the twenty-eight to
thirty per cent of their gross receipts
which was left as the compensation of
capital was not enough. They wanted
more and begged for it.
One turns from this view which pre¬
sents the carrier as a whining supplicant
to another which presents the railway in
a different light. Several years ago the
National Industrial Traffic Eeague was
formed. It seems that “big business”
was being robbed systematically by the
carriers. In order to get justice from and
to avoid being despoiled by the railroads,
the larger companies had to add a traffic
manager to their official list. These traffic
managers had to band them.selves together
into a national organization as the only
effective way of overcoming the organ¬
ized cunning of the roads.
In the coal trade, a similar need for
self defense has been felt. The retail
dealers alone have been forced to band
themselves together into .something like
twenty different associations. The num¬
ber is increasing steadily. The major
portion of the work which these associa¬
tions do is in keeping the railways from
practically confiscating the coal business
by little tricks which take so much money
for transportation as to make retailing
unprofitable. In fact, the need to watch
the railroads, to keep them from stealing
the coal business, has become so great
that the Northwestern Retail Coal Asso¬
ciation decided finally to abandon its old
name and to appear hereafter as the
Northwestern Traffic Bureau. This
means that in future its life object will be
to see that carriers do not crush the re¬
tailer entirely.
In one picture we see the railroads
begging for consideration by the public.
In the other, we see the receivers of
freight banding themselves together to
protect themselves against the railroads.
Does the latter explain why the former is
necessary?
Our opinion is that the carriers would
have less need to beg if the users of rail¬
roads had less need to protect themselves
against injustice. If the railroads .want
consideration, they can get it if they will
earn it by being a little more decent and
a little less cunning.
Illinois and Indiana, driven to despera¬
tion by the condition of their business, have
tried to work out their own salvation
through co-operation. Their principal
effort was to get a profit by simplifying
selling expenses. Their experiment ap¬
pears to be a national sensation. Nearly
every other line of business is studying
their plans in hope of finding something
which they can use.
Northwestern Traffic Bureau.
The Northwestern Retail Coal Dealers’
Association has changed its name to the
Northwestern Traffic Bureau. Those
who drafted the new plan of organization
made it clear that they believe the mod¬
ern retail coal organization has outgrown
all meanings conveyed by the old word
“association.”
The old association was — let us be
candid now that conditions have changed
— in a certain sense a grafter on the trade
which it represented. That is, it took
money from the trade but it served very
little. Consequently, it earned very little.
In consequence, all the support it got, it
had to beg for. Most of the money paid
into it was wasted— mainly in an effort to
get in more money. The old association
spending money to get more money had
no time or energy left to give any value
for the $5 or $10 paid each year by its
members. On the contrary, most men
knew that their $5 a year was a useless
gift.
Today things are different. The asso¬
ciation supplies, in the person of the
secretary, a traffic manager for each retail
yard. He is competent to give all changes
in rates on coal ; he can collect claims for
overcharges and shortages ; he can even
collect bad accounts.
Also, under this secretary, the organi¬
zation is a clearing house for information.
One retailer learns what the others are
doing to solve little and big problems. In
addition, it acts as a sort of legislative
agent for all retailers. It even is begin-
ing to give the retailer expert legal advice.
It will, where there is a representative
case, undertake a lawsuit in his name.
Under the circumstances, the new or¬
ganization gives service to the value of
$100 or $1,000 in return for an annual pay¬
ment of only $10 or more. From a drain
No. 4]
THE BLACK DIAMOND
71
upon the retailer, the new association has
come to be his cheapest employe.
The Northwestern Traffic Bureau will
try to do these various things on a more
elaborate scale than others have dared
try-
The only fly m the ointment, as far as
it appears now, is that all of the proposed
service will not be paid for by the $10
fee; it cannot possibly be. For example,
there will be a commission for the collec¬
tion of claims; this ranges from ten to
fifteen per cent. Also, in case of litiga¬
tion, the legal department will have to
employ associate counsel on a contingent
fee.
It remains to be seen whether dues plus
commissions and contingent fees will en¬
able the retailer to get that work done
cheaper than he can in another way.
Even though, however, it costs the same,
it will probably be done better because
the same money will buy skilled rather
than uninformed servants. Thus the re¬
tailer will get an advantage, after all.
A man is valuable only because of his
ideas. To steal his ideas merely because
they cannot be put under lock and key or
cannot be patented or copyrighted is im¬
moral. In fact, it is brigandage more of¬
fensive than the mere theft of money. It
takes away a big part of his capital.
Successor to Dr. Holmes.
The death, last week, of Dr. Joseph A.
Holmes, director of the Bureau of Mines,
caused discussion of the selection of his
successor. President Wilson will name
the man.
Two men are mentioned in current
gossip — H. Foster Bain and James F.
Callbreath. Dr. Bain was formerly state
geologist of Illinois and more recently
was editor of the Mining and Scientific
Press of San Francisco. Mr. Callbreath is
secretary of the American Mining Con¬
gress.
If either of these men want the job we
will endorse them cheerfully for they are
both clean, fine specimens of American
men. But since we are so fond of both,
we would advise neither to accept the
appointment. The job is a man killer, as
the experience of Dr. Holmes indicates.
The facts of the matter are these : The
country has a wealth of natural resources
never equalled in history, and the gov¬
ernment knows it. America — Russia is
the only possible exception — is the only
nation which has ever had within its own
borders enough of everything to support
both the necessities and the luxuries of its
people now and for generations.
But, America is wantonly extravagant.
It is digging up and wasting more things
— and faster — than any nation has ever
done. In consequence, when it is still an
infant, America forsees the time when
some of its most precious natural re<-
sources will be gone.
To stop the waste by interposing prac¬
tical conservation, the nation created the
Bureau of Mines. It is a small subdivi¬
sion of the Department of the Interior,
yet it was told to reverse at once the
natural tendency and dispositions of
100,000,000 people. To do this giant’s
work, congress gave this puny bureau an
appropriation about enough to pay the
expenses of a park board in a medium¬
sized city. It employs about as many
men as would police a somnolent village
in a peaceable community. These men
are expected, with practically no money,
to undertake and to carry through the
Herculean task of reversing the national
thought and practice on resources.
For any one man — -working with
assistants, all of whom arc under civil
service — to try to carry out the big pur¬
pose of the bureau is to attempt something
which invites his physical destruction.
That was what Dr. Holmes did. Unless
human nature changes soon and unless
congress becomes more liberal that will
be the fate of his successor — if he is con¬
scientious. Under the circumstances, we
may be willing to endorse either Dr. Bain
or Mr. Callbreath if they want the job.
But, candidly, we would advise neither of
them to take it.
It does no good to talk costs unless you
propose to use the figures to cut the cost.
The Ash in Coal.
If the theory of geologists and scien¬
tists is correct, it is hard to understand
why we have so little ash in coal. In
fact, the relative freedom of coal from
ash has led a selected few persons to be¬
lieve that the geologists’ theory about how
coal was formed is not the right one.
It will prove interesting — even if no
good comes of it — to cite a few facts and
see where they lead. Scientific men say
that the deposit of “star dust’’ on the earth
amounts to the fraction of an inch per
year. This is supposed to arise from the
appearance of meteors, which burn the
instant they strike our atmosphere. Their
ashes gives us the “star dust.”
In dry weather great quantities of dust
will be picked up from desert places and
moved by the wind to other sections. Its
flight is checked by vegetation. In the
end it falls to the ground.
In early days, so geologists say, glaciers
moved, carrying with them vast amounts
of dirt which they deposited.
The geologists say that it took, origi¬
nally, 10,000 years to grow the vegetation
which was finally condensed into a foot
of coal. Tliey say that what is now a
foot of coal was originally 100 feet of
vegetable matter. Therefore, a six-foot
vein of coal required 60,000 years to
develop ; originally it was 600 feet thick.
If the geological theory is correct and
if the “star dust” theory of scientists is
correct, in those 60,000 years we must
have had, over those incipient coal veins,
quite a considerable deposit of “star dust”
plus a mixture of sand, etc., with the
vegetation. In addition, the glaciers would
probably have added some dirt.
If all this dust was deposited among
the vegetation which ultimately made up
the coal vein and if it fell along with the
leaves, what became of it when the vege¬
tation was being ripened into coal? Did
ordinary dust and dirt change character
and become coal? Is it possible that so
little of it was deposited in those 60,000
years that it constitutes only four to eight
or nine per cent of our coal?
If the geologic and scientific theories
are correct, then the wonder is not that
we have so much ash but that we have
■SO little. Of course, it is possible that the
geologic theory as to the formation of
coal is, after all, not correct.
The New Seamen’s Bill.
The last congress passed the new sea¬
men’s bill, which will go into effect on
November 4th. The avowed purpose of
this new law is to improve the working
conditions of sailors and to increase the
safety of ocean travel on American ships.
The law does not consciously seek to
procure the destruction of our merchant
marine. Nevertheless, compliance with
its provisions increases the cost of operat¬
ing ships so much that the effect is in¬
evitable.
This is embarrassing. America is strug¬
gling to build up a merchant marine. Yet
every man who wants to build and oper¬
ate a ship must first raise enough money
to pay for it. There he strikes his first
handicap. He wants to operate it under
the American flag. Therefore, he wants
to build it of American material in an
American shipyard, with American labor.
The American laborer is paid more than
the ship builder in England. The Ameri¬
can ship material is protected by a tariff
which permits a profit of from 50 to 100
per cent, which makes it cost far more
than does English steel. The cost of
construction, on these two accounts, is
about fifty per cent higher than is the
English cost.
The vessel, when off the ways, must
be manned by American seamen. We
have no seagoing class. Consequently the
sailors must be drawn from other indus¬
tries. They expect the same pay at sea
that they get on shore. Lest any able
seaman, in an unguarded moment, con¬
sent or bargain to work for what the
vessel owners think they can pay, the
seamen have been organized into a union.
That union fixes the wages for all classes
of workers.
This seamen’s union, which heretofore
has operated mainly on the Great Lakes,
persuaded Senator LaFollette to introduce
the aforesaid seamen’s bill. It provides
that each ship shall employ more of these
high-priced men than are employed on
foreign ships. It goes even further. It
assures every man who takes employment
on a vessel that he may quit whenever
and wherever he pleases. He may ship at
Baltimore and quit at a Chinese port And
the owner of the vessel must not only
arrange to get him back home, but must
employ another American sailor to take
his place. That is fine ! American sea¬
men who are looking for a berth are
always plentiful in China, you know.
In addition, the vessel must be equipped
with expensive safety appliances.
After having been subjected to all of
this expense, the American navigator
must pay, while passing through an
American canal, built with American
money, precisely the same tolls as are
paid by cheaper ships operating less ex¬
pensively, because coming from other
countries where the laws are not so exact-
Our merchant marine is a sickly infant.
Yet our fool government overburdens it
and then asks it to lead America out of
a perfectly hopeless condition of foreign
trade into which it has fallen through fifty
years of maritime inaction.
If there is anything more idiotic in
America than the LaFollette Seamen’s
Bill, it is the belief that we can build up
an American merchant marine under such
conditions.
72
THE BLACK DIAMOND
[July 24
News Local to Chicago.
E. D. Scott, of the Skeele Coal Company, in
the Old Colony building, is a grandfather this
week.
Maxwell S. Green, formerly with Armour &
Company, has been appointed credit manager of
the Consumers Company.
Ed. Qualkinbush, vice-president of the Wasson
Coal Company, spent several days of this week at
the company’s Harrisburg mines.
Col. M. T. Roach of the Logan-Pocahontas
Coal V.ompany of Charleston, W. Va., was in
town the early part of the week.
J. A. Beardslee, Chicago manager of the Con¬
solidation Coal Company, is spending the week
end with his family at Beaver Lake, Wis.
Among the week’s visitors in Chicago were
C. A. Schoessel, an operator of Rock Island,
and J. A. Devoy, representative of the Ohio &
Michigan Coal Company of Detroit.
Charles Gilmore and G. W. Solomon of Gil¬
more & Solomon Coal Mining Company mo¬
tored from Chicago to their mines, located in
Central Illinois, the early part of the week.
F. Gascoigne, manager of the Chicago office
of the Edwards & Bradford Lumber Company,
has gone to northern Michigan for a couple of
weeks. This is the first vacation Mr. Gas¬
coigne has taken in the four years he has been
in charge.
F. Van O’Linda, field sales manager of the
Consolidation Coal Company, is spending a few
days in the Chicago office. Mr. Van O’Linda
has the distinction of being the only technical coal
salesman in the trade who devotes his entire time
to the malleable iron coal business.
Chas. 1. Pierce, president of the Saline County
Coal Company has awarded a contract to the
Roberts & Schaefer Company for the installa¬
tion of a Marcus patent coal tipple at the Harris¬
burg Illinois mines of this company. Two mod¬
ern bath houses will also be erected at an early
date.
Among the Chicago delegation that journeyed
to Buffalo last week to participate in the Roberts
Brother’s picnic were C. D. Caldwell, Chicago,
manager of the By-Products Coke Corporation ;
E. M. Mancourt, western manager of the Consoli¬
dation Coal Company; H. J. Elliott, H. M. Plall,
J. B. McCahey, W. Fitzgerald and Clark T. Rob¬
erts.
Mrs. Dorothy F. Daly, wife of William H.
Daly, sales agent for the Consolidation Coal
Company, died of heart failure at her home, 5920
Kenmore Avenue, July 17. Mrs. Daly was born
in Champaign, Illinois, the daughter of Mr. and
Mrs. William Munhall of that city. The funeral
was held July 19 from St. Ita’s church. Burial
took place at Calvary cemetery.
Alfred Ogle, president of the Vandalia Coal
Company and also president of the new In¬
diana Coal Sales Company, was in Chicago
on Tuesday of this week. He came in to at¬
tend, among other things, the hearing of the
Trade Commission, which went into some
phases of the lumber business on Monday and
then devoted some of its attention to the coal
business on Tuesday.
Charles W. Jackson, of the F. G. Hartwell
Company, who lives at Wilmette, had an addi¬
tion to his family last week. He and Mrs.
Jackson adopted a girl three months of age
and his friends in the trade have suggested this
week that this is a very clever method which
he has taken to add twenty years to his life
as the association with the young lady is ex¬
pected to keep him young.
There is a pretty well confirmed rumor on
the street this week to the effect that Franklin
county coal prices will advance on the first
of August to .$1.60 a ton for lump, egg and
No. 1 nut and $1.40 a ton for special stove.
No circulars to this effect have been put out,
but the understanding is that the salesmen of
some of the larger companies have been in¬
structed to name those prices for delivery
during the first fifteen days of August.
Word came out of the office of Olson & Van
Allen, retail dealers on the south side, this
week, that a new partner was admitted to the
firm on Tuesday. The new partner will not
be active in the business for some twenty-one
or twenty-two years, but while inactive he is
not a silent partner. His last name by inherit¬
ance is Olson, but the first name has not yet
been given. A further announcement was that
Charles A. Olson, the president of the com¬
pany, was absenting himself from business
celebrating the event and that the mother is
doing well.
James F. Callbreath, secretary of the Amer¬
ican Mining Congress, stoppd off in Chicago
on Tuesday and Wednesday of this week on
his return from Denver and San Francisco.
He left the latter part of the week for Pitts¬
burgh and Washington, intending to remain at
the latter point until he has to go west again
to make final arrangements for the convention
of the congress, which this year is going to be
held at San Francisco. He says that every¬
thing in connection with the congress is mov¬
ing satisfactorily, with every promise of a big
meeting this fall.
The Roberts & Schaefer Company have volun¬
tarily relinquished control over the Holmen
patents relating to locomotive coaling plant equip¬
ment. Two years ago this company obtained con¬
trol of an improved design of elevating machin¬
ery which while retaining all the advantages of
their previous equipment under the Holmen pa¬
tents entirely eliminates the bucket hatches, clos¬
ing springs and tippers required by those pa¬
tents. The results obtained after two years oper¬
ation by many representative plants warrants the
Roberts & Schaefer Company in making this
form their standard which they will hereafter
employ in all locomotive coaling stations designed
and built by this company.
Henry E. Patrick, general sales agent of
C. M. Moderwell & Co., returned the first part
of this week from a ten days’ trip to Lake
Gogebic, which is about 400 miles north of
Chicago and within twelve miles of Lake
Superior. Before he went away there was a
lively little tilt between him and Frank Brown¬
ing of the Purity Coal Company, the subject
matter of which was, who was the better fisher¬
man of the two. Mr. Browning entertains the
idea that he is the star fisherman in the coal
trade and looks upon Mr. Patrick as some¬
what of a novice. The latter, however, is will¬
ing to take up any kind of a challenge and to
prove to Mr. Browning that there are other
fishermen in the west he sent to Chicago last
week one box which contained three fish, each
weighing a minimum of eight pounds. As a
matter of fact, the catch of fish was quite con¬
siderable and in the ten days the average
weight of the fish caught was between four
and five pounds.
The Consolidated Indiana Coal Company
was this week placed in the hands of a re¬
ceiver. S. K. Smith, the mining engineer of
St. Louis, was appointed as receiver of the
company. The action was taken, it is said,
because the company was forced to default on
the payment of its interest on the bonds and
payment of a sufficient amount to the sinking
fund. The bonds of the company aggregate
$2,000,000. It is said that no other debts are
outstanding against the company. The Con¬
solidated Indiana Coal Company owns about
24,000 acres of coal land in Illinois, Indiana
and Iowa. It has five mines in operation in
Indiana and one in Iowa. It owns 6,600 acres
of coal land in Franklin county, Ill., which
have not been developed. Speaking of the
receivership, Carl Scholz, who has been presi¬
dent of the company, said: “This action gives
point to the statement which I have so often
made in public and in print that the coal busi¬
ness of Indiana and Illinois is in serious need
of some kind of help and is not being con¬
ducted on a paying basis. The properties are
good and are economically operated, but they
have not in these times been earning enough
to pay interest on what is a moderate bond
issue for property of this size.”
C. A. Eastman, of the Eastman-Barber Coal
Company, received word this week from Com¬
missioner McChord of the Interstate Com¬
merce Commission that the time limit on the
suspension of the increased anthracite rates
to Chicago has expired without a decision of
the commission on that question and therefore
the higher rates became operative on July 17,
automatically. That is, the coal moving into
Chicago on and after July 17 carries an in¬
crease in rate of twenty-five cents a ton. It
will be remembered that this case has been up
for several months. The first railroad to in¬
crease the rates was the Pennsylvania. The
others followed. The action was contested be¬
fore the commission on two occasions and all
of the evidence and briefs are now in the hands
of the commission. It had suspended the ad¬
vance in rates twice, but the second suspen¬
sion expired before the commission reached
its decision. Just when the decision will be
handed down is not known, but in the mean¬
time the rates are now in effect. The anthracite
companies say that they have enough coal on
hand now to take care of orders up to the first
of August and that there will be no increase
in prices prior to that time. Whether anthra¬
cite prices will rise on August 1st to take care
of this advance is not known.
Commissioner Kendall, of the Chicago Coal
Merchants’ Association, received word this
week that the Interstate Commerce Commis¬
sion had handed down its decision on the
spotting charge case. The summary of the
decision is printed below. The full decision
will be printed in this paper next week. “1.
Tariffs proposing a ‘spotting charge’ for plac¬
ing cars for loading or unloading at con¬
venient points on the tracks of industries spe¬
cifically named in the tariffs found not to be
justified, for the reason that the proposed
charge would apply in many cases to services
covered by the line-haul rate, and also for the
further reason that to impose the additional
charge upon the industries named in the pro¬
posed tariffs and not upon other industries for
which like services are performed would re¬
sult in unjust discrimination. 2. The line-haul
rate covers the customary movement of cars
over industry tracks incident to the receipt and
delivery of carload freight at convenient points
on those tracks for loading or unloading with¬
out regard to the size or complexity of the
industry, and the points at which the cars are
to be placed by the carrier for that purpose
without additional charge are to be deter¬
mined by general usage. 3. The line-haul rate
covers only one placement of a car upon an
industry track for loading or unloading, and an
additional charge should be made for each
additional placement of a car for that purpose,
as also for the movement of cars from place
to place within the plant during the processes
of manufacture.”
Small Activities.
Twin City Locals.
The W. S. Bogle Mining Company, has ap¬
pointed R. L. Hancock as sales agent in this ter¬
ritory with headquarters in Minneapolis.
George C. Chapman, formerly with the Taylor
Coal & Coke Company, Chicago, has become iden¬
tified with the Clarkson Coal & Dock Company of
St. Paul, as traveling salesman.
George M. Space & Company, have opened of¬
fices at 433 Lumber Exchange, Minneapolis, _ as
wholesale distributors of coal. It is the intention
of the new firm to handle cargo coal via the
great lakes and engage in the general jobbing
business.
James Rend, northwestern sales agent of the
Buchanan Coal Company, has resigned, effective
July 31, and will remain in the northwest en¬
gaging in another line of business. It is under¬
stood that the office of the Buchanan Coal Com¬
pany will be retained, and that Mr. Rend’s suc¬
cessor will be appointed within a short time.
Detroit Local News.
James DeWolfe, district sales agent in Detroit
of the Pittsburgh and New Pittsburgh Coal corn-
panies, has returned from an extended trip
through central Ohio.
Charles Dunn, formerly with the New River &
Ohio Coal Company, has opened an office at 1209
Majestic building, Detroit, where he will handle
the Logan Pocahontas products.
Members of the Detroit coal exchange are fol¬
lowing with interest a series of baseball matches
between teams representing wholesale and retail
dealers for a silver cup 14 inches high, put up
as a prize by James A. Ballard, general sales
agent of the Semet-Solvay Company and re¬
cently elected president of the National Coal As¬
sociation. The trophy goes for one year to the
team winning the greater numj)er in seven games.
The retailers now have three victories and the
wholesalers one.
Sam Reynolds of the firm Allen & Reynolds
Company, Omaha, is putting Omaha on the map
at the golf tournament in Cleveland, Ohio. Sam
has the best wishes of his many friends and we
hope he will succeed in landing some of the
honors.
No 4]
THE BLACK DIAMOND
73
Facts Which Determine Our Export Prospects.
The Export Situation.
While the movement ot export coal through
Baltimore is not so heavy as it was during June,
yet taking together the cargo and bunker require¬
ments, tonnage is showing up remarkably well.
For instance last week, 57,846 tons of cargo were
exported, and steamers taking this cargo took
23,352 tons of bunkers. The increased require¬
ment of bunkers on the part of these vessels, prin¬
cipally those going to the Mediterranean, was held
due to the Welsh miners’ strike, and the fear on
the part of the ships’ captains that they would
not find bunkers readily on the other side.
From Hampton Roads, shipments continue to
show up well, running approximately 150,000 tons
per week, which would mean approximately 600,-
000 tons for the month, providing there is no
slump during the remaining days of the month.
Bunkers’ requirements at Hampton Roads also
show up in larger volume, although not showing
the radical increase as in the case of Baltimore
as referred to above.
Philadelphia is also exporting considerable coal
this month, so that on the whole the three Atlan¬
tic tidewater shipping ports will probably make a
very good record, though it is not expected to
reach a million ton mark that was made in June.
Some new business was closed due to the strike
of the Welsh coal miners, and had this continued
for another week, no doubt a great many orders
would have been received on this side for prompt
shipments. Local coal men do not believe that
very much Welsh coal will be sent to neutral
countries from this time on, and that South
America especially will have to look to the United
States for coal requirements for the next few
months at least. It is believed that the British
government came so close to facing a serious
coal shortage that they will from this time on be
very strict about licensing exports to neutral coun¬
tries, it being understood that the restriction order
issued more than a month ago is still in force.
This restricted exports to British provinces, and
to the allies exclusively, though licenses were
granted under certain conditions for cargoes to go
to neutral countries.
Supplies of coal are plentiful at all the ports,
the New River and Pocahontas coal being pretty
firmly held around $2.80 and $2.85 for prompt
loading, with Quemahoning coal available at Balti¬
more at $2.45 and 2.50 for prompt loading, good
grades of Pennsylvania coal at Philadelphia at
$2.40 and upward.
Vessel rates are some easier, as will be shown
by the special reports on vessel freights elsewhere
on this page.
It is understood that one New York house se¬
cured a fair contract this week for coal to be
shipped to Sweden.
Comparison of English Exports.
The table of exports of coal from Great Britain
for June, 1915 and 1914, and comparisons for the
first six months of this and last year will prove
very interesting to the American coal man who is
now making a study of the export situation.
An analyses of these shipments show that for
June, 1915 exports fell off 2,361,543 tons from
June, 1914, when they reached 5,999,417 tons.
For the first six months of 1915 exports de¬
clined 12,771,733 tons. This decline represents
just about four times the total tonnage of bitu¬
minous coal exported over the Atlantic seaboard
ports for the first six months of the year.
It is worth while to note the amount of coal
exported by England to South American countries
during June just past. It is not fair to make
comparisons with June of last year because that
was some two months before war was declared
and consequently comparisons at this time would
mean nothing. Furthermore the restriction of
shipments in June this year, due to the order of
the British government, except upon special
licenses, kept exports down to the minimum.
Taking up the South American countries, we
find that in June England shipped 140,172 tons to
Chile, Brazil, Argentina and Uruguay, as com¬
pared with 446,559 tons for June, 1914. For the
first six months of this year English exports of
coal to these countries totalled 1,539,774 tons as
compared with 3,245,981 tons for the first six
months of 1914, a decline of 1,706,207 tons. For
the first six months of this year, the United
States exported 851,138 tons to the South Amer¬
ican countries as named above.
England’s coal exports to Sweden, Norway and
Denmark for the first six months of this year
show up very favorably with the shipments for
the first six months of 1914.
Shipments to Erance show a very substantial
increase. This is largely accounted for by the
fact that the French coal fields are largely in
German occupied territory. Also Germany prior
to the war, exported a lot of coal to southwest
France, and this deficiency has been met by im¬
porting British coal.
It will be noticed that Italy took 3,068,374 tons
from England for the first six months of this
year, as compared with 4,633,077 tons for the
same period in 1914. This shows a loss of 1,-
464,700 tons. For the first six months of this
year Italy took 1,137,468 tons of coal from
America.
It is noticed that English exports to Egypt
slumped heavily, six months shipments this year
totalling only 685,796 tons as compared with
1,636,842 tons for the corresponding period of
1914. A part of this decrease can no doubt be ex¬
plained by tbe slump in the requirement for bun¬
ker coals at Port Said, due to the war. For the
first six months of this year, the United States
exported 75,000 tons to Egypt, the bulk of this
going to Alexandria.
English Coal Exports.
Exports of coal, coke and manufactured fuel
from the United Kingdom during June, 1914 and
1915, and the first six months of 1914 and 1915:
June
June
First six months of
Country —
1914
1915
1914
1915
Russia .
705,715
3,281
2,009,789
19,420
Sweden .
391,533
285,693
1,800,093
1,628,068
Norway .
152,058
202,877
1,247,501
1,359,295
Denmark .
219,991
281,255
1,389,551
1,537,240
823,978
4,202,651
Netherlands .
163,574
113,171
'872,526
762,209
140,565
880,366
France .
965,326
1,546,559
6,818,125
8,460,758
Portugal, Azores
and Madeira...
102,929
86,512
650,349
533,452
Spam and (Janar’s
253,377
125,248
1,756,681
1,046,031
Italy .
632,393
399,353
4,533,077
3,068,374
Austria-Hungary .
83,892
462,164
Greece .
66,664
32,446
374,132
219,489
25,514
156,720
Turkey .
60,'ll6
309,307
6,557
Algeria .
75,139
70,481
610,528
525,405
Port’g’e W. Africa
9,258
10,716
97,993
112,784
Chile .
34,035
13,297
302,205
35,430
Brazil .
135,821
32,040
727,128
341,270
Uruguay .
66,334
19,865
390,608
204,092
Argentine Rep...
210,369
74,970
1,825,940
958,072
Channel Islands..
10,036
7,590
76,853
61,117
Gibraltar .
14,526
32,218
170,629
190,066
Malta .
35,129
28,805
242,657
86,276
Egypt (inc. Anglo
Egypt’n Sudan)
211,818
65,864
1,636,842
685,796
Aden and depend.
5,708
28,777
85,569
89,179
British India....
12,800
50
110,802
12,160
Ceylon .
26,096
469
172,695
31,990
Other countries..
99,526
68,709
673,457
357,970
Total —
Anthracite . . .
205,686
138,499
1,360,242
1,014,668
Steam .
4,112,067
2,494,635
25,094,812
16,372,730
Gas .
993,284
653,578
5,739,845
3,613,003
Household . . .
139,430
77,974
742,440
512,445
Other sorts. . .
283,753
147,620
1,649,599
819,744
5,734,220
3,557,306
34,586,938
22,332,590
Coke .
73,163
52,713
517,609
419,709
Manuf’d fuel. .
192,034
115,404
1,044,360
624,875
Grand total .
5,999,417
3,725,423
36,148,907
23,377,174
Note.- — The figures in the above table do not
include Admiralty and certain other shipments.
Welsh Coal Strike Settled.
On last Thursday the Welsh coal miners
stopped work, approximately 150,000 men becom¬
ing idle. All the mines were shut down until
Wednesday of this week, a period of five days,
entailing a loss in production of upward of one-
half million tons.
The strike threatened to be very serious, and
it was due to the presence of David Lloyd George,
minister of munitions, in Cardiff on Tuesday, that
an early settlement was reached.
The terms agreed upon give the strikers a new
standard wage rate of five shillings ($1.20) a day.
This is the wage they originally demanded, and
was, as a matter of fact, in effect when the men
quit work a few days ago.
Eventually they will obtain as well a new mini¬
mum wage ten per cent in advance of the present
standard wage, but this will not become effective
for some time.
The agreement will stand for three years, or
during the period of the war, and for a period of
six months afterward. Subsequently it will re¬
main in force subject to a three months’ notice
by either the employers or the workers. The
agreement applies only to the men of the federa¬
tion, who are still to be subject to the penalties
prescribed by the munitions’ act if they strike
again.
The men have promised to work on the bank
holiday which falls on August 2, to overtake the
shortage caused by the strike.
Six Months’ Exports.
As stated in The Black Diamond last week,
the total exports of bituminous coal over the
Atlantic seaboard for the first six months of
this year, reached approximately 3,437,702 tons,
or within 767,298 tons of the total of the
twelve months of 1914.
It is interesting to note the destination of
this coal, and we present below a statement
showing tonnages going to the principal Euro¬
pean and South American countries for the
first six months of the year, these tonnages
being complete, with the exception of a few
cargoes from Philadelphia not yet reported. -
It is noticed that Italy receives upwards of
1,000,000 tons, whereas it is only two years
ago that Italy’s importation of American coal
per year ran under the half million mark.
South American countries received approxi¬
mately 851,138 tons during the first six
months of this year, whereas up to the out¬
break of the European war our total exports
to South America averaged around 500,000 tons
per year.
Exports for the first six months of this
year were as follows:
Tons.
Italy .
Spain .
Greece .
France .
Egypt .
Portugal .
Norway .
Sweden .
Holland .
Africa .
Canary Islands . . .
Morocco .
Java .
Azores .
Gibraltar .
Cape Verde Islands
Argentine .
Brazil .
Uruguay .
Chile .
Peru .
1,137,443
63,977
22,518
89,410
76,000
4,646
87,934
26,748
6,883
36,293
18,546
2,348
8,014
6,462
21,756
5,418
418,897
335,080
84,946
7,868
4,368
Export Trade Briefs.
A London cable dated July 18 says: “The
Weekly Dispatch says this morning that a German
commission of six members has arrived at Stock¬
holm, Sweden, to take up the question of obtain¬
ing cotton for Germany. This same newspaper
quotes a Copenhagen paper as saying that Swe¬
den has not received any coal from England for
a week and consumers cannot ascertain the cause
of the stoppage. It is said that in commercial
circles of Sweden it is believed that the order is
connected with the Anglo-Swedish commercial
negotiations, which are under way and these take
in the coal question. As a result of official nego¬
tiation, Sweden during the last few days has
bought $2,000,000 of coal from Germany, or equiv¬
alent to 600,000 tons.
Requirements of steamers taking cargoes from
.A.merican ports for bunker coal increased very
radically last week. For instance for the week
ending July 10, steamers taking export cargo coal
from Baltimore, took 7,382 tons of bunkers, and
approximately 55,000 tons of cargo. For the
week ending July 17, steamers sailing from Balti¬
more with 57,846 tons of export cargoes, took
23,352 tons of bunkers. Certain steamers took
about half as much bunkers as they did cargo. A
steamer to Spain taking 5,560 tons cargo, took
2,800 tons bunkers, one for France of the same
tonnage, an approximate tonnage of bunkers, a
steamer for Egypt taking 8,292 tons of cargo,
took 4,200 tons of bunkers. From Hampton
Roads, where 146,580 tons of coal were exported
for the week ending July 13, bunker require¬
ments were approximately 15,000. However, there
were several steamers taking cargo from the
Roads that took no bunkers whatever, evidently
coming over from the other side with coal as bal¬
last. Also there were three or four schooners
taking cargo, and these of course took no
bunkers whatever, .An explanation of the dif¬
ference of the ratio of bunker and cargo coal at
the Roads as compared with Baltimore, a great
many of the cargoes went to points in South
.America, whereas the bulk of the cargoes from
Baltimore went to the Mediterranean, where the
captains apprehended trouble in securing an ade¬
quate amount of bunkers to take them to their
next destination.
74
[July 24
THE BLACK DIAMOND.
General Review.
Chicago Market.
Buying Is Still Light in the Interior but
Some Improvement Is Shown in
Prices in Places.
Broadly speaking, the buyers of coal arc still
delaying putting any coal in storage against
the fall and winter needs. This applies par¬
ticularly to the retail dealers, but they are
governed altogether by a very similar action
on the jKirt of the householders. This has
gone so far that there is an element of danger
in the whole situation.
With the railroads in rather a poor physical
condition, and with cold weather prophesied
by even Government experts, the situation is
not one to contemplate with any degree of
equanimity.
Individually the various markets continue to
report extreme dullness. New York, for ex¬
ample, says that this is the dullest period for
anthracite, but that July is the dullest of all
the dull months. Production has been cur¬
tailed very sharply and still there is a ten¬
dency to a glut of the market. In bituminous
some users are contracting for a fair amount
of coal and shipments are heavier than they
have been. However, any spot coal goes beg¬
ging because there is no demand.
Philadelphia is far more concerned about
export business, which is improving, than it
is about local conditions. This is due to the
fact that there is business to be had in the
export field, but practically none at home.
That is, in anthracite and bituminous and m
the domestic and steam sizes, the local spot
demand is small, although there is a fair move¬
ment of coal on contract.
Boston shows a progressive slowing down
of coal buying. The market now is almost
a complete reversal of what it was six weeks
ago when conditions were fairly satisfactory.
Baltimore, which always is optimistic, is
still looking forward to better times in the
trade but is still confessing that present con¬
ditions are unsatisfactory. Its main depend¬
ence has been in exports, but the business
there has slowed down a little.
Buffalo is still concerned with shipments of
anthracite by lake, those for the week amount¬
ing to 119,500 tons. This was rather heavy
compared with recent shipments, but not as
heavy as it might be. In the bituminous field
orders are being placed with more freedoin.
Pittsburgh has been one of the interesting
points in the market for the last few months.
Kveryone has been talking about the upturn
in steel and what that would do for coal and
other trades. While the operators have had
great expectations there has not been much
realization of late. Sales to local mills are
fairly heavy. Coke business is satisfactory.
Some coal is moving into export and some is
going up the lakes. Still it is true that local
factories and those in the all-rail trade are not
taking as much coal as they should and the
same is true of the retailers. The depression
in the latter circles more than offsets the fair
business in other directions.
Louisville operators mourn the absence of
an expected upturn in business and the report
from that field is generally pessimistic on the
score of tonnage and price. Added to that,
labor difficulties are annoying the operators.
About the only satisfaction that Indiana
operators get out of life is the fact that prices
are firm, even though the volume of sales is
distressingly small.
In the western trade Chicago finds a steady
but not very large demand for western domes¬
tic fuels and a very limited and light demand
for the high grade coals from the east. On
the western coals the prices are advancing arti¬
ficially by about ten cents a ton on the first
of August. On some eastern coals there is
difficulty to maintain even the present prices
and some are quoted at quite a wide spread.
St. Louis is optimistic. The country demand
is much stronger and the operators are once
more getting a fair price for their product.
The Omaha report sums it up as follows:
General conditions have not been overly favor¬
able to the coal business as continued rains
and more or less hail have made the harvest¬
ing of the wheat crop uncertain.
A similar report comes from Minneapolis,
where it is said that coal orders have been
held back by wet weather, as the farmers have
not been coming to town and hence have not
been buying much coal.
Buying Is a Little Heavier and on West¬
ern Domestic Some Price Rises
Are Likely.
Office of The Black Diamond,
Chicago, July 23.
Domesfic coal iu Chicago is beginuing to move
with a little more vim than it has been moving
for some time and there is a suggestion here
and there of further advances in prices. These
are warranted first by market conditions, but in
the main are made out of consideration for the
season of the year and prospects which are im¬
mediately ahead.
Even so, the market in Chicago and through the
west is filled with contradictions which show the
whimsical character of trading. Some retailers
are buying coal and are paying the higher prices
for it. Others are not interested in either the
present or the future market, are storing noth¬
ing and are not anticipating a single demand on
the part of their regular customers. Some oper¬
ators are getting good prices ; others are still in
the center of a veritable fury of price cutting
which strangely enough seems to deliver nothing
in the way of business, prestige or advantage over
competitors.
The anthracite trade is still backward. Orders
are a little heavier than they were last week, but
they are not up to normal. Buying for immediate
delivery is fair, but mostly the coal had to be
forced on the retailers. Generally speaking, the
operators are not forcing much coal on the market
l)ut rather are shutting down the mines. Thus
the anthracite season is backward.
On the first of August the smokeless mine run
prices advances to $1.40 instead of $1.25. There
has been little buying to get coal while it is
still cheap. This week some wagers were made
that this coal would be selling at a premium of
ten cents a ton inside of the next two weeks.
Other wagers were made that mine run would
reach a price of $2.00 before tHe first of Septem¬
ber. Every one is discussing these prophecies
in an interested way, but apparently nobody is
taking any warning therefrom to lay in coal early.
In fact, a recent survey of most of the Chicago
yards reveals the fact that only one retail con¬
cern is stocked with Pocahontas to the limit of
his capacity. Many of them have no coal at all.
Others have far less than what is a normal sup¬
ply for this time of the year. Lump and egg coal
is firm on shipments direct from the mines at
circular price of $2.00 and spot coal is selling at
a premium rather than a sacrifice figure. Prices
up to Thursday were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . f3.30 $1.25
Lump and egg . 3.05 2.00
Somerset county producers are expecting big¬
ger demands a little later and this week got a
small increase in orders on the expectation that
prices will advance on August 1. Business, how¬
ever, is below normal for this time of year and
quotations up to Thursday were unchanged as
follows :
F. p. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@3.95 1.70@1.90
The harvest demand for Hocking coal improved
a little in Indiana and Michigan within the last
week and there was some increased business in
the all-rail territory to the west. Around Chi¬
cago, however, the trade is backward to an un¬
usual extent, a few retailers having put in as
much as ten per cent of the coal they normally
store prior to this time. Prices are artificially
firm at the old figure. Prices up to Thursday
were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
154-inch lump . $3.15 $1.50
Very little has happened to change the tone of
the splint market within the last week, good coal
selling at a fair figure and poor coals on demur¬
rage is being sacrificed. Prices up to Thursday
nominally were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
lJ4inch lump . $3.05@3.15 $1.15@1.25
Eastern Kentucky coal is still moving at quite a
spread of prices. There has been a little increase
in business within the last week, but it will take
quite an improvement to absorb all the offerings
which are constantly available to this territory.
In the meantime it is the part of wisdom to keep
unsold coal out of this market. Prices up to
Thursday were :
F. p. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $8.15@3.65 $1.25@1.75
Egg . 3.00@3.15 1.10@1.25
It is unofficially intimated that Franklin county
lirices on lump, egg and No. 1 nut will advance
ten cents a ton on August 1, the new circular be¬
ing .$1.60. It is understood that some of the
major producers are going to put out circulars to
this effect in the next few days. The distinct
understanding will be, however, that these prices
will a'pply only on shipments for the first half of
.August, as a new circular may be issued the latter
part of the month. Prices from that field have
been under a steady pressure for the last week
or ten days from powerful buyers who are trying
to beat down the new circular prices. The effort
to break the lump prices has been without success,
as has also been the effort to get some of the
operators to guarantee a maximum price on
business for the remainder of the coal year.
Screenings have been a trifle easier, being quoted
at the mines at about seventy-five cents a ton.
Some few sales may have been made a nickel less.
Prices up to Thursday were :
F. 0. B.
F. O. B.
Franklin County —
Chicago.
Mines.
Lump .
$1.50
Egg .
1.50
No. 1 nut .
1.50
No. 2 nut .
2.40
1.35
Mine run .
2.15
1.10
2-inch screenings ....
1.80
.75
Williamson county operators are contemplating
the possibility of advancing their price to $1.60
on the 1st of August. Some of them have al¬
ready decided to do so, first, because the demand
now is a little heavier and seems to warrant an¬
other increase, but partly because the higher price
is the customary circular at this season of the
year. In the last week the operators have been
getting a fair run of business at the new cir¬
cular price of $1.50 for the major domestic sizes
and $1.40 for No. 2 washed, while screenings
have been sold around seventy to seventy-five
cents a ton with some sales among the whole¬
salers at perhaps a less figure. Prices up to
Thursday were :
F. O. B. F. O. B.
Williamson County —
Chicago.
Mines.
Lump .
. $2.55
$1.50
Egg .
. 2.55
1.50
No. 1 washed .
. 2.55
1.50
No. 2 washed .
. 2.45
1.40
The market on Saline county coal has not
changed to any extent within the last week.
Screenings have eased off a trifle owing to an
improvement in the demand for domestic coal and
perhaps seventy-five cents a ton is about the top
figure. Prices up to Thursday were :
F. O. B.
F. O. B.
Saline County —
Chicago.
Mines.
Lump .
$1.50
Mine run .
. 2.15
1.10
Screenings .
. 1.80
.75
154-inch lump .
. 2.30
1.25
In Springfield coal screenings have been de¬
cidedly easier, due to the increased production of
lump coal. This is the time of year when the fine
coal market runs off, but it is noted that the re¬
cession has not been quite so sharp this year as in
other years, which is an encouraging feature.
The demand for domestic coal has shown a per¬
ceptible improvement in the last few days. Prices
up to Thursday were :
F. O. B. F. O. B.
Spring6eld — Chicago. Mines.
Lump . $2.32 $1.50
Egg . 2.32 1.50
Nut . 2.17 1.35
Mine run . 1.87 1.05
Screenings . 1.47 .65
The Clinton county situation has not changed
much within the last week. The demand for both
domestic and steam coals being moderate and
prices being fairly steady as follows :
F. 0. B.
F. O. B.
Clinton —
Chicago.
Mines.
Domestic lump .
. $2.27
$1.59
Egg .
. 2.07
1.30
Nut .
1.30
Mine run .
. 1.87
1.10
Screenings .
. 1.47
.70
Knox county coal has lieen fairly steady but
not extraordinarily strong for the last week at the
old prices. The market up to Thursday was :
Knox County —
Lump .
Egg .
Mine run .
Screenings .
F. 0. B.
F. O. B.
Chicago.
Mines.
$2.37
$1.50
2.37
1.50
1.87
1.05
1.47
.62
The coke market is quotably unchanged. The
domestic sizes are still selling ten to fifteen cents
a ton off circular, while business in eastern fur¬
nace coke is fair at unchanged prices. The mar¬
ket up to Thursday was :
F. O. B.
Coke — Chicago.
Connellsville . ^^'15
By-product, foundry . 4.85@5.10
By-product, egg and stove . L65
Gas house . 3.75@4.90
No. 4]
THE BLACK DIAMOND
75
Pittsburgh Trade.
Gains in Lake and Export Shipments and
in Coke Are Offset by
Local Lull.
Office of The Black Diamond,
1.503 Oliver Building,
Pittsburgh, Pa., July 21.
‘‘.An underlying feeling of confidence,” “a
splendid optimism” — “a firm confidence in the fu¬
ture” — and kindred expressions on the part of
coal producers and sellers, may all be very sooth¬
ing and encouraging to the sick trade, but what
will help the patient more, would be some actual
business in the market, and some old-fashioned
‘‘six days shalt thou labor” and dig coal orders
at the mine, instead of two days this week, and
possibly three next” — we can’t tell — it depends on
orders” — would be much more satisfactory to all
concerned.
The steel mill trade seems to be very satisfac¬
tory, and the coke trade has materially braced up,
but as long as such plants as the Westinghouse
interests and others are devoting their time and
machinery to the manufacture of shells and other
munitions of war, instead of air brakes, there is
and will continue to be an unhealthy condition
of business, that the most “splendid optimism”
will not remedy. If the shoemaker has the trade,
he can “stick to his last,” but when he has none,
he has got to get out and do something else, and
that is about the situation, the steel mills are
‘''doing something else,” but the coal operator can’t
dig shells, rifles or bayonets out of his mine.
There has been no change the past week from
the stagnant condition that has maintained for
some time, the only events that disturbed the
calm of the coal trade being the sale of the
Pittsburgh-Buffalo Company properties, and the
Meadow-Lands Coal Company passing into the
hands of a receiver, as noted below.
The properties of the Pittsburgh-Buffalo Com¬
pany were sold at a public sale Thursday, July
15, to the Union Trust Company for $1,500,000,
the only bid offered for the holdings of the com¬
pany. The sale was subject to the lien of the
first mortgage made in 1909 to secure a bond
issue of $2,500,000, of which bonds of the par
value of $1,769,000 were issued and upon which
there has been no interest paid since August 2,
1912. The sale represents an outlay of nearly
$3,500,000.
The properties were first offered separately, but
there were no bids, after which they were offered
as an entirety. Attorney James H. Beal, after
the sale opened, made the bid of $1,500,000 as the
representative of the Union Trust Company.
There being no other bidders his bid was accepted.
The Union Trust Company holds the first mort¬
gage on the property.
.A.ttorney C. G. Mcllvain, representing creditors,
insisted that the master postpone the sale, due to
insufficiency of the bid, as these properties have
been appraised by Messrs. Keefer and Henderson
of Pittsburgh, for the court at $6,368,522.15 if
operated on a screen coal basis. They were also
appraised by Dr. I. C. White, State Geologist of
West Virginia, at more than $10,000,000, and
by W. H. Coverdale, consulting engineer of New
York, at more than $11,000,000, their names hav¬
ing been suggested by banking interests.
The appraisals made by Messrs. Coverdale and
White were confirmed by the late John W.
Boileau, a recognized high authority on local
property values, and also sustained by appraise¬
ment of adjoining properties made by Edward V.
d’Invilliers of Philadelphia, and by Julian Ken¬
nedy and Rufus Crawford, both of Pittsburgh.
James S. Boggs was appointed temporary re¬
ceiver for the Meadow-lands Coal Company last
week, after a bill in equity was filed in Common
Pleas court by the Harris Pump and Supply Com¬
pany against the coal company, asking that a re¬
ceiver be named. The plaintiffs presented a claim
of $1,152.58 against the coal company, which they
say, the latter company has been unable to meet.
The statement says that the company’s report of
July 1 showed liabilities of $725,560.25, with assets
consisting of coal lands and equipment. The de¬
fendant company, in its answer, stated that it can
realize a sufficient amount to liquidate outstanding
obligations if given time to realize upon its assets.
The answer further says that the recent busi¬
ness depression made it impossible to operate
mines to capacity, and thus the income of the
company w^s cut down.
A round among the leading operators develops
nothing new, domestic buying very light, and
little or nothing doing in the lake trade. Any
talk of business stems to be along the line of
anticipated export trade, and this it is suggested
will have a tendency to better domestic prices.
A Canadian inquiry of a week ago for quota¬
tions on a large amount of slack, was withdrawn
by wire a couple of days since, and in another in¬
stance, hold back orders for two weeks on a
regular contract would lead to the conclusion that
northwest prospects were not improving, but hope
survives, notwithstanding, and some intimate that
a coal boom is near — following the expansion in
the steel and coke trades — coal being the first to
feel a depression, and the last to recover from
one.
The coke situation is better all around. Fur¬
nace maintains advances made a week ago, and
some inquiry is being met on a sliding scale based
on pig iron prices, which today would mean $1.85.
Foundry shows decided improvement, with a firm¬
ness that is encouraging. The Jamison Coal &
Coke Company report that they have with¬
drawn from the coke market, their present output
being satisfactorily disposed of for the time being.
Pittsburgh Personals.
John M. Jamison, president of the Jamison
Coal & Coke Company, with offices in the Oliver
building, Pittsburgh, landed at Bordeaux, France,
on the 19th, and was expected to meet represen¬
tatives of the French government in Paris today.
The French, Italian, English and other European
governments are in the market for Pennsylvania
coal and coke. It was upon invitation of the
French government that Senator Jamison went
to Europe. It is thought that he will close con¬
tracts for the sale of millions of tons of coal. If
they secure these contracts the Jamison plants in
western Pennsylvania and West Virginia will run
to their capacity.
Birmingham Trade.
Birmingham, Ala., July 22. — (Special Corre¬
spondence.) — Since most of the large contracts
for steam coal have been renewed, the market
has dropped back to a state of extreme dullness.
Some coal is being barged down Warrior river
by Pratt people, but as yet the business has not
developed to any large extent. New orders for
steam are lacking and outlook for new business
is not very flattering. Domestic coal trade is
very nearly at a standstill and the trade is only
desultory. Blacksmith coal still holds to a fair
trade. As to coking coal, it is hardly any question
hut that the demand will assume a better tone and
a larger output be had very soon. It is reason¬
ably certain that at least five furnaces will need
supply of coal before many more weeks as assur¬
ance has been given by officials that such will be
the case in the early part of August. This alone
is about the only real tangible prospect for the
bettering of coal mining operations.
Walter Moore and associates who purchased
the Empire Coal & Coke Company, are making
preparations to get business by the way of War¬
rior river ; some extensive work is being planned
and work has already begun. This company owns
large holdings of land on Frisco railroad and
with improvements now being put into execution
will give the company outlet to the gulf for the
well-known Black Creek coal, which is used as a
domestic coal of high grade qualities and pos¬
sesses sufficient needs for a fine bunker coal.
Actual test has proven its worth in this respect.
The following are prices quoted but varied
some :
F. O. B. F. O. B.
Bibb County Domestic Coal — Mine Birmingham
Cahaba fancy lump . $2.35 $2.65
Cahaba No. 2 . 2.10 2.40
Jefferson County —
Pratt fancy steam lump . 1.70 2.10
(Furnished by T. (7. I.)
Pratt mine run . 90@1.15 Frt. rate 30c
Jefferson seam, steam coal . 1.15@1.25 Frt. rate 30c
Black creek steam . 1.25@1.55
Walker County —
Horse Creek steam mine run . 90@1.10 Frt. rate 40c
Carbon Hill lump domestic . 1.60@2.00
Most all coals based on this classification.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
Louisville Market.
Louisville, Ky., July 22. — (Special Corrspoud-
encc.) — July is nearing an end, but the long
hoped-for appearance of demand for domestic
coal has yet manifested itself to only a slight
degree. It seems that the farmers are too
busy, and the city people are too poor to lay
in coal, and that coal has been set down to the
bottom of the program this summer, to be
taken up at the last possible minute. Mean¬
while, the struggle for existence among pro¬
ducers, shippers and retailers still continues
without special change, every body recording
a phenomenal light volume of sales and in¬
creasing risk and difficulty in regard to
credits.
Notwithstanding the disappointment of
their hopes for a substantial advance in the
market price of domestic sizes by this time,
producers are for the most part declining to
quote coal, except at fair schedule prices, for
delivery during the fall months, preferring to
hold a considerable portion of their tonnage
free. They feel certain that the greatly cur¬
tailed buying of coal during the spring and
summer is bound to result in an active market
and possibly car shortage for at least several
months in the fall, and are therefore taking
on little or no future business.
Prices on block coal at present range all the
way from .$1.25 on certain of the block coals
produced in the new mining fields, up to .$1.90
per ton on high-grade Jellico coals, and a
normal August demand from the country trade
would rapidly take up the surplus block pro¬
duction which is now demoralizing the market
and restore conditions as to the domestic
trade to a normal basis.
The market for steam coal at the present
time is not altogether discouraging. At least,
screenings are not a great drug on the market,
and neither from the eastern nor western
field are nut and slack contracts being over¬
produced. Run of mines coal and the coarser
sizes, however, are hard to move, and either
spot or contract business for these grades is
eagerly snapped up.
Nut and slack of the best grade is bringing
from 50c to 60c f. o. b. mines, while second-
grade screenings are worth from 25c to 40c
f. o. b. mines. With any material increase in
the movement of domestic sizes, however, it
will be a problem to dispose of the increased
output of fine coal.
Omaha Trade.
Omaha, Neb., July 22. — (Spectal Correspond¬
ence.) — General conditions have not been overly
favorable to the coal business, continued rains and
more or less hail making the harvest of the wheat
crop uncertain.
The ground is so soft in a good share of the
wheat fields that it makes it almost impossible
to get in with machinery, resulting in considerable
wheat being stacked for future threshing. A good
many of the local coal dealers are holding off buy¬
ing on account of these uncertain conditions, and
unless there is a decided change the buying will be
from hand to mouth. Very little anthracite coal
has been shipped owing to the inability in hauling
the coal account of bad roads. The market on
practically all grades of soft and hard coal is
more or less weak.
The following prices prevailing:
Southern Kansas — -
Nut .
Slack .
Franklin County —
Lump .
Egg .
Nut .
Williamson County —
Mines.
Omaha.
$3.20
2.70
$3.75@3.90
3.75@3.90
3.75@3.90
3.65@3.75
3.6503.75
Egg .
Rock Springs —
Lump .
5.85
Nut .
5.35
Arkansas Anthracite —
Lump .
6.51
Broken sizes .
. 3.65
6.40
Omaha Local News.
A meeting is being arranged between the local
jobbers and freight claim agents of various lines
to be held in Omaha for the purpose of bringing
about closer relations and better understanding
between the shippers and the railroad claim de¬
partments ; the principle grievance being the ar¬
bitrary stand taken by some of the railroads re¬
lative to the proper allowance in case of transfer
of shipments en route.
In electing A. L. Havens of the Havens Coal
Company, Omaha, as president of the Northwest¬
ern Retail Coal Dealers’ .Association, we believe
that they have picked out the right man. Mr.
Havens has been identified with the coal business
a good many years and has always been active in
any movement for the betterment of general con¬
ditions. Mr. Havens has been especially identi¬
fied with various movements to bring about closer
relations between tlie railroads and shippers of
coal. His many friends, therefore, feel that if
the coming year is not one of the biggest in his¬
tory in the association, it will be through no lack
of effort on the part of their worthy president.
76
THE BLACK DIAMOND
[July 24
Cincinnati Trade.
Operators Are Encouraged by Better
Prices on Splint and by Orders
for Smokeless.
Cincinnati, Ohio, July 22. — (Special Corre¬
spondence.) — This week finds the market still
in an uncertaia state but with a little life
shown here and there in the signing up of
contracts, a slight advance in some grades of
splint coal and better demand for some of the
products of the territory. As far as the smoke¬
less products are concerned the market is just
the same with no activity even in the Poca¬
hontas market which is the best known and
most widely advertised. The New River pro¬
ducts were slightly embarrassed early in the
week by a sudden access of egg coal into the
market but one or two of the leading pro¬
ducers gladly captured the welcome “spot”
offerings at schedule price and this aided them
to better delivery of egg and helped the
market. There was therefore during the rest
of the week, no trouble with egg, although
jobbers tried to “bear” the market when they
discovered that there had been some spot egg
loose.
One of the reasons that smokeless pro¬
ducts are firm in this territory is because the
operators are wisely refraining from crowding
any into the market here which is quiet, with
demand dormant generally, for the time being.
On the other hand they are crowding their
product into the tide water market where
there is room for it, and more and are keep¬
ing up their movement fairly to the usual
volume. This relieves the territory and in¬
cidentally saves the situation to some extent
with the splint brethren. A pertinent sug¬
gestion of the condition of the market in the
interior is found in orders sent to one or two
of the local offices of large producing com¬
panies to notify patrons that on and after
July 25 the August schedule will prevail. This
has had a tendency to rouse the dormant
market and at the close of the week the orders
and contracts are fairly active.
The Kanawha market has not yet aroused itself
although there are evidences that the Rip Van
Winkle nap it has had is approaching its
close for there is a rumbling in the ovens and
furnaces about the country which if kept up a
few weeks longer will stir the splint market
to activity or many prominent operators and
financiers of this city are badly fooled, and
are bad prophets. One operator speaking for
a prominent field of splint territory, said this
week that splint mining is already coming
along fairly well with spot prices just a little
below contract prices but nearer to them than
has been true for some months and that he
would prophesy that the spot prices will
catch up with the contract prices by the mid¬
dle of August, and will pass them by the first
of September. If that should prove to be true
get ready to hear some splint “Hallelujas”
from this direction about September 1. This
will be the first time this condition has ob¬
tained in a full year. In general it may be said
of the present that while prices are not much
better, buying is better because of a desire to
get in on the July prices.
Some spot prices reported this week show a
little better. One company reports Thacker
run of mine at 85 to 90 cents spot; 1^ inch
lump, $1.10; 3-inch lump, $1.25; and these
prices generally are 10 to 15 cents above C.
& O. prices. This is but a hint of prices all
along the line, all quiet but few operators
reporting improvement, some enthusiastic
souls reporting a few more contracts or a
few more sales of cars. But all are looking for
a cataclysm of orders before many weeks and
are trembling to think what will happen. La¬
bor will be scarce for Italian miners by scores
and hundreds are leaving the mines and going
back to Sunny Italy to fight for their flag.
As an instance; at the beginning of this week
100 started for New York to embark; three
days before that 50 went and a few days ear¬
lier 75 started out for home. Probably seventy-
five per cent of all these were miners and the
rest railroad workers.
Cars are begining to be “shy.” Some of the
mines say that there is a timidity on the part
of railroad managements just now as to stat¬
ing just when they can deliver empties, where¬
as just a few days ago one could name the
date and frequently forgot the number wanted
and shoved about twice as many as ordered
onto the siding. They seemed then to have
a fair idea of the size of the yards and their
capacity for empty cars, which they now
suddenly seem to have lost. The market is a
waiting one but not so much so as formerly.
Cincinnati News Notes
W. R. Johnson, of Smithers, W. Va., pres¬
ident of the W. R. Johnson Coal Company, of
that city, was in Cincinnati the early part of
the week calling on dealers.
L. N. Buford, president and Hugh Buford,
secretary and treasurer of the Ashless Coal
Corporation, Lothair, Ky., were visitors in
Cincinnati early this week.
Thomas N. Mordue, Chicago representa¬
tive of the Castner, Curran & Bullitt Co., was
a visitor to the officers of the company in this
city this week.
G. H. Caperton, president of the New River
Coal Company, passed through Cincinnati
Saturday on his way home to Charleston, W.
Va., from Chicago, where he had been on a
business mission for several days.
Enoch Carver, of Charleston, W. Va.,
father of W. W. Carver, and a former well-
known coal man of this city, visited his son,
who is resident manager of Percy Heilner &
Sons in Cincinnati, over this week.
The present rise in the Ohio River has given
the Pittsburgh and Kanawha River people
a chance to float down still more coal and
they have embraced the opportunity and, for
the Pennsylvania mines at least, it is likely to
be the last chance for the season, until the fall
rains set in. This week the Campbell’s Creek
Coal Company has filled its elevators and the
Pittsburgh operators have sent down heavy
tows to the cities and towns below Cincin¬
nati on the Ohio and Mississippi.
It is understood that the J. T. Hatfield
Company, which lost the Convoy in the recent
tornado, which visited Cincinnati, has decided
not to try to raise the vessel. It has been dis¬
covered that it has been broken in two and
otherwise damaged until it is useless to try to
salvage it. The government will likely remove
it as an obstruction to navigation and the in¬
surance companies will be asked to pay the
insurance. Captain Harry Menke, of Pitts¬
burgh, is in the city this week watching for
the river to go down so the Queen City Coal
Company can place divers at work under his
direction to raise the towboat Fulton, which
went down at the same time the Convoy did,
about three hundred yards from the Convoy.
An order of the Cincinnati, New Orleans &
Texas Pacific Railway Company, and the
Louisville & Nashville Railway Company
cancelling tariff rates from West Virginia coal
fields into Central Kentucky important towns
and cities, has been suspended by the Inter¬
state Commerce Commission pending estab¬
lishment of the contentions of the Cabin Creek
Coal Company, the Clear Creek Coal Com¬
pany, and the Carbon Fuel Company, of this
city. The cancellation of the tariff was made
by the Chesapeake & Ohio Railway because
of an increase of rates by the other two roads.
The old rate was from $1.10 to $1.20 per ton
to Central Kentucky points. Of this the C.,
N. O. & T. P. Railway it was claimed made
claim to 60 to 70 cents for hauling and deliv¬
ering to the other roads even if the distance
was but five or six miles and in some cases it
was not over seven miles, it was said. By
reason of this the other roads had to add 10
cents to their own charges which the coal
companies claimed in many cases swallowed
up the entire profit. Manager W. J. Magee
of the Carbon Fuel Company, C. R. Moriarity
manager of the Cabin Creek Consolidated
Coal Company and R. A. Dickson appearing
for the Clear Creek Coal Company, placed
their case before H. E. Kelly representing the
Interstate Commerce Commission in a hear¬
ing at Frankfort, Ky., last week. The railroads
claimed they were protecting their operators
in their rates and in their contentions. They
also averred that the rates were justified by
the physical obstacles to be overcome.
Toledo Market.
Toledo, Ohio, July 22. — (Special Correspond¬
ence.) — Practically everybody in the trade here
agrees that there is a slight general improvement
noticeable in the market conditions. Demand is
still slow but there is a stiffening up of prices that
is encouraging. Lake movement has been slow
throughout the season as compared with other
years and there will, of course, be some slowing
down after the first of next month, owing to the
price increase which it is announced will be en¬
forced as usual after the first of August. The
new coke ovens to be put in here will add some¬
thing to the amount of coal shipped in. Railroads
have not yet begun to buy and coal men gen¬
erally are awaiting with great anxiety the com¬
ing of a change in this connection. Domestic
trade is rather slow and, in fact, a general slow¬
ness characterizes the entire market.
Of the smokeless coals, Pocahontas No. 3 is in
strong demand at the full list price and there is
no cutting in this grade of coal. Contracts are
not being made with new concerns for delivery
until later in the season. The regular price in¬
crease will be made in August. Some of the job¬
bers are complaining of a difficulty in securing
orders for smokeless coal, but on the whole the
call for prepared sizes is stronger than the supply.
Pocahontas is at a premium.
F. O. B.
F. O. B.
Smokeless —
Toledo
Mines
Lump and egg .
$2.00
Mine run .
1.25
Hocking movement is
slow and the supply not
very heavy. Operators
are not anxious
to mine
coal to be sold for a song.
F. 0. B.
F. O. B
Hocking —
Toledo
Mines
3-inch lump .
1.50
154 -inch lump .
1.40
J4-inch lump .
1.80
Egg .
1.25
Nut .
1.15
Mine run .
1.10
Massillon movement is extremely slow and
prices not strong.
F. O. B. F. O. B.
Massillon— Toledo Mines
Lump . $3.25 $2.50
Washed nut . 3.25 2.50
Pomeroy coal is not enjoying any great activ¬
ity nor is there any change in price.
F. O. B. F. O. B.
Pomeroy — Toledo Mines
Domestic . $2.60 $1.60
Egg and nut . 2.35 1.35
Kentucky still enjoys a fairly good demand, and
prices are holding a little firmer than other domes¬
tic grades.
F. O. B. F. O. B.
Kentucky — Toledo Mines
4-inch lump . $2.90 $1.65
Egg . 2.50 1.26
Nut, pea and slack . open open
West Virginia coal is enjoying some activity,
the low prices prevailing on this coal keeping up
a movement as long as there is any life at all in
the coal situation, but there is nothing like the
trade there should be.
Kanawha Gas —
W-inch lump . 2.30
Mine run . 2.20
Fairmont —
Ika/inch lump . 2.30
li-inch lump . 2.20
Mine run . 2.10
F. O. B.
Kanawha Splint — Toledo
4-inch lump . $2.75
2-inch lump . 2.65
l4-inch lump . 2.40
Mine run . 2.25
1.05
.95
1.05
.95
.85
F. O. B.
Mines
$1.50
1.40
1.15
1.00
The Pittsburgh No. 8 is very slow in demand
here and can be bought for practically the buyer’s
own price. This condition is likely to continue as
long as the railroads hold off in buying, as they
have been the strong patrons of Pittsburgh No. 8
coal.
Pittsburgh No. 8 —
154 -inch lump . 2.40 1.40
i4-inch lump . 2.20 1.20
Mine rue . 2.10 1.10
Very little Youghiogheny coal is sold on the
local market and prices are considerably off the
list.
Y oughiogheny —
Mine run . 2.45 1.20
l^i-inch steam lump . 2.55 1.30
Blossburg Smithing —
Prepared size . 3.20 1.75
Lilly smithing, prepared size . 3.20 1.75
Cambridge is selling about as it has been for
several months past. Prices are low.
F. O. B.
Cambridge — Toledo
Mine run . $2.10
}4-inch lump . 2.20
154-inch lump . 2.40
F. O. B.
Mines
$1.10
1.20
1.40
Cannel is holding up well as to price, but the
demand is somewhat spotted, coming in fits and
jerks.
Kentucky Cannel lump . $4.60 $2.75
Pennsylvania Cannel, egg . 8.60 2.15
Pennsylvania Cannel, lump . 4.20 2.75
Ohio Cannel . 3-^5 3.00
C. M. Anderson of the Elk River Coal & Lum¬
ber Company of Columbus, visited local coal of¬
fices this week.
No. 4]
THE BLACK DIAMOND
St. Louis Trade.
St. Louis, Mo., July 22— (Special Correspond¬
ence.) — A general improvement in demand for
all domestic coals is noticeable all down the line.
The country demand is much stronger. Oper¬
ators in all districts seem to be working closer
together than in former years and as a conse¬
quence prices are being better maintained.
In sympathy with the high grade coals. Stand¬
ard coal is a little stronger on doinestic sizes.
Screenings are weaker. Current prices are as
follows :
Mine St. Louis
6-inch lump . $1.00 $1.5754
3x6 egg . I’OO
2-inch lump . 85 1.4254
No 2®^n;r.:; . 80 1.3754
lJ/2-inch screenings . 70 1.27J4
Dealers are taking an increased tonnage of
Staunton and Mt. Olive coals. Most of it is still
going on contracts.
6-inch lump . $1.25
2-inch lump . 1-20
2-inch screenings
1.8254
1.7754
1.2754
Carterville operators report business much im¬
proved and by the first of August the district, as
a whole, will be running pretty well on full time.
Domestic business from both south and north is
coming in freely as is also considerable steam
business from the south.
6-inch lump .
6x3 egg .
3x2 nut . . . . .
154-inch screenings
$1.35
1.35
1.20
.70
$2.0754
2.0754
1.9254
1.4254
Franklin county, as a whole, seems to have
about all the domestic business it can comfort¬
ably handle without being behind with orders.
Production is almost full and domestic orders
are just keeping abreast of it; an almost ideal
condition. Steam sizes are lagging a little. Prices
are being rigidly maintained.
6-inch lump .
. $1.50
. 1.50
. 1.50
. 1.35
1)4 -inch screenings .
$2.2254
2.2254
2.2254
2.0754
1.5254
Anthracite has been very sluggish, but is be¬
ginning to pick up considerably and will prob¬
ably be quite active for the balance of the month.
House holders do not seem to take the usual in¬
terest in stocking up early.
Chestnut . $7.35
Stove or egg . 7.10
Grate . 6.85
Smokeless and coke are both moving very well
for this season of the year.
Gas house coke, all sizes . $4.00
By-product coke, all sizes . 4.25
Smokeless lump or egg . 4.50
Smithing . ^-25
Note. — Prices on Illinois soft coal, f. o. b.. East
St. Louis, Madison or Granite City, Ills., are 25^4
cents cheaper than the above named rates to St.
Louis, Mo.
Indianapolis Trade.
Indianapolis, Ind., July 22. — (Special Corre¬
spondence.) — Market conditions on steam and
domestic coal continue in Indiana about the same
as they have been for the last month. About the
only satisfactory feature of the situation is that
prices are steady even if they are low. Operators
and dealers seem to have come to the realiza¬
tion of the folly of cutting prices in order to get
business. There is practically no free coal on
the market, nearly all of the producers being con¬
tent to get out just what the contract consumers
demand. The movement of coal from the mines
continues below normal for July. The tonnage
for the month is at least a fourth less than it was
in July, 1914, which was not a good month. The
demand for domestic coal is about the same as
usual for July. Probably the total consumption
of domestic will be less this July than last. The
threshers cause a slight bulge in the production
of domestic, but this year the floods have de¬
stroyed hundreds of acres of wheat so that the
threshing season will be cut somewhat shorter
than it generally is. There have been few lucky
breaks in favor of the operators and dealers. The
sale of anthracite is below normal in Indianapolis
and other cities. The demand for smokeless coal
has fallen off, but better business is anticipated
for August and September.
The following prices are being quoted by the
Indiana wholesalers :
F. O. B. F. O. B.
Indiana — Mines. Indianapolis.
No. 4 mine run . $1.10@1.20 $1.60@1.80
Nos. 5 and 6 mine run . 1.00@1.10 1.50@1.6O
No. 1^-inch steam lump . 1.30@1.40 1.80@1.90’
Nos. 5 and 6 steam lump.... 1.20@1.30 1.70@1.8O
No. 4 egg . 1.40@1.50 1.90@2.0a
No. 4 nut . 1.30@1.40 1.80@1.9()
No. 5 egg . 1.25@1.35 1.75@1.85
No. 4 screenings . 80@ .90 1.30@1.40
Nos. 5 and 6 screenings . 76@ .80 1.26@1.30
Domestic lump . 1.40@1.50 1.90@2.00
No. 1 washed coal . 1.75 2.25
No. 2 washed coal . 1.65 2.15
Brazil block domestic . 2.00@2.10 2.60@2.G0
Southern Indiana Field —
No. 5 mine run . 1.00@1.05
Domestic . 1.40@1.50
The following prices are being quoted by the
Indianapolis retailers, per ton ; Linton No. 4
forked, $3.00 ; Indiana lump, forked, $2.75 ; Indi¬
ana lump and egg, screened, $2.50 ; Kanawha
lump, forked, $4.25 ; Ohio Hocking lump, forked,
$4.25 ; Ohio Hocking, washed egg, $4.50 ; Kentucky
lump, $4.50; Ohio Jackson lump, forked, $5.00;
Blossburg smithing, $5.50 ; Cannel lump, $6.00 ;
Pocahontas forked lump, $5.50; Pocahontas shov¬
eled lump, $5.00 ; Pocahontas mine run, $4.00 ;
Pocahontas, nut and slack, $3.50 ; Anthracite
chestnut, $7.75 ; Anthracite stove and egg, $7.50 ;
Anthracite grate, $7.25 ; Connellsville coke, $6.00 ;
Indianapolis by-product coke (all sizes), $5.50.
EXTRA DELIVERY CHARGE.
Bags, 50c a ton extra ground floor or dumped
in cellar.
Bags, 75c a ton extra, carried into cellar.
Charge for chute or wheelbarrow, 25c a ton.
Coke, bags, 60c; bags in cellar, 80c.
Detroit Trade.
Detroit, Mich., July 22. — (Special Correspond¬
ence.)— FracticaWy featureless, except for its in¬
activity, the local coal market continues the drift¬
ing, which has marked its course for two months
past, and which appears to have brought it no
nearer to the stronger activity, which shippers
have been looking forward to with hope.
Despite the persistency of discouraging condi¬
tions, shippers generally retain their optimism and
hold to the belief that the long expected improve¬
ment cannot now be much further in the future.
The fact that a better balance appears to exist
between the volume of sales and the quantity of
consignment coal brought into the city is one of
the small changes in the situation, which tends
to inspire a more cheerful sentiment.
The consignment coal remains, however, as a
troublesome factor in the market and while, at
present, greater steadiness in prices, seems to
prevail, there remains considerable coal which
goes on sale at prices under schedule to assure
its removal from tracks before demurrage ap¬
plies. This stock includes almost all sizes and
varieties of coal, though the larger sizes of smoke¬
less are not plentiful. The supply of small coal
of that type, however, is rather in excess of im¬
mediate requirements.
Almost no variation in prices has developed
during the week. Fine coal on forced sale is still
obtainable at from 45 cents upward and there is a
good quality of lump selling around $1.00 and
occasionally a trifle lower.
Orders for anthracite are still coming in very
slowly, despite the efforts of shippers to stimulate
interest by pointing out the possibility of less
prompt delivery a few weeks later in the season.
In the rail-lake trade the situation, instead of
improving appears to have become less satisfactory
than it was during the earlier months of the navi¬
gation season. Shipments from practically all
loading docks on Lake Erie are lighter than for
several years. Vessels operated by shippers, which
have been able to obtain coal, are many of them
being returned up the lakes without cargo, be¬
cause of the slow movement of coal from the
mines, while wild carriers having no ore con¬
tracts to fill, are obliged to wait several days for
an upbound cargo.
^ One large shipper in Cleveland received orders
a few days ago to send no more coal to Lake
Superior for about three weeks, owing to the lack
of storage space on docks at the American head
of the lakes. The delay in distributing the coal
delivered there has resulted in crowding most of
the unloading docks.
Prices in the local
market on mine
shipment
orders are as follows
F. 0. B.
F. 0. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
$2.36@2.40
Mine run .
2.16@2.20
Slack .
1.80@1.90
West Virginia —
Four-inch lump .
. 1.35@1.60
2.76@3.00
Two-inch lump .
2.60@2.65
Three-quarter .
. 1.00(V/W.10
2.40(212.50
Mine run .
2.30@2.40
Nut, pea and slack .
1.90(®2.16
Smokeless —
Lump and egg .
3.60
Nut .
S.IO
Slack .
Open
Mine run .
Open
Kentucky Splint —
Lump .
2.60@2.65
Egg .
2.40@2.60
Nut, pea and slack .
Fairmount —
Three.quarter steam lump
Mine run .
Slack .
Hocking Valley —
Shaker three-inch lump. .
Shaker egg and nut .
Domestic lump .
Three-quarter lump .
Mine run .
Nut, pea and slack .
77
Open
Open
. .86® .95
2.25®2.85
. .70® .80
2.10®2.20
Open
Open
1.60
2.65
1.15
2.30
1.35
2.60
. 1.25®1.30
2.40®2.45
. 1.00®1.10
2.15@2.26
Open
Open
Twin Cities Trade.
Minneapolis and St. Paul, July 22. — (Special
Correspondence.) — Northwestern coal orders are
being held back by the wet weather. Small grain
in this territory seems to be in good shape for a
large crop, but with rains almost every day, the
growth of $traw is very heavy and the grain in
much of the territory has not yet begun to fill out.
As a consequence threshing will be very much
delayed.
These conditions are all having their influence
on the coal business. Dealers do not want to
take in threshing coal until they are sure what
the crop is going to be, and as yet, many things
can happen to prevent a large yield of grain. On
the other hand the prospects are favorable for a
good crop. If there is no rust and grain (on
account of the heavy straw) does not lodge, pros¬
pects indicate one of the heaviest crops on record.
Corn is not doing so well, but pasturage is heavy
and stock is flourishing.
Notwithstanding the fact that all the prospects
are favorable, well-posted coal men do not be¬
lieve the trade will anticipate its requirements to
any extent. One reason for this is found in the
prospective prosperity. On account of the heavy
grain yield it is expected that more money will be
required this season to move the crop. This may
result in higher interest rates than usual. Some
dealers who made loans last year for the pur¬
pose of carrying heavy stocks of fuel in anticipa¬
tion of their requirements were badly pinched,
on account of the advance in the interest rates,
due to the European war. This year, therefore,
they are not inclined to place themselves in a
position where they will be at the mercy of the
banks, and this is likely to have a tendency to
crowd all the business into the winter months.
If an abnormally cold winter follows, coal may
command a premium, but this is anticipating what
may happen three or four months hence, and,
therefore, any conclusions are largely speculative.
Prices on all grades of bituminous coal range
steady at circular quotations or very close thereto.
While all factors in the trade are eager to secure
all business possible, and are exerting themselves
to the limit, the lesson of a year ago is still fresh
in the memory of sales agents and there is no
price-cutting of consequence. Under existing cir¬
cumstances this policy is the only successful one.
Not one car additional of coal would be sold if
prices were ragged and demoralized. Buyers are
not withholding orders on account of the market,
but for the reasons already stated.
Current quotations on all grades of coal sold
in this territory are as follows :
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.86 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 6.60 6.70
Buckwheat . 4.00 6.20
During July a discount of twenty cents per ton is
allowed on all anthracite except pea and buckwheat.
which prices are net.
BITUMINOUS.
Splint, screened lump and stove.... $3.40 $4.36
Splint, dock run . 3.10 4.06
Hocking, screened lump and stove... 3.40 4.36
Hocking, dock run . 3.00 3.96
Youghiogheny, gas, lump and stove. . 3.40 4.36
Youghiogheny, gas, dock run . 3.10 4.06
Pittsburgh vein, lump . 3.40 4.36
Pittsburgh vein, dock run . 3.00 3.96
Pocahontas, screened lump or egg.... 4.75 5.71
Pocahontas screened lump and egg
mixed . 4.60 6.46
Pocahontas, mine-run . 8.26 4.21
Cannel, lump . 6.25 6.21
Smithing, bulk . 4.25 5.21
Smithing, in lOO-lb. sacks . 6.00 6.96
Briquets, anthracite . 5.00 5.96
Briquets, smokeless . 6.00 6.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows:
Southern Illinois chunks . $1.40@1.50 $3.55@3.70
Southern Illinois egg . 1.35@1.50 3.66@3.70
Southern Illinois No. 1 nut . 1.35@1.50 3.55@3.70
Southern Illinois No. 2 nut . 1.25@1.35 3.45@3.55
Southern Illinois No. 3 nut . 1.20@1.25 3.40@3.45
Southern Illinois run-of-mine. . . . l.I5@1.25 3.36@3.4a
Southern Illinois 2 in. screenings. .75@ .80 2.95(®3.00
Southern Illinois coal includes Franklin county,
Harrisburg and Williamson county.
78
[July 24
New York Trade.
Anthracite Market Drags With No Snap
Visible — Bituminous Spot Demand
Weak.
Ofifice of The Black Diamond,
New York, July 31.
During this the dullest period of the sum¬
mer, there is scarcely a ripple to be noticed
in the anthracite trade from week to week.
This situation made lie summed up as being
one dull week after another, and very little
improvement is looked for before the middle
of August.
About the hardest thing that the operators
are finding to do at the moment is to keep*
production restricted in line with the very
limited demand that is being felt for domestic
coal. This does not mean that trade is ab¬
solutely dead, for a good volume of coal is
moving all the time, the Lake trade calling
for regular shipments during the summer,
while the all-rail eastern coal trade keeps
calling for shipments, although in greatly re¬
duced volume to what obtained during the
earlier months of the present coal year.
At tidewater, one finds more dullness per¬
haps than at any other centers where anthra¬
cite enters largely into general consumption.
This can be attributed to the fact that most
of the independent operators take chances in
shipping surplus coal to New York and other
tidewater ports, anticipating that because of
the very heavy demand for coal at these points,
they will stand a chance of securing buyers
upon favorable terms. At the moment, New
York harbor is plentifully supplied with all
of the domestic and steam sizes of coal, a
great many loaded boats of the latter sizes
lieing practically up the demurrage stage with
sellers facing serious losses unless they sell
promptly at fair prices. Concessions are still
Ijeing made on some of the slow domestic
sizes, chestnut coal at the moment being about
the most stagnant. The demand for stove,
which is the most favored size, is not too good
even for a dull month, and certain shippers
of this size where they have an accumulation,
are very willin.g to make concessions before
facing demurrage charges.
In the steam size situation, the tidewater
markets are over supplied, and consequently
a great deal of buckwheat coal, principally of
the inferior and medium grades, are loaded in
boats awaiting buyers. Rice and barley are
not as long as No. 1 buckwheat, but these
sizes are very plentiful and prices low if the
buyer is not so very strict about quality.
Choice grades of rice and barley are prac¬
tically out of the market, as these are being
taken upon contracts, and the restriction in
mining prevents producers from securing any
surplus of any amount. Pea coal is largely
going to stock piles, so light is the demand
for it.
The Bituminous Situation.
Some of the large shippers of contract coals
report a very fair movement of these coals, but
report practically no inquiry for si:)ot lots. The
spot market cannot, therefore, be auoted as
being improved. One hears very little call for
spot coals, except in exceptional cases at tide¬
water where someone has a vessel to load,
and is short a few cars, or needs an unusual
amount of bunkers so as to give a boat quick
dispatch. The two lines that are active at the
moment are the export and bunker lines, ex¬
port coal continuing to go forward in large
volume, though not quite as heavy as was
recorded during July, when for the first time
in the history of the American coal trade, sea¬
board coal exports reached the 1,000,000 ton
mark.
However, there has been a very radical in¬
crease in the demand for bunker coals, due no
doubt to the trouble in Wales, and the in¬
crease in the tonnage in bunkers together with
the shipments of exclusive cargo lots, will no
doid)t at the end of the month show up as
well as the cargo and bunker business for
June. Baltimore is exporting between 50,000
and 00,000 tons per week, while Hampton
Roads is running between 140,000 and 150,000
tons per week. Bunkers requirements are es¬
pecially heavy just now for cargo steamers,
as a great many of these are being used in
carrying war munitions to Europe, and vessel
owners are taking very large bunker tonnages
THE BLACK DIAMOND.
on this side so as to get (|uick dispatch when
they reach their destination. Consequently
those houses engaged in the bunkering trade
are doing very well at the moment.
The New York harbor situation is very quiet,
with a great deal of unsold coal being available
l)oth at the loading piers and in boats. Good
grades of Pennsylvania steam coals can be
purchased on the basis of $1.10 to $1.15 at the
mines for prompt shipments, while at New
York harbor ports, steam coals are available
at $3.35 up. fair grades at $3.50, and choice
grades at $3.65 to $3.80.
The Vessel Situation.
The coastwise vessel situation is not mate¬
rially changed. Rates are slightly weaker for
coastwise charters, though prices have not
been changed to any extent since last quota¬
tion. Off shore rates are some easier, and
there still continues to be a good demand for
schooners for taking export coal, principally
to South American points.
We quote current rates on freight as fol¬
lows :
From Hampton Roads to Boston, seventy-
five to eighty-five cents; to the Sound, seventy
to eighty cents.
From New York rates to New Haven are
thirty cents. New London, forty cents, and
Providence and New Bedford, fifty cents; to
Boston, fifty-five to seventy cents; Portsmouth
and Portland, fifty-five to seventy cents; to
Bangor, seventy cents. Harbor rates are from
eighteen to twenty cents.
Prices on gross tons of bituminous coals are:
F. O. B. F. 0. B.
Somerset County —
Harbor.
Mines.
Best grades .
. $3.85
$1.25
Medium grades .
. 2.G0
1.10
Ordinary .
1.00
Cambria County —
Best Miller vein .
1.40
Cheaper grades .
. 2.60
1.05
Clearfield County —
Best grade .
. 3.00
1.35
Ordinary grades .
. 2.50
.95
Indiana County —
Best grade .
1,25
Medium grade .
. 2.50
.90
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
.75
Best gas, J^-'nch lump .
Best grade, run of mine .
1.10
.90
Clas slack .
.45®. 70
New York Trade Briefs.
L. S. Evans, president of the Eastern Coal
& Export Corporation of Richmond, Va., was
in town Tuesday.
J. A. Renahan, vice-president of the Smoke¬
less Fuel Company, No. 1 Broadway, was on a
southern trip this week.
Joseph Gordon, one of New York’s best
known retail coal dealers, is visiting the Pana¬
ma-Pacific Exposition at San Francisco.
W. S. Wolle, general eastern sales agent of
the Lehigh Valley Coal Sales Company, is
spending his vacation in the Adirondack moun¬
tains.
W. A. Marshall of W. A. Marshall & Co.,
No. 1 Broadway, spent several days of this
week in making several of the important cities
in New England.
Lemuel Burrows, Jr., vice-president and gen¬
eral manager of Castner, Curran & Bullitt, Inc.,
No. 1 Broadway, left on Wednesday for White
Sulphur Springs, Virginia.
Among the retail coal companies recently in¬
corporated under the New York State laws is
W. O. Hughes Coal Company of Rome, N. Y.,
with a capital stock of $5,000. The incorpora¬
tors are Michael Duly, William O. Hughes,
and Charles B. Connor, all of Rome.
E. J. Berwind, president of the Berwind-
White Coal Mining Company of No. 1 Broad¬
way, is on the American Line steamship Phil¬
adelphia, due to arrive in New York this week¬
end. Mr. Berwind sailed about seven weeks
ago for Italy direct, returning via Paris and
London.
A recent dispatch from Elkins, W. Va., to
the Fairmont Times, states that Isaac T. Mann
of Bramwell, W. Va., president of the Poca¬
hontas Fuel Company, and Pocahontas Con¬
solidated Collieries Company, has a very bright
chance of landing the republican nomination
in that state for United States senator.
The golf members of the Whitehall Club of
which many of the New York coal men are
members, held a golf tournament at Oakland
Course, Bayside, Long Island, on Tuesday of
this week. George M. Dexter of Dexter &
Carpenter, Inc., was present in the interest
of the coal men, and gave an interesting ac¬
count of himself in two rounds of play.
Samuel E. Vincent of the well known firm of
Vincent Brothers, coal dealers of Bridgeport,
Conn., died on Monday morning. He had
reached the age of sixty-one. Besides being
prominently identified with the coal trade of
Bridgeport, he was very actively identified in
other lines of trade, having with his brother
Allen E. Vincent, established the first chain
of cash grocery stores in Connecticut. Mr.
Vincent was at one time president of the
Bridgeport Business Men’s Association, and
he was very active in that association, espe¬
cially as to legislative matters.
The Cape Cod Canal has again reduced its
tolls for bulk carriers and fishing vessels, the
reductions in many instances being over fifty
per cent for small sized craft. The privilege
of returning free when light is withdrawn, but
the regular rates that have prevailed for pass¬
ing light through the canal are sharply scaled.
For single passage through the canal the new
toll to vessels having aboard 800 tons or more
of cargo, is five cents per cargo ton, against
seven cents heretofore, the former right of
returning gratis through the waterway, if
empty, being withdrawn. Towage rates are
also lowered.
On Saturday, Charles C. Rose, superintend¬
ent of the coal mining department of the Dela¬
ware & Hudson Co., died at his home at
Scranton, Pa., after an illness of several
months. Mr. Rose was sixty-nine years of
age, and had been with the Delware & Hud¬
son Company for more than a quarter of a
century. About twenty-five years ago he be¬
came identified with the coal company’s en¬
gineering department, and it was only a short
time after this that he was put in full charge
of all the company’s operations. He was rec¬
ognized as one of the ablest men in the an¬
thracite field, and his death will prove a seri¬
ous loss to the anthracite industry.
Italian laborers still continue to leave the
mining regions to return to Italy to engage
in the war that their country is now waging.
Recently in these columns The Black Diamond
called attention to the fact that a large num¬
ber of Italian laborers were leaving the an¬
thracite region. Investigation made by the
Baltimore & Ohio railroad, discloses that more
than 5,000 Italian miners have left the West
Virginia regions served by this road. This in¬
vestigation was due to the fact that the offi¬
cials of the railroad found that the tonnage
of coal being shipped was not up to normal,
fiotwithstanding the very heavy increase in
tonnage for tidewater shipment for export.
It is stated that approximately 25,000 Italians
are employed in the coal fields of West Vir¬
ginia, and more than half of them under the
Italian laws are either compelled to return and
fight for their country, or face imprisonment
if they return after the war is over. West
Virginia is therefore faced with a serious labor
shortage.
Concerning the first statement of the Dela¬
ware, Lackawanna & Western Coal Company,
made public since the Supreme Court decree^
which was printed last week, at which profits
for the year ending June 30 were stated as
approximately ninety per cent on the stock,
an official of the coal company said that he
wanted to forestall a criticism which he ex¬
pected the statement to produce on the ground
that the profits reported by the Lackawanna
were on their face proof that the price of an¬
thracite is too high. “In the first place,” said
this representative, “we buy our coal at the
mines at the same price that all other com¬
panies pay. In the second, we have to sell
it in the hardest kind of a competitive mar¬
ket. The reason we make money is that we
have a very efficient organization, with over¬
head charges no larger than we would have
if we did a business of only a million tons
a year. Our profits come on the other ten
millions or so that we sell. In other words,
our selling cost per ton is so low that we do
not need a wide margin between cost and sell¬
ing price to make a good profit on our vast
business.”
No. 4]
THE BLACK DIAMOND
79
Philadelphia Trade.
Exports Are Looking Up But Business at
Home in All Sizes Is
Not Good.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, July 21.
The “export bug” seems to have bitten deep
in the trade with headquarters here and here¬
about. In offices where only a passing inter¬
est was shown in shipments abroad, deep
study is being given to freight rates charters
and the modus operandi of exporting. Even with
the equipment with which the harbor is provided
and all of the natural facilities that Philadelphia
has for exporting, there has not been exhibited
the bulk of attention to exporting coal as
has been shown in other cities of the Atlantic
range. True there were four or five firms soon
after the war broke out that paid attention
to the fact that coal, sooner or later, would
be needed abroad and in South America, and
these firms have gone about order getting and
transporting of coal without any great to-do-,
but with a goodly volume of results. Within
the past month at least ten firms have actively
entered the competition for the foreign orders
and with fair success. The record of the past
week on charters for coal hauling shows that
Philadelphia as a port can be expected to
load quite an amount of coal in the next few
weeks. Even more significant than this is the
fact that direct means is being taken by other
firms for coal shipments for the future. At
both Port Richmond and the Greenwich piers
this week, thousands of tons passed over that
are destined for foreign ports. At Richmond
in one day there were five boats tied up to
pier 18 that were receiving coal for five widely
scattered ports abroad.
Other than this, there has been no change
in the solid bituminous situation. Things are
dead, and that in all the broad scope of mean¬
ing of the word. Outside visitors have been
few and far between and that is rightly in¬
dicative of the lack of jump or interest in a
market. The pier situation has resolved itself
into the former situation prior to the first
week in July. True there is not as much coal
on demurrage there as was shown in the last
week in June, but some of it is getting danger¬
ously near that point.
The “line” business has jogged along at the
same easy running amount with the industries
taking only about 40 to GO per cent of require¬
ments. While great newspaper talk has been
made of the resumption of business by the big
steel plants, coal men say that this has not
been reflected in the least, locally by coal buy¬
ing orders.
Little or no change has been quoted on the
bituminous coals coming into this market. As
one dealer put it, “Our prices are at bed rock
and they can only move one way — and there
has been no advance noted here.”
Anthracite Situation.
Summer quietness has almost reached the
stage of monotony with the hard coal peo¬
ple. Orders are about as scarce as hen’s teeth
— and that is some scarce, as George Ade
would say. Western business has not been
at all what had been expected, and reports
from that section indicate a lack of interest
until the last of September. While this is
taken to mean that the dealers are not putting
out coal unless cash is paid, at the same time
it hurts here, for the reason that summer trade
with the west is always looked for to keep
the office forces busy.
Local retailers say that the past week will
show the smallest movement in deliveries of
any week in the year. . Filling of orders given
early in the season and contract business is
about the only work they find to do. Chest¬
nut and pea sizes are practically neglected,
and what sales are being made are way below
those quoted in circular prices. Some little
betterment has been shown in inquiries for
buckwheat and what strength is shown is for
egg and stove sizes.
Outside of one of the big companies, the
rest are working on short time at the mines.
and most of the independents are restricting
their output.
Philadelphia Trade Briefs.
J. W. Burch of the J. H. Weaver Company,
made a mid-week trip to New York.
Fredric Landstreet of the Punxsutawney
Coal Company, left early in the week for a
trip south.
.Senator Horace Tompkins of the Portage
Coal Mining Company, at Portage, Pa., was
one of the visitors of the week.
Fred B. Kerr of the Potts Run Land Com¬
pany of Clearfield, Pa., dropped in to say
“howdy” to trade acquaintances the latter part
of the week.
W. B. Ways of the Stoney River Coal Com¬
pany and Ben Stevens of Pullman & Stevens,
left last week for a fishing trip in the hinter¬
lands of West Virginia.
S. B. Gaucher of Pittsburgh, who is con¬
nected with the National Fireproofing Com¬
pany, and is interested in coal mines on the
Ohio River was a trade visitor.
E. J. Frauenhaim of the Logansport Coal
Company of Pittsburgh, was a visitor at the
coal offices of the city this week. Mr. Frauen-
heim is making a tour of the Atlantic Seaboard.
E. H. Brady, who has had considerable ex¬
perience in the sales field in New England,
has joined the forces of S. M. Martin & Co.
He will be located in the local territory for the
present though it is expected that with the
opening of the fall he will return to Con¬
necticut.
John Jamison and David E. Williams, Jr.,
of D. E. Williams & Co., went abroad three
weeks ago in search of export business. They
have communicated with the office here and
have announced their safe arrival. It is ex¬
pected that they will return'in the next couple
of weeks in accordance with their plans when
they were last heard from.
Under the provisions of the anthracite coal
tax law the first of the reports of the coal
companies of their output of coal for the mar¬
ket, subject to the tax, was received at the
office of the Auditor General of this state on
Tuesday of this week. Until further notice
these reports must be filed by the 20th of each
month or the mine owners stand liable to the
penalty clause.
In the death of Adam S. Body, who died at
his home in Shenandoah on Saturday, the Phil¬
adelphia & Reading Coal & Iron Company
lost the second of their division superintend¬
ents in the past two months. Mr. Boyd had
charge of the operation in the Ashland, Gilber-
ton & Girardville districts. The immediate
cause of his demise was heart failure. He was
one of the best known mining men in Eastern
Pennsylvania, and his advice was sought in
the big mining operations of the anthracite
district. He rose from the ranks. He was
55 years of age.
The New York golfers, who have “dared”
the golfers of the trade in this city to attend
a match to be held in the fall may have things
their own way, but there is a group of the
local coal men who are about ready to utter
a defi to those men of New York, who think
that they know something about playing
quoits. Three or four of the Philadelphia
men have become such enthusiasts in the
game that it is said, and on good authority
that they play well into the evening, and
when the pegs are no longer to be seen they
pin lightning bugs on them in order to con¬
tinue the game.
New England Trade
Boston, Mass., July 22. — {Special Correspond¬
ence.) — ^A further slowing up in the demand
for anthracite and bituminous is noted
throughout New England and particularly at
this point. Many of the wholesale houses have
taken advantage of the quietness and start
their employees on their summer vacations.
The easing up in the contract demand for
bituminous has taken the local trade some¬
what by surprise and many of the trade are at
a loss to give a satisfactory reason for condi¬
tions. One agent says the lack of new busi¬
ness may possibly be due to the fact that re¬
cent rains have given a large number of bitu¬
minous consumers ample water power to run
their plants. The real reason, another house
says, is that practically all of the big New
England contracts have been booked and that
for the next month or so wholesalers will be
obliged to depend entirely on odd-lot buying
from here and there.
Another unexplainable condition is that the
European demand for bituminous has fallen
off recently, as has the bunker business, and
the result has been a larger accumulation of
New River and Pocahontas at Hampton
Roads ports. As stocks at Southern ports
increase, shippers are more anxious to do bus¬
iness, and prices grow easier. Just now New
River and Pocahontas are being ofifered at less
than the circular price of $2.85 f. o. b. Hamp¬
ton Roads price. At Mystic Wharf, Boston,
the spot market is flat and nominal at about
$3.63 per ton on cars for Southern coals. Lit¬
tle Georges Creek is offered at that point and
prices for same are reported as firm at $3.90
a $4.00 per ton on cars. Pennsylvania bitu¬
minous is really weak, although no material
change in prices is noted. Shippers, however,
are very anxious to sell, which would indicate
large stocks on hand.
Many of the local wholesale anthracite
houses say the all-rail demand for prepared
sizes holds up remarkably well in view of the
semi-stagnant condition of the cargo end. We
know of one house alone that sold 125 cars of
coal within a week, which is a very creditable
showing when general conditions are taken
into consideration. But dealers have not lost
hope by any means. Prospective buyers have
been in the market and will undoubtedly place
orders before the end of July. Retail dealers
as a whole are busier than they have been and
in many instances are getting stocks down to
a point where re-orders will be necessary.
Of the prepared sizes, egg and nut seem to
be in better demand than stove. Pea is mov¬
ing better, but cannot really be called active.
Prices appear firm notwithstanding the volume
of buying, a fact undoubtedly due to the marked
restriction of output. Many of the mines are
operating but three days a week. The spot
market at Mystic Wharf is dull, with stove
and egg held at $6.10 per ton on cars, and nut
at 25 cents per ton more. The shipment of
anthracite to the Provinces has decreased no¬
ticeably, consumers located there evidently
holding off for lower freight rates. Rates,
however, are more likely to advance than de¬
cline.
The Southern freight rate market is senti¬
mentally easier, but rates have not changed
noticealily. The general asking rate for space
from Hampton Roads ports to Boston is
seventy-five to eighty cents per ton, while
from Baltimore to Boston they range from
seven to ten cents per ton more. The demand
for Southern charters is quieter. Anthracite
space is in lighter demand, but rates for same
hold firm at fifty to fifty-five cents per ton
from New York to Boston. Several of the
anthracite barge owners are getting return
cargoes of ice from Maine points. They get
about seventy-five or eighty cents per ton for
carrying ice from say Boothbay Harbor to
New York and have ten days to load and
discharge cargoes, during which freight rates
are paid.
New England Trade Notes.
The Hocking Coal Lands Company, of Au¬
gusta, with a capital of $250,000, has been
granted a Maine charter. The incorporators
are: Ernest L. McLean, Frank E. Southard,
both of Augusta and E. M. Leavitte, of Win-
throp. Me.
S. Austin Thayer, a Brockton coal dealer,
died recently after a long illness. Mr. Thayer
was 63 years old, was born at Randolph and
spent many years of his life there. He went
to Brockton fifteen years ago. Mr. Thayer is
survived by a wife, a son and two brothers.
From January 1 until June 30, the Island
Creek Coal Company turned out 1,013,221 tons
of bituminous; during the same period last
year the output amounted to 1,158,674 tons.
In each of the first six months of this year
there has been a decrease in production as
compared with 1914.
Diedrich Denker, president of the Meyer-
Denker-Sinram Company of New York and
Mrs. Denker left the middle of July for a two
months’ trip as follows: Chicago, Denver, Salt
Lake City, Yellowstone Park, Los Angeles,
San Diego, Santa Barbara, Delmonte, San
Francisco and then through the Panama
Canal to New York.
THE BLACK DIAMOND
[July 24
80
Buffalo Trade.
Buffalo, N. Y., July 22. — The anthracite ship¬
ments by lake were on a good scale last week,
amounting to 119,500 tons, which cleared as
follows: Duluth-Superior, 66,200 tons; Port
Arthur, 12,000; Green Bay, 11,000; Milwaukee.
10,000; Chicago, 8,700; Ashland, 6,000; Racine,
3,000; Hancock, 2,000; Kincardine, 500. The
week showed but little less activity than
recent preceding weeks, but the near future
is likely to show some decline. Upper-lake
docks are well supplied with coal and until
much of this is removed there will be a falling
off of shipments from this port. The large
companies are already curtailing their oper¬
ations, and though this is an early date for
such a step to be taken it is made necessary
by the fact that shipments began on a heavy
scale early in the season. The fall shipments
will be large in anticipation of trouble at the
mining regions when the scale comes up for
deliberation next spring.
Dealers are ordering scarcely any anthracite
at present and there is very little doing with
any of the companies. The outlook is for quiet
times in the trade in the near future and most
dealers are carrying fair supplies, which are
not being depleted to any extent.
Bituminous trade is slowly improving and
shippers notice that orders are being placed
with more freedom than several weeks ago.
Domestic business in industrial lines is in¬
creasing, while the number of plants busy
with foreign orders is also larger. Reports
from the steel trade are favorable and many
plants are now working nearly to capacity.
There is more strength than for some time
in the coke industry. The lake trade is still
on a small scale, with not much prospect of
betterment for several weeks. The different
ports are still fairly well supplied with coal
and not much interest is being taken as yet
in getting in more.
Coal prices are weak, particularly slack, but
there is no greater weakness prevailing than
heretofore. Some call the slack market
stronger than several weeks ago, but there is
much room for improvement. A pretty large
amount of consignment coal is being shipped
into the market and this feature depresses the
price situation. Spot business is on a very
small scale and there is always plenty of coal
offering. With trade showing some improve¬
ment, however, it is expected that prices will
soon show a gain.
Buffalo Trade Briefs.
H. S. Hastings, treasurer of the Shawmut
interests, was a visitor here this week.
The Roberts Bros.’ picnic, which was given
on July 17th, was the usual success, being
attended by more than 200 guests from many
points, including New York, Chicago, Pitts¬
burgh, Cleveland, Minneapolis and elsewhere.
This picnic was first given in 1891, and every
year since, except 1910, when E. C. and W.
T. Roberts, were both away, and C. T. Rob¬
erts, the youngest brother, was already in
Chicago. Begun as a fishing-day off among
friends in the coal trade, it after awhile set¬
tled down to a regular excursion around
Grand Island and down the Niagara River,
and in late years no other trip was thought of.
Closing as it possibly does this long series of
unbroken fine times, this picnic was perhaps
the most successful one of them all, and as
one of the attendants remarked was a great
tribute to the popularity of the Roberts Bros.,
there being so many busy men from such a
wide territory eager to accept the annual in¬
vitation. There was nothing formal about the
picnic, though the usual ball game was played
at the principal stop, the Smooth and Slick
Club, on Grand Island. The boat returned to
Buffalo, reaching her dock at sunset in time
for those who did not wish to leave at once
for home.
James W. Ganoe, a well-known Allegheny
Valley opertor, died suddenly at his home at
Phillipston, Pa., on July 18th, aged about 80
years. He had been engaged in mining oper¬
ations in that territory for forty years or so,
previous to which time he had been engaged
successfully in oil and lumber business. His
last mine, the Montrose, was sold out not
long ago on account of his ill health, but he
still owned the general store in Phillipston,
which he had maintained for a long time. It
was under the management of his son, Charles
Ganoe. For some time the deceased had not
been in good health, suffering from heart
disease, but against the better judgment of his
friends and perhaps himself, he attended the
Roberts Bros.’ picnic at Buffalo on the day
before his death. It was observed by all that
he was not his usual self and he went to the
hotel and to bed as soon as the boat returned
from the trip around Grand Island. He was
taken home with difficulty the next day, dying
soon after arrival there. He had been a cap¬
tain in the Civil War and bore an excellent
war record. His lively disposition and good
business talent made him well-known and
liked throughout Western Pennsylvania and
beyond. He leaves a wife and grown-up
children.
Baltimore Trade.
Baltimore, July 22. — (Special Correspondence.)
— Everything seems to point to better times com¬
ing in the coal trade. Whether this upward move¬
ment for improved conditions is coming gradually
or will arrive with a rush after the first signs of
betterment is a point of doubt. But most coal
men, despite the fact that demand and prices have
not improved to an appreciable extent as yet, feel
that there can no longer be a doubt that better
times are at hand.
The railroads are at last in the market for sup¬
plies in anticipation of heavier hauling, the steel
works are filling up with orders, general business
conditions are improved and the export coal trade
is holding up in splendid shape. During the past
week the Baltimore and Ohio Railroad came for¬
ward with a big equipment order for 2,000 steel
hopper cars, and this was frankly stated to be in
line with an expected great increase in coal ton¬
nage shortly. The Maryland Steel Works is busy
in many of its departments, with other big work
in sight, and the machine shops and smaller iron
plants of the city are working overtime on war
and other orders. It is not to be denied that
there is still a certain amount of depression in
other lines, but everything is now hopeful for a
change right along the course of trade.
That the export business of the port on coal
is holding up well is shown by the fact that
57,846 tons was exported from here during the
past week, an increase of about two thousand
tons over the week previous. That the month’s
shipments will exceed 200,000 tons is apparently
assured.
At the mining centers there is talk of this or
that mine starting up or of increasing production,
despite the fact that coal is still offering very
cheap in many places. Better grades, as is nearly
always the case, are beginning to tighten up, and
that the whole list will soon be touched for the
better is apaprently assured.
Prices to the trade at the mines may be quoted
as follows :
Fairmont —
Three-quarter .
F. O. B.
Mines.
. $0.80@ .85
. 70@ .80
F. O. B.
Baltimore.
$2.23@2.2S
2.13@2.23
1.88@1.93
Slack .
. 45@ .50
Somerset —
Best .
Good .
. 1.25@1.30
. 1.10@1.15
2.43@2.48
2.28@2.33
W. M. R. R.—
Freeport .
1.93@1.98
B. & O —
Freeport .
. 75@ .80
1.93@1.9S
P. R. R.—
Best South Fork .
Miller Vein .
Ordinary .
. 1.35
. 1.10@1.15
. .90
2.78 @1'. 83
2.08
Summer deliveries of fair proportion are being
made here of anthracite for household use, but
the steam sale business is very unsatisfactory.
Most dealers here have come to recognize the
summer season as a necessary evil, however, and
they are philosophical enough to say that most
of the delayed trade will be made up in the late
summer and early fall.
The Baltimore and Ohio’s $2,500,000 equipment
order, including 2,000 steel hopper cars, was dis¬
tributed between the American Car & Foundry
Company, the Pressed Steel Car Company, and
the Cambria Steel Company.
In what is claimed as a record for speed, the
Maryland Steel Company has delivered to the
■A.. H. Bull Steamship Company the new steam¬
ship Edith, one of nine vessels building by the
marine department of the works. The keel was
laid February 16 for this 338-foot ship, and by
completing her three months ahead of contract
time the steel concern wins a $9,000 bonus.
The first coal to be loaded here for some time
for the South African French colonies was
cleared during the week on the British steamer
Black Friargate.
Denver Trade.
Denver, Col., July 22. — (Special Corrspond-
cnce.) — While the local retail business still
continues dull, there seems to be a somewhat
better demand for all grades from country
dealers. Cold rains and in some instances
severe hail storms have served as sharp re¬
minders of the season only a few months
away, and there has been an increase in the
volume of orders which have also been more
liberal in extent.
Lignite operators report a slightly better
business for the week, average running time
for the district being about two days. There
is much activity throughout the Northern dis¬
trict in preparation for winter months.
Trinidad mines are all busy. Steel mills
requirements are unusually heavy and there
is a better output on storage. Walsenburg
and Routt county also report a decided in¬
crease in storage bookings as compared with
last week.
All grades of slack are in slow demand with
prices unchanged from last week.
The following prices are ruling for lignite
f. o. b. mines: For Denver delivery, lump,
$2.35 to $2.65; mine run, $1.50 to $1.65; slack,
$1.05 to $1.25. Points outside of Denver, lump,
2.50; mine run, $1.55 to $1.65; slack, $1.05.
Canon City District — Lump
For shipment May and June . $2.50
For shipment July and Aup:ust . 2.76
Add 26 cents to above prices for washed nut.
Nut
$2.00
2.25
Walsenburg District —
For shipment May and June . 2.50 2.00
For shipment July and August . 2.75 2.25
Washed nut 26 cents per ton additional.
Chestnut, $1.26 for entire season.
Trinidad Distri.-t —
For shipment May and June . 2.00 1.71
For shipment July and August . 2.00 1.71
Routt County District —
For shipment May and June . 2.60 2.01
For shipment July and August . 2.76 2.21
Western Slope District —
For shipment May and June . 2.25 ....
For shipment July and August . 2.60 ....
From Baldwin, shipments for points east of Denvet
are 76 cents per ton less than Walsenburg prices.
Denver News Notes.
Guy Fox, manager of the New Fox mine at
Marshall, in the Northern lignite district, is
lying at the point of death as the result of a
recent accident. A few days ago, while run¬
ning a train of cars down a grade at the mine,
he lost control of the locomotive and in some
unaccountable manner was crushed between
two cars. He was injured internally, but has
a chance for recovery.
The Rocky Mountain Fuel Company is
planning extensive improvements that will
make possible a greatly increased output this
fall and winter in its holdings in the North¬
ern lignite district. One hundred men will
shortly begin the work under the direction of
expert engineers. The Shamrock is to be made
a shipper by the completion of a railroad spur
new being built from the Puritan spur direct
to the Shamrock shaft. A much larger force
will be employed at both mines beginning
October 1.
Colorado coal operators have arranged to
meet the requirements of the new workmen’s
compensation law which becomes effective
August 1, by the organization of a mutual
insurance company at a recent meeting in
Denver. It will be known as the Mutual Li¬
ability Insurance Company.
Practically all of the operators in the state
will carry their own insurance rather than in
the state fund or in regular insurance com¬
panies. The Rocky Mountain Fuel Company
and the Victor-American, two of the largest
concerns in the state are members of the mu¬
tual organization. The Colorado Fuel & Iron
Company will it is said, carry its own insur¬
ance. Incorporation papers have been pre¬
pared and the following named as directors:
D. C. Brown, S. S. Murphy, Harry Van Mater,
S .M. Perry, Lewis A. Hayden, W. W. Curtis,
J. A. Osgood, William Harris and R. L. Snod¬
grass. The mutual company will write insur¬
ance for the operators on a basis of $4.60 per
$100 of their payrolls. It is stated that the
business can be carried for $4 on the $100
basis and a surplus accumulated to take care
of the first $25,000 loss and to reinsure the
excess. In the event of an unusual catas¬
trophe before the accumulation of $25,000, the
contingency will be met by assessment.
Vol. 55. No. 5
CHICAGO
COLUMBUS
JULY 31, 1913
NBW YORK
PITTSBURGH
$3.00 Per Year
Have Ohio’s Miners Killed Ohio’s Coal Trade?
At this time, a year ago, it seemed that the
coal mining situation in Ohio was tangled up
as badly as was possible. The facts are these:
The Ohio operators, along with those in west¬
ern Pennsylvania, a portion of Indiana, the
newer districts of West Virginia and eastern
Kentucky, had been paying the miners on a
lump coal basis. This practice had been in
vogue for over fifty years. The mines had
been equipped accordingly. The furnaces and
habits of coal buyers had by long usage been
fixed to accord with this system. Without
consulting the wishes of the consumer: with¬
out knowing whether the coal operators could
finance the change in mine equipment; and,
without any assurance that competing districts
would make a similar change, the miners had
procured the passage of a law which substi¬
tuted the mine run for the lump coal basis of
paj'inent.
It seemed, then, that the Ohio mines were
placed in as embarrassing a position as was
possible. That is, to make the change, it
would cost more to produce coal because new
practices were introduced; the investment
would be larger because of new and dififerent
screens; the relations with customers would be
disrupted because new sizes would demand
new furnaces; and the operators would be
thrown out of competition with the other mines
in the other districts because of changes in
prices, sizes, etc.
What the Effect Was.
It seemed inevitable that the operators of
Ohio had been ruined by one thoughtless act
of • legislation. After a year and a little more
under the new system, it is necessary to make
another survey of the Ohio situation. That
proves that the present plight of the operators
is even worse than it was a year ago. Indeed,
if a death blow has not been struck at the coal
mining business in Ohio, some miraculous
change must take place at once, first, in the
sentiment of the body of the miners, and, sec¬
ond, in the attitude of the consumers of coal
toward prices.
The present situation in Ohio is so dis¬
turbing it is necessary to take it apart and to
look at it in detail to get a comprehensive idea
of it. As a foundation, the present situation
in the state must be outlined.
Ohio has several producing districts but
these can really be divided into major districts.
Those are the Hocking Valley field and the
affiliated mines and the Pittsburgh No. 8 or
eastern Ohio field and the affiliated mines.
In August, last year, the Hocking Valley
group signed up with the miners. As a conse¬
quence of agreeing to pay the miners on the
mine run basis, all of the tipples had to be
changed. A good part of that work has been
done within the last year.
After a year, the Hocking group finds that the
selling price of coal will not pay the higher
wages of the men and interest oyi the larger in¬
vestment. About half of the mines in the
Hocking district are closed" the other half
may be forced out of business before long.
The eastern Ohio, or the Pittsburgh No. 8
field, did not surrender to the miners but en¬
dured a strike that lasted over a year. Today,
a temporary scale has been agreed ui)on. But
the whole district was out of the market so
long that its business has been taken, in major
part, by operators in other fields. Some of its
operators had become discouraged; they have
closed permanently their mines and have in¬
vested what money they could command in
new properties in West Virginia. They thus
have kept some of their old customers but to
do it had to abandon their Ohio properties.
The Gallagher Bill.
The facts of Ohio are that about half only of
the mines are now in operation a part of the
time. Those that are running have no possi¬
bility of paying anything on the investment.
In the mftintime, the situation was presented
By Disregarding Competitive Conditions
and by Forming a Partnership With Poli¬
ticians, They Have All But Hopelessly
Entangled Conditions.
to the officials of the state government. They
saw that one of the state’s biggest businesses
was being ruined by this thoughtless piece of
legislation. Accordingly they repealed, in
effect at least, the Green anti-screen law and
passed in its place the Gallagher law. This
permits individual operators and individual
miners to make contracts on any basis they
please and hence regardless of the mine run
basis demanded by the Green act.
There was possible this much salvage out
of the wreck: The mines which remained on
strike — those which lost their business — were
given the privilege of making proper labor
contracts in future. Also, new mines or those
hereafter opened, if any, in Ohio, will have the
limited advantage of that statute.
However, the Gallagher bill cannot recall the
agreement made with the Ohio miners in the
Hocking field. It cannot persuade the men to
change the character of the contraet in future
and thus to surrender the advantage gained by
force of law. It cannot certainly recall the
investment in tipple equipment which _ the
Hocking operators had to make. Those mines,
in consequence, are still in a position which
is potentially, if not actually, one of ruin.
The Miners’ Point of View.
These are the uncomfortable facts in the sit¬
uation. But the reason for this imposition is
not clear until we take into eonsideration the
point of view of those who forced this change.
Society, from time immemorial, has tried to
consider business from three points of view — •
that of the worker, that of capital, and that of
the consumer. These were considered the
three co-ordinate rights, equal in force and ef¬
fect. They made a triangular consideration.
By later developments we have introduced a
fourth factor — the carrier. Thus the triangle
is changed to a quadrangle. Today no ques¬
tion is considered settled, with any degree of
permanenej", until there are considered the co¬
ordinate rights of the worker, capital, the
consumer and the carrier.
In the Ohio mine situation the rights of all
others were disregarded while the worker with
his “me first and my rights above all” compli¬
cated the situation by his ruinous greed.
This is a harsh statement unless it is ex¬
plained by taking apart the position of the
laborer and analyzing what he calls his
“rights” as opposed to the three other and co¬
ordinate rights which must be considered in
any business situation.
The Wage Earner’s Share
In a legal sense, it is considered that every
worker has a right to a living wage. But y^y^liat
is a “living wage” is a moot cpiestion, first, be¬
cause the standard of living has changed, and,
second, because three other rights to a “living”
must be satisfied from the selling price of coal.
For example, capital has a right to a living
return on investment. The carrier has a right
to a living rate for its services. The consumer
has a right to a living price at which he buys
his coal.
Thus a miner might consider that a “living
wage” for him would permit him to own a
commodious, modern house and to enjoy not
only the comforts but the modern luxuries of
life. While those things are desirable, and
he cannot get them all if to do so he had to
strip the other three of their equally definite
rights.
In the more vital sense, the right of the
worker to what he considers a “living wage”
is modified by what the miners are willing to
accept in a competing field. For example,
Ohio cannot pay .$1 a ton for producing coal,
if West Virginia is paying forty or fifty cents
a ton.
The Ohio miner, when he made his demands,
left out of consideration the co-ordinate rights
of capital, of the carrier, of the consumer, as
well as what was the common wage paid in the
big competing field. Instead he went head¬
long into a conference with the operators and
tried to compel them to pay him more than
common sense indicated the business could
stand. When it was clearly proved by the
operators that the demands were impossible,
the miners went to politicians of Ohio and
formed a partnership. The implied considera¬
tion was that the union vote would he cast for
any man or party that would enact a law com¬
pelling the operators to surrender to the
miners’ union in the matter of the mine run
basis.
The Material Consequence
This attitude of the miners began the com¬
plication which grows as the weeks pass. Now
that the miners have plastered their self-inter¬
est over the Ohio, mine mouths the other three
factors in the quadrangle are coming to de¬
mand consideration of their rights, also. In¬
vestors are saying: “What about us? Are we
to continue to invest our money for coal land
and coal producing equipment to turn all
of the rewards oveg to the laborer? He has
nothing invested. He cannot work even if we
do not provide him a working place. Is it a
proper conception of justice in modern so¬
ciety that we shall give him the coal to mine
and the coals, while he takes all the return?”
Next comes the carrier, and says:
“What about us? Are we to invest money in
rights of way, railroad tracks, cars, locomo¬
tives, distributing yards, and are we to employ
men to man these trains and to carry and dis¬
tribute this coal solely that the miners may be
given employment? We are not interested in
the mines. We are not even employing these
men. We have nothing whatever to do with
them. Are we out of consideration for somq
one not connected with us to be compelled to
surrender even a hope of return that they may
get all they want?”
After the carrier comes the consumer, who
asks :
“What about me? I have been paying higher
prices for coal for many years. I am paying
today almost the same price for coal now that
I did twenty-five years ago. All the while coal
producing machinery has been improving
the process of coal production. With each
improvement in mechanism the cost of pro¬
duction naturally should come down. I have
l^atiently liorne the old burden for years. Now,
I think it about time 1 should get some bene¬
fit of modern conditions. I should pay a lower
price on coal than I have been paying. But,
these miners, who are human beings the same as
I am and who have no larger family obliga¬
tions than I have, ask me to waive my rights
in modern inventions that they may get all
the benefit. They ask that I g,o even further
and actually pay more for the coal than 1 have
been paying. The only reason is that they
may satisfy their jjersonal desires. It is an
outrage even to ask me to surrender my ex¬
pectation of a decrease in price. It is out of
the question to expect me actually to pay an
increase.”
The Discouraging Truth
But these considerations — sound as they are
— are swept away by two major facts. One of
them is that the Green law was on the statute
books for just long enough to change the
whole Ohio sittiation to favor of the miners.
That is, regardless of its sound and logical
plea, capital has been robbed of all present
and possible return on Ohio coal. Despite the
pica — and the logical one — of the railroad, the
(Concluded on page 87.)
82
THE BLACK DIAMOND
[July 31
Decision of the Commission On Spotting Charges.
The first impression of the decision of the
Interstate Commerce Commission in the mat¬
ter of the spotting charge was that it was a
wholesale victory for the shippers and receiv¬
ers of freight. An excerpt of this decision was
printed last week.
A careful reading of the decision does not
bear out this assumption. The commission
divides its decision three ways:
First, it shows that under ordinary condi¬
tions the line rate covers the placement of
cars whether they are on private tracks or on
railroad tracks.
Second, it says that if industrial tracks were
not provided, all the business, would have to
be done on the railroad’s tracks. Those at
present are incapable of doing the work and
the railroads could not provide the additional
facilities without an enormous increase in cap¬
ital. Also receivers and shippers of freight
announce definitely they would not use public
tracks even if provided.
These two parts of the decision indicate a
victory for the protestants in the case of the
proposed spotting charge.
Third, the commission shows that two
classes of switching charges are performed.
One of them is the first placing of the car for
loading or unloading. This, it says, is covered
by the line rate and the railroads in future will
not be permitted to increase the charges for
that service.
The second is a shifting of the cars after the
first placement in order to spot them exactly
for the convenience of the shipper or receiver.
This is an additional service not covered by the
line rate and for which the railway may charge
if it chooses.
The commission hints at a possible sched¬
ule which the railways may devise that will
increase the rates for service not covered by
the line charge.
Thus the spotting case is not ended but
merely begun. The railroads undoubtedly will
conform to that suggestion and there will be
need for contention over the justice of the
rates which the railroads will propose.
The commission even hints at the ultimate
desirability of separating line charges from
terminal charges but says that before that is
possible there must be first a careful compila¬
tion of cost on the new basis or one that will
show what line service costs and what terminal
service costs. The rates must bear a certain
relation to what it costs to carry goods in the
two divisions.
The decision of the commission failed of
unanimous support because Commissioner
Harlan dissented.
The report of the commission was in major
part :
“This proceeding involves the propriety and
reasonableness of a proposed charge for placing
cars upon industry spurs or private sidings, or
upon the tracks of industrial plants, at convenient
points for loading and unloading.
“This charge, which is called a spotting charge,
is proposed by the principal railroads in central
freight association and trunk line territories, to
become effective at different dates from April 20,
1914, to July 15, 1914, inclusive. The respond¬
ents announce in the suspended tariffs that they
were filed to comply with a suggestion of the
commission in the Industrial Railway case. The
proposed spotting charge is five and one-half
cents per ton, minimum $2 per car, and the serv¬
ice for which the charge is proposed is defined in
the suspended tariffs as 'follows :
“ ‘Spotting service is the service beyond a rea¬
sonably convenient point of interchange between
road haul or connecting carrier and industrial
plant tracks’ and includes :
“‘(a) One placement of a loaded car, which
the road haul connecting carrier has transported,
or
“‘(b) The taking out of a loaded car from
a particular location in the plant for transporta¬
tion by road haul or connecting carrier.
“‘(c) The handling of the empty car in the
reverse direction.’
“The industries to which the charge applies arc
divided into three lists. The first of these lists
appears in the tariff of the Pennsylvania Railroad
Company, which may be taken as typical, under
the heading : List of industries having ‘industrial
plant tracks’ connected with the tracks of these
companies on which these companies performed
spottin.g service in the past and on which they
will, if desired, continue to perform such service
The Line Rate Covers the First Place¬
ment, But Any Other Switching Service
May Be Subject of an Extra Charge.
on and after the effective date of this tariff at
the charge provided herein.
“The second list appears in the same tariff un¬
der the heading : List of industries having 'in¬
dustrial plant tracks’ connected with the tracks
of these companies on which the industry has
performed spotting service in the past. The
charge of these companies for performing spot¬
ting service for the industry on its plant tracks
connecting directly with the tracks of these com¬
panies will be as per this tariff, provided the per¬
formance of this service by these companies is
shown to be practicable and is a, greed upon.
“The third list appears under the following
heading: List of industrial railways (incorpo¬
rated). These companies will perform ‘spotting’
service on or over the tracks of these railways
only by special agreement.
Basis of the Charge.
“The basis of selection of industries, if there
may be said to have been any such basis, varied
with the different respondents. The necessity
for an intraplant service in addition to the move¬
ment of cars incident to the receipt and delivery
of carload freight seems to have been controlling
in some cases, but in general the industries were
arbitrarily selected, and range from the ordinary
mill or factory with a single spur or private sid¬
ing to the large iron and steel industries having
an interior system of rails called a plant railway.
“Considerable testimony was presented by both
respondents and protestants with reference to
the physical layout of the tracks over which the
service is performed, the character and extent of
that service, and the approximate cost thereof.
“It does not appear that the terminal facilities
of the respondents, exclusive of industry spurs,
private sidings, and tracks of industrial plants,
are now adequate for the receipt and delivery of
all carload freight, which they have been accus¬
tomed to receive ana deliver upon such tracks at
convenient points for loading and unloading , and
respondents do not show that they could provide
such terminal facilities, but some of the protest¬
ants testified that if such terminal facilities were
provided by the carriers they would not use them.
Railways Seek Advice.
“It is admitted by the principal respondents
that the proposed charge and also the lists of
industries named in the tariffs are tentative
merely, and that if the tariffs should take effect
as filed unjust discrimination would result in that
there are many industries not named in the sus¬
pended tariffs for which the respondents perform
without an additional charge therefor the same
service for which they propose to require the in¬
dustries named in the suspended tariffs to pay
the spotting charge in question. But while these
respondents concede that the proposed tariffs can
not he justHied, they ask us to indicate hozu far
they may go in imposing spotting charges.
One of the respondents, the Chesapeake & Ohio
Railway Company of Indiana, insists that its pro¬
posed charge is justified by the mere fact that the
industries upon which it proposes to impose the
charge are located upon a private track, which
it does not own or control, and which is not a
part of its terminal facilities. This respondent
concedes that the line-haul rate covers the trans¬
portation to and from the point of connection of
its tracks with the track on which the industries
are located and which it claims to be a private
track, but it insists that it has no right to per¬
form any service over a private track without
making a charge therefore in addition to the
line-haul rate, and that it not only may hut must
add to the line-haul rate a reasonable charge for
the switching of cars hetzveen the industries in
question and point of connection of its tracks
Zi'ith tracks on zvhich the industries are located.
Line Rates Cover.
“The protestants insist not only that the pro¬
posed tariffs can not be justified, but that the
line-haul rates cover the placement of cars upon
industry tracks at convenient points for loading
and unloading without regard to the size of the
plant or the ownership or control of the tracks
over which the cars are moved, and that no charge
for the spotting service in addition to the line-
haul rate could be justified.
“It has long been the custom of carriers in this
country to receive and deliver carload freight
upon spur tracks leading to private industries at
convenient points for loading and unloading with¬
out imposing any charge for that service, in ad¬
dition to the line-haul rate, and in the Los An¬
geles case (18 I. C. C., 310), we held that where
this service is merely a substitute for team-track
receipt and delivery of carload freight the line-
haul rate covers the service for the reason that
rates generally in this country have been con¬
structed upon that basis. Our order in that case
was upheld by the Supreme Court Los An.geles
case, 2.34 U. S., 293.
“The mere size or complexity of the industry
is not controlling in determining whether or not
the line-haul rate covers the receipt or delivery
of freight at the door of the plant. The service
involved in the placement of cars for loading or
unloading at an isolated industry to which a single
spur leads may be as great as that rendered in
the placement of cars for loading or unloading
in a large plant having an intricate system of in¬
terior tracks. Indeed there is testimony tending
to show that by reason of greater density of traf¬
fic and greater tonnage the cost of spotting at
the larger industries is less per car than at
smaller industries. At the large industries the
trunk line may render interplant services in the
movement of cars from place to place within the
plant during the processes of manufacture which
it has no occasion to render at smaller industries,
and for such services an additional charge should
be made; but where the service rendered is
merely a substitute for the service, which would
be required if the movement were to or from a
team track, an industry spur, or a private siding,
nothing should be added to the charge for the
line haul.
“As existing rates must be deemed to have
been constructed to cover the customary place¬
ment of cars at factory doors, whether upon an
industry spur or private siding, or upon the
tracks of an industrial plant, and the outward
movement of cars from such tracks, without re-
.gard to the size or nature of the plant, to now
add a charge to the line-haul rate for that service
would be revolutionary.
Commission’s Suggestions.
“While we have from time to time called the
attention of the carriers to the possibility of in¬
creased revenues from certain sources, and have
suggested that it might be that the carriers ought
to make a charge in addition to the line-haul
rate for some services in connection with the
movement of cars within industrial plants, for
which no such additional charge is now made,
zee have never intended to suggest that an addi¬
tional charge zoould be proper for serz’ices, which
by long continued general custom and usage have
been treated as covered by the line-haul rate.
“In General Electric Co. v. N. Y. C. & H. R. R.
R. Co. we stated that common carriers could not
be called upon as a part of their contract of
transportation to make deliveries through a net¬
work of interior switching tracks constructed as
plant facilities to meet the necessities of the In¬
dustry, but the case did not require a decision of
that question. The point actually decided was that
the complainant was not entitled to an allowance
from the carrier for a service, which the carrier
was ready and willing to perform, and which
the complainant performed because it was not
convenient for it to permit the carrier to perform
the service.
“As said by the Supreme Court in Atchison
Railway Co. v. United States, whatever trans¬
portation service or facility the law requires the
carriers to supply they have the ri.ght to furnish,
and it does not follow, therefore, that because
the line-haul rate covers the movement of cars
incident to the receipt and delivery of carload
freight on industry spurs, or on the interior
tracks of industrial plants, that the owner of the
property transported may in every case receive
an allowance from the carrier when he per¬
forms that service.
A Question of Allowances.
“In Industrial Railways case, the commission
also expressed the opinion that the line-haul rate
docs not cover the movement of cars incident to
the receipt and delivery of carload freight at
large industrial j)lants, where the movement is
through a network of interior tracks, but in that
case also the question presented was one of al¬
lowances, and we did not undertake to determine
the number of tracks over which the cars must
move prior to their receipt or delivery by the
carrier in order to deprive the owner of the
property transported of the right to an allow-
No. 5]
THE BLACK DIAMOND
83
ance for the service. We did, however, in that
case, recognize the fact that the line-haul rate
may cover the service of spotting a car at the
factory door on a private siding, as we there
said :
“ ‘Under the common law as construed in the
practically unanimous decisions of the courts, a
delivery of carload freight to a shipper having a
private siding is made by shunting the car upon
the switch, clear of the main tracks. All services
upon the siding beyond that point, in placing the
car for loading or unloading at a particular spot
convenient to the shipper, are what may be called
volunteered services in the senfe that they are in
addition to the main-line haid and in excess of
any obligation of service by the carrier at com¬
mon law. Nevertheless, the custom of making
deliveries at the warehouse or factory door on
private sidin.gs is one of long standing in this
country, and under certain language in the act it
is possible that the carriers may be required upon
reasonable compensation, to do this spotting as it
is called. We find no authority, however, Eng¬
lish or American, that holds or intimates that the
line carrier, in connection with the main-line haul,
is under any obligation to spot a car at the fac¬
tory door on a private siding except upon rea¬
sonable compensation included in the rate itself
or set Up in the form of a special charge.’
Conditions Variable.
“There may be cases in which the spots at
which cars are placed for loading and unloadin.g
in complex industries are so located that the re¬
quest for the receipt and delivery of carload
freight at such spots could not, in view of general
usage, be regarded as reasonable, and where a
charge for the spotting service in addition to the
line-haul rate might therefore be justified, but the
mere fact that an industry is complex, or that it
requires an interplant service in addition to the
receipt and delivery of carload freight, is not
sufficient to justify an additional charge for the
placing of cars at the door of the industrial
plant for the receipt or delivery of carload
freight. The line-haul rate, however, covers only
one placement of the car for loading or unload¬
ing, and an additional charge should be made
for each additional placement of the car for that
purpose.
“The mere fact that many individual plants are
operated together as a single industry does not
deprive the industry of the right to such a serv¬
ice in the receipt and delivery of carload freight
at each of the several plants as that plant would
be entitled to have if it were operated separately,
unless the collective operation so far removes
the necessity for such a service as to make it
unreasonable for the industry to demand the
service.
“To permit the carriers to add to the line-
haul rate a charge for the movement of cars
incident to the receipt and delivery of carload
freight at industries selected because of their
size or complexity, or upon some other basis
equally uncertain, while treating a like service at
all other industries as covered by the line-haul
rate, would result in unjust discrimination of a
flagrant character.
The Private Spur.
“The argument that while the line-haul rate
may cover the movement incident to the receipt
and delivery of carload freight when that move¬
ment is over an ordinary industry spur, it does
not cover a like service when the movement is
over the interior tracks of an industrial plant,
is founded upon the assumption that the carrier
and the industry have the joint use of the in¬
dustry spur while the interior tracks of the in¬
dustrial plant are used exclusively by the indus¬
try. The fact, is, however, that the service,
which the carrier renders in the movement of
cars over the interior tracks of the industrial
plant for the purpose of receiving and delivering
carload freight of the industry is public service,
and the tracks are used both for that public serv¬
ice and for the private purposes of the industry.
It is immaterial that the carrier may not use
the tracks for all the purposes for which it uses
the ordinary industry spur. The difference is
merely one of degree and not of kind.
“Especially ought the tracks of the industrial
plant to the extent that they are used by the
carrier for a public service be treated as a part
of its terminal facilities where the carrier docs
not show that it would be possible for it to pro¬
vide the necessary terminal facilities in any
other way.
“The public interest is served in many ways
by permitting the carriers to use the tracks of
industrial plants as a part of their terminal
facilities. The exclusively owned terminals of
the carriers are thereby relieved of a heavy bur¬
den under which they would either break dozen
completely or be so congested as to greatly in¬
convenience shippers who are compelled to re¬
ceive and deliver their freight in those terminals.
The distribution of terminals also tends to pre¬
vent the undue concentration of industries and
consequent concentration of population, thus aid-
in.g the solution of one of our social problems.
Proposed C. & O. Charge.
“The proposed spotting charge of the Chesa¬
peake & Ohio Railway Company of Indiana re¬
quires separate consideration. The industries to
which it is proposed to apply this charge are
located on the tracks of the Muncie & Western
Railroad at Muncie, Ind. In in re Muncie &
Western Railroad Company, we held this road to
be a mere plant facility of the principal industry
located thereon, and not entitled to a division
of joint rates with the trunk lines. That case
is now pending on a petition for rehearing by
which we are asked to reconsider that finding.
“There are only two industries on the Muncie
& Western, and these industries are served by
two belt lines in addition to the Muncie & West¬
ern. The principal one of these two industries
has a large plant, and the three lines referred
to serve different parts of the plant. When the
movement is over either of the two belt lines
the Chesapeake & Ohio of Indiana absorbs the
switching change of that line and gives the ship¬
per the Muncie rate, but it now proposes to add
to that rate a minimum charge of $2 per car
when the shipment moves over the Muncie &
Western. If the Muncie & Western is a mere
plant facility, the line-haul rate of the Chesa¬
peake & Ohio of Indiana to and from Muncie
covers the movement of cars incident to the re¬
ceipt and delivery of freight on that track. If
that road is a common carrier, the addition to
the line-haul rate of a charge for the switching
of cars over that road to and from industries
located thereon would create an unjust discrim¬
ination so long as the trunk line absorbs the
switching charges of other roads, which serve the
Herein are given some points in the official
call for the meeting of the American Mining
Congress just issued by James_ F. Callbreath,
the secretary:
“A meeting of the active members of The
American Mining Congress is hereby called
to meet at the Exposition Memorial Audito¬
rium, San Francisco, Cal., September 21, 1915,
at 7:30 p. m., for the purpose of electing six
directors; one director to serve for a period
of one year to fill vacancy and five directors
to serve for a term of three years, to succeed
Mr. D. W. Brunton, Mr. George H. Bern, Mr.
Faison Joslin and Mr. Harry L. Day, whose
terms of office expire, and for the transaction
of such other business as may be properly
brought before said meeting.
Instead of assigning certain times for the dis¬
cussion of the several subjects a general program
will be outlined, and at the first meeting the con¬
vention will decide how much time shall be given
to the discussion of each subject.
The Public Lands Question.
“Whether the Federal Government shall
lease the coal, oil and phosphate lands and
water powers, or whether these shall pass into
private ownership and subject to the state tax¬
ing power, is a question of vital importance to
the West.
“As an illustration: The coal reserves of
the State of Wyoming are estimated at 424,-
085,000,000 tons. Let us suppose that twenty-
five per cent of this estimate is available for
production. A royalty of two cents per ton
to the Federal Government would amount to
two billion dollars. If ten per cent of the esti¬
mated coal were to be placed on the market
during the next hundred years, it would mean
at two cents per ton royalty, eight hundred
million dollars — or eight million dollars annu¬
ally, to be derived by the Federal Government
from Wyoming, while Pennsylvania and the
other great coal producing states of the East
would go entirely free from paying similar
tribute,
“Ten per cent of the estimated coal reserve
of the states of Wyoming, Montana, Colorado
and Utah, at two cents ner ton royalty, would
net the Federal Government twenty-five hun¬
dred million dollars, — one-third more than the
aggregate bonded indebtedness of all the states
and cities of the United States.
“The water powers of the west are more val¬
uable than its £.oal reserves, and a most modest
same industries, as it now does, the service in
each case being substantially the same. The
only reason which the Chesapeake & Ohio of
Indiana gives for imposing the proposed charge
for the switching of cars over the Muncie &
Western Railroad, to and from the industries
thereon, while it absorbs the switching charges
of other roads, which serve the same industries,
is that such other roads are common carriers,
while the Muncie & Western Railroad, as the
Chesapeake & Ohio of Indiana claims, is only a
plant facility. It is unnecessary, therefore, in
this proceeding to determine whether the Mun¬
cie & Western is or is not a common carrier, as
in either case the proposed spotting change has
not been justified.
The Broad Question.
“With the growth of terminal areas and the
consequent increase of terminal expenses, there
may be a growing need for a separation of the
charges for line-hauls from the charges for ter¬
minal services, and a graduation of charges for
terminal services so that each industry within
the terminal area will pay in proportion to the
service it receives in addition to the line-haul,
if such a system should in the future be deemed
to be preferable to what now obtains ; but be¬
fore that could be done there would have to be
a separation of the cost of the line-haul from
the cost of the terminal service, and a complete
reconstruction of rates.
“We conclude, therefore, and find that the
respondents have not justified the suspended
tariffs, and an order will be entered requiring
those tariffs to be cancelled. The respondents
may, however, file new tariffs providing for spot¬
ting charges in those instances in which the ter¬
minal services performed exceed the services
which under established custom is, or should be,
performed for the line-haul rate, in accordance
with the views expressed in this report.
“Commissioner Harlan dissents from the con¬
clusions of the commission in this proceeding
and will later file a separate report.”
royalty will net a fabulous income, all of which
will be a special tax upon the western states
for the support of the National Government,
not imposed on the eastern states.
“This is one of the least important reasons
why the west protests against the proposed
leasing and water power bills. The question
is one which has direct bearing upon mining
development and operation, and should re¬
ceive the serious consideration of the con¬
vention.
Co-operation in the Coal Industry.
“Destructive competition is one of the con¬
trolling elements in creating an appalling con¬
dition Ill the bituminous coal industry. First,
2,500 lives are sacrificed and more than 100,000
men are injured annually, in the coal industry.
“Second, approximately 200,000,000 tons of
coal are wasted annually, being sufficient to
exhaust about 35,000 acres of our best coal
lands.
“Third, more than 500,000 workmen engaged
in the bituminous industry are idle more than
100 days each year.
“Fourth, more than $900,000,000 of capital
engaged in the bituminous industry is idle
more than 100 days each year.
“The peculiar conditions surrounding- this
industry serve to aggravate these conditions
which tend directly toward destruction of the
small producers and the creation of a perma¬
nent monopoly in coal production. Complete
co-operation between operator, miner and con¬
sumer is essential to the best results. The
question is national, not local.
“With the market price of coal lower than
in any other large producing county, it would
seem that export coals lying near the seaboard
should absorb the trade of countries lying
much nearer to us than to the countries which
are now furnishing the larger part of the coal
used. The Latin-American countries during
1914 imported approximately $911, 000. 000 worth
of coal, of which the United States supplied
less than twenty-five per cent.
“The Federal Trade Commission is espe¬
cially authorized to investigate conditions in
competing countries which permit trade com¬
binations, but lacks authority to approve sim¬
ilar combinations, in order that tlie business of
this country may be put upon an equal com¬
petitive basis. A discussion of the means
through which our export trade may be so
developed as to serve the public good will be
welcome.”
Convention of Mining Congress Called.
THE BLA( K DIAMOND
.S4
Uniform System of Accounting and Costs/
By Homer D. Jones.
During the past few years, I have been advo¬
cating uniform costs and systems in the coal
trade, sincerely believing that the coal business
is just as dignified as hanking or railroading, and
it can also be conducted on as scientific a basis,
conscciucntly when we as a whole rise above our
present slip-shotl methods of liookkeeping and
accounting, the industry will gain the respect
and dignity from the public that it deserves.
Respect for the coal industry will displace ridi¬
cule wlien the managers and proprietors have
overcome timidity and indolence. Many coal
men are timid, as it takes hackl)one to charge
among the monthly expenses all the proper items
and their proper amounts and then to look the
actual net results squarely in the face. 1 also
say indolence because the “W hat's the use feel¬
ing" has predominated the managers and pro¬
prietors of many firms.
It was certainly a step in the right direction
toward a Uniform System of Accounting Costs
when the Corporation Income tax law was passed.
Many of us here to-night, were and are by law,
compelled to do and know much about our busi¬
ness that should have been voluntarily learned
long ago.
Some dealers and perhaps some coal operators
have said or will say, “How does all this in¬
formation and bookkeeping help me make more
money”. One answer from a retail standpoint
is that it will make the retailer a better salesman
or sales manager and the operator will become
a better and more economical coal producer and
on this single phase of the subject, an evening or
more could be profitably spent.
Someone has said— “Knowledge is Power
These words certainly will prove their worth
when it is vitally important to convince a govern¬
ment commission or perhaps our legislatures that
the mining and selling of coal has been done
in a very deplorable and lax manner from the
standpoint of profit and loss.
Unless we keep books properly and frorn them
make uniform records, how are we to intelli¬
gently compare the costs of cartage by wagon
to that of delivery by auto trucks, and how are
we to discuss the cost of and improve the meth¬
ods of handling hard and soft coal by machinery,
which is necessary in many yards.
There are many other topics for discussion,
such as depreciation, also items of expense, that
can be greatly reduced if it were possible to com¬
pare costs and reports based on a uniform plan.
Office, vard and delivery methods can be done
better and at less expense by the systematic get¬
ting together of the various managers with the
desire to really do something along the line of
uniform methods in accounting, instead of wait¬
ing for some other fellow or firm to try work¬
ing it out alone.
The Laundry Association, a national organiza¬
tion has accomplished much along this line and
I am told that the printers also have a uniform
system of cost figuring.
It is surely wisdom to know all you can about
your own business and then to learn something
as to how your neighbor coal man conducts
his business and right here T want to say a
good word for the various coal trade papers and
magazines who have printed many good arti¬
cles on the subject of Costs and Systems, both
for the operator and retail firms.
The head of every firm, particularly the sales
manager selling either a large or small tonnage,
should either read or have brought to his atten¬
tion by an employee appointed to that duty, the
many good articles that these publications will no
doubt continue to publish under the heading of
Costs and Systems.
Figures are seldom interesting, but I can from
experience, assure you that if you once start
to know the cost each month to run your business
and itemizing the expenses, you will continue to
do so, as it soon becomes a habit, in fact a fas¬
cinating pastime to compare figures on one month
with another.
It is surprising that so few retail dealers know
from their actual book figures what it is cost¬
ing them to deliver or handle the average ton.
A few dealers close books every six months,
but many oidy once a year and then do not
bother nor care to take the necessary time to
review and analyze the balance sheet and learn
why the business shows a profit or loss. Very
*An address before the Coal Convention in Chicago,
July 1*.
few will figure costs correctly, unless they fol¬
low the cost systems of up-to-date and well
regulated firms.
It is gratifying to learn that several retail
firms in Chicago know every month in detail,
what the average firm knows hut once a year.
They believe that if it necessary annually to
know the conditions of business, that once a
month is twelve times better. Undoubtedly the
most important thing a business man should
know, is liis actual cost of doing business, with¬
out this accurate knowledge, he cannot tell with
any degree of certainty whether he is making a
real profit. It seems to be human nature for the
Homer D. Jones.
large majority of us to believe that we can
do business at less expense per ton than we
are really doing it.
This inclination is probalily caused by our lik¬
ing to hear good news, consequently we are apt
to think our margin of profit is greater than it
is. If coal dealers would figure exactly what
it costs them to do business during the six sum¬
mer months compared with the six winter months,
they will be surprised to see how high the ex¬
penses run.
Many of us learned when filing the Corpora¬
tion Income Tax with the government that
there is a big difference between earnings and
income.
Many retail dealers have looked upon the sub-
The Delaware, Lackawanna & Western Coal
Company as of June 30 last, had profit and loss sur¬
plus to 90^2 per cent on its $6,590,700 capital stock.
After allowing fpr the payment July 15 of the
50 per cent extra cash dividend and the regular
quarterly 2J/2 per cent disbursement, the credit to
profit and loss account amounted to 38 per cent on
the stock outstanding.
Since January 1, 1910, the Lackawanna Coal
Company has earned an aggregate of 164 per cent
on its stock and has paid to shareholders a total
of 117^2 per cent in dividends.
The company issued no statement for the 1914
year, but has made pul)lic its balance sheet as of
June 30, last. Comparison of this statement with
that of December 31, 1913, shows that in the
eighteen months’ period ended June 30, earnings
amounted to 43 per cent on the stock. Compari¬
son is made below with profits in the calendar
years from 1910 to 1913 :
1!)15 ( 18 mos.) . iS% 11(11 . 2791!
1913 . 31<7o 1910 . 23%
1912 . 40% Grand total . 164%
In addition to the regular 10 per cent dividend
rate the company paid an extra of 10 per cent in
May, 1914, and of .50 per cent this month.
The profitaldeness of this coal company has
undoubtedly been an element in its attractiveness
as an object of government attention, and yet am¬
ple reason for its richness may be found without
seeking for collusive action with the railroad or
study of “monopolistic” contracts.
The company is of small capitalization, and has
an organization admitted in the trade to be of the
most efficient type. Although selling approxi-
fjuly 31
ject of Costs and Systems as a nuisance, in fact
a bore. Others thought it was worth while
for bookkeepers only and that it did not apply
to them as an executive or proprietor. There
is a big difference between bookkeeping and ac¬
counting. .A clerk who draws off the trial balance
is called a bookkeeper, but the man who gets
out of the books, information and figures to
analyze them is an accountant.
There seems to be no regular standard system
for keeping coal accounts and the many methods
now employed, vary from keeping books on
check stubs to a system requiring the services
of a regular cost clerk.
As a result the statements of costs taken from
the books of most retailers, are not complete
and of course not uniform and cannot be used
as a safe basis for estimating or recording the
cost of handling coal at retail.
Efficiency and economy are the watchwords of
present day business administration. Individual
endeavor toward obtaining large ))enefits in the
way of favorable legislation counts for but lit¬
tle, while an association with a large reputable
memliership witli facts and figures has a power¬
ful influence for the success of the desired
movement.
Coal merchant .\ cooperating with coal merchant
B to secure some mutual benefit or business pro¬
tection, gets twice the amount of protection or
benefits that he could through his individual
efforts. If he joins with four others, he re¬
ceives four times the amount — one-hundred oth¬
ers — one-hundred times the amount and so on
and we are aware of the fact that in “Lhiion
there is Strength”.
The Order of Kokoal can l)e made a power¬
ful organization and grow more powerful every
year.
The larger it grows, the greater benefits it
furnishes its members. It will reach its limits
in power for good — for economy — for efficiency
and for helpfulness only when every member
strives to acquire and maintain the new policies,
which I understand the Order or Association
hope to adopt at this convention.
One of the good features of the Order of
Kokoal are its banquets, at which are and should
be discussed matters of vital importance to the
coal industry.
The subject of uniform system of accounting
and costs, is 1 think, one of the most important
questions for the coal industry to solve, both
in the mining of coal and its distrilnition by
the retailers, and I hope that these few words
together with those of the other speakers will
bear fruit in the future by the realization “That
we must know that we know our costs” then,
the coal trade will have reached the place of
dignity and respect that it certainly deserves^ as
one of the largest, if not the greatest industry
existing in our nation to-day.
mately lo, OOP, ()<)() tons of coal per annum the com¬
pany has I)ut a handful of salesmen, only one, for
example for the whole of New York City. The
large volume of coal handled compared with the
size of the organization permits a very low cost
per unit of business done.
Such profits as the com|)any reports have been
made in a competitive business. The Lackawanna
Coal Company has bought its coal at a price fig¬
ured on the tidewater base, and sells its coal in
competition with other coal companies.
It has been learned from an authoritative source
that in the period from 1902 to this year the
Lackawanna produced 1 10,0()0,0()0 tons of coal
and its sales aggregated approximately .1144.5, llOO,-
000, and on this immense volume of business ag¬
gregate losses on collections amounted to hut
slightly over $.50,000. The percentage of had
debts on the business handled is understood to
have been actually but i:’-l,000ths of I per cent.
Such a record has few parallels.
Arrangements have already been announced to
make the organization of the company conform
with the suggestions of the Supreme Court deci¬
sion, and Mr. Loomis will step down from the
presidency, new offices will be taken removed
from the neighborhood of the railroad, and a new
contract with fixed prices instead of prices based
on tidewater quotations will be made.
The Loomis management completes its tenure
of office with coal on hand of $4,460,829, accounts
receivable of $3,449,323 and cash of $7,189,888 (as
of June :’>0), or $15,100,042 in the aggregate, com¬
pared with total obligations of $3,343,728. — ll'all
Street Journal.
Record of the Lackawanna Coal Company.
No. 5]
THE BLACK DIAMOND
85
The Market for Franklin County Prepared Coal.*
By John E. Beebe.
In the declaration of purpose of the Franklin
County Coal Dealers’ Association, the following
is given as one of the objects of the organization;
■‘To Open New Markets for Franklin County Pre¬
pared Coal.”
I sincerely appreciate the compliment paid me
and my company by this association, in asking an
expression of my thoughts on this important sub¬
ject. No more vital phase of this organization
work can be imagined than the careful study of
where the coal it produces is to be marketed, for
in the intelligent solution of that problem lies the
success or failure of all its efforts.
Franklin county, Illinois, contains within its
420 square miles one of the most important coal
deposits in the United States. It is located 308
miles south and west of Chicago, on a line drawn
through the center of the state, its surface pre¬
senting the usual downstate characteristics of rol¬
ling prairie fairly well wooded and drained by a
few sluggish streams. Its present annual pro¬
duction is about 7,000,000 tons. Estimating the
coal within its boundaries by the customary rule
of 1,000 tons to the foot per acre and taking an
average of 8 feet for the seam, with eighty per
cent as the recovery figure, a fair estimate of
the coal available in the main seam now being
worked (No. 6) will approximate three billion
(3,000,000,000) tons, and removed at the present
rate, a 300-year supply. With such a reserve body
of coal upon which to base all calculations for fu¬
ture marketing, only the most comprehensive and
broad-minded planning should be considered.
Nothing short of methods of a kind that will
make for the complete covering, both in selling
and publicity policies of the entire possible selling
zone, will fit the case.
Now, then, what of the coal itself? Just where
in the list of other fuels with which it must
compete does it stand as to quality, price and gen¬
eral availability? An honest answer to this ques¬
tion is of fundamental importance. '
h'ranklin County Prepared Coal has been on the
market for about ten years, and has been tried
extensively for domestic purposes, for steam use
and clay product manufacturing over a very wide
range of country and conditions, and in competi¬
tion with every one of the best coals produced in
the United States in all such uses gives excep¬
tionally satisfactory results.
It has also been repeatedly tested against its
neighboring county coals and has won a place for
itself against not only them, but a formidable
array of other standard coals, that were firmly
intrenched in the trade, and that will always be
sharp rivals for business in the zone where Frank¬
lin County Prepared Coal can be sold.
Franklin County Prepared Coal can honestly
be said to have elbowed itself into a position that
permits the statement that it is today looked upon
in its selling zone, as the very best type of an all
purpose coal produced in the middle west.
Put in another way : Franklin County Prepared
Coal is of such inherent good quality, and is so
well sized and cleaned, that it now stands in the
very front rank of commercial coals.
Its proper marketing, both present and future,
should, therefore, carry it into every stove, boiler,
heater, or clay product kiln where prohibitory
freight and mining rates do not prevent its in¬
troduction.
Now, a few words as to the factors that have
made possible this rapid climb to the top of what
is a comparatively new coal — for ten years is but
a brief span in the history of coal consumption
in this country.
First, of course, is the great seam of coal itself
that is of a thickness that makes its extraction
simple — it is of a quality that readily commends
itself to the consumer, and is geographically so
favorably located that it can readily reach a vast
army of consumers.
Second ; Because of the kindly fate that
changed rather down-hearted Franklin County of
a dozen years ago into what is today one of the
busiest communities in Illinois, and also pro¬
vided just the right sort of men to work the
miracle.
The real merchandising instinct was big in the
minds of the men who first opened the Franklin
county mines, and those that have followed are
of the same type.
Third: Because from the very first the pro¬
ducers of Franklin County Prepared Coal knew
that the swiftest and most powerful force that
*.\ paper read before a meeting of the Franklin County
Coal Operators’ Association.
could be put into the quick creation of a market
was publicity; in simpler English, advertising, and
they used, and are today using it to a greater ex¬
tent perhaps than any field in the country.
Fourth ; Again the use of gray matter was
demonstrated by these operators when, not con¬
tent with the knowledge that the raw coal that
they were mining in Franklin county was of first
rate quality, they proceeded by every means pos¬
sible (and a tidy sum it cost) to turn that raw
product into an infinitely better one.
Up and down the country and farther afield, to
Europe, went these searchers for better methods
than the ones previously used for preparing this
coal, so that as a result Franklin County Prepared
Coal is today recognized as the best prepared
bituminous coal in the country ; we could almost
say with safety, in the world.
The most perfectly prepared coal in the world is
Pennsylvania anthracite, and the men who had
the vision and nerve to put forth the effort to
bring Franklin County Prepared Coal into a place
of equal importance, as far as preparation is con¬
cerned, gave close attention to the methods used
by the anthracite producers. And in studying an¬
thracite preparation methods, they absorbed a big
market expansion thought at the same time.
Well might they give much time to the study of
the history of anthracite coal preparation, for in
the great development of improved anthracite
preparation methods lay a most vital and inspir¬
ing lesson, for there was coupled with its perfect
preparation an equally important and correspond¬
ing enlargement and extension of the market for
anthracite coal that was most attractive and in¬
spiring.
What was it that put the whole anthracite in¬
dustry on its feet? Perfect preparation!
What was it that lifted the anthracite operators
out of the business of producing a limited ton¬
nage of a coarse coal made up of lumps of every
size and quality and which threw its fine coal into
the refuse pile, and has replaced it with a mighty
manufacturing industry that makes a perfectly
sized and cleansed fuel for every human need, and
saves all the fine sizes? Perfect preparation!
What was it that changed and improved every
form of heating apparatus, cleansed up cities,
made for better public health and brought great
comfort to tens of thousands of homes all over
America? Again, perfect preparation.
What was it that brought harmony out of
business chaos, organized the producing and sell¬
ing companies that controlled the interests of the
anthracite fields, and made possible a distribution
method that brought to the American consumer’s
home a most admirable fuel? Preparation, of
course.
Hence the operators of Franklin County, with
this blazing example of what has been done, are
duplicating in a large measure this business tri¬
umph. There is nothing to prevent a coal that
responds to preparation as does Franklin county
coal, from driving itself like a wedge through
competing fields into every home and community
in the middle west, unless there be failure by the
operators in the county to prepare the coal as it
should be prepared.
A consideration of the future markets for
h'ranklin county coal must also recognize the
growing possibility of the steady replacement of
anthracite which has become a somewhat costly
luxury in most localities. Acquaintance and fam¬
iliarity with the sterlTng qualities of Franklin
county coal, its admirable preparation and adapt¬
able sizing should bling it rapidly into homes
everywhere as an exceptionally satisfactory sub¬
stitute.
Think of what an opportunity lies right before
the producers of Franklin County Prepared Coal
in having, all over the land, an enormous number
of well-to-do coal users who have been educated
to the use of a properly sized, bright looking,
clean coal, and who, while they will give np the
use of anthracite perhaps slowly, can be compelled
or, better, induced to replace it with h'ranklin
County Prepared Coal that resembles anthracite so
closely.
The saving of several dollars a ton will be a
mighty factor in bringing about this change, and
the householder is already discovering, in many
places, that the substitute can be made.
Many instances are recited to us by dealers, and
our own experience at many conventions indi¬
cates the interest the coal buying public take in
the possibility of such change. Prompt advan¬
tage should be taken of this situation and the
growing sentiment of favor capitalized. Every
effort should be made to let the public see and
handle samples of Franklin County Prepared
Coal, and whenever possible actual home trials
should be effected.
No rnore important work lies before this or¬
ganization than the extension and development
of this kind of publicity among coal consumers.
We know that the dealers are ready and eager to
carry forward this propaganda, and in this direc¬
tion lies an important opportunity for the oper¬
ators, who are given the large vision that will
stand for the time, cost and labor that must be
the price, to educate the householders to the steady
use of Franklin County Prepared Coal.
Ihe work that has already been done in ad¬
vertising the coal sold by this organization, and
in bringing it to the knowledge of the dealer has
been of the most substantial character, and has
made Franklin County Prepared Coal familiar to
the bulk of the dealer tracle, but to increase the
demand steadily from the six and a half or seven
million tons per annum now produced, to the
tonnage easily possible with the present equipment,
working 300 days in the year, a strong and united
effort must be employed.
The leverage must continue to be ever and al¬
ways a preparation by every operator in Franklin
county of coal that will show, in every ton sold
to dealer or consumer, such careful sizing, such
freedom from anything hut coal, so complete a
removal of fine stuff, that they will learn to know
it like the face of a friend.
The cost to so prepare the product of the
County of h'ranklin will not be small, but the
reputation, good-will and patronage that will fol¬
low will bury the initial cost so deep that it will
never be thought of.
No lever can do its work unless it has a proper
fulcrum. That resting point must be solid, steady
and substantial, and it consists of enough honest,
simple, easily understood advertising to penetrate
and keep alive, year in and year out, in the minds
of dealers and consumers alike, a knowledge of
all the facts about Franklin County Prepared
Coal. Competition, like death, taxes and interest,
never goes to sleep at the switch.
This method is “The Only Way” by which ton¬
nage can be increased tO a point that will bring
about a lowering of the cost of production, that
will be evidence in dividends without increase of
cost to the public and will be along lines which
will educate the public into becoming steady,
regular and loyal buyers.
It is not to be understood by anything I have
said that the persistent education of the dealer
should be neglected; very far from it. Through
him lies the obvious way of approach to the busi¬
ness in his town, and to his credit it can be said
that he is prompt in the majority of cases to help
on the work. The fact remains, however, that
steady pressure can be brought upon the house¬
holder, even if the dealer does not at first co¬
operate with us. This matter is so important
that it can be made a constant subject for your
thoughtful consideration.
Assuming that it is the intention and determin¬
ation of this association to have the prepared coal
of Franklin county delivered to the consumer in
a condition of preparation that will he unrivalled,
yet, inasmuch as “eternal vigilance is the price of
profit,” the fact should never be lost sight of that
Franklin County Prepared Coal, to reach its mar¬
kets, must pass through vigorously competitive
coal producing fields, that are also alive to the
benefits of proper preparation.
By a combination of fortunate circumstances,
one of the most important factors that has to do
with the present and future markets for Franklin
County Prepared Coal is ready to hand — the ma¬
chinery of distribution — otherwise railroads. The
forces that for many years were developing the
empire of the middle west, have laid the railroads,
built the towns and established the manufacturing
enterprises that are the natural market for h'rank¬
lin County Prepared Coal, so that the opening of
the field found the market ready and ripe for its
product, with the pioneer work and introductory
effort in this particular reduced to a minimum.
The geograi)hical location of the county is all
that could be desired, and the great western ra¬
diating lines of railroad have been quick to make
the necessary individual mine connections.
Today, owing to the intelligent realization on
the part of railroad managers of the substantial
permanence of this field, and the wide range of
use to which its coal can be i)ut, the i)resent and
future needs of the district as to transportation
are well provided for.
It is hoi)ed a general tendency may at all times
prevail with the railroads to provide a favorable
adjustment of rail rates that will be of advantage
86
THE BLACK DIAMOND
[July 31
in extemling the future market for Franklin
County Prepared Coal to far distant points. As a
whole, the outlets for the coal are so well bal¬
anced within the state tliat all operations therein
are satisfactorily served on what seems a fair
competitive basis.
Hut there is a point in the consideration of the
I)resent and future markets for Franklin County
Prepared Coal that is worth your most careful
consideration.
.May 1 ask for it your earnest attention?
F.arlier in this paper 1 made a broad statement,
that might seem to cover the subject, when I
said that the present, and future market for
l•'ranklin County Prepared Coal was in every
stove, furnace, boiler or clay product plant where
prohibitive freight and mining rates do not pre¬
vent its introduction.
'Phis was fixing the limit of the market ex¬
tension with an arbitrary rate, which is perhaps
only partly true. May it not be possible that the
lield for the use of this coal will pass that usually
agreed barrier?
Pardon me if I must again emphasize the much
dwelt on matter of proper preparation at this
point, for it is the pivot, it seems to me, upon
which our whole argument revolves.
A subtle thing is reputation. It has first to be
built up, for an article like Franklin County Pre-
|)ared Coal, by skillful management and properly
ecpiipped plants. Only with these fundamentals
installed will reputation have a proper soil on
which to grow. This soil must be fertilized by
strong publicity and first-class salesmanship ; but.
after all, it is the good-will of the coal user that
causes a reputation to grow like Jack’s bean stalk.
If over the back fences and uj) the back stairs,
at thimble clubs and dog fights, men and women
are telling each other that FTanklin County Pre¬
pared Coal is the best they ever had, the tipples
of h'ranklin County will, in a few years, be busy
.'ioo days every year.
With an established reputation, built on the
firm foundation of perfect preparation, the oper¬
ators will make a better profit, and increased vol¬
ume of business will reduce cost of the i)ublic,
steadier and better wages will flow into the homes
of the miners, and the market for F'ranklin
county coal must steadily broaden.
Admitting that there is a zone line that is
thought to be a stone wall to the market exten¬
sion of F'ranklin County Prepared Coal, I am
compelled to confess that I have not as yet dis¬
covered it, for as soon as a dead line has been
seemingly reached, some enterprising salesman or
progressive dealer who is curious about the claims
made for the coal, proceeds to sneak a car over
that boundary.
Human nature is the same, and under ordinary
conditions is always looking for a little more com¬
fort, a little more cleanliness, a little more con¬
venience, and is willing to pay for it, and when
it is found by trial that there is a coal that com¬
bines these qualities to the extent that F'ranklin
County Prepared Coal does, there begins to per¬
meate through every ordinary community, when
it is once introduced, a demand for it.
There must be a place where a subject as in¬
teresting as the one we have been considering
comes to some sort of a focus, and it must be
evident that the thought dominating this paper
has been that a coal like that of F'ranklin county,
if properly prepared, so that those who use it
will continue to do so, must become an established,
profitable, standard commodity all through the
middle west.
“Profitable,” yes, but to wbom?
To the consumer? Yes, always, if he gets such
a coal as he should get.
The dealer cannot help making a good i)rofit
on an article such as we have been talking about,
which satisfies his customers and increases his
business.
Hut how about the operators? .\re they to go
unrewarded? Not for a moment, if their attitude
toward the dealers who distribute the output of
F'ranklin county is based on clean, honorable, rea¬
sonable lines, and the dealers give in return genu¬
ine co-operation.
This preparation that we have talked so much
about carries with it a steady, easily ascertain¬
able, demonstrable cost, as does the entire invest¬
ment of the operator in plant, land, business risk
and selling organization. Upon this investment
a fair and reasonable profit is due to the oper¬
ator, and without it his business is a failure.
To get this profit he must at all times receive a
proper price for the coal shipped, and such a
price must be one that the dealer pays with satis¬
faction, because he has received a i)roper value for
his money and an article on which he can reap a
substantial profit.
If the oi)erator is to get this fair price, it has
been for a long time evident that friendly co-oper¬
ation must always exist between him and the
dealer.
The operator must have removed from his daily
consciousness the knowledge that during certain
seasons of the year the dealer will attempt to,
and under past prevailing conditions succeed, in
purchasing coal at or below cost of production,
and that he (the coal operator) must, in order to
make good the loss from such low price sales
during a part of the year, charge during the re¬
mainder of the year a correspondingly high and
unwarranted price in order that a reasonable profit
may be shown on the year’s operation.
Whatever the necessity of the coal companies
may be as to return of their producing cost, it is
certainly unwise that such a wide variation of
price should prevail between seasons. A substan¬
tial percentage of coal users know little or noth¬
ing of the cost of coal production and sale, nor do
they understand how any occasion could arise
that would promi)t the sale of such a standard
commodity as coal at less than cost. Hence their
The United Mine Workers of .America are
now actively engaged in tryin.g to stir up en¬
thusiasm in their organization in the anthracite
districts, and to enroll, if possible, every man
connected with the anthracite industry in a work¬
man’s capacity by .April 1, next, when the present
four-year agreement with the operators expires.
About two weeks ago John P. \Vhite, presi¬
dent of the United Mine Workers of .America,
came to the anthracite regions, and since then
there have been frequent meetings at certain
points, and speeches have been made galore by
White and numerous leaders of the union.
A great many claims are being made as to
what the miners will demand in the way of a
new agreement. Some of the most important
demands are an eight-hour day; a complete rec¬
ognition of the union ; the check-off and a general
increase in wages running from fifteen to twenty-
live per cent. They also demand the elimina¬
tion of the conciliation board in favor of some
more direct method of settling disputes.
■An important meeting of the anthracite dis¬
trict mine workers will be held at Wilkes-Ftarre,
on September 6. In the meantime the mine work¬
ers of the various parts of the anthracite fields
will conduct a campaign for membership, holding
two meetings a day until September (i, when the
joint convention will be held in Wilkes-Barre to
formulate the demands that will be presented
to the operators.
The following announcement was made by the
union last week:
“.April 1, 1910, the present agreement between
the anthracite coal operators and the mine work¬
ers throughout the anthracite belt will e.xpire.
Unless satisfactory arrangements have been con¬
cluded by that time the coal mines will prac¬
tically be at a standstill. Most every one is
familiar with the long struggle of 1900, when
over a hundred and fifty thousand coal mines
struggled for a year to secure an increase in
wages, shorter work day and generally improved
working conditions as well as recognition of the
union.
“The strike was linally terminated by the ap¬
pointment of a commission by F’resident Roose¬
velt, which made the award of 1902, granting the
miners a small increase, but refusing to give them
the leverage of union recognition. Since 1902
the miners have struggled to perfect their or¬
ganization, but every contract year has found
them weak in numbers, with the result that only
one increase in wages has been received by them
since 1902. This increase was secured in 1912,
when out of a total of 176,000 men and boys em-
|)loyed in the mines less than 20,000 were paid up
members of the union.
“The .20,000 membership of 1912 has grown
during the i)ast three years to 100,000, the highest
ever known in the anthracite field. Union offi¬
cials estimate that the number of men employed
in and about the mines and not now affiliated
with the union is .'j0,()00, who are eligible for
membership. On this figure the promoters of the
campaign based their hope for a hundred per cent
organization and have adopted for their campaign
slogan the words, ‘After F'ifty Thousand Con¬
verts.’ In every mining town the miners are
showing an intense interest in the campaign.
.Mines are always closed on meeting days and
the membership committees of local unions are
making a house to house canvass of the non¬
assumption will always be that the lowest price
of the year is never less than cost and that the
whole spread to the extreme prices prevailing in
periods of sharp demand is all profit, and both
dealers and other users are, therefore, apt quite
naturally to assume an attitude of antagonism
most uncomfortable when asked to pay a price
that seems excessive.
The dealer must possess (if this vital matter is
to be ruled by reason) a mind that appreciates
the position of the operator, and that will prompt
him at all times of the year to pay a price for his
supply that carries a fair profit to the operator
that ships to him.
To feel this way the dealer must be honestly
convinced that at no time, and under no stress of
circumstances will the operator endeavor to secure
a price from him that is excessive.
In no other way can this much to be wished
for state of affairs be brought about so satis¬
factorily as through an organization like the
F'ranklin County Coal Operators’ .Association, and
it can work for no one thing of greater im¬
portance.
affiliated workers in order to get them out in
full force to attend the meetings and hear their
chieftains plead unity for the common good of
all.”
The Miners and Ohio Trade.
(Concluded from page 81.)
case has been prejudiced in favor of the miners
by the mere fact of enacting the Green law.
Regardless of the logical and forceful state¬
ment of the consumer, the Green law has pre¬
judiced the case in favor of the Ohio miners.
The second big fact is that competing states
are not governed by the Green law or by any
other Ohio statute. That is. West A^irginia has
not surrendered wholly to the Ohio miners.
West Virginia is still producing coal under
the old system and at the old rates. The
miners are not getting all of the selling price
of coal in West Virginia.
This means one thing: Ohio capital is per¬
fectly hopeless because it is tied up in coal
lands which cannot be moved. But the rail¬
road and the consumers are not similarly
hampered. Thus, the consumers are not buy¬
ing Ohio coal, but are taking West Virginia
coal. The railroads are not carrying Ohio coal
but are carrying the West Virginia product.
Because of these decisions, Ohio capital is
forced to abandon its mines and its investment
as in the Hocking Valley case. Incidentally,
the headstrong and blundering miner is today
on the bread line.
Reaping the Whirlwind.
The resultant situation is one that gives
pause. The state of Ohio is being appealed to
to relieve the distress of these hungry miners.
It is even suggested now, by a subservient po¬
litical administration, that the taxes collected
from other and more sensible people of Ohio
should be set aside tcybuild roads through the
mining districts so that the hungry miners may
find employment.
'Fhat may be the political way to solve the
problem, but the business way would be to
take into consideration the rights of the other
three members of the quadrangle — to consider
the rights of capital, of the consumer and th?
carrier — and then to get down to business.
The f)hio mining rates and labor conditions
must be put on a competitive basis with those
of the surrounding field. Then, and only then,
Ohio, with its superior grade of coal, can find
a market for its product and can give profit¬
able employment to its miners.
The article closes where it began, namely:
No question is ever settled permanently until,
under modern conditions, equal consideration
is given to the co-ordinate rights of all four
parties to the business quadrangle.
Presently we will discuss this same question
from the point of view of the railways.
On July 1st. American shipyards had under
construction or under contract, sixty-five steel
merchant vessels of 298.426 gross tons. High¬
est previous record was on July 1st, 1907, when
124 steel merchant vessels of 40.2,473 gross tons
were under construction or contract. Vessels
now building for the navy, excluding sub¬
marines, number twenty-seven, of 287^382 tons
displacement.
Miners Union Is Canvassing Anthracite Field.
No. S]
THE BLACK DIAMOND
87
New Hocking Rate Goes Into Effect.
CoLU.MBUS, Ohio, July 28. — The new commer¬
cial rates on coal from the Nelsonville assem-
blying yards to Toledo and intermediate
points, went into effect today on the Hocking
X'alley Railway. They make reductions of from
five to twenty cents per ton, according to des¬
tination.
The time-honored tariff of sixty-five cents
on Hocking coal into Colum.bus is replaced
by one of sixty cents. Delaware, Marion, Fos-
toria, as miany smaller points, are beneficiaries
in varying degree. The Toledo rate of $1 is
replaced by eighty-five cents.
The initiative in these reductions was taken
by the New York Coal Company of Columbus
five years or more ago who attacked the rates
on the grounds that they were excessive.
I’etition was filed with the state utilities com¬
mission. This body about a year later, after
several hearing sessions, in which experts and
able attorneys appeared on behalf of both the
coal company and the railroads, authorized
the reductions herein cited.
The Hocking Valley Company used its right
of taking the matter into the courts, carrying
it up to the chief tribunal of the state. Its
grounds were that the commission had no au¬
thority under the constitution to fix rates. A
few weeks ago, the Supreme Court handed
down a decision sustaining the conffnission.
Any further fight made by the railroad would
have had to be in the federal courts. Its formal
issuing of a new tariff in accordance with the
commission’s findings is a virtual declaration
of acceptance. Technically this tariff is sup¬
posed to have been in force since the date of
the Supreme Court’s decision, but time has
been allowed by shippers for the issuing of
the tariff.
Ohio Coal Rates Situation.
Columbus, Ohio, July 28.— (Special Corre¬
spondence.) — Whether the coal rate issue in
Ohio, now recognized as having reached a real
crisis, will have a drawn-out preliminary
sparring stage between shippers and the rail¬
roads, such as usually marks a scale settle¬
ment, remains to be seen. Prominent ship¬
pers state that no such delay will occur. There
has been quick action sc far in frequency of
conferences. The first was held at Columbus
on July 19th and 20th, followed by a second
at Cleveland on the 27th. The third is billed
for Columbus on the 30th.
Without discussing the merits of the ques¬
tion, the issue miay be stated in a few words.
Ohio coal producers are asking that the dif¬
ferential between Ohio and West \'irginia be
increased from twenty-five to fifty cents per
ton. They believe that they are able to force
it. The railroads concede that there should
be some increase in the differential, possibly
five or ten cents per ton, but they want it to
come through the authority of the Interstate
Commerce Commission. Further, they have
a large appreciation of the advantage held by
the coal mien in the present controversy, and
are much more anxious for a compromise, and
less anxious for a fight, than at, perhaps, any
time in the history of their dealings with coal
producers on rate matters.
Ohio coal men have a new-found weapon.
Last winter John H. Winder, general manager
of the Sunday Creek Company, and other
coal men, supported by the Ohio United Mine
Workers, made strenuous representation to the
state legislature that the (3hio coal industry
was threatened with extinction by reason
largely of alleged discrimination by the rail¬
roads in favor of West Virginia coal in the
matter of freight rates, and petitioned inves¬
tigation and readjustment.
This did not excite much interest in coal
circles generally, for the reason that it was
felt nothing would come of it. And nothing
did come of it. When the legislature ad¬
journed a month or more ago, coal regulation
by the state was as dead an issue as though it
had never been brought before the law-mak¬
ers. It was at this point that something hap¬
pened. A decision was handed down by the
Supreme Court of Ohio recognizing the au¬
thority of the state utilities commission to
regulate freight rates. The commission had
already tried its hand in the matter. The par¬
ticular case involved is given in detail in the
foregoing announcement of the going into
effect, today, of a reduced tariff between Nel¬
sonville and Toledo. The case had been pend¬
ing five years or more, and doubtless many
coal men had forgotten its existence.
But the whole rate situation was thus placed
on a different basis. The fact that the coiw-
mission had been favorable to the coal men
in one instance, after investigation, presup¬
posed that it recognized the need and justice
of rate regulation in Ohio, and was ready to
give prompt consideration to other petitions
that might be filed. Granting, for argument’s
sake, that the Ohio coal men are right in their
contentions that the life of the coal industry
in the state depends upon higher differentials,
they have a very strong position. And no
better time could have been planned for bring¬
ing the question to a head, mines now, from
whatever cause, being largely idle and miners
calling for public relief in the niatter of food.
“Give us our Ohio steam trade,” is the sen¬
timent of Ohio producers, as announced by one
of their leaders. They cite Indiana as a
model. There intrastate rates are so favorable
to the home operator as to keep both West
Virginia and Ohio out of the steam market,
though Indiana steam coal, it is claimed, is
inferior.
Nothing less than a fifty cent differential,
operators state, will insure Ohio an equal
show in her own steam market. It is cited
that in normal times, not taking into account
present low prices. West Virginia has a price
in Toledo of seventy-five cents f. o. b. mine.
Ohio, with its larger mining rate and other
handicaps, must have .$1.10 or $1.15 f. o. b. per
ton before a profit stage is reached on mine
run, taking the Hocking Valley as, basing point.
One point of large importance is that West
Virginia steam coal has about 1,400 heat units,
as against Ohio’s 1,200.
The opinion is expressed am^ong operators
that unless the railroads agree at the forth¬
coming conference to the concession asked for
that the coal men will at once go before the
utilities commjssion and ask to have the whole
coal rate question, with its bearing upon the
general prosperity of the state, sifted from
top to bottom. A plea put up by the railroads
is that reduction of Ohio rates would be fol¬
lowed by retailiatory action on the part of West
Virginia railroads, and in the end there would
be no gain to Ohio. This is their ground for
wanting to pass the problem up to the Inter¬
state Commerce Commlission, whose rulings,
whatever they were, would be obligatory on
all the states affected.
Pennsylvania Fuel Tonnage.
The total fuel tonnage hauled by the Pennsyl¬
vania Railroad lines east of Pittsburgh in the six
months of this year, amounting to 30,684,163, was
less than in the corresponding period of any of
the three preceding years. It compares with
32,740,336 tons in the first half of 1914, 27,027,558
in 1913 and 34,312,495 in 1912. The bituminous
coal shipments in the first half of this year,
amounting to 20,261,777, compared with 21,973,572
tons in 1914; 24,282,419 in 1913, and 22,619,781 in
1912. Anthracite tonnage this year was 5,423,467,
as against 5,560,680 in 1914; 5,418,231 in 1913, and
5,318,121 in 1912. Coke shipments of 4,998,919
PH]L,Jir)ELi’Hi.\, July 28: The presence of John
P. White, jiresident of the Lhiited Mine Workers
of America in the anthracite fields has caused all
manner of speculation and rumors as to strike
possibilities.
So much newspaper talk has been created that
White has seen fit to issue the following state¬
ment as to his object in “lining up” the miners.
“Articles appearing in certain newspapers dur¬
ing the last few days, for the most part pub¬
lished a great distance from the anthracite in¬
dustry, containing the information that the an¬
thracite mine workers are making huge prepara¬
tions for a big strike at the expiration of the
present agreement March 21, 1916, are absolutely
unfounded.
“The campaign now being conducted in the an¬
thracite region is for the sole purpose of uniting
the men of the mines as members of the United
Mine W'orkers of America. When the anthracite
miners have perfected their organization, 1 am of
this year compare with 5,196,084 in 1914; 7,326,908
in 1913, and 6,374,593 in 1912.
In June this year the bituminous tonnage, 3,664,-
703, was the largest monthly amount since De¬
cember of last year. It was less than in June,
1914 or 1913, but greater than 1912. June an¬
thracite shiinnents, 843,053 tons, were smaller than
in that month of 1914 and 1912, but larger than
in 1913. Coke tonnage in June, 990,476 was the
largest since March, 1914. It also was greater
than in June last vear, but less than in 1913 or
1912.
The fuel tonnage of the Pennsylvania Railroad
eastern lines
by mont
hs for four years
follows
( bituminous)
1915
1914
1913
1912
January .
3,.171.34.t
4,117,511
4,210,196
3,581,305
February .
3,031,009
3,556,665
3,857,304
4,086,917
IVl a rc h .
4,740,313
4,050,247
4,501,053
April .
3.099,928
3,796,432
3,391,985
May .
.3,393,328
3,543,218
4,178,271
3.495,010
Tune .
3,664,703
3.897.544
4,189,969
3,502,845
■July .
3,966,357
4,551,528
3,655,387
August .
4,299,810
4,562,339
4,032,727
Sei)tem])er . . . .
4,291,425
4,378,037
3,906,164
October .
4,233,393
4,887,840
4,113,550
November . . . .
3,607,38.5
4,509,375
3,934,870
December . . . .
3,755,675
4,354,729
4,271,702
Total . . . .
47,769,227
5 1 ,526,267
46,434,187
—IVal
Street Journal.
Lackawanna Coal Company.
New York, July 28. — (.‘Special Correspond¬
ence.) — -At a directors meeting of the Dela¬
ware, Lackawanna & Western Coal Company
held today, J. F. Bermingham, who has been
general auditor of the company since its or¬
ganization, was elected president in place of
E. E. Loomis who resigned some weeks ago
in order to carry out the decree of the supreme
court. The general offices of the company will
be removed from! No. 90 West street to the
new Equitable building some time next month.
England’s Coal Shortage.
New York, July 29. — (Special Correspond¬
ence.) — As emphasizing England’s coal short¬
age, a mass mieeting of 2,000 miners, delegates
was held in London today when addresses
were made by Lloyd George, minister of muni¬
tions, President Runciman of the boaril of
trade, and others, to speed up production. The
home secretary declared England’s shortage
amounted to three million tons monthly.
New York Coal Bids.
Bids were opened on Monday, July 19, by the
fire department for furnishing and delivering an¬
thracite coal for fireboats. There were three de¬
livery points, with different tonnages. No. 1, 1,150
gross tons; No. 2, 600 gross tons; No. 3, 600 gross
tons. Bidders and their prices were as follows :
No. 1. No. 2. No. 3.
Commercial Coal Co., Brooklyn . $G.18
Tohn F. Schmadeke, Tnc., I>rooklyn. $5.95 $5.95 ....
\Vm. Farrell & Son, New York City 5.93 5.93 ....
Bacon Coal Co., Brooklyn . 5.SC ....
On Wednesday, July 21, the department of
docks and ferries of New York City opened bids
for furnishing approximately 3,000 gross tons of
egg coal. Bidders were as follows :
Streat Coal Company . $5.94
W. P. W. Hat! . .5.57
Pattison & Bowns . 5.37
(iavin Rowe . 5.4()
the belief that the union will be sufficiently strong
and efficient to command the respect and recog¬
nition it deserves.
“1 have every reason to feel assured that the
operators, like the miners, want to be fair, and
consequently I am at a loss to understand why
the attempt in some quarters is being made to
misrepresent the real purpose of our present mem¬
bership camiiaign.
“The international officials nor district officials
have formulated any plan that contemplate a
strike at the expiration of the agreement. We
are, on the other hand, hopeful that we will enjoy
the opportunity to meet the operators in confer¬
ence and reach a fair agreement, emliracing needed
reforms and betterments that we feel quite con¬
fident the general condition of the industry will
permit. The public should not become alarmed
at the stories of a strike nature, for the mission
of the L’nited Mine Workers is one of peace, and
I predict that such will be the outcome of our
negotiations when we again meet the operators.”
No Strike of Anthracite Miners, But —
88
THE BLACK DIAMOND
[July 31
Hurley Outlines Trade Commission Plan.
Edward N. Hurley, vice-chairman of the
Federal Trade Commission has outlined the
plan according to which that body will work.
The authorized statement follows:
“Among the several methods by which the
federal trade commission can be of construc¬
tive help to American business, there are two
of particular importance. One of these is to
aid the business men of the country in obtain¬
ing the additional credits to which their busi¬
ness operations may entitle them. The second
is to aid in establishing a standard system of
bookkeeping and cost accounting. The two
are interdependent.
“The small manufacturer, the country store¬
keeper and the retail merchant as a rule do not
get at the banks credit that they ought to re¬
ceive, owing to the fact that they are unable
to present balance sheets in accordance with
good business practice. These men are just
as good business men, in many respects, as
those of larger operations.
“Frequently a business man with a credit
of a few hundred dollars at his bank, based
wholly on personal grounds, could, if he could
produce a reliable balance sheet, readily ob¬
tain several thousand dollars which would
enable him to expand his business along sound
lines. Failing to obtain it, his business is lim¬
ited and confined.
“Ability to borrow at the bank has a far-
reaching efifect on all credit, because to the
bank, primarily, are directed inquiries for a
rating of a manufacturer or merchant seeking
credit for goods. An unfavorable or noncom¬
mittal report from the bank results in a cur¬
tailment of opportunity. It also checks ex¬
pansion.
“But it is true that a great many of these
forms could be adapted for use in lines other
than those for which they are originally ar¬
ranged, as certain fundamental principles un¬
derlie the general structure of accountancy
and must be recognized by each group.
“It is a fact well understood among busi¬
ness men that the general demoralization in
a large number of industries has been caused
by firms who cut prices, not knowing what
their goods actually cost to manufacture; and
the cost of selling, which is equally important,
is almost wholly lost sight of.
“How can the federal trade commission help
cure these conditions?
“By no compulsory methods. The commis¬
sion has no power and no desire to use such
methods. But the commission does hope to
reach the desired end by putting at the service
of the manufacturers and merchants who have
not had the experience or advantages that
larger firms possess the accountants, book¬
keepers and experts in cost of production that
are employed by the commission, and in that
way to help strengthen American industries
where they are weak. These services will be
rendered only on the request of the individual
merchant or manufacturer who desires them.
“\Vhen there is completed within the com¬
mission the organization for aiding business
any manufacturer or merchant, on request,
may receive (a) an approved form for presen¬
tation to his bank when seeking credit; (b) a
form designed to show accurately and con¬
cisely his assets and liabilities, stock on
hand, etc.; (c) a form of double entry book¬
keeping adapted to his class of business, as
well as (d) a form and method of arriving at
costs, also adapted to his line of business.
All of these sample forms will be simple in
character and can be supplied by the local
printer.
“It is hoped that the different banks
throughout the country will carry supplies of
these forms for the benefit of their custom-
ff
Law of a Case Involving a Dishonest Salesman.
An employer’s legal responsibility for the things
his salesmen says and does is brought forward
by a letter just received through a New York
paper. Readers will bear in mind that the law is
the same both as to the salesman of a manufac¬
turer or a jobber, traveling on the road, and the
store salesman or clerk of a retail dealer :
“We have been put in an uncomfortable situa¬
tion by a dishonest salesman, and should much
like your advice on the legal complications which
have ensued. This salesman has been in our
employ for several years and always went straight
until a few months ago, when he got in with some
bad people, and since then he has gone from bad
to worse. He has mixed us up with our custom¬
ers in several ways. To begin with, he took
orders for certain of our merchandise at a cut
price. The price is far below our cost, and of
course he had no authority to name any such
price. In selling the goods at these prices he
made out an order at the regular price, which he
sent to us, and left a duplicate with the cus¬
tomers containing the cut price.
“He also has collected a considerable sum of
money from various customers and has failed to
turn it in. We fear thi? when ascertained will
run into several thousand dollars.
“The worst thing he has done, however, is to
guarantee a certain preparation which we sell as
fit for a certain purpose, which it is not fit for at
all. It is similar to other preparations which are
used for that purpose, but we have never sold it
for that, and all our salesmen have been instruct¬
ed to tell the trade openly that our brand was not
sold for any such purpose. By untruthfully rep¬
resenting that it would do the work in question,
this salesman has gotten quite a number of or¬
ders, and from buyers who have recommended it
to their own trade for that, and when it did not
make .good the customers came back on their
dealer, and the dealer now comes back on us.
We are in a bad mix-up on this account.
“What is our legal status under all these com¬
plications ?’’
It has always been a mystery to me that there
were not more cases of this sort. An employer
is to a very large degree at the mercy of his sales¬
men or his clerks. Good salesmen are scarce;
therefore when a man gets a chance to hire what
looks like one, he often snaps him up without
looking deeply enough into his past.
Three questions presented here are common to
any employer :
1. When a salesman, without authority from
his employer, or even perhaps against the posi¬
tive instructions of his employer, takes an order
for goods at a cut price, is the employer bound to
fill it, or can he collect the regular price of the
goods from the buyer?
2. When a salesman collects money for his
employer, without authority, or again, even against
his employer’s instructions, can the employer
claim that it was paid to the wroa? person and
must be paid again, or is he bound to regard it
as equivalent to payment to himself?
3. When a salesman makes false representa¬
tions or warranties about goods he sells for an
employer, against the wish and order of his em¬
ployer, and in consequence the customer gets into
trouble with his own customers and has to take
goods back and refund money, can the employer
also be compelled to take the goods back and
refund money, or can he claim that he is not re¬
sponsible, because the salesman acted without
authority ?
In a nutshell, the answer to all these questions
is “course of dealing.’’ A salesman can do, and
bind his employer in doing, anything like or sim¬
ilar to what his employer has recognized the sales¬
man’s right to do before.
To explain, consider the cut-price question first.
I can make this plain by citin.g two imaginary
cases.
First. A salesman goes to a retailer and offers
certain goods at a certain price. The retailer re¬
fuses to pay the price, and the salesman, after
some haggling, cuts it without consulting his
employer, who subsequently accepts the order at
the cut price. This, which we will say happens
several times, gives the retailer to understand that
the salesman has some jurisdiction over prices.
Second. A salesman offers goods to a retailer
at a certain price. The retailer declines to pay
the price and says that unless it can be reduced
he will not buy. The salesman tells the retailer
that he has no authority to chan.ge the price, but
he will wire his house and see if they will change
it. This he does, and afterward reduces it or
refuses to reduce it, as the case may be. This,
which again happens several times, gives the
retailer to understand that the salesman has no
jurisdiction over prices.
In the first case a salesman who took an order
at a cut price would bind his employer, and the
latter would have to fill it; but in the second case
he would not, because in the first the employer
led the retailer to understand that the salesman
had some authority over prices, and in the sec¬
ond case he did not.
As to the collection of money, if the employer
had permitted the salesman to collect previous
bills and had accepted the money and receipted
for them, then he gave the salesman standing as
a collector, and any payment made to the sales¬
man would be legally equivalent to payment to
the house.
But if the salesman had never collected before,
and the retailer knew that the custom of the house
was that he should remit direct, which before he
had always done, then he would pay the salesman
at his own risk, and if the salesman stole the
money, the employer could say :
“You never really paid me at all, for the sales¬
man was not my agent for the purpose of collect¬
ing. I never told you to pay him; I never in any
way led you to believe I wanted you to pay him.”
In this the employer would be right, and the
retailer would have to pay his bill again.
As to the false warranties that the salesman
made, undoubtedly the employer is responsible for
them, and must straighten the matter out with his
customers, even to the extent of takiag back the
goods and refunding the money, and even fur¬
ther than that — paying any loss which his cus¬
tomers sustained. This because making repre¬
sentations and warranties about the goods was
clearly within the scope of the salesman’s author¬
ity, since that was a real part of the business of
selling, which the salesman was sent out to do.
An irresponsible salesman can involve his em¬
ployer in more legal liabilities in one hour than
the employer can untie in a year. Some time I
shall suggest how a salesman can be so tied up
by legal contract that he can be prevented from
doing this.
(Copyright, June, 1915, by Elton J. Buckley.)
June Anthracite Production.
A statement of anthracite production for June
has just been made public by A. H. Armstrong,
chief of the Bureau of Anthracite Coal Statistics.
This shows that for June the total shipments were
5,316,103 compared with the corresponding month
for last year of 6,130,186. Total shipments to
June 30 for the year were 31,595,304 compared
with shipments for the corresponding period of
last year of 32,945,789.
The shipments by railroads and by sizes, with
the total for the two periods, were as follows :
Buckwheat Sizes below
No. 1 and Buckwheat Total
larger sizes No. 1 Shipments
W.
June, 1914 —
Phila. & Reading R
Lehigh Valley R. R.
Central R. R, of N. J...
Dela., Lacka. & W. R. R
Dela. & Hudson Co .
Pennsylvania R. R .
Erie R. R .
N. Y., O. & W. R. W...
Total . .
June, 1915 —
Phila. & Reading R. \V.
Lehigh Valley R. R .
Central R. R. of N. J. .
Dela., Lacka. & W. R. R
Dela. & Hudson Co
Pennsylvania R. R..
Erie R. R .
N. Y., O. & W. R. W...
Year, 1914—
Phila. & Reading R.
V/.
Central R. R. of N. J...
Dela., Lacka. & W. R. R
Dela. & Hudson Co....
Pennsylvania R. R .
Erie R. R .
N. Y., O. & \V. R. W..
Year, 1915—
Phila. & Reading R. \V
Lehigh Valley R. R. . . .
Central R. R. of N. J..
Dela., Lacka. & \V. R. R
Dela. & Hudson Co....
Pennsylvania R. R .
Erie R. R .
N. Y., O. & W. R. \V..
. . 827,887
116,929
944,816
. 1,158,659
167,323
1,325,982
684,079
155,435
839,514
.. 776,679
165,189
941,868
. 566,842
94,400
661,248
. 401,541
69,111
470,652
. 608,589
129,586
738,175
. 186,661
21,270
207,931
. . 5,210,937
919,249
6,130,180
. 745,260
107,151
852,411
888,496
99,757
988,25.3
490,461
118,666
609,127
.. 755,964
132,435
888,399
605,354
92,540
697,894
. . 370,814
75,876
446,690
578,600
114,489
693,089
129,412
10,827
140,239
. . 4,564,361
751,741
5,316,102
. . 5,273,253
758,395
0.031,648
. . 5,575,215
579,860
6,155,075
. . 3,677,861
711,226
4,389,087
. . 3,806,647
791,859
4,598,506
. 2,930,156
485,719
3,415,875
. . 2,803,374
413,714
3,217,088
. . 3,373,083
616,944
3.990,027
. . 1,020,809
127,674
1,148,483
. .28,400,398
4,485,391
32,945,789
. . 4,771,119
042,152
5,413,271
. . 5,097,282
602,566
6,299,848
. . 3,169,964
628,885
3,798,849
., 3,821,309
747,239
4,568,60.8
. . 3,295,080
508,706
3,803,792
. . 2,534,687
435,267
2,969,954
.. 3,163,356
583,726
3,747,082
889,392
104,508
993,900
. .27,342,255
4,253,049
31,595,304
The amount of coal in stora.ge at tidewater on
June 30 this year was 739,729 tons compared with
that on hand May 31 of 751,617 tons. This shows
a decrease of 11,888 tons in tidewater stocks.
No. 5]
THE BLACK DIAMOND
89
An Unnecessary Mistake
Everybody makes mistakes ; those who do not
are no lon.ger with us.
However, there are two kinds of mistakes;
those which could not be avoided, and those
which belong in the “bone” category. The man
who makes too many of this sort is hopeless,
from the standpoint of the employer.
Not long ago a salesman turned in an order
for ten tons of coal, which contained the notation
that the coal was to be delivered any time during
July. On a day convenient to the manager of
the yard, the wagons were loaded up and sent outj
to the customer’s house. There the drivers were
met with the announcement that the customer had
said August, and not July.
The wa.gons and their drivers were held up
while the manager made arrangements for a shift
in the deliveries, so as to put that coal in the bin
of somebody else. Finally he was able to get
this fixed up, but the net result was the loss of
considerable valuable time all around.
The moral seems to be that in addition to sell¬
ing the coal, the salesman ought to take just as
much pains as possible in writing up the order,
so that there will be no confusion in carrying it
out. Incidentally, this is one of the most fre¬
quent complaints that buyes in all lines have to
make — that the order is not transmitted correctly
to the house.
Too Much Competition
The old-fashioned mills that were operated by
horsepower had long arms to which the horses
were fastened. The animals walked round and
round in a circle, and there hoofs wore a de¬
pression in the .ground, because the same earth
was constantly trod upon.
The coal dealer who is in a market where there
is plenty of business, and also plenty of competi¬
tion, sees his competitors and their salesmen so
often that he is sure to tell himself that the field
is overcrowded, and that it is mighty hard to
get along in the business.
The chances are that the dealer and his sales¬
men, and other dealers and theirs, are following
the beaten path — going around in circles — instead
of striking out for new business and gettin.g after
new customers.
The writer made an experiment in this connec¬
tion not long ago. Four people living in a city
of 250,000, all of them buyers of coal at retail,
were asked how many times this season their
business has been solicited. In every case it ap¬
peared that the only calls were from the sales¬
men of the concerns which had been previously
handling their trade.
Now, as a matter of fact, this was the most
comfortable condition that could have existed, in¬
asmuch as each man held on to his trade, instead
of swapping orders with the other fellow. But
it certainly didn’t sug.gest the terrific, feverish
competition that many dealers believe exists.
If the coalman who really wants to expand his
business were to make a point of calling on at
least five “prospects” every day, and to have his
salesmen look for new business, as well as take
care of the old, he would probably add a good
deal of trade without much additional effort.
One Kind of Service.
Suppose ^ou had a customer who was buying
the most expensive coal you sell, coal on which
you make a good profit.
Suppose the customer were using this coal for
a purpose for which some other and cheaper coaf
would be entirely suitable and would give equal
satisfaction.
Would you sug.gest making the change to the
cheaper variety?
A good many dealers would undoubtedly per¬
mit the customer to buy whatever coal he wanted,
and if he ordered the highest-priced, so much the
better. Others, who believe in service as an ef¬
fective factor of their business, instead of merely
as a catch-word in advertising, would consider
their part of the business poorly taken care of,
unless the best coal for the purpose were se¬
lected; and the “best” coal, of course, is that
which does the work at the lowest cost. A cheap
coal which gives satisfaction in a certain connec¬
tion where a more expensive kind was being used
previously would undoubtedly be better, from the
standpoint of the customer, than the costly va¬
riety.
There is a good parallel, alon.g the lines of
service and its effect on business building, in the
fire insurance business. The old-style agent who
wanted to charge “all the traffic would bear”
never made a suggestion as to improving the
risk, so as to get a lower rate, because, thou.gh
that would benefit the company and the assured,
it would reduce his immediate income. The mod¬
ern agent is urging his customers to do certain
specific things to reduce the fire hazard, and by
so doing he is reducing the premium and thereby
lessening his commissions. But is this poor
policy? No, because the customer feels that he
is bein.g “taken care of,” and when he gets serv-
,ice like that, he doesn’t feel any desire to change
agents.
If your hold on your customers is insecure,
think over the service proposition from the stand¬
point of making them like the way you are hand¬
ling their business. Maybe there is a chance to
make improvements here aiul there.
Who Pays?
In the ordinary coal business, where most of
the accounts are charged, and cash is paid only
if the customer does not feel like taking advan-
ta.ge of the credit privilege, which is generally
extended, an interesting question is that of who
pays for the items of interest, bookkeeping, credit
losses and other things which are involved in
selling coal on credit.
It is evident that the customer who planks
down the cash, or who settles his bill at its first
presentation, is paying; because the one who takes
months to pay out, and who requires constant
work on his account in the form of credits and
rebalancing, and constant visits on the part of
the collector, is getting his coal at the same price
as the man who paid for it as soon as it was
delivered, or as soon after that as the bill fell
due.
Since the retail price must necessarily include
all of the e.xpenses of doin.g business, it must
include those represented by losses suffered
through bad accounts, which are ultimately
charged off the books. This loss is obviously as¬
sumed by those who pay.
If the number and volume of accounts carried
on the books for months at a time is so great
that the capital of the dealer is largely tied up
in this manner, so that he has to go to the bank
for money with which to carry on his business,
the item of interest is one which plays a part
in increasing the overhead. Assuming that this
is charged into the selling price, as it, of course,
should be, the man who pays promptly is ap¬
parently paying interest on the money which, in
effect, is loaned to those who take their own sweet
time about paying for the coal. He is paying
interest on his own purchase, even though he
pays cash; or, to put it differently, he is paying
for the privilege of taking a long time to settle
the obligation, though he does not take advan¬
tage of it.
Summing up, it must be admitted that the
dealer who is operating on a credit basis is dis¬
criminating a.gainst his best customers— those wl;r)
pay promptly and cause little trouble and expense
in settling their accounts. Of course, it is en¬
tirely possible that competitive conditions prevent
the dealer from including in overhead all of the
expenses connected with operating a credit busi¬
ness, and in that event his net profit suffers most
from it. But whether the burden falls on the
good customer or on the dealer, it is evident
that somebody pays for the expenses which are
involved in handling credit accounts, collecting,
credit losses and interest.
“Bargains” in Coal.
The July issue of The Cellar Door, the house
organ of the J. A. Alahlstedt Lumber & Coal
Company, of New Rochelle, N. Y., contains an
interestin.g story, intended to bring out the points
that bargains in coal, like everything else are not
always what they seem. ’
1 story was of a newspaper publisher who
had printed an editorial against bargain sales
and had brought down the wrath of the store-
keepers, who appeared at the sanctum to protest
“The interview was opened,” the story con¬
tinues, by a man named Callahan, whose store
did the biggest business in town. We knew
from his name that he had a temper, so we gave
him an extra smile of welcome. He said, ‘Do
you want to undermine public confidence in my
stor^e? Your editorial warns women a.gainst so-
called bargains, and practically gives the lie to our
advertisements. We advertise only the truth.
When we hold a bargain sale, it is really a sale
of bargains.’
right,’ echoed his seven colleagues.
“ ‘Look at this,’ he went on, opening a copy of
our noon edition, ‘here’s the advertisement of a
special sale of bargains we hold tomorrow; every
word^ of it’s the truth, and we can prove it.’
“We took the paper from him and at random
pointed to an item headed, ‘Special— These Coats
Sell Everywhere at $12 — Our Price $5.85.’
“ ‘Do you mean, Mr. Callahan, that these seven
other .gentlemen, your competitors, get $12 for
the coat you are selling for $5.85?’
“He turned red. ‘Well, they look for $12 values
and a woman might well consider them such.’
“Seven heads leaned over the table, read the
item and examined the illustrations.
“Spoke up Mr. Isaacson of the Emporium, ‘We
have that same coat; we sell it regularly for
$5.50.’
“ ‘We get $6.’ said another.
“‘We sold 200 of them at the first of the sea¬
son for $4,’ said Mr. Marx of the Leader.
“Callahan was getting redder and redder.
“ ‘I know the coat — we have a better one for
$4,’ said another.
“ ‘Mr. Callahan,’ we asked, ‘why do you ad¬
vertise in our paper? Simply because you get
your money’s worth. You make us prove our
circulation; you insist upon certain position, and
you pay your bills gladly, because you’re sure
you .get what you pay for. One of the after¬
noon papers offered you a contract last week for
four cents below their published rate; we find
out such things. You turned it down because it
looked too cheap. You suspected the value of¬
fered. You can’t sell $15 worth of anything for
$5.50 and make a living ; some day women are
going to find it out, and your biggest asset will
he gone — confidence. There have been complaints
lately of shoppers who did not find what you ad¬
vertised to be as represented. The editorial of
which you complain was a friendly hint to you
that times are changing.’
“Eight men went out mad— and six of the
stores changed their advertising policy. The
other two are not as big as they once were.
“We don’t believe in bargains— if bargains mean
something for nothiag.
“When we pay $7 for a load of coal, we want
seven good, honest dollars’ worth of coal, and
that’s all.
“No more — no less!”
The Consumers Coal & Feed Company of
Marion, Ohio, which is owned jointly by N.
E. Arnold and L. B. McNeal have recently
incorporated and in addition have purchased
the business formerly conducted by the Johns
Coal & Feed Company.
90
FUBIiISHED EVEKY SATUBEAY BY THE
BEACH DIAiaONB COMFAITY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH EIAMONB COMFAHY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, July .11, 191.5.
INDEX.
Special Articles.
Page
Have Ohio's Miners Killed Ohio’s Coal Trade? . 81
Decision of the Commission on Spotting Charges. ... 82
Convention of Mining Congress Called . 83
Uniform System of Accounting and Costs . 84
Record of the Lackawanna Coal Company . 84
The Market for Franklin County Prepared Coal . 85
Miners’ Union Is Canvassing .Anthracite Field . 86
New Hocking Rate Goes Into Effect . 87
Pennsylvania Fuel Tonnage . 87
Lackawanna Coal Company . 87
England's Coal Shortage . 87
No Strike of Anthracite Miners, But — . 87
Hurley Outlines Trade Commission Plan . 88
Law of a Case Involving a Dishonest Salesman . 88
June Anthracite Production . 88
Field of the Retail Dealer . 89
Editorial . 96
News Local to Chicago . 92
Milwaukee Dealers’ Picnic . 92
A Modern Coal Pocket . 92
Facts Which Determine Our Export Prospects . 93
Market Reports.
General Review and Chicago.... . 94
Pittsburgh, Louisville and Detroit . 95
Cincinnati. St. Louis and Denver . 96
Indianapolis, Toledo and Birmingham . 97
New York . 98
Philadelphia and Buffalo . 99
New England, Baltimore and Omaha . 100
Hocking Valley . 15
Two Coal Decisions.
The decision in the government’s case
to dissolve the Reading Company is in¬
teresting because it is on the facts. The
Government lost its case because it did
not prove what its complaint alleged.
The court “declined to find” that the
company had violated the law by inten¬
tion, and then proceeded to inquire
whether it had violated the law by mis¬
adventure.
The court found no evidence that other
producers had been injured, and no at¬
tempt was made to prove that the price of
coal was excessive.
There was no discrimination injurious
to other producers, and nothing was shown
that was extortionate or unreasonable.
The rates for freight in particular were
under regulation by the Interstate Com¬
merce Commission. There was no proof
that the profits were unreasonable apart
from the reasonableness of the process, by
which they were produced.
The court declined to go back before the
reorganization of 1896, but made especial
inquiry into the allegation that a mono¬
poly in the coal trade was shown by the
acquirement of unreasonable supplies of
unmined coal. On this the court ruled
that as miners the companies were under
the necessity of looking ahead and pro¬
viding reserves of surplus coal lands even
in large amounts.
The Reading is absolved on the very
THE BLACK DIAMOND.
point which was adverse to the Lacka¬
wanna. The contract between the Lacka¬
wanna miners and carriers limited their
transactions to themselves. That was
found obnoxious both to the law forbid¬
ding restraint of trade and the law for¬
bidding railways to carry commodities in
which they are interested, thereby making
competition with others unfair.
In the Reading case the government al¬
leges that the similar contract is unlawful
because of the absence of such limitation
of business, thereby making the business
monopolistic for lack of the limitation.
Already the Lackawanna has taken steps
to comply with the law. It is only the
irresponsible who can defy the terrors of
the law. Those who have given hostages
by investments of hundreds of millions of
capital irremovably attached to the soil
have no alternative but to accept the
court’s interpretation of the law.
It is announced from Washington that
the Reading case will be appealed. It is
difficult to see how the government could
hope to succeed on an appeal on the facts.
The only appeal on facts is by contrary
evidence, not by an appeal to other opin¬
ions on the same state of evidence. — ■
Neiv York Times.
Compulsory Cost Accounting.
The coal trade has been talking for
eight or ten years about the advantages
of accurate cost accounting. That is
about as far as it has gone. Every one
has talked about it ; few have adopted or
applied it. Instead, retailers have car¬
ried their cash in one pocket and the bills
in another — with the mortgage on their
business — in their hat. Operators have
kept their accounts on the stubs of their
check books and have accepted some¬
body else’s statement as to what it costs
to produce coal. As a talk fest, it was
beautiful. As a cause of action, it was
sterile.
But now the United States govern¬
ment is about to force coal men to adopt
standardized accounting. Thus we will
begin to practice what we preach not be¬
cause preaching has convinced us, but be¬
cause we are forced to change our meth¬
ods.
Government pressure is going to be
exerted from three different directions.
The nation has passed, for example, the
income tax. Since it is going to collect
that tax, it will want to know that it is
taxing the “income” — all of it — and not
the “earnings.” Its experts, eager to get
all the information, will not tolerate some
bookkeeping used by coal men. There is
one place where proper cost accounting
will be urged.
Also the nation has created the Federal
Reserve Board. This is discounting the
commercial paper held by the member
banks. It will not accept the commer¬
cial paper put out by a company which
is not sure of itself — one which does not
employ a recognized form of accounting.
Therefore, if coal men want their paper
to be accepted by the banks they must
have the kind of paper that may be dis¬
counted. If that kind of paper is to be
issued and if the Federal Reserve Board
sticks to its ruling, the operators must
adopt a standardized form of accounting.
Also the nation has created the Federal
[July 31
Trades Commission. This announces
that it is going to advise men in industry
to adopt a standardized form of account¬
ing. No consideration, it would seem,
will be given to concerns which do not
first adopt the standardized method of ac¬
counting. That is, if a coal man insists
upon using his present method of book¬
keeping and then puts up a plea of pov¬
erty, the commission will turn a deaf ear.
It will tell him that he cannot prove what
he says mainly because his books are in¬
complete.
Apparently many new and big oppor¬
tunities are being made available to busi¬
ness men by the government. But the
price of those oportilnities is to adopt
standardized accounting. Thus coal men,
to get any advantage of these opportuni¬
ties, must change their accounting sys¬
tems. This means that the trade is to be
compelled to abandon its interesting but
purposeless debate about accounting and
adopt a real system.
Our Demands on Germany.
A cartoonist expressed the recent situa¬
tion between the United States and Ger¬
many precisely when he pictured it as a
tennis game with Uncle Sam serving and
the Kaiser returning the ball. That is,
we were not getting any place ; we were
simply exchanging notes.
However, an end was put to that non¬
sense by President Wilson’s firm note
released for publication on last Saturday.
The point made by the president was
clearly and plainly drawn. In a few
words it may be summed :
“Does the German government mean to
say that because it is in a quarrel with
England, which it cannot end success¬
fully, the United States, which is not em¬
broiled with either country, must be in¬
jured ?”
The German government had, in effect,
contended that it was going to coerce
the United States into compelling Eng¬
land to let food supplies pass to Ger¬
many’s civil population or stand the con¬
sequences — having its ships blown up, its
commerce interfered with, and its citi¬
zens killed.
W'e are under no obligations to Ger¬
many in any such sense. We are not
called upon to fight its battles. We are
the cat’s-paw for no nation on earth, and
we will not be because we are big enough
to take care of ourselves. If Germany
has any quarrel with England, it must
settle that quarrel itself ; we are not going
to be drawn into it by the insistence of
Germany or any other government. And,
if Germany or any other country tramples
upon our toes, it will learn to feel the
weight of our fist. That is the plain
ineaning of President Wilson’s note of
last Saturday and, candidly, he said the
piroper thing under the circumstances.
This does not take an unneutral posi¬
tion as to the war in Europe. It merely
announces the position of the United
States, which is that it insists upon re¬
maining a neutral power and cannot be
forced into any other position by any one
of the contestants.
If you are selling coal on credit, you are
lending money. Would you lend money
to all the men you “trust”?
THE BLACK DIAMOND
91
No. 5]
Cash Versus Credit.
It may prove impractical, for years to
come, to get all retail coal dealers to
abandon the credit system and to sell coal
strictly on a cash basis. Still, any one
who listens to the good-natured but
mildly sarcastic remarks of G. T. Rider
of Louisville upon the subject must come
to the conclusion that there is much vir¬
tue in the cash basis.
Mr. Rider in his talk before the coal
convention, did a sensible thing when he
separated coal from all other forms of
merchandising. He said that it is a busi¬
ness separate and apart from any other.
That is to say, to put it plainly, the mer¬
chants in dry goods extend credit to peo¬
ple to induce them to buy more than they
actually need and a trifle more than they
can safely afiford. The man whose wife
has enjoyed one or more credit accounts
at the department stores in the larger
cities realizes that this is exactly the re¬
sult of the system. Most persons who
patronize such stores buy more than they
can afford. Thus the credit system is, to
the big department stores, one method of
increasing sales. The burden of worry
attendant upon credit is transferred from
the store to the buyer.
But with coal, it is a different matter.
Coal is a necessity. The people use only
a certain amount of it. No system of
credit extension will induce any con¬
sumer to buy more than he needs or more
than he expects to use in the near future.
Therefore, credit in coal does not increase
sales in coal. It never can.
As Mr. Rider views it, the net result
of the credit system in retail coal mer¬
chandising is to increase the labor of the
coal selling company, to increase its loss
and to increase its cost of doing business.
As he sees it — and this seems to be the
best way to look at it — it is a system of
many demerits and no merits.
In this way, Mr. Rider effectively dis¬
posed of every point but one which was
made in a recent editorial in this paper
on this subject. That point was that the
credit system compels the merchant to
be abreast of the times in order to hold
his credit customers on his books.
On this score, Mr. Rider says that it is
a fallacy to believe that the credit system
has any such merit. On the contrary, he
says that if another man’s price is lower,
the credit customer leaves his account
standing on your books to go and buy the
cheap coal for cash of a competitor.
Whether this is generally true or not is
open to discussion. However, there is a
lot of truth in what he says about the cash
basis. Therefore, this one point is not
big enough to cause any one to favor the
whole credit system on its account.
Everything considered, the cash basis is
by far the better. According to the ex¬
perience of those who have tried it, it
only takes a little courage to make it a
fact.
Social Arithmetic.
A communication from Leo Romanski,
a coal wholesaler of Chicago, was pub¬
lished on page 26 of The Black Diamond
of July 10. This presents a matter which
is no less important than an example of
social arithmetic and as such suggests
something of debate which we hope the
author will see fit to continue.
Mr. Romanski takes up the cudgel for
certain eminent writers mentioned un¬
favorably in our editorial on “A Diseased
Nation.”
He admits that “the laborer is better
fed, better housed and better paid than
ever before.” He says that one company
which he represents is spending much
money to improve living conditions. It
is equally true that the cost of living, at
the same time, has increased in greater
proportion to his income, with which to
buy the improved living conditions.
Therein lies the source of discontent.”
The words quoted are those of his com¬
munication. Then he eulogizes all writ¬
er;; — except only Mr. Hearst, the leader
of them all — who want to go still further
along these three lines.
To get a proper point of view, let us
reduce this to a sum in arithmetic. An
article sells for a dollar. Of that the divi¬
sion is as follows :
Labor . $ .75
Material . 10
Selling, etc . 10
Capital . 05
Total . $1.00
The social man says that the cost of
living has increased. That is true enough,
but why? Largely because labor is get¬
ting two divisions of the selling price
rather than one. That is, wages have
not decreased but instead business has
been paying out increased sums on social
account. Thus business has to meet the
regular pay roll plus enough to give the
worker an old-age pension, compensation
for injury, hospital service when sick, and
a doctor to look after his family.
Let us reconstruct the problem. An
article sells for a dollar. Out of it must
be paid :
Labor . $ .75
Social . 15
Material . 10
Selling, etc . 10
Capital . 05
Total . $1.15
That explains the high cost of living.
The selling price must be marked up.
Mr. Romanski’s discussion leads us to
believe that he would also increase the
wages of workers. This is typical of the
social thought of today. It insists that
business shall do all sorts of things for the
workers’ welfare ; shall increase wages ;
and shall decrease the selling price of
goods. That is, business must increase
the cost to $1.15 and reduce the price to
$0.85.
Mr. Romanski is a business man.
Therein he differs from most social think¬
ers — except Hearst. He knows that the
coal business is being forced into insol¬
vency by this very decreasing price and
this rising cost of production. Under
the circumstances, who, pray, is to pay the
bill for all of this elaborate sociability?
If business cannot pay the bill out of cur¬
rent prices, shall the additional cost be
paid out of the private revenue of the em¬
ployer ?
Arithmetic in this situation is insistent.
If we are going to continue to increase the
standard of living and the wages of the
worker, we must also increase the selling
price of goods. As the selling price in¬
creases, we must, in turn, increase the
wage of the worker. Thus the head will
follow the tail and the tail the head in a
mad race around a circle. The end is
higher and higher prices for everything,
and higher cost of doing business, and in
the end an impossible situation which can
be rectified only by a collapse and recon¬
struction.
To stop this foolish pursuit of the im¬
possible, we must be content to make so¬
cial [irogress a little at a time. We must
be content to improve wages and living
conditions a little at a time. We must
not permit the increasing outlay for so¬
cial things to outrun the economy in¬
cident to the improvement in our method
of doing business. We cannot do so and
hope to retain a solvent community.
Cautious Generosity.
Elton J. Buckley, who writes most en¬
tertainingly on subjects pertaining to the
law', is disposed to w'arn business men to
be cautious about being generous to faith¬
ful employes. He makes one point wdiich
is particularly interesting.
He assumes that an employer has sev¬
eral employes who have worked for him
faithfully for a number of years. He
assumes, also, that the employes have
been responsible for a great part of the
employer’s success. The human employer
— if he is human — wants to give these men
something more than a mere salary as a
reward for what they have done. Llere
the danger lies.
Mr. Buckley says that the ordinary
business man wants to take these faithful
employes into partnership. The accepted
— but dangerous — way to do that is to
incorporate a company and make the em¬
ployes stockholders. Right there he points
a legal difficulty by citing a case wdiich is,
in substance, as follows :
An employer so disposed toward em¬
ployes of this character did the customary
thing and distributed stock. The majority
of the beneficiaries took it in the right
S])irit. However, one stockholding em¬
ploye developed a nasty streak. He in¬
sisted upon the rights of the “minority
stockholder.”
He went into court to com])el an ac¬
counting of the business and demanded a
right to see the books and that he be
given all kinds of information about the
conduct of affairs. Getting this informa¬
tion, he charged mismanagement and that
no consideration was given the small
stockholders.
Mr. Buckley says that to take such an
action is always w'ithin the right of the
minority stockholders. It does not mat¬
ter w'hether he was given his stock as a
bonus for faithful service or whether he
])aid for it outright.
Seeing the facts, this w'riting huvyer
is dis])Osed to w'arn business men that
such a practice is op])osed to their peace
of mind and to the uninterrupted posses¬
sion of the business.
He goes further, how^ever, than merely
to issue a warning. He show's how' the
same amiable intention can be carried
into efifect without danger, lie advises
that, instead of giving the stock to the
emjiloyes and instead of giving them the
right to vote, the employer set aside cer¬
tain shares of the stock in the company for
the benefit of certain enqdoyes. They will
therefore get the benefits from the stock
without any ability to annoy the owmer.
92
THE BLACK DIAMOND
[July 31
News Local to Chicago.
Kentucky was represented on the street this
week l)y J. T. Bradley of the Trosper Coal Com¬
pany of Hradel, Ky.
Roger Corman, formerly witli tlie O’Cara Coal
Company is now connected with the I’ilsen Coal
Comiiany.
J. R. McFarland, general sales agent of the
O’Cara Coal Company, siient the early part of
the week in the Twin Cities.
A. A. Bryden, general sales agent of the Bord¬
ers Coal Company of St. Louis, was calling on
the trade during the week.
Dan J. Coffey, vice-president of the Missouri
& Illinois Coal Company of St. Louis was a visi¬
tor this week.
D. E. Richards, president of the Bell Coal &
Mining Company of Cincinnati, Ohio, spent a por¬
tion of this week calling on the Chicago coal men.
The explosion at the No. 1 Christopher mine
of the C. M. Moderwell Company in no way
interfered with shipments and they are prepared
to take full care of their customers’ demands.
E. H. Coxe of Knoxville, Tenn., paid his re¬
spects to his friends in the trade. Mr. Coxe will
he remembered as the former general superin¬
tendent of the Tennessee Coal & Iron Company.
D. E. Russell, vice-president of the Delaware,
Lackawanna & Western Coal Company, with head-
(juarters at Buffalo, was a visitor with the trade
this week.
The coal trade golf tournament was held on
Wednesday of this week at the Calumet Country
Club. Robert A. Gardner was showing a superior
brand of golf.
W. J. Carney, president of the Carney Coal
Company will leave Chicago July 31, for a month’s
automobile tour with the Adirondack country of
New York state as his objective point.
Joseph H. McNamara, who purchased the coal
for J. C. Hubinger Brothers Company of Keokuk,
Iowa, was in town shopping for their coal wants,
which amount to from 150 to 200 tons a day.
The Groveland tipple of the Gilmore & Solomon
Coal Mining Company in the Peoria district was
destroyed by fire on Wednesday of this week.
There were no casualities.
The Consolidation Coal Company is having its
offices in the Fisher building remodeled, having
been forced to take more office sjuice on ac¬
count of the steady increase in its western Inisi-
ness.
Paul L. James has resigned as western man¬
ager of the C. G. Blake Company. Mr. James
has gone to his farm in West Virginia for a rest.
He hasn’t made known his future plans, but no
doubt the call of the coal trade will assert itself
before many moons.
The coal committee of the Association of Com¬
merce sent out a letter soliciting donations from
the trade for the sufferers of the Eastland catas¬
trophe. A great many members of the trade
have already contributed either direct or through
the Chicago Coal Merchants’ Association.
Dr. John E. Beebe of the Buchanan Coal Com¬
pany, will try to banish the whirring of the spiral-
izer by spending a two week’s vacation at Dela-
van lake. Chasing the elusive golf ball is the
doctor’s chief delight when not seeking new mar¬
kets for Old Ben coal.
W. C. Hill, vice-president of the Chicago &
Carterville Coal Company, has issued a new cir¬
cular announcing the prices for various sizes of
coal as follows : Hickory Hill G in. select lump,
$1.60 mines; six by three select egg, $1.60 mines;
No. 1 washed egg, $1,G5 mines; No. 2 washed nut,
$1.3.) mines; No. 1 dry screened nut, $1.40 mines.
A number of Franklin county operators this
week put out a new circular of prices effective the
first two weeks in August, naming $1.60 on No. 1
lump, egg and nut, $1.40 on No. 2 or special stove,
and relative prices on other sizes. Screenings, of
course, are not subject to circular, varying with
the market.
A report recently made to the Inter-State Com¬
merce Commission showed that the potential
capacity of the mines within twenty miles of
St. Louis was double the coal consumption of
that city. This did not take into consideration
the tonnage coming from the Williamson and
Franklin county.
W. D. Elmstrom, president of the Chicago Coal
Merchants’ Association, circularized the members
of the organization this week calling for contrib¬
utions to relieve the distress of those involved in
the disaster of the Eastland on the morning of
July -24. The remittances should be made pay¬
able to A. J. Bunge, the treasurer, and should be
so identified that they will go to the relief fund.
George Pauli, vice-president of the Common¬
wealth Fuel Company of Pittsburgh, spent a part
of the week in Chicago. Mr. Pauli says condi¬
tions arc particularly l)right in the Fairmont dis¬
trict where their interests are located. The mines
are working full time and, although a great deal
of the tonnage is for water shipment he says
that local demands are very satisfactory.
Nine miners were killed and a number of others
severely burned in a gas explosion at the No. 1
mine of the United Coal Mining Company at
Christopher, Illinois, July 27. The explosion oc¬
curred in an entry where a pocket of gas was
concealed. It is presumed that one of the miners
entered the tunnel and his oil lamp ignited the
gas. Little damage was done to the mine as the
explosion was confined to the vicinity of the room
where it originated.
The Buchanan Coal Company announced to
the trade that effective August 1, 1915, F. A.
Barthelme is appointed northwestern sales man¬
ager, with headquarters at No. 618 Security Bank
building, Minneapolis, Minn., vice James E. Rend
resigned. Mr. Barthelme has been a member of
the sales force for a number of years, having his
headquarters at Waterloo, Iowa. Previous to
joining the Buchanan forces he conducted a suc¬
cessful local coal business at Joliet, Ill.
Web L. Miller of the Miller Coal Company,
St. Louis, was a visitor in Chicago this week.
Mr. Miller maintains that St. Louis is the most
exasperating coal market in the United States.
Every condition that operates to destroy all
chance of getting a fair price for coal can be
found here. Short-rate mines, stripping opera¬
tions, co-operative companies and non-union coal
e.xplains why lump coal is selling for ninety cents
with a mine run average about seventy-five cents.
Erank P. Doherty, president of the Black Star
Coal Company, left on Thursday for Duluth. He
will make the trip on the ore steamer John J.
Block, accompanied by a number of his business
associates. Mr. Doherty was given a “going
away’’ party at the Automobile Club July 28, by
a few of his friends where he was presented with
a token of esteem. The presentation speech was
made by George Roth, better known as the “zinc
king.” This title is derived from his heavy in¬
terests in the lead and zinc mining industry of
southwestern Wisconsin.
Jno. E. Beebe, director of the publicity and
Trade Extension Department of the Buchanan
Coal Company, has just returned from a south¬
western trip which included St. Louis, Kansas City
and Omaha. Dr. Beebe says in his opinion one
reason why the dealers are backward in order¬
ing coal is due to the inability of the farmers to
get to town to take out coal. Due to the ex¬
traordinary heavy rains the roads are almost im¬
passable, consequently hauling a heavy load of
coal does not appeal to the farmer at this time.
The crop prospect in this section was never bet¬
ter and a bumper return is expected. Dr. Beebe
also noted that Franklin county coal is taking the
place of the Arkansas semi-anthracite product in
many sections of the southwest.
Competing with H. M. Hall in the best ball
twosome staged by the Chicago Coal Trade Golf
Association in their monthly tournament at the
Calumet Country Club recently, Robert A. Gard¬
ner of the Hinsdale Golf Club lowered the
record for the remodeled course to 73. The
event was won by R. L. Shepard and A. F.
Smith, with a card of 82-13-69, A., O. Tandy
and N. B. Birkland having 86-16-70. Hall and
Gardner had third low net with 74-2-72. In the
semi-final round of the Lemon Trophy N. B.
Birkland defeated A. O. Tandy, 3 and 1, and H.
Hall defeated D. E. Willett, 1 up. G. S. Wood
defeated D. Payne, 2 up, in the semi-final for the
Hostler trophy, and will play W. C. Hill in the
final. E. T. Franklin won the Black Diamond
Trophy emblematic of the club championship by
defeating H. A. Hall, 2 and 1, in the final. In the
president’s cup final, played under handicaps, Ed¬
ward S. Smith defeated E. T. Franklin 5 and 3.
The qualifying round for the women’s champion¬
ship at the Onwentsia club was postponed until
today on account of the rain.
Bear River Valley.
Denver, July 29. — {Special Correspondence.) —
More than .$3,000,000 is being expended by coal
companies in the Bear River valley in Routt
and Moffat counties, and a dozen properties
are being opened. The town of Mount Harris,
one year old, is emiploying 250 workmen and
several cars of coal leave that camp daily for
Kansas points.
The coal camp at McGrcgory, a little fur¬
ther up the Bear river, is being rgpidly de¬
veloped, and shipments will begin as soon as
the track can be completed over the Bear river
ridge.
The Victor-American Fuel Company of
Denver recently purchased a tract known as
the Dawson farm, which within a few nLonths
will be a producing mine.
Joining Mount Harris on the cast is a mine
owned by the Italian-American hank of Den¬
ver, which is to be developed as soon as a
railroad spur now being built is finished.
Mil'waukee Dealers Picnic.
The Fuel Dealers Social Club of Milwaukee
held its tenth annual picnic Tuesday, July 27,
at Waukesha Beach. With the co-operation of
the Milwaukee dock men and the long experience
of the dealers, this affair was, as ever, a big so¬
cial success. This year on account of the
weather the attendance dropped, but 300 pic¬
nickers showed up at the Terminal station on
time. The children of the party were furnished
with all the necessary carnival toys that go to
make for happiness, while the fair sex were pro¬
vided for in the matter of ice cream tickets. As
it rained most of the day, all of the games with
the exception of the baseball game were held
in the dance pavilion. When it came to baseball
the wholesalers made the dealers look like a lot
of bush leaguers, winning the game by a score
of 26 to 10. After a full day’s enjoyment the
party returned a tired but happy lot, looking for¬
ward to the next annual outing.
A Modern Coal Pocket.
Bliss Neilson has operated a retail coal yard
in connection with his feed mill on the banks
of the Champlain canal at Stillwater, N. Y.,
for many years. The proposed abandonment
of the canal and the remloval of traffic into
the improved Hudson river made it necessary
for him to build a plant on the railroad and
a photograph of his new silo coal pockets is
shown herewith.
The plant consists of three 18x30 feet bins
Bliss Neilson’s New Pocket.
holding 210 tons each, while additional storage
capacity is obtained by making the foundations
a part of the bins. The foundations are seven
feet above ground and the coal is elevated
twelve feet above the tops of the bins, from
which bins it slides in chutes to coal elevators
located at the center of each bin. The staves
used in the bins are dipped in creosote oil as
a preservative.
The plant was built complete by the Cream¬
ery Package Manufacturing Company of Rut¬
land, Vt., and the machinery furnished by the
Gifford-Wood Company of Hudson, N. Y. It
has been in operation since December 1, 1914.
No. 5]
THE BLACK DIAMOND
93
Facts Which Determine Our Export Prospects.
The Export Situation.
Shipments of bituminous coal over the At¬
lantic seaboard for the past week did not hold
up in keeping with the earlier weeks of the
present month, or within the records made in
June. For the week ending July 24, Baltimore
exported only 31,989 tons, whereas for the first
two weeks in the month she was exporting ap¬
proximately 60,000 tons per week. In June,
Baltimore averaged over 75,000 tons per week.
Bunker requirements of steamers taking cargo
coal are running heavier, seven steamers tak¬
ing cargo coal from Baltimore last week re¬
quiring 12402 tons of bunkers. Shipments
from Hampton Roads also eased off, but not
as radically as at Baltimore.
At the moment the outlook for August is
encouraging. A great number of ships are un¬
der charter to take coal during the month
from the various Atlantic ports, and it is ex¬
pected that the month will show a much
heavier tonnage exported than for July. Some
of our large exporters have large contracts,
upon which they are shipping regularly, and
some business has been closed during the pres¬
ent month, though not up to the volume that
the trade anticipated, in view of the Welsh
labor troubles.
Last week some of the papers had something
to say about a large western Pennsylvania op¬
erator securing, or being in position to close
a contract for approximately 1,000,000 tons.
We learn upon very good authority that this
interest is shipping upon a 80,000 ton con¬
tract, and that while negotations are pending
on a contract that may mean shipments of
1,000,000 tons or more, that they are by no
means assured that they will secure it.
Prices at seaboard for export are somewhat
firmer, especially on the New River and Poca¬
hontas coals. These command $2.85 for prompt
shipment at Hampton Roads, while low vola¬
tile coals at Baltimore and Philadelphia can
still be secured at very favorable prices, namely
at $1.25 to $1.40 at the mines, taking a rail¬
road rate of $1.18 to Baltimore and $1.25 to
Philadelphia.
Bunker requirements for cargo steamers con¬
tinue to run heavy, and this is proving to be
one of the most profitable avenues of trade
of some people who specialize in this end of
the coal trade.
Recent Coal Freight Charters.
Steamer Isthmian, Norfolk to Caleta Calosa, coal,
$6.30, August. .
Steamer King Idwal (Br.), Baltimore or Virginia to
Montevideo, coal, 34s.
Steamers Clontsham (Br.), and Pennine Range (Br.),
.Atlantic Range to Buenos Aires or La Plata, coal, 34s
6d, prompt and August loadings respectively.
Steamer Andreas Gerakes (Greek), Hampton Roads to
west coast Italy, coal, 36s 6d.
Steamer Stryn (Nor.), Baltimore to Malme, coal, p. t.
Steamer Polamhall (Br.), Atlantic Range to west coast
Italy, coal, 41s, five trips, August.
Schooner Chas. G. Endicott, Virginia to Maranham,
coal, $6.50.
Schooner Three Marys, Baltimore to Porto Rico, coal,
p. t.
Steamers Frederick Knight (Br.) and Blackfrigate
(Br.), Baltimore or Virginia to River Plata, coal, 34s fid,
July.
Steamer Jersey City (Br.), Baltimore or Virginia to
west coast of Italy, coal, 39s 6d, August.
Steamer Fert (Ital.), Baltimore to Savona, coal, 37s.
Steamer Fagersand (Nor.). Baltimore to Point-a-Pitre,
Guadaloupe, coal, p. t., spot.
Steamer Elini Strathatos (Greek), Baltimore to Pal¬
ermo, coal, 41s, spot.
Steamer Sydic (Swed.), Baltimore to Sweden, coal,
p. t., spot. .
Steamer Stormont (Br.), Philadelphia to Autilla, Cuba,
1,231 tons, prompt.
Schooner Marcus L. Urann, Norfolk to Rio Janeiro,
coal, p. t., prompt.
Steamer St. Andrews (Br.), Baltimore to Montevideo,
coal, p, t.
Steamer Donepeses Strathotos (Greek), Philadelphia to
Barcelona, coal, p. t.
Schooner Robert P. Murphy, Philadelphia to Mayagnez,
P. R., coal, $2.85.
Schooner William Booth, Philadelphia to Calais, coal,
$1.35.
Foreign Trade Rates.
W. W. Battle & Co., Produce Exchange, New
York, reports as follows under date of July 26:
The number of steamers available for coal
has decreased materially since our last report,
and the freight market is considerably firmer,
owing to the increased demand for steamers
for grain. Owners are not willing to accept
shippers’ views on these grain freights, but
shippers are advancing their ideas, and prob¬
ably a number of steamers will be chartered
for grain in the near future. This grain de¬
mand makes it difficult to quote probable
freight rates on Mediterranean coal with any
degree of certainty, but if you have any in¬
quiries nlease communicate with us and we
will endeavor to give you a close quotation.
We would quote freight rates on coal by
steamers as follows:
West Coast of Italy . 37s. @40s.
Marseilles . 36s. @38s.
Barcelona or other good Spanish port.... 34s. @36s.
(Spanish dues for account of cargo)
Note.-^Charters for Italy, France and
Spain read: “Lay days to commence on
steamer’s arrival at or off port of dis¬
charge. Is. per net register ton per day
demurrage.”
Montevideo . 34s. 3d.@34s. 9d.
Buenos Aires or La Plata . 34s. 6d. @3, 5s.
Rosario . 36s. @37s.
Rio . 3.5s. @36s.
Santos . 35s. @37s.
(Consignees paying docas dues)
Valparaiso or Callao . $6.25@6..50
Havana . 2.00@2..50
Cardenas or Sagua . $2.75@3.00
Cienfuegos . 2.75@3.2.5
Port of Spain, Trinidad, about . 3.50
St. Lucia . 3.25@3.50
St. Thomas, about . 3.00
Barbados, about . 3.50
Kingston . 2.75<ffi3.00
Curacao, about . 3.25 & p.c.
Santiago . 2.50@3.00
Guantanamo . 2.50@3.0()
Demerara . 4.25@4.50
Bermuda, about . 3.00
Vera Cruz . 3.25@3.75
Tampico . 3.25@3.75
To Limit Coal Prices.
An important bill has been introduced in
Parliament by a Mr. Runciman, to provide for
a limitation of coal prices.
The measure enacts that the coal at the
pit’s mouth shall not be sold or offered for
sale by the owner of the coal, or on his be¬
half, at a price exceeding by more than the
standard amount per ton the price of coal of
the same description sold in similar quantities
under similar conditions at the pit’s mouth
at the same coal mine on the corresponding
date, or as near thereto as, having regard to
the course of business, may be practicable, in
the twelve months ended June 30, 1914. It
is decreed that the standard amount shall be
4s, provided that the Board of Trade may by
order, if they are satisfied, as respected any
class of coal mines specified in the order, or
the coal mines in any district so specified, that,
owing to special circumstances affecting those
mines, the standard amount of 4s should be
increased, substitute for that amount such
higher sum as they may think just in the cir¬
cumstances. As respects those mines this act
shall have effect as if the higher sum so sub¬
stituted were the standard amount.
It is further enacted that if any person sells,
or offers for sale, any coal in contravention
of this action he shall be liable to a fine not
exceeding £100, or, at the discretion of the
court, to a fine not exceeding treble the
amount by which the sum paid, or payable,
for any coal sold by him in contravention of
this section exceeds the maximum sum, which
would have been paid, or payable, for the coal
if there had been no contravention.
This section shall apply to a case where the
owner of coal at the pit’s mouth has sold,
or offered to sell, that coal at a price which in¬
cludes the cost of railway or other incidental
services besides the actual value of the coal at
the pit’s mouth, as if he had sold, or offered
to sell it at the pit’s mouth at a price re¬
duced by an amount representing the cost of
those services.
Section 2 provides; —
(Ij If in any proceedings for the recovery
of a fine under this Act any question is raised
as the corresponding price of any coal, includ¬
ing any question as to the cost of railway or
other incidental services, the court shall refer
the question for determination by the Board
of Trade, and the decision of the board shall
be final and conclusive for all purposes.
(2) If for any reason there are not ade¬
quate data at any coal mine from which to
ascertain the corresponding price at the mine,
the Board of Trade may fix that price, having
regard to the data afforded from the sales of
coal at other mines.
(3) The Board of Trade may require the
owner of any coal mine to furnish such infor¬
mation as appears to them necessary for the
purpose of carrying into effect this Act. In
the event of the refusal of such information
he shall be liable on summary conviction to a
fine not exceeding £100.
Section 3 states: — This Act, to he known
as the Price of Coal (Limitation) Act, 1915,
shall not apply to any sale of coal for the
manufacture of patent fuel for export or to
any sale of coal to be used on any ship.
Further, this Act shall not apply to the sale of
coal supplied in pursuance of a contract made be¬
fore the commencement of this Act. The Act is
to have effect during the continuance of the
present war and a period of six months there¬
after.
New York Exports.
Considerable anthracite is exported from
New York tidewater ports, principally to the
Maritime Provinces.
Clearances for
June include the following:
Schooners.
Destination
Tonnage
F. E. Melanson .
. 214
Elizabeth Gilbert....
. 710
Elsie A. Bayles....
. 531
Lavalata .
. 321
A. J. Sterling .
Maria Cobb .
. 004
St. Bernard .
. 215
Percy O .
. 212
Scotia Queen .
. 218
W. L. Elkins .
. 341
H. H. Chamberlain.
.... Fredericton .
C. P. Harris .
Elma .
Glyndon .
. 180
Aloara .
Seth Jr .
S. B. HafTord .
. 601
Carrie E. Look .
. 780
American Team .
Crescent .
. 686
F. C. Pendleton....
.... St. John .
Minnie Slawson.. ..
. . . .St. Tohn .
Wm. D. Marvel. . . .
.... St. John .
M. V. B. Chase .
Seguin .
Jessie Ashley .
. 222
E. Liidlaw .
. 328
W. H. Davenport..
. 342
E. M. Brown .
. 597
Arthur M. Gibson...
S. S. Nepos .
Isaiah K. Stetson...
. 475
Palmetto .
. 190
Flo. Mader .
. 193
Bellivean .
.... New Carlisle .
. 397
Geo. B. Cluett .
L. P, Whitmore....
.... St. Tohn .
. 438
S. S. Siberia .
Tost .
. 350
S. S. Timandra. . . .
Frances Sawyer....
. 598
S. S. Matura .
May Exports and Comparisons.
The Department of Commerce and Labor
give the following statement of exports of bi¬
tuminous and antliracite coal:
-1914-
-May-
TONS.
-1915-
-1913-
-Eleven Montlus Ending May-
-1914-
-1915-
Anthracite-
Ouantity. Value. (.Quantity. Value. Quantity. Value. Quantity. Value. Quantity. Value.
Canada .
Uruguay .
Other countries.
469,441 $2
,524,181
412,479 $2,137,483
4,131,075 $21,936,325
3,469,646 $18,274,302
Si .55Q
3,209,000 $17,249,269
6,042
30,435
10,215
46,202
73,741
371,012
56,119
276,863
00,552
284,392
Total .
Bituminous^
Italy .
475,483 $2
,554,610
422,694 $2,183,685
28.5.027 845.870
4,204,816 $22,307,337
3,525,849 $18,551,724
3,329,552 $17, .533, 661
1 94.5 260 .3.724.408
Canada .
705,562 10,572,992
589,512
1,256,291
10,563,330
25,836,505
10,678,541
24,950,666
7,551,864
16,478,270
Panama .
22,150
59,805
34,321
93,869
443,240
1,196,448
336,617
910,602
295,664
808,588
Mexico .
20,951
89,285
30,247
132,235
406,249
1,136,658
280,526
962,445
369.165
1,616,242
('uba .
Other West Indies
82,851
231,042
107,650
297,228
1,167,681
3,136,986
1,048,379
2,914,352
990,222
2,781,770
and Bermuda.
50,824
153,120
34,471
102,827
550,055
1,.551,019
.532,108
1,560,854
413,486
1,262,727
Argentina .
11,078
34,852
108,730
322,930
129,432
371,.530
406,058
1,224,286
Brazil .
16,391
55,842
65,183
198,430
229,059
732,495
404,780
1,235,894
Other countries.
162,425
478,615
134,735
396,830
1,060,966
3,059,127
1,228,486
3,623,106
711,414
2,114,894
Uruguay .
11,.581
34,743
14,401
42,280
56,252
105,292
91,671
268,272
Total . 1,083,813 $2,710,296 1.404,277 .$3,688,790 14,191,530 $35,916,743 14,519,400 $36,191,348 12,479,585 $31,515,351
■Above figures d/i not include fuel or bumker coal laden on vessels engaged in the foreign trade, which aggregated
during the month a+id eleven months ending May as follows: May, 1914, 674,805 tons, valued at $2,212,285; May,
1915, 647,918 tons, valued at $2,161,317; eleven months. May, 1913, 6,666,494 tons, valued at $21,565,959; 1914, 7,124,-
527 tons, valued at $23,284,100; 1915, 6,334,773 tons, valued at $21,269,802.
94
THE BLACK DIAMOND
[July 4’
General Review.
Buying Improves Slightly in Domestic
Sizes, While Steam Shows a Pro¬
gressive Improvement.
The general market for coal is showing
some change in nearly all centers. The do¬
mestic demand is growing moderately be¬
cause the season of the year is approaching
when retailers know they must have some coal
on hand regardless of financial conditions and
regardless of any dilatory attitude of buyers.
The change in the domestic business is there¬
fore seasonal.
However, steam business is also improving,
due to a certain upturn in general business.
Pittsburgh reports are most encouraging be¬
cause they show that the mills are running
to full capacity or to what is done in boom
times. Foreign orders predominate, but home
business is growdng. The lake trade is pick¬
ing up a little. The eastern all-rail trade is
showing a decided improvement and export
trade is very promising. All of these things
make for a better tone in the steam market.
In the west domestic prices are advancing
and output is increasing.
In New York the anthracite market is not
improving much, because the retailers have
placed their storage coal and will not buy
until about the middle of August to satisfy
September needs. Some buying is expected
early in August, because the labor attitude is
threatening. In bituminous the movement into
export and on contract is still heavy and this
week brought some demand for spot coal which
is the best indication for some time.
New England indicates a demand at whole¬
sale for both bituminous and anthracite coal,
showing better buying both by steam users
and householders. .The anthracite trade is
helped no doubt by fear of labor troubles in
Pennsylvania.
Midsummer dullness seems to have attacked
the Pennsylvania trade, specially in bituminous,
although a large volume of export business is
being done, thus relieving the situation. The
anthracite operators have practically no mar¬
ket and are closing down the mines.
Baltimore records a loss to some extent in
the export business which while heavy is not
as brisk as it was some time ago. War orders
are increasing the production of factories and
this is improving the demand for coal on con¬
tract, but the spot demand is still light.
Shipments of anthracite coal by lake from
Buffalo were 79,630 tons for the last week, a
rather heavy decline compared with recent
shipments. The bituminous demand, espe¬
cially on contract, is better because concerns
in that territory are busy with war orders.
The general tone of the Pittsburgh market
has not changed much within the last week,
but evidences on all sides are that the market
is in first class condition. The mills are
running to full capacity, partly on war orders
and partly on orders for home consumption.
The activities among the coke ovens are such
as to indicate the presence of boom times.
Shipments to the lakes are increasing a little
all the while and the only weak spots in the
market have to do with the demand for coal
by local factories and retailers in the all rail
trade.
Cincinnati reports an improvement both in
demand and price. The individual buyers are
not taking much more coal, but an accumu¬
lation of small orders from many quarters
accounts for the better tone in the wholesale
market. This applies not only to the low
volatile coals but to the high volatile coals of
West Virginia.
Indiana operators, according to reports from
Indianapolis, are displaying a spirit of optim-
.ism, but it has to do more with future than
with current business. The market is still bad,
but the factories are taking more coal in the
center of the state. Some retailers are buying
for harvest needs.
Louisville has had a slightly better demand
for both domestic and steam coal within the
week. Retailers are buying in anticipation
of a price advance on August 1st. Steam
users are buying because they need the coal
to run the factories. '
Both Detroit and Toledo show a marked
improvement over recent conditions, first, be¬
cause the supply of spot coal is not so large
and, second, because consumption is heavier.
At Birmingham the Georgia Southern &
Florida railroad closed a contract for 1.50,000
tons of steam coal. The steel makers, which
own their own mines, have also been increas¬
ing production. Otherwise the market in that
territory is quiet.
The feature of the Chicago market is the
rising price of domestic coal on August 1st,
prices generally being marked up ten cents a
ton. Also smokeless coal will increase fifteen
cents a ton on August 1st and this brought
some heavier buying the latter part of this
month. The situation is generally Ijetter also
in steam coal, for while individuals are not
buying much more than they have been, small
orders have aggregated quite a tonnage.
At St. Louis hot weather has checked the
demand for domestic coal, but there is a fair
run of orders for steam coal. Screenings are
a trifle easier because of larger domestic pro¬
duction.
Omaha, after a slight improvement in de¬
mand, had a relapse the early part of this
week. The situation is generally pretty dull.
Storage orders in Denver are satisfactory in
the main and the market is dull with the ex¬
pectation that it will remain so until the first
of September.
Chicago Market.
Buying Continues to Improve and Prices
Will Advance on August 1st.
Office of The Black Diamond,
Chicago, July 29.
The coal market in Chicago is one of progres¬
sive improvement on a small scale. It took on a
little more activity the first of July ; it took on a
great deal more activity the latter part of the
month. In part the season of the year has some¬
thing to do with it. In major part the announce¬
ment of the rise in prices had a good deal to do
with it. The steam trade has not kept pace with
the domestic trade in every particular, although
that is improving too. Fine coal, however, is
easing off as lump advances.
Reports on the anthracite trade do not quite
agree in every particular. Some agencies had
quite a run of orders in July. Others say that
their business is far below normal. It is still
a fact that the business for July was below
what it was in other years and below what it
should have been to have brou.ght shipments for
.\ugust 1 up to a comfortable figure for the
retail trade. Prices have been steady because
production has been curtailed.
On August 1 smokeless mine run prices ad¬
vanced to $1.40, a rise of fifteen cents a ton.
Lump and egg prices advanced to $2.2.'), or a rise
in circular of twenty-five cents. Knowing that
these prices will hold, retailers bought more heav¬
ily the latter part of July than they have been
doing. They are still far short of their normal
storage supply. Production, while reasonably
heavy, has not congested the market with spot
coal, shipments to the east being heavy. The
technical position here is strong because no coal
is on consignment and few cars are even approach¬
ing demurrage. Prices up to Thursday, carrying
the July circular, were:
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.05 2.00
The Somerset county market is stronger today
than it has been all summer. Prices will advance
on the mine run to $1.40 on .August 1, but until
then the July circular price obtains and some buy¬
ing at the low price was done. Prices up to
Thursdav were :
F. p. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@3.95 1.70@1.U0
Hocking coal is unchanged in price, but the
Inisiness for the last week was a trifle heavier.
The market is firm because there has been no
free coal offered. Prices up to Thursday were:
F. p. B. F. O. B.
Hocking — Chicago. Mines.
IJ^-inch lump . $3.15 $1.50
Splint operators who all summer have been
flirting with the jobbers have begun to sell their
coal direct. They are thus making a first effort
to get rid of a demoralizing influence and the
market is strong in consequence. Some are
still holding their coal under the old conditions
and that makes for easier prices in spots. How¬
ever, the market is stronger. Prices up to Thurs¬
dav were :
F. p. B. F. O. B.
Kanawha — Chicago. Mines.
I'/i-inch lump . $3.05@3.15 $1.15@1.25
Eastern Kentucky coal is firmer, largely because
wage conditions in that territory are about
straightened out. The market was demoralized
somewhat by the fact that a few operators had
cut wages and were cutting prices accordingly.
That situation is now straightened out and the
market is strengthening. Prices up to Thurs¬
day were :
F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.15@3.65 $1.25@L75
Egg . 3.00@3.15 1.10@1.V5
Circulars were sent out this week announcing
new prices on Franklin county coal to take effect
.‘\ugust 2. Lump, egg and No. 1 nut will then
command $1.60; No. 2, or special stove will com¬
mand $1.40. In anticipation of these higher prices
which will prevail for the first two weeks in the
month, some active buying was done this last week.
The finer sizes naturally ran off a little as domes¬
tic production increased. This coal was selling
all the way from sixty-five to eighty-five cents,
according to quality, but a fair average for the
market would probably be about seventy-five cents.
Prices up to Thursday were :
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2-ineh screenings . .
F. 0. B.
F. p. B.
Chicago.
Mines.
$2.55
$1.50
2.55
1.50
2.55
1.50
2.40
1.35
2.15
1.10
1.80
.75
The majority operators in Williamson county
lield will in the next day or so put out circulars
announcing new prices for the first part of August.
.\ccording to one circular already issued, lump
and egg will sell for $1.60; No. 1 washed for
$1.65; No. 2 washed for $1.30; No. 1 dry screened
nut, $1.40. Fine coal prices have been a little
easier
because lump
production has
increased.
Prices
up to Thursday
were :
F. O. B.
F. O. B.
Williamson County —
Chicago.
Mines.
Lump
Egg . .
. $2.55
$1.50
1.50
. 2.55
No. 1
washed .
. 2.55
1.50
No. 2
washed .
. 2.45
1.40
Saline county operators pretty generally on
.\ugust 1 will advance lump, egg and nut price to
$1.60. In the meantime the circular price for
July of $1.50 has maintained and a lively business
was done. Screenings are a triffle soft, but the
market is still fairly good at seventy-five cents.
Prices up to Thursday
were :
F. 0. B.
F. O. B.
Saline County —
Chicago.
Mines.
Lump .
$1.50
Mine run .
. 2.15
1.10
Screenings .
. 1.80
.75
154-inch lump .
. 2.30
1.25
Springfield prices will not advance until Au¬
gust 15, when it is expected ten cents a ton will
be added to the circular on lump, egg and nut,
bringing the first two up to $1.60. In the mean¬
time prices recently quoted prevail, with a better
volume of business on the prepared sizes. Screen¬
ings are a little easier, ranging between sixty and
sixty-five cents. Prices up to Thursday were :
F. O. B.
F. O. B.
Springfield —
Chicago.
Mines.
Lump .
$1.50
Egg .
. 2.32
1.50
Nut .
. 2.17
1.35
Mine run .
. 1.87
1.05
Screenings .
. 1.47
.65
The Clinton,
Tnd., market is quotably un-
changed. Prices
up to Thursday were
F. O. B.
F. O. B.
Clinton —
. Chicago.
Mines.
Domestic lump....
. $2.27
$1.50
Egg .
. 2.07
1.80
Nut .
1.3»
Mine run .
. 1.87
1.10
Screenings .
. 1.47
.70
Knox countv has not changed within
the week
either as to production or price. The
as follows :
F. 0. B.
market is
F. O. B.
Knox County —
Chicago.
Mines.
Lump .
. $2.37
$1.50
Egg .
. 2.37
1.50
Mine run .
. 1.87
1.05
Screenings .
. 1.47
.62
Domestic coke
is a little stronger, but furnace
and foundry coke has not changed. Prices up to
Thursday were:
F. O. B.
Coke — Chicago.
Connellsville .
$4.76
Ry-product, foundry . 4.85@5.10
By-product, egg and stove . 4.65
By-product, nut . 4.65
jas house . 3.75@4.90
Ohio & Michigan Coal Company, Detroit, has
been awarded the contract for supplying approx¬
imately 3,500 tons of slack to the .Ann Arbor
waterworks and about the same amount of Poca¬
hontas coal to the University of Alichigan, which
withholds prices made by the various bidders.
No. 5]
THE BLACK DIAMOND
95
Pittsburgh Trade.
Factory and Retail Demand Is Light But
Mills, the Lakes and Exports
Take More Coal.
Office of The Bl.\ck Di.\moni),
l.*)()2 Oliver Building,
Pittsburgh, Pa., July 29.
The Pittsburgh market has shown little or no
activity the past week, and little is anticipated at
present. The trade seem to be taking advantage
of the almost complete stagnation of the coal
business, to get away to mountain and shore re¬
sorts, to “rest up” after the long strain of idle¬
ness of the past several months. Those who are
not “out of town” find the golf links quite a re¬
lief to their over-worked nervous systems. Un¬
certainty is still the feature of the coal market,
and prevents any perceptible increase in activity.
Buyers as a general thing prefer to pursue a con¬
servative policy, and only make purchases as
necessity demands, while producers are just as
cautious and are quoting no figures for any ex¬
tended delivery.
From a domestic view point matters are not as
bright as sellers could wish and many items in
the inventory of the situation suggest the main¬
taining of the cautious attitude, and while the
time is at hand for a general stocking up for in¬
dividual and industrial purposes — it is not being
done — nor are the railroads buying any far ahead
fuel supply, though the prices quoted today might
hold large inducements for such purchasers but
they are holding back, possibly for both a lack
of confidence and a lack of money. Many large
miscellaneous manufacturing plants, and the bulk
of the smaller industrial concerns are not doing
more than fifty per cent of normal, and their
purchases of coal can be graded about the same.
Lake shipping does not show any appreciable
increase, but looks somewhat more encouraging —
from the point of inquiry, and the inland jobbers
are only buying to fill orders, nothing for stock.
At the retail yards no disposition is being shown
to provide for the winter's fuel supply.
The following range of prices, ' although sub¬
ject to change daily, or in individual transactions,
about represents the market for deliveries in this
district during the third quarter.
Panhandle slack . $0.4.5@ .53
Voughiogheny steam slack . 55@ .60
Mine run . 1.00@1.10
screened . 1.20@1.25
5/4 screened . 1.30@1.35
A large broker, during the past week made in¬
quiry of several producers offering to take cer¬
tain coals over a period covering the remainder
of the year at figures slightly less than quoted
above, but bis offer in each case was turned down
the opinion being that it was simply put out as a
feeler to test the market.
These conditions and the uncertainty pending
war developments, keep mines down to an aver¬
age of about fifty per cent to sixty per cent of
capacity, and at some points less. Some suffering
is reported in certain mining localities, where the
work has not provided sufficient income to meet
necessities and pay rent.
The demand for coke holds up extremely well,
and in some cases expands. There is strong ten¬
dency toward higher prices hy some independent
producers, while others have not yet fully adopted
the higher level — much depends on the sellers
order books, and the nature of the business of¬
fered. Prices quoted by the steel-making pro¬
ducers are very firm — though it is said they have
no coke for sale, yet this helps the market and
operators are not anxious to quote for further
ahead than quarter by quarter, the pig iron out¬
look seeming to make the sliding scale more
interesting.
Coke market might be called strong at the following:
Prompt furnace . :iil.75
([ontract furnace, third quarter . 1.75
Contract furnace, second half . 2.00@2.25
Foundry prompt . 2.40@2.5n
Foundry contract . 2.23@2.60
At the office of one producer of best grade
foundry — it was reported they were out of the
market — at another the quotations averaged five
to ten cents above the figures here given. Oven
activity has slightly increased the past week, but
as yet no scarcity of labor has developed, as was
anticipated by some operators a month ago.
Merchant coke operators in the Connellsville
region are reported as doing considerable export
business, the Argentine Republic, and Italy hav¬
ing been buyers, and a Ibiiontown firm is reported
to have sold through a New York jobber 44,000
tons of coal for shipment to Spain.
Personal and News Items.
James H. Gallagher, treasurer of the Delmont
Gas Coal Company, is on a vacation trip through
Canada.
James G. Geegan, manager of the Clyde Coal
Company, is taking a much needed rest at Mt.
Clemens, Pa.
Mr. Taylor, president of the Pittsburgh & Erie
Coal Company of Erie, Pa., was a Pittsburgh
visitor this week.
John H. Jones, president of the Pittsburgh-
Buffalo Company, is spending the week in Cleve¬
land and other lake points.
11. S. Odbert, president of the Odbert Coal
Company of Cleveland, spent some days with the
Pittsburgh trade last week.
E. M. Gross, western manager of the Keystone
Coal Company, is on an extended pleasure trip
through Canada and the northwest.
Dr. Arnaud Rosenthal of Paris, is in Pitts¬
burgh this week conferring with Pittsburgh man¬
ufacturers, brokers and other business men re¬
lative to the purchase of materials and goods of
various kinds needed in the allied countries of
the European war zone. Among other items he
claims to want to buy 3,000,000 tons of bituminous
coal, though we do not locate any direct inquiry
having been made. He says his country needs
large quantities of coal and he may establish a
permanent head quarters in Pittsburgh to handle
coal and other products for export.
A movement is on foot among those who have
admired the late Dr.- Holmes and profited in so
many ways by his labors, to in some manner
fittingly commemorate his achievements. The
erection of a monument at his grave, a tablet
suitably inscribed, a memorial volume containing
his life, and works have been suggested, and the
matter is assuming form. Locally it will be
brought before the coal operators the coming
week, by the Secretary S. A. Taylor, but action
may be deferred as many are away from home at
this season, Mr. Taylor makes the suggestion that
in addition to either of the above, a substantial
fund for the family of Dr. Holmes be raised, in
appreciation of his devotion to his profession.
Louisville Market.
Louisville, Ky., July 29. — (Special Correspond¬
ence.) — Some betterment has been noted in the
demand for both domestic and steam coal during
the past week, principally due to the willingness
of dealers to order out coal for delivery during
the last week of the month, rather than run chance
of a price-advance on August 1. Nevertheless,
buyin.g is not of a strictly general character, nor
is the price situation sufficiently satisfactory to
lead to any high hopes as to business for several
weeks to come. Nevertheless, the month of July
has been distinctly better with coal producers in
this section than was June, and it may be ex¬
pected that August will show a slight improve¬
ment over July, unless some unforeseen influ¬
ences come into play.
Roth the country dealers and those in the larger
towns are taking more domestic coal, but the
movement is by no means anything like normal.
So far, the increased movement of domestic has
not resulted in any slaughtering of screenings,
and although same were slightly more plentiful,
they are not on demurrage in any large quan¬
tities.
Producers dependent on southern markets re¬
port that the demand for steam coal is exceed¬
ingly poor, and competition at cut-prices is still
exceedingly keen. Contracts are being renewed at
price-concessions on the best grades of steam
coal, and shippers from mines on the Louisville
& Nashville & Southern Railways are still losing
business through mines in Virginia and Alabama.
The Southern Railway is now taking in eastern
Kentucky a minimum shipment specified in its
contract with Middlesboro and other operators,
whereas 30 to (K) days ago they were receiving
less than their contract minimum. Receipts by
the Louisville & Nashville and Illinois Central
Railroads are about as they have been during
recent weeks.
Prices for August will cover the same wide
range as during the past several months. Do¬
mestic block coal is selling at prices ranging
from $1.40, and occasionally as low' as $1.2.'), all
the way to $2.00 per ton, with the mines selling
at the lower iirices, in general running more days
tlian those in the Jellico district, which arc hold¬
ing their prices more stiffly. Nut and slack coal
of the best (piality is bringing from fifty cents to
sixty-five cents per ton, and second grade screen¬
ings frorn twenty-five cents to forty cents per ton.
The mines of the Continental Coal Corporation
in the Straight Creek district have been union¬
ized during the past week, and union organizers
are very busily engaged in an attempt to organize
other companies in the Bell and Harlan county
districts. So far, however, there has been no
disorder and little, if any, ill-feeling.
Detroit Trade.
Detroit, Mich, July 29. — (Special Correspond¬
ence.) — Improvement in mild form appears to
be developing in the local market. While condi¬
tions have not yet reached a point where the mar¬
ket may be correctly described as active, ship¬
pers assert they are able to notice a perceptible
increase in the number of small orders coming in.
This feature, they regard as particularly en¬
couraging following the long period during which
the market has been so inactive as to be almost
stagnant and the sentiment of shippers is tak¬
ing a more buoyant and cheerful trend.
The fact that the amount of consignment coal
now being sent into Detroit is less than for many
months, is another feature which tends to in¬
crease cheerfulness. There is still coal on tracks,
however, and probably always will be in Detroit,
but it is being moved in a way that produces less
unsettledness in the market than heretofore, h'or
the time being, about the only coal which does
not reflect the improved conditions is the egg
size and under normal conditions Detroit is not a
large consumer of that class of stock.
The supply of all kinds of coal, with the ex¬
ception, perhaps of Pocahontas lump, is fully
sufficient for all requirements and there is little
difficulty in obtaining coal somewhat below sched¬
ule, at prices that have prevailed for several
months past, but the feeling among shippers,
appears to be that a gradual hardening and steady¬
ing of prices may be expected to develop in the
very near future.
The fact that shipments by the lake route to
ports on Lake Superior have been largely cur¬
tailed during the present month because of the
lack of dock space available for storage, is a
circumstance, which may, however, exert a trou¬
blesome effect on the Detroit market, should it
result in directing here coal which should he
handled over the rail lake route.
The outlook for early improvement of con¬
ditions at the unloading docks on Lake Superior
is said to be far from satisfactory and no im-
])ortant distribution of the stock now filling the
docks is expected until the movement of grain
to the lakes gains considerable headway, or prob¬
ably not until some time in September.
Anthracite is being bought very sparingly. Ef¬
forts to convince retail dealers that it is likely
to be to their advantage to place orders now,
have met with little success. Nearly all of them
appear to be holding off, though the reason is not
wholly clear.
Prices in the local market are as follows :
F.O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
$2.:15@2.40
Mine run .
_ .80
2.20
Slack .
_ .50
1.00
West Virginia Splint—
Four-inch lump .
2.90@3.00
Two-inch lump .
_ 1.25
2.65
Three-quarter .
_ l.IO
2.50
Mine run .
. 9()@1.00
2.30@2.40
Nut, pea and slack .
1.90@2.15
Smokeless —
Lump am! egg .
_ 2.00
3.60
Nut .
_ 1.50
3.10
vSlack .
Open
Mine run .
Open
Kentucky Splint —
I.ump .
. . . . 1.40@1.50
2.80@2.90
Kgg .
. . . . 1.10
2.50
Nut, pea and slack .
Open
Fairmount —
Tliree-quarter steam lump. . . .
. S5@ .05
2.25@2.3r>
Mine run .
2.10@2.20
Slack .
Open
Hocking Valley —
■Shaker three-inch lump .
_ 1.50
2.65
Shaker egg and nut .
_ 1.15
2.30
Domestic lump .
_ 1..S5
2.50
Three-quarter lump .
_ I.25@1.30
2.40@2.45
Mine run .
. . . . 1.00@I.l0
2.15@2.25
Nut, pea and slack .
Open
Fittsburgh No. 8 —
'I'hree-quarter lump .
_ 1.15
2.30
Mine run .
_ 1.05
2.20
Slack .
Open
lackson Hill
Domestic lumi) .
_ 2.50
3.65
('amhridge —
Three-quarter lump .
_ 1.20
2.35
Mine run .
_ 1.10
2.25
Pomeroy —
Two and three-incli lumj)....
_ 2.15
3.30
Fgg .
_ 1.60
2.75
Slack .
Open
96
THE BLACK DIAMOND
[July 31
Cincinnati Trade.
Cincinnati Ohio, July 29. — (Special Corre¬
spondence.) — The market in this territory tliis
week, is a little better, both in price and in
demand. In particular it would he hard to
point out just where the betterment is.
Some operations take a “bullish” view of
conditions and others are still “bearish.” All
unite, however, in saying that it is only a
matter of a few days until “something will
drop.” At present wholesalers are sweating
in an effort to wake up dealers to the fact
that a car stringency, labor scarcity and trans¬
portation blockade are casting their shadows
before.
Some com])anies have withdrawn their prod¬
uct from the market. They will not enter the
trade which is controlled by jobbers intent
on getting only their brokerage. The splint
operators are especially strong on this point.
The price list is variegated. For West
Virginia splint lump quotations range from
ninety cents to .$1.75; three-inch lump gen¬
erally around $1.50; IJ/^-inch around $1.25 and
nut and slack fifty to seventy-five cents.
Some prices in all grades have been made.
Several companies who have been attempting
to meet competition, Wednesday withdrew all
their price lists and notified their patrons that
they are out of the market until buyers show
a better appreciation of the value of coal.
This has created a sensation among the pa¬
trons, but it has not aided the market yet.
The tidewater situation is unchanged for the
smokeless exporting companies. For some of
the better splint operations it is a godsend.
The lake movement has again brightened up.
Coal companies here have learned that a large
number of dealers in other cities of the state
and adjoining states have taken their sales¬
men off the road, and it is likely that some
of those here will follow the example. This
is not for the purpose of closing down for
these companies have contracts that will take a
fair supply of coal, but for the purpose of
stopping the mischievous operation of some of
the jobbers.
Car shortage is pronounced now, and labor
shortage is in the immediate future. Contract
making is fair, but at lower prices with those
who feel that they must contract. Notwith¬
standing all this, some of the big mines in
West Virginia and Kentucky are working full
capacity and marketing their products with¬
out much trouble, and no loss.
Cincinnati Trade News.
The Bell Coal Mining Company of this city,
which has had offices in the Lyric Theater
building, has removed to office^ in the Union
Trust building.
The Borderland Coal Sales Company, has
removed from suite ()27-r>28 in the Union Trust
building to suite 703-704-705, larger and more
comfortable quarters.
L. C. Tippett, general manager of the M-B
Coal & Coke Company, Kimberly, W. Va., was
a visitor in -the city this week. Other visitors
were H. S. Leonard of the Leonard Coal &
Supply Company, Dayton, O., and W. E.
Hassey, a well known coal man of Colum¬
bus, Ohio.
R. D. Jeffers, who recently resigned as
sales manager of the Borderland Coal Sales
Company, is now holding a similar position
with the I.itz-Smith Fuel Company of Hunt¬
ington, W. Va. Mr. Jeffers is well known to
the coal trade, having been connected with
the Producers Coal Company of the city for
several years until about a year ago.
G. E. Weber, Cincinnati manager of the
Chesapeake & Ohio Coal & Coke Company, is
home this week from a prolonged tour through
the Michigan coal distributing centers. He
finds that the dealers there are not taking ad¬
vantage of the low prices of the past few
weeks and, in fact, are not taking their usual
quota of the tonnages of the mining districts,
preferring to wait until later and take chances.
E. F. Hcasley, private secretary to Quin
Morton, president of the Imperial Coal Com¬
pany of Charleston, W. Va., and of the Im¬
perial Coal Sales Company of this city, has
been appointed assistant secretary of the West
Virginia High Volatile Coal Operators’ As¬
sociation. This organization, composed of the
operators along the C. & O. and the K. & M.
railways, and which will eventually take in all
the high volatile operators in the state, it is
believed, is organized for the purpose of aid¬
ing in suppressing ruinous competition and
stimulating legitimate competition between
coal districts and Inining operations. Last
week J. W. Dawson was elected chairman of
the executive committee of the organization
and J. R. Thomas and P. F. Colgan, vice-chair¬
men. An executive secretary is sought to take
char,ge of the operations of the organization,
and until one is found Mr. Heasley will have
charge of the new offices which were established
this week in Charleston.
The Norwood city contract for coal was
awarded this week to the low bidder. Eureka
Coal Company of that suliurb. The contract
called for 5,000 tons of 14,900 B. T. U. 7 per
cent ash, splint nut and slack, and 2,000 tons
of 15,300 B. T. U., G per cent, ash smokeless
mine run. Ten companies, among them the
largest retail companies in Cincinnati, filed
bids and the gratifying thing was that the
bids except one or twq_ showed a determina¬
tion to hold up prices to a living basis. It is
not understood exactly what the award price
was.
Tom R. Morgan, formerly sales manager
of the Pluto Cannel Coal Company of I.ex-
ington, Ky., resigned that position, to take
effect August 1st, and was at once appointed
assistant to President L. P. Yandell of the
company, and retains his headquarters at Lex¬
ington. Mr. Yandell’s home is in Danville, Ky.
A new sales manager will be appointed and
the offices will be moved to Cannel City, Ky.,
at the mines. Later Mr. Morgan’s appoint¬
ment was withdrawn.
Cincinnati people have been asked to aid
the starving miners of the Hocking Valley
(Ohio), who are out of employment and can¬
not leave for other points just now to obtain
emplovment. The St. Vincent de Paul Society,
a Catholic organization, promptly sent $100
cash and opened a depot for clothing in the
city to aid the sufferers. Other organizations,
notably the Chamber of Commerce and civic
societies are aiding in the plan which was
started by Governor Willis.
A story is going the rounds here, and has
been published in some of the West Virginia
papers, to the effect that The Island Creek
Coal Company, has obtained an option on the
Main Island Creek properties of the Wyatt
Coal Company. It is further said, that an ex¬
tension of that option has been made to August
10th, at which time, it is explained, the Island
Creek Company will take over these proper¬
ties. It is said that John Laing, president of
the Wyatt Company has been prevailed on
to sell these e.xcellent properties which adjoin
the Island Creek holdings, and that the per¬
suasion has been in the form of a very sub¬
stantial profit on the coveted properties. It
is understood that the Island Creek Company
was losing business in direct competition with
the Main Island Creek coal. However, this
may be, it is given on good authority that a
$20,000 forfeit has been posted for the nur-
chase of the properties, August 10th. The.
story was denied, at first, by officials of the
company here on general principles, but com¬
munication has not been held with Mr. Laing
in reference to it.
St. Louis Trade.
St. Louis, Mo., July 39. — (Special Corre¬
spondence.) — The fact that the weather has been
seasonable has somewhat checked the demand,
which was getting to be quite lively from a num¬
ber of sources. Coal dealers began to think of
hauling ice, when the weather turned, and lost
some of their enthusiasm for coal. The fact
that the end of the month is nearin.g and the
coal will advance in price the first of August
has stimulated sales on some of the higher
grades of anthracite.
Standard coal has been hard to move, es¬
pecially in the 2-inch lump and steam sizes,
showing a tendency to drop. Six-inch lump
and domestic show a slight improvement. The
current prices are as follows:
Mine
fi-inch lump . $1.00
3x0 egg . 1.00
2-inch lump . 8.5
2x6 egg . so
No. 2 nut . 80
];4-inch screenings . 00
St. Louis
$1.5714
1.5714
1.4214
1.3714
1.3714
1.1714
There is absolutely no change in the demand
or prices on Mt. Olive and Staunton coal.
6-inch Imup . $1.25 $1.8214
2-inch lump . 1.20 1.7714
2-inch screenings . 70 1.2714
Carterville moving somewhat better. Wil¬
liamson county operators on the whole are
advancing their prices on domestic sizes and
most of the snaps are now off the market.
6-inch lump . $1.35 $2.0714
6x3 egg . 1.35 2.0714
3x2 nut . 1.20 1.0214
114-inch screenings . 70 1.4214
Franklin county is moving very satisfactorily.
Lump and egg business coming in freely,
though some steam sizes are lagging such as
No. 3 and No. 4.
O-inch lump . $1.50 $2.2214
6x3 egg . 1.50 2.2214
3x2 nut . 1.50 2.2214
.Stove . 1.35 2.0714
ll4-inch screenings . 80 1.5214
Anthracite has been moving slowly. There
is considerable consternation in the coal trade
over the advance of 25c in the rates to St.
Louis, and this advance took every one by
surprise. None of the large companies have
issued their new circulars, as yet, and there is
considerable speculation, as to just what will
be done in regard to the matter.
Chestnut . $7.35
Stove or egg . 7.10
Grate . 6.85
There is litle change on smokeless, or coke,
both are moving fairly well. The price on
coke, however, advances on the first of the
month.
Gas house coke, all sizes . $4.00
By-product coke, all sizes . 4.25
Smokeless lump or egg . 4.50
Smithing . 4.25
Note. — Prices on Illinois soft coal, f. o. b.,
East St. Louis, Madison or Granite City, Ill.,
are 25j/^ cents cheaper than the above named
rates to St. Louis, Mo.
J. Howard Seymour, of the Philadelphia &
Reading Coal & Iron Company, was in St.
Louis on Wednesday.
Denver Trade.
Denver, July 29. — (Special Correspondence.) —
The market here this week seems to have
lapsed into summer dullness, and is only re¬
lieved by better bookings on storage with the
near approach of the begging of the last stor¬
age option.
There is little doing in the lignite district.
Most of those mines are closed this week, but
advantage is being taken of the dull season in
making extensive improvements and repairs
before the winter rush.
Trinidad operators report a busy week, on
the receipt of steadily arriving storage orders,
filling of regular contracts and unusual re¬
quirements of the steel mills. The bulk of the
storage orders, however, are going to Routt
county. They are many days behind on the
filling of these orders.
Walsenburg will produce about fifty per
cent of normal tonnage for the week.
Slack prices are unchanged. Routt county
is making up for the small supply of lignite.
There is plenty of bituminous but no surplus.
The prices for lignite, f. o. b. mines are as
follows: For Denver delivery, lump, $2.35 to
$2,65; mine run, $1.50 to $1.65; slack, $1.05 to
$1.25. To points outside of Denver, lump,
$2.50; mine run, $1.55 to $1.65; slack, $1.05.
Canon City District — Lump
For shipment May and June . $2.50
For shipment July and August . 2.76
Add 26 cents to above prices for washed nut.
Walsenburg District —
For shipment May and June . 2.60
For shipment July and August . 2.75
Washed nut 25 cents per ton additional.
Chestnut, $1.25 for entire season.
Trinidad District —
For shipment May and June . 2.00
For shipment July and August . 2.00
Routt County District —
For shipment May and June . 2.60
For shipment July and August . 2.75
Western Slope District —
For shipment May and June . 2.25
For shipment July and August . 2.60
From Baldwin, shipments for points east of
are 75 cents per ton less than Walsenburg prices.
Nut
$2.00
2.25
2.00
2.26
1.71
1.7$
2.01
2.21
Denvcl
Denver Local News.
A fire at Rock Springs, Wyoming, last week,
destroyed the tipple and power plant at the Cen¬
tral Coal & Coke Company’s No. 2 mine. The
loss exceeds $50,000.
A further reduction in coal rates from Lud¬
low to Trinidad is asked by the Huerfano Coal
Company, regardless of a reduction recently by
the state public utilities commission from sixty-
five cents to sixty cents a ton. The Huerfano
Coal Company has filed a petition with the com¬
mission asking that body to reopen its investiga¬
tion of coal rates charged by the railroads, so far
as it relates to the tariff between Ludlow and
Trinidad. It believes these rates should be low¬
ered to approximately twenty-five cents per ton.
No. 5]
THE BLACK DIAMOND
97
Indianapolis Trade.
Indianapolis, Ind., July 29. — {Special Corre¬
spondence.) — Much of the optimism displayed by
Indiana operators and coal dealers is of a forced
nature. They have been whistling to keep up
their courage and spirits while they know that
business is bad. Many of them have been try¬
ing to put on a cheerful face and tell their
neighbors and friends that business was first rate
when they know better.
A well-known Indiana operator said today that
he is about at the point where he has concluded
that it doesn’t pay to attempt to deceive himself
further. He declared that the demand for steam
coal is very weak ; that the demand for domestic
is below normal even for this time of the year
and that the outlook for business during the
next few weeks is not very bright. The demand
for Indiana coal in the Chicago markets has not
been up to the usual standard lately. The manu¬
facturing centers around Chicago that are large
consumers of Indiana coal have been cutting
down their orders. There have been fewer in¬
quiries than usual for coal for the northwestern
markets. The state’s big manufacturing centers
are not buying fuel heavily.
.A.ltogether the situation is not encouraging.
There has been a disposition among operators
and dealers to say that the long-delayed business
revival was only a few weeks off. About three
months ago some of the leading Indiana oper¬
ators said that by August a general revival would
be noticeable. They have failed as prophets.
The tonnage in July probably will be less than it
has been for any July in recent years. Prices are
fairly steady. Screenings showed a disposition
to break but they are about steady again. The
prices on mine-run, egg and nut are about the
same as they have been for several months. Do¬
mestic is not changed. Operators say that the
dealers are not buying as much as usual for this
time of year, which is a very discouraging feature.
There is not as much coal as usual in storage
in the retail yards, which helps matters when the
demand does come from the consumers. The
dealers in smokeless and hard coal are finding
business very dull. In fact, the shipment of coal
into Indiana is below the JuJy mark. The retailers
are not doing as well as they were at this time
in 1914.
The Indiana wholesalers are quoting the fol¬
lowing prices :
F. O. B. F. O. B.
Indiana — Mines. Indianapolis.
No. 4 mine run . $1.10@1.20 $1.GO@1.80
Nos. 5 and G mine run . 1.00@I.]0 1.50@1.G0
No. 1^-inch steam lump . 1.30@1.40 1.80@1.90
Nos. 5 and G steam lump.... 1.20@1.30 1.70@1.80
No. 4 egg . 1.30@1.40 1.80@1.90
No. 4 nut . 1.30@1.40 1.80@1.90
No. 5 egg . 1.20@1.30 1.70@1.80
No. 4 screenings . 80@ .85 1.30@1.35
Nos. 5 and 6 screenings . 70@ .75 1.20@1.25
Domestic lump . 1.40@1.50 1.90@2.00
No. 1 washed coal . 1.75 2.25
No. 2 washed coal . 1.65 2.15
Brazil block domestic . 2.00@2.10 2.50@2.G0
Southern Indiana Field —
No. 5 mine run . 1.00(3)1.05 .
Domestic . 1.40(3)1.50 .
Toledo Market.
Toledo, Ohio, July 29. — (Special Correspond¬
ence). — The situation here is showing marked
improvement and coal men are in a better
frame of mind than they have been for months
past. The betterment is due to an improved
demand and the many inquiries which have
been coming into the Toledo market for the
past week or two, from both steam and do¬
mestic users. Local coal men have waited so
long for a betterment that they had almost
given up hope so that the present good out¬
look is all the more appreciated. Coal gen¬
erally is showing a little stiffening as to prices
and an improved demand if kept up will make
the usual August increase something more than
a formality. There is a noticeable stiffening
up as regards fine coal, due it is thought, to the
rather light lake shipments.
Pocahontas nut and egg coal is in strong de¬
mand and the supply is commencing to ease
up a little. Pocahontas has been very scarce
in the prepared sizes throughout the season,
and it has been next to impossible to fill
orders. It is believed that this condition will
be alleviated within a few weeks at the latest.
In the meantime the full list price is being
maintained on this grade of coal. Other
smokeless coal is easy to secure and shows a
trifle more weakness. Prices remain un¬
changed.
F. O. B. F. O. B.
Smokeless — Toledo Mines
Lump and egg . $3.45 $2.00
Mine run . 2.70 1.25
The extremely wet weather of the past few
weeks has greatly delayed the threshing sea¬
son in this section, and this has kept the de¬
mand for threshing coal at a minimum. An
improvement is expected the first of next
month. This will probably give Hocking some
impetus as it is heavily used throughout this
section for threshing purposes. Hocking is
now in very light demand, but prices are be¬
ing well maintained.
F, O. B.
F. 0. B
Hocking —
Toledo
Mines
3-inch lump .
1.50
154 -inch lump ...
1.40
54-inch lump ....
1.30
Egg .
1.25
Nut .
1.15
Mine run .
1.10
Massillon is
moving very slightly
at weak
prices.
F. O. B.
F. O. B.
Massillon—
Toledo
Mines
Lump .
. $3.25
$2.50
Washed nut .
2.50
Pomeroy continues slow and prices rather
weak. With an improved general demand for
domestic coal Pomeroy will probably show a
general improvement.
F. O. B. F. O. B.
Pomeroy — Toledo Mines
Domestic . $2.60 $1.60
Egg and nut . 2.35 1.35
West Virginia coal, like all other fuel prod¬
ucts, is moving slowly. Still there is a bet¬
ter tone to inquiries than for 30 days or
more. There continues to be considerable
West Virginia coal
going up the lakes.
Prices
remain unchanged.
Kanawha Gas —
^-inch lump .
1.05
Mine run .
.95
Fairmont —
154-inch lump .
1.05
54-inch lump .
. 2.20
.95
Mine run .
. 2.10
.85
Kanawha Splint —
F. O. B.
Toledo
F. O. B.
Mines
4-inch lump .
. $2.75
$1.50
f*inch lump .
1.40
^-inch lump .
1.15
Mine run .
. 2.25
1.00
Pittsburgh No. 8 is still slow as to demand
and short as to prices. With the railroads
beginning to buy an improvement is likely to
be noticed in this grade of coal, as it has al¬
ways been a strong railroad coal.
Pittsburgh No. 8 —
154-inch lump . 2.40 1.40
54-inch lump . 2.20 1.20
Mine run . 2.10 1.10
Youghiogheny remains unchanged as to price
and demand. There is but little movement.
Y oughiogheny —
Mine run .
54-inch steam lump .
Blossburg Smithing —
Prepared size .
Lilly smithing, prepared size
1.20
2.56
1.30
3.20
1.75
3.20
1.75
Kentucky coal is showing more firmness as
to price, and there are better inquiries. Thresh¬
ing coal will make an improvement as soon
as the demand opens up.
F. O. B. F. O. B.
Kentucky — Toledo Mines
4-inch lump . $2.90 $1.05
Egg . 2.50 1.25
Nut, pea and slack . open open
Cambridge being a strictly steam product
is enjoying the same quietude as other steam
coal. It is believed that a better demand will
follow the first of the month.
F. O. B. F. O. B.
Cambridge — Toledo Mines
Mine run . $2.10 $1.10
54-inch lump . 2.20 1.20
154-inch lump . 2.40 1.40
Cannel is showing considerable strength at
this time, especially as to demand. Prices
are running close to the list.
Cannel — .
Kentucky Cannel lump . $4.60 $2.75
Pennsylvania Cannel, egg . 3.00 2.15
Pennsylvania Cannel, lump . 4.20 2.75
Ohio Cannel . 3.85 3.00
.'\u.gust 10th, is the date set for the picnic
to be given at Sugar Island by the Toledo
coal men, who with their families will make
the trip on the steamer “Creyhound.” Sjiecial
attention is being given to .tbe program and
a delightful time is anticipated. The Detroit
dealers with their families will join the To¬
ledoans in the good time, the same as they
did last season.
Birmingham Trade.
Birmingh.\m, Ala., July 29. — (Special Corre¬
spondence.) — With the exception of two large
iron producing companies, the coal trade still
remains dull. The big mines of the Tennessee
Company at Edgewater, Bayview, Docena and
elsewhere are producing large quantities of
coal, the same is true of the Sloss-Sheffield
Company with mines at Dora, Drifton, Flat
Top, Bessie and elsewhere in the western part
of the district which are in full operation.
This company has received some of the larger
contracts for steam coal recently left. Last
week a deal for 150,000 tons was made with
the Georgia Southern & Florida Railroad.
Most of the other companies producing steam,
coal are complaining of slack business, but
notwithstanding the general dullness felt at
this time of the year and the general expres¬
sion indulged in, there is without doubt somje
general improvement to be noted, as more men
are now at work in mines than for some time
past. Efforts are being miade in every direc¬
tion to extend Alabamla’s coal trade. Such
efforts are expected to bring results and Mr.
James Bonnyman, a well known coal operator,
says: “The coal business is still quiet but I
expect to see it very brisk in the next three
months.”
Bunker trade toward the gulf is limited in
tonnage, while domestic coal trade is almost
at a standstill. Blacksmith coal trade is hold¬
ing its own with a fair trade.
Coke operations are good, and there is a
larger production right now. The statistics for
the year promise to show an increase in 1915
as compared to the production in 1914, and
not only will coke figure in the output column
but the several by-products. The big by¬
product coke oven plants at Ensley, F’airfield
and Woodward have had a most wholesome
effect on the coke situation and the annual
output is now looked forward to with interest.
There is not the least hesitation at either
of these plants, to the contrary the largest
possible output is being sought right along.
The following is price of coal though it varies
some :
F. (). B. F. O. B.
Jefferson County — Mine B’ham
Pratt Fancy Steam Lump . $1.70 $2.10
Furnished by T. C. I.
Pratt Mine Bun, 90c to $1.15. Frt. rate, 30c.
Jefferson Seam, steam coal, $1.15 to $1.25. Frt.
rate, 30c.
Black Creek, steam, $1.25 to $1.55.
Walker County —
Horse Creek, steam mine run, GOc to $1.00. Frt.
rate, 40c.
Carbon Hill, lump domestic, $1.00 to $2.00.
Most all coals based on this classification.
No stable prices, but these serve as basis
from which prices vary either up or down.
Blacksmith coal washed and screened; per
ton $2.00 to $2.25 at niiines with different rates
to various points.
Birmingham Trade Notes.
Semi-annual examinations for certificates as
first and second class mine foremen and for
fire bosses began Monday witli thirty-seven
men composing the classes. C. H. Nesbitt,
chief state mine inspector, is in charge.
The annual meeting of the American Mine
Safety Association will bring to Birmingham
September 2, 3 and 4, some of the most promi¬
nent men interested in the object of safety in
mining work. The executive sessions of the
American Mine Safety Association will be
held Saturday, September 4, while the two
days preceding will be given over to the demi-
onstrations, either at mines or on a field in
a convenient locality. The United States Bu¬
reau of Mines will take a most prominent part
not only in the meeting of the association, Imt
in the demonstrations. While the program for
the great gatliering has not been gone over
as yet, it is being outlined. The winning team
will be given a trip to San Francisco in Sep¬
tember, where the national mine safety meet
will be held. The meeting of the .American
Mine Safety Association will be held in the
big dining room of the Hillman Hotel. It is
announced that coal mining companies in Illi¬
nois and another in West Virginia will send
teamis to the Birmingham meet. The repre¬
sentative of the United States Bureau of Mines,
E. B. Sutton, engineer in charge, is conferring
will coal operators of the Birmingham district.
A tentative program for the great gathering-
will be announced in a few weeks.
98
New York Trade.
Anthracite Producers Store Surplus Pro¬
duction — Bituminous Tone
Better.
Office of The Black Diamond,
New \'oi'iK, July 29.
The summer dullness in the anthracite
trade which set in early in June, continues
practically without change. It is rather dif¬
ficult to find any improvement in demand
from any part of the anthracite consuming
territory. Some coal continues to go for¬
ward on what are termed regular contracts, and
those companies that have distributing stations
in the various anthracite consuming centers,
where they can store considerable coal, are
loading these to maximum capacity to take
care of surplus production. Notwithstanding
this, and the short time mining, about three
days per week being the average schedule now,
considerable coal is being put in the storage
pile near points of production.
Usually towards the latter part of July, there
is some improvement in buying from those
dealers who want to take advantage of the
twenty cents per ton discount that prevails this
month. This year, there has been practically
no increase in demand noticed from dealers
who are concerned about the discounts. This
situation has been held largely due to the fact
that so much individual coal has been offered
this season, at practically the April discount,
that such a small reduction as twenty cents per
ton does not longer interest the buyer. More¬
over, this year finds more difference than ever
before on the part of the consumer to take
coal on during the summer months to obtain
discounts. Retail dealers are finding con¬
sumers very indifferent about taking on sup¬
plies, so that we now have only one more
summer month to go through summer, and if
reports that come from the retail trade are to
be taken seriously, less coal has been stored
by consumers this season than heretofore.
This should mean a good demand for coal
during the fall and winter months, and should
insure that the retailers will be very busy with
deliveries, commencing som'e time in Septem¬
ber.
In the way of production, all of the pro¬
ducers are working now on a three-day per
week schedule. Even on this short time
schedule, production is consideralily ahead of
demand, and it is taxing the capacities of some
of the producers to store their surplus. Those
producers who have no storage plants, and
no yards at large consumptive points to take
care of surplus coals, are forced to ship their
surplus into the open markets, and conse¬
quently a great deal of coal is held at New
York tidewater ports for spot sale. This means
that prices on these unsold sizes are subject
to discounts of twenty to forty cents per ton.
Buckwheat coals at tidewater do not seem
to be so plentiful, but prices are not im¬
proved, some very low prices have been named
recently upon contracts for these coals.
The anthracite operators are now becoming
concerned over the very threatening attitude
of labor, and no doubt they are going to face
on April 1, the most serious fight they
have had since 1902, with the Mine Workers
organization.
The Bituminous Trade.
The bituminous trade is better in spots.
Some interests report more spot inquiry dur¬
ing the past week, and some sales, though not
of large volume. The improvement in spot
demand comes from those manufacturing in¬
terests that are not protected by contracts,
and who buy largely on the “hand-to-mouth”
basis, or only when they need it.
This year, there are many such consumers.
Most of them have hesitated about placing
regular contracts because of the abundance —
at all times, and most of the time, at prices
in the buyer’s favor — of coal that salesmen
have been offering them. Just how much
longer the situation is going to continue to
favor consumers of this class, one does not
know, but evidences seem to be piling up that
the situation may soon change, and that the
unprotected consumers are going to find prices
stiffening.
An instance came to hand on Monday where
a large Pennsylvania manufacturer had to close
his plant, due to a shortage of coal. The plant
was situated so close to the mines, that they
THE BLACK DIAMOND
,.a. . -
[July 31
figured that coal would never run short. There¬
fore, they ordered very sparingly, and a delay
on the railroad in making deliveries, caught
them short.
There are indications that production in the
Pennsylvania fields is improving. This im¬
provement is confined principally to the large
producers who are needing coal for contract
requirements. Some of the smaller producers,
with the small contract needs are said to have
many loaded cars on railroad sidings at the
mines, for which they are seeking purchasers.
This means that spot prices are still held low
due to a surplus of coal.
Export loadings last week were lighter than
they have been in many weeks. However, this
lull is believed to be only temporary. Bunker
requirements continue large.
At New York harbor ports, there are ample
supplies of all J|Kides of Pennsylvania and
West Virginia coals usually sold in this mar¬
ket. Prices range from .$2.50 to $2.60 for good
grades of Pennsylvania, choice grades com¬
manding ten to fifteen cents more. West Vir¬
ginia prices range down to $2.85.
The Vessel Situation.
Coastwise vessel rates are just about easy at
former quotations. The bulk of the tonnage
is moving on time charters, and so far there
has been very little change in the demand for
spot charters. It is not believed that there is
much available open tonnage, and that a rad¬
ical improvement in the coal trade will find a
serious shortage. A great numlier of schooners
are still engaged in the export trades.
Off shore rates are about unchanged.
We quote current rates on freight as fol¬
lows;
P'rom Hampton Roads to Boston, seventy-
five to eighty-five cents; to the Sound, seventy
to eighty cents.
P'rom New York rates to New Haven are
thirty cents. New London, forty cents, and
Providence and New Bedford, fifty cents; to
Boston, fifty-five to seventy cents; Portsmouth
and Portland, fifty-five to seventy cents; to
Bangor, seventy cents. Harbor rates are from
eighteen to twenty cents.
Prices on gross tons of bituminous coals are:
Somerset County —
F. O. B.
Harbor.
F. O. B.
Mines.
Best grades .
Medium grades .
Ordinary .
. $2.85
. 2.60
. 2.55
$1.25
1.10
1.00
Cambria County —
Best Miller vein .
Cheaper grades .
. 3.00
1.40
1.05
Clearfield County —
Best grade .
Ordinary grades .
. 3.00
. 2.50
1.35
.95
Indiana County —
Best grade .
Medium grade .
. 2.80
. 2.50
1.26
.90
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
Best gas, 44 inch lump .
Best grade, run of mine .
(ias slack .
. 2.40
. 2. 65
.75
1.10
.90
.50@ .70
New York Trade Briefs.
A. Sidney Davison, of the A. Sidney Davison
Coal Company, No. 1 Broadway, left on Tues¬
day for a two day trip to Quebec.
A. P. Sutter, of the Sutter Coal Company,
Punxsutawney, Pa., was a recent visitor to the
New York trade.
E. H. .Sanborn, of the Philadelphia office of
the Berwind-White Coal Mining Company,
visited the New York offices of his company
last Tuesday.
Gardner Pattison, of Pattison & Bowns, No.
1 Broadway, is spending his vacation this year
in Maine, and is expected back around
August 2nd.
G. H. Kent, of Williams & Peters, No. 1
Broadway, leaves around the first of the month
for his vacation, which will be spent at his
summer home at Watch Hill, R. 1.
H. W. Henry, vice-president of Peale, Pea¬
cock & Kerr, Inc., Grand Central Terminal,
has been spending a couple of weeks in a visit
to relatives at Rochester, \’t.
John Stoddard, Savannah representative of
the Stonega Coal & Coke Company, with
headquarters at Big Stone Gap, V'a., was in
town several days this week.
b'rederic Landstreet, general eastern sales
agent of the Punxsutawney Coal Mining Com¬
pany, with headquarters in Philadelphia, was
a visitor to New York on Tuesday of this
week.
The Luchenbach Steamship Company of
New York have placed a second order with
the Fore River Shipbuilding Corporation of
Quincy, Mass., for a cargo steamer of large
capacity.
John H. Gans, president of the Gans Steam¬
ship Company, with offices at No. 12 Broad¬
way, died on last Friday night at his home
on Staten Island, after a month’s illness. Mr.
Gans was well known to the coal trade, espe¬
cially those interested in exports and bunkers.
On Monday, August 2nd, the Department of
Education will receive bids for furnishing and
delivering to its department 23,700 gross tons
of anthracite and semi-bituminous coal, more
or less, for use in the schools in New York
City, and also for several ofiices and depart¬
ments. The period of delivery will be from
August 16, 1915, to March 31, 1916.
John Lochrie, the well-known Windber, Pa.,
operator, spent last week visiting the eastern
cities, returning to his home on Monday. Mr.
Lochrie heads about four coal companies in
the Windber territory, and is now very busy
in a new development at Central City, which
will within a few months be an important
shipper.
R. H. Kmode, representing the National
Fuel Company, Uniontown, Pa., was in New
York during the past week calling on trade,
principally in the interest of their coke de¬
partment. Mr. Knode reports that there has
been a very decided improvement in the coke
business during the past few weeks, and that
prices are looking upwards.
George F. Glitter, of Hartwell, Lester &
Glitter, Inc., No. 1 Broadway, returned late
last week from a three weeks’ trip to the
Provinces, visiting Nova Scotia, New Bruns¬
wick and Prince Edward Island. Mr. Glitter
found business conditions in much better shape
in the Provinces than he had been led to be¬
lieve existed. Consequently he had a very
satisfactory trip.
Two anthracite coal companies recently
granted charters are the Tamaqua Coal Com¬
pany, and the East Lehigh Colliery Company,
each capitalized at $12,000. The stockholders
are: Colliery Company, E. M. B. Shepp 600
shares; Rosalind Shepp 590 shares and Rosabel
Shindel 10 shares. Coal Company, J. A.
Hirsch, 40 shares; Rosabel Shindel 40 shares,
E. M. B. Shepp 20 shares and Rosalind Shepp
20 shares.
Newspaper advices from Windber in the
Somerset-Cambria coal fields of Pennsylvania,
indicate great activity in coal developments.
Operators are preparing to open the upper
Lochrie mine near Central City. Funds are
being subscribed and a right-of-way obtained
for a branch railroad to the workings. Ship¬
ments from the Bougher mine in the vicinity
will be started August 1. The Arrow Coal
Mining Company has begun work on the open¬
ing of a mine on its 1,200 acres of coal land
near Reitz. A liranch will be built from the
railroad line to Cairnbrook to insure trans¬
portation of the output.
In Shi/’ ping Illustrated, the well known New
York shipping paper, of the issue of July 24th,
appears an interesting article on Lake built
deep sea boats, containing a picture and de¬
scription of the new steamer “International”
of 2,500 tons dead weight capacity, built on
the Great Lakes for the American coast coal
trade. The “International” is intended for the
coal trade for shallow draught ports. It was
built according to Lloyd’s rules with a view
of meeting their classification in ocean service,
and had dead weight carrying capacity of
2,500 tons on fourteen feet draught, and its
speed exceeds ten knots per hour. The gen¬
eral dimensions of the steamer are 256 feet 3
inches in length over all, and 244 feet on keel,
by forty-three foot beam, and a depth of nine¬
teen feet two inches. The propelling ma¬
chinery consists of a triple-expansion engine,
having cylinders sixteen inch, twenty-six and
one-half inch by forty-five inch by thirty-three
inch stroke. Steam is supplied by two Scotch
boilers using natural draught and tested for
a working pressure of 180 pounds per square
inch, the dimensions being eleven feet six
inches by eleven feet six inches. The keel of
this steamer was laid on April 17th, the boilers
installed on May 1st, the launching took place
on June 17th, and on July 3rd, exactly four
months from the date of the contract, the boat
was ready for acceptance.
No. 5]
THE BLACK DIAMOND
99
Philadelphia Trade.
Signing of Contracts, Long Held Up, Is
the One Feature of a Listless
Coal Market.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, July 2i).
Not a thing has disturbed the tranquility of
this market during the last seven days. A flutter
of excitement would be such a novelty that it
would be worthy of notation in bold black type.
Midsummer dullness, to the full meaning of that
set phrase, seems to have gripped both the hard
and soft coal men and topics of conversation in
trade channels seem given over more to specula¬
tion as to what the future holds rather than
actual happenings of the present.
Such speculation, however, has resulted in one
thing. It has helped to hurry the signing of con¬
tracts that have been in the balance for some
time. Some few of the manufacturers are now
beginning to heed what the coal man has to say
in regard to stiffening of prices and have been
assuring themselves of coal for a time when
deliveries will be difficult. In this connection it
might be said that a shortage argument can often
be overdone and the continuous hammering and
warning of the consumer has been retro-active
where too active preaching has been indulged in.
Export business from the piers continues at a
high volume. It was said that the figures for the
month of July will show heavier shipments of
bituminous than any corresponding month of pre¬
vious years. Most of these shipments are going
to South .America, Spain and Italy.
So far as the price named on soft coals, there
is only one change noted in the week’s business.
That is on Fairmont slack with the new figures
of fifty to fifty-five cents posted. The advance
was due to the reduction in the make of three-
Qi-iarter sizes for lake shipments. Cement mills
are taking this size to within sixty per cent of
contract requirements. ]\Iuch of the newspaper
talk that has appeared recently regarding activity
in the steel and iron mills seems to apply to a
different section than that of Eastern Pennsyl¬
vania. Trips made by coal men through this
territory during the past week discount strongly
the stories of jobs going begging.
Anthracite Situation.
The bottom, it would seem, has dropped out of
the market for hard coal. Independents and com¬
panies alike report that their deliveries for local
consumption for the past week has been miserably
small. One middle man, however, put it this way,
"We know that a full quota of coal has not
gone into the cellars in this territory so when the
demand comes it will be with a rush. The retailer
has been a trifle more cautious this year than in
the past and has required cash for his goods,
otherwise the householder will have to pay the
advanced price of August or September for his
coal. Which ever way the cat jumps, I can¬
not hut see where the retail man has benefited.”
While egg and stove are the "leaders” to the
market — if the present market can he said to
have any outstanding features, yet there has
been a fair demand for buckwheat and the heav¬
iest deliveries are being made of the No. 2 size.
All of the other sizes are neglected and pea in
particular.
Practically all of the mines in the anthracite
district are maintaining strict suspension and
independents who have worked throughout the
entire summer have cut down to two days a
week this year.
Philadelphia Trade Briefs.
C. Bolton of llale-Ladysmith Coal Company of
Hucksdale, Pa., was a visitor to the trade.
J. R. Kleckner of South Bethlehem motored
down on Tuesday and paid a visit to various of
the coal men.
George M. B. Cann of George W. Bush &
Sons of Wilmington, paid a visit to his friends in
the coal trade this week.
Charles E. Davenport of the Seaboard Coal
Company of New York City was in town the
latter part of last week.
R. H. Knohe of the National Fuel Company of
Pittsburgh dropped in on trade acquaintances dur¬
ing the fore part of the week. ^
E. P. Lee of the Knickerbocker Fuel Company
of New York City was a caller at the local offices
of that company on Tuesday.
Tom S. Bailie, sales manager of the Pittsburgh
& Westmoreland Coal Company put in the fore
part of the week on business here.
J. Howard Magee, traveling freight representa¬
tive for the Western Maryland Railroad, made his
rounds of the coal men of this city during the
fore part of the week.
A. P. Sutter of the Sutter Coal Company of
Punxsutawney, Pa., made the rounds of the trade
early this week in an endeavor to "get shut” of
quite a jag of coal that he had to market.
D. H. Jenks of the Producers Coal Company,
and Mr. Hindi of the Hinsch-Briscoe Coal Com¬
pany, both of Cincinnati, passed through the
Quaker city last week enroute to the cool Mecca
of the east — .Atlantic City.
The brothers Stauffer of the B. Nicoll & Com¬
pany forces here were out of town this week.
Harry K. Stauffer was in Pittsburgh and "J. C.”
journeyed to Scranton and other points in the
northwestern part of the state.
F. E. Ulrich, sales manager for the Lehigh
Coal & Navigation Company, and R. B. Cornog
of the Cortright Coal Company, with their wives,
have been spending a two weeks’ vacation cruising
the Delaware River on Mr. Ulrich’s comfortable
boat.
Harry Moore, chief clerk at the Port Rich¬
mond Coal Piers returned to his desk this week
after his vacation. He has refused to tell where
it was spent, but inasmuch as Mr. Moore is a
strong rooter for the Phillies his friends draw
their own conclusions.
Marshall D. Brooke of the Buckhannon River
Coal Company, whose headquarters are in Lhiion-
town was noted among the visitors of the week.
Jack Jones of the staff of the Alorrisdale Coal
Company had an opportunity to try out a new
fangled car in a trip up state this week.
Looking younger if anything than when he was
here on former visits. “Col.” John H. Sessions,
the representative of the Philadelphia & Reading
Coal & Iron Company at Minneapolis, dropped in
on old friends this week. The "Colonel” is a great
Ijooster for the northwest and his word pictures
are enough to make one long for the land of
Minnetonka. While this was purely a pleasure
trip he found time to talk business also, here and
there.
F. B. Cortright was taken ill suddenly last Fri¬
day afternoon and was forced to take to his bed.
Later alarming symptoms developed and two spe¬
cialists were called in. They were undecided
whether gall-stones was his malady or whether
it was appendicitis. An x-ray examination will
be made to determine if there should be an
operation. Mr. Cortright is one of the most
popular young men in the trade and his trouble
has called forth universal sympathy.
In the death of George Deardorff McCreary,
former congressman and philanthropist, there
passed a man who made his mark in many lines
and who was strongly identified with the coal
trade at one time. He was born in York Springs
in 1846 and spent his early life in the anthracite
belt. When he left the university in 1867 it was
to enter his father’s firm, Whitney McCreary &
Kemmerer. His father had been one of the pion¬
eers in the coal business and at his death his son
became a director in the Upper Lehigh Coal Com¬
pany and the Nescopee Coal Company and other
concerns in the anthracite fields. Following a
term as city treasurer in the early nineties, Mr.
McCreary' followed his bent in the banking busi¬
ness and was known from that time, more as a
hanker than a coal man.
Buffalo Trade.
Buffalo, N. Y., July 29. — The lake shipments
of anthracite have dropped off to a lar.ge extent,
through the slowing up of one or two leading
companies which have a large amount of coal
already shipped. The week’s figures were 79,630
tons, which were distributed as follows : C'hi-
cago, 28,000 tons : Duluth-Superior, 23,000 ; Port
Arthur, 7,030 ; Sheboygan, 6,700 ; Fort William,
4,800; Racine, 3,700; Alenominee, 3,300; Mani¬
towoc, 3,000. The docks at the other end of the
lakes are reported by shippers to he filled up,
so it is probable that not much will be done for
a time. Plenty of tonnage is available, as the
numiber of vessels Iirin.ging in ore is rather
large. There is also plenty of coal available for
shipment. Some shippers predict a heavy move¬
ment l)y lake during the fall, in preparation for
the troubles likely to occur over mining sched¬
ules next spring. Others say that lake business
may not be much above the ordinary season and
that the strike jiossibilities of next spring will
not affect shipments to any great extent. A
good deal of coal will have to be moved from
upper-lake docks before there is a brisk re¬
sumption of shipping.
Demand from dealers is light. Most of them
have ample supplies of coal on hand and no great
activity is looked for until colder weather comes
along. Business will probably be slow until
September, in the opinion of some of the rep¬
resentatives.
The bituminous demand is showing up some¬
what better than a few weeks ago. IMore con¬
cerns are ordering and there is quite a little
increase in optimism among both buyers and
sellers. Trade is not on a normal basis, but
the revival in the steel trade makes most every¬
body feel that in a short time business is going
to be better all around. Steel plants in this
section are runnin.g on a nearly full basis, while
a number of other large industrial lines, includ¬
ing automobile plants, have plenty of work on
hand for a large force of employes. Not much
life exists in the lake trade, owing to the plenti¬
fulness of coal at receiving ports. This ought
to be a busy period in the lake trade and if things
would start up there the market would be much
benefited.
Coal prices are unsteady and weak. Little
tendency toward an advance is shown, though
some testify that slack is a de.gree stronger than
it has lately been. It is still twenty or twenty-
five cents below what it brings in good seasons.
Buffalo Trade Briefs.
D. W. McClennan, sales agent of the .Alle¬
gheny Coal Company, spent two days this
week on business at the home office of the
coiTspany in Cleveland.
The steamer Charlton, an ocean vessel has
been in drydock here for repairs, after going
ashore in the St. Lawrence river. She has now
gone to Lorain, Ohio, to load a bituminous coal
cargo for England.
Charles T. Faulkner, for some time connected
with the Buffalo coal trade, is now on the sales
staff of Brady & Ewell. For the past two or
three years Mr. Faulkner has been sales man-
a.ger of the Western New York Fuel Company,
with an office in the Prudential building.
The Lackawanna Steel Company is now re¬
ported to be operating on a 100 per cent basis,
for the first time in a long while. The unfilled
order tonnage has shown a big increase recentl)'.
The plant has fourteen open-hearth furnaces,
each with a capacity of 150 tons a day, and is
building four additional ones in order to keep
up with business.
The contract for furnishing the coal suppl\'
for the North Tonawanda waterworks has been
divided between the Ives Ice & Coal Company
and G. F. Meyers, local dealers, whose bids
were practically the samle. The city of Tona¬
wanda this week advertised for 2,000 tons of
slack coal to be used by the waterworks there.
The bids will be opened on August 23.
A number of visitors to the coal market were
here last week, including the following : Hebron
Robison, general manager of the West Virginia-
Pittsburgh Coal Company, and L. A. Burnett,
president of the Clifton Coal Company, both of
Pittsburgh; A, P. Sutter, president of the Sutter
Coal Company, Punxsutawney, Pa. ; William T.
Ryan, East Boston Coal Company, Kingston,
Pa.
Thomas J. McNamara continues at the head
of the Iroquois Coal & Coke Company, Buffalo,
hut has made an arrangement with President
Thomas Donohoe, of the Pittsburgh & South¬
western Coal Company, by which he is to be¬
come the sales manager of the company, with
office in this city. The company has a mine at
.Avella, Pa. President Donohoe is expected to
be here this week for business and recreation.
A hearing was given before a special exam¬
iner of the Interstate Commerce Commission
here this week in the case of the Buffalo Union
Furnace Company and the Wickwire Steel Com¬
pany against a number of railroads, alleging
overcharge on shipments of coal and coke from
Tyler and Sykes, Pa. Complainants claim that
they have to pay forty cents more a ton on
coke from these points than their competitors
do. Samuel A. Kennedy, a coke expert from
Chicago, was the chief witness.
Prof. F. E. Bach, sociological suiicrintendent
of the Ellsworth Collieries Company has been
asked to serve as an official judge of the inter¬
state mine rescue contests, to he held at the
Panama-Pacific Exposition from Seiitemher 23 to
September 26 in San Francisco.
100
THE BLACK DIAMOND
[July 31
New England Trade
Boston, July 29. — {Special Cori'cspondnce.)-
An improvement in business is noted by the
local wholesale bituminous and anthracite
dealers, especially the latter, yet everybody
admits that there is much room for further
improvement.
The improvement in bituminous, however,
when sifted down, appears to be more a matter
of sentiment than any material increase m
bookings of new business. One thing is very
certain though, and that is the f. o. b. Hampton
Roads market is considerably firmer than it
was a fortnight ago when it was an
secret that shippers were cutting the official
market price of $2.85 per ton. Ihe large ex¬
port demand and a steady betterment m the
bunkering business up and down the Atlantic
coast are largely responsible for the lirmer
Southern market. This firmness has been re¬
flected on the spot market for New River and
Pocahontas at Mystic Wharf which has been
in a comatose condition for many weeks.
A fortnight or so ago. New River and Poca¬
hontas were offered at Mystic Wharf on a
basis of $3.63 per ton f. o. b. or even less,
while today dealers are asking and getting
more money. Georges Creek is very strong
there at $3.90@4.00 per ton, and other grades
of bituminous are more firmly held than here¬
tofore. New England manufacturers, who two
months ago had large supplies in their storage
yards, have in many instances been here re¬
cently sounding the market with a view to
purchasing within the near future. So it would
appear that local agents are justified in ex¬
pecting good business after the turn of next
month. Old contract Southern coals are com,-
ing in well, but there is no congestion and
the market appears to be on an extremely
healthy basis. One optimistic local dealer goes
so far as to predict very sensational price ad¬
vances in soft coal provided the European
war continues another six months. Pennsyl¬
vania bituminous is firmer, although not much
more active. They are Quoted on a basis of
ninety cents to $1.65 per ton on cars at the
mines.
During the past week there has been quite
a little spurt in the buying of anthracite in¬
dicating greater activity among the retail
dealers. Locally, this assertion is borne out
by the fact that retail dealers have been buy¬
ing quite a number of horses in the Boston
market. The buying of coal has come from
dealers and large consumers operating in such
cities as Providence, Pawtucket, Manchester,
N. H., Fitchburg, and smaller dealers located
on Boston & Albany and New Haven as well
as Boston & Maine points running out of
Portsmouth. Maine and certain sections of
New Hampshire and Vermont have been back¬
ward in buying, and Fall River has been rather
quiet owing to the fact that improvements
being made to the Jamgs A. Bowen Co’s, prop¬
erty there will not be completed until possibly
October.
The spot market at Mystic Wharf has been
much better and the smaller dealers have been
able to get rid of coal there without cutting
prices or giving discounts. Stove and egg at
Mystic Wharf are firm at $6.10 per ton on cars,
and nut at $6.35. Within a few days all three
sizes will cost ten cents per ton more. The
buying has by no means been confined to car-
lots, for the cargo tonnage for the past week
has footed up well. Coal is coming forward
freely, but is quickly cleaned up and the
chances are that comparatively few July orders
will have to be carried over into August. The
movement of anthracite to the Provinces con¬
tinues somewhat restricted as Northern deal¬
ers are looking for cheaper freight rates. At
Portsmouth prices rule ten cents a -ton above
those named at Mystic Wharf, and at Provi¬
dence ten cents a ton less.
The marine freight rate market presents few
new features. Rates on anthracite from New
York to Boston hold at fifty to fifty-five cents
a ton. Barge owners are still getting return
cargoes of ice from Maine points. The de¬
mand for Southern space appears to be a
shade better, but no change has been made in
rates, which run from seventy-five to eighty
cents per ton.
Massachusetts Gas Companies.
The combined net earnings available for
dividends of the subsidiary companies of the
Massachusetts Gas Companies for June
amounted to $254,229; for the same month last
year they were $220,363. The grand total earn¬
ings for the fiscal year ended June 30, were
$2,676,573, and for the previous year $2,524,043.
The earnings of the gas department in June
and the year ended June 30 increased in a much
larger proportion than those of the coal de¬
partment did.
Following are the earnings of the coal de¬
partment in detail for June and the twelve
months ended June 30, together with com¬
parisons :
Tune— 1915. 1914. 1913.
N.'E. Gas & Coke . $ 49,.579 $ 75,566 $ 71,857
N. E. Coal . 40,986 10,803 36,628
Boston Tow Boat . 538 3,133 3,746
Federal Coal . 10,558 5,930 2,523
Total . $107,604 $101,440 $114,756
Year Ended June 30 —
N. E. Gas & Coke . $ 010,032 $ 797,753 $ 789,927
N. E. Coal . 301,453 214,789 152,003
Boston Tow Boat . 48,208 41,430 43,030
Federal Coal . 109,336 69,094 22,374
Total . $1,075,630 $1,123,007 $1,008,003
Death of J. C. Harrington.
John C. Harrington, a member of the firm
of Green & Harrington, coal dealers, died at
his home. No. 1 Parker street, Everett, Mass.,
July 26. Mr. Harrington has been ill for some
time, death resulting from Bright’s disease.
He was 45 years old.
Mr. Harrington was one of the best known
and popular men in Everett where he had
long been active in politics, having be^n a
prominent member of the Republican Com¬
mittee. For more than twenty years, Mr.
Harrington was a member of the Everett Re¬
publican Ward and City Committee. He was
a charter member of the Everett lodge of
Elks.
Mr. Harrington was born in the house
where lived his grandfather, who was one of
the earliest residents of Everett. He gradu¬
ated from the Chelsea High School and then
attended the Harvard Medical School, but he
chose a business and not a professional ca¬
reer. In addition to being in the coal business
he was a member of the Winthrop Yachting
Supply Company.
Give Employes Stock.
Within the immediate future the 655 ^em¬
ployes of the Boston Consolidated Gas Com¬
pany will receive a premium of eight and one-
half per cent on their salaries in accordance
with the terms of the profit-sharing plan which
has been in effect since 1906.
The bonus is not given the employes in the
form of cash, but is invested for them in pre¬
ferred stock of the Massachusetts Gas Com¬
panies. A year ago the company paid a pre¬
mium of eight percent to its employes, who
at present own something like 3,500 shares of
Massachusetts Gas preferred stock.
President James L. Richards, in a letter to
the employes, devotes, considerable space to
Legislative matters pertaining to several bills
introduced seeking to repeal the so-called
sliding scale act under which the company is
now operating. In conclusion he says:
“I desire to express to all our employes,
the appreciation of the board of directors for
what has been accomplished in the past, and
to urge that everyone will render the most
efficient service possible in the future with the
hope and expectation that the results for the
year just commencing will show a substantial
improvement over the past year.
“If employes desire to take advantage of the
privilege of making an additional deposit to¬
ward the purchase of one or more shares in
the Massachusetts Gas Companies, the treas¬
urer should be advised not later than Aug¬
ust 7th.’’
Baltimore Trade.
Baltimore, July 29. — (Special Correspond¬
ence.) — But little real change is to be recorded
in the coal trade here for the past week. If
anything there was a little lost, as the par¬
ticularly bright feature, the export trade,
showed a falling off to some extent, while
continuing heavy. For the week ending July
24 but 31,989 . tons of coal were loaded -here
for export, the smallest loading for ten or
more weeks past. That there will be another
big upward movement shortly, however, is
assured by the large number of charters closed
for loading at this port. From twelve to
twenty charters per week are now being an¬
nounced, and many of these are for August
loading.
While no change of note is seen in the im¬
mediate coal situation here, war business is
coming more and more heavily into this ter¬
ritory, and the industrial condition here is
sure to improve. More men are being put on
daily at the Maryland Steel Works at Spar¬
rows Point, and there are now nearly 4,000
men at work there as against about 1,500 four
or five months ago.
The railroads too are bending efforts to
prepare for a big business revival that is ex¬
pected with the fall. The Baltimore & Ohio
has urged rapid delivery on its 2,000 steel
hopper cars ordered last week. A large part
of this order will be ready for the early fall
trade.
From mining sections that supply this ter¬
ritory come reports of dullness in regard to
new business. ’ Deliveries on contracts are
stronger, but this has not been sufficient to
bolster the price list for spot business in any
way.
Prices to the trade at the mines may be
quoted as follows:
F. O. B.
F. 0. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
$2.23@2.28
Run of mine .
. 70@ .80
2.13@2.23
Slack .
. 45@ .50
1.88@1.93
Somerset —
Best .
. 1.25@1.30
2.43@2.48
Good .
. 1.10@1.15
2.28@2.33
W. M. R. R.—
Freeport .
1.93@1.98
B. & O.—
Freeport .
1.93@1.9S
P. R. R.—
Best South Fork .
. 1.30@1.35
2.48@2.53
Miller Vein .
2.78@2.83
Ordinary .
2.03@2.08
Baltimore Trade Briefs.
The Bartlett, Hayward Company of this city
has secured an immense war munitions con¬
tract. While this is admitted, the extent of the
order is held secret. It is known that the
concern has purchased an entire city block
adjoining their present plant and will put up
an immense munitions factory there, however.
The Spedden Ship Building Company of this
city has also received an order for shells and
is installing new machinery for their manu¬
facture.
The longest sea tow from this port is now in
progress. The steamer Falcon, towing the
barge Charles Nelson left here on July 16
for San Francisco, by way of the Panama
Canal. The steamer is carrying 1,800 tons of
coal and the barge 1,000 tons of fuel. The
boats were loaded by the Davis Coal and Coke
Company at the Port Covington piers of the
Western Maryland Railway. The distance,
5,213 miles, is probably one of the longest for
a tow on record.
The incorporators of the new Fairmont
Helen’s Run Railway Company will hold their
first meeting for organization at the Conti¬
nental Building in this city on August 25.
In the meantime work is being actively pushed
on the four shafts being sunk near Helen’s
Run by the Consolidation Coal Company,
which product will move over the new road.
It is expected that shipments will begin about
January 1st, and will reach this port over the
Western Maryland Railway.
Omaha Trade.
Omaha, Nebr., July 29. — (Special Correspond¬
ence.) — There is not any change to speak of
in the situation in this territory as against
last week. We got a glimpse of the sun two
or three days the latter part of last week
which had a tendency to slightly stimulate
buying. It started in to rain Monday, how¬
ever, and has rained almost continually up to
this time which is naturally very discouraging
to all lines of business.
The following market prices prevailing:
Southern Kansas —
Mines.
Omaha.
Nut .
$3.20
Slack .
_ 1.35
2.70
Franklin County —
Lump .
$3.75@3.90
Egg .
3.75@3.90
Nut .
3.75@3.90
Williamson County — *
Lump .
_ 1.25@1.35
3.65@3.75
Egg .
_ 1.25@1.35
3.65@3.75
Rock Springs —
Lump .
_ 2.15
5.85
Nut .
_ 1.60
6.36
Arkansas Anthracite —
Lump .
6.61
Broken sizes .
_ 3.65
6.40
On Monday a disastrous fire in Poughkeep¬
sie, N. Y., damaged to the extent of between
$75,000 and $100,000 the coal and lumber plant
of the D. W. Wilbur Company. The damage
to properties adjoining the Wilbur properties
aggregated over a quarter of a million dollars.
Getting Rid of Manual Labor in Furnace Room.
“What do you know about underfeed stok-
ers?”
That, in the east, is quite a commonplace
question in this day of our Lord when a coal
salesman is supposed to have a range of in¬
formation extending from intricate railroad
tariffs to the analyses of the product of “the
mines of Squeedunk.” However, the under¬
feeds come in for more discussion than pos¬
sibly any other device that bothers the sales¬
man. Also the steam user has had the ques¬
tion “referred, for computation and report,”
so many times that, from any angle, informa¬
tion is not alone sought but welcomed.
Not so many days ago the writer drifted
into the office of the sales manager of a large
bituminous corporation. His attention was
drawn to a dozen or so catalogues and other
pamphlets lying on the desk. All had to do
with the underfeed, self-dumping, chain grate
and other stoking devices.
This coal man volunteered the thought that
a coal salesman of twenty years ago would
have had a mighty hard row to hoe if un¬
equipped and Rip Van Winklelike he were to
go on the street to sell his wares to the highly
polished and up-to-the-minute purchasing agent
of this day and date.
“I have drifted along for several years, have
seen dozens of underfeed stokers, looked them
over and let it go at that,” he said. “I man¬
aged to ‘get by’ with my ignorance until the
other day. Then I was talking with a man
who knew and I found how woefully I was
at sea. ‘What did I know about underfeed
stokers?’ Practically nothing. And I was
willing to admit it. But I determined not to
be caught that way again. So I started to
look up this matter of underfeeds. The more
I delved into the question, the more I became
involved in the technical. Magazine articles in
scientific journals were of little help to me.
I found that they proceeded upon the theory
that the basic principles were known to the
readers. What I wanted was a broad ex¬
planation of underfeed principles and I found
that it would take a ‘Philadelphia lawyer’ to
put in plain words the involved explanation of
individual plants.
“So, as a court of the last resort, I decided
to get the catalogues of a half dozen of the
standard firms and see what they had to say
first hand. Well, I have found out some of
the essentials and I am still digging for more.”
This — the foregoing — is offered as an ex¬
planation why the writer went “rooting” about
One Type of Stoker Is Described, Indi¬
cating How Coal May Be Fed, Air Regu¬
lated and Ashes Removed by Automatic
Machines.
trying to dig up an uninvolved, non-technical
article on underfeed stokers.
First, in getting the bearings on the question
it was found that Philadelphia and Chicago
are centers in the stoking line, just as Louis¬
ville is for whiskey, Boston for shoes and
New Orleans for sugar. Being close at hand,
and to follow the line of the least resistance,
the product of the Quaker City presented the
easiest ground for inquiry, the pivotal thought
being that all stoking devices should have a
fair field, with no pretense at favors.
However, before getting away to a good
start, yes, before getting my hat off, as it
were, in following a line of inquiry, yours
truly was brought up with a short turn. Out
at the plant of the American Kngineering
Company, where the Taylor stoker is made, I
made known my errand and an obliging
young lady dragged forth the volumes and
stacks of articles on underfeed and other stok¬
ers. Yes, considered from a textbook stand¬
point it would have startled a Boston “Tech.”
man. The explanation was volunteered that
the purpose of the visit was to gather, if pos¬
sible, a non-technical article on this very tech¬
nical subject and not to take a complete course
in one branch of mechanical engineering.
This understood, from another source came
scrap books with clippings showing technical
data, measurements, data reasons why and
wherefore, fore and aft. Again, hopelessly at
sea.
“Now,” wishing to get a start, “let’s start at
a beginning. Suppose you tell me of the im¬
provements in your class of stokers in the past
year?”
Frankly, the query should have been given
at least a reproving smile. It took in so much
territory. The reply came something like this.
“There is such a wide range of possibilities
in stoker construction that improvements are
carefully considered and little points of vari¬
ance of opinion have taken up hours of debate
in the sessions of the A. S. M. E.” (Later I
found these initials stand for the American So¬
ciety of Mechanical Engineers.)
Right here it was brought home that to deal
with a technical subject, technicalities of neces¬
sity would have to be included. So, headfore¬
most another plunge was taken.
“As a labor saving device, how do the stok¬
ers offer a solution to the problem?”
“In one plant of the New York Edison Com¬
pany of 330,000 kilowatt equipment, one man
attends to the stoking.”
Some jolt for the uninitiated interviewer.
That was about the place to say “Good night”
and take it on the run. Mentally, the answer
imposed the picture of a steam plant the
writer had known in his own home town with
a battery of six boilers and as many firemen
on the job to spread the coal. Yes, and the
foreman’s story illustrative of handling help
of flesh and sinew. It ran something like this:
_A Georgia farmer supplanted the family mule
with an automobile. It had been his habit to
An Annotated Rear View of an Underfeed Stoker.
RETORT
TUYCREIS
extension
ORATES
SPEED
SHAFT
PPEIR ram
RAM BOX
.DRiviNO Clutch
SHAFT
D'lMPiMG LCVER
^ 50CKF-T
LOWER RAM
'\
TUYCRC: BOX
WIND nox
DUMP PLATES
A Front View of an Underfeed Stoker of the Taylor Type.
102
THE BLACK DIAMOND
[August 7
start the mule, when balky, by means of a kick
in the midriff. A week after he got the auto
he approached the salesman and wanted to
trade it back.
“What’s the matter, don’t you get more
speed, more convenience and better service
than with your old mule to depend on?’’ asked
the salesman.
"Yes,” said the agriculturist, “but who wants
to kick a machine that won’t even grunt
back?”
It is right there that that the wonders of
the mechanical grow on one who wants to
delve into underfeed stokers. The elmination
of labor problems, oh, well, a little more of
that anon.
Underfeed stokers I found were quite mod¬
ern contraptions. Seven years ago, so 1 was
told, there were less than 100 in use and now
there are a couple of thousand installations.
No wonder coal men find it more necessary
to “brush up” on stoker knowledge now than
in the past. The natural question that fol¬
lowed was as to the class of coal that produce
the best results.
“The better the goods, the better the results,”
said my informant. “We recommend coals for
this stoker of 14,000 b. t. u.’s and up as the
best result producers. More and more comes
the demand for perfect combustion and elimi¬
nation of smoke. Let the human part of a
inechanical stoker do his part and it can be
so adjusted to burn low grade coals down to
siftings, yes, and even a mixture of sawdust,
perfectly. The trouble is that the human part
will sometimes forget; the mechanical part,
never.”
Right in the plant of the American Engineer¬
ing Company is a model stoker that best shows
the capabilities of the device and the result in
smoke elimination. The illustrations tell their
own story in the heart of Philadelphia where
the axiom “Cleanliness is next to godliness”
is written large in the laws of smoke preven¬
tion, and eagle-eyed inspectors roost every¬
where to catch those who desecrate said laws.
However, by this time the technical had so
interjected itself that the futility of being non¬
technical was finally recognized. So, now to
stick close to facts proffered and adduced from
information given me.
The basic idea in the construction of stokers
is to mechanically control air and coal so as
to produce a perfect fire. The theory of the
thing is that a perfect fire never produces
smoke. It is the contention of underfeed
stoker engineers that the perfect fire must be
fed from beneath and that only in this manner
can the hydro-carbons distilled from “green”
coal be completely burned by passing through
a white-hot fuel bed.
Mechanical control of the air and of the coal
supply; the automatic disposal of refuse as
fast as it forms in a permanently closed fur¬
nace prevents the inrush of cold air, chilling
of the fires and incomplete ‘ combustion. And
in this connection it is advanced that to pro¬
duce a perfect fire it must be automatically
and continuously cleaned, otherwise the clean¬
ing periods will necessitate the frequent open¬
ing of doors and will reduce the b'oiler out¬
put temporarily.
Now that we are into the thing, “good and
good,” it might be well to show by illustra¬
tion what has been written about. The etch¬
ings showing a perspective of the front of the
stoker and that of a rear view may be of as¬
sistance to those who have a bump of the
mechanical in their cranium. Here is the ex¬
planation, as given.
“The rams introduce and distribute the coal
by pushing it forward at an angle to the fire
surface. Gravity then moves the entire fuel
bed down an incline to the dump plates; be¬
cause gravity operates constantly the power
recpiircd to drive the rams is a minimum. The
engine shaft is connected with the speed shaft
of the stoker and the fan shaft so that a
change of si)ccd simultaneously changes both
the rate of feeding coal and the rate of siq)-
plying air.”
.\gain.
“For burning large quantities of coal every
clement of stoker design must be directed to¬
ward capacity. Every inch of grate area must
be callable of obtaining high economy when
working at the highest point of activity. With
coals that form a fusible ash, the rocking mo¬
tion serves to keep the clinker well broken up
and maintains throughout this stage of com¬
bustion a uniform porous fuel bed which makes
high burning capacities, together with furnace
efficiejicies, readily obtainable.”
For the underfeed stokers there is no ques¬
tion on the saving of labor. The coal is fed
from hoppers without leveling or trimming by
hand, the fire is cleaned without hand slicing
or raking; the mechanically regulated air sup¬
ply and automatically cleaned fire have re¬
duced the attendant’s labor to lowering and
raising the dump plates.
Now as to cleaning: “Cleaning as com¬
monly understood among firemen is eliminated
by this type of underfeed stokers. It goes on
all the time — automatically. Ashes and clink¬
ers slide the dump plates by gravity without
grate bar agitation or fireman’s labor.”
Now as to construction and operation of
this underfeed stoker and the object of attain¬
ment, the following is given as a concrete
description of the stoker:
“Coal from the hopper is fed into the fuel
magazines from which two cylindrical rams
push it into the furnace at an angle to the fire
surface. The upper ram shoves the coal up¬
ward and outward, distributing it in the cok¬
ing zone. The lower ram working with the
upper acts similarly, forcing the refuse toward
the dump plates in the rear without forcing
in fresh coal.
“A retort is formed by two tuyere boxes —
the retorts and tuyere boxes alternating — the
number depending on the size of the boilers.
The tuyeres interlock when in position.
“The necessary air to support combustion
is furnished by a power driven fan from which
it is driven through ducts to the wind box and
thence into the tuyere boxes and escaping
through the tuyere openings, mingles with the
gases distilled from the coal and with the
coked fuel pushed forward and upward by the
rams.
“Combination dump plates and fire guards
are hung at the rear of the wind boxes to
receive burned-out refuse. These are dumped
periodically, as conditions of service require.
These are operated from the front of the
stoker and are released by a hand lever. The
hot ash is deposited in a large pocket and is
moved against the crusher plates by a recipro¬
cating movement. At the same motion a pre¬
viously compressed charge is discharged at
the bottom over the dumping apron. The op¬
erator can release the entire pocket of ash by
dropping the dump aprons.
“The air supply to the extension grate is
regulated by a hand wheel in front of the fur¬
nace, and when once set is subject to the same
automatic control as the air supply to the
stoker itself. With this class of stoker coal
feeding is as continuous as the fire itself. The
fresh coal is slowly pushed into the incandes¬
cent zone, gradually heats and then cokes in¬
stead of being thrown cold on the burning
fuel. Coal is fed only as fast as it is con¬
sumed, never in excess of the immediate re¬
quirements, and is supplied in equal quantities
to all parts of the furnace.”
Centralized Power Plant for Coal Mines.
At Cabin Creek Junction on the line of the
Chesapeake & Ohio Railway in West Virginia is
situated the central power plant of the Virginia
Power Company. It is on the bank of the Kana¬
wha river, the current of which the company
expects to use, after a while, for the making of
electricity. On all sides are coal mines from
which at present is drawn an abundant supply of
coal to make electric power by the ordinary steam
process.
In the erection and equipment of this building,
in the laying of transmission lines and in the
erection of substations the company has already
invested, so it is said, upwards of $4,000,000.
It is the intention ultimately to make most of
the electricity by water power, supplementing that,
from time to time, by the use of coal and an
auxiliary steam plant.
At present the hydro-electric facilities have not
been put into operation, therefore the Virginia
Power Company, which is already supplying power
to a great many mines all through that section
of West Virginia, is creating its power entirely
from coal. To get this coal into the plant an in¬
genious device is employed which does the work
with the least possible work and inconvenience.
The power building, in height, corresponds to
about an ordinary four-story structure. On one
side of it has been erected a tall, panel shaped
separate building, which looks very much like a
coal tipple. On that side of the building is the
spur track of the railroad which delivers the coal
from the mine. The coal is all moved in hopper
bottom cars and is dropped through the bottom
of those cars into a concrete hopper or boot. From
this hopper the coal can be dropped through a
gate directly into a large bucket.
Two buckets work in a reciprocating fashion by
means of a cable. That is, when one goes up to
the top of the tipple the other comes down. While
one is taking on a load of coal at the hopper be¬
low the other is discharging into another hopper
at the top of the tipple arrangement.
From this hopper at the top the coal is sent
down into larries, which run around on a circular
track situated in the top of the building. These
larries dump their coal into other hoppers situ¬
ated above the furnaces. From these hoppers the
coal is sent down through a chute directly to or¬
dinary stoker equipment in the ordinary fashion.
There is an arrangement also for taking out the
ashes. As these are removed from underneath
the grate they are put on to a conveyor which
carries them to a sort of hopper located in the
tipple previously referred to. From this receptacle
the ashes are run out over a chute into a waiting
railway car and are carried away.
Power House of the Virginia Power Company, Showing Coal Handling Device.
No. 6]
THE BLACK DIAMOND
103
Three Most Important Price-Fixing Cases.
I have just been reading in the United States
court reports the first intelligent information I
have had as yet as to the real gist of the court’s
decisions in the three recent celebrated price¬
fixing cases — the Ford automobile case, the Kel¬
logg corn flakes case and the Victor talking ma¬
chine case. In all these cases the manufacturers
tried with the utmost ingenuity to tie up both
jobbers and retailers so that the wholesale and
retail prices on their various products would not
be cut. The United States court decided against
all of them. In the Kellogg case the decision was
not final or complete, but indicates the mind of
the court on the main question whether a manu¬
facturer may compel a retailer, whom he has not
sold direct, to sell at a price which the manufac¬
turer dictates.
Some attention was paid to these three cases
hy the newspapers, but as usual, the reports were
badlv garbled, and in order that the business
world, which is so keenly interested in the sub¬
ject from one standpoint or the other, should
have a clear conception of the pro.gress of legal
events, I wdll briefly give the point involved in
each of the three cases.
The Ford Case.
The Ford Motor Company has always tied ev¬
erybody up to sell Ford cars at retail at regular
list prices. One of its agents or sellers in Ohio
cut the price and Ford at once asked for an in¬
junction and damages. The Ford plan of lirnit-
ing the price was to do what it called licensing
its dealers, the condition of the license being that
they should resell at regular Ford prices. Of
course Ford’s idea was that if anybody violated
that condition and cut the price he would revoke
the license to sell and get an injunction prevent¬
ing the cutter from selling any more cars that he
might have on hand.
The plan did not succeed. The court held that
in spite of the “licensing” scheme. Ford had actu¬
ally parted with the title to his cars, and the
buyer therefore had the right to do as he pleased
with them. The court said it was true that Ford
had made a contract with his dealers not to cut
the price, but it was illegal and he could not en¬
force it. This case enforces the doctrine laid
down by the United States Supreme Court in the
Sanatogen limited price case, that whether an
article is patented or not, a seller who has actu¬
ally sold it, and parted both with possession and
title, can not interfere with the retail selling
price.
The Victor Talking Machine Case.
The scheme used in this case was even more
ingenious than the other. The Victor concern has
of course patented its machines and its records.
Everything, in fact, about its whole enterprise is
tied up with patents. Every machine and every
record had printed on it a notice that they were
not sold, but that the Victor company merely
licensed the right to use them. The title to both
machine and records remained in the Victor until
the patents expired, according to this clever
scheme. Here, too, this “license” could be re¬
voked the minute somebody — buyer or licensee,
whichever you like — broke the Victor company's
rules, the most important of which was of course
the rule to sell at a fixed price. And if the price
was cut the Victor company, under its contract,
could go in and take its goods back.
The “license to use” was granted upon the pay¬
ment to the Victor company in the beginning of a
sum which the Victor company called a “royalty,”
but which corresponded exactly with the price
charged both for machine and records.
Macy & Co., the New York department store¬
keepers, cut the price of Victor records, and the
\’ictor company promptly revoked their license
to sell and demanded the return of all unsold
goods, on the ground that breaking the price
condition constituted an infringement of its pat¬
ents! Macy & Co. resisted, and the Victor com¬
pany then applied for an injunction, damages, etc.,
to prevent Macy & Co. from continuing to cut
prices. Here too the plan failed. The court said
that inasmuch as the Victor company had col¬
lected the whole royalty in the beginning, instead
of an installment like royalties are usually col¬
lected, it showed that it was after all not a
license, but a sale, and being a sale, the Victor
company could not interfere with the retail sell¬
ing price.
The Kellogg Case.
The Kellogg company is a manufacturer of
toasted corn flakes and has always been particu¬
larly earnest in its effort to compel jobbers to sell
retailers at a uniform price, and retailers to sell
consumers at a uniform price. Its latest plan
was to get a patent on some feature of the car¬
ton in which its corn flakes were packed. It could
not patent the corn flakes. The company only
sells jobbers that will a.gree to sell to retailers at
the company’s fixed price. It did not deal with
retailers direct, so it printed a notice on each
carton that the retailer who sold below ten cents
would be considered an infringer on the com¬
pany’s patents. Flere the question was opened by
the United States government, who began suit
against the Kellogg company on the ground that
its plan of limiting prices was a violation of
the Sherman act. The first decision on this case
has just been handed down. Although only on
a part of the case, it is significant in that it
declares that the fact that the carton is patented
is immaterial in determining whether the com¬
pany’s plan of maintaining prices is a violation
of lawa
From these three cases, which are the latest
and most important at the moment before the
public, the crux of the limited price campaign may
easily be seen. The manufacturer who wishes to
enforce a fixed selling price is tryin.g by every
possible means to hold on to his goods until they
get into the consumer’s hands. That is, not hold
actual physical possession, but hold the title. The
reason is of course clear. As long as he holds
the title, the goods are his to do as he pleases
with, including fixing and holding the price at
which they shall be sold. To reach this result
the manufacturers license and patent and make
agreements, but the trouble with all of their plans
is that they want the cake and the penny too.
They want to sell and not to sell. They want to
collect the purchase price of their products and
and still say it is not a sale. The United States
Supreme Court and several lesser United States
courts have repeatedly said, in the last few years,
that this cannot be done. If the transaction is
really a sale, no matter what it is called, the
manufacturer is helpless to control the selling
price in the hands of anybody who has acquired
both title and possession.
There is only one way for a manufacturer to
do what he wishes to do, and that is to actually
hold title to his goods until they are sold to the
consumer. He can do that by regarding retail¬
ers as his agents and actually — not by a legal fic¬
tion, but literally — consigning his goods to these
agents, taking his pay only when they are sold.
If he is willing to do that he can control the sell¬
ing price clean to the limit, but he has not been
willing to do it up to this time, owing to the
enormous trouble and work which it involves.
(Copyright, May, 1915, by Elton J. Buckley.)
How Bunker Coal Is Stowed In Japan.
Americans traveling through the Orient and
touching at Nagasaki, Japan, have often com¬
mented upon the primitive but efficient method
of coaling ships at that port.
It is primitive, because human labor is the
only agency employed in this onerous task
and it is efficient because the results obtained
within a given time fall very little, if any, be¬
low that obtained by the use of the latest
bunkering devices.
In effect, the laborers transform themselves
into a human conveyor and the coal is trans¬
ferred from the barges into the bunkers of the
ship with marvelous rapidity.
As soon as a ship is ready to coal, about
twenty coal barges are arranged on each side
of the ship. From the barges stair-ladders are
placed, eight on each side. On each stair the
coal passers are placed facing each other, as
shown in the illustration. The laborers in the
barges rapidly fill small baskets containing
about a half a bushel of coal, which is passed
to the laborer on the lowest step of the lad¬
der. He in turn passes it to the one above
him until presently there is a continuous stream
of the small baskets ascending the ladder. The
movement is so rapid that the baskets seem
to revolve while on their upward flight. As
soon as the baskets are emptied they are
nested in threes or fours and thrown back
into the barges to be used again. Nothing is
permitted to interrupt the continuous motion
or to break the chain. A laborer getting a
piece of coal in his eye will calmly step out
of line, cover the eye with a bandage and re¬
sume his place as if nothing had happened.
By this process 900 tons of coal were re¬
cently placed in the bunkers of the steamship
Persia between the hours of six o’clock in the
morning and half past two in the afternoon.
The laborers at their work hum a song which
enables them to maintain a rhythm in their
motions. Women as well as men are employed
in this work.
A London dispatch reads : “German news¬
papers reaching here publish details of the gov¬
ernment’s scheme to control the coal industry
in Germany. A proclamation empowers the state
authorities to bring the owners of coal fields to¬
gether by compulsion in association which will
control the whole production and sale of coal. It
is expressly stated that these associations are to
be formed without the consent of the coal own¬
ers. They are compelled to place their output at
the disposal of the association from the moment
it begins operations, and for the protection of
public interests the state is given various con¬
trolling rights, particularly with regard to fi.xing
prices.”
The Human Conveyor Belts of Japan Putting Bunker Coal in the Persia.
104
THE BLACK DIAMOND
[August 7
Formation of Coal and Influence of Grades.’
According to the geologists a piece of coal was
many thousands of years ago a mass of damp
vegetable fibre, a portion of peat-bog. Half of its
weight, approximately, was water and the other
half would contain, by analysis, about fifty per
cent carbon, six per cent hydrogen, forty per cent
oxygen, one per cent nitrogen and two per cent
ash.
During successive geological ages the peat-bog
was submerged and overlaid with mud, which
hardened into slate. This was covered with
glacial and alluvial drift and it may have tilted
and upheaved by volcanic action or subsidence of
the earth’s crust. It was subjected to great pres¬
sure and high temperature and underwent a more
or less complete destructive distillation under
pressure.
The conditions under which the distillation oi
the peat-bogs took place were not alike in dif¬
ferent parts of the world. The variable factors
were time, depth, and porosity of the overlying
strata, pressure and temperature, disturbance of
the beds by floods and by intrusion into them of
minerals, such as carbonate of lime held in solu¬
tion, or clay, sand, iron and sulphur.
Therefore, the product of distillation varies in
different localities, all the way from the original
peat, through brown coal or lignite, bituminous
and semi-bituminous coal, semi-anthracite and
anthracite to graphitic coal. The last named,
which is found in Rhode Island, has nearly all
the volatile hydrocarbon gases and oxygen driven
off from it, leaving practically only fixed carbon
and ash, the carbon being in a form which is so
hard to burn that the coal is not used as a com¬
mercial fuel. The lignite, being the next stage
to peat, has lost its woody fibre, retaining perhaps
a third of its water and a large part of the orig¬
inal hydrocarbon, or rather oxy-hydrocarbon,
since it contains a large percentage of oxygen.
Origin of Coal Variety
We thus have different varieties of coal, due
to differences in the extent to which the volatile
gases have been driven off from the original peat
or other woody coal-forming substance. There
are also differences in quality in each variety, due
to varying percentages of ash and water. The
ash, or earthy matter, in the coal ranges from
two to over thirty per cent in different localities.
The water ranges from less than one per cent in
the anthracites up to fourteen per cent or more
in some Illinois coals and twenty-five per cent or
more in some lignites. This water seems to be
held by capillary attraction, or some similar force,
within the particles of apparently dry coal, so
that it cannot be driven off without heating to a
temperature considerably higher than 212° F. It
requires from 250 to 280° F. Many coals are
hygroscopic and absorb moisture from the at¬
mosphere and the quantity they will contain de¬
pends not only on the nature of the coal, but on
the relative humidity of the atmosphere, which
changes from day to day.
Classification of Coal
It is convenient to classify the several varieties
of coal according to the relative percentages of
carbon and volatile matter contained in their
combustible portion as determined by proximate
analysis. The following is such a classification :
Fixed
Vol.
Per
Carbon.
Matter.
Cent.
I
97 -92.5
3 - 7.5
93
2.
Semi-anthracite .
92.5-87.5
7.5-12.5
94
«
87.5-75
12.5-25
100
Bituminous, eastern....
75 -06
25 -40
95
r.
Bituminous, western....
65 -50
35 -50
90
f-i.
Lignites . under
50 over
50
77
^Relative value of combustible.
The location in which the several classes of
coal are found in the United States are briefly
as follows :
The anthracites, with some unimportant ex¬
ceptions are confined to the small fields in eastern
Pennsylvania, known as “Southern,” “Middle”
and “Northern,” or as “Schuylkill,” “Lehigh,”
and “Wyoming.” The area of the first is 128
scjuare miles, of the second thirty-eight square
miles and of the third 196 square miles, a total
of 472 square miles. There are fifteen workable
beds in this area, of a total thickness of 107 feet
of coal, the thickness of the measures in which
the beds are interstratified being about 3,000 feet.
The coal in all the fields follows the general
law of increasing in percentage of volatile mat-
*Paper read at the meeting of the Purchasing Agents’
Association, May 18, 1915.
i'Analytical chemist.
By O. W. Palmenberg.t
An Interesting Study of the Fuel Situa¬
tion From Its Ancient Origin Down to
the Latest Theory as to Its Use.
ter and decreasing in hardness towards the west¬
ern portion of the fields.
The anthracite fields of Pennsylvania are
grouped in five principal divisions: (1) The
southern or Pottsville field, (2) the western or
Mahanoy and Shamokin field, (3) the upper Le¬
high, (4) the northern or Wyoming and Lacka¬
wanna field, (5) the Loyalsock and Mahoopany
field.
Aside from this geological division, the fields
are also subdivided under different names and
in a different way for trade purposes, the divi¬
sions being known as regions. These are: (1)
the Wyoming region, embracing the Northern
and Loyalsock fields; (2) the Lehigh region, em¬
bracing all of the eastern middle field and the
Panther Creek district of the southern field, and
(3) the Schuylkill region, embracing the western
middle field and all the southern field except the
Panther Creek district.
Sizes of Anthracite
Much confusion and inconvenience in the mar¬
keting of anthracite coal has been, in time past,
occasioned by the want of uniformity in the sizes
of the coal produced. At a meeting of operators
from every part of the anthracite fields, held for
the purpose in Wilkes-Barre, this subject was
considered, and the following sizes of meshes
were adopted, to take effect January 1, 1891 :
Through. Over.
Grate ... .1 in. sq. or 4}4 round in. sq. or 5% round
Egg . 2 in. sq. or Syl round 2 in. sq. or 2}4 round
Stove ... .2 in. sq. or 214 round 1^ in. sq. or round
Nut . IH in. sq. or 1.^ round in. sq. or % round
Pea . in. sq. or % round in. sq. or ^ round
Buckwheat in. sq. or A round in. sq. or round
Rice . 54 in. sq. or round in. sq. or round
Barley ... 54 iu. sq. or round round
The semi-anthracites are found in a few small
areas in the western part of the anthracite field
known as the Bernice coal basin, which lies be¬
tween Beech Creek on the north and Loyalsaek
Creek on the south.
The semi-bituminous coals are found in a nar¬
row strip of territory twenty miles wide or less
on the eastern border of the great Appalachain
coal field, extending from north central Pennsyl¬
vania across the southern boundary of Virginia
into Tennessee, a distance of over 300 miles. A
peculiar characteristic of all these semi-
bituminous coals is that their combustible portion
is of a remarkably uniform composition, the vola¬
tile matter usually ranging between eighteen and
twenty-three per cent and having a composition
approaching in its analysis marsh gas, CHi with
very little oxygen. They are usually low also in
moisture, ash and sulphur and rank among the
best steam-coals in the world.
The eastern bituminous coals occupy the re¬
mainder of the Appalachian coal field, from Penn¬
sylvania and eastern Ohio to Alabama. They are
higher in volatile matter, ranging from twenty-
five to over forty per cent, the higher figure in
the western portion of the field. The volatile
matter is of lower heating value than the semi-
bituminous, being higher in oxygen, the Pitts¬
burgh vein being typical for this coal.
The western bituminous coals are found in
most of the states west of the Ohio river, Illinois
being the largest producer among these states.
There are three principal coal basins in which
this class of coal is found: (1) The Illinois basin,
extending into the western part of Indiana and
northwestern Kentucky, (2) the Michigan basin
and (3) the Missouri or western basin, covering
portions of Iowa, Nebraska, Missouri, Kansas,
Indian Territory and Arkansas, with an extension
into Texas. These coals run higher in volatile
matter and are lower in heating value than the
eastern bituminous.
Bituminous coals are sometimes classified as
caking and non-caking coals, according to their
behavior when subjected to the process of cok¬
ing. The caking coals swell and form a com-
• pact coke when heated while the non-caking coals
preserve their form and produce a coke which
is brittle.
Cannel coals are bituminous coals that are
higher in hydrogen than the ordinary coals of
this class.
Lignite or brown coal includes all varieties
which are intermediate in properties between peat
and coal of the older formations. It is usually
of brownish color, is non-caking, and high in
moisture and ash. The best varieties are black
and pitchy and resemble greatly true coals in ap¬
pearance. They contain large proportions of
water and of oxygen, and their heating value is,
therefore, much lower than that of true coals.
Method of Coal Purchasing
Prior to about the year 1900 coal was mined
and sold without laying much stress upon the
grade. There may have been a few large con¬
sumers who submitted their shipments of coal
to investigation and analysis. The majority,
however, even to this day, buy coal principally
as a black material for the production of steam
without giving much attention to the quality from
the standpoint of chemical analysis. At that time
there were not many records available showing
the value of the various grades of coal offered
upon the market, and in transacting coal sales
the worth of a coal had to be gauged principally
by reputation.
Where small installations requiring little
power were predominant this method of purchas¬
ing coal was perhaps permissible, but when
larger units began to develop, and the output of
power centralized, bringing with it a large con¬
sumption of coal, the difference in the quality
and grade of various shipments of coal became
very evident. It was at the time when these
larger units for the production of power were
put in operation that the method for a close in¬
spection of coal was introduced.
As an illustration of this kind the Interborough
Rapid Transit Company may serve. Prior to the
building of the large power station necessitated
by the electrifying of the Elevated Railroad, there
were a great number of power units in the form
of locomotives consuming coal, and these being
small, variations of the coal would not be very
noticeable.
But after the completion of the large power
house, where a vast amount of coal from a large
storage bin was fed to >a battery of boilers and
the units of power produced, compared to the
coal supplied, were under observation, any-
marked variation of the grade of coal could be
noticed. It was soon found that a uniform grade
of coal would produce the best results. These
facts led to the installation of chemical laborato¬
ries as a necessary part in the operation of a
large power plant.
So it happened with the Interborough Rapid
Transit Company, and after a year or two of pre¬
liminary study a method was worked out whereby
specifications were issued calling for competi¬
tive bids for coal, the deliveries of which would
be subject to chemical analyses and the price paid
in accordance with the actual worth of the coal
as a steam producer.
To my knowledge, very few other concerns
bought coal at that time in this way and it was
not till after the investigations which were con¬
ducted under the supervision of the LTnited States
Geological Survey at the St. Louis exposition in
1904, that the United States government took up
the purchase of coal on the basis of chemical con¬
trol. At that time an act of congress provided
for the appropriation of $60,000 to be used for
making boiler tests and analyses of coals and
lignites of the United States.
After this time, considerable publicity was
given to the purchase of coal on a specification
basis controlled by chemical analysis,^ the conse¬
quences beipg a regular revolution in the coal
trade. Analyses of coals were made in every
imaginable way and a most disturbed condition
was produced. Coal dealers not being familiar
with the meaning of such analyses, have suffered,
others have gained. Consumers, who had anal¬
yses of coals submitted to them often were
misled, in the selection of the proper fuel, and
so it is today except that a better general knowl¬
edge in the sale and purchase of coal exists in
this line of trade.
Where coal is juirchased on the basis of a
chemical analysis, the essential features are first,
proper selection of fuel to meet furnace condi¬
tions, which should be ascertained by making
boiler tests, and second, proper method of
sampling the coal shipments so as to obtain a rep¬
resentative sample.
1 have found that the great number of dis¬
putes and criticisms arising against the method
of purchasing coal on a b. t. u. basis can be
traced to the faulty method of sampling. As a
No. 6]
105
rule, specifications are drawn up and every pos¬
sible care is given to the penalty and premium
clauses, but the sampling end is dealt with in a
superficial manner. The proper method of select¬
ing a representative sample must suggest itself
from the conditions as they are given. The de¬
cision of a method must be left to a responsible
party who is familiar with the variations pro¬
duced in the sampling when shipping _ different
kinds of coal. Each case is a study in itself and
should be worked out carefully by the chemist.
As an example to show how variations rnay
occur in sampling coal I will cite the following
experience. This was with semi-bituminous coal.
Coal was shipped by two companies to two plants
and each plant consumed about the same amount
and received the shipments in cargoes of like
amount. The two coals were of a different qual¬
ity. The method of receiving and unloading the
coal was the same for the two plants and briefly
as follows : A clam shell bucket would hoist the
coal to a receiving hopper at the top of the coal
tower, from here it passed over a screen and all
lumps of coal passing over the bars were crushed,
whereupon the crushed and slack coal would
meet again and fall into a pair of weighing hop¬
pers, which would be filled alternately. On the
side of the weighing hopper there was attached
a trough which would allow a definite amount of
coal to drop in during the charging. The hopper
had a false bottom, which when opened, allowed
the coal to drop to a conveyor which carried it
to the bin. Upon emptying this hopper, the coal
sampler would automatically discharge its por¬
tion of coal into a barrel. In this way frorii an
800-ton cargo a gross sample was obtained weigh¬
ing between 1,500 to 2,000 pounds of coal. Each
time the barrel was full, which represented about
200 pounds of coal, this coal was spread out on a
clean concrete floor, crushed, mixed, piled and
quartered. Opposite quarters were discarded and
the remaining coal crushed, mixed, piled, etc.
This was done with each barrel full and the
small sample from each barrel (representing
about ten pounds) was placed in a receptacle. In
this way a composite sample was obtained from
the different barrel-fulls. This composite sam¬
ple was then mixed, crushed and prepared for
the laboratory. Even taking all this care, it hap¬
pened that the coal from the one company showed
about 100 b. t. u.’s higher at one plant than the
other, and with the other coal, the reverse was
noticed. Not till after much investigation was
it found that the cause for the variations was
due to the fact that the opening on the side of
the hopper for the sampler was in a different re¬
lative position to the chute, from which the coal
dropped against the side of the coal hopper, and
that the impurities of the two coals were of dif¬
ferent physical character, and the arc of the
falling particles of coals were different.
The coal which had hard impurities gave high
ash, where the arc struck the sampler high, and
low ash with the coal in which the lump coal
predominated. By changing the position of the
sampler to correspond to that position where a
number of check samples taken in different ways
from the boats would give similar analyses, the
trouble was corrected. If, however, only one
plant had been in charge this difference in anal¬
yses might not have been detected so readily.
This case may serve to explain why at times
the analyses at one plant differ so much from
those as shown by a coal shipper, where deliver¬
ies of the same coal have been made to some
other plant. If a certain method of sampling is
to be chosen, it must first be checked by taking a
number of samples in different ways to determine
whether the method is correct and gives consist¬
ent results.
Limitations of Chemists.
Another cause for disputes often lies in the
fact that the chemist who should supervise the
process of sampling is confined to his laboratory
due to the large amount of work he may have to
perform. The analyses are made on prepared
coal samples of which he has no information and,
although both parties may be performing their
work apparently faithfully, gross errors are often
made, which could be avoided by making this
process co-operative. A case of this kind was
brought to my attention some time ago.
Upon investigation I found the method of ob¬
taining the coal sample apparently good, but the
person in charge of preparing the sample for the
laboratory was not doing his end properly. The
chemist had been receiving a jar of pulverized
coal, but never attended the preparation of the
sample. The man had been told to pulverize the
sample to pass a certain mesh sieve. The coal be¬
ing hard, A No. 1 Buckwheat coal, this gave quite
some trouble and took time and the consequence
THE BLACK DIAMOND.
was, to get through with the work, the sampler
would crush the coal, sieve it and discard what
did not pass through the sieve. Then a new por¬
tion of the sample was treated in the same way
and enough sieved coal obtained to fill the quart
jar. By doing this, it happened that the ash con¬
tent of the coal was increased between three and
five per cent, due to the fact that the coal was of
such a nature that the slate broke more readily
than the coal.
Had the chemist been on the job, this fault
would no doubt have been detected and would
have prevented a lot of trouble. You will see,
therefore, the importance of having the sampling
of coal looked after properly and what great
care must be exercised in doing this work rightly,
not leaving it altogether to some irresponsible
party who knows nothing about the intricacies of
coal sampling.
Coal Specifications.
A coal contract which embraces specifications
calling for coal analyses should be made in such
a way as to be fair to both the consumer and the
contractor. There are many types of coal speci¬
fications and all sorts of conditions are exacted.
Some are good, many are bad and few are applic¬
able to different plants. Before formulating coal
specifications embracing analyses, considerable
preliminary study is necessary for each case and
to make a contract indiscriminately without giving
the subject proper study is bound to lead to dis¬
content on the part of the contracting parties and
poor results in the boiler plant.
Besides the usual form of coal specifications
embracing chemical analysis, within recent years
the fusing test showing at what temperature coal
ash melts, has become of great importance and is
being applied as a gauge when purchasing coal.
There is no question that this new move is in the
right direction, for the fusing test throws much
light upon the most important physical character¬
istic of coal. There remains, however, much to
be learned in connection with the application of
this test to the purchase of coal. This subject is
naw being investigated and I hope it will not be
long before the laboratory test will be applicable
to practice. It has been a common practice to
judge the clinkering quality of a coal by its sul¬
phur and iron content, and even today too much
stress is laid upon the sulphur in coal, when se¬
lecting a fuel for steaming purposes. With some
coals the constituents of the ash may be a gauge
for judging the value, but often much harm is
done by adhering too closely to this practice.
Operating conditions and type of furnace must
be considered when selecting a coal. To debar
a coal from being used simply because it may be
high in sulfur, without taking into consideration
its state of combination and effect of combustion
under given furnace conditions, is a wrong policy.
The sulfur in the coal may be in such a state that
it does no harm whatever. In fact, the sulfur
as such has no bad effect and it is only the iron,
after the sulfur has been set free, that may cause
clinkering trouble. I have shown by careful in¬
vestigation that the iron and sulfur are no gauge
for the clinkering quality of a coal. High sul¬
fur and iron coals may clinker but there are many
coals low in these constituents that clinker also.
A fusing test in this case will give a valuable
index as to the clinkering quality. If the aver¬
age working temperature of the furnace is known,
which can easily be ascertained, it is then quite
possible to pick the coal most suitable, providing
the fusing temperature of the ash is know'n, so
that with a fair degree of accuracy the ex¬
perienced person can tell which coal will be most
suitable for fixed furnace conditions.
Storage of Coal.
The storage of coal is a very important factor,
when coal is purchased in large quantities and
considerable study has been given to this question.
The kind of coal and its nature, from a chemical
and physical standpoint and the conditions of¬
fered, will suggest which is the best method to
select for storage. Here in the east the weather¬
ing of coal does not come into consideration for
most coals used are of such a nature that they
do not lose materially when stored for a long
period of time. It has been determined that the
loss in b. t. u.’s is 1 arely more than one per cent
on coals used in luis section of the country. A
more serious pr, position, however, is the oxida¬
tion to which all coals are subject, and the con¬
sequent spontaneous ignition of a coal pile. Spon¬
taneous combustion is brought about by slow
oxidation in an air supply sufficient to support
oxidation, but insufficient to carry away all the
heat formed. The area of surface exposed to
oxidation by a given mass of coal determines
largely the amount of oxidation that takes place
in the mass ; it depends on the size of the par¬
ticles and increases rapidly as the fineness ap¬
proaches that of dust. Dust is, therefore, dan¬
gerous, particularly if it is mixed with lump coal
of such size that the interstices permit the flow
of a moderate amount of air to the interior.
Coals differ widely in friability, that is, in the
proportion of dust that is produced under like
conditions of handling. This variation of friabil¬
ity is a factor in effecting the liability of spon¬
taneous combustion. Sulfur and moisture do not
necessarily have any bearing upon the spontaneous
combustion of coal. Coal piles, which have been
on fire, have shown that even at places where the
heat was greatest both the total sulfur and that
in the sulfate or oxidized form had shown very
little change. This change amounts to less than
twenty-five per cent on an average and shows that
less than one-fourth of the total sulfur had en¬
tered into the heat-producing reaction.
A very usual cause for spontaneous combus¬
tion may be traced to local heating, such as when
a steam pipe has been covered with the coal or
it has been deposited in a pocket of a bin ex¬
posed to heat without sufficient ventilation. Coal
piles should be kept low, preferably not over 10
or 12 feet high and turned over once or twice a
year if the nature of the coal is such to induce
spontaneous combustion. Although it is not
essential to cover the coal with a shed, this prac¬
tice suggests itself from an economical stand¬
point, since the coal will be less wet when fired
and, therefore, more heat units per weight of coal
burned will be available. The expense for such a
covering will often pay for itself in a very short
time.
I have endeavored in the brief time allotted to
me, to bring before you gentlemen, a subject in
which all of you are more or less interested, but
there would still remain much that I am not able
to say this evening. Although a tremendous stride
has been made by the endeavors of those who are
engaged on problems pertaining to the economic
use and proper method for selecting fuel for vari¬
ous purposes, still there remains a vast amount
of knowledge yet to be acquired.
I have not touched upon the subject of coal
preparation and methods of mining, since this
would be more of interest to the coal operators
than the coal purchasers, but still if this matter
were given more attention and there existed a
better mutual understanding between the man
who produces the coal and he who uses it, far
different and more efficient results would be at¬
tained in many cases.
Coal is one of Nature’s most bountiful gifts,
but it remains to man to learn how to use it, al¬
ways bearing in mind that economy should be
the foremost thought, for its nature is such, that
when once consumed, it is irretrievably lost.
Communications.
Coke Ovens — Chattanooga Gas & Coal
Products Company.
Editor The Black Diamond;
Your reference to above ovens erected by
the “American Coal & By-Products Coke
Company” of Chicago, Ill., in your issue of
the 24th instant, is somewhat in error.
The principle of heatin.g coke ovens from
the top is covered in m,y United States patent
of May 3, 1912; Serial No. 607148. At this
time, I assigned one-fourth interest to Mr.
Roberts and one-fourth interest to Mr. Ander¬
son. The latter, Mr. Edward Anderson, is
well and favorably known amongst coal men.
Later the “American Coal & By-Products Coke
Company” was formed to take over the patent.
It was tested out for over two years at the
Gary Steel plant, Gary, Ind. The Chattanooga
contract is the result.
The writer does not care a snap regarding
the name of the oven, because all patents or
future patents on coke oven construction be¬
come the property of the Chicago or parent
company of which Mr. E. M. Bowman is
president. Such an arrangement makes all in¬
terests mutual for the success of this company.
But, protection of interests from the obvious
intent conveyed in the notice above referred
to is plainly yet unfortunately made necessary.
Years of study and practical application to de¬
velop a new type of by-product coke oven,
along true fundamental principles, is entitled
to protection, as well as substantial recogni¬
tion.
R. S. Moss, Consulting Expert.
American Coal & By-Products Coal Co., Chi¬
cago, Ill.
106
[August 7
THE BLACK DIAMOND.
A Machine Which Mines and Loads Coal.
For the last eight or ten years Pittsburgh re¬
ports have declared at frequent intervals that
“H. A. Kuhn has invented a machine which will
mine and load coal without hand labor.”
Sometimes Mr. Kuhn found himself in Mark
Twain’s position when, in London, he received
an American cable asking if it were true that he
had died. At other times the reports were liter¬
ally true. He had invented such a machine and
it would mine coal. But something was wrong
with it ; maybe it cost too much to run it. Thus
year after year the reports spread, but they never
were sanctioned.
Two weeks ago Mr. Kuhn, himself, made the
announcement ;
"rve that machine now. Mechanical mining
in a practical sense is a fact. If you’ll come
down to Pittsburgh I’ll show you how it works.”
“How much of a fact? What has it done?”
“I’ve worked several of the last design nearly
every day for a year and a half and they are still
going. I’ve let everybody run them — machine
men, boys, drivers and careless men — and no one
has been able to break them. I’ve asked them to
try to break them and they could not. I’ve let
t:oo tons of slate and rock fall on top of one, and
it not only was not damaged but backed out from
under the fall and loaded the slate and rock into
the pit cars in a short time. I’ve run these me-
chines into horsebacks and they took them out.
I’ve run them in fifteen to eighteen inches of
water and they mined coal just the same. I’ve
run them on hard floors and on heaving bot¬
toms ; they worked as well in one place as the
other. I’ve mined short walls and long walls
with them. I’ve used them in straight mining
and pillar drawing to equal advantage. I’ve
driven entries with them and I’ve made them
turn corners at right angles in a nine to ten
foot entry to get at coal or mine break¬
throughs. The machine has never failed and it
has never been broken. And, they produce coal
at a cost of less than half the present cost in a
district where the average cost is about fifty-three
cents and at an additional power cost over present
power costs under present methods with hand
labor of seven-tenths of a kilowatt hour per ton
of coal placed in the pit wagon.”
“There are some other advantages accruing
to the operation of these machines in coal mining;
The areas of mine operations are made smaller
by about eighty per cent. Accidents and injuries
to miners are minimized, as the men do not have
to work at the face, nor work under underlying
slate, and there can be no “blow out” shots. The
roof is not disturbed by mining with this machine
— roof-falls will be largely eliminated as com¬
pared with falls of roof occurring under the
present practice of placing powerful shots on the
roof line. The cost of ventilating, pumping, mine
roads, wiring, hauling and other underground
costs are largely reduced on account of concen¬
tration of operations underground to one-fifth of
the area necessary to operation under the present
mining methods.”
If all that were true, only one statement accu¬
rately describes the situation — a revolution in coal
mining was at hand. One of those major changes
was about to be seen in the trade which spelled
the beginning of an epoch. The most natural
thing to do was to challenge the statements but
that was neither fair nor safe when a man has
spent years and more than $100,000 to one end.
So I accepted the invitation and went to Pitts-
bungh to see the machine work and to study it.
I will tell here only what I saw.
We drove from Pittsburgh twenty miles to
the Blaine mine. Some distance from the main
bottom and near the outcrop one section of the
mine was set aside for mechanical mining with
these machines. We passed in through entries
that had been driven by the new machines. We
went into rooms which they had opened and
worked. We saw places where they had driven
l)reakthroughs. We passed one place where pil¬
lars had been drawn by them. Then we came
to the machine itself.
My first impression was that I was looking at
the rear wheels of an auto truck with some extra
machinery — not much — between. It looked as
though a platform had been built on top; because
the front wheels were missing. This was resting
on the floor in front and was, consequently, ele¬
vated behind. I should say that this platform
was sixteen or eighteen feet long and six and a
half feet wide. It stood about five feet tall.
Two men were there to work it. It was eleven
o’clock in the morning. That last is an important
detail, as the further recital will show.
H. A. Kuhn of Pittsburgh, After Years of
Study, Produces a Machine Which Prom¬
ises to Open a New Epoch in Coal
Mining.
One workman moved one lever which released
an automatic catch. Instantly a modified design
of an ordinary undercutting machine, which was
perched upon the platform and in the center,
moved down the incline to the floor and in the
regular manner made a cut across the eighteen
foot face. By 11 :20 this work was finished and
the mining machine, moving under its own power,
had climbed back upon the platform ; it was
fastened in place by the automatic catch.
The same motor which had driven the under¬
cutting machine was then thrown into gear with
a drill — a part of the Kuhn machine — and
mounted on the right side of the platform. With
the two men directing the bit, three six-foot
holes were drilled in the face. In five minutes —
ordinarily it takes less than four — this work was
done and the drill was put to one side.
Another lever threw the same motor into an¬
other gear, which hoisted the front end until the
platform was horizontal.
The motor was next thrown into gear with an
arm above and on the right hand side of the
platform. This was about eight feet long by
fifteen inches across. It was set parallel with
the platform and on edge. Encircling it was a
motor driven chain set with the bits used on
undercutting machines. As this chain revolved
around the frame the arm was advanced into the
coal. Thus a cut eighteen inches high and six
feet deep was made in the center and at the top
of the seam. When this incision had been made,
the platform was lowered gradually and as the
chain continued to revolve a vertical cut was
made in the center of the room. My recollection
is that this took about eight minutes.
The holes were then charged and tamped. The
workmen used one-half the amount of powder
required in an ordinary shot.
When we returned to the room very little coal
had fallen. I should say, offhand, that about
five to seven per cent of the coal was down. But,
even to the untrained eye, it was evident that all
the coal wliich had been undercut and sheared
had been loosened. For instance, the coal had
moved laterally enough to close the opening made
by the vertical cut. Also, the natural lines of
cleavage were rather sharply marked and here
and there small open cracks were seen.
The work of loading began at this point. The
spectacle presented in the next few moments was
one which I shall not forget soon, for in that
demonstration I saw the coal miniag method of
the world begin to undergo a gradual change.
Let me present the picture as I saw it.
The front end of the platform was resting on
the floor; the rear, standing about five feet high,
was over the pit car. The wheels — built like
those of a traction engine and about six feet
apart — were revolving slowly while the workmen
put the machine in exactly the right position to
attack the pile of coal. The busy wheels, the
slanting platform and all that reminded me of a
bustling big rooster scratching and pecking in the
dirt.
The mechanician raised a lever immediately in
front of him on the left-hand side of the machine
and the front of the platform moved over against
the right-hand wall. The rear of the platform
was still over the pit car.
He pulled another lever on top and the coal
bevgan running up a channel which runs along the
left-hand side of the platform. This seemed com¬
plex at first but, like everything else about the
machine, it is perfectly simple. That is, the outer
portion of the platform has been turned into an
excavator. An opening is made under the coal ;
into this opening the end of the platform is
shoved by the simple act of moving the whole
machine forward a few inches.
The coal, naturally, falls upon this platform
and is carried to the pit car.
At the upper end of the platform the revolving
arms run over an opening. Through this the
coal falls into the pit car.
I timed this operation. The first pit car, which
held three tons of coal, was loaded in a little less
than three minutes. Therefore — it was a simple
problem in mathematics — the loading speed was,
in straight coal, a little better than a ton a minute.
The mechanician pulled up a second lever and
the machine moved cautiously but resistlessly
into the face. There the end of the platform
encountered what seemed to be a solid block of
coal. The instant this machine made its attack,
a quiver ran through the column of coal from
top to bottom. A succession of shocks were
given that coal column, in regular succession, and
with each one a veritable wave of action was
seen in the block of coal. When this had been
repeated several times small columns broke loose
from the mass and fell upon the front of the
machine. The whole machine was then backed
away a few inches and loaded out this coal in
the manner already described.
In that wave action transmitted to the coal
lies the bi.g point of the whole machine. That
is, instead of using a large amount of power to
break down the coal, only enough is used to
move it out of its native bed after its main
cleavage lines have been released by shock, and
this shock is produced by about one-half the or¬
dinary amount of powder so applied as not to
affect the roof. Then, an undulating motion is
applied to complete the break, which is tremen¬
dously interesting.
By this arrangement coal is loaded out con¬
taining about seventy-five to eighty per cent lump.
This is equal to the result obtained by the best
hand mining.
Before the big machine had completed the
work of taking the coal across that eighteen-foot
face I had a chance to see it put through one
of its “stunts.” To the left of what had been the
vertical cut there was a column of coal about
six feet across, about six feet high and about
three feet thick. It was a solid block upon which
the powder had for some reason but little or
no effect except to release it from the face and
rib. On top of it was poised an ugly looking
slab of slate which was fully a foot thick and
several feet across in either direction. It was
evident that to take out that coal would allow
the slate to fall.
The machine runner had no fear of being
caugbt when it fell, for he was at least ten feet
away. His helper was in the rear of the machine
trimming the pit car. So, the machine tackled
the solid block of coal. The undulating motion
passed under it but only raised without breaking
it. The end of the platform was raised a little.
This lifted the block clear of the floor and let it
fall, but still no break occurred. The only effect
was to move the bottom of it forward and to let
the top fall back against the face.
When that was done the piece of slate — it
weighed about a ton and a half — came tumbling
down upon the front end of the platform. It
struck a sort of fender, which is thrown up over
the cutting arm of the mining machine to ward
off such blows. This had no effect on the machine
whatever. Instead, it continued to load coal off
the floor as though nothing had happened. When
that part of the work was done, the machine was
backed a little, or enough to allow the piece of
slate to fall upon the mechanism of the drag
line conveyor. Thereupon the direction of the
revolving arms was reversed and the big piece
of slate was carried to one side of the room in a
few seconds and without human effort. The
slate was moved entirely out of the way when
the machine’s nose was turned a little to the
right and thus nudged over against the rib.
The loading of coal was then resumed. Two
or three charges of the stout machine against the
big lump were successful in breakin.g it Up.
Mr. Kuhn and the workmen wanted to show
me what the machine could do, so they did more
at certain stages than was really necessary. Also
it took time to explain to a novice the different
parts of the mechanism. Also they took a little
extra time to prove its simplicity and its rugged¬
ness by letting me run it. Further, we had to
wait once or twice for pit cars. Nevertheless, by
half past one o’clock we were out of that room
and were examining the workings at other places.
By two o’clock we were in the automobile and
were headed back to Pittsburgh.
Here is the record : From eleven o’clock until
a little after one we had loaded out five three-ton
pit cars and three two-ton pit cars of coal and
one two-ton pit car holding about four tons of
slate — twenty-one tons of coal and four tons of
slate.
Mr. Kuhn claims for this machine only three
cycles and perhaps a half in a day. I am con¬
vinced that, without working hard or rushing
things, it can easily complete four cycles in eight
hours, especially where slate is not bothersome.
That would mean eighty-four tons of coal and
No. 6]
THE BLACK DIAMOND
107
sixteen tons of slate in an eight hour shift. If
working in coal alone, it would easily mean
eighty to one hundred tons in a shift.
On the way back to Pittsburgh we began to talk
costs. Mr. Kuhn made a computation, a com¬
parison and an analysis. In the Pittsburgh Thin
Vein district the actual average labor cost of
mining coal is from fifty-two to fifty-three cents
a ton. (This does not include roads, pumping,
ventilating, haulage, hoisting, outside or overhead
costs, of course.) With this machine the labor
cost is less than half the present cost, as any basis
of computation will show. Anyone can operate
the machine, as the last three years have been
spent solely for the purpose of standardizing
parts, and to give it simple controls that make it
“fool-proof.” Each important feature is protect¬
ed by a slipping clutch, and back of that the
whole machine is protected automatically from
injury. An ordinary workman by keeping the
machine busy (which is light work) may earn
from forty to sixty cents per hour or better. The
The announcements of the Sixth Annual Con¬
vention of the National Commissary Managers’
Association, to be held at the Hotel Gibson, Cin¬
cinnati, August 24, 25 and 26, have just been
issued.
From reports and the number of acceptances
already received, the Sixth Convention promises
to have more interested parties in attendance than
any other ever held.
Coal mine companies everywhere have sanc¬
tioned the going and will pay the expenses of
their commissary managers. The Consolidation
Coal Company of Fairmont, W. Va., has author¬
ized the attendance of six division store man¬
agers, and the Tennessee Coal & Iron Co. has
done likewise. These two cases and the accept¬
ances of many mine stores managers evidence the
realization upon the part of coal companies every¬
where of the benefit they derive in having their
commissary men attend these conventions. Every
mining company, no matter where located, operat¬
ing a commissary store in connection with their
mine, should authorize the attendance of their
store managers and commissary buyers. The ex¬
pense is an investment returning many times the
cost of the trip to the coal company.
Ever since the organization of this association
at Baltimore in 1910 a growing interest has been
manifested in its activities and especially its an¬
nual convention to which are attracted the man¬
agers of company stores operated by sawmills and
mining institutions throughout the country. The
fundamental purposes back of the association
work are to promote the welfare of the commis¬
sary trade and to increase the individual efficiency
of commissary managers. “Increased efficiency
through cooperation” is the motto of the com¬
missary men and anyone who has attended any
convention in the past knows what a serious and
sincere effort they make to help each other at
these meetings.
For the coming meeting at Cincinnati an ex¬
cellent program has been arranged — “the best in
our history,” says the official announcement just
issued from the office of the secretary, Tracy D.
Luccock, 801 Manhattan Building, Chicago.
There will be three morning sessions and one
afternoon session. Among the speakers and a
brief outline of their subjects are:
F. C. Gifford, Chicago, secretary National Asso¬
ciation of Box Manufacturers, who for many
years has been a careful student of industrial ac¬
tivities and who will speak from a wealth of ex¬
perience and observation on “How the Commis¬
sary Manager Can Assist the Operating Com¬
pany.”
Frank Stockdale, Chicago, Lecture Service Sys¬
tem Magazine, whose blackboard talk on “Keeping
Up with the Rising Costs” is an exceedingly help¬
ful and illuminating analysis of the problems of
retailing and the cost of doing business.
H. S. Youker, Philadelphia, assistant manager
division of commercial research, Curtis Publish¬
ing Company, whose first hand investigations of
the retail field covering the entire country emi¬
nently qualify him to speak authoritatively on his
subject, “Retail Merchandising.”
Anderson Pace, Chicago, secretary Produce
Terminal Corporation (formerly industrial com¬
missioner Chicago Association of Commerce),
whose success in many departments of merchan¬
dizing work has been conspicuous ; a brilliant con¬
vention leader. Subject: “Personality in Busi¬
ness.”
R. H. Grant, Dayton, sales manager National
Cash Register Company, a man of wide selling
expense of operating the machine other than labor
cost is :
Power — 1 cent per ton of coal.
Powder — kz cent per ton of coal.
Interest, depreciation and repairs about 3 cents
per ton of coal.
Including these charges the cost is about one-
half the present mining cost. There is no dead
work or yardage, as the machine drives narrow
places almost as cheaply as wide places.
What is said here does not end this remarkable
story by any means. There is still to be told
the theory upon which it was constructed; the
experiments with other machines; the influence
upon future conditions and a little about the
somewhat remarkable and certainly interesting
man who worked it out. The telling of all that
will be undertaken in due time. The task of
the minute is to show that mechanical mining is,
at last, a fact, and then to tell just what sort of
a machine it is that does the work. That part of
it has consumed this article. The Editor.
experience and a gifted speaker ; a human dy¬
namo. Subject: “Salesmanship.”
J. W. Fiske, Detroit, director selling service,
J. L. Hudson Company (formerly manager Dry
Goods Economist training school), who began his
merchandising career twenty years ago in a lum¬
ber commissary ; one of the country’s leading
store experts. Subject: “Better Management
and Better Salesmanship.”
At the Tuesday afternoon session the annual
experience meeting will take place, embracing five-
minute talks by commissary managers and a gen¬
eral discussion of the following subjects:
How to manage clerks to win their loyalty and
increase their efficiency. (Can a commissary
F. M. Meadows.
manager have a greater asset than harmony and
enthusiasm among his clerks?)
Building bigger business in the commissary, in¬
cluding a discussion of sales plans, contests, ad¬
vertising schemes, bargain days, special sales, dis¬
play — window and inside, winning the trade and
good will of difficult customers, show cards and
bulletin boards, meeting and heating competition,
turning prejudice into confidence.
Importance of departmentizing the commissary.
Methods of making the store more inviting.
Fundamentals in buying merchandise.
The variety department.
The meat department.
Methods of cleaning out old stock.
Planning for the Christmas trade.
The delivery department.
_ Putting character and “punch” into your adver¬
tising. *
Cost of doing business.
Advantages of a uniform accounting system for
commissary stores.
How inventory helps and hurts.
Experiences with coupons, metal checks, scrip,
etc. Their comparative advantages.
Credits and collections ; installment plans.
Refrigerating systems and ice plants.
Farm trade.
Throughout the convention a question box will
be ready to receive from the commissary men
suggestions for subjects and questions to be dis¬
cussed. The box will be opened and the questions
discussed at one of the sessions under the
auspices of a special committee. In this manner
it is expected that every subject of interest and
problem concerning commissary management will
receive attention for the mutual benefit of all pres¬
ent.
A big feature of the convention will be the
merchandise displays. Two entire floors of the
Hotel Gibson will be used for this purpose. Fifty
leading manufacturers and jobbers have arranged
for space and will exhibit their lines, thus afford¬
ing managers an excellent opportunity to get a
line on “what’s new” and “what’s best” for their
stores. These are being prepared at the urgent
request of the officers of the association and they
will be so handled as to interfere in no way with
the business sessions.
The social side will not be neglected. Elaborate
entertainment plans are being made by the Cin¬
cinnati business men, including a banquet, an eve¬
ning at Chester Amusement Park, a vaudeville
performance with Dutch lunch, etc. In addition,
there will be special entertainment features for
the ladies.
The officers of the association are :
President — F. M. Meadows, Continental Coal
Corporation, Pineville, Ky. A photograph of Mr.
Meadows is shown herewith.
Vice-President— G. A. Musson, Weed Lumber
Company, Weed, Cal.
Vice-President — Herbert Moss, Carter-Kelly
Lumber Company, Manning, Tex.
Vice-President — A. W. Dowling, Hilton-Dodge
Lumber Company, Belfast, Ga.
Vice-President— John I. Bellaire, Wisconsin
Land & Lumber Company, Blaney, Mich.
Vice-President — J. Milton Bailey, Bailey Lum¬
ber Company, Penland, N. C.
Complete program announcements and conven¬
tion information may be obtained from the secre¬
tary, Tracy D. Luccock, 801 Manhattan Building,
Chicago.
Sunday Creek Co. Changes.
Taking effect August 1st, the traffic department
was consolidated with the sales department, with
Sales Manager Coen in charge of both. This fol¬
lowed the resignation last week of C. F. Mayer,
who has been at the head of the traffic bureau for
the past ten years. As Mr. Coen has had a rail¬
road experience, the change is expected to mean
no loss of efficiency and will be in the interests
of economy. The complete divorcement of the
company from railroad association makes a sep¬
arate traffic bureau less necessary. Mr. Mayer was
formerly assistant freight agent of the Hocking
Valley Railway Company, and besides being a
man of lar.ge energies, is recognized as an expert
in his line of work.
Ohio has been practically abandoned for the
time being by the Sunday Creek Company, its
mines on the Toledo & Ohio Central having been
closed within the past week, as was anticipated
when those on the Hocking Valley were shut down
recently. While adverse railroad rates, lack of
demand for lake coal, and the generally depressed
business conditions are in a way responsible for
the company’s action, it is stated that the closing
of the mines is primarily a lockout against the
miners’ union, until the Hocking Valley is granted
as favorable a mining scale as now exists in
eastern Ohio. The claim is made that the con¬
cessions in working rules granted the latter field
virtually give it a differential over the Hocking
of from ten to fifteen cents a ton. Agitation over
the matter between the miners and the Hocking
operators has not yet passed the letter-writing
stage, but it is thought that a conference may be
held in the near future.
It is further announced by the Sunday Creek
Company that its sales force will be kept intact
in the interests of the important jobbing depart¬
ment which it recently established, including
anthracite. All salesmen are now covering their
territories as usual, with very satisfactory re¬
sults it is said, considering trade conditions.
The Toledo boys are determined that their
picnic at Sugar Island next week shall be a
complete success and have put out some very
handsome illustrated advertising hangers, calling
attention to the affair which will take place next
Tuesday. The ball team will rival professionals
if the promoters are to be believed and consider¬
able jealousy has been manifested because of the
selections made to fill the different positions. An-
tone Bueschen refuses to divulge whether or not
he has secured an airship for the trip this season.
It will be remembered that is what he was com¬
pelled to do last year when he missed the boat.
Commissary Managers Meet.
108
[August 7
THE BLACK DIAMOND.
Bids for and Contracts Let on Coal.
New York Bids.
Bids were opened on Monday by the Board
of Education of New York City for furnishing
17,77") gross tons of No. 3 buckwheat and 5,!)2')
tons of bituminous, run of mine, for certain
school buildings in the l)oroughs of iManhattan,
Bronx, Brooklyn and Queens, deliveries to he
made from August 1(5, 1915, to March 31, 1916.
Bids were as follows :
Buckwheat
No. 3 Mine Run
Manhattan — 8,250 tons 2,750 tons
Burns Bros . $3.04 $2.93
\Vm. Farrell & Son . 3.39 4.23
C. D. Norton & Co . 2.98 3.73
Norton & Co. offered a rehate of one cent per ton
if the city furnished dock facilities free.
Buckwheat
No. 3 Mine Run
The Bronx — 3,000 tons 1,200 tons
Burns Bros . $3.14 $4.03
C. D. Norton & Co . 3.23 4.03
Norton Co. offered a rebate of one cent per ton if
the city furnished dock facilities.
Buckwheat
Brooklyn —
No. 3
4,1)50 tons
Mine Run
1,050 tons
Gavin Rowe .
$4.12
C. H. Reynolds & Son....
S. Tuttle’s Sons & Co....
. 2.00
3.58
. 2.04
4.04
Bacon Coal Co .
. 2.70
3.81
A. T. & T. T. McCollum. .
. 2.90
3.73
\V. P. W. Ilaff .
. 3.11
3.71
Rowe offered a rebate
of
one cent ner ton if free
dock facilities are furnished.
Buckwheat
No. 3
Mine Run
Queens—
975 tons
325 tons
Gavin Rowe .
. $3.47
$4.22
C. H. Reynolds & Sons. .
S. Tuttle’s Sons & Qo....
. 2.70
3.68
. 3.23
4.18
Bacon Coal Co .
. 3.11
4.16
A. J. & J. J. McCollum..
. 3.20
4.05
Rowe offered a rebate
of
one cent per tone if free
dock facilities are furnished.
It will he noticed that there were a small num¬
ber of bidders, and that the names of several well
known companies that usually make a hid for
city contracts, do not appear above. It is under¬
stood that some of these companies declined to
tender bids under the new specifications that coal
is now being purchased under, stating that they
cannot secure coal to fit the stringent specifica¬
tions.
.'\ 4,()00-ton contract with the Peru, Ind., water¬
works has been taken by the Wyatt Coal Com¬
pany on its Main Island Creek coal. The con¬
tract covers run of mine and usually takes 6,000
tons to complete it, and may do so this time, the
extension being covered by a “more or less”
phrase in the contract.
The Lorain Coal & Dock Company has been
awarded the Ohio State University coal contract,
amounting to 15,000 tons, at $1.19 per ton, on
nut, pea and slack, delivered at the university
switch, Columbus. The coal is to come from the
new operations of the company in Logan county,
W. Va. There were some twelve bidders, the
contract being made on a heat unit basis. The
Lorain people secured the business over a lower
bid per ton of several cents.
Bids have been opened by the city of Colum¬
bus, Ohio, for 12,000 tons nut, pea and slack
for the workhouse, 6,000 tons mine run for the
Scioto river pumping station, and 2,500 tons of
nut, pea and slack for the garbage reduction
plant. The bid of the Fletcher-Williams Com¬
pany was $1.12 on West Virginia nut, pea and
slack and $1.15 for mine run. The Elk Coal
Company’s bid was $1.41 and $1.48 on Cam¬
bridge and Hocking mine run. The Victoria
Coal Company quoted $1.23 for Hocking nut,
pea and slack and $1.53 for eastern Ohio mine
run. The seven other bidders were consider¬
ably higher than the three given. All prices in¬
cluded delivery. The contracts have not yet
been awarded.
Michigan Agricultural Collegt.
Detroit, Mich., August 5. — {Special Corres pondence.) — Following are bids on coal supply re¬
cently opened by the board of control of the Mich igan Agricultural College in East Lansing, Mich.:
Parker Bros. Co., Detroit .
H. S. Oclbert Coal Co., Detroit .
Detroit & Pittsburgh Coal Co., Detroit .
Commercial Coal Co., Detroit .
Commercial Coal Co^ Detroit .
Consolidation Coal Co.. Detroit .
W. H. Warner Coal Co., Detroit .
Ohio & Michigan Coal Co., Detroit .
United Fuel & Supply Co., Detroit .
Michigan Coal Co., Lansing .
Michigan Coal Co., Lansing .
C. G. Blake Co., Cincinnati .
C. G. Blake Co., Cincinnati .
Bev/ley-Darst Coal Co., Richmond, Ind .
Elmer Miller Coal Co., Toledo .
Elmer Miller Coal Co., Toledo .
Progressive Coal Co., Detroit .
J. W. Dykstra Co., Detroit .
J. W. Dykstra Co., Detroit .
J. W. Dykstra Co., Detroit .
Houston Coal Co., Detroit .
Southland Coal Co., Detroit .
Southland Coal Co., Detroit .
Beech Creek Coal Co., Detroit .
Beech Creek Coal Co.. Detroit .
United Coal Sales Co., Detroit .
Moreland Coke Co., Pittsburgh .
Moreland Coke Co., Pittsburgh .
Morgan Andrews Coa! Co., Detroit .
M. O. Dewey & Co., Jackson .
M. O. Dewey & Co., Jackson .
O’Gara Coal Co., Chicago .
Indian Run Coal Co., Charleston, W. X'a .
John T. Hesser Coal Co., Detroit .
West Virginia Pocahontas Coal Sales Corpora¬
tion, Detroit .
West Virginia Pocahontas Coal Sales Corpora¬
tion, Detroit . .
J. G. Hoffman, Detroit .
Reliance Coal & Coke Co., Cincinnati .
Reliance Coal & Coke Co., Cincinnati .
Lorain Coal & Dock Co., Detroit .
Lorain Coal & Dock Co., Detroit . .
Jewett, Bigelow & Brooks, Detroit .
Interstate Coal Co., Columbus., .
F. P. Weaver Coal Co., Buffalo .
Purzglove Maher Coal Co., Detroit .
Purzglove Maher Coal Co., Detroit .
Smokeless Fuel Co., Cincinnati .
Tones-Parsons Coal Co., Toledo .
Wyatt Coal Co., Richmond, Va .
George M. Jones Coal Co., Toledo .
Island Creek Coal Sales Co., Detroit .
The France Coal Co., Toledo .
The France Coal Co., Toledo .
The Evans Coal Co., Fort Wayne, Ind .
The Evans Coal Co., Fort Wayne, Ind .
Logan Pocahontas Fuel Co., Detroit .
T.ogan Pocahontas Fuel Co., Detroit .
C. C. Corey, Detroit .
Mancourt-Winters Coal Co., Detroit . . .
Ayers & Lang, Detroit .
Ayers & Lang, Detroit .
Ayers & Lang. Detroit .
J. S. Wentz Co., Detroit .
Island Creek, W. Va .
West Virginia .
Nagola Island Creek, W. N'^a .
Dorothy, W. Va .
Fairmont, W. Va .
Fairmont .
West Virginia .
West Virginia .
West Virginia .
West Virginia .
Michigan .
Blake New River, Smokeless .
Blake Kanawha Splint .
Harlan Count:w Ky .
Main Island Creek .
Buffalo Creek Wash Screening .
Frocco, W. Va .
Blue Star, W. Va .
Peacock Pomeroy, W, Va .
Clifford Mine, Ohio .
Houston Pocahontas Slack, W. Va....
West Virginia .
Pocahontas Slack .
West Virginia .
Beech Creek Slack .
Ella Main Island Creek .
West Virginia . . .
Youghiogheny Gas Coal .
West Virginia .
Island Creek .
Pittsburgh No. 8 .
West Virginia .
West Virginia .
West Virginia .
Panther Mine Run .
1^-Inch Lump .
West Virginia .
Logan, W. Va .
Kentucky Blue Jacket .
Logan, W. Va .
Ohio Ihltsburgh .
Iroquois, W. Va . ^ .
King Pocahontas Slack (Marvin Thacker
Lump) .
Liberty Smokeless (Pennsylvania) ....
Island Creek .
Pittsburgh No, 8 .
West Virginia .
West Virginia .
West Virginia .
Pultney Slack .
Island Creek .
West Virginia .
Kentucky Hummer .
West Virginia .
Harlan, Ky . . .
West Virginia .
West Virginia Splint .
Genuine Island Creek .
West Virginia .
West Virginia .
Kentucky .
Pittsburgh No. 8 .
Harlan, Ky .
Slack.
Lump.
2.55
2.80
2.40
2.80
2.50
2.80
2.30
2.80
2.30
2.70
2.50
2.90
2.42
2.70
2.45
2.75
2.55
2.80
2.40
2.80
2.50
2.80
3.00
3.30
2. si
3.16
2.50
2.80
2.35
2.80
2.45
2.80
2.50
2.30
2.85
2.55
2.80
2.40
2.90
2.70
2.40
2'. 75
2.35
2.70
2.80
2.47^
2.80
2.50
2.80
2.45
2.80
2.48
2.85
2.33
2.70
2.65
2.95
2.35
2.75
2.50
2.80
2.70
2.90
2.46
2.80
2.50
2.90
2.50
2.44
2.70
2.35
2.70
2.52
2.85
3.00
2.85
3.25
3.35
2.40
2.70
2.30
2.65
2.40
2.80
2.50
2.90
2.55
2.95
2.10
2.(5
2.55
2.90
2.50
2.80
2.50
2.47
2.69
2.44
2.55
2.76
2.40
2.40
2.80
2.45
2.83
2.54
2.75
2.50
3.00
2.45
2.85
2.48
, - B. T.
U. - s
Slack.
Lump.
13800
13900
14200
14000
14200
14500
14700
13900
13600
14050
14000
14200
14000
14300
14000
14200
14000
12000
14300
14200
14000
14000
14000
14300
13500
14600
14000
14600
14000
13000
13700
14000
13800
14100
14300
1 4050
14200
13850
13951
14000
14000
14200
13800
14300
14300
13500
13400
13400
14000
14100
14500
14500
14600
14000
14400
14200
14200
14200
14000
14500
13000
13500
13500
14600
14500
14250
14300
14300
f3000
13500
13500
13S00
14500
13500
14000
13500
14100
14100
14000
14000
14000
13500
13800
14000
14000
13700
14050
14200
14000
14000
14000
13700
13800
14200
13300
13500
13800
New York Golf Tournament.
The New York Coal Trade Golf Association
will hold a one day tournament at the Green¬
wich Country Club at Greenwich, Conn., on
Tuesday, August 10.
President R. B. Baker has donated two
prizes for events, presidents cups, to be given
to the players making the lowest net score in
the first and second divisions, playing to be
under the new system of handicaps.
A one day tournament will be held Septem¬
ber 14, the course to be decided upon later on
by the tournament committee.
The annual fall tournament will be held on
October 9 and 10 at some course to be de¬
cided upon later on. Two courses now under
favorable consideration are the new Seaview
course at Atlantic City, and the Shawnee at
the Delaware Water Gap.
In the future at all tournaments, greens fees
of all members playing will be paid out of
the funds of the association.
Among those present at the meeting of the
association held on Monday were President R.
B. Baker, Treasurer Joseph E. Parsons, J. E.
Davis and E. Coe Kerr of the board of gov¬
ernors, and A. E. Metlach, G. M. Dexter and
W. H. Temple of the various committees.
Large Coal Land Deal.
Twenty-seven thousand acres of coal lands con¬
sidered among the richest in West Virginia is in¬
volved in a deal pending between the Main Island
Creek Coal Company and William H. Coolidge, a
Boston capitalist, who practically controls the
United States Coal and Oil Company, operating
mines in Logan county.
Details of the deal which has been pending
since May were made known today for the first
time. An option was granted to Mr. Coolidge, of
No. 55 Congress street, Boston, on June 10, the
consideration has been stated to have been $2,000,-
000. This option will expire August 10. In the
event that the United States Coal and Oil Com¬
pany does not take over the property it is the
purpose of Mr. Coolidge to organize a company
and take over the properties. The Main Island
Creek Coal Company operates extensive holdings
in Logan county adjacent to the vast holdings of
the United States (Soal and Oil Company. The
proposed purchase of these properties by the
United States Coal and Oil Company follows the
gradual absorption of extensive coal operations
in Logan county by the same company, involving
recently the purchase of the property of the
Island Creek Fuel Company.
Largely increased consumption of coal is ex¬
pected by Detroit shippers when Henry Ford,
head of the Ford Motor Company, puts in opera¬
tion several new plants, for which he has secured
about 2,000 acres of land as a site in a district
adjoining the city’s westerly boundary. The
new plants proposed include a steel plant, tire
plant and factory for manufacturing tractor en¬
gines. Construction work on part of the build¬
ings will start in the near future, Mr. Ford says.
Three indictments brought a.gainst the Phila¬
delphia & Reading Railway Company by the
Philadelphia & Reading Railway Company by the
last Federal grand jury were sustained by Judge
J. Whittaker Thompson in the United States Dis¬
trict Court the latter part of last week. These in¬
dictments charge the Reading Company with fail¬
ing to file tariffs on rates for coal carried over
its barge lines and which is claimed to be in vio¬
lation of the Interstate Commerce Act.
During the December term of .court the .grand
jury brought in an indictment against the Read¬
ing. The presence of two stenographers in the
court room during the^ taking of testimony was
taken as grounds for havin.g the indictments nulli¬
fied. On new bills drawn and during the March
term of court the charges were again heard.
Complaint was then made by the attorneys for the
railway company that many acts of the prosecut¬
ing attorney for the government had been against
the practice of the court. This time, however, the
judge has held that all acts under complaint were
le.gal and gives considerable attention to the in-
quisitorial scope that is vested in the grand juries.
The case at issue is one that greatly concerns
the coal dealers of New England in that it is an
attempt to bring the barge line of the Reading
Railway under the jurisdiction of the Interstate
Commerce Commission, in that a demand is made
for the filing of tariffs on the barges. Trial date
for the case has not yet been announced.
No. 6]
THE BLACK DIAMOND
109
And This Is “News.”
An interesting sidelight on the way the public
regards the coal trade is given in a newspaper
publication of the following item, under an
Evansville, Ind., date-line :
“Coal consumers in Evansville who have not
paid their last year’s coal bills will have con¬
siderable trouble in getting coal next winter, ac¬
cording to officers of the recently-organized
Evansville Coal Exchange. They say they will
compile a list of people who have not paid their
bills, and none such will be sold coal unless they
pay for it in advance.”
The fact that newspapers considered this item
sufficiently good “news” to be worth running sug¬
gests that the coal dealers, ordinarily, are sup¬
posed to permit themselves to be stung and
stung again, supplying coal to all who ask for it,
and not caring whether they get their money for
it or not.
If it is “news” to Evansville people that they
are going to have to pay for their coal, and that
those who have shown themselves not to be
worthy of credit will not enjoy this privilege
hereafter, it might be a good idea to print this
“news” in other towns for the benefit of the
dealers in those communities, who may not have
waked up to the proposition that it is time to
defend themselves from the operations of the
deadbeats.
A Backward Dealer.
Not long ago the writer approached a coal
dealer who was using a method of pricing his
coal which seemed to offer only a small chance
of sc|ueezing out a profit. The object was to
ask him how he did it. The dealer not only did
not give the information, but seemed to think that
the inquiry warranted suspicion.
“No, So-and-So has never set the woods on
fire,” said another dealer in that community,
when questioned regarding the standing of the
coalman referred to. “He’s been in the trade
a long while, but about all he has ever been able
to do is to make a living — and not a very good
one, at that. He’s a good, honest fellow, but not
the sort who read the trade papers.”
In other words, if you want to do business
without getting the information furnished by the
experiences of others: if you prefer to blaze a
trail for yourself in the tangled thickets of busi¬
ness troubles; if you don’t care whether you make
a profit, just so long as you stay in business,
be sure not to read the trade papers. They might
make you want to change some of your obsolete,
antiquated and unprofitable methods !
Volume Versus Profit.
“I just turned down a $60 coal order,” said a
veteran dealer in a Middle Western city the other
day.
“Teams all tied up?” inquired a friend.
“Nope. Had plenty of teams.”
“Wanted the sort of coal you didn’t handle,
maybe?” pursued the inquirer.
“Not on your life. Everybody in this town
wants our Triple X Bernwell, my friend.”
“Well, then, why didn’t you take the order?”
“The customer wanted to pay for it at the
rate of $.5 a month,” said the dealer. few
years ago, before I began to analyze my business,
T would have taken that order as quickly as a
trout grabs a tempting fly — and wouldn’t have
realized my mistake, as the trout frequently does.
But now I have sense enough to know that I can’t
make money out of that kind of business; that
the cost of keeping books on the account, the cost
of sending a man each month to get the five
dollars, and the interest on the money tied up dur¬
ing that period — there’s an item of $1.80 alone —
would be so great that the profit would be nil.
I’d have my trouble for my pains, and that’s
about all.
“So I told the would-be purchaser that we
didn’t carry accounts over sixty days, and we
wouldn’t be able to handle his business on that
basis. He went away, not sorrowfully like the
young man of the Scriptures, but as sore as
Johnny Evers when he is chased out of the ball¬
park during a close game.
“That buyer is perfectly honest, and would
probably pay the account as he promised to do.
Furthermore, he thinks that my action was a re¬
flection on him personally, which it was not. He
merely wanted to borrow part of my money with
the understanding that he would pay it back with¬
in a year, and I told him, in effect, that I wasn’t
in the banking business.
“However, there are plenty of dealers in this
town who will readily take the order, and con¬
gratulate themselves on getting it, so that there’s
no reason why I or the consumer should worry.”
Study Human Nature.
There are usually several ways of doing a thing,
and when it affects the public, it is worth con¬
sidering whether the plan which has been pro¬
posed will please or displease your customers.
In other words, a working knowledge of hu¬
man nature, or what the high-biows call psychol¬
ogy, is often of advantage to the coal dealer,
who is dealing with human Ij dngs just as much
as he is with coal.
In a certain city where the question of “getting
the money” has been under consideration by the
coal dealers, who are divided on the subject of
operating on a cash or credit basis, most of the
members of the trade have straddled the propo¬
sition by giving credit, but requiring the price to
be paid within ten days from date of delivery.
They figure that in this way they are getting the
advantage of cash, by getting the money in
promptly, and that the customer has the con¬
venience of credit, in that it is not necessary
to have the money at the house when the coal
is delivered, but he may remit by check against
the dealer’s bill, in the usual way.
One dealer who adopted this plan quoted the
net prices that he expected to get on all of the
coal which he is selling. At the bottom of his
quotations, however, he stated, “If bill is not
paid within ten days after delivery, twenty-five
cents a ton extra will be added.” This dealer
approached the twenty-five-cent differential as if
it were a club, and held it threateningly over the
heads of his customers. “If you don’t do as 1
tell you,” he declared in effect, “I’ll hit you with
this twenty-five-cent penalty !”
.-\nother dealer, however, simply quoted the
gross prices, including the twenty-five-cent rebate.
Then he added graciously, “All customers paying
their bills within ten days will be entitled to a
rebate of twenty-five cents a ton on these prices.”
Here was an attractive proposition — a chance
to get something of value by the simple expedient
of paying, promptly. And, of course, everybody
liked the idea of that and the dealer found it
easy to sell, and easier to collect, on that basis.
One of the things the public service corpora¬
tions have learned is that it doesn’t pay to tell
the public that it must do certain things. The
best and most successful ones say, ‘Tleasc,” even
though they have a monopoly. Therefore a coal
man with lots of competitors, can lose nothing by
making a thing seem as pleasant and agreeable as
possible, especially when he gets exactly the same
results as when the proposition is put in a less
attractive form.
The Retort Courteous.
.4 certain coal dealer who got all hot under
the collar over a statement about his coal at¬
tributed to the salesman of a competing house
straightway went to the advertising department
of a local newspaper and inserted an advertise¬
ment in which he declared that the statement
aforesaid was “ a malicious lie.”
Now, without stopping to consider the rights
and wrongs of this special case, do you really
l)elieve that the use of the “short and ugly word”
by the dealer helped his cause with the great pub¬
lic to which he was appealing by means of his
black-faced type and his white space?
In a formal debate each side is entitled to rc-
Inittal, and the most effective sort of rejoinder is
what “Marse Henry” would call the retort court¬
eous, which presents the fact, but presents it
wittily, pointedly and in a friendly spirit. To say
that another dealer is passing out “malicious
lies” is a reflection on that dealer, assuming that
it is so, but are not a great many people going to
feel that an affront has been put upon them by
having such coarse expressions used in soliciting
their favor? Then, too, there are others who
always favor the under dog. The man who is at¬
tacked without being given an opportunity to
defend himself is presumed innocent until proved
guilty by those of this type.
In other words, the use of extreme language,
uttered in the heat of passion, alienates friends,
instead of winning supporters, and no business
man should lose his temper so far as to risk such
a result, even though he may get some temporary
personal satisfaction out of it.
Let all your ads bear the words, “Passed by the
National Board of Censorship.” And be your
own censor.
One Use of Advertising.
Some coal concerns have salesmen out on the
street, going from door to door soliciting coal
business. This is salesmanship reduced to the
absolute zero, and is putting the business on the
lowest plane that it is possible to use.
One use for advertising — including circular
letters, premiums and all other forms of publicity
— is to develop prospects. When the dealer has
certain definite, interested prospects to work on,
he can use his salesman to the best advantage in
soliciting them.
W’hen it is necessary to spend valuable time in
ringing doorbells, as a preliminary to working
up prospects for coal orders, the cost of getting
the business is prohibitive.
-A^nalyze the proposition, as applied to your own
l)usiness, and see if it isn’t so.
A charter was issued last week by the Sec¬
retary of State of West Virginia for the in¬
corporation of the Fairmont & Helen’s Run
Railway Company, of Baltimore, with a capital
stock of $.500,000. This is a subsidiary of the
Western Maryland Railway. Incorporators
are Carl R. Gray, M. C. Byers, C. H. Porter,
H. R. Pratt and L. F. Timmerman, all officials
connected with the Western Maryland Rail¬
way. The road will be six miles long, and
will connect the two mines of the Consolida¬
tion Coal Company, which are being opened
up in the Helen’s Run field of West Virginia.
The line will also connect with the Baltimore
& Ohio in the vicinity of Fairmont, and the
output of the mines will be taken over the
Baltim,ore & Ohio from the new road and
turned over to the Western Maryland at a
point on the Connellsville extension, whence
it will be carried into the Western Maryland’s
big export terminal at Port Covington. The
building of this line is in connection with the
arrangement made last winter between the
Western Maryland and the Consolidated Coal
Company, under which the Rockefeller interests
supplied the coal company with new funds to
the extent of about $7,000,000. In return for
this it was stated the Consolidation Coal Com¬
pany agreed to turn over to the Western
Maryland the output of the new mines to be
developed with the money. .Mready Consoli¬
dation Coal traffic is said to be moving over
the Western Maryland at the rate of 1,000,000
tons per annum and is expected shortly to
reach a total of 3,000,000 tons annually.
110
THE BLACK DIAMOND
[August 7
PUBI.ISHED EVEBT SATXTBEAT BT THE
BEACH DIAMOHD COUFAITS'.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United _ States. Foreign subscrip¬
tion price, $6.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOHD COUFAITT (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1602 Oliver building.
Saturday, August 7, 1915.
INDEX.
Special Articles.
Getting Rid of Manual Labor in Furnace Room
Centralized Power Plant for Coal Mines .
Three Most Important Price-Fixing Cases .
How Bunker Coal Is Stowed in Japan .
Formation of Coal and Influence of Grades...
Communications .
A Machine Which Mines and Loads Coal....
Commissary Managers Meet .
Sund^ Creek Company Changes .
Bids For and Contracts Let On Coal .
New York Golf Tournament .
Large Coal Land Deal .
Field of the Retail Dealer .
Editorial .
Men Prominent in the Coal Trade’s Eye .
Ohio Coal Rate Agitation .
Colorado’s Output .
News Local to Chicago .
New Coal Companies .
Facts Which Determine Our Export Prospects
Market Reports.
General Review and Chicago .
Pittsburgh, St. Louis and Omaha .
Cincinnati and Louisville .
Indianapolis, Detroit and Birmingham .
New York . . .
Philadelphia and New England .
Buffalo, Baltimore and Toledo .
Hocking Valley .
Page
101
102
103
103
104
105
ItG
107
107
108
lOS
lOS
lOO
110
111
111
in
112
11-2
113
114
115
no
117
118
no
120
15
Van H. Manning.
When William Jennings Bryan went
off on a peace debauch and resigned from
President Wilson’s cabinet, the newspa¬
pers and everybody began to speculate
on who would be his successor. They
expected President Wilson to do the cus¬
tomary thing and hence to search for
some conspicuous figurehead who could
fill the position and reap the honors while
some efficient somebody else did the prac¬
tical work.
That was not President Wilson’s idea,
however. Instead, he promoted the next
in line. He got, for once, a Secretary of
State who really can do the work of the
Department of State. - Secretary Lansing
is living up to the nation’s expectations in
every particular.
On a smaller scale, a similar problem is
presenting itself at Washington. Dr.
Holmes, the director of the Bureau of
Mines, died recently. A new man must
be selected to fill his place. Most com¬
mentators have been looking around to
find a conspicuous man to adorn the title
— or — while some one else does the work,
be adorned by it.
In the meantime, there is in the bureau
now a very efficient person by the name
of Van H. Manning. He has been the
assistant of Dr. Holmes. For the last
year he has been acting director of the
Bureau of Mines. Many of the things
which Dr. Holmes could not find time to
do, Mr. Manning has done. Many of the
papers and reports which Dr. Holmes did
not have time to write or edit, Mr. Man¬
ning has “whipped into shape.” He knows
the work of the bureau because he has
been in it for a long time.
As assistant director, he is in line for
promotion. So far as we can see now,
there is no good or sufficient reason why
President Wilson should not follow his
own precedent and promote Mr. Manning
to the head of the bureau.
If promoting the next man in line to
the bigger position, because he showed a
particular fitness for the work, were
adopted in the government bureaus, it
would be a first-rate thing for the public
work in general. It would teach em¬
ployes of various bureaus and depart¬
ments that they were not merely under
civil service, but that they might come to
occupy conspicuous positions if they
learned their jobs.
This is what Mr. Manning has done, so
we are informed, and it would be a
mighty good thing to recognize that fact
by his promotion.
The Purpose of Patents.
The American government will grant
letters of patent to any man who invents
a new and useful device. The patent
gives him for seventeen years a monopoly
of his invention. He can make the thing
himself or he can sell the right to others
to make it exclusively.
It is expected that all the profits de¬
rived from it shall be his for a period of
seventeen years. The wish of the people
is that he should be fully compensated.
Not all of us have asked why the gov¬
ernment should do such a liberal thing.
Why should a great people give a man
an exclusive monopoly of a certain ma¬
chine for nearly a score of years?
It is a long-headed policy of the govern¬
ment. Those who enacted the patent law
knew that the cost of living can only be
cut by the use of ingenious devices. If
manual labor is relied upon the cost may
never be lower but must be higher. The
government is willing, for a period of
years, to give one man a large return on a
machine provided the people themselves
get the benefit of it. That is, the govern¬
ment is not looking out for the inventor
solely; it has its eye upon the ultimate
good of the whole people. There is the
nub of the whole patent law.
Naturally the government expects that
every invention would help to reduce the
cost of living. Let us consider this, for a
moment, in the light of the attitude of
the Ohio miners toward coal production.
The government has sought to procure
the invention of machines which would
reduce the cost of mining coal. The peo¬
ple have encouraged the invention of
devices which would improve the trans¬
portation of coal. They did so because
they want cheaper coal.
The miners’ union sets itself up as
opposed to both of these things. It re¬
sists the introduction of machines into
the mines. It demands that it shall be
given such constant increases in wages
that the pay roll absorbs all of the benefit
of the machinery and more.
That is, instead of any of the benefit
of new production processes going to the
people, all of that benefit is absorbed by
the men who form the union.
The people of Ohio are today up against
the proposal that with nearly all of its
coal mined by machinery, with transpor¬
tation by improved machinery and with
retail distribution simplified by machinery,
they must pay higher prices than they
have ever paid. This situation arises
from the exactions of the miners. They
not only set at naught all of the nation’s
efforts at lowering the cost of the produc¬
tion, but they make such demands that
the cost is higher than it was when hand
labor alone was used.
There is something wrong in a society
which will tolerate such a condition.
Partisan Politics.
There is an old, old story to the effect
that a navigator and his son were out in
a boat steering by a compass. The father
went to sleep and left the boy on watch,
telling him to keep the boat headed
toward the North Star. He awoke after
several hours and found the boat running
in the opposite direction. He asked the
boy about it and the lad replied that they
had passed that star a long time ago.
We have a similar situation in Ameri¬
can politics today. We started out, in
this country, with no parties at all. Then
Alexander Hamilton got one view of what
our financial and general government pol¬
icy should be and Thomas Jefferson got
another. The two split and there was the
origin of parties in America.
The original conception of “partisan,”
however, was that the two parties should
be advocates of opposing theories of gov¬
ernment. A partisan might be a very big
man and still hold one or , the other of
two theories, since nobody knows what is
the right theory of government.
As time went on the word “partisan”
came to have a very different and a very
much smaller meaning. They call the
lawyer a partisan today merely because
he is hired by some man to represent him
in court. It is possible for one man to be
a partisan in a quareel between two other
men who may be settling their difficulties
with their fists. We have so degraded the
word “partisan” that it has come to mean
those who take sides on the most trivial
questions.
It is the latter meaning which has come
to dominate our present politics. Today
politicians are not standing for great prin¬
ciples of government ; they are standing
for self-interest and personal prejudice on
the most trivial and unimportant things.
Naturally the poltical partisan is today
siding with the majority or the greatest
number of voters. Thus we have come to
have a whole system of partisan politics
based upon what is the personal interest
of a class in society, or one of the major
subdivisions of society.
For a while the politicians were parti¬
sans of the consumer. As such they were
pijted against capital, the carrier and the
worker. Now they have changed from
that kind of partisanship to favoritism of
the worker — to a partisanship of the
worker in the form of the labor union.
In other words, the politicians are no
longer studying the big questions from a
broad point of view. They are looking at
them only from a very narrow and re¬
stricted point of view, which is: “What
action can we take which will get the
greatest number of votes?” This sort of
partisanship is going to prove the destruc¬
tion of the republic.
No. 6]
THE BLACK DIAMOND
111
Men Prominent in the Coal Trade’s Eye.
John F. Bermingham.
As announced in The Black Diamond of
last week, at the meeting of the board of di¬
rectors of the Delaware, Lackawanna & West¬
ern Coal Company, held at the New York
offices on Wednesday of last week, John F.
Bermingham was elected president to fill the
vacancy caused by the resignation of E. E.
Loomis, who resigned the presidency imme¬
diately following the decision of the supreme
court in the Lackawanna case.
In appointing Mr. Bermingham to this im¬
portant position, the directors have taken into
cognizance his long and faithful record with
the Lackawanna interests, entering the Lacka¬
wanna railroad service twenty-four years ago.
Since the organization- of the Delaware, Lack¬
awanna & Western Coal Company in 1909, Mr.
Bermingham has filled the position of auditor
and also assistant to President Loomis. His
first service with the Lackawanna Railway was
in the accounting department, in which de¬
partment he spent about ten years. He began
to acquire experience in the coal sales depart¬
ment and the coal operating department about
1902, when Mr.
Loomis came with
the Lackawanna as
general sales agent,
to be almost im¬
mediately elected
to the vice-presi¬
dency. As assist¬
ant to Mr. Loomis,
Mr. Bermingham
had every oppor¬
tunity to acquire a
very ripe experi¬
ence both in the
operating and gell¬
ing ends of the
anthracite indus¬
try. He has also
done a great deal
of traveling in the
large territory to
which the Lacka¬
wanna distributes
its product and en¬
joys the acquaint¬
ance of all of its agencies, as well as of many of
its most important customers. He, therefore,
brings to his new position an experience that is
most valuable for an executive.
Mr. Bermingham was born in New York
and he has maintained a residence at Oyster
Bay for many years. He was educated at the
Huntington high school, and belongs to the
Huntington County Club, the Huntington Golf
and Marine Club, and is president of the Oys¬
ter Bay board of education. He was one of
the organizers and is still a director of the
North Shore Bank, one of the most flourishing
financial institutions on the north shore of
Long Island.
About the 15th of the month, the general of¬
fices of the Delaware, Lackawanna & Western
Coal Company will be removed from No. 90
West street to the eighteenth floor of the new
Equitable building.
Mr. Bermingham has many warm friends in
the coal trade who feel proud of his election
to the presidency of the company with which
he has so long been identified. It is a very
responsible position, and those that know him
will realize that the directors could not have
made a wiser selection.
C. F. Rouze.
The Knox Motors Associates of Springfield,
Mass., an association recently organized to
act as sole distributors of the products of the
Knox Motors Company, announces the ap¬
pointment of C. F. Rouze as sales manager.
Mr. Rouze succeeds H. F. Blanchard, who
for several years has been sales manager of
the Knox Motors Company.
Mr. Rouze has been in charge of the Knox
branch office at Kansas City, Mo., since
February, 1914. Because of his experience in the
motor truck and tractor field, he is well qualified
to supervise the marketing of the latest Knox
product — a four-wheeled tractor.
Since 1909, Mr. Rouze has been associated with
the motor truck and tractor business, having been
connected with the Rapid Motor Transportation
Company as sales representative; with the Motor
Truck Department of the United Motor Company
as western supervisor, and with the American
•Locomotive Company in a similar position.
“My conviction,’’ says Mr. Rouze, “has been
that the gasoline engine must inevitably do
our heavy trucking. I realized, however, that
with a motor vehicle which both propelled
and carried its loads, the tonnage limits were
quickly reached. My study of transportation
problems led me naturally into the fields of
heavy hauling. In other words, I was in search
of a gasoline vehicle which would handle loads
of from five to twenty tons as conveniently
as the motor truck handles the lighter loads
of two or three tons and at a much lower ton
mile cost. My connection with the Knox
Motors Associates is due to the fact that, even
in the earliest experimental Knox tractors, I
recognized the complete solution of the heavy
hauling problem.”
Anson L. Havens.
At the recent reorganization of the North¬
western Retail Coal Dealers’ Association into the
Northwestern Traffic Bureau the executive po¬
sition was given to Anson L. Havens, pro¬
prietor of the Havens Coal Company, with
headquarters at No. 1714 Farnam street,
Omaha, Neb. The
Omaha men who
know Mr. Havens
say that the judg¬
ment of the new
traffic bureau was
correct when they
selected him as
the executive
head. He not only
knows the retail
coal business, but
he knows lots of
other things which
pertain to the larg¬
er aspect of retail¬
ing, and he is con¬
sidered the proper
man to put the
new bureau on its
feet.
Mr. Havens was
born at North
Amherst, Ohio,
August 6, 1860. He
obtained his education at the graded schools of
North Amherst and at Pittsford, N. Y. He after¬
wards broadened this out by an extended business
experience, part of which was in connection
'with the railroads.
Mr. Havens has been an enthusiastic mem¬
ber of the Order Kokoal, having been modoc
of the Omaha breaker and having served as
imperial swatta of the organization.
Mr. Havens’ business experience began in
1876 with the Union Pacific railway, where he
continued until 1895. He was connected with
the station service of the Union Pacific at
various points for that period of time.
From 1895 to 1908 he was a partner in the
firm of Tom Collins & Havens Coal Company,
and from 1908 to 1913 he was treasurer and
manager of the Havens-White Coal Company,
Incorporated, of Omaha. In the latter year
the Havens-White Coal Company went out of
business and Mr. Havens took over the Far¬
nam street yard, where since that time he has
been trading under the name of the Havens
Coal Company.
W. Alfred Weeks.
W. Alfred Weeks is managing partner of the
Weeks Coal Company, with headquarters at
Sterling Ill. His other claim to fame is the
fact that he is a director of the Illinois & Wis¬
consin Retail Coal Dealers’ Association and a
good one — at least the officers of that associa¬
tion put a mark against his name which means
that whenever they need advice or money or
help they can get it by going to him.
Mr. Weeks was born at Lee, Illinois, July 10,
1884. He passed through the Lee and the
Rochelle grammar and high schools and al¬
though he is too modest to mention the fact,
his associates say that he quitted his school
with the honors of his class.
His first venture in business was as a clerk
in the office of the Keystone Manufacturing
Company, which position he accepted in 1901.
The years from 1902 to 1906 were occupied by
him as a bookkeeper for the Moses Dillon
Company, but in October of the latter year he
bought the coal business then conducted by
F. N. Powers.
That Mr. Weeks has been somewhat of an
aggressive factor in the coal trade is indicated
by one fact: At the time he took charge of this
business its annual sales amounted to $11,000.
He has succeeded in multiplying this by five
because the volume of business done in the
last year was measured to be exact by the
figure of $50,857.04.
Ohio Coal Rate Agitation.
Columbus, Ohio, August 4. — (Special Corre¬
spondence.) — Formal hearing before the Ohio
Utilities Commission to secure readjustment of
coal rates that will increase the differential against
West Virginia and Kentucky, starts in the public
rooms of the commission at the State House
Thursday morning.
The third conference between railroad officials
and Ohio coal producers, held in Columbus last
Friday, broke up without prospect of the two
sides getting together. On vote the railroad men
declared themselves in favor of going before the
Interstate Commerce Commission and the coal
men announced their purpose of appealiag to the
Ohio Utilities Commission.
The medium through which the question is about
to be threshed out before the state body is the
action filed with it a week or more ago by the
miners. Practically every coal-carrying railroad
in Ohio is named as defendant. Any coal com¬
pany may become party to the petition by being
represented at the hearing and submitting evi¬
dence. It is thought that a large number of them
will take advantage of this opportunity, and that
the whole fight will centre in this case, rather in
one that might be filed by the operators.
Among the witnesses which the miners have
asked to be subpoenaed are the following Hock¬
ing Valley officials: M. J. Caples, vice-president;
M. S. Connors, general manager; H. Q. Wassen,
general freight agent; H. B. Dunham, freight
traffic manager; W. N. Cott, auditor, and C. H.
Sisson, trainmaster at Nelsonville. Frank A. Ray
and Edwin W. Warnick, of the state tax com^
mission, have also been summoned. They are
asked to bring railroad reports submitted to the
tax commission for the year ending July 1, 1915.
C. A. Radcliff, former secretary of the utilities
commission, will be among counsel representing
the miners. It has already been unofficially an¬
nounced that the attitude of the railroads will be
that of carryin.g the matter into the federal courts
should any radical change of rates be authorized
l)y the commission. The aim of the coal men is
to see the differential against out-of-state bitu¬
minous coals be increased so as to insure Ohio
steam business to Ohio producers.
Colorado’s Output.
Denver, August 5. — The coal production in
Colorado for 1914 is officially reported as being
8,201,423 tons against 9,268,939 tons in 1913. This
is a decrease of 1,067,516 tons, equal to 11.5 per
cent. A mild winter last year and unsettled labor
conditions in the spring are assigned as reasons
for the decreased tonnage.
The total number of men employed, according
to the official report, was 10,596. Seventy-five
were killed and 356 men were injured. The per¬
centage of fatal accidents was seven per 1,000
men employed, compared with 8.6 per 1,000 in
191.3.
Routt county made the best showing in ton¬
nage, more than doubling its production. The
Routt county output was 655,878 tons, against
323,312 tons in 1913.
The following tabulation shows the increase
or decrease of each county, 1913-1914 :
County —
1913
1914
Archuleta . . . .
3,771
2,611
Boulder .
. . 959,010
993,702
Delta .
. . 80,786
97,073
El Paso .
283,142
Fremont . . . .
. . 531,833
173,483
Ciarfield .
.. 168,027
117,994
r,unnison . . . .
. . 476,025
403,503
Huerfano . . . .
. .1,644,212
1,686,606
Tackson .
62,905
45,769
Jefferson . . . .
. . 155,351
141,914
r.a Plata .
. . 140,353
135,513
r^s Animas. .
. .3,782,340
2,756,284
Me.sa .
. . 127,034
158,267
Moffat .
300
Montezuma . .
150
987
Pitkin .
. . 52,216
70,746
Routt .
. . 332,566
655,878
Weld .
. . 419,399
477,651
Totals .
. .9,268,939
8,201,423
Decrease, 1914
Increase
Decrease
1,160
34,692
16,287
42,394
48,719
358,350
50,033
72,522
17,136
13,437
4,940
1,026,056
3t .233
300
837
1 7,530
323,312
58,252
1,067,616
THE BLACK DIAMOND
[August 7
112
News Local to Chicago.
A. R. McMaster of Peoria, Ill., was calling
on Chicago friends this week.
A number of judgments have recently been
rendered against the Berry Coal & Coke Com¬
pany.
Arthur Ainsworth of Grand Rapids, Michi¬
gan, was calling on the Chicago trade this
week.
We note a judgment against that energetic
coal company organizer, Frank B. Downing,
for $739. ()(').
Three suits for amounts ranging from .$100
to $300 have recently been started against the
Alwart Bros. Coal Company.
The Iliggins-Martin Coal Company have
closed their office in the Lytton building, which
was in charge of Wm. J. O’Rourke.
Joseph Devoy of the Ohio & Alichigan Coal
Company has returned to Detroit after spend¬
ing a week in Chicago and Milwaukee.
Walter S. Bogle is making an eastern trip
which will include stops at Montreal, New
York and Baltimore before he returns.
W. P. Johnson, president of the Des Moines
Coal & Coke Company, Des Moines, Iowa,
was in Chicago this week for a few days.
John A. Ford is now spending his time call¬
ing on the country trade in northern Illinois
and southern Wisconsin for the Houston Coal
Company.
George Hutchinson has tendered his resig¬
nation as secretary and treasurer of the F. G.
Hartwell Company. His successor will be T.
R. Johnson.
A. O. Nelson, who recently organized the
Nelson Coal & Dock Company of Minneapolis,
was in Chicago for a short time the early part
of the week.
Two suits have recently been started and
two judgments rendered against the Northern
Coal and Supply Company. The largest judg¬
ment was for $3,471.60.
Charles Spalding, formerly with the New
Kentucky Coal Company, has been appointed
local sales agent at Omaha for the Wickham
& Burton Coal Company.
Ronald L. Patterson, president of the
Nebraska Fuel Company, Omaha, was in Chi¬
cago for a few days getting a line on the
southern Illinois coal market.
On August 2nd quite a snowfall was report¬
ed at Aberdeen, S. D., which extended to
northwestern Iowa. This may or may not be
an indication of a severe winter.
A creditors’ meeting of the Illinois Hock¬
ing Washed Coal Company will be held in the
office of Referee in Bankruptcy Walter J.
Grant, Marion, Illinois, August 13th.
Gordon Buchanan says the rush of orders
for the last few days in July indicated the
dealers were of the opinion the new circular
on Franklin county coal which went into effect
August 2nd would be maintained.
Said one Dearborn street shipper this week:
“Collections are getting better. Some of my
trade are now only taking two months’ time
to pay their bills. Since the war started three
montlis has been considered fairly prompt
pay.”
Geo. S. Whyte has purchased the interest of
F. R. Macomber in the wire rope business
operated under the name of the Macomber &
\Vhyte Wire Rope Company. Mr. iMacomber
was appointed general manager of the Frank¬
lin Life Insurance Company, effective .August
3nd.
Charles M. Moderwell, F. S. Peabody, T. J.
O’Gara, Glenn W. Traer, C. R. Solsberg, G.
W. Wardley and W. C. Niblack make up the
Chicago list of delegates appointed by Gov¬
ernor Dunne to attend the eighteenth annual
session of the American Mining Congress,
which will be held at San Francisco, Septem¬
ber 20 and 23.
Charles W. Gilmore says this is bound to be
a good year for the coal shipper. He looks
for a turn in the tide about August 31st, which
will be his forty-seventh birthday. He is not a
believer in phrenology or astrology, but is
willing to wager a few tons of Cora Lump
that the coal man will start to smile again
about that time.
The “war order” busines,s must be spread¬
ing to some of the firms manufacturing coal
mine equipment, judging from the length of
time it takes to fill orders. The Dodge Manu¬
facturing Company of Mishawaka, Indiana,
promised to make a delivery of screening
equipment to a southern Illinois operator the
latter part of June, but this order is still wait¬
ing to be shipped.
I. L. Runyan, secretary of the Illinois &
Wisconsin Retail Coal Dealers Association,
attended the Rock Island, Ill., retail coal mer¬
chants’ picnic held at Maple Grove on August
3. A fish and chicken dinner made the occa¬
sion memorable and served to emphasize the
good feeling prevailing among the Rock Island
dealers as a result of their habit of meeting
together each month. The picnic is an annual
event and is always well attended.
The tax valuations placed on the personal
property of the coal mining companies by the
Franklin county board of assessors is causing
the different operators considerable anxiety.
H. A. Edwards, chairman, of the board of re¬
view, has sent out notices to the operators to
appear and show cause why the assessment
should not be raised. Chairman Edwards evi¬
dently is not in touch with the coal market or
the prices obtained for coal in the last year.
G. D. Rosengrant of the Bickett Coal &
Coke Company says the coming fall and win¬
ter’s business will be the best the coal men
have experienced since the windfall of 1902.
This prognosticator has many arguments to
substantiate his prophecy. He also ventures
to assert that the screenings buyer waiting for
a repetition of the drop in prices of former
years is bound to be disappointed. According
to this genial optimist the operator will dump
his screenings on the ground before forcing
the market to the figure prevailing in former
years.
Frank J. Browning, manager of the Purity
Coal Company, returned this week from a trip
to Minneapolis. While talking of conditions
in that section he said: “The northwest is
harvesting the greatest crops of wheat and
other grains in its history. Personally I feel
the railroads will be swamped to take care of
the coal and grain movement, which will come
pretty close together this year. I would not
l)e surprised to see quite a stiff jump in prices
later on, due to a suddenly increased demand
and the inability of the transportation com¬
panies to move coal promptly.
A number of suits have been started and a
few judgments rendered against the National
Coal Sales Company formerly located in the
Westminster building. This concern was or¬
ganized by Jacob Feinstein and Julius Mueller
over a year ago. At the time of the organ¬
ization Feinstein, the “capitalist” in this ven¬
ture, said he did not believe in financial state¬
ments and for that reason would not make
one. In view of the recent development we
have come to the conclusion that Solomon,
the wisest of men, was not superior in wisdom
to Feinstein. A glance over the list of credit¬
ors indicates that two are born every minute
in the coal trade instead of one, which was
popularly supposed to be the number until the
coal operators got shy of a place to put their
surplus coal.
Keeping consignment coal off the market is
an important factor in the upholding of prices
by southern Illinois shippers. Formerly oper¬
ators who were not strong financially would
ship one hundred or more cars to consignment
points to some jobber who would help make
up the company’s payroll. .\s a rule, this coal
was sacrificed regardless of price. The net
return to the operator was way below the
cost of production, but he saved his face tem¬
porarily by not missing his payroll. This prac¬
tice was an expensive one and the result was
that receivers were eventually appointed for
the companies indulging in it extensively. Two
Franklin county companies guilty of this pro¬
cedure last year have shut down and the mar¬
ket is not compelled to take this tonnage which
has helped to keep it strong.
The Illinois Public Utilities Commission has
notified shippers in central Illinois that a
series of conferences will be held at various
points to obtain data concerning a case
brought by Israel Joseph of Aurora against
the Burlington, objecting to an advance in
switching charges for cars to industrial plants.
The commission will confer with shippers at
.^lurora, Galesburg, Oregon, Ottawa, Beards-
town, Moline, Zearing, Monmouth, Polo, Men-
dota, Vermont, Fulton, Oglesby, Bushnell,
Whitehall, Savanna, Shabbona, Buda, Galva,
RocheUe, East Dubuque and Chapin. The
Burlington and other roads propose to ad¬
vance switching charges to privately owned
tracks from ten cents a ton, minimum $3,
maximum $4 a car, to fifteen cents a ton, min¬
imum $6 a car, on coal and twenty cents a
ton, minimum $5 a car, on other commodities.
Shippers assert that the present rates are
ample.
B. L. Shepard, secretary, announces that
great preparations are being miade for the
third annual tournament of the National Coal
Trade Golf Association to be held over the
beautiful course of the Glen Oak Country Club
near Chicago, Ill., on Monday, Tuesday and
Wednesday, August 23, 34 and 25. A large
and enthusiastic attendance of coal trade golf¬
ers are expected and you don’t have to be an
expert to thoroughly share in the full enjoy¬
ment of the occasion. There are plenty of
rooms at the Club House so that those who
desire can stay there during the tournament.
This feature makes it exceptionally pleasant
and the National Tournaments have always
proved to be one of the most delightful out¬
ings held in the coal trade. You and your coal
trade friends who enjoy golf are miost cor¬
dially and heartily invited. The latch string
is out and we will not only be glad to have
you with us on August 23-25, but will do every¬
thing possible to make you enjoy every min¬
ute of the time.
A new coal from the famous Franklin
county field will be ready for shipment from
the mine of the John A. Logan Coal Company
some time this month. The installation of the
picking tables is almost completed and with
a few finishing touches this plant will be in a
position to take advantage of the late summer
and early fall business. The operation will
have an ultimate capacity of 3,000 tons per day.
Every modern mechanical device for the care¬
ful handling and preparing of coal is in use at
this mine. The officers of the company are
William J. Carney, president; John P. Hard¬
ing, vice-presid.ent, and J. Joseph Wright,
secretary and treasurer. Mr. Carney is well
known to the trade, having now in active
operation a number of coal mines in Iowa,
Kansas and Wyoming. The vice-president,
John P. Harding, is the proprietor of the
Planters hotel, Chicago. Mr. v/right is presi¬
dent of the Wright Coal Company, an Iowa
mining company. The general sales office in
the Old Colony building, Chicago, is in charge
of Robert L. Green, with the title of manager
of sales.
New Coal Companies.
Poteau, Okla. The Midland-Six Coal Com¬
pany of Poteau, Okla., recently reported incor¬
porated, was incorporated under the laws of the
state of Arkansas. The main office will be at
Midland, Ark., and the officers are: J. E. Finney,
general manager; T. A. Freeze, superintendent,
and R. E. McEachin, agent. The company is re¬
opening the famous Midland No. 6 mine and will
spend from $10,000 to $15,000 in getting the
property in operation. It also expects to put in
a large and modern equipped plant just as soon
as the present plant is in operating order.
Paris, Ark. The New Union Coal Company
recently incorporated with a capital of $6,000, has
for its president, superintendent and general man¬
ager H. S. Foster ; secretary and treasurer, George
M. Zeller. The location of the mine is 1I4 miles
west of Paris, and it is a slope proposition. The
development work is about completed and about
$15,000 is being expended in equipment. It will
be ready to hoist coal about August 1, and
though the capacity will be small at first it will
increase until the capacity of about 200 tons a
day is reached.
Praise, Ky. An incorporation composed of
W. O. Brothers, as president; H. B. Brothers,
secretary and treasurer; 1. C. Crige, vice-presi¬
dent, and M. L. Senter, general manager, will be
known as the Eastern Kentucky Block Coal &
Fuel Company. The company expects to be ship¬
ping coal about the first of August. B. V.
Brothers is in charge of development work, and
there will be something like $30,000 expended in
equipping the property. The location of the mines
is near East Elkhorn City, Pike county, Ky., on
the C. C. & O. R. R., near the Junction of the
C. & O. R. R. The mine is a slope proposition.
The coal is a fine, solid coal and said to be
a good one for by-product purposes.
No. 6]
THE BLACK DIAMOND
113
Facts Which Determine Our Export Prospects.
The Export Situation.
The American coal trade established a new
export record for shipments over the Atlantic
seaboard in July, by exceeding the record es¬
tablished in June, when 1,047,377 tons were
exported from Hampton Roads, Baltimore and
Philadelphia, .^.t the moment the exact fig¬
ures from Philadelphia are not available, but
figures from Hampton Roads and Baltimore
already at hand, show shipments of 707,388
tons from Hampton Roads and 334,380 tons
from Baltimore, making a total of 941,668 tons.
An estimate of 135,000 tons from Philadelphia
will make a total of 1,065,768 tons, a substan¬
tial increase over June.
The trade are very much exercised over the
cables from London on Tuesday to the effect
that the British government would restrict ex¬
ports of bituminous coal to all countries ex¬
cept British possessions after August 30. This
cable stated that they would cut off supplies
to the allies. If this is true, the United States
will have to supply coals to France and Italy,
which two countries are now taking coal from
England at the rate of 1,500,000 and 500,000
tons, respectively, per month. This will also
mean that the North sea countries will have
to take all of their coal from the United
States, as will all of the Mediterranean coun¬
tries, and all of the South American countries.
The paramount question is to secure ton¬
nage to handle this coal, should the restric¬
tion order be literally followed. It will be re¬
called that in May the British government is¬
sued a restriction order, allowing exports to
go only to British possessions and allied coun¬
tries, except by special license. It appears
that the special licenses were issued so freely
that the restriction did not amount to very
much.
As indicating the serious shortage of coal in
England, it must be borne in mind that for
one week all of the Welsh mines were idle.
Furthermore, at a mass meeting of English
coal operators held in London last Wednes¬
day, David Lloyd George, minister of muni¬
tions, announced that English industries were
short about 3,000,000 tons of coal per month.
This amounts to approximately seventy-five
per cent of England’s exports at present.
American shippers have cabled their Lon¬
don representatives to know just what the new
order means, and should they cable back that
English exports will be restricted except to
British possessions, it should create quite a
flurry in the American coal market.
We present below a statement of the ex¬
ports from the Atlantic seaboard ports for
June and July, 1915, with comparison for July,
1914, as follows:
Ports —
June 1915
July 1915
July 1914
Lamberts Point . . . .
_ 467,689
435,3.53
125,588
Newport News .
.... 121,188
211,590
48,177
Sewalls Point ....
_ 15,818
69,345
11,634
604,695
707,288
185,399
Baltimore .
_ 314,799
234,380
85,303
Philadelphia .
.... 127,783
*125,000
49,704
1,047,277
1,005,768
320,406
‘Estimated.
Foreign Freight Rates.
W. W. Battle & Co.’s produce exchange.
New York, under date of August 3, report as
follows :
A number of large British steamers were of¬
fering last week at 34s 6d, for coals to Lower
Plate ports, at which rate a few of these
steamers were chartered, but neutral tonnage
is difficult to obtain for this voyage even at
Mediterranean freights are firmer, owing to
the competition of grain, which is now ac¬
tively in the market, and rates to Cuban and
West Indian ports are also firmer, on account
of the limited supply of tonnage available for
these trades.
We would quote freight rates on coal by
steamer as follows:
West Coast of Italy
Marseilles .
Bercelona or other good Spanish port .
(Spanish dues for account of cargo)
Note. — Charters for Italy, France and Spain
read: “Lay days to commence on steamer’s
arrival at or off port of discharge, Is per net
register ton per day demurrage.”
Montevideo . about
Buenos Aires or La Plata . ...about
(Above quotations on Plate coal by British ton¬
38s@ 40s
36s@38s
35s@'37s
34s 3d
34s 6d
nage. Plate on neutral tonnage to Montevideo,
Buenos Aires or La Plata about 35s. Neutral
owners prefer Buenos Aires.)
Rosario . 36s@37s
Rio . 35s @ 36s
Santos . 35s@37s
(Consignees paying docas dues)
V'alparaiso or Callao . $6.25@$6..50
Havana . 2.25@ 2.75
Cardenas or Sagua . 3.00@ 3.50
Cienfuegos . 3.00@ 3.25
Port of Spain, Trinidad . about 3.50
St. Lucia . Z.25@ 3.50
St. Thomas . about 3.00
Barbados . about 3.50
Kingston . 2.75@ 3.00
Curacao . about 3.25 & p.c.
Santiago . 2.75@ 3.25
Cuantanamo . . . 2.75 @ 3.25
Demerara . '. . 4.25 @ 4.50
Bermuda . about 3.00
Vera Cruz . 3.25@ 3.75
Tampico . . 3.25@ 3.75
Baltimore Exports.
Exports of bituminous coal from Baltimore
for July, 1915, with a comparison with July,
1914, were as follows:
1915 1914
Italy . 80,768 .
Argentine . 28,038 6,642
Egypt . 17,685 23,064
Greece . 10,220 .
Cuba . 24,333 24,837
France . 26,191 .
Spain . 14,077 .
Sweden . 18,850 .
Venezuela . 988 .
Netherlands . 3,002 .
Peru . 371 .
Norway . 2,907 .
Montevideo . 3,953 .
Costa Rica . 3,000 7,866
Mexico . 17,257
Jamaica . 78
Japan . 5,559
Totals
234,380 85,303
June Philadelphia Exports.
Exportations of coal from Philadelphia dur¬
ing the month of June 1915, were as follows:
Country —
Italy .
Norway .
Spain .
Canada .
Cuba .
French West Indies
Argentina .
Brazil .
Colombia .
Anthracite. Bituminous.
. 10,620
. 16,915
. 12,514
3.3,814
4,559
32,368
9,309
1,280
5,387 121,379
May Exports of Coal.
The Department of Commerce through the
Bureau of Foreign and Domestic Commerce
at Washington has just issued a special month¬
ly statement on the exports of domestic coal
and coke from the United States, and the
bunker coal, laden on vessels engaged in the
foreign trade at the specified districts, during
the month of May, 1915. It follows:
Domestic Exports.
COAL. COKE.
Anthracite. Bituminous.
Districts — Tons. Tons. Tons.
Maine and New Hampshire... 1,217 .
Maryland . 298 232,866 396
Massachusetts . 1 .
New York . 18,081 3,044 628
Philadelphia . 9,614 107,645 3,591
Virginia . 445,917 5,361
Florida . 45 .
Mobile . 433 .
New Orleans . 2,530 39
Arizona . 1,124 82
El Faso . 18,968 18,674
Laredo . 2,202 .
Hawaii . 10 .
Southern California . 2 26 .
.San Francisco . . 11
Washington . 70 144 3,659
Buffalo . 147,883 152,479 35,137
Dakota . 645 1,772 157
Duluth and Superior . 58 1,031 122
Michigan . ,32,430 5,168
Ohio . 20,800 344,505 450
Rochester . 104,649 40,634 78
St. Lawrence . 117,354 16,171 973
t'^ermont . 1,977 346 55
Total . 422,694 1,404,277 74,581
BUNKER COAL.
Districts — Gross Tons,
New York . 273,142
Philadelphia . 41,532
Maryland (Baltimore") . 56.986
Virginia (Norfolk and Newport News) . 146,291
Recent Coal Freight Charters.
Steamer Nailsea Court (Br.), Virginia to Buenos .\ires,
coal, 34s 6d.
Steamer Ribe( Greek), Virginia to Rio Grande-do-Sul,
coal, 42s 6d.
Steamer Rosebank (Br.), Philadelphia to Valencia, coal,
p. t.
Steamer George Pyman (Br.), Fliiladelphia to Barcelona,
coal, p. t.
Steamer Isle of Jula (Br.), Baltimore to Alexandria,
coal, p. t.
Schooner Gen. E. S. Greeley, Norfolk to Pernambuco,
coal, $7.
Schooner C. A. Campbell, Norfolk to Para, coal, $5.50.
Schooner Annie Lord, New York to St. John, N. B.,
coal.
Steamer New Sweden (Sweden), Baltimore to Sunds-
vale, coal, p. t.
Steamer Hogland (Swed.), Baltimore to Stockholm,
coal, p. t., August.
Steamer Artemis (Nor.), Baltimore to Gothemburg,
coal, p. t.
Steamer Alcana (Ital.), Virginia to River Plata, coal,
34s 6d.
Schooner Geo. E. Dudley, New York to Halifax, N. S.,
coal, $1.90.
Steamer Deddington (Br.), Norfolk to Campana, or
Villa Constitucion, coal, 34s 6d, option Rosario 35s 6d,
prompt.
Steamers Framlington Count (Br.) and Argo (Br.),
Baltimore to River Plata, coal, p. t.
Steamer Mar Caspio (Span.), Baltimore to Barcelona,
coal, p. t.
Steamer Kaupauger (Nor.), Baltimore to Malmo, coal,
p. t.
Steamer Grekland (Swed.), Baltimore to Stockholm,
coal, p. t.
Schooner Alice M. Colburn, Philadelphia to Porto Rico,
coal, p. t.
Steamer Sif (Nor.), Philadelphia to Fort de France,
coal, p. t.
Steamer Millicent Knight (Br.), Philadelphia to Medi¬
terranean, coal, p. t.
Steamer Rothley (Br.), Norfolk to Buenos Aires, coal,
34s 6d, prompt.
Steamer Salamis (Greek), Baltimore or Virginia to
west coast Italy, coal, 36s August.
Steamer Brendon (Br.), Norfolk to Dakar, coal, p. t.
Steamer Riverdale (Br.), Baltimore to Guayaquil, coal.
p. t.
Steamers Glenmount (Br.) and Orkeld (Dan.), Phila¬
delphia to Cuba, coal, p. t.
Schooner Horace A. Stone, Philadelphia to Porto Rico,
coal, p. t.
Steamer Antwerpen (Dan.), Baltimore to Denmark,
coal. p. t., spot.
Schooner Singleton Palmer, Norfolk to Lisbon, coal,
p. t., prompt.
Steamer Skogland (Nor.), Norfolk to Colon, coal
p. t., prompt.
A Paris correspondent of the Birmingham
(Eng.) Daily Post, tells of the French coal
problem as follows: “The coal problem
threatens to absorb public attention more
and more as winter approaches. The com¬
plaints of the civil population have been gen¬
eral, and no doubt the government thought
it wise to explain the situation. M. Marcel
Sembat, minister of public works, boldly states
that there is no crisis at all so far as quan¬
tity is concerned, but only as regards prices.
He admits that from 25,000,000 to 30,000,000
tons have been cut off by the Germans holding
Belgium and northern France, and that the
needs of war and its industries increase con¬
sumption: ‘but I very much want everyone
to understand that an average of 1,500,000 tons
of coal enters our ports every month — and the
coal fields that are left to us furnish about
the same amount. Military and civil necessi¬
ties during the year of war being evaluated at
35,000,000 tons, you see we have enough to
carry us through.’ The municipal authorities
of Paris two weeks ago voted a sum of 40,000,-
000 francs to accumulate stocks for the com¬
ing winter, and depots are being rapidly con¬
structed to hold them. Partisans, however,
know that the coal they use every winter runs
into three times that figure, and at normal
prices. There are at least 500 barges and
lighters moored along the Seine that have
been idle for twelve months. There are plenty
of British coal exports blocking Rouen, but
the prices offered for canal transport to Paris
are not sufficiently remunerative. But what
need to go into these details? France consumes
every year about 60,000,000 tons of mineral
combustible, and by this present war she is
able to extract no more than about 1,500,000
tons per month from the mines that are left to
her. To make up the deficit she is absolutely
at the mercy of the British miners. But there
is something also to think of now. What is
to become of Italy, which has not a single coal
mine in her territory, and who can no longer
get German coal? Italy, too, is absolutely at
the mercy of the British miners.”
A regulation is now in force which prohibits
neutral steamers from being supplied in
British ports with more bunker coal than is
sufficient to take them to their first port of
call, excepting in a case where the vessel is
bound for French ports or to Archangel. De¬
partures from this rule will be allowed in cer¬
tain cases, and owners and agents who desire
exceptional treatment must make application
to the secretary of the board of customs in
London, giving full details of the prospective
employment of the ship in question.
114
THE BLACK DIAMOND
[August 7
General Review.
Export Trade Feature of the Coal Market
— Rainy Weather Affects Thresh¬
ing Demand.
A gradual improvement in the demand for
coal is noted at all important coal distributing
centers. This slightly increased demand in¬
cludes both the steam and domestic product.
The former is l>eginning to feel the effect of
the war order business, due to the opening up
of factories which have secured a portion of
the foreign orders now being placed in differ¬
ent sections of the country.
The improvement in domestic demand is
due to the near approach to the time when
coal will again be a necessity of life to a great
section of the country.
Almost continual foggy weather has se¬
riously hampered the coal supply at New Eng¬
land points. In spite of this the greater por¬
tion of the trade report a decided slump in
new business. This is in part attributed to the
fact that the production of bituminous coal
increased in greater proportion than the de¬
mand warranted. Anthracite to these points,
however, is in a better position and it is re¬
ported that the average Boston house did a
better July business than had been expected.
In New York the anthracite interests were
not disappointed at the relatively slow move¬
ment of the hard coal. Although August is
the last month for the reduced prices, there
was not much of a scramble to take advantage
of the discount. The bituminous trade is not
materially improved since the first of this
month, but conditions can be truly said to
have improved. The volume in movement is
not so heavy, but there is a better all around
general demand which augurs well for an
awakening in various lines of industry.
At Philadelphia there are indications that
the anthracite market will be materially im¬
proved as there has been a stiffening in the
pea coal market in the last few days. Enough
of a demand being created to advance the price
ten cents a ton, the other sizes of hard coal
have also shown strength which is attributed
mainly to the restriction in production. In
spite of the newspaper reports to the contrary,
the volume of bituminous coal passing over
the Port Richmond and Greenwich piers ex¬
ceeded the volume for the same period of last
year by a comfortaI)le margin. There was lit¬
tle demurrage coal and the piers started the
month in fair shape.
Most comforting assurances come from Bal¬
timore to the effect that record-breaking ex¬
port tonnages are expected for this month, as
well as for September. Charters already an¬
nounced indicate that it would not be surpris¬
ing to see the 300,000 ton mark left behind for
each month. The general tonnage is also im¬
proved and it is reported that the railroads
centering in Baltimore have made extensive
arrangements of their motive power in order
to be prepared for the heavy movements they
anticipate in the near future. Anthracite at
this point is reported flat with the collections
poor.
Pittsburgh reports activity in steel and or¬
ders in accumulation, but this does not seem
to aid the market to any great extent. The
closing week of the past month was the
most uneventful of the long dull season. There
are rumors of inquiries for very large tonnages
of coal for foreign consumption, one of them
being from Italy and calling for 100,000 tons
to be delivered at the rate of 500 tons a day.
The Buffalo demand for anthracite is very
light as the retail dealers are charry with
their orders. There is a plentiful supply with
most of the companies who do not expect
much of a demand until the cooler weather
appears. The bituminous trade does not show
much improvement, although it is better than
a few weeks ago.
The market in Cincinnati is reported in a
much better condition than for some time
past. Dealers and operators are maintaining
an optimistic attitude. The demand for nut
and slack is better in all departments.
Indianapolis advices are tinged with pessim¬
ism because of the unprecedented bad weather
with which the state of Indiana has been
sorely afflicted.
In the west the rains have interfered with
threshing to such an extent that scarcely any
of it is under way. Impassable roads have also
decreased the demand from the farmer trade
as well as causing the refusal of a lot of coal
which it is impossible to haul. This condition
is especially noticeable in the vicinity of
Omaha.
Chicago Market.
Restricted Output Strengthens Market —
Backward Crops Delay
Farmer Demand.
The first week in August has always been
considered the turning point of the year in
the domestic coal business. This year the
backwardness of the crops, due to the con¬
tinued rains and the absence of warm weather,
will postpone the turning period until the lat¬
ter part of the month. Some harvesting is
being done, but the bulk of the grain will not
be gathered until the middle of the month.
The taking in of coal is delayed accordingly.
After threshing dealers should begin to buy
heavily of the domestic product.
The merging of the grain moving and coal
shipping periods into one may cause some
embarrassment to the transportation com¬
panies. Operators as a rule are optimistic and
as a result are holding for prices that will
bring a fair profit on their investment.
When the market cannot absorb any more
coal at current quotations there is no hesi¬
tancy to shut down the mines. This policy has
kept consignment coal off the market, giving it
a strength that has not always prevailed at
this time of the year.
The new smokeless circular which went into
effect the first of the month calls for $1.40 for
mine-run and $2.25 for lump and egg. A rush
to cover immediate requirements was notice¬
able the last few days in July which will take
care of the trade’s needs for a short time only.
There is no wavering on the part of operators
to grant concessions by accepting coal at July
prices and what little coal is being sold is
ordered on the basis of the new circular. Deal¬
ers are of the opinion that the smokeless mar¬
ket is in a strong position owing to the ab¬
normal export business and but little tendency
is noted to break the August quotations. Prices
up to Thursday carrying the August circular
were:
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 4.30 2.25
Somerset county operators are holding off
putting a new circular into effect until they see
how strictly the Pocahontas and New River
shippers maintain their recent advance in
prices. Coal is offered this week at the July
quotations providing for an immediate ac¬
ceptance, but with the feeling that an advance
will be made as soon as it is determined that
the West Virginia smokeless shippers will hold
for $1.40 for mine run coal. Prices up to
Thursday were:
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 8.75@3.95 1.70@1.90
The Hocking market is featureless with no
change in quotations. The delay in the grain
movement has effected the demand the same as
it has for other domestic coal. Prices up to
Thursday were:
F. O. B. F. O. B.
Hocking — Chicago. Mines.
154-inch lump . $3.15 $1.50
Splint coal shippers have decided to mine
only enough coal to supply market needs and
as a result prices are stronger. Some com¬
panies making low quotations have signed up
for most of their output. Their removal as
a market influence should make for firmer quo¬
tations. Prices up to Thursday were:
F. p. B. F. O. B.
Kanawha— Chicago. Mines.
1^'inch lump . $3.05 @3.15 $1.15 @1.25
Kentucky operators producing the best pro¬
duct are now getting $1.90 for lump while a
considerable tonnage of second grade coal is
moving at twenty cents. The wide range in
the price of Kentucky is matched by the wide
range in quality. Shippers spending money to
prepare their coal probably have no hesitancy
in asking the higher price while the poorer
product must always be moved at much lower
figures. The prices up to Thursday were:
F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.25@3.80 $1.35@1.90
Egg . 3.05@3.25 1.15@1.35
The advent of the new circular brought a
rush of orders the last three days in July to
the Franklin county operators. Dealers anti¬
cipated their requirements; as a result little
coal has moved forward at the new quotations.
The screenings market held its own fairly
well considering the movement of the domes¬
tic sizes. Some coal has sold at seventy cents
and an occasional car that was up to demurrage
service brought only sixty cents. The average
quotation was about sixty-five cents. Some
shippers are making arrangements to store
their fine coal at the mines if there continues
to be a sliding market.
The prices
up to
Thursday were:
F. O. B.
F. O. B.
Franklin County —
Chicago.
Mines.
Lump .
$2.65
$1.60
Egg .
2.65
1.60
No. 1 nut .
2.65
1.60
No. 2 nut .
2.45
1.40
Mine run .
2.15
1.10
2-inch screenings .
1.70
.65
The producers of the better grades of coal
in Williamson county have put their new cir¬
cular into effect calling for $1.60 for lump, egg
and nut and $1.40 for special store. There is
some shading of prices by the smaller opera¬
tors producing coal not of standard prepara¬
tion, but this tonnage is insignificant. Screen¬
ings are a little easier, ranging from sixty to
seventy cents.
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65 $1.60
Egg . 2.65 1.60
No. 1 washed . 2.65 1.60
No. 2 washed . 2.50 1.45
Saline county operators are running their
mines only a little better than half time and
for that reason no change in the price schedule
was made the first of the month. If the
domestic business comes with a rush later in
the month this section will probably get in line
with the other producers of high grade south¬
ern Illinois coal. Screenings from this district
are in good demand at sixty-five cents. The
prices up to Thursday were:
F. p. B. F. p. B.
Saline County — Chicago. Mines.
Lump . $2.55 $1.50
Mine run . 2.16 1.10
Screenings . 1.70 .65
154-inch lump . 2.30 1.25
No change has been made in the Springfield
operators’ circular, they being satisfied to ac¬
cept orders at the July quotations. Screenings
are holding fairly well around sixty cents, while
mine run is bringing $1 and $1.10. If the anti¬
cipated demand materializes a new circular will
be issued August 15 calling for an increase of
ten cents per ton. The prices up to Thurs-
day were:
F. 0. B.
F. O. B.
Springfield —
Chicago.
Mines.
I-ump .
. $2.32
$1.50
Egg .
1.60
Nut .
1.35
Mine run .
1.05
Screenings .
.65
Coal from the Clinton field commands a bet¬
ter price in its home state and for that reason
the movement of coal to the Chicago market
is not active at this time. There is no change
in quotations, which were:
Clinton —
Domestic lump .
Egg .
Nut .
F. 0. B.
Chicago.
. 2.07
F. O. B.
Mines.
$1.60
1.30
1.30
. 1.87
1.10
Screenings .
.70
Knox county operators are gradually increas¬
ing their output and a better feeling exists
throughout the field. A partial return of busi¬
ness activity is noted in the territory between
the mines and Chicago and this condition has
helped to maintain prices on a firm basis.
Prices up to Thursday were:
F. 0. B.
F. 0. B.
Knox County —
Chicago.
Mines.
Lump . .
. $2.37
$1.50
Egg .
1.50
Mine run .
1.05
Screenings .
.62
The domestic coke market is without feature,
no chgmge in quotations occurring at this tirne.
Dealers have stocked domestic coke heavily
at the suggestion of shippers who have ex¬
tended the time of payment three and four
months. This policy may keep the ovens go¬
ing during the dull period but it is bound
to react later on. Prices up to Thursday
Coke — Chicago.
Connellsville . $4.76
By-product, foundry . 4.85@5.10
By-product, egg and stove . 4.50@4.60
By-product, nut . 4.60@4.60
Gas house . 3.75@3.90
No. 6]
THE BLACK DIAMOND
115
Pittsburgh Trade.
Steel Trades Active But Demand for
Coal Shows Little Improvement —
Coke Is Firm.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., August 5.
The coal market in Pittsburgh is one that is
hard to understand. From all reports, our steel
mills are very busy and orders accumulating, but
the bulk of the business is on lines other than
constructive, war munitions being the leading fac¬
tors that maintain plant activity, and with it all —
the demand for coal has not increased in the
open market to any considerable extent — in fact
there is practically a total absence of any spot
demand for bituminous coal in the Pittsburgh
district today, and the closing week of July end¬
ing the first half of the year was the most un¬
eventful of the long dull season, with the first
week in August showing little signs of better¬
ment at the start. Any shipping that is being
done, is on contracts that covered the larger mills
and factory supply, long ago — and the forwarding
orders on these are comparatively light, though
operators are firm in their demand for better
prices on future contracts, feeling that the con¬
tinued expansion in the steel and iron trades
cannot much longer be without its influence on
the demand for coal.
The lake trade continues to maintain a disap¬
pointing attitude, in spite of forecasts by optimists
during the past two months, who expected a
lively demand in the northwest, by harvest time,
even now one frequently hears it said that should
this trade open up to anything like normal — min¬
ing and shipping facilities would be taxed beyond
capacity to handle it within the limited period —
before the cessation of navigation. Reports from
Canadian industrial districts are not encouraging,
however, and with the still large tonnages of coal
awaiting buyers at lake shipping points it is
hardly to be expected that any excessive demand
will be felt.
With 5,000 or more miners still idle in the
nearby Ohio districts, and workings there non¬
productive — and West Virginia advertising for
miners, to enable producers there to meet the re¬
quired production for their export business, it
would appear that Pittsburgh should be very busy
with interior and other local industrial demand — •
but such is not the case, and mines continue to
operate only fifty or sixty per cent of capacity for
merchant production. The small demand for
screened coal has produced a scarcity of slack the
past few days, and prices show an upward move¬
ment accordingly. Quotations made here last week
on both coal and coke fairly represent the market
today — unless it might be stated that a stronger
feeling is shown on coal. Rumor says that quo¬
tations are being held back on a conditional in¬
quiry for a very large tonnage of coal, awaiting
developments in Ohio — it being understood the
coal will be bought there if the operators can fill
the orders. Another Italian inquiry received in
Pittsburgh today calls for quotations on 100,000
tons of coal — delivered at the rate of 500 tons
daily. Parties quoting on this, are asking an
advance.
Foundry coke has assumed a more determined
stand, as to price, with a little better demand, but
not showing anything like a boom. Prices re¬
main unchanged from quotations of last week,
on both foundry and furnace, though furnace is
reported as weaker, with a tendency to recede,
rather than advance, no large tonnages are being
talked about, and little spot buying of any magni¬
tude is reported. The pig iron situation appar¬
ently improves, and lends an element of strength
to coke that prevents anything like a decided
slump.
No river shipping has been possible the past
two weeks on account of the low stage of water
in the three rivers. The somewhat heavy rain
falls of the latter end of the week past, caused
but an ineffective rise, and produced no activity
in river coal circles. The Pittsburgh harbor is
filled with large fleets of empty coal barges at
anchor, awaiting higher stages of water, when
they will be transferred to the upper pools for
loading.
By the opening of the new lock on the Monon-
gahela river at Charleroi, Pa., last week to take
the place of that built in 1844 by the Monongahela
Navigation Company, it practically assures the
local coal companies of a satisfactory stage of
water throughout the year from the mines to the
local harbor. The new lock is 360 feet in length
and fifty-six feet wide, while the old one is only
160 feet by fifty feet. The new lock is two feet
deeper than the former.
The sale of the properties of the Pittsburgh-
Buffalo Company having been confirmed by the
courts, the Union Trust Company of Pittsburgh
have taken over the mines of the Pittsburgh-
Buffalo Company and a company to be known as
the Union Coal & Coke Company has been or¬
ganized among the officials of the Trust Com¬
pany for which a charter has been asked.
Pittsburgh News Items.
G. P. Bassett of the Bassett Pig Iron, Coal &
Coke firm is with his family at their summer
home at Nautucket.
G. A. Magoon, president of the Commonwealth
Coal Company of Pittsburgh is putting in the
month of August at Georgian Bay.
R. A. Woods of the Morris-Poste Coal Com¬
pany of Cleveland, Ohio, spent some days with
the coal trade in Pittsburgh this week.
The partnership heretofore existing between
Wm. J. Harris and Ira E. Stevens under the
firm name of the Harris-Stevens Company, has
been dissolved by mutual consent. Ira E. Stevens
retires and Wm. J. Harris will continue the busi¬
ness at room 1104 the Empire building, Pittsburgh,
Pa.
Alexander Dempster, a prominent Pittsburgh
coal operator, and formerly president of the
Monon.gahela River Consolidated Coal & Coke
Company, together with his wife and son, James
G. Dempster, 32 years of age, and their chauffeur,
Carl Williams, were killed by their car going
over an embankment near Ligonier, Pa., return¬
ing home last Monday from a trip to Baltimore.
Mr. Dempster was a well-known coal operator,
and identified with many public and private inter¬
ests in the city.
James S. Boggs and Charles W. Theis were
appointed receivers of the Meadow Lands Coal
Company by Jud.ge Ambrose B. Reid in Common
Pleas Court on the third of this month. The
appointment of the latter receiver was made after
a conference between counsel for the bankrupt
company and the creditors, while the former has
served for several weeks as temporary receiver.
The court fixed the bond of the receivers at
$10,000 each. A statement filed with the court
shows that the company has an authorized capi¬
tal stock of $600,000, of which $599,400 is issued
or outstanding. The liabilities or bonded in¬
debtedness of the company was stated to be
$725,560.65. The receivers are preparing to re¬
sume operations very shortly.
Examiner C. V. Burnside of the Inter-State
Commerce Commission, heard testimony last week
in Pittsburgh in the complaint- of the Pitt Gas
Coal Company, against rates charged it by the
Pennsylvania Railroad. At the conclusion of
testimony counsel were instructed to file briefs.
The petition filed by the coal company averred
that the rate of ninety cents a ton on coal from
the Bescor siding of the company near Frederick-
town. Pa., to Ashtabula Harbor, for reshipment,
is unreasonable and discriminatory in favor of
competing shippers in Kentucky and West Vir¬
ginia. The company’s mine is located 2.4 miles
out of the Pittsburgh zone for the shipment of
coal. The rate in the Pittsburgh zone is seventy-
eight cents a ton. J. C. Venning, general coal
and oil agent for the railroad, testified that he
believes an extension of the Pittsburgh zone to
include Bescor siding would result in a general
move on the part of the coal companies to extend
the zone indefinitely. He declared that competi¬
tion on the part of the carrier and competition on
the part of the operator are two of the things
taken into consideration in determining what ter¬
ritory constitutes a zone.
St. Louis Trade.
St. Louis, Mo., August 5, 1915. — {Special Cor¬
respondence.) — The first of August brought a
slackening in the coal trade, due perhaps to the
fact that the prices on nearly all grades of coal
advanced. Most operators went into the month
well fortified with orders, and consequently are
not soliciting business actively. The general situ¬
ation is better than usual at this time of the
year. The Franklin county operators are acting
as a unit. Their prices seem very well main¬
tained. The Williamson county fellows seem to
have profited by the example of their Franklin
county brothers, and are maintaining prices bet¬
ter than usual, with one or two small exceptions.
The operators in the standard district are do¬
ing a great deal better than they have done in
past years, in the way of holding out for the
price. The Standard district is a much larger
field than any of those in southern Illinois, and
the organization is not so closely knit. However,
the various operators are showing a disposition
to work together, which has never been seen be¬
fore in this part of the country.
Prospects for business in general are good.
There is an expectation that domestic business
will be unusual, because trade as a rule has been
holding off during the summer months, and nat¬
urally there is bound to be a congestion of busi¬
ness when the buying movement begins in
earnest.
Prices on Standard coal are as follows :
„ ■ , , Mine
6-inch lump . $1.10
3x6 egg . 1.00
2-inch lump . go
2x6 egg . 85
No. 2 nut . 80
ly4-inch screenings . 60
St. Louis
$1.67H
1.5754
1.4754
1.4254
1.3754
1.1754
The Mt. Olive coals are beginning to move
much better in the north and west. In St. Louis,
locally, the demand remains about the same.
6-inch lump . $1.25 $1.8254
2-inch lump . 1.20 1.7754
2-inch screenings . 60 1.1754
The demand for Williamson county coal is
slowly but surely improving on domestic sizes.
Screenings, as to be expected, are getting weaker.
6-inch lump . $1.35@1.60 $2.0754 @2.3254
6x3 egg . 1.35@1.60 2.0754 @2.3254
3x2 nut . 1.40 2.1254
154-inch screenings . .60 1.3254
Franklin county operators report business very
much improved. Orders for a few days have
fallen off owing to price advances, but there is
no doubt they will be coming in freely again by
the first of next week. By the 15th of the month
it is certain that all of the Franklin county mines
will be running full time.
6-inch lump . $1.40@1.60 $2.1254 @2.3254
6x3 egg . 1.40@1.6n 2.1254 @2.3254
3x2 nut . 1.40@1.6 0 2.1254 @2.3254
Stove . 1.35 2.0754
154-inch screenings . 65@ .70 1.3754 @1.4254
Anthracite is not moving very well. The ad¬
vance in freight rates has everybody guessing,
and buyers do not care to place orders until the
situation settles down. Of course whatever coal
was in transit under the old rate was readily
disposed of.
Chestnut . $7.45
Stove or egg . 7.20
Grate . 6.85
Both smokeless and coke are moving better.
Gas house coke, all sizes . $4.25
By-product coke, all sizes . 4.50
Smokeless lump or egg . 4.75
Smithing . 4.25
Omaha Trade.
Omaha, Nebr., August 5. — {Special Corre¬
spondence.) — General conditions in this territory
are still very much depressed on account of the
rainy weather followed by a drop in the tem¬
perature. The thermometer re.gistering fifty-two
degrees above yesterday, which is a record-breaker
for August in this vicinity. A great deal of wheat
is under water and scarcely any threshing is be¬
ing done, consequently very little coal is moving
out of dealer’s bins.
The market is rather firm with exception of
the coal which has been refused principally on
account of impassible roads, making it impossible
for the dealers to haul the coal.
The following market prices prevailin.g;
Southern Kansas —
Mines.
Omaha.
Nut .
$3.20
Slack .
2.70
Franklin County —
Lump .
3.75@4.00
Egg . . .
. 1.35@1.60
3.75@4.00
Nut .
. 1.35@1.60
3.75@4.00
Williamson County —
Lump . .
8.65@3.75
Egg .
3.65@3.75
Rock Springs —
Lump .
_ 2.15
5.86
Nut .
. 1.60
5.35
Arkansas Anthracite —
Lump .
. 3.70
6.60
Broken sizes .
. 3.95
6.85
Omaha News Notes.
C. R. Spalding, western sales manager for the
Wickham Burton Coal Company, is renewing old
acquaintances in Omaha this week.
B. H. Kemper of the Bell Zollar Coal Company
was in town this week looking after his personal
interests in Omaha. His many friends in Omaha
are glad to see H. B. making a success in the coal
business, although they regret to lose him as a
neighbor.
116
THE BLACK DIAMOND
[August 7
Cincinnati Trade.
Market in Better Condition — Contract
Coal Shows Activity — Labor
Shortage Noted.
Cincinnati, Ohio, August o. — {Special Corre¬
spondence.) — The market at this writing is in
much better condition than it has been for some
time. Dealers and operators are much more op¬
timistic than for some weeks and the general
opinion seems to he that the tide has turned and
that it will slowly, but surely, turn business back
into its old channels and that improvement now
will he apparent. It is believed that prices will
first be affected, for the reason that both labor
and transportation are becomin.g tighter. Then
coal dealers will wake up to the fact that they are
out of fuel and there will be a frantic rush for
orders that will swamp the coal dealers in the
wholesale end of the market, and the operators.
To this, if it should materialize, there will be a
general chorus of “amens.”
Tliere is no question of a better demand for nut
and slack in all departments, a great deal of it
in search of cheap products that have disappeared
from the market. Many of the dealers are turn¬
ing down inquiries for nut and slack for two
reasons. One reason is that the inquirers are
not offering what the holders deem a fair price
for it, and second, where a fair price is offered
dealers are turning it down 'for the reason that
they are not in an active market for lump and
will not sacrifice that product which probably
will be in frantic demand in thirty days from
now. There is a little demand for egg which is
now starting toward a better basis of business.
This is all in reference to splint coal. Lump is
not yet in active demand, althou,gh mine run and
egg are in better demand and the lake movement
is much better.
Some August quotations in West Virginia splint
are as follows: Lump, $1.50; egg, $1.25; run of
mine, ninety-five cents ; nut and slack, seventy-five
cents, with some acceptances of spot at sixty-five
cents in the lower grade product. Another field
which also conforms pretty well to the Kentucky
situation, gives the followin,g figures : Four-inch
block, $1.50; egg, $1.20; run of mine, ninety
cents ; nut and slack, sixty-two spot and seventy-
five contract. The later inquiries in nut and slack
in both fields are heavier and it is likely by the
fifteenth prices will go up at least five to ten
cents on this grade of product.
In reference to the car shortage it may be said
that the Chesapeake & Ohio is nearly up to its
limit and that it has borrowed quite a number of
the Hocking Valley Company’s cars, made idle
by the abandonment of the valley by the Sunday
Creek Coal Company, and by the closing down of
other mines. This is not a dispara.gement of the
company’s resources for they never were better.
Rut so many of the hoppers, especially, have been
tied up in the coast movement for export, that
they are very much more scarce than usual, and
this makes a drain on the gondolas that thins out
that line of cars.
Regarding the labor shortage with many of the
smokeless mines it may be said that the United
States Steel Corporation is pushing its coal sub¬
sidiary in West Virginia so vigorously night and
day and almost offerin.g any old wages to get
men into their mines, that miners are flocking
there from all over the state. The mines are up
to their capacity, night and day, for the needs
of the big steel company are urgent just now, and
miners who want to work can get it there, if any¬
where. This shortens the forces in other mines
and some of them complain to selling agencies
that they cannot get out their orders promptly
for that reason.
This week dealers say that contract makers are
comin.g into line and that while a few contracts
just now are being made at a little lower than
last year’s prices, yet by the middle of the month
contract prices will be on a much better basis
and that by September 1 there will be no trouble.
Indeed the middle of this week found many
northwestern dealers using the telephone and
the telegraph freely. So solicitous were some of
those desiring to contract that they cross-ques¬
tioned the operators as to their ability to deliver
if they should enter into contract. In other words
the buyers now seem to be endeavoring to buy
delivery rather than product. It seems evident
to Cincinnati coal men just now that the low
tide has passed by and that from now on the re¬
covery will be gradual, steady and satisfactory.
Cincinnati News Notes.
J. Ray Quinn, sales manager of the Central
Fairmont Coal Company of West Virginia, was a
visitor to Cincinnati early in the week,
E. C. Evart of Chicago, general manager of
the White Oak Co;d Comparty, paid a visit
Wednesday to the local offices of the company.
It is reported here that Harry Brown of Pitts-
Inir.gh will establish offices here soon and that he
will ship coal south from Pittsburgh from his own
mines, operating five small boats for the purpose.
new shaker screen outfit is being constructed
l)y the Webb Fuel Company, at its Ebony mines
on the Cabin Creek branch of the Chesapeake &
Qhio Railway. The improvements are e.xpected
to lie completed by September 1.
The Winifrede Coal Company’s steamer ‘Wini-
frede” is at Point Pleasant, undergoing repairs
and overhauling, under direction of Captain John
E. Lyons, who is also huilding thirty new barges
at Hig.ginsport, for the coal trade in Pomeroy
and along the Ohio.
The E. L. Sternberger Coal Company, which
has had offices on the sixteenth floor of the
Eirst National bank buildin.g for many years,
is removing to the seventeenth floor of the same
Iniilding, to larger and more suitable rooms
e.xactly above the former quarters.
O. W. Gardner, sales manager of the Chesa¬
peake & Ohio Coal & Coke Company of Norfolk,
Va., was a visitor to the offices of G. E. Weber,
the western agent of the company this week.
Mr. Gardner finds that the coal situation is grow¬
ing better each day except that prices continue
low and demand is still timid.
The diver who has been examining the hull of
the sunken steam tug, the Convoy, belonging to
the Hickey Coal Company, has made a report
which indicates that the boat is probably not
worth the effort to lift it and repair it for future
use. It is likely the salvage will be undertaken
by the insurance company which insured it and
which will take it off the hands of the Hickey
Company.
President E. J. Howe of the Cincinnati Coal
E.xchange has been invited by the Cincinnati
Chamber of Commerce to participate in an effort
to bring the 1916 meetin.g of the National Coal
Dealers’ Association to Cincinnati. A committee
will be appointed by President Howe to take up
the matter with the convention department of the
Chamber of Commerce and to formulate plans
for the campaign.
Judge J. A. Herron, a well-known coal sales¬
man, formerly connected with the local offices of
the Pocahontas Fuel Company, but for a few
days a salesman under Tom Morgan of the Pluto
Block Cannel Coal Company of Cannel City, Ky.,
has accepted position with the Webb Fuel Com¬
pany of this city and started Sunday for his new
field of operations, which is Michigan. He will
cover the entire state and have headquarters at
Detroit.
River coal men in this district are interested
in the announcement this week that Col. Lansing
H. Reach has been assigned to duty here as
United States engineer in charge of the Central
Division of the Ohio river and its tributaries.
Colonel Beach was stationed in Cincinnati twenty-
nine years ago as a lieutenant, but remained only
a short time. He came this time from Baltimore,
having been seven years in change of the Gulf
division as division engineer.
President E. J. Howe of the Cincinnati Coal
Exchange has named C. R. Moriarty, C. A. Trib-
bey, R. O. Heyser, E. R. Minor and James A.
Reilly aides to the grand marshal of the parade
of the Chamber of Commerce, which, after three
quarters of a century of existence without it, has
decided to ha\-e an official outing for its members
and the members of the many auxiliary bodies
connected with it. The outing is booked for next
Thursday, August 12, and promises to be a gala
event. Fifty aides, including the five coal men
above named, will make an imposing feature of
the parade.
An application for compensation with the State
Industrial Commission of Ohio opens up an in¬
teresting point, and may cause a declaration of
conditions in certain coal companies. The appli¬
cation is filed by Mrs. Williams, widow of Captain
Bradford Williams, who lost his life in the big
storm of July 7. The state law insures the lives
of employes of industrial companies who take out
policies, and it also protects employes of com¬
panies who carry their own insurance. The law,
liowever, reaches only Ohio corporations, of
course. Captain Williams was supposed by his
wife to be employed by the Queen City Coal Com¬
pany, an Ohio corporation, which carries the in¬
surance of its employes on its own risk. It tran¬
spires that Captain Williams was in the employ
of the Monon.gahela River Consolidated Coal &
Coke Company, predecessor here of the Queen
City Coal Company, and also a foreign corpora¬
tion. If he were in the employ of the Queen City
Company his widow is entitled to the insurance
provided by the company under the Ohio law, but
if he were in the employ of the Monongahela
river company she is not entitled to compensa¬
tion. James A. Reilly, manager of the Queen
City Company', however, has announced that nego¬
tiations are on with Airs. Williams by which a
satisfactory settlement will be reached.
L. J. Alueller, assistant to E. F. Bardin of the
Wyatt Coal Company here, is taking two weeks’
vacation with his wife and little one on his farm
up the Big Miami, some distance above Cincinnati,
.\ row is probable over the award of the water
works contract, Saturday by the municipality of
St. Bernard, a suburb of Cincinnati, not yet in
the big corporation. The contract was advertised
and bids invited for .'?,600 tons splint, nut and
slack, delivered, Amon.g the bidders were the
Reliance Coal & Coke Company, $1.59; the Hal-
mar Coal Mining Company, $1.59 ; Bell Coal &
Mining Company, $1.60; B. H. Wess, $1.64; West
Virginia Coal Company, $1.70; Kentucky South¬
ern Coal Company, $1.70, and Fred Krehe, Jr.,
$1.80. The award went to Fred Krehe, Jr., son
of the treasurer of the municipality, although as
seen above, there were several lower bidders. The
award created considerable indignation and the
defeated bidders say they will contest, not be¬
cause of the award to a higher bidder, but be¬
cause they claim that the law of Ohio is ex¬
pressly violated in the fact that Fred Krehe, Jr.,
is not a legal bidder, they claim that his father
is the real beneficiary, which they say is a crim¬
inal offense under the law which expressly forbids
the officer of any community to participate in a
profitable capacity in the business of the muni¬
cipality, in other words, to do business in a
private capacity where his official acts may make
him a beneficiary. The unsuccessful bidders are
contemplatin.g testing the law in the case.
Louisville Market.
Louisville, Ky., August 5. — (Special Corre¬
spondence.) — There has been evidence of a fur¬
ther improvement in the market for both steam
and domestic coal during the past week. The
coal trade has learned to control its expectations
to very moderate things during the past year and
to console itself with the observation that “every
little bit helps.” Therefore, it need not be as¬
sumed that there is any riotous upturn in prices
or any radical broadening of demand. There is,
however, evidenced a considerable broadenin.g of
demand for steam coal, due to apparent increase
in industrial activity, and a visible improvement
in the demand for domestic coal, which, of course,
is only seasonable.
Even when all encouragement is taken into
consideration, it must be admitted that the do¬
mestic buying is extremely backward and that
not in a great many years has an August rolled
around without the operators, both of eastern and
western Kentucky, having a plentiful supply of
domestic orders at much better prices than the
present. However, there is jiist enough en¬
couragement in the situation to lead producers
to believe that for at least a brief period durin,g
the fall months, there will be something like a
normal demand for coal at something like normal
prices.
Buying by dealers in the big cities is prac¬
tically nil, and the country dealers are furnishing
the bulk of the orders for domestic coal. At
that, the farmers are still comparatively busy with
crops and a general demand for country coal will
probably not arrive for some thirty days, at
which time, there is every reason to expect, a
heavy rush. Indeed, shippers in this district are
prepared to see a fierce flurry of orders during
September and October, which may tax the capac¬
ity, both of the mines and the railroads.
Labor conditions in southeastern Kentucky
continue somewhat uneasy, but although the Cat¬
ron’s Creek Coal Company mine in Harlan county
has been closed down several days by reason of
a strike of miners caused by the company’s ac¬
tion in dischargin,g two of their number who
had been unduly active in welcoming the union
organizers, it does not appear that the attempt
to organize the Harlan county mines has made
any progress as yet, and it is predicted that the
one mine which has been closed down will re¬
sume in the next few days.
No. 6]
117
Indianapolis Trade.
Indianapolis, Ind., Aii.gust 5. — {Special Corre¬
spondence.') — It would be difficult to note any ma¬
terial change in the coal trade in Indiana. At
least it would be difficult to locate any change for
the better within the past few days. Weather
conditions have been adverse. It would be out
of the ordinary to speak of a “weather market’’
in the good old summer time, hut the weather
has handicapped industrial concerns so that the
demand for steam coal, already too low for July
and August, is even lower than it was. Heavy
rains have put a crimp in many lines of business.
Rains and storms have cost the farmers hundreds
of thousands of dollars in Indiana within the past
month so that coal consumers in the rural com¬
munities are not in a hopeful frame of mind.
The loss to them is bound to be felt in other
lines. The threshing season which generally helps
out in the demand for domestic coal has been cut
short and made unnecessary in many localities
by the cloud bursts. Something ought to chase
the hoodoo within the next few weeks. The de¬
mand for steam coal is such that it is pleasing
to be able to state that prices are holding fairly
level. Mine-run ranges from $1.00 to $1.20 a
ton at the mine, according to the grade. There is
a little improvement in the tonnage of Indiana
mine-run for the Chicago market, but the trade
with Chicago is not up to what it generally is
for this time of the year. Screenings are fairly
strong at seventy to eighty cents at the mine.
Domestic lump is selling around $1.40 at the
mines, $1.50 being the top price. Now and then
some inferior domestic sells below $1.35. The
operators say that the retailers have smaller stocks
than usual on hand which is a good sign. When
the demand does pick up among the retailers they
will have to have coal in a hurry which is bound
to help strengthen the market. There is compara¬
tively little coal above ground in Indiana so that
it is reasonable to predict that within a short
time prices will stiffen and that the demand will
pick up to what it was at this time a year ago.
The Indiana wholesalers are quoting the fol¬
lowing prices ;
F. O. B. F. O. B.
Indiana — Mines. Indianapolis.
No. 4 mine run . $1.10@1.20 $1.60@1.80
Nos, 5 and 6 mine run . 1.00@1.10 1.50@1.60
No. l%-\nch steam lump . 1.30@1.40 1.80@1.90
Nos. 5 and 6 1% steam lump.... 1.20@1.30 1.70@1.80
No, 4 egg . 1.30@1.40 1.80@1.90
No. 4 nut . 1.30@1.40 1.80@1.90
No. 5 egg . 1.20@1.30 1.70@1.80
No. 4 screenings . 80@ .85 1.30@1.35
Nos. 5 and 6 screenings . 70@ .75 1.20@1.25
Domestic lump . 1.40@1.50 1.90@2.00
No. 1 washed coal . 1.75 2.25
No. 2 washed coal . 1.65 2.15
Brazil block domestic . 2.00@2.10 2.50@2.60
Southern Indiana Field —
No. 5 mine run . 1.00@1.05 .
Domestic . 1.40@1.50 .
Detroit Trade.
Detroit, Mich., Au.gust 5. — (Special Corre¬
spondence.) — With a slight increase during the
week in the amount of coal coming to Detroit, the
local shippers, or some of them at least, continue
to take a more optimistic view of the situation
than has been apparent during preceding months.
It is asserted a material strengthening of mar¬
ket conditions seems in pro.gress, being reflected
through the increasing volume of business done
in small order lots. While neither steam nor
domestic coal shows especial activity a better in¬
quiry is appearing, denoting an inclination on the
part of buyers to drop the attitude of indifference
which has been a discouraging feature of the De¬
troit market for some time.
Were it not for the consignment coal, its un¬
settling effect on prices and the resultant curtail¬
ment of mirie shipment orders, the outlook at pres¬
ent would seem quite cheerful, some of the ship¬
pers say. The quantity of stock that comes to
forced sale is still sufficiently great, however, to
make it possible for watchful buyers to renew
their supplies at prices considerably shaded below
schedule.
\Vhile for the better quality of fine coal and
slack sixty-five to seventy-five cents is demanded
a very good quality of West Virginia slack is
bought around forty-five cents and occasionally
even cheaper. West Virginia lump at from one
dollar to $1.10 on forced sale is to be had fre¬
quently enough, also to make watchfulness and
delay profitable to the consumer. Eg.g sizes are
not as readily sold.
Shipment of coal over the lake route continues
to fall short of expectations and is proceeding in
volume much lighter than for many years, due
largely to the fact that little storage space remains
THE BLACK DIAMOND.
on docks at the head of the lakes from which the
movement to consumers has been greatly retarded.
The light movement of coal hits owners of in¬
dependent carriers particularly hard, as sales of
iron ore have been lar.gely increased during July
and ore cargoes would be available to many of
the wild boats, but for the fact that freighters
owned by shippers are being sent up the lakes
without cargo and are receiving a dispatch that
makes a round trip in seven and eight days pos¬
sible in many instances, where twelve or fourteen
days might be required if the ships had carried
coal. By thus increasin.g the carrjdng capacity
of the shippers fleets, the lack of coal cuts down
on business which independent owners had reason
to expect their boats would receive.
Anthracite seems not to arouse much interest
on the part of retailers yet. A rush of orders is
expected later in the month.
Prices in the local market are as follows :
F.O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
$3.35@2.40
Mine run .
_ .80
2.20
Slack .
_ .50
1.90
West Virginia Splint —
hour-inch lump .
2.90@3.00
Two-inch lump.., .
2.65
Three-quarter .
_ 1.10
2.50
Mine run. . .
2.30@2.40
Nut, pea and slack .
1.90@2.15
Smokeless —
Lump and egg .
. 2.00
3.60
Nut .
3.10
Slack .
Open
Mine run .
Open
Kentucky Splint —
Lump .
_ 1.40@1.50
2.80@2.90
Egg .
_ 1.10
2.50
Nut, pea and slack .
Open
Fairmount —
Three-quarter steam lump, . . .
2.25@2.35
Mine run .
. 70@ .80
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
_ 1.50
2.65
Shaker egg and nut .
_ 1.15
2.30
Domestic lump .
_ 1.35
2.50
Three-quarter lump .
_ 1.25@1.30
2.40@2.45
Mine run .
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
- 1.15
2.30
Mine run .
_ 1.05
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
- 2.50
3.65
Cambridge —
Three-quarter lump .
_ 1.20
2.35
Mine run .
_ 1.10
2.25
Pomeroy —
Two and three-inch lump. . . .
_ 2.15
3.30
Egg .
_ 1.60
2.76
Slack .
Open
Clinton —
Domestic lump .
. 2.07
1.30
Egg .
1.30
Nut .
1.20
Mine run . .
. 1.87
1.10
Screenings .
_ 1.62@1.67
.85® .90
Birmingham Trade.
Birmingham, Ala., August 5, 1915. — (Special
Correspondence.) — The coal production is im¬
proving a little. Every time a blast iron furnace
or a foundry starts up or puts on additional
workmen, there is need for more coal. The pro¬
duction right now is considerably better than it
was three months ago, but it cannot be stated
that mining operations are back to the normal
conditions of the district.
There is a splendid output at some of the big
mines. A large volume of business has not yet
reached the smaller mines, and there are many
mines throughout the Birmingham district which
are yet to get contracts that will keep them go¬
ing more than two and three days a week. There
is a feeling, however, that coal will soon be in
demand by many industries which use coal. The
general tone of the market is better than for
some months. This is more particularly true
with regard to steam and coking coals. Much
of the increased demand for coal is largely cok¬
ing, which is due to more iron furnaces being
in blast than since the advent of the European
war. There' is also some little increase in de¬
mand for steam coal.
There is a belief that arrangements will be
finally consummated through the war department
at M'ashington by which the Tennessee Comiiany
proposes to ship many thousand tons of coal
per annum down the river into New Orleans and
other places. Lessening the freight on coal from
fifty to seventy-five cents per ton into New Or¬
leans would give an advantage to the ilistrict
that would he most interesting and would liring
about a condition in mining circles that would
he very encouraging.
Domestic coal has not felt any increased de¬
mand. While some small contracts are still be¬
ing received, shipments are to he made at later
dates. The coke market is good and demand
heavier than for months.
The following are the prices of coal, though
they vary some ;
F. O. B. F. O. B.
Jefferson County — Mine B’ham
Pratt Fancy Steam Lump . $1.70 $2.10
Furnished by T. C. 1.
Pratt Mine Run, 90c to $1.15. Frt. rate, 30c.
Jefferson Seam, steam coal, $1.15 to $1.25. Frt.
rate, 30c.
Black Creek, steam, $1.25 to $1.55.
Walker County —
Horse Creek, steam mine run, 90c to $1.10. Frt.
rate, 40e,
Carbon Hill, lump domestic, $1.60 to $2.00.
Most all coals based on this classification.
There are no stable prices, but these serve as
Itasis from which prices vary either up or down.
Blacksmith coal, washed and screened, per torn,
$2.00 to $2.25 at mines, with different rates to
various points.
Alabama’s Annual Report
The report of C. H. Nesbitt, state mine in¬
spector, is compiled in attractive booklet form,
and contains much valuable information in regard
to the mining industry of Alabama. According
to the report, there were several new mines
opened up in .A.labama during 1914. There were
during 1914, two hundred and sixty-three mines
in operation in Alabama. In regard to the rather
low output for 1914, Mr. Nesbitt says : “While
there was considerable decrease in the year just
closed, it is gratifying to know that the pro¬
duction was largely in excess of anticipation, in
view of the fact that local as well as general
trade conditions throughout the entire country
have been very unfavorable.”
Alabama’s coal production for the year was
15,525,903 tons against the 17,907,284 tons of the
year previous, according to the report. The coke
output for 1914 was 3,092,771, which was 438,7.34
less than the year before.
Fatalities during the year were 128 in number,
and they resulted in forty-two widows and sixty-
four orphans. There were forty-two serious
non-fatal accidents.
Tonnage in the four coal fields of Alabama is
given as follows : W’arrior Field, 12,942,255 ;
Cahaba, 2,553,274; Coosa, 27,095; Plateau, 3,279.
Following this is a statement of coal tonnage in
-Alabama by seams, and the number of fatalities
in each seam.
Classified fatalities show that fall of rock
caused 42.8 per cent of fatalities, while explosion
of gas was next, and then death by tram cars.
The inspectors and their districts are as fol¬
lows: First district, in which Jefferson county
is included, W. P. Smith ; second district, David
Kelso; third district, J. F. W’ebb ; fourth dis¬
trict, T. H. Tinney; fifth district, Frank Hill¬
man, and sixth district, Thomas Roscoe.
New mines opened during the year were as
follows : Benoit, Benoit Coal Company, Walker
county; Phillips, Sipsey Coal Company, Walker
county; Risco, Republic Iron and Steel Company,
Jefferson county; Blocton No. 9, Tennessee Coal,
Iron and Railroad Company, Bibb county; New
Acton, Alabama Fuel and Iron Company, St.
Clair county; Brilliant No. 1, South Brilliant
Coal Company, Marion county ; Graves No. 2, T.
J. Hoskins & Co., Jefferson county.
Birmingham News Notes.
The Mobile Coal Company is making arrange¬
ments to handle six or more barges to handle
coal down the river for use of its customers. Mr.
Danner, president of the company, thinks he can
get his coal cheaper by river. The coal will be
supplied by DeBardeleben and the Empire Coal
companies.
.'\nnouncement was made during the week that
the Tennessee Coal, Iron & Railroad Company
was preparing to use the barges of the Alabama
& New Orleans Transportation Company down
the river. This coal will he mined by the Ten¬
nessee Coal, Iron & Railroad Company in the
western part of the Birmingham district, at
Fdgewater and Bayviewq and will be shipped in
quantity, via the Ensley -Southern Railroad to
Salters Bluff and then by barges of the Alabama
& New Orleans Transportation Company to New
Orleans. The coal will be dumped right off the
railroad bridge to the liarges, and it is esti¬
mated that many thousands of tons will be
barged down the river annually. ft is under¬
stood a contract has lieen made that will con¬
tinue for two years, and a rate most favorable
to both interests has been made. The Tennessee
Coal, Iron & Railroad Company is now shipping
a large quantity of coal via rail to New Orleans,
Mobile and other southern ports.
118
THE BLACK DIAMOND
[August 7
New York Trade.
Anthracite Trade Marks Time — Bitu¬
minous Outlook Much
Brighter.
Office of The Black Diamond,
New York, August 5.
There were very fewy if any, members in the
anthracite trade who expected the first week
in August to show any improvement, and so far
the forecast has not been shown wrong. Trade
is very dull, and will likely continue so for sev¬
eral weeks at least.
August is the last month for summer dis¬
counts, the discount for this month being ten
cents per ton. There is not much of a scramble
to take advantage of this reduction. On account
of surplus stocks of certain favored sizes, like
egg and chestnut, many of the individuals con¬
tinue to offer these sizes at a concession of from
twenty to forty cents and in some instances fifty
cents per ton. Heavier concessions, however, are
confined usually to cargoes or stocks at tide¬
water that are up to the demurrage stage and
have to be moved. Individuals are not naming
such radical concessions for coal to be shipped
from the mines.
July was the second month of the extremely
low production, and it is expected that when the
official figures are out later in the week, that
they will show that not more than 5,000,000 tons
were shipped to market during the month. In
July of last year, shipments amounted to 5,391,-
857 tons. There has been no improvement in pro¬
duction, most of the mines still working on a
three day per week schedule. Some believe that
they will not be able to improve this working
schedule later in the month, unless something of
an unexpected nature should happen.
Just now considerable attention is being paid
by the operators to the campaign of the United
Mine Workers to increase membership in the
anthracite regions. It is generally believed that
the operators are going to face on April 1st,
next, when the present agreement with the miners
expires, one of the stubbornest fights that they
have yet had. Mine workers officials are making
a thorough canvass of the anthracite districts in
an effort to enroll members.
The short time mining is bringing about a
shortage of some of the choice grades of the
steam sizes, rice particularly being short at the
moment. There is a very good inquiry for good
grades of rice at New York harbor ports, with
most of the high grade brands out of the mar¬
ket because of the fact that they are under con¬
tract. This week offers on good grades of rice
range from $3.05 to $2.30 per ton. Some of the
inferior grades are available from $1.85 to $2.05.
The demand for No. 1 buckwheat is not so good,
and this size is in free offering, prices practically
unchanged. Barley is in little better demand be¬
cause of its growing scarcity. There is still a
surplus of pea coal, and this is obtainable at
$2.90 to $3.50, according to the grade and port.
The Bituminous Situation.
The bituminous trade is not materially im¬
proved since August set in, but conditions can
be truly said to have improved. While the vol¬
ume of coal moving is not so heavy, except with
certain favored producers, there is a better gen¬
eral all around demand, consuming interests here
and there calling for more coal, so that there is
in the air, so to speak, indications that general
business will soon be humming at such a rate as
to bring such a demand for bituminous as will
make the business as active as in the early part
of 1907.
Here are some reasons why coal men are look¬
ing for better business from now on : Enormous
war orders recently placed will mean the con¬
sumption of large quantities of coal and coke.
Then, there are evidences that further war
orders of unprecedented size are still to come.
The belligerent countries to which we can at
present ship, are now beginning to buy heavy
materials, cars, locomotives, rails and steel of all
kinds, that mean railroad tonnage. When these
begin to move in large volume it will bring about
the employment of more railroad equipment and
likewise the consumption of more coal for rail¬
road fuel. Moreover, big employers of men are
increasing wages. This gives labor more money
to spend. This goes for general manufactures.
And what is more promising to the tidewater
shippers, is the remarkable growth of seaboard
exports. June showed over a million tons, July
will exceed this by about 25,000 or 50,000 tons,
the June record, while bunker requirements for
July were larger, and these will continue to grow,
as England has now restricted sales of bunker
coals, allowing neutral vessels only a sufficient
quantity to take them to their first port of call.
Heretofore, many cargo steamers coming to
America in ballast, took enough English coal for
the round trip. Now they will have to take
bunkers here. Add to the above the most re¬
cent order of the British government restricting
shipments of coal after the thirteenth, to British
possessions only. This will cut off the allies,
large consumers that the United States will have
to supply. There is every reason to believe that
America will soon be called upon to ship 2,000,-
000 tons per month into export over the Atlantic
seaboard, and this will mean a most active tide¬
water market.
At New York harbor ports there is ample un¬
sold coal for all present needs, though not in as
large supply as formerly. Cheap coals may be
obtained at $2.35 and up at the ports ; good
grades of Pennsylvania at $2.55 to $2.65 ; choice
grades, $2.75 to $2.90.
The Vessel Situation.
Vessel rates for coastwise charters continue at
about the former range. Vessels have been un¬
duly delayed by fogs and gales during the past
week, so that there is likely to be a shortage of
tonnage at the lower ports in a week or ten
days.
We quote current rates as follows :
From Hampton Roads to Boston, seventy-five
to eighty-five cents ; to the Sound, seventy to
eighty cents.
From New York rates to New Haven are
thirty cents. New London, forty cents, and
Providence and New Bedford, fifty cents; to
Boston, fifty-five to seventy cents ; Portsmouth
and Portland, fifty-five to seventy cents ; to
Bangor, seventy cents. Harbor rates are from
eighteen to twenty cents.
Prices on gross tons
of bituminous coals are :
F. O. B. F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
. $2.85
$1.30
Medium grades .
. 2.60
1.10
Ordinary .
. 2.55
1.00
Cambria County —
Best Miller vein .
. 3.00
1.40
Cheaper grades .
1.05
Clearfield County —
Best grade .
1.35
Ordinary grades .
. 2.50
1.00
Indiana County —
Best grade .
. 2.80
1.25
Medium grade .
. 2.50
.95
Maryland —
Georges Creek big vein. . . .
1.65
West Virginia Splint —
Ordinary grades .
. 2.40
.75
Best gas, )i-inch lump....
Best grade, run of mine..
1.10
. 2.65
.90
(ias slack .
.5o@ .70
New York Trade Briefs.
J. W. Whiteley, of Whitney & Kemmerer, No.
143 Liberty street, visited Boston on Tuesday.
Frank Smith, who covers the Long Island trade
for the Lehigh Valley Coal Sales Company, is
away on his vacation.
W. S. Wolle, eastern sales manager of the
Lehigh Valley Coal Sales Company, returned on
Monday from his vacation, which was spent in
the Adirondacks.
Henry Metz, office manager of the New York
office of the Quemahoning Coal Company, No.
17 Battery place, is spending a two weeks’ vaca¬
tion in the Adirondack mountains.
The Timmerman Coal & Ice Company has been
granted a charter under the New York state
laws. The capital stock is $10,000. Incorporators
are Charles A. Timmerman, Ida Timmerman anii
Vernon E. Mump of Westerleigh, Staten Island.
William D. Leeds, the well known coal broker
of No. 1 Broadway, is now located in room 276,
with a new telephone number. Rector 4050. Mr.
Leeds represents mines operating in the Georges
Creek, Broad Top, South Fork, Nant-y-Glo and
Somerset regions.
Tuesday’s cables announced that the American
schooner Laura C. Anderson, loaded with 1,700
tons of coal, and sailing from Newport News for
Melilla, Morocco, had been seized by a British
cruiser and taken into Gibraltar. The schooner
was loaded by the American Coal Exporting
Company of No. 1 Broadway.
P. B. Heilner, vice-president and general sales
manager of the Lehigh & Wilkes-Barre Coal
Company, No. 143 Liberty street, returned on
Monday night from a trip to the Panama-Pacific
exposition, and a tour of the northwest. Mr.
Heilner was gone just about five weeks. This
was his first vacation in about four years, and
he reports having had a very interesting trip.
G. B. Markle & Co., the well known anthracite
operators, have completed the new steel breaker
at their Jeddo No. 5 operation, and it was put
to work on Monday of this week. This work has
been completed in a remarkably short time.
This, too, despite the fact that the breaker has
been equipped with the most modern improve¬
ments in breaker machinery, which takes time to
install. The plant will have a very large output.
The Johnstown Democrat reports that The
Dexcar Coal Company of Ashville, Pa., which
is controlled by the Dexter & Carpenter, Inc., in¬
terests of No. 12 Broadway, New York, has lo¬
cated another rich vein of coal which extends
through a large acreage, and which has existed
elsewhere in more or less uncertain quantity.
The Democrat states that the Dexcar mines have
been put on a larger working basis.
The Continental Coal Company, having de¬
faulted in the payment of interest on its first
mortgage five per cent coupon gold bonds on
August 1st, a protective committee of bondholders
has been formed, and a deposit agreement has
been prepared under which the Guaranty Trust
Company of New York will be the depositary of
the committee, and bondholders who have not
already done so, are asked to deposit their bonds
with this depositary. Charles H. Sabin of the
Guaranty Trust Company is chairman of the
committee.
The automobile truck manufacturers continue
to derive great prosperity from the European
war. A cable from Paris to the New York Sun
on Wednesday, stated that the French govern¬
ment had closed a contract through J. P. Morgan
& Company, to take the entire surplus motor
truck output of the Packard, White and Pierce-
Arrow companies for an indefinite period. It is
estimated that France already has purchased ap¬
proximately 2,500 from the companies above
named, and other companies have secured orders
aggregating 1,500 from the same source.
As the European war means so much to
American industries at this time, and therefore,
to the coal trade in general, it is interesting to
note the opinion expressed by William E. Corey,
an ex-president of the United States Steel Cor¬
poration, who returned from France this week,
which is that the war will be continued for three
or four years. Mr. Corey said : “I believe fully
that the war will last three to four years longer
because the allies are going to fight the struggle
to a finish. The allies are now preparing to
continue the fight at least three years more. War
orders are being placed years ahead. It is a war
of mechanics and chemistry. The allies are mak¬
ing every effort to preserve friendly relations
with this country. They look to the United
States to a large degree for their financial sup¬
port, especially if the war should continue a
number of years. Then loans will have to be
floated abroad.”
The annual statement of the Lehigh Valley
Railroad shows an increase in net income of
$734,214 in net income, in the year ended June
30. Owing to the dissolution of the Temple Iron
Company, the road did not receive any dividends
from it, as against $685,080 from this source for
the previous year. One million dollars was
marked off as depreciation of the book value of
the stock of Coxe Bros. & Co., Inc. The rail¬
road company is making many improvements,
among them the construction of a modern steel
and concrete coal dock at Buffalo. F. M. Chase,
vice-president of the Lehigh Valley Coal Com¬
pany, in his annual report showed a total net in¬
come of $1,022,814, an increase of $457,955.
The production of anthracite coal from the
mines owned and leased by the Lehigh
Valley Coal Company, including that mined by
tenants, was 8,088,901 gross tons, an increase of
211,511 tons. In the bituminous mines 258,205
gross tons were mined, an increase of 5,474 tons.
A London dispatch says that Lloyds ship-
build returns, which owing to the war is con¬
fined to merchant vessels, shows that there
were 434 steam vessels of 1,505,025 gross tons
and eight sailing vessels of 1,900 tons under
construction in the United Kingdom in the
quarter ending June 30, 1915, or 81,000 tons
less than at the end of the previous quarter,
and 215,000 tons less than the corresponding
period of last year. During the quarter end¬
ing June 30, this year, seventy-four steamers
of 147,964 gross tonnage were launched.
No. 6]
THE BLACK DIAMOND
119
Philadelphia Trade.
Pea Coal Advances in Price and Consider¬
able Strength Develops in
the Market.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, August 5.
With this the last month of the discount on an¬
thracite there promises to be an awakening in
that branch of the trade which will justify the
opinion held by many of the middlemen and oper¬
ators, i. e., that the 1915 period should be about
as heavy in the volume of business as has been
seen in some years. Already some of the straws
have been showing the direction of the wind.
There is an old saying, “When pea coal sells well,
all of the other sizes will follow.” There has
been a stiffening in the pea coal market in the past
few days, not enough to bring about a standard
price or, to be more correct, a set price, but
enough to make some of the companies which have
been selling this kind of coal on a short margin,
advance the price a dime on the ton.
The report of the Bureau of Anthracite Statis¬
tics will show that the production for the month
of July was slightly under that of corresponding
month in last year. Taken with the fact that
June of this year also showed a decrease, it can
be seen why there should be a stiffening in price.
One more thing. Inquiry for deliveries usually
comes the last week in the month, but this year
the coal dealers got repairs made to their yards
early and some orders were placed this week for
mid-month delivery.
The re-arrangement of price for August on the
sizes is as follows :
Lump . $3.50
Steamboat . 3.50
Broken . 3.30
Egg . 3.65
Stove . 3.90
Chestnut . 4.05
Pea . $2.00@2.50
Buckwheat . 1.50
Because of the restriction at the mines there has
been considerable strength shown to the buck¬
wheat sizes and high grade coals have been sold
at a little advance over the ran.ge of prices that
have been current for the past six weeks.
The Bituminous Situation.
Despite the newspaper talk which has been cur¬
rent there was a severe falling off in the export
of soft coals during the last week of the month,
the report of the Port Richmond and Greenwich
piers show that the tonnage which passed over
has been of much greater volume than for the
corresponding month of last year. Most of the
coal taken from this port for the past ten days
has been bound for European points and there
has been only a scant shipment here and there to
South America.
The month started with piers in a fair shape so
far as over-crowding was concerned. There was
little demurrage coal to be called on and some
agents who had foreign boats to load had a little
trouble getting enough cars to fill up. This does
not necessarily mean that there is an indication
of it being a profitable venture to consign cars to
this point. A jam can follow a few over-eager
ventures and those who are willing to “take a
chance” had better be fore-warned.
Greensburg shipments are still being held
around $1.00 for run of mine and $1.10 for
screened. Quite a large movement of coal from
this section is going forward to Baltimore while
some little is being exported through this port.
Reports from the Connellsville district to the
effect that all available ovens are working and
that miners are being sought from other fields,
is taken as an indication that the local steel and
iron trade look forward to increasing capacity in
leaps and bounds.
The cement trade has been a keen taker of
Fairmont slack during the past week and the
price has advanced to fifty-five to sixty cents a
ton and with a scarcity or further restriction at
the other and there is liable to be a further ad¬
vance noted.
Philadelphia News Notes.
M. S. Sears of Hetherington & Company is away
on his vacation and will return in two weeks.
Walter P. Maguire of the Makoma Coal Com¬
pany at Harrisburg, Pa., was one of the visitors
of the week.
Thurston Knight of Pittsburgh, made a tour of
the eastern offices of the Merchants Coal Company
during the past week.
J. A. Emmons of the Emmons Coal Mining
Company, returned from a trip to New England
points the fore part of the week.
William H. Speer of Chambersbur.g, Pa., paid
a visit to coal associates while going and coming
from a Sunday holiday spent at Atlantic City.
L. A. Hickley of the Island Creek Coal Sales
Company was a visitor to Johnstown, Pa., this
week. Another Johnstown visitor was F. M.
Ramsey, Jr., of the Glen Brook Coal Company.
William Kline of the forces of the Island Creek
Coal Sales Company at Cincinnati was one of
the western people who passed through here on
the way to the sea shore.
R. B. Isner, assistant general mana.ger of the
Davis Colliery Company at Elkins, W. Va., paid
a visit to the local office while en route to New
York.
W. F. Coale of Cumberland, Md., visited the
local offices of Coale & Company this week. Fred
Coale, his brother, put in the week end visiting
the “home-folk” down in Maryland.
Mrs. S. J. Mounts of S. J. Mounts & Company,
and who manages the operations of that concern
at Smithville, Pa., was affiusiness visitor of the
week.
H. H. Lineaweaver, head of the firm bearing
his name, left this week for a month’s vacation,
which will be spent with his family in the Penn¬
sylvania mountains.
Fred W. Foedisch of F. W. Foedisch & Com¬
pany was placed on the list of the maimed and
injured. He sprained his leg while at Ocean City
on Sunday.
J. E. Haverstick, manager of the bituminous de¬
partment of Ayers & Brothers, left the middle of
the week for a couple of weeks holidays at Mar¬
tha’s Vineyard on the New England coast.
Because two miners at the William Penn opera¬
tion of the Susquehanna Coal Company in the
Shenandoah district refused to wear union but¬
tons, over 1,000 men walked out the latter part of
the week.
F. W. Cortright fooled the doctors who had
him ready for an operation for appendicitis.
After an x-ray, examination failed to reveal any¬
thing like a condition that they had opined, Mr.
Cortright concluded to get well and was at his
desk Monday morning.
S. M. Kendall of Meyersdale, Pa., and who
represents the Listonburg Coal Company, with
operations in the Connellsville district was an
early week visitor. He said that the most of the
ovens in the district had been fired and that ar¬
rangements were being made to open some new
ones.
C. C. Gano, who was expected back home this
month, apparently has found so much business
to handle in the South American republics that
it will cause him to remain there for another six
months. At Gano, More & Company’s office it
was announced that Mr. Gano had established
headquarters in Rio de Janeiro and that he would
not return for another six months at least. Mrs.
Gano sailed to join her husband last Saturday.
New England Trade
Boston, August 5. — {Special Correspondence.)
—Almost continual foggy weather outside since
last reports has seriously influenced the move¬
ment of coals to New England points. As a mat¬
ter of fact many of the local agents have been
unable to deliver a ton of coal during the past
week.
Less than a half dozen wholesale bituminous
houses have about all the business they can pos¬
sibly handle. A majority 'of the trade, however,
reports a decided slump in new business. The
firmness noted last week in the f. o. b. Hampton
Roads market appears to have disappeared en¬
tirely, for shippers are reported as making con¬
cessions in the hope of moving New River and
Pocahontas. The production of these coals dur¬
ing July increased in greater proportion than the
demand did, the export demand being disappoint¬
ing. The result was that stocks running to and
standing at shipping points show considerable ac¬
cumulation.
At Mystic Wharf there continues practically no
spot market. Anybody having a cargo of such
bituminous to dispose of there would find much
difficulty in doing so at a profit. What few sales
have been put through at Mystic Wharf recently
have been at the minimum price of $3.60 per ton
on cars. No sales of Georges Creek have been
made there, chiefly because nothing has been of¬
fered. Thus it is evident that very nearly every-
, thing coming into Boston is on contract.
Pennsylvania bituminous, according to one local
dealer, greatly resembles the Russian army for
it is being steadily pushed back into the back¬
ground. Many of the Pennsylvania mines are
being operated but three or four days a week, but
stocks have accumulated nevertheless. The offi¬
cial range of quotations on Pennsylvania is 90
cents to about $1.25 per ton on cars at the mines,
but it is intimated that even lower prices might
be accepted if a considerable tonnage was in¬
volved. Standard 72-hour Connellsville foundry
coke is quoted at $6.25 per ton at Boston common
points.
The local wholesale anthracite market is in a
relatively better position than the bituminous is.
Water shipments have been exceedingly unsatis¬
factory to be sure, but considerable coal has been
received throughout New England by rail. The
average Boston house did a better July business
than expected, and contrary to the general belief
some unfilled tonnage was carried over into the
new month. At the moment Maine and the
provinces are active buyers of anthracite, retail¬
ers and other large consumers evidently having
made up their minds that freight rates were more
apt to advance than decline.
Notwithstanding this increased activity many
of the local dealers are inclined to look for a
quiet August. Everybody puts in the proviso,
however, that possible labor troubles at the mines
next spring may stimulate trade in the meantime.
Although the regular August advance of ten cents
per ton in prices has been made by the important
shippers, independents in a great many instances
have made no change in their schedules except,
perhaps, downward. Small amounts of independ¬
ent nut are reported as having been offered here
on an April basis, but on other grades prices
seem firmer. Stove and egg alongside Boston
Harbor is usually quoted at $5.75 per ton, nut at
$6, and pea at $4.05. At Mystic Wharf, stove and
egg bring $6.20 per ton and net twenty-five cents
per ton more. Broken can be had at Mystic
Wharf at $5.65 to $5.70 per ton on cars, and
about the same at Portsmouth. In the closing
days of July, the demand for buckwheats was
much better than it had been previously, but deal¬
ers had to turn down orders owing to the fact
that their washeries were closed and they were
unable to get the coal. No. 3 bucks are generally
quoted here on a basis of $1.80 per ton f. o. b.
New York, and birdseye at $2.
The marine freight rate market is practically
unchanged. The demand for space continues
fairly active, but owners of vessels have not felt
justified in advancing rates. From Hampton
Roads ports to Boston the average asking rate is
seventy-five to eighty cents per ton, and from
Philadelphia to Boston rates are about the same,
while from Baltimore to Boston they average five
cents per ton more. For anthracite space from
New York to Boston fifty to fifty-five cents per
ton is usually asked. From New York to the
Provinces, shippers are getting $1.25 per ton or
even more for carrying anthracite.
New England Trade Notes.
The shares of the New River Company have
been enjoying a period of strength on the Bos¬
ton Curb Exchange as a result of greater ac¬
tivity at the company’s property.
The Federal Coal & Coke, Company, a subsidiary
of the New England Coal & Coke Company, in
June produced 70,000 tons of coal, which is the
largest amount ever produced by the company in
any one month.
The funeral of Elmer E. Cole was held at his
home in Billerica, August 1. Mr. Cole for years
was in the coal business, and was widely known
in Massachusetts. His death occurred at Bethle¬
hem, N. H., where he went in search of health.
The funeral services were attended by members
of Thomas Talbot Lodge, A. F. & A. M. ; Boston
Chamber of Commerce, Billerica Board of Trade
and many Boston, Lowell, Billerica, Chelmsford
and Bedford friends.
Newspaper advices from McDonaldton, Pa.,
state that contracts have been awarded for
the erection of twelve more houses for the
Brothers Valley Coal Company, which has
headquarters in New York City. The big
plant has a housing problem on hand. The
mines are working full time, and a large num¬
ber of miners are being employed. There are
not enough houses to accommodate the fam¬
ilies of these men. Recently a number of
houses were burned and the miners families
have been put to inconveniences since. Houses
are very scarce up the surrounding territory,
too, and the officials have been contemplating
the buildings since the fire. It is estimated
that more houses will be ordered built before
the summer season is over.
120
THE BLACK DIAMOND
[August 7
Buffalo Trade.
Buffalo, N. Y., August 5. — {Special Corre¬
spondence.) — The anthracite shipments by lake
for July were 449,012 tons, a large falling off
from the same month last year, when shipments
were 810,410 tons. The total to August 1 this
year was 1,869,390 tons, as compared with 2,219,735
in the corresponding period of last year. The
shipments for the past week showed some in¬
creased movement and amounted to 139, 900 tons,
as follows : Milwaukee, 49,000 tons ; Duluth-Su¬
perior, 46,900; Qiicago, 29,900; Ashland, 7,600;
Fort William, 6,.500. This is the largest shipment
to Alilwaukee in some time. It is hardly likely
that the present month will be as busy in the lake
coal trade as the same month was last year.
The docks at the other end of the lakes are in a
number of instances well filled with coal and the
same condition will no doubt prevail through this
month.
The retailers are not ordering anthracite to any
extent, so the rail demand is light. No improve¬
ment is looked for right away, and it may be
cold wearther before any big increase in demand
‘will take place. Most sizes are in plentiful sup¬
ply with all the companies.
The bituminous trade is not showing any late
improvement, though it is better than a few
weeks ago. Orders are not bein.g placed at all
freely and there is some cutting of prices. The
improvement in the steel trade is quite marked,
however, and coal men expect to see increased
business as a result. But .the general situation
is not satisfactory and any change for the better
is likely to be gradual. The lake trade has been
a disappointment all this season and it is still
quiet. No activity is looked for until coal begins
to move away from the docks more freely. Some
mines are busy shipping to the lakes, but they are
the ones which have favorable freight rates or
some other advanta.ge over their competitors.
There is a good deal of complaint that some
operators are getting rates which show discrimin¬
ation, and certain mines with a long-haul freight
rate are doing a pretty good business on low-
priced coal.
The Canadian market is depressed as for some
time and few new accounts are being opened
there, as collections are below normal and credits
are uncertain. Many concerns are now workin.g
on filling war orders, but domestic factories and
other industrial concerns are doing little. Better
times are looked for this fall in Canada.
Buffalo News Notes.
Max G. Voelkler, sales agent of the Youghio-
gheny & Ohio Coal Company has gone on a
two weeks’ fishing trip to Oswego county.
\V. H. Mufstader, vice-president of the J. B.
Jenkins Coal & Coke Company has been con¬
fined to his home for several w'eeks by illness.
J. T. Roberts, sales agent of the Widnoon Coal
Minin.g Company has returned from a vacation
trip of about 1,400 miles into Pennsylvania. His
automobile demonstrated its economic value by
cutting expenses to about one-third railroad fare.
The new box-car dump which the Lehigh Val¬
ley Railroad is buildin.g at its coal trestle on the
Tifft Farm is getting on so fast that it is ex¬
pected to be ready for use in al>out a month.
This will take the place of the old wooden coal
trestle entirely and is expected to unload a box
car in two or three minutes, and in that respect
will be a novelty in the business of handling coal.
The prospect of buildin.g the Lackawanna lake
shipping trestle at the mouth of the Buffalo river,
ordered by the Secretary of War, is somewhat
changed from the time the order was issued in
the spring. The company filed its plans before
August 1, as directed, and when it found that
the work could not be done until the state moved
the Erie Basin breakwater. This work cannot be
done right away, and may not for a year or two.
The state is deepening the Erie Basin just back
of the present trestle and will remove the break¬
water when it gets to it, as the basin is now
protected by an outer breakwater. It is not likely
that anybody will complain if the Lackawanna
work is delayed indefinitely.
Two persons were killed and five injured on
August 2, when the automobile of Mrs. John W.
Ross, wife of a Rochester coal dealer skidded on
a freshly-oiled road near East Pembroke, about
forty miles east of Buffalo. The two who were
killed were Mrs. Paul West, twenty years old,
and Charles West, five years old. Mrs. Ross
sustained a broken rib and bruises, and others of
the party were painfully cut and bruised. Mrs.
Ross was formerly the wife of Charles C. West,
a well-known Rochester coal dealer, and she is
the mother of the boy who was killed and the
mother-in-law of Airs. Paul AVest. The party
was en route from Rochester to Niagara Falls
when for some reason the car skidded and turned
turtle, three of the passengers being pinned be¬
neath it. Airs. Paul West’s head was severed
from her body.
Baltimore Trade.
B.vltimore, August 5. — (Special Correspond¬
ence.) — With exports again jumpin,g after a brief
drop the first part of July, the coal trade is look¬
ing for some record-breaking figures either during
August or September, or possibly for both months.
During July a total of about 235,000 tons are load¬
ed here as cargo coal for foreign ports. The last
week of the month saw a movement of nearly
66,000 tons. With the large number of charters
already announced for August and September
loading here it would not be at all surprising to
see the 300,000-ton fi,gure left well behind for each
month.
Along with the big movement of export coal
the general tonnage is also on the mend. From
most of the mining centers which are controlled
from this city, or in which shippers here are par¬
ticularly interested, come reports that there is
an almost daily increase in the amount of coal
being called for. True this increase so far has
not brought the demand abreast of production pos¬
sibilities, and prices have remained low, but the
whole tendency of the situation is now apparently
upward.
Speaking from a strictly local viewpoint, a
steady increase in fuel demands may be expected
here now that many of the lar.gest firms are work¬
ing on big war orders. There are probably thirty
or forty large war orders, or parts of orders on
sub-contracts, now being worked out by plants in
Baltimore. The railroads here are all preparing
for a fall rush. For instance the Baltimore &
Ohio Railroad, with more than 100 idle loco¬
motives standing in one of the terminal yards here
because of drop in freight traffic, last week turned
out thirty reconstructed locomotives from its
shops to add to this standing list of motive
power. The officials confidently expect that within
a comparatively few weeks all the motive power
will be needed for prompt freight movement.
That an increased coal business will make Up a
big part of this is the firm belief.
Anthracite dealers here report that business
is flat and collections are poor. The present
summer is one of the dullest in the history
of the trade. That the fall will be a busy
one seems assured, however, as many people who
must have coal, and who ordinarily have it in the
bins by this time, have neglected so far to get
under cover.
Prices in the bituminous fields, as mentioned,
have shown no particular sign of rejuvenation as
yet, although there is a little more inclination not
to let much fuel go at practically sacrifice rates.
Prices to the trade at the mines may
be quoted
as follows :
F. 0. B.
F. O. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
$2.23@2.2S
Run of mine .
2.1S@2.23
Slack .
1.88@1.98
Somerset —
Best .
2.43@2.48
Good .
_ 1.10@1.15
2.28@2.33
W. M. R. R.—
Freeport .
. 75@ .80
1.93@1.98
B. & O.—
Freeport .
1.93@1.9S
P. R. R.—
Best South Fork .
_ 1.30@1.35
2.48@2.53
Miller Vein .
2.78@2.83
Ordinary .
2.03@2.08
Baltimore Trade Notes.
The Bartlett-Hayward
Company of
Baltimore
has closed negotiations for the manufacture of
about $12,000,000 of war supplies for the allies.
The Pennsylvania Railroad will shortly award
a contract for the new coal pier in Baltimore.
Dredgin.g the approaches is already being done by
the Mayland Dredging Company.
C. G. Appleton has Eeen sent to Baltimore to
take charge of the export business of Dexter &
Carpenter of New York. An office has been
opened by Air. Appleton in the Continental build¬
ing.
W. F. Coale, general manager of the” Georges
Creek Coal Company of Cumberland, Md., was a
Baltimore visitor the past week. Another visitor
was J. S. Brophy of the Piedmont and Geor.ges
Creek Coal Company of Frostburg, Aid.
W. Goche of the Francois Coal & Coke Com¬
pany of Clarksburg, W. Va., was one of the
visiting coal men in Baltimore the past week
who predicted an early turn for the better in the
fuel trade.
Of foreign charters' announced the past week
six were for South American delivery, five for
Sweden, two for Italy and one for Spain.
Toledo Market.
Toledo, Ohio, Au.giist 5. — (Special Correspond¬
ence.) — There are no new features to the market
here but the slight improvement which has been
noted for the past couple of weeks continues to
hold and gives every evidence of permanency.
There has been nothing of a startling nature but
generally the call has been better and prices are
a little better maintained than has been true for
some time past. The rate reduction made by the
Hocking Valley Railroad Company has not im¬
proved the situation to any extent according to
local dealers and there is general dissatisfaction
as to the territory covered by the rate decrease.
There is a trifle of weakness noted in the smoke¬
less market recently and there is a tendency on
the part of some operators to shade the price a
little in order to secure orders. Prices were in¬
creased a little on Au.gust 1 as follows :
F. O. B. F. O. B.
Smokeless — Toledo Mines
I.ump an.l egg . $3.70 $2.25
Mine rim . 2.85 1.40
The demand for Hocking coal continues light
and the threshing demand is very slow because
of the extremely wet weather which has made it
impossible for farmers to get into their fields to
do their threshing. Alany farmers in this section
have been unable to cut their oats. This, of
course, has taken from the market some of its
natural impetus. The rate decrease has made no
noticeable difference as yet. Price quotations fol¬
low :
F. O. B. F. O. B
Hocking — Toledo Mines
3- inch lump . $2.50 $2.35
lJ4-i”ch lump . 2.40 2.25
^-inch lump . 2.35 2.20
Egg . 2.25 2.10
Nut . 2.15 2.00
Mine run . 2.10 1.95
Alassillon is practically a dead issue here and
very little is moving at any price.
F. O. B. F. 0. B.
Massillon — Toledo Mines
Lump . $3.25 $2.50
Washed nut . 3.25 2.50
But a few of the Pomeroy mines are being
operated and the demand continues very light.
F. O. B. F. 0. B.
Pomeroy — Toledo Mines
Domestic . $2.60 $1.60
Egg and nut . ; 2.35 1.35
There is some call for West Virginia products
for domestic use and there is, of course, quite a
good deal of coal being shipped in for lake
movement. Otherwise there is little change in
the situation.
Kanawha Gas —
54-inch lump . 2.30 1.05
Mine run . 2.20 .95
Fairmont —
154-inch lump . 2.30 1.05
44-inch lump . 2.20 .95
Mine run . 2.10 .85
F. O. B. F. 0. B.
Kanawha Splint — Toledo Mines
4- inch lump . $2.75 $1.50
2-inch lump . 2.65 1.40
44-inch lump . 2.40 1.15
Mine run . 2.25 1.00
Pittsburgh No. 8 operations are light and the
demand is extremely low. Prices remain un¬
changed.
Pittsburgh No. 8 —
lJ4-inch lump . 2.40 1.40
44-inch lump . 2.20 1.20
Mine rui: . 2.10 1.10
Youghiogheny is securin.g its usual quota of
orders which, however, is not large in this ter¬
ritory.
Youghiogheny —
Mine run . 2.45 1.20
44-inch steam lump . 2.55 1.30
Blossburg Smithing —
Prepared size . 3.20 1.75
Lilly smithing, prepared size . 3.20 1.75
Kentucky operations seem to be fairly good
and a number of the mines are running pretty
well. The demand is fair.
F. O. B. F. 0. B.
Kentucky — Toledo Mines
4-iiich lump . $2.90 $1.65
Egg . 2.50 1.25
Nut. pea and slack . open open
Cambridge, like all steam grades, is light as to
demand and not speciallv firm as to price.
F. O. B. F. q. B.
Cambridge — Toledo Mines
Mine run . $2.10
44-inch lump . 2.20 1.20
154-inch lump . 2.40 1.40
Cannel continues quite active and prices are
unchan.ged.
Cannel — » „ .n
Kentucky Cannel lump . $4.60
Pennsylvania Cannel, egg . 3.60 2.15
Pennsylvania Cannel, lump . 4.20 2.75
Ohio Cannel . 3.85 3.00
The Black Diamond |
Vol. SS. No. 7 ggLSfrus AUGUST 14. 1913 PPAKSSh $3.00 Per Year
Theory Underlying the Kuhn Mining Machine.
Last week there was told the news — the naked
facts — about the mining and loading machine
which H. A. Kuhn of Pittsburgh has perfected.
That is to say, an eye, more or less trained to
such things, observed the details of the machine
and made such notes as coal men might find of
interest. The details as to procedure and ton¬
nage were given accurately but, even so, the
first article presented merely the body and the
mechanics of the device. Nothing was said about
the basic theory of it. Before this article' is fin¬
ished it will be found that the theory bears the
same relation to the machine that the soul does
to the body ; it makes it live and gives it char¬
acter.
There is something definitely human about the
Kuhn machine— perhaps because it expresses its
author so much. For this reason, alone, it is
impossible to understand this machine without
understanding something of the man who is re¬
sponsible for it. So we will begin to tell of the
machine by saying something of H. A. Kuhn.
His min'd has a capacity for independent think¬
ing which — seeing such a faculty is uncommon-
can only be made clear by an incident or two and
a comparison.
Some years ago — it must have been all of fifteen
— the writer of this article was reporting the rail¬
road news for a daily paper and W. R. Wood¬
ford, of Cleveland, was president of a railroad.
One day he said — he was trying with the utmost
tact and kindness to correct a common tendency :
“You never can get the truth about any rail¬
road by adopting the Wall Street, the legislative
or its competitor’s point of view toward it. You
must, on the contrary, learn to study each rail¬
road as a unit. You must get first its financial
facts, its traffic facts and its physical facts. Then,
after seeing what relation these bear to each
other, you must decide for j^ourself whether it is
a good property or a bad one and whether it is
properly managed. You must think for your¬
self.”
Independent Thinking.
His was a formula for railroad analysis, but it
was more ; it was a complete course in independ¬
ent thinking. It opened a new world, for it took
away all the borrowed opinions upon which most
of us depend and sat a man down in the midst
of a medley of naked facts to construct for them
a theory comprehensive enough to take in all of
them without doing damage to any one of them.
He outlined a thinking process which can be
likened only to packing eggs in a crate ; each one
must be fitted exactly in place, yet all of them
must remain whole. By way of comparison,
most of us who borrow our opinions are careful
of one egg only ; we think a lot of others while
we bestow especial care upon one or two.
This old lesson on how to think was exempli¬
fied when H. A. Kuhn began to talk about
mechanics — and other things. Indeed, so little
time as an hour with him will convince any man
that his mind follows no beaten path of thought
on mechanics or anything else. Still, he is no
revolutionist because he deals solely with accepted
principles, yet he cuts free and clear of prec¬
edent. of borrowed opinions, and of most ac¬
cepted notions when it comes to grouping his
devices into a machine or to making a coal com¬
pany pay. That is, he has a high regard for
established truths without thinking it necessary
to worship a commonplace arrangement of things.
As an example of how he begins to work at a
problem and to solve it, he said :
“.\merica must get 40,000 new miners in its
coal fields every year merely to produce the in¬
creased tonnage demanded first by an increase in
population and second by an increased comsump-
tion per capita. Also, America must get 20,000
more miners every year to replace those who are
graduated out of the mines into other industries.
This means that America must get, from some¬
where, 60,000 new miners every year.
“Native Americans do not take naturally to the
coal fields, regardless of the fact that we are the
greatest mining nation on earth. Also, the sons
It Must Save on Labor Cost and Increase
the Output Greatly Without Using So
Much Power That One Saving Is Offset
by Another Expense.
of imported miners do not adopt the trade of
their fathers here as they do in Europe. There¬
fore, these 00,000 new miners annually must come
mainly from abroad. The time is coming when
we will not be able to depend upon an ever in¬
creasing flood of foreign workers. Then, what?”
That naked fact gave him a starting point. He
knew that, because of a growing population and
a larger use per capita, a steadily increasing
production of coal is inevitable. He knew, too,
that — expecially since the European war — we
must count upon a decreasing supply of foreign
labor. His conclusion was unavoidable :
“We must have a machine which can mine and
load coal and which will allow the miners now
in the fields to do the nation’s work.”
He had there the skeleton work of what he
had to do. Later, he filled it out by adding
many specifications, but that was not done until
he had spent years of hard work and more than
a hundred thousand dollars in experimentation.
Having a definite object in mind, he worked at
it methodically. He was an engineer by profes¬
sion but spent his days directing a big business —
so he hired a corps of engineers to get together
a library on mining machines. He has a detailed
description of every device ever used or pro¬
posed in America, England, Belgium, Germany
and France. This library is indexed and cross
indexed. It is compiled by subjects and by de¬
vices. It is arranged chronologically and alpha¬
betically. You can begin at the bottom and work
to the top or you can reverse the process. Which¬
ever way you go about it, you can get from him
all of the known information on the subject.
After that, he wpnt to all of these countries
to study both the conditions and the devices. He
saw some machines work. He talked to old men
about abandoned devices and learned why they
failed.
This method of procedure was sufficiently
orthodox to please even a Presbyterian clergy¬
man. It is mentioned here only to show that he
has a proper reverence for the old things and for
the accepted notions. Right there he threw
orthodoxy in the scrap heap and began, inde¬
pendently of the voluminous literature, to work
the problem in his own way. He said at first —
and none too wisely as it proved ;
The First Theory.
“Lump coal production is a mistake. It is not
right to mine it that way; it is not right to try
to burn it in big pieces. Therefore, the proper
mining method is to rip it out of the seam regard¬
less of size. I’ll build a machine which will tear
its way back to the boundaries of the acreage and
then, in a furious campaign, will gut the mine
retreating. I’ll let the roof fall after me if it
wants to but I’ll get the coal quickly and get it
cheaply.”
That was his first object. Consequently, he
built several mining machines which would attain
it. One, a compressed air machine, stood about
as high as an average man and filled an ordinary
entry from rib to rib. He put it up against a
face and turned on the power. It began to tear
out the coal so fast it was dangerous even to
stand behind it. Some of these machines mined
coal, all right, but they had two fatal defects.
Some dug coal so fast that nothing short of a
continuous belt conveyor could have carried it
away.
Each required practically an entire air com¬
pressor or dynamo on the surface to supply it
with power.
That is, he could mine and load coal mechan¬
ically and could reduce the labor cost, but used
too much power. Indeed, the increased power
cost ate up the saving on labor. The only thing
he did was to solve the labor problem but that
was not enough.
So, when he had taken the power readings and
had computed the cost, he abandoned all these
machines. He threw them — and his work and
outlay — into the scrap heap. They are now only
relics. He abandoned not only the design but
also the very theory according to which they had
been constructed. In the light of that experience,
he said ;
“It costs entirely too much to tear coal out of
the solid by machinery. My next machine will
mine coal in as large lumps as can be produced
by skilled hand labor. It will handle coal ten¬
derly. If the users want small coal, we can
break it on the surface. The next time I will
build a machine to mine and load coal but to do
it with a minimum amount of power.”
His associates protested; they hoped to save
something out of the wreck. But Mr. Kuhn
would not listen. He abandoned the idea not
because of any flaw in his mechanics but because
the basic theory was wrong.
The Revised Idea.
Then began the work of constructing the new
theory and of designing a new machine which
would fit it. This ended in the demonstration
reported last week.
The first question asked and answered was :
How can coal be broken down at the face
while using machinery and still with the mini¬
mum use of power?
Undercutting and using powder is the universal
practice. Mauling it down by machinery alone
had just been proved too expensive. Shooting
off the solid is too much like suicide. What
cheaper way — what new arrangement of methods
— was possible?
It took months of study to find the answer.
Mr. Kuhn words his final conclusion somewhat
after this fashion ;
“Powder is an impartial agency which exerts
its force when exploding in all directions from
the starting point. An explosion is, in fact, the
instantaneous conversion of a solid into gas.
Since the gas takes up much more room than the
solid, something has to give way. Therefore, if
the point where the explosion takes place is near
the rib and roof, those absorb as much of the
force as does the coal to be brought down. Thus
only about one-half the force of the powder is
exerted to, break down the coal. The other half
is devoted to crushing coal or doing damage to
the roof, mainly. This so damages the roof that .
it will come down at a touch. To avoid this,
there is need for men either to support it or to
remove what has fallen. Either one increases
the cost of mining.
“I decided to place the shot where all the
force of the exploding powder would be used
to shock the block of coal that I wanted to re¬
move. This led me to place the powder hole in
the center, vertically, of the face and a little
away from the rib.
“This would throw all the force of the shot —
unless too much powder were used — into only
the coal that was to be taken out at once. That
is, the downward pressure of the shot would
break down the lower half of the vein, this
operation being assisted by the undercut. The
upward pressure of the explosion would not be
working against a cut, hence it would start merely
the natural cleavage lines in the coal. To one
side the force of the explosion would back up
against the rib.
“This accounts for the exertion of force in
three directions. What about the effect of the
shot in the fourth direction?”
It was such penetrating analysis which gave Mr.
Kuhn the first real conception of the character of
machine needed by coal men. In fact, the ques¬
tion, “what about the effect of the shot in the
fourth direction ?”— the portion of the coal to¬
ward the center of the room — proved to be the
pivotal point for the new machine.
While studying that question, it did not take
(Continued on page 128.)
122
THE BLACK DIAMOND
[August 14
An Explanation of How Coal Tar Is Recovered.
To the casual inspection of the man not initiated
into the mysteries of coal tar products, the ap¬
paratus used seems wonderfully intricate, and
almost beyond ordinary comprehension. To a
chemist or engineer, the principles embodied in
the different devices are often hidden even from
the trained mind.
To fully understand such apparatus, one must
first get hold of the fundamental ideas which
brought them to the mind of the inventors. There¬
fore, let us try to deduce the theory which pre¬
ceded the appearance of the various stills, con¬
densers, and washers used in this line of work.
As the coke oven drives off the gases from
the coal, at the necessarily high temperatures
used, the various liquid constituents of the coal
are also vaporized, and these vapors of the dif¬
ferent liquids mingle with the heated gases, and
leave the oven with them. Since, to be used
by the medium of pipe conveyors, the eas rnust
be cooled to ordinary temperatures, it is obvious
that the contained vapors would, upon the tem¬
perature being lowered, condense in these pipes,
and ultimately choke them. Accordingly, the
By P. W. Thomas.
The Author Tells How Tar Is Taken
From the Gas; How Ammonia Is Drawn
Off and How Many Primary Products
Are Obtained.
first problem confronting the men who wished
to utilize the gas from coal was that of removing
such of these vapors as would tend to condense
readily in the pipes of the system.
When condensed in a body, such vapors form
at medium temperatures a liquid, which at ordi¬
nary temperatures becomes a fairly solid conglom¬
erate mass, called tar. Tar, in addition to the
liquids of the various coal vapors, contains a
high percentage of free carbon, called amorphous
carbon, which, without assuming a liquid form,
yet changes from a solid matter, if subjected to
heat, to a practically gaseous form, and redeposits
on any cool surface.
The first problem, then, was the condensation
of tar in such a way as to remove it from the
gas without loss of the gas. Research made it
evident that as the gas cooled to the temperature
known as the dew point of the tar, small globules
of tar appeared in the gas, but were not readily
deposited from it. To fully clear the gas of
these globules, three methods were found effi¬
cient ;
I. To baffle the current of gas carrying the
globules by obstructing the current with cool
surfaces. The impact of the globules striking
such surfaces removed them.
II. To cause such impact against the sides of a
cylindrical vessel by centrifugal motion of the
gas current.
III. To wash the gas with a liquid spray, the
impact of the globules against the surfaces of
the sprayed drops causing their assimilation and
removal.
To take three types of tar washers which illus¬
trate these principles definitely I have drawn the
following figures from similar diagrams in Mr.
I'rederick Wagmers’ book on “Coal Gas Resid¬
uals.”
Fig. 1 shows the cross-section plan of the Pe-
louze Adouin tar condenser. The gas enters the
condenser at the inlet "O,” passing up through
the center to come out under the friction bell
“A.” This bell is suspended in a cylindrical
casing which dips into ammoniacal liquor filling
the well “C.” The bell is cast in two pairs of
concentrically enclosing cylinders, each perforated
with holes. The gas entering under the bell,
passes out through these holes, which are so ar¬
ranged that as the gas comes through it strikes
a blank space in the wall opposite, condensing
with the impact. The inner bell has larger holes,
and as the size of the holes decreases, the gas is
“wiredrawn,” which aids materially iyi condensa¬
tion. The tar collects on the bell, and the sur¬
plus falls into the well below, where it is re¬
moved by overflow. The gas passes up into the
chamber aliove, leaving at the outlet marked
“E.” The friction bell is suspended bv a hy¬
draulic lift which operates automatically with
the make of gas, lifting as the make increases,
and so bringing more holes above the surface
of the liquor to take care of the increased volume
of gas.
Of the various types of condensers using the
second principle for the removal of tar, Fig. II
shows the simplest, known as the Cyclone ex¬
tractor. The gas enters at “A” the cylindrical
casing “R,” entering at a tangent. This causes
the current to spiralize, with sufficient soeed to
cause the centrifugal force of the revolving glob¬
ules to throw them against the walls of the cylin¬
der. where thev condense and run down into the
storage tank “E.” The gas, after whirling around
the cylinder, leaves through the central outlet
marked “C.”
Fig. Ill shows the Standard Injector tvpe of
tar condenser. The gas entering at “A,” follows
the direction indicated by the arrows to meet a
stream of hot tar from the iniector. The hot tar
spray meets the gas and falls through the cur¬
rent, carrying the globules of tar from the gas
into the well beneath. certain portion of the
tar is continuallv pumped back through the in¬
jector. the surplus being removed to a storage
tank bv overflow. The gas leaves the condenser
through perforations in the outlet pipe.
The above principles are those upon which all
types of condensers and washers for taking coal
products work, though the variations in form
are many in number, and some are more efficient
iiian the types given. '
Having taken the tar, most manufacturers
have found it advisable to immediately separate
the ammoniacal liquor by settling tanks, the
liquor being stored from overflow, and the tar
removed for treatment. To remove all ammonia¬
cal liquor, the tar is now heated to eighty-five or
ninety-five degrees F., and after being filtered,
passed into the drum of a centrifugal running
at a speed of 2,500 revolutions per minute. This
thoroughly separates all ammoniacal liquor from
the tar, which yields the manufacturer increased
revenue from the sale of ammonia free tar, and
from the sale of the liquor or ammonium sulphate.
Mr. Wagner calculates that after deductiriP labor,
cost of operation, interest, and amortization of
capital involved, a plant separating 2,800 gallons
of tar per day, and so obtaining 2,352 gallons of
ammonia free tar and 448 gallons of ammoniacal
taken either I)efore or i;nmedately after removing
the ammonia from the gas or tar. If taken be¬
fore, by the Feld process, the yield of ammonia
is slightly larger. Many attempts, some success¬
ful, have been made to decompose this gas and
place the nitrogen in combination with hydrogen
to form additional ammonia. The profit at pres¬
ent would not be so great as to remoye the gas
in the formation of cyanide of potassium, how¬
ever. In this respect, two processes are in gen¬
eral use, one the Bueb process, which takes cyano¬
gen in the form of a press cake, and the other
the Feld process, more economical, which takes
cyanogen in the form of a sludge, at the sarne
time liberating hydrogen sulphide gas which is
comljined with the ammoniacal liquor to yield
direct ammonium sulphate. The processes are
both conducted in washers, the Bueb washer using
copperas solution as an absorbent, and the Feld
washer using milk of lime. While the washers
have minor "differences, the washing principle is
used entirely. However, in these more advanced
No. 7]
123
forms of washers, the gas enters at the bottom,
and the washing fluid at the top in a fine spray.
Therefore the liquid in falling, meets the cur¬
rent of gas rising and obtains additional impact,
and additional absorbing power, without the use
of injector pumps.
When cleaned of ammonia and cyanogen, the
tar is ready for fractional distillation, and is
placed in a coke oven or retort. I have in previ¬
ous articles taken up the steps of this work, and
described the products. It does not seem neces¬
sary to further describe the apparatus used in
fractionating the tar by heat, save to explain
that when heated, at certain degrees the vapors
Fig. 3. Standard Injector Type.
of each oil or liquid produced are given off, and
must be condensed again separately by employing
one of the principles set down.
Naphthalene is a solid crystalline substance,
melting at 174 degrees F., boiling at 424 degrees
F., which in quantities is injurious to gas, but
in small amounts increases the lighting power of
gas. The majority of the napthalene present will
be condensed in the tar, and if redistilled, can
be washed from the vapor with several solvents,
using any good type of washer. Anthracene oil,
creosote oil, hot water gas tar, or the waste
from other distillations called napthalene wash¬
ers, may be used to remove the napthalene from
the distillation vapors of the oven. The vertical
washer which sprays the vapor more thoroughly
is generally used.
So, in turn, the mechanical treatment of the tar
repeats this procedure in taking each separate
basic product. The tar is heated to that known
temperature at which the desired product alone,
as nearly as possible, is vaporized from the con¬
glomerate hot tar liquid, and carried off as vapor
to a condenser or washer and there removed.
Once separated, the product may be further puri¬
fied and treated to reach a marketable re¬
sult. Such treatment is chemical rather than
mechanical, and is seldom carried on entirely by
the manufacturer, who rather seems to sell his
product at the earliest marketable stage of its
production.
THE HEA(K I)IA3IOM).
The processes given above all necessitated con¬
stant alternate vaporizing and condensing of the
tar constituents. Walthcr Feld, after applying
new principles in washers in various branches of
the distillation process, conceived the plan of tak¬
ing the oven gases, which contained all the vapors
of the different elements, and successively con¬
densing each vapor by washers. After years of
determination relative to the critical heats of con¬
densation for each product, Feld perfected a
series of eleven washers, of the vertical type,
wherein the entering oven gas is successively
washed clean of the principal vapors separately
contained in it.
It is interesting to know that this process, as
far as mechanical treatment is concerned, aptly
shows the dependence of the by-product busi¬
ness on its own products. Feld has shown that
when a vapor approaches its dew point, it is most
readily absorbed by the liqiiid of its own con¬
densation. Thus, the absorbents used in the
washeries are all coal products. Pitch vapor is
removed at the temperature of its dew point by
being washed with liquid pitch of the same tem¬
perature. Each element in turn is removed in
separate washers through which the liquid of
that element, or the liquid of the nearest possible
similarity, is sprayed. Napthalene, not a liquid
at the required temperature, can be removed with
the oils closest to it in temperature of the dew
point.
Then it can readily be seen that the foregoing
mechanical treatment of coal products does not
need labor of more skill than that already em¬
ployed in our own coking plants. The products
of such treatment are the raw basic elements
which the chemist must take in charge, but these
same raw products have a value which makes the
mechanical treatment alone one of profit.
The chemical treatment of the raw products is
of a more technical nature, and of more interest
to chemists than coal men. However, the coal
men may be sure that if they undertake to pro¬
duce the basic materials, the chemists will be on
hand to treat them or buy them for treatment.
.Already the demand for these products far ex¬
ceeds the apparent supply, and the indications are
that the demand will increase enormously, even
with the close of the war and the resumption of
German trade. As yet, the war has made but
little shortage of supplies — the trouble has prin¬
cipally been a fear of shortage — but even with a
normal import trade, the demand is greater than
the supply.
Lignite as First Aid to the Settler.
By F. L. Clark.
What the presence of lignite coal in such
enormous quantities and over such a wide ter¬
ritory in western North Dakota and eastern
Montana is meaning today and has meant the
last ten years to homesteaders and farmers can
scarcely be realized by anyone who is un¬
familiar with conditions. There are those who
go so far as to say that without this omni¬
present lignite the settlement of these lands
comprising an area greater than the New Eng¬
land states would have been delayed indefi¬
nitely. The great stretches are absolutely bare
of trees with the exception of brush and cot¬
tonwoods along the streams.
In the old cattle days the ranchers built
their houses near the rivers and creeks. There
were so few of them that the timber along the
water courses sufficed for their needs. Fifteen
year ago the homesteaders began coming in.
Within the last ten years tens of thousands of
them have settled in the region. Flomesteads
have been taken up as far as a hundred miles
from a railroad, while a distance of forty and
fifty miles is extremely common. The writer
recently lived on a claim in northwestern
North Dakota forty-eight miles from a rail¬
road. There was no, timber for miles. It cost
a cent a pound to have freight brought from
the railroad. Obviously, at $20 a ton merely
for hauling there are few homesteaders who
could stand the strain of a fuel bill through the
long, severe winters.
Think, then, what it has meant to the settle¬
ment of this region to have veins of lignite coal
within walking or teaming distance of almost
every farm; and this is the case over thousands
of miles of territory. Many settlers have lig¬
nite beds on their own quarter-sections and
obtain with a pickaxe and shovel all the fuel
they need. Those who buy are required to pay
only a little more than the cost of hauling.
This ranges from $2.00 to $4.00 a ton. accord¬
ing to the distance to be covered. There are
springs issuing from many of the lignite veins.
On a ranch near Watford, North Dakota, three
springs bubble out of a bed of lignite within
a few yards of the house, the rancher thus
having a water supply and a fuel supply pro¬
vided by nature at his back door.
The region is rapidly developing and rail¬
roads are bringing the farmers and home¬
steaders constantly in closer touch with the
outside world. There are still, however, many
thousand people west of the Missouri river
in North Dakota and eastern Montana thirty
miles or more from a railroad. They use no
fuel but the* lignite they obtain from local
mines. Furthermore, they like it so well that
after the railroad comes and the towns build
up they go on using it almost exclusively for
domestic purposes. Electric light plants ami
small manufacturing concerns, as they are es¬
tablished. make use of lignite to the exclusion
of shipped-in coal. The government uses it
in its power plant for the Williston irrigation
I)roject in northwestern North Dakota. It is
also the fuel consumed exclusively in all pub¬
lic buildings in North Dakota.
And yet this same resource was considered
worthless twenty-five years ago. .An old Da¬
kota pioneer tells the following story of the
discovery of its value as a fuel:
“In territorial days there lived on the banks
of the Missouri a.bove Bismarck one John
Warren. His shack was located near a large
vein of lignite. Alexander McKenzie, one of
North Dakota’s most famous citizens, had oc¬
casion to stop with Warren one cold winter’s
night and discovered that the shack was com¬
fortably warm with lignite which Warren had
dug out of the nearby vein.
“Upon his return to Bismarck, Mr. McKen¬
zie told a number of citizens of that place that
Warren was burning lignite, and advanced the
opinion that there was no better fuel to be
had in the northwest. The Bismarck people
received the statement with skepticism, for
Warren’s reputation for veracity was not of
the best.
“Mr. AIcKenzie, to make good his claim, pur¬
chased a suitable stove and set it up in his
office in Bismarck. He then secured a quan¬
tity of lignite coal and invited a score of
friends to call a certain cold evening. Within
a few minutes after the party had assembled
the stove got so red hot, and the room also,
that everyone declared themselves perfectly
satisfied that North Dakota lignite would burn
and give forth heat — in fact, more than sat¬
isfied.
“Mr. McKenzie, as he traveled about the
state later, gave wide publicity to the value of
lignite.”
Canadian Toluol and Benzol.
fConsul Henry P. Starrett, Owen Sound, Ontario. 1
Recent press notices state that the conditions
brought about by the war have served to create
an industry new to Canada — the manufacture of
toluol and benzol as by-products of the coke
ovens.
Toluol is a hydrocarbon used in the manufac¬
ture of dyes and also in production of high ex¬
plosives. Benzol is also a hydrocarbon, the chief
raw material of the artificial-dyestuff industry
and a fuel that can be used in internal-combus¬
tion engines as a substitute for gasoline. Half
of the benzol output of German coke ovens was
used for motors in 1913, and at present it has
almost completely replaced gasoline for automo¬
biles in that country.
At least one large Canadian steel company has
received a contract from the Canadian govern¬
ment for its output of toluol, and the same com¬
pany expects important contracts in the future
from the British government.
[The separation of the two hydrocarbons from
coke-oven gas involves the construction of “ben¬
zol scrubbers,” and the separation of the two
compounds from each other and in a relatively
pure state requires the erection of suitable stills.
The cost of a benzol plant for a battery of coke
ovens handling daily 2,000 short tons of coal is
about $300,000. Such a plant produces daily about
4,000 gallons of crude benzol. The daily output
of pure benzol is about 2,700 gallons, of toluol
040 gallons, and of other useful hydrocarbons,
solvent, naphtha, etc., 080 gallons.]
124
[August 14
_ THE BLACK DIAMOND. _
Possible Substitutes for Anthracite Coal.
Anthracite coal is an ideal domestic fuel.
It is clean, smokeless, burns slowly, hence
holds a fire for a long time; is hard, strong
and does not break easily and is of small
volume. After the exhaustion of wood fuel,
it had for many years little or no competition
in the markets of its natural territory.
Conditions in recent years have, however,
caused a considerable increase in its cost, and
this has not only given an opportunity to the
substitute for anthracite, but has shown that
some other form of fuel will find a continually
increasing market in its replacement. As a
substitute of importance, semi-l)ituminous coal
has easily first place. Next in order comes
coke, a comparatively new fuel in the domestic
trade.
Coke possesses some of the advantages en¬
joyed bv anthracite: in other respects it is not
equal to hard coal. In heating power and
freedom from smoke it is equal. Iri price it
has an advantage as it sells for less; in fact, it
must sell for less to obtain a market. Each
fuel being smokeless, this feature cancels out
of the problem, leaving price as the only su¬
perior feature of coke to offset its disadvan¬
tages. but price is an universal cure for most
ali ills.
Character of Coke.
The handicaps home by coke are of two
kinds — one of a physical character, the other
of a commercial nature. Regarding the first,
some one in attempting to illustrate the pe¬
culiar physical nature of coke has said that
it possesses in a marked degree, the physical
characteristics of an egg, an emery wheel and a
sponge. Like an egg because it is fragile,
delicate and easily broken. Idke an emery
wheel because the walls of its cells are sharp
and hard, cutting and rapidly wearing shovels,
conveyors or any handling appliances. Like
a sponge, because it will absorb a very large
amount of water. The reason that coke ab¬
sorbs so much water, is the same reason that
it is of such large volume, and this is because
of the large cells of its structure like the
comb of the honey bee.
Anthracite is just the opposite in these re¬
spects, it is very hard and is the strongest of
all coal fuel; it does not cut or scratch like
coke; it is very dense so it does not absorb
water to any appreciable extent, and being
dense it does not have the open cell structure.
It is therefore of small volume, or in other
words, it is very heavy, occupying small space.
The large volume of coke is a feature of
difficulty to the dealer, as it requires more
space for storage, and less quantity can be
transported on w'agons, or to haul the same
qauntity, the loads must be made larger. To
accomplish this requires the use of side boards
or other special means to allow of the load
being built up higher. This makes it more
difficult for dealers to stock up during spring
or summer as their storage space usually does
not allow of the stocking of large amounts
as with anthracite.
The Firing Problem.
Another of the problems with coke is its
firing. People are disposed to follow practice
that gives good results with anthracite, and
unfavorable results follow. Coke, however,
may be burned with equally good results if
fired properly. The principal feature in good
firing is the maintenance of a thick fuel bed,
if this is done excellent results are had.
The reasons why a thicker fuel bed is re¬
quired with coke is that it burns more freely
than does anthracite and it does not produce
as compact a fuel bed, the spaces between
the pieces of a corresponding size being larger
and more irregular than with the coal. The
demand for coke is growing as consumers
learn to use it, and as they realize a saving in
their fuel bills. But the manufacture and mar¬
keting of coke for domestic use are attendant
with much more difficulty than with coal.
Domestic coke is always a by-product; if it
were not, it could not be marketed in com¬
petition with coal. Formerly, it was prin¬
cipally the residue of the illuminating gas re¬
tort, and to some extent a residue of oil re¬
fining. In each case, it found a market in the
vicinity of its production, because it could not
bear the addition of transportation charges.
More recently, however, coke from coke ovens of
the by-product type, has entered the market.
’Consulting Engineer, Chicago, III.
By A. Bement.*
A Discussion of Coke as a Fuel for the
Replacement of Anthracite — What Coke
Makers Have Done to Manufacture Fuel.
This is the fuel with which the public and
dealers have had most to do and the one to
which most consideration must be given.
Never as yet have by-product ovens been es¬
tablished for the purpose of supplying do¬
mestic coke, the enterprise would not be
profitable because the market could not pay
the price necessary to insure the oven a profit.
The by-product oyen is a complicated com¬
mercial proposition, much different from coke
manufacture with the old beehive oven, with
the latter, coke was the only product and only
one grade of coke was shipped, and this being
a high grade article suited to the use of blast
furnaces and foundry cupolas, it could bear
any necessary transportation cost, because
there was no substitute for it, therefore, dis¬
tance was no bar to market. The oven be¬
ing a very simple and cheap affair located at
the mines where real estate was cheap, fixed
charges and maintenance were very low. The
by-products were wasted and the small coke
thrown away as was once the practice with fine
coal in certain mining localities.
The by-product oven, however, is a very
different affair than its old predecessor as it
produces, besides a high grade furnace and
foundry coke which is the main product and
is the principal excuse for the existence of the
plant, other by-products in the form of do¬
mestic coke, illuminating gas, tar, and chemical
products in the form of sulphite of ammonia.
For the plant to be successful a market must
be had for all of the products, and this is a
problem of no small niagnitude.
Gas and domestic coke are both products,
which will bear but little transportation costs.
The only markets available for the gas are
the gas supply of a city, or for industrial uses,
such as a steel works, if the ovens are located
at such a plant. The city gas supply is, how¬
ever, the best market as it is a service that
can afford to pay the highest price. This
means that the ovens be located in, or at, a
large city.
The domestic coke demanding a. large mar¬
ket within a short radius also requires that
the ovens be located at a large city. It, of
course, is desirable from the standpoint of the
furnace coke that it also find a market near
by. While this is not necessarily essential
to the successful marketing of the high grade
coke, as it is with the gas and the domestic
coke, yet it is a desirable feature. It is ap¬
parent from the foregoing that a large city
is the best place for a plant of by-product
ovens; also that if blast furnaces and foundries
are ; among the industries of such a city, they
also not only contribute to the success of the
enterprise, but make possible a low priced
domestic coke.
Source of Raw Material.
Coke has always been made from some spe¬
cial seams of coal, or from some particular lo¬
cality which produces what is known as cok¬
ing coal, either from a straight coal or from
a mixture of coals. This is not because such
is the only coal that will produce coke, but be¬
cause the requirements for structure, strength,
sulphur and ash content, can be secured with
it. Any coal will make coke, but only certain
coal will make a furnace coke and this prod¬
uct is the controlling factor.
At the present state of the art it will not
pay to coke the grades of coal which have
been known as non-coking. They will ijot
make a furnace coke, and it would not pay
to market the entire product as domestic coke.
There has been much activity in the coking
field since the advent of the by-product oven,
and at the present time there are rumors of
“new processes,” which is to coke various low
grades of coal, changing poor coal into good
coke, which give more promise of financial
losses than of good coke.
In the line of coke proper there have been
some experimental work in this country and
Europe, having for its object the removal of
certain objectionable features of bituminous
coal, the principal one being smoke. The
theory is that if the smoke making consti¬
tuents could be taken out leaving, not a coke,
but an “improved form of coal,” it would be
a very desirable thing. These processes have
only resulted in the production of a slightly
coked coal, and while destroying the coal
structure, have only attained a semi-coke of
a very soft and mushy structure.
Coke has come to stay as a domestic fuel,
its use is attendant with economy, and it^
marketing will be extended as dealers become
equipped with the special problems involved.
Taking Coal from River.
Removal of coal deposits from the bed of the
Susquehanna river for industrial use is to be
undertaken by the Citizens’ Electric Illuminating
Company, beginning this week, on a scale that
will definitely determine the feasibility of such
an enterprise, says the Pittston (Pa.) Gazette.
Many persons have noticed and inquired con¬
cerning the odd-looking nautical structure that
wa.s recently erected just above the Ferry bridge.
This is the boat, or dredge, which is to figure
in the new industry. The Citizens’ company has
contracted with H. Pfingsten to operate the so-
called dredge, and Mr. Pfingsten has built the
equipment, consisting of the dredge, a 32x14 foot
flat boat and two coal boats.
The plan is to raise the coal from the river
bed by means of a six inch centrifugal pump,
driven by a vertical engine installed in the boat.
The pump has sufficient suction power to raise
the coal deposits into the boat, where these can
be screened through into the coal boats, which
are to be rigged alongside the dredge. The coal
\vill be removed to a point on the east side of the
river near the company’s plant, from which it
will be hoisted by a conveyor line to an elevation
and run through a crusher, reducing it to rice
size or much smaller.
Mr. Pfingsten had previously engaged in the
dredging business, but found little or no market
for the product. Officials of the light company
said that this was because the deposits are prac¬
tically screenings, not of the cleanest, and are
undesirable for commercial use ; in fact, it was
stated that probably the only industry in Pittston
that could use the coal from the river was the
Citizens’ plant, with a special fire-box under its
boilers that would consume the finest siftings
of anthracite. The company plans to operate the
dredge during the months when the river is suffi¬
ciently low, and in the winter season to fall back
on the culm bank of the old Clear Spring colliery,
which it purchased some years ago.
Dredging coal from the Susquehanna is done
extensively in Columbia county, south of the
anthracite fields of the Susquehanna valley, and
commercial sizes marketed. Further south, at
Harrisburg, screenings are dredged. The Harris¬
burg Light Company in 1914 pumped out 29,000
tons of screenings. There is a big bed of coal
deposits under the river on the east above Ferry
bridge. This was left there by the coal-thickened
Lackawanna tributary.
The receipts and shipments of coal to and from
Cincinnati, as reported to the Chamber of Com¬
merce for July, 1915, and July, 1914, show a com¬
parison as follows: July, 1915 — Receipts — Bitu¬
minous coal, rail 93,105 tons, river 101,858 tons,
total 1,094,903 tons ; anthracite, 790 tons ; coke,
7,203 tons. Shipments — Bituminous, rail 1,030,391
tons, river 9,722 tons, total 1,040,113 tons; an¬
thracite, 214 tons; coke, 2,915 tons. July, 1914 —
Receipts — Bituminous, rail 332,407 tons, river
140,005 tons, total 479,072 tons; anthracite, 590
tons ; coke, 4,225 tons. Shipments — Bituminous,
rail 122,391 tons, river 35,213 tons, total 157,004
tons; anthracite, 578 tons; coke, 1,587 tons.
Orders have been received by Thomas O’Neill,
agent in Superior of the Sunday Creek Coal
Company, to dispose of the stock remaining on
the dock as soon as possible and close business
for the present. This is in line with the orders
sent out to the company’s Milwaukee dock and is
a result of the rate fight in which the company
is involved in Ohio. At present there are only
about 30,000 tons of soft coal on the dock. The
property was previously owned by the St. Paul
& Western Fuel Company.
No. 7]
THE BEACK DIAMOND
125
Ohio Rate Hearing Becomes Important
Columbus, Ohio, August 11. — (Special Corre¬
spondence.) — Hearing on Ohio coal rates in the
action brought by miners’ union officials before
the State Utilities Commission took a recess on
the 6th inst. until the 17th, after being in session
two days. Illness of Trainmaster Sisson, of the
Hocking Valley, one of the chief witnesses sum¬
moned by the plaintiffs, was the immediate cause
of adjournment. However, the proceedings gave
evidence of taking on such large importance that
both sides desired to make better preparations.
Among thp early witnesses was Professor
Frank A. Ray, of the mining engineering depart¬
ment of the Ohio State University. He stated
that only six percent of the available coal sup¬
ply df the state had been mined. Production had
steadily increased from 19,500,000 tons in 1900 to
.'56,000,000 in 1913, but the amount produced last
year was less than 15,000,000 tons.
H. Q. Wasson, general freight agent of the
Hocking Valley Railway, in explanation of the
low rates on West Virginia coal for Toledo re¬
ceived by the road at Armitage, Ohio, acknowl¬
edged that 31.5 per ton was the tariff on tonnage
received from the Norfolk & Western and 55.3
from the Kanawha & Michigan Railway.
H. B. Dunham, a former general freight agent
of the Hocking, said that the road was forced to
accept such rates in order to get tonnage that was
being hauled by the Cincinnati, Hamilton & Day-
ton Railroad on delivery by the Chesapeake &
Ohio. On business of this character, it was claimed
the Hocking Valley was at no expense in as¬
sembling the shipments, and supplies none of the
equipment in handling the same, except the en¬
gine and crew to make the haul to Toledo.
M. S. Connors, general manager of the Hock¬
ing Valley, testified that he reported to M. J.
Caples, vice-president of both the Hocking and
the Chesapeake & Ohio, and that it was his un¬
derstanding that the latter owned the greater
part of the stock of the Hocking Valley. The
object of the prosecution in drawing out this in¬
formation was to show that the Hocking was
controlled by a southern railway.
The miners won a point at the beginning of the
hearing when the commission ruled that the rail¬
roads cannot offer a defense that mining condi¬
tions and prices of production, as between Ohio
and outside coal fields, are responsible for pres¬
ent inactivity in the Ohio mining centers, rather
than exorbitant freight rates. Effort of the
Hocking Valley Railroad to be dismissed from
the list of defendants on the technical ground
that it had just recently lowered rates from
Nelsonville to Columbus and northbound points
as far as Toledo, was overruled by the commis¬
sion for the time being at least.
It is conceded that the present action is going
to be a battle royal between the coal interests
and the railroads. It has developed into much
greater importance than was anticipated when
the case was filed. The hearing rooms of the
commission were found to be too small to ac¬
commodate the attorneys, witnesses and inter¬
ested spectators, and a room at the county court
house was secured for the purpose. While on
the face of it, the case is one brought by the
miners, the operators of the state are back of
the movement. Their announced object is to
have the differential against West Virginia coal
increased from twenty-five cents to fifty cents
per ton. The railroads are willing to make a
small concession, but want it to come through
the authority of the Interstate Commerce Com¬
mission, being opposed to any recognition of the
State Utilities Commission in fixing rates. Thir¬
ty-nine railroads are named as defendants.
“Coming now to the penalties for infractions,
it may be observed that aggrieved parties can
either proceed for recovery in the commercial
courts or apply for a conviction under the act.
In either case the Board of Trade is the final
tribunal, and amendments have now been in¬
serted whereby a contract is not vitiated by a
contravention of the act, except as regards the
price, and penalties will not be inflicted where
the contravention has been innocently com¬
mitted.”
Continuing on certain points in the act that
are considered unfair to the coal trade. The Col¬
liery Guardian says :
“Such points as these might be labored inim¬
itably, beyond the boundaries of our space. These
defects crowd upon us, because the act is funda¬
mentally unsound. The pregnant fact is that
the output of coal is insufficient for the needs of
the country; it is no assistance to the consumer
to tell him that he must no pay more than a
certajn price for his coal, if he is unable to
obtain it. The act merely complicates his diffi¬
culties, because not only does it destroy the
incentive to increased production, but it does not
give the buyer any means of overcoming the
geographical and other disadvantages under
which he may labor, by the offer of correspond¬
ingly better terms to the owner of the coal. We
are still convinced that the only fair and proper
way to achieve the objects aimed at by the act
was for the Government to take over the distri¬
bution of all the coal raised, or, like the German
Government, to assist the coal owners to organ¬
ize some workable scheme on the lines of the
Westphalian Kohlenkontor.
“Any excessive profits might then have been
dealt with on the lines of the amendment intro¬
duced by Sir Joseph Walton, by a system of
taxation, to which everybody would contribute.
As it is, the coal mines have been singled out
for taxation, not because they are best able
to bear it, but because their coal is a veritable
necessity. At the same time there is no coal
owner sufficiently optimistic to believe that this
enforced sacrifice is going to benefit the nation
in any way.”
England Has Serious Coal Problems
Herertofore, England’s coal owners have had
to contend with a miner’s strike ; a restriction
of exports ; and a scarcity of miners due to en¬
listment. Now they have to face the need to
sell coal at prices fixed under government regula¬
tion. Recently the price of coal (limitation) bill
was passed by Parliament.
The bill is considered by English mine opera¬
tors and the trade press of England as being
needlessly drastic. The Colliery Guardian says
that it “is very nearly the last straw, and cer¬
tainly the man who takes upon himself the re¬
sponsibility of winning coal orders under the
conditions now imposed must be very bold or
foolhardy.” The coal operators have promised
the Government to do their utmost to facilitate
the enforcement of the law. The act is' outlined
in detail by the Colliery Guardian of London, as
follows :
“The act, which is now in operation, is to have
effect during the continuance of the war and for
a period of six months thereafter. It applies to
all sales of inland coal, with the exception of
sales in pursuance of a contract made before the
commencement of the act; but it is provided that
sales of ‘excepted’ coal contracted for between
April 1, 1915, and the date of the act, and de¬
livered after October 29, 1915, may be brought
under the act on the application of the buyer,
the Board of Trade having power to extend this
period ; ‘excepted’ coal is defined as ‘coal supplied
for domestic or household purpose to any local¬
ity, or to any undertakers supplying gas, water,
or electricity in any locality in pursuance of au¬
thority given by an act of Parliament, or by an
order confirmed by, or having the effect of an act.
“The act applies not only to coal sold, but also
to coal offered for sale ; and it is important to
emphasize the point that ‘sold,’ as regards the
basis period, July 1, 1913, to July 1, 1914, means
not ‘delivered,’ but ‘contracted for’ ; in other
words, coal is deemed to be sold when a con¬
tract is made.
“Before dealing with the effects of the act,
we may examine some of its provisions. It is
difficult to offer more than a conjecture as to
the true construction of some of these, and were
this an ordinary act it would give rise to an
unending flood of litigation. Against this there
are two safeguards ; in the first place, all ques¬
tions are left to the arbitrament of the Board
of Trade, even as regards the facts incident
to prosecutions under the act ; and, secondly,
we may hope that parties injuriously affected by
the act will resolve to compound their grievances.
if only to assist the Government in carrying out
their onerous duties. Those who have a genuine
conviction that this contempt for the ‘sanctity of
contracts’ strikes at the foundations of commer¬
cial morality, must keep it to themselves, pre¬
serving their energies for the time when these
honorable conventions have to be restored to
their proper eminence.
“Of the questions that may arise, one is as to
who is the ‘owner of the coal at the pit’s mouth.’
We think it is clear, however, that the section
covers the case of a factor or merchant who is
the owner of the coal at the pit’s mouth, and in
the report stage Mr. Runciman added the words
‘directly or indirectly,’ which gives the Board of
Trade a wide discretion. Sir Edwin Cornwall’s
attempt definitely to exclude the factor was de¬
feated.
“The expressions ‘same description’ and ‘sim¬
ilar conditions,’ which occur in section 1, may
also give rise to trouble, because no two contracts
are alike, and there may be sales for which no
comparative basis exists; this is another task as¬
sumed by the Board of Trade in the last resort.
One point, however, of considerable importance
to coal owners who, as in Lancashire, engage in
the retail trade, was elucidated by Sir Clifford
Cory; it was felt that if coal owners were bound
down at their depots to a bare 4s increase, they
would be prejudicially situated in competition
with other merchants ; in such cases, however,
the owner will be able to add to the standard the
difference in cost of transport, cartage, etc., so
as to place him on the same footing as the mer¬
chants.
“The act provides that the standard amount
of 4s may be increased where representations are
made by certain classes of mines. The Irish
mines have been specifically eliminated from the
act, and some sort of promise was held out in
the case of the Kent collieries ; it appears, how¬
ever, that such applications can only be made by
the owners of a class of mines in any district and
not by individual owners. We have no doubt
that the Board of Trade will be inundated with
such applications.
“Mr. Runciman showed in the course of the
debate that his department does not share the
ridiculous estimates as to the rise in cost cher¬
ished by some of the representatives of the
‘back-streets.’ The figure arrived at by the Board
of Trade, whilst it may be a fair average, does
not, even with the additional shilling, cover the
rise in cost in many cases, and such collieries
can make a fair claim for consideration.
New York Golf Tournament.
The New York Coal Trade Golf Association
had an ideal day on Tuesday of this week for
their second tournament of the present season.
This tournament was held on the links of the
Greenwich Country Club, at Greenwich, Conn.,
of which Colonel R. B. Baker, president of
the New York Coal Trade Golf Association, is a
very prominent member.
Due to the vacation season, there was not a
full attendance of the members of the associa¬
tion, but, notwithstanding, there was a very rep¬
resentative party of coal men and their guests.
There were two rounds of play, in the fore¬
noon and afternoon, and at the conclusion of the
day about two dozen sat down to dinner at an
immense round table on the veranda of the club
house and listened to some good singing and
iinjiromptu speeches. Colonel Baker presided.
The members of the association taking part in
the tournament were Colonel R. B. Baker, W. H.
Temple, W. D. Eyre, A. E. Metlach, G. J. Geer,
G. M. Dexter, J. E. Parsons, M. Naun, F. W.
Saward, E. R. Brevoort, Dan. Anthony, DeL.
Hendrickson, R. M. Bryan, E. Coe Kerr, G. J.
Geer and J. E. Davis. Among the guests of
the members were Andrew Baxter, J. H. Temple,
Jr., J. R. English, A. J. Billin, T. B. Davis, R. A.
Floyd-Jones, Frank Speakerman, Irving Brown,
Chris. Bambach, R. C. Gillespie, A. McDougall,
R. J. Buchholz and J. S. W. Holton.
The prize winners were as follows :
First prize, a silver cup presented by Colonel
Baker, was won by J. E. Parsons, for lowest net
in thirty-six holes.
G. J. Geer, E. Coe Kerr and J. E. Davis tied
for the second prize, a cup presented by Colonel
Baker.
DeL. Hendrickers won the kickers’ handicaji
for thirty-six holes. The prize was a box of
golf balls.
T. B. Davis and A. J. Billin tied for the silver
cup for the visitors’ handicap.
Qiris. Bambach won a box of golf balls as
one of the prizes for visitors.
It is planned to have a meeting real soon on
some convenient course so that the ties can be
played off.
Tbe next one day tournament is set for Sep¬
tember 14.
126
THE BLACK DIAMOND
A Statement About the
A. iM. Hull, secretary-treasurer of the New
Coal Association, has issued the following
statement :
“The general aim and purpose of the Na¬
tional Coal Association as adopted at the an¬
nual meeting is as follows;
‘ "'J'he object of the National Coal Associa¬
tion shall be to advance the general welfare
of the coal industry, and in furtherance of
this ai’m the National Coal Association shall
promote the educational development and so¬
cial relations of the trade memliers and shall
stand for absolute integrity in business matters
both between members of the coal trade and
with the consuming public.’
“Primarily it was agreed to retain the so¬
cial and fraternal features of the Order Ko-
koal, but to make it a purposeful trade organ¬
ization by adding educational features.
"There is absolutely no question as to the
l)road field and wonderful opportunities for
helping in a practical way all branches of the
coal industry in all the various localities. The
important thing is where to start first. Evolu¬
tion will develop other departments rapidly
as we go along.
“Personally, my idea would be to make the
National Coal Association a general Clearing
House, for all the dififerent existing coal as¬
sociations. In other words, to keep closely in
touch with all of the secretaries ajid forward
to the others any systems or plans which
others are finding successful. This feature
alone could be made to have a wide influence,
and indirectly at least prove of real benefit to
a large percentage of the coal trade as to
strengthen the present associations in a marked
degree.
“Next we should compile some definite and
convincing data on the cost of handling vari¬
ous grades of coal in different localities in a
manner that ‘he who runs may read.’ This
will help to educate the less informed mem¬
bers of the trade to the necessity of getting
prices that will insure them a profit.
“Committees should also be appointed to
draft some uniform systems for keeping ac¬
counts and figuring costs for all branches of
the industry, similar to the campaign carried
on by the Interstate Commerce Commission
to standardize railroad accounting. This fea¬
ture is in line with the policy of the Fed¬
eral Trade Commission and we can work in
close harmony and get much assistance from
them.
“A Publicity Department could promptly
answer in a dignified conservative manner,
any unjust criticism that may appear against
the coal trade in the daily newspapers of any
city or town. Assistance can also be given
by furnishing articles to the coal men in
towns where they are threatened with ‘Muni¬
cipal coal yards,’ ‘Co-operative Competition’ or a
‘Cut Price War.’
“In perfecting the general organization
throughout the country, it is desirable and
exceptionally important to have local Coal
Guilds formed in every city, county or dis¬
trict to maintain the social and fraternal fea¬
tures and also secure the greatest possible
benefit from the educational development of
the campaign to be carried on by the National
Coal Association.
“To facilitate this work the N. C. A. should
prepare interesting programs for them, sug¬
gest topics for discussion, send papers to be
read, and when possible arrange for out-of-
town speakers or motion picture lectures on
the producing and preparation of coal. This
latter can also be held at times before Cham¬
ber of Commerce, business Men’s Associa¬
tions or at public .gatherings to educate the
consuming public.
“The field is practically unlimited and there
are many other features that will present them¬
selves from time to time, whereby the Na¬
tional Coal Association can take up work
hitherto not attempted.
“Briefly, it will be the aim to co-operate
and supplement the work of all the present as¬
sociations without in any manner encroaching
upon or conflicting with the problems of the
business end, while the National Coal Asso¬
ciation will promote the social, fraternal and
educational features.
“In the re-organization of the Order Kokoal
into the National Coal -Association all horse¬
play and useless frivolity will be absolutely
prohibited from the initiatory ceremonies and
New Coal Association.
the ritual will be condensed into a concise,
dignified appeal for absolute integrity in all
!)usiness transactions. At all dinners, banquets
and meetings it is prescribed that educational
features must predominate and it is intended to
carry out the school or Guild idea in bringing
out in an interesting, pleasing and attractive,
manner facts which will make everyone con¬
cerned better coalmen' and better business men,
and thus enable them to be better enabled to
meet present day competition and consequently
make better profits.
“The days of the cave man are over where
might makes right and the survival of the
fittest in the future will be the men who give
the most intensive study to the real problems
of their business and as a result become ex¬
perts in specialized merchandizing.
“The National Coal Association has made a
splendid start along this line, and with the
combined thought of you and other leaders
in the trade, we should be able to safely launch
it on a prosperous and most successful career.
“For this reason, I am especially anxious
to receive your views, opinions and criticism
of the suggestions offered so that we can de¬
cide upon the very best working plan to bring
the most good to the coal industry.’’
Attack Compensation Act.
Several of the features of the workmen’s
compensation laws passed at the last session
of the I’ennsylvania legislature, which amends
the bituminous coal miners’ act of I'Jll, are
unsatisfactory to many members of the Cen¬
tral Pennsylvania Bituminous Coal Operators’
Association.
The association will hold an important meet
at Clearfield sometime in August, at which
meeting the question of changes in the law
made by the last legislature and the Compen¬
sation act, will form the basis of most of the
discussion.
Last week in Clearfield, a preliminary meet¬
ing of the operators was held. Those present
were Rembrandt Peale of New York; Horace
A. Tompkins of Ebensburg; E. C. Brown of
Patton; Harry B. Scott, Philadelphia; B. M.
Clark of Punxsutawney ; Robert Somerville of
Winburn, and others.
One of the operators present at the meet¬
ing explained the changes of the law, giving
as his opinion that they were not only neces¬
sary, but to the best interests of all concerned,
as follows;
“Reading them alone the amendments to
the act of 1911, providing for the proper con¬
duct of bituminous coal mines appear to be
a step backward in regards to safety for the
miners,’’ he said. “As a matter of fact, the
amendments were necessary so there would
not be any conflict with the even more im¬
portant workmen’s compensation acts.
“Under the act of 1911, operators were forced
to employ as mine foreman and fire bosses
only men who had held certificates of com¬
petency. Under the act as amended the oper¬
ators may employ anyone they please for those
jobs irrespective of whether or not they hold
such certificates.
“Now in the face of it that appears as if a
restriction which made for safety had been re¬
moved. .\s a matter of fact no such thing is
contemplated. The mining law was changed
because the operators are held liable under
the workmen’s compensation act, and there
was a big question whether the act could be
enforced if the operators did not have a free
and unrestricted choice as to the men they
could hire.
“There is no one more anxious for safety
than the operator. Every accident, aside from
personal feelings, brings with it damage claims,
suits ami, to be more mercenary, shutting down
of the mine with a consequent loss of income
and a certain I)ill for repairs. An operator
is not going to take any chances with the
men who are supposed to keep the mine out
of such troubles. They will employ com¬
petent men, rest assured of that. What they
might save on a ‘cut-rate’ man would be too
small for the majority to consider.
“So far as I am concerned, and I think I
voice the opinion of many other operators in
this section, it is a good thing for the operators
to have their choice of men as foreman irre-
[ August 14
-spective of whether or not they have a cer¬
tificate.
“I know miners of 40 and 50 years’ expe¬
rience, who know bituminous mines and min¬
ing from A to Z, who would make invaluable
foremen, yet who couldn’t for the life of them
pass the examinations for a certificate. Un¬
der the old law we could not employ them,
despite our certain knowledge that they were
better men than some bright young whipper-
snapper who had studied up the theory of
mining and who could pass a written test with
flying colors. I don’t mean to say that there
are many theoretical mine foremen. But I
just ^ want to point out where sometimes a
man’s experience is just as good as and bet¬
ter than book knowledge.
‘‘There are other minor changes in the law
of 1911, but it is the one making the -oper¬
ator the actual head of his mine, which in
my opinion will create the most discussion,
especially among the miners, after its pro¬
visions are more thoroughly understood.
Another section which may create a good
deal of trouble where the labor union element
is strong is that tacked on to section one of
article four, which amendment reads: ‘The
right to hire and discharge employes, the man¬
agement of the mine and the direction of the
working forces are vested exclusively in the
operator; and no person or persons, associa¬
tion or association, organization or organiza¬
tions, corporation or corporations, shall inter¬
fere with, abridge or attempt to abridge, in
any manner whatsoever, such right.’
“Now that seems to me to be aimed at labor
unions. Of course, there is a provision which
sets forth that the section shall not invalidate
any existing contract, but what about when
the contracts with labor unions expire?
“Suppose a mine has a contract which says
that none but union labor shall be employed.
That holds good now. When it expires if the
operator sees fit he may refuse to renew it.
If the union tries to force him to through a
strike they run up against that section. It’s
all in the future, of course, but there may be
trouble from it.
“The intent of the legislature as I view it,
was to give absolute control of the mine to
the operator, including the right to hire who¬
ever he wanted, under the theory that, as he
was personally responsible under the compen¬
sation acts, he had the right to choose his
own men irrespective of any affiliation with
any labor union.”
Oklahoma Coal Yield.
Oklahoma produced 3,988,613 short tons of
coal in 1914, valued at $8,204,015. This was a
decrease of 4.25 per cent in quantity and 3.97
per cent in value from the production of 1913,
and was due to the displacement of coal by
petroleum and gas as a fuel, following the re¬
markable increase in the oil production of Okla¬
homa and Texas, which was not fully offset by
the opportunities furnished by the Colorado
strike.
Oklahoma continues to show a high percentage
of coal shot off the solid, a dangerous practice
encouraged by the laws of the state, which com¬
pel payment of wages on a basis of mine-run
coal. The record for 1914, however, may be
considered an improvement over that of 1913,
the quantity of “powder-mined” coal decreasing
from 3,371,218 tons in 1913 to 2,820,529 tons in
1914; the production of machine-mined coal in¬
creased from 670,629 tons, or 16.1 per cent of
the total in 1913 to 1,053,526 tons, or 26.41 per
cent of the total in 1914.
The number of days the men were able to
work in 1914 showed a marked improvement
over the two preceding years. The average
time made by the 8,078 men employed was 205
days, as compared with 9,044 men for 197 days
in 1913, and 8,785 men for 174 days in 1912.
The average total production per man in 1914
was 494 tons, against 461 tons in 1913, and the
average daily production by each employe was
increased from 2.34 tons in 1913 to 2.41 tons in
1914. Less time was lost in 1914 by reason of
strikes than in 1913, a total of 1,286 men in 1914
having been affected for an average of only
thirty-one days.
According to the Bureau of Mines, there were
thirty-one fatal accidents in the coal mines of
Oklahoma in 1914 as compared with twenty-three
in 1913.
No. 7]
127
_ _ THE BLACK DIAMOND.
Small Activities in Many Coal Centers.
Twin Cities Notes.
James Rend of W. P. Rend & Co. has been in
the northwest for a . week looking after tlie
h'ranklin county interests of that company.
J. D. Ekstrum, president of the hdour City Intel
& Transfer Company, Minneapolis, with mem¬
bers of his family, is taking a vacation trip down
the great lakes.
Charles Ebbert of the White Oak Coal_ Mining
Company, Chicago, was in Minneapolis this week.
He regards the outlook for smokeless coal with
optimism and anticipates the export demand will
keep the market steady to firm throughout the
winter, no matter what climatic conditions may
come.
St. Louis Notes and Personals.
The contract for furnishing coal to the Univer¬
sity of Missouri, at Columbia, Mo., was awarded
the St. Louis Coal Company.
The coal trade was very much grieved to learn
of the death of Mrs. H. Trier last week, whose
husband is connected with D. E. McMillan &
Bros, of this city.
C, V. Reck, vice-president of the St. Louis Coal
Company, is now in the east on some of his
anthracite business and will spend a few days in
Chicago the latter part of this week.
Detroit Local News.
Employes of the General Coal & Coke Com-
panv, operated by the General Ice Company, De-
troi't, all shared in the eighth annual distribu¬
tion of profits, made by the latter company.
.A.bout $11,000 was distributed among some 600
persons. The plan was originated by David A.
Brown, president.
By winning four of six l)aseball games played
in a series of seven, the team representing retail
dealers of the Detroit Coal Exchange gains pos¬
session for a year of the fourteen-inch silver cup,
presented as a trophy by James A. Ballard, sales
manager of the Semet-Solvay Company. 1 he
wholesalers’ team snatched two victories and is
now making plans to acquire the trophy next
season.
H. B. Parker began deliveries, Monday, from
a new retail yard in Detroit. He is said to have
orders amounting to 2,000 tons booked. The
yard, on the northwest corner of Harper avenue
and the Grand Trunk Railroad, has 540 feet of
frontage on the railroad. Mr. Parker will handle
the "Dixie Gem” stock of the Southern Coal &
Coke Company, Knoxville, Tenn. He recently
sold out his interest in the firm of iParker Bros.
Company, Ltd., his action marking the with¬
drawal from that company of the last member
of the Parker family, which established it.
Pittsburgh News Briefs.
Five towboats of the Monongahela River
Consolidated Coal & Coke Company fleet, with
empties for this port, were compelled to tie up
for two days below Dam No. 16, under con¬
struction near Sistersville, W. Va. At that
point the water was rushing so swiftly through
the 340-foot way between the cofferdam and
the West Virginia shore that the towboats
with their barges were unable to stem the
tide. The fleet consists of the F. M. Wallace,
John A. Wood, Charles Brown, Harry Brown
and the Fallie. Work was started yesterday
raising the wickets at most of the dams along
the Ohio river, which, no doubt, will slacken
the current at No. 16, and the boats will be
due here a couple of days late.
Orders have been issued by the .American
Connellsville Coal & Coke Company, with
offices in Pittsburgh, for the firing of their
entire plant at American No. 2. This plant is
located at Lynn Station and is the old Francis
No. 1 plant of the Sunshine Coal & Coke Com¬
pany. It consists of 240 ovens and all of them
will be fired. For the past few weeks repairs
have been made to have the plant ready to fire
when orders, would come. The American Con¬
nellsville Coal & Coke Company has three
plants in the Connellsville region — American
No. 1, the old Cyrilla plant of the Sunshine
Coal and Coke Company, American No. 2,
the old Francis No. 1 plant, and the
American No. 3, the old Francis No. 3 plant.
There are 142 ovens at American No. 1 and
all of them are in blast. There are fifty ovens
at .\merican No. 3, the only plant which the
company will have idle. Frank Byrne of
Uniontown is the superintendent of the No. 3
plant. The coke from this plant will go to
the domestic trade.
Coal operators and miners scored against
the railroads at the hearing before the Ohio
utilities commission in Columbus. The miners
complained that rates in Ohio coal are exces¬
sive and discriminatory when compared with
shipments from the West Virginia fields. The
Ohio commission sustained miners’ objections
against the introduction of railroad testimony
bearing upon mining conditions and the causes
for various grades of coal. John F. Wilson
of Columbus, counsel for the railroads, at¬
tempted to get data from Frank A. Ray, nro-
fessor of mine engineering at Ohio State Uni¬
versity, on the cost of mining coal in West
Virginia. Chairman Waltermine, of the utili¬
ties commission, in ruling against the question,
said: “We are not making this inquiry be¬
cause of deplorable conditions among the
miners. The only question is whether freight
rates on coal are reasonable. This question
cannot be determined by going into the side
issue of mining conditions either in this state
or other states.” Each side is represented at
the hearing by a large number of lawyers,
A. P. Burgwin of Pittsburgh acting with Karl
Burr of Columbus, as counsel for the Penn¬
sylvania Lines West.
Death of W. W. Ritchie.
On Monday of this week, W. W. Ritchie,
manager of the city office of the Bell & Zoller
t.'oal Company of Chicago, died at the family
home at Vandalia, Ill.
William Wilson Ritchie was born at Greens-
burg, Ind., February 28, 1874. He was, there¬
fore, forty-one years of age. He moved from
Indiana to Vandalia. Ill., in 1880, where he
continued to reside until 1902. In the latter
W. W. Ritchie.'
year he accepted a position with the Bell &
Zoller Coal Company of Chicago, as a travel¬
ing salesman. He made a pronounced suc¬
cess in that undertaking and was soon ad¬
vanced to the position of manager of the city
office, which position he continued ,to fill
until his death.
On November 11, 1911, Mr. Ritchie married
Miss Rose G. Bingham in Oklahoma City.
The funeral services were held at the home
of John A. Bingham of Vandalia, on Thurs¬
day afternoon of this week. They were con¬
ducted l)y tile Masonic lodge, as he was a
menilier of No. 16, F. & A. M. of Vandalia.
Nation Wins a Suit,
Denver, August 12. — (Special Correspond¬
ence.) — The Government won an important de¬
cision in federal court here Monday, regaining
title to 1,180 acres of valuable coal lands near
Delta, on the western slope, held by the Explora¬
tion Company, Limited, of London, owners of
several Coolrado mctaleferous mines. According
to the ruling of the court, the lands which are
valued at approximately $500,000, were acquired
through fraudulent means.
The case, owing to the wealth of the owners
of the land and the prominence of counsel on
both sides, has attracted widespread interest. The
Exploration Company is controlled by some of
the richest men in the world, all residents of
London. Philip L. P'oster of New York is the
agent and trustee of the company.
The decision in the case was handed down liy
Federal Judge Treiber of Arkansas, who heard
the evidence a short time ago. He said that the
entries were not only acquired by fraud, but that
the passive concealment of the act precluded the
company from pleading the statute of limitations,
and it could not escape loss of title to the lands.
Frank Hall, special assistant to the attorney
general of the United States, handled the case for
the Government, and Vaile, McAllister & Vaile
for the London company. The latter immediately
gave notice of appeal.
A New England Change.
Boston, M.4SS, August 11.— (Special Corre¬
spondence.) — One of the most important trans¬
actions in the Boston coal trade in recent
years has just been closed. Owing to a dis¬
agreement between the meiiEbers of the firm
of Pratt, Staples, Bell & Young, Incorporated,
and certain New York interests. Staples and
Bell have sold their interest in the concern
to Pratt and Young.
The company was formed in the early part
of 1914 and since then has been one of the
most progressive middle houses in New Eng¬
land. The disagreement referred to arose
over a difference of opinion as to whether or
not certain stock of the company had voting
power.
In a recent court decision, full account of
which was given in The Black Diamond, the
master upheld the contention of Staples and
Bell. In the agreement just reached by all
parties, the master’s decision was confirmed.
It is rumored among the trade that Pratt
and Young will continue the business of the
corporation under a new name, probably their
own, and that a new corporation is being
formed by Staples and Bell to handle several
well known anthracite and bituminous coals
throughout New England. Inasmuch as the
suit above referred to was not decided as the
New York interests of Pratt and Young con¬
tended, it is understood that a large sum of
money was paid to Staples and Bell for their
interest.
Dr. E. W". Parker Selected.
Edward W. Parker, who for a quarter of a
century has prepared the annual reports of the
Lhiited States Geological Survey on the produc¬
tion of anthracite and bituminous coal, has been
selected to take charge of the Anthracite Bu¬
reau of Information supported by the anthraciie
coal mining operators, both the large companies
and independents as well, for the entire region.
The objects of this new bureau are to collect,
compile and distribute information regarding the
anthracite industry, and it is located at No. 1032
Miners’ building, \Vilkes Barre, Pa.
Much of this work has for a number of years
been handled by the Bureau of Anthracite Coal
Statistics, under the direction of the late \\k W.
Ruley, and since his death it has been in charge
of A. H. Armstrong. But the scope of the neiv
bureau will be considerably extended. The Bu¬
reau of .Anthracite Coal Statistics will be merged
with the new bureau and moved to Wilkes Barre,
and it is understood that Mr. Armstrong will
remain in charge of that portion of the work.
Very accurate statistics have been kept in tiic
past and various departments of the Federal Gov¬
ernment have been in the habit of calling upon
the hureau for much information because of the
thoroughness and accuracy with which it has
been prepared.
Mr. Parker has been selected because of his
record during the past quarter of a centurv
for accuracy iu statistical matters and for intelli¬
gent discussion of causes and effects which have
made the Geological Survey reports models of
their kind. lie was a member of the .Anthracite
Coal Strike Commission appointed by the Presi¬
dent of the United States in 1902.
Charles Gallagher, general agent of the Pitts¬
burgh Coal Company here, was called to Chii)-
pewa Falls, Wis., this week by the death of his
mother.
128
THE BLACK DIAMOND
[August 14
July Anthracite Output.
Philadelphia, August 13. — {Special Corre¬
spondence.) — According to the statement of the
Bureau of Anthracite Coal Statistics for the
month of Jul}% only two of the hard coal car¬
riers showed an increase in tonnage handled in
anthracite over the corresponding period of the
last year.
The total tonnage for the month showed a
decrease of 542,348 tons as against the tonnage
carried last year. This, with the decrease shown
in the production during the month of June,
shows the coal on hand at the present time to be
considerably less than last year. In addition the
bureau’s figures show that the coal on hand at
tidewater shipping points to be 636,384 tons on
July 31 as compared with 739,729 tons on June 30.
The two roads that showed an increase were
the Philadelphia & Reading and the Delaware &
Hudson Company. These increases in the face
of heavy decreases on the other roads have
mostly gone into storage so that they can hardly
be said to be an increase “on the wheels.” The
decrease in production of nearly two million tons
on the year as compared with the amount of last,
is also taken as an indication that a shortage
can be expected if untoward demand developed
with the fall buying.
The bureau’s figures follow :
buckwheat Sizes Below
No. 1 and Buckwheat Total
July, 1915 —
Larger Sizes.
No. 1.
Shipments.
Philadelphia & Reading.
727,539
112,015
839,554
Lehigh Valley.
907,611
117,000
1,024,611
Central of New
lersey .
472,477
125,515
597,992
Delaware, L.
\V .
471,812
70,963
542,775
Delaware & Hudson . . . .
577,181
120,622
697,803
Pennsylvania .
303,703
65,847
369,550
Erie .
558,972
101,038
660,010
N. Y., O. & W.
R. W.. .
183,385
18,525
201,910
Total ....
4,202,680
731,525
4,934,205
Year 1915 —
Philadelphia &
Reading 5,498,658
754,167
6,252,825
Lehigh Valley.
6,604,893
719,566
7,324,459
Central of New
Tersey.
3,642,441
754,400
4,396,841
Delaware, L. &
W .
4,293,181
818,202
5,111,383
Delaware & Hudson...
3,872,267
629,328
4,501,595
Pennsylvania .
2,838,390
501,114
3,339,504
Erie .
3,722,328
684,764
4,407,092
N. Y., O. & W.
R. W.. .
1,072,777
123,033
1,195,810
Total ....
31,544,935
4,984,574
36,529,509
Buckwheat Sizes Below
No. 1 and Buckwheat Total
Tuly, 1914 — Larger Sizes.
No. 1.
Shipments.
Philadelphia & Reading
721,863
110,102
831,965
Lehigh Valley .
911,237
114,988
1,026,225
Central of New Tersey.
570,718
138,173
708,891
Delaware, L. & W .
704,343
122,428
826,771
Delaware & Hudson...
578,351
93,331
671,682
Pennsylvania .
346,332
60,428
406,760
Erie .
593,111
124,090
717,201
N. Y., O. & W. R. W. . .
180,081
22,281
202,362
Total .
4,606,036
785,821
5,391,857
Year 1914 —
Philadelphia & Reading 5,995,116
868,497
6,863,613
Lehigh Valley .
6,486,452
694,848
7,181,300
Central of New Jersey.
4,248,579
849,399
5,097,978
Delaware, L. &W .
4,510,990
914,287
5,425,277
Delaware, L. & W .
4,510,990
914,287
5,425,277
Pennsylvania .
3,149,706
474,142
3,623,848
Erie .
3,966,194
741,034
4.707,228
N. Y., 0. & W. R. W. .
1,200,890
• 149,955
1,350,845
Total .
33,066,434
5,271,212
38,337,646
New Coal Mining Companies.
Okmulgee, Okla. — The Okmulgee Coal Com¬
pany, which was recently incorporated for
$20,000, has purchased the holdings of the
Blackstone Collieries, Inc., and are now in¬
stalling full electric equipment in the Black-
stone mines for the cutting, hauling and
preparation of their coal. This company has
also acquired a considerable amount of addi¬
tional acreage, and intends to develop a new
slope in the next few months. When this is
completed, the Okmulgee Coal Company will
have three slopes in operation in the Hen-
ryetta field, tributary to both the P'risco and
M. O. & G. railway systems. The officers of
the company are: W. Thornburgh, president;
W. H. Wigton, vice-president, and Harlan
Read, secretary. The vice-president, Mr.
Wigton, has entire charge of the development
work and the operating department.
Mistletoe, W. Va. — The Silush Coal Com¬
pany was organized July 12, with a capital
stock of $50,000. The present capital paid
in is $13,000, and the balance is to be paid in
four equal monthly installments. The officers
are: E. B. Siler, president; A. O. Siler, secre¬
tary and treasurer, and C. C. Lovet, general
manager. The general manager’s address is
at present Mistletoe, W. Va., though applica¬
tion has been made for a postoffice of the
same name as the coal company. Work is
progressing very rapidly, and the company ex¬
pects to ship coal over a shaker screen in
ninety days from date of organization. The
grading of the siding, the machinery, and the
building of a large storehouse and several
knock-down miners’ houses has already been
contracted for and the company is in no need
of material at the present time. The com¬
pany has so far discounted all bills, and ex¬
pects to continue to do so.
Theory of Kuhn Machine.
(Concluded from page 121.)
him long to decide that, if the lateral pressure
of the exploding powder was to do any effective
work, there must be a vertical cut in the face in
the room center.
By placing the shot half way between the floor
and the roof and by undercutting and center
shearing he had two directions where the re-
sh^tance was small. And, he had a buffer of coal
between the shot and the roof. This allowed him
to release a lot of coal from its solid cemented
state; to save the roof; to use only half the
powder the miners used, and to eliminate blow¬
out shots.
Mr. Kuhn knew too that because little of the
force of the powder went into the roof, the roof
material would not be broken by the explosive.
Tliere was lessened danger that it would come
down. If it did come with the coal, the work¬
man would be out of danger. If it came later,
he could dodge under the machine and still be
safe.
But this theory and method carried out to this
point left the coal almost in the solid; some of
the main cleavage lines were released or partially
released, so that a small amount of power would
mine the coal out of its native bed — but still it
must be mined out and put into the pit wagons.
Coal in this state was anything but a stock pile
of coal that might be attacked by conveying
apparatus and loaded into pit. wagons.
It took some years to develop a method and
machine to mine the coal from the semi-solid and
place it in the pit wagons, and a long time to
develop horizontal cutting, shearing and drilling
apparatus that would do their part of the pre¬
paratory work quickly.
The specifications were :
A horizontal cut must be made in less than
twenty minutes ;
A shearing cut in less than 10 minutes ;
Two or three holes must be drilled six to
seven feet deep where wanted in five minutes ;
Total time, thirty to thirty-five minutes.
The whole operation must be done with one
machine, easily and instantly controlled, by any
class of labor, must be “fool-proof,” must not
fill the working place but give plenty of clearance
in three dimensions, must be flexible — move side¬
ways or vertically at the will of the operator, —
must not depend on tracks but must work with
tracks, must travel short distances in a few
minutes, must be strong and not break. And on
top of this and in combination with the other
apparatus, it must mine and load the merchant¬
able coal out of the semi-solid at the rate of a
ton a minute. And finally, the power consump¬
tion must not exceed a kilowatt hour to the ton,
because the latter meant small capital expenditure
for the machine. Small power consumption and
large, simple parts several times too strong also
meant a meager repair bill and small depreciation
charge.
Having decided on a method and the necessary
apparatus to carry it out, it is necessary to com¬
bine all in one machine. This proved easy, as
it was built in steps, parts and apparatus were
developed sometimes alone, and sometimes in
combination in the same machine. Then com¬
plete machines were developed, re-designed and
rebuilt until all co-operative parts acted as one
well developed machine.
He now had all the devices which worked to¬
gether quite naturally. mechanical question
was still to be answered: Was it to do all of
this work and still keep down the power cost?
Anyone who, in an automobile, has “ground” up
a hill on low gear, can answer that question. On
such a pull, the engine “races,” but the gears in
the transmission system work slowly. Mr. Kuhn
employed that same principle in his machine.
He uses only one motor, but it “turns over” fast.
But the wheels of the truck — operating on the
twin screw propeller principle — move very slowly.
The coal loading apparatus does the same.
One short statement measures the result : It
requires only five horse power to turn over the
motor and its connected gearing. It requires
only an additional one and a half horse power
to move the machine in any direction and only
several more to mine out the coal.
It takes more power, of course, to undercut
and to shear the coal because there the chains
must move at high speed.
)Vhen he took the power readings on the first
series of tests, Mr. Kuhn knew that he had at
last perfected the machine on which he had been
working for years. It actuall:^ cut the labor cost
from fifty-three to eighteen cents a ton. In
doing so, it added only one cent a ton for power
and about three cents a ton for interest on in¬
vestment and depreciation. His total cost of
getting coal in the car was only twenty-two cents,
with no dead work charges. He was thus able
to put coal on the cars for less than half what
b.and and machine mining and loading had been
costing.
With the design and the cost of production
fixed, he had but one more problem. That was
to make the machine so strong, no one and noth¬
ing ordinary could break it. He wanted to make
it fool proof. To do that he kept adding weight
to the parts. Some of the later machines had
parts twice as heavy as the original. He could
do that because, everywhere, there is plenty of
room in which to make any part heavier. The
machine now shown to visitors is so strong that
it has resisted the impact of a fall of 200 tons of
rock and slate. Not only did it not break, but
backed from under the fall and loaded it out.
It is, therefore, strong, but he still has room
enough left to double the weight of parts with¬
out changing the design. If that were done he
would make it sturdy enough to resist a dyna¬
mite explosion. And, to do it he need not change
a single line.
If in any mine the floor is too soft to support
so much weight or if there is a heaving bottom,
all he has to do is to add breadth to the traction
wheels. He can make the equivalent of a road
roller out of it at will, for there are no low hang¬
ing gears to interfere with the breadth of his
tread.
It was said at the start that something would
be told about the man. Since this is an article
about a machine, that something had to confine
itself to his mechanical method of thinking and
to the results which have followed. But that
does not tell it all. As a matter of fact all of
this — and much more — mechanical work was done
in the time which some coal men devote to golf
et cetera. It was a form of recreation.
His main work in the last ten years has been
to take a coal mine which produced 400 tons a
day and to expand it into a concern which pro¬
duces 3,000,000 tons a year and which controls
some of the best acreage of coal in the world.
To tell about that commercial success demands
more space than is allowed in the tailpiece of an
article.
So, with a warning that there is another side
to the man, we will let the mechanical genius
pervade this article and write about the commer¬
cial phase of him in the next one.
July Coal Receipts.
During July 1,235,130 tons of coal were re¬
ceived at the head of the lakes, of which 230,620
was anthracite and 994,510 was bituminous. This
gives a total of coal received for the season up
to August 1st, compared with the same period a
year ago, as follows :
1915 1914
Anthracite . 770,920 775,800
Pituminous . 2,770,145 3,856,100
Totals . 3,541,065 4,631,900
The receipts by the various companies with
docks at Duluth and Superior were as follows in
July:
Anthracite Bituminous Total
Northwestern . 90,350 172,000 262,350
Pittsburgh . 43,500 132,700 176,200
Berwind . 82,500 82,500
Osborne . 31,200 46,900 78,100
Lehigh Valley . 8,070 . 8,070
Sunday Creek . 2,500 2,500
Boston . 5,500 5,500
Island Creek . 7,500 63,700 71,200
Clarkson . 3,200 47,610 50,810
Carnegie . 31,800 135,600 167,400
Reiss . 10.000 51,500 61,500
Zenith furnace . 94,000 94,000
Hanna . 49,000 49,000
Reading . 5,000 . 5,000
Great Lakes . 39,000 39,000
Missabe . 72,000 72,000
Totals . 230,620 994,510 1,225,130
C. M. Blanchard, local manager for Jeffrey
Manufacturing Company, states that inquiries
for machinery and equipment is being received
from coal mining people, and business with this
class of trade indicates increased business both
for them and coal people.
No. 7]
129
THE BLACK DIAMOND.
Western Coal Rates Rise; Anthracite Rates Cut.
The Interstate Commerce Commissicm this
week handed down two big decisions on coal
rates.
In the western five per cent rate advance
case, it decided against the coal men and said
that the rates on coal, except those to South
Dakota, have been justified and therefore, that
the order suspending those rates is vacated.
This means that the new tariffs, put out a
good while ago, will become effective at once.
The Commission says that the advance in
some cases is only eight cents a ton, but in
other cases is ten cents a ton. On the aver¬
age, the increase is a fraction less than ten
cents. The territory affected is that west
from Chicago to the Rocky Mountains.
In the anthracite case the railways lost.
They were not, in that case, petitioning for
higher rates. Rather the Government was in¬
vestigating those roads under an old charge
that some violations of the law were evident
in the careful supervision maintained over
prices in recent years. The charge was that
the railroads and coal companies were very
close together. It was, in fact, declared by the
Government, that the two were really one.
The first effort was to prove a violation of
the Sherman act. When this failed the Gov¬
ernment proceeded to strike at the railroad
rates. It was the belief that while the coal
companies were not making money, the com¬
bination did make enormous amounts because
of the high freight rates charged. The deci¬
sion of the Commission is a clear effort to
strip this “combination” of the profit it has
been making. Therefore, rates on anthracite
are reduced radically, especially between the
mines and points on the roads which are
called the “hard coal carriers.” On the aver¬
age, the reduction demanded ranges between
fifteen and twenty-five cents a ton. In some
cases it runs as high as seventy-five cents a
ton. The annual loss to the railways is va¬
riously estimated at between .$8,000,000 and
$10,000,000,
It is believed in Washington that the deci¬
sion of the Commission on the anthracite
cases meets the approval of the president. It
is known, however, that the decision in the
western rate case does not come up to Mr,
Wilson’s idea. He had no particular point of
view on western coal, but he did want the
western roads to get more revenue for carry¬
ing the other commodities.
The Commission did the reverse in the
whole five per cent advance case, of what it
was expected to do and of what it really did
in the eastern rate case. That is, it denied
the advance on general commodities and
granted the increase on coal.
The Western Coal Rate
In the western rate advance case there was
one point in particular against which the coal
men were fighting. The railroads serving the
Indiana and Illinois mines by carrying coal to
Minnesota points proposed to increase their
rates ten cents a ton. The roads serving the
docks into the same territory did not ask for
any increase. The western coal men declared
that if this unequal advance were to be sanc¬
tioned the effect would be to throw the west¬
ern lines out of competition because there
would be a differential of ten cents a ton, on
Minnesota business, against them.
The Commission recognized this point and
spoke of it in its decision. However, it said
that the rates might go into effect just the
same.
There was also, in the hearing, some discus¬
sion of the proposed rate to South Dakota.
The western coal men could not see that this
increase, which was to apply from the docks,
as well as from western mines, could do any
damage. It might, in fact, give the western
coal some little advantage in that territory.
The Commission looked at the matter differ¬
ently. It said that the proposed rate from
the docks to South Dakota was out of fine
with the rates from the docks to the Twin
Cities. That is, the per ton mile rate to South
Dakota would be higher than the per ton mile
rate to the Twin Cities. This was against the
accepted principle that the per ton mile rate
should decrease as the length of haul in¬
creased. The Commission therefore refused
The Commission Hands Down Two Big
Decisions by Which Western Operators
Lose Territory and Anthracite Carriers
Lose Money.
to allow the increased rate from the docks to
South Dakota.
In both of these rulings the Commission
struck hard at the western coal interests. Its
decision will, no doubt, block, in large meas¬
ure, all but the very best of the western coals
out of the Twin Cities. At present the east¬
ern and western coals are on as near a parity
as it is possible to get them, everything con¬
sidered. Under the new ruling the Illinois
coal will be under a disadvantage amounting
to about ten cents a ton. This must mean the
throwing of much business to the docks that
the western operators have had. If not that,
then western operators must sell their coal
there at cost or below.
In other than “ex-lake territory,” the west¬
ern operators did not care much what was
done to the rates. That is, so long as the
rates were horizontally advanced and so long
as no one field was given an advantage over
another, the coal men were willing that the
carriers should have a larger revenue. There
were a few points, however, where inequali¬
ties of rates in the proposed tariffs were sug¬
gested when the hearing of this case was held.
The Commission brushed aside all protests of
the coal men. It even closed its eyes to all
consideration of what the operators considered
an injustice to certain fields. It decided in
favor of the railroads.
As nearly as it is possible to get at the com¬
mission’s reasoning on this subject, it is as
follows :
Coal is a low grade and low priced com¬
modity. The railways have, for years, taken
that into consideration in making their rates.
But the situation has changed in recent years
in certain particulars. That is, the slack coal
used to be of no value. To help find a mar¬
ket for it, the railroads made low rates on this
slack. This had the desired effect, and the
market has grown steadily. As the market
grew, the price has advanced. Therefore, the
average price on coal must be more satisfac¬
tory. The railroads have, in a substantial way,
favored the coal business long enough. It is
about time that they began to get proper com¬
pensation.
That is not the way the Commission worded -
it, but that seems to be a correct statement
of the spirit in which the decision was writ¬
ten. _ This attitude contrasts sharply with the
opinion of the same commission on the same
commodity in the eastern territory. The lat¬
ter decision was made but a few months ago.
A Dissenting Opinion.
Commissioner Daniels dissented vigorously
from the decision of the other members of the
Comvnission on the whole western rate ad¬
vance case. He suggests, in fact, that the
question was not decided upon its merit, but
that the major consideration was: What will
be the political effect if we decide this way
or that? Will the people be better pleased if
we hit the railroads than if we advance the
rates so that the average consumer will have
to pay more, even though we thus aid a return
of prosperity?
It is intimated in Washington that the rail¬
roads are far from satisfied with the decision
of the Commission and will at once ask for a
rehearing. It is hinted, even, that President
Wilson may ask the Commission to grant a
rehearing.
The Anthracite Decision
The anthracite case was decided on Thurs¬
day. The Commission was expected, at the
same time, to hand down its decision in the
proposed advance in rates to Chicago. Con¬
cerning this decision, an Associated Press Dis¬
patch says:
“Washington, D. C., August 12th. — The inter¬
state commerce commission today handed down
its long expected rate decision in the case of
the anthracite railroads.
“In addition to ordering a drastic reduction in
the freight rates on anthracite coal which it is
estimated will cost the carriers close to $10,000,-
000 annually in revenue, the commission urged
the department of justice to prosecute several of
the carriers for flagrant violations of the inter¬
state commerce act.
_ “The commission charges the roads with stifling
independent coal operators by making concessions
in joint and through rates to coal companies
wholly controlled by the railroads, as well as by
loans at low interest rates, and leases of valuable
properties at inadequate rentals.
“The decision today was the second in two
days in which the railroads have been jolted
severely oy the commission.
“A third, in the case of the Rock Island inves¬
tigation, is expected tomorrow or Saturday, and,
according to authoritative sources, the Rock
Island verdict will be even more severe than that
in the case of the anthracite carriers.
“The cut in rates ordered by the commission
today amounts to 15 cents a ton on shipments of
the so-called prepared sizes— stove, chestnut and
egg coal— from the mines to tidewater and 10
cents a ton on the smaller sizes of coal. These
rates instead of being $1.60 and $1.45 a ton will
now be $1.45 and $1.35.
“The reductions to interior points on the hard
coal roads are much larger, ranging all the way
from 15 to 80 cents a ton. The Delaware and
Hudson Railroad Company’s rate to Windsor,
N. Y., for instance, is cut from $1.65 to 85 cents
a ton, while the rate of the Delaware, Lacka¬
wanna and Western to Syracuse is reduced from
$1.90 to $1.40.
The Roads Hardest Hit.
“The railroads involved in today’s decision
were :
The Central of New Jersey.
The Philadelphia and Reading.
The Delaware, Lackawanna and Western.
The Lehigh Valley.
The Erie.
The Wilkes-Barre and Eastern.
The New York, ousquehanna and Western.
The New York, Ontario and Western.
The Pennsylvania.
The Northern Central.
The Delaware and Hudson.
“Of these the Pennsylvania is the least affect¬
ed. Its rates to tidewater and to interior points,
which were lower than those of other roads, are
not chaaged, except in some of the joint rates
affecting the Northern Central.
“Opinions differed in Washington regarding
the possible effect of the decision on the price of
coal to the consumer. If the reduced rates are
reflected fully in the retail prices of coal, the
saving on the 71,000,000 tons that are mined each
year would, of course, be a substantial item.”
The documents on both of these cases came
to hand on Friday mornin.g, or within an hour of
our_ press time. A complete analysis of the two
decisions is, therefore, impossible in this issue.
A full discussion of the two decisions will be
made next week, together with a statement of
what the change in rates will mean to certain
coal consuming districts.
Representatives of the Italian government have
been in correspondence with various coal produc¬
ers in Cincinnati in reference to the submission of
contracts for the furnishing of coal for gov¬
ernment use, both in bunker and for delivery at
Italian ports. One New River company has a
large block of its production under option with
the Government, the option expiring with the
close of this week. It is practically certain that
the option will be closed by acceptance of the
product, and, if so, this company will likely go
out of the market.
A large number of the men employed on the
dock of the Northern Coal & Dock Company in
Superior struck Monda)' morning after their de¬
mand for ten cents an hour extra for overtime
had been refused. A compromise was reached
on Tuesday morning and the men all went back
work. The terms of the compromise were not
given out, but it is understood that they will
receive additional pay for overtime. They re¬
ceive twenty-two and one-half cents an hour for
regular time. Sixty men are employed at the
dock.
Central Coal & Iron Company, with furnace
and mines at Holt, Tuscaloosa county, Ala., has
put in operation coal mines to full capacity.
130
THE BLACK DIAMOND
PUBI.ISHED EVERY SATURDAY BY THE
BEACK DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACK DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Uroadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, August 14, 1915.
INDEX.
Special Articles.
Page
Theory Underlying the Kuhn Machine . 121
An Explanation of How Coal Tar Is Recovered . 122
Lignite as First Aid to the Settler . 123
('anadian Toluol and Benzol . 123
Possible Substitute for Anthracite Coal . 124
Taking Coal From River . 124
Ohio Rate Hearing Becomes Important . 125
England Has Serious Coal Problems . 125
New York Golf Tournament . 125
A Statement About the New Coal Association . 126
Attack Compensation Act . 126
Oklahoma Coal Yield . 126
Small Activities . 127
Death of \V. \V. Ritchie . 127
Nation Wins a Suit . 127
A New England Change . 127
Dr. E. W. Parker Selected . 127
Tuly Anthracite Output . 128
New Coal Mining Companies . 128
July Coal Receipts . 128
Western Coal Rates Rise; Anthracite Rates Cut . 129
Editorial . 130
News Local to Chicago . 132
Facts Which Determine Our Export Prospects . 133
Market Reports.
(ieneral Review and Chicago . 134
Pittsburgh, Louisville and Toledo . 135
Cincinnati, Twin Cities and Duluth.. . 136
Indianapolis, Denver, Detroit, St. I.ouis and Omaha.. 137
New York . 138
Philadelphia and New England . 139
Baltimore, Buffalo and Birmingham . 140
Hocking X’alley . 15
Public Cost Accounting.
The Federal Trade Commission is ])lan-
ning to introduce cost accounting as a
means of relieving tlie difficulties of l)usi-
ness. It is going to lend the services of
pul)lic accountants to those who want to
install a i)roi)er l)ookkeeping system and
wlio want to learn how to use tlie infor¬
mation contained in books.
The coal trade is in such straits and is
so in need of help a danger presents itself.
Coal men are likely to accept pul)lic cost
accounting without figuring what the con¬
sequences are sure to be if the system is
carried to its logical conclusion. It is
well, therefore, to let the imagination play
upon the possibilities before plunging.
If government experts supervise coal
cost accounting, they will know what tlie
cost is. 'riien, if the Trade Commission,
which puts out the cost accountants, su¬
pervises the selling arrangements, the com¬
mission will know what the profits are.
That is, knowing the cost and knowing
tlie selling price, it is easy to figure the
profit.
Another point : It depends entirely upon
who is on the Trades Commission at tliat
time as to whetlier its rulings will lie fair
or unfair to business. For example, there
are several theories as to what is a jiroper
profit. One theory is that the money iu-
2'ested should have a certain return ; \vc
will say, ten per cent.
Anotlier theory is that there should be
a percentage of profit on each trade.
That is, a man buys a carload of coal and
sells it. lie lias invested, we will say,
J?200. 'I'en per cent of that would be $20.
fie turns tliat money over, if he is a re¬
tailer, in about tliree months. Then he
duplicates the operation and makes an-
other ten per cent or anotlier $20. In
the end lie lias made three turnovers of
ills money in tiie course of a year, making
$60 all told on his original investment, or
a profit of 30 per cent in the course of
that year. Which of these two theories
would the Trade Commission adopt?
More particularly, would the Trade
Commission make the same ruling on a
mine that it made on a retail yard? Would
it liold the retail yard to the same per¬
centage of profit that it gave the opera¬
tor? If it would, the retailer is out of
l)usiness before the ruling is even put into
effect. If the retailer had to make as little
per ton as the operator does, to retail coal
would be out of the question.
Also, how is the Trade Commission go¬
ing to look at a proposition of this sort :
The steel l)nsiness today is, because of its
tariff protection, making a profit of fifty
per cent. Tlie coal l)usiness is making
about one to one and one-half per cent,
or none at all. Will tlie Trade Commission
try to level up the coal profits to the
steel profits, or will it try to level the
steel profits down to the coal profits?
Will it try by cost accountants on one
side and public regulators on the other to
level one up and the other down?
Will this apply to big business and to
little business alike? AVill it give the
small coal retailer ten per cent on $.S,000
worth of business and then give the big
department store in Chicago ten per cent
of $50,000,000 of business?
Under the circumstances, what would
be the natural result to business? Will
not the little fellow cease to exist and the
big fellow hog it all because he has great¬
er funds upon which to grow?
We could go on with suggestions of
the possibilities of public cost accounting
to almost an unlimited extent. The point
is that the government is trying some¬
thing new. ft will be w'ell not to plunge
before we know what the consequences
are going to he.
Helping the Mines.
For two or three years, much has been
said about helping the coal mines out
ot their difficulties, d'he expression com¬
monly used does not convey the idea ex¬
actly. That is, the coal mines are not
asking the government to lend them any
money, or to extend to them any special
consideration. All they want is that the
government shall get out of the way and
let them do what is needed.
ff the government should consent to
extend practical hell) to coal mines, it
would probably he the kind that the ma¬
jority customarily gives to the minority.
The majority looks out for self first. If
anything is left over, the minority eats at
the second table. Interference with coal
mining by politicians as they are now
disposed, would be mainly to give a
greater number of voters — meaning the
miners — a greater amount of considera¬
tion — meaning more money. The coal
mines do not need that. They are getting
plenty of it from the department of labor.
There is serious need that something
be done to- keep most mining companies
alive. W'hat the government can do is to
(/aignst 14
stand aside and let the operators do for
themseh’es what they know how to do,
and what they know must be done.
We need not put into words, ])resuma-
hly, what the operators would decide upon.
The ])eople may rest assured, however,
that the result would not be the riotous
and wasteful competition and the foolish
tiissipation of investments which is going
on today.
In other words, coal would sell for what
it is worth. And it is worth more than a
cent a ton in the ground.
Understanding Your Subject.
(ffir good friends the Christian Scien¬
tists have a way of saying that your men¬
tal attitude toward a thing is all there is
to it. Consequently they are always keen
to find the proper mental attitude. Their
most valuable first aid is to use the Eng¬
lish language properly. As a rule, not
one of them will employ a phrase unless
he knows its meaning exactly. They are
all terrific students of the dictionary and
of the hooks on English.
It seems a far cry from religious phil¬
osophy to retailing in coal. But the two
things are mighty closely related in one re¬
spect at least. Yon can not do a successful
business unless you have a proper mental
attitude toward it. Yon can not have a
proper mental attitude if you are con¬
stantly using phrases which you do not
understand. Our suggestion is that if you
want to understand the coal business, you
must understand its terms.
'fhere is one word in particular which
will hear close study. We speak very
often of the “responsibility” for coal at
certain stages in its passage from the pro¬
ducer to the consumer. Responsibility
for anything generally attaches itself most
intimately to ownership and, after that, to
agency. Therefore the main question is :
Who owned the coal at the time the thing
in question happened?
In ordinary business procedure, an oper¬
ator sells coal “f. o. b. the mines.” That
being the case, the coal becomes the prop¬
erty of the purchaser when it was put on
board the car. With that passage of own¬
ership, responsibility also shifts. Respon¬
sibility for it therefore is not with the
producer but with the buyer.
Then arises instantly another question.
Tlie coal is not in the possession of the •
buyer while it is in transit. He owns it
and is responsible for it, but it is not in
his possession. In such an event the
owner has entrusted it to a second party
with instructions to carry it to a given
point. The responsibility there changes
again from the man wlio owns the coal
to the agent. But this is a transfer of
responsiliility througli an agency rather
than through a change of ownership. Un¬
der those circumstances the agent is re¬
sponsible to the principal — the owner —
for the coal.
Of course if the coal is sold f. o. b., such
and such a point — meaning a certain des¬
tination — the situation is reversed. In
that case the operator retains possession
of the coal and retains responsibility for
it until it gets to that destination and is
accepted.
This is one definition among many
which will help to emphasize the prin¬
ciple. The principle is that if you want
to understand a subject thoroughly you
No. 7]
THE BLACK DIAMOND
131
must understand the words and phrases
in which that subject naturally is couched.
If you cannot think without words, you
cannot think straight unless you under¬
stand the words.
Idle Car Statement.
For some time the railways have not
made public that enlightening document
of the American Railway Association
called the “idle car statement.” There
are, no doubt, good and sufficient reasons
for its non-appearance. It may be that so
many cars have been lying idle the rail¬
ways do not care to make an exhibition
of the fact.
Presumably, now that the car situation
is tightening, the publication of this re¬
port will be resumed. If this vivacious
publication is again circulated some infor¬
mation might be added that would in¬
crease its value. There might, for exam¬
ple, be a footnote to the effect that the
average number of cars hauled to a train
is such-and-such, and that the number of
engines, in good order, available is so-
and-so. This would indicate whether the
idle engines are capable of hauling the
idle cars. It does no good, you know, to
have cars if there is no motive power to
haul them.
Of course such information really can¬
not be part of such a report. But it
would be of value to the shippers if they
could know that track facilities were am¬
ple, that engines enough are on hand to
haul the trains and whether terminal
facilities are equal to the ta.sk of maneu¬
vering these trains.
We are getting around to a ])oint where
the railroads are likely to be hard put
to move the commerce offered to them.
This need not arise from the fact- that
commerce has actually developed a stu¬
pendous volume ; it might very well mean
that the railroads are not physically
equipped to take care of even ordinary
business.
If the American Railway Association
could prepare a document of the sort here
suggested it would prove enlightening
to shippers, even though it might not en¬
courage them.
Russia’s Back Door.
Even German thoroughness in material
preparation for military eventualities,
amazing as it has been, does not seem to
have been able to reach to what may
prove to be a vital factor in the ultimate
decision of the titanic struggle now rag¬
ing in Poland. That factor is what may
be termed “Russia’s back door.”
An Associated Press correspondent's
letter from Vladivostok under date of
June 25 calls attention to it. Students of
our foreign trade returns had suspected
its rapid widening, now related in detail.
They had noted that while our exports to
European Russia in the teri months end¬
ing with last April had fallen to less than
$17,000,000 from over $26,000,000 in the
same months a year earlier, exports to
Asiatic Russia had jumped from around
$1,000,000 to nearly $19,000,000. The
Herald noted this weeks ago as .showing
how the “blockades” and “war zones” had
changed trade channels rather than acted
as trade stoppers.
Of course, this is not the only country
from which Russia is drawing su])plies
through her back door. While the corre¬
spondent speaks of cargoes of cotton com¬
ing through the Panama Canal, of the 400
locomotives and 20,000 freight cars due
before the end of August from America,
he also speaks of shiploads of rifles and
cartridges already arrived from japan
and of naval guns from England for ships
building on the Black Sea. Ele tells of a
great harbor already crowded with ship¬
ping and of the swift building of more
docks and wharves at which to unload the
more and more ships that are coming.
That truly amazing German thorough¬
ness stopped Russia’s front door on the
Baltic and has so far barred the side door
at the Dardanelles. Undoubtedly it took
into account this back door, though not
able to stop it. And so it may come about
that the decision on the plains of Poland
will be made not so much on the firing
line as on the wharves of Vladivostok and
on the railway line that connects the bat¬
tle front with Russia’s back door. — The
Chicago Herald.
Discussion and Action.
Accurate cost accounting has two pur¬
poses. One is to suggest the price which
should be charged, the cost having been
determined. The other is to show where
the cost can l^e cut when study has proved
that it is too high.
In all the coal trade discussions of cost
accounting, most attention has been di¬
rected to the problem : How can we get
the price up to a point where it will cover
the cost? Very little attention has been
paid to the question : “How can we cut
the cost down to where it meets that
of our neighbor or to where it should
be? Concentration has been upon the
less important factor; we have neglected
the most important end of all accounting.
It does no man any good to know merely
what it costs him to do business. If he
is a coal man and if the figures prove that
it costs him $1.00 a ton to handle coal,
and if he accepts that as a proper cost,
laying the report aside, he might better
have saved the money which he paid the
accountant to make the report. But if the
figures prove that it cost $1.00 to handle
coal and if he had been charging seventy-
five cents, and if as a result, he begins at
once to charge more than $1.00, he begins
to use the report of the cost accountant
and thus to realize its value. He has
turned the information to good account.
If a coal man finds that his cost of do¬
ing business is $1.00 a ton and lets it rest
there, he is out of pocket the money he
paid the accountant. He has had a loss
for his pains. But if he finds that it costs
him $1.00 to handle coal while it is cost¬
ing somebody else sixty-five cents, and if
he studies how he may cut his cost down
to meet that competitor, then his outlay
for the cost accounting system was the
best possible investment he could have
made.
Of the two advantages of cost account¬
ing, the most difficult one to realize is
that which finds expression in an advance
of the selling price. The sale price of coal is
determined by the competition of all pro¬
ducers or dealers of a community. Prices
are not fixed alone by individual action.
Even if all competitors should unite to
advance the selling price to cover a re¬
cently discovered but extravagant cost of
handling, they would not dissolve their
difficulties. They would do nothing more
than invite an increase of competition as
others would want to participate in their
assured profit. Therefore, to advance the
price is to invite the destruction of their
own arrangement.
However, the man who learns the pres¬
ent cost of doing business and uses it as
a guide by which to improve his methods
is in a way to occupy a class by himself.
He soon learns to outdistance competi¬
tion.
What is more to the point, he thus
learns to keep out of the trade all others
except those who conform to his efficient
method of doing business and who, there¬
fore, have a low cost of handling coal.
The purpose of cost accounting which
expresses itself in a reduction of that cost
is best, all things considered.
Although some persons may think dif¬
ferently, the coal mines of America are
not run merely for the purpose of giving
jobs to the miners, freight revenue to the
carriers and cheap coal to the people. The
man who is doing a lot of work and tak¬
ing all of the risk should get some pay for
it. That is the purpose for which most
coal companies are organized.
A Suggested Experiment.
We would like to suggest as an experi¬
ment to some daring coal operators that
they enter an ironclad agreement to do
these things:
First, to employ high-grade account¬
ants to arrive at what is the actual aver¬
age cost of production in their field.
Second, to work co-operatively to find
what is the average cost of making sales
over their territory.
Third, not to sell their coal for less than
the cost of production plus the cost of
making sales.
We suggest that the operators enter a
trust agreement purposely made stronger
than any which has ever been framed in
America. The sole purpose of it should
be not to sell a ton of coal for less than
what it costs at the market.
This done, we suggest that the oper¬
ators make a frank statement of their
program to the officials of the United
States Government. This should not be
done as a banter or in a spirit of brag¬
gadocio, but with firmness as one stands
on his rights. Their defense should be :
“It is no restraint of trade for the pro¬
ducers to agree not to do business at a
loss.”
Elton Buckley said recently that the
laws were not framed to force men to do
business at a loss, but to prevent them
from combining to get an exorbitant mar¬
gin. We believe that the operators can
combine to get at least the cost of pro¬
duction. If they can, the laws of trade
fluctuation will enable them to get a fair
profit on the long run. This idea seems
to be upheld by the rule of reason intro¬
duced by the Supreme Court of the United
States in several of the anti-trust cases.
Who can fathom the mind of the Inter¬
state Commerce Commission. Today it ad¬
vances coal and holds other rates down.
Yesterday it did exactly the opposite.
132
THE BLACK DIAMOND
[August 14
News Local to Chicago.
One of tlie week’s visitors was Fred Scherer
of Ottawa.
Andrew I. Cochran, president of the Cochran
Coal Company, of Indianapolis, was calling on
the trade this week.
Mr. Fyke of the Marion County Coal Com¬
pany of Centralia, Ill., was in Chicago the
early part of this week.
Kuper Hood, general sales agent of the
Houston Company of Cincinnati, was a Chi¬
cago visitor within the week.
E. F. Pierce, vice->president of the Shelby
Coal Mining Company, Shelbiana, Kentucky,
was in Chicago last week getting a line on
the gas coal market.
C. C. Nash, formerly with the Harrishnrg-
Franklin Coal Company, has been added to
the city sales force of the P.uchanan Coal
Company.
F. Gascoigne, Chicago manager of the Ed¬
wards & Bradford Lumber Company, left this
week for the coast. Mr. Gascoigne is making
it a business and pleasure trip.
Miss Cummings, who is now in charge of
the Chicago office of C. G. Blake Coal & Coke
Company, is spending a two weeks’ vacation
at Colorado, and the Chicago office tempo¬
rarily is closed.
J. B. Hilton, purchasing agent for C. M.
Moderwell & Co,, will leave the middle of
August for a two weeks’ vacation. Mr. Hilton
will spend his time on the New Brunswick
shore, where fishing is always good.
Win. Leckie, president of the West Virginia
Pocahontas Coal Sales Corporation, passed
through Chicago this week on his return from
the Pacific Coast. Mr. I.eckie and his family
have spent the past month visiting the ex¬
position and other points of interest.
W. S. Taylor, western agent for the West
Virginia Pocahontas Coal Sales Corporation
with headquarters at Detroit, Michigan, was a
Chicago visitor this week. Mr. Taylor reports
a notable improvement in business and that
July was the record month for their Panther
mine.
Harry Trester, who has been manager of
sales for the A. B. Currie Company of_ Omaha,
has recently resigned his position and is spend¬
ing the month in Chicago. Fie says that_ he
has been in the harness for a good long time
and needs a rest, so he is going to take about
a month before he makes another connection.
The picnic of the Chicago Coal Merchants’
.Association will be held on Saturday of this
week at Fox River Park, on the line of the
Aurora, Elgin & Chicago railway. The sale
of tickets has been very heavy and the ex¬
pectations are that there will be an unusually
large attendance — weather permitting, of
course.
Ten years ago the Chicago coal trade held
a picnic, which resulted in a profit of over
$400. Shortly afterward at the suggestion of
George Merry, $300 of the amount realized was
used to purchase a bed in St. Luke’s Hospital.
The balance and accrued interest amounting
to $24.5.00 was turned over this week by the
trustees, F. J. Browning and D. W. Buchanan,
to St. Luke’s Hospital.
Among the week’s visitors was W. W.
Broughton, president of the Pittsburgh Coal
Company of Minneapolis. He was here study¬
ing the situation with regard to supplies and
said incidentally that most of the consumers
in the northwest had been doing the same thing
as had the consumers in other parts of the
country; namely, they have not been putting
in much coal.
The offices of the Old Ben Mining Corpo¬
ration in the McCormick building, are being
enlarged and generally done over. The new
arrangement will include six private offices
and a very large workroom, with a general
entrance and a rather long hallway. The
office is, in fact, to occupy the major por¬
tion of the south side of the eleventh floor
of the McCormick building.
The Springfield operators have recently
been making a very careful survey of the sit¬
uation. They found that the demand for do¬
mestic coal had been increasing and they be¬
lieve that the business for the next 2^2 months
is going to be extraordinarily strong. This
arises from the fact that the retailers have
been expecting low prices and have not bought
any coal up to now. Therefore, the market
is quite strong and it would not I)e surprising
if on the 15th of the month some of them
should put out a new circular of $1.05 for the
lump, egg and nut coal.
The officers of the Old Ben Mining Cor¬
poration a short time ago took their sales¬
men on a trip to the mines and made quite
an event of it. The salesmen in return wanted
to show their appreciation of the courtesy and
took up a subscription, which was turned over
The Old Ben Tablet.
to Dr. J. E. Beebe. He in turn had a bronze
tablet struck ofif, a photograph of which is
reproduced herewith. As can be seen, this
carries a first-rate likeness of Old Ben, which
has become the trademark of the company,
and an inscription commemorating the trip to
the mines.
A rather curious situation has prevailed in
the local coke market for the last three or
four months. The growth of by-product plants
has been so great that about all the western
needs for foundry coke can be taken care of
by production of western ovens. In fact, when
the iron and steel market went ofT, there was
more coke available than the market needed.
In consequence the production ran down to
about sixty per cent of normal in May and
June. Then the demand for furnace and
ioundry coke improved. Instead of this in¬
fluencing the price as is customarily the case,
the producer simply put more ovens into op¬
eration. Thus in July the ovens were run¬
ning to seventy or seventy-five per cent of
capacity and the further improvement in de¬
mand has made necessary running the ovens
to about eighty or ninety per cent of capacity.
Meanwhile there has been a rather .over¬
crowded market on the crushed or domestic
sizes. Recently, however, the domestic demand
improved enough to take up the increased pro¬
duction and to warrant a rise of ten cents per
ton in price.
While in Chica.go this week, George Barker,
vice-president, Maynard Coal Company, spoke
of the difficult condition, under which the
Ohio operator is trying to work his mines, due
to the shortsightedness of the officials of the
Miners’ Union. Some of the mining towns
m the Hocking have been practically aban¬
doned by the operators making it impossible
for men to make a livelihood of any kind as
the mines were their only source of employ¬
ment. From the operator’s standpoint the only
ray of hope was to secure a tonnage from
neighboring states, which were not dominated
by the United Workers of America. Mr.
Barker’s company was particularly fortunate
in this respect as it had a property at Hazard,
Ferry county, Kentucky, which is developing
rapidly. The coal is known to the trade as
the famous Daniel Boone coal. The prepara¬
tion is standard consisting of the following
sizes: four-inch shaker screened block, 2x4
inch shaker screened egg and two-inch nut and-
slack. While the Maynard Company will con¬
tinue to run their Ohio properties if market
conditions permit it is their intention to make
a specialty of their Kentucky product at this
lime.
The anthracite trade in Chicago is in a pe¬
culiar and interesting situation, as the result
of the attitude of the Interstate Commerce
toward the proposed advance in anthracite
rates. Quite a while ago the Pennsylvania
Railroad announced an increase of twenty-five
cents a ton in anthracite rates to Chicago. It
was compelled to equalize the Chicago rates
\vith those to points east, and it had an op¬
tion either of lowering those rates or ad¬
vancing the Chicago rate. It decided upon the
latter course. Incidentally, formal protests
against the increase were filed with the com¬
mission. Accordin.gly, the proposed increase
was suspended for 180 days. At the expira¬
tion of that time it was again suspended for
120 days. That was as far as the commission
could go under the law. Meanwhile the com¬
mission had taken testimony and briefs were
filed by the protestants and by the defendant
carriers. These were in the hands of the com¬
mission, which was able to reach no decision
before the summer vacation, which started on
on August 1st. As a consequence, the pro¬
posed increase went into efifect on July 17, by
tlie mere fact of the expiration of the time
allowed the commission for suspending rates.
Now Chairman McChord of the commission
says that the rates going into efifect now have
the same force as though they were sanctioned
liy the commission. This makes the anthra¬
cite rate to Chicago twenty-five cents a ton
higher than it has been. Protests were filed
by the Chicago Coal Merchants’ Association
and others, but these were known to have
no efifect under the circumstances. The Penn¬
sylvania Railroad finally, to simplify matters,
had put out a new tarifif, which combined
and_ explained several preceding tarififs on this
subject. One member of the Chicago Asso¬
ciation instantly seized upon this as a tech¬
nicality, which might be of use to the re¬
tailers. Therefore, a formal protest was filed
against this new tarifif because it proposed
a new increase in rates. In view of the fact
that_ the subject matter is still under consid¬
eration by the commission, it is doubtful
whether this additional protest will have any
effect. The only explanation which is ob¬
tainable from the commission comes in a
letter from Chairman McChord, who says that
the commission did not decide the Chicago
rate case, because it is really part of the gov¬
ernment’s investigation of the anthracite in¬
dustry and anthracite rates which has been
going on for about two years, and upon which
a report is soon to be forthcoming. Other
than that, the commission offers no informa¬
tion. The assumption therefore is that pres¬
ently, or after the commission’s vacation, there
will be put out jointly the decision on the
anthracite case as a whole and on the pro¬
posed advance of rates to Chicago. Meanwhile,
locally the rates are twenty-five cents a ton
higher, but this increase is being absorbed by
the coal companies rather than any higher
prices being made temporarily for anthracite
in the western trade.
President Howe of the Cincinnati Coal Ex¬
change is receiving a stack of letters compliment¬
ing him and the publication committee of the
exchange on the publication of the recent booklet
gotten out by the exchange, explaining the rela¬
tions between buyer and seller, shipper and re¬
ceiver of coal, and giving decisions of courts,
commissions and other authorities on puzzling
points in the relationship which exists between
the railroad companies and shippers, along with
other points of interest to coal dealers. Man¬
agers of all the large railroads have sent their
congratulations together with requests for con¬
signments of the booklets for circulation among
the agents of the companies as well as among
their coal shippers. The booklet was a happy
idea and has been received with pleasure by coal
men everywhere, as well as by the railroad man¬
agers. A very large edition was printed, but it
begins to look as though a second edition will
have to be placed on the presses.
No. 7]
THE BLACK DIAMOND.
133
Facts Which Determine Our Export Prospects.
The Export Situation.
July exports of bituminous over the At¬
lantic seaboard, ran very near 1,100,000 tons.
This was the second month when shipments
were over 1,000,000 tons. Below are details
of exports by the principal ports. Some un¬
reported cargoes from Philadelphia will likely
swell the figures from that port by some
15,000 or 25,000 tons.
Negotiations are now being conducted by
European coal people with American shippers,
that would indicate that the foreign coal im¬
porter is now much exercised over England’s
latest order restricting exports.
The Black Diamond learns from most au¬
thoritative sources that some very large deals
are now pending. There is every indication
that our exports for August will make a new
record, and that a further increase will be
shown in September, should shippers find it
possible to secure ample bottoms for the ton¬
nage they can sell.
A statement of coal exported in July by
ports and destinations follows:
July Bituminous Exports.
Phila-
Country —
Italy .
Argentine .
delphia.*
9,421
3,519
Cuba .
51,197
France .
21,637
Spain .
30,044
French West Africa
Brazil .
15,270
Grand Canaries. . . .
Danish West Indies
Porto Rico .
2,274
British West Indies
Algiers .
3,388
Dutch Guiana .
805
Hampton
Roads. Baltimore. Total.
374,270 80,768 404,459
68,893 28,038 100,450
5,001 17,685 22,686
4,404 10,220 14,624
13,889 34,333 99,419
7,282 26,191 55,110
2,970 14,077 47,091
12,910 18,850 31,760
. 988 988
12,027 3,002 15,029
. 371 371
. 2,907 2,907
. 3,953 3,953
. 3,000 3,000
7,651 7,651
2,677 2,677
7,439 7,439
13,451 13,451
63,502 78,772
7,604 7,604
1,088 . 1,088
21,772 21,772
6,546 6,546
736 736
1,189 1,189
52,800 52,800
8,883 11,157
12,641 12,641
. 3,388
. 805
712,955 234,380 1,084,890
Totals . 137,555
Incomplete; some cargoes yet not reported.
The Welsh Coal Situation.
Latest mail advices from Cardiff, under date
of July 30th, show that the coal market had
not by any means, recovered from the effect
of the week of idleness caused by the strike
of the Welsh miners. Following the settle¬
ment of the strike, there was a resumption
of work, but not more than seventy per cent
of the men returned to work immediately.
Therefore, with outputs below normal, and the
needs of the admiralty large, there has not
been much surplus coal of the favored grades,
for commercial sale. While production was
improving each day, the trade was faced
with a serious shortage of coal, making it
difficult for sellers to negotiate ahead for
shipments.
Since the date of these advices, a new re¬
striction order relating to exports has been
announced by the government. According to
this, no exports can be made to the allied
countries except by special license.
This will make it very unsatisfactory for
sellers to do business, and this will no doubt
cause the diversion of orders to America,
where purchases can be made with assurance
of regular shipments. Prices have advanced,
second admiralty grades being quoted at 27
to 29.S, against 25 to 26s as formerly. Ordinary
qualities are quoted at 26s. Black Veins are
said to have sold at 31s, with 27s as the nominal
quotation. Western Valleys are 28 to 30s.
Best bunkers are 22 to 23s; ordinaries 19 to 20s.
Patent fuel (briquett) firm at 35s for best
brands.
Foreign Vessel Rates.
Latest mail advices from Cardiff show
fixtures for coal as follows: To Ale.xandria,
20s 6d; Algiers, 17 francs; Buenos Aires, 26s
to 27s 6d: Bordeaux, 15 francs; Genoa, 16s
6d to 20s 6d; Gibraltar, 14s 6d; Lisbon, 12s 6d;
Marseilles, 20 francs; Naples, 15s 3d to 15s 9d;
Palermo, 21s 6d; Savona, 16s 6d to 20s 6d;
Rouen, 10s to 12s 6d.
From the Tyne to Algiers, 18s 6d; Bordeaux,
18s; Copenhagen, 12s; Genoa, 25s; Gibraltar,
18s; Marseilles, 24s 6d; Naples 15s 3d to 15s
9d; Port Said, 24s; Rotterdam, 12s 6d.
Hampton Roads Exports.
Exports from Hampton Roads by ports for
July, 1915, as compared with July, 1914, were
as follows:
Destination — .
Antofagasta, Chile .
Buenos Aires, A. K .
Bridgetown, Barbados .
Bahia, Brazil .
Branto, Italy .
Cristobal, C. Z .
Civita, Vecchia, Italy .
Curacao, D. W. 1 .
Cienfuegos, Cuba .
Cardenas, Cuba .
Cadiz, Spain .
Catania, Italy .
Casa Blanca, Morocco .
Copenhagen, Denmark .
Castries, St. Lucia .
Genoa, Italy .
Gaeta, Italy .
Dakar, French West Africa. .
Havana, Cuba .
Italian port .
Kingston, Jamaica .
Leghorn, Italy .
Las Palmas, G. C. I .
Lisbon, Portugal .
Maceio, Brazil .
Montevideo, Uruguay .
Messina, Sicily .
Maddaleiia, Italy .
Marseilles, France .
Naples, Italy .
Puerto Ferrao, Italy .
Puerto Plata, S. D .
Port Antonia, Jamaica .
Port Said, Egypt .
Palermo, Italy .
Para, Brazil .
Pernambuco, Brazil .
Rio de Janeiro, Brazil .
Rosario, A. R .
Piraeus, Greece .
Rotterdam, Holland .
San Juan, P. R .
Stockholm, Sweden .
Spezia, Italy .
Savona, Italy .
Santa Liberata, Italy .
Siracusa, Italy .
Santiago, Cuba .
St. Michaels, Azores .
St. Thomas, D. W. I .
Torre Annunziata, Italy .
Zarata, A. R .
Demerara, B. G .
Hamilton, Bermuda .
Santo Domingo City, S. D. . . .
La Plata, A. R .
Coronel, Chile, F. O .
Venice, Italy .
Brindisi, Italy .
Trapani, Italy .
Cavite, P. I .
Gunatanamo, Cuba .
Vera Cruz, Mexico .
St. Lucia, B. VV. I .
Totals .
Destination —
Antofagasta, Chile .
Buenos Aires, A. R .
Bridgetown, Barbados .
Bahia, Brazil .
Branto, Italy .
Cristobal, C. Z .
Civita \'ecchia, Italy .
Curacao, D. W. I .
Cienfuegos, Cuba .
Cardenas, Cuba .
Cadiz, Spain .
Catania, Italy .
Casa Blanca, Morocco .
Copenhagen, Denmark .
Castries, St. Lucia .
Genoa, Italy .
Gaeta, Italy .
Dakar, French West Africa..
Havana, Cuba .
Italian port .
Kingston, Jamaica .
Leghorn, Italy .
Las Palmas, G. C. I .
Lisbon. Portugal .
Maceio, Brazil .
Montevideo, Uruguay .
Messina, Sicily .
Maddalena, Italy .
Marseilles, France .
Naples, Italy .
Puerto Ferrajo, Italy .
Puerto Plata, S. D .
Port Antonia, Jamaica .
Port Said, Egypt .
Palermo, Italy .
Para, Brazil .
Pernambuco, Brazil .
Rio de Janeiro, Brazil .
Rosario, A. R .
Piraeus, Greece .
Rotterdam, Holland .
San Juan, P. R .
Stockholm, Sweden .
Spezia, Italy .
- 1914 - ,
Lambert’s Newport Sewall’s
Point. News. Point.
2,150 5,444
17,460
5,624 .
. 6,209
32,930
6,584
5,400
7,680
3,943
3,096
11,650
2,189 1,107
1,287
4,001 .
’9,693 !’.!!!!
2,347 .
597 .
1,270 .
2,988 .
3,188 .
20,450 .
6,000 .
2,005 .
8,443 .
. 1,298
. 6,392
. 4,524
125,588 48,177 11,634
, - 1915 -
Lambert’s Newport Sewall s
Point. News. Point.
7,651 .
47,103 . 10,135
5,390 .
2,975 3,980 .
. 28,580 .
52,800 .
10,202 4,633 .
4,400 .
1,510 .
1,915 .
2,970 .
5,435 .
. 4.110 .
. 2,677
. 2,731 4,514
86,346 11,119 .
. 4,921 .
13,451 .
. 1,630 3,382
11,454 14,828 4,916
3,785 .
17,889 .
7,004 .
1,889 .
1,098 .
11,008 10,764 .
12,581 .
. 24,430 .
. 7,282 .
17,235 6,218 .
9,046 .
736 .
3,654 .
5,001 .
7,860 .
. 4,000
4,840 2,400 647
20,982 16,875 5,705
4,309 4,228 .
4,404 .
. 12,027 .
7,145 1,738 .
12,910 .
5,187 42,498 24,795
Savonia, Italy .
Santa Liberata, Italy .
Siracusa, Italy .
Santiago, Cuba .
•St. Michaels, Azores .
St. Thomas, D. W, I .
Torre -Annunziata Italy .
Zarata, A. R .
Demerara, B. G .
Hamilton, Bermuda .
Santo Domingo City, S. D...
La Plata, A. R .
Coronel, Chile, F. O .
Venice, Italy .
Brindisi, Italy .
Trapani, Italy .
Cavite, P. I .
Gunatanamo, Cuba .
Vera Cruz, .Mexico .
St. Lucia, B. W. I .
Totals .
5,000 .
5,900 .
4,830 .
. 5,446 .
. 1,088
. 2,086
5,197 .
. 3,118 .
435,454 213,556 63,945
Foreign Freight Rates.
W. W. Baltic & Co., Produce Exchange,
New York, report as follows under date of
August 9:
Plate freights are practically the same as
a week ago, and a number of charters were
effected during this interval at or about re¬
cent quotations. Mediterranean freights are
firmer owing to the increased demand for
steamers for grain, and Cuban and West In¬
dian freights are also firmer on account of the
scarcity of tonnage available for this business.
We would quote freight rates on coal by
steamer as follows:
West Coast of Italy . 39s.@40s.
Marsedles .... . . . 37s. @ 38s.
Barcelona or other good Spanish port . 36s.@37s.
(Spanish dues for account of cargo.)
NOTE. — Charters for Italy, France and
Spain read: “Lay days to commence on
steamer’s arrival at or off port of dis¬
charge, Is. per net register ton per day
demurrage.”
Montevideo, about . 345
Buenos Aires or La Plata . '.34s.@34s. 6d'
(Above quotations on Plate coal by British
Steamers. Netitral steamers are more dif¬
ficult to obtain and the rates are always
higher.)
. 35s.@36s.
oantos . . ggg @375
(Consignees paying docas dues.)
Valparaiso or Callao . $6.5007.00
Havana . . 2.75 0 3.25
Cardenas or Sagua . 3.00 0 3.50
■ ■ ■ T -' -a' T ■ ■ ; . 3.2503.50
Port of Spain, Trinidad, about . 3.50
i‘- - ; . 3.25@3!50
ot. Inomas, about . 3 qq
Barbados, about . 'LL! slso
Kingston . 3.00@3!50
. 3.25 and p.c.
Santiago . 3.2503.50
Guantanamo . 3.2503.-50
Demerara . . 4.5005.00
Bermuda, about . 300
Vera Cruz . L .’ 3.25@3!75
lompico . 3.2503.75
Recent Coal Freight Charters.
Schooner Ed. E. Briry, Philadelphia to Fort de France,
coal, p. t.
Schooner Theoline, Philadelphia to Cay Francis, coal,
p. t.
Schooner Ann J. Trainer, Philadelphia to St. John,
N. B., coal, p. t.
Steamer J. A. Hooper, Baltimore to San Diego, coal,
p. t.
Steamer Titania (Ital,), Baltimore to west coast of
Italy, coal, p. t.
Steamer Nordland (Dan.), Philadelphia to Cardenas,
coal, p. t.
Steamer Lexie (Br.), Virginia to Montevideo, coal, 34s,
August.
Steamer Siljerstad (Nor.), Virginia port to River Plata,
coal, 34s 6d, August.
Steamer Corby (Br.), Virginia port to River Plata,
coal, p. t., August.
Steamer Orion (Greek), Atlantic Range to v/est coast
Italy, coal, 38s, August.
Steamer Tancred (Nor.), Newport News to St. Lucia,
coal, p. t.
Steamer Nicholaos (Greek), .Atlantic Range to Mar¬
seilles, coal, 37s, August.
Schooner Daisy Farlin, Philadelphia to St. John, N. B.,
600 tons coal, $1.90.
Schooner A. and M. Carlisle, Philadelphia to St. John.
N. B., 500 tons, $1.90.
Schooner Crescent, Philadelphia to St. John, N. B.,
coal, $1.90.
Steamer Calimeris (Br.), Virginia or Baltimore to west
coast of Italy, coal, 30s.
Steamer Ludgate (Br.), Virginia to Campana or Villa
Constitucion, coal, 34s Od.
Steamer Nea Helles (Greek), Baltimore to Virginia
to Piraeus or Eyra, coal, 30s, August.
Schooner L. H. Goward, Baltimore to Porto Rico,
coal, p. t.
Steamer Nordbotten (Swed.), Philadelphia to Narvik,
8,000 tons coal, p. t. prompt.
Steamer Commonwealth (Br.), Baltimore or a Virginia
port to River Plata, coal, 34s 6d.
Steamer Camlake (Br.), Baltimore to west coast of
Italy, coal, 36s, August.
Steamer Mar Mediterraiieo (Span.), Baltimore to Span¬
ish port, coal, p. t. spot.
Steamer Llongwen (Br.), Baltimore to west coast Italy,
coal p. t.
Steamer Georgios (Greek.), Baltimore to west coast
Italy, coal, p. t.
Steamer Falk (Nor.), Philadelphia to Manzanilla, coal,
p. t.
134
THE BLACK DIAMOND
[August 14
General Review.
Buying Has Been Delayed, Exports
Increase and Car Shortage Is
Inevitable.
I'or the first time in almost a year the national
coal trade has a definite drift. Kverything con¬
sidered, it may be said that the producers are in
control and will soon be able to dictate prices.
To understand the present national market in
all its moods and tenses, one must take many
commonplace things into consideration, but make
a new arrangement of them. 'J'hat is, one must
take stock of transportation facilities, mine devel¬
opment, mine working force and facilities for
ultimate distribution.
Thus, the production capacity of .American
mines is not far from r)()(),()()0,()()0 tons of coal per
year. .More has been produced and sold in a
few years of record, but it was only made possi¬
ble by extraordinary activity on the part of the
railroads. While the mines evidently can, in or¬
dinary times, produce more, it is not safe to
count on much more than .500,000, 000 tons of coal
without increasing facilities, and hence invest¬
ment. Even to get out so much demands the im¬
portation yearly of at least 2.5,000 miners from
Europe.
This volume of coal had to satisfy all home
demands and also the export and bunker de¬
mands. .^t present, exports are more than 100
per cent above normal : the railroads are begin¬
ning to take almost normal amounts ; factories
are in some districts taking more than they took
this time last year. The question demanding to
be answered is whether the possible supply of
coal will satisfy the demand in other directions.
Candidly, it seems that it will not.
.‘\nthracite is a first rate example. Last year
the operators in a studied campaign practically
forced the coal on the retailers ; they, in turn
hounded the consumers until they took in coal
on credit. This year both operators and retailers
have reversed their programs ; production has
been curtailed when consumers were backward
with orders. As a result, production has fallen
off nearly 2,000, OOP tons for the first seven months
of the year and tidewater stocks have been all
but wiped out. b'pper lake stocks also are low.
Now, the storage period for anthracite is about
over. Thus, the shortage will have to be rnade
up at the exact time when, normally, the direct
movement from the mines to the consumer is
largest.
The bituminous situation also is exactly the
reverse of what it was last year. Then, the
retailer expected and got cheap coal. They stored
much. This year, the operators knew they were
going to lose tonnage and did not care to com-
Iiound the loss by losing money also on the coal
sold. Therefore they held for and got a good
figure. Buyers expected this situation to change
from day to day and delayed luiying. In the
west, particularly, not to exceed twenty-five per
cent of the normal amount of coal has gone into
stora.ge.
More coal than normal is going into export and
hence is subtracting from the volume available
for the interior use. .Mso, storage coal and coal
for current use must be shipped at the same time.
This is going to throw an extraordinary burden
upon both mines and railroads. The question is
whether they can respond satisfactorily. Recent
reports from the mining districts are not encour¬
aging. The mines have obtained no new miners
from Europe, but instead actually have lost work¬
ers. If they need at least 25,000 new men yearly
to get out their regular production and got none
Imt lost some, the mines are, at least, 25,000 min¬
ers short.
In addition, we are running into a period of
transportation difficulty. Railroad cars and en¬
gines have not been maintained in good order.
What is more, the railroads have not the money
to spend to put them in shape.
Thus, there is a real possibility of a coal short¬
age. Everything depends upon the weather. If
the weather is cold, there must be a coal short-
Particular attention must be called to the sit¬
uation in the northwest. Most of the docks had
quantities of coal left over. Some assumed that
this was nearly enough to carry them through
this year. Consequently they bought little. When
the people inland took no coal, the docks were
confirmed in their opinion. The action of the
northwest is natural enough. Still, it does not re¬
lieve the northwestern situation any. It does not
assure plenty of coal for a hard winter.
Chicago Market.
Technically the Market Is Strong, But
Actually Buying Is Still Below
Normal.
Office of The Hi..\c'k I)i.\mond,
Chu auo, .'\ugust 12.
The Chicago coal market is in one of the most
curious positions it has occupied in a number of
months. Technically every coal is strong to the
point of being buoyant. That is, the operators
liave done the uncommon thing this year and
have refused to load up their order books with
cheap coal ; the retailers and householders, being
accustomed to ridiculously low prices in summer,
have been holding off expecting every minute that
the market would break. Thus they delayed buy¬
ing in May, again in June, and again in July.
The result is a complete reversal of the situation
common early in August. Heretofore the opera¬
tors have entered that month with their order
!)onks full for lump coal sold at $1 or a little
better. This year they enter August with their
books clear of orders, but practically no coal in
th.e hands of the retailers or the consumers.
As one of the operators expressed it, about
the only domestic business that has been done this
summer has been the selling of coal to schools
and the public utilities companies. This means
that not much more than twenty-five per cent of
the normal amount of summer coal has been
moved. Naturally, with the storage movement
and the regular fall buying to be taken care of
in the next two and a half months, and with
transportation difficulties disturbing, the market
is exceptionally strong with the operators in com¬
mand of the situation.
The anthracite situation has not been changed
to the same extent as some of the others. An¬
thracite coal has not been subjected to any ex¬
traordinary price influence this summer.
The smokeless situation has not changed much
in the last week. Some differences, mainly among
the operators, over the question of policy, has
disturbed prices a little in Chicago on mine run.
The disturbance has had no effect outside of Chi¬
cago. On spot sales mine run is firm at $1.40.
Both on spot sales and on contract, lump and egg
is firm at circular price of $2.25. Prices up to
Thursda)' were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.4.5 $1.40
I.ump and egg . 4.30 2.25
The market on Somerset county coal is prac¬
tically unchanged. The operators are not loading
their books with cheap coal because they expect
higher jirices later. Prices up to Thursday were :
F. p. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
I.ump and egg . 3.75@3.95 1.70@1.'JO
Blocking coal has shown a little improvement
in the last week. Business is not up to normal
hecause the weather has been so wet that har¬
vesting has been delayed. There is very little
movement to the farmers now and this is cur¬
tailing the demand. However, retailers realize
that the harvest movement will have to start
soon and they are buying a little coal to be ready
for the demand when it comes. Prices up to
Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
l!4-inch lump . $3.15 $1.50
The Splint situation has improved a little, first,
because operators are more disposed to keep un¬
sold coal off the market and, second, because the
expected demand for harvest purposes is causing
retailers to buy a little heavier. Prices up to
Thursdav were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
Ij4inch lump . $3.05@3.15 $1.15@1.25
The eastern Kentucky situation is just about
as reported last week. That is, all kind of Ken¬
tucky coal is being offered at all kind of prices,
but the carefully prepared and well advertised
coals are having no difficulty to find a market at
around $1.00 a ton for lump and block com¬
bined. Prices up to Thursday were :
F. p. B. F. p. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.25@3.80 $1.35@1.90
Egg . 3.05@S.25 1.15@1.35
In Eranklin county the situation is peculiar.
The retailers expected that orders placed early
in August would carry the July circular. They
were disappointed and did not buy for a few
days. Mainly, however, they have been buying
more freely and the market is in consequence
fairly strong. However, the operators appreciate
that the wet weather has interfered with deliv¬
eries and out of sympathy with the retail situa¬
tion they have decided to continue the new cir¬
cular i>rice of $!.()() in effect during the month.
It would not be surprising, however, if the reg¬
ular circular price of $1.75 were to apply on and
after September 1st. The finer sizes have been
rather strong lately. The operators for a time
were selling this coal at rather low figures, but
lately have been insisting upon seventy cents as
the minimum on two-inch.
Prices up
to Thurs-
day were :
F. O. B.
F. O. B.
Franklin County —
Chicago.
Mines.
Lump .
$2.65
$1.60
Egg .
2.65
1.60
No. 1 nut . .
1.60
No. 2 ,nut .
2.45
1.40
Mine run .
2.15
1.10
2-inch screenings .
1.75
.70
Two prices have ruled in Williamson county.
The better grades and better known coals have
brought $!.()(), while on the lump and egg and
No. 1 washed other producers have been holding
for $1.50. Prices have been firm at these figures
throughout the week, with a fair amount of buy¬
ing. Tonnage in fact increases about every day.
Prices up to Thursday were :
Williamson County —
Lump .
Kge .
No. 1 washed .
No. 2 w.ished .
F. O. B.
Chicago.
$2.65
2.65
2.65
2.50
F. p. B.
Mines.
$1.60
1.60
1.60
1.45
Saline county operators have been in about the
same position as other mines in the southern part
of the state. That is, fifty per cent of capacity
of active mines is about the rule in that district.
In addition, some mines are not running at all.
However, the operators are letting market con¬
ditions and not the mine situation govern the
prices and as a consequence the market is firm
at prices quoted heretofore, the market up to
Thursday being :
Saline County —
Lump .
Mine run .
Screenings .
lJ4-inch lump. . .
F. O. B.
Chicago.
$2.55
2.15
1.7)
2.30
F. O. B.
Mines.
$1.50
1.10
.70
1.25
The demand for Springfield coal has been im¬
proving enough to warrant the suggestion that
in a few days there will be an advance in price
on the lump coal of about fifteen cents, bringing
the circular up to $1.05. Meanwhile the market is
quite strong at $1.50. Screenings were a trifle
easy, but have strengthened in the last week be¬
cause lump production has been small. Prices
up to Thursday were :
F. 0. B.
F. 0. B.
Springfield —
Chicago.
Mines.
Lump .
. $2.32
$1.50
Egg .
. 2.32
1.50
Nut .
1.35
Mine run .
. 1.87
1.05
Screenings .
. 1.47
.35
Clinton county coal is unchanged from last
week, namely, most of the coal is lieing consumed
in Indiana and very little coming to Chicago.
Prices up to Thursday were :
F. O. B. F. O. B.
Clinton- —
Domestic lump
Egg .
Nut .
Mine run . .
Screenings ....
Chicago.
Mines.
$2.27
$1.60
2.07
1.30
2.07
1.30
1.87
1.10
1.47
.70
Knox county operators have been running
mostly on steam business and as a consequence
the market for screenings and mine run coal has
been the one to which most attention has been
paid. The domestic business is picking up just
a little. In the Chicago market proper, screen¬
ings have had to meet the competition of other
fine coal and consequently have had to sell at
sixty to sixty-five cents, but in Indiana prices
have been decidedly better, ranging from seventy
to eighty cents, with some companies refusing to
sell below the latter figure. Prices up to Thurs¬
day were ;
F. O. B. F. p. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . 2.37 1.50
Mine run . 1.87 1.05
Screenings . 1.47 .60
There is a better demand for coke, but rather
than this influencing the price it has simply
enabled some of the operators to increase their
production. The ovens are now running eighty
to eighty-five per cent of capacity, whereas two
months ago they were doing no better than sixty
per cent. Prices in consequence are unchanged
with the exception that the crushed sizes of by¬
product coke are about ten cents above the fig¬
ures recently quoted. Prices up to Thursday
were :
F. O. B.
Coke — Chicago.
Connellsville . $4.76
By-product, foundry . 4.85(®5.10
By-product, egg and stove . 4.60@4.7n
By-product, nut . 4.60@4.70
Gas house . 3.75@3.90
No. 7]
THE BLACK DIAMOND
135
Pittsburgh Trade.
Big Tonnages Are Placed, But Small
Orders Are Needed — Still, Low Prices
Are Refused.
Office of The Bl.\ck Di.^mond,
1502 Oliver Building,
Pittsburgh, Pa., August 12.
There is a large amount of optimism in the
coal trade of Pittsburgh today, based on actual
conditions as they exist, and the vague possi¬
bilities of the future. And yet, careful ob¬
servers utter words of caution and predictions
as to the market’s course are hazarded with
reserve. Many of the optimists admit they are
sailing an uncharted sea, with unknown "trade
winds” and unprecedented weather conditions.
The big steel mills and the big coal pro¬
ducers report business as good and increas¬
ing, while the operators of smaller coal and
manufacturing plants are not nearly so well
satisfied with the situation or the outlook. The
plants, working largely on war munitions, are
taking near their normal supply of coal under
existing contracts, but the sewer pipe indus¬
tries, brick making, and other domestic in¬
dustrials are not taking more than fifty per
cent of their usual requirements. There is
little or no spot demand for coal among mis¬
cellaneous manufacturing plants.
The lake trade continues a puzzling feature.
Shipments are not increasing and little or no
new inquiry is developing. It is freely stated
by operators that much longer delay will place
consumers in a bad position later as reviving
industrial demand will make it impossible to
effect deliveries to the lakes and northwest
trade. The export factor will have to be
figured on more and more. All these circum¬
stances have a tendency to advance prices
above what the market calls for today and
producers show a determination to resist at¬
tempts shown by buyers to force the market
to a still lower level.
Offers of fifty cents and fifty-two and one-
half cents for Pittsburgh slack were turned
down by leading coal operators here this week,
and sixty cents does not look inviting, as there
is little accumulated slack of any grade at
mines or on wheels.
There seems to be snags developing in the
way of export trade in the shape of increasing
ocean freight rates, and where some large in¬
quiry was being made a week ago, by eastern
exporters, report today says the placing of or¬
ders is being delayed until more satisfactory
freight rates can be negotiated.
The general appearance of trade is very
quiet, no activity of note being noticeable at
plant or offices. The vacation season accounts
for many empty desks, and the splendid
condition of the golf links, with ideal weather
conditions, explains the vacancy of numerous
office chairs.
The market might be quoted as follows,
though it is hardly safe to hazard quotations
at all under existing circumstances:
Pittsburgh slack . .fit)
•Mine run . 1.0U@1.10
a screened . 1.2()@ 1.2.5
.')/4 screened . 1.3(l@1.35
Coke seems to be undergoing a somewhat
similar experience to that which coal has been
passing through, an element of uncertainty
effecting the market and causing a halt in the
upward trend that seemed to be in sight. Joli-
bing foundries have not been doing more than
fifty per cent of capacity, but prospects seem
to be brightening, and some are showing a dis¬
position to buy coke ahead, at least inquiry
would suggest that, and prices are holding well
at $2.40 to $2.00 with some asking $2.05.
Prompt foundry can be had at 2.10 to $2.40.
Report says that should the demand for steel
continue to increase the steel works’ ovens
will have to turn to the merchant ovens for
additional supply of furnace coke, but this
point has not yet developed; however, any
further increases in the steel business must
soon affect independent plants, and this will
create a demand for merchant coke that is not
now being felt to any extent, and help to main¬
tain the $1.75 to $2 quotation for which pro¬
ducers are standing pat.
The pig iron situation favors a hardening
of coke prices, for while the current sales have
not been large, consideralily increased ton¬
nages of lioth steel making and foundry grades
are said to be under negotiation in the various
producing centers east and west, and an ad¬
vance of twenty-five to fifty cents a ton for
this year’s delivery is generally being asked.
All told the strength of the coal and coke
market in this district has not weakened, and
might be said to have hardened. Buyers for
future delivery are lagging and sellers are more
firm. One large coal operator voiced the
opinion yesterday in conversation with the
writer that by the middle of September every¬
thing would be at normal and the labor situa¬
tion making it hard to meet demands in this
locality.
"Want” advertisements are appearing quite
frequently in the Pittsburgh papers for coal
miners for various parts of West Virginia and
for Kentucky mining regions. E.xport busi¬
ness in those localities is said to be increasing
very considerably.
Personal and News Items.
A. F. Syroth, of the Keystone Coal & Coke
Company, Pittsburgh office, is absent on a
vacation.
Mr. Harris, inspector for the Cleveland &
Western Coal Company, was a Pittsburgh visi¬
tor last week.
H. A. Andrews of the Pittsburgh and West
Moreland Coal Company has departed for a
summer vacation of some weeks’ duration.
J. H. Hillman, of J. H. Hillman & Sons, iron
brokers and coal experts, has gone to Beau¬
maris, Canada, to join the colony of Pittsburgh
bankers and iron and steel men.
H. R. Hyndman ,of the Washington Coal
Company, is recuperating at Algonquin Park.
John H. Jones, of the Pittsburgh-Buffalo
Company, is on a business trip to the lakes
and the northwest points.
Louisville Market.
Louisville, Ky., August 12. — (Special Corre¬
spondence.) — There is considerable evidence of
improving business in a number of lines in this
section, but as yet the coal trade has lagged be¬
hind and August business has not come up to
expectations entertained by shippers a month
ago. It is true that there is not a great deal of
steam coal either on demurrage or being sold at
cut-rate prices, but demand for the domestic
sizes continues phenomenally light, considering
the near approach of the fall season, and ship¬
pers are wondering if they will ever get any
higher prices for their block and egg sizes
during the balance of the year.
The best advised coal men seem sure that there
will be a very heavy demand for coal beginning
about the middle of September, and continuing
well into the winter. They figure that supplies
in the hands of dealers and consumers are un¬
doubtedly far lighter than during any previous
season, that the amount of coal required for the
growing population of the country, in view of the
continuous depletion of wood, will he consider¬
ably increased, and that the facilities, both of
producers and carriers, will he less than normal,
due to the long period of dull Imsiness we have
passed, or are passing through.
Coal men in this section have freely expressed
their desire that the Interstate Commerce Com¬
mission grant advances in rates to the western
roads, and were therefore glad to see that the
increase requested on bituminous coal was held
to be justified. Coal men in general are
anxious to see the railroads get their share of
such prosperity as there is to pass around. When¬
ever industrial conditions are inactive the great
importance of railroads as coal consumers be¬
comes more manifest to the coal trade.
Conditions with the retailers in Louisville are
somewhat more promising as to outlooks, though
current demand is not up to normal, but country
dealers are still extremely backward and are
wholly occupied with their splendid crops, to
the detriment of coal deliveries. Road building,
which is epidemic all over Kentucky at the pres¬
ent time, is also interfering to some extent with
the hauling and storing of domestic coal. The
farmers are almost altogether unsupplied with
any future stock of coal and when the first cool
weather comes this btiying should start with a
rush.
There has been a continuance of labor trouble
in southeastern Kentucky, due to failure of sev¬
eral mining companies to restore wages that were
cut some months ago, and due to refusal by other
mining companies to recognize the union, partic¬
ularly in the Harlan county field. Producers
are confident, however, that there will be no
serious disturbance or shut-down, as the national
organization does not seem disposed to come to
the assistance of the Kentucky miners at the
present time.
Toledo Market.
Toleix), Ohio, August 11. — The coal situation
remains about the same as it has been and there
will probably be no further general improvement
noticed until the farmers have got their crops in
and are ready to take their winter supply of coal.
The harvest was extremely late in this section
this season owing to the heavy rains and this has
of course held the coal buying back, as farmers
would hardly stop now to haul gold, much less
coal. It is predicted by those in a position to
know that within ten days there will be a notice-
alile improvement. The farmers will he in good
shape by that time and it is believed the general
movement, including hard coal, will be much
lietter by that time. There are some more in¬
quiries than formerly and some contracts are now
being made. The commissioners are now in the
market for nearly ]0,()0() tons of coal and bids are
being called for on Pittsburgh No. 8 and West
Virginia products.
There has been a decided and unexplained
weakening in the Pocahontas prepared sizes with¬
in the past week or so, although the mine run is
holding very firm. Prices are quoted as follows :
F. O. B. F. O. B.
Smokeless — ■ Toledo Mines
I ump an.l egg . $3.70 $2.25
Mine run . 2.85 1.4(1
The demand for Hocking is not specially strong
although there has been a fair call for threshing
coal recently. Farmers will be buying more heav¬
ily later on than at present, however. Prices are
holding as quoted :
F. O. B.
F. O. B
Hocking —
Toledo
Mines
3-inch lump .
$1.50
L4-inch lump .
. 2.40
1.40
^•inch lump .
. 2.3.)
1.35
Egg .
. 2.25
1 .2.5
N ut .
1.15
Mine run .
1.10
Practically no movement
of Massillon and
prices unchanged :
F. 0. B.
F. O. B.
Massillon—
Toledo
Mines
Lump .
. $3.25
$2.50
Washed nut .
. 3.25
2.50
The demand for Pomeroy
is light and
prices
are the same :
F. 0. B.
F. O. B.
Pomeroy —
Toledo
Mines
Domestic .
. $2.60
$1.60
Egg and nut .
1.35
The West Virginia product continues to move
about as it has been for some time past. The
lake movement, while not heavy, has not weak¬
ened much. Prices have been very low and re¬
main the same :
Kanawha Gas —
44-inch lump .
1.05
Mine run .
.96
Fairmont —
i;4-inch lump .
. 2.30
1.05
44-inch lump .
.95
Mine run .
.85
F. O. B.
F. O. B.
Kanawha Splint —
Toledo
Mines
4-inch lump .
. $2.75
$1.50
2-inch lump .
1.40
44-inch lump .
1.15
Mine run .
1.00
Few of the Pittsburgh No. 8 mines are now in
oiieration and the movement of this coal in this
market is extremely light, although an occasional
contract is signed or fair sized order placed.
Pittsburgh No. 8 —
lJ4-inch lump . 2.40 1.40
^-inch lump . 2.20 1.20
M^ne ruL . 2.10 1.10
Youghiogheny coal is used very slightly here
and remains just as it has been for weeks past.
Youghiogheny —
Mine run . 2.45 1.20
f^-inch steam lump . 2.65 1.30
Clossburg Smithing —
Prepared size . 3.20 1.75
Lilly smithing^ prepared size . 3.20 1.75
Kentucky seems to be holding its own quite
well and prospects are favorable.
F. O. B. F. q. B.
Kentucky — Toledo Mines
4-i)ich lump . $2.90 $1.C5
P^gg . 2.50 1.25
Nut, pea and slack . open open
Cambridge movement
changed.
Cambridge —
Mine run .
^-inch lump .
Ij4-inch lump .
is light and prices iin-
F. O. B. F. O. B.
Toledo Mines
. $2.10 $1.10
. 2.20 1.20
. 2.40 1.40
Cannel continues with about the same degree
of activity as formerly. Prices follow:
Cannel—
Kentucky Cannel lump . $4.60
Pennsylvania Cannel, egg . 3.60
Pennsylvania Cannel, lump . 4.20
Ohio Cannel . 3.86
$2,75
2.15
2.75
3.00
136
THE BLACK DIAMOND
Cincinnati Trade.
Bigger Export Demand and Rush Orders
From Retailers are Improving the
Market’s Tone.
Cincinnati, Ohio, August 12. — Conflicting
ideas are expressed this week by many opera¬
tors in this market, but in a general way the
sentiment prevails that the nightmare of the trade
here is about over. The nightmare has been the
jobber who has seen only the ten cents commis¬
sion he is getting from handling the output of
mines.
Splint is improving, although the improvement
is slow. Almost everybody believes that it will
be permanent. Considerable exportation to South
.\merica, especially Brazil and Argentina, is re¬
lieving the market. One of the results of the
large and continuous demand at seaboard and in
the east, especially in New England, is the ten¬
dency of prices to hold.
Another bright light in the horizon is the fact
that many dealers who have given orders, say for
shipment about August 25, have been writing,
telegraphing and telephoning to the operators to
hasten the order, or to ship immediately, or to
restore certain orders cancelled last week. This
indicates that farmers and other consumers are
beginning to come in for supplies. Threshing is
on and but for the rainy weather there would
now be a big demand for small lots.
One peculiar matter is showing up in the
splint field, and that is that some of the jobbers
and wholesalers have been so occupied with their
run of mine shipments, lake and seaward, that
they have neglected their nut and slack contracts
and have run behind with some of them.
Coke business is picking up, not rapidly or
lucratively, but moderately and in a paying man¬
ner. Many of the coke men will not take orders
further than the last quarter of the year and
many of them are up to capacity for the year.
A few orders have been placed for the first quar¬
ter of 1916 but they have been accepted with fear
and trembling and for speculative purposes.
Quotations on good four-inch splint lump this
week shows firmer price of $1.50 and several
orders have been taken at $1.60, with one or two
heard of at $1.70, the latter, however, being
smaller than the others. Operators see but ninety
cents for run of mine this week because of slack
demand for the larger sizes, or some of them,
and as a result two-inch lump is now easily
quoted at $1.35 on the average. Nut and slack
of inferior grades are still burdening the market
at sixty-five cents, and in some cases lower, but
the better steam grades are in better demand,
as stated.
Smokeless grades are in smooth seas and some
of the European governments are sending repre¬
sentatives to the ground to talk up contracts for
their governments. Italy has some options on
New River products and perhaps some Pocahon¬
tas outputs, but the latter have been sold to
capacity, reserving domestic products for the
better local prices.
Cincinnati Trade News.
W. INI. Puckett, vice-president of the Cabin
Creek Consolidated Coal Company, was in the
city this week in consultation with C. R. Mori-
arty. western sales agent of the company, with
headquarters in this city.
Among the visitors in the coal district this
week was E. J. Baxter, manager of the Welch
Coal & Coke Company, Welch, W. Va. Also a
noted visitor was Byron Smith, secretary of the
Foster Lumber & Coal Company of Valparaiso,
Tnd.
Frank S. Easley, formerly manager of the Po¬
cahontas Coal Company at Bluefield, W. Va., has
resigned his position with that company to ac¬
cept a similar position with the Bluefield Coal &
Coke Company of Bluefield. Mr. Easley is well
known in coal circles of this city.
Colonel S. W. Patterson, formerly on the staff
of Governor Hatfield of West Virginia, president
of the Bottom Creek Coal & Coke Company of
Vivian, W. Va., and also president of the Syca¬
more Coal Company of Cinderella, W. Va., was a
visitor in the city this week, spending most of his
time with F. B. Raines of the Castner, Curran &
Bullitt Company.
The harbor towboat Fulton, which has just
been raised from the bottom of the river, is be¬
ing temporarily repaired so she will be able to
float to the Queen City Coal Company’s marine
ways for caulking and fixing, so she can be
towed to Pittsburgh to be rebuilt. The boat
careened in the middle of the river during a
cyclone, June 7th.
Captain Charles J. Menges, formerly harbor
master for the Monongahela River Consolidated
Coal & Coke Company in this city, but later har¬
bor master for the company and the Queen City
Coal Company of this city at New Orleans, was
a visitor in the city this week on a short vacation
visit with Mrs. Menges to their old home here.
Captain Menges has a host of friends all along
the river.
Twin Cities Trade.
Minneapous and St. Paul, August 12. — (Spe¬
cial Correspondence.) — Northwestern coal men
are more cheerful over the prospects than they
have been at any time this year. The tremendous
crop which is being harvested and which will
shortly be threshed is the source of this optimism,
and indications emphatically point to a much
better business situation. While optimism pre¬
vails it is not being realized upon to any great
extent. Dealers recognize that if the harvest is
as bountiful as expected their business will be
very large, but they are not prepared yet to pur¬
chase much coal for threshing purposes. As a
matter of fact, the volume of present business
with most all the factors in the trade, wholesale,
as well as retail, is less than a year ago at this
time. There is a hesitancy in taking on business
obligations that will not disappear until the de¬
mand from consumers of coal is being realized.
Possibly the foreign war has something to do
with this, but dealers who placed loans with
banks a year ago and were obliged to pay high
interest rates or could not renew them later, are
not anxious to be placed in the same position
again.
As a consequence of the conservatism that pre¬
vails, the coal business thirty or sixty days from
now may be very good. Undoubtedly it will re¬
quire an immense number of cars to move the
crop. North Dakota farmers who are heavily
mortgaged on account of two bad crops in pre¬
vious years in succession, will realize on their
crop as soon as possible to meet these obligations,
and a very large amount of grain may be thrown
onto the market at one time, requiring all the
available resources of the railroads to move the
crop. The coal movement and merchandise ship¬
ping to date has been less than a year ago.
Transportation facilities are almost certain to
come under a tremendous strain, and for thirty
or si.xty days, while these conditions continue,
undoubtedly the demand for fuel will be keen.
On the other hand, this will not constitute the
entire winter’s business. The real market condi¬
tions after the first of December will depend
upon the climate. Dealers are likely to follow a
hand to mouth buying policy until about that
date, owing to the fact that for several years
they have accumulated stocks of coal which could
be replaced later in the season at less cost than
the original purchases.
Current car lot quotations on all grades of coal
sold in this market are as follows :
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
Grate .
Egg .
and
Superior
. $6.60
6.85
6.85
and
St. Paul
$7.80
8.05
8.05
Nut .
7.10
8.30
. 5.50
6.70
Buckwheat .
4.00
5.20
During August a discount of ten cents
per ton is
allowed on all anthracite except
which prices are net.
pea and
buckwheat.
BITUMINOUS
Splint, screened lump and stove...
. $3.40
$4.36
Splint, dock run .
3.10
4.06
Hocking, screened lump and stove. .
3.40
4.36
Hocking, dock run .
3.00
3.96
Youghiogheny, gas, lump and stove.
3.40
4.36
Youghiogheny, gas, dock run .
3.10
4.06
Pittsburgh vein, lump .
3.40
4.36
Pittsburgh vein, dock run .
3.00
3.96
Pocahontas, screened lump or egg. . . ,
4.75
5.71
Pocahontas screened lump and egg
mixed . .
4.50
6.46
Pocahontas, mine-run .
3.25
4.21
Cannel, lump .
5.25
6.21
Smithing, bulk .
4.25
5.21
Smithing, in lOO-lb. sacks .
6.00
6.96
Briquets, anthracite .
5.00
5.96
Briquets, smokeless .
5.00
5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows ;
Southern Illinois chinks . $1.50(3)1.60 $3.70(®3.80
Southern Illinois egg . 1.50@1.60 3.70(a>3.80
Southern Illinois No. 1 nut . 1.50@1.G0 3.70(3)3.80
Southern Illinois No. 2 nut . 1.25(31.40 3.45@3.60
Southern Illinois No. 3 nut . 1.20@1.25 3.40@3.45
.Southern Illinois run of mine... 1.15@1.25 3.35@3.45
Southern Illinois 2-in. screenings .70(3 .75 2.95 @3.00
Southern Illinois coal includes Franklin county,
Harrisburg and Williamson county.
[August 14
Duluth Trade.
Duluth, Minn., August 1%.— (Special Corre¬
spondence.) — While conditions are brisking up in
the coal trade, they are far from normal. The
fact that not a great deal of coal — compara¬
tively _ speaking— is being brought up from the
east, is actually no hardship here, for the de¬
mand from the northwest, fed from the Duluth
docks, as a usual thing, is of no such propor¬
tions that the shortage of eastern supply for this
point cuts much of a figure.
Coal men say that there is a better inquiry for
coal, starting with about two weeks ago, but that
it is nothing like that of former years. The fact
that threshing demand looms up ahead is what is
bringing the inquiry and which is expe’eted to
bring more. However, as is quite well known,
Illinois coal, placed in northwestern towns on a
much cheaper h. O. B. basis than eastern coal,
cuts into the demand from here, and the further
fact that lignite is being more generally used,
even though admitted of a inestimately poorer
quality, is another factor in the slowness of the
trade at this point. However, hope is held out
that the filict that the crops this year are very
much larger than in former years and that con¬
sequently more threshing will have to be done,
will help overcome militating influences.
As to coal shipments from this point to points
in the northwest, figures for July are not yet
available, but those up to the end of June show
pretty well the general trend. It is a fact that
more boats have been bringing up coal since that
time, but the increase in number is not so very
great oyer a year ago. However, the figures of
the weighing bureau show the following ship¬
ments, in car circulations, this year up to the
end of June:
Duluth. Superior. Total.
January . 6,259 18,737 24,996
February . 5,476 14,803 20,279
March . 5,113 11,747 16,860
April . 4,005 8,624 12,629
May . 4,245 7,156 11,401
June . 4,308 7,160 11,468
Totals . 29,406 68,227 97,633
The figures up to the end of June of each of
the past three years, compared with the current
year, 1912 being the banner year in shipments
from this point, indicate pretty well the falling
off that has been taking place :
Duluth. Superior. Total.
1912 75,868 200,519 276,387
1913 80,872 176,411 257,283
1914 31,384 74,547 105,931
1915 29,406 68,227 97,633
The government figures of coal receipts here
are issued only every two months, for there are
always delinquents in making reports, so the
latest figures that can be obtained as yet con¬
cerning receipts here are up to the end of May.
As has been said, a few more boats have been
carrying coal, but coal cargoes are notoriously
short, and that fact is furnishing one of the prob¬
lems of Great Lakes vessel owners at this time.
Receipts up to the end of May, compared with
the same period last year, were as follows :
Tons— 1915. 1914.
Soft . 781,789 1,341,233
Hard . 275,800 131,721
Totals . 1,057,589 1,472,954
The following markets prevail :
Anthracite — Duluth
Egg . $6.85
Stove . 6.85
Nut . 7.10
Pea . 5.55
In bituminous:
Y oughiogheny —
Screened lump . 3.40
Screened nut or stove . 3.40
Dock run . 3.10
Screenings . 2.40
Hocking —
Screened lump . 3.40
Screened nut or stove . 3.40
Dock run . 3.05
Screenings . 2.25
Splint — ■
West Virginia lump . 3.40
West Virginia stove or nut . 3.40
West Virginia dock run . 3.10
West Virginia screenings . 2.40
Pocahontas Smokeless —
Lump, egg or nut . 4.75
Lump and egg, mixed . 4.50
Mine run . 3.25
Screenings . 2.75
Cannel —
Screened lump . 5.25
Smithing —
Pittsburgh selected . 4.25
Georges Creek . 4.25
C. E. Tweed, city agent of the Pittsburgh Coal
Company, spent the first week of this month in
Minneapolis, taking part in the state golf tourna¬
ment at the Minikahda links. He was a member
of the Duluth team.
No. 7]
THE BLACK DIAMOND
137
Indianapolis Trade.
Indianapolis, Ind., August 12. — (Special Cor¬
respondence.) — A slight improvement is apparent
in the demand for Indiana coal. It isn’t sufficient
to cause a bulge in the prices, but it helps some.
Indiana operators with headquarters here say
that the demand for domestic is picking up nice¬
ly. They say that the retailers are beginning to
bu' domestic for the early fall trade. The re¬
tailers have not been very generous with their
orders lately. They are buying now for the
school houses and the flats where coal is being
put in for the winter. There is still a demand
for domestic coal for wheat threshing purposes,
but that season is drawing to a close. The de¬
mand for steam coal is better than it was. One
operator says that he sold 1,000 tons more during
the last half of July than during the first half
which he regards as a good omen.
There is an increased demana for steam coal
in all of the iron and steel industries of the state.
Operators here with contracts for coal with mal¬
leable iron and steel concerns in the Chicago dis¬
trict say that their trade in steam coal is picking
up and that it will be normal within a short time.
However, the demand for steam coal from those
sources are better than they are elsewhere.
Screenings are a little off. No. 4 screenings
are selling from seventy-five to eighty cents a ton
at the mines. Nos. 5 and 6 screenings are run¬
ning from sixty-five to seventy cents at the
mines, with the demand only fair. No. 4
domestic lump is selling at $1..50 at the mines.
Nos. 5 and 6 domestic lump is about ten cents
lower than No. 4. The tonnage for August
promises to be quite a fair margin above that of
July.
The following prices are being quoted by the
Indiana wholesalers :
F. O. B.
F. 0. B.
Indiana —
Mines.
Indianapolis.
No. 4 mine run . .
,$1.10@1.20
$1.60@1.80
Nos. .") and 6 mine run .
1.00@1.05
1.50@1.55
No. 4, 154-inch steam lump .
1.25@1.35
1.75@1.85
Nos. 5 and 6, I'l-inch steam
lump .
, 1.15@1.25
1.65@1.75
Nut .
, 1.20@1.30
1.70@1.80
Egg .
, 1.30@1.40
1.80@1.90
No. 4 domestic lump .
1.50
2.00
Nos. 5 and 6 domes.tic lump .
1.40
1.90
No. 4 screenings .
.75® .80
1.25@1.30
Nos. 5 and 6 screenings .
.60@ .70
1.10@1.20
No. 1 washed coal .
1.75
2.25
No. 2 washed coal .
1.G5
2.15
Brazil block domestic .
2.00
■ 2.50
Southern Indiana Field —
Domestic lump .
1.40
Mine run .
1.00@1.05
Screenings .
.60@ .70
Indianapolis retail prices are: Linton No. 4
forked, $3 per ton; Indiana lump, forked, $2.75;
Indiana lump and egg, shoveled, $2.50; Kanawha
lump, forked, $4.20 ; Ohio Hocking lump, forked,
$4.35 ; Ohio Hocking washed egg, $4.15 ; Ken¬
tucky lump, $4.10; Ohio Jackson lump, forked,
$5.50 ; Blossburg smelting, $5 ; Cannel lump,
$5.50; Pocahontas forked lump, $6; Pocahontas
shoveled lump, $5.50 ; Pocahontas mine run, $5 ;
Pocahontas nut and slack, $4 ; anthracite chest¬
nut, $7.50; anthracite stove and egg, $7.75; an¬
thracite grate, ,‘i;7.25; Connellsville coke, $G; In¬
dianapolis by-product coke, all sizes, $5.50.
Extra delivery charge : Bags, fifty cents a ton
extra, ground floor or dumped in cellar. Bags,
seventy-five cents a ton extra, carried into cellar.
Charge for chute or wheelbarrow, twenty-five
cents a ton. Coke bags, sixty cents ; bags in cel¬
lar, eighty cents.
Denver Trade.
Denver, August 12. — (Special Correspond¬
ence.) — Continued dullness rules the market this
week and there seems to be little encouragement
for the immediate future. The lignite situation
is particularly quiet, the whole northern district
not averaging two days a week actual running
time. Lignite operators are expecting a little
threshing business within the next three weeks
from Colorado points, and Texas threshing or¬
ders now being received are relieving the stag¬
nation.
Trinidad mines are all busy, especially the Col¬
orado Fuel & Iron mines. There is a heavy pro¬
duction at the Pueblo steel mills, nearly every
department making record breaking outputs.
Routt county and Walsenburg are making a
fair tonnage, the former leading with about eighty
per cent of normal tonnage. Dull business is
said to be responsible for closing down two mines
in the latter district a few days ago.
As an indifference of country operators, one
of the largest operating concerns in the state is
understood to have called in their entire force of
traveling salesmen this week. There is a decided
slump in the volume of storage business, con¬
trary to general expectations. It is said that
dealers are anticipating on rock bottom prices
this winter — probably an advance of twenty-five
cents over August storage quotations, and that
they are willing to take a chance of being able
to secure coal at those prices than to tie up their
money now.
There is neither a scarcity or surplus of lignite
slack, but bituminous is very plentiful. As a
consequence there has been considerable price
cutting, Denver prices ranging around thirty to
forty cents. This same price cutting has also
affected, to a less extent, lignite coal, but the
following prices, f. o. b. mines, are still ruling:
For Denver delivery, lump, $2.35 to $2.65 ; mine
run, $1.50 to $1.65; slack, $1.05 to $1.25. Points
outside of Denver, lump, $2.50 ; mine run, $1.55
to $1.65; slack, $1.05.
Canon City District — Lump
For shipment May and June . $2.50
For shipment July and August . 2.75
Add 25 cents to above prices for washed nut.
Walsenburg District —
For shipment May and June . 2.50
For shipment July and August . 2.75
Washed nut 25 cents per ton additional.
Chestnut, $1.25 for entire season.
Trinidad District —
For shipment May and June . 2.00
For shipment July and August . 2.00
Routt County District —
For shipment May and June . 2.60
For shipment July and August . 2.75
Western Slope District —
For shipment May and June . 2.25
For shipment July and August . 2.50
From Baldwin, shipments for points east of
are 75 cents per ton less than Walsenburg prices.
Nut
$2.00
2.25
2.00
2.25
1.71
1.71
2.01
2.2i
Denvc!
Detroit Trade.
Detroit, Mich., August 12. — (Special Corre¬
spondence.) — Though developments of the week
appear to have brought about no change of spe¬
cial importance in conditions affecting the coal
trade in Detroit, the situation remains rather
more encouraging than otherwise due to the
continuance of the booking of small orders which
in the aggregate amount to considerable tonnage.
While shippers seem disinclined to regard this
feature as an indication of larger activity they
express the belief that it portends more substan¬
tial improvement later, if only the mines will re¬
frain from flooding the market with consign¬
ment stock for a period long enough for the con¬
sumers to awaken to a realization that coal at
cut prices cannot always be obtainable.
The quantity of coal now on tracks and near¬
ing forced sale is described as being far below
the amount of consignment stock on hand a few
weeks ago and reports of sacrifice sales are more
infrequent. The influence of the consignment
stock is not, however, wholly eliminated as a
factor in market conditions, even though its po¬
tentiality is reduced.
There is a fairly active demand for all steam
coal, but little business seems to be done in egg
sizes. The market for domestic coal continues
sluggish, while anthracite appears not to be at¬
tracting the attention that it should and orders
are not of large volume.
Shippers who, in previous seasons have sent
large quantities of coal over the lake route in
August, are holding back their stock this year,
because of lack of room on docks at the head of
the lakes. The reduction in shipments is shown
by the statistical report of the St. Mary’s canals
for the month of July.
Shipments of soft coal carried through the
canals aggregated 1,759,178 tons, against 1,868,150
tons in July last year, a decrease of 108,972 tons.
In July, 1913, the movement of soft coal was
2,494,790 tons or 1,735,692 tons more than last
month. Hard coal shipments were 315,374 tons,
compared with 431,193 a year ago, a reduction
of 115,819 tons. In July, 1913, the hard coal
shipments made a total of 421,526 tons.
Prices in the local market on mine shipment
orders are as follows :
F.O. B.
F. O. B.
West Virginia Cias —
Mines.
Detroit.
Three-quarter lump .
. . . .$0.95@1.00
$2.35®2.40
Mine run .
_ .80
2.20
Slack .
1.95
West Virginia Splint —
Four-inch lump .
_ 1.35
2.75
Two-inch lump .
_ 1.15
2.55
Three-quarter .
_ 1.10
2.50
Mine run .
_ .85
2.25
Nut, pea and slack .
1.95®3.05
Smokeless —
T.ump and egg .
_ 2.25
3.85
Nut .
_ 1.75
3.35
Slack . . .
Open
Mine run .
_ 1.25
2.85
Kentucky Splint—
I.ump .
_ 1.30
2.70
Egg .
_ 1.10
2.50
Nut, pea and slack .
Open
Fairmount —
Three-quarter steam lump. . . .
. 85® .95
2.25®2.35
Mine run .
. 70® .80
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
_ 1.50
2.65
Shaker egg and nut .
- 1.15
2.30
Domestic lump .
_ 1.35
2.50
Ihree-quarter lump .
_ 1.25@1.30
2.40®2.45
Mine run .
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Ihree-quarter lump .
- 1.15
2.30
Mine run .
- 1.05
2.20
Slack .
Open
Jackson Flill —
Domestic lump .
.... 2.50
3.65
Cambridge —
Three-quarter lump. . . .
- 1.20
2.35
Mine run .
- 1.10
2.25
Pomeroy —
Two and three-inch lump .
_ 1.60
2.75
I'-Sg .
- 1.35
2.50
Slack .
Open
St. Louis Trade.
St. Louis, Mo., August 11, (Special Cor¬
respondence.) — Business this week has been quite
brisk, owing to the fact that the first of the month
everyone does not like to buy very heavy and
waits until the 10th of the month. Prices# have
advanced from five to ten cents per ton on all
grades of coal. This is of course due partly on
account of the screening market being a little
weak and the price must be gotten out of the
other sizes.
Of course, with fall approaching and manufac¬
turing plants starting up, there has been quite a
demand for standard coal in the city. Also, a
number of plants, realizing that prices will re¬
main about the same from now on, are contract¬
ing for their requirements up until April 1st and
some have contracted up for one year.
Country business as a whole has picked up
quite a bit and a fairly good tonnage has been
received. Prices are being maintained especially
good in the country and one is able to realize
a fair margin of profit.
Anthracite is also moving very good now that
the price is fixed and nearly all the dealers in
St. Louis raised their circular thirty-five cents
per ton on .August 1st. The country business on
anthracite is fairly good as dealers are now be¬
ginning to take the coal they ordered earlier.
F. O. B. F. O. B.
Standard — Mines St. Louis
6-inch lump . .' . . $1.20 $1.77;4
2-inch lump . 1.10 1.G7J4
Nut . 1.00 1.57}4
Mine run . 1.00 1.57J4
Screenings . 35 1.4254
Staunton or Mt. Olive —
6-inch lump . 1.30 1.8754
2-inch lump . 1.20 1.7754
Franklin County —
6-inch lump . 1.35 2.0754
6x3 egg . 1.35 2.0754
3x2 nut . 1.35 2.0754
Williamson County —
6-inch lump . 1.15 1.8754
6x3 egg . 1.15 1.8754
3x2 nut . 1.10 1.8254
Screenings . 90 1.6254
Smokeless —
Lump or egg . 1.60 4.10
Mine run . 1.25 3.75
Smithing coal . 1.75 4.25
Coke —
Gas house lump or egg . 4.00
By-Produce, all sizes . 4.50
Anthracite —
Chestnut . 7.05
Stove or egg . 6.80
Grate . 6.55
The prices on Illinois soft coal f. o. b. East St. Louis,
Madison, Venice or Granite City, Ill., are 2 5 54 cents less
per ton than the above named prices to St. Louis, Mo.
Omaha Trade.
Omaha, Neb., August 12. — (Special Corre¬
spondence.) — few days of sunshine lias had a
tendency to create a better feeling in all trades,
resulting in a tendency on the part of buyers to
place orders.
Threshing has started in some localities; the
wheat, however, varies in quality, some of it
starting to sprout. Corn as a general proposi¬
tion is growing rapidly and with a couple of
weeks more of hot weather business conditions
will become normal.
The market is firm, refused and consignment
coal being pretty well
cleaned up.
The following prices prevail :
Southern Kansas —
Mines.
Omaha.
Nut .
. $1.85
$3.20
Slack .
. 1.35
2.70
Franklin County —
Lump .
. I..t5®1.60
3.75®4.00
Egg .
. 1.45@1.60
3.75@4.00
Nut .
. 1.45®1.60
3.75®4.00
Williamson County —
I.ump .
8.65®3.75
Egg .
. 1.25®1.35
3.65@3.75
Rock Springs —
I.ump .
. 2.15
5.85
Nut .
. 1.60
6.35
Arkansas Anthracite —
Lump .
. 3.70
6.60
Broken sizes .
. 3.95
6.85
138
THE T5LA( K DIAMOND
[August 14
New York Trade.
Anthracite Production Still Low — Bit¬
uminous Improvement More
Noticeable.
Office of The Black Diamond,
New York, August 12.
So far this mouth no improvement is to
be found in the anthracite trade. Most of the
wholesale houses report business just as dull
as it was in July, and they see very little
prospect of improvement before early in Sep¬
tember. Mines are working about half time,
which means that less than .'l.OOO.OOO tons jier
month is being produced. It should be borne
in mind that when it is announced that opera¬
tors are doing short time mining, that it is
not to be taken for granted that they will
in three days per week mine only fifty per
cent of what is considered capacity. As is
shown by the table of shipments of anthra-
city for July, appearing elsewhere in this is¬
sue, 4,924,205 tons of anthracite coal were
shipped during the month when no few opera¬
tions worked much better than three days per
week. The banner month in the anthracite in¬
dustry has shown production around 0, 000, 000
tons. This does not mean that the mines can¬
not produce more than 6,000,000 tons a month,
but does mean that it was never found pos¬
sible to have labor, car supply and other
things upon which production is contingent,
harmonize so closely that maximum capacity
could be reached. For instance, if the trade
are plentifully supplied with orders so that
they could run the mines every day, it is
usually found impossible to secure the co¬
operation of the miners to work the full six
days or to obtain an adequate car supply.
As above stated, shipments for July were
4,924,205 tons, as against 5,291,857 tons in
July, 1914, a decrease of 457,652. From Jan¬
uary 1st to July 21st, shipments were 26,529,-
509 tons, as compared with 28,327,646 tons for
the same period of 1914, a decrease of 1,808,137
tons. This means that we have now but four
and a half months remaining of the jiresent
calendar year with a shortage of anthracite
approximately 2,000,000 tons to be made up.
This would augur that the anthracite trade
will have to be very active from .September
1st on, unless many consumers go without
coal during the coming winter.
The N’ew England trade is inactive, as is
the tidewater trade in all directions. There is
a fair volume of coal going westward for lake
shipment, but not as heavy as is believed the
western needs require. Shipments to the mari¬
time provinces have also eased off, and trade
in all directions is slow.
Buyers who are looking for concessions on
egg and chestnut coal find that these con¬
cessions are not as marked as individuals
were giving earlier in the coal year. Indi¬
viduals have been practicing the restriction
policy more closely during the past month
than heretofore, and consequently not so
much unsold coal is pressing for sale as was
formerly the case.
In the steam sizes, there is a shortage of
good grades of both rice and barley, and
buyers are now looking for these coals where
formerly they were pressing for buyers.
Quotations at the upper ports range from
$2.50 to $2.80 for No. 1 buckwheat; $2.05 to
$2.30 for No. 2, and $1.75 to $1.80 for No. 2.
Quotation on pea is from $2 to $2.25. At the
lower ports, No. 1 buckwheat is quoted at
$2.25. No. 2 at $1.80 to $2.15, and barley from
$1.50 to $1.75.
The Bituminous Situation.
The bituminous trade is improvi'.ig in spots.
Most of the improvement is to be found in
the better contract demand, many of the large
consumers calling for larger shipments. In
the spot trade, the demand is still restricted,
and shippers of unsold coal at tidewater, of
which there are quite a few at this time, do
not find a ready sale for their surplus coal at
satisfactory prices. In the tidewater trade,
the export markets continue to be the dom¬
inating feature. There is considerable more
inquiry this week, due no doubt to the re¬
striction that England is placing now on ex¬
ports, and some good business is said to be
at the point of closing. Most of the large
export shippers have good orders now un¬
filled that will mean heavy shipments through¬
out this month and well along into the fall.
Added to this, a good many purchasers of
cargo lots coming to hand from day lo day.
Also, the bunker business is improving, at
the lower ports especially, and this will grow
as the grain and cotton season advances.
In the central I’ennsylvania fields, opera¬
tions are running at about fifty to sixty per
cent cajiacity. Labor is growing scarce in
nearly all sections, while some fear is being
felt as to car supply. Most of the trade are
optimistic, and lielieve that September will
see some important development in the bitumi¬
nous industry that will bring about much
better prices than are prevailing at present.
Already there is some talk about labor trou¬
bles, and it has been reported that some of the
big railway lines will stock coal very heavily
this fall and winter in anticipation of the sus¬
pension next .spring. At the moment large
consumers do not appear to be much con¬
cerned about strike talk, but it is expected
that this will have its effect later on.
At the New York harbor ports there Is not
the accumulation of unsold coal as was the
case during June and July, but the market
is still oversupplied, and prices are just about
easy at former quotations.
The Vessel Situation.
There is no appreciable change in the coast¬
wise vessel situation. Boats seem to be ample
for present requirements. The weather indi¬
cations have been good for the past week and
prompt schedules are being made.
We quote current rates on freight as fol¬
lows :
From Hampton Roads to Boston, seventy-
five to eighty-five cents; to the Sound, seventy
to eighty cents.
From New York rates to New Haven are
thirty cents. New London, forty cents, and
Providence and New Bedford, fifty cents; to
Boston, fifty-five to seventy cents; Portsmouth
and Portland, fifty-five to seventy cents; to
Bangor, seventy cents. Harbor rates are from
eighteen to twenty cents.
Prices on gross tons of bituminous coals
are :
F. 0. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
. $2.85
$1.30
Medium grades .
. 2.60
1.10
Ordinary .
. 2.55
1.00
Cambria County —
Best Miller vein .
. 3.00
1.40
Medium grades .
. 2.55
1.1 f)
Cheaper grades .
. 2. GO
1.05
Clearfield County —
Best grade .
1.35
Ordinary grades .
. 2.50
1.00
Indiana County —
Best grade .
1.25
Medium grade .
. 2.50
.95
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
. 2.40
.75
Best gas, 54 -inch lump .
Best grade, run of mine .
1.10
. 2.65
.90
Gas slack .
.5.’)@ .70
New York Trade Briefs.
D. W. Kuhn, of the Pittsburgh-Westmore-
land Coal Company at Pittsburgh, was in New
York on Tuesday.
C. L. Smith, of the sales force of Whitney
& Kemmerer, No. 143 Liberty street, is now
away on his vacation.
C. Law Watkins, president of the Watkins
Coal Company, is visiting the mines in cen¬
tral Pennsylvania this week.
W. B. McQueen, of the Alden Coal Mining
Company, No. 1 Broadway, took in several
New England points this week.
Lucien Hill, New York manager for the
Merchants Coal Company of Pennsylvania, has
taken a residence at Short Hills, N. J.
J. A. Hill, president of the Knickerbocker
Fuel Company, No. 1 Broadway, leaves on
Monday for Maine for a brief vacation.
O. H. Chellborg, of the firm of Robinson,
Haydon & Company, No. 1 Broadway, is
spending his vacation on his houselioat.
J. W. Whiteley, general sales agent for
Whitney & Kemmerer, No. 142 Liberty street,
left on Tuesday for a two or three days’ yacht¬
ing cruise.
Edward Aspinwall, of h'rederic A. Russell’s
office, N'o. 1 Broadway, is on his vacation,
which is being spent at Hamilton and other
points in Canada.
M. R. Hellbut, of Robinson, Haydon &
Company, No. 1 Broadway, will be one of
the many coal men to visit the Panama-
Pacific exposition at San Francisco this year.
Mr. Hellbut leaving for the coast at the end
of August.
E. H. Sanborn visited the New York offi¬
ces of his company, the Berwind- White Coal
Mining Company, last Tuesday, coming over
from Philadelphia.
J. H. Davison, New York manager for
Weston Dodson & Company, Inc., left on
Saturday for a visit to Frisco and other points
on the Pacific coast.
Willett H. Brown has resigned as vice-
president of the Skeele Coal Company, of No.
90 West street. His future plans have not
yet been announced.
W. F. Armstrong, of the firm of Robinson,
Haydon & Company, No. 1 Broadway, leaves
on the 21st for a vacation to be spent up in
the Pocono mountains.
F. A. Taylor, sales agent for the Maryland
Coal & Coke Company, with headquarters
in Philadelphia, paid a Tuesday visit to the
New York offices of his company this week.
W. A. Marshall, of W. A. Marshall & Com¬
pany, No. 1 Broadway, left last Thursday for
a trip up to Maine. It will be principally a
pleasure trip, and Mr. Marshall expects to
return in about a week.
R. C. Gillespie, Boston manager for the
Consolidation Coal Company, came over Tues¬
day and took in the tournament of the New
York Coal Trade Golf Association at the
Greenwich Country Club.
The anthracite tonnage of the Lehigh &
New England Railtoad, which was not re¬
ported in the railroad shipments furnished
by the anthracite statistical bureau in July,
amounted to 257,070 tons, an increase of 23,-
792 tons over July, 1914. '
The Skeele Coal Company announce the
appointment of Frank J. Honan as vice-
president, to fill the vacancy caused by the
resignation of W. J. Brown. Mr. Honan was
for several years Buffalo manager of the
company, coming to New York six months
ago to become assistant to the president.
The JVall Street Journal states that at least
one-third of the estimated earnings of the
Bethlehem Steel Corporation over the next
two years will go into new construction. This
will mean an expenditure of at least $25,000,-
000. Some of the new construction work is
already under way. The plans call for new
blast furnaces, sheet and tin plate mills, wire
mills, steel plates and various other forms of
commercial steel. It is said that the cor¬
poration is now employing between 31,000
and 32,000, and that it would not be sur¬
prising if it had 50,000 men employed a year
or two hence. This corporation is said to
have unfilled orders on its books now to the
extent of $250,000,000.
The Sackett Coal Company, at Sackett
street and Gowanus canal, Brooklyn, N. Y.,
has awarded the contract for the erection of
a new pocket to be built entirely of re¬
inforced concrete, and of 4,000 ton capacity.
It will be equipped with a steel hoisting tower,
one-man operation, of the Mead-Morrison
type. The Guarantee Construction Company
of New York have the contract, and work
has already commenced. The same company
have also another contract for erecting a
2,500-ton capacity pocket for F. A. & D. R.
Ailing of New Haven, Conn., to be equipped
with a mast and gaff hoist, clam shell bucket,
and modern conveying appliances for eco¬
nomical coal handling. This pocket will be of
tipple construction on a pile and concrete
foundation.
Last week an announcement was made of
the incorporation of the Haaren-Dartt Coal
Company, of Manhattan, to engage in the fuel,
stevedoring and trucking business. The cap¬
ital stock is named at $20,000. The incorpora¬
tors are E. F. and C. W. Haarcn and W. H.
Dartt, No. 552 West 24th street. This is a
merging of the two retail coal companies,
D. O. Haaren & Sons, for many years in
business at 14th street and North river, and
Dartt & Co., of No. 552 West 24th street.
About two years ago D. O. Haaren died, and
the business that he founded has since been
run by his sons. The new company will con¬
tinue to operate the two plants at 20th street
and North river and the Dartt plant in West
24th street, while they will extend the busi¬
ness in the stevedoring line, commenced by
the Dartt people some years ago. The 14{h
street plant of the Haaren Company was
abandoned some time ago.
THE BLACK DIAMOND
139
No. 7]
Philadelphia Trade.
Current Business Is Light, But Orders
for Future Delivery at Present Prices
Are Rejected.
Office of The Black Diamond,
1400 Land Title Building,
Phil.adelphia, August 12.
Trade conditions have neither improved nor
otherwise within the week. Here and there
a growl against the condition in the hard coal
trade is heard, but on the average the soft
coal men have been holding their own.
Touching the future there has been a de¬
cided change. Some business that was of¬
fered at the beginning of the w'eek in bitu¬
minous for September delivery at the pre¬
vailing prices has been turned down, and
some members of the local trade who have
not been backward in declaring for a ten-
cent advance within the next month. Quite
a healthy sign is noted in the inquiries that
are being made for future delivery and this
feeling about on the price question is always
indicative that the consumers are getting
ready for a stocking up.
At the piers there is quite an adequate sup¬
ply of coal, though none of these points re¬
port that any of it is in distress. Quite an
amount of coal that was nearing the demur¬
rage point has been disposed of early this
week. That relieved the pressure. Loading for
export has not been as heavy during the past
seven days as marked the closing of .July,
though charters from this port indicate that
the next ten days may see a number of boats
here for coal. New England business, which
was fairly heavy during the latter part of July,
has fallen off to quite an appreciable de¬
gree.
Prices on the various grades of Pennsylva¬
nia coal and Western Alaryland have not
changed in the past week. Fairmont slack
has not lost the strength that has been shown
for the last three weeks. Quotations range
from fifty-five to sixty cents a ton.
Anthracite Situation.
Hard coal dealers have anticipated a dull
August, but the condition of trade has been
away below even that which had been dis¬
counted. Chestnut and egg sizes have been
soft to the full meaning of the word. From
reliable sources it has been learned that sales
of chestnut have been made at the April price,
tax off, during the week and even concessions
of this latitude have not moved any great
amount of it. Two reasons were offered as
to the cause. One was that the warm April
of the last spring caused a strong selling
movement that stocked up the dealers and
allowed them to get their customers sup¬
plied earlier than for many years past. The
other is the effect of the motor truck on
modern retailin.g business. \Miere, in former
years, the retailer with a couple of two-horse
^cagons puttered about all summer getting his
deliveries made, the auto truck has cut down
the length of time of delivery to a .great de¬
gree. To this must be added the fact that
retailers have not extended credit this year
in many places where formerly thej' would
take a chance.
A survey of the retail yards made by a sales¬
man old in the anthracite game shows that
there is not an inordinate amount of coal on
hand and once the buying for the fall starts
in it will soon make the dullness now at hand
forgotten.
Pea coal has not been so bad off for the
week. The heavy buying by the householder
is still some ways off, but quite a number
of the retailers are taking on this “poor man’s
fuel” in anticipation of the demand that will
open soon.
Philadelphia Trade Notes.
Geor.ge Foedisch, of the Whitney & Kem-
merer forces, is spending his vacation on the
Jersey coast.
John C. Lynch, office man for the Emmons
Coal Mining Company, is spending his vaca¬
tion at Atlantic City.
Fred W. Foedisch, of the company bearing
his name, made a mid-week visit to the Ar¬
row mine near Windber, Pa.
S. C. Hetherington, of Hetherington & Co.,
put in several days in New York attending
to export business which has been offered his
company.
C. C. Fredricks, who has retail yards at
Wayne Junction, left the early part of the
week with his- wife for a trip to Niagara Falls
and Canada.
Gucker Bros, are rebuilding and improving
their pockets and when completed will have
as modern a trackage equipment as is in
Chestnut Hill.
J. Howard Keeley, who kept a retail yard
in Manyunk for several years, died after a
short illness of a couple of weeks and was
buried on Saturday last.
H. C. Pearson left on Wednesday evening
for a tour of Lake Ontario and the St. Law¬
rence river. The itinerary of the party will
take in two weeks of travel.
L. A. Hickley, of the Island Creek Coal
Sales Company, left with his family early this
week for a two-w'eeks vacation, which will
be spent on the Great lakes.
W. A. Perry, of the Greensburg-Connels-
ville Coal & Coke Company, with lieadquar-
ters at Ligonier, Pa., paid a business visit
to the Philadelphia trade early this week.
Martin F. Connor, retailer, with yards at
Germantown, with his wife returned this week
from a trans-continental trip which concluded
with a visit to the San Francisco exposition.
Harry Stauffer, of the local office of B.
Nicoll & Co., and E. Kelly Rothstein, from
New York, started for Latrobe, Pa., early this
week, where they will inspect a new property
of that company.
Robert P- Magee, local manager for the
Knickerbocker Fuel Company, is away on his
vacation — somewhere. The “somewhere” is
used advisedly, for no one but his stenogra¬
pher knows, and she won’t tell.
D. B. Zimmerman, president of the Que-
mahoning Coal Company, was in Philadelphia
the latter part of last week. He had been
elected a member of the Linion League Club
and while here he was initiated.
Frank Taylor, of the Maryland Coal & Coke
Company, was away from the office for a day
this week. The occasion was the celebra¬
tion of his wife’s birthday, which was held
at their summer home in Qcean City.
Philadelphia Bituminous Exports.
Exports of bituminous coal from Philadel¬
phia during July (yet incomplete), as com¬
pared with Jul}^ of last year, were as follows:
1914
. 'sV.ios
5,690
1,504
746
5,690
49,704*
New England Trade
Coiintr}' — 1915
Brazil . 15.270
Cuba . 51.197
Italy . 9,121
Spain . 30,044
France . 21,637
Argentine . 3,519
Porto Rico . 2,274
Algiers . 3,3S8
Dutch Guiana . 805
Mexico .
British West Indies
French West Indies
137,555
Boston, August 12. — {Special Correspondence.)
— The New England coal situation is some¬
what mixed. That is to say, the demand for
anthracite holds up well, while that for bitu¬
minous is somewhat disappointing.
The unsatisfactory condition of the bitu¬
minous market is generally credited to the fact
that a great many manufacturers in this sec¬
tion of the country are well supplied with water
power and naturally are consuming as little
bituminous as possible. Indications are, also,
that water power will be plentiful for the next
two months at least, and many of the local
wholesale bituminous agents look for no gen¬
eral improvement in the demand for supplies
during that period. The local market, how¬
ever, appears quieter than it really is for many
manufacturers, machine shops, etc., which are
busily engaged in making w^ar materials for
the allies are consuming large amounts of coal
and are constantly in the market for fresh
supplies.
Contract New River and Pocahontas are
coming into New England in about the same
volume as last week. The local July receipts
were smaller than generally anticipated and
since then have been even smaller it is under¬
stood. The spot market for these coals at
Mystic Wharf is practically at a standstill.
Occasionally a sale is reported at that place at
or close to $3.60 per ton f. o. b. cars. Because
of the unsatisfactory conditions at Mystic
Wharf comparatively little spot coal is being
offered. Georges Creek at Mystic Wharf is
dull, but firm at $3.90 per ton on cars. Penn¬
sylvania bituminous is weak, although not
openly quoted lower. Because of conditions
here, shippers are giving more attention to the
western field for distribution. Locally, Penn-
sylvanias are generally quoted at ninety cents
to $1.50 per ton on cars at the mines, but some
have been offered at slight concessions in the
hopes of reducing the accumulation at shipping
points.
So far this month the demand for anthracite
has exceeded general expectations and many
of the local dealers firmly believe that greater
activity will rule during the last half of August.
The big company agents claim to be holding
strongly to regular circular prices. Many,
however, appear to have more nut than they
want and slight concessions are rumored to
have been made on this size. Independent
shippers have openly offered prepared sizes
throughout New England at concessions, but
with the exception of nut, the amounts re¬
ported as having been sold have been so small
that they have failed to influence big company
prices.
The bulk of the business transacted since
last reports has been for delivery at all rail
points. New contract orders have been com-
parativ^ely few and far between, but fortunately
weather conditions outside have been decidedly
unfavorable for water shipping and as a result
there has been no accumulation anywhere.
Stove cOal at Mystic Wharf is generally quoted
at or close to $6.10 per ton on cars screened,
and nut at $6.35, but it is not at all improbable
but that some nut has sold for five cents per
ton less when prompt payment has been guar¬
anteed. Broken has sold there quite recently
at $5.65 per ton on cars, but the demand for
this size has fallen off materially.
The movement of hard coal to the provinces
also has fallen off, but should pick up within
the near future owing to the fact that exports
from England have practically been forbidden
and these Canadian possessions will have to
depend more or less upon us for supplies. A
considerable tonnage has been unloaded at
Maine ports during the past week, especially
at Kennebeck river points. Everybody in Bos¬
ton this week is commenting on the improve¬
ment in collections which is taken as an indi¬
cation that business interests in general have
more confidence in the future of this country.
The leading feature of the marine freight
rate market is the large tonnage of return
freights being obtained by owners of anthra¬
cite as well as bituminous barges. Large quan¬
tities of ice are being carried from Blaine
points to New York, and ore, lumber and fer¬
tilizer to more southern ports. The demand
for biturninous space from Hampton Roads to
Boston is quieter, but rates are unchanged at
seventy-five to eighty cents per ton. From
Baltimore to Boston rates range from seven
to ten cents per ton more. Space for anthra¬
cite from New York to Boston remain un¬
changed at fifty to fifty-five cents per ton.
Boston Trade Notes.
The Searls Coal Company, of Portland, with
a capital of $250,000, has been granted a Maine
charter. The company proposes to operate
coal mines, coal lands, mineral and mining
rights and to develop the same. The names
of the incorporators are: A. B. Farnham,
George S. Soule, and J. P. O’Donnell, all of
Portland, Maine.
Following are the receipts of anthracite and
bituminous coal at Boston during July and
those from January 1 to July 31, together with
comparisons (in tons) :
Antliracite —
JULY
1915
1914
Decrease
By sea. domestic....
145,208
14,039
By rail .
. 9,372
15.810
6,438
Total .
. 140,.541
161,018
20.477
Bituminous —
Bv sea, domestic....
. 328,740
383,520
54,780
By sea. foreign .
13,976
*6,110
By rail .
. 12,159
2,602
*9,557
Total .
400,098
39,113
JANUARY 1 TO JULY
31
.\nthracite—
By sea, domestic....
. 841,108
987,296
146,188
By rail .
93,674
*5,598
Total .
. 940,380
1,080,970
140,590
Bituminous —
By sea, domestic. . . .
. 2,748,797
2,875,254
126,457
By sea, foreign .
. 257,155
104,788
*152,367
By rail .
. 47,728
34,995
*12,733
Total . 3,053,675 3,015,037 *38,638
* Increase.
140
THE BLACK I)IA3I()XD
[August 14
Baltimore Trade.
Baltimore, Aug. 12. — (Sp-ccial Correspond¬
ence.) — That the coal trade is expecting a
period of better times is evident on every
hand. Throughout the mining districts of
Maryland, West Virginia and Pennsylvania,
while production is as j'et greater than de¬
mand in many cases, preparations are being
made for increased output with the coming
of fall. Wherever possible the trade is ar¬
ranging affairs so that the best results will
be secured from labor and other elements of
production and prompt removal of coal.
number of mines are being arranged for in¬
creased output, while several companies are
busy sinking new shafts.
That the railroads too are working to pre¬
pare is self-evident. Following the recent or¬
der of the Baltimore & Ohio for 2,000 new
steel hopper cars and the announcement that
the shops of the company are busy bringing
all motive power up to standard and parking
it pending an increased tonnage movement,
the Pennsylvania Railroad has decided to
build ninety-four more locomotives at the Al¬
toona shops, making 194 arranged for in 1915.
Expecting a continuance of its increasing
export coal movement, the Western Maryland
Railroad has been busy improving its yard
facilities around the big Port Covington piers.
The coming week will probably see an award
by the Pennsylvania Railroad for its new
coal pier and yards here, to cost about $2,000,-
000; while the Baltimore & Ohio is also about
ready to give a contract for a giant new steel
and concrete coal pier to cost $1,000,000, and
supplement the work of the present big pier
at Curtis Bay.
Of the immediate situation there is cer¬
tainly an increasing demand for fuel on con¬
tract and some new business developing in
scattered sections. Prices have not responded
as yet, and probably there will not be any
big move in that direction until demand as¬
sumes a proportion where the output is more
easily absorbed than at present. That ton¬
nage movement is on the increase, however,
is undoubted.
Prices to the trade
at the mines
may be
quoted as follows:
F. O. B.
F. O. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
$2.23@2.2S
Run of mine . .
. 75@ .80
2.18@2.23
Slack .
. 50@ .60
1.93@2.03
Somerset —
Best .
. 1.25@1.30
2.43@2.48
Good .
. 1.10@1.15
2.28@2.33
W. M. R. R.—
Freeport . .
. 75@ .80
1.93@1.98
B. & 0.—
Freeport .
1.93@1.9S
P. R. R.—
Best South Fork .
. 1.30@1.35
2.48@2.53
Miller Vein .
. 1.10@1.15
2.78@2.83
Ordinary .
2.03@2.13
The e.xport movement continues excellent
from this port. Following the movement of
more than 251,000 tons for July, the first week
in August saw a shipment on foreign account
of 54,856 tons.
.'\nthracite men here report that there is a
slow gain in orders coming in for late sum¬
mer and early fall deliveries. Next month,
however, will see many orders go on the
books, and the fall trade is expected to be
exceptionally prosperous from many angles,
although the call for industrial coal may not
be up to the proper mark at the outset.
The coal trade is figuring on what effect the
British order against shipment of any British
coal to other than British dependencies will
have. That Britain’s allies will now turn to
America seems assured.
Buffalo Trade.
Buffalo, N. Y., .August 12. — There is only
a fair movement of anthracite by lake from
this port, as shippers are obliged to obtain
assurance that there is dock room at the
various ports before sending cargoes there.
Midsummer buying was never lighter and it
is not expected to improve right away, un¬
less there is a small spurt near the end of
the month to take advantage of the last ten-
cent reduction. The shipments for the week
were only moderate, though not so small as
during some weeks late in July. The amount
for the week is 96,150 tons, distributed as fol¬
lows: Duluth-Superior, 37,350 tons; Chicago,
25,000 tons; Milwaukee, 12,300 tons; Green
Bay, 8,500 tons; Sheboygan, 7,000 tons; Port
Arthur, 3,500 tons; Fort William, 2,500 tons.
It has not been often in late seasons that the
midsummer shipments have run below 100,000
tons a week.
There is no life to the local trade yet and
not much is expected till there is some hint
of the approach of winter. The city con¬
sumer is engaged in other occupations than
laying in coal. It is expected that the total
consumption of anthracite this year will fall
off some, as there are so many men out of
work that families are doubling up some.
.All mines, anthracite as well as bituminous,
are running at a slow rate, as it has been
hard to find room even to store a normal
amount of coal and bituminous consumers
are as much against stocking up as they ever
were. Then the mines have not stocked much
slack and the move has obliged them to sell
it at a low price most of the summer. It has
improved in price steadily for some weeks
and it is expected that it will be back to nor¬
mal in early fall, though what this means to
the shipper is hard to tell. If cars are plenty
the price cannot be so much higher than it is
now, for the mine capacity is so great that
it will be easy to keep the production ahead
of the demand. If cars run short the price
will advance at a good rate, as shippers will
be quick to take advantage of it.
So much of all business activity depends on
the movement of iron that the improvement
in that trade is held to be a sure sign of good
advances in coal this fall. . All that is needed
in this market is a greater activity in Canada,
which it is feared will not take place. The
war has tied up the industries there in a way
not approached on this side of the line.
Buflfalo Trade Briefs.
The Philadelphia & Reading Company is
receiving more coal for lake shipment of late
and appears to be getting ready for a brisker
fall movement.
H. J. Huntsinger, of the Frick Coal & Coke
Company, has bought a small farm a short
distance from Hamburg village, where he will
spend his summers hereafter.
Seymour Whitley, sales agent of the Pitts¬
burgh Coal Company, has returned from a
Canadian trip, during which he took account
of the coal trade here, finding it as a rule
pretty dull.
Vice President W. H. Hufstader, of the
J. B. Jenkins Coal & Coke Company, is some¬
what recovered from his serious illness. The
business is in charge of General Sales .Agent
Charles A. Storck.
The small size of some of the coal cargoes
lately cleared shows that a few of the smaller
craft are going out. The laid-up fleet at the
breakwater begins to dwindle. It has some¬
times numbered about twenty-five steamers.
.A Canadian coal firm sends letters to the
trade here with this legend on the reverse of
the envelope: “Business as usual during the
^alterations to the map of Europe.” .A burst-
‘ing shell in red tells the rest of the story.
But Canada is not doing much business for all
that.
With the opening of the bids to supply
2,000 tons of slack coal to the Tonawanda
waterworks on the 23rd, practically the last
of the season’s contracts will be history.. The
prices have been a trifle lower than last y'ear,
but were perhaps as satisfactory to the trade
as the single orders have been.
The manufacturing census of Buffalo prom¬
ises to show that an increase of twenty-five
per cent has been made in the past five years,
as against only three per cent in the pre¬
vious five years. Only a semi-official report
has been made as yet. Buffalo has in late
years become a very smoky city, causing the
people both to congratulate themselves and
to wish for the smoke consumer to come
along.
.A representative' of the Union Carbide Com¬
pany of Canada, which has a very large fac¬
tory at Welland, was in Buffalo this week,
looking after business. He states that the
war has given the factories of that sort, of
which there are others in this country, a big
trade. The use of limestone by them is so
great that the port of Calcite on Lake Huron
will ship a matter of 2,000,000 tons of it this
season. The carbide companies have dropped
anthracite screenings, of which they used to
use a large amount, and are now taking a
special grade of coke instead.
Birmingham Trade.
Birmingham, .Ala., August 12.— {Special Cor¬
respondence.) — There is hardly an existing doubt
but that a better feeling and a more cheerful view
of the general trade conditions in coal mining is
being felt. slow but gradual improvement is
beginning to show up. This feeling exists more
with the iron making people who mine their own
coal, than with strictly commercial coal concerns.
The heavy iron sales at some advance in prices
has caused more demand for coal to be produced
for the production of iron caused by increasing
demand. Within the next two or three weeks an
increased number of furnaces will be in opera¬
tion, sufficient to bring the number up to twenty-
one or twentj'-two in blast out of thirty-two in
the district. .And, of course, this means more
coal and larger tonnage to be mined, and such
condition is enough for a more cheerful view
to be taken of the coal situation.
The comrnercial people are out hustling for
trade and with the approaching of fall it is ex¬
pected that a better trade will soon be had with
the retail yard men, and a better condition of
domestic coal is expected to begin soon.
The bunker business at Mobile and New Or¬
leans moves along nicely and some fair business
is going to the ports. Operators who make a
specialty of blacksmith coal say that they are
still having a good show of business for that kind
of coal.
No change has yet been made in regard to
prices — for fall. The following prices prevail,
but are not strictly carried out :
F. O. B. F. O. B.
Bibb County Domestic Coal — Mine Birmingham
Bibb County domestic coal.. $2.10 $2.40
Cahaba Fancy Lump . 2.10 2.40
Cababa No. 2 . l.S.) 2.15
Jefferson County —
Fancy Steam Pratt . 1.70 2.10
Ru:i-af-mine . 1.15 Freight rate .30
Jefferson Seam —
Mine-run . 1.15@1.25 Freight rate .30
Horse Creek mine-run . 90@1.10 Freight rate .40
Carbon Hill lump. Walker
County domestic . 1.60 2.00
Most all coals based on this classification.
Shelby County Domestic Coal —
Montevallq fancy lump . 2.00@2.25 Freight rate .30
Blacksmith coal, washed and screened per ton $2.00 to
$2.25 at mines, with different rates to various points.
\^'ithin another thirty days the big benzol plant
of the Tennessee Coal, Iron & Railroad Company
at Fairfield, attached to the by-product coke
oven.s, will be nearing completion and probably
will be ready for operation.
This plant, according to the plans, will have a
daily output of 13,000 gallons of benzol per day,
and the statement comes from Fairfield that con¬
tracts have been offered to take every gallon of
the product that can be turned out.
The new plant is being built in a most sub¬
stantial manner, and the industry will give em¬
ployment to a number of men.
It has been figured the progress on the con¬
struction will be such that during this month
some of the machinery will be in position and
being tried out. Around Fairfield there appears
to be an impression that officials are anxious to
get the works completed at the earliest possible
moment, and to that end everything is being done.
The little benzol plant of the Thomas A. Edi¬
son Company at the by-product coke ovens of the
Woodward Iron Company, manufacturing about
2,000 gallons of the product daily, has been com¬
ing up to all expectations. The progress on the
larger benzol works at the Woodward plant, to
manufacture about three or four times as much
as the smaller industry, is steady and before an¬
other sixty days the plant will be in operation.
There is a strong demand for all the by-prod¬
ucts of coal, and coke ovens are being worked
to their capacity.
Reports are that the Gilmore mines on the
Y’arrior river, above Tuscaloosa, will reopen the
15th of August, after having been closed several
months. The coal from the mines will be barged
to Mobile and New Orleans for use on ocean
going vessels. The coal was recently tested and
is said to be excellent for this purpose.
C. H. McFarlane, who has been with the Jef¬
frey Company at the Birmingham office some
months, has resigned to become superintendent of
the Montevallo IMining Company at Aldrich,
Shelby county. New machinery will be put in
and general improvements made under super¬
vision of McFarlane and enlargement of capacity
is being considered.
The Aetna Powder people report that business
is increasing with coal mining companies.
L. E. Patton of Southern Fuel & Iron Com¬
pany has a chemically treated bag which is being
used largely in this district for shipping black¬
smith coal and coke.
The Black Diamond
Vol. 55. No. 8
CHICAGO
COLUMBUS
AUGUST 21, 1915
NEW YORK (nr. n 'V
piTTSBURGH rCF Tear
Anthracite
Rates
Reduced by
the Commission.
The Interstate Commerce Commission last
week made public its report and findings “in the
matter of rates, practices, rules and regulations
governing the transportation of anthracite coal.”
The report covers 235 printed pages. It sums up
an investigation which covered about three years.
The order to begin the investigation was issued
June 10, 1912; the case was submitted on Feb¬
ruary 1, 1915, and was decided on July 30.
In essence, the commission decides that the
railways used primarily a wrong basis of charg¬
ing for their early service to coal shippers. This
resulted in a steady increase in carrying charges.
At the climax of the rise the rates were em¬
balmed in a tariff. These rates are now unrea¬
sonably high. Because of certain practices, which
are detailed, these rates are discriminatory in
favor of shippers of anthracite coal owned by
the railway companies. In accordance, the com¬
mission orders the rates reduced radically.
The average reduction is between fifteen and
twenty-five cents per ton ; the reductions in some
cases range in excess of seventy-five cents a ton.
These reductions apply mainly to points local to
the roads on which anthracite is originated and
to tidewater ports where the coal is transshipped
by vessels to other destinations.
The Commission’s Conclusions.
Reversing the customary order of procedure,
we give first the conclusion of the commission,
the data which supports the conclusion being
given later. The commission in deciding the case
says :
"The importance of this case cannot easily be
overstated. The record is so extensive as to
forbid a review in detail of the character of
much of the evidence introduced. After a care¬
ful review of the record, we are impressed with
the inherent unlawfulness of the rates and prac¬
tices established by these carriers, which clearly
are the outgrowth of past conditions wherein the
carriers were producers, shippers, transporters
and vendors of the commodity.
“If the rates they established for transporta¬
tion were excessive, it resulted in no hardship to
their mining and selling operations because the
excessive profits from the transportation services
offset the absence of profits in their mining and
selling operations, and high rates eliminated the
competing shipper from the markets.
“If the record in this case were barren of
evidence as to income, revenues, and low operat¬
ing costs, resulting from the transportation of
this commodity, the mandatory language of the
act to regulate commerce would require removal
of the unlawful discriminations, preferences, and
advantages which have, for many years, been
extended by these carriers to their allied and con¬
trolled coal companies and which operate to the
prejudice of the individual shippers of this com¬
modity. The conduct of these carriers, extend¬
ing over a long period of years, in granting to
their allied coal companies concessions from, and
offsets against their established tariff rates, pre¬
sents very strong evidence that the rates on
anthracite coal which these carriers established
are excessive.
“Their coal companies ship eighty per cent of
the total production, and if a substantial reduc¬
tion is made in the tariff rates, its full effect will
fall upon but twenty per cent of the tonnage
shipped. If the great purpose of the act to regu-
date commerce is to be carried out, we must re¬
quire that such tariff rates on this commodity
shall be established as can be maintained on the
shipments of all shippers.
“The operations of several of these carriers
have for many years produced a very large in¬
come for their stockholders. Having these re¬
sults before us in the Five Per Cent case, 31 I.
C. C., 384, we hold :
“ ‘The financial condition of the various rail¬
roads comprising the thirty-five systems varies
greatly, as disclosed by their net corporate in¬
come as well as by their net operating income.
The condition of some of them is so prosperous
Discrimination in Favor of Controlled
Coal Companies Is Found and Becomes
the Ruling Factor in Effecting a Reduc¬
tion in Charges.
that they clearly do not need a higher net in¬
come ; the condition of others is such as to pre¬
clude the expectation of a return upon outstand¬
ing capital stock or the possibility of raising
much additional capital without a thorough re¬
organization.’
Rates Are Prescribed.
“Upon consideration of all the facts and cir¬
cumstances disclosed by the record we are of the
opinion and find that the respondent carriers’
rates per ton of 2,240 pounds on anthracite coal
Effect of the Decision.
The new rates on anthracite coal
will go into effect on October 1,
1915.
This first decision has to do only
with the rates east of Buffalo and
Pittsburgh. The reductions range
between fifteen and twenty-five cents
a ton.
Whether prices in that territory
will be reduced has not yet been de¬
cided. The commission reduced the
rates, palpably to give the inde¬
pendent operators a chance to make
money. Some operators say that a
small decrease in price must come
in obedience to laws of commerce.
The commission allowed the old
rates to apply to the lakes. This
means unchanged lake prices. It
granted an increase of twenty-five
cents a ton in the Chicago rate and
to points beyond. Chicago shippers
cannot increase prices unless the lake
price also is advanced. Also the com¬
petition of bituminous coal and coke
will work against an increase.
in carloads from the Wyoming, Lehigh and
Schuylkill regions in the state of Pennsylvania to
the following named points :
[These rates are to become effective on or before
October i, 1915.]
TABLE A.
Kates for transportation by The Central Rail¬
road Company of New Jersey from all
collieries, washeries, and points named on
page 2 in The Central Railroad Company of
New Jersey tariff I. C. C. A. number
332, to —
Pea size
Pre- and
pared smaller
sizes sizes
Elizabethport Pier (Elizabethport), N. J..$l,40
Port Johnson, N, J . 1.40
Communipaw Pier (Jersey City), N. J.... 1.45
Port Liberty, N. J . 1.45
Rates for transportation by the Philadelphia &
Reading Railway Company from all collier¬
ies. washeries, and points named in the
Philadelphia & Reading Railway Company’s
tariff I, C. C. number A-518, to Port Read¬
ing, N. J . 1.40
Rates for transportation by the Ifehigh Valley
Railroad (Company from all collieries, wash¬
eries, and points named on the second page
in the I.ehigh Valley Railroad Company’s
tariff I. C. C. number D-701, to Perth Am-
$1.30
1.30
1.35
1.35
1.30
boy, N. J . . . . 1.40 1.30
Rates for transportation by the Erie Railroad
Company from all collieries, washeries, and
points on the Erie Railroad specified on the
second jiage in the Erie Railroad Company’s
tariff I. C. C. number D-662, to Weehawken,
N. J . . . ., - .. . 1.45 1.35
Joint rates for transportation by the Erie Rail¬
road Company and the New York, Susque¬
hanna & Western Railroad Company from
1.35
1.35
1.35
ajl collieries, washeries, and points on the
Erie Railroad specified on the second page
in the Erie Railroad Company’s tariff I. C.
C. number D-662, to Undercliff, N. J . 1.45 1.3.5
Joint rates for transportation by the Wilkes-
Barre & Eastern Railroad Company and the
New York, Susquehanna & Western Rail¬
road Company from all collieries, washeries,
and points bn the Wilkes-Barre & Eastern
Railroad specified in the Erie Railroad Com¬
pany’s tariff I. C. C. number D-G63, to
Undercliff, N. J . . i.,j5
Rates for transportation by The Delaware,
Lackawanna & Western Railroad Company
from all points named on pag^l (title-page)
in The Delaware, Lackawanna & Western
Railroad Company’s tariff I. C. C. number
8088, to New York Lighterage Station,
„N- -I- . 1.45
Kates for transportation by the New York,
Ontario & Western Railway Company from
all points on the New York, Ontario &
Western Railway specified on page 3 in the
New York, Ontario & Western Railway
Company’s tariff I. C. C. number 5155, to
Weehawken, N. J . 1.45
Joint rates for transportation by The Delaware
and Hudson Company, the Erie Railroad
Company, and the New York, Susquehanna
& Western Railroad Company, from all col¬
lieries and washeries at points and stations
on The Delaware and Hudson Company
specified on the second page in the Erie
Railroad Company’s tariff I. C. C. number
D-662, to Weehawken, N. J., and Undercliff,
^ -T . . . 1.45 1.35
Joint rates for transportation by The Delaware
and Hudson Company and the New York.
Ontario &_ Western Railway Company, from
all collieries and washeries at points and
stations on The Delaware and Hudson Com¬
pany specified on the second page in The
Delaware and Hudson Company’s tariff
I. C. C. number 12077, to Weehawken, N. J. 1.45 1.35
Joint rates for transportation by The Dela¬
ware and Hudson Company, The Delaware,
Lackawanna & Western Railroad Company,
The Pennsylvania Railroad Company, and
The Northern Central Railway Company,
from all collieries, washeries, and points on
The Delaware and Hudson Company and
The Delaware, Lackawanna & Western Rail¬
road specified on page 2 in The Pennsyl¬
vania Railroad Company’s tariff AA-I. (j. C.
number 551, to South Amboy, N. J . 1.40
TABLE B.
1.30
Pea size
Pre- and
pared smaller
sizes sizes
Rates for transportation by The Delaware,
Lackawanna & Western Railroad Company
from all points named on page (title-page)
in The Delaware, Lackawanna & Western
Railroad Company’s tariff I. C. C. number
8088, to —
Hoboken City. N. J .
Paterson, N. J .
Newark, N. J .
Boonton, N. J .
Washington, N. J .
Binghamton, N. Y .
Waverly, N. Y.-Pa .
Elmira, N. Y .
Corning, N. Y .
Bath, N. Y .
Dansville, N. Y .
East Bethany, N. V .
East Lancaster, N. V .
Syracuse, N. Y .
Utica, N. Y .
Rates for transportation by the Lehigh Valley
Railroad Company from all collieries, wash¬
eries, and points named on the second page
in the Lehigh Valley Rai'.road Company’s
tariff I. C. C. number D-lOl, to —
Jersey City, N. J .
Newark, N. J .
Bound Brook. N. J .
Phillipsbtirg, N, J — ■
From Wyoming region .
From Lehigh and Schuylkill regions. . .
Waverly, N. Y .
Van Etten, N. Y .
Ithaca, N. Y .
Burden, N. Y .
Hyat’s Corners. N. V .
Kendaia, N. _ Y .
Geneva, N. V .
Caledonia, N. Y .
Depew, N, Y .
Rochester, N. Y . .
Rates for transportation by the Erie Railroad
Companv from all collieries, washeries, and
points on the Erie Railroad specified on
page 3 in the Erie Railroad Company’s tariff
I. C. C. number D-619, to —
Jersey City. N. J .
Paterson, N. J .
Newark, N. J .
Middletown, N. 5' .
Port Jervis, N. 5' .
Binghamton, N. V .
Waverly, N. Y .
Elmira. N. Y .
Corning, N. Y .
. Hornell, N. Y .
1
$1.45
1.35
1.40
1.20
.95
.90
1.15
1.25,
1.35
1.45
1.60
1.75
1.90
1.40
1.50
1.45
1.40
1.25
.95
.85
1.15
1.30
1.45
1.45
1.55
1.55
1.60
1.80
1.95
1.85
1.45
1.35
1.40
1.05
.90
.90
1.15
1.25
1.35
1.60
$1.35
1.22
1.30
1.09
.86
.82
1.05
1.14
1.17
1.27
1.40
1.53
1.66
1.22
1.31
1.35
1.30
1.13
.75
.68
1.05
1.18
1.32
1.32
1.35
1.35
1.39
1.56
1.71
1.61
1.35
1.22
1.30
.95
.82
.82
1.05
1.14
1.17
1.40
142
THE BLACK DIAMOND
[August 21
Castile, N. Y . 1.75 1.53
Attica, N. y . 1.85 1.62
Uepew, N. V . 1.95 1.71
Rochester, N. V . 1.85 1.61
Kates for transportation by The Central Rail¬
road Company of New Jersey from all col¬
lieries, washeries, and points named on page
2 in The Central Railroad Company of New
Jersey tariff I. C. C. A. number 284, to —
Jersey City, N. J . 1.45 1.35
Newark, N. J . 1.40 1.30
Elizabeth, N. J . 1.40 1.30
Somerville, N. J . 1.20 1.09
Fhillipsburg, N. J. —
From Wyoming region . 95 .75
From Lehigh region . 85 .68
Rates for transportation by The llelaware and
Hudson Company from all points and sta- .
tions specified on page 2 in The Delaware
and Hudson Company’s tariff I. C. C.
number 11170, to —
Windsor, N. V . 85 .72
Nineveh, N, V . 90 .76
Sidney, N. Y . 1.00 .88
Well's Bridge, N. Y . 1.10 .97
Otego, N. 1 . 1.10 .97
Oneonta, N. V . 1.20 1.03
Colliers, N. Y . 1.20 1.03
Schenevus, N. Y . 1.25 1.07
Worcester, N. Y . 1.25 1.07
Cobleskill, N. Y . 1.35 1.16
Central Bridge, N. Y . 1.45 1.25
Albany, N. Y . 1-60 1.31
Troy, N, Y . 1.60 1.31
Mechanicsville, N. Y . 1.60 1.31
The Bone of Contention.
The essence of the opinions of both sides is
contained in a brief statement found on page 282
of the report. Counsel for one railroad said that
when cost accounting has been carried far enough
"it will be found that the cost of handling anthra¬
cite coal is so low that the rates are remunera¬
tive” and not only sufficient to take care of the
anthracite business itself but to make up the loss
sustained by handling other commodities. In fact
this attorney told his clients he would not take
the case if they proposed to "justify the rates on
the ground of cost because I said it is true of
this company as well as other companies that
their heavy traffic which moves in large volume
is, generally speaking, traffic which enabled them
to p.ay the cost which highly competitive traffic
cannot pay. Therefore I did not think we could
get anywhere with that line of argument.”
The commission on the same page says :
“The transportation of this low grade com¬
modity, anthracite coal, has been termed by these
carriers their ‘backbone traffic.’ They are en¬
gaged in producing and selling as well as trans¬
porting it. We cannot overlook the fact that
some force has brought the production and sale
of most of the tonnage of this commodity under
their control. If they establish excessive rates
on anthracite they become beneficiaries of condi¬
tions which were prejudicial to the business of
the individual operator or shipper. The power
to fix freight rates on this commodity was the
opportunity to confiscate property if the carrier
so willed.”
A little further on the commission says :
“A number of these coal companies, in whose
stocks the carriers had invested large sums of
money, have never paid to the carriers dividends
on these stocks. * * * Manifestly the return on
such investment accrues to the carrier on extra
profits from the freight rates charged on the
tonnage shipped by the coal company. But the
individual operator or shipper who must compete
with the coal company so financed by the carrier
obtains none of the profits that are in the freight
rates and freight rates established to produce
such extra elements of profit in addition to legiti¬
mate transportation costs and profits, are fatal
to the successful conduct of the business of the
individual operator or shipper.”
The defense of the operators clearly was that
the rates may be too high on anthracite coal but
they are justified by the fact they make possible
lower rates on other commodities.
The commission, without assailing this prin¬
ciple, views as predominant another matter. It
says that there is discrimination in the attitude
of the railways toward the controlled coal com¬
panies.
The Commission’s Struggle.
The report was written by Chairman McChord.
It starts out by explaining the old method of
assessing charges which it condemns. It strug¬
gles to find a proper new basis. The proceeding
is labored and, candidly, if a new basis is found,
the public is not taken into the commission’s
confidence.
In detail it tries out, first, the railroad sugges¬
tion that a fair return be allowed on the value
of the property. It is unable to agree with the
railway’s method of arriving at what is a proper
valuation.
Then it tries to compare the earnings per ton
mile on anthracite and other commodities and
thus find a proper basis. This effort seems to
have been abandoned so soon as it became clear
that anthracite rates were higher than others.
Next, it figures what are the earnings of anthra¬
cite carriers per mile of line per year. It com¬
pares these with those of other railways. Still
no basis is found.
The report arrives ultimately at what the com¬
mission thinks is a fair basis. This basis is not
stated in explicit terms. Rather the report names
a schedule of rates which are the embodiment of
an unnamed idea.
Original Rate Basis.
-A.ccording to the report, the railways on an¬
thracite coal originally had no tariff rates. In¬
stead, the operator was given a percentage of
the selling price at tidewater. The remainder
went to the railway to compensate it for carry¬
ing, for storing and for selling the coal and to
offset any waste due to degradation. The oper¬
ator, at first, was given forty per cent of the
selling price of his coal. The commission says:
“It gradually increased in later years, reaching
fifty and fifty-five per cent in the eighties, sixty
per cent in 1892, and sixty-five per cent on
November 1, 1900. The contracts were commonly
designated as sixty per cent contracts, sixty-five
per cent contracts, etc. The remaining portion
of the selling price of coal, forty or thirty-five
per cent, in more recent years was the freight
rate which the carriers charged to the individual
operators who elected to ship their own coal pro¬
duction to tidewater.”
The report then shows that since the selling
price of anthracite increased from year to year,
the freight rate per ton likewise increased. It
then says :
“While the adoption of a flat basis of rates in
19(11 and 1903 arrested the progressive increase
in the rates, the evidence clearly shows that the
percentage rates of which the flat or tariff rates
were an adaptation were excessive rates.
“There is here presented a condition wherein
carriers who were also dealers, not in their capac¬
ity as carriers but as dealers in the commodity,
through the agency of the Temple Iron Company,
established rates on anthracite coal for all ship¬
pers to tidewater.”
Thus the commission, before it came to the
point of considering any other matter, had con¬
cluded that the rates were too high, if for no
other reason than that they were on the per¬
centage basis for a number of years and that
percentage basis was yielding an ever higher rate.
Commission’s Point of View.
In one short paragraph the commission dis¬
closes its point of view on the whole question.
It says :
' “It has been the policy, for many years, of
these carriers to gain a monopoly of the produc¬
tion and sale of anthracite coal. Those whose
property they coveted were at their mercy as
they must either pay the toll in freight rates
which these carriers chose to exact or accept the
price for their product which the carriers or their
coal companies elected to pay.”
As proving the existence of this policy, the
commission goes on to cite certain things which
it says the established railways did to kill pros¬
pective competition. A lengthy section is devoted
to this subject. The ground work for the recita¬
tion of much scandal is the belief that the in¬
dependent operators were not satisfied with the
rates or the prices and hence were trying to build
independent railroads. It leaves out of considera¬
tion that in those days nearly everyone wanted
to build a railroad. The omission was vital.
It mentions three in particular. One was the
New York, Wyoming & Western. The most in¬
fluential independent operators behind it were
Simpson & Watkins. The latter, the report said,
were bought off at approximately a premium of
$5,000,000.
In 1899, the Pennsylvania Coal Company, prin¬
cipally, proposed to extend the Erie & Wyoming
railroad to Lackawaxen, Pa., and because of con¬
struction from that point of a railway line to
Kingston on the Hudson river there was organ¬
ized the Delaware Valley & Kingston Railway
Company, in November, 1899. On this subject
the commission says :
“In payment for these securities, which had a
par value of $6,010,000, the Erie Railroad issued
in March, 1911, to J. P. Morgan & Company,
$5,000,000 of its preferred stock and $32,000,000
Erie Railway Company Pennsylvanian collateral
four per cent gold bonds. The Erie paid a pre¬
mium of approximately $30,000,000 for this prop¬
erty and it charged the premium to its cost of
road.”
The third case to which it calls attention is
the Delaware, Susquehanna & Schuylkill Railroad,
owned mainly by Coxe Brothers & Company.
These and other cases are cited by the com¬
mission to bring out the point that the established
anthracite carriers were willing to go to an elab¬
orate extent to kill off prospective competition
and thus to maintain a monopoly over the busi¬
ness.
An Indication of Guilt.
On page 249 it quotes section five of article
seventeen of the constitution of Pennsylvania,
adopted in 1873. This clause of the constitution
might lie called the first draft of the commodities’
clause of the Hepburn act. The commission
says :
“It appears that the stock of most of the large
anthracite companies, which are owned by the
carriers respondent in this case, were acquired
by these companies subsequent to the year 1873.”
This it considers a sort of binding argument
which clinches the guilt of the carriers. That
IS, they not only did wrong, but knew they were
doing it.
Rewards of Monopoly.
Having established, as it believes, both the
intention and the fact of the monopoly, the com¬
mission goes on to show what are the rewards
of monopoly as measured in freight rates. This
IS brought out in the table of rates quoted at the
top of page 258, which is as follows:
Distance hauled (miles) —
6 to in .
11 to 15 .
16 to 20 .
21 to 25 .
26 to 50 .
51 to 75 .
70 to 100 .
101 to 125 .
120 to 150 .
151 to 175 .
176 to 200 .
201 to 250 .
251 to 300 .
301 to 350 .
351 to 400 .
401 to 500 .
501 to 600 .
001 to 700 .
701 to 800 .
801 to 900 .
901 to 1,000 .
1,001 to 1,100 .
1,101 to 1,200 .
1,201 to 1,300 .
It then says:
Revenue
per loaded
car-mile
(Cents)
- 169.57
- 109.44
- 81.88
_ 66.95
_ 49.91
- 67.45
- 52.79
- 48.49
- 43.51
- 40.5fl
- 31.82
- 28.37
- 27.44
- 26.70
- 25.12
- 18.88
- 16.30
- 13.65
- 16.08
- 12.29
_ 11.30
- 10.64
9.86
“The remunerative character of the rates on
anthracite coal is well illustrated by a compari¬
son of the foregoing revenue per loaded car
mile with the revenue per loaded car mile on
various commodities reported by sixty-five car¬
riers in the five per cent rate case and with the
average revenue per loaded car mile earned on all
of the freight traffic of 1900 by carriers for the
year ended June 30, 1913.
TABLF. A.
Net reveituc on representative carload shipments of vari¬
ous coininodilics during October, igi3, averaged,
for 6g carriers, arranged in order of
length of haul.
Commodities —
Average
Carloads haul
Average
net reve¬
nue per
loaded
car-mile
Hemlock lumber .
144
(Allies)
59
(Cents)
28
Hides, leather, etc .
Drick, stone, etc .
41
65
24
304
66
22
Iron ores .
29,521
87
20
Cement (building), in sacks .
3,496
88
22
Pulp wood .
2,481
90
13
Fruit and vegetables .
325
109
16
(lak lumber .
64
120
16
Coke .
19,261
122
21
Sand, gravel, etc .
57
132
13
Miscellaneous forest products....
158
144
12
Plaster, sewer pipe, etc .
380
146
14
Pig iron .
2,486
147
17
Pine lumber .
215
150
14
('orn, shelled, in bulk .
1,050
151
11
Wood pulp, etc .
670
151
9
Hituminous coal, run of mine....
64.430
159
16
Iron and Steel billets, blooms
and ingots .
2,437
160
20
Manufactured iron and steel arti¬
cles . 5,081
170
19
Paper, etc .
.500
181
9
Tfay, in bales .
1,348
183
9
Salt, in sacks .
1.005
184
11
Sheep .
759
186
7
Lumber, not otherwise specified..
3,301
187
13
Steel rails .
1,236
190
21
Spruce lumber .
17
199
13
Petroleum products, in tank cars.
Agricultural implements .
478
210
16
229
214
10
Petroleum products, in barrels..
443
227
10
Pig lead, spelter, etc .
245
228
11
Feed, in sacks or barrels .
6.37
229
8
Beer and emptv bottles .
112
249
8
Cotton and Tobacco .
46
258
7
Packing house products .
Wheat, in bulk .
1,264
262
11
535
264
13
Flour (wheat, buckwheat, or rye)
1,370
272
0
Soda ash and bleach .
85
273
n
Sugar, in barrels .
1,392
307
10
Corn sirup .
13
314
6
(fiats, in bulk .
1,402
335
8
Cattle .
2,889
391
6
No. 8]
THE BLACK DIAMOND
143
Dried, smoked, or salted
meats . .
208
416
10
Dressed fresh meats,
in
refrigera
tor cars .
2,247
419
10
Copper bullion, bar.
ingots, pig
and slab .
676
4fi4
11
Hogs .
1,453
475
7
Average
freight
revenue per
loaded car-
mile, all
Average
freight
Carrier —
Haul
traffic
(Miles)
(Cents)
N. Y. C. & H, R. R.
Co
. .203.52
11.10
it. & O. R. R. Co..
. .197.53
14.24
B.. R. & P. Ry- Co. .
. .163.35
15.96
It. & M. R. R .
16.56
M. C. R. R. Co .
. .158.46
11.09
P.. C.. C. & St. L. Ry.
Co .
. .123.31
12.97
C. & A. R. R. Co..
12.52
I. C. R. R. Co .
. .242.56
11.11
L. & N. R. R. Co..
. .171.00
15.78
Virginian Ry. Co...
15.46
12.25
N. & W. Ry. Co. . .
. .270.81
12.98
Reading .
. . 99.59
19.43
D. & H. Co .
. .148.03
17.30
Lackawanna .
15.91
Frie .
. .166.42
12.93
Lehigh Valiev .
. .179.57
15.43
Pennsylvania .
. .160.02
16.11
N. Y., O. & W, Ry.
18.78
What Is a Fair Rate?
In an effort to find out what is a reasonable
rate, the commission then takes up the study of
the freight revenue per train mile on the anthra¬
cite carriers and on other groups of roads. It
calls attention to the fact that anthracite is
carried in full train loads and says :
“At the present effective rates, the revenue per
train mile on anthracite to tidewater is for the
Jersey Central $19.30, for the Lehigh Valley
$16.14, and for the Lackawanna $16.43. These
revenues are substantially higher than the aver¬
age train mile revenue as here shown.
Freight
TABLE B Revenue
per
Train-Mile.
Feight
A. C. L. R. R. Co . $2,696
B. & O. R. R. Co . 3.474
B. & M. R. R . 3.074
B. , R. & P. Ry. Co . 3.275
C. & O. Ry. Co . 3.471
C. & A. R. R. Co . 2.709
C., 1. & S. Ry. Co . 2.821
I. C. R. R. Co . 2.347
II. V. Ry. Co . 4.326
M. C. R. R. Co . 3.012
L. & N. R. R. Co . 2.205
N. Y. C. & II. R. R. R. Co . 3.028
N. & W. Ry. Co . 3.242
P., C., C. & St. L. Ry. Co . 2.770
Virginian Ry. Co . 4.567
Eastern district, 1912 . 3.12891
Southern district, 1912 . 2.48888
Western district, 1912 . 3.17357
United States, 1912 . 3.02284
1911 . 2,89548
1910 . 2.86218
1900 . 2,76450
1908 . 2,65307
“In comparisons of average car-mile and train-
mile revenues, the revenue derived by these car¬
riers from the transportation of bituminous coal,
being considerably lower than the anthracite rev¬
enue, reduces the average revenue to which an¬
thracite coal is compared. With the exception of
the Pennsylvania, and to a limited extent the
Erie, the bituminous coal tonnage of these re¬
spondents is received from their connecting lines
and their haul is but part of a long interline haul.
The average receipts per ton-mile derived by
these respondents and five other carriers from
coal are herewith shown.
TABLE
c
Anthra-
Bitumi-
Anthra-
Bitumi-
Carrier —
cite.*
nous.*
cite.f
nous.t
C. R. R. Co. of N. J. .
8.37
5.23
111.68
49.38
P. & R. Ry. Co .
8.82
3.67
105.14
131.18
D., L. & W. R. R. Co.
7.40
5.80
191.36
66.96
D. & H, Co .
7 54
142.42
L. C. R. R. Co .
7.11
6.0.3
177.15
158.35
P. R, R. Co .
5.99
^.27
129.57
218.22
N. C. Ry. Co .
6.02
3.88
63.05
80.78
Erie R. R. Co .
5.96
212.51
N. Y., O. & W. Rv. Co.
6.47
4.64
159.80
,81.57
N.Y.C.&H.R.R.R.Co. . .
4.59
3.63
159.37
212.55
B. & O. R. R. Co .
5.01
3.97
171.66
206.60
B., R. & P. Ry. Co . . .
4.94
4.15
95.07
176.68
M. C. R. R. Co .
.3.80
6.22
184.03
70.31
C., I. & S. Ry. Co....
2.84
3.88
93.03
104.18
^Average receipts per ton-mile. tAverage haul
of one
ton.
Empty Car Haul.
The railways had explained their rates largely
on the fact of a burdensome empty car haul. The
commission admits that this should he considered
and adds :
“It is therefore apparent that these various
elements of extraordinary expense, attributed to
the transportation of certain commodities, must
be considered from the standpoint of cost of
service and not by adjustments of average rev¬
enue.”
Cost of Carrying Coal.
This led the commission into a consideration
of what is the cost of service. The report, on
page 264, says :
"Briefly stated, the examiners found that the
operating cost of transporting anthracite coal to
tidewater by the Central Railroad Company of
New Jersey was 59.26 cents per long ton from
the Lehigh region (average haul, 120 miles), and
49.04 cents per long ton from the Upper Lehigh
region (average haul, 140 miles), making a
weighted average of 3.3 mills per short ton-mile
to the three tidewater termini of this carrier.”
"The Central Railroad of New Jersey costs
were computed for a railway line whose average
distance to tidewater is shorter than the average
haul of the other carriers. We have frequently
held that cost of service per ton-mile properly
decreases as the length of the haul increases.
In the short haul of the Central Railroad of New
Jersey there are included the assembling costs
and the terminal costs, which necessarily result
in causing a higher cost per ton-mile than would
result under similar operating conditions for the
lon.ger haul to tidewater of the other carriers.” _
The carriers objected to the commission’s basis,
which brought out the following statement from
Chairman McChord :
“The margin of profit on tidewater anthracite
is indicated by a comparison of the cost of trans¬
portation, 3.3 mills per ton (2,000 pounds) per
mile, with the average revenue here shown:
Carrier — ■
C. R. R. Co. of N. . .
L. V. R. R. Co .
N. Y., O. & W. Ry. Co . _ . v.; ' Y' A’ 'A . i
Erie R. R. Co, (including N. \., S. & W. R. R. Co. and
W.-B. & E. R. R. Co.) .
P. & R. Ry. Co .
D. , L. & W. R. R. Co . . .
P. R. R. Co. (including N. C. Ry. Co.) .
“The revenues per ton (2,000 pounds) per mile
on anthracite coal transported to Buffalo via the
various routes are here shown :
To Buffalo, Via Direct Route —
Lackawanna .
Lehigh Valley .
Erie (from Pittston group) .
Via Circuitous Routes—
Pennsylvania (from Wyoming region) . .
Reading via Newberry Junction and New 'LY
Ontario & Western (via Oneida and N. Y. C, & H. R. R. R.)
Delaware & Hudson (via Schenectady and New York Central)
is made up out of eastern freight revenue and
hence largely out of earnings on anthracite coal.
The commission says, on page 277 :
"The net corporate income of these carriers has
enabled them not only to pay the very substantial
dividends shown by these figures, but also to set
aside large amounts for the purchase of consid¬
erable property, and still have eonsiderable
amounts remaining to add to their surplus. The
aggregate of the items are here shown for the
ten years from 1904 to 1913 :
Additions to
Carrier — Dividends. Property. Surplus. §
C. R. R. Co. of N. T. .$26,335,828 $23,094,820 $10,043,883
F. & R. Ry. Co . 52,144,510 20,729,598 8,022,929
D. , L. & W. R. R, Co. 79,336,586 30,782,739 10,355,253
L. V. R. R, Co . 37,744,663 13,288,935 21,828,238
I), & 11. Co.* . 11,475,657 5,791,381
P. R. R. Co.f . 100,848,116 42,777,196 9,464,852
N. C. Ry. Co . 16,562,733 8,106,464 $3,147,047
Erie R. R. Co . 9,582,784 10,180,566 23,521.017
N. Y., S. & W. R. R.
Co . 883,337 572,495
W.-B, & E. R. R, Co .
N. Y., O. & W. Ry. Co. 10,754,448 1,048,397 212,356
*Figures are for three years, 1911 to 1913.
fFigures are for four years, 1910 to 1913.
tRepresents excess of dividends and additions to prop¬
erty over net corporate income.
§Remainder of net corporate income added to surplus.
-Aver. Rev. per Ton — — Av. Rev. perTon-Mile-
‘tverage
2,210
2,000
2,240
2,000
Haul.
Pounds.
Pounds.
Pounds.
Founds.
Miles.
Mills.
Mills.
140.58
$1,489
$1,329
10.59
9.45
157
1.484
1.325
9.45
8.44
209
1.447
1.292
6.92
6.18
169.90
1.407
1.256
8.28
7.39
185.70
1.338
1.195
7.21
6.44
147
1.300
1.161
8.84
7.90
221.43
1.347
1.203
6.08
5.43
-Prepared Sizes-
-Fea aijd Smaller-
Miles.
Rate.
Revenue
per
Ton-Mile.
Rate.
Revenue
per
Ton-Mile.
276
$1.7857
$0.00647
$1.5625
$0.00566
301
1.7857
.00593
1.5625
.00519
290
1.7857
.00603
1.5625
.00528
326
1.7857
.00548
1.5625
.00479
397
1.7857
.00449
1.5625
.00394
332
1.7857
.00539
1.5625
.00472
466
1.7857
.00393
1.6964
.00373
Investments of Carriers.
In further pursuit of a proper basis^ for rates,
the commission went into the suggestion of the
carriers that the investments in the roads should
he allowed a proper return. An elaborate dis¬
cussion of the point resulted in two paragraphs
summing the conclusions as follows :
“Property costs deduced from the old books
of these carriers are not reliable. The fault is
back of the books. This is well illustrated by
the cost of construction of the Port Reading Rail¬
road, which the carriers’ expert has ascertained
from its books to have been $3,025,000. This
railroad is of recent construction, being completed
in the year 1894. The commission’s examiners
found that the actual cost of constructing this
railroad was $1,525,000, and that the book cost
includes $1,500,000 representing a bonus payment
in securities to the construction company. Such
practices were so prevalent in railroad construc¬
tion in former years that we must regard prop¬
erty costs deduced from the old books as very
unreliable. ,
“The property costs per mile of line shown tor
the Erie Railroad are $199,832, and for the New
York, Susquehanna & Western Railroad, $200,213,
while for the Reading they are $157,732, and for
the Pennsylvania $180,543. Such property costs
for the New York, Susquehanna & Western,
whose terminal properties are very limited in
comparison with the other lines mentioned,
clearly indicate the unreliability of book costs as
representative of actual cost of property. Coun¬
sel for the carriers frankly admits the dubious
character of Erie property costs arising from the
book entries of such costs in 1895.”
Unproductive Betterments.
In this same connection, the commission has a
savage word to say about unproductive better¬
ments. It calls particular attention to the Penn¬
sylvania terminal in New York City, which cost
$114,900,000. This was supposed to be paid for
in part by the “Lines West of Pittsburgh,’^’^ which
is a joint beneficiary with “Lines East.” The
western lines have never paid either any part of
the cost of construction, nor have they done
anything to make up the annual deficit of $2,000,-
000 on its operation. On the contrary, this deficit
Lawson’s New Trial.
Denver, Colo., August ,17. — The United Mine
Workers of America today won two victories in
the legal war which has succeeded the strike of
Colorado coal miners. The state supreme court
granted a writ of supersedeas, preliminary to a
review of the John R. Lawson case, and at the
same time barred Judge Granby Hillyer from pre¬
siding at future trials .growing owt of strike dis¬
orders.
The Lawson supersedeas stays the execution of
the sentence of life imprisonment pronounced by
Judge Hillyer upon the labor leader after his
conviction of first degree murder at Trinidad last
May. Lawson still is in jail, the court having
deferred settlement of the question of admitting
him to bail.
By granting a writ of prohibition barrin.g Judge
Hillyer from hearing three strike trials at Wal-
senherg, attorneys believe the court has in effect
ended Hillyer’s connection with strike cases, as
the motion decided today was admitted to be a
test of the supreme court’s attitude toward the
jurist, who was charged with bias by reason of
having been an attorney for coal mining com¬
panies. Several hundred cases still are to be
tried in the Third judicial district, which includes
the coal minin.g fields.
Hillyer was appointed to the bench last spring
by Governor George A. Carlson, in compliance
with a law enacted at the last session of the legis¬
lature providing for an additional judge in the
Third district.
In barring Jud.ge Hillyer from hearing further
coal strike cases, the court said ;
“We are certain, from the facts alleged, that a
reasonable person might very properly conclude
that because of Judge Hillyer’s interest and activ¬
ity in a cause of similar character against active
associates of relators for similar offenses grow¬
ing out of the same alleged controveries . . .
that he has, within the meaning of the law, a bias
or prejudice that would in all probability prevent
him from dealing fairly with the relators as de¬
fendants.”
During the past week Ray Elder and E. C.
McKelvey opened up a new store at Pomeroy,
Ohio, for the Essex Coal Company. Mr. Elder
was formerly with the sales force of the Hocking
Valley Products Company.
144
THE BLACK DIAMOND
[August 21
Western Coal Rate Ruling of the Commission.
As outlined briefly in last week’s issue, the
Interstate Commerce Commission has handed
down its decision in the matter of “the proposed
increase in rates in the western classification ter¬
ritory.’’
The railroads, in 1910, asked certain increases
in rates. The commission refused to allow them.
In 1911 the request was repeated and the com¬
mission after an investigation has made two re¬
ports, of which the one here analyzed is the
second. The first report covered all railroads
east of Chicago and north of the Ohio and
Potomac river. The current decision embraces
lines west of Chicago and practically east of the
Rocky Mountains, extending from the northern
to the southern border.
The proposed increase in rates as suggested by
the railroads covered practically all classes of
rates and therefore practically all commodities.
The commission, as in the eastern case, granted
an increase in some rates but denied increases on
others.
Rate Changes Made.
The commission justified the increase proposed
by the carriers in the following instances :
In the minimum weight on carloads of grain
from 30,000 to 40,000 pounds.
On bituminous coal, except to South Dakota
points, and all rates on coke.
On brewers’ rice.
On carload minima from Gulf ports.
On carload rates on fruit. ^
On hay and straw not in excess of class O
r^tcs
The commission found not to be justified the
proposed increase in rates in the following cases :
Carload rates on grain.
Carload rates on live stock.
Carload rates on packing house products.
Carload rates on fertilizer and fertilizing ma¬
terial.
Carload rates on broom corn.
Rates on cotton piece goods, and carload rates
from points in Texas.
Scope of the Report.
The report of the commission covers in all 185
pages of print. It takes into consideration, first,
the general financial situation of the railroads as
to relation between investment and gross revenue,
operating cost and net revenue. This considers
the subject on the broad base of general average
rather than as a temporary matter. It compares
the average of western linp with the average of
eastern lines as to financial status and general
profitableness.
Then it comes down from the big to the smaller
questions and takes into consideration the rela-
■ tion of each commodity to the total volume of
freight. Also, it takes into consideration the
revenue from each commodity and its relation to
the total revenue of the road. The commission
even stops to consider all phases of the particular
commercial condition of those who produce and
ship or buy and sell these various commodities.
Next it takes into consideration the history of
the rates on each one of these commodities and
hence the commission’s previous rulings on cer¬
tain rates in certain of the territories involved.
It even considers the delicate point whether the
railroads by proper management and by intro¬
ducing proper economies could have avoided the
admitted loss in net revenue.
In a word, this voluminous and pretentious
report of the commission has tried to compre¬
hend the whole railroad situation and to set right
that which is wrong. It has tried to conform its
opinion to what under the disclosed circumstances
would be good public policy.
Since trained experts of the commission spent
more than a year in painstaking inquiry and since
those contributing to that report included the best
minds in the railroad service, in the employ of
shippers, and in the legal profession, it is no
simple task here undertaken when it is attempted
to reduce even so little as the conclusion of the
commission on coal down to a short and under¬
standable statement.
However, by attacking the problem a little at
a time, subdivisions of the report can so be stated
that the attitude of the commission can easily be
understood.
A Fundamental Difference.
For example, one of the first tasks of the com¬
mission was to come to understand the relative
positions and hence the relative earning power
of the lines in the eastern group and the lines in
It Was Proved the Carriers Need More
Money — Rather Than Tax Foodstuffs to
Supply It, Coal Is Given the Burden to
Carry.
the western group. In a general way, the differ¬
ence between these roads is simple and can be
thus expressed :
The center of population of the United States
is at a point about in the middle of Indiana. That
is, at a point about one-fourth the distance across
the continent there is the center of population.
This means that by far the greater percentage of
America’s 1 00,000, 000 live in the eastern district —
most of them north of the Ohio and Potomac.
Naturally the eastern group of railroads have
Western Rates.
This increase in rates will take ef¬
fect on September 30th.
The increase is, in some places, ten
cents a ton and in others five. The
average increase is 5.36 per cent, or
a little less than eight cents a ton.
The operators are organizing a
popular movement against the in¬
crease. The railroads are seriously
considering whether it is advisable
to take advantage of the increase
which the commission allowed. It
will not be possible for another week
to say definitely what effect this will
have on coal prices in the west.
more people to serve, therefore more things to
carry, hence a greater density of traffic and
naturally larger gross earnings per mile.
The lines in the western territory operate in
a district where the population begins to thin
out : therefore they have longer hauls, less peo¬
ple to serve, less things to carry, higher operating
expenses, lower density of traffic and, as a conse¬
quence, lower gross earnings per mile.
The commission expresses all this in a graphic
way when it says that on a group of eleven east¬
ern coal carriers the average freight revenue per
mile of road is $21,625 ; while on twenty-two so-
called western roads the freight revenue is $6,789
per mile, or less than one-third what it is in the
eastern territory.
Commissioner Daniels in his dissenting opinion
makes a big point of the fact that the western
railroads also use up a larger percentage of their
gross revenue for operating expenses than do
the eastern roads. In the case of the eastern
roads, in 1900, it cost the carriers 64.22 cents in
operating expenses to secure $1 of revenue, while
in 1913 the cost had risen to 71.77 cents. In the
case of the western railroads, in 1901, it cost the
carriers 63.97 cents to secure $1 of revenue while
in 1914 the cost had risen to 72.12 cents.
The commission found itself confronting a
need to allow the western railroads, which have
great operating difficulties and rising cost, to get
enough revenue to offset the facts of sparse
population, of long hauls and therefore of natur¬
ally high operating costs.
Bases of the Opinion.
Even so, and granting that the basic principles
of its inquiry were sound, it is difficult to under¬
stand why the commission, instead of granting a
general increase in rates, allowed the increase
only on a small number of commodities. Per¬
haps — and this is an assumption — that can be ex¬
plained only by taking up a few commodities, as
the commission has done, and by trying to find
why the commission decided to place a big bur¬
den upon one commodity such as coal and none
upon another, such as grain and packing house
products.
In this connection the commission’s decision on
grain is enlightening. It allowed the railroads to
increase the minimttm carload on grain from
30,000 to 40,000 pounds. That is, the commission
believes it is easy to load a car so that it will
carry 40,000 pounds of grain. The permitted in¬
crease in the minimum weight strove therefore
to compel the shippers to load cars to tfieir capac¬
ity. This relieves the railroads from pulling a
car which is only partially loaded.
The commission, however, refused to allow the
railroads to increase rates on grain. The reason
given by the commission for its decision on grain
rates is not convincing. That is, it stresses in¬
equalities in rates on wheat from Kansas City to
Chicago, Denver and Gulf ports. This is a con¬
troversy of twenty-five years standing. It says,
which is true enough, that the rates are not well
proportioned in that particular.
Also, the commission says that in the eastern
territory corn and wheat move at the same rate
while in the western territory each cereal has a
separate rate. The commission complains about
the double basis of cereal rates in the west. It
it is not justified in continuing two objec¬
tionable practices which it would, in effect, do
if it granted an increase.
What appears to be the real reason, which is
not brought out in the report at all, is very prob¬
ably as follows:
The known fact is that the nation depends
mainly for its supply of food upon this western
territory. The center of wheat and corn pro¬
duction for years has been gradually moving
westward. To allow an increase in the rates on
wheat and corn would therefore be to put an
extra tax on the food supply of the greatest per¬
centage of the American people, namely those
living"" in the east. The same thing, precisely, is
true of packing house products.
The commission says that it refuses to_ allow
this increase because of a technicality in the
manner of making the western rates. Its real
reason was perhaps political. It did not want to
increase the price of foodstuffs to people living
in the east.
Placing the Burden.
Still, the commission recognized that the rail¬
ways had to get more revenue. Therefore some
The commission inserts the following table in its report, which shows representative rates, in¬
cluding both those at present and those proposed :
REPRESENTATIVE BITUMINOUS COAL RATES ON WHICH INCREASES ARE PROPOSED.
From — „ .
Peoria, HI . P.*""
Peoria, HI . St- ^tiul Mii
— jjj . Huron, S. D
Miriii . Woonsocket,
Iowa .
Peoria
Duluth
D.
Duluth, Minn.
Girard, Ill.
Aberdeen, S. D...
Kansas City, Mo..
Centralia,' Ill . Madison Wis . ...
Milwaukee, Wis . Chamberlain, S* D.
Springheld, Ill . Sioux City, Iowa.
Cornell, Kans . ^ttf-.sas City^
Pittsburg,
Pittsburg,
Southern
Southern
Southern
‘Alabama
Kan . St. Joseph, Mo .
Kan . South Omaha, Neb.
Illinois group . .Alexandria, La.
Illinois group . Pine Bluff,
Illinois group . Brownwood,
mines . Brownwood,
New Mexico, Dawson district . Brownwood,
Colorado, Trinidad district . Brownwood,
Lehigh-Coalgate, Okla . Brownwood,
McAlester, Okla . Brownwood,
Calhoun, Okla . Dallas, Tex...
McAlester, Okla . Winfield, La..
Hartford, Ark . .Altus, Okla...
Hartford, Ark . Oklahoma Cit-/
Robinson, Colo . Amarillo, Tex.
Trinidad, Colo . Amarillo, Tex.
Ark. .
Tex.
Tex .
Tex .
Tex.
Tex.
Tex .
Distance,
Present
■' proposed i\ate - ^
Per Net
Miles.
Rate per Ton.
Per Ton.
Ton-Mile.
. 250
$1.70
$1.80
$0,720
. 462
1.50
1.60
.346
. 649
2.55
2.65
.393
. 524
2.55
2.65
.506
. 458
2.55
2.65
.579
. 305
1.80
1.90
.623
. 337
1.40
1.45
.430
. 622
3.40
3.50
.563
. 600
2.69
2.79
.465
. 139
.70
.75
.540
. 191
.90
1.00
.524
. 323
1.35
1.45
.449
. 645
3.82
3.92
.608
. 335
2.25
2.35
.701
. 368
2.65
2.75
.747
. 820
4.80
4.90
.598
. 831
3.75
3.85
.463
. 730
3.75
3.85
.527
. 368
• 2.65
2.76
.747
434
2.65
2.75
.634
. 388
1.25
1.35
.348
. 426
2.25
2.35
.552
430
2.35
2.45
.570
. 207
1.45
1.55
.749
. 297
3.00
3.10
1.044
. 256
2.75
2.85
1.113
‘Distance from Birmingham, .Ala., as given in W. W. Miller exhibit 4.
No. 8]
THE BLACK DIAMOND
145
commodities had to pay higher rates. One of
the commodities selected to carry this burden
was coal. That is, rather than taxing the food
supply of a densely populated eastern territory,
it decided to tax the coal supply of a sparsely
populated district. It chose the lesser of evils.
The commission says that in some cases the in¬
crease asked for was ten cents a ton; in others,
the increase asked for was five cents a ton. The
average increase is less than eight cents a ton.
The proposed increase amounts to 5.36 per cent
on the average, in the western territory on coal
rates. The average weighted haul on this coal is
303 miles. The average present rate is $1,483.
The Empty Car Haul.
In granting this increase, the commission took
into consideration a few general and a great
man)" specific conditions. One of the general
conditions was this: Ninety per cent of the cars
which move away from the mines with coal re¬
turn to the mines empty or travel the whole dis¬
tance back home without any load. This was
one of the big disputed points in the coal rate
case.
The railroads themselves presented that figure
of ninety per cent empty car haul. This, it will
be remembered, was vigorously assailed by F. H.
Harwood and other representatives of the coal
shippers. Mr. Harwood called attention to the
fact that the railroads consumed twenty-five per
cent of the coal and that the empty car haul
covers the movement on their own fuel as well
as the movement of commercial coal. That is,
the commercial coal shippers were being charged
with an empty car haul which should have been
charged against railroad business. The commis¬
sion apparently waved aside this objection of the
shippers and clung to the ninety per cent empty
car haul as representative.
Fluctuations in Tonnage.
Another general consideration is thus worded
by the commission :
“Between the month of lowest and the month
of highest density in this traffic there is a dif¬
ference of 89.73 per cent — greater than the dif¬
ference between the maximum and minimum ton¬
nage of any other particular kind of traffic. The
variation indicates that the movement is seasonal
and the fact that miners’ contracts are renewed
biennially, causing uncertainty in the production,
makes for heavy fluctuation in the volume of
traffic.”
This fluctuation, it might be added, is heavier
in the west than in the east. In the east the coal
movement changes direction and destination in
summer; in the west it falls off in volume. The
burden, expressed in idle cars, is heavier in the
west.
Another general consideration is thus worded
by the commission ;
“The cost incident to the assembling and diver¬
sion of coal is material but the exact measure
thereof cannot be determined from this record.
As pointed out in the general discussion of the
carriers’ financial situation, there has been a con¬
stantly increasing cost of maintenance of those
heavy coal cars, — a cost augmented by reason of
the injury caused by these heavy cars to other
lighter equipment.”
Another general consideration of the commis¬
sion was that the status of slack coal has changed
in the last few years. Formerly the commodity
had no value because it had a very limited use.
Then the railroads put in a lower rate on slack
than applied on lump coal and the commission
believes that, as a consequence, the market for
slack coal improved and therefore the value in¬
creased. The commission does not carry its rea¬
soning to the logical conclusion but rather seems
to assume that because slack coal has advanced
in price, the rates should stand the corresponding
increase.
Trend of Coal Prices.
The commission thus seems to assume that
because of the rise in slack coal prices the opera¬
tors are in a better position to stand an increase
than they were, although its evident assumption
here does not agree with its own statement of
facts. For example, on page 606 of the report
the commission says :
“Coal mined in the states here affected has
increased in value but little since 1904 and the
price, except in the states of Alabama and Ken¬
tucky, is given for the years 1904 to 1913 in the
subjoined table.
AVERAGE SELLING PRICE, ALL COAL FROM
MINES IN STATES SHOWN, 1904 TO 1913,
INCLUSIVE.
[Taken from bulletins, “Production of Coal,” by Edward
W. Parker, U. S. Geol. Survey.]
State— 1904 1905 1906 1907 1908
Illinois . $1.10 $1.00 $1.08 $1.07 $1.05
Indiana . 1.11 1.05 1.08 1.08 1.06
Missouri . 1.63 1.58 1.63 1.64 1.64
Iowa . 1.61 1.56 1.60 1.62 1.63
Kansas . 1.52 1.46 1.49 1.52 1.49
Oklahoma . 1.82 1.76 1.02 2.04 2.03
Arkansas . 1.54 1.49 1.61 1.68 1.08
Colorado . 1.31 1.22 1.26 1.40 1.41
New Mexico . 1.31 1.33 1.34 1.46 1.37
State— 1909 1910 1911 1912 1913
Illinois . $1.05 $1.14 $1.11 $1.17 $1.14
Indiana . 1.02 1.13 1.08 1.14 1.11
Missouri . 1.65 1.79 1.72 1.76 1.73
Iowa . 1.65 1.75 1.73 1.80 1.79
Kansas . 1.44 1.61 1.53 1.62 1.67
Oklahoma . 2.00 2.22 2.05 2.14 2.05
Arkansas . 1.48 1.56 1.61 1.71 1.76
Colorado . 1.33 1.42 1.45 1.49 1.52
New Mexico' . 1.29 1.39 1.44 1.42 1.46
“A shipper gave the prices paid by five rail¬
roads for their fuel coal 1910-1914 as somewhat
higher than the prices shown in the foregoing
table ; and it appears that one of the carriers is
paying the same for coal as in 1910, two slightly
more, and two slightly less. The relative density
of all traffic hauled by representative eastern and
western roads appears from the following table :
FOR YEAR ENDED JUNE SO, 1914.
Tons of
,, eight car¬
ried 1 mile
Eastern bituminous coal
Average Freight :
miles op- revenue
erated dur- per mile
originating roads —
ing year
of road
Pennsylvania Co .
. 1,749
$25,518
Pennsylvania R. R .
. 4,083
31,407
Baltimore & Ohio .
. . 4,478
16,922
Hocking Valley .
. 351
15,935
Norfolk & Western .
. 2,035
18,683
Chesapeake & Ohio .
. 2,345
12,305
Buffalo, Rochester & Pittsburgh. 581
15,742
Toledo & Ohio Central. .
. 446
9,817
Kanawha & Michigan. .. .
. 176
15,031
Bessemer & Lake Erie..
. 204
38,903
Pittsburgh & Lake Erie.
. 223
67,925
Unweighted average. . .
21,625
road
4,448,369
5,430,286
2,997,966
3,742,321
4,497,010
3,011,617
3,405,126
2,366,937
3,739,955
8,564,706
9,043,294
4,100,550
FOR YEAR ENDED JUNE 30, 1914.
Western and southwestern bitu¬
minous coal originating roads —
Atchison, Topeka & Santa Fe. .
.8,345
7,139
706,150
Chicago & Alton .
.1,033
8,595
1,417,388
Chicago, Rock Island & Pacific.
.7,729
5,478
639,184
Chicago & Eastern Illinois .
.1,283
8,825
1,724,429
Chicago, Burlington & Quincy.
.9,139
6,871
942,339
Chicago & North Western .
.8,070
6,689
771,930
Chicago, Milwaukee & St. Paul. 9, 683
6,739
834,338
Chicago Great Western .
.1,496
6,645
911,648
Illinois-Central .
.4,768
9,200
1,633,461
Minneapolis & St. Louis* . .
, .1,646
4,338
516,390
Wabash .
.2,514
8,032
1,320,933
Cleveland, Cincinnati, Chicago
&
St. Louis .
.2,187
10,337
1,896,495
Vandalia .
. 910
8,326
1,275,451
Chicago, Terre Haute & South-
eastern] .
5,109
887,354
Missouri Pacific .
.3,919
4,972
609,465
St. Louis, Iron Mountain
&
Southern .
.3,364
7,282
926,024
St. Louis & San Francisco .
.4,746
6,037
613,127
Missouri, Kansas & Texas .
.3,824
5,288
483,838
Kansas City Southern .
. 827
9,963
1,284,810
Colorado & Southern .
.1,127
4,986
481,034
Midland Valley .
. 380
2,745
226,229
Missouri, Oklahoma & Gulf....
. 334
2,623
350,095
Unweighted average.
6,789
881,642
‘Passenger mileage operated, 1,585 miles.
[Passenger mileage operated, 207 miles.
The Twin Cities Rate.
In detail, one of the principal points in dispute
was the rate on coal from Illinois and Indiana
mines to the Twin Cities — St. Paul and Minne¬
apolis. The carriers serving Indiana and Illinois
had proposed an increase in this rate from $1.50
to $1.60. The carriers moving coal from the
Lake Superior docks to the same point did not
propose an increase. The coal shippers protested
that if this unequal advance were allowed the
western mines would be driven out of that terri¬
tory.
The commission, in this particular instance,
took several things into consideration, but failed
to consider the vital point of it all.
In the first place, and on broad grounds, it
said that a regulating body could not name a
rate which would give a shipper an opportunity
to sell in a certain market if that were the only
consideration. In substance, it said that the car¬
rier might do that if it liked, and even quoted
the chief justice of the United States Supreme
Court on that point, but it said that the com¬
mission had no power to make a rate which would
do that thing, provided the rate was less than the
traffic’s proportion of the cost of the service.
In this connection it gave the following terse
history of the rates from the western mines to
the Twin Cities :
Year Rate per ton
1887 . $2.00
1889 . 1.75
1892 . 2.00
1896 . 1.62]^
1899 . 1.65
1902 . 1.40
1903 . 1.50
1904 . 1.40
“The $1.40 rate remained effective until, in
obedience to an order of this commission regard¬
ing a rate to the Twin Cities no higher than to
intermediate points, the carriers increased the
terminal rate to $1.50. The increase was sus¬
tained by us in Daly Coal Company vs. Chicago
& Alton Railway Company, 33 I. C. C., 467. In
the present case it is proposed to increase this
rate to $1.60.”
In the second place the commission considered
the Twin Cities as a part of the general group
including Wisconsin, Iowa, Minnesota and South
Dakota.
“We are of the opinion that the territory
affected should properly be considered as one.
When so considered, while there have been fluc¬
tuations, the present rates are no higher than
they were ten years ago.”
Later on, the commission says, in what is per¬
haps its most adroit point of the whole Twin
Cities case :
“From lake ports in Wisconsin and Minnesota
to intrastate points in those states no increase is
proposed in the rates on dock coal. It is claimed
that injury will result to the coal miners of
Illinois unless increases in coal rates are made
from the docks commensurate with the proposed
increases from the mines in that state. Illinois
coal is said to be somewhat less attractive to
users than is coal from the Pittsburgh district,
but the Illinois coal can be sold more cheaply
than the Pittsburgh coal. Details of the cost of
each at the representative consuming markets of
St. Paul and Minneapolis were shown by protest-
ants in a table here inserted.
“The following is a comparison of prices for
coal delivered at St. Paul and Minneapolis, the
largest coal markets west of Chicago :
From Pittsburgh, Pa., district—
Coal at mines . $1.25
Average freight charges to Lake Erie ports . 75
Loading to vessel . 05
Lake freight Erie to Superior . 32
Dock charges at Superior and Duluth . 40
Freight from Superior and Duluth to Twin Cities.. .96
Total . $3.73
Illinois coal —
Average selling price at mines (10 years) . 1.10
Present average freight charges from State of
Illinois . *1.93
Total . $3.03
‘Margin to cover difference in quality . 70
“From other facts of record it appears that past
increases in rates from Illinois without corre-
sp:)nding increases in the rates from the docks
have resulted in relatively lessening the amount
shipped from the Illinois mines. Since the rates
from the docks at Milwaukee to points in Wis¬
consin and rates from Duluth to the Twin Cities
remain unchanged, some carriers maintain exist¬
ing related interstate rates.”
In other words, the adroit argument of the
commission is that the western operators cannot
complain about this increase in rates to the Twin
Cities unless they are willing to admit that the
intrinsic value of eastern coal is more than
seventy cents a ton greater than western coal.
The vital point left out of consideration is : The
price quoted on eastern coal is on the size bought
and used in the Twin Cities. The price quoted
on western coal is an average of all sizes of all
mines whereas only the larger sizes from assorted
districts sell there and they demand higher prices
than those used as a basis.
On the South Dakota case, which is one of
considerable dispute, the commission makes its
own point in the following paragraph :
“To South Dakota destinations an increase of
ten cents per ton is proposed in the rates on
bituminous coal from Lake Michigan and Lake
.Superior ports, as well as from Illinois mines.
No increase is proposed from any of the lake
ports to Minnesota destinations. The present
rates from the lake ports to South Dakota des¬
tinations are on a higher per ton-mile basis than
rates to intermediate destinations in western
Minnesota. An increase in the rates to South
Dakota destinations would accentuate the exist¬
ing violation of the general principle that the
ton-mile revenue should decrease with increased
distance. The present rates to South Dakota
destinations appear to be on a higher bases than
to other western destinations, although the
greater part of the haul is through the lower
rated territory. For these reasons the increases
proposed to South Dakota destinations have not
been justified.”
After this rather elaborate presentation of
facts and assumptions, the commission concludes :
“From the facts of record we are of the
opinion and find that, with exception of rates on
coal from points in South Dakota, the proposed
increase on rates in coal have been justified and
the orders of suspension relating thereto will be
vacated.”
146
THE BLACK DIAMOND
[August 21
Rates on Coal
The second preliminary bout in the effort
to force a general revision and reduction of
Ohio coal transportation rates, within that
state, was begun before the Ohio Utilities
Commission on August 17th. A recess had
been taken to that date from August 6th to
permit time for better preparation on both
sides.
There was a formidable array of attorneys
when the session was called together in one
of the hearing rooms of the county court
house — a makeshift place of meeting — at Co¬
lumbus. Few coal men from over the state
were present, but a number of prominent com¬
panies were represented by counsel.
The anticipated trend of events was evident
when Judge George B. Okey, chief attorney
for the plaintiffs, the Ohio United Mine Work¬
ers, took a place in the background, and a
corps of legal lights, presumably on behalf of
the Sunday Creek Company, assumed charge
of the prosecution. Tliey comprised George P.
Boyle of Chicago, formerly connected with
the Interstate Commerce Commission; Messrs.
Hillman and Hopkins of Chicago, the former
a rate expert whose testimony four years ago
played a prominent part in the lowering of
Hocking Valley commercial rates to Toledo;
and Harry Arnold of Columbus.
Attorneys for various other coal companies,
whose attitude for the time being would seem
to be at least technically against the plaintiffs,
grouped themselves with railroad counsel.
At the previous hearing, which covered parts
of two days, the Hocking Valley railroad had
refused the request of the plaintiffs to produce
in court documents and records showing ex¬
pense of hauling coal from the Nelsonville as¬
sembling yards to Toledo. The commission
afterwards issued subpoenas requiring the offi¬
cials to come into court with such evidence.
As soon as court opened this began to arrive
by the truck-load, there being almost enough
of it, finally, to fill a freight car.
The attitude was taken by counsel for the
plaintiffs that the submitting of records in this
volum.inous form was for effect, and that what
was desired was condensed records instead of
the original way-bills and the like. J. F. Wil¬
son, chief counsel for the Hocking Valley,
stood upon the broad grounds of the subpoena,
which designated subsidiary records as being
among the kind asked for. Mr. Wilson stated
that the documents submitted consisted of per¬
haps 5,000 separate papers. He took the de¬
fense that the subpoena had been vague in is
terms and that the company had complied in
the most liberal form possible. The greater
part of the day was taken up in the discussion
of the character and completeness of the docu¬
ments. The plaintiffs tried to make it appear
that they were submitted in a spirit of ridi¬
cule and with the idea of confusing and ham¬
pering proceedings. The railroad officials de¬
fended themselves at length against these
charges.
The Big Point.
C. H. Sisson, trainmaster of the Hocking
Valley railroad at the Nelsonville yards, was
placed on the stand by the prosecution and in¬
terrogated as to the portion of the documents
his department had submitted, and these were
checked off into a group by themselves. In
the hour or more which Mr. Sisson held the
witness stand testimony was brought out to
show what part through freight from the south
played in the record of cars handled at the
Nelsonville yards.
This showed the drift of the proceedings,
namely, that the old question of the difference
charged for hauling Hocking Valley coal to
Toledo and coal received at Armitage junc¬
tion from West Virginia for the same point
was to be the cornerstone of the whole rate-
reduction fight.
In answer to the direct question of Chairman
Waltermire, of the commission, it was stated
that the evidence submitted in the earlier
stages of the case at least was to pertain
wholly to the Hocking Valley coal field. This
revealed the additional fact that the Sunday
Creek Company, by reason of its great im¬
portance in this field, was the corporation
chiefly interested.
The chairman thereupon took the ground in
effect that the standing of the United Mine
Workers as the supposed plaintiffs in the case,
with all coal-carrying railroads of the state
in Ohio Are Being Challenged.
The United Mine Workers of Ohio Begin
the Action, But the Sunday Creek Com¬
pany Announces It Will Take Action
Now or at a Later Date.
defendants, was no longer logical. He ruled
that the Sunday Creek Company, if it proposed
to intervene in the case, should make its plead¬
ing. It was given until Wednesday to take
such action.
Sunday Creek Takes a Stand
Mr. Boyle, who was the mouthpiece of the
prosecution throughout the day’s session, .
stated that the Sunday Creek Company would
back up the miners in their contention; that
it had a case with the Hocking Valley railroad
which it proposed to fight out, either in the
case brought by the miners or one which it
would bring itself.
Judge Okey, of counsel for the miners, made
a plea in their behalf to the commission, citing
the inability of his clients in their present im¬
poverished condition to employ rate experts
and otherwise carry on a prosecution, and sug¬
gested that the commission itself prosecute the
matter of rate reform. He urged this on be¬
half of the people of the state at large. The
commission refused to entertain this sugges¬
tion, stating that it had properly come before
the last legislature and that body had refused
to take the matter up.
At the afternoon session, the question as to
the character of the documents submitted and
which were yet to be submitted by the Hock¬
ing Valley railroad were again taken up.
Counsel fdr the prosecution wanted to ignore
what was termed the rubbish that the company
had carted into the court room and go at
once to the condensed records. The plan was
that its rate expert, with his assistants, should,
with the aid of one of the railroad company’s
officials, go through the company’s records at
the general offices.
Strenuous objection was raised by Chief
Counsel Wilson. First he claimed that any¬
thing produced or shown, without being
specifically authorized by the commission,
would be in violation of the Interstate Com¬
merce Commission rulings, as giving investiga¬
tors opportunity to learn matters that would
be to the benefit of the coal company they
represented as against competing companies.
Further, he stated that an experience of a
similar nature several years ago had resulted
in the experts being in the offices of the rail¬
road company for two months, to the ineon-
venience of employes and officials.
He claimed that the Hocking Valley railroad
had nothing to conceal in the matter of an in¬
vestigation, but did not want it conducted ac¬
cording to the plan proposed. The chairman
of the commission suggested a compromise
plan, but as neither side would agree to it, he
ordered the hearing to proceed.
A large part of the afternoon was taken up
with the further examination of General Man¬
ager Connors, of the Hocking Valley, who was
on the stand when the recess occurred ten days
ago. It was wholly of a technical nature, with
regard to the completeness of the documents
which had been placed in evidence. Mr. Con¬
nor stated that there would be a further in¬
stallment of documents on Wednesday. The
impression was given that more condensed
records would be submitted. Auditor F. D.
Hodgston, who had just returned from a three
weeks’ absence, and was on the stand during
the day, was given until Wednesday to pro¬
duce documents from his department.
Before adjournment for the day, Mr. Boyle
stated that after the additional documents were
in and checked up, the prosecution would ask
for a postponement until the whole could be
tabulated. He estimated that it would prob¬
ably require five weeks, whereas if the rail¬
roads would consent to examination of general
offiee records the work could be done in three
weeks.
Are Other Roads Involved?
Mr. Denison, of Cleveland, attorney for the
Wheeling & Lake Erie, asked Mr. Boyle if the
prosecution proposed to attack the rates of
other roads after it got through with the Hock¬
ing Valley. To this Mr. Boyle replied that
they were only crossing one bridge at a time.
During the session, Mr. Ginn, of Cleveland,
representing the Ohio & Pennsylvania Coal
Company, and other operators not named,
stated that the middle distriet would not inter¬
vene on the basic question of lowering rates.
They had qualified as parties to the action so
as to be in a position to have a part in it
should developments warrant, but this part
would be simply that of differentials.
As the matter stands at present, the fight is
between the Sunday Creek Company and the
Hocking Valley Railway Company, and the
outcome will be awaited by other operators as
a test. If Hocking rates are reduced to any
extent it is believed that every district will
get into the fight to preserve existing differ¬
entials among Ohio fields.
Wednesday’s Session.
When the commission reconvened at 1:30
p. m., Wednesday, Mr. Boyle stated that a
conference between Mr. Hillman, the rate ex¬
pert, and the railroad officials had established
just what additional records the plaintiff would
insist upon. No agreement, however, had been
reached by which the railroad was to furnish
these records or in what form.
As eighty-five per cent of them would come
from the auditor’s department. Auditor Hodg¬
ston was again placed upon the stand. Ques¬
tions as to the producing of the additional
records and what they would contain as to
easily-available information did not bring out
replies satisfactory to the plaintiff. Mr. Boyle
stated to the commission that it would be a
waste of effort to put other officials of the
road on the stand, and that the plaintiff could
go no further until it had all the documents
in hand that had been promised to be sub¬
mitted and compilation made from same. If
was his suggestion that the hearing be ad¬
journed over to some date that would give
time for this work.
Upon inquiry by Chairman Waltermire, Mr.
Hillman stated that the compiling would re¬
quire about three weeks, and ten days addi¬
tional time should be allowed for counsel to
make its deductions. At this point Chief Coun¬
sel Wilson, on behalf of the railroad entered
protest against the several tons of documents
which had and were to be submitted, remain¬
ing in the custody of the plaintiff’s attorneys
for that length of time. It would be an in¬
convenience to the company to be deprived
of their use. Again, they would reveal private
information which was not pertinent to the
case. Such custody and use of the documents
would amount to nothing less than search and
seizure and violated the constitutional rights
of the company.
The commission held that the plaintiff had
an unquestioned right to examine records in
support of its case. The commission had tried
to get plaintiff and defendant together on
some plan of examination that would be mu¬
tually satisfactory. Having failed in this, it
was within the province of the commission to
provide a plan.
Mr. Wilson persisted in his objections, on
three grounds. First, the request of the plain¬
tiff was unreasonable, and contrary to a fed¬
eral court decision which was cited. Second,
while the defendant was willing to produee
any record for the information of the commis¬
sion as a tribunal, it made a distinction when
records were to be turned over to a plain¬
tiff in an action against the company, allow¬
ing such plaintiff to make promiscuous use
of them. Third, the competency of the pro¬
ceeding was called into question, inasmuch as
it was an intervening and not the original
plaintiff making the demand, and further the
Hocking Valley Railroad Company, as the de¬
fendant upon which action was centered in
the new phase of the ease since the Sunday
Creek Company had usurped the place of the
United Mine Workers as plaintiff, was not
amenable, because the new coal tariff recently
filed by the company had not been in force
one 3'ear and was, therefore, not subject to
attack.
The commission ruled that the intervention
of the Sunday Creek Company did not change
the nature of the ease that had been filed by
the United Mine Workers, and that the ac¬
tion of that plaintiff was still in force. A con¬
cession was made the railroad by the chair-
( Concluded on page 149.)
No. 8]
THE BLACK DIAMOND
147
Increased Anthracite Rates to Chicago Allowed.
Early this week the Interstate Commerce Com¬
mission approved of the increased rates on an¬
thracite proposed some time ago. The increase
is twenty-five cents per ton. This is the rate
which became effective on July 17 by the expira¬
tion of the time limit on the second order of
suspension. The report made by Chairman Mc-
Chord was as follows :
“The tariffs under investigation in this proceed¬
ing were filed by respondents to become effective
May 20 and May 29, 1914, but were suspended
by the commission until March 17, 1915, upon the
protest of dealers in anthracite coal in the city of
Chicago and in the states of Iowa and Nebraska.
Subsequently respondents voluntarily suspended
the operation of the schedules until July 17, 1915.
The report in this matter was held up pending
the report on the Rates for Transportation of
Anthracite Coal, 35 I. C. C., 220, and the rates
here involved have automatically gone into effect
with the expiration of the suspension period.
“This investigation involves the reasonableness
of the proposed Increase of twenty-five cents per
gross ton in the rates for transporting anthracite
coal, ‘prepared sizes,’ all rail in carloads from
the anthracite mines in northern Pennsylvania to
Chicago and Chicago rate points and to points of
connection between eastern and western lines near
Chicago, such as Joliet, Kankakee, Griffith, and
others, and to the other points of connection be¬
tween such lines, Peoria, East St. Louis and St.
Louis.
“The effective rates and the proposed increased
rates per net ton and per gross ton from the
mines to the points indicated are as follows :
Effective Rate-^u^Proposed Rate — ^
Gross Net Gross Net
Destination — Ton. Ton. Ton. Ton.
Chicago and Chicago
rate points . $3.50 $3.12 $3.75 $3.35
Peoria . 3.75 3.35 4.00 3.56
St. Louis and East
St. Louis . 4.00 3.56 4.25 3.79
“The all-rail movement of anthracite coal to
Chicago is annually about 2,500,000 tons, and the
movement by water in 1913 was 1,083,712 tons.
“The proposed increases apply to all-rail ship¬
ments to points west of Chica.go to which there
are no through rates from Buffalo. Except to
Mississippi river points, there are no through
rates from Buffalo to points west of Chicago.
The proposed increases do not affect the territory
which extends from Chicago west to the Missis¬
sippi river, south to St. Louis and Cairo, and
north to Quincy, except a few points to which
there are now through rates, such as Peoria, East
St. Louis and St. Louis. To Quincy and to the
Mississippi river crossings north, the increase of
twenty-five cents applies. The rates to the lower
Mississippi river crossings below St. Louis are
not affected.
“Through rates are effective on all of the lines
from the mines to Chica.go and to Chicago rate
points and to Peoria, East St. Louis and St.
Louis. Of the through rates, $1.75 formerly con¬
stituted the division accruing to the trunk line
carriers for the haul from the mines to Buffalo
as opposed to the local rate of $2 on all lines for
that haul. But to points intermediate to Chicago
and to other points in Ohio, Indiana and Michi¬
gan, to which no through joint rates apply, the
rate applicable is made by the combination of the
local $2 per gross ton rate from the mines to
Buffalo and the local or reshipping rate from
Buffalo west to destination, by which combination
there is broaght about a freight charge of twenty-
five cents a gross ton more to those points which
commonly take the same rate as Chicago than the
former joint through rate to Chicago.
“Anthracite coal is not sold f. o. b. at the mines,
but at such a price per net ton in Chicago as
preserves to the producer of coal the advantage
of the twenty-five cents, so that the producer
realizes more profit on the through shipments to
Chica,go than on the local shipments to Buffalo
or on the through shipments to points between
Buffalo and Chicago. The service at Buffalo is
the same as to coal hauled to Buffalo consigned
to Chicago at the proportional charge of $1.75
as to coal hauled to Buffalo consigned to points
west in Ohio, Indiana and Michigan. The Penn¬
sylvania Railroad Company and its affiliated line,
the Pennsylvania Company, hereinafter referred
to as the Pennsylvania, published no throu.gh rate
via its Buffalo route. The Erie Railroad Com¬
pany and the Chicago & Erie Railroad Company,
operating jointly, hereinafter together referred to
as the Erie, maintain only one rate to Buffalo,
which is $2, regardless of the destination of the
shipment all rail. The Erie, since this proceeding
was begun, established through rates of $3.50
from the mines to Chica.go and $4 from the
mines to East St. Louis and St. Louis via Buffalo
and the Niagara frontier, not having heretofore
published such a rate, but expects to file a tariff
increasing these rates to $3.75 and $4.25, respec¬
tively, in line with the general policy of re¬
spondents as disclosed on this record. The mean
distance from the mines to Buffalo on the Erie
Railroad is about 288 miles. From Buffalo to
Chicago the short-line distance on that railroad
is about 550 miles.
“The record deals primarily with Chicago con¬
ditions and the rates to Chicago, because the
Protestants who appeared at the hearing were
coal dealers either at Chicago or at points to
which the rate is a combination of the rate to
Chicago and the rate from Chicago to the place
of destination.
“The entire increase of twenty-five cents is
apportioned as compensation for that part of the
through haul between the mines and Buffalo on
shipments via Buffalo on the lines running to
Buffalo, so that on such shipments carriers will
receive no increase for that part of the through
haul between Buffalo and the named points of
destination, and the rate to Buffalo will be uni¬
formly $2.00, regardless of the destination of the
shipments. But as to shipments moving west, not
via Buffalo, over the Erie or Pennsylvania rail¬
roads, which extend by their own rails from the
mines to Chicago, the increase is necessarily
apportioned over the entire mileage from the
mines to Chicago.
“Respondents assert that they have proposed
the increased rates in view of a complaint that
certain discriminations against dealers in and con¬
sumers of anthracite coal in Ohio, Indiana and
Michigan have been created by the effective rates.
Protestants admit the existence of the alle.ged
discrimination, but insist that the only proper
way to remove it is by a reduction of the rates
to points in Ohio, Indiana and Michigan, as to
which it is alleged that the Chicago rate is un¬
justly discriminatory, it being urged that the in¬
creased rates are unreasonably high.
“This issue is determined by our finding in the
Rates for Transportation of Anthracite Coal,
supra, where a rate of $2 per gross ton was
found to be unreasonable for the haul from the
mines to Buffalo. Nothing has been made to
appear here that would warrant our requiring the
trunk-line carriers to accept less revenue on the
transportation here involved than they receive on
like transportation to the intermediate points in
Ohio, Indiana and Michigan. Whether or not the
rates under consideration are properly divided be¬
tween the carriers east of Buffalo and those west
thereof is a matter not raised on this record.
“The rates here involved have been justified.”
Control of Europe’s Coal.
Several of the daily newspapers in America
printed on Sunday, August 15, some statistics on
the coal supply of Europe, emphasizing the
change in the situation brought about by the one
year of war.
F. R. Wadleigh, the well known coal engineer,
makes some timely comments on the newspaper
articles, which bore a London date line, in the
following letter to the New York Times:
“Your London correspondent, in today’s issue,
gives incorrect figures as to the coal output of
the European countries. Taking the figures for
1913, a normal year, the output of the various
European countries, in short tons (see U. S.
Geological Survey reports. Colliery Guardian,
Iron and Coal Trade Review, Stahl u. Eisen,
United Kingdom Board of Trade reports) were
as follows, as against the output given in your
columns :
Un-te'l Kingdom .
France .
Belgium .
Russia (all) .
1913
. 321,922,000
. 25,322,000
. 37,335,000
Times
Figures
236,000,000
35,000,000
22,000,000
*15,000,000
Total .
*Polaud.
Germany .
Austria-Hungary .
. 429,379,000
. 312,062,000
308,000,000
175,000,000
42,000,000
Total .
. 374,046,000
217,000,000
“There were also 9,915,000 tons produced by
the smaller countries, making the European total
813,348,000, of which allied countries produced
52.8 per cent ; Germany and Austria, 46.0 per
cent, and other countries, 1.2 per cent. Your cor¬
respondent’s figures were : Allied countries.
sixty-five per cent; Germany and Austria, thirty-
five per cent.
“Another table is given in your correspondence
showing “The coal conditions since Germany’s in¬
roads on the coal fields of Belgium, Flanders, and
Poland” as follows:
United Kingdom total . 175,000,000
Germany . 175,000,000
Austria-Hungary . . 42,000,000
France . 35,000,000
Belgium . 22,000,000
Poland . 15,000,000
“Your correspondent says that today German
occupation has given them the Belgium coal
fields, the Pas de Calais fields of France, and the
chief coal fields of Russia, located in Poland,
those of the Caucasus being minor in compari¬
son ; he fails to mention the Donetz field of Rus¬
sia or the southern field of France.
“Based on this statement, the entire coal out¬
put of E’rance is placed on the German side, also
what is stated to be that of Poland, no allowance
being made for any other output of coal in
Russia.
“Now as regards France, the normal (1913)
output of its southern coal fields, which are not
in Germany’s hands, was 14,000,000 net tons; this
amount should be credited to the Allies.
“Then, not more than one-half of the northern
coal fields are in German hands, according to our
consular reports, so that we should add to the
Allies’ resources one-half of the northern field
output of 30,800,000 net tons.
“Of Russia, the largest coal fields are not in
Poland, but in southern Russia, the Donetz
Basin, as it is called. In 1913 the output of the
Poland (Dombrova) district was 7,714,000 net
tons, not 15,000,000, while the output of southern
Russia was 26,880,000 net tons, which should also
he credited to the Allies, as well as the small
amount from the other fields, making a total of
29,621,000 net tons.
“Reconstructing the table showing war condi¬
tions, we have :
United Kingdom . 321,922,000
France . 29,400,000
Russia . 29,621,000
Total . 380,943,000
Germany . 312,062,000
.'V'.istria-Hungary . 61,984,000
Belgium . 25,322,000
France . 15,400,000
Poland . 7,714,000
Total . 422,482,000
( ^1*.
Allies . 46.9 per cent
Germany and Austria . 51.9 per cent
Other countries . 1.2 per cent
“However, such calculations, based on normal
conditions, are of doubtful value now, when the
output of all the European countries at war, no
matter in whose hands the coal fields are, have
decreased from thirty-five to seventy-five per
cent. It is the countries that are able to mine
sufficient coal for their own needs and those of
their allies that are ahead of the game, regardless
of what might have been the case before the war.
“Great Britain and Germany are each mining
about sixty-five per cent of their normal output,
but the former had an export tonnage of 85,000,-
000 net to divert to home consumption, as against
Germany’s 34,000,000, and the normal consump¬
tion in Germany was about 286,000,000 tons, as
against Great Britain’s 212,000,000.
“Wherever the preponderance of coal output in
Europe may lie, the whole situation is full of
promise to our coal operators. Neutral coun¬
tries, as well as those at war, must have coal; if
the latter cannot supply more than their own
needs, the former must come to the United States
for the coal needed above their own output.
“F. R. WADLEIGH.”
Philadelphia, August 7, 1913.
The Link-Belt Company is sending out to the
trade a most complete general catalogue, which
not only exhibits the full line of elevating and
conveying machinery and accessories, but power
transmission machinery and engineering installa¬
tions as well. The catalogue is known as Gen¬
eral Catalogue No. 110 and is invaluable to the
purchasing and engineering departments of a coal
company. Not figuring the value of the technical
matter contained in this book, the company is
spending close to $40,000 on this edition. The
book is finely bound, printed on an excellent
grade of paper and contains 576 pages of sub¬
ject matter. A copy of this will he furnished to
the readers of The Black Diamond on applica¬
tion to the Link-Belt Company, Chicago.
“Chan” Lemmon, of the Chicago, Wilmington
& Franklin Coal Company, was in the Twin
Cities for several days this week, pushing the
sale of “Orient” coal.
148
THE BLACK DIAMOND
[August 21
Bids for and Contracts Let on Coal.
Specifications Unpopular.
'I'hat the new specifications under which the
city of New York is now buying its coal are not
popular is shown by the bidding on the Board of
Education tenders for buckwheat and bituminous
coal, which were opened on Monday, Au.gust 2d.
It will be recalled that there were but three bid¬
ders on Manhattan deliveries, two on the Bron.K
deliveries, six on Brooklyn and five for the
Queens.
It will be recalled that about two or three
months ago, when the Central Purchasing Com¬
mittee asked for bids on about a quarter of a
n\illion tons of coal, that there were around thirty
bidders.
Most of the New York retail and wholesale
coal men who make a specialty of city business
complain that the new specifications are too dras¬
tic, and that coal does not exist that will harmon¬
ize with the new requirements and enable the coal
suppliers to get out whole unless an enormous
profit is tacked onto the prices that are submitted.
Sizes of Coal.
“Not less than ninety (90) per cent of all sizes
of anthracite coal shall pass over the minimum
screen, and not less than ninety (90) per cent of
broken, egg, stove and chestnut sizes shall pass
through the maximum screen given in the fol¬
lowing table. Tests for sizes will be made with
standard screens using the customary laboratory
methods. Greater variation in the sizes of coal
shal' constitute cause for rejection:
Barnes of Sizes of Coal— Inches.* * Inclies.f
Broken .
Eee . 3 2
Sfole': . 1/4
Chestnut . 1/
Pea . H /
Buckwheat No. 1 . / A
Buckwheat No. 2 . 54 A
Buckwlieat No. 3 . A 32
‘Shall pass through square mesh screen of clear
opening.
tShall pass over square mesh screen of clear opening.
Standard Analyses.
“The quality of coal of the different sizes to
be furnished shall conform or be superior to the
coal described in the following standard analyses
applying to such sizes :
c
0)
U .
*0
U flj
. ^
Names of Sizes P-i ^
of Coal— ‘-.5
o rt
Broken . 4
Egg . I
Stove . 4
Chestnut . 4
Pea . 5
Buckwheat No, 3 . 0
Buckwheat No. 2 . C
Buckwheat No. 1 . 0
>»
O
G
U
- o
<
9
11
12
12
16
16
18
18
3 c
•n ^
Ui O
3
c ^
*=’ r
(U w
9
9
9
9
9
9
9
9
Ph^*
u o
30
'o. >v
1.5
1.5
1.5
1.5
1.5
L5
1.5
1.5
a;
O' .
v) rt
•* . o
p:
13,500
13.200
13,000
13.000
12,400
12,400
12.200
12,200
Correction of Gross Weight
“The actual weight of coal delivered shall be
subject to deductions as a result of analyses of
samples taken from deliveries as follows:
“Correction for moisture: If the moisture
the gross weight of coal shall be reduced at the
rate of two (2) per cent;
“For each one per cent of ash in stove and
chestnut sizes in excess of the standard of twelve
(12) per cent and up to and including fourteen
(14) per cent the gross weight of coal shall be
reduced at the rate of one per cent, and for each
one per cent of ash in excess of fourteen (14)
per cent the gross weight of coal shall be reduced
at the rate of two (2) per cent.
“For each one per cent of ash in the pea and
Buckwheat No. 3 sizes in excess of the standard
of sixteen (16) per cent and up to and including
eighteen (18) per cent the gross weight of coal
shall be reduced at the rate of one (1) per cent,
and for each one per cent of ash in excess of
eighteen (18) per cent the gross wei.ght of coal
shall be reduced at the rate of two (2) per cent;
“P'or each one per cent of ash in Buckwheat
No. 1 and Buckwheat No. 2 sizes in excess of the
standard of eighteen (18) per cent and up to and
including twenty (20) per cent the gross weight of
coal shall be reduced at the rate of one (1) per
cent, and for each one per cent of ash in excess of
twenty (20) per cent the gross weight of coal
shall be reduced at the rate of two (2) per cent.
“Reductions in the gross weight of coal for
excess ash above the standard of nine (9) per
cent for broken sizes up to and including eleven
(11) per cent, in excess of the standard of eleven
(11) per cent for egg size up to and including
thirteen (13) per cent, in excess of the standard
of twelve (12) per cent for stove and chestnut
sizes up to and including fourteen (14) per cent,
in excess of the standard of sixteen (10) per
cent for pea and Buckwheat No. 3 sizes up to and
including eighteen (18) per cent and in excess
of the standard of eighteen (18) per cent for
Buckwheat No. 1 and Buckwheat No. 2 sizes up
to and including twenty (20) per cent in de¬
liveries, shall be offset by remitting such reduc¬
tions made on the one per cent basis at the rate
present in the sample of coal taken from de¬
liveries be in excess of the limits specified in the
standard analysis for the particular kind and size
of coal represented by the said sample, the gross
weight of coal, determined in the manner herein
prescribed, shall be corrected for the percentage
in excess of the allowed limit by an amount
directly in proportion to such excess percenta.ge
of moisture. For example, if broken coal as de¬
livered contains seven (7) per cent of moisture,
being three (3) per cent in excess of the amount
specified herein, a deduction of three (3) per cent
of the gross weight of such delivery shall be
made.
“Correction for ash: The gross weight of coal,
after the correction for excess moisture, shall be
reduced as follows :
“For each one per cent of ash in the broken
size in excess of the standard of nine (9) per
cent and up to and including eleven (11) per cent
the gross wei.ght of coal shall be reduced at the
rate of one per cent, and for each one per cent
of ash in excess of eleven (11) per cenf the gross
weight of coal shall be reduced at the rate of two
(2) per cent;
“For each one per cent of ash in the egg size
in excess of the standard of eleven (11) per cent
and up to and including thirteen (13) per cent
the gross wei.ght of coal shall be reduced at the
rate of one (1) per cent, and for each one per
cent of ash in excess of thirteen (13) per cent
of one per cent for each one per cent on the
amount of coal in other deliveries under the
same contract at the same unit price which con¬
tains ash below the standards of nine (9) per cent
for broken size, eleven (11) per cent for egg size,
twelve (12) per cent for stove and chestnut sizes,
sixteen (16) per cent for pea and Buckwheat
No. 3 sizes and eighteen (18) per cent for Buck¬
wheat No. 1 and Buckwheat No. 2 sizes. No
deductions made on the two (2) per cent basis
shall be remitted. The percentages of ash shall
be computed to the nearest tenth of a per cent.
All such remissions of reductions in the gross
weight of coal shall be made upon the final pay¬
ments under contracts for coal delivered.
“Correction for excess volatile combustible mat¬
ter: The gross weight of coal, after correction
for excess moisture, shall be reduced at the rate
of two (2) per cent for each one (1) per cent of
volatile combustible matter present in excess of
the standard specified herein for the particualr
kind and size of coal delivered. The percentage
of volatile combustible matter shall be computed
to the nearest tenth of a per cent.
“Correction for excess volatile sulphur: The
gross weight of coal, after correction for excess
moisture, shall be reduced at the rate of five (5)
per cent for each one (1) per cent of volatile
sulphur present in excess of the standard specified
herein for the particular kind and size of coal
delivered. The percentage of sulphur shall be
computed to the nearest tenth of a per cent.
“Correction for deficiency in British Thermal
Units per pound: The gross weight of coal, after
correction for e.xcess moisture, shall be reduced
as follows:
“For each one hundred (100) British thermal
units in broken size below the standard of 13,500
British thermal units per pound of dry coal and
down to and including 13,200 the .gross weight of
coal shall be reduced at the rate of one per cent,
and for each one hundred (lOO) British thermal
units below 13,200 the gross weight of coal shall
be reduced at the rate of two (2) per cent;
“For each one hundred (100) British thermal
units in e.gg size below the standard of 13,200
and down to and including 12,900 the gross
weight of coal shall be reduced at the rate of
one per cent, and for each one hundred (100)
British thermal units below 12,900 the gross
weight of coal shall be reduced at the rate of
two (2) per cent ;
“For each one hundred (100) British thermal
units in stove and chestnut sizes below the stand¬
ard of 13,000 and down to and including 12,700
the gross weight of coal shall be reduced at the
rate of one per cent, and for each one hundred
(100) British thermal units below 12,700 the
gross weight of coal shall be reduced at the rate
of two (2) per cent ;
“For each one hundred (100) British thermal
units in pea and Buckwheat No. 3 sizes below
the standard of 12,400 and down to and including
12,100 the gross weight of coal shall be reduced
at the rate of one per cent, and for each one hun¬
dred (100) British thermal units below 12,100 the
gross weight of coal shall be reduced at the rate
of two (2) per cent;
“For each one hundred (100) British thermal
units in Buckwheat No. 1 and Buckwheat No. 2
sizes below the standard of 12,200 and down to
and including 11,900 the gross weight of coal
shall be reduced at the rate of one per cent, and
for each one hundred (lOO) British thermal units
below 11,900 the gross weight of coal shall be
reduced at the rate of two (2) per cent.
“Reductions in the gross weight of coal for
deficiencies in British thermal units below the
standard of 13,500 for broken size down to and
including 13,200, below the standard of 13,200 for
standard of 13,000 for stove and chestnut sizes
egg size down to and including 12,900, below the
down to and including 12,700, below the standard
of 12,400 for pea and Buckwheat No. 3 sizes
down to and including 12,100 and below the
standard of 12,200 for Buckwheat No. 1 and
Buckwheat No. 2 sizes down to and including
11,900 in deliveries, shall be offset by remitting
such reductions made on the one per cent basis
at the rate of one per cent for each one hundred
(100) British thermal units that coal in other de¬
liveries under the same contract at the same unit
price contains British thermal units in excess of
the standards of 13,500 for broken size, 13,200
for egg size, 13,000 for stove and chestnut sizes,
12,400 for pea and Buckwheat No. 3 sizes and
12,200 for Buckwheat No. 1 and Buckwheat No.
2 sizes. No deductions made on the two (2) per
cent basis shall be remitted. The deductions in
British thermal units shall be computed to the
nearest fifty (50) units. All such remissions of
reductions in the gross weight of coal shall be
made upon the final payments under contracts for
coal delivered.
“Aggregate reductions in gross weight: After
the correction for excess moisture shall have been
made as herein specified, all percentage in reduc¬
tions as herein described to be made on account
of a deficient number of British thermal units per
pound, and all percentage in excesses of ash,
volatile combustible matter and volatile sulphur,
shall be aggregated and totalized, and shall be
deducted as a whole, and each payment shall be
made only for the balance of the gross weight of
coal delivered at the price bid per unit, except
that, before the final payment is made under a
contract, deductions in the gross weight of de¬
liveries of one per cent made for deficiencies in
British thermal units as herein described, shall
be offset by remitting such deductions at the rate
of one per cent for each one hundred (100) Brit¬
ish thermal units that coal in other deliveries
under the same contract at the same unit price
exceeds the standard given herein, and that de¬
ductions in the gross weight of deliveries of one
per cent for excess of ash as herein described
shall be offset by remitting such deductions at the
rate of one per cent for each one per cent that
the amount of coal in other deliveries under the
same contract at the same unit price contains ash
below the standard given herein. The total off¬
setting tonnage shall never exceed the tonnage
deductions on the one per cent basis for ash and
British thermal units, nor shall offsettiag tonnage
on coal at one unit price be remitted for reduc¬
tions on coal at a different unit price. Deductions
made for excess moisture, volatile combustible
matter and volatile sulphur shall not be remitted.”
Furthermore, the city reserves the right to con¬
demn deliveries in case excessive clinker is shown
after a “test of reasonable duration.”
.4 well known dealer protests against these
specifications, scoring specifically the increase in
the standard of quality for both the buckwheat
and bituminous. In case of the bituminous, the
standard has been raised by 400 B. t. u’s., and ash
by three per cent. This dealer states that it is
practically impossible to secure a No. 3 buck¬
wheat which will when shipped commercially
show sixteen in ash and 12,400 B. t. u.
As to the sizing, it is contended that they are
altogether too high.
The city specifications require that the coal
must pass through a clear openiag of three-six-
tenth of an inch and pass over a clear opening
of three-thirty-seconds of an inch. The stand¬
ards of the large anthracite coal mining com¬
panies are for coal to pass through an opening
of one-eighth of an inch and over an opening of
No. 8]
THE BLACK DIAMOND
149
one-sixteenth of an inch. The dealer who there¬
fore makes a contract with the city upon specifi¬
cations as above, guarantees delivery of a product
that he cannot buy from most of the producers.
This case is cited as a reason why the large
anthracite companies do not make bids for city
business and who, furthermore, will not make any
guarantees of their coal to middlemen, enabling
them to protect themselves on city contracts.
Dealers contend that there is little possibility of
earning premiums on either buckwheat or bitu¬
minous coal under the above specifications, and
that dealers who submit bids now on city con¬
tracts take great chances.
Coal for Lighthouses.
Detroit, Mich., August 19. — (Special Corre¬
spondence.)— for coal supply, opened by
Edward L. Woodruff, Detroit, inspector of the
Eleventh United States lighthouse district, awards
on which have been confirmed by the United
States bureau of lighthouses, Washington, cover
delivery of the supply for the year ending June
:i0, 1916, at four depots in the district, as fol¬
lows :
IN DETROIT.
^Bitum. Lump-^ r" — Anthracite - ,
Trim in In Govt.
Bidder — Bunkers. Bags. Stove. Chest.
*J. T. Hurley _ $3.50 $3.50 $8.00 $8.00
United Fuel & Sup-
ply Co . 3.48 3.04 7.09 7.94
^ ^ IN SAULT STE. MARIE, MICH.
*George Kemp, Sault ... „ „
Ste. Marie . $3.30 $3.60 $7.40 $8.00
Perry Coal Co., Sault
Ste. Marie . 3.35 3.70 7.90 ....
IN DULUTH, MINN.
^Northwestern Fuel
Co., Duluth . $3.97 $4.53 $8.51 $8.79
Pittsburgh Coal Co. 3.97 4.53 8.79 9.07
IN ASHLAND, WIS.
*C. Reiss Coal Co.,
Ashland . $4.00 $4.40 .... $8.80
‘Finn receiving award.
Proximity of coal yard to lighthouse depot considered in
awartl.
Ohio Rates Challenged.
(Concluded from page 146.)
man ruling that the examination of the rec¬
ords should be made by disinterested parties,
and not by the plaintiff’s rate experts. By
inquiry of Mr. Hillman it was learned that it
would probably require four men three weeks
time to go through the records, the men to
work as two teams. Thereupon Chairman
Waltermire stated that the commission would
select and announce the names of these men
before nine o’clock Thursday morning. This
proved to be agreeable to the plaintiff, but
Mr. Wilson was non-committal as to whether
or not the railroad company would attempt
by any legal action to resist the examination
of the records. He admitted, however, that if
an examination was to be made it would be
more convenient that it should be in the
offices of the company, rather than in the
court. It was thereupon authorized by the
commission that the work should be done in
the railroad offices. Previous to making the
ruling that the commission should provide a
compromise plan of its own for going into the
records, the members of that body held a long
conference.
Adjournment was then announced until
Tuesday, October 5, suiting the convenience
of the plaintiff in preparing its case from the
records of the company. The defendant was
passive as to the time of resuming the hear¬
ing, offering no objection or suggestion. Chair¬
man Waltermire asked that two representa¬
tives from each side call at commission head¬
quarters at five o’clock, Wednesday presum¬
ably for conference purposes in passing upon
the personnel of the corps of e.xaminers, who
will tackle the railroad records.
It was believed that the railroad would make
some further effort to forstall the investigation
of the records, but there was no intimation
as to the grounds that would be ])ut forward.
In order to block the ruling of the commis¬
sion it would have to go into the federal
courts. The highest court of the state re¬
cently upheld the authority of the commission
in regulating freight rates. In fact, it was
this decision that precipitated the present
fight. The railroads have given out the state¬
ment in several conferences with the op¬
erators that should the commission in the
final ruling on any test case decide against
them they would go into the federal courts.
It is not thought that the present defendant
will take such a step on an early technicality
such as is involved in the examination of
records.
The Annual Chicago Coal Trade Picnic.
“All aboard,” and about 400 coal dealers and
their families left from the Quincy street station
of the Aurora, Elgin & Joliet Railway, Saturday
morning, August 14th, for the annual picnic of
the Chicago coal trade at Fox River grove, Au¬
rora, Ill.
A large crowd, bulging lunch baskets and plenty
of sunshine gave evidence that the picnic would
be a success, and it was.
The coal trade picnickers arrived at Fox River
grove about noon time. After lunch, everybody
went over to a nearby ball park, where an indoor
outdoor baseball game between Glaser’s Tigers
and the Big Creek Sox was to be played, but
threatenin.g clouds developed into a small cloud-
Imrst, and the game was cancelled.
The crowd in the grandstand, after locating
dry places under waterproof spots in the roof,
listened to a band concert, several impromptu
solos and quartets.
“Wet grounds” after the rain prevented hold¬
ing the races in the ball park, and the picnickers
waded over to the pavilion, where they danced
and participated in the different events. The
winners of the events were :
Men’s horseshoe pitching contest — Wm. Hirsch-
feld, first ; George Glaser, second ; Sam Babcock,
third.
Potato race for men — Gottschalk, first; Ray
Barker, second; C. Ringston, third.
Ladies’ high jump — Miss Cohen, first; Miss
Hecht, second ; Mrs. Kuhr, third.
Ladies’ pitching quoits — Mrs. Morehouse, first;
Mrs. James, second; Mrs. Groeff, third.
Ladies’ peanut finding contest — Miss McMahon,
first; Misses King and Nolan, tied for second;
Mrs. Carpenter, third.
Ladies’ whistling contest — Miss Nolan, first;
Mrs. Carpenter, second; Miss Argo, third.
After the completion of the program, those
dealers still enjoyin.g an over-abundance of “pep,”
tried their skill at “it’s a short throw and a big
head,” “the cane you ring is the cane you get,”
and other amusements.
Wni. D. Elmstrom awarded the different prizes
from the stage of the grove’s open air theater,
in a manner that would make the village mayor’s
diploma presentation look like a side show
barker’s spiel.
The afternoon’s rain having delayed the pro-
.gram somewhat, there was little time left after
the awarding of the prizes for anything else
but catch the homeward bound trains at six-thirty
and seven.
Though it was said that the picnic was not as
well attended as former ones, it could not he
surpassed for the good time and sociability it
afforded.
“Leftovers” From the Picnic Baskets
Letter openers were distributed among the pic¬
nickers by the Chicago Solvay Coke Company,
and the Chicago, Wilmington & Franklin Coal
Company gave out pencils.
Chan. Lemmon went out to the park accom¬
panied by three of his sales force and his trusty
golf clubs. Chan, and the golf clubs are insep¬
arable whenever he gets out of the city limits. It
is rumored that he is a little off on his game
this season, and that it will not be surprising if
he is seen under the care of a professional tutor
before lon.g.
This isn’t “Funabout Fords.” Homer Jones
and his brother, Barrett, made the run to the
park in an hour and forty-five minutes. There
was a very heavy rain during the afternoon and
we have not heard whether or not he has arrived
in Chicago up to date.
Among those of the elect who motored out
were A. B. Lemmon of the Consolidation Coal
Company, Percy McMillan of D. C. McMillan &
Bro., and W. R. Kernohan, western manager of
the Pocahontas Coal Sales Company.
Al. Bunge peeled off his coat early in the game,
and it remained off until everything was over.
John Collins of the Bunge Bros. Coal Company
played a role a bit different from the others.
John was appointed custodian of the prizes, etc.,
and he certainly made good, although he missed
a lot of the fun.
It was suggested by some that water polo be
substituted for the baseball game. It was an
appropriate suggestion, but at the last moment it
was decided to hold a musicale. Miss Margaret
Keyes, with the John Cowman (Toal Company,
was the soloist, and was ably assisted by C. D.
Caldwell, Chan. Lemmon, A. O. Tandy, Al. Mor-
due, and many others less prominent in musical
circles.
Although the entries in the various contests
were numerous, it is a certainty that there would
have been many more had the prizes been viewed
by those in attendance before the games started.
The prizes awarded were unusually attractive and
of exceptional value.
The “Purity” party were well represented in
the awards. Miss Nolan carried off a very hand¬
some silver cake plate, while her sister was
awarded a diamond ring. Mrs. Harry King won
a beautiful vanity case and coin purse.
Coal Men of Chicago and Their Families at the Annual Picnic Last Saturday.
No. 1 — J. H. Nelson (center front row) of Iiehig'h Valley Coal Sales Company, and others from
the Iiehig'h office. No. 2 — W. D. Nlmstrom (right) and W. R. Kernohan (left), President and Vice-
President of the Chicago Coal Merchant’s Association, at the picnic. No. 3 — Homer Jones of the
■Western Fuel Company, almost making a “ringer.” Frank J. Browning (second from the left, hack
row), and his “Purity” Plcknlckers.
150
THE BLACK DIAMOND
[August 21
PUBIiISHED EVE&T SATTTBDAT BT TSB
BIiACK BIAMOITD COUPAlfT.
Subscription price, $8.00 per year, postage prepaid, to
any postoffice in the United States. _ Foreign subscrip¬
tion price, $6.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THB BBACS DIAUONB COMPANT (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, August 21, 1915.
INDEX.
Special Articles.
Page
Anthracite Rates Reduced by the Commission . 141
Lawson’s New Trial . 143
Western Coal Rate Ruling of the Commission . 144
Rates on Coal in Ohio Are Being Challenged . 146
Increased Anthracite Rates to Chicago Allowed . 147
Control of Europe’s Coal . 147
Bids for and Contracts Let on Coal. ..^ . 148
The Annual Chicago Coal Trade Picnic . 149
Editorial . 150
Illinois Operators Will Try to Overturn Rate Advance 151
Illinois Mines Over 57,000,000 Tons of Coal in 1914 151
Mesa Verde Prophets Foretell Cold Winter . 151
News Local to Chicago . 152
American Mining Congress . 152
Detroit Coal Picnic . 162
Facts Which Determine Our Export Prospects . 153
Ruling on Steam Sizes . 157
Market Reports.
General Review and Chicago . 154
Pittsburgh, Twin Cities and Omaha . 155
Cincinnati, Denver and Duluth . 156
Indianapolis, Louisville and Detroit . 157
New York . 158
Philadelphia and New England . 159
Buffalo, Baltimore and Birmingham . 160
Hocking Valley . 15
Basis of Anthracite Rates.
We have studied patiently and dili¬
gently to find what is the basis according
to which the Interstate Commerce Com¬
mission prescribed the new rates on an¬
thracite coal. So far we have not been
successful. It may be there somewhere,
but so far as the wording of the report in¬
dicates there is no basis. It is simply a
matter of guess.
That is to say, the carriers suggested
that rates be made so as to allow a cer¬
tain return on the value of the property.
The commision tried to do that and then
came to the conclusion that the railway’s
value was false. Then it admitted that its
own figures as to railway valuation had
not been compiled. Therefore, not know¬
ing what the cost was, it could not figure
the rates so as to yield a fair return on
the value of the property.
It found what it considers to be the
“cost of the service” on at least two roads.
The preceding paragraph, however, proves
that its own figures are not correct. That
is, it is impossible to figure the cost of any
railway service unless you include as part
of it a proper charge to depreciation and
a proper interest on the investment. Not
knowing what a thing costs in the first
place, makes it impossible to figure either
depreciation or interest on investment.
Therefore the commission’s finding as to
the “cost of service” is, on the face of it,
incorrect.
The commission tried other schemes by
which it was going to decide what is the
proper basis of rates, but seems to have
abandoned all of them.
In a word, the new basis of rates is
guesswork. The difference is that in this
instance it is the guesswork of a govern¬
ment official — which makes it all right, to
be sure — rather than the guesswork of the
officers of the road. Does a position in
the government service make one man’s
guess better than that of another man in
the railway service?
New Light on Coal Storage.
For years students of coal have recog¬
nized that the principal difficulty is
unequal monthly distribution. Its big¬
gest disadvantages are that unnecessary
mine development is created to supply the
demand in season and unnecessary rail¬
road equipment is bought to move the
coal. That is, mines and railroads must
be equipped to produce and carry in seven
months all of the domestic and much of
the steam coal which should be produced
and distributed over twelve months.
The solution of the problem has been
agreed upon. On theory, the right thing
is to store in summer a portion of the coal
that is used in winter. The assumption
heretofore has been that the retailer and
householder should do the storing. Very
little, if anything, has been said about
any extended storage of steam coal. Al¬
though the railroad pays one big penalty
of unequal distribution, very little has
been said about any extended storage of
coal by it.
This summer we have had ample proof
of the fact that summer storage can be
procured. But it was also proved that it
costs money. The anthracite operators
learned, a year ago, that they could put
coal in storage if they would extend credit
to the retail dealers for four or five
months. The dealer learned, last year,
that the householders could be persuaded
to store coal if credit were extended for
five or six months. Both of these exten¬
sions of credit cost money. The operators
and dealers only came to know the terms
upon which storage can be done when they
withheld credit and when, in consequence,
the storage movement stopped.
It has been proved that bituminous coal
can be stored if the summer price is cut.
In former years, western bituminous lump
coal has been sold in the summer in large
volume, at $1.00 a ton. When that price
ruled, there was considerable storage.
This year the western operators main¬
tained a minimum price of $1.25. The
average price for May, June and July was
perhaps $1.30.
That moderate rise in price stopped the
storage movement. Practically no retailer
and no householder has stored any coal
this summer. Therefore, the cost to the
operator of storing bituminous coal can be
figured at thirty cents a ton.
Now we have this other angle of the
situation. The Interstate Commerce Com¬
mission, in its recent report on the western
railroad rate case, says that “between the
month of lowest and the month of highest
density of this traffic there is a difference
of 89.73 per cent — greater than the differ¬
ence between the maximum and minimum
tonnage of any other particular kind of
traffic.” This says definitely that if the
railroads could, in some way, assist in the
summer storage of coal they could get
rid of the small traffic in summer, and the
congestion of coal traffic in the fall and
winter. Because of the slow movement
at one time and the intensified movement
at another, the railroads must have more
cars and other things to take care of the
peak load than would be necessary if the
tonnage were equally distributed.
That leads to this conclusion : The cost
of bituminous coal storage is thirty cents
a ton as a maximum ; on anthracite it is
the price discount plus the cost of credit.
If the railroads could make storage rates
on coal over the summer months — we
will" say of twenty cents a ton below the
tariff rates — the bituminous operator
would no doubt be willing to pay their
ten cent share to get the storage move¬
ment started. In the end, a more equal
distribution of tonnage throughout the
twelve months of the year would result
in economies which would more than off¬
set the initial cost.
Cost of Property.
The Interstate Commerce Commission,
in its ruling on the anthracite case, gave
what may prove some indication of the
basis upon which its experts are going to
try to compute the value of American
railways. i
For example, it said that the first cost
of one railroad, built in 1894, had been
fixed by its officials at about $3,000,000.
The commission’s own accountants had
proved that the actual money expenditure
was about $1,500,000. The bonus to some
contractors was another $1,500,000. The
commission would not admit that the
bonus should be part of the cost.
Any man who has undertaken to start
either a new or a venturesome business
and who has had to borrow money in or¬
der to make his plans a reality, knows
that a bonus is not only a proper but a
necessary item in the cost — as much so
as the bill for material. It is a fact that
only by giving a bonus can the organizer
get money at all ; without the money the
whole thing is impossible.
Does the Interstate Commerce Commis¬
sion mean to say that, in figuring the cost
of the railroads, even in the earlier times,
it is going to rule out all the bonuses
given as inducements to get capital? We
could think of nothing more unjust to
business than that principle.
A great deal has been said of late about
watered stock. Much, and in fact most
of this watered stock sprang from the
bonuses given to people who had money
but who were unwilling to invest it in a
railway which, at that time, was sup¬
posed to be only a dream. Nobody, forty-
years ago or less, could foresee the present
social, economic and political system of
America which has grown up with the
railroad as a center. All they could see
was that the railroad was starting off into
a wilderness with a hairbrained fellow at
one end and a hope at the other. It took
a lot of courage to invest money in such
a thing. Naturally the men who did in¬
vest had to have some strong inducement.
In recent years the situation in America
has so changed that among those who can¬
not understand, the inducement is looked
upon, not as a bait for the man with
money, but as prima facie evidence of cor¬
ruption.
If the United States government,
through its Interstate Commerce Com¬
mission, adopts any such idea, the Amer¬
ican people will occupy the humiliating
position of convicting themselves of not
knowing their own history.
No. 8]
THE BLACK DIAMOND
151
Illinois Operators Will Try to Overturn Rate
A meeting of Illinois coal operators was held
in the Great Northern hotel, Chicago, on Thurs¬
day of this week to see if anything could be done
to persuade the railroads to refuse to check in
the advance in rates which they were authorized
to do by the recent decision of the Interstate
Commerce Commission.
The operators were not protesting in the first
instance against the railroads getting more reve¬
nue. On the contrary, when the railroads pro¬
posed the advance, the Illinois Coal Operators’
Association passed the following resolutions :
“That although the association desires to go on
record as riot being antagonistic to the railroads
in securing proper and reasonable freight ad¬
vances where such advances can be checked in
without distributing present existing differentials
as between their coal and that from the docks to
Illinois, Wisconsin and other northwest destina¬
tions, we do feel compelled to object and contend
against advance in freight rates to all north and
west points where movement of our coal would
be affected by competition from eastern coal,
moving all rail or over the north lake docks.”
The point is : The upper lake lines by hauling
grain to the lakes and coal on return have prac¬
tically no empty car haul. Therefore, the weighted
average per car mile is higher. The other lines,
by having an empty car haul on coal equipment
back to the mines, have a fair weighted average
rate on the outgoing car, but this is cut by the
empty return trip. The railways say that they
cannot afford the lower average earnings on the
gross car movement. The operators admit these
facts but ask if the railroads think they can in
the present impoverished condition of the western
The season so far verifies the weather pre¬
dictions of the Indians who occasionally visit
the Mesa Verde National Park in southwest¬
ern Colorado for trading purposes, but who
never stay an hour longer than is necessary
because of their dread of the “little people’
whom they believe still inhabit, in spirit form,
the prehistoric cliff dwellings that have made
the Mancos Valley famous the world over.
Last fall the Mesa Verde prairie dogs deserted
their villages for new ones and the Indians
have been shaking their heads over it all win¬
ter. “Rain, much rain,” they say: “rain all
Despite some strikes and other rather unfa¬
vorable conditions in 191.4, the production of
coal for Illinois during the year was 57,589,197
short tons, valued at $64,693,529, according to
figures compiled by the United States Geolog¬
ical Survey in co-operation with the State Geo¬
logical Survey of Illinois.
This tonnage is well up with the figures of
the years of largest production in Illinois. The
supply of labor was plentiful and transporta¬
tion facilities were adequate throughout the
year, except during the biennial shutdown,
which has now become a regular incident of
the spring months of the “even” year in Illi¬
nois coal mining, which began as usual on
April 1, 1914, and lasted in certain districts
from thirty to sixty days.
An increase in value per ton was recorded
in nearly one-third of the coal producing coun¬
ties in Illinois during 1914, but the average
value per ton for the state declined slightly
—from $1.14 to 1913 to $1.12 in 1914.
There are more coal mining counties in Illi¬
nois than in any other state in the Union, half
of the 102 counties being or having been pro¬
ducers. The two most important producing
counties are in the southern part of the state,
where the coal beds attain greater thickness
than in the northern districts.
The principal Increase in the coal production
of Illinois in 1914 was in Franklin county,
where a large amount of development has
taken place during the last four years, advanc¬
ing the county from eighth place in 1910 to first
in 1914. In 1914 this county produced 7,311,-
209 tons of coal, an increase over 1913 of 1,-
229,107 tons, or over sixteen per cent.
The increased efficiency in the labor em¬
ployed in the coal mines of Illinois continued
coal trade, out of their own pocket, afford to
make up what the railroad want. Specifically, the
operators ask:
“Would not the effect be that both the operators
and the railroads would lose business and hence
money? Would not the railroad lose enough tons
of business and hence the whole rate to more
than offset the increase per ton on what is car¬
ried. Isn’t it a fact that to put these rates into
effect would be merely to turn business in another
direction.”
At the meeting on Thursday, the larger opera¬
tors decided to go individually to the railroads
and plead their case as here, in substance, out¬
lined. They will make a particular point of the
record presented in Harwood’s exhibit No. 3
to the Interstate Commerce Commission in 1910.
In 1910 the movement of commercial coal to
Minnesota, including the Twin Cities, had grown
to 587,753 tons; in 1911 the rate was advanvced,
increasing the differential against the western
mines. In consequence, the business dropped to
266,782 tons. Next year there was an increase in
business to 571,628 tons. Afterward, in 1913,
there was another increase in differential against
the western operators and the tonnage again
dropped to 485,998 tons.
In other words, every time there has been an
increased differential against Illinois, the tonnage
has fallen off.
The same thing, the operators believe, is going
to happen if the proposed rates are checked in.
They want to avoid this loss of tonnage to them¬
selves and traffic to the railroads, hence this ap¬
peal that the railroads do not check in the rates
which they are empowered to do.
summer.” So far they seem to have predicted
right.
And now they are again shaking their heads.
“Cold, much cold,” they say; “bad winter
coming.” And why? Because this summer
game has been unusually plentiful on the
Mesa Verde. Deer are more frequently seen
than for years. Rabbits and hares are so
numerous one can scarcely go about without
seeing them in large numbers. Coyotes and
mountain lions are also unusually plentiful,
which may be explained by the abundance of
the small game on which they live.
in 1914 and was due chiefly to the larger pro¬
duction obtained by the use of mining machin¬
ery. In 1914 the average production per man
in the Illinois coal mines was 724 tons for the
year and 4.2 tons for each working day, against
775 tons for the year and 4.1 tons for each day
in 1913.
The increased quantity of coal mined by ma¬
chines increased from 32,630,555 tons, or fifty-
three per cent of the total, in 1913, to 32,640,528
tons, or fifty-six per cent, in 1914. It is grati¬
fying to note the corresponding decrease in
the coal shot off the solid. In 1912 the quantity
of coal thus mined by powder in the mines of
Illinois was 24,136,940 tons, or forty per cent
of the total; in 1913 that item amounted to 20,-
469,139 tons, or thirty-three per cent of the
total, and in 1914 it amounted to 18,362,240 tons,
or thirty-two per cent of the total.
English Coal Situation Serious.
The recent settlement, by government inter¬
ference, of the strike of the coal miners in
Wales, does not insure a period of peace and
prosperity for the Welsh coal operators. In
fact, the settlement just about amounted to
giving the miners what they contended for,
which is a very good increase in pay, and this
means that a suitable advance must he made in
coal prices to compensate the increase in
wages paid to the miners, or that operators’
profits must be cut accordingly. That the set¬
tlement of the strike upon the conditions as
given in the cables, and later confirmed by the
trade and newspapers coming to America, is
not by any means, satisfactory to the coal
operators, is best evidenced by an editorial
appearing in the well known English coal min¬
ing paper, the Colliery Guardian of London,
in its issue of July 23. Says this paper:
“The strike in South Wales has ended and
the men have gone back to the pits, but the
stink remains. Mr. Lloyd George went down
to Cardiff and told the Welsh miners what a
fine lot of fellows they were, and they fer¬
vently acquiesced; yet how far is this from
being the true reflection of the facts. By
their action they have irretrievably Injured the
prestige of their country; they have gambled
with the blood of their comrades in the
trenches, destroyed the confidence of our al¬
lies, and dealt the government a blow from
which it will with the utmost difficulty recover.
“For the minister of munitions we have no
word of blame; he had to save something
from the wreck, and he succeeded as well as
the wit of man could conceive; but for the
perverted and sordid democracy that e.an
stoop to wrest these spoils from the necessfty
of its fatherland, we have nothing but loath¬
ing; and for those who have abetted and ex¬
cused, nothing but amazement. What must be
the future of those who can with complacency
witness a compromise at such a cost?
“Let us look at the consequences. The
miners have succeeded in obtaining practically
the whole of their demands; and they have
done this, to use the word of the ministers
who visited Cardiff, ‘by the public-spirited ac¬
tion of the coal owners, who placed them¬
selves unreservedly in the government’s hands
for the purpose of securing a peaceful and
reasonable settlement immediately.’ To
measure the justice of the cause by the results
obtained under these conditions, and to say,
as do some of our agile contemporaries of the
daily press, that by their failure to agree to
these terms in the first instance, the mine
owners have shown their guilt, is evidence of
a warped judgment; it is to presuppose the
justice and reasonableness of the terms that
have been extorted. If the mine owners are
guilty, is not the government equally guilty?
For the owners from the outset placed them¬
selves unreservedly in the hands of the cabi¬
net, and the terms that have been flouted have
not been the terms of the employers, but those
formulated by the president of the board of
trade.
“Under other circumstances, we might fairly
say that the employers’ trust has been abused;
we prefer to say that, by their self-sacrifice,
they have saved the face of the government, so
far as it was possible to save it. For let us be
under no delusion, this strike has shaken the
authority of the state to its foundations.
“But the trouble, which broke into open
eruption in South Wales last week, is still
there; the foliage has been mown down but
the roots of the weeds are still alive below the
surface. What has happened in the Rhondda
Valley, may tomorrow happen in South York¬
shire, at Elswick, or on the Clyde, and the
damage may be greater next time. When the
munitions act was introduced, Mr. Lloyd
George said he would require guarantees from
the coal trade; if he gets them, what are they
worth? The unions cannot give them; even
when the executive of the South Wales
Miners’ Federation, the government and the
coal owners had reached agreement, the pact
had still to be ratified by the delegates; if it
had been deemed politic to the caucus, the
decision of the delegates might in its turn have
been conditional upon its acceptance by the
rank and file, although the latter, from first
to last, were never consulted through the bal¬
lot on the question of striking, as they should
have been.
“Under these circumstances, from whom can
Mr. Lloyd George obtain his guarantee, and
where is his security? Only in the goodwill
and patriotism of the people; and, in that case,
why have a government at all? In another
column we examine the ‘terms of settlement’;
we refuse to discuss them here, because any
such digression would obscure the paramount
fact that nothing can be really settled if the
methods adopted in South Wales be sanctified
by approval. The only consolation we have is
that those who engineered this disgraceful
strike have not quite succeeded in their real
object, which was the nationalization of the
mines. The chief argument against nationali¬
zation is that it is less economical and less ef¬
ficient than private enterprise; but, if private
enterprise be hampered by unfair and impos¬
sible conditions, the argument is sensibly
weakened.”
Mesa Verde Prophets Foretell Cold Winter
Illinois Mines Over 57,000,000 Tons of Coal in 1914
152
THE BLACK DIAMOND
[August 21
News Local to Chicago.
Karl B. Brundage now with the Ford Collieries
Company, with headquarters in Detroit, was in
Chicago this week.
E. M. Peters, president of the Ilamilton-Otto
Coke Company of Hamilton, Ohio, was a Chicago
visitor within the week.
F. S. Peabody returned the first of this week
from a month’s vacation which he spent in New
England, a good part of the time being spent on
an automobile tri]) in New Hampshire.
W. L. Schmick, vice-president and general man¬
ager of the Big Muddy Coal & Iron Company
of St. Louis, spent the early part of this week
in town.
J. B. Beardslee, Chicago manager of the Con¬
solidation Coal Company, is back at his desk
after having spent a week with his family at
Beaver Lake, Wis.
The announcement was made this week that
Harry Trester who recently resigned a position
as manager of sales of the A. B. Currie Coal
Company of Omaha, has accepted a position with
the Peabody Coal Company, connected with the
sales force.
C. V. Beck, president of the St. Louis Coal
Company of St. Louis, dropped off for a day on
his return trip from the east, where he visited
in New York, Atlantic City and the anthracite
regions. Mr. Beck reports an optimistic outlook
on bituminous coals in the east.
George B. Harrington, president of the Chi¬
cago, Wilmington & Franklin Company, has
almost completed the building of a modern
mining plant and town at Orient, Illinois. This
operation is now producing 3,300 tons of coal
daily, making it one of the largest mines in
Franklin County.
J. E. Rutledge of St. Louis, president of the
New Staunton Coal Company and the Nokomis
Coal Company, has awarded a contract to the
Robert & Schaefer Company for the con¬
struction of two miners’ bath houses, tvliich will
be built immediately at Nokomis and Livings¬
ton, Illinois.
Guy V. Dering of Columbus, Wisconsin, for
the last three 3fears a member of the Boarcl
of Directors of the Illinois and Wisconsin
Coal Dealers’ Association, was one of the
prominent figures at the Grand American trap
shooting tourney held at Grant Park this
week. Mr. Dering won the national amateur
title at double tragets by breaking ninety-one
in 100, from the sixteen yard line.
C. B. Cotton of Sabula, Iowa, while in
Chicago this week, said very little coal had
been stocked by dealers in eastern Iowa.
This situation is due principally to the back¬
wardness of the threshing season and the
inability of the dealers to get labor to un¬
load coal. The continued wet weather has
also been an important factor in delaying the
movement of coal.
The Purity Coal Company closed their
offices August 14, to permit the employes to
attend the picnic. They came sixteen strong
as guests of the company. The party dropped
off at Aurora, where Frank J. Browning was
host at a lunebeon given in honor of his grand¬
daughter, who arrived Saturday morning at
7:15. Frank N. Browning, the proud father,
was unable to attend the picnic on account
of the new arrival. Grandfather Browning
will be in the market shortly for a new ma¬
chine. However, the automobile salesmen
won’t profit by this tip, although the vehicle
comes under the heading of a “horseless car¬
riage.’’
The Coal Trade Bowling League is organ¬
izing and completing its schedule for the sea¬
son of 1915-10. A few more clubs are needed
to complete the organization. The Globe Coal
Company, Peabody Coal Company, Consumers
Company and the Atwill-Mackemson Coal & Coke
Company are represented by teams and four
more teams will be added shortly. Flarry
Steers Alleys at Randolph and Wabash avenue,
have been secured, which ensures ideal alleys
for the rolling of the games. Bowlers in¬
terested in joining this organization should get
in touch with H. L. Weith with the Atwill-
Makemson Coal Company, 1128 McCormick
building, Chicago.
Among the visitors this week was H. A. Kuhn
of Pittsburgh, who is making a trip into the west¬
ern territory to study mining conditions. He
makes the statement that all through the Pitts¬
burgh district prices are rising steadily because
the demand really is booming. The steel mills
are running extraordinarily full on foreign
orders, mostly for war material, and this activity
is gradually spreading to all factories in the
Pittsburgh district. JMeanwhile, there is an in¬
creasing export demand for coal, which, together
with better home demand in the east, is having a
beneficial influence on prices. The values are be¬
ing marked up nearly every day and prices are
now common which a short time ago were con¬
sidered to be very attractive figures.
The announcement was made this week that the
J. K. Dering Coal Company had sold to some
financial interests its two mines in Franklin
county, one of them being the famous Little Jack
mine. A further announcement was that these
were turned over to the Producers Coal Com¬
pany, which is a new concern just organized. Of
that company, F. h. Peabody is president and
will be in charge of the operations. The an¬
nouncement further is that negotiations are under
way by which J. K. Dering will sell the output
of these mines, since he is familiar with the coal
and with the market in which it has been hereto¬
fore sold. Some negotiations are also pending
touching other mines of the J. K. Dering Coal
Company and definite announcement as to them
will be made in a few days.
American Mining Congress.
The annual meeting of the American Mining
Con.gress this fall is going to be held in San
Francisco, beginning on Monday, September 20th.
This will be a most important meeting for several
reasons.
The middle part of September will see in San
Francisco perhaps more .mining men than have
ever gathered at one point on one occasion. For
e.xample, the American Institute of Mining En¬
gineers will meet there the latter part of the pre¬
ceding week; then comes the Mining Congress
session, and following that is the meeting of the
American Mine Safety Association. The first
meeting will gather in San Francisco the techni¬
cal mining men of the world. The Mining Con¬
.gress will gather there those men who are inter¬
ested in the executive side of coal and metal
mining. And the Mine Safety Association will
gather there the operating officials who are in¬
terested in the preservation of life and the safe
development of coal mine operations. Thus all
classes of mining men will be in San Francisco
at just about that time. This makes the Mining
Congress especially interesting.
For another thing, ihe American Mining Con¬
gress has some very big plans in mind. Some of
these plans have to do with the work which is to
be done in the next year, both throughout the
United States and at Washington. Some in¬
tensely interesting legislative programs are up
right now and the Mining Congress will want to
.get from the coal men an approach to a con¬
sensus of opinion on what should be done.
For another thing, the Congress' is going to
begin at once to plan, if it is thought advisable,
a bi.g mining exhibition to be held in Chicago a
year hence. That will be one of the principal
matters up for discussion.
All things considered, the meeting of the Con¬
gress this year is going to be of unusual impor¬
tance and should command the attendance of
quite a number of coal people. Not only that,
Init many coal men no doubt will want to visit
the Panama-Pacific exposition anyway and could
very well time their visit to the coast to be there
when the Mining Con.gress is in session.
All these things considered, Carl Scholz, the
president of the Congress, is trying to get to¬
gether a special party of coal men who will travel
on the same train after leaving Chicago. He is
in touch with some coal mining people who are
planning to go west and would like to get in
touch with others who expect to go to the exposi¬
tion and who might want to .go at the time of
the Mining Congress.
One plan is to leave Chicago at ten o’clock
a. m. on Wednesday, September 15th, on the
Rocky Mountain Limited over the Rock Island
road. This will put the party in Denver at 2:45
p. m. the next day. It will leave Denver at five
o’clock that evening on the Union Pacific, arriv¬
ing at Salt Lake City at noon the next day. The
party will remain there over night and leave on
the early train for Frisco on Saturday mornin.g,
arriving at destination on Sunday morning, the
19th.
The alternative plan is to leave Chicago at
10:30 p. rn. on Tuesday and go by way of Colo¬
rado Springs and the Denver & Rio Grande to
Salt Lake City.
Mr. Scholz has made very flexible arrange¬
ments with the railroad as to the kind of car to
be used and is sure that any kind of equipment
which the coal people may want can be provided.
That is, they can have a car containing compart¬
ments only or they can have a combination of
compartments and sections with an observation
car. Under whatever arrangement, the same car
will take the party from Chicago through to San
Francisco, so that there need be no inconvenience
even on the stop-over at Salt Lake City. He is
especially anxious to get together a party that
will at least take up one car.
It would seem not a difficult matter to get that
eighteen or twenty persons together, seein.g that
all those going from the east could join the party
at Chicago.
Mr. Scholz will be accompanied by his wife
and daughter and it is, naturally, expected that
other coal men will take some members of their
family. Coal men who are expecting to .go west
about that time can have their reservations, etc.,
made for them by communicating with Mr. Carl
Scholz at the office of the Consolidated Indiana
Coal Company in the La Salle street station,
Chicago.
Detroit Coal Picnic.
Detroit, Mich., August 19— (Special Corre¬
spondence.) — Defeated by the athletes pf Toledo
Coal Exchange in a baseball game, members of
the Detroit Coal Exchange found consolation in
snatching victory in the tug of war contest with
Toledo and in a baseball game played with a team
representing the Detroit and Toledo Shore Line
Railroad, at the joint outing of the Detroit and
Toledo exchanges on Sugar Island, August 10.
Both cities were about evenly represented in the
700 or more persons attending the affair.
Their winning of the ball game with the rail¬
road men secured to Detroit the prize, an ebony
and silver plaque contributed to the Toledo coal
men, while the conquest in the tug of war won
for each of the eight men on the Detroit team a
nickel-plated coal scuttle donated by the Ford
Collieries Company. The Toledo ball players’
victory brought them a gold-lined silver cup con¬
tributed by officers of the Detroit & Toledo Shore
Line.
In a second tug of war between teams of eight
men representing Detroit retailers and whole¬
salers, the retailers each won a watch fob pre¬
sented by the Detroit City Gas Company.
Other athletic events, the winners and prizes
were :
Yes and no contest, free for all — Lady’s prize —
manicure set, Lucile Lan.g, Detroit; gentleman’s
prize — one-half dozen silk socks, Kean Cronin,
Detroit.
One hundred yard dash — boys ten to fifteen
years old — First prize, bathing suit, John Lang,
Detroit; second prize, indoor baseball, James
Greenwald, Detroit.
One hundred yard dash — boys over fifteen years
old — First prize, baseball glove, A. L. Sterner,
Toledo; second prize, baseball bat, Hal Reynolds,
Detroit.
Fifty yard dash — girls twelve years or older —
First prize, wrist watch, Clara Bentley, Detroit;
second prize, pair of silk gloves Loretta Krupp,
Detroit.
Twenty-five yard dash — ^.girls under twelve
years old — First prize, pair of silk stockings,
Helen Kraft, Detroit; second prize, middy blouse,
Marie Wetzel, Detroit.
Fat man’s race — 200 pounds or over — First
prize, silk shirt, John Koenig, Detroit; second
prize, military comb and brush set, Alexander
Smart, Detroit.
Three legged race — for boys and men — First
prize, box of cigars for each, Joe Cronin and
Kean Cronin, Detroit; second prize, belt for each,
Harold Spitler and Albert Miller, Toledo.
Pipe race — First prize, pipe and tobacco, Bert
Mandell, Detroit; second prize, tobacco and pipe,
W. K. Reeves, Columbus, Ohio.
Egg race for ladies — First prize, electric curliag
iron, A. Korte, Detroit; second prize, one-half
dozen cut glass tumblers, Mrs. E. J. Dubois, De-
troit.
Dancing contest — First prize for lady, very spe¬
cial, Miss Pyra Champlin ; for gentleman, cane,
Harry Chrysler, Detroit ; second prize, lady, um¬
brella, Miss Agnes Witt ; for gentleman, more
special, Geor,ge Haddus, Detroit.
The Baltimore & Ohio Railroad has distributed
a $1,000,000 order for steel rails and 1,000 more
steel hopper car bodies.
No. 8]
THE BLACK DIAMOND
153
Facts Which Determine Our Export Prospects.
The Export Situation.
The export movement continues good. Hamp¬
ton Roads shipments this month are keeping up
pretty well with the July record. Baltimore
slumped last week, due to the delay in the ar¬
rival of vessel tonnage. It is expected that from
now until the end of the month, arrivals will be
large enough to make up for this slump.
Some new business for Italian interests is said
to have been closed during the week, estimates as
to the tonnage involved, running around 250,000
tons. Rumors also continue regarding negotia¬
tions for a very heavy tonnage for France.
American shippers note with interest the very
light shipments going from England to South
America during the past three or four weeks, and
look for no few spot sales of American coals to
make up for the lack of shipments on the part
of the Welsh shippers.
Cargo sales continue to be made here and
there, so that in the aggregate, a very good ton¬
nage is moving in addition to the very large
tonnage being shipped under contract.
Later figures show that July exports from
Hampton Roads, Baltimore and Philadelphia
reached the handsome total of 1,142,567 tons.
This was an increase of 100,000 tons over June.
Exports by ports were :
Tons
tUmpton Roads . 712,955
Philadelphia . 171,027
Baltimore . 258,585
Total . _ . .1,142,567
This compares with 320,406 tons shipped in
July, 1914.
Baltimore Exports.
Statement of bituminous coal exported from
the port of Baltimore during the month of July,
1915, as reported by the Custom House, shows :
Country Tonnage
France . 26,191
Greece . 10,220
Italy . 96,358
Netherlands . 3,002
Norway . 2,907
Spain . 14,077
Sweden . 23,311
Costa Rica . 2,710
Honduras . 559
Cuba . 24,427
Argentine . 29,725
Egypt . 17,885
Fr. West Indies . 928
Uruguay . 6,126
Venezuela . 988
Peru . 371
Total . 258,585
English Freight Rates.
Recent fixtures from the Tyne have been as
follows: To Algiers 18s; Barcelona, 22s 6d and
24s; Boulogne, 12s 6d; Buenos Aires, 24s;
Bordeaux, 17s and 17s 6d ; Lisbon, 17s 3d and
19s; London, 6s 6d; Las Palmas, 19s and 19s 6d;
Port Said, 24s; Teneriffe, 19s.
From Cardiff, recent fixtures h^ive been as fol¬
lows: Alexandria, 20s; Genoa, 17s and 17s 6d;
Gibraltar, 13s 3d and 13s 6d ; Leghorn, 16s 6d
and 17s; Lisbon, 10s 6d ; Marseilles, 17 fr. ;
Naples, 16s 3d and 16s 6d ; Rouen, 10s; Savona,
17s 6d and 17s; St. Nazaire, llj^ fr.
Lloyd-George Extols Coal.
At a joint conference of the British govern¬
ment departments and the various coal trade or¬
ganizations held in London on July 29, David
Lloyd-George, the new minister of munitions,
made some very interesting statements about coal
and its mission in the present war. Mr. Llovd-
George said that the country was suffering from
the patriotism of the miners. The demand for
coal was greater than ever; the supply of labor
less than ever. He continued :
“In times of peace coal is the most important
element in the industrial life of the country. The
blood which courses through the veins of indus¬
try in this country is made of distilled coal. In
peace and in war King Coal is the paramount
lord of industry. It enters into every article
of consumption and of utility, it is our real in¬
ternational coinage. When we buy goods, food
and raw material abroad, we pay not in gold, but
in coal. We pay in diamonds, except that they
are black, and not in gold. Coal brings meat and
bread, say, from the Argentine, and brings it all
the way. It does more. It pays across the
counter there for it out of its own pocket. We
cannot do without coal. In war time it is life
for us, and death for our foes. It not merely
fetches and carries for us, it makes the material
and the machinery which it transports. It bends,
it moulds, it strengthens, it purifies, it fills the
weapons of war. Steel, rifles, machine guns and
cannons mean coal; shells are made with coal;
the very explosive inside them is coal, and then
coal carries them right into the battlefield to help
our men. Coal is everything for us, and we want
more of it to win victories. Coal is the most
terrible of enemies, and the most potent of
friends. That terrible casualty list of 350,000
British soldiers was a list of casualties inflicted
by German coal; by the Westphalian miners
working in co-operation with the Prussian engi¬
neer, without stint, without reserve, without regu¬
lations, putting their strength at the disposal of
their fatherland. It is coal that did that. Yes,
and when you see that the seas over which the
British flag flies with impunity from realm to
realm and from shore to shore, are clear, when
you find that the German flag has vanished from
the face of the seas, who has done it? The
British miner helping the British sailor.”
Recent Coal Freight Charters.
Steamer Thorsa (Nor.), Philadelphia to Cardenas, coal,
p. t.
Steamer Rosina (Greek), Baltimore or Virginia to
River Plata, coal, 34s 6d, August-September.
Steamer Penlee (Br.), Virginia to Fort Militor, coal,
37^ August.
Steamer Winnebago (Br.), Virginia to Rio Janeiro,
coal, 34s 6d, prompt.
Steamer Mongenero (Ital.), Baltimore to West Coast
Italy, coal, p. t.
Steamer Camilla (Br.), Baltimore to Bocas del Toro,
coal, p. t.
Steamer Lovland (Nor.), Baltimore to Banes and
Preston, coal, p. t.
Steamer Southport (Br.), Atlantic Range to Mar¬
seilles, coal. 37s.
Steamer Andjik (Dutch), Virginia to Taetal, coal, $7,
August-Septemoer.
Steamer Penhale (Br.), Virginia to River Plata, (toal,
34s, August.
Steamer Teviotdale (Br.), Baltimore to west coast
Italy, coal, p. t., spot.
Steamer Luigi (Ital.), Baltimore to west coast Italy,
coal, p. t., spot.
Steamer Coila (Br.), Baltimore to Piraeus, coal, p. t.,
spot.
Steamer Winlaton (Br.), Virginia to La Plata, coal,
33s 6d, August-September.
Steamer Ronald (Nor.), Virginia to River Plata, coal,
34s 6d.
Steamer Jupiter (Span.), Philadelphia to Marseilles,
coal, p. t.
Steamer Zurichmoor (Br.), Virginia to west coast
Italy, coal, 39s 6d, August-September.
Schooner Catherine (Br.), Philadelphia to St. John,
N. B., coal, $1.90.
Schooner May T. Neville, Philadelphia to Porto Rico,
coal, p. t.
Steamer Eigerre S. Embirces (Greek), Virginia to
River Plata, coal, 34s, August.
Steamer Rio Preto (Br.), Philadelphia to Rio Janeiro,
coal, p. t., prompt.
Steamer The Warren (Br.), Virginia to River Plata,
coal, 34s, August-September.
Steamer Penare (Br.), Virginia to River Plata, coal,
34s 6d, prompt.
Steamer Evandale (Br.), Baltimore or Virginia to
west coast Italy, coal, p. t.
England’s Restriction Order.
Concerning the new English coal export re¬
striction order, which became effective last Fri¬
day, the Liverpool Journal of Commerce of
August 6th, says : “A new order in council pro¬
hibiting the export of coals to all countries, with
the exception of British possessions, on and after
the 13th inst., came as a surprise this week to
mystified coal owners. This is the most drastic
order yet issued, for it entirely closes the export
trade to foreign countries, while the quantity
sent to British possessions and protectorates is
almost a negligible one. Beyond the supplies
sent to Egypt the quantity of British coal sent to
other British possessions is practically nil, owing
to those countries having huge coal resources of
their own. The order caused a flutter of excite¬
ment amongst South Wales colliery proprietors,
who depend primarily upon foreign markets. The
subject was discussed at a meeting of the Coal
Owners’ Association this week. Anxious mem¬
bers were assured that the coal export committee
had no desire to interfere with exports provided
local consumers obtained adequate supplies of
coal. The South Wales coal owners have formu¬
lated a scheme whereby local consumers will be
assured of supplies. For coal owners were look¬
ing forward to a removal of the restrictions on
the export trade, and despite the assurance given
as to non-interference with exports several coal
exporters view the order with considerable mis¬
giving. Vvhen the restriction was first imposed
upon exports to certain countries coal owners
were assured that shipments would not be inter¬
fered with. Yet exporters were harrassed and
delayed by the operation of the first order in
council, and have witnessed their trade, built up
by years of hard work and organization, prac¬
tically given over to the competition of American
coal exporters. It is stated that the new order
was issued to prevent the undue rushing of sup¬
plies abroad following the new act regulating
prices at the pit head for home consumption. On
good authority, it is stated that licenses for ex¬
port will still be granted by the coal exports’ com¬
mittee, but they will have to be obtained for ship¬
ment to allied as well as neutral countries. The
coal owners, by their scheme, will prevent any
shortage of coal for home consumption, and look
forward, therefore, to exporting their surplus,
without undue restrictions. There is apparently
every desire on the part of the government to
avoid shackling the coal export trade, which in
its economic operation pays directly for our grain
imports, for Great Britain is importing every day
over a million pounds’ worth more goods than
she is exporting. It is imperative, therefore, to
encourage exports rather than restrict them.
When supplies for home consumption are as¬
sured, the shackles holding the export trade in
leash should be entirely removed with, of course,
the exceptions that are necessary in times of
war.”
Export Trade Briefs.
The Colliery Guardian of London, in a recent
issue, prints the following paragraph : “Notice
was yesterday given to ship owners that a con¬
siderable amount of coal is finding its way from
the United States to the Deutches Kohlen depot
at Buenos Aires, and that there is a reason to
believe that some of it is being carried in British
ships. The coal is shipped to agents, and ulti¬
mately delivered to the Deutsches Kohlen depot
or other concerns controlled by German interests.
Owners are requested to take all measures possi¬
ble to prevent their ships being used by charterers
as a means for carrying coal to agents who will
hand the coal on to German depots or companies,
and it is suggested that special care should be
taken to cover this point in all new charters.
Coal consigned to well known British firms es¬
tablished in neutral ports or to neutral govern¬
ments or municipalities can safely be carried,
but owners should take measures to prevent coal
being merely consigned to order or being con¬
signed to the order of any consignee other than
those specified above, unless he is known to be
well affected or has been approved by the board
of trade.” ,
Sunday’s cables told of the moving of coal
from Cardiff to French ports by barges. This
is a new venture, and was originated by Mr.
Ernest Plisson of Lysberg Company, Ltd., and
the Plisson Steam Navigation Company of Car¬
diff, with which enterprises, Mr. D. A. Thomas,
now representing the British government in this
country, is interested. It appears that steam ton¬
nage became so scarce that Mr. Plisson set about
to secure other tonnage and started to utilize the
hulls of schooners that were available, turning
them into barges. Two of these have already
been put into service, and they are towed by a
tug boat. Patent towing tackle has been fitted,
and it is believed the scheme will become quite
successful. It is stated that Mr. Plisson is said
to be prepared to spend $150,000 on the new
idea, and, if the preliminary work is a success,
liarges of 3,000 and 4,000 ton capacity will he
built. Recently there has been great delay in dis¬
charging coal loaded vessels at the French ports
because of congestion. It is stated that in cases
where there is a possibility of delaying of dis¬
charge, barges can be dropped, and returned
barges of pitwood picked up with minimum de¬
lay. Besides this, it is claimed considerable
breakage can be avoided by the barges themselves
being used instead of discharge being made' into
lighters. The barges, too, can stand delay, should
a vessel be unable to unload, with much lower
cost than an ordinary vessel ; and, if necessary,
are adaptable to inland waterways. On the re¬
turn voyage, should there be a scarcity of wagons
for the reception of the return cargo, or should
Ihere be adverse market fluctuations, the barges
can be kept waiting outside port — a course almost
impracticable with ordinary chartered vessels.
It is understood that the recent contract of the
Egyptian State Railways for approximately 360,-
000 tons of coal has been divided between Welsh
and American coals. Messrs. Watts, Watts & Co.
of London and Cardiff, securing the contract for
the Welsh coal, and the Consolidation Coal Com¬
pany of New York and Baltimore, the contract
for American coals. The Consolidation Coal
Company has been shipping the Egyptian State
Railways regularly now for more than three
years, and the renewal of this contract attests to
the satisfaction the coal is giving.
154
THE BLACK DIAMOND.
[August 21
General Review.
Rate Uncertainties Rule the Market With
the Future Trend of Prices
in Doubt.
Rate uncertainties have been a dominating
influence in the coal market this week. In
the first place, the Interstate Commerce Com¬
mission ordered reductions on rates to tide¬
water and to points local to carriers on which
anthracite is originated. This rate does not
go into effect until October 1st. There are
two ways of looking at this reduction, which
amounts to from fifteen to twenty-five cents
a ton. One is that the commission intended
it merely to give the independent operators
a chance to make some money off of their
coal, which they have not had heretofore. The
other way to look at it is that a new com¬
mercial force has inserted itself, and there
being a chance of more profit to the coal
companies, there is an equal chance that the
coal companies will more than divide it with
the consumers in order to increase their
volume of sales.
In the second place, the Interstate Com¬
merce Commission did not disturb the higher
rates on coal to the lake ports or to the
west. This means that on the lake move¬
ment, at least through the points on the west
shore of Lake Michigan and on Lake Superior
north of Chicago, the prices on anthracite
coal as figured on freight rates will be the
same as it was heretofore. However, the com¬
mission in a separate decision granted an in¬
crease in the freight rates to Chicago, and
hence in basing rates for points beyond of
twenty-five cents a ton. The coal companies in
Chicago have a rate situation which suggests a
continuance of the old prices from the lakes, but
a rise of price of twenty-five cents if the coal
is moved through Chicago. The indications
are at the minute that the coal companies
will dissolve this difficulty by letting the dock
prices rule and this will force the operators
who ship through Chicago to absorb the ad¬
vance in rates of twenty-five cents a ton. This
means principally that there will be a decrease
in the movement of coal through Chicago.
The market for the week has been further
disturbed by potentialities in the Ohio rate
situation. The United Mine Workers of Amer¬
ica, have gone before the industrial com¬
mission of Ohio, attacking the whole fabric
of rates applying from the mines in Ohio to
points in Ohio. No one is blind to the con¬
sequences of this movement if it succeeds.
This simply means that the Ohio rates will
apply on the movement of Ohio coal to Lake
Erie ports, and hence it will influence the price
at which that coal can be sold in the northwest.
In the meantime, any change made in Ohio must
also be made in western Pennsylvania. Thus
any readjustment of the rates in the Ohio
ports will mean an automatic adjustment in
western Pennsylvania rates to the same ports.
In the western territory the situation is
even more upset. The railways made a plea
for a general advance in rates. They evi¬
dently expected they would get an increase
on other commodities, but no increase on coal.
However, the commission did the reverse of
what it was supposed to do and gave an in¬
crease on coal, but not on the other commodities.
Now the western railroads are beginning to
awaken to a realization of the fact that they
have been given permission to do something
which it may not be diplomatic or financially
sensible to do.
In the meantime the railroad uncertainty is
transferred in double measure to the coal offices
and the situation is acting as a barrier to
future business, although it is inclined to in¬
tensify the current movement of coal.
Even so, this situation is not without its
difficulties. For example, if the higher rates
go into effect the western operators will, after
the first of October, have the same produc¬
tive capacity, but a smaller selling zone. That
will mean the congestion of tonnage and a
general lowering of the average price. This
throws price and production programs some¬
what out of joint.
_ Thus in a large way the freight rate situa¬
tion is dominating the coal market for the
week and nearly every other consideration is
subordinated.
Chicago Market.
Prices Are Uncertain Because of Rate
Disturbances and Buying
Is Heavier.
Office of The Black Diamond,
Chicago, August 19, 1915.
The Chica.go market has not been more dis¬
turbed in a long while than it has been in the
last week. In the first place, the commission gave
the railroads an increase of freight rates averag¬
ing close to eight cents a ton. This increase is
not to become effective until September 30th.
There is even some doubt as to whether the rail¬
roads will take advantage of their privilege and
whether, therefore, there will be any increase
at all. Still, the operators did not know, and the
retailers did not know for sure whether the in¬
crease would take effect. The dealers naturally
wanted to buy now to .get coal before the advance
went into effect ; the operators wanted to sell coal
now, rather than risk the uncertainties of the
market after the rise should take effect. The
buyers and the operators were, therefore, both
eager to do business, and as a matter of fact some
more business was done. It is expected that in
the next six weeks quite a volume of additional
business will be done on this account principally,
but as far as the future beyond the six weeks’
period is concerned, it is decidedly in doubt. The
operators do not know what the railroads are
going to do, and the carriers do not know them¬
selves as yet. If the rate goes into effect it must
limit the selling zone and that may force the dis¬
tribution of the same volume of coal in a smaller
territory, and hence have an effect upon the price.
On this account the market has been decidedly
uncertain and uneasy.
The anthracite rates also were officially con¬
firmed the latter part of last week. This means
that there will be an increase in the rates to Chi¬
cago and a correspondin.g increase to points be¬
yond of twenty-five cents a ton. This rate has
really been in effect now for a month. 'Up to
now, however, there has been no increase in
anthracite prices. It is doubtful whether there
will be, for the time being, any increase at all,
at least among the major companies. That has
made the market uncertain, but there has been
no increase in buying.
The smokeless market is not in the best of
condition. Some operators have had a little dis¬
pute among themselves recently over the matter
of prices, and this has not been to the advantage
of the producers. In Chicago proper, some con¬
cession was made for Au.gust shipments on con¬
tract business solely, but within the last week
some jobbers have forced a quotation of the same
price on spot business as well. What they call
the logic of the situation has ruled against the
better judgment of all concerned, and here and
there the price has broken. The standard opera¬
tors, however, have not reduced the price of
standard coal for spot sale, and in that respect
some little firmness is left. Lump and egg are
undisturbed at circular price of $2.25. Prices up
to Thursday were ;
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.30@3.45 $1.25@1.40
Lump and egg . 4.30 2.25
There is quite a range of prices on Somerset
county lump and egg coal. Some off .grade coal,
which is not the very best, is still selling for
$1.70. High grade coal is sold at $2.10. Medium
grades are selling at $1.90. One producer is mar-
ketiag the egg coal and is quoting that at $2 and
$2.10. Mine run is steady at $1.25. Prices up to
Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@4.15 1.70@2.10
Hocking coal has been moving in a little larger
volume, principally to the country retailers, who
are beginning to satisfy harvest demands. Coal
on track is sold locally at $1.40, but most of
the business is moving at circular of $1.50.
Prices on shipments direct from the mines up to
Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
154-inch lump . $3.15 $1.50
The splint market has improved both in tone
and in the average price. The reason is that there
is better buyin.g in the east and not so much of
the coal is being forced on this market. Also, not
so many operators are speculating on the absorp¬
tive capacity of the market as was the case re¬
cently. Prices up to Thursday were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
154-inch lump . $3.05@3.15 $1.16@1.25
The eastern Kentucky situation is improving
as the month advances. The market is absorbing
some more coal, but offerings are still free enough
so that prices have not advanced sharply. A bet¬
ter home and southern demand is also affecting
the situation. Prices up to Thursday were;
^ . F. O. B. F. O. B.
Eastern Kentucky— Chicago. Mines
Domestic lump . $3.25@3.80 $1.35@1.90
. 3.05@3.25 1.15@1.35
Franklin county coal is influenced by the con¬
sideration mentioned at the be.ginning of this
report. That is, retailers are beginning to buy
to get in the coal before the increased rate, if
any, takes effect. The price for the time being
is unchanged from the circular announced on
August 1st, but another rise of fifteen cents a
ton is expected on the first of September. Screen¬
ings are a little stronger— perhaps five cents a
ton. Prices up to Thursday were;
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2-inch screenings....
F. 0. B.
F. p. B.
Chicago.
Mines.
$2.65
$1.60
2.65
1.60
2.65
1.60
2.45
1.40
2.15
1.10
1.80
.75
There is still a division among the operators
in Williamson county. Some coal is quoted at
$1.60. Other prepared sizes are going at $1.50;
smaller sizes take a corresponding price. The
demand has been a little better within the week,
but the average running time of the mine is still
about fifty percent. Prices up to Thursday were;
Williamson County —
Lump .
Egg .
No. 1 washed .
No. 2 washed .
F. O. B.
Chicago.
$2.65
2.65
2.65
2.50
F. O. B.
Mines.
$1.60
1.60
1.60
1.45
Saline county mines are havia? a better demand
for steam coal, which is generally true of coal
mines all over the country. Screenings moved up
at least five cents a ton and in some cases ten
cents. The market showed clearly this week
that high grade screenings were scarce. Prices
up to Thursday were :
Saline County —
Lump .
Mine run .
Screenings .
154-inch lump...
F. 0. B.
F. O. B.
Chicago.
Mines.
$2.55
$1.60
2.15
1.10
1.80
.75
2.30
1.25
Clinton county operators are running mainly on
steam coal, namely, mine run, steam, lump and
screenings. There is a little domestic demand
at home, but it is
; not considered a factor.
Screen-
in.gs are rather
strong at seventy-five to eighty
cents, with prices higher in some spots.
Prices
up to Thursday
were :
F. 0. B.
F. O. B.
Clinton —
Chicago.
Mines.
Domestic lump....
$1.60
Egg .
l.*0
Nut .
1.30
Mine run .
1.10
Screenings .
. 1.57
.80
The Springfield market is unchanged as to
prices and tonnage. Quotations up to Thursday
were :
F. 0. B.
F. O. B.
Springfield —
Chicago.
Mines.
Lump .
$1.50
Egg .
1.50
Nut .
1.35
Mine run .
. 1.87
1.05
Screenings .
. 1.47
.35
Knox county operators are having an extraor¬
dinary run of demand for their screenings.
Whereas low grade screenings and even some
from Indiana are selling in this market around
sixty-five cents, the minimum price today seems
to be about eighty cents on Knox county, with
price to the trade ranging up to eighty-five _ and
ninety in places. This is a rather peculiar situa¬
tion, which does not obtain generally in the fine
coal market. Prices up to Thursday were;
F. O. B.
Chicago.
$2.37
2.37
1.87
1.67
F. O. B.
Mines.
$1.50
1.50
1.05
.80
Knox County —
Lump .
Egg .
Mine run .
Screenings .
One block of 10,000 tons of foundry coke was
sold one day this week and some other big con¬
tracts are bein.g placed. The demand is increas¬
ing steadily, which gives the operators an in¬
creased output. This increases production of the
crushed sizes, making them a little bit more diffi¬
cult to move. Prices, however, are steady, those
up to Thursday being:
‘ F. O. B.
Coke — Chicago.
Connellsville . ^
By-product, foundry .
By-product, egg and stove . 4.60@4.7U
By-product, nut .
Gas house . 3.75@3.90
No. 8]
155
THE BLACK DIAMOND.
Pittsburgh Trade.
Eastern Prices Improve But the Effect
Is Offset by Western Conditions —
Coke Is Booming.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., August 15, 1915.
With practically no change, the Pittsburgh coal
operator still hopes for better conditions in the
near future. August thus far has been a month
of disappointment for while steel mill activity is
in many instances near normal, with pig: iron the
feature in the iron and steel market, with heavy
sales and advanced prices in practically all the
leading centers, coal still refuses to respond to
the improved conditions, and until the demand
at industrial plants throughout the country calls
for products for home consumption, rather than
foreign war materials, there will be little im¬
provement. The lake trade is practically an
eliminated factor — though it is assumed that in
the very limited period that any lake shipping
will have to be done — it will be “rush” orders
when it comes, but the possibility of shipping
anything like the season’s regular demand is not
thought of. Current sales are, both in price and
delivery, largely dependent on the necessity of
buyers, or sellers’ order books. Prices generally
are very firm for any forward delivery, but little
is sought and when quotations are made they
are subject to immediate acceptance, the seller
feeling quite confident that future developments
will be to his advantage, and only proposes sell¬
ing a limited output at today’s prices, the future
to average up the season.
The talk through the newspapers of the Penn¬
sylvania railroad preparing large storage coal
yards at Altoona and elsewhere has created some
little life among producers. It is generally sup¬
posed this railroad is in a position to see as far
ahead as can be seen by any interest, and that
with the continuation of European conditions the
demand upon this country for export coal will
be hard to meet, and together with the fall do¬
mestic and any increased industrial business, that
six weeks from the present may see a runaway
market, or at least a hard and strong one with
prices considerably advanced.
Today no change is reported in prices, slack
possibly holding still firmer, but no large demand.
We have from reliable sources that a large Pitts¬
burgh operator closed a deal the past week for
760 tons mine run daily at $1.20 per ton, and this
deal was probably made in anticipation of higher
prices. Another deal for 1,000 tons daily will
probably be closed by the same company by the
time this is in press. These are straws, but are
an indication of which way the wind is blowing,
and as suggested some time ago in this column,
should warn those that are still out to get under
cover.
That industrial conditions are improving in the
Pittsburgh district is shown by the large number
of calls for men received by the distribution
branch of the United States Immigration Service.
Yesterday a call for 200 coal miners was re¬
ceived from the Quemahoning Coal Company in
Somerset county. The wages range from $50 to
$100 per month. Steady employment is promised.
Uver 300 miners are also asked for by the New
River Association, which operates a number of
mines in Fayette county. West Virginia. This
company also promises good wages and steady
work.
The coke market seems to harden somewhat,
though no extra large tonnages are being called
for by the merchant trade. One deal was closed
for a fair quantity during the week at $1.80 for
the balance of 1915. Some spot furnace is to
be had at last week’s figures, but producers are
wary of contracts, the pig iron situation placing
coke on a much firmer basis than it has been for
.some time. Foundry grades remain unchanged,
with slightly increased demand, $2.40 to $2.65
being the range quoted.
Personal and News Items.
John H, Jones of the Pittsburgh-Buffalo Com¬
pany, is looking after business in the eastern
market this week.
The ^arnegie Steel Company has notified its
salesmen to quote $1.35, Pittsburgh, on plates,
shapes and steel bars, this quotation being $1 a
ton higher than the previous figures.
B. F. Hoffacker, successor to the late John W.
Boileau, expert mining engineer, is in Kentucky
inspecting coal lands in the interests of clients.
H. S. Odbert, president the Odbert Coal Com¬
pany, Cleveland, Ohio, is a Pittsburgh visitor
with the coal trade this week.
The LaBelle Iron Works’ directors of Stuben-
ville, Ohio, let a contract for a $2,000,000 by¬
product coking plant to the H. Koppers Com¬
pany of Pittsburgh last Tuesday. It will consist
of ninety-six ovens. It will be built on the West
Virginia side of the river, opposite the plant
there, and a bridge to cost a half million dollars
will be built to connect the West Virginia plant
with the big plant on the Ohio side.
A deed, one of the longest ever recorded in
Washington county, containing 276 printed pages,
was filed last week. It is a conveyance from
George H. Calvert, master, and the Union Trust
Company of Pittsburgh, to Scott Hayes of Pitts¬
burgh, for the coal underlying 169 tracts or farms
in West Bethlehem, East Bethlehem, Amwell,
North Strabane, Chartiers and Smith townships,
Marianna and Canonsburg, Washington county,
and Armstrong, Green and Allegheny counties.
The total area is not given, but it is the largest
single sale of coal land that ever took place in
western Pennsylvania. The consideration named
was $1,500,000. This coal land was originally
the property of the Pittsburgh-Buffalo Company,
which went into the hands of a receiver in 1914.
The principal creditor was the Union Trust Com¬
pany of Pittsburgh, which held a mortgage
against the coal land of the Pittsburgh-Buffalo
Company for $1,750,000, and George H. Calvert
was appointed master to make the sale of the
property of the defendant company. The amount
of the mortgage was disputed, but the lower
court held that this amount was correct. An ap¬
peal was taken from this decision by John H.
Jones, one of the receivers, to the supreme court
of the state, but the decision of the lower court
was affirmed. On March 23, 1915, the court
ordered a public sale of the property of the de¬
fendant company to satisfy this mortgage, but
the sale was adjourned from time to time until
July 15. The properties were exposed separately
but no bids were received and the entire acreage
of 169 tracts was offered as a whole to the
Union Trust Company. It directed that the deed
be made out in the name of Scot Hayes. It re¬
quired $1,500 in revenue stamps on this deed,
which was represented by two stamps, one of
the $1,000 denomination and the other of the
$500 denomination.
Twin Cities Trade.
Minneapolis and St. Paul, August 19. — (Spec¬
ial Correspondence.) — Market conditions in this
territory on dock coal are not as well defined as
they were several weeks ago. Early in July prac¬
tically all the dock companies, excepting one
named a circular price on standard grades of
lump bituminous coal of $3.40 f. o. b. docks. One
company sent out its circular at the old price of
$3.30, and continued accepting business on that
basis. Practically all the other companies have
now met this price. As a result of this condi¬
tion some abuses in the trade which were being
eliminated, have again crept into the business.
Except for steam business, many of the com¬
panies did not make contracts with dealers on
soft coal for their yard use early in the season.
These contracts in the past, it is claimed, have
not been binding on the dealers, and dock com¬
panies felt as if they should not be obliged to
hold the bag if the winter developed increased
business and higher prices. Recently, however,
the trade has been slipping backward in this re¬
spect and a few dealers’ contracts have been
made at the present going price.
It is expected that present conditions will cor¬
rect themselves when the crop begins to move
and cars are in shorter supply. Most of the dock
companies desire to eliminate the experience of
a year ago so that they may have a small balance
on the profit side of the ledger next spring. They
realize that a repetition of price-cutting and
other abuses of a year ago will not bring this
about.
In the Minneapolis steam trade the price sitii-
ation has also been weak, but an improvement is
expected. One contract for smokeless screenings
is reported at forty-five cents off the circular
basis, and a few other slips have occurred, but
with the active consuming season only a few
weeks distant, it is to be expected that prices will
be on steadier basis within the next thirty days.
Harvest is in full swing all through northwest¬
ern territory, and a small amount of threshing
has been done. Labor is becoming scarce in the
harvest fields and the railroads are preparing to
move an e.xceptionally large crop. Threshing
coal is moving more freely, but the demand is
not as large as in previous years on account of
the increasing use of gasoline and kerosene
tractor engines for this purpose. Immediate de¬
mand for all grades of coal is quiet.
Current quotations on the standard coals sold
in this territory are as follows:
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 5.50 6.70
Buckwheat . 4.00 5.20
During August a discount of ten cents per ton is
allowed on all anthracite except pea and buckwheat,
which prices are net.
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.10 $4.25@4.36
Splint, dock run . $3.10 $4.06
Hocking, screened lump and stove. 3.30@3.40 4.26@4.36
Hocking, dock run . 3.OO 3!96
Youghiogheny, gas, lump and stove 3.30@3.40 4.26@4!36
Youghiogheny, gas, dock run.... 3.10 4.06
Pittsburgh vein, lump . 3.30@3.40 4.26@4.36
Pittsburgh vein, dock run . 3,00 3.96
Pocahontas, screened lump or egg 4.75 5]71
Pocahontas, screened lump and
egg mixed . 4.50 5.46
Pocahontas, mine-run . 3.25 4. 21
Cannel, lump . 5.25 6!21
Smithing, bulk . 4.25 5.21
Smithing, in 100-lb. sacks . 6.00 6.96
Briquets, anthracite . 5. 00 5.96
Briquets, smokeless . 5.00 5,'96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows :
Southern Illinois chunks . fl.50@1.70 $3.70@3.90
Southern Illinois egg .
Southern Illinois No. 1 nut . 1.50@1.60 3.70@3.80
Southern Illinois No. 2 nut . 1.25@1.40 3,45@3 60
Southern Illinois No. 3 nut . 1.10@1.25 3.30@3.45
Southern Illinois run of mine... 1.15@1.25 3.35@3.45
Southern Illinois 2-in. screenings .70@ .75 2.95 @3.00
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
Twin Cities Notes.
Harris Gagnon, of the Elliott Fuel Company,
Minneapolis, has returned from a two weeks’ va¬
cation trip spent at Madison Lake and Mankato,
Minn. Mr. Gagnon spent most of the time
motoring, having covered 900 miles while he was
absent from Minneapolis.
Edmond H. Pendergast, for more than five
years traveling salesman for the Purity Coal
Company in this territory, passed away Sunday
at Hopewell hospital in Minneapolis, after an ill¬
ness of over a year. Death was caused by tuber¬
culosis. Mr. Pendergast was thirty-nine years of
age and previous to going with the Purity Coal
Company was with the Powers Fuel, Feed &
Transfer Company, Minneapolis, as chief clerk.
He leaves a wife and one daughter. Interment
was at his boyhood home, Dassell, Minn.
Omaha Trade.
Omaha, Neb., August 19.— (Special Corre¬
spondence.) — ^Developments of the week appear
to have brought about no change of special im¬
portance in conditions affecting the coal trade in
this territory. The situation remains rather more
encouraging than otherwise, due to the booking
of a few small orders, which in aggregate,
amount to considerable tonnage.
In spite of the fact that it has rained almost
continually through this territory since Sunday,
very little refuse or consignment coal is being
offered.
Although dealers have not been able to move
any coal to speak of on account of impassible
roads, they are beginning to realize the necessity
of getting their bins filled in order to avoid the
possibility of further increases in price.
Very few orders for anthracite have been com¬
ing in, owing to the dealers getting the impression
from recent newspaper items that the freight
rates on anthracite coal would be reduced all
over the country.
General business showed increased activities
last week, but continued rains this week, how¬
ever, have had a depressing effect.
The following prices on coal prevail :
Southern Kansas — Mines. Omaha.
Nut .
$3.20
Slack .
_ 1.35
2.70
Franklin County —
Lump .
_ 1.45@1.60
3.75@4.00
Egg .
_ 1.45@1.60
3.75@4.00
Nut .
_ 1.45@1.60
3.75@4.00
Williamson County —
Lump .
3.65@3.75
Egg .
3.65@3.75
Rock Springs —
I.ump .
5.85
Nut .
5.35
Arkansas Anthracite —
Lump .
6.60
Broken sizes .
_ 3.95
6.85
156
THE BLACK DIAMOND
[August 21
Cincinnati Trade.
The Interior Trade on Smokeless Is Slow,
Offset by a Brisk Demand
at Tidewater.
Cincinnati, Ohio, August 19. — (Special Cor¬
respondence.) — “Fewer cancellations and more
orders” is the rule now in the splint market, as
expressed by prominent operators here. Heavy
cancellations and serious hold ups in delivery are
reported by some smokeless operators, regarding
lump and egg product in the interior, but heavier
demand and bettering prices in the export trade
to balance. Others, however, say that business is
booming with them and they are hard put to it
to fill orders.
Betterment in some of the grades of West
Virginia coal are shown by average quotations
as follows : Large block, $1.50, and small block,
$1.35 ; egg, $1.25 ; nut and slack, spot sixty-five
cents, and contract, seventy-five cents, and run
of mine, ninety cents. The betterment is abso¬
lutely a fact although some of the companies are
so thoroughly saturated with pessimism they do
not see the betterment because it does not come
with a whoop and hurrah. The spot market is
better and selling is of such a character in that
market that many dealers are inquiring for con¬
tract blanks.
The lake movement is becoming somewhat
more lively but in the ultimate it has proven un¬
satisfactory.
Cincinnati Trade Notes.
Among western visitors to Cincinnati this week
is E. W. Tildesley, Detroit representative of the
Halmar Coal Mining Company.
The VVyatt Coal Company this week removed
its headquarters from the sixteenth floor of the
First National Bank building to the ninth floor
of the same building, occupying offices Nos. 906-
907-909-911 of the floor.
Karl F. Bierach, who was manager for the
Pittsburgh-nuffalo Company when it closed of¬
fices here the first of the month, has entered the
employ of the Halmar Coal Mining Company of
this city, and Miss Barrett, the stenographer here,
has entered the office of The Norfolk & Chesa¬
peake Coal Company.
F. .A.. Kruse, traffic manager of the Middle
West Coal Company, has returned this week
from a three weeks’ vacation in the Kentucky
mountains in and around Paintsville where he has
many friends. Golf, baseball and other amuse¬
ments gave him considerable tan and lots of
health and energy to wrestle with the problems
of coal traffic this coming season.
Clyde E. Darragh, the well known representa¬
tive of the Middle West Coal Company in west¬
ern Michigan, spent several days the past week
with the offices of the company here and a few
days with his family, which is spending the sum¬
mer with relatives in Franklin, a short distance
north of Cincinnati. Mr. Darragh left early in
the week for his headquarters in Kalamazoo to
begin field work for the coming season.
Friends of H. L. Smith, president of the newly
incorporated Southland Coal Company, with
headquarters in Detroit, were astonished to learn
that he has sold out his interest in the company
and has resigned as president, effective Septem¬
ber 1st. It is reported that the company will
abandon the Cincinnati offices on that date. Mr.
Smith formerly represented the H. T. Hackney
Coal Company of Knoxville, Tenn., and assisted
in organizing the Southland Company, following
the withdrawal of thfe Hackney Company from
this field some months ago. Mr. Smith is unde¬
cided just what to do and may hold the offices
here for himself.
In a wreck on the Coal River branch of the
Chesapeake & Ohio Railway, Monday this week,
information comes to the city that D. A. Vowles,
formerly manager in Cincinnati for the Paint
Creek Collieries Company, and of late represent¬
ing the Elmer Miller Coal Company, Toledo, was
badly injured, being cut on the head and other¬
wise shaken up and bruised. The wreck was in
the Pinacle tunnel near McCorkle, and was
caused by the falling of a heavy rock on the
smoker and baggage car of the train as the
train passed through. J. C. Fennimore, a wealthy
coal land owner and operator of Huntington, was
among the killed, and A. S. Moore of Athens,
Ohio, a coal operator also, was among the in¬
jured. Five persons were killed.
The Wyatt Coal Company announces that re¬
ported sale of eight of their best producing mines
with modern equipment, and operated by the
IHain Island Creek Company, is not true and that
the company will be operated and its product
sold by the Wyatt Coal Company as always.
“Some of our competitors have made us some
very flattering offers on our Logan county prop¬
erties but none of them have been accepted,”
says the announcement. This refers to the op¬
tion taken by the Island Creek Coal Company on
these properties, together with the extension of
the option, each option, it is said, having been
clinched by a deposit of $20,000. The extension
of the option expired August 10 without accept¬
ance of the terms by the optioning party.
The Fulton, the tug steamer which went to the
bottom of the Ohio river just above the Cincin¬
nati landing during the big storm of July 7th,
was towed up the river to Pittsburgh by the
Enterprise this week and will be placed in dock
there for repairs by the Queen City Coal Com¬
pany. The body of Captain Bradford Williams
of the Fulton, who went down with the steamer,
has been recovered and was buried from his late
home in Covington. The Convoy, another tug
steamer, which went down at the same time, car¬
ried the body of Chief Engineer John Smith
down with it. Thomas McGuffin, a diver of
Pittsburgh, and F. W. Metre, a diver of Point
Pleasant, W. Va., are here to try to recover the
body of the chief engineer and also to place
chains about the Convoy to raise it and restore
it to service, the Hickey company believing that
it can be so restored despite adverse reports by
other divers, the insurance having been settled
and out of the way. The boat is in thirty-five
feet of water.
Denver Trade.
Denver, August 19. — (Special Correspondence.)
— The month bids fair to pass out with little of
the strength that was expected. The country
demand still continues very light and there is
practically no disposition to place any orders for
future requirements. Present indications are that
threshing in northern Colorado and in Wyoming
will be delayed two weeks longer than usual on
account of excessive rains. In other sections
dealers seem to be supplied for the present at
least, to meet all threshing requirements.
Lignite production is still very small. In the
bituminous districts Routt and Walsenburg will
produce a tonnage for the week equal to sixty
per cent of normal. Canon City mines that are
open are averaging about two days a week. Trin¬
idad output will run seventy-five per cent of
normal this week on account of steam contracts
and old bookings of storage.
The slack situation is practically unchanged.
Demand for all grades is light but there is little
surplus. Prices continue irregular.
Prices for lignite coal f. o. b. mines are as
follows : Denver delivery, lump, $2.35 to $2.65 ;
mine run, $1.50 to $1.65 ; slack, $1.05 to $1.25.
For country delivery, lump, $2.50; mine run, $1.55
to $1.65 ; slack, $1.05.
Canon City District — Lump Nut
For shipment May and June . ?2.60 $2.00
For shipment July and August . 2.75 2.25
Add 25 cents to above prices for washed nut.
Walsenburg District —
For shipment May .and June . 2.50
For shipment July and August........ 2.75
Washed nut 25 cents per ton additional.
Chestnut, $1.25 for entire season.
Trinidad District —
For shipment May and June . 2.00
For shipment July and August . 2.00
Routt County District —
For shipment May and June . 2.50
For shipment July and August . 2.75
Western Slope District —
For shipment May and June . 2.25 ....
For shipment July and August . 2.50 ....
From Baldwin, shipments for points east of Denvet
are 75 cents per ton less than Walsenburg prices.
2.00
2.25
1.71
1.71
2.01
2.21
Denver Local News.
The Rocky Mountain Fuel Company has agreed
to take hack the former strikers in the Louisville
district and the men will be given work later
with the resumption of winter activity. The de¬
cision was reached upon the recommendation of
officials who feared trouble during the winter
months should the men remain unemployed.
According to reports from Sheridan, Wyo.,
extensive improvements which include a new
screening system at the Monarch mine, which
calls for the expenditure of over $17,000, are to
be made in September. The Monarch’s daily
capacity is 4,000 tons. Much of the coal is
shipped to Washington and Oregon. Chicago
men are at the head of the reorganization re¬
cently effected. They are: M. F. Pettier, presi¬
dent; Granger Farwell, treasurer, and A. G. Les¬
ter, secretary.
Duluth Trade.
Duluth, Minn., August 19. — (Special Corre¬
spondence.) — Maj. E. D. Peek, government engi¬
neer of the Duluth district, has just issued his
report of coal receipts in this harbor for the last
two months, and it shows a considerable falling
off from a year ago. For the season up to the
end of July there is shown a difference of 1,010,-
611 tons of hard and soft coal in favor of the
corresponding period last year. The big loss is
in soft coal, for hard coal shows an increase of
14,487 tons. Soft coal receipts this year are
1,025,098 tons less than a year ago.
How much the lack in receipts will affect the
supply for the northwest is problematical and
cannot be determined as yet for there are still
four months in which coal can come up, and it
is generally believed that the receipts during
those periods will show continued gains. They
will not have to be as heavy as the receipts of
last year to give adequate stocks here, unless the
demand for harvesting purposes is much greater
than expected — and it is expected to be greater
than usual because of the gigantic crop that is to
be threshed — for there was a big “hold-over”
stock on hand when spring broke this year, the
demand last fall and winter being much smaller
than usual. So the docks are still pretty well
stocked up.
The first part of the season showed very little
coal moving, and it has not improved very greatly
since. Vessel men have been kicking a good deal
about lack of cargoes, for, from their point of
view, an ideal season consists of plenty of iron
ore or grain to take down the lakes, and plenty
of coal to bring back. However, the coal men
or the “ultimate consumer” are not very likely
to get fussed about that so long as there is
enough of a supply on hand to go around. If
the demand from the northwest is not much bet¬
ter than it was last year, the supply is assured
now.
Receipts of hard and soft coal for the months
of June and July in both
years were as
follows •
Tons
Tons
1915
1914
Soft .
. 1,984,872
2,450,526
Hard .
634,160
Totals .
. 2,489,440
3,084,686
Receipts for the season
Up to July 31
for both
years were :
Tons
Tons
1915
1914
Soft .
. 2,766,661
3,791,759
Hard .
. 780,368
765,881
Totals .
. 3,547,029
4,557,640
The receipts of soft coal this season to the end
of July were of the following classifications :
Youghiogheny, 1,705,125; Hocking, 86,691;
Pocahontas or smokeless, 317,058 ; splint, 578,622 ;
cannel, 31,799; smithing, 9,339; Tennessee, 5,067;
No. 8 or East Ohio, 32,960.
The shipments have shown a proportionate
falling off, not in actual tons but in percentage.
There were shipped from the head of the lakes
in July of this year, 12', 855 cars of all kinds of
coal, against 15,099 cars during the same period
of 1914. For the season, up to the date men¬
tioned, there were shipped 110,488 cars against
121,030 cars a year ago, a decrease this year of
10,642 cars. In figuring the number of tons
shipped, it is estimated that there is an average
of about thirty-two tons to a car, which would
make the following comparison up to July 31;
Tons
191-1 3,872,960
1915 3,535,610
Decrease this year . 337,344
Duluth Trade Notes.
W. ri. Fobes, treasurer of the Northwestern
I'uel Company, is here from Minneapolis, Minn.,
attending the annual conventions of the Retail
uredit Men’s National Association and the Na¬
tional Association of Mercantile Agencies.
Superintendent Willis W. Spring, of the Car¬
negie Dock & Fuel Company, accompanied hy his
wife, ha$ heefi spending his vacation on board
the steamer Shenango, taking a round trip on the
Great Lakes. They returned on Wednesday.
The Ber\vind Fuel Company is, just now, add¬
ing new equipment to its West Duluth dock,
which will make it one of the fastest docks at
the head of the lakes. It is installing three new
seven and one-half ton buckets and one clean-up
clam with a spread of twenty-four feet. With
the new equipment a 10,000-ton boat can be dis¬
patched in nine hours.
No. 8]
THE BLACK DIAMOND
157
Indianapolis Trade.
Indianapolis, Ind., August 19. — (Special Cor¬
respondence.) — Not much change has been noted
in the Indiana coal field during the last week. It
would be difficult to point out any marked change
for the better or worse in any week of the past
six months, during which the trade has drifted
along at a low water mark. It does not appear
even yet that there has been any appreciable im¬
provement, but many operators are saying that
the outlook is growing better. It is believed that
most of them are dealing in futures and that the
wish is father to the thought. There are more
inquiries for steam coal than there have been
for many weeks. Some factories are starting up
again after a long shut down, but many are not
preparing to turn a wheel during the next few
months. The effect of the placement of war
orders in this country is being noticed in several
localities in Indiana, which may help the coal
trade quite a little. Operators and dealers are
confident that because of the big crops business
will be better in Indiana next winter, yet the
heavy rains have ruined fifty per cent of the
wheat crops, and the corn may be damaged seri¬
ously unless the weather becomes more favorable.
However, there is more cause for optimism than
there was a short time ago. The demand for
domestic coal is improving slightly, but summer
prices still prevail. The situation is not as favor¬
able to the buyers as is generally the case at this
time of the year, due probably to the fact that
the average dealer felt that he could get all the
domestic coal he wanted at his own prices, and
to the fact that it has been supposed that the
operators, being short of orders, would turn out
domestic as fast as it was required. Not many
dealers have laid in stocks. There is less domes¬
tic coal in the Indiana yards now than usual for
August. There has been practically no free coal
on the market. The operators naturally are in
position to furnish coal promptly, but the retailer
is not in a position to make terms. It is antici¬
pated that prices will be advanced twenty-five
cents a ton by all of the retailers the first of Sep¬
tember.
The following prices are being quoted by the
Indiana wholesalers :
F. O. B.
F. O. B.
Indiana —
Mines.
Indianapolis.
No. 4 mine run .
$1,10@1.20
$1.60®!. 80
Nos. 5 and 6 mine run .
1.00@1.05
1.50(®1.55
No. 4, 1^-inch steam lump .
Nos. 5 and 6, 1^-inch steam
1.25@1.35
1.75®1.85
lump .
1.15(®1.25
1.65®1.75
Nut .
1.20(gl.30
1.70@1.80
Egg .
1.30(®1.40
1.80®1.90
No. 4 domestic lump .
1.50
2.00
Nos. 5 and 6 domes,tic lump .
1.40
1.90
No. 4 screenings .
.75@ .80
1.25®1.30
Nos. 5 and 6 screenings .
.60® .70
1.10(®1.20
No. 1 washed coal .
1.75
2.25
No. 2 washed coal .
1.65
2.15
Brazil block domestic .
2.00
2.50
Southern Indiana Field —
Domestic lump .
1.40
Mine run .
1.00@1.05
Screenings .
. .60® .70
The board of works here has awarded to the
Indianapolis Coal Company the contract to sup¬
ply coal for the city hall, city asphalt plant and
the street cleaning department.
Louisville Market.
Louisville, Ky., August 19. — (Special Corre¬
spondence.) — General improvement in business
has been reflected to some extent in the coal
trade, continuing during the last week. So far
this improvement in the coal business is limited
to a somewhat broadening demand for both
steam and domestic coal without any perceptible
advance in prices. The season still remains ex¬
traordinarily backward insofar as deliveries of
domestic coal are concerned, and there is no rea¬
son to change the prediction made in these col¬
umns from time to time that during at least a
limited period of this fall and winter there would
lie an unprecedented rush for domestic coal that
will tax the capacity of mines and carriers.
An announcement of great interest to southern
coal men was received from Wa.shington several
days ago to the effect that the Interstate Com¬
merce Commission had ordered that the published
divisions of rates from mines in Virginia to the
southeastern Carolina points, located principally
on the Atlantic Coast Line, Seaboard Airline,
and connections, and designed with a view to
securing Virginia shippers in the fuel contracts
of several of these railroads, must be discontin¬
ued by September 1.5. Apparently this decision
will reopen the fuel contracts closed several
weeks ago by several of these southeastern car¬
riers for more than one million tons of coal.
Shippers in the Kentucky-Tennessee fields are
hopeful that the readjustment of the basis of
divisions of southeastern rates will be such as
to make it possible for them to secure at least a
portion of this much desired tonnage.
While there is an increase of activity in the
delivery of domestic coal, both in the large cities
and in the country points, this is retarded to a
considerable extent by the incessant rains. The
crop situation, however, is so very favorable
throughout most of Kentucky that the consump¬
tion of domestic coal is expected to increase
above previous records during the coming sea¬
son, and to be maintained on a satisfactory basis
At Louisville competition between river and rail
dealers has reached an acute stage, with all deal¬
ers losing money by making prices which would
not be profitable even were a large volume of
coal moving. Unless Louisville retailers abandon
their price cutting program and fix a fair price
for their commodity, the outlook for the fall and
winter trade for them is exceedingly blue.
Operators in general are cautious about quoting
prices on domestic coal far in advance, most of
them declining to quote beyond October 1st.
However, it is not anticipated that a very large
advance will be secured during at least the early
part of the month of September, and that not
until October will much heavy buying be in evi¬
dence.
Prices on eastern Kentucky-Tennessee coals
are about as follows :
Block coal . $1.35@2.00
Egg coal . 1.10@1.35
Steam run of mines . .95
High grade nut-slack . 50@ .(10
Second grade nut-slack . 25(® .40
Detroit Trade.
Detroit, Mich., August 19. — (Special Corre¬
spondence.) — Without attaining any large amount
of activity, business in the Detroit market is hold¬
ing comparatively steady, the present conditions
being a gratifying improvement over those to
which the;, market was subject earlier in the
summer.
Prices in general are rather more steady than
a month ago, although there is still some yielding
of concessions to hasten the movement of con¬
signment coal, where demurrage is threatened.
The quantity of such coal on tracks is reported
materially less than a month ago.
Some of the local shippers fear, however, that
with a greatly diminished movement of coal over
the lake route, as compared with previous sea¬
sons, there may develop on the part of some
mine owners, an inclination to increase their ship¬
ments of consignment coal to the Detroit mar¬
ket. Such a development, should it occur, would
speedily renew the unsettled conditions which
made it practically impossible to do any business
on a mine order basis in the earlier months of
the year.
Orders of small size continue more numerous
in the steam coal trade than heretofore. While
these make a gratifying total, the business has
not yet proceeded beyond a stage, where, in the
opinion of shippers, it constitutes rather a sug¬
gestion of better times than a realization of ma¬
terial improvement. With the approach of the
threshing season in agricultural sections of the
state, there is apparently developing a stronger
inquiry for steam coal from a number of the
small towns and cities in the interior of the
state.
The amount of business being done in domestic
coal is still far from satisfactory as neither the
retail dealers nor the consumers seem to be pur-
suaded by the arguments of the shippers that the
prospective rush of orders a few weeks later in
the season, is likely to bring about conditions,
that not only will cause trouble at the mines,
but will be likely to result in slow delivery, due
to inability of railroads to provide the necessary
equipment to handle shipments.
The rail lake business, of which much was ex¬
pected at the opening of the navigation season
has dwindled away, until the upbound carrier,
with coal cargo, is now rather the exception, as
the greater number of freighters are making the
upbound trip without cargo. With shipments of
soft coal received at Duluth and Superior to
August 1 falling short of the receipts for the
similar period of 1914 by 1,02'5,098 tons, while
the storage docks remain so crowded that ves¬
sels find difficulty unloading, the outlook is not
encouraging for vesselmcn, while shippers are
predicting some coal consumers of the northwest
mav have to depend on all rail shipments for
their supply.
Interest in anthracite seems difficult to awaken
despite the fact that the present month marks
the end of the discount period. Orders are of
small volume and far from numerous.
Prices in the local market on mine shipment
orders are as follows;
West Virginia Gas — •
F.O. B.
Mines.
F. 0. B.
Detroit.
Three-quarter lump .
$2.35®2.40
Mine run .
2.20
Slack .
1.95
West Virginia Splint—
Four-inch lump .
2.75
Two-inch lump .
2.55
Three-quarter .
2.60
Mine run .
2.25
Nut, pea and slack .
1.95®3.05
Smokeless —
Lump and egg .
3.85
Nut .
3.35
Slack .
Open
Mine run .
- 1.25
2.85
Kentucky Splint —
Lump .
2.70
Egg .
2.50
Nut, pea and slack .
Open
Fairmount —
Three-quarter steam lump. . . .
. 85® .95
2.25@2.35
Mine run .
2.10®2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
_ 1.50
2.65
Shaker egg and nut .
- 1.15
2.30
Domestic lump .
2.50
Three-quarter lump .
- 1.25®1.30
2.40®2.45
Mine run .
2.15®2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
- 1.15
2.30
Mine run .
- 1.05
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
- 2.50
3.65
Cambridge —
Three-quarter lump .
_ 1.20
' 2.35
Mine run .
2.25
Pomeroy —
Two and three-inch lump .
- 1.60
2.75
Egg .
2.50
Slack .
Open
Increased consumption of coal by Detroit City
Gas Company, one of Detroit’s largest users of
coal is anticipated with the completion of exten¬
sions of plants and mains, for which the com¬
pany will expend part of the proceeds of a new
issue of $7,500,000 of stock. The increase, which
doubles the company’s former capital, has been
approved by the Michigan railroad commission.
The company plans to distribute $1,792,000 of the
new stock to its stockholders as a stock dividend.
Ruling on Steam Sizes.
One of the interesting points brought out by
the new schedule of rates on anthracite coal to
take effect October 1st is the change in the
tidewater rates on the steam sizes. For instance,
the order of the Commission specifies pea and
smaller sizes at an average price of $1.30 per
ton from the re.gions to New York tidewater
ports, which is a reduction of ten cents per ton
on pea coal. For years, buckwheat, rice and
barley have been shipped on a lower rate than
pea coal, for instance, to Port Reading, bnck-
wheat taking a rate of $1.25 and rice and barley
$1.10. To .South Amboy from the Scranton re¬
gion, buckwheat, rice and barley have taken a
rate of $1.25. From the Schuylkill region, a
rate of $1.15. To Weehawken, the rate from
the Scranton region has been $1.30 on buckwheat
and $1.15 on rice and barley. Therefore, should
the railroads advance the rates on the steam
sizes, as they are permitted to do under the Com¬
mission’s ruling, this would mean an increase of
from ten to twenty cents per ton on the steam
sizes, and the members of the trade seriously
doubt if they could continue to sell the present
volume of anthracite steam coal in this market in
competition with soft coal. This competition has
grown more serious from year to year due to
the fact that many of the consumers have equipped
their plants so that they can burn bituminous coal
without violating the smoke ordinance of the
city.
It was stated that the presidents of the an¬
thracite railroads and the anthracite coal com¬
panies would have a general meeting early this
week to consider the question of an appeal from
the decision of the Interstate Commerce Com¬
mission. Owing to the fact that quite a number
of these people are out of town, it has so far
been found impracticable to arrange for a general
meeting.
Some of the coal experts point out at this
time the inexpediency of the public taking seri¬
ously some of the tabular and other alle.ged in¬
formation in circulation relative to the gains or
losses in tonnages or profits of the coal com¬
panies, due to the Commission’s recent decision.
158
THE BLACK DIAMOND
[August 21
New York Trade.
New Freight Rates Muddle Anthracite
Market — Bituminous Improve¬
ment Permanent.
Office of The Black Diamond,
New York, August 19.
The anthracite trade continues in a very
unsettled state. The situation this week is
very much muddled over the action of the
Interstate Commerce Commission last week,
ordering a change in the anthracite freight
rates to become effective October 1st. This
in effect, means a reduction of fifteen cents a
ton on rates to tidewater on prepared coal,
a reduction of ten cents a ton on pea coal,
while the carriers are permitted to advance
rates on steam sizes ranging from ten to
twenty cents per ton. To line points, the re¬
duction in rates are very radical in some in¬
stances. The reductions are so very heavy at
certain points that trade at these points in
position to take coal, are expected to defer ship¬
ments until the new rates go into effect. This
means that throughout the large all-rail terri¬
tory, trade will practically be suspended for
five or six weeks.
New York trade, especially are interested in
the changes on the rates for steam sizes. A
great deal of buckwheat coal comes to New
York, where it is sold in competition with bi-
tuminious coal. The question that is para¬
mount at the moment is, can the steam sizes
stand an advance in rates at this time and
sell in large volume as has been the case for
the past several years? It is generally be¬
lieved that if the railroads put the advances
on the steam coals, that the Interstate Com¬
merce Commission ruling allows them, that the
market for steam coals in New York territory
will become very much restricted. It is pointed
out that in the past few years the burning
of soft coal in New York City, formerly a
serious violation of the smoke ordinances, is
made possible by introduction of stokers and
new combustion methods. A great number of
plants that in former years used anthracite
coal exclusively, now use bituminous coal ex¬
clusively without seriously violating the city’s
smoke ordinance.
In the meanwhile, there is much better feel¬
ing in the anthracite trade as regards prices.
During the past few days prices on prepared
sizes have become much firmer. There is
no great amount of coal loaded in the harbor,
while supplies at the piers are not considered
abnormal. One still hears of concessions be¬
ing made on individual coal, but not so heavy
as was formerly the case. It is said to be
possible to obtain certain grades of chestnut
at thirty-five to forty cents per ton off the
circular, stove at about ten cents off circular, and
egg at thirty cents off circular.
Pea coal is sold at from twenty-five to forty-
fi*e cents off circular, while the best grades
of buckwheat, rice and barley are held very
close to circular. At the lower ports, some
of the inferior grades of buckwheat are sold
at about twenty-five to thirty-five cents off
circular. Rice at about twenty-five cents off.
Good grades of rice are very scarce and full
circular is obtained for these. Barley is also
becoming short. At the lower ports inferior
grades are sold at $1.65 to $1.75.
The Bituminous Situation.
Some improvement is to be noted here and
there in the Atlantic seaboard coal situation.
Contract requirements are becoming heavier.
Spot demand is still disappointing on the
whole, but quite satisfactory to certain favored
shippers.
The export movement continues big, and
the probabilities are that August will show
around a million tons exported if vessels un¬
der charter for over sea business should ar¬
rive at the piers between now and the end
of the month. Bunker requirements for cargo
steamers continues to be good, and there is
the probability here for an enormous increase
when the grain movement starts up in Stptem-
ber. Grain experts estimate very heavy grain
exports, through the Atlantic seaboard ports
beginning in September, and this will mean
very heavy bunker requirements, much larger
than in former years, as now, due to the short¬
age and uncertainty of securing bunkers on the
other side, vessels will take every ton possible
on this side.
Certain plants favored with war orders, are
now said to be using from three to five times
as much coal as they do in normal times.
These instances, unfortunately for the trade,
are few and far between. However, the man¬
ufacturers of the very heavy war materials,
and for the very large contracts, are just
now getting busy. As their activity advances,
the effect on the coal consumption is ex¬
pected to become very pronounced.
During the past week, some of the large
railroad interests have begun to store coal
in anticipation of unfavorable conditions dur¬
ing the winter. Now that car supply and la¬
bor are ample, they argue that to store coal
is an act of wisdom. The Pennsylvania Lines
east will store 1,000,000 tons, it is said. Other
lines are said to be planning storage, and
some few are known to be storing at the
moment. These roads are not buying spot
coal, but are making demands on contracts, for
which shippers are truly thankful at this time.
At the local piers some cheap coals are
obtainable, though they are not in heavy
offering. Some Ligonier coal is said to have
been offered at $2.35. Some lots of West Vir¬
ginia, nearing demurrage at $2.30. Medium
grades of Clearfield can be bought at $2.50
to $2.55. Good Pennsylvania coals bring $2.75
to $2.95. Slack is much stronger, contract re¬
quirements now taking the entire output of
some of the principal producers.
The Vessel Situation.
The coastwise vessel market is unchanged.
Rates are just about firm. Schooners are now
largely engaged in foreign trade, a great
number still finding it profitable to take coal
to South America and other foreign destina¬
tions. Off shore rates are just about easy.
A great shortage of tonnage is predicted as
soon as the grain movement becomes active.
We quote current rates of freight as follows:
From Hampton Roads to Boston, seventy-
five to eighty-five cents; to the Sound, seventy
to eighty cents.
From New York rates to New Haven are
thirty cents. New London, forty cents, and
Providence and New Bedford, forty-five cents;
to Boston, fifty-five to sixty cents; Portsmouth
and Portland, fifty-five to seventy cents; to
Bangor, seventy cents. Harbor rates are from
eighteen to twenty cents.
Prices on gross tons of bituminous coals
are:
F. O. B.
F. 0. B.
Somerset County —
Harbor.
Mines.
Best grades .
. $2.85
$1.30
Medium grades .
. 2.60
1,10
Ordinary .
1.00
Cambria County —
Best Miller vein . .
. 3.00
1.40
Medium grades .
. 2.55
1.15
Cheaper grades .
. . 2.60
1.05
Clearfield County —
Best grade .
1.36
Ordinary grades . .
. 2.50
1.00
Indiana County —
Best grade .
. 2.80
1.25
Medium grade .
. 2.50
.95
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
. 2.40
.75
Best gas, }4-inch lump .
Best grade, run of mine . .
. 2.65
1.10
. 2.65
.90
Gas slack .
.55@ .70
New York Trade Briefs.
Frank Logan of the Frederic A. Potts &
Co., forces, is spending his vacation in the
Pocono Mountains.
Russell K. Pratt of the new reorganized
firm of Pratt & Young, Boston, was in New
York on Monday.
A. B. Luce of Maderia, Hill & Co., No.
143 Liberty street, has returned from a vaca¬
tion spent at his former home in Ohio.
A. B. Harris of George D. Harris & Co.,
No. 1 Broadway, left on Saturday for Lake
George, where he will spend his vacation.
A. S. Cary of the Eastern Coal & Coke Cor¬
poration of Richmond, Va., was in New York
several days this week.
John Jamison, president of the Jamison
Coal & Coke Company of Pittsburgh, who
went to France recently in connection with
some export contracts, has returned.
G. W. Seiler of the Seiler-Blanchard Com¬
pany, No. 1 Broadway, returned on Monday
from his vacation, which was spent in Ros-
coe, N. Y.
Many friends of Charles Hornung, manager
■of the New York office of the Susquehanna
Coal Company, No. 1 Broadway, who has been
ill for several months, will be pleased to learn
that he was able to make a short visit to the
office last week. It is hoped that his improve¬
ment is permanent, and that he will soon be
able to resume his active duties.
J. Howard Aleager, manager of the Grassy
Run Coal Company of Elk Lick, Somerset
county. Pa., was a New York visitor on
Tuesday.
The general offices of the Delaware, Lacka¬
wanna & Western Coal Company, were moved
on Tuesday from No. 90 West street, to the
new Equitable building. No. 120 Broadway,
where ample quarters have been taken on the
eighteenth floor.
Concerning the new anthracite freight rates,
some changes will no doubt have to be made
in rates for rail delivery on Long Island. At
present. Long Island rates are based on rate
to Jersey tidewater transfer ports, plus a float¬
ing charge of twenty-five cents per ton.
Announcement comes from Cambria county
that the Berwind-White Coal Mining Company
is negotiating for the purchase of mining prop¬
erties of the W. H. Hughes Coal Company,
near Bens Creek in that county. These are
known as the Sonman properties. They have
been operated by the Hughes interests for
some years past, and the coal has excellent
reputation.
A dispatch from Clarksburg, W. Va., states
that the resumption of the operations of the
Madeira-Hill-Clark Coal Company’s three min¬
ing plants in the Wilsonburg section, dis¬
closes that the company through its eastern
offices has landed a large contract for ex¬
port, that will keep the plants running con¬
tinually at full capacity for three months and
likely longer.
Frederic Landstreet, general eastern sales
agent of the Punxsutawney Coal Mining Com¬
pany, with headquarters in Philadelphia, was
in New York on Tuesday. Mr. Landstreet has
just received a commission from Governor
Tener of Pennsylvania, appointing him as a
delegate to the Convention of the American
Mining Congress to be held at San Francisco
in September.
Frederic A. Potts of Frederic A. Potts & Co.,
No. 143 Liberty street, is one of the most en¬
thusiastic golfers among the New York coal
trade. Mrs. Potts is also an enthusiatic golfer,
and Mr. Potts thought so little of her ability in
this direction some time ago he made a wager
that she could not make a course under ninety-
five. During the tournament for ladies at the
links of the Spring Lake, N. J. club last week,
Mrs. Potts made a score of ninety-three, and
Mr. F. A. is now $500 poorer.
F. M. Chase, general manager of the Le¬
high Valley Coal Company, announces that
the tunnel planned to be driven in the Hazel-
ton district has not been abandoned. Mr.
Chase was in Hazelton last week, and stated
while no progress of the work had been en¬
tered into since the bids were first received,
that as soon as details were completed, the
contract would be awarded. This tunnel is
planned to open up heretofore untouched veins
of coal in sections that have only been partially
mined. It is quite a big engineering undertak¬
ing, and bids for its construction were received
some weeks ago.
The Guarantee Construction Company of
New York, has recently been awarded a con¬
tract for the unloading equipment to be in¬
stalled in the new coal pocket to be built of
O. H. Perry & Son, Inc., of Jersey City, at
East 19th street. New York. The equipment
will consist of a steel hoisting tower of the
Mead-Morrison type, one-man operation, with
a capacity of 100 tons per hour. Rescreen¬
ing equipment will also be installed to re¬
size the screenings from the discharge chute
of the main pocket. Charles A. Higgins of
No. 30 Church street, is consulting engineer
in charge of the work. The building of a
New York plant was necessitated by the grow¬
ing business of this well known Jersey City
corporation in Manhattan.
Some of the coal men who have made recent
visits along the lines of some of the rail¬
ways from the anthracite fields to tidewater,
comment upon the large quantity of steam
sizes that have been placed in storage at
some of the storage points. They do not
know how to regard this storage, whether as
a result of a lack of demand on the part of
buyers, or the desire of the companies to
prepare for a serious shortage of coal dur¬
ing the coming winter.
No. 8]
THE BLACK DIAMOND
159
Philadelphia Trade.
Low Priced Orders Refused and Higher
Figures Are Demanded on
Current Business.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, August 19.
One of the most sanguine moves that has been
made by the local market was recorded during
the past week. Talk of better prices seems to
have assumed a concrete form and the long
looked for up-turn of price seems to be an ac¬
complished fact. The foregoing refers to the
bituminous market, the anthracite business needs
a few cool nights to give it an impetus.
Contract business that has been hanging fire for
months seems to have awakened to the new order
of thin.gs. Partially responsible for this is the
publicity that has been given to the fact that
the big trunk lines are taking “the bull by the
horns” and are gettin.g ready for an emergency.
The statement that thousands of tons of bitu¬
minous coal are going into storage by the carriers
has led to the natural question, “Why?”
One firm that within the week has received
signed contracts from four consumers has had
the written orders in its desk for from five to six
days and it was learned that all may be turned
down and a new price asked — this at least a
dime on the ton in advance of the price named
a month ago. Another firm has ordered its
Philadelphia representative to take on no large
tonna.ge at current prices and to go sparingly
where contracts will run 1,000 tons or over. Still
another firm selling Miller vein coal has put its
price to its local representatives on a “one day
option plan.” This is enumerated merely to show
how the issue is being carefully watched and
weighed before tying up any great tonnage for
a year.
At the piers the movement in bituminous coal
continues in good volume with considerable cargo
boats filling with export coal. The bunkerage
business is fully up to the standard and some of
the coal houses in this particular line say that
it is ahead of the corresponding month of last
year.
Price changes for the week were principally
on Central Pennsylvania coals, Cambrias and
Clearfields being quoted at $1.50 to $1.60 for best,
$1.25 to $1.35 for mediums, and $1 to $1.20 for
ordinary grades.
Quemahoning offerings also stiffened in price,
with a range of $1.30 to $1.40 for run of mine.
Anthracite Situation.
Egg and stove coal are about the only firm sizes
in the anthracite market at the present time. The
over-plus of chestnut and pea coal that has to be
moved and without a market, apparently, has
caused a strange series of price cutting. Prices
made during the week were as low as April cir¬
cular, tax off. From this figure made by some
of the overstocked independents it ranges up to
July circular, with tax. Pea coal is almost in
as bad a fix though the local consumption has
lifted the stagnation on this size a little bit and
May circular price seems to be about the lowest
that has been offered on the bargain counter.
All of the retail yards are practically dormant.
One well informed man in the trade ventured
the opinion that “more horses are out on pasture
this year than in the past dozen.”
Coal to New England points was shut off for
four or five days from the Port Richmond piers.
The big storm outside the capes and poor demand
was the cause.
Philadelphia Trade Notes.
Senator Horace Tompkins of Portage made a
brief business visit to this city early in the week.
R. M. Peterson of S. M. Martin & Co.’s forces
returned this week from a vacation spent at
Atlantic City.
Carrol Patterson of the Carrol-Cross Mining
Company of Blooniin.gton, Md., was one of the
trade visitors of the week.
T. Frank Sheehan of the Dominion Coal &
Coke Company’s office in Baltimore was among
the trade visitors of the week.
Charles E. Fernberg, manager of sales for the
Thorne Neal Company, has been spending a week
at the Marlborough Blenheim in Atlantic City.
E. S. Lawrence, manager of the local office of
the Pennsylvania Coal and Coke Corporation,
returned to business this week after a pleasant
vacation spent in the Blue Ridge mountains.
H. C. Barr, sales a.gent of the J. S. Wentz
Company, left early in the week for a trip to
the lakes and which will include a visit to the
Detroit offices of his concern before his return.
John H. Jones of the Four States Coal Com¬
pany and the Pittsburgh-Buffalo Coal Company
dropped in to talk over trade matters with Man¬
ager Collins of the local office on Wednesday of
this week.
Robert K. Cassatt of the Keystone Coal & Coke
Company, who has been summering at Newport,
R. L, will finish the summer season at White Sul¬
phur Springs, Va. Mrs. Cassatt’s health was the
cause of the change.
Word has been received from W. H. Bradford,
head of the W. H. Bradford Company, Inc., who
left for a vacation in Vermont and New Hamp¬
shire early this month, that he will lengthen his
stay until the second week in September.
Floyd Chadwick, eastern manager of the sales
department of the Davis Colliery Company, and
Maury Robinson, western salesmana.ger with
headquarters in Columbus, Ohio, are in Elkins,
W. Va., this week in conference with the oper¬
ating heads of that concern.
A. Bart Cornog, who has charge of the gas coal
department of the Cortright Coal Company, left
early in the week to make a personal observa¬
tion of the lake trade. He went to Cleveland
and will visit Detroit, and maybe some of the
upper lake ports before returning.
J. H. Weaver of J. H. Weaver & Co., with his
family and a friend or two, left for the west the
latter part of last week. The conclusion of the
trip will be at the Panama Exposition in San
Francisco. Arrangements were made for stops
in the trans-continental tour, where the party
will do some golfing.
Considerable satisfaction was expressed locally
in the report issued by the United States Geo¬
logical Survey showing the total value of the
coal produced in this state in 1914 to be $188,-
181,399. Said one man, “We thought that every¬
thing had gone to the eternal bow-wows last year,
and we try to make ourselves think the same
this year, but I guess that ou.ght to make some
fellows with the blues change their tune.”
Pursuant to the policy established of “getting
on the ground to get the business,” C. R. Dimm
of the Gano, Moore & Co. forces left last week
for St. Petersburg, Russia, in the interests of the
e.xport business of that concern. Upon conclu¬
sion of his mission there Dimm will .go to both
the eastern and western range of Italy in quest
of coal business. The firm already has offices
established in Rio Janeiro and Buenos Aires.
Straws that show the way the wind blows are
indicated in the report on the idle car movement
issued this week. A decrease of 11,000 cars was
shown between July 1 and August 1, with a
total of 264,243 cars out of commission, as com¬
pared with 196,665 cars last August 1st. The
report comments on the fact that the decrease was
principally in .gondola and coal cars in Pennsyl¬
vania and eastern coal producing states.
The New York Shipbuilding Company of Cam¬
den, which has contracts for six colliers for cost-
wise trade for the Coastwise Transportation Com¬
pany of Boston, announced this week that the
first of these is about ready for launching. This
boat, the “Franklin,” will be placed in the water
on August 21st. It has been stated on pretty
good authority that the original purpose of the
boats — carria.ge between southern coal ports and
the New England receiving points — would be
abandoned and they would go into the Atlantic
ocean trade.
Considerable interest was evinced locally in a
cablegram received from The Ha.gue which de¬
clared that an immediate market for Pennsyl¬
vania coal had been created by the lifting of an
embargo which had been in force for some time.
One cablegram received read as follows : “Great
demand and agitation for coal. The Netherland
Overseas Trust will now issue licenses for Amer¬
ican coal. Better push coal where Overseas
licenses are obtainable. Hereafter importers may
sell only through new distributing committees.
Import licenses .given only to those satisfactorily
accountin.g in detail the ultimate destination of
last lot.”
The local receipts of anthracite for the first
four months of the coal year were 599,309 tons,
as compared with 734,558 for the same period last
year and 647,646 in 1913. The receipts of bitu¬
minous from April 1 to July 31, inclusive, were
1,658,908 tons; last year they were 1,613,697, and
in 191.3, 1,371,811 tons.
New England Trade
Boston, August 19. — (Special Correspondence.)
— The local and nearby retail dealers have ad¬
vanced their prices on anthracite twenty-five cents
per ton to the following basis: Stove, $7.75;
e§'&. $7.75; nut, $8; furnace, $7; pea, $6; Franklin,
$9, and Shamokin, $8. Most of the dealers are
sellin.g Lehigh on the same basis as other kinds.
In previous years Lehigh usually commanded
twenty-five cents per ton more. Bituminous, in
large amounts, retails for $4.40 per ton.
The most discussed subject in local wholesale
anthracite circles is the recent decision handed
down by the Interstate Commerce Commission as
to freight rates from producing to the tidewater
and certain eastern points. Opinions as to the
effect of this decision upon earnings of the vari¬
ous coal producing companies and the future price
of anthracite are somewhat conflicting, but a
majority of the local trade seem to feel that
the railroads in the end will not lose materially
and possibly be better off after the recommenda¬
tions of the Commission have been complied with.
'I'he demand for anthracite during the past
week has held up remarkably well. There has
been some slight falling off in certain sections
of the all-rail demand, but this has been more
than offset by an increase in cargo business.
Most of the cargoes sold diiriag the past week
have been taken by Boston, Lynn, Beverly and
Providence dealers, who evidently have enter¬
tained some fears of a possible shortage later
in the year owing to labor troubles. Most of the
producing companies are operating on greatly re¬
duced tinie and stocks at tidewater shipping points
are comparatively small. If labor troubles should
be experienced premiums undoubtedly would be
received for prompt shipments. A slight im¬
provement is noted in the demand for spot coal
at Mystic Wharf and prices at that point appear
to be much firmer than they were a week ago.
Offerings of spot lots are small. Stove at Mystic
Wharf is generally quoted at $6.10 per ton on cars
and nut at $6.35. The movement of hard coal
to the more distant Maine and provinces points
is better than it was a week ago.
The demand for New River, Pocahontas and
other bituminous coals is no better. Conditions
at ■ Mystic Wharf continue very unsatisfactory.
Very little if any coal is being offered there for
spot delivery, for it will not bring more than
$3.60 per ton on the cars. Practically no Georges
Creek has been sold there for a month and its
price of $3.90 to $4 per ton is purely nominal.
Stocks of southern coals, standing and running,
at Hampton Roads ports, are still far in excess
of the demand, and more or less price cutting is
reported as being done with a view of stimulating
business. The off-shore business holds up fairly
well, but comparatively few firms are getting
any of it. The bunkering business is light. Prac¬
tically the only Pennsylvania bituminous coming
into New England is all-rail, the sharp competi¬
tion witli other kinds eliminated cargo shipments
now that the largest consumers here have con¬
tracted for all they will need for some months.
The local trade expresses considerable amuse¬
ment over articles that have appeared recently
in the Boston News Bureau, which tell of the
wonderful earnings to be made by soft coal pro¬
ducers in the fall and winter owing to the Euro¬
pean war. The belief here is that the news
reports are circulated for the sole purpose of
inflating the market value of certain stocks. That
profits this fall and winter will be larger than they
were a year a,go is generally admitted, but prices
to be realized as intimated by the financial news¬
paper seem absolutely unreliable.
The marine freight rate market is practically
the same as reported last week. Vessel and
barge owners are asking seventy-five to eighty
cents per ton for bituminous space from Hampton
Roads to Boston, and seven to ten cents a ton
more from Baltimore to Boston. Fifty and fifty-
five cents a ton is the general asking rate for
anthracite space from New York to Boston. The
return cargo business is .good, according to local
dealers.
Boston Trade Notes.
Pratt and Young of the firm of Pratt, Staples,
Bell & Young, Inc., have sent out announcements
that within a short time the firm’s name will be
changed to Pratt & Young.
The Boston Perfect Fuel Company, with a
$50, GOO capital has been granted a Mdine char¬
ter. The company proposes to manufacture, buy
and sell fuel products, and the incorporators are :
William K. Neil and Albert E. Meal of Portland,
and Henry D. S. Woodbury of South Portland.
160
THE BLACK DIAMOND
[August 21
Buffalo Trade.
Baltimore Trade.
Buffalo, N. Y., August 19. — (Special Corre¬
spondence.) — Shipments of anthracite by lake for
the past week were 119,848 tons, which is a fall¬
ing off of about 10 percent from the preceding
week and is below the average for this season of
the year. The shipments were distributed as
follows: Duluth-Superior, 51,000 tons; Chicago,
26,100; Fort William, 23,448; Waukegan, 13,800;
Port Arthur, 5,500. The shipments at present are
running a good deal behind those of the same
period last year and unless the situation changes
there will be about the same falling off in total
for August as was recorded during July.
The demand for anthracite from dealers shows
very little life and most companies are calling
trade stagnant. Tlie decision as to anthracite
freight rates has doubtless deterred many buyers
from taking coal, as consumers are generally of
the opinion that coal is to be clipper because of
the lower rail charges for carrying it. Many in
this section are likely to be mistaken. The
Rochester rate has been changed, but that of
Buffalo has not. Many think that it will be only
a matter of time before a reduction will be made
in the anthracite rate to Buffalo.
The bituminous trade has not shown much
improvement lately, though it is better than a
couple of months ago. There is some disappoint¬
ment that business does not pick up more rapidly,
Init the feeling is optimistic as to the future for
all that. A better tone is .shown in contract
prices, though spot coal does not show any
greater strength. The strengthening of contract
prices is a good indication of the fact that every¬
body is anticipating better times to come along
this fall and winter. Nobody is disposed to make
long-term contracts unless prices a little higher
than those wanted for immediate delivery are
cpioted. There is not much spot coal on track
at present and shippers are generally disposed
to wait until they have regular orders for fuel
before shipping in on consignment.
The steel industry is now putting up a much
better front than some weeks ago, the larger
plants running full time or close to it. It may
take a little time to impart activity to other linp
of business, but coal men feel that this fall will
see renewed strength to many lines which are
still dull. The lake movement of coal is light,
but that of iron ore is heavy.
Buffalo Trade Briefs.
Herbert Milnes, of the Milnes Coal Company,
Toronto, was a Canadian coal visitor here last
week.
L). L. Tuttle, sales agent of the Philadelphia &
Reading Coal & Iron Company, has returned
from a week-end trip to Genesee, Pa.
L. A. Burnett, president of the Clifton Coal
Company, and George D. Rowland of the Rich¬
land Coal Company, Wheeling, were here last
week.
W. T. Roberts, western sales agent of Williams
& Peters, has gone to Long Beach, on the north
shore of Long Island, where he will spend some
weeks.
J. A. Beam, of the Bader Coal Company, came
up from the Allegheny valley to visit old asso¬
ciates a few days ago. The office of the com¬
pany was also visited by F. L. White from the
New York office, who was recently in charge of
the Buffalo office.
The Lehigh Valley Railroad Company is plan¬
ning to build big repair shops in this city at a
cost of more than $250,000. The company owns
valuable property in this city which is available
for the purpose and it proposes to engage in mak¬
ing extensive repairs to locomotives and cars
here, as well as at Sayre, Pa., where the present
shops are located. It is expected that 500 men
will be given employment in this city
The sale of the Buffalo & Susquehanna Rail¬
way is scheduled for August 23 at the Buffalo
city hall. The property is to be disposed of in
one piece and bidders must put up $100,000 in
money or certified check or a deposit of $300,000
par value of the first mortgage bonds of the
company. The sale includes franchise, equip¬
ment, real estate, shares of stock of the road
and buildings along the line. The line is 84.3
miles in length. Sale is made bv virtue of a
judgment of foreclosure and under the auspices
of George D. Crofts as referee. It was hoped
until recently that a buyer would be found who
would electrify the road, as there are a number
of shipping stations dependent upon it for rail
facilities.
Baltimore, August 19. — (Special Correspond¬
ence.) — A period of undoubted prosperity is
dawning for business of all kinds here, and for
the coal trade in particular. War business alone
that is pouring into Baltimore is of such a nature
that the industrial wheels must hum here, and
many thousands of tons of coal be contracted for.
Most of this business has been of sudden growth
and is entirely uncared for in existing coal con¬
tracts, so that a line of big inquiry is now ex¬
pected to develop rapidly.
During the past week the biggest thing from
an industrial viewpoint was the purchase by the
Bethlehem Steel Company of the big Detrick &
Harvey Machine Company here. The purchase
price was $225,000, and it is understood that not
only will the plant in the city be utilized but a big
factory for munitions manufacture will go up on
the grounds owned by the company just outside
the city at Bayview. The American Distributing
Company has placed contracts for a $1,000,000
plant at Curtis Bay to manufacture alcohol for
high explosive use. With the Bartlett-Hayward
Company plant working to complete buildings to
handle a $12,000,000 order, the Poole Engineeriag
Company, P. Kennedy Foundry Company, Na¬
tional Enameling & Stamping Company, Davison
Chemical Company, Mt. Vernon Cotton Duck
Corporation and a dozen other big plants work¬
ing night and day on war orders of various kinds,
it would seem that nothing can stop a .great in¬
dustrial boom here.
Already prices are stiffening gradually at the
mining centers. There is now no longer talk of
taking orders for coal at any price to keep up
organization. Shippers and consumers now have
to do tile bargaining with the mines, and not the
opera'-ors with the takers of fuel. During the
past week, while there was no big general jump
in prices, both slack and coke moved upward. It
is freely predicted that from henceforth there
will be a general upward movement.
The increasing activity of the steel mills is un¬
doubtedly telling on the coke situation. Best
Connellsville seventy-two-hour foundry, six
months, was quoted at $2.35 to $2.40. Forty-
eight-hour was bringing $1.65 to $1.75. West
Virginia seventy-two-hour was worth $2.10 to
$2.25, with forty-eight-hour at $1.60 to $1.65.
F. 0. B.
F. O. B.
Fairmont —
Mines.
Baltimore.
Tin ee quarter .
$2.23@2.28
Run 01 mine .
. 75@ .80
2.18@2.23
Slack .
1.98@2.03
Somerset —
Best .
2.43@2.48
Good .
. 1.10@1.15
2.28@2.3S
W. M. R. R.—
Freeport .
1.93@1.98
B. & O.—
Freeport .
. 75@ .80
1.93@1.9S
P. R. R.—
Best South Fork .
. 1.30@1.35
2.48@2.53
Miller Vein .
. 1.10@1.15
2.78@2.83
Ordirtary .
. 85@ .95
2.03@2.13
Birmingham Trade.
Birmingham, Ala., August 19. — (Special Cor¬
respondence.) — The most startling feature which
has come to light to affect the coal trade was
the announcement of the Interstate Commerce
Commission, which granted many privileges the
Alabama coal operators asked. Concessions were
made which, while asked for, were not antici¬
pated. The decision is far-reaching and will have
a marked effect upon the trade in certain terri¬
tory.
The general tone of the market is much more
optimistic than has been the case for several
months. This is true with all grades of coal, and,
while the domestic coal trade has not yet shown
any marked activity, it is expected that a heavier
movement will soon begin. In steam coal, the
trade is good and bunker business has shown
some improvement.
In coking coal, the activity is very marked,
and further demand for this kind of coal is soon
to be increased by additional furnaces bein.g put in
blast.
The blacksmith coal trade is well in hand and
good trade is still being carried on.
Coal prices have stiffened considerably in the
last few days. One of the large producing com¬
panies, pursuant ' to large demand for its own
need, has withdrawn from the market in both
steam and domestic coal.
The following prices are for balance of August,
.ib j ect to chan,ge for September :
F. O. B. F. O. B.
Tib 5 County Domestic Coal — Mines Birmingham
anaba fancy lump . $2.50 $2.80
anaba No, 2 lump . 2.25 2.55
Jefferson County —
ancy steam Pratt . 1.75 2.00
Run of mine Pratt . $1.20@1.25 $1.45@1.50
Black Creek —
Fancy steam lump . 1,'
Washed nut . 1.'
Washed steam . 1.35@l.i
Mine run . 1.35@1.-
Jefferson seam steam coal —
Mine run . 1.15@1.1
Walker County domestic.... l.(
Carbon Hill lump —
Horse Creek mine run . 1.00@1.20 Freight rate .40
Shelby County —
Montevallo domestic prices
ranging . 2.75@3.'
Blacksmith coal, washed and
$2.00 to $2.25 at mines, with
various points.
.75
.75
.60
.40
.25
.60
i.OO
2.05
2.05
Freight rate .30
Freight rate .30
Freight rate .30
2.00
screened, per ton,
different rates to
Will Barge Coal.
Following receipt of formal permission from
the United States war department for the use
of the steel bridge over the Warrior river at
Maxine, official announcement is made at the
executive offices of the Tennessee Coal, Iron &
Railroad Company that the company would barge
coal from mines in the Edgewater and Bayview
divisions down the Warrior river to New Or¬
leans.'
Negotiations have been under way between the
Tennessee Company, the Southern and the Ala¬
bama and New Orleans Transportation Company
for several weeks in this respect. It was desired,
however, to load the coal onto the barges from
a steel bridge on the Maxine branch of the
Ensley Southern Railway near Maxine, and to do
this the consent of the war department had to be
secured.
The necessary arraasements will be completed
by September 1st and the Tennessee Company
will barge down the river about 10,000 tons of
coal a month. The Alabama & New Orleans
Transportation Company already has six self-
propelled steel barges and has two more under
construction. Each barge will haul about 800
tons of coal a trip.
Work is now to be started at once by the Ten¬
nessee Company on the construction of the chute
at the Salters Bluff bridge and the first barge is
expected to be loaded about September 1st.
Coal is now being barged down the Warrior
by the Pratt Consolidated Coal Company in its
own bar.ges to Mobile and, at Cordova, on the
’Frisco Railroad, a switch and trestle is being
built for the unloading of coal into the barges
by the De Bardeleben Coal & Coke Company.
While there is no connection between the move¬
ment to barge coal down the Warrior and the
decision of the Interstate Commerce Commission,
which increases freight rates by rail on coal to
New Orleans from Birmingham by fifteen cents
a ton, the decision is generally accepted among
coal men as meaning that the time will be has¬
tened when the Warrior is to become quite a
factor in the coal market to southern ports.
Coal operators of the Birmingham district
were somewhat surprised Friday morning when
they heard the news of the decision of the Inter¬
state Commerce Commission, which allows rail¬
roads to increase the freight rate on coal into
New Orleans and other Mississippi river points.
Meridian, Vicksburg, and a few other places be¬
ing excepted. The result of this decision will
brin.g about a large volume of business down the
river.
Heretofore the Munson Line’s steamers for
Uruguay and Argentine Republic have coaled at
Pensacola, and through the efforts of the repre¬
sentative of the Pratt Company they have been
induced to bunker these steamers in Mobile.
Secures More Tonnage.
The Punxsutawney Coal Mining Company
of which Frederic Landstreet is general east¬
ern sales agent, with offices in the Land Title
building, Philadelphia, announce to the trade
a joint sales agency arrangement with the
Punxsutawney Coal Mining Company, Anita
Coal Company, and the William Run Coal
Company, as of August 1st. These mines are
controlled by Mr. Barry Yates of Buffalo, and
Dr. W. S. Blaisdell of Punxsutawney.
The active management of all three mines
will be in charge of Dr. Blaisdell at Punxsutaw¬
ney, Pa., and the sale of these coals will be
pushed very largely through the Philadelphia
office, as the coal naturally finds a ready sale
in this territory. The tonnage represented
by this arrangement amounts to, roughly,
350,000 tons per year of strictly high grade
Punxsutawney coal. The Frances coal origi¬
nates on the Buffalo, Rochester & Pittsburgh
Railroad at Frances Mine, Pa., while Anita and
Williams Run coal originate on the Penn¬
sylvania Railroad at Anita and Horatio re¬
spectively.
The Black Diamond
Vr»l RR lVr» Q CHICAGO
V OI. OO. llO. » COLUMBUS
AUGUST 28. 1915
NEW YORK c'Y ork D 'V
PITTSBURGH 9tJ«UU rer Tear
Effect of Rate
Changes on the
Retail Trade.
Within the next six weeks — the sooner the bet¬
ter — the retail coal dealer must decide and act
upon a big and new policy. This need arises
because coal rates have been changed and mar¬
kets disturbed. He will feel the effect of this
policy for six or seven months or until the end
of the coal year. If his decision is right, he is
going to make money. If his decision is wrong,
he is going to lose money. Still he must decide
one way or the other and upon what he does
will depend the profitableness or otherwise of his
business for this coal year.
Incidentally, every retailer must make up his
own mind. No one can do it for him. That is,
we can state the situation generally, but we can¬
not give any advice. Likewise the operator can
state his position broadly, he cannot give any
advice. That is, the situation is new to us and
to them. None of us knows what is going to
happen. Therefore, the retailef must think for
himself and decide^ for himself.
The Interstate Commerce Commission has al¬
ready decided four big rate cases. Soon it may
have to decide a fifth. By these decisions rates
have been ordered changed radically in three
big sections. A pending case may end in a
decision to change rates in the fourth section.
The changes ordered are radical enough to
disturb seriously the market zone of many coals.
They disturb the commercial prospects of many
coal mining companies. As a consequence, the
retail dealer’s source of supply, hereafter, may
not be the same as it has been heretofore; the
freight rate on coal moving to his point may
have changed the relative positions of competing
coals to the point that the price of one coal will
make it his natural leader, the quality being con¬
sidered.
The thing for the retail dealer to do, there¬
fore, is to study the new rates; to study the
quality of the coal moving on those rates; to
study the relative prices of competing grades
at his point and to study the demands of his
consumers. In this way only may he know what
coal to buy.
Prompt Action Necessary.
This decision by the dealer should be made
in the next few weeks because the new rates
go into effect on September 30th and October 1st.
He may want to buy some coals before that time.
He may not want to buy other coals until after
that time, still he must decide now what his
policy will be to avoid buying certain coals at an
inopportune time. He must know what coal to
put in storage now and what coal the buying
of which he should put off. But, before he
can do either, he must have a pretty clear idea
of what the future is going to develop.
While we do not pretend to advise, we can
recite the facts from the retailers’ point of
view. That is the purpose of this article.
Anthracite Rate Reduction.
The Interstate Commerce Commission, in its
decision of two weeks ago, revised the anthracite
rates downward in the territory east of Buffalo
and Pittsburgh. There is a minimum reduc¬
tion of line rates to keynote points in
consuming centers of fifteen cents a ton.
The maximum reduction is eighty some odd
cents a ton. The average of all reductions
ranges somewhere between fifteen and twen¬
ty-five cents a ton. These rate reductions are
to keynote points in the big coal distributing
zones. The detail of aligning rates to inter¬
mediate points to correspond with the basing
rates named, was left to the railroads. Whether
the reduction is fifteen cents a ton or eighty cents
a ton, there is a corresponding reduction to every
point between the mines and that destination.
As to what effect this rate reduction will have
on prices, we have two points in view. The Inter¬
state Commerce Commission clearly indicated in
its report that it was not striving to reduce the
price of anthracite coal at de.stination. It seems
to have accepted as proper the anthracite prac-
The Future Is Uncertain But the Retailer
Must Guess Soon Whether Prices Are
Going Up or Down or Remain Stationary
— The Result.
tice to name a delivered price. The Commission
seems to have expected that this practice would
continue. Therefore it seems to have expected
that this price would not be changed. The deci¬
sion was accordingly addressed more to a di¬
vision of that price between the railroad and the
operator than it was to a reduction in it to the
retailer or user. That is, it seemed to desire
that the operators should get in future a larger
percentage and the railroads a smaller percentage
of the delivered price. It wanted to increase
the percentage received by the operators that the
“independent” might as readily make money as
have “the companies.”
If that view should prevail, the delivered price
would remain unchanged.
Competition a Factor.
However, there is another possibility. The
“independents” and “the companies” compete vig¬
orously in all of the eastern markets. The com¬
mission can give these operators a chance to
make a bigger profit but it cannot say that they
must. Therefore each coal company, whether
“independent” or railroad-owned, is at liberty to
share the rate reduction with the retail dealer
or even to give him the whole of it. That is,
the operator can accept, if he choose, the same
mine price that he has been getting heretofore
and can reduce the delivered price. That is to
say, a new commercial force has been introduced
into the anthracite coal trade. It is quite likely
to change things around.
Before the new rates go into effect on October
1st, the retailer must decide what, in his opinion,
anthracite prices are going to be. If he decides
that competition will force the price of anthracite
coal down, he must decide to buy cautiously for
awhile. If he decides that the delivered price
is going to remain the same, he will decide to
get his coal in now to avoid the rush of orders
which others will place later. We cannot say
what is going to happen. The operators cannot.
This is so because we do not know and the oper¬
ators do not know. It must be a guess at best
and since the retailer is the one most concerned,
he must do the guessing.
Influence on Grades.
This is a vital matter for this region. In cer¬
tain sections of the east, anthracite and certain
grades of hituminous coal are highly competitive.
Bituminous coal, to overcome the prestige of an¬
thracite, has been sold at a ridiculously low fig¬
ure. The price has in fact about reached an ir¬
reducible minimum. As the result of a long
campaign, anthracite and bituminous coal have
found about their competitive level under the old
prices. The growth of bituminous has depended
on the installation of new coal burning equip¬
ment. Naturally a reduction of fifteen or twenty-
five cents or more in the price of anthracite coal
would be likely to throw the market out of joint
in this particular. It might easily result in a
rebirth of anthracite demand in the east and
therefore in a postponement of the final suprem¬
acy of bituminous in that territory. The deter¬
mining question is: “Do the anthracite operators
as a whole feel disposed to gain tonnage at the
expense of price and at the expense of competing
coals?” So, the decision of the retailer on this
point is sure to prove vital. It must influence
his whole program of purchases.
Western Anthracite Rates.
Anthracite coal moving to the west of Buffalo
takes two routes :
One is from the mines to Buffalo and the lake
route to far western destinations.
The other is by all rail from the mine to Ohio,
Indiana, Michigan, and Illinois and through Chi¬
cago to a big territory to the west and south-
we.st.
While these two routes are distinct, they are
competitive. The transportation charges by lake
being the lower, the lake route dominates the
western coal trade.
The decision of the Interstate Commerce Com¬
mission was that the rates from the mines to
Buffalo are not to he disturbed. That is the
keynote of the whole lake situation. The lake
carrying charges are not fixed by the Commission
or by the railroads; neither are the dockage
charges at Buffalo nor at the upper lake ports.
Therefore, the rate to the upper lake docks has
not been disturbed by this decision. As will be
brought out in another place, the rates on an¬
thracite coal from the upper lake docks to in¬
terior points have not been disturbed. Since
the rates are the same as heretofore, there is
every reason to expect that, by this route, the
delivered price will be the same.
On the all rail trade to the west the Interstate
Commerce Commission leaves undisturbed the
rates from the mines to all points in Ohio, Mich¬
igan and Indiana. Therefore the delivered price
in all of that territory will be the same. How¬
ever, the Commission grants the plea of the rail¬
roads that there shall be an increase of twenty-
five cents a ton in the rates to Chicago and there¬
fore in the rates to all points reached through
Chicago hy all rail.
A Conflict of Rates.
Chicago is a lake port and a rail center, hence,
two transportation routes are open to its ship¬
pers. By the water route, the rate is unchanged.
By the rail route, the rate is twenty-five cents a
ton higher. Which of the two rates is going
to govern? Can the coal agencies expect to do
business at two prices, one of which is twenty-five
cents a ton higher than the other? Will they
move up the lake price to meet the all rail price?
Or will they cut the all rail price down to meet
the lake price? Those are the leading questions.
West of Chicago we have this situation? Part
of the territory is served by the dock companies.
The rate there being the same, they can be ex¬
pected to charge the same delivered price as here¬
tofore. In another section, however, the dealers
get their coal all rail and the rates have been
advanced twenty-five cents a ton.
Are we going to see the western territory split
into two zones on anthracite and governed by
two different rates? That is, will a line be drawn
straight west from Chicago, for example, and
will be coal be sold in territory north of that
line at twenty-five cents a ton less than in the
territory south of that line?
A Point in Competition.
Before answering that question a different com¬
mercial factor must be considered. Anthracite
coal in this territory is in competition strongly
not alone with various grades of bituminous and
semi-bituminous coal, but with an ever-increasing
flood of coke. If coke were not a factor, an¬
thracite might be able to meet the competition
of bituminous and semi-bituminous coal even
while adding twenty-five cents a ton to the price.
This is so because the only coal which approaches
it in quality moves at a relatively high rate.
But, coke is produced now at points near the
market and the rate is low. .\lso, since the
cities must have gas, and since to get gas, bitumi¬
nous coal must be treated, the resultant produc¬
tion of coke is large. It increases proportion¬
ately to the growth of cities. This coke naturally
must be sold.
The growth of the steel business is not rapid
enough to absorb in furnaces and foundries all
of the increasing production of coke. That com¬
pels the coke operator to fall back, for a market,
upon the retail trade. Thus anthracite coal is
162
THE BLACK DIAMOND
[August 28
finding a stronger and stronger competitor each
year.
The relative merits of the two fuels is not a
governing factor. Instead, the necessity of the
ovens to find a market for its coke product is
ruling.
On this acco.unt, we cannot tell the dealer what
the price of anthracite will be tomorrow. Can¬
didly, we do not believe the operators can. The
retailer will have to weigh all the evidence and
make up his own mind. The only thing we can
do is to give him the facts and the possibilities
as is here done.
Bituminous Rate Increases.
Another decision recently handed down by the
Interstate Commerce Commission gives the rail¬
roads the right to increase rates to all points
west of a line drawn north and south through
Chicago and east of the Rocky Mountains. This
allowed increase can be checked in on September
30th.
A great many things have to be taken into con¬
sideration by the retailer in_ deciding what is to
be his attitude towards various offerings of bi¬
tuminous coal.
The first one is : The railroads have the right
to check in this advance but they do not have to.
Some of them are disposed to do so. Others are
on the fence and may decide on no rate advances
at all. There is thus introduced an element of
uncertainty. What will happen?
Second, the railroads proposed and the Inter¬
state Commerce Commission allowed a rate in¬
crease of ten cents a ton on coal from western
mines to the Twin Cities. All intermediate
points, of course, carry a corresponding increase.
However, the railways moving coal from the
docks to the same 4estination did not propose
and do not get any increase in rates. Therefore
there is an unequal advance and it amounts to a
differential against the coal from Illinois and
Indiana.
The north line of Iowa has been considered the
north line of the natural selling zone of Indiana
and Illinois coal. Beyond that, for a certain dis¬
tance, it has been a tug of war as to which coal
should rule the market — the eastern coal or the
western coal. Still further north is another line
beyond which Illinois and Indiana coal could not
go and hence beyond which dock coal has pre¬
dominated.
The differential against Illinois coal changes
this map. That is, the north line of the natural
market may be further south than the north
boundary of Iowa. The zone where there has
been a tug of war may be smaller. The territory
in which dock coal predominates may extend fur¬
ther south.
There are two possible actions for the retailer
to take. One is to buy western coal now before
the advance takes effect and therefore to get his
winter supply of coal moved at a lower freight
rate. This gives six weeks practically in which
the retailer can stock up.
The other is for him to wait until the freight
rate has gone into effect and to expect, as a result
of the narrowing of the market zone of western
coal, a reduction in the mine price.
As to what to do, we cannot advise. Candidly
the operators cannot because neither we nor they
know what is going to happen.
Another consideration is that the Interstate
Commerce Commission also granted the Birming¬
ham operators some increased differentials against
Illinois coal. To a greater extent than in the
northern case, the market zone of the Illinois
operators has been abridged. While the territory
effected is larger, the volume of tonnage moved
into that zone has not been quite so large. The
effect in the south has been to restrict the pos¬
sible market rather than to take away business
already enjoyed. Will this act to reduce prices
because the same volume of tonnage must be sold
in a smaller territory?
The Ohio Rate Case.
There is a rate matter in Ohio which may give
the Ohio retailers, and incidentally those in the
west and northwest, quite a good deal to think
about. No decision has been made so far, but it
must be made soon.
The mine workers succeeded, both by a strike
and preferential legislation, in getting an increase
in the Ohio mining rate. This threw the oper¬
ators out of line in a big selling territory. Nat¬
urally this curtailed the work which the miners
had to do.
To offset the loss of work, the miners’ union
attacked the whole rate fabric in Ohio. They
took into consideration that Ohio mines, with
few exceptions, have no market in Ohio’s two
big cities — Cleveland and Cincinnati. Also, Ohio
operators have lost much lake business because
West Virginia mines are, they say, more favor¬
ably situated as to mining and transportation
rates.
To win back their work, the union attacked
the rates. They have asked an increase in differ¬
ential in favor of Ohio mines of about twenty-
five cents a ton. If these claims are allowed, it
will mean new markets for Ohio coal in Ohio,
and cheaper Ohio coal in the northwestern terri¬
tory.
Since Ohio and Pennsylvania are considered as
part of the same coal producing area, what is
true of Ohio will be true/ of Pittsburgh coal.
If we extend this rate readjustment, as it must
be extended, to the market in the northwest, it
can be seen that there is likely a very largely in¬
creased differential against western coal in the
northwestern markets.
In this rather elaborate presentation of the
case, we have merely suggested an outline of the
things which the retail coal dealer must take
into consideration when buying his winter supply
of fuel. He must rnake up his mind quickly
as to what he is going to do. If he guesses
right, he can make the winter’s business very
profitable. If he guesses wrong, he is liable to
have a loss for his pains. But, he must guess.
Therefore he should take the time to study the
situation so that he may make that guess as intel¬
ligent as is possible, under the circumstances.
A Point Or Two About the Car Situation.
A number of railroad men and quite a number
of coal men have been and are predicting that we
are going to have a pretty serious car situation
this fall. They are predicting that the railroads
are not going to be able to move the traffic offered
them and that we are going to have, in reality,
a shortage of coal or just barely enough coal to
keep the country going all through the winter.
This talk of the car shortage is one of our old
friends. It comes around about every season.
Sometimes there is a good deal of truth in it ;
at other times it is — well some one starts it who
wants to sell coal early and at low prices instead
of selling it late and at high prices. The imme¬
diate question is:
“What is the situation this year?” Are cars
likely to be short, or is this a bit of grand army
talk?”
A few facts may help to clarify that situation.
Railroads, according to their own statements,
have for the last three or four years been about
as poor as Job’s turkey, which, it will be remem¬
bered, was so lean that it had to lean against the
fence to gobble. The railroads are now saying
that they are and have been so poor that they
cannot even ask for an advance in rates unless
somebody gives them the money for the postage
to send the letter to the Interstate Commerce
Commission. Of course, we all pity the railroads
found in that position, but they have nothing on
the coal trade.
However, their poverty has had some influence
upon their attitude toward track facilities, cars,
engines, and the like. Whether their poverty is
in part or in whole a stall, the real truth is that
they have not been spending money to put down
new tracks, to repair their engines or to keep
their cars in tune.
If depreciation on a car is ten per cent a
year and if we have had no material charges to
repairs in three years, it means that the rolling
stock of the railroads of the United States is, at
best, about seventy or eighty per cent of nor¬
mal. This means that the railroads can only
handle at most eighty per cent of the business
that they could when the equipment was in good
condition.
That would be all right if the railroads only
had eighty per cent of the traffic to handle. But,
unfortunately, coal cars are devoted almost ex¬
clusively to the coal trade. Instead, therefore,
of only having eighty per cent of the normal ton¬
nage of coal to move, the railroads are going to
have at least 100 per cent of the normal move¬
ment of coal this fall. This means that the rail¬
roads are going to be twenty per cent behind.
However, the fact must not be left out of con¬
sideration that no storage coal has been moved
this summer for domestic use, therefore the rail¬
roads must move the storage coal at the same
time that they move the coal for current con¬
sumption. Therefore in September, October and
November the railroads are going to have to
have about 125 per cent of the normal traffic in
coal. They are going to try to do this with
equipment which has only eighty per cent of its
normal carrying capacity. This simply means
that the railroads are going to be away behind
on the movement of coal and that there is really
some truth in the statement of the railroad of¬
ficials that a car shortage is evident.
In view of this situation, one other fact must
not be overlooked. The export movement of
coal is 100 per cent above normal. Any month
now, it may be 2W per cent above normal. The
expected export movement will take at least 50,-
000 cars constantly employed. The railways have
no time to construct that many new cars,, so
these 50,000 must be withdrawn from the regular
channels of trade. This simply serves to lessen
the carrying capacity of railways from the mine
to interior points and to the same extent sug¬
gests a car shortage which now seems so immi¬
nent.
Under the circumstances it is not wise or safe
to delay any longer than is absolutely necessary
the purchase of coal for storage.
Importance of Coal Receiving Facilities.
Few retailers appreciate, but nevertheless it is
true, that the coal consumers’ facilities for receiv¬
ing coal are of as much importance to him as is
the equipment of his yard.
That is to say, it solves only half of the prob¬
lem for the retailer to equip himself to unload
quickly from the cars and to load it quickly into
his wagons and then to move it quickly through
the streets. All of this effort for speed may be
nullified in part by poor facilities for the receipt
of coal at destination.
So long as the householder is not equipped to
receive coal quickly and easily, the retailer is but¬
ting his head against a stone wall when he tries
to save time. He is going to elaborate expense
to speed up deliveries onlv to have his best efforts
vetoed by an indifferent householder.
Poor facilities for receiving coal do not take
away all the benefits of the efforts toward quicker
delivery, but they do take away about half of the
result which the retailer is striving to get.
The situation is rather difficult for the retailer
to handle but not impossible. No householder
wantonly makes coal delivery difficult or slow.
He just doesn’t think about it. In fact few, if
any, householders know that they are costing the
retailers money by having no place in which coal
can be delivered quickly. It is a point which, per¬
haps, has never been called to their attention.
New house, new office buildings and the like
are going up almost every day. Architects are
busy all the while in designing new places where
coal is going to be burned and must be received.
The retail dealer, by working with the house¬
holder and by working with the architects, can in
a very short space of time make considerable
headway in simplifying this costly proposition.
When they realize that to provide no easy place
to get in coal may mean as much as one-half or
one-third the whole delivery cost on coal, the
householders and the architects are going to pay
some attention to providing beter places. Our
advice to the retailers, therefore, is to get busy
in an effort to improve the facilities for receiving
coal. Perhaps a little local association work along
this line will do a lot of good.
The average retailer, this year, has had first
rate example of what current facilities mean.
The driveways into the yards have been too light
or too soft to accommodate his heavy equipment.
Therefore he could not make delivery at all.
This has so slowed down the movement of coal
that it is going to cost a whole lot more of money
later because of congested traffic.
The ocean tug Lackawanna, owned by the Del¬
aware, Lackawanna & Western Railroad, and
chartered to the J. B. Kin.g Company of New
York, was recently sunk in Vineyard Sound,
about two miles west of Handkerchief Lightship,
by being rammed by a barge. Two lives were
lost.
No. 9]
THE BLACK DIAMOND
163
How to Strengthen Local Coal Trade Conditions.*
When we refer to “local conditions,” we mean
those that exist right at home, and I do not be¬
lieve they vary much throughout the United
States. What pertains to one place will come
pretty near fitting in any other point where there
is any coal business.
As a salesman in a part of the country where
coal is at present looked upon as a nuisance and
a burden, I am compelled, under present condi¬
tions, to almost continually foster a grouch. The
coal salesman, under present conditions, in order
to bring in the business must first hypnotize the
customer to make the sale, and a little later on,
overpower him to collect the money for it. What
an improved condition it would be to outline and
carry out a policy by which it would be possible
to create and maintain a state of affairs that
would make our customer a desirous buyer whose
requirements we would delight in satisfying!
You will agree with me when I tell you that I
know numbers of wholesale firms who are con¬
ducting their business just as if they expected to
suspend operations at the end of the present
month. Of course, they don’t quit, but they cer¬
tainly act like it and, at that, they manage to
finish the year. And I can describe how an out¬
lined policy would help them by recounting to
you an item I once read in a Chicago paper re¬
ferring to a citizen of this city, who lived his
whole life here and died at ninety-three years,
and I thought at the time, “What a remarkable
age he would have reached had he lived any¬
place else !”
Consigned Coal.
One of the present-day evils is consigned coal.
This, I consider one of the worst handicaps that
is placed upon the satisfactory disposition of coal.
Its tendency is to place the selling department
entirely at the mercy of the trade. The slightest
change in the weather dumps a lot of coal on
the market, and the influence of demurrage starts
a demoralization that only ends in the other ex¬
treme of no coal and a weak market.
This glut has the tendency to place the coal
into a bad account and you can’t force the col¬
lection for the reason that you have placed your¬
self under obligation to the customer when you
plead with him to take coal he didn’t want, and
which he had to unload at an otherwise unneces¬
sary expense.
How much safer for the sales department that
the trade be taught to estimate its wants for the
month at least, and order with the explicit under¬
standing that it is to take approximately the
amount agreed upon. This cannot to any extent
injure the customer, because if he is a user of the
coal, he should be prepared to store a reasonable
amount of it ; and if a dealer, he should educate
his trade along the same lines. There has not
been in the last decade one case where a reverse
order of things benefited the jobber one dollar’s
worth. It is unfair for the trade to ask jobbers
to keep a string of loaded cars on hand and on
demurrage just in order to satisfy its whims or
in order to cater to every change in the weather.
Adjusting Claims.
_ A besetting evil of the present time is the prac¬
tice of adjusting claims made by customers for
shortage and damage in coal before the status of
same is established with the common carrier. I
am safe in the statement that unsatisfied claims
to the extent of enough money to run an ordinary
business will be found upon the books of every
jobber within the sound of my voice. One of the
greatest improvements that can be made upon
present conditions would be to insist that cus¬
tomers fight their own battles with the railroad
companies.
Allow me to refer to the custom that prevails
in paying freight and adding same to the account.
As soon as a car of coal arrives, the jobber is
asked to pay the freight. It used to be the last
thing he did — but you bet that has all been
changed in our town, and it is now the first thing
he does. And, not only that, but he must guaran¬
tee the car service and the switching ; then some¬
times the freight collection bureau collects from
the customer, and one of them has a devil of a
time getting its money back.
Railroad companies, the Interstate Commerce
Commission, the banks and the legal department
have decided that an expense bill is just a sight
draft and means cash ; and when you pay a
freight bill for a customer, you simply loan him
*Part of an address before the National Coal Conven¬
tion in Chicago.
tOf the Midland Coal Company of Kansas City, Mo.
By H. C. Mckinney.f
It Is First Necessary to Know What Is
Wrong Both in Wholesale and Retail
Methods and to Get Each to Correct His
Own Practice.
money without any hope of interest. Then if
you don’t send him out the expense bill, he is
prone to accuse you of raising the weights on
him. I say let’s quit paying freight.
Credit Conditions Bad.
Credit conditions are bad. Our invoices specify
that a car of coal should be paid for by the tenth
of the month following the shipment; but how
much are you carrying that is ninety days or four
months old, and scaley besides?
Thirty selling agencies in our town, and cus¬
tomers owing all of them, and up to three months
ago each jobber imagined he was the only one.
Companies carrying one hundred thousand dol¬
lars on their books are making somebody a pres¬
ent of six thousand each year, which would make
a nice little profit.
So far in this paper, I am sorry to say, I have
only referred in a weak way to a part of the un¬
satisfactory conditions of the selling agencies.
And perhaps you are tired of it But I am sorry
to say that the local conditions of the retail coal
man are fully as bad, if not worse than what I
have already described.
Irregular Shipments Bother.
Irregular shipments of coal are robbing the re¬
tail dealers all over the country of a large per cent
of trade to which he is undoubtedly entitled.
There is positively no excuse for selling coal in
car load lots to men and concerns who have to
be served by drayage. The status of a steam user
is easily defined, and if his business is not of
such importance as to justify a switch, and he
has the coal hauled to his building or his place of
business with teams or trucks, then he should buy
it from the man who is equipped throughout the
entire year to take care of him. I have noticed
that the majority of men who try to go by the
retail dealer and buy coal by the carload and at
carload rates, are the greatest kickers against
mine weight as a basis of settlement.
The wholesale man who asks for the dealer’s .
business should not attempt to get his business
The retail dealer, accustomed to being classed
with the ice man, is likely to wake up one of
these days to find himself a partner of the gas
company. This is so for the reason that the gas
company will have a domestic fuel for sale and
the retailer will have the organization for selling
it. The two very naturally are going to work to¬
gether because they will belong together.
The gas company is organized mainly to pro¬
duce illuminating and heating gas. In order to
supply gas, it has to treat coal. As it treats coal
to get gas, it naturallv gets a by-product of coke
• — and a few other things — which remain on its
hands for sale.
There is where the retailer comes in. he is
going to have to help sell this coke. That time is
coming pretty rapidly for this reason. It costs
about a million dollars to build even a small by¬
product coke and gas plant. One of even fair
size costs a couple of million dollars. The valu¬
able products from that plant are the gas and
the coke. The gas rates are fixed by the legis¬
lature or the city council and usually they are
not lilieral. To get a profit out of the gas plant,
the coke also must be sold at a pretty fair figure.
Heretofore the coke has been disposed of
mainly to foundries, blast furnaces and steel mills.
The steel mills are now using gas largely and
that curtails the consumption of coke. Not
enough new furnaces and foundries are Ijeing
built to consume all the coke that is being pro¬
duced in ever increasing volume. And so, a new
market must be found for it. The natural sug¬
gestion is that it can be used as a dome.stic fuel.
So, the crushed sizes of coke are being offered to
the retailer and through him to the public. The
furnace and foundry market is already over¬
stocked.
away from him by selling to the customer who
legitimately belongs to him. This is an evil exist¬
ing in the present condition of the retailer that
this national assocation can deal with directly,
and the position it takes on this subject will have
a great deal to do with the support that will come
from the retail dealers throughout the country.
In my work organizing coal clubs in towns, the
first question asked me is, “How can we stop coal
coming here direct to consumers?”
Official statistics show us that domestic coal
represents fifty per cent of the tonnage of the
United States, and with these facts in view, I
believe we should consider seriously how to raise
the standard of the business of the retail dealer.
We can best do this by more thoroughly educat¬
ing them in business methods.
One of the_ shortcomings of the average retail
dealer is his ignorance in figuring his costs. His
bookkeeping is thought by him to be complete
when he fills his ledger full of open accounts with
his customers and his wholesale house, when it is
really but a small part of true accounting. A man
may be satisfied in his own mind that he has a
grievance, but if he is ignorant of the proper pro-
ceedure to establish the evidence, it will avail him
nothing with the claim agent of a railroad com¬
pany. Technical information must be acquired —
not that it is intricate or that it requires the sharp
practice of a lawyer, but it must follow lines
drawn by railroad rules, which are backed up by
the Interstate Commerce Commission and the
legal department.
A thorough understanding of the various
papers read in this national convention, and a fol¬
lowing up of the points made, and the theories
put into everyday practice, would so revolutionize
this vast army of retail coal men that the busi¬
ness would take upon itself such dignity as to
make it worthy of one of the greatest gifts God
has bestowed upon mankind.
What the retail dealer throughout this country
needs is business education, and this education
can best be acquired through the best offices of
organization. And my plan for organization is to
start at both ends and work toward a meeting
point. Local organizations (or I call them “coal
clubs”) more quickly get to the hearts and to the
minds of country dealers. They know their own
needs and in conferring with each other, they can
soon devise a way of securing the right help. At
the_ other end is the National Coal Association
which can. through trade journals and by per¬
sonal correspondence, disseminate information
necessary to the building up of coal ethics.
The big point for the retailer to remember is :
The gas companies will go a certain distance only
along the old line before they find that they have
adopted, perhaps, a wrong policy when they made
their coke primarily for the steel trade and then
tried to sell the left-over sizes to the domestic
trade.
They are going to find, before long, that what
they really want is first gas and after that a
satisfactory domestic fuel. So we are going to
get gas on one side and a new smokeless domestic
fuel on the other. We will still have the manu¬
factured fuel, but it will not be a metalurgical coke
crushed down to sizes which meet the domestic
demands.
When the time comes — indications are that it
is almost here — the retail coal dealer will be a
direct agent of the gas company in distributing
this manufactured fuel or he will find the gas
company in competition with him. The only way
that the retail dealer can avoid having the gas
company as a competitor, is to start out now and
prove a more efficient distributing agent for the
gas company’s by-product than that concern can
lie for itself.
This article is not written to advertise coke.
Rather it is intended solely to give the retailer a
tip as to what may be good business policy.
Julian B. Huff, president of the Latrobe-Con-
nellsville Coal & Coke Company, has announced
the appointment of Messrs. B. Nicoll & Company
as sales agents for the distribution of the coal
produced by the Latrobc-Connellsville Coal &
Coke Company, whose mines are in the famous
Pittsburgh vein, in the neighborhood of Latrobe,
Pennsylvania.
Gas Companies and the Domestic Fuel Question.
164
THE BLACK DIAMOND
[August 28
Prices of Feed for the Retailer’s Horses
Recent inquiry among dealers in feed indi¬
cates that prices, on the 15th of August this year,
were ten to twenty-five per cent above what they
were on the 15th of August last year.
At that time a year ago they were from fifteen
to fifty per cent above what they had been before
the European war was declared.
Quite a number of feed dealers, consulted on
this point, made the prophecy that before the
winter is over prices of all feed will be higher
than they are now. Some say that they will he
twenty to thirty-five or possibly forty per cent
higher than they were on the first of September
last year.
There is, perhaps, some very good reason for
this ri.se in price. The government reports have
indicated a bumper crop of all cereals. However,
the only grain on which the report was at all
definite was wheat and that is not considered,
commonly, as a feed for horses. The oats crop,
it is true, is large, but it is not as big as re¬
ports have indicated. Plenty of oats were grown,
but a big percentage of it is damaged by the
continuous wet weather.
Plenty of ofT-grade oats is on the market and
the price seems to be reasonable. However, the
oats are wet. Even when bought at a low price
they have to be treated by being dried out or in
some other way to remove the moisture. If this
is not done they will mildew and spoil. The cost
Customarily, at this time of the year, the oper¬
ators want to know about how much coal has
moved to retailers and through them to the
householders for the summer. They naturally
want to know because upon that will hinge the
operators’ prices for the winter months. If the
retailer has moved little coal, the operators ex¬
pect to get a good price. If the retailer and the
householder jointly move a lot of coal, the oper¬
ator knows that he is going to have a slim year.
This year, the number of inquiries coming to
us have been unusually large. The operators
wanted specified information. Consequently, we
have tried to get an idea of what is going on.
We have inquired in detail about the territory
west of Chicago and extending north to the
Canadian boundary.
In that territory, we find that the retailers have
stored about seventy-five per cent of the normal
amount of anthracite coal, but not to exceed
thirty per cent of the normal amount of bi¬
tuminous. Several operating companies, basing
their statements upon their own figures and those
obtained from their neighbors, make the state¬
ment that the retailers have not stored more than
fifteen per cent of the bituminous coal they nor¬
mally do. Some retailers have stored none at
all. As a result, we believe that it is carrying
conservation to the utmost to say that as much
as thirty per cent of the coal normally going into
storage in the summer months has already been
moved.
This is going to give the retailer something to
think about for the next three or four months.
The weather has been wet and the roads soft,
hence the farmers have not done very much
hauling. Therefore the farmers still have to
take their coal.
Money has been short and very few persons
have been planning the future with any hope or
Sometimes the retail dealer wonders what is
delaying the coal which he ordered shipped from
the mines and which takes such a mighty long
time to get to him.
He figures the distance from the mines to his
yard. Then he figures what he could do with
an automobile or an auto truck covering the same
distance. When the coal takes three to five times
as long to travel by railroad as it would to travel
over the country roads, the retailer begins to
ask questions. Sometimes he puts these up to the
wholesaler or producer. When he asks those
questions, it is always with an inflection in the
voice which indicates that he does not believe
that the operator is telling him the whole truth
and nothing but the truth when he says that the
fault is with the railroad.
of treatment, of course, increased the purchase
price.
Also, the oats are fully a month late in com¬
ing to market. The farmers could not move them
l)ccause the roads were too wet to permit haulage.
The farmers had a very good sized crop but they
had no way of drying it out and therefore a good
deal of the crop was spoiled by being mildewed.
This is going to subtract appreciably from the
total yield. That, in itself, will make the price
higher.
Further, the corn crop is decidedly late this
year. In some places the farmers had to plant
the second time in order to get a crop at all.
The second planting was so late as to make it
uncertain whether a mature crop could be ready
l)efore frost. Many farmers do not care whether
they have a marketable crop of corn or not. They
can gather the fodder and some corn and grind it
all up and put it into a silo to be used for feed
for their own stock. However, this is not going
to to satisfy the city demand, which must have
the mature and the dried corn.
For these reasons, the feed dealers are pre¬
dicting very high prices for feed this winter. If
high prices rule, of course the retailers will have
to pay. The point is that this is going to increase
the cost of delivering coal and the retailer is not
safe unless he increases his price in order to
cover this larger cost.
courage. Consequently, even among the richer
class, the storage movement this year has been
very small. For that reason the retailer has
bought very little. The coal is still to be moved.
Also the operators had lost quite a lot of money
because they had lost business. The fact is their
steam trade was not up to the normal and they
were losing more money than is customary in
summer. They did not care to compound their
losses by cutting prices on the coal sold to the
retailers. Hence the domestic coal prices have
been higher this year than they have before. Be¬
cause he has been in rebellion against these higher
prices, the retailer has not bought much coal.
These are the facts in the case and now the
question :
“How are we going to get this coal to the re¬
tailer and from him on to the consumer in the
busy months which are just ahead. In September,
October and November the retailer normally has
about all he can do. This year he is going to
have the regular volume plus a lot of this storage
coal to handle. There is only, in the winter, one
slow month and that is customarily December.
Still the retailer does not close down his yard for
December ; he merely has a little surplus time in
which he can move some coal. That is the only
time this year that he is going to have to catch
up on the business that he should have been
doing all of this summer.
All things considered, the slow storage move¬
ment of the last two or three months does not
give the retailer a very encouraging prospect for
the next two or three months. It seems to mean
long hours, hard work and a tremendous strain
on his delivery equipment if he is going to do
the normal volume of business.
This is unfortunate for the retail system a.s a
whole, for it makes such a splendid opening for
the “snow-birds.”
Nevertheless, it is true that a railroad can move
a car at the rate of 250 miles a day or more
between cities. Still, the slowing down of the
movement through the terminals is so great that
the average movement from mine to destination
is at the rate of only twenty-five or thirty miles
a day. In fact, the latter is the record figure of
the United States.
A recent example indicates that the delay is not
always caused by the congestion of these ter¬
minal facilities. Sometimes it may be caused by
the fact that railroad men in charge of the ter¬
minals are not actively on the job and are not
watching the shipments.
For example, a Chicago wholesaler sold a car¬
load of coal to a dealer in Maywood, Illinois.
The coal originated in West Virginia — a good 500
miles from Chicago. It covered that distance in
exactly seven days and, therefore, negotiated not
only the cross country haul but all of the
division terminals en route. It got up to Chicago
and was still fifteen miles away from destination.
It took the Chicago railroads nine days to get the
car that final fifteen miles.
The consignee in question happened to have a
need for the coal. The producer in question had
no more business than the law allows and was
thankful for the order. He wanted, of course, to
give the retailer service. After a delay of seven
days, a skilled railroad and coal man was put
on the job to trace that particular car. He was
on the telephone for exactly two hours before he
could get any information as to where the car
zoas.
He called first the railroad which was to de¬
liver the coal to destination. He had to make
three calls before he could get in touch with the
party who was supposed to know anything about
the car.
Then he was referred by him to the belt line,
from which that railroad was expected to get the
car. It took two telephone calls to get the party
there who knew anything about it. He in turn
disavowed any knowledge of the car but passed
the inquirer on to another belt line.
There two more calls were necessary with the
same result — nobody seemed to know anything
about it.
He was finally referred to the Illinois Central
which was to deliver the coal in Chicago. After
two or three calls there, it was finally discovered
that the coal had been transferred to the belt
line which had just claimed no knowledge of it.
Only when the car tracer was able to dig up the
name of the conductor and the number of engine,
etc., that pulled the car to the first belt railroad
was he able to get any information from that
railroad at all. Then, the information was that
it had been passed on to the second belt.
Confronted by such specific information, the
second belt finally acknowledged receipt of the
coal and said finally that it had passed on to the
railroad that was to make ultimate delivery.
That is, in dull times, when the railroads are
not congested with traffic, everything was running
at loose ends and coal was delayed which should
have been rushed through in short order. Be¬
cause of loose railroad discipline it had taken, up
to that time, more than seven days to move one
car fifteen miles. Before it got to the final
destination it was nine days. That meant sixteen
days from mines to destination, whereas the orig¬
inating roads had hauled the coal over 500 miles
in seven days.
This is one of the reasons why the retailer’s
coal is often much longer in getting to him than
he things it should be.
Government Gets Refund.
Dentcr, August 23. — (Special Correspondence.)
— Following the settlement of a case long pend¬
ing 1)etween the government and the American
Smelting & Refining Company, the sum of $112,-
766.88 was paid a few days ago by the Guggen-
heims. The sum named was payment for coal
taken from mines at Aguilar and Cokedale,
which were said to be part of the coal lands
obtained liy the Guggenheim company fraudu¬
lently.
In addition to the above cash settlement, 3,475
acres of coal lands have been returned to the
federal government on the ground of being ob¬
tained through fraud.
Two hundred and five acres of land have been
sold by the government to the company. The
land is covered with expensive buildings and the
government did not wish to cause unnecessary
loss, so it agreed to accept payment for the 205
acres on which the huildings had been erected,
and which are near other lands which are not in¬
volved in litigation. To acquire perfect title to
the lands which have passed back to the govern¬
ment, the smelting company must buy the tract
outright.
There were two suits involved, one in equity
to compel the return of the coal lands and to
cancel patents; the other a law action to compel
the company to pay the government for the coal
already mined from the land in dispute. The
decree was entered by Judge Trieber of
Arkansas.
The annual distribution of coal contracts by
the Baltirtiore and Ohio occurred the- past week.
About 6,000,000 tons are now under contract for
delivery to the road. The Consolidation and
other large shippers along the road got the most
of the order, as is the usual custom.
The Retailer and the Coal Storage Movement
Getting Coal Through Congested Terminal Yards
No. 9]
165
THE BLACK DIAMOND.
Making a Record With a Small Truck.
The Getzinger Coal Company, of Chicago, be¬
lieving that a rtiotor truck would pay on small
as well as large tonnages and on short as well
as long hauls, recently made an experiment using
a two-ton Autocar and a two-ton Lee loader.
My attention and interest were from the small
dealer’s standpoint, and whether or not such
equipment as described above was going to solve
the problem confronting the small dealer who
doesn’t think his business warrants his buying
and using a large motor truck and installing ex¬
tensive loading facilities.
I was out at the Chicago & Northwestern,
Montrose boulevard team track before the loader
was hauled into position beside the car of coal
and before the truck had received its first load.
I saw a Lee loader, which has been previously
described in the paper, placed beside a car of
lump coal, and three men set to work throwing
coal into the hopper. It required about ten
minutes for these three shovelers to fill up the
hopper, which was of two-ton capacity, and re¬
quired about thirty seconds for the dumping of
the coal from the hopper into the truck. The
truck started out at 8 :35 a. m. and returned in
six minutes, after making a complete round trip
of seven-eighths mile, weighing and dumping
the load included. The following is a record of
the work accomplished by the loader and the
motor truck during that day, August 17.
MOVEMENT OF COAL FOR GETZINGER COAL COM¬
PANY FROM RAVENSWOOD TEAM TRACK, CHI¬
CAGO, TUESDAY, AUGUST 17, 1915.
I oad I.nad Load
No. No. No.
1
Out
8
:33
17
Out
11
:44
33
Out
4
:40
In
8
:41
In
11
;53
In
4
:49
2
Out
8
:46
18
Out
11
:56
34
Out
4
:53
In
8
:54
In
Lu
nch
In
5
;03
3
Out
8
;59
19
Out
12
;45
35
Out
5
:07
In
9:
;05
In
12:
:59
In
5
:16
4
Out
9
•07
20
Out
1
:08
36
Out
5
;18
In
9;
:15
In
1:
20
In
6:
;36
5
Out
9;
;19
21
Out
1:
:25
37
Out
5;
:39
In
9;
;25
In
1;
;3i
In
5:
:49
6
Out
9:
;30
22
Out
1;
:37
38
Out
5;
;50
In
9;
:S6
In
1;
:50
In
6
:01
7
Out
9;
:42
23
Out
1:
53
39
Out
6
;07
In
9:
;52
In
2:
:08
In
6
;15
8
Out
9:
:53
24
Out
2
:19
40
Out
6:
;19
In
10;
:03
In
2;
;26
In
6;
:27
9
Out
10:
:09
25
Out
2:
:30
41
Out
6
;30
In
10:
:15
In
2
:43
In
6
:42
10
Out
10
:19
26
Out
2
:46
42
Out
6
:45
In
10
:25
In
2
:58
In
6
:53
11
Out
10:
:30
27
Out
3
;02
43
Out
6
:59
In
10
:48
In
3
:16
In
7
:07
12
Out
10
:49
28
Out
3
:17
44
Out
7
:10
In
10
:56
In
3
:32
In
7
:18
13
Out
10
:57
29
Out
3
:39
45
Out
7
:22
In
11
:05
In
3
:52
In
7
:30
14
Out
11
:10
30
Out
3
:53
46
Out
7
:42
In
11
;20
In
4
:01
In
7
:50
15
Out
11
:21
31
Out
4
;07
47
Out
8
:15
In
11
:30
In
4
:21
In
8
:30
16
Out
11
:33
32
Out
4
:26
48
Out
8
:40
In
11
:43
In
4
:36
Average length of trip, 1.65 miles.
Labor cost, exclusive of driver, $8.64.
Let US compare this method of loading and
hauling coal with the customary throwing of
coal directly into the wagon box and delivering
it by teams. With the ordinary means of load¬
ing and delivering coal the team could only
have hauled and delivered fifty tons of coal at
the outside, taking in the fact that it would
require thirty minutes for the team to make a
trip of seven-eighths mile weigh, and unload.
During this thirty minutes the shovelers in the
car would be idle. Figuring eleven hours a day,
the team would have made twenty trips and
with the ordinary wagon box of two and one-half
ton capacity making a total of about forty-uve
tons of coal. The motor truck and loader hauled
ninety-six tons of coal with the same number
of shovelers in the same length of time, with
an increase of haulage capacity of about sixty
per cent.
Comparing the use of this method of equip¬
ment with that equipment of the ordinary motor
Getzinger’s Two-Ton Auto Car
truck user of throwing the coal directly into
the truck, it would have required twelve minutes
at least for the truck to receive the load and the
same time in making the trip. During the twelve
minutes while the truck was making the trip the
men would be idle, whereas if they had been
throwing coal into the loader and the truck could
have driven up and received its load in thirty
seconds, the truck would have made at least two
trips while the men were idle waiting for the
return of the truck.
Therefore, the use of a Lee loader and a two-
ton truck made possible twenty-eight more trips
than could have been made by teams and seven¬
teen more trips, a movement of thirty tons or
nearly fifty-five per cent, greater than could have
been accomplished by the ordinary use of motor
trucks. Traveler.
How the Retailer Should Advertise His Coal.
“This space costs us real money, and we are
not sure of the copy?”
Such was the notation appended to the ad¬
vertisement of Geo. H. Rudy & Co., Owensboro,
Ky., a reproduction of which is printed herewith.
The original advertisement measured 15J4 x 7
inches.
We are led to believe that this company wishes
us to criticise the advertisement, and maybe sug¬
gest a change or two for its betterment. This
being the case, let us pick it to pieces from an
advertising point of view.
First let us look at the display, the set-up,
the type arrangement. It is good. There is
plenty of white space to make the reading matter
stand out, and the type-matter is neatly and at¬
tractively arranged, though we prefer up and
down sizes rather than across the page ads. Up
and down ads are a more familiar sight to the
average reader.
Let us look to the text of the reading-matter.
Let us look at the first line, the catch-line, the
line that is supposed to catch the eye of the
reader. “Dependable Coal,” Why is it dependable
coal ? Oh, yes, the second line says, “There when
you need it,” and “The same coal all the time.”
Simday \hniiiie— OTTFX.Knono TNQrTRRR — .Tulv lOl'j
Dependable Coal
Grown in Oaviees County
There When You Need It-The Same Coal a!! the Time
Direct from Our Mines, Three Miles We.st of the City
Now is the time to buy Coal— to wait means you pay more
GEO. H. RUDY & COMPANY
Onrorpo'Dlrif)
Succe.ssful Miners of Coal. Home Phone 1220; Cumb. Phone 37 1'
Advertisement of Geo. H. Rudy & Co., of Owensboro, Ky.
Now let us look at this “ad” from the coal
buyer’s standpoint. For instance I’m a coal
buyer, and coal is something I cannot afford to
or do not want to run short of. The minute
I see my coal bin getting empty, I hustle up,
and see that it is immediately filled or that there
is an adequate supply on hand. Maybe I’ve had
trouble in getting coal when I need it, and in
always getting coal as good as the last lot. If
I have experienced that trouble, then “Depend¬
able Coal” will attract and interest me, and I
will read on and find out the name of the com¬
pany offering that dependable service and reliable
coal.
But suppose I have never had any trouble in
getting coal when I want it and how I want it.
Then “Dependable Coal” will not attract or inter¬
est rne, and I doubt whether or not I will take
the time to find out the name of some other com¬
pany offering no better service or coal than
that which I have been using and accustomed to.
Now suppose that line read, “Dependable Coal,
a little better than that which you have been
using at a little lower price than you have been
paying, and service a little more satisfactory than
that which you have been accustomed to.” Then
I could not help but be interested, and there
would be an immediate desire created in me to
try that company and its coal. So much for the
change in the catch-line.
Let us go on. “Direct from our mines, three
miles West of the City.” Certainly that definitely
explains the location of the mines, but wherein
does such information create any desire in me
to buy coal from Geo. Ft. Rudy & Co., and cre¬
ating a desire to buy is the purpose of all ad¬
vertising. Ah, if the advertisement only read,
“Direct from our mines, three miles West of
the City, assuring the buyer of prompt and
reliable deliveries, lower prices, because of the
shorter haul, and a pure, unmixed, unadulterated
coal.”
“Now is^ the time to buy, — to wait means you
pay more.” Oh ho, this company is threatening
to make me pay more, unless I heed their warn¬
ing. 1 11 show them whether or not any threat
of theirs is going to make me buy.
Now the company is not doing any such thing.
It is not threatening. Its only purpose in telling
the reader of the higher prices, is to save him
some money. The intentions are of the best.
Then how much better it would be to say, “Slack
times, men to keep busy and a dull business sea¬
son enables us to quote prices much lower than
those prices during times when we have all we
can do to fill orders in keeping up with the
demand caused by cold weather and last minute
buyers. If you buy coal at this time, you not
only save a surprisingly large amount of money
per ton, but also a material percentage of your
winter’s coal bill. Take advantage of this op¬
portunity by phoning or mailing your order to
the - etc.”
A saving always sounds so much better to
the buyer than the words “will cost you so much
more do. Always say that it will save you
so much, and not that it will cost you so much
more.
Read over these changes and suggestions, and
see if we haven’t made the advertisement a little
more attractive, a little more interesting, and
above all a little stronger in its appeal to the
regular or prospective coal buyer to buy from
Geo. H. Rudy & Co., the next time he is in the
market.
First Aid Teams.
The first team to win, as a prize, the privilege
of representing its state and section in the Third
Annual Joint hield Meet and Demonstration of
the United States Bureau of Mines and the
American Mine Safety Association, to be held in
San Francisco, California, September 2.3-24, is
the Lehigh, Oklahoma, team.
This team won the interstate championship of
the southwest in the contest held recently at
Kansas City between teams representing six
southwestern states, these teams having been se¬
lected as a result of state-wide meets previously
held in the various states. At the Kansas City
meet, which was held in Convention hall, the fol¬
lowing scores were made, out of a possible 900 :
Lehigh, Okla., team . ggg
Fronten.ac, Kans., team . ggg
Hocking, Iowa, team . 1 . g43
’Texas team . g24
Revier, Mo., team . g23
Calhoun, Okla., team (representing Arkansas) . 812
The regular Texas team did not appear at the con¬
test, the team listed being a “scruh” team picked from
the audience in oriier to make the six teams. This team
did not compete for the grand prize.
166
THE BLACK DIAMOND
[August 28
Men Prominent in the Coal Trade’s Eye.
H. A. Kuhn.
The hardest thing an ordinary man has to
understand is that another ordinary man can be
two sorts of a fellow at once. That is, ordinary
men assume that if another ordinary man is a
producer, he knows nothing about selling; if he
is in a profession, he cannot be practical; and, if
he has a mechanical turn, he cannot possibly be a
commercial success. Of most men that is true,
hence they cannot believe that any other man can
be different.
Recently, somewhat has been said about one
mechanical success made by H. A. Kuhn of Pitts¬
burgh. That story being stold, other ordinary
men set him down as a mechanical genius. That
classifies him at once: “He is an impractical fel¬
low who never had and never will make a dollar.”
The facts do not support the assumption. In
1900 he and his brother, D. W. Kuhn, took over
a mine producing 400 tons a day. In less than
ten years they were producing 3,000,000 tons per
year.
Also, they had come to control 15,500 acres of
some of the best coal land in the world. Inci¬
dentally, this acreage has a value today of $15,-
000,000.
H. A. Kuhn was the president of this company
during this period of growth. He not only super¬
vised the operation of the mines, but he devel¬
oped his own markets, selling most of the coal
himself.
One of his properties was the Blaine mine.
He supervised the production and sold the coal.
While doing that, he paid, for several years, divi-
ends of two per cent a month. For the last
few years, or until he sold it last spring, he paid
dividends of three per cent a month.
Some years ago he was asked to take charge
of the mines of the Rail & River Coal Company.
He had turned them into properties which were
beginning to pay when control changed.
Giving the record full consideration, Mr. Kuhn
is a coal man with a balanced record. In fact,
his mind seems to work in much the same way
as does the motor on his new mining and loading
machine. It doesn’t make any difference to that
motor whether it is moving the machine, driving
the undercutter, shearing the coal or running the
loading apparatus. It works with anything with
which it is thrown into gear.
If Mr. Kuhn’s mind is thrown into gear with
a selling proposition, it sells. If it is geared to
a financial problem, it is a banker. If geared to
a mechanical proposition, it is the mind of a
mechanic. It doesn’t seem to have been built
into any one train of thought. That is why he
can be a successful commercial man and a suc¬
cessful mechanical man at one and the same time.
With him it is a simple process. All he has to
do is to change his way of thinking and he is
a different kind of a man.
For example, he was discussing with a visitor
a certain railroad situation when he -was inter¬
rupted by an inquiry about the status of a certain
coal man in an adjoining district. He made a
l)rief reply — it took only three minutes — but when
he was through he had told the whole financial
status of that district ; the relation of that com¬
pany in question to the ruling financial powers
and the relation of the man inquired about to
his company. The inquirer departed and he re¬
sumed the thread of the other conversation with¬
out apparently missing or repeating a word.
On another occasion, a salesman was somewhat
bothered over a prospect. His customer was a
gas company, the coal for which was sold by a
competitor. The salesman had a report of the
gas company as to the character of coal it was
using, the gas yield per pound of coal and the
amount of coke burned under the benches. Mr.
Kuhn, without using a pencil, told the salesman
to name a certain price which, he added, will
give us five cents a ton more than the other man
is charging and still give the gas company a
profit of fifteen cents a ton.” On a test it
worked out almost to a penny as he had said
it would.
Some years ago, the Institute of Mining Engi¬
neers a.sked him to prepare a paper. He took
some of the data which he had been gathering
for years and in three evenings prepared a mono¬
graph which is admitted to be a complete history
of the Pittsburgh district, an accurate forecast
of the future and an authoritative explanation
of why some coal companies operating there are
prosperous and why others are not so prosperous.
He reduced this latter information to a graphic
map of the Pittsburgh district. From it, it is
possible to figure the sale value of any given
acreage in that field.
In 1907, when the panic hit this country, every¬
body was uneasy; they wanted to know what
would be the influence on business. Mr. Kuhn
had been studying casually, but thoroughly, the
causes of depressions and their influences. He
had all the data at his finger tips. In three
evenings at home he blocked out a monograph
illustrated by graphic charts. This is considered
a standard work on that subject and is made a
permanent part of the library of such institutions
as the National City Bank of New York. Inci¬
dentally it has been used in every commercial
country on earth and in some places has been
translated into other languages.
On another occasion, he wrote a monograph on
currency and banking. This is so comprehensive
it has explained even to bankers and financiers
some things about their own business which they
did not know.
Mr. Kuhn is inclined to depreciate the value of
these achievements because, he says, “they are
nothing.” As a matter of fact, they are not ex¬
traordinary if you consider it possible that a
mind, if used properly, can work as easily in one
channel as in another. But, if you consider the
mind as built to work in one line of thought
and only one, these manifold activities are all
but superhuman. Mr. Kuhn, by being able to
disconnect his mind from one subject and to gear
it up to another, can develop what seems to be an
amazing efficiency. This indeed is the keynote of
his many achievements.
This faculty of independent thinking has en¬
abled him to solve many important questions.
For example: A mine fire started in the center
of a valuable acreage. At this mine the slope
led down a sharp incline to a point where the
coal vein became horizontal ; a short distance
beyond was another sharp incline up toward an¬
other outcrop. The fire occurred in a large
opened area where the vein was horizontal. It
was a dangerous situation because a great ex-
P.\K. 3. Sec. (A) — Loss or Damage of Coal
liY Transportation. Where a loss is sustained
as the result of the carrier’s failure to transport
properly, safely and with reasonable promptness,
and the carrier denies liability, the remedy is in
the courts or state commission. i
Sec. (B) — Weight — How to establish a basis
for a claim for shortage of weight. First, call
the railroad agent’s attention to any damage or
apparent shortage in contents of car, confirm in
writing, and insist that he make proper notation
of damage or shortage on the receipted expense
bill, then unload the car promptly to avoid de¬
murrage. CONFERENCE RULING No. 451,
the Commission HELD, the uncertainty of a con¬
signee as to whether or not he will accept a
damaged shipment does not justify the carrier
in waiving the demurrage charges accruing on
the shipment pending his decision.
If a car of coal has evidence of having been
robbed or appears to be short in weight call the
railroad agent’s attention to this condition as
before directed, and have car weighed on rail¬
road track scales; if there are none nearby notify
the agent that you intend making claim for
shortage of weight and that you will weigh the
coal over wagon scales and ask the agent to
weigh the coal or to be present.
If necessary to weigh over wagon scales have
the weighmaster to make tickets showing the
exact gross, tare and net weight of each load and
then make affidavit as to their correctness, also
that all of the coal in the car was weighed and
further that there was no coal lost between the
car and the scales. The affidavit should be noth¬
ing but a statement of the unloading of the car
and the weighing of the coal.
If neither of these two methods are possible
then endeavor to arrive at the shortage by ar¬
bitration with the railroad agent as one of the
arbiters.
Sec. (C) — Tolerance Weight. Sunderland
Bros. vs. C. B. & Q. Railroad — 21 1. C. C. 632.
The Commission held, in substance, that carriers
should provide for reweighing of coal upon re¬
quest of shippers or consignee and that if after
such reweighing a variation is shown of more
than 1 per cent with a minimum of 500 pounds
from the original shipping weight, the original
plosion was likely and because the fire threatened
to spread into the undeveloped coal area beyond.
Mr. Kuhn decided to go down from the surface
immediately above the fire and through 300 feet
of rock. He drilled holes with such precision
that he found the exact end of the stub-entries
and the room-necks and then poured mud in
through the drill holes until the worst part of
the fire was extinguished. Thereafter, he sent
in the first crew of oxygen helmet men ever em¬
ployed in the United States. They built a con¬
crete dam around the entire area of the fire.
After that was done, he poured in more mud
until the arches over the burning area were com¬
pletely closed. In this way he smothered the
fire in less than three months.
Some years ago he operated a gaseous mine
which was also inclined to be dusty in winter.
He saw the danger of a gas and dust explosion
and decided to avoid an accident by destroying
the explosive tendency of the dust. He found by
calculation that the explosive force of the dust
is forty-five times that of gun powder. This
showed him the real danger. To offset it, he
introduced live steam into the air current. This
was the first application of that principle in Amer¬
ica and his early experiment had much to do with
determining the United States Bureau of Mines,
or its predecessor, to investigate how coal dust
explosions could be avoided. In fact the whole
theory of humidifying mine air to avoid dust ex¬
plosions starts from his experiment.
H. A. Kuhn, who has thus done so many inter¬
esting things, would stand about six feet tall if
it were not for a decided stoop. His hair — the
original crop has been halved by premature bald¬
ness — is black. His brows are heavy and long.
His eyes are black and he has no need of glasses.
His nose is prominent and full at the point, giv¬
ing an indication of lung capacity and hence of
physical endurance. He wears a stubby black
mustache. The lower lip is full, indicating to
the student of physiognomy that in him the joy
of living endures. His figure is rather spare
and he clothes it as to suggest indifference to
fine raiment. He walks rather loosely. His voice
is deep and as he uses it deliberately.
weight and charges should be corrected accord¬
ingly and reweighing charges refunded.
Freight Assessed on Railroad Scale Weights.
Schenck vs. N. & W. Railway Co. (1. C. C. No.
4860). Tariff rule of defendant Norfolk & West¬
ern Railway Company provided that freight
charges will be assessed on weights ascertained at
its regular weighing stations, and that the rule
will not be departed from, found to be unreason¬
able.
It Is Ordered, That the defendants (N. & W.
Ry.) be, and they are hereby notified and re¬
quired to cease and desist, on or before March
15, 1914, and for a period of not less than two
years thereafter to abstain, from applying in con¬
nection with interstate transportation of coal in
carloads the Norfolk & Western Railway Com-,
pany’s tariff rule which reads as follows :
“Freight charges will be assessed on weights
ascertained at Norfolk & Western regular weigh¬
ing stations, and this rule will not be departed
from by the Norfolk & Western Railway.”
Sec. (D) — Damages. If it is a case of the
coal being damaged by reason of transfer from
one car to another while in transit, or from
other transportation causes, call the railroad
agent’s attention to it, confirm in writing, then
arbitrate the extent of damage with him, with
disinterested parties as witnesses, whom you can
have make supporting affidavits as to the condi¬
tion of the coal on arrival.
Whether a car of coal may be short in weight,
transferred or otherwise damaged, the buyer or
owner is still legally bound to receive the coal
and make claim against the railroad as set forth
hereinbefore. He cannot refuse to receive and
unload the car without being subject to demur¬
rage and compelled to pay same under the law
and in case of later recovering damages from
the Railroad the demurrage cannot be recovered.
Sec. (E) — Drayage. The Commission has
made numerous rulings and awarded reparation
for drayage charges where the carrier misrouted
merchandise and caused extra drayage expense
to the owner. However, in such case it is al¬
ways best to have the Railroad authority to incur
the expense as they might wish to arrange for the
drayage themselves. — From a booklet issued by
the Cincinnati Coal Exchange.
Owner’s Rights in Relation to Carriers.
No. 9]
THE BLACK DIAMOND
167
National Coal Trade Golf Association.
“Fore!” and forty-three members of the Na¬
tional Coal Trade Golf Association, drove off in
turn from the first tee, Monday, August 23, at
the Glen Oaks Country Club, Glen Oaks, III.
They were competing for the qualifying round
of the third annual championship tournament of
the association.
R. A. Gardner of Hinsdale, Ill., present cham¬
pion, and Sam W. Reynolds, ex-Nebraska cham¬
pion, tied for the gold medal for low score with
scores of 82.
Qualifying scores for championships were;
S. W. Reynolds, Omaha . 82
R. A, Gardner, Hinsdale . 82
E. T. Franklin, Chicago . 88
K. W. Block, Omaha . 90
G. S. Patterson, Chicago . 93
R. Rea, Hinsdale . 94
C. J. Fletcher Chicago . 96
H. M. Hall, Chicago . 98
B. E. Neal, Indianapolis . 98
J. G. Coneys, Indianapolis . 99
B. L. Sheoard, Chicago . 100
B. J. Fairburn, Galesburg . 101
H. H. Taylor, Chicago . 101
D. W. Heath, Chicago . 102
C. G, Hall, Chicago . 102
A. O. Tandy, Chicago . 103
Qualifying scores for the Vandalia Cup were:
A. J. Atwater, Chicago . 106
M. M. Cloudman, Elgin . 107
W. C. Hill, Chicago . 110
G. Wood, Chicago . 110
D. Davidson, Chicago . Ill
A. G. Blair, Toledo . 112
H. W. Redman, Chicago . 112
Scores qualifying for the Hull Trophy were:
H. L. Reid, Grand Rapids . 119
C. M. Moderwell, Chicago . 119
G. P. Koehler, Chicago . 121
N. F. Birkland, Chicago . 123
J. B. Roynon, Chicago . 124
C. D. Caldwell, Chicago . 124
A. M. Hull, Chicago . 126
J. B. Forbes, Chicago . 128
Pairings for the first match round were played
off Tuesday morning, August 24. Summaries of
the morning matches are :
CHAMPIONSHIP FLIGHT.
Sam W. Reynolds defeated G. S. Patterson, 1 up.
C. J. Fletcher defeated E. T. Franklin, 1 up in nine¬
teen holes.
R. A. Gardner defeated Ridgely Rea, 7 up and 6 to
play.
Karl Block defeated M. M. Hall, 6 and 5.
SECOND FLIGHT.
M. M. Taylor defeated B. E Neal, 2 and 1.
C. G. Hall defeated B. L. Shmjard, 4 and 3.
D. W. Heath defeated J. D. Goneys, 4 and 3.
R. J. Fairburn defeated A. O. Tandy, 5 and 4.
THIRD FLIGHT.
A. J. Atwater defeated George Wood, 6 and 5.
A. G. Blair defeated W. C. Hill, 5 and 3.
M. M. Cloudman defeated David Jamieson, 2 up.
M. W. Redman defeated W. P. Worth, 5 and 4.
FOURTH FLIGHT.
H. P. Pope defeated N. D. Birkland, 1 up.
F. D. Breit defeated C. E. Hostler, 6 and 5.
F. D. Kilmer defeated A. B. Lemmon, 3 and 1.
E. E. Neal defeated J. A. Ballard, 3 and 1.
FIFTH FLIGHT.
H. L. Reid defeated J. B. Roynon by default.
G. P. Koehler defeated A. M. Hulb 4 and 2.
C. M. Moderwell defeated C. D. Caldwell, 1 up.
N. M. Birkland defeated J. B. Forbes, 5 and 4.
Semi-finalists, winners of the morning matches,
were as follows:
CHAMPIONSHIP FLIGHT.
Reynolds defeated Fletcher, 5, and Gardner defeated
Block, 5 and 4.
PRESIDENT’S TROPHY.
Taylor beat Hall, 3 and 2; Fairburn beat Heath, 2 up.
VANDALIA CUP.
Blair beat Newton, 5 and 4; Cloudman beat Redman,
3 and 2.
HEDSTROM TROPHY.
Breit defeated Pope, 1 up; Kilmer defeated Neal, 5
and 3.
HULL TROPHY.
Koehler beat Reid, 4 and 3; Birkland beat Moderwell,
8 and 7.
Finals were played off Wednesday. The win¬
ners were :
R. A. Gardner won the thirty-six hole cham¬
pionship, defeating Sam. W. Reynolds, 4 and 3.
The match was close, neither man having an
advantage of more than three holes until the
sixth hole of the afternoon match. The match
ended at the thirty-third hole.
R. J. Fairburn won the President’s Trophy,
defeating H. H. Taylor, 4 and 3. The loser was
2 up at the end of the morning round.
A. G. Blair, Jr., won the Vandalia cup, M. M.
Cloudman defaulting.
F. D. Briet took the Hedstrom Trophy, F. D.
Kilmer defaulting.
The annual meeting and supper of the asso¬
ciation was held at the Glen Oaks Country Qub,
Wednesday evening, August 25. The election of
officers resulted as follows : President, C. T.
Robert, Chicago ; vice-president, B. S. Hammil,
Pittsburgh ; second vice-president, Sam W. Rey¬
nolds, Omaha; third vice-president, A. G. Blair,
Jr., Toledo, and secretary-treasurer, B. L. Shep¬
ard of Chicago.
Sliced Into the Rough.
It is rumored that A. O. Tandy will bring his
own drinking water with him at the next tourna¬
ment. However, Tandy can certainly line ’em
out.
“Dad” Atwater explained his losing his match
to A. G. Blair, Jr., because he sliced a putt on
the 17th green.
“Herb” Taylor grabs his club short, bends
over and lays into ’em with all his might, and
they invariably go straight and far. We saw
“Herb” make some of the prettiest drives we
have ever seen.
J. G. Coneys addresses the ball in a dignified
manner, and the ball respecting the driver usually
goes straight down the course.
B. L. Shepard, “Shep” as us gollolofers call
him, and N. F. Birkland were the only “south¬
paws” present.
We have heard of pedigreed dogs, horses, etc.,
but we never heard of pedigreed golf clubs until
we saw those of A. G. Blair. The writer was in¬
vited to try several of them, and as each club
was handed him a short history went with it, —
A history like this. “Say, here’s the sweetest
little club you ever saw. Ted Ray gave me that
down at Brooklyn last year, etc., and so on.”
Col. Harold Eldridge was on the job, not par¬
ticipating in the tournament, but showing ’em
how it ought to be done. And “by gosh, he done
it.”
C. D. Caldwell displayed a gold mounted, eb¬
ony-headed golf stick, presented him by A. O.
Tandy. The club was supposed to be impervious
to remarks about driving, as well as to water.
E. T. Franklin and C. J. Fletcher had the
honor of playing the only extra hole match of
the tournament, these two went nineteen holes,
C. J. Fletcher winning the nineteenth by sinking
a long putt for a five.
The tournament, though not as well attended
as some of those in former years, could not be
surpassed for the spirit of good-fellowship it
created among the brother golfers. The fact
that they were business competitors was forgot¬
ten, and each had his words of condolences or
congratulations ready to extend to the other man.
On the ground that coal rates, fixed by the
Colorado public utilities commission, are “dis¬
criminatory and confiscatory,” the Union Pa¬
cific and the Colorado & Southern Railroads
have appealed to the supreme court to re¬
view the findings of the commission, set them
aside and modijy the rates. Attorneys for the
roads state that the actions are test cases,
and will be carried to the United States su¬
preme court, if necessary. The outcome will
determine whether or not the railroads will
also appeal from the passenger rates recently
instituted by order of the commission.
1 — Ex-President Heywood tellingr how it should he done, and Blair doing* it. 2 — H. Reid. 3 — H. J. Reywood displaying his form, both physical and golf. 4 — C. O.
Hall. 5 — Eeft to right: Heal, Taylor, Heath, Coneys. 6 — Eeft to right: Cloudman, Franklin, Hostler, Bae, Hill, Tandy, Breit, Jamieson. 7 — ^*‘Charlie” Hostler lining ’em
out. 8 — Xieft to right: Hill, Breit, Gardner, A. M. Hall, Atwater, Heywood, Blair, Rea, Tandy, Hostler.
168
THE BLACK DIAMOND
[August 28
Aerial Tramway Overcomes Handling Obstacles
When the property of the Harlan-Home
Coal Company at Harlan, Ky., was opened up
the problem of getting coal down the moun¬
tain from the mine to the tipple, a distance of
900 feet with a 430 foot drop, was finally
solved by installing a Broderick-Rascom
Aerial Wire Rope Tramway.
The tramway is of the two-pocket or jig-
eration of the tramway. He is stationed at
the loading end and controls the pulling of
the buckets as well as the brakes regulating
the speed of the line. The buckets, which
dump automatically at the discharge station,
are shown in the photograph herewith.
Further particulars concerning this tramway
will gladly be furnished any reader of The
Intermediate Supporting Tower.
back type and, as the name implies, consists
of two pockets operating back and forth upon
two stationary track cables controlled by
means of a small endless moving cable. The
tramway, as said above, is 900 feet long with
a 430 foot drop in this distance, which permits
gravity operation. In other words, the loaded
bucket going down on one side hauls the
bucket back on the other side. There is only
one intermediate supporting tower, which is
shown by the photograph herewith.
The track cables used are inches in
diameter and the pulling rope of an inch
in diameter. The buckets have a capacity of
Black Diamond upon application to the Brod-
erick-Bascom Company of St. Louis.
Columbus Coal Bids.
Coal bids for various Columbus city depart¬
ments opened some six weeks ago were rejected
because of the reduction of Hocking Valley rail¬
road freight rates, which was announced after
the bids were opened. In the hope of getting
a better price new bids were taken, which were
opened on the 17th inst. They are as follows :
Scioto River Pumping Station, approximately
Discharge Station and Tipple.
fifty-two cubic feet each. The buckets are
controlled at the loading end by a six foot,
two-groove rubber lined shaft equipped with
two 48 inch diameter by 4 inch space brakes.
The tramway develops a capacity of 45 to 50
tons an hour.
The coal is brought out of the mine m cars
to the loading station where it is transferred
into hoppers and then into the tramway buck¬
ets to be carried down the mountain and dis¬
charged into shaker screens at the tipple.
Only one man is required for the entire op¬
3,500 tons — Elk Coal Company, Columbus, Hock¬
ing mine run, $1.44 and Cambridge mine run,
$1.46, West Virginia mine run, $1.42; New York
Coal Company, Columbus, Hocking mine run
$1.60 ; Fletcher-Williams Company, Columbus,
West Virginia mine run $1.45; Gem Coal Com¬
pany, Nelsonville, Hocking mine run $1.53; Vic¬
toria Coal Company, Columbus, Hocking mine
run, $1.48. Municipal Light Plant, 10,000 tons
nut, pea and slack — Victoria Coal Company, Co¬
lumbus, Hocking, $1.19 ; Fletcher-Williams Com¬
pany, Columbus, West- Virginia, $1.12. Garbage
Reduction Plant, 3,000 tons nut, pea and slack —
Fletcher-Williams Company, Hocking, $1.19,
West Virginia, $1.12; Victoria Coal Company,
Hocking, $1.19. City Hall and miscellaneous de¬
partments, 1,000 tons delivered — Franklin Build¬
ers Supply Company, Columbus, bids of $2.29,
$2.05, $2.60 and $2.10 on Hocking lump; J. Rapp
& Co., Columbus, $2.30 for all, on Hocking lump;
M. A. Suydam & Co., Columbus, $2.17}4 for all,
on forked lump.
Boston and Maine Coal.
The Boston & Maine Railroad will receive at
its Boston office until noon of September 10th,
next, bids for furnishing 720,000 tons of bitumin¬
ous coal per year. Also bids for transportation of
this coal for a like period. The company invites
bids under 6 schedules, as follows ;
Schedule A : Steamer charter for six years
and for five years starting September 1, 1916.
Schedule B : Steamer charter for one year and
for five years starting November 1, 1917.
Schedule C : Contract for approximately
720,000 tons of Bituminous coal to be delivered
on steamer at loading pier at one year commenc¬
ing April 1, 1917.
Schedule D : Contract for approximately
720,000 gross tons of Bituminous coal to be de¬
livered alongside Mystic Wharf, Boston, Mass.,
in one year commencing April 1, 1917.
Schedule E : Contract for approximately
7,600,000 gross tons of coal f. o. b. loading pier,
to be delivered in five years.
Schedule F : Contract for approximately
3,600,000 gross tons of coal f. o. b. alongside
Mystic Wharf, to be delivered in five years.
New Storage System.
As the practice of storing bituminous coal
grows, new systems are introduced for getting it
into and out of a pile. The latest one is called
the circular storage system. It is intended mainly
for public utilities companies and for the mines
which want to store an unneeded size until there
is a market for it. However, since it works well
in units of 5,000 tons or less, it is valuable for
retail concerns of some size.
The equipment is simple. It consists of a loco¬
motive crane built with a long radius arm which
is equipped with a self-filling grab bucket. This
crane travels on a curved track around a central
point. From the central point the crane receives
its coal from a concrete hopper built directly
between two parallel tracks or direct from the
car.
The manner of storing coal is illustrated by
the outline drawing reproduced herewith. This
shows two railroad tracks traversing an area in
Circular Storage System.
which coal is to be stored. Customarily, between
the two is placed a concrete hopper into which
the cars can drop the coal through hopper bot¬
toms. Intersecting these two railroad tracks at
two points and running in circle are two other
tracks. On these latter the big locomotive cranes
move. The crane has, usually, a radius of 100
to 110 feet. The grab bucket takes the coal from
the central storage point and swings it around
and places it in a pile.
Recovery is effected by reversing this opera¬
tion; that is, by taking the coal from the pile
and putting it directly in the car or, if desired,
into an auto truck.
The grab buckets have a capacity of five cubic
yards and of handling 240 tons of material per
hour. This method of handling coal was de¬
signed and is patented by the Link-Belt Company.
No. 9]
169
THE BLACK DIAMOND.
Why Incorporate?
A coal dealer who had run his business for
about ten years or so as a personal enterprise
recently filed articles of incorporation. Instead
of being “John Smith, Coal Dealer,” the style of
the business became “The Smith Coal Company,
Incorporated.”
He was asked his reasons for making the
change, and for apparently losing the intimate
personal connection which was insured by the
operation of the business on an individual basis,
xiis reasons were sufficiently interesting to be
worth presenting.
“In the first place,” he said, “I am not as yoimg
as I was when I started. I realize that I am not
going to be here to run the business forever,
and yet I think I have made something that con¬
tains the germ of permanence. I want to leave
it in such shape that it can go on 'without me,
if necessary; and the only plan which meets that
requirement is the corporation.
“Next, there is the question of liability. I have
made a little money out of the business, by keep¬
ing my nose at the grind-stone ten hours a day
for the last ten years; and I don’t want to lose
any of the savings I have made, I own my own
home, have a few gilt-edged bonds and am trying
to build up a little personal estate, apart from
the business. As long as I run it individually,
all of my personal property is subject to any de¬
mands which may be made upon me, in connec¬
tion with the business. For instance, if one of
my teams were to run over and kill a man, and
iudgment were rendered against the business for
$10,000, I, personally, would have to pay it, if I
had to sell my home to do it. By incorporating
I relieve myself of any personal liability for the
acts of the corporation, and restrict the operation
of any judgment against the business to its assets.
“In the third place, operating a corporation re¬
quires a certain amount of what some of my
friends call red tape. You have to be a little
more careful, as a corporation officer, than as
an individual. Reports have to be made to the
Government, for instance, that are not required
of individuals operating their businesses as such.
The main advantage of this is that I am sure
to be more careful about charging companv ex¬
penses to the company, instead of to John Smith,
personally. I will be more likely to see that all
sorts of records and accounts are more accurate¬
ly kept, and to be in a position to make a report
on it at any time to anybody who has the au¬
thority to demand it.
“Besides, there is a certain prestige about a
corporation that an individual seldom has. The
public feels it — your banker appreciates it. It
means more than the individual name, and lends
an air of substance and permanence to the con¬
cern. These are some of the reasons I had for
making the change — but I believe they are
enough ; don’t you ?”
Delivering Coal as an Art.
An Eastern coal dealer recently said in an
announcement to his customers regarding the de¬
livery of coal during the summer months, that his
men have perfected the art of putting the coal
away with the least possible inconvenience to his
cu.stomers.
“And it is an art.” he continued. “We spend
time and money training our drivers to get the
coal into your bins without disturbing, displac¬
ing, or spoiling anything. Their orders are to
leave your place in exactly the condition they
find it — except that your bins are to hold the
best coal mined. Our coal will make you hot,
but our delivery service will not.”
The important part played by the delivery end
of the business in establishing a dealer in the
good graces of his customer — or otherwise, as
the case may be — suggests that the plan described
some time ago in this department, whereby a
retail coalman saves a good part of his invest¬
ment by having his coal delivered by someone
else’s teams, has its weaknesses. The dealer who
controls the delivery work absolutely can come
much closer to insuring satisfaction with this
featuie than the concern which turns over this
job to somebody else, and “hopes” that it will
l)e well done. Such minor points as looking out
for the lawn and saving the appearance of the
coal window are not likely to be given much
attention by the man who isn’t paid to look out
for these details.
In this connection, the dealer who is handling
soft coal, which at this season of the year is very
dry and dusty, should instruct his drivers to turn
the hose on the coal after it is dumped and
before it is placed in the bins. This will eliminate
the dust, and will save a lot of damage to the
hangings and furniture of the customer, who,
if she be a woman, will call you blessed for
this forethought.
You and the Accountant.
Just to make assurance doubly sure, and to
convince yourself that your plan of handling
your books is the best it is possible to devise,
entailing the least possible labor, have an expert
accountant make an examination once in a while.
Do this whether you have any stockholders to
report to or not, and simply for your own per¬
sonal satisfaction. The chances are that the
criticism which an expert will be able to make —
and the word is used in its positive, constructive
sense — will be worth a great deal to you.
Bookkeeping and cost accounting are almost
interchangeable terms ; that is, all that one knows
about the cost of doing business must be shown
on the books. The average accountant has had
to study costs, and knows how to advise regard¬
ing keeping the books so that the essential facts
may be readily accessible. Hence if you have
been working in the dark regarding methods of
figuring costs, of taking inventories, of depart-
mentizing the various operations of the yard,
etc., you can get suggestions regarding all these
things from the accountant.
The smallest business can well afford to have
the benefit of expert advice of this sort ; and the
large dealer can’t afford to get along without it.
Look a Little Ahead.
The man who succeeds is the man with a
vision.
“Vision” is just as necessary in the coal busi¬
ness as it is to the head of a million-dollar
bank. Handling the every day affairs of a
modest coal-yard requires, in order to insure
success, the same broad outlook which one usual¬
ly thinks of only in connection with huge enter¬
prises and large capitalization.
A vision does not need to be something so
grand and magnificent as to be out of reach
in this life. It can very well take the form of
a new office building or increased yard-room. It
may have to do with motor truck delivery or
a new home. And when some such project or
vision has been created, it is going to help move
the business forward. The man who wants to
accomplish something, and who is using his busi-
ess as a means to an end, is not going to over¬
look many possibilities.
Look ahead and see what it is that you are
trying to reach. Try to create in your own mind
a picture of the Imsiness as you want it to be
one, five, ten years from now; and then make a
special effort to get there a little ahead of the
schedule.
Typewritten Bills.
The use of a typewriter in a coal otnee helps
not only in that it makes a neater-looking and
more legible statement, but it also impresses the
customer with the business-like character of the
office. Few^ men produce hand-writing of the
“steel plate” type, and consequently it is not
often that a hand-written statement has the good
appearance of one which is gotten out on the
typewriter. In some cases it would take longer
to use the machine than write by hand, but in
others the speed would be greater. Certainly
for all business communications, such as cor¬
respondence with wholesalers and supply houses,
letters to customers, etc., the typewriter should
be used, as this will make for more rapid han¬
dling of the proposition.
The Business Barnacle.
Do you know what a barnacle is?
It is a small parasite which attaches itself to
the bottom of a ship, and is carried along with it.
Naturally, the horsepower of a barnacle is
zero.
The absolute zero of power is reached in the
marine parasite of this variety, just as it is
reached, from a commercial standpoint, in the
retailer who assumes the barnacle attitude.
A man of this type merely “takes things as
they come,” and is carried along by the impetus
of trade. People buy iris coal, partly from neces¬
sity, partly from force of habit; never because
he has actively interested himself in creating in¬
terest in his coal and his service and endeavoring
to produce sales.
It may be unfair to say that there are more
barnacles in the coal business than in other lines;
but the fact that coal is the staple of staples,
and is needed so definitely that the demand for
It comes without any .special effort on the part
of the dealer, encourages a passive attitude and
the assumption that the business will come of its
own accord.
On the other hand, the fact that definite efforts
to secure new business and arouse the interest
of the trade often fail to produce immediate
results of any definite, tangible variety, forms
an argument, in the mind of the man who has
tried them, in favor of leaning back and being
a comfortable barnacle.
But the successful, up-to-date, hustling dealer,
who is using all of the business-getting devices
at his command, knows that the ultimate results
justify all of his efforts, even though he cannot
see them immediately. The proof lies not in
single sales, but in a comparison of volume with
volume, month with month, and year with year.
Don’t be a barnacle ; get up and hustle, and
do your part to keep things moving.
Anthracite Rate Case.
New York, August 26.~(Special Correspond¬
ence.) — The meeting of the executive officials of
the anthracite coal companies and their counsel
carried over from last week was resumed at 11
o’clock on Tuesday morning. After a short ses¬
sion the conference was adjourned for a further
meeting. No details were given out, either re¬
garding the result of the deliberations or the
dates of the next meeting.
As the order of the Interstate Commerce Com¬
mission reducing anthracite rates becomes effective
Oefober 1st, action by the coal company inter¬
ests must be taken before that date. It may
be stated that nothing definite has yet been de¬
cided along any of the lines intimated in the
public reports. It has been suggested that each
one of the anthracite companies most largely
affected by the rate reduction act on its individual
account; also that a joint presentment in behalf
of all the roads be made ; also an appeal to the
courts or an application to the Interstate Com¬
merce Commission for a rehearing.
•Announcement was made of the incorpora¬
tion of the Hoffa Brothers Coal Company,
with a capital stock of $20,000. Arthur P.
Hoffa, Charles W. Hoffa and Estella Hoffa
are given as the incorporators.
170
THE BLACK DIAMOND
[August 28
PUBIiISKED ETEST BATUBDAT BT THE
BEACH BIAMOBTl) COMPAir7.
Subscription price, $8.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH BIAUCND COMPAmr (INC;
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1602 Oliver building.
Saturday, Au.gust 28, 1915.
INDEX.
Special Articles.
Page
Effect of Rate Changes on the Retail Trade . 161
A Point or Two About the Car Situation . 162
Importance of Coal Receiving Facilities . 162
How to Strengthen Local Coal Trade Conditions.... 163
Gas Companies and the Domestic Fuel Question. . . . 163
Prices of Feed for the Retailers’ Horses . 164
The Retailer and the Coal Storage Movement . 164
Getting Coal Through Congested Terminal Yards.... 164
Government Gets Refund . 164
Making a Record With a Small Truck . 165
How the Retailer Should Advertise His Coal . 165
First Aid Teams . 165
Men Prominent in the Coal Trade’s Eye . 166
Owner’s R.ghts in Relation to Carriers . 166
National Coal Trade Golf Association . 167
Aerial Tramway Overcomes Handling Obstacles . 168
Boston and Maine Coal . 168
New Storage System . 168
Field of the Retail Dealer . '. . 169
Anthracite Rate Case . 169
Editorial . 170
How Trucks Work With California Coal Trade . 171
The Welsh Coal Crisis . 171
Facts Which Determine Our Export Prospects . 173
Wasteful Coke Production . 180
Market Reports.
General Review and Chicago . 174
Pittsburgh, St. Louis and Omaha . 175
Cincinnati and Denver . 176
Duluth, Birmingham and Detroit . 177
New York . 178
Philadelphia and Buffalo . 179
New England and Baltimore . 180
Hocking Valley . 15
The Retail Idea.
F. F. Herrick, the agent at Savannah,
Ill., of the Neola Elevator Company, has
recently advertised that he is forming a
coal club. When they inquire about it,
he explains;
“We will take, weekly, semi-monthly or
monthly, any amount of money which
you may want to deposit. We will give
you credit for this amount and guarantee
to give you, at any time you say, the
equivalent in any kind of coal you select.
By paying us in installments, ahead of
time, your coal bill is paid when you need
coal and may want money for some other
purpose.”
The householders in many small places
haven’t large bins for coal storage. They
would like to buy their coal in summer,
but they haven’t the room. Maybe they
haven’t the money. However, if each
man puts in $1 or $5, this soon mounts
up to the price of a few carloads. The
retailer, receiving this money, instantly
invests it in the kind of coal designated
by the people. He puts it in his own
storage pile. He has the cash with which
to pay the bill.
Then, when the winter comes, the coal
is on hand. Then, any man who has or¬
dered coal can simply designate that he
wants deliveries made at a given time.
The club idea has been worked out by
merchant tailors and others. There is no
good reason why it should not work out
fairly well in connection with the sale of
coal. This one retail concern is trying
it out.
Anthracite Rates.
Many statisticians have gone into the
history and the recent development of the
anthracite trade. They came to one con¬
clusion after looking first at the geology,
at mine equipment, at the difficulty to
prepare coal, and at the present tendencies
of market. That was :
Anthracite production grew quite rap¬
idly for a number of years, then it reached
the present figure and has been virtually
unchanged for several years.
Therefore anthracite production is ap¬
proaching, if it has not reached, maxi¬
mum.
This is not our own conclusion, under¬
stand. It is that of the statisticians, some
of whom have been employed by the
United States government.
With that point in mind, it is interest¬
ing to consider the rates recently estab¬
lished by the Interstate Commerce Com¬
mission. Those, as liberally outlined
elsewhere, are fifteen to twenty-five cents
a ton, on the average, lower than they were.
Two possibilities grow out of these lower
rates. One is that the independent oper¬
ators, who have been making practically
no money on the coal at the mine mouth,
will have a chance to make fifteen to
twenty-five cents a ton more. This would
only be a fair profit. That seems to have
been the intention of the commission.
The other is that the anthracite oper¬
ators will do the obvious thing for the
coal trade, namely, give the benefit of
this reduction in rates to the retailer, who
in turn will give it to the consumer.
The latter consideration suggests this
question :
“Why pass on this reduction in rates to
the consumer?”
One purpose of the reduction in price
would be to increase the volume of sales
by giving bituminous coal stronger com¬
petition. However, if the anthracite area
is limited and if productive capacity does
not warrant it and especially if production
has already reached maximum, it is out
of the question to increase the volume of
sales because production cannot be in¬
creased. Why then pass on the reduction
to the consumer?
The only answer to' the question is
that a few coal men cannot stand prosper¬
ity and therefore cannot endure to make
a profit out of their business.
Industrial Commission.
The Commission on Industrial Rela¬
tions of the United States has been the
subject of much caustic comment. Even
so, none of its enemies has been able, .so
far, to condemn it quite as effectively as
it has done for itself. Sober, thinking
persons have said of Frank Walsh, for
example, that he was exploiting his par¬
tisanship under cover of an United States
government job, and, therefore, was mak¬
ing the government a partisan in a social
dispute among its own people.
This seemed to convict the commission
at first, but the actual effect was to con¬
vict critics of being reactionaries. So
the commission escaped the criticism
leveled at it.
Now, however, the Commission has
gone on record, and its critics are repeat¬
ing joyfully: “Would that mine enemy
would write a book.” It has put out a
triple-headed report. All of the hot-heads
appointed on that Commission could not
agree on what should be said. So, we
have three suggested solutions of the la¬
bor situation. They convict themselves,
not by the fact that they could not agree
— even the supreme court members can¬
not do that — but because they tried to
find a solution for such a perfectly human
thing as the labor problem.
A small commission made up of small
men tried in one brief report to set down
a rule which for all time should fix the
relations between labor and capital. This
in essence and in fact is ludicrous.
That is to say, the government is con¬
cerned only with seeing that no injustice
is done. It does not go so far as to regu¬
late conditions so that a man who is a
worker must remain a worker always. It
dare not, by government degree, bring
back the old feudal system and all that it
entailed.
Still, if the government fixes relations
as rigidly as this commission proposes, it
would mean just that. It would mean that
a man who is today in the working class
must forever remain in the working class ;
a man who is in the capital class must
forever remain in the capital class. This
is making hereditary both management
and labor. All human society is trying
to get away from just that condition.
Finding a solution for the labor prob¬
lem, as this commission is trying to do,
means therefore nothing else than to put
opportunity under the knife and kill it.
The whole effort of the commission is
too silly to be considered by those who
are struggling for real economic liberty
in America. Because its purpose is futile,
the commission condemns itself as useless.
An Unwarranted Assertion.
In the report of the Interstate Com¬
merce Commission on the “anthracite
rates and practices case,” Commissioner
McChord, who wrote the opinion, said on
page 232 :
“It has been the policy for many years
of these carriers to gain a monopoly of
the production and sale of anthracite
coal.”
This strong statement is qualified no¬
where in the whole document, so far as we
can find.
The ■ Sherman anti-trust law makes it
a felony to monopolize anything, or even
to try to gain a monopoly. In fact, an in¬
tention to monopolize anything, if proved,
is as much a violation of the law as is the
act of monopoly itself.
Therefore, in that four-line statement.
Commissioner McChord accuses the car¬
riers of studiously committing a crime.
The language quoted, when put alongside
the law, leaves the reader in no doubt.
Yet, some years previous to the issuance
of Mr. McChord’s statement the attorney
general of the federal government had
tried and failed to prove that the anthra¬
cite coal roads were doing just what Mr.
McChord charges. The Supreme Court
of the United States said unequivocally
that the government had not proved its
charge.
Under those circumstances it was, to
say the least, an unwarranted assertion
which Chairman McChord made. Whether
or not he committed a more serious of¬
fense is for the attorneys and the courts
to decide.
No. 9]
THE BLACK DIAMOND
171
How Trucks Work in the California Coal Trade.*
When I was asked to make a short statement
on “The Economy and Efficiency of the Motor
Truck Over Horse Drawn Vehicles” I 'remarked
that I had better decline, as I was far from con¬
vinced of the economy of the former as against
the latter for delivery of sacked coal, and that is
what interests the retail coal dealer. I was told,
however, to go ahead and state our experience
whether for or against the motor truck, as it
might help some other dealer who was wrestling
with the same problem. The conditions of de¬
livery vary so much that I can only give you an
idea of what our conditions are in Oakland, Cal.,
and the results we have obtained, and you can
adjust them to your own particular cases.
First of all, our firm does a larger business in
sand, gravel and rock, commodities which are
handled entirely in bulk, loaded and unloaded
without any unnecessary delay. In a business of
this kind the worth of the motor truck is un¬
questioned, and, therefore, its value in the deliv¬
ery of sacked coal is only recognized by us as a
secondary consideration and auxiliary to this part
of the business, and can be applied when the de¬
livery of building material is light and, therefore,
enables us to keep our trucks busy delivering coal
when the more profitable deliveries of material
are slack.
However, long before we had any trucks on
building material, we got the idea that on account
of our many long hauls, a motor truck could be
used in our coal department to advantage, as our
long hauls average up five and six miles in four
different directions. We enthused over the idea
until it became a reality and we had the first five
ton coal truck in Alameda county. The machine
we purchased was recognized, at that tirne, as
being a very good make, but the construction of
motor trucks was going through the same stages
that the first passenger cars did, and we paid
dearly for our experimenting and pioneering. It
was a rigid frame truck, built very heavy, and
every time it went over a bump it got out of
alignment and refused to go; in other words,
some days it ran and some days it didn’t, but
mostly it didn’t, and it could usually be found
gladdening the heart of some repair rnan. I am
going to pass over the details of the life of this
truck, however, as they are indeed painful and
have no bearing on the operation of the present-
day motor truck.
We were so keenly disappointed^ over our first
experience that we waited some time before we
bought another. In the meantime we hired trucks
and experimented carefully with the different
makes under all sorts and conditions. Finally,
becoming convinced that the experimental stage
of motor truck construction was past, we picked
out the truck that had shown up best under tests
and bought it early in 1914. This is a five-ton
worm driven dump body truck, and the service
it gave was so excellent that we purchased an¬
other, a duplicate of the first, a month or so later.
As the material business declined with the com¬
ing of the rainy weather, we put the trucks on
coal deliveries. It did not take long for us to
discover that even with a fast modern truck coal
deliveries in sacks could not be made as cheaply
as by horse-drawn vehicles. The earnings of the
trucks when hauling loose material that could be
quickly loaded and dumped off were quite dif¬
ferent from its earnings when sacked coal had
to be loaded and unloaded sack by sack.
For instance, during the summer months one
truck was putting 144 yards, or approxirnately 190
tons of sand and gravel on the municipal audi¬
torium job per day of nine hours with no one
on the truck but the driver. This was a two-mile
round trip haul, and at twenty-five cents per yard
showed daily gross earnings for the truck of
$36.00 with a daily average of seventy-two miles.
Of course, these were ideal conditions ; the mate¬
rial being loaded on the truck out of_ overhead
bunkers and being dumped at destination into a
bunker underneath the truck.
When we put the truck on sacked coal, it de¬
livered an average of fifteen tons per day with
one hour overtime, and we kept two extra men
on the truck to help pack the coal, and the daily
mileage was thirty-five miles.
Of course, when deliveries are being made by
the truck and horses also, the trucks are naturally
assigned to the most difficult apd longest hauls
and this must be taken into consideration in mak¬
ing up cost figures. The big drawback on sacked
"An address before the California Fuel Dealers’ Asso-
'^ation. . „ ,
tManager of the Pacific Fuel & Building Material
Company, Oakland, Cal.
By Frank G. Coxhead.f
The Hauls Are Long and Expensive, But
the Trucks Have Some Big Advantages
Over Horse-drawn Vehicles.
coal is the length of time taken to load and un¬
load. A five-ton load of coal is generally split up
into several smaller orders and the truck has
to manoeuvre around the yard for some time to
get the orders on in proper rotation. Then again,
the unloading and packing in of 100 sacks of coal
even by three men is a slow proposition and a
truck does not earn any money standing in the
street or in a dealer’s yard. It must be kept mov¬
ing to be economical.
The large lumber companies found this out a
long time ago and now have a load ready for each
truck the minute it arrives in the yard. This load
is loaded on a dummy and transferred to the
truck in a few minutes. This scheme is also in
vogue in the east with the large department stores
that use motor vehicles for delivery of packages ;
the packages being loaded into a cage which is
transferred bodily to the truck when the empty
cage is taken off.
Now as to comparison of cost between horse-
drawn vehicles and trucks : the cost of delivpy
by horses on our long hauls from figures covering
a period of years shows up pretty close to $1.00
per ton. In forming an estimate of cost of truck
delivery we have used the following figures :
Interest on investment at 6 per cent . $ 324.60
Insurance (fire liability, property damage, theft,
collision) . 250.00
Driver, $24 per week . 1,248.00
Fixed charges for year . $1,322.60
Fixed charges for day . 6.07
COST PER MILE.
Tires (7,000 miles guarantee, $405 set) . $ .0570
Gasoline (four miles per gallon at 10 cents) . . .0250
Lubrication (250 miles per gallon at 60 cents) .0030
Transmission, 5,000 miles per gallon, 65 cents
Rear axle, 2,000 miles, 3!4 gallons, 65 cents
Repairs and overhauling every 15,000 miles
for $375 . . . .0250
Depreciation — Truck good for 100,000 miles. . .0500
Operating cost per mile . $ .1600
Figuring on coal sacks we must take the fixed
charges per day . $ 6.07
Two helpers at $2.75 per day . 2.50
Thirty-five miles at 16 cents . 5.60
Overtime . 1.50
Total cost per day . $ 18.67
Or, a cost of $1.25 per ton.
So it seems that the cost of motor delivery is
higher than the cost of delivery by wagons. But
there are certain advantages the motor truck has
that must not be underestimated and are often
of material worth to the coal dealer even though
it may cost a few cents more per day. As I said
before, the trucks get the long and difficult hauls,
which leaves the easier ones for the horses.
We have noticed a great difference in the con¬
dition of our animals at the end of the winter
season. Instead of being all used up as they were
before the day of motor trucks, they come
through the season in excellent condition.
Then, again, the amount of work a truck can
do without any rest is unlimited. It does not
know the meaning of overtime.
Another advantage that the truck has is better
and quicker service. Where it used to be neces¬
sary to have orders in by noon from the outlying
districts in order to make delivery the same day,
it is now possible to take out orders that come
in as late as two or three o’clock.
The advertising feature is also a strong one, as
there are lots of people who are attracted by a
well kept, smooth running coal truck. Some are
attracted from a humanitarian standpoint, espe¬
cially those who live on the steeper grades and do
not like to see the spectacle of a load of coal be¬
ing hauled up by horses, and who can only see
in that spectacle a case of cruelty to animals. So
you can readily see that, while our experience
when looked at in the light of dollars and cents
has not been favorable to the motor truck, it has
advantages which may or may not offset the dif¬
ference in cost. But the worth of these consider-
ations must necessarily rest with the individual
coal dealer.
There are a few points which we have learned
from that best of teachers— exoerience— which
may be valuable to anyone contemplating the pur¬
chase of a truck.
In the first place, get a good truck made by a
responsible firm that is in the truck business to
stay. Then see that the truck is properly taken
care of, many a truck being ruined by lack of
proper lubrication.
Get a truck that operates with a minimum of
noise. Nearly all the manufacturers are working
on this feature and that is the reason why thirty
per cent of the trucks now being manufactured
in the United States are being built with the worm
drive instead of the noisy, dirt collecting chain
drive. It is only a question of a short time, in
my opinion, when all trucks will be so con¬
structed.
Last, but not least, do not overload your trucks
at any time beyond their capacity, because if you
do, the little saving effected will be eaten up ten
times in damage to the truck.
The Welsh Coal Crisis.
A special correspondent of the Journal of
Commerce of Liverpool says;
“The South Wales coal owners, having
laid details of their scheme to ensure ade¬
quate supplies of coal being available for
home consumption before the Coal Exports
Committee, and having received from that
committee notification that the scheme would
be sympathetically considered, it remains for
the coal owners to lose no time in putting
their scheme into practical working order.
The government authorities will undoubtedly
require to see results, and until something def¬
inite is given to the government, coal exports
will probably find considerable difficulty in
obtaining licenses to export their coals. The
authorities have now a firm control on the
coal export trade, and if they are convinced
that the supplies for home consumption are
needed, the refusal of licenses will be so
exercised that collieries will be forced either
to stop or sell their surplus to home consum¬
ers.
“The eastern and western committees of
coal owners formed to carry out the scheme
submitted to the government have now a hard
task before them, but the difficulties will in
no wise prove insurmountable if the individ¬
ual members loyally agree to carry out the
clauses of their agreement. In normal times
70 per cent of the total production of the
South Wales and Monmouthshire coal field is
sent abroad, and the remainder is utilized for
home consumption. The coal output has been
reduced by 10 to 15 per cent, if not more, the
admiralty authorities have greatly increased
their requirements over the quantities taken
in normal times, and the bunkering require¬
ments of vessels at the ports are much lieav-
ier. The requirements for home consump¬
tion will at the minimum be 5 per cent greater
than during normal times, owing to the greater
and heavier calls for coal for the manufacture
of munitions, and also to the heavier demand
by the railways owing to the increased ton¬
nage railed. Therefore, the quantity available
for export on ordinary commercial account,
without taking the increased requirements of
the admiralty, will be at the maximum about
30 to 35 per cent of the total production of
the coal field in normal times. To solve the
problem of how much Individual collieries
shall contribute to the home requirements
will be the most difficult point of the whole,
and in the endeavor to carry the scheme to
a successful issue the coal owners must, of ne¬
cessity, give details to their committee which,
in normal times, they would keep rigorously
to themselves. The coal owners must trust
each other and abide by the decision of their
committee; otherwise it will be impossible to
fix quota at which each colliery must be called
upon to give to home supplies under their
scheme. The government has the whip hand,
and any falling short in the supplies for home
use will surely be followed by the lopping off
of exports, to the great detriment of the
South Wales coal trade as a whole. The op¬
erations of the Westphalian Coal Syndicate
in its allotments for home use and for export¬
ing is an illustration of how such a matter
can be mutually and equitably arranged. The
South Wales coal owners are astute business
men, and there is every reason to believe that
their scheme will prove sufficiently successful
to convince the government, who will then
gladly release the shackles which are encum¬
bering one of the most important branches ot
trade in the kingdom.”
172
[August 28
THE BLACK DIAMOND.
News Local to Chicago.
John L. Pipe of Quincy, Illinois, spent sev¬
eral days in Chicago the first part of this
week.
Among the Chicago visitors this week was R.
J. O’Donnell of the John O’Donnell estate of
Kenosha, Wis.
Mr. Cunningham, secretary of the Western
Virginia Operators’ Association was in Chi¬
cago on Thursday of this week.
R. B. Hullhorst, resident salesman of C.
M. Moderwell & Company at Peoria, was in
Chicago this week. He was accompanied by
Mrs. Hullhorst.
Thomas Grant, the well known retailer of
Freeport, Illinois, and a leader of the trade in
his section, was in Chicago on Thursday of
this week.
R L Phelps, proprietor of the Windsor Park
Coal Company, No. 7454 South Shore avenue,
has disposed of the property to E. R. Sorensen
who will continue the business at the same ad¬
dress.
Mr. Henry, western manager of the West
Virginia Coal Company, with headquarters
in Cincinnati, was a caller on the coal trade
on Wednesday. He was celebrating the fact
that only recently his company had sold 50,-
000 tons to the Italian Government.
H. H. Stoek, professor of Mining Engin¬
eering of the University of Illinois, and an
authority on coal, was in Chicago on \Vednes-
day of this week, returning to the university
from a vacation trip spent in the northern
part of Wisconsin.
Two or three of the leading operators of
Franklin County field, announce this week,
that a new circular price on that coal will go into
effect on the first of September. The lump, egg,
and number one nut will be $1.75 and the num¬
ber two or special stove $1.40.
The old saying, “The better the day the better
the deed’’ has been exemplified again. Dr.
Beebe of the Buchanan Coal Company made 89
twice on Sunday last at the Evanston Golf Club
(bourse. The doctor was a bit skeptical as to his
form but now is full of assurance and willing
to challenge any man in Chicago— who never has
played the game.
Karl W. Block, assistant purchasing agent
of the Union Pacific Coal Company of Omaha,
v/as in Chicago the first three 'days of this
week. He was playing golf at the Glen Oak
Club. In the meanwhile, he was also look¬
ing after the interests of his coal company by
having several conferences of a business char¬
acter in the evenings.
W. C. Hill, vice-president of the Chicago
& Cartervilie Coal Company, usually issues
his new circulars on the 28th of the month.
The latter part of this week he was prepar¬
ing a new circular to go out on his William¬
son county coal, which will name a price at
$1.75 for lump, egg, and number one washed.
It is probable the other sizes will not be
subject to circular just now. Just what the
other Williamson county operators are going
to do has not been determined, although there
are suggestions that the price may go to $1.65.
Samuel Reynolds of the Allen & Reynolds
Company of Omaha, was in Chicago for three
days the early part of the week, playing golf
at the Glen Oak Club, where the National Coal
Tournament was held. At home Mr. Reyn¬
olds, who is something of an enthusiast on
golf has a tournament record of seventy-two
on the home grounds and in competition with
Mr. Gardner at Glen Oak made eighty and
seventy-nine on what is considered a very
difficult course. He recently played in the
Western Association Tournament at Cleve¬
land.
The Chicago coal trade was somewhat ex¬
cited this week, over a report that the recent
advance in freight rates had been suspended
until the first of April, 1916. A brief bulletin
sent out from Washington said that car-load
rates on coal and coke had been suspended.
The coal men instantly jumped at the con¬
clusion that an application of the interstate
rates had been held up. An inquiry proved
that this was not the case. On the contrary,
the Rock Island and the Alton railroads
had gotten into a controversy over the rates
from Winona, Ill., and the Rock Island has made
some changes. There was some protest against
this strictly local rate and the tariff was suspend¬
ed. This was what gave rise to the report just
outlined. In the meanwhile, the coal men are
expecting to hear at any time, that the railroads,
will ask the Railways and Warehouse Commission
of Illinois to grant an increase in intrastate rates.
It is hardly believed that seeing the granting of
an increase on interstate business that the coal
operators will make any serious objection to an
increase in intrastate rates.
“B. L. T.” in the Chicago Tribune has been
stealing some of the sporting editor’s stuff. He
asks : "At Glen Oak yesterday R. A. Gardner suc¬
cessfully defended his title of ‘champion of the
National Coal Trade Golf Association.’ Wonder
who is champion of the National Flour and Feed
Trade Golf Association?” Being a specialist in
only one industry The Bl.\ck Diamond cannot
oblige. However we will lay his favorite odds,
eight to five, that we could name the champion
golfer of the Amalgamated Association of
Wheeze-Founders without unduly mussing up
our statistical records.
Recess Taken in Ohio’s Rate Hearing.
Columbus, Ohio, August 25. — {Special Corre¬
spondence.) — In the Ohio coal railroad rate case
brought before the State Utilities Commission by
the United Mine Workers officials, a corps of
rate experts appointed by the commission are now
at work on the records of the Hocking Valley
Railway Company. The information thus se¬
cured will form the basis for testimony when
the hearing is resumed on October 5th.
Following the recess taken on the 18th inst.,
the commission named as examiners : Beman
Thomas, Conway W. Hillman, William J. Purdy,
W. J. Warren and William Wyand. Mr. Thomas
is head of the stock and bond bureau of the com¬
mission, and the others are members of the
staff of Mr. Hillman, expert employed in the
case by the Sunday Creek Company, which form¬
ally intervened in the action against the rail¬
roads on the 18th. Mr. Purdy, his chief assistant,
was formerly auditor of the Rock Island rail¬
road.
At the conference incident to the naming of
this force J. F. Wilson, chief counsel for the
Hocking Valley, raised objection on the ground
that it was not a disinterested body. The com¬
mission held that the fact of Mr. Thomas being
in charge of the work robbed the force of a
partisan nature, and was the best solution of
the matter, inasmuch as the commission had no
funds with which to employ its own experts.
The Sunday Creek Company is responsible for
the pay of the men, aside from the commission
official.
An expected legal effort to refuse the exam¬
iners access to the records when they presented
their credentials did not materialize. It is be¬
lieved, however, that the railroad will not allow
the examination to proceed to its close, or at
least permit the data to go before the commis¬
sion, without some form of contest.
There is still much speculation in coal circles
as to what other operators are backing the Sun¬
day Creek Company in the large outlay that
will accrue in prosecuting the case. The five
weeks’ services of the experts in taking data
and compiling the same into concrete evidence
will in itself run into thousands of dollars. It
is known that the operators of the state, and even
of the Hocking Valley, are not a unit in favor
of the present methods. One large Hocking
company which has heretofore been aggressive in
fighting rates, is holding aloof for the present,
at least, because it was believed that a state
organization of operators should have first been
effected, and the plans of the campaign well dis¬
cussed in advance.
On the other hand, it is known that some in¬
fluential coal interests throughout the State are
in practical sympathy with the movement now
under way. A prominent representative of the
Eastern Ohio field has been in Columbus this
week urging attendance upon a sub-rosa confer¬
ence of operators to be held in Cleveland with¬
in a few days to provide support for the fight.
What importance the whole matter will assume
when the hearing gets under way again in Octo¬
ber depends upon the character of the evidence
which the experts will be able to submit.* Should
it show a discrimination against Ohio coal be¬
yond the necessities of the case on the part of
the Hocking Valley railroad in preserving its own
life as a carrier, under conditions over which it
has no control, the prosecution is likely to be
severe, according to authorities in the matter.
Even in event that the railroad is .shown to be
a victim of competitive railroad conditions this is
not likely to save existing rates if this competi¬
tion is found to come from other Ohio railroads.
The latter development would the more quickly
involve all the railroads.
The temper of the commission, so far as can
be judged, is to thrash out the matter, since it
has been drawn into it, and dispose of coal rate
problems for a long time to come. As much was
intimated by Chairman Wildermire from the
bench, in stating that other important public
business had been side-tracked to give this case
right of way, and in announcing in effect that
unreasonable delays in the presenting of the
necessary evidence would not be tolerated.
Coal and Coke Movement.
The Department of Commerce, through the
bureau of foreign and domestic commerce at
Washington, has just issued a statement of the
movement of coal and coke over thirteen leading
Eastern railroads during May and the five
months ending May 31, 1914 and 1915 compared.
It is as follows :
Classes and May 5 mos. ending May 31.
railroads 1914 1915 1914 1915
Anthracite. Short tons. Short tons.
B. S: O. (a). ..
97,003
93,698
633,765
526,828
C. & 0. (a)..
1,270
1,367
6,224
4,990
Krie (b) ....
Penn, (a, c)..
Virginian (a, b)
787,238
1,022,077
683,542
972,995
145
3,642,083
4,799,030
52
3,420,471
4,580,414
342
Total, 5 roads.
1,907,588
1,751,747
9,081,154
8,533,045
Bituminous.
B. & 0. (a)..
2,488,515
2,723,221
13,716,728
11,730,282
B. R. &.P.(a, b)
460,455
633,175
3,309,135
3,012,400
B. & Sus. (a, b)
43,125
81,162
490,772
437,829
C. & 0. (a) . .
1,821,011
1,911,315
7,849,046
8,093,417
Erie (c) .
H. & B. T. M.
4,262
10,432
32,683
45,328
(a, b) ....
N. Y. C. & H.
59,043
71,376
466,219
393,776
R. (b) .
492,619
672,041
3,318,606
3,500,634
N. & W. (a, b)
2,338,672
2,434,614
10,200,365
10,047,876
Penn, (a, c) . .
3,543,218
3,393,328
19,657,638
16,597,074
P. & L. E. (a, b)
957,528
954,946
4,482,749
3,339,253
P. S. & N. (a, b)
152,807
152,640
1,016,809
899,733
Virginian (a,b)
359,879
307,006
1,706,539
1,596,739
W. Md .
187,228
266,763
1,301,792
1,344,024
Total, 13 roads.12,914,362
13,612,019
67,549,081
61,038,425
Coke.
B. & O. (a) . .
301,163
297,897
1,541,624
1,297,871
B. R. & P. (a, b)
21,175
33,662
118,397
166,803
B. & Snsq. {a,b)
8,643
49,259
129,509
244,213
C. & 0. (a)...
31,040
21,803
178,363
87,343
N. &.W (a, b).
88,145
79,270
492,747
366,766
Penn, (a, c) . .
817,816
872,181
4,434,422
4,008,443
P. & L. E. (a, b)
428,395
427,333
2,299,069
1,791,030
W. Md .
5,058
4,497
34,504
17,489
Total, 8 roads.
Total, coal and
1,701,435
1,785,902
9,228,635
7,979,958
coke, 13 roads.
January .
18,157.998
15,685.798
February .
15,446,830
13,702,789
March .
20,233,213
14,943,124
.'Xpril .
15,497,444
16,070,049
May .
16,523,385
17,149,668
Total, 5 mos. .
85,858,870
77,551,428
(a) Includes coal received from connecting lines, (b)
Includes company’s coal. (c) Does not include com¬
pany’s coal hauled free.
NOTE — The Southern Railway hauled 274,122 short
tons of bituminous coal during April, 1915, and 1,093,804
short tons during the four months ending April 30, 1915.
Philadelphia Exports.
Exportations of coal from Philadelphia
during the month of July, 1915, were as fol¬
lows :
France .
Italy .
■Spain .
Sweden .
Cuba .
Fr. W. Indies
Argentina . . .
Brazil .
Du. Guiana .
Fr. Africa. . .
Canada .
■Anthracite
Tons.
5,4.58
5,458
Bituminous
Tons.
28,253
9,441
35,747
6,975
50,045
4,651
7,753
20,263
805
3,388
167,321
Twelve new charters for foreign ports were
announced during the week through the Maritime
Exchange of New York. The west coast of Italy
is again taking a large quantity of coal.
No. 9]
THE BLACK DIAMOND
173
Facts Which Determine
Export Situation.
The export movement of American coal
over the Atlantic seaboard continues in
heavy volume. Last week saw . shipments of
147,917 tons from the Hampton Roads ports,
while Baltimore sent out 52,000 tons and
there were also fair shipments from Phila¬
delphia. The latter port is sending some
coal to Norway, with shipments also to
France and Italy. Italian requirements con¬
tinue heavy and a good portion of shipments
from both Hampton Roads and Baltimore
are for Italian destination.
The American shippers are watching very
closely the Welsh coal situation, both as to
the dissatisfaction of labor and the restric¬
tion placed upon exports by the government.
It is noted that shipments from Cardiff to
South American ports particularly have
shown very radical decreases during the past
several months, and it is believed that the
South American countries, in consequence of
the decrease and uncertainty of shipments
from Wales, will be compelled to place very
heavy orders for American coals in the very
near future.
Welsh Miners Strike.
New York, August 27. — (Special Telegram.) —
Ten thousand Welsh miners struck today in pro¬
test against decision of President Runciman of
Board of Trade in recent settlement matter.
The Welsh Coal Situation.
The latest advices from Cardiff, by mail,
which were just on the eve of the enforce¬
ment of the new English government re¬
stricting order on exports, show that there
was an unsettled feeling in the coal trade,
both buyers and sellers awaiting the result of
the visit of a deputation of coal men to the
Coal Exports Committee, in connection with
a scheme proposed by the coal operators un¬
der which they proposed to guarantee ade¬
quate supplies of coal for home consumption,
under the Limitation Prices Act, if restric¬
tions be removed in regard to exports to al¬
lied and neutral countries. It appears an im¬
portant deputation of Welsh coal operators
and shippers had gone to London to take
up this matter with the government commit¬
tee. There were further difficulties in the
exportation of steam coal because of the
shortage of prompt tonnage and the conse¬
quent sharp advance in freights which had
been a feature of the week, following upon
the diversion of a large number of steamers.
Coal stocks had grown steadily and there
was anxiety on the part of operators to avoid
accumulation that might result in a partial
stoppage of the collieries. They were, how¬
ever, upholding prices in hope that condi¬
tions would become more favorable. Due
Our Export Prospects
just before midnight indicates his decision is
likely to meet with vigorous opposition from
the miners.
The decision is highly technical, but a num¬
ber of the miners’ demands relating to work¬
ing conditions, hours of labor, and arbitra¬
tion arrangements, are rejected, although
wage concessions are made.
Vernon Hartshorn, the miners’ leader, tele¬
graphed from Cardiff:
“The Runciman settlement is impossible.
Even if the leaders accepted it, the workmen
who do not benefit by it would refuse it, and
they can tie up the whole field. Runciman
has taken away what David Lloyd George
and Arthur Henderson promised the miners,
and has brought about a dangerous crisis.’’
One of the principal disputed points was
whether any increase in wages granted at the
present time was to be regarded as merely a
war bonus or as a permanent adjustment.
Mr. Runciman decides that “the new agree¬
ment is applicable only to the abnormal con¬
ditions prevailing during the war and is not
intended for a precedent or to apply to nor¬
mal times.’’
On Wednesday, a newspaper cable read:
“The findings of Walter Runciman, presi¬
dent of the Board of Trade, who acted as ar¬
bitrator in the South Wales coal strike dis¬
pute, has been virtually rejected by the mine
workers. The executive committee, at a meet¬
ing yesterday, decided not to sign the award,
but to call a conference of representatives
of the entire coal field for next Tuesday to
consider objections to the award.’’
Recent Coal Freight Charters.
Str. Buxton (Br.). Baltimore or Virginia to Spezia or
Magdalena, coal, 39s fid, “Augnst-September.”
Str. Queenswood (Br.). Philadelphia to Rio Grande
du Sul Sulj, coal, 42s fid, “Prompt.”
Strs. lolo (Br.). Orthon Strathatos (Greek) and
North Pacific (Br.). Virginia to River Plata, coal, 33s 9d.
Str. Confield (Br.). Virginia to Rio Grande do Sul,
coal, 42s fid, “August-September.”
Str. Castlemoor (Br.). Baltimore to Alexandria, coal,
private terms.
Str. Stornmount (Br.). Philadelphia to Antilla, coal,
private terms.
Schr. Mary V. Neville. Philadelphia to Porto Rico,
coal, private terms.
Str. Franklin. Atlantic Range to Mediterranean, coal,
time charter; account Consolidation Coal Company.
Str. Greataston (Br.). Baltimore to Barcelona, coal,
private terms.
Str. Alf (Nor.). Baltimore to River Plata, coal, about
34s.
Str. Poiartsjernen (Dan.). Coal, Baltimore to Goth¬
enburg, private terms, “Spot.”
Str. Othon Stathatos (Greek). Coal, Baltimore to
River Plata, private terms, “Spot.”
Str. Claveresk (Br.). Coal, Baltimore to Felton, pri¬
vate terms, “Spot.”
Schr. Bayard Hopkins. Coal, Baltimore to Venezuela,
private terms, ‘Spot.”
Str. Teespool (Br.). Hampton Roads to Rio Janeiro,
coal, 94s fid, “Prompt.”
Str. Georgios (Gk.) Hampton Roads to Marseilles,
coal, 37s, “Sept.”
Str. Horflete (Br.). Baltimore to Spezia, coal, private
terms. ... r. x ■
Schr. Catherine W. (Br.). Philadelphia to St. John,
N. B., coal, private terms.
Exports for June.
The Department of Commerce, through
the Bureau of Foreign and Domestic Com¬
merce, has just issued a statement of the
exports of domestic coal and coke from the
United States, and bunker coal laden on ves¬
sels engaged in the foreign trade at the
specified districts, during the month of June,
1915. It follows:
DOMESTIC EXPORTS.
Coal. Coke.
Districts. Antharcite. Bituminous. Tons.
Tons. Tons.
Maine and New Hampshire..
1,613
1
Maryland .
305,917
8,010
Massachusetts .
52
New York .
20,685
4,201
644
Philadelphia .
5,387
121,379
61
Porto Rico .
60
Virginia .
85
608,599
6,642
Mobile .
20
290
New Orleans .
769
Arizona .
1,130
6,483
El Paso .
13,925
1,211
Laredo .
3,846
San Francisco .
31
Southern California .
i
24
Washington .
179
4,872
Buffalo .
109,658
124,367
32,600
Dakota .
795
2,082
154
Duluth and Superior .
20
1,850
27
Michigan .
27,597
6,299
Ohio .
10,(358
630,970
398
Rochester .
117,272
64,361
221
St. Lawrence .
85,680
21,723
903
Vermont .
1,310
109
103
Total .
352,636
1,933,410
68,628
BUNKER
COAL.
Districts.
Gross tons.
Maryland .
76,850
New York .
318,589
46,574
159,155
VTrginia .
BALTIMORE COAL EXPORTS.
For Week Ending Aug. 14, 1915.
Tons, Tons,
Cargo, Bunker.
8-10 Sp. Mar. Mediterraneo, Spain . 3,672 434
8-10 Ital. Mongineoro, Italy . 7,305 740
8-13 Nor. Lovland, Cuba . 3,506 350
8-14 Dan. Ribe, Brazil . 3,008 879
8*14 Br. Teviodale, Italy . 4,789 1,000
Totals . 22,527 3,403
For Week Ending Aug. 21, 1915.
8-16 Br. Castlemoor, Egypt . 4,999 1,300
8-16 Ital. Luigi, Italy . 4,659 900
8-18 Br. Rio Preto, Brazil . 5,142 1,261
8-18 Nor. Camilla, Panama . 3,123 410
8-20 Greek Calimeris, Italy . 5,602 776
8-20 Br. Harflete, Italy . 6,500 1,250
8-21 Br. Rocker, Egypt . 5,300 200
8-21 Dan. Polarstjormen, Sweden . 5,100 300
8-21 Br. Gretaston, Spain . 5,062 234
8-21 Nor. Alf, Argentina . 1,300 900
8-21 Br. Enterpe, France . 5,400 700
Totals . 52,194 8,231
EXPORT SHIPMENTS OF COAL FROM PHILA¬
DELPHIA.
Date. Vessel, Flag and Destination. Tons.
8- 5 Thelma, Nor., Ivigtut . 801
8- 6 Sif, Nor., Fort de France . 4,635
8- 7 Orkild, Nor., Havana . 3,835
8- 9 Glenmount, Br., Antilla . 2,631
8- 9 Rio Colorado, Nor., Rio Janeiro . 4,489
8- 9 Schr. H. A. Stone, Jabos, Porto Rico . 1,998
8-10 Mordland, Dan., Cardenas, Cuba . 1,906
8-12 Norbotten, Swed., Norvlk, Norway . 6,164
8-13 Bark Balmoral, Ital., Genoa . 8,861
8-13 Libertad, Mex., Guantanamo, Cuba . 978
8-13 Chiswick, Br., Havana . 4,745
8-13 Thorsa, Nor., Cardenas, Cuba . 1,476
8-14 Hercules, Span., Marseilles . 5,894
8-14 Petra, Nor., Port Limon, C. R . 3,105
8-19 Moldegaard, - , Antilla, Cuba . 4,127
to the very extraordinary circumstances it
was very difficult to fix prices. The govern¬
ment continues to take very heavy quanti¬
ties of the best grades of coal, but with pro¬
duction on more substantial scale, the sur¬
plus was heavier than for some time past.
The best second grades of Admiralty coals
were being retained for the government, or¬
dinary seconds being quoted at 28s to 30s;
other sorts, from 27s to 28s; Black Veins,
28s to 29s. There is a demand for patent
fuel, quotations ranging from 34s to 36s. Con¬
siderable pressure was being brought to get
forward shipments of patent fuel to France.
Some recent freight rates from Cardiff were
as follows:
To Algiers, 25fcs; to Genoa, 22s 6d; to Port
Said, 24s; to Rio, 23s; to River Plate, 23s; to
Marseilles, 22fcs; to Bordeaux, 18 fcs. Re¬
cent fixtures from the Tyne to Genoa were
made at 24s.
Welsh Labor Still Unsettled.
A London cable on Tuesday stated that
the decision of Walter Runciman, president
of the Board of Trade, who acted as arbi¬
trator on numerous disputed questions in the
South Wales coal strike, was announced last
evening. A dispatch received fr-^m Cardiff
8-17
8-17
8-lT
8-17
8-17
8-18
8-19
8-19
8-19
8-19
8-19
8-20
8-20
8-20
8-20
8-21
8-21
8-21
8-21
HAMPTON ROADS COAL EXPORTS.
Lambert’s Point.
British Steamship Kintail St. Vincent, C. V. I .
Italian Steamship Eliopoli Genoa, Italy..... .
Norwegian Steamship Ydun Kingston, Jamaica .
Norwegian Steamship Ocland Cristobal, C. Z .
Norwegian Steamship Antares Vera Cruze, Mexico .
Norwegian Steamship Mirjam Buenos Aires, A. R .
British Steamship N^ailsea Court Buenos Aires, A. R .
American Schooner Gen. E. S. Greeley Pernambuco, Brazil .
British Steamship Lexie Montevideo, Urugay .
Italian Steamship Italia Civita Vecchia, Italy .
Norwegian Steamship Ronald Montevideo, Urugay . .
British Steamship Don Arture Buenos Aires, A. R .
Greek Steamship Eugenia S. Embiricos Buenos Aires, ^ A. R .
Italian Steamship Phoebus Puerto Ferrajo, Italy .
Italian Steamship Luzon Cienoa, Italy... .
Norwegian Steamship Taunton Kingston, Jamaica .
Italian Bark Orealla Naples, Italy .
Italian Steamship Circe Italy, any port .
Italian Steamship Labor Savona, Italy .
.8-19 Italian Steamship Attualita
8-16 American Steamship Kanawha
8-16 Mexican Steamship Pueblo
8-17 Italian Steamship Tea
8-17 British Steamship Fairmouth
8-18 British Steamship Jersey City
8-19 British Steamship Lady Plymouth
8-19 British Steamship Penlee
8-20 British Steamship Camlake
8-21 British Steamship Oak Branch
8-21 British Steamship Teespool
8-21 British Steamship Zurichmoor
8-21 American Schooner Lucinda Sutton
S-21 American Steamship Winnebago
Total cargo, 146,917.
Total bunkers, 21,472.
Sewalls Point.
Spezia, Italy .
Newport News.
Port of Spain, Trinidad
Cardenas, Cuba .
Genoa, Italy .
Cienfuegos, Cuba .
Spezia, Italy .
Taranto, Italy .
Puerto Militar, A. R....
Spezia, Italy .
Montevideo, Urupay. . .
Rio de Janeiro, Brazil..
Tarento, Italy .
R'.*' de Janeiro, Brazil..
Rio de Janeiro, Brazil..
5,419
620
5,520
460
1,800
240
4,700
250
2,157
316
3,907
1,400
4,614
995
1,838
5,234
859
4,233
989
3,195
1,016
4,948
934
6,243
1,407
4,500
500
5,602
552
1,368
236
2,822
3,790
50(3
6,000
500
77,880
11,774
6,928
649
2,956
456
1,545
7,168
598
2,540
434
6,810
873
5,991
536
5,452
1,138
4,755
709
5,764
1,345
6,261
1,066
5,400
600
1,826
5,741 .
1,094
62,109
9,049
174
THE BLACK DIAMOND
[August 28
General Review.
Buying Is Heavier Because of the Sea¬
son, But Price Advances
Come Slowly.
In all parts of the country the buying of do¬
mestic coal has improved within the last week.
In some places the retailers took coal in order to
anticipate either the rise in price or an increase
in freight rates. Much of the buying was there¬
fore of a precautionary nature, but some of it
was in response to immediate demand by the
consumers.
For one thing, the farmers who moved their
crops to market very late this year have begun to
buy coal. For another thing, the householders
who have not purchased all summer are, owing
to the cool days and nights, finding a fire is a
necessity.
The steam trade is not improving as much as
it might, because factories are not running any¬
where near full time. There is going to be some
late movement of coal up the lakes that will take
up part of the mine output at the time the retail¬
ers are taking their coal. Also, there is going to
be quite a heavy movement of coal to tidewater,
as the foreign orders are increasing and prices
there are becoming attractive.
One of the big developments of the week is
the improvement in the coke trade. This has
been under way for some weeks now, but it really
reached a phenomenal stage of development with¬
in the last week or two.
The New York report is in a sense representa¬
tive of the east. It says that there is quite an
improvement in anthracite, but candidly the up¬
turn is not as sharp as might have been expected
under the circumstances. The retailers are not
buying as much as they should, the lack of sum¬
mer storage coal being considered. Also, they
are not buying as heavily as would be indicated by
a shortage in anthracite production up to the first
of August. However, the buying movement has
started. In bituminous coal there has been some
little improvement, but the steam trade does not
seem to be concerned much over the future.
This report is confirmed, in a measure, by an¬
other coming from New England. Boston has
assumed new importance of late because of in¬
creased manufacturing in that center and because
of a general awakening of manufacturing inter¬
ests all through New England. Still the trade
does not show the improvement that it should.
Baltimore, on the contrary, is quite optimistic,
being made so first by the off-shore movement of
coal and, second, by a demand in domestic chan¬
nels reached through that port.
Pittsburgh is, to a certain extent, representative
of western Pennsylvania and Ohio, but in a sense
it is not. In that territory there is quite a de¬
mand for coal from the coke ovens and the steel
mills. In fact, wherever there is a chance for
local industry to sell anything abroad there is a
good business in coal, but the movement to all
rail points is backward and the move up the
lake certainly is nothing like it is normally.
Cincinnati strikes quite a different keynote. In
the first place it indicates that there is a car
shortage and in the second place it speaks for a
better demand for both steam and domestic coal.
In one respect, however, Cincinnati differs from
Pittsburgh in that it is representative of West
Virginia rather than western Pennsylvania coal
conditions.
In the northern tier of cities, including Detroit,
Toledo and others, the situation is improving
slowly, because the operators no longer keep the
market crowded with consignment coal, and be¬
cause the demand is improving.
In the west, Chicago is representative of quite
a big district. There the retailers are beginning
to buy coal because the householders are signify¬
ing a demand. In response to general conditions
the operators are increasing their price. Thus
the first of September sees on bituminous coals a
rise in price averaging about fifteen cents a ton.
St. Louis confirms, in a sense, this report from
Chicago. Most of the mines in that district are
running about full time. The local demand has
caused some of the mines in the three southern
Illinois counties to do far better than fifty per
cent of capacity which they have been doing here¬
tofore.
In the northwest there is an indication that the
market is improving steadily, as is shown by the
fact that some orders for West Virgina coal have
been placed just recently. Also it is interesting to
note that some Ohio operators, who had expected
to remain out of the market, are planning now to
ship quite a good deal of coal up the lakes.
Chicago Market.
Domestic Bu5ring Is Heavier and Prices
May Advance Next Week.
Coke Stronger.
Office of The Black Diamond,
Chicago, August 26, 1915.
This morning the suburbanites who gath¬
ered at their stations to await the trains were
for the first time talking about coal. They
had abandoned discussions of golf, tennis,
fighting mosquitoes, the rainy weather and
its influence on vegetation and vacation
plans. Most of them were back on the job
for the fall and were talking about the kind
of coal they are going to use this winter and
what changes they expect to make over what
they did last year.
This situation explains the one big change
in the coal market for this week. The house¬
holders are not only talking about coal, but
are buying it. The first movement to stock
up for the winter has begun. As the house¬
holder buys, naturally the retailer must do so,
and this reacts upon the wholesale trade to
increase production of domestic coal. The
situation all told is much more encouraging
than it has been and warrants advances in
prices which some operators are planning to
make the first of September.
The steam coal situation is not changed
much. A slight increase in the production of
screenings naturally eases the price there and
except for high-grade coal, the market is for
5 cents a ton or more off.
The anthracite trade has shown some little
improvement. That is, the retailers are begin¬
ning to get orders from the house-holders
and are buying more coal from the whole¬
saler. The increase is not heavy enough yet
to warrant any larger shipments or to war¬
rant any speculations on the absorptive capa¬
city of this market. However, some more
business is being done.
Smokeless market is strengthening, but as
the first of September approaches, some con¬
cessions were made on track coal and even on
spot coal, about the middle of the month, but
mine run for September delivery is firm both
on track and on spot at the new circular price
of $1.40. The lump and egg situation is not
quite so strong. It is known that coke ovens in
the east are running now to full capacity. This
is taking much more slack coal than has been
the case heretofore. As the operators in¬
crease their production of fine coal, they must
necessarily increase their output of lump.
They are having, therefore, an unexpected
volume of coal, but have not enough orders
to place all of it, therefore they are now
soliciting business on prepared sizes, a situa¬
tion which has not confronted them for two
years. The prices up to Thursday were:
F. O. B. F. O. B.
Smokeless — ■ Chicago. Mines.
Mine run . $3.30@3.45 $1.25@1.40
Lump and egg . 4.30 2.25
Somerset County coal is a little stronger
than what it was. The mine run will ad¬
vance to $1.40 on the first of September and
some operators will hold for $2.00 as a mini¬
mum on lump and egg. The prices up to
Thursday were:
F. p. B. F. p. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@4.15 1.75@2.10
It is barely possible that Hocking operators
will advance their prices on September 1 to
$1.60. The harvest demand has been in full
swing for the last week or so and orders have
increased materially. The prices have been
firm at circular. The market up to Thursday
was:
F. O. B. F. O. B.
Hocking — Chicago. Mines.
154-inch lump . $3.15 $1.50
Splint coal is still a little easy. Some low-
priced orders are being forwarded to the
mines and are being accepted. However, a
change is in sight for the immediate future.
The mines have orders for lake coal and these
will keep them busy for the next three months.
The tendency is towards higher figures, but
in the meanwhile, the prices up to Thursday
were:
F. p. B. F. p. B.
Kanawha — Chicago. Mines.
lJ4-inch ’ump . $3.05@3.15 $1.15@1.25
Several things are improving the situation
on Eastern Kentucky coal. There is open de¬
mand in the south and there is some improve¬
ment in the demand in the west. The mini¬
mum prices have been moved up at least 15
cents a ton and another advance is likely on
the first of September. In the meanwhile,
the prices up to Thursday were:
F. O. B. F. O. B.
Eastern Kentucky— Chicago. Mines.
Domestic lump . $3.40@3.80 $1.50@1.90
Egg . 3.25 1.35
Franklin county prices will be marked up
to $1.75 a ton on September 1 for the lump,
egg and No. 1 nut. The special stove will
not be changed at $1.40. The smaller sizes
are not expected to increase in strength be¬
cause the steam demand is nothing extraordi¬
nary. The prospect of this advance and of
the increase in freight rates have given busi¬
ness a sharp upturn within the last week and
many of the mines are so filled with orders,
they will be running several days after the
first of September on current business. This
last week orders have been refused at the
cost price because to accept them would en¬
tail delivery in September. The screenings
are off from five to ten cents a ton. The
prices up to Thursday were:
Franklin County
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2-inch screenings
F. O. B.
Chicago.
$2.65
2.65
2.65
2.45
2.15
1.70@1.75
F. p. B.
Mines.
$1.60
1.60
1.60
1.40
1.10
.65@.70
One Williamson county operator will ad¬
vance the prices on September first to $1.75.
The others are sure to make an increase to
$1.60 if not to $1.65. In anticipation of this
advance prepared sizes have been strong
but the steam sizes have been easy. The
prices up to Thursday were:
Williamson County —
Lump .
Eg? .
No. 1 washed .
No. 2 washed .
F. O. B. F. O. B.
Chicago. Mines.
$2.65 $1.60
2.65 1.60
2.65 1.60
2.50 1.45
Saline county operators have not put out
any new circular prices for September, but
the prices are expected to advance to $1.65
at least. The market in anticipation of a
price advance and of an increase of freight
rates has been strong, with an exception of
screenings, which has been off by a nickle
a ton. The prices up to Thursday were:
Saline County —
Lump .
Mine run .
Screenings .
154 -inch lump...
F. 0. B.
F. 0. B.
Chicago.
Mines.
$2.55
$1.50
2.15
1.10
1.75
.70
2.30
1.25
Clinton operators are beginning to get a
better demand for domestic coal, but their
specialty is still
the
same business.
Prices
there are expected to
advance ten cents a ton
on the first of
Thursday were:
September. Prices
F. O. B.
up to
F. O. B.
Clinton —
Chicago.
Mines.
Domestic lump .
. $2.27
$1.50
Egg .
. 2.07
1.36
Nut .
. 2.07
1.30
Mine run .
1.10
Screenings .
.75
Springfield operators will advance their
prices on September first to $1.65. The busi¬
ness both in steam and domestic coal has
been stronger this week. Screenings have
been off about five cents a ton and soft even
at sixty cents. The prices up to Thursday
were:
Springfield —
Lump .
Egg .
Nut .
Mine run.
Screenings
F. O. B.
F. 0. B.
Chicago.
Mines.
$2.32
$1.50
2.32
1.50
2.17
1.35
1.87
1.05
1.42
.60
Knox county operators are running mainly
on steam coal, with screenings still ranging
around eighty cents a ton regardless of the
general savings in fine coal market in other
directions. There is not much demand in
other sizes. The prices up to Thursday were:
F. O. B. F. O. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . . 2.37 1.50
Mine run . 1-87 1.05
Screenings . 1-67 .80
With the approach of September first coke
prices have been marked up from ten to fif¬
teen cents a ton. The demand is stronger
for all sizes and the big feature is the market
on furnace and foundry. The prices up to
Thursday were: f O B
Coke _ Chicago.
Connellsville .
By-product, foundry .
By-product, egg and stove . L7.6
By-product, nut .
gIs house . 3.85@4.00
No. 9]
THE BLACK DIAMOND
175
Pittsburgh Trade.
Dull Business to Line Points and the
Lakes Offsets a Good Steel
Mill Demand.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., August 26.
The dullest week of the dullest month of
the year is being experienced in the coal trade
just now, so far as any visible activity or
movement of coal is concerned, but notwith¬
standing the vacation season and the long-
continued watchful waiting that tends to give
the situation a stagnant appearance, there is
a strong undercurrent that is being felt and
that will soon disturb the calm of the sur¬
face. Not within months has there been the
decided feeling that “things will take a turn”
that is seen today; in fact, the optimists of
the past months say today “it has come,” nor
do they say it in a doubtful, hesitating man¬
ner. The writer was shown correspondence
today by selling agents, from their sources of
supply in Connellsville and Greensburgh re¬
gions, that said “take more orders on” such
and such coals at present prices, “advance
prices” on such and such to $ - , and with
these instructions were seen quotations for
screenings for immediate delivery, and for
the three months to come, that would aver¬
age 72^ cents per ton, this against the 55 to
60-cent prices that have ruled the market for
some time.
At some mines it is reported that while
not working full, their present capacity is ab¬
sorbed on contract deliveries and they do
not want To increase outputs at present
prices.
One larger producer, whose contracts have
kept operations active, said they would soon
be in the market themselves for coal at the
present rate of inquiry, export business in
other districts throwing interior trade into
this section to an extent that will demand
the entire surplus output of this district as
fall domestic tradj opens up. Railroad buy¬
ing is a feature, and it is intimated that coal
is being stored on speculation, it being an¬
ticipated that later on, the demand cannot be
met, and that prices will soar.
The labor question is again being con¬
sidered, and the fact that miners have been
going from this district to West Virginia and
Kentucky causes some slight alarm. The
first intimation of “car shortage” developed
the past week, when gondolas were found un¬
obtainable in certain districts.
Much complaint is heard in Pittsburgh re¬
garding freight rates, the Fairmont, Kanawha
and other districts having such a decided ad¬
vantage over this section that it is next to
impossible for Pittsburgh to compete for cer¬
tain lake trade, and although this trade has
been and is exceptionally light, the odds are
against the Pittsburgh operator.
Prices are hardly quotable today, though
the tendency is toward a higher plane. Slack
is held generally at sixty cents for spot, and
scarce, while eighty and eighty-five cents is
talked of as to contract for the last quarter.
Mine run can be bought at from $1.00 to
$1.10, with 3/4 at $1.15 to $1.25 and 5/4
screened coal at $1.30 to $1.40 f. o. b. Pitts¬
burgh, and while some are quoting higher
figures than the foregoing, even these can
still be shaded for spot delivery.
The coke market seems stronger, if any
change can be noted. A number of furnaces
are expected to blow in at almost any time
and some considerable inquiry has been out,
but no definite contracting to any large ex¬
tent heard of. These furnaces are simply
holding off until they see a little more cer¬
tainty as to continued activity, rather than
start on present demand and then blow out
again shortly. The demand today for pig
seems to have weakened, though the ad¬
vances made the past ten days in price is
maintained. Foundry coke has improved
slightly in demand, and prices holding as near
the following as can be quoted:
Prompt furnace . $1.50@1.60
Sept, furnace . 1.60@1.75
Contract last quarter . 1.80@2.00
Foundry — spot . 2.40@2.50
Foundry contract . 2.50@2.65
The surplus tonnage of furnace coke that
unexpectedly developed immediately after
the Fourth of July seems to be exhausted,
and so far as causing any interference in the
market was concerned the quantity was not
sufficiently large to create anything but a
temporary flurry, which has seemingly
passed.
Options on 1,300 acres of coal lands, in¬
cluding the greater part of the unsold coal
lands of Luzerne township, Fayette county,
were closed last week for $2,500,000 by Pitts¬
burgh interests. The option will expire on
September 10.
The coal optioned is surrounded by some
of the largest coal and coke interests. It is
bounded on the north by the holdings of the
W. J. Rainey Coal & Coke Company, on the
northeast by the acreage of the Republic
Iron & Steel Company, on the east by the
land of Tower Hill Coal & Coke Company,
on the south by the holdings of the j. V.
Thompson Coal & Coke Company and on the
west by the H. C. Frick Company’s prop¬
erty.
The parties handling the deal have not
made public the names of the Pittsburghers
interested, but the properties are owned at
the present by ten. or twelve different parties.
Pittsburgh News Items.
Mineral rights under forty-eight acres and the
surface of three acres have been purchased
by E. E. Miller, of Rockwood, Pa., from Da¬
vid Ansel. A new tipple, storage house and
steel tracks are to be installed. A mine on
the tract has been worked for several years.
The Capitol Coal Company has been in¬
corporated for the purpose of mining for
coal in Brooks county, W. Va., but has its
principal offices in Pittsburgh. The capital
stock is $250,000. The names of the incor¬
porators are W. J. C. Hays, W. J. Birming¬
ham, William E. Hays, H. W. Breitweiser
and A. M. Lowe.
A memorial of the late Dr. Joseph A.
Holmes, director of the United States Bureau
of Mines, will be erected when the new bu¬
reau buildings are constructed in Schenley
Park, according to the announcement made
yesterday by Lauson Stone, superintendent
of the Pittsburgh district of the bureau. The
American Society of Mining Engineers has
appointed a committee to publish a biogra¬
phy of Dr. Holmes.
With a guarantee of work for next autumn
and winter, a call for fifty unmarried miners
has been received by the local office of the
distribution branch of the United States bu¬
reau of immigration from a coal company in
the Latrobe district. The company also guar¬
antees good wages and working conditions.
It wants only unmarried men, as all the com¬
pany houses have been taken by married
men. Miners are also wanted by other com¬
panies in Fayette and Westmoreland coun¬
ties.
The plant of the Four States Coal Com¬
pany has been closed down at Annabelle, W.
Va. The miners’ houses are being nailed up
and a general suspension of business has
been instituted. For several months the
property at Annabelle and a mining property
owned by the same company at Dorthy in
Raleigh county, has been operated by the
trustees. Two mortgages, one for $3,500,000,
another for $1,000,000, were placed on the
properties at Annabelle and in the south¬
ern part of the state. Notes began to come
due several months ago. The bondholders
ordered the trustees to dispose of the prop¬
erty then. Judge Dayton of the Federal
Court in this district refused to allow the
sale to proceed. The action of the trustees
in closing down the plant, it is said, is a
move to hasten the sale of the holdings.
St. Louis Trade.
St. Louis, Mo., August 26. — {Special Corre¬
spondence.)- — At the nearing of the fall season
the coal market on all domestic sizes continues to
improve. Mines in Southern Illinois on the whole
are running almost full time, and those in the
central district are running more continuously.
One of the peculiar features of the market is
that screenings, instead of dropping, have rallied
in price in the last ten days, and on the whole
are much firmer, bringing better prices than they
were around the first of the month. Standard
coal is moving fairly well and current prices are
good.
F. O. B.
Standard Coal Mine.
6-inch lump . $1.20
6x3-inch egg . 1.00
2-inch lump . 1.00
Steam egg . 80
No. 1 nut . 90
No. 2 nut . 80
Mine run . 85
Screenings . 60
F. O. B.
St. Louis.
$1.77}4
1.57'4
1.57J4
1.37J4
1.47J4
1.37H
. 1.42}4
1.17J4
Mount Olive coals are moving fairly well and
prices are as follows :
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.40 $1.97}4
2-inch lump . 1.20 1.77;4
Screenings . 60 1.17J4
Williamson County coals are moving very well
indeed, though there is quite a range in prices.
Domestic sizes being quoted all the way from
$1.30 to $1.60 at the mines, the average prices
being about as follows :
F. O. B,
Mine.
6-inch lump or egg . $1.50
3x2-inch nut . 1.20
Screenings . 60
F. O. B.
St. Louis.
$2.22^
1.9254
1.32)54
The movement of Franklin County coals is
all that could be desired. The mines are run¬
ning practically full, and they are getting their
prices. In fact a great many of the mines are
now three weeks and more behind their orders
on certain sizes.
F. O. B.
Mine.
6-inch lump, egg, or nut . $1.60
No. 2 stove . 1.40
Screenings . 70
F. O. B.
St. Louis
$2.3254
2.1254
1.4214
Anthracite is moving fairly well through the
country, but the local demand has been very
light. Smokeless is also in seasonable demand.
Anthracite — ■
F. O. B.St. Louis.
Chestnut . $7.45
Stove or egg . 7.20
Grate . 6.95
F. O. B. F. O. B.
Smokeless — - Mine. St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis
Gas house coke . $4.25
By-product coke (all sizes) . $4.50
The prices on Illinois soft coal f. o. b. East
St. Louis, Madison, Venice, or Granite City,
Ill., are 25;4 cents lower than the above quoted
St. Louis prices.
Omaha Trade.
Omaha, Nebr., August 26. — {Special Corre¬
spondence.) — -There is scarcely any change in this
territory during the past week, general busi¬
ness conditions being more or less at a stand¬
still.
There has been a slight increase in the de¬
mand for domestic coals, the dealers apparently
realizing they have
got to come to
it sooner
or later.
The following prices prevail on coal
Southern Kansas —
Mines.
Omaha.
Nut .
. $1.85
$3.20
Slack .
. 1.35
2.70
Franklin County —
Lump .
. 1.45@1.60
3.75@4.00
Egg .
. 1.45@1.60
3.75@4.00
Nut .
. 1.45@1.60
3.75@4.00
Williamson County —
Lump .
. 1.25@1.35
3.65@3.75
Egg .
. 1.25@1.35
3.65®3.75
Rock Springs —
Lump .
. 2.15
6.85
Nut .
. 1.60
5.35
Arkansas Anthracite —
Lump .
. 3.70
6.60
Broken sizes .
. 3.95
6.85
Omaha Local News.
E. D. Scott, western sales agent of the Skeele
Coal Company, was in Omaha this week. Scott,
as usual, is able to see the bright side of every¬
thing and is looking for a good business this
fall.
Among the Omaha visitors this week was F.
M. Vaughn of the Victor American Fuel Com¬
pany of Denver. While Mr. Vaughn was opti¬
mistic as to the future he stated that the western
territory had been having about the same ex¬
perience that we have had here.
The Omaha jobbers will entertain a number of
the prominent railroad officials at lunch Thurs¬
day, August 26. The idea of the meeting being,
in addition to bringing about a better fellow¬
ship, to iron out a few of their general disagree¬
ments on claims, etc. Among those expected
to be present are : W. A. Holley, J. W. Newell,
H. H. Holcomb, C. L. Birch, of the Burlington ;
H. A. Bierman of the “Katy,” H. C. Fribble of
the Santa Fe, W. P. Hawkins of the Missouri
Pacific and B. D. Daley of the Kansas City South¬
ern,
176
THE BLACK DIAMOND
[August 28
Cincinnati Trade.
An Improvement in Coke Makes a Better
Demand for Slack, Increasing
Supply of Lump.
Cincinnati, Ohio, August 26. — (Special Cor¬
respondence.) — The main feature of the trade,
this week, was the slowly developing car shortage
in the West Virginia fields together with the good
improvement in the demand for smokeless slack
for by-product manufacture. This week for the
first time in the month, there is also developing
a good demand for smokeless lump and egg in
the domestic market which demand was also
spreading to the splint market toward the latter
part of the week. This domestic demand is be¬
lieved to have been stimulated by the cool
weather of the previous week, together with a
belief that is forming in the minds of the buyers
and their patrons that fall and winter will de¬
velop much earlier this year than usual.
The coke market is splendid and is said by old
operators and manufacturers of coke, to be the
best in four years with a brisk demand, accelerat¬
ing almost daily, and with rising prices. Cincinn-
nati coal men characterize it as an “old time
market” in that product. The condition in the
iron market makes it better for the coal man of
this district and most of the dealers are opti¬
mistic. Prices are not much affected yet in
splint and the smokeless operators have been
able to hold their prices except in a few isolated
cases. The end of the week sees contracts closed
which have been hanging fire for some weeks,
and it also sees a brisk flow of orders for Sep¬
tember delivery. A peculiar thing is that few
orders for immediate delivery have been booked
by the companies, since August 1. Many can¬
cellations and suspensions have been received by
the splint operators and some by the smokeless
operators, which were given m July in expecta¬
tion that the market would stiffen early in Au.gust.
Seeing that this was not so pronounced the buy¬
ers cancelled or suspended orders and as a result
they will pay September prices when they do
order their goods.
Some of the splint operators are notifying their
patrons that with September 1 their prices will
go up and they will not protect quotations al¬
ready made, or made prior to that date. This is
quickening orders in some fields. The prices be¬
lieved probable by some West Virginia operators
are : Run of mine, ninety cents to $1 ; gas, ordi¬
nary eighty to eighty-five cents, fancy ninety-five ;
nut and slack, spot fifty-five, contract seventy-five
and eighty cents while lower grades are quoted at
seventy for that date. In the domestic, good two-
inch lump is booked for $1.25 and 4-inch, $1.50
to $1.60. This is about an average for the general
West Virginia splint market. In another field
September prices are quoted as follows : Four-
inch lump, $1.75; two-inch, $1.40; egg, $1.10; run
of mine ninety cents ; nut and slack sixty-five.
Kentucky operators expect to run the following
prices which are prevalent now, with about ten
cents added after September 1 : Block, $1.60 to
$1.75; egg, $1.25; run of mine seventy-five cents
to ninety cents ; nut, $1 to $1.10 ; and nut and
slack fifty to seventy cents. Smokeless will still
hold to $2.25 for lump and egg, run of mine $1.40,
and nut and slack $1. These prices are a con¬
densation of prices given by several operations
in the splint.
The car shortage is hooted at by railroads but
operators say it is a fact and some mines have
had to close down one or two days this week
because of a lack of cars. It is believed that cars
have been delayed at coal terminals, and dis¬
tributed to grain centers in such numbers that
they have thus created a shortage. Good judges
nrcdict that within thirty days the shortage will
be so pronounced that it will cut the volume of
delivery to half its present size. The beet sugar
factories will eat into the supply, also, in a few
days and other factors are working on the already
short supply. Labor shortage will develop as
soon as the domestic demand reaches a some¬
what larger tonnage.
Operators are saying this week that they be¬
gin to see daylight, and higher prices are looming
up over the horizon line.
Cincinnati Trade News.
E. F. Bardin of the Wyatt Coal Company, is
in the East this week looking over the export
situation as well as other matters for his com-
liany.
Local coal operators and shippers are being
notified by the Monongahela Railroad that this
road will begin service transporting freight, Sep¬
tember 1st. The road was formerly the Buchan¬
an & Northern Railway.
C. B. Ebbert, of Chicago, western manager of
the White Oak Coal Company, was in the city
this week in conference with the local office
on matters pertaining to the local fall campaign.
Quinn Morton, president of the Imperial Coal
Sales Company, of this city and the Imperial
Coal Company of Burnwell, W. Va., stopped off
a few fours this week as he passed through the
city from Detroit to the mines at Burnwell.
G. L. Drouillard, a well known coal traveling
salesman in this territory for a number of years,
has entered the employ of the Webb Fuel Com¬
pany, traveling in Michigan and Northern Indi¬
ana. Mr. Drouillard was formerly with the Paint
Creek Collieries Company, and was with the
Webb Fuel Company once before.
A new rumor arose this week relative to the
attempt of the Island Creek Coal Company, or
rather the United States Oil & Coal Company,
to take over the Wyatt CoalCompany holdings, op¬
erated by the Main Island Creek Coal Company.
The new rumor had it that the option which
lapsed August K), had been renewed to date
September 10. Local officials of the company
say that there is not a shadow of basis for the
report, so far as they know. The announcement
of the failure of negotiations stands and the
company is making more large contracts every
week. In addition export demand is rising for
the coal and contracts are pending of consider¬
able size with foreign buyers.
Edward Schoenebaum of Cincinnati and Ray¬
mond City, W. Va., has been chosen by Governor
Hatfield of West Virginia to represent the state
at the eighteenth annual convention of the Amer¬
ican Mining Congress, which, this year, will be
held in San Francisco September 20 to 23, in¬
clusive. Mr. Schoenebaum is treasurer and gen¬
eral manager of the Marmet-Halm Coal & Coke
Company, and also of the Raymond City
Coal Mining & Coke Company, and is
well known in the coal business of the
state of West Virginia and to dealers
throughout the middle west. The state will have
ten delegates, the other nine being George T.
Watson, Fairmont; W. H. Koch, Wheeling;
A. J. King, Charleston; Edward O’Toole, Gary;
E. E. White, Glen White; Clyde Hutchinson,
Fairmont; James Elwood Jones, Switchback;
George S. Patterson of Vivian and R. P. Maloney
of Thomas.
The coal contract for St. Bernard village, a
suburb of Cincinnati, was finally awarded this week
to the B. H. Wess Coal & Coke Co., of Winton
Place, also a suburb. The contract was about
to be awarded, July 31, according to several
participants in the bidding, to Fred Krehe, son
of the treasurer of the village, who was also
a member of the commission which awarded the
contract. It was not understood at the time that
Mr. Krehe, Jr., was representing a Cincinnati
coal omce, it being believed he was representing
his father, who, according to the laws of Ohio
was barred from bidding or participating in any
of the profits of the award by reason of the
fact that he was a public officer in the village
ordering the coal. The bid was $1.80 per ton
also for the 3,600 tons to be under contract.
There were eight bidders under that figure, of
which the lowest was $1.59 per ton. Mr. Wess’
bid was $1.64 and the award was made to him
at that figure, the bid of Mr. Krehe, Jr., being
eliminated.
The annual convention of the National Com¬
missary Managers Association of which Tracy
D. Luccock of Chicago is secretary-treasurer and
F. M. Meadows of Pineville, Ky., is president,
was held here this week and proved one of the
best and most successful conventions of the
seven that have been held by the organization.
About 500 delegates were present and the entire
second floor of the Gibson Hotel was occupied
by exhibits of merchandise. Gus Lee of the Ten-
nesee Coal & Iron Company is mentioned as the
gre '.test buyer of the entire convention, having
to purchase in the neighborhood of $3,000,000
annually for the company. F. C. Clifford of
Chicap'o was one of the speakers at the conven¬
tion. The first session of the convention was
held at Chester Park, Monday evening, the con¬
vention being entertained by the Cincinnati en¬
tertainment committee in which a dinner and a
cabaret oerformance were the features. The
first business session was held next day and
in it, after the convention had been welcomed
by Mayor Spiegel of Cincinnati, and S. K.
Mayer, chairman of the entertainment committee
of the business men of the city, and suitable
responses had been made, Anderson Pace of Chi¬
cago spoke on “Personality in Business.” Mr.
Gifford delivered his address Tuesday afternoon
on “How the Commissary Manager May Help the
Operating Company.” The convention was well
attended and was a source of great benefit to
all the delegates and their companies.
Denver Trade.
Denver, Augu.st 26. — (Special Correspondence.)
There is little life to the coal market this
week, and conditions remain practically un¬
changed. There has been no rush of country
dealers to deluge operators and distributors
with storage orders at the end of the season,
as was expected. Dealers generally are said
to be fairly well supplied for a little time to
come, and are not worrying about the future.
This supply has, in most cases, been ample
for every requirement, including threshing.
Lignite production is at a low level this
week, and the bituminous output has fallen
off in comparison with that of last week.
Trinidad and Routt districts are running full
time and are leading the state in production.
Cold nights and abundant rains have in¬
creased the slack demand, and prices have
stiffened a little in consequence. Lignite sup¬
ply is light, but there is plenty of bituminous
for all needs.
Prices for lignite, f. o. b. mines are as fol¬
lows: Denver delivery, lump, $2.35 to $2.65;
mine-run, $1.50 to $1.65; slack, $1.05 to $1.25.
Points outside of Denver, lump, $2.50; mine-
run, $1.55 to $1.65; slack, $1.05.
Canon City District —
For shipment May and June .
For shipment July and August . 2.75
Add 25 cents to above prices for washed nut.
Walsenburg District —
For shipment May and June . 2.50
For shipment July and August . 2.75
Washed nut 25 cents per ton additional.
Chestnut, $1.25 for entire season.
Trinidad Distri.;t —
For shipment May and June . 2.00
For shipment July and August . 2.00
Routt County District —
For shipment May and June . 2.60
For shipment July and August . 2.75
Western Slope District —
For shipment May and June . 2.25
For shipment July and August . 2.60
From Baldwin, shipments for points east of Denvel
are 75 cents per ton less than Walsenburg prices.
Lump
Nut
.$2.50
$2.00
. 2.75
2.25
:hed nut.
. 2.50
2.00
. 2.75
2.25
lal.
. 2.00
1.71
. 2.00
1.7$
, 2.60
2.01
. 2.75
2.21
. 2.25
. 2.60
....
Local coal operators and wholesale dealers are
very much interested in news which developed
this week relative to a deal that has been pending
here conducted by Pittsburgh and Chicago brok¬
ers covering the purchase of about 100 acres
in the outskirts of the city at Madisonville, for
the purpose of establishing a subsidiary plant
to the Bethlehem Steel Company’s plants else¬
where. G. S. Ellis of Chicago is one of the
interested real estate dealers and Thomas A.
Nugent and G. M. Hartupee of Pittsburgh are
the others. The Pennsylvania Railroad ^..om-
pany is reported to have options on about forty
acres nearby and will handle the output and
inshipments in its yards, besides constructing-
shops there also. It is reported that the Dethle-
hem Steel Company will not operate the new
plant but that it will participate in the organiza¬
tion of a subsidiary company to be managed by
Pittsburgh capital which will take hold of it and
aid in the manufacture of war supplies and ma¬
terials on contracts held by the Bethlehem Com¬
pany. The interest by coal operators and pro¬
ducers is that of finding a near market for their
coal products.
Denver News Briefs.
A test case involving the right of the state
to collect royalties, which it is estimated, will
amount to more than a half million dollars,
has been filed by N. S. Walpole, owner of a
quarter section of state land in Routt county.
He asks an injunction against the state land
board from granting to George Morrison a
five-year mineral lease upon his land with the
right to mine coal. Since Walpole acquired
the tract a big vein of anthracite, probably
six to eight feet thick, has been discovered,
and as the state gets a royalty of ten cents
for every ton of coal mined, it is estimated
that the school fund would receive about
$500,000 if the clause, which is included in
every sale certificate, that the state reserves
all mineral rights is upheld in the courts.
The surface value of the land is only about
$16,000. The suit which Walpole has in¬
stituted to prevent Morrison from mining on
his land will test the right of the state to
reserve mineral rights in making a sale of
land and to grant a lease to an outsider to
excavate or bore on the land of the purchaser.
No. 9]
THE BLACK DIAMOND
177
Duluth Trade.
Duluth, Minn., August 26. — (Special Corre¬
spondence.) — For the last week there has been
a lull in both receipts and shipments of coal at
this point, but the indications are that between
now and the first of the month there will be a
distinct betterment. More charters of vessels
have been made within the last week to bring
coal up from Lake Erie ports and vesselmen and
coal dock superintendents, alike, report expecta¬
tion of considerable new arrivals from now on.
The movement westward must start soon, if
there is going to he any at all to speak of, and
as it is confidently expected that there will be
much better trade this year than last, even though
the docks are well filled up at the present time,
the expected movement should deplete stocks rap¬
idly, beginning soon, and the arrival of more coal
will be imperative to keep up the stocks against
the winter months. That is why more receipts
are looked for practically at once.
There is less storage available than during
last winter, two docks going out of commission.
These are the Sunday Creek on the Superior side
of the bay and the Boston coal dock on the Du¬
luth side. This will take out of use handling
capacity of about 500,000 to 600,000 tons a year.
The Boston dock has been used by the Sunday
Creek Company. This dock has about 100,000
tons in stock yet for disposal and the Sunday
Creek is pretty well cleaned out.
Shipments, which had a fair start a few weeks
ago, have suffered a falling off for no apparent
reason, but it is believed that they will be re¬
sumed shortly. Some docks are complaining that
the railroads are slow about making their pur¬
chases for the fall, but two of the docks here,
at least, find the railroad purchases satisfactory.
In the latter cases, the roads are taking the
coal to their western storage stations in mov¬
ing their cars out that way for the grain crop
that is starting.
Business in hard coal is said to be dead so
far, the season for it not being here yet; and
yet, two big train loads of anthracite have just
been shipped west in a rather spectacular way.
The Clarkson Coal and Dock Company started
a special train of seventy-nine cars of anthra¬
cite, about 2,300 tons, out of here on Tuesday
night of this week. The ultimate destination of
the train is Harvey, N. D., via the Soo Line,
but cars will be dropped here and there along
the road. This is the largest shipment of hard
coal that has ever left Duluth in one trainload.
A few days before, another trainload was sent
out by the same company. This consisted of for¬
ty-five cars of anthracite, 1,155 tons, and was
sent as far as Crookston, Minn., where it was
distributed. R. S. Beattie conducted the sales
of the two train loads, and says that the willing¬
ness with which dealers loaded up this far in
advance of the season is indicative of the op¬
timism they feel for the future.
Duluth Local News.
Ed Savage, of Minneapolis, general sales man¬
ager of the Carnegie Company, spent a part of
the week in Duluth and Superior.
At M. A. Hanna & Co.’s dock in Superior more
rail clamps are being put in on the bridges to
protect them from heavy winds and squalls.
The improvements being made are to about the
extent of $10,000.
Although the actual receipts of coal last week
at Fort William and Port Arthur, Ont., were
less than the week previous, the general coal
condition there looks better than at any time
during the present season. Five full cargoes
were unloaded — two bituminous and three anthra¬
cite, and 1,600 tons of coke for the West were
unloaded also. Two part cargoes of coal were
also delivered. En route are reported six bi¬
tuminous cargoes and one of the hard variety.
Car shipments are improving steadily.
Take.shi Kawamura, representative of the Mitsu
Bishi Company, Tokio, Japan, spent the first
part of this week in Duluth as a guest of the
Pittsburgh Coal Company. Mr. Kawamura was
here to inspect the dock equipment of the com¬
pany with a view to ordering similar equipment
for his own company at its docks in Korea. The
Mitshu Bishi Company is in the iron business
extensively but also handles coal, which is mined
in Manchuria, and wi.shes to get the latest in
handling machinery. Mr. Kawamura came to
America to interview the Brown Hoisting Ma¬
chinery Company, of Cleveland, regarding equip¬
ment, and that concern sent him here to see their
machinery in operation. The latter half of the
week, Mr. Kawamura spent on the iron ranges
looking over equipment there.
Birmingham Trade.
Birmingham, Ala., August 26. — (Special
Correspondence.) — While the sale of pig iron
has been very heavy the past sixty days, the
improved conditions in getting out coal have
not come up to anticipations. It seems to
be the case with the coal trade that it is
like the rise and fall of a barometer; at one
time it seems to rise and everything looks
forward to better trade and more coal being
mined, at another it falls and holds off a
while longer. The latter case seems to be
the situation just now, and conditions are
not thoroughly satisfactory in any of the
coals gotten out in this district.
The mining of coking coal is about the
only kind that has anything like a reasonably
satisfactory output. Domestic trade is still
slow in getting good business going. At
present, steam and bunker trade is only
fairly good. Some shipments are being
made down the river, but have not yet
reached large tonnage. Plans are in hand
by several companies to push business down
the river as soon as arrangements can be
completed. In railroad business this class
of trade toward farther southern points, the
tonnage is limited.
One bad feature of the trade is cutting.
While prices have been established, they are
not strictly held up, and this hurts business
as far as profits are concerned. The large
number of companies mining coal and the
anxiety for business have caused keen com¬
petition and cutting has been indulged in by
some salesmen and agents.
Sales in blacksmith coal hold to fairly good
proportion.
The following prices prevail until close of
August:
F. O. B. F. O. B,
Bibb County Domestic Coal — Hines. Birmingham.
Cahaba fancy lump . 2.50 2.80
Cahaba No. 2 lump . 2.25 2.55
Jefferson County —
Fancy steam Pratt . 1.75 2.00
Run of mine Pratt . 1.20@1.25 1.45@1.50
Black Creek —
Fancy steam lump . 1.75 2.05
Washed nut . 1.75 2.05
Washed steam . 1.35@1..40 Frt. rate 30c
Mine run . 1.35@1.40 Frt. rate 30c
Jefferson Seam Steam Coal —
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic —
Carbon Hill lump . 1.60 2.00
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Shelby County —
Montevallo domestic prices ranging from $2.75 to $3.00.
Blacksmith coal, washed and screened, per ton, $2 to
$2.25 at mines, with different rates to various points.
Birmingham Trade Briefs.
For several years it has been the cu.stom
for the state to lease its convicts for min¬
ing coal. Two of the larger companies have
used large numbers of convicts in mines, and
it is claimed by many to be detrimental to
mining interests. The state legislature now
in session has passed a bill which abrogates
the lease system for coal mining, and all
convicts must be out of mines by 1920. This
will be a heavy blow from a financial stand¬
point, as the state convict mining department
has been a good revenue provider.
The Interstate Commerce Commission re¬
cently granted the railroads a raise of fifteen
cents a ton in coal rates from Birmingham
to Mobile and New Orleans, from $1.25 to
$1.40 per ton. Thus far the railroads have
not asked for date of application of such
rates. As Warrior river rates are lower to
these points it is probable that while the
raise has been granted, it may not be asked
for effective dates.
A good report comes from Walker county.
“Mining interests in Walker county are tak¬
ing a new lease of life,” said G D. O’Rear,
coal operator, of Drifton. “Most of the
mines in our section have closed contracts
for the winter and have started their forces
to work on full time, while a number of new
companies have entered the field and are
making new openings. J. J., C. D. and R. Y.
Long and associates are starting a new min¬
ing camp in the Piney Woods district, sev¬
eral miles north of Jasper, and the blue¬
prints call for a modern mining camp in
every respect, with a large capacity.”
Coke is in good demand and supply is only
fair. The renewal of furnace activity has fur¬
ther shortened the supply of available coke.
thus adding to its firmness and raising prices.
The Woodward company has been forced to
get some coke from the Tennessee by¬
product ovens at Ensley. Foundries are tak¬
ing larger supplies. The following prices are
prevailing at present: Beehive furnace, $2 75
to $3; beehive foundry, $3.25 to $3.50; by¬
product, $2.25 to $2.75.
Detroit Trade.
Detroit, Mich., August 26. — (Special Corres¬
pondence.) — Generally improved conditions con¬
tinue as the most interesting feature of the coal
trade in Detroit. With an apparently broadening
demand_ prices are taking on a firmer tone, while
no special increase is reported in the quantity of
consignment stock coming into the city.
As would be expected the most active inquiry
is for steam coal and the demand seems broad
enou.gh to include practically all varieties. West
Virginia gas, three-quarter lump, which for a
long time has held around ninety-five cents to $1
is now being quoted at the mines at $1.10, the
equivalent of $2.50 delivered in Detroit. Mine
run has advanced from eighty to ninety cents and
slack is selling at from seventy-five to eighty
cents while Kentucky splint, nut, pea and slack
holds around sixty-five cents.
While the orders are not, in most cases of
lar.ge size, they are coming in more frequently
and in the aggregate they represent considerable
tonnage. Orders from towns in the interior of
the state, also are coming in more freely with
the advance of the threshing season in agricul¬
tural sections.
Steam coal continues rather comatose
thou.gh even in that branch of the business, there
are said to be some indications of a growing
breadth of demand. The long continued rains
which have been an unusual feature of weather
conditions in and around Detroit have so charged
the atmosphere with moisture that an occasional
fire is found almost necessary in many homes to
dry out the air.
The volume of business in anthracite continues
far short of what the shippers believe should be
moving this way at this season of the year. Re¬
tail dealers appear reluctant to put their money
into stock, even with the stimulant of a ten cents
discount, until the time is nearer when a larger
distribution may be made to the consumers.
In the rail-lake trade there is no perceptible
improvement, with no prospect of any early
change. The movement to the interior from coal
receivin.g docks at the head of the lakes is. still
very light in volume and until it attains a much
larger volume, there wdll be no relief from the
congestion, which makes it impracticable to
transport any large quantity of coal from lower
lake ports.
In the third week of August three cargoes of
anthracite and two of bituminous coal were de¬
livered at Fort William and Port Arthur and
three partial cargoes, includin.g 1,600 tons of coke
also arrived there. Shipment by rail westward
from the Canadian head of the lakes is reported
as improving slightly. Prices in the local market
on mine shipment order.
are as follows
F. O. B.
F. O. B.
West Vireinia Das —
Mines.
Detroit.
Three-quarter lump .
. 1.10
2.50
Mine run .
. .90
2.30
Slack .
. 75@ .85
2.15@2.25
West Virginia Splint —
Four-inch lump .
. 1.50@1.75
1.90@2.15
Two-inch lump .
. 1.25@1.40
3.15@2.30
Three-quarter .
. 1.10
2.50
Mine run .
. 1.00
2.40
Nut, pea and slack .
1.95@3.05
Smokeless —
Lump and egg .
. 2.25
3.85
Nut .
3.35
Slack . . .
Mine run .
Open
. . . . . 1.25
2.85
Kentucky Splint —
Lump .
. 1.60@1.75
$3.00@3.15
Egg .
. 1.25@1.40
2.65@2.80
Nut, pea and slack .
2.05
Fairmount —
Three-quarter steam lump. . .
. 85@) .95
2.2502.35
Mine run .
. 70@ .80
2.10@2.20
Slack .
Open
Hocking Valley — -
Shaker three-inch lumj) .
. 1..50
2.65
Shaker egg and nut .
. 1.15
2.30
Domestic lump .
. 1.35
2.50
Three-quarter lump .
. 1.25@1.30
2.40@2.45
Mine run .
. i.oo@i.in
2.15@3.25
Nut, pea and «lack .
Open
Pittshurgh No. 8 —
Three-quarter lump .
. 1.15
2.30
Mine run .
. 1.05
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
. 2.50
3.65
Cambridge —
Three-quarter lump .
. 1.20
2.35
Mine run .
. 1.10
2.25
Pomeroy —
Two and three-inch lump...
. 1.60
2.75
F-gg .
. 1.35
3.50
Slack .
Open
178
[August 28
THE BLACK DIAMOND.
New York Trade.
Anthracite More Active, Though Still
Dull — Better Tone Permeates
Bituminous Circles.
Office of The Bi.ack Diamond,
New York, August 26.
There is a much better demand in certain
quarters for anthracite, though the volume of
coal called for due to this demand is disap¬
pointingly small. However, certain shippers
are finding that their orders are increasing,
and they look upon this as an indication that
the fall buying movement, usually felt after
Labor Day, has already commenced.
This much is true. The companies are
working on better time, whether for the pur¬
pose of making prompt shipments, or for
the purpose of stocking against future needs.
Everyone seems to be agreed upon the fact
that there will be an active demand for an¬
thracite coal this winter, and that it is, there¬
fore, in the nature of insurance to lay in good
storage stocks now. It will no doubt be
found to be the case that the stocking on the
part of certain companies runs largely to one
or two unfavored sizes. There is^ some talk
of large stocks of steam coals being accum¬
ulated at interior points, but this is* only to
be expected, as most of the large producers
have large steam coal contracts that call
for very heavy shipments during the winter
months, and to lay in stock at this time means
only a move towards the protection of the
consumers of these coals.
Some activity has been noted in the_ line
trade this week. Dealers say that this is
due no doubt, to the fact that consumers m
the all-rail district are returning frorri their
vacations and have begun laying in their win¬
ter coal. Retail dealers at tidewater points
also report more activity on the part of con¬
sumers, and that they are making good de¬
liveries from their yards just now. This will
call for very heavy demands for wholesale
lots in the very near future for replenishing
purposes.
At the moment, nut coal is weak, and it
in common with egg, is still being offered by
individual producers at good concessions from
the circular. Stove is holding the leadership
very well, and is selling nearer the circular
than any of the other coals.
Movement to the lakes should be very ac¬
tive from now on, while the tidewater move¬
ment is expected to show up much better
early next month.
Some of the trade are feeling considerable
optimism as to the outlook for the coming
fall and winter. Contrasting conditions with
what they were a year ago, it is argued that
now, there is practically employment for
everybody that will work, and in many in¬
stances at an advance of from ten to twenty
per cent in wages. Last winter there was a
great deal of unemployment. Thousands of
those employed worked on short time. This
meant that thousands of anthracite consumers
suffered for want of coal. Coal consumption
was hurt in many ways. Houses that would
ordinarily have two or three stoves or furnaces
going in cold weather, used only one, and
fed the coal sparingly to this. With money
more plentiful this winter, the coal man sees
them running all stoves, and consequently,
a very marked increase in the consumption
of coal.
The trade are still very much exercised
over the new anthracite freight rate that the
commission has ordered to go into effect on
October 1st. So far, the railroad people
have not made an appeal. Just what ac¬
tion they will take, has not so far, been
indicated. The ruling of the commission on
the steam size rate to tidewater has been asked
for. According to the common interpretation
of the order, the roads will be permitted to
advance their rates on steam sizes from fifteen
to twenty cents per ton. Last week, when
this point was brought out, some of the trade
scoffed at the idea that the railroads would
take this action, though the commission had
given them the authority to *do so. Now,
there is the fear on the part of these same
people that the roads may be forced to take
this action. In this event, the result will
be a most active competition with soft coal
that may completely re-arrange many con¬
tracts now enjoyed by sellers of the steam
sizes of anthracite.
The steam sizes show but little improve¬
ment. Demand is yet very limited, with the
exception of choice grades of rice and barley,
which are very short. Buckwheat is in good
supply, while pea is especially long and un¬
improved.
The Bituminous Situation.
The eastern bituminous trade continues to
improve, though not of the radical nature that
those most interested would like to see. That
is, there is no question but that each week
is finding the mines as a whole, operating on
better time, and consequently, more coal is
moving.
The attitude of several of the very large
railroads, in storing large quantities of coal at
this time; is being commended. This is help¬
ing very materially, those operators who have
fuel contracts. Just now, their commercial
contracts are not pressing, and it comes as
a blessing to them to be permitted to work
their mines on fairly good time to supply
railroad fuel, as this works to their advan¬
tage in many ways. One of the most im¬
portant of these being that they are able to
give pretty regular employment to labor and,
therefore, keep together, a good working force
to take care of pressing commercial business
that seems assured later on.
Already, although general bituminous trade
is said to be so very bad, both the Baltimore
& Ohio and Pennsylvania roads are develop- ,
ing small car shortages at certain points.
What is to happen later on, the trade fear
to predict. Certain it is that many large coal
consumers, now adamantically indifferent to
the treatise of the coal men to take coal,
while transportation conditions are ideal, are
going to suffer.
Two very important contracts to the east¬
ern coal trade are now up for consideration,
both of which are to be settled the early part
of September. One of these is the Panama
Railroad contract for about 600,000 tons per
year for the Canal. The other is the fuel
contract of the Boston & Maine for 760,000
tons per year, bids for five years being in¬
vited. Both of these contracts are at present
being largely, if not wholly, supplied by West
Virginia coals.
Prices cannot be said to be improved.
Maine prices are inclined to be firmer. At
tide there is still to be obtained from time
to time, some bargain lots. This week, some
good Pennsylvania coals have been obtainable
at New York Harbor ports at $2.55. Choice
goods at $2.65 to $2.75. Inferior West Vir¬
ginia sells at $2.40. Slack is stronger.
We quote current rates of freight as fol¬
lows:
From Hampton Roads to Boston, seventy-
five to eighty-five cents; to the Sound, seventy
to eighty cents.
From New York rates to New Haven are
thirty cents. New London, forty cents, and
Providence and New Bedford, forty-five cents;
to Boston, fifty-five to sixty cents; Ports¬
mouth and Portland, fifty-five to seventy cents ;
to Bangor, seventy cents. Harbor rates are
from eighteen to twenty cents.
Prices on gross tons of bituminous coals
are :
F. O. B.
Somerset County — Harbor.
Best grades . $2.85
Medium grades . 2.60
Ordinary . 2.65
Cambria County —
Best Miller vein . 3.00
Medium grades . 2.55
Cheaper grades . 2.60
Clearfield County —
Best grade . 3.00
Ordinary grades . 2.50
Indiana County —
Best grade . 2.80
Medium grade . 2.50
Maryland —
Georges Creek big vein . 3.15
West Virginia Splint — ■
Ordinary grades . 2.40
Best gas, j4-inch lump . 2.65
Best grade, run of mine . 2.65
Gas slack .
F. O. B.
Mines.
$1.30
1.10
1.00
1.40
1.15
1.05
1.35
1.00
1.25
.95
1.65
.75
1.10
.90
.55® .70
New York Trade Briefs.
A. H. Dary, secretary to Vice-president
Renahan of the Smokeless Fuel Company,
No. 1 Broadway, is spending his vacation at
Garnett Lake, N. Y.
T. F. Conway, a well known coal salesman.
making his headquarters at Waterbury, Vt.,
becomes associated with Hartwell, Lester &
Clitter, Inc., of No. 1 Broadway, effective on
September 1st.
The Johnson Coal Company of Lloyd, N. Y.,
has just been incorporated under the New
York state laws. The capital stock is placed
at $10,000. Incorporators are H. A. Lent, M.
and L. Johnson of Highland, New York.
Thruston Wright of Pittsburgh, one of the
receivers of the Merchants Coal Company of
Pennsylvania, who is spending a vacation at
one of the Jersey coast resorts, was a visitor
to the New York office of his company on
Monday.
Charles E. Lester of Hartwell, Lester &
Clitter, Inc., No. 1 Broadway, sailed on Thurs¬
day of this week for Norway direct. From
Norway, Mr. Lester will go to London and
Paris. His visit abroad at this time has to
do with the exportation of coal, in which line
his company has been very active since the
war began a year ago.
Advices from Washington on Tuesday
stated that the Inter-State Commerce Com¬
mission had ruled that demurrage charges of
$1 per car per day in excess of five days, as
charged by the Delaware, Lackawanna &
Western Railroad on anthracite coal waiting
trans-shipment at Hoboken or nearby points,
are reasonable.
A usually well posted anthracite man said
Tuesday: “The anthracite trade showed quite
some improvement last week. There was
considerable buying for line trade, while the
tidewater business was also stimulated. I be¬
lieve that real buying has set in two weeks
earlier than is usual in the fall. In most sea¬
sons, very little real buying is felt until after
Labor Day. This year, dealers are inclined
to get in coal earlier, and no few of them
tell me that they are actuated in doing this
due to the fact that consumers have begun
buying and that they are making good de¬
liveries just now from their yards.”
The Panama Railroad Company, through
its purchasing department at 24 State street.
New York, will receive bids until 12 o’clock
noon on September 3rd, for furnishing coal
for the Isthmus for the twelve months end¬
ing September 15, 1916. Estimated require¬
ments will be run between 500,000 and 600,-
000 tons. Specifications call for not to ex¬
ceed moisture delivered coal, 3 per cent; ash
dry coal, 6l4 per cent; volatile matter dry coal,
21 per cent; sulphur dry coal, 1 per cent.
Coal must not contain less than 72J4 per cent
fixed carbon and 14,700 b. t. u. per pound dry
coal.
John Stoddard, formerly a member of the
New York coal trade, but now connected with
the Stonega Coal & Coke Company of Big
Stone Gap, Va., was in New York this week.
Mr. Stoddard states that on the first of Sep¬
tember, the Southern Railway will put its
new coal handling pier at Charleston, S. C.,
at work, and that from that time on the
company with which he is associated will
be an important factor for export and bunker
trade through the port of Charleston. Charles-
will have the same tidewater freight rate on
coal for trans-shipment, as is now enjoyed by
the Hampton Roads ports, viz: $1.40 per ton,
and it is understood that coal will come to
Charleston pretty regularly now from the va¬
rious Virginia coal fields tapped by the lines
of the Southern, Clinchfield and other rail¬
ways in this territory.
C. E. Bockus, president of the Clinchfield
Coal Corporation, was at the New York offices
during the past week. For several days fol¬
lowing the hurricane that did so much damage
to Galveston and vicinity, Mr. Bockus was
unable to get any information as to how the
Clinchfield’s steamer, dock and harbor prop¬
erties fared from the storm. The new steamer
Clinchfield, now being used by the company
in transporting coal to Galveston had left
Galveston only a day before the storm. She
was bringing lumber east, and was to have
put in at St. Andrews Bay to complete her cargo.
It was not until late Friday, that advices
were received of her safe arrival at this port
with practically no damage sustained. While
advices from Galveston were lacking in detail,
they showed that the new bunkering barge,
recently built for the Clinchfield to use at
Galveston and Texas City, had escaped darn-
age. Some of the small harbor barges evi¬
dently suffered.
No. 9]
THE BLACK DIAMOND
179
Philadelphia Trade.
Anthracite Trade Is Slow, but the Bitumi¬
nous Demand Is Better in All of
the Departments.
Office of The Black Diamond,
1400 Land Title Building
Philadelphia, Aug. 25.
Somewhat of a “reverse English” has been ob¬
served in the local coal trade during the past
couple of weeks. For months the bituminous men
assumed the position of the “down trodden broth¬
er,” while the anthracite people were as perky
as could be. The extreme dullness that has fol¬
lowed the anthracite trade for a matter of six
weeks has caused quite a down-in-the-mouth feel¬
ing, and, with a most promising future the soft
coal men have all the best of the going.
Here and there slight changes in spot price on
bituminous have been noted but nothing to cause
a change in the established prices. Firmer hold¬
ing to the set mark is about all that is taken in.
However on contract prices a decided
change has been noted. Pretty near all
of the firms, big and small are waiting for a
pacemaker. Quite a number of consumers who
have come in with eleventh hour contracts have
been informed that if they want prices named
they must pay a nickel to a dime a ton over the
prices that were given three to four weeks ago.
And, a more healthy sign has been noted in the
fact that firms under contract have beeft taking
more fully their stated requirements.
At the piers the most of the demand has been
for cheap coal, and higher grades have been
rather neglected, in fact at the Greenwich piers
there is quite an accumulation, some on demur¬
rage and some dangerously near. Port Rich¬
mond has been fairly free of coal carrying this
railway charge.
At the Greenwich pier the Pennsylvania rail¬
way is putting some coal into storage. This
has been dumped upon the ground. The heavy
storage of coal by this company at Altoona, Sun-
bury and now at Greenwich, and its significance,
has been pointed out to consumers as the best
evidence that they should be up and doing in
looking out for their supply.
From the regions, mines that have seen fit to
increase their capacity have run point blank into
the labor situation and have found that the bug¬
aboo “scarcity of labor” is a reality.
Anthracite Situation.
With the coming of September first and the
resumption of circular prices at the winter stand¬
ard, the hard coal men are commenting on the
lack of interest and movement through the re¬
tailers of their product. Generally speaking the
wind up of the month is a signal for an increase
of business. At this writing there has been no
flurry or scramble for supplies and “old timers”
in the business are of the opinion that late Sep¬
tember may come before any great rush is noted.
Men who have been to New England within
the last week say that even this section is due
for a late start. They say that most of the deal¬
ers are of the opinion that a dash of cold weather
is necessary in order to start the wheels moving.
This is not based on the fact that coal is neces¬
sary for protection, but rather that the need of
coal will cause some of the backward ones to
pay their bills. As matters stand in that section
a heavy percentage of accounts have been car¬
ried over from last year and the retailers show
little disposition to extend further credit. This
is pointed out as a reason for the diminution of
water shipments.
Chestnut has been the chief laggard in the
sizes. Even prices that have been generously cut
in some quarters have failed to move any great
volume of this. Pea coal is still draggy but
has shown a disposition to strengthen in price.
With the curtailment of production all grades
of buckwheat have been strong and have been
well taken by the steam users. Egg coal is pos¬
sibly the leader in the market and has held firmly
to the August circular price.
Philadelphia Trade Notes.
J. A. Emmons of the Emmons Coal Mining Com¬
pany was on a business trip to New York City
this week.
J. P. Kisbaugh of the Mill Creek Coal Company
at Mauch Chunk circulated among the local
trade on Wednesday.
F. H. Cortright of the Cortright Coal Com¬
pany went over to New York in the middle of
the week on a business tour.
R. B. Isner, assistant general manager of the
Davis Colliery Company, was a visitor to the
local offices this week while en route to New
York.
R. H. Bopes, formerly auditor of the Davis
Colliery Company, and now located in Washing¬
ton, D. C., said “howde” to local friends during
the mid-week.
L. F. Darnall, manager of the local office of
the Merchants Coal Company, took a few days
of rest the early part of the week and spent
them on the Jersey coast.
John H. Tees of the Cincinnati office of the
Island Creek Coal Sales Company, and who was
formerly a member of the local force renewed
old acquaintances here this week.
Lloyd McCrum of Somerset, general manager
of the operations of W. H. Bradford & Co., was
a visitor to the local offices of that concern after
a day or two spent in New York City.
C. M. Hillegas, sales agent at Allentown, and
Charles E. Coffin, chief clerk in the Philadelphia
office of the Pennsylvania Coal & Coke Corpora¬
tion, are on their vacations this week.
H. C. Pearson, sales manager for the Van
Wickle Estate, returned early in the week from
a tour of the St. Lawrence River and Lake On¬
tario. In Buffalo he visited the coal trade there
and was informed that the storms and other un¬
toward conditions had cut down the usual heavy
distribution of coal to the farmers.
The Clearfield district has put in an official
bid for honors. Operators there reported that
for the first time in months there was a shortage
in supplies of cars. The reason given was that
the Pennsylvania railroad was using such a vol¬
ume of cars in its storage preparations that the
usual ample supply had to be cut down.
During the week bills have been received by
the members Ko-Koal for their dues to the
National Coal Association. The bills were made
out for $5 with a foot note to the effect that
a three dollar discount would apply to those who
were members of the Philadelphia breaker. Some
of the members were puzzled over this and Sec¬
retary Scott had quite a time explaining just
what the “billet-doux” meant.
Hard coal men were on the anxious seat Wed¬
nesday when the dispatches from New York
intimated that nothing was made public as to
the action that the officials of the coal carrying
roads took on the new rates ordered by the
Interstate Commerce Commission. As these have
to be taken into consideration on fall business
a keen weather eye on the decision of the rail¬
way people is anxiously awaited.
Coal men who have had their eyes on the
magic city that has been rising for the Rem¬
ington Arms Company at Eddystone, and who
have been counting the number of tons per
day that the plant will use, received the intima¬
tion that the coal burning may come from an¬
other source. It is understood that negotiations
are on for a supply of electricity to run the
plant from the Philadelphia Electric Company.
With the opening of Philadelphia’s newest sky¬
scraper, the Widener building, there has been no
great rush on the part of the coal men to take
quarters there. The Shade Creek Coal Company,
it is understood, was the first of the fuel people
to sign up for quarters. A prophecy was made,
however, that with the movement of old estab¬
lished firms from the former center of trade,
at 5th and Chestnut streets, it would not be long
before some of these companies might be found
in the neighborhood of Broad and Chestnut
streets.
Cards were received by the local trade this
week from Julian Huff, president of the Latrobe-
Connellsville Coal Company, that B. Nicoll & Co.
would act as the local agents for that concern.
Advertisements have appeared in the local
papers announcing the sale of the Marmet Coal
Company in Cincinnati. Philadelphia capital has
been interested in the re-organization of the
company and it is understood that a further
entrance of other Philadelphians in the proposal
to buy out the company is the reason for the
appearance of the announcement of sale.
Quite a number of Bostonians interested in the
coal shipping trade were present at the launch¬
ing of the new collier “Franklin” at the plant
of the New York Shipbuilding Company in
Camden on Saturday last, when the big boat
was placed in the water. Among those present
were Captain Arthur Crowley, assistant general
manager of the Coastwise Transportation Com¬
pany, owner of the new vessel; John Naston,
Harry Hutchinson, Walter Irvin, Thomas Rati-
gan, Captain Elmer Crowley, S. J. Goucher and
S. M. Goucher. The boat was christened by Mr.
Arthur Crowley. The vessel has a capacity of
9,400 long tons, is 395 feet long and thirty-four
feet six inches deep. She is fitted with un¬
usually large bunkers and is a self discharger.
As soon as outfitted the new collier will be
placed in the Norfolk-Mediterranean trade.
Ed Harding, local manager of the Blaine Coal
Company’s office, was in New York on Monday.
Buffalo Trade.
Buffalo, N. Y., August 26. — (Special Corre¬
spondence.) — Anthracite shipments by lake for
the past week were 103,000 tons, which is rather
below the average. The cause is the slowing
down of one large loading company, which sent
out but one cargo last week. The outlook for
larger shipments in the near future is good, as
the consumers in the Northwest are beginning to
take more coal, and this relieves the docks, which
in some cases have been well filled up to now.
Of last week’s shipments, 33,200 tons cleared for
Chicago; 25,500; Milwaukee, 15,800; Waukegan,
14,000; Green Bay, 7,300; Manitowoc, 7,200.
Few dealers are ordering any anthracite at
present and not much picking up in trade is
looked for until colder weather arrives. Stocks
are now of rather good size, so that there is
felt to be little use in ordering. But the usual
pressure is likely to be felt this winter when
cold weather arrives and those dealers who pro¬
crastinate are likely to be disappointed. The
railroad freight reductions do not apply to this
city and nearby territory, but many dealers are
making inquiry on the subject and some believe
erroneously that their coal is likely to be cheaper.
The bituminous trade is more active than a
few weeks ago and a more hopeful feeling pre¬
vails as the outlook for the near future. Plants
in different lines are getting busier and some of
those making steel have all the business they
can handle for the near future. Coal prices
are holding fairly steady on contracts, being on
a basis of $2.40 for mine run. For spot delivery
prices are somewhat easier, especially in slack,
which is now selling at about $1.90, or a little
better price than some weeks ago. The big ship¬
pers are beginning to advise their customers that
coal is likely to be quite a little higher this
winter and that it is a good plan to be prepared
by making contracts now.
The pig iron furnaces in this district have
lately taken orders for the first quarter of next
year and enough business has been secured to
keep the operators quite busy. A good deal of
tonnage is understood to be under negotiation
with Buffalo furnaces for the first half of next
year, but at present the furnaces are not seeking
business of this type.
The coke market does not gain any particular
amount of strength, but prices are holding firm.
Buffalo News Briefs.
C. M. Stanton, for some time with the Under¬
hill Coal Company, is now on the sales force of
Whitney & Kemmerer, and will travel mostly in
Canada.
James Jones, of the Logansport Coal Company,
and W. N. Stone, of the Youghiogheny Coal &
Coke Co.', .Pittsburgh, have lately been callers
upon the trade.
It is stated on good authority that the Rich¬
land Coal Company, of Wheeling, W. Va., will
locate an office here in the near future. Arrange¬
ments are not yet quite complete in the matter,
but will probably be in a few days.
Charles S. Snyder, who has been located in
Syracuse, N. Y., for’ the past two or three years,
representing the Buffalo & Susquehanna Coal
& Coke Co., has taken service with the Lehigh
'Valley Coal Mines Co., with headquarters at
Syracuse. H. S. Bradfield, of Buffalo, has been
appointed to fill the position made vacant by
Mr. Snyder’s resignation.
The sale of the Buffalo & Su.squehanna Railway
Co., which was set down for August 2'3d, was
postponed until September 13. The road will be
i)id in by the l)ondholders, who are interested
in it to the extent of $7, .500, 000. They will turn
the property over to tlie Western New York
Traction Company, which is represented by Wil-
■son R. Page, of Olean. He plans to electrify it
for passenger traffic and use steam for freight
trains.
180
THE BLACK DIAMOND
[August 28
New England Trade
Baltimore Trade.
Wasteful Coke Production.
Boston, August 26. — {Special Correspondence.)
— It is difficult to discover any important change
in the fundamental conditions governing the
wholesale anthracite and bituminous markets of
New England. Interest among the local repre¬
sentatives of coal shippers and their clerks ap¬
pears to center in vacations more than in any¬
thing else.
New orders for anthracite appear to be com¬
ing in fairly well for late August delivery, but
the market cannot really be called active. The
buying orders in most cases call for stove, egg
and nut, and are for cargo as well as car-lots.
Boston, Lynn and Providence appear to have
been the best buyers of cargo lots since last
reports, while retail dealers located on New
Haven and Boston & Albany points have placed
more orders than those on Boston & Maine
points. Prices here are very firm because ship¬
pers have learned through past experience not
to force coal on this market and by so doing
pay demurrage. Stove coal for $6.10 per ton
on cars at Mystic Wharf can be had for but
few days longer, or nut at $6.35, as prices will
automatically advance 10 cents per ton Sept. 1st.
A little business is coming along all the time
from the far Maine and provinces points and there
is nothing in view that suggests any turn for
the worse. Wholesale dealers here, in a great
many instances, are predicting a boom in the
market after Labor Day. This belief is based
on the fact that stocks at storage points are far
from abnormal, the mines are still being oper¬
ated on reduced time, the New England retailers
have not bought anywhere near the amount of
anthracite they did last year, and a probable car
shortage owing to the enormous crops in this
country.
As was predicted in The Black Diamond
a fortnight ago, John W. Bell and Harry O.
Staples, former members of the firm of Pratt,
Staples, Bell & Young, Inc., have, with Frederick
R. Mackenzie, formed a company under the name
of Staples & Bell, Inc., with a capital of $101,200.
The firm proposes to deal in hay and grain as
well as fuel.
As practically all of the important consumers
of New England have contracted for all the
bituminous they will need for some time the
local market appears quiet. It is believed, how¬
ever, that the Boston & Maine Railroad may pos¬
sibly be in the market for supplies for future
deliveries. It is probable that some of the largest
dealers here will submit bids for the 500,000 to
600,000 tons of coal wanted by the Panama Rail¬
road, bids for which will be opened Sept. 3d. New
business is still confined very largely to those
mills or manufacturers making war munitions
for the Allies who are not supplied with water
power.
So far as Mystic Wharf is concerned there is
practically no spot market for New River, Poca¬
hontas, Georges Creek or any other kinds. New
River and Pocahontas would not, it is generally
believed, bring more than $3.60 per ton on cars
at Mystic Wharf owing to competition there.
Georges Creek is purely nominal at $3.90 to $4
per ton on cars. Stocks of bituminous at South¬
ern ports are still far in excess of the demand
and the f. o. b. Hampton Roads market is natur¬
ally more or less unsettled although officially
quoted on a basis of $2.85 per ton. It is highly
probable that some shippers would accept $2.75
and possibly $2.70 per ton. Pennsylvania bitum¬
inous is weak owing to a lack of demand brought
about by an abundance of water power. The
official market for these coals is still ninety cents
to $1.50 per ton on cars at the mines, but some
demurrage has brought considerably less.
The Southern freight rate market is senti¬
mentally weaker, yet rates have not changed ma¬
terially, they being usually from seventy-five to
eighty cents per ton from Hampton Roads’ ports
to Boston. The demand for space is compara¬
tively light and owners might possibly make con¬
cessions if a considerable tonnage was involved.
Many of the owners of anthracite barges are
refusing to take any more charters for return
cargoes of ice, fertilizer, lumber, etc., because
of their belief that space will be in keen demand
before another month goes by. Just now the
usual asking rate for anthracite space from New
York to Boston is fifty to fifty-five cents per ton,
G. I. Stafford, a Baltimore coal shipper,
spends idle hours as a gardener. He is boast¬
ing of a crop of big Poderoso tomatoes raised
at his Walbrook home. Six he exhibited
weighed more than seven pounds.
Baltimore, August 26. — {Special Correspond¬
ence.) — Unless war conditions or some unexpected
development comes to disturb the rising tide
in the coal trade, the next few weeks should
see the fuel industry on the best plane it has
held for months past. With nearly every line
of industry now reporting gradual improve¬
ment, with a veritable boom now on with
plants that can handle war orders, and with
railroad earnings and general movement all
showing distinct improvement week by week,
there can no longer be a doubt that much better
times are at hand.
Mine connections everywhere are now urg¬
ing the taking of all the fuel possible, while
there is yet time, and pointing to the fact
that the Pennsylvania, Baltimore & Ohio, and
other great railroads are storing millions of
tons of fuel for the coming fall and winter.
With English coals practically out of the mar¬
ket now, there is every expectation that the
call from foreign sources on American fuels
will continue to grow. Railroads here are
planning extension of coal loading facilities,
and this export movement is apparently des¬
tined to cut an increasing figure in the trade.
So far prices have not advanced materially
at the mines. Under a growing call for fuel,
however, the movement is fast approaching
normal, and as soon as this is reached a big
jump of prices is apparently sure. The fact
that cars are short in many mining regions
alreadjq and that all the mining properties
are experiencing labor scarcity, even when
not running capacity as yet, indicates that the
fall and winter are sure
to bring decided trou-
ble in supplying
everybody
as needed.
Prices to the
trade
at
the mines
may be
quoted as follows:
Fairmont —
Three-quarter .
F. 0. B.
Mines.
$0.85@ .90
F. 0. B.
Baltimore.
$2.28@2.33
Run of mine .
.75@ .80
2.1S@2.23
Slack .
.60@ .65
1.98@2.03
Somerset —
Best .
1.25@1.35
2.43@2.53
Good .
, I.10@1.15
2.28@2.33
W. M. R. R.—
Freeport .
.80
1.98
B. & 0.—
Freeport .
.80
1.98
P. R. R.—
Best South Fork...
1.30@1.35
2.48@2.5S
Miller vein .
, 1.10@1.15
2.7802.83
Ordinary .
, .85@ .95
2.03@2.13
During the past week several thousand min¬
ers were added to the payrolls in West Vir¬
ginia, Pennsylvania and Maryland. Some
mines are now working full time, but there
are still a number that have not resumed or
are only in partial operation. That the whole
field will soon be as busy as can be had with
available mine labor is predicted on all sides.
The export movement from Baltimore for
the past week held well, as a total of 52,194
tons was loaded at Port Covington and Curtis
Bay for foreign ports. Through the Maratime
Exchange came announcement of nineteen new
charters also for loading here in the near
future.
While summer weather holds firmly, an¬
thracite men say there is little to report.
Some calls are coming for delivery of coal for
future household use, and institutional delivery
is fairly brisk for the season, but the main
bunch of orders will not be available for sev¬
eral weeks as yet. Steaming fuels are in poor
call.
While Germany is carefully conserving her re¬
sources by coking her fuel output in by-product
ovens to save the valuable tar, ammonia, gas, and
benzol, the United States is literally throwing
away these useful products to the value of mil¬
lions of dollars annually by the continued use of
the wasteful beehive oven.
In 1914 the total output of coke in the United
States was 34,555,914 short tons, valued at
$88,334,217. Of this 23,335,971 tons was made in
beehive ovens, with an almost total loss of the
by-products, and 11,219,943 short tons was pro¬
duced in by-product ovens, with a recovery of
over $17,500,000 worth of by-products, or ap¬
proximately $1.55 for each ton of coke. As there
were over 23,000,000 tons of bee-hive coke made
in 1914, and as the yield of coal in coke is less in
beehive ovens than in by-product ovens, the loss
of by-products from coal made into coke in the
beehive ovens in 1914 was not less than
$40,000,000. The slump in copper and other base
metal smelting following the declaration of war
last August was directly responsible for a marked
decrease in the coke production in the Rocky
Mountain States.
Compared with 1913 the decrease in coke out¬
put was 11,743,616 tons, or twenty-five per cent
in quantity, and $40,588,056, or 31.5 per cent in
value. The beehive and by-product coke did not
suffer equally in the decrease, the former falling
off 10,248,859 tons, or 30.5 per cent in quantity,
and $30,030,371, or thirty-seven per cent in value,
as compared with a decrease in by-product coke
of 1,494,757 tons, or 11.8 per cent in quantity, and
$10,557,685, or twenty-two per cent in value.
Three states, Kentucky, Ohio, and Washington,
showed increases. These increases were all due
to the operation of by-product plants, the building
of which was begun in 1912 and 1913. The prin¬
cipal decreases were : Pennsylvania, 8,495,051
tons; West Virginia, 1,044,790 tons; Virginia,
522,619 tons; Indiana, 450,373 tons; Illinois,
434,385 tons; and New York, 301,116 tons.
At the end of 1914 there were 99,755 ovens in
the United States, of which 5,809 were by-product
ovens, and 93,946 were beehive. Of the by¬
product ovens 667, or 11.5 per cent, were idle
throughout the year, and 44,450, or 47.3 per cent
of the beehive ovens were idle. At the end of
1914 there were under construction 644 new by¬
product ovens and 605 new beehive ovens. Dur¬
ing the year seventy-one by-product ovens were
abandoned, all of which it is expected will be
replaced by others of the retort or distillation
type, and 3,603 beehive ovens were also
abandoned.
The following table gives the output of coke in
the United States during 1914, by States:
Production of coke
in the United
States.
States, 1914,
by
Quantity
(short
State — tons),
Alabama . 3,084,149
Colorado . 666,083
Georgia . 24,517
Illinois . 1,425,168
Indiana . 2,276,652
Kentucky . 443,959
New Jersey . 255,283
New Mexico . 362,572
New York . 457,370
Ohio . 521,638
Pennsylvania . 20,258,393
Tennessee . 264,127
Virginia . 780,984
Washington . 84,928
West Virginia . 1,427,962
Maryland, Massachusetts, Michigan, Minnesota,
Utah and Wisconsin . 2,222,134
Total
34,555,914
Egyptian Railways have contracted with the
Consolidation Coal Company for the delivery
of 60,000 tons of coal.
The Allegheny Valley Operators’ Association
met at the Lafayette Hotel on August 20 with a
good attendance. E. C. Roberts was chairman
of the meeting and an election of officers was
held, resulting in the choice of George E. Henry
as president and Dr. G. D. Morgan as secretary
and treasurer. The former was long secretary
of the association and the latter is son-in-law
of the late president, C. P. McCafferty. That offi¬
cer and the late James Ganoe, both prominent
in the association, have died within the past
few months, and their deliberations at the meet¬
ing were much missed. An executive committee
was chosen, consisting of E. C. Roberts, W. D.
Ward and J. R. Brady. Also a board of arbitra¬
tion, made up of G. E. Henry, A. J. Watson and
L. B. Lewis.
Hans Lagerloff, general, manager of the
Scandinavian - American Trading Company,
with offices in the Produce Exchange build¬
ing, New York, is trying to bring about the
purchase of five of the Hamburg-American
Steamships now interned in New York, to
trade between New York and Sweden under
the Swedish flag. The question at issue just
now, is said to be the action of the allies in
giving permission for the transfer of the
steamers to a neutral flag. According to Mr.
Lagerloff, there is a great need for vessels
to take American products into Sweden. He
said: “At the present time Sweden wants
4,000,000 tons of coal for use next winter, and
the obiect of purchasing the ships would be
to use them for freight entirely. They would
be bought by us for the Sweden-American
Line, which was incorporated a year ago,
and will shortly have an office in New York.
' ■■■■■ ' ■' ■ ' ——————
The Black Diamond
Vol. 55. No. 10
CHICAGO
COLUMBUS
SEPTEMBER 4, 1915
NEW YORK
PITTSBURGH
$3.00 Per Year
Rail Rates and Pilot Fees Dwarf a Big Harbor.
Philadelphia, Pa., September 1st. — ■(Special
Correspondence.) — Philadelphia, as an Atlantic
seaboard coal port, has advantages over some
of her sister harbors — and then again she lags
behind. While other places are up and doing
continuously and everlastingly, Philadelphia takes
her natural advantages at their face value, toots
no horns and continues to ship her heavy ton¬
nage of coal to the four corners of the earth in
the complacent way that she has for a century.
One of the seeming disadvantages that con¬
fronts this port is the fact that the harbor is
103 miles from the Delaware capes.
From a coal shipping standpoint this distance
is offset by the fact that every mile toward Phila¬
delphia by water is a mile nearer to the source
of coal supply. Argument that ports of the old
world are sixty to eighty miles from the salt
water and that navigation for the distance is
cheaper than land transportation should hold good
in presenting the claim of Philadelphia.
Yet this point for Philadelphia is offset by
freight rate differentials that favor southern ports
and also by high pilotage fees. And, if it must
be told, it is offset by the fact that Philadelphia’s
giant influences have never been set in motion
to see that the trade which now goes elsewhere
should be concentrated here.
An editorial in the Evening Telegraph of July
7th aptly describes the attitude of this city. It
said ;
“It is not shown or claimed that the Oregon
and California Shipping Company selected Phila¬
delphia as a port for its vessels because of any
united action by the city’s business interests to
bring the new line here.
“Philadelphia was chosen solely because of its
innumerable natural advantages as a center of
maritime commerce. This statement does not
overlook the public pier at the foot of Dock
street, nor the deeper channel being dredged,
neither of which may be credited to those un¬
official agencies which in Baltimore, Boston and
Mew Orleans labor successfully to develop their
own ports.
“Every time this harbor is chosen by ‘natural
selection’ it indicates how swift its development
will be when the city’s business interests unite
to exploit it.”
Philadelphia has a great harbor that makes it
the second port of importance in the United
States. This was created through no combined
effort. It is the embodiment of no public spirit.
It is not even a product of design. Rather, like
Topsy, “it just growed.” Nature and the Penn-
Philadelphia Has Natural Advantages,
But These Are Offset in Part by a Lack of
Any Concerted Action to Advantage by
Them.
sylvania Railroad made it. Philadelphia had noth¬
ing to do with it.
And yet, despite its natural advantages, the
Quaker City has been slipping in the matter of
tonnage in coal. It is losing in the transshipment
of the greatest of Pennsylvania’s products. This
means that it is falling back all along the line.
Only a slight increase in tonnage has been made
in five years. In that time Baltimore has in¬
creased her tonnage by leaps and bounds. Lam¬
bert’s Point and Sewall’s Point have made stag¬
gering increases each year. That is, the offshore
business has grown, but Philadelphia has not
done her share. This can be accounted for on
one of two grounds only :
First, Philadelphia is not equipped to handle
coal, or
Second, it has not tried — through animated
public action — to do it.
Which of these two things is true?
Philadelphia is equipped to handle a tonnage
half as big again, and then some, than passes over
its piers today. Tier harbor equipment has never
been tried and found wanting. As a coal port
she has never been tested to show full strength.
In fact, Philadelphia does not know her own
strength. The fault does not lie in the lack of
machinery.
But what about the other phase of it? Has
Philadelphia lost ground because of a lack of
public spirit? Recently the local daily papers
let out an awful squawk because the government
coal tonnage in its navy contracts was taken
from this port. A call was issued to all public-
spirited organizations to get busy. And there
it ended. There was just a call — but no response;
no action ; no anything. That is why Phila¬
delphia has lost. It has no public spirit or at
least no organization of it.
This is the reason for the statement that Phila¬
delphia’s trade is like Topsy— “it just growed.”
But, the point is, it did grow. For instance,
Philadelphia as an export port has had a grad¬
ual growth for ten years. Yet, with the coming
of the war, her coal exports showed a falling
off instead of a gain. This reversed the pro¬
gram of some of the other shipping ports. In
1913 the shipments of bituminous coal were 915,-
145 tons, as against 649,301 tons in 1914. The
export figures for the past ten years follow : '
TONS.
Anthracite. Bituminous. Total.
1905 . 40,414 703,420 743,840
1906 . 39,098 603,151 642,241)
1907 . 48,541 879,117 927,718
1908 . 55,823 741,891 797,714
1909 . 64,499 767,284 831,783
1910 . 72,733 794,015 866,748
1911 . 52,984 791,506 845,490
1912 . 53,754 825,234 878,988
1913 . 63,481 915,145 978,626
1914 . 56,628 649,201 705,829
But export business is not the “long suit” of
the port of Philadelphia; it is the coastwise
trade in coal. Flere is the really big business
of the port. Nothing can better show it than
the figures for 1914, when 1,392,182 tons of an¬
thracite and 1,808,493 tons of bituminous coal
were moved by ocean to other cities within the
boundaries and possessions of the U. S. A.
In connection with this immense movement of
anthracite coal through the Philadelphia harbor
it might be well to remind the reader that the
Philadelphia & Reading transportation line oper¬
ates one of the most complete coal moving fleets
in the world and transports an immense ton¬
nage of hard coal to the New England states
every year. This fleet consists of thirteen sea¬
going tugs of 400 to 644 registered tons and
1,000 individual horsepower each. Also there arc
seventy-five seagoing barges of a carrying capac¬
ity averaging 1,058 tons each. The fleet has
a maximum carrying capacity of 2,600,000 tons
of coal annually.
Dan C. Kingman, chief of engineers of the
L'nited States army, once said :
“A perfect harbor is a natural place where rail
and water routes meet and exchange commodi¬
ties. This presupposes (l) a center of produc¬
tion which ships through that point; (3) rail
transportation to the water edge; (3) docks over
which to transfer the goods ; (4) a safe place
for the anchorage of ships; (5) ships calling
at that point, and (6) a market beyond for the
goods thus moved.”
Philadelphia has the anthracite fields nearby
and some bituminous fields not far away. It
has some of the best railways in the world. It
has all of New England and the southeastern
states as a market. It has tidewater facilities
at an inland city. And it has the docks. The
piers are, in fact, the center of the whole sys¬
tem. Of these there are three. Port Richmond
has the largest acreage and handles export busi¬
ness originating on the Philadelphia & Reading
Piers at Greenwich, the Gateway "Between the Mines and the Foreign Markets of the ’World.
182
THE BLACK DIAMOND
[September 4
Section of Pier No. 3 at Greenwich, Showing Dockage and Power Equipment.
Railroad, the New York Central, the Western
Maryland and other coal producing roads. The
Port Greenwich piers are devoted to the han¬
dling of coal from the Pennsylvania lines exclu¬
sively, while the Jackson street piers are the
property of the Baltimore & Ohio Railway.
Port Richmond.
Conservative Philadelphia is not given to mak¬
ing any idle boasts. So when the harbor com¬
missioners and the men at the Philadelphia &
Reading freight terminal tell the layman that at
Port Richmond is the “largest single freight
depot in the world” you have to take it that
this is no “common barroom jest.”
They concede — still conservative, you see —
that there are combinations of yards where the
tonnage may be larger, but for the yardage alone
they take their hats off to none. Here are some
figures :
The yardage of Port Richmond is 151 acres,
about one-half of which is devoted entirely to
coal loading, discharging and storage.
'I he yard has a capacity of 4,000 cars.
Immediately contiguous to, but not considered
a part of. Port Richmond is more track¬
age and smaller yards covering about the same
acreage and with a capacity also for 4,000 cars.
Port Richmond, like most everything in Phila¬
delphia, is no upstart. A volume could be
written of its history. It has a family tree.
In the late thirties of the last century canal
boats and other water conveyances that trans¬
ported coal found that this made a snug harbor
at the ends of the creeks and canals. There the
carters and wagon men of the city assembled to
get the coal.
In the early forties the trade in coal had
grown so much it was found necessary to build
piers for the accommodation of the boatmen.
These were makeshifts.
When the strenuous days of wartime — the early
sixties — arrived the coal business was beginning
to spread. The railways were then actively bid¬
ding for coal tonnage. The piers built to load
wagons began to load from boats to cars.
These cars were of from four to eight tons
capacity ; mule haulage was employed. Even in
these early days the strengthening of the piers
was considered a necessity. Also nrovisions were
made for transferring the coal that went to
Elizabeth and Port Reading, N. J., in canal
boats over the New York and Raritan Canal.
Along in the seventies colliers from New Eng¬
land ports began to put in an appearance and
were loaded with black diamonds. The largest
of these coal boats was in the neighborhood of
500 to 600 tons capacity.
In the early eighties the “Coxswain Green,”
a collier of 800 tons capacity, put into Port
Richmond. This visit was quite an occasion ;
so much so, in fact, that thousands of persons
journeyed to the port to see “that whale of a
boat.” Her advent forced the deepening of the
channel at piers 1 and 2 and a growth in the
equipment.
This took the form of eight wheeled coal cars
and brought into use small engines — known as
“wharf rats” — as motive power.
In the ten years that followed there was a
continuous growth of the piers and their equip¬
ment. Thus, by 1890, twenty-one piers stretched
out into the river, making their bid for the coal
business of the “Atlantic seaboard and the
world.” At the time these facilities were sup¬
posed to be the last word in modern dockage,
but how woefully short of the supposed perfec¬
tion they were is shown in the fact that only a
couple of them remain today and they are more
useful as antiques than as modern handlers of
coal.
In their place has come piers that would have
dazzled the coal handlers of a quarter of a
century ago. Pier 18 of the present is possibly
the “king bee” of the Port Richmond devices.
It rises sixty feet above the water level, is 765
feet long and is seventy feet wide. Four rail¬
way tracks run the entire length of this pier.
The “well” principle is used for the transfer¬
ence of the coal from the cars to the boats along¬
side. The coal flows upon itself through the
well with a minimum breakage. The length of
this pier permits the loading of boats at four
berths and lO.OO'O tons can be loaded from it in
ten hours.
Pier 11 was built in 1899 and rises forty-four
feet above the water level and is 765 feet long
by sixty-one feet wide. This also permits ves¬
sels of heavy draught to load there, for it has a
depth of twenty-eight feet below the mean water
level. This pier has a capacity of 30,000 tons,
with four tracks, atop which empties are run
back in the yard by a gravity system.
Pier 16 is thirty feet above the water level,
with a width of fifty-five feet at the top, and
is 320 feet in length, or just about one-half the
size of the two newer piers. This has two dump¬
ing tracks and a capacity of 10,000 tons.
Piers 4, 8, 10 and 12 are of the old type with
modernized equipment. These are used more for
loading barges, river craft scows and canal boats.
But so far as tonnage passing over them they
are not to be snickered at,i for when actively
engaged in coal loading they have a capacity of
from three to five thousand tons each.
Of the coal tonnage passing over the Port
Richmond piers the figures for last year show
that 4,950,000 tons were handled there. Of this
the volume of anthracite and bituminous is about
50-50 ; that is to say, half to each.
And of the coal that comes to Port Richmond
it is surprising that practically all of it goes into
bunkering, tidewater and export trade. Figures
show that only about five per cent of it is what
is known as harbor coal. This estimate is for
purely Philadelphia shipments and not “inside the
capes” ; that is, it is transferred to local factories
or to coal yards.
Add to this five million tons of coal, a little
matter of 3,500,000 tons of all sorts of export
freight and it can then be seen where the boast
that it is the “largest single freight station”
comes pretty near being right.
Before dismissing these piers as a factor of
Philadelphia’s harbor it might be well to state
that here is located one of the anthracite stor¬
age plants of the Philadelphia & Reading Coal
& Iron Company, which has a capacity of 180,000
tons, all of which is thoroughly equipped with the
Dodge system of coal storage.
Figures from the reports of the Interstate
Commerce Commission show that in 1914, 688
steamships, 136 sailing vessels, 1,514 barges and
9,223 canal and river boats were served over
these piers.
Port Greenwich Piers.
The history of the Greenwich piers, controlled
by the Pennsylvania Railroad lines, is a little
bit hazy. Since the early forties the section of
Greenwich Point whereon the piers stand has
been used as a coal dockage and wharfage for
retailers, canal boats and later the railways. To¬
day the Pennsylvania Railroad owns a battery of
five coal piers on the location, over which 2,500,-
000 tons of coal go annually.
The oldest of the piers dates back to 1868
and is Pier No. 1. It is like the Kentuckian’s
rifle; it has had all sort of additions and better-
T'cnts and hardly a piling of the original timbers
remain. But it’s the same old location and is
still known as Pier No. 1. This is above Pol¬
lock street and is used for coastwise and foreign
coal loading. It is 100 feet wide by 500 feet
long, has four tracks, with a capacity of forty
cars. Its water depth is twelve feet on the
north side and ten feet on the south at mean
low water.
Pier No. 2 has a length of 500 feet and is sixty
feet wide, has four tracks and a capacity of forty
cars. Its water depth is the same as No. 1.
The location of Pier No. 4 is at Packer street
and this is sixty-two feet wide by 725 feet long.
The depth of this is twenty-four feet on the
north side and twenty-six feet on the south side
at mean low water. It is equipped with four
railroad tracks and has a capacity of forty-fouF
cars.
Pier No. 6 is the same width and length as that
of No. 4 and has the same water depth. Its
trackage, however, is three across and the capac¬
ity is thirty-six cars.
All of the foregoing piers are used only in
case of emergency: that is to say, when the
tonnage called for on Pier No. 3 is burdensome
or when trimming a vessel on the higher pier
interferes with its efficiency.
No. 3 pier is the kingpin of the Pennsylvania
lines equipment. This is sixty feet wide at the
top and is 800 feet long and has twenty-six
feet depth on the north side and twelve feet on
the south. It has one railroad track to feed a
McMyler car dumper and another to run the
empties off the pier. The dumper works at a
capacity of 1,500 tons an hour and can be
No. 10]
THE BLACK DIAMOND
183
operated day and night. The dumper equip¬
ment was placed in operation on October 1, 1913,
after two others installed in their South Amboy
piers previously were found satisfactory.
In .addition to the dumper the road has also
installed a thaw house for winter loading of
coal. This has a capacity of thirty-two cars
and frost can be driven out in from thirty to
forty-five minutes by the application of a hot air
system that drives the heated atmosphere in at
the top of the cars and draws it off by fan system
from underneath. By this system moisture is
obviated and moisture is the bane of the coal
boatman’s life in the winter.
The yardage about Port Greenwich has a ca¬
pacity of 2,700 cars, though the limit on loaded
coal cars there is placed at about 2,000.
Of the coal that is loaded through the Green¬
wich piers, 2,50'0,000 tons yearly, about eighty-
five per cent is bituminous coal and the rest is
anthracite. There is a distribution of about thir-
tv-five per cent of this made “within the capes,’’
that is, on the Delaware River, its branches,
creeks and tributaries and the canal svstem at¬
tached thereto.
Jackson Street Piers.
Technically the outlet for the Baltimore &
Ohio Railway is known as Pier 81 of the South
Delaware wharves. With the entrance of the
Baltimore & Ohio into Philadelphia, coal piers
were established at the foot of Dickinson street.
These proved wholly inadequate, so orders were
given to erect a pier “that would take care of
the biggest vessel afloat,” and the Jackson street
site was chosen. No sooner was it erected than
river men said that it would be a “fizzle.” And
they knew more than the high-priced architect
who drew the design. Time after time additions
have been made, the tracks have been raised, but
the pier has always been a disappointment. To¬
day its size is forty-two feet wide by 574 feet
long, with a fourteen-foot depth at mean low
water. Its equipment is two tracks, with a ca¬
pacity of twenty-four cars.
There was a time when 150 car? of coal a
day went over this pier, but this has dwindled,
so that fifteen cars is reckoned a good day’s
work now. In fact, only about 150,000 tons of
coal went over these piers last year.
There is a good foundation for a rumor that
has been afloat for some time that rier 81 will
eventually pass into the hands of the city and
will become one of the big chain of modern
docks that has been talked about here for many
years. In that event the coal handling plant of
the Baltimore & Ohio will be moved to a new
railroad yard contemplated for the betterment
of South Philadelphia. This location is close to
the League Island navy yards and may mean
the building of a new series of docks in that
part of town.
. The Commercial Docks.
In reviewing harbor facilities it would hardly
be right to dismiss the subject without a word
as to dockage of other corporations than rail¬
ways.
Shipping men have covered column after col¬
umn with comparisons between the use that firms
abroad put their water frontage to and the
wanton disregard of dock values by the average
American concern. Now, everything is good and
bad by comparison. Also all comparisons are
odious. So it is no light matter to sum up
Philadelphia’s harbor discharging possibilities.
There might be more of them and rrood use
could be found for the increase. More atten¬
tion might be paid to public docks for coal
transference — and there you are !
The city, so far as docks are concerned, is
divided into “north of Market street” and “south
of Market street.” “Going north” twenty years
ago, there were scores of small piers and even
public dockage. These have practically disap¬
peared. At Susquehanna avenue two docks —
those of Hughes and Patterson and the Lennig
dock — occasionally take off coal. Private docks
are those of the Pennsylvania Sugar Refinery
of fair size and having a “clamshell” digger; the
J. W. Patton Company, foundry supplies ; the
Cramp shipyard. At Palmer street the Ameri¬
can Can Company has a coal dock that is used
only at the height of their season. The Phila¬
delphia Rapid Transit Company and the Twenty-
fifth Ward Gas Works are two of the heaviest
coal users “north of Market street.” Both plants
have two “diggers” operated by steam power.
The waterworks station at Torresdale and at
Gardner’s Point have coal handling devices on
the docks. Recently an appropriation was ap¬
proved by which this plant will be extended.
“South of Market street” the city owns “Pier
Forty,” which could be and has been used for
coal transference. It has no coal handling equip¬
ment. Between that pier and Point Girard there
are only two docks of any size — those of the
Spreckels Sugar Refinery and the Pennsylvania
Salt Works.
Coming into the Schuylkill River, however,
privately owned dockage and equipment makes
coal handling one of the heaviest lines of water
traffic there. Most of this, however, is anthra¬
cite business and comes down through the canals
and direct to the retail coal companies’ elevators.
The United Gas Improvement Company has
a big digger on its docks with a capacitv of
1,000 tons a day. An idea of the wharfage facil¬
ities here can be gained from the statement that
from 25,000 to 30,000 tons of coal are always
on storage there.
Several paper mills, the Barrett Manufacturing
Company and Harrison Brothers, all have fair¬
sized docks, though the last named concern has
not used theirs for coal purposes for some
months. The Philadelphia Electric Company has
also a 1,'000-ton-a-day capacity digger and exten¬
sive wharfage for the supply of their plant.
Coming further west are the elevators and
wharfs of various retail coal companies, of which
the American Ice Company and the George B.
Newton Coal Company have the largest and best
equipped.
Pilotage Charges.
Pilotage on the Delaware River is an ancient
and honorable institution. Likewise it is costlv
for ships that fly a foreign flag. With a com¬
fortable channel of thirty feet depth from tide
to the harbor, the pilotage in some instances
costs about as much as the coal taken into the
bunkers. That is one of the great drawbacks.
There is no disposition on the part of the
pilots, who have thrived on the 103 miles of river
course, to give up their lucrative calling. The
statement from Mobile by the pilots there that
they would forego their fee to get coal business
for that port brought a long-lipped sneer from
the gentlemen of the calling of this port.
Pilot service was established on the Delaware
River in 1788 and the present close corporation
of about eighty men in the service was formed
under the style of the “Pilots’ Association” in
1896. Prior to this, with headquarters in Wil¬
mington and authorized by the state of Dela¬
ware, there was another association and it was
possible to get pilot service at a rather nominal
rate. Here is the fee rate established for the
service
tion :
Feet in
of the
members of
the present
associa
Draught.
Inward.
* Inward. t
Inward. t
Outward.
8
35.20
32.00
28.80
32.00
814
37.40
34.00
30.60
34.00
9
39.60
36.00
32.40
S6.00
914
41.80
38.00
34.20
38.00
10
44.00
40.00
36.00
40.00
10 54
46.20
42.00
37.80
42.00
11
48.40
4 4.00
39.60
44.00
Feet in
Draught.
Inward.
1114
50.60
12
52.80
12 54
68.75
13
71.50
1354
74.25
14
77.00
1454
79.75
15
82.50
1554
85.25
16
88.00
1654
90.75
17
93.50
17}4
96.25
18
99.00
1854
101.75
19
104.50
1954
107.25
20
110.00
2054
112.75
21
11 5., 50
2154
118.25
22
121.00
2254
123.75
23
126.50
23 54
129.25
24
132.00
2454
131.75
25
137..50
2554
140.25
26
143 00
2654
145.75
27
148.50
2754
151.25
28
154.00
28
156.75
29
159.50
Inward. t
Inward, t
46.00
41.40
48.00
43.20
62.50
56.25
65.00
58.50
67.50
60.75
70.00
63.00
72.50
65.25
75.00
67.50
77.50
69.75
80.00
72.00
82.50
74.25
85.00
76.50
87.50
78.75
90.00
81.00
92.50
83.25
95.00
85.50
97.50
87.75
100.00
90.00
102.50
92.25
105.00
94.50
107.50
96.75
110.00
99.00
112.50
101.25
115.00
103.50
117.50
105.75
120.00
108.00
122.50
110.25
125.00
112.50
127.50
114.75
130.00
117.00
132.50
119.25
135.00
121.60
137.50
123.75
140.00
126.00
142.50
128.25
145.00
130.50
Outward,
46.00
48.00
62. .50
65.00
67.50
70.00
72.50
75.00
77.50
80.00
82.50
85.00
87.50
no. 00
92.50
95.00
97.50
100,00
102.50
105.00
107.50
110.00
112.50
115.00
117.50
120.00
122.50
125.00
127.50
130.00
132. .50
135.00
137.50
140.00
142.50
145.00
north of Hereford Inlet Lighthouse
wick s Island Light.
or south of Fen-
tlf spoken inside of Five Fathom Lightship and out-
lopen'’Lighf Light to Cape Hen-
Jlf not spoken until inside of line drawn from Cane
May Lignt to Cape Henlopen Light. ^
Freight Rates.
Railway tariffs cause more head scratching
^Lout a coal man’s office than any other thing.
Phdadelphia is not exempt. In fact, many de-
^ the tariffs to this city have done
much to divert business to other ports. They
point to the seyen-cent differential that favors
Baltimore on tidewater business as being the
cause of the coal tonnage there increasing by
leaps and bounds.
Three zones from the bituminous fields that
serve Philadelphia with Pennsylvania soft coals
carry different rates. The first is the bitumi¬
nous or Clearfield zone, carrying a rate of $1.60
a ton. The second the semi-gas or Greensburg
rate of $1.70 a ton. The third is the gas or
Westmoreland rate of $1.85 a ton.
The anthracite fields also carry different rates
for different zones, but to attempt to explain
these would lead to endless complications.
Going back to the bituminous, there enters
the tidewater rates and taking the Greensburg
rate as an example, the freight rates run $1.70
for rail delivery in the city, $1.45 for pier de¬
livery for disposition inside the capes and $1.25
for deliveries for outside the capes. In other
words, the foreign buyer, whether the coal is for
export or bunker, gets a rate forty-five cents
cheaper than the man whose coal pomes all
rail to his siding in the city.
The twenty-five cents difference between the
all-rail and the pier delivery for local coal has
been the mainstay of the lighterage people and
the cause of a number of the firms who have
wharfage on the river buying their coals at the
piers instead of by track delivery.
With lighterage at a dime or less on the ton,
some of the business people have been able to
save ten to twelve cents on the ton.
Lighterage charges in the local harbor are, as
in any other port, on a sliding basis, controlled
by the laws of supply and demand. The set rate,
however, is ten to twelve cents a ton for coal
within the Philadelphia harbor lines and thirteen
cents for delivery on the Schuylkill River. This
applies to a minimum of 350 tons. The lighters
run from 100 to 1,200 tons in capacity. The
lightering companies and the number of boats
controlled are as follows : Delaware River Light¬
ering Company, nine; Schuylkill Transportation
Company, seven ; S. J. Gocher, fifteen ; Daniel
Junk, twelve; Estate of R. S. Oliver, seven; Bcr-
iprd Tucker, twenty: Hagen & Co., three: Wil¬
liam Donaldson, thirteen.
Stevedoring into bunkers is done at the rate
of thirtv-five to forty cents a ton for work in
the harbor. Only two firms are engaged in this
line of work here and their equipment is both
of modern and near-modern. M. P. Ilowlet has
five cranes of the new clamshell digger type and
twelve of the old style bucket, man-shoveled type,
and the Delaware River Discharging Company
four clamshells and four buckets.
The smaller machines with the men shovelers
will discharge about thirty tons an hour and the
grabbers about 100 tons an hour.
184
THE BLACK DIAMOND
[September 4
Electricity in Mines— Growth and New Uses.
The application of electric current to the vari¬
ous power requirements of coal mining has be¬
come so general that the question of its use is
no longer as regards its practicability, but rather
as to its superiority over other forms of power.
Economy of operation and maintenance is the
prime consideration that confronts the engineer
in the determination of the form of drive to be
used in the various parts of the system.
The gain in economy through the substitution
of electric power for steam is typified by the
results obtained by a shaft operated mine in the
By John A. Randolph.*
The Author Sketches the Progress
Made by Electricity, Hints at Central
Power Plants and Gives a Table of Costs.
the cost of production to the extent of from
ten to twelve cents per ton.
The accompanying chart taken from a paper
The Jeffrey Arcwall Cutter Entering Room Under Its Own Power.
ciliated savin.gs effected by the use of electricity
as compared to steam in a certain shaft mine
with an average daily output of 1,100 tons :
COST BASED ON ONE MONTH OF THIRTY DAYS.
ITEMS INCLUDED IN COST.
Tlnee engineers at $85 .
Two firemen at $75 .
One helper at $50 .
Five hundred tons of coal at fifty Vents
per ton .
Oil, waste and packing . .!!!.!!
Boilers:
Total
Amount
Saved
With
Pur¬
Present
chased
Cost.
Power.
$ 255.00
$110.00
150.00
150.00
50.00
50.00
250.00
250.00
50.00
40.00
Cost, including stack . $4,000.00
Feed pumps . 200,00
Setting and foundation . 800.00
I'eed water heater . 400.00
$5,400.00
Interest at five per cent . 22.50
Depreciation, seven per cent . 3150
Repairs and upkeep . 50 00
Insurance . 10.00
Boijer Building:
Interest at five pci cent . 8.35
Depreciation at five per cent . 8!35
Upkeep and repairs . 5V0
Engines:
Cost, two generator engines. .$3,000.00
Hoist engine . 1,500.00
Fan engine . 600.00
Eletator engine . 200.00
Screen engine . 150.00
Conveyor engine . 100.00
Pumps . 400.00
Machine shop engine . 150.00
$6,100.00
22..50
31.50
50.00
10.00
8.35
8.35
5.00
middle west, as cited by a prominent electrical
society. Electric power was applied to practi¬
cally all of the machinery. A steam hoist was
replaced by one which was electrically driven.
In 1911, with steam operation, 82,000 tons of
coal were produced. Of this amount 1,800 tons
or 2.3 per cent were used for fuel. The value
of this fuel was $1,800.
In 1912, after electric power had been adopted,
105,000 tons were produced. The power was pur¬
chased from a central station and cost $2,362 or
2.24 per cent of the average value of the coal
hoisted. The power bill thus practically equaled
the value of the fuel formerly used with steam
and in addition a complete saving was effected
in the labor of firing the boilers. There was
also a considerable reduction in fixed charges
on capital investment, owing to the fact that the
power was purchased outside, thereby obviating
the necessity of installing a large amount of gen¬
erating equipment.
The use of electric power in the primary
workings of coal mines is rapidly increasing.
Compressed air in the coal cutting has here¬
tofore been extensively used, but it is now being
supplanted by electricity, owing to the lower
cost of operation, the simplicity and flexibility
Chart .Showing Number oe Coal Mining Machines in
Use and Percentage oe Coal Production Mined
BV Machines.
A = Total iiiiiiiber of coal-miniiig machines in use.
B = Percentage of total of coal production mined by
machines.
C — Compressed air pick machines.
D = Electric machines — all types.
E =: Continuous cutting electric machines.
of the electrical connections and to the broader
range of adaptability. 'J'he electric cutting ma¬
chines are giving better satisfaction than those
driven by any other form of jiower. It is esti¬
mated from the results obtained in a large num¬
ber of mines that the electric coal cutter reduces
presented by Mr. S. B. King before the Ameri¬
can Institute of Mining Engineers shows the
relative numbers of coal mining machines in use
in the United States by years from 1891 to 1912.
It will be observed that since the year 1910 the
number of electric machines has exceeded those
of the compressed air type.
The Breast Cutter.
Several types of electric cutting machines made
by the Jeffrey Manufacturing Company of Co¬
lumbus, Ohio, are shown in the illustrations.
The following table, taken from a paper read
by Graham Bright before the American Institute
of Electrical Engineers, shows by items the cal-
Interest at five per cent .
Depreciation at six per cent . !
Upkeep and repairs .
Building:
Cost . $2,500.00
Interest at five per cent .
Depreciation at five per cent .
Upkeep and repairs .
Piping:
Cost . $1,500.00
Interest at five per cent .
Depreciation at seven per cent .
Upkeep and repairs .
Generator, switchboard and
wiring:
Cost . $2,640.00
Interest at five per cent .
Depreciation at five per cent .
Upkeep and repairs .
Superintendence .
Taxes at one per cent of valuation (as¬
sessment ninety per cent) .
Liability insurance at $1.33 per $100. .
Overhead .
25.40
30.50
30.00
10.40
10.40
5.00
6.25
8.75
15.00
11.00
11.00
15.00
25.00
15.00
6.05
50.00
Total cost . $1,165.45
Fixed charges . 284.40
Operating expenses . 881.05
25.40
30.50
30.00
6.25
8.75
15.00
11.00
11.00
15.00
7.50
4.15
$900.25
The solution of the question as to whether
the electric power shall be generated in a pri¬
vate plant or purchased from a central station
depends largely upon the proximity of a central
station and upon the rate that can be secured.
Central station service has proved very satis¬
factory to mine operation and many prominent
mining companies are giving it the preference
over the isolated plant.
In coal mining, as in other industries, electic
current is revolutionizing power methods, hence
it seems reasonable to predict the time when
its use in this field will be universal.
L ."7*
. . .
i u t
*Of the Society for Electrical Development, Tnc., New
York City.
The Jeffrey Mechanical Loader Ready to Load Coal.
THE BLACK DIAMOND
185
No. 10]
How the Nation Can Help Shippers.
J. A. Renahan, vice-president and general man¬
ager of the Smokeless Fuel Company of New
York, has cleared the air as touching the mer¬
chant marine with one shot. He says in sub¬
stance :
“America is not interested in ships per se, but
in getting America’s products carried at a rate
which will allow them to sell.
“If the Government could for a few years
operate ships it would find what changes in the
laws are needed to allow them to compete.”
His suggestion is contained in a letter to Hon.
William G. McAdoo, secretary of the treasury,
Washington, D. C., on August 17. It follows :
“In connection with the forthcoming investi¬
gation by the interstate commerce commission of
ocean transportation facilities and rates and the
probability of the ship purchase bill coming be¬
fore the next session of Congress, we would
like to present in a measure our views on exist¬
ing conditions and suggestions directed toward a
remedy.
“The end to aim at, we believe, is the move¬
ment to the fullest extent of the outnut of the
American producer and manufacturer to com¬
petitive territory on a relative rate parity, giving
due consideration to the haul involved and other
material features.
“The product of this country being the prime
consideration, passenger traffic should be a minor
or secondary consideration.
“We will not attempt to burden this letter
with statistical comparisons, but desire to illus-
rate the point of rate parity in connection with
the item of coal.
“The rate at present from Cardiff to the River
Plate is approximately twenty-two shillings ster¬
ling, and from Atlantic range ports to the Plate
thirty-four shillings, a difference against Ameri¬
can coal of about $2.75 per ton, notwithstanding
the shorter haul lies with the American product.
“To depend upon private ownership to bridge
this gap would mean the clearing away of the
impediments of existing regulations that stand
Locomotive and Car
Last week, we commented to the effect that,
everything considered, a car shortage for the
movement of coal this fall and winter is inev¬
itable. That is, we showed that the railroads
have only about 80 per cent of normal carrying
capacity, but are likely to be called upon to move,
in the succeeding threee months, about 125 per
cent of the normal amount of coal. This indicated
very naturally a shortage of railroad equipment.
Within the week, we have received one fact
and one opinion supporting this view. The fact
comes from one of the large operators in Frank¬
lin county, Illinois, who reports that a pinch in
the car supply is already in evidence. He has
been watching the movement of coal away from
his mines for the last two or three weeks to
detect the first suggestion of transportation diffi¬
culty. He says now that the railroads are short
of engines even though, for the time being, they
have plenty of cars. This is indicated in this
way.
The railroads, serving his mines, are quite busy
moving the crops to market. They only have a
certain number of locomotives and many of these
are kept busy on the grain movement. They
haven’t enough engines to haul coal cars and
consequently many cars from his and adjoining
mines are held on sidetracks and are being de¬
layed indefinitely.
He points the obvious lesson from the fact
which is that the cars held on mine sidings,
whether loaded or empty, subtract from the num¬
ber of cars available at the mines. This means
in the first instance a slow movement to market
and in the second instance a slowing down of
production at the mines. Thus he comes to the
conclusion that a shortage of rolling stock al¬
ready is in evidence.
An opinion supporting this same view is ex¬
pressed in a circular just issued by C. A. East¬
man, of the Eastman-Barber Company. He calls
atttention to the fact that the lower anthracite
rates in the east do not go into effect until the
1st of October. He believes that there will be a
reduction in price on anthracite coal in the east.
He believes that the average retailer, expecting
this reduction, will not buy coal with any free¬
dom until after the rate goes into effect.
He points out that the territory affected by
this low rate, absorbs eighty per cent of all the
as hurdles in the competitive race between the
American merchant marine and the foreign. Busi¬
ness is possible at the present time only because
of shrunken values of the American product
and swollen values of the foreign. With deflated
values of the foreign product under normal con¬
ditions the American product is shut out.
“Were the American merchant marine today
one hundredfold its present size it is a matter
of sincere doubt if the American producer could
safely look to it for protection in rate parity,
but more likely that it would follow the basis
fixLed by British shipping as applying to the move¬
ment of American product seeking competitive
territory.
“If it be admitted that today capital under pres¬
ent United States maritime regulations will not
seek investment under the United States flag,
then the producers of the United States stand
at the mercy of the foreign shipping and when
the foreign owner so elects, our product may
move spasmodically at the highest rate the traffic
will bear, and the proceeds go to a foreign
treasury.
“Should not the ship purchase measure, then,
be the plank to grasp? The producer, manufac¬
turer, merchant is interested not so much in who
does the hauling as that some one does or will,
and at a fair eompetitive rate.
“If, then, a ship purchase bill undertakes to
provide the purchase and operation of a com¬
mensurate fleet of cargo ships under competitive
rate conditions and employed in foreign trade,
the conduct of this business during two or three
years will more readily and forcibly demonstrate
what is needed in our laws to permit private
ownership to enter the same class of trade under
similar conditions at a profit.
“It may be argued that the purchase of exist¬
ing ships does not add one ton to the floating
tonnage, but it undoubtedly wdll add just that
much to the bottoms placed at the service of the
United States shipper at rates fixed by the Gov¬
ernment to meet foreign competition.”
anthracite coal. Therefore he expects a slowing
down in purchasing of anthracite for the next
month over this eighty per cent of the total
tonnage.
However, he believes that after the 1st of Octo¬
ber, the people in the east will buy with redoubled
energy. That is, they will try to make up in
October the coal which they did not buy and
move the latter part of August and in September.
Therefore he believes there will be a congestion
of eastern anthracite orders in October which
will take up about all of the coal available from
the anthracite mines.
By a very natural process of reasoning, Mr.
Eastman comes to the conclusion that there will
be a shortage of anthracite coal for western de¬
livery after the 1st of October. He therefore
advises, in his circular, that dealers buy their
anthracite now.
Touching the bituminous coal situations, Mr.
Eastman is also of the opinion that we are going
to have difficulty in getting all the coal needed.
He calls attention to the labor shortage w’hich the
eastern mines already are experiencing and which
he believes will spread to the western mines. He
calls attention to the shortage of cars on all rail¬
roads and believes that this is going to increase
as winter approaches.
On both accounts, he is of the opinion that coal
purchases should be made early or the buyer is
likely to be disappointed.
Centralize Safety Work.
The impression seems to have been conveyed by
articles appearing in the technical journals that
the American Mine Safety Association has ceased
to exist. We are assured by President A. F.
Knoefel and by Secretary H. M. Wilson that
this is by no means the case, but that on the
contrary it is not only very much alive, but will
be more active than in the past thou.«h under
another name.
The recent ballot concerning the amalgamation
with the National Safety Council was almost
unanimously in favor of such action and we are
informed that the executive committee of the lat¬
ter also favors the taking over of the American
Mine Safety Association as their mining branch.
The effect will be to practically centralize all
safety movements within the National Safety
Council.
The American Mine Safety Association will
hold its annual meetiag as contemplated in Bir¬
mingham, Ala., September 3, and it is expected that
it will recess to reconvene October 20 at the an¬
nual meeting of the National Safety Council, in
the Bellevue-Stratford Hotel, Philadelphia, as the
mining section thereof. At that time there will
probably be elected officers and committees of the
mining section for the purpose of carrying on
the activities of the American Mine Safety Asso¬
ciation along identical lines to those heretofore
followed.
In addition the members will receive the weekly
safety bulletins of the National Safety Council,
its correspondence service on safety subjects and
there will be a decided strengthening of the local
branches through the opportunity to include in
their activities not only safety in mining, but also
in railways, manufacturing industries, public
service, etc.
This should, therefore, tend to strengthen a
national safety organization concerned in min¬
ing for the reason that heretofore the American
Mine Safety Association has not appealed
strongly to the metal mining industry because
that the latter is concerned in safety in the mills
and smelters and railways as well as in the mines,
whereas under the reorganization all of these
activities will be co-ordinated.
We are further advised that persons taking out
memberships in the American Mine Safety As¬
sociation prior to the consummation of the pro¬
posed consolidation in October will have the
privile.ges of membership in the larger organiza¬
tion for the ensuing year, but at the lesser rate
of membership dues called for by the American
Mine Safety Association.
British Coal Situation.
As predicted in these columns a short time ago,
settlement of the British coal situation has not
been permanent. The brilliant patriotic oratory
of Lloyd-George temporarily adjusted difficulties
of the miners. These have started afresh and the
decision of Walter Runciman has aggrieved the
miners, who find in the concession of higher
wages insufficient granting of their demands for
various ameliorations of conditions which they
are seeking.
Thirty thousand Welsh miners have gone on
strike; 200,000 more miners may follow them. In
view of the world coal situation, this is ominous.
War status depends upon coal supply. The Allies
look to Great Britain for their coal needs. Re¬
sults of the spreading of the strike would be ex¬
tremely dangerous for the war interests of the
Allies.
A new slogan has arisen in Great Britain ;
Miner slacks, nation lacks. In spite of control
of prices by the government, the danger of coal
famine, and with approaching winter, is seriously
feared.
To obviate this, it is felt that the government
must take drastic action. Coal falls into two
classes, “contract” and “free.” The former takes
from 70% to 80% of output. Pressure is, there¬
fore, felt on the free coals. In proportion to the
decrease of production in these free coals is the
approach to the vanishing point of coals for the
small consumer and the immense suffering that
this would entail.
^^’ar has taken from coal production 250,000
men. There are 750,000 men left to operate. The
miners are receiving record wages, with war
bonuses, and are working short time, as they are
able to make much in lessened hours. High
wages are thus decreasing production materially.
Average working time of the miner is forty hours
a week. Munitions workers are working 80 to
100 hours a week. The Eight-hour Act checks
increase of daily mine time. Domestic demand
is not met. Export trade is paralyzed. War
needs and Allies’ supplies are in jeopardy.
It is urged that the government suspend the
Eight-hour Act and, further, that it penalize
shirkers, and that the war bonuses be pooled each
week and distributed only among full-time
workers.
Conferences have been held between the Gov¬
ernment Exports of Coal Committee, representa¬
tives of the Mining Association of Great Britain
and of the various Coal Owners’ Associations
looking to the adjustment of all present ques¬
tions, complicated as these are by the Act limiting
prices, recently passed, and the subsequent regu¬
lations necessitating the obtaining of licenses for
the exportation of coals. — Wall Street Journal.
Shortage Is Inevitable.
186
THE BLACK DIAMOND
[September 4
«
Men Prominent in the Coal Trade’s Eye.
Van H. Manning.
On Saturday of last week the announcement
was made that Vannoy H. Manning has been ap¬
pointed director of the Bureau of Mines of the
Department of the Interior, to succeed Dr. Jos.
A. Holmes, who died some time ago. Prior to
his appointment he had been, first, assistant to
Dr. Holmes and then acting director of the bureau
during the illness of his chief.
On many accounts his appointment to this posi¬
tion is extremely gratifying to all members of the
coal trade and the mining industries as a whole,
and is considered exceedingly fortunate for the
government itself. From the point of view of
the public, this appointment is fortunate because
Mr. Manning is familiar with the work that has
been done since the inception of the Bureau, and,
therefore, can be
depended upon to
carry it on along
the same lines
which have made
the Bureau popular
and i mp o r t a n t
heretofore.
The second rea¬
son why his ap¬
pointment is es¬
pecially gratifying
is that his ex¬
perience has been
such as to qualify
him in a peculiar
way for the work
he will have to do.
He has been in¬
timately familiar
with every phase
of mining and is
trained in all of
the sciences which
the work of the
Bureau touches. A brief statement of his record
will make this apparent in an instant.
Vannoy H. Manning was born at Horn Lake
Depot, Alississippi, December 15, 1861. His father
was Vannoy H. Manning, Sr., and in his day
was powerful in politics, representing the second
Mississippi district in Congress.
Mr. Manning holds the degree of A. B. from
the University of Mississippi. He is married
and has two children.
At present he is a member of the American
Institute of Mining Engineers; Washington So¬
ciety of Engineers; American Mining Congress;
Cosmos Club (an organization of scientific men
in the government service at Washington) ; Na¬
tional Geographical Society ; Delta Kappa Epsilon ;
Twenty Years’ Topographers (an organization of
United States Geological Survey employees) ;
vice-president of the Home Club of Washington ;
Trowel Club (Masonic organization) ; and of the
Mississippi Society of Washington. These things
show something of the breadth of his interest in
scientific and economic matters. The actual work
that he has done presents a record which is far
more convincing.
For example, he is the author of a large num¬
ber of topographic maps of several parts of the
United States and of Bulletin No. 76 of the
Bureau of Mines, the title of which is “United
States Coals Available for the Export Trade.”
This latter report was issued in the fall of 1914,
with a view to assisting the American coal min¬
ing industry in the development of an export
coal trade with especial reference to Latin-Ameri-
can countries.
Eor more than twenty years he was engaged in
technical and scientific work under the Depart¬
ment of the Interior. Erom 1885 to 1910 he was
civil engineer with the United States Geological
Survey, engaged in topographic mapping in nearly
every state in the Union. In addition to scientific
work he has long held administrative positions in
the government service.
When the Bureau of Mines was established in
1910, Mr. Manning was appointed to an admin¬
istrative position in the bureau by Secretary Bal¬
linger, and, on January 1, 1911, was made assist¬
ant director ; he has been acting director of the
bureau in immediate charge of its work since
January 1, 1914, at which time Dr. Holmes, on
account of illness, had to relinquish active work
as director. During his service with the bureau,
Mr. Manning has had charge of methods re¬
lating to appointments, expenditures and the con¬
duct of investigations, loyally supporting Dr.
Holmes in every effort to make the Bureau of
greater service to the public, and, by attending
to a mass of detail, enabling Dr. Holmes to give
attention to matters of policy and to the co¬
ordination of the work of the bureau with that
of other government and private institutions or
establishments seeking to increase safety and effi¬
ciency in the mining, quarrying and metallurgical
industries. Since June 1, 1914, when Dr. Holmes
was obliged by failing health to relinquish his
duties, Mr. Manning has had charge of all the
technological investigations, being conducted by
the bureau, of the operation of its mine-rescue
cars and stations, and of the educational work of
safety and health that the bureau is conducting in
the mining and metallurgical districts of the
United States.
George E. Hutchison.
B. L. Shepard and G. E. Hutchison have
opened an office as public accountants under the
firm name of Shepard and Hutchison in the Old
Colony building. This item is of especial inter¬
est to the coal trade as both men are well known
accountants, particularly versed in coal account-
ing.
Mr. Shepard has been in business as a member
of the firm of Shepard & Chandler, and is one of
the best posted mining accountants in the coun¬
try, having devoted years to the study of the
practical and accounting problems confronting
George E. Hutchison.
producing companies. He was for several years
active in the Springfield field, prior to entering the
field of public accounting.
Mr. Hutchison, who holds a degree as a cer¬
tified public accountant from the examining board
of Illinois, has spent most of his business career
in the coal trade as a public accountant.
He has been interested for years in urging
the necessity for the improvement of cost sheets
and accounting for mining and retail companies
in order to produce accurate figures upon the
cost of producing and marketing the product.
He was for some time examining auditor of
several Ohio coal companies, coming to Chicago
some years ago as general auditor for the coal
interests of Jos. Leiter, and was until recently
secretary-treasurer of F. G. Hartwell Company.
Mr. Hutchison also spent several years in gen¬
eral public accounting work.
In view of the increasing interest among coal
men upon the subject of accounting, this firm
should prove of value to the trade generally.
F. B. Cortright Dies.
Philadelphia, September 2. — {Special Corre¬
spondence.) — Coal men of this city received a
severe shock when it became known early this
week that Frank Barton Cortright had died Sun¬
day morning after a very brief illness. Popular
among his trade associates, without a human
enemy and in the prime of life, his taking-off
could not be and has not been fully realized.
Frank Cortright came from a family that has
been identified many years in the coal business
of the state. Fif¬
teen years of his
life were put in in
his chosen trade,
and in that time
among all walks of
men with whom
he came in con¬
tact, his was a life
filled to the full
with kindly words
and deeds.
About five weeks
ago he was taken
ill in his office and
was ordered home.
An X-ray opera¬
tion followed and
his physical trou¬
bles were not
shown. Game, he
returned to his
work at the head
of the Cortright
Coal Company,
and, using his own words, “he fooled the doctors.”
Wednesday afternoon of last week he was again
seized by the malady that bothered him and was
hurried to the hospital where an operation for
appendicitis followed. Within a day complica¬
tions indicating pneumonia developed and this
was the direct cause of his taking off on Sunday
morning.
Mr. Cortright was born in Mauch Chunk thirty-
six years ago. After finishing his education in
public and private schools he started his career
in the coal business in the employ of the Logan
Coal Company of which his father was president.
After a connection with this company for several
years he joined the forces of Righter & Marshall,
and later he was secretary and treasurer of W. A.
Marshall & Company.
Six years ago he formed a partnership with his
brother, Harry K. Cortright, who was also asso¬
ciated with him in the firm of W. A. Marshall
& Company, and the formation of the Cortright
Coal Company followed.
While Mr. Cortright gave all of his time and
attention to the Cortright Coal Co., since that
time, he was an officer and director in the Beaver
Run Coal Company, as well as several other
operations in Pennsylvania and West Virginia.
Socially Mr. Cortright was a member of the
Racquet Gub of Philadelphia, a Scottish Rite
Mason and a member of the Lu Lu Temple, as
well as a member of other organizations.
A year ago Mr. Cortright was married in Vir¬
ginia. His widow and a five-months-old son sur¬
vive to mourn his loss.
The funeral was held on Wednesday after¬
noon from the residence of his father and mother,
Mr. and Mrs. N. D. Cortright in Mauch Chunk.
Quite a large number of coal men from this
city were present as the last sad rites were said.
A beautiful floral token was the last good-bye
of those in the trade. ,
J. & T. Hurley of Detroit have been awarded
the contract for supplying about 100 tons of
anthracite furnace coal to the board of educa¬
tion of Grosse Pointe village. The firm’s bid is
reported as $6.95. Delivery of sixty tons is to be
made at the Cadieux school and forty tons at the
Trombly school.
THE BLACK DIAMOND
187
No. 10]
Want Coal Lands Sold.
At the call of Daniel B. Ely, who, it is said,
owns a substantial amount of the Wabash-
Pittsburgh Terminal securities, about twenty-
five of the first mortgage bondholders held
a meeting at his office in New York on Mon¬
day to protest against the reorganization
plan which call for an assessment of $300
per $1,000 bond.
Mr. Ely, who acted as chairman of the
meeting of the minority bondholders, said
that unless there was a modification of the
reorganization plan he would demand that
the property be liquidated. He added that
there were outstanding $7,000,000 in notes
issued by the company against its coal hold¬
ings, which had been turned over to the
Wabash Railroad Company. These notes
fell due some time ago and were taken up
by bankers. Mr. Ely pointed out that if some¬
thing was not done promptly the holders of
the Wabash-Pittsburgh Terminal Railroad
would lose their equity in the coal lands. He
also objected to that clause in the reorganiza¬
tion plan which gave the second mortgage
bondholders the right to subscribe to the new
bonds which were not taken by the first mort¬
gage bondholders and complained of the plan
to allow the reorganization committee to
choose the first directors of the company.
He suggested that the coal properties be
sold at once, saying that he knew of one large
corporation that wanted them. He thought
that $7,000,000 would be realized in the sale of
the properties and believed that with this the
railway could be rehabilitated. Mr. Ely also
said that it would be fairer to have a board of
ten directors elected from among the bond¬
holders, each representing $’3,000,000 in bonds.
Albert Rathbone of Joline, Larkin & Rath-
bone, counsel of the protective committee for
the first mortgage bonds, surprised the bond¬
holders with the statement that the receivers’
certificates were unpaid and that an action for
foreclosure on the property and its sale as a
result of the non-payment would soon come up
in court. He said that he was willing to see
another plan substituted for the present one if
a better plan could be devised. He told the
bondholders that their equity in the coal lands
was secured only through a verbal agreement.
A committee of five was appointed to co¬
operate with the Philadelphia committee and
also to find a purchaser for the coal lands.
Resolutions were passed condemning the re¬
organization plan for the property as inequit¬
able, harsh, illegal, unfair and oppressive.
Coaling Plant for Honolulu.
On last Thursday, cables received at New York
told of the signing at Honolulu, Hawaiian Islands,
of a contract for the construction and equipment
of a coaling plant, to have a storage capacity of
165,000 tons. The cost will exceed $1,000,000.
The Inter Island Navigation Company of Hono¬
lulu will operate the plant, and it is understood
that the purpose of same is to provide bunker
coals for ships that pass through the Panama
canal. The contract was secured by the C. W.
Hunt Company of New York, President E. L.
Moen of this company going to Honolulu early
in August to consummate the deal. 'Until his
return, it will not be known just what will be the
particular type of plant that will be constructed.
The Hunt Company are now building part of the
coaling plant for the Panama canal.
New York coal men interested in exporting
and supplying bunkers say that the Honolulu
plant will carry Australian coal for the reason
that it can be secured so much cheaper than the
American coals. They advance the opinion that
in this way Australian coals will take away con¬
siderable business from the coal depots that will
be maintained at the canal, and which will carry
American coals.
No coal can be shipped from the Atlantic sea¬
board ports to Honolulu except in American bot¬
toms, Hawaii being an American possession.
Furthermore, coals passing through the canal
would have to pay toll. Thus the Honolulu com¬
pany will be able to secure vessel tonnage for
transportation of coal from Australia on a com¬
petitive basis, and will have no canal charges to
pay. Moreover, it is probable that they can take
coal from British Columbia.
It will require fully a year to build the new
plant. In the meantime, bunker requirements at
the canal are increasing, and the Panama Railroad
Company is this week securing bids on 500,000
to 600,000 tons, which they estimate will be the
tonnage that will be required by steamers taking
bunkers at the canal during the next twelve
months.
Mr. White’s Farewell.
President John P. White of the United Mine
Workers left the anthracite region early this
week for his home in Indianapolis after mak¬
ing a thorough canvass of the three anthra¬
cite districts, in which time he delivered sixty-
eight addresses. In the three districts he ad¬
dressed 260,000 miners. Seven weeks were re¬
quired in this campaign, which had for its pur¬
pose the enrollment of new members and to
create more enthusiasm among those already
paying union dues.
Before leaving, Mr. White gave out the fol¬
lowing statement:
“I have always entertained high hopes that
the anthracite mine workers would perfect
their organization and as a result secure the
fundamental reforms in their work for which
the United Mine Workers of America have
struggled for many years to secure for them.
“The splendid growth of the organization
in the anthracite region during the past three
years and the result of the membership cam¬
paign that we have just concluded will, in my
opinion, perfect the union into a 100 per cent
organization before contract negotiations are
again opened with the operators.
“The public in general as well as the press
is in thorough accord with the anthracite mine
workers. In fact there is no real opposition
to the United Mine Workers in the entire re¬
gion.
“The prospects for continued peace and
greater prosperity for the miners of the anthra¬
cite are indeed encouraging. The receptions
that have been tendered me during the cam¬
paign have by far exceeded my wildest expec¬
tations, and I want to thank everyone who in
any manner contributed to the great demon¬
strations for their splendid hospitality.”
J. P. Kishbaugh Dies.
Philadelphia, September 1. — (Special Corre¬
spondence.) — Though James P. Kishbaugh, of
Mauch Chunk, associated with his brother, W.
Kishbaugh, in the management of the Mill Creek
Coal Company, died in this city a week ago Mon¬
day night, it was late in the week before his
associates here knew of his sudden taking off.
Mr. Kishbaugh had been in poor health for
some time and had consulted specialists as to a
form of heart disease from which he was suffer¬
ing. A few weeks ago he took a trip to New
England and seemed greatly benefited. On the
Monday mentioned he was in this city and was
out to the ball game and left another coal man
to take the train to go home. While in the
Reading Terminal he was suddenly stricken and
was removed to the Jefferson hospital, where he
died. The hospital authorities communicated
with his family and the body was taken to
Mauch Chunk for burial.
Socially, Mr. Kishbaugh stood high in his
native town. He was a member of various fra¬
ternal orders and was active in the formation of
the Sons of Veterans in Mauch Chunk. He was
fifty-one years of age and leaves a widow and
three daughters.
Imports and Exports of Coal for the Fiscal Year.
The following statements of the imports and exports of coal and coke for the fiscal year were com¬
piled from the monthly summary of the foreign commerce of the United States for the month of June
and for the twelve months ending June, 1915. The figures are presented in tables showing the imports
and exports by quantity and value, followed by a table showing the principal countries with which busi¬
ness was done.
Imports of Coal and Coke by Quantity and Value.
-June - , / - - Twelve Months Ending June-
-1914-
-1914
Coal, tons — Quantity
Anthracite . 2,942 $
Bituminous . 91,591
Bituminous* . ! . . . 1,578,204
Coke . 14,307 64,349 4,832 23,871 .
Coke* . 102,890
1913-
1915
Value. Quantity. Value. Quantity,
4,266 22 $ 153 1,670 $
277,604 118,719 324,758
Value. Quantity. Value.
8,337 8,124 ? 15,881
. 1,046,734 2,867,470
4,308,356 311,268 817,538
. 87,373 424,058
463,419 25,168 113.562
-1915-
Quantity.
12,358 $
1,429,608
Value.
28,809
4,150,785
88,805 398,949
-1914-
Imports of Coal by Principal Countries.
- June - ^ , - Twelve Months Ending June-
Countries — Quantity.
United Kingdom. 341 $
Canada . 67,511
Japan . 1,838
•Australia . 21,896
Other countries. . 5
-1915-
Value. Quantity.
969
Value.
-1913-
Quantity. Value. Quantity.
9,398 $ 37,152 11,025 i
209,847 85,525 $ 247,113 1,336,387 3,662,931 1,005,693
8,156 11,750 30,535 79,072 270,181 85,689
58,606 21,094 45,710 150,150 390,905 251,977
26 350 1,400 3,257 7,127 3,618
-1914-
Value.
43,361
2,577,915
395,058
654,925
13,749
-1915-
Quantity.
33,919 $
1,121,810
89,240
182,041
2,598
Value.
116,087
3,254,830
314,654
455,947
9,267
Total . 91,591 $ 277,604 118,719 $ 324,758 1,578,264 $ 4,368,350 1,358,002 $ 3,685,008 1,429,608 $ 4,150,785
Exports of Coal and Coke by Quantity and Value.
-June - ^ ! - 7-^-; - —Twelve Months Ending June-
-1914-
-1915-
-1913-
-1914-
-1915-
Coal, tons — Quantity. Value. Quantity. Value. Quantity. Value. Quantity. Value. Quantity. Value.
Anthracite . 433,265 $2,329,649 352,636 $1 ,855,862 4,625,481 $24,523,800 3,959,114 $20,881,373 3,682,188 $19,389,523
Bituminous* _ 1,185,566 2,848,292 1,933,410 5,001,26616,083,101 40,573,421 15,704,966 39,039,640 14,412,995 36,516,617
Total coal. . .1,618,831 $5,177,941 2,286,046 $6,857, 12820,':08,582 $65,097,221 19,661,080 $59,921,013 18,095,183 $55,906,140
Coke . 44,682 169,908 68,628 262,249 900,672 3,318,437 742,476 2,789,814 602,473 2,304,475
Exports of Coal by Principal Countries.
ANTHRACITE, TONS.
-June» ■ \ / - 7— - Twelve Months Ending June-
-1914-
-1915-
-1913-
-1914-
-1915-
Countfies — Quantity. Value. 'Ouantity. Value. Quantity. Value. Quantity. Value. Quantity. Value.
Canada . 427,719 $2,300,335 352,234 $1,853,392 4,545,976 $21,121,759 3,897,365 $20,574,637 3,621,234 $19,102,661
Uruguay . 5 34 . . 84 559 5 34
Other countries.. 5,546 29,314 397 2,436 79,503 399,041 61,665 306,177 60,949 286,828
Total . 433,265 $2,329,649 352,636 $1,855,862 4,625,481 $24,523,800 3,959,114 $20,881,373 3,682,188 $19,389,523
BITUMINOUS, TONS.
Italy .
Canada .
Panama .
Mexico .
Cuba . . .
Other West Indies
and Bermuda..
Argentina .
Brazil .
Uruguay .
Other countries. .
793,856
25,810
15,866
81,575
45,433
9,977
10,023
6,200
196,826
1,683,884
69,245
68,268
225,562
137,172
29,931
33,329
18,600
582,301
383,019
873,239
47,708
22,445
74,984
48,406
157,831
122,484
11,968
191,326
1,119,247 .
1,829,83511,981,443
130,542 483,974
99,869 443,884
207,378 1,273,945
29,136,271 11,472,397
1,305,866 362,427
1,246,660 296,392
3,419,939 1,129,954
148,200 001,431 1,697,687
484,275 .
378,194 .
35,121 .
568,605 1,298,424 3,766,998
577,541
139,409
239,082
62,452
1,425,312
26,634,550
979,847
1,030,713
3,139,914
1,698,026
401,467
765,824
188,892
4.206,407
1,628,279
8,425,103
343,372
391,611
1,065,206
461,892
563,889
527,264
103,689
902,740
4,848,655
18,308,105
939,130
1,716,111
2,989,148
1,410,927
1,708,561
1,614,088
303,393
8,683,499
Total . 1,185,566 $2,848,292 1,933,410 $5,001,26816.083,101 $40,573,421 15.704,966 $39,039,640 14,412.995 $36,516 617
Exports of Coal Imported Into the United States.
, _ June - — ^ , - Twelve Months Ending Jurie-
Coal —
Bituminous, free
Coke, free .
Coke, duty .
Quantity.
-1914-
Value.
Quantity.
. »6
-191.1-
Value.
$ ’ ” '9’g'3
Quantity
9,846
. 13
-1914-
Value.
$ 28,010
. 59
Quantity.
12,042
70
-1915-
Value.
$ 93,231
1,196
*Does not include fuel or bunker coal laden on .vessels engaged in the foreign trade, which aggregated during
the month and twelve months ending June as follows: June. 1914, 687,386 tons,
727 880 tons, valued at $2,409,410; twelve months, June, 1913, 7,351,114 tons, valued at $23,795,960; 1914, 7,811,913
tons, valued at $25,571,487; 1915, 7,062,653 tons, valued at $23,679,212.
188
[September 4
THE BLACK DIAMOND.
Relation of Ash to Fuel Efficiency.
By H. A. Atwater.
In order of importance to the buyer, the per
cent of ash in a coal can very properly be ranked
next to that of volatile matter.
In most cases the relations existing between the
per cent of volatile matter and furnace conditions
and efficiencies are as a closed book to the plant
owner. He will not hesitate to admit it. In his
opinion such matters are too technical to be con¬
sidered except by men who could qualify as
combustion experts.
But the subject of ash he regards as coming
well within his comprehension. He expresses his
ideas as to the significance of ash without any
lack of assurance. To him ash is an impurity
which is the same as so much common, inert mud
and the idea is firmly fixed in his mind that the
more ash there is in his coal the more he is being
victimized by the coal dealer.
And, the extent of his loss he is accustomed
to measure in direct proportion to the per cent
of ash as shown by analysis.
The Ash Question.
With very few exceptions, this is the concep¬
tion that steam coal buyers have of ash. One
of the surest means of proving the fallacy of
this opinion is the indiscriminate mixing of sev¬
eral different coals. A little experimenting along
these lines will soon convince any skeptical buyer
that ash is something more than just ash. A
number of the larger consumers have gone
through with such experiments and the lessons
they have learned from repeated cases of ex¬
pensive and troublesome clinkering should be
known to every buyer.
Ash is an impurity and is objectionable for
many reasons. But, while it has no fuel value, its
injurious effects should not be measured alone by
the amount of combustible matter in coal which
it displaces. In other words, under certain fur¬
nace and grate conditions a coal with a high
ash content often gives much better results than
another coal with a lower per cent of ash, the
coals being similar in other respects.
When Will Ash Clinker?
The question next arises, “How can a buyer
judge before contracting for a certain coal as to
its clinkering possibilities when fired under his
boilers ?”
Unfortunately there is no definite answer to
this question. However, by combining the expe*
riences of his neighbor with a little careful ex¬
perimenting of his own, the consumer can deter¬
mine for himself whether any particular coal is
going to give good or bad results as far as a
tendency to clinker is concerned.
Objections to the presence of ash in coal may
be based upon many reasons, such as the follow¬
ing: Increase in resistance offered to flow of
air through fuel bed, thus reducing rate of com¬
bustion and boiler capacity ; higher drafts neces¬
sary increase leakage of air through boiler set¬
ting; less intimate combination between oxygen
in air and combustible matter in fuel bed due to
interference of ash ; loss of combustible matter
as a result of cleaning fire of ash and clinkers ;
fouling of tubes by finer particles of ash carried
along by gases of combustion, etc.
Two Kinds of Clinker.
The principal consideration, though, is that of
clinkering, which is a result of the fusing of the
ash. In general, there are two kinds of clinkers,
• — the hard, non-adherent kind, and the soft, mo¬
lasses-like kind which tends to adhere to the grate
surfaces, side walls, and bridge wall, and resist
removal.
The hard clinker is not very troublesome, as
it does not tend to spread throughout the fuel
bed, lies quite dead on the grates, and is readily
removed.
The soft, pasty clinker is just the opposite in
character. It tends to spread throughout the fuel
bed, impedes and often prevents any motion of
the grates, particularly under hand fired boilers,
and does not hold together to permit of its being
removed bodily. Such a clinker often finally
necessitates cleaning the entire grate surface and
starting a new fire.
A great many experiments have been made,
most of them dealing with analyses of the con¬
stituents of ash in an endeavor to find some rela¬
tion by means of which the clinkering tendencies
of a coal might be predicted, but without any
real positive results. There seems to be no gen¬
eral relation between the fusing point of the ash
and the percentages of its various constituents,
nor does the amount of sulphur present seem to
affect the question of clinkering.
Many contracts contain a clause limiting the
per cent of sulphur which will be accepted to a
certain amount with a penalty added based upon
the amount by which this predetermined limit is
exceeded. The injustice of such a clause is ob¬
vious in view of the above stated fact that sul¬
phur has no particular connection with the clink¬
ering tendencies of a coal.
Fusion Temperature of Ash.
The fusion temperature of an ash is a far more
logical item to specify. In fact, this is one of
the first things that a careful coal buyer should
insert in his contract.
The character of the slag which constitutes
clinkers is more or less definitely known now, and
experiments have been carried out with promising
results looking toward the establishment of defi¬
nite constants governing the proportion in which
certain basic elements of the ash combine to form
the slag or clinker. However, until some such
system of calculated constants can be definitely
worked out and made generally applicable to the
analysis of an ash, the best course the buyer can
pursue is to obtain his information from actual
tests made under operating conditions. This is
not at all a forbidding prospect, as the lessons
of past experiences cover the ground quite thor¬
oughly.
The furnace temperatures vary considerably in
different plants. In plants where the boilers are
run well above normal rating, with a consequently
high furnace temperature, only a coal having an
ash of high fusing point should be used, but in
the case of lower furnace temperatures a coal
containing ash of a lower fusing temperature
could be used with just as good results. The
point to be observed is that the fusing tempera¬
ture of the ash should be sufficiently higher than
the highest probable furnace temperature so as
to prevent any tendency of the ash to fuse and
form a slag.
In case the fusing temperatures of all the coals
available are about the same, a distinction should
be made between the different kinds of clinkers
formed. In general, the buyer should avoid the
coal whose clinker is of the molasses type. If
any clinker forms it is better to make sure it
will be of the hard type, as this one is quite
readily removed.
A consumer would certainly make every effort
to avoid using a coal which would cause more
or less trouble from clinkering, but in case no
other coals were available without recourse to
the higher priced coals, he would be in a position
where he would have to make the most of a
bad situation. Clinkers very often persist in
sticking to the grates and walls, thus offering
considerable resistance to their easy removal.
Removing Clinkers.
The use of steam in the ash pit is the best
means of combating this tendency. As the use
of live steam for such a purpose would be quite
expensive, exhaust steam should be used when¬
ever available. Even water in the ash pit is a
fairly good substitute for steam.
The type of stoker installed has an importance,
when considering the subject of clinkering, which
is seldom appreciated by the consumer. Some
stokers agitate the fuel bed constantly, while
others do not. This constant stirring of the fuel
bed almost invariably aggravates any trouble
from clinkering which might be present. Sim¬
ilarly, in the case of hand fired plants a too fre¬
quent use of the slice bar will cause the same
difficulty.
Then again, some coals seem to require just
this continual agitation t6 prevent the formation
of clinkers.
So the only safe thing for the buyer to do is
to make actual tests of a coal to determine
whether it does or does not require an agitated
fuel bed.
The thickness of the fuel bed carried is an¬
other feature of operation which should be inves¬
tigated as soon as clinkers begin to develop. In
hand fi.red plants the average fireman tends to fire
too heavily at a time principally because such
a procedure increases the time available for
standing around between firings. The heavier
fuel bed which results after every charge is a
prolific source of clinkers, the obvious remedy
for which would be to fire oftener and to main¬
tain a thinner fuel bed.
The cooling action of the air passing up
through the fuel bed from under the grates is
very valuable as a preventive of clinkering. Con¬
sequently, the ash pit doors should always be
kept open, and any regulation of the draft should
be effected by means of the damper in the
breeching.
In hand fired plants, the rake is often used
altogether too vigorously for leveling purposes,
and the same criticism can be applied to the use
of the slice bar. Any violent disturbance of the
fuel bed brings the ash up to the hot upper
portions of the bed, where it soon fuses and
forms a clinker. Furthermore, more or less par¬
tially burned coal is dropped down into the ash
pit and the heat from this burning coal tends to
neutralize the cooling effect of the air passing
up through the grates.
Lastly, a word as to the mixing of various
coals. An owner frequently obtains the best re¬
sults, so far as an absence of clinkering is con¬
cerned, from a mixture of different coals. How¬
ever, there have been more cases of expensive
failures than successes, and to guard against a
shut-down no mixture should be hred during nor¬
mal operation until sufficient preliminary tests
have been carried out to serve as a basis for
positive information as to whether such a mix¬
ture zmll or will not cause clinkering.
In the final analysis, the safest course for the
buyer to pursue when dealing with the subject of
ash in coal is to make actual trial tests of what¬
ever coals are available for use under his condi¬
tions. Such tests will remove any doubt what¬
ever as to a coal’s tendency to clinker under
certain conditions. However, such trials need
not be gone into blindly, as the foregoing dis¬
cussion should present many general relations
which should decrease considerably the amount
of experimenting necessary.
It is said that there is something of a car
shortage on both the Baltimore & Ohio and
Wheeling & Lake Erie roads. This is some¬
thing rather out of the ordinary during the past
year and to many it recalls some of the past
years when the roads could not get the coal in
to the docks here with sufficient rapidity to load
the waiting vessels. Up to this time the load¬
ing machines are said to have operated in a very
dilatory fashion.
Lucien Hill, New York manager of the
Merchants Coal Company of Pennsylvania,
was advised on Tuesday evening of the ex¬
plosion at the Boswell mine of his company,
which caused the loss of life of some sixteen
miners. The mine managers are of the
opinion that the mine will be idle only a few
days as the result of the explosion.
THE BLACK DIAMOND
189
No. 10]
Charging Degradation on Coal.
About the most convenient method of
handling the loss of tonnage and grade in¬
volved in running a coal yard is by charging
degradation against receipts of lump.
This is the belief of a good many success¬
ful retailers who use this method, and who
point out that it is much easier to handle the
factor, as a bookkeeping proposition, when
such a charge is made, provided, of course,
that tests are taken occasionally to see that
the charge adopted really covers the loss.
For example, when the coal comes in from
the mines, a five per cent charge is made
against it to cover the loss in weight and
grade. This means, in effect, that ninety-five
per cent of the tonnage billed to the dealer is
charged with the cost of the entire 100 per
cent. As a bookkeeping operation, the five
per cent is credited to the lump pile, and
charged against the nut and slack pile, the
assumption being that the latter gets the low-
grade coal produced by the handling process.
The lump coal account absorbs the net loss
in this operation; that is, the difference be¬
tween the cost of the coal and the market
price of the nut and slack. When the coal is
rehandled, and moved out of the yard to cus¬
tomers, another five per cent charge is made
against it, the operation being handled in the
same way.
This makes a total ten per cent charge for
degradation. The amount, as a matter of
fact, is rather conservative, and errs in being
too small, rather than too large. With most
bituminous coals, a total loss of fifteen per
cent would come nearer taking care of the
proposition. The right system is for each
dealer to make a study of his own coal pile,
compare the weights in and the weights out
on sufficiently large lots to know how much
of an invisible loss he has and how much
actual loss in grade is accounted for, so that
his percentage of degradation will represent
not merely an arbitrary standard, but the re¬
sults of his own experience. Only in this
way can the charge be made effective, as a
business proposition.
The plan of placing a value upon the nut
and slack equivalent to the current market
price of that grade, and making the lump ab¬
sorb the loss, seems, in the opinion of a good
many retailers, to be the only sensible way to
determine the right way to price nut and
slack. Steam coal trade is solicited so closely
that it is next to impossible, in their opinion,
to get better than the market price for nut and
slack, and hence the only way to insure mov¬
ing it is to put on a price which will meet the
figures quoted from other sources. That is
putting the entire burden on the lump coal,
of course, but in most cases it is in the best
position to handle it.
Getting Rid of Nut and Slack.
The problem of handling nut and slack coal
to advantage is doubtless one of the most
severe that the retailer has to contend with. Tf
his market happens to be a convenient dump¬
ing ground for the c.xcess production of the
mines, he can rest assured that there will be
enough demurrage coal put on the market to
depress prices for this kind of fuel almost to
the vanishing point. In fact, they are often
below the vanishing point, and are actually
minus quantities, by the time teaming charges
are considered.
When a retailer, who has put high priced
lump coal into his yard, is compelled to haul
it out in the form of nut and slack to some
consumer at a price which represents less than
the cost of hauling, it is evident that on that
end of the business, at least, the dealer is run¬
ning not a commercial enterprise, but an
eleemosynary institution.
Yet, what is the dealer going to do? He
must get rid of his nut and slack. If, as sug¬
gested elsewhere, he has already charged the
loss of tonnage and grade against his domestic
coal — and is getting the price for the latter
which this loss absorption requires — his whole
problem is one of selling the nut and slack,
not necessarily selling it at a profit. So if he
goes out into the market and gets orders for
it, even at prices which barely cover the cost
of hauling, he has met the requirements of the
situation.
But, in cases of that kind there is the dan¬
ger that the lump coal will merely have been
charged with the supposed shrinkage in value
of the nut and slack, based on assumed prices,
instead of a 100 per cent shrinkage, the result
of selling at a figure which merely allows for
teaming expense.
With the nut and slack question so difficult
of solution when the dealer must sell it in the
open market to regular steam coal buyers, it
seems that a greater play for furnace coal
trade, involving delivering a mixture of lump
and nut and slack coal, would help some.
Of course, such a plan would necessarily
mean selling less lump to customers who took
the furnace grade, but, on the other hand, the
latter could be figured at a reasonable cost
price, and the regular delivery and profit
items added to it. The dealer, in that event,
would _ be making a profit on all his ton-
nage, instead of only on part of it, and while
he might not need so much coal to run his
business with, he would probably be able to
make a better showing in the matter of net
results.
A good many dealers supply nut and slack
with lump coal for furnace use when the
customer requests it, or suggests that he
might be able to use a cheaper grade to ad¬
vantage. Comparatively few, however, actu¬
ally feature the proposition. Obviously, in
order to be of the greatest benefit, it would
be well not to use too much publicity, but
to present the proposition to individual con-
.^umers, using fairly large quantities. If the
idea were handled intelligently, the dealer
would be able to move a large part, if not
most of his nut and slack, and at prices which
would enable a profit to be seen with the
naked eye.
Display Value of Coal.
Most coal dealers take it for granted that
their product has no value from the stand¬
point of display.
Consequently the window, if the dealer has
one, is bare of anything worth the name of
display.
A lump of coal, by itself, may indeed be
without much selling value, but a man with
imagination can make an interesting display
out of any sort of materials. For instance,
there is a certain stationer in an Ohio \al¬
ley city whose window displays are famous
all over the country. All he shows is ink,
pencils, rubber bands, mucilage, etc.; they
are not very pretty nor very attractive, but
he works them up into exhibits that catch
the eye and make the passerby stop and
look.
A coal dealer who has the right idea re¬
cently applied a little imagination to his win¬
dow display. The street railway company
in his town had been carrying on a “Safety
First” campaign by means of big posters in
the cars, while the newspapers were also help¬
ing along the good work. Consequently the
local public was more than ordinarily inter¬
ested in the topic, though of course safety
first propaganda has been more or less famil¬
iar for some time.
This dealer made use of the current in¬
terest in the question by putting a nice blocky
lump of coal in his window. It was set on a
pedestal — consisting of a low box covered with
cheese-cloth — and really showed up nicely.
The legend underneath the coal was this-
“SAFETY FIRST— You Can’t Go Wrong
When You Buy Blank Coal.”
This was quite simple, and anybody could
make such a display. Yet, in spite of its sim¬
plicity — or perhaps because of it — it was really
effective; and those who saw it got a good
idea of the character of the coal and a favor¬
able impression of the methods of the con¬
cern selling it.
Even coal stored in a yard can be made
more presentable than it often is. In the
small-town yard, especially, where a great
many people pass by, efforts should be made
to maintain a clean, shipshape appearance, so
that the prospective customer who rides by
will say to himself, “That is certainly a nice-
looking pile of coal.” If he says that, he is
more than likely to be converted from a pros¬
pective into an actual customer.
The writer was recently in a small town
in Ohio, where the leading coal dealer handles
lumber and building materials, as well as the
other line. His yard is a model of neatness.
The buildings in which the supplies are stored
are well constructed and attractively painted.
The coal is piled up solidly, and looks clean
and well graded. The coal pile is not the least
attractive feature of the yard, and demon¬
strates what_ a little care and thought will do
to make a display of coal helpful from a sales
standpoint.
Paducah Dealers Get Together.
In line with the recent announcement to de¬
linquent customers, put out by the Evansville,
Ind., dealers, as reported in this department
some time ago, the Retail Coal Dealers’ Asso¬
ciation of Paducah, Ky., in the same section
of the country, has published an announcement
on the subject that is likely to have a salutary
effect. It is as follows:
“We, the retail coal dealers of Paducah,
have found it necessary to unite in what shall
be known as the Retail Coal Dealers’ Associa¬
tion for the protection of ourselves in hand¬
ling the credit business.
“Another winter is fast approaching, and a
great many customers still owe us for last
season’s requirement of coal. We have, there¬
fore, found it necessary to report to our sec-
retarj" the names of all delinquent persons
from whom we have been unable so far to col¬
lect by all honest means. We do not desire
to embarrass any of our customers who are
willing to pay their just accounts, and are
therefore advertising in this space for the
benefit of those who have not as yet paid
their accounts or made satisfactory arrange¬
ments to do so.
“We very respectfully urge all delinquent cus¬
tomers to pay up or make satisfactory arrange¬
ments regarding their accounts before Octo¬
ber 1, 1915, as after that date all accounts not
yet taken care of will have to be reported to
our secretary, whose duty it will be to notify
all members of this association of such de¬
linquency.”
According to a recent estimate of the Govern¬
ment. the amount of coal in the Rock Springs
district of M’yoming available for mining cxceeils
113,000,000,000 tons. This includes all coal de¬
posits within .1,000 feet of the surface and in beds
two and a half feet or more in thickness.
190
THE BLACK DIAMOND
[September 4
fubi>isez:d etebt batxtbdat bt tee
BBACK EIAMOEl) COMFAET.
Subscription price, $3.00 per year, postage prepaid, to
any postoflSce in the United States. _ Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communicatiuns to
THE BIiACE DIAMOND COMPANY (INC.)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, September 4, 1915.
INDEX.
Special Articles.
Page
Rail Rates and Pilot Fees Dwarf a Big Harbor . 181
Electricity in Mines — Growth and New Uses . 184
How the Nation Can Help Shippers. . . 185
Locomotive and Car Shortage Is Inevitable . 185
Centralize Safety Work . 185
British Coal Situation . 185
Men Prominent in the Coal Trade’s Eye . 186
F. B. Cortright Dies . 186
\Vant Coal Lands Sold . 187
Coaling Plant for Honolulu . 187
Mr. White’s Farewell . 187
I. P. Kishbaugh Dies . 187
Imports and Exports of Coal for the Fiscal Year.... 187
Practical Hints to Steam Coal Users . 188
Field of the Retail Dealers . 189
Editorial . 190
News Local to Chicago . 192
What the Ohio Coal Mines Need Most . 192
Facts \Vhich Determine Our Export Prospects . 193
Columbus Contracts Let . 193
Johnstown Mine Explosion . 193
Market Reports.
General Review and Chicago . 194
Pittsburgh and Detroit.. . 195
Cincinnati and Twin Cities . 196
St. Louis, Duluth, Cleveland, Louisville and Omaha. . 197
New York . 198
Philadelphia and Buffalo . . 199
New England, Baltimore, Birmingham and Denver. . 200
Hocking Valley . 15
Colorado’s Partisanship.
The American people are becoming dis¬
gusted — and with good cause — with the
conflicting reports from Colorado. One
day the daily press says that the Gov¬
ernor has obtained information that the
United Mine Workers and certain federal
authorities are conspiring to destroy the
Colorado militia. It is added that they
propose to indict certain state officials that
they may trade the withdrawal of prose¬
cutions of such cases for the withdrawal
of the prosecution of certain miners who
are indicted for murder in connection with
the recent strike.
The next day the same daily press car¬
ries the statement that the mine workers
have convicted a judge' of partiality and
have had him barred from hearing of all
further cases against accused miners.
The miners have proved — ^according to
the papers — that the Governor and his
staff are partisans in the employ, virtually,
of coal mine owners.
Thus today there is accusation ; tomor¬
row there is recrimination. Between the
two, the people fail to get the truth of the
matter, and the whole country is agitated
to the point of taking sides.
One thing about Colorado is preemi¬
nently true. It is suffering today and is
endangering the nation because it is and
has been a state breeding violent partisan¬
ship. This is so because Colorado has
digressed from its original and proper
function of making laws and administer¬
ing justice into a sort of dominating com¬
mercial influence. It long ago reached the
dangerous point where its officials, by
extending favors can make men rich, and
where by withholding favors they can
make men poor. Thus politics, with its
constant shifting of partisan control and
its constant change of men in power, has
been given a function never intended by
any scheme of government. In the end,
it must prove disastrous as first the rep¬
resentative of capital and next the repre¬
sentative of labor climb into temporary
control of this powerful organization and
begin to bestow favor on their friends.
In Colorado, heretofore, this political
control of the state’s power has been pur¬
chasable for money ; today it is purchas¬
able for a far more subtle influence — the
voting strength of an organization of men.
The resultant situation is unmoral and
dangerous, not only to both capital and
labor in Colorado, but to the very exist¬
ence of a democratic form of government.
There should be no need, at this late
date, to thrash out in a small community
like Colorado the old dispute as to
whether capital or labor should rule. That
issue should be considered as settled for
all time by the decree that the whole
people — and no fraction thereof — are mas¬
ter.
We do not begin therefore to under¬
stand the Colorado situation until we rec¬
ognize that many of its people may be
partisans but the state cannot be. That
is, the state of Colorado has, and can have,
no favorites. It must stand primarily for
impartial justice whether the person at
bar is mine owner or the meanest la¬
borer in the commonwealth. Incidentally,
that impartial justice must be done as
well to John D. Rockefeller as to the most
powerful labor organizer in Colorado.
Only impartial justice and men strong
enough to enforce it can ever straighten
out the Colorado situation and restore
something of the supremacy of govern¬
ment.
England’s Coal Situation.
At the outset of the war England em¬
ployed in its coal mines about one mil¬
lion men. Two hundred and fifty thou¬
sand of these have entered the army,
leaving three-quarters of a million to do
the mining. That automatically limits
coal production, unless each man does
one-third more work.
With the beginning of war, coal con¬
sumption by the navy was more than
doubled. Fuel demands by the govern¬
ment were vastly increased and England’s
coal owners were, for lack of fuel, com¬
pelled to retire, to an extent, from the ex¬
port market.
The excessive home demand and smaller
production of coal naturally indicated a
rise in price. However, to prevent the
coal owners from taking the natural com¬
mercial advantage of this situation. Par¬
liament regulated coal prices. In sub¬
stance, it.refus.ed to permit the operators,
under heavy penalty, to charge a higher
price than had ruled prior to the first of
August, 1914. This limiting of prices on
a reduced tonnage automatically cut the
earnings of the English coal companies.
When three-fourths of the miners found
that they had to do practically the work
that 100 per cent had done heretofore,
they demanded an increase in pay. They
were at liberty, apparently, to take full
advantage of the law of supply and de¬
mand for labor, even though the operators
were not as regards coal. Parliament,
through one of its officials, interfered and
stipulated that the miners should get cer¬
tain bonuses. This increased the cost of
labor. The operators thus lost in tonnage,
lost an opportunity to get a rise in price,
and lost because the wages of the miners
were increased.
The European war has brought to com¬
mercial interests the World over an op¬
portunity to make money out of the things
sold to the warring armies, but to the
coal owners of England it has brought
only a success of losses. On top of that,
it has brought increased taxation to sup¬
port the men in the field. It would seem
that England has been asking the coal
owners to bear more than their fair share
of the cost of the great struggle.
Democracy and the Press.
No one will deny that the essence of
democracy is the tenet that the majority
rules. A man, therefore, who wants to
rule in a democracy must have the ap¬
proval of the majority. There are two
ways of getting that approval.
One of them is to convince the majority
that it is wrong and to convert it to a
right belief. In any conceivable length of
time it is impossible to change the opinion
of the majority where the total population
is expressed in such an enormous figure
as one hundred million persons. There¬
fore,. no public man in a democracy is
“fool” enough to try to change the ruling
opinion about anything.
The other way is to say what the ma¬
jority are already thinking — or think they
are thinking — right or wrong. If the sub¬
ject at hand is abstruse and technical, and
especially if it demands intensified think¬
ing, it may be depended upon that the
majority is not well enough informed to
have or to express an intelligent opinion.
Therefore to depend upon the majority
opinion on a big question is to take the
wrong view of it.
The latter is the way most men gain
prominence in a democracy.
The press of America — the popular
press — is struggling for the same kind of
power as is the politician. It is the power
which arises from the expression of ideas.
For example, the local daily newspaper is
constantly running for local office, even
as is the sheriff or the mayor. However,
the mayor runs for office only once in two
or four years ; the daily newspaper pleads
for votes every morning.
The mayor gets his power by thinking
the way he assumes the population is
thinking. The daily newspaper gets its
prominence by thinking the way it as¬
sumes the majority is thinking.
Continuing the simile, the national pub¬
lication is comparable to the president of
the United States or to a member of Con¬
gress.
That is, democracy is coloring our lit¬
erature rather than the reverse being true.
This is so contrary to popular belief that
we will explain. An editor is only an
individual. He can see, hear and think
no more than one pair of eyes, one brain,
and one pair of ears will allow. He can
not possibly know much about anything.
Because his orbit is so small, he cannot
know what the majority is thinking or
No. 10]
THE BLACK DIAMOND
191
even wants to think. He must assume a
lot — an awful lot. By his broad and lib¬
eral assumptions, he concludes that the
majority thinks a certain way. He does
not know that the majority thinks that
way; he cannot know. Still he assumes
that they think as he concludes, so he
writes his articles from that point of view.
Incidentally, he colors his facts to suit an
assumed and fictitious taste.
This has a vicious effect. The real ma¬
jority started without any knowledge of
a given subject, but keen for information.
When some information was presented,
the majority eagerly read it. The interest
in the subject did not signify that the
public had a preconceived idea concern¬
ing or had formed an opinion about it.
The people merely wanted to know. The
editor and publisher believed that the
avidity with which the people bought
what was printed signified that the people
approved the opinion in the first article.
Acting on that belief, he printed more to
the same effect. The people, to get
further information, grabbed at the sec¬
ond installment. The editor, confirmed in
his belief that it was his point of view
and not his facts which was sold, printed
more of the same kind. The people ab¬
sorbed the third installment.
Pretty soon, since only one point of
view was presented, the people began to
believe there was only one phase of the
subject and formed an opinion. But this
was a wrong opinion, because it was
founded upon false witness.
There are two points to this situation.
The first is that the so-called majority
was fictitious in the rhind of both the edi¬
tor and the reader. The editor said :
“I don’t believe this stuff, but ‘the ma¬
jority’ wants it, so I’ll print it.”
The reader said :
“This is one-sided and I don’t believe
it, but ‘the majority’ wants it, so let it
pass.”
Both constructed a fictitious majority
of which neither was a party and consid¬
ered it as ruling. Still — and here is the
curious psvchology of it — frequent repe¬
tition of only one point of view so ob¬
scured all other points of view that in
the end the editor and the reader came to
believe what was being said.
The other and the really big point is
that by this system of bearing false wit¬
ness, a device was created by which the
very idea of democracy is being destroyed.
That, is, a false notion of democracy has
tinged the literature of the country. This
literature has tainted the opinion of the
people. The warped opinion of the peo¬
ple is working the destruction of popular
government. The combination is result¬
ing in the destruction of a form of gov¬
ernment which has been declared to be
ideal. It is curious that the thing which
has been considered the bulwark of lib¬
erty has thus developed into the very en¬
gine which destroys liberty.
Centralizing Safety Effort.
The “safety first” propaganda, which is
spreading from coal mines to every in¬
dustry, has reached a sort of climax in the
formation of the National Safety Council.
This is about to absorb the American
Mine Safety Association, which becomes
the mining branch of the larger organi¬
zation. This seems to be a case of the
offspring absorbing the parent. Even so,
it is a movement in the right direction.
There can be no such thing as section
or any other division lines in such an im¬
portant movement as that expressed in
the slogan “safety first.” The phrase
means merely to put the endangered in¬
dividual on guard against himself. It
warns men who work in dangerous places
to “look before you leap.” This warning
has a pointed meaning in the coal mine,
where danger is imminent all the time.
Where men are living in more or less dan¬
ger all the while, it is human for them to
become so familiar with it that, in time,
they get a contempt for it. If only to keep
the miners on their guard against the
thing which is likely to destroy them, the
“safety first” movement is needed in the
mine.
However, there are other places where
equally dangerous conditions exist. There
is imminent danger all the time on a rail¬
road, where enormous weights on wheels
are constantly in motion, and where an
individual is likely to be ground to pieces
if for an instant he disregards his own
safety. There is just as much danger con¬
stantly in steel mills and in other places.
Underlying all of these potential dangers
is a common weakness of humanity — men
will not always be vigilant for their own
safety. To keep them keyed up to a need
to save themselves, the slogan “safety
first” must be reiterated.
If the best results are to be obtained,
there should be but one national organi¬
zation. Therefore the organization of the
National Safety Council is most logical.
That this safety council should work
through subdivisions familiar with the
technical phraseology and local conditions
in various industries is also quite natural.
To do that promises to introduce effi¬
ciency through centralized control, and
this commands the attention and the ap¬
proval of the best men in business.
What Regulators Can Do.
The broad assumption of the public has
been that the Interstate Commerce Com¬
mission is master of the railroad rate
situation. This isn’t exactly true, as its
own statement, of recent date, proves. It
makes its own position clear when it co¬
incides in effect at least with the recent
ruling of the United States supreme court
when the latter said that the owner of a
carrier may accept a loss on a certain clas.s
of traffic and make it up on another class,
but the regulating power cannot compel
him to do so. That is, the regulating power
cannot force the regulated carrier to ac¬
cept, as a rate, less than the proved cost
of the service ; in this particular, the cost
of the service is that commodity’s per¬
centage of both the total operating ex¬
penses and the total profit of the line.
In one of its big decisions, the commis¬
sion makes this statement :
“We may not say that a rate shall be
fixed so as to meet the requirements or
needs of any body of shippers in their
efforts to reach a given market ; nor may
we establish rates on any article so low
that they will not return out-of-pocket
cost. Neither could we fix an entire
schedule of rates which would yield an
inadequate return upon the fair value of
the property used in the service given.
There is, however, a zone within which
we may properly exercise ‘the flexible
limit of judgment which belongs to the
power to fix rates.’ These are the words
of the Chief Justice of the Supreme Court.
There is no flexible limit of judgment if
all rates must be upon a level of cost, and
out of every dollar paid to the carrier
must come a fixed amount of return for
capital invested.”
The commission thus recognizes that it
cannot force a carrier to accept a loss on
one commodity and to make up that loss
on another commodity. That is, it can¬
not force it to accept a loss on coal and
make that loss up on the movement of
silk, tea, luxuries in general, and high-
priced animals. Still, if the railroads
themselves decide to do just that thing,
the commission, by exercising the “flex¬
ible limit of judgment” can sanction what
the carrier has done.
This has a particular bearing upon the
recent decision of the coal case — in the
eyes of the commission. The carriers had
said that the loss on coal was too heavy
to be made up by any conceivable higher
rates on the higher classes of traffic. The
commission did not feel itself justified in
taking exception to that position of the
railroads. Therein, it seems to us, lies
the crux of the whole decision of the com¬
mission.
A Need Emphasized.
Last November the coal operators of
Indiana and Illinois prepared a statement
of facts about their business. This was
presented to the president of the United
.States. Saying much in little space, this
document said that if the coal operators
charged either for the amortization of coal
land or depreciation of plant and equip¬
ment, they would at the average price of
1914 have a loss for the two states of at
least three cents a ton. This statement
presupposed a continuance of present pro¬
duction and present distribution over a
territory embracing eighteen states.
Now comes the Interstate Commerce
Commission and makes two decisions
which limit the market zone of these two
coals without in any way decreasing the
production. That is, the differential
against these two coals in the northwest,
limits the selling zone there. The dif¬
ferential against them in the Birmingham
case lops off a big selling territory there.
With the coal selling territory abridged
both north and south and with lowering
rates on Colorado coal limiting the sell¬
ing territory to the west, the operators
have still the same productive capacity
but a much smaller selling zone.
If, therefore, there was a need, eight
months ago, that something be done to
help the operators solve their problem,
there is a double need at present.
This need is emphasized by another
situation, which is quickly developing in
Ohio. Operators of that state, finding
themselves in about the same position as
the operators in Indiana and Illinois, are
fighting the railroad for a complete re¬
adjustment of rates. If they get it, coal
will move to the lakes for twenty-five
cents less than it does now; therefore it
will sell twenty-five cents a ton lower in
the northwest. By that means the sell¬
ing zone of western coal will be that much
more abridged.
Under the circumstances, if the coal
trade is to live, something must be done.
192
THE BLACK DIAMOND
[September 4
News Local to Chicago.
Frank W. DeWolf, director of the Illinois
Geological Survey, spent the better part of the
week in Chicago.
C. M. Moderwell, president of C. M. Moder-
wcll & Company, was in Fairmont, West Virginia,
over last Sunday.
J. K. Dering, president of J. K. Dering Coal
Company was on an eastern trip the early part
of this week, returning on Thursday.
W. R. Kernohan, western representative of the
Pocahontas Coal Sales Company, took a trip into
Minneapolis and the northwest this week.
Joseph Devoy of the Ohio & Michigan Coal
Company, Detroit, was in Chicago this week after
making a trip across southern Michigan. He
reports every dealer in that section heavily
stocked and patiently waiting for orders.
H. M. Ullrich, representative in southern Iowa
of C. M. Moderwell & Company, and having head¬
quarters at Des Moines, was in Chicago the first
few days of this week. He was accompanied by
Mrs. Ullrich.
Peter Beck, president of the Beck Coal & Lum¬
ber Company of Harvey, Ill., paid hi§ weekly
visit to Chicago. Mr. Beck says that industrial
conditions are much improved in his section and
that the uplift is not due to war orders.
The Higgins-Martin Coal Company, operating
in the Clinton, Indiana, district, have opened a
Chicago office at 1001 Plymouth building. E. V.
VVarren, for several years with Richards, Evans &
Company, will be in charge with the title of sales
manager.
The Gifford-Wood Company announces its re¬
moval to the second floor of the Sharpies build¬
ing at 565 West Washington street, Chicago. The
company occupies the entire second floor and now
has available more ample accommodations for the
display of its large stock of ice and coal han¬
dling machinery.
On September first the Eranklin and Saline and
some Williamsfield county operators advanced
the price on domestic coal to $1.75. The Spring-
field operators advanced their circular to $1.65,
and some Williamson county operators advanced
their circular to $1.60 on lump and egg and $1.75
on number one wa,shed.
Early this week E. H. Harwood, vice-president
of the New Kentucky Coal Company issued a
very attractive little booklet, describing the coal
of that company. It gives a mighty interesting
history of Murphysboro deposit of coal, which
is controlled by this company. This proves to be
in a way a sort of history of all southern Illinois
coal fields.
Charles B. Ebbert, western manager of the
White Oak Coal Company believes that the West
Virginia shippers will be bothered considerably
by a car shortage in the near future. Operators
located on the Chesapeake & Ohio Railway report
indications of a shortage of equipment on that
line and this condition will undoubtedly spread
to other roads shortly.
Charles W. Jackson, manager of the jobbing
department of the F. G. Hartwell Company, re¬
viewing conditions, says, “Dealers have not de¬
livered anywhere near their usual tonnage and
shipments are far below normal up to this time.
This tonnage will have to be delivered within
the next few months in order to meet the de¬
mands of the consumer.”
Some time ago the American Institute of Min¬
ing Engineers decided to appoint a committee on
mine explosion, this committee to act as ad¬
visory capacity to the bureau of mines. Early this
week the members of the committee were named
by the institute and comprise Carl Scholz of the
Rock Island Coal Mining Company, Qiicago.
Erank Haas of the Consolidation Coal Company,
Eairmont, and H. M. Chance.
On September first J. H. M. Claggett, resident
manager of the Philadelphia & Reading Coal &
Mining Company put out a circular price on an¬
thracite, naming the following figures : Broken
or grate coal, $6.60 ; nut, $6.85 ; stove, $6.85 ; chest¬
nut, $7.10; pea coal, $5.55. All net tons of 2,000
pounds f. o. b. Chicago. These are the same
prices that have ruled heretofore. Therefore, the
increase in freight rate of twenty-five cents a
ton to Chicago has not been added to the price
which the retailer and the cusumer are ex¬
pected to pay.
Van H. Manning, who has just been appointed
director of tbe Bureau of Mines, to succeed the
late Dr. Jos. A. Holmes, is expected to be in
Chicago on Saturday, September 11. He will be
here on his way to San Francisco, where he ex¬
pects to attend several mining meetings to be
held there the latter part of the month. While
he is here, it is expected that he will be enter¬
tained by the coal men, the entertainment being
under the auspices of the Illinois Coal Operators’
Association. This will be Mr. Manning’s offi¬
cial introduction to the coal trade, although he
has been very well and favorably known to the
coal men because previously he has acted as
assistant to Dr. Holmes for several years, and
in consequence is familiar with coal business in
all sections.
A memorial committee for the late Dr.
Joseph A. Holmes, director of the Bureau of
Mines, has just been appointed by James F.
Callbreath, secretary of the American Mining
Congress, and is made public by Carl Scholz,
the president. It is expected that this com¬
mittee will meet in Alemorial Hall, San Fran¬
cisco, on September 21, when each member
will make a short address about Dr. Holmes.
These addresses will be preceded by a histor¬
ical statement prepared by Van H. Manning,
successor to Dr. Holmes. The committee fol¬
lows; Samuel Taylor, Pittsburgh: George
H. Cushing, Chicago; J. H. Richards, Boise,
Idaho; C. W. Goodale, Butte, Mont.; H. M.
Lawrie, Portland, Ore.; B. F. Millard, Valdez,
Alaska; Dr. D. P. Day, Washington, D. C. ;
J. C. Kolsem, Terre Haute, Ind.; W. R. Wood¬
ford, Cleveland, Ohio; T. H. O’Brien, Dawson,
N. M.; John Hays Hammond. New York City;
C. S. Keith, Kansas City, Mo.; Thomas B.
Stearnes, Denver, Colo.; Jesse Knight, Provo,
Utah; M. D. Leehey, Seattle, Wash.; Dr. I. C.
White, Morgantown, W. Va.; P. J. Quealy,
Kemmerer, Wyo.; Dr. Joseph H. Pratt, Chapel
Hill, N. C. ; E. W. Parker, Wilkes-Barre, Pa.;
and William Griffith, Scranton, Pa.
Carl Scholz, president of the American Mining
Congress, is having splendid success with his
effort to get up a special party of coal men and
their families to go to the meeting of the Amer¬
ican Mining Congress at San Francisco the latter
part of this month. He thought at first that he
would be very well satisfied if he filled one spe¬
cial car, but reports up to the latter part of this
week indicated that he would be able to fill at
least two cars. The party will be made up in
part by men from east of Chicago, but the indi¬
cations are that some from Illinois and Iowa
will join the party here. The intention, as pre¬
viously outlined, is to leave Chicago via the Rock
Island Railroad, making a stop for the better
part of a day at Salt Lake City and going on to
San Francisco in time to reach there Saturday
morning, the 18th. According to this schedule
the party will leave Chicago on Tuesday the 14th.
This will give them Sunday in San Francisco -be¬
fore the Mining Congress opens on Monday, the
20th. There is special interest for coal and min¬
ing people in this western trip just now because
the international Engineering Congress will hold
a meeting at San Francisco on the 20th, start¬
ing the same day as does the Mining Congress,
and then on the 23rd there will be a meeting of
the American Mine Safety Association. In San
Francisco the headquarters of the American Min¬
ing Congress will be at the Palace hotel.
What the Ohio Coal Mines Need Most
Clevel.«iND Ohio, September 1. — Walter R.
Woodford, president of the Rail & River Coal
Company, with mines at Bellaire, recently gave out
the following concerning the coal rate hearing in
Ohio :
“The discrimination in railroad freight_ rates
may have something to do with the present inabil¬
ity of Ohio operators to sell their coal in compe¬
tition with West Virginia, but when West Vir¬
ginia operators can sell their coal as they are
doing, at 70c or less for mine run when it costs us
about 95c under normal conditions, it is evident
that there is something besides the freight rate
which must be adjusted and rearranged. The
real discrimination is that the miners union has
permitted a condition to exist in West Virginia
which enables the operator to mine coal at 25c
or 30c a ton less than we can. The attached
figures show only partially where West Virginia
has the advantage of Ohio, and these figures are
in a contract made by the miners’ union.
“Another thing — Hocking Valley miners are be¬
ing brought to Cleveland at the expense of the
state to accept work on streets, etc., at $1.75 per
day, when they refuse or are not permitted to
work for an operator in Ohio at less than $2.62
or $2.84 per day.
“Is there any wonder that the operator is un¬
able to furnish work to miners? These men and
their families are willing to accept charity rather
than work for an Ohio operator at wages which
he is willing to accept from the city of Cleveland
or from an operator in West Virginia.
“How long will the people of Ohio, who really
have the state’s best interests at heart, permit
such a condition to exist.
“The miners of the Hocking Valley are getting
some relief at present from the public, but unless
this wage question is corrected in the near future,
the public will have not only the Hocking Valley
but all of the eastern Ohio miners on their hands
as well, and this means a serious situation when
such a number of persons have to be supported
through a long winter.
“Those miners and others who are being mis¬
led by the miners’ officials and politicians into the
belief that the railroads are going to reduce their
rates and when they do that work will be forth¬
coming, will, I fear, be sadly disappointed. A
reduction in or readjustment of railroad rates is
only one of the things necessary to start up the
mines of Ohio.
“The state is now suffering the penalty of the
passage of the Green anti-screen law, just as the
operators told Governor Cox and Willis and the
legislature that it would suffer, but neither of the
gentlemen named seemed to think the operators
were honest in their statements. The last legis¬
lature did believe in their honesty and passed
the Gallagher bill, but the delay on the part of the
governor in signing it made it impossible for the
coal industry this year to get the benefit of that
law.
“Following is a comparison of some of the
items of wages paid in No. 8 (Ohio) District and
the Kanawha (W. Va.), District (taken from the
contract between the Kanawha Coal Operators
and the U. M. W. of A.)
“The rate for mining, loading and cutting ap¬
plies to Kanawha seams 1 and 2, but the day wage
scale applies to the whole Kanawha District.
No. 8.
Pick mining . $0.6760
Machine loading . 39
Machine cutting . 08
Water haulers . 3.19J
Motor and machine runners . S.19^
Track layers . 3.1954
Track layers’ helpers . 2.93
Trappers . . : . ■ . 1-39
All other inside day labor . 2.93
“The Kanawha day wages being for 9 hours’
work, the No. 8 wages are figured as for 9 hours
also. In the unorganized fields of West Virginia
the scale of prices is much lower than the above.”
No. 8.
Kanawha.
$0.6760
$0.49
.39
.26
.08
.0614
3.191^
2.05
3.19J^
2.55
3.1914
2.43
2.93
2.00
1.39
.89
2.93
2.00
Quite a new factor has been making its ap¬
pearance in the local coal trade during the
past few weeks. This is in the shape of Ital¬
ians who have connections with firms in their
fatherland and who have received letters ask¬
ing to be placed in touch with American coal
firms who can export. Some personal ca-lls
have been made at some of the offices and
facts and figures have been asked for. One
thing that is quite noticeable, and that is
there is no disposition on the part of the folk
at this end to do business for the pure love of
the thing. In most cases the query has been
as to the amount of commission the coal men
would allow were they successful in getting a
contract.
Washington dispatch advises that pressure is
being brought to bear on the Interstate Commerce
Commission to have extended the date on which
the recent decision in the anthracite rate case
becomes effective. The date set by the commis¬
sion was October, and this may be extended for
sixty to ninety days. There is some gossip to
the effect that if the date is not extended beyond
October, the receivers may go into court and ask
for an injunction against the commission.
The United Mine Workers of the anthracite
regions meet at Wilkes-Barre next Tuesday to
formulate demands to be made upon the operators
at the expiration of present wage agreement,
April, next.
Hampton Roads August coal exports were
618,000 tons. Exports from Philadelphia and
Baltimore will make the total around the one
million ton mark.
193
No. 10]
THE BLACK DIAMOND.
Facts Which Determine Our Export Prospects.
The Export Situation.
.\t the moment figures showing exports
over the Atlantic seaboard for the month of
August are not available. According to early
estimates the totals for the month will not
fall very far short of shipments for the month
of July, although sorne shippers were very
much handicapped during the month for lack
of vessel tonnage to move coal under con-
tract.
The trade following very closely the labor
troubles in England, cables on Wednesday an¬
nounced that the Miners’ Federation had met
at Cardiff and had voted to accept the terms
of settlement agreed upon in London on Tues¬
day. This will mean that all of the miners
will return to work immediately.
As is shown in the Cardiff market review,
published elsewhere in this issue, shippers are
experiencing a great deal of difficulty in ex¬
porting coal, due to the new government re¬
striction. To a great many neutral coun¬
tries English exports have been radically cur¬
tailed during the past several months, and
this leads American shippers to anticipate that
there will be a great many spot purchases of
American coal in the very near future to fill
pressing needs.
American coal exporters are just now work¬
ing on some very big business for trans-At¬
lantic shipment, but finding it very difficult to
arrange satisfactory transportation as well as
satisfactory terms for payment of cargoes.
At the Hampton Roads ports there is no
over-abundance of New River and Pocahon¬
tas, and these coals are held very closely
around the $2.85 price.
Bunker demand continues good and is ex¬
pected to show a very marked increase dur¬
ing the present month, as a great deal of ship¬
ping is expected because of the commence¬
ment of the grain export season.
The Welsh Coal Situation.
Tuesday’s cables told of the settlement made
in London between the leaders of the South
Wales coal miners and the coal operators
through the offices of President Runciman of
the Board of Trade and David Lloyd-George,
minister of munitions. As was announced in
The Black Diamond last week, 10,000 miners,
dissatisfied with the award made them by
President Runciman following the strike of
several weeks ago, had quit work, _ From that
time until Monday the number of idle men in
the Welsh fields ran between ten and twenty
thousand. The settlement made at Tuesday’s
conference, according to the cables, gave the
miners all that they asked for. Had no set¬
tlement been reached it was stated that the
government would have intervened and taken
the mines under control.
Latest mail advices from Cardiff under date
of August 30th show that the coal market was
at that time in a very much unsettled state,
due to the difficuly of exporting coal under
the new government restrictions. Since
August 13th shippers have been unable to ex¬
port coal except upon the securing of special
licenses from the coal export committee of the
War Trades Department. These authorities
have evidently been very careful as regards the
issuing of licenses and shippers are required
at every instance to give the name of des¬
tination and consignee. This they are not al¬
ways in a position to do. Due to the delays
experienced in obtaining permits, considerable
coal has accumulated at the piers and prices
have eased 4 and 5 shillings per ton on the
grades most traded in. Best and second best
grades of Admiralty are out of the market.
Ordinary seconds are quoted at 24 to 25 shil¬
lings; best drys at 24 shillings to 25 shillings;
black veins at 25 to 26 shillings; western val¬
leys, 23 to 24 shillings; best bunker smalls, 20
to 22 shillings 6d. A Greek firm was said to
be in the market for 50,000 tons of second Ad¬
miralties, but quotations were subject to
licenses being obtained to export, also the
Admiralty’s permission to release such coals.
Due to the heavy accumulations Monmouth¬
shire coals were weaker. Patent fuel makers
have had numerous inquiries and nominal quo¬
tations ranging from 33 shillings to 35 shil¬
lings. The Algerian states are in the mar¬
ket for about 40,000 tons.
Some recent freight fixtures from Cardiff
have been as follows:
To Boulogne, 15 shillings 2d; to Bordeaux,
22 fcs,; to Gibraltar, 15 shillings; to Genoa, 24
shillings 6d; to Lisbon, 18 shillings; to Mar¬
seilles, 32 fcs.; to River Plate, 21 shillings; to
Rio, 21 shillings 6d; to Algers, 26 fcs.; to Bar¬
celona, 20 shillings; to Naples, 20 shillings lOd,
Baltimore Coal Exports.
For week ending August 28th, Baltimore’s
exports were:
Cargo Coal. Bunker.
Aug. 23 — Br. S. S. Claverest, Cuba . 6,100 300
Aug. 23 — Br. S. S. Allanton, Italy . 5,866 1,260
Aug. 24 — Gr. S. S. Andros, Greece.... 4,407 650
Aug. 25 — Gr. S. S. Geargios, Italy . 5,057 550
.\ug. 25 — Br. S. S. Evandale, Italy.... 5,150 600
Aug. 26 — Br. S. S. Newstead, Cuba... 4,000 150
Aug. 26 — Br. S. S. Harmattan, Italy... 6,200 830
Aug. 26 — Swed. S. S. Roland, Sweuen. 6,243 600
Aug. 26 — Ital. S. S. Liguria, Italy . 4,435 984
Aug. 27 — Gr. S. S. Otbon Stathalos,
Uruguay . 3,335 1,030
Aug. 27 — Br. S. S. Ecclesia. Italy . 5,300 1,120
Aug. 27 — Gr. S. S. Orion, Italy . 4,300 800
Aug. 28 — Br. S. S. Sitmouth, Italy.... 5,300 1,000
Aug. 28 — Nor. .8. 8. Senator, Cuba.... 971 250
Total . 66,670 10,124
Coal Freight Charters.
Strs. Eccelsia (Br.) and Sidraouth (Br.), Baltimore
to west coast Italy, coal. Private terms.
Str. Sentor (Nor.), Baltimore to Manzanillo, coal.
Private terms.
Schr. Josephine, Philadelphia to Porto Cabello, coal,
$4.75.
Str. Sleidrecht (Dutch), Virginia to Bahia, coal, 44s.
“September.”
Str. Jula Mendi (Spain), Virginia to west coast of
Italy, coal, 41s 6d. “September.”
Strs. Allanton (Br.), Silvia (Ital.) and Liguria (Ital.),
Atlantic range to Italy, coal. Private terms.
Schr. A. J. Sterling (Br.), New York to Moncton,
N. B., coal, $1.90.
Schr. M. A. Bellerwill (Br.), New York to Yarmouth,
N. S., coal, $1.65; back from Bridgewater, N. S., lumber.
Private, terms.
Str. Constantia Embiricos (Greek), Virginia to Buenos
Aires, coal, 33s 6d. “September.”
Schr. Alice May Davenport, Norfolk to Rio Grande
do Sul, coal, $9. Substituted for the James B. Brake.
Str. Gurre (Dan), Philadelphia to Coquimbo, coke,
$12. Option coal and coke, $6.50 and $11.50, respec¬
tively.
Strs. Morte (Span.) and Ellin (Greek), Virginia to
west coast of Italy, coal, 41s 6d.
Str. Roland (Swed,), Baltimore to Gothenburg, coal.
Private terms.
Str. Evandale (Br.), coal, Baltimore to Savona,
with options. Private terms, ^ot.
Str. Liguria (Ital.), coal, Baltimore to west coast
of Italy. Private terms, spot.
Str. Allanton (Br.), coal, Baltimore to Tarento. Pri¬
vate terms, spot.
Str. Hellenic (Swed.), coal, Baltimore to Sweden.
Private terms, spot.
Str. Oaklands Grange (Br.), Norfolk to Marseilles,
coal, 37s. ^ j j
Schr. James B. Drake, Norfolk to Rio Grande do
Sul, coal, $9. “September.”
Schr. C. F. Cressy, Baltimore to Porto Rico, coal.
Private terms.
Str. Senator (Nor.), Baltimore to Manzanilla, coal,
private terms.
Schr. F. C. Pendleton, Philadelphia to St. John, N. B.,
coast. Private terms.
Str. Hassel (ex. Merity), Virginia to Buenos Aires,
coal, 33s 7!^d.
Str. Silverton (Br.), Baltimore to River Plata, coal.
Private terms. .
Str. Charitou (Br.), Baltimore or Virginia to Piraeus,
coal, 41s 6d. “September.” _
Strs. Titania (Br.) and Sesostris (Greek), Baltimore
to west coast of Italy, coal. Private terms.
Foreign Freight Rates.
W. W. Battie & Co., Produce Exchange,
New York, report as follows under date of
August 30th:
During the past week we chartered a num¬
ber of steamers to load coal for South Amer¬
ican and West Indian ports. Plate rates are
practically the same as a week ago. Mediter¬
ranean rates are firmer; several steamers were
chartered last week at 41s 6d.
We would quote freight rates on coal by
steamer as follows:
West Coast of Italy . 41s 6d@42s
Marseilles . 39s @40s
Barcelona or other good Spanish port . 38s @39s
(.'^anish dues for account of cargo.)
NOTE. — Charters for Italy, France and
.Spain read; “Lay days to commence
on steamer’s arrival at or off port of
discharge Is per net register ton per
day demurrage.”
Montevideo about . 33s Cd
Buenos Aires or La Plata, about . 33s 6d@34s
(Above quotations on Plate coal by Brit¬
ish steamers. Neutral steamers are
more difficult to obtain and the rates
are always higher.)
Rosario, about . 35s
Rio de Janeiro . 34s6d@35s
Santos . 36s @36s
(Consignees paying docas dues.)
Valparaiso or Callao, about . $7.00
Havana . 2.50@3.00
Cardenas or Sagua . 3.00@3.30
Cienfuegos . 3.25@3.50
Port of Spain, Trinidad, about . 3.75
St. Lucia . 3.50@3.7.1
St. Thomas . 3.00 @3.2.5
Barbados, about . 3.75
Kingston . 2.75@3.25
Curacao . 3.25 and p. c^
Sarstiago . 2.75@3.25
Guantanamo . 2.75@3.25
Demerara . 4.00@5,00
Bermuda, about . 3.00
Vera Cruz . 3.25@3.75
Tampico . 3.25@3.75
Export Trade Briefs.
For the year ending June 30, 1915, the United
States exported 112,351 tons of bituminous and
4,292 tons of anthracite to Porto Rico. This
compares with 111,877 tons of bituminous in
the year ending June, 1914, and 4,663 tons of
anthracite for the same year.
From the opening of the Panama Canal.
.\ugust, 1914, to June 30th of this year, 56,312
tons of cargo coal was handled from the At¬
lantic to the Pacific; 28,212 tons were shipped
from the Atlantic seaboard ports to South
American ports in the Pacific; 19,170 tons go¬
ing to the Pacific coast of the United States;
930 tons to the Far East; 10,700 tons went
from Cardiff to unknown destinations. There
were 14,193 tons of coke to pass through the
canal, 2,350 tons from Philadelphia to Nou¬
mea; 1,877 from England to San Francisco, and
9,996 tons from the Atlantic seaboard to South
America.
Coal-peat fuel has been utilized in Canada
somewhat extensively, the peat being mixed
with coal breeze and then pressed into
briquettes. Such fuel has been found efficient
and economical. Now it is reported that
chalk, of which there are large deposits in
Canada, can be converted into profitable fuel.
The chalk is first pulverized and then com-
liined with a certain percentage of breeze and
solidified tar, and then compressed into small
briquettes, which are said to have a high cal¬
orific value, to burn freely and to be smoke¬
less.
Columbus Contracts Let.
On readvertised bids for municipal fuel pur¬
poses, contracts have been awarded as follows :
.Main pumping station. West Virginia, $1.40 a
ton, Elk Coal Company ; municipal light plant.
Hocking, $1.19 a ton, Victoria Coal Company ;
garbage reduction plant, $1.19, Victoria Coal
Compan}’ ; city hall, parks, water works shop,
•State street yards and recreation centers, $2.I7J4
delivered, M. A. Suydam & Co. All were Colum¬
bus concerns. Daily consumption of the pumping
station is estimated at twenty-four tons, of the
municipal light plant fifty-five tons, and of the
garbage reduction plant twenty-five tons. Ac¬
cording to the city chemist, to whom was put up
the controversy as to the relative cheapness of
Hocking and West Virginia bids. Hocking makes
the best showing from the economical standpoint
on the three bids awarded that field.
The Buffalo State Hospital is looking for a
supply of slack coal for a period of six months
from October 1st. Bids are to be opened Sep¬
tember 8th by the Purchasing Committee for state
hospitals, room 138, Albany, N. Y. The quantity
needed is about 6,000 tons.
Johnstown Mine Explosion.
Johnstown, Pa., August 31.— (Specuil Corre¬
spondence.) — Sixteen men are dead and a score
or more badly injured as the result of an ex¬
plosion in the Orenda No. 2 mine of the Mer¬
chants Coal Company at Boswell.
The explosion occurred during the forenoon,
but it was night before the full extent of the
accident was known. Rescue parties sent out six
injured men during the afternoon, two of whom
died later, one at the mine mouth and the other
in the Memorial Hospital, this city. There are
three others in a critical condition at the hospital
here.
This evening the rescue parties reached the
part of the mine in which the explosion occurred
and took out fourteen bodies. None has been
identified as yet.
It is said that a fall of rock opened a gas
pocket, which was fired by an open lamp. After
damp killed most of the victims.
THE BLACK DIAMOND
[September 4
194
General Review.
Domestic Prices Rise Due to Increased
Orders and to Fear of an Acute
Car Shortage.
The actual development in the national coal
trade within the last week has been first a big
increase in orders for domestic coal. In some
sections the increase was modest but perceptible.
In others it amounted to as much as 100 per cent
of existing business. The cause for the increase
was quite different in different places. In many
cities it was due to cloudy and cold weather,
waking the householder to the appreciation of the
fact that winter is approaching. In very many
districts it was due to warm weather with sun¬
shine which dried up the roads and allowed the
farmers to haul coal.
The development of second importance was
an increase in price. In some places this was
modest, being only five cents a ton. In other
places the rise amounted to twenty-five cents.
The average perhaps is close to fifteen cents.
Quite a factor was growing apprehension of a
car shortage. In some districts this is not felt
at all. In other sections it is just beginning to
appear. In one or two places it is quite pro¬
nounced. The trouble does not seem to be in
actual shortage of cars, but a shortage of mo¬
tive power with which to move the cars.
The third important influence is the return
of activity in the exports of coal. Both Baltimore
and Philadelphia say that while actual shipments
are not up to those of June and July, they are
rapidly approaching that figure and inquiries for
future business are very attractive.
Another influence of some importance is the
movement of coal up the lakes. For a good part
of the year the vessels had no down-bound car¬
goes of iron ore because the steel mills thought
they had nearly enough to carry them through.
Now, however, the steel mills are running to
capacity to fill export orders, and in some places
operation has been interfered with by the lack
of iron ore. The movement of that commodity
is consequently quite heavy now. This brings
into commission a great many boats which had
been idle and these are carrying coal up the lakes.
This movement is aided by the fact that many of
the upper lake coal docks have had such an in¬
different movement to the interior, they did not
believe that the season was going to develop any
active demand. The latter part of August
changed this forecast materially and the appear¬
ance of September indicated something approach¬
ing normal demand. As a consequence coal com¬
panies are shipping heavily to the lakes.
Coke interests make the statement that their
business is in better condition today than it has
been in four years. For one thing, the steel mills
are running to full capacity and many foundries
are doing likewise. This calls for the full ton¬
nage of metallurgical coke. Naturally the ovens
are running to capacity and the situation is quite
strong. This has a double effect upon the coal
trade. It calls, of course, for a big tonnage of
coal moving to the coke ovens and that is
strengthening the prices of slack, but in order to
produce slack, there is an increased production of
lump and egg. Were it not for the quite heavy
demand for domestic fuel, this might easily re¬
sult in the congestion of market.
Strength of domestic coal is a conspicuous
factor in that market. As indicated, in places,
the demand is 100 per cent heavier than it was the
early part of August. Everywhere it shows a
decided improvement. This has two causes. The
first, of course, is the fact that neither retailers
nor householders had stored coal during the sum¬
mer to anything like normal amounts. Septem¬
ber must, therefore, supply its regular tonnage
plus a proportion of the amount not stored. The
second is that August towards the end of the
month was quite cold. Household fires were
quite common and the householder was not sure
that winter had not set in much ahead of sched¬
ule, therefore, the householder bought, forcing
the retailer to buy.
The anthracite situation is commanding ana¬
lytical attention, especially in the east. There is,
for example, an apparent shortage as shown by
production figures up to September first of about
two million tons. Those who have studied closely
say that this must be multiplied by two and,
therefore, the real shortage is near four million
tons, the additional amount having been sub¬
tracted from storage. Since the next four
months are ones in which the largest amount of
anthracite goes to the ultimate consumer, the
question as to whether there will be a shortage
and a rise in price.
Chicago Market.
The Buying of Domestic Coal Is Boom¬
ing, Cars Are Short and Screen¬
ings Are Easier.
Office of The Black Diamond,
Chicago, September 2.
For the first time in about four years the Chi¬
cago domestic coal market has been on a genu¬
ine boom for the last four or five days. Some
sales agencies said it looked like old times to
have orders coming in by telegraph and tele¬
phone ; to have the mines sold up for some time
ahead of production, and to have users of coal
urging delivery. That is the condition in which
the Chicago market has been, especially on west¬
ern coal, for the better part of last week. This
is so despite the fact that prices on the average
are nearly fifteen cents a ton higher for Septem¬
ber than they were for August delivery.
The question of orders is not what is bothering
the sales agencies, because those are coming of
their own accord. The thing that is bothering
them is the supply of cars to make deliveries.
One operator, reporting on the situation in south¬
ern Illinois, said that only a few empty cars were
on track, which was only a small percentage of
the cars needed and of the number that has been
available. This was annoying, but it is explained,
not by the absence of cars, but by the fact that
loads and empties are held on sidings because the
railroads have not the power to move them and
move the crops also.
Screenings are easier. In Chicago proper one
and one-half inch screenings of ordinary quality
have sold as low as fifty cents a ton, with sixty
cents considered a good figure. Two-inch screen¬
ings of better grade are selling from sixty-five to
seventy-five cents. The highest grade screenings
are selling from seventy to seventy-five cents.
The increased production of lump coal naturally
increases the production of fine coal.
Demand for anthracite has gained materially
within the last week. It is impossible to get as
yet a full statement of the buying over the whole
territory reached through Chicago, but indications
are that while the movement is heavier, tonnage
is not quite up to normal, owing to the competi¬
tion of other fuels. However, the demand shows
vast improvement.
On the 1st of September, the producers of
smokeless coal put out a circular of $1.40 on
mine run and are holding to it. The demand
improved considerably because, for several days,
the apartment houses had to maintain fires. Both
in price and in tonnage the situation is improved.
Lump and egg were easy for a few days because
the operators were increasing production in order
to take care of the demand for slack. In the last
few days buying has improved all over the west¬
ern territory and the coal is again firm at circular
of $2.25. Prices on Thursday were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 4.30 2.25
Somerset county operators are beginning to
get the market they have been waiting for. When
prices were low they did not care to tie them¬
selves up on a lot of cheap business. Now that
buying is improved, they realize the wisdom of
their policy, as prices are stronger and orders
increase. The leading mines have not advanced
the circular, but that will come soon on mine run.
They quote $2 on lump and egg. Prices up to
Thursday were :
F. p. B. F. p. B.
Somerset County — Chicago. Mines.
Mine run . $3.30 $1.25
Lump and egg . 3.75@4.05 1.75@2.00
There has been something approaching a spurt
in buying of Hocking coal this week. This cornes
at the time when some of the mines were begin¬
ning a belated movement up the lakes. So the
supply of coal for the western territory is not
large unless some mines which have been closed
down are opened. The situation is improved
vastly, with indications of a rise in price of ten
cents a ton soon. The market up to Thursday
was :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Ij4-inch lump . $3.15 $1.50
Orders, lately, for splint coal have been more
abundant. The sales agencies have not beeen ac¬
cepting the low prices which prevailed only re¬
cently and today $1.15 is the minimum, with $1.25
a very common figure. The prices up to Thurs¬
day were :
Kanawha —
l>^-inch Himp .
The demand for eastern
F. O. B. F. O. B.
Chicago. Mines.
. . .$3.05@3.15 $1.15@1.25
Kentucky coal has also
shown an improvement and prices generally are
stronger. One dollar and sixty cents is now
about the minimum on any good grade of coal,
while $2 per ton is being obtained for the best
grades at the mine. Prices up to Thursday were :
^ F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.40@3.90 $1.50@2.00
Egg . . . . . 3.25 1.35
According to indications printed in the last
report, most of the operators in Franklin county
advanced their prices on the 1st of September
to $1.75 for lump, egg and No. 1 nut coal and
$1.40 for No. 2. Rather than causing any falling
off in demand, the increase in price was accom¬
panied by an increase in buying. Some of the
mines are sold up for several days ahead and
report some difficulty in getting enough cars to
move the coal. Mine run coal is selling from
$1.10 to $1.15 and screenings are a trifle easier
at sixty-five to seventy cents. Prices up to
Thursday were:
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2-inch screenings. . . ,
F. O. B.
Chicago.
$2.80
2.80
2.80
2.45
2.15@2!20
1.70@1.75
F. O. B.
Mines.
$1.75
1.75
1.75
1.40
1.10@1.15
.65@.70
One Williamson county operator put out a new
circular this week on lump, egg and No. 1 washed
coal at $1.75; No. 2 washed, $1.40; and No. 1
dry screened nut at $1.50. The other operators
put out a price of $1.60 on lump and egg, $1.75
on No. 1 washed, and $1.40 on No. 2. All of them
show increases in orders, as the retailers are
buying to get in some coal before the advance in
freight rates takes effect. The domestic sizes
therefore are booming, but steam coal is not mov¬
ing very well. Prices up to Thursday were:
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.65@3.80 1.75
No. 2 washed . 2.45 1.40
The major Saline county operators on Septem¬
ber 1st issued a new circular naming $1.75 on
lump egg and nut, $1.40 on No. 2 nut, and $1.30
on steam lump. The mines are sold up for some
days ahead and the difficulty is to make deliv¬
eries, owing to growing shortage of cars. There
is a fair demand for mine run at $1.15, while
screenings are a trifle easier at seventy to seventy-
five cents. Prices up to Thursday were :
F. O. B.
Saline County — Chicago.
Lump . $2.80
Mine run . 2.20
Screenings . 1.75@1.80
lJ4-inch lump . 2.35
F. O. B.
Mines.
$1.75
1.15
.70® .75
1.30
Springfield operators advanced their circular
prices to $1.65 on lump, egg and nut. Orders
were much heavier than they have been, being
influenced in part by the cold weather which
spread over the country the latter part of August.
The demand for mine run coal and screenings
has been just fair, the latter being easy at fifty-
five to sixty cents on shipments from the mines
and fifty to fifty-five cents when on track. The
prices up to Thursday were :
F. O. B. F. O. B.
Springfield — Chicago. Mines.
Lump . $2.47 $1.65
Egg . 2.47 1.65
Nut . 2.47 1.65
Mine run . 1.87 1.05
Screenings . 1.37@1.42 .65@ .60
Knox county coal is unchanged in price as com¬
pared with last week, but the demand is better.
Prices up to Thursday were :
F. p. B. F. p. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . , . 2.37 1.50
Mine run . 1.87 1.05
Screenings . 1.67 .80
Clinton operators are still devoting most of
their output to the steam trade, but they have
had considerable increase in domestic orders
from the territory
near the mines. Prices up to
Thursday were :
F. 0. B.
F. O. B.
Clinton —
Chicago.
Mines.
Domestic lump .
. $2.27
$1.50
Egg .
. 2.07
1.36
Nut .
1.30
Mine run .
1.10
Screenings .
.70
The coke trade is decidedly better this week
than it was last. Steel mills are running to full
capacity, taking a great deal of coke, and this is
advancing the prices on foundry by about ten
cents a ton on the average. There is a demand
for about all the domestic coke that is produced
at price ranging about even with those previously
quoted. The market up to Thursday was :
F. O. B.
Coke — Chicago.
Connellsville . $4.85@5.00
By-product, foundry . 4.90@5.10
By-product, egg and stove . 4.75
By-product, nut . 4.75
Gas house . 3.85@4.00
No. 10]
THE BLACK DIAMOND
195
Pittsburgh Trade.
Demand from the Homes Added to That
of the Steel Mills Makes
Conditions Better.
Office of The Black Diamond,
1503 Oliver Building,
Pittsburgh, Pa., September 2.
If the naked truth must be told “September
Morn” finds a touch of frost in the atmosphere
that suggests a possibility of better demand for
coal for domestic purposes, and retailers are ex¬
periencing a little rush of small orders for
“home” consumption that augur well for better
things to come — indicating that coal cellars and
bins are empty and the winter supply as yet un¬
provided. Jobbers have not as a general thing
been stocking, and retail yards are practically
bare, hence the explanation of numerous hurry up
orders for one and two car lots for local delivery
that have been passing through the ’phones — and
those who have delayed are meeting with dis¬
appointment in the expectation of lower prices,
for while the market for months past has been
a buyer’s market, now the tide has turned and
the seller is to have an inning.
Generally speaking the market is unchanged
from that of a week ago, save that prices are
more firm and an upward tendency shown all
along the line. A call on the leading producers
develops a decided betterment as to sentiment
and the fact that offers of buyers for coal at
past low prices are being refused in many in¬
stances shows the confidence of the producer in
the near future.
Quite considerable small demand has developed,
and largely increased shipping orders on existing
contracts seems to be the order of the day. Slack
has been a leading feature for some days, with
a short supply and advancing prices. _ No one
seems to have any quantity on hand, owing to the
restricted mining operations of months past, and
the light demand for screened coal. The better
brands of gas slack are quoted today at sixty-
seven and one-half to seventy-five cents spot, and
eighty to eighty-five cents for October and No¬
vember deliveries, or up until the close of the
lake trade, while the opinion is voiced that slack
should and soon will be bringing $1. Other
coal quotations remain practically the same as
given here last week. The only larger inquiry
we meet with today is for 5,000 tons mine run,
two thousand tons three-quarters lump, and 2,000
tons of slack per month for one year from this
date, names not given, and considerable hesi¬
tancy as to prices is being shown by parties quot¬
ing. The market, as near as can be quoted,
ranges about as follows, f. o. b. Pittsburgh :
Gas slack . $0.65 @$0.75
Steam slack . 55@ .65
Mine run . 1.10@1.20
^ screened . 1.25@1.35
5/4 screened . 1.30@1.40
The Pittsburgh Coal Company has put three
of their new mines on the line of the Montour
Railroad into working the past month. These
are new operations now active for the first time ;
another indication of better conditions. The
mines of the Meadowlands Coal Company, in the
same territory, lately passing into the hands of
receivers, are being operated by Messrs. Theiss
and Boggs, receivers, awaiting court orders as to
a final disposition of the properties.
Officials of the Pittsburgh Coal Company an¬
nounced yesterday that mine No. 10, near Athens,
Ohio, would begin operations September 3d, after
being idle nine months. These and other factors
all bear on the market and have a bracing effect
that helps weather conditions to strengthen prices.
Local stock operators are carefully watching
the operations of the Pittsburgh coal issues,
which are standing fairly firm, the preferred even
making a new high record in a sliding market.
Close observers believe that this stock is being
bought by outside interests in big blocks, but so
carefully that the price is not run up. It is
thought the outstanding indebtedness and back
dividends will shortly be paid, but as absolutely
no information is being vouchsafed by officials
of the company, any operations in this stock must
be considered as speculative. It is understood
the company will go into the coke business on
a moderate scale and the contracts for a battery
of coke ovens will be let in the very near future.
The Coke Trade.
Coke maintains its strength also, and operators
are very firm in their belief that the next few
weeks will bear the fruit that they have been so
long hoping for. There is little free coke in the
yards now, and little accumulating, and while no
quotable change of prices can be said to have
taken place, prices for further than 1915 are not
being quoted. Some small lots of foundry have
been marketed during the past week as low as
$2.25, but the following figures represent stand¬
ard grades :
Prompt furnace . $1.50@1.60
September furnace . 1.60@1.75
Contract, last quarter . 1.80@2.00
Foundry, spot . 2.40@2.50
Foundry, contract . 2.50@2.65
The by-product coke question is entering the
field to a considerable extent, in various ways.
A large producer of both coal and coke informed
the writer yesterday that he was now operating
about 750 of his coke ovens, but that over 500
were still idle, and that he would not blow them
in at present prices, as he was now selling his
coal more profitably to by-product ovens, and that
the coal orders from such were taking his sur¬
plus output today and would take more.
The labor situation, while in nowise acute, is
taking attention, and miners are wanted today in
various sections in the Pittsburgh-Connellsville
districts. The Jamison Coal & Coke Company,
the Pittsburgh-Westmoreland Coal Company and
others require additional forces at their various
operations, and the call continues to come from
West Virginia and Kentucky for help.
Pittsburgh Personals.
Mr. Gryce, sales manager of the Carnegie Coal
Company, is lost to the trade, by virtue of a
month’s vacation.
M. F. McDermitt, general sales manager of the
Four States Coal Company, is spending a week
with the lake trade and other northwest interests.
George Paul, vice-president of the Common¬
wealth Fuel Company, returned today from a
business trip east, in the interests of his com¬
pany.
J. G. Geegan, general manager of the Clyde
Coal Company, who has been ill at home for
some weeks, is convalescent again and will be on
duty in a few days.
H. R. Hyndman, of the Washington Coal &
Coke Company, who has been spending a month
in the wilds of Algonquin Park, Canada, alone,
save the company of his guide, returns to his
office in the First National Bank building today.
John M. Jamison, president of the Jamison
Coal & Coke Company, who was reported in The
Black Diamond New York news, of August 31st,
by mistake, to have returned from France, is still
abroad, and will probably remain there for some
time yet, as no definite date has been set for
his return.
A coal transaction involving nearly 5,000 acres
was closed last week between the Rochester &
Pittsburgh Coal Company and the Buffalo &
Susquehanna Coal & Coke Cornpany, two of the
largest operating corporations in the bituminous
coal district. For 2,019 acres of coal in Jeffer¬
son, Clearfield and Armstrong counties, the
Rochester & Pittsburgh Company has traded to
the Buffalo & Susquehanna Company a slightly
larger acreage in Indiana county, in the White
Bush Flats region.
Joseph A. Donnelly recently sold 554 acres of
coal and limestone land in Washington town¬
ship, Butler county, to the Pittsburgh Limestone
Company, but the amount of money which
changed hands was not made public. The royal¬
ties paid for limestone lands in the vicinity of
the property which was sold amounts to be¬
tween $1,200 and $1,500 and on coal lands it
averages about $400 per acre. According to the
figures the value of the land sold will probably
amount to $1,000,000. The sale is one of the
largest transactions in coal lands which has ever
been made on Butler county coal property.
Eighteen men were killed and a score injured
in an explosion at Orenda mine No. 2 of the
Merchants Coal Company at Boswell, Pa., yes¬
terday. Several of the si.xteen unidentified dead
are of American birth. All of the bodies are so
badly burned and blackened that identification
was impossible tonight. Practically every man
in the path of the explosion and in the workings
reached by after-damp was killed. The injured
list shows only three men. The explosion oc¬
curred deep in the mine. The roof in a room
dropped, opening a gas pocket which ignited from
an open lamp. Several bodies were taken from
this room, also charred so as to be unrecog¬
nizable. Rescue squads started into the mine
within fifteen minutes after the explosion oc¬
curred, but it required hours for them to make
their way to the deeper drifts. Three hundred
men were in the mine when the let-go came.
Detroit Trade.
Detroit, Mich., September 2. — (Special Corre¬
spondence.) — Though orders for steam coal are
still of very moderate size the frequency with
which they are being booked continues to impart
a stimulating effect on the Detroit market and
shippers assert that the situation at present is
much more satisfactory and by far more encour¬
aging than the conditions under which business
has been done for several months past.
With the rather steady demand for stock a
tendency toward greater firmness of prices is ap¬
parently developing. In the repetition of small
orders shippers see proof of the lessened move¬
ment of consignment coal to the Detroit market.
That consignment coal is still being brought into
Detroit, the shippers do not dispute, but with the
quantity of such stock curtailed, the amount that
is being put on the market at forced sale has
diminished to a point where consumers in search
of cheap coal are quite often unable to find any
available when they find it necessary to buy.
After a few experiences of that nature, the
consumer, the shippers say, is more willing to
come to a realization of the fact that by ordering
his stock on a mine shipment basis, he will be
certain to have a supply on hand when it is
needed and of the character and quality he de¬
sires, even if it does cost a few cents a ton more
for the coal.
In the domestic coal trade the outlook also is
taking on a slightly more encouraging aspect, the
shippers say. Following a summer of heavy rain¬
fall and low temperatures, the weather for the
last week has been of a brand more suggestive of
October or early November than of late mid¬
summer.
Atmospheric conditions have had a tendency to
direct attention of domestic coal users to the
extent of their supply on hand, much earlier
than in previous years. While the amount of
business resulting from the chill weather is not
yet large it is expected that, with a few days
more of such weather the buyers of domestic
coal will be coming into the market in consider¬
able numbers.
The fact that many families are now returning
to their homes after having spent the summer at
various outing resorts, also is counted on to add
very materially to the volume of business in
domestic stock in the next few weeks. The same
circumstances are expected to bring a stronger
activity in the retail distribution of anthracite,
this being strengthened also by the circumstance
that October 1 will bring an advance of fifty
cents a ton on hard coal for domestic consumers
in the local market.
The rail-lake movement of coal is far short of
the quantity usually handled at this season of the
year.
Prices in the Detroit
market on mine
shipment
orders are :
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
. 1.10
2.50
Mine run .
. .90
2.30
Slack .
2.15@2.25
West Virginia Splint —
Four-inch lump .
. 1.50@1.75
1.90@2.15
Two-inch lump .
. 1.25@1.40
2.15@2.30
Three-quarter .
. 1.10
2.50
Mine run .
. 1.00
2.40
Nut, pea and slack.
1.95@3.05
Smokeless —
Lump and egg .
. 2.25
3.85
Nut .
. 1.75
8.35
Slack .
Open
Mine run .
. i.25
2.85
Kentucky Splint —
Lump .
. 1.60@1.75
$3.00@3.15
Egg .
. 1.25@1.40
2.66@2.80
Nut, pea and slack .
. .65
2.05
Fairmount —
Three-quarter steam lump..
2.25@2.35
Mine run .
. 70@ .80
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump....
. 1.50
2.65
Shaker egg and nut .
. 1.15
2.30
Domestic lump .
. 1.35
2.50
Three-quarter lump .
. 1.25@1.30
2.40@2.45
Mine run .
. 1.00@1.10
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
. 1.15
2.30
Mine run .
. 1.05
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
. 2.50
3.65
Cambridge —
Three-quarter lump .
. 1.20
2.35
Mine run .
. 1.10
2.25
Pomeroy —
Two and three-inch lump. .
. 1.60
2.75
Egg .
. 1.35
2.50
Slack .
Open
James DeWolfe, after attending a reunion of
his Civil war regiment in Mt. Vernon, Ohio, and
spending a few days in Columbus, is back in
Detroit, where he is the representative of the
Pittsburgh and New Pittsburgh Coal Companies.
196
[September 4
Cincinnati Trade.
Demand Is Improving Slowly and Prices
Are a Shade Stronger — No
Advances Made.
Cincinnati, Ohio, September 2. — (Special Cor¬
respondence.) — With the opening of a new montli
the market contimics in much better shape and
lioth splint and smokeless dealers have little cause
to grumble. Tlie splint man, in general, reports
that the market’ is rapidly improving and that
prices are a shade better and that all that it is
reasonable to expect in a market that has been
demoralized so long, is coming. Some of them,
however, are yet complaining that they see little
difference. The improvement is here, they will
admit, but they do not enthusiastically hail it
and point to the dilatoriness of the country dealer
in placing his stocks as a proof that the market
is no better.
The fact, however, remains that the market is
better and is daily growing more secure and firm.
Demand for nut and slack is growing day by
day, legitimately, and, coupled with that is the
fact that mine run can be shipped either to the
sea coast or to the lakes at any time, now, that
cars can be obtained, and this gives relief. Better
prices rule also and but few loads of cheap, good
coal are now to be found. Within the past week
lump and egg, both wa.shed and unwashed, has
increased in demand and are growing much bet¬
ter in a domestic way. The cool weather that
was general at the beginning of the week had a
hint at Jack Frost’s coming that was too serious
to be overlooked. For two or three days last
week and for the whole period this week orders,
which had been suspended earlier were released
and shipped. Suspended orders were renewed,
the latter at the prevailing prices, some ten to
fifteen and twenty cents heavier than when they
were cancelled. Contracts have been closed and
new orders given, or former orders increased in
almost every local office.
Smokeless operators here are keeping their
eyes anxiously on Chicago to see what the deal¬
ers there have done toward keeping the pact for
prices in September, some of them having failed
to uphold August prices. In Cincinnati the Au¬
gust figures were held up to the schedule, and
these are unchanged for September: Lump and
egg, $2.2.5; run of mine, $1.40; nut, $1.25 and nut
and slack, or slack, $1.00 per ton. There will
be no deviation in this, and it is expected that
Chicago dealers will follow suit. Splint oper¬
ators are not in such secure position but they
are in better position than for many weeks, even
months. Cabin Creek district reports 2-inch
block, $1.35, run of mine slow and no market
practically, nut and slack sixty cents. Miller’s
Creek district reports four-inch block at $2.25 ;
lk2-inch block, $2.10; egg, $1.85; run of mine,
none free; nut and slack out of the market by
reason of contract requirements. Fairmont nut
and slack is out of the market but any chance
tonnage would be hailed at eighty-five cents, ac¬
cording to operators of that district. One and
one-half-inch lump in that field is quoted at
$1.40; three-fourths-inch nut and slack, $1.20;
mine run, $1.00. Other West Virginia districts
report run of mine ninety to $1.00; gas, eighty to
ninety-five; spot nut and slack, fifty-five cents;
contract, seventy-five and eighty cents; low grade
nut and slack has risen to seventy cents in most
of the districts. In the domestic sizes 2-inch
block is quoted and held at $1.25 and 4-inch at
$1.50 and $1.60.
In all these districts nut and slack are in great
demand and are very strong. Lump and egg, or
large and small block, as the case may be, are
growing in demand and will be firm by the mid-
<lle of the month at better prices, according to
the prognostication of many operators and sales¬
men who have been pessimistic up to this week.
Car shortage is here. Quite a number of West
Virginia operations have been interrupted in their
mining by lack of cars. Some have closed down
from one to three days for the past two weeks,
owing to scarcity of cars. On the C. & O. it is
more pronounced than on the N. & W. or the
others, but there is a slip frequently now in the
number of cars allotted and the number delivered.
The railroads deny that there is a shortage of cars,
but the operators will lift both hands and a foot
if required when they answer there is a shortage,
and a serious shortage, with worse conditions to
follow. If it were not for the car shortage the
labor shortage would have been evident even now.
It will become more and more in evidence as the
davs go by.
The Rip Van Winkles among the retail dealers
THE BLACK DIAMOND.
in the interior are slumbering still, and the empty
bins and yards will be snowed under if the pre¬
dictions of the operators come true, before the3f
are filled with cheap coal this season.
Cincinnati Trade News.
R. S. McVeigh has just returned from a visit
to the east.
C. F. Her, a dealer of Carnstown, Ky., was a
visitor in the city this week.
President J. M. Wright of the Raleigh Coal &
Coke Company is .still tryiiTg to enjoy the breezes
of the ocean in Rhode Island on his vacation with
his family.
Tom N. Mordue of the Castner, Curran &
Bullitt Company, Chicago office, and W. H. Har¬
ris, Qiicago, representative of E. L. Hedstrom
& Company, were in Cincinnati this week.
The Consolidation Coal Company, through T.
11. Richardson, local manager, has renewed con¬
tract with the Factory Power Company of Oak¬
ley, which serves power to about a dozen large
manufacturies of that suburb of Cincinnati, for
20,000 tons of coal for the ensuing year.
Bernhard Freudenstein, manager of the foreign
department of the Chamber of Commerce, is in
Europe traveling in the interest of the business
of the city. He sends back letters frequently,
containing information and coal orders for Cin¬
cinnati coal companies. He is quite successful m
getting coal men in touch with interests in neutral
Europe, and also some of the belligerent coun¬
tries, in need of American coal and the continu¬
ance of negotiations between them are conducted
at close quarters and are generally fruitful of
good business for the Cincinnati coal interests.
Newspaper men, lawyers, and detectives have
been busily engaged in uncovering an unsavory
chapter in the life of John C. C. Mayo, the Ken¬
tucky coal baron, owner of millions in coal leases
and lands, whose life, from a backwoods school
teacher to a wealthy mine owner, reads like a
IMonte Cristo romance. A pretty widow, a young
son imputed to the millionaire coal man and
escapades in different parts of the country are
being dragged to light, regardless of the feelings
of the friends of the dead man. The story of
^the woman has been told to Cincinnati lawyers
and detectives and reproduced in the papers.
Nearly all the coal men of Cincinnati are out
of the city this week, scattered all over the coun¬
try. Kuper Hood is in New York. Frank B.
Stewart is in Philadelphia attending a directors’
meeting of his company, the Winifrede Coal Com¬
pany, after which he goes to New York. Hugh
Jenks is in the coal fields. Fred Legg is down
in West Virginia looking around among the
mines. E. J. Howe is at the Pocahontas mines.
L. ]\L Webb is at the mines. D. Cave is on his
vacation in Indiana and E. E. Minor is in the
east, trying to rest a few days. Alex Vowles is
on the road, despite the serious train accident in
a tunnel in West Virginia which laid him up a
few days. The absence of all these national
warmers from their usual places of business may
explain the recent drive made on their intrench-
ments by their old friend and enemy. General J.
Frost.
The close of the convention last week of the
National Commissary Managers’ Association of
America was marked by intense interest. Chi¬
cago was selected as the convention city for next
year. The business features of the convention
were very instructive to the membership and did
much to solidify the organization and will tend
to make it more effective. The addresses were
pertinent, to the point and very instructive and
entertaining. The social features were well en-
joj'ed by the visitors and delegates of whom there
were close 800. The election resulted in a re-
election of Tracey D. Luccock of Chicago, secre¬
tary-treasurer. Other selections were: J. Mil-
ton Bailey, Penland, N. C., president ; vice-presi¬
dents. G. A. Musson, Pacific Coast, Reed, Cal.;
A. M. Phillips, Altoona, Ala., Southern ; E. L.
Harlev. Warren, Ark., Central; F. S. Meyer, Hop¬
kins, Fla., Southeastern; John 1. Bellaire. Blaney,
IMich., Northern; J. W. Walters, Franklin, N. J.,
Eastern,
Cincinnati coal men were astonished this week
to learn that the executive committee of the
Splint and Gas Coal Association of West Vir¬
ginia had selected Tom L. Lewis, the well-known
labor leader and former president of the United
Mine Workers of America, as their secretary.
The Splint & Gas Coal Association of West Vir¬
ginia was formerly known as the High Volatile
Coal Association of the .state, but there was some
objection to the designation, “High Volatile,” and
it was abandoned, and, recently, the new name
was adopted. The organization combines to¬
gether all the companies not represented in the
association of the smokeless people and all those
outside the West Virginia Coal Operators’ Asso¬
ciation. The secretaryship of the new association
is practically an executive position and requires,
under the objects of the association, a high char¬
acter of executive ability as well as ability in
business administration. In the interim of find¬
ing such a man E. T. Hea.sley, private secretary
of Quinn Morton, president of the Imperial Coal
Company, and of the Imperial Coal Sales Com¬
pany was appointed assistant secretary.
Twin Cities Trade.
Minneapolis and St. Paul, September 2. —
(Special Correspondence.) — Coal market condi¬
tions in this territory are chiefly interesting on
account of the varied features, all of which seem
to contribute to delay in buying on the part of
large purchasers of coal. The delay in the season
and the presence of cold weather last week all
operated to prevent earh' threshing, hence a great
deal of coal in dealers’ bins for this purpose is
not moving out. It will probably be a couple of
weeks before threshing is in full swing. In the
meantime, unless household fires are a necessity,
it is not to be expected that dealers will buy very
liberally. Their bins are full and there is a re¬
luctance on the part of the average consumer to
purchase fuel until he absolutely needs it.
The recent advance in freight rates in western
territory will not affect anthracite prices in the
northwest. .\% a matter of fact, owing to the
advance in all-rail freight rates into some parts
of Iowa, Nebraska and Kansas, the territory for
the distribution of coal from the Lake Superior
and Michigan docks will undoubtedly be in¬
creased. Rail movement is practically prohibited
by the increased rate in much of that territory.
The full effect of the .advance in Illinois rates
is not yet apparent, but some indications of its
influence are already seen. Some of the milling
companies in the central and western part of
iVIinnesota are making tests of dock coal, with a
view to giving it preference if the cost per barrel
of flour shows up satisfactorily. One large mill¬
ing company has completed its test and has con¬
cluded to give smokeless screenings from Duluth
the preference, claiming that on the present rate
the Duluth coal will make a saving. The south¬
ern Illinois rate to this mill is $2.20 per ton and
the Duluth rate $1.40. Illinois coal will lose about
3,000 tons per annum in this one instance.
Dealers who handle Illinois coal, especially
Franklin county, have not yet reached a decision
as to their future plans. It is safe to say, how¬
ever, that those who have used any considerable
tonnage will continue to handle the coal the
present season, attempting to make an advance
in their retail price to cover the extra cost of
transportation. The full effect of the advance in
that branch of the business will not be apparent,
however, until next year. If the quality of the
coal will sustain a higher price in competition
with dock coal, undoubtedly some Illinois coals
will continue to be sold in this territory for do¬
mestic purposes.
Current quotations on leading grades of coal
sold in this market are as follows :
ANTHRACITE.
F. O. R F. O. B.
Duluth Minneapolis
and and
Superior. St. Paul.
Grate . $6.60 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 5.50 6.70
Buckwheat . 4.00 5.20
BITUMINOUS.
Splint, screened lump and stove. $3.30@3.40 $4.26@4.36
Splint, dock run . 3.10 4.06
Hocking, screened lump and stove 3.30@3.40 4.26@4.36
Hocking, dock run . 3.00 3.96
Youghiogneny, gas, lump and stove 3.30@3.40 4.26@4.36
Youghiogheny, gas, dock run . 3.10 4.06
Pittsburgh vein, lump . 3.30@3.40 4.26@4.36
Pittsburgh vein, dock run . 3.00 3.96
Poc.ihontis, screened lump or egg 4.75 5.71
Pocahontas, screened lump and
egg mixed . 4.50 5.46
Pocahontas, mine run . 3.25 4.21
Cannel, lump . 5.25 6.21
Smithing, bulk . 4.25 5.21
Smithing, in 100-lb. sacks . 6.00 6.96
Briquets, anthracite . 5.00 5.96
Briquets, smokeless . 5.00 5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows :
Southern Illinois chunks . $1.65@1.75 $3.85(®3.9.)
Southern Illinois egg . 1.65@1.75 3.85@3.95
Southern Illinois No. 1 nut . 1.65@1.75 3.85@3.95
Southern Illinois No. 2 nut . 1.25@1.40 3.45@3.60
Southern Illinois No. 3 nut . 1.10@1.25 3.30@3.45
Southern Illinois run of mine.... 1.15(S1.25 3.35@3.45
Southern Illinois 2-in. screenings .60@ .70 _ 2.80@2.90
Southern Illinois includes Franklin county.
Harrisburg and Williamson county.
No. 10]
THE BLACK DIAMOND
197
St. Louis Trade.
St. Louis^ Mo., September 2. — {Special Corre¬
spondence.') — The opening days of the fall mar¬
ket showed a brisk demand on all grades of coal,
especially in domestic sizes. Steam sizes are
holding on remarkably well. The southern Illi¬
nois mines are all running practically full, and
the standard mines are nearly so. Screenings
also are surprisingly steady for this time of year,
and are bringing good prices. Current prices
on standard coal are as follows :
Standard Coal
6-inch lump . . .
6.x3-inch egg . .
2-inch lump . . .
Steam egg ....
No. 1 nut .
No. 2 nut .
Mine run .
Screenings . . ■ .
F. 0. B.
F. O. B.
Mine.
St. Louis.
. .$1.20
$1.77^
.. I. 00
1.57)4
. . 1.00
1.57)4
. . .80
1.37)4
. . .90
1.47)4
. . .80
1.37)4
. . .85
1.42)4
. . .60
1.17)4
On Mt. Olive coal there is a better demand
from the north than locally, with prices as fol¬
lows :
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.40 $1.97}4
2-inch lump . 1.20 1.77J4
Screenings . 60 1.1754
On Williamson county coals the demand is
much stiffen than it has been for some time in
the past. Prices are getting steadier with the
advent of the first cool days. Operators are op¬
timistic over the way the orders are coming in.
Prices are as follows :
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.50
3x2-inch nut . 1.20
Screenings . 60
$2.2254
1.92 54
1.32)4
Franklin county operators are fairly swamped
with orders, which are pouring in. September 1st
showed a general advance of fifteen cents on
Christopher, with no decline in orders on the
first day of the increase in price. They are as
follows : ,
F. O. B. F. O. B.
Mine. St. Louis
6-inch lump, egg or nut . $1.75 $2.47J4
No. 2 stove . . . .• . 1.40 2.1254
Screenings . 70 1.4254
Anthracite has shown a big influx of orders
in the last few days, both from the city and the
surrounding territory.
Smokeless and coke are picking up consid¬
erably :
Anthracite — •
F. O. B.St. Louis.
Chestnut . $7.55
Stove or egg . 7.30
Grate . 7.05
F. O. B. F. O. B.
Smokeless — Mine. St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis
Gas house coke . $4.25
By-product coke (all sizes) . $4.50
The prices on Illinois soft coal f. o. b. East
St. Louis, Madison, Venice, or Granite City, Ill.,
are 2514 cents lower than the above quoted St.
Louis prices.
The Warren Coke Company have sent invita¬
tions to the entire coal trade in St. Louis for a
trip through their new by-product coke plant in
South St. Louis, next Saturday. A feature of
the trip is that the Warren people are going to
include a boat excursion, and take the members
of the coal trade from downtown to Carondelet,
v/hich is on the river, on the steamer Belle of
the Bends.
Duluth Trade.
Duluth, Minn., September 2. — (Special Corre¬
spondence.) — At Fort William and Port Arthur
last week nine coal cargoes were unloaded, only
one of which was anthracite. Three were in
-American bottoms and six in Canadian vessels.
Three more cargoes, two of them bituminous and
one anthracite, were reported en route, the latter
in an American bottom. The general outlook for
the coal trade in western Canada is much im¬
proved and it is expected that coal arrivals at
the Canadian head of the lakes will increase
from now on.
Figures will not be available for a few days
yet, showing the amount of coal receipts at the
Duluth-Superior coal docks during August, but
it is known that quite a comfortable increase will
be displayed. A good many more boats than in
July or previous months came up, a considerable
portion of them bringing anthracite. Vessel men
report that coal cargoes are easier to get now,
and that the near future augurs well in the vessel
trade in that line, which is something that they
have been devoutly wishing for. Of course, this
means a larger supply on western docks for the
coming winter than seemed likely a short time
ago.
A few days ago the Island Creek coal dock
in Duluth established an unloading record, when
8,600 tons of coal were taken out of the steamer
Adriatic in eight hours and twenty minutes. Two
hoisting rigs were used.
On Monday of this week the largest cargo of
coal ever unloaded at a dock in Superior was
discharged from the steamer Col. James M.
Schoonmaker, consisting of 13,560 tons of bitu¬
minous. She was unloaded at the Carnegie dock.
This, however, is not the largest coal cargo ever
received at the head of the lakes, for in 1913
the William P. Snyder brought 13,849 net tons,
which stands as the record. Last season the
Schoonmaker brought 13,203 tons from Ashta¬
bula to Duluth.
Coal shipments are picking up, according to the
superintendents of the docks at the head of the
lakes, and it is believed that they will soon reach
normal size. The demand is increasing from
the harvest fields and industrial demand is grow¬
ing. Business is picking up well in hard coal
also, orders being received from almost all points
of the northwest, and taken to be a result of
the prosperity insured by the enormous crops.
Yesterday an advance of ten cents a ton on
hard coal was announced locally. This is the
last advance of the year, the price holding until
spring as follows :
Egg . $6.85
Stove . 6.85
Nut . 7.10
Pea . 5.55
The Northwestern Coal Dock Operators’ Asso¬
ciation is holding a monthly meeting here today,
and operators from Chicago, Milwaukee, Green
Bay and other points are here. Many coal com¬
pany officials are here from Minneapolis and St.
Paul. The party left Duluth this morning on
the steamer Columbia, and started on a tour of
the bay, during which all of the coal docks were
visited and inspected. The business meeting of
the association was held on board the boat.
Cleveland Trade.
Cleveland, Ohio, September 2. — (Special Cor¬
respondence.) — Although it is growing somewhat
late in the season, it can not be said that lake
shipping, as a general proposition, is in a very
encouraging condition. It is true that some of
the shippers have had a fairly satisfactory busi¬
ness, but others have not fared so well. Generally
speaking, those producers who either have docks
at upper lake points or are interested in such
properties have fared better than those who have
depended upon their contracts for business. They
have been able to ship almost the usual amount
of coal, because of their storage facilities, but
others must depend upon the willingness of pur¬
chasers to take the risk of putting in full stocks
without the best of prospects for distribution.
Steam business has not shown much life for
the past several weeks. It is probable that nat¬
ural gas has cut a greater figure than usual this
season and many concerns have contracted with
the central station plants for electric power in¬
stead of generating their own current or con¬
tinuing to use steam power direct. Pittsburgh
slack for the past week has ranged from $1.55 to
$1.60 and in some cases perhaps a little higher,
while gas slack has sold as high as $1.70. The
demand has been somewhat more brisk than here¬
tofore, perhaps because of delay in some of the
shipments.
Prices of No. 8 coal for lake shipment are said
to be unsatisfactory in a general way. Those
who are compelled to sell to shippers can not ex¬
pect much of a margin, it is said, because of the
heavy offerings.
The demand for Pocahontas coal has been bet¬
ter the last week than for some weeks past,
because of an increase in the domestic sales
due to increasingly cool weather. Lump is sell¬
ing at the mines at $2.25 ; mine-run, $1.40, and
slack, $1.00. It is probable that some producers
have quoted better figures in certain instances,
but these are said to be standard prices. The
freight rate is $1.45.
Orders for Massillon coal are increasing in
numbers and size and operators feel they will
have a fair season. Lump is quoted f. o. b. here
at $3.20 ; nut, $3.20, and slack, eighty-five cents,
with a 70-cent freight rate. As these are cir¬
cular prices they will probably not vary, since
there is little necessity of producers bidding
against each other on this brand of coal.
Goshen coal is commanding its usual amount
of business and for the past week has been quoted
at $2.30 f. o. b. here for lump and $1.50 for slack.
The retail business of the city is said to be
fully a month behind the fall seasons of the past.
Neither the summer prices on anthracite nor any
other inducement resulted in the usual volume of
early sales and deliveries. Consequently, the de¬
liveries will be crowded into a much shorter
period this fall. For a week past orders have
been good and seemingly coal users have only
begun to realize that they must look after their
supplies. Anthracite, stove size, is selling at re¬
tail for $7.65 per ton; chestnut, $7.90. Poca¬
hontas ranges from $4.25 to $5.75 for lump, ac¬
cording to the quality and manner of prepara¬
tion. Nut is selling for $4.50.
Louisville Market.
Louisville, Ky., September 2. — (Special Corre¬
spondence.) — Very marked and definite improve¬
ment lias come about in the coal trade during the
past week or ten days, and producers, whole-
.salers and retailers at present are feeling optim¬
istic. Mines in the eastern Kentucky-Tennessee
fields are running nearly full time as an aver¬
age, and a number of mines with well known and
popular coal are entirely sold up for several
weeks to come. While an average advance of ten
to fifteen cents a ton in the market price of
domestic coal is realizable for the month of Sep¬
tember, this average still keeps the price below
the normal level of September prices during past
years. However the broadening demand, the fact
that prices are now on a basis which insures a
small margin of profit to most mines, is in itself
more encouragement than the coal trade has
known for many months.
Buying by the country trade is still backward,
owing to cold weather and continuous rains, and
when this starts, as it must within two or three
weeks, this demand, plus the already growing
demand from city consumers, should cause a
wave of buying that will be sufficient to put up
prices by October 1st, so that business, at least
for a term, will be restored to a healthy plane.
While no reports have been received as yet
of any shortage of cars, railroad people consider
that within the next thirty days some shortage
may develop. During the past year there have
been a great many new operations started, both
on the Lexington and Eastern branches of the
Louisville & Nashville and on the branch extend¬
ing into Harlan county. This great increase in
the number of operations, even if these opera¬
tions have been on a restricted producing basis
for many months past, has made the problem of
car supply and distribution more difficult, and
this, in view of the fact that railroad equipment
has been increased very little during the past year
— in fact probably shows a net decrease, due to
less promptness in repairing and replacing cars —
make it not at all improbable that a slight short¬
age will be experienced in a few weeks.
During the past several days abnormally low
temperatures over a great part of the south and
central part of the country have reminded coal
dealers and consumers of the fact that summer
is past and autumn is here. The change of sea¬
son may be expected to have a stimulating effect
on industries, and in that way help the steam coal
trade as \yell as bring retail dealers to time with
a realization that their stocks of coal in most
instances are very low.
Omaha Trade.
Omaha, Neb., September 2. — (Special Corre¬
spondence.) — A few days of sunshine, together
with the prospect of advances all along the line
in prices, has had quite a stimulating effect on
the local market. While no great amount of
business has been placed there has been a dis¬
position to get some coal placed and a few orders
to cover immediate requirements. The prices
have been firm and very little transit coal being
offered.
There has not been much change in the gen¬
eral business conditions in this territory other
than the natural activities following a few days
of sunshine.
The following market
prices prevail :
Southern Kansas —
Mines.
Omaha.
Nut .
$3.20
Slack .
2.70
Franklin Counly —
Lump . .
. 1.45@1.75
3.75@4.15
Egg .
. I.45@1.75
3.75@4.15
Nut .
. 1.4501.75
3.75®4.15
Williamson County —
Lump .
3.05@)3.90
Egg .
3.6503.90
Rock Springs —
Lump .
. 2.15
5.85
Nut .
. 1.60
5.35
Arkansas Anthracite —
lump .
. 3.70
6.60
Rroken sizes .
6.85
198
THE BLACK DIAMOND
[September 4
New York Trade.
Better Demand for Anthracite Being Felt
— Bituminous Storing Calls for
Big Production.
Office of The Black Diamond,
New York, September 2.
During the past week the anthracite de¬
mand has materially increased, this improve¬
ment being confined largely to eastern ter¬
ritory. The western trade is still very quiet
and shippers are hoping that September will
see a marked improvement in this direction.
Many dealers around New York city report
a better demand and this is taken as an in¬
dication that consumers are commencing to
buy coal earlier than in former seasons. Many
of the wholesale sales during the past week
for New York delivery will go into immediate
distribution, it is believed, and this will pave
the way for still further buying on the part of
these retail dealers during September.
The all-rail trade has shown considerable
improvement during the week. This trade
is far short of the tonnage coal that it ordi¬
narily has taken by September 1st, and it is
predicted that this trade will take a very mate¬
rial increased tonnage from now on. Through
the east, consumers are in much better con¬
dition to purchase anthracite coal than was
the ease last year, and dealers are looking
for a very radical increase in consumption
should the weather be seasonable. As was
pointed out in these columns last week, labor
is well employed now, and in many instances
at heavy increases in wages as compared with
former winter seasons. The war has brought
increased prosperity, and in practically all
the manufacturing territories the average con¬
sumer of anthracite coal has perhaps more
buying power than ever before.
It was announced on Wednesday that the
Interstate Commerce Commission had ex¬
tended the enforcement of the new anthracite
freight rates until December 1st. This will
give the anthracite roads two more months
in which to make their plea for a new hear¬
ing, should they decide to take this step.
In the meantime, it is believed that this an¬
nouncement will stimulate buying on the part
of those retail dealers who were hesitant
about placing orders, due to their anticipation
of securing the reductions in freight rates as
previously announced on October 1st.
The full winter prices on coal went into
effect on September 1st. At the moment at
New York harbor ports there is an ample
supply of the domestic sizes with prices on
individual coals ranging from ten cents to
thirty-five cents below the circular. Chestnut
coal is weak, with egg coal unfavored. One
hears the concessions made by the individuals
of thirty-five cents per ton on egg and about
twenty-five cents to thirty-five cents on chest¬
nut. Pea coal is in better demand and prices
this week are quoted all the way from $2.15
to $2.50, according to the quality and the
loading port.
The choice grades of No. 2 and No. 3 buck¬
wheat are practically out of the tidewater
market. No. 1 buckwheat is in better demand,
though not as strong as the other two sizes.
The miners are working on an average of
from four to five days a week.
On September 1st, the full winter price list
went into effect on anthracite, tidewater prices
being about as follows:
Upper
Lower
Ports.
Ports.
Broken .
. $5.10
$5.00
Egg .
. 5.35
5.25
Stove .
. 5.35
5.25
Chestnut .
. 5.60
5.50
Pea .
. 3.55
3.45
Special grades of Red Ash and other high
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
The Bituminous Situation.
The eastern bituminous trade continues to
show improvement, in spots, it is true, but of
sufficient tonnage in the aggregate to call for
full time production on the part of many op¬
erators and to put into use most of the equip¬
ment of some of the railroads.
While the general reports show spot trade
in most markets disappointing, and prices on
spot coals but little if any improved, it is
found, on the other hand, that most of the
operators having a good percentage of their
output under contract, are finding their cus¬
tomers calling for heavier shipments than
heretofore.
With the exception of the New England
railroads, practically all of the big eastern
roads are stocking coal. They are not buy¬
ing in the spot market but are calling on their
regular contractors to fill their cars, and as
a result of this very heavy demand, certain
operators who had made quotations on spot
lots have had to withdraw them.
One by one, the gas coal producers are
withdrawing quotations. A month or so ago,
these people were clamoring for orders. Now
they are finding a ready outlet for their ton¬
nage, and they are not seeking spot business.
There is a very good demand for slack. Re¬
cently some new Canadian business has been
offering for slack, which is desired in the
place of run of mine or screened on account
of the difference in the tariff charges. The
Reynoldsville slacks are pretty well sold up,
while the situation is so much better in the
Fairmont region that the prices have ad¬
vanced to sixty to sixty-five cents per ton.
While there is a fair tonnage of unsold coal
at tide, and at New York harbor points par¬
ticularly, the aggregate is not unusual. The
offerings include many of the inferior coals.
Choice coals are scarce in the offerings, and
are usually confined to odd cars left over after
filling out cargoes. Prices this week at New
York harbor ports range from $2.45 on in¬
ferior West Virginia and Pennsylvania coals
to $2.60 on medium grades, and from $2.70
to $2.90 on choice and fancy grades.
The Vessel Situation.
Coastwise vessel rates are unchanged. Off-
short rates are firmer, especially to the
Mediterranean. Rates to the Provinces
show a very heavy slump, now that the de¬
mand for vessels for taking anthracite has
slackened. Owners who formerly wanted
$2.25 to Halifax now offer at $1.40. Like re¬
ductions are also made to other ports in the
Maritime Provinces.
From Hampton Roads to Boston, eighty
to ninety cents is about the range; to Portland
and points east of Boston, from ninety cents
to $1. To sound ports, eighty to eighty-five
cents. From Philadelphia to New England
points, about five cents under the Hampton
roads rates.
From New York to Bridgeport or New
Haven, thirty cents; to New London and
Providence, forty cents; to Fall River and
New Bedford, forty-five cents; to Boston,
fifty-five to sixty cents.
Current quotations on bituminous coal in
spot lots are:
F. O. B.
Somerset County — Harbor.
Best grades . $2.85
Medium grades . 2.60
Ordinary . 2.55
Cambria County —
Best Miller vein . 3.00
Medium grades . 2.55
Cheaper grades . 2.60
Clearfield County —
Best grade . 3.00
Ordinary grades . 2.50
Indiana County —
Best grade . 2.80
Medium grade . 2.50
Maryland —
Georges Creek big vein . 3.15
West Virginia Splint —
Ordinary grades . 2.40
Best gas, j4-ineh lump . 2.65
Best grade, run of mine . 2.65
Gas slack .
F. O. B.
Mines.
$1.30
1.10
1.00
1.40
1.15
1.05
1.35
1.00
1.25
.95
1.65
.75
1.10
.90
.60® .75
New York Trade News.
W. A. Smith of David E. Williams & Co.,
Philadelphia, was calling on the New York
trade on Tuesday.
W. H. Thomas of the Flat Top Fuel Com¬
pany, of Bluefield, W. Va., was a New York
visitor this week.
L. A. Hickley of the Island Creek Coal Sales
Company, of Philadelphia, was a New York
visitor on Tuesday.
Abel Mishler, of the Blaine Mining Com¬
pany, No. 1 Broadway, has returned from a
vacation spent at Lake Spofford, N. H.
George A. Mclroy of Parrish, Phillips &
Co., No. 1 Broadway, has left for a trip to the
Panama-Pacific Exposition at San Francisco.
W. S. S. Rowland, of the sales forces of
the Lehigh Valley Coal Sales Company, has
returned after a two-weeks vacation spent in
New York state.
Harry Hosford, shipper for the Lehigh Val¬
ley Coal Sales Company, of New York, left on
Tuesday for a trip to San Francisco and the
Panama-Pacific Exposition.
Lemuel Burrows, vice-president of Castner,
Curran & Bullitt, Inc., No. 1 Broadway, spent
part of last week and this week on an auto¬
mobile tour up New York state.
Leon E. Muller, a retired retail coal dealer,
for many years in business at No. Ill King
street, Manhattan, died on Tuesday, August
31st, at his home on Staten Island at the age
of sixty-two.
W. R. McTurk, the well-known anthracite
operator with Philadelphia headquarters,
called on several of the New York trade late last
week while enroute to Maine, where he will
spend a brief vacation.
The McNulty and Neufer interests of
Scranton are said to have a lease on a sixty-
acre tract of coal land in the Hazelton dis¬
trict in the anthracite field. They are ex¬
pected to shortly build a breaker so as to
develop this property.
Edward Brevoort, Jr., of Frederic A. Potts
& Co., No. 143 Liberty street, met with an
accident to his right hand last week, which,
while not so serious as to keep him from his
desk, is keeping him from making his regu¬
lar trips to the golf course.
W. R. Minds and George Minds of the
Beulah Coal Mining Company, No. 120 Broad¬
way, went to Conifer, N. Y., on Wednesday
to attend the marriage of their brother, Ches¬
ter Minds, to Miss Doris Caflisch. Mr. Ches¬
ter Minds is superintendent of the Beulah op¬
erations at Ramey, Pa.
News has been received in New York of
the death on August 27th of Morgan Davis,
Jr., a well-known coal mining engineer ot
Scranton, Pa. Mr. Davis was well known in
New York city, where he sppt quite a lot of
time, being very active in this city during the
past two or three years in an effort to or¬
ganize a lot of the New River coal mines
into a big company, to be financed largely by
English capital. Mr. Davis was forty-eight
years old and his death was the result of
pneumonia.
Late last week the report of the W^estern
Maryland Railroad for the month of July was
made public, and it was so favorable that im¬
mediately the common stock of the company
made an advance of around three points. The
increased net is due to the new coal tonnage
that this road is securing by reason of the
traffic agreement entered into some months
ago with the Consolidation Coal Company,
The July gross amounted to $833,177, an in¬
crease of $120,747. The net after taxes was
$255,024, an increase of $88,773.
Joseph Morrison, Jr., president of the
Clarksburg Coal Mining Company of No. 61
Broadway, returned late last week from a
trip to his mines in West Virginia. Mr. Mor¬
rison states that the coal business in the
Clarksburg section shows improvement, the
eastern movement being especially improved.
Demand for slack coal is some better and
he finds prices on slack have advanced, sell¬
ing at sixty cents to sixty-five cents per gross
ton. Mr. Morrison says that the steel inter¬
ests have taken quite a lot of labor frorn
the coal mines and there is a likelihood of
labor shortage developing later on.
The New York coal trade was very much
shocked to learn on Monday morning of the
sudden death of Frank B. Cortnght of Cort-
right Coal Company of Phil^elphia. He
had visited many of the coal offices m New
York as recently as Tuesday of last week.
He was well acquainted in New York, having
been for a number of years a member of the
firm of W. A. Marshall & Co., of No. 1
Broadway. For a period of about five years
he was manager of the Altoona office ot
Righter & Marshall. Frank Cortnght was
looked upon in the trade as being one of the
most energetic and able of the younger men
engaged in coal, and a most brilliant future
was predicted for him. A good number of his
New York acquaintances went to Mauch
Chunk on Wednesday to attend the funeral
services.
No. 10]
THE BLACK DIAMOND
199
Philadelphia Trade.
Bituminous Coal Prices Have Advanced
from Five to Twenty-five Cents a
Ton — Anthracite Strong.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, September 1.
Price, rather than any other condition, has
been the general topic of interest in the trade
locally for some time past. With the coming
of September 1st, the general disposition has
been to take a firm grip on the question, and,
while the anthracite figures automatically ad¬
vance, the bituminous men have also had some¬
thing to say. Within the month advances from
five to twenty-five cents on the ton have been
noted, according to the locality and mining
conditions.
This week practically all of the bituminous
mines have seen fit to withdraw from the mar¬
ket any and all quotations that had been put
out for contract delivery. To use one sales
agent’s expression, “The consumer is being-
brought up with a short turn. For months
he has had the say-so as to price. The with¬
drawal of quotations has made him realize that
there is a new element in the trade. It is an
indication that the producer has the upper hand
and that he must set the price from now on.”
One of Philadelphia’s most trustworthy
barometers of trade is the pier business. That
there is a tightening even in spot coal is shown
by the fact that Port Richmond was nearly
clear of free coal this week and even the
Greenwich piers that have been crowded more
than usual in the summer months showed very
little accumulation.
While Somerset coal has not shown any fur¬
ther price climbing than was noted a couple
of weeks ago, yet the market is firm and it
would surprise no one were there a nickel or
a dime tacked on.
The underlying cause for this was the short¬
age of cars on the Burlington & Ohio lines
on August 27th and 28th. While this line has
promised to keep cars coming, general doubt
is expressed. The labor situation also is cut¬
ting a figure that sooner or later must be
reckoned with. Following is the quoted prices:
Best . $1.35@1.45
Medium . 1.20@1.30
Ordinary . 95@1.15
Contract quotations practically withdrawn.
A little heavier demand made on the mines
has changed the situation with Fairmont slack
and the price, which held around sixty cents,
was whittled down a nickel. On spot ship¬
ments the following prices have been made:
Gas coal, low sulphur, mine run . $1.10@1.20
Gas coal, mine run . 70@ .80
Three-quarter size... . 85@$1.00
Slack . 50@ .60
Some of the companies operating on the
Western Maryland have offered a price of
contracts running over short periods. De¬
pending on the quality of the coal, the range
has been from $1 to $1.10. The spot market
has been on another upturn, with most of this
coal being held at eighty-five to ninety-five
cents. These are prices to consumers with
five to ten cents reduction to brokers.
The Greensburg district has shown the full¬
est advance of all other soft coal fields feed¬
ing in here. Run of mine sold around a dol¬
lar up to the first of August. The heavy
buying by the Pennsylvania railroad has stead¬
ily sent the price up, and few mines have any¬
thing to offer. Prices quoted were:
Run of mine . $1.20@1.30
Screened . 1.35
Clearfield coals have been coming east
freely and for good Miller vein coal for spot
shipments prices at $1.25@1.35 have been
made. Contracts have been offered at $1.35(®
1.40.
With the Buffalo, Rochester & Pittsburgh
taking freely from the Reynoldsville-Punxsu-
tawney district and Canada taking consider¬
able coal for steel and farmer requirements,
the prices on this commodity have stiffened
and are holding firm. The price list quoted is:
Slack . 85c and up
Run of mine . $1.00@1.25
.Smithing . 1.25
Screened . $1.30 and up
Anthracite Situation.
How great a shortage will the official fig¬
ures of the Bureau of Anthracite Statistics
show? That is the question that is agitating
quite a few of the independents at the present
time. From a source that will bear quoting
it was learned that while the July figures
showed that the production was running about
two million tons less than last year, the actual
shortage is figured at twice this amount. The
reason — because there has been a considerable
reduction in the heavy stock of storage coal.
While there is bound to be an effect from this,
weather conditions aiding, yet there has been
no change from circular prices for September,
which are substantially those of last April be¬
fore the summer discounts were allowed. Fol¬
lowing is the lineup of prices shown on the
Reading circular:
Locust
Mountain Lorberry
Mahanoy and and Lyk’s
and Schuylkill Schuylkill Valley
Shenan- White Red Red
Sizes — doah. Ash. Shamokin. Ash. Ash.
Lump . $3.50 $3.50 .... .... ....
Steamboat . 3.50 3.50 .... .... ....
Broken . 3.50 3.50 _ $3.75 $4.10
Egg . 3.75 3.76 $3.75 4.00 4.35
Stove . 4.00 4.00 4.00 4.25 4.60
Chestnut . 4.15 4.15 4.15 4.25 4.60
Pea . 2.50 2.50 2.50 2.60 2.75
Buckwheat .... 1.50 1.50 1.50 1.60 2.35
Locally there has been little change in the
price on sizes as is governed by conditions.
Pea coal has shown a little betterment in tone
and is still to be bought from $2 to $2.25.
Chestnut has not revived to any great extent
and the larger sizes are still the leaders on the
market. Quite a number of the retailers are
holding off from making any great amount
of purchases until the court hears the case of
the railways in appeal against the orders of
the- Public Service Commission of the state
demanding a reduction in tariffs to this city.
The case has been set for September fifteenth
at Harrisburg.
Buying from New England has been a little
heavier during the week and the flurry of
cool weather along the east coast evidently has
turned the mind of the householder coal-bin-
ward. This has relieved to an extent the pres¬
sure on the storage yards and piers.
Philadelphia Trade Notes.
Charles S. Ling, of the Sunnyside Coal Com¬
pany of Johnstown, Pa., was in town the early
part of the week.
George Paul, vice-president of the Common¬
wealth Fuel Company of Pittsburgh, was
among the visitors noted this week.
Richard Gabelle, in charge of the bitumi¬
nous department for Thorne, Neale & Co.,
was in New York on Tuesday.
J. W. Gallaway, president of the Maryland
Coal Company of New York City, was in Phil¬
adelphia early in the week on business bent.
T. W. Arnett, general manager of the Antler
Coal Company at Fairmont, W. Va., took a
look at seaboard conditions early in the week
while on a trade visit here.
Joseph P. Reilly of the Reilly Coal Company
and the Duncan-Spangler Coal Company, who
has spent a vacation in a visit to the Panama-
Pacific Exposition, returned last Friday.
Arthur Kuppinger, sales manager for the
Valley Smokeless Coal Company, was up the
state on business during the fore part of the
week.
Arnold Gerstelle, head of the sales depart¬
ment of Percy Heilner & Son, has been on
a western tour for ten days and will not re¬
turn until the latter part of the week.
J. B. Van Dusen of Van Dusen Brothers is
on a trip to Ithaca, Buffalo and Toronto, Can.,
and while it is more on pleasure he will also
make a survey as to business west.
C. H. Tudworth of H. M. Hartwell & Sons,
of Boston, finished a trip through the regions
with a visit to this city. He was in Scranton,
Wilkes-Barre and Hazelton during the past
week.
Harry K. Stauffer of the B. Nicoll & Co.
forces here was a visitor to headquarters in
New York this week. A. A. S. McQueen,
manager of the Pittsburgh office of that com¬
pany, visited with the local force late last
week.
W. L. Scott, secretary of the Commercial
Coal Mining Company, and N. L. Haldt of the
same concern leave the end of this week for
a fishing trip to Fortesque, N. J., where coal
men have angled for the big ones that got
away. Scott savs they are going to “catch
’em all.”
By October 1st another 9,000-ton collier
for trans-Atlantic coal purposes will be in
shape. The sister ship of the Franklin, the
Plymouth, is to be launched at the yards of
the New York Shipbuilding Company on Sep¬
tember 9th. A third ship of the same style
and type will be laid and work commenced
early next year on it.
Golf enthusiasts of the trade were particu¬
larly interested in the amateur tournament in
Detroit this week, because of the entry of
Howard Perrin, sales manager for Philadel¬
phia and vicinity for the Susquehanna Coal
Company. Any number of his friends were
“pulling for him” to run up a high score. They
hope that he will have better success with the
redoubtables from New York should he enter
the tournament that the golfers from that city
are planning over a New Jersey links.
For over ten days, the Pennsylvania rail¬
road has allotted their cars to operators on a
distribution basis in the various soft coal dis¬
tricts of the central part of the state. This
usage has not been strictly lived up to for a
couple of years and operators who have been
m the city during the past week declare that
cars were never tighter than at the present
time. While there is a disposition on the part
of the buyer to discount the talk of labor
shortage, one Clearfield operator declares that
men are as scarce as “hen’s teeth.” “And they
are some scarce,” he added.
Buffalo Trade.
Buffalo, N. Y., September 2. — {Special Corre¬
spondence.') — Anthracite shipments by lake for
August amounted to 509,935 tons, a trifle larger
quaiitffy than the same month last year, which
was 508,620 tons. The shipments to September
1st this year were 2,379,325 tons, against 2,728,-
355 in the same period of last year. The move-
ment just now is light, but it is expected that
It will increase as the season progresses. The fall
will probably see a rush, in view of the labor
settlement of next spring. Some trouble is likely
to occur at that time in getting vessels to carry
small cargoes, as quite a few of such craft have
been removed from the lakes to engage in ocean
trade.
For the past week the anthracite shipments
were only 92,037 tons, or considerably below re¬
cent averages. The largest quantity, or 43,400
tons, went to Duluth-Superior, with 28,800 for
Milwaukee, 14,200 for Chicago, 5,337 for Mar¬
quette, 5,200 for Waukegan, 3,000 for Ashland
and 1,900 for Fort William.
Anthracite demand has shown a little increase
during the past couple of weeks, though it is not
at all brisk. Before the month is out it is ex¬
pected that dealers will begin to show a fair
amount of interest in new purchases in prepara¬
tion for cold weather. Shipments are not com¬
ing through from the mines quite as well as
desired, owing to the fact that operations have
been on a lighter scale lately.
In the bituminous trade a scarcity of cars is
beginning to be noted for the first time in a
long while. The small gondola class is hard to
get and many such cars are now wanted. Mines
are finding that the railroads are no longer able
to deliver all the cars needed, but are placing
them on a pro rata basis. As yet there is no
great shortage, but with operations getting to
work on a more extended basis in the different
districts, and with more cars needed than for¬
merly in other lines, a gradual tightening of car
supply is likely.
The contract prices on bituminous coal are a
little firmer than a few weeks ago, but few con¬
tracts are being taken. Operators are not will¬
ing to take chances for a long period at recent
figures, and consumers are slow to convince that
prices are to go higher. Yet the evidence seems
plain that the period of depression is getting over
with and that this fall will see a fair increase
in volume of business. Steel plants are busy and
other manufactories are also getting more orders
than a few weeks ago.
Believing that the present rates for com¬
pensation are too high, the members of the
New York Boat Owners’ Association have
decided to start a mutual insurance company.
This association represents about 130 owners
of boats that trade in and around New York,
comprising the principal owners of tug-boats
and barges that are used in the coal trade.
200
THE BLACK DIAMOND
[September 4
New England Trade
Boston, September 2. — {Special Correspond¬
ence.) — The closing days of August were quiet
ones among the local wholesale anthracite and
bituminous houses. In anthracite, for instance,
a majority of the retail dealers were well sup¬
plied or had enough stock on hand to carry them
along for a month or two. For that reason com¬
paratively few took advantage of the ten-cents-a-
ton reduction. Generally speaking, the retail
trade has been backward this summer, and it will
be another month at least before dealers will
have to come into the market for supplies. Nat¬
urally with his trade dull, the retailer has not
felt like tying up a lot of money in coal until
he was actually obliged to. Then too, certain of
the retailers have felt that possibly tbe recent
decision handed down by the Interstate Commerce
Commission in the freight rate case, may possibly
have some bearing on prices before December
II 1st.
Very little, if any, August business was car¬
ried over into this month by the wholesalers,
and they already are making strenuous efforts to
get new orders on books. Independent shippers
are offering coal at concessions for all-rail points,
which, of course, makes the task of the dealer
handling big company anthracite more difficult.
Amounts offered at concessions are small in most
cases. The new prices bring stove and egg along
side Boston Harbor up to $5.85 per ton, nut is
$fi.l(), and pea unebanged at $4.05. At Mystic
Wharf stove and egg are $6.20 per ton on cars,
screened, and nut $6.45. The prohibiting of coal
exports by Great Britain bas brought in more
inquiries from provinces points, but actual^ book¬
ings have not increased noticeably. There is little
doubt but that New England would have done a
very large provinces trade this year had not
freight rates been so high.
With all the lack of Imsiness local dealers are
by no means pessimistic. Some of them are not
only predicting a rushing fall and winter, but be¬
lieve some prepared sizes will sell at a premium.
Stocks at tidewater shipping and at stocking
points are relatively small and will remain so for
some weeks, as all of the mines are materially
curtailing their outputs. About the only buck¬
wheats moving are those that were sold in the
early part of the season. One of the oldest
bituminous dealers says that he cannot remem¬
ber a year when consumers in general have been
supplied with so much water power as they have
in 1915. The present condition of the local mar¬
ket seems to bear out his statement. At Mystic
Wharf there is no open spot market for New
River and Pocahontas as some weeks ago the
rank and file of dealers found it unprofitable to
ship to that point. Plenty of good coal has been
offered there at $3.60 per ton, as compared with
$3.85 a year ago. Shippers of Georges Creek
quote the Mystic Wharf market as nominal at
$3.90 per ton on cars, and claim they have no
desire to compete for business so long as price
cutting prevails on southern coals.
Some bituminous is, of course, selling every
day, but it is mostly in small lots, which, as one
dealer says, “goes to the four corners of New
England.” The Boston & Maine has done noth¬
ing as yet toward contracting for fresh sup¬
plies, but probably will soon. The New Haven
and Boston & Albany have, it is understood, a
large supply of coal on hand, but may take their
cue from some of the other large railroads of
the country and stock up more in anticipation of
possible labor troubles at the mines later on.
Stocks of New River and Pocahontas at and
running to Hampton Roads ports are reported
as smaller than they have been before in many
months, and if this report is true, the New Eng¬
land market is bound to receive some benefit
from conditions there. Smaller stocks should
.stop the price cutting in the f. o. b. Hampton
Roads market. Pennsylvania bituminous is still
reported as weak, but the official market price
range is unchanged at ninety cents to $1.50 per
ton on cars at the mines.
The marine freight rate market is unchanged.
For space from Hampton Roads ports to Boston
range from seventy-five to eighty cents, while
from Baltimore to Boston they are from seven
to ten cents a ton more. From New York to
Boston rates are unchanged at fifty to fifty-five
cents.
Massachusetts Gas Companies.
The combined net earnings available for divi¬
dends of the subsidiary companies of tbe Massa¬
chusetts Gas Companies for July were $200,011,
or $12,905 more than those for the corresponding
month last year, and $30,642 larger than those
for July, 1913. I'ollowing are the July earnings
of the coal department with comparisons :
1915 1914 1913
New England Gas . $37,692 $54,210 $ 54,347
New England Coal . 55,409 26,432 40,096
Federal Coal . 2,642 7,834 2,935
Tow Boat . 164 3,876 3,514
Total . $95,908 $92,353 $100,892
The output of the Island Creek Coal Com¬
pany for August was 220,000 tons, as compared
with 178,000 tons for July.
Baltimore Trade.
Baltimore, September 2. — {Special Corre¬
spondence.) — While there was no upward move
in prices, the soft coal market may be said to
have improved during the week. This was due
to an increasing line of inquiries, and the ex¬
pectation of a brisk fall seems about to be real¬
ized. That prices have not stiffened materially
is undoubtedly due to the fact that demand was
so far below production for many weeks that
the first increases in call for coal have to be
absorbed by surplusage before there is a real
tightening of the market.
From isolated sections the past week came
reports of car shortage. Relief came to some
sections that had been troubled more or less the
week before, but then new lines of trouble devel¬
oped at other points. The car problem is likely
to be one of the biggest ones of the coming fall
and early winter. _ _ .
Immense quantities of coal are again moving
over the piers here on export business, and there
is also an increase in evidence in the movement
at tide for coastwise account. The past week saw
considerable coal shipped to New England and
some to the south also. With the southern hur¬
ricane season due there may be some little in¬
clination to hold off until September has been
rounded out.
Export business took another upward turn the
past week. While the August record will prob¬
ably not reach that of June or July, it will still
be quite heavy. For the week ending August
28th a total of 66,670 tons was loaded for foreign
ports here. Increasing bunker call is also cutting
a large figure in the local trade.
Prices to the trade at mines may be quoted as
- F.O.B.
Baltimore.
$2.28@2.33
2.18@2.23
1.98@2.03
2.43@2.53
2.28@2.33
1.98@2.03
1.98@2.03
2.48@2.53
2.78(®2.83
2.03@2.13
Among the anthracite dealers here there is a
more optimistic tone. With the advent of Sep¬
tember, and cool weather, there has developed the
opening line of inquiry for the regular fall trade.
That this business will be up to normal or greater
than normal is confidently predicted. Even with
steaming coals, which have been flat, imprOTed
business conditions are likely to tighten that field
Munitions orders here are playing a bigger and
bigger part in the local industrial field, and con¬
sequently with the coal trade. More than $30,-
000,000 of contracts have already been placed here
with a dozen or so firms, and contracts for twice
that amount are pending.
Fairmont—
Three-quarter .
Run of mine .
F. 0. B.
Mines.
. $0.85@ .90
. 75@ .80
. 60@ .65
Somerset —
. 1.25@1.35
Good .
W. M. R. R.—
. 1.10@1.15
. 80@ .85
B. & 0.—
. 80@ .85
P. R. R.—
Best South Fork .
Miller vein .
Ordinary .
. 1.30@1.35
. 1.10@1.15
. 85@ .95
Birmingham Trade.
Birmingham, Ala., September 2.— (Special
Correspondence.) — The coal trade is without
doubt better than it was this time last year.
While this is true, not all of operating mines
are working to full capacity. Domestic coal
mines have shown a considerable improve¬
ment in trade in tbe past few days and some
are running to capacity. There is some buy¬
ing by the yard men and many consumers
who buy in carloads are placing orders for
early delivery.
It is probable that the total output has
reached sixty-five per cent and, while a few
places are running full time and full capacity,
many others are not doing over forty per cent
of the business which could be done. The
Eureka Company, which sells the Cahaba do¬
mestic coal, is getting out about 800 tons per
day, full tonnage. The Empire Company is
getting out its full tonnage of 1,200 tons per
day; a few others are doing the same, but
with 203 mines ready for operation a large
volume of business must be had to keep all
going even to a forty per cent tonnage.
Steam coal trade is only fair; still some in¬
crease is beginning to show up. Most coking
coal mines are getting out satisfactory output
and most of this is used in the district.
Most of the high grade domestic coals have
advanced from fifteen to twenty-five cents per
ton for September prices. Prices on steam,
coking and blacksmith coal show very little
change, notwithstanding the fact that as a
whole neither the sales nor the output of any
coals is entirely satisfactory.
Many improvements in mining sections still
continue to be projected. The river trade out¬
look seems to grow brighter and many indica¬
tions are coming into view which show that
that route will soon be very popular.
The following prices prevail for September:
F. p. B. F. O. B.
Bibb County Domestic Coal — Mines. Birmingham.
Caliaba fancy lump . $2.75 $3.05
Cahaba No. 2 lump . 2.50 2.80
Jefferson County —
Fancy steam Pratt . 1.75 2.00
Run of mine Pratt . 1.20@1.25 1.45@1.60
Black Creek —
Fancy steam lump . 1.75 2.05
Washed nut . 1.75 2.05
Washed steam . 1.35@1.40 Frt. rate 80c
Mine run . 1.35@1.40 Frt. rate 30c
Jefferson Seam Steam Coal — ■
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic —
Carbon Hill lump . 1.60 2.00
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Shelby County —
Montevallo domestic prices ranging from $2.75 to $3.00.
Blacksmith coal, washed and screened, per ton, $2 to
$2.25 at mines, with different rates to various points.
Denver Trade.
Denver, September 2. — {Special Correspond¬
ence.)- — Contrary to general expectations, there
was quite a scramble to place storage orders last
week before the expiration of the season rates
which expired on Tuesday. Most of these orders
came from western Kansas and Nebraska points.
However, nobody was swamped and every angle
of the business points to continued dullness.
The present extremely warm weather throughout
this section has also had a very depressing in¬
fluence.
Lignite production is almost at a standstill this
week, but the bituminous output compares very
favorably with that of the preceding week.
Canon City district is showing up much better
in tonnage, and it is reported that a few addi¬
tional mines will be opened with the advent of
cold weather. Trinidad is the banner producer
for the week, those mines being much taxed by
steam and steel requirements and storage fillings.
Routt county production will run about sixty-five
per cent of normal.
Lignite slack is in light supply, but bituminous
is plentiful. Prices are irregular on a very slow
demand.
Lignite coal prices f . o. b. mines are as follows :
For Denver delivery — Lump, $2.35 to $2.65; mine
run, $1.50 to $1.65; slack, $1.05 to $1.25. For
country delivery — Lump, $2.50; mine run, $1.55 to
$1.65; slack, $1.05.
Norfolk & Western Shipments.
In July, tbe Norfolk & Western made a
new record coal tonnage, handling in this
month 173,980 tons more than for the best
previous month in its history. June, showing
shipments of 2,680,465 tons, had been the best
previous month as regards coal tonnage.
The following comparison of the shipments
with the corresponding months in 1914 and
1915 shows the rate of increase in the road’s
tonnage :
Month — 1914. 1915.
January . 1,965,814 1,886,938
February . 1,666,475 1,621,021
March . 2,112,118 1,904,752
April . 2,117,286 2,200,551
May . 2,338,672 2,434,614
Tune . 2,315,956 2,680,465
July . 2,503,062 2,854,445
Total
15,019,333 15,582,786
The comptroller’s report shows the ship¬
ments for July by the field as follows:
Pocahontas field . 1,648,551
Tug River district . 361,454
Thacker district . 265,743
Kenova district . 80,009
Clinch Valley district . 146,911
Other N. & W. territory . 2,651
Total N. & W. fields . 2,505,319
Williamson and Pond Creek R. R. Co . 86,949
All other railroads . 262,177
Grand total
2,854,445
Phe Black Diamond
Vol. 55. No. 11 g«
SEPTEMBER 11, 1915 $3.00 Per Year
Vital Facts on Coal Storage in Three Sections.*
On account of depressed business conditions
during the past year, the necessity for coal stor¬
age was not felt, due to the fact that the con¬
sumption of coal during the fall and winter
months by railroads and industrial plants was
conservatively thirty per cent below normal. This
together with the reduction in all classes of
traffic left the railroads with a surplus of cars
and power during the entire year.
This state of affairs, however, did serve to
magnify some of the unsatisfactory and un¬
economical conditions, existing within and in
connection with bituminous coal industry.
1. It has become doubly apparent to all par¬
ties interested that there are appro.ximately fifty
per cent more coal mining operations in this
country than are needed to produce the amount
of coal consumed.
(a) That this surplus of mines represents an
investment of approximately $450,000,000. If
twenty-five per cent of this had been invested in
storage facilities instead of mines the needs of
the country could have been fully and promptly
supplied, and the bituminous coal industry of
today would be on a solid basis financially in¬
stead of the jeopardized state, which, we are told
by the operators, actually exists, due to ruinous
competition and high cost of production brought
about by short runnin.g time.
(b) In order to meet the spasmodic strong
demands for coal in the fall and winter (further
intensified by the biennial mine suspensions), the
railroads have been gradually creating a large
surplus of coal cars. The average surplus for
period May 15 to July 15, 1914, was 95,564 cars.
This represents an investment of approximately
$105,120,400. Fifty per cent of this amount
judiciously expended in storage facilities would
have accomplished as much in taking care of the
coal traffic of the country, and the life of such
storage facilities would have been double the
life of the cars, with a very much less mainte¬
nance cost.
Eastern Group.
Ohio, Pennsylvania and IVest Virginia: There
is a difference of opinion as to whether the stor¬
age of coal is desirable, some advocating this
practice, while others feel that the storage of
coal is not practicable and should be avoided.
Those favoring the storage of coal differ as to
the best season for storage. It makes consid¬
erable difference whether the coal is to be stored
at or in the vicinity of the mines or close to
the point where it will ultimately be used. If
coal is to move from storage near the mines by
water, it should be stored during the fall and
winter months and moved during the spring
and summer. If coal is to be moved by rail, it
is the consensus of opinion that it should be
stored near the mines during late fall when traf¬
fic is heavy and winter when transportation costs
are high, and moved to point of consumption
during the spring and summer months.
The consensus of opinion in regard to the
coals named in the region under consideration,
which may be screened without excessive break¬
age, seems to be that the coal best adapted for
storage is the three-fourths inch to the one-and-
one-fourth inch lump. In the case of very friable
coals such a separation of sizes is not practi¬
cable, for which reason they should be stored as
run-of-mine and the stora.ge piles so made as
to minimize the danger attendant upon storing
the coal of mixed sizes.
What Storage Costs
While in the district in question attempts have
been made to store coal, there was found to be
considerable variation in figures representing cost
of storage. It is felt, however, under conditions
which are reasonably favorable the cost of stor¬
age should not exceed thirty-five cents a ton,
and under quite favorable conditions, the cost
should be less. In addition to the cost of the
second handling, the interest on the amount of
’Part of a report by the standing committee of the
International Railway Fuel Association.
Experts Say That the Loss of Heat Is
Small and Danger Not Great — Cost
Varies With the Methods Used.
coal stored must be considered ; also the cost
of freight charges, if any, to point where coal
is stored, and the interest on such charges,' like¬
wise interest and depreciation on plant and facili¬
ties used for storage of coal.
The Gulf Smokeless Coal Company has a
playt in service at Sewall’s Point, Virginia, which
they feel is quite econoriiical. There is also an¬
other one on the C. C. & O. Railroad, operated
by the Clinchfield Coal Corporation, and a third
on the Ohio river, operated by the Island Creek
Coal Sales Company. The Westmoreland Coal
Company makes use of the locomotive crane for
storage purposes and feels that under normal
conditions the cost of re-handling coal with de¬
vice of this character is not over six cents per
ton.
Heat Value Loss.
The information as regards service tests made
on locomotives or stationary boiler plants with
Stored coal, is meager and we obtained no ac¬
An Object Lesson.
As this issue goes to press a car
and locomotive shortage is becoming
apparent.
In a short while a coal shortage
must come as a natural consequence.
To avoid such things the Inter¬
national Railway Fuel Association
discussed coal storage by the rail¬
ways. It sought also to give more
even employment to the railway
cars.
So long as the railways were con¬
fronted by a theory only, they did
not act. Faced now by a fact, they
may adopt a new and helpful pro¬
gram.
curate data on this subject. Such information
as was obtainable indicates that the loss in heat¬
ing value of coal is very slight. One large coal
company advises that on a numlber of their con¬
tracts they have applied both freshly mined and
storage coal as their conditions made it neces¬
sary, and that they have not been in receipt of
any reports from their customers which would
indicate the results were in any way different.
This despite the fact the coal frequently re¬
mained in storage from six to twelve months.
Dr. H. C. Porter of the Bureau of Mines, De¬
partment of Interior, advises as follows with
reference to New River and Pittsburgh gas coal:
New River Coal: “1. Screenings (through
one-half-inch) exposed to the weather lost in one
year 0.5 per cent in ash-and-moisture-free calor¬
ies, at Portsmouth, New Hampshire, and 0.7 per
cent at Norfolk, Virginia, and Key West, Flor¬
ida. In two years the loss had reached 0.8 per
cent at Portsmouth, N. H., and 1.2 per cent and
l.S per cent respectively, at Norfolk and at Key
West. In three years the loss had apparently
reached its maximum at about two to 2.5 per
cent, there being either no loss at all or a very
slow deterioration during the third, fourth and
fifth years.
“2. Run-of-mine coal weathered in the open
air lost in heat value more slowly than the
screenings and had reached about 1.5 per cent
in five years. In two years there was only a very
slight slacking of lumps, but this increased to
some extent during the followin.g three years.
“3. Submerged under salt water and fresh
water, there was practically no loss of heat value
during the first two years. After this period
there appeared to be a slight loss (considerably
less than one per cent) in the samples submerged
in sea water.”
Pittsburgh Gas Coal: “Samples of this coal,
about four tons each, run-of-mine, stored in
open bins, exposed to the weather at Ann Arbor,
Mich., suffered practically no loss in heat value
in one year. After three years and four years
a slight loss had occurred, scarcely over 0.5
per cent. The same coal submerged under fresh
water during three and one-half years suffered
no loss whatever.”
And gives the following additional informa¬
tion with reference to spontaneous combustion :
“The conclusions noted in Technical Paper 16
have been in the main corroborated by the ex¬
periments made subsequently. It appears that
the penetration of air to the interior of a large
pile is one of the most important considerations.
If coal could be screened before storing and
the lump piled separately from the screenings,
or if the screenings were consumed at once
without storing, there would be little, if any,
danger of spontaneous heating. Air does not
penetrate easily into three-fourths inch screen¬
ings containing a variety of sizes under three-
fourths inch. The heating will, therefore, not
probably go beyond a certain maximum in the
interior and will not reach the danger point.
“In storing run-of-mine coal, it is possible gen¬
erally to avoid spontaneous combustion if the
piles are made in the form of long, narrow
ridges separated by open spaces which allow air
cooling. It is important also in piling run-of-
mine to move the handling machine so that there
is as little segregation of lumps and fines as
possible.
“Rough measurements of temperature at dif¬
ferent points in the interior of a lar.ge pile should
be made frequently during a storage of over
two months so as to allow any rise in tempera¬
ture which may occur and to rehandle those sec¬
tions of the pile which reach a temperature of
over 150 degrees F. These temperature meas¬
urements can be made easily by simply driving
down one-eighth-inch iron pipes or rods, and
after leaving them a sufficient time withdrawing
and_ feeling of them with the hand ; 150 degrees
F. is about the limit of temperature that one
can stand with the bare hand.
“There is some variation among bituminous
coals in their liability to spontaneous combus¬
tion, but not very much among those kinds of
coal in the Appalachian region. Small variations
in sulphur content are of no consequence in this
connection. The sulphur, no doubt, acts as a
heating agent and contributes to the danger of
spontaneous heating, but its importance has been
over-rated. The physical condition of the pyrites,
whether finely divided and distributed through
the coal or in maSsive pieces, is the most im¬
portant factor in connection with sulphur,
“The relative friability of coals or their ten¬
dency to break up into dust and fines by hand¬
ling is an important factor affecting spontaneous
combustion. Breakage tests made at the Bureau
on fourteen different kinds of coal showed a
large variation in this respect. The semi-bitumi¬
nous low-volatile coals appear to give about twice
the amount of material passing a one-half screen
as did the coals of the Pittsburgh type created
similarly.”
Consolidation Tests.
The Consolidation Coal Company reports as
follows with reference to certain tests made by
them :
“In 1912-1913, we made weathering and labora¬
tory tests of a two-hundred-pound sample of
coal, closely similar in all respects to coal from
Pittsburgh seam in northern West Virginia and
southwestern Pennsylvania. Coal sampled and
the analysis made: (1) At start of test: (2),
after six months’ exposure of sample; and (3),
after eighteen months’ exposure. Closely rep-
202
THE BLACK DIAMOND
[September 11
resentative sampling was impossible, due to nat¬
ure of test and as a direct result some rather
wide variations in some features of the analytical
results were found. However, the general indi¬
cation of all laboratory results was that the
chemical quality of the coal had undergone prac¬
tically no change and that loss at calorific value
was under one-half of one per cent during the
eighteen months of exposure.”
Westmoreland Tests.
The Westmoreland Coal Company advise :
“This company has made some elaborate tests
of the storage of coal and weatheriag, and the
residts have shown that there is a very unex¬
pectedly slight deterioration ; that is to say, at
least, in our coal. The coal pile oxidizes rap¬
idly on the outside and puts on, so to speak,
an overcoat of slack or fine coal, which seems
to protect the interior of the pile and this process
of greater or less oxidization and slacking goes
on to a depth of, say twelve inches or thereabouts
and underneath that we have generally found all
its original value. Indeed, in some tests we have
found that there has been no deterioration, even
in the much more delicate tests of gassification
and production of illuminatin.g gas. We have
had some coal exposed in piles, and some under
cover, for some ten or fifteen years, and the
general reply to your inquiry would be that there
is no material depreciation : at least in our coal
— which is the only coal of which I can speak
intelligently.”
The Island Creek Coal Sales Company state
as follows ;
“We have found our storage arrangement very
satisfactory, both for the reason that the coal
can be stored without serious deterioration and
also that it is of mutual benefit to the railroad
company and ourselves inasmuch as coal is usu¬
ally shipped to storage during a time when cars
are plentiful and when it is required during
time of shortage, it is much nearer the consum¬
ing point.”
Southeastern Coast Group.
1. The consensus of opinion of both railroad
executives and of at least one coal operator in
that district, is that it is both desirable and
feasible to store coal.
(a) Coal should be stored during the summer
and early fall months, at a time when the demand
for coal is small. This insures a sufficient supply
of cars and locomotives which, under normal
conditions, would be idle. It also insures steadier
operation of the mines during the entire year and
gives both the railroad and coal operator the
opportunity to handle the heavy winter demand
to the satisfaction of all concerned.
(b) From the railroad’s standpoint, it is
agreed that lump coal of a firm quality, in or¬
der to resist powdering, is the best. The Central
of Georgia Railway has been very successful
in storing slack with a large per cent of nut.
From the operator’s viewpoint, run-of-mine
should be stored, as it leaves nothing on their
hands.
2. All the roads in this district have stora.ge
centers and store coal regularly each summer.
One coal operator has a storage plant in North
Carolina with a capacity of 1.50,000 tons.
(a) The cost of operating this storage plant
for two different periods is shown below :
UNLOADING COST, JUNE 24 TO OCTOBER 4, 1912.
NO. OF TONS, 125,696.
Cost
per Ton.
Pay roll . $2,148.74 $0.0172
Repairs to plant, supplies, etc . 727.44 .00.50
Fuel for crane . 594.50 .0047
Total . $3,116.38 $0.0248
Depreciation at 10 per cent per annum
on $71,000 for si.x months . 3,550.00 .0232
Interest at 5 per cent for six months. . 1,755.00 .0141
Total . $5,325.00 $0.0671
8,441.38
RELOADING COST, OCTOBER 8 TO JANUARY 31,
1913.
NO. OF TONS, 129,778.
Cost
per Ton.
Pay roll . $1,797.62 $0.0138
Reairs to plant, supplies, etc . 727.44 .0056
Fuel for crane . 040.70 .0050
Total . $3,171.70 $0.0244
Depreciation at 10 per cent per annum,
on $71,000 for six months . 3,550.00 .0274
Interest at 5 per cent per annum on
$71,000 for six months . 1.775.00 .0137
Total . $5,325.00 $0.0055
$8,496.76
Total average cost for dumping and reloading, 13.26
cents per ton.
UNLOADING CflST, FROM MAY 1 TO AUGUST 31,
1914, INCLUSIVE, 2,703 CARS.
NO. OF TONS, 131,949.
Cost in
Cents
per Ton.
Pay rolls . $1,653.74 $0.0125
Repairs to plant, supplies, etc . 576.72 .0044
Fuel for crane, estimated at two and
one-half tons per day . 600.00 .0045
Total . $2,829.46 $0.0214
Depreciation at 10 per cent per annum
on $71,000 for six months . 3,550.00 .0269
Interest at 5 per cent per annum on
$71,000 for six months . 1,775.00 .0135
Total . $8,154.46 $0.0618
(b) One road in this c[istrict has a Dodge
plant, vvhich consists of a 20.x40-foot pit, 15 feet
deep, into which the coal is dumped from hopper
bottom cars. Encircling this pit is a track for
a traveling crane which takes the coal from
the pit and stores it in a circular pile around
the pit. The same crane is used for coaling
engines by placing the coal in an overhead bin
from which it is loaded on tenders. This de¬
vice is both successful and economical.
3. No tests made.
4. Nothing to report other than shown on
pages 138 of Proceedings of our Sixth .Annual
Convention.
roads (using conservatively ninety-five per cent
of the railroad fuel coal supplied from this dis¬
trict) show:
Tons.
Apnl-July . 8,118,400
October-January . 15,075,650
Increase in fall and winter months, 6,957,250 tons, or
8.5.7 per cent.
(b) Lump and egg coal should be stored at
destination by railroads, industrial plants and
domestic users during months April to August.
Screenings should be stored at mines by cOal
operators during period September to January.
2. Practically nothing has been done toward
the stora.ge of coal mined in this district, with
the exception of a few manufacturing and public
utility concerns.
Nothing has been done by coal operators in
the direction of storage at the mines, or by the
railroads at coaling stations. The only storage
undertaken by railroads has been previous to
strikes or suspension of work at mines.
(a) Figures submitted by one railroad cover¬
ing coal stored in fall and winter 1913-14 and
recovered in spring 1914 show:
Tons.
Unloaded . 54,227
Reloaded . 53,763
Loss . 464
Total Cost Labor Aver. Cost
and Supplies. per Ton.
$6,507.24 $0.12
3,006.36 .055
$9,613.60 $0,176
North Central Group.
{Indiana, Illinois and Iowa)
1. The coal fields of Illinois, Indiana and
Iowa are entirely dependent upon immediate
consumption of their output for their market.
Coal is mined as it is consumed, with only a
small variation in production as compared with
consumption. The absence of storage facilities
causes an overproduction whenever the demand
is below the capacity of the mines. Likewise is
there a great shortage of coal if the output of
the mines is interfered with by natural condi¬
tions, such as severe weather causing lack of*
transportation facilities, or labor trouble. With
the output of the mines greatly in excess of the
market requirements during the major portion
of the year, there is a surplus of coal. Mines
are more economically operated if the operations
are conducted on a constant basis and if the
development work is carried on in pace with the
coal requirements. The storage of coal is in¬
tended to act as a balance wheel between these
two extremes. In the summer months the coal
.going into storage would enaltle a reasonably
constant operation of the mines and would be
a benefit to the mine operators and the carriers ;
and in the winter months the accumulated stor¬
age coal would be of l)enefit to the coal con¬
sumer by eliminating undue advances in the
price due to any shortages in the supply.
The territory supplied by the mines of Illinois,
Indiana and Iowa is gradually developing in¬
dustrial plants which require ever-increasing
quantities of screenings for their power plants.
The increased production of lump coal in the
winter months creates a surplus of screenings,
which are sold as low as ten cents a ton at the
mines during the period of demand for domestic
coals. In the summer months when the lump
coal production has reached its minimum, the
same screenings command a price of $1.00 at
the mines.
To equalize these two extremes would be a
well-nigh ideal condition, but one which has as
yet not been reached. The unfavorable financial
situation which has existed during the last two
years has resulted in no serious attempts to
solve the coal storage problem because of the
inability of either producers or consumers to
put such methods into effect. As one member
of tiffs Committee aptly states, “The prevailing
conditions during the last two or three years
have been such that railroad companies are not
interested in any subject requiring any expendi¬
ture, even though it would mean a vast savin.g
in the long run.”
There is no question but that the storage of
coal is feasible, when conditions make it desir-
Locomotive crane and grab buckets used for
handling both ways.
Higher cost of unloading due to charging cost
of temporary tracks to unloading expense.
Following are figures submitted by another
railroad covering coal stored in year 1910 :
Location of Pile — How Stored —
Tons unloaded .
Cost of Unloading, Total —
Labor charges .
C.*
132,314
B.t
31,576
Switching, etc .
Total .
Tons reloaded .
Cost of reloading, total .
Cost of Unloading, per Ton —
.$22,004.59
107,096
. 8,818.21
$4,620.16
31,576
2,516.95
LaDor charges . $ .150
Switching, etc . .016
Total . $ .166
Cost of reloading, per ton . .082
Cost of unloading and re¬
loading . $ .248
.125
.021
.146
.080
.220
*Semi-permanent trestle, drop bottom cars, clam shell
used to widen pile.
tDrop bottom cars and track jacked up.
Pile “C” was stored by running the cars on
what is termed a “semii-permanent structure,”
i. e., it is usable year after year, but is not as
well put up as though it were to be used for,
say, twenty years. The structure is still in
place and some of the coal is still on the ground.
There are apparently no figures available as
to the e.xact cost of this structure, and we are
unable to furnish any further details than are
shown in the above table.
In storing pile “C,” tracks were placed at
each side of the main pile and a clam shell
operating on these tracks took the coal from the
main pile after it had been dumped from the
cars and transferred it to an auxiliary pile paral¬
lel to the main pile and thus leaving the clam
shell operating on tracks between the main and
auxiliary piles. It is evident that this addi¬
tional handling ran up the cost considerabl.v,
and if interest and depreciation on investment
of trestle were included in above table it would
seemingly prove to be an uneconomical method.
Pile “B” is just the ordinary storage pile
where drop bottom cars are used and track
jacked upon the coal.
3. Tenable to obtain any data of road tests of
storage coal.
4. Following information furnished by one
railroad showing laboratory tests of samples
taken in October, 1911, from a storage pile con¬
taining 5,651 tons, the miost of which was stored
in the fall of 1907, the remainder in the pre¬
vious year. The average results of these analy¬
ses are shown in the table in comparison with
those of samples taken at the mine in July and
August, 1909, and during August, 1911.
able.
(a) Coal should be stored at ultimate destina¬
tion during months April to August to be of
greatest advantage to producer and carrier. In
Loss of
Moisture,
on Air
Drying,
Pet.
B. T. U.
Determinations
Average of surface samples . 6.9
Average of samples taken 18 inches below surface . 6.0
Average of samples taken 4 to 8 feet below surface . 4.3
Average of six days’ samples of engine lump, July and
August, 1909 .
Average of 6ve days’ samples of engine lump, August, 1911..
Proximate Analysis-
-X and Sulphur:
Volatile Fixed
A
Moisture.
Matter. Carbon.
Ash.
Sulphur.
B.T.U.
Pet.
Pet. Pet.
Pet.
Pet.
9.93
34.14 34.75
21.18
4.60
8953
10.93
36.18 34.06
18.83
4.08
9390
9.37
40.78 35.10
14.75
4.82
10296
8.08
37.66 37.01
17.25
10298
10.15
38.95 35.13
15.77
5.10
10705
support of this statement we have procured data
showing the relative consumption of the rail¬
roads, procuring their supply from this district
for periods April to July and October to Janu¬
ary respectively, and reports from twenty-four
Commenting on this the fuel engineer of this
road says :
“In analyzing the coal samples, part of the
moisture , was driven off by air drying at a
temperature of fifty to seventy degrees, after
No. 11]
THE BLACK DIAMOND
203
the samples had been ground, and you will note
that the loss by air drying was 1.6 per cent and
1.7 per cent higher in the case of the surface
samples and the samples taken eighteen inches
below the surface respectively, than it was in
the case of the samples taken four to eight feet
below the surface. This would indicate that
there was no considerable amount of moisture
present due to melted snow in any of the sam¬
ples.
“The average of samples taken four to eight
feet below the surface in comparison with those
taken at the mine during 1909 and 1911, shows
no loss of moisture or heat units. Providing
this coal was undergoing spontaneous combus¬
tion there would be a loss of heat units, loss
of fixed carbon, volatile matter and moisture
and an increase of ash, but apparently no spon¬
taneous combustion has taken place even in the
slightest degree.
“It will be noted that weathering has taken
place on the surface and some weathering 18
inches below the surface. It is probable, how¬
ever, that the effect of this weathering is negli¬
gible three to four feet below the surface.
"Although the major portion of this pile has
been on the ground for more than four years,
there is no necessity for loading it from the
standpoint of its condition and I am satisfied that
the greater part of this coal would be just as
good ten years from now as at the present date.
“In further explanation I will say that this
was Wyoming lump coal prepared over shaker
screens and finally over a revolving wire screen
having openings which average seventeen-sixty-
fourths inch square. Therefore, this is what
would be termed ‘lump coal,’ though, of course,
it is a very low grade of lump. In the prepara¬
tion of this lump they make approximately
ten per cent slack.
“No precautions were taken in storing this
coal and it was stored by dumping the cars and
then jacking up the track and again dumping
the cars. After the pile was completed the
track was taken up and the pile was not even
peaked on top as it should have been. There
was, therefore, a flat space about fifteen feet
wide, and the depth of this pile was about
eighteen or twenty feet.
“The coal from this mdne is crushed, picked,
crushed and screened, before it enters the rail¬
road cars,”
Various methods of storage of coal have been
considered and investigated. On account of the
high sulphur contents of coal, it would seem
that submerging coal under water offers the
best solution, the only handicap being the great
cost of providing facilities. The advantage of
this system is that in the event the coal is not
needed by reason of absence of interferences of
transportation or production, then it can be
continued in storage indefinitely, thus saving the
cost of unloading and reloading, the storage pile
acting chiefly as an insurance against a possible
shortage.
The committee recommends a further consid¬
eration of this important subject during the
ensuing year with the view of obtaining some
definite and concerted action on the part of
producers and carriers in the matter of working
out feasible plans for the storage of coal an¬
nually on an extensive basis.
Canada’s Financial Position.
An observer, who recently returned from the
northwest, made an inquiry into the financial
situation at the head of the lakes. He was par¬
ticular to ask the status of collections. He found
them fairly good as a whole.
This statement is modified in two particulars.
Some manufacturing districts have been running
on rather short time and consequently collections
have been slow. In one or two- places, serious
failures have involved producing companies in
difficulty and have thrown men out of employ¬
ment. This tends, in those places, to make col¬
lections slow.
The most serious situation is in western Can¬
ada, according to reports. That territory, it
seems, had a partial crop failure last year ; the
people were, in consequence, short of money.
That, however, does not explain all of the diffi¬
culty that Canada is enduring from a financial
point of view. It seems, from what we can
gather, that the Dominion is having to carry a
considerable part of England’s war burden. That
is, England has been buying rather heavily in
America both in foodstuff and munitions of war.
The resultant debt has to be satisfied.
This was offset, in the early stages, by credits
resting in England against the United States due
to absorption by America of securities held in
Europe. However, the credit in England has
been wiped out and now the obligation runs
heavily the other way. This can only be satis¬
fied by a shipment of gold direct to America.
The shipment of gold is, or has been, hazar¬
dous owing to the activity of the German fleet.
Besides, England has needed gold for home pur¬
poses and has not cared to deplete its supply by
shipping to the United States. At the same time,
it had to pay the United States in cash for what
it got. This led it to call upon Canada to de¬
plete, to a large extent, its gold supply to aid
the mother country.
The first movement was to return to Wash¬
ington from Ottawa the gold previously sent
there by this country. As a secondary means,
the gold reserves in Canada banks were called
A great many, perhaps a majority, of the coal
mines in the state of Illinois are depending upon
accounting methods that are inadequate — some
of them pathetically so. Considering the impor¬
tance of properly setting up accounts to ascer¬
tain costs, record transactions and display finan¬
cial position, it is apparent at once that the de¬
partment of accounts has not been given the care
it should receive.
It is true that some companies have come to
an appreciation of the vital Importance of cor¬
rect and thorough accounting, and have devel¬
oped well organized departments for this work.
On the other hand, inquiry reveals a surprising
number that have failed to provide for even such
elementary needs as a double entry set of books.
A reform is needed. With such reforms will
come not only a higher conception of the value of
sound and thorough methods but as well a new
view of the need that all account classifications
be laid out along lines of uniformity. No one
thing, perhaps, would help more to turn losses
into gains than for the operators to establish and
maintain a uniform system whereby account clas¬
sification and analysis may be made upon the same
basis throughout the state. If this can be accom¬
plished, more good will be derived from the at¬
tempts at cooperation between operators. They
will speak to each other in terms that will be un¬
derstood. "Cost of production’’ will no longer
be the vague, undefined thing it now is.
Nowadays, when one comments on the cost of
production, having in mind his own accustomed
manner of figuring it, his remarks are grossly
misunderstood because the men addressed each
have persisted in regarding “cost” as compiled on
a very different basis.
Mining conditions are such that accounting
methods could be standardized with comparative
ease. The wage scale contract, stipulating an
exact rate to be paid for each kind of labor, is
adopted throughout the state. No mine owner
may have an advantage over his neighbor in the
matter of labor cost; he must pay the same price
for each kind of work done. It does not follow,
however, that the average cost per ton for labor
will be equal at the several mines having the
same contract rates. An intelligent study of the
.grouping of items of cost, readjusting of arrange¬
ment, a competent analysis of expenditures for
labor, and very shortly a material saving is
effected. Slight as these savings may be, they
are legitimate and represent an elimination of un¬
necessary loss.
A far greater good may be done by getting
away from the haphazard ways of handling ex¬
penditures other than labor, grouping them and
givin.g emphasis to each in its proper time and
place. Most, if not all the companies insist on
receiving daily from the mines a report of oper¬
ations. And it would appear that studious care
had been exercised to avoid having any two re¬
ports in the same form. It may be that operators
do not wished to be charged with copying, one
from the other. Perchance the office force feels
it is up to them to “get something different.”
At any rate, with as many and as widely differ¬
ing groupings as are found ht these reports it is
obvious that all cannot be satisfactory, either in
technique or for practical service.
Any attempt to compare reports from different
mines would be entirely useless. Many of them
fail utterly to convey the information they are
designed to show.
The classifications used in periodical reports
and in the books of account are little, if any, bet¬
ter. Little wonder, then, that the “boss” refuses
to devote his valuable time to poring over the
into the Dominion treasury and that in turn has
found its way to Washington, in major part.
Now all of the available gold of the Dominion
is moving through Ottawa to Washington to sat¬
isfy the United States’ demand for cash for
munitions of war. As a natural consequence the
interior of Canada is rather bare of money and
this is giving Canada a more or less serious fi¬
nancial situation because its augments the pre¬
vious distress due to crop failure.
For these various reasons, collections from
Canadian buyers of coal are rather slow and may
be expected to continue so for some time to
come. As a matter of fact, Canada is passing
through a period of depression which is far
worse than that which has spread over the United
States.
figures presented to him. Unless there is a proper
and well-defined outline of accounts, accurately
charted, based on an intimate acquaintance with
and a positive knowledge of the right way to
handle items such as labor, supplies, replacements,
equipment, overhead, power, deferred charges,
interest, insurance, taxes, reserves and the many
other elements into which corporation activities
may be divided, no set of men are going to be
able to give a concise statement of the real finan¬
cial statement of their corporate body, or of its
earnings. And, it may be noted in passing, men
deceive themselves more than anyone else. Hence
the crying need for a uniform system of account¬
ing.
As a rule men whose best efforts are given to
the active management of mines are eagrossed
with that duty. They have enough to do. More¬
over, they have not the time, ability or inclina¬
tion to work out problems directly within the
scope of accountancy. Such matters belong in the
realm of the trained accountant, which class of
men have developed the science of accountancy
to the extent that the needs of the entire field
may be surveyed and a competent system so laid
out that the several companies, large or small,
may so set up their accounts as to give a clear
conception of the true situation without any ex¬
cess of labor.
May the time speedily come when the advan¬
tages of standardized systems will be seen and
grasped.
Coal Mining in Montana.
Montana mines produced 2,805,173 short tons
of coal in 1914, valued at $4,913,191. As corn-
pared with 1913, the production of coal in
Montana in 1914 showed a decrease, according
to the United States Geological Survey of 435,-
800 tons in quantity, and $740,348 in value.
The major part of this decrease occurred in
Carbon and Musselshell counties, whose coal
is used mainly by railroads, and in the Great
Falls field, in Cascade County, which supplies
a large quantity of coal to the copper smelters
of Anaconda and Great Falls. Other coal
fields, however, such as the Lewistown, in
Fergus county, which supplies the domestic
trade, showed a small increase such as nor¬
mally follows an increase in population.
There were no serious interruptions to min¬
ing operations in 1914, because of labor trou¬
bles, and there was no scarcity of labor. A
total of only 171 men were reported on strike,
for an average of 7 days each. The quantity
of machine-mined coal increased from 1,076,641
tons or 33.2 per cent of the total product, in
1913, to 1,213,051 tons, or 43 per cent of the
total, in 1914. The proportion of coal shot off
the solid decreased from 35 per cent (1,143,-
364 tons) in 1913, to 32 per cent (895,279 tons)
in 1914.
The number of men employed in the coal
mines of the state in 1914, was 3,350; and they
worked an average of 209 days, as against
3,630 men for an average of 228 days, in 1913.
The mine workers of Montana have a good
record for efficiency, the state in 1912 showing
the best average production per man per day
among all the coal-producing states. In 1914,
the average production per man for the year
was less than in 1913 (837 tons against 893
tons), but the average daily output by each
employe was 4 tons in 1914 as against 3.92
tons in 1913, and 4.03 tons in 1912. The fatality
record maintained by the Bureau of Mines
shows a decrease from 20 in 1913 to 8 in 1914.
Standardized Accounting for Illinois Mines.
By A. C. Smith.
[September 11
204
THE BLACK DIAMOND.
Things a Retailer Should Know of His Business
Carrier’s Responsibility.
Far. 2. Sec. (.4) — Responsiuility Defined:
( See Hutchinson on Carriers, Vol. 3, Sec. 651 and
1365). Responsibility of a carrier is that of an
ordinary transportation agent for liire, and if he
fails in the performance of this duty the carrier
becomes liable only for such damage as the
owner has suffered by this negligence. The
owner is still legally bound to receive the goods
when tendered at destination, although the carrier
may have delayed delivery for an unreasonable
length of time, or although the goods may be
short in weight or damaged. Unless the property
is wholly worthless, the owner or consignee can¬
not legally refuse to accept, but is required to
take delivery and make claim against the carrier
for the loss or damage.
Sec. (,B) — Prompt Action Necessary. The
shipment should be unloaded promptly as any
demurrage that accrues while the consignee is
making his decision must be paid by the consignee
and cannot be refunded under the law. (/. C. C.
Conference Ruling No. 451.)
Sec. (C) — Damages for Delay in Trans¬
portation. The carrier is not bound to trans¬
port shipment by any particular train or in time
for any particular market, but is obliged to trans¬
port with reasonable dispatch. If by unreason¬
able delay the goods have deteriorated or the
market value has fallen, the carrier is liable for
the difference between the market value of the
goods at destination at the time when they should
reasonably have arrived and the value at the time
of their actual delivery. See Hutchinson on Car¬
riers, Vol. 3, Sec. 1366.)
Sec. (D) — Basis for Loss Where Carrier
Confiscated the Property or is Guilty of Con¬
version BY Making Delivery to the Wrong
Party. Under the contract for transportation the
carrier agrees to transport to destination and
deliver to the consignee named. If, therefore,
the carrier confiscates the property for its own
use, or is guilty of conversion, it has abandoned
the bill of lading contract and cannot claim the
benefits of the conditions of that contract. In
such cases claim need not he based on the invoice
value at the time and place of shipment, but the
carrier is liable for the full value of the goods
at destination at the time when delivery should
have beet; made. (See Hutchinson on Carriers,
Vol. 3, Sec. 1374.)
Sec. (E) — Basis for Claims Against Rail¬
roads FOR Loss, D.\mage or Delay. If property
is wrecked, lost or damaged while in transit, the
basis of the carrier’s liability is that fixed by the
bill of lading contract, which the courts have up¬
held. This provides that claims shall be settled
on basis of the value of the property (being the
hona fide invoice price, if any, to the consignee,
including the freight if prepaid) at the time and
place of shipment under this bill of lading.
Under this provision the claim would be based
on the invoice value at the time and place of
shipment; but in Conference Ruling No. 387, the
Interstate Commerce Commission rules that if a
shipment was made several weeks later than the
contract of sale, and the invoice price was based
on a contract made some time prior to the ship¬
ment, the invoice price need not be accepted in
settlement if the market price had advanced be¬
yond the price fixed by the contract previously
entered into, and in that event the basis for claim
would 1)6 the market value of the commodity at
the time and place of shipment without regard to
the invoice.
Sec. (F) — Time Limit for Filing Loss, Dam¬
age OR Delay Claims. Claims for loss, damage
or delay must be filed within four months from
the time shipment is delivered at destination or if
.shipment is not delivered at destination, then the
claim must be filed within four months after a
reasonable time for the delivery has elapsed.
Sec. (G) — Notice of Claim. If for any rea¬
son the owner of the property is unable within
the four months period to secure the necessary
information or papers to file a complete claim for
loss, damage or delay, the provision of the bill
of lading requiring the filing of the claim within
the four months’ period may be legally complied
with if the owner of the property, within the
time specified, files with the agent either at desti¬
nation or point of shipment, or with the Claim
Department of the railroad, a written notice of in¬
tended claim, describing the shipment with rea¬
sonable definiteness. (See Interstate Commerce
Commission’s Conference Ruling No. 456.)
Sec. (H) — Claims for Reparation and Over¬
charge Which Require Presentation to the
Interstate Commerce Commission. The statute
of limitation on claims for reparation is fixed by
the Act to Regulate Commerce, which states that
all claims of this character must be filed with the
Interstate Commerce Commission within two
years from the time when the cause of action
accrues, and the Commission has ruled that the
cause of action accrues when the property is de¬
livered at destination. (See Interstate Commerce
Commission Conference Rulings Nos. 10, 306 and
307.)
In Louisville & Nashville vs. Dickerson, 191
Fed. 705, it was held that a letter to the Commis¬
sion within ;*he two year period, setting forth the
facts and containing a prayer for relief by way
of damages, is a sufficient complaint to stop the
running of the statute of limitations.
In Davis vs. Mobile & Ohio, 194 Fed. 374, it
was held that the only person entitled to recover
reparation on account of an excessive rate is the
party who was actually compelled to pay such
rate and who was damaged thereby.
Sec. (I) — Interest on Overcharge Claims.
(See Interstate Commerce Commission’s Confer¬
ence Rulings Nos. 379 and 464). In settlement of
an overcharge claim the claimant is entitled to
interest thereon at the rate of six per cent per
annum from the date of the improper collection,
except that in the settlement of an overcharge
claim involving a dispute as to the correct weight
or correct classification, the claimant is entitled to
interest thereon only from the date of presenta¬
tion of the claim to the carrier.
The Commission is of the opinion that when a
refund is made by the carrier within thirty days
it may be regarded as a cash transaction upon
which interest does not accrue.
In Case No. 6538, F. S. Scattergood & Co. vs.
L. S. & M. S. R. Co., shipment made in 1913
resulting in an overcharge of $6.16. Briefly, the
case is that the overcharge was paid on April
17, 1913, and finally the railroad tendered pay¬
ment for $6.16, amount of claim as filed, liut the
claimant refused this amount and insisted upon
interest being paid. The railroad declined. The
case was then submitted to the Commission on
August 14, 1914, and decided by the Commission
May 11, 1915, and they ordered the L. S. & M. S.
Ry. to pay the claim with interest at the rate of
6 per cent per annum from April 17, 1913, to
date, stating ;
“The single question presented is whether com¬
plainants are entitled to the interest claimed. In
Conference Ruling No. 464, the Commission de¬
clared in effect that Carriers should pay interest
on all unsettled claims for overcharges from the
date the charges are improperly collected.
“Neither the facts of record nor the arguments
advanced by defendant warrant a departure from
this ruling.”
Sec. (J) — Fxtract from Section 20 of Act to
Regulate Commerce. The Carmack Amend¬
ment TO THE Hepburn Rate Law. “That any
common carrier, railroad or transportation com¬
pany receiving property for transportation from
a point in one State to a point in another State,
shall issue a receipt or hill of lading therefor,
and shall be liable to the lawful holder thereof
for any loss, damage or injury to such property
caused by it or by any common carrier, railroad
or transportation Company to which such prop¬
erty may be delivered or over whose line or lines
such property may pass, and no contract, receipt,
rule or regulation shall exempt such common car¬
rier, railroad or transportation company from
the liability hereby imposed ; provided, that noth¬
ing in this section shall deprive any holder of
such receipt of bill of lading of any remedy
or right of action which he has under the ex¬
isting law.”
Demurrage.
Par. 4.- — We will not attempt here to quote
demurrage rules, owing to their great length
and further that these tariffs are on file with
all agents of the railroads, or can be easily ob¬
tained. We will, however, quote some of the In¬
terstate Commerce Commission Rulings.
The Commission in conference ruling No. 242.
endorsed the demurrage code which was reported
to the National Association of Railway Commis¬
sioners and by that Association recommended to
the state and interstate commissions.
Conference Ruling 313, April 10, 1911, quotes
demurrage rules in part :
Conference Ruling 451, January 6, 1914, the
Commission HFLD, the uncertainty of a con¬
signee as to whether or not he will accept a
damaged shipment does not justify the carrier
in waiving the demurrage charges accruing on
the shipment pending his decision.
Crescent Coal & Mining Co. vs. B. & O. R. R.
Co. et al. (20 1. C. C. Rep. 559) No. 1906 Annual
Report 1911.
Following Munroe & Sons vs. M. C. R. R. Co.
(17 I. C. C. Rep. 27), Tioga Coal Co. vs. C. R. 1.
& P. Ry Co. (18 1. C. C. Rep. 414), HFLD,
that shipper or consignee may not be required
to pay demurrage charges unless the carrier’s
tariff provided for same in clear and specific
form and manner.
Following Commes & McGraw vs. C. M. &
St. P. Ry Co. (13 1. C. C. Rep. 192) No. 1917,
Annual Report 1911, held, that demurrage may
not be assessed for except or because of failure
on part of shipper or consignee to comply with
his obligations.
Ownership.
Par. 1. Sec. (A) — Contract of Sale: The
acceptance of an order constitutes a contract be¬
tween the buyer and the seller, that is not subject
to cancellation except by and with the consent of
both parties thereto.
Terms and Conditions: The conditions under
which the sale is made and the order accepted
must be lived up to and a printed order or ac¬
ceptance setting forth the conditions of sale are
just as binding as a written contract of sale and
any notations written upon the order and ac¬
ceptance changing the printed conditions must be
done with the consent of both parties thereto.
Sec. (B) — The common custom is to sell coal
f. o. h. cars at point of shipment.
Sec. (C) — When the Seller or shipper, in
accordance with the contract or order of the
buyer or consignee, has delivered any goods to
the railroad company, the title passes to the con¬
signee as soon as they are delivered to the carrier
by the shipper, and the consignee, being there¬
after the Iqgal owner, is the proper party to re¬
cover from the carrier in case of any loss or
damage. The courts have ruled that if the goods
are delivered to the carrier by a shipper who has
orders from the consignee to make shipment, the
legal presumption will be that the goods imme¬
diately on delivery to the carrier become the prop¬
erty of the consignee, and as the owner he is the
proper party to file claim or bring suit to recover
for loss or damage. (See Hutchinson on Carriers,
Vol. 3, Sec. 1317.)
Sec. (D) — The Carrier’s Receipt or Bill of
Lading Is Fvidence of Delivery and in taking
same the seller or shipper is only acting in the
capacity of agent for the buyer who must there¬
after arrange for the prompt acceptance and un¬
loading of same at destination or, in case of
shortage, delay or damage, look to the carrier for
relief. (See Hutchinson on Carriers, Vol. 3,
Sections 1314 and 1317.) — Hand Book of the Cin¬
cinnati Coal E.rchange.
Wm. Dick’s Assailant?
Denver, September 9. — (Special Correspond¬
ence.) — Mike Mersillis, a Greek coal miner, has
been arrested at Salt Lake and will probably
be taken to Walsenburg to answer a charge
of complicity in the murder of William Dick,
coal operator of that place, last February.
Mr. Dick was murdered while taking a large
amount of money in an automobile from
Walsenburg to the Alliance mine, six miles
above La Veta, by five men. The murderers
failed to get the payroll money, which Dick
had hidden in the car, but they robbed his
l)ody. One man is already under arrest at
Walsenburg, and the identity of three others
has been established and it is believed they
will soon be in custody. The governor has
been asked to issue re<iuisition papers for
Mersillis.
No. 11]
THE BLACK DIAMOND
205
Hocking Valley Operators May Close Mines.
Columbus, Ohio, September 9th. — (Special
Correspondence.) — A meetin.g of an unusual
nature was held here Tuesday of this week
by the Hocking Valley Operators Association.
It had for its object the discussion of the plan
of shutting down Hocking Valley mines general¬
ly, as a move against Ohio United Mine Workers.
The cause of this proposed action is the alleged
breach of faith on the part of the union officials
in granting what is claimed to be more favorable
terms to the eastern Ohio field, in the recent
settlement of the long strike there.
Hocking operators signed up with the union in
July of 1914 on the mine-run scale, with the
express understanding, it is stated, that in making
settlement with other fields which held out the
union should not grant any concessions over
those given the Hocking district. The latter
insists that eastern Ohio is now enjoying a dif¬
ferential amounting practically to ten cents a
ton. Appeal was made to the union to adjust
this discrepancy. At a meeting of its executive
board, held here last week, no action for such
relief was taken. On the contrary, the president
and secretary gave out in a newspaper interview
the statement that they would stand pat on the
scale and working conditions now in force.
By the suspension, it is hoped to bring about
such discontent among the Hocking miners that
they will make terms with the operators inde¬
pendent of the union, rather than remain in a
state of destitution and idleness while eastern
Ohio is at work. The operators do not base
their policy on a retaliatory spirit, but claim that
they cannot compete with the more favored field.
While the Hocking domestic market is becom¬
ing strong enough to keep some of the companies
busy, they look upon this as temporary and
inadequate for the prosperity of the field, as
the domestic end of the coal trade averages
only about ten per cent of the total coal demand.
No definite action was taken at Tuesday’s meet¬
ing, but the project is to be considered further.
John H. Winder, general manager of the Sun¬
day Creek Company, is taking the lead in the
movement. He has himself set the mark by
closing down the company’s numerous Ohio
mines, which have now been idle a month or
more. In the meantime its sales force is being
kept intact through the jobbing of coal pro¬
duced outside the field. The theory is held
that there is considerable weakening of loyalty
on the part of the Hocking miners with regard
to the action of their officials, and that this will
grow if there is prospect of an idle winter.
Anthracite Labor Situation Is Intense.
WiLKESBARRE, Pa., September 9th. — (Special
Correspondence.)— “President John White of the
United Mine Workers, holds the keys to the situ¬
ation. White is the man that the whole thing
hinges on. If White says that the fight for
what the miners of the anthracite regions want
is to be a fight to a finish, it will be a fight
and no mistake about it. If he is sparring for
time and has some other way of getting what
he wants, that plan will be carried out. White
is the boss, anybody with half an eye can see
it.”
This was the observation of a mine official
who surveyed the situation as it appears on the
surface at the Tri-District convention of the
miners held in this city this week.
Further, as if in substantiation of what he
had said, this observer said :
‘‘The convention opened yesterday; everything
was formality. There was little other than the
routine of business in what the labor leaders
did or proposed. White was not here until this
morning and until he got ‘‘on the job” there
could be nothing done.”
To the hard coal operators who have been
watching developments that give an indication of
what may be expected in the way of the con¬
clusions reached at the convention, the stand that
White takes, means a forecast as to what has
to be expected between the present and April 1st.
Recognition of the union, the closed shop and
the check off are the three salient features
that have to be considered. So far. White, in
his propaganda that he has followed in the
hard coal fields for the past six weeks, and in
the speeches that he has made to the anthracite
miners, has committed himself to these features
and has said that he stands for recognition of all
three demands.
While the convention has been started and is
under way at this writing it is hardly thought
that the work of the delegates will be completed
in two or three days more.
Tuesday morning the convention was opened
by Major John E. Kosek of Wilkes-barre, who
was introduced by Thomas Kennedy, president
of the union’s district No. 7. The scale com¬
mittee and the credentials committee went im¬
mediately to work though they had not con¬
cluded their findings in the evening and their
reports were laid over until Wednesday.
Methods to settle disputes which are to replace
the present conciliation boards have received con¬
siderable attention. These boards have been in
existence since 1900 and have come in for con¬
siderable criticism from the miners. Long delays
in settlement are the serious stumbling blocks.
A thirty-day limit for settlement is one of the
things that President White has offered.
"JOHNSON
COAL Si WOOD
YARD
CITY PASR AVf
LEHIGH VALLEY
ANTHRACITE
THE COAL THAT SATISFIES.
LEHIGH
VALLE V
Yard of the Johnson Coal Company at Toledo, Ohio.
An enterprising coal concern of Toledo, Ohio,
which believes in advertising, and which has now
‘‘hung its banner on the outer walls” by putting
up a big fence with a Lehigh Valley sign on it, is
the Johnson Coal Company, with offices in the
Spitzer Iniilding. This is a young firm and com¬
posed of two hustling members, Andrew J. and
.Arthur L. Johnson. The present company was
formed in 1907, and though young, it has by
reason of hard work and honest dealing, built up
a good and growing business in its territory, both
wholesale and retail.
Duluth Coal Receipts.
Duluth, Minn., September 9th. — (Special Cor¬
respondence.) — Figures showing the receipts of
coal at the docks in the Duluth-Superior harbor
during August have just become available through
the office of the Tomlinson Company, vessel
agents here, and they show that up to the end
of the month 1,248,335 tons less have been re¬
ceived than during the corresponding period of
1914. Anthracite coal receipts show a gain of
33,820 tons, while
bituminous
shows a
falling
off of 1,282,155 tons.
The receipts at the
various
docks follow :
Anthracite.
Bituminous.
Total.
Northwestern Fuel Co..
. 77,809
. 32,200
167,300
245,100
Pittsburgh Coal Co .
156,300
188,500
Herwind Fuel Co .
70,300
70,300
Osborne .
5,600
73,800
79.400
Lehigh Valley .
. 22,000
22,000
Island Creek .
. 10,000
77,600
87,600
Clarkson .
3,000
36,300
39,300
Carnegie .
. 25,100
86,300
111,400
Reiss .
. 13,000
53,000
66,500
Zenith Furnace Co .
63.000
03,000
Hanna .
48,500
48,500
Reading .
. 33,600
32,400
66,000
(jreat Lakes .
34,000
34,000
.Steel Corporation .
142,500
142,500
August totals .
Year’s totals .
. 222,300
1,041,800
1,204,100
. 993,220
3,811,945
4,805,165
To .Sept. 1, 1914..
. 959,400
5,094,100
6,053,500
Government Loses Suit.
Denver, September 9. — (Special Correspond¬
ence.) — The government lost its suit to re¬
cover 2,280 acres of valuable coal lands owned
for years by the Porter Fuel Company and
located near Hesperus, La Plata county, when
Judge Trieber of Arkansas, sitting here last
week, held that the federal attorneys had not
established the charge that the defendants
knew there was coal on the lands when filings
were made.
The lands are valued at more than $500,000.
Evidence in the case had been taken for two
weeks. Among those who testified was Wil¬
liam R. Mason, who, with Joseph Vander-
weide, was once charged with the murder of
Joseph Walker, federal secret service agent,
while he was working on the case in the vicin¬
ity of the Hesperus mine.
The lands are now owned by the Lhiion Pa¬
cific Coal Company of Omaha, and the attor¬
neys for the latter corporation defended the
suit. The government probably will appeal
the case.
W. H. Glasgow, assistant superintendent of
the H. C. Frick Coke Company, with head-
([uarters at Scottdale, Pa., is recently in receipt
of information that awards have been offi¬
cially fixed by the international jury of the
Panama-Pacific Exposition to cover the ex¬
hibit of the United States Steel Corporation
and its subsidiary companies. Among these
awards is one to the H. C. Frick Coke Com-
|)any, which is a subsidiary of the United
.States Steel Corporation. The award is as
follows: ‘‘Medal of Honor — For combined
exhibit, including model of a modern coal and
coke plant, relief map of Connellsville region
and a nine-foot channel section representing
thickness of coal seam; also samples of coal
from mines as shown below. Five sample cubes
showing character of coal from the mines of
the United States Coal and Coke Company,
the Bunsen Coal Company and the National
Mining Company.” In explanation it might
be said that the medal of honor is next in rat¬
ing to the grand prize, of which there is but
one in each class. It was awarded to the ex¬
hibits receiving markings ranging from 95 to
too, inclusive; 100, of course, was used as indi¬
cating perfection.
The announcement is made by Perry Barker,
the well known fuel engineer, that he has
opened an office as consulting engineer and
fuel expert in the Oliver building. No. 141 Milk-
street, Boston. Mr. Barker is one of the well
known fuel experts of the country. He was
associated with the Bureau of Mines for quite
a while and in that capacity studied coals inti¬
mately. Then he became associated with a
laboratory in Boston and now has opened an
office for himself. Part of his equipment will
be a very complete laboratorj' for the testing
of coals, etc.
Julius Hellweg, secretary of the Baltimore Re¬
tail Coal Exchange, is sixty years of age, but
still willin.g to serve his country as a warrior,
lie volunteered the jiast week to attend the
military instruction camp at Glen Burnie, Md.
206
THE BLACK DIAMOND
[September 11
Energetic Labor Politics in Colorado
Denver, Colo., Sept. 9. — Members of the Colo¬
rado National Guard court of inquiry, appointed
by Gov. Carlson at the request of several militia
officers against whom charges have been brought,
recently made a partial report to the governor in
which they allege to have in their possession evi¬
dence in the form of letters and other docu¬
ments taken from the Burns Detective agency
here, which, they claim, show a general con¬
spiracy on the part of the United Mine Work¬
ers to prevent the reorganization of the state
militia.
They particularly mentioned having indis¬
putable proof that the United Mine Workers
of America had secured a detective agency to
spy on the movements of the recruiting offi¬
cers and that the mine workers and a detect¬
ive agency were working with certain public
officials to hinder recruiting.
It was further claimed that their evidence
included certain correspondence upon which
was based their knowledge of a plot to secure
the indictment of public officials and militia
officials for the purpose of trading upon such
indictments for the benefit of people involved
The obligations of a common carrier is to
correctly and accurately weigh coal trans¬
ported over its line and to furnish the shipper
true and accurate weight certificates and such
common carrier is accountable for the care¬
lessness and negligence of its agent, whose
duty it is to weigh such coal.
Where there has been a delay, merely in
the delivery of the goods to the consignee by
a common carrier, and not a conversion of
them, the measure of damages is ordinarily the
difference between the value of the goods when
they were delivered and when they should
have been delivered; to which may be added
reasonable expenses caused by the delay; but
if there has been a conversion of them by the
carrier and the consignee has not thereafter
accepted them, he is entitled to recover the
value of the goods at the time they should
have been delivered.
When a railroad company presents to a con¬
signee a bill of “demurrage” charges, the cor¬
rectness of a large part of which is bona fide
disputed, and demands, as a condition of con¬
tinuing such switching facilities, the payment
of the whole bill and an unconditional promise
to pay all such similar bills that may be pre¬
sented in future, the refusal of such consignee
to make such payment and promise does not
and under indictment in the so-called “strike”
cases.
One of the letters the court of inquiry
claims to possfess is said to disclose the fact
that the text of the recent decision of the
state Supreme court barring Judge Granby
Hillyer from further participation in cases
growing out of the Colorado coal strike was
sent to the Washington office of the detective
agency on August 5th, although the decision
was not handed down until August 16.
Gov. Carlson said that he had been reliably in¬
formed several weeks ago that a detective agency
was “exerting' every effort to prevent the enlist¬
ment of recruits for the state militia,” and that
they were employed by the United Mine Workers.
John McLennan, president of the United
Mine Workers’ local tonight, when called over
the telephone regarding the seizing of evi¬
dence from the local office of the Burns
agency, said:
“It is true that a detective agency has been
employed by the United Mine Workers to
investigate some of the acts of the Colorado
national guard and we have enough evidence
against it to create a sensation when we de¬
sire to give it out.”
furnish a sufficient legal reason to entitle the
railroad company to refuse to continue such
switching facilities.
A common carrier who, having received
goods to be carried to a designated place,
transports them to another place to prevent
their coming to the possession of the con¬
signee, and deprive him of their use and dis¬
position, is liable for conversion of the goods.
After such conversion, the consignee is under
no obligations to receive the goods; and it is
no defense to his action for their value, that
they were tendered to him after the conver¬
sion, and then stolen without the negligence
of the carrier.
The conditions of a bill of lading control the
common law liability of the « carrier subject
to the qualifications that the carrier cannot
relieve himself from the liability for his own
negligence.
As far as a bill of lading is a receipt and
not a contract, its terms may be contradicted.
A carrier is bound to deliver the goods to
the consignee; and if he delivers them to an¬
other person he is liable even if he has exer¬
cised due care. — Tri-State Bulletin.
3. If he either fails to inspect within a
reasonable time or fails to notify the shipper
promptly, he will be held as having accepted
the goods and must pay for them.
I take the following from a leading case
which states the law as it exists all over the
United States:
The seller is under obligation to afford
the buyer opportunity for examination of
the goods, so that he may satisfy himself
that they are in accordance with the con¬
tract. The buyer has the right of inspec¬
tion and a tender under circumstances not
permitting of an inspection is not suffi¬
cient to constitute or excuse delivery or
to put the buyer in default. But a refusal
to inspect where a reasonable opportunity
has been afforded constitutes a breach of
contract upon the part of the purchaser.
Only a reasonable time is allowed for in¬
spection. The place of inspection is the
place of delivery. Taking such possession
of the goods as is necessary to make an
inspection does not constitute acceptance
of them. The buyer must notify the seller
of the result of inspection.
Many of the cases turn on what is a reason¬
able time for inspection. There is no rule
about this — it depends on the peculiar facts of
each case. I recall one case in which a firm
bought goods that were to be delivered by
boat. They made no effort to inspect when
the boat arrived, but allowed the stuff to be
landed and delivered to them. Then they in¬
spected, found that the specifications had not
been complied with, and rejected. The court
said they were too late with their inspection
and rejection. Apparently they could have in¬
spected before the boat unloaded, and when
they let it go until everything was unloaded
and actually carted into their place, they did
not inspect within a reasonable time.
There are also several cases in which goods
were shipped via a railroad and where inspec¬
tion, under the rules of the railroad, could not
be made in the freight yard or anywhere on
the railroad’s premises. In these cases the
consignees took the goods to their own stores,
which under the circumstances were the only
places available, and inspected them there.
The point was the same — was inspection done
within a reasonable time, or was it waived by
taking the goods into the store? The courts
have always held that Inspection being im¬
practicable anywhere else, the consignee did
not accept the goods merely by taking them
into his store. He could reject after inspec¬
tion.
It should be remembered that inspection and
rejection are not of any avail whatever with¬
out notification to the shipper, which must be
just as prompt — in fact even more so, if any¬
thing — as the inspection.
It is a good rule to get around to inspecting
goods received just as soon as possible after
they are received. Prompt action as to this
will save many a snarl, if the goods happen
to be below what they should be.
{Copyright, August, 19/5, by Elton J. Buckley.)
Information for Receivers and Shippers of Coal
Inspecting Goods After They Are Received. a Promising Coal Field.
Some more law on the buying of goods is
brought forward by the following letter:
Rochester, N, Y.
Elton J. Buckley, Esq.
Dear Sir: We are having a fight with a
New York house over whether we have
to pay for some goods which they shipped
to us and which we found to be not
according to specifications. Perhaps you
can get something out of it for your col¬
umn, and at the same time give us some
light.
We ordered certain goods through one
of this firm’s salesmen. It was a line we
had been handling, which a year or so
ago had first been bought from samples.
All the shipments had been up to standard
except the last. When the goods arrived
we supposed they were up to sample as
usual, and did not examine them at once.
About ten days elapsed between the time
the goods were received and the time we
examined them, preparatory to delivery to
our customers. We then found them be¬
low standard and wrote the shipper, tell¬
ing him we would not accept them and
would ship them back. This we did, but
they refused to receive them and the rail¬
road company is now threatening to sell
them for the freight. Who is right?
The New York concern say the goods are
all right and in accordance with the con¬
tract, and that we accepted them.
Yours respectfully,
M - Bros.
This is a familiar situation in every day
business and is governed by simple and
familiar law. Let me say at the outset that
if the goods really are up to standard, this
correspondent will have to pay for them, of
course. They are justified in rejecting them
only if they are not up to standard, and not
even then if they have been too slow in in¬
specting and rejecting.
It is a fundamental rule, almost never de¬
parted from, that the buyer of goods has a
right to inspect them within a reasonable time
after he receives them, and that pending that
inspection, he cannot be held as having ac¬
cepted them. These points, however, are of
paramount importance:
1. He must inspect within, a time that is
reasonable under all the circumstances of the
case.
2. If he rejects he must at once notify the
shipper.
An examination of the coal resources of the
Pound quadrangle, which includes parts of
Pike and Letcher counties, Ky., and of Wise
and Dickenson counties, Va., has been made
by the United States Geological Survey, the
part of it that lies in Virginia having been
examined in cooperation with the Virginia
Geological Survey. Until recently the region
was entirely undeveloped, and little informa¬
tion concerning it was available, but it has
not escaped the attention of the coal operators,
for some of the largest corporations have ac¬
quired lands in this region with a view to
active development. The quadrangle probably
contains a greater number of coal beds than
any area of the same size in the Appalachian
coal field and will compare favorably with
most other areas in that field in the thickness
and extent of its beds. Within the last three
years railroad communication has been estab¬
lished with the outside world and in the Ken¬
tucky area 14 mines are actively shipping. In
the Virginia area only one large mine has
been operated, but doubtless others will be
opened in the near future. Mining conditions
are highly favorable and the region should be¬
come one of the principal coal-producing cen¬
ters of the central Appalachian coal field.
No. 11]
THE BLACK DIAMOND
207
Coal Trade Needs.
By E. W. Holt.
Treasurer of the Holt Coal Company of Central City, Ky.
Everything you state in your recent article on
coal trade conditions is true. It seems the more
depressed general market conditions are, the
cheaper the coal produced is offered though more
costly to mine owing to reduced tonnage.
It also seems the more costly labor, material
and general production becomes, the more des¬
perate the producer gets and the value of coal
at market and mines further reduced.
Unless some good common horse sense is so
used that we may all get a living and property
investment returns, individual effort in the coal
industry will be a thing of the past, and the
whole list will be under the direction of finan¬
ciers instead of coal men, and the present owners
will be employes, with the opportunity of seeing
much value and wealth producing property,
where before was but work, worry and credi¬
tors, and with property without value for much
money and years of best effort invested. It does
seem as though there could be and undoubtedly
is some safe and sane and law-abiding manage¬
ment by which our industry as a whole could be
economically, profitably and intelligently con¬
ducted to preserve into our coal mining business
its prestige, and profit necessary for it to prosper,
as a financial failure of a business of such im¬
mensity is certainly to a great disadvantage to
the present owners, the country at large and the
future coal consumers, as the latter will certain¬
ly have the bill to foot in the end.
I have thought these things over to a great
extent and it seems to me that your outline of
regulation as to districts, grades, restriction as to
sizes, etc., can be worked out, production, etc.,
evened up with consumption or fluctuated accord¬
ingly.
To get these things all will take some educa¬
tion to get the uneducated in the proper channel
of thinking will, I believe, take a good man or
two of the proper calibre, convincing talkers, and
with all data carefully compiled and in_ their
possession to well cover each producing district,
and, as the life insurance companies do, talk the
proper way of thinking into the bulk of trade,
which will probably bring results in the future;
there is too much cheap contracting just now for
'much hope soon.
By a Mine Owner.
I think the whole trouble is largely on account
of the individuals who are controlling the vari¬
ous coal companies all over the country.
A few years ago there was a great rush to
get into the business on account of the profits
of the anthracite strike year bein.g so widely
published. It brought into the trade people who
had no conception of what the coal business
was, and they have lost money from the start
and have not gained anything by their experi¬
ence. They are now generally trying to sell
out and it is only a question of time until some¬
thing will be done towards the grouping of
larger companies.
The other class of disturbers are those men
who are trying to hurry the ultimate result of
these consolidations by forcing lower prices, so
that the losses will be heavier to these people who
have no business in the trade.
It would seem that with the general condi¬
tions of the country, resulting from the war and
political reasons, that by the time the next up¬
ward rise of the trade comes, the conditions will
be very much better for the fuel industry.
By a Western Operator.
There is no question, of course, that systematic
co-operation, fortified by statistics giving facts
and figures with reference to coal mines and
coal production, would bring enlightenment to
all of the operators, but particularly to a class
who do not keep sufficient records to know what
their operating cost is. And, I would say in
connection with it, that there isn’t a class of
business men that I know of anywhere that
have such a large percentage of them so com¬
pletely uninformed as to the actual working
charges of their property, as in coal mine opera¬
tions.
I can only now give you just one idea to think
over, and one which, I believe, would brin,g to
the industry as a single subject, more genuine
good than any other, and that is : The estab¬
lishment of a uniform system of aceounting for
coal mines. If you can bring that about you
will accomplish more for the investors in coal
mine property than any other publication or per¬
son has ever done.
The fact of the matter is, there is an enormous
number of small operators who really never know
what their actual cost of production of coal is.
That is one reason why they sell their product
cheaper than they can afford to do it ; in doing
so, they set the pace for everybody else. We
know to a certainty every month exactly what
the production cost is; in fact, we know from
day to day.
Such items as taxes, insurance, casualty ex¬
pense for personal injuries, etc., are charged up
monthly, so that not only such things as that
and the actual payroll cost of supplies go into
our records, but depreciation, legal, and, in fact,
every item of every kind and nature concern¬
ing the cost of producing coal for a given period
— thirty days — goes into our records. We know
how much supplies we have on hand, and every¬
thing is maintained in orderly fashion.
I have always held to the opinion that the
sellin.g end would be far less troublesome if the
operating end was only properly taken care of:
1. In proper laws for development ;
2. Proper laws for the operation ;
3. Proper and severe penalties for violations
of the laws;
4. Proper system of accounting, by which
every operator would know just what his coal
costs, and not drift along to the end of the year,
The accompanying illustration is from a photo¬
graph of the car dumper built last year for the
Pittsburgh & Conneaut Dock Company (U. S.
Steel Corporation) at Conneaut, Ohio. This ma¬
chine embodies a number of features which are
an improvement over any machine previousl:('
built. Some of them are as follows :
The machine was built to handle 100-ton cars.
It is provided with a disappearing haulage
car, so that the haulage car runs backward under
the loaded car and in this way eliminates the
delay in former practice of holding the loaded
car on the incline until the haulage car had
reached the pit.
It is electrically operated in all the smaller
movements, while the large units are operated
by steam. Electrical operation, which is a new
feature, has an advantage over the steam opera¬
tion in that the man located on the end of the
pan is able to control all movements of the pan
and chute. By this means it is possible to de¬
liver the coal in the hold, with minimum break¬
age and delay, while in the steam machine the
man on the end of the chute controls only the
telescopic chute and the trimmer, and it is, there¬
fore, necessary, when he is required to change
when lawyers’ bills, tax bills, insurance bills, and
bills for personal injuries, find their way into
the office of the operator all in a bunch, without
a dollar to pay them. Then he realizes for the
first time that the coal he sold for twelve months
ought to have, in order to have brought him out
even, been sold at from eight to ten cents per
ton more than he sold it for.
Go on and campaign on the subject of uni¬
form accounting, and in that one thing alone
you will do the industry a great deal of good.
Coal Imports of Sweden.
During 1914 the amount of coal imported into
.Sweden amounted to $24,082,083, or practically
the same amount as during the previous year.
Almost all the coal is imported from Great Brit¬
ain, but owing to the export prohibition on this
article by the British Government, Sweden has
been forced to import considerable quantities
from Germany and the United States. These
latter imports, however, are small as compared
with the large amounts imported from Cardiff
and Newcastle. During the six months ended
May, 1915, 125,000 tons of steam coal were pur¬
chased in the United States by the Swedish State
railways. Considerable quantities of Silesian coal
have been imported for the purpose of mixing
with other coal and with coke. The city gas
works of Stockholm is now using a certain
amount of American coal.
the elevation of either end of the pan, to signal
the operator in the house on the end of the
machine to make the necessary change. This
requires so much delay that the pan is usually
placed at a high position and coal allowed to
run, but with the improved electrical operation
the chute operator can deliver the coal exactly as
he wishes.
He can raise or lower the inner end of the
pan, raise and lower the outer end of the pan,
swing the telescope back and forth and revolve
the trimmer. All these operations may be per¬
formed simultaneously.
It is also provided with counterweights so
as to reduce the amount of power required to
operate.
This machine has transferred from cars to
vessels 315 cars in seven hours, an average of
forty-five cars per hour. It has also transferred
fifty-three cars in one hour.
The machine is constructed entirely of steel,
no woodwork being used ; even the window sashes
are made of steel.
All possible safety devices have been applied
and all safety rules of the steel corporation were
observed in the construction.
New McMyler Car Dumper for the Pittsburgh & Conneaut Dock Company.
A Car Dumper Operated by Electricity.
208
THE BLACK DIAMOND
[September 11
American Mining Congress.
Tlie following is the provisional program of
the eighteenth annual session of the American
Mining Congress at San h'rancisco, California, on
September ;’0-22. OfiFlcial headquarters are at
the Palace hotel, where the registration desk will
he open until Monday noon — thereafter at the Ex¬
position Memorial Hall.
MdN'DAY, SKPTKMUKK 2(1.
Morning Session, ro:oo A. it/.
OpeninK session, Kxpositioii Memorial Aiulitorinm.
Car! .Scliolz.
icli
Invocation.
Synopsis of president s annual addre.ss,
Clncago, 111. . ,
Two-minnte responses from representatives ot .sue
states as de.sire opportunity to express a word of greet¬
ing to fellow members of the convention.
Selection of Committee on Uesolutions.
Disposition of program. (It is jiroposed that the con¬
vention itself shall decide upon the time for the discus¬
sion of each subject, and that those who are willing to
attend such discussions shall fix the time. It is hoped
hv this plan that no speaker will be called upon to
aildress empty seats, while the convention members are
inspecting the exposition.)
.Cljournment.
.Afternoon Session, 2:00 P. M.
I Diiless otherwise ordered by the convention the fol¬
lowing program will be carried out.)
Introduction of resolutions.
Address — “What the United States Bureau of Mines
Is Doing and Hopes to Do for the Metalliferous Mining
Industry.’’ — Van II. Manning, Director United States
Bureau of Mines. ^ ■ c- • ,
Address — “Plain Writing.’’— Dr. George Otis Smith,
Director United States Geological Surrey.
Discussion.
.\ddress — “Federal Influence in the Settlement of In¬
dustrial Disputes.’’ — Dr. Martin D. Foster, Congressman
from Illinois, Chairman House Committee on Mines and
Mining.
Discussion.
.\djournnient. (No evening session.)
TUESDAY, SEPTEMBER 21.
Morning Session, 10:00 ,A. M.
Introduction of resolutions.
Final Report of Committee on Prevention of Mine
.\ccidetits. — Dr. W. R. Ingalls, Chairman, New York City.
Report of Committee on Uniform Mine Reports. —
Samuel A. Taylor, Chairman. Pittsburgh, Pa.
Report of Committee on Alaskan Affairs. — Falcon Jos-
lin. Chairman , Fairbanks, Alaska.
Report of Committee on Revision of Mineral Land
Laws. — E. B. Kirby, Chairman, St. Louis, Mo.
Discussion under five-minute rule.
I’aper — “Rights of Way Over the Public Domain.” —
lion. Charles S. Thomas, United States Senator from
Colorado.
,'\ddress — “The Right of .Vppeal from Decisions of the
Interior Department in Cases Where the Government Is
Charged with An Interest.”— 11. 11. Schwartz, Portland,
Ore.
Discussion — State versus Federal Leasing of Natural
Resources Where Government Control Is Essential to
Public Welfare.
Statement by the secretary, followed by open discus¬
sion under five-minute rule.
Report of Committee on Resolutions.
12:00 Noon.
Memorial exercises in honor of Dr. Joseph A. Holmes,
late Director of the United States Bureau of Mines, chief
inspiration of mine safety work in the United States,
publicist, humanitarian, public servant, who wore out his
life in the services of his fellowmen.
(Speakers to be selected.)
Report of Committee on Testimonial to Dr. Holmes.
Adjournment.
Afternoon Session, 2:^0 P. il/.
Address — “California’s Water Infiltration Law.’’ —
Fletcher McN. Hamilton, State Mineralogist, San Fran¬
cisco, Cal.
Discussion — Thomas A. (^’Donnell, Los Angeles, Cal.;
W. W. Orcutt, Los Angeles, Cal., from the standpoint
of the oil operators; Ralph Arnold, Los Angeles, Cal.:
Harry R. Johnson, Los Angeles, Cal., from the stand¬
point of the geologist.
Evening Session, 7:^0 P. M.
Meeting of members for the election of directors and
general discussion of the affairs of the organization.
WEDNESDAY, SEPTEMBER 22.
Morning Session, 10:00 A. M.
Introduction of resolutions.
Report of Committee on Resolutions.
Report of Committee on Workmen’s Comi)ensation. —
J. W. Dawson, Chairman, Charleston, W. \’a.
Report of C^ommittee on Freight and (^re Treatment
Rates. — Imer Pett, Chairman, Salt I^ke City, Utah.
Paper — “The Development of Mine Taxation in Ari¬
zona.’’ — G. IT. Dowell, Bisbee, Arizona.
Report of Committee on Mine Taxation. — I). L. Webb,
Chairman. Denver, Colo.
Address — “Mining on Government Indian Reservations.’’
— F. Lynwood Garrison. Philadelphia, Pa.
Address — “Workmen’s Compensation Insurance and the
Coal Mining Industry.” — Herbert M. Wilson, Pittsburgh,
Pa.
Address — “The New Plan of Mining Insurance.” —
David Ross, Springfield, Ill.
Address — “Mining Hazards on the Pacific Coast.” —
Dr. F. L. Hoffman, Newark, N. J.
Discussion under five-minute rule.
Afternoon Session, 2:00 P. M.
Report of Committee on Mining Investments. — W. R.
Allen, Chairman, Butte, Mont.
Address — “The Iron Resources of Utah.”- — Prof. Fred
J. Pack, Salt Lake City, Utah.
Address — “The Future of the American Zinc Indus¬
try.” — Otto Ruhl, Joplin, Mo.
Address — “Interesting Phases of the Anthracite Coal
Mining Industry.” — Dr. E. Parker, Wilkesbarre, Pa.
Address — “Federal Control of the Coal Mining Indus¬
try,” including a discussion of the Sherman law, the
Clayton bill, and the Federal trade commission. — Rush C.
Butler, Chicago, Ill.
Discussion under the five-minute rule. — Led by W. L.
Saunders, New York City.
Final report of Committee on Resolutions.
Adjournment.
WEDNESDAY EVENING.
A complimentary bamiuet will be tendered to Mr. Van
H. Manning, the new director of the United States
lUireau of Mines. All mining men will be welcomed.
(Arrangements for invitations may be made at the office
of tile secretary at the convention head<iuarters, Palace
Hotel.)
Newspapers on Parker.
PuibAiiKi.PHiA, Scpteml)er 3. — {Sf’ccial Corre¬
spondence.) — Daily newspapers are funny crit¬
ters. They are like a really and truly honest
old maid, who, when asked why she still was
single, said :
"Well, I picked and I chosed and I never could
find anything perfect under God’s footstool.”
“In one of its issues of last week the Bulletin
of this city carried an editorial on the appoint¬
ment of Edward W. Parker as head of the An¬
thracite Bureau of Information. First it paid a
compliment to Mr. Parker and then cast an asper¬
sion on the position he occupies and winds up
with the assumption that “naught can be right
if coal operators are mixed up with it.”
Here is the editorial-;
“The selection of Edward W. Parker, who for
a quarter of a century has prepared the annual
reports on anthracite and bituminous production
for the United States Geological Survey, to take
charge of the Anthracite Bureau of Information,
maintained by the coal producing companies at
Wilkes-Barre, might he a gain rather than a
loss to the public interest, if he were to be given
a free hand in the collection and publication of
information concerning anthracite production and
distribution.
“The .selection has been made, it is authorita¬
tively explained, because of Mr. Parker’s record
for accuracy in statistical matters during the past
twenty-five years of public service and for his
intelligent discussion of causes and effects, which
has made the Geological Survey reports models
of their kind. With the free, unobstructed access
to the facts which his new office might he sup¬
posed to afford him, his opportunity for public
service should exceed any afforded in the Geo¬
logical Survey. His long training and his own
high sense of fair statement may he looked to as
a guarantee that he will serve the public well,
even in private employ, but it would be far more
of a boom if he were to be turned, foot-loose, into
the field of anthracite facts and were enabled to
give full publicity to what he may find there.”
Now it is a well established fact that in the
city of Philadelphia there is not a newspaper
that is willing to handle a news item in an un¬
biased manner. Everything that can be used in
anyway shape or form to deliberately cause a
reflection on one of the biggest industries of the
state and the men who put their money in this
enterprise, is “peaches and cream” from the edi¬
torial writers down to the cub reporter who
scents a coal item.
Ask any anthracite man who has had dealings
with the daily newspapermen in Philadelphia what
has been his conclusion as to the method em¬
ployed in writing news articles. The writer has
met many who have vowed their intention to
say nothing when matters appertaining to their
business comes along in the news items of the
moment. And in each instance there has been
an actual case where deliberate contra-version of
the news has been the cause of the resolution.
No better inference can be drawn than from
the fact that when some of the coal men and
the business they conduct have been actually black¬
guarded in lurid stories that had little founda¬
tion other than the one-sided light of the re¬
porter’s conception, an attempt has been made to
set the writer or the newspaper corrected and
little or nothing of the explanation has been used.
In the case of Mr. Parker the true stand of
the newspapers of this city can be read as you
run. Perhaps you might go back and read the
editorial over again. Maybe the point will be
clearer.
August Anthracite Output,
Au.gust anthracite shipments were 5,330,831 tons,
against 5,483,740 tons for August of last year.
For eight months the decrease totals 1,961,049 tons.
Lowther R. Ferris, formerly of Chicago and
later with the Zenith Furnace Co., Duluth, has
organized the North Portland Coal & Dock Com¬
pany, Portland, Ore., and intends to do a geO-
eral coal dock business at that point. He will
handle eastern coals.
Price of Coal Act.
In its final form the English Act to provide
for the limitation of the price of coal reads :
1. (1) Coal at the pit’s mouth shall not be
sold or offered for sale directly or inciirectly by
the owner of the coal or on his behalf at a price
exceeding by more than the standard amount per
ton the price of coal of the same description,
sold in similar quantities, and under similar con¬
ditions affecting the sale, at the pit’s mouth at
the same coal mine on the corresponding date (or
as near thereto as, having regard to the course
of business, may be practicable) in the twelve
months ended the thirtieth day of June, nineteen
iumdred and fourteen (in this .’^ct referred to as
the correspondin.g price).
(2) The standard amount shall be four shill¬
ings: Provided that the Board of Trade may,
by order, if they are satisfied, as respects any
class of coal mines specified in the order or the
coal mines in any district so specified, that owing
to special circumstances affecting those mines the
standard amount of four shillings should be in¬
creased, substitute for that amount such higher
sum as they may think just in the circumstances;
and as respects those mines this Act shall have
effect as if the higher sum so substituted were
the standard amount.
(3) If any person sells or offers for sale any
coal in contravention of this section he shall be
liable on summary conviction to a fine not exceed¬
ing one hundred pounds or, at the discretion of
the court, to a fine not exceeding treble the
amount by which the sum paid or payable for any
coal sold by him in contravention of this section
exceeds the maximum sum which would have
been paid or payable for the coal if there had
been no contravention of this section : Provided
that a person shall not be liable to a fine under
this provision if he shows that he had reasonable
grounds to believe that he was not committing
an offense.
(4) This section shall apply (both as respects
the price at which coal is sold or offered for sale
and as respects the corresponding price) to a
case where the owner of coal at the pit’s mouth
has sold or offered to sell that coal at a price
which includes the cost of railway or other in¬
cidental services besides the actual value of the
coal at the pit’s mouth, as if he had sold or of¬
fered to sell it at the pit’s mouth at that price
reduced by an amount representing the cost of
those services.
(5) It is hereby declared that nothing in this
section shall affect the rights or obligations of
any person under any contract or a.greement for
the sale of coal except, in cases where the sale
is in contravention of this section, as respects so
much of the price as exceeds the maximum price
which could have been charged for the coal if
there had been no contravention of this section.
2. (1) Where coal is conveyed from the pit’s
mouth over any railway in trucks not belonging
to a railway company, the seller of such coal
shall not be entitled to charge for the use of
the trucks any sum exceeding by more than 50
per cent the sum which the railway company con¬
veying the coal was actually chargin.g for the
provision of trucks at the commencement of this
Act.
(2) If any person charges or attempts to
charge for the use of any trucks in contraven¬
tion of this section, he shall be liable on summary
conviction to a fine not exceeding one hundred
pounds.
3. (1) If in any proceeding any question is
raised as to the correspondin.g price of any coal,
or as to the cost of railway or other incidental
services, or as to the sums charged for the use
or provision of trucks, the court shall refer the
question for determination by the Board of
Trade, and the decision of the Board shall be
final and conclusive for all purposes.
(2) If for any reason there are not adequate
data at any coal mine from which to ascertain
in accordance with the foregoing provisions of
this Act, the corresponding price at that mine,
the Board of Trade may fix that price, having re¬
gard to data afforded from sales of coal at other
mines.
(3) The Board of Trade may require the
owner of any coal mine to furnish such informa¬
tion as appears to them necessary.
Quite a delegation of coal dealers from Winona
visited the Twin Cities this week in attendance
at the state fair, including Geor.ge Beck of the
Western Grain & Coal Company; Henry Gillette
of the Gillette-Solomon Coal (Company, Steve
(Idea of John Odea, and Julius Lind, Jr., of the
Lind Coal Company.
No. Ill
THE BLACK DIAMOND
209
Taking Advantage of the News.
-A good business man frequently makes use
of a “nose for news.” That is to say, he trans¬
lates news developments into terms of his own
business, and in the event that he can score a
point in that connection, he immediately pro¬
ceeds to do so.
The simplest illustration of this is when the
shoe dealer sticks a sign on his windows — “Ruh-
hers” — when the rain begins to fall. Wet pave¬
ments call attention to fractured soles, and this
is “news” to the shoeman.
Coal dealers can make use not only of weather
conditions to advertise their business — as for
instance when the prediction is for snowfall and
colder, or something of that sort — ^but of various
other happenings.
The writer recently noted that in Chattanooga,
Tenn., the sealer of weights and measures is get¬
ting a good deal of newspaper space on the
strength of his efforts to protect the consumer
against short weights on the part of the coal
dealers. He has conferred with them, explained
the law, and then announced, through the press,
just what the requirements are, so that the con¬
sumer can advise of any violations. The sealer
does not charge that the dealers have been guilty
of giving short weights; but, just the same, he
brings them up on the carpet, reads them a
lecture on commercial honesty, and sends them
out feeling somewhat conscience-stricken. With¬
out deserving it, they have been put on the de¬
fensive ; and the public, without knowing any¬
thing about it, gets the idea that perhaps the
official sealer is camping on the trail of some of
the short-weight fellows.
An aggressive dealer, instead of being put
at a disadvantage by a development of this sort,
couid make a feature out of it that would reflect
credit on his own business. He could advertise
that he is not only complying with the law
and with the regulations of the authorities cheer¬
fully, but is going further. He could explain how
the scales are tested — not only as frequently as
required, but more frequently. He could go
on to explain how the tare weight of the wagon
is determined, and how it is reweighed before
every loading. He could show that instead of
being prodded into doin.g so by the officials, he
had anticipated the requirements, and gone to all
necessary lengths to protect the consumer in this
respect.
An announcement of this sort, in connection
with the news of the work of the sealer, would
be a strong argument in favor of doing business
with that particular concern.
And that is only one instance of making busi¬
ness-getters out of news items.
Branches a “Necessary Evil”?
The manager of a large retail coal company,
which has four branch yards, in addition to
the main distributing station, said recently that
the operation of the branches is a “necessary
evil.” In other words, in his opinion, they are
necessary to a large distribution, covering the
whole community, but they are not ideal, from
many standpoints.
“I don’t see how you can get away from
branch yards in a large city,” he said, “if you
expect to be able to sell coal to anybody in the
community who a.sks for it. If you have one
yard only, no matter how centrally located it
may he, many of your hauls are going to be so
long that they cannot possibly be profitable. Even
motor trucks would not solve the problem com¬
pletely, liecause there are many places, in the
suburbs, to which the long hauls are made, more
especially, where it would be impossible for a
motor truck to make the delivery, because of the
poor road conditions.
“The branch yard works fine when business is
good, but it is a load that gets mighty heavy when
it is only fair or is poor. The yard represents
investment and expense, in the form of foremen
and equipment, which are especially conspicuous
when there is no work for them to do. It is
simply a question of carrying the load until busi¬
ness is sufficiently heavy from each district to
keep each yard busy.”
In this connection, it seems that the greatest
successes are won when a concern is operating
a line of yards handling a number of staples, like
coal, ice, building materials, etc. The overhead
expense of a series of yards, when it must he
figured into the business on only one commodity,
is likely to prove excessive. That is why more
than one ambitious coal company which has
established branches has finally eliminated them
as costing more than they are worth.
Heading Off Errors.
A frequent source of trouble at many retail
yards is sending out teams to the address of a
customer who ordered his coal in July, say, for
delivery in September, only to find that the
family is still away on vacation and that it is
impossible to make the delivery.
In view of the fact that most of the storage
business is put on the books with the date of
delivery given only in a general way, it is de¬
sirable to telephone the customer in advance of
actual delivery of the coal to find out if every¬
thing is all right. This will take only a few
minutes, and it may save a lot of trouble. Even
if the customer originally named the date when
he wanted his coal, conditions may have arisen
which will make it inconvenient for him to re¬
ceive it at the time stated. If so, the chances
are that the dealer has not been notified to this
effect, and the only way for him to find out is
to telephone.
Special instructions regarding getting access
to the coal bin should also be secured by tele¬
phone, unless the instructions have been fully
written upon the original order-card, which is
the best plan of all. If the customer lives in a
new section of the town, where the streets are
not of the best, it is very helpful to the drivers
to know which is the most satisfactory road to
follow.
In other words, the whole proposition of giv¬
ing satisfactory service to the customer in con¬
nection with deliveries is to find out from the
customer how, when and where the coal is to
he delivered. And the quick way to find out these
things and to head off possible mistakes is to
telephone and ask for instructions.
House Organ Material.
One of the legitimate objections frequently
made to house organs in the coal business is that
the matter which they contain is frequently irrel¬
evant, and consists of dissertations on every
other subject but that about which it is sup¬
posed to treat.
For this reason a little article, “What Is Coal?”
ai)pearing in the September number of the pub¬
lication of the J. A. Mahlstedt Lumber & Coal
Company, of New Rochelle, N. Y., is interesting,
and may. he worth using in other dealers’ house
organs. It is as follows :
“Quite interesting when you think of it, isn’t
it ?
“What? You don’t know how coal is formed?
Then listen.
“At the time known as the Coal Period large
areas of low land were choked with vegetation,
which dried at the bottom, I)ut kept growing at
the top.
“The plants partially decayed and the weight of
the vegetation above pressed them closely to¬
gether. Time passed and these areas were de¬
pressed and covered with sand and water. After
remaining under water a long time, they were
again elevated by some upheavel, and the sand
Iiecame rock. Over this rock soil accumulated,
and in the soil there flourished more vegetation
similar to that previously destroyed.
“In time another upheavel sank this below the
water and destroyed it. The pressure and heat
brought about by these changes converted the
vegetable matter into coal.
“Sounds simple, doesn’t it? Almost makes you
think you can take a few ferns, a little sand
and a bucket of water, and go out in the back
yard and make coal : but it isn’t worth the trouble
when you can buy Mahlstedt’s Guaranteed Coal
at a few dollars a ton.”
Determining Truck Sizes.
One of the important questions connected with
tlie installation of a truck or trucks in a coal
yard is determining the proper load capacity
to specify.
The character of the business and the number
of trucks to be used will probably have a good
deal to do with determining what the best com¬
bination would be.
For a yard with but one truck, the two-ton
size would doubtless be the most practicable, in¬
asmuch as most of the orders admit of delivery
in two-ton lots. Even the regular business,
consisting of single loads during the consuming
season, is largely two-ton orders. Besides, as
most of the horse-drawn equipment is likewise
of the two-ton variety, that would seem the
natural unit to use in changing over to motor
power.
When the dealer finds it possible to install
more than one truck, however, he should consider
the question of using larger sizes. For long
hauls such a truck can make the best possible
showing, and when orders of considerable size
are being filled, the big truck can dispose of
them in such a short time that any other method
seems foolish.
A big yard in an eastern state has three trucks.
Two of them can carry two tons apiece, and the
third will handle five tons. The first two take
care of the small orders, while the big fellow
simply eats into the coal pile and gets rid of the
large orders, which ordinarily tie up smaller
equipment for such a long time that all other
work is interfered with. Of course, the bigger
the truck, the greater the investment ; Init the
showing made on the money tied up makes the
proposition well worth while.
Serving the Public.
“It has just occurred to me,” said a prominent
coal dealer, who has made a great many im¬
provements in his yard, in connection with the
handling and delivery of coal by modern meth¬
ods, “that the members of the trade owe the
public the best facilities that can be had. In
other words, it is up to us, as coal dealers, to
install equipment that will enable us to handle
our coal at a minimum of cost and in the least
possible time, so that we can sell it at the lowest
possible price and deliver it with no more delay
than absolutely necessary. If we fail to do this,
the price charged for coal may represent our
actual costs, plus only a moderate profit, and
some members may even lose money at the price;
yet if the selling price could be lowered by use
of better methods and more up-to-date equip¬
ment, it would he the duty of the trade to pro¬
vide these things. We owe them to the public.”
According to the reports made to the Bureau
of Mines by State mine inspectors 135 men
in all were killed in and about the coal mines
in the United States during June, 1915, as com¬
pared with 100 during June, 1914. If seven
fatalities in June, 1914, for which there are no
comparable figures for June, 1915, be deducted,
the figures become 135 for June, 1915, and 183
for June 1914.
210
THE BLACK DIAMOND
[September 11
FUBI^ISHSD EVERT SATTTBDAT BT THE
BEACH BZAlCOin) COHPAHT.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. _ Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOND COMP ANT (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1602 Oliver building.
Saturday, September 11, 1915.
INDEX.
Special Articles.
Page
Vital Facts on Coal Storage in Three Sections . 201
Standardized Accounting for Illinois Mines . 203
Coal Mining in Montana . . , . 203
Things a Retailer Should Know of His Business. . . 204
Hocking Valley Operators May* Close Mines . 205
Anthracite Labor Situation Is Intense . 205
Duluth Coal Receipts. . . 205
Energetic Labor Politics in Colorado . 206
Information for Receivers and Shippers of Coal.... 206
Inspecting Goods After They Are Received . 206
A Promising Coal Field . 206
Coal Trade Needs . 307
A Car Dumper Operated by Electricity . 207
Newspapers on Parker . 208
Price of Coal Act . 208
American Mining Congress . 203
Field of the Retail Dealer . 209
Editorial . 210
News Local to Chicago . 312
Coal Output in 1915 . 213
Anthiacite Coal in 1914 . 213
Bids for and Contracts Let on Coal . 212
Facts Which Determine Our Export Prospects . 213
New Orleans Coal Rates . 217
Production of Coal in 1914 . 15
Market Reports.
General Review and Chicago . . 214
Pittsburgh, Twin Cities and Birmingham . 215
Cincinnati, Detroit and Omaha . 216
Cleveland and Duluth . 217
New York Trade . 318
Philadelphia and Denver . 219
New England, Buffalo and Baltimore . 220
Hocking Valley . 15
Duluth’s Figures.
Statistics just received from Duluth
show that the receipts of anthracite coal
up to the 1st of September were 993,220
tons. This compares with receipts for
the corresponding period of last year of
959,400 tons. This shows that anthracite
shipments made a gain of 23,820 tons.
Up to September first, this year’s ship¬
ments of bituminous coal to Duluth were
3,811,945 tons. This compares with ship¬
ments to the corresponding period of last
year of 5,094,100 tons. This shows a loss
of 1,282,155 tons.
Total shipments to Duluth, up to Sep¬
tember first, were 4,805,165 tons. This
compares with shipments for the corre¬
sponding period of last year of 6,053,500
tons, or a loss of 1,248,335 tons.
The total figures show that falling off
in bituminous was heavy enough to over¬
come the small gain in anthracite ship¬
ments and still show a reduction in the
total volume of 1,248,335 tons. In these
days, when we are accustomed to talk of
coal production and coal consumption in
so many hundreds of thousands of tons
as though they were baskets of coal, that
figure does not sound very large. Yet,
after all, a million and a quarter tons of
coal is quite a pile. To have one of the
major ports on the upper lakes show a
falling off of that amount gives the coal
trade quite a job if it is going to make up
that shortage before the year is out.
In this connection, it must be remem¬
bered that the lake season has only about
two months and a half to run. Making
up a million and a quarter tons of coal in
that time means that the normal amount
must be moved, plus about 500,000 tons
a month. With cars short, with the docks
filled with coal, with the upper lake rail¬
roads busy hauling grain and hence not
able to move much coal away from the
docks, it does not seem altogether likely
that this shortage is going to be made up.
Of course, there is this one offset. Many
docks have quite a lot of coal held over
from last year. The held-over coal may
to an extent make up the shortage. How¬
ever, the amount of coal moved by lake
last year contemplated a normal .winter
and less than normal business activity. If
we have a very cold winter, which is
prophesied, and if we have the revival of
business, which is also prephesied, the
northwest situation may be none too easy.
The immediate point, in connection
with the northwest figures, is not that we
treat of one distributing district alone, be¬
cause it would be comparatively easy to
satisfy even a great shortage in one city.
The fact is that Duluth figures are repre,
sentative ; that is, there is a coal shortage
everywhere. That general shortage aver¬
ages fifteen or twenty-five per cerit or
more, even as the Duluth figures show a
shortage of fifteen or twenty per cent.
While making up the shortage at Duluth,
which the mines must do, they must at
the same time make up a similar coal
shortage in other places.
But, in the other places, there is no
storage coal to rely upon. Elsewhere, the
storage piles have been stripped down
about to the planking.
Everything considered, the fuel situa¬
tion for this winter is not encouraging for
the consumer. It certainly is not encour¬
aging when the growing car shortage is
taken into consideration.
About the Weather.
This year the weather has been playing
tricks upon all of us. We all started away
on our vacations and immediately we did
the heavens opened and poured down a
flood. We sloshed around for the days
of leave in water and mud and Anally,
when our time was up, returned to work
to find the weather as near perfect as the
summer has offered.
After that experience, we hoped for a
few good week ends. But, alas ! Satur¬
days and Sundays were dismal and gen¬
erally the rain fell. When Monday came
and we had to go back to work, the
weather was fair and fine.
The farmer had about as disagreeable
an experience. He put off hauling his
grain to town for days and days during
which it rained. Then came a warm spell
when the roads dried up. He started to
town with his grain, expecting to haul
home a supply of coal. He got as far as
town when another shower came, making
the roads too soft to haul the coal ; he was
pleased if he got home with his empty
wagon.
And yet, while the summer was cold,
it was not cold enough to make people
interested in buying their winter’s supply
of fuel. The one thing they were most
interested in was getting rid of the surplus
fall of water and fighting the mosquitoes.
Thus the weather has played tricks all
summer on the individual and on the coal
trade.
Now that fall is coming, we are won¬
dering what the beastly thing is going to
do next. Since there has hardly been a
warm week in the whole season, it would
be characteristic if the utterly perverse
weather should turn warm and supply an
open fall and thus postpone still further
the buying of domestic coal.
No, the weather this summer has not
gotten upon our nerves. It has not
turned us into sour pessimists. We are
not prophets of evil. Instead, we are
merely commenting appropriately on the
weather. We are wondering what is go¬
ing to be the situation this fall. Indica¬
tions so far in September are that “Indian
summer” will be all the summer we are
to have this year.
A Tip to Mr. Walsh.
The papers say that Erank Walsh,
chairman of the Eederal committee on in¬
dustrial relations, is about to report on
the Colorado mine strike. His will be
about the seventeenth or eighteenth re¬
port made on that subject, so another one
or two will not matter much.
If not too late, there is a matter which
we would like to call to his attention as
bearing upon the tenor of his report. In
the Colorado labor dispute he is going
to have to consider the United Mine
Workers of America as an organization;
he cannot report upon the Colorado strike
unless he does.
Mr. Walsh is inclined to glorify all
unions and to villify all capitalists. There¬
fore he is likely to glorify the United
Mine Workers of America in his Colorado
report. He probably thinks that he has
good reason for doing so, because John
D. Rockefeller, a capitalist, is at least a
suppositious opponent of the mine work¬
ers.
Before he goes too far in making little,
or even imaginary, tin gods of the mine
workers’ officials, we wish he would, in¬
quire into a recent incident in Arkansas.
There the United Mine Workers had a
brush with the Bache-Denman Company.
Mr. Bache, who set out to break up that
union, may not be the most discreet man
in the world. Nevertheless, he is neither
a Rockefeller pawn nor a frenzied finan¬
cier in his own name. In fact, he is now
bankrupt. We do not say that the offi¬
cials of the United Mine Workers did it
or even that any members of the union
are guilty. It is true that properties of
the Bache-Denman Company were burned
down and in some rioting several persons
were killed. No one in that territory ex¬
cept union adherents had any reason for
committing the crime.
There was a case of both murder and
arson.
Although the Arkansas incident is simi¬
lar to those in Colorado, we do not say
that there is any direct relation between
the two. We do not say even that a pol¬
icy of the union is thus exposed. We
only suggest that Mr. Walsh, a public
official, might do well not to become too
enthusiastically in favor of labor unionism
until the obvious suggestion is out of the
air. His report, otherwise, might convict
him of bias.
No. 11]
THE BLACK DIAMOND
211
The Wholesaler’s Credit.
In many respects, the coal operator is
in the debtor class. Often he mines coal
on a royalty basis. Therefore, he is in
debt to the landowner for even the coal
which he works. Many times he buys
machinery and pays for it in installments.
Therefore he is in debt to the machinery
manufacturer for the things which he uses
in mining coal. Again, the operator relies
upon the bank for cash to meet his pay¬
rolls and other obligations. He is thus
depending upon others for his money. In
these three major respects the operators
are in the debtor class, to say nothing, of
course, of the obligation which the aver¬
age operator owes to the owners of his
bonds and the holders of his stock.
It is about time, it seems to us, that
those who are lending money to the coal
operators should take some steps to make
sure that they are going to get their
money back. The bank, for example,
should insist that the operator run his
business at a profit. If this is not done,
the banker should call the loan. The
credit man of the bank can have a tre¬
mendous influence on coal if he only has
the courage to insist upon his right as a
money lender.
A bank, we will say, has loaned money
to a coal operator to meet his pay-rolls,
et cetera. The credit man should make
sure that the coal produced by that com¬
pany is being sold at a sufficient profit to
assure that the principal and interest are
going to be paid or his first duty to the
bank is to advise the officers to call that
loan.
We are convinced that many operators
accept the current prices on coal because
they know that they are not going to get
into trouble with the bank if they make
no money for a while. They say that
they cannot get a better price, but are
conscious often that they are not making
the best effort to improve conditions. In¬
fluenced by today’s condition, rather than
by a long-time policy, they yield a trifle
too easily to the buyer’s suggestion that
they make a cut. If they kn^ that they
had to get a profitable price dr have their
loans called, the operator would soon find
a way to get a profitable price. In this
connection, there is this to be said : Not
enough mining companies are indepen¬
dent of the banks to overturn the pro¬
gram if the banks insisted upon a profit¬
able price as a basis for loans.
In the same way, the land owner and
the machinery producer could refuse to
let their material be used unless the prod¬
uct was going to yield such a profit as
would insure that their bills be paid. The
machinery manufacturer, for example,
could say :
“You are wearing out my machine, but
are not getting enough for your coal to
make sure that you will be able to pay
my bill. Therefore, I am going to take
my machine out of your mine.”
The land owner could say :
“You are digging up and shipping
away my coal. Yet you are not getting
enough for it to assure me that I am go¬
ing to be paid. Therefore, you may mine
no more of my coal.”
That is to say, there are a great many
ways of stopping the orgy of price cutting
which has prevailed for quite a while. This
can be done without damage to anyone
and without forming any trust or entering
into any trust agreement. The only thing
necessary is a few courageous men to
say :
“You may go to war with your own
capital and munitions all you please, but
you cannot carry on your war with things
which belong to me.”
Who Makes the Money?
Every coal man is convinced that we
are going to have, pretty soon now, a
shortage of coal. Every railroad man
knows that we are running into a shortage
of cars. What the railroad man knows
about the car shortage explains what the
coal man knows about the coal shortage.
This is so because the coal shortage is
going to result from the car shortage.
Both coal men and railroad men know
that as a result of a coal and car shortage,
we are going to have higher prices. Do¬
mestic coal that ordinarily sells for $1.60
to $1.85 will probably be selling soon for
$2.25 or. $2.50. Indeed, if prices do not
rise above the latter extraordinary figure,
it will be a surprising thing. Also, screen¬
ings which normally sell for sixty to sev¬
enty-five cents a ton in the fall and winter
months are likely to rise to $1.00 a ton
or better.
These figures indicate that the coal
trade is likely to make a great deal of
money. It is very easy to make calcula¬
tions as to how much this is going to
amount to. For example, we will take
a mine of three thousand tons a day capa¬
city. We will say that the rise in price
will be fifty cents a ton. That means that
a three-thousand-ton mine will make clear
profit over and above what is ordinarily
made of about $1,500 a day. Multiply that
by the number of days that the coal short¬
age is likely to last and, as Ezra Kendall
used to say, it looks like a season when
“good gravy” will be overflowing in the
bowl.
But no man in the coal business has
ever seen this thing happen — except, of
course, on the rarest of rare occasions.
For example, a mine of three-thousand
tons capacity does not produce, during the
period of car shortage, three thousand
tons ; ordinarily it gets out fifteen hun¬
dred tons. Right there the profit is cut
in two — assuming there is a profit.
However, this coal company, rather
than being at liberty to sell all that fif¬
teen hundred tons at a high price, finds
that it is under contract to deliver to
regular customers two thousand tons a
day. The car shortage cuts the production
down to fifteen hundred tons a day and
it is short on its contracts about five hun¬
dred tons a day. There the profit disap¬
pears. Instead of an enormous profit of
$1,500 a day, the mine operator finds him¬
self actually facing a loss because he has
to get coal from somewhere to make good
his contracts.
Who, then, in time of car and coal short¬
age, with extraordinary prices ruling,
makes the money? Who gets the “good
gravy”? In the first place, the amount of
velvet is vastly overestimated. In the
second place, what there is of it usually
goes to the small, inconsequential mine
with coal so poor that ordinarily it can¬
not be sold, or it goes to the jobber who
has been able to pick up a few cars of
coal from scattered sources at a low price.
In other words, the high prices in coal
are mostly fictitious. They apply on a
very small volume of business.
Matter of Credit.
It will be conceded at once that a man’s
credit standing rests as much on his abil¬
ity as on his willingness to pay. In other
words, a man might be most willing to
pay, but if he hasn’t the money, he can
not fulfill his obligation.
It will be conceded also that a man has
not the ability to pay unless his business
is profitable and his collections are being-
made.
Under these two circumstances, the
credit man for a wholesaler or a producing
company should take into consideration
the profitableness of the prospective buy¬
er’s business and all things which relate
thereto. For example, if the credit man
finds that a retailer is engaged in a price
war with his neighbors, he must make an
entirely new cast of that man’s credit
standing. The dealer may have been for
years one of the most upright business
men in his community. He may have
paid his bills promptly and shown every
disposition to be fair. However, the price
war changes his whole business complex¬
ion. It does not change his character, but
it does alter his ability to pay.
That is, when his warring spirit is
aroused, he may sell his coal at cost or
even at less than cost. He has set out
on a campaign for tonnage and the
chances are that he will extend credit to
persons who can not pay up promptly or
who may not pay at all. Such things hap¬
pen often in such insane wars. In other
words, he has gone to war with his neigh¬
bors, and the purpose of that war is
to prevent the other fellow from getting
any business at all. One expression of
such a war is to dissipate revenue. An¬
other expression of it is to become lax in
the matter of credit. These two things
undermine the whole business standing
of that retailer. As a natural consequence,
they must change his credit standing.
Until the dealers straighten out their
local difficulties and begin to do business
on business principles, it is clearly the
proper attitude of the credit man of the
operator to refuse to extend any credit
to any price-cutting dealer. As a matter
of fact, such is the only stand which any
credit man can take.
The producer should let the retailers
know that they can go to war if they
want to and can fight among themselves
all they please, but while they are at war
they must pay cash for the coal. In other
words, the operator should take the posi¬
tion :
“If you want to fight, do so with your
own munitions and not mine. If you want
to fight with mine, you must do the way
the United States is compelling the war¬
ring powers of Europe to do — pay cash
for what you get from me.”
We are of the opinion that if retail
price wars were conducted solely with
the retailer’s own cash, there would be
fewer price wars. The thing that keeps
most of them alive is that they are fight¬
ing not with their own capital, but with
the coal forwarded by the operating com¬
pany. The most effectual way to stop
it is to demand that coal be paid for be¬
fore it is given away.
212
THE BLACK DIAMOND
[September 11
News Local to Chicago.
J. F. Emmet, general sales agent of the Cen¬
tral Coal & Coke Company, Kansas City, Mo.,
was in Chicago this week for a few clays.
The Bickett Coal & Coke Company report
the appointment of Fee Abbott as Minneapolis
sales agent, succeeding Mark Wentworth.
Frank Browning returned this week from a
trif) to the Twin Cities. He reports dealers
fairly well stocked in the northwest, but very
little coal has been put in consumers’ bins.
Clark Roberts, of E. L. lledstrom & Co., in
the Marcpielte building, is away on a short
vacation which he is spending at his summer
place at Angola, N. Y.
I'he Buchanan Coal Company has appointed
I'. E. Barlhelme manager of their Minneapolis
office, succeeding James Rend, who has re¬
turned to the Rend Coal & Coke Company.
N. S. Barrett, for many years in the retail coal
husiness at Urbana, Illinois, has sold his yard
to Brownfield & Turner, who now conduct two
yards in that city.
George B. Harrington, president of the Chi¬
cago, Wilmington & Franklin Coal Company,
has been on an eastern trip for ten days. The
offices of the company in the McCormick build¬
ing are being completely remodeled.
T. E. B. Siler, of Charleston, W. Va., while
in Chicago this week, said he looked for a
good market for West Virginia coal for the
next six months. The foreign demand taking
tlie surplus tonnage, coupled with a car short¬
age and a scarcity of labor, all indicate higher
prices.
Paul James, who was until recently repre¬
sentative of the C. Ci. Blake Coal & Coke
Company, with headquarters in the Lytton
building, but who resigned, effective August
1st, has been persuaded to abandon his inten¬
tion to retire to his Virginia farm and is now
representing the Pocahontas Coal Sales Company
in Virginia and the Carolinas.
James h'. Callbreath, secretary of the .Xmerican
Mining Con.gress, will be in Chicago the latter
part of this week and the first of next, stopping
off here on his way to San Francisco where he
is to complete arrangements for the annual meet¬
ing of the congress and especially for the han-
(|uet which is to be given by the congress to
Van H. Mannin.g, the new director of mines.
Rush C. Butler, the attorney who has repre¬
sented the coal trade on a number of important
occasions, will go with the Chicago party to San
Francisco to attend the meeting of the American
Mining Congress. He will deliver an address on
the federal control of the coal industry, a sub¬
ject which he has studied carefully in connection
with his work on various governmental commis¬
sions.
Word comes from the northwest that Low-
ther R. Ferris, who some years ago was ac¬
tively associated with the coal trade in Chi¬
cago, but who more recently has been con¬
nected with the Zenith F'urnace Company,
has formed the North Portland Coal & Dock
Company and is going to handle eastern coal
in Portland, Ore., getting his receipts by the
Panama Canal route.
The committee of the Chicago Coal Mer¬
chants’ Association is preparing a memorial
for David Broderick, a member of that organ¬
ization who recently died as a result of a lin¬
gering illness, at his home. No. 3()49 Archer
avenue. Quite a number of members of the
association attended the funeral, which was
held from St. Agnes’ church on August 29th,
and now the association is preparing to place
itself on record as appreciative of Mr. Brod¬
erick’s position in the retail trade.
Announcement has just been received over
the signature of H. N. Taylor, vice-president
of the Central Coal & Coke Company, that
E. J. Knickerbocker, who has been assistant
to the vice-president, has been promoted to
the position of first assistant general sales
agent of the coal department, taking the place
of A. P. Moore, who resigned. It will be
remembered that Mr. Knickerbocker was
prominently associated with the coal business
in Chicago for quite a while, being fuel agent
for the Rock Island-’Frisco lines, then with
the O’Gara Coal Company, and later with the
Monon Coal Company.
Van H. Manning, director of the United States
Bureau of Mines, together with two of his assist¬
ants — Mr. Rice and Mr. Swift — will be in Chi-
ca.go on Saturday of this week stopping off here
on his way to San Francisco where he is to
attend several mining meetings. Arrangements
are being made under the auspices of the Illinois
Coal Operators’ Association for some of the
leading operators in the state to meet Mr. Man¬
ning on this occasion at the Union League Club
where an informal luncheon will be held. C. M.
Moderwell, president of the association, will be
the official host and it is expected that those pres¬
ent will embrace the leadin.g operators of Illinois
and Indiana.
The party of coal men who are going to the
meeting of the American Mining Congress at
San Francisco will leave here on Tuesday
evening of next week. As previously indicated,
Carl Scholz, president of the congress, has
been trying to get together a party that will
fill at least one car, and maybe two, carrying
coal men from this district and the east to
San Francisco. The indications are that the
party will take up two cars with perhaps room
for a few more if any coal man decides at the
last minute that he wants to go. The inten¬
tion is to leave here over the Rock Island and
spend part of a day in Salt Lake City and get
into San Francisco Saturday morning. The
memorial service for Dr. Holmes will be held
on September 21st and that evening the con¬
gress will give a banquet to Dr. Holmes’ suc¬
cessor, Van H. Manning.
Geo. W. Reed, president of the Lincoln-
Springfield Coal Company, calls attention to a
curious situation with respect to screenings. This
time a year ago he and others were selling fine
coal at thirty cents a ton at the mines and were
apparently pleased to get orders at that figure.
This year not a car-load of screenings so far has
been sold for less than fifty cents, and even then
for only a day at a time. This year the market
is fifty to sixty cents, or twenty-five cents a ton
higher than they were last year. Mr. Reed says
there is no better demand this year than there
was last and the supply is no less. The point
of difference is that at this time a year ago if
there was any free coal on hand it was very
easy to assume that there was really more of
it than there was. This year various statistical
bodies are compiling information showing about
how much free coal is being produced, there¬
fore, it is no longer a matter of guess, the sales
agent knows in detail the situation confrontin.g
him. The difference between an ignorant .guess
and the facts makes a difference of twenty-live
cents a ton or more in the price of the coal.
By the death of William Hammerstroem,
who died after a short illness September 2d,
and was buried at Rosehill last Sunday after¬
noon, Chicago lost one of its progressive citi¬
zens. After a brief service at the home. No.
1255 Elmdale avenue, the body was taken to
Rosehill chapel. Mr. Hammerstroem was a
member of the Garden City Lodge No. 389,
1. O. O. F., and for twenty-three years was
grand treasurer of the Arbeiter Unterstutzung
Verein. Born in Tueckhude, Pommern, Ger¬
many, in 1854, he came to America, arriving
with his parents in 1858. At the age of twenty-
one years he started in the coal business at
No. 760 North Halsted street in a very small
way. By persistent effort and hard work he
succeeded in building up a wonderful business.
In 1886 he purchased the rail yard of David
Jamison at Clybourn and Garfield avenues and
the St. Paul tracks, where he continued suc¬
cessfully until some years ago, when he re¬
tired from active business. He achieved suc-
cuss, not by overreaching his fellowmen, or
by any questionable means, but through hon¬
est industry, and he bequeathed to his family
not only an abundance of this world’s goods,
but also the priceless heritage of a good name.
Surviving him are the widow Minnie (nee
Thilo) and two children, Hulda and George.
Coal Output in 1915.
. The output of bituminous coal in the United
States for the first six months of 1915 is esti¬
mated by C. E. Lesher of the United States
Geological Survey to be between 180,000,000
and 190,000,000 short tons, the rate of produc¬
tion having been from 85 to 90 per cent of
the average for the previous year. Thus the
bituminous coal production during this six
months’ period has been considerably less
than for the corresponding period in 1914, and
is little, if any, greater than the output dur¬
ing the last half of that year. The rate of
production this year decreased after January,
reached low ebb in March and April, and is
now on the increase. The states west of the
Mississippi river, which in 1914 produced less
than 13 per cent of the total, do not appear
to have suffered from this decrease as much
as the Eastern States — reports from certain
districts in the west showing an increase over
1914. This is attributed to the increase in
metal mining and smelting, and to, greater
railroad activity. In the east the loss of
bunker trade on the Atlantic seaboard and
the slowness of the lake season have been
only partly offset by the increasing coal ex¬
ports. The recent activity in the iron busi¬
ness has been slow to affect the coal trade,
although coke has gained considerably dur¬
ing the last two months and for the rest of
1915 the increased output should continue.
The anthracite producers have fared better
than the soft coal operators, since it is esti¬
mated that the output of anthracite has fallen
off only from 3 to 5 per cent below the aver¬
age for 1914.
Anthracite Coal in 1914.
Pennsylvania produced 81,090,631 long tons
(90,82'1,507 short tons) of anthracite in 1914,
according to figures made public by the United
States Geological Survey, the value of the out¬
put at the mines being .$188,181,399. This repre¬
sents but a slight decrease as compared with the
previous year, in which the record output of
anthracite was attained. Anthracite is used al¬
most exclusively as a domestic fuel, and fluctua¬
tions in the demand depend almost entirely upon
the temperature during the winter. The main
influence on supply is the amount of labor and
the time lost by strikes. Labor was abundant
in the anthracite regions in 1914, and almost
180,000 men were employed in the production of
that fuel. Although there were a great many
strikes and a large number of men were affected,
the strikes were all of a petty nature and of
short duration, 26,115 men, or about 15 per cent
of the total, being involved for an average of
7 days each. A part of the decrease is accounted
for by the fact that Canada imported almost half
a million long tons less of Pennsylvania anthra¬
cite than in 1913.
Bids for and Contracts Let on Coal.
Bids were opened on September 4th by the
600,000 tons of coal, to be used on the canal for
There were fourteen bids, as follows:
.1. n. Weaver & Co .
B. Nicol! & Co .
Corona Coal & Iron Company .
■Vrcliibald McNeil & Sons Co .
Central Coal & Coke Company .
Wm. C. Atwater & Co., Inc .
B. Nicoll & Co .
Crozer-Pocahotnas Company .
C. G. Blake Company .
Willard Bros .
Castner, Curran S: Bullitt, Inc .
Pocahontas Fi el Company .
Chesapeake & Ohio Coal Company .
New River Coal Comp.-my .
*Suhject to changed specifications.
Panama Railroad Company for 500,000 to
twelve menths, ending September 16, 1916.
Delivery.
Philadelphia
Newport News
Mobile
Newport News
Pt. Arthur, Tex.
Lambert’s Point
Newport News
Philadelphia
Baltimore
Lambert’s Point
Hampton Roads
Newport News
Sewall’s Point
Hampton Roads
Price.
Tonnage.
Coal.
$2.60
500,000
Colver
* 2.50
50,000
Belmont
3.85
100,000
Corona
2.89
100,000
New River
4.25
200,000
Arkansas
Semi-Anthracite
2.60
300,000
Pocahontas No.
2.64
300,000
Sewall
2.60
50,000
Cambria
2.53
2.60
100,000
Pocahontas
2.75
120,000
New River
2.84
100,000
New River
2.90
600,000
Pocahontas
New River
2.85
600,000
Pocahontas
New River
2.74
180,000
Admiralty
2.72
105,000
.4dmiralty
2.79
120,000
Admiralty
2.85
100,000
New River
Hampton Roads
Sewall’s Point
Newport News
Newport News
Sewall’s Point
No. 11]
THE BLACK DIAMOND
213
Facts Which Determine Our Export Prospects.
The Export Situation.
LInofficial figures of exports of bituminous coal
from the three principal tidewater exporting ports
— Hampton Roads, Baltimore and Philadelphia —
for the month of August, show shipments of
between 990,000 and 1,000,000 tons. Official
figures may make the total over 1,000,00() tons,
which would make August the third month in
succession to see export shipments in excess of
1,000,000 tons.
August shipments from the ports, as per fi.gures
now available, show :
Hampton Roads . 628,995 tons
Haltimore . 210,000 tons
Philadelphia . 156,000 tons
994,995 tons
This compares with July exports, as follows:
Hampton Roads . 712,995 tons
Baltimore . 258,585 tons
Philadelphia . 171,027 tons
1,142,567 tons
h'or the three months, June, July and August,
our exports from the above-named ports have
reached approximately 3,200,000 tons, or withiti
1,000,000 tons of the total exports for the entire
twelve months of 1914. The fact that August
shipments showed a decrease as compared with
July does not necessarily mean a slackening of
demand for export, but really an inability to
secure vessels within the month for loading upon
contracts that are as yet unfilled. As indicating
the activity this month, Baltimore, during the
first four days of this month, shipped 55,597 tons,
eleven vessels takin.g this tonnage.
Reports at hand show a corresponding activity
at Hampton Roads.
While no new orders of large tonnage are re¬
ported as being closed during the past week, some
business has been secured, and inquiries from
practically all of the countries to which we are
at present exporting show a very healthy demand.
Inquiries for American coke for shipment to
the Mediterranean as well as to South America,
are becoming more frequent, and France is said
to be inquiring for several lots, aggregating about
50,000 tons for early shipment.
It has been known for some months past that
Castner, Curran & Bullitt, Inc., have enjoyed a
good coke trade with some of their South Ameri¬
can connections. Eventually it is believed, if
vessel tonnage can be secured upon terms that
will permit, American shippers will come in for
a lot of coke business that Germany formerly
supplied.
The Welsh Coal Situation.
Cable advices from Wales late last week indi¬
cated that the miners had been satisfied by the
latest settlement made by President Runciman
of the Board of Trade and had returned to work.
cable on Tuesday of this week stated that not¬
withstanding the settlement made by arbitration
of last week between representatives of tbe
Government, miners and the owners, fresh trotible
has broken out over the employment of miners
who are not members of the miners’ federation.
On that day 2,500 men struck because non-federa¬
tion men were being employed, and it was statefl
that further trouble was feared.
Latest mail advices from Cardiff show that
the restrictions made by the government on
shipments to foreign countries are greatly re-
tardin.g business. While licenses for exports are
said to be made more freely than heretofore, it
is stated that the procedure is so bound up with
red tape formalities that delays of several days
frequently occur, which causes both the shipper
and the vessel owner a great deal of trouble.
Instances have been cited where a shipper has
been granted a license for exports to a particular
port, and red tape methods have held him up
for three days before he could commence load¬
ing. Instances are named where Cardiff shippers
have been fined by the Customs for loading with¬
out perrnission, who had elected to load and await
the issuing of licenses. Shipments from Cardiff
for the last week reported amounted to 351,748
tons, as compared with 161,207 tons in the corre¬
sponding week of last year, or an increase of
190,481 tons. This is the first time that the ex¬
ports have shown an increase as compared with
the corresponding period since the outbreak of
the war, but it is stated that about a year a.go
business was practically at a standstill, except
on Admiralty account, and that every effort was
then hein.g made to assist the government to the
exclusion of every other interest.
France has shown an improvement, but the
biggest increase has been to South American
ports, which took for the week reported over
28,0(10 tons. As regards prices, the market has
been irregular with a tendency toward easier.
Best and second Admiralties are still out of
the market, being retained for government pur¬
poses. For ordinary qualities prices range from
24s to 25s, with slight reductions for inferior
grades. Due to the accumulation in stocks of
Monmouthshire coals, prices of these coals have
cased. Best Black Veins are about 23s 6d to
23s 9(1; Western Valleys, 22s 3d to 22s 9d, and
Eastern Valleys, 21s 9d to 22s 3d. The small
coal market has been on the decline with sub¬
stantial concessions being made in order to clear
up loaded wagons that have accumulated at the
piers. Best bunkers are 20s and 20s 6d ; ordi¬
naries about 2()s, and cargo sorts 11s to 12s per
ton.
Hampton Roads August Exports.
Exports of bituminous coal from Hampton
Roads for the month of .August and destinations
by countries, was as follows :
('ouiitry — Tonnage
Italy . 272,114
Argentina Republic . 112,286
Panama . 40,300
Brazil . 39,070
Cuba . 32,150
Uruguay . 27,021
France . 23,694
(Ireece . 10,720
Spain . 10,194
French West Africa . 0,650
Jamaica . 0,807
Danish West Incles . 5,405
Cape X’^erde Islands . 5,419
Barbados . 4,500
Porto Rico . 4,110
Portugal . 3,993
Mexico . 2,157
Chile . 1,535
England . 1,479
Ecuador . 1,025
San Domingo . 923
Azores . 711
628,995
Baltimore August Exports.
Unofficial figures of exports of bituminous coal
from the port of Baltimore during August, 1915,
are as follows :
Country —
Argentine
Sweden . . , .
Ecimdor . .
Cuba .
Colombia . .
Italy .
■Spain .
Brazil ....
Egypt -
Panama ...
France . .
Greece ....
Uruguay . . ,
Tonnage
. 16,1,30
. 36,714
, . 6,018
. . 17,2.52
, . 2,570
, . 79,906
. . 8,741
. 8,150
. 10,299
. 3,123
. . 5,400
. 4,407
. . 3,335
Total . 202,045
Several cargoes unreported will probably iti-
crease above by Ki.tidO tons.
Recent Coal Freight Charters.
Steamer Gaertis (Greek), Virginia to River Plata, coal,
34s. Sept.'Oct.
Steamer Maritime CBr.), Atlantic Range to San Fran¬
cisco, coal, $4.25, Sept.
Steamer - *, Atlantic Range to San F'rancisco,
7,900 tons coal, $4.20, Sept. -Oct.
Steamer Roddam (Br.), Virginia to Montevideo or
Buenos Aires, coal, 32s 6d prompt.
Steamer St. John (Swed.), Baltimore to Gothenburg,
coal, p. t.
Schooner Iona Tunnel, Philadelphia to Cay Francis,
coal, $3.
Steamer Skogstad (Nor.), Norfolk to Havana, coal, p. t.
Steamer St. Theodore (Br.), Baltimore to Genoa, coal,
p. t., prompt.
Steamer Liiisi (Span.), Baltimore to Valencia, coal, p. t.
Bark Bruce Hawkins, Philadelphia to Yabucoa, coal, $4.
Schooner Evelyn W. Hinkley, Philadelphia to Guaya-
iiilla, P. R., coal, p. t.
Steamer Erviken (Nor.), Baltimore to Rio Grande do
Sul, coal, p. t., spot.
Steamer Belgier (Br.), Baltimore to Marseilles, coal,
p. t., spot.
Steamer Warren (Br.), Baltimore to Buenos Aires, coal,
p. t.. spot.
Steamer Antonios Strathatos (Greek), Virginia to River
Plata, coal, about 40s.
Steamer Aldersgate (Br.), Gantoise (Belg.), and Veer-
haven (Dutch), Virginia to River Plata, coal, 34s, prompt.
Steamer Atland (Swed.), Baltimore to Stockholm, coal,
p. ,t.
Steamer Bendew (Br.), Baltimore to Barcelona or
Valencia, coal, p. t.
Steamer Prime (Ital.), Baltimore to west coast of
Italy, coal, p. t.
Steamer Doonholm (Br.), Virginia to west coast of
Italy, coal, about 41s Od, Sept.
Export Trade Briefs.
Consul L. J. Keena of Valparaiso, Chile, writes
that official figures of the imports of roal and
coke into Chile for 1914 are now available, giv¬
ing the amounts for the individual countries from
which they were received. The coal imports by
countries, in metric tons of 2,204.62 pounds, were ;
Great Britain, 527,576 ; Germany, 46,157 ; Bel¬
gium, 17,208; Holland, 2,621; Australia, 516,889;
LInited States, 143,404; India, 3,704; total, 1,257,-
559.
The coke imports were : Great Britain, 9,588
metric tons ; Germany, 20,031 ; Belgium, 4,647 ;
Holland, 4,040; Australia, 6,720; United States,
1,885; total, 46,011.
At a recent meetin.g of the Cardiff Chamber
of Commerce, T. E. Watson, the president, re¬
ferred to the price of coal (limitation) act. He
said : “When the authorities were increasing
labor costs by adding to the wages of the men,
they passe(i a hasty and ill-considered measure
limiting prices at which owners might sell for
home consumption. This was done without giv-
in.g the local colliery owners any opportunity of
stating their position, but the act caused no obli¬
gation of the owners to sell at any particular
price, and the government then attempted to
remedy this defect by an order prohibiting ex¬
ports except to British possessions. When a
deputation has pointed out the unfairness of this,
the government agreed to grant licenses if the
coal owners formed amon.g themselves a mutual
scheme for giving an adequate supply for home
consumption, and such a scheme is now in prepa¬
ration.” He described the modus operandi for
the granting of licenses as being full of “red
tape of obstruction.”
According to the Colliery Guardian of London
in its issue of August 27, Russell Rea, chairman
of the Coal Exports Committee (of London) has
made answer to some comment upon the condi¬
tion with regard to the issue of licenses for ex¬
port. He states that the apprehension of increased
difficulties to shippers of coal are groundless;
that exporters will consign their cargoes to re¬
sponsible a.gents as heretofore, and that upon
this shippers' will incur no additional responsi-
liilities, and that the limitation of exports is
designed, as has been previously announced, to
ensure sufficient supplies for the home market ;
and one idea mooted is that the trade should
organize for export purposes and avoid competi¬
tion between merchants. This is the old idea of
1). A. Thomas, brought out in his pamphlet pub¬
lished a few years ago ; that gentleman, who is
the chairman of the (Cambrian Combine, and now
at work in America on behalf of the Munitions
Department, having compiled statistics and worked
out fully a scheme whereby competition between
coal owners should be restricted, and the highest
price .gained for export, rather than that the
present system of competition, with consequent
reduction of price, should be continued.
Latest Cardiff advices show that prices of patent
(briquet) fuel are rather easier in sympathy with
the decline of small coal, best grades offering at
34s 6d and second qualities at about 2s 6d less.
It is reported that about 30,000 tons of fuel for
the French railways have been placed, the price
believed to be about 27s per ton.
Welsh coal merchants have taken decisive
action altering the system of credit hitherto
operating in the export trade of coal. At a
meeting of exporters and sales agents, held in
Cardiff on July 22, the proposal which was
mooted a few weeks back came up for further
discussion. Terms that have been prevalent
were — net cash at thirty days, or cash against
invoice, less one-half per cent, at the option
of the seller; and the greater part of business
has been on the latter basis. The new terms
will not come into operation until January
1, 1916, so that practically six months’ notice
is given of the change, and they will be — net
cash at fourteen days, or cash against invoice,
less one-half per cent, at the option of the
seller. It was decided by a majority that this
change in conditions of business should be
made, but there were opponents who argued
that this was not the time to make such a dif¬
ference, and that after the war an extension
of credit might he necessary. On the other
hand, it was contended that had fourteen days
instead of thirty, been the practice at the out¬
break of the war, the amount owing then to
Cardiff firms would have been half of what it
was, namely, one and a quarter millions
sterling, and that after the war the giving of
credit would be more risky, the general finan¬
cial position being less stable. It is consid¬
ered that the alteration will advantage larger
firms as against the smaller men, who cannot
command so much capital.
214
THE BLACK DIAMOND
[September 11
General Review.
The Car Shortage Which Is Growing and
a Good Demand for Steam Coal
Strengthen Prices.
The national coal market has developed a
genuinely good tone in the last week. Things
which were only an indication a week or ten
days ago are now developed facts in connec¬
tion with coal and the fall trade can be said to
have gained its stride.
For example, last week there was the first
suggestion of a car shortage. This week
iiearly every market reports that the railroads
are having more or less trouble to move both
the coal and the grain which is now trying
to reach its market. The trouble now, as then,
is more a shortage of locomotives than of cars
and more the congestion of tracks than any¬
thing else. In other words, the carriers are
heginning to reap the harvest for which they
had sown for the last three or four years and
are not now equipped to handle the rush of
business that is being offered.
All summer there has been talk about the
possibility of a labor shortage at the mines.
In some districts this is not felt at all. For
example, in parts of western Pennsylvania and
in Ohio where the miners are residents of long¬
standing, the shortage is not being felt. FIow-
ever, in the newer mining districts which have
been depending on foreign labor, the shortage
is caused by both the return of foreigners to
their countries and the failure to get in new
men. Recently the emigration of Italians has
been extremely heavy. The labor shortage is
curtailing production and this is having an
influence on prices.
In the third place exports of coal in Au¬
gust for the third successive month reached
the attractive figure of one million tons. In¬
dications so far in September are that this will
be the record month of all time in' the matter
of coal exportations. This naturally subtracts
from the volume of coal available for home
consumption.
Reports touching the lake trade do not agree
altogether. One thing seems reasonably ac¬
curate, which is that the upper lake docks
are pretty well crowded with coal, but the
movement to the interior is slow. At the same
time shipments have fallen short about fifteen
per cent as measured by those of last year
and there is a belated movement to try and
make up the shortage. Some districts report
heavier shipments to the lakes, others only a
moderate increase. One thing is reasonablj'
sure, which is, instead of the lake coal move¬
ment having been completed by the end of
September, as has been the case in recent
years, it will continue through until the close
of navigation early in December. This will
likewise subtract from the volume of tonnage
available for the all rail trade.
Another definite influence is the buying of
coal by retailers for delivery to the house¬
holders. The shortage there is quite marked
as compared with other years, amounting as
a mmimum to twenty-five per cent. Coal now
going to retailers is in larger volume than at
any time for several years, and the buying
movement continues despite the fact that prices
are twenty-five cents a ton higher than they
were in July.
The best indication perhaps in the whole
market is the strength of steam coal prices.
Hardly any market but reports a rise of five
cents a ton on mine run coal and in some
places this amounts to as much as fifteen cents
a ton. In the east, slack coal prices are
stronger by far than they have been for a
number of years at this season and there seems
to be a great shortage. This is explained in
that district by the concurrent buying of both
the stoker equipped steam plants and the coke
ovens. In the west the screenings prices are
on the avera.ge twenty-five cents a ton higher
than they were this time a year ago. This
is accounted for in major part by a
better demand recently expressed. ' This is
taken, to mean by those who have studied the
situation broadly, that the improvement in the
business is not dependent altogether on orders
from foreign buyers for war material, but that
we are be^ginniiyg to have something like the
return o^ prosperity to this country.
Bearing upon this_ same point, the coke busi¬
ness has been growing in strength for the last
month. Coke is now quite strong, especially
those sizes which go to the metallurgical in¬
dustry. If one were to judge by the Pitts¬
burgh district alone, he would conclude that
this demand came from the steel mills which
are making war munitions. However, the de¬
mand for coke in the west is equally strong
and there it is not from furnaces, but from
foundries. This means that castings and ma¬
chinery parts are bein.g made, which indicates
an improvement in internal business.
Chicago Market.
The Buying of Domestic Coal Is Fairly
Active and Screenings Are
Unusually Strong.
Office of The Black Diamond,
Chicago, September 9.
The demand for coal is not the same this week
as it was last in character, but in volume it shows
no falling off. Last week the indications were
that the heavier buying of domestic coal was
dictated by the belief that cold weather had come
to stay. This week the demand is quite as heavy,
but the weather is warm, hence the explanation of
the accumulating orders is that the retailers have
begun to store some coal. At any rate, for west¬
ern coal especially the demand is quite active and
the coals are sold up for ten days or two weeks
ahead at the advanced circular price.
The best indication, however, of the market
strength is the price bein,g paid for screenings.
At this time a year ago, medium grade screen¬
ings were selling for thirty cents a ton. They
sold at that price all through September. Today
the same screenings are sellin.g for fifty-five and
sixty cents, the former being the bottom figure.
In several directions the car situation is be¬
coming bothersome and in all districts the supply
is tightening up. The difficulty as heretofore
noted is not mainly the absence of cars, but the
shortage of motive power.
Anthracite demand has picked up considerable
within the week. It was fairly stron.g last week
but it is even better today. The market would
not absorb a flood of coal such as the mines
might be disposed to move now before the east¬
ern car situation gets tight, but it is taking all
offerings without much difficulty since these
offerings are modest.
The smokeless coal situation is a trifle better
than it was. The market is firm because the supply
is not quite equal to the demand. This is so
because the operators have not shipped any free
coal in here to speak of, most of the movement
being on contract. There is a little demand for
spot coal and that makes the market strong.
No one would vouch for the situation if a differ¬
ent policy were adopted by the operators and if
the shipments increased heavily. Lump and egg
in the country is firm at circular price of $2.25.
There is always a very small demand for that
coal in Chicago and just now that seems to be
over stocked so that the prices now in the city
are easy. The prices up to Thursday were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 4.05@4.30 2.00@2.25
Somerset county mine run has been selling to
the trade at prices rangin.g from $1.15 to $1.25.
The demand has been only fair and the market
has been prevented from breaking by keeping
unsold coal off the market. Lump and eg.g are
fairly good in the country and easy in the city
and the prices range all the way from $1.65 in
Chica.go to $2.00 for the better grade coals out¬
side. Prices up to Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine ru.n . $3.20@3.30 $1.1.5®!. 25
Lump and egg . 3.75@4.05 1.75@2.00
There is some talk in an advance in the
Hocking coal price before the end of the month.
The home demand has been rather heavy of late ,
and as known, production there has been cur¬
tailed. Lake trade is beginning to take a little
coal and the western market has been absorbing'
more than has moved in this direction all sum¬
mer. The operators think that prices will be
moved up to $1.60 and a circular to that effect
will be issued. In the meanwhile the prices up
to Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
lJ4->nch lump . $3.15 $1.50
Splint coal situation has not changed materially
within the last week. Some lots of coal got up
to demurrage and had to be sacrificed in order
to move them, but in most cases the minimum is
.$1.15 and the maximum is better than $1.30. The
prices up to Thursday were :
. F. O. B. F. O. B.
Kanav/ha— Chicago. Mines.
154-inch 'ump . $3.05@3.16 $1.15@1.26
Eastern Kentucky coal continues stron.g for
reasons heretofore noted, namely, better demand
at home, prospect of labor trouble all through the
field and a better demand in the western terri¬
tory. The prices up to Thursday were :
, F. O. B. F. O. B.
Eastern Kentucky— Chicago. Mines.
Domestic lump . $3.40@3.90 $1.50@2.00
Kgs . 3.25 1.35
Franklin county operators do not know just
exactly how to explain the situation which has
risen within the last week. A few of the larger
mines are sold up on their domestic lump for
the rest of this month. The others are ten days
ahead. Egg and No. 1 lump coal are not in quite
such a heavy demand, but still the market for
them is strong. Screenings also are firm, the
season of the year considered, at sixty-five to
seventy cents. Many of the operators have to
contend at times with coal sold as Franklin
county at very much less figures than these
quoted, especially on mine run coal. Flowever,
the competition does not seem disturbin.g. The
prices up to Thursday were :
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2inch screenings....
F. O. B. F. O. B.
Chicago. Mines.
$2.80 $1.75
2.80 1.76
2.80 1,75
2.45 1.40
2.15@2.20 1.10@1.16
1.70@1.75 .65®. 70
Now that 'Williamson county operators have
advanced the prices to a figure where the opera¬
tion of the mines is profitable, the old trick of
substituting an off-grade coal for Williamson
county has been resumed. However, the major
operators are getting, according to their own
circular, either $1.60 or $1.75 for their coal and
most of them are sold up on the popular sizes
for at least ten days. The mine capacity has not
been increased recently to a lar.ge extent any¬
way and this has helped to keep the market firm.
The prices up to Thursday were :
Williamson County — Chicago.
Eump . $2.65@2.80
Egg . 2. 65 @2. 80
No. 1 washed . 2.65@2.80
No. 2 washed . 2.45
F. O. B.
Mines.
$1.60@1.75
1.60@1.75
1.75
1.40
Saline county operators have had a .good run
of domestic orders for the last week and as a
result they are comfortable as far as orders are
concerned for almost two weeks. Screenings also
have continued strong, the price being around
seventy to seventy-five cents. The prices up to
Thursday were :
Saline County —
Lump .
Mine run .
Screenings .
1 H-inch lump. . . .
F. p. B. F. O. B.
Chicago. Mines.
$2.80 $1.75
2.20 1.15
1.75@1.80 .70® .75
2.35 1.30
Because Springfield operators are not produc¬
ing and shipping coal unless they have an order
for it, nearly all the markets are bare of free
coal with the double result that prices are firm
and the buyers are more inclined to do business
than at any time in a number of years. Screen¬
ings have strengthened up about a nickel a ton
within the last week, being quoted now firm at
fifty-five to sixty cents. The prices up to Thurs¬
day were :
Springfield —
Lump .
Egg .
Nut .
Mine run .
Screenings ....
F. O. B. F. O. B.
Chicago. Mines.
$2.47 $1.65
2.47 1.66
2.47 1,65
1.87 1.05
1.37@1.42 .55® .60
Steam coals from Knox county are command¬
ing a good sale, the market being active on those
sizes and somewhat better on domestic coal. The
market up to Thursday was :
Knox County —
Lump .
Egg .
Mine run .
Screening.s .
F. O. B. F. O. B.
Chicago. Mines.
$2.37 $1.50
2.37 1.50
1.87 1.05
1.62 .75
Clinton coal is unchanged from figures quoted
last week, but the volume of business is improv-
in.g. The prices up to Thursday were ;
Clinton —
Domestic lump.
Egg .
Nut .
Mine run .
Screenings . . .
F. p. B.
F. 0. B.
Chicago.
Mines.
$2.27
$1.50
2.07
1.36
2.07
1.30
1.87
1.10
1.42
.65
With foundry coke at top notch of demand
and with the sale of domestic coke growing, that
market is in first-class condition. The prices un
to Thursday were :
r ■ Chicago.
Connellsville . $4.85®5.00
By-product, foundry . 4.90®5.1O
By-product, egg and stove . 4.75
By-product, nut . 4.75
Gas house . 3.85®4.00
No. 11]
THE BLACK DIAMOND
215
Pittsburgh Trade.
Big Mining Companies Are Doing a Good
Business on Contract, But
Small Comi>anies Suffer.
Office of The Black Diamond,
1503 Oliver Building,
Pittsburgh, Pa., September 9.
The coal trade this week seems to have suffered
a relapse, and to have resumed the comatose
condition that it has been under for some time.
Warmer weather is partly responsible for this,
but if there is any one thing that stands out more
conspicuously than any other in the business, it
is the feeling of confidence that prevails among
all producers as to the future. However, a dili¬
gent quest for orders, inquiries, or shipments
fails to produce the thing sou.ght.
The big operators are busy on contract deliv¬
eries, but the smaller ones are in a receptive mood
and awaiting industrial demand, other than war
products. In fact, it looks as though rather
too much has been said and written about our
export trade, and too little attention paid to
domesic industrial problems. There has been as
yet no revival of lake shipping — any coal that is
moving in that direction being on old contracts
or on a “chance” market. The fact that there is
a surplus of free coal at the docks contributes
to the depressed condition, and the lack of ship-
pin.g orders.
“Labor Day” and its observance broke into the
week, of course, though at the present time oper¬
ators can spare a day and not complain of its
after effects. At some workings, labor has been
somewhat scarce and advertisements in the daily
prints say that miners are wanted here and there
by the fifties or hundreds. Yet with all the en¬
couraging reports from the steel and iron indus¬
tries, the claim that labor is scarce, and the general
reports of prosperity, it seems very strange that
a more decided showing is not made by the coal
and coke industries. While the market for these
products stands firm, the amount of business doin.g
does not meet the expectations that reports from
other lines would suggest.
Warmer weather again explains the slump in
retail trade, but the fact was evidenced that home
consumption was disappointed in not being able
to fill bins, at mid-summer’s low prices, for there
has been a steady hardening of prices all along
the line.
The only special inquiry that one hears of today
seems to be for slack. One order closed yester¬
day covered 5,000 tons Youghio.gheny gas slack
at seventy-five cents for September delivery, and
it is reported that West Virginia slack is selling
at that figure at lake ports, and scarce. One oper¬
ator remarked this week that unless a better
demand developed for screened coal he would
begin crushing his product to meet the demand for
fine coal.
In coke the shipments from the Connellsville
region to Pittsburgh and points west showed a
slight increase the past week according to rail¬
road reports, and while the demand has not in-
peased as would be expected, it is rumored that
inquiry from several large eastern furnaces is
out and that they are preparing to go into blast
in the near future, and that the demand for fur¬
nace coke will increase accordingly. Coke prices
have not shown the same firmness that coal has,
but operators are still hopeful. Some off brands
were offered in small spot lots, as low as $1.15
and $1.25 the past week for stockiag, but fll.GO
is being quoted for spot delivery on furnace
coke and from that to $1.75, with foundry grades
ranging from $2.25 in some Instances to regular
grades at $3.40 to $2.65.
Pittsburgh News Items.
H. J. Reilly of Minneapolis has been appointed
a minin.g engineer in the Bureau of Mines at
Pittsburgh.
Capt. Alfred Hicks, a Pittsburgh coal operator,
has made a contribution of $20,000 to the Metho¬
dist church of Ducanville, Pa., to be used in the
erection of a new church.
The Union Trust Company, further than or¬
ganizing the “Union Coal & Coke Company,” have
as yet taken no action regarding the operation
of the properties of the Pittsburgh-Buffalo Com¬
pany. There will be a meeting this week to
discuss this proposition, and it is anticipated
that activities will soon develop at the various
mines, under the new ownership, direct or in¬
direct.
Freight rates are always a source of trouble,
no less for coal than other tonnages. Wednes¬
day morning’s Pittsburgh Dispatch says : “Rail
carriers and coal operators of the Pittsburgh
district alike are vitally interested in the efforts
that are now being made to effect an equitable
adjustment of freight rates on the mine outputs
of the several districts constituting this field,
and paricularly in the potential rates both to
the east and west. A noteworthy development
of the situation is the attempt that is being made
by certain interests to constitute the entire Pitts¬
burgh field a single zone of production and es¬
tablish common rates therefrom — a plan which
would' make for simplification of the rate ques¬
tion, but would work to the disadvantage of
certain sections. In a word, an average rate for
the entire field would have the effect of penaliz¬
ing the poorer grades of coal, and should it be
adopted, a scramble for business would ensue
inevitably in which the better coals with a lower
mining rate would have a decided advanta.ge. If,
as has been proposed, a zone system shall be
established, each with a fixed differential operat¬
ing in both directions, individual markets would
ensue automatically, and the differential Would
be the penalty for encroaching on others’ pre¬
serves.”
Twin Cities Trade.
Minneapolis and St. Paul, September 9. — ■
(Special Correspondence.) — This is the week of
the state fair in the Twin Cities, and in times
past when the coal business was on a more active
basis, marked the period when the fall activity
commenced. The reason for this is not difficult
to find. During state fair week, the railroad
passen.ger travel is always enormous ; freight
trains are side-tracked to carry human loads, and
transportation generally gets into a tangle. Im¬
mediately following the state fair the heavy
movement of grain to market commences, and
the tangle in transportation in past years has
lasted until the mid-winter holiday season.
Thirty days a.go it looked as if these conditions
might be expected the present year. Today they
are not quite so certain. Frequent rains have
delayed threshing, and farmers who have threshed
and can do so, are holding back their grain in
preference to marketing it on a declining price
basis. Receipts of wheat and other grains have
been heavy in this market for the past week, but
a great many farmers are now planning to hold
back all their products that they can, believing
the market will show an upward tendency later
if the foreign wars continue. This is more than
likely to lessen the immmediate burden on the
railroads and prolong the period of shipment so
that the grain movement can be handled to bet¬
ter advantage. This is one feature of the situa¬
tion. On the other hand there is a tremendous
crop in the Dakotas and Minnesota, and possibly
even with these advantageous conditions rail
lines will have their troubles later on, which will
assist in putting the coal business back to the
basis that prevailed several years ago.
Demand for coal is somewhat more active,
but there are many dealers in this territory who
are only ordering as they actually need tonnage
to meet current demand. Twin City retail deal¬
ers say that present demand compares very favor¬
ably with a year ago, and with the first nippin.g
frost they anticipate they will have all the busi¬
ness they can handle. Prices on dock products
remain steady. In the St. Paul trade, dock
screenings are being offered to the steam trade
at lower prices, and there is some demoraliza¬
tion in that direction. Some Hocking screenings,
it is reported, have been offered during the week
at $.3.50 for wagon delivery, which is fully 50
cents below the circular price.
In the Indiana and Illinois trade there are no
noteworthy changes. Prices hold to a steady
level, and there is an absence of free coal in
transit. Southern Illinois screenings are the
weakest item, rangin.g at fifty to sixty cents f. o.
b. mines. Demand for domestic sizes is not
heavy.
Prices current on coals sold in the Twin City
market are as follows :
ANTHRACITE.
F. O. B.
Duluth
and
Superior
Grate . $6.60
Egg . 6.86
Stove . 6.8.5
Nut . 7.10
Pea . 6.50
Buckwheat . 4-00
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.40
Splint, dock run . $3.10
Hocking, screened lump and stove. 3.30@3.40
Ilocking, dock run . 3.00
Youghiogheny, gas, lump and stove 3.30@3.40
F. O. B.
Minneapolis
and
St. Paul
$7.80
8.05
8.05
8.30
6.70
6.20
$.1.2G@4.36
$4.06
4.26@4.3G
3.96
4.2G@4.36
Youghiogheny, gas, doek run.... 3.10
Pittsburgh vein, lump . 3.30@3.40
Pittsburgh vein, dock run . 3.00
Pocahontas, screened lump or egg 4.75
Pocahontas, screened lump and
egg mixed . 4.50
Pocahontas, mine-run . 3.25
Cannel, lump . 5.25
Smithing, bulk . 4,25
Srnithing, in 100-lb. sacks . 6.00
Briquets, anthracite . 5. 00
Briquets, smokeless . 5.00
4.06
4.26@4.36
3.96
5.71
6.46
4.21
6.21
5.21
6.96
5.96
5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows :
Southern Illinois chunks . $1.65@1.75 $3.85@3.95
Southern Illinois egg . 1.65@1.75 3.85@3.95
Southern Illinois No. 1 nut . 1.65@1.75 3.85@3.95
Southern Illinois No. 2 nut . 1.25@1.40 3.45@3 60
Southern Illinois No. 3 nut . 1.10@1.25 3.30@3!45
Southern Illinois run of mine... 1.15@1.25 3.35@3.45
Southern Illinois 2-in. screenings .60@ .70 2.80@2.90
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
Birmingham Trade.
Birmingham, Alabama, September 9th.— (Y/ie-
cial Correspondence.) — The domestic trade shows
more strength than for some time past. Sales
agents say that a good buying movement has
set in. More buying by retail yard men from
outside the district is noted. Good buying by
local consumers who buy in carload lots has
begun. One of the large mining companies
has secured sufficient tonnage as to announce
a withdraw'al from open market for domestic
coal indefinitely. It is anticipated that the
distinct tonnage will make up for the shortness
of sales, which has been the state of trade
most of the year. Domestic trade is more
satisfactory than for many months.
The steam trade shows no such progress as
domestic coal, but indications in some direc¬
tions point to better trade being produced
■within the next few months. This is espe¬
cially true in re.gard to the Warrior River
movement. The Tennessee Company has se¬
cured such satisfactory business in this direc¬
tion that with its own supply to meet has
withdrawn from the open market for an in¬
definite period. Most of this tonnage will
be used for bunker business at New Orleans.
Two other large producing companies are
making arrangements to ship down the river.
The DeBardelaben Coal Company announces
that it will be ready by October 1st to ship
bunker coal to New Orleans. The Empire
Coal Company is rapidly perfecting arrange¬
ments to ship bunker and steam coal to both
New Orleans and Mobile. The bunker coal
trade for New Orleans amounts to about 600,-
000 tons per year.
It is an assured fact that the four compa¬
nies using the river will get a large per cent
of this business. It is very probable that at
least half of this trade will be from Alabama
mines, which has not been the case in the
past few years. Coking coal is being mined
with large tonnage showing up. The demand
for this grade of coal is still on the increase,
as two more furnaces are announced to blow
in shortly. The total number of furnaces in
blast is_ now placed at twenty-six, which is
about eighty-five per cent of furnaces of the
district.
Ninety-five per cent of the iron makers of the
district use coke and with every furnace which
is put in blast the demand for coke coal is
augmented.
September prices are:
Bibb County Domestic Coal —
C.iliaba fancy lump .
Cahaba No. 2 lump .
Red Ash Cahaba No. 2 lump....
Red Ash Cahaba lump .
Red Ash steam size .
Jefferson County —
Fancy steam Pratt .
Run of mine Pratt .
Mary Lee lump .
Black Creek —
Fancy steam lump .
Mine run .
Washed nut .
Washed steam .
Jefferson Seam Steam Coal-
Mine run .
Walker County Domestic —
Carbon Hill lump .
Carbon Hill egg .
Horse Creek mine run .
Genuine Corona —
Lump .
Egg . . . . .
Steam sizes .
■Shelby County —
Montevallo domestic prices ranging from $2.75 to $3.00.
Blacksmith coal, washed and screened, per ton, $2 to
$2.25 at mines.
F. O. B.
F. O. B.
Mines.
Birmingham.
$2.75
$3.00
2.50
2.80
2.50
2.80
2.75
3.05
1.20@1.35
Frt. rate 30c
1.75
2.00
1.20@1.25
1.45(ai.50
1.40
1..50@1.80
1.75
2.05
1.35@1.40
Frt. rate 30c
1.76
2.05
1.35@1.60
Frt. rate 30c
1.15@1.25
Frt. rate 30c
1.70
2.00
1.60
2.00
o
o
o
Frt. rate 40c
1.85
2.25
1.75
2.15
1.25@1.35
Frt. rate 40c
216
THE BLACK DIAMOND
[S^eptember 11
Cincinnati Trade.
Rain followed by hot weather has put the coal
business “on the blink.” The rain prevented do¬
mestic delivery for several days. The hot weather
caused the buyers to lose interest in coal. Con¬
sequently, every letter from traveling salesmen
says “the weather is had and business is rotten.”
Still, demand for domestic coal is increasing
slowly, while an increasing number of coal opera¬
tions are being hampered by a scarcity of coal
cars. This scarcity is not felt to such a degree
in the Pocahontas and New River fields as in
tlie splint districts. In the smokeless fields the
cars are rushed to the seaboards with “loads” and
promptly dumped of late, and the empties are
rushed back. This causes the cars on the Nor¬
folk & Western to be easier. The splint opera¬
tors, however, have to scatter their cars in every
direction, making it a slower job to have them
returned. Some of the operations have had to
close down two days in the past week from lack
of cars.
The labor holiday, Monday, curtailed the pro¬
duction somewhat and relieved the market of a
considerable weight. It also decreased demand
for steam coal at the industrial plants. The situ¬
ation was about as broad as it was long. The
net result, however, is believed to be beneficial
to the market. One operation has lost seventy-
live Italian miners in the past two weeks because
of the exodus home to aid in the big war. An¬
other lost thirty. The man who says that the
European war has had no effect on labor at the
mines is misinformed. In the past six weeks
Italian Consul Charles Ginnocchio of this city
has passed the equivalent of an entire regiment
of 1,200 men forward to the front in Italy, most
of the men being drawn from the West Virginia
minin.g region.
Prices are holding well. Cincinnati operators
have been notified that Chicago dealers are hold¬
ing their September schedule well in hand and
they are feeling much better over the situation.
This refers principally to smokeless mine run.
Other grades are holding fairly well and this is
causing a firm market together with the revival
of lake demand in the past few days.
Splint prices are not as stable as the smokeless
prices although there was some evidence last
week that they probably would be stiffer in Sep¬
tember. This is not quite the case for weather
reasons given above, and splint dealers are not
so sanguine as they were last week.
Cincinnati Trade News.
J. R. Thomas, president of the Carbon Fuel
Company, is a visitor in the city this week.
H. P. Jones of the Jones-Parsons Company,
Barnabus, W. Va., was a visitor in the city among
coal men in the past week.
Arnold Gerstell, of Percey Heilner & Son,
stopped off a day at the offices in Cincinnati on
his way home from the mines to Philadelphia.
John Laing, president of the Wyatt Coal Com¬
pany and allied companies, spent several days
this week in the offices of the company here.
At Gallipolis Monday the completion of Lock
No. 20 in the Ohio river, at that city, was cele¬
brated with a parade and addresses by distin¬
guished citizens.
L. H. Stone, Cincinnati representative of Jew¬
ett, Bigelow & Brooks, has made application for
membership in the Chamber of Commerce to be
assigned to the Cincinnati Coal Exchange Branch
of the Chamber.
F. W. Diebel, Detroit representative of the
Pocahontas Coal Sales Company and the Glen
Alum Fuel Company, traveling Michigan for
these companies, was a visitor at headquarters a
few days this week.
William France, representative of the Algoma
Steel Company, of Sault Ste. Marie, Mich., stopped
off in the city a day last week as he was passing
through on his way to New York. He visited
a number of friends in the coal business here.
Herbert Black, vice-president and general man-
a.ger of the Reliance Iron & Coke Company of
this city returned this week from a business visit
to New York City considerably encouraged at
the evidences he saw in the East of returning
business activity.
Quin Morton, president of the Imperial Coal
Company of Charleston, W. Va., and of the Im¬
perial Coal Sales Company of Cincinnati, has
been confined to his room at the Sinton Hotel
for over a week under care of a physician. He
w’as taken ill Monday, August 30, of a compli¬
cation of troubles brought on by a cold. He
has been able at times to dictate letters to his
stenographer and even to step outside the hotel
until lately his physician has advised him to
remain in his room. It is hoped and expected that
he will be able to return home in a few days.
Paul L. James, formerly representing the C. G.
Blake Company in the northwest, has become
connected with the Pocahontas Coal Sales Com¬
pany and the Glen Alum Fuel Company as south¬
ern representative. Mr. James is a resident of
Virginia and this arrangement gives him head¬
quarters at home and territory not far distant.
Cincinnati officials of the Norfolk & Western
Railway have been notified this week of a record
coal tonnage dumped at Norfolk. In the twenty
hours of one working day 45,560 tons were loaded.
In August shipments from Hampton Roads were
1,561,284 tons of which the N. & W. furnished
790,860 tons, the C. & O, 467,147 tons and the
Virginian 303,277 tons.
H. D. Davis has resigned his position of travel¬
ing salesman with the Blue Ash Coal Company,
and the company has abandoned the northern
territory in which Mr. Davis travelled, furnish-
in.g their patrons their coal through jobbers in
that territory hereafter. Mr. Davis was formerly
with the James Shanklin Company, and prior to
that with Mr. Hinsch of the Hinsch-Briscoe
Company.
Captain Charles J. Menges has gone from this
city to Galveston to take the contract awarded
him for replacing sea-going vessels wrecked and
thrown inland by the great tidal wave of a few
weeks ago, some of them being landed nearly a
mile inland in the city. The Monon.gahela River
Consolidated Coal & Coke Co., steamers and
rigging are used by Captain Menges in the work.
Captain Menges was formerly harbor master in
Cincinnati for the Monongahela Company. Re¬
cently he was transferred to a similar position
in New Orleans for the company, but was visit¬
ing in this city when called to Galveston.
The shipments of coal, in and out, as shown
by the books of the Cincinnati Chamber of Com¬
merce, were much heavier in August this year
than they were in the month last year. Receipts
for the months compared were: August, 1915 —
Bituminous coal, rail 1,035,156 tons, river 259,701,
total 1,294,857 tons ; anthracite, 528 tons ; coke,
7,554 tons. August, 1914 — Bituminous, rail 446,974
tons, river 76,591 tons, total 523,565 tons; anthra¬
cite, 74 tons; coke, 4,865 tons. Outshipments
were: August, 1915 — Bituminous, rail 1,003,228,
river 13,916, total 1,017,144 tons; anthracite, 33
tons ; coke 3,334 tons. August, 1914 — Bituminous*
rail 277,671 tons, river 15,539 tons, total 293,210
tons ; anthracite, 248 tons ; coke, 2,306 tons. The
river was in much better shape for shipments
during August this year than in the month last
year. Kanawha shipments this year were re¬
stricted for about 3 weeks by the closing and
repair of a lock in the river below Charleston.
Detroit Trade.
Detroit, Mich., September 9. — (Special Cor¬
respondence.) — Conditions in the Detroit mar¬
ket continue generally favorable. Shippers
seem confident that the improvement which
has been a development of the last few weeks
in the steam coal trade is likely to gain fur¬
ther breadth, bringing a gratifying expansion
of business, unless some setback, now un¬
foreseen, becomes a factor in the situation.
Most of the automobile plants and large
industrial establishments of the city are re¬
ported to be showing a greater degree of in¬
terest in the acquisition of coal than has lieen
apparent for some montlis. There is a more
active inquiry apparently developing in inter¬
ior towns of the state, through which the dis¬
tribution of coal is made to agricultural sec¬
tions. This is attributed in part to the pro¬
gress of the threshing season on the farms
and in part to a slightly improved condition
of business in the smaller towns, which are
sliaring in the prosperity due to good crop
yield in the surrounding country.
Though domestic coal is still rather difficult
to sell, some of the shippers say indications
are not lacking that a larger volume of buy¬
ing will develop soon. Weather conditions,
which always are an important factor in the
local market, have been conducive to at least
a moderate use of fuel to offset the clinging
dampness which attends protracted rainfall
and periods when the atmosphere is heavily
charged with humidity. In some homes a
small amount of coal remained from last win¬
ter’s supply but tbe buying for household use
indicates the necessity of obtaining a new
supply in many others.
With the expiration of the final discount
period, orders for anthracite are seemingly
reduced. Distribution from the retail yards
is proceeding in larger volume to household¬
ers who will save fifty cents a ton on stove
aiul egg sizes delivered before October 1st.
It is expected further orders in some volume
will come later as the necessity arises to re¬
plenish the stock of the retailers. The gov¬
ernment’s statistical report of traffic through
the St. Marys river waterways in August
shows a heavy drop in movement of both hard
and soft coal over the lake route, in August.
Hard coal shipments through the canals were
279,948 tons or 13,111 less than in the similar
month last year when shipments were 293,-
059 tons against 283,847 in August, 1913.
Soft coal shipments aggregated 1,771,012 short
tons for the month, a loss of 312,769 tons com¬
pared with the month of 1914, when similar
shipments amounted to 2,083,781 tons. In
August, 1913, the movement was 2,566,320
tons.
Prices in the local market on mine ship¬
ment orders are as follows:
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
2.60
Mine run .
2.30
Slack .
2.1502.25
West Virginia Splint —
lour-inch lump .
... 1.00@1.2.5
1.40 01.05
Two-inch lump .
2.1502.30
Three-quarter .
2.50
Mine run .
... .90@1.00
2.3002.40
Nut, pea and slack .
. . . .4.5@ .50
1.85 01.90
Smokeless —
Lump and egg .
2.25
3.85
Nut .
3.20
Slack .
Open
Mine run .
2.85
Kentucky Splint —
Lump .
$3.0003.15
I'-gg .
2.6502.80
Nut, pea and sl.ick .
..50
1.90
Fairmount —
1 hi’ee-:iuarter steam limp ...
. . . .750 .85
2.1502.25
Mine run .
2.0002.10
Slack .
Open
Hocking Valley- —
Shaker three-inch lump .
1.50
2.65
Shaker egg and nut .
1.15
2.30
Domestic lump .
1.35
2.50
Three-quarter lump .
... 1.25@1.30
2.4002.45
Mine run .
. . . 1.00@1.10
2.1502.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
1.15
2.30
Mine run .
1.05
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
... 2.2502.50
3.4003.65
Cambridge —
Three-quarter lump .
1.20
2.35
Mine run .
1.10
2.25
Pomeroy —
Two and three-inch lump .
1.60
2.75
Egg .
1.35
2.50
slack .
Open
J. H. Cummiskey, president of the Ohio &
Michigan Coal Company, of Detroit, return¬
ing from a week spent in Ohio mining dis¬
tricts, says the shortage of mine labor and
lack of adequate car supply are creating
serious prolilems for many of the operators
in West Virginia.
Omaha Trade.
Omaha, Nebr., September 9. — (Special Corre¬
spondence.) — The coal business, as well as gen¬
eral business conditions, has been quiet for the
past week. Buyers have not been ordering very
heavy since the first of the month; the condition
apparently caused by advance in prices effective
September 1st.
There is very little transit coal being offered
and the prices are rather firm on the following
market :
Mines Omaha
Southern Kansas —
Nut .
. $ 1.85
$ 3.2(1
2.70
Slack .
. 1.35
I'ranklin County —
Lump .
Egg .
Nut .
. 1.6001.75
. 1.6001.75
. 1.6001.75
3.9004.1.5
3.9004.1.5.
3.9004.15
Williamson County —
Tmmp . .
Egg .
. 1.4001.50
. 1.4001.50
3.8003.90
3.8003.90
Rock Springs —
. 2.15
5.85
Nut ‘ .
. l.(>0
5.35
.Arkansas Anthracite —
. 3.70
6.60
Broken sizes .
. 3.95
6.85
C. W. Russ, of Columbus, and Howard Young,
of Yellow Springs, O., liave taken travelin.g posi¬
tions with tlie W. J. Hamilton Coal & Coke Com¬
pany, Columbus.
No. 11]
THE BLACK DIAMOND
217
Cleveland Trade.
Cleveland, Ohio, September 9. — (Special
Correspondence.) — It is possible that the pro¬
duction from the eastern Ohio field is increas¬
ing slightly with the advance of the season,
but the difference is not particularly notice¬
able either in the steam or lake trade. Al¬
though some coal men feel that the lake ship¬
ments for the season will be very light, others
are of the opinion that the aggregate will be
somewhat of a surprise at the close of naviga¬
tions this fall. They say that the loading ma¬
chines are making better records than most
people believe and that the shipments are bet¬
ter than would have been expected some time
ago.
Coal sold for lake shipment has run as low
as $1 per ton the past week. This is rather
discouraging, as there is a very small margin
in it, but at the same time it keeps the mines
going and that is something in view of the
conditions that prevail among the miners in
the eastern Ohio district. In order to really
make money the price should be quite a little
above that figure.
There has been but little improvement in
the demand for steam coal during the past
week, either for local or outside consumption,
Imt at the same time the supply of slack has
been sufficiently low to hold prices fairly
firm. No. 8 or eastern Ohio slack has sold at
sixty-five cents at the mine, which means
$1.55 f. o. b. in this market. But little Pitts¬
burgh slack has found its way to the market
during the past few days, but it was quoted
occasionally at fifty-five cents at the mines or
$1.55 here, which is about the same figure that
prevailed last week.
No. 8 lump coal for domestic purposes was
quoted at $1.25 at the mines, $1.05 for three-
quarters and $1 for mine run. An increased
demand from outside retailers has resulted
in stiffening up the market to some extent in
this coal.
Railroads are said to be taking less coal
than could be expected, in view of the pros¬
perity that seems to have struck the steel and
iron market. Prices of railroad coal have
been beaten down until there is little profit
in the business at present.
Pocahontas coals seemingly have been a
little off the past week. Offers are said to
have been made in the market at $3.45 for lump
and $2.70 for run of mine. The freight rate
is $1.45, which leaves the prices at the mines
$2 and $1.25 respectively.
Massillon coal has retained its strength
through the week at the circular prices. Un¬
der the present freight rates West Virginia
coals have made some inroads on the Mas¬
sillon product, but at the same time it seems
to be holding its own against them.
Little Fairmont coal has been offered in the
market during the past week and any figure
quoted would hardly indicate a real selling
price.
There has been a fair demand for anthracite
coals during the past week, as a result of the
endeavor of retailers to take care of their win¬
ter needs and the more rapid deliveries that
have been made during the past two weeks.
The circular prices for anthracite here are
the same as last year: Chestnut, $G.10; egg
and stove, $5.85, and grate, $5.60, f. o. b. Buf¬
falo. There are indications of a much stronger
demand for anthracite later in the fall.
Goshen coal has been in good demand
through the week with quotations of $1.65 for
three-inch lump, $1.50 for 1^-inch and $1.45
for three-quarters, f. o. b. tlie mines.
Cleveland News Notes.
C. L. Ayers of the C. L. Ayers Coal Com¬
pany is confined to his home by illness.
George D. Rowland, sales manager of the
Richland Coal Company, was in the city
W ednesday.
The Bakewell Coal Company has closed its
Cleveland office for the present. George Gray
was the local manager.
E. W. Watson, of the Rosebud Fuel Com¬
pany, Fairmont, W. Va., called on the deal¬
ers here early this week.
Among the well-known coal men in the city
during the past week was Charles A. Bygate
of the Theiss-Bygate Company, of Pittsburgh.
A committee of miners and operators held
a meeting at the Hollenden Hotel Wednesday
to discuss a number of complaints brought !)y
the miners.
Duluth Trade.
Duluth, Minn., September 9. — (Special Corre¬
spondence.) — That there will soon be an advance
of at least ten cents a ton on bituminous coal is
the feeling among coal men here. It is claimed
that the only reason that prevents such an advance
at this time is the fact that the docks here are
crowded with coal now and that receipts, of late,
have been fairly liberal. It is claimed, however,
that this condition is sure to change before lon.g.
The rush of iron ore to Lake Erie ports, which
has, seemingly, started in earnest and will con¬
tinue from now on until the end of the season,
is bound to have an effect on the shipping of
coal from below. The cars that are used to
carry ore from the Lake Erie ports to the fur¬
naces are the cars that are used to bring coal
from the mines on the return trip to Lake Erie:
and it has always been the rule to give ore the
preference; that is, when an ore rush is on, not
much time is wasted in loading cars with coal
for the return trip, empties being rushed back
to the lake for more ore. As it is practically
certain that iron ore will be sent down the lakes
in large (piantities for the rest of the season,
it is not believed that coal is going to have much
of a show.
.Another thing that is expected to militate
against much coal being shipped for the rest of
the season is the fact that a good deal of diffi
culty is being experienced in .getting men to mine
the coal. Thousands of the coal mine workers
have been taken back to Europe to enter the
armies of their respective countries, and this
leaves a distinct shortage of mining help.
Consequently, it is pointed out, the big stock
of coal on hand at this distrilmting point is none
too big in view of tbe probabilities in the matter
of supply and demand during the comiag fall and
season.
d'he demand for soft coal is on the rapid in¬
crease at present, all of the docks being busy
shipping about as fast as they can get cars, and
it is expected that by the time that the cause
of the present heavy demand — threshing — will
have abated, the regular winter and industrial
demand will have resumed normal proportions
and the tax on the suppl\' will continue.
The demand for hard coal is growin.g rather
rapidly for this time of year. It was not ex¬
pected to develop so rapidly or so early, but
the coal shippers here say that orders are be¬
ginning to pile in w'ith unwonted frequency and
size. The prosperity now felt in the entire north¬
west, and the general belief in the certainty of
good times as a result of the big crop, are taken
as the reasons for this activity.
Upper Lake News.
The railroads have been buying some coal
during the past week, but not as much as was
e.xpected. It was supposed that, owing to the
heavy crops this year, the roads would buy a
good deal of storage coal for western points using
the empties going out to take care of the crops
in carrying coal to the various storage points.
But they have not done so. Their buying is of
the hand-to-mouth plan. Of course they may
change their tactics later, but there is no indica¬
tion or su.ggestion of a different method of laying
in a supply.
'I'here was a short-lived strike on the Island
Creek, Carnegie and Great Lakes coal docks in
Superior on Tuesday. The men walked out when
their demands for a return to last fall’s wa.ge
scale of twenty-seven and one-half cents an hour
was met with a proposal to give twenty-five cents
instead of the twenty-two and one-half cents in
force. The matter was soon adjusted, the twent\ -
seven and one-half cents scale bein.g restored
and all docks in Duluth and Superior acquiescing.
The twenty-two and one-half cent scale was put
in force last December when the movement of
coal out of here dropped off.
Coal unloading fell off at I'^ort William and
Port Arthur, Out., during the last week in
August. Only six cargoes were unloaded against
nine during the previous week. Five were bitum¬
inous and one anthracite. Four were in Canadian
bottoms and two in American. At the first of
the week, five cargoes, four of them bituminous,
were reported en route. Car shipments from
the Canadian Head of the Lakes are reported to
be on the steady increase. Every car available
is bein.g rushed west to bring forward the new
cro]) and they are being given loads wherever
possible. The stocks on the docks at Fort Wil¬
liam and Port Arthur are heavy and shipments
will have to get considerably above normal before
any serious depletion will show.
Among the coal dock operators who attended
the monthly meetin.g of the Northwestern Coal
Dock Operators’ Association last week, many of
the men from outside of this city stayed over
several days and attended to business for their
respective companies, and also visited among
themselves and discussed the coal situation and
its probabilities of the near future pretty thor¬
oughly. These were: J. L. McMahon of Mil¬
waukee and S. H. Robbins of Cleveland, North¬
ern Coal & Dock Company; R. S, McVeigh of
Cincinnati, Island Creek Coal Company; E. P.
Merrill and W. H. Groverman of Minneapolis,
Island Creek Coal Company; D. S. Austin of
Milwaukee, Milwaukee Western Fuel Company;
W. W. Broughton of Minneapolis, northwest
Iiresident of the Pittsburgh Coal Company; A. H.
Roehl of Minneapolis, auditor of the Pittsburgh
Coal Company; William Collins of Cleveland,
M. A. Hanna Company; H. E. Smith of St. Paul,
M. A. Hanna Company; Joel Stoneroad of Pitts¬
burgh, Carne.gie Company; C. P. White of Minne¬
apolis, Carnegie Company ; Peter Reiss of She¬
boygan, Wis., Reiss Coal Company, and Messrs.
Teller and Simpson of Milwaukee, Milwaukee
Western Fuel Company.
New Orleans Coal Rates.
Local industrial men have not given up hope
for the southeastern railroads’ determination
not to advance the rates on coal to New Or¬
leans at this time, even though permission to
do so has been given by the interstate com¬
merce commission. Several days ago the
’Frisco lines announced that tariffs containing
the new rates would go into effect October
1st. Tuesday it was announced that a meet¬
ing was to be held in New Orleans in a few
days when an effort would be made by the
railroads and shippers to confine the advance
of 15 cents a ton to coal for land delivery
only, and not to bunker coal. “If the rail¬
roads find it to their interests not to raise the
rates on coal for water delivery,’’ declared a
prominent railroad man “then they will hardly
raise the rates for land delivery at New Or¬
leans. The recent decision of the Interstate
Commerce Commission in this case specifically
slated that no discrimination could be made
by the railroads between coal for land delivery
and coal for water delivery. The commission
stated that the railroads had no right to apply
rates differently to the same point according
to the use that would be made of the coal.
■So the commission, itself, states that the rail¬
roads may not advance rates on coal for land
delivery and at the same time leave untouched
the rates on coal for water delivery. The
hearing of the coal case brought out the fact
that of the approximately 11,000,000 tons of
bunker coal shipped to New Orleans every
year, only about twenty per cent of the busi¬
ness was handled by the railroads. This
twenty per cent is shipped from Alabama mines
and the eighty per cent is shipped via water
from the Pittslnirgh district. If the railroads
add fifteen cents a ton to the $1.25 rate they
will lose all of a good part of the twenty per
cent bunker coal that they now carry to New
Orleans every year. They will also stand
chances of losing some of the land delivery
business that is now theirs. Since they cannot
raise the rate for one without raising it for
the other, I have hopes that possibly the rate
may not be raised at all at this time.”
According to the “Times of Argentina,” the
steamship Monkshaven, which recently arrived
with a cargo of coal from the LJnited States for
the Great Southern Railway Company, discharged
5,033 tons in a period of about five and one-haF
days, or 120 tons per hour. This is considered
exceptional. The largest day’s discharge was
1,161 tons. In making this discharge four electric
cranes were used.
The Ibiited States Consul at Seville, Spain,
states that a concession has been .granted to the
Cadiz agent of the Sociedad Anonimna Depositos
h'lotentas, the Portuguese Carbones of Barcelona,
to install in that port floating coal depots for lId’
sale and delivery of coal direct to merchants and
ships. The concession granted is not to con¬
stitute a monopoly, and no ti.xed period is cov¬
ered by the iiermit, and the Spanish Minister
reserves the right to grant similar concessions to
other parties.
218
THE BLACK DIAMOND
[September 11
New York Trade.
Anthracite Trade Very Quiet Following
Holiday — Bituminous Contract
Movement Good.
Office of The Black Diamond,
New York, September 9.
The past week is a poor one to judge a market
by. Production, distribution and prices were all
disorganized by the observance of Labor Day
holidays, and at this writing the trade is still
feeling the effect of practically three days’ closing
of offices. Up to about Thursday of last week
the anthracite trade in the east had shown ma¬
terial improvement, but since that time no new
business of worth has been consummated. In¬
quiries lag, but fortunately for the trade a good
number of shipping orders remained unfilled
and this week finds the shippers .generally send¬
ing forward tonnage to complete orders accumu¬
lated during the last of August.
The cool weather that prevailed up to the
latter part of last week had stimulated the anthra¬
cite buying to a small extent, but the very high
temperatures prevailin.g this week have brought
about, no doubt, considerable delay in buying.
Last week it was noticeable in most every
quarter that retail dealers were doing quite a
business in making deliveries to consumers. This
was taken as an indication that consumers had
become concerned about fall and winter needs
and had come into the market to take supplies
while conditions were most favorable. This week
retail dealers report that this interest has slumped
very materially, and that they anticipate that it
will not be revived until the weather changes.
The official production figures for the month
of August have not as yet been announced.
August was the third of a very low anthracite
production, and while it shows some im¬
provement over July, it is estimated that the total
output for the first ei.ght months of this year is
nearly two million tons less than that _ for the
first eight months of last year. Authorities point
out that this will mean a very radical shortage
of anthracite at certain points later in the year,
and that due to the already noticeable shortage
of labor in the mining regions, and the increased
demand for railroad equipment for other indus¬
tries, that it will be impossible for the mining
companies to produce or the transportation com¬
panies to ship, to the markets as fast as may be
necessary later on in the year. In Au.gust, 1914,
shipments of anthracite reached 5,483,743 tons.
Some coal was stocked during the summer months
but it is not believed that the tonnage now in
store is in sufficient volume to take care of the
demands that will be made on the storage piles
later on. If we have anything like a normal
winter, anthracite consumption will show a ma¬
terial increase over the consumption of last
winter, due largely to the better financial situa¬
tion that consumers find themselves in at this
time.
The steam size situation shows but little change
from our report of last week. Good .grades of
rice and barley are still very scarce, and at the
New York tidewater ports many cargoes of sur¬
plus coals that were in the market in the last
ten days have been cleared up. At the moment
there is some unsold coal loaded in boats that
may be obtained at considerable concessions from
the circular, the aggregate tonnage bein.g very
small. It is noticed that there is not so much
pea coal offering as was formerly the case, and
on good grades of this coal an advance of ten to
twenty-five cents per ton is obtainable.
In the matter of concessions on prepared coals,
some sales of egg have been made during the
past week by individuals at the May circular.
However, it is not believed that much coal is
being sold under twenty cents, and in exceptional
cases thirty cents under the full winter circular
that went into effect on September 1st.
On September 1st, the full winter price list
went into effect on anthracite, tidewater prides
being about as follows :
Upper Lower
Ports. Ports.
Broken . $5.10 $5.00
Egg . 5.35 6.25
Stove . 5.35 6.25
Chestnut . 6.60 6.50
Pea . 3.55 3.45
Special .grades of Red Ash and other high
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures
The Bituminous Situation.
The bituminous trade has also been interrupted
by the observance of the Labor Day holiday.
The demand has not materially increased, but
contract requirements are growing from week
to week, and shippers who have practically all
their tonnage under contract, have just about all
they can do. As has already been pointed out,
most of the eastern roads are putting coal into
stock piles at convenient points alon.g their lines,
in anticipation of an acute labor and car short¬
age later on in the fall. While coal men are
doing more or less talk about labor troubles
anticipated to develop on April 1st next, when
the present wage agreement between the bitumin¬
ous operators and the United Mine Workers ex¬
pires, so far consumers have been but little
influenced by this talk. However, some of them
are becoming alarmed over the fact that the
mines have lost a lot of labor, and that the rail¬
roads are goin.g to be crippled for equipment
and, perhaps, locomotive power later on. These
conditions, no doubt, account for the fact that
certain consumers are calling for larger ship¬
ments on contract.
In the matter of prices, no improvement is to
be found. Shippers in the central Pennsylvania
fields especially seem to be in position to keep
the tidewater markets supplied with free coals,
the average grades to be found in most of the
tidewater ports at about the range of prices that
prevailed for the past month. There is much less
pressure on the part of .gas coal shippers to make
sales as formerly, and it is pointed out that some
of these shippers have been able to contract for
practically all of the coal that they can ship. Con¬
sequently, slack prices are firmer, and many
shippers are entirely out of the market of this
grade.
The export movement continues heavy, August
exports through Philadelphia, Baltimore and
Hampton Roads showing around 1,000,000 tons,
or about 100,000 tons less than exports for the
month of July. On the other hand, bunker re¬
quirements continue very good, and will show
a very handsome increase for the present month.
New York harbor prices are practically un¬
changed, Inferior grades selling at $2.40 up; good
grades of Pennsylvania from $2.60 to $2.75.
Choice grades from $2.80 to $2.90.
The Vessel Situation.
The vessel situation is unchanged. There ap¬
pears to be ample tonnage at the moment for such
coal as is moving coastwise. Most of this busi¬
ness is being done under time charter. More
activity for small vessels for off-shore is pre¬
dicted. Rates for off-shore trade remain un-
chan,ged.
We quote current rates on freight as follows:
From Hampton Roads to Boston, eighty to
ninety cents is about the range; to Portland
and points east of Boston, from ninety cents to
$1. To sound ports, eighty to eighty-five cents.
From Philadelphia to New England points, about
five cents under the Hampton Roads rates.
From New York to Bridgeport or New Haven,
thirty cents; to New London and Providence,
forty cents; to Fall River and New Bedford,
forty-five cents ; to Boston, fifty-five to sixty
cents.
Current quotations on bituminous coal in spot
lots are:
F. o. B.
Somerset County — Harbor.
Best grades . $2.85
Medium grades . 2.60
Ordinary . 2.55
Cambria County —
Best Miller vein . 3.00
Medium grades . 2.55
Cheaper grades . 2.60
Clearfield County —
Best grade . 3.00
Ordinary grades . 2.50
Indiana County —
Best grade . 2.80
Medium grade . 2.50
Maryland —
Georges Creek big vein . 3.15
West Virginia Splint —
Ordinary grades . ;.... 2.40
Best gas, J^-inch lump . 2.65
Best grade, run of mine . 2.65
Gas slack .
F. O. B.
Mines.
$1.30
1.10
1.00
1.40
1.15
1.05
1.36
1.00
1.26
.95
1.65
.75
1.10
.90
.60@.76
New York Trade Briefs.
Jason Holbrook of the Empire Coal Company
of Montreal, Canada, was a recent visitor to
New York.
Frank Ellison of C. G. Blake & Company of
Cincinnati was a recent visitor to the eastern
office of his company.
Colonel R. B. Baker, president of the Sterling
Coal Company, No. 29 Broadway, returned late
last week from a vacation of two weeks spent
at Bretton Woods.
O. W. Gardner, general sales agent of the
Chesapeake & Ohio Coal & Coke Company, with
headquarters at Norfolk, Va., was a recent visitor
to the New York offices.
Howard S. Bowns of Pattison & Bowns, No. 1
Broadway, leaves on the tenth for Canada, where
he will spend several weeks fishing. Mr. Bowns
will make the trip to Canada in his automobile.
T. S. Shoemaker, president of the Shoemaker
Coal Minin.g Company of Philadelphia, was in
New York on Tuesday en route home from Nan¬
tucket, Mass., where he had spent a vacation
with his family.
The New York Coal Trade Golf Association
will hold a one-day tournament on Tuesday,
September 14. At this writing two Long Island
courses were under consideration, the Oakland
and Nassau clubs having extended invitations to
use their courses.
The Central Purchasing Committee of New
York City announce that proposals may Fe se¬
cured in room 1226 Municipal Building for 3,000
tons of buckwheat coal No. 1 for Bellevue and
allied hospitals. Bids will be opened at twelve
noon, Friday, September 17, in room 1230, Munci-
pal Building.
C. E. Bockus, president of the Clinchfield Coal
Corporation, was up from his Dante, Virginia,
headquarters on Monday. It is understood that
business in the southeast is showing some im¬
provement, the Clinchfield, in August, surpass¬
ing former records as to production, every ton
of which went into actual distribution and not
into stock.
A newspaper dispatch from Mahanoy Plane,
Pa., states that the Stanton breaker of the Ma-
deria. Hill & Co. at that place will be abandoned
and that in the future all coal will be prepared
for market through the new modern breaker
known as the Lawrence. New workings are being
opened up and the tonnage will be largely in¬
creased within a few years’ time.
Lucien Hill, New York manager of the Mer¬
chants Coal Company of Pennsylvania, with oper¬
ations at Boswell, Somerset county, was advised
early this week that the Orenda mine at Bos¬
well, which was closed down on last Tuesday
due to an explosion, had reopened on Monday,
no damage^ whatever bein.g done to the mine by
the explosion. Both the coroners’ inquest and
the State Mine Inspector’s report state that the
accident was not due to carelessness on the part
of the mining company.
Thomas Stokes, who was one of the pioneers
in the retail coal business in Manhattan, and
head of the firm of Thomas Stokes & Sons, Inc.,
with plants at several points on the west side,
died on Tuesday night of this week at his home
at No. 122 West 77th street. He was in his
seventy-sixth year. , Mr. Stokes was born in
Ireland and came to this country with his parents
when only five years old. He had been in the
coal business in New York for just a little over
half a century. He was a director of the West
Side bank, a trustee of the North River Savings
bank and interested in other enterprises. He is
survived by three sons and four daughters.
The Norfolk & Western Railway .is said to
have made a new world’s record for rapid load¬
ing of coal over their Lamberts Point pier at
Norfolk on Tuesday of last week, when 45,560
tons were dumped in twenty working hours.
The day’s shipments consisted of 931 cars, which
is equivalent to seventeen solid trains of fifty-
five cars each, the average limit for a coal train.
To load this amount of coal, it was necessary to
dump a car of coal on an average of every one
and a quarter minutes. In this connection it is
interesting to note that 1,561,284 tons of coal
were dumped over the Hampton Roads piers in
August. Of this, the Norfolk & Western dumped
790,860 tons; the Chesapeake & Onio, 467,147
tons, and the Virginian, 303,277 tons.
New York coal men, especially those inter¬
ested in exporting, were very much interested in
a publication in the financial column of The Sun,
issue of September 3rd, to the effect that it
was reported that the Virginia Iron, Coal & Coke
Company, with headquarters at Roanoke, Va.,
had closed a contract with the British govern¬
ment for the delivery of 500,000 tons of bitumin¬
ous coal at a price of $4.85 a ton f. o. b. So
far no confirmation has come from any of the
officers of the Virginian company as to its secur-
in.g of any foreign contract. In any event, it is
not at all likely that they have been able to
secure $4.85 per ton f. o. b., for Pocahontas and
New River coals, loaded from the same piers
that are available, at $2.85.
No. 11]
THE BLACK DIAMOND
219
Philadelphia Trade.
Bituminous Trade Shows a Lull Follow¬
ing the Recent Spurt, but the An¬
thracite Market Is Strong.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, September 9.
Like a gasoline engine that has not been used
for some time and wants to slip back to its
former state of quietude, the local coal trade,
after three or four weeks of good going, took
a notion to lay off for a few days. The lull was
partially laid to the holiday at the beginning of
the week and partially to the high pressure
at which coal has been moving. The foregoing
of course applies to the soft coal trade. In
hard coal lines, things have been straightening
out and better prospects are brightening in rapid
succession.
The bituminous trade has met the little slack¬
ness with a different spirit than governed for
more than a year. Instead ol taking the lull as
an evidence that the trade was slipping back
into a rut there was a determined effort to get
things moving and some good blocks of coal were
disposed of about mid-week. Four cardinal argu¬
ments have been advanced by the local trade as
to the cause for manufacturers and in fact
all soft coal consumers to get busy, (a) That
there is a labor shortage at the present time at
the mines and this in the face of the fact that
few are working near to capacity, (b) That al¬
ready the B. & O. and the Pennsylvania railroads
have been forced to declare a shortage of cars,
and this before September was well under way
— an indication of what must be expected when
coal starts moving in volume, (c) A demand
for export coal that should take up the over¬
plus of production that has been a feature of
worriment. (d) Increased industrial activity that
is using and demanding more coal each week.
To this might be added the prospect of a cold,
hard winter that weather sharps aver is on the
way but this is not a tangible condition and the
other concrete arguments should suffice.
Prices have been ruling about the same as was
quoted in this journal of last week. No conces¬
sions have been made on spot sales and con¬
tracts are not being sought and are gingerly con¬
sidered by the companies that two months ago
were only too willing to spend shoe leather in
garnering them.
The pier business, because of Labor Day being
included in the week, was not in as heavy vol¬
ume as the preceding week but with several boats
ready for coaling and in the harbor, the figures
for the current week will go considerably up.
August figures on anthracite and bituminous
shipments show that 164,9.52 tons were shipped
from the various terminals compared with 21,070
tons that went for export during the same period
of 1914.
Anthracite Situation.
With a great number of the mines in the
regions on full time and with the general busi¬
ness showing improvement from outside sources
there has been a general clarification of the
stagnation that had been the lot of the anthracite
people for a couple of months. A general bet¬
terment has been noted in all of the sizes and
chestnut and pea, which were the weakest of
the list for some little time, have regained their
footing.
Shipments to New England ports have in¬
creased in volume during the past week and the
general indication from the inquiries which have
been received show that the end of this month
will see hard coal moving in its accustomed vol¬
ume to the upper ocean ports.
Locally there has been a better inquiry from
the retailers, and, while most of the yards .are
carrying a fairly large stock, orders have been
slowing comine in that are eating into the piles.
Serious consideration of the situation that has
been a thorn in the side of the retailers who
would put their business on a profitable Jiasis
and stick to prices that are productive of return,
is being given. Price cutters who demoralized
trade last spring and summer are, it is said,
laying their lines for another bid for publicity
and business. Quotation for local delivery, egg,
$7; Stove, $7.25; Nut, $7.50, and Pea, $5.25, are
being cut twenty-five to seventy-five cents on the
ton by some of the cutters. It is even hinted
that these may be cut even more in the drive
that is being prepared by those who are not
inclined to make a standard price for local de¬
liveries.
Philadelphia Trade Notes.
J. A. Boucher of the Beaver Run Coal Com¬
pany, Beaverdale, Pa., was in Philadelphia on
Tuesday while on his way to a trip to New
York.
R. Y. Brown, general manager of the Mor¬
rell ville Coal Company of Johnstown, Pa., was
here on business for a couple of days, the latter
part of last week.
W. J. Chapman, the veteran retailer and whole¬
saler at Baltimore, dropped in to see a few of
his friends in this city while passing through
on his way to the sea shore.
Fredric Land.street of the Punxsutawney Coal
Company left Tuesday for a business trip to
New England cities and will stop off at New
York both going and returning.
Jil. D. Kelley, president, and H. P. Kelley, vice-
president of the Vulcan Mining Company, at
Snowshoe, Pa., were at their office this week,
looking over the eastern situation.
Alla G. Bodine. who formerly was connected
with the Quemahoning Coal Company, dropped
in on friends this week. He was looking brown
as a berry from a summer spent on the Jersey
Coast.
H. P. Jordan, whose father is an operator in
the Keyser, W. Va., fields, is now connected with
the sales department of the Emmons Coal Min¬
ing Company. His territory will be the city
and vicinity.
W. E. Macurda, of the Garfield & Procter Coal
Company of Boston, visited his friends in the
anthracite trade during the latter part of last
week. He had just concluded a visit to the
hard coal fields.
Kirkpatrick & Black, retailers, suffered a con¬
siderable loss on Saturday last when their stables
at Twenty-fifth and Federal streets burned to
the ground. Several head of horses were caught
in the flames.
Murray B. Cortright, former president of the
Commercial Coal Mining Company, has joined
the forces of the Cortright Coal Company and
will be connected with the steam coal depart¬
ment of that concern.
R. Mellon, who was formerly connected with
the offices of the Davis Coal & Coke Company
in this city, but who is now located in Montreal,
dropped in to say “How-de” to former friends
while returning from a sojourn at the shore.
R. B. Isner, general manager of the Davis
Colliery Company at Elkins, W. Va., was in
Baltimore the latter part of last week, paid
a visit to the offices of the company here on
Wednesday and went on to New York.
W. E. Koepker, former representative of The
Black Diamond, was about town during the
middle of the week wearing a broad grin and
receiving congratulations of his coal trade ac¬
quaintances upon the arrival of a girl baby at
his home in Scranton.
At a meeting of the Beaver Run Coal Company
held Tuesday in the office of the Cortright Coal
Company, W. A. Cortright was elected secretary
and treasurer of the company in the place of
Frank Cortright, who died a week ago. H. K.
Cortright was elected vice-president of the com¬
pany.
Sydney T. Sharp, who has conducted a coal
brokerage business in the Drexel Imilding and
in the Commercial Trust liuilding for the last
three years, has formed a partnership with George
T. Johnson, a dealer in iron and steel and will
operate under the firm name of Johnson, Sharp
& Co. in the future.
Chief Statistician Armstrong and his assistant
in the Bureau of Anthracite Statistics gathered
up their belongings and the volume of data
under their care the first of the month and
moved bag and baggage to Wilkesbarre where
the headquarters of this branch of the hard
coal industry will be maintained from this time
on. With the establishment of the Bureau of
Information of the hard coal trade in that city
it was felt that better action could be had by
having the two branches in the same city.
At Del-air, N. J., where the Pennsylvania Rail¬
road’s tracks meet in junction with their tracks
to New York City, there is being stored an im¬
mense pile of coal for future use during the
year and the beginning of next. While the pile
is being stored bv hand, extreme care is taken
to relieve possibility of fire damaging it. One
observing coal man remarked “Some men can
see signs in a ring around the moon, some in
stepping under a step ladder, but the best sign
I have seen in a long time is the immense pile
of coal that the Pennsy is stowing away hither,
thither and yon.”
George C. Foedisch, manager of sales for the
bituminous department of Whitney and Kem-
merer, left Wednesday for an inspection of the
mines of that concern in Wise county, Va. Be¬
fore returning to Philadelphia Mr. Foedisch will
make a trip to Charlestown, S. C., where he
will look over the new piers that have been built
there by the Southern Railway. The intimation
is gathered that Whitney & Kemmerer will do
considerable export business from the Virginia
mines to South America and a considerable
amount of the tonnage will go through this newly
opened southern port.
Clair P. Burthner of the C. P. Burthner Coal
Company, went and done it last Thursday. Har¬
riet B. Leister was the lucky young lady who
changed her name to Mrs. Burthner. The cere¬
mony was performed at the home of the parents
of the bride and the “newly-weds” have taken
apartments in the Wynerva in Germantown. Mr.
Burthner, until a few months ago was located
in Altoona, Pa., and though a new-comer, as a
resident of Philadelphia, he had a host of
acquaintances in the local trade. His company
has extensive operations in the Punxsutawney
district.
Whether it is the new spirit of things, or
whether it is the prospect of a strenuous winter
ahead, it is hard to tell just what has been the
cause of a new stunt among a number of the
coal men during the past few weeks. Several
of them have joined a noon day class at the
Y. M. C. A. that puts them through a course
of sprouts in athletics that makes them “as
hard as nails,” as one of the enthusiasts declared.
Several more have these classes under consid¬
eration, but they have a notion that business
between now and when the snow flies will take
off enough fat to make the Swedish movements
poor in comparison.
Charles W. Mills, who was appointed on an
arbitration board by President Wilson to con¬
sider the miners’ strike trouble in Colorado,
said that it is quite possible that he and his
confreres, Seth Low of New York and Patrick
Gilday of the Miners’ Union, may make a trip
to the Colorado fields in the near future, maybe
within a month, to .go over the situation at
first hand. The commission has gathered a con¬
siderable amount of data at their headquarters in
New York and are about ready to go to the
root of the trouble. Mr. Low has been engaged
in the strenuous task of framing a new con¬
stitution for the state of New York and now
that this has been about concluded the full
attention of the commission can be given to
the labor troubles in the west.
Denver Trade.
Denver, September 9. — (Special Correspond¬
ence.) — The market here offers very little en¬
couragement, aside from an increased demand
for lignite. Mines in the northern lignite dis¬
trict report a better tonnage than for many
months past, and the output will run almost
fifty per cent of normal capacity.
The increased lignite demand is due to a
better consumption on account of cool nights
and local storing for domestic use. Threshing
in northern Colorado has also been a factor
in the better demand.
The bituminous output is light as compared
with last week. The increase of twenty-five
cents a ton since the closing of the storage
season has had a deterring influence and there
seems little disposition to order beyond actual
present requirements. Trinidad reports a fair
tonnage, and Routt county and Walsenburg
will run about forty per cent of full capacity
during the week.
Canon City mines report a decidedly better
output — about fifty per cent of normal. Fre¬
mont and Rockvale are now running, having
been idle several months.
There is plenty of northern lignite slack and
somewhat of a surplus of bituminous. Prices
are very irregular, li.gnite selling at around
ninety cents and bituminous from twenty-five
cents upwards.
Prices for lignite coal f. o. b. mines are as
follows: For Denver delivery, lump, $2. .35
to $2.05; mine run, $1.50 to $1.65; slack, $1.05
to 1.25. For country delivery, lump, $2.50;
mine run. $1.55 to $1.05; slack, $1.05.
220
THE BLACK DIAMOND
[September 11
New England Trade
Boston, September 9. — {Sl>ecial Correspond¬
ence.) — The Boston & Maine Railroad Cornpany
is in the market for 3,200,000 tons of bituminous,
deliveries of which are to extend over a period
of five years. Bids for the coal will be opened
tomorrow, but it will probably be a day or two
before it is known who secured the contract.
Outside of the Boston & Maine’s call for bids,
the local market for Pocahontas and New River
has been e.xtremely quiet during the past week.
.\t Mystic Wharf the same unsatisfactory con¬
ditions have prevailed in the spot market that
have been noted in previous market reports.
Plenty of good bituminous can be had there for
$3.00 per ton on cars, as compared with $3.85 in
the early part of the coal year. Stocks standing
and running to Hampton Roads ports are far
in excess of the demand, and some shippers are
reported as again cutting prices. This practice_ is
not general, however, for the bulk of the ship¬
pers are very optimistic as regards the future of
the market. They point out that there is today a
shortage of labor at the mines, that this will
become more acute as the fall advances, and that
there is bound to be a shorta,ge of cars when
the movements of the crops are in full s\ying.
Some shippers go so far as to predict premiums
on soon after the first snow storm. Some Penn¬
sylvania bituminous, which was on demurrage,
has been sold recently at concessions, but the
amount was too small to be a market factor.
The official price range on these coals is un¬
changed at ninety cents to $1.50 per ton on cars
at the mines.
The local wholesale anthracite market seems
to be marking time. Some new business has
been booked since the holidays, but the amount
is somewhat disappointing. "Most houses expect
a revival of business alon.g about the 15th of the
month, but admit a great deal will depend upon
weather conditions. It is felt that many of the
retail dealers have been holding off in the hopes
that prices would be lower as a result of the
Interstate Commerce Commission’s ruling in the
anthracite case. Now that the effective date of
this ruling has been extended to December 1, it
is believed retailers will not hold off lon,ger.
But the retail trade, with few exceptions, says
the household demand so far this season has
been unusually backward, and that they have
enough coal on hand to carry them along for a
month at- least. Practically all August bookings
have been cleaned up by the wholesalers. Noc-
withstanding the lack of new business, anthracite
prices appear to be on a very firm basis. _ Inde¬
pendent shippers are asking the same prices as
quoted by the big fellows. Stove and egg are
quoted at $5.85 along side Boston Harbor, nut at
$6.10 and pea at $4.05 per ton.
The marine freight rate market is unchanged.
The average asking rate from Hampton Roads
ports to Boston is seventy-five to eighty cents per
ton, while from Baltimore to Boston rates run
seven to ten cents a ton more. From New York
to Boston the average asking rate is fifty to fifty-
five cents per ton.
Boston Trade Notes.
The coal elevator, grain and hay building and
barn of Clark Bros., North Cambridge, were re¬
cently almost totally destroyed by fire. It is
believed the damage will amount to at least
$50,000.
Invitations have arrived in Boston for the
launching on September 9th, at the shipyard of
the New York Ship Buildin,g Company at Cam¬
den, N. J., of the Coastwise Transportation Com¬
pany’s new steamer, “Plymouth.”
A lar.ge wharf property at No. 239 to 245
Medford street, Charlestown, and extending
through to the Mystic River, known as Keyes
Wharf, has been sold to George Tousey. The
wharf contains 58,867 square feet of land. It
is believed that Mr. Tousey bought for local coal
interests, but nothing authentic in regard to the
report has been given out.
Buffalo Trade.
Buffalo, N. Y., September 9'. — (Special Cor¬
respondence.) — Anthracite continues to move
by lake in fair volume, the shipments for the
past week being 112.300 tons, as follows: Chi¬
cago, 36,000 tons; Duluth-Superior, 29,900;
Milwaukee, 29,200; Waukegan. 7,000; Sheboy¬
gan, 5,500; Manitowoc, 4,300; Blind River, 400.
It will not take very heavy shipments this
month to exceed September of last year, for it
was one of the lightest months of the season.
To date this year the shipments are about
350,000 tons short of the same period in 1914,
and it seems unlikely that this will be made
up. At the same time the companies will have
a big demand upon them, on account of the
possibilities of suspension next spring. A
large number of boats are entering here with
ore, so that tonnage is plentiful enough.
An increase in demand from dealers is re¬
ported by some of the anthracite companies.
Trade is not active, but retailers are in a good
many instances finding it advisable to add to
their supplies. Two reasons hinder this plan
from being followed more generally than it is.
For one thing consumers are not taking coal,
but are leaving the dealer to carry full sheds.
Another noticeable feature of retail trade is
the request for credit on an unusually wide¬
spread scale. Coal men could place a lot of
fuel if they were willing to take bigger chances
on getting their pay for it.
The chief new feature of the bituminous
trade is a growing shortage of cars. It has
been getting increasingly difficult during the
past few weeks for operators to get the sort
of cars they want with any degree of prompt¬
ness. A while ago they were able to order
just the sort of equipment needed and no
trouble existed about getting it. Nowadays
they are glad to get any kind of cars. Small
gondolas are very scarce. Box cars are also
hard to find. It is unusual for a car shortage
to develop so early and so suddenly as the
present one, and the situation is hardly yet
appreciated by many coal consumers. They
think that the shippers are not telling the
truth when they say cars are scarce, but any
railroad man will confirm the statement. It is
said that the Pennsylvania railroad has no idle
cars, e.xcept broken-down ones, at present.
Under the influence of a .growing car short¬
age and scarcity of labor, the coal market has
been gaining strength. The best evidence of
new firmness is in slack, but other coal is also
bringing a better price.
Buffalo Trade Briefs.
B. L. Taylor, president of the McKnight
Coal Company, Brockwayville, was a visitor
to the trade here this week.
W. T. Roberts, western sales agent of Wil¬
liams & Peters, has returned from a vacation
trip of several weeks at Long Beach, Long
Island.
C. L. Shaw, dock superintendent for the
Lehigh Valley Coal Sales Company, has gone
to the anthracite mines for a few days’ busi¬
ness trip.
C. F. Westfall, who has been connected with
the local coal trade for several years, has be¬
come a member of the sales staff of Thorne,
Neale & Co.
Clark T. Roberts, of Hedstrom & Co., Chi¬
cago, has been spending some days at his cot¬
tage at Angola, on the lake shore, and visiting
his brothers in the Buffalo coal trade.
W. F. McClurg, president of the McClurg-
Heldson Coal Company, has been laid up for
two or three weeks with an attack of rheuma¬
tism and has gone to the mineral baths at
Alden, this county, for a brief stay.
Buffalo coal salesmen say that the trade in
Hamilton, Ont., is in a very uncertain state,
but there is going to be need of more coal
there soon, as the big plant of the Steel Com¬
pany of Canada is running, and a large addi¬
tion is being built to it.
The Lehigh Valley Railroad Company is
storing 10,000 tons of bituminous coal at Cort¬
land, N. Y., and a switch is being constructed
to handle it. This is in line with the policy
of a number of railroads to stock coal this
fall.
The steamer. White, which is the largest
self-unloading steamer in the world, accord¬
ing to vessel men, has just been taking on a
cargo of 8,000 tons of coal at Erie, Pa., for
delivery at Menominee. The unloading ap¬
paratus takes 3,000 tons of coal per hour
from the v'essel. It consists of a wide belt,
which carries coal a distance of 125 feet over
the dock.
The Richland Coal Company has taken of¬
fices at 1140 and 1142 Prudential building and
will also be represented at Toronto and Ham¬
ilton. The company succeeds the Stickney-
Price Coal Company, with Roswell S. Price as
president; George D. Rowland, vice-president
and secretary, and G. A. Hughes, treasurer.
Bituminous coal will be handled principally
but anthracite will also be sold. The com¬
pany will handle the product of the Richland
Coal Company, Wheeling, W. Va.
Baltimore Trade.
Baltimore, September 9. — (Special Correspond¬
ence.) — Everything is lookin.g up in the coal
trade. Export, domestic demand for manufac-
turnin.g purposes and the first line of inquiry for
the fall household trade are all beginning to hum.
.•knother month and the coal trade is likely to be
in one of the busiest periods of its existence.
The point has now been reached where the de¬
mand is keeping up with the production of the
soft coal fields, and from now on some rises in
price may be expected. No coal producer is
longer thinking of sacrificing coal in any consid¬
erable quantities. Coal on contracts is now much
stron.ger than the immediate market. Everyone
is looking to a bright future and but for anxiety
to-do business after a long period of inaction the
fuel would be held tighter than is now the case.
Taking up exports first, it is noteworthy that
while the foreign movement from this port for
August, which totaled 215,796 tons, did not equal
the June or July tonna.ge, it was a very large ship¬
ment. In addition, September has started with
a rush. Official figures from the custom house
for the first four working days of September
showed a total of over 55,000 tons loaded for that
period. That the loadings for September will
run between 250,000 and 300,000 tons is predicted.
Italy is taking the large part of this foreign
coal.
Demand for coal at home for manufacturing
purposes is improviag steadily. In Baltimore and
vicinity the factories are pretty busy now, and
coal contracts are being called on in steady man¬
ner. From more distant ports come encouraging
orders and inquiries, also, and there can no longer
be a doubt that a general improvement in busi¬
ness conditions is at hand.
From mining regions come reports that efforts
are now being made to increase production to
meet growing demands. Labor shortage is more
and more evident, and the past two weeks has
especially seen a large movement of Italians to
the coast to take vessels for Europe. These men
are reservists in the Italian army and have been
called to the colors.
Car supply in both the Fairmont and Somerset
regions has not been of the best for ten days or
so past.
Prices at the mines for spot to the trade are
some ten to fifteen cents below new contract
prices in most cases. The spot market may be
quoted about as follows
'Fairmont —
F. 0. B.
F. 0. B.
Mines.
Baltimore.
Three-quarter . . . .
. $0.85@ .90
$2.28@2.33
Run of mine .
. .80
2.23
Slack .
2.03@2.08
Somerset —
Best .
. 1.25@1.35
2.43@2.53
Good .
. 1.10@1.15
2.28@2.33
W. M. R. R.—
Freeport .
. 80@ .85
1.98@2.03
B. & 0.—
Freeport .
. 80@ .85
1.98@2.03
P. R. R.—
Best South Fori;..
. ].30@1.35
2.48@2.53
Miller vein .
. 1.10@1.15
2.78(5)2.83
Ordinary .
. 85@ .95
2.03(82.13
Householders
who failed to lav in- ;
supplies of
anthracite are now beginning to wake
up to the
fact. Inquiries are growing more numerous day
by day. Fall and early winter prices have been
set by the Baltimore Retail Coal Exchange, al¬
though with severe winter weather an advance of
twenty-five cents a ton is likely to be added, as
in former years. The schedule is as follows :
Hard coal— No. 1, $7.10; No. 2, $7.35; No. 3,
$7.60; nut, $7.85; pea, $5.60. Sunbury — No. 2,
$7.60; No. 3, $7.85; nut, $8.10. Lykens Valley-
No. 2, $8.35; No. 3, $8.60; nut, $8.60.
Some Trade Notes.
Eoreign purchasers are now in this market for
about 300,000 tons of coal for winter delivery.
Several local firms are interested in this pros¬
pective business.
The board of directors of the Baltimore & Ohio
Railroad is expected to approve next week the
final plans for the new coal pier of that road at
Curtis Bay. The pier will have a capacity of
2,000 tons per hour and will cost about $1,250,000.
General officers and superintendents of the
various departments of the Consolidation Coal
Company from many sections of this country and
Canada met in conference here the past week.
The company officials all predicted a big fall and
winter business.
1
Phe Black Diamond
Vol. S5. No. 12
SEPTEMBER 18. 191S S3.00 Per Ye.r
What Will Labor Negotiations Develop in 1916?
A number of developments in the last month
or so have suggested the question : “What is to
be the labor situation next spring?” The ques¬
tion has been asked by a number of leading
operators and consumers. Such an answer as is
possible is pertinent at this time.
The things which suggested the question were :
First, John P. White has outlined the union’s
program for the anthracite field. It is trying to
get a monopoly of anthracite mine labor before
the first of next April.
Second, operators are beginning to appreciate
that, for the first time in six years, the labor con¬
tracts between the miners and operators will ex¬
pire simultaneously in both the anthracite and
bituminous fields.
Third, the miners’ union is carrying on now a
vigorous campaign for the unionization of eastern
Kentucky. As this signifies, efforts will probably
be revived for the unionization of West Vir¬
ginia.
Fourth, there is already a shortage of labor in
bituminous mining districts, because quite a num¬
ber of workers have returned to Europe to par¬
ticipate in the war and because we have had no
new supplies of mine labor from Europe for
almost two years.
Fifth, there is already threatening a shortage
of coal this fall as a direct result of a shortage
of motive power and something of a shortage of
cars on the railroads. This suggests that if we
are to have a shortage of coal extending from
October to January, it may be prolonged if the
weather is severe and consequently there may be
no time to stock up ahead of April first, as is
customarily done.
The Far-sighted Policy.
These five things have most naturally aroused
interest in what is likely to be the labor situation
next spring fully four months ahead of time when
discussion of such matters is usually taken up.
That is, the coal operators and the coal buyers
are beginning to appreciate that these are ex¬
traordinary times and that both the producers
and consumers must be far-sighted and fore¬
handed in dealing with the distribution of coal
for this year. They are sure to have trouble with
coal supply for the next four months. If there is
a likelihood of a general strike next spring, they
may have more serious trouble during the first
five months of next year. If there is to be no
strike next spring, they would like to know it as
that would cut their troubles in half by giving
them only one thing to worr}' about instead of
two. On the latter account, the people who are
vitally interested in coal are more concerned now
about the labor situation than commonly they are
at this time of year.
While an opinion as to the drift of things is
here expressed, it is put out with the definite
understanding that it is merely one man’s guess.
This is so because developments have not been
positive enough to indicate any unmistakable
tendency. Xo one can say for sure what is
going to develop because the miners, as yet, do
not know what they are going to demand, and of
course, the operators as yet do not know what
replies they are going to make. Without any
definite proposal and without any catagorical re¬
ply, it is clearly out of question to say what
the result of any conference will be.
Trouble Is Ahead
Still, it is possible to outline a few general
principles which will more than likely apply.
Those principles will govern both the miners and
the operators because both are human and both
are likely to take the perfectly human position on
matters now occupying the mind of each. On the
score of what human nature will do under given
conditions and many things considered, we are,
at the minute much inclined to this opinion :
The miners will make excessive demands be¬
cause conditions favor them.
The operators are and will be in no position to
grant anything. Rather they should ask conces¬
sions.
All Facts Considered, the Union Will
Make Excessive Demands and the Oper¬
ators Will Resist — A Long Parley Is
Inevitable.
Therefore, we may have a serious strike. IMost
surely, we will have a prolonged period of nego¬
tiation during which there will be a suspension of
operators in the major portion of the field.
Having expressed such decided views, it is in¬
cumbent upon us to substantiate them, if possible.
To do that is the purpose of this article. We will
start with the simplest fundamental, which is the
unmistakable advantage, which the miners have
and will have over the operators. They can
hardly be expected to waive such an advantage,
hence that is the cru.x of the situation.
According to the last available statistics — those
of 1912 — the coal mines of the United States em¬
ployed 72.5,000 men. Of these, in round numbers,
400,000 are members of the United Wine Workers
of America.
It has been estimated that 20,000 miners each
year are graduated out of the mines into other
lines of industry and that it is necessary to obtain
for the mines each year 40,000 new miners to get
out just the increased production, due to growth
of population, etc. Therefore, with 20,000 miners
going out of the mines and with 40,000 men needed
to mine the increased output, there is a demand
for 60,000 new men each year in the American
coal mines.
Labor Shortage Is a Fact.
Right now, the coal mines are losing more than
their regular proportion of workers to other lines
of industry. That is to say, the coal mines are
running on slack time but other businesses, such
as steel mills and the like, are running to full
capacity to satisfy foreign orders. They are draw¬
ing on nearby supplies of labor. Therefore, they
are substracting heavily from the mine workers
who naturally are seeking more attractive fields
of ' employment.
Also the mines have been losing quite heavily
to foreign countries because of the war. They
are not getting in any new men and have not got¬
ten any for the last year and a half.
Instead, therefore, of losing only 20,000 per
year through graduation of other lines of indus¬
try, the probabilities are that the mines have lost
25,000 to 30,000 at least. Instead of getting 40,000
new miners from abroad, the mines have obtained
none. Therefore, they are short in mine workers
about 75,000.
Instead of 725,000 men, there are probably less
than 700,000 men in the mines at a time when
the increased production would call for more
than 750,000 miners.
This creates a definite shortage of labor whicli
is only offset by this fact : In 1912 the average
working time of the mines of America was 225
days. The potential working time was 300 days.
That is, by working the additional seventy-five
days, the men could have produced one-third more
coal than they did. By the same token, the mines
could have gotten out the same production with
one-third less men if they had worked full time
or 300 days. In other words, they could have
gotten out the same production with 600.000 men
working full time, that they did get out with 725,-
000 men working 225 days a year.
Short Production of Mines.
This possibility, however, does not relieve the
situation or offset the shortage. The fact of the
matter is that instead of the mines working full
time all summer, to make up for the shortage of
labor, they have been working less time than
usual. In fact, only about sixty per cent of the
mines have been in operation and those sixty per
cent have only been working forty-five or fifty
per cent of the time. Thus we not only have a
shortage of labor, but a shortage of working
time. As a natural result, we have a very marked
shortage of coal.
In this connection, this one thing must be re¬
membered. The subtraction from the ranks of
the miners was not a subtraction from the ranks
of the mine workers union. [Most of those who
went abroad were, in the main, non-union men.
Thus the membership of the miners union is still
in round numbers 400,000, while the number of
men at work has been reduced, probably, to
700,000. This means that the miners union has
even a more commanding position in the labor
situation than it had before. This is so because
the union controls a larger percentage of the
workers than it did.
How Far Will They Go?
As this indicates, the miners’ union is in a
strong if not indeed a commanding position. The
question is : “What use will the union make of its
power? How far will the officers dare go in
bringing the coal trade to book, as it is inclined
to say?”
It must be remembered that the union has a
powerful advantage from the fact that, for the
first time in six years, the contracts between the
anthracite and bituminous miners and operators
expire simultaneously. This means that it is with¬
in the power of the miners’ union to call out prac¬
tically all of the men in those major producing
states which yield fully seventy-five per cent of
the total coal production of America. That is,
they can close down the anthracite mines and
principally all the bituminous mines of Pennsyl¬
vania. They can close down a number of mines
of West Virginia and all of the mines of Ohio,
Indiana, Illinois, Iowa and Michigan. If they
make any progress in eastern Kentucky, they may
cause some trouble there. Even so, by closing
the mines now under union control, they could
stop the production in the states which yield fully
seventy-five per cent of the nation’s output.
There is no need to mince words about this
situatiefn. It is in the power of the miners union
and John P. White particularly, to paralyze the
coal mining industry by taking an arbitrary stand
and by insisting upon the granting of the union
demands.
Situations of this kind have arisen before. One
such situation arose six years ago, or in the
spring of 1910. Then the argument was brought
forward that the thing was entirely too big to
happen. It was said then that if a general strike
had been called it would have brought such a
tremendous calamity the miners would have lost
the moral support of the public and, therefore, the
battle.
It is true that the miners waived in part their
advantage at that time, but they did so, not
through fear of public opinion, but because of
other considerations which it is not necessary to
go into now.
We are convinced, on the contrary, that the
union is indifferent of public opinion because it
believes that it is the master of it. We are not
convinced and have not been, that the union
would, for an instant, stop to consider what the
public thought about its acts if it saw that by
resisting public opinion it could win a permanent
advantage.
What the Unions Think
In order to get the attitude of labor generally
towards such a colossal thing as a general strike
at this time, it is only necessary to make a brief
reference to what labor has done in recent months
in other parts of the world. As every one knows,
Germany’s whole hope of success and the basis
of its success thus far is its astounding supplies
of munitions of war. Yet the German workers in
the big gun factories were willing to go out on
strike and threatened to do so until the govern¬
ment said it would send any man who struck to
the penitentiary for twenty years.
Also England was, and is, the source of coal
supply for all of the allied countries. The con¬
tinuous operation of the mines is imperative if
England’s greatest war is to be carried through.
222
THE BLACK DIA310ND
[September 18
Nevertheless the English coal miners have struck
twice.
Further, Germany and Austria have been carry¬
ing on a propaganda in this country to cause
strikes in the factories which supply England,
France, and Russia with war munitions. The
propaganda — impossible of success without the
support of our unions— reached such a stage that
it was necessary for our government to ask the
recall of the Austrian ambassador and one Ger¬
man attache is to be sent home. The American
labor was apparently perfectly willing to throttle
American industry for no better reason than some
labor leaders were convinced that a strike would
be a good thing — for them.
With ideas such as these — thoroughly_ selfish
as they are — permeating labor organizations
around the world, it is no time to expect _ the
miners union of America to adopt any altruistic
attitude and hence to waive any advantage which
it might have, that the prosperity of the country
can be continued.
A Plan to Confiscate.
On the contrary, the miners union is committed
to the policy of confiscating all American coal
mines. The vice-president of that organization
has gone on record to the effect that by embrac¬
ing adv'antages such as are here outlined and by
making them the occasion for the constant assess¬
ment of more than the operators can afford to
pay, the miners propose to induce the operators
to retire from the mines and abandon them to
the union to be worked upon a co-operative basis.
All the circumstances considered, we are not
of the opinion that the miners union will hesitate
even at the most excessive demands or the most
drastic action in order to make itself master of
the American coal mining situation. We are, on
the contrary, disposed to believe that the union
will take full advantage of the present situation
to get what it wants.
Mr. White’s Necessity.
There is another and a purely personal matter
which introdues itself. John P. White has been
in office for several years and has made a con¬
spicuous failure of everything that he has tried
seriously to do. He retired ingloriously from
West Virginia which he said he was going to mas¬
ter. He made a frontal attack on eastern Kentucky
and retired almost before the first gun was fired.
He went into Colorado and created civil war
with the result only that some of his followers
have been indicted and convicted on a charge of
murder while the union lost the fight which he
made.
In the joint wage conferences — a fact which
his followers know all too well — he won in a
small way not because of any strategy or skill
on his part, but because of the inherent weakness
of the opposition and of the spines of a few of
the operators’ leaders.
As a matter of fact, Mr. White has had failure
written upon his brow from the time he succeeded
Lewis until now, and he must do something to
recover his prestige or he is done. This is a
personal matter and yet it bears intimately upon
the situation.
Stand of the Operators.
Seeing the position of the miners and their
strategic advantage, their action in the forth¬
coming conferences can with reasonable accuracy
be forcasted. The question naturally arises :
“What will be the attitude of the operators to¬
wards the demand which the miners must make?”
There can be but one answer to that question.
The impoverished condition of the mines leaves
the operators no choice but to resist the miners
even in “good times.” The figures, gathered by
the Lhiited States Geological Survey, prove that
of the six major producing states in the union,
only one did so good as to break even in the
matter of selling prices compared with operating
cost. Five of the states came out of a good year
with a monetary loss. That is, the average of
losses completely offset the average of profits,
leaving the industry of the states actually, but not
admittedly insolvent.
But the good times have gone. Last winter was
a distressing one, both in the loss of tonnage and
in the loss of profit on coal. The companies that
heretofore had made money, lost money. Those
that had lost money, lost still more.
From a disappointing winter the operators went
into a most discouraging summer. They lost still
further in tonnage and made up none of it by
any increase in price. It is not an extreme state¬
ment to say that coal trade at the minute is
potentially bankrupt. Therefore, to ask such an
industry to make any such concessions as the
strategetic advantage of the miners would in¬
dicate, is something worse than suicide. It is to
ask something that is hopelessly impossible. The
operators have not the money to fight but curious¬
ly enough they are so poor that they dare not re¬
fuse to fight. On the latter score the operators
will resist vigorously any demand which the
miners may make.
This means to say that for two reasons — one
their strategetic advantage and the other the
urgent necessity of IMr. White to save his face —
the miners are going to make excessive demands
upon the operators next spring. Because they
cannot afford to grant any concessions, the oper¬
ators are going to resist those demands to the
limit. A serious conflict is thus inevitable.
Recently John P. White has made a* vigorous
campaign in the anthracite field for new mem¬
bers of the United Mine Workers of America.
The situation thus presented is one of more than
common interest. That is, there is more at stake
at present than merely a matter of recruiting new
members for the miners’ union. Even a cursory
glance at the situation will tell the whole story.
Just recently, as is commonly known, the In¬
terstate Commerce Commission went elaborately
into the matter of rates on anthracite coal, and
decided, as is well known, to reduce the rates
anywhere from fifteen to twenty-five cents a ton
on the average in the territory where perhaps as
much as eighty per cent of this coal is con¬
sumed.. These 'rates do not take effect until the
first of October and there is a good deal of curi¬
osity on the part of the public to know just what
disposition will be made of that fifteen cents.
For example, up to this time the public has
wanted to know whether the operators would ab¬
sorb it themselves or whether they would pass it
on to the retailer to absorb it or whether both
the operators and retailers would pass it on to
the consumer in the form of a reduction in the
delivered price of coal.
Now by a curious twist of affairs a fourth ele¬
ment has been introduced into the situation. The
question now is: “Will the operators, retailers,
and consumers all be cheated out of this fifteen
cents and will it all be absorbed by the miners
through an increase in pay?” The latter ques¬
tion is pertinent when the facts are taken into
consideration. As is commonly known, the con¬
sumers of anthracite coal have not been taking
their customary amounts during the summer. As
is known, production of anthracite up to the sum¬
mer was about two million tons short of what it
customarily is. There is no reason to believe
that consumption will fall short two million tons
this year and hence there is a reasonable assump¬
tion that this shortage must be made up between
now and the first of next April. This means, of
course, that in the ensuing six months there is
.going to be a constant excess of demand over
supply. Whenever that thing happens, the prices
always are above what might be considered
normal. In other times, for example, anthracite
prices have risen to premium figures. Especially
the independents have taken advantage of the
situation to get a premium price for the coal.
There is no reason to believe that the so-called
independents will not duplicate their action this
year even though the so-called companies con¬
tinue to accept the same price that they have here¬
tofore. But whether there is a premium or none,
a situation is almost sure to exist where the re¬
duction in freight rates will not be passed on to
anybody by the coal operators. The independents
and the companies alike, for at least six months,
or until the first of next April, will absorb for
themselves the fifteen cents a ton or more which
is the measure of the decrease in rates.
By a curious coincidence, the operators will
thus preserve an advantage in the matter of
profits until the expiration of the old labor con¬
tract and until the time comes for negotiating
the new one. They will not do this by any con¬
cert of action, but in response to a natural trade
condition which normally would indicate a rise
in price.
When the first of next April comes around and
when this advantage has not been passed on to
either the retailer or the consumer, the miners’
union will come in to put its claims against those
of the retailer and the general public. The union
will say, in substance at least, “You have now in
the delivered price a profit of fifteen or twent\--
five cents a ton greater than you used to have.
The prices to the public have been such and such
for years and there is no need of change. There¬
fore give us the fifteen cents as our pay for get¬
ting out the coal. We propose to take it all.”
Strengthening this demand which they are very
Whether it results merely in prolonged negotia¬
tion, or whether it terminates in a prolonged and
disastrous strike must depend upon developments
after the turn of the year. One thing, however,
is perfectly apparent. No consumer of coal can
with any confidence, assume that he is going to
have a sufficient supply after the first of next
April unless he begins soon to arrange for it.
That after all, is the very essence of the
question : “What is going to be the labor situa¬
tion next spring?” That is a point which the
operators want to know about. It is a point that
the consumers want to know about. The facts
considered, it seems to us the answer given is
inevitable.
prone to make, the miners are trying to gain by
force a monopoly of mine labor in the anthra¬
cite field, and thus, through recognition of the
union, absorb unto themselves the results of the
Interstate Commerce Commission’s decision.
We have, of course, no positive way of know¬
ing what the operators will think when this de¬
mand is made. Those operators not given to
discussin.g issues before they arise or to dis¬
counting the future. However, the opera¬
tors are disposed to say that if they are to be
deprived of all this advantage accruing from the
Government’s decision, those benefits should be
equally distributed among the Government’s sub¬
jects. That is, the commission did not make this
decision as an aid to the miners’ union, in spite
of the fact that the' miners have one of their
memliers in the cabinet. On the contrary, if they
are to be despoiled by the Government, the con¬
sumer, who after all is the greater majority of
America, should have some consideration given
to his claims.
In all of these labor disputes the operators
stand any way as the unpaid agent of the con¬
sumer, resisting the demands of the miner, and
the operators will probably continue to act in that
capacity. A fight which is going to be precipi¬
tated almost surely will be a fight of the public
against one part of the public as one operator
recently expressed it ; that small part of the pub¬
lic wants to absorb all of the advantages which
the Go-vernment tried to .give to the public as a
whole.
But whatever the issue, it is hard to believe
that the miners will surrender a chance to .get
this ten million a year without making a fight for
it and that the operators will resist to the prover¬
bial “last ditch” the demands of the Union. There¬
fore it is very hard to believe that we are going
to get through next spring’s conference in the an¬
thracite field without a great struggle, which may
develop into the greatest in that field. This is so
because the amount involved is larger than it
ever has been before. That is, ten million dollars
a year is quite a sum to fight for.
Indications that this struggle is imminent are
that such railroads as the Pennsylvania and New
York Central are already storing coal and that
the anthracite mines themselves are beginning to
put stocks in piles, while the larger consumers of
anthracite are doing the same.
New York Golf Club.
The New York Coal Trade Golf Association
held a one-day tournament on the links of the
Oakland Golf Club, near Bayside on Long Island,
on Tuesday. Owing to the absence of a great
many of the members of the association from
the city, the attendance was the smallest that
has yet been witnessed at any of the tourna¬
ments. Wallace Eyre, of the Knickerbocker Fuel
Company, won the prize for the thirty-six hole
medal score play; C. Law Watkins, of the Wat¬
kins Coal Company, the prize for the kickers’
handicap in the morning play, and Marshall Naun,
of the Sterling Coal Company, the prize for the
kickers’ handicap for the afternoon play.
The annual two-day fall tournament will be
held on the golf links of the Seaview Golf Club,
just outside of Atlantic City, about the middle
of October. It is expected that this will be one
of the biggest tournaments that the association
has yet held. It is anticipated that there will
be a very large attendance of Philadelphia coal
trade golfers at this tournament, as invitations
have been presented them to participate.
J. H. Lumle\% of Peale, Peacock & Kerr, is
one of the most recent New York coal trade
golfers to join the association, and he participated
in the tournament.
Preparing for a Big Anthracite Strike.
THE BLACK DIAMOND
223
No. 13]
Miners Demand 20 Per Cent Anthracite Increase.
Wilkks-Rarke, September 14. — (St’ccidl Carre-
spondcnce.) — After a dress rehearsal that has
lasted a couple of months — in the shape of
speeches and the spreading of the hard coal
miners’ propaganda under the direction of
President White of the United Mine Workers
— the first of the play has been concluded.
This even might be taken as a prologue, for
if past performances can be taken as a crite¬
rion, there is plenty of action to follow.
After a four days’ session that lasted through
the fore part of last week, on Friday came
the nub of the subject under discussion. This
is in the form of the demands which the miners
have formulated to be placed before the coal
operators for discussion.
Several features of the demands had been
anticipated. Some of the points that were to
prove stumbling stones were carefully “cov¬
ered up’’ — as carefully as the big guns abroad
are shielded. The demand for an eight-hour
day, for a twenty per cent increase, and for
recognition of the union, loom up large as
obstacles that would prevent a quick adjudi¬
cation of the matter in contention.
These, however, are not near the thorns in
the side that other questions that are envel¬
oped in the demands. While there are ten
points at issue raised by the miners in con¬
vention, several of these have room for in¬
determinable argument.
List of Miners’ Demands
The full list of demands adopted by the
convention follows:
1. We demand that the next contract be
for a period of two years, commencing April
1, 1916, and ending March 31, 1918, and that
the making of individual agreements and con¬
tracts in the mining of coal shall be prohib¬
ited.
2. We demand an increase of 20 per cent on
all wage rates now being paid in the anthra¬
cite coal fields.
3. We demand an eight-hour work day for
all day labor employed in and around the
mines, the present rates to be the basis upon
which the advance above demanded shall ap¬
ply, with time and half time for overtime and
double time for Sundays and holidays,
4. We demand full and complete recogni¬
tion of the United Mine Workers of America
in districts 1, 7 and 9, anthracite.
5. We demand a more simplified, speedy
and satisfactory method of adjusting griev¬
ances,
6. We demand that no contract miner shall
be permitted to have more than one working
place,
7. We demand that the selling price of coal¬
mining supplies to miners be fixed on a more
equitable and uniform basis,
8. We demand that wherever coal shall be
mined on the car basis, it shall be_ weighed
and be paid for on a mine-run basis by the
ton of 2,240 pounds, and all refuse cleaned
from the coal (either gobbed or loaded) shall
be paid for on at least an equal basis as is
paid for the coal,
9. We demand a readjustment of the ma¬
chine mining scale to the extent that equitable
rates and conditions shall obtain as a basis
for this system.
10. We demand that the arrangements of
detailed wage scales and the settlement of in¬
ternal questions, both as regards prices and
conditions, be referred to representatives of
the operators and miners of each district to
be adjusted on an equitable basis.
Make Demands Simple,
From the moment that he took charge of
the convention on Wednesday until it closed
on Friday, President White continually im¬
pressed on the delegates and the various com¬
mittees that there was a world of meaning in
the motto “Be Brief.” To this end he im¬
pressed them with the importance of confining
their demands only to those things that the
miners insist that they must have.
In his address in opening the convention
White said: “This is an exclusive wage con¬
vention, and in canvassing the situation we
should proceed cautiously and approach these
problems with calm deliberation. Large issues
are involved, which include your welfare and
likewise the welfare of the public, which is a
great and important factor in our wage ad¬
justments.”
Throughout the whole of the convention
The Union Officials Outline Their De¬
mands — The Operators Will Fight and
Selection of a New Leader of the Oper¬
ators Is Discussed.
White kept a weather eye on the actions of
the committee and of the delegates in gen¬
eral, that there should be nothing written into
the demands that would in anywise impair the
opinion of the general public. By this action
he has shown that much of the conferences
that are to come may be expected to impress
the public as to the desirability of siding with
the miners.
When the committee in charge of the draft¬
ing of the demands presented them to the
convention, three matters were brought into
the limelight. First came the proposition de¬
manding recognition of the union.
Since the time that White entered on his
tour of the hard coal regions he has preached
to all of his hearers that the recognition of
the union must be one of the questions set¬
tled at the time that a new agreement is en¬
tered into. On this one demand there has
been any number of statements made by the
operators that they will not budge one inch
from the stand that they have taken for the
open shop.
So far as the shortening of the term of
agreement to be entered into, this is a point
that has always been considered as a matter
that can be traded upon. That, and the request
for an increase of twenty per cent raise in
wages, are said to be the weak links in the
chain. Just what the miners conceive to be
an equitable wage adjustment are no more
shown in the request for twenty per cent more
pay than if they had asked for twice the
amount they are now receiving.
Conciliation Board,
Clause five is one of the great stumbling
blocks. Here is where President White
showed that there is much “under the cover”
to be expected before there is an adjustment
of the question at issue. P'rom the time that
the convention opened it was a moot point
as to how far the delegates should proceed
in asking for a change in the adjustment of
grievances.
When this clause was read many of the
delegates rose and demanded that instead of
merely demanding a “more simplified, speedy
and satisfactory method of adjusting griev¬
ances,” a demand be made for the abolition
of the present conciliation board and a sub¬
stitute plan be included in the demands.
To these suggestions President White coun¬
seled that the clause be allowed to stand. He
said that the clause was broad enough to allow
the negotiators to work out a given plan to be
presented to the operators when the demands
were passed upon. And, when still further
pressed. President White was not averse to
making the declaration that the clause in no
vyay endorsed the present system of arbitra¬
tion, “but it means the abolition of the present
status of the conciliation board,” were the
words he used.
Again, when consideration was being given
to the last clause in the demands by the miners
President White was given an opportunity to
forecast the attitude of the miners that will
be taken when the demands are submitted.
He put forth the contention that wages for
certain classes of workmen in certain of the
fields where the workings were different than
the average, were purely local in contention
and should be settled by conference in that
particular section. “Many of the inequalities
and difficulties under which you now labor will
be eliminated and when section 10 has the
backing of your local union it will bring won¬
derful uniformity.”
In conclusion, and in expressing his hope
that much of the plan of the miners would
be recognized. President White said: “We
go into conference with the operators know¬
ing more about working conditions than ever
before, for if your locals have done their duty
we shall have in our hands statistics to prove
every inequality and condition backed with
figures. So with this abundance of informa¬
tion and a stronger union, we shall be capable
of rejjresenting the anthracite miners in a
way not possible before. In the settlements
of the past, we had no such machinery to im¬
prove conditions as you have now and will
have if the negotiations are successful,”
President White, Secretary William H.
Green and Vice-President Frank J. Hayes
were named as the committee to meet the
operators. To these will be added the execu¬
tive boards of the three district anthracite
organizations.
The letter to the operators has been sent
and suggestion has been made that Philadel¬
phia be chosen for the first meeting between
the men and their employers. At this meet¬
ing subcommittees will be given the task of
whipping into shape an agreement as is satis¬
factory to the representatives of the union and
the operators. When this is completed, it
must again go before the miners’ delegates.
The Operators’ Leader.
No little interest is evinced in the person¬
ality that will take up the guiding reins for the
operators. Quite a bit of guessing is being
indulged in as to whether or no the situation
will create a new man to become the recog¬
nized head of the anthracite industry. Since
the death of George F. Baer no one individual¬
ity has superseded others in the conduct of
the business end of hard coal mining. In
some quarters it is thought that E. T. Stotes-
bery, the Philadelphia banker and head of the
Reading Company, may be the man to step
to the forefront. His long connection with
matters appertaining to the business and finan¬
cial end of the industry would give him an
excellent grasp of the detail that must be
thoroughly sifted in arriving at points under
consideration. But Mr. Stotesbery is a busy
man and it is a question of a huge sacrifice
of time and attention.
Of the railroad men that have been men¬
tioned and who may enter the limelight, the
names of Captain May of the Erie, William
G. Bessler of the Jersey Central, and Presi¬
dent Loree of the D., L. & W, have appeared
in print,
Percy Maderia, of the Maderia Hill Com¬
pany, while an independent, is looked upon as
a man of large caliber and one who might
be able to swing the operators’ end to a satis¬
factory turn. President Richards, of the Read¬
ing Coal & Iron Company, stands high in
the favor of the men and may be a factor.
Since the demands have been drafted there
has been a pronounced sentiment shown in the
anthracite regions that all speed and dispatch
should be used in “clearing the decks for ac¬
tion.” In Wilkes-Barre, the business men,
acting through the Chamber of Commerce,
have drafted a letter to the miners’ officials
and the representatives of coal mining con¬
cerns asking that a meeting be held as soon
as possibe, that general business be not
jeopardized.
Naval Board Personnel.
Secretary Daniels of the United States Navy
Department, who recently made public the per¬
sonnel of the new Naval Advisory Board, an¬
nounced that the first meeting will be held Octo¬
ber 6th, and that Thomas A, Edison will pre¬
side. In looking over the appointments to this
board, several names well known to the Amer¬
ican coal trade are found. Among the members
is William Lawrence Saunders, chairman of the
Ingersoll-Rand Company, Mr. Saunder’s com¬
pany for many years being prominent in the
manufacture of air compressors, radialaxe system
of coal mining, etc. Another membe.r is Spencer
Miller, of the Lid.gerwood Manufacturing Com¬
pany of New York, who invented the rope drive
and whose cableways at the Panama Canal helped
towards the hasty completion of that great water¬
way, One of Mr. Miller’s recent inventions had
to do with the marine cableway that' makes it
possible to transship coal under rapid headway
at sea. Another of his inventions having to do
with the rapid and economical transfer of coal,
is his system for handling coal from one vessel
to another, or from vessel to dock, or vice versa,
at a rapid rate and with the use of fewer men
than by the ordinary method. Thomas Robins
of the Robins Conveying Belt Company, has also
been appointed a member of the Naval Advisory
Board. Mr. Robins is the inventor of numerous
mechanical devices, including the belt conveyor
for conveying ore and coal, for which he was
awarded a gold medal at the Paris Exposition.
224
THE BLACK DIAMOND
[September 18
M. N. Bedford & Company’s Bookkeeping System.
The Black Diamond has devoted page after
page to the subject of bookkeeping systems for
retail dealers. Still a constant flow of inquiries
for such a system evidence the fact that there is
still a great need for something more elastic than
has been published and for something to fit the
retail coal trade.
We are led to believe that the many systems
to the scales, and is used as a check against
Sheet No. 1, and a memorandum of the different
teams as they go and come from the yard.
Sheet No. .'t is the most essential part of the
transaction. This sheet is really three sheets,
consisting of invoices in triplicate filled in at one
writing. These sheets measuring five and one-
half by eight inches in size are very effective, as
0 M. N. BEDFORD & CO. ORDER SHEET
Sepf. s loi 5
No.
NAME
ADDRESS
AMOUNT AND KIND
PAID
ORDERED BY
REMARKS
1
Alpena Trust Co*
408 Main St.
30
Tons Scr.Soft
C.O.D.
Wm. Jones
Straight Delivery
2
J .P. Johnston
120 Clark St.
2
" Chestnut
14.00
Seef
will haul
3
E, A. Jones
1218 Mill St.
1
" Poca
4.. SO
Urs.J.
Carry job
4
Dlsinond Foundry
208 River St.
2
" Bloss
Chg.
Ryan
Ro chutes
- -
_
- - -
—
Sheet No. 1. Daily Order Sheet.
at the end of the month in making out accounts.
No second invoice is sent after the delivery of
the first one with the load or mailing it the day
the delivery is made.
Use of this triplicate system also enables the
driver to know just where he is going. If the
bills are stamped C. O. D., he is to make a col¬
lection. He leaves the bill if it is a charge order.
M. N. Bedford & Company furnish their drivers
with a neat aluminum binder to carry these bills,
/Q^
Sheet No. 4. Ledger Sheet.
which have been devised by account book manu¬
facturers and commercial accountants may have
been practical enou.gh as systems, yet they have
not been particularly adapted to the particular
needs of the coal man. In other words, the de¬
mands of the coal trades are peculiar and varied.
Perhaps no one system can fit even approximately
in several communities.
It may be that only by obtaining and publish-
apparently no attention is paid to smaller sized
bills. They are destroyed or thrown away in a
great many cases. The original and duplicate in¬
voices are sent out with the load. The original
copy is left at the point of delivery, and the du¬
plicate copy is receipted by the consumer and
returned to the office. At the end of the day this
duplicate copy is compared with the third copy
kept in the office, and if any additional charge
as sometimes as many as four different orders
are on one load.
The copy of the bill signed by the customer
and returned to the office by the driver is filed
away for future reference, and as evidence in
case any dispute should arise over a certain order.
Office copies which are retained in the office
are kept until the end of the month, when t|ie
trial balance is taken off. These copies are at-
M. N, Bedford & Co.
date Sept. B 1915
PURCHASER
CROSS
TARE
NET
Alpena Trust Go
.7500
1500
6000
J.P. Johnston
56 00
1600
4000
B. A. Jones
3120
1120
2000
Ddamond Foundry
5800
1800
4000
—
Sheet No. 2. Scale Memorandum.
ing a description of different systems which have
lieen devised and are being successfully used by
several coal companies, will the dealers be able
to gather enough ideas to design a simpler and
more adaptable system for their own use, at any
rate, that is what we propose to do.
One of the first systems which has come in is
that used by M. N. Bedford & Company of Al-
liena, Mich. This system seems to contain many
characteristics which go to make up a simple,
easy and accurate means of keeping books for
coal dealers.
M. N. Bedford & Company sell to residences,
factories and to a marine trade, and the business
is practically all retail. A description of the ac¬
counting methods of this company is as follows :
Sheet No. 1 shown herewith is a daily order
sheet, and is the first record made of a transac¬
tion. It enables the clerk or dealer to have all
the day’s orders before him, in such a way that
he can line up deliveries going in one direction.
This company uses horses only for delivery pur¬
poses, and found this form of order sheet an
advantage over the ordinary order book in which
order entries are usually scattered and very in¬
complete. When the orders are all filled, these
order sheets are filed away in a binder for future
reference.
Sheet No. 2 shown herewith is the second part
of a transaction, and is just a memo pad attached
M. N. BEDFORD & COMPANY
...DCALEJ^S IN...
HARD anc! SOFT COAL
TTIEPHONE 220.
Sold to
Street _
N?
Alpena. Mich.
r
DO NOT DESTKOY THIS DILI.
1.2170.
To ^ooo Lbs. Soft Coal
PER T.
AMT.
“ " “ Lump Coal
“ “ Egg
“ “ Stove "
" Nut
“ “ Pocahontas “
“ *' Blacksmith “
“ “ Slack "
. .. _
— -
—
“ Carrying
-
Received by
Total
oo
a
Delivered by /
WE DO NOT ITEMIZE ACAIN
Sheet No. 3. Invoices in Triplicate.
or change is noted on the duplicate copy, the of¬
fice copy is accordingly corrected.
In some cases the original invoice is not left
with the customer, but brought back to the office
and mailed direct to the buyer (when it is a charge
sale) so that he will get the invoice personally.
The boy or lady at the home does not always
give the delivered bills to the purchaser, but
usually hang them up somewhere and forget all
about them.
Through the use of this system the company
knows at the end of each day that each cus¬
tomer has his bill, thus avoiding a lot of trouble
Sheet No. 5. Statement Blank.
tached to the monthly statements in case any of
the bills for the month’s charges have been lost.
Sheet No. 4 is an excellent ledger sheet for
the coal man. It permits the keeping of a large
number of entries on one sheet. The reader will
note that the charge refers to the invoice num¬
ber only, as each invoice contains all the neces¬
sary information, and no itemizing is necessary.
Statement Sheet No. 5 just shows the invoice
number. Where a customer buys considerable
coal during a month, office copies of the invoices
are attached to the statement for debtors to
check.
Sheet No. 6 shows the Coal Sales Record Book
used by M. N. Bedford & Company. There are
twenty-four columns and it contains a record of
every sale made during the month, at the end
of which time the totals are posted to their
proper accounts in the ledger. The reader will
note that this company carries a separate hard,
soft, Pocahontas and Blacksmith coal account.
M. N. Bedford & Company have found it just as
convenient to keep these accounts separate, and
to know at all times on which coal they are mak¬
ing or losing money. The cash sales are put
through the cash book at the end of the month,
and the charge sales journalized.
Sheet No. 7 is a sheet from the summary
book. This book is for weights and totals of
charge and cash sales.
GOAL SALES RECORD
CARTAGE CHGES
EGO
s T 0 V E
NOT
SOFT IpOCAHONTAS
BLOSS
Hd Sft PnC Ble 1915
T1(A
Qa
lb
Tlc\.
Wt.
C h|
;e
CSE
h
'Ic't
Wt.
Chp
9
Ca
jh
TIcM
Wt.
Oh,
59
Ca
ih
I’lc't
Wt.
Ch(
;e
Cas
1
Tic'
. Wt.
Chg
8*
b
00
1.50
Sep 6
12170
6000
12
00
1.99
.75
5
L2171
4000
14
30
.75
100
5
12 IX
2000
4
6 0
4
50
1.®
5
12 IT
4000
ID
00
1£0
.75
1.00
Sheet No. 6. Coal Sales Record.
No. 12]
THE BLACK DIAMOND
225
A coal purchase record shown by Sheet No. S
is also contained in the summary book, enabling
the clerk or dealer to obtain the information
he desires under one cover. At the end of the
season or year, the different amounts of coal are
totaled and checked against the amounts of coal
sold and stock on hand, to see if it reasonably
checks with the inventory.
All letters of M. N. Bedford & Company are
copied in an impression book ; this with their
bookkeeping system gives them a complete and
the parties doing their own hauling. Credit is al¬
lowed at the rate of fifty cents per ton ordinary
delivery and twenty-five cents a ton for any carry¬
ing job. M. N. Bedford & Company has one
firm doing all their delivering.
Summary.
Certainly there is much in the above system
that could be advantageously used in the system
of any retail coal dealer everywhere. In the hope
of securing as many different systems as possible,
we ask that every dealer, whether or not a sub¬
scriber of The Black Diamond, to send in sheets
or pencil sketches of the system and books he
is using.
Through the co-operation of the dealers, we
are confident that we will arrive at a system by
far simpler and more adaptable to retail coal
business than any yet devised. To do this, the
cooperation of retailers is necessary.
clear shaft. Obviously, therefore, the resist¬
ance of the smooth experimental gallery is
vastly less than that of the normal mine road
and less than that of the experimental mine
employed in the American investigations.
It is not surprising, therefore, to now dis¬
cover that the “one to one” mixture of stone
dust and coal dust found sufficient for safety
at Eckmeals is, according to Mr. Rice, usually
found inadequate for the same purpose in an
actual mine. It is not necessary to ask whether
the dust and the gas at Pittsburgh are more
sensitive than ours; it is sufficient to recognize
that the American conditions were more se¬
vere and more nearly like those which obtaiA
in the normal mine itself.
The object of our experimental stations is
not, as the Home Office staff appear to im¬
agine and as Dr. Wheeler actually stated at
the institution meeting, to prosecute the “ar¬
duous investigation of the phenomena of pure
coal dust explosions,” if by that expression
Dr. Wheeler means, as seems evident from the
context, explosions free from complicated con¬
ditions. Those comparatively simple phenom¬
ena can be predicted from theory alone. No
one questions the standard theory of chemis¬
try, and the Eskmeals reports have so far told
us little about “pure coal dust explosions”
which might not have been taken from granted
at the very outset. The real object of those
costly installations — if the authorities can be
brought to understand it — is not so much
concerned with chemistry of pure coal dust
explosions under simple conditions. It is prin¬
cipally concerned with the physical conditions
which surround the complicated case of the
mine explosion. Those conditions can never
be found in a smooth steel tube. They may be
more or less approximated to by erecting a
few posts or placing an annular flange within
the tube, but they cannot be duplicated by any
such crude methods. The rugged perimeters
and jagged surfaces must be reproduced as
they exist in the average roadways and rami¬
fications of the normal iuine. The recognition
of that fact by the American Bureau of Mines
accounts for the bewildering contradictions
which Mr. Rice’s account throws at Eskmeals,
where the fact was overlooked. And, in our
judgment, the recognition by the American
bureau of that vital fact endows their pub¬
lished results with great authority. Other¬
wise, there is little essential difference be¬
tween the results recorded from America on
the one side and from Europe on the other.
ff’hc “tentative point of view” held by the
American Bureau of Mines as to the nature of
the shock wave following the discharge of the
cannon may, however, assist the reader to
more clearly understand the philosophy of the
so-called retonation waves, which, it appears,
is still a mystery to some enquirers, although
the “kick” of a rifle is explained by the same
principle. Tlie retonation wave, in our view,
is simply the resultant of two opposite forces,
one, that of the shock wave due to the firing
of the cannon, and the other due to the back
pressjire of the exploding material, which,
like any other explosive, exerts equal force in
all directions, including that pointing back to
the seat of origin. As Mr. Rice himself says,
though he fails to make the application, “If the
pressure of an explosion does not materially
rise in its course, retonation waves are not
detected.” Of course not; retonation cannot
occur until the back pressure of the advancing
explosion exceeds the opposite pressure of the
original shock wave initiated by the firing of
the cannon.
Prom the Iron and Coal Trade Rctnew of Lon
don.
New Consolidation Plants.
The Consolidation Coal Company of Fairmont,
W. Va., has appointed the Allen & Garcia Com¬
pany, Chicago, Ill., constructing engineers, in
charge of the design and construction of the
tippits and screens, and also electrification of the
two new mines being sunk by the coal company
at Helen’s Run, West Virginia.
These two mines will have duplicate equipment
and are being designed for an average output of
4,000 tons per day. The shafts are to be curbed
with concrete from surface to sump, with steel
buntons, guides, etc. The tipples are to be thor¬
oughly modern with balanced shaker screens,
Lenix drive, apron feeders, picking table, load¬
ing booms, etc., and the tower is the well-known
“A. & G.,” “three-legged” type. The mines will
be electrically operated, the power furnished by
the coal company from their large station located
about four miles, from the mines and delivered
at the mine at 22,000 volts stepped down to 2,300.
The hoists at the main shafts are to be Ilgner
type with Ward-Leonard control and cylindro-
conical drums. The air shaft hoists are to be
steam operated because of the necessity of using
steam to drive the fans and thereby secure ex¬
haust steam to humidify the air at the down cast.
The air shaft at each mine is to be equipped
with two duplicate independent fans to insure
continuity of air supply and guard against break¬
down. There will also be steel towers at air shaft
and cage for men and material.
The shafts are now down about 200 feet, with
300 feet to go and it is expected to begin erec¬
tion of the surface plants early in the spring, but
the Allen & Garcia Company will probably have
the desi.gns and specifications ready for bids late
in the fall. The two new mines will cost close
to a million dollars, and with their modern equii)-
ment designed for efficiency, permanence, strength
and perfect preparation of coal, will be examples
of the best type of modern American coal mines.
E. A. Fellows, formerly with the Great Lakes
Coal & Dock Company, has become identified
with George M. Space & Son, Lumber Exchange,
Minneapolis.
> GOAL PURGUASE REGORD 1915
HARD
DATE
FROM
KIND
VIA
I'OHS
PR.
AMOUNT
?R.RT.
AMT.
INS
PAID
Apr.l
U.S.Goal Go
Egg
STR
MAT
700
5.90
4830.00
.60
350. 0(
laoo
Apr. 10
SOFT
AprlO
Amer.Coal Cc
54
Alpena
700
2.75
1925.00
.60
420. QC
2.5C
1 Apr. 10
POCA,
Juni
Poca CoalGo
Lp
Pa .Gar
41850
40
2.25
90.00
2.. 35
94S)0
June 10
BLOSS
Jun6
Bloss Goal U5
M.R.
Pa. Gar
L08150
40
1.95
78.00
2,25
94 .0(
) ---
June 10
Sheet No. 8. Coal Purchase Record.
correct record of every transaction made and
any correspondence regarding it.
The reader will note that on the cartage ac¬
count, the charge against each ticket is extended
against the proper account, and at the end of
the month each column totaled and charged to
respective accounts and credited off in total to
The American Coal Dust Investigations
The account, given by Mr. George Rice of
the American coal dusL investigations in his
paper read before the institution of Mining
Engineers, of which an abstract appeared in
our last issue, is of unusual importance. It
recounts experimental results which, for the
first time, we believe, have been obtained un¬
der conditions which duplicate those of the
actual commercial mine. Without disparaging
the excellent work done, first at Altofts and
then at Eskmeals, in experimental galleries, it
is manifest that the long, straight, smooth
passage of the experimental gallery furnishes
very different conditions from those afforded
by the rugged perimeters and constantly vary¬
ing cross-sections observed in any considerable
length of normal mine road.
It is remarkable that this defect in our own
costly experimental stations has not been
more clearly perceived and more loudly con¬
demned by men who claim to be at once
practical and scientific. It is remarkable be¬
cause it has long been recognized that the
violence of a so-called dust explosion increases
with the resistance it finds in its path, owing
to the increase of pressure thus generated.
It is also common knowledge that the resistive
force of friction in a rough mine road is many
times greater than that found in a smooth.
S D M M A R T
226
THE BLACK DIAMOND
[Sc])tcml)er 18
August Anthracite Shipments.
PiiiLADELi’HiA, SeplemlxT Hi. — In August the
anthracite shipments were tii!' tons, as com¬
pared with tons in same mouth last year,
a decrease of laiJ.itlii tons. I'or the eight months
ended August I! I, lt)l.'), the shipments were 41,-
S(i(),:j4() tons, as against 4:i,s:'l,:!8‘)
corresponding period of 1914,
91)1, 049 tons.
The report of the anthracite bureau of infor¬
mation is as follows : ,
lluckwlieat No. t
aiul I.arger Sizes.
tons in the
decrease of 1,-
Pliila. it keading k. \V
Leliigh Valley k. k....
C'eiitral k. k. of N. J
Dela., l.acka. it W. k.
Ilela. S: Hudson Co...
Pennsylvania k. k...
Erie k. k .
N. V.. O. & VV. k. W
k..
Pliila. S.' keading k. W .
Leliigli N'alley k. k .
Central k. k. of N. J .
Dela., l.acka. it \V. k. k .
Dela. it Hudson Co .
Pennsylvania k. k .
Erie k. k .
N. Y., O. it VV, k. W .
Pliila. & keading k. W
Eeliigli Valley k. k...
Central k. k. of N. J..
Dela., l.acka. S: VV. k.
Dela. it Hudson Co...,
Pennsylvania k. k .
Erie k. k .
N. Y., (). it VV. k. VV.
K.. . .
Pliila. it Reading k. VV.
Leliigli Valley k. k....
Central k. k. of N, J..
Dela., l.acka. it VV. k.
I)ela. & Hudson Co....
Pennsylvania k. k .
Erie k. k .
N. Y., O. it VV. k. VV..
Phila. it
Central k. k. ot N. .1....
Dela., l.acka. it VV. k. k..
Dela. it Hudson Co .
Pennsylvania k. k .
Erie k. k .
N. Y., O. it VV. k. VV -
VV..
k.
Pliila. it keading k.
Leliigli V'alley k. k..
Central k. k. of N. j.
Dela., l.acka. it VV. k.
Dela. it Hudson Co .
Pennsylavnia k. k .
Erie k. k .
N. Y., (). it VV. k. VV...
August,
August,
1915.
1914.
721,013
790,372
913,913
958,790
494,841
514,473
714,047
089,938
r)99,29S
530,224
354,087
431,943
r)72,0.)S
000,817
120,751
170,714
. 4,491,208
4,093,277
Sizes
Below
Huckwheal No. 1.
August,
August,
1915.
1914.
125,049
114,271
115,808
120,370
118,880
122,994
145,321
129,910
131,839
88,838
72,131
65,636
118,759
133,533
11,230
14,908
839,023
790,400
Total Shipments.
August,
August.
1915.
1914.
847,202
904,043
. 1,029,721
1,079,172
013,721
037,407
859,308
819,848
731,137
619,002
420,818
497,579
690,817
734,350
131,987
191,022
5,483,743
Buckwlieat No. 1
and Larger Sizes.
Year.
Year.
191.5.
1914.
0,220,271
0,785,488
7,518,800
7,445,248
4,137,282
4,703,052
5,007.228
5,200,928
4,471 ,565
4,038,731
3,193,077
3,581,049
4,294,380
4,507,011
1,193,528
1,377,004
.30,030,143
37,759,711
Sizes
Below
Buckwheat No. 1
Year.
Year.
1915.
1914.
879,816
982,708
835,374
815,224
., 873,280
972,393
903,523
1,044,197
761,167
007,888
573,245
539,778
803,523
874,567
134,209
164,863
. 5,824,197
6,061,678
Total .Shipments.
Year.
Year.
1915.
1914.
. 7,100,087
7,708,250
. 8,354,180
8,200,472
5,735,443
. 5,970,751
0,245,125
. 5,232,732
4,700,619
4,121,427
5,441,578
. 1,327,797
1,542,467
.41,800,340
43,821,389
Coal on Hand at Tidewater Sliimiing Ports —
August 31, 191.5 . (iS.S.tSe tons
July 31, 1915 . (>3(>,384 tons
increase . 17,112 tons
France’s Coal Shortage.
In a recent issue of the Kaihvay Age Gazette,
Walter S. Hiatt, a special Huropean correspond¬
ent, analyzes the coal situation of Europe and
comes to the conclusion that .American coal will
ultimately ease the coal shortage of h'rance. Mr.
Hiatt believes that this will happen despite the
high cost of ocean transportation, and will also
have the effect of keeping down prices of coal
in Europe.
Mr. Hiatt iioints out that llelgium normally
iiroduces 20,000, OOP tons of coal annually, which
is more than enough for home consumption.
France normally produces 40,000,000 tons of coal,
hut consumes (iO, 000, 000. The coal which repre¬
sents here excess of consumption over produc¬
tion normally conies from the English and Bel¬
gian coal fields. .At the present time all the
coal du.g in Belgium is mined c.xclusively for the
Herman interests, and b'rance’s proiluction he-
cause of (ierman occupation of the mines in
northern h'rance, has been cut to 20,000,000 tons.
Wbere h'rance will get the 40,000,000 tons of coal
which constitute her shortage this year is the
(luestion which is worrying the Frenchman as
winter draws near.
The same grade of coal which costs .American
interests $1! a ton, Mr. Hiatt points out, is cost¬
ing the h'rench railroads $10 to $12 a ton. The
French railroads are using twice as much coal
in war times as in ordinarj’ times. They will not
be the first sufferers in the coal famine which
is facing the continent. The jirivate consumers,
who at present are unahle to .get deliveries at
any price, will he the sufferers, Mr. Hiatt says.
The general effect of the European coal famine
may be felt in this country, too.
'fhe situation is thus summarized by Mr. Hiatt;
“With the war expected to last until next year,
the coal shortage in Europe is going to be a dis¬
tressing subject this winter. It means that the
railroads will have a hard time because of the
increased cost of coal ; it means that many fam¬
ilies will have to go without heat ; it means that
coal may be sli.ghtly higher in price in the United
States if the American coal merchants are able
to deliver all the coal they have contracted to
deliver in Europe. If .American railroad terminal
methods and machinery for handling coal ra])idly
and in large quantities existed at Italian and
I'rench ports, .American coal merchants would
this year sell upward of ,)0,000,000 tons.”
Italy and Russia will also be sufferers as a re¬
sult of the shortage, Mr. Hiatt says. Of all the
countries at war, England, Germany and .Austria
alone will be unaffected to any pressing degree.
Italy produces little coal and Russia produces 30,-
000,000 tons. Germany’s average annual pro¬
duction is 200,000,000. She will produce enou.gh
for home consumption, but will not approximate
the average figures. .Austria’s production will be
sufficient for home consumption.
“The railroads of Germany certainly will not
suffer in their war activities from lack of coal,”
says the article, “since they consume in normal
times but slightly over 41,000,000 tons per year.
The increased consumption of coal due to the
intricate war movements of trains will not raise
this figure to more than 2.5,000,000. In Russia,
however, which because of the blockaded seas,
has been forced to bring its imports of all kinds
of war materials from the Far East on the Si¬
berian Railroad, the coal (piestion will further
hamper the railroads, which have been working
none too smootbly.
“The situation in h'rance is typical of many
'European countries. While h'rance has of course,
all the seas open to her, to date she has been
unable to imijort or obtain at reasonable prices
the quantity of coal required either for her rail¬
roads or for her civil population. .As early as
last December coal for domestic uses almost
doubled in jjrice, goin.g from $(> to $11 a ton,
and the majority of families went without heat
rather than pay the extra price. The railroads
were not seriously hampered in this respect be¬
cause of supplies on hand, and the situation was
eased somewhat later in the winter by English
imports.
“The h'rench railroads normally consume
aljout fifteen per cent, or nearly 9, (KlO, ()()() tons
of the total of (lo.ooo, ()()() required each year in
h'rance. The other eighty-five per cent is nor¬
mally distributed as follows: Private use, twenty
per cent; industries and manufactures, twenty-
ci.ght and six-tenths per cent; gas factories, seven
and one-half per cent; mine industries, eight and
nine-tenths jier cent ; metal factories, seventeen
and nine-tenths per cent ; tugboats, canal barges
and ships, two and one-fifth per cent. This year
the railroads will consume about twice the normal
(piantity because of the necessity of rapid quick
movements of troops which require more than
the normal number of engines, either attached
to trains or else always held in readiness for
unexpected movements.
“In this connection, as a curious fact worthy
of note, I counted one day recently in the Paris
yards of the Western railroad no less than forty-
five locomotives, with steam up and merely held
in reserve. While a German attack on Paris, or
even a general movement to break through the
lines of trenches fifty miles from Paris, is no
longer plausible, the military authorities are to¬
day ready for any emergency. For this reason
they hohl in reserve an army at Paris variously
estimated at from 100, 000 to 300,000 men, ready
either to defend Paris proper or to be launched
rapidly out of Paris on a few hours' notice to
any part of the trench line that may be over¬
whelmed.”
Ohio Rate Situation Is Perplexing.
Coi.UMiiUS, Ohio, September 15. — {Special Cor¬
respondence.) — Ohio operators who are behind
the case now pendin.g before the State Utilities
Commission to secure a reduction on intrastate
freight rates on coal profess skepticism on the
new attitude of the railroads. The announcement
made a few days ago by M. J. Caples, vice-presi¬
dent of the Chesapeake & Ohio, that the differ¬
ential between the Ohio and West A^irginia coal
will be voluntarily increased from twenty-five to
forty cents a ton by the railroads, it is claimed,
is a .grand-stand play. The group of operators
in question say the move has no other purpose
than to confuse the issue now before the com¬
mission. They state further that the fight for
state regulation of rates will go on regardless
of such influence.
“The railroads are insincere in this action,”
states a prominent Hocking operator. “'I'he pro¬
posal to increase the differential by raising West
Virginia rates instead of lowering those of Ohio
is an expedient of their original attitude to take
the ciuestion out of the hands of the state au¬
thorities and pass it up to the Interstate Com¬
merce Commission. They know that any attempt
to raise rates will bring them in conflict with
that tribunal, and that the West A'irginia op¬
erators will fi.ght the matter to the bitter end.
It was foreseen by the railroads, when the an¬
nouncement was made, that West Virginia would
enjoin, as the producers of that state are pre¬
paring to do, according to word received from
Charleston. The new rates, even if allowed to
stand by the Interstate Commerce Commission,
could not be ratified under a year or two, by
wbicb time the present spirit of fight would he
taken out of the Ohio operators, in the view
of the railroads.
“Moreover, the issue before the Ohio Utilities
Commission is not alone for an increase of dif¬
ferential, but the lowering of coal rates. They
are too high, and are working injury to the
industrial develo])ment of the state. The real
point is that if the Hockiag Valley railroad has
found it profitable for years to haul West Vir¬
ginia coal across the state to Toledo at the ex¬
isting rate for that service, it should he made
to give Ohio coal the same haul at a like rate,
or somewhere near it, instead of charging a dou¬
ble rate for the latter. This should logically come
by lowering Ohio rates. After the ruthless dis¬
crimination in the past, it is not reasonalile to
believe that the railroads have suddenly become
conscience-stricken over unfair differentials to the
extent that they would voluntarily seek to adjust
same. The real fact of the matter is that the
Supreme Court decision of a few months a.go
upholding the authority of the Ohio Public Util¬
ities Commission to regulate freight rates within
the state has given Ohio operators an effective
weapon for self-defense. I'he railroads realize
this, and may be expected to employ every form
of subterfuge to stave off the inevitable.”
On the other hand, some local operators are
inclined to look upon the action of the railroads
as having been taken in good faith, althou.gh it
is felt that the differential should he fifty, instead
of forty, cents, ft is believed that under the
most favorable circumstances, providing the new
rate should not he enjoined, the change could
not he effected on lake coal until about the first
of January. The Interstate Commerce regulations
forbid changes of through coal rates during the
lake season. The announcement of the advance
of West Virginia coal rates on tonnage carried
by Ohio roads came after a conference of rail¬
road men at Washington, D. C., which was at¬
tended by Mr. Caples. His headquarters are at
the general offices of the Hocking Valley railroad
in this city.
The corps of experts appointed by the Ohio
Utilities Commission to .go into the records of
this carrier for data bearing upon the Lhiited
Mine Workers’ case against the railroads, with
the Sunday Creek Company as intervening plaint¬
iff, are still at work and will he ready for the re¬
sumption of the hearing on October 5.
227
No; 12
American Coal in the Canaries.
(Consul (leorge K. Stiles, Teneriffe, Canary Islands,
July 27.)
The war has thrown open to American pro¬
ducers of the finer .grades of Ininker coal two
of the greatest coaling stations of the .Atlantic —
Tenerifife and Las Palmas, Canary Islands. Coal
to the value of $.'),47.-),()()0 was supplied by the
Canary Islands to ocean traffic during 1914, and,
despite the reduction in the world’s commercial
tonnage, the present year is reported^ by coal
dealers to have shown little falling off.
llefore the war American coal exporters found
it impracticable to make any entry into this
trade. Only during the existence of serious coal
strikes in England have car.goes of Arnerican
coal been brought here from time to time to
supply the temporary lack of British-produced
coal.
This year the increasing difficulty m securing
Cardiff and Durham coal has enabled enterpris¬
ing -American export houses to send here a num¬
ber of cargoes of high-class steam coal. This
coal is reported to have .given perfectt satisfac¬
tion, but thus far the big buyer still persists
in the attitude of considering American coal as
available in the Canaries only for emergency use.
It will be necessary, then, for -American pro¬
ducers to make unusual efforts to secure a per¬
manent hold on this trade.
Full practical details of a minute character
are essential for an intelligent effort, but it is
e.'iually necessary that American coal exporters
should primarily understand that the English
mine owners are financially interested in the local
firms. Usually dealers here are mere departments
of London firms, with coaling branches in many
parts of the world. These London firms are
either mine owners or closely affiliated with such
enterprises.
It may prove necessary, therefore, to secure
direct representation of -American firms in Ten¬
eriffe and Las Palmas before -American coal vvill
be given a fair chance to show its superiority
at the same prices asked for British coal.
Even without such thoroughgoing methods
there now exists the opportunity to export Amer¬
ican bunker coal here. The contract price of
coal at this time last year was $7..')0 per ton for
the high class Cardiff article. This coal is now
bringing $14. .')(), and dealers admit that the pros¬
pects are rather for an increase than a decrease
in prices.
Under such circumstances -American bunker
coal can be laid down in Canary Island ports at
an undoubted advantage over the Welsh article.
.As a result, approximately .50,000 tons of this coal
were imported during the first six months of
l!)l.'), at a saving (so I am informed by the man¬
ager of the company importin.g most of it) of
ai)out $1 per ton as compared with the British
product.
This represents approximately twenty per cent
of the coal imports into the Canaries for the
first half of 1915. -As against an importation
of absolutely no -American coal in 1914, it shows
strikingly what a consistent comprehensive effort
could bring forth for the exporters of the United
States.
The following practical details of port condi¬
tions. methods of transferring cargoes, port
changes, customary credit terms, etc., will enable
exporters to figure on the best methods to em¬
ploy in going after this traffic.
The coal tonnage imported into Teneriffe dur¬
ing 1914, according to combined estimates of
the larger dealers, was 2:19,000 lon.g tons ; that
of Las Palmas was somewhat larger, being esti¬
mated at 271,000 long tons.
Both Teneriffe ami Las Palmas are deep-water
ports, the depth in Teneriffe Harbor ranging
from twenty fathoms up, while at Las Palmas
the depth is far greater than is necessary for
tile lar.gest steamers known.
Cargoes range from 2,000 to 7,000 tons, and
other than full cargoes are rarely received here,
exceiit a few shipments of gas coal for the
use of the Teneriffe and Las Palmas gas com¬
panies, which buy occasional small lots. -Anthra¬
cite is also occasionally purchased, but the trade
is comparatively unimportant, being estimated at
less than five per cent of the entire traffic. Coke
is nractically never imported into this market.
The unusual manner of unloatling coal cargoes
is to have the coal shoveled into sacks weighing
about 200 pounds each. These arc transferred
to lighters by the derricks of the collier at the
rate of five sacks to each shift of the derrick,
or aoproximatelv one-half ton to each movement
of the crane. The ordinary rate of unloading is
THE BEACK DIAMOND.
250 tons per day, but as high as 000 tons per
day have been unloaded. This could lie doubled
by night shifts if exporters desired to economize
the time of the collier’s charter.
-All coal in Teneriffe and Las Palmas is un¬
loaded into lighters, and exporters should liase
their prices on contracts requiring them merely
to deliver their cargoes into lighters. The local
dealers all maintain large forces of men to
unload and handle the coal they purchase, and a
section of the port is occupied by scores of
lighters for this service.
The storage depots on shore at Teneriffe ap¬
proximate between 60,000 and 70,000 tons, and
practically the same is possessed by the coaling
firms at Las Palmas.
Foreign or -American colliers are used indiffer¬
ently in the trade, hut the lack of this class of
vessels fiying the -American Hag is shown by the
fact that only one such has visited the Canary
Islands during the first half of 1915.
Freight charges for collier service from Eng¬
land before the war were about 10s (.i;2.4.3) per
ton, but have not more titan doubled. As high
as 28s ($6.86) per ton was paid between Cardiff
and Las Palmas early this year, but offers at 20s
($4.89) were reported last month.
Local prices on the open market were quoted
at $14 early in June, and by the middle of July
had risen to $14.50. These prices are c. i. f. at
the Canary Islands.
The larger houses here are, as previously indi¬
cated, actually branch houses of London firms
and know little of the credit terms obtained by
their buying representatives, who should be ad¬
dressed in the central offices in England. No
-American firm has any branch office (so far as
can he learned) in either Teneriffe or Las Palmas,
but one special brand of well-known American
steam coal is said to be represented in Las Palmas
l)y a British firm, which has imported much of
the -American coal bought during the present
year.
Fewer Mine Accidents.
Harrisburg, Pa., March 16. — Fatal accidents in
the bituminous coal field in 1914 showed a de¬
crease of thirty-two per cent, according to a sum¬
mary of reports just issued by the State De¬
partment of Mines, the number last year being
41.3 as compared with 611 the previous year.
According to the official figures the production
of soft coal last year was 145,884,530 or 27,081,129
less than in 1912, the number of employes last year
being 195,929 against 189,090 in 1913. The amount
of coal produced per fatal accident last year was
353,207 tons against a rate of 283,086 tons in 1913,
while the fatalities per thousand employes last
year was 2.10 against 3.22 in 1913.
Fatalities in the bituminous fields were less last
year than in any year since 1897, which is at¬
tributed at the department to closer supervision
exercised by State inspectors and the operation
of the soft coal mine code adopted in 1911.
Details of the summary show that the acci¬
dents from falls of rock and car accidents
amounted to 84.96 per cent and a special effort to
reduce these classes of accidents has been ordered
by Chief Roderick, mine foremen, superintendents
and inspectors being ordered to enforce the most
stringent rules and to secure discipline among
the men. The percentage of fatalities from falls
of rock, coal, roof, slate, etc., was 61.21, while
from cars 23.75, from gas, dust explosions and
suffocation 2.11, by electrical accidents 6.33 and
all other causes 6.60.
Daniel Willard, president of the Baltimore &
Ohio Railroad, was in New York on Tuesday,
and gave out the following statement ; “All our
cars are in use for the first time in two years —
since the fall of 1913. Our traffic has increased
.gradually for the last four or five months above
preceding months, and for the last two months
has been ahead of a year ago, but not ahead
of two years ago. Agricultural conditions
throughout the B. & O. territory all seem to be
fully up to, if not above, the average for this
season of the year, and the outlook in that direc¬
tion is good. The ore movement from the lakes
is heavy, stimulated, of course, by the renewed
activity in the steel business. 1 am optimistic —
within reasonable bounds.”
The differential between the eastern Ohio coal
rate and that of West Virginia, under the propo¬
sition made by the railroads recently, is thirty
cents. Operators and shippers say that there
should be a general differential of forty cents
to bring about an equality. If the increase is not
sufficient to enable the Ohio operators to put
their coal on the market on a Itasis of equality
with that of West Virginia, nothing is accom¬
plished by tbe change, they say. Should the
differential he one cent a ton too small, it had
just as well be more as far as tbe results are
concerned. Tbe increase to this market will be
aliout five cents a ton, whereas it should be be¬
tween ten and fifteen cents to accomplish the
purpose desired by the producers.
Coal and Coke Movements.
The Department of Commerce, through the Bureau of Foreign and Domestic Commerce
at Washington, has just issued the following statement of tbe movement of coal and coke
over thirteen leading Eastern railroads during J
and 1915;
Class and Railroads — Antliracite —
B. & O.. (a) .
C. & O. (a) .
F-ric ( b I .
Pennsylvania (a, c) .
I'irginian (a, b) .
Total, ') roads.
Bituminous —
B. & O. (a) .
B.. K. & P. (a, b).
B. & Susci. (a, b) . .
C. & (). ‘(a) .
“ (c).
F-
II. & B T. M, (a, b).
N. V. C. R. R. (Buffalo and East) (b).
Fennsvlvania (a. c) .
P. L. E. (a. b)...
P., .S. & N. (a. b).
Virginian (a, b) . . . .
Western Maryland..
Total, 13 roads . 13
Coke —
B. & (). (a) .
B., R. S: P. (a, b) .
B. and Snsii. (a, b) .
C. & (). (a) .
N. & W. (a, b) .
Pennsvlvania (a. c) .
P. S: L, E. (a, b) .
Western Maryland .
Total, 8 roads.
Total. Coal and Coke, 13 Roads —
Total. G montlis . .
(a) Includes coal received from connecting lines.
coal bauled free. ... . ,
NOTE. — Tbe Southern Railway Inuiled 231.712 short tons of bitutninous coal during May, 1!)1.', and 1,328,51()
short tons during the five months ending May 31, liH.).
: and six
months ending June
:J(), 11)14
Tu ne -
0 Months En
ding Tune 30.
1914.
1915.
1914.
1915.
— Short Ton?. —
— Short Tons. —
78,019
79,700
711,784
090,594
1,()(>9
1.358
7,893
6,348
820,750
770,200
4,468,839
4.196,731
8.55,247
843,053
5,054,277
5,423,467
84
136
342
1,701,775
1.700,437
10,842,929
10,233,462
2,517,909
3.051,305
10,234,037
14,781,587
552,867
022,873
3,802,002
3.635,333
70, ,537
72.647
561,309
510,470
1,822.962
2,024,639
9,072,008
10,118,0)6
7,443
5,340
40.120
50,068
02,410
00,151
528,035
459,927
004.937
(>83,077
3,023,543
4,184,311
2,31.5,950
2,713,277
12,516,321
13,761,153
3,897,544
3,004,703
23,555,182
20,261,777
975.158
998.200
5,457,907
4,337,45.3
181.711
102,400
1,196,520
1,002,139
321,181
301,932
2,027,720
1,898,071
225,057
260,653
1,520,849
1,604.677
13,555,078
14,627,803
81,104,759
7.’). 000, 228
298,237
329,130
1.839,801
1,0’>7.001
24,207
34,264
142,001
201,007
35,294
4 9,. 5 15
164.803
293,728
29,392
22.791
207,755
1 10.044
87,921
77,528
580,008
444,294
793,463
990.4 70
5,227,385
4.998,919
394,508
440,120
2,69.5,577
2,237.1.56
4,001
4.097
38,505
21,586
1.007,023
1,953,837
10,895,658
9,933,795
. . IS. 157.998
1.5,685,798
. . 15.446,830
13,702,789
. . 20,233.213
1 4.943.124
. . 15,497,444
10,070.049
. . H«.r>-^3 385
I7.149.#*««
. . 16.984,476
18.282,077
. 102. 84 3. 3 16
95,833.50-)
(b) includes company’s coal. (c) Does not include company’s
22S
THE BLACK DIAMOND.
Pennsylvania Car Situation
Phii.abei.phia, September 16. — {Special Corre¬
spondence.) — With the car shortage that was
noted a couple of weeks ago in the Central Penn¬
sylvania district there has been considerable at¬
tention — more, in fact, than for a year iiast —
paid to the coal carrying facilities within this
state.
Of [irincipal interest was the report that came
from Pittsburgh of a change in the distrilnition
of the coal zones of this state. Late last week
these zones were offered by the Pennsylvania
railroad to the Interstate Commerce Commission
as a means of equalizing several of the rates that
have been in force and have been a bone of con¬
tention among the operators. Herewith are shown
the various changes that have been offered by this
company and which the Interstate Commerce
Commission have taken under advisement.
Zone one would comprise the Huntingdon,
Broad Top, Tyrone, Clearfield and Snow Shoe
sections and the operations on the main line to
and including those at Gallatzin.
Zone two would extend from Gallatzin to
Derry on the main line and include the Indiana
branch.
Zone three would extend from Derry to Jean¬
nette and include all mines now rated as local
to Latrobe and Greensburg and probably the mines
between Blairsville and Kiskiminetas Junction.
Zone four would extend from Jeannette to Pitts¬
burgh and comprise all the mines on the Monon-
gahela division and east of the Allegheny river
and as far north as Kiskiminetas Junction.
Zone five would extend from Pittsburgh down
the Ohio river and include the operations of the
Panhandle section, together with those on the
west side of the Allegheny river as far north as
Kiskiminetas Junction.
For zone one eastward to Philadelphia $1.3,5 per
gross ton f. o. b. vessel, the commercial rate to
the same point to be $1.60; zone two eastbound
rates to be ten cents in excess of those of zone
one ; zone three eastbound rates to be twenty
cents in excess of the basing rates ; namely, those
of zone one; zone four eastbound rates to rise
forty cents, while for zone five the raise shall be
forty cents on eastbound shipments.
Except in the case of zone four there is little
change in the rates as they now apply, the big
feature being in the definition and the straighten¬
ing of the zones.
On the Pennsylvania railroad orders have been
given to put every shop car into repair and place
them on the lines as soon as possible. At the
end of the first week of this month there were
16,663 cars in the shops undergoing repairs.
These figures are for the lines east of Pittsburgh.
The report of January 4 of this year showed that
there were 30,968 cars idle in the shops. In the
fall of 1912 was the last acute car shortage on
the Pennsylvania lines east of Pittsburgh. It is
said that the coal storage by this road was also
for the purpose of releasing as many coal cars as
possible from the actual service of the company.
With a large number of new cars that have been
built during the present year the equipment will
be in better shape in the volume than it was at
that time. Just what the increase in available
cars are in round numbers has not been disclosed,
however.
Another set of striking figures on the cpal
movement at the present time is furnished by the
monthly bulletin of the railway association. Fol¬
lowing are the figures showing the actual number
' of idle coal cars in this country as of the report
of September 1. It shows that the largest num¬
ber are now out on the tracks that has been
reported since October of last year.
Ttate
Sept. 1, 1915.
Aug. 1, 1915..
July 1, 1915..
Tune 1, 1915. .
May 1, 1915..
April 1, 1915.
March 1. 1915
Feb. 1, 1915..
Nov. 1, 1914..
Oct. 1, 1914..
Sept. 1, 1914.
Number of
idle coal-cars
.37,587
74,074
83,541
. 105,779
. 119,415
. 145,030
. 158,279
. 133,99!)
04.345
37,224
40,075
National Coal Associaiton.
Announcement is made by James A. Ballard
of Detroit, Michigan, president of the National
Coal Association, of the appointment of several
committees who will have general charge of the
respective departments for that organization.
Practical work has already been inaugurated
by the National Coal Association. Two leaflets
have so far been issued for general distribution
one on “The Cause of Smaller Profits,” and the
other on “The Jobbers’ Cost of Doing Business,”
while three others are now in the hands of the
printers. One of these relates the harmful effects
of price-cutting to all concerned, another gives
the unreasonable demands to be presented by the
anthracite miners to the operators next April,
while the title of the third is “Why it Pays Re¬
tailers to Know Their Costs.”
The personnel of the committees so far ap¬
pointed are as follows :
.STANDARD SYSTE.M OF ACCOUNTING
H. L. -Sbepard of Sbepard & Ilutcbison, coal trade ac¬
countants, Chicago, ebairman.
A. J. Moorsbead, president, Madison Coal Corporation,
St. Douis, Mo. (mining).
Homer 1). Jones, manager. Western F'nel Company,
C hicago, HI. (retail).
George E. Hutebison of Sbepard & Hntcbi.son, coal
trade accountants, Chicago (wholesale).
J. G. Tattersall, president, Pennsylvania Retail Coal
Merchants’ Association, Trenton, N. J.
J. R. Reetam, Philadelphia, Pa.
COST OF HANDI.ING COAL
J. R. Mansbeld, Chicago, III., chairman.
r. P. Rryan, secretary, Gray-Rryan-Sweeney Coal Com¬
pany, Kansas City, Mo.
Robert J. Webster of Webster-IIarvey, Ltd., London,
Ontario.
G. U. Kierstead, City Coal Company, Hartford, Conn.
C. L. Moore, Kankakee, Ill.
^ F. A. Dawes, president. Western F'nel Association,
Spokane, Wash.
EDUCATIONAL COMMITTEE
Sydney A. Hale, Western representative. Coal Trade
Journal, Chicago, HI., chairman.
George H. Cooper, Fittsheld, Mass.
J. R. Williams, Knoxville, Tenn.
W. C. Adams, G. S. A., Alabama F'nel & Iron Com¬
pany, Birmingham, Ala.
(F. M. Callander, Painesville, Ohio.
C. Frank Williamson, Media, Pa.
LECTURE BURFIAU
W illiam A. Clark, Northampton, Mass., president. New
England Coal Dealers’ Association, chairman.
F'enwick C. Atwill, president, Atwill-Makemson Coal
& Coke Company, Chicago.
(Fharles K. Scull, Philadelphia, Pa.
Charles F. Kerchner, president. Hall Bros. S: Co., Ralli-
inore, Md.
J. Arthur Strunk, Reading, Pa.
Arch Coleman, president. City FTiel Company, Minne¬
apolis, Minn.
D. L. Tuttle, sales agent, P. & R. Coal & Iron Com¬
pany, Buffalo, N. Y.
PRESS AND PUBLICITY
George H. Cushing, Chicago, Illinois editor. The Black
Diamond, chairman.
F'. W. Saward, New York City, general manager. Coal
Trade Journal.
I. C. Cuvellier, Minneapolis, Minn., editor. The Coal
Dealer.
H. J. Straub, Pittsburg, Pa., editor. The Coal Trade
Bulletin.
A. J. Casey, Chicago, Illinois editor, American Coal
Journal.
A. T. Shurick, New York City, representing The Coal
Age.
LOCAL ORGANIZATIONS
H. C. McKinney of Midland Coal Company, Kansas
City, Mo., chairman.
B. F. Nigh, secretary, Michigan, Ohio, Indiana Coal
Association Columbus, Ohio.
H. L. Laird, secretary. Northwest Trafhc Bureau,
Minneapolis, Minn.
I. Tv. Runyan, secretary, Illinois and Wisconsin Retail
Coal Dealers’ Association, Chicago, Ill.
Wellington M. Bertolet, secretary, Pennsylvania Re¬
tail Coal Merchants’ Association, Reading, Fa.
Susquehanna Changes.
New York, N. Y., September 16. — (Special
Telegram.) — George H. Bresset has resigned as
New York sales manager of the Susquehanna
Coal Company, which position he has filled since
this company began business.
He is succeeded by Walter Peterson, who until
recently was with the Staples Coal Company. Mr.
Peterson has had a long association with the
Susquehanna Coal Company and the selling or-
.ganizations that it succeeded. He began his coal
career with the Franklin Coal Company, which
was afterwards taken over by Stickney, Conyng-
ham & Co. When this firm was succeeded by the
Susquehanna Coal Company, he went to the
Philadelphia office, later going with Pittsburgh
Coal Company at Pittsburgh, where he remained
five years. He then came east and has been con¬
nected with the Staples Coal Company until his
present appointment.
^ F. J. Milholland, general sales manager of the
Clyde Coal Cornpany, is renewing his youth at
his former home in Carrey, Ohio, on a vacation
trip. Mr. Milholland will visit lake points in the
interest of his company before returning to
Pittsburgh.
On Thursday workers on coal iiiers at Eliza-
Iiethport and Port Johnston went on a strike,
tying up these piers, which handle anthracite al¬
most exclusively.
[September 18
Virginia Retail Association.
The organization of a Retail Coal Dealers’ As¬
sociation in Virginia was recently brought about
at a meeting held at Lynchburg, Va., on July 21,
which over fifty dealers from different sections of
the state attended.
Officers elected for the first year are as fol¬
lows: J. H. Hill, Norfolk, president; F. S.
Diuguid, Lynchburg, first vice-president ; R. L.
Peerman, Danville, second vice-president, and H.
W. Harris, Roanoke, secretary and treasurer. A
photograph of Mr. Harris is shown herewith.
The interest and enthusiasm displayed at the
first meeting vouches for the success of the as¬
sociation in the future, and that no doubt this
association will prove the means of accomplish¬
ing many benefits for the coal dealers in this
state.
The declarations of purpose as adapted by the
association is as follows :
‘We realize the necessity of the retail coal
dealer in every community and we are inter¬
ested in the promotion of the general welfare and
the perpetuation of the retail coal business.
“We recognize the right of every person, part¬
nership, or corporation to establish and maintain
as many retail yards as he, they or it may see fit.
“We recognize the right of the mine owner,
wholesaler and shipper to sell coal in whatever
market, to whatever purchaser, and at whatever
price they see fit.
“We also recognize the disastrous consequences
which result to the legitimate retail coal dealer
from direct competition with wholesalers and
shippers and we appreciate the importance to the
retail dealer of accurate information as to the
nature and extent of such competition where any
exists.
‘■Recognizing and appreciating the advantage of
co-operation in securing and disseminating any
and all proper information for our mutual con¬
venience, benefit and protection, we have organ¬
ized this association and have adopted the fol¬
lowing articles for the government of our affairs.”
Norfolk was selected as the next meeting place,
which meeting will be held in July, 1916.
Baltimore and Ohio Car Shortage.
In speaking of the present condition and fu¬
ture outlook for the Baltimore and Ohio, Presi¬
dent Daniel Willard in an interview on September
15th said: “Our August tonnage of all kinds
was about ten per cent ahead of a year ago.
So far September continues to show improve¬
ment. While coal traffic is .good, the gains are
not confined to coal, but are spread over a wide
range of commodities. Our surplus cars have
now all been drawn into use. We had a shortage
of 100 coal cars on the entire system. That is
insignificant as shortage, but it represents a de¬
cided change from the time when a shipper who
asked for one car was quickly given five in the
hope that he might be induced to load two. Pas¬
senger traffic is still off, but passenger revenue
for August may not look so bad when the final
figures are made up as that item did previously.”
No. 12]
229
THE BLACK DIAMOND.
Salesmanship — and the Salesman.
The real salesman will find opportunity to
demonstrate his ability, no matter how unprom¬
ising the work in which he is engaged.
Not long ago the writer was passing a Greek
shoe-shining emporium, wearing a pair of new
tan shoes.
“Get ’em shined before they spot?” suggested
the swarthy “spieler” standing at the entrance.
This was an example of real salesmanship, be¬
cause it produced an argument in favor of using
the service at that particular moment. And yet
some coal men say that the only way to sell their
product is to make the lowest possible price !
At the same time one must sympathize with
the feelings of the business man who uses all of
the artifices at his command, only to find that
they fall flat. The situation suggests the story
of the baker who was chided for not using better
methods in selling his goods.
“What’s the use?” he said sadly. “You tell
’em you’ve got mince, peach, currant, custard,
apple and lemon pie — and they always end up by
taking apple. What’s the use of talking about
the rest?”
Maybe it’s that way with coal — only one argu¬
ment will deliver the goods.
Looking Ahead a Bit.
A coal dealer who recently had occasion to in¬
stall a new set of scales was not content merely
to replace the old equipment, though he planned
to continue using animal power in handling his
coal. Instead, he looked ahead a few years, came
to the conclusion that ultimately all of the mem¬
bers of the trade would be using motor trucks,
and ordered scales sufficiently large to take care
of any that he might install. The new equipment
is 18 feet long and 9 wide — ample for the biggest
trucks there are — and its capacity is 15 tons.
“This is far beyond our needs at the present
time,” he said, “but it won’t be many years be¬
fore the scales will be needed in their present
capacity. Of course, I might have saved a little
money now by using smaller ones, but inasmuch
as I would probably have to throw them out in a
few years, at considerable loss, I came to the
conclusion that I had better anticipate my re¬
quirements to the extent of installing scales big
enough to handle motor trucks as well as wagons.”
In the same connection, this dealer, who oper¬
ates his own blacksmith shop, is having the black¬
smith study up somewhat on the design of motor
trucks. He plans to have him look after repairs
on this equipment, when it is installed, and he
wants him to be preparing to take care of the
maintenance of the machines without having as
much difficulty as an absolutely “new beginner”
would.
This ability to look aliead and plan for the fu¬
ture, incidentally, is what distinguishes the big
and successful business man from the mere
plodder.
The Dirty Coal Yard.
-A good many retailers seem to believe that a
coal yard is necessarily dusty and dirty. Conse¬
quently they allow things to go as they please,
and take little or no interest in efforts to im¬
prove conditions. Their attitude is simply to grin
and hear it, because it is something that can’t lie
helped. This idea is shown not only in the con¬
dition of the yard itself, but the office. Usually
the building is shabby and ill-kept; the interior
grimy and unprepossessing, and the general ap¬
pearance far from attractive. The office and yard
may be far from the haunts of the customers of
the concern, and so may not reflect discredit on
the company from their standpoint; but how
about its effect on those connected with the busi¬
ness?
The man who goes about a coal-yard which is
so thick with dust — or mud, depending on the
weather — that it comes up to his ankles, is con¬
stantly fighting the conditions under which he is
working. He is like the man down in a caisson,
digging a foundation for a bridge : he is doing his
work, but it is under just as favorable condi¬
tions as possible. Office men are not improved,
either in ability or disposition, by having to work
in the dirt all the time, and the appearance of
statements and advertising matter sent out from
an office overlaid with dust is seldom as good
as it might be.
Now, ideal conditions in respect to cleanliness
are perhaps impossible of attainment in a coal¬
yard, especially one handling soft coal, which is
the sort the writer has in mind. But undoubtedly
they can be greatly improved, as compared with
the average yard. All it takes is a little thought,
a little effort and a lot of respect for one’s self
and the business.
Take for instance the matter of dust. This
can be got away from to a large extent by pav¬
ing the yard. Such an operation need not be
excessively costly. Second-hand paving blocks
can be obtained from contractors or the local
municipal authorities. Old blocks can be laid with
the worn side down, and when they are laid in
cement grouting, a splendid and permanent pave¬
ment, susceptible of being kept clean, results.
And this cleanliness also helps in enabling the
wagons to get about the yard with a minimum of
effort on the part of the livestock, which is not
the case when the roads are of dirt, and become
deep with mud during the winter season.
The street in front of the yard is usually al¬
lowed to get dirtier than necessary. This is be¬
cause the coalman is so accustomed to seeing the
yard that the street presents no contrast. One
coal dealer decided recently that as long as he
was helping to support the street-cleaning de¬
partment, his concern might as well get some of
the benefit. He “rode” the local authorities until
they put a crew at work cleaning the street. It
was the first time, investigation showed, in two
years! Industries similar to coal-yards, and care¬
less of appearances, occupied the remainder of the
district, and the city authorities, who, like other
people, follow the line of least resistance, used
their crews in other sections where their services
were demanded.
Some dealers are thoughtful enough of the
effect of care and good housekeeping on the pub¬
lic and their own employes that they keep lawns
in front of their yards, with a few hardy flowers,
like geraniums, blooming in season. Then with
the yard itself paved, and a hose turned on every
day or so to get rid of the accumulated dust,
the premises always look clean and attractive, in
spite of the character of the commodity handled.
If you believe that a clean coal-yard is out of
the question “try it on the dog.” Alake a few
efforts along the lines mentioned and see how you
like the change. It’s dollars to doughnuts you
won’t go back to the old conditions.
Use a Speaking Tube.
In most coal offices it is necessary, at the time
coal is being weighed, to raise the window in
order to give instructions to the driver as to
taking off or putting on lumps. In cold weather
this lets in big chunks of frigid atmosphere which
is not at all agreeable. A scales-clerk in a mid¬
dle western city has fixed this up by arranging a
speaking tube, by means of which he can talk
to the drivers without having to disturb the win¬
dow. He has the tube fixed with the transmitter
outside, near the driver’s seat, while the receiv¬
ing end is on a cord within easy reaching dis¬
tance. The stunt has proved so effective that a
good many other offices in that community are
now similarly equipped.
Handling Equipment for Small Yards.
The average small dealer, whose coal tonnage
is not among the largest in his community, has
the idea that it is out of the question for him to
attempt to install mechanical equipment for taking
care of the various operations of getting the coal
out of the cars, picking it up again, and so on.
So he condemns himself to the use of expensive
time and labor, consuming hand methods without
even attempting to work out a scheme tliat would
produce short-cuts in handling.
The manufacturers of coal handling equipment,
however, have been giving a lot of attention of
late to the problems of the small dealer, and it
is no longer true that it takes an immense volume
of business in order to support a yard which has
installed power-operated machinery for handling
coal. Efficient units have been made in such
small sizes that a dealer with even a minimum
tonnage can support their operation without
straining himself.
A retail coal dealer with a fair-sized yard re¬
cently installed equipment which cost, all told,
around $.5,000. He found that he greatly re¬
duced his handling expense, increased the effi¬
ciency of his teams and drivers, and gave him¬
self a larger margin on which to work. Yet the
interest on the money tied up in the machinery is
only $000 a year, or about $1 for each working
day. In other words, at an expense of $1 a day,
which is purely nominal, compared with the re¬
sults, he has been able to put his business on a
basis which is so far above that formerly used
that there is really no comparison.
“I used to have the idea, whenever I thought
of putting in machinery,” confessed this dealer,
with a smile, “that the overhead expense of the
proposition would be so great that I would con¬
stantly be impelled to cut prices and otherwise
reduce my profits in order to keep things moving.
But it has proved, in experience, just the oppo¬
site. Instead of having to take less profit, I am
sure of more, because I have cut expense at the
only point where it is susceptible of any material
reduction — in handling. And the overhead is so
slight that it doesn’t amount to anything at all.”
Mechanical methods of coal handlin.g will one
day be universal. Until that day comes, the con¬
cern which has the right lay-out of equipment is
going to find it easy to make money at prices which
mean only slov/ starvation for those using hand
methods exclusively. The moral for the pro¬
gressive dealer ought to be obvious.
Sacking Smithing Coal.
Large producers of smithing coal arc urging
their dealers to sack it, in order to protect the
coal, as well as to make a better showing
with it.
In a communication on this subject, one of
the leading concerns selling this character of
fuel says:
“When bagged, smithing coal does not de¬
teriorate in quality, whereas oftentimes the
dealers’ smithing coal bins are in close pro.x-
imity to other coal bins, allowing the possi¬
bility, if in bulk, of its becoming mixed with
other coal or foreign matter, which is a sure
way of injuring the quality of the smithin.g
fuel. Many dealers are now using sacks, which
eliminate this danger.”
•Same of the smithing coal jobbers are pro¬
viding a sacking service at cost, putting up
the coal in 100-pound and 200-pound sacks,
and adding only the cost of the packages and
the labor of sacking. Consequently the dealer
has a real inducement in favor of sacking.
The big benzol plant of the Tennessee Coal,
Iron & Railroad Company at Fairfield, .-Ma., is
f-nmnletecl and was given a try-out on I'riday and
started off very satisfactorily. The plant is lo¬
cated near the batteries of by-product coke ovens
of the company, from which it gets its material to
manufacture the product. The plant is one of
the largest in the country, with a daily capacity of
1.1,000 gallons.
230
THE BLACK DIAMOND
FUBZiISHED EVERY SATURDAY BY THE
BLACK DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered a't Chicago postoffice as second-class matter.
.\ddress all communications to
THE BLACK DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, September 18, 1015.
INDEX.
Special Articles.
Page
What Will Labor Negotiations Develop in lOlO?.... 221
Preparing for a Big Anthracite Strike . 222
New York (»olf Club . 222
Miners Demand a 20 Per Cent Anthracite Increase. . 223
Naval Board Personnel . 223
M. N. Bedford & Co.’s Bookkeeping System . 224
American Coal Dust Investigations . 225
New Consolidation Plants . 225
August Anthracite Shipments . 226
France’s Coal Shortage . 226
Ohio Rate Situation Is Perplexing . 226
American Coal in the Canaries . 227
Fewer Mine Accidents . 227
Coal and Coke Movements . 227
Pennsylvania Car Situation . 228
National Coal Association . 228
Indiana Production . 228
X’irginia Retail Association . 228
Field of the Retail Dealer . 220
Editorial . 230
News l.ocal to Chicago . 232
.Small Activities . 232
Facts Which Determine Our Export Prospects . 233
Market Reports.
Oeneral Review and Chicago . 234
Pittsburgh, Denver and Twin Cities . 235
Cincinnati, Louisville, Duluth and Omaha . 236
Detroit, St. Louis and Cleveland . 237
New York . 238
Philadelphia and Birmingham . 239
New England, Buffalo and Baltimore . 240
Hocking Valley . 15
The Impending Peril.
For the last year in Europe, men have
been devising and using with de^'ilish
malignity machines and things which will
destroy other men. .Some of the descrip¬
tions of the slaughter sent home by writ¬
ers of note and even by the participants,
have pictured unbelieveably savage situ¬
ations.
Other men, outside the war zone, have
been struggling to find some real issue
in the war — some great cause such as the
struggle for liberty in France and Amer¬
ica a century and more ago or such as the
struggle to liberate the slaves in this
country fifty years ago. They have not
found even a plausible pretext for the
war except that the Kaiser had a great
machine which he wanted to try out be¬
fore it became obsolete.
Knowing as much as we do today about
that struggle, everyone calls it an insane
war. And it is insane.
Hut — and here is the point — the mon-
archs may have been mad in the first
place, but something has since turned the
])eo])le crazy, too. There can be no es¬
cape from that conclusion. What is that
“Something” ?
Now. Is that cause strictly local to
Europe? Are the people of Europe in¬
sane and the people of America immune?
Is it a case of the spreading of an epi¬
demic of insanity through one half, of the
world while leaving the other half wholly
outside its influence? If that is true, the
mania of war must be contagious and not
infectious. It must be the result of a
poison which cannot travel over seas.
Or is it possible that we, too, need only
something — a mere pretext, it may be —
to throw us off our balance also? If that
be true, what is the cause? Is it of the
earth #r does it spring from the stars?
.Something is afoot, surely. We may not
— if we become insane — go to war with
soldiers and guns. Indeed, we need not.
There are other ways that we may ex¬
press onr insanity and thus prove our¬
selves in accord with Europe.
For example, there are commercial wars
where men dissipate their fortunes and
their business in a wild campaign to ruin
the other fellow. There are labor strug¬
gles where the employe breaks himself
and ruins the business which gives him
employment to the end only that the labor
union head may supplant the employer
and become the controlling factor in the
business. Or, there is a possibility that
the labor element may decide to refuse to
work in onr factories if we sell the ])rod-
uct to European people.
These things are all insane. Still, we
are likely to do them. Isn’t is possible
that we may, at any minute, precipitate
one of these wild struggles? The ten¬
dency of the times is that way, at least.
It is a real peril in America because there
is .so much wild talk afloat.
The greatest struggle that any Ameri¬
can citizen has today is to keep sane.
Is It Vindictive?
Few American business men have been
under attack so long and so persistently
as have the anthracite producers. W'e
are wondering why. Maybe if we look
at the moral standing of .some of those
who have been attacked, the answer will
fall out.
Undoubtedly, the assault leaders have
been the daily newspapers. Some of
them make free to use such words as
“corruption” and “dishonest" when deal¬
ing with the anthracite mine owners. The
only man permitted to use such language
is the one who can prove his charge or
who stands on a high moral plane. The
charge was not proved, according to the
supreme court. On the other score, the
Nazarene suggested: “Let him that is
without fault cast the first stone.”
Are, then, these accusers on such a high
moral plane they can speak contemptu¬
ously of this or any other business?
Daily newspapers are sold, net to the pub¬
lisher, for half a cent a copy. To increase
their sales and to get more half cents,
have these publishers never “colored" a
piece of news? To the same end, have
they never misrepresented by a hair? Are
all their scandals in high life real “high
life” scandals? -Are all their “rich” men
really rich and as prominent as they say?
In a word, are the papers scrupulously
truthful, which is the essence of morality?
Or, to get the inside on news, have they
never “plugged” for “their man” in an
election against the man friendly to their
oi)])osition ?
The writer of these lines served some¬
thing more than an apjjrenticeship on
metropolitan dailies. Fie has gone much
[September 18
further than even that indicates, -if -you
please. And on neither of these questions
can he absolve them.
They do not attack from a moral eleva-
vation. Their charges have been dis¬
proved in court. Why, then, the attacks?
Lawyers have held the second line of
attack upon the anthracite companies.
They have but two possible lines of ac¬
tion. One is that a law is being violated.
This they failed to prove. The other is
that the operators are guilty of moral tur¬
pitude.
Are the lawyers so without blame they
can raise the latter issue? For example,
if they know beyond a doubt, that a cause
they are asked to advocate in a court is
vicious and wrong, will they refuse to
serve even when a good fee is offered?
Do they say: “I am an officer of this
court. I cannot plead a wrong cause in
a court of justice or a court of equity?”
Did anyone ever know of a case where
any considerable number of members of
the bar said : “W’e must fight on the
moral side of a case or not at all. W^e
can act in no other way because our con¬
victions are on the side of morals and
there our acts must be also.” On the
contrary, is it not true that anyone with
the price can buy the skill of any lawyer
for either side of any case? Can a man
who sells his skill and his position in
court to defeat the ends of justice and
who does so for money, raise a charge of
moral turpitude against anyone?
The unions have formed the third line
of attack against the anthracite com-
j)anies. Isn't it true that every union is
seeking to monopolize the supply of labor
in its field? Indeed, is not that the
avowed purpose of the miner’s union?
Hasn’t that same union started out to
monopolize coal mining, as well? Doesn’t
it want thus a complete monopoly — one
that capital never dared try? To that end,
hasn’t this very union been able to put
one of its members in the cabinet and
does not that member stand even there
as an advocate of centralized control of
all labor? Wdiat would you call that —
virtue? Is it virtue — when there is a fed¬
eral statute against monopoly — to place
a partisan in the cabinet and then have
him, under the protecting wing of the
Government, advise the breaking of that
law? Being thus guilty of a major of¬
fense against the nation, on what ground
does the union stand when it attacks the
anthracite operators.
Who, then, are the principal accusers
of the anthracite companies? They are:
The daily press that will falsify the infor¬
mation which they give to the public in
order to sell a “sensation” for half a cent ;
the lawyers who will sell their skill, re¬
gardless of princijde or merit, to the high¬
est bidder, and the labor union, which de¬
fies the national law against monopoly
and while represented in the president’s
cabinet tries openly to get one for itself.
If these attacks are not made by men
who look down from a high plane, why
are they made? We believe there is
something in this: All of these gentle¬
men have been trving to convict the an-
thracite producers of something and have
not succeeded. Maybe they are just a
little sour over their defeat. Maybe some¬
thing of vindictiveness has crei)t in. It
is altogether possible, seeing the attack¬
ers are human after all.
THE BLACK DIAMOND
231
No. 12]
Anthracite Prices.
We have read pretty nearly everything
that has l^een written about the anthra¬
cite producers, including much of parti¬
sanship against them which has crept into
government papers. After having studied
every phase of the question, we are con¬
vinced that the core of the question of
anthracite ])rices has never been struck.
For example, the air has been rent by
the cries of those who talked about liozv
the prices happened to haz'e been made.
There has been an unending amount of
discussion of hoze the diiision of the price
zvas effected — the railroads getting so
much for freight and the operators get¬
ting so much for their coal. These two
themes have monopolized the discussion.
But, nobody has said much, if anything,
on this point: Are the prices, per se, right
or zerongf Comparatively, are the prices
too high or too low?
All of the other things are mere inci¬
dentals ; they do not count for much in
the long run. The one cjuestion which
really is worth discussing is : “Are the
prices fair — ordinarily, humanly fair? Are
they fair when compared with other
things which also were common necessi¬
ties?
A pound of bacon sells for, we will say,
thirty cents. That is $b00 a ton.
Ordinary common salt, dug out of the
ground as is coal and prepared by a less
exacting process than is anthracite, sells
for a cent a pound everywhere. That is
$20 a ton.
A small piece of felt, made out of off-
grade wool and some bad cotton, pressed
into the shape of a woman’s hat, sells
for $20.
Ordinary cottrtn stuff — so cheap and so
thin that chickens can pick corn through
it — made into the shape of a woman’s
dress sells all the way from $8 to $100.
No one questions the propriety of these
prices. The government has never made
any fuss about any one of them. No one
has asked whether the manufacturer or
the railroad got more than its share, l ire
world has been dumb on the subject.
But anthracite coal has been the center
of a hubub. It bas we will say, sold for
$3.50 a ton at the mines. That is about
one-half of one per cent the ])rice of a
ton of bacon. It is about one-sixth the
price of common salt. Only a man skilled
in calculus could tell what percentage it
is of the ])rice of the cotton made into
women s clothes.
And yet, anthracite prices are said to
be unfair while the other prices are con¬
sidered to be all right. ( )ne price is chal¬
lenged ; the other is not.
Here is the crux of the whole matter.
Anthracite prices have been compared
evidently not with these others, but with
those acce])ted on bituminous. The pop¬
ular reasoning has been: “If bituminous
coal sells for $1.14, on the average, anth¬
racite at $3.50 must be too high.’’
Isn’t it just possible that the ])rice of
bituminous is too low? Did that phase
of the question ever strike in? The
United States Geological Survey is auth¬
ority for the statement that only one of
the six major bituminous-coal producing
states ever came out with as much as the
cost of production ; the others have, on
the average, lost money.
Thus a comparison between anthracite
and bituminous is not proper. The other
com])arison — the one we suggest — is
proper. That is: Which is the fairest —
six tons of anthracite coal which will heat
six rooms for six months for $20 or a half
yard of cheap felt, pressed into the sha])e
of one woman’s hat to wear out in three
months, at $20?
A Memorial Is Due.
Dr. Joseph A. Holmes was, until his
death, the director of the Bureau of
iMines. Two facts about his career are
well known. The most important one
was that he died because he had worked
too hard in the public interest. There
can be no doubt about that. The other
was that he had while in the public serv¬
ice a small salary. That is fixed by law
and is a matter of record.
AVhen he died he had about $4.25 in the
bank; $41,000 of life insurance, which he
had managed to keep alive out of his small
salary ; and a house which cost about
$20,000. His family of three can, by prac¬
ticing the most rigid economy, manage
to exist on the income of the modest
amount of his insurance. But, they can¬
not maintain the house he built for them.
Yet this man killed himself Iry over¬
work for the public. He did it to save
the whole people money on the cost of
their heat and power; to save the mine
workers their lives and from injury, and
to ."^ave the nation a ])roper interest in its
endowment of natural resources.
If the American people, the benefici¬
aries of his great labor, have not the de¬
cency to make up to his family something
of the financial loss they sustain in his
death, they can erect a monument to keep
alive his memory, if only as an example
of ])atriotism to young Americans. A
nation if it appreciates loyalty at all, can
do nothing less, surely.
Accepting Good Things.
It seems to be next to impossbile for
ordinary human nature to accept all of
the good possibilities of any situation.
The common practice is either to discount
the good and therefore get only part of it,
or to be so sure that the bad must remain,
men accept it when good is in sight.
A case in point is the price accepted by
coal operators on one lot of coal recently
sold in the east. The producers of semi-
bituminous coal had an opportunity to get
a fair price for a block of coal sold on
yearly contract to a branch of the govern¬
ment. Everything, both at home and
abroad, suggested the good price. The
coal now is in big demand abroad and
there are those who believe that the de¬
mand will l.)e far bigger before it is less.
.Also, cars now are scarce and the move¬
ment relatively small. Further, labor is
short now at the mines, and is growing
shorter. Winter is almost here, when the
demand at home must be bigger. If there
was ever a combination of circumstances
which predicted not only a fair, but a
premium, price for that coal, that com-
l)inati(m exists.
'ST't, in the face of what is a golden o])-
])ortunity, the price was cut twenty-live
cents a ton, or from $2.85 to $2.b0.
In the west another case was quite as
])uzzling. A big tonnage of coal was
about to be bought on yearly contract.
'I'he buyer needed a given kind of coal and
could use nothing else. He had tried out
the product of several operators and had
settled upon one as giving him the best
possible results. Then he bought this
tonnage through a broker who was serv¬
ing him in another and an intimate ca¬
pacity. The broker obtained a commis¬
sion of two cents a ton.
When the time came to get the busi¬
ness for the second year, the operator who
produced the coal decided that he would
cut out the middle man and sell the coal
direct. He proposed to the buyer the
smashing of the old arrangement and the
making of a new one. The Iniyer had
been using the commission on coal to
j)ay an obligation to the broker. He did
not dare tell the facts about the matter.
So he consented to receive bids on his
tonnage. He got all of the producers of
coals which fit his needs into competition.
Before the contract was placed the man
who had sold the coal for one year .sold
it for the second, but he had cut his
own price thirty cents a ton. He did this
to save a commission of two cents a ton.
Out of that saving of thirty cents a ton
the buyer could afford to pay his debt to
the broker in another way.
It is hard to explain such things unless
it is true that human nature, even when
it sees that good is obtainable, is so de¬
voted to the bad it takes it as a matter
of course.
The Man Who Knows.
If anyone knows what the car situa¬
tion is likely to be it should be the head
of a great railroad. He gets reports from
all parts of the world, every day. These
show the amount of business actually
being done and the amount in pro,spect.
Also, he gets reports, at stated periods,
showing the carrying capacity of his line
expressed in cars, engines, et cetera. He
thus has the expected tonnage and a
measure of the equipment. He can com¬
pare one with the other.
Today the New A^ork Central and the
Penn.sylvania railroads are storing coal.
They are buying it in big lots and are
putting it on the ground. They are doing
so because their officers are convinced
that the supply of cars, a little later, will
not be sufficient to take care of the com¬
mercial business and of their own fuel
requirements.
Incidentally, it might he .said that if
any railroad men in America know what
the situation is, the officials of those two
railroads should. They are the best rail¬
ways on earth and they are both well
managed.
Further, these two carriers are not
easily moved to store coal. Both of them
refused, on such an important occasion
as the threat of a strike, simultaneously,
in the anthracite and bituminous fields in
1910, to .store coal. They are not, there¬
fore, easily frightened by a cry of “wolf.”
Yet, despite this conservatism which,
ordinarily, binds them, these men see
danger ahead in the car situation. They
are buying and storing coal to avoid the
coming shortage. Not only that, but they
are paying a premium of fifteen cents a
ton to get it and as much more to store it.
If they decide in that way, has the av¬
erage retailer and steam plant owner any
better information which would warrant
him in continuing to neglect to buy stor¬
age coal in quantity?
232
THE BLACK DIAMOND
[September 18
News Local to Chicago.
Rush C. Rutler, the attorney who is to address
the American Alining Congress on next Wednes¬
day, left Chicago on Thursday of this week for
San Francisco.
Frank B. Stewart, general sales manager for
the Winifrede Coal Company, Cincinati, was in
Chicago this week getting in touch with the local
splint coal market.
Kuper Hood, general sales manager of the
Houston Coal Company, Cincinnati, was con¬
ferring with his local representative. Boh Can-
telou, on Tuesday.
Uncle Jimmie Strachard, superintendent of the
Sonman Shaft Coal Company, of Sonman, Pa.,
was in Chicago this week on his way to the
Pacific Coast, where he has gone for a vacation.
P. H. Rurlingham of Cincinnati was a Chi¬
cago visitor this week. Air. Burlingham is of
the belief that this country is on the eve of one
of the greatest industrial revivals it has ever
known. Machine tool manufacturers in Cin¬
cinnati are all working full time with enough
orders in sight to take care of them for nearly
a year.
Lawrence Buckley, while covering a number of
northern Illinois towns for the Wilmington Coal
Alining & Alanufacturing Company last week,
noted that dealers’ yards were completely stocked
the latter part of August, and, as a result, dealers
are not buying much bituminous coal. Price is
absolutely no inducement as there is no room
for the coal.
Edward H. Doyle, manager of the Aliddle West
Coal Company, while in Chicago this week, said
his company will be ready to ship coal from their
new operation at Seco, Ky., by October 1st. This
new product will be marketed under the name
of Tepee coal. It is part of the famous Elkhorn
seam, making it an ideal coal for the iron, steel
and gas industries, as well as a first class domes¬
tic fuel.
The western railways have asked the Interstate
Commerce Commission to grant a rehearin.g of
the western rate case on all commodities on
which no advances were allowed.
The Illinois Coal Operators’ .Association and the
Public Utilities of Illinois have also petitioned
the Interstate Commerce Commission to suspend
the rates on bituminous coal and to grant a
rehearing of that case also. Attorneys for the
various interests spent the last few days of this
week in Washington discussing the matter with
the commission and a decision is expected in a
short time.
Arthur J. AlacBride, assistant general manager
of the Pocahontas Fuel Company, with head-
fiuarters at No. 1 Broadway, New York, was a
Chicago visitor within the week. While in the
west he made a trip into the northwest to study
conditions there and is rather encouraged by the
outlook. He says movement to the interior has
been slow, but still is convinced that there is
finite a demand which will have to be satisfied a
little later on.
On last Sunday, James F. Callbreath, secretary
of the American Alining Congress was in Chi¬
cago for a day on his way to San Francisco,
where a meeting of the Congress opens on next
Alonday. He went ahead of the regular party in
order to be there to arrange for the banquet to
be given on the 21st in honor of Van H. Manning,
the director of the Bureau of Alines. The Chi¬
cago party, headed by Carl Scholz, left here on
Tuesday night.
.Among the week’s visitors in Chicago was H.
.A. Kuhn of the Pittsburgh-Westmoreland Coal
Company, who is on a trip in the west to study
conditions. He says the eastern situation has
been improving steadily, because some of the
large buyers anticipating some trouble with cars,
a shortage of labor, and a big foreign demand
and possible labor trouble six months hence are
beginning to put coal in storage. Also the coke
situation has been improving rapidly, largely be¬
cause the steel mills are running to capacity and
are taking a maximum amount of coke.
It will be recalled that a short time ago there
was organized the Producers Company, which
took over mines controlled by the J. K. Dering
Coal Company in Franklin county. This week
the announcement was made that the Producers
Company had taken over the mines of the old
Dering Coal Company. These mines, it will be
remembered were mainly in Indiana, although
some of them are in the Danville district of Illi¬
nois. By this transaction the receivership of the
old Dering Coal Company is terminated and all
obligations to bond holders and other claimants
have been satisfied in the measure and the proper¬
ties have been placed in strong hands. Of the
Producers Coal Company, F. S. Peabody is presi¬
dent. An arrangement will be made with J. K.
Dering to handle the output of these mines, since
naturally he is more familiar with the coal than
anyone else, having gotten the mines together in
the place and having sold the output for so long.
Information coming from Alilwaukee this week
is to the effect that the Thompson interests are
putting their blast furnaces in operation for the
first time in about four years. This is an indi¬
cation of the lively demand for steel that is every¬
where apparent now and is of interest to coal
people because it increases the demand for coke.
As a matter of fact, all of the steel interests in
this territory are now running to full capacity
and of course blast furnaces are booming. C. D.
Caldwell, the representative of the Solvay Process
Company puts it : “The coke situation considered
from the point of view of either the furnace and
foundry trade or the retail trade is in better
position now than it has been at any time in
four years.”
Coal men interested in securing a membership
in the Chicago Association of Commerce should
get in touch with Thomas Gough in the S. C.
Schenck office. Tommy is endeavoring to get a
creditable representation of coal men into that
organization so that his superior, Charles L.
Dering, who is president of the association, need
not apologize for the lack of interest shown by
his fellow tradesmen in that progressive institu¬
tion. The association is recognized as one of
the strongest, most active and most influential
business organizations in the world. Its achieve¬
ments have inspired the organization — or reor¬
ganization — of hundreds of commercial bodies in
other cities, many of which have adopted in whole
or in part, its plan of organization and methods
of work. The interests of Chicago business men
are, in many matters of national importance,
shared with the business men of the entire coun¬
try. The association is a factor of greatest in¬
fluence in national as well as state and municipal
affairs, a fact evidenced by recent leadership of
public thought in national issues of business legis¬
lation and extension of foreign trade.
On last Saturady at noon, the Illinois Coal
Operators’ Association gave an informal luncheon
to Van H. Alanning, the director of the bureau of
mines, who stopped in Chicago a day on his way
to San Francisco. The luncheon was arranged to
very short notice and thus it was not possible to
have brought to Chicago the outside coal men who
would have been very glad to meet Mr. Alanning.
Rather the banquet was under the auspices of the
Illinois association, being arranged by C. M.
Moderwell, as president, but there was included
most of the local operators, whether they were
from Illinois or Indiana, and some professional
men. The luncheon was held at the Union Lea,gue
Club and only very short addresses were made by
Air. Aloderwell, Air. Manning, Geo. S. Rice, F. W.
DeWoIf, and W. S. Bogle. Those who attended
the luncheon were: Air. H. C. Adams of the
Jones & Adams Coal Company; Air. Fred Schroe-
der of the Purity Coal Company: Mr. W. S. Bogle
of the W. S. Bogle Company: Air. Jas._ Needham,
vice-president of the Illinois Coal Operators’ As¬
sociation : Air. Geo. B. Harrington of the Chi¬
cago, Wilmington & Franklin Coal Company :
Air. G. W. Traer of the Illinois Coal Operators’
Mutual Employers Liability Insurance Associa¬
tion ; Mr. J. Winchester Holman, president of
the Alining & Engineering World ; Prof. H. H.
Stoeks of the Alining Department, University of
Illinois ; Air. Carl Scholz of the Rock Island
Coal Alining Company; Air. Van H. Alanning,
director U. S. Bureau of Mines, Washington ;
Air. C. AI. Aloderwell of the C. AI. Moderwell Co. ;
Mr. Geo. S. Rice, Bureau of Alines, Pittsburgh ;
Air. E. W. De Wolf, director Illinois Geological
Survey, Urbana, Illinois: Air. Jno. H. Swift,
Bureau of Mines, Washington ; Air. Chas. I.
Pierce of the Big Creek Collieries Company;
Air. F. C. Honnold of the Chicago & Big Aluddy
Coal Company; Mr. H. L. Smith, U. S. Bureau
of Alines, Urbana, Illinois, and Mr. Geo. H.
Cushing of The Bl.\ck Diamond.
Reports have been circulated that Dauphin
Island might, in the near future, be taken over
by the Tennessee Coal, Iron & Railroad Company,
whose main offices are at Birmingham, and used
as a big coaling station for merchant vessels, is a
rumor that has recently gained wide circulation.
However, all efforts to confirm the report have
been without results.
George Gordon Crawford, president of the
Tennessee company denies the report.
Small Activities.
F. W. Buckalew, sales agent of Whitney &
Kemmerer, has been spending a few days on
business in New York.
Coal men have received a pretentious invita¬
tion from the Lehigh Valley Railway to be pres¬
ent at the opening of their new freight offices at
.'i08 Bourse building, Philadelphia, on Alonday
next. A luncheon is to be served.
Frederick W. Remy, expert accountant of
the Rocky Mountain Fuel Company, died
Monday afternoon of bronchial asthma at his
home in Denver. He is survived by a widow and
by a daughter, Mrs. W. D. Harvey of Bing¬
ham, Alass. He had been a resident of Colo¬
rado thirteen years.
Frank Freeman, formerly with the Northern
Coal & Dock Company, as salesman in western
Alinnesota and South Dakota, has become man-
a.ger in Minneapolis for the Womack-Fooshe
Coal Company. Air. Freeman was formerly with
the Pittsburgh Coal Company, as city salesma';
and has had experience in the direction of his
new position.
An option on 1,300 acres of coal in Luzerne
township, Fayette county. Pa., valued at $2,.')00,-
000. expired last Saturday night. C. H. Bolton of
Irwin, Pa., was the agent working for Pitts¬
burgh interests. The coal option was surrounded
by some of the largest coal and coke interests
in the territory and represented nine properties
as described here two weeks ago. When it was
learned the Pittsburgh option had not been taken
up a AIcKeesport financier asked for an option
on the same tract and developments are looked
for later.
Fred Martin, of Omaha, is of the opinion that
there will be somewhat of a scramble for coal
in the west during October and November. The
late threshing season has kept the dealers’ yards
prettv well filled up with threshing coal bought
in Alay and June and as a result no effort has
been made to get coal to the consumers’ bins.
The continued wet weather has made it incon¬
venient for the farmer to get to town for his
coal and as a result less than half the usual
tonnage has been handled up to this time. Air.
Alartin expects to be in Chicago for several days.
The Johnstown (Pa.) Democrat of Saturday,
September U, contains the following informa¬
tion : “Charles E. Specht, who announced some
weeks ago that he was a candidate for mayor,
has returned from New York with the explana¬
tion that he dropped out of the race because he
has been too busy in New York City taking
orders for war supplies. He sold to the French
government 200,000 tons of Pocahontas coal at
a very fair price, and .gave the same government
an option on 6,000 acres of coal land in West
Virginia. He expects to receive a cablegram in
a short time to the effect that the banner deal
has been closed.”
Birmingham News Notes.
It is stated that owing to the demand for benzol,
from which is made aniline dyes and explosives,
the plant will be run to its full capacity for many
months to come. The completion of the plant
was somewhat delayed by the heavy rains of the
past several weeks, a leak developing in the con¬
crete basin. This was successfully stopped and
the plant put in operation.
Twenty-five teams will take part in the field
day demonstrations and contests of the Alabama
Safety Associations at the Alabama state fair,
October 9. This was announced following a
meeting of the association at the city hall Satur¬
day afternoon.
A committee headed by C. H. Nesbitt, Dr. W.
S. Rountree, F. G. Alorris, AI. H. Fies, and J. L.
Davidson, was named to have charge of the ar¬
rangements for the meet. Two teams, one of
white men and the other of negroes, will com¬
pete from each mining division. The teams will
be selected by eliminating contests and prizes will
be offered to the trainers of the winners.
Dauphin Island has a landlocked harbor that is
just five miles from the Gulf of Mexico and with
a line of railroad now being extended by the
Alobile & Ohio road to the island, two days and
a half time will be saved in loading and unload¬
ing cargoes. The island is now controlled by in¬
terests headed by J. AI. Dewberry of Birmingham,
Alabama.
Extensive plans have been made for the largest
coaling station in the south. The work is in
progress and ere long everything will be in readi¬
ness for vessels to coal from this point.
No. 12
THE BLACK DIAMOND
233
Facts Which Determine Our Export Prospects.
The Export Situation.
Last week’s export shipments of bituminous
coal over the Atlantic seaboard showed up very
well. Baltimore increased its shipments, sending
out 74,000 tons, large shipments going to Italy,
France, Argentine and Sweden.
Hampton Roads shipments from the three ports
reached 127,578 tons, Italy, Brazil, Argentine and
France being the principal destinations. ^
On Wednesday a cable from Pans read ; 1 he
American coal companies are marketing consider-
able amount of their product in France, wl^re
it may now be delivered at a fair profit. One
company has just placed an order for 2,000,000
tons and at prices that will ultimately land it in
Paris at seventy-five francs, or fifteen dollars
per ton. Retail prices now reach from 100
francs to 120 francs.”
Some of the representative coal exporters who
were seen by The Black Diamond, relative to
this cable, did not believe such a contract had
been closed. It is known that big interests in
Paris have been working for months past in an
effort to. finance and cover the transportation of
an enormous quantity of American coal to re¬
lieve the distressing situation in southern France
and particularly in Paris, which has been brought
about by the shortage and high prices of coal.
The principal trouble in completing the negotia¬
tions on this deal is the inability of the principals
to cover the transportation question.
It is known that the coal situation in France is
fast approaching a crisis, and unless an adequate
tonnage of American coal can be secured, that
both the householder and manufacturing interests
are likely to suffer a serious coal famine before
the coming winter is over.
Recent Coal Freight Charters.
Steamer Plymouth, Philadelphia, Baltimore or a Vir¬
ginia port to the Mediterranean, coal, p. t. „ .
Steamer Tancred (Nor.), Newport News to St. Lucia,
coal p t.
Steamer Sonora (Mex.), Baltimore to Cienfuegos, Coal,
^ Steamer Gustav Adolf (Swed.), Baltimore to Mahno,
Sweden, coal, p. t., spot. c.. t , >
Steamer Maud (Nor.), Philadelphia to St. Johns,
N. F., coal p. t. ^ ,
Steamer Rauma (Nor.), Baltimore to Callao, coal, p. t.
Schooner D. W. B. (Br.), Philadelphia to St. John,
N. B., coal, $1.60.
Schooner Frontenac, a Virginia port to Rio Janeiro,
'^°Steame°' Francesca Musner (Ital.), Baltimore to Pal¬
ermo, coal, p. t., spot. .
Steamer Thorsa (Nor.), Philadelphia to Sagua, coal,
'^'steamer Orkild (Dan.), Philadelphia to Cuba, coal.
Steamer Guiseppe Accano (Ital.), Norfolk to west coast
Italy, coal, 42s, prompt. „ , ,
Schooner Jacksonville, Philadelphia to Bermuda, coal.
Steamer Ubbergen (Dutch), Baltimore to Tela and
Truxillo, coal and rails, p. t.
Steamer Lysefjord (Nor.), Baltimore to Sagua la
Grande, coal, p. t., spot. , , _ , . o j- u
Steamer Osterland (Swed.), Baltimore to a Swedish
port, coal, p. t., spot.
Steamer Avona (Nor.), Baltimore to Sweden, coal, p.^ t.
Schooner Iona Tunnell (Fort.), Philadelphia to Cay
Francis, coal, p. t.
Foreign Freight Rates.
W. W. Battie & Co., Produce Exchange, New
York, report as follows under date of September
13;
The freight market is considerably firmer than
a week ago owing to the absorption by and the
continued demand for the grain trade.
Cotton orders are also appearing in the market,
and a few charters have been effected for cotton
at hi.gh rates.
But few steamers were closed for export coal
during the past week and none of these charters
were reported. The number of steamers avail¬
able for export coal has decreased considerably.
We would quote freight rates on coal by
steamer as follows :
West coast of Italy, about . 42s 6d
Marseilles . 40s to 41s
Barcelona or other good Spanish port, about . 40s
(Spanish dues foe account of cargo.)
NOTE. — Charters for Italy, France and Spain read:
*‘Lay days to commence on steamer’s arrival at or off
port of discharge, Is per net register ton per day de¬
murrage.”
Montevideo . . . 33s 6d to 34s
Buenos Aires or La Plata, about . . 34s
(Above quotations on Plate coal by British steamers.
Neutral steamers are more difficult to obtain and the
rates are always higher.)
Rosario, about . . . 35s
Rio de Janeiro . 33s 6d to 34s
Santos . 34s to 35s
((Consignees paying docas dues.)
Valparaiso or Callao . $7.00 to $7.50
Havana . $2.50 to $2.75
Cardenas or Sagua . $2.75 to $3.00
Cienfuegos . $3.00 to $3.50
Port of Spain, Trinidad, about . $3.00
St. Lucia . $3.50 to $3.75
St. Thomas . $3.00 to $3.25
Barbados, about . $3.75
Kingston . $2.75 to $3.25
Curacao . $3.25 and p. c.
Santiago . $2.75 to $3.25
(luantanamo . ■ . to $3.25
Demerara, about . $5.00
Bermuda, about . $3.00
Vera Cruz . $3.50 to $3.75
Tampico . $3.50 to $3.75
Hampton Roads Exports.
Exports of bituminous coal from Hampton
Roads for Au.gust, 1915, and comparisons, are as
follows :
, - 1914 - ,
, Lambert’s Sewall’s Newport
Country —
Avonmouth, England....
Buenos Aires, A. R .
Bridgetown, Barbados....
Bagnoli, Italy .
Cardenas, Cuba .
Cienfuegos, Cuba .
Chaparra, Cuba .
Civita Vecchia, Italy. . . .
Cristobal, Canal Zone....
Curacoa D. W. I .
Dakar, F. W. A .
Gaeta, Italy .
Genoa, Italy .
Guayaquil, Ecuador .
Havana, Cuba .
Ilorta, Gayal, Azores....
Italy, any port .
Kingston, Jamaica .
La Plata, A. R .
Leghorn, Italy .
Lisbon, Portugal .
Maddalena, Italy .
Marseilles, France .
Maranham, Brazil .
Montevideo, Uruguay....
Naples, Italy .
Para, Brazil .
Pernambuco, Brazil .
Piraeus, Greece .
Porto Vecchio, Italy .
Porto Ferrajo, Italy .
Palermo, Sicily .
Puerto Militar A. R....
Puerto Plata, S. Domingo
Rio de Janeiro, Brazil...
San Juan, P. R .
Savona, Italy .
Santiago, Cuba .
Spezia, Italy .
St. Vincent, C. V. I .
St. Nazaire, France .
Taranto, Italy .
Valparaiso, (Jhile .
Vera Cruz, Mexico .
St. Lucia, B. W. I .
Bahia, Brazil .
Santos, Brazil .
Iquique, Chile .
Gibraltar .
Las Palmas, C. I .
Toulon, France .
Stockholm, Sweden .
Aalesund, Norway .
St. Thomas, D. W. I....
Demerara, B. G .
Trinidad, B. W. I .
Frey Bentos, A. R .
Point.
Point.
News.
11,404
1,538
4,041
19,943
5,068
6,203
10,602
4,396
32,058
10,048 1,695
2,880
12,091
4,400
5,980
4,906
5,170
766
14,623
7,663
12,649
13,587
6,994
1,227
1,414
3,735
6,455
4,565
5,411
8,617
7,060
7,070
5,768
8,617
5,742
7,220
5,505
6,036
5,410
18!905
13,018
1,983
Totals
173,596
Lambert’s
Country — Point.
Avonmouth, England .
Buenos Aires, A. R . 72,317
Bridgetown, Barbados.... 4,500
Bagnoli, Italy . 8,920
Cardenas, Cuba .
Cienfuegos, Cuba . .
Civita Vecchia, Italy.... 13,933
Cristobal, Canal Zone...'. 46,300
Curacao, D. W. 1 . 5,465
Dakar, F. W. A . 6,650
Gaeta, Italy .
Genoa, Italy . 55,627
Guayaquil, Ecuador . 1,025
Havana, Cuba . 2,759
Horta, Gayal, Azores.... 711
Italy, any part . 21,930
Kingston, Jamaica . 5,867
La Plata, A.R . 13,794
Leghorn, Italy . 12,394
Lisbon, Portugal . 3,993
Maddalena., Italy . 14,037
Marseilles, France .
Maranham, Brazil . 1,040
Montevideo, Uruguay.... 11,818
Naples, Italy . 21,708
Para, Brazil . 2,142
Pernambuco, Brazil . 4,280
Piraeus, Greece . 5,140
Porto Vecchio, Italy . 5,145
Porto Ferrajo, Italy . 8,750
Palermo, Sicily . 4,905
Puerto Militar, A. R .
Rio de Janeiro, Brazil... 14,003
San Juan, P. R . 4,116
Savona, Italy . 12,500
Santiago, Cuba .
Spezia, Italy .
St. Vincent, C. V. I _ 5,419
St. Nazaire, France . 5,448
Taranto. Italy .
Valparaiso, Chile . 1,535
Vera Cruz, Mexico . 2,157
St. Lucia, B. W. I .
Bahia, Brazil .
Santos, Brazil .
Inuiqtie, Chile .
Gibraltar .
32,068
-191.5 -
Sewall’s
Point.
4,606
5,197
2,029
22,156
88,516
Newport
News.
1.479
11,463
5,254
3,667
3,202
5,300
3,053
14,445
9,966
18,246
15,803
1,038
716
5,580
9,812
923
18,728
2,696
32,428
11,391
Las Palmas, C. I . . .
Toulon, France . . .
Stockholm, Sweden . . .
.'\alesund, Norway . . .
St. Thomas, D. W. I . . .
Demerara, B. G . . .
Trinidad, B. W. I . . .
Frey Bentos, A. R . . .
Totals . 400,328 33,988 175,190
The above 1915 figures are taken from custom
house records. There is some discrepancy be¬
tween the above figures and the actual Newport
News exports, by reason of several steamers
clearing from Newport News for foreign ports
via other American ports, in which case the fig¬
ures are shown in the custom house records of
the last port of clearance.
Export Trade Briefs.
A late communication from Consul-General
Geor.ge H. Scidmore, of Yokohama, Japan, ex¬
plains where the Inter-Island Navigation Com¬
pany of Honolulu will acquire the coal that will
be used in the new million dollar stora.ge plant
that they are to build at Honolulu. Mr. Scidmore
reports that a big deal is reported by the Japan
Mail between the Hokkaido Tanko Kalsen Kaisha
and the Inter Island NavigationCompany at Hon¬
olulu for the supply of 130,000 tons of Yubari
coal. The first shipment has just been made.
This is the first big export of Japanese coal to
Hawaii, which has heretofore bought Australian
coal.
Consul Walter H. Schulz, of St. Michaels,
Azores, reports under date of August 23 that an¬
other order for 3,000 tons of American coal has
been placed by local dealers for delivery in
schooners. Several schooners have been em¬
ployed in the trade in recent months. The quick¬
est voyage was twenty-five days. Freights are
$6 to $7.50 per ton.
The Bl.4ck Diamond learns that there are
several agencies that are at work upon schemes
to export large quantities of American coal to
France. The principal problem to be worked out
in addition to the shipping problem, is that of
arranging for payments. Coal men in this coun¬
try are impressed with France’s urgent need for
coal, but they cannot rush headloag in the game
of shipping coal abroad until they are assured
of payments.
Scarcity of coal in Spain has reached a stage
approximating a fuel famine. United States Am¬
bassador Williard today cabled the Foreign Com¬
merce Bureau that the fuel shortage threatens
to hamper practically every industry seriously
and pointed out that an unlimited opportunity is
offered American coal producers. The Spanish
government has offered special inducements to
coal producers by removing all customs duties
and transportation tax. Spain’s annual consump¬
tion of coal is about 6,000,000 tons.
Virginian Loadings.
The Virginian Railway loadings for June
were :
Slab Fork .
Winding Gulf .
K. G. J. & E. R. R,, via Pax.
Loup Creek Colliery Co .
MacAlpin Coal Co .
E. E. White Co., Glen White!
Raleigh C. & C. Co .
E. E. White Co., Stotesbury. .
•Gulf Smokeless Coal Co .
Sullivan C. & C. Co .
Long Branch C. Co .
Wyoming Coal Co . !
The New River Company:
Carlisle . . .
Summerlee .
Lochgelly .
Sprague .
Beckley .
Mabscott .
Scarbro . .
Cranberry .
Gulf Coal Co .
Lynwin Coal Co .
Bailey Wood Co .
Meade-Pocahontas Co .
New River Collieries Company:
Eccles .
Sun .
Pemberton Coal Company:
Big Stick .
Affinity .
Pemberton .
Willis Branch .
Mt. Hope C. & C. Co .
.Mgonquin Coal Co .
Sugar Creek C. & Co .
Trace Fork Coal Co .
Virginia Smokeless F. Co, ....
Woodpeck Coal Co . .
West Virginia Coal Mining Co
Mullen’s Smokeless Fuel Co...
City Coal Co .
Tons.
25,763
22,071
21,998
19,755
17,647
17,418
15,232
13,770
10,060
9,953
9,794
9,314
8,850
6,630
4,849
3,120
3,039
2,699
1,156
1,052
- 31,368
. 8,613
. 7,081
. 6,932
. 6,313
4,825
3,798
- 8,623
10,060
4,796
4,287
- 19,143
. 3,986
. 3,319
. 2,344
. 2,284
. 2,178
. 1,338
. 1,098
. 440
. 401
. 252
Total
801,932
234
THE BLACK DIAMOND.
I September 18
General Review.
Every Phase of the Market Is Encourag¬
ing, Showing Upturns in Demand
and Prices.
.•\n optimistic statement about coal trade con¬
ditions for this week is not oidy not out of place,
hut is warranted hy the facts. There has not
heen a time in two or three years when current
demand was better. There has not l)een a time in
seven years when the outlook was as bright. The
eoal trade, as a matter of fact, is going to have
more difficulty for the next six months, to satisfy
the demand than it is to sell coal. This arises
from the fact that extraordinary demands arc
coming from all locations at once and from the
further fact that every agency of production and
di.stril)ution is encountering fresh difficulties
every little while that slow down output or dis-
trilmtion.
matter of first importance, of course, is the
widespread demand for coal. Considering the
most remote thing first, the export trade has l)een
developing almost alarming proportions in the
last few weeks. As one man put it :
“All of the European countries have a big de¬
mand for coal. Germany’s outi)Ut is shut out of
other markets. A major portion of France’s
mines are in territory occupied hy the enemy.
Ilclgium is in the same position. England is thus
left to satisfy practically all of the foreign de¬
mand and is having difficulty at home, first hy
the loss of miners to the army, and second, hy a
tendency on the part of those who remain at home
to go out on strike. ^Meanwhile normal consump¬
tion is increasing. Railroad trains, transports
and battle ships are constantly kept under steam
to he used on a moment’s notice. The consump¬
tion of coal is tremendous even when these vari¬
ous agencies are inactive. The demand is more
than England can conveniently supply. The
storage piles, which have aided materially, are
now exhausted. America must make up the de¬
ficit : when that time comes tremendous volumes
must he moved. That subtracts consideralile
from the available quantity for home distribu¬
tion.
Meanwhile at no time since 1907 have the steel
mills and allied industries of America run on
better time. The consumption of coal first for
coke making and then for steam in these various
lines of industry is heavier than it has heen for
about eight years. Furthermore, foreign countries
have heen negotiating within the week for a loan
of a billion dollars that will he spent in this coun¬
try for the next four months. That amount of
money is going to increase the sjieed of outnut
for these various manufacturing concerns. This
will call for more coal.
In addition the winter season is approaching
when the demand for domestic coal more than
triples what it has heen for the jireceding two
months. This domestic demand is going to he
heavier hy far than at any time for the last four
or five years. .Already it is assuming greatly
alarming proportions in some sections of the
country. .As an indication the ui)per lake trade
which expected to slow down about now, is be¬
ginning to take fresh supplies of coal and sales
of large tonnages are being reported.
Furthermore, the railroads and larger indus¬
tries do not like the labor outlook, especially in
the east. .As a consequence they are buying coal
for storage puriioses now, not e.xpecting to use it
until the first of .April, next year. .All of these
things are making a very strong market, especially
in the east and frequent rises of prices are re-
jiorted from some of the leading centers with in¬
dications that i)remiums will soon he paid.
In the meanwhile production is being inter¬
fered with. In the first place, as the mines try
to run full capacity they find a shortage of labor.
Subtraction of labor supply has been three-fold
in character. No new miners have heen received
from abroad. Some who were here have gone
home to fight and others who remained have left
the mines to work in steel mills. The loss is
quite serious and is not readily made up. ATean-
while mine ])roduction is cut down to some ex¬
tent.
Also transportation difficulties are current. The
railroads are called unon to move large quan¬
tities of grain and, in the east, a large volume of
supplies for the European countries. They have
not the motive power to satisfy that tlemand and
also to move coal. This, by an artificial means,
adds strength to what is almost a runaway mar¬
ket, the latter being brought about hy an increase
in demand.
Chicago Market.
Buying Is Heavier on the Whole, but
Prices Are Virtually Unchanged.
Office of The Bi..\ck Di.'iMond,
Chicago, Septemlier Ifi.
Tile major change in the coal market in Clii-
cago in the last week has heen in the increased
'luying of domestic sizes. There has not heen
a commensurate increase in the sale of steam
coal. 'I'herefore domestic coal is .growing stronger
h 't some of the steam sizes are not quite so
stiff as they were a week ago.
The anthracite situation has shown consider¬
able improvement. The retailers have appre-
I'iated the logic of the salesmen’s ar.gumcnt to
the effect that eastern buying is delayed as the
retailers are waiting for the reduction in freight
rates to go into effect. In the meanwhile, there
is plenty of coal available for the western mar¬
ket, a fact which cannot lie assured after the
first of October. Also, the retailers appreciate
that the movement to the western interior has
lieen very light for the last few months and an
actual shortage exists except on the upper lake
docks.
'I'he smokeless coal situation has not changed
a great deal in the last week. The operators
are holding firmly to circular prices hut they
are able to do so only because the coal has been
kept off this market. There is no free coal here
to speak of and if there was, the sale of it would
be difficult. In the meanwhile the sales have been
relatively small but the price has been firm at the
circular price of $1.40 for mine run. Eump coal has
been a little more abundant since the demand for
slack has been larger. The circular price has been
maintained but in some places some of the coal
has been sold for less. The prices up to Thurs¬
day were :
F. O. R. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
I ump and egg . 4.05@4.30 2.00@2.2.5
Somerset County coal has been occupying about
the same position as has smokeless. 'I'he price
is fixed by the eastern demand and not by the
western demand and Chicago has been asked
to pay that price or not to take that coal. In the
main, the western demand has been so small it
seems the retailers have chosen the latter alterna¬
tive. That is, the movement has been relatively
small for this part of the year but the prices
have been firm at $1.2.1 for mine run. Eump and
esrg coal is in better demand at prices ranging
all the way from $1.75 to $2.00 or better. The
prices up to Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. ^fiT^es.
V.uzc run . $3.20@3.30 $1.15(®L2:)
Lump and egg . 3.75@4.05 1.75@2.00
The Hockir.g coal market has shown a slightly
heavier movement, but no price change has been
recorded within the last week. In fact, some of
the shipping’ companies had anticipated a better
demand and had sent in some free coal. The
prices up to Thursday were ;
F. O. B. F. O. B.
Hocking — Chicago. Mines.
l'/4-inch lump . $3.15 $1.50
The splint market is still laboring with some¬
thing of an over-supply of coal when compared
with the immediate requirements of the trade.
Even so, the market has not been without its
redeeming features, the price on the average be¬
ing about $1.25, with some sales for less and
some sales for more. The prices u]) to Thursday
were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
IJ^inch Himp . $3.05@3.15 $1.15@1.26
Offerin.gs of eastern Kentucky coal are variable.
One operator with a well known coal is gettin.g
$2.25 ; others are getting less. The latter is due,
in part, to the fact that the western trade is
not taking any high grade bituminous coal to
the extent it did a year a.go. The prices up
to Thursday were :
F. p. B. F. O. B.
Eastern Kentucky — Chicago. ]\Tines.
Domestic lump . $3.40@ 4.1 5 $l.r)0@2.2r)
Egg . 3.2r)@3.7r) 1.35^1. 8.1
The change in the l''ranklin county situation is
altogether one of tonnage as is indicated by tbe
fact that up to a few weeks ago the mines in
that district were running on the average about
fifty per cent productive capacity. In the last
few weeks there has been enou.gh improvement
in demand so that the mines are running to about
seventy-live per cent productive capacity. That
means that some operators are sold up ahead.
Others are still in a position where some of their
mines arc closed down. The average of the
field, however, is pretty close to seventy-five per
cent. That is considered a very good record,
everything taken into account. The fine coal
situation has not been quite so strong because
naturally the increased output of domestic coal
has thrown the supply and demand for fine coal
slightly out of balance. However the recession
has been as marked as mi.ght be supposed and
five cents a ton will measure the decline in the
last week. Prices up to Thursday were:
Franklin County —
I. ump .
Kgg .
No. 1 nut .
No. 2 nut .
Mine run . .
2-incli screenings...
F. O. B. F. O. B.
Chicago. Mines.
$2.80
2.80
2.80
2.45
2.15@2!20
1.55@
$1.75
1.75
1.75
1.40
1.10@1.15
.50@ .00
The situation in Williamson county is interest¬
ing, intricate and significant. The best known
coals are selling strongly at $1.75 and the mines
are sold up for perhaps ten days to two weeks
ahead. Some of the other coals that are not
so well known are selling for $1.()0 and the
mines are running about sixty per cent of ca-
liacity. In places some of the smaller mines in
order to .get tonnage, are accepting even a lower
figure, but their price does not convince the
buyer on the score of quality. Steam sizes have
been moving fairly well, everything considered.
Number two, three, and four nut have not been
quite as strong as they might be, but neither have
they been weak. The indication is that steam de¬
mand is making some improvement. The prices
up to 'riiursday were :
F. O. B. F. n. B.
Williamson County — Chicago. Mines.
lump . $2.65@2.80 $1.60@1.75
Kgg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.65@2.80 1.75
No. 2 washed . 2.45 1.40
Saline county coal is movin.g mainly to the
steam trade although domestic orders have been
quite heavy in the last ten days. In common with
the other fine coal markets. Saline screenings
have gone off perhaps five cents a ton, but even
so, they are selling around seventy cents which
is a good figure for this year. The prices up to
Thursday were :
F. 0. B.
F. 0. B.
Saline County — -
Chicago.
Mines.
Lump .
$1.75
Mine run .
. 2.20
1.15
Screenings .
. 1.7o
.70
i;4-inch lump .
. 2.35
1.30
Springfield coal has had an evenly balanced de¬
mand within the last week. That is, there has
been an increase in the buying on domestic coal.
There has been almost as much of an increase in
the demand for steam coal. The market has
been quite satisfactory with the exception that
screenin.gs are now selling for fifty or fifty-five
cents, whereas they were five cents a ton higher
a week ago. Some cases have been reported
where screenings have sold for less. The prices
up to Thursday were :
Springfield —
F. O. B. F. O. B.
Chicago. Mines.
Lump . . . .
Fgg .
Nut .
Mine run..
Screenings
$2.47
2.47
2.47
1.87
1.32 @1.37
$1.65
1.05
1.6.5
1.05
Knox county steam coals have been in good
demand and improvement in the buying of do¬
mestic coal has suggested a rise in price which
may be announced soon by some of the leadin.g
ouerators on domestic sizes. The prices up to
Thursday were:
Knox County —
F. O. B. F. O. B.
Chicago. Mines.
f-ump
Fug .
Mine run
Screenings
$2.37 $1.50
2.37 1.50
1.87 1.05
1.02 .75
Clinton mines which had sold up their steam
output mainly on contract have gained their in¬
crease in production mainly through an increase
in domestic orders coming from points in Indiana
mostly. The market is stronger and a rise in
price in the near future is indicated. 'The prices
up to Thursday were :
F. O. B.
F. 0. B.
Clinton —
Chicago.
Mines.
Domestic lump .
. $2.27
$1.50
Kgg .
. 2.07
1.36
Nut .
. 2.07
1.30
Mine run .
. 1.87
1.10
Screenings .
.65
Coke has been unchanged within the last week
both as to tonnage and prices although there is an
upward tendency in the market and sellin.g prices
may soon be higher. The prices up to Thurs-
dav were :
F. O. B. F. O. B.
Coke — Chicago.
Connellsville . $4.85ffl5.00
By-product, foundry . 4.')0@5.10
By-product, egg and stove . 4.75
Bv-product, nut . 4.75
Gas house . . 3.85@4.00
No. 12]
235
THE BLACK DIAMOND.
Pittsburgh Trade.
Prospects Both on Lake and Export Coal
Give a Better Tone to the
Entire Trade.
Office of The Black 1)i.\.\u)NI),
l.)0:i Oliver Building,
PiTTSBUKOH, Pa., September 10.
While there has been no marked activity in the
coal market of this district the past week, there
has been considerable interest shown in future
prospects, and a number of interesting events
transpiring that have attracted the attention of
the trade. Contrary to what has been the ex¬
perience of sellers visiting the lake trade, there
seems to be a marked difference in the attitude
of the lake buyer, who now seems very willing
to listen, and is even beginning to ask some ques¬
tions that indicate that some coal may be wanted,
and that soon by those uncovered ; while ship¬
pers under contract are getting quite busy on
forwarding orders, the expected rush to get
their required supply through before navigation
ceases, apparently having started. This is par¬
ticularly the case in the Pairmont, W. Va., region,
that section having rate advantages over Pitts¬
burgh that tell particularly during a season such
as the present.
A decided shortage of car capacity has fright¬
ened some "stand off” buyers who are now get¬
ting a little nervous as to quick delivery, and are
making very pointed inquiry. This shortage is
becoming more marked every day, and will have
a beneficial tendency, as it will make buyers in
general a little more active. Pittsburgh-Pairmont
operators are all feeling the effect of this car
shortage just now, though the situation has not
become acute as yet, particularly westward, as
for some unexplained reason general freight ton¬
nages have been falling off west to quite an
extent.
The little spurt in domestic Imying that de¬
veloped with the cold spell the last of August
and September 1st, has received a severe shock,
from a week of the hottest weather of the year,
the mercury at this point ranging from eighty-
eight to ninety-two degrees for several days past,
putting the coal man and bin back in seclusion
and bringing the refrigerator and ice man into
the foreground. Some eastern business was
offered the past week, and one operator took
contracts amounting to .>01) to 800 tons daily on
renewals, at an advance of ten cents per ton over
last September’s figures, but the sentiment daily
develops that it is wiser for some operators to
conserve their output, in view of many features
of the market, and the light amount of stocking
that has been taking place, and the underlying
influences that are liable to lift the market to
points considerably above today’s very irregular
quotations, which are very nervous and likely to
remain so, while the present tension in diplomatic
circles exists. In the Connellsville coal region,
and throughout West Moreland, Fayette and
Washington counties, more and more action is
seen and an increased demand for labor shows
that prospects are brightening.
Payette county is particularly well pleased with
the turn of affairs in the J. V. Thomson inter¬
ests. At the request of eighteen attorneys, rep¬
resenting creditors. Judge J. Q. Van Swearingen
granted Josiah Vk Thompson an extension on
the receivership decisions until next March 14.
The action of the further extension was ojjposed
by only two attorneys.
The general opinion of the members of the
bar who represent clients who are secured and
unsecured creditors of Mr. Thompson was that
Mr. Thompson himself is the whole salvation to
the financial situation there.
"Thompson is my hope, and he’s your hope,
and he’s the hope of your clients and the hope
of every client represented here,” said W. C.
McKean. “I am satisfied that he’s accomplished
in untold measure more than any one else can
accomplish.”
That the disturbing of Mr. Thompson’s affairs
at present would be disastrous not only to his
properties, but to the entire community was
voiced by a large number of attorneys. They
stated that an extension would be for the best
interests of the entire community.
River shippers are handicapped by the low
stages of water, and large fleets of loaded coal
are accumulating in the lower harbor here, await¬
ing a shipping stage, while empties are anchored
at upper docks, ready to be taken up to the third
and fourth pools for loading at Monongahela
river tipples.
Somewhat more action has developed in fur¬
nace coke, with advancing pig iron prices in
Pittsburgh, $1.) V'alley, being today’s quotation
in this district, though the action has thus far
resulted only in considerable inquiry coming out
for 191(), and the question of price is the i)oint
of difference between the buyers and the sellers.
The i)ast week’s quotations maintain on spot,
and for delivery during the fourth quarter, though
some coke for October and Noveml)er is said
to have been sold at $:b The Sharpsville Fur¬
nace Company, and the Shanango Furnace Com¬
pany have been making some inquiry for li)H>
coke the past week, but producers are wary of
quoting anything but a decidedly advancing scale
of prices, based on the pig iron situation, and
no deals have been closed that we hear of, though
several operators are figuring for the business.
Foundry grades are not weakening any, and the
tendency is toward even a firmer stand for any
future deliveries. Additional ovens are being put
into operation at various plants, and some that
have been idle many months will be working
first of the coming month.
Orders have been issued to begin work on the
cleaning up of two coke plants in the Connells¬
ville region — Thompson No. belonging to the
Thompson-Connellsville Coke Company, and
Tower Flill No. 2, belonging to the Tower Hill-
Connellsville Coke Companj'. Two hundred ovens
will be put in operation at the first plant and
they are expected to be ready to fire by the first
of October. This will offer employment for
about 800 men. The entire plant consists of 400
ovens and when running full gives employment
to about .>00 men. Thompson No. 2 has been
idle for two years.
Tower Hill No. 2 will be put into operation
just as soon as the ovens can be cleaned out
and put into the proper shape to fire, about the
first of next month. The combined capacity of
Tower Hill No. 1 and No. 2 is 30,000 tons, and
when Tower Hill No. 2 begins operation it will
do so to the extent of 8, .500 tons. This is about
sixty per cent of its entire capacity. ,
Personal and News Items.
George A. Magoon, president Commonwealth
Fuel Company, is home from a summer vacation
spent in Canada.
.4 contract has been closed by the Consolida¬
tion Coal Company with the Egyptian railways
calling for the delivery of 00,000 tons of coal
in the near future.
The Berwind-White Coal Mining Company is
beginning to produce coal to be shipped to Italy
as a part of the big 300,000-ton order recently
awarded to the concern.
The Hazel Kirk and Dunkirk mines of the
Pittsburgh-Westmoreland Coal Company, at
Charleroi, have resumed operations, giving em-
p'.oyment to about 400 men.
The new by-product coke plant of the La Belle
Iron Works will be built north of Follansbee in
Brooke county, W. Va. There are to he ninety-
four ovens in the new plant, and it will cover
an area from six to seven acres. It will employ
between 17.> and 200 men and will have a pay¬
roll estimated between $200, OOH and $300, OOO a
year. The directors of the LaBelle have been
working on plans for this by-product plant for
almost a year.
Pennsylvania charters have been taken out by
the Elk Brook Coal Company. Capital stock,
$10,000. Treasurer, Charles E. Bradbury, Scran¬
ton, Pa. Incorporators ; John G. Mc.4skie, Hu¬
bert F. Warner, Thomas P. Bradbury, Scranton,
Pa.: Harold L. Mc.4skie, Blakely, Pa., and the
Meadow Hill Coal Company. Capital stock,
$.>,000. Treasurer, W. L. Houck, Scranton, Pa.
Incorporators: Frank P. Benjamin, Peckville,
Pa.: Alay Houck, Scranton, Pa.: Mabel E. Ben¬
jamin, Peckville, Pa.
Denver Trade.
Denver, September 10. — (Special Correspond¬
ence.) — Market conditions show considerable
improvement this week as compared with that
of last week. The lignite business is particu¬
larly encouraging and bituminous is in much
better demand. Of course, there is no general
rush, but the increased volume is sufficient to
indicate that the jirofitable season is rapidly
approaching. Western Kansas has been vis¬
ited with light snow and the weather is de¬
cidedly more to the coal man’s liking through¬
out this entire territory. Consumers are stor¬
ing quite freely now. not only lignite, but bitu¬
minous and Colorado anthracite as well.
There is now a good demand for threshing
coal in northern Colorado and southern W’yo-
ming, and this has resulted in a better lignite
tonnage than at any time since e'arly spring.
Both Trinidad and Walsenburg districts will
show an increase in output of ten per cent
oyer last week, and Canon City mines will
record an output for the week of aliout fifty
per cent of maximum capacity. Routt county
mines are running full time and are feeling the
better demand to their full share.
Decidedly cold nights, if continued, will wipe
out an indicated surplus of all grades of slack,
and prices are stronger than for some weeks.
The following prices are ruling for lignite
coal, f. o. b. mines: For Denver delivery —
Lump, $2.35 to $2.65: mine run. $1.50 to $1.65:
slack, $1.05 to $1.25. Country points — Lump,
$2.50: mine run, $1.55 to $1.65: slack, $1.05.
T'win Cities Trade.
Minneapolis and St. Paul, September 16. —
(Special Correspondence.) — Winter is almost ap¬
parent in this part of the country. The daily
newspapers in Minneapolis this week contained
articles relating to a prospective "coal shortage.”
This is one of the harbingers of colder weather.
Shortly after these articles appeared there was a
heavy frost, which is a certain indication that the
advent of consuming weather for fuel is at
hand.
While accumulated figures contined to show
that the northwestern states will return one of
the heaviest crops on record, the actual ship-
pir.g of farm products at present is much de¬
layed. Wet weather for nearly a week has pre¬
vented threshing in many localities, and unless
the weather changes, it looks as if some difficulty
would be encountered in some sections in thresh¬
ing all the crop before the snow falls. The mar¬
ket for agricultural products in the belligerent
European countries is waiting on the billion dol¬
lar loan, so that alto.gether not as much grain
is lieing sent forward as there should be. The
transportation companies are in a good position
to handle a larger movement of all commodities,
and therefore no difficulty is being experienced in
getting coal forward promptly.
In the dock trade, prices on standard .grades of
bituminous lump coal continue ragged. Three or
four companies are engaged in destructive price
cutting, and the prices have nearly reached the
undesirable basis realized a year ago for these
products. On the other hand Illinois and Indiana
soft coals are being held steady at prices very
close to circular quotations. The imminent rate
advance of ten cents a ton to Minnesota and
Iowa points is bringing in an increased number
of orders. Dealers are delaying the shipment
until the latter part of the month as much as
possible, and undoubtedly the movement from
the mines into this territory the last ten days
or two weeks of the month will be heavy. This
will result in an accumulation of fairly heavy
stocks by the time the advance is effective, and
until there is consuming weather after that quite
naturally there will he a lull in business.
Collections are extremely backward on account
of failure of many farmers to market their grain.
Current quotations on all grades of coal sold
in the Twin City market are as follows:
■ ANTHH.ACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 5.50 6.70
Buckwheat . t.OO 5.20
BITUMINOUS.
Splint, screened lump and stove . $3.30@3.40 $1.20@4.36
Splint, dock run . $3.10 $4.06
Hocking, screened lump and stove. 3.30@3.40 4.26@4.36
Hocking, dock run . 3.00 3.96
V'oughiogheny, gas, lump and stove 3.30@3.40 4.2C@4.36
Voughiogheny, gas, dock run.... 3.10 4.06
Pittsburgh vein, lump . 3.30@3.40 4.20@4.36
Pittsburgh vein, dock run . 3.00 3.96
Pocahontas, screened lump or egg 4.75 5.71
Pocahontas, screened lump and
egg mixed . 4.50 5.46
Pocahontas, mine-run . 3.25 4.21
Cannel, lump . 5.25 6.21
Smithing, bulk . 4.25 5.21
.Smithing, in 100-lb. sacks . 6.00 6.9c
Briquets, anthracite . 5.00 5.96
Briquets, smokeless . 5.00 5.96
III the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows :
Southern Illinois chunks . $1.05@ 1.75 $3.S5@3.05
Southern Illinois egg . 1.65@i.75 3.85@3.95
Southern Illinois No. 1 nut . 1.65@1.75 3.85@3.95
Southern Illinois No. 2 nut . 1.2.o@1.4() 3.4.5^3.00
.So jthern Illinois No. 3 nut . 1.10@1.25 3.30@3.4r)
Southern Illinois run of mine... 1.15@1.25 3.35@3.4.5
Southern Illinois 2'in. screenings .60@ .70 2.80@2.90
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
236
THE BLACK DIAMOND
[September 18
Cincinnati Trade.
While the Larger Steam Business Has
Been Good, the Domestic
Trade Is Quiet.
Cincinnati, Ohio, September 16. — {Si'ecial
C'oyrcspojidciicc.') — The situation m this territory,
while somewhat flattened out hy the hot spell
of the week, has been reasonably hrm, taking
into consideration all the factors of the case.
There has been no material chan.ge in the smoke¬
less conditions and they are moving along smooth¬
ly and to the great satisfaction of the operators.
The prices scheduled for September have been
maintained generally and the lake movement and
the tidewater delivery, have all been very satis¬
factory. . , .
The domestic demand in the interior and to
the north has not been as expected, owing prin¬
cipally to the heat, yet many of the contract
dealers have not ordered their shipments sus¬
pended, indicating that they have become tired
of the .waiting game and are preparing to stock
to the full. But little need be said, therefore, of
the smokeless situation except that it is held
hack somewhat by the actual shortage of cars,
especially along the Chesapeake & Ohio Railway.
The splint situation is becoming much better,
hut little cheap coal being in the market to em¬
barrass the operations of shippers. A few small
operations, here and there, feel that they must
dispose of their coal regardless of price, but
they are much fewer than four weeks ago and
are steadily growing fewer. Some of the large
splint operators are turning their attention to the
export trade now, and South America is being
inspected as a promising field. Fine inquiries are
coming from that section of the continent and
some shipments have already been arranged and
started. Several bids were registered from here
also on the Panama trade. In general it may be
said that the advance in price on splints in the
past sixty days has been about fifteen cents on
all grades, but some of them were so far under
the price that should have been required that
even this advance brin.gs little relief. Prepared
sizes are going to the lakes in better volume and
it is estimated by traveling salesmen who have
come out of the lake territory, that that territory
is about 2,000,000 tons shy of the amount usually
stocked there and that in event of a cold winter
a shortage is sure to be felt about January. It
is also stated by operators that the movement of
coal to the northwest is probably about 100 per
cent advance over August in the same period.
Prices of this week may be quoted as follows :
Winifrede: 4-inch block, $1.60; 2-inch block,
$1.50; run of mine, eighty-eight to ninety cents;
washed nut, $1.35 to $1.45; washed egg, $1.50;
washed pea, $1 ; nut and slack, spot, sixty-five
cents, contract, seventy-five to eighty cents. Aver¬
age West Virginia splint: 2-inch, $1.40; mine run
(stron.gX eighty-five to ninety cents; inferior,
fifty-live cents; nut and slack, sixty-five cents.
In the Wyatt field the prices are: 4-inch block,
$1.60; 2-inch block, $1.45; run of mine, ninety
cents ; nut and slack, seventy-five cents. In an¬
other nearby field, 4-inch block, ordinary, $1.25 to
$1.40; better, $1.45 to $1.70; 2-inch block, $1.05
to $1.15; mine run slow at seventy-five and eighty-
live cents ; nut and slack, forty-five to fifty cents ;
4-inch mine run, sixty to seventy-five cents. Now
in contrast a Kentucky quotation comes in : Large
hlock, $1.80; washed round, $1.70; run of mine,
none made; washed nut, $1.50; nut and slack
absorbed so far by contract, except in a few in¬
stances where it is readily sold at seventy to
seventy-five cents. In another field the best black
brings but $1.25 and Miller’s Creek is sought
eagerly at $2.10. In Logan county, W. Va., the
following is an avera.ge of most of the produc¬
tion : 3-inch block, $1.25 to $1.40; 1^-inch, $1 to
$1.15; run of mine, seventy-five to ninety cents;
egg (weak), seventy-five to ninety cents; nut
and slack, forty-five to sixty cents.
The car shortage is no phantom. It is on the
mines. The labor scarcity is becoming emphatic,
but is expected to disappear when the fall min¬
ing opens out. Higher prices will come, accord-
in.g to the statement of leading operators here,
with the very first indication of approaching cold
weather, such as has been experienced in the west,
the past week. While a few contract orders were
suspended a few days the past week, some con¬
tract makers “came across’’ with decent contracts
for their season’s supply of domestic. This re¬
lieves orders for steam sizes, in many cases, and
quickens shipment when cars can be had
Cincinnati Trade News.
Kuper Hood of the Houston Coal Co., and
I'rank B. Stewart of the Winifrede Coal Com¬
pany, were in Chicago this week looking after
Chicago trade.
W. H. Kerruish, formerly with the Norfolk
& Chesapeake Coal Company, is now on the coal
staff of the Matthew Addy Company, to cover
Ohio territory.
R. S. McVeigh, vice-president of the Island
Creek Coal Sales Company, is in New York at¬
tending a conference of coal men on the rate
proposition.
E. C. Minor, vice-president and general man¬
ager of the Reliance Coal & Coke Company, re¬
turned this week from his vacation in the east,
where he enjoyed the sea breezes at Atlantic City
and paid New York; a visit.
Traveling Auditor H. H. Snoderly of the head¬
quarters office at Baltimore, of the Consolidation
Coal Company, is in the city making the annual
audit of the company’s books in the local offices.
He will remain a week.
J. E. Soulsby, a well known coal man of Crown
Hill, W. Va., stopped over in Cincinnati a few
hours the latter part of the week to call on
Cayle E. Weber of the Chesapeake & Ohio Coal
& Coke Company. He was on his way for a stay
this week in Chicago.
The railroads of this territory are undoubtedly
stocking coal along their lines with a double
purpose. Ihe first is to secure the use of the
car equipment while it can be done and the sec¬
ond is to have the coal ready for any emergency
of strike, flood or severe cold weather.
John M. Wright, president of the Raleigh Coal
& Coke Company, returned to his desk Monday
after a summer’s vacation at Watch Hill, R. L,
where he could run down to the coal docks along
the coast and keep tally on the export situation
when necessary. He hrou.ght his family home
with him.
Quin Morton, president of the Imperial Coal
Company, of Burnwell, W. Va., and the Imperial
Coal Sales Company, of this city, who was taken
ill at the Sinton Hotel in this city August 1,
was taken home to Burnwell Eriday of last week
and is reported from there as being still weak
but much better and improving slowly.
The Winifrede Coal Company lost a barge
laden with about 500 tons of coal at Hall’s Land¬
ing, just across the river from Cincinnati on the
Kentucky side. The barge had been damaged by
an accident a few weeks ago, having been run
into by another boat. Before it could be re¬
paired it went to the bottom. Preparations are
being made to raise it.
R. A. Hord, general sales manager of the Mid¬
dle West Coal Company, has just recovered from
a severe attack of paralysis induced by too close
application to business. He had taken no vaca¬
tion in a number of years and had decided to take
one this year. In his work of cleariq.g up con¬
tracts preparatory to taking the vacation he over¬
exerted himself. He will be compelled to take
a long vacation to recuperate.
Louisville Market.
Louisville, Ky., September 16. — (Special Cor¬
respondence.) — Undoubted improvement in
fundamental business conditions has been go¬
ing on in the sections dependent on Kentucky
coal tonnage for some weeks past, but the
gradual improvement in prices and demand
has been halted to some extent by the unsea¬
sonably hot weather prevailing over most of
the south and much of the north. However,
even during the past week of unseasonable
heat, prices and demand have at least held
their own, and with the advent of real autumn
weather and the turn of the month into Octo¬
ber. coal producers are optimistic of seeing
materially better conditions.
The coal production in eastern Kentucky
during the past several weeks has probably
been heavier than during any previous period
in the history of coal mining in this state.
'I'hose mines which have run sufficiently dur¬
ing the previous depressed business conditions
to retain their organizations intact, have been
moving a large tonnage. Car shortage so far
has amounted to a loss of only one day per
week during the last several weeks, but it is
more than probable that with the heavy de¬
mand in October, the Louisville & Nashville
Railroad, at least, will fall short by a consid¬
erable margin of supplyin.g the necessary cars.
Southern Railway and Illinois Central mines
may also expect to find an increasing short¬
age of equipment.
Producers of good domestic coal are now
asking from $1.60 to $2.10 for block coal for
the remainder of September, and from $1.75
to .$2.25 per ton for the month of October.
Coals of old established reputation seem to
be moving with a fair degree of freedom at
these figures, but many mines whose product
is yet unestablished in markets, or which are
lacking in sales organizations, are putting out
coal at much lower prices from time to time,
with resultant ill effects to the market in gen¬
eral. Screenings have been in rather plentiful
supply, but have not been sacrificed during
recent weeks, which, in view of the heavy pro¬
duction of same, indicates that later on, should
business conditions remain as at present or
improve further, a high level of prices for
screenings may be expected.
Duluth Trade.
Duluth, Minn., September 16. — (Special Cor¬
respondence.) — The railroads are buying coal
much more freely as the demand for more motive
power is developing because of the harvest. Cars
are being sent freely to the west for the new
crop and as the hauling has already started for
the elevators at this end of the line, more steam
is necessary. But the buying of storage coal
liy the roads is evidently not to be, for they
are still following the piecemeal policy.
Business from the west, among the dealers
is showing signs of growing, and it is fully
expected that from now on it will show an in¬
crease for the reason that dealers are known
to be only lightly supplied. They brought next
thing to nothing last year and have delayed
ordering this year until the crop situation would
develop and the climatic conditions demanded
attention. The result is that they have pur¬
chased nothing, comparatively speaking, this year,
and heavy purchases are due. The assurance of
an immense crop with good prices, even though
grains do go lower than they are now, makes
it almost certain that the purchases this fall
and winter will be fully up to the normal of
other years.
Receipts of late, have been about normal, but
reports from the east to the effect that more
charters of tonnage are being made for coal to
come west indicates a heavier movement during
the rest of the navigation season.
The anthracite situation is brightening and
more of the hard coal is being ordered as time
goes on. Indications are that a fine business in
hard coal will develop in a very short time.
At Fort Williams and Port Arthur, Ont., last
week, coal came in rather slowly, according to
advices from there. Only five cargoes of soft
coal and two of anthracite were received, and
only two more were reported on the way. Busi¬
ness to the Canadian west was on the increase,
and the railroads are taking a good deal for their
own use, especially the Canadian Northern.
Omaha Trade.
Omaha, Nebr., September 16. — (Special Cor¬
respondence.) — Orders for coal have been coming
in a little more freely the last week, buyers realiz¬
ing the fact that it will only be a matter of a few
weeks until we can expect winter weather.
Prices are firm ; very
little transit
coal being
offered. The following
prices prevail
Mines
Omaha
Southern Kansas —
Nut .
_ $ 1.85
$ 3.20
Slack .
_ 1.35
2.70
Franklin County —
Lump .
4.00@4.15
Kgg .
4.00@4.1.5
Nut .
4.00@4.15
Williamson County —
I-ump . .
. 1.45 @1.75
3.85@4.15
Kgg .
3.85@4.16
Rock Springs —
Lump .
_ 2.15
5.85
Nut .
_ l.GO
5.35
Arkansas Anthracite —
I.ump .
_ 3.70
0.60
Broken sizes .
_ 3.95
6.85
Routt County, Colo. —
Lump .
. 3.00
G.75
Nut .
. 2.25
6.00
Pea .
_ 1.25
5.00
Walsenburg District, Colo.
, —
0.75
Lump .
. 3.00
Nut .
. 2.25
6.00
Pea .
. 1.25
5.00
Southern Kansas Table
No. 12]
THE BLACK DIAMOND
237
I
Detroit Trade.
Detroit, Mich., September 16. — (Special Cor¬
respondence.) — Without large activity the local
market continues to develop along lines of im¬
provement in so far as regards the steam coal
trade, but weather temperatures of the July
brand during the last few days have put con¬
siderable of a crimp in the domestic coal busi¬
ness.
While shippers for the most part agree that the
volume of business being transacted in steam coal
is considerably short of what they believe should
represent normal market activity at this time of
the year, they are inclined to regard the present
situation as altogether favorable and seemingly
the forerunner of larger activity later.
The demand for fine coal is rather strong and
some of the shippers are experiencing some diffi¬
culty in getting stock around in time to meet the
requirements of their customers. Interest in the
larger sizes is less active. The slow progress of
the market toward improvement is explained by
some of the shippers as probably due to the fact
that many of the consumers are loaded up with
cheap coal, some from the purchase of large sup¬
plies offered at low prices to escape demurrage
and others because of the eagerness of some oper¬
ators and shippers to dispose of stock, which was
closed out at low prices under contracts that are
not yet terminated.
Prices are being maintained well around sched¬
ule, this condition applying also to stocks of
smokeless coal as well as Hocking and West
Virginia products. The firmer tendency of the
market is credited not only to a slightly broader
inquiry, but with equal truth to a lessened amount
of consignment stock. The consignment coal is
here yet and in considerable quantities, but it is
not at present a serious obstacle to direct ship¬
ment business.
Interest in domestic coal was showing a very
encouraging improvement as the result of cold
weather and much rainfall, until weather condi¬
tions reverted to midsummer heat. Because of
the change few consumers now indicate any desire
to buy or even learn prices on the stock which
they will later require. The same conditions
apply with equal force to the anthracite trade.
Retail dealers who have been hustling to distribute
stock are again dependent on a few dribbling
orders to keep teams and yard forces employed.
Despite the reiterated assertions of impending
changes for the better in the lake movement of
coal, there has been little increase in activity.
Most of the large freighters find coal cargoes an
impossibility. For small carriers coal is more
plentiful, though many of these are obliged to
wait or make the upbound trips light. Greater
activity in shipment by rail from docks at the
head of the lakes is reported to be developing.
This, in time, will result in heavier shipments
from Lake Erie ports.
Prices in the local market on mine shipment
orders are as follows :
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
2.50
Mine run .
2.30
Slack .
2.15@2.25
West Virginia Splint —
Four-inch lump . .
1.90@2.13
Two-inch lump .
_ 1.25@1.40
2.15@2.30
Three-quarter .
_ 1.10
2.50
Mine run . .
_ 1.00
2.40
Nut, pea and slack .
1.95@3.05
Smokeless —
Lump and egg .
2.25
3.85
Nut .
1.75
3.35
Slack .
Open
Mine run .
- 1.25
2.85
Kentucky Splint —
Lump . . .
3.00@3.15
Kgg .
2.65 @2. 80
2.05
Nut, pea and slack .
Fairmount—
Three-quarter steam lump .
. 85@ .95
2.25@2.36
Mine run .
. 70@ .80
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
_ 1.50
2.65
Shaker egg and nut .
- 1.15
2.30
Domestic lump .
_ 1.40
2.55
Three-quarter lump .
_ 1.25@1.30
2.40@2.45
Mine run .
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump . .
1.15
2.30
Mine run .
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
3.65
Cambridge —
Three-quarter lump .
_ 1.20
2.35
Mine run . .
_ 1.10
2.25
Pomeroy —
Two and three-inch lump . .
_ 1.60
2.76
Egg .
1.35
2.50
Slack .
Open
Michigan Builders Supply Company was lowest
of six bidders that submitted proposals to the De¬
troit recreation commission for supplying 300 tons
of stove or egg anthracite or smokeless bitu¬
minous coal for use of the Clara public bath¬
house. The bidders and prices were :
Anthracite,
S. and E. Smokeless.
*Michigan Builders’ Supply Co . $<5.66 $4.14
T. T. Sinclair . 7.15 4.90
K. L. Aylward . 6.70 4. .30
United Fuel & Supply Co . 6.75 4.50
P. Koenig Coal Co . 6.70 4.20
Parker Bros. Co., Ltd . 7.00 5.50
•Recipient of contract.
L. C. Sabin, superintendent of the United
States canals in St. Marys river, under direction
of Lieut. Col. Mason M. Patrick, corps of en¬
gineers U. S. A., in charge of Detroit district,
has awarded to George Kemp, Sault Ste. Marie,
Mich., the contract for supplying about 200 tons
of three-quarter lump on government boats or
scows, Sault Ste. Marie. The bid was $2.90. The
Perry Coal Company bid the same price. The
Port Royal Dock Company bid $3.00.
Receiving of bids for supplying twenty-five tons
of chestnut and 2,500 tons of anthracite to the
board of auditors of Wayne county, Mich., term¬
inated at 11 a. m., Thursday, September 16.
F. E. Reeves, secretary of the Detroit Coal
Exchange returned to Detroit Thursday from a
short business trip in the south.
St. Louis Trade.
St. Louis, Mo., September 16. — (Special Corre¬
spondence.) — The most important happening in
the trade this week is the announcement of the
sustaining of the five and one-half-cent increase
in freight rate to East St. Louis by the Illinois
Railroad & Warehouse Commission. Some
months ago rates to both St. Louis and East St.
Louis were advanced five and one-half cents per
ton and approved by the Interstate Commerce
Commission. The St. Louis advance went into
effect, but the East St. Louis rate being purely
an Illinois state proposition was suspended by
the Illinois state railroad and warehouse com¬
mission. This produced considerable confusion
as the St. Louis and East St. Louis rates were
constructed on a different basis, making quite a
discrimination against St. Louis, Mo.
Standard coal is moving well. Prices remain
about the same. The hottest spell of weather of
the summer is now upon us and has slowed up
business locally a little. Screenings have eased
off a bit more in the last week. Current prices
on standard coal are as follows ;
Standard Coal
6-inch lump . . .
6x3-inch egg . .
2-inch lump . . .
Steam egg . . . .
No. 1 nut .
No. 2 nut .
Mine run .
Screenings . . . .
F. 0. B.
F. O. B.
Mine.
St. Louis.
. .$1.20
$1.77}4
. . 1.10
1.67(4
.. 1.00
1.57J4
1.47(4
. . 1.00
1.57(4
. . .80
1.37(4
. . .85
1.42(4
.97(4
Demand for the Mt. Olive and Staunton group
coals is much better.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.40 $1.97J4
2-inch lump . 1.20 l.TTJ/j
Screenings . 40 .9754
Williamson county coals are in excellent de¬
mand and price is being held right up to circular.
Egg is not quite as active as lump, but the de¬
mand keeps abreast of the supply.
F. o. li. F. O. B.
Mine. St. Louis.
6-inch lump or egg . 1.60@1.7.5 2.22^2 @2.4754
3x2-inch nut . 1.50@1.75 2. 32}4 @2.4754
Screenings . .50 1.2254
Franklin county is going full blast. Demand
on domestic coal is very strong. Had it not been
for the little breathing spell made by the hot
spell Franklin county operators would be com¬
pletely snowed under, as it is they are all several
weeks behind with orders. The smaller sizes are
a little troublesome to move as such a tremendous
tonnage is being produced.
6-inch lump, egg or nut
No. 2 stove .
•Screenings .
F. O. B. F. O. B.
Mine St. Louis.
..$1.75 $2.4754
. . 1.40 2.1254
. . .60 1.3254
Anthracite is moving briskly, Chestnut is short.
Anthracite —
F. O. B. St. Louis.
Chestnut . $7.55
•Stove or egg . 7.30
Crate . 7.05
Smokeless —
F. O. B. F. O. B.
Mine St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.25
l!y-product coke (all sizes) . 4.50
The prices on Illinois soft coal f. o. b. East
St. Louis, Madison, Venice or Granite City, Ill.,
are 2554 cents lower than the above quoted St.
Louis prices.
Cleveland Trade.
Cleveland, Ohio, September 15. — (Special
Correspondence.) — Little, or no, improvement has
been noted in the coal business during the past
week. Steam consumers are going lightly on
their contracts, it is said, while the amount ot
spot coal purchased has not been encouraging.
The opinion has prevailed that most of the fac¬
tories in this city and surrounding territory are
running on almost full time, but jobbers and op¬
erators catering especially to this class of trade
say, if they are, they must be using other kinds
of fuel. Some disappointment has prevailed be¬
cause of this condition, since it was generally
believed some time ago that business would show
increased life by the middle of September, any¬
way. ’
On the other hand, some of the lar.ge pro¬
ducers in the eastern Ohio field believe that there
will be an awakening later on. This view is
partially due to an impending car shortage on
all the principal railroads entering that field. It
IS argued that if the shortage becomes acute, the
railroads will haul a much larger amount ot
Ohio coal, because of the possibility of a short
haul and prompt return of the cars, even thoagh
the rate may be lower than for the West vTr-
ginia product. I his will enable the producers
to regain their business and open the market in
a way that nothing else will except an increase
in the differential.
The lake situation has shown little change dur¬
ing the past week. It is said that a few oi
the shippers have noted a slightly better demand,
but the approaching car shorta.ge has resultea
in a decrease in receipts, if anything. Small
boats have been successful in securing cargoes,
but a number of the larger ones have been com¬
pelled to go up light for ore. No. 8 three-quar¬
ter coal for lake shipment is still being pur¬
chased at $1 per ton, it is said, although some
producers have refused that figure, preferring
to keep the coal in the ground.
The light receipt of slack from the various
fields has operated to maintain firm prices, bu.
the demand has not shown any increase for any
of the grades handled in this market. Eastern
Ohio slack has sold during the past week arounu
$1.55 or sixty-five cents at the mines. Pittsbungn
slack has ranged between fifty-five and sixty cents
at the mines, with a freight rate of $1 to this
market. Youghiogheny slack is quoted at sixty-
five cents at the mines, with the same freight
rate. While there is little Fairmount slack in
the market, the price for the week has been in
the neighborhood of fifty cents at the mines,
with a freight rate of $1.15 to this market.
Goshen coal has been in lighter demand than
usual for the past few days, perhaps because
of the prevailing warm weather. It has been
quoted from $2.20 to $2.30 for the three-quarter
and ifl.TS for mine run on track in this market,
the freight rate being seventy cents.
Some Cambridge coal has been handled here
this season. The quotation for the past few days
on three-quarter size has been $1.70 on track
here, with a freight rate of ninety cents.
Quotations on Pocahontas have not varied ma¬
terially durin.g the week, although the demand
has not been particularly strong because of the
hot weather. Lump is selling from $2 to $2.2."
and run of mine from $1.20 to $1.40 at the
mines, with a freight rate of $1.45.
Retail business had been very active for t'
weeks, but the mid-summer heat of the past
few days has caused a lull in the orders and
in anxiety for the delivery of coal purchased
earlier in the season.
Cleveland News Notes
J. J. Haslett, sales agent of the Henderson
Coal Company, Pittsburgh, was in this market
Tuesday.
No improvement has been noted in the condi¬
tion of C. L. Ayers of the C. L. Ayers Coal Com¬
pany, who is confined at his home by illness.
C. J. Andrews, formerly general sales agent of
the Sunday Creek Coal Company and now in
the jobbin.g business in Detroit, called on the
coal men here early in the week.
The movement of ore from the Ashtabula docks
is very heavy and it is said that there is an
impending car shorta.ge. The ore is going to
the Pittsburgh and Youngstown mills. During
the first week of this month the New York-
Central road handled 5,000 loaded cars to these
two points, the aggregate tonna,ge being 250,000.
238
THE BLACK DIAMOND
New York Trade.
Hot Weather Retards Anthracite Buy¬
ing — Bituminous Movement
Much Heavier
Office of Thu I’lack I^iamond,
New York, Sei)teml:)er 10.
The intensely hot weather, at tliis writing of
more than a week’s duration, has greatly re¬
tarded anthracite l)uying, lioth on the part of
the consumer and the retail dealer. The active
spurt of buying that commenced about two weeks
ago, was therefore shortlived. This week finds
consumers huyin.g iu very limited quantities, and
this is rellected in the wholesale market.
There is very little change in prices on spot
sales, and at New York tidewater ports, there
is e\-idently a (piantity of loaded coal on boats
awaiting ])urchasers. 'i'here is more coal pressing
for sale tlian the buying public appear to want at
the moment, tliough prices on individual coals are
nearer the winter circular than they have been
for some time. Some individuals are over-ship¬
ping the tidewater market, and this is preventing
those dealers who would like to see business done
at the winter circular, from securin.g an advance
in prices. I'urthermore, the Jewish holidays have
had no little effect on making the New York
market especially dull. In certain sections of
New York city, there is a very heav^y peddler
trade, and wdien these merchants stop to observe
their certain holidays, it makes business very dull
with certain of the large retail concerns who
have distributing plants in these sections of the
city.
The statement of shipments of anthracite coal
for the month of August was announced last
week, showing a movement of .5,330,831 tons, as
compared with 5,483,743 tons for August of 1914.
I'or the first eight months of this year, ship¬
ments reached 41, 800,341 tons, as compared with
43,021,389 tons for the corresponding period of
1914, or a decrease of 1,961,049 tons.
This week, most of the operations are working-
on about a five day per week schedule, and un¬
less buyers become more concerned about taking
anthracite within the next month or so than they
are at the moment, it is not believed that the
companies will be able to operate on a much
better schedule unless it is decided to store large
(luantities of coal for requirements later on.
With labor commencing to become short in
the anthracite fields, it is not believed that the
operators can very easily make up the shortage
in production, that so far this year amounts to
around 2,(K)0,(K)() tons. The trade is facing a
shortage of stocks, and both at tidewater markets
and at most of the lar.ge stocking centers in the
consuming markets, and this makes many of
them predict that consumers of anthracite coal
this winter are going to face a very serious short¬
age. During the past several winter seasons our
railroad transportation has been very free, due
to the lack of business in other lines, and al¬
ready many railroads announce that practically
all their equipment is busy. The continuation
of this prosperity on their part, which is fully
to be expected, due to the immense crops and the
movement of very large tonnages of munitions
for the European warring nations, indicate that
there is going to be practically no surplus trans¬
portation during the winter months at least.
Therefore, the trade argue that now is the logical
time to move anthracite.
The steam size situation is very little changed.
The demand for these coals is not increased.
rVices are easy on inferior grades and very
stron.g on the choice grades, which are very
short for spot market purposes. On September
1st, the full winter price list went into effect on
anthracite, tidewater prices being about as fol¬
lows :
Upper Lower
Ports. Ports.
Broken . $.5.10 $5.00
Kgg . 5.3.5 5.25
Stove . 5.35 5,25
Chestnut . 5.60 5,50
Pea . 3.55 3.45
Special grades of Red -Ash and other high
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows :
Pgg
Stove
Nut
!*ea
I>uck
$4.90 and up
5.00 and up
5.00 and up
3.25 and up
2.10 and iij)
Kice . 1,70 and up
Hailey . f. . . . 1.50 and up
The Bituminous Situation.
The liituminous situaliou continues to show
improvement. This is due to the fact that many
large coal consumers are calling each week for
lar.ger shipments, and the hunker and export
trades are also takin.g large (piantities of coal.
The spot trade in most sections is dull. How¬
ever the situation is believed to be greatly im¬
proved from the fact that a great many small
operators that heretofore have been urging buyers
to take their coal at almost any price, are now
in most instances, out of the market, especially
on good .grades of coal. In the past few weeks
they have been able to secure a sufficient num¬
ber of orders to keep their mines going on pretty
good time, and this is taking out of the market
a lot of surplus coal that would otherwise he
effecting spot prices.
A car shortage is bein.g noticed on some of
the biggest coal carrying roads. This is true on
l)oth the Pennsylvania and Baltimore & Ohio sys¬
tems. President Willard of the B. & O. stated
on Tuesday that although his road had only a
small shortage of coal cars on that day, that
there was not an idle car on the system. While
the shortage of coal cars was insi.gnificant, that
it w'as a very good comparison with the state
of business as existed some weeks ago when if
a coal operator would ask for one car, the rail¬
road would supply five, hoping that he would
load two.
So far. New' England consumers seem to be
less concerned about storing coal, or increasing
their receipts, than consumers in other sections
of the country. The movement of coal into New
En.gland, both by water and all-rail does not
seem to improve with the demand that comes
from other sections.
The export movement continues good, Balti¬
more during the last week loading appro.ximately
75,000 tons, and Hampton Roads ports showing
loadings of around 13(),0(>() tons. Bunker require¬
ments for vessels taking export cargoes are very
heavy, while more tramp steamers are reporting
at American ports, many of them calling for
grain cargoes, this movement now commencing
to show up.
The general business situation as concerns the
lar.ge consumption of coal has improved this week
due to the fact that many of the railroads have
started in to buy locomotives and other equip¬
ment. Railroad tonnages of all descriptions are
becoming heavier and this means an increased
use of coal for locomotive purposes. Railroads
throughout the east, w'ith the exception of the
New England lines, are storing coal at many
points, looking towards being prepared to keep
their lines operatin.g freely should a serious coal
shortage occur during the present winter.
At the New York harbor ports there is no
large supply of coal pressing for sale, although
there are accumulations of certain .grades of in¬
ferior coals, that can be bought at cheap prices.
Ciood grades of Pennsylvania coal sell at $2.75
to $2.90 ; ordinary grades at $2.55 to $2.05, while
inferior grades of West Virginia coal can be pur¬
chased at $2.35 and up. Slack continues very
strong.
The Vessel Situation.
There appears to he an ample supply of ves¬
sels of all description for current coastw'ise busi¬
ness. An advance in rates is anticipated on ves¬
sels for off-shore business, as a great many tramp
steamers are now bein.g attracted by grain char¬
ters.
We quote current rates on freight as follows;
From Hampton Roads to Boston, eighty to
ninety cents is about the range: to Portland
and points east of Boston, from ninety cents to
$1. To sound ports, eighty to eighty-five cents.
From Philadelphia to New England points, alitout
five cents under the Hampton Roads rates.
b'rom New York to Bridgeport or New Haven,
thirty cents; to New London and Providence,
forty cents ; to Fall
River
and New
Bedford,
forty-five cents ; to
Boston,
liftv-five
to sixty
cents.
Current quotations
on bituminous coal in spot
lots are :
Somerset County —
F. 0. B.
Harbor.
F. 0. B.
Mines.
Best grades .
$1.30
Medium grades .
1.10
Ordinary .
1.00
Cambria County —
Hest Miller vein . .
1.45
Medium grades .
. 2.70
1.15
Cheaper grades .
. 2.60
1.05
Clearfield County —
Best grade .
1.35
Ordinary grades .
1.00
[September 18
Indiana County —
Best grade . 2.80 1 25
Medium grade . 2.50 .95
Maryland —
Georges Creek big vein . 3.15 i.65
West Virginia Splint —
Ordinary grades . 2.40 .85
Best g.-s, }4-inrh lump . 2.65 l.lO
Best grade, run of mine . 2.65 .90
Gas slack . 60@ .75
New York Trade Briefs.
George AI. Dexter, of Dexter & Carpenter, Inc.,
No. 12 Broadway, spent Monday in Pittsburgh.
Joseph Gorman, of Gorman-Leonard Coal Com-
liany, of Worcester, Alass., was a New York
visitor on Monday.
J. A. Hill, president of the Knickerbocker Fuel
Company, No. 1 Broadway, returned late last
week from a vacation spent in Maine.
J. A. Renahan, vice-president of the Smokeless
I'uel Company, of No. 1 Broadway, is visiting
the West Virginia mining re.gions this week.
J. M. Leonard, .general sales agent of the
Brothers Valley Coal Company, No. 90 West
street, spent several days at the mines of his
company in Somerset county, Pennsylvania, this
week.
W. H. Carpenter, of Dexter & Carpenter, Inc.,
No. 12 Broadway, who has been in En.gland,
I'rance, Italy and other European countries for
the past three months, is now en route to South
America.
W. B. AIcQueen, of the Alden Coal Minin.g
Company, No. 1 Broadway, sailed on the steam¬
ship New York on Saturday for London. Mr.
McQueen will be abroad several months looking-
after Imnker contracts and export business for
his company.
The Buck Ridge colliery, of which Pattison &
Bowns of No. 1 Broadway, New York, are large¬
ly interested, and whose product they handle, re¬
sumed operations on August 20, after a shut¬
down during some of the summer months for
improvements.
Remltrandt Peale, the well known bituminous
operator, with headquarters at the Grand Central
Terminal, New York, who spends his summers
near his operations at St. Benedict, Pa., was at
the New York office several days last week, and
will spend more of his time in the city from
now on.
R. L. Thomas, for quite a number of years
located in New York as manager of the New
York office of the Bader Coal Company of Bos¬
ton, has severed hi$ connection with this com¬
pany, and resigned the position of vice-president
which he filled. Mr. Thomas is spending the
month of September on a farm in Columlna
county. New York. His future plans have not
been announced.
Willis H. Brown, who some weeks ago re¬
signed as vice-president of The Skeele Coal Com¬
pany, has purchased an interest in the Seiler-
Blanchard Company, of No. 1 Broadway, and has
l)een elected a vice-president of that company,
rile Seiler-Blanchard Company has arranged to
take lar.ger floor space, and a large suite of
offices is now being arranged for them on the
ninth floor. Mr. Brown has had a very wide
experience in the coal trade, and his new con¬
nection with a company headed by some very
able young men, will no doubt result most ad¬
vantageously to all of them.
The August table of anthracite shipments made
public by the Anthracite Information Bureau
last week, shows tidewater stocks on July 31
of 653,496 tons. It was pointed out that in case
of interruption in the supply of anthracite from
the mines, the city of New York would within
two weeks be without a supply of fuel. Ac¬
cording to the United States Geological Survey,
the normal consumption of anthracite in New
York alone is about 11,500,000 tons a year, or
nearly 1,000,000 tons a month, and the normal
supply of coal oi-i hand at all tidewater ports is
not more than 660,000 tons, or barely enough
to supiily this city’s needs for two weeks. While
a considerable tonnage of coal is kept in stor-
a.ge at points near the mines, this coal would
have to be reloaded in cars and reshipped, and
would be subject to almost the same delays as
the coal coming directly from the mines.
The Chesapeake and Ohio lines during July
carried to tidewater 2,055,975 tons of bituminous
coal, against 1,1^01,229 durin.g July, 1914. Coke
traffic during the same month totaled 21,930 tons,
against 25,o:i3 for July, 1914,
No. 12]
THE BLACK DIAMOND
239
Philadelphia Trade.
Warm Weather Brings a Lull in Buying
Just When Conditions Were
Most Promising.
Office of The Bl.-'lCK Diamond
1400 Land Title Building,
Philadelphia, September 16.
The weather man was the chief point of attack
and with just cause this week. Just when things
were brightening up and taking a turn toward
active business with the hard coal people, old
General Humidity butted in and wrecked things
generally. Cool nights had turned the minds of
the coal buyers in the homes toward their coal
bin and there was quite a little activity noted
ten days ago, but this has disappeared to a marked
degree. Retailers are not in the least askance
in saying that they are up with their deliveries
and the local business to be done is of the spot
order character — and this is not probable with
the mercury making new high records and the
heat running ninety in the shade.
Pea coal, which has been the under dog for
lo these many months is again assuming the cen¬
ter of the spot light. Both the companies and
the independents have evinced a strong disposi¬
tion to advance the price on this size twenty-five
cents a ton with the first of October. Storage
stocks and the anticipated heavy demand when
the small coal buyer enters the market is given
as the cause. While the circular price on this
size of anthracite has never changed during the
year, the price was dropped fifty cents on the ton
with the first of April, as was all other sizes.
Since that time the demand for pea coal has been
draggy and the set price rarely ranged more
than $2 a ton. Now that the size is firmer and its
activity increases with each of the fall months, jt
is felt that the circular price ought to come in
line.
Only one bright spot has appeared in the busi¬
ness of the week and that has been the increased
demand for steam sizes. Buckwheat coal has
been in good shape and the movement has been
well in accord with the tonnage of former years.
Movement to New England over the Port
Richmond coal piers showed a little less tonnage
for the week as compared with the amount that
went over the side for the corresponding week
of last year. Warmer weather to the north has
the same effect as locally and cut down on the
buying orders.
Bituminous Situation.
M'hile the general complexion in the soft coal
trade has changed little in the past week, the re¬
port from various sources has been that the
market was inclined to be spotty. Some_ of the
heavy shippers of bituminous have been increas¬
ing the output of their mines and have handled
the increase with little or no trouble. Few con¬
cessions in price have been heard of. This one
change in itself is indicative. While quoted
prices have changed little the concessions that
formerly were allowed figured to a great extent
on the price to the consumer. With the firm
market that started about three weeks ago, this
was gradually dropped and established prices
were held to. Now the prices asked must be had
or the buyer must look elsewhere for his supply.
Little or no contract coal is on the market and
the consumers who have been tardy in getting
their orders placed for their fall and winter
supply find now that they will have only the spot
market to depend upon.
Scarcitv of cars in the Clearfield and Somerset
districts held back some shipments early in the
week and Baltimore & Ohio operators had their
allotments shortened. The labor situation is still
the big query, some of the mines already re¬
porting that they are pinched for men.
At the piers there is little coal standing that
is anywhere near the time limit. This in the
face of the fact that the export shipments are
light and bunkerage has not been as active as a
couple of weeks ago, is taken as an indication that
local and close to home consumption has been of
a good character.
Quotations standing are : Somerset, best, $1.35
to $1.45; medium, $1,20 to $1.30; ordinary, qinety-
five cents to $1.15. Fairmont slack was firmer this
week with a nickel advance on the ton making a
range of fifty-five cents to sixty-five cents ; low
sulphur gas, $1.10 to $1.20; mine run, seventy to
eighty cents ; three-quarters, eighty-five cents to
$1.00. Western ^Maryland coals range eighty-five
to ninety-five cents for spot shipments. Greens-
burg offerings are firm with run of mine quoted
at $1.20 to $1.30 and screened at $1.35. Spot ship¬
ments for Clearfield have been made at $1.25 to
$1.35 for good iVIiller vein.
Philadelphia Trade Briefs.
Senator Horace A. Tompkins of Portage was
among the operators who visited Philadelphia
this week.
Joseph Hickley. chief of the bookkeeping de¬
partment of the Glen Brook Coal Company, spent
his vacation at the shore this week.
S. M. Martin, of the firm bearing his name and
his office force will spend Sunday and Monday in
Pike county on a fishing expedition.
W. A. M'ebb of the Empire Coal Alining Com¬
pany was away from his office this week on a
visit to the mines of the company in Cambria
county.
J. L. Collin, who represented the Pittsburgh-
Buffalo Company in this market for the last eight
years, made a trip to the gas coal fields of West
Virginia last week.
Willis H. Brown, formerly with the Skeele
Coal Company, but now with the Seiler Blanchard
Company, was among the trade visitors of the
week.
H. H. Hodge, auditor of the Quemahoning
Coal Company and of Somerset, Pa., made a
short call on the local office Wednesday. With
Airs. Hodge he was on his way to the seashore.
Joseph Gorman of the Gorman Leonard Com¬
pany of Worcester, Alass., was among the trade
during the week and said that prospects in that
section were brightening with each week that
spelled the approach of winter.
H. C. Barr, sales agent for J. S. Wentz &
Company was west the latter part of last week.
While in Pittsburgh he suffered a swelling of one
of his legs and was forced to return home. The
injury was better Alonday and he was able to be
about Tuesday.
George D. Spates, president of the ATaryland
Coal & Coke Company, and Airs. Spates, will
sail the last of this week for Liverpool on the
St. Louis. Air. Spates intends to visit several
points in France, relative to placing New River
coal for his company.
Cambria county operators who have been in
the regions lately say that the press for labor
has been noticeable in the past couple of weeks.
Agents for the steel companies have been scour¬
ing that section for men and miners have been
offered attractive wages to enter their employ.
A sudden call for 15,000 tons of coal for the
navy made on the Quemahoning Coal Company
early this week caused a small flurry in the local
harbor. A goodly part of the Atlantic fleet put
into this port for coal and with no advance no¬
tice of the requirements there was a general
scurry to fill the order.
The Susquehanna Coal Company have issued
invitations for their sixth annual contest of the
first aid corps, which will be held at Shamokin
on Saturday, September 25. The field day will be
held at Edgewood Park. Special trains for the
guests will be provided at Wilkes-Barre, Potts-
ville and Lj-kens.
The “Safety First” field day of the Philadelphia
& Reading Coal & Iron Company will be held this
Saturday, September 18, at the Lakeside Park
near Tamaqua. and teams from all of the mines
will be on hand to give a demonstration of their
work. Quite a large party of officials of the
sales force from the local offices will go up there
on a special car.
Several of the local coal concerns have used
the demands made by the hard and soft coal
miners of Pennsylvania as a business argument
why coal should be bought now. Whether it is
the cold bare facts that confronts the consumers
or whether it is that they realize the conditions
they face, yet. there have been a good crop of
orders as the result of this form of campaign.
Several new concrete coal pockets will be put
into commission this fall with the coming of
the heavy retail trade. Isaac Nicholson, who has
a new yard and pockets at Carpenter station, will
stock this new plant within the next week or so.
Other new plants are those of the Atlantic Fuel
Company, at 52nd and Baltimore ave ; W. C.
Shipley at .Allen’s Station, Alt. Airy; L. K. Pur-
ket & Brother at Wayne and Gucker Bros, at
Chestnut Hill, Germantown.
In the United States court on Friday last, cred¬
itors with claims aggregating $198,000 asked that
the Eastern Pennsylvania Coal Company be ad¬
judged an involuntary bankrupt. A meeting of
the board of directors held on September 7 re¬
sulted in the adoption of a resolution admitting
that the firm was insolvent. No estimate of the
assets or liabilities has been given to court. It
is expected that a receiver will be appointed this
week. Captain O. Malioux, president of the
concern, is the chief creditor with a claim for
$192,000 as money loaned. The Eastern Penn¬
sylvania Coal Company has an anthracite mine
near Aliddleport, Pa., and its annual tonnage was
placed at 120,000 and employed about 200 men.
The Imperial Coal Company has taken a suite
of offices in the New Weidner building. This is
a new company and is a co-partnership with the
officers as follows : Charles A. Owen, Johnstown,
president; James P. Thomas, vice-president;
Phillip E. Thomas, treasurer, and H. A. Ling,
secretary. The company will market the output
of the mines of the Shade Creek Coal Company
and the Smokeless Coal Company of Pennsyl¬
vania. The officers of the two companies are
identified with the new selling agency. They will
also handle coals from the West Virginia ter¬
ritory. The Smokeless and Shade Creek Com¬
panies formerly had offices in the Real Estate
Trust building. Within the next few months the
Imperial Company will open several tracts on
which borings are now being made near Johns¬
town.
Birmingham Trade.
Birmingham, Ala., September 16. — (Special
Correspondence.) — The extreme warm weather
which has prevailed in the district the past few
days has caused some slackage of orders for
domestic coal from consumer. When consumer
either fails or refuses to order, the yardman does
same and in course of time this condition gets to
the operator. This is the state of domestic mar¬
ket at present, and it is not as good as it was the
earlier part of the month, when the weather was
cooler, and some disappointment is expressed by
coal producers.
The steam and bunker trade is in fair condi¬
tion. It takes a large consumption to use all of
the coal which can be produced in this district,
and the demand for steam and bunker coal is not
always up to the production ; though with the
companies which are using river transportation,
and have contracts, the trade is in good shape
and a nice tonnage going south.
Coking coal is having a fine business, as the
consequence of the steady operations of furnaces
using coke and the by-product coke ovens which
use coking coal. The starting up of come old bee¬
hive ovens, which have not been in use for many
months has produced a good steady demand for
washed coal, and the larger companies of the
district, especially furnace people have been pro¬
ducing large quantities of coking coal, for in¬
stance the Bessie Alines of the Sloss-Sheffield
Steel & Iron Company, recently produced more
than 2,000 tons of coal in one day, against 1,700
tons as a daily average.
The Edgewater and Bayview mines, as well as
Docena of the Tennessee Coal. Iron & Railroad
Company, are producing record outputs. The
Sayreton mines of the Republic Iron & Steel Com¬
pany, the Banner and other big mines of the
Pratt Consolidated Coal Company, have been
doing well also.
The Empire mines and the Sipsey mines of the
Empire and DeBardeleben Coal Companies are
losing but little time each week in getting out
coal, while other companies with big mines are
doing as well as might be e.xpected at this time.
It is onh' the smaller mines which are not ex¬
periencing the full force of the large war order
for steel and iron, now being filled in the district.
September prices :
F. O. B. F. O. B.
Bibb County Domestic Coal —
Mines.
Birmingham.
Red ash Cahaba lump .
$2.75
$3.05
Red ash Cahaba lump . .
2.50
2.80
Red Ash steam size .
. 1.20@1.35
Frt. rate 30c
Jefferson County —
Fancy steam Pratt .
1.75
2.00
Run of mine Pratt .
. 1.20@1.25
1.45(3)1.50
Marv Lee lump .
. 1.40@1.50
1.80@1.90
Black Creek —
Fancy steam lump .
1.75
2.05
Washed nut .
1.75
2.05
Vt'ashed steam .
Frt. rate 30c
Mine run .
. 1.35@1.40
Frt. rate 30c
Tefferson Seam Steam Coal —
Mine run .
. 1.15@1.25
Frt. rate 30c
Walker County Domestic —
Carbon Hill lump .
1.70
2.00
Carbon Hill egg .
1.60
2.00
Horse Creek mine run .
. 1.00@1.20
Frt. rate 40c
Genuine Corona —
Lump .
1,85
2.25
F-g? .
1.75
2.15
Steam sizes .
. 1.25@1.35
Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 2.75 3.00
Cabaha No. 2 lump . 2.50 2.80
Montevallo domestic prices ranging from $2.75 to $3.00.
Blacksmith coal, washed and screened, per ton. $2 to
$2.25 at mines, with different rates to various points.
240
THE BLACK DIAMOND
[September 18
New England Trade
Boston, Mass., September 16. — {Special Cor¬
respondence.) — I he .N ew Kngland tidewater bi¬
tuminous trade have been very much interested
in the fact that the .Mexican Petroleum Com¬
pany have during the past several weeks opened
depots at both Providence and Portland, for
distrilniting oil, which is being brought in ves¬
sels from their wells in Mexico. -Ndvices from
Portland, .Me., state that as far as the coal trade
there know, they have made but one important
contract, this with the International Paper Oom-
panv. .\ccordin.g to rumors, this contract will
displace the use of approximately 100,000 tonsv
of bituminous coal each year. From Providence
comes the information that they are making some
deliveries of oil from their station, but up to the
present time have taken no contracts. They
nave secured opportunities for making trials ol
their product in comparison with coal in certain
instances, and the trade say it is too early to
see whether this oil is to replace coal to any
extent. So far none of the manufacturers have
had sufficient experience w’ith which to ^ make a
comparison. It is stated that one inanufactiiring
plaiit in Providence has burned oil since .\pril,
taking a Texas product, and that they are no;
ready yet to state if it is a success as compared
with coal. How'cver, there are a number of
manufacturing concerns in the Providence ter¬
ritory wdio are about ready to use oil. Hereto¬
fore 'the use of oil in New England tpritory for
steam making purposes has been restricted owin.g
to the fact that manufacturers would not go to
the expense of changing their furnaces to burn
oil when they were not guaranteed oil prices for
more than a year. Now conditions have changed
since the oil people are said to be making five
and ten year contracts at stipulated prices.
The bituminous situation is not greatly changed
this week. Receipts of coal from the southern
ports to Boston is only fair, and spot inquiries
are very limited. Contract movement is believed
to be better in certain directions, though not up
to the expectancy of the trade who have very
great hopes of seeing business stimulated during
the early part of September.
The heavy export movement has prevented sup¬
plies from accumulating at Baltimore and at
Hampton Roads, and it is also relieving some
of the pressure of Pennsylvania coals that come
into this market ordinarily through Philadelphia.
The anthracite trade has been hampered con¬
siderably by unseasonable weather. Present stocks
at New Eagland ports are not heavy, while a
few weeks of cool weather would mean a great
'deal towards the distribution of those stocks that
have accumulated at interior points.
Retail selling is largely controlled by the
weather, and dealers say that as soon as the
present hot wave passes, they anticipate great
activity in the Anthracite trade. Individual oper¬
ators are not so solicitous for orders as was
formerly the case, and the prices that they are
making to New England buyers, give an indica¬
tion that they are trying to line up their prices
with those of the companies. However, when one
has quite a tonnage of coal on hand, and demur¬
rage in approaching, discounts are freely made
to remove tonnage.
S. I). Forbes, for a number of years past gen¬
eral sales a.gent of the New England Coal & Coke
Company, has resigned to accept an important
position with one of Boston’s prominent whole¬
sale houses. .\n announcement of his new con¬
nection is anticipated in the next few days. It
is understood that Mr. Edward Page, one of the
vice-presidents of the company, will look after
the sales department temporarily.
Buffalo Trade.
Buffai.o. N. Y.. September 16. — (Special Cor¬
respondence.) — The shipment of anthracite by
lake is not making much headway at present,
being below the usual volume for this time of
year. The total for the past week was 109,6.50
tons, as follows: Chicago, 43,300; Duluth-
Superior, 40,350; Milwaukee, 17,200; Sheboy¬
gan, .5.800; Manitowoc, 3,000. The coal is go¬
ing principally to the three largest ports and
smaller ones are apparently being neglected
till toward the end of the season.
The unusually warm September weather has
put a damper on the demand from dealers and
scarcely anything is now being done. During
the recent cooler weather there was some stir
in the trade, but the past week has been very
quiet. The interest among dealers seems
likely to be postponed until there is another
cool period.
The bituminous trade has also had a re¬
lapse during the past week or two and shows
but little activity. The feeling is, how'ever,
better than some weeks ago and prices are on
a somewhat firmer basis. The slack market is
up quite a little from what it was a month or
two ago and the supply available is not at all
heavy. The average shipper has no big
amount of slack on hand and is holding what
he has for a fair price. The outlook for trade
this month is considered improved, as indus¬
tries are getting in a stronger situation. Steel
plants in this territory still have plenty of
orders and are running full time, or close
to it.
Operators are finding that cars are getting
less numerous, the chief trouble being to get
small gondolas. The different roads are fur¬
nishing the mines with cars on a pro rata basis
and at times there is much difficulty in getting
the cars needed. Labor is growing scarce also
at some of the mines and much trouble is
likely to be experienced this winter, if the coal
business gets active, for working forces will
not be adequate. Mines which have lately in¬
creased their working time have found it hard
to get what men were needed and this condi¬
tion will probably be more marked from
now on.
The coke market shows more firmness than
a few weeks ago, although handlers of coke
here have not lately marked up their asking
prices. Foundry coke is especially firm. It
is quoted here at .$4.25 for prompt delivery,
with much stiffness apparent to prices on fu¬
ture deliveries.
Buffalo Trade Briefs.
E. H. Read, sales agent of the Delaware,
Lackawanna & Western Coal Company, has
returned from a vacation trip to Quebec.
J. S. Hamilton, northern sales agent of the
Lehigh Valley Coal Sales Company, is spend¬
ing most of the week in Detroit, looking after
business.
Of the forty-eight candidates who will run
for councilman at the first commission govern¬
ment election to be held here in November,
one is a coal dealer — .-Mderman William G.
Humphrey.
Arthur Kuppinger, sales manager of the
Valley Smokeless Coal Company, Philadel¬
phia, was a visitor here a few days ago. He
said that the foundry coke market was show¬
ing considerable improvement
A Buffalo coal shipper reports a visit from
a leading New York financial agent in the
interest of placing orders for a large quantity
of war material, which he is in hope of find¬
ing a manufacturer for in this city.
The Buffalo & Susquehanna Railroad was
bid in at public auction on September 13 by
Morton G. Bogue of New York, who repre¬
sented the bondholders. His bid was $300,-
000. It is not definitely known what is to be¬
come of the road.
The contract for furnishing slack coal to
the Buffalo State hospital for six months from
October 1st, amounting to about 10,000 tons,
has been awarded to the Erick Coal & Coke
Company, of this city, at $2.18. The same
company had the contract for the previous
period.
Two tunnels have just been completed on
the Allegheny Valley division of the Penn¬
sylvania Railroad and opened to freight traffic.
They are located at Woodhill and Kennerdell
and by their use nine miles of running dis¬
tance is cut off. A third tunnel, located at
East Brady, will be ready for use in about
three months, according to officials.
The Lehigh Valley Railroad Company is
advertising the sale of a car of fifty-five tons
of bituminous coal at public auction on Sep¬
tember 24. The coal has been held as un¬
claimed freight over a year. It was shipped
by A. Judy of Lucinda. Pa., to the Morlock
Collieries Company, reconsigned to the West¬
ern New York Euel Company, and again re¬
consigned to the Buffalo Fertilizer Company.
.\nnouncement is made here that the Egerton
Coal Corporation has been organized at .Abing¬
don, Va., with a paid capital of $100,000. The
company owns valuable coal lands which it is
planned to lease to operating concerns.
Baltimore Trade.
Baltimore, AId., September 16. — (Special Cor¬
respondence.) — During a week when the United
States Government reported the lowest for gen¬
eral exports since the start of the European war,
Baltimore took just the opposite turn as regards
the sending out of fuel to foreign countries. For
the six-day working period ending with Septem¬
ber 11, there was e.xported from this port a
total of 74,186 tons of cargo coal. For the first
nine working days of the month the total to ex¬
port coal from this port reached over, 130,000
tons. While official figures are not yet obtain¬
able for a few days of the time, it is confidently
believed that the first half of September has seen
a movement of considerably more than 150,000
tons, and the trade would not be at all surprised
to see a new port record for a month set before
September is rounded out.
Aleanwhile the coal trade outside of export
husiness is somewhat at a standstill. In the soft
coal trade the demand is now pretty steady and
about equal to production for the time being,
while prices have now remained steady for the
past two weeks. Labor troubles are becoming
more apparent from a viewpoint of lack of avail-
able material, and this
situation is sure
to cut a
considerable figure in
price conditions
for coal
before long.
F. 0. B.
F. 0. B.
Fairmont —
Mines.
Baltimore.
Tin ee quarter .
. $0.S5@ .90
$2.23@2.28
Run of mine .
2.18@2.23
Slack .
1.98@2.03
Somerset —
Best .
2.43@2.4S
Good .
. 1.10@1.15
2.28@2.33
W. M. R. R.—
Freeport .
. 75@ .80
1.93@1.98
B. & 0.—
Freeport .
1.93@1.9S
P. R. R.—
Best South Fork .
2.48@2.53
Miller Vein .
. 1.10@1.15
2.78@2.S3
Ordinary .
2.03@2.13
A lull has followed the hot wave into the anthra¬
cite business. Coal men for the most part report
but few orders going on their books for household
storage for the fall and winter. It seems to take
cool weather to turn the thoughts of most of
these late purchasers to coal needs. Most of the
j’ards are endeavoring to maintain full stock of
smaller sizes, as a heavj' early demand in that
line is expected. The kitchen range is generally
started ahead of the larger heating apparatus in
this section, thus developing an early call for nut
and pea coals.
Speaking of scarcity of labor, occasioned partly
bv the great rush of Italians to the colors during
the past few weeks ; scarcity along other lines is
becoming evident. Scarcity of cars was felt last
week in both the Fairmont and Somerset dis¬
tricts under an improved tonnage movement that
is now taking place. It is easy to see that with a
genuine business revival this fall that cars will
be as scarce as the proverbial hen’s teeth, de¬
spite the large amount of new equipment that is
now being constructed, especially for the coal
carrying roads.
Vessel scarcity is a feature in this general
scarcity cry. Despite the fact that a great ton¬
nage was moved from Baltimore to foreign ports
the past week, it would have been much larger
had available bottoms been found for some of
the business offered here.
Some Trade Events.
The trade is much interested in a renewal of
the project to dredge the channel to the Curtis
Ray coal piers to a depth of thirty-five feet. Sev¬
eral members of congress, who opposed the move
before are understood to have been won over.
In his annua! report to the governor of Mary¬
land, State Alining Inspector William Walters,
shows that the production for the fiscal year end¬
ing Alay 1, was 3,688,611 tons, a loss of 551,033
tons as compared with the previous fiscal year.
This was credited as caused by shut downs in
part or in whole as a result of dull times indus¬
trially.
.A meeting of Fairmont operators here the past
week took up the question of a reconstruction of
the differential rates for coal shipments from
Ohio, Kentucky and West Virginia to the north¬
west. West Virginia operators hold that a re¬
construction of rates along the lines asked by the
railroads would be ruinous to their interests,
and a fight will probably be made before _ the
Interstate Commerce Commission on the subject.
The meetin,g, held here at the office of the Con¬
solidation Coal Company, will be followed by
another meeting this week at Fairmont, to con¬
sider action.
The Black Diamond
Vol. 55. No. 13
CHICAGO
COLUMBUS
SEPTEMBER 23, 1913
NEW YORK
PITTSBURGH
$3.00 Per Year
iTests Showing the Flexibility of House Furnaces.
Along last spring — it was cold and raw, if you
rcmemljer — I rnoved into a house in the suburbs
of Chicago. It was my first experience with a
house furnace for something like twenty years.
In the meanwhile I had been writing a good deal
about the theory and practice of combustion as ap¬
plied to larger units, but I had overlooked the
equally great possibilities in a household furnace.
Soon after moving in I decided to use my small
plant as a sort of an experimental station. After
seeing some of the possibilities, I decided to re¬
port to our readers from time to time the results
of any experiments here carried on. This article
is the first of such reports; others will come later,
no doubt.
To begin with, the house is relatively small,
having seven rooms and practically no attic. It is
rather difficult to heat because it has sixty \vin-
dows; the air has many points through which it
can enter. This does not make the easiest heating
problem. This is offset, in a small measure, by
the fact that the surrounding territory is full of
trees which break the force of the wind.
The heating system is one of the American
Radiator hot water types. The fire pot is cylin¬
drical, being about twenty inches across and near¬
ly three feet from the fire grate to the water
coils, which are at the top of the cylinder.
Begins Buying Coal Early.
The first thing I had to do was to buy some
coal ; the people who had moved out to make
room for me left an empty bin. As I was too
new to 'the game to do otherwise, I followed
their lead and got in one ton of anthracite range
for the furnace and for the hot water heater a
ton of anthracite pea coal.
For the first two or three weeks we just about
hobbled along. Although it was never really cold,
we never much more than had moderate comfort
in the lower part of the house; there was prac¬
tically no radiation in the upper rooms. It seemed
for a time that, perhaps, the fuel bed was not
thick enough, as I had fired only to a level with
the feed door. That meant I had maintained a
fuel bed about eighteen inches thick.
The experiment was tried of increasing the
thickness of the fuel bed to twenty-four inches
or to fully six inches above the lower level of the
feed door. This increased the heat in the lower
part of the house, but the upstairs rooms were
still raw and cold, especially at night. This
seemed, at first, to indicate that anthracite was
not a fuel for that furnace. I was just about
ready to abandon it when I looked at the water
indicator. This shows how new I was to such a
plant. I found that part of the water had been
boiled away ; it was fifteen per cent, at least, be¬
low what it should have been. That is, with a
hot water plant, the expansion due to the heat
would not force the hot water to circulate any
further than through the lower part of the
house. At least, that was my theory and I proved
it correct when the water supply was increased.
Then the fuel bed was reduced to eighteen
inches, as it had been in the first place, and I
had all the heat anyone could desire in such
weather.
An Accidental Discovery.
Then as the result of an accident, I made a
discovery. A man working about the place was
asked to shovel in some coal when he went down¬
stairs. He did so, and inside of fifteen minutes
or so the house was piping hot; it was necessary
to open the windows in order to cool it down.
The water could be heard boiling in the pipes.
I went downstairs and found the furnace un¬
naturally hot.
It developed that the man had thrown in upon
a bed of range coal two shovel sful of the pea
coal. It seems that this had slowed down the
draft just enough to make each particle of air
burn a particle of coal. Therefore we were get¬
ting much more heat from the same volume of
fuel than we had been getting before.
I learned that, for cold days when an intense
fire is needed, a mixture of range coal and pea
An Intimate Account of What Was Done
With One Furnace Using Three Kinds of
Coal in Four Sizes.
coal in that kind of a furnace would make a tre¬
mendously hot fire. Incidentally I was using
“Cross Creek” anthracite of both sizes. I have
not tried, as yet, any other kinds of anthracite,
but may do so before the winter is over. I may
try other sizes, too.
Beginning the Experiments.
Along about the middle of May I decided to
try some experiments. The theory upon which
I proceeded was this : In that kind of a fire pot
it is not economical to put in more fuel than
will just about reach the level of the feed door.
That being done, there is still a good fifteen
inches or more between the fuel bed and the low¬
er ring of the water tubes. It is a good two feet
from the fuel bed to the top ring of the water
tubes. I figured that, to get the greatest efficiency,
a fuel should have some flame. It need not have
a long flame, but it should have some. That is, I
wanted the coal to burn above the fuel bed as
well as on it.
The first idea was to get smokeless coal. I
did not care to try the mine run because that
presents some draft difficulties which I did not
want, just then, to work over, although I may
later. What I wanted to do was to keep the same
draft that I had and see what the result would be
by handling various coals of similar sise but of
other grades. This suggested the use of Poca¬
hontas or New River nut coal.
An inquiry, however, as to the price proved
that there would not be any saving in using that
size, as the retailer wanted about $7.25 per ton
for Pocahontas nut. I abandoned that size, as
a consequence.
The next thing was to get a fuel that had
some flame but at the same time would burn
without creating any dense black smoke. That
was quite a problem, seeing the small amount of
draft available. I figured it out in this way :
Illinois bituminous coal contains thirty-six per
cent volatile. Coke contains practically no vola¬
tile at all. Therefore a half and half mixture of
coke and Illinois coal would give me about eight¬
een per cent volatile, which is about the same
as Pocahontas nut. I decided therefore to use
a half and half mixture of coke and Franklin
county coal.
I got one ton of Christopher number two nut
as being closely comparable in size to anthracite
range and a ton of Solvay pea coke, that being
comparable in size to the anthracite pea coal.
That mixture would give me the same result, as
I figured, as anthracite range and pea coal.
A Curious Blunder.
The first experience was quite interesting. I
came home one evening to find a first-rate bed of
live coal as the result of a day’s firing of anthra-
site range. It made a splendid foundation for the
experiment which I wanted to make. Upon this
I shoveled about three shovelfuls of pea coke
and on top of that I put a shovel and a half of
Christopher number two nut coal. Then I opened
the ash door, closed the feed door and, taking
my youngster, went out for a walk.
I came back in twenty minutes only to find the
servant terror-stricken, my wife out in the yard,
the house full of smoke, and a neighbor or so
about to go to war. It seems that very shortly
after I had left the house there had been an ex¬
plosion in the top part of the furnace. This I
could not, at first, explain. When I looked at the
furnace, the explanation was perfectly simple. I
had opened the draft below, but had not opened
the damper. Thus I had given the bed of anthra¬
cite the air that it needed and it began to burn
furiously. But there was nqt enough air to burn
also the fresh bed of coke and bituminous coal.
All it had been able to do was to stew off their
gases. These had accumulated in spaces between
the water pipes because there had been no outlet
for them, the damper being closed. After a while
a tongue of flame had shot up from the fuel bed
and, of course, ignited the gases. The result was
the small explosion noted. This blew the lid of
the furnace and the check draft open. This, with¬
out doing any real damage, had frightened the
women and had filled the house with smoke.
Then I saw not only my fundamental mistake,
but how to correct it. To burn volatile matter
it is necessary to have something with which to
burn it. That requires an exposed bed of live
fuel below it. I saw that I could not cover com¬
pletely my live bed of coals and still burn the
gases which stew off first or before the carbon
catches fire.
In accordance with this revised theory, I
changed the practice completely on the second at¬
tempt. This time I made sure that the damper
was open. I opened the ash doors formerly and I
also opened the draft slide in the feed door. That
gave me not only air up through the fuel bed,
but over the top of it.
That having been done, I fired the coke on
the live coals and let it burn about fifteen min¬
utes. When it was in a ruddy glow, I fired
some bituminous coal.
I did not cover completely the bed of coals.
Leaving the drafts as they were, I went away for
about fifteen minutes and came back to fire the
bituminous coal a second time. After another
fifteen minutes I closed the ash pit door and
the draft slide in the feed door. Then I left
the fire alone. This was at about half-past six
o’clock at night. A little after eleven when I
was about ready to retire, I went down to see
the fire and it was burning beautifully; there
was still enough fuel to last, perhaps, two hours
more. I threw on a few shovelfuls of bituminous
coal, left the drafts open again for fifteen min¬
utes and then banked it for the night with about
two shovelfuls of ashes. The following morning
a hot fuel bed was found at seven o’clock.
Today, when I want to use this combination of
Franklin county number two nut and pea coke I
fire it in about this way: Arising at half-past six
I shake down the ashes and fire about three
.shovelfuls of coke. Leaving the ash door open,
I take time for a shave and bath — about a half
hour. Then I fire a full shovelful of bituminous
coal. At this time I open the draft slide in the
feed door. After breakfast I fire another shovel¬
ful of bituminous coal and leave the drafts as
they are for about fifteen minutes. Such a fire,
made in ordinary weather, is good until three or
four o’clock in the afternoon. A little heavier
firing would make it good until evening.
With an outside temperature ranging between
forty and sixty, this kind of a fire will keep a
house, such as described, at an even temperature
of about seventy to seventy-eight degrees, from
about half past seven in the morning until three
or four o’clock in the afternoon.
An Interesting Experiment.
Along in the middle of the summer I had a
very interesting experience with fuel. On the
night of the third of August, if I remember cor¬
rectly, there was, over the north portion of Chi¬
cago, a veritable cloudburst. All the storm water
sewers were filled to overflowing and the streets
were running full for hours. It was a common
experience of the householders to find their yards
under anywhere from three to six inches of water.
This soon soaked through the basement walls. In
addition, the sewers backed up, flooding the base¬
ments through the drain pipes. In my l)a,sement
there was from two and one-half to three feet of
water. This put out the fire in the hot water
heater and flooded the coal room so that my five
tons of coal was under water that was muddy and
dirty.
At the same time the house was damp. Since
242
THE BLACK DIAMOND
[September 25
we had a young child, a fire was considered nec¬
essary in order to dry out the place. The prob¬
lem was what kind of fuel to use.
To add to the difficulty, most of the kindling
had been in the flood. Still a few sticks of rea¬
sonably dry kindling were available.
Just a week or so before that time, F. C.
Atwill had sent me a 100-pound bag of Vulcan
coke, asking that I try it. It was setting along¬
side the furnace, but like everything else was
under water. 1 waited until the water had re¬
ceded to aliout a half inch below the fire grate
and, therefore, about four inches below the top
of this bag of coke.
Having had an interesting experience with coke
early in the year, I decided to give “Fen’s” con-
trihutiop a trial under most difficult conditions. I
piled what dry kindling was available on a
(piantity of paper on the grate and then put the
moist kindling on top. Then, with my hands, I
dug out some of this coke from the water and
threw it on top of the kindling. I fired about the
etiuivalent of three shovelfuls and, with many mis¬
givings, touched the "match to the paper. I opened
all of the drafts wide.
After about ten minutes I dug out some more
of that wet coke and piled on about three more
sliovelfuls. I went back after ten minutes more
and found that the water was boiling in the pipes.
Something over a year ago Clifford D. Caldwell
— a thin man who moves with the nervous energy
of a tiger, who has a keen, bright eye and who
talks with the dialect of the South — cpiit the
Fittsburgh-Buffalo company in Pittsburgh, and
moved to Chicago to do a bit of missionary work
for the Solvay Coke people. His principal mis¬
sion in life was to teach the people in the west
how to burn coke and, thereby, to make them like
it. His desire was that they should become per¬
manent customers of the coke ovens which were
daily turning out thousands of tons of this new
fuel.
His was not particularly an easy job. In the
first place, as the old proverb has it, it’s not an
easy task to teach an old dog a new trick. It is
not an easy thing to get people weaned away from
using one coal and to using something different.
That is an elementary difficulty which is inherent
in human nature.
There was this other : Coke had been tested
lavishly throughout the west. If the facts must
be told, the marketing method previously em¬
ployed was crude and unintelligent. The people
who manufactured coke had created a desire for
it by saying that it was as smokeless and as clean
as anthracite, burned as long, and would cost less.
Having flashed that advertisement before buyers
in every city in the west, the makers of this new
fuel had left the consumers to struggle with it in
their furnaces. The public had struggled and had
failed. Some had bought and tried it, only to
burn out the lining of their furnaces. Therefore,
they had paid more to repair the furnace than
they had saved on their fuel bills. Others had
fired it too thinly and consequently the fuel bed
had burned out quickly, leaving them with no fire
at all, when they thought they should have a good
fire for several hours to come.
In a very word, the fuel had proved a distinct
disappointment, and the producers had spent good
money for advertising only to buy ill will. There,
is recalled, in this connection, a meeting held in
Chicago where the retailers told their experiences
with this fuel. The statement was then made
that of twenty-five who tried to burn coke, only
one had ever become a permanent customer, or
who had ever come hack, voluntarily, and had
asked to have coke shipped him the second time.
That is to say, there was a jinx on coke all
through the west. Whole cities had tried it for
one season and then had abandoned in the next
season. Creat big blocks of consumers had yield¬
ed to the advertisement only to throw it out after
trial. No few retail dealers had cut it off of the
list of retail fuels, first, because it did not give
satisfaction to the cu.stomers, and, second, because
it was so light that it increased their carrying
charge. They said : “What is the use of han¬
dling this coke and making a special effort to sell
it when we are losing friends and money by
doing so?”
So the problem confronting Mr. Caldwell was
no small one. He was one man .shut up in one
office in a great big buihling in Chicago. Behind
him were ovens turning out thousands of tons of
coke a day. In front of him was a big market
with a large percentage of people prejudiced
against his product. His business was a good deal
In less than an hour the house was beginning to
dry out. This coke was the egg size, which may
account for the quick results obtained, as there
was ample room for the circulation of air through
the thick fuel bed.
Concerning Other Tests.
This is the first installment of what may prove
an interesting series of articles on what may be
done with an ordinary household furnace. There
is no intention to say that what applied to this
one furnace will prove true universally. In fact,
it must be kept in mind that I have had a given
condition of radiation, a given furnace, and have
only experimented with three kinds of coal in
five sizes. As indicated, I propose to use this fur¬
nace as a sort of experimental plant and other
articles will be written as other experiments have
been completed. At present the disposition is to
believe that there is far more flexibility in a
household furnace than a great many people be¬
lieve.
Incidentally, if any retailer wants to ask any
question I will try to answer them. If the data
is not at hand, I will make the experiments.
Also, if any retailer has made similar experi¬
ments, I should be very glad to know about them,
because that would broaden the discussion.
The Editor.
like that of a missionary who goes among pig
headed Chinese and tries to win them away from
Confucianism.
Yet he assailed the obstacle systematically and
concentrated his effort. He knew, in the fir.st
place, that one man could not hope to win the
whole territory in any one year. Therefore, he
would have to win one section at a time ; after
getting his idea to working automatically there in
one i)lace, he could go on to another. Since he
C. D. Caldwell.
was already in Chicago, he decided that the best
place to try out his plan was in Chicago itself.
Having narrowed down his zone, he narrowed it
still further. He saw that at the start he would
have to convince the retail dealer. To this end
he made a definite campaign. He first let it be
known that he was proposing to work hand in
hand with the retailer in convincing and educat¬
ing the buyer. That is, he proposed to constitute
himself a part of the retailer’s service department.
And he did it in this way :
Pie told the retailers that if they would send
in the names of those who had bought coke the
company would pay the retailer twenty-five cents
a ton for every ton of coke bought by any cus¬
tomer so named. Also, the Solvay Company
would send a skilled man to that customer to
show him how to use coke to the very best advan¬
tage. This man would show the buyer how to
make a fire; how to adjust the dampers to get a
certain amount of heat in any kind of weather;
how to bank the fire at night, and all about it.
This projjosal not only increased temporarily the
jirofit on the coke to the retailer, but it gave his
customers the idea that he had a service depart¬
ment which was looking after their interests.
At first Mr. Caldwell had on his staff just one
man with a small automobile, who traveled about
the city making demonstrations of how to use
coke. For the first few weeks this one man could
do all the work. Then the list of names began to
come in. One company alone on one day sent in
as many as 150 names. Other companies on dif¬
ferent days sent in as many as twenty-five to fifty
names. Thus there grew to be a need for not one
man, but many. In brief, before six months had
elapsed, the staff of experts had been increased
from one to fifteen. The second season is just
opening and now the company has twenty-five
demonstrators in Chicago alone and is about ready
to take up a similar campaign in other districts.
The payment of twenty-live cents a ton to the
retailers applied only during the first season. The
company wanted it to be understood that this was
not a cut in price, but it was an inducement to get
the retailers to thinking about coke and to trying
it out. Although no payment is now paid, the
dealers are appreciating the value of the service
and are sending in long lists of names almost
every day. They know now that the service of an
expert is worth far more than the amount of
money they got back from the company for turn¬
ing in the list of names.
And the result. Within six months the tonnage
of coke handled in Chicago proper was more
than doubled. The summer, which has just
passed, saw an unprecedented sale of coke to the
liouseholders. The fall started in with a rush of
orders. New customers are interested in the fuel
almost every day and new persons are learning
almost every day how to use it.
Considering the difficulties which confronted
him at the outset the success of this campaign is
truly marvelous. It only shows what can be
done when any one starts seriou.sly and intelli¬
gently to put a fuel of merit upon any market.
Indiana Production.
In 1914 the mines of Indiana yielded 16,641,132
tons of coal, having a value of $18,290,928, ac¬
cording to a statement by C. E. Lesher just
given out by the United States Geological Sur¬
vey. This shows a slight decrease from the 1913
figures of 524,539 tons, or three per cent in quan¬
tity, and $710,953 or 3.7 per cent in value. Out
of nineteen coal-producin.g counties in Indiana
six showed an increase in 1914, all the increases
being small except that in Vigo county, which
in 1914 had an output greater than in 1913 by
more than 530,000 tons. On the other hand, the
neighboring counties, Greene, Clay, Knox and
Parke counties, each showed a decrease of over
100,000 tons. The average price per ton for
the state was $1.10 as compared with $1.11 for
1913.
The production of machine-mined coal in 1914
amounted to 9,360,683 short tons, or 56.2 per cent
of the total, as compared with 9,737,425 tons
or fifty-seven per cent in 1913. There was, how¬
ever, no decrease in the proportion of the product
shot off the solid, the figures being 5,175,229
tons in 1913 against 4,968,065 tons in 1914, ap¬
proximately thirty per cent in both years. The
quantity of hand-mined coal decreased from
eleven per cent to 10.6 per cent in 1914, and the
number of mining machines in use increased from
732 in 1913 to 751 in 1914.
The Bureau of Mines reported forty-four fatal
accidents in the mines of Indiana during 1914, a
decrease of twenty-two from those reported in
1913. This brought the death rate per thousand
from 2.97 in 1913 to 1.97 for 1914.
The Winifrede Coal Company has just reop¬
ened its Belmont mine after six weeks’ shut¬
down owing to a strike. The strike was caused
by the discharge by the company of five agitators
who interfered with the working of the mine by
General Manager Frank R. Stewart. The action
of these men was so clearly in violation of the
agreement with the miners that nothing could
be done in the matter by the miners when Mr.
Stewart applied the Pennsylvania plan in settle¬
ment of the trouble. Pie announced that the
mine would be closed down until these men
moved off the Winifrede property and that two
days for one of delay in getting off would l)e
added for a reminder. The recalcitrants moved
off the property in three weeks after the strike
was inaugurated and in three weeks afterward,
Monday this week, the mines started in full
operation with a full complement of miners.
All three plants of the Oliver Iron & Steel
Company in the Connellsville region are now on
full time. The Oliver interests have been work¬
ing five days heretofore, but demand for addi¬
tional coke by the furnaces of the company made
it necessary to speed up.
Putting a New Fuel on the Commercial Map.
No. 13] _ THE BLACK DIAMOND.
The Regeneration of the Galesburg District.
Any man who has traveled the territory a lit¬
tle to the west of Chicago realizes that, up to a
short time ago, it was the old story of too many
small concerns trying to live off the coal business
in a small community. Hence there was the
resultant bitterness when one fellow started to
crowd some other fellow out.
In describing this situation, one man who, inci¬
dentally, had lived on a farm, said it reminded
him very much of ten pigs trying to feed at a
trough which was only big enough for five and
when there was only food enough for five. One
would charge the line and break through it to the
trough, only to push some other one out, of
course. It would be complacently filling its stom¬
ach when the displaced pig would charge the line
and push another one out. Thus all the pigs were
never feeding at the same time, but there was a
constant fight at the trough and a constant fight
behind the trough for a place. Naturally, he
said, the pigs were not in an amiable frame of
mind toward each other. Also, what little each
one ate, he used up in his fight to getnnore.
Perhaps the simile is a trifle forceful and does
not state accurately all phases of the coal case.
Yet, it is true that all through that district there
was intense trade rivalry, most of the money
taken in on trade went out to pay the cost of war.
As a result of hard feelings, every fellow believed
everything that was said of the other fellow.
Men in the retail coal trade in that district came
to believe that their business expressed moral
degradation in its superlative degree.
The situation was not only disagreeable, but it
was disastrous in a financial sense. The retailer
did not fix his own prices, but let the consumer
do it. And the consumer did so by merely mak¬
ing a misstatement about what the other fellow
had proposed to charge. Since each retailer was
in a mood to believe anything about his competi¬
tor, he readily believed the buyer, even though
the latter said the competitor was accepting a
price less the mine price plus the freight rate.
The buyers lied gently in order to save a few
pennies per ton on the price of their coal.
Thus the retailer gave away his service and his
profit. He extended credit where the “buyer” had
no right to credit. He proved, in the end, a very
bad credit risk for the operator whose coal he
was handling.
While this applies broadly to a big district in
the west, and while in a sense it is true generally
of the retail situation the nation over, it was par¬
ticularly true in a small district of which Gales¬
burg, Ill., was the center. Then came one little
incident and one man that has changed the whole
complexion of things. If you will read over again
what has just been said and then will imagine
the exact reverse of that situation, you will know
precisely what is the situation in and around
Galesburg today. The man who primarily is re¬
sponsible for this change is Charles V. Tapper,
sales manager of the Brereton Coal Company of
Galesburg.
After finding what this remarkable young man
has done, statement of his achievement was made,
as a hypothetical question, to a number of coal
men in and around Chicago. With one accord,
they said ;
“It is improbable and impossible. It never did
happen and it never can happen. No such thing is
possible in the coal trade. In the first place, if an
operator tried to do that sort of thing, the retail¬
ers would not stand for it. And, if the retailers
did stand for it, some other operator would come
in and kick over the whole arrangement by sow¬
ing seeds of discord. Tliere is no possibility of
such a reform in the coal trade, because human
nature there is too rampant to make any such
thing possible.”
Nevertheless it has happened and this is the
.story of it ;
Charles V. Tapper is a man about thirty years
of age — one of those fellows who is full of vim,
moves about quickly, has a great deal of physical
and moral courage and is the kind of a dreamer
who believes that a dream is worth nothing unless
it can lie made a reality. He saw the situation in
Galesburg and came to the conclusion that the
only reason it continued to exist was that no one
man understood the situation as a whole, hut
rather that each man only understood one part of
it only. Judging from that one part, he got a
misconception of the whole. lie then said to him¬
self ;
“The point in Gale.sburg is that the retail coal
men are all of one clan, but do not know it. They
have got at least a tentative organization, but they
never use it. The buyer has sensed this fact and
plays one against the other. It is the old case of
David throwing the stone in among the Philis¬
tines and of starting them to fighting each other.
The consumers sit on the side lines and charge the
retailers of price cutting and they in turn start
real price cutting. The retailers are destroying
themselves at the suggestion of the consumers and
do not know why they are doing it.”
Having come to that conclusion, Mr. Tapper
started out to get the Galesburg dealers to under¬
stand the situation. P'irst, his point of view was
that unless the retailer could be straightened out,
there never would be a good market there for his
coal ; he never could hope to get a fair mine price.
That was not disinterested, but it was fair from a
commercial point of view.
So he started to talking to the retailers about
the two ways of making money. One, as he said,
was to make a little on each ton and sell a great
number of tons. The difficulty there was that in
order to sell the great number of tons, each re¬
tailer would have to crowd some other dealer out
of the market. That was inviting a fight. The
other way was for each retailer to make the same
amount of money off a smaller tonnage by get¬
ting a larger margin per ton. The only obstacle
in the way of that program was to get each retail¬
er to consent that while he was making money
the other retailers also should make monej". In
other words, his problem was to convince the re¬
tailer not to act as a dog in the manger.
Naturally it took months to bridge this obstacle
and to get the retailers to see the possibility of
another line of action. Nevertheless he kept
preaching it and finally got all of the retailers into
such a mood that they would consent to attend a
dinner which he gave. When he got them all to¬
gether, he was privileged, as a host, to say what
he pleased. Then he told the whole story in all
of its ramifications and they all saw the point.
Among other things, Air. Tapper is a good talker.
It was not long after that until the retailers of
Galesburg saw the advantage of such meetings
and they began holding dinners at stated inter¬
vals. Each man paid his own shot and they got
acquainted and talked things over. At those ^meet¬
ings the principal topic of discussion was : “How
Paying Commissions
The following letter, received from an In¬
dianapolis, Ind., reader raises an interesting point
regarding the payment of salesmen. Of course,
the law is the same whether it be a salesman
on the road or a retail salesman who goes
among customers to get orders or a clerk be¬
hind the counter who gets a commission on what
he sells :
“We are having an argument with one of our
salesmen which may require us to change our
whole method of doing business, but before goin.g
to such length we feel like submitting the ques¬
tion to you. We employ several outside men,
who are paid by receiving a share of the profits
on their orders. There has been more or less
friction between us over whether anything was
due them on orders which were canceled, but
the matter has never reached a head until the
present time.
“One of the salesmen now demands to receiye
regular commission on all orders he sends in
which we accept, whether they are afterward
canceled or not. He states that he has been
told by a lawyer that he can collect those from
us.
“You can see that it would not be good busi¬
ness for us to pay a salesman for obtaining
orders which we do not fill, and we could not
afford to do that and would not. We are de¬
sirous of avoiding all controversy with our sales¬
men, however, and hope you can throw some
light on the matter.”
This is another complication arisin.g from the
loose and indiscriminate habit of cancelling or¬
ders which obtains more or less all over the
United States. I can tell this correspondent
how he can solve his difficulty with his sales¬
man, but he will probably not adopt it, because
he will not consider it good business to do so.
All he needs to do is to refuse to accept can¬
cellations of orders. If he will do that, and
will stand by it, all the orders his salesmen
get which are accepted will he filled and the
salesmen will, of course, get their pay.
243
4
is the buyer trying to put one over on us?” They
succeeded in developing quite a number of ingen¬
ious ways and devices by which the buyer was
throwing stones in among the Philistines.
After a while the situation at Galesburg changed
completely. The old dissensions were gone and
the retailers were so friendly with each other that
even in business hours they would call on the
telephone to check up on a statement made by a
prospective buyer of coal.
In detail, they formed an organization to col¬
lect credit information. They got behind a new
city ordinance which compelled the giving of full
weight of 2,000 pounds per ton. They aroused the
public on the question of mixture of coals and
the suhstitution of a low grade for a high grade
coal. They educated public sentiment to the point
where, if a man sold anything, he was compelled
to deliver it. These things automatically cut out
the snowbirds and made it clear to any man where
he sold coal below cost he was only inviting
bankruptcy.
From that time the development was easy and
rapid. Pretty soon in Galesburg there was an¬
other meeting. This was not attended only by the
retailers of Galesburg, but by those from all the
surrounding counties who had come over to find
out what had made the change. They had a din¬
ner one night at which thirty-three retailers were
present, representing not only all those in Gales¬
burg, but all of those in Monmouth, Abingdon,
Knoxville, and in De Long. This time there was
not only present the father of the movement —
Mr. Tapper — but they also invited in I. L. Runyan,
secretary of the Illinois-Wisconsin Association.
He also had a few words to say on the general
theory on which the Galesburg dealers were oper¬
ating.
Today, as a result, there is a zone in that part
of Illinois where innocent cooperation exists
among the retailers. There are local associations
at Monmouth, Abingdon, Knoxville and De Long,
and they are all working in harmony with the or¬
ganization at Galesburg.
This is the story of how the Galesburg district
got regeneration. Incidentally, it is the story of
how other districts can get the same results. The
only thing that is needed in the other districts is
some man with energy, courage and a few ideals
such as has Charles V. Tapper and who has the
patience to work until an ideal is realized.
on Canceled Orders.
But he will probably not do that, so let us
see what his status is under the present method.
As I have explained, all courts would proba¬
bly read into every ordinary contract of pur¬
chase today the custom allowing cancellation at
will. That is, if a seller who had previously
allowed indiscriminate cancellation suddenly re¬
fused to accept cancellation of a given order
without warning, the court would say :
“Mr. Seller, you can’t do that. All your pre¬
vious relations with your buyer allowed cancel¬
lations, and you must therefore change those
relations by notice that henceforth you will not
allow cancellation. Until you do that you can¬
not strictly hold him to his orders.”
Moreover, the courts would also hold a sales¬
man charged with notice of this custom. A sales¬
man who does business right in the midst of the
canceling custom, who sees his own customers
canceling orders time after time and getting
away with it, of course knows that any order
he gets may not be filled. My judgment is that
he could not collect commissions on canceled
orders, for his employer is entitled to expect —
unless the salesman tells him different — that he
is going along with the canceling custom like
everybody else, and that he will for himself
treat as actual orders only such as the buyer
stands by.
Therefore, where employer, salesman and
buyer have been going along under the prevail¬
ing custom, the employer could not hold his
customer to an order without first warning him,
nor could the salesman hold his employer for
commissions on canceled orders without first
warnin.g him.
Particularly is this the case with a salesman
who has never heretofore claimed commissions
on canceled orders, or who if he has claimed
them has not enforced his claim.
But if a salesman warned his employer that
hereafter he would not be a party to any can¬
celing of orders, that the orders he obtained
were obtained in good faith, that the employer
could enforce them if he would, and that if
he chose not to do so, the salesman would still
[September 25
THE BLACK DIAMOND.
expect commissions, then I believe the salesman
could collect every cent. The employer could
no longer plead custom of the trade, for the
salesman had notified him that he would no
longer be bound by custom of the trade.
The only thing for an employer to do in such
a case would be one of three: 1. Take the
same attitude with his customers and refuse
cancellations. 2. Pay commissions whether or¬
ders arc filled or not. 3. Discharge the sales¬
man.
I think I should say that if there were no
custoin of the trade to change it, a salesman’s
commissions would be due and payable the min¬
ute he had obtained an order and his employer
had accepted it. He would not even need to
wait until it was filled.
{Copyright, July, igi^, by Elton I. Buckley.)
How Retailers Should Advertise Their Coal.
A dealer in northern Illinois, who requests that
we do not publish his name, writes;
“I liave just read your criticism of George H.
Rudy & Company’s advertisement, and am exceed¬
ingly interested in this article. I would appreci¬
ate an expression of your opinion of my own
advertisement, recently used in our own local
newspaper.”
A copy of the advertisement is reproduced here¬
with. Originally it measured 4j4x4 inches.
One of the first things to consider about any
advertisement is what advertising men call ‘‘the
layout”— the type arrangement. The type arrange¬
ment in this “ad” balances, yet it is a little too
crowded — not sufficient white space around the
text matter to set it off. I would suggest that
where so much type matter is used, the adver¬
tiser use a little larger space so that the reading
matter will have a wider margin of white space.
However, the value of this layout is “fair.”
The next point to consider is what an adver¬
tising man calls “the catch line” — the line de¬
signed to catch the eye of the reader and to cause
his interest. “Guaranteed Coke” is a good one.
“Guaranteed” anything always has a tendency to
Guaranteed Coke
Every dealer tells you the coke he sells is better than
the other fellow sells. When a dealer tells yon he has the
best and only coke he is either fooling himself or trying to
fool you. The coke we sell carries the following guarantee
■which you find on every ticket:
This load is guaranteed both quality and weight. It
for any reason you are not satisfied we will gladly remove
It without cost to you and refund your money.
ATTRACTIVE SEASON CONTRACT
ON THIS BASIS
Ask to have our representative call,
BOTH PHONES 43
Advertiser’s name omitted by request.
The “Guaranteed Coke” Ad.
attract attention, because of the curiosity in the
average human to find what is guaranteed and
what the guarantee means. We might estimate
the quality of the “catch line” as “good.”
As the fundamental requirements of any adver¬
tisement are to attract, to interest, to convince
and to cause immediate action, the next point to
consider is whether or not our advertisement gets
and holds the interest of the reader.
Does this advertisement interest the reader? Is
the reading matter interesting? There is a point
—I am cranky, perhaps— I do not like. That is
the mention of the other fellow and the compari¬
son of your product with his. There is an old
saying, “Every knock is a boost.” Whether or
not that is true, advertising men and advertisers
prefer to avoid any mention of the other fellow;
also any comparison with his product or goods.
Tlie human being in comparing himself or any
of his goods usually makes the comparison with
a standard. Where a comparison is invited, the
reader has a tendency to accept the other fellow’s
product as the standard. You are advertising
yourself and your products — not the other man
nor his goods.
I belie-ye that telling of the uses of coke, and
wherein its use would prove a more satisfactory
and economical fuel for the reader to burn, would
prove just as interesting, and would certainly be
more in line with what you are trying to make
your advertising do — to increase your sales and
not to decrease those of your competitors.
But there is a point I do like, and that is the
guarantee. The reader can not get by it. It
meets him half way, and leaves the rest of the
journey for him to make. It proves to the reader
that unless this dealer’s product did come up to
all the claims made for it, he could not afford to
make such a proposition as removing the coke
without cost and refunding the consumer’s
money. It is a most convincing argument, and I
would estimate its worth as “excellent.”
“Attractive Season Contract on This Basis.
Ask to Have Our Representative Call. Both
phones 43.” What more is necessary? We have
attracted the attention of the reader, interested
him, and have convinced him of the worth of our
product, and right here, this attractive contract
basis proposition makes us investigate and want
to look into it. And, here is an easy way to do
it, “Ask to have our representative call. Both
phones 43.” It creates a desire on the part of the
reader to act, and prompts his doing so at the
mornent. I would estimate the value of these
closing, these action-causing sentences, as “excel¬
lent,” and the entire advertisement as “good.”
My general criticism would be that the adver¬
tisement was not explicit enough. It takes too
much for granted and that the reader is familiar
with the uses of coke and its qualities. Now
the reader reads a paper to inform himself, and
reads the advertisements for the same purpose.
He wants to inform himself regarding new and
more profitable methods and ways to a more eco¬
nomical buying. So the advertisement that says
something, tells something and helps the reader
to a more satisfactory supplying of his needs, is
the advertisement that produces the greatest
returns. The Ad Critic.
An Bffective Collection System.
“Failure has been laid to poor collections.”
“Inability to collect its outstanding accounts has
forced the company into bankruptcy.” These are
the stock expressions which explain most bank¬
ruptcies in the retail coal business.
It is a fact that outstanding and past due ac¬
counts have caused more failures and greater
losses in the retail coal business than any other
thing or things. It would seem that every coal
dealer should by this time have worked out a plan
to save his financial bacon. Whether he is or
not, he should be interested in any system, meth¬
od or scheme by which he could avoid and pre¬
vent such losses.
One such sy.stem has just come to notice. It is
simple, consisting of a file of envelopes indexed
in alphabetical order. The cabinet contains 100,
200 or 500 envelopes, according to the number of
outstanding accounts the dealer has upon his
books. These envelopes are filed in alphabetical
order.
When the consumer’s account is sixty or ninety
days old, the envelope is filled out and filed in the
cabinet. With the filling in of the envelope, a bill
is made out for the consumer, and a sticker is
pasted on the bill which reads ; “No doubt this
account which is past due has escaped your notice.
Kindly oblige by an early settlement.”
A metal clasp is then put at the top of the en¬
velope at a date on which the second notice is to
be sent, unless the consumer remits. The fasten¬
ing of these metal clasps to the envelope enables
the operator of the system to see at a glance
each day those accounts which are to receive an¬
other notice on that date.
Unless the consumer remits, a second bill is
sent him seven, ten or fifteen days after the filling
out of the envelope, with the following sticker
attached to his bill: “Your attention was called
to this account several days ago. We now de¬
sire to close same without further delay, and feel
sure that we can rely on a prompt remittance.”
The metal clasp is then moved forward to the de¬
sired date. With no remittance from the con¬
sumer in the meantime, a third bill is sent him
with the third sticker attached, which reads: “Sev¬
eral demands have been made for payment of this
account, and unless it receives attention before
(such a date), we will be forced to place same in
other hands, which will be embarrassing to both
VJl US..
xiu. lb uitri again movea torward.
Unless the consumer remits in the meantime,
a fourth notice is sent him insisting on immedi¬
ate payment, and advising that unless same is
made the account will be placed in a well-known
creditors’ association, and the clasp moved for¬
ward.
No remittance from said consumer, the fifth
and final notice is sent, which is a notice from
a credit association stating that the account has
been placed in their hands, and unless immediate
remittance is made to the dealer, who is a mem¬
ber of the association, this association will com¬
mence action.
If the dealers do not wish to use these forms
of notices, there are a series of twelve letters
i
i< II i> I)
u II ir 11
I. C. A.
Nome o/'Deblor. .
a » ti » » ii » » ii
ColleclioD System
Town..
. State.,
Sifttl . .
Amount Due $ . Ledger . Page . Dole of Aec'l,.
tVrole 'Debtor . . . Made Draft _
Sent for Collection to . . . Dale Sent . .
Remarl{s: . •. .
Ill Nolke sent . . 2nd _ ....
5lb notice to be sent in plain encelcpe
Envelope Which Assists Collector.
arranged m booklet form and contained in the
cabinet, which he might use with equally as good
results.
The Sayers System, which is here described, is
a persistent follow-up an old account until settle¬
ment has been made.
One of the features of this system is a blank
forrn, which is filled out by every applicant for
credit. It requires the filling in of the appli¬
cant’s name, address, liusiness, occupation, wheth¬
er or not he owns real estate, and if so, its value ;
the name of firms he has recently dealt with and
the names of references. The filling in of this
blank is supposed to have a good moral effect on
the applicant, as he is led to believe that where a
company employs such careful methods in ex¬
tending credit, certainly such a company must
employ an effective collection system, and hence
that any attempt to get out of paying for coal
will prove useless and costly.
Coal in Canada.
The preliminary report of Mr. John McLeish,
Chief of the Division of Mineral Resources and
Statistics of Canada, of the Canadian mineral
production for 1914 shows the total production
of coal as 13,594,984 tons, valued at $33,433,108.
as against 15,012,178 tons, valued at $37,3.34,940
in 1913, being a decrease of nine and four-tenths
per cent in quantity and ten and four-tenths
per cent in value. The production in Nova
Scotia was 7,338,790 tons, a decrease of 641,283
tons. The Alberta production was 3,667,816
tons, a decrease of 346,939 tons; and British
Columbia produced 2,238,339 tons, the decrease
being 476,081 tons. Saskatchewan, with a pro¬
duction of 232,541 tons, shows an increase of
19,644 tons; and New Brunswick reports a pro¬
duction of 104,055 tons, an increase of 33,744
tons. The production of the Yukon was 13,443
tons, a decrease of 6,279 tons. The exports
of coal in 1914 were 1,423,126 tons, valued at
$3,880,175, as compared with exports of 1,562,-
020 tons, valued at $3,961,351 in 1913, a decrease
of eight and eighty-nine hundredths per cent.
Imports of coal during 1914 were 14,721,057
tons, valued at $39,801,498, as compared with a
total of 18,201,953 tons, valued at $47,949,119 in
1913. The apparent consumption of coal during
the year was 26,809,778 tons, as against a con¬
sumption of 31,582,545 tons in 1913. Of the
consumption in 1914 about forty-five and four-
tenths per cent was from Canadian mines, and
fifty-four and six-tenths per cent imported. The
total output of oven coke during the year was
1,015,253 tons, made from 1,533,365 tons of coal,
of which 1,030,053 tons were mined in Canada
and 503,312 tons imported. In 1913 the total
output was 1,517,133 tons. At the end of the
year there were 797 coke ovens in operation
and 2,297 idle. The total production of pig
iron in Canadian blast furnaces in 1914 was
783,164 tons, valuad at approximately $10,002,-
856, as compared with 1,128,967 tons, valued at
$16,540,012 in 1913. The output shows a falling
off of thirty and six-tenths per cent, and is the
smallest since 1909.
No. 13]
THE BLACK DIAMOND
245
Three Railways Increase Coal Rates to Tide. Association News.
The three railroads liaving eoal piers at Hamp¬
ton Roads have given notice to shippers that
effective January 1, litlG, rates on coal intended
for bunker purposes, will take the local rate
of $1.50 per net ton, as against the rate of $1.50
per gross ton that applies on coal destined “be¬
yond the capes.” This will mean, according to
the men interested in bunkering at Hampton
Roads, an increase of twenty-eight cents per ton
on hunker coals. At the present time, bunker
coal loaded on vessels coming to Hampton Roads
for coal or other cargoes, takes the $1.40 per
long ton rate.
Coal men are wondering what the effect of the
new rate will be. Most bunker contracts, espe¬
cially as apply to tramp or cargo steamers, that
make up the principal users of bunker coals at
the Roads, are made from January 1st to Decem¬
ber 31st.
At present, Hampton Roads has a distinct ad¬
vantage over the other Atlantic coal ports in
the matter of bunkers. The Pocahontas and New
River coals are conceded to be the best for
bunker purposes, commanding in competitive
markets a differential of fifteen to twenty-five
cents per ton. Moreover, coal is loaded direct
from piers into the bunkers of steamers at the
Hampton Roads piers, whereas in Baltimore,
Philadelphia and New York, in most instances,
they have to be lightered alongside steamers
that may be many miles away from the piers
where the coal is received. This has meant that
steamers that would load cargoes, say in New
York or Philadelphia, and if going to South
America, or to the Pacific, would take only
enough bunkers at their cargo loading ports,
to take them to Hampton Roads, where they
would lay in enough bunkers to complete their
voyage. An advance of twenty-eight cents a ton
will doubtless make many of them take all their
bunker coal at the farther east ports where they
take cargoes, and coal men interested in bunker¬
ing in New York, Philadelphia and Baltimore,
are expected to increase their business at the
expense of the Hampton Roads bunker interest.
This, they argue, will be the result unless the
Baltimore & Ohio, Pennsylvania and Western
Maryland roads increase their rates on bunker
coals to Baltimore, Philadelphia and New York.
The Black Diamond asked some of the coal
traffic officials of the roads named if such ad¬
vances were being considered. H. M. Matthews,
coal traffic manager of the Baltimore & Ohio, the
first to reply, wired ;
“Yours date concerning bunker coal. No change
under consideration present time.”
The bunker trade at Hampton Roads ports is
now running around 1,500,000 tons per year, and
is rapidly increasing. In 1913, it amounted to
1,194,163 tons, of which 221,933 tons were sup¬
plied to coastwise vessels and 972,230 tons to
vessels engaged in foreign trade. '
A copy of the notice being sent out by the rail¬
roads, giving their reasons for the advance, is
as follows :
"Please be informed that, effective January 1,
1916, as regards coal other than that for the
United States Government, and effective July 1,
1916, as regards coal for the United States Gov¬
ernment, we will make the following changes,
and for reasons hereinafter shown, in rates and
charges affecting coal delivered at Norfolk:
“The rate of $1.40 per ton of 3,240 pounds will
apply only on coal that is trans-shipped to vessels
for delivery to points outside the capes of Vir¬
ginia or for delivery to points on the Albemarle,
Pamlico and Currituck Sounds and tributaries
thereto.
“On all other coal the rate will be $1.50 per
ton of 2,000 pounds.
“This change is made to conform with the rul¬
ing of the Interstate Commerce Commission that
“coal placed on a vessel for use as fuel on
that vessel cannot be regarded as a coastwise
or export movement of that commodity.” (Basin
Supply Co. vs. T. & F. S. Ry. Co., 33, I. C. C.,
157.)
The Commission in this case says further that
“an export or coastwise movement of a com¬
modity from a port implies delivery at some other
port. The ownership of the coal passed to the
ship’s owners when it was loaded into the bunkers
and it thereupon ceased to be an article of com¬
merce, as would a piece of machinery installed
on the vessel as part of its equipment.”
The Commission points out in this case the
fact that
“The Supreme Court of the United States has
held that lubricating oil placed on board for use
and consumed in use on a vessel bound for a
foreign port is not exported. (Swan & Finch
Co. vs. N. S. 190, U. S., 143) the court said, at
page 114: Whatever primary meaning may be in¬
dicated by its derivation, the word ‘export’ as
used in the constitution and laws of the United
States, generally means the transportation of
goods from this to a foreign country.”
More recently the Commission has reported a
similar finding ( Coal and Coke rates in the
Southeast, 35 I. C. C., 187). Here, in dealing
with the rates of the rail lines on coal to New
Orleans, a situation where the rail lines wanted
to establish a less rate on bunker coal than on
coal used on land, the Commission says :
"It may be that the rail lines cannot haul any
considerable quantity of bunker coal to New
Orleans at a rate higher than $1.35 for they now
haul at that rate less than one-fourth of the
bunker coal. It may be that they can retain the
land business at a rate higher than $1.25 for at
that rate they have taken practically all of the
land business away from the water lines. They
must, however, choose that rate on coal to New
Orleans which they deem to be to their best
interests. They must not make rates dependent
upon the use to which the commodity is to be
put. (In the matter of Restricted Rates, 2'0 1. C.
C, 426 ; Interstate Commerce Commission vs.
B. & O. R. R., 225 U. S., 326.) There is no more
justification for a lower rate on coal used for
fuel in the boats than there would be on coal
for use on the railroads. The rate to New Or¬
leans on coal moving beyond in transportation
may, of course, be less than that on coal having
destination at New Orleans. But having named a
rate to New Orleans the carrier may not con¬
cern itself as to the use that is made of the
coal.”
“Concurrently with this change in rate on
bunker coal the port charges of $30 for foreign
vessels and $11 for coastwise vessels will be
cancelled. (Note: This charge has always
Iieen borne by supplier of coal.)
"The charges for docking and undocking ves¬
sels taking coal for the United States Govern¬
ment will be as follows:
“For docking: Same charge for undocking.
“Cargo or cargo and bunker :
Vessels under steam . 1 cent per ton net register
Vessels without steam . cents per ton net registei
“The charges for docking and undocking bunker
vessels are, the arbitrary charge of $20 for ves¬
sels with steam and the usual additional charge
for vessels without steam. These have been
the charges at Hampton Roads piers for many
years and were adopted at a time when the
average vessel was materially smaller than at
present.. Handling the large vessels of the pres¬
ent day for these charges works a hardship
upon the company performing the docking serv¬
ices and is a discrimination against the smaller
vessels. To meet this situation the charges for
docking and undocking vessels taking only bunker
coal will be based upon the vessel’s net register
as follows:
Vessels under steam . 1 cent per ton net register
Vessels without steam . 1 ^ cents per ton net register
“These charges cover the handling both in and
out.
“It is our understanding that vessel fuel con¬
tracts (other than United States Government)
are made from January first of each year and
that all United States Government coal con¬
tracts are made from July first of each year.
This explains the two dates of January 1, 1916,
and July 1, 1916.”
R. H. Large, general coal freight agent of the
Pennsylvania Railroad, advises The Black Dia¬
mond that the railroad does not contemplate a
change in rates on bituminous coal to Baltimore
or Philadelphia, either for local delivery or for
transshipment. This is in reply to a query
whether they would make changes in rates on
bunker coal in keeping with advances made by
roads running into Hampton Roads.
Walter W. Greene, one of New York’s best
known anthracite salesmen, died on Sunday last.
His first connection was with the firm of Leonard-
Youngman. For many years he was with Ward
& 01yi)hant, who handled the Delaware and Hud¬
son Company’s coal, and when they gave up this
agency some five years ago he joined the forces
of Pattison and Bowns. His ill health for the
past two years had incapacitated him for active
work.
Secretary B. h'. Nigh of the Michigan-Ohio-
Indiana Coal Association reports that matters are
moving along nicely, and that prospects are very
encouraging. He further states that the Associa¬
tion has secured thirty-seven new members in the
past sixty days, and has collected over $800 in
railroad claims for its members. Mr. Nigh’s opin¬
ion is that conditions are much better than at this
time a year ago.
A September twenty-second report from
I. L. Runyan, secretary of the Illinois &
Wisconsin Retail Coal Dealers’ Association,
states :
“While a more hopeful feeling prevails, there
has been no great activity among the retail¬
ers. The wet weather has been a handicap
in making deliveries to the consumer, and
ihis, of course, has withheld orders from re¬
tailers to replenish their stock. Complaints
of slow collections also continue.
“Our association is making progress, and
continues to have gratifying success in the
collection of claims for its members. Not¬
withstanding 'the adverse conditions which
have prevailed in the trade for so long, the
belief in association endeavor is apparently
gaining ground as indicated by the following
list of firms who have enlisted in the cause
for trade betterment as new members of this
association since June first:
Kiplinger & Son, Freeport, Ill.
Empire Coal Company, Superior, Wis.
T. J. McConnell, Superior, Wis.
F. R. Carter, Peoria, Ill.
Rogers-Ruger Lumber Company, Superior,
Wis.
C. E. King & Son, White Hall, Ill.
Diffenbaugh Coal & Ice Company, Mon¬
mouth, Ill.
Johnson Fuel Company, Galesburg, Ill.
W. H. Russell, Gillespie, Ill.
Onie-Caudry, Gillespie, Ill.
Fred Scherer, Ottawa, Ill.
Ottawa Lumber & Coal Company, Ottawa,
Ill.
Johnston Fuel & Warehouse Company,
Baraboo, Wis.
Ballentine Coal & Ice Company, Toulon, Ill.
J. M. Dempsey, Galesburg, Ill.
The Lord Fuel Company, Monmouth, Ill.
B. A. Allaman, Monmouth, Ill.
Zack Twyman, Monmouth, Ill.
W. E. West, Yates City, Ill.
W. E. Emery, Galva. Ill.
W. J. Daiiibold, Bloomington, Ill.
Siems Brothers, Dallas City, Ill.
Rosenstiel & Co., Freeport, Ill.
Lightner Coal & Supply Company, Mon¬
mouth, Ill.
O. A. Winter & Son, Superior, Wis.
C. U. Bower, Covel, Ill.
Monmouth Lumber Company, Monmouth,
Ill.
M. M. Clark, Havana, Ill.
William Ringle & Co., Cambridge, Ill.
W. E. Lyon & Co., Cartha.ge, Ill.
H. E. Zeman, Wyeville, Wis.
Matteson Lumber & Coal Company, Mat-
teson. Ill.
William Donley, Superior, Wis.
D. Hemstock, Sparta, Wis.
Brink Fuel Company, Prairie Du Chien,
Wis.”
Announcement has been 'made that the T. L.
Smith Company of Milwaukee has purchased the
exclusive manufacturing and selling rights of the
Albrecht excavator and loader and are in posi¬
tion to make prompt shipments of these machines.
The Albrecht excavator and loader is an exca¬
vating and loading device half-way between a
hand shovel and a steam shovel and will do the
work of both. A 12 H. P. motor provides ample
power to load twenty cubic yards of coal per hour
and will handle the coal one hundred feet away
from the machine at the rate of about one trip
per minute. Two men are required to operate the
device, one man required to handle the scraper
and the other to operate the machine. This exca¬
vator and loader can be used for excavating for
big foundations, basements and drainage ditches
for back filling and loading coal, sand, gravel and
similar materials.
“Service” is the title of an attractive and neat
little booklet recently issued by the Cairo City
Coal Company and dedicated to its many cus¬
tomers. This gives a history of the company and
its purpose, and also contains a few pages of
humor.
246
THE BLACK DIAMOND
[September 25
The Reading’s First Aid Field Day.
PoTTSviLLE, September 22. — (Slyecial Corre¬
spondence.) — The eleventli amnial “First Aid”
field day of the Philadelphia & Reading Coal &
Iron Company was held at Lakeside Park, be¬
tween Tamaqua and iMahony City on Saturday
afternoon last. Over 1,400 persons participated
in the outing. Every turn on the program — ■
and it was long and intricate — was carried out
with precision and with the excellent dispatch
that could be likened onlj’ to the performance of
a circus where
every pair of hands
knows just what
to do and when
to do it.
The men who
have taken up this
first aid work ran
well into the hun¬
dreds so far as
those who actually
participated were
concerned. Clumsy
fingered miners
they were — prob¬
ably it would be
more to the truth
to say “miners
with clumsy look¬
ing hands” — and
they wrapped
thousands of yards
of gauze bandages
with a dexterity
equalled only by
the ambulance at¬
tendants and corps
under actual fire abroad.
Every man was drilled to a nicety. There was
no fumbling of the bandage rolls, no stage fright
on the surface though these men were from the
underground; every twist of the cotton in their
hands was exactitude in itself. The declaration
that is so often seen that the first aid bandage
put on by the first aid workers are so perfect
that hospital doctors find no necessity to remove
them before the occasion requires, was more than
proved.
Now it may be, and it has been told the writer,
that first aid field days have become so common
that there is little or no "news” in them. News
is a peculiar thing. Far be it from taking up
space to argue the fundamentals. Yet, though
this is extraneous, a highly important question
is to be injected into the “safety first” problem
of the mining industry in this state with the
coming of the new year. Just what effect the
question will have is a mighty serious problem
and therefore is "news.”
“How is the workmen’s compensation law go¬
ing to affect the excellent results that have been
obtained through interesting the miners in the
first aid work?”
There you have it.
That question was asked, not once but a half
dozen times, of men who are prominent in the
technical and operative end of the industry. Not
one would venture an opinion for personal quota¬
tion. The general answer was that time had
worked out questions of that kind before and
new phases to the industry created new condi¬
tions that were always met satisfactorily.
One head of the operating department of an¬
thracite mines went a bit farther :
"I can’t see where the operation of the work¬
man’s compensation law will in any wise affect
the conduct of our first aid work. It is true
that this end of our service is costly and that
we spend a great deal of time and energy in
preparing for emergencies. Our first thought is
always toward our men. If we had a valuable
piece of machinery that was liable to be seriously
injured because there was no way to fix it when
it was in some wise slightly damaged, we would
be held to be short sighted and poor in business
judgment. How more important still is our effort
to keep our men in shape and take care of them
when the hazards of their occupation overtake
them?
“I can honestly say that no matter what oner¬
ous requirements are placed upon us by the work¬
man’s compensation law, our first aid will be
kept up to the status that has been maintained
in the past.”
Another expression of opinion was this :
“From a purely humanitarian viewpoint, the
first aid work in the mines must proceed ; it
never can recede. The way that I look upon
the compensation law is that it is collective, for
the good, the bad and the indifferent. With
first aid work, it is different. Individualism enters
strongly and largely into the scheme of assistance.
It is for the individual and by the individual.
The higher that the miners raise their first aid
work, the better it is as a protection for each
and every man. Too many angles of uplift
are connected with first aid work to have it
stopped in any way.”
And if any reader doubts that considerable
amount of native ability and knowledge of anat¬
omy is not required and must be studied to be¬
come an adept in first aid work let him glance
over this list of demonstrations that were re¬
quired at the Reading field day :
1. Rescue from electrical contact. Resuscitate,
demonstrate Sylvester and Shafer methods (Time
allowance, six minutes).
2. Dress burns of head, face, chest, arm and
hand. Two gauze and ten two and one-half
inch bandages and ten squares of gauze (time
allowance, fifteen minutes).
3. Apply spiral reverse bandage to foot, leg,
thigh and spice hip. Ten two and one-half inch
bandages (time allowance, twenty minutes).
4. Dress fracture of ribs, collar bone and arm.
one three-inch and four two and one-half-inch
bandages (time allowance, six minutes).
5. Dress fracture of right lower jaw and lacera¬
tion of left ear. Two two-inch gauze bandages
(time allowance, six minutes).
G. Dress laceration of buttocks and fracture of
spine. Nine four-inch bandages and splints and
blankets (time allowance, fifteen minutes).
7. Dress dislocation of knee and compound
fracture of leg, upper third. Six two and one-
half-inch bandages, four gauze squares and tour¬
niquet splints (time allowance, ten minutes).
8. Dress fracture of skull and injury to eye.
Two, two and one-half-inch gauze bandages, two
gauze squares (time allowance, six minutes).
9. Dress crush of foot and laceration of knee.
Three two and one-half-inch bandages, two gauze
squares, splints (time allowance, ten minutes).
10. Patient found in his house unconscious
from inhalation of illuminating gas, demonstrate
the use of pulmotor, oxygen tank and inhalator
(time allowance, ten minutes).
Now the first aid corps does not pick out which
particular demonstration in which it is proficient.
It may be alloted any one of the ten. Conse¬
quently the team members must be “up” on all of
the work.
The judges, Drs. J. B. Rogers, T. C. Fegley
and G. F. Bretz, made close examination of all
the work and it was as critical as though they
were professors examining medical students.
When the various corps had been graded ac¬
cording to the work done, there came the final
demonstration in litter work that for military
precision and curtailment of lost effort was a
marvel. In this part of the work, an ambulance
of the company, with mule motive power that
tickled the eye of any lover of good mule-flesh,
gave a realistic touch to the performance.
The corps from Brookside mine were awarded
the blue ribbon and pennant for their excellent
work. Pine Knot was second and Wadesville,
third, and the other mine corps that were in the
“ton ten” were North Franklin, Suffolk Inside,
Alaska, West Shenandoah, Alahony City Inside,
Draper Outside and Bast City.
Dr. George Halberstadt, who is affectionately
known as the “Daddy of the First Aid Work”
in the territory covered by the Reading mines.
Robert J. Montgomery, Sales Agent of the
Reading and Governor Curtis of Maine
was master of ceremonies and it was through
his competent handling that there was not a
hitch in the whole of the program.
E. T. Stotesbery, president of the Reading
Company, graced the occasion and accompany¬
ing him was Mrs. Stotesbery. When the award
was made to the Brookside Corps, she pinned
the ribbons on the “boys.”
President Richards of the Philadelphia & Read¬
ing Coal & Iron Company, then addressed those
present and said that he was delighted with the
excellent showing that had been made by the
various corps and the interest that had been
awakened. He then introduced Governor Curtis
of Maine, who. President Richards said “had
won his way into the governor’s chair of his
state through dispensing the sunshine and warmth
that went along with Reading coal.”
As to the social ends of the field day, there
were many. It included a dinner for the whole
fourteen hundred participants under the tree in
the grove of the park. Music that seemed with¬
out end and provided by three bands. And if
some big band is looking for soloist talent, here
is a sly tip. Capture the husky fellow who can
do wonders with the trombone on the Elmore
band. He is a wonder. Boat riding for those
who desired it, in fact all appointments with an
eye toward making it a “day of days.”
i
E. T. Stotesbery.
The Judges Said that This Bandage Was Perfect.
Expert Ambulance Work of the Miners’ Corps.
247
No 13] _ THE BLACK DIAMOND.
' Government Regulation and Modern Business.*
An Authoritative Word.
Mr. Butler is a member of the
Federal Trade Commission Ad¬
visory Committee of the Chamber
of Commerce of the United States.
What he has to say of the new atti¬
tude of the Government is not,
therefore, speculation, nor a long¬
distance view. He knows. That
makes this document of immense
value.
It is the fashion to decry government regu¬
lation. It is repeated ad nauseam that honest
industry has found little or nothing helpful in
legislative enactments and is in a state of col¬
lapse under the strain of regulatory statutes.
The act to regulate commerce, the Elkins law,
the Pure Food and Drug Act, the Clayton and
Federal Trade Commission laws, are cited as
specific instances of legislative oppression
of business. It is asserted that these laws
were enacted upon the assumption that busi¬
ness is dishonest and that they were, there¬
fore, intended to be and have resulted in being
destructive and not constructive in their effect
upon business.
However little truth there may be in these
charges and however weak may be the logic
of the argument which supports them, they
have been so frequently and so vehemently
stated that they find unwitting endorsement
in the minds of many people. The Sherman
law, too, is condemned as a regulatory stat¬
ute. Why should the sins of the Sherman law
be invoked in condemning regulation. The
Sherman law does not provide for regulation.
It is declarator}' — not regulatory. Had it con¬
tained regulatory provisions we should have
long since witnessed the solution of many
problems of regulation that are still unsolved.
The real relation of the Sherman law to regu¬
lation and the possibility of their co-ordination
without further legislative enactment will, I
hope, be made clear as we proceed.
Regulation is Constructive.
But is it true that the strictly regulatory
statutes have been destructive either in intent
or results? The earliest law of which com¬
plaint is made is the act to regulate commerce,
passed in 1887. Amendments to the act have
eliminated entirely the strongly entrenched
system of direct rebating. If this one item
does not make the act a piece of constructive
regulation, I shall have to be convinced of it
by the word of some one other than the man
who no longer receives the rebates.
Morally, as well as legally, the act has been
intensively and broadly constructive. If there
lie, as it seems to many there is, occasion to
complain that the act is destructive in that by
reason of regulation thereunder some carriers
are not receiving the full measure of just and
reasonable rates to which they feel themselves
entitled, such condition only reflects the pres¬
ent status of evolutionary process which must
be experienced during the period of readjust¬
ment of the physical and financial affairs of
such of the carriers as have been looted, robbed
and plundered because, if you please, of the
very lack of regulatory legislation making such
practices possible. The railroads whose man¬
agement has been capable and honest are bene¬
fiting rather tlian suffering by reason of regu¬
lation.
Other Constructive Acts.
What of the Pure Food and Drug act of
1906? It has made the pretenders, the falsi¬
fiers, the dishonest venders of dishonest goods
either quit business entirely or tell the public
the truth about the articles they offer for sale.
What of our National banks? They always
have been subject to federal regulation to the
minutest detail.
Isn’t it, after all, more or less a question of
viewpoint? Does not our like or dislike for a
thing depend a great deal upon whether or not
we are accustomed to it? Can you imagine
any line of business that is conducted more
, parts of an address before the American
t-ongress at .San Francisco, September 2],
I An attorney of Chicago.
By Rush C. Butler. f
The Principles of Regulation and the Pur¬
poses of New Laws Are Outlined and
Discussed — The New Attitude of Gov¬
ernment.
honestly or legitimately or that results in
giving better service to its customers or in
paying better dividends to its owners than
the business of the banks regulated by the
federal government?
Consideration of other regulatory statutes
would further show that their intent was help¬
fulness — destructive, if you please, of evil prac¬
tices or evil results, but broadly, humanely
constructive. The Safety Appliance act. no
doubt, placed much death-dealing railroad
equipment on the junk pile. If this is destruct¬
ive, let the detractors of regulation make the
most of it.
Regulation is constructive. Its fate is not
to be determined by the voice or votes of
those from whom it has taken or to whom it
has denied undue privilege. Regulatory stat¬
utes no more assume business essentially dis¬
honest than statutes making stealing a crime
Rush C. Butler.
assume all men to be thieves. Because the
Rock Island was purchased with criminal in¬
tent and some years later thrust into a scan-
<lalous receivership is no reason why the Bur¬
lington, the North Western or the Santa Fe
should be considered outlaws. Argument
based upon such assumption is the first re¬
sort of the business man with dishonest mo¬
tives.
Commissions Composed of Experts.
If those of you here assembled were certain
that in the progress of governmental regula¬
tion it would sooner or later be brought about
that the mining industry would be regulated
by a board of responsible business men, the
majority of whose members were fairly rep¬
resentative of the mining industry, there can
be little doubt that you would pledge your
support to any just and proper means to the
accomplishment of that end. 1 have faith that
such an outcome is reasonably to be antici¬
pated. .Such is clearly the tendency of the
times. I believe that ultimately regulation
of all kinds will be placed in the hands of
those familiar with and friendly to the indus¬
try regulated. The personnel of the present
Federal Trade Commission gives such a
promise.
I believe that the idea of regulation now
entertained by the comparatively few, namely,
that it must be expert, efficient, helpful and
conducted along sane, business lines, will be¬
come the idea, and the ideal of all our people.
Such a type of regulation does not mean pa¬
ternalism. It means that each line of industry
and each person engaged in it will have the
widest latitude for individual action. Such
form of regulation does not mean inquisition.
It does not mean annoyance by official inves¬
tigators. Espionage is not a part of the sys¬
tem. The National banks have never had occa¬
sion to complain of the fact that federal ex¬
aminers had freest access to their books. In¬
dustrial corporations under the kind of regu¬
lation they can assist in bringing about will
have as little fear of examination as do the
National banks.
Attitude of Business.
That all regulation is justified no one will
claim. That it can be improved none will
deny. But it is here to stay. Commissions
are to become more largely concerned with
business. The extent to which they may be¬
come helpful depends in large measure upon
the spirit manifested towards them by busi¬
ness. It was not long after the Federal Trade
Commission law and the Clayton law became
effective that Mr. Wheeler, former president
of the Chamber of Commerce of the United
States, urged in his own forceful and convinc¬
ing manner that the business men of the
United States lend their hearty support to
the efforts of the Federal Trade Commission
to make the new laws helpful to business.
Mr. Wheeler said:
“To make my point clear, — I want to sup¬
pose that immediately after the appointment
of the Interstate Commerce Commission in
1887 the railroads, instead of contending
against the proposed regulation, had recog¬
nized the right of the government to inter¬
vene, and had, through a well-intentioned and
broad-minded committee, given co-operation
to the Interstate Commerce Commission from
the beginning of its deliberations. Such co¬
operation would, I contend, have smoothed
out many of the rough places, have saved the
commission from many errors, the railroads
from infinite loss and the nation from a sorry
exhibition of dishonest flotation and inefficient
operation.”
Applying this illustration to the relationship
then about to be established between indus¬
trial business and the Federal Trade Commis¬
sion, Mr. Wheeler stated it seemed to him
particularly necessary that business should or¬
ganize to co-operate with the commission
rather than assume the attitude of being crit¬
ically indifferent or positively obstructive. It
was due largely to Mr. Wheeler’s initiative
and efforts that the Federal Trade Committee
of the Chamber of Commerce of the United
States was formed.
Business may best co-operate with the gov¬
ernment by accepting the legislation now on
the statute books as reflecting the best opin¬
ion of the time and by adjusting itself to the
new order of things. The laws are not perfect
and perhaps never will be, but business men
may now have a larger voice than ever before
in bringing about amendments to the laws
along lines shown by their experience to be
necessary. Business men are today co-operat¬
ing with each other more intimately than ever
before. There are literally thousands of or¬
ganizations of business men throughout the
country. Their purposes are lawful and laud¬
able, and their tendency is all toward better¬
ing not only industrial hut all human condi¬
tions. Their contact with regulating bodies
brings to legislative and executive officials ap¬
preciation of the fallacies and weaknesses of
existing laws and points out the proper basis
for amendatory enactments.
A recommendation made by a federal com¬
mission to Congress for the amendment of a
regulatory statute carries with it great weiglit.
If a commission sympathetically reflects to the
legislative body the necessity for amenda¬
tory legislation, how much more easily will
it be obtained. Not only this, but a commis¬
sion may often by its own conduct so exert
its powers in a proper manner as really to
afford relief not provided by direct statutory
enactment. The importance of harmonious
co-operation between regulator and regulated
is, therefore, all the more apparent.
Power of the Federal Trade Commission.
Specifically, as to the ability of the Federal
Trade Commission to help business, it is first
to be noted with gratification that the attitude
of the commission is entirely favorable and
friendly.
Some doubt has been expressed whether the
powers of the commission are broad enough
248
THE BLACK DIAMOND
[September 25
really to enable it to i)e helpful. Fersoiially,
1 do not share in that doubt.
The connnission is authorized to exercise
functions of two different kinds. The first
may be called judicial, in the exercise of
which it files complaints, holds hearings and
enters orders. In the exercise of its judicial
functions the commission is given the oppor¬
tunity of passing upon complaints concerning
every conceivable form of alleged unlawful
business practices. Each case considered by
the commission will naturally be decided by
it, an order will be entered either dismissing
the complaint or granting relief, and a full
and complete opinion will be prepared and,
published hy the commission, setting forth its
reasons for its conclusions.
It will not be long, therefore, until the ideas
of the commission with reference to what
facts do and what facts do not constitute
violations of the law will be known to the
public.
The findings of facts are declared by the
law to be binding upon the courts. As with
the Interstate Commerce Commission, that or¬
der of the Federal Trade Commission will be
rare, indeed, which the courts will modify or
annul. As the commission is composed of
business men, business men will pass upon
business practices. Owing to the conclusive¬
ness of its findings of fact, the commission has
been quite properly referred to as the supreme
court of business.
The other function of the commission may
be called inquisitorial. The use of the word in
this connection may not be altogether happy,
for neither the Clayton law nor the Federal
Trade Commission law is intended to set up
the trade commission as an inquisitorial body
whose duty it is to conduct an inquisition or
to ferret out crime. Rather, the attitude as¬
sumed by the commission in making investiga¬
tions may more properly be regarded as sim¬
ilar to that of the Treasury Department in mak¬
ing examinations of National banks. The com¬
mission’s powers of investigation apply to cor¬
porations only. The commission has no
power to investigate the business of indi¬
viduals or partnerships.
Section 6, paragraph (e) of the trade com¬
mission law provides that the commission
may investigate and make recommendations
for the readjustment of the business of any cor¬
poration alleged to be violating the anti-trust
acts in order that the corporation may there¬
after maintain its organization, management
and conduct of business in accordance with
law. This provision is for the specific purpose
of permitting any corporation violating the
law to readjust its business without a decree
of court, even before the filing of a suit. It
enables the commission to establish definite
guides for the future conduct of the particular
l)usiness.
Classification of Business.
Paragraph (g) authorizes the commission to
classify corporations. This permits the com¬
mission to require reports from only such cor¬
porations as it may deem advisable and thereby
relieve a large number of corporations with
which it may well know in advance it will
have no concern, from the expense and annoy¬
ance of making unnecessary reports.
This power of classification is unlimited,
thereby permitting the commission to make as
many divisions and subdivisions in classifying,
even within a single industry, as it may feel
proper or necessary to make in order effect¬
ively to accomplish desired ends.
Paragraph (h) provides that the commission
shall investigate trade conditions in and with
foreign countries and report to Congress
thereon with its recommendations. This pro¬
vision is for the evident purpose of promoting
our foreign trade.
It is especially to be noted that violations of
the Federal Trade Commission law and the
Clayton law are not made criminal offenses,
clearly indicating that Congress considered
criminal provisions undesirable and unneces¬
sary.
Uniform Cost Accounting.
In addition to the judical and inquisitorial
functions which may be exercised by the com¬
mission, it naturally, as an administrative
body, has effected a business organization for
the purpose of enabling it to perform its duties.
To illustrate: Very soon after the commission
organized it caused to be given wide publicity
a statement prepared by Vice-Chairman Hur¬
ley concerning uniform cost accounting sys¬
tems. The commission is convinced that much
unfair competition is due to ignorance of the
cost ol production. The commission consid¬
ered that it could be constructively helpful to
business by standing sponsor for the idea of
uniform cost accounting systems.
The question is often asked, “Is there any
lawful basis upon which competitors may co¬
operate in the actual carrying on of their
business?” .Assuredly, yes. While the legal
limitations on such co-operation constitute one
of the greatest menaces to business, there are
several plans of co-operation in effect, some
of which have received the tacit, if not the
expressed, approval of the government. There
is the open competition plan, the closed trans¬
action plan and the common selling agency
plan. Still other plans are believed to be legal
when applied to industries substantially all of
whose members, due to stress of conditions
either temporary or permanent, are selling at
less than cost of production.
Any industry desiring the assistance of the
commission will probably have to devise its
own plan, whether it be for co-operation of
competing industries, or whether it be with ref¬
erence to the inner workings of an individual
industry. It is not probable that the commis¬
sion will assist in the lormation of a plan, but
if the workings of a specific plan are presented
to the commission, there is reason to believe
that they will be given careful and expert in¬
vestigation and that in due course the com¬
mission will make its report thereon, either
approving or disapproving part or all thereof.
The Commission and the Sherman Law.
While Congress has declared specifically
that the Federal Trade Commission law should
not be construed to alter, modify or repeal the
Sherman law, it is apparent that if the views
herein expressed properly interpret the com¬
mission’s powers, the drastic provisions of the
Sherman law, while standing unaltered and un¬
amended on the statute books, will need to
be invoked only for the punishment of flagrant
violations. When guides for business have
been well established by the commission, the
man who violates the Sherman law will do so
at his own peril and, if prosecuted criminally
therefor, will receive little sympathy from his
fellow business men.
In the Clayton law. Congress expressed its
emphatic disapproval of four specific things,
namely:
First. Price discriminatioi^ between two
persons buying under exactly similar circum¬
stances and conditions.
Second. So-called tying contracts requiring
the purchaser to agree to handle no goods of a
competitor of the seller.
Third. The ownership of stock by one cor¬
poration in another whereby competition is
lessened.
Fourth. Interlocking directors under certain
conditions.
These things are flatly declared unlawful
and the Federal Trade Commission is author¬
ized and directed to file complaint against vio¬
lators of these provisions and require discon¬
tinuance of the practices. The things thus con¬
demned might have been included within the
unfair methods of competition which were de¬
clared unlawful in the trade commission act.
but evidently Congress deemed each of the
things injurious to the public and did not wish
to leave it open to the commission to find that
any one of the four acts specifically condemned
was proper or lawful or to be in any way ex¬
cused and, therefore, placed its stamp of spe¬
cial disapproval upon each and all of them.
Labor Exemption Clause.
Much might be said with reference to the
labor exemption clause of the Clayton law.
Whether the effect of the clause will be help¬
ful or harmful to labor remains to be seen.
Likewise, whether it will be helpful or harmful
to business is uncertain. To whatever extent
it proves to be unduly helpful to labor, it will
to that same extent necessarily be unduly
harmful to industry. If it proves unduly help¬
ful to labor, it is fair to assume either that it
will be repealed or that it will be used as an
entering wedge to bring about the enactment
of a similar provision definitely and specifically
enabling industry to co-operate along similar
lines of mutual helpfulness.
Unfair Methods of Competition.
The Federal Trade Commission law lays
down the hroad rule that unfair methods of
competition in commerce are unlawful and
gives the commission the power to ascertain in
specific instances whether or not any method
complained of is unfair. If the commission de¬
termines that a method is unfair, it is permitted
lo file a complaint against the offending party
(inly in the event it further appears that the
iiling of a (;omplaint would be in the interest
of the public. This is an exceedingly liberal
provision of the law.
It expressly indicates congressional approval
of the idea that petty fights among compet¬
itors, even though they may involve the em¬
ployment of unfair methods of competition,
are n(Dt of sufficient importance to invoke the
attention of the government, unless interests
other than those of the immediate parties to
the controversy are involved.
The Supreme Court of the United States by/
judicial interpretation has placed substantially
the same limitation upon the application of the
Sherman law, namely, that it cannot be in¬
voked for the protection of the interests of
an individual, but only on behalf of the public.
In the case most recently decided by the Su¬
preme Court involving the Sherman law, viz..
United States vs. Delaware, Lackawanna &
Western Railroad, 238 U. S., 516, decideci June
21, 1915, the Supreme Court says that the
anti-trust act “is not concerned with the in¬
terest of the parties but with the interest of
the public.” The Sherman law is general in
its terms and is not limited by express lan¬
guage to such restraints of trade or monopo¬
lies as are harmful to the public, but, as stated,
the Supreme Court of the United States by ju¬
dicial interpretation has so limited it, and, no
doubt, properly.
A Governing Principle.
The great truth that the welfare of the in¬
dividual is the welfare of the nation is coming
to be more and more recognized every day.
The financial misfortune of a particular indus¬
try is becoming more and more a matter of
public concern. Where an entire industry suf¬
fers while the remainder of the business world
enjoys even moderate prosperity, there is in¬
dication that something is wrong with our
laws or with our methods of enforcing them.
If the mining industry languishes while the
manufacturing industries prosper, there is evi-i
dence of weakness in the machinery of govern¬
ment.
Broad, helpful, sympathetic co-operation of
business men with each other and with regu¬
lating bodies will make the problems of self-
government less difficult of solution and insure,
a greater measure of continuous business pros¬
perity.
Honolulu Coaling Plant.
A new coaling plant for Honolulu, to be ten
times the size of the present one, will be erected
by the Inter-Island Steam Navigation Company
on the Kalihi side of the harbor. As announced
in The Black Diamond some weeks ago, the
Inter-Island Company had just closed a contract
for the construction of the plant with the C. W.
Hunt Company of New York City. Construc¬
tion will proceed rapidly. By the time the dredg¬
ing has been finished the plant material will have
arrived and the towers may be erected simultan¬
eously with the dock. It is planned to have
the plant completed and in operation by July 1st
of next year.
The new station will have 165,000 tons storage ca¬
pacity (the capacity of the present plant being 25,-
000 tons) and will consist of two unloading towers,
each with a capacity of 200 tons per hour. There
will be a traveling bridge with a span of 160
feet, carrying coal-reclaiming machinery with a
capacity of 250 tons an hour. There will be in¬
stalled a coal reloading equipment to coal vessels
of any size alongside the dock. The coaling
berths will accommodate seven vessels alongside
the pier. Six may be coaled at the same time.
.Any vessel that can enter the harbor can be
accommodated.
At the end of the pier will be large elevated
storage bunkers for immediate delivery to ves¬
sels at the dock. The coal as it passes into
vessels will be weighed by a registering apparatus.
The entire system will be electrically operated,
including the coal transfer system with its cars.
The wharf will be of the most modern and per¬
manent type. The material in it will be rein¬
forced concrete. The cost of the improvement
is apportioned in the following manner : Land,
$350,000; dredging work, $200,000; wharf, $150,-
000 or $200,000; plant, $200,000 or $250,000.
The Inter-Islan(i Company have made a con¬
tract to take a large tonnage of Japanese coal.
No. 13]
THE BLACK DIAMOND
249
A Cheap and Effective Sign.
A sign that is always effective, even though
it is used in a good many localities, is easily
available to the average coal dealer. It con¬
sists of making a background of coal dust,
covering a plot the size of which will depend
on the height of the letters and the number of
words to be used in the sign. The letters
themselves should be composed of marble
chips or some other extremely white stone.
Usually these chips can be obtained without
cost from any monument or stone-cutting
shop.
In order to be most effective, the ground on
which the sign is made should be built up,
rising toward the rear, so that the name of
the company or the coal which is being adver¬
tised will “stick out.” The writer recently
sav/ such a sign which was surrounded by a
lawn in front of a coal yard, and it looked
good. If the yard is passed by many people,
or is seen from passing trains and street cars,
it will furnish general publicity just as valu¬
able as though the retailer had spent .a lot of
mone-y for an electric sign, though, of course,
the latter would work at night as well as
during the day.
Building Up Specialty Trade.
One of the best ways to build up a trade on
any specialty is to push one thing all the time.
This applies to handling smithing coal. Here
is an item which the average retailer does not
pay much attention to, hut it is capable of
being made a good profit-maker, if it is han¬
dled right. Right handling consists, first of
all, in getting the coal that suits the smiths
of the territory in which the dealer is located
and, second, in pushing it as a quality propo¬
sition.
On the first score, considerable experiment¬
ing may be necessary. This is not to say
that there are many inferior smithing coals on
the market, but the fact is that the require¬
ments of the blacksmiths are likely to vary,
and a coal that will “get by” with one smith
may be declared unsatisfactory by some more
particular operator somewhere else. Hence,
the dealer should test different coals in use,
and when he has got the one that pleases the
majority of his trade, he should stick to it to
the finish. He can’t afford to change.
Now, having a coal that he knows is right,
he can properly feature it, preferably by name,
and talk it up as a high-grade smithing coal.
If the concern putting out the coal has given
it a trade name, which the dealer plans to use
as well, some arrangement for exclusive repre¬
sentation in that territory may be made by
the retailer; otherwise, the advantage of ad¬
vertising the name will be lost, inasmuch as
any other dealer could fill an order for that
kind of coal But as it usually works out to
the mutual advantage of the operator and the
dealer to advertise a good smithing coal under
the trade name, an exclusive sales proposition
will usually be found acceptable to both
parties.
As to profits in selling smithing coal, the
trouble is largely that dealers fail to empha¬
size quality enough. .Some of them are not
delivering it, in the first place; and others listen
to the demands of the smiths for a cheap coal,
instead of making them listen to a selling talk
in behalf of a quality variety. If the latter
policy is followed, and the folly of using an
impure coal for welding metal with is prop¬
erl3f emphasized, the smiths will be willing to
pay a few cents a hundred more in order to
get a coal that the dealer is willing to stand
back of in point of qualit>^
In short, the application of merchandising
principles to selling smithing coal will make
this specialty a good money-maker, instead of
a neglected side issue which detracts from,
rather than adds, to the profits and prestige of
the retailer.
Disadvantageous to Incorporate.
retailer who read the article in this de¬
partment on the subject of incorporating took
issue with its conclusions on one rather im¬
portant ground.
“Most business men find it convenient to go
to the bank now and then and ask for accom¬
modations,” he said. “When John Smith, coal
dealer, goes there to borrow money, the
banker considers him as a credit risk and real¬
izes that he, as an individual, is responsible for
the payment of the note. He knows that all
that Smith possesses can be attached to sat¬
isfy this lialDility.
“But if Smith incorporates for, say, $10,000,
tlie banker knows that the note signed by the
Smith Coal Company is good only to the ex¬
tent of the assets of the corporation. In fact,
that is one of the reasons given in the article
for incorporating — limiting tlic individual’s
liabilities, and getting away from the responsi-
l)ilities of the business. The bank, however,
is likely to offset that by curtailing the credit
of the corporation, as contrasted with that of
tlie individual.”
While this superficially may seem important,
in reality it is not as important as it looks. Iir
the first place, the average banker knows that
there is a big “moral hazard” in lending
money. He lends more on the moral charac¬
ter and standing of the individual than merely
by looking at a statement of capitalization.
If he knows that John Smith owns the Smith
Coal Company, practically speaking, he will
lend on the strength of Smith’s good name
and general reputation for reliability, even
though the loan is made to the Smith Coal
Company. Besides, in case of need, John
Smith can endorse the note, and thus add his
individual credit to that of the company. But
the liability would be limited to that particu¬
lar note, instead of having to apply to every
obligation of the business, as when it is run in¬
dividually.
Another phase of the question is to be con¬
sidered in connection with partnerships. When
two men go into business together, without in¬
corporating, they must and do trust each other
implicitly. Yet everybody knows of cases
where a crooked partner has wrecked a busi¬
ness and ruined the man who trusted him.
Why should any man take such chances, when
the interests of the business can be more ac¬
curately taken care of and one’s individual
property protected from the mistakes or negli¬
gence of the partner, Irj' means of the distribu¬
tion of stock?
Incorporating means more formality and
red tape, of course, Imt in the average indivi¬
dual business there is too much informality for
ilie concern’s own good.
Posting the Public on the Market.
When the first frost is recorded, and later,
when the first flurry of snow makes pcojile
realize that cold weather has really arrived.
the dealers always have a big run of business.
Why?
Because the fact that they need coal is
brought home in a forceful way to hundreds of
careless consumers, who, like the famous
grasshopper, are so improvident that they fail
to anticipate the needs of the future.
The same idea can be used to develop busi¬
ness at the 'time when trade is usually needed
most, that is, just after the summer storage
season is over, and before actual consump¬
tion begins, by keeping the public informed re¬
garding coal market conditions. This is more
“news,” the use of which was suggested some
time ago, and often its publication will rouse
consumers to the realization that they are
overlooking a bet in postponing the purchase
of coal for winter use.
An Ohio Valley dealer used what amounted
to a report on market conditions recently in a
newspaper ad, and the number of telephone
orders that resulted showed that he had hit
the right note. In his ad he included the fol¬
lowing: “Mine labor is short, because of men
going back home to fight; the exportation of
coal is growing by leaps and bounds, and will
increase more rapidly with the approach of
winter. Weather observers predict a long
cold winter — are you prepared?”
Many issues of The Bl.\ck Di.xmond con¬
tain important forecasts of market conditions
pointing to higher prices, and a good plan
would be to bulletin these in the windows, or
reproduce them in newspaper ads. Coming
from an authoritative source, they would im¬
press the reader with the fact that the pres¬
ent is the most advantageous time to buy
coal and to get under cover before disadvan¬
tageous conditions develop.
Study Heating Problem.
The more a coalman knows about the use
of his coal, the better service he can give his
customers. That is to say, the more he knows
about the problem of heating a dwelling, the
better able he will be to take care of com¬
plaints and requests for information about the
use of his coal. Often the coal is blamed for
poor heating results when the method is en¬
tirely at fault.
The fact that heating is a technical proposition,
and that it must be dealt with in a technical and
expert way, was demonstrated by a reverse Eng¬
lish process recently in a city where gas heat¬
ing has been introduced, and is displacing coal
furnaces to some extent. The sales manager
of the gas company decided, as a novel means
of hamlling the proposition, to have school¬
boys undertake tbe solicitation of consumers,
with the idea that they would get after their
parents and friends and persuade them to give
gas a trial.
Although it has been said — for publication —
that this plan was a great success, the writer
has positive information that it fell flat. It
has been continued by the company more be¬
cause of the advertising value of the stunt
than because it has been selling gas instal¬
lations by means of the “boy salesmen.” The
weakness of the idea was developed promptly,
in that it was impossible to educate the boys
to discuss such a complicated and technical
question as to the reasons for substituting
gas for coal, if any, and their solicitation
amounted to little mere than nagging their
friends and acquaintances for orders. A few
real prospects may have been developed, but
the results were not comparable to what might
have been done by the use of experienced,
liigh-grade salesmen.
All of which goes to emphasize the proposi¬
tion that to sell heating appliances, fuel or
anything else connected with the proposi¬
tion of keeping a heme comfortably warm
during the winter, the salesmen must know
the game from A to Z, no matter whether he
■represents you, the furnace dealer or the gas
company.
In this connection, many gas appliance
dealers feature apparently as an exclusive talk-
in,g-point in favor of their apparatus the fact
that it may lie controlled by the use of thermo¬
static devices, so that the user can go to bed
at night, with the gas turned low, and have
it aut'tmatically increase tlie heat tibout an
liour before rising.
.^s a matter of fact, the use of tliermostals
on coal-burning devices is just as effective,
;ind the successful exploitation of such appli¬
ances in connection with coal-furnaces by coal
dealers — the logical people to handle them —
has been described in this department.
250
THE BLACK DIAMOND
[September 25
fubi.ishz:d every Saturday by the
BEACK DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
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Address all communications to
THE BEACK DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
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Saturday, September 25, 1915.
INDEX.
Special Articles.
Page
Tests Showing the Flexibility of House Furnaces.... 241
Putting a New Fuel on the Commercial Map . 242
Indiana Production . 242
The Regeneration of the Galesburg District . 243
Paying Commissions on Canceled Orders . 243
How Retailers Should Advertise Their Coal . 244
An Effective Collection System . ■. 244
Coal in Canada . 244
Three Railways Increase Coal Rates to Tide . 245
Association News . 245
The Reading’s First Aid Field Day . 240
Government Regulation and Modern Business . 247
Honolulu Coaling Plant . 248
Field of the Retail Dealer . 249
Editorial . 250
The Retailers’ Attitude Towards Line of Fuels...... 251
News Local to Chicago . 252
Men Prominent in the Coal Trade’s Eye . 252
Facts Which Determine Our Export Prospects . 253
Reading Revenue . 259
Market Reports.
General Review and Chicago . 254
Pittsburgh and Cleveland . 255
Cincinnati, Birmingham and Omaha . 250
Louisville, Denver, Duluth and St. Louis . 257
New York . 258
Philadelphia . 259
New England, Buffalo and '^Tltimore . 260
Hocking Valley . 15
A Simple Retail Problem.
The problem of the retail coal trade,
which sometimes seems to be so mysti¬
fying, is exceedingly simple after all. It
can be expressed in a very few words.
We will assume that the retailer has fifty
thousand dollars invested in his business.
He wants to make that money, we will
.say, earn him ten per cent or $5,000 a
year. How to do it is all the problem
there is. Only two ways are known in
which this can be done.
First, the retailer can get the $5,000 by
getting a margin of profit of ten cents a
ton on fifty thousand tons of coal. That
is, he can get a small margin per ton and
do a tremendous business.
Second, the dealer can get his $5,000 by
handling 10,000 tons of coal and charging
enough to yield a profit of fifty cents a
ton. That is, he can handle a small vol¬
ume of business, but get a good margin
of profit on each ton.
Those are the only two known ways of
making a given amount of money out of
the coal business. As a matter of fact,
there are no other ways. The individual
retailer must elect which of the two he
is going to try. If he goes after tonnage,
he is likely to be disappointed, first, be¬
cause his community may not yield him
that amount of business and, second, be¬
cause, if it were possible, he would have
to take tonnage away from somebody else.
It is not safe to proceed along the latter
line ; it always starts a fight.
The only serious obstacle to getting
quite a profit on a small volume of busi¬
ness is the dealer himself. If he gets a
good margin, the retailer must name
prices which will let his competitors live;
he would have to be content not to make
all the money. That, perhaps, is the
hardest job that any man has to face — to
let somebody else make money while he
is making some for himself.
Still, the point made at the outset is
proved. The retail problem is simple —
mighty simple. In essence, it is : “If you
would make money, don’t be a hog.”
A Sound Conclusion.
The American Mining Congress held
its convention in San Francisco this week.
Carl Scholz, upon completing his second
year as president, stated the purpose of
the organization. He summarized one
conclusion in substance as follows :
“The social and economic phases of
mining are being discussed broadly, and
especially in the halls of congress and of
the state legislatures. The disposition of
politicians is and has been to adopt con¬
cerning such matters the view of those
who represent the largest number of votes
— in an organized sense. They adopt, for
example, the view of the miner as op¬
posed to the view of the operator.
“The American Mining Congress is not
an antagonist of labor, nor a protagonist
of capital. It stands firm on the principle
that these are co-ordinate forces in busi¬
ness. Also, it insists that the government
of the United States shall show no par¬
tiality to either force.”
If Mr. Scholz had done nothing else —
and he made a wonderful record as an
executive — he gave the Congress a slogan
and the government of the United States
a theory on economic and social c^uestions.
All of us can get behind that doctrine and
say that it must be accepted by the gov¬
ernment as final and binding. That is,
ours is a government of all the people.
Therefore it is the government of capital
as well as of labor.
By the same token, it is the government
of labor as well as of capital. For this
reason Mr. Scholz’s theory is per¬
fectly sound. No government is safe
which deviates from it.
“Grand Army Talk” in Coal.
H. A. Kuhn of Pittsburgh has coined
a meaningful expression. He labels cer¬
tain lines of argument and certain tech¬
nical expressions of the trades and pro¬
fessions as “Grand Army Talk.”
For example, if a doctor prescribes com¬
mon salt under its latin name, that is the
Grand Army talk — the mystery stufif — of
medicine. If he gets you to take it and
to pay him $5.00 for his services, that is
making the system good. If a retail dry
goods house sells a woman three yards
and a half of cotton made into the form
of a dress and persuades her to pay $25.00
or $30.00 for it because she is getting
“lines,” the extortion exacted in the name
of “lines” is another case where the Grand
Army talk of the dry goods trade is doing
yeoman service. If a man, who does not
know anything about anything, holds a
position as an official in the mines be¬
cause he can talk the jargon which pre¬
vails below ground, the discussion which
mystifies but means nothing, is the Grand
Army talk of the mines. So we might
go on with the technicalities of the law,
of the marine business, of banking and a
few other things. We would soon find
that the mystery which is contained in
twenty-five or fifty words of their lingo
is the only thing which persuades the
Imyer to pay a big price for mediocre
service.
It may be that coal prices, generally,
are low because coal men have never had
the ingenuity to invent any Grand Army
talk of their own. There was a chance
at one time for the coal men to surround
their business by a choice variety of mys¬
tery talk and really make some money out
of it. A crowd of chemists, sitting in
London, decided, in future, to measure
the value of coal by the British thermal
units it contained. That was a golden
opportunity.
However, the coal trade was not wise
enough or did not have the commercial
gumption to grasp the opportunity. In¬
stead of absorbing the B. t. u. basis and
of beginning to coin money by springing
a line of mystery talk, the operators
fought even the idea. They allowed the
buyers of coal instead to use it as a
weapon to club the coal trade over the
head with. The coal salesmen instead of
using it as a scheme to boost the price,
used it as an ingenious way to cut the
price. Thus the coal trade had a beauti¬
ful opportunity to get a full line of Grand
Army talk and threw it out of the window.
As 5 result the trade is on the same old
basis it has occupied for a century — the
only thing which attracts an order is the
statement : “I will cut that fellow’s price.”
A Pertinent Observation.
In a summary of the British coal situ¬
ation, the Wall Street Journal makes this
significant assertion :
“The miners are receiving record wages
with war bonuses, are working short time,
as they are able to make much in lessened
hours. More wages are thus decreasing
production materially.”
As a matter of fact, England’s miners,
instead of working their full stint of eight
hours a day, are making as much money
as they formerly did while working six
hours a day ; sometimes they work only
four hours a day. That is, the miners won
their increase in wages by their statement
that the war had increased the cost of
living. When they got the higher pay,
however, they belied their own plea of
poverty by curtailing the hours of work
so that they now make the same amount
as they did at the old rate.
This situation is not peculiar to Eng¬
land or to the present minute. Precisely
the same thing has been seen in American
mines many times. The miners in Amer¬
ica have declared that they cannot live on
their wages and have been given ad¬
vances. But when they got the higher
rate they instantly lopped off their work¬
ing time so that in the end they were mak¬
ing the same amount they formerly had
made. Thus the miner seems not to be
interested in more money but in less work.
That is the point that we must all keep
in mind when disposed to sympathize too
much with the “down-trodden” miner.
251
No. 13] _ THE BLACK DIAMOND.
The Retailer’s Attitude Towards Line of Fuels.
Every once in a while the question comes
up: “VVhar coal shall the retailer buy?
What arrangement shall he make with the
producing company? How far shall he go
as the advocate of the product of a certain
producing company? What is the correct
attitude of the retailer towards special agen¬
cies?” and so on.
A. J. Bunge, president of Bunge Bros.
Coal Company of Chicago, has reduced this
to a simple formula. In substance he says :
“I am a retail merchant in coal. I buy the
coals which I think will sell. I try to sell
the coal which I think my customers can use
to best advantage. I never, however, forget
the main point which is that 1 have my own
money invested in this business. It is my
money and I have to earn dividends on it.
It is my company that is going 'to prosper
or suffer if I make or do not make the right
selection of coals. It is my trade that is go¬
ing to grow if I do the right thing and it
is my trade that is going to fall off if I do
the wrong thing. Therefore, I am not ad¬
vocating anybody’s product. I am not com¬
mitting myself as a representative of any con¬
cern but my own. If any producer wants to
acquaint the trade with his coal, he can do
it at his own expense, but not mine.
“As a merchant I have two obligations.
One of them is to myself and that is to buy
coal as cheaply as I can, and sell it at as
good a margin as I can. That is the obliga¬
tion which I owe to myself as a business
man. The other is the obligation to select,
out of the numerous offerings of coal the
ones which will meet the local conditions and
give the best service, the price considered.
That does not mean that any one coal will
fit all requirements, because I know it won’t.
I must have different coals to meet different
demands and different tastes. My yard is a
sort of department store in coal.”
Mr. Bunge has another expression which
in detail tells how he carries out his plan.
He says:
“It is a waste of time and money to put
a 2:.30 horse into a 2:13 race; but if you
have a 2:38 horse and there is a 2:30 race,
go to it.”
In other words, a dealer who is a merchant
in coal is wasting both his time and his
money if he tries to force an inferior coal
on his trade as a substitute for some good
coal already in use, especially if he tries
to get a price for the poor coal that is be¬
ing charged for the good coal. Mr. Bunge
does not believe that 'the average house¬
holder is a mutt and will take anything that
the retailer wants to hand on to him regard¬
less of whether or not it has any merit.
If he wants to substitute, therefore, a
cheaper grade of coal for one that is already
in use, he makes sure that the saving is in freight
rate, and not in the quality. There is one of
the big points in the whole Bunge scheme of
buying and sellings coals.
1-Ie thinks — to go into details a bit —
that if the coal costs .$3.00 at the mines
and if the freight rate is $3.00 he is
going to have to invest $4.00 in a ton of
coal in order to make whatever margin of
profit he thinks is right. If he wants, for
example, to make twenty-five cents a ton,
he has to invest $4.00 to make twenty-five
cents; his profit is one-sixteenth of the
amount which he puts up.
If he can get a similar grade of coal which
sells at the mine for $1.50 and moves it to
market at a freight rate of $1.00, he has in¬
vested only $3.50 in order to make his twenty-
five cents. Therefore, the profit is one-
tenth of the amount invested. Thus he makes
a bigger percentage of profit on his money
bj' handling the latter and not the former
coal.
However, as he says, it is mighty poor
policy to try to increase the percentage of
profit by trying to substitute a poor coal
for a good one.
As illustrating Mr. jBunge’s point about
not becoming the special representative of
any one particular producing company, he
has adopted for one grade of bituminous
coal the name of “Quaker Bootless.” Any
one can look all through the trade names
adopted by the operating companies and find
no where any reference to that name. In
fact, that is a copyrighted name for the prod-
A Bunge Bill Board.
net which moves out of Mr. Bunge’s yard
only. His supply of this coal is bought from
one of the western operators whose product
is quite well known under another trade
name. Mr. Bunge could very easily have
taken advantage of the advertising which the
producing company has done extending over
a period of years. However, if he did that,
he would be playing the other fellow’s game.
He would be committing himself to the other
fellow’s product for an indefinite period in
the future. This might prove embarrassing.
For example, the producing company might
decide to deteriorate the product. If Mr.
Bunge was com.mitted to that coal by the ex¬
penditure of a lot of money for advertising,
he would have to pass on the deteriorated
coal. This would destroy the good will which
had cost him so much money.
Also the producing company might, at
some time, say:
“You have spent entirely too much money
to abandon the use of our coal, so we are
going to advance the price on you.”
Mr. Bunge would be up against the propo¬
sition there of either paying the price de¬
manded or abandoning his investment for
good will.
He doesn’t care to commit himself to any
one that far. So he has given to a coal of
a certain grade his own name of “Quaker
Sootless.” A couple of illustrations herewith
show how he advertises that coal throughout
Chicago.
Being thus secure in the fact that he has
a long time program which will work out to
his increasing advantage, Mr. Bunge can af¬
ford to spend more money for good will by
giving service to the householder. Thus, he
advertises that if this coal is not satisfactory
it will be taken out and the money refunded,
no charge being made for the coal used. Fie
has been doing this for a number of years,
and says that on only three occasions has it
been necessary for him to take out any kind
of coal.
Further, he can afford to b^iy good will by
giving such good service as showing the
householder how to use any particular fuel.
One incident will illustrate how he goes
about giving this service. A woman who
had bought some of his coal recently com¬
plained that it would not hold fire over night
and that frequently, when she thought she
was going to have a good fire throughout
the day, it went out on her. Mr. Bunge sent
out his demonstrator who soon discovered
that the whole trouble was in the regulation
of the drafts. That is, when the woman
thought she had banked the fire for the night,
she left the draft on as she would during
the day. Naturally the fuel bed was burned
out b}"^ morning. This same thing had hap¬
pened during the day. Fie told her how to
regulate the draft and the trouble was ended.
Another investment which Mr. Bunge makes
in good will, seeing he is so secure in his
permanent advantage, is that he offers to
send any customer fifty, one hundred, or one
thousand pounds of this coal for trial. This
is just one way of getting the coal introduced
in small lots among customers, who under
ordinary circumstances buy much larger
quantities.
Another trade name which Mr. Bun,ge has
created is “New Era Chestnut.” This sug¬
gests, at first, an anthracite coal, but it is
not. It is a smokeless coal which Mr. Bunge
has handled for several years. You can also
look among the trade names of producers and
not find this name mentioned. It is a copy¬
righted trade name of a certain grade of coal
moving out of Mr. Bunge’s yards.
He found a short while ago that this coal
would work very well in an ordinary hot
water heater. It was a substitute for a coal
that ordinarily sells at a much higher price.
There the same old practice was followed.
He substituted the coal that would give equal
satisfaction, but selling at a lower price for
one that had been selling at a higher price.
That is, his substitution was in price and not
in quality. He has his demonstrators out to
prove this point also.
The other retailers, in other parts of the
country, may not be convinced that this in¬
dividualistic campaign is a pronounced suc¬
cess. However, Mr. Bunge started with one
yard and now has five. He started with a
modest luisiness, and now he is the largest
individual dealer in Chicago. He started sell¬
ing anywhere that general advertising carried,
but delivered the coal from the yards of
other people. He ended by letting his yards
follow his business as his customers spread
to all parts of Chicago. Thus his individ¬
ualistic campaign has won on every point,
and he has carried it on long enough so that
It can be recommended to any one.
In meetings at Fairmont, Charleston and other
points in West Virginia the various operators’
associations of that state have denounced the
plan of proposed freight rate increase on West
Virginia coal to the west and northwest. The
Central West Virginia Coal Operators’ As.socia-
tion, the Kanawha Coal Shippers’ Association
and the Splint and Gas Coal Association are
among those taking action. The plan will be
vigorously fought before the Interstate Com¬
merce Commission, as it is claimed that the move
would be ruinous to West Virginia interests and
would close many mines.
At night— You fix your furnace
with a few shovels of
In the morning —
You have a warm
house and a live fire.
sGoal
“Burns clean!” Abundance of heat for little money.
I — r-v r — ! I — 1 r~i ^ i - 1 exclusive
AGENTS
Phone West 1871
One of Bunge Bros.’ Street Car Advertisements.
252
THE BLACK DIAMOND
[September 25
Men Prominent in the Coal Trade’s Eye
News Local to Chicago.
Reports from Washington this week said that
the Interstate Commerce Commission had vacated
its order which put the new western rates in
effect on September 30. The report said that the
rates were suspended for sixty days, within which
time the commission would decide whether it
would grant a rehearing asked hy the railways
on rates on some commodities and by the oper¬
ators on rates on coal. Two railway officials in
Chicago said on Friday that this report is in
error. Instead, the rates will take effect as in¬
dicated. On h'riday, a meeting of coal men and
railway officials was held to see if in some way
the action of the railways could be modified.
C. D. Caldwell was in Cincinnati this week.
Gordon Buchanan comments that collections are
improving.
J. K. Bering is spending the week end on
his farm at Lake Villa, Ill.
A. J. Moorshead, the general manager of
the Madison Coal Corporation of St. Louis,
spent the latter part of the week calling on
the trade.
The Knox county Indiana operators got to¬
gether at Terre Haute the latter part of last
week and formed an association which will main¬
tain a statistical bureau similar to those now
being maintained by the three associations of
Illinois.
The announcement is made by Colonel Frank
Ellison, general manager of the C. G. Blake Com¬
pany, that effective October first H. M. Taylor is
employed as salesman of that company in the
Chicago territory. Mr. Taylor succeeds Paul
James, who is now traveling in the southeast,
representing another company.
W. R. Kernohan, western representative of the
Pocahontas Coal Sales Company, left the latter
part of last week for a trip to San Francisco
where he will spend a month. Incidentally he
is going to take in the exposition while in the
west. He was accompanied by Mrs. Kernohan,
who is in California to visit her parents.
W. J. Dillon suggests that the hoof and mouth
disease is hurting the coast trade. That is,
whole farms are quarantined. The farmers can¬
not sell their produce or move it to market.
Other farmers must make long detours to avoid
the plague spots. Thus traffic between town and
country is stopped and the sale of coal to farm¬
ers is nil. He thus proves his point.
One of the visitors in Qiicago the latter part
of last week was W. J. Snyder of the American
Coal Mining Company with headquarters at
Brazil, Indiana. He is quite encouraged over
the outlook for coal from that field for this
year and believes that if the operators can really
come to an appreciation of what it costs them
to produce coal and can use that as a basis for
prices, there will some profit from the business.
The gossip in the Chicago trade for this week
has concerned itself mainly with the status of
smokeless coal prices. It became common knowl¬
edge early in the week that quite a lot of mine
run was being sold for $1.25 and that some lump
and egg was being sold for $1.75, while quite a lot
of it was going at $2.00. Those who are inter¬
ested in this market are trying to find the cause.
The price cutting might have started from either
one of two things. Those who have good mem¬
ories, recall that in 1911 some of the eastern
operators cut the price on the Panama Railroad
contract and this resulted directly in a price
war in Chicago. Just recently the price was
cut again on this same contract and there are
some who believe that a situation is developing
in Chicago similar to that of 1911. Others are
not quite so sure that the Panama contract has
anything to do with it. They point out, in the
first place, that quite a lot of lake coal has been
sold below circular this year, a fact which is
becoming known. Also the circular price arrange¬
ments were disturbed in August allowing the
retailers to fill up their bins with cheap coal.
Now that they have bought all the coal they
want, they are not interested in paying a higher
price. There are some in Gticago who believe
that the latter is the real underlying influence.
Whatever may be the cause, the fact remains
that smokeless prices arc off in Chicago for the
time being.
Homer H. Allen.
The announcement has just been made that
Homer H. .'Mien, who has been connected with
the Susquehanna Coal Company for the last
twelve years, has been appointed sales agent for
W. A. Gosline & Company of Toledo, Ohio, with
headquarters at 305 Majestic building, Detroit,
Michigan. He opened his office on September 22
and will have charge of the business in the state
of Michigan. Mr. Allen will have an assistant,
who will be named at a later date.
J. W. Meyers, who has been connected with
W. A. Gosline & Company for the last twelve
years, with headquarters at Lafayette, has moved
his headquarters to 3048 North Illinois street,
Indianapolis, and will cover southern and central
Indiana.
It is also announced that C. O. Wendell has
joined the W. A. Gosline sales force, this taking
effect September 20, and will make his head¬
quarters at Fort Wayne, covering northern In¬
diana.
Homer H. Allen, who becomes the head of the
Detroit office, is one of the interesting salesmen
in the anthracite field. He is a bachelor of
science in chemistry, having received that degree
from the Penn.sylvania State College in 1897. In
1904 he entered the coal business with the W. L.
Scott Company, working for Clarence Thompson,
who was then general sales agent. A year later,
or in 1905, he went with the Susquehanna Coal
Company, of which Mr. Thompson was general
western agent. He has continued since in that
capacity.
Now he has joined the force of W. Gosline
& Company, working under H. J. Heywood, presi¬
dent of that concern. This firm acts as dis¬
tributing agents for “Old Company Lehigh’’ coal,
produced by the Lehigh Valley Coal & Navigation
Company. It is, as is known, the oldest anthra¬
cite producer, having been established in 1820.
Herbert M. Wilson.
Herbert M. Wilson, director of the Department
of Inspection and Safety of the Associated In¬
surance Companies, formerly of the Bureau of
Mines, is in San Francisco, September 16 to 25,
participating in the various engineering con¬
gresses. He will be actively concerned in the
first aid and mine rescue demonstrations and
contests of the board of managers of which he
is chairman. He is also scheduled to read papers
on mine safety and on workmen’s compensation
before the mining sections of the International
Engineering Congress, the American Mining
Congress, and the World’s Insurance Congress.
Going to and coming from the Pacific Coast,
Mr. Wilson will visit various coal mining states
for the purpose of perfecting arrangements for
inspection of mines for insurance by the Asso¬
ciated Companies under workmen’s compensa¬
tion.
Thomas J. Cossey.
Thomas J. Cossey is secretary of the Dan¬
ville (Ill.) Crystal Ice Company. In between
his jobs of handling ice in the summer and coal
in the winter, Mr. Cossey is something by way
of an association man connected with the Illi¬
nois & Wisconsin Retail Coal Dealers’ Associa¬
tion. He is a director of that organization and
one of its principal advisers. He has been one
of the men behind the guns in the big organiza¬
tion and has been depended upon both for work
and cash when any common cause in the coal
trade called for either. His place of business
is at No. 106 Washington avenue, Danville, Ill.
Mr. Cossey was born at Gessie, Ind., No¬
vember 5, 1880. He obtained his preliminary
education in the common schools of Gessie and
then finished it off in the school of practical
experience. One of the jobs he has held which
he puts down to a part of his educational ca¬
reer was that of vice-president of the Mer¬
chant’s Credit Exchange of Danville. There
he learned a lot of things about how to keep
money when you have it by not letting people
have things when they have neither the money
nor the intention to pay.
Mr. Cossey is one of the men who did not
graduate into the coal business from the rail¬
road. On the contrary, he came to it from the
farm where he was born and raised. He left
the farm, however, on December 1, 1900, or
when he was just a little past ten years of age.
When he was fourteen, or on June 1, 1904, he
took a position with the Ike Stern Company as
a stock-keeper. A short time thereafter he left
that concern to take a position as buyer for the
May Company of St. Louis. On the first of
September, 1904, he left the latter concern and
returned to the Ike Stern Company as general
office man.
Two years later, having had a training in
merchandising, he decided to go into business
for himself, and organized the Cossey Coal
Company in March, 1906. This business was
continued until 1912 when, in connection with
H. C. Dies of Clinton, Ind., he organized the
Danville Crystal Ice Company and started in
to the manufacture of ice. The output of their
plant now is sixty-five tons per day.
Mr. Cossey has always been interested in as¬
sociation affairs and on two occasions was
elected as vice-president.
C. C. Corey, a wholesaler in coal and coke,
with headquarters in the Majestic building, De¬
troit, announces that in order to handle the rap¬
idly increasing business in western Michigan to
better advantage, E. J. Conroy, formerly sales
agent for Castner, Curran & Bullitt, has been ap¬
pointed resident manager at Grand Rapids, Mich¬
igan.
Some Bull Moose Miners.
WiLKESBARRE, September 22. — From a letter
that was published in one of the local papers, it
would appear that President John P. White of
the United Mine Workers has found that there
is a “Bull Moose” element in District No. 1 that
needs a squelching.^ In this letter he was forced
to “sit down on” some of the “progressives,” who
have been mussing things up and rattling the
dry bones of dissatisfaction in the courts. The
“progressives,” through Thomas Holton of Dor-
rancetown, brought suit last Friday against Peter
O’Donnell of Wilkesbarre to prevent him from
performmg his duties as executive. Holton
charges that O’Donnell was elected by fraud.
In reviewing the case. White has stated in his
letter that such matters are for whipping out
within the courts of the organization of the
men before redress is’ sought in the civil courts.
Evidently White is yet to find out that it is
not all “beer and skittles” in holding the men
of the hard coal regions in line.
In commenting on the inactivity of any transac¬
tion in American co^l shares on the stock ex¬
change, the New York Times in its issue of
September 21 says; “Steadfast among the rapidly
changing scenes of the stock market drama is one
factor of stock exchange affairs which changes
not at all. That is the bid price for American
coal shares. Day after day and month after
month it remains at eighty with no offering fi.gure
following it. It has been so long — several years
at least — since there was a transaction in Amer¬
ican coal on the exchange that, doubtless, many
members do not know what the company is. The
company mines and sells soft coal from extensive
fields in M'est Virginia, pays dividends of six per
cent a year and has paid large extras. There are
onff- 60,000 shares all-told, all closely held, and it
is not often that sales occur in the open market
outside the Exchan.ge.”
Default havin,g been made in the payment of
l)onds of the Branchland Land Coal Company, a
West Virginia mining company, issued in 1907,
and secured by a deed of trust on the company’s
real estate, the Equitable Trust Company of New
York has advertised the property for sale on
Wednesday, October 20. The bonds are for $150.-
000, being 150 — six per cent twenty-year, first mort¬
gage gold bonds, at the denomination of $1,000
each. The estimated value of the property is
between $250,000 and $300,000.
It became known this week that the Sunday
Creek Company is now installing its six inch
screens in its mines in the Hocking district and
very soon will be offering six inch lump to the
western trade. No circular has been put out .so
far, but the statement is made that this coal
will sell at $1.75 at the mines or $3.40 delivered
into Chicago.- The resultant situation promises
to be interesting as this coal will be in competi¬
tion, at equal price, with three inch lump from
some of the other mines in the field.
No. 13]
The Export Situation.
Demand for export coal continues large, with
shippers being restricted in their shipments by
inadequate supply of vessels. Large orders are
now under negotiation, principally for European
.shipment that are delayed in consummation due
to the uncertainty of vessels, or the inability
to arrange charters to cover the tonnages that
figure in the contract.
Alost offers want c. i. f. bids, and there are
l)ut a precious few of the American exporters
who want to take chances on transportation under
present conditions.
The rumor pul)lished last week that France had
placed an order for 2,000,000 tons with American
shippers, so far lacks confirmation. Also, it
has not been possible to locate the source of an
inquiry this week for “1,500,000 tons of Poca¬
hontas.”
Some business is closing though, all the time,
and shipments are going forward in fairly large
volume.
A small lot of anthracite has been shipped to
Greece. This consisted of some nut and egg.
There have been some queries from France
and other European countries, but so far
no anthracite is known to have been shipped to
any of them.
Prices of New River and Pocahontas at Hamp¬
ton Roads are firm at $2.8.5 f. o. b. At Baltimore
and Philadelphia, the high grade coals are much
firmer.
The Welsh Coal Situation.
Latest mail advices from Cardiff show that
the coal trade has been greatly disorganized
l)oth by strikes of miners and the uncertainty
which prevails as to the settlement. Also ex¬
porting is still hampered by the restriction placed
i)y the government in issuing licenses. Further
restriction has been placed upon exports by the
admiralty, which issued an order prohiliiting the
sailing of British and allied vessels for forty-
eight hours, and this restriction it appears in
the case of Cardiff, has been continued beyond
that period. The delay in chartering has been
due to the fact that ship owners have been un¬
willing to tie up their boats when there was an
uncertainty as to when they would be allowed
to proceed. Shipments for the last week re¬
ported from Cardiff amount to 348,022' tons,
compared with 204,809 tons in the corresponding
week of last year. It should be borne in mind
that the comparison with the corresponding week
of last year, was during a period when the trade
was greatly disturbed over the outbreak of the
war, and shipping being greatly perturbed be¬
cause of the fact that the seas at that time were
not thoroughly cleared of the enemy’s warships.
Prices have been irregular. Best Admiralties are
still being taken by the government ; superior sec¬
onds range from 24s to 26s, and ordinaries at
22s to 24s. Monmouthshire coals are easy, best
Black Veins selling at 24s to 24s 6d ; Western
\’alleys at 23s and Easterns at 21s to 2'Os. Small
coals were weaker owing to the inadequate sup-
l)ly of tonnage. Best bunkers were offered at
18s and 19s; ordinaries at 16s 6d to 17s fid.
Baltimore Coal Exports.
Official statement of bituminous coal exported
from the port of Baltimore during the month
of August, 1915;
Countries — Tons.
France . • . r>,445
(jreece . 4,407
Italy . 87.547
Spain . 8,741
Sweden . 36,507
I^anama . . 3,123
(Til)a . 17,3)7
Arj?entine . 21,349
Hrazil . 4,056
(”olomI)ia . 2,600
Kciiador . 6,019
I'ruguay . 3,335
Fgypt . 10,214
210,760
Welsh Freight Rates.
b'ixtiires from Cardiff for the week ending
September lOtli liave l)een as follows: To Bor¬
deaux, 26 fcs. : Civita Vecchia, 31s 9d ; Genoa,
29s 6(1 to 31.s; Las Palmas, 17s; Lisbon, 18s 6cl
to I9.s; Marseilles, 32 and .3:! fcs.; Naples, 29s
to 30s; Port Said, .'i2s and 32s 6d ; Rouen, Ifis 9d
and 17s; Rosario, 25s fid.
b'ixtures from the Tyne for the same period
were as follows: To Boulogne, 16s fid and 23s;
THE BLACK DIAMOND.
Genoa, 30.s and 30s fid; Lisbon, 22's fid; Las
Palmas, 21s; Rouen, 17s 9d to 21s; Savona, 30s
and 30s fid.
Recent Coal Freight Charters.
Steamer I. P, Jasteen (Dan.), Virginia to Buenos
Aires, coal, 33s, prompt.
Barks Socotra (Nor.), Briar (Nor.), Kalliope (Nor.)
and Finland (Russ.), Philadelphia to Pernambuco or
Rio de Janeiro, coal, $6.25. “October.”
Schooner Dorothy, Norfolk to Pernambuco, coal, $0.50.
“September.”
Steamer Osterland (Br.), Baltimore to Swedeh, coal,
private terms.
Steamer Lysefjord (Nor.), Baltimore to Sagua, coal,
private terms.
Steamer Linda Fell (Br.), Philadelphia to Havana,
coal, private terms.
Steamer Northern (Br.), Philadelphia to Marseilles,
coal, private terms.
Steamer Dowgate (Br.), Virginia to La Plata, coal,
33s Gd. “September-October.”
Schooner Dorothy, Norfolk to Pernambuco, coal, $7.
“October.”
Schooner Annie Lord, Philadelphia to Moncton, N. B.,
450 tons coal, $1.70.
Schooner, James II. I-oyt, Philadelphia to Calais, 725
tons coal, $1.30.
Steamer Modiva (Nor.), Philadelphia to Guatanamo,
coal, private terms.
Schooner Henry S. Little, Baltimore to Point-a-pitre,
1,600 tons coal, $3.75.
Schooner Warren Adams, Philadelphia to Labucoa, P.
R.. coal, $4.
Steamer Dionyssios Strathatos (Greek), Atlantic range
to west coast Italy, coal, 43s 6d, “prompt.”
Schooner Florence Creadick, Philadelphia to Cardenas,
1,200 tons coal, private terms.
English Coal Exports.
Exports of coal, coke and manufactured fuel
from the United Kingdom during August and
the first completed eight months of 1913, 1914
and 1915:
.\ug.,
Aug.,
Aug.,
Country.
1913.
1914
1915.
Russia .
769,794
169,353
5,923
Sweden .
379,47.5
198.347
135,875
Norway .
154,887
253,467
260,812
Denmark .
248,746
243,019
320,754
798,177
132,026
Netherlands .
168,862
165,296
212,381
148,132
31 727
France .
946,378
562,783
1,542,530
Portugal, Azores and
Madeira .
9.5,924
77,729
71, n7
Spain and Canaries...
259,847
172,578
162,800
Italy .
665,618
444,779
419,810
Austria-Hungary .
64,286
17,602
(Jreece .
36,080
29,353
9,819
23,283
14,347
Turkey .
24^787
41,450
3,767
Algeria .
116,754
28,647
56,083
Portuguese W. Africa.
13,390
15,013
8,681
Chile .
21,039
17,720
2,611
Brazil .
111,504
48,983
52,429
Uruguay .
72,006
39,103
i9,m
Argentine Republic. . . .
290,741
98,344
130,576
Channel Islands .
16,004
11,354
12,998
Gibraltar .
29,161
15,544
39,768
Malta .
39,292
19,418
9.230
Egypt (including An-
glo-Egyptian Sudan) .
196,796
161,645
140,462
Aden and Dependencies
17,684
British India .
10,057
1,646
5
7,037
5,232
Other countries .
93;421
54,141
24,416
Total —
Anthracite .
231,590
106,210
137,163
Steam .
4.197,809
2,078,754
2,516,658
Gas .
962,574
668,454
710,512
Household .
137,375
85,660
125,470
Otlier sorts .
289,814
131,664
160,669
5,819,162
3,070,742
3,650,472
Coke .
113,423
68,498
89,574
Manufactured fuel . . .
140,278
70,159
113,748
6,072,863
3,209,399
3,853,794
‘first
EIGHT MONTHS.
Total —
Anthracite .
1,934,680
1,722,152
1 .537,429
Steam .
31,926,928
21,285,770
Gas .
7,587,554
7,535,840
4,995,210
Household .
1,160,811
975,974
743,436
Other sorts .
2,349,201
2,096,267
1,154,520
Total .
48,320,608
44,257,161
29,522,179
('oke .
712,698
694,061
576,218
Manufactured fuel - • .
1,363,324
1,324,9.17
1,165,114
50,396,630
46,276,159
30,962,900
Note. — The above figures do not include Admiralty and
certain other shipments.
Export Trade Briefs.
English coal exporters are having their troubles
in securing licenses, as witness the Colliery
Guardian of London, in its issue of September
3rd : “.A.t Wednesday’s meeting of the council
of the Newcastle Chamber of Commerce, the
secretary, Mr. Herbert Shaw, criticised the ad¬
ministration of the War Trade Department, and
gave the following instance of its inefficiency : —
On July ()th, a Newcastle firm made ajtplication
for a license. On the 7tli, the application was
acknowledged, but nothing further was heard of
it until July 2'4tli, when the War Trade Depart¬
ment asked for a guarantee as to the consignee,
253
and also whether the consignment had the ap¬
proval of the neutral minister of London. On
.August 3d, the guarantee was sent, and nothing
further was heard until the 19th, when the firm
put in another application, the second repeating
all the particulars contained in the first and, in
addition, the actual name of the boat in which
it was proposed to ship the cargo. That was
acknowledged on the 20th, and, on August 21st,
the War Trade Department wrote a long letter
asking for the same information which had been
sought on July 24th, and had been sent to them
on August 3cl. They had,' therefore, had this
information in their possession three weeks. The
business was not yet transacted. Mr. Thaw de¬
clared that there were thousands of reply-paid
wires lying unanswered .at the War Trade De¬
partment, which was good for the revenue, but
bad for those who sent them.”
France’s railways and industries are appar¬
ently, being favored as much as possible by Eng-
lancl as regards supplies of coal. The Colliery
Guardian of London in its issue of September 3d,
says; “The Etat Railway has accomplished a
splendid feat in bringing coal to the most im¬
portant state industries in France. Evoking the
Alliance, an emissary of the railway was able
to obtain two million tons of coal from the
British Admiralty on “the most-favored-nation”
terms. The Admiralty event lent ships to con¬
vey the precious freight to France. The whole
of the consignment is now resting in France,
the major part in great stacks which have been
formed at various points. To these stacks come
the military and naval authorities who have need
of the combustible for purposes of national de¬
fense. After the munitions factories come the
gas and electricity corporations and the munic¬
ipalities. In consequence of this provision a con¬
siderable diminution in the price of coal is
anticipated. The present figure to the private
consumer in Paris is as high as $20 per ton.”
A London cable on September 18th said that
unless Sweden is willing to grant concessions to
Britain in order that certain shipments can be
sent through Sweden to Russia, there will he
a continued embargo against Sweden by Great
Britain. This policy is now taking the form of
withholding coal. The cable said that Sweden is
desirous of getting concessions, but up to the
present has been unwilling to grant them. Sweden
needs coal liadly. Great Britain considers coal
rather a precious article just now, but there
would he enough to spare Sweden some should
she have a change of heart. Monday’s cables told
of a loan by Sweden to Germany of $10,000,000
in return for Germany’s consent to export coal
and other commodities to Sweden.
During August 3,853,794 tons of coal, coke and
manufactured f,uel were exported from the United
Kingdom at a value of 3,471,990 pounds, as com¬
pared with 3,209,399 tons, valued at 2,132,329
pounds, in August, 1914, and 6,072,863 tons, val¬
ued at 4,242,381 pounds in August, 1913. The
aggregate exports during the period January to
.August reached 30,962,900 tons, valued at 25-
454,699 pounds, as against 46,276,159 tons, valued
at 31,863,624 pounds, and 50,396,630 tons, valued
at 35,201,466 pounds, in the corresponding periods
respectively of 1914 and 1913.
For the first six months of 1915, England pro¬
duced 127,826,000 tons of coal, as compared with
140,274,000 tons for the same period of 1914,
a decrease of 12,448,000 tons. For the first half
year ending June, 1913, the output was 145,923,000
tons, for the half year ending December 31, 1913,
141,489,000 tons. For the first six months of this
year, Wales produced 26,111,000 tons, as com¬
pared with 28,316,000 tons in the same period of
1914.
The Panther Run Coal Company of Pardus,
Pa., is preparing to open the Pardus mine this
month on account of the increasing demand for
bituminous coal, and within a few weeks it is ex¬
pected to he running at full capacity. The output
when last operated, was about 500 tons a day.
The mine was at one time controlled l)y B. F.
Cartwright of Buffalo, who afterward went into
silver minin.g at Cobalt.
I'lic llutcliinson Hawk Company, has pur¬
chased the yards of P. A. Spracklen (de¬
ceased) in Trenton, N. J., and will continue
the luisiiiess under the new firm name. .An¬
other transfer of coal yard l)usiness was tlie
sale of the P. J. Fppclc retail interests to
llar\ey Reading. Mr. Reading was chief clerk
for Fppele for many years. Tlie annual turn
over of these yards is al)OUt 10,000 tons.
Facts Which Determine Our Export Prospects.
254
THE BLACK DIAMOND
[September 25
General Review.
Re-adjustment in Coal to Accommodate a
Larger Tonnage Is Being Effected
— Prices Tend Upward.
W'ithin the last week the coal trade, in a na¬
tional sense, passed into its most interesting stage
of the year. Up to now the trade has been con¬
cerned mostly with getting better prices than pre¬
vailed during the summer months on rather a
moderate volume of Imsiness. In the last week
or ten days, however, the volume of l)usiness has
gained considerable in every department. This
has necessitated that the operating companies
change their policies and they increased their out¬
put considerably.
The decision to increase the output seems to
have been made concurrently in about all the pro¬
ducing fields. The last week, theretore, has seen
speeding up of mine production in nearly every
di.strict. As a consequence, there has been, at
times, exhibitions of price uncertainty in most of
the leading coal centers. However, it is an en¬
couraging factor that this radical readjustment
did not disturb prices for more than a week or
ten days at the outside. As a matter of fact, the
rearrangement of market prices has been about
completed and now the operators are doing a bet¬
ter volume of business and also are getting better
prices than they were.
A first rate example of this change comes from
the west. The Illinois operators made two suc¬
cessive advances in prices. The first one came in
August and the second one in September. The
mines, at the time the first increase was declared,
were running to about fifty per cent of capacity.
Today they are getting tlie better prices while
running to about eighty per cent of capacity.
This, everything considered, is decidedly encour¬
aging.
.Also in the east the mines for a time were
charging higher prices while running to only fifty
per cent of capacity. This is known to be true
in the smokeless coal field. Today the mines are
running full and yet there has been only a tem¬
porary disturbance in the general price basis.
One of the most hopeful indications of the
trade is that the steam business, especially in the
east, has been increasing quite rapidly. There was
a disposition to fear, at first, that the excessive
activity of the steel mills in supplying war orders
for war munitions would act as a blockade to the*
return of prosperity at home. That is, it was
feared that the producers of steel would get such
fancy prices for their product abVoad they would
not he willing to sell at anything like a fair price
to consumers at home. It was feared, therefore,
that the high steel prices would blockade the re¬
turn of prosperity to home factories.
However, the best improvement in demand re¬
cently has come from the east, which is, after all,
the biggest consumer of steel. This demand has
come not from abroad, but from eastern mills and
factories. This is taken to indicate that while
the steel mills are doing a tremendous business in
war munitions, they are not letting this interfere
with home business. Instead, they are continuing
to adopt their old policy of separating their
foreign from their domestic price policies.
As a matter of detail, in the market in the east
there is a big increase in anthracite orders, the
dealers buying as the winter months approach.
In that section there has been, generally, a good
demand for steam coal and an especially heavy
demand for slack for coke making. In the mid¬
dle district, there has been a good demand from
retailers for domestic coal, a fair shipment of
coal up the lakes, and a steady increase in orders
for steam coal from factories. In the west, do¬
mestic orders are increasing, but preference is ex¬
pressed for the western coals. While a fair
volume of business is being done in some eastern
domestic fuels, both prices and tonnage for this
week are disappointing, with one or two excep¬
tions. In the east the increase in tonnage is being
gained at something like a sacrifice of price, but
this, as indicated, is a temporary matter.
Everything considered, the national market is
in first-class condition, due to the fact that a
very large volume of coal is being turned out
and the prices are holding quite firm.
In the east the car situation is becoming an¬
noying and as one writer puts it, the mines are
being put on .short rations of cars. .Also, in the
east, the labor situation is annoying because the
mines are all finding themselves short of workers.
Chicago Market.
The Buying of Western. Coal Continues
to Improve — Eastern Coal
Is Easier.
Office of The Bl.\ck Diamond,
Chicago, September 23.
There is a clear and well defined dividing
line in the Chicago market this week. East¬
ern coals are easier and in fact soft with one
or two exceptions. Western coals are firm and
stronger with no exception.
There is another difference also. Domestic
coals are in demand and steam coals are not
quite so strong, largely because production has
increased without there being any corresponding
increase in demand.
The car situation is not bothersome except in
spots. Collections are better, the improvement
in that direction being marked.
Generally speaking, the buying from the cities
is active; the country trade is not satisfactory
for many reasons.
Anthracite coal has had a lull within the week.
As one agent put it : “There was a bulge for
a time, but now there has come a reaction.” In
part this is easily accounted for. The weather
was threatening for a while, then turned cold.
Those who had no coal had to buy some; that
accounts for the recent spurt in demand. Then
the weather turned warm and buying stopped.
That accounts for the lull.
Smokeless coal has been far from satisfactory.
Whether it is the result of a low price made on
a big tonnage in the east, or whether it is the re¬
sult of a local situation in Chicago in August,
it is now a fact that the market is soft. Cir¬
cular price on mine run for example is $1.40, but
quite a lot of good coal can be had for $1.35.
Circular price on lump and egg is $2.25, but any
dealer can get almost any amount he wants for
$3.00 and some coals are sold for as low as
$1.75. The low prices on lump and egg are no
doubt the direct result of the better demand for
slack. The prices up to Thursday were :
F. O. B. F. O. B.
Smokeless— Chicago. Mines.
.Mine run . $3.3n@3.46 $1.25@1.4n
Lump and egg . 4.05@4.30 2.00@2.25
Not a great deal of Somerset County coal has
been sold within the week. The market there
is only fair. Naturally, with smokeless prices
off, Somerset county operators cannot get a high
figure. For this reason $1.15 to $1.25 is a good
price. The prices up to Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine ru.n . $3.20@3.30 $1.15@1.2h
Lump and egg . 3.70@4.0o I.65@3.00
The dealers are buying the Hocking coal now
that they should have bought in August. That
naturally makes the market quite strong. In
addition, some mines are closed down for repairs
and others are changing from small to large
screens. These two things shorten the supply
of coal. The prices also are varied. Some op¬
erators are adhering to $1.50; others are asking
and getting $1.75 for three inch lump. The
prices up to Thursday were ;
F. p. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.15@3.40 $1.50@1.75
Splint coal on the whole has been stronger
liecause of better demand in other directions.
Still, with the market on other eastern coals de¬
moralized, the operators have found it difficult
to advance prices. Those prevailing up to Thurs¬
day are unchanged as follows:
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
154inch 'ump . $3.05@3.15 $1.15@1.25
The market on eastern Kentucky coal is indi¬
cated by the price on domestic lump which in¬
cludes block. One producer is about sold up
at $2.35 ; another has quite a run of orders at
$2.05 ; another concern is doing a peddling busi¬
ness at $1.90 or less. All told, the volume of
business is fair. The prices up to Thursday were:
F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.r)5@4.15 $1.75@2.2.')
Egg . 3.25@3.75 1.35@1.85
In the main, the Franklin county situation is
unchanged from last week. The major opera¬
tors are, on lump, egg, and number one nut,
adhering to circular of $1.75 in the country.
However offerings at $1.60 are heard here and
there. The market on screenings covers a pretty
wide range. The major operators are quoting
sixty cents in Chicago and seventy cents in the
country. Other operators are quoting fifty cents
in Chicago and sixty cents in the country. Some
big blocks of screenings have been sold at all
of these prices. The prices up to Thursday
were :
F. O. B. F. O. B.
Franklin County— Chicago. Mines.
Lli'i'P . $2.65@2.80 $1.60@1.75
I'-gg . 2.65@2.8() 1.60@1.7o
«o. 1 nut . 2.65@2.80 1.00@1.75
No. 2 nut . 2.45 1.40
Mine run . 2.15@2.20 1.10(ai.l5
2-inch screenings . 1.55(®1.65 .50@ .60
The William.son county operators have been
quoting the same variability of prices heretofore
noted. The major operators are holding for $1.75
and getting it. The others are asking $1.60 for
the domestic sizes and some of them are accept¬
ing $1.50. The small sizes are easy because of
the general tendency to over-produce the steam
demand. The prices up to Thursday were :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . ?2.65@2.80 $1.60 01.75
Egg . 2.6502.80 1.6001.75
No, 1 washed . 2.6502.80 1.75
No. 2 washed . 2.45 1.40
A fair range of price on Saline county domestic
coal would be from $1.60 to $1.75. This is so de¬
spite the fact that the operators are trying to
maintain the circular of $1.75. What is true of
Saline county is true of all three of the south¬
ern counties, namely, the operators have been
increasing their output, but have been doing so
at an occasional sacrifice of price. That is, the
mines that were, a short time ago, running to
fifty per cent capacity, are now running from
seventy-five to eighty per cent. Saline county
screenings are fairly strong from sixty to seventy
cents, the former price being for Chicago de¬
livery only. The prices up to Thursday were :
F. O. B. F. O. B.
Saline County— Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Mine run . 2.20 1.16
Screenings . l.G5@1.75 .60@ .70
Ik* -inch lump . 2.35 1.30
Central Illinois coal has been fairly firm as to
all sizes except screenings. A little cutting on
the egg coal price has been seen here and there.
However, the operators have more nearly re¬
tained the circular than have those in any other
part of the country. Screenings have been easy.
Prices from thirty-five to forty cents would just
about cover what is being done generally. The
prices up to Thursday were :
F. O. B. F. O. B.
Springfield— Chicago. Mines.
Lump . $2.47 $1.65
Egg . 2.32@2.47 1.50@1.65
Nut . 2.47 1.65
Mine run . 1.87 1.05
Screenings . 1.17@1.22 .35@ .40
Knox county domestic coal prices have not
changed. The operators are serving a territory
close to the mines and are not putting much of
this coal on the Chicago market. Screenings,
of course, have eased off, but not so much so
as some other coals. The prices up to Thurs¬
day were :
F. O. B. F. O. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . 2.37 1.50
Mine run . 1.87 1.05
Screenings . 1.52 .65
In the Clinton field, the number four vein coal
alone is going to the domestic trade. This is
liringing $1.65 to $1.75. The number five and
number six vein coal is devoted to the steam
trade and the prices there are a little lower,
screenings commanding about sixty to sixty-five
cents. The prices up to Thursday were :
F. O. B. F. O. B.
Clinton — • Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.63@1.7.)
No. 4 egg..... . 2.12 1.35
Nut . 2.12 1.35
Mine run . 1.87 1.10
Screenings . 1.37@1.42 .60@ .65
The coke market has firmed up somewhat with¬
in the last week for the furnace and foundry
grades. There is something of a shortage of
western cokes and the eastern operators may soon
find a market here again. Domestic sizes have
not been so strong. The prices up to Thurs¬
day were :
F. O. B.
Coke — Chicago.
Connellsville . $4.85@5.00
By-product, foundry . 4.90@6.10
By-product, egg and stove . 4.75
By-product, nut . 4.75
Gas house . 3.85@4.00
The Berwind coal dock at Duluth has just set
another unloading record by unloading the
steamer J. H. Sheadle of 10,350 tons of bitumi¬
nous coal from the time she tied up at the dock,
1 p. m., and when she cast loose at 9 that
night.
No. 13]
THE BLACK DIAMOND
255
Pittsburgh Trade.
Domestic Buyers Are Beginning to Cover
Their Needs, but Halt Over
the Firm Prices.
Office of The Black Diamond,
Oliver Building,
Pittsburgh, September 23.
Unquestionably the market is dominated by the
war. It dominates the steel and iron trade, and
on these hinges almost all other lines and par¬
ticularly coal and coke. With continued heavy
Imying of war materials, however, domestic buy¬
ers are beginning to awake to their own inter¬
ests, and requirements, but are at the same time
hesitating, owing to firmness, and advancing prices.
The coal trade firmly believe that unless domes¬
tic consumers protect themselves very soon they
will have overstayed opportunity. The heavy de¬
mand that the large steel and iron trade are ex¬
acting now, on their coal contracts is keeping
many of the larger mine operators very busy ship¬
ping their requirements, and holdin.g prices very
firm, the tendency being toward advances — all
along. Several large producers stated today that
they had no coal for sale at present figures, and
while no large tonna.ges are being talked of — in
the way of new business, the season is near when
domestic trade must be supplied, and producers
who are busy on contract deliveries seem de¬
termined to get higher figures for new business.
This condition benefits the smaller operator, and
there are general indications all along the line of
steady and sure improvement.
A number of railroads are huyin.g and stocking
coal, even in instances where it is known that
they have sufficient coal to carry them until the
expiration of contracts holding until April, 191G.
This step, it is stated, is being taken to prepare
for the emergency of labor troubles, including
strikes, scarcity and the uncertainty of war de¬
velopments in the future.
With increasing foreign demand the interior
producers will be called upon to meet domestic
trade to a lar.ger extent, and while this partic¬
ular locality, owing to the very general use of
natural gas, does not respond so quickly to the
appeal for coal that the approach of cooler
weather brings, yet the retail consumption is a
factor even here, and is now entering the market
in a limited way, and it is evident that stocks in
consumers hands are low. No decided price ad¬
vances have been made in a general way — but it
is known that schedules are in preparation for
1916, and that action on the same is more .gen¬
erally uniform than has been the rule for some
time. Today the market might be quoted as
below :
Pittsburgh District —
Slack .
Mine run .
screened .
5/4 screened . .
West Virginia District —
Slack .
Mine run . .
44 screened .
5/4 screened .
F. O. B. Mine.
. . .5i50.75@ .80
. . . 1.10@1.15
... 1.20 @1.25
... 1.30@1.40
.50
1.00
1.10
1.20
Through West Virginia the car shortage has be¬
come quite acute and is also felt to an alarming
extent in the Pittsburgh region as well. Increased
mine activity is calling for more and more lalior
and the supply is becoming exhausted rapidly, and
this feature alone creates some uneasiness in the
matter of quick delivery.
At the Annabelle mines of the Four States Foal
Company in West Virginia, due to the increased
business — operations will be resumed today, giv¬
ing employment to over l,ono men and this is by
order of the court, and operations are to con¬
tinue from now on.
The receivers of the Meadowlands Coal Com¬
pany, Pittsburgh, have placed the output of their
mines in the hands of the Cleveland & Western
Coal Company as selling agents, and the mines
are again operating in full.
This company is also handling the product of
the IMontour & Lake Erie Coal Company mines,
which are now working to capacity. These mines
are located in Alle.gheny county, and from the
Westmoreland, Green and Fayette county districts
the report comes that they have sold all the coal
that they can produce from now until Christmas,
and are not taking orders for delivery before
that time.
Forward buying while not heavy, is becoming
more active, and considerable inquiry is being
made by various interests, some of these, like the
railroads apparently anticipating future difficulty
owing to the war complications, and rumored
labor difficulties.
At the plants of the Westiaghouse interests at
East Pittsburgh, trouble has arisen in the machin¬
ists organization, and the company has been noti¬
fied of their demand for the reinstating of dis¬
charged employes, for an eight-hour working day
and an advance of 20 per cent in wa.ges, with time
and a half for over time. The company have
been given until Thursday night, the 23rd, to
answer — before the union takes further action.
These plants are rushed on war munitions, and
the outcome is looked forward to with anxiety, no
one knows how the company will meet the pro¬
positions set forth.
In the coke trade nothing of a new character
has appeared on the surface of the past week.
The production is approaching normal, and a
strong undercurrent is felt that bears oiit the as¬
sertion of optimists of the long dull season, ap¬
parently now a thing of the past that 1916 coke
would command much higher prices. The pig
iron market and the foundry situation, both bear
this out, and while advanced prices on regular
and sliding scale basis, are now being held to for
the last quarter, still higher figures are quoted for
19] 6, and it seems to be a safe bet that they will
be maintained, as no forward deliveries are being
considered at today’s quotations.
The market is quoted as below :
Spot furnace . $1.60@1.75
Furnace to January 1 . 1,75@2.00
Prompt foundry . 2.30@2.fio
Contract foundry . 2.40@2.60
Personal and News Items.
At the United States receiver’s sale, George
C. Watt of Braddock, Pa., purchased the works of
the Dexter Coal Company at Brilliant, Ohio, for
the sum of $9,100.
L. W. Brown, superintendent of the Richland
Coal Company of South Warwood, West Va., has
left for Bolivia, South America, where he will
open a tin mine with West Virginia capitalists.
Mr. Brown starts on a journey which will cover
6,000 miles.
AI. M. Greist, sales manager Carnegie Coal
Company is again at the company’s office in the
Park building, after a vacation of some weeks.
The Union Collieries Company of Pittsburgh
has filed a notice at Harrisburg, of an increase
in debt to $1,000,000.
The H. C. Frick Coke Company has been
awarded a gold medal by the superior jury of the
Panama-Pacific International Exposition for its
splendid exhibit as a subsidiary of the United
States Steel Corporation. The gold medal rep¬
resents a marking of from 95 to 100, and ranks
second to the .grand prize, of which there is but
one in each class.
A spirited meeting of the Central West Virginia
Coal Operators’ Association was held at Fair¬
mont, West Va. last week. The operators are or¬
ganizing against the proposed increase in freight
rates from West Vir.ginia to western markets
and to the lakes. A committee was appointed to
gather information relative to the proposed
^change. This information will be the basis for a
protest to be made before the Interstate Com¬
merce Commission. *
Work has actually begun on a new sixty-mile
extension of the Virginian railroad from Mullen
to Mann, West Va., piercing the state’s richest
coal territory in the wdnds of Wyoming county.
The line for the first time will connect the Vir-
.ginian with the main Guyan river, the ultimate
plan being an extension to Huntington to give
a lake as well as a tidewater market. The exten¬
sion connects the Virginian also with the Logan
county field. It is said fifty miles of the extension
will pass drift mines.
Cleveland Trade.
Clev'ei.and Ohio, .September 2^.— (Special Cor¬
respondence.) — There has been practically no
change in the lake shipping business for the past
week. Coal is coming forward from the mines
at about the same rate as usual. However, it is
said that there is some scarcity in vessel ton¬
nage and that boats, in their hurry for grain
business, are in many instances going up light.
It has been predicted by the local press that the
coal rates will have to be pushed up late in the
season, if shippers complete their orders. Usually
there is a rush at the close, but whether this
will be true this season remains to be seen. Some
of the large shippers do not seem troubled in the
least over anything that may take place, so it
is possible that the business is in such a shape
that they will not be bothered by lack of ton¬
nage during the later weeks.
While there has been no noticeable change in
the steam business, the amount of small sizes
in the market has not been over-plentiful. In
fact, early this week slack was in better demand
than usual and those who had a surplus were
not in a hurry to dispose of it at the prevailing
prices, which were considered very fair at that.
Prices have been firm, with little tendency to bid
for spot business, even in good-sized orders. The
fact that the supply has not been large, however,
is the only thing that has maintained the prices,
since the volume of business has been nothing
like what might reasonably have been expected
for the past several weeks.
There has been a very light demand for No.
8 vein coal in any of the sizes except slack.
The latter has held its own with other grades
on the market. Prices quoted are as follows:
Three-quarters
Mine run . . . .
Slack .
F. O. n. F. O. B.
Mines. Cleveland.
$0.90 .$1.80
.80 1.70
.70 1.60
In Pittsburgh coals no lump or run of mine
sizes have been offered on the local market dur¬
ing the past week. Slack, however, has been
in fair demand and the price has remained firm.
F. O. B. F. O. B.
Mines. Cleveland.
Slack . $0.65(» .70 $1.65@1.70
Owing to the cool weather Monday the
demand for Pocahontas coal showed consider¬
able strength and inquiries were plentiful from
both the local and surrounding markets.
Lump
Egg .
Run of mine
F. O. B. F. O. B.
Mines. Cleveland.
$2.25 $3.70
2.25 3.70
1.40 2.85
The same might be said of Massilon coal which
is largely used for domestic purposes.
F. O. B. F. O. B.
Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 2. .50 3.20
Slack . .80 1.50
Goshen lump was not especially active this
past week, but there was some demand for slack
at $1.50 on track here, the freight rate being
TO cents.
It is possible that Cambridge coal moved in
larger quantities the past week than usual and
the prices held fairly firm.
Three-quarters
Run of mine.
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$0.90 $1.S0
.80 1.70
.70 1.60
Considerable P'airmont coal is said to be going
to the lakes, but aside from a small quantity of
slack, not much of it was handled in this mar¬
ket the past week. Slack was quoted from $1.65
to $1.70 on track here. The rate to Cleveland
is .$1.15 and to the lake ninety cents.
Quite a bit of Kentucky coal is being handled
through the jobbing offices here and during the
past week even a larger tonnage than usual was
taken. The average price for 4-inch block for
the week has been around $3.10.
All coals for domestic purposes, including the
smokeless and anthracite brands, were in very
good demand early in the week, as a result of
the cold wave that swept the country Monday. It
is said that dealers in the small towns of north¬
ern Ohio have smaller stocks than usual and
that there is some danger of their being unable
to take care of their needs later on, unless there
is a change shortly.
Cleveland News Notes.
George T. Odbert, of the Odbert Coal Com¬
pany, Detroit, was in the city early in the week.
Fred Mulholland of the Clyde Coal Company,
Pittsburgh, called on the coal men here a few
days ago.
C. L. Ayers, who has been confined to his home
with an abscess in the nose, was able to be at
his office a portion of the time this week.
John K. Barker, manager of the coal depart¬
ment of G. P. Bassett, Jr., Pittsburgh, was a
business visitor here the latter part of last
week.
Because of the insistent call for the reservists
I)y the European countries, many miners in this
state and West Virginia have returned to their
native lands to engage in the war. Operators
say that, so far, this has made no great differ¬
ence, but that it will probably be noticed when
there is a special demand for coal.
C. T. Kuhn, well known in the retail coal
trade in Allentown, Pa., has acquired the coal
plant of the Kern Coal & Ice Company of
that city, and will operate it under his own
name in future.
256
THE BLACK DIAMOND
[September 25
Cincinnati Trade.
Cincinnati, O., September 23. — (Special Cor¬
respondence.) — The cold wave of this week helped
business. The result was the cancelling of can¬
cellations of orders and the placing of orders for
domestic, together with less disposition to cpies-
tion prices. These remarks are especially directed
toward the splint market.
Splint lump is disposed of as fast as cars can
be obtained to deliver it. A few West Virginia
mines are out of the market and will not take
orders for delivery earlier than October 15. Some
of the West Virginia operations, especially the
large ones, report that prices are much firmer
and stronger and that some grades of product
are practically receiving a premium on the gen¬
eral market. E.gg coal in the West Virginia field
is right up with lump in demand and price and
the washed product is receiving a premium.
This better position of domestic prepared sizes
has released a large supply of steam coal which
has been drifting into the market. Had this
taken place thirty days ago it would have broken
the market. As it is, it has been absorbed at
slowly bettering prices. About fifty cars floated
into the market here on top of a lar.ge movement
of consigned and delivery coal early this week
and for a short time dealers were fearful that it
would cause trouble. In fact, the free coal was
absorbed by the dealers themselves in one and
two-car lots and instead of hurting the market
it really helped out delivery.
Prices are in fair shape in the splint, some of
the quotations being as follows : Logan county
product, 4-inch lump, $1.60; 2-inch lump, $1.25 to
$1.35; run of mine, ninety cents to $1; nut and
slack, fifty to sixty cents; egg, $1. But little spot
is offered in this .grade. In better and more
widely known products. Main Island Creek lump
commands $1.75 ; other products in proportion,
with nut and slack out of the market. Cinderella
lump brings $1.90 to $2 ; egg and stove, $1.40 to
$1.50 ; run of mine, ninety cents to $1 ; nut and
slack, seventy-five to eighty cents, with very little
disposition to take less than $1 for mine ritn.
Specimens of Kentucky quotations are: Block,
largely sold up for nearly two months, October
lump quoted at $1.80 and thereabout: run of
mine not made in general; washed nut, $1.50;
nut and slack around seventy-five cents, with a
differential of about five cents a ton both ways,
for sli.ghtly lower and for the better grades. Mil¬
kers Creek grades in both fields, Kentucky and
West Virginia, are from $2.10 in Kentucky to
$2.20 in West Virginia.
The lake movement is gaining momentum again,
several local operations finishin.g cargoes this
week for up-lake points.
The smokeless situation is unchanged except
for a better demand for domestic in this central
district which has been very dilatory in that re¬
spect in the past six months. The tidewater
movement is still strong, only being halted during
the negotiations for war funds by the Allies in
New York.
Coal Trade News.
Calvin E. Holmes of the Bawley-Darst Coal
Company, Knoxville, Tenn., and O. Smith, the
Richmond. Va., representative of the company,
were in Cincinnati this week looking over the
territory here.
R. H. England, general manager of the Blue
Creek Coal & Land Company, with headquarters
in Charleston, W. Va., paid a visit to friends for
a few hours as he passed through Cincinnati en-
route to New York the latter part of last week.
The C. & O. officials in this city have given
out the figures of the July coal traffic complete.
They show that during the month the tidewater
traffic consisted of 2,055,975 tons of both bitu¬
minous and anthracite coal, against 1,801,229 in
July, 1914. It also showed that the coke traffic
durin.g the period was only 21,930 tons, against
25,0,33 in July, 1914.
Among the visitors among coal men in this city
this week were C. D. Caldwell of Chicago, rep¬
resenting the By-Products Coke Company; John
McClanahan of the Milburn Coal & Coke Com¬
pany, Milburn, W. Va. ; G. Harry Caperton of tbe
New River Coal Company; Matt Puckett of tbe
Cabin Creek Consolidated Coal Company., and
1. R. Tbomas of the Carbon ITiel Company.
C. 1). Weeks of the Milwaukee Coke & Gas
Company, and A. C. Carver of Charleston, coal
inspector for the company, were in Cincinnati the
latter part of last week, together with W. P.
Schaufer of the M. A. PTanna Company, Cleve¬
land, Ohio. Mr. Weeks and Mr, Carver came to
discuss company business and the latter paid a
brief visit to his brother, W. V'. Carver of Percy
Heilner & Son.
Among the chan.ges noted this week in the
trade is that of V. G. Miller of Columbus, who
was formerly connected with the Royal Collieries
Company of Toledo, Ohio. Mr. Miller started out
d'uesday for the Webb Fuel Company of this city,
and will cover northern Ohio and northeast In¬
diana for the latter company. E. E. Keller, form¬
erly with the Webb Fuel Company, has become
connected with the Bell Coal & Mining Company
of this city also.
To the multiplying coal companies in the rapidly
developing Kentucky districts were added this
week two more in Bell county. They are the
Creech Coal Company, with a capital stock of
$200,000 and the Banner Fork Coal Company, with
a capital of $100,000. Both will operate on VVallins
Creek. The Creech Coal Company is not yet fully
organized, but Robert Creech of Pineville, will
be president and manager and the company is
composed entirely of Pineville men. W. J. Cun¬
ningham, also of Pineville, is president of the
Vanner Fork Coal Company, and L. P. Johnson
of Harlan, is secretary and treasurer. This com¬
pany has already begun development.
H. Coolid.ge, general sales manager of the
Imperial Coal Sales Company of this city, an in¬
corporation for the purpose of disposing of the
production of the Imperial Coal Company of
Burnwell, Vv. Va.. has resigned his connection
with the company, effective November 1. An op¬
portunity to dispose of the entire production of
the company to a sales agency came about and
the sale was made at a good figure. The Cin¬
cinnati company will look after contracts and
orders already booked, Mr. Coolidge has several
opportunities to choose from, but has not com¬
mitted himself. His home is in Dayton, Ohio. He
is well-known throughout this territory and the
central west, and would be a welcome addition to
the forces of any West Virginia corporation.
Cincinnati operators producing coal in West
Virginia are very much exercised over the at¬
tempt of the Ohio Public Utilities Commission,
the railroads of Ohio territory and the operators
of Ohio territory, to add a further handicap in
the market on West Virginia coal in favor of
Ohio coal. The first matter of grievance is the
paying of a differential of twenty-five cents per
ton to the freight tariff of the roads operating
in Ohio, and now comes an attempt to place a
further differential of fifteen cents to that, mak¬
ing a full handicap of forty cents per ton on a
Toledo basis. This, the West Vir.ginians claim,
is a prohibitive tariff and an unfair advantage to
Ohio coals and they are organizing a fight against
it. Committees have been named to carry on the
fight until a decision is reached. The West Vir¬
ginia operators are further indi.gnant that the
governor of Ohio and the state administration
have interfered and are urging Ohioans to buy
Ohio coal in preference to any other, the governor
having printed on state stationery, the legend,
“Buy Ohio Coal,” at state expense usin.g funds
contributed by the taxation of the West Virginia
mines in corporation tax and also the personal
ta.x of the operators themselves living in Ohio,
against their business. The result is indignation
and disgust with a disposition on the part of some
to leave the state.
Birmingham Trade.
Birminch.am, Ala., September 23. — -(Special
Correspondence.) — The retail domestic coal trade
shows a better tone. The sales-agents report
business only fair, with moderate tonnage being
sold.
Steam coal shows only fair business with some
good tonnage going towards gulf ports. Rail¬
roads are taking only moderate tonnage.' Coking
coal is making the best showing. As more
furnaces are now in blast than for three years
and as the demand for coke is large, there is
a large consumption of coking coal. As a whole,
the trade on all coals is a decided improvement
over six months ago. More men are now at
work in the mines than has been the case for
more than a year. With indications as they are
at present, the last three months of the year
.should be productive of good results for tbe
coal mining industry.
car sliortage is apprehended in the coal
fields of Alabama. Walter Moore, of the Em¬
pire Coal Company and other coal mining cor¬
porations, Monday morning expressed the belief
that from now on the railroads would be called
upon to furnish more and more cars, and a
shortage is expected. Mr. Moore said:
"The coal business is picking up. There is
no doubt of it. Were conditions the same as
they have been for some time in the past it would
place a burden on many of us that could not
lie borne. We are very much encouraged over
the prospects and the actual improvement in the
trade.
“As to the Empire Coal Company shipping
coal down the Warrior river, this has been repeated
time and time again. We expect to get into
that trade, at the proper time. No special effort
is being made to rush the new transportation
facilities.”
“The retail business has begun to pick up tre¬
mendously,” said M. G. Guggenheim. “In the
last few weeks there has been a great improve¬
ment, even though cool weather has not come.
I believe this is due to the large number of
bouses being rented. The householders are lay¬
ing in their supplies of coal now, and I believe
there will be a big increase shown in the busi¬
ness this year.”
September Prices.
F. O. B. F. O. B.
Bibb County Domestic Coal — Mines. Birmingham.
P.eil Ash Cahaba lump . $2.75 $3.05
Red -Ash Cahaba lump . 2.50 2.80
Red Ash steam size . 1.20@1.35 Frt. rate 30c
Jefferson County —
Fancy steam Pratt . 1.76 2.00
Run of mine Pratt . 1.20@1.25 1.45@1.60
Mary Lee lump . 1.40@1.50 1.80@1.90
Black Creek —
Fancy steam lump . 1.75 2.05
Washed nut . 1.75 2.05
Washed steam . 1.33@1.60 Frt. rate 30c
Mine run . 1,35@1.40 Frt. rate 30c
Jefferson Seam Steam Coal —
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic-
Carbon Hill lump . 1.70 2.00
Carbon Hill egg . 1.60 2.00
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
Dump . 1.85 2.25
Egg . . 1.75 2.15
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 2.75 3.00
Cahaba No. 2 lump . 2.50 2.80
Montevallo domestic prices ranging from $2.75 to $3.00.
Blacksmith coal, washed and screened, per ton, $2 to
$2.25 at mines, with different rates to various points.
The legislature of the state has passed a bill
authorizing the expenditure of $250,000 for the
equipping of the State University coal lands with
mining machinery, the purpose of which is to
work the state convicts in mining coal.
Omaha Trade.
Omaha, Nebr., September 23. — (Special Cor¬
respondence.) — The demand for coal seems to
be increasing quite materially on account of the
continued cool weather and also on account of the
advance in freight rates on soft coal into this ter¬
ritory effective September 30.
There seems to be no change in prices, the fol¬
lowing prevailing :
Southern Kansas —
Mines
$1 85
Omaha
1 35
Franklin County —
Lump .
. 1.60(5)1.75
4.00(5)4.15
Egg .
. 1.60(5 1 75
4.0n-.^4.15
Nut .
. 1.60(@1.75
4.00@4.15
Williamson County—
Lump .
. 1.45@1.6n
3.85@4.00
Egg .
. 1.45(5)1.60
3.85@4.00
Rock Springs —
Lump .
2.15
5.85
Nut .
1.60
5.35
Arkansas Anthracite —
Lump .
3.70
6.60
Broken sizes .
3.95
6.85
Routt County, Colo. —
Lump .
3.00
6.75
Nut .
2.25
6.00
Pea .
1.25
5.00
Walsenburg District, Colo. —
Lump .
3.00
6.75
Nut .
2.25
6.00
Pea .
1.25
5.00
John K. Kerr has filed incorporation papers to
carry on a business in coal, lumber and oil, with
capital stock of $10,000. Directors are John K.
and L. E. Kerr and Mark W. Comstock. The
office is at 39 Erie street. Mr. Kerr has long
been connected with the Buffalo coal trade, hav¬
ing formerly had an office in the Ellicott Square
building. He is president and general manager
of the new company.
The coal yards of Emer.son & Morgan at Cen¬
tral avenue and Gough street, Baltimore, have
been sold to the metal dealing firm of H. Klaff &
Co. By October 15, the coal firm will be located in
splendid new yards near Jefferson place and
Twenty-third street, in which neighborhood the
Baltimore and Ohio Railroad is establishing ex¬
tensive coal yards and chute facilities.
No. 13]
THE BLACK DIAMOND
257
Louisville Market.
L.oujsvjli.e. Ky., September — (Sl’cciul Cor¬
respondence.) — Chilly autumn weather has arrived
and the necessity of lighting tires has stimulated
the movement of domestic coal, which shows a
tendency toward firmer and advancing prices, and
has also increased the production of screenings
which are in over plentiful supply. However,
the market, as a whole, offers great encourage¬
ment for discouraged coal operators who are
looking forward to excellent business after the
first of October.
Wholesale prices on domestic coal are- very
nearly normal in this section of this time of year,
quotations for October delivery ranging from
$1.75 to $2.25 a ton on block coal with the cus¬
tomary differentials governing prices of egg and
lump sizes. High-grade nut and slack is currently
selling at from fifty to seventy cents a ton for
spot delivery, and the contract basis is ranging
around 60 cents a ton. There is little demand
for steam run of mines or any steam sizes except
nut and slack, and the difficulty of disposing of
this resulting steam coal is apt to continue unless
car shortage becomes more acute, or consumption
radically expands.
Increasing traffic on the railroads has caused the
Southern Railroad to call on its operators in the
Middlesboro section for the maximum tonnage
provided under their contract, but as before noted,
this maximum was decreased during the present
year and does not afford these operators full time
employment. The shortage of cars on the South¬
ern Railroad and also on the Illinois Central has
become acute, while Louisville & Nashville oper¬
ators are losing an average of one day per week
on account of lack of cars, though some mines
report idleness of two days during the past week.
Transportation officials of roads serving the
Kentucky territory are now looking jealously
after the return of every coal car, and the work
of repairing shop cars is actively prosecuted.
General industrial activity seems to be on a satis¬
factory basis, as for the past three or four weeks,
and altogether the outlook is by no means dis¬
couraging.
Local retail dealers, however, are still in the
dumps with prices still prevailing, which afford
no possible margin of profit, and no immediate
outlook for advancing same. The local dealers
continue putting out a considerable volume of re¬
tail coal at twenty-five to fifty cents a ton less
than the average prices for this time of year, and
have apparently grown tired of fruitless efforts to
remedy their condition. Eastern Kentucky ship¬
pers are interested in the announcement that the
West Virginia roads have been authorized by the
Interstate Commerce Commission to advance
rates to Ohio, Michigan and Indiana territory-
fifteen cents a ton, but as yet the Louisville &
Nashville has not indicated whether or not it
would participate in this advance, providing the
advance finally .goes through. The impression
seems to prevail that such an advance would not
be disadvantageous to the sale of eastern Ken¬
tucky domestic coal, but might curtail their mar¬
ket for steam sizes in certain localities to the
great advantage of the Ohio producers.
Denver Trade.
Denver, September 23. — {Special Correspond¬
ence.) — John D. Rockefeller, Jr., is in Colorado
this week, investigating industrial conditions and
inspecting coal properties of the Colorado Fuel
& Iron Company. His visit has attracted wide¬
spread interest.
Mr. Rockefeller is endeavoring to secure first¬
hand information, and he is succeeding remark¬
ably well in his efforts to bring about a friendly
feeling between himself and his company and
their employes. There are those who can see
no further than the sensational side and spectac¬
ular features of his investigation. There is also
another element seeking to belittle his evident
honest efforts — a class or clique which insists
that Rockefeller’s coming was known in advance
and that pre-arranged program of what he may
see and what he may be told is being carried out
to the letter.
Mr. Rockefeller got in Trinidad Monday and
immediately got busy. He began with an inspec¬
tion of the coal camp at Berwind. His investiga¬
tion there was thorough. He visited the miners,
their wives and children in their homes, plying
them with questions covering wages, cost of
living, quality of food, condition of their houses
and everything pertaining to their welfare. The
company stores received his attention and he
visited the teacher and pupils in their school.
To test the quality of their food and to become
better acquainted with the men he ate with them
at their boarding house.
He followed the same tactics at Valdez on
Tuesday, placing himself on a common level with
the miners and telling them to be frank and o()en
with him and that he was seeking to better their
condition wherever possil)le. He inspected the
I'rederick mine for fully three hours and, wear¬
ing overalls, a miner’s hat and lamp, entered the
workings with the men. He watched them at
their work and finally asked for a pick for him¬
self. Then he dug coal for fully twenty minutes
and left the mine dirty and grimy, in striking
contrast to the immaculately clean Mr. Rocke¬
feller of New York.
After leaving the mine he visited about twenty
houses in the village and afterward ate lunch
with his party at the camp boarding house. He
left there during the afternoon for Segundo,
where he was to continue his personal investiga¬
tions.
Mr. Rockefeller has a genius for making
friends, and has shown himself to be wonder¬
fully familiar with every phase of coal mining.
He is certainly gaining the friendship of his
men and securing the information he sought.
His visit should be productive of great good.
The Denver Markets.
Denver, September 2'3. — {Special Correspond¬
ence.) — Market conditions here this week are still
improving and some gains are noted in over
the better showing reported last week. Weather
changes and the general disposition of consumers
to loosen up in their buying are the main in¬
centive for larger sales and an increased ton¬
nage.
The lignite situation is getting stronger almost
daily. Threshing is now general in this section
and the sugar factory season with its heavy
demands will soon begin. There is also consider¬
able storing of lignite. Storing of anthracite
so far this season is said to be heavier than for
several years for a similar period.
Bituminous tonnage for the state will run almost
ten per cent above that of last week. Trinidad
and Walsenburg both report a larger output, and
Routt county operators are busy on a stronger
and steadily increasing demand.
Prices for all grades of slack are steady to
stronger, and lower temperatures, especially
colder nights, has maintained an even balance
between the supply and the demand. Even with
the sudden increased lump production of lignite,
there is no surplus.
Prices for lignite coal f. o. b. mines are as
follows : Denver delivery, lump, $2.35 to $2.65 ;
mine run, $1.50 to $1.65; slack, $1.05 to $1.25.
Points outside of Denver, lump, $2.50 ; mine run,
$1.55 to $1.65; slack, $1.65.
Duluth Trade.
Duluth, ^Iinn., September 23. — {Special Cor¬
respondence.) — Coal shipments from the head
of the lakes are keeping up in about the same
proportion that they have been for about two
months, the time of year considered, and com-
l)are well with the shipping gain of last year.
For instance during August of 1914, there was
a gain in shipments over July of 5,250 cars of
all kinds of coal, and during the same month
this year, there was a gain of 5,220 cars.
During the past month, 18,075 cars of all kinds
of coal were shipped from this point for dis¬
tribution through the northwest, and in August,
1914, 20,349 cars were shipped out. This makes
car shipments to the end of August for this
year, compared to shipments during the similar
period last year, as follows:
No. Cars.
1014 . 141,379
1915 . 128,563
Deficit, 1915 . 12,816
b'iguring thirty-two tons to a car, the ship¬
ments in tons of the two years were :
Tons.
toil . 4,.534,128
1915 . 4,007,616
.Shortage, 1915 . 526,512
Coal companies as a wliole report that while
the demand is growing from almost every part
of the northwest for coal supplies, and that orders
are coming in much better than they did last
year, the demand from St. Paul and Minneapolis
is inexplicably light. Few orders have been re¬
ceived and there is little inquiry. Just why this
condition exists, the coal men do not understand
for the Twin City people cannot be loaded up.
Country business is much better than it was
a week ago, and infinitely better than a month
ago. It is predicted that the gain of August over
July in shipments of all kinds of coal from the
liead of the lakes will be outclassed by the
shipments in .September over .August. Much
more room is being made at the docks here,
but coal cargoes arc coming slowly. Some of
the big docks have not had a ship tied up to
them for three weeks.
Railroads are taking coal more freely than
at any other time this season. The past week
has seen a lot of the stuff taken for their
use in moving the heavy trains of grain that
are coming out of the country to the terminal
elevators. But as yet the grain receipts have
been a disappointment, being nowhere as large
as was expected by this time. They register only
about the same as last year at this time. How¬
ever a change in that regard is expected before
the week is out, and when the rolling stock
really gets into action, more coal than formerly
will be in demand.
St. Louis Trade.
St. Louis, Mo., September 23. — {Special Cor¬
respondence.) — Buying is quite active in a whole¬
sale way, though dealers state that business is
bolding off and that they expect a big rush later.
If the dealers’ opinion is justified that “they are
only nibbling” now we will have one of those old-
fashioned Octobers and some prices. Business is
much better than it was this time last year and
prices much better. Domestic prices are as high
and firmer and steam sizes are much higher than
last year. It is felt in some quarters that screen¬
ings have now about reached their bottom point
(this is generally reached the latter part of Sep¬
tember) and they are now worth from 40 to 55
cents, according to the grade, whereas this time
last year they were only worth from 10 to 25
cents.
Standard coal is moving well and the mines
of the district are now running about three-quar¬
ters time, which is very good for this district.
Current prices on standard coal are as follows:
Standard Coal
6-inch lump . . .
6x3-inch egg . .
2-inch lump . . .
Steam egg ....
No. 1 nut .
No. 2 nut .
Mine run .
Screenings . . . .
F. 0. B.
F. O. B.
Mine.
St. Louis.
. .$1.20
$1.77 14
. . 1.10
1.6714
.. 1.00
1.5714
. . .90
1.4714
. . 1.00
1.5714
. . .80
1.3714
. . .85
1.4214
. . .40
.97 -A
.Staunton and Mt. Olive mines are doing well
and are finding a good and ready market both
here and to the north.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.40 $1.97}4
2-inch lump . 1.20 1.7714
Screenings . 40 .97}4
Williamson county mines are all behind with
orders and are finding a very wide market for
their coal. It is moving readily in the far south
as far as Louisiana and also in the west and the
north. The Williamson county operators seem
to have awakened and are getting up to date.
They are all preparing their coal much better and
using better salesmanship and advertising. They
have increased their relative market price quite
a bit until there is very little difference, if any,
between their prices and Franklin county. They
seem to be coming back into their own.
F. O. B. F. O. B.
Mine. .St. Louis.
0-inch lump or egg . 1.60@1.75 2.2214 @2.4714
3x2-inch nut . 1.50@1.75 2.3214 @2.4714
Screenings . .50 1.2214
Franklin county operators have more business
than they can handle on lump. Other domestic
sizes are moving abreast of production, but there
is no accumulation of egg or No. 1 nut orders,
consequently operators are pushing for business
somewhat on these sizes and dodging lump or¬
ders. The higher priced steam sizes, such as Nos.
2, 3 and 4, are dragging.
F. O. B.
Mine
6-inch lump, egg or nut . $1.75
No. 2 stove . 1.40
Screenings . 60
F. O. B.
St. Louis.
$2.4714
2.1214
1.3214
Anthracite is in good demand on all sizes with
chestnut a little short.
Anthracite — F. O. B. St. Louis.
Chestnut . $7.55
Stove or egg . 7.30
('iiate . 7.05
Smokeless — V. O. R. F. O. R.^
Mine St. Louis.
TMimp or egg . $2.25 $4.75
Gas House Coke — F. G. R. St. Louis.
Gas house coke . $4.25
Ry-product coke (all sizes) . 4.50
The prices on Illinois soft coal f. o, b. East
St. Louis, Madison, Venice or Granite City, Ill.,
are 2514 cents lower than the above quoted St.
Lotiis prices.
258
THE BEACK DIAMOND
[September 25
New York Trade.
Delayed Mild Weather Promises Stim¬
ulus to Anthracite — Bitumi¬
nous Stronger.
Office of The Black Diamond,
New York, September 23.
At this writing the anthracite market has lieen
slight!}’ improved hy the milder weather that put
in appearance on Tuesday. Up to that time the
weather had been oppressively hot for this season
of the year, and consequently the fall trade in
anthracite had been delayed hy fully two weeks.
Reports received hy the selling agencies on
Wednesday indicate a better demand for coal
from many points, hut the market is still lacking
the snap that is usually manifest at this season of
the year.
In the west a great deal of anthracite coal is
needed, and the companies are urging customers
in that territory to take larger shipments now
while transportation conditions are easy. In the
east it is apparently impossible to interest con¬
sumers in taking on anthracite unless they have
an actual need for it at the time. This market
responds very closely to the weather and if it is
hot, as was the case for about two weeks, sales¬
men find their customers very indifferent.
The all-rail trade has been very quiet, and this
has been true especially in certain parts of New
En.gland. In New York state there is a better
demand in some sections, but the tonnages mov¬
ing are below normal in most instances. The
tidewater trade has been sluggish, and at New
York harbor ports several of the ports have been
tied up by strikes. Fortunately there was no pres¬
sure to get coal loaded, and by the end of the
present week it is hoped that these labor troubles
will be smoothed over, and that there will be no
further interruption. Most of the New York
harbor ports are plentifully supplied with domes¬
tic sizes of coal, with stove being the most fav¬
ored size by buyers. Individuals coals are not as
pressing as formerly and prices are becomin.g
stiffer each week. There are some who predict
that October, by reason of the increased de¬
mand for coal, will find the full winter circular in
full effect in most every direction. It is pointed
out that the anthracite roads are going to find it
difficult to move coal as easily from now on as
they have been doing throughout the summer.
Several of these roads are what are known as
trunk lines, forming important connections be¬
tween the western lines and tidewater, and that a
great deal of the equipment and locomotive power
will be utilized from now on in movin.g grain
and other products that come to tidewater for
trans-shipment. The important source of coal
carrying roads of the east are already beginning
to put shippers on a percentage car basis, and as
the anthracite roads have not been purchasing any
apijreciable amount of new equipment during the
past several years, it is argued that they too may
find coal cars scarce before very lon.g, unless con¬
necting lines that take coal for all-rail distribution
show unusual promptness in returning empty cars.
Therefore, there are some who predict that the
anthracite companies are not going to be able dur¬
ing the remaining months of the year to make up
for the shortage of production that so far this
year amounts to about 2,000,000 tons. From Octo¬
ber on it is predicted that if they mine and dis¬
tribute 0,225,000 tons of coal per month, which
will be what is usually considered maximum capa¬
city, they will be doin.g well.
The steam sizes are not materially changed in
price since last week. Most of the local ports are
plentifully supplied with inferior coals, with the
high grades in very scant supply. Most of the
latter are taken upon contracts, which at this time
of the year are calling for maximum shipments.
New York prices:
Upper I.ower
Ports. Ports.
Broken . $5.10 $5.00
Egg . .5.35 5.25
Stove . 5.35 5.25
Chestnut . 5.00 5.50
Pea . 3.55 3.45
Special grades of Red Ash and other high grade
coals at the lower ports sell at twenty-five to
fifty cents per ton over above fi.gures.
Spot prices in individual coals at lower ports
are about as follows :
Egg . $4.90 and up
Stove . 5.00 and up
Nut . 5.00 and up
Pea . 3.25 and up
Buck . 2.10 and up
Rice . and up
Barley . I- ■ ■ ■ 1'50 and up
The Bituminous Situation.
The eastern bituminous situation shows further
improvement this week in that a great many pro¬
ducers are absolutely refusing to consider new
contracts or to make shop shipments. Not that
they do not want this extra business, but they
find it impossible with labor tightening, and car
supply already becoming short, to take on further
commitments. A survey of the Pennsylvania pro¬
ducing fields finds that labor is becoming shorter
each week, a .great many miners being attracted to
the steel and other industries that are promising
steady employment and at better wages than the
miner feels that he can make around the mines.
In Somerset county practically all of the mines
are working as full as their supply of labor and
cars will permit. This condition is true also of
Cambria county, while Clearfield and Indiana
counties are showing up much better than form¬
erly. Some of the large operators of the latter
counties have not contracted for any business since
the first of August. They will be satisfied from
this time on to take care of their contracts, as they
appreciate the fact that labor is growin.g very
scarce and is too uncertain, and furthermore
that the railroads are more likely to have a short¬
age of cars from now on than to have a surplus.
They feel that should they have any surplus coal
at any time, the spot market will offer an attract¬
ive outlet.
In the export market there is a big call for
American coal, with numerous negotiations for
large tonnage being held up by the inability of
the parties conductin.g the negotiations to make
satisfactory terms for transportation. Last week
exports from Baltimore fell off radically due to
the fact that vessels were slow in reporting for
loading. Hampton Roads ’W'as about up to nor¬
mal. The bunker demand is growing at practically
all of the ports. Hampton Roads supplies of coal
are just about up to normal, and shippers from
the Pocahontas and New River fields are finding
labor none too plentiful, as is the case of the
shippers in the Pennsylvania fields. 1'he three
railroads having terminals at Hampton Roads
have announced an increase in the freight rate on
bunker coals, effective January 1, and this may
affect the business of the ports of Baltimore,
Phildelphia and New York. This ciuestion is
fully covered in a special article in this issue.
Aline prices of Pennsylvania coal arc much
firmer than are the prices at New York tide¬
water ports. Most of the producers in central
Pennsylvania who are in position to ship spot
coal are askin.g five and ten cents a ton over
former quotations, and this is taken as an indica¬
tion that prices from this time on will incline
upward.
At New York tidewater ports there is ample
supply of some of the cheap and medium grades
of coal, with the high grades in very small offer¬
ing. On West Virginia coals the range is $2.40
up; on medium grades of Pennsylvania from
$2.00 up, and on choice .grades $2.80 to $3. Slack
is firm at sixty-five cents at the mines on West
Virginia and eighty to ninety cents on Pennsyl¬
vania.
The Vessel Situation.
The coastwise vessel situation is just about
easy. Rates from Hampton Roads to Boston are
inclined to be a little weak, while rates to the
Sound are just about the same. There is no
change in rates from Philadelphia and Baltimore
to Sound points, and points east of the Capes.
We quote current rates on freight as follows :
From Hampton Roads to Boston, eighty to
ninety cents is about the range; to Portland and
points east of Boston, from ninety cents to $1.00.
To sound ports, eighty to ei.ghty-five cents. From
Philadelphia to New England points, about five
cents under the Hampton Roads rates.
From New York to Bridgeport or New Haven,
thirty cents; to New London and Providence,
forty cents; to Fall River and New Bedford,
forty-five cents ; to Boston, fifty-five to sixty cents.
Current quotations on bituminous coal in spot
lots are :
F. 0. B.
F. 0. B.
Somerset County —
Harbor.
Mines.
Best grades .
. $2.85
$1.30
Medium grades .
. 2.60
1.10
Ordinary .
1.00
Cambria County-
Best iMiller vein .
. 3.00
1.45
Medium grades .
. 2.70
1.15
Cheaper grades .
. 2.60
1.05
Clearfield County —
Best grade . 3.00 1.35
Ordinary grades . 2.50 1.00
Indiana County —
Best grade . 2.80 1.25
Medium grade . 2.50 .95
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
. 2.40
.85
Best |i-inrh lump .
Best grade, run of mine .
. 2.65
1.10
.90
Gas slack .
.60@ .75
New York Trade Briefs.
T. J. Sullivan, a well-known retail coal dealer
of Springfield, Mass., was in New York on Mon¬
day.
Robert K. Cassatt, eastern manager of the
Keystone Coal & Coke Company of Philadelphia,
was in New York this week.
Daniel Anthony, assistant general coal agent
of the Lehigh & Wilkes-Barre Coal Company, re¬
turned on Monday from a vacation spent at Lake
Placid, N. Y.
John Lochrie, the well-known operator at Wind-
ber, Pa., is now shipping coal from his new mine
at Central City. The operating company is known
as the Reitz Coal Company.
G. N. Snider, assistant coal traffic manager of
the New York Central Lines, who was ill for
several weeks, was able to be back at his desk
this week.
A. E. Metlach, manager of the steamship de¬
partment of the Pennsylvania Coal & Coke Cor¬
poration, is back from his vacation, which was
spent on a motor trip through the Adirondacks.
At the annual meeting of the Virginia Iron,
Coal & Coke Company, having large coal and iron
interests in Virginia, James B. Mahon and D. B.
Hull, Jr., were elected directors to succeed Bill¬
ings P. Learned and Henry K. McHarg.
Announcement will be made early next week of
the date and place for holding the annual fall
two-day tournament of the New York Coal Trade
Golf Association. Two courses are now under
consideration, the Shawnee at Delaware Water
Gap and the Seaview at Atlantic City.
Charles H. Dayton, assistant general coal agent
of the Lehigh Coal & Navigation Company of
Philadelphia, and E. J. Skeele, president of the
Skeele Coal Company of New York, are on a
western trip this week, visiting those centres
where the Old Company’s Lehigh is findin.g a
large market.
Several of the coal loading ports in New York
harbor have been visited by strikes during the
past two weeks. On last Wednesday the dock
workers at Port Johnson went out, and prac¬
tically no anthracite was loaded at this port up
to Tuesday of this week. There was a strike at
Port Liberty, which was soon settled up.
On Friday, September 17, bids w’ere received
in New York for supplying coal for Bellevue
and Allied Hospitals. The requirements call for
3,000 tons of No. 1 buckwheat. Bidders were as
follows : Meeker & Company, $3.08 per ton ;
Burns Bros., .$2.92 ; Pattison & Bowns, $2.69 ;
Chas. D. Norton & Co., $2.81.
The annual clam bake outing of the New York
Coal Merchants’ Association will be held this
Thursday afternoon at Tallapoosa Inn, on Pel¬
ham Bay. This outing is usually attended by a full
representation of the retail coal trade of New
York, with many of the wholesale trade present
as their .guests. A baseball game is usually one
of the star attractions.
The Reynoldsville (Pa.) Star is the authority
for the statement that the Pardus mine in that
section will resume operations on October 1. E.
R. Newton, Jr., manager of the Pardus mine
states that the improved demand for coal and
orders for former customers warrant them in
startin.g up the mine, and the prospects are that
this will be run on full time.
J. H. Davison, New York manager of Weston
Dodson & Company, Inc., No. 17 Battery place,
was compelled to go to the hospital on last Satur¬
day, sufferin.g from appendix troubles. He_ was
operated on several years ago for appendicitis,
and following this is was thought that all his
troubles of tliis nature were over. His many
friends in the coal trade look for his rapid re¬
covery.
At the mines of the Maple Ridge Coal Com¬
pany, in Somerset county, Pennsylvania, of which
W. A. Marshall & Company of No. 1 Broadway,
New York, are sales agents, a new tipple and
screening table were put in operation on last
Monday. This company is finding a ready sale
for its product, and the new installations of equip¬
ment will enable them to put it on the market in
the best possible shape.
It is understood that the Panama Railroad has
awarded contracts for approximately 600,000 tons
of coal to be furnished for Canal purposes for
the year September, 1915, to September, 1916, to
Crozer-Pocahontas Company of Philadelphia and
W. C. Atwater & Company of New York. These
bids were opened on September 3, the Crozer-
Pocaliontas Company bidding on 100,000 tons, and
W. C. Atwater & Company on the entire amount.
No. 13]
THE BLACK DIAMOND
259
Philadelphia Trade.
Car Supply Begins to Tighten at the
Time When Orders for Coal
Are More Plentiful.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, September 23.
Placing of B. & O. operators on a percentage
basis for their car supply, the latter part of
last week, was the big news that has helped
out the soft coal situation. The first of the
week saw considerable activity and many buy¬
ing orders placed, and the conseciuent effect
of this was to stiffen prices all along the
line. Quite a number of the mines in the
central part of the state are reporting that
their output for the remainder of the nionth
and for October has been sold up and this also
has tended to send consumers scurrying for
spot coal that may be available.
One thing that is gratifying to soft coal
men, is the fact that their repeated warnings
to the coal buyers is at last “sinking in.”
One of the local papers this week carried
quite an editorial, declaring that the shortage
of labor and cars was not a bugaboo, but an
actual fact, and that if prices were to double
in a short time it was nothing more or less
than a rise in values due to conditions that
cannot be averted. Another newspaper after
making a canvass of the labor situation, has
sent out blanks to the coal operators here
asking what they thought of the coal situa¬
tion that apparently was at hand.
Most of the local coal men are of the
opinion that prices may hold fairly steady
until the first of the year rather than take
an immediate jump when the capacity of
movement in October and November is on.
They point out that some of the heavy users
of coal, have been quietly stocking up, and
if they can get an ordinary supply for their
purposes, things may be held in check. Again
it is asserted that the storage of coal by the
big railways will allow quite a number of
cars to ‘be used in the regular trade that
otherwise had to be given over to the carriers.
From the piers there has been moved sev¬
eral large cargoes of coal destined for abroad.
Monday, for instance, saw a movement of
over 10,000 tons for foreign shipment. There
is no accumulation of cars there at the pres¬
ent time.
Anthracite Situation.
Pea coal has been the favored member of
the sizes in the hard coal trade during the
past week. At this writing the wholesalers
have had no reflection from the extra busi¬
ness that was started up with .the return of
cooler weather. Retailers, however, were
busy as beavers the middle of the week fill¬
ing up small orders for empty coal bins.
Chestnut sizes have also shown a disposi¬
tion to be better in demand and the nut coal
has been ordered freely. A continuation of
the cool spell is all that the wholesalers and
retailers ask to place the business back to
it’s normal condition for this time of year.
New Engfand has been a little slow in tak¬
ing coal from this source, and the movement
over the piers on anthracite for the past week
has been lighter than has been noted for
some time. Buying orders, however, were
received in heavier volume at midweek and
the heav3‘ shipments that will follow, it is
said, will make up a tonnage that will com¬
pare favorably '.with corresponding months
of other years.
Philadelphia Trade Notes.
I. Elmer Perry, retailer from Wilmington,
was a trade visitor seen on Monday.
Burt Gellatly of Gellatly & Co., of Pitts-
bur.gh, was one of the trade visitors of the
week.
Howard Adams of the .S. M. Hamilton Com-
panv of Baltimore, was in Philadelphia on
Inisiness on Tuesday.
F. iVIcCann of E. M. Alden & Co., Boston,
spent a couple of days this week visiting with
the anthracite coal trade of this city.
S. L. Yerkes, who represents a number of
operators in the Birmingham, .\labama fields,
was one of the visitors to the trade this
week.
W. Thomas, president of the Elat Top
Fuel Company of Bramwell, W. Va., spent
Wednesda3‘ 'u this city. Another West Vir¬
ginia operator who was here was Mr. T. E.
Houston, president of the Houston Coal Com¬
pany of Cincinnati.
The Cortright Coal Company have been ap¬
pointed the exclusive sales agents for the
output of the mines of the Hill Top Coal
Company an Indiana county operation.
John J. Kirke of A. Pardee & Co., who
has been under the weather for several weeks
past, has recovered from his illness and is
able to be back in the harness once more.
Dr. Walter S. Blaisdell, secretary-treasurer
of the Punxsutawney Coal Mining Company
of Punxsutawney, was a caller at the local
office of the company during the week.
The brothers Stauffer, in charge of the af¬
fairs of the B. Nicoll Company here, were
away during the week. J. C. was up in the
hard coal fields and Harry was in New York.
C. C. Wolf, representative of the Davis Col¬
liery Compaii}' at Columbus, Ohio, dropped
into the local offices of the company this
week. Mr. Wolf had been spending his va¬
cation at New England points and wound up
with a tour of Atlantic City.
Percy C. Maderia narrowly escaped seri¬
ous injury in an automobile crash, when his
car collided with that of a doctor near Jenk-
intown. He was thrown out, but beyond a
few minor hurts he was none the worse for
his experience.
Henry Liveright, an Osceola Mills operator
from the Clearfield district, took a look at the
liusiness conditions in the east this week. An¬
other visitor from the operating end was
Fran'K Smith, manager of the Hillsdale Coal
Company of Hesbon, I’a.
The Youghahela Coal Company of Pitts¬
burgh, have established an office in this city
at room 305 Real Estate Trust building. L.
J. Gray is in charge and will take care of the
business of the company on the seaboard.
G. H. G. Gray, his brother, who is general
manager of the company was in town for a
couple of days last week.
Quite a number of local and close-by coal
men were present at the opening of the new
freight offices of the Lehigh Valley Railroad
Company in the Bourse building on Monday.
With the opening of these offices the an¬
nouncement was made that there would be
an active campaign made for business with
a local deliverjL
Friday of this week the collier Franklin,
owned bj' the Coastwise Transportation Com-
panj' of Boston, will go into commission and
will leave this port for Baltimore, where she
will lie loaded with coal for export to the
^Mediterranean. The trial trip of the 9,000
ton vessel was held early in the week and ac¬
ceptance was ordered by the owners.
The local Chamber of Commerce has added
a feature that will be of great value to coal
men, who have an eye to export business. A
foreign trade bureau has been added to its
equipment. N. F. Poe, who represented business
houses in South America, will be in active
charge of the department. Reports and in¬
formation on foreign conditions will be on
file for the use of those who desire it.
Philadephia coal companies which have been
using Newport News as a shipping point
were much interested in an advice from the
Norfolk & Western railway announcing
changes in the terminal charges at their piers.
Formerly the rates were .$1.40 freight with
terminal charges of $30 for bunkering foreign
boats and $11 for those in the coastwise trade.
The new rate that applies is now $1.50
on the net ton and $1.()8 on the gross. This
will amount to an increase of 22 to 23 cents
on the gross ton.
Wholesalers of anthracite who make inter¬
state shipments, have been holding a close
car to the ground for any intimation of what
officials of the traffic departments of the rail¬
ways have arrived at in their conferences over
the new rates that have been established by
the Interstate Commerce Commission. While
the new rates do not go into effect until
Dec. 1, there is a possibility of an appeal,
and if the new rates do go into effect it is
liound to affect prices made on the old stand¬
ards.
The Philadelphia golfers are on the qui
vive for the particulars as to the golfing con¬
test to be held by members of the New York
trade at the .Seaview Golf Club about the mid¬
dle of September. The lone representative
of Philadelphia’s golfers, who attended the
Lakewood meeting last spring, is doing his
best to get a fair representation of the de¬
votees to be present at the fall contests. Phil-
aldephia is not without a good showing in
•golf material. Some of the local players have
figured in national contests. Within the next
few days, tlie following list of players will be
approached with a view to getting their
promise to participate. Phil Castner of Cast-
ner, Curran & Bullitt, Howard Perrin of the
Susquehanna Coal Cotnpany, A. J. Carty, T.
K. Jenkins of the B. Nicoll Company, Jack
Barnes of Barnes & Tucker, Arnold Service,
Mr. Carlisle of the Blair Parke Coal Com¬
pany, Charles Corr of the Rogers-Corr Com¬
pany and Mr. Jardine of Pilling & Crane.
The death of W. Durrel Shuster at his home
in Palmyra, N. J., removed one of the figures
that had much to do with the coal trade of
this city years ago. The early part of his
life was spent in selling coal. Over a quarter
of a century ago, he formed the wholesale
firm of Rhodes & Shuster, and after varying
success the firm finally went into the hands
of a receiver. After this he operated as a
retailer under the firm name of Shuster &
Co., and when this was liquidated, this busi¬
ness was the nucleus of the retail firm of
J. W. Edmonds & Co., which a couple of
years ago was absorbed by the George B.
Newton Coal Company. Mr. Shuster was of
the belief that concerted action by coal men
was of greater benefit than individual action.
Fie was one of the incorporators of the Phila¬
delphia Coal Exchange and served as the
first president of that organization. He was
sixty-three years of age, and was in the in¬
surance business in the closing days of his
career. He leaves four sons. A number of
the older men of the trade attended his funeral
which was held at Palmyra on Wednesday.
Reading Revenue.
Philadelphi.a, September 22. — {Special Cor¬
respondence.) — Slackening in the coal business
was given as the underlying cause of a reduc¬
tion in the revenue of the Reading Company, the
holding company of the Philadelphia and Reading
Railway Company and the Philadelphia and Read¬
ing Coal and Iron Company, in the annual re¬
port for the year ending June 30, and which
has been recently made public.
The revenue from the coal traffic decreased
$1,391,895 as compared with 1914 or equivalent
to 6.22 per cent and the sales of the anthracite
coal marketed by the Philadelphia and Reading
Coal and Iron Company, amounted to $28,476,166,
a decrease of $2,470,178. The sales of bituminous
coal were $1,028,001, a decrease of $178,672. The
total receipts of the coal company were $30,086,-
512, a decrease of $2,617,470.
The coal lands of the company are valued
at $47,859,302, in this report :
Edward T. Stotesbury, president of the Read¬
ing Company, speaking of the recent decision of
the circuit court, which found for the company
in the Government suit charging violation of the
anti-trust law, says in his report; “It is gratify¬
ing that the plan of reorganization adopted in
1896 was an honest attempt to cope with a per¬
plexing financial situation so as to save exceed¬
ingly valuable property for many persons whose
investments were in serious danger and an at¬
tempt to solve difficult legal problems with scrup¬
ulous regard for the law.’ The claim of the gov¬
ernment that the reorganization accompFished in
1896 ‘was a mere subterfuge and sham’ is de¬
cisively overruled and it is held that the com¬
modities clause of the Hepburn bill has not been
violated by the .Reading companies.”
With respect to that part of the decision which
suggested that separation of the Central Railroad
of New Jersey from the Lehigh and Wilkes-Barre
Coal Company be considered, and a decree pre¬
pared. Mr. Stotesbury says: “Owing to the fact
that Judge McPherson’s decision was not handed
down until after counsel interested in the case
had, in many instances, left their offices for their
summer vacations, no decree has as yet been
prepared. The decree will doubtless be prepared
in the not distant future, when consultation be¬
tween counsel for the government and the de¬
fendants can be had.”
The new coal pier to be built at Baltimore by
the Baltimore and Ohio Railroad will cost about
$1,800, 000, and will have a capacity estimated in
the official statement as 10,000,000 tons a year. It
will be the large.st coal pier on the Atlantic sea¬
board. The pier will be 700 feet long and 115
feet wide.
260
New England Trade
UosToN, SepteniljiT :i:>. — {S'l^ecidl Correspond¬
ence.) — The big news feature of the New Kng-
land coal market tliis week was the announce¬
ment hy the I’oston & Maine Railroad Company
that it had postponed indefinitely the award for
the several millions of tons of bituminous, bids
for which were opened a week or so ago. No
specilic reason was given for the action of the
railroad. Rumor has it that the liids submitted
were very much higher than the railroad had
expected, and that tlie company intends to ask
for new bids within the near future.
Local and nearby receipts of bituminous dur¬
ing the past week or ten days have been fairly
large. Most of this coal was consigned to con¬
tract consumers, who for one reason or another
wished for deferred deliveries. Rather than lose
a customer local wholesalers have acquiesced to
consumers’ demands. The result has been that of¬
ferings at Mystic Wharf have been considerably in
excess of recpiirements and prices have suffered
correspondingly. Most reported sales of New
River and Pocahontas reported at that point
have been on a basis of $:i.60 per ton f. o. b. cars,
but it is an open secret that some lots have
changed hands for less money.
Stocks standing and running to Hampton Roads
ports are still in excess of requirements, and
while the official f. o. b. price is still $2.85 per
ton, some shippers have made no bones of cut¬
ting prices in order to move coal. Notwithstand¬
ing this price cutting and the condition of the
Mystic Wharf market local dealers seem quite
optimistic regarding the future. , They point out
that fewer and fewer consumers are using water
power each day owing to the dry hot weather,
that their stocks of bituminous are lower than
they have been before in a long time and that
they will be obliged to come into the market
for fresh supplies before a great while. Then
too, general business conditions in this section
of the country are steadily growing better, which
spells for a greater consumption of bituminous.
They say, also, that ruling prices do not begin
to tell of the activity of the market — that a great
deal of soft coal has been shipped from southern
ports during the past six months, and that the
situation is a great deal healthier than most peo¬
ple realize.
The recent hot spell put a crimp in the local
hard coal business, but since then business has
picked up wonderfully. Practically all of the
New England retail trade are operating at ca¬
pacity and stocks in yards are being fast de¬
pleted. The demand is for cargo lots as well
as car-lots and embraces practically everything
but broken which is usually quiet at this season
of the year. A good demand for buckwheats
has sprung up in Providence, Fall River and
other Sound points, but the supply is small and
prices are very strong. No. 3 buckwheats are
selling on a basis of $1.80 per ton f. o. b. New
York, and birdseye at $2.
Stove and egg sell rapidly at $5.85 per ton
alongside Boston Harbor, nut at $6.10 and pea
at $4.05. Independent shippers are getting full
circular prices both here and at all-rail points.
One of the largest independent operators says ;
“You will not hear much more talk about inde¬
pendent shippers cutting prices during the re¬
mainder of 1915, at least.” Loadings at mines
and at tidewater points are fairly prompt, not¬
withstanding the fact that the mines are still
operating on reduced schedules. No car shortage
is reported as yet, but the time is fast drawing
near when such stories will come to hand. The
demand for anthracite from the provinces is
fairly encouraging. Pennsylvania bituminous is
unchanged at ninety cents to $1.50 per ton.
Very favorable shipping conditions has brought
about a larger offering of space from southern
ports and as a result vessel rates are a shade
easier. The averaging asking rate from Hamp¬
ton Roads to Boston is seventy-five to eighty ceirts
per ton. From Baltimore to Boston rates range
from seven to ten cents a ton more. All of
the barges carrying anthracite appear to have
been put in first class condition during the re¬
cent quiet spell of the market. Space for an¬
thracite from New York to Boston is still fifty
to fifty-five cents per ton; from Philadelphia to
Boston it is about seventy-five cents ; from New
York to Providence it is forty cents and to Paw¬
tucket, forty-five cents.
New England Trade Notes
The New England Coal & Coke Company’s
steamer Brandon en route from Boston to I.am-
THE BLACK DIAMOND.
herts Point was obliged to put hack to Bo.ston
owing to a disarrangement of her stearing gear.
'Phe Brandon was one of the steamers brought
around from the Creat Lakes recently.
.Simeon Crumb, local representative of Diekson
& Eddy, has offered a i)rize of $25 to be com¬
peted for by sixteen of the best checker players
of New England at a meeting of the Boston
Checker Club at the American House on Co¬
lumbus Day. Mr. Crumb is an ardent checker
fan.
A Vermont charter has been granted H. W.
Myers & Sons, Inc., of Bennington, dealers in
coal, wood and grain. The company has no
capital, 1,000 shares of stock representing the
property and rights. The incorporators of the
concern are; Henry W. Myers, William H. My¬
ers, and William H. Watt, all of Bennington, Vt.,
and Frederick M. M<yers of Pittsfield, Mass.
The pair of horses, wagon and two sets of
harness, all valued at $1,000, stolen from the
Brighton Coal Company on September 18, have
been recovered by the Portland police.
hollowing are the receipts of anthracite and
bituminous at Boston during August and those
for the eight months ended Aug. 31, together
with comparisons (in tons);
.\NTHRACITE.
August —
Hy sea, domestic . ,
Hy rail .
191, t.
- IS.l.SSO
1914.
157,430
.33,909
Decrease.
21,547
21,422
Total .
Since January 1—
148,370
191,315
42,909
Hy sea, domestic . .
970,997
1,144,732
107,735
Hy rail .
127,583
15,824
Total .
... 1,088,750
BITUMINOU.S.
1,272,315
183,559
August —
Hy sea, domestic . .
370,319
437,072
66,753
Hy sea. foreign . . .
27,798
14,000
*13,798
By rail .
(5,150
3,140
*3,004
Total .
... 404,2C7
454.218
49.951
Since January 1—
Hy sea, domestic . .
. . . 3,119,110
3,312,320
193,210
Hy sea, foreign . . . .
28 4,9.'3
118,788
*166,165
By rail .
53,927
38,141
*15,780
Total .
. . . 3,457,990
3,409,255
11,259
* Increase.
Buffalo Trade.
Buff.vlo, N. Y., September 22. — (Special Cor¬
respondence.) — The anthracite lake trade has not
started up to any extent, the present shipments
being about the lightest of the whole season to
date. Alany of the boats leave here light, going
after ore, and preferring not to wait for loads of
coal. The last week’s shipments were 80,950 tons,
as follows : Duluth-Superior, 35,800 tons ; Chicago,
24,800 ; Wauke,gan, 7,900 ; Green Bay, 7,000 ; Sault
Ste. Marie, Ont., 3,900; Racine, 1,550. It all de¬
pends upon how fast the coal moves away from
the docks at the other end of the lakes whether a
revival of activity will occur soon in the lake
trade. It is said that coal has lately been moving
away but slowly from the docks.
Very little business is being done in supplying
coal dealers at present and the buying is about
as light as for some time. Last week the warm
weather was blamed to a large extent for the
lack of life to trade, but a little colder weather
this week does not appear to start thin.gs moving
to any extent. Dealers find that their customers
are indifferent and until some real cold weather
comes along business is likely to be unsatisfactory.
The usual big demand is looked for this winter
and there may be some trouble in supplying deal¬
ers with all the coal needed without considerable
delay.
The bituminous demand continues better than
a few weeks ago. Warm weather has retarded
further improvement with many offices, but the
general report is that business is looking better.
The scarcity of small cars is quite noticeable and
it is also attended with a slow movement of coal
from the mines, shippers sometimes sayin.g that it
takes about twice as long as usual to get the coal
delivered. .Y shortage of men is complained of
by quite a few operators, the miners still going
al)road to fight for their native countries. Coal
production has also been curtailed lately by the
numerous holidays, as well as the spirit of unrest
amon.g the miners, who are expecting that labor
troubles will occur next spring.
The coal market holds firmer than a short
while ago, with much strength developing in
slack. Few contracts are now being taken for
slack except at stiff prices, for it is the common
opinion that a premium will rule in slack during
the winter. Consignment coal has not been com¬
ing onto the market quite so freely as usual.
[September 25
Buffalo Trade Briefs.
W. C. Blod.gett, sales agent of Dickson & Eddy
has gone to Chicago and the northwest on a busi¬
ness trip.
1). E. Russell, vice-president of the D. L. &
W. (foal Company returned this week from a
vacation of several weeks in New Brunswick,
Canada.
George H. Fox of the Cunningham Coal Com¬
pany, Chicora, Pa., and C. D. Junkins of the North
American Coal Company, Morgantown, W. Va.,
lately called on the trade here.
President E. J. Skeele of the Skeele Coal Com¬
pany, and C. H. Dayton, assistant general coal
agent of the Lehigh Coal & Navigation Company,
were visitors here part of this week.
President William F. McClurg of the McClurg-
Helsdon Coal Company has returned from a stay
at the Alden mineral baths, this county, where
he went after a severe attack of rheumatism.
Harry V. Woodward has been elected trustee of
the affairs of the bankrupt George T. Foster Coal
Company of Rochester. Both the assets and lia¬
bilities of the company are stated to be slightly
under $20,000.
George E. Henry, who is president of the Alle¬
gheny Valley Operators’ Association, has been re¬
elected president of the Keystone Mining Com¬
pany which operates the Sarah Furnace and
Sterling mines.
Baltimore Trade.
Baltimore, September 23. — (Special Corres¬
pondence.) — Alixed feelings as to the coal situa¬
tion here were found in a trip through the
trade offices. Following a week of unusually
heavy exporting of coal, there developed the past
week one of great loss as compared with many
weeks previous. During the six day working
period ending September 18, less than 20,000 tons
of coal was moved from this port on export
account. In the trade there was the general
explanation that vessel bottoms were scarce, and
this was borne out in part by some reports that
shippers who had intended sending out coal on
foreign account the past week found it impossible
to make charters at anything like fair rates.
There were some rumors of cancellations because
of dissatisfaction or misunderstandings, but these
were not verified to any serious extent.
Then there was considerable complaint of car
shortage. Operators along both Pennsylvania
and Baltimore & Ohio lines in many cases com¬
plained that they were not receiving their full
quota of cars, and that the tonnage movement
would have been much greater if this element
of failure had not entered the situation. The
trade is looking rather askance at prospects for
the near future.
Satisfaction was taken, however, in the fact
that the price list was well maintained except
in one instance, and that some slight advances
were recorded for some of the better grade -
fuels. Slack broke somewhat, and offerings at
sixty cents were noted. Heavier movement of
screened coal to the northwest to take care of
stocking before winter sets in, thus causing an
over-production of slack, was the cause assigned
for the drop. Demand for the fuel for general
industrial purposes has held well.
Prices to the trade may be quoted about as
follows :
Fairmont —
F. 0. B.
Mines.
. $0.85® .90
F. O. B.
Baltimore.
$2.23@2.28
2 23
80
. 00
1 08
Somerset —
Best .
Good .
W. M. R. R.—
. 1.10@1.15
. 80 (® 85
2. (3®2.53
2.28@2.33
1.98@2.03
1.98@2.03
2.4S@2.53
2.7802.83
2.03@2.13
B.'& 0.—
Freeport .
P. R. R.—
Best South Fork .
Miller vein .
Ordinary .
. 80@ .85
. ].30@1.35
. 1.10@1.]5
It is rather difficult to get up much enthusiasm
from hard coal men here just now. The recent
very hot spell knocked some awakening house¬
hold trade into a cocked-hat for most of them.
Of course this business will come, but it is not
pleasant to contemplate it as coming all in a bunch.
Many of the dealers too are beginning to figure
advance effects on the market should the next
year be ushered in with a practical certainty for
strikes when the miners’ agreements expire in
the spring. It is hard to get customers to figure
ahead on such contingencies, but it makes the
coal men do a lot of guessing.
The Black Diamond
Vol. 55.
No. 14
SSaVfips OCTOBER 2. 1915 $3.00 Per Year
The :
Rea!
1 ]
[ssue in West Virginia-Ohio Quarrel.
There is now in progress a great row between
the operators of Ohio and the operators of West
Virginia. It is likely to spread. This, then, is
the time to inquire: What is it all about?
The news can be summed up in two short para¬
graphs, as follows :
“Within the next thirty days all coal-carrying
Ohio, Pennsylvania and West Virginia railroads
will file with the interstate commerce commission
at Washington new schedules of rates increas¬
ing by sixty per cent the differentials in favor of
Ohio coal as against West Virginia coal. This
agreement, following a conference between execu¬
tive heads of these railroads with the commis¬
sion was announced September 9th at Columbus,
Ohio, on his return from Washington by Vice-
president M. J. Caples, of the Chesapeake & Ohio
and the Hocking Valley railroads.
“By the terms of the agreement, Toledo is to
be made the basing point for fixing new rates on
coal shipped from Ohio and West Virginia mines
to points in Ohio, Michigan and Indiana. The
rate on West Virginia bituminous coal to Toledo
is to be forty cents greater, according to the
agreement, than the rate from Ohio mines. The
rates on West Virginia coal to all other points
in Ohio, Michigan and Indiana are to be propor¬
tionately increased.”
Recently, a meeting of all West Virginia oper¬
ators was held at Huntington. The following
resolutions were adopted :
“The effort of the railroad companies to in¬
crease freight rates fifteen (15) cents per ton
on all coal mined and shipped from this state into
the markets west and north and northwest, has
raised an issue, which directly affects the coal
mining industry and indirectly affects every other
industry, commercial enterprise or financial insti¬
tution within the confines of the state.
“The proposed action of the railroad com¬
panies to advance freight rates on coal fifteen
(15) cents per ton will place an embargo on coal
production in West Virginia and cause a sus¬
pension of the mines shippin.g coal west or north.
“What is of greater importance to the people
of West Virginia, the contemplated advance in
freight rates will strike a serious blow at every
home within the state. It would impede, if not
destroy, the industrial and commercial .growth
of a great commonwealth and reduce to extreme
poverty and misery hundreds of thousands of
industrious and thrifty wage-earners and Ameri¬
can citizens.
“The coal mining industry of West Virginia
has been developed and grown to enormous pro¬
portions, not because of any special favor shown
the mining industry of the state by the railroad
companies ; not because of any advantage in
freight rates ; not because the mine workers earn
less wages than in any other coal producing
states: not because of special transportation
facilities, but simply because the operatin.g coal
men of West Virginia have persistently demon¬
strated the superior quality of West Virginia
coal and the exceptional opportunity for mine
workers to earn a high standard of wages.
“We contend that there is not an operation
within this association, or within the state, whose
profit amounts to the sum of fifteen (15) cents
per ton, hut on the contrary is much less than
that sum where profit is shown at all, and that
the consequence of such increase would be either
to force the sale of the product at a loss, or
eliminate West Virginia coal entirely from the
markets affected by the proposed differential.
“We have no quarrel with the operators of
our sister coal-mining states, but we have a
right to resent bein,g imposed upon by what
seems to be the arbitrary decision of the railroad
companies to single out and discriminate against
West Virginia coal producers. We have a right
to resist, by every intelligent and legal means
within our power, any attempt of the railroad
companies to increase the freight rates fifteen
(15) cents per ton on West Virginia coal. We
have a right to protest against the action of the
railroads in their attempt to compel West Vir¬
ginia coal shippers to pay forty (40) cents per
The Favored Field Used Its Advantage to
the Full and the Victim Found a Way to
Get a Handicap — When Prices Rule.
ton more freight than our competitors pay to
transport coal into the general markets.
“We cannot fully comprehend why all the rail¬
roads hauling coal tonna.ge from West Virginia
to the northern and western markets have jointly
agreed to attempt to enforce an advance of
fifteen (15) cents per ton in freight rate on coal
shipped from this state, unless there is a domi¬
nating influence which has compelled all the rail¬
road companies to act as a unit.
“We, the representatives of the operating coal
companies, with mines on the M. & K. Ry. and
its tributary branches from Gauley Junction to
the Ohio river ; on the C. & O. Ry. and its tribu¬
tary branches from Gauley Junction to Hunting-
ton and on the Coal & Coke railroad from
Gassaway to Charleston, in meeting assembled,
reco,gnize the seriousness of the situation,
“In the interest of thousands of mine workers
employed in the development of the industry ; in
the interest of the thriving commercial enter¬
prises of the state ; in the interest of the farmers
and wage earners of other industries of West
Virginia, we protest against the arbitrary action
of the railroad companies in their effort to in¬
crease the freight rate on West Virginia coal,
and we hereby declare and resolve,
“First. That the aCtion of railroad companies
to advance freight rates on West Vir.ginia coal
to be unfair, unreasonable, and unjust to the coal
mining industry of our state.
“Second. That the proposed action of the
railroad companies to be the worst form of
discrimination and destructive to a great industry
in which millions of capital has been invested
and giving employment to tens of thousands of
people.
“Third. That we shall oppose by every in¬
telligent and legal means within our power, any
attempt of the railroads to sin.gle out West Vir¬
ginia coal producers for discrimination in an
attempt to increase freight rates on the product
of our mines.
“Fourth. That wc appeal to every individual,
commercial and financial institution in the state
of West Virginia to join with us in protesting
against and resisting the proposed freight rates
on coal produced in West Vir.ginia and shipped
out of the state.
“Fifth. I'hat a copy of these resolutions be
given to the press, to the state board of trade, to
the boards of trades and chambers of commerce
of the various cities and towns within the state.”
What the Point Is.
These things — the news item and the resolu¬
tion — give the facts. The railroad intention is
made clear ; the differential against West Vir¬
ginia will be made larger. Also the disposition
of the West Virginia operators is evident; all
the forces, political and commercial, of that state
are going into action. That is, there is going to
be a long and hard fight between Ohio and West
Virginia before the various commissions. With
a question of freight rates as the bone of con¬
tention, these adjoining commonwealths are, in a
sense, going to war. At least the will of West
Virginia will be pitted against the will of Ohio.
That is what the issue means, really.
But what, after all, is tb.e real milk in the
cocoanut? What is it all about? An affair of
this sort never reached a point of involving all
the machinery of two states without some big
cause. What, then, started it? The crux of the
situation in all probability will be found to lie
bere in this simple human principle.
Whenever any man has an advantage over
another man, and used it not to enrich himself,
but to impoverish the other, he invites a fight.
The odds may be against the man assailed, but
if there is any ingenuity left in him or any desire
for reprisal he is going to find a way.
West Virginia is a wonderful state. It has
more coal than any other state. It has more and
better grades of coal than any other. It has
thicker veins than any competitor. There can
be no doubt about those facts. Thus West Vir¬
ginia is naturally and preeminently the greatest
coal producing district in America ; in some re¬
spects it has no superior in the world.
Also West Virginia is relatively new as coal
producing states go. Most of the mines have
not been worked for long. Therefore they still
are working under most favorable conditions.
All these things considered. West Virginia
operators should be making money and lots of it.
But the real coal men there have not made money
for a very good reason. West Virginia has no
business but coal mining, since everyone wanted
to get rich, everybody tried to produce coal. Tom,
Dick and Harry opened a mine and said they
were operators. They made up, candidly, a mot¬
ley crew recruited from almost every other line.
Most of them are small. These little fellows are
unsophisticated as business men, and are not
governed by business principles, because they do
not know what such things are.
These small men plunged into the coal trade
and played the bull in the china shop, as will
appear presently.
A Point Overlooked.
Ohio is an older coal producing state. It was
shipping coal twenty-five years before West Vir¬
ginia started and sixty years before newer fields
began. The coals of Ohio are not so good; the
mining conditions are not nearly so favorable ;
many of the mines are quite old and have been
producing for a long, long time. The average
cost of production for many reasons necessarily
is high. As a matter of fact, the only thing that
the C)hio mines had was a market. They did
have that because Ohio is one of the richest and
best states in the union.
The inexperienced small operator of West
Virginia coveted the Ohio market. These novices
in business made one fatal mistake. They said
that the .American’s cupidity will devour every¬
thing and shut his eyes to anything. They de¬
cided to make an open and frank appeal to Ohio’s
cupidity. They wanted Ohio’s market and in
exchange for it were willing to give the consumer
the advantages which West Virginia had been
given by nature. That is, the relative newness
of the mines — hence low cost of production —
larger yield per man per day — therefore lower
cost per ton — and splendid roof and floor condi¬
tions — making for clean mining were thrown into
one pot. They cut the cost of producing coal
considerably below what the Ohio operators could
possibly duplicate.
The West Virginia operator might have put
some of his advantages in his pocket as profit.
He would have done so had he been older and
wiser. Instead he proceeded to give them all to
the consumer in exchange for his order. If Ohio
was trying to get $1.20 for coal, W’est Virginia
was willing to take coal orders for $1.00. If
Ohio tried to get $1.00, West Virginia took eighty
cents. If Ohio cut to eighty cents. West Virginia
cut to sixty-five cents. There was no escape from
that. Ohio was losing and West Virginia was
gaining, the business. The transfer was made so
steadily that soon Ohio would have had none.
.After a while, Ohio awoke and started to fight.
The operators began to realize that the bottom
was going from under their investment. The
miners began to realize that their work was dis¬
appearing. The railroads saw that their tonnage
was disappearing. Everyone began to be con¬
cerned at tile same time.
These things the small West Virginia operator
overlooked. It never occurred to him that a
state political organization would want nothing
better than a fight to see that all Ohio business
should be kept intact and defended against the
attacks of outsiders. Disregarding this point, the
West Virginia operator continued his depreda¬
tions incident to cut price. They thought that
the time would never come when all of Ohio
262
THE BLACK DIAMOND
[October 2
would rise as it has now, to demand a differential
that would make competition even. Apparently
the small West Virginia operators supposed that
they could drive Ohio out of business and get
away with it.
The Broader Bearing.
If this were merely a matter between Ohio and
West Virginia it would not I)e discussed here.
However, it is far more than a local ruction. It
is a cross section of the general tendency of the
entire coal trade and the cause of most of the
ills. For example, Ohio is fighting West Virginia
to get a forty-cent advantage in freight rate in¬
stead of twenty-five cents. The question im¬
mediately is :
“What will Ohio do with that extra fifteen
cents a ton when and if it gets it? Will it be
content with the business it now has and put at
least a part of this advantage in its own pocket?
Or, will it do the same as West Virginia and use
that fifteen cents to begin to take the tonnage
away from West Virginia?
If the latter is the case, the shoe has been
merely transferred from one foot to the other.
And the trade is no better off than it was in the
first place. That is, if West Virginia has carried
on a predatory campaign against Ohio, it is not
a solution for Ohio to begin to carry on the same
sort of war against West Virginia. The transfer
of advantages does not warrant the man who has
it in future to use it to despoil the other fellow
any more than that was the case in the past.
The thing has even a broader application. What
is done to Ohio will more than likely be done to
western Pennsylvania, since the situation of the
two states is almost identical. Therefore, if Ohio
gets a forty-cent instead of a twenty-five cent
differential against West Virginia, western Penn¬
sylvania will likely get the same. If Ohio adopts
a predatory attitude towards West Virginia’s
business, western Pennsylvania is likely to do the
same thing. With two such powerful states pitted
against West Virginia, the destruction of the coal
business of that state can very easily be fore¬
seen. This again is merely a matter of trans¬
ferring the shoe from one foot to the other. It
dislodges the advantage from one place and puts
it in another place without getting anywhere in
the matter of solving the problem.
Influence on the West.
Even so, the difficulty does not end there. By
getting a fifteen-cent advantage in the rates with¬
in Ohio, it and western Pennsylvania will have
that much of an advantage in the movement of
coal to the lakes. As they get that advantage to
the lower lake ports, it is automatically trans¬
ferred to the upper lake ports. Therefore, Ohio
and western Pennsylvania have fifteen cents a
ton advantage over their western competitors in
the northwestern market. The vital question is ;
What are they going to do with that advantage?
If they i:se it to enrich themselves, nobody will
complain and there will be peace in the coal
family. But, if they use it to despoil the western
operator of his business in the northwest, we will
have presently another such situation as has now
arisen between West Virginia and Ohio. That
is, the eastern operators will be stripping the
western operators of their market and the west¬
ern operators will be forced to fight in order to
retain their share of the business.
Everything considered, the situation is of pretty
good size and the matter involved is of immense
importance. This whole matter will have to be
settled some time and, as the Illinois operators
have often declared, nothing is ever settled until
it is settled right. It is never going to be settled
right so long as an operator refuses to use his
advantage to enrich himself and insists upon
using it to despoil the other fellow of his busi¬
ness. In order to get to the solution, therefore,
we must change the whole ambition of the coal
trade. That is, we must get away from the craze
for tonnage and substitute a desire for profit.
Philadelphia Harbor.
Philadelphia — meaning, of course, those
who guard the interests of the city as a port —
has felt keenly the criticism made by govern¬
ment officials that deep draught colliers of the
navy would not be sent there for coal until
there is assured a sufficient channel.
Bids were opened the middle of August for
dredging the channel of the Delaware river
between Port Richmond and deep water. This
work is to be done by the city and will cost
in the neighborhood of $100,000.
It has been contended by the Navy Depart¬
ment that the channel in the upper Delaware
was not deep enough. The contemplated work
will give Philadelphia a thirty-foot channel
from Port Richmond to the sea at low water.
.'Vs there is a tide of eight feet, vessels draw¬
ing thirty-eight feet of water could come up
safely on high tide.
The United States Government is excavat¬
ing the turning basin in front of the Port
Richmond piers and when this is completed
large boats will be able to leave or reach this
basin with full cargoes at any stage of the tide.
This is part of the thirty-five-foot channel for
I’hiladelphia that has been authorized by Con¬
gress.
New Pier at Curtis Bay.
It is said to be the intention of the Balti¬
more & Ohio railroad officials to proceed at
once with the construction of the large coal
pier in the Curtis Bay terminal, authorized by
the hoard of directors at the monthly meeting
held in New York last week.
The new pier, which will be an important
addition to the railway facilities of Baltimore,
will cost approximately $1,500,000 and will re¬
quire at least eighteen months to complete it,
so that the final details of the plans will be
gone over and bids asked on the structure
without delay.
With the new pier, whose capacity will be
10,000,000 tons a year, Baltimore will be placed
in a strong position to secure a large share
of the export coal trade. Not only will the
city be thus placed in the front rank as a coal
port, but its general importance as a shipping
center will be emphasized.
The new pier at Curtis Bay marks the com¬
pletion of a plan which the Baltimore & Ohio
railroad has had under consideration for some
time of enlarging its Baltimore terminals.
Careful study has been given by the officials
to modern coal terminals, with the result that
the new pier will be the last word in struc¬
tures of its kind and embody many features
which will be new.
Unlike the present pier at Curtis Bay and
most of the others on the Atlantic seaboard,
the new structure will be designed on the unit
plan with individual car uftloaders of large
capacity which can be worked singly on vessels
docked on either side of the pier or the entire
loading capacity can be directed to the load¬
ing of one ship.
The new pier will be fireproof throughout
and of steel construction. It will be 700 feet
long by 1J5 feet wide. In preparing the plans
for the new pier, which were submitted to
President Willard, Francis Lee Stuart, chief
engineer, determined upon new devices, which,
while insuring great speed in loading vessels
will prevent breakage of coal while being
emptied into the holds of vessels. Breakage will
be overcome by means of a system of belts
leading to movable towers, which will load in¬
to vesels on either side of the pier by means of
shuttles and belts on these towers.
The individual car dumpers will be able
to handle cars fifty-three feet long and unload
forty 100-ton cars an hour. The belts will be
run at speeds varying from 250 feet to 500 feet
a minute. Therefore the capacity of the pier
will be from 3,000 tons to 6,000 tons an hour
according to the necessity for rapid loading.
This IS greater than the capacity of any struc¬
ture of the kind yet built. It will be possible
to load two vessels on opposite sides of the
pier with one or two dumpers comprising the
units of the pier, or it will be possible to load
the output of two car dumpers into one vessel.
Officials of the railroad point to the large
increase in coal traffic handled at Curtis Bay
during the present year as providing the neces¬
sity for the new pier. To July 31, according
to statistics of the road, the coal handled at
Curtis Bay had exceeded the entire tonnage
handled during 1914.
July Coal Exports.
The Department of Commerce, through the
Bureau of Foreign and Domestic Commerce at
Washington has just issued a statement covering
the exports of domestic coal and coke from the
United States and bunker coal laden on vessels
engaged in the foreign trade at the specified dis¬
tricts, during the month of July, 1915. It follows:
Maine and New Hampsh
Maryland .
Massachusetts .
New York .
Philadelphia .
Porto Rico .
ire 831
5,458
Virginia .
Florida .
Mobile .
New Orleans .
36
Arizona .
El Paso . ..
Laredo .
San Francisco .
Southern California...
4
Washington .
Buffalo . .
Dakota .
Duluth and Superior...
28
Michigan .
95
Ohio .
Rochester .
68,442
St. Lawrence .
Vermont . .
690
TONS.
Total .
. 273,206
Coal-
258,.585
3,021
167,321
75
765,778
558
1,037
1,929
10,357
1,363
31
25
321
161,490
1,984
1,357
32,257
714,767
82,871
21,038
328
2,226,493
Coke.
12,072
1,636
26
701
19
3,094
10,934
32
13
3,191
29,585
123
27
5,537
550
681
1,535
69
69,825
BUNKER COAL.
Districts — Gross Tons.
Maryland . 53,113
New York . 289,202
Philadelphia ., . 47,053
Virginia . 177,499
Shipments of Anthracite Coal By Sizes.
•A. statement just issued by the Anthracite Bu¬
reau of Information at Wilkes-Barre gives the
distribution of the shipments of anthracite during
1914 according to the sizes shipped from the dif¬
ferent regions. It shows that of the 68,342,601
tons sent to market in 1914, 41,976,907 tons, or
61.42 per cent, were of the prepared or domestic
sizes, and 26,365,694 tons, or 38.58 per cent, con¬
sisted of pea and smaller sizes. One of the in¬
teresting features of the statement is the larger
proportion of prepared sizes and the smaller pro¬
portion of steam sizes shipped by the Wyoming
region as compared with the Lehigh and Schuyl¬
kill regions.
The shipments of stove and chestnut coal, the
two highest priced grades, from the Wyoming
region constituted 46.66 per cent of the total from
that region, whereas the shipments of these sizes
from the Lehigh and Schuylkill regions consti¬
tuted only 39.07 and 39.45 per cent respectively of
the totals from these districts. The shipments of
pea and smaller from the Wyoming district con¬
stituted 35.38 per cent of its total as compared
with 42.7 per cent from the Lehigh and 43.64 per
cent from the Schuylkill. These figures exem¬
plify the more favorable mining conditions that
obtain in the Wyoming or northern region.
There was a slight increase in the percentage
of small sizes in 1914 (38.58 per cent) as com¬
pared with 1913 (38.26 per cent), but with the
exception of 1913 the percentage of small sizes
in 1914 was the smallest in several years and
points to the gradual disappearance of the culm
banks from which the greater part of this portion
of the product has been obtained. The output
of “washery” coal, as that from the culm banks
is designated, reached its maximum in 1909, when
41.76 per cent of the total production consisted
of the small sizes. By 1912 it had dropped to
39.23 per cent and in 1913 it was 38.26 per cent.
STATEMENT SHOWING PERCENTAGES OF THE VARIOUS SIZES OF ANTHRACITE SHIPPED FROM
THE SEVERAL REGIONS DURING YEAR 1914.
r— Wyoming Region— >
/—Lehigh Region — ,
^Schuylkill Region— >
- Total-
Tons.
Per Cent.
Per Cent.
Tons.
Per Cent.
Tons. Per Cent.
Lump .
. 78,605
.19
27,755
.31
70,028
.38
176,388
.26
Broken .
5.04
468,830
5.16
934,070
5.05
3,458,123
5.06
Egg .
. . 5,188,774
12.73
1,167,515
12.85
2,118,487
11.46
8,474,776
12.40
Stove .
. 8,987,458
22.05
1,696,741
18.67
3,419,831
18.49
14,104,030
20.64
Chestnut .
. 10,032,2,55
24.61
1,854,383
. 20.41
3,876,952
20.96
15,763,590
23.06
Pea .
11.11
1,148,966
12.64
2,344,120
12.68
8,021,600
11.74
Buckwheat No.
Smaller than
1 . 4,430,737
buckwheat
10.87
1,285,262
14.14
3,203,990
17.32
8,919,989
13.05
No. 1 .
13.40
1,437,659
15.82
2,527,209
13.66
9,424,105
13.79
40,760,803
100.00
9,087,111
100.00
18,494,687
100.00
68,342,601
100.00
No. 14]
THE BLACK DIAMOND
263
Year’s Work of the American Mining Congress.*
An appreciation of the fitness of things de¬
termined the American Mining Congress to
hold its meeting in San Francisco this year,
and to participate in the Exposition, which
celebrates the completion of the Panama Canal.
Mining has had much to do with the de¬
velopment of the West and hence with the
creation of those conditions which made the
canal, in a home sense, advisable. We may
well say that mining is, in fact, responsible
for the discovery of the Pacific Coast, or at
best its rediscovery under more favorable con¬
ditions. Until gold was found in California,
the vastness of the western prairies, the snow¬
capped ridges of the Rockies, and the alkali
deserts presented a series of barriers to the
early settlers which they were not keen to try
to surmount. To cross all three with primi¬
tive transportation facilities was a problem
as difficult and as hazardous as the sailing of
the unknown seas by Columbus some 400 years
ago. The discovery of gold, however, brought
a great number of people to the Pacific slope,
and California’s cities grew out of those min¬
ing camps. This magnificent city is one of
the results.
Thus mining is the foster parent of modern
California and, indeed, the underlying industry
of the west. That is to say, the miners and
prospectors soon learned to appreciate Cali¬
fornia’s wonderful climate and soon learned
the capabilities of its soil. This led directly
to that great agricultural and horticultural de¬
velopment which has become famous the world
over.
With the double productivity of the state
proved, the railroads indulged in competitive
campaigns looking to the construction of
transcontinental lines to bring in the equip¬
ment to be used in the mines and to carry
away the products of the soil. Thus began
the trade exchange on which California grew.
These facts are mentioned because, as min¬
ers, we are proud of the strong influence which
our industry has exerted upon a community
so productive of great wealth that it finally
called for and brought about the construction
of the Panama Canal.
We have an interest in the completion of
the Panama Canal as an engineering feat,
namely, that in the execution of the. work min¬
ing methods were used, such as dredging,
sludging and blasting. And, without the use
of cement, which is also a product of mining,
it would have been impossible to complete
this \york without excessive cost and delay.
California is truly a great mining state, rank¬
ing as it does the fifth producer of the United
tSates, with an annual value of the produc¬
tion of over $100,000,000. This is more than
the output of twenty other states. And the
growth from nothing to this commanding posi¬
tion has been accomplished in less than sev¬
enty years. It is, therefore, proper that the
highest tribute should be paid to the repre¬
sentatives of the mining industry in this state.
We are becoming accustomed to deal in very
large figures in this country, but few not con¬
nected with the mining industry realize that
the value of the mineral products of the Uinted
States in 1913 was in excess of ,$2,500,000,000.
This convention at San Francisco was called
mainly for the purpose of bringing together
men interested in mining that they may appre¬
ciate that their purposes and their problems
are one, even though their technicalities and
their local conditions differ. To this end we
afford opportunity for brief discussions, believing
that with the ground cleared here of any and all
misgivin.gs the work will be taken up more
actively and with more purpose when we return
to our respective homes. With this in view, the
li.st of addresses has been confined to the most
urgent and important subjects. In keeping, this
statement of your president Is restricted to a
brief review of the accomplishments of the year
and to a few .suggestions touching future needs.
The year just closing has been one of many
and grave perplexities. The European war, which
so seriously depressed the metal producing in¬
dustry during the closing months of 1914, re¬
sulted in a healthy reaction to the copper and
other metal industries in 1915. At the same time
general business has endured a depression which
had a detrimental and blighting effect upon the
coal indu.stry. This is cspecialy true of the Cen-
*President's report to the .5merican Milling Congress
at San Francisco, September 21, 1915.
By Carl Scholz.
Many Things Have Been Done for the
Mining Industry But Much Remains to
Be Done — Policy Outlined.
tral Western States. The exports of coal from
the eastern fields, or those adjacent to the sea¬
board, and the sales of coal to makers of war
materials, have in part offset the domestic trade
losses.
To relieve their distress, strenuous efforts have
been made by the coal operators of Illinois and
Indiana to devise and adopt permissible coopera¬
tive methods that would introduce economies and
eliminate the disastrous and wasteful forms of
competition, while leaving the competitive spirit
full room in which to grow healthfully.
The increased use of water power, fuel oil and
gas, the consolidation of light plants, and the
establishment of electrical central power stations,
have seriously curtailed the use of coal in various
sections. These things, in addition to the un¬
settled trade conditions and to the influences
growing out of the European and Mexican war
situations, have brought about a serious situa¬
tion for many coal fields: they have affected
employers and employes alike. The aid of the
Federal Trade Commission, which came into
existence on April 1, has been invoked in an
effort to find a solution for these problems. But
the Commission feels that, as now constituted
and endowed, it has no power to deal effectively
with the situation. Even so, it is deeply in sym¬
pathy with the efforts of the coal owners.
This convention will be addressed by the ablest
men in the country on the question of govern¬
mental regulation of business, hence it is not
necessary to elaborate that subject here. Suffice
it to say that it is the evident tendency that we
arc to become a government by commissions ;
whether this will meet our complex needs in one
of the grave questions of the hour. Its very
gravity suggests that it should be the duty of
every citizen to consider carefully this subject as
the one most vital to his welfare and to the ver^
existence of our form of government. Mean¬
while, the enactment of the Clayton bill, which in
a sense permits labor to do the very thing which
the Sherman act denies to capital, suggests a
growing political tendency to distinguish between
forms of employment, degrees of wealth and the
voting strength of the adherents of certain ideas
which — seeing the indefinite and uncertain attit-
tude of the court.s — strikes at the very foundation
of our government. This Congress has lieen
neither an antagonist of labor nor a protagonist
of capital. But it does stand firm on the doctrine
that our government must show partiality to
neither. It insists that the national Congress and
the state legislatures shall consider these economic
subjects in terms of enduring principle and not
in terms of relative voting strength of certain
partisans.
It is not our belief that the report of the Com-
rnission on Industrial Relations as recently pub¬
lished was expressive fairly of the facts consid¬
ered nor of any attitude which our government
can take. Its publication as a public document
can work only mischief, and in consequence it is
deplored.
Perhaps no social or economic subject has been
so generously discussed as the propaganda for
workmen’s compensation acts. Laws on this sub¬
ject have been operative in a number of states
for several years. This subject has been dis¬
cussed frequently on this floor, and undoubtedly
the statements here made have given helpful
direction to many efforts to make these laws
sane. Even so, there is great lack of uniformity
and there is need that we address ourselves to
that subject at once. For example, it is clear
now that the compulsory feature, injected into
the laws of several states, does not meet the
approval of either the employers or the employes.
This needs to be changed.
Also, employers generally believe that the in¬
dustry should bear the cost of its accidents, but
in many instances the decisions made by state
commissions are manifestly unreasonable and re¬
sult in litigation and ill will, which is not desired
by the employers and cannot be beneficial to the
employes. A better way than now exists gen¬
erally must be found for collecting and admin¬
istering any fund collected for this purpose.
The attitude of the government in endeavoring
to obtain information which will assist it to find
a solution for some of our vexing industrial prob¬
lems is deserving of our commendation and
should have our cooperation. The activities of
the Federal Trade Commission are especially
commendable in many directions, but in no one
way more so than when it advised industries
generally to adopt standardized accounting for
the ready and accurate comparison of competing
units and for the purpose of ascertaining costs.
The cooperation existing between the Bureau
of Mines and the Geological Survey and the min¬
ing industry should be furthered by asking suit¬
able appropriations for this work. In addition to
the safety and life saving features and rescue
work, the complete utilization of our mineral re¬
sources should be encouraged. The great need
for coal tar products and its adoption for the
separation of ores by the flotation process and
other problems resulting in greater economy are
deserving of the close.st attention. Cooperation
with the Federal Trade Commission in solving
the problems of fair and unfair competition and
an extension of trade relations is desired.
The question of control of the mineral re¬
sources, now withdrawn by the government, is of
the utmost importance. The present status is
seemingly unsatisfactory to a great number, and
it would seem advisable to bring the needs of the
affected areas fairly before congress to settle the
present chaos with as little delay as possible and
with justice and fairness to those directly af¬
fected.
Reference to the development of the mining in¬
dustry and the conservation of life and limb to
those engaged therein would not be ' complete
without recalling the untimely death of the first
director of the United States Bureau of Mines,
who, as a life member of this congress, was one
of its staunchest supporters. A special session
will be held on Tuesday, September 21, in com¬
memoration of Dr. Joseph A. Holmes.
Death has also claimed other prominent mem¬
bers during the year. The west, in the death of
Colonel Thomas Cruse, has lost a prominent fig¬
ure in the metal mining industry ; the southwest,
Mr. James Elliott, who was our vice-president
for Oklahoma and one of the leading figures in
that section.
It is gratifying to say that notwithstanding the
serious business depression, the finances of the
American Mining Congress are in a healthy con¬
dition, and this in the face of the great drains
upon our resources resulting from the expenses
arising from the publication of the “Mining Con¬
gress Journal.” This has proved a valuable aid
to this organization, if we are to judge by the
many favorable comments received.
The organization of several new state chapters
prompts the opinion that we are making head¬
way, but it is evident that only by continued and
unceasing efforts will we be able to accomplish
our aim.
The cordial co-operation accorded me by the
membership and the directors and officers is
gratefully acknowledged.
264
THE BLACK DIAMOND
[October 2
Haven’t Coal Men the Guts to Get Good Prices?
Phii.adelphia, September 30. — (Sfyecial Corre¬
spondence.) — About a year ago William Allen
White, the sage of Emporia and newspaper man
extraordinary, wrote a magazine article relating
to the aridity of Kansas in a booze sense.
“Willum” took up about a half column apologiz¬
ing for and paving the way, to use an inelegant
but forceful old English phrase, to the effect that
any state could become dry “if it had the guts
to do so.”
Is that what is the matter with coal prices at
present? Haven’t coal men the guts to get a
.good price?
Let’s get this thing straight before we start to
rattle the dead bones. If this is going to be an
argument, a discussion or a sermon, it is a pretty
good thing to start out with a given foundation
and the quickest way to get that is to build it.
For nigh onto three years, coal men have been
taking their coal from the earth, placing it on
cars and trusting to the good Lord and tlie sellin.g
force to break even. Distress, from low prices,
was the regular thing; an upward turn in price
was as welcome as a missionary at a cannibal
feast.
Then came the war last year. It was tough
sledding before that, but it was a hang sight
worse afterward. For a year, the jobber and the
consumer— if they had the sense that was given
little geese — have had a picnic. It has been prac¬
tically a consumer’s market with prices practi¬
cally what they wanted to make them.
The Price Tendencies.
There have been times when the anthracite man
could look on his bituminous brother with a
pitying smile. That was when the latter was
being pinched by over production and the other
things that send the prices to the bottom. This
spring and summer, even the hard coal man has
found it hard to get prices. Time was when the
so-called anthracite circular price was inviolate.
The ten cents more on the ton, starting with May
1st, was added as regularly as the change in date
was made on letters.
This year, while it does not show on the
surface, quite a jag of hard coal has been sold
as late as the middle of August at what is known
as “April circular, tax off.”
A little strengthening of bituminous prices has
been seen lately, but it has been a halting, hesi¬
tating, half-hearted sort of rise. The coal oper¬
ators have been like a lot of bad boys surprised
in a farmer’s apple orchard : they have been un¬
decided whether to stand still and be caught or
leg it and take a chance.
Having thus the facts, ' as to the producers’
policies, how do those policies conform to the
other facts — the state of demand and the supply
of labor, cars and coal?
The Labor Situation.
Take the labor question. It has been figured
that, in normal times, at least 1,000 families went
to the coal districts per week. The war cut that
off practically.
And, the war did more than cut off the source
of supply; it started subtracting from the supply
already here. At first it was a dribble — a hundred
or so men a week went back to the fatherlands
to fight. But, since Italy’s entrance into the
war, the dribble has become a steady and ever-
increasing stream? Within the last couple of
weeks it has been nothing for the newspapers at
the eastern seaboard to record the fact that
1,300 or 1,.500 reservists “sailed yesterday on the
liner So-and-so.” Suppose we say that five hun¬
dred of this number came from the coal regions.
That means that fully 1,500 men are lost each
week to the coal fields.
And there is another feature. Since the steel
mills and other industries which use common
labor have started booming, the call to higher
wages and more steady work has been heard
at the mines. Quite a number of the miners have
heard and responded to the call.
If the mines of the state of Pennsylvania were
called upon tomorrozv to zvork to capacity, not
two-thirds enough men could be found to man
them.
That seems a pretty broad statement, but a
concrete case proves it does not overstate the
situation. A mine in the bituminous section of
Pennsylvania — working the B. Miller vein — has
been running on half time for nearly ten months.
The sales manager, who does not pose as a
With Every Condition in Their Favor,
They Are Still Cutting Their Prices
Down to a Low Level — A Few Facts.
seventh son of a seventh son, believed that he
saw more advantageous prices in sight with the
coming of September. So he determined to
“speed up” on the sales end and then see what
the operating end could do in the way of “fallin.g
into line.”
This mine has produced 7,000 tons a week.
At half time, it was producing 2,100 tons a week.
Three weeks ago full time was ordered and the
production was 2,400 tons — an increase of 300
tons on the week. The superintendent had the
under-cutters to get down the coal not enough
men.
The second week a call was issued for more
men or enough to bring the shifts up to their
former quotas. Sixty men were all that were
to be had. Where did they come from? From
five other mines in the vicinity that were work¬
ing half time. When the other five mines tried
to get men to take their places, they found that
the neighborhood supply was at bed rock.
It is an open secret that the labor contractors
of Pittsburgh and West Virginia cities, where
mine labor can be had normally without any
ado, have gone for weeks without supplying one-
fifth of the requirements of some of the mines.
And April 1st sees the opening guns trained
on the wage scale question. In Pennsylvania,
both anthracite and soft coal miners will come
forth and state their case. The emmisaries of
labor are already on the ground. The “itch” is
being spread. At the time that this article was
being written it was told the writer that the
men of a non-union mine had walked out. They
had not asked for any union recognition — they
wanted better wages and a guarantee against
short time. The short time of the past couple
of years has caused more discontent than any
other factor.
The Car Situation.
The car situation has always been a potent
factor in the prices of coal. Last week the daily
papers commented that the railways were waking
up — when it was too late — and that continuous
inquiry was being made of the steel mills as to
their ability to turn out railway supplies — cars
and rails. Only one railway — among the eastern
coal carriers — has even tried to keep its rolling
stock up to standard. Some of the others this
summer tried to patch up their equipment. They
did the best they could, but still it was a patch-
work job that was done.
The West Virginian carriers — where originates
so much tonnage — have kept pretty well in pace
with the increased coal business from their fields.
But, how about the lines which complete the
delivery — the Ohio roads, for example? The
floods of 1913 set them away back and the money
stringency since has kept them from adopting
a program of progress. That is, they fell behind
and have not recovered. That is generally true.
Here is another thing to consider : Many
journals are devoted to practical railroading,
riie feature of these ordinarily is the news of
big buying. The feature of these papers today
is not the orders for new rolling stock, but rather
the lack of comment thereon.
It would seem that any stress or any extraor¬
dinary demand on the railways will place them
in a worse tie-up than has ever Iieen seen. Do
the railways know this? Here is an extract from
a news despatch, printed in one of the conserva-
'tive dailies in Philadelphia under a Pittsburgh
date line ;
“According to reliable information all the big
trunk lines as well as the smaller railroads are
now storing coal against any contingency that
may arise as a result of the heavy demand for
export coal and the threatened shortage of labor
due to the return of thousands of foreign-born
miners to their native lands. * * * Since July
1st the Pennsylvania Railroad, the Baltimore &
Ohio, the Bessemer & Lake Erie, the Buffalo,
Rochester & Pittsburgh, the Pittsburgh & Lake
Erie, as well as smaller lines, have been accumu¬
lating a fairly large percentage of coal mined in
the Pittsburgh district. At all of the big coal¬
storing stations of these companies hundreds of
cars are arriving weekly, and the stocks at many
points are be.ginning to assume large proportions.
Although officials of the different companies re¬
fuse to assign any particular reason for the stor¬
ing of fuel, none denies the fact that it is being
done.”
How well the Pennsylvania Railroad thinks of
its preparedness for emergency is shown by a
later despatch from Sunbury, Pa., which states
that this trunk line is converting abandoned yards
at the lower end of that city into storage places
for coal.
It might be well also to remember that one
of the biggest grain crops ever harvested will
move to the seaboard this year. Also, the steel
industry, which last fall was working at forty-
five per cent of normal, will this year make heavy
demands on railways for equipment.
Influence of Exports.
It is a well-known fact that within the last
thirty days various contracts have been made for
export coal that will take a considerable tonnage
from the market.
One of the stock explanations of why coal has
been sold at prices named by consumers has been
that there has been over-production. This, it
has been argned, has been increased heavily in
the last couple of years by the opening of new
mines now ready to pour a tremendous tonnage
on the market. This looks ominous, but —
Only recently and in only one city, a half
dozen sales managers have shown the writer
legitimate inquiries that would total 600,000 tons.
This measures in a way the larger demand.
Also, the list of chartered vessels for the last
month shows that a goodly increase in coal going
abroad is a fact.
Add to this, a restriction upon shipments of
coal, that may come at any time, from Great
Britain, and it can be seen that whatever over¬
plus there is at home will have a market to
absorb it abroad.
Why the Low Prices?
With, as shown, production curtailed and orders
increasing, it is time to inquire : Why these
wobbly and uncertain prices? Upon sober and
impartial observation, this cause is given : The
coal operator and his sales force have leaned
so long on the arm of the consumer and have,
for so long, let him do the buying instead of their
being annoyed to do the selling that they can’t
change in a hurry. In fact, rather than becoming
as aggressive as their condition warrants, the
coal men are waiting for the user of coal to
show timidity before they advance their price.
What of the Weather?
One other factor enters, but that is a subject
for speculation only : What will the weather be
during the winter months? There is a saying
among stock brokers that “he who bets on the
weather is doomed to the bottomless pit.” Even
so, it is well to take into consideration that for
two years we have had mild winters. This article
goes no further ; the reader’s imagination must
complete the prophecy to his own liking.
In the matter of raising the price of coal to
the public, it might be well to keep in mind that :
The banks are groaning with money; that work¬
ingmen are scarce and are making slathers of
money ; that the west with long prices for grain
and plenty of it, has money; and that .general
business is good.
Why, then, is it that coal prices have not
shown a response to conditions? Is it up to the
coal man ?
His cost of mining has been advancing. Labor
is getting ready to make another demand for
more wages and goodness knows what else. The
steel man is .getting his profit, the steamship
men are getting theirs. Even manufacturers are
not overlooking a chance to make up for lean
years. What is the shadow that the coal man
is stumbling over? Is it a case such as William
Allen White described — that he hasn’t the .guts
to get what is coming to him?
As indicating the immense quantities of steel
required in making munitions, it is stated that
each nine-inch shell calls for 300 pounds of steel ;
each twelve-inch shell 1,000 pounds ; each eleven-
inch shell 620 pounds ; the ten and three-quarter-
inch, shell 610 pounds, while the sixteen-inch
shells will weigh one ton each. This estimate is
made on an inquiry from Franch for 135,000 tons
of steel for use in making a total of 773,000
.shells. These, when loaded, will cost about $25,-
000,000, the steel alone being valued at $6,750,000.
No. 14]
THE BLACK DIAMOND
265
Putting American Coal on Argentine’s Market
An article appearing in a recent issue of “The
Americas,’’ a magazine published monthly by the
National City Bank of New York, contains much
valuable information regarding the Argentine coal
situation. It contains also some timely sugges¬
tions on the increased possibilities of our export¬
ing coal to that country.
Some of the statements and suggestions are
open to criticism. For example, the railways are,
of course, the largest users of coal in Ar.gentina,
but the article does not mention the next largest
consumers of coal, viz., the steamships taking
on bunker coal.
While it is true that Argentina is not as yet
a coal-prodUcing country, she has, undoubtedly
large coal-bearing areas which are being developed
slowly.
The petroleum industry deserves more extended
mention. Under date of April 8th, La Nacion
gives the following data :
“The oil deposits at Comodore Rivadavia,
owned and worked by the government, comprises
twenty-one wells, eight of which are producing.
These deposits are ri.ght on the coast and most
advantageously located.
“The wells are all gushers, with a strong flow
of gas, oil being found at various depths, from
630 to 653 meters. The Argentine is planning
to increase production largely and to encourage
the use of oil as fuel.
“From these deposits 95 million cubic meters
of oil was produced from 1907 to March 26,
1915.
“There are also eleven wells owned by private
companies, three of which are producing.
“It will probably be some years before the use
of fuel oil is extended, but it is a coming factor
that must be reckoned with.”
The Use of Coal.
The annual imports of coal into Argentine
were, in 1913, 4,046,278 metric tons, 3,693,572
from Great Britain, but in 1914 they fell off
considerably, to 3,124,312 tons of which
Tons.
From Great Britain . 2,883,064
From United States . 241,248
For the first four months of 1915 :
Tons.
From Great Britain . 730,559
From United States . 148,999
Total . 879,558
At this rate, 1915 will show a still greater de¬
crease, not much over sixty per cent of the 1913
total.
It is quite true, as seen from the above, that
Great Britain has had and still has a practical
monopoly of the Argentine coal trade. The
reasons for this monopoly may be summed up
commercially in four words — Price, Quality,
Credits, Supply.
Friendship, pull, custom of usage, furnace
equipment must also be fought by the United
States exporter.
Discussing the reasons for the British monop¬
oly, the article under consideration give :
1. Different furnace equipment.
2. Different customs in furnace equipment.
3. Influence of British capital.
4. Higher freight rates and scarcity of ships
from United States.
5. Return cargoes always available to Great
Britain and not to United States.
1. The reason that grate bars suitable for
Cardiff (why not say British) coal are not always
suitable to United States coal is that most of the
Cardiff or British coal is screened “large” coal,
while the North American steam coal that has
been shipped to the Argentine was not screened
at all, being run-of-mine or “through and
through,” as the British call it.
Of the British coal shipped to the Argentine
in 1914, 2,883,064 tons, 2,429,260 tons were large
coal, 71,426 tons, small coal or slack and 7,270
tons “through and through.”
It is also true that the men who burn the coal
are not accustomed to strongly coking coals, such
as New River and Pocahontas, which, they claim,
give the firemen more work than do the Welsh
coals.
Influence of British Capital.
2. There can be no question that the influence
of British capital has much to do with the use
of British coal in the Argentine directly and
indirectly, as will be quickly found out by anyone
tryin.g to sell coal to British controlled com¬
panies. Some of the large British coal interests
are, in fact, largely interested in Argentine enter¬
prises.
By F. R. Wadleigh.
Freight Rates and the English Coal Situ¬
ation Favor Us Now, But We Need Re¬
turn Cargoes for Ships and South Ameri¬
can Docks.
In fact, to sell a large tonnage in the Argen¬
tine, a visit to London would be absolutely neces¬
sary and one to the Argentine advisable, but not
likely to be successful.
As the article says, there are other coal-usin.g
interests besides the British ; Italian, German.
French, Belgian and North American, some of
which at least would buy coal from the United
States.
The reason such interests have not bought
United States coal has not always been because
of price.
Of course, every one knows that the f. o. b.
tidewater prices of United States coals are below
those of the best Welsh coals, but the writer of
the article makes the mistake of classing to¬
gether the prices of all British coals. Now there
are other British coals exported besides Welsh,
even to South America; moreover, there are dif¬
ferent kinds and grades of Welsh coal.
In 1913, 498,811 tons of coal other than Welsh
was shipped to Argentine from Great Britain.
In 1914, the average f. o. b. price of the British
lar.ge coal shipped to the Argentine was $4.21
per long ton; but there was also 71,426 tons of
smalls, the average price of which was $4.01.
During the first four months of this year the
average f. o. b. price of British large coal to the
Argentine was $4.59; of small coal, $4.32.
Important Price Changes.
It is not, however, the export price that should
be considered in this connection, but the export
price plus the ocean freight and insurance. When
the war be.gan, freights from Cardiff to Buenos
Aires were $3.16, from the United States $3.40.
Price of coal, f. o. b. Hampton roads . $2.70
$2.70 -f- $3.40 ;= $6.10
Price of Welsh large coal . 4.25
$4.25 -f- $3.16 = $7.41
ON JANUARY 1, 1915.
Cardiff to Buenos Aires . . $3.95
Hampton Roads to Buenos Aires . 6.07
Price of coal, f. o. b. Hampton Roads . 2.70
$2.70 -h $6.07 = $8.77
Price of Welsh seconds, large . 4.37
$4.37 + $3.95 = $8.32
MAY 15, 1915.
Cardiff to Buenos Aires . $6.32
Hampton Roads to Buenos Aires . 8.50
Price of coal, f. o. b. Hampton Roads . 2.70
$2.70 -f- $8.50 = $11.20
Price of Welsh seconds, large . 8.75
$8.75 4- $6.32 = $15.07
JUNE 1, 1915.
Cardiff to Buenos Aires . . $6.44
Hampton Road to Buenos Aires . 8.87
Price of coal, f. o. b. Hampton Roads . 2.70
$2.70 -f $8.87 = $11. .57
Price of Welsh seconds, f. o. b. Cardiff (May 21) . . 8.50
$6.44 + $8.50 = $14.94
The above figures will show that in _ normal
times our small exports must be explained by
something other than price; they also show the
reason for the recent increase in our exports to
South America.
The article states that analyses of “Many North
American coals” show no reason for their not
being used to a greater extent in South America,
etc. Now there are very few North American
coals that “have competed successfully in many
foreign markets.” Leaving out gas coals, there
are only about four United States coals that
have been successful in foreign markets and these
only when their delivered price was lower than
that of the better grades of Welsh coals. “Some
of them present most, if not all, the essential
characteristics of Cardiff coal.”
A Matter of Quality.
Let us consider the analysis question. What
are the “essential charactistics of Cardiff coal”
in this respect? Cardiff coals, as exported, con¬
tain from 11 to 30 per cent volatile matter, from
.7 to 1.25 per cent sulphur, from 3.5 to 10 per
cent ash, from 14,400 to 15,300 B. T. U.
Compare the following actual analyses, all of
coals as shipped, not picked or mine samples :
1. 2. 3. 4. 5.
Moisture . 2.83 2.63 .83 1.46 .73
Volatile matter... 20.93 18.25 15.22 15.70 29.13
Fixed carbon . 71.43 73.87 80.60 77.94 63.24
Ash . 4.81 5.25 3.40 4.84 4,90
Sulphur . .746 .62 .89 1.04 .56
K. T. U . 14911* 14021* 15244 14798 14749
*Dry.
1. New Kiver. Average analysis of nine cargoes,
about 50,000 tons, sainpleil and analysis by U. S. Bureau
of Mines.
2. Pocahontas. Average analysis of seventy-five car¬
goes, sampled and analysis by U. S. Bureau oi Mines.
3. Welsh first class admiralty. Analysis of actual
shipment, large coal.
4. Welsh, second class. Analysis of actual shipment,
large coal.
5. Best Monmouthshire. Analysis of actual shipment,
large coal.
Analysis of other British coals exported to
Argentine are given below ; the best of them sells
today for $5.77
f. 0. b. loading
port (Hull or
Tyne ports) :
Best York¬
Northumber¬
Durham
shire Steam.
land Large.
Unscreened.
Dry
1.50
3V.85
28.37
30.13
' 64.56
67.67
62.27
2.59
3.40
6.10
90
.86
.92
14610
14887
14270
Moreover, as
stated above, all
of the British
steam coals shipped to South America are not
Welsh coals, quite a large tonnage comin.g from
the Northumberland and Durham districts ; these
coals are higher in volatile matter than the Welsh
coals, not as high in heating value, but are harder,
just as well prepared and considerably cheaper,
the best grades of large coal (screened) sellin.g,
normally, at 13s f. o. b. Tyne ports, the present
price being 25s.
The American Offering.
It is quite true, of course, that “many North
.\merican coals,” the majority, in fact, “contain
a high percentage of volatile combustible matter.”
It is not true that such coals are only suitable
for use within short distances and not suitable
for ocean transportation, on account of risk from
fires. The amount of volatile matter in coal has
nothing, of itself, to do with the liability to
spontaneous combustion of any coal. What about
the continued use for the last three years of
Fairmont coal in Egypt? This coal contains as
hi.gh as thirty-eight per cent volatile matter. Of
the half million tons of Australian coal annually
imported into Chile and stored there in large
piles for months? Much of this coal runs over
forty per cent volatile. The writer has lately
received a sample of Australian gas coal as used
by the Gas Company at Valparaiso, which yielded
forty-three per cent volatile matter. All of the
coal used in South America for making gas is
high volatile coal — from thirty to forty-two per
cent volatile matter.
Some- of the low volatile (fifteen to twenty-two
per cent) coals in the eastern United States are
notorious for their liability to spontaneous com¬
bustion. At Key West and in the Isthmus of
Panama fires from spontaneous combustion are
by no means infrequent. Nor is Welsh coal free
from this trouble.
Other Big Differences.
As to physical characteristics, the structure of
the United States coals that have made up the
bulk of our overseas exports is quite different
from that of any of the Welsh export coals; the
latter are harder, have a different fracture and
their combustion characteristics are also differ¬
ent.
As to preparation of coal, comparisons are all
in favor of the British coals; the latter are more
carefully mined, the Welsh coals without the use
of explosives, all pick-mined by the best miners
in the world as regard carefulness, cleanliness
and avoidance of breakage or shatterin.g. They
are thoroughly cleaned, and the large coal screened
at least once and often twice.
The bulk of the United States coals shipped
to South America is run-of-mine, contains usually
from sixty to seventy per cent slack and the
cleaning or picking out of slate and other im¬
purities is often not given sufficient care and
attention.
The article states that this objection (liability
to spontaneous combustion) does not apply to all
North American coals; that this is shown by the
fact that “There are several coal depots, for
example, in the Carribean and West Indian ports
where North American coal is sold both for
bunker use and industrial purposes.”
This is true. In fact, the statement could be
made stronger (and more accurate) by sayin.g
that all of the coal depots at the West Indies
are handling United States coals exclusively.
But, this is due solely to the fact that United
States coals can be placed in these ports at a
much lower price than can British coals.
The succeeding paragraph in the article. “All
other factors being equal,” etc., does not give all
(Concluded on page 267.)
266
THE BLACK DIAMOND
[October 2
The teams which competed in the first aid contest of the Susquehanna Coal Company at Shamokin.
First Aid Field Day of Susquehanna Coal Company.
Shamokin, Pa., September 29. — {Special Cor¬
respondence.) — “Safety P'irst — First Aid — Com¬
pensation.” This was tlie keynote that Presi¬
dent Morris Williams, of the Su.scpiehanna Coal
Company, asked the 2,()(i() or more persons who
attended the h'irst Aid licld day at Fdgewood
Park, this city, to carry away with them, last
Saturday.
If there has been any doubt in the hard coal
regions as to the effect of workmen’s compensa¬
tion or first aid work, i\lr. Williams put all doubts
as to where the company he heads stands. More
than that, Mr. Williams, in his little talk to the
men interested in first aid work, stands out as a
declaration that anthracite operators, in the whole,
welcome the coming of compensation as a fur¬
ther safeguarding of the man underground. It
was so full of the meat of meaning that it can
he considered the big thing of the day. Mr. Wil¬
liams said :
"We are old worthies, the miners of twenty-
five years ago, those who have passed into the
Creat Beyond, to he asked in their day what
would he the success of first aid, safety first and
workman’s compensation, they would say that
such things cannot he. And yet here we have a
realization of all of those things that they thought
well-nigh impossible. You have a right to look
after your brother and see if he is safe. It is
the official’s first duty to see that you work in
safety, and it is your own duty to see that your
own work is done in safety.
"1 can well remember, when I was a hoy, the
case of a man who lived next door to me, who
was injured in a mine accident. I can still hear
his shrieks of agony when he was brought home,
and every move grated his broken hones togeth¬
er. I can also remember the distress of that
man’s family while he was being nursed hack to
health.
"I am proud to think that no man can fall in
this day without having aid, aid that means eas¬
ing his pain and caring for his broken bones un¬
til medical assistance is given. And, thank good¬
ness, after January 1st no wife or children will
have to get out and work and slave and the in¬
jured will no longer have to depend on charity.
Compensation will wipe all of that out.
Morris Williams Outlines the Company’s
Policy — Miners Invent New Devices for
Taking Care of Injured Mine Workers.
“It is nothing but common justice and what is
due to humanity.
"Compensation rounds out that which is neces¬
sary for the well-being of our employes. Carry
away with you this thought and ponder over what
it means — ‘Safety First — First Aid — Compensa¬
tion.’ ’ ’
The first aid work of the Susquehanna Coal
Company is one of the big events of the region.
Three special trains, one from Pottsville, from
Wilke.sliarre and from Lykens, brought the hun¬
dreds of miners who were proud of their ability
to care for the hurts of others to the field of
competition.
hive long rows of canvas spread across the
field, so that the spectators in the grandstand had
ample opportunity to see the work, was the
scheme employed by the judges to oversee the
bandaging.
In the course of the competition these rough
fellows “from down below” gave the gentlemen
of materia medica a few jolts in the way of
devices used in their work.
One man had invented a contraption for hold¬
ing an unconscious man’s tongue out to prevent
strangulation while in the state of coma. This
was in the form of a music clasp, to hold the
tongue, the plummet on a piece of string to -give
the weight and a piece of wood grooved on each
end to hold the teeth apart.
Another had fashioned a small slat into a spade¬
shaped stick with which to pass bandages .under
an inert form, the idea lieing that much pain
was caused a patient by raising him each time
that the bandage had to go under his body.
A third, Sam Thomas by name, deftly whacked
a cotton square bandage a few times with the
scissors, producing sixteen slits in all, so that
this triangular bandage was turned into eight
separate pieces, made a wrapiting for the hand
and a sling beside. And the doctors who ex¬
amined this ingenious wrapping declared that it
was not alone highly useful, hut a discovery
that the medical profession might well take
note of.
Even little tads of breaker boys had new short
cuts for the treatment of injured cases that they
discussed with the doctors and pointed out what
they thought to he betterments in methods of
treatment.
The company itself is keen on these things, for
there was on exhibition invalid chairs and cots
that proved to he improvements on former styles
used in first aid work, and a special stretcher that
has proved its value in carrying hurt men down
precipitous slopes in the mines.
The events for competition were as follows ;
Problems and Time Allowances.
ONK-.MAX KVKNTS.
1. A man is found unconscious with left hand in con-
tact with an electric wire. Heniove to a place of vSafety,
perform artificial respiration by prone method; dress burn
on palm of left hand. Time, ."> minutes.
2. A man is found unconscious on the gangway, over¬
come with gas; make a wrist carry to a place of safety,
jind restore, liy Sylvester method of artibcial respiration.
Time, .') minutes.
After a premature blast, a man is found with bolli
eyes tilled with dirt, and wound of the chin; lead to a
place of safety, and dress injuries. Time, 5 minutes.
TWO-MAX EVENTS.
1. Wound of the right temple, the left shoulder,
the left elbow, and of the entire left hand. Time, lo
minutes.
2. Simple fracture of the fifth and sixth ribs, right
side; laceration of all the fingers of the left hand. Time,
12 minutes.
Note. — Use Holler bandages for fingers only.
3. Sinijile fracture of the right collar bone; wound of
the jialin of the left hand, bleeding in spurts. Time, 10
min utes.
THHEE-MAN EVENTS.
1. Burns of head, neck and both upper extremities.
Time, lo minutes.
Note. — Use one layer of plain gauze to represent four
layers of picric acid gauze.
2. Compound fracture of the middle third of left arm;
simple f.'*acture of same forearm, and compound fracture
of the middle third of right thigh. Time, 15 minutes.
3. Sprain of the right knee; lacerated wound on back
of left wrist; lacerated wound of the middle third of left
thigh, bleeding in sinirts. Time, 12 minutes.
FULL TEAM EVENTS.
1. Fracture of the pelvis, with lacerated wounds of
side of the head, bleeding in spurts. Time, 12 minutes.
2. Compound fracture of the left leg; dislocation of
the right hip; laceration of the sole of the right foot,
bleeding in spurts. Time, 20 minutes.
iiihifivB
^^HUpHHPiQ
m
Mill
The crowds that attended the big first aid field day of the Susquehanna Coal Company at Shamokin.
THE BLACK I>IAM()ND
267
No. 14]
3. Fracture of spine; laceration of entire length of
right forearm; lacerated wound of entire length of left
foot and ankle. Time, 15 minutes.
Note. — Upon completion of dressing in each Full Team
Event, place on stretcher, call time, carry by stretcher
past reviewing stand and back to the station.
The hoys’ teams will compete on a separate one of
these prohkms, at the same time, for a separate prize.
SFECT.XL ()NE-.\I.\N EVENT.
A special prize will he given for the best original
adaptation of one or two triangular bandages for any
lirst aid jiurpose whatsoever.
Each team shall select which one of its memhers' spe¬
cial problem shall he entitled to enter this event. Time,
■i minutes.
The judgc.s of the events, Drs. J. B. Rogers of
Pottsville, I). M. Lake of Kingston and Dr.
James \V. Gest of Wilkesbarre, made the follow¬
ing awards: One-man events : First, Peniusylva-
nia colliery, outside; second. Hickory Ridge, out¬
side. Two-men events: First, Hickory Ridge,
inside; second, William Penn, outside. Three-
men events: Naticoke, No. 1 N. shaft. The spe¬
cial one-man event went to the team from No. 4
slope of the Naticoke colliery, and the big event
of the day, that for the full team, went to Hickory
Ridge, outside, composed of P. H. Maginnis, cap¬
tain ; Charles Williams, John Ginter, Peter Aler-
ta, Joe Stanshock, Henry Willard and Dave Lit¬
tle, subject. This last is for a silver cup and to
each member and the training surgeon is awarded
gold fobs.
In the breaker boys’ contest, the team from the
Pennsylvania breaker was first, and Hickory
Ridge second. Not a few of the spectators were
anxious to see the little fellows from the Lytle
colliery win. They organized six months ago,
and because their surgeon had been ill practically
all of their training was self-taught.
Dr. J. M. Maurer was the master of ceremonies
during the first aid contest and saw to it that the
whole program was worked through “as smooth
as glass.”
At noon guests, contestants (and those who
came with them) marched into the grove, where
luncheon was served. It could hardly be called
that — it was a grand picnic, with all of the good
fellowship that goes along with a picnic event.
At the conclusion of the first aid contests all
of the participants, headed by two bands, marched
around the grounds and wound up in front of a
speakers’ stand that had been erected in front of
the grandstand of the park. General Daugherty
acted as chairman, and the first short talk was
made by General Manager R. A. Quinn. He de¬
clared that the officials must stir themselves if
they hope to keep pace with the example set by
the men in safety work. Lie told the employes
that a lungmotor had been placed in each one of
the collieries with a competent man to use the
device in cases of accident. It was the purpose of
the company, he said, to spend both money and
time in getting anything that would aid in this
work. Figures cpioted by Mr. Quinn .shows that
of the 13,000 employes engaged in mining, the
following were connected with this work: Two
hundred instructed in use of the mine rescue
helmet, 325 in active first aid work, fifty who
were actively engaged in safety fir.st work and
475 officials and others who were engaged in
carrying out safety first work. From January 1
to September 1, 1914, there were thirty-two fatal
accidents and only seventeen in the same period
in 1915.
Resides President Williams, whose speech is
quoted above. Judge Fuller of Wilkesbarre gave
the “hoys” a talk.
.\n especially interesting part of the affair was
an exhibit of safety first and first aid appliances
arranged under the direction of Charles K. Klo-
man, chief clerk to General Manager Quinn. A
large streamer over this declared, “Over 1,000
men are employed to look after your safety. Help
them by being careful of yourself and your fel¬
low-workmen.” Various photographs were shown
showing devices for the betterment of safety in
the mines, a safety suggestion box, in which the
miners are asked to drop any pointers they have
to offer — blue prints of devices that have been
found to save life and limb and a collection of
photos showing what the company has been do¬
ing in making the homes of their employes more
comfortable.
The Steel Trade.
PHii.ADELPHtA, September 29. — (Special Corre¬
spondence.) — The whole of the east has gone
steel mad. That was the e.xpression of a leading
lianker and it seems well to take in the situation.
The taking over of the Midvale plant by the
Corey and Rockefeller interests, the Baldwin war
(jrder, the possibility of the control of the Cam¬
bria Steel Company passing from the control of
the Pennsylvania railroad, all have had their ef¬
fect upon the money market and have made his¬
tory in dollars and cents.
(jn the other hand the coal men of eastern
Pennsylvania have all looked upon steel for many
years as one of the guiding stars of the coal busi¬
ness, both because of the coal and its product used
in steel manufacture, and also from the viewpoint
of the car supply — for every car of steel takes
five cars to haul the ‘‘makin’s” to the furnaces.
The steel people have announced that they have
orders that will take them up to the first of Janu¬
ary, 1917, to complete. Just how much is the vol¬
ume of this business and in tangible figures as it
stands at the present time is shown by the follow¬
ing summary, which was compiled by the Public
Ledger from trade, technical and trade paper
sources :
“A summary of the volume of the business
shows that since the first of Septernber the total
rail orders placed aggregate 153,050 tons. Shrap¬
nel and other war contracts, now being figured on
by mills, call for a total of 250,000 tons of billets,
l)ars and blooms for deliveries early in 1916.
Structural steel contracts, amounting to 10,325
tons, were placed in the last seven days. During
this period the locomotive business jumped for¬
ward. The Baldwin Locomotive Works received
orders for fifty-three, and the Lima Locomotive
Company for eight. Buyers were in the market
for 45,000 tons of pig iron also, during the week.
“Approximately 75,000 tons of rails were con¬
tracted for within a week. The Southern Rail¬
way took 5,000 tons from the Pennsylvania Steel
Company, and the Lackawanna Railroad ordered
5,000 tons each from the Lackawanna Steel Com¬
pany and the Pennsylvania Steel Company. The
Seaboard Air Line closed with the Tennessee
Coal & Iron Company for 7,000 tons. The Rus¬
sian government gave the Lackawanna Steel
Company an order for 10,000 tons, and the
‘Clover Leaf’ system took 3,000 tons, dividing the
business with the Lackawanna, Cambria and the
Carnegie .Steel companies.
"Since the first of September the total rail ton¬
nage placed by roads in the United .States aggre¬
gated 111,100 tons, while the Alaska Railroad |)ur-
chased 4,95o tons from the Colorado h'nel I'v Iron
Company. These, with the Russian order and
small tonnages taken by the Carnegie Steel Com¬
pany, brings the business booked so far this
month up to 153,050 tons.
"Inquiries from makers of shrapnel and other
war supplies, which now are being ligured by
mills, call for a total of 250,000 tons of l)illets,
bars and blooms for delivery during the first three
months of next year. The mills are too busy to
ligure on 1915 deliveries now; but other iiupuries
are looked for before the current quarter enils, or
less than two weeks, covering from 250, ooo to
300,000 tons of steel.
“The American Brake Shoe & h'oundry Com¬
pany this week is inquiring for 20,000 tons of
shell bars, and Pennsylvania car builders are
seeking 50,000 tons of billets. Italy is in the mar¬
ket for 10,000 tons of nineteen and twenty-one
inch ingots. Smaller inquiries from shellmakers
total about 11,000 tons. It also was reported yes¬
terday that the French government agents at
Pittsburgh are endeavoring to close for 50,00o
tons of forging billets for delivery this year.”
The Argentine Market.
(Concluded from page 265.)
of the facts, to say the least. Whatever may be
the case now, “all other factors” have not been
equal.
There are other reasons than lack of ships
why North American coals have not secured a
stronger position in the Argentine — different
quality of coal, poor preparation, no storage or
handling facilities, no banking facilities, refusal
to give credit, lack of knowledge of conditions,
no agents to push the sale of coal, these have
all been a.gainst United States coals.
As regard the shipping question, it may all be
summed up in three words — no return cargoes.
It makes no difference what the nationality of
a tramp is and whether we own the ships or not ;
if return cargoes are assured, there will be no
difficulty in getting the ships.
Now, as the article states, this situation is
being .gradually improved, owing to the increas¬
ing commercial movement from the Argentine to
the Lhiited States.
The Need of Depots.
As the article goes on to say, one great need
of the United States coal trade in the Argentine
(and elsewhere in South .Xmerica) is a coal depot
at some central point, as well as dischargin.g
facilities.
Not every buyer can handle a full cargo and
even when they can are not willing to buy a cargo
unless they have tested the coal.
A storage depot would enable the Ihiited States
exporter to handle small orders and to get his
coal tested by different users ; spot coal could
be sold many times where a cargo could not.
The “peculiar situation” spoken of as bein.g ad¬
vantageous to our coals, namely, the refusal of
British coal shippers to sell coal to industries
controlled by Germans will, no doubt, be intensi¬
fied by the recent order of the British govern¬
ment not to allow coal to be exported to any
neutral country, e.xcept by special license for eacli
cargo.
The whole situation in the Argentine as regards
coal is well summed up in the last paragraph
of the article :
“If we can sell the Argentine users as .good
coal at the same or a lower price or an inferior
hut satisfactory coal at a commensurately lower
price and if we can guarantee the supply, with
satisfactory financial arrangements, then the said
users will always be ready to consider the i)ur-
chase of our coal.”
Retail Association News.
T. O. Rusbee, chairman of the executive com¬
mittee of a local retail coal association in Knox¬
ville. Tenn., reports that this association is
accomplishing much satisfactory work for the
dealers of that city. Meetings are held at regu¬
lar dates each month, at which time various mat¬
ters of interest to the members are discussed.
.Mr. Busbee promises a more complete report of
this association and local business conditions at a
later date.
.Secretary L L. Run\:in of the Illinois-W’iscon-
sin Coal Dealers .Association, reports the follow¬
ing firms who have recently become mendiers of
this association: R. J. Latter, Harvard, Ill,, and
the City L'uel Company, M. & C. Coal Comi)any,
.Miser & W ard, Samuel Raney, .Sr., J. R. Welsh
and Jrdm Whittemore, all of llecatur. 111. Meet¬
ings were held at Harvard .‘>eptcmher 24 and at
Dec;itur .September 27.
One of the prize winning ambulance teams of the Susquehanna Company.
268 _ THE BLACK DIAMOND.
Perry County First Aid Contest
(S/'cciul Corrcst’ondcncc)
On Wednesday, Septemljer 2r.’, a first-aid con¬
test was held in Pinckneyville, Perry County,
Illinois, under the auspices of the Perry County
h'air Association and the Illinois Mine Rescue
Station Commission. The day was ideal for such
an e.xhihition and a good-sized erowd watched
it with much interest as it was the first contest
of this nature to he held in southwestern Illinois.
The exhibition began about 3 :30 in the after-
A Team Contest.
noon and was opened by a demonstration to show
the use of rescue apparatus and first aid methods
in connection with a mine explosion. A gallery
had been constructed of timber and tar paper to
represent five rooms in a mine, Fi.g. 1. An ex¬
plosion was produced in the room farthest inby
and a notice of it was immediately communicated
to the foreman on the surface, wdro telephoned
for assistance, supposedly to the Benton Mine
Rescue Station, which is the station from wdiich
mines in the neighborhood of Pinckneyville
Individual Contest in Progress
would naturally be served. Very soon an auto¬
mobile dashed up with the rescue team from
Benton and was closely followed by an ambu¬
lance. The team quickly donned the oxygen
breathing apparatus, which was tested out in a
small chamber.
In this the fumes W'ere very thick, and this
demonstration was quite spectacular and showed
how men can penetrate a very smoky atmosphere
when wearing the oxygen apparatus. As the
apparatus was found to be in good working order.
the team of five took positions aloag the life
line and penetrated the smoky mine gallery to
the interior point where the explosion was sup¬
posed to have occurred, and very soon one per¬
son was brought put on a stretcher supposedly
injured and another supposed to be killed. Both
of these were placed in the ambulance and taken
away.
Before the explosion occurred, the day shift
went into the mine after instructions from the
foreman at the entrance and a very realistic
altercation took place in regard to certain duties
that each was expected to perform, and the way
in which the duty was to be performed.
The first-aid contest consisted first of a con¬
test between five teams as follows :
Big Creek Coal Company of St. David.
Wilson Richer Mine, Pinckneyville.
Mine Bureau of Inspection, Peoria.
Producers Coal Company, West Frankfort.
Majestic Coal Company, DuQuoin.
Big Muddy Coal & Iron Company, Herrin.
Gillespie Independent First Aid Association,
Gillespie.
The problem .given to all the teams was as
follows :
“Compound fracture of left thigh. Wound
three inches long in calf of right leg. Cut on
outer surface of right forearm with profuse
bleeding. Treat and carry patient on an im¬
provised stretcher twenty-five yards.” Ten
minutes was allowed for the contest.
Contestant Waiting for Judge.
The first prize was awarded to the team from
the Producers Coal Company, West Frankfort.
The teams from the Majestic and Big Muddy
Coal companies tied for second place and later
worked off the tie with the problem :
“Treat a person with a crushed pelvis.”
The team from Herrin, Bi.g Muddy Coal &
Iron Company was awarded second prize and the
team of the Majestic Coal Company from
DuQuoin the third prize.
'file problem in the “One Man Event” was the
following :
“Man has been struck by fall of slate, produc¬
ing the following injuries: Left ear torn off,
contused wound of right eye, lacerated scalp
wound four inches long on right side of head.
Treat.”
In this contest about eighteen took part and
three contestants tied, haviag the same mark.
To settle the tie another problem was given, viz.:
“Thumb and index finger cut off with severe
bleeding, showing bright arterial blood.” The
winners in this contest were the following :
1st. Messrs. Burnett and Yuell of Herrin.
2nd. Messrs. Nolte and Dunning of DuQuoin.
3rd. Messrs. Avoskee and Campbell of Pinck¬
neyville.
The officials of the contest were: Jud.ges, Dr.
G. F. Mead, Pinckneyville; Dr. Byford Webb,
West Frankfort; Dr. W. Daggert, DuQuoin;
recorder, H. I. Smith, Urbana; announcer, G. T.
Powell, Evansville, Indiana.
'I'he medals awarded were provided by the
Illinois Mine Rescue Station Commission and the
[October 2
Perry County Fair Association. The general
arrangements were made by Mr. Thomas Jere¬
miah, General IManagcr Willisville Coal Company,
a member of the Illinois Mine Rescue Station
Commission and also one of the managers of
the Perry County Fair Association. The local
arran.gements were made by Mr. Jas. Towal,
superintendent of the Benton Rescue Station, and
Mr. Chas. Swan, in change of the DuQuoin sub¬
station of the Illinois mine rescue service.
The work of the teams and of the individuals
was most creditable and showed careful training
and i)ractice.
Murray B. Courtright.
The announcement made by the Cortright Coal
Company two weeks ago that Murray B. Court-
right would become a member of that firm brings
into the limelight a man who was born and
brought up in the coal business. From the time
that he was “knee high to a grasshopper” Mr.
Courtright has been interested and closely allied
with the coal trade.
When he was a bit of a boy, fourteen years of
age, Mr. Courtright had his first taste of the
coal trade. He was for a time an office boy for
the Mitchell Coal & Coke Company at Gallitzin,
Pa., and soon afterward was made one of the
pay roll clerks. By close application and studious¬
ness he was advanced to assistant to the general
manager at the age of twenty.
For several years he enjoyed this position and
Murray B. Courtright.
succeeded to the title when the Mitchell com¬
pany became a part of the Pennsylvania Coal
& Coke Company. In the late nineties Mr.
Courtright branched out for himself and under
the firm name of M. B. Courtright & Co. he
operated five large company stores in Cambria
county.
In 1903, when the Commercial Coal Mining
Company was formed, he was active in its or¬
ganization, and was elected to the presidency of
tliat concern. This post he held until September
of the present year, when he sold out his inter¬
ests and retired.
During his career Mr. Courtright has been asso-
’ ciated with J. L. Mitchell, the well-known central
Pennsylvania operator, in various of his deals in
the west. He is now the vice-president of the
Keystone Mining & Manufacturing Company, of
Henderson, Ky., and also vice-president of the
Clover Leaf Coal Mining Company, of Coffeen,
Ill.
With the death of Frank Barton Courtright,
Mr. Courtright, who is a distant cousin and also
a brother-in-law, decided to return to the mer¬
chandising end of the eoal trade, and after eon-
siderable thought accepted the offer to become
allied with this firm.
The Central Fairmont Coal Company, Clarks¬
burg, W. Va., has just elosed a yearly contract
with a railroad company for the latter’s entire
requirements of coal and is now hiring about 100
additional miners. The company has already pur¬
chased additional live stock for the purpose of
taking care of the increased production. The coal
company recently added to its previous large fa¬
cilities at its Snake Hill mine in order to take
care of the new production, as well as its estab¬
lished trade.
269
No. 14]
THE BLACK DIAMOND.
Featuring Clean Coal.
Not long ago the suggestion was made that a
clean coal yard is helpful and that it is worth
while, from every standpoint, to keep dirt down
to a minimum. Since then the writer has seen a
dealer who is not only trying to maintain “good
housekeeping” in his yard, but who advertises
his coal, which is bituminous, as “clean coal.”
The announcements of this house on the sub¬
ject boldly assert that by using this particular
coal, a cleaner house, cleaner children, etc., will
result. The argument is out of the ordinary,
though based on more familiar points which deal¬
ers are constantly using, such as that their coal
is well screened, contains only a small amount of
ash, etc., all of which help to reduce the amount
of dust and dirt to the lowest possible figure.
“We have found that laying emphasis on
handling clean coal is a good feature,” said the
manager of this company. “We could stop by
saying that our coal is nice and blocky, and is
carefully screened, so as to eliminate nut and
slack, and that it burns clean, without clinkers,
and with little ash. But while those qualities are
all good, the net result to the consumer is less
dirt, and getting away from dirt is one of the
main efforts which housekeepers are bending
themselves to at present.
“In fact, the gas company in this town has been
attacking the use of coal for heating purposes
not on the ground that it is too costly, but that it
is too dirty. The householder is approached with
a proposition to get away from the dirt which the
gas manufacturer insists is inevitable with coal,
.^nd though gas is more costly, and requires the
installation of new and expensive equipment,
many people are won over to it simply on this
and the allied ground of saving labor.
“By talking about clean coal, and then by de¬
livering it — for we really do give enough atten¬
tion to this feature to be sure that we can do
what we promise — we show the consumer that
coal need not be dirty to handle, and that the
house of the coal user need not necessarily be a
repository for coal soot and dust.”
In this connection, it may be worth adding that
this dealer got a good deal of human interest into
his advertising by using the reproduction of a
photograph of his three youngsters sitting on a
big block of coal. The fact that the coal is clean
enough to enable children to play around it with¬
out getting dirty was a strong enough argument
to reach everybody, while the appearance of the
kiddies in a coal ad helped, of course, to draw
attention to it. A good illustration, in fact, is
always worth while as an eye-catcher.
Keeping Step with Progress.
Every coal dealer succeeds or fails largely as
he makes use of his experience. If he absorbs
it unconsciously, without attempting to classify
it in any way, or to reason toward certain logical
conclusions from the facts which he has gathered
in his daily work, his business is not going to
move forward rapidly. In fact, it is likely to get
so deep into the rut as to be buried. On the
other hand, the coal man who appreciates th^
fact that his business is “experience university.”
and that he has an opportunity to become a better
business man and a more successful merchant by
studying the questions that are presented to him
daily, is bound to make improvement and to have
a more profitable business.
Take, for instance, the little point of screening.
The consumer who buys a domestic grade of
coal, say lump or block, or whatever is offered
in a particular market, is of course interested in
getting it free from lower grades, and dealers
(iideavor to meet that demand effectively. One
dealer in a certain city always advertised that his
coal was “hand screened,” this phrase apparently
suggesting greater care, more expense — which
was a fact— and better results as to the grade
delivered to the consumer.
Now, had this dealer been like a great many
others, he would have gone ahead all his business
life screening coal by hand, and making a talking-
point of it. But he had an opportunity one day
to watch this process handled mechanically, and
he saw that it was not only done more quickly,
more economically and more easily, by reason of
being automatic, but that the result to the con¬
sumer was better, because the coal was screened
more accurately. The sizes were separated by
machinery much more exactly than it was possi¬
ble to do by hand.
The coal dealer lost no time in making use of
this item of experience, but promptly began to
look around for equipment by means of which to
screen his coal mechanically, as well as take care
of the other handling processes. And the results
have more than justified them.selves.
Get Up a Name Contest.
One of the most familiar advertising and sell¬
ing stunts in the book, and one which is used less
frequently in the coal business than anywhere
else, is a contest to choose a trade name for a
product.
The advantages of the plan are that people like
a contest, especially when there is any money at¬
tached, and will devote a lot of thought to study¬
ing out a good name. This being so, such
concentrated thought on the subject of coal — your
coal — will make a good many consumers so fa¬
miliar with it that they are very likely to think
of it when they go to buy. And, of course, it is
often possible to pick a much better name by
competitive methods than in any other way.
A certain well-known operator has recently put
on a contest in which retailers have been invited
to submit names for a new domestic coal which
the concern is to market. Why shouldn’t the
local dealer use the same idea, if he wants to
handle a brand of his own? He can start out by
describing the coal which is to be named, and of
course the description will be favorable to it,
and will serve the purpose of a good advertise¬
ment, as well as a contest announcement.
Very likely prominent local citizens — say the
advertising managers of the newspapers which
carry the ads concerning the contest — will agree
to serve as judges. If the stunt is given a suffi¬
cient amount of publicity, and if the prizes are
worth while, the dealer will get more suggestions
than he dreamed the limitations of human inven¬
tion would permit. If his office or yard happens
to be conveniently located he may require that
suggestions be brought there in person, instead
of mailed, another point which will help to fix
the concern in the mind of the contestant, who,
in most cases, is also a consumer.
The name contest idea has been used in a
single city during the past three months by a
shoe dealer, seeking a name for a brand of boys’
shoes ; a music store, looking for a new handle,
and a women’s garment shop, which wanted sug¬
gestions of a euphonious nature for a basement
store which it was starting. The rcstdts were
said to be excellent in all cases.
Enforce Discount Dates.
“One of the fundamental features of using a
cash discount plan,” said a dealer who has been
doing business on that basis for several seasons,
“is to insist on the time limitation placed on the
discount being observed. If this is not done the
plan falls to the ground, and you are allowing a
discount, in effect, on open accounts. The object
which the discount was intended to serve is de¬
feated, and you are simply passing over the extra
coin, which as likely as not is the larger part of
\our profit, without any recompense.”
The reference, of course, is to the operation of
the plan where the dealer does not sell the coal
c. o. d., but permits the customer to get the dis¬
count if the bill is paid within ten days from its
delivery. Ordinarily, on soft coal sales, a dis¬
count of twenty-five cents a ton is allowed, and
this is certainly sufficient to make it an object
for the customer to respond promptly. However,
there are some people who seem to like to “beat
the game” in one way or another, and they allow
the bill to run past the discount date, and then
remit for the net amount. The only thing to do
in that case is to send the check back.
A very good way to call the attention of the
customer to the fact that the discount is to be
applied only under certain conditions, which are
specifically set forth, is to use a rubber stamp,
exactly the width of the bill. The tonnage and
the price are indicated above, with the gross
amount given, and the bill then stamped in blank
below, as follows :
“This bill is subject to a discount of twenty-five
cents a ton or $ . if paid on or before .
The amount of the discount is entered in the
column at the right, and deducted from the gross
charge, while the date is written in as indicated.
There is no way for the customer to misunder¬
stand the terms of sale, and when he writes a
check to cover the charge he is bound to see
whether or not the date is within the time limit.
\Mien this plan is used, the customer who tries
to “put one over” by taking the discount can be
pulled up short, and can’t justly claim that he
isn’t getting all that is coming to him, either.
The Coal Dealer in Disguise.
A man who went about disguised, wearing a
wig and a false beard, would be considered by
the police department to be a suspicious character.
In order to merit the confidence and respect of
the public, one must be out in the open at all
times.
The dealer who has wagons which are so un¬
presentable that he is ashamed to put his name
on them is really disguising his business. Instead
of having an asset he is content to allow it to
lie a negative factor, at best, and a handicap, at
worst.
Now and then one sees a delivery outfit which
is almost a disgrace to the business. The animals
are not in condition, the harness is ready to fall
to pieces, the wagon is old and unpainted, and
is reinforced with a couple of pieces of old plank,
and the general appearance of the wagon is no
lietter than that of the garbage outfits that some
cities permit to be used in their name. When
you see a coal wagon of that sort, it’s dollars to
cents that the dealer hasn’t his name-plate on it.
He would be foolish to use it, because he knows
that the wagon doesn’t do him credit.
The dealer who makes a point of keeping his
delivery equipment, whether horse-drawn or
motor-driven, in the best possible condition has
a big advertisement, and one that is attracting
favorable attention to his name and business all
over the community in which he lives. His name¬
plate goes on the wagon-bed and on the harness
with pride. He doesn’t want to hide behind the
disguise of anonymity, because he has something
to be proud of.
If you have any delivery outfits that you are
ashamed of trade them off and get something
you can afford to own.
C. E. Bockus, president of the Clinchfield Coal
Ccjrporation, who was in New York from his
headquarters at Dante, Va., late last week, stated
that the coal trade in the southeast is now very ac¬
tive. Mr. Bockus finds that many cotton manufac¬
turers especially, who have heretofore refused to
make contracts, are now very willing to contract,
but arc finding that operators are not inclined to
take on any more business at the range of prices
that prevailed last spring, when most of the cot¬
ton mill contracts were made. As has already
been stated in these columns, the production of
the Clinchfield Coal Corporation for August was
(he largest in its history, and Mr. Bockus stated
that the production for September was running
even ahead of the August figures, and that fur¬
thermore, they had been compelled to take con¬
siderable coal from their storage pile at Bostic
to take care of pressing orders.
270
THE BLACK DIAMOND.
[October 2
FUBIiISHED EVERY SATURDAY BY THE
BEACR DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
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Entered at Chicago postoffice as second-class matter.
•Address all communications to
THE BEACH DIAMOND COMPANY (INC.)
Main office, Manhattan building, Chicago.
Branch Offices.
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Saturday, October 2, 1915.
INDEX.
Special Articles.
Page
The Keal Issue in West Virginia-Ohio Quarrel . 261
Philadelphia Harbor . 262
New Pier at Curtis Bay . 262
.Shipments of Anthracite Coal by Sires . 262
Year's Work of the -American Alining Congress.... 203
Haven't Coal Men the fiuts to Get Good Prices?.... 264
Putting American Coal on -Argentine’s Market . 265
First -Aid Field Hay of Susquehanna Coal Company- 260
The Steel Trade . 267
Retail -Association News . 267
Perry County First Aid Contest . 268
Murray B. Courtright . 268
Field of the Retail Dealer . 269
Editorial . . . - 2i0
News Local to Chicago . 272
Facts Which Hetermine Our Export Prospects . 273
Market Reports.
General Review and Chicago . 274
Pittsburgh. Duluth and St. Loiiis . 275
Cincinnati and Louisville . 276
Detroit, Birmingham and Denver . 277
New York . 278
Philadelphia and Baltimore . 279
New England, Buffalo and Omaha . 280
Hocking A’alley . 15
Mine Clearing House.
The Black Diaaiond proposes to con¬
duct a new department which might prop-
erl\- be called a clearing house of mine
ideas. This department will offer to prac¬
tical mining men an opportunity to ask
(juestions about things which bother them
and to engage in a free interchange of opin¬
ion with others connected with the coal
industry.
Since this department Avill deal with
neither the past nor the future, hut Avith
the present, we will print only the point of
the discussion. Therefore, the articles will
he short and their preparation should not
take much of the time of the busy mining
men.
Since the desire and intention is to treat
only of problems which arise right now,
we must keep in close touch Avith the mines.
To that end, all readers of The Bl.ack
Dlamond are urged to suggest — by ques¬
tions, if desired — topics upon Avhich they
Avant information. If any one cares to ad¬
vance information, so much the better. No
one need hesitate to Avrite because he does
not consider himself an experienced Avriter.
It is his experience and his ideas that Ave
want and not necessarily his literary style.
If the suggestion is good and, if necessary,
the editor Avill put the material into proper
form for publication.
-^hout every plant there are some jioints
that would interest others situated similarly.
There are points in operation or equipment
of Avhich the mining men are particularly
proud and to Avhich they attribute much of
their success. We Avant to knoAv about such
tilings.
Sujipose, for example, that your friend
John Jones visits you at the mine or that
you meet Bill Williams doAvn tOAvn at night.
If you have done anything particularly Avell
at the mine during the day, or are having
any particular trouble, you tell John or Bill
about it. If your electrician has devised
some neAv signal or other device, or if the
driver boss has a particularly good system,
you tell him and he, then, tells you Avhat is
going on at his mine. What Ave Avant you
to do is to think of The Black Diaaiond
as John and Bill and to Avrite to us just as
you Avould talk to them. In this Avay your
syccess or your trouble Avill be told not only
to one but to the thousands Avho read
The Black Diamond each Aveek.
Undoubtedly a number Avho have had
similar trouble Avill send in their experi¬
ences and you Avill thus get the benefit of
many men in many localities.
Try it at least and see Avhat happens. It
will take only a feAV minutes of your time
and may save you hours in future, even if
you get only one suggestion that is helpful.
To save time, Ave suggest that you send
letters addressed to “Correspondence De-
jiartment. The Bl-Ack Diaaiond, Manhat¬
tan building, Chicago, Illinois.”
A Charge to Keep.
^Vhat is about to be said is neither so¬
cialistic chatter, nor economic flubdub. On
the contrary, it is the sort of common
sense Avhich every real business man has
used Avhen fixing his policy. Recruits may
try as they may but they cannot get aAvay
from it.
There never has been and never Avill be
a case Avbere any man, by his OAvn effort
alone, got together a property or a busi¬
ness Avortb $100,000. It is inconceivable
and impossible that any man, by his OAvn
effort alone, should eA'er get together a
])roperty or a business AA’orth $1,000,000.
HoAvever, most of us think Ave are poor if
Ave control property Avorth $100,000 only.
In these days, a man thinks he is of little
consequence unless he controls a business
Avorth $1,000,000.
Regardless of the contempt in Avhich Ave
have come to hold such an enormous sum,
it still is true that $100,000 is an aAvful lot
of money: $1,000,000 is an aAvful lot more
money. Either sum is aAve-inspiring, be¬
cause it represents the accumulation of the
life effort of so many peojile. It took the
earnest and prolonged effort of many to
get so much property together.
A man, therefore, Avho is placed in
charge of so small a property as one Avorth
$100,000, or so great a property as one
Avorth $1,000,000 has entrusted to his care
the accumulation of the best effort of
many jieople through a long period of
time. His, therefore, is a sacred charge.
It is not a thing to be toyed Avith or to be
damaged by a Avanton or thoughtless act.
Seeing these things, no individual —
Avhether he poses as the “oAvner” of the
jiroperty or not — has any right to consider
any such accumulation of Avealth as a per¬
sonal asset to be dealt with as he sees fit.
For example, an individual posing as the
"OAvner” of a property occasionally gets
peeA-ed at a competitor for some imagined
offense. He decides to go to war, using
this precious property as his Aveapon. As
a matter of fact, is he at liberty to adopt
a policy Avhich must jeopardize if not
destroy this great Avealth and Avith it, of
course, the Avork of many people, when
the only purpose is to express his disap-
proA'al of some other felloAv?
We are, indeed, beginning to doubt
Avhether a manager has a right to accept a
price for the products of such a concern
as Avill jeopardize if not destroy that A-alue
and thus jeopardize or destroy the life
Avork of other people. This is especially
true Avhen Ave realize hoAV much money
belonging to other people is invested in a
modern business.
We are induced to believe that a busi¬
ness representing eA-en so little as $100,000
must be considered sacred, because it took
the life effort of so many to build it. There¬
fore, it cannot be ruled by individual
jiassion and prejudice, but rather by fixed
business principles Avhich have been built
up through centuries, during Avhich just
such matters as are here mentioned were
taken into consideration.
Breaking Even.
It is comparatively easy, if coal operator
goes about it properly, to make a profit and
certainly to avoid insolvency. However, to
do so, be must start right if he Avants to end
right. That is, he must finance to suit
profit.
We Avill say, for example, that market
conditions are such that he can be sure of
only ten cents a ton on his coal. Under
those circumstances he must finance and
develop on that basis and is safe on no
other. His method of figuring is about as
folloAvs :
Out of that ten cents a ton margin must
he taken enough to create a sinking fund
to retire the bonds. We Avill say that
amounts to three cents a ton. There must
be taken another amount, say tAvo cents a
ton, to pay the interest on the bonds. There
must be subtra;cted another amount, say one
cent a ton, for depreciation of plant and
equipment. That makes, all told, a deduc¬
tion of six cents a ton from the gross mar¬
gin. Six cents is three-fifths of ten cents;
therefore, three-fifths of all the money taken
in as margin goes to capital account. It
means that so far as the stockholders of the
company are concerned, three-fifths of the
property is not paying them a penny; three-
fifths of the Avork is done Avithout any re¬
turn to them. They are interested in only
tAvo-fifths of the plant.
This three-fifths and tAVo-fifths division
must, so long as the margin remains at ten
cents a ton, be carried through every de¬
partment of the mining corporation. For
example, the company we Avill say, has one
thousand acres of coal land. Three-fifths
of that, or six hundred acres, belongs to the
bondholders and must be set aside for that
particular purpose. Four hundred acres
alone belong to stockholders. If the oper¬
ators are going to be content Avith the ten-
cent margin, they must say that the stock¬
holders OAvn only four hundred acres.
If the tipple and top Avorks cost $100,000,
then $60,000 of that belongs to the bond¬
holders: therefore, the equity of that com¬
pany in that top Avorks is only $40,000.
As a matter of fact, the only way that the
stockholders can get any larger equity is
by increasing the price. If the average
margin is increased to twelve cents a ton.
No. 14]
THE BLACK DIAMOND.
271
the division between the bondholders and
the stockholders is fifty-fifty. If by any
species of legerdemain the profit can be
increased to eighteen cents a ton, the divi¬
sion is one-third to the bondholders and
two-thirds to the stockholders. That is, of
the thousand acres of coal land, the bond¬
holders would control but 333, while the
stockholders would control 666.
This is just a point for some of the oper¬
ators to figure over. They have been in the
habit of considering that they are masters
over the whole mine and could do with it
about as they pleased. They can do that
only if they overlook the rights of those
others who have an equity therein,
namely, the bondholders.
The safer course, to be sure, is to finance
on a less pretentious basis, and, therefore,
leave a larger margin for the stockholders
who take the big risk. That is, the bond¬
holders money is secured by the coal land ;
the investment always is safe. The stock¬
holders money is secured only by earning
capacity. To give the latter a chance,
financing should be more conservative.
That only is the road to safety and profit.
The Inevitable Results
Everv young man makes one mistake. He
starts life on the theory that the world be¬
longs to the young people or which is the
same thing to those who can move the fast¬
est. To him speed is all there is. He
startes to compete on speed alone. He
wants to throw out the middle aged and
the old men because they have begun to
slow down. Usually speed is his god and
he tries to make that the ruling force in the
business world.
Incidentally, he creates a lot of trouble
by it and only finds out his mistake when
the other and older men bring experience
and cunning to ofifset the advantage of his
sprightliness. Then the youngster finds
that he has only had one thing to his ad¬
vantage. There are other things which
make his one of little value comparatively.
That is, skill and cleverness which come
with experience can outwit mere ifnimal
alacrity at any time.
We get in business jmecisely the same
sort of an exhibition when a new mining
field starts to producing and shipping coal.
'I'he new field says that the older ones have
slowed down and are ready for the scrap
heap. Therefore, the old market belongs
to the young mine or the one that has the
greatest speed possibilities and hence the
largest productive capacity. Youth, there,
is expressed in low cost of production and
large yield. ,So the youthful coal mine
starts in on the same old quarrel with age
that has been seen since the beginning of
time.
And the young mining field soon runs up
against the same proposition as does the
young man. The older fields may have
slowed down a little, but with it they have
gained experience and hence skill. They
know more than one way how to do a thing.
They know, in a word, that you can get a
market without eternally cutting the price
to win it. They know, as a matter of fact,
that cutting of price to win the market is
the least valuable method of them all.
So, in the end, the older mine comes to
|)lay its accumulated cx])erience and its skill
in marketing against the tonnage record and
speed of the newer mining district. And
the latter gets a tremendous set-back from
which it takes vears to recover.
Many a young man who has relied on
speed alone has got such a tremendous
thrashing from the older fellow that he has
never gotten over it. Many of the new
coal fields which start out to appeal on speed
and low cost of production alone, have made
such a bad record for themselves that they
have never recovered. In fact, they have
committed themselves to low prices, which
they could not escape when the costs in¬
creased.
If a young mine wants to make money,
it should take advantage of the skill and
cleverness of the older fields in getting a
market and then taking advantage of its
speed of production to increase its profit
per ton. To adopt another policy is likely
to lead to a fight which always means the
destruction of something. In a fight one or
the other is whipped, and generally it is not
the veteran who loses.
Coke Making.
America has recently become interested
in coke making, for two reasons. One is
that anthracite coal will not satisfy all
the household demands. And, as the
people want smokeless fuel, coke is con¬
sidered the proper thing. The other is
that we need the by-products and hence
must have the gas from which to get
them. We do not care to go on forever
buying our by-products from other coun¬
tries.
Every chemist in America is figuring
on a new process of coke making. The
best theory on this subject is suggested
casually by H. A. Kuhn of Pittsburgh.
He says that the difficulty has been that
coke making was considered a chemical
process only. Hence it was undertaken,
mainly, by the chemists. They knew a
great deal about the composition of coal,
but they did not know an awful lot about
fitting the appliances to their chemistry.
Therefore, we were long on chemistry
and short on mechanics. It seems, from
what he has found out, that we got a
certain mechanical process which would
make the coke. We even got a process
which would give us a certain amount of
gas. But we have sacrificed most of the
valuable by-products because of our
clumsy mechanical system. He says that
the chemistry of coal is pretty well
known, hence the thing we need is the
proper mechanical appliance.
He has not worked out his plan in de¬
tail, but his theory is so sound that we are
rather inclined to expect some big results
when he has had a chance to experiment.
The Miners’ Debt.
I'his week there was a meeting of the
miners in the Blocking Valley district in
( )hio. The operators were contending that
the miners union had given better terms in
eastern Ohio than were previously given in
the Hocking Valley district. They asked
for better terms.
The miners would not consent to a read¬
justment of the wage scale. While this was
under discussion. International Secretary
Green of the union appeared before the
miners and made a long statement. He did
not say as much, but his tone seemed to
indicate that he would advise the miners to
make concessions and thus allow the mines
to continue to run, rather thaii the miners
go out on a strike, or the operators be forced
to a lockout.
His pointed statement was that the Inter¬
national Union is notv in debt to the extent
of one inillion dollars and cannot be ex¬
pected to pay any benefits.
The point of interest to all coal men is
the admission of the union officials that the
organization is in debt one million dollars.
A great many miners have had no work at
all or .short-time work for the last year.
Naturally they have ])aid a very small
amount of money into the union treasury.
At the same time the union has been spend¬
ing money lavishly on various strikes and
propaganda. The complete exhaustion of
the treasury and the resort to borrowed
money is a natural consequence.
Now the miners in different sections are
embarrassing the international union by tak¬
ing such stands as the Ohio miners have
just taken. This promises to keep the
union poor through the winter months.
'I'he big question in view of these facts is :
What will be the disposition of the union
next spring at the expiration of the wage
contracts? With no money in the treas¬
ury and with a big debt hanging over its
head, is the union in a position to try to
fight the anthracite and bituminous fields
at the same time? There is one ])oint
which must not be left out of considera¬
tion when discussing labor pros])ects.
Payable in Dollars.
This has been a remarkable week if one
views it from the standpoint of develop¬
ments in the European war. On the firing
line the l)ig thing was the change of policy
by the allies. Recently Lord Kitchener de¬
clared that “the Germans have shot their
bolt.” Eollowing that declaration the allies
made an assault upon the German forces
and made astounding gains the first few
days.
The newspajjers on Monday and Tues¬
day made the announcement that the allies
have negotiated a loan of $500,000,000 to
mature in five years and to bear interest at
five and one-half per cent. It is to be con-
vertable at that time at the option of the
investor into bonds bearing four and one-
half per cent interest. Payni&nt is to be
made in dollars.
The crux of the whole situation is the last
statement, namely, that “payment is to be
made in dollars.” Everyone who has done
any export business or who has tried to do
any, appreciates what this means. Here¬
tofore, when the American wanted to buy
or sell abroad, he had to take his American
dollars and buy pounds sterling. Then he
had to take the pounds sterling and buy the
coin of the place where he expected to do
business. Always there was one exchange
to pay. Sometimes there were as many as
four or five exchanges to i)ay. This con¬
stant payment of exchange ate into possible
])rofit of the American concerns heavily.
Indeed, often the Englishmen could take the
business by just the margin that we were
handicapped by the heavy payment of ex¬
change.
The terms on which the allies are going
to borrow money from us are most favor¬
able to the United States in that they de¬
throne the pound sterling and enthrone the
American dollar as the leading factor in
the international money market. Recent
changes have indicated that the United
States is now the lender nation of the
world. The establishment of the American
dollar as the foundation of exchange has
jiroved that point.
272
[October 2
News Local to Chicago.
W. E. Rotliennel has been appointed local sales
agent by Jewett, Bigelow & Brooks.
I. eo Romanski. president of the Atlas Coal &
Coke Companj^ was in Coluiribiis, Ohio, on Tues¬
day of this week.
Ernest C. Pratt, northwestern sales manager
for the Purity Coal Company, with headquarters
in Alinneapolis, was a Chicago visitor this week.
At the recent meeting of the American Mining
Congress, C. M. Aloderwell, president of C. AI.
Aloderwell & Co., was elected one of the di¬
rectors.
IT. E. Patrick, general sales agent of C. Al.
Aloderwell & Company, left on Tuesday of this
week for Sioux Falls, intending to go from there
to Alinneapolis. He will spend, in all, several
days in the northwest studying conditions.
The E. Puttkammer Coal Company have taken
over the entire output of the Glenridge mine in
Alarion county, Illinois. The operation has a pro¬
duction of 2,500 tons per day, with shipping fa¬
cilities over the Burlington and Illinois Central
railways.
J. K. Dering, whose interest in live stock is
second only to coal, spent a portion of the week
at Waterloo, la., attending the National Dairy
Cattle Congress. On account of the hoof and
mouth disease, which is so prevalent, Mr. Dering
was unable to exhibit any of his prize herd.
There is a much better feeling among dealers
in the steel belt around South Chicago, Gary,
Hammond and Harvey. Dealers report all mills
working full time with every able-bodied man on
some firm’s pay roll. This is encouraging, as
this section has been a very weak spot on the
credit maj) for over a year.
It is now said that F. S. Peabody will soon be
elected president of the Pennsylvania Coal & Sup¬
ply Company of Milwaukee. This concern is
undergoing a reorganization. Among other
things the capital stock will be increased to
$1 ,.'500,000, or an increase of $610,000. It is pro¬
posed soon to build a new dock, the estimated
cost of which is $150,000.
Captain T. A. Lemmon, vice-president of the
Chicago, Wilmington & Franklin Coal Company,
is in Washington this week attending the fiftieth
anniversary of the grand review of the armies
of the Potomac and Tennessee at the conclusion
of the Civil War. Captain Lemmon is a mem¬
ber of Columbia Post No. 706, of the Grand
Arm)', and is representative of that post at the
VV’ashington review.
William J. Dillon maintains that the mild
weather of the past month will in the long run
outweigh the temporary disadvantage caused by
the cessation of dealers buying. “Farmer” Dil¬
lon gets his crop information first-hand from his
Libertyville farm, where the corn crop has bene¬
fited immensely by the warm September weather.
Air. Dillon is of the opinion that the added
wealth to the agricultural community will even¬
tually redound to the benefit of the coal trade
in the season.
Alembers of the coal trade were surprised this
week to receive announcements that A. J. Ma¬
loney, district sales agent of the Chicago, Wil¬
mington & Franklin Coal Company, had married
AIiss Caroline Frances Breider of 3911 Gladys
avenue. The bride is the daughter of Air. and
Airs. Philip John Breider. Mr. and Mrs. Maloney
are now away on a short honeymoon trip, to be
gone until October 5th or 6th. Cards announce
that they will be at home after November 15th at
7, 39 Irving Park boulevard.
meeting of the Chicago Coal Merchants’
.\ssociation was held on Tuesday afternoon of
this week. Secretary Kendall reported the names
of seventeen new members who recently have
been received in the organization. This was in
addition to eleven members recently received.
President Elmstrom called attention to the fact
that a short time ago the association had set two
hundred members as the mark it wanted to reach.
He called attention to the further fact that now
the membership has reached two hundred and ten
and he says that the new goal of association is
two hundred fifty members.
E. D. Scott, western sales agent for the Skeele
Coal Company, speaking of anthracite market
conditions, says that never in the history of his
twenty-two years in the coal trade has he noted
the indifference of both consumers and dealers to
their coal requirements that has applied to the
trade for two months. Air. Scott figures this is
due to the mind of the householder being occupied
elsewhere, particularly with the European war,
and as a result coal has been left entirely out
THE BLACK DIAMOND.
of his calculations. The only thing that will
change this state of affairs is a little frosty weath¬
er, which will cause a rush to dealers’ yards
by practically all the coal-using public.
At the regular meeting of the Chicago Coal
Alerchants’ Association on Tuesday afternoon a
suggestion was made that it might be a good
thing to have some kind of a dinner for the coal
men, particularly as a means of welcoming into
the association the new members and in a sense
a sort of rally to start interest in the associa¬
tion work for the fall. It was agreed that the
committee on speakers should arrange for a ses¬
sion some evening down town and to arrange
for it in the near future. Definite announcement
of plans will be made shortly, as the committee
will get together the latter part of this week.
The committee on speakers consists of Leo
Romanski, Arthur AL Hull and George H.
Cushing.
The producers of coal in Sangamon county,
Illinois, are not exactly satisfied with being
classed as “Springfield district,” which they say
now is too inclusive. That is, the operators in
Sangamon county are abandoning the old policy
of getting rid of the coal regardless of price, but
on the contrary are getting the price first before
letting go of the coal. They rather insist that
maybe all of the producers in the four counties
included in the “Springfield district” are not of
the same opinion. As emphasizing the distinction,
Sangamon county operators this week put out a
new price which named $1.75 on lump, $1.60 on
egg and nut, and $1.50 on steam lump. Inci¬
dentally the Sangamon county operators are the
only ones in Illinois who on the first of October
announced any increase in price.
On Thursday of this week, F. C. Honnold
made the announcement that he had just received
word from Rush C. Butler that the Interstate
Commerce Commission has refused to interfere
with the establishment of advance rates on coal
as ordered in the recent decision of the commis¬
sion in the western rate case. These new rates,
therefore, went into effect on Thursday of this
week. Dr. Honnold says that the matter of the
petition for a rehearing of the case is to be taken
up by the Interstate Commerce Commission on
October 4th. It will be recalled that recently the
railways asked the commission to grant a rehear¬
ing on all commodities on which the rates had not
been advanced. On the same day the coal oper¬
ators and the Public Utilities Commission of Illi¬
nois also petitioned the commission to grant a re¬
hearing of the rates on coal. The operators were
represented in this hearing by Mr. Butler, who
has advised Dr. Honnold as we have indicated.
The weather sharps in the Old Colony build¬
ing have watched the weather with keen interest
over the 21st of September to know just what
the weather for the succeeding three months is
going to be. They have the theory, it will be
remembered, that the direction of the prevailing
wind at the time the season changes indicates
what the weather is going to be for the next
three months. They found that up until four
o’clock on September 20th the wind was out of
the southeast, then it changed definitely into the
northwest and remained there for two days.
This would indicate that the prevailing wind of
the next three months is going to be out of the
northwest and therefore the weather is going to
be cold and dry. This gave a great many of the
coal men a good deal of comfort since there
was a belief that owing to the cold wet summer
we would likely have a warm dry fall in order
to about strike the average of conditions.
Whether or not the weather man concides with
the opinion of the weather sharps in the Old
Colony building remains to be seen.
B. L. Shepard, secretary, announces that the
final meeting of the Coal Trade Golf Associa¬
tion will be held on Friday, October 8, at the
Exmoor Country Club, Highland Park, Ill. The
schedule of events and pairings in the final
matches, all of which will be at thirty-six holes,
follows: Black Diamond — Championship, R. A.
Gardner and E. T. Franklin ; president’s trophy,
presented by Air. Henry P. Pope, president of the
association; G. S. Patterson and E. F. Smith;
Lemmon trophy, presented by Air. C. F. Lem¬
mon, H. Al. Hall and N. B. Birkland ; Hostler
trophy, presented by Air. C. E. Hostler, G. S.
Wood and W. C. Hill. The event for the day’s
play will be an eighteen hole medal play handicap
class tournament, choice of either morning or
afternoon round. Class A, h.andicaps, 1-10; class
B, handicaps, 11-20; class C, handicaps, 21-30.
Prizes for low gross and low net of each class.
Every one will be expected to stay to dinner after
which the ceremony of awarding of the prizes and
trophies will take place. Trains leave C. & N. W.
R. R. 8:00, 8:15, 9:15, and 11:00. The eight
o’clock is the best as it is a very fast train, arriv¬
ing in Highland Park at 8 :40. As this is the final
event of the year a full attendance of all members
is requested.
In the issue of the Chicago Tribune of Thurs¬
day morning, Henry Al. Hyde had an article
on the compilation of the new Illinois laws in
which he calls attention to the fact that the new
wash house law is inoperative because it was
only passed by one branch of the assembly. The
airious thing about this, according to Air. Hyde,
is that the law apparently was passed and re¬
ceived the approval of the governor, although it
was officially acted on by only one branch of the
assembly. On this subject. Air. Hyde says: “This
particular bill provided for the establishment of
a certain number of wash rooms in connection
with each coal mine in the state. The bill went
to the governor and actually received the ap¬
proval of the chief executive of the state. At
least one coal mine owner, who had heard indi¬
rectly that such a bill had become law and who
did not wish to suffer the penalty which would
follow the man who failed to obey it, made a des¬
perate and determined effort to get a copy of it.
Finally he discovered that though the bill had
been announced as passed and had received the
august approval of the governor, the great care
exercised in compiling the session laws, had re¬
vealed the startling fact that it had actually been
passed by only one of the two houses of the
general assembly and was consequently not a law
at all. Since that discovery saved him a matter
of $2,000, he is inclined to feel that the long de¬
lay may have some justification.”
New York Clambake.
The annual clambake and outing of the New
York Coal Alerchants Association was held on
Thursday evening, the 23rd of September, at
Tallapoosa Inn, off LRlham Bay on Long Island
Sound.
It was a very bright crisp afternoon and the
attendance was perhaps the largest that has been
witnessed at any of these annual events in recent
years. The coal men gathered shortly after noon,
and for two hours enjoyed a game of baseball.
Shortly after three the bake was served, and
this kept everyone fully occupied until five o’clock.
The bake was voted on all hands to be the best
that has yet been given by the association. The
menu consisted of clams, both hard and soft, in
unlimited quantities, fish, spare ribs, chicken,
sweet potatoes, lobster, corn, with watermelon for
the finish.
Among those present were : William Brennan,
AL L. Bird, Bradley & Mahoney, G. D. Curtis,
Henry Breunich & Son, G. R. Esdorn, Fred.
Kothe, William H. Dartt, Charles Haaren, Leo
Haaren, John Dobbins, Leo Dobbins, Thomas F.
FarriMl, William J. Shea, A. J. Forman, Joseph
Gordon, John J. Gordon, Arthur F. Rice, Warren
.A. Leonard, John Leonard, Benjamin B. Alarco,
Julius Alarco, Henry Meyer, Mr. Miller, James
Graham, Fred. Rheinfrank, Edward Robitzek,
Edwin Robitzek, Augustus Robitzek, Fred.
Schwiers, Roderick Stephens, H. J. Fraser, N.
L. Stokes, L. H. Spier, Louis S. Weber, E. AIc-
Loughlin, William WTber, Alva Trimmer, Theo¬
dore S. Trimmer, Percy Thorn, Fred. Gehrung,
George J. Eltz, Charles Thedford, James Thed-
ford, Henry G. Streat, Jr., Charles F. Davies,
Cornelius Cadmus, Walter B. Johnson, W. S.
Rowland, Charles S. Smith, J. H. Abbott, Joseph
Wright, Thomas J. Howland, R. AL Bryan, J.
P. Alaloney, Charles Randolph, John J. Ferranto,
F. Gormley, George Haiss, Gardner Pattison,
E. R. Brevoort, Daniel Anthony, C. W. Proctor,
F. J. Honan, G. E. Dickinson, Ralph Grover,
Oscar H. Chellborg, John Carroll, Abel Alischel,
Archie Davidson, Daniel Brodhead, E. Kahn, W.
F. Armstrong, A. E. Aletlach, George Klippel,
Drew Ditmar, Henry Stevenson.
Miners Are Imprisoned.
WiLKESB.\RRE, Pa., September 27. — Eleven mine
workers were entombed today at the Coaldale
colliery of the Lehigh Coal & Navigation Com¬
pany as the result of a fall of rock.
The fall was caused by a heavy blast and ex¬
tends for fully 300 feet, blocking the single pas¬
sage leading to the chamber in which the men
were at work. Hope of reaching any of the men
alive has been given up.
O. J. Watt, a well-known flour and feed dealer
of AIa,son City, la., has entered the coal business.
He has a modern yard under construction on the
Chicago & Great Western Railway, where he will
handle a complete line of bituminous coals.
No. 14]
THE BLACK DIAMOND
273
Facts Which Determine Our Export Prospects.
The Export Situation.
American exporters are just now facing a
shortage of vessels for taking cargoes, and an in¬
crease in rates, especially to the Mediterranean.
Rates to Italy have advanced 4s. in the past week
and also to South American ports from Is. to 2s.
.As was anticipated, steamers that have here¬
tofore been offering for coal cargoes, are now
being attracted to grain and cotton, while a great
fleet is required in taking war munitions, which
was not such an important factor up until the last
few months. When one considers that Russia is
now shipping vast quantities of steel rails, loco¬
motives, railroad cars and all kinds of war muni¬
tions from New A^ork to such distant ports as
Archangel and Vladivastok, it is conceivable
just how tonnage can be diverted by these long
time voyages.
Inquiries for foreign coal shipments are still
very heavy.
New York coal men were very much interested
on Wednesday at the announcement which came
from Washington, which was in the shape of a
cable from American Consul Skinner at London,
stating that the Bristol Channel had been closed
to navigation by the British government until
further notice, giving the probable presence of
German submarines in the vicinity as the reason.
Further cables are expected to throw some
light on this drastic order. The prohibition of
navigation in the Bristol channel would mean the
tying up of all of the Welsh coal ports, and this
would in turn greatly hamper the French and
other governments that are just now relying upon
Wales to supply them with fuel.
Coal men who know the situation of the Welsh
coal docks and are familiar with them, say that
were the German submarines able to get close to
the coal ports, say one as important as Cardiff,
that they could do enormous damage to the
docks.
September exports are not expected to show
up as well as for August or the two previous
months due to the shortage of vessels.
Coal Trade at Cienfuegos.
R. M. Bartleman, American consul at Cien¬
fuegos, Cuba, writes The Bl.\ck Diamond under
date of September 22, as follows :
“The coal consumption at this port has not
been reduced by reason of the war. General busi¬
ness has been better by twenty per cent. Only
American coals are imported here. Prices vary
during the year, $1.50 per ton. Price per ton
here today is $7.00.
“We have but one dock here (Cuban Central
Railway) which is some 700 feet in length. The
depth of water at dock is twenty-five to twenty-
seven feet. There has been no change in this
dock. Imports here for the calendar year 1914,
all from the United States, were 460 tons of
anthracite, and 76,172 tons of bituminous.”
Soft Coal Exports.
Hampton Balti- Phila-
inn — ■ Roads more delphia Total
August . 294,180 52,786 55,786 402,635
September . 432,685 128,178 58,545 619,408
October . 196,423 85,152 57,042 338,617
November . 163,550 75,998 58,136 297,674
December . 132,946 50,712 51,037 234,695
1915—
Tanuary . 117,607 89,779 40,648 248,034
I'ebruary . 150,417 79,029 32,794 262,240
March . 262,687 76,888 48,646 339,575
Ai)ril . 444,239 193,293 60,207 697,739
May . 4 45,917 232,866 107,645 786,428
Tune . 608,599 305,917 122,379 1,036,895
Tuly . 712,955 258,585 167,321 1,138,861
August . 628,995 210,760 154,965 994,720
Total . 7,406,920
For the calendar years 1913 and 1914, exports
from the above named ports were around 4,200,-
000 tons for each j-ear.
A small quantity of bituminous is also exported
from New York and several of the other Atlantic
seaboard ports. Charleston will now become a
factor, as new coal piers have recently been put
in operation there.
Foreign Freight Rates.
W. W. Battie & Co.’s Produce Exchange, New
A’ork, report as follows under date of Septem¬
ber 27;
The freight market is stronger than a week
ago, and steamers are in demand for grain at
higher figures than recently paid. It is rumored
that three steamers have been chartered for coals
to the west coast of Italy at 46s, and but few
steamers are offering for coals, as the owners
prefer grain at rates now obtainable, but occa¬
sionally we have boats willing to accept coals at
less than market rates.
We would quote freight rates on coal by
steamer as follows:
West coast of Italy, about 46s; Marseilles, about 44s;
Barcelona or other good Spanish ports, about 43s (Span¬
ish dues for account of cargo).
Note. — Charters for Italy, France and Spain read:
“Lay days to commence on steamer’s arrival at or off
port of discharge, Is per net register ton per day de¬
murrage.”
Montevideo, about 34s; Buenos Aires or La Plata,
34s to 34s 6d.
(Above quotations on Plate coal by British steamers.
Neutral steamers are more difficult to obtain and the rates
are always higher.)
Rosario, 35s to 36s; Rio de Janeiro, 34s 6d to 35s;
Santos, 35s to 36s (consignees paying docas dues).
Valparaiso or Callao, $7.25 to $7.50; Havana, $2.50 to
$2.75; Cardenas or Sagua, $2.75 to $3; Cienfuegos, $3 to
$3.50; Port of Spain, Trinidad, about $3.75; St. Lucia,
$3.50 to $3.75; St. Thomas, $3.25 to $3.50; Barbados,
abotit $3.75; Kingston, $2.75 to $3.25; Curacao, $3.25 and
p. c.; Santiago, $2.75 to $3.25; Guantanamo, $2.75 to
$3.25; Demerara, $5 to $5.50; Bermuda, about $3; Vera
Cruz, $3.50 to $3.75; Tampico, $3.50 to $3.75.
Recent Coal Freight Charters.
Steamer Unbe Mendi (Span.), Baltimore or Virginia
to west coast Italy, coal, p. t.
Steamers Caterena Accame (Ital.), and Mar Cor (Ital.),
Baltimore to Genoa, coal. p. t.
Steamer Thrasyvoulas (Greek), Baltimore or Virginia to
west coast Italy, coal, 42s 6d, October.
Steamer Kankadee, Baltimore to Buenos Aires, coal,
p. t.
Steamer Moldegaard. Philadelphia to Havana, coal, p. t.
Steamer Grekland (Swed.), Viiiginia to River Plata,
coal and coke, p. t.
Steamer Anna (Nor.), Philadelphia to St. Johns, N. F.,
coal, p. t.
Schooner John B. Biemiller, Philadelphia or Baltimore
to Point-a-Pitre, coal. $3.75.
Schooner Fannie Palmer, Baltimore to San Juan, P. R.,
coal, p. t.
Steamer Nairn (Br.), Hampton Roads to Suez, coal,
p. t.
Steamer Chasehill (Br.), Baltimore to Genoa, coal, 42s.
Schooner Annia, Philadelphia to Casilda, coal, p. L
Schooner W. H. Summer, Philadelphia to south side of
Cuba, coal, p. t.
Schooner Frances M., Philadelphia to Cay Francis,
coal, p. t.
Bark San Gieuseppi (Ital.), Baltimore to Genoa, coal,
p. t.
Schooner William Booth, Philadelphia to Calais, coal,
$1.30.
Philadelphia August Exports.
Official figures show exportations of coal from
Philadelphia during the month of August, 1915,
as follows :
Anthracite, Bituminous,
Country —
France .
Tons
. 884
Tons
26,315
Italy .
6,046
10,686
Spain .
16,923
13,260
731
Bermuda .
. 2,950
Costa Rica .
3.105
801
Cuba .
Fr. W. Indies .
Brazil .
Fr. W, Africa .
56,188
7,164
4.489
5,792
Total .
154,965
Export Trade Briefs.
The Cardiff correspondent of the Liverpool
(Eng.) Journal of Commerce writes to his paper
as follows : “This week Lord St. Aldwyn, the
independent chairman of the Coal Conciliation
Board, awarded the miners an increase of twelve
and one-half per cent on the new standard of
wages. This makes an increase of seventy-two
and one-half per cent above the old standard,
whilst it must not be forgotten that the miners
also draw a war bonus of seventeen and one-half
per cent. The absolute minimum wage of a
W'elsh collier now stands at two pounds, fourteen
shillings and eleven and a quarter pence (nearly
$14) per week. They are the highest paid work¬
men of their class in the world, and on many col¬
liery wage sheets eight pounds ($40) and nine
pounds ($45) per week is in no wise unusual.
The contract season is rapidly approaching and
under normal circumstances operators would be
testing the market for the probable ideas as to
prices for the delivery of coals over the ensuing
year. The market outlook is, however, charged
with so much uncertainty that few collieries care
t« seriously consider contracting over a long
|)eriod ahead. In times of peace, market condi¬
tions over a period ahead are gauged with a
nicety that speaks volumes for the perspicacity of
those sellers whose function it is to arrange for
the disposal of a large portion of their future out¬
put. At the present time values are depressed.
and naturally efforts are being made to cover
business recently fixed up. Collieries, however,
are cautious and very little has been done. So
far, however, indications point to the fact that
substantial advances are anticipated upon expir¬
ing contracts. With the high rate of wages and
colliery costs, it is imperative for the collieries to
increase their prices in order to make a return to
the proprietary. Advances of from seven
shillings to eight shillings per ton above expiring
contracts have been indicated, and with the great
uncertainty as to the probable duration of the
war and the question of tonnage supplies mer¬
chants were disinclined to commit themselves for
long periods ahead. One thing is absolutely cer¬
tain ; Consumers must make up their minds that
coals will cost them more.”
The Bureau of Foreign and Domestic Com¬
merce, Department of Commerce, has just re¬
ceived from Consul Lathrop at Cardiff a summary
of the financial year to June 30, 1915, for a num¬
ber of collieries in Wales. Insoles, Ltd., whose
average output is 800,000 tons, dropped to 545,000
tons, but its annual dividend was increased from
six per cent to ten per cent, because its profits
per ton increased from fifteen to twenty-nine
cents. The Fernhill Collieries, Ltd., continued
its sixteen per cent on common stock, although its
output of 550,000 tons was 118,000 tons less than
the year before. Its profits, however, increased
from $156,000 to $191,000, and profit per ton
mined increased from twenty-three to thirty-four
cents. The Windsor Steam Coal Company raised
420,000 tons of coal at a profit of fifty cents per
ton. This concern has been doing development
work, but has now paid off arrears and can
henceforth apply dividends to common stock.
Advices from Genoa state that considerable de¬
lay is being experienced by vessels arriving there
with coal cargoes. The congestion is very serious
and there is at present little to warrant the hope
of immediate improvement. The cause of the
failure to give discharge is assigned to the Italian
government. They ordered large quantities of
coal for delivery at Spezia and to augment the
discharging equipment of that port, com¬
mandeered 200 lighters from Genoa, together
with a large number of wagons. Vessels dis¬
charging at the latter port have to bear the brunt
of the shortage in lighters and rolling stock.
Berths are obtained without delay, the contrary
being the case at Spezia where big cargoes of
■American coal have arrived. Owners, therefore,
should be careful to see that their demurrage
clauses protect them. A cargo of North’s navi¬
gation is reported to have been sold at fifty-six
shillings and Cardiff seconds are about the same
price. Newcastle best gas coals are quoted at
fift}' shillings and seconds two shillings less, while
there is a keen demand for foundry coke and
business has been effected at seventy-one shillings
c. i. f.
Doctor Leineweber, an assistant librarian at
the Congressional library of Washington, who re¬
turned from Russia last week, said that Warsaw
was lost to the Russians through the breaking
down of the Russian railway system, due to a
shortage of coal. Mr. Leineweber said that trains
would be running along, and the locomotives
would go dead because there was not sufficient
coal on the tenders to keep them going. In some
instances tracks would be blocked three days be¬
fore a wheel would be turned. This kept the
Russians from securing ammunition, although
there appeared to be ample munitions that could
not be moved, due to the breakdown in the trans¬
portation system.
Prices on patent fuel (briquettes) at Cardiff
are very strong. Quotations range from thirty-
three shillings to thirty-five shillings. The major
portion of the production of patent fuel in Wales
is now being taken by the government, it is stated,
because these briquettes have earned the great
reputation for smokelessness, high calorific power
and great resistance to climatic changes. Welsh
producers, therefore, have a very small surplus
for disposal above their government contracts.
Lamberts Bros., Ltd., the well known coal ex¬
porters of London and Cardiff, who are repre¬
sented in America by the Smokeless Fuel Com¬
pany, have declared a dividend of ten per cent
and a bonus of ten per cent for the year ending
June 30, making twenty per cent. Dividends for
this company for five years have been as follows :
19] 1, six per cent; 1912, ten per cent; 1913, fifteen
per cent; 1914, ten per cent; 1915, twenty per
cent.
Tbe Capital Coal Company is a new Pitts¬
burgh organization. Capital, $250,000. Incorpora¬
tors; W. J. C. Hays, W. J. Birmingham, Wil¬
liam E. Hays, IT. W. Breitweiser and A. AI. Love.
274
[October 2
THE BLACK DIAMOND.
General Review.
The Weather and Better Business Out¬
look Increase the Demand
for Coal.
'I'lierc IS, the country over, a better demand for
coal this week than was reported even two weeks
ago when the big upturn in the trade for this fall
came. At that time a few trade centers were
still conservative even if not openlv pessimistic.
Today those backward districts are Tailing in line
with the rest of the markets and everyone now
reports conditions as decidedly better.
To explain the coal situation, it is necessary to
deal in brief with the general business situation.
Lb> to now pretty nearly every thing has worked
against .\merican trade. We had good crops,
but the farmers culd not move the produce to
town because of bad weather and quarantines due
to the hoof and mouth disease. The steel mills
were running full, but little of their product was
used in this country, most of it being shipped
abroad. The coal trade had big orders from
abroad and big orders from makers of war muni¬
tions at home, but there was no other demand
to take up the enormous possible production.
There was a demand for men at fair wages in
some places, but the labor market all the while
was glutted with idle men. Thus, while we had
all of the things that make for prosperity, there
was always a fly in the ointment and the operator
could not realize the full benefit of the favorable
conditions.
Now. however, the whole situation has changed.
The farmers not only have the grain but they are
selling it. Thus the railroads are geting the busi¬
ness of moving it. The steel mills not only have
foreign orders, but they have orders from home
because home factories are busy. The coal trade
not only has a good export demand, but it has
ab'^o really a tremendous home demand coming
at once from the steam trade and the belated
buying of the householder.
On top of all these improved conditions, a mere
statement of which is enough to convince the
average reader, we have had this week another
favorable circumstance in the negotiating of a
tremendous loan by the allied powers of Europe.
Wc are assured, on eminent authority, that the
American banks are not loaning this money be¬
cause the war risk is a particularly good one, or
because it is good banking in any sense, but be¬
cause it is going to be good for the country in
a commercial sense. That is, money loaned to
Europe and France is not to help the countries
at war, but is to make a market for American-
produced goods. That is an assured fact under
the terms of the loan. This loan will give a
tremendous impetus to .\merican trade because
of the buying which the allies will do here. The
bankers are seeing to it that the psychological
effect at home of this loan is all that it should be.
In detail, nearly every section of the country
has seen a big upturn in the demand for coal
within the last week. Nearly all the section north
of the Ohio and Potomac rivers had a cool spell.
It was not cold at any place, but still it was cool
enough to necessitate fires. This has compelled
the householder to buy and in turn this buying
has been reflected upon the wholesale market be¬
cause the dealers were not very well stocked.
In a word, the retail buying has finally begun in
nearly every section and the operators are selling
coal now which perhaps they should have sold
several months ago. Even so, the demand is here.
In addition, there has been quite a pronounced
uiiturn in the demand for steam coal. In the east
the normal inqjrovement in the trade is being
helped along by storage buying by the large in¬
terests, which is on a big scale. In the west the
factory i)rograms have been filled out as they
liave not been for three or four years and buying
of steam coal is perhaps more general now than
it has been at any time in that period.
In places the car shortage is beginning to assert
itself as a serious factor. Tn some parts of West
Virginia, for example, the railroads have been
short of cars and have been taking more than
their usual cpiota to move the com|)any’s coal.
This is limiting the movement out of that state.
In other districts the shortage is not so apparent
as it was expected to be at this time, but still the
railroads arc far from having a full car supply.
The movement to the lakes continues to be
quite heavy. The trade, in fact, in that direction
is in better condition than it has been for quite a
while. All these things considered, the national
coal trade is in a prosperous condition and in
fact could not ask for a better situation unless
it might be an improvement in prices in ])laces.
Chicago Market.
Demand Continues to Increase and Prices
in Places Are
Stronger.
Office of The Black Dia.mond,
Chicaoo, September 30.
.\nthracite coal is a little bit stronger all
through the western territory. Sales agents have
I)reached extensively that after the first of Octo¬
ber the east would be likely to have a rush of
orders such as would deprive the west of coal
for some time. Retailers within the last ten days
have been ordering coal that they expect to need
inside of the next two weeks. This buying has
made the anthracite situation stronger than it
was, but even yet it is not up to expectations.
Smokeless coal has improved but the operators
arc not yet out of the woods. Real estate agencies
have been buying to some extent for the last
week and this is taking some coal from the re¬
tail yards. However, the retailers are not con¬
vinced on the score of prices as yet and are buy¬
ing cautiously. They take in what coal they need
when they can get it at a fair price, but they are
not interested in mine run and circular figures.
Luni]) and egg have been about as easy as was
reported last week. Perhaps not so much coal
was sold at $1.7.5 as heretofore, but the majority
of sales have been made in the neighborhood of
$2.00. The prices up to Thursday were :
F. O. n. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.30(^3.45 $1.25(ia)1.40
l.uni]) and egg . 3.80@1.3() 1.7r)(a'2.2r)
Somerset county coal has been moving in fair
volume with the prices remaining about as they
have been. That is, mine run is commanding any¬
where from $1.1.5 to $1.2.5 according to quality
and the lump and egg have been commanding
anywhere from $1.05 to $2.00, prices varying with
both the quality and the preparation. The prices
iqi to Thursday were :
F. O. B. F. O. B.
Somerset Countv — Chicago. Mines.
ytine ru.r . $3.20@.5.30 $1.1.‘)@1.2.'>
Lump and egg . 3.70(®4.05 1.65@2.00
The Hocking Valley situation continues to be
fairly strong. The dealers have continued to buy
at rather a livelier pace, but it is apparent that
they are buying to satisfy immediate orders in¬
stead of trying to stock up for the remainder of
the fall and winter months. Prices have continued
to be variable, ranging all the way from $1.50 to
$1.75 on the three-inch lump. The prices up to
Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.15@3.40 $1.50@1.75
There is reported from the territory west of
Chicago quite a lively demand for splint coal and
this has caused the situation to improve quite a
good deal. The docks, it seems, are beginning
to get slightly better prices and this is helping
the all rail situation. The result has been that
the average i)rice has moved up a little. While
some coals have sold at the old figures, producers
of the better coals are getting $1.50. The prices
up to Thursday were :
F. O. B. F. O. B.
i<anav/ha — Chicago. Mines.
Ikf-inch lump . !f3.ir)@3.40 $1.2o@1.50
The eastern Kentucky situation has been im-
jiroving within the last week. The prices have
not changed a great deal except that they are
stronger all along the line. Still the tonnage
moved is pretty heavy and it is a curious fact that
those who are holding for the highest prices are
sold up so that they are about out of the market
for the time being. Best grades of block and
lump coal are commanding $2.25 at the mines,
some of the other operators are getting $2.05 and
still others are holding for $1.90 at the mines;
some are accejiting less. The jirices np to Thurs-
dav were ;
F. p. B. F. O. B
Fastern Kentucky — Chicago. Mines.
Domestic lump . $3.65 @4. 15 $1.75 @2.25
Egg . 3.25@3.75 1.35@1.85
Some of the Franklin county operators have
gone over the situation very carefully within the
last week to decide what their price policy for
October is going to be. No one of them has
decided for the time being to make any change
in price. The situation seems to be that some of
the operators have sold up so far ahead that they
have retired from the market temporarily. Oth¬
ers are pretty well sold up, but are still taking
orders for delivery in ten days or two weeks
hence. Still others in that field are in need of
business which they are canvassing for at prices
not quite up to circular figure. Screenings are
a little stronger than they were. In Chicago the
price varies on small lots, but in the country the
minimum price is sixty cents a ton at the mines
and the operators mainly are holding for seventy
cents. The prices up to Thursday were :
F. O. B. F. O. B.
Franklin County — Chicago. Mines.
l.ump . $2.,sn $1.7.)
Fgg . 2.8(1 1.7.-)
No. 1 nut . 2., SO 1.77)
No. 2 nut . 2.45 1.40
Mine run . 2.15@2.20 1.10@1.15
2-inch screenings . l.O.") (o’ 1.7.) .(i0(@ .70
Williamson county prices remain unchanged
and no new circulars are going out on the first
of October. The reason apparently is that the
mines are running much fuller than they were a
short time ago, but still are doing only about
eighty to eighty-five per cent capacity and it is not
possible to get much better figures than at present
until the mines are running full. The market
continues to be that some operators are getting
$1.75 and others are quoting $1.60. Steam sizes
are not quite so strong as they were. The prices
up to Thursday were :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
hump . $2.65@2.80 $1.60(gl.75
Egg . 2.65@2.80 1.60(gl.75
No. 1 washed . 2.80 1.7.5
No. 2 washed . 2.45 1.40
Saline county prices this week have continued
to be about the same as they were a week ago.
That is, on a major part of the business $1.75 is
the price on the domestic sizes. Here and there,
this price is cut under on a few small sales of
distress coal. Prices as low as $1.60 have been
heard on that business. The fine coal situation
has firmed iqi somewhat, the minimum prices on
screenings being sixty cents and most of the
operators holding for seventi' cents. The prices
up to Thursday were :
F. O. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Mine run . 2.20 1.16
Screenings . 1.65@1.75 .60(® .70
lJ4inch lump . 2.35 1.30
The operators in Sangamon county in central
Illinois have announced the new circular price to
take effect October 1. According to the new cir¬
cular the six-inch lump is quoted at $1.75, nut
and egg at $1.()0, and steam lump at $1.50. These
prices will apply to some of the other counties
in the central Illinois field, but so far all of the
operators have not adopted them. Central Illi¬
nois screenings have been a little firmer this week
with prices ranging around about forty cents.
The prices up to Thursday were :
C'entral Illinois-
Lump .
Egg .
Nut .
Mine run .
Screenings .
F. O. B.
Chicago.
$2.47
2.32(®2.47
2.47
1.87
1.22
F. O. B.
Mines.
$1.65
1.50(®1.65
1.65
1.05
.40
Knox county coal, of course, is devoted ex¬
clusively to the steam trade. The principal feat¬
ure of that market is screenings on which some
of the producers are getting as much as ninety
cents a ton, while the others are accepting the
Chicago prices of sixty to sixty-five cents. The
])rice is quite variable on this size. Very little
attention is paid to domestic business with prices
still at $1.50. The prices
up to Thursday
were :
F. 0. B.
F. O. B.
Knox County —
Chicago.
Mines.
Lump .
_ $2.37
$1.5C
Egg .
_ 2.37
1.5C
Mine run .
_ 1.87
l.OS
Screenings .
_ 1.52
.65
In the Clinton field the demand for number
four coal for domestic purposes is still strong
and prices range from $1.60 to $1.65 with all of¬
ferings of coal taken. The number five and six
coals are mostly for steam purposes and prices
there have not changed from what they were.
Screenings being fairly firm at sixty to sixty-five
cents. The prices up to Thursday were :
F. O. B. F. O. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.35
No. 5 and (> mine run . 1.87 1.10
No. 5 and 6 screenings . 1.37@1.42 .f)0@ .05
The circular price on by-product coke is $4.S5,
but concessions of twenty cents a ton have been
made and the market is far from firm. Gas
house coke is quoted at $3.85, but the prices there
have also been as low as $3.65. Furnace and
foundry cokes are fairly firm and some few ship¬
ments of eastern coke into the western market
have been made. The prices up to Thursday
were :
F. O. B.
Coke — Chicago.
Connellsville . $4.85(®5.00
By-product, foundry . 4.90@5.10
By-product, egg and stove . 4.05@4.85
By-product, nut . 4.65(^4.85
flas house.,, . 3.65(®3.75
No. 14J
275
Pittsburgh Trade.
The Coal and Coke Trade Take a Turn
for the Better — All Branches
Are Better.
Office of The P>i..\ck Ui.iMONi),
T'iO.'J Oliver P>uilding,
PiTTSiiUROH, Pa., September 20, 1915.
A decided turn for the l)etter in both coal
and coke is shown in this market by steadily
increasing demand and advancing prices. Quota¬
tions made in this column last week may be said
to fairly represent the market today, hut in¬
creased strength is seen and 1916 is going to see
both branches of the trade in a highly prosper¬
ous condition. Unquestionably the seller is com¬
ing into his own — of course, there are sellers of
coal and coal to sell, where there are no buyers,
and there are buyers where there are no sellers —
but they are separated by the wall of advancing
prices for future deliveries, and it seems hard for
the buyer to realize that the market has passed
out of his hands. The producer, however, sees
that with the market to be dominated for a long
time by an unprecedented and continually increas¬
ing export demand, the prices of 1915 are not to
be considered for the future deliveries and is
holding firm for advancing figures.
Both coal and coke producers are feeling the
car shortage, and while all ovens or all mines
are not active, those that are, are having diffi¬
culty to get help sufficient to deliver the goods.
Colder weather has added its influence to strength¬
en prices, and while no large tonnages are being
called for, the demand on contract and spot in¬
dustrial consumption, with increasing retail call,
has made a steady and firm situation out of one
long weak and uncertain. Slack continues to be
a leading factor and sales have been made f. o. b.
Pittsburgh the past week at as high as 90 cents,
and not plentiful at that. Some furnace coke for
early 1916 delivery has been sold at $2.25, but
producers are making sliding scale contracts that,
with the pig iron market moving as it has been
of late, will show materially higher prices. The
percentage of activity among merchant operators
is increasing slowly, although some operators are
candid in admitting that they are not desirous of
a greater output until higher prices are secured.
Another cog«nt reason is the labor supply, which
is now very nearly at capacity.
No new operations were reported this week,
although the W. J. Rainey Company will fire
their 100 new rectangular ovens at the Allison
works immediately upon their completion in the
early part of October. In all the Rainey Company
will have 500 ovens in operation in Allison with
the construction of the new ovens.
Ovens of the Waltersburg Coal & Coke Com¬
pany are in readiness to be fired, and about eighty
of these will be put into operation as soon as
men sufficient in number to conduct the working
of the plant have been secured.
A persistent rumor has gained currency the
past week that a merger of some of the large
Pittsburgh coal concerns was being effected by
an eastern syndicate, but inquiry fails to locate
the source or the concerns, and further than
l)cing the periodical revival of an old story there
is apparently nothing to it.
The Marianna and other mining properties of
the Pittsburgh-Buffalo Company now in the
hands of the Union Coal & Coke Company as
holders for the Union Trust Company, of Pitts¬
burgh, are all idle awaiting the result of pend¬
ing negotiations that are reported to have a fa¬
vorable outlook, and it is expected the plants will
become active in the near future, though it will
require time to get them into working condition
again.
Lake shipments from this district have been
somewhat heavier of late, but largely on con¬
tract, and while car capacity for rail shipping
is .somewhat troublesome, there is no difficulty in
securing vessel tonnage capacity for coal.
All the larger steel and iron mills are taking
heavily increased shipments on contracts, and
there seems to be little or no coal on sidings any
place.
The West Virginia freight rate question is
causing much comment in coal circles here, and
while it is in some instances favorable to the
Pittsburgh operator, yet much Pittsburgh capital
is invested in West Virginia coal operations,
hence it operates against local interests as well.
Personal and News Items.
N. P. 1 lyndman, general sales agent of the
Washington Coal & Coke Company, is in Buf¬
falo this week in the interest of his company.
The Jefferson Coal & Coke Company, Parkers-
THE BLACK DIAMOND.
•burg, W. Va., has been incorporated with $300,-
000 capital stock to develop coal properties.
J. Norman Sherer has been appointed sales
agent for the Producers’ Coke Company of Union-
town in place of Richard Peters, Jr., who recent¬
ly went with the William J. Rainey interest.
The Pittsburgh Coal Company has declared
the usual quarterly dividend of per cent on
the ])referred stock, payable October 25 to hold¬
ers of record October 15.
Ralph Baggaley, aged 08, whose business genius
habilitated some of the greate.st corporations in
this section, died suddenly last week. For the
past two months he had been suffering from an
ailment of the heart and to this his demise is
attributable. Mr. Baggaley was interested in
many enterprises.
After the panic of 1873 he purchased more
than 27,000 acres of valuable land property in
the Lake Superior region. After his managerial
aptitude had met with success in this new chan¬
nel and the mines had proved very rich, they
attracted the attention of the United States Steel
Corporation, which now leases and operates
them. In 1880 he acquired title to much land in
the Connellsville region and built what is known
as the model coke-making plant. He and Dr.
Hostetter of this city formed a coke company
which was known as the Hostetter-Connellsville
Company, and Mr. Baggaley also owned the Pu¬
ritan Coke Company, which he leased to a sub¬
sidiary of the United States Steel Corporation.
While the past week saw a slight gain in the ex¬
port movement as compared with the week pre¬
vious, when less than 20,000 tons were loaded
here for foreign account, it was still much below
recent weekly records. The loading for the week
totaled 27,810 tons.
There is also a better tone to tbe coke mar¬
ket. The demands of the steel industries are
such that coke is a rising figure. West Vir¬
ginia forty-eight-hour is calling for from $1.60 to
$1.70, with seventy-two-hour worth $2.10 to $2.25.
Connellsville forty-eight-hour is bringing from
$1.75 to $1.85 and seventy-two-hour $2.30 to $2'.40.
Some Trade Notes.
A warning for all shippers, including coal men,
to load and unload cars promptly so as to avoid
a serious car famine this fall, has been sent out
by the Maryland Public Service Commission.
Tbe first of a series of three big colliers just
built for the Coastwise Transportation Com¬
pany of Boston, and under time charter to the
Consolidation Coal Company, loaded her maiden
cargo here the past week. The Franklin, as the
new boat is named, took on 8,600 tons for Alex¬
andria, Egypt.
Emerson & Morgan, one of the most repre¬
sentative coal firms here, have sold their old
yards on Central avenue and will, about the mid¬
dle of November, be located in splendid new
yards at Jefferson place and Twenty-third street.
The Baltimore & Ohio Railroad has recently
erected three great trestles there, and has leased
two of them to the Emerson & Morgan firm.
Duluth Trade.
Duluth, IMinn., September 30. — (Special Cor¬
respondence.) — Coal dock men at this point are
inclined to the belief that the movement this
way from Lake Erie ports has passed its highest
point, for the reason that the demand in the east
and middle west is taking about all the coal that
is being produced and that there is no anxiety-
on the part of shippers to send coal to this part
of the country. There have been a good many
charters made, however, and the end of the
,shi|)ping sea.son for coal has not arrived yet,
nor do they say so, but they claim that the re¬
ceipts will show a falling off as compared to
what has been expected and what other years
have shown.
However, there is no danger of a .shortage
of coal, they claim, for with the hang-over from
last season and the amount of coal that has al¬
ready been received there is an ample supply on
hand to fill all needs.
Business is good these days, and a great deal
of shipping is going on from this point. Much
room is being made on the docks for such coal
as arrives from the east, and some of the docks
arc still waiting for the first arrivals in several
weeks. One thing that has retarded a liberal
.shipment of coal to northwest points is the fact
that the grain has been much slower coming in
than anybody looked for. Receipts of grain have
been amazingly short in view of the huge crop
that is being harvested, and as compared to what
grain men expected. Everybody was “set” to
receive a rush ; but it has not come. That has the
rolling stock of the railroads tied up further
west, and until the cars get in here there will
not be much loading out of coal. As soon as the
grain receipts grow more coal will go out. In
the meantime, only normal shipping is going on
ffrom the coal docks here. It is believed that wet
weather is the primary cause in the delay of grain
movement ; for there has been a great deal of rain.
At Fort William and Port Arthur, Ontario,
coal is arriving at what seems to be a fixed rate
of seven to eight cargoes a week, and the dock
men there feel that that will be about the run
until the end of the season. Car shipments at
those points show an increase over previous
weeks, l)Ut are not yet regarded as “big.”
Recently complaints were filed with the Inter¬
state Commerce Commission alleging overcharges
on shipments of coal from the head of the lakes
to points in Minnesota, aggregating several thou¬
sands of dollars, against the railroads running out
of here. Among the complainants was mentioned
the Hoover Grain Company of Duluth. Samuel
Hoover, president of the company, denies any
connection with the matter. He says that his
company does not deal in coal and is therefore
not interested. He says that some Minneapolis
man, evidently interested in getting up the case,
tried, by long-distance telephone, to induce him
to enter the case, and that this man evidently did
not believe Mr. Hoover’s statement that he was
not in the coal business and not interested, for he
has used the company’s name anyway.
St. Louis Trade.
St. Louis, Mo., September 30. — (Special Corre¬
spondence.) — Trade in a wholesale way has been
very lirisk for tbe past week, due to the rate ad¬
vance on October 1st. Dealers, both in town and
the country, have bought pretty heavily to pro¬
tect against this increase. As a general rule, there
does not seem to be very much coal sold for
(October shi])ment and all prospects are that there
will be heavy buying in early October. Domes¬
tic sizes are holding up to prices set throughout
the month, and all indications are that they will
continue the same for some time to come. There
seems to be no likelihood of any reductions in
Iirices, inclining rather to advance a little more
after the 15th of October. Fine coal is holding
its own and every prospect is that the screenings
will not see a reduction any more this year.
Standard coals are moving well. The mines are
running better than half time at present. Current
prices as follows:
F. O. B.
Standard Coal Mine.
6-inch lump . $1.20
6x3-inch egg . 1.10
2-inch lump . 1.00
Steam egg . 90
No. 1 nut . 1.00
No. 2 nut . 80
Mine run . 85
Screenings . 40
F. O. B.
St. Louis.
$1.77}4
1.67/2
l.ST’A
1.47/
1.57/2
1.37/
1.42/
.97/
Williamson ctnmty coals are in the same relative
position as they were last week : however, it would
not he surprising to see more current orders com¬
ing during the next two weeks than have come
in for the last three or four days. This is brought
on by tbe fact that just now everyone is waiting
for coal to be shipped that was bought to protect
the rate increase. Of course, for the (last few
days buying has been a little slack, as the mines
have not been inclined to sell a great deal of coal
for October shipment. This is especially so of the
domestic sizes :
F. (). B. F. O. 15.
Mine. St. Louis.
O-inch lump or egg . 1.60@1.75 2.22 @2.47
3x2-incli nut . 1.50@1.7.5 2.32 @2.4734
Screenings . .50 1.2234
Franklin county coals arc about in the same
position as the Williamson county, as far as the
sizes sold are concerned. Plenty of orders on
hand for the domestic sizes, with the fine coal
dragging a little :
F. O. B.
Mine
6-incli lump, egg or nut . $1.75
No. 2 stove . 1.40
Screenings . 6(1
F. O. B.
St. I. Olds.
$2.47/
2.12/
1.32/
Anthracite is in good demand and movement
very good :
Anthracite — F. O. li. St. Louis.
(Miestnut . $7.65
Stove or egg . 7.30
Grate . 7.05
Smokeless — F. O. B. O. B.
Mine St. Louis.
r^ump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . _ . $4.25
I?y-product coke (all sizes) . 4.50
The iirices on Illinois soft coal f. o. b. East
St. Louis, Madison, Venice or Granite City, Ill.,
are 25J4 cents lower than the above quoted St.
Louis prices.
276
THE BLACK DIAMOND
[October 2
Cincinnati Trade.
Retailers Are Selling More Coal Because
of Frosty Weather and the Market
Is Stronger.
CixciNNATi, Ohio, September 30. — (Special
Correspondence.) — The feature of the coal trade
this week is the activity in retail distribution as
reported by salesmen coming for a brief visit
to headquarters. They report that the frosty
tinge to the atmosphere, which came in with the
week and which continued almost through it, has
turned the thoughts of the farmer and the arti¬
san to the fact that it is nearing time when the
evenings at home will not be as pleasant as
tliey have been for some time and that a little
artificial heat is necessary. This has started
retail demand and the supplies of the dealer are
beginning to melt away. Those who have had
the foresight to be prepared for the rush are
reaping the reward, while the “other fellow” is
frantically trying to catch the ear of the opera¬
tor at whom he has laughed and cried “wolf”
when the operator has tried to assure him that
fall weather would come soon, that winter would
be along, that car shortage would be as sure as
death and taxes, and that labor scarcity would
interfere with late delivery. Salesmen report
that dealers have been found overseeing loading
for retail delivery with wagons waiting their
turn and the coal pile rapidly diminishing. “Yes,
send me three cars, five cars, ten cars right along.
If this keeps up I will need them as quick as
you can get them in.” This is generally the an¬
swer when the old question is asked, “Shall I
send you some more coal” ?
This quickening of retail delivery, of course,
will soon reach the wholesaler and the producer
and there is no doubt there will be as brisk a
movement as the car supply will permit. This
shortage has practically nullified the scarcity of
labor and the mines are now pretty generally re¬
turning to full force and full shifts on at least
four days a week. Sometimes but three days
can be accomplished on account of car delivery.
The mines are hampered sometimes by the pecu¬
liar situations that may arise in the “no bill, no
car delivery” feature of the situation which is
now enforced to the letter. When the shifting
train comes and finds even a single “no bill” car
it passes along until that car is off the siding.
The rule is rigidly enforced, and it has helped the
situation considerably. All this is true to the
splint situation.
The smokeless situation is different. It has
never been very bad in the season, but at times
the delivery of slack has been retarded by tem¬
porary lack of a place in which to drop the re¬
sultant lump and egg coal. Sometimes, then,
lump and egg have been placed on track or ad¬
vertised as spot. Generally the very announce¬
ment that there was free lump or egg in the
market caused some dealer who was in the re¬
verse situation to jump for it, and the market
has not been at any time embarrassed except tem¬
porarily by their presence. Now the domestic de¬
mand for small deliveries is drawing on the mar¬
ket, and there is a smoother, easier and more
satisfactory situation even than has been felt
throughout the market the entire season. The
chances are that with the same drags to delivery,
shortage of cars and scarcity of labor, which the
splint producers are wrestling with, the smoke¬
less market will tighten on domestic, and pre¬
mium coal will be a fact in a short time.
Prices are a little stiffer now in the market
for the splint production, some Kentucky opera¬
tions quoting $1.65 to $1.75 for four-inch block
and the best nut and slack sixty to sixty-five cents.
The latter is spot shipment and will strengthen as
manufacturing supplies begin to lessen, due to
car stringency. Manufacturing is gradually be¬
coming stronger, and it is a belief among opera¬
tors that nut and slack will be at much higher
figures inside of thirty days. As it is, some spot
forty-cent slack has advanced to fifty cents within
a day or two. West Virginia lump, in some re¬
gions, has advanced and one or two operations
liave advanced prices all along the line from five to
ten cents per ton, with a view to another ad¬
vance by the 10th. One and one-half-inch lump
in some of these fields now is commanding eighty
to eighty-five cents, and is tightening in supply.
Some of the Logan county product, quoted last
week at $1.60, is now $1.65, with two-inch lump
$1.30 to $1.35 and run of mine ninety-five cents to
$1.05. bigg is quoted at the .=ame figure, $1, be¬
cause demand for it has not improved. Nut and
slack also hang around sixty cents in this product,
and it is tliis that has caused the advance in the
domestic sizes, the mines not caring to mine
sufficient domestic to cause further embarrass¬
ment in nut and slack.
A large trainload of Italian recruits will start
from this city Sunday for the war fields, many
of them West Virginia miners, still further de¬
pleting the skilled mining forces. This will bring
the total from here to close to a regiment and a
half, of 1,500 men, probably the majority being
miners. From other points there have been other
exoduses in proportion.
Cincinnati Trade News.
Captain George W. Budd was in Washington,
1). C., this week to attend the forty-ninth en¬
campment of the G. A. R. Captain Budd had
just been elected president of the Fifth Ohio Vol¬
unteer Cavalry Association. He was accompanied
to Washington by Mrs. Budd.
Roy O. Ileyser, representing the Solvay com¬
panies with offices in this city, has bought him¬
self an auto runabout, which he is breaking in
for his purposes. Mr. Heyser does considerable
traveling in this section for the companies, and
he will take advantage of the new machine for
nearby trips.
Emmet C. Peebles, who for several months has
represented the White Oak Coal Company in the
Cincinnati territory, having reopened offices for
the company here after they had been closed for
some months, has resigned his position with the
company and will make new connections when
he has had a short vacation. Several other op¬
portunities have presented themselves, one of
which he will probably take advantage of. The
headquarters of the company are at MacDonald,
W. Va.
Edward Klinenberg, a retail coal man of Chi¬
cago, was a viistor in the city Friday last week
and was introduced on the Coal Exchange by M.
E. Lynn, of the Campbell’s Creek Coal Company.
Tows of coal are still coming in from the
Kanawha district by river, the two rivers having
sufficient depth to allow the passage of vessels
from that district down. The upper Ohio is not
in good condition for the passage of Pittsburgh
coal, but coal is massing up there for the fall
rise, when large tonnages will be brought down
for all river points.
Various business organizations of the cities
of West Virginia are showing a disposition to
take up the matter of an increase of rate of
freight for the transportation of West Virginia
coal in favor of Ohio coal, and the Qarksburg
Board of Trade and the Business Men’s League
of that city have drafted strong resolutions call¬
ing on all business men and financial men of the
state to aid in the matter of preventing discrimi¬
natory rates such as are proposed in aid of Ohio
coal. These bodies declare the proposed raise
of fifteen cents as discriminatory and unjust.
The Hutchinson Coal Company, with headquar¬
ters in Fairmont, W. Va., and its principal sell¬
ing agency in Cleveland, has opened up offices
in Cincinnati, in charge of Mr. Lee Hutchinson,
who began business at 2602 Union Central Life
Imilding Monday. His stenographer was not able
to be in the office until yesterday, October 1. This
is the gateway for the product of the company
toward the north and northwest and the coal has
been gradually gaining way in the territory sur¬
rounding Cincinnati, so that it has been felt for
some time that an office should be opened here.
The many friends of Captain W. S. Howell,
who for ten years has been treasurer and mem¬
ber of the board of directors of the Halmar Coal
Mining Company, were taken by surprise when
it was announced a few days ago that he had
disposed of his stock and resigned his positions
with the company and had retired from any con¬
nection with it. Captain Howell has stated that
he desired to seek other connections with a view
to retiring entirely from business at some time
in the near future. He announces that he ex¬
pects to enter the coal trade along other lines.
Captain Howell is among- the best known coal
men of the city and has many friends all over
the country.
A peculiar action has been taken by the United
States Workers’ executive board, in the appoint¬
ment of a committee to try to bring about an
amendment to the Sherman anti-trust law pro-
liibiting coal operators from increasing prices to
correspond with increases in production cost,
brought about by demands of labor for increased
rates for mining. The committee consists of
President John P. White, Vice-President Frank
J. Hays and Secretary William Green, and it has
been instructed to go before the operators of
West Virginia and ask the appointment of a com¬
mittee to act jointly in the matter. The idea
seems to be that prevention of an increase in the
price of Ohio coal under the proposed increase
of rate for carrying West Virginia coal can thus
be accomplished. As the object of the increase of
railroad rates to hamper competitors is certain
to allow an increase of price in the coal bene¬
fited so increased wages and other expenses can
be borne, the action of the committee would seem
to be useless one way or the other, and it is not
deemed likely that the operators will take up
such a scheme, which would tie them up in fu¬
ture like situations and gradually bring about
abandonment of the mines or their absorption by
the mine workers.
Information from the Fairmont region indi¬
cates that the Four States Coal & Coke Com¬
pany will resume operations following settlement
of financial conditions which threw the Pitts-
burgh-Buffalo Company into a receivership and
lirought about its sale recently. The Four States
company was a part of the Pittsburgh-Buffalo
Company, yet not in the sense that it could be
made responsible for all the financial dealings of
the holding company. Both had joint offices in
Cincinnati until about a month ago, when, after
the sale of the Pittsburgh-Buffalo Company, they
were closed and the furniture which belonged to
the Four States company was stored. This com¬
pany now announces that it will arrange for 450
more miners and that it will reopen with about
550 men, if they can be had, which is doubtful
in the present state of labor in all the West
Virginia districts. The first mine to be reopened
is the Annabelle mine, near Clarksburg. It was
.shut down in August, pending an adjustment of
its affairs. W. J. Wolfe, general manager, has
announced that the mines will go into full oper¬
ation at once and that by Monday, October 4th,
all will be fully manned. It is not known just
what the situatio;i is as to control, but it is sur¬
mised that the operations have gone back into
the hands of the original company, which leased
to the Jones interests before those interests be¬
came involved. It is claimed that the combina¬
tion was working smoothly and well until the dis¬
astrous explosion in the Marianna mine in Penn¬
sylvania a few years ago. This disaster brought
on financial difficulties, growing more and more
involved, until matters came to a crisis in the
receivership at Pittsburgh.
Louisville Mark'et.
Louisville, Ky., September 30.— (Special Cor¬
respondence.) — A temporary slump in the coal
trade, probably due in part to a period of exces¬
sively hot mid-September weather, has appar¬
ently come practically to an end and prospects
seem favorable for continual improvement in coal
trade conditions at this time.
Steam coal of all grades, but particularly
screenings, is still a drug on the market, and con¬
siderable coal of this character both from eastern
Kentucky and western Kentucky is on track on
demurrage and selling at bargain counter prices.
The market for domestic sizes, however, is firmer
than a week ago and prospects indicate condi¬
tions justifying an advance of price on all good
domestic coal on and after October 1.
There has been little or no change in the situa¬
tion in regard to car supply, most mines being
.short of cars one or two days a week throughout
September, but loading a tonnage of coal which
will probably be found to break any previous
monthly records for quite a number of the larger
operating companies. Partly due to this enlarged
movement of coal, consumption of fuel by coal¬
carrying railroads in this section has increased
substantially, the Southern Railway continuing to
take the maximum contract amount from its oper¬
ators in the Middlesboro and other districts, and
the Illinois Central and Louisville & Nashville
are also taking more coal than at any recent
period, although having very large stocks accumu¬
lated.
It is the belief of this writer that stocks of
both steam and domestic coal are unusually light,
both in country and city points, and that with a
continuance of general business conditions as at
present, a dependable market for domestic coal
at good prices and a fairly satisfactory market
for steam sizes should be available to operators
throughout the present winter, of course, with
the usual fluctuations due to temporary condi¬
tions of weather, etc.
Advancing prices of cotton and other com¬
modities, of interest particularly to the southern
states, is having a beneficial effect on business in
these states which mine no coal, but consume a
large portion of the output of the eastern Ken-
tucky-Tennessee field, and operators may derive
considerable encouragement in that section.
No. 14]
THE BLACK DIAMOND.
277
Detroit Trade.
Uetkoit, Mich., September 30. — (Special Cor¬
respondence.) — Improved conditions which have
been a feature of the Detroit market for steam
coal in the recent past are well maintained.
Though of slow development, the better feeling
and more favorable aspect of the market appear
to be steadily growing with a broadening demand
and attendant steadying of prices.
In some measure the expansion of industrial
activity in various lines of manufacturing is be¬
ing reflected in increasing inquiry for stock.
Orders continue of rather small size, though their
repetition, at not infrequent intervals, makes the
aggregate of sales a substantial tonnage. The
amount of business coming to shippers from in¬
terior points in the state also shows a gratifying
gain, attributed in part to improving general busi¬
ness conditions following larger demand for
various manufactured commodities from agricul¬
tural sections which have been enriched by large
fruit and crop production.
Throughout the earlier part of last week do¬
mestic coal was in very little demand. High
temperatures have since given place to decidedly
chilly weather, with frost a nightly possibility,
the result being to impart considerable stimulus
to the inquiry coming from householders. This
betterment of the situation is, however, chiefly
beneficial at present to the retail dealers, although
continuance of the cold weather, which now
seems likely, is expected to bring additional busi¬
ness to the shippers and jobbers in the very near
future.
Various conditions in the mining districts, in¬
cluding labor difficulties, shortage of labor and
scarcity of cars, have combined in effecting a
material reduction in the amount of consignment
coal that is being sent into Detroit. There is con¬
signment coal here in considerable amount, more
than enough of it, according to shippers who re¬
strict their operations principally to sales on a
direct mine shipment basis, but, under present
conditions the coal on consignment is far less
troublesome than a few weeks ago and the neces¬
sity for making sales at cut prices does not exert
such an unsettling influence on the price of coal
handled on a direct shipment plan. Consumers
are not able, as they were, to go into the market
and buy cheap coal, whenever the spirit moves
them.
Retail yards are busy with the distribution of
anthracite, but the orders for additional supply
are materializing less rapidly than the shippers
desire.
Prices in the local
market on mine
shipment
orders are as follows
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
. 1.10
2.50
Mine run .
. .90
2.30
Slack .
. 75® .85
2.15@2.25
West Virginia Splint — •
Four-inch lump .
1.90@2.1.‘)
Two-inch lump .
2.15@2.30
Three-quarter .
. 1.10
2.50
Mine run .
. 1.00
2.40
Nut, pea and slack .
1.95@3.05
Smokeless — '
Lump and egg .
. 2.25
3.85
Nut .
. 1.75
3.35
Slack .
Open
Mine run .
. 1.25
2.85
Kentucky Splint —
Lump .
3.00@3.15
Egg .
2.65@2.8n
Nut, pea and slack .
2.05
Fairmount —
Three-quarter steam lump.
2.25@2.35
Mine run .
2.10@2.20
Slack .
Open
Hocking Valley —
Shaker three-inch lump...
. 1.50
2.65
Shaker egg and nut .
. 1.15
2.30
Domestic lump .
. 1.40
2.55
Three-quarter lump .
. 1.25@1.30
2.40@2.45
Mine run .
. 1.00@1.10
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 — •
Three-quarter lump .
. 1.15
2.30
Mine run .
. 1.05
2.20
Slack .
Open
Jackson Hill —
Domestic lump .
. 2.50
3.65
Cambridge —
Three-quarter lump .
. 1.20
2.35
Mine run .
. 1.10
2.25
Pomeroy —
Two and three-inch lump. .
. 1.60
2.75
Egg .
. 1.35
2.50
Slack .
Open
Detroit Coal Bids.
Detroit, Mich., September 30. — {Special Cor¬
respondence.) — P. Koenig Coal Company of De¬
troit is rated lowest of four firms, whose bids
for coal supply were opened by the board of
auditors of Wayne county, Mich. The bids were
asked on a basis of about 2, .500 tons of anthracite,
stove or egg size, or an equal amount of bitu¬
minous smokeless coal and for twenty-five tons
of chestnut, delivery to be made at Wayne
county’s office building, detention home and the
jail. The Koenig company’s bid is about ten
cents lower than the price at which the same
company supplied the auditor’s last year. Pay¬
ment is on the b. t. u. basis, with premium for
excess and discount charged to any deficiency of
b. t. u. from the standard of 14,000. The bidders
and prices were :
Bit.
Anth. Smoke- Anth.
Firm and coal — S. & E. less Chesn.
P. Koenig Coal Co., Meadowbrook nut .... $2.80 ....
United Fuel & Supply Co., Richwood
nut, Red Jacket . ^ . $7.20
United Fuel & Supply Co., Smithers
Creek nut and slack . 2.65 ....
R. L. Aylwar, Island Creek, Holden,
W. Va., lump . 3.25 ....
R. L. Aylwar, Blue Gem, wash pea
and slack, Ky . ' . 2.90 ....
R. L. Aylwar, Kentucky nut, pea and
slack . 2.70 ....
R. L. Avlwar, W. Va. nut, pea and
slack. Is. Cr . 2.75 ....
R. L. Aylwar, anthracite, Pittston, Pa. $7.25 .... 7.50
Parker Bros. Co., Ltd., White Star
nut. W. Va . 3.25 ....
Parker Bros. Co.. Ltd., anthracite,
Scranton . 7.75
Birmingham Trade.
Birmingham, Ala., September 30. — (Special
Correspondence.) — The domestic coal trade is still
making a good showing and most salesmen report
business good. One large company has orders
for two months ahead. Another has orders for a
month. Most of the large producing companies
are getting out very nearly full capacity. It is
only the small producer from whom any com¬
plaint comes.
Steam coal, while trade is in fair condition, has
not shown any large movement of coal. Though
there is some slight improvement beginning to
show up. Most of the cotton mills have begun
operations and a limited demand is had from
this source. The bunker trade towards the gulf
still goes on with a fair tonnage.
Coking coal is making a fine showing, as most
of the iron furnaces of the district are in blast.
The demand for coke is large and hence a large
demand for coking coal. The Tennessee Com¬
pany is adding another benzol plant, this making
a fourth for the district within the past five
months. As these plants are good consumers of
coking coal, this class of mining is in very excel¬
lent condition. This company also announces
that all of its mines will be put in operation Octo¬
ber 1, thus showing that its own demands are
large, besides having some good outside business.
“The mining industry throughout Alabama is
something unusual, and has done much to keep
Alabama very much alive during the past few
months,” said C. H. Nesbitt, chief mine inspector.
He further says that with the present indications
mine coal will be produced in Alabama for 1915
and will far exceed that of 1914. “Our rep'orts al¬
ready show a good increase,” he said, “and I
expect the production for the last quarter of the
year to show a great improvement over any pre¬
vious quarter this year.”
Mr. Nesbitt states that many more mines are
operating throughout the state than were operat¬
ing at this time last year, and that many which
were then operating on a fifty per cent basis are
now running full blast.
September Prices.
F. O. B. F. p. B.
Bibb County Domestic Coal — Mines. Birmingham.
Red Ash C'aliabd lump . $2.75 $3.05
Red Ash Cahaba lump . 2.50 2.80
Red Ash steam size . 1.20@1.35 Frt. rate 30c
Jefferson County —
Fancy steam Pratt . 1.75 2.00
Run of mine Pratt . 1.20@1.25 1.45@>1.50
Mary Lee lump . 1.40@1.50 1.80@1.90
Black Creek —
Fancy steam lump . 1.75 2.05
Washed nut . 1.75 2.05
Washed steam . 1.35@1.60 Frt. rate 30c
Mine run . 1.35@1.40 Frt. rate 30c
Jefferson Steam Coal —
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic —
Carboi: Hill lump . 1.70 2.00
Carbon Hill egg . 1.60 2.00
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
Lump . 1.85 2.25
Egg . 1.75 2.15
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic C'oal —
Cahaba fancy lump . 2.75 3.00
Cahaba No. 2 lump . 2.50 2.80
Montevallo domestic prices ranging from $2.75 to S^3.00.
Blacksmith coal, washed and screened, per ton. $2 to
$2.25 at mines, with different rates to various points.
C. II. Nesbitt, chief mine inspector, will make
a trip into Walker county this week to witness
the opening operations of the Sunlight Company,
and as this process has been very little used in
Alabama, much interest is centered in the open¬
ing of these mines.
“The strip mining process, after it becomes
more widely employed, will mean a great for¬
ward movement for the mining industry in Ala¬
bama,” said Nesbitt. “While the process can only
be employed where the coal has an earth cover
of from twenty-five to forty feet, there are great
tracts of mining land of this nature in Alabama.”
More than 960 acres of land in Tuscaloosa
county was sold by the Alabama Company to the
Central Iron & Coal Company, the latter com¬
pany desiring to increase its holdings in prepara¬
tion for development in the future.
The announcement of the sale of the properties
in Tuscaloosa county comes from Baltimore,
where the greater portion, or practically all, of
the stock in the Alabama company is held.
The deal is said to have involved a considera¬
tion of about $80,000, and the lands are adjacent
to the Kellerman properties of the Central Com¬
pany. The lands are not convenient to the other
properties of the Alabama Company, and for that
reason the sale is believed to have been advan¬
tageous for the latter company.
The Canal Export Coal Company has leased its
holdings to Tidmore & Jordan, who are now mak¬
ing improvements so that a tonnage of , 400 tons
per day can be produced. Also, arranged so this
can be increased, when needed. This tract lies
not far from Acton in Shelby county, and not far
from mines of Alabama Fuel & Iron Company.
Denver Trade.
Denver, Colo., September 30. — (Special Corre¬
spondence.) — Cold rains and continued cool
nights as gentle reminders of the approaching
winter have been followed by steadily increasing
activity as regards the production and marketing
of coal here this week. While the lignite district
leads in production, outside of Trinidad, Walsen-
burg and Routt county, as well as the Canon City
district, are making a much better tonnage.
Local retailers all report a larger volume of
business this week than at any time since last
spring. Storing of all grades for domestic use
continues and weather conditions are responsible
for a good demand for immediate requirements.
Harvesting of small grain has been delayed in
some sections of the state on account of labor
shortage. At Pueblo prisoners in the city jail
were given their freedom last week on their
promise to assist the farmers. In most sections
of the state, however, and also in Wyoming,
cutting has been completed and threshing is well
under way. The threshing demand and the start¬
ing of some of the sugar factories have con¬
tributed largely to a heavy lignite output.
There seems to be a good demand, sufficient to
take care of the slack from the larger lump out¬
put of lignite and bituminous. Prices are stronger
and well maintained.
Prices for lignite coal f. o. b. mines are as fol¬
lows : For Denver delivery — lump, $3.35 to $2.65:
mine-run, $1.50 to $1.65; slack, $1.05 to $1.25. For
points outside of Denver — lump, $2.50 ; mine-run,
$1.55 to $1.65; slack, $1.05.
New Vein of Coal.
Denver, Colo., September 30. — (Special Corre¬
spondence.) — fifteen-foot vein of semi-bitu¬
minous coal is reported to have been discovered
in the Broomfield district, next to the lignite
fields of Lafayette, Louisville, Superior and
Marshall. The discovery is considered of great
importance.
The vein was said to have been encountered at
a depth of several hundred feet in the course of
an artesian well excavation. Heavy diamond
drills were being used, the cores of which revealed
traces of coal at a depth of about seventy-five
feet. The drills made comparatively rapid prog¬
ress through the strata below until they struck
the hard coal vein 100 feet lower. Here the
drilling was slowed considerably and an investi¬
gation made of the cores through which the waste
of the drill hole is carried. Small chips of coal
appeared with rock, but with an additional foot
of drilling the waste became solid coal. The
drill was sent down thirteen or fourteen feet
beyond this point before rock chips again ap¬
peared in the core.
Several samples of the coal have shown by
analysis that it is almost as hard as anthracite.
H. E. Fitz, of Fort Dodge, la., has sold his
retail coal business to Edward W. Collins, who
will carry a complete line of bituminous and
antbracite coal.
278
THE BEA( K DIAMOND
New York Trade.
Anthracite Trade Grows Stronger With
Milder Weather — Bituminous
Active.
Office of The Black Diamond,
New York, September ?>(), 1915.
'Hie last week of September, with mucb cooler
weather, brought a great deal of improvement
to the anthracite trade, both wholesale and re¬
tail. Last week wholesale buying became more
active, and as the weather has grown more sea¬
sonable buying for domestic consumption has also
been greatly stimulated. Consumers are showing
some concern now about their coal needs.
Last week mo.st of the anthracite operations
were working on short time. This week some
of the companies report that they are working
on full time for the first time since last spring.
Some of them see ample business in sight to
continue on a full-time schedule for some weeks
at least. The greatest improvement in the trade
comes from the line dealers, and while there has
been a very noticeable pick-up in the tidewater
trade, it is still lacking the snap that is so much
in evidence in the line trade. The better de¬
mand for coal from all quarters is gradually
l)riuging domestic size prices up to the full winter
circular. As trade Irecomes more active the indi¬
viduals are gradually bringing their prices up so
that the full winter schedule is now nearer reali¬
zation than many in the trade deemed possible.
.A.nd while instances are given where buyers inti¬
mate that they have been offered very heavy con¬
cessions, it is usually found that these prospective
bargain seekers in the end are inclined to pay
prices more in line with the circular. Individual
concessions from the circular which now average
twenty cents per ton get full prices on certain
favored sizes, allowing concessions on the less
favored.
Up to the moment the car supply for the anthra¬
cite coals has lieen very good, but with the line
trade showing more activity and railroads becom¬
ing congested with other tonnage of a pressing
nature, it is e.xpected that from this time on
transportation conditions will not lie so easy, as
a great deal of very heavy war stuff is now mov¬
ing over some of the important eastern anthra¬
cite carrying roads and their connections as well.
.A.nd, moreover, there is a growing shortage of
labor of all kinds, so that it will only require
a slip of a cog here and there to bring about a
freight congestion. Another condition to be
watched is that of cars. While the great bulk
of anthracite is moved in bopper-liottom cars,
there are still a great many retail coal dealers
scattered here and there who do not have plants
that are equipped to handle hopper-bottom cars,
and who want low-side cars from which coal can
be discharged by hand. These cars have been
growing scarcer from year to year, and just now
the railroads that have cars of this description
on hand are finding thousands of calls for them
for other freight.
The labor situation is being watched very close¬
ly, and as the public begins to realize the gravity
of the situation as it appears to some of the best
informed men of the trade, there will no doubt
be a great increase in buying thereby.
The steam size situation at tidewater especially
is considerably changed. These sizes are grow¬
ing scarcer, that is, more of them are being taken
upon contract requirements, leaving small sur¬
pluses for spot trade. Therefore, those jobbers
who have contracts on these sizes are covering
certain monthly deliveries and those who have been
buying in the open market, are finding it much
harder now than ever before to secure suitable
grades of buckwheat that they can apply upon
their contracts, and at prices in line with which
these contracts were taken. At New York tide¬
water ports choice grades of all the steam sizes
are now selling at full circular. Some of the
inferior buckwheats can now be purchased at
twenty to twenty-five cents off, with medium
grades of rice .selling at twenty cents off circular
and barley at ten to fifteen cents. For the first
time in months pea coal is very active, and it is
very difficult to secure choice grades of it for
prompt shipment. Inferior grades can be pur-
ebased at twenty-five to thirty cents off circular.
New \'ork prices:
l’l)I)er I.ower
l*orts. Ports.
P>roken . $o.l()
Kgg . 0.37)
Stove . 7). 3.3 5.23
Chestnut . 5,60 5.50
Pea . 3,55 3.45
Special grades of Red Ash and other high grade
coals at the lower ports sell at twenty-five to
fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows :
Kgg . and up
^tove . ,).(I5 and up
Nut . o.OO and up
I’ra . and up
I’.urk . '-’.'-’.'i and n|i
I'ice . 1.7.") .and up
I'arU-y . and U])
The Bituminous Situation.
The eastern bituminous trade continues ter
gather strength from week to week. This week
finds the situation considerably stronger, and mine
".prices somewhat stiffer, with some improvement
noticed in tidewater i)rices. Salesmen report that
they find large buyers in a more amiable mood
than heretofore. Those who are not i)rotected
by contracts are more receptive when the coal
salesman calls. The buying public are beginning
to realize that coal for steam-making is getting
scarcer, and that it is not going to be so plentiful
this fall and winter, as has been the case through¬
out the summer. Many of the large producers
who have large contracts are not seeking spot
business. Right now they are being pressed to
take care of contract requirements, and quite a
few of them are beginning to realize that the
labor situation and the car sliortage from now on
are going to be two most vital factors in con¬
trolling output. Labor is becoming much scarcer,
as mines are in position, due to their increased
orders to run to capacity, and it is no doubt
due to this fact that many of the small opera¬
tors throughout the central Pennsylvania fields
who have all along been flooding the markets
with spot coals are now putting a better price
on their coal, and if they do not secure it are
not rushing surplus production to tidewater in
anticipation of finding a ready market for it
here.
The export movement is still hampered for
lack of vessels, Baltimore especially showing a
falling off last week. In fact, only six steamers
reported for cargoes. Hampton Roads shipments
continue very well in line with the high records
previously made. Bunkering business at all ports
is very fair, and at New York especially it is
very active, due to the fact that a great deal of
heavy war munitions are now being shipped
from this port. A great deal of stuff is being
loaded for Russian account, shipments being
made to Vladivostok and Archangel, and steam¬
ers that are taking these cargoes are taking very
large bunkers. One bunkering interest reported
this week that they had sixteen steamers in sight
for bunkers whose requirements would run all
the way from 500 to 1,500 tons each. And other
bunkering firms seem to be equally as well fa¬
vored.
The car supi)ly is very scarce on both the Balti¬
more & Ohio and Pennsylvania systems. Many
mines in central Pennsylvania are reporting that
they are not securing more than a fifty per cent
supply. This, no doubt, really means that they
are receiving alwut the same number of cars that
they received duriirg the summer, Init, due to the
larger requirements just now, the cars furnished
them by the railroads are falling very short of
their needs. As an indication of the heavy in¬
crease of tonnages on some of the eastern roads,
the Baltimore & Ohio Railroad in August han¬
dled 3,009,028 tons, as compared with 2,769,453
tons for the corresponding month of 1914, or a
gain of 239,585 tons. In the same month coke
traffic increased 102,975 tons.
New York harbor ports have some free coal,
but not an oversupply. Prices are firmer, choice
grades commanding five and ten cents over the
average prices prevailing for some time.
The Vessel Situation.
The coastwise vessel situation is practically un¬
changed. There is ample tonnage for current
coastwise business. Former rates are just about
easy.
In the export trade rates to Italy have increased
about 4s in tbe past week or ten days, while rates
to South America have increased from Is to 2s.
VVe quote current rates on freight as follows:
b'rom Hampton Roads to Boston, eighty to
ninety cents is about tbe range ; to Portland and
points east of Boston, from ninety cents to $1.01).
To sound ports, eighty to eighty-five cents. From
Philadelphia to New England points, about five
cents under the Hampton Roads rates.
From New York to Bridgeport or New Haven,
thirty cents; to New London and Providence,
forty cents; to Fall River and New Bedford,
forty-five cents; to Boston, fifty-five to si.xty cents.
Current quotations on bituminous coal in spot
lots are :
F. O. B. F. O. B.
Somerset County — Harbor. Mines.
Best grades . $2.85 $1.30
.Medium grades . 2.0.5 1.1.5
Ordinary . 2. .55 1.05
[October 2
Cambria County —
Best Miller vein .
_ 3.00
1.45
Medium grades .
_ 2.70
1.15
Cheaper grades .
_ 2. CO
1.05
Clearfield County —
Best grade .
1.35
Ordinary grades .
1.00
Indiana County —
Best grade .
1.25
Medium grade .
.95
Maryland —
Georges Creek big vein .
_ 3.15
1.05
West Virginia S])linl —
Ordinary grades .
.87,
Best ^-inrh lump .
1.10
Best grade, run of mine .
_ 2.r,5
.90
Gas slack . .
.C0@ .75
New York Trade Briefs.
George A. Mcllroy of Parrish, Phillips & Co.,
of No. 1 Broadway, returned on Monday from a
visit to the Panama-Pacific Exposition.
E. V. Sidell, the well-known Poughkeepsie, N.
Y., coal dealer, was a New York visitor on
Wednesday.
F. R. Wadleigh, the well-known coal expert of
Philadelphia, sailed from New York on Wednes¬
day on the S. S. Rotterdam for a European trip.
Lucien Hill, New York manager of the Mer¬
chants’ Coal Company of Pennsylvania, is re¬
joicing upon the arrival of a son at his home at
Short hi ills, N. J.
F. M. Adsit, general freight and passenger
agent of the Virginian Railway, with headquar¬
ters at Norfolk, Va., was in New York on klon-
day calling on some of the shippers over his line.
S. D. Fobes, newly-appointed manager of sales
for S. P. Burton & Co., 50 Congress street, Bos¬
ton, was in New York late last week on his re¬
turn to Boston from the central Pennsylvania
regions.
A New York state charter has been granted
the Richmond Hill Coal & Ice Company of
Queens, with a capital stock of $50,000. Incorpo¬
rators are Charles W. Rorothea and Henry Myers,
bpth of Queens.
Application has been made to the New York
Stock Exchange to list $1,813,900 of seven per cent
cumulative preferred stock and $5,500,000 of
common stock of Burns Brothers, New York
City’s great retail coal corporation. The pre¬
ferred is now selling at from $102 to $104 per
share and the common at $78 to $81.
The many friends of Henry Plauth, bookkeeper
of A. W Hillelirand & Co., No. 1 Broadway, were
pained to learn on Tuesday of the death of his
ii'ne-year-old son, who was killed by an automo¬
bile near his home in Brooklyn. The young fel¬
low was on roller skates and had ran out into
the street to get a hat belonging to his smaller
Imother when the automobile struck him.
Diedrich Denker of the well-known New York
retail coal firm of Meyer-Denker-Sinram Com¬
pany, who was taken seriously ill at Denver,
Colo., some time ago while on his way to the Pa¬
cific coast, and who was hurried back to New
York, was doing very well this week. He is at his
home and his condition is considered very fa¬
vorable.
P. B. Hutchinson of the J. C. Haddock Coal
Company, of No. 17 Battery place, who met with
a very serious accident about a week ago, is do¬
ing very well this week. Mr. Flutchinson acci¬
dentally fell from the window of his apartment,
some three stories high, landing on a spike fence,
which resulted in the breaking of two ribs and a
compound fracture of an arm. The spikes made
two large holes in his back. His improvement
bas been most rapid.
Advices from Somerset, Pa., state that the first
Western Maryland freight train to run over the
Somerset & Cambria branch of the Baltimore &
Ohio Railroad went through Saturday from the
Jenner coal field. The train was operating un¬
der a traffic agreement whereby the Baltimore &
Ohio tracks will be used for hauling additional
tonnage of coal from new mines of the Con¬
solidation Coal Company in the Jenner field.
These trains are diverted to the We.stern Mary¬
land main line at Rockwood.
The annual fall tournament of the New York
Coal Trade Golf Association will be held at the
Seaview Club course, near Atlantic City, on Sat¬
urday and Sunday, October 16th and 17th. At
tliis tournament it is expected that a good num¬
ber of golfers from tbe Pennsylvania coal trade
will participate. A very large attendance is ex¬
pected from the New York association, and it is
hoped to make this tournament one of the most
successful that the association has yet held. C. B.
I'lungen of the Keystone Coal & Coke Company
and F. J. Llonan of the Skeele Coal Company are
the most recent applicants for membership.
No. 14]
THE BLACK DIAMOND
279
Philadelphia Trade.
The Coal Trade Gets a Boost in Every
Department — Prices Are on the
Upturn.
Office of The Bl.xck Di.wiond,
1400 Land Title Building,
Phil.\delphi.\, September 29.
b'or many long weary month.s the sympathizers
of the Allies have been waiting for the “hig
push,” but the weariness of waiting for this ac¬
tion has been nothing compared with the hopes
of the coal men that a '“big shove” would occur
that would send prices to a better level. The
changes in quotations of the last few days bear
the earmarks of better returns. The heaviest
contributing quantities that have been responsible,
locally, for an upturn has been heavy stocking
and shortage of railway cars. Healthier still than
these two is the steady forcing of the consumer
to acknowledgment of the fact that he “no longer
rules the roost.” Late comers who defiantly pro¬
claimed, only a matter of two months ago, that
they would contract when they got doggoned
good and ready, have seen the error of their way,
now, when it is too late. Not alone is it hard to
find any of the coal firms who are willing to take
on the burden of supply to April 1 of next year,
but in some quarters orders are to turn down
“spot sales” unless there are actually cars at de¬
livery point that can be turned over to the buyer.
And prices have felt the effect of this change in
conditions. In the Somerset fields the order of
the B. & O. given on September 22 that cars
would go on a percentage basis, was followed by
a severe shortage at the mines that cut heavily
into working time. For this kind of coal the fol¬
lowing quotations were made for spot delivery.
Ordinary $1.00, fair $1.20 and $1.30, best $1.35
and $1.45. No contract figures quoted.
Because of the better mode of delivery over the
B., R. & P. and an excellent supply of cars, the
Reynoldsville-Punxsutawney district has not felt
a tightening as yet of movement of coal. Reflec¬
tion of price stiffening, however, is shown in the
figures quoted for immediate delivery. Slack
sells eighty and ninety cents, run of mine, $1.15
and $1.25; three-quarter screened lump, $1.25 and
$1.50, and smithing, $1.25 and $1.35.
The Greensburg district has been called upon
heavily for stocking purposes by the railways, be¬
sides some heavy deliveries to tidewater points.
There is little free coal offered from this section
and that which can be moved is held at $1.25 and
$1.35 for run of mine, and $1.35 and up for
screened.
Even short period contracts on the Western
Maryland have been restricted during the past
week. Some of the operators have come to the
conclusion that they want lee-way in event that
a sky high market will follow. Spot sales have
been made from eighty-five cents up to a dollar
during the week.
Clearfield coals are showing the effect of a car
shortage already and Miller vein for spot ship¬
ments have been held at $1.30 and up.
■At tidewater, charters from this port have been
hard to get with most of the free bottoms tying
up in the grain trade. Two boats went under
contract during the week for the western range
in Italy at 42 and 43 shillings. However, both
here and at Baltimore, considerable heavy loading
is in progress, and with the cars that are being
released by the railroads that have been stocking,
quite a number of cars will be released for return
to the mines over next Sunday.
The Anthracite Situation.
Stove coal stepped away out as the leader in
the local trade this week and some of the smaller
operators had quite a time arranging to take care
of their orders. This size was held strictly to
circular price and some of the better grades were
even a little better. A change in the weather sent
the hoi-polli squinting at their coal bins and the
movement in the “poor man’s fuel” — the pea size
— increased in consequence. While this coal has
been sold fifty cents on the ton below circular,
since late in .\pril, there has been a noticeable
stiffening in price and even the independents have
been holding pea at $2.05 to $2.15. It is expected
that there will be a flat raise to $2.25 a ton within
the next few days by the companies.
Egg sizes at this time of year are always draggy
and have to be sold at a concession. The under¬
lying cause seems to be that the big institutions,
which are the heaviest users of the size, stock up
heavily in the spring and are not in the market
again until January or h'ehruary.
Most of the mines are running full time and
the overplus is being stocked. In anticipation of
the monthly report of the Bureau of Anthracite
Statistics, it is learned the production for Sep¬
tember will run close to the ligure set by la.st
year’s work.
Following are the Reading circular figures, plus
the state tax, for the coming month :
Locust
Mountain
Lorberry
.Mahanoy
and
and
I..yk’.s
and
Schuylkill
Schuylkill Valley
Shenan
While
Bed
Red
Sizes —
(loali.
Ash.
Shamokin
Ash.
Ash.
Lump ....
$3.50
Steamboat .
:L50
Broken . . .
3.50
$3.75
$4.10
Egg .
3.75
$3.75
4.00
4.35
Stove .
. . . . 4.00
4.00
4.00
4.25
4. GO
Chestnut . .
_ 4.15
4.1.5
4.15
4.25
4.60
I’ea .
_ 2.50
2.50
2.50
2.00
2.75
Buckwheat
_ 1.50
1.50
1.50
1.00
2.35
Philadelphia News Notes.
Murray B. Courtright, of the Cortright Coal
Company, was in New York on Wednesday.
J. Fred Betts of the Goshen Coal Company of
Clearfield, was one of the trade visitors of the
week.
Arnold Gerstelle, sales manager for Percy
Heilner & Sons, was in Boston the forepart of
the week.
George Tyler, who is connected with the John
Lochrie Coal Mining Company at Windber, was
a trade visitor.
H. K. Burkett, president of the .Atlantic
Crushed Coke Company of Greensburg, Pa., was
a trade visitor of the week.
Fred Lockhart, who represents the Hillman
mining interests in New York, was seen among
the trade on Tuesday.
W. J. Kuntz of the Operators Coal Company
of Johnstown, Pa., was in the city for a few
hours on Friday of last week.
H. C. Beury and Mr. H. H. Lineaweaver of
Lineaweaver & Co., left early in the^week in auto¬
mobiles for a tour of New England.
J. W. Swain of Swain Brothers, who has been
spending several weeks in vacation in the Adiron-
dacks, is expected to return this week.
Air. Jardin, head of the coal department of
Pilling & Crane, visited the properties of the
company and the Big Bend mine last week.
.Arthur Kuppinger, sales manager of the Valley
Smokeless Coal Company, was in the regions the
forepart of the week and returned on Thursday.
Floyd Chadwick, the amiable manager of the
local office of the lAavis Colliery Company, spent
a few days of the week with the New York trade.
Charles A. Owen of Johnstown, president of
the Imperial Coal Company, paid a visit to the
local offices of the company this week and also
made a run over to New York.
Bids will be opened by the director of supplies
of the city of Pennsylvania for coal to be sup¬
plied to all departments of . the city, inclusive of
the waterworks department, on October 5 at the
city hall.
W. H. Adams, chief clerk of the Crozer-Poca-
hontas Coal Company, spent a week at Norfolk
going over the change in freight rates as will
apply over the Norfolk & Vestern to that port,
in the near future.
E. B. AIcCue, who was formerly of the sales
force of J. Blair Kennerly, and R. R. Hender-
shott, who was with B. Nicoll & Co. for some
time, have joined the force of Swayne & Co.,
whose offices are in the Land Title building.
The East Bear Ridge Colliery, for which H. H.
Lineaweaver & Co. are the selling agents, made its
first shipment of coal over the new breaker this
week. The total production was about 500 tons
a day and this will be doubled as soon as the
plant gets well under way.
With the ’Phillies way out in front and win¬
ners of the National league baseball contest, re¬
quests are coming into every coal man’s office to
get tickets for out of town associates and friends.
.All sorts of schemes and devices are being ex¬
ploited to satisfy the requests and some of the
popular young men of the trade say they expect
to be grey headed before the affair is over.
.A meeting of the sentries of the Order Ko-
Koal was held in the office of .Ayers Brothers in
the Pennsylvania building on Tuesday, at which
there was a good attendance. The question of
siqiporting the National Coal .Association was the
principal topic touched upon and it was decided
that this was a question that should be thoroughly
gone over by tbe entire membership before any
definite action was taken. The sentries concluded
to call a general meeting, which will be held at
the Hotel Roosevelt on October 21, and the point
at issue will be thoroughly reviewed and whipped
out.
I'herc is a perceptible sbortage of small tDimagi'
cars at tbe present time, and dealers and agents
who have orders for cars carrying thirty-five to
forty-five tons are having quite a time in getting
this equipment. The railways’ answer has been
that the smaller cars were intended for the pig
iron business and now that this trade is running
ninety-seven per cent of capacity, all of this style
of car must be turned into that channel.
“Twenty thousand Ijags of coal to be given
away.” This sign in flaring red, tacked and tied
on various automobiles belonging to the Mason-
Hcflin Coal Company, has caused no end of talk
as a means of advertisement. The bags, however,
would not quite come up to specifications for
charitable purposes, but they are sizeable enough
to give those who obtain them an idea of the
quality of the coal that these retailers have to
offer.
Howard Perrin, local sales manager of the Sus¬
quehanna Coal Company, was about the busiest
man in forty-seven counties this week. Besides
taking care of the heavy fall business of the
company he was one of the directing heads of the
big golf meet at the Merion Golf Club and par¬
ticipated in the tryouts for the championship.
There is also a good tip out to the effect that Mr.
Perrin may be elected to the presidency of the
National Golf .Association.
Major General E. Bowman Daugherty, who
has been at the head of the militia forces of this
state for the past five years, will retire from the
service on Thursday next. General Daugherty
comes from a family that has made military his¬
tory in the state as well as having been identified
with its mining interests for a couple of genera¬
tions. The state law of limitation was the only
cause for General Daugherty’s retirement. He is
one of the active heads in the operating end of
the Susfiuehanna Coal Company’s properties.
Baltimore Trade.
B.iiLTi.MORE, Ohio, September 30. — (Special Cor¬
respondence.) — L’ncler increasing pressure for
fuel to the west and northwest, and a better tone
eastward on all except the export trade, the situa¬
tion at the mines of West Virginia, Maryland
and Pennsylvania is tightening. Real scarcity con¬
ditions as to the mine labor supply and as to cars
are developing. Labor leaders in the mining dis¬
tricts agree with operating interests that a labor
famine is in prospect if the drain of the call of
war and to various war-boom industries keeps up
at mining centers.
Locally the industrial situation here is steadily
improving. All classes of iron and steel works
here are now working to the limit, shipbuilding
yards are deluged with work and various other
industries are reflecting a better feeling. More
business is going on the books of local coal men
for deliveries here than for months past.
Better prices are beginning to prevail at the
mines, although more improvements in that line
would be acceptable to operating interests. Ship¬
pers and middlemen are now better satisfied with
conditions, as more customers finding fuel really
necessary are coming to the front and profits in
that way are better.
Prices to tbe trade may be quoted about as
follows :
F. O. B.
F. O. B.
Fairmont —
Mines.
Baltimore.
1 hree-quarter .
Run oi mine .
$2.38@2.43
. .85
2.28
Slack .
2.08@2.13
Somerset —
Best .
. 1.35
2.53
(jood .
. 1.20
2.38
W. M. R. R.—
Freeport .
. 85@ .90
2.03@3.08
B. & O.—
Freeport .
. 85 @ .90
2.03@2.03
P. R. R.—
Best South b'ork .
. 1.40
2.58
Miller vein .
2.S3@2.S8
Ordinary . .
2.03@2.13
In an endeavor to provide for needs of miners
for homes, the Brothers Valley Coal Company,
with operations in Somerset county, Pennsylvania,
who have headquarters at No. 90 West street.
New York, are erecting eighteen more new dwell¬
ings at their mines at MacDonaldton. They are
also improving their mining section by increasing
the capacity of their lighting plant and are mak¬
ing many other improvements that make for bet¬
ter living on the part of the miners. The mines
have been working full for some time and the
company has every prospect for an active business
throughout the coming winter.
280
THE BLACK DIAMOND
[October 2
New England Trade
Boston, September 30. — (Special Correspond¬
ence. )~Toda.y, the last day of the month, finds
the local wholesale and retail anthracite dealers
more cheerful than they have been before in
months. The wholesale bituminous dealers, while
not crowing over current sales, appear extremely
hopeful regarding the immediate future.
With very few exceptions, local wholesale an¬
thracite houses report the best past week’s busi¬
ness that has been recorded in a very long period.
And the best part of the news is that the buying
of cargo lots has been fully as active as car-lot
bookings. A good-sized tonnage in cargo lots has
been booked for delivery at Boston, Providence,
Lynn, Beverly, Portsmouth and Portland. New
Haven and Boston and Albany all-rail point dis¬
tributers seem to have been a little more aggres¬
sive in buying than those at Boston and Maine
points. The demand has embraced all prepared
sizes and lapped over into some of the other
grades. Buckwheats, for instance, have been in
excellent demand, especially from sound ports, but
local dealers in a number of cases have been
obliged to turn down business, owing to their
inability to deliver the goods. Some houses claim
that certain grades of buckwheats are really
scarce and intimate that an advance in prices for
them would be justifiable.
The working schedules of mines has not been
increased noticeably, but probably will be begin¬
ning tomorrow. Stocks at tidewater shipping
points are not excessive, and as there is no short¬
age in barges or cars, shipments have been and
are made in fairly good time. As the year draws
to a close, however, there is bound to be a short¬
age in cars, and owing to this fact local houses
are urging retail dealers and other consumers to
cover their requirements before it is too late.
Offerings at Mystic Wharf have not been plenti¬
ful, nor are they liable to be for some time to
come, for a majority of houses report that they
will have all they can do to fill contract orders
for the next month at least. Some dealers go so
far as to predict premium coal at Mystic Wharf
before snow flies. Stove and egg find a ready
market at $5.85 per ton, alongside Boston Har¬
bor, and nut at $0.10. Pea is moving rather slow¬
ly, but is unchanged at $4.05, Boston Harbor.
Birdseye buckwheats command $2 per ton f. o. b.
New York and No. 3, $1.80. Aside from Port¬
land, very little business has been done in Maine,
but the provinces trade has improved very satis¬
factorily since last reports. Not a word has been
heard here in regard to possible price reductions
in anthracite since the Interstate Commerce Com¬
mission announced the extension of effectiveness
of their recent ruling on freight rates until De¬
cember I.
While no noticeable improvement in the demand
for bituminous is noted here, the market is senti¬
mentally firmer. Firmer, because of greater in¬
dustrial activity throughout New England and be¬
cause of the general belief that trade conditions
will warrant an advance in prices before another
month has passed. At Mystic Wharf, for in¬
stance, the market for Pocahontas and New River
is now quoted at $3.68 per ton f. o. b. cars, but it
is very doubtful if much tonnage has been booked
at more than $3.60. It is a fact, however, that
shippers are much more reluctant to accept the
lower figure than they were a week ago. The
f. o. b. Hampton Roads market for these coals
is reported as steadier at $2.85 per ton. That is,
there is less disposition on the part of shippers
to cut prices. Supplies of southern coals at
Hampton Roads ports are still large, but not to
the extent that they have been.
Georges Creek at Mystic Wharf is offered and
has been sold at $3.90 to $4.00 per ton, mostly the
latter price. Pennsylvania bituminous is still quot¬
ed on a basis of ninety cents to $1.50 per ton, and
some local houses claim business is slightly better.
One house in particular reports that it has been
quite successful in bidding against Nova Scotia
coals and has secured good prices. The awarding
of the Boston & Maine bituminous contract is
apparently a dead issue. The company says the
award has been postponed indefinitely. No other
large orders are in view at the moment.
The marine freight rate market presents few
new features. The offerings of bituminous space
are larger than requirements, but rates hold up
remarkably well. They are generally seventy-five
to eighty cents per ton from Hampton Roads to
Boston, and seven to ten cents per ton from Balti¬
more. Anthracite rates from New York to Bos¬
ton are fifty and fifty-five cents per ton.
Boston Trade Notes.
Tlie Boston Towboat Company, a subsidiary of
the Massachusetts Gas Companies, has sold the
tug Orion to Ryan Company of Port Arthur,
Texas. The boat was built in 1906, and was one
of the largest of the towboat fleet.
The Boston Coal Company’s old wharf at .\1-
bany street, backing on the South Cove, is lac¬
ing dismantled.
P'ormal announcement is made that Mr. S. D.
Fobes, for many years connected with the New
England Coal & Coke Company as sales man¬
ager, is now associated with S. P. Burton & Co.,
No. 50 Congress street, as manager of sales.
The John J. McCarthy Company of Easton has
been granted a Massachusetts charter. The com¬
pany has a capital of $25,000, and is to engage in
a coal and wood business. The incorporators are
Mary V. McCarthy, Mary M. Kelleher and Alice
L. McCarthy.
The local receipts of anthracite from April 1
to August 31, inclusive, were 747,685 tons, or
178,218 tons less than those for the same period
last year and 68,467 less than those for the same
time in 1913. The receipts of anthracite were
2,018,359 tons, a decrease of 178,193 and 239,935
tons, respectively.
Six men, riding in a jitney bus, recently ran into
a truck of the Edison Electric Illuminating Com¬
pany of Brockton standing at the side of a road.
The bus was quite badly wrecked and the six
men more or less damaged. The Brockton jokers
are saying it does not pay to run up against the
Illuminating company.
Two men, Arthur Given and Ollie Murray,
while at work in the coal pocket of the Exford
Paper Mill, at Rumford, Me., were buried by fall¬
ing bituminous. Given lived but a short time
after being dug out from the huge heap. Mur¬
ray received but slight injuries. A man engaged
in digging out the men was struck on the head
by a large lump of coal and rendered unconscious
for some time.
Machael Capollo, who runs a coal, wood and
ice store in Roxbury, was recently robbed about
midnight of about $400 by two men, according
to his story to the Boston police. Michael closed
his store at 11 :30 p. m. ; the two men asked him
for a drink of water, took it, then his money and
locked him up in the ice chest. Coal dealers
should take notice and not keep their places of
business open so late at night.
The combined net earnings available for divi¬
dends of the Massachusetts Gas Companies for
August were $188,548, or $31,154 more than those
for the corresponding month last year. The sub¬
sidiary companies and the parent company have
declared the usual quarterly dividends. Following
are the earnings of the coal department for Au¬
gust, with comparisons (in tons) :
N. E. C. and Coke . $32,488 $53,405 $ 58,701)
N. E. Coal . 56,090 22,774 42,956
Federal Coal . 8,748 6,565 3,273
Boston Towboat . 2,318 4,801 3,710
Total . $99,645 $87,547 $108,0.')1
Buffalo Trade.
Buffalo, N. Y., September 30. — The anthracite
shipments by lake for the past week showed some
improvement, the total reaching 100,750 tons,
which cleared as follows : Duluth-Superior, 36,-
800 tons; Milwaukee, 32,100; Chicago, 26,400;
Lake Linden, 2,800; Green Bay, 1,350; Depere,
1,300. The docks at the other end of the lakes
are reported by shippers to be well supplied with
coal and further shipments are being held up to
a large extent for lack of dock room. Large
vessels are now leaving here light in many in¬
stances. The shippers say there is a scarcity of
small tonnage, so that it is not an easy matter to
supply coal to some of the smaller ports. For
this reason the freight rates are expected to be
on a higher level this fall.
Not much is being done in selling anthracite
to dealers. Many of them have little or no shed
room to take the coal. They find their customers
are making but few demands upon them, but an
increase in trade is looked for this coming month.
The weather has been favorable to coal selling
for the past few days, and stocks in dealers’ Ijins
have been reduced somewhat. Independent com¬
panies are expecting a good month and say that
business has picked up with them during the past
two weeks.
The bituminous trade continues on a steady
basis and prices are tending toward more
strength. Operators are raising their prices from
5 to 10 cents per ton, regarding the outlook for
business for the remainder of the year as much
improved. This additional strength in the mar¬
ket is leading to a larger amount of buying, and
there is a better demand for the different sizes
than a short time ago, when a large part of the
inquiry was for slack. There is still a pretty
good business doing in slack, with very little
surplus offered at any time. The largest con¬
cerns which frequently have plenty of slack to
sell are now well sold up on it.
It is noted that some stocking up is being done
by purchasers in anticipation of a further short¬
age of cars and a slower movement of coal. The
outlook is for a considerable car scarcity this
winter and already small gondolas are reported
to be hard to get. Railroad movement of coal
is somewhat slower than it has been, largely be¬
cause the roads now have a large quantity of
freight of all kinds to handle. Men are none too
plentiful at the mines and increasing difficulty in
getting miners is expected.
Buffalo Trade Briefs.
Fred J. Durdan, sales agent of the B. S. Ham-
mill Fuel Company, has returned from a business
trip of several days to Pittsburgh and vicinity.
C. J. Renwick, sales agent of the Keystone
Coal & Coke Company, has returned from a
business trip to New York and other eastern
cities.
E. S. Keay, sales agent of the Skeele Coal Com¬
pany, has returned from a business trip to Chi¬
cago, where he accompanied President E. J.
Skeele.
Grant H. Jones, vice-president of the Shawmut
Coal & Coke Company, is spending two weeks
on an autornobile trip through the state, accom¬
panied by his family.
The Lackawanna Steel Company is reported to
be working very close to capacity, having received
a large rail order for foreign shipment, as well
as one for war supplies.
A new wholesale coal office is to be started in
the downtown district by W. J. O’Shanecy, who
for some time past has been on the sales force
of Thorne, Neale & Co. in this territory.
F. L. Garrison has resigned his position as
sales agent here for the Pittsburgh-Westmore-
land Coal Company, which he has held for the
past year, and has gone to Fostoria, O., where he
will enter into the packing business.
The Horace A. Noble memorial chapel is to
I)e dedicated by the Knights Templar of this sec¬
tion of the state on October 30th, at which time
a grand commandery dinner will take place. The
building was erected in memory of the former
head of the coal firm of Frank Williams & Co.,
who was a prominent member of the Masonic
fraternity.
The Lehigh Valley Railroad Company has
about completed the new coal-handling plant
which has been in process of construction for
some time. It is a modern steel and concrete
ground-level plant for handling coal into vessels
and is operated by electricity. It consists of two
rocking cradles for unloading box cars and four
fixed hoppers for unloading open cars. The coal
will be conveyed by apron flights to a telescopic
chute in the boat which is being loaded. It is
expected that 500 cars can be unloaded in ten
hours. Besides quick handling for vessels, the
plant insures freedom from breakage of coal. The
first car is likely to be unloaded this week.
Omaha Trade.
Omaha, Neb., September 30. — (Special Corre¬
spondence.) — The market has been firm with a
good demand for domestic coal, very little coal
of any kind being offered in transit. Shipments
have been heavy with the exception of Kansas
nut coal.
General business conditions are slightly im¬
proved on account of weather conditions being
more or less favorable to the corn crop.
The following market prices prevailing:
Southern Kansas — •
Mines
$2.00
Omaha
1 35
Franklin County —
Lump .
Egg .
Nut .
Williamson County —
. 1.60(3)1.75
. 1.60(3 1 75
. 1.00(®1.75
. 1.45^)1.60
4.00(34.15
4. 00^.34. 15
4.00@4.15
3.S5@4.00
3.S5@4.00
5.85
5.35
Egg ‘ .
Rock Springs —
Lump .
Nut .
. 1.45@1.00
2.15
1.60
Arkansas Anthracite —
r.ump . .
3.70
3.95
6.60
6.85
Routt County, Colo. —
Lump .
3.00
2.25
6.75
6.00
1.25
5.00
Walsenburg District, Colo. —
3.00
6.75
Nut * .
2.25
6.00
Pea .
1.25
5.00
rc •
1
Phe Black Diamond
Vol. 5S. No. 13
OCTOBER 9. 1913 $3.00 Ter Year
Rockefeller’s Social Plan for Colorado Mines.
The trip of John D. Rockefeller, Jr., to the
coal mines of Colorado came to a conclusion
on Saturday of last week. The closing incident
of it was a meeting presided over by the
capitalist himself and attended by the officers
of the Colorado Fuel & Iron Company and
representatives of the miners.
The concrete result of this meeting was the
presentation by Mr. Rockefeller of a plan for
regulating in future the relations between the
company and its employes. Appended to
that plan was a form of agreement, of which
the following is a copy:
The Proposed Agreement.
“It is mutuallj" understood and agreed that,
in addition to the rights and privileges _ guar¬
anteed the employes and the company in the
industrial representation plan herewith, the fol¬
lowing stipulations respecting employment, liv¬
ing and working conditions shall govern the
parties hereto from the date of their signatures
hereon to Jan. 1, 1918, and shall continue there¬
after subject to revision upon ninety days’
notice by either of the parties.
“The charge to employes for dwellings with¬
out bath shall not exceed $3 per room per
month.
“The present uniform charge of 40 cents
per electric light per month, with free light
on porches, shall not be increased.
“There shall be no charge for domestic wa¬
ter except in cases where the company is
obliged to purchase the same; in such cases
the charges shall be substantially the cost to
the company.
“The rates to be charged employes for pow¬
der and domestic coal shall be substantially
their cost to the company.
“To encourage employes to cultivate flower
and vegetable gardens, the company agrees to
fence free of charge each house lot owned
by it.
“The company will continue its practice of
removing garbage free of charge.
“As the need becomes manifest, the cornpany
will continue its present policy of providing as
rapidly as possible suitable bathhouses and
social centers in the nature of clubhouses for
the employes at the several mining camps.
“Eight hours shall constitute a day’s work
for all underground employes. This shall
means eight hours exclusive of the noon and
the time required to go and come from the
mine opening to the place of employment.
“Nine hours shall constitute a day’s work
for all outside labor, except firemen and engi¬
neers.
“All employes shall be paid semi-monthly
by check.
“No deductions shall be made from earnings,
except where authorized by employes.
“No change affecting conditions of employ¬
ment, with respect to wages or hours,_ shall
be made without giving thirty days’ notice, as
provided by statute.
“The schedule of wages and the working
conditions now in force in the several districts
shall continue without reduction, but if prior
to Jan. 1, 1918, a general increase shall be
granted in competitive districts in which the
company does not conduct operations, a pro¬
portional increase shall be made.
“For this purpose a joint meeting of the
miners’ representatives and proper officers of
the company shall be called within thirty days
after the increase in competitive districts is
effective to discuss and determine a rnethod
for fixing the schedule in the new districts
affected.’’
The Bigger Plan.
Ahead of this proposed agreement was an
elaborate document, referred to by Samuel
Gompers as “the constitution of Mr. Rocke¬
feller’s union.” It is something more, how¬
ever, than merely a union plan. It takes into
consideration not only wages and the forcing
of the operator to surrender to the miners.
It Blocks Out the Unions, But Auto¬
matically Increases Wages to Equal
Those in Competitive Fields — A Tactical
Mistake or Two.
It touches on every phase of life in the mining
camp. For example, there is to be a general
organization which is to be subdivided four
or five ways.
One subdivision is a joint committee which
shall work all the while on industrial co-opera¬
tion and conciliation.
Another subdivision is the joint committee
on safety and accidents.
A third subdivision is a committee on san¬
itation, health, and housing.
The fourth subdivision is a joint committee
on recreation and education.
The sub-committees, of course, are appointed
by the general organization. This latter is
gotten together on the representation plan.
That is, there is to be elected to the “general
assembly” one miner representing each 150
wage earners. It is assumed that these wage
earners shall be employes of the Colorado Fuel
& Iron Company. One man who has studied
the plan very carefully made this week the
following statement:
“The big features in Rockefeller’s substitute
for the United Mine Workers of America are
the contractual rights of the men and the
right to belong to any union they choose.
“They also have final appeal from all of the
elaborate courts provided by Mr. Rockefeller
to the Colorado State Industrial Commission.
The findings of this body are not reviewable
and consequently are binding on both the em¬
ployer and employes.
“The contract, if approved by the referen¬
dum vote, will run for two years from the first
of next January and will then run indefinitely
unless terminated, after notice of thirty days,
by either side of the contract.
“The men receive, by the terms of the con¬
tract, practically all the demands made by the
United Mine Workers of America, except the
recognition of the union. The men are assured
against a reduction of wages for the term of
two years. But they are not limited to those
wages, because if a competitive field gets an
advance, the men also will get an advance.”
Attitude of the Miners.
The referendum vote which is being taken
this week indicates that the miners are voting
for the plan almost unanimously. For exam¬
ple, up until Monday night the following votes
had been taken: Berwind — for, 140; against,
9; Tobasco — for, 138; against, 25; Rouse — for,
139; against, 6; Lester — for, 97; against, 9. The
vote is all the more striking in view of the
fact that in many of these camps there are
some members of the United Mine Workers.
The attitude of the union is particularly in¬
teresting in view of two clauses that are in
the statement which precedes the agreement.
One of those clauses says:
“There shall be no discrimination by the
company or by any of its employes on ac¬
count of membership or non-membership in
any society, fraternity, or union.”
The peculiar phrasing of this paragraph—
“no discrimination on account of membership
or non-membership” — commits the company
and the whole plan to an open shop. Another
clause in the preamble says:
“The right to hire and discharge the man¬
agers of the properties and the directors of
the working forces shall be vested exclusively
m the company and, as especially restricted,
this right shall not be abridged by anything
contained therein.”
The clause is rather clumsily worded, but
it means that the company intends to manage
its own business.
Regardless of these two things which put a
fence around the mine workers’ union and tell
exactly what it can and cannot do, the vote,
as indicated in camp so far, is overwhelmingly
in favor of the plan. As might be supposed,
the officers of the United Mine Workers are
very bitter against the whole idea. They do
not want to see anything put into effect which
does not pre-suppose the complete mastery of
the mines by the union. Perhaps the best ex¬
pression of the union notion is contained in
the sarcastic comment by Samuel Gompers,
which is as follows:
“So Mr. Rockefeller has formed a union —
a union of his employes of his Colorado Fuel
& Iron Company — and perhaps imagines he
has solved the problem of just relations be¬
tween himself and his employes. But with all
his wealth and all his brains, and the brains
that he could buy and suborn, he has missed
his mark.
“Imagine an organization of miners formed
by the richest man in the world, who employs
its members. What influence can such a
pseudo union have to insist upon remedying
of a grievous wrong or the attainment of a
real right?
“And what about the representatives of the
men ‘sitting around the table’ with Mr. Rocke¬
feller and his angelic representatives out in
Colorado, should the miners’ spokesman have
temerity of insistence in the rightful demands
of the miners?”
What the Union Says.
Also a committee representing the miners’
union issued a statement on last Sunday. It
said that “a certain degree of social better¬
ment” was included in the program, but held
that it was “a poor substitute for the privileges
that can only be secured through industrial
democracy and collective action on the part
of the wage workers.” The committee then
claimed credit for “forcing” Mr. Rockefeller to
adopt this program and then went on to say:
“Exposed in their nakedness by the dis¬
closures of a federal investigation,” continued
the committee’s statement, “discredited in the
eyes of every fair-minded man and woman,
stained by the awful crime of Ludlow, it finally
dawned upon the coal operators that an effort
must be made to redeem themselves in the
public mind.
“The document arbitrarily fixes living and
working conditions until January, 1918, with
a proviso that for any increase in wages
granted in competitive districts a proportional
increase shall be made; no doubt with the end
in view of safeguarding the competitive ad¬
vantage the company now has over the Wy¬
oming, Montana and other adjacent union
fields, where the union scale is much higher
than in Colorado.
“The evils that are fundamental will be erad¬
icated only when the men are represented by
a labor organization powerful enough to com¬
pel recognition of the industrial, political and
civic rights of its members, and capable of
writing these principles into the joint agree¬
ment along with the rights claimed by the em¬
ployer.”
As further evidencing the “paternal” con¬
trol the company exercised over the plan, the
committee pointed out that the plan as drawn
up by the officials was printed several days be¬
fore this afternoon’s Pueblo meeting and that
the approval of the miners’ representatives was
merely a matter of form.
In unfolding details of his new scheme to
the miners’ delegates Rockefeller denounced
certain labor leaders, without mentioning their
names, as “wicked and vicious” and the “worst
enemies of the laboring man in this country.”
“Because of the misrepresentation,” he said,
“that certain untruthful leaders spread over
this country, men marched by my office in.
(Concluded on page 289.)
282
THE BLACK DIAMOND
[October 9
Members of the American Mining Congress.
American Mining Congress Plans an Exposition.
The American Mining Congress will hold
its convention next year in Chicago. The
principal feature of that convention will be
a mining show, or exposition which will ex¬
ceed m scope anything of the sort that has
ever been atteiiipted in the mining industry.
This was decided at the meeting in San Fran¬
cisco on September 23.
The story of how this decision happened
to be made, is decidedly interesting and im¬
portant. Two years ago, the American Min¬
ing Congress was to hold a convention in
Philadelphia. It had under consideration
some mighty important things and wanted to
get the mining men there so that the pro¬
posed programs could be discussed and mapped
out. It was recognized from the start that
it is difficult to get the mining men together
at any central point for discussion alone; they
may like to talk but thej" will not travel far
to indulge their taste. So, it was realized
that there must be some other attraction. The
question was: What shall it be?
Just about the time, this discussion was
up. The New England Coal Association held
a convention at Boston. One of the biggest
drawing cards of that convention was the
machinery exhibit.
This not only pleased the exhibitors im¬
mensely, but it attracted quite a number of
retailers to the convention. This indicated
to mining congress men the attractive power
of an exhibition.
Even prior to that time, or in 1911, the
Mining Congress in Chicago had put a ma¬
chinery exhibit at the Hotel La Salle. This
also had proved both attractive and popular.
Still, it was on a very small scale.
With these things in mind, it was sug¬
gested to the officers of the Mining Congress
that a representative mining exposition would
be a mighty good thing. They tried it out
in Philadelphia, but the plan was success¬
ful only in part. This was due to the fact
that not enough time was given the exhibitors
to get together anything like a representa¬
tive exhibit of their goods. Also, the min¬
ing men generally knew very little about it.
Along this summer, the future of the ?ilin-
ing Congress was discussed very seriously
by the officers. The idea of an old-fashioned
convention did not seem to appeal to them
as strongly as it once had. They thought they
sav.- a growing lack of popular interest in
discussions of economic and technical sub-
Its Convention at Chicago Next Year
Will Center in a Show Never Equaled
by the Mining Industry — Scholz Re¬
elected President.
jects. After discussing the question broadly,
they believed that instead of merely inviting
the people interested in the mining business
to get together and discuss their troubles, the
gathering should take on a more spectacular
character. They decided it would be well to
invite the public into the meetings so that,
by a spectacle, they could come to under¬
stand something of the intricacies and diffi¬
culties of the mining business.
It was seen then that the best plan would
probably be to hold a great mining show.
This would give an opportunity for manu¬
facturers of all kinds of machinery to put
their devices on display, and thus call the at¬
tention of the mining men to the various
stages of mechanical progress. Also it would
be an attractive thing if some exhibit could
be gotten up to tell the people themselves
how mining is being done; how coal is han¬
dled at various stages and, particularly, how
coal is burned.
W'ith this point in mind, the question arose
as to where was the best place for holding
such a show. It was concluded that since
Chicago is centrally situated and is admira¬
bly served by transportation lines, and since
it is a natural point of interest to people
from all over the country, that was the place
to hold the exposition. This plan was sug¬
gested by secretary Callbreath, and was put
up to president Scholz for decision.
However, Mr. Scholz had been through
the meeting of the Congress in Chicago in
1911, and had done a great deal towards mak¬
ing that the best convention the Congress
had ever held. He knew the amount of work
that was involved and the expense incident
to such an exhibition. Naturally he did not
want to go into this undertaking unless he
was convinced that Chicago wanted the show
and that those who would be asked to pa¬
tronize the exhibit were in accord with the
movement. He decided, therefore, to make
some inquiries and, in a way, to sound out
Chicago’s seiitiment on that question.
The first man to whom he appealed was
C. L. Dering, president of the Chicago As¬
sociation of Commerce. Mr. Dering was con¬
vinced that the association would be perfectly
willing to go behind a big exhibition of this
kind. Then it was suggested that the best
way to do would be to sound out the manu¬
facturers of mining machinery. In accord¬
ance, the Association of Commerce wrote a
number of letters to these concerns asking
them their attitude on such an effort. They
responded almost unaminously saying that
they were in favor of it and that they would
support it.
With this data in hand. President Scholz
laid the whole matter before the Mining Con¬
gress convention in San Francisco, and asked
an expression from every man in the room.
No objections were offered, but on the con¬
trary quite a great many approved of the
whole plan. In consequence, it was unami¬
nously decided that the next meeting should
be at Chicago and the principal features should
be a mining exposition.
The meeting which has just closed at San
Francisco was tremendously interesting on a
number of accounts. One of the questions
which had come up for discussion was as to
how the Congress stood on the question of
what IS known in the west as the apex law.
That law, in substance, is that if a vein of
mineral outcrops on the surface of a man’s
land, he owns the vein wherever it may lead.
That is, it may start on his surface claim, but
it may very soon cross his lateral lines and
go over on a claim controlled by someone
else. Still if the vein outcrops within his lines,
he owns it and can follow it wherever it
leads. The Mining Congress made its posi¬
tion perfectly clear by saying that it was
againsr the apex law. On the contrary, it
is m favor of the law which applies to all
other mineral districts: that is, a man owns
what is found only within his own lateral
lines. This stand by the Congress brought
to its support a great many western mining
men who have been fi.ghting the apex law.
.A.S a matter of fact, this stand was the one
thing which has solidified the support of the
metal mining men behind the Mining Con¬
gress. *
Another question which came up for con¬
sideration was the matter of “safety first.’’
The discussion on this was quite lively. For
example, some of the insurance companies and
some of the men representing the Bureau of
Members of the American Mining Congress Attending a Banquet Given to Van H. Manning, New Director of the Bureau of Mines.
No. 15]
THE BLACK DIAMOND
283
Photographed at the San Francisco Meeting, September 21, 1915.
Mines were disposed to take the stand that
many industrial accidents are due to negligence
on the part of the company or its officers.
They were not opposing the mining men, but
were really pleading for more equipment to
assure safety. The practical mining men
jumped to their own defense by saying that
mine accidents could be limited very mate¬
rially if the men would only do a little by
way of protecting themselves. That is, they
held that safety appliances are useless unless
the men are keen to look out for themselves.
For example, a very strong statement was
made by John P. Reese, that sixty per cent
of the so-called inevitable accidents could be
prevented if the men would subject them¬
selves to discipline and would heed the ad¬
vice and the warning of the officers and look
out for their own welfare.
One of the most affecting things at the
whole meeting of the Congress was the memo¬
rial service given to Dr. Holmes. It will be
remembered that the plan was to set aside
one session as such a memorial. It was in¬
tended that addresses should be made by
each member of the Holmes Memorial Com¬
mittee. It was the intention also, to hold a
meeting of this Memorial Committee after
the service and there to decide upon the
character of some permanent testimonial to
Dr. Holmes.
At the memorial service, Van H. Manning
read a historical sketch of the late director
of the mines. Also several extremely im¬
pressive addresses were made, one of the most
so being made by Mr. Callbreath, the secre¬
tary of the Congress, who had worked with
Dr. Holmes so long and so intimately.
At the conclusion of the meeting, it was
decided that instead of taking action right
there on the character of the permanent me¬
morial, the committee should leave that mat¬
ter with a sub-committee which was appointed.
At the conclusion of the session of the Min¬
ing Congress, there came the election of
officers for the ensuing year. Carl Scholz was
elected president over his protest. He said,
in the first, that he had given more of his
time than he thought he should to this kind
of work. He asked to be relieved from this
office, not because he was not interested in
the work, but because he thought a change
would be good for the organization and be¬
cause he did not feel justified in devoting more
of his time to it.
However, the Congress out of consideration
of the other matters decided to overrule Mr.
Scholz and elected him for the third year.
The principal consideration of the Congress
was: The decision had already been reached
Allentown, Pa., October 4. — {Special Cor¬
respondence.) — -“Every town has its retailing
problem. Some are serious, some insignifi¬
cant, but those hardest to efface or erase are
those caused by a condition for which no
one seems responsible.”
This is taken as a quotation from a recent
article in one of the leading magazines, and
by one of the foremost business writers of
the country. Allentown folks have been la¬
boring under a condition that was thrust upon
them a matter of ten years ago, their coal
merchants have awakened to the fact that
they in particular have had to battle a long
time with the condition, and while no par¬
ticular effort was made to combat it, it is
gradually extinguishing itself.
About ten years ago, the Lehigh Valley
to hold the next meeting at Chicago, and to
stage a great mining show. Mr. Scholz, liv¬
ing in Chicago, and having done so much to
arrange for this exposition, would naturally
be the man to carry out the plan. Also he
would be relieved from a certain amount of
work by the fact that Mr. Callbreath ex¬
pects to spend quite a lot of time in Chicago
m the next year, and by the further fact that
C. M. Moderwell has been made a director and
will naturally do quite a good deal of work
to assist Mr. Scholz and Mr. Callbreath in
preparing for the next convention.
Mr. Scholz finally consented because he
said Chicago has so many earnest coal men,
who would be glad to help him out. There¬
fore, he felt that the work for the next year
would not take up too much of his time.
railroad built a loop line that encircled the
good city. Now a loop line under ordinary
conditions is one of the neatest little assets
that any city can have.
But loop lines have to earn their own
bread and butter and to bring in revenue
there must be revenue producers. Today
Allentown has a population of about 50,000
souls. Ten years ago, the town folks were
not so numerous. But the advent of the loop
line brought on the scene an extra number
of coal dealers. Anybody could sell coal,
seemed to be an accepted axiom. And a con¬
tributing cause was a representative of the
railway, who encouraged as many persons
as wanted to get in the game to “set up
a yard.”
Well, to make a long story short, about
five years ago there were forty-five coal
dealers supplying the wants of this city of
fifty thousand — about fifteen too many ac¬
cording to ordinary calculations. Some made
a living and some “wished” their yards on
to successors for about five years. Then there
came a pause and a disposition to analyze the
condition. Since that time there has been
a reduction in the number of retail dealers
to about thirty-five in all.
The man who thinks that retailing coal in
Allentown is an open and shut cinch, if he
is cautious in any way, may find that he is
due for an eye-opener, when he goes inquir¬
ing as to prospects of success. He is told
of the hard task that the ten who fell by the
wa3^side have tried to surmount and failed.
Allentown retailers have many times looked
at other cities and wondered why their volume
of business per firm has not appreciably in¬
creased. Someone found the answer about
five years ago, and it is no trade secret among
those who have inquired.
Incidentally in Easton, Pa., the city dads
thought it was good sport to place the re¬
tail coal dealers on the carpet some few
weeks ago, and demand to know why the
price per ton for summer deliveries were
higher in that town than in Allentown. When
the matter was sifted to the bottom, one Al¬
lentown dealer was invited to come to Easton
and tell how it was that he could deliver
coal to the householders at such a price as
it was alleged in Easton that he was doing.
The Allentown dealer accepted the invita¬
tion and it is said that his principal explana¬
tion was that he was cutting the price of
coal as a matter of advertisement. Business
conditions were so keen, he said, he had sold
coal without a profit with the hope of realiz¬
ing on future orders.
The New Vork coal merchants annually hold a clamhake at some point on the shore. The regnilar
outinff was held this year at Tallapoosa Inn on Pelham Bay, Bong- Island, on September 23d. This is
a reproduction of a photograph taken at that time.
A City Without Hope.
284
THE BLACK DIAMOND
[October 9
Eastern Ohio Operators Want Lower Rates.
Cleveland, Ohio, Otober 7.— (Special Corre¬
spondence.) — At a conference in X\\t Leader-News
building last ^Monday officials of the New York
Central, Pennsylvania, W heeling & Lake Erie and
Baltimore & Ohio Railroads were informed by the
operators of the eastern Ohio field that if the dif¬
ferential between the Ohio and West Virginia
fields is not increased by next Monday, the matter
will he taken to the state public utilities commis¬
sion at once for adjustment. Eor some months
negotiations have been in jirogress between the
operators and the railroad officials on this point,
hut One delay after another has taken [iTace and
nothing has ever come of them. Now the oper¬
ators have come to a point where they feel that
something must be done.
The rate on all-rail coal between the eastern
Ohio field and Cleveland is ninety cents, while the
rate from the h'airmont field to Cleveland is $1.15,
a difference which the Ohio operators claim is not
in proportion to the difference in distance. On a
mileage basis they assert that the eastern Ohio
rate should be around seventy cents.
Eastern Ohio operators feel that the roads
should make a reduction to a basis equivalent to
that allowed the Hocking Valley operators on coal
shipped to Toledo. They secured a reduction of
fifteen cents from the old rate of $1 through the
public utilities commission, and the new rate has
iieen in force for some time, having been sus¬
tained by a decision of the supreme court.
The lower cost of mining and other favorable
conditions in the Fairmont field very much more
than offsets the difference of twenty-five cents fin
the freight rate, it is claimed, and makes it irhpos-
sihle to market the eastern Ohio coal at a price
that will jiay the high mining rate and yield cVen
a small profit.
Since the roads reaching this market receive the
coal from roads operating through Wek Vir¬
ginia, representatives of the latter attended the
conference. They objected to either an increase
in the rate from Fairmont or a reduction in the
rate from the Ohio field, especially to the latter, if
they are asked to maintain the West Virginia rate.
The ojierators have employed Judge O. P. Goth-
lin, formerly a member of the public utilities com¬
mission, to secure data and prepare a petition to
he submitted to the commission. This will he
ready and in case the railroads do not make a
satisfactory adjustment of the matter, it is alto¬
gether probable that it will he presented next
Alonday. The railroad representatives asked for
more time, because of a meeting of their execu¬
tive officials scheduled to take place in New York
on Tuesday of this week.
It is said the operators were given to under¬
stand that a reduction would be made in their
rates at the time the Hocking Valley case was
decided, hut nothing was ever done about it,
although the field has suffered from competition
with W^est Virginia because of the favorable con¬
ditions under which the operators in that state are
doing business.
The Latest Chapter in Price-Fixing Litigation.
Anotlier most interesting chapter has been
added to the already copious legal literature
on ])rice-fixing, particularly as to the right of
the manufacturer to tell the trade what they
shall sell his product for. It comes through
the case of the American Graphophone Com¬
pany \s. the Boston Store of Chicago, a cut-
price department store, which has just been
decided. One of the counsel in the case has
been kind enough to send me a copy of the de¬
cision, and I feel like discussing it briefly, for
I want the readers of these articles to he up
to date on this most important question.
The point of the case was whether a manu¬
facturer, selling a patented article to a retailer
direct, could legally contract with that re¬
tailer, before he sold him, to resell only at a
fixed price, and, if the retailer broke the agree¬
ment, could the manufacturer enforce it by
getting an injunction (the only really effective
way) or must he sue for damages, or was the
contract wholly unenforceable liecause in re¬
straint of competition?
The American Graphophone Company makes
patented talking machines, or controls the
patents on them, 1 don’t know which, and it
matters not which. This company sold its
graphophones to the Boston Store, a typical
cut-price department store, hut before it did
so it made the Boston Store agree to resell
only at certain prices which the American
Company had fixed. The Boston Store signed
the written agreement, got the goods, and then
cut the life out of them. Application for in¬
junction was promptly filed by the American
Graphophone Company, on the legal theory
that the American Company has a legal pat¬
ented monopoly of its talking machines, and
therefore had a right to sell dealers on its own
terms. Where a dealer agreed to those terms
and got the goods on the strength of its
agreement, it could not fairly he allowed to
break its agreement and disorganize the manu¬
facturer’s business.
'I'hc Boston Store defended on the ground
laid down (on different facts) in some of the
United States Supreme Court decisions, viz.,
that the American Graphophone Company
wdien it sold its machines, parted with title to
them, and with title went all power to control
the ])rice. Therefore the price-fixing agree¬
ment was illegal, and the Boston Store could
make such an agreement, get merchandise on
the strength of having made it, and then do
as it liked.
If this doctrine should he upheld, the manu¬
facturer would he at the absolute mercy of
every cutter. The only thing he could do
would he to refuse to sell at all.
But the United States Court for the North¬
ern Illinois District did not uphold this doc¬
trine. In fact it scotched it forever unless it
is reversed on appeal. The court in this case
decided that a manufacturer owning a patented
(and by the same token a trade-marked or a
copyrighted) article, can tie up the jobber or
the retailer to whom he sells, to resell it at a
fixed price, and if the dealer violates the agree¬
ment, he can be stopped by injunction. The
price-fixing agreement, however, cannot he
made by any notice, pasted on the package.
It must he done by regular contract, signed
and agreed to by both parties.
The court’s final conclusion, which really
contains the gist of the decision, is:
“That an agent or vendee of a patentee (that
is, any one who buys patented merchandise
from the owner of the patent), may, by direct
covenant or agreement, he hound to the ob¬
servance of price restriction, imposed as a
condition on which exclusive right of sale by
the patentee i.s being exercised.’’
At first glance this seems in conflict with
certain well known decisions of the United
States Supreme Court, but tne Illinois United
States Court shows clearly that it is not. The
United States Supreme Court decided in sev¬
eral recent cases, the most notable of which
was Bauer vs. O’Donnell (the Sanatogen case),
that owning a patent or trade-mark or copy¬
right did not alone give the right to fix the
resale price, and it said further that the resale
price could not be controlled merely by the
printing of a notice on the package. The
notice scheme was a favorite with manufac¬
turers until the Supreme Court said it was
worthless. There was nothing in any of the
decisions referred to which even impliedly
denied a manufacturer’s right to tie up a buyer
to resale at a certain figure, proinded it was
done properly. The court in the graphophone
case says it is done properly and legally when
the seller and the buyer make a formal con¬
tract to that effect, and it further says that
such a contract is legal and will he enforced.
The effect of this decision on the sale of ar¬
ticles which are not patented, though protected
by trade-marking the brand or by copyright¬
ing, is exceedingly interesting. The court’s
theory is that the owner of a patented article
has been given a monopoly, and he can sell all
or a part of it. If he sells a restricted right
of sale under it, the restriction may be an
agreement to resell at a certain price.
Now this, it seems to me, lets in any article
to which the seller has a legal monopoly
whether a patented monopoly or not. It lets
in Kellogg’s Toasted Corn Flakes, because
the manufacturer has an absolute monopoly in
Kellogg’s Toasted Corn Flakes. It lets in
any trade-marked or proprietary article, be¬
cause the seller of it has an absolute monopoly
in it, just as the New York Court rec'ently said
the Cream of Wheat Company had in Crearh
of Wheat — not in the article so much as in the
brand. Therefore, if the seller of a patented
article can legally bind his buyer to resell at
a fixed price, as this United States Court sayS
he can, I am unable to escape the conclusion
that any seller who, for any reason, has -a
proper monopoly in his product, can do like¬
wise. ■ '
(Copyright. October, igij.'by Elton J. Buckley.)
New York State Association.
'I'hc annual meeting of the New York State
& Western Pennsylvania Coal Merchants’ As¬
sociation will he held at Syracuse. N. Y., on
October 2,‘’d and IJ.'id. 'I'he meetings will he
held in the hall room of the hotel Onondaga.
It was originally announced that they would
he held at the Onondaga County Court House.
A very interesting preliminary notice of the
meccting has been mailed to coal dealers
throughout the state, and the program will he
announced on the 10th. In the circular an¬
nouncing the meeting the coal dealer is asked
eight questions as follows:
No. 1. — Will YOU he interested? If an
arrangement can be made to absorb the
product of the independent operators so that
both operator and dealer will be treated with
fairness, thus eliminating much of the present
disturbing element in the trade, would YOU
he interested?
No. 2. — Will YOU be interested if this or¬
ganization can furnish YOU a sound protec¬
tive insurance giving you every advantage
offered by any compensation insurance, and
at half the cost of present state or ol(i line
rates, would you be interested?
No. 3. — Will YOU be interested if a sys¬
tem for accurately determining coal costs —
costs to sell, costs of maintenance, costs of
doing business — can he worked out, giving
each dealer an exact basis for figuring your
selling price, would YOU be interested?
No. 4. — Will YOU be interested if the col¬
lection of slow accounts can be handled by
the organization at the exact cost of collec¬
tion, would YOU he interested?
No. ,5. — Will YOU be interested if a re¬
search bureau can he established, keeping you
in touch with legislation affecting dealers, and
having power to combat hills which are un¬
just, a bureau which at all times stands ready
to protect dealers’ interests from UNFAIR
treatment, would YOU he interested?
No. 6. — If collective buying of yard or office
equipment can be made practical, would YOU
be interested?
No. 7. — If the organization can have a dip¬
lomatic traveling secretary or commissioner
who will periodically visit different localities
in the interest of harmony, would YOU be
interested?
The circular continues: “We can as an or¬
ganization.” (That’s the slogan.) If we can
have a strong body working as a unit for the
betterment of conditions pertaining to retail
coal selling, we can as an organization acconi-
]dish all of these and other desired things.”
The first meeting will he held on the after¬
noon of the 22d. A session will be held that
evening and one the next morning. About
one o’clock on the 23d a dinner will he served
on the roof garden of the Onondaga, which
is enclosed and steam heated, and at this
dinner there will probably be a vaudeville en¬
tertainment. It is aimed to conclude the ses¬
sions about five p. m. on the 23d, so those
attending the meeting can return to their
homes that evening.
Hon. M. N. Clement, former excise coip-
missioner of the state of New York and noyv
general manager of the Merchants’ Mutual
Insurance Company, has, in addition to his
many other activities, agreed to act as com¬
missioner for the association. The association
has also employed Mr. James T. Ringueberg
as field secretary. Mr. Ringueberg will com¬
mence his duties in that position on October
15th. It is intended that he shall visit as soon
as possible every city or hamlet in the state
where anthracite coal is sold, get in touch
with the dealers and to aid them in every
way possible. These appointments will re¬
lieve the elected officers of the association
of duties which they have not been properly
able to perform because of their business in¬
terests.
No. 15]
Smithing Business Getting Away.
The writer recently ran across an adver¬
tisement of a flour and feed dealer in a Ken¬
tucky town, who also announced that he had
a stock of smithing coal. The town is big
enough to support a coal-yard, and probably
has one; and the moral, if there is any, is that
some coal dealers in that territory have gone
to sleep on the smithing coal deal and have
allowed a chap in an entirely different line to
take hold of it and create a business in that
line.
Of course, there is nothing to prevent any¬
body who wants to from going into the coal
business, but the natural place to look for coal
of any kind, from the standpoint of the buyer,
is in a coal-yard. When the time comes that
a consumer of smithing coal must go to a feed
store for his supply, it is evident, in the words
of our friend Hamlet, that something is rot¬
ten in Denmark. The subject of smithing
coal and its possibilities has Iteen discussed in
this department heretofore, and it might be
worth while for dealers who doubt the advis¬
ability of pushing and featuring this important
specialty to refer to those particular para¬
graphs, which may throw some light on the
proposition.
Ownership of ’Phone Numbers.
Most telephone companies publish in their
directories something to the effect that the
numbers are the property of the companies,
and that the subscriber should not advertise
them, as they are subject to change without
notice. This was probably inserted, however,
for the purpose of establishing a good “alibi”
in case a change was made and the user of the
phone attempted to claim damages for it. In
practice, the average telephone company is
anxious to take as good care of its subscribers
as possible, and taking care of business phone
users include protecting them in the use and
enjoyment of a particular number.
The coal dealer who gets most of his retail
business over the telephone is vitally inter¬
ested in having this number given as much
publicity as possible, and there is no reason
why he should be deterred from printing it
in all his advertisements, on his billheads, on
his wagons, etc. When a consumer can think
of a certain telephone number without effort
it is almost a cinch that that is the number
which will be called when he is in the mar¬
ket for the product sold by the concern in
that line. Of course, familiarity with phone
numbers is acquired chiefly by practice in call¬
ing them, but there is nothing like featuring
them in advertising also.
Incidentally, it would be a good idea to em¬
phasize the fact that the coal dealer has “plenty
of phones,” so that the consumer will realize
that the coal office can be reached without
much danger of delay.
The Combination That Counts.
Reference has been made frequently by
students of the coal business to the tact that
the use of mechanical equipment for handling
coal in the yard is a good thing. Coal deal¬
ers have also heard many times that it is
profitable to use motor trucks. But the point
has not always been properly emphasized that
it is the combination of these two general
classes of equipment that produces really the
most effective results for the coalman.
THE BLACK DIAMOND.
The yard which has elevators or loading
hoppers, by means of which the long delay
which is ordinarily suffered in filling the
wagons is eliminated almost entirely, has
taken one step in the right direction; but if it
is still using horse or mule-drawn wagons, it
is really discounting the capacity of the
business. The extent to which business can
be done with the number of teams in use has
been increased b}" the use of the loading equip¬
ment, but it is still far from the maximum.
Xow, on the other hand, a dealer who must
load his wagons by hand can hardly afford to
substitute motor trucks for them, for the time
required to fill a truck in that fashion is almost
prohibitive. The average truck is an expensive
piece of machinery, and the only way to get
returns on the investment is to keep that
machinery in motion. While the truck is in
the yard or at the point of delivery, it is doing
nothing more than could be done with a
wagon: it is in transit that it must make good,
bv means of reducing the time of delivery.
Therefore the dealer who has no advanced
means of loading his delivery equipment is
not in an advantageous position to use trucks.
He might be able to put them in and make a
better showing that if he continued to use
animal power, but it is certain that the results
would be far from brilliant, compared with the
possibilities.
The greatest opportunity lies in combining
these two classes of equipment. Mechanical
loading and unloading facilities in the yard
reduce the time of handling the coal there,
while the truck reduces the time of getting it
into the hands of the consumer. Working to¬
gether they supplement each other. Alone,
they are unable to show to the best advantage.
The dealer who has one without the other
should consider the merits of bringing these
two features into close proximity, for his
profits through the operation of each kind of
equipment will be greatly increased by the
use of the other kind.
The Trade Representatives.
When you send out a salesman or a col¬
lector or anybody else employed by your con¬
cern, do you fully realize that he is your ac¬
credited representative, your ambassador ex¬
traordinary to the court of Business? Do you
appreciate the importance which attaches to
his job, simply because of that one funda¬
mental fact, that he is speaking for you to
your customers?
Sometimes one sees salesmen and other coal
company employes out on the street talking
to customers, and the impression that they
arc making is ’way below par. Either they
lack personality, or their general appearance
is unprepossessing. In that event, the card
which they carry is of no value in raising them
in the estimation of the customer; rather, it is
the other way — the company is lowered in his
estimation.
The dealer who is looking for “cheap help”
in the form of people to do the routine work
involved in running the business is going to
get cheap help. It will be cheap in every sense
of the word. And the results will be just
about what might have been expected.
In this connection readers of 'ITie Black
Diamond may be interested in the remarks of
a dealer in women’s garments in a large city
of the middle west. This dealer, who has
285
made a great success after having been in
business for only a few years, said that he
had carried along the best members of his
selling organization, making few changes in
the staff, but training each employe as to just
how to do the work he wanted done.
“I have a force of selling stars,” he said.
"There isn’t a cheap girl in the lot. My pay¬
roll is bigger than that of any other store in
town, number of salespeople considered — but
so are my sales. Cheap help on the floor is
the biggest handicap any merchant can have.”
Of course, that’s the women’s garment business,
and the coal business is — you know, different !
How much different?
Keeping Coal Under Sheds.
Some retailers have sheds under which their
coal is stored, as a protection from the
W'eather. The cost of the sheds varies with
their size, of course, but the expense of erecting
coverage for a rather large tonnage of coal prob¬
ably would not be over $4,000 or $.5,000, on which
interest would be $20 or $25 a month. In other
words, the cost would not be prohibitive, if the
results were worth while. The biggest advantage
in having sheds is that the coal may be handled
conveniently in wet weather. Of cours?. when
the dealer’s drivers are handling it, it may not
make much difference whether they like to
have it wet or not. But how about the dealer’s
customer? If the coal gets into his bins with
the dust sticking to the lumps in the form of
mud, it is not going to look as good to him
as if it were clean and bright, and it is not
going to be as clean to handle.
Another thing, in most cities there is a fair
call for coal from farmers and others who live
in the country, and who have their own teams.
Farmers can often come to town on wet days,
when they would have work to do at home if
it were clear and dry. With a shed, a dealer
can furnish comfortable facilities for loading
the farmers’ wagons, and the latter can load
up without getting wet, and without getting
unreasonably dirty from handling wet coal.
And this advantage would probably be suf¬
ficient to determine which of two dealers
similarly situated would get the business.
Taken altogether, it looks as if there are a
number of advantages to be found in keeping
coal covered, and if sheds are the best way
to maange this, the expense should not seem
beyond reason.
Are the Drivers Hopeless?
In a good many towns, especially in the
Ohio valley and cities further south, coal de¬
livery wagons are driven almost e.xclusively
by negroes. This also applies to the handling
of trucks, where they are used. In most cases
the negroes are absolutely ignorant, many of
them being unable to read or write, and they
are compelled to rely on chance passersby for
help in interpreting the delivery tickets which
they receive from the office. These men, nat¬
urally, do not know much about the broad field
of salesmanship, and their idea of handling
their work is to get the coal into the bin and
get back to the yard just as fast as possible,
in order to get another load, as they are
usually paid so much a ton. Of course, it is
desirable that the drivers cut down the time
involved in making a delivery, but there are other
things — such as the way the coal is put in — that
are important.
Alany dealers regard their drivers as hope¬
less, as far as improving their methods are
concerned. But perhaps they have never been
appealed to along the right lines. One re¬
tailer is thinking of trying to develop “com¬
pany spirit” and espirit de corps among his
dusky helpers by furnishing them with uni¬
forms consisting of khaki one-piece overalls
and caps of the same material. The uniforms
would be emblazoned across the back with the
name of the company and its leading brand of
coal, and the caps would also help to advertise
the business. Such a plan is used successfully,
even with negroes, in other lines, and might
have possibilities in the coal trade. The driver
would at least get the suggestion that he had
to live up to his uniform, and to make it a
badge of honor by giving every customer the
best possible treatment.
.4nd it is evident that the dealer who made
a better organization out of his drivers would
have an asset instead of a liability, which his
men often are under present conditions.
286
THE BLACK DIAMOND
[October 9
Choosing the Christmas Remembrancer.
Now with the coming of the holiday season and
the usual distribution of Christmas compliments
by merchants, those retail dealers who have not
yet selected their remembrance are searching for
some novelty to distribute among their regular
and prospective customers. The man who con¬
ducts this department wants to say a vvord or two
to the retailers about the proper selection of these
novelties.
The Christmas compliment is an advertisement
pure and simple, and the coal dealer must keep
this fact before him in making his choice. He
must secure some novelty that will keep his name
and his coal before the regular and prospective
customer for a long time to come. He must
choose some novelty that will be valued by the
coal buyer ; something he will keep and not throw
away or give to some one of his friends.
Suppose we — you and I — look over the different
novelties on the market, and see which of the
types would be the more advantageous and effect¬
ive one for the dealer to use. ,
The Calendar.
tributing a good one would find ninety-live per
cent of those distributed hanging over the kitchen
range.
What is more appropriate than an article to
contain something that is used every time a fire
is made with your coal? How many times a day
does the housewife go to her match safe? How
many times during the evening does the husband
light his pipe or cigar? Just enough times to
make your name on that match safe a most pro¬
ductive advertisement and effective reminder of
your name.
I like the match safe idea.
The Whisk Broom.
How many times does the housewife or hus¬
band wish he had a whisk broom after seeing to
the fire or taking the ashes out? Of course, the
fact that a whisk broom is necessary in tending
to a fire where your coal is being burned does not
create a favorable impression, but I believe that
the average man or woman would be of a most
critical turn of mind to consider any such a con¬
nection. Yes, I think the whisk broom an excel¬
lent idea.
The Daily Reminder.
There are several daily reminders on the mar¬
ket which are designed to help the housewife to
remember those articles of which she may be in
need. Some of these reminders consist of a long
list of household needs, such as groceries, fruits,
vegetables, etc., which can be checked in some way
when needed. Coal could be advantageously added
to this list. Then there is another form which is
several sheets of memo paper, or an ordinary
piece of slate, upon which the housewife writes
her daily needs. Coal could also be brought to
her mind every time she went to the reminder.
What does the husband usually do when he
finds his supply of coal almost gone? He almost
invariably tells his wife to order some more coal.
Though he may attend to the fires, she does the
actual buying. What does the housewife do when
she sees that more coal must be bought? She
makes a mental note of the item and informs her
husband of the fact upon his return home.
Of all the forms of Christmas novelties on the
market, I much prefer the daily reminder for the
retail coal dealer. The Ad Critic.
The calendar being so appropriate and so op¬
portune has become one of the most comrnon
forms of Christmas compliments, and just be¬
cause it is so common I prefer something differ¬
ent. Wouldn’t you? , r . c
Unless the calendar is sent out at the first ot
the year it will not be kept. Consequently, all
those merchants giving away calendars distribiffe
them during the holidays, with the result that the
customer usually receives from five to ten of
them, hanging up one or two of the most attract¬
ive ones and throwing the rest away. t
Then why not an attractive calendar? Just
this: You are a coal dealer and your object in
giving away any novelty is to keep your name be¬
fore the coal buyer. Who does the most buying
in your community, the housewife or the hus¬
band? If the housewife does, then the pretty
calendar may remind her to buy coal from
whenever in need of it. But, we doubt very much
whether she will be looking at your calendar
when phoning or mailing in her order. If the
husband does the buying, then the calendar hang¬
ing in his office, workshop or barn may bring
your name to his mind when ordering coal, but
investigation will prove to you that oiit of the
two or three calendars hanging upon his walls
he does not know the name of the firm or any¬
one of them without referring to them.
No, I do not favor the calendar for the retail
coal dealer.
The Memorandum Book.
The memorandum book, because it is useful and
carried in the pocket of the recipient, is another
common form of a Christmas compliment, and
like the calendar, because of its commonness, we
would prefer to get away from the customary
Your experience in the retail coal business has
taught you that the woman does a large perce^nt-
age of the coal buying, but what need would a
woman have for a memorandum book? Thus in
giving away memorandum books you may keep
your name before the men, but you are overlook-
ing probably your biggest coal buyer the house¬
wife. . , . ui
No, the memorandum book does not meet witli
my approval.
The Pocket Book.
The jiocket book, because of the assumption
that every time the owner buys anything he opens
his purse, has become another of the usual forms
of Christmas compliments. But like the calen¬
dar and memorandum book it is too common, and
like the memorandum book it does not appeal to
the housewife.
Pencils.
I believe pencils impossible as Christmas com¬
pliments because of their short life, and because
of the tendency to create a wrong impression
because of their cheapness.
There are many other novelties on the market
such as paper weights, pocket mirrors, letter open¬
ers, small combs, etc., which would not do at all
because they are not valued by the type of man
or woman who does the coal buying.
We have spent quite a little time in discussing
those novelties which do not seem satisfactory
ones for the retail dealer, now let us look at
those which might be more effectively used.
The Kitchen Match Safe.
Unless kitchen match safes have already been
distributed in your community by some merchant,
we would be willing to wager that the dealer dis¬
A New Rescreener at Rend City, Ill.
Coal operators getting a large percentage of
small coal under present mining methods have
found it necessary to install rescreening plants
which will enable them to secure better prices for
their fine coal. One of the most modern types of
rescreening plants was found recently by the
writer at the No. 2 Mine of W. P. Rend Coal &
Coke Company, located at Rend City, Ill.
The plant is designed for making four sizes of
coal as follows: No. 1 nut, or 3x2 inches; No. 2
nut, or 2xll4 inches; No. 3 nut, or inches;
No. 4 and No. 5 nut, or >>ich and under.
The coal is taken from the main screens and
carried by gravity into the boot of a large con¬
tinuous discharge elevator located immediately
over the nut track. This elevator is fully enclosed
and vertical, elevates the coal into a bifurcated
chute, and delivers it as may be desired to either
or both of the Targe rotary screens.
The elevator buckets are 24x18x42 inches. The
screens are six feet in diameter, and twenty-four
feet long, and are jacketed for about three-fourths
of their length.
The screens are located in the head house of
the rescreener and are cut off by a corrugated
iron partition from the picking shed, which ex¬
tends over the bins. From the rotary screens the
No. 1 nut is carried directly onto two rubber pick¬
ing belts, which move at a slow speed and carry
the coal into the No. 1 bin. The coal is thor¬
oughly cleaned on these belts and is lowered,
with a minimum amount of breakage, into the bin
by means of a Humphrey ladder with steel frame
and wooden treads.
The No. 2 coal is delivered onto a short belt
beneath the floor and taken directly to the No. 2
bin. No. 3 coal is delivered to No. 3 bin through
a gravity chute.
No. 4 and No. 5 are stored immediately under
the screens and the walls of the bin are built up
so as to afford considerable additional storage
capacity. The plant is operated by independent
motors of the enclosed ventilated type. One motor
operates the elevator and another motor the
screens, picking tables and belts. The bins are of
the well known circular type with conical bottoms.
The bins for the Nos. 1, 2 and 3 coal will hold
about 150 tons of coal, and bin for No. 4 and
No. 5 coal will hold about 220 tons.
The arrangements for loading the coal are
complete in every respect. The coal is drawn out
of the bins by means of slide gates and in the
case of No. 1, No. 2 and No. 3 the coal is passed
over lip screens of appropriate size, and the under¬
size and degradation removed by separate screen
conveyors operated by 1 H. P. motors.
The degradation is carried by means of a flight
conveyor to the elevator boot, and this conveyor is
also arranged so that it can take coal from any
of the bins, in addition to the degradation, and
deliver it to the boiler house conveyor, which
crosses it at right angles next to the elevator
boot.
The floors in the rescreener are of concrete.
The entire structure is steel and corrugated iron.
The plant, which was designed and constructed
by the Allen & Garcia Company, Chicago, has
been in operation only a few months, but has
already made an excellent reputation for its
product.
The new rescreening plant built for the Rend Coal & Coke Company.
No. 15]
THE BLACK DIAMOND
287
Outline Plan of the Manitowoc Land & Fuel Company’s Plant.
Anthracite Plant of the Manitowoc Land & F uel Co.
The Manitowoc Land & Fuel Company at
Manitowoc, Wis., has recently completed a steel
storage building for anthracite coal, with a ca¬
pacity of 20,000 tons.
The wooden building that was already on the
property has a capacity of 10,000 tons. The
screen house was enlarged, and the screening
capacity increased last fall so that now the com¬
pany can rescreen and load out for retail and car
business at the rate of 600 tons a day.
With 30,000 tons covered storage, a modern
screening plant, and good loading accommodations,
the company is in first class shape to take care
of its customers promptly and satisfactorily.
The coal is unloaded from the boats by means
of three unloading rigs and is distributed in the
old building in cars moved by hand. These same
rigs unload the coal for the new building. There
is a thirty inch belt conveyor running over the
car platform in the old building at a height of
thirty feet from the ground, up an incline to a
height of fifty feet in the new building and then
horizontally, discharging the coal through a mov¬
able tripper at any desired point.
For reclaiming or picking up the coal from the
new storage there is a twenty-four inch belt con¬
veyor running in a wooden tunnel lengthwise of
the building, discharging into a Harrison conveyor
in the' old building and thence up into the screen
house to be resized by a revolving screen before
being sold.
The new building, the trusses of which com¬
pletely span the coal pile with no posts or other
obstructions in the coal, is considered the best
type of construction for an anthracite storage
plant. The roof is on a slope of approximately
twenty-seven deegrees, which is the angle of
repose of the prepared sizes of anthracite, so that
the coal fills the building as it flows from the
tripper with no trimming required.
After the natural run off, for handling the coal
to the belt conveyor in the tunnel, a scraping out¬
fit is used. The motor and scraper drums are
on a platform suspended from the trusses over
the coal pile in the center of the building.
In getting up the preliminary plans and esti¬
mates for this new plant various types of con¬
struction and machinery were considered. It was
rather interesting as well as surprising to find
that a flat shed, all wood construction, with an
elevated cable car system for distributing the
coal, would have been very little cheaper than the
plan adopted.
A cost of $1.50 to $2 a ton for a complete
plant of this kind is considered good, and the
cost of this new storage of the Manitowoc Land
& Fuel Company is well within the latter figure,
with a first class job in every respect.
The contracts were let on a competitive basis.
The Lackawanna Bridge Company of Buffalo, the
Link-Belt Company of Chicago, and Wales-Camp-
bell Company of Minneapolis furnishing and
erecting the building, machinery and lumber work
respectively.
Death of Captain Menges.
Cincinnati, Ohio, October 7. — {Special Corre¬
spondence.) — The report of the death of Captain
Charles J. Menges, one of the ablest and best
known river men in this section of the United
States, came as a terrible shock to the coal men
of the city and especially to members of the Cin¬
cinnati Coal Exchange, of which he was a mem¬
ber.
Captain Menges was harbormaster for years in
this city for the Monongahela River Consolidated
Coal & Coke Company, and later general manager
of transportation, and was well known and well
liked by a large circle of business men outside the
river and coal and coke business. He had a fine
home in Kentucky, just across the river from Cin¬
cinnati. He was a member of the Chamber of
Commerce and also held affiliation with several
secret orders. His ability in the management of
river boats and men was such that when the Euro¬
pean war broke out and it became apparent that
there would be a big export demand and the New
Orleans properties of the company would come
into large use, the Pittsburgh company decided to
send Captain Menges to New Orleans to straight¬
en out their affairs in that port and get everything
in shipshape position to take care of any demand.
If Captain Menges should like the position, he
would have a permanent place there, but if he
should not, he was to return to his home in Cin¬
cinnati.
When the big storm came which devastated
Galveston, Captain Menges was in Cincinnati. Big
shipping had been borne inward onto land and
other vessels, including the government transport
McClellan, went to the bottom. But one man in
the country was known who could restore the
shipping and raise the transport. Captain Mengea
was called to the task and the raising of the
transport occupied fifty-eight hours, a record
achievement, and the vessels were brought from
inland and restored to the waters in a very short
space of time.
Captain Menges had just returned to New
Orleans where it was fated that he should en¬
counter another storm, more violent than that
which had devastated Galveston.
The pathetic part of the story, aside from
his death, was that he had accomplished all that
had been' asked of him and that, for reasons of
his own, he desired to return to Cincinnati, and
his return was planned for Sunday, October 2d,
four days after his untimely taking away. For
several days confirmation of the report of his
death was anxiously awaited by his family and
friends in Cincinnati, hope remaining that per¬
haps he had escaped, somehow. Hope has been
abandoned and this week notice of his death
was posted in the Chamber of Commerce and
the company he served offered a reward of $50
for the recovery of the body.
The Coal Exchange took action this week on
the death, and President E. J. Howe appointed a
committee consisting of Thomas H. Richardson,
chairman, and Joe Tuohy and Etavid T. Evans.
The committee drafted resolutions which will be
sent to the family and also placed on the records
of the Exchange. The resolutions follow :
“It is indeed a sad duty allotted us to spread
upon the minutes of the Cincinnati Coal Ex-
chan.ge, affiliated with the Cincinnati Chamber
of Commerce, the untimely death of one of our
Directors and foremost Members, Charles J.
Menges.
“Since the formation of the Coal Exchange,
Charles J. Menges had been a most active and
earnest worker in the promotion and welfare
of our association. It was ever a pleasure to
meet with him in the executive capacity he oc¬
cupied with us, as his counsel and judgment were
always sane and sound, and we will miss him
from our midst more than we can express. Ever
genial of disposition, he surrounded himself in
life with friends, in whose hearts, he instilled
affection and admiration that will last, eternally.
“It is, however, a source of consolation to his
many friends to feel that they enjoyed the friend¬
ship of such a man while he lived, and when he
was called it was in the heroic discharge of his
duties. He never knew what it was to shrink
from duty, no matter how perilous its nature,
and it was amidst these surroundin.gs, that he
gave up his life.
“We, the members of this committee, and the
Cincinnati Coal Exchange, extend to his family
our heartfelt sympathy in this great bereavement.
“‘Long lin.ger the memory of him, friend of
our better days,
‘None knew him but to love him. none loved him
but to praise.’ ”
View of Dock Showing Old Wooden Structure and New Building Completed.
288
[October 9
THE BLACK DIAMOND.
New York Golf Tournament.
The New York Coal Trade Golf Association
has sent out announcement to its members of
the dates of the fall tournament, viz.: October
Kith and 17th. The place of the meeting is
the Seaview Golf Club at Absecon, N. J., about
fen miles this side of Atlantic City.
The way by motor is across Staten Island
ferry to Perth Amboy, then to West Key-
port, thence through Freeport, Lakewood and
Toms River to Absecon, approximately 110
miles from New York.
Those going by rail are requested to take
the Pennsylvania Railroad to Absecon, where
a club bus will meet the train on request to
the committee.
The rates at the Seaview Golf Club will be
.$:! and $:{ a day for single rooms: meals will
be a-la-carte. Suitable accommodations may
be had at the Seaview club house for mem¬
bers’ families.
The. events wdll be as follows: Saturday
morning, 18-hole qualifying round medal play,
handicap for medal. Contestants will be di¬
vided into flights of eight based on gross
score.
Saturday afternoon — First round match
play. Contestants will be given three-quarters
of the difference of their handicaps.
Sunday morning — Second round match play.
. Sunday afternoon — Final round match play.
.\lso 18-hole handicap any time Sunday for
all but finalists.
New Coal Carrying Boats.
A newspaper special from Bangor, ^le., to the
Boston Transcript is of interest to the shipping
companies and especially to the coal trade who
are interested in colliers. This dispatch reads:
“Just as shipowners had made up their minds
that the new heavy-carrying, self-trimming steam
colliers, that Atlantic coast yards have been turn¬
ing out during the last few years, were the last
word in cargo-carrying, and that this type of
vessel would dominate the coastwise trade, word
comes that the shipbuilders of the Great Lakes
have devised a craft that will have distinct advan¬
tages over both the modern steamer and the big
schooner which the steamer is rapidly displacing.
“This lake type, of which Atlantic coast inter¬
ests have ordered a considerable number, is a
steel-built five-masted schooner with a full
spread of sail and also a powerful engine of the
Swedish crude oil pattern, so that she will be
able to make fair speed in almost any sort of
weather and also save towage bills, which latter
item amounts to thousands of dollars yearly for
high vessels. These auxiliary five-masters will
be of about 3,000 tons, fit for off-shore as well
as coastwise business, and are figured to be the
most economical craft yet devised for general
freighting.
“When the boom in off-shore freights occa¬
sioned by the war is over, and the big schooners
get back to the coast again, they will meet their
new rivals. There can be but one result of the
contest between sail and science — the disappear¬
ance of the overgrown sailing schooner, or, as
the old salts call them, ships in disguise. That
this is the expectation of shipowners is indicat¬
ed by the fact that only three schooners are now
in process of construction in Maine, none of
them large, and that there are few, if any, orders
in sight for sailing cargo carriers of any size
or rig.”
Communications.
Editor The Black Diamond:
Your editorial, “A Charge to Keep,” in to¬
day’s issue of The Black Diamond is indeed
refreshing in that it points in a direction hith¬
erto unnoticed by the conservative trade press.
Passing by the ac'ademic question as to
whether an individual in the short span of a
lifetime can accumulate a million dollars hon¬
estly, it is well to be reminded that any aggre¬
gation of capital in single hands cannot very
much longer be regarded as absolute posses¬
sion. Even the law forbids the owner of
money to destroy it. Recognizing thereby the
principle that the possession of wealthy by the
individual is rather a trusteeship which has
gravitated to the possessor through natural
selection.
It appears then that society is beginnmg to
recognize these laws and will not permit the
legal owner to waste the wealth selfishly for
his individual gain or pleasure. Therefore, the
thought suggested in the editorial is a gentle
reminder that all human activity is inter-re-
I'ated and that the individual, of necessity, is
compelled to be interested in society just as
much as society is interested in the welfare of
the individual. Yours truly,
L. Romanski,
President of the Atlas Coal & Coke Company,
Old Colony building, Chicago.
Chas. Horning Dead.
Charles Horning, Jr., one of the pioneer sales¬
men in the New York anthracite trade, and up
to the time of his death connected with the Sus-
(luehanna Coal Company, of No. 1 Broadway,
died at his home. No. 3 Cjlenada place, Brooklyn,
on Sunday, at the age of fifty-one. Mr. Horning
had been in poor health for about six months,
and had been absent from his office for at least
four months. Recently he was so much improved
that he was able to make one or two trips to
No. 1 Broadway, and it was hoped by his many
friends that his improvement was permanent.
When quite a boy, Mr. Horning entered the
coal firm of W. M. Davidson & Co., at No. Ill
Broadway. Some years later he left this com¬
pany to go with Percy Heilner & Son, leaving
the Heilner firm in 189:3 to go with Stickney &
Conyngham, who at that time were selling the
anthracite coal from the Pennsylvania Railroad’s
mines. In 190-1 when the Susquehanna Coal
Company was formed, it took over the Stickney
& Conyngham coals, and Mr. Hornin.g continued
his connection with the new company. In 1908
he was appointed office manager of the Susque¬
hanna, which position he filled until ill-health
made it necessary for him to retire from active
business.
The funeral services were held on Tuesday
evening at his late home in Brooklyn, being at¬
tended by many of his close associates in the
coal trade.
Peace in Colorado.
Denver, October 7th. — (Special Correspond¬
ence.) — Since the acceptance Alonday by the di¬
rectors of the Colorado Fuel & Iron Company of
the Rockefeller industrial plan and its probable
adoption by the company’s miners through a ref¬
erendum vote, the all-absorbing topic of discus¬
sion is the probable action of the governor in
ordering the dismissal of almost 400 criminal
cases against the former coal mine strikers.
Governor Carlson has made no official announce¬
ment, but he is expected to do so soon.
Developments of the last two weeks have
pointed to the possibility of such action. At that
time it was known that the United Mine Work¬
ers were considering the advisability of seeking
the indictment of state officials and coal company
officers with the avowed intention of using them
to secure the dismissal of certain cases against
union officers and members. It is believed that
if the governor decides to yield to the demand of
prominent citizens, his action will result in quash-
in.g of all indictments, the dismissal of all pend¬
ing cases and probable pardon of the five men
already convicted, including John Lawson.
It is believed that permanent peace can not be
expected unless the state’s industrial slate is
wiped clean, and that now is the opportune time
for such action.
Bermudan Coal Trade.
Carl R. Loop, -American consul at Hamilton,
Bermuda, writes The Bl.\ck Diamond under
date of September 33.
“The most obvious effect of the war has been
the increase of freight rates and consequently
increased prices of coal. The consumption of
coal has not decreased, but on the contrary, has
increased slightly over that consumed in 1913,
as may be seen by reference to the table of im¬
ports set out below.”
Mr. Loop goes on to state that .general busi¬
ness conditions in Bermuda are more favorable
than during the early part of last year. The
dock authorities and the British .\dmiralty have
spent more money in Bermuda than has hitherto
been the case. The tourist trade fell off con¬
siderably during the last season, but for the past
few months has been almost normal. What the
prospects are for a good winter tourist trade
depends upon the steamship facilities. The pres¬
ent accommodation is certainly not sufficient for
a normal tourist season, and the colony is now
negotiating with steamship companies with a view
of securin.g more adequate service during the
winter months.
American coal has been imported since the
outbreak of the war, when the government took
over all the Welsh coals in Bermuda. The pre¬
dominant .American coal consumed is Pocahontas,
and a small quantity of anthracite is imported
every year and sold for use in homes and to
the Bermuda Electric Light, Power and Traction
Company. When war was declared, Pocahontas
coal was landed in Bermuda at $5 per ton ; this
price increasing in varying amounts until now it
stands at from $(3.50 to $6.75 per ton. During
I'ebruary the price reached as high as $7.25 and
$7.50. These fi.gures were due almost entirel}’
to the increase in freight rates and the difficult\’
in obtaining transportation. It is estimated that
about seventy-five per cent of the coal imported
into Bermuda is sold to ships. In normal times
the price of coal delivered on board ship is about
$8.40, but during the past winter the price was
increased to as much as $11.38 per ton. Now it
stands at about $10.08 per ton.
Importations for the years 19i:! and 1914 were
as follows :
1913 1914 .
Countries. Gross tons. Value. Gross tons. Value.
United States . . 11,951 . $44,991 12,16:1 $40,499
United Kingdom 33 190 1,000 6,886
Trade News.
Mr. W. E. Hardy has recently been appointed
sales manager of the Boston Belting Company,
Boston, Mass. Mr. Hardy was formerly con¬
nected with the Diamond Rubber Company and
the B. F. Goodrich Company.
• The Kenova Mine Car Company, Huntington,
W. Va., has recently been incorporated with a
capital of $100,000, all of which will be paid in
as needed. Officers of the company are C. K.
Myers, president and general manager; T. F.
Bailey, Jr., vice-president, and W. T. Green, sec¬
retary and treasurer.
The company is now occupying the plant for¬
merly owned by the Independent Steel Company,
which covers nine acres of ground, with side
tracks from the B. & O., C. & O. and N. & W.
railways on the property. They expect to com¬
mence operation about October 15.
The Golden-.Nnderson Valve Specialty Com¬
pany, Pittsburgh, Pa., are distributing blue prints
describing their new Automatic Double Cushioned
Type “B” Non-Return Valve. This valve is per¬
fectly cushioned in both the opening and closing
to prevent hammering or shattering, and is sim¬
ple in design. Further particulars will be fur¬
nished any reader of this paper upon request to
the above company.
The Gardner Governor Company, Quincy, Ill.,
are distributing circulars and catalogues describ¬
ing this company’s air lift pumps, steam sep¬
arators, air compressors and vacuum pumps and
governors. This literature will be sent any
reader of The Black Diamond upon application
to this company.
A “Safety First” manual has just been issued
by the Colonial Supply Company, Pittsburgh, Pa.,
describing this company’s “first aid” equipment,
safety lamps, fire prevention apparatus, warning
signs, meters, recorders and other mine supplies.
Every mine operator should send for a copy of
this manual unless he has already received one.
Coal Land Transfer.
Denver, October 7th. — (Special Correspond¬
ence.) — Deeds were recorded at Steamboat Sprin.gs
this week for the transfer of 480 acres of un¬
developed coal land two miles northwest of the
Harris mine, for a consideration of $48,000. The
land is located near the Moffat railroad, and ad¬
joins the property recently sold by John F. Cam¬
pion- of Leadville to the International Fuel Com¬
pany, which is now opening a large mine on it.
Wolf Campion is the purchaser and it is said
that it is his intention to further add to his coal
land investments in Routt county. The coal
produced in that section is of an almost unsur¬
passed quality.
Hampton Roads Exports.
During September railroads terminating at
Hampton Roads dumped bituminous coal as
follows: Norfolk & Western, at Lamberts
Point, 723,670 tons. Chesapeake & Ohio, at
Newport News, 373,880 tons. Virginian Rail¬
way, at Sewalls Point, 311,674 tons. This
makes a total of 1,408,194 tons for the month.
Of this amount approximately 582,943 tons
went into export.
No. 15]
THE BLACK DIAMOND
289
Rockefeller’s Social Plan.
(Concluded from page 281.)
New York shouting, ‘If you see John D.
Rockefeller, Jr., shoot him down like a dog.’ ”
Following a preliminary statement by J. F.
Wclborn, president of the Colorado Fuel &
Iron Company, who expressed the hope that
there never will be a recurrence of tlje re¬
cent .“disturbance,” Mr. Rockefeller pid:
“This is a red letter day in my life. For
the first time in my life I have been given
the opportunity to meet face to face the rep¬
resentatives of workers employed by the com¬
pany.,
“i shall remember this day until my dying
day. I have met the men working in the
mines, have met your families. I have gone
into your homes and talked to your wives. 1
have tried to see for myself everything there
is to see in this camp that would aid us to
a better understanding of the whole situation.
“We meet here today as friends to discuss
our common interests. It is by your courtesy
that I am here. I am neither a representa¬
tive of the employes nor an officer of . this
splendid company, but I represent the stock¬
holders — the men who furnish the money to
make the things go.
“There are four things that constitute a
company or corporation. They are:
“First, the stockholders. They furnish the
capital with which the enterprise may be
carried on. They also name the directors.
“Second, the directors. Their duty is to
see that the chief officers are carefully and
wisel}' selected to plan out the larger policies
and play the financial side.
“Third, the officers, who supervise the cur¬
rent operations on the ground.
“Fourth, the employes, who contribute their
skill to the advancement of the common in¬
terests. And no one interest of the four can
be advanced to the sacrifice of the other
three without destroying the whole structure.
“When any one of these four selfishly con¬
sider their own interests alone, sooner or later
disaster will follow.”
He then placed a small table before him.
This table was supposed to be square and
level and supported by four legs of equal im¬
portance. With this he illustrated his views
on the relation of capital to labor, and labor to
capital. He also took a handful of small
coins from his pocket and placed them on
the table.
“You will observe, men,” he continued,
“this table is square. Every corporation, to
to be successful, must be on the square. You
also will notice the table is level, being equally
supported by each of the four legs — the stock¬
holders, directors, officers and employes.
“No corporation ought to succeed that is
not on the level and if all four of the interests
are on the level then we begin to pile up
earnings.”
And he rattled the coins on the little table.
Wages the First Dividend.
“Now,” he went on, “who has the first
crack at the earnings? The employes, of
course. You come ahead of all others. You
take out of this pile what belongs to you
first, and I want to impress this upon you — ■
that there has never been a two weeks since
my father and I have been connected with
this company that you have not received your
wages.
“After you, the officers are given their share
of the earnings, then the directors get their
fees, and lastly come the stockholders. You
see the men who furnish the capital are the
last to be counted in when the profits are
divided up.”
Fie had skillfully manipulated the little ta¬
ble so that by the time he had paid off the
directors there was nothing left for the
stockholders. The top of the table was bare.
“Why, he exclaimed,” “there is nothing left
in this corporation for the stockholders. This
must be the Colorado Fuel & Iron Company.
“Men, in all the fourteen years that father
and I have been connected with this corpora¬
tion, it has not paid one cent on the common
stock investment. Our common stock has not
had one cent of return.
“Now, you men have not been told that,
have you? You have not been used to hear¬
ing that side of the case, have you? No.
As many of you who have heard that raise
your hands.”
About six out the thirty held up their
hands.
“Not many, for sure,” he observed.
‘‘What you have been told,” he continued,
“is that th.e Rockefellers are the biggest
scoundrels who ever lived, that they have
been sweeping into their strong boxes mil¬
lions m earnings from the Colorado Fuel &
Iron Company, while they have been oppres¬
sing you.
"All over this country from ocean to ocean,
it has been heralded that we have been mak¬
ing great profits while trying to grind you
down. That’s the kind of dope they have
been giving you. They spread this talk so
widely that men marched by my office in New
York and shouted: ‘If you see John D. Rocke¬
feller, Jr., shoot him down like a dog.’
“And all this time, in all these fourteen
years, the Rockefellers have not received a
cent of income on the $34,000,000 of com¬
mon stock. Put that in your pipe and smoke
it, men.”
The Rockefeller Trip.
Perhaps nothing that has occurred recently
in America has caused or will cause as much
discussion as this act of Mr. Rockefeller. In
the first place, the mere fact that he went
to Colorado aroused criticism. On that score,
there is this to be said.
The west is the one place remaining in
effete and flabby America where physical and
moral courage is appreciated. In fact, the men
there have no respect for anything else. The
western man has not much use for a man
who fights from ambush; perhaps they had
a trifle too much of that from the Indians.
More than likely the bitterness during and
after the fighting around Ludlow, nearly two
years ago, can be traced to the fact that the
western men could not stomach the fighting
method of the imported miners who hid be¬
hind women during the battle and mutilated
dead bodies of the wounded afterwards.
Seeing the temper of the western people and
the fact that western public opinion had to
be won. the physical bravery of Mr. Rocke¬
feller in going into the mining districts after
his life had been threatened was the best
thine possible for his cause. Indeed, men
familiar with the western mining conditions
sav that lack of intimate contact between the
officers of the company and the working force
was one real cause of the labor difficulty. It
is too late to talk about such things now, but
the notion does emphasize the fact that Mr.
Rockefeller did the right thing when he went
into the mining camp.
As to whether he did the right thing when
he put out the “plan” is open to dispute. He
had said many times that he was represented
in Colorado by men who were perfectly capa¬
ble of handling the situation and that he did
not propose to go over their heads. His
later statement says that the stockholders are.
in effect, subordinate first to the directors and
second to the officers of the company. At
the opening of last Saturday’s meeting he
said that he represented the stockholders only.
It would have been in keeping with his
previous stand, therefore, if the plan for bet¬
terment of local conditions had originated
with the officers of the company, and had
been supported by the directors and the stock¬
holders. Air. Rockefeller could have origi¬
nated the idea just the same. Also, he could
have used a better way than he did of put¬
ting it out.
It was clearly a tactical mistake to reverse
this process, and for the principal stockholder
to outline a plan in a public meeting, which
the directors and officers had to adopt whether
they liked it or not. The mistake was not
in the fact that the major stockholder out¬
lined the plan: he is in control and may do as
he pleases. It was in the fact that he sub¬
stituted himself for his officers, who were un¬
der fire, and that he presided over the meet¬
ing, which in a sense reversed them.
This grave mistake in tactics is no doubt
traceable to a man by the name of C. J. Hicks.
He is something of a welfare worker, who
was loaned to the Rockefellers by the In¬
ternational Harvester Company. Mr. Hicks
is apparently the man who conceived Air.
Rockefeller’s plan.
Mr. Rockefeller, carried away by enthusiasm
of a plan which seems so fair, has probably
embarrassed his officers and directors for all
time by giving his approval of Air. Hicks’
idea in the way he did. He gave the people
of Colorado the impression that those officers
are mere figureheads and that Mr. Rockefeller
after all. is the dominating force, even in
matters of detail. Such a situation — even
though a blunder of a well-meaning faddist-
gives point to the accusations of Frank Walsh
and others that Rockefeller, after all, is the
man responsible for t^e Colorado war.
We wish to be understood in this matter.
There is nothing but good in the plan itself!
It is a perfectly splendid • idea, and is ' all
riglit. The plan does not, as it may seem,
acknowledge the accusations of any of the
enemies of the Company. It does not acknowl¬
edge that the hopelessly selfish plan of the
mine workers union h;^d any merit in it. It
doesn’t give, even anything, which Colorado
mines didn’t have, before. No one can quarrel
with the plan.
But with the manner -.of putting out that
new plan, no one except Mr. Rockefeller’s
enemies can a.gree. It was the manner of
announcing it that to the mind of the un¬
thinking will give the impression that the
miners won, and that Air. Rockefeller, in per¬
son after an inspection, confesses that he has
been wrong all along.
The grave danger is that the mere manner
of putting the new plan into effect will teach
the miners that they can go over the heads of
even the presidents of the Rockefeller com¬
panies. directly back to Mr. Rockefeller in
New York.
While the plan, therefore, may be quite sat¬
isfactory in every particular, the manner of
putting it out was, in a sense, unfortunate.
Rates on Coal to River Points.
The possibilities of the Warrior river coal
trade were further emphasized recently, when the
state public utilities commission, sitting in Tusca¬
loosa, .granted the Frisco Railroad the right to
establish a proportionate rate of eighteen cents
on coal from points along its line to points on
the river. The order is to go in effect in ten
days.
The application for this rate on the part of
the road means that it has taken cognizance of
the importance of the river traffic and intends
to cooperate with the mines along its route in
furthering the business. A tipple is already be¬
ing built at Cordova for handling the river busi¬
ness of Walker county mines. These and nu¬
merous other collieries in a position to cater
to the river trade, are on the Frisco system,
and the road would earn a considerable revenue
in handling the coal from mine to river.
It is deemed probable that other railroads ply¬
ing in the same territory will join the Frisco
in putting on the lower rates.
The railroads operating from Alabama coal
mines to New Orleans are “up in the air”
as to the increase in the freight rate on coal
from $1.25 to $1.40, and although October 1st
(Friday) was originally scheduled as the day
for the new rates to go into effect, tariffs con¬
taining the advanced rates have not been is¬
sued. And according to local industrial men,
the railroads are not likely to issue the new
tariffs.
Two of the largest plants at New Orleans that
consume coal, anticipating the higher rail rate
on coal, contracted for several years’ supply of
crude oil for fuel in place of coal.
Facing this heavy loss in coal traffic, and
much heavier prospective losses, together with
the inevitable loss of rail-hauled bunker coal
traffic from Alabama mines to New Orleans,
the railroads are uncertain what to do, and the
rates were not placed in effect October 1st, as
was originally planned and so announced.
Alabama mines now get a proportion of the
huge bunker coal business at New Orleans. With
the opening up of the Warrior river to Birming¬
ham, Alabama was enabled to ship bunker coal
to New Orleans in even greater volume. Alost
of the bunker coal at New Orleans, however,
comes from Pittsburgh by river.
What bunker coal traffic is handled into New
Orleans from Alabama by the railroads would
be lost if the rate were raised fifteen cents a
ton. The commission’s order, granting the in¬
crease, stated specifically that the railroads could
not discriminate as between bunker and land
delivery coal, and if the rate were raised on
land delivery coal it would also have to be raised
on bunker coal.
When the commission granted the increase,
two of the largest coal consuming plants at
New Orleans immediately entered into long¬
term contracts for a supply of crude oil for
fuel. The firing system at the |)lants was changed.
Local industrial men feel certain that the rail¬
roads will not raise the rate.
290
THE BLACK DIAMOND
[October 9
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Saturday, October 9, 1915.
INDEX.
Special Articles.
Page
Rockefeller’s Social Plans for Colorado Mines . 281
American Mining Congress Plans on Exposition.... 282
A City Without Hope . 283
Eastern' Ohio Operators Want Lower Rates . 284
The Latest Chapter in Price Fixing Litigation . 284
New York State Association . 284
Field of the Retail Dealer . 285
Choosing the Christmas Remembrancer . 286
A New Rescreener at Rend City, III . 286
Anthracite Plant of Manitowoc Land & Fuel Co.... 287
Death of Captain Menges . 287
New York Golf Tournament . 288
New Coal Carrying Boats . 288
Communications . 283
Charles Horning Dead . 288
Trade News . 288
Rates on Coal to River Points . 289
Editorial . 290
News Local to Chicago . 292
Small Activities in Many Coal Centers . 292
Facts Which Determine Our Export Prospects . 293
Market Reports.
General Review and Chicago . 294
Pittsburgh, Indianapolis and Omaha . 295
Cincinnati, Cleveland and Twin Cities... . 296
St. Louis, Detroit, Louisville and Birmingham . 297
New York . 298
Philadelphia and Baltimore . 299
New England, Buffalo, Denver and Duluth . 300
Hocking Valley . 15
John D. Rockefeller, Jr.
John D. Rockefeller, Jr., is an interest¬
ing young man, made so, first, by the fact
that he inherits his father’s great wealth,
and second, by the fact that he is proving
that the mere possession of money can
be no substitute for experience.
The recent visit of the young man to
Colorado is a case in point. Some months
ago Mr. Rockefeller said in effect:
“We have such large amounts of money
invested, we must naturally place it in
many industries at many places. We can¬
not know all about everything in detail ;
in fact, money alone is not concerned with
the details of management. All we in
New York can do is to look out for the
larger policies. We must leave to the
men at the mines the carrying out of our
plans.
“In Colorado we are well and ably rep¬
resented by skilled men. They must
manage the mining properties and answer
to us by their results. We in New York
cannot interfere with their acts unless we
want to substitute ourselves for them and
become responsible for the success or fail¬
ure of their plans.”
That boiled down, in substance, is what
Mr. Rockefeller said in his various state¬
ments. It was in fact, the only stand
which mere money can take. But having
done his plain duty, Mr. Rockefeller went
on a trip of inspection to his Colorado
mines. Before he went, his representa¬
tives had been all powerful. When che
dispute arose these vigorous managers
said to the miners in substance :
“Only three issues are involved in this
labor dispute. One is: ‘Has the law
been obeyed?’ We have not been elected
by the state to enforce the law. But we
have done more than the law demands or
ever will demand. If there is any criticism
of our acts we cannot condemn and pun¬
ish ourselves ; the state officials must do
that. They have not acted against us, so
we assume that no charge against us
exists.
“The second issue is: ‘Are we paying
our men a fair wage?’ We have studied
the average wage of Colorado. We find
that, we are paying more than any one in
the state, and, therefore, cannot pay still
more now.
“The third issue is: ‘Shall we continue
to manage the properties, or shall we turn
the management over to the United Mine
Workers of America.’ Our contention is
that a great many people have invested a
great deal of money in these Colorado
coal mines. They have selected us to
manage the properties. They have not
empowered us to relinquish that manage¬
ment. The union officials have failed to
show us any authority from the stock¬
holders for the transfer of control which
they propose. They do not try to prove
that their management would be in the in¬
terest to the stockholders ; rather, they
clearly indicate that it would be of inter¬
est only to the miners’ union. Therefore,
we must resist that claim.”
This was a logical conclusion for the
managers. It is inconceivable that they
should take any other.
Mr. Rockefeller’s statement of last Sat¬
urday, taken in conjunction with what the
managers previously had said and what
Mr. Rockefeller had said, made the man¬
ager appear in an embarrassing position to
say the least.
If this thing had been done properly,
the only new program in the Colorado
coal mines would have been mapped out
by the managers. If the program was to
be changed, they were the ones to change
it.
In doing otherwise the youth and inex¬
perience of Mr. Rockefeller, Jr., displayed
itself. He went into Colorado on a spec¬
tacular trip. This he had a perfect right
to do; in fact, it was all right. He carried
along with him a theoretical fellow who
is interested in welfare work. This also
he had a perfect right to do. Having
looked over the whole situation, Mr.
Rockefeller’s companion had a great idea.
We suspect he had it all mapped out
ahead of time. This idea was a complete
scheme by which the relations between
the miners and the company should be
regulated in future. Incidentally it was a
good plan, x'klso Mr. Rockefeller thought
it was good because he adopted it on the
spot.
Acting under an impulse, evidently, a
meeting was called. On one side sat the
officers of the company; on the other side
sat the miners. Mr. Rockefeller, the prin¬
cipal stockholder, outlined the plan which
had been given him by his companion.
The officers accepted it because there was
nothing else to do. It was advantageous
to them and, naturally, the miners ac¬
cepted it.
By that simple act Mr. Rockefeller did
two things which must end in mischief :
First, he stripped the officers of the
mining company of their authority and
incidentally reversed himself completely
on the position he had taken when, in
New York, he passed on the same matter.
When he gave out that plan, he no longer
represented mere money, but instead in¬
serted himself into the detailed manage¬
ment of the mine. That act was a blun¬
der. We can call it nothing else.
Second, Mr. Rockefeller made a decision
for his own companies which must em¬
barrass the managers of all other proper¬
ties in that field. In other words, he set
an extragavant pace for them. This is a
thing which any man with money would
hesitate to do especially when he had said
that the common stock of his own com¬
pany had never paid a dollar in dividends.
What he did was, in effect, to deprive
other stockholders of a hope of getting a
dividend.
Everyone believes that Mr. Rockefeller
is a sincere young man. His record
throughout has been that of one who
wants to do the right thing. At the same
time his recent act discloses him as a man
of no experience and far from being skilled
in the practical workings of business.
When he has lived a little longer he will
have had more experience. Then, with his
good intentions, he will turn out to be a
very useful citizen. Right now he should
move slowly because his judgment isn’t
ripe.
Getting Real Safety.
Some recent discussions indicate that
those interested in “safety first” are talk¬
ing to cross purposes and may unintention¬
ally slow down the process of getting
safety. The point of dispute is about this.
Theoretical men say that, regardless of
cost, the coal operator should put safety
appliances in the mines.
Practical men say that there is not
enough money to do this and besides it is
a waste of money until the miners learn to
look out for themselves.
As a matter of fact these two things are
complementary, rather than antagonistic.
However, the practical men are right in so
far as they go. That is, they are right in
saying that safety begins with the in¬
dividual. No man can disregard his own
safety and hope to escape injury no matter
by how many appliances he is surrounded.
If he is a free agent at all and if he moves
about, he must use his eyes and brains
to protect himself. So, unless thd man
protects himself there is no chance that
he can by using machinery escape acci¬
dent.
Also the theoretical men are right when
they say that the mines need devices to
promote safety. That is, a man may be
the most artful dodger on earth and may
be the most cautious man alive, but dodg¬
ing and cautiousness will not save him if
the mine explodes because of dust or be¬
cause the gas has not been brushed away.
Also no amount of precaution can save a
man who is compelled to work in a mine
where the roof is on the point of falling.
Both sides are right in the positions
they take, though neither side is right if
it assumes that what it proposes is the
only thing that should be done.
No. 15]
THE BLACK DIAMOND.
291
Coal’s Red School House.
Someone said just the other day, in
speaking about the associations of oper¬
ators which are now being formed all
over the country, that such things are
not an ultimate and therefore are not
permanent, nor a final solution of coal’s
difficulties.
We might go very much further than
that. We might say to the gentleman
who made that comment that nothing in
this world is permanent, nor is anything
a solution of anything. Life itself is a
mighty uncertain thing. San Francisco
found out a short time ago, that the thing
we call terra firma can be the most un¬
stable thing imaginable. We are accus¬
tomed to look on banks as sturdy and
strong, only to have that idea blasted out
of our minds when something happens
which makes the banks seem as unstable
as quicksilver. As a matter of fact, we
are in a whirlpool of transition and
change. Nothing is ever the ultimate of
anything. We are living a life composed
of a series of temporary expedients, each
of which serves our purpose for a little
while and then passes on to give place
to something that will serve us through
the next emergency. That much for the
broader view of the subject.
The coal association is undoubtedly not
an ultimate for the trade. It probably
will not prove permanent. We would all
feel sad if it did. But the coal associa¬
tions are filling a tremendously im¬
portant gap in coal trade afifairs. They
are bridging the distance between ignor¬
ance and wisdom in coal production and
sale. They are practically the “little red
school houses” which are lifting the coal
trade out of that stupid period when no¬
body knew the cost of anything, into that
period when everybody knows the cost
of everything.
As these associations fulfill their mis¬
sion of educating the trade, undoubtedly
they will pass out of existence and give
place to something that is better. In the
meanwhile, they are indispensable and
are proving their intrinsic worth every
day.
The Value of a Customer.
All customers have two values. One
is that which he places upon himself.
The other is that which the merchant
places upon him as a buyer. If you rate
a customer at his own value, you must
rate him rather highly. If you rate him
according to the merchant’s estimate, you
usually find that his value is the amount
that it cost to put him on the merchant’s
books, plus the amount which his busi¬
ness is likely to return in the course of
a year.
Under some modern conditions, both
of these estimates of the value of a cus¬
tomer are disregarded because the esti¬
mate is made by neither principal, but
by the office force of the merchant. That
is, the modern office has been card in¬
dexed, and cross card indexed until the
customer ceases to be a personality. In¬
stead, he has become a red, pink, yellow
or some other colored card. About the
only thing the office knows about him is
that he buys or does not buy and pays or
does not pay. That information is told
by the color of the card.
That is all very fine from the stand¬
point of office system, and perhaps it
simplifies details a lot. But, it does not
take care of a matter which is sacred to
the customer — his individuality. Nor
does it assure the man who ordered his
clerks to install the card index that he
is going to get back the price that he
paid to get that man’s name on that card.
The owner of the business, of course,
is interested in the customer from the
standpoint of revenue only. This makes
him keen for something besides a card
record. For example, one retail concern
in Chicago found out a few years ago
that it cost about ten dollars to get a new
account on the books. This merchant’s
instructions to his clerks were to hold
that customer until his business had paid
that cost or more. ,
The customers of a wholesale house,
perhaps, cost that merchant a great deal
more than $10.00. Therefore the cus¬
tomers who are embalmed in cards rep¬
resent to a business an outlay of a great
deal of money. The operator’s interest
in those cards is in seeing, first, that he
gets back what it cost him to get those
names on his books and, second, that
that card — or the man behind it — helps
to support the organization in the way
it — or he — should.
It occurs to us that the way to do both
things is to cease to consider the cus¬
tomer as merely a card of a certain color.
Instead, it would be well to consider him
according to something of his own esti¬
mate of his value. That restores at once
the personal relation between the buyer
and seller, and therefore vitalizes the
card index system.
The Money Situation.
For a matter of several months the
reserves in the banks have shown such
relation to loans as to indicate to bankers
that America was not using, as it should,
its credit for the purpose of carrying on
ordinary business. In other words, the
banks stood ready to accommodate bor¬
rowers to much larger extent than they
were, and even were anxious to do so.
This situation is not explained solely by
the fact that the banks wanted the busi¬
ness. Rather the bankers took that atti¬
tude because the country needed the in¬
dustry which the borrowed money would
stir up.
Then came the commissioners of the
allies from Europe and proposed to bor¬
row $5(X),000,000 from this country. They
proposed to spend it here for food, sup¬
plies, etc., for the army of the allies.
This promised to give American finance
precisely the thing that it was looking
for, but which the bankers could not get
through the borrowing of money by indi¬
viduals. That is, the banks increased
their loans and all of that money went
to increase the merchandising business
of American concerns. It was simply the
employment of the loaning power of
banks to encourage American business.
The bankers therefore were fully justi¬
fied in extending the foreign loan if only
to increase the business of the country.
That, we understand, was their main pur¬
pose in making the loan.
However, the banks did not go into
this loan particularly as a banking ven¬
ture, but more as an underwriting propo¬
sition. That is, they wanted to lend the
money to Europe, but they wanted the
American people to take it off their
hands, buying the notes as an invest¬
ment. The banks consequently made the
loan and crippled their lending power to
do it. But the people did not respond as
they should. Instead, those who had the
money were somewhat more inclined to
speculate in the stocks of the companies
that were going to sell the stuff to Eu¬
rope than they were to put up their share
of this half-billion of dollars.
The bankers were consequently facing
the proposition that the people were
about to abandon the European loan to
the banks, while the money which should
have gone to take up the loan was
thrown upon the stock market in a wild
speculative campaign that was doing no
one any good. As a consequence, the
board of governors of the stock exchange,
early this week, decided to quash the
wild speculation in certain stocks. To
that end they asked the brokers to double
the margins that they were exacting on
these shares.
With the stock market returning to
normal under this influence, the patriot¬
ism of the American people will very
soon express itself. Also their good
judgment will help them decide. The
result will be that the foreign loans will
be subscribed for and taken off the hands
of the bankers, who will then have their
resources in liquid form again so they
can extend aid to reviving business at
home.
Coal for the Navy.
Our geographical location has a material
influence upon the construction of our ves¬
sels of war. The factors in our geograph¬
ical position that make for this difference
are our isolation and the long stretches
between the literal of the United States
and the ports of its insular possessions.
Our comparatively few and widely separ¬
ated coaling stations, coupled with this
isolation, have made it necessary for our
naval constructors to devote especial at¬
tention to affording ships the greatest pos¬
sible coal carrying capacity.
To permit the necessary weight of coal
to be carried our builders have been com¬
pelled to limit to the utmost the weight
of the armor and of machinery, thereby
sacrificing, to some extent, the vital qual¬
ities of protection and speed. The neces¬
sity of limiting the weight of, and space
occupied by the boilers, has forced the in¬
stallation of boilers of light weight and
compact design with limited combustion
space. The want of coaling stations also
makes it imperative that the coal of the
United States navy should be of the best
kind, so that the coal burning vessels will
have the maximum steaming radius.
In explaining this Lieut. Comander J.
O. Richardson, U. S. N., in the Journal
of the American Society of Naval Engin¬
eers, argues against training men to burn
western coal to the exclusion of eastern
coal, for such men would have to forget
what they now know about the use of
navy standard steaming coal, and it would
result in reduced naval preparedness, be¬
cause in time of war the best obtainable
coal must be used and the men must be
qualified to produce the maximum effi¬
ciency with this coal.
— Army and Nai’y Journal,
292
THE BLACK DIAMOND
[October 9
News Local to Chicago.
Travelers now in the west send back reports
from north and south that collections are im¬
proving.
W. J. Carney, president of the Carney Coal
Company, will be in Wyoming for two weeks
looking after his operations in that section.
'I'he Mueller Coal Company, with a yard on
the northwest side, filed this week a petition in
bankruptcy. It scheduled assets of $9,530.66 and
liabilities of $47,902.66.
C. A. Winne, formerly a member of the
firm of Eljah & Winne, Cedar Rapids, Iowa,
has returned to Chicago, where he will re¬
enter the coal business.
W. J. Walsh, general manager of the Spring
Creek Coal Company of Springfield, Ill., was
visiting the trade this week. Mr. Walsh re¬
ports that the Sangamon county operators
are holding to prices quoted unusually well.
Secretary I. L. Runyan spent a portion of
the week in Louisville, Ky. Mr. Runyan
termed this visit his vacation, which, by the
way, is the first one he has enjoyed in his
three years as secretary of the Illinois & Wis¬
consin Retail Dealers’ Association.
Carl Scholz, president of the Rock Island
Coal Company, and incidentally of the Ameri¬
can Mining Congress, returned to Chicago on
Sunday morning from his western trip. He
took the northern route home via the Canadian
Pacific from San Francisco, where he had
been attending the convention.
According to reports from Washington, mem¬
bers of the Interstate Commerce Commission are
having a hard time to decide what they will do
about granting a rehearing on rates in the west.
They do not seem to want another hearing. At
the same time they do not just like to come out
and say that the incident is closed. The question
was to have been decided on October 4th, but it
wasn’t.
Geo. W. Reed of the Lincoln-Springfield
Coal Company notified his friends last week
that he had bought two season tickets for the
city baseball series and consequently would
be on the job this week only in the mornings.
'I'rue to his promise, he disappeared from his
office on Wednesday afternoon and anyone
desiring a critical report of the .games can be
accommodated.
Van. H. Manning, director of the Bureau of
Mines, was a visitor to the Chicago trade on
Wednesday of this week. He stopped off on
his way back to Washington from San Fran¬
cisco, where he attended several mining meet¬
ings. He announces rather important changes
of policy in connection with the bureau in
this particular ; The bureau heads of depart¬
ments will be located hereafter in Washing¬
ton instead of being located in different parts
of the country as they have heretofore. They
will form sort of a cabinet for the director and
thus the work of the bureau will be simplified
by being centralized. Mr. Manning left on
Wednesday night for the east intending to stop
in Pittsburgh on his way home.
Roy Makemson gives it as his opinion after
a recent trip over the big territory in the
middle west that not more than twenty-five
per cent of the normal volume of retail coal
business has been done for this year. He
says that seventy-five per cent of it is still
to be done. This means that the trade is
going to have a lively demand all through the
remainder of this year. What helps this im¬
pression along is the fact that a great many
of the retailers have not obtained their money
for coal which they sold and delivered last
year. As a consequence, the dealers are not
selling the coal on credit this year, unless
they see some ready money. This promises
to result in a peddling coal business all win¬
ter. and incidentally a steady demand from the
retailers on the wholesale market.
Frank Nelson, Jr., president of the Bryan Coal
Corporation and of the Empire Coal Company,
with headquarters at Birmingham, Ala., was in
New York last week. Mr. Nelson is quoted by the
Times as sayin.g : “The business situation now is
excellent. You see the furnaces, foundries, and
steel mills are the biggest users of coal, and they
had been skimping for a long time. They and
the railroads had really led a sort of hand-to-
mouth existence. But when they began to get
orders, that started the demand for our product.
General business in Alabama is .good, and the
people are optimistic.”
Small Activities in
Detroit Local News.
W. T; Roberts, western sales manager of Wil¬
liams & Peters, with headquarters in Buffalo,
visited Detroit coal men a few days ago.
Highland Park, suburb of Detroit, has passed
an ordinance prohibiting sale of wet coke, the
penalty being a fine of $10 to $100 for violation
of the rule.
Ford Motor Company, Detroit, is receiving
proposals on about 14,000 tons of nut, pea and
slack and on about 25,000 tons of mine run, to
be delivered at the company’s plant in Highland
Park.
Two additions recently were made to the sales
force of the Southland Coal Company, Detroit.
E. A. Phelps, formerly with the Michigan Coal
Company, has been assigned to the state terri¬
tory, and W. W. Clements of Cincinnati is now
covering Kentucky, southern Ohio and Indiana
for the company.
Jacob Borin of Borin Bros., retail coal dealers
at Westminster avenue and the Grand Trunk
Railroad, Detroit, faced a 44-caliber automatic
in the hand of a would-be robber, who entered
the office Monday. Seizing the weapon, Borin
called his brother. They obtained the revolver,
but the hold-up man escaped.
Cleveland News Notes.
Robert Kline, well known in the coal business
here, is now with the Myers Coal Company.
B. W. Wistar, northern sales agent of the Ba¬
der Coal Company, Buffalo, was in the city early
this week.
J. K. Barber, manager of the local department
of G. P. Bassett, Jr., Pittsburgh, was in the city
a few days ago.
'W. J. Houston of the Mlercer Iron & Coal
Company, Stoneboro, Pa., called on the local
dealers this week.
It is said that quite a little West Virginia slack
has been shipped in box cars during the past
week, wherever customers could handle it in this
way. Had this not been done, it is probable that
the coal could not have been shipped at all.
Joseph Good, for some years manager of the
Cleveland branch of the Pittsburgh-Buffalo Com¬
pany, has become general sales agent of the Na¬
tional Coal Company, whose offices are on the
fifteenth floor of the Rockefeller building.
The Van Epps Coal Company reports a mate¬
rially increased activity in the anthracite market,
with some difficulty in securing prompt shipment,
because of the car shortage. This company has
also had a heavy demand for the domestic coals
handled;
Buffalo Trade Briefs.
H. G. O’Brien has succeeded F. L. Garrison,
resigned, as sales agent of the Pittsburgh-West-
moreland Coal Company, coming here from the
company’s home office.
C. J. Renwick, manager of the Keystone Coal
& Coke Company’s office, has gone to the Pan¬
ama-Pacific Exposition. He will return by way
of New Orleans, takin.g the ocean route to New
York from there.
Irving S. Underhill, president of the Underhill
Coal Company, is this week in charge of the
campaign of Knowlton Mixer, who is running
in next Tuesday’s primaries for councilman. Mr.
Underhill is a member of the Municipal League,
which has endorsed several candidates in the
coming election.
A meeting of the Western New York Canal
Referendum Association was held at the Chamber
of Commerce on Wednesday. Various Buffalo
organizations of business men attended. One of
those appointed by the mayor to represent this
city was D. L. Tuttle, sales a.gent of the Phila¬
delphia & Reading Coal & Iron Company. The
purpose of the meeting was to start a campaign
for a canal bond issue.
The new Cadogan mines of the Alle.gheny
River Mining Company, a branch of the Shaw-
mut Company,' were opened this month. When
fully developed the mines will turn out about
5,000 tons a day. They are located on the Alle¬
gheny river, six miles below Kittanning. The
town of Cadogan now has eighty houses and
a superintendent’s residence, doctor’s office, hotel,
etc., have been completed on a commandin.g site
overlooking the river. Schools, churches and
playgrounds will be provided and about fifty
more dwellings will be added as soon as the
Many Coal Centers.
mines approach full capacity. The entire equip¬
ment is of the latest type, operated by electricity.
William H. Hufstader, vice-president and gen¬
eral manager of the J. B. Jenkins Coal & Coke
Company, died at his home here on October 4th,
after an illness of several months. He was forty-
eight years old and leaves a wife and four sons,
Thomas, William, Orton and Robert, besides a
sister, Mrs. Geor.ge N. Finch, of Maybie, W. Va.
Mr. Hufstader had been in the coal trade for a
number of years, with the Shawmut-Pittsburgh-
Buffalo and Jenkins companies. Previously he
had been superintendent of the P., S. & N. Rail¬
road with headquarters at Hornell. He was a
faithful, conscientious worker for the various
companies with which he was engaged and had
steadily risen in a business way, winning not only
the respect and good will of all his associates
but the friendship of many, both in and out of
the coal trade.
A number of additional appointments have been
made by the Ohio mining department, which is
one of the departments under the Ohio Industrial
Commission. Only two of the deputy inspectors
in the various sub-districts in Ohio have been
retained. They are Robert Wheatley in District
No. 12 and L. D. Devore in District No. 10.
Recent appointees are : Daniel Jones of Coal,
succeeding John Burke in District No. 1; James
Dugan of Murray City, succeeding Morris All-
baugh in District No. 2; John S. Cox of Glouster,
succeeding Andrew Ginnan in District No. 5; J.
P. Davis of Alliance, succeeding Evan Lewis in
District No. 7; Lot Jenkins of Martins Ferry,
succeeding William H. Werker in District No. 8;
B. S. Smith of Byesville, succeeding J. A. Collins
in District No. 4, and Samuel James of Mag¬
nolia, succeeding Dennis Sullivan in District
No. 6.
All the coal interests of West Virginia are
said to be up in arms against the proposed in¬
crease from twenty-five to forty cents differen¬
tial in rate on shipments of coal from West
Virginia to western markets. Coal mine own¬
ers and the miners themselves are said to be
aroused to what they deem an unjust and
unfair discrimination against one of the state’s
important industries. Commercial and civic
bodies have taken up the matter and meetings
are being held to stir public opinion. Funds
have been subscribed to fight the proposed
tariff which the carriers of West Virginia will
ask the Interstate Commerce Commission to
approve.
There is a labor shortage throughout the an¬
thracite fields, says the Mahanoy America. The
companies are hiring men just now for whom they
had no places six months ago. Some aged work¬
ers who had trouble in gettiag jobs because of
their advanced years, are being taken on at many
of the collieries. One of the companies has
given work to a man who believed that he had
been blacklisted forever. Never before has labor
been so scarce in the hard coal belt. The Eu¬
ropean war is given as one cause, immigrat* )n
being almost completely shut off since the strug¬
gle began and thousands of men have returned
to fight for their native lands.
The Keystone Consolidated Publishing Com¬
pany, of Pittsburgh, Pa., has just issued the sec¬
ond edition of its coal field directory and mining
catalogue. The publication gives the coal opera¬
tor a condensed description of all classes and
types of machinery and equipment used in and
about coal mines. The directory section contains
a list of mining operations and officials with ad¬
dresses.
Hugh Munro of St. Paul, secretary-treasurer
of the Clarkson Coal & Dock Company, who
died at his St. Paul home a few days ago, was
formerly a resident of Duluth, and was in
the coal business here up to fifteen years ago.
He was very well known and quite a number
of coal men and others from Duluth attended
his funeral.
Anthracite Shipments.
New York, October 8. — {Special Telegram.) —
.\nthracite shipments for September were 5,518,-
771 as compared with 6,246,192 for September
last year. For nine months they show a decrease
of 2,688,470 tons as compared with the corre-
spondiag months of last year.
No. 15]
THE BLACK DIAMOND
293
Facts Which Determine Our Export Prospects.
The Export Situation.
The shortage of vessels for taking export coal
cargoes is likely to bring about a very radical
curtailment of exports of American coals during
the next few months, unless relief is received
from sources that shippers do not anticipate at
the moment.
So far the exports for the month of September
are incomplete, but they are expected to show a
total of about 830,000 tons exported through
Hampton Roads, Baltimore and Philadelphia, as
compared with 692,408 tons for the same month
of last year. Tt will be recalled that September
of 1914 was a record month for exports, as it
was the second month following the commence¬
ment of the great European war, and a great
deal of business was placed in this country be¬
cause of the fact that the shipping from England
was during the first few months of the war
greatly demoralized. The present shortage of
vessels for carrying coal is due to the fact that
a great many vessels are being required for
handling the munitions that are goirug to the
warring countries, as witnessed by the movement
of a great deal of munitions through New York
•harbor to Vladivostock, which voyage is so very
lon.g that it ties up a ship for months. Further¬
more, the grain movement is on, as is also the
cotton movement, and these commodities pay
handsome rates that naturally influence tonnage.
Export from Hampton Roads ports for Sep¬
tember ran around 582,943 tons, as compared with
432,685 tons for September, 1914. Incomplete
reports from Baltimore show exports of Sep¬
tember of 200,000, as compared with 128,178 tons
in September, 1914. Philadelphia exports are
estimated as 150,000 tons for this year, as com¬
pared with 58,545 tons for September last year.
Some of the coal exporting companies that
have Greek steamers under charter, have had
several cancellations of steamers that were to
report during October, due to the fact that the
Greek government has called in a great many of
its merchant steamers to be used no doubt as
transport and munition ships. The cables last
week announced that the withdrawing of Greek
cargo steamers from the Cardiff-Mediterranean
service had meant an increase of about ten
shillings a ton on coal freight rates from Cardiff
to the Mediterranean. Tuesday’s cables stated
that Greek ships at Italian ports had been re¬
called. Notwithstanding these withdrawals, some
of the large export companies report that they
have enough steamers under charter to arrive
for loadin.g during October to make their October
business show considerably larger than their Sep¬
tember business.
A diagnosis of the exports for September
shows that Italy continues to receive a very
large percentage of the coal that is going from
this country, especially heavy loads going from
Baltimore and Hampton Roads. Argentine and
Brazil are also receiving good quantities. Ship¬
ments have increased very radically to Chile,
which took 30,193 tons from Hampton Roads.
Shipments continue in good volume to France,
Sweden, Spain, Azores and Egypt. One cargo
of 3,464 tons was shipped from Baltimore to
Russia, which is unusual.
Portuguese interests are said to be inquiring in
this country for considerable tonnage.
Hampton Roads September Exports.
Exports of bituminous coal from the three
Hampton Roads ports for September, 1915, with
comparisons for September, 1914, are as fol¬
lows ;
Lambert’s
Point.
3,049
22,820
9,145
Country —
.-\ugusta, Italy .
Antofagasta, Chile .
Barbados, B. W. I .
Buenos Aires, .‘\rgentine
Bahia, Brazil... .
Caleta Colosa, Chile .
Colon, Panama .
Curacao, D. W. I .
Cienfuegos, Cuba .
Dakar, F. W. A . 5,162
Genoa, Italy . 34,276
Guayamas, Mexico .
Havana, Cuba .
Kingston, Jamaica . .
Italian port .
Lisbon, Portugal .
Leghorn, Italy .
Naples. Italy .
Magdalena, Italy .
Marseilles. France .
Montevideo, Uruguay..
Palermo, Sicily .
Port Said, Egypt .
-1914 -
Newport
News.
Sewall’s
Point.
8,107
12,463
25,990
4,929
6,746
4,878
5,442
4,520
4,593
14,274
18,870
6,657
3,i2.5
Spezia, Italy
.St. Thomas, D. W. 1..
St. Georges, Bermuda.
St. Michaels, Azores. .
Stockholm, Sweden....
Ceara, Brazil .
■Sagua, Cuba .
.Syracuse, Italv .
.Santiago, Cuba .
San Juan, Porto Rico.
St. Lucia, B. \V. I . . .
Gaeta, Italy .
Taltal, Chile .
Boma, Congo .
Torre Annunziata,
Bergen, Norway. . . .
Vera Cruz, Mexico.
Quebec, Canada .
Valparaiso, Chile....
Manila. P. I .
La Plata, Argentine
Demerara, B. G. . . .
Cristobal, Canal Zon
Campana, Argentine.
Gibraltar . . . . . .
Gothenburg, Sweden
Cagliari, Italy .
Huelva, Spain .
Mazatalan, Mexico..
taly .
Totals
Country —
Augusta, Italy .
.\ntofagasta, Chile .
Barbados, B. W. I .
Buenos Aires, Argentine
Bahia, Brazil .
Caleta Colosa, Chile .
Colon, Panama .
Curacao, I). W. I .
Cienfuegos, Cuba .
Dakar, F. W. .
Genoa, Italy .
Guayamas, Mexico ....
Havana, Cuba.. .
Kingston, Jamaica .
Italian port .
Lisbon, Portugal .
Leghorn, Italy .
Naples, Italy .
Magdalena, Italy .
Marseilles, France .
.Montevideo, Uruguay...
Palermo, Sicily .
Fort Said, Egypt .
Pira;us, Greece .
Ponto Delgada, .Azores..
Porto Cabello, A’enezuela
Port of Spain, Trinidad
Pernambuco, Brazil .
Puerto Ferrajo, Italy...
Para, Brazil .
Rio Grande du Sol, Brazil
Rio de Janeiro, Brazil..
Savona, Italy .
Spezia, Italy .
St. Thomas, D. W, I...
St. Georges, Bermuda...
St. Michaels, Azores....
Stockholm, Sweden .
Caera, Brazil .
Sagua, Cuba .
•Syracuse, Italy .
■Santiago, Cuba .
•San Juan, Porto Rico...
St. Lucia, B. W. I .
Gaeta, Italy .
Taltal, Chile .
Boma, Congo. .
Torre .Annunziata, Italy.
Bergen, Norway .
PirjEus, Greece .
Ponto Delgada, Azores..
Porto Cabello, Venezuela
Port of Spain, Trinidad.
48,107
4,500
Puerto Ferrajo, Italy...
Rio Grande du Sol, Brazil
Rio de Janeiio, Brazil...
Savona, Italy .
25,295
5,006
2,100
6,011
7,006
16,540
4,008
6,000
11,625
7,194
5,161
5,943
7,545
6,691
5,636
7,004
4,545
680
3,209
4,677
3,236
4,543
4,967
3,467
6,443
1,988
6,621
292,396
Lambert's
Point.
6,305
4.607
16,048
4,117
6,477
57,020
5,486
4,308
18,666
56.166
2,013
13,717
1,978
16,450
6,023
18,724
26,551
4,768
8,897
9,600
1,446
2,296
4.707
4,113
13,350
8,414
12,423
10,585
4,432
1.000
961
1,636
6.707
4,502
6,164
' 7, .520
'i5,79’3
6,627
12,069
2,960
11,690
4,275
5,992
8,810
766
6,4 82
5,850
3,300
126,707
-191.5-
Newport
News.
6,400
13,762
Sewall’s
Point.
13,277
3,620
2,175
9,749
1,912
8,788
7,018
984
6,195
5,4.51
3,742
Seven
Vera Cruz, ilexico....
Quebec, Canada .
Valparaiso, Chile .
Manila, P. 1 .
La Plata, Argentine...
Demerara, B. G .
Cristobal, Canal Zone. .
Campana, Argentine....
Gibraltar .
Gothenburg, Sweden...
Cagliari, Italy .
Huelva, Spain .
Mazatalan, Mexico .
3,215
2,571
3,005
5,353
4,327
57,203
Totals . 373,801 149,739
Destinations of exports of bituminous coal from
Hampton Roads ports for September, were as
follows ;
Country — Tonnage.
Italy . 236,063
Panama . 57,020
C uba . 52,653
Argentine . 45,460
Brazil . 41,289
CTile . . 30.193
French West Africa .
France .
Trinidad .
Greece .
Egypt .
Sweden .
Danish West Indies .
Portugal .
St. Lucia, B. W. I .
Mexico .
Barbados, B. W. I .
Uruguay .
.Azores .
Venezuela .
Tamaica, B. W. I .
Bermuda .
18,666
11,690
10.699
9,600
8,897
6,707
6,486
6,023
5,4.51
5,228
5,109
4,275
3,082
2,296
1,978
961
Baltimore September Exports.
complete statement of exports of bituminous
from Baltimore for the month of Septem-
1915, show destinations and tonnage as fol-
In
coal
her,
lows :
Country —
Italy .
Sweden
France . . . .
Cuba .
Spain .
Egypt .
Costa Rica.
Argentine . .
Brazil .
Peru .
Russia .
Panama
•Martinique .
Venezuela . .
Tonnage.
72,825
38,666
17,499
16,405
10,330
7,031
6.882
9,49!)
6,858
4,000
3,464
2,949
919
337
Total . 197,664
Recent Coal Freight Charters.
P, Smith. Philadelphia to
P>o
Cay
en, Philadelphia to Calais,
Philadelphia to Calais, coal.
Montevideo.
Schooner Melbourne
Francis, coal. p. t.
Schooner Fanny C.
coal, $1.35.
Schooner William Booth,
$1.30
Steamer Monkstone (Br.), Virginia to
coal, 30s, option Buenos Aires, 37s, October.
Steamers Kaupanger (Nor.), and llano Jensen (Dan.),
Baltimore to Gothenburg, coal. p. t.
Steamer Sangstad (Nor.), Baltimore to Port Limon.
coal. p. t.
Schooner Clara E., Randall, Philadelphia to Fajardo,
P. R., coal, p. t.
Schooner Phineas M, Sprague, Philadelphia to Man*
zanilla, coal, $3.75.
Steamer Chasehill (Hr.). Baltimore to Genoa, coal, p. t.
Steamer Muskegon, Atlantic Range to Port ^lilton,
coal, p. t.
Steamer
coal, p. t.
Steamer
p. t.
Tryn (Nor.), Philadelphia to Cienfuegos,
San Guiseppe (Ital.), Baltimore to Italy, coal,
•July-
Months Coal Exports.
TONS.
- . , - Seven
Months Ending
1914
Quantity. Value.
July -
1915
Quantity. Value,
1914 1915 1913
Quantity. Value. Quantity. Value. Quantity. A^alue
Coal —
•Bituminous . 1,339,987 $3,151,064 2,226,493 $5,754,223 2.448,913 $12,855,806 2,211,664 $11,543,636 1,997,817 $10,348,321
Anthracite . 338„997 $1,803,990 273,206 $1 ,430,224 -
Exported to —
Canada .
Other countries..
328,175 $1,754,765
10,822 49,225
2,411,892 $12,676,788 2,175,407 $11,361,393
267,712 $1,110,361 37,021 179,018 36,257 182,243
5,494 19,863 - - -
- - - - 10,008,012 $25,641,223 7,090,084 $17,548,483
1,968,404 $10,216,856
29,413 131,465
8,587,735 $22,563,356
Exported to-
Italy .
502,750 $1,488,941
1,611,791
$4,862,571
Canada .
.1,005,859 $2,161,651 1
,016,413
2,163,387
7,120,245 $17,477,803 4,525,830 $
9,927,825
3,790,586
8,123,772
Panama .
17,450
47,115
52,805
143,708
321,507
869,832
168,898
454,938
280,027
766,837
Mexico .
. 38,571
132,858
14,138
66,976
350,961
1,004,007
190,363
708,294
197,739
908,121
Cuba .
77,880
222,312
91,162
240,713
772,366
2,072,767
616,574
1,722,103
620,237
1,717,876
(Jther West In-
dies and Ber-
muda .
. 42,267
122,865
43,959
133,801
377,464
1,088.090
355,274
1.050,579
266,258
819,472
Argentina .
1.5,320
41,493
114,162
340,661
48,626
135,214
112.408
.327,236
533,891
1.609,219
Brazil .
4,612
16,893
84,813
257,601
187,555
592,851
100,530
329,837
429,969
1,298,992
26.689
82,525
45,594
134,908
99,834
294,073
O^’her countries.
. 138,028
405,877
279,602
835;910
829,288
2,400,659
974,613
2,892,763
727.403
2,162,423
Total coal....
.1.678.984 $4,955,054 2,499,699 $7,184,447
12,456,925 $38,497,029 9,301,748 $29,092,119 10,585,552 $32,911,677
Coke .
57,648
$215,384
69,825
$277,518
550,751
$2,055,172
408,441
$1,520,369
430,604
$1,653,292
*The above figures do not include fuel or bunker coal laden on vessels engaged in the foreign trade, which aggre¬
gated during the month and seven mcnths ending July as follows: July. 1914, 681.370 tons, valued at $2,243,396;
Inly, 1915, 712,880 tons, valued at $2,397,518; seven months Tu’y. 1913, 4,409,307 tons, valued at $14,375,557; 1914,
5.525,876 tons, valued at $14,964,154; 1915, 4,354,037 tons, valued at $14,651,753.
IFigurvS are for 6 months, January to June, inclusive.
JFigures cover period beginning July 1.
294
THE BLACK DIAMOND
[October 9
General Review.
The Buying of Domestic Coal Generally
Is Heavier — Steam Coal Is Fair
and Cars Are Scarce.
Some of the abnormal features of the market
that liave been bothersome for the last month
have toned down a little. If the trade were de¬
pendent upon that, as heretofore, the situation
would be easier. However, as an offset, there has
come a very much bigger demand for domestic
coal in all parts of the country. Thus the oper¬
ators have gained in the latter direction far more
than they lost in the former and the whole mar¬
ket as a consequence is decidedly stronger.
.Also, it is true that while the trade has lost
some tonnage in the matter of exports, it has
.gained at home more than it lost abroad. Thus
in the steam department, the operators have had
a net increase in business.
In the matter of price, the situation pretty
.generally has strengthened up. In the first place,
the danger of a shortage of anthracite has
strengthened the market there. The home de¬
mand has removed all suggestion of price wars
from the smokeless field. In the east the im¬
provement in the domestic demand has so
strengthened that situation, even the operators
who were cuttin.g prices are now standing out for
circular figure or asking premiums.
The car situation, especially in the east, is be¬
coming quite bothersome. A short time ago the
Baltimore & Ohio Railroad, for one example,
gave notice that the car allotment plan for this
fall was goin.g into effect. This announcement
is never made until the car situation becomes
threatening. At the same time, this week that
and other railroads have notified the operators
that they would have to be content with only a
percentage of the cars instead of a full allotment.
This means the danger zone has been entered. In
some places in West Virginia, the report is that
some of the railroads are only able to furnish
enough cars to keep the mines runnin.g about
forty per cent of the time. In the west the car
shortage is not serious so far, but the railroads
are beginning to appeal to the operators to load
cars to full capacity, to move them quickly, and
to give as direct billing as possible in order to
avoid the congestion of equipment and later a
shortage of cars. That is, even in the west, the
pinch is beginning to be felt. The reason for this
undoubtedly is that while the crop movement was
held up for quite a while on account of wet
weather, the roads now being in good condition,
the grain movement is started. This tightens the
engine and car situation.
Admittedly, the movement of the coal to the
lakes is, for this year, below normal and there
was some belief that the coal operators would try
to amend affairs toward the end of the season
of navigation. If that were the intention of the
operators, the movement would now be under
way, as the season has only six weeks to run.
Some operators are indeed disposed to ship coal
and some of the docks are inclined to buy it.
The difficulty now is to get boats. This is the
season when the grain movem.ent is heaviest and
since upper lake shippers are payin.g six cents
a bushel for transportation, the boats are going
into that trade, rather than stop to take coal on
the up-bound trip.
.■\fter all, the determining factor in the whole
market has been the weather. From east to west
the temperature has been rather low or enough
to make a fire necessary. The lower temperature
has been accompanied mainly by high winds,
which increased the consumption of coal. Every¬
thing considered, the operators are having a
good market at prices which are more than fair.
•A. H. Coolidge, sales manager of the Imperial
Coal Sales Company, severed his connection Oc¬
tober 1st, instead of November 1st, the condition
of his wife making it necessary that he should
be at her bedside in Dayton, Ohio. She under¬
went an operation this week at a Dayton hos¬
pital and the latest information is to the effect
that the operation is successful and that the
patient is improving. Due to the retirement
of Mr. Coolid.ge from the offices of the Imperial
Coal Sales Company, Quinn Morton, president
of the company and of the Imperial Coal Com¬
pany, of Burnwell, W. Va., was at the Cincinnati
offices last week. Mr. Morton was an invalid for
a month in the Sinton Hotel of Cincinnati in
.August, but has recovered and will divide his
time between the Burnwell offices and Cincinnati.
Chicago Market.
Buying Has Eased Up a Little After the
Rate Changes, But Prices
Are Firm.
Office of The Black Diamond,
Chicago, October 7th.
The position of the Chicago market is almost
exactly the reverse of what it was two weeks
ago. Then the stren.gth was in the western coals
and the weakness was in tlie eastern coals. To¬
day the eastern coals are quite stronger and the
western coals are not quite so strong. As a
matter of fact, the demand all told, has increased
considerably, but western buying is not quite so
heavy as it was because the freight rates have
now gone into effect. Up until the first of Octo¬
ber the retailers were buying to get advantage
of the low freight rate. For the first couple
of weeks of this month they are moving out
their stocks instead of buying new supplies. That
gives the eastern coal on which no freight rate
changes have been made a slight call on the mar¬
ket for the time being.
Anthracite coal has begun to pick up quite a
good deal. The operators have reported a pro¬
gressive shortage of production at the mines
until now the output is two and one-half million
tons behind what it was this time last year. With
the first of October the buyin.g movement started
in real earnest and not only are prices firmer,
but sales are very much heavier.
The smokeless coal is back to the point where
it is again practically a one-priced coal. The
cold weather of the last week caused the real
estate agents to buy coal for their flat buildings
and this threw the retailers upon the market for
fresh supplies. This took up the relatively small
supply of free coal and as a consequence, the
market is today firm at circular price of $1.40
on mine run. Lump and egg are still a little easy
but the price has not broken below $3.00 a ton
for the last week. The prices up to Thursday
were :
F. p. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 4.05@4.30 2.00@2.25
Somerset county coal is pretty firm. Even the
smaller concerns are now gettiag $1.35 and the
larger operators who happen to control the bet¬
ter grades of coal, are getting a minimum of
$1.40. On lump and egg, the larger operators
are holding for $3.10 or better, although here and
there some sales are made for $3.00. Prices up
to Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30@3.40 $1.25@1.40
Lump and egg . 3.80@4.30 1.75@2.2.5
Owing to a curious custom among the retailers
in Chicago, the Hocking market has not been
quite so stron.g this week. They change from
summer to winter circular price on the first
of October, the difference being fifty cents a
ton. Prior to the change, the buying was quite
heavy. After that change the market eased off
a little. For three-inch lump the price for last
week has been in the main $1.75, although some
operators are taking less Occasionally, the price
.going down to $1.60. The market up to Thurs¬
day was :
F. p. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.15@3.40 $1.50@1.75
The splint situation is just a little mixed. The
operators have recently had a very extraordinary
demand for coal which warrants them in holding
for $1.50 a ton at the mines as a minimum on
splint coal in box cars. Most of this coal of
course is for shipment through Chicago to the
west. There the all-rail coal is encountering dock
coal which was sold by the same mines to the
(locks during the summer at very much lower
prices. In consequence, the dock prices are fif¬
teen to twenty-five cents a ton below the all¬
rail price. Even so, a fair volume of business
has been done. The prices up to Thursday were :
F. O. B. F. O. B.
Xanav/ha — Chicago. Mines.
It4-inch lump . $3.15(®3.40 $1.25@1.50
Eastern Kentucky coal shows a very good de¬
mand for the better .grades but the same variabil¬
ity of price as heretofore, has been noted. Some
of the off-grade coals are selling for $1.65, usually
such coals are inferior preparations. Better pre¬
pared and best known coals are commancling
$2, while the leader of the market is command¬
ing $3.35. The prices up to Thursday were :
F. O. B. F. O. B
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.6.5@4.15 $1.75<®2.25
Egg . 3.25@3.75 1.35@1.85
The Franklin county situation under any nor¬
mal condition of production would be considered
exceptionally strong. As a matter of fact, an
appalling volume of that coal has been moving
to market lately, at prices that are considered
more than fair. The only handicap under which
the market is suffering is not one of normal
growth of demand, but an abnormal growth of
production. The doubling of productive capacity
in places and a steady increase in productive
capacity in other places has given the market
a mighty task to absorb the, output. Even so,
lump and number one nut are firm in the coun¬
try at $1.75 and egg here and there is sold at
$1.60, but in the main is firm at $1.75. The num¬
ber two nut is in most places about firm. Screen¬
ings after a period of weakness a short time
ago, have strengthened up, selling at fifty cents a
ton in the city and sixty cents in the country.
Prices up to Thursday were :
F. O. B. F. O. B.
Franklin County — Chicago. Mines.
Lump . $2.80 $1.75
Egg . 2.80 1.75
No. 1 nut . 2.80 1.75
No. 2 nut . 2.45 1.40
Mine run . 2.15@2.20 1.10@1.15
2-inch screenings . 1.55(ai.63 .50@ .60
Williamson county coal has had a better de¬
mand within the last week. A few of the mines
are runnin.g to capacity, but of course the field
cannot do that because we are not in any such
extraordinary times as would warrant keeping
all the mines busy. The better operators have
held firmly to circular of $1.75 and a few of the
mines which might be said to be in the second
division have switched over from the $1.60 cir¬
cular to the higher one of $1.75. Even the
smaller operators are not reported as getting
below $1.60. The smaller sizes are not moving
quite so well, due to slowness of the steam trade.
The prices up to Thursday were :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65(®2.80 $1.60@1.76
Egg . 2.65(®2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county continues to devote itself mainly
to steam coal with most emphasis on steam lump
at $1.30 to $1.30 and screenings about fifty cents.
There has been a steady increase in demand for
lump coal with the prices strengthening up to
$1.75. Prices up to Thursday were:
F. O. B. F. O. B.
Saline County — Chirago. Mines.
Lump . $2.65<®2.80 $1.60@1.75
Mine run . 2.20
Screenings . 1.55@1.65
154-inch lump . 2.35
The market on Sangamon county lump coal is
firm at $1.75. The egg is not moving quite so
well, but the nut coal is firm. Screenings have
strengthened up somewhat within the last week,
going to forty-five cents in most places and to
fifty cents in some. The prices up to Thursday
were :
F. O. B.
Central Illinois — Chicago.
Lump . $2.47
Egg . 2.32@2.47
Nut . 2.47
Mine run . 1.87
Screenings . 1.22
Knox county coal continues to be devoted to
the steam coal, namely with screenings at sixty-
five to seventy cents and mine run not firm at
$1.05 to $1.10. The prices up to Thursday were.
1.16
50(^ .60
'1.30
F. O. B.
Mines.
$1.65
1.50@1.65
1.65
l.OS
.40
F. 0. B.
F. O. B.
Knox County—
Chicago.
Mines.
Lump .
. $2.37
$1.5C
Eeg .
1.68
Mine run .
. 1.87
l.Oi
Screenings .
. 1.52
.65
The demand for
the
number four
coal from
the Clinton field by
the domestic trade has in-
creased preceptibly within the last week, the best
indication of the market is the increasing de-
mand for the number five and six coal for do-
niestic purposes. The
prices up to
Thursday
were :
F. O. B.
F. 0. B.
Clinton —
Chicago.
Mines.
No. 4 domestic lump...
. $2.42@2.57
$1.65 (®1. 75
No. 4 egg .
. 2.12
1.35
Nut .
1.35
No. 5 and 6 mine run.
. 1.87
1.10
No. 5 and 6 screenings
. 1.37@1.42
,60(® .65
The coke market
is
stronger. The
Connells-
ville foundry coke is now sellin.g at $2.25 to $2.40,
and furnace coke $1.90 to $2.00. By-product coke
is firm at $5, while the domestic sizes of by¬
product are just a trifle easy at $4.65 to $4.75.
Gas house is reported a little stronger than last
week. The prices Up to Thursday were :
F. O. B.
Chicago.
.$4.85(316.00
. 4.90@5.10
. 4.fi5(®4.7.’i
. 4.05(^4.75
. 3.90(®4.00
Coke —
Connellsville .
By-proHiirt. foundry .
TV'prjduct, eggr and stove.
T^v-product nut .
das house .
No. 15]
THE BLACK DIAMOND
295
Pittsburgh Trade.
Shipments on Contracts Are Heavy and
Some Good Spot Sales Have
Just Been Made.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., October 6, 1915.
While there has been no pronounced general
activity in the Pittsburgh coal market the past
week, some very good business has been done
in spot coal, and decidedly larger deliveries on
contracts. Prices have not varied greatly from
quotations of some weeks past, but producers
are not anxious to book orders at current
figures. In a number of instances coal opera¬
tors will not consider 1916 business except at
sharp advances, the larger concerns quoting
.$1.25 to $1.30 for mine run, $1.35 to $1.40 for
three-quarters, and $1.40 to $1.50 for five-quar¬
ters lump coal, slack bringing eighty cents to
eighty-five cents when it can be had, but a
decided scarcity is felt.
There is a general and emphatic complaint
of car shortage, and scarcity of labor in both
coal and coke, and with slow but steadily
advancing prices in both lines the situation
may be likened to that of the war in Europe —
with the producer representing the Allies and
deciding to turn the tide a little from the way
it has been running.
Generally the war products business is still
the dominating factor, and the rush of busi¬
ness is confined to the manufacture of war
supplies and related products, the merchant
producers of both coal and coke as yet not
feeling to any great extent the boom or the
demand for domestic industrial consumption.
Foreign inquiry holds up well, but there seems
to be less general publicity in connection with
this class of buying.
Railroads have been more pronounced buy¬
ers and the stocking process seems to be
continuing. The car shortage is explained in
various ways, but the most generally ex¬
pressed opinion is that large numbers of cars
of all types have been laid up for months past,
out of repair, and no effort apparently on the
part of the railroads being made to put them
in commission, though it is said considerably
increased orders for general supplies and
equipment indicate that something is to be
done.
Lake coal trade continues very light though
ore shipments are reported as exceptionally
heavy — another explanation of car scarcity.
Heavy rains over the water sheds the past
week placed the Ohio river at a coal shipping
stage, the first time in months, and the river
shipping coal companies started something
over a million bushels of coal toward southern
markets last Sunday and Monday on the crest
of the rise.
The Monongahela River Consolidated Coal
& Coke Company started a fleet composed
of the towboats Tom Dodsworth, Charlie
Brown and Harry Brown, with thirty-five
barges of coal, ten steel barges and fifteen
fuel boats, which carried approximately 750,000
bushels of coal. The Diamond Coal & Coke
Company started the towboat A. R. Budd
with seventeen barges of coal, amounting to
about 255,000 bushels.
A barge in tow of the towboat Volcano of
the Diamond Coal & Coke Company was
swept against the wall of Lock No. 5 at
Brownsville, Pa., and 7,000 bushels of coal
were lost last Friday, a fleet of eleven barges
being towed by the steamer at that time.
The Monongahela river rose about one foot
an hour at Brownsville. These fleets have
met with much trouble since their departure
from the Pittsburgh harbor. Only the fact
that the wickets were down, due to the high
water in the Ohio river, saved the towboat
A. R. Budd from damage or destruction Sun¬
day afternoon, when it was swept over three
dams, with its tow of ten barges and two
flats of coal, after becoming helpless through
the breaking of its wheelshaft. As it was,
extreme difficulty was encountered by three
other towboats, the Iron City, Sam Barnum
and Twilight, who joined in a thrilling race
from Pittsburgh harbor to Sewickley to save
the helpless craft.
Several tows of coal sent out of this harbor
on the present rise have been forced to tie
up at Dam No. 14, near Woodlawn, where the
pass is now too narrow to permit the tows to
pass through, according to reports reaching
here today. Officials of the transportation de¬
partments of the shipping coal companies here,
together with Government officials, started im¬
mediately for No. 14. The channel here is
now available only near the lock wall on the
Ohio shore, the abutment, weir and bear traps
being surrounded by cofferdams. It is pos¬
sible that the trouble may be remedied before
the rise passes, as heavy rains over the water¬
sheds of the Allegheny checked the falling of
the rivers.
Many rumors have been current for two
weeks past coupling the name of the Pitts¬
burgh Coal Company with the Midvale Steel
and Bethlehem Steel Company, implying that
the coal interests would be controlled by the
new steel organization. These reports seem
to have no reliable source, and a call at the
offices of the coal company resulted in the
statement that if such movement was contem¬
plated or under way, they had absolutely no
knowledge of it, and that if any stock transac¬
tions to that end were being manipulated they
were not aware of the circumstances. To ac¬
complish anything of this kind would mean the
absorption of a very large amount of Pitts¬
burgh coal stock, by any syndicate or inter¬
ests that would be interested, and while no
one seems to be in a position to affirm or
deny rumors, they are given little credence in
coal circles. Other coal interests have also
been mentioned in connection with the new
steel organization, but the location of their
holdings precludes the possibility of such a
consummation.
The coke market continues to show increas¬
ing strength, though no new figures have been
advanced as yet on 1915. Reports are plenti¬
ful that additional furnaces, both east and west,
are to be blown in soon, but no definite action
seems to be taken, though some new inquiry
for furnace coke is out. Operators have
cleaned up all surplus or accumulated coke
that has been on hand, and the same labor
and car troubles that apply to coal will have
a tendency to continue to stiffen coke prices.
One producer informs us that last week only
a trifle over one-half of their car demand was
met by certain railroads.
Personal and News Items.
The plant of the Echard Coal & Coke Com¬
pany, at Star Junction, near Connellsville, has
been put in operation after having been idle
for about two years.
John M. Jamison, president of the Jamison
Coal & Coke Company, who has been spending
several weeks in France in the interests of
his company, returned home on Thursday of
last week.
The Central Fairmont Coal Company of
West Virginia has just closed a yearly con¬
tract with a railroad company for the latter’s
entire requirements of coal and is now hiring
about 100 additional miners.
'File coal operations in the Hilliard district,
Butler county. Pa., is improving over the
summer months, a number of good contracts
having been secured during the past several
weeks, and present possibilities are that more
miners will be employed in this district during
the winter season than ever before.
The Bannock Coal Company of Bellaire,
Ohio, has incorporated with a capital stock
of $75,000. The incorporators are A. J. Mor¬
gan, W. J. Morgan, Herbert McVay, Alma
Dittrich and Fred Spriggs. The company has
leased a number of acres of coal at Bannock
on the Cleveland, Lorain and Wheeling divi¬
sion of the B. & O. and work of mining coal
will start in a few weeks. The principal
owner is A. J. Morgan of this city, proprietor
of the Edgehill mine.
Indianapolis Trade.
Indianapolis, Ind., October 7. — {Special Cor¬
respondence.) — The demand for domestic coal
in Indiana is very good but the demand for
steam is poor. The retailers here advanced the
price of all domestic coal 25 cents a ton. Steam
coal is selling at summer prices and very little
more is being moved than was the case sev¬
eral weeks ago.
Operators say that the trade in steam coal
is very disappointing. They had anticipated
better business by this time of the year, but it
has failed to materialize. The stories they tell
about the movement of steam coal do not tally
with the big reports of prosperity in the east¬
ern markets where there is a bulge in busi¬
ness because of the war orders. There are a
few factories in Indiana with war orders but
it appears that they are not sufficient to bring
the demand for steam coal up to normal.
The demand for domestic coal, however, is
as good or better than it was at this time a
year ago. All of the operating companies are
busy filling their orders for domestic. There
is the usual amount of free coal on the mar¬
ket but the prices are steady, being about the
same as they were this time last year. Best
No. 4 domestic is selling as high as $1.65 a ton
at the mines. Other grades range from $1.40 a
ton at the mines to $1.50 and $1.60. The
demand for screenings is a disappointment.
Some No. 4 screenings are selling around sev¬
enty cents a ton at the mines, with Nos. 5
and 6 about ten cents lower. Some very, in¬
ferior grades of screenings have been sold on
the open market lately as low as forty cents a
ton.
Inch and a quarter steam lump is weak. In
fact all broken coal is weak. Operators say,
however, that the outlook for all lines is im¬
proving and that business is bound to im¬
prove within a short time. The retailers here
are having difficulty in getting Pocahontas and
other eastern coals and the indications are
that there will be further advances soon in
these grades.
The wholesalers in Indiana are offering coal
at the following prices:
F. O. B. F. O. B.
Indiana — Mines. Indianapolis.
Mine run. No. 4 . $1.10@1.20 $1.6001.60
Mine run Nos. 5 and 6 . 1,0.1©1.1.1 1..’)5©1.6.‘5
Nut . 1.20@1.30 1.70©!. 80
Kgg . 1.30@1.40 1.80©1.9n
I’/J-inch steam lump . 1.25@1.35 l.TSOl.S.l
No. 4 screenings . 70© .75 1.20@1.25
Nos. 5 and 6 screenings . 55© .65 1.05©1.15
2H-inch domestic No. 4 . 1.50©1.55 2.00©2.n5
No. 4 domestic . 1.60@1.65 2.10©2.15
Nos. 5 and 6 domestic . 1.40©1.60 1.90©2.in
Brazil block domestic . 2.25@2.50 2.73@2.50
No. 1 washed coal . 1.75 2.25
No. 2 washed coal . . 1.05 2.15
Southern Indiana Field —
No. 5 mine run . 1.05@1.10 .
Domestic lump . 1.40©1.50 .
The Indianapolis retail dealers this week posted the
following schedule of prices:
Per Ton.
I-inton No. 4 forked . $3.25
Indiana lump forked . S.nn
Indiana lump and egg, screened . 2.75
Kanawha lump, forked . 4.2,5
Ohio Hocking, lump . 4.25
Ohio Hocking, washed egg . 4.50
Kentucky lump . 4.50
Ohio Jackson lump, forked . 5.00
Blosshurg smithing . 5.50
Cannel lump . 6,00
Pocahontas forked lump . 6.00
Pocahontas shoveled lump . 5.50
Pocahontas mine run . 4,50
Pocahontas, nut and slack . 3.75
.\nthracite, chestnut . 8.25
Anthracite, stove and egg . 8.00
Anthracite, grate . 7.75
Connellsville coke . 6.00
Indianapolis by-product coke, egg and nut . 6.00
Pea coke . 5. 00
EXTRA DELIVERY CHARGE.
Bags, 50c a ton extra, ground floor or dumped in
cellar.
Bags, 75c a ton extra, carried into cellar.
Charge for chute or wheelbarrow, 25c a ton.
Coke, bags, COc; bags in cellar, 80c.
Omaha Trade.
Omaha, Neb., October 7th. — (Special Corre¬
spondence.) — There is not very much demand for
coal this week, the condition undoubtedly result¬
ing from the rush to get in ahead of the advance
in freight rates the latter part of September. It
is clear and warm, which has had the effect of
easing up the demand for steam coal.
General business conditions are slightly im¬
proved on account of weather conditions being
favorable for the corn crop.
The following market prices prevail :
Mines
Omaha
Southern Kansas —
Nut .
$2.00
$3.45
Slack .
1.35
2.80
Franklin County —
Lump .
. 1.60© 1.75
4. 10© 1.25
Egg .
. 1. 60© 1.75
4.10@4.25
Nut .
. I.60@1.75
4,10@4.25
Williamson County —
T.ump .
3.95@4.10
Egg .
. 1.45@1.60
3.95 ©4. 10
Rock Springs —
Lump .
2.10
5.8.5
Nut .
1.60
5.35
Arkansas Anthracite —
Lump .
3.70
6,60
Broken sizes .
3.95
0.85
Routt County, Colo. —
Lump .
3.00
6.75
Nut .
2.25
6.00
Pea .
1.25
5.00
Walsenburg District, Colo. —
lump .
3.00
6.75
Nut .
2.25
6.00
Pea .
1.25
5.00
THE BLACK DIAMOND
[October 9
296
Cincinnati Trade.
The Demand for All Domestic Coals Is
Stronger But the Steam Trade
Is Easy.
Cincinnati, Ohio, Octolier 7th. — (St’cciol Cor-
vcspoudcticc .) — The week hus seen the fuel situa-
tion heconiing brighter with improving prices and
better demand. The car situation, however, is
becomiag very tight in some districts. 1'he lalior
situation has united with the car situation to
hold production down. There is just enough
working force to supply the labor to till the cars
allotted in a run of half to three- fourths day, all
week, or three and four days, all day, in the
week. . ^ .
The smokeless situation is fair and satisfying
to the operators, the only change being an ad¬
vance ill the schedule of prices for October, of
Pocahontas and New River slack to $I.15. The
September price was $l and it was believed that
the October price would remain at that figure.
The list holds fairly well but a little degression
was reported from outside tbe city, in whicb
it was charged that lump and egg had been shaded
in price by a prominent producing firm. How¬
ever that may be, the shading was not general
and the firm reports that there is no foundation
for the suspicion. There is a disposition, on
the other hand, to advance prices all around after
October 1.), by tbe smokeless producers.
The splint producers of the better .grade of coal
are talking of an advance on and after October
lOtb. 'I'he splint situation would be very much
more satisfactory were it not for a few jobbers
who are after the brokerage only.
West Vir.ginia operators are having more
trouble to bold the market steady, than are the
Kentucky operators. Tn some of the West Vir¬
ginia fields it is found that the quotations of $1.40
and $1..")() for lump are still in force. Tn Ken¬
tucky the situation is so much liettcr that the
quotations look really well in print. Along the
1.. &• N. Railway, block for October, when it can
be had, is generally sold at $;i in all the high
grade coals. Washed e.gg is quoted at $l.7.'>:
washed nut, $1.60; washed nut and slack, spot,
eighty and eighty-five cents, but most of it
is under contract at these prices. All high grade
coals are brin.ging these prices without trouble
this week, principally because most of the block
and egg is sold up to about December 1,7. The
demand for slack is loosening more and more
block and egg. Tn the Tdarlan and Hazard dis¬
tricts the followin.g prices obtain, this week :
Pdock, .$1.7.") to $1.00; egg, $1..)0; nut and slack,
spot, seventy cents. The tendency in these dis¬
tricts is to advance next week from five to ten
cents per ton all around.
Tn West Virginia, Fairmont coaT is quoted
as follows: lk2-inch lump, $1.40; mine run, $1 ;
nut and slack sold up. Hillers Creek coal is
([noted : Four-inch block, $2.3.7 for October ;
li^-inch. $2.20; egg, $1.!).7; nut, $1.60; and nut
and slack, eighty cents. These quotations
are rejiresentative quotations for most of the
fields, the Logan county product being about as
([noted last week. These quotations are all f.
o. I). the mines.
Cincinnati Trade News.
The TTamilton, Ohio, waterworks contract has
lieen awarded to the Reliance Coal & Coke Com-
[lany, the jirice bein.g $1.84 per ton for nut and
slack, delivered. The tonnage is around 11,000
tons and the conditions entered into, are a per¬
centage of seven in ash and a R. T. U. of 1.3, .700,
under value to be penalized and overvalue to be
awarded a [iremium. There were but six bids,
the Reliance Coal Company being the only out¬
side bidder, tbe others being local concerns.
Ca()tain W. S. Howell, formerly treasurer of
tbe Halmar Coal Mining Company, is very much
worried about bis son, W. Lyle Howell, a chemist
in the government offices at New Orleans. Cap¬
tain Howell has been tryin.g for ten days to get
into communication with his son, or some friend
of his, in New Orleans, but all his efforts have
been futile. He fears that perhaps he might
have Iteen on the street during the storm, which
carried Ca[)tain Henges to his death, and may
have been killed or severely injured.
The Seco mines of the Middle West Coal Com¬
pany have just started shi()ment of [iroduct. hav¬
ing opened with the latest and most modern equip¬
ment, loading booms and other labor savers
being included. Fhe mines are at Seco, and are
mana.ged by the subsidiary company, the South
Eastern Coal Company, from which the mines
and the town take their name. The coal is a fine
gas and coking [iroduct and is gaining a reputa¬
tion in those lines. It was the aim of the
company to .get started October 1st, but little
had been done on that date but cutting out
some coal for loading.
The Campbell's Creek Coal Company, J. T.
Hatfield Company, and the Otto Marinet Com¬
pany have been busy this week towing down coal
from the Kanawha river district on the present
rise in the Kanawha extending to the lower Ohio.
The river companies have a large stored pro¬
duction which would carry them a long way
into the winter were there no other rise in the
river for some weeks. Fhe storm, at New Or¬
leans, however, greatly depleted the stores of
coal there, many bar.ges going down and some¬
thing over $1,500, 000 loss being sustained by the
great river companies. Tt is the plan of the
Pittsburgh and Kanawha companies to restore
the supply in that port, if possible, before the
rivers close to navigation this winter. The Louis¬
ville supply is to lie replenished, also, much of
the [iroduct there having been distributed.
Cleveland Trade.
Cleveland, Ohio, October 7. — (Special Corre¬
spondence.) — The shortage of cars on the various
railroads between this city and the coal fields
has resulted in lightening up the market quite
[lerceptibly. It is doubtful whether there has
been a real change in the demand for any of
the steam coals for the past two weeks, but
possibly there is not so much stock in the market
and this, of course, has its effect on prices, which
show more firmness than for some time past.
There is no tendency upon the part of lake
shii)pers to rush their output into the northwest¬
ern market, although reports indicate that the
receijits up to this time are far short of what
might be considered normal. However, coal is
coming forward to the loading ports in about
the same volume as for the [last several weeks.
There may be some little trouble in securing
boats, but complaints are few and far between.
Local jobbers are complaining of a rather se¬
vere car .shortage on all roads reaching this city.
This was predicted some time ago, and from
(irsopects at present little im[)rovement may be
expected until the demand from grain shippers
subsides quite materially. Steel and iron products
are making demands on some of the roads also.
The greater activity of the railroads, however,
may be expected to produce an increase in the
consumption of railroad fuel, and this offers
some compensation.
With the exception of slack, no change has
been noted in the demand for No. 8 coal within
the past week or two. Slack, however, has shown
considerable strength. Quotations are as follows :
F. (1. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-ouarters . $1.00 $1.90
Run of mine . .90 1.80
Slack . .80 l.TO
But little Pittsliurgh slack is now coming into
the market, and practically none of the larger
sizes is seen. The demand from the lake and
the east is taking up the car supply. Slack prices
have stiffened materially.
F. O. B. F. O. B.
Pittsburgh District — Mines. Cleveland.
-Slack . $0.70 $1.70
Youghiogheny slack is very firm at eighty cents
at the mines and is scarce in this market.
The demand for Pocahontas coal has continued
to increase with the advance of the season, and
as a result of the cool weather which has pre¬
vailed for several days. Prices, however, are not
far different from the figures given some time
ago.
F. o. B. F. O. B.
Smokeless — Mines. Cleveland.
1-ump . $2.25 $3.70
Kgg . 2.25 3.70
Run of mine . 1.40 l.-^O
Massillon coal has been in heavy demand, both
because of the anxiety of dealers for additional
supplies and the scarcity of cars;
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2. .70 $,3.20
Nut . 2.50 3.20
Slack . .80 l..-)0
Go.shen coal has enjoyed a demand proportion¬
ate to that of other fuels, with an increase in
the price of slack from $1.50 to $1.60 f. o. h. city.
Quotations on Cambridge coal showed an in¬
crease on all the sizes ;
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Tliree-(|uarters . $1.05 $1.9.5
Run of mine . .05 1.85
Slack . -80 1.70
But little Fairmont slack is finding its way into
this market at the present time, because of the de¬
mand from the east. Quotations were firm the
past week at sixty-five to seventy cents at the
mines, or $1.70 to $1.85 on track here.
Anthracite coal showed considerable of a
scarcity the past week, with an increased de¬
mand. It is probable that the producers will have
all they can do to take care of the late business,
if retailers in other sections have delayed plac¬
ing their orders as they have in the northern part
of this state.
Twin Cities Trade.
-Minneapolis and St. Paul, October 7. — (Spe¬
cial Correspondence.) — Drizzling rain in the
northwest for a week or more, acompanied by
cbilly weather has started nearly every stove and
furnace to working, with the result that business
with both shippers and retailers is very good. In
the Twin Cities the demand commencetl very sud¬
denly, and many of the dealers were obliged to
go into the market for extra teams and teamsters
in order to make deliveries promptly. On the
other hand the shipping companies have been
able to supply a lar.ge amount of coal promptly,
Itecause the car supply has been good at the
docks and at the mines, and have given good
service to all their customers.
Various influences are at work which are
strengthening the market on dock soft coals and
in some quarters, if there is a real old-fashioned
w'inter, the fear is entertained there may not be
sufficient coal to meet the demand. The open
rate on vessels for soft and hard coal loading
at Lake' Erie ports has strengthened perceptibly.
East bound ore is competing for vessel tonnage,
in order to accumulate sufficient ore tonnage to
meet the requirements of the steel companies.
Vessels not bound by season charters in some
instances are returning up the lakes light, on
account of the higher rate they can obtain for
ore loadin.g as compared with west bound coal.
Tt now looks as if the forwardings of coal the
latter part of the season would be less than
expectation due to this condition in the carry¬
ing trade, and as a result, the shipping companies
are holding for a steadier price basis on their
product, and are willing to permit highly com¬
petitive business to .go to the “other fellow.”
This same influence is extending to the steam
trade in the Twin Cities, making the market
much steadier and confining quotations to nar¬
rower limits.
Collections in the northw'est are uniformly re¬
ported slow. On account of the downward
tendency of grain, farmers are not marketiiLg
their crop, but are waiting, hoping the market will
strengthen, the consequence being that they are
not as able to meet their obligations as they
usually are at this season of the year. On ac¬
count of the crop bein.g held back, however, trans¬
portation companies are better able to handle
the volume of other business coming to them,
and so far there have been no transportation
troubles.
Current prices on coal of all grades sold in the
Twin Cities are as follows;
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
ancl and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.86 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 6.50 6.70
Buckwheat . 4.00 5.20
BITUMINOUS.
Splint, screened lump and stove.$3.30(®3.40
Splint, dock run . 3.10
Hocking, screened lump and stove 3.30@3.40
Hocking, dock run . 3.00
Youghiogheny, gas, lump and stove 3.30(®3.40
Youghiogheny, gas, dock run . 3.10
Pittsburgh vein, lump . 3.30@3.40
Pittsburgh vein, dock run . . . 3.00
Poc.ihontis, screened lump or egg 4.75
Pocahontas, screened lump and
egg mixed. . . . 4.50
Pocahontas, mine run . 3.25
Cannel, lump . 5.25
Smithing, bulk . 4.25
Smithing, in 100-lb. sacks . 6.00
Briquets, anthracite . 5.00
Briquets, smokeless . 5.00
$4.26(34.36
4.06
4.26@4.36
3.90
4.26@4.36
4.06
4.26@4.36
3.96
5.71
5.46
4.21
6.21
5.21
6.96
5.96
5.96
Tn the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows:
Southern Illinois chunks . $1.65@1.75 $3.95@4.05
Southern Illinois egg . 1.65@1.75 3.95@4.05
Southern Illinois No. 1 nut . I.(i5@1.75 3.95@4,0.)
Southern Illinois No. 2 nut . 1.25@1,40 3.55(®3.70
Southern Illinois No. 3 nut . 1.10(3)1.25 3.40^3.a5
Southern Illinois run of mine... 1.15@1.25 3.45(33,55
Southern Illinois 2-in. screenings .00(3 .70 3.00(3)4.00
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
No. 15]
THE BLACK DIAMOND
297
St. Louis Trade.
St. Louis, Mo., October 7. — (Special Corres¬
pondence.) — In spite of the fact that dealers
throughout the country have been stocking
heavily the last ten days in September owing
to the advanced freight rate, there seems to be
no let-up in buying on the first of October.
On the other hand in order to discount the ad¬
vance in freight rate operators did not ad¬
vance their prices as much on the first of
October as is the general rule at this time of
year.
The Franklin county price remains station¬
ary and a number of other coals in sympathy,
either remained the same or advanced only
very slightly. It has been, the general hahit
in the past to advance prices about twenty-
five cents a ton on October the first. How¬
ever, business has been coming in a very
^pleasing manner, and an ad\'ance can be looked
for about the middle of the month. All the
operators report an unusually good run of
domestic business, orders for domestic lump
are considerably outrunning the supply, and
nearly «very one is behind in their orders.
Egg is also moving better, and nearly every
one is looking for the best October we have
had in several years.
One of the most pleasing facts is that the
steam sizes seem to be holding up remarkably
well, which is undoubtedly a sign that indus¬
trial activity is much greater than at this time
last year. The movement of lump is better
than it was at this time last year. The car
supply is absolutely full on every road. Con¬
sequently the tonnage of steam sizes is greater
than at this time last year. Notwithstanding
this fact they are being absorbed a great deal
more readily, and it is the general opinion that
the bottom has now been reached.
Standard coals are moving well. Prices were
advanced considerably on October first. Cur¬
rent prices as follows:
F. O. B.
Standard Coal Mine.
6-inch lump . $1.30
6x3-inch egg . 1.2.1
2-inch lump . 1.05
Steam egg . 90
No. 1 nut . 1.15
No. 2 nut . 80
Mine run . 86
Screenings . 40
F. O. B.
St. Louis.
$1.87;^
1.82
1.62 54
1.47!4
1.72/2
1.37/
1.42/
.97/
Williamson county coals are moving well,
on both steam and domestic sizes. Prices
on the whole remain about the same. The
operators find themselves in a stronger posi¬
tion than they were ten days ago. They have
more orders on hand:
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . 1.60@1.75 2.22^@2.4754
3x2-inch nut . 1.50@1.75 2.32i4@2.47H
Screenings . .50 1.22J4
Franklin county coals are moving exceed¬
ingly well. Operators are from a month to
three weeks behind on orders. Egg and nut
orders are not quite as numerous as lump, but
keep considerably ahead of the production:
F. O. B.
Mine
6-inch lump, egg or nut . $1.75
No. 2 stove . 1.40
Screenings . 60
F. O. B.
St. Louis.
$2.47/
2.12/
1.32/
Anthracite is in excellent demand, especially
chestnut:
Anthracite — F. O. B. St. Louis.
Chestnut . $7.55
Stove or egg . 7.30
Grate . 7.05
Mine St. Louis.
Smokeless— F. O. B. F. O. B.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.26
By-product coke (all sizes) . 4.50
The prices on Illinois soft coal, f. o. b. East St. Louis,
Madison, Venice or Granite City, III., are 20 cents lower
than the above quoted St. Louis prices.
Detroit Trade.
Detroit, Mich., October 7. — (Special Corre¬
spondence.) — Moderate activity is still a pleasing
feature of the Detroit market for steam coal,
with demand strongest for the fine sizes. Sales
are principally for small amounts, though collec¬
tively they represent quite a satisfactory tonnage
rather well distributed.
Activity of manufacturing and industrial es¬
tablishments, which is now, in most instances,
well maintained, appears to be creating a steady
consumption, while improvement is also report¬
ed in the matter of demand from interior towns
of the state.
Inquiry for domestic sizes is developing to. a
larger volume and retail dealers are handling an
increasing number of orders, but the business
has not yet arrived at a point where shippers
are benefiting materially. Chill temperature at
present, with the prospect of colder weather
the latter part of the week, lends an encouraging
aspect to the situation.
Though not productive of the disturbing con¬
ditions which prevailed earlier in the season,
when prices were almost wholly unsettled, con¬
signment stock is still present in the market in
considerable quantities. It appears, however, to
be more readily cleared away and opportuni¬
ties of obtaining coal at reduced prices are said
to be infrequent.
Full winter prices are now effective on anthra¬
cite delivered to domestic consumers, the retail
dealers’ prices having been advanced October 1
to $8 a ton on stove and egg sizes and $8.2.5
a ton on chestnut. Distribution of the season’s
supply is going forward steadily, but has not
brought any considerable volume of business to
shippers. Reports of car shortage in the east
are causing anxiety to some.
Prices in the local market
on mine
shipment
orders are as follows:
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
I'hree-quarter lump .
$1.0(1
$2.40
Mine run .
.90
2.30
Slack .
.()0@ .75
2.00(g2.]3
West Virginia Splint — ■
Four-inch lump .
1.50@1.75
1.90@2.1.5
Two-inch lump .
1.25(®1.40
2.15(32.30
Three-quarter .
1.00
2.40
Mine run .
.90
2.30
Nut, pea and slack .
.55@ .65
1.96@3.05
Smokeless —
Lump and egg .
2.25
3.85
Nut .
1.75
3.35
Slack .
Open
Open
Mine run .
1.40
3.00
Kentucky Splint —
Lump .
1.60@1.75
3.00@3.15
Egg .
1.25@1.40
2.65@2.80
Nut, pea and slack .
.65
2.05
Fairmount —
Three-quarter steam lump .
.85@ .95
2.25(g2.36
Mine run .
.70@ .80
2.10@2.20
Slack .
Open
Open
Hocking Valley —
Shaker three-inch lump .
1.50
2.65
Shaker egg and nut .
1.15
2.30
Domestic lump .
1.40
2.65
Three-quarter lump .
1.25(gl.30
2.40@2.45
Mine run .
1.00@1.10
2.15(®2.25
Nut, pea and slack .
Open
Open
Pittsburgh No. 8 — •
Three-quarter lump .
1.15
2.30
Mine run .
1.05
2.20
Slack .
Open
Open
Jackson Hill —
Domestic lump .
2.60
3.65
Cambridge — -
Three-quarter lump .
1.20
2.35
Mine run .
1.10
2.25
Pomeroy —
Two and three-inch lump .
1.60
2.75
Egg .
1.35
2.50
Slack .
Open
Open
Louisville Market.
Louisville, October 7th. — (Special Correspond¬
ence.) — A sudden tightening up of car supply
has been manifest in this section during the past
week. That is, there has been acute shortage on
the Southern Railway and the Middlesboro Dis¬
trict for some weeks past. During the past week,
however, the Louisville & Nashville Railroad fell
down badly in car supply, some of its mines bein.g
idle for lack of empties on two and one-half out
of the six working days of the week.
While demand for neither domestic nor steam
coal is especially heavy at this time, the car situa¬
tion is naturally inducing higher prices, and nfak-
ing operators wary of entering into long term
contracts at low figures. It is felt that with the
advent of real winter weather, necessitating the
general use of coal for heating purposes that
there will be a flurry of belated buying that will
be hard to satisfy.
One of the principal matters of interest to the
coal trade in this section at the present time is
the freight rate battle among the Ohio, Pennsyl¬
vania, and West Virginia operators and railroads,
the outcome of which will vitally effect the future
of eastern Kentucky coals, particularly steam and
gas coals, in the markets of Ohio, Michigan and
Indiana. When this matter was first broached
to eastern Kentucky operators and they were
given to understand that the only question in¬
volved was a widening of the differential in
favor of the Ohio mines, there was little con¬
cern felt over thq situation, but as soon as it
became apparent that the Pittsburgh, Fairmont
and Piedmont Districts were to secure a favor¬
able differential, it was at' once reco.gnized that
this would enable these Ohio and Pennsylvania
mines to sweep away the markets that eastern
Kentucky coals have been developing principally
during the last two or three years, and that such
adjustment would he a set-back which the Ken¬
tucky industry would be long in recovering from.
For the past several years eastern Kentucky
mines having an outlet via the Louisville and
Nashville or Southern Railway into southern and
southeastern territory have been under pressure
of competition from mines in the western corner
of Virginia. Th6 recently developed tonna.ge of
the Clinchfield Mining Corporation and other
large producers in the “Pocket Section’’ of Vir¬
ginia, with their high quality of steam coal and
low producing cost, havin.g made life very hard
for the operators of the Coal Creek, Jellico and
Pineville sections.
It is the fervent hope of eastern Kentucky
operators that the Louisville and Nashville Rail¬
road, which apparently is the only one of the
railroads involved which has no special interest
to serve other than the welfare of its stock¬
holders and its operators, will decline to par¬
ticipate in the adjustment, in which event, there
seems to be hope that the publication of the
tariff will not be made by the West Virginia
carriers, and that the controversy will be kept
out of the hands of the Interstate Commerce
Commission, at least temporarily.
Prices on domestic block coal for October
shipment range all the way from $1.50 to $2.25 a
ton with a similar variation for nut, egg and
lump sizes. Nut and slack coal of high .grade
is selling from forty to sixty cents f. o. b. mines
with low grade coals selling from twenty-five
cents a ton down to nothing. In view of the
severity of car shortage within the past week,
however, it is thought that surplus accumulation
of screenings will be quickly cleaned up and that
it will not be necessary to sacrifice these grades
further, at least until car supply becomes more
nearly normal.
Birmingham Trade.
Birmingh.\m, Ala., October 7. — The fall
months have brought better demand for domes¬
tic coal. The operator is in better spirits be¬
cause the yard men are placing orders. The
yard man rejoices because the consumer is need¬
ing coal and he is filling long-delayed orders.
Prices are good and most of mines are running
very nearly on full time. Several domestic mines
are receiving all the orders they can fill ; with
others the demand is not so brisk.
Steam coal trade is not so good as the domes¬
tic demand. Bunker trade to New Orleans, Mo¬
bile and Pensacola has been held up for a few
days on account of the hurricane. The loss in
coal has been enormous. It is reported that
one New Orleans firm in getting most of its
steam coal from Pennsylvania, down the Ohio
and Mississippi rivers, lost about 800,000 tons
which was on barges. For several days, all the
railroads to these gulf ports were out of busi¬
ness because of being inundated. The Louisville
& Na.shville Railroad is again ready for business
and shipments of coal will go forward by this
road.
The De Bardeleben Coal Company was the
only company not losing its barged coal. This
company saved about 1,100 tons. It is estimated
that the New Orleans Coal Company’s losses
were close to a million and a half dollars. Much
of this large tonnage of steam coal lost will be
supplied from Alabama because of quicker fa¬
cilities, both as to railroads and Warrior river
transportation.
Coke is in fairly good demand, with many in¬
quiries coming in for smelter coke, some of
which, if placed, will be of large volume. Trade
in foundry coke is only fair and companies mak¬
ing this class of coke could supply a large de¬
mand. Price is fairly good, ranging from $.3 to
$3.25 f. o. b. cars at point of shipment.
F. O. B.
F. O. B.
Ribb County Domestic Coal —
Mines.
Birmingham.
Red ash Cahaba lump .
$3.00
$3,30
Red ash Cahaba lump .
2.75
3.10
Red Ash steam size .
. . 1.20®1.35
Frt. rate 30c
Jefferson County —
Fancy steam Pratt .
1.75
2.00
Run of mine Pratt .
. 1.20 01.25
1.4501.50
Mary Lee lump .
. 1.4001.50
1.80 01.90
Black Creek —
Fancy steam lump .
1.75
2.05
Washed nut .
1.75
2.05
Washeu Steam . 1.35@1.60 Frt. rate 30c
Mine run . 1.35@1.40 Frt. rate 30c
Jefferson Steam Coal —
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic —
Carbon TIill lump . 1.7.5 2.15
Carbon Hill egc; . 1.65 2,0.5
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . 1.00 2.35
Steam sizes . . . • • • 1.25@1,35 Frt. rate 40c
Sbelbv Gounty Domestic Coal —
('ahaba fancy lump . 3,0.Q . , , 3 30
Cahaba No. 2 lump . ^ 2,75 3 05
Monievallo domestic prices ranging frotm $3.lWDt'p
Rlacksmith coal, washed and screened.- .per tOTT... $aiito
$2.25 at mines, with different rates to v^Hous points.^,
298
THE BLACK DIAMOND
[October 9
New York Trade.
Anthracite So Much Improved Operators
Work Full — Bituminous
Stronger.
Office of The Black Diamond,
New York, October 7.
This week finds the general anthracite coal
trade in good condition. Many producers are
working their mines on full time, and judging
from the number of orders on hand and the
live inquiries coming for tonnage, they anticipate
no trouble in working full time throughout the
present month. This is interesting in view of the
fact that many of the mines worked on short time
in September, and as the result produced con¬
siderably less coal than during September, 1914.
The weather conditions last week were very
favorable towards anthracite buying, and the re¬
sponse that came from the consumers was so
very large in all directions as to be reflected very
favorably on the wholesale trade.
This week finds the >all-rail trade most active,
with a very heavy demand from this trade for
chestnut coal. It is said that certain producers
have all the chestnut that they can mine taken
care of by contracts and new orders, so that
this size will not be pressing for sale in the near
future. Stove coal is of course moving very
freely, as this has been the most favored size
throughout the summer. Egg is the least active,
although this size is not in as free offering as
formerly, and what concessions one hears of, are
usually very small.
There is a better demand for coal for lake
shipment, with shippers findin.g the vessel situa¬
tion tightening up considerably due to the large
number of American vessels on the lakes that
are now eagaged in transporting grain for Ca¬
nadian destinations. Many of the Canadian ships
were taken through the Welland canal during the
early part of the year, to engage in the Atlantic
trade, and this brought about such a shortage of
vessels recently that the Canadian government
issued an order permitting American owned ves¬
sels to take grain from Canadian ports to Ca¬
nadian ports. This has brought about a shortage
of vessels for coal charter.
New York harbor trade is more active, and
surplus stocks of the prepared sizes are greatly
diminished as compared with several weeks ago.
Less individual coal is offering than formerly,
and in most instances, individuals are getting their
prices up to circular or very near to it. Where
one formerly heard of concessions of from thirty
to fifty cents a ton, they now range from ten to
twenty cents.
As winter approaches, the supplies of steam
sizes begin to diminish, that is for spot sale, and
certain large consumers of the rice and buck¬
wheat sizes especially, are not finding them offer¬
ing so freely as formerly, especially at reduced
prices. Choice grades of all three of the steam
sizes are practically out of the market as these
are largely taken upon contract. Medium grades
are not so plentiful, while inferior coals are also
lacking in abundance. Where one formerly heard
of rice coal selliag at $1.80 to $2, some of the
inferior coals cannot be purchased now under
$2.05 and barley coal ranges from $1.75 up, and
No. 1 buckwheat at $2.40 up. Pea coal is now in
very short supply, and about the cheapest one
hears at the lower ports is $3.15 to $3.25 per ton.
I'he full circular prices are being obtained at all
of the upper ports on all of the choice grades.
New York prices:
Upper Lower
„ , Ports. Ports.
Broken . $.5.10 $5.00
Egg . 5.35 5.25
Stove . 5.35 5.25
Chestnut . 5.60 5.50
Pea . 3.55 3.45
Special grades of red ash and other high grade
coals at the lower ports sell at twenty-five to
fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows :
Egg .
Stove
Nut .
Pea
Buck
Rice
Barley
io.Oo and up
5.20 and up
5.20 and up
3.25 and un
2.25 and up
2.00 and up
2.65 and up
The Bituminous Situation.
The eastern bituminous situation has not shown
any material changes during this week. In some
instances car supply is reported as being much
better; on the other hand reports shows that
supplies of cars are insufficient. One operator
will report that he has ample cars for two or
three days, and then they will run short. On
the whole the car supply is believed to be much
improved over last week, but how long this situa¬
tion will last no one cares to predict.
Contract coals are moving very freely, and
most of the producers of the good coals are out
of the market as far as makiag new contracts
are concerned. Reports as to labor show that
it is growing scarcer from week to week. The
iron and steel plants are still attracting a great
deal of labor, as are the coke furnaces, while the
European nations at war are continually calling
on reservists in this country, of whom many
are found in and around the mines. The en¬
trance of Greece and Bulgaria into the European
war activities, will no doubt cause a great many
of the former nationality in this country to
return to their native country if transportation
is provided.
The lack of vessels for taking export cargoes
is becoming acute. This will likely bring about
a serious let-up in the export activity during the
next several months, unless relief comes from
an unexpected source. While a great many cargo
steamers are coming to this country seeking
cargoes, coal shippers have been unable to charter
them, for the reason that their owners anticipate
such fluctuations in ocean freights by the time
the steamer reports at American ports, that grain
or cotton charters may prove more attractive than
coal.
Export shipments for September were consid¬
erably lower than those of August, for the reason
that the vessel supply ran short. Bunkering re¬
quirements are still very heavy, and are taking
a good tonnage of coal at practically all of the
American ports at this time. The closing of the
Panama Canal for a month, will have some in¬
fluence on the bunker trade. This influence will
mean an increase in bunkers, as a great number
of ships who use the canal, will now go around
the Horn in entering the Pacific or through the
Suez Canal, requiring heavier bunkers.
New York harbor ports supplies of unsold coal
are light. One does not hear of so much cheap
coal, and while harbor prices are not in keeping
with mine prices, which advance from five to ten
cents a ton, they are much stronger. This week
medium grades of Pennsylvania coals command
$2.65 to $2.75, with choice grades selling at $2.85.
Slack is strong at seventy to seventy-five cents
at the mines, long rate.
The Vessel Situation.
Coastwise vessel rates are some firmer, though
prices have not advanced. At the moment there
seems to be ample tonnage available for such
business as is offering. It is expected that the
shortage of steamers for export business will
soon bring about a great demand for schooners
for off-shore business that may attract some of
the schooners that are now engaged in coastwise
transportation.
The off-shore vessel situation has grown very
acute, and this situation is fully covered on the
export page of this issue.
We quote current rates for freight as follows;
From Hampton Roads to Boston, eighty to
ninety cents is about the range; to Portland and
points east of Boston, from ninety cents to $1.00.
To sound ports, eighty to eighty-five cents. From
Philadelphia to New England points, about five
cents under the Hampton Roads rates.
From New York to Bridgeport or New Haven,
thirty cents ; to New London and Providence,
forty cents ; to Fall
River and New
Bedford,
forty-five cents ; to
Boston, fifty-five
to sixty
cents.
Current quotations
on bituminous coal in spot
lots are :
F. 0. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Uest grades .
$1.30
Ordinary . .
1.05
Medium grades .
1.15
Cambria County —
Best Miller vein .
. 3.00
1.45
Medium grades .
. 2.70
1.15
Cheaper grades .
. 2.60
1.05
Clearfield County —
Best grade .
1.35
Ordinary grades .
. 2.50
1.00
Indiana County —
Best grade .
1.25
Medium grade .
. 2.55
1.00
Maryland —
Georges Creek big vein.
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
.85
Best Rrs, Ji-inrh lump.
. 2.65
1.10
Best grade, run of mine
. 2.65
.90
Gas slack .
65. @75
New York Trade Briefs.
A. W. Callaway, president of the Davis Coal &
Coke Company, was up from Baltimore on Tues¬
day.
Howard S. Bowns, of Pattison & Bowns, No.
1 Broadway, returned on Tuesday from a Ca¬
nadian hunting and fishing trip.
Frederick E. and Thomas B. Hasler, of Hasler
Brothers, Produce Exchange building, are on a
huntin.g trip up in Maine.
A. W. Hillebrand, of A. W. Hillebrand & Co.,
No. 1 Broadway, returned late last week from a
hunting trip in Canada.
A. L. Dickerman, Jr., of Dickerman & Englis,
No. 42 Broadway, was out of town several days
this week, returnin.g to his desk on Thursday.
J. H. Wheelwright, president of the Consolida¬
tion Coal Company, with headquarters in Balti¬
more, was in the New York offices on Tuesday.
The Seiler-Blanchard Company, of No. 1 Broad¬
way, has moved into much larger quarters on the
ninth floor. This move was necessitated by the
company’s expansion of business.
President E. B. Thomas, of the Lehigh Valley
Coal Company, spent several days in the anthra¬
cite regions last week, inspecting the various op¬
erations of his company.
The Philadelphia & Reading is the first of the
anthracite carrying railroads to announce its an¬
thracite tonnage for September, which was about
895,000 tons, as compared with 1,101,000 in Sep¬
tember, 1914, a decrease of 206,000 tons.
Charles E. Lester, of Hartwell, Lester & Glit¬
ter, Inc., of No. 1 Broadway, who went abroad
some six weeks ago, is writing some interesting
letters to the members of his company from the
European countries that he is visiting.
W. H. Carpenter, of Dexter & Carpenter, No.
12 Broadway, has reached Brazil. Mr. Carpenter
went abroad the latter part of May, and spent
the summer in Europe. He went direct from
France to South America.
Hugh L. Kirby, sales manager of the Vernon
Metal & Produce Company, of No. 90 West
street, has been spending considerable of his time
at his mines in West Vir.ginia during the past
several weeks, working on some large tonnage
propositions.
F. W. Foedisch, of F. W. Foedisch & Com¬
pany, Philadelphia, was calliag on the trade in
New York on Tuesday. Mr. Foedisch’s office in
Philadelphia will be the mecca for out of town
coal men in Philadelphia the latter part of the
week to see the world’s series ball games. For
the past week Mr. Foedisch has been dividing
his time between selling coal and securing base¬
ball tickets for his many out of town friends.
George A. Mcllroy, of Parrish, Phillips & Co.,
of No. 1 Broadway, has the sympathy of his
many friends in the coal trade over the death of
his mother, Mrs. Mary 1. Mcllroy, which oc¬
curred on last Saturday at her home. No. 473
Bramhall avenue, Jersey City. Mrs. Mcllroy,
who had reached the ripe age of ninety years,
had been in very good health until only a few
days before her death.
R. C. Hill, of Madeira, Hill & Co., No. 143
Liberty street, left on Thursday morning of this
week for British Columbia to hunt mountain sheep.
Mr. Hill will be accompanied by Mr. Henry P.
Davison, of J. P. Morgan & Company, who is
also very fond of hunting. Mr. Hill and Mr.
Davison have been very close friends for many
years, and there is no financial significance to be
attached to their present expedition.
Circulars have been received by the New York
coal trade here from the receivers of the Four
States Coal & Coke Company, Pittsburgh, Pa.,
Under date of October 1st, announcing that they
have appointed Messrs. B. Nicoll & Company of
New York as exclusive eastern sales agents for
the coal pioduced by the Annabelle mine of that
company in the Fairmont regions of West Vir¬
ginia. This is one of the most modern mines
in the gas coal fields of West Vir.ginia, and its
product is well known throughout the east.
W. S. Kies, head of the foreign trade depart¬
ment of the National City Bank, who has directed
the organization of numerous branch banks in
South America for this large financial institution
during the past year, was recently elected one of
the vice-presidents of the institution. Mr. Kies
since taking up the position of head of the for¬
eign department of the National City has come
in contact with many coal men, and the news of
his advancement is of course very welcome to
them.
No. 15]
THE BLACK DIAMOND
299
Philadelphia Trade.
Cars Are Scarce, Deliveries Are Slow and
the Demand for Steam Coal
Is Better.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, October 6.
Car supply has been the keystone of condi¬
tions that has at last proved out the hopes of
the coal men of this section that prices were
due and bound to rise. The shortage in vari¬
ous of the districts shipping bituminous coal
to this city as a tidewater point, has become
acute. From Somerset county operators on
the Baltimore & Ohio lines have reported that
even the percentage allotment of cars to their
mines had been cut down. The average dis¬
tribution for the past ten days has only been
about seventy-five per cent of the number
promised. Monday is supposed to be “ban¬
ner day” so far as empties are concerned and
this week the delivery of empties fell way
below usual. The result has been that a rise
of ten to fifteen cents a ton has followed at
this point, with quotations generally firm and
inclined to further up-turns.
The pier situation, which is always a cri¬
terion of the condition of the soft coal market,
has been virtually cleared of free coal. There are
odd blocks of coal standing there but are being
held firmly at prices that the buyers are not
disposed to pay, rather than any inability to
sell. One peculiar phase to this rise in price is
that New England, so far, has not been a
heavy contender in this market. A betterment
in price is usually followed by activity from
that direction, but this has not been notable
up to the present writing.
Gondola and small tonnage cars are hard to
get by the shippers. A railroad man of author¬
ity stated that the sex were being placed in
the steel trade and with the present situa¬
tion to face promises of deliveries in either
of this size cars should be made with this in
view.
Fairmont slack has been up to its old capers
and the price has jumped above the seventy-
five cent a ton mark. In the face of suspension
of some of the large mills in the cement dis¬
trict, demand from other sources has taken all
of this coal that has been offered at increased
prices. Coupled with the fact that the mines
are not “making” this grade, local dealers look
for a further advance. Westmoreland gas
slack has been on an upturn also. Fifteen to
twenty cents a ton over the prices of a
month ago have been registered on top
grades.
Spot sales from the following districts were
about this range at mid-week. Greensburg,
$1.25 to $1.35 for mine run, $1.40 for screened.
Reynoldsville-Punxsutawney, slack eighty-five
to ninety-five cents; run of mine, $1.20 to $1.25;
three-quarter screened lump, $1.30; smithing,
$1.30 to $1.35. Western Maryland coals, ninety
cents to $1.05. Clearfield, run of mine, $1.30
and up. Somerset, ordinary $1, fair $1.25 to
$1.30, best $1.40 and up.
Anthracite Situation.
With the first of October come and gone,
the increase in pea size coal is still in the bal¬
ance. The warm weather in September stepped
in to wreck the plans that had been made.
Some of the independent dealers are asking
$2.10 and $2.15 for pea coal but up to the
present time there has been no change from
the $2 price made by the companies. One
feature that stands out to bar the way to rais¬
ing the price on pea coal is in the form of
sales that have been made even below the $2
mark by the independents, and on which de¬
liveries have not been completed. The demand
for this size has shown considerable increase
during the past week and deliveries have been
heavier than for any individual week since
last June.
Stove coal continues to be the leader, with
nut and chestnut also well to the forefront.
The only size that has not been well taken has
been egg and this is controlled by a season¬
able reason.
The mines are all working full time and
shipments over the piers to coast points north
has been up to the volume usual to this part
of the year.
Philadelphia News Notes.
Arnold Gersetlle, sales manager for Percy
Heilner & Son, is away on a trip to the west
this week.
Robert P. Magee, local manager of sales for
the Knickerbocker Fuel Company, spent the
fore part of the week on a visit to the mines
of the company in Somerset county.
I. A. Boucher, superintendent of the Beaver
Run mines at Beaverdale. in Somerset county,
paid a visit to the headquarters of that cor¬
poration in the Pennsylvania building.
Murray B. Courtright and H. B. Cornog of
the Cortright Coal Company were in West
Virginia this week on a tour of inspection of
the mining properties which the local com¬
pany is sales agent for.
Next Monday the annual meeting of the
Philadelphia & Reading Coal & Iron Com¬
pany will be held in its offices in the Terminal
building in this city. The president and six
directors to serve for the ensuing year will be
elected at this session.
Abraham Mayer died at his home, 3211
Fountain street, at the ripe old age of eighty-
three. He was a pioneer in the coal business
in this city, but retired from actual participa¬
tion in it several years ago. He was greatly
Interested in Austrian emigration and was one
of the founders of the Austro-Hungarian Bene¬
ficial Association. He was buried Tuesday.
Considerable interest is being shown in the
meeting called by the Ko-Koals at the Hotel
Roosevelt on October 21. Some of the stal¬
warts of the old organization are still of the
belief that more can be accomplished and
more interest created by clinging to the social
end that has been -one of the fundamentals of
Ko-Koal. There promises to be a lively argu¬
ment as to the best course to pursue in the
future.
George E. Coughlin, city and southern sales
agent for the Philadelphia & Reading Coal
& Iron Company, thought that his birth-
date was a deep, dark secret and as for the
number of his years, every one of them are
years young. But somewhere some of his
good friends discovered the day and date and
to celebrate they swooped down on Mr.
Coughlin’s home and declared a birthday party.
Some of the Philadelphia coal men who were
in the “secret” were Frank W. Kennedy, Wal¬
ter C. Shipley, Andrew McKee and Walter
Mason.
Henry Wharton, who has been connected
with the Westmoreland Coal Company for the
past thirty-one years, resigned his position,
effective the first of this month. Mr. Wharton
over ten years ago was elected secretary of
the Westmoreland Company and those prop¬
erties allied with it. In this capacity he was
also the sales manager of the company. The
change that has been made will also result in
a change in the sales force. C. B. Nichol, who
was Mr. Wharton’s assistant for many years,
will take charge of this department. Mr.
Wharton is the president of the Montrose-
Pocahontas Coal Company, with holdings in
McDonnell county, West Virginia. He has
taken offices at 265 Drexel building and will
devote the most of his time to directing these
properties. He also contemplates connections
that will give him the sale of gas coal in this
territory.
Political botheration that comes of the mayor
being of one stripe and the council of another
political faith, resulted in the ' appropriation
for fuel for city plans being allotted insuffi¬
cient funds to care for the coal to be used for
the year. To care for supplies for the rest of
the year bids were opened at the city hall on
Tuesday. The largest deliveries were of bitu¬
minous, of which 6,400 tons were to go to
Lardner’s Point and 3,400 tons to the Torres-
dale pumping station. The following is a com¬
pilation of the prices that were offered in the
bids;
•Lardner’s— ^
Point. ^Torresdale-
Bidder —
Rail.
Water.
Rail.
Water.
Lmmons C. M. lo .
2.63
2.48
2.63
2.48
B, Nicoll & Co .
2.90
2.7.5
2.90
2.76
Swa-yne & Co .
2.0.5
2.80
2.65
2.50
Pennsylvania C. it C. Co..
2.95
2.80
2.95
2.81
W. 11. B. & Co .
2.80
2.55
2.85
2.. 55
Weston-Uodson Co .
.3.09
2.94
3.14
2.94
Greensburg C. & C. Co...
2.89
2.89
2.74
T. Pierpont & Sons .
2.90
2.75
2.90
2.75
S. M. Martin & Co .
2.90
2.5.3
2.95
2.53
George B. Newton & Co..
3.23
3.23
Kogers-Corr Coal Co .
2.64
2.49
2.64
2.49
The following were the low bids on the
principal anthracite deliveries: 200 tons pea
coal to Mingo Creek pumping station, $4.70 a
ton, Emmons Coal Mining Company; 100 tons
washed pea. No. 3 grade, to Belmont filters,
$4.10, Emmons Coal Mining Company; 100
tons pea, washed, No. 3 grade, Queen Lane
Filters, $4.19, Philadelphia & Reading Coal &
Iron Company; 1,500 tons pea, washed. No. 3
grade, Belmont Pumping Station, $3.56, Em¬
mons Coal Mining Company; 200 tons No. 3
buckwheat, Queens Lane, $2.68, Emmons Coal
Mining Company, and 500 tons to Roxborough
Auxiliary at $3.09, Emmons Coal Mining Com¬
pany. —
Baltimore Trade.
Baltimore, Md., October 7th. — {Special Cor¬
respondence.) — The coal trade here in all its
branches is fast settling down to a typical fall
condition. As orders begin to come in for fuel
of all grades, the trade begins to .grumble more
and more at short car supply, shortage of labor at
the mines, etc., etc.
Business is undoubtedly improving. Consider¬
ing the poor summer just put behind it may be
said to be quite satisfactory at present. Anthra¬
cite dealers here report that a pretty good fall
trade is now being done and that with the first
touch of real cold weather that they will undoubt¬
edly be almost swamped with immediate delivery
business, as more cellars are empty at this time
than for a like period for a number of years
past.
The highest winter schedule has been put in
effect here. This is a little earlier than in some
past seasons, and covers the twenty-five cents
added each winter to cover increase cost of
hauling in heavy weather. This new schedule,
to which twenty-five cents is also added where
deliveries are by basket or bags, is as follows :
No. 1 hard, $7.35; No. 2, $7.60; No. 3, $7.85;
nut, $8.10 ; pea, $5.85, and buckwheat, $4.50. Sun-
bury. No. 2, $7.85; No. 3, $8.10; nut, $8.35. Lykens
Valley, No._ 2, $8.60; No. 3, $8.85; nut, $8.85.
From a bituminous viewpoint things grow daily
more satisfactory. Demand is such now that the
mines are having difficulty in keeping up with
business in the face of the poor car movement.
Prices are slowly stiffening. From now on the
upward movement is expected to continue.
Prices to the trade may be quoted about as
follows ;
Fairmont —
Three-quarter .
F. 0. B.
Mines.
F. 0. B.
Baltimore.
Run of mine .
Slack .
Somerset —
Best .
Good .
iC.06
W. M. R. R.—
Freeport .
B. & 0.—
Freeport .
P. R. R.—
Best South Fork .
Miller vein .
Ordinary .
2.03@2.03
2.03@2.03
2 58
2.88@2!93
2.03@2.13
While the closing weeks of September were
not so satisfactory in the matter of export move¬
ment from Baltimore, a pretty good record was
made for the month, as a total of 202,287 tons
was shipped on foreign account. The last week
of the month saw a movement of but 20,287 tons.
Italy again took the ' largest amount of coal
sent out on export.
Some Trade Events.
■ The Western Maryland Railroad has received
bids on 1,000 steel hopper cars of seventy-ton
capacity to take care of 'its increasiag coal
haulage.
The Maryland Steel Company is now very
busy. An order for 12,000 tons of ninety-pound
rails for the Charleston Southern Railroad was
received last week.
A big coal tipple has been built by the Balti¬
more & Ohio Railroad at the Huntingdon yards
in this city. The improvement cost about $150,-
000. The coal goes into a compartment arrange¬
ment, from which it is released as needed, thus
avoidin.g double handling.
A well known anthracite operator who came
down from the regions this week, augmented the
evidence that the anthracite companies were in¬
clined to store stocks of steam coals especially,
in anticipation of labor trouble next April 1st.
This is rather difficult at this time because of the
much better demand for steam sizes that has
sprung up in all directions. At the same time
it must be appreciated that the companies have
got to carry reserve stocks of these sizes on hand
at the mines especially, to keep their pumps going
should a suspension occur early in the spring.
300
THE BLACK DIAMOND
[October 9
New England Trade
Boston, October 7. — {Special Correspond¬
ence.) — The long expected price war in bitumi¬
nous has started. Just where it will end and
the number of bituminous operators that will
be obliged to abandon this, field is of course
a matter of guesswork. The first gun has been
fired by the newly reorganized Darrow-Mann
Company, who have announced their 1916
prices as on a basis of $3.60 per ton f. o. b.
Mystic Wharf. This is based on a $2.83 price
f. o. b. Hampton Roads ports.
On this basis New River and Pocahontas
should sell at $3.37 per ton alongside Boston
Harbor, for it costs twenty-three cents per
ton to carry coal from the Harbor to Mystic
Wharf and unload it. The difference between
the $3.60 Mystic Wharf price and the $2.80
f. o. b. Hampton Roads ports is eighty cents.
Subtracting the twenty-three cents — the Mys¬
tic Wharf unloading charges — from the eighty
cents, leaves fifty-seven, which represents Dar-
row-Mann’s freight rate basis. Inasmuch as
it is difficult to get space from Hampton
Roads ports to Boston for less than seventy-
five cents, many of the local selling firms are
wondering where they are going to get off.
The announcement by Darrow-Mann is re¬
ported to have been followed by one from the
New England Coal & Coke Company which
indicated that this corporation would protect
its customers as to service and price. These
two concerns, together with the Consolida¬
tion, the Sprague, Burton and Stetson con¬
cerns, are the most important in New Eng¬
land. While the Consolidation’s price sched¬
ule may be influenced more or less by the re¬
duction in New River and Pocahontas made
by other firms, the change will not be as
drastic for the company deals principally in
Georgia Creek and like coals. But with the
other big factors fighting each other, small
operators who do not control vessel ton¬
nage will find it difficult to compete here for
business and for that reason are apprehensive
as to the future.
As compared with a week ago, the local
whole bituminous market has not changed
noticeably, although some houses profess the
Mystic Wharf market is perhaps a shade
firmer owing to smaller receipts. New River
and Pocahontas are reported as having sold
at that point recently at $3.60 to $3.70 per ton
on cars, mostly the lower price. A year ago
these same grades of coal were bringing $3.75
per ton or better. Contract coals are arriving
in fair 'volume, and there is practically no
cancellations in deliveries of these for business
among the manufacturing consumers is stead¬
ily increasing. Then too, the cooler weather
has brought about a marked increase in the
consumption of bituminous by hotels, office
buildings and apartment houses, and some of
the retail firms have been caught with small
stocks on hand. Georges Creek at Mystic
Wharf is $3.90 to $4 per ton on cars, mostly
$3.90, and not especially active.
Stocks of bituminous at southern shipping
ports are still in excess of the demand, but are
considerably smaller than reported a fort¬
night ago. Some shortage of cars is reported
by operators in the Maryland and West Vir¬
ginia fields. This car shortage and some labor
shortage has resulted in a slightly firmer tone
in Pennsylvania bituminous, although the offi¬
cial market is still quoted from ninety cents
to $1.50 per ton on cars at the mines. Certain
it is, however, that much poorer coal can not
be had for ninety cents than was the case a
week or so ago. Some extra fine coals are re¬
ported as having been sold here at 5 to 10
cents per ton more than quoted last week, but
the amount was too small to be a real market
factor.
Local wholesale anthracite firms say business
is all that could be expected. The demand is
not only brisk, but embraces nut, stove, egg,
broken and buckwheats. Pea coal is appar¬
ently the only quiet thing on the list and goes
begging at $4.05 per ton alongside Boston
Harbor. Cargo as well as car-lots are selling,
from Sound points to Portsmouth, N. H.
Maine continues to buy sparingly, most retail
dealers located in that state having covered
their requirements a month or more ago.
While some anthracite is being shipped to
the Provinces each week, the movement is
somewhat disappointing, according to ship¬
pers, a fact largely due to a lack of vessel
space.
The September output of hard coal was
much smaller than it was in the corresponding
month of last year, and stocks at tidewater
shipping points have been reduced materially.
This fact, together with an expected short car
supply and predictions of a still heavier de¬
mand for coal before snow flies all make cer¬
tain local firms very bullish on the winter
market. Some dealers go so far as to express
no doubt but that certain of the prepared sizes
will be selling at a premium on or before Jan¬
uary 1st. Stove and egg, alongside Boston
Harbor, are still quoted by the important firms
at $5.85, and nut at $6.10 per ton. Independent
shippers have no difficulty in securing full cir¬
cular prices for whatever little they offer on
the New England market. Buckwheats are in
short supply, on a basis of $1.80 f. o. b. New
York for No. 3, and twenty cents more for
birdseye.
The marine freight rate market is firmer,
owing to favorable shipping conditions and a
decrease in space offerings. From Hampton
Roads ports to Boston very little space is
obtainable for less than eighty cents, and from
that price rates run as high as ninety cents.
From New York to Boston^fifty and fifty-five
cents .per ton is asked, from New York to
Pawtucket forty-five and from New York to
Providence forty cents. The Boston Tow Boat
Company, a subsidiary of the Massachusetts
Gas Companies, has sold another tug, the “Un¬
derwriter,” to Smith & Perry of New York.
The tug was one of the oldest in the employ of
the Tow Boat Company.
Buffalo Trade.
Buffalo, N. Y., October 7th. — (Special Cor¬
respondence.) — Lake shipments of anthracite for
September were 411,750 tons, as compared with
428,426 in the sarq,e month of last year. The sea¬
son’s shipments to October 1st were 2,791,075
tons, a.gainst 3,156,781 in the same period of 1914.
The September shipments were on a pretty small
scale this year and the present month will not
show any improvement, unless the showing is
better than .that already made. For the past week
the shipments were 101,020 tons, as follows :
Duluth-Superior, 46,600; Chicago, 21,700; Mil¬
waukee, 16,000 ; Fort William, 8,000 ; Manitowoc,
3,300; Kenosha, 2,300; Sault Ste. Marie, Ont.,
2,200 ; Waukegan, 920.
The anthracite trade has begun to pick up and
dealers are beginnia? to show more interest than
for some months. The somewhat cooler weather
has had something to do with this more extensive
demand, but there is a growing feeling that coal
is not going to be plentiful for many weeks
ahead and that cars are not going to be had as
easily as has been the case. In fact, there is al¬
ready some tightening of the car supply. Box
cars are being used to a lar.ge extent in the grain
trade and for the movement of other freight.
Dealers are being advised to get in coal as early
as possible, for there is sure to be a large demand
before very lon.g and it will be hard to fill.
Bituminous business is holding up steadily and
orders are in considerably larger volume than a
couple of months ago. Prices are showing a
stiffening tendency, especially in slack, which is
now sellin.g at about $2 to $2.15 for the best
grades. Occasional cars are being wanted by a
large number of customers, and where contracts
exist there is a good movement. Buyers have
begun to stock up to some extent, believing that
the car supply is not going to be adequate long.
The lack of small gondola cars is already com¬
plained of by most operators and they are find¬
ing that coal is not coming through from the
mines nearly as quickly as usual. In fact, on
many shipments about double the time is re¬
quired. There is the same lack of miners re¬
ported as has been the case for some time, and
even where a full staff of miners is present there
is not quite the usual efficiency, for the talk of
strikes is frequently heard and at some opera¬
tions strikes are actually on. Labor troubles
threaten to grow worse from now until next
spriag.
Denver Trade.
Denver, October 7th. — {Special Correspond¬
ence.) — Jobbers and retailers report a very satis¬
factory volume of business this week, and re¬
turns from producin,g sections indicate that the
output will run about the same as last week. It
is believed that the Trinidad and Walsenburg dis¬
tricts will even make a larger tonnage than last
week.
Storing of all grades for domestic use con¬
tinues, and the demand has been very brisk for
threshing. Threshing operations in the dry farm¬
ing section of the state have not yet been finished
and the same is true of northern Colorado and
southern Wyoming. Much lignite is being sent
out for this purpose. The lignite production for
the week will exceed 60 per cent of normal.
Prices for slack are steady to unchanged, with
a demand for all grades that is very satisfactory.
There are indications of a possible surplus on
Routt county, where the lump production is
steadily increasing.
Lignite prices f. o. b. mines are as follows:
For Denver delivered, lump, $2.35 to $2.65; mine
run, $1.50 to $1.65; slack, $1.05 to $1.25. For
points outside of Denver, lump, $2.50; mine run,
$1.55 to $1.65; slack, $1.05.
Duluth Trade.
Duluth, Minn., October 7.— (Special Corre¬
spondence.) — There does not seem to be much
chance of last year’s coal receipts at the Head
of the Lakes being equalled this year. In
fact, there is no such expectation. The figures
of receipts to date show a big difference from
last year, the margin between the receipts up
to the first of this month and the total of last
year being too large to be overcome in the
short time that remains of the lake season.
Up to the first of the present month there
have been received at this point, via the lakes,
5,879,365 tons of all kinds of coal, as against
7,380,100 tons in the same time last year, a
difference in favor of 1914 of 1,510,735 to*ns.
The total receipts of the season of 1914
amounting to 9,488,297 tons, and to make up
the difference between that figure and what
has already been received this year the ships
would have to bring up from Lake Erie 3,608,-
932 tons during the next two months, an
amount not only improbable, but impossible.
Receipts during September, just past, were
as follows, assigned to the various companies:
Anthra¬
cite. Bituminous. Total
Northwestern Fuel Co _ 40,000 126,000 166,000
Pittsburgh Coal Co . 29,000 79,000 108,000
Berwind Fuel Co . 50,000 50,000
U. S. Steel Corporation . 149,000 149,000
Carnegie Fuel Co . 116,500 116,500
Hanna Coal Co . 9,000 66,500 75,500
Zenith Furnace Co . 79,500 79,500
Northern Coal & Dock Co. 7,000 62,000 .69,000
Clarkson Coal Co . 13,000 38,000 51,000
Island Creek . 58,000 58,000
Boston Coal Co . 12,000 13,000 25,000
Great Lakes . 31,000 31,000
Lehigh Valley . 13,000 . 13,000
Reading . 6,000 39,000 45,000
Reiss Coal Co . 7,000 30,700 37,700
Total September . 136,000 938,000 1,074,200
September, 1914 . 81,846 1,177,330 1,259,176
Total to Oct. 1, 1915 . 1,129,220 4,750,145 5,879,365
Total to Oct. 1, 1914 . 1,070,800 6,309,300 7,380,100
Business in the country supplied from the
docks at this point has increased to such an
extent during the last week or two that coal
men here say that the business of this season
bids fair to far outclass the fall business of
even year before last. Thus far, it is away in
advance of the business a year ago, as was
to be expected, for last year there was little
demand. Shipments are going out consider¬
ably better than they did up to a week ago,
for the grain movement has set in in earnest
and cars are now available for coal shipments
to northwestern points. The figures showing
shipments of the past month are not yet avail¬
able, but it is unofficially given out that they
show up well, and, of course, much better
than last year. Inquiries are pouring into the
general offices much faster than the supply
of cars permits the filling of orders.
Coal arrivals at Fort William and Port
Arthur, Ont., have fallen off considerably in
the last ten days. The probable reason is
that with the immense increase in freight
rates on grain, boats do not care to wait to
load coal at the lower lakes, but hurry back
to the western end to get more cargoes. This
is probably true of the situation at this point
as well. Tonnage is being booked to carry
grain at six cents, the highest rate that has
prevailed any year since the larger type of
craft has come into the business. In the old
days as high as thirteen and fifteen cents was
paid, but that was when boats were scarcer
and smaller. At the six-cent rate there is a
big enough profit in carrying grain to have
the boats come back light and still be ahead.
With the lack of interest in shipping coal
from Lake Erie, which exists just now, there
is not much chance of evenin.g up the rate.
Phe Black Diamond
Vol. 55. No. 16 ggi
Rumbus OCTOBER 16, 1915 PhtsIuSoh $3.00 Per Year
Port of Baltimore— The Reason Why It Grew.
What of Baltimore as a coal port? Is it all
that it should be? Has it served its tributary
coal fields well or has it allowed them to suffer
while other coal fields gained because their ports
served them better? Or, has Baltimore served as
well as any other American port but still lost
business for its tributary coal mines because
some foreign coal ports served their coal mines
better?
Suppose we reverse the process for a minute.
Is the Baltimore port all that can be expected
but is it handicapped by the policy of the mines ?
Does it suffer any from the character of the men
who do its bunkering and export business ?
There is no intention here to take the port
apart to see what is is made of. No “third de¬
gree” methods are to be employed. The writer
is just curious. A short while ago he put Phila¬
delphia under the glass and found something
interesting. That is, it has a landlocked harbor
and ample railroad facilities. It has a source of
supply on one side and a market on the other.
It has lost only because Philadelphia men haven’t
been as keen as they might \Vith that fact in
mind there is natural curiosity as to Baltimore.
Just wherein does it succeed or fail?
Baltimore is like all coal ports. It has a period
when things were quiet but now it is booming.
But, unlike all of them, it once was master and
might almost have controlled the situation. Thus
its period of somnolence was costly. Maybe this
is due to the fact its men were slow to realize
the value of machinery.
Even so, from the time that coal burning
steamers found it necessary to make land on the
eastern coast to get fuel Baltimore has been do¬
ing bunkering business. It gained trade easily
because it had the two essentials — an almost per¬
fect harbor and an abundant supply of excellent
coal. In the beginning the Georges Creek district
was producing the fuel for these boats. And
Georges Creek has America’s best coal, while
other fields feeding through the same port have
never failed to yield really more coal than is
necessary.
Thus one question is answered. Baltimore has
a source of supply behind it.
As to a market beyond. There was first the
bunkering business — which flattened out a little
when the other ports grew. Also there came first
a small and then a big and recently a whopping
demand from foreign ports. Thus it has a mar-
Nature Made it a Natural Harbor — The
City and the Flow of Commerce Added
the Facilities Which Make It a Port.
ket and a good one. Still the competition of
other ports in America and from other coal pro¬
ducing countries in the Mediterranean and lower
European ports pointed out the fact that Balti¬
more had a fight on hand even if it was “a
straight shoot across the pond” and a saving in
many miles of ocean travel for those who had
coal to export. Baltimore thought deeply over
the problem — and kept on thinking. But some¬
thing happened that brought her up with a short
shrift. The big fire of 1904 changed the whole
harbor line on one side of the pear-shaped bay
that is the harbor proper.
Two of the railways, the Baltimore & Ohio
and the Western Maryland, has seen the ad¬
vantage of having coal piers for export purposes
and the former has established it’s pier on Curtis
Bay and the latter at Port Covington. This gave
the connecting link between the market — the
mechanical devices.
Coal companies had promised export business
that would give tonnage to keep these properties
fully employed. The fire bred a new Baltimore
spirit and the coal companies did their part, but
the tonnage, while showing perceptible increases
year after year, did not threaten any of the other
ports to a very great degree until the coming of
the European war.
Then things started to hum. The tonnage
leaped forward in most surprising figures. Ship¬
ping interests that looked on coal for export as
only incidental found that coal was taking the
time-honored place which some other things had
claimed as their own. Were figures obtainable
for 1915 it might be found that coal had reached
its pinnacle in volume — and the hopes that had
been entertained a decade ago were at last
realized. This completed the program — the port
actually had the business.
So, another epoch is on the way — Baltimore
has great expectations. The coal business has
outgrown itself on the Curtis Bay pier and a new
costly structure must take its place. The Penn¬
sylvania Railroad has decided to become a factor
in coal exporting from this harbor and it has
plans and has started to build a pier that will
cost over a million dollars to take care of traffic
originating on its lines and seeking a Baltimore
outlet.
Right here it might be said that the railroads
are not the only factor in this bid for position
of Baltimore’s coal trade. Over ten million of
dollars has been or will be spent by the city in
harbor improvements. Mayor Preston, who in
several terms of office has worked to make his
city a seaport of the first class, is another factor.
Or, as Herbert Sheridan of the Traffic Bureau >
of the Chamber of Commerce put it:
“First the big fire and second Mayor Preston
made Baltimore as a port.”
He might have added also that Baltimore, from
the lighthouse keeper, way down the river, to the
biggest boat owner on the docks, is keenly alive
to the possibilities of the port. And Baltimore is
up and doing. Everyone you meet is a booster.
Thus, the last point is answered — Baltimore has
all the requisites of a port and the men.
Then there is one thing more that is a tre¬
mendous leverage toward bringing coal trade
from foreign parts to the piers of the Monu¬
mental City. This is a little matter of railroad
preference.
Baltimore lies 173 statute m.iles from the Cape
Henry lighthouse, the first point of call on the
Chesapeake Bay. Her geographical position to
New England points also adds many miles. On
the strength of this there has been allowed a
seven-cent differential on consignments of coal
for delivery “outside the capes” from the Somer¬
set coal fields in Pennsylvania and from the
Georges Creek district in Maryland as against
the rates that apply for delivery at the port of
Philadelphia.
It seems a well established fact that coal move¬
ment by boat is not as expensive as by rail.
Still, there are other things, such as pilotage and
other charges that are supposed to absorb the
seven cents difference. However, the differential
has been one of the biggest leverages that has
benefited this port so far as exportation of coal
is concerned.
The Coal Supply.
Three districts are drawn on to supply the coal
shipped from that harbor. First is Somerset
county, Pennsylvania, which takes a rate of $1.60
for track delivery, $1.35 for pier delivery within
the capes and $1.18 for outside the capes. The
An Ocean-going Collier Loading at the Curtis Bay Coal Pier of the Baltimore & Ohio Railway.
302
THE BLACK DIAMOND
[October 16
Georges Creek zone of Maryland takes the same
rate. The Pittsburgh and Fairmont, \V. Va.,
zone takes a rate of twenty-live cents on the ton
higher than those above mentioned.
And, these freight rates are net alongside.
There is no "port terminal charge,” "dockage,”
nor any other forms of assessment that should be
counted in as railway charge.
Even pilotage is reduced to the simplest form,
h'rom any "taking on point” except under special
arrangement the set scale is as folows :
"h'or vessels drawing fifteen feet or over $5 per
foot: for vessels drawing twelve to fifteen feet,
$4 per foot; for vessels drawing less than twelve
feet, $.3.j0 per foot.
P)Oth the pilots association of Philadelphia
and of the Hampton Roads territory are of the
belief that the Baltimore pilots work too cheap.
It has been pointed out that in the Philadelphia
harbor there is 103 miles of river course on the
Delaware and the charges are compared as fol¬
lows from extreme hailing points: Ten foot ves¬
sels, $44 inward and $40 outward on the Dela¬
ware and $35 on the Chesapeake; twelve-foot
vessels, $5:2.80 inward and $48 outward on the
Delaware and $48 either way on the Chesapeake;
twenty-five-foot vessels, $137.50 inward and $125
outward on the Delaware and $125 on the Chesa¬
peake. It should be borne in mind that the
Chesapeake takes 170 miles of river course to
Baltimore.
The Delaware pilots declare that their brothers
of the Chesapeake have only to set their course
toward Baltimore and change their bearing once
from hailing point to the piers while their way
is bestrewn with all sorts of sand bars and devi¬
ous courses with a dredged channel to follow as
the river narrows down toward the city of Phila¬
delphia.
Again, taking the other angle of comparison
on pilotage it seems that the members of this
fraternity who are operating at Hampton Roads
are not letting aii}' grass grow under their feet
in these prosperous times of war and heavy coal
export. Said a Baltimore observer :
‘‘Pilotage is looked on as a mild form of graft
countenanced by our government as a toll against
foreign trade. Baltimore has been circumspect
about it. Even the pilots' association will allow
special arrangements. But in Hampton Road, ye
gods, if there is not a few independent fortunes
built up during these times of stress it is not
because the pilots have overlooked any form of
getting theirs while the getting is good.”
The foregoing has outlined that which has con¬
tributed to make Baltimore a coal harbor of
prestige within the past fifteen years. Now as
to the actual equipment in the harbor for handling
the coal that seeks an outlet through her harbor,
h'irst and foremost it should be held in mind by
the reader that Baltimore through its railways
and through the men that see to the trans-ship¬
ment of coal have one point in view in the export
trade, and that to see that the coal through the
port gets to its destination in the lumpy form that
it comes from the mines in central Pennsylvania
and eastern part of West Virginia. This point
alone makes the shipment a little different to
handle than the transfer of coal from a territory
where the product is harder.
Baltimore and Ohio Piers.
Two features stand out in the equipment of
coal terminals for the B. & O. One is that the
three piers which are now in use mark the stages
of development of the coal business of the port
and the second is that this railway is getting
ready to lift a monument to an epoch yet to
come.
Curtis Bay is the huh of the industry, so far
as this road’s coal terminals is concerned. The
pier placed there over a dozen years ago was to
all intents and purposes of the engineers who
constructed it, built to last any increases in ton¬
nage that could be anticipated in the future.
Now, however, it has been found that this is
inadequate and expensive to operate and it will
have to give way to a giant pier that will have
every modern device to take care of the ever
increasing tonnage of this road.
The present pier at Curtis Bay is 800 feet in
length with four lines of tracks on the top. It
is sufficiently large to allow four vessels to load
at one time — two to each side. The pier is
equipped with twenty-five pockets on each side of
the pier and with the chutes so arranged to per¬
mit free action of about 1.000 tons an hour.
which can be sent into the holds of the vessels
loading on either side.
Speed has been one of the requirements at this
pier. Some of the records that have been made
in coal loading that stand out on the eastern sea¬
board as being top notch work were as follows;
The loading of the collier Neptune on July 21,
IDll, which was loaded with 13,000 tons of coal
and 2,200 tons in the bunkers, all of which went
in during one working day. Then as for speed
rather than quantity the same collier on Novem¬
ber 18, 1912, loaded 7,473 tons in three hours and
forty-five minutes.
The receiving yards at Curtis Bay has a capac¬
ity of 2,500 cars, and as this yard is used entirely
in the coal business it might be said that this is
a total capacity for coal. Even this is not thought
sufficient to take care of the increasing business
and there will be a spreading of the trackage as
soon as the new pier goes into operation.
Of the tonnage handled over the present pier
actual figures are meagre. Just why, it has been
a little hard to determine, yet there is a disposi¬
tion on the part of the railways running into
Baltimore to reserve actual counts. During the
past eight months an average close to 350,000 a
month has gone over the piers, or, figuring on
natural increases for the remaining months, the
total tonnage for the year, B. & O. officials say,
should amount to about 3,200,000.
As has been stated previously, part of Balti¬
more’s coal business is realization and part ex¬
pectation. In that the officers of the B. &. O.
railway have authorized and the plans have
been completed for the new coal piers it is
only fair to consider them already as a part
of the port's^oal handling facilities. It was
decided on September 10 of this year that
the new pier should be proceeded with, that
it should cost in the neighborhood of $1,500,000,
and have a total capacity close to 10,000,000
tons of coal per year. With a mind to the
proper handling of the coals hauled by this
railway, Francis Lee Stuart, the chief engineer,
and his assistant, M. A. Long, chief architect,
spent over two years examining the structures in
existence that would best fit the coals that leave
the Baltimore harbor. One type of pier and its
equipment that was located in Nova Scotia gave
them a basis from which the approved plans were
evolved.
In design the pier will consist of two car
durnpers inshore, built in units and equipped with
rapid moving lielts leading to movable towers
on the piers. These can be used for loading into
vessels on either side, or, the entire loading
ppacity can be directed to one vessel. This pier
is to be 700 feet long and 115 feet wide. The
car dumpers will be capable of handling cars
fifty-three feet long and unloading forty 100-ton
cars i)er hour. The belts used for conveying
the coal will be run at speeds varying from 250
to 500 feet per minute, which will allow a loading
capacity of from 3,000 to 0,000 tons per hour.
Right here it might he stated that the com¬
pleteness of this equipment will be a tremendous
bid for increased tonnages in export coal. By
the fact that there is a sufficient depth to allow
free access and egress of boats under their own
steam, a lessening in loading time, time which
figures greatly against the long trip up the
Chesapeake Bay, Baltimore will make her bow
as a close competitor with some of the places
closer to the open water.
While the foregoing applies to the arrange¬
ment of and preparation for handling export coal,
there is another feature to the coal handling
equipment of this road. This is the two piers
at Locust Point. These are used for what is
known as har1)or trade.
Locust Point, as a terminal, dates back to 1848.
The B. &■ O. entered the trans-Atlantic trade with
a line of four of its own boats in 1865 and Locust
Point was a storm center of competition for
three years. It is situated behind Fort McHenry
on the left side of the entrance and has a point
of vantage in the inner harbor. The unique
feature of the placing of two coal piers in this
location shows the growth of coal handling as a
specialized feature of shipping. The days were
when coal, grain, ore and all other forms of
merchandise could l)e cluttered together, but now
is a day of specializing, each must be given its
own point of vantage. Though superseded in the
export trade 1iy Curtis Bay, the Locust Point coal
piers are still in active use, because Baltimore
conditions have made them so. One of these
piers is used for bituminous and the other for
anthracite shipments, and their particular use is
for supplies of domestic, harbor coal and fuel for
the bunkers of coastwise and ocean vessels.
Each of these piers has a berth room of 200
feet and is sufficient in length to allow two boats
The Baltimore & Ohio’s Curtis Bay Pier, Wh ich Holds the World’s Record for Loading.
No. 16]
THE BLACK DIAMOND
303
to load at one time. The total amount of coal
passing over Locust Point averages about 55,000
tons a month or 700,000 tons a year.
Western Maryland Piers.
In 1004 the Western Maryland Railroad made
its bid for coal export business and to pave the
way erected at Port Covington a coal pier de¬
signed to be as complete as could be asked for
pair of Allis Chalmer’s slide valve hoisting en-
break of the war in Europe in 1014 the tonnage
over these piers came in tits and starts and can
hardly be gauged. For the past twelve months
an average of 125,000 tons a month have been
going over its side and, according to the agents
of the road, even these figures are lialde to ex¬
pansion.
This pier is an immense affair with a total
length of 1,283 feet, though 5, 53 feet of this is
taken up in the length from the bulkhead to the
toe of the incline. In all it has an elevation of
70 feet above the mean low tide. It is of pile
and timber construction.
Its coal handling equipment is of forty Link-
Belt patent coal chutes — twenty to each side of
the pier ; three 150 horse-power engines and a
pair of Allis Chalmers’ slide valve hoisting en¬
gines with a single drum. This gives an unload¬
ing capacity of twenty-four fifty-ton cars an
hour.
The method employed in unloading the cars is
designed to minimize breakage of the coal to as
great a degree as possible. The system employed
is to place cars on the load tracks to the coal
pier and then send them down by gravity, one
at a time, so that they pass over the scales which
automatically weighs each of the cars in transit.
.-\s the car passes over the “barney pit” a signal
is given to the engineer in the power house, and
this brings a barney car out of the pit, which
pushes the car to the top of the incline, where it
can be switched to either side of the pier. The
car is run down to the coal pockets by gravity,
unloaded, and then by gravity it is run on the
transfer table, which, as soon as the car is on,
automatically starts the car down the empty track,
which is in the center of the pier.
The Pennsylvania Piers.
While piers of no great capacity and no con¬
siderable breadth either for cars or ship’s berth,
sufficed for such railways as the “Northern Cen¬
tral” and the “Philadelphia, Baltimore & West¬
ern,” these structures were hardly of the size,
location or dignity to do justice to the Pennsyl¬
vania railroad. So it is that the three |)iers now
in use have Ijeen willed to the Pennsylvania by
roads which are its subsidiaries.
However, this state of things are not to remain
as they are. For several years the Pennsylvania
railroad has been “talking” about building coal
piers that would give it capacity to handle about
any size or condition of coal shipment that might
come its way for transference from the Balti¬
more harbor. Now the piers are almost an ac¬
complished fact. Almost, for excavation of land
in the section of Baltimore known as Canton has
already been started and the Maryland Dredging
Company is doing its contract part to get ready
for the $1,000, 000 coal piers that have been
awarded to Arthur IMcMullen of New York to
build.
Several sets of plans were drafted for this new
structure and there were many “hitches” in the
negotiations with the city officials before all was
in order to go ahead. The present plan calls for
a pier 942 feet in length and GO feet wide and
with a depth of 30 feet at mean low tide. The
system to be used in carriage of the coal from
the cars to the holds is the result of years of
research by the engineers of the Pennsylvania
who had this work in hand. They have hit upon
a plan of dumping similar to that used by this
railroad at Erie, Pa., and the coal from this will
be received in a hopper that will feed into smaller
car units of about 4 tons each. An automatic
cable device w'ill be used to carry the coal from
these units to the chutes that takes the coal to
the holds of the vessels.
It is expected that these piers will be completed
and ready for use late in the fall of 1910.
But the Pennsylvania Railroad has three coal
piers in active use at the present time. And, if
history is right, it might have had four. Thereby
hangs a tale. Prior to 1870 Havre D’Grace was
quite the coal center for Chesapeake Bay busi¬
ness. The barges and boats from the canals used
to bring the coal to that point, where it was
jdaced aboard the bigger vessels. The railroads
wdth Baltimore terminals were making a bid for
the haulage of "black diamonds” and the P. B.
& \\’. R R. built a coal pier at Lower Canton.
For two or three years it stood there waiting for
business that never came and finally the idea of
utilizing the piling and construction for a grain
elevator was put into effect. W'hTTc it was to all
intents and purposes a coal ])ier not a ton of coal
ever went over it.
The three piers now in use are known as South
Clinton street — or the Canton Piers — and the
Boston Street Piers Nos. 3 and 4.
The Canton piers were purchased from the
Baker Whitely Coal Comi)any in 1903 and shortly
afterv/ard in a tire these were burned in part and
rebuilt. These are forty-eight feet wide and 780
feet long, are equipped with two tracks of a
capacity of sixty cars and a chute system of de¬
livering the coal into hunkers.
The Boston street piers are used for local
anthracite trade. No. 3 is fifty feet wdde and
has a length of 400 feet and has three tracks of
equipment and capacity on top of thirty cars.
No. 4 has a length of 400 feet and is 105 feet
wide, with a top capacity of fifty-five cars. Both
of these piers use a gravity system for placing
cars over the chutes. They are also equipped
with pockets for the storage of coal and these
are leased to local retailers wdio utilize them for
harbor delivery and delivery to river boats.
Using the Coal Piers.
With its tremendous line of water front under
the control of the city both business firms and
retail coal dealers take advantage of the pier
delivery for cheaper coal than they could get by
having it delivered “on the line.” This has been
one of the reasons for Baltimore making more
practical than ornamental use of small docks.
True, even the heavier users of coal have
stuck to “a mule, a nigger and a wheelbarrow,”
as the modus operand! in taking care of fuel when
it is placed on the wharves. Nevertheless, grab
buckets and other machinery is coming to the
front. The number of small craft that engage
in the carriage to and fro is a small flotilla in
itself.
As to the sizeableness of the wharves that goes
toward receiving coal the following list of firms
having this water-front facility is convincing:
In the section known as the Sea Wall and
Custis Bay : Rasin Monumental Company, Roy¬
ster Guano Company, Martin Wagner Company,
The United States Asphalt Company, The Stand¬
ard Guano Company, Swift & Co. (fertilizer
;)lant) and the Davison Chemical Company.
At Sparrows Point, nine miles below the city,
the Maryland Steel Company has a good wharf¬
age system and lighter a large amount of the coal
that is used in its plant.
In the Spring Garden section: The American
Ice Company, Becker Bros.. Thomson Chemical
Company, Consolidated Gas & Electric Company,
Swindell Bros., Carr Lowry Glass Company,
Baltimore Vitrified Brick Company, Tin Decorat¬
ing (Company, J. S. Young and the Davison
Chemical Company. Of the foregoing the
wharves of the gas and electric company are
equipped with grab buckets for carriage of the
coal.
At the Baltimore harbor ( iqjper docks), the
McComas Coal Wharf : The American Ice Com¬
pany, Reeders Wharf, the Baltimore Drydock
Company, Numsen & Co., W. S. Cahill Company,
Platt & Co., Toch Packing Company; Piedmont,
Mt. Airy Guano Company, Armour Fertilizer
Plant, G. Ober & Sons.
In Canton and the lower docks is the Block
Street Warehouse, W. D. Gill Lumber Company,
Anderson Lumber Company, Miller’s Wharf,
Lord Mott & Co., Roberts Bros., Southern Pack¬
ing Company, Miller Bros. Company, Booth
Packing Company, D. E. Foote Company, J. L.
Langrili, Webster Butterfield National Preserv¬
ing Company, Gibbs Packing Company, W. W.
Boyer Company, Canton Box Company, Kirwin
Shaw Company, H. J. McGrath Company, Canton
Lumber Company, J. S. Young Company, Sped-
den Shipbuilding Company, Standard Oil Com¬
pany, Roberts Bros., Baltimore Pulverizer Com¬
pany. D. B. IMartin Manufacturing Company,
General Manufacturing Company, Griffith &
Boyd, Herbert Fertilizer Company, Double A
Company, Baugh Chemical Company, Miller Fer¬
tilizer Company and the Chesapeake Shell Com¬
pany.
And, while practically all of the named firms
above liave facilities for receiving the coal that
is used in their own plants, (luite a number of
them have agreements with retailers for the trans¬
ference of coal from their docks so that a great
many of them enter into, indirectly, the retail
coal supply of the city.
It would not do in passing to overlook the big
coal pier of the Consolidation Coal Company,
which is used for fueling of shi])s, harbor busi¬
ness and many of the hundred and one purposes
that such a pier could be put to in a harbor in
which coal plays such a part, In addition to this
pier the com|)any has several tugs and boats that
are kept in the best of trim and are used as an
adjunct to their local business.
The Lighterage Business.
l.ightcrage and stevedoring in the harbor is
controlled i)ractically by two firms, the Rapid
Coaling' & Transfer Company and another firm
which is controlled by the" Baker Whiteley Coal
Company. The set rates range from eleven cents
to fifteen cents a ton for lighterage, depending on
(Concluded on page 307.)
304
THE BLACK DIAMOND
[October 16
More About “What Is a Dollar’s Worth of Coal?”
The accompanying chart is published in re¬
sponse to numerous recpiests from different
cities for an amplification of the table illus¬
trating an article entitled “What Is a Dollar’s
Worth of Coal?’’ which appeared in The Black
Diamond’s steam coal issue last March.
Given the evaporative power, or perform¬
ance, of two or more coals and the price of
either, one can easily determine their rela¬
tive values. Merely extend a line from the
price to the column headed with the num¬
ber of pounds of water one pound of the
coal will evaporate and you will find there
the cost in cents for each 1,000 pounds of
water evaporated. Then to compare with a
higher or lower performance coal, reverse the
process — select the column showing its evapo¬
ration and run down this column until you
get practically the same cost per thousand
pounds evaporated and extend the line back
to the price column and you have the price
*Of the O’Gara Coal Company, Chicago.
By E. H. Irwin*
Figures Carefully Compiled Prove That
It Is Money and Labor Saved to Use
Good Coal and Pay the Price Asked for It.
at which this coal should sell to give the
same performance value, as will be shown
later on.
The formula for making up the chart, or
adding to it, if you desire, is also very simple.
Thus, if a pound of coal will evaporate
pounds of water it would require 117.6 pounds
of coal to evaporate 1,000 pounds of water,
and, if 2,000 pounds of coal costs $1.80, one
pound will cost .09 of a cent, so 117.6 pounds
would cost 117. 6x. 09=10.584 cents, or prac¬
tically 10.6 cents, as shown in the chart.
For further illustration, let us take three
varieties of coal whose performance under
identical conditions at the United States Gov¬
ernment Testing Plant at St. Louis in 1907,
and what are regarded as fair analyses from
State Geolog.ical or other reliable sources, are
known :
Class A. Evaporates 834 pounds of water,
ash content 10%.
Class B. Evaporates 734 pounds of water,
ash content 14%.
Class C. Evaporates 6^4 pounds of water,
ash content 18% to 20%.
Class A sells for $1.80 a ton; the chart
shows it will cost 10.9 cents to evaporate 1,000
pounds of water, using 121.1 pounds of coal.
Class B should sell at about $1.60, at which
price the cost to evaporate 1,000 pounds of
water is 10.7 cents, and will require 133.3
pounds of coal.
Class C would not be worth more than
$1.40, for at this figure it would cost 10.8
(Concluded on page 309.)
THE COAL COST OF PROUUCINO. STEAM.
PRICE OP
EVAPQ
r/0
N
PER POUND
or
COAL FROm
ANBAT ZiZ° F.
Coal
s.oo
6. so
4.00
615
(y.S-O
A76
7 00
725
ISO
776
S.OO
S.25
860
87s
9oo
9.16
9.So\9.7S
to 00
70 25
7050
tons
//.oo
HIS
tt 50
11.76
/Zoo
2.600 res
:o5
'T
IN
CE
NJt
1
"0
E\
'A f
^0 1
RA-
YE
fOO
0 /
A/D
S Of
■ WATEf
\ from AND/
M E
$/. 0 0
10.0
9 JO
833
s.oo
7 70
742
7.14
6 90
4.44
4.7v5
Ais
688
6.73
SSA
6.40
527
5/3
s.oo
488
47 A
4 AS
4 66
4.44
436
42A
4/7
/■ZS
/ZS
HZ
to
to 0
742
926
893
4’ 42
833
8 07
7 82
jsA
736
7.75
6 9S
A76
4.57
A. 41
4 25
A. to
6.9 A
6.8/
6.AS
6.6 A
5.4U-
6.32
6.2/
I.H-O
/‘P.O
/2n
//.7
11.2
/0.8
10.4
9.99
9U
9.33
903
8 75
S.Hi
8.13
<f 00
778
7.57
734
7./S
700
AS3
4 67
4.5/
434
4 22
A 09
6 9A
—
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No. 16]
305
THE BLACK DIAMOND.
Is This the Solution?
One of the most intelligent retailers in a large
market of the middle west, who has been study¬
ing for a good many years the problem of getting
a profit out of the tonnage he handles, believes
that he has finally arrived at the inevitable con¬
clusion.
This is it: Consolidation.
"There are simply too many dealers in the field,
in consideration of the possible business to be
had,” is the way he puts it.
“Coal consumption is definitely limited. Take
any other article used by the public in general,
and you will find that the consumption can be in¬
creased by advertising, clever sales methods, etc.
This applies to food products, clothing, furniture
and the like. But not so with coal. The public
in your community is going to use a certain
amount, determined by circumstances over which
you, the dealer, have no control. If you are
sharp and aggressive you will probably get more
than your pro rata of the business, and somebody
else will get less. But the sum total will be fixed.
“Now, in this and a good many other towns
I have looked into, the tendency has been to in¬
crease the number of dealers. The business, like
any other staple line, looks like the proverbial
cinch to the outsider. He reasons that people
must buy coal. He knows a great many people
fairly well; therefore he can sell them coal.
Quod erat demonstrandum! He doesn’t stop to
ask himself whether he can make money on the
coal he sells ; he takes it for granted, and assumes
without question that there is a profit involved in
every operation in the coal yard.
“Well, even if we veterans of the trade were
to go to him and gently inform him of the diffi¬
culties of the situation, he would give us the
laugh and go ahead and get his experience at
greater or less cost. Many of these newcomers
drop by the wayside in short order — but others
are coming in all the time, and the result is that
there is always more competition than the amount
of the business to be had justifies. With much
of it uninformed, and with many prices quoted
that are absurdly low, it is plain that the chances
for profit for the legitimate, established, intelli¬
gent dealer are not always as good as they
should be.”
The Get-together Idea.
The state of affairs described by the dealer
quoted above is not overdrawn, at least in a great
many communities with which the writer is
familiar. And where this is so, the inevitable
result is that few of the yards are operating at
maximum efficiency. That is, many of them have
big fixed expenses, which can only be met by
keeping all equipment and employes working all
the_ tim.e. If they work only part of the time —
which is sure to be the case if there is too much
competition and too many dealers are canvassing
the trade — then instead of the volume of busi¬
ness being sufficient to support the organization
and leave a profit it becomes too little even to
take care of expenses, and there is a loss to be
confronted at the end of the season.
Of course, it may be explained parenthetically,
many big selling organizations in leading con¬
suming markets are operating at a loss by some
producing concerns which are looking not for
profits from the sale of the coal at retail but for
tonnage with which to keep the mines busy. And
if there is a minus instead of a plus quanfitv at
the end of the year this is charged to selling
expenses at the mine, and the retail end is per¬
mitted to break even. But the ordinary retailer
cannot do this. He must sink or swim, according
to the results of his business, judged as a purely
distributing operation. Of course, the operator
would be only too glad to make a profit on his
retail business if he could do it.
“Getting together” has often been referred to
as a business panacea, and getting together for
the purpose of discussing trade conditions and
stimulating the dealers to the extent of maintain¬
ing a moderately profitable price has been prac¬
ticed to some extent in numerous markets. But
it has been found that one of the most difficult
things in the world to put across is a price agree¬
ment that will stick, from any standpoint. If it
is perfectly legal, because it is reached by means
of cost accounting methods, which show every
dealer what he must charge to come out even, it
is likely to break down because of the desire
of each dealer to hold his own business and take
just a little from his neighbor.
What of Consolidation?
The modern idea of business efficiency, as sug¬
gested above, is to keep every piece of equipment
working constantly. In other words, there
should be no waste of labor or effort of any
kind. The ideal plant is one which is able to
handle a maximum tonnage all the time.
I f several yards are running in the same sec¬
tion, without modern equipment, and one yard,
with up-to-date handling machinery, were to be
substituted for them, it is evident that, considered
simply from the standpoint of efficiency, the lat¬
ter would be greatly to be desired.
-And, if this process were to be repeated every¬
where, the results would be similarly impressive.
Wherever there is excess competition, not accom¬
panied by the use of the best possible equipment,
consolidation seems to present all sorts of oppor¬
tunities for saving money in all directions, first
by eliminating unnecessary facilities in the way
of yards and employes, and second by cutting
down the cost of handling the coal, both by the
use of better equipment for doing the work and
by keeping this equipment operating at full capac¬
ity all or nearly all of the time.
In communities where there are too many
dealers, and everybody is on a starvation basis,
there is little incentive, it is true, to put in the
modern kind of coal-handling plants which ap¬
peal to the intelligence of every thoughtful dealer
as being what he ought to have. His profits don’t
justify him in making the expenditure. Hence
he frequently goes along with make-shift facili¬
ties, doing everything by hand, instead of by
mechanical means, and piling up expenses which
make doubly sure the assurance that he won’t
have anything left when he gets through.
In other words, the dealer in such a field is
being ground between the upper and the nether
mill-stones. He needs better equipment for
handling his commodity, but he can’t afford it
because his profits are too small. His profits are
small because he hasn’t the right kind of cquij)-
ment, and the right kind of ecpiipment would
involve too great an investment. And, there it
goes, around and around in the same old circle
of inadequate, antiquated methods and stagnated
ideas.
If consolidation would at once supply the vol¬
ume on which to base the right kind of plant,
as it is plausibly argued would certainly be the
case, it looks as though the idea woidd be well
worth trying out. It would make i)racticablc
improvements in ways of doing things whidi are
now appreciated as desirable, but are postponed
because trade conditions do not seem to warrant
heavy investments.
Cutting Down the Force.
The dealer who has been selling and handling
coal for fifteen or twenty years, with employes
who are similarly expert in that line, and that
only, would hardly welcome the suggestion that
he gracefully retire from the field in favor of
some corporation which would benevolently
assimilate him and his business, and give him in
return stock in the company.
Yet, if said dealer is barely making enough
above operating expenses to pay the cost of liv¬
ing, wliich means that he is breaking even and
not making any money on the investment which
he has in his yard, equipment, stock, accounts,
etc., would not that plan be a better one than
he is using now?
If he has $10,000 in the business, and is taking
out $1,500 in the form of salary, without getting
any dividends on his $10,000; seven per cent on
the latter would be $700, and he would only have
to make $800 in any sort of employment he might
take up to equal his present showing, while his
stock would undoubtedly have greater value in a
forced sale, as a holding in a going and profitable
enterprise, than his outfit would have if placed
upon the market with conditions as they are.
Of course, not every dealer going into a con¬
solidation of yards would be reduced to a condi¬
tion of innocuous desuetude, as far as taking
part in the trade is concerned. Some would be
needed as sales managers, others as solicitors,
etc. ; but the point is that the proprietor of a
business which is barely breaking even now would
have a better proposition by exchanging his prop¬
erty for stock in a profitable company, even if
he had to give up his present work and take
employment elsewhere.
Opportunities for Savings.
A dealer who has been considering, in a tenta¬
tive way, the possibilities of consolidating some
of the leading yards in his community, recently
figured the proposition out in some detail, for his
own satisfaction, and to convince himself that
there could be more money made under that
arrangement than with the concerns referred to
operating independently of each other.
He found that economies could be made in the
following ways :
Duplication of yards would be eliminated —
yards being located at strategic points, and each
yard taking the hauls in that territory.
Thousands of dollars could be saved in rentals
on these yards and in cutting off employes for¬
merly used in conducting them, who no longer
would be needed.
Up-to-date handling equipment, reinforced with
motor trucks for delivery purposes, could be put
in, reducing the cost of moving every ton of coal
put through the yards and making it safe from
the attacks of competitors not so equipped.
Better prices could be obtained from operators,
by virtue of the larger tonnage required.
.Sales expenses would be reduced in view of
the present duplication of effort by solicitors.
•Sales prices could be better maintained, as the
Gonsolidated company would be looked to to
establish market prices because of its control of
the lion’s share of the tonnage.
Making due allowances for all of the items
which he included in his statement, the dealer
was amazed to find on recapitulating that the
plan he had mapped out would mean a difference
of $250,000 a year in favor of the consolidation
of the concerns which he had originally listed.
After that he became, quite naturally, an
enthusiast on the subject.
What do you think of it?
This series of short articles is not to be
considered as an editorial advocating whole¬
sale consolidations. The Black Diamond
makes no recommendations on such sub¬
jects. Instead, it is a .series of articles
written by a reporter. He is giving zvliat
the retailers think; not his ozvn opinions. —
The Editor.
The Jewett, Bigelow & Brooks Company has
added to the equipment of its local offices an auto¬
mobile runabout for the use of the salesmen of
the company in nearby territory. I'he idea is be¬
coming popular and is likely to be followed bv
quite a number of the coal companies. Retail
companies have equipped themselves with large
delivery auto trucks, and the auto idea is also
becoming quite popular.
306
THE BLACK DIAMOND
[October 16
Cutting Fuel Bill and Yet Heating the House.
"Sa\’ing Fuel hi Heating a House” is tlie
title of a paper just issued by the Bureau of
Mines. Its authors are L. P. Breckenridge
and S. B. Flagg.
As a prelude to specific comment on the
good parts of the paper, there are a few words
we would like to say about technical papers in
general. Before doing so, we want to go on
record. Van H. Manning, the new director
of the bureau, has a hard place to fill. He
fills the shoes of Dr. Holmes, whom the coal
people idolized. While granting that this is
a handicap, we venture the opinion that a
certain warm, confiding and friendly note in
Mr. Manning’s southern disposition will, be¬
fore long, make the coal people extremely
fond of him. They may not deify him, as they
did Holmes, but they will get behind him and
work. That is just as well, because it is what
Mr. Manning wants.
.\lso about the authors of this paper. There
isn't a finer specimen of American manhood
extant than L. P. Breckenridge. And as for
"Sammy” Flagg, the nickname is enough. He
passes current with coal men everywhere.
Now that we are talking among friends,
may we inquire: Why on earth is it neces¬
sary to start all technical papers with the be¬
ginning of time and write a history of that
subject in hand from the stone age to now?
Fuel economy is a twentieth century question.
What we want to know is not that the stove
succeeded the open chimney and that radia¬
tors followed the stove. Modern America un¬
derstands tliat, we believe. What we do want
to know is how to make the infernal furnace
liehave and eat less coal or give more heat.
.\nd we want that information without prelim¬
inaries.
Still, we know the peculiarities _ of writers
and the curiously antiquated notion of the
government. The writers want to write that
stone age stuff. This feeling we appreciate be¬
cause we write it ourselves, sometimes, and
think then nothing else will do. Also, the
government goes on the theory that no one
knows anything and must be told. Suppose
we compromise. If it must lie written, put it
in book form once and for all and have done
with it. Later, if necessary, the book can be
referred to in the technical papers. Then, if
anyone hasn’t learned the folklore of coal, he
can get a copy of the book from the superin¬
tendent of documents and read his head off.
But, let’s make the technical papers a little
more to the point Ijy getting more quickly at
what is to be said.
This particular technical paper on house
furnaces has wide interest. It tells how to
measure the furnace and from the dimensions
to tell what sort of a coal will fit it. The di¬
mensions tell, also, how long the fuel bed
should last. The paper goes into a lot of
other important matters, but we will let it
speak for itself. The vital parts of it are:
Size of Boiler and Furnace.
The type and size of boiler or furnace se¬
lected is also an impoitant but not generally
recognized factor in determining fuel con¬
sumption and convenience of operation. Un¬
til the last five years both makers and buyers
of house-heating boilers and furnaces gave
little thought to the fuel to be burned. This
neglect was a natural consequence of anthra¬
cite coal being generally used both in the east,
where much of the heating apparatus was
made, and in many places farther west, and
tests to determine the boiler or furnace ca-
))acity required to heat dwellings of various
sizes were conducted with this fuel. In fact,
the ratings published today for much heat¬
ing equipment are based on the use of one
of the larger sizes of anthracite. The sizes
ordinarily used for domestic service weigh ap¬
proximately 55 pounds to the cubic foot,
whereas bituminous coals weigh from 47 to
52 pounds and coke from 30 to 40 pounds to
the cubic foot.
To warm the air in a house and to supply
the heat lost from the windows and walls a
certain quantity of fuel must be burned in the
heater, this quantity dependin.g on the heat
value of the fuel, the efficiency with which it
is utilized, and on other factors. If to sup-
l)ly the necessary heat recpiires the consump¬
tion of 20 pounds of fuel per hour and the
boiler or furnace is to keep this up for eight
hours without attention, it is evident that the fire
pot must be large enough to hold 100 iiounds
The Bureau of Mines Issues a Paper
Written by Prof. Breckenridge — This
Gives Many Practical Hints on How Coal
of Various Kinds Should Be Fired.
of fuel, and in addition the quantity necessary
to rekindle a fresh charge, this quantity being
ordinarily assumed to be 20 per cent of the
quantity of fuel in the fire pot after the firing,
or in this case, 40 pounds. Hence the fire pot
must hold 200 pounds of fuel and still leave
space for combustion.
If anthracite coal, bituminous coal and coke
are available and each has such heating value
that 20 pounds of it will be required per hour
to supply heat, the fire pot space occupied by
an eight-hour charge of each fuel may be
figured by dividing 200 by the weight per
cubic foot of each fuel, the space thus calcu¬
lated being approximately 3.0 cubic feet for
anthracite, 4.0 cubic feet for bituminous coal,
and 5.7 cubic feet for coke. Therefore, if the
fire pot were designed for anthracite, it would
hold coke enough for a firing of approximately
five hours instead of eight.
Depth of Fire Pot.
Not only is the capacity of the fire pot im¬
portant, Init its depth should receive consid¬
eration. If the full rated load is to be carried
without attention to the fire for a minimum
period of eight hours, the depth of the fuel
bed should be at least 12 inches. A heater
that is to burn coke should be designed for a
greater depth — probably 24 inches — on ac¬
count of the bulkiness of the fuel and the dif¬
ferent combustion conditions required for
burning it satisfactorily. In fact, one of the
largest uianufactnrers of boilers for heating
iiouses I).v steam or hot water now designs
such equipment for a fuel bed 18 inches deep
when anthracite is to be used. As regards
necessary size of fire pot, another detail that
affects both economy and convenience of op¬
eration is the combustion space above the fuel
bed.
Any unburned combustible gases that leave
the fire pot are rapidly cooled in passing over
the heat-absorbing surfaces between the fire
pot and the smoke pipe, and their temperature
is quickly brought below that necessary for
ignition. If either anthracite coal or coke is
to be burned, a relatively small combustion
space above the fuel bed will be required, be¬
cause combustion takes place in or close to the
fuel bed. If liituminous coal is to be used,
however, more space should be provided for
burning the combustible gases rising from the
fuel bed, or a considerable part of these gases
will escape unburned, the flue surfaces will
liecome coated with soot, and the heat losses
will be large.
Passages from Fire Pot to Smoke Pipe.
Another important detail, if liituminous coal
IS to be used, is the cross section for the gas
passages between the fire pot and the smoke
pipe. If the passages are not large enough the
draft may be cut down by the. accumulation
of soot in the flues possibly to such an extent
that the fire will go out. Also, if bituminous
coal is to be used, the flues should be of such
size and so arranged as to invite frequent and
easy cleaning.
Care of Furnace.
Many furnaces or boilers are operated in a
haphazard way — drafts are opened or coal is
put on when the house becomes cool, and then
the fire is allowed to burn rapidly until either
the rooms are too warm or the fuel bed is
burned down too far to kindle properly a new
charge of coal.
Such firin,g is always wasteful. The heater
should receive regular attention, and if the
demands for heat are intelligently anticipated,
as they ordinarily can be, the house can be
warmed with minimum trouble and fuel. When
the rooms become too warm the fire should
be checked by stopping the admission of air
under the grate and decreasing the draft by
opening the "check damper.” If, as often is
done, tlie ash-pit damper or the ash-pit door
be allowed to remain open and the draft re¬
duced by opening the fire door, the combus¬
tion of the fuel continues, although at a slower
rate, but the cold air entering the fire door
chills the heater so that little heat is realized
from the coal.
Sometimes the draft is so strong that the
difficulty of controlling the fire is increased,
especially when the demand for heat is small
or the fire is to be banked. To facilitate con¬
trol under such conditions it is usually advis¬
able to have, besides the check damper, a plain
damper in the smoke pipe. This damper should
fit the smoke pipe loosely and must never be
entirely closed; during most of the heating
season it can be kept partly closed, but during
severe weather, when more heat is required, it
can be opened wide. Sometimes the draft may
be sufficient to burn the necessary quantity of
the particular fuel used. If such a condition
is always noticed in severe weather, the heater
may be too small, the smoke pipe may be
choked or be poorly fitted to the heater or to
the chimney, or the chimney may be too small
or be obstructed by soot or debris. As to the
size of smoke pipe and chimney, one authority
says that the cross-section area of the smoke
pipe should be one-eighth of the grate area,
that the diameter of a round chimney should
be two inches more than that of the smoke
pipe, and that if the chimney be square, the
inside length of a side should be inches
more than the diameter of the smoke pipe.
If the draft trouble proves to be due to
leaky conditions or to obstructions, it can
readily be corrected. If the heater or the
chimney be too small, the difficulties may be
lessened by either firing more frequently and
keeping the fuel bed thinner, or by using
larger coal, of fairly uniform size, in order that
the air may more easily flow through the fuel
bed. Conversely, if the draft is very strong, a
smaller size of coal may possibly be used to
good advantage.
Firing Anthracite.
To get the best results in firing anthracite
the following recommendations are made:
Keep the fuel bed thick so that it will not
burn through in spots and admit a large ex¬
cess of air.
If there is a bright bed of coals over the
entire grate, as there should be before a heavy
charge is fired, some of the burning coal should
l)c pushed to one side or end of the grate —
the part nearest the opening where the gases
leave the fire pot — ami the hed of live coal
made thicker there. Then fire the fresh charge
so as to make the bed of approximately uni¬
form thickness and yet leave visible a bright
spot of live coal to ignite the comhustible
gases coming off the freshly-fired fuel. In this
way combustible gases from the coal will be
burned gradually and will not accumulate
in the fire pot and burn with an explosion.
If the fire is low, take care not to put it out
liy throwing on too much fresh fuel. Fire
lightly, and allow each firing to become ig¬
nited before fresh coal is thrown on.
Firing Bituminous Coal.
The wide differences among bituminous
coals make it impossible to give more than
general suggestions for firing them. How¬
ever, certain points of difference between the
methods of firing these coals and anthracite
may be pointed out.
Do not spread fresh coal over the entire
surface of the fire. Bituminous coal requires
more air immediately after firing than does
anthracite coal or coke, and covering the en¬
tire fire not only decreases the flow of air
through the fuel bed, but also lowers the
temperature in the fire pot enough to cause
incomplete combustion of the volatile matter
distilled from the coal, and, consequently, a
loss of heat up the chimney.
Use some coking method of firing; that is,
work the partly burned coal, from which the
gas has been driven, to one part of the fire
and throw the fresh coal on the remaining
portion. The fresh fuel then ignites slowly,
the combustible gas is driven off gradually,
and the live coals that are exposed on one
part of the fire heat this gas and the air
coming through the fuel bed so that more of
the gas is burned before it leaves the fire
pot. If, on the other hand, fresh coal is
spread uniformly over the entire surface of
the fire, much of the gas driven off is not ig¬
nited and escapes unburned.
Keep the flue surfaces clean and the clean¬
ing doors tightly closed. The cleaning of the
No. 16]
THE BLACK DIAMOND
307
flues should be given regular and frequent at¬
tention or it is apt to be overlooked entirely.
Banking the Fire.
When preparing the fire to last overnight
or for a similar length of time, push some of
the burning coal aside and fire the fresh charge
so as to leave a bright spot visible to ignite
the distilled gases. The drafts should then be
allowed to stand open for a short period, pos¬
sibly half an hour, before they are closed for
the night, so that part of the volatile matter
or gases in the coal can be driven off before
the air supply is greatly reduced. In adjust¬
ing the air supply for the night, use the ash¬
pit damper or slide and the check damper in
the smoke pipe. If the ash pit is tight, the
firing door can and should be kept closed, or
part of the heat of the fuel will be wasted in
heating the cold air entering above the fire.
Firing Coke.
Coke can not be burned in the same way as
either anthracite or bituminous coal; the
heater should be specially designed for burn¬
ing it or satisfactory results may not be ob¬
tained. Under a low draft coke ignites less
readily than either anthracite or bituminous
coal. If the demand for heat is small, open
the draft doors or slides and let at least part
of the fuel charge become thoroughly ignited,
then close them and cut off the air supply.
Experience alone will show how long the fire
may be left in this condition; it will build up
quickly on the reopening of the draft slide, but
if left too long it will go out.
In preparing the fire for the night, do not
cover the fuel bed with the fresh charge and
then set the draft, but wait for the fuel to
become ignited, otherwise the fire may die out.
After firing the charge, open the draft slides
or door and allow the coke to become fairly
well ignited, then restrict the draft enough to
insure the fuel bed being in the desired condi¬
tion in the morning. The extent to which the
draft .should be restricted must be learned by
experience.
Port of Baltimore.
(Concluded from page 303.)
the distance and the business agreement that
governs. As Baltimore is one of the best
equipped harbors in which bunkerage can be
arranged from the piers there is not so much
"alongside” loading of coal as there is in other
ports. What stevedoring is done takes a usual
rate of thirty-five to forty-five cents on the ton.
And upon this smaller craft in the coal loading
and delivering problem it might be well to state
that quite a number of the commercial concerns
who have wharves in the Baltimore harbor do
much of their own coal transference. They own
their scows, barges and other bottoms and have
them towed by various means from the point of
loading to discharging. The towing rates within
the city limits ranges for scows from $1.50 to
$3.50.
The Chesapeake "Skip-jacks” also play a part
in coal deliveries. These luggers go into all sort
of places and carry all sort of freight, so when
a ton or a dozen tons of coal is needed by some
out-of-the-way place or person what better
freight could they haul on a down the river trip.
About the Statistics.
Actual figures as to the growth of the coal
business from Baltimore are about the hardest,
cussed little details to dig up. Usually when one
is nosing about for news, statistics is the opening
bomb that the other fellow wants to fire at you.
Long trailing columns, telling much in actualities
and little that the layman has time or inclination
to digest, are not part nor parcel of the Balti¬
more scheme. "Here is what we are doing now.
It is a whale of a business. We don’t care what
we were doing ten years ago. We are concerned
with the present.” This is the general attitude.
September figures of this year, when the coal
exports reached the grand total of 201,239 tons,
without any consideration for the amount that
was sent coastwise or used “in the harbor,” is a
fair sample. This was under the August ship¬
ments of 202,627 tons.
This last was the high tide of exports from
the port for all time. In May there was general
comment made when 197,794 tons were shipped,
and those who were interested "rose to remark”
that a new record had been established. The
previous high figures were made on September
shipments of 1914 when 128,761 tons went over
the side destined for foreign ports.
The scope of the export trade of Baltimore is
also shown by the figures, in tonnage, of destina¬
tion which were as follows : Italy, 74,823 ;
Sweden, 36,499; Spain, 13,792; France, 17,499;
Argentina, 10,782 ; Brazil, 6,857 ; Costa Rica,
6,919; Egypt, 7,031; Martinique, 919; Venzuela,
337; Honduras, 1,377; Peru, 4,604; Cuba, 16,800,
and Panama, 3,000.
The bunkering trade that Baltimore takes care
of can be judged also from the September record,
when ninety-six vessels under foreign registry
arrived and eleven under the Stars and Stripes.
From the nearest figures that can be obtained
this harbor is now doing between five and six
million tons of coal business annually. With two
piers that will permit of the handling of ten or
more millions of tons extra in the course of
another year can it be said otherwise that Balti¬
more is high in her hopes and placed much in her
future expectations?
Uncle Sam, however, keeps track of the coal
that passes out from his borders and from the
source at the Custom House the following figures
were shown as the tonnage of coal that has moved
from, this harbor for the past ten years:
Year —
1905 ...
i9oe . . . .
1907 ...
1908 . . .
1909 ...
IfilO . . .
1911 ...
1913 ...
1913 ...
1914 . . .
Coal, Tons.
. . 341,107
. . 458,083
. . 559,880
. . 347,489
. . 332,016
. . 502,040
. . 628,522
. . 632,398
. . 873,413
. . 945,308
Rate Hearing Postponed.
Columbus, Ohio, October 14. — {Special Corre¬
spondence.)- — Hearing of the coal rate case in
which the Hocking Valley Railway Company is
defendant, scheduled for resumption October 12,
has gone over until the 19th inst. With both
sides given ample time to prepare, it is believed
to be the temper of the Utilities Commission that
the matter be thrashed out thoroughly and with¬
out unnecessary delay, once the proceedings start
again, to the end that the commission may get
rid of this vexed question for a long time to
come. The prosecution will base its case on what
has been found in the examination made by the
committee of experts who spent a month or more
going over the records at the railroad company’s
general offices.
It is stated that this committee will claim that
coal can be hauled from Nelsonville to the fol¬
lowing points at actual cost per ton herewith
given: To Toledo, cost 45.68 cents, a distance of
181 miles, present rate eighty-five cents; to Fos-
toria, 39.71 cents, 150 miles, present rate eighty
cents ; to Marion, 31.5 cents, 107 miles, present
rate seventy cents ; to Delaware, 25.83 cents,
eighty-five miles, present rate seventy cents ; to*
Columbus, 20.55 cents, sixty-one miles, present
rate sixty cents. A charge of 1.88 cents per ton
is added to the Toledo haul cost when the coal
is unloaded at the lake docks.
Action of the railroads in recently announcing
an increase of differential from twenty-five cents
to forty cents in favor of Ohio coal, as opposed
to West Virginia, by advancing rates in the lat¬
ter state, is expected to have no bearing on the
hearing. The plaintiffs claim that what they want
is a reduction on Ohio rates. So far it has
not been made known what other coal com¬
panies are behind the Sunday Creek Company,
which intervened in the action originally brought
by officers of the Ohio United Mine Workers,
and virtually taken the action out of the hands
of these plaintiffs.
Labor Outlook in Ohio.
Columbus, Ohio, October 14. — (Special Corre¬
spondence.) — Thousands of miners in the Hock¬
ing Valley would seem to be in for an endurance
contest the coming winter. The biggest factor
in that field, the Sunday Creek Company, an¬
nounce that mines will continue to remain closed
unless they can treat directly with their men on
a mining scale that will eliminate alleged dis¬
crimination in favor of eastern Ohio. It is stated
that the New Pittsburgh and other companies are
likely to close down on the same issue. At the
present time nineteen big mines are closed down,
and the per cent of idleness for the winter is esti¬
mated at eighty per cent of the usual output of
the valley.
With an empty treasury, the officers of the
United Mine Workers are much concerned over
the situation. The national authorities of the
union have been investigating labor conditions in
the valley within the past few days, and are
seeking to devise relief measures that will pre¬
vent suffering during the cold weather and at
the same time hold the union forces intact. Al¬
though needs at many points are as urgent as at
any time heretofore, public relief measures
through the adjutant general’s office seem to
have languished. The appeal made a few months
ago brought seventeen carloads of provisions
from different cities and a number of miscellane¬
ous shipment. These donations were valued at
about $2,000, and were distributed among some
14,000 people.
T. P. Fowler Is Dead.
Thomas P. Fowler, former president of the
New York, Ontario & Western Railroad, died on
Tuesday of this week at Warwick, N. Y. Mr.
Fowler was born in Newburgh, N. Y., on Octo¬
ber 26, 1851. He .graduated from the Columbia
law school in 1874, and was admitted to prac¬
tice in the same year.. He practiced law in New
York City for five years before he took Up rail¬
road work, being appointed receiver of the She-
nango & Allegheny Railroad in 1884. Two years
after his appointment as receiver of this rail¬
road, he returned the property to the stockhold¬
ers in a greatly improved condition, financially
and otherwise, and the United States court for
the western district of Pennsylvania, in discharg-
in.g the receiver, ordered the statement to be
made a part of the order of discharge and record
under court, that the receivership in question
had been of the most satisfactory character and
that the receiver had “discharged very arduous
duties with fidelity, great intelligence and
with promptness, and was entitled to the grati¬
tude of the creditors, the stockholders, the banks
and of the court.” This railroad afterwards be¬
came a part of the Bessemer & Lake Erie line
between Pittsburgh and Conneaut harbor. Mr.
Fowler also served as receiver of the Mercer
Coal Company, which owned large tracts of bitu¬
minous coal land in Pennsylvania, the securities
of which were largely owned in England.
In 1885 he was retained by a committee of the
stockholders in England and Holland, who were
largely interested in the New York, Ontario &
Western Railway. That company had become
involved with the West Shore Railroad in many
directions and had .guaranteed terminals and
other obligations amounting to a very large sum.
The West Shore road was bankrupt and in the
hands of the receivers and the future of the
Ontario & Western at that time was far from
being bright and encoura.ging. The stock was
selling at $5 and $6 a share, and the bonds could
not find a market at any price. Mr. Fowler’s first
efforts after takin.g hold of the property was to
direct it towards litigation. Through negotiation
and diplomacy he finally succeeded in securing a
release from many onerous guarantees and when
the West Shore Railroad was taken over by the
New York Central, the position of the New
York, Ontario & Western was strengthened and
through important contracts its future was as¬
sured.
In 1890 a coal line connectiag the Ontario &
Western main line with Scranton and the an¬
thracite coal fields was constructed, Mr. Fowler
finding necessary capital for the project. This
connection added very largely to the value of
the Ontario & Western properties, soon there¬
after increasing the company’s gross earnings by
lOO per cent and its net 400 per cent. Mr. Fow¬
ler was active as head of the Ontario & Western
until 1912, when he resigned. He passed through
two or three very exciting anthracite strikes, but
was always regarded as one of the ablest offi¬
cials interested in anthracite carrying roads.
Fayette Mine Sold.
Word comes from Clarksburg, W. Va., that
the property of the Fayette Coal Company at
Dola was sold last week to H. B. Dowler, of
Clearfield, Pa. The sale was made by J. Edgar
Long. The mine is said to contain 1,250,000,000
tons of unmined coal and has modern top works.
The coal is mined by compressed air machinery
and has been getting out 500 tons a day. The
coal is Pittsburgh vein seven and one-half feet
thick. It is the intention of the producers, ac¬
cording to announcement, to increase the output
to 1,000 tons a day. Mr. Dowler, who purchased
the property, was formerly general superintend¬
ent of the Penn-Mary coal mine at Heilwood, Pa.
308
THE BLACK DIAMOND.
[October 16
The Mine Clearing House.
Inspection of Coal Properties.
Editor Black Diamond:
In order to promote a rivalry in np-keep of
the different mining plants' under the direction
of the Pennsylvania Coal Company and the Hill¬
side Coal & Iron Company, which companies are
under one general management, the management
has carried on for a number of years a system
of competitive inspection which should interest
the readers of Black Diamond.
At some convenient time during the spring,
usually beginning about April 1st, all the col¬
lieries of these two coal companies are thor¬
oughly inspected by all of the district superin¬
tendents, principal engineers, coal inspectors, the
general suiierintendent of each of the coal com-
jianies and the general manager of both com¬
panies. The time given to the inspection of each
colliery depends somewhat upon the size of the
operation, but each colliery receives at least one
day of inspection and this inspection includes
every operating detail, both underground and on
the surface.
After all of the collieries belonging to the
company have been inspected, each niember of
the inspection party makes out a detailed report
to the general manager in which report he is ex¬
pected to criticize freely the properties inspected
and also to make any suggestions that he thinks
would better the conditions and improve the op¬
eration of the properties. Based upon these in¬
dividual reports a general inspection report is
then made out in the office of the general man¬
ager and each general item of each property in¬
spected is graded upon a basis of 100. Each
item thus graded is also commented upon, the
defects pointed out, if there are any, and com¬
mendation bestowed if it is warranted. At the
end of the detailed report general criticisms are
given applicable to all of the different collieries
under the same management, these being the
general criticisms and suggestions of the general
manager Such an inspection means that at least
once every year everything about a colliery is
put into as good shape as possible, but the man¬
agement distinctly stipulates that the regular op¬
eration of the colliery shall not be interfered with
in order to make a favorable showing upon in¬
spection.
After the inspection has been concluded all the
members of the inspection party are the guests
of the management at an outing and dinner.
The following are examples of how the com¬
ments are made, the number in the parenthesis
being the grade awarded upon the basis of 100 as
perfection :
Fire appliances-. (75) Not in as good shape as
they should be.
Boilers: (91) Not nearly so good as last year.
Certain points severely criticized by many in the
party. The recording chart showed seventy-five
pounds pressure, while steam gauges registered
eighty. Unusual in boilers of this capacity. It
may possibly be due to location of gauges be¬
tween boilers. Three water gauge glasses out
and those in place too dirty to be usable. Con¬
ditions should be greatly improved.
Mine workings: (98) Mine deserves very high
rating, as mining was being carried on so as to
obtain a higher percentage of coal than usual
and this is done without sejueezes and with a
minimum loss of life. This colliery is particu¬
larly to be commended for its high showing in
the underground operations.
Stable: (85) Poorly ventilated. Not white¬
washed. Water lacking in troughs. Stable con¬
ditions should be greatly improved.
New Harness for Mules.
Editor Black Diamond:
A new design of harness for mine mules has
recently been brought out by J. W. McCabe,
stable inspector of the Lehigh Valley Coal Com¬
pany. This harness gives additional comfort to
the mule, is more economical to make, and in¬
creases the safety of the mule by shielding the
entire crown and the front of the face and eyes,
this protection being particularly useful in low
coal where the mules are apt to strike the fore¬
head against the roof. The bridle also protects
the side of the head above the jaw, which is a
particularly vulnerable point, for a mule injured
at this point, can not masticate its food and,
therefore, declines. Although the same amount
of material is used in the new head gear and
bridle, the new harness can be made much more
quickly than the old by the use of tubular cop¬
per rivets instead of hand stitching. The cor¬
rectly adjusted collar is also shown fitting tightly
about the neck so that it will not sag and is well
connected to the hames when the mule lowers
his head.
Only one-half of the usual amount of leather
is used in the back band, which is also made with
The Mule’s Harness
one-fourth the labor; the ends are fitted with
triangular irons connecting them to the traces
and belly band. These irons replace the rein¬
forced double leather loops, generally used to
suspend the traces, and thus save leather and in¬
crease the life of the harness. Chain traces are
used instead of leather. The breeching is con¬
nected to the traces by carrying chains, which
New Mule Headgear.
run slightly forward while the traces hang slack,
but when the mule is pulling the carrying chain
should hang vertically. The breeching and hip-
straps are all smaller than the style formerly used,
and in addition to saving a considerable amount
of leather, can be made much quicker than the
breeching formerly used. Stable Boss.
Last Change in Rates.
Cleveland Ohio, October 12. — (Special Corre¬
spondence.) — Information has been received here
to the effect that the Louisville & Nashville
Railroad Company has assented to the proposed
increased in the differential between the eastern
Ohio and West Virginia rates. This road, it was
September —
said, is the only one that had continued to hold
out against the advance. The tariffs have been
printed and will be filed with the Ohio Public
Utilities Commission within a few days, it is
said. The eastern Ohio operators held a meeting
Monday, when this matter was discussed. Al¬
though plans had been made to file a complaint
with the commission on that day, if the decision
of the roads had not been received, this step was
delayed when it was learned that the roads were
so close to an agreement. Everything is in read¬
iness, however, and action will follow further
delay in filing the tariffs.
The increase on the rates to Cleveland amounts
to seven cents per ton and fifteen cents on the
rates to Toledo, with proportionate increases to
other points. As the B'airmont rate to Cleveland
is now $1.15, the increase will make it $1.22, while
the Pocahontas rate will be $1.52 instead of $1.45.
The same increase will be made from eastern
Kentucky points.
W Idle this increase is not sufficient to equalize
the difference in freight and cost of production
between the eastern Ohio and West Virginia
coals, it will probably place the Ohio product in
a better position in relation to the markets.
September Anthracite Output.
The shipments of anthracite in September as
compiled by the Anthracite Bureau of Informa¬
tion amounted to 5,518,771 long tons, an increase
of 187,940 tons as compared with the previous
month, and a decrease of 927,421 tons as com¬
pared with September, 1914.
The total shipments for the nine months of
1915, ending with September, have amounted to
47,079,111 tons, as compared with 50,067,581 tons
for the same period in 1914, and 51,281,885 tons
in 191?,.
The decrease of 2,688,470 tons in the shipments
from 1914 to 1915 indicates that much of a short¬
age in the fuel supply for the coming winter, and
according to reports from sales agencies and
dealers, in the principal markets the shortage is
largely in the cellars of domestic consumers who
have been less forehanded than customary and
have not taken advantage of the summer dis¬
counts to provide their winter supply. There is,
because of these conditions, excellent reason for
the belief that before winter is over something
of a fuel famine will be experienced. Domestic
consumers who have not stocked their cellars
should do so without loss of time. The capacity
of the anthracite mines is limited, and it is
almost impossible to make up between now and
the first of January the deficiency of output due
to the small purchases of coal during the past
summer.
The promised scarcity of anthracite fuel applies
to the steam sizes as well as to the domestic
sizes, and a word of warning along this line is
opportune. The total tonnage produced during
the summer was much below normal, and as the
colliery consumption when the mines are work¬
ing half time is nearly as much as when working
full time a larger percentage than normal of the
smaller sizes produced has been consumed at the
mines. If bituminous coal is scarce and high
priced it will tend to increase the demand for
anthracite at a time when the supply is inade¬
quate to meet normal requirements. Bituminous
coal probably will be scarce, largely because of
the shortage of labor at the mines, caused by the
exodus of mine workers to the scenes of war in
Europe.
It would be well, therefore, for consumers of
steam sizes to lay in as much as possible before
severe winter weather arrives.
Production figures are :
-Total Shipments-
Lehigh Valley R. R .
Central R. R. of New Jersey .
Delaware, Lackawanna & Western R. R.
Delaware & Hudson Co .
Pennsylvania R. R .
Erie R. R .
N. Y., O. & W. R. W .
Year —
Philadelphia & Reading R. \
Lehigh Valley R. R .
Central R R. of New Jersey.
Delaware, Lackawanna & V\ e:
Delaware & Hudson Co .
Pennsylvania R. R .
Erie R. R .
N. Y., O. & W. R. W .
191.5.*
1914.*
1915,t
1914. t
1915.
1914.
768,165
969,096
127,553
132,200
895,718
1,101,296
965,840
1,125,305
127,437
165,022
1,093,283
1,290,327
498,009
666,961
128,228
167.6'43
626,237
824,604
688,963
758,198
131,477
134,900
820,440
893,098
604,821
565,646
132,771
82,328
737,592 .
647,974
388,801
497,0*2
78,786
78,8.56
467,687
575,898
595,506
597,710 .
123,245
130,240
718,751
727,950
141,522
165,787
17,641
19,258
159,163
185,045
4,651,633
5,345,745
867,138
900,447
5,518,771
6,246,192
6,988,436
7,754,584
1,007,369
1,114,968
7,995,805
8,869,552
8,484,652
8,570,553
962,811
980,246
9,447,463
9,550,799
4,635,291
5,430,013
1,001,508
1,130,036
5,636,799
6,560,049
5,696,191
5,959,126
1,095,000
1,179,097
6,791,191
7,138,223
4,604,377
893,938
750,216
5,970,324
5,354,593
4,078,691
652,031
618,6.34
4,233,909
4,697,325
4,889,892
5,164,721
926,768
1,004,807
5,816,660
6,169,528
1,335,050
1,543,391
151,910
184,121
1,4.36,960
1,727,512
40,687,776
43,105,456
6,691,335
6,962,125
47,379,111
50,067, .581
Totals . 40,687.776
COAL ON HAND AT TIDEWATER SHIPPING PORTS.
September .‘10, 1915 . .
August 31, 1915... . .
. . 633,338 tons
. 653,496 tons
Decrease . 20,158 tons
*‘Buckwheat No. 1 and larger sizes. tSizes below buckwheat No. 1.
No. 16]
THE BLACK DIAMOND
309
News Local to Chicago.
Karl Jun.gbluth, Jr., vice-president of the Har¬
lan Coal Company with headquarters in the
Starks Building, Louisville, Ky., was a visitor to
the Chicago trade on Tuesday of this week.
E. M. Peters, president of the Hamilton-Otto
Coke Company of Hamilton, Ohio, was in Chi¬
cago this week to attend a meeting of the coal
men and the railroads, relative to a proposed ad¬
vance on coke to take effect on November 1st.
James F. Callbreath, secretary of the Ameri¬
can Mining Congress, will be in Chicago on
Monday of next week. It will be recalled that
the Congress is to hold a great mining exposi¬
tion in Chicago at the time of the next annual
meeting. One of the purposes of Mr. Call-
breath’s visit at present is to arrange for the
appointment of the committee which will have ^
charge of the exposition a year hence.
Rush C. Butler, the Chicago attorney who has
been so much interested in coal cases of late,
went down to Springfield on Monday night, ■
where he was one of the principal speakers at the
banquet of the Illinois Coal Operators’ Associa¬
tion. His theme was the powers of the Federal
Trade Commission and the proposal to make an
assault on the Sherman Anti-Trust Law. His ad¬
vice was that the powers on the Trade Commis¬
sion at present are so large they have not yet been
fully tested. He thought it inadvisable to do
anything to the Sherman Law until the helpful
character of the commission can be ascertained
by the further development of powers which
Congress has given the commission. He was
inclined to advise against the change in the
criminal statute since business does not want to
appear in the light of advocating that the govern¬
ment grant business the power to do what is now
considered a criminal thing. Rather, he thought
the law against criminal action should stand to
catch those who want to do something which is
not contemplated by the helpful plans which the
Trade Commission is expected to put into effect.
At the annual meeting of the Illinois Coal Op¬
erators’ Association, which was held in Sprin.g-
field. Ill., on Monday and Tuesday of this week,
C. M. Moderwell was re-elected president, and as
a matter of fact the entire list of officers was
re-elected for the ensuing year. Some routine
matters were under discussion, among other
things being whether the association should con¬
tinue its affiliation with the American Mining
Congress and whether it should conform to the
suggestion of the miners that the coal trade attack
the Sherman Anti-Trust Law and ask Congress
to so modify as to emasculate it. The association
without practically any discussion of the matter
decided that it wanted to retain its affiliation with
the American Mining Congress and an appropria¬
tion was voted to pay its share of the expense
of the Congress for the ensuing year. On the
matter of joining the miners to attack the Sher¬
man Anti-Trust Law, the Association decided to
appoint a committee which would meet with the
other operators at the Blackstone Hotel in Chi¬
cago on Thursday of this . week. On Monday
night the annual banquet of the association was
held, and as customary, it was one of the coal
events in Illinois for the year. Mr. Moderwell
acted as toastmaster, and the occasion was as
felicitous as usual.
Some time ago the international officials of
the United Mine Workers of America sent a
letter to many of the leading operators in the
country and to all of the coal operators’ asso¬
ciations, suggesting that the union and the coal
operators join in the movement to make an ap¬
peal to Congress at its forthcoming session to
change the Sherman Anti-Trust Law in such a
way as to remove all hindrances to proper combi¬
nations in the coal trade when the purpose is not
vicious or monopolistic in tendency. There was
no way to get the consensus of opinion without a
meeting of the representatives from coal opera¬
tors’ associations. Accordingly, on the suggestion
of Charles S. Keith, president of the Southwest¬
ern Coal Operators’ Association, a meetin.g was
held at the Blackstone Hotel in Chicago on
Thursday of this week. Mr. Keith and Mr.
Fleming represented the Southwestern Coal Op¬
erators’ Association ; Carl Scholz represented the
Illinois Association; Hugh Shirkie and J. C.
Kolsem represented Indiana; C. B. Ebbert of
Chicago was authorized to represent the West
Virginia operators and H. C. Adams was there
to represent Ohio.
A very important meeting of the Chicago Coal
Merchants’ Association was held on Tuesday of
this week. The purpose of the meeting was to
discuss, among other things, the readjustment of
coke rates from by-product and gas-house plants
in Central Freight Association territory. Higher
rates from Hamilton, Ohio, thirty-five cents,
from Indianapolis twenty cents, and from Evans¬
ville thirty-five cents and other points to Chi-
ca.go have been published in tariffs which are to
become effective November 1st. This advance is
a part of the general readjustment of coke rates
which has been under discussion for the last
three years. After repeated conferences railroads
and the coke people had about agreed, it was
supposed, on the plan of action. The Coal Mer¬
chants’ Association in order to inform the mem¬
bers as to what was in progress asked Mr. Har¬
per of the New York Central Lines and other
representatives to be present and explain the
situation. Mr. Harper said that the railroads
were trying to work out a zone system. They
arranged rates which would be fair to everyone.
.\s near as they could arrive at a basis, the rail¬
roads had taken into consideration the freight
rate paid on the coal from the mines to the coke
oven and then the distance from the coke oven to
the principal markets to be reached. They had
worked out a zone system where they figured
that nearly everyone was on an equal basis, not
only as far as Chicago is concerned, but all the
territory in the west. After an elaborate dis¬
cussion the association decided to appoint a com¬
mittee composed of P. C. Richards, of Richards-
Evans & Co. ; J. L, Makemson, of the Atwill-
Makemson Coal & Coke Company, and C. D.
Caldwell, of the Solvay Process Company, to dis¬
cuss the matter and see whether a formal
protest by the Chicago Coal Merchants’ Asso¬
ciation should b'e made. This committee held a
meeting in Chicago on Thursday which was at¬
tended by some of the members of coke produc¬
ing companies.
At the last meeting of the Chicago Coal
i\Ierchants’ Association, the following new mem¬
bers were added to the list ; South Robey Coal
Company, William Mensching Coal Company,
Vander Wagen Bros., Euwema Coal Company,
Cicero Fuel & Building Material Company, V. C.
Gardner, Roseland Coal, Wood & Ice Company,
John Har.garten Sons, Bunning Coal Company,
Peterson Bros., North Side Fuel Company, O.
Jay Smith, Windsor Park Coal Company, Cir¬
cuit Supply Company, E. E. Kendall Company,
E. C. Donnellan Lumber Company.
The Switching Case.
Concerning the closing of a famous Chicago
case, N. H. Kendall, commissioner of the Chi¬
cago Coal Merchants’ Association, says ;
“Members will recall that during the past
three years a great deal has been said at asso¬
ciation meetings and a number of general letters
issued, relative to the proposed increases in coal
rates to industries located on the C. M. & St. P.
Ry. in the Chicago switching district, the case
being commonly known as the Inner Zone
Sv^itching Case. The effective date of the pro¬
posed increase was December 15, 1913.
“After deliberation and investigation into the
situation, the association filed a protest with the
Interstate Commerce Commission against the ad¬
vances in interstate rates, and with the Railroad
and Warehouse Commission of Illinois as to in¬
trastate rates. Both cases were given prompt
hearing and commissions were also prompt in
rendering their decisions.
“The Interstate Commerce Commission or¬
dered that the advanced tariffs be cancelled, and
that the lower rate remain in effect. There was
no appeal from this decision on the part of the
C. AL & St. P. Ry., and the industries located
in the district above mentioned, have been en¬
joying the lower basis, effecting a saving of ap¬
proximately seven and one-half to eight cents
per ton on their entire interstate tonnage han¬
dled during the past three years.
“The Railroad and Warehouse Commission of
Illinois also rendered a decision, the substance
of v/hich is identical with that of the Interstate
Commerce Commission, i. e., that the request for
advance in rates be declined. From this decision
the C. M. & St. P. Ry. appealed, and after nearly
a year the case was tried in the Circuit court of
Sangamon county, where the association was
again successful.
“The C. M. & St. P. Ry. being given the right,
under the law to appeal from this court, did so,
and the case was finally handled in the Supreme
Court of Illinois some months ago. The asso¬
ciation again succeeded in securing a favorable
decision.
“The C. M. & St. P. Ry. has advised that it
will obey the order of the Railroad and Ware¬
house- Commission as upheld by the Circuit and
Supreme courts, and accept claims for the over¬
charge which it has been collecting for some
time past.”
G. H. Lill, Jr., Dies.
Word was received on Thursday that George
H. Lill, Jr., of Chicago, had died at 9:30 a. m.
that day at Pasadena, Cal., where he has been
spending much of his time for the last year or
more. Heart failure is given as the cause. He
was forty-seven years of age.
“Bert” Lill was one of the best known coal
men in Chicago. He was associated for a number
of years with his father, George H. Lill, Sr., in
the coal business on the north side of Chicago.
The corporate name of the concern was the Lill
Coal Company.
Then there was formed the Lill-Robinson Coal
Company, a large corporation made up of a
consolidation of some five different retail com¬
panies. Of this Mr. Lill was the vice-president
and the executive force.
This company was sold out to the City Fuel
Company, which was then its largest competitor.
“Bert” Lill went with the larger concern, filling
an executive position and being one of the vice-
presidents and one of the directors.
Shortly after the Consumers Company was
formed Mr. Lill retired from it. He became in¬
terested in real estate in Chicago and the west
and was quite happy in his new selection. He
was so much 'encouraged by the western pros¬
pects that he announced his intention to move
there to stay. More recently he was interested
in an irrigation project.
Dollar’s Worth of Coal.
(Concluded from page 304.)
cents to evaporate the 1,000 pounds of water,
with 154 pounds of coal.
This demonstrates the relative value from
a price and performance point of view, with
Class B showing a trifle more economy than
either the lower or higher priced coal.
There are, however, other factors to be
considered in determining which is the more
economical fuel for the plant to buy. In the
first place, the more coal you use the more
bin room must be provided and the more
material you are obliged to handle. If your
plant has been using 100 tons a day of Class
A coal and word comes from the big office
that expenses must be reduced, you decide
to try to buy coal cheaper, or cheaper coal.
Of the Class A coal you handle in 100 tons
of coal, and you handle out 10% or 10 tons of
ashes, a total of 110 tons of material you are
obliged to handle each day.
To evaporate the same amount of water
with Class B coal you handle in 110 tons of
coal and must dispose of 15.4 tons of ashes,
a total handling of 125.4 tons of material.
And with Class C coal you are obliged to
handle in 127 tons of coal from which would
result at least 18% or 22.86 tons of ashes, mak¬
ing a total of practically 150 tons of material
handled.
This means that to use the lower priced coal
would necessitate providing for the handling
and disposing of 40 tons a day more material,
or by using the medium priced coal 15 tons
a day more material, than with the use of the
high priced coal. It costs money to handle
material, whether it is coal or ashes.
Moreover, the decreased wear and tear of
the plant equipment, increased efficiency due
to satisfied employes, ability to force the plant
in emergencies, and still other factors, which
while they cannot be measured so accurately
as the price and performance, would make
it appear that the use of the higher-priced
more efficient coal would be the more econom¬
ical at the range of prices mentioned.
O. W. Gardner, sales manager of the Chesa¬
peake & Ohio Coal & Coke Company, has moved
his office from Norfolk to New York, where he
is quartered in the general offices of the company
in the new Equitable building. No. 120 Broad¬
way. The Norfolk office is still retained to look
after shipments and bunkers at that point and at
Newport News.
The Island Creek Coal Company produced
214,110 tons last month, as compared with about
220,000 in August and 178,300 tons in July.
310
THE BLACK DIAMOND
[October 16
FUBIiISHED EVERY SATURDAY BY THE
BEACH DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price. $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, October 16, 1915.
INDEX.
Special Articles.
Page
Fort of Baltimore — The Reason Why It Grew . 301
More About What Is a Dollar’s Worth of Coal.... 304
Field of the Retail Dealer . 305
Cutting Fuel Bill and Yet Heating the" House . 306
Rate Hearing Postponed . 307
Labor Outlook in Ohio . 307
T. P. Fowler Is Dead . 307
The Mine Clearing House...
Last Change in Rates .
September Anthracite Output
News Local to Chicago .
The Switching Case .
G. H. Lill, Jr., Dies . 309
Editorial .
Facts Which Determine Our Export Prospects . 312
Mine and Service of the T. C. Kellar Coal Company 320
Market Reports.
General Review and Chicago . .
Pittsburgh, St. Louis and Duluth .
Indianapolis, Twin Cities and Birmingham...
New York .
Philadelphia .
New England, Baltimore, Buffalo and Denver
Hocking Valley .
313
314
316
317
318
319
324
Two Roads to a Goal.
The coal trade is proving again that no
cooperative movement among producers
ever was or ever will be worth anything
unless the men in it commit their convic¬
tions to it as well as their word.
The old saying is that no law was ever
framed through which an ingenious man
could not drive a coach and four if so dis¬
posed. Also it is impossible to frame a
cooperative movement in such a way to
shut both the front and the back door un¬
less the men in it want the back door shut.
By way of illustration, all coal men have
been studying carefully of late the cost of
producing coal. A majority of them today
really know what it is. As they have learned
the cost, there is a growing disposition to
consider any man an outlaw who sells for
less than that cost. No man likes to ap¬
pear in that light in the trade. So, moral
suasion is doing a lot.
Still the itch to take a fling is bothersome.
That is, the old habit is strong and coal men
will be caught with unsold coal on track
which they are tempted to move for less
than cost of production. They don’t want
to be known as that sort of a fellow and
they don’t want competitors to say the ob¬
vious thing about them. So they get the
cut price, but arrange to do it without any¬
one knowing.
What follows tells one new way. The
railways today have cars which have a car¬
rying capacity of fifty tons. The operator
is expected to load these to ten per cent
more than rated capacity. That allows them
to carry fifty-five tons. Many operators
have big customers who own scales. They
loatl these cars with all they can contain
and then bill them out at merely capacity
of fifty-five tons. As a matter of fact,
they will hold fifty-seven and one-half, fifty-
eight, and, sometimes, sixty tons. The cut
in price due to overweight amounts to
enough to control the market. The cut is
the equivalent of an offer that every fif¬
teenth car will be given away free.
And so it is that unless a coal man has
a will to get a price equal to the cost of
production for his coal, he can always find
a way to cut under that figure. Thus he
can get the edge, at least as far as tonnage
is concerned, on the man who is trying to
fix the cost of production as his minimum
price.
Just why anyone should insist upon sell¬
ing coal for less than cost and why he
will go to all the trouble to develop such
ingenious ways of doing it, is more than we
can understand.
Half-Penny Dishonesty.
We have spoken heretofore about the
newspaper practice of creating a sensation
by telling only a part of the truth. We
have shown that the only known purpose
is to sell a few papers at a net price of one-
half cent a copy to the publisher.
Recently such a conspicuous example of
the right newspaper spirit as The Chicago
Herald — edited by James Keeley — printed
an editorial on the same subject. He cited
this case : A member of the school board,
after going over his territory carefully, se¬
lected a site for a new school house. It
happened that he owned a piece of land in
that block. Rather than try to sell it to the
board, he offered to donate it. When a
sensational daily printed the story the offer
to donate was not mentioned, but instead it
was charged that the site was chosen be¬
cause this man could sell at a big price. Mr.
Keeley exposed this cheap sensationalism
and grilled it. For that act of clean jour¬
nalism will he please consider our subscrip¬
tion perpetual.
The east presents, today, many examples
of this half-penny sensationalism. The
method is the same — half the truth is made
to tell a whole lie. Philadelphia is the home
of some of them. Since the anthracite trade
is the biggest thing in their territory and
since “a shoulder strap always offers a
shining mark,” it has borne the brunt of
their attacks.
The unmoral attitude of such papers is
indicated by an article published in the
Philadelphia Public Ledger one day last
week. A short time before, we had writ¬
ten an article on the prospects. We cited
the fact that the reduction in anthracite
rates would amount on eastern business to
approximately $10,000,000 a year. We said
that ordinarily the trade would, through
competition, pass this on to the retailers,
who in turn would pass it on to the consum¬
ers. However, we said, the people bought no
anthracite this summer and hence produc¬
tion up to the first of October was short
nearly 2,750,000 tons. This would suggest,
ordinarily, premium prices through the win¬
ter. This year, we believed, the operators
would be satisfied to allow the price to re¬
main stable until the first of next April.
Thus, the ten million dollar saving in
freight rates will have to be disposed of next
spring instead of now. We suggested that
the miners will try to get it all for them¬
selves.
The Public Ledger instead of giving our
reasons for the closing statement — the
only decent thing to do — simply published
the conclusion. It made a sensation of the
“fact” that the operators were planning to
absorb for themselves the ten million dol¬
lars’ saving due to a cut in freight rates.
Modern science, with all its skill in such
matters, has no instrument minute enough
to measure the littleness of a man who will
tell that kind of a lie to get a half-penny.
Our esteemed contemporary, edited by
Mr. Saward, is sometimes guilty of the
same offense. However, he may be ex¬
cused on the score that he gets six cents a
copy instead of a half-penny. His price is
higher at least.
For example, not long ago we were argu¬
ing for a larger margin of profit and said
that if it were only ten cents a ton on coal,
the fixed charges would eat up six cents,
leaving to those who did all the work and
took all the risks only four cents. In order
to make a fifty-fifty division between bond¬
holders and stockholders, we showed that
the margin would have to be increased to
twelve cents and so on.
Rather than permitting the context to ex¬
plain the conclusion. Friend Saward re¬
sorted to the old trick of the half-penny
brigade and pounced upon the conclusion
only. Scorning this as ridiculous, he asked
if anyone had ever heard of a court divid¬
ing a bankrupt property between the bond¬
holders and the stockholders on a pro rata
basis.
But, whether the offender is a cheap
newspaper in Chicago, a warped daily in
Philadelphia, or a disappointed trade paper
in New York, the practice is the same. The
whole system is an imposition upon the
public and the whole purpose is to get a
little money together by selling misleading
information. It is the one thing that is
damning the newspaper business. Inci¬
dentally it is the principal cause of our
social unrest.
A Fleck of Inconsistency.
A business man of Chicago was riding
on a street car not long ago. A burly Irish¬
man who sat in the next seat to him started
a conversation. The big fellow was about
“three sheets in the wind” with bad whis¬
key ; was rolling heavily on the seat and
was inclined to talk about every conceivable
subject. Finally, he switched to religion
and closed that discourse with :
“There is one thing I’ve noticed. More
people today are hating each other for the
love of God than for all other reasons to¬
gether.”
That bit of inconsistency — hating each
other because of differences of religious
opinion — comes pretty near to being typical
of the mental warp of the coal trade. Coal
men actually are spending their time, their
energy, and their ingenuity in devising ways
to beat the other fellow by cutting the price
below cost of production without letting
any one else know anything about it. What
they are doing is planning secretly their own
financial ruin in order to outdo the other
fellow on the score of tonnage.
If the coal men used as much ingenuity
to dispose of their coal at a profitable price
as they do to increase the tonnage which
No. 16]
THE BLACK DIAMOND
311
is moved at a loss, the coal business would
be one of the most wonderful industries
in America.
We are going to produce pretty soon,
close to 600,000,000 tons of coal a year.
If we could get a clear profit of ten cents
a ton, it would mean $60,000,000 a year for
the coal operators. If we could get as
much as twenty-five cents a ton, it would
amount to $150,000,000 a year.
That mean, if a coal operator produces
1,000,000 tons a year, he could at twenty-
five cents a ton get $250,000 a year as a
profit. That would pay him back pretty
nearly the whole cost of his top works and
development each year.
We are measuring the possible profit
only to indicate by contrast what is the
present result of misdirected ambition or
what it means to use one’s skill to cut the
price instead of to increase the profit.
Of all the inconsistent things imaginable,
the most so is for the coal man to spend
his ingenuity on schemes by which secretly
he is going to rob himself and those friends
who have invested money behind him.
Fruit of Extortion.
The station of the Chicago & Northwest¬
ern Railway in Chicago is on one comer,
that of the Pennsylvania Railway is diagon¬
ally across the street on the other comer.
From baggage entrance to baggage en¬
trance is perhaps one hundred yards.
The Parmelee Transfer Company, which
has a monopoly of such things in Chi¬
cago, charges fifty cents for transferring a
trunk from one station to another. They
can collect it because they have a monopoly.
Also, they can explain it by making such a
specious pretext as a need to maintain uni¬
formity of price. Still, that does not con¬
ceal the fact that any such a charge for
any such service is extortion.
One of these fine days, the voice of the
people of Chicago and of the patrons of
those two railroads will be heard on this
subject. And when it is, the comment will
not be any more pleasant to hear than have
the other public utterances on rebates, stock
watering and the like. The railroads will
suffer because public opinion will condemn
them for having allowed such a thing. The
Parmelee Transfer Company will likely be
wiped out. When the time of reckoning
comes, the world will hear many loud com¬
plaints to the effect that the people are
unjust to large corporations. We are all
hearing much of that sort of thing now.
The point which the complainants will
overlook is that the people, if they are un¬
just, will be so while rebelling against the
unjust practices of the company during
years. It will be, indeed, merely the trans¬
ference of the shoe to the other foot.
Another thing which will be overlooked
by the complainant is that the Parmelee
Transfer Company is nothing more than a
glorified express wagon. There is no more
divinity in such a wagon with the Parmelee
name painted on it, than there is in an
ordinary or garden variety of such wagon
with no name on it. The ordinary express-
man would transfer that trunk for ten
cents and make money. Because it is a big¬
ger concern arid has more business to do,
the Parmelee Company ought to make still
more money than the expressman can by
doing it for ten cents. But because it has
a monopoly — gained only by the connivance
of railway officers — what is a normal charge
is multiplied by five. That is extortion.
In this, there is something more than a
matter which concerns Chicago and the rail¬
ways. Extortion is an unjust charge for
a small service. Those of us who are try¬
ing to get rich by charging too much for
little things want to remember this. If we
have an advantage and work it too hard,
the people may stand for it while they must,
but they will find another way around.
Coal Trade Goats.
The followers of an ancient religion had
a custom according to which, once a year,
they selected a goat that was without blem¬
ish. Then they tied the sins of the whole
community to its horns and turned it loose
in the wilderness. It was a convenient way
the ancients had of getting away from the
consequences of past misdeeds.
The coal trade has adopted two goats
without blemish and tries to have them
wander off into the wilderness with the sins
of the whole trade and lose them.
The first goat is the domestic sizes of
coal. The goatee, so to speak, is the Amer¬
ican householder. The common trade prac¬
tice is to sin against the mining corporation
by selling the steam coal for less than cost
of production and then to make up the
loss by selling the domestic sizes at an un¬
conscionably high price. In this way op¬
erators try to bring up the average. There
is only one drawback to that scheme and
that is the lame duck kills the live one in
the end. That is, cheap prices on steam
coal beget cheap prices on domestic and
the trade ends in poverty.
The other goat is the “country.” That
has to pay a high price that the people who
live in the larger cities may get their coal
at a low cost. Just why the country peo¬
ple should pay part of the coal bill of the
city people, we have never been able to
figure out. Still that is the practice. There
also a lame duck is killing the live one.
That is, cheap prices in the city in the end
mean also cheap prices in the country. This
happens because the jobber buys cheap coal
in the city and uses it to undersell the op¬
erator in the country. Thus a producer’s
own coal is his strongest competitor in the
country.
If we are going to make the coal trade
profitable, we must get away from the idea
of making a goat out of any class of buyers
or of any section of the country..
Loud Noises.
Some months ago, a convention of coal
men was held. When the time came to elect
the president, one man arose to deliver a
speech. It was one of the kind expected
when a prospective president of the United
States is to be named.
While the convention was in progress
and while the crowd was there to see and
to comment, this orator was one of the
busiest little bees in America. He wore
out the floor of the hotel lobby, his shoes
and his clothes while rushing from place
to place. He was a whirlwind when he
had an audience. When there was no more
opportunity to absorb the spot light he
packed his grip and went home.
Now it happens that this hustler lives in
a town where twenty other dealers are try¬
ing to sell coal. He is the only one of the
whole lot who is a member of that organ¬
ization. And, he persistently refuses to
do anything to persuade any of the other
nineteen to join. When any movement for
trade betterment is proposed, he refuses to
take any part in it if it means any additional
work for him. This man is one of the
“loud noises” of business.
We have quite a number of such men in
the coal trade, unfortunately. Indeed, if
we were familiar with other lines of busi¬
ness, we would probably find the same thing
true generally. Many men love to talk but
they do hate to work.
The favorite line of action of such men
is to sit in a convention and make speeches
in which they recommend that something
be done. They sit in their offices and write
letters telling what the other fellow ought
to do. But, when it comes to doing it they
always ask to be excused or disappear.
They are never found on the firing line
themselves.
Seeing this propensity, we are disposed
to recommend that, in future, the coal trade
refuse to allow any man to announce a pro¬
gram unless he is willing to be the first in
line to help carry it out.
Near Sighted Thinking.
Many men have analyzed the coal trade
to try to find what is the matter with it.
Many things have been found to be wrong,
but perhaps the biggest difficulty of them all
has been overlooked. That is, we have all
been guilty of near sighted thinking in re¬
spect to the coal business.
For example, when it comes to putting
money into a coal mine, nearly everyone
can become eloquent while telling why it
should go in. They know how to get it
in. They know many ways in which to
employ it when it is there. But, that is
about as far as they go. Very few people
have ever stopped to think seriously how
that money is going to be gotten out again.
That is, the coal enthusiast can see the in¬
vestment, but does not try to see the re¬
turn. They never reckon on all the cir¬
cumstances which might and indeed must
arise. As a consequence, we adopt perfect¬
ly idiotic plans and actually invest real
money behind them when even a little care¬
ful thinking would have proved that the
plan could not possibly win.
This is a time when a great many asso¬
ciations of business men are being formed.
These associations have every conceivable
purpose. The secret of them all, however,
is self-interest. That self-interest, of course,
finds its root in the primary instinct of
self-preservation. But most of us, when
talking in the abstract about self-interest
do not see the lead which makes it synony¬
mous with self-preservation. Therefore
we gloss over self-interest when talking
about our associations and go ahead spend¬
ing money on an idealistic program that is
no good unless it can carry through for
a number of years. Then comes the crucial
hour when the instinct of self-preservation
dominates some member of the association.
He doesn’t act voluntarily. Fie goes to his
goal goaded by a passion which he does
not understand any more than he under¬
stands his own life. He cannot master it
because it is grounded in everything that
lives.
No association is properly formed unless
it has thought ahead to that time and has
provided against it.
312-
THE BLACK DIAMOND
[October 16
Facts Which Determine Our Export Prospects.
The Export Situation.
The export coal trade is suffering from a lack
of vessels. While shipments so far this month
have not fallen off so very radically, it is an¬
ticipated that there will be a marked decrease
before the end of the month as compared with
former record months, due to the lack of ton¬
nage. Some of the big exporting companies say
that if vessels under charter to arrive this month
report, that their shipments will show up fairly
large. On the other hand there have been a
number of cancellations of Greek steamers and
many vessels that formerly offered for coal, have
been drawn into the grain and miscellaneous
goods trade because of the attractive rates offer¬
ing.
The record of charters for coal made during
the past week show only three fixtures. Some
charters were said to have been made privately
that do not show in the daily publication of fix¬
tures.
While vessels are offering to the west coast of
Italy at .55s and 60s, it is said that coal men will
not pay these rates at the present time, except
under most urgent call. It appears that vessel
owners are seeking around to get the most at¬
tractive charters, and some of the coal shippers
are inclined to believe that they will weaken on
their rates unless the dearth of vessels makes it
possible for them to maintain the quotations that
they put out during the past week.
Coal is in ample supply at Hampton Roads,
and $2.85 per ton is the prevailing price on New
River and Pocahontas.
Some of the gas coal shippers who ship into
export markets are said to have withdrawn quo¬
tations because of the better domestic business
that is taking their full production at the mo¬
ment.
Coal Situation in Wales.
Concerning the recent withdrawal of Greek
tramp steamers from the general trade, the Liv¬
erpool Journal of Commerce in its issue of Octo¬
ber 1 has the following Cardiff correspondence :
“Exceptional inactivity characterized the coal
trade this week, the market being completely up¬
set as a consequence of the scarcity of vessels
accentuated by the Greek government requisi¬
tioning all Greek steamers. The tonnage posi¬
tion was unsatisfactory before the Greek order
was given, and the holding up of all the Greek
vessels in the docks caused a most severe dislo¬
cation of business. With a vast amount of ton¬
nage taken off the market by the admiralty
authorities, exporters for some months past have
had to rely to a large extent upon Greek vessels.
Probably no other port in the kingdom was af¬
fected to a greater degree than Cardiff by the
order from the Greek embassy, and it came as
an unpleasant surprise to coal exporters to
realize the extent to which they were dependent
upon Greek tonnage for the carriage of coals to
the Mediterranean. The trade between the Welsh
ports and the Mediterranean has been largely in
the hands of Greek shipowners, quite 50 per cent
of the voyages to the Mediterranean being made
in Greek boats.
“The order was issued on Monday, and vessels
which were practically ready to load had orders
to immediately proceed to Piraeus. Vessels
which were partly loaded had to discharge their
cargo and proceed, whilst all charters were can¬
celled. One large exporting firm had arranged
for the loading of twenty-eight Greek steamers
during the next three weeks, and consequently
their arrangements were hopelessly disorganized.
About twenty-four vessels were affected in the
ports of Cardiff, Barry and Newport. Conse¬
quently, shippers found themselves in a most
awkward predicament, and collieries found diffi¬
culty in keeping their pits going, owing to the
pronounced scarcity of tonnage and the increas¬
ing stocks of coal. Merchants made representa¬
tions to the Greek authorities, with the result that
vessels which were already loaded were permitted
to sail, provided their destination was the
Mediterranean. This concession in no wise
alleviated the general position for a large amount
of Greek tonnage was anticipated to arrive this
week.
“The effect upon the coal market was most
pronounced. Collieries were anxiously looking
forward to increased supplies of vessels arriving
this week in order to clear their heavy standing
stocks. For since the miners’ wages agreement
has been signed, production has been made upon a
heavy scale, and with no increase in the demand
supplies of free coals accumulated. Greece had
last year 433 steamers of 892,990 gross tons, but
at the present time probably has over 940,000
gross tons of steam shipping, several second
hand boats having been bought since the war
and the period of high freight rates. Quite the
largest^ proportion of the tramp steamer class of
Greece’s mercantile marine has been trading 'be¬
tween the Welsh ports and the Mediterranean,
and the removal of this tonnage is likely to have
a considerable effect upon the Welsh coal trade.
At the present time colliery stoppages are in¬
evitable, for a vast amount of coal is now held
up in wagons — and wagons are extremely scarce.
Each day since the opening of the week, there¬
fore witnessed sharp declines in the prices of
coals. New business was practically at a stand¬
still, inquiries were few, and the outlook most
uncertain. Values were difficult, if not impossi¬
ble to range and depended wholly upon the in¬
dividual circumstances of each colliery. Sellers
had no idea as to how soon they would be in
difficulties in the endeavor to keep their collieries
going. Values were never so irregular, and buy¬
ers who were fortunate enough to be in position
to command prompt tonnage could get on at
shillings below the prices quoted this last week.
Ordinary second Admiralty coals which were
quoted at around about 22s, could be had in
place, for 20s, whilst 19s 6d was reported as paid
for a prompt lot.”
Costa Rica Coal Trade.
The American consul at Port Limon, Costa
Rica, writes The Black Diamond under date of
September 29, 1915, as follows:
“The quantity of coal used here per annum is
about 50,000 tons, that it is all imported from
Baltimore in chartered steamships by the North¬
ern Railway Company of Costa Rica.
“There have been no improvements made to
the docks and discharging equipment during the
past year and it generally takes a ship about one
week to discharge a cargo 'of 4,000 tons.
“The European war has had no effect on the
coal trade here, as it is only used for the rail¬
way shops and locomotives, and none of those
have closed, or retired from the service.”
Reading Bituminous Movement.
Shipments of bituminous coal over the Phila¬
delphia Reading Railway, for August, were
1,521,727 tons. The monthly tonnages have been
as follows :
January
February
March . .
April . . .
May ....
Tune
July ....
August
September
October .
November
December
1915.
1,295,959
1,137,989
1,405,337
1, '298,169
1,349,795
1,395,226
1,415,515
1,521.727
1914.
1,530,088
1,259,151
1,661,769
1,170,550
1,101,288
1,230,022
1,274,944
1,349,816
1,349,439
1,355,519
1,181,162
1,280,646
1913.
1,624,294
1,404,176
1,469,633
1,358,002
1,393,670
1,293,971
1,353,084
1,488,260
1,455,660
1,519,473
1,401,414
1,564,340
1912.
1,088,679
1,174,856
1,532,204
1,416,019
1,449,126
1,141,479
1,152,236
1,145,644
1,184,549
1,259,669
1,251,337
1,330,643
French Coal Output in 1914.
[Commercial Attache C. W. A. Veditz, Paris, Sept. 10.]
French coal production in 1914 amounted to
29,786,505 metric tons, compared with 40,843,618
tons in 1913. The coal output for the first half
of 1914 amounted to more than half of the total
production for the year 1913. The detailed fig¬
ures for the coal mining regions of France are
as follows for 1913 and 1914:
TONS.
Coal Basins —
Nord and Pas-de-Calais .
Loire and Haute-Loire .
Card and Herault .
Tarn and .'\veyron .
Isere .
Saone-et-I^oire .
Bouches-du-Rhone .
-All other .
Total .
1913. 1914.
27,389,307 17,800,308
3,966,618 3,487,644
2,332,091 2,045,378
1,974,804 1,810,466
362,662 317,351
2,210.091 2,048,200
694,054 619,313
1,913,991 1,657,845
40,843,618 29,786,505
In 1914 France imported from Great Britain
10,759,058 tons of coal, 18,883 tons of coke and
116,549 tons of manufactured fuel (agglomeres).
Foreign Freight Rates,
\V. W. Battie & Co.’s Produce Exchange, New
York, report as follows under date of October 11:
We chartered a large number of steamers for
export coal during the past week, but we are not
reporting any of these fixtures. The last charters
for grain to Italian ports were at 66s and ship¬
pers are endeavoring to secure concessions in
this rate, but this far without success. There
have been no charters for Italian coal since our
last report, as shippers are not inclined to meet
owners’ views. Coal rates to Brazil and to the
Plate are very firm, and it is reported that a
steamer has been chartered to load coal at Vir¬
ginia for Rio at 40s, which rather surprises us,
as we have steamers willing to accept a lower
figure. We understand that some remarkably
high rates have been paid from Cardiff to the
Plate.
West Indian freights are firm and advancing.
We would quote freight rates on coal by
steamer as follows :
West Coast of Italy . 55s to 60s
iVxsrscillcs . . . 50s to 55s
Barcelona or other good Spanish port...... 48s to 53s
(Spanish dues for account of cargo.)
Note: Charters for Italy, France and Spain read:
Lay days to commence on steamer’s arrival at or off
port of discharge Is per net register ton per day demur¬
rage.”
Montevideo . 36s to 40s
lluenos Aires or La Plata . 37s to 40s
Rosario . . 38s to 42s
Kio de Janeiro . 36s to 38s'
Santos (consignees paying docas dues) . 36s to 38s
Valparaiso or Callao, about . $7 50
Havana . 2.50@3.00
Cardenas or Sagua . 2.75 @3.25
Cienfuegos . 3.00@3.60
Port of Spain, Trinidad . 3.75@4.00
St. Lucia . 3.50@3.75
St. Thomas . 3.25@3.50
Barbados . 3.75@4.00
Kingston . 3,00@3.25
Curacao, and p. c . 3.25@3.60
Santiago . 3.25@3.50
Guantanamo . 3.25 @3.50
Demerara . 6.00 @6.60
Bermuda . 3.00@3.25
Vera Cruz, about . 5.50
Tampico, about . 6.50
Recent Coal Freight Charters.
Steamer Plymouth, a Virginia port or Baltimore to
Mediterranean, 7,000 tons coal, p. t.
Steamer Ulrik Holm (Dan.), Philadelphia to Port Bar-
rias, coal, p. t.
Steamer Brampton (Br.), Philadelphia to Italy, coal,
p. t.
Export Trade Briefs.
The Cardiff correspondent of the Liverpool
Journal of Commerce, says: “The season when
large contracts are arranged for delivery over
six, nine and twelve months ahead, has now prac¬
tically arrived. Very little business has so far
been reported and the majority of collieries were
disinclined to quote for delivery over long
periods ahead during the present uncertainty.
Further details are to hand with respect to the
Paris, Lyons & Mediterranean Railway contract
for 400,000 tons of small coals. Messrs. Pyman,
Watson, Franklin, Thomas & Co., the Federated
Coal & Shipping Company, and Tabb & Burlit-
sen, have secured 100,000 tons each at a price
which leaves fifteen shillings to eighteen shillings
for the coal. The authorities have stipulated
upon an ash percentage of nine per cent. In ad¬
dition 45,000 tons of through coals has been
placed with Messrs C. L. Clay, shipment at Port
Talbot, whilst large supplies of patent fuel have
been contracted for, particulars of which are
given below. The Paris & Orleans Railways
have |)laced orders ■ with South Wales, York¬
shire and Newcastle firms for supplies over next
year, but particulars were hard to secure. For
some time South Wales coal owners have been
endeavoring to reduce the periods of credit so
as to come into line with the practice which ob¬
tains in other districts. The subject is one which
has engaged the attention of the Cardiff Chamber
of Commerce for some time before the outbreak
of war, and opinions on the advisability, of
shortening the credit are most wide. At a meet¬
ing of colliery owners held on Wednesday it
was decided that ‘notice be given that for all
contracts and sales of coals entered into on and
after the first day of January, 1916, the terms of
payment will be net cash at fourteen days or cash
against invoice less one-quarter per cent at the
option of the seller.’ This means that buyers
have to pay cash in a fortnight instead of in a
month as at present obtains. At a discussion on
the subject by the members of the Cardiff Cham¬
ber of Commerce last month a resolution was
passed that members considered the time inop¬
portune for such a change, and asked the coal
owners to reconsider the matter. The coal own¬
ers at Wednesday’s meeting decided to adhere
to the new terms which will be put into operation
at the commencement of next year.”
The Danish navy has recently received 2,600
tons of American steam coal from the Atlantic
coast. This shipment is an experiment, and if
the coal equals the Welsh coal in its steaming
(jualities and present conditions continue in Eng¬
land more business may be expected. The coal
was laid down in Copenhagen c. i. f. at about
fifty-five shillings' ($13.38)' per ton.
No. 16]
THE BLACK DIAMOND
313
General Review.
The Trade Is Encouraged by Larger
Orders and by Better
Prices Generally.
' .A little sometliing in the tone of the market
reports for this -week indicates that the trade is
taking seriously the reports of better business
conditions. The reports reflect this improved
sentiment. Heretofore, the reports have been
hopeful enough, but they have not been quite
convincing. This week they are all quite genuine.
There has been the matter of a car shortage.
For two months the trade has been talking about
such a possibility, but no one was quite ready to
believe it possible. This week West Virginia has
known it is a reality. There was coal to move
to the east, to tidewater and to the west, but the
railroads were able to give only a fifty per cent
supply. Also, in the west, the first real sugges¬
tion of a shortage is beginning to appear.
In the matter of demand for steam coal the
situation has also been encouraging. Up to now
the steam trade has been just fairly active. The
factories which were filling orders for war muni¬
tions have been buying coal, but the general run
of businesses has not been working to normal
time. This last week one gets the impression
that business has really started up with some¬
thing like old time vigor. At least every sec¬
tion reports a good demand for the steam sizes.
Even in the west, where business has not been
very .brisk, the better demand for screenings
moved the price up about five cents a ton. This
came after a sale ranging close to 75,000 tons had
removed the free coal from the market.
An indication in the same general direction is
the present trend in the coke market. This week
the price moved up a dime easily, even in the
outlying districts. So long as the demand for
coke was mainly in the Pittsburgh district the
upturn in demand and price was of no particular
significance ; it was supposed to result directly
from the making of war material by the steel
mills. However, the price is advancing even west
of Chicago. This shows that the foundries
through that territory are using all of the coke
made at home and are buying some from the
eastern ovens.
The weather, nafurallv, has had some influence.
This has not been uniform, but pretty generally
the temperatiires have been low enough to make
a fire quite comfortable. Since the householders
were notoriously unprepared for the winter, in
the matter of fuel supply, the change in climatic
conditions brought an instant demand for coal
upon the wholesalers and producers.
The small production of anthracite up to
October 1st is assuming an alarming aspect.
Figuring for the calendar year, the production
up to that date was nearly 2,750,000 tons short of
that of last year. This means, in the main, that
the people had no coal held over from last year
and have not stocked anything like the normal
amounts for this year. The shortage in this
direction, complicated by a growing shortage of
cars, may prove serious for some of those who
have been depending upon that coal.
The one district of the country that is causing
general uneasiness in coal circles is the north¬
west. There the people have been indifferent to
their coal supply. The docks, disappointed in last
year’s business, have not followed an aggressive
campaign for this season. Also, the railroads are
just now beginning a quite belated movement of
grain to the market. Everything threatens to
combine to limit the supply of coal moving into
that territory. If the weather should continue
mild the northwest situation may be comfortable.
But no coal man is willing to vouch for the out¬
come if the winter should prove severe.
The financial situation, generally, seems to be
much improved. The banks not only have money
to lend but, what is more to the point, they are
getting the courage to lend it. This is one thing
that IS helping business generally. Another re¬
sult is that collections are easier, since business
men can pay out their money instead of being
forced to use it to do their own financing.
These things explain the concrete development
in the trade, which is that prices are stronger
and the operators have a larger volume of busi¬
ness.
Contracts for p2,500 tons of steel rails for
quic.v delivery have been let by the Raltirrrore &
Cthio Railroad to the Maryland Steel Company,
the Cambria Steel Company, the Carnegie Steel
Company and the Illinois Steel Company.
Chicago Market.
Weakness in Screenings Disappears and
the Market All Told
Is Stronger.
Office of The Bl.ack Dia.moni),
Chicago, October 14.
The biggest influence on the Chicago market
this week is the removal of any suggestion of
weakness from the fine coal market. Two
factors have been pulling in opposite direc¬
tions for the last month or so with the result
that ' prices have fluctuated rather widely and
the general disposition of the market was soft.
That is, the large buyers of screenings have, of
course, been busy trying to bear the market
and they have been aided by the number of
brokers who have sold screenings short. The
resultant situation was rather trying to the
operators who were trying to hold domestic
prices at a moderate level and still bring the
screenings prices up to a point where the mine
run price would average a profit. A very
careful survey of the situation was made this
week. Those who were long on screenings
made some big sales to others who were short
and in this way something like sixty to sev¬
enty-five thousand tons of fine coal was taken
off the market.
Anthracite coal has improved quite a good
deal in demand within the last week. Dealers
apparently are impressed by the fact that pro¬
duction up to the first of October is short
practically 3,750,000 tons. There is small hope
that this can be made up by the first of Janu¬
ary. There is a likelihood of shortage and
this is causing the retailers to supply them¬
selves while they can.
In smokeless coal the car situation is the
principal factor. Reports from 'West 'Virginia
are that the leading railroads there are able
to supply only fifty per cent of the cars de¬
manded. This is making a very definite short¬
age of coal in the east and especially in the
west. The eastern demand is arbitrary and
therefore must be supplied. The operators
have an option of selling coal in the west, but
are not selling it and .naturally the west is
experiencing the greater part of the shortage.
There is no great need for that coal just now,
but the supply is short of what the need is.
If the demand should by reason of a change
in the weather become normal for this time of
year, the coal would very quickly go to pre¬
mium prices.
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run .■ . $3.45 $1.40
Lump and egg . 4.30 2.25
The car shortage in Somerset county is not
so severe as that in West Virginia, but still
it is a factor and as a consequence, much of
the weakness in the market noted heretofore
in spots, has disappeared among the small
producers. The larger concerns are holding
firmly to circular price of mine run at $1.40
and lump and egg from $2.10 to $2.25. The
prices up to Thursday were:
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.30@3.40 $1.25@1.40
Lump and egg . 3.80@4.30 1.75@2.25
The Hocking market, after the recent lull,
has picked up again and is now almost as
strong as it was the latter part of September.
The demand is steady and in good volume,
but nothing spectacular or extraordinary.
Nearly all of the producers have abandoned
the lower price and are now holding for $1.75
at the mines. The prices up to Thursday
were:
F. O. B, F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.40 $1.75
The splint market is about as it was. The
mines have a good demand in the east and are
short of cars. Eor that reason they are hold¬
ing firm for circular price of $1.50 to $1.60.
In the west, however, the docks are not both¬
ered by a car shortage and have a great deal
of coal on hand.
F. O. B. F. O. B.
Kanav/ha — Chicago. Mines.
1^-inch lump . $3.15@3.40 $1.25@1.50
The eastern Kentucky situation is getting a
little stronger. The mines are having some
difficulty with labor which shortens the supply
a little. However, possible production is so
enormous it demands a lively market all the
time to absorb it. Even so, the bottom price
is perhaps $1.75 while some of the best known
coals are commanding $2.00 to $2.25.
F. O. B. F. O. B
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.65@4.15 $1.75@2.25
Egg . . 3.25@3.75 1.35@1.85
Eranklin county operators have been hav¬
ing a good steady demand for domestic coal
within the last week. Eor a time the latter
part of last week there was an accumulation
of unsold coal and this required some of the
mines to shut down for a day or so. By the
first part of this week, the accumulation was
cleaned up to today the mines were running
up to about seventy-five per cent of capacity.
The screenings market for a time was rather
inclined to be soft, first because it was under
great pressure by the buyers and second, be¬
cause the supply was increased due to the larger
production of lump. The market is now firm,
with prices quoted at a minimum of fifty cents
in the city and a minimum of sixty cents in the
country. Prices up to Thursday were :
F. O. B. F. O. B.
Franklin County — Chicago. Mines.
Dump . $2.80 $1.75
Egg . 2.80 1.75
No. 1 nut . 2.80 1.75
No. 2 nut . 2,45 1.40
Mine run . .• _ 2.15@2.20 1.10@1.16
2-inch screenings . 1.55@1.65 .50@ .60
'Williamson county market is not quite so
strong as it was last week. The weather has
interfered with the free movement of coal.
Even so, the larger producers are holding
firmly for $1.75 because they have enough
business on their books to keep them running
for another two weeks. Some of the smaller
producers are moving lively to make sales, but
so far have not been forced to shave the price.
Fine coal has been moving a little better. The
market up to Thursday was :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.7n
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
With the exception of a few cars now and
then from one of the producers the Saline county
operators are out of the screenings market for
sixty days. They have sold up their output
on contract. This strengthens the market up
to a minimum of sixty cents. The other steam
preparations have been practically unchanged as
to price, the demand being fair. Lump coal
has been moving in satisfactory volume. The
prices up to Thursday were:
F. O. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Mine run . 2.20 1.16
.Screenings . 1.65 .60
154-inch lump . 2.35 1.30
The market on central Illinois screenings has
been fairly firm at forty cents within the last
week with a tendency towards higher prices.
The stiffening up of the southern Illinois mar¬
ket helped the central field materially. Sanga¬
mon county domestic coal has been firm at
$1.75. Prices up to Thursday were:
F. O. B. F. O. B.
Central Illinois — Chicago. Mines.
Lump . $2.47 $1.65
Egg . 2.32@2.47 1.50@1.65
Nut . 2.47 1.65
Mine run . 1.87 1.05
Screenings . 1.22 .40
Not very many Knox county screenings
have been coming into this market, most of
them being sold on contract for much higher
prices in the home territory. Such as come in
here are commanding sixty-five to seventy
cents. Prices up to Thursday were:
F. O. B. F. O. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . 2.37 1.50
Mine run . 1.87 1.05
Screenings . 1.52 .65
The Clinton field has had a fair demand for
domestic coal at prices ranging between $1.65
and $1.75 and the market for screenings has
improved somewhat, being in the neighbor¬
hood of fifty to fifty-five cents. The prices up
to Thursday were:
F. O. B. F. O. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65<®1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.35
No. 5 and 6 mine run . 1.87 1.10
No. 5 and C screenings . 1.27@1.32 .50@ .55
The coke market has been a little stronger.
The by-product foundry advanced about ten
to fifteen cents and the domestic sizes strength¬
ened up at least ten cents a ton. Gas house is
on the average about ten cents higher than
it was. The prices up to Thursday were:
F. O. B.
Coke— Chicago.
Connellsville . $4.86@6.00
By-product, foiiudry . 5.00@5.25
By-product, egg and stove . 4.75
By-product, nut . 1-75
(!as house . 4.00@.4.10
314
THE BLACK DIAMOND
[October 16
Pittsburgh Trade.
Steam Coal Is Moving Freely on Con¬
tract and the Demand for Slack
Is Heavier.
Office of The Black Diamond,
1503 Oliver Buildin.g,
Pittsburgh, Pa., October 14.
Generally speaking, it seems entirely safe to
say that the coal and coke market has an excel¬
lent tone, and is in a far better condition than
it has experienced for months past. The week
just gone has shown a tendency toward higher
prices, and marked advances have been made in
many instances on spot sales.
Specifically, shipments on contract have largely
increased, the demand of munition-making plants
making it pretty hard for operators to keep the
pace desired. At the same time domestic demand
has been steadily broadening for industrial con¬
sumption and colder weather has added an im¬
petus to the retail business that the local trade
are very glad to see.
The cry for slack, of any or all grades is heard
far and wide — the fact that the large demand is
for mine run makes slack a scarce commodity.
New stoking methods have lar.gely increased this
demand and a number of plants, including the
Westinghouse electric interests, are making
broad inquiry for anything obtainable, gas or
steam of whatever .grade. The car question is
becoming more and more a factor, and a short¬
age of labor at many points assuming a serious
phase, and this is a hard case to diagnose, for
where a mine has its full quota today, a disin¬
clination to work is shown by many, and they
drop off here and there without warning, know¬
ing they can easily .get work again when so in¬
clined, and it is very hard for operators to con¬
trol such a situation, and with the outlook ahead
for an unprecedented demand, as domestic busi¬
ness continues to expand there is a situation de¬
veloping that will call for wise manipulation.
The lake trade continues to be a disappoint¬
ment so far as new business is concerned, but
shinping orders on contract are increasing mate¬
rially as time becomes more limited. As to quo¬
tations, today’s figures might be quoted as fol¬
lows, f. o. b. mines ;
.Slack — when it can be had . $0.80@1.00
Mine run of various grades . 1.20@1.40
Three-quarter, screened . 1.30@1.50
Five-quarter, screened . 1.40@1.60
For early 1916 shipment quotations are not
very clearly established, but some hi.gher marks
than here stated have been made, although no
extended deliveries have been booked — most of
the larger concerns being covered up to April 1st.
The Crucible Steel Company closed with the
Keystone Coal & Coke Company, the present
week for one year supply of Mine Run for one
of their eastern plants, amounting to about 40,-
000 tons Westmoreland gas coal at an advance
over present fi.gures, and the general report is
that stiffening prices are being obtained on all
grades of coal.
Coke holds its own, though furnaces do not
seem to be jumpin.g over themselves to place or¬
ders for future supply. One good contract closed
the past week by the Consolidated Coke Com¬
pany, Pittsburgh, for the first half of 1916,
brought $3.35. Spot furnace can be had for al¬
most anywhere from $1.75 to $3.00, price bein.g
largely governed by necessity on either side. No¬
vember and December delivery would possibly
hold to $3.00 to $2.35 subject to the same condi¬
tions. Announcement was made Monday by the
H. C. Frick Coke Company that five hundred ad¬
ditional coke ovens were fired last week. At Bit-
ner, where the plant has been idle for more than
a year, two hundred or three hundred ovens have
been blown in. It was stated that the FI. C. Frick
Company is running eighty-five per cent capacity,
working full time, six days a week. This week
seven hundred and fifty additional coke ovens
will be fired in eighteen plants and the company
will run ninety per cent of capacity.
The demand for foundry coke is not so pro¬
nounced. The activities of the foundry trade
have not increased as has that of the steel mills.
While in some branches of the trade, and in
some districts, foundries are running full capac¬
ity, largely on special work, others are not so
fortunate and the avera.ge, it is said, is not over
sixty-five per cent of capacity basis.
The pig iron market has been generally quiet.
Most sellers are pretty well covered for their
capacities over the remainder of the year and are
not disposed to sell very heavily for extended
delivery. In the majority of grades prices have
been stationary, but show a marked firmness, and
coke is in many instances being sold on the slid¬
ing scale basis, regulated by the price of pig iron,
and little disposition being shown to sell far into
1916.
Pittsburgh News Items.
A charter has been granted the Pittsburgh Coal
Land Company. Capital, $200,000. Treasurer,
William Miller, 7225 Meade street, Pittsburgh,
Pa. Incorporators; M. H. Taylor, Erie, Pa.;
W. K. Field, Columbus, Ohio; F. M. Wallace,
Erie, Pa. ; J. A. Donaldson, Emsworth, Pa., and
J. B. L. Hornber,ger, Pittsburgh, Pa.
In the Pittsburgh district more than nine hun¬
dred by-product ovens have been completed re¬
cently or are in course of construction, at an
a,ggregate cost of $15,720,000. It was stated yes¬
terday that the by-product ovens specified will,
when all are completed, consume about 13,000
tons of coal daily.
The Frick Coke Company will fire 780 addi¬
tional coke ovens this week. The plants to be
put in action include the Adelaide, Brinkerton,
Buffington, Calumet, Continental, Continental No.
2, Continental No. 3, Dorothy, Hecla, Kyle, Mar¬
guerite, Standard, United, York Run, Hostetter,
Whitney, Leisenring No. 2, Lemont and Bitner.
Charles L. Doyle, 2126 Oliver building, Pitts¬
burgh, has been made salesmanager for the Con¬
solidated Coke Company, the product of which
was formerly sold by the Pickands-Magee Com¬
pany, with which he was identified, the Pickands-
Magee Company practically retiring from the
field.
Work has been started at the LaBelle Mine
No . 4, of the West Virginia-Pittsburgh Coal
Company, near Wellsburg, W. Va., on a steel
tipple which is being erected to take the place
of the wooden structure now in use. The work
at the present time is being done at the part of
the tipple that crosses the tracks of the Pan-
Handle traction lines. It will be joined to some
steel structural work that was done at the tipple
some time ago. The tipple at the Gilchrist Mines
No. 3 and the Locust Grove Mines of the same
company have been improved in the same way.
St. Louis Trade.
St. Louis, Mo., October 13. — {Special Corre¬
spondence.) — Buying on domestic coal has been
very heavy in spite of the fact that the weather
has been unusually warm for this season of the
year. This indicates that our prediction made
during the summer months that consumers were
not buyin.g coal and would therefore buy with a
rush later on is coming true.
The coal yards claim that their business has
been so heavy that they have had great difficulty
in making deliveries. In fact it is a Godsend
that the weather has been very mild, because had
it been cold the coal yards would have been ab¬
solutely swamped and unable to cope with the
situation.
The demand for car load coal has been very
pleasing and very steady on all domestic sizes.
A slight car shorta.ge has developed on several
railroads, though nothing serious. In view of
the tremendous movement of domestic coal,
screenings and steam sizes have held up very
well. A slight drop of five cents a ton has been
noticed this last week on screenings and nut.
Standard coal is moving well. Price on lump
has come up a little bit and the month gives
promise of growing better as it gets older.
The current prices are as follows :
Standard Coal
6-inch lump. . . .
6x3-inch egg. . .
2-inch lump. . . .
Steam egg . . . .
No. 1 nut .
No. 2 nut .
Mine run .
Screenings . . . .
F. 0. B.
F. 0. B.
Mine.
St. Louis.
$1.6754
1.8254
.. 1.05
1.6254
1.4754
1.72 54
.. .80
1.3754
1.4254
.9754
Stanton and Mt. Olive coals are all moving
well. Dealers have all they can do locally and
quite a tonna.ge is going north.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.50 $2.07^
2-inch lump . 1.25 1.82^
Screenings . 40 .9754
Williamson county coals are stiffening up in
price. Egg, which was draggin.g considerably
last month, is now moving much better. Prices
on the higher .grades of coal remain about the
same. The mines, which were making liberal
concessions ten days ago, are now holding very
close to the circular.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . 1.60@1.76 2.22 @2.47}4
Sx2-inch nut . 1.60@1.75 2.32}^ @2.4754
Screenings . .60 1.2254
Franklin county coals are moving very well.
All sizes are now movin.g freely. Egg is in good
demand and also No. 1 nut.
6-inch lump, egg or nut
No. 2 stove .
Screenings .
F. O. B. F. O. B.
Mine St. Louis.
..$1.75 $2.4754
. . 1.40 2.1254
. . .60 1.3254
The demand on anthracite is very good. Chest¬
nut is now getting quite short.
Anthracite — F. O. B. St. Louis.
Chestnut . $7.55
Stove or egg . 7.30
Grate . 7,05
Smokeless — F. O. B. F. O. B.
Mine St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.26
By-product coke (all sizes) . 4.50
The prices on Illinois soft coal, f. 0. b. East St. Louis,
Madison, Venice or Granite City, Ill., are 20 cents lower
than the above quoted St. Louis prices.
Duluth Trade.
Duluth, Minn., October 14. — {Special Corre¬
spondence.) — The only coal company having gen¬
eral headquarters at the Head of the Lakes is
not a price-cutter, according to the officials. This
statement was made in reply to an article in The
Black Diamond, issue before last. The company
does not want its name mentioned, but in view
of the fact that it is the only coal company with
headquarters here it might as well be. However,
its officials declare that it does not cut prices, and
where it cannot get business without that ex¬
pedient it passes up the business — in every in¬
stance, is the declaration.
The Lehigh Valley Coal Company, chief deal¬
ers in anthracite coal at the Head of the Lakes,
has leased the property and equipment of the
Sunday Creek Coal Company on the Superior
side of the bay, and is using the docks of the
latter company for storing hard coal. The Sun¬
day Creek Company, an Ohio concern, suspended
business here because of the rate trouble in which
it is involved in Ohio, and has been reducing its
stocks all summer. The stocks were virtually
cleaned up when the lease to the Lehigh Valley
was made. Just how long the lease extends
neither Supt. Emmert of the Lehigh Valley or
Supt. O’Neill of the Sunday Creek will say; but
a good deal of hard coal is being piled up on
the docks. These docks formerly belonged to the
old St. Paul & Western Coal Company.
Business in hard coal has hardly started yet,
although many more orders have been received
to date than at the same time last year. Inquiry
is liberal, however, and it is generally expected
that by the end of this month shipments will be¬
come heavier and will increase from then on.
The docks on both sides of the bay are pretty
well filled up with soft coal now, despite the fact
that receipts have fallen off of late, and coal
dock superintendents declare that they are in ex¬
cellent position for a heavy winter of shipment.
Shipments have grown immensely during the last
month is the general statement. Figures showing
the actual shipments during September will not
be available before next week, but it is expected
that they will show a generous increase over the
month last year.
The steamer J. J. McWilliams came to this
port yesterday with a cargo of coal, but was im¬
mediately ordered to take the cargo to Fort
William. Whether the McWilliams came here
because of a mistake in orders received at the
Sault or was diverted to fill a need at the
Canadian port could not be learned.
The steamer James B. Neilson, upbound with
coal for the Duluth, Missabe & Northern Rail¬
road Company’s dock, ran on the rocks at Point
Isabel, Lake Superior, last Friday night in a
heavy snowstorm. Tuesday her hold filled and
her stern sank in eighteen feet of water. The
wrecker. Favorite, is at work on her and expects
to bring the steamer into port in a few days.
Probabilities of many more cargoes of coal
coming up this season are even more remote than
a short time ago, for the reason that rates on
ore and coal have climbed to a point where they
are prohibitive of coal carrying. Only contract
cargoes will come, for with the grain rate at five
and five and one-half cents, and ore shippers bid¬
ding as high as $1.30 for wild boats, coal stands
very little chance, and the dealers are indifferent
anyway.
No. 16]
THE BLACK DIAMOND
315
Cincinnati Trade.
A Change of Climatic Conditions Has
Given Added Vim to the Do¬
mestic Market.
CiNCiNN.\Ti, Ohio, October 14. — (Special Cor¬
respondence.) — With a little more frost in the
atmosphere and indications of a somewhat early
winter season, punch and vim have been ejected
into the coal situation in this district and coal
operators and dealers are a little more cheerful.
Scarcity of labor, which is becoming more and
more apparent, together with a most stringent
condition of car service, have combined, exactly
as has been prophesied, to alarm the laggard
dealers and to cause a rush of orders which can¬
not possibly be filled. Every mail is filled with
orders for coal of all grades and kinds, from one
car to fifty cars, accompanied by an insistent note
that the party giving the order desires prompt
delivery and no questions asked as to price, in
reason. Some of the companies, notably the
Chesapeake & Ohio Coal & Coke Company, have
had printed a form letter calling attention to the
predictions of the firm, some time ago, that the
situation now here was on the road, and an¬
nouncing that it would be impossible to fill orders
under from ten days to four weeks. This situ¬
ation, which is repeated with more or less aggra¬
vating features by almost every finn in this ter¬
ritory, has caused quite a commotion among un¬
protected retail dealers.
On the other hand those who have contracts
are sitting easy while the operators are sweating
and toiling to get, at least reasonable, delivery,
but the great majority of operations are behind
on delivery from five to fifteen days. Most of
the operations are running in periods of half a
day, perhaps, a full day once in a while and to a
total of from two to four days per week, with
even that situation embarrassed by a scarcity of
labor. One operation has engaged a number of
negro laborers who are trying to learn the busi¬
ness of mining and delivering coal. It is reported
as not being popular with many of them, but they
are doing fairly well. Most of the skilled
mechanics in the outside forces have gone to
cities where opportunities exist to engage in
manufacture of war munitions at much better
wages and where they can enjoy the privileges
of amusement in the cities. This cuts much
more of a figure than at first would seem possi¬
ble, people generally being of the opinion that
the draft of men from the mines for service in
the parent country at war, accounts for the heavy
depletion of mining forces.
While the above statement of facts is true of
West Virginia, it is also true of Kentucky, but
to a somewhat lesser extent. In that field there
has been a better situation for some time as to
demand for product. Along the Louisville &
Nashville Railway the mines are in good shape
generally. All high grade coals are bringing for
October delivery, $2, with the possible production
sold up for two months, or about December 10.
Washed egg is going as fast as manufactured at
$1.7.5, and washed nut at $1.60. Spot nut and
slack goes at better than eighty cents and con¬
tract has risen to eighty-five and ninety cents.
Very little cheap coal is in the market of either
the West Virginia or the Kentucky product, job¬
bers gradually retiring from the handling of in¬
ferior products and being unable to get their re¬
quirements of the superior grades. Tracks are
pretty well cleared up, especially on nut and slack
which have grown somewhat under demand and
which, two months ago, could have been bought
in almost any bulk at forty and fifty cents and
perhaps lower. Now nut and slack are firm at
sixty-five and seventy-five cents, and must be
brought from the mines at that.
Monday morning the Wyatt Coal Company
added ten cents to the prices of their products,
quoting Main Island block of the West Virginia
fields at $1.85 ; egg for domestic use, $1.25, for
-Steam purposes $1.20 ; nut and slack, seventy-
five cents and mine run firm at $1. In other
average grades and fields four-inch block is
quoted at $1.60; two-inch, $1.35 and $1.40; mine
run, $1 ; gas. eighty-five cents ; average nut and
slack, sixty-five cents, with all steam products
becoming firmer because of increasing demand
for contract delivery.
Smokeless products are moving along smoothly
with very little solicitation now for placing of
spot coal. The schedule is maintained with less
difficulty, and the main thought of operations
now is to make sure of contract delivery which
has fallen behind because of suspensions some¬
where along the line. Difficulties with the car
service are now the rule and operators see con¬
tinuous and gradually increasing struggles to
maintain their deliveries. They are not worry¬
ing much over it, having for six weeks called the
attention of dilatory Stockers to the approaching
situation. They are now “letting the other fel¬
low walk the floor.”
O. W. Gardner, general manager of the Chesa¬
peake & Ohio Coal & Coke Company, was in the
city the past week on his way to Gallipolis for
the sad purpose of attending the funeral of his
father, S. J. Gardner, a well known citizen of
that city.
Detroit Trade.
Detroit, Mich., October 14. — (Special Corre¬
spondence.) — With a more active inquiry seem-
in.gly developing in the steam coal trade, the situ¬
ation in the Detroit market is described as tak¬
ing a very encouraging trend. While consumers
do not seem to be buying in large quantities, the
small orders are being booked re.gularly and in
such numbers as to indicate that the attitude of
consumers is generally favorable. Shippers say
the outlook is very encouraging and some ex¬
press the belief that a good market is likely to
continue all through the winter.
Part of the improvement is credited to the
better condition of .general business and the
larger activity in many manufacturing lines, fol¬
lowing a more liberal demand for products of
the factories.
Fine coal is in especially active demand and
some of the shippers say they are experiencing
some difficulty in supplying a sufficient quanity to
meet requirements of customers. In this connec¬
tion complaint is also beginning to be heard over
delays in receipt of shipments, this difficulty be¬
ing charged to shortage of cars in West Vir¬
ginia mining districts.
After developing considerable activity, the do¬
mestic coal trade has taken an easier turn, re¬
flecting the return of higher temperature than
prevailed throughout last week. Orders have
diminished, but shippers are looking forward to
certain improvement in that branch of the busi¬
ness as soon as the frost again takes a stronger
hand in weather conditions.
Such consignment coal is still being shipped
into Detroit, but with the better situation here,
this stock is giving little trouble and not very
much of it seems to be put on the market at
prices materially below those prevailing on mine
shipment orders. Lump and egg are the most
plentiful, but even these sizes are not burden¬
some.
In the anthracite trade, the bulk of the busi¬
ness is still being transacted by the retail yards,
while shippers are receivin.g only a few orders.
This circumstance is, in a way favorable for local
consumers, as much difficulty is reported in ob¬
taining cars for delivery of shipments from the
anthracite region.
Shipment of coal over the lake route continues
in volume considerably below that usual at this
season. Most of the stock is being carried on
the upbound trips of freighters employed in the
iron ore trade. Nearly all independent carriers
are now handling grain and accelerating dis-
patch by avoiding coal
cargoes.
shipment
Prices in the local
market on mine
orders are as follows :
F. 0. B.
F. 0. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
. $1.00
$2.40
Mine run .
. .90
2.30
Slack .
. 60® .75
3.00@2.15
West Virginia Splint — •
Four-inch lump .
. 1.50@1.75
1.90@2.15
Two-inch lump .
. 1.25@1.40
2.15@2.30
Three-quarter .
. 1.10
2.50
Mine run .
. .90
2.30
Nut, pea and slack .
1.95@3.05
Smokeless —
Lump and egg .
. 2.25
3.85
Nut .
. 1.75
3.35
Slack . .
Open
Mine run .
. i.40
3.00
Kentucky Splint —
Lump .
. 1.60@1.75
3.00@3.15
Egg .
. 1.25@1.40
2.65@2.80
Nut, pea and slack .
. .65
2.05
Fairmount —
Three-quarter steam lump.
. 85@ .95
2.25@2.36
Mine run .
. 70@ .80
2.10@2.20
Slack .
Open
Hocking Valley — -
Shaker three-inch lump .
. 1.60
2.75
Shaker egg and nut .
. 1.15
2.30
Domestic lump .
. 1.50
2.66
Three-quarter lump .
. 1.35
2.50
Mine run .
. 1.00@1.10
2.15@3.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
. 1.05
2.20
Mine run .
. .95
2.10
Slack .
Open
Jackson Hill —
Domestic lump .
8.65
Cambridge —
Three-quarter lump .
Mine run .
Pomeroy —
Two and three-inch lump
Egg .
Slack
1.20
1.10
1.60
1.35
Open
2.35
2.25
2.76
2.60
Open
Cleveland Trade.
ChEVEL.'tND, Ohio, October 14. — (Special Cor¬
respondence.) — Lake coal has been coming for¬
ward rather slowly the past week, owing to the
shorta.ge of cars that has developed on most of
the roads, and there is little prospect of im¬
provement for some time to come. Then there
seems to be a lack of vessel tonnage as well.
Boats will not wait to load coal while grain car¬
goes are awaiting them at attractive rates. It is
said that shippers paid fifty cents a ton, an ad¬
vance of twenty cents, for a small vessel to load
for Little Currant this week. This was an ex¬
ceptional case, however, and the temptation is
not sufficient to warrant this figure on large car-
.goes to other points. Small vessels are scarce
and occasionally command a premium, especially
where their destination is a point difficult to
reach or where trouble is encountered in dis¬
charging cargoes.
There has been no advance in the price of coal
for lake shipment. It is said that plenty of No. 8
coal can be purchased at any time for $1 per ton,
and some have sold for even less in order to
keep their mines in operation. The mines, in
many instances, have been running rather spas¬
modically the past week, both because they could
not secure a sufficient number of cars and from
the fact that the demand for lake coal has not
lieen strong.
A number of jobbers have been compelled the
past week to order slack shipped in box cars to
fill their orders, as other cars could not be se¬
cured. The Pennsylvania Lines, it is said, have
taken most of the steel gondolas for the iron
trade and the domestic trade has been compelled
to accept their coal in hoppers. This causes a
hardship in unloadin.g, but under the circum¬
stances it can not be averted.
There has been a little better demand for the
larger sizes from the No. 8 district the past
week, and slack has shown increased strength.
I'his, together with the tendency on the part of
the jobbers to hold what they have, pushed the
price up at least five cents a ton. Orders are
being filled first and spot sales made afterward.
Quotations are as follows :
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.05@1.10 $1.95@2.00
Run of mine . .95 1.85
Slack . 4 . .85 1.75
While there has been some demand for Pitts¬
burgh slack, the orders are somewhat slow in
delivery. Other sizes have not been active in
the market.
F. O. B. F. O. B.
Pittsburgh District — Mines. Cleveland.
Slack . $0.70@0.80 $1.70@1.80
Youghio.gheny slack has shown quite a little
strength and is quoted at ninety cents, an ad¬
vance of ten cents over a week back. It is firm
at that price, with indications of going higher.
Orders for Pocahontas coal are coming in
.greater number and usually they are much larger
than for some time back. With the exception of
slack, however, the quotations are about the same
as they have been for several weeks. Slack is
selling five cents per ton higher.
Smokeless — •
Lump .
Egg .
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$2.25 $3.70
2.25 3.70
1.45 2.90
The demand for Massillon coal has been well
maintained and, if anything, is stronger than at
any previous time this season.
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 3.50 3.20
Run of mine . .90 1.60
Goshen slack has shown more strength than
for some time and was quoted last week at from
ninety to ninety-five cents at the mines or $1.60
to $1.65 on track here.
Cambridge coal showed an increase on slack
onlv durin.g the past week.
F. O. B. F. O. B.
Cambridge— Mines. Cleveland.
Three-quarters . $1.05 $1.95
Run of mine . *05 1.85
Slack . -85 1.75
Fairmont slack was stronger and showed an
increase in the quotations of at least five cents a
ton, making it from $1.75 to $1.80 on track in
this market.
Kentucky 4-inch block sold in this market from
$1.90 to $2, the freight rate being $1.25.
316
THE BLACK DIAMOND
[October 16
Indianapolis Trade.
Indianapolis, Ind., October \-l.-~(Sf’ccial Cor¬
respondence.) — The coal trade in Indiana is
steady if not quite as satisfactory as usual for
October. The demand for domestic grade is
very good. Most of the mines are bein,g op¬
erated. 'I'he output of domestic is larger than it
was at this time a year ago. Few retailers had
stocks on hand and the result is that they arc
sending in rush orders to the operators. Domes¬
tic coal is steady to strong and bids fair to go
lii.gher the first real, old-fashioned cold snap that
comes along. There is not enough domestic coal
in the bins of the retail yards to last long. Re¬
tailers are finding it difficult to get their orders
filled by the Eastern coal companies which helped
out with the Indiana grades. The demand for
steam coal is stron.g enough, but the funny thing
about the market is that the prices are low.
Summer prices prevail for steam coal. Operators
and dealers say that the demand for steam coal
is improving right along, but that the prices are
not going Up. However, the situation is much
better than it has been for several months. The
head of one of the largest banks at Anderson,
a manufacturiag center, stated here this week
that the factories are increasing their weekly
l)ayrolls and the business conditions in his city
are improving. They are better, he said, than
they have been in a long time. The Indiana
Bankers’ Association held its state convention
here this week and it was significant that the
average banker was in a more clieerful frame
of mind about conditions in Indiana. In fact the
outlook is better than it was at this time a year
ago, and it is re.garded as likely that there will be
an improvement in the demand and prices soon
for steam grades. However, it should be stated
that the situation is not so bad right now.
The following prices are being quoted by the
wholesalers :
Indiana —
Mine run. No. 4 .
Mine run Nos. 5 and 6
Nut .
l‘/^*inch steam lump .
No. 4 screenings. ^ .
Nos. 5 and 6 screenings. . .
2 -inch domestic No. 4...
No. 4 domestic . . .
Nos. 5 and 6 domestic....
Brazil block domestic .
No. 1 washed coal .
No. 2 washed coal .
Southern Indiana Field —
No. 5 mine run .
Domestic lump .
F. 0. B.
F. O. B.
Mines.
Indianapolis.
_ $1.10(31.20
$1.60@1.60
1.55@1.65
_ 1.20@1.30
1.70@1.80
1.80@1.90
_ 1.25(31.35
1.75(31.85
. 70@ .75
1.20(31.25
. 55(® .65
1.05@1.15
_ 1.50@1.55
2.00@2.05
2.10(32.15
- 1.40@1.60
1.90(32,10
_ 2.25(32.50
2.75(32.50
_ 1.75
2.25
_ 1.65
2.15
. . 1 in
_ 1.40(31.50 .
One of the most daring holdups in Indiana
in recent years was perpetrated last Saturday at
the Lattas Creek Coal Company mine in Greene
county. Two bandits held up Earl Smith, pay¬
master of the company, and took away $8,300.
Smith was held up at the point of a .gun. The
robbers made their escape on a motorcycle. The
mine is a subsidiary of the Vandalia Coal Com¬
pany which offered a reward of $500 for the
capture of the bandits. One man believed to
have been involved has been arrested at Terre
Haute.
Twin Cities Trade.
Minneapolis and St. Paul, October 14. —
(Special Correspondence.) — Everybody in every
branch of the fuel business is busy, and the vol¬
ume of deliveries to consumers during the past
week has been very heavy. The first cold weather
of the month found dealers poorly stocked to
meet the situation. On top of this, consumers
had not ordered much coal in anticipation of
their requirements, the result being that there
was a rush of orders, such as has not been ex¬
perienced during the past two years. Some deal¬
ers sold out their entire stock of coal within a
))criod of three or four days, and the wholesale
interests have been rushed with orders by tele¬
phone and telegram; Dealers who handle Illi¬
nois and Indiana coal, however, are the worst
sufferers. Unless there is the regulation Indian
summer, or the dealer had one or more cars in
transit, when his stock was depleted, it means he
is to be out of coal for ten days or two weeks
until new shipments arrive.
This return of prosperity in the coal business
has been very welcome. Last winter and fall
there was no such spurt of orders, and the pres¬
sure all came from the man who had coal to sell.
I'or a brief interval, at least, the tendency has
been the other way. Some dealers were so over¬
loaded with orders they could not secure suffi¬
cient men and teams to take care of them.
This activity has not influenced the railroad
carriers. Movement of coal has slowed, up a
trifle and some of the southern Illinois mines ex¬
perienced a shortage of cars for several days,
but the situation has not been anywhere near as
acute as that experienced four and five years ago
at this season of the year.
Dock prices on soft coal continue to be steady,
and bargains are not as easily obtainable as they
were a few weeks ago. The Black Diamond last
week called attention to a situation which is
proving a source of considerable worry to dock
managers, namely the shortage of vessels on the
great lakes for coal loading. This situation has
grown a trifle worse, and the fear that it will
be a factor of considerable importance, if the
winter is abnormally cold, is more general than
it was a week ago.
Current prices on coal sold in this market are
as follows :
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.86 8.06
Stove . 6.85 8.06
Nut . 7.10 8.30
Pea . 6.60 6.70
Buckwheat . 4.00 6.20
BITUMINOUS.
Splint, screened lump and stove. $3.30@3.40
Splint, dock run . 3.10
Hocking, screened lump and stove 3.30@3.40
Hocking, dock run . 3.00
Youghiogheny, gas, lump and stove 3.30@3.40
Youghiogheny, gas, dock run . 3.10
Pittsburgh vein, lump . 3.30@3.40
Pittsburgh vein, dock run . 3.00
Pocahontis, screened lump or egg 4.75
Pocahontas, screened lump and
egg mixed . 4.60
Pocahontas, mine run . 3.25
Cannel, lump . 5.25
Smithing, bulk . 4.25
Smithing, in 100-lb. saeks . 6.00
Briquets, anthracite . 5.00
Briquets, smokeless . 5.00
$4.26@4.36
4.06
4.26@4.36
3.96
4.26@4.36
4.06
4.26@4.36
3.96
5.71
5.46
4.21
6.21
5.21
6.96
5.96
6.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows:
Southern Illinois chunks . $1.65@1.75 $3.95@4.05
Southern Illinois egg . 1.65@1.75 3.95@4.05
Southern Illinois No. 1 nut . 1.65@1.75 3.95@4,05
Southern Illinois No. 2 nut . 1.40@1.50 3.70@3.80
Southern Illinois No. 3 nut . 1.10@1.25 3.40@3.55
Southern Illinois run of mine... 1.15@1.25 3,45@3.55
Southern Illinois 2-in. screenings .60@ .70 3.90@4.00
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
Interests very closely identified with the by¬
product coke company of Milwaukee are seeking
a site in St. Paul for the location of a by-product
coking plant. Several locations have been con¬
sidered, but none is considered entirely satisfac¬
tory. The new company wants to purchase about
fifty acres with trackage and running water. If
the plans in hand are realized, the ultimate in¬
vestment will be about two million dollars. The
gas output, it is claimed, will be sold to the St.
Paul Gas Light Company. M. E. Schlesinger of
Milwaukee is at the head of the new enterprise.
It is expected if the new coking plant is erected
it will require at least two years before the pro¬
duction reaches capacity.
Fenwick C. Atwill of the Atwill-Makemson
Company, Chicago, has been in Minneapolis and
St. Paul several days on a business trip.
Birmingham Trade.
Birmingham, Ala., October 14. — (Special Cor¬
respondence.) — Domestic coal is still doing good
business and demand good with both the opera¬
tor and yard men. The consumer is putting in
the winter’s supply in fairly good sized lots.
Steam coal is only fair and the demand is not
as large as has been anticipated. Many users of
steam coal have put in coal saving devices. This
is especially true in regard to the railroads, which
have put on large engines of which one does the
work which formerly required two, thus reduc¬
ing a saving in steam coal.
Blacksmith coal is holdin.g to a fairly good
trade. Coking coal is having a remarkable show¬
ing with the number of furnaces now in blast.
It is estimated that the number of tons used per
day is very nearly twelve hundred.
Coal mining in Alabama is gradually increas¬
ing, and more men are now bein,g given employ¬
ment at and around the mines in this state than
for two years. Announcement that the No. 6
mines of the Tennessee Coal, Iron and Railroad
Company at Adger, in the Blue Creek regions,
in the lower part of the county, will resume
operations at soon as they can lie gotten ready,
it is given out that the beehive coke ovens be¬
tween Adger and Johns will be started up, and
also that the bi.g coal washer, one of the largest
in the stat?,- at Pratt City, will be placed in op¬
eration also. The washer has been idle for two
years. The bins at this washer have a capacity
of 50,000 tons of coal, and it is understood that
these bins will be kept filled all the time and the
washing kept up steadily. The Tennessee Coal,
Iron and Railroad Company is out of the market
so far as coal and coke are concerned for deliv¬
ery this year, but the increase in the production
of the raw material is necessary in the face of
the increased make in iron and other products
and the prospects of continued development.
Prices for October and the balance of the year :
Bibb County Domestic Coal —
Red ash Cahaba lump .
Red ash Cahaba lump .
Red Ash steam size .
Jefferson County —
Fancy steam Pratt .
Run of mine Pratt .
Mary Lee lump .
Black Creek —
Fancy steam lump .
Washed nut .
Washed steam .
Mine run .
Jefferson Steam Coal —
Mine run .
Walker County Domestic —
Carbon Hill lump .
Carbon Hill egg .
Horse Creek mine run .
Genuine Corona —
Lump .
Egg • • ; .
Steam sizes .
Shelby County Domestic Coal — •
Cahaba fancy lump .
Cahaba No. 2 lump .
F. O. B.
F. O. B.
Mines.
Birmingham.
$3.00
$3.30
2.75
3.10
1.20@1.35
Frt. rate 30c
1.75
2.00
1.20@1.25
1.45@1.60
1.40@1.50
1.80@1.90
1.76
2.05
1.75
2.05
1.35@1.60
Frt. rate 30c
1.35(31.40
Frt. rate 30c
1.15(31.25
Frt. rate 30c
1.75
2,15
1.65
2.05
1.00@1.20
Frt. rate 40c
2.00
2.40
1,90
2.35
1.25@1.35
Frt. rate 40c
3.00
3.30
2.75
3.05
Montevallo domestic prices ranging from $3.00
to $3.25 blacksmith coal, washed and screened,
per ton $2.00 to $2.25 at mines with different
rates to various points.
A reduction of only six cents per ton is al¬
lowed by the Interstate Commerce Commission
on coal from the Birmingham district to New
Orleans where the coal is for bunker purposes.
Following the grantin.g of the increase of fif¬
teen cents per ton on coal from the Birmingham
district to New Orleans, making the rate $1.40
per ton, a loud complaint was raised by the Ala-
Iiama coal operators and it was shown that the
Pennsylvania operators who move their coal to
New Orleans by water would have all the ad¬
vantage. Then the railroads attempted to ab¬
sorb the fifteen cent increase in the switching
and tippling charges in New Orleans on bunker
coal, but the Interstate Commerce Commission
disallowed this and fixed a rebate of six cents,
the amount that is charged for tipple handling of
coal to barges at the water front.
Alabama coal operators are somewhat dis¬
tressed at the new tariffs just out, which allow
only a six cent difference in the bunker coal to
New Orleans, and stron.ger attention is being
placed in the Warrior River transportation facili¬
ties. It is not improbable that effort will be
made to handle as many thousand tons of coal
down the Warrior River as possible.
Want Rates Changed.
Denver, October 14. — (Special Correspond¬
ence.) — Suit has been filed with the state public
utilities commission by the Grand Junction Min¬
ing and Fuel Company and by the Palisade Coal
& Supply Company to compel the Denver & Rio
Grande Railroad to establish more equitable rates
for hauling coal from the Cameo mines in Mesa
county, operated by these companies, and to com¬
pel the railroad to publish coal tariffs from Den¬
ver to Salida.
The petitioners allege that the rates which they
are compelled to pay are unjust, and also that the
railroad gives such rates to operators at Bowie,
Somerset and Crested Butte, in this state, and at
Thompson, Utah, that they are unable to compete
for Denver business. No date has yet been set
for the hearing.
Default having been made in the payment of
bonds of the Branchland Coal Company, Fay¬
etteville, W. Va., issued in 1907, and secured
by a deed of trust on the company’s real
estate, the Equitable Trust Company of New
York has advertised the property which is
situated in Lincoln county for sale on Wednes¬
day, October 20. The bonds are for $150,000,
being 150 six per cent twenty years, first
mortgage gold bonds of the denomination of
$1,000 each, while the estimated value of the
property is between $250,000 and $300,000.
B. F. Mills, Cleveland sales a.gent of the Pitts-
burgh-Westmoreland Coal Company, is a can¬
didate for the office of mayor of Lakewood, one
of Cleveland’s big suburban towns. Mr. Mills
is making an active campaign and during the
past week has delivered addresses in different
parts of the town.
N'o. 16]
THE BLACK DIAMOND
317
New York Trade.
Anthracite Trade Showing More Snap —
Bituminous Boom
Predicted.
Office of The Black Diamond,
New Yokk, October 14.
Throughout the east the anthracite trade is
very active, and advices from the west show
that a great deal more anthracite will be re¬
quired before the lake navigation season closes.
In fact, there is a heavy demand for anthracite
from all sections, and as the result operations
are now being worked on practically full time.
Box cars for western all-rail shipment are very
scarce.
As the demand increases, it is found that the
producers are not going to be able to increase
production materially. In fact, it is very evi¬
dent that they are not going to be able to
produce coal as freely as they were doing dur¬
ing the last months of last year, unless there
is considerable change in the labor situation.
War has brought about a scarcity of labor
in the anthracite regions, just as it has in the
bituminous regions, and now that the operators
have reason to tighten up on production, they
are beginning to realize just how many men
have been drawn away from the regions dur¬
ing the past year.
Shipments of anthracite for September were
made public last week, and these show for
the nine months of 1915, ending with Septem¬
ber 30, total shipments amounting to 47,379,-
111 tons, as compared with 50,067,580 tons for
the same period of 1914, or a decrease of
2,688,470 tons of shipments from the corre¬
sponding period of 1914. September ship¬
ments show a decrease of 727,421 tons as com¬
pared with September, 1914. Coal on hand at
tidewater shipping ports on September 30
amounted to 633,338 tons, as compared with
653,496 tons on August 31, showing a decrease
of 20,158 tons.
At New York harbor ports there is prac¬
tically no surplus of the domestic sizes, and
the demand for these sizes has grown so dur¬
ing the past few weeks that the full winter
circular may now be said to be in effect. In¬
dividuals are quoting egg at ten cents off cir¬
cular, but these instance are not so numerous.
Some of these same individuals have been able
to sell stove coal at an advance of ten cents
over the circular. Chestnut coal is in heavy
demand, and some of the individual producers
are sold up on the size for a month ahead.
The steam size situation continues to be in¬
teresting, especially to those people who con¬
tracted during the summer months for heavy
tonnages of these sizes at low prices. They
are now finding it very difficult to secure coal
at a price that will permit them to come out
even on their contracts. High grade buck¬
wheats are in good demand and in very
light offering. They sell at the full circular
price. Of the inferior coals $2.25 and up
is about the range on No. 1, $2 and up on
No. 2, and $1.80 and up on No. 3. Pea coal
is very scarce and sells for $3.25 up, according
to grade and port of delivery.
New York prices:
Upper Lower
Ports. Ports.
Broken . .$5.10 $5.00
Egg . 5.35 5.25
Stove . 5.35 5.25
Chestnut . 6.60 5.60
Pea . 3.55 3.45
Special grades of red ash and other high
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows:
Egg .
Stove
Nut .
Pea .
Buck
Rice
Barley
. $5.05 and up
. 5.20 and up
. 5.20 and up
. 3.25 and up
. 2.25 and up
. 2.00 and up
. 1.75 and up
The Bituminous Situation
The bituminous demand in the east is in¬
creasing from week to week, and this week
finds the market showing more strength than
heretofore. Some of the well posted men in
the trade predict that in the course of a few
weeks we are going to face a very serious
shortage of bituminous, and that prices may
advance radically over night.
Contract coals are moving just as freely as
production and transportation will permit.
Most of the large contract users, want their
full monthly quotas, and a great many of
them that only took a portion of their contract
tonnage during the summer months, are now
asking for shipments that will go far towards
making up the loss of tonnage during the
dull period. Manufacturing generally through¬
out the east is now on a seventy-five to 100
per cent basis, and certain favored plants that
have large war contracts are in many instances,
working day and night, call for heavier coal
shipments. Some of the very largest pro¬
ducers are said to have withdrawn quotations,
as they have plenty of contract business to take
their entire output at the present time.
Car supply on B. & O. has been very bad
in Somerset county especially.
Export shipments have fallen off, due to
the shortage of vessels. This situation is very
interesting and is fully covered on our export
page of this issue. Bunker requirements are
very heavy at this time, and some of the sup¬
pliers of these coals at the Atlantic ports be¬
lieve that this trade will be stimulated no little
bit by the diversion of steamers from the
Panama Canal. As steamers will have to go
longer routes to reach their foreign destina¬
tions it is predicted that bunker needs at the
Atlantic ports will be heavier than would be
the case if they were to use the Panama Canal
route.
At the New York harbor ports spot coals
are in very light supply, and prices are con¬
siderably firmer. Very little Quemahoning
coal is offering, and this sells readily at $2.85
and $2.90. Medium grades of Pennsylvania
sell at $2.65 and up, while $2.50 is about the
price on inferior grades of West Virginia.
Slack coal is selling at seventy-five cents and
up at the mines, according to the region.
The Vessel Situation.
The coastwise vessels are in ample supply
at the moment, but there are evidences that
a shortage may come about at any moment.
It is expected that some of the steamers and
schooners that are now taking coastwise coal
may be drawn into the export trade, due to
the stiffening of export rates. Moreover, the
movement of coal from the southern ports of
New England is showing signs of increase,
and it is expected that there will be a much
heavier demand for vessel tonnage from this
time on than has been the case heretofore this
year.
Export freight rates have advanced very
radically both to the Mediterranean and South
America.
We quote current rates on freight as fol¬
lows:
From Hampton Roads to Boston, eighty to
ninety cents is about the range; to Portland
and points east of Boston, from ninety cents to
$1. To sound ports, eighty to eighty-five cents.
From Philadelphia to New England points,
about five cents under the Hampton Roads
rates.
From New York to Bridgeport or New
Haven, thirty cents; to New London and
Providence, forty cents; to Fall River and
New Bedford, forty-five cents; to Boston, fifty-
five to sixty cents.
Current quotations on bituminous coal in
spot lots are:
F. O. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
$1.30
Ordinary .
1.05
Medium grades . .
1.15
Cambria County —
Best Miller vein .
. 3.00
1.45
Medium grades .
. 2.70
1.15
Cheaper grades .
. 2.60
1.05
Clearfield County —
Best grade .
1.35
Ordinary grades .
1.00
Indiana County —
Best grade .
1.25
Medium grade .
1.00
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
. 2.40
.85
Best o.?s, Ji-inrh lump .
Best grade, run of mine .
. 2.65
1.10
. 2.65
.90
Gas slack .
.75@1.00
New York Trade Briefs.
Practically all of the wholesale offices in
the lower part of Manhattan were closed on
Tuesday in observance of Columbus Day,
which is a legal holiday in New York state.
Charles McCaffrey, of Owen McCaffrey &
Sons, well known transportation people of No.
1 Broadway, recently spent a week’s vacation
in cruising and fishing on Long Island Sound.
W. S. Alden, of the Alden Coal Mining
Company, No. 1 Broadway, and E. D. Enny,
of the New York & Philadelphia Coal & Coke
Co., Produce Exchange, left on Wednesday
for a trip to Knoxville, Tenn.
J. H. Davison, New York manager for
Weston Dodson & Co., Inc., No. 17 Battery
place, who was laid up for several weeks for
an operation, was able to get back at his office
late last week, and is spending several hours
each day at his duties.
Chief Roderick, of the Pennsylvania State
Department of Mines, has named James J.
Stickler of Lansford, Pa., as inspector for the
Pottsville district. He will assume the posi¬
tion made vacant by the death of Inspector
John Curran of Pottsville.
Last week the miners at Ebbervale No. 7
mine of the G. B. Markle Company of Jeddo
went out on a strike. About 150 men quit
work because one of their members decided
he had been discriminated in the work that
he was doing and he quit the mine.
Car shortage is now being felt in the an¬
thracite regions. Towards the latter part of
last week several mines of one of the big
operating companies were closed because there
was not a sufficient number of cars available.
One reason ascribed for the shortage at this
time is the fact that a great deal of coal is
moving towards the lakes, and cars are not
returning to the mines promptly. Box cars
for all-rail western shipment are very scarce.
The Lehigh Valley Railroad Company on
Tuesday announced the retirement of Charles
S. Lee, passenger traffic manager, to take
effect October 31. Mr. Lee has been in con¬
tinuous charge of the passenger traffic of the
Lehigh Valley for twenty-two years. The po¬
sition of traffic passenger manager will be
abolished. George H. Lee, who on August 1st
became general passenger agent, will in the
future have entire charge of the passenger de¬
partment.
The Hazleton Sentinel, published in Hazle¬
ton, in the heart of the anthracite region,
states that representatives of the DuPont Pow¬
der Company of Wilmington, Del., have been
in the anthracite coal regions during the past
several weeks looking for machinists and pipe¬
fitters for service in the power company’s
numerous plants which are working day and
night on war orders. It is stated that quite
a number of young men from the anthracite
regions have accepted positions with the pow¬
der company at pay from $18 to $25 per week.
Comment was made in some of the bitu¬
minous offices at No. 1 Broadway this week
at the dearth of out of town visitors. Penn¬
sylvania bituminous operators who usually
make visits to New York city, are credited
with visiting Philadelphia during the past
week to witness the ball games. On the other
hand it is also pointed out that many of these
operators just now have about all the busi¬
ness they want, and do not have to come to
New York to seek outlet for coals that they
can produce in excess of their contract re¬
quirements.
New York’s coal men interested in exports
who have been interviewed are quite in the
dark relative to the big deal in West Virginia
coals that Charles E. Specht, of Johnstown,
Pa., is reputed, according to the Johnstown
papers, to have closed recently. It was stated
in these papers last week that Mr. Specht had
come to New York to close with the French
government a deal which would mean the
shipping of 200,000 tons of Pocahontas and
New River coals by November 1st, as well as
the purchase of 4,100 acres of coal land in
Pocahontas county. West Virginia. Accord¬
ing to these sources of information, the deal
was started in New York some time ago, be¬
tween a representative of the French govern¬
ment and Mr. Specht.
The closing of the Panama Canal by slides
for several months will no doubt have con¬
siderable effect on the export and bunker coal
trade. It will also cause considerable delay
in the plans of Charles M. Schwab, for obtain¬
ing ore from the Chilean ore properties for
his blast furnaces at Bethlehem. Before the
slides, this company had landed two cargoes
of ore at the new docks which the Lehigh
Valley Railroad is constructing at Bayonne on
New York harbor for the handling of this
business. These docks, now 300 feet long, arc
about half finished. It is understood that ship¬
ments of the ore will be held up until the canal is
reopened for transportation, as transportation
charges around the Horn would be too heavy
to make it possible to import the ore at fhis
time.
318
THE BLACK DIAMOND
[October 16
Philadelphia Trade.
Because Business Is Better, There Is a
Better Demand for Steam Coal —
Anthracite Firm.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, October 14.
Even the skeptics seem convinced that business
is booming and the .general sourness of pessi¬
mism has been scattered so far as the bulk of
the local trade is concerned.
Anthracite business has yet to feel the full
flush of the betterment in conditions, but the
effect of the up turn has already been felt in
several of the sizes. So far the weather has
been the disturbing element, but Indian summer
or whatever name you want to call warm fall
days, cannot last forever, and the winter’s need
for coal is as sure as death and taxes.
There has been a notable increase in inquiry
for pea sized coal and quite a volume is now on
the way to the yards of the retail dealers. Some
of the independents are holding this size at $2.15
and declare that they have no occasion to sell
lower than this their estimated cost of produc¬
tion. Most of the company’s coal can be bought
around $2.05, and it has been hinted that this
price has been made for deliveries up to the
first of the year. However, it is pointed out by
the representatives of the companies that this
price is subject to change without notice, so
that should the increased demand come in any
great volume the dealers who have their orders
in will be the only ones to share in the advan-
ta.ge.
Egg coal is the only size “off color.” In some
of the mines there has been resizing of egg coal
done, but so far there has been enough latitude
in price to make this advanta.geous and quite an
amount of egg is going into the bins for stor¬
age. Chestnut and nut coal are the leaders and
stove size has also had a good run.
The merry little price war that has been a
thorn in the side of the local retailers for many
moons is a.gain out in full force. Cuts ranging
from fifty cents on the ton and more has been
the cause of moving no more coal than ordi¬
nary (so one side says), but has caused consid¬
erable animosity in the districts and zones where
the price-cutters operate.
The Bituminous Situation.
The past week has seen the soft coal men in
clover. Free coal at the piers has been an asset
during the past ten days instead of a disadvan¬
tage. What cars could be had were taken at
prices that showed an advance over that asked
a few days ago. Western Maryland coal which
sold a few weeks ago around seventy-five and
eighty-five cents brought $1.12i4 to $1.15 a ton
the opening of this week. Other coal with Som¬
erset county as originating points showed healthy
advances and were hard to obtain.
The car shortage has hit the trade with a
heavy jolt. There are those who can see a
break in this situation as soon as the railroads
have finished with their stocking. It was at first
understood that this would be completed by
October 1st. Then the time was extended to
November 1st, and it was learned this week that
the Pennsylvania railway had extended their time
until the second week in November. Be that as
it may, every steel mill in this state is runnin.g
full time and are taking their toll of cars and
cold weather is bound to have an effect in the
moving of traffic — and there you are!
One of the effects of the stocking has been to
virtually withdraw all quotations from the
Greensburg field. Concerns that have been using
this kind of coal have found in the past ten days
that there is none on the market.
Fairmont slack is another grade of coal that
has disappeared from the quotation lists. Quo¬
tations ran.eing eighty to eighty-five cents have
failed to bring forth any of this coal that is in
such high favor in the cement district.
Most of the mines in the central Pennsylvania
district that still had coal to offer a couple of
weeks ago have announced that they are sold up
for the month and some have had their tonnage
for November snapped up.
One thing that has been a little in the mys¬
terious to the local trade has been the absence
of New England as a factor in this up-,going
market. It was offered as a prediction that were
demands to come from the upper ports there
would be no holding the prices that have been
bobbing upwards for the past couple of weeks.
Loading over the piers has fallen off to a de¬
gree in the past week. The lack of charters and
the heavy demand for grain boats has been the
cause.
Philadelphia News Notes.
R. O. Dunne, president of the Dunne Coal &
Coke Company of Pittsburgh, was a trade visitor
on Tuesday.
A. W. Calloway, president of the Davis Coal
and Coke Company, was in the local offices of
B. Nicoll & Co. last week.
J.. H. Alport, field man for Whitney & Kem-
merer, whose home is in Barnesboro, Pa., was
in Philadelphia this week.
S. A. Carson, general manager of the Southern
Connellsville Coke Company of Uniontown, Pa.,
was in Philadelphia this week.
L. A. Hamilton, formerly salesmanager of the
local office of the Watkins Coal Company, has
joined the local sales force of B. Nicoll & Co.
Seth C. Hetherington, of Hetherington & Co.,
has been appointed a member of the Foreign
Trade Committee of the Chamber of Commerce.
H. K. Stauffer of the local office of B. Nicoll &
Co. was on a western trip which included a two
days’ stop in Pittsburgh the fore part of this
week.
M. F. McDermott, general salesmanager of the
Four States Coal Company of Pittsburgh, was
in this city last week looking over the Eastern
situation.
James A. Hill, president of the Knickerbocker
Fuel Company of New York City, was a visitor
at the local office of the company on Monday
of this week.
A. M. Pershing, secretary of the Mountain
Coal Company and who is connected with sev¬
eral other companies operating in the Greensbur.g
district, was in this city early this week.
Salesmanager Gates of J. Tatnall Lea & Co.
was a visitor to the mining district in Cambria
county last week and made a survey of condi¬
tions as they have changed in the past couple
of weeks.
Walter A. Alden, of the Alden Coal Mining
Company of New York City, was noted among
the influx of coal men and those of other lines
who found this city a lodestone of attraction on
the opening day of the world’s baseball series.
Edward Harding, manager of the local office
of the Blaine Mining Company, was called to
Baltimore the latter part of last week on a sad
mission. He attended the funeral of his mother-
-in-law, who was buried in that city on Thurs¬
day.
Charles Ownes, president of the Shade Creek
Coal Mining Company, and J. Thomas of the
Smokeless Coal Company, both of Johnstown
and who are interested in the Imperial Coal
Company with headquarters in this city, were
visitors to the local office Tuesday.
A. K. Wri.ght, of the Grampian Coal Mining
Company, of Clearfield, was in this city early in
the week. He declared that the shortage of men
and cars in that section had reached an acute
stage and a great many of the operators were
away behind on their allotment of cars.
Freight charters for the coal trade are tighten¬
ing up once more to a point almost prohibitive.
With charters being made at outside figures for
any and all vessels that will carry grain, only
“tubs” can be found for coal transportation. Lo¬
cal companies who have tried to .get bottoms
this week have been asked exorbitant figures.
Edgar Cortright, who for the past eight years
has been superintendent of the Great Northern’s
lignite mines near Redlock, Montana, arrived in
this city last Friday on the way to visit his
parents, Mr. and Mrs. N. D. Cortright of Mauch
Chunk. He is on a leave of absence from the
company he has been with and it may be that
he will decide to remain in the East.
The collier Plymouth, sister ship of the
Franklin, made her trial trip on Wednesday of
this week and all being found right, she will be
on her way to the Mediterranean within a week,
a cargo being ready for her in Baltimore. She
has a capacity of 9,400 gross tons and is the
second of eight colliers that is being built for
the Coastwise Transportation Company of Bos¬
ton to take to the water.
Charles W. Mills of the Oimax Coal Company
has had further honors thrust upon him. He
was appointed by Secretary Wilson of the De¬
partment of Labor, as an arbiter in the trouble
that has caused considerable dissension between
the machinists and their employers in Pittsburgh.
Mr. Mills is a member of the commission ap¬
pointed by President Wilson to inquire into the
Colorado miners’ strike, and on which his asso¬
ciates are Seth Low and Patrick Gilday.
At the annual meeting of the Philadelphia and
Reading Coal and Iron Company held in their
offices in the Terminal Building on Monday of
the current week. President Richards and the
entire board of directors were re-elected to the
offices already held. The only chaages made in
the personnel of the associated companies was the
election of George C. Coughlin, city and south¬
ern sales agent, to the board of the Tremont
Coal Company, and Warren B. Smith, line sales
agent to the board of the Delaware Coal Com¬
pany, and the Preston Coal and Improvement
Company.
A concentrated effort developed in the middle
of the week to place a team to represent this
city in the golf tournament to be held at the Sea
View Qub near Atlantic City next Saturday and
Sunday and at which the golfers of the New
York trade intend to show their prowess. While
the movement was a little slow in getting under
way, by Wednesday of this week seven or eight
of the wielders of the brassie and the niblick had
consented to forming a team to give the proud
and haughty New Yorkers a tussle for honors.
Vernon Taylor, secretary of the Cambria
Smokeless Coal Company of Brockwayville, was
one of the trade visitors of the week.
An appropriation of $200,000 for additional
coal for use at the waterworks and other city
plants has been held up by common council of
this city against the recommendation of the
mayor that the necessary action be taken. Per¬
haps in no other city has there been such sub¬
terfuge employed as here to get coal without
actual money to pay for it. The city in getting
credit for this commodity does so on what is
known as a “donation plan.” Of this the mayor
said to council; “To purchase coal on the “dona¬
tion plan” is not only a violation of law and all
business principles and it leaves the city entirely
at the mercy of the contractors.” Coal is being
received at several of the pumping stations on
the donation plan, otherwise the city might be
out of water in many districts. Of this the mayor
has said : “This administration has been tryiag
to change this, not only because it is a great loss
to the taxpayers, but because it is a flagrantly
loose way of conducting municipal affairs.”
Baseball enthusiasts were in evidence last Fri¬
day and Saturday and again at midweek when
the deciding games of the world’s series were
being played in this city. Some of the dyed-in-
the-wool fans who were in our midst were W. F.
Coale of the Georges Creek Coal Company, Car¬
rol Patterson of the Carrol-Cross Coal Company
of Bloomington, Md., T. F. Kelly of the Kato
Coal Company of Kato, Pa., who chaperoned a
party made up of Messrs. Hoover and Peters,
and Dr. Tibbens of Kato and C. H. Long of
Mill Hall, Pa. William T. Greer, traffic manager
of the Lehigh Valley, was another of the rabid
ones. H. Kelly of the Vulcan Coal Company of
Snowshoe, who was on an auto trip to the Pan¬
ama exposition with his wife, found that this
means of locomotion was not fast enough to
get him back in time for the series, so he shipped
his “boat” home rather than take a chance on
missing the “opener.” F. W. Foedisch, as usual,
kept open house for the baseballists and took the
trip to Boston to root for the home team.
Indications are that quite a number of the
large consumers of steam coal around greater
New York city, will stock some bituminous
coal during the next several months, in an¬
ticipation of labor troubles in the spring. So
far coal consumers around New York city
have been very reticent about stocking be¬
cause of the fact that the harbor for months
has been so plentifully supplied with unsold
coal all the time and salesmen are so clamor¬
ous to dispose of these unsold lots of coal at
ridiculously low prices. During the past sev¬
eral weeks the coal supply of New York har¬
bor ports has materially reduced, and sales¬
men have not been pressing bargain lots on
consumers, and this has no doubt resulted in
the changed attitude of those purchasers who
are not looking about to make arrangements to
store coal in anticipation of labor and other
troubles.
The Baltimore & Ohio Railroad has bought
part of the Baltimore Car and Foundry Com¬
pany grounds at Curtis Bay to give new trackage
in connection with the $1,500,000 coal pier to
be built there.
No. 16]
THE BLACK DIAMOND
319
New England Trade
Boston, October 14. — {Special Correspond¬
ence.) — Boston has not recovered from the $3.60
f. o. b. cars Mystic Wharf bomb thrown into the
wholesale bituminous trade district by the Dar-
rpw-Mann Company a week or so ago. Dealers
are quoting privately all kinds of prices as a re¬
sult of this bomb, and some of the largest houses,
while adjusting themselves to the new conditions,
are, in the language of the sporting world, “stall-
ingr” for time to get “their second wind.” Presi¬
dent Grant of the New England Coal & Coke
Company has sent out the following letter to cus¬
tomers : “Gentlemen ; On account of the uncer¬
tain future of the coal market, we have already
been approached by some of our customers with
regard to closing contracts with them for the
j-ear commencing April 1, 1916. By reason of
our extensive storage and handling facilities at
Everett Wharf, together with our large fleet of
steamers, tugs and barges, in conjunction with
steel cars utilized from mines to tides, and our
numerous sources of supply of coal, we can as¬
sure our customers of receiving their fuel as
called for in the future as in the past. If you
are considering making a contract for coal for
future delivery, we solicit an opportunity to sub¬
mit our price and terms before you take definite
action.” The Darrow-Mann Company are not
giving out any figures, but it is understood that
they have booked a large tonnage for next sea¬
son. Their two steamers, to be delivered next
spring, aside from their barges, are capable of
supplying very nearly one-fifth of the coal im¬
ported into Boston each year.
The official spot f. o. b. car Mystic Wharf mar¬
ket for New River and Pocahontas is $3.60 to
$3.70 per ton, but it is an open secret that coal
has been offered recently at considerably less
than $3.60. Georges Creek coal at that point
seems to hold up well at $3.90 to $4.00, although
not a great deal is selling, owing, no doubt, to the
unsettled condition of other kinds. The bitu¬
minous market, however, has its bright side. The
contract demand is even better than it was a
week ago, owing to a further improvement in
general business throughout New England. The
war ammunition business in this section of the
country is simply booming, which spells a greater
consumption of bituminous. Advices from the
Fairmont, W. Va., district are that coal there will
unquestionably be selling at $2.00 to $3.00 per ton
at the mines within the near future. The Con¬
solidation Coal Company, it is understood, has
temporarily withdrawn quotations, indicating
that the company is sold ahead for some time.
This company has done an enormous export busi¬
ness, especially to Italy, where they have even
been supplying the lighting company of Rome.
The demand for all-rail Pennsylvania coal is
fairly good here on a basis of ninety cents to
$1.50 per ton at the mines, but the cargo business
is rather flat.
Retail dealers are very busy delivering anthra¬
cite to household consumers. They appear ex¬
tremely anxious to keep their bins well filled,
which would indicate that consumers’ demands
have by no means been filled. Wholesale anthra¬
cite dealers claim that business is better than it
was in October last year. It has been several
months since the buying has run ahead of last
year, and naturally the trade is greatly encour¬
aged. The demand seems to run largely to stove
and egg, and the important selling agents claim
prices for these grades are very strong. Inde¬
pendent shippers are not cutting prices openly,
but we know of one instance where a Cape
Cod manufacturer has turned down a big com¬
pany dealer because he could buy cheaper else¬
where. If there is any weakness, it is in nut,
the supply of which at the moment is in excess
of the demand. Cargo sales during the past week
have been confined largely to Boston, Lynn, Bev¬
erly and Pawtucket. All-rail buying appears to
have been scattered over a wide area. The down
east demand has improved, but Maine distrib¬
utors are still backward in re-orders. Car short¬
age at the mines is beginning to be reported and
it is generally believed here that early snows
would practically tie up the trade. Pea coal,
locally, is moving better, but cannot be called
really active. It sells at $4.05 per ton alongside
Boston Harbor, stove and egg at $5.85 and nut
at $6.10. At Mystic Wharf, stove and egg are
generally quoted at $6.20 per ton on cars, and
nut $6.45. At Portsmouth these grades com¬
mand fifteen cents per ton more. .
The amount of vessel space offering has
shrunk considerably during the past week, and as
a result the marine freight rate market is really
firmer, although not noticeably higher. From
Hampton Roads ports the general asking price
is from seventy-five to eighty-five cents per ton,
while from New York to Boston it is fifty to
fifty-five cents per ton.
New England Trade Notes.
A Lowell man recently won a ton of coal by
drawing it in a wagon over a stretch of road
about a mile long.
The Harlem Wood & Coal Company of Bridge¬
port, Conn., has changed its name to the Harlem
Valley Wood & Coal Co.
The schooner Brownstone of Hartford, during
the recent heavy weather, founded off the Con¬
necticut coast. No trace of the captain, his wife
and crew have been found.
Following are the receipts of anthracite and
bituminous at Boston during September and the
nine months ended September 30, together with
comparisons (in tons):
ANTHRACITE.
September —
1915.
1914.
Decrease.
By sea, domestic.
By rail .
. 146,683
177,117
30,434
20,039
8,157
Total .
Nine months —
. 158,565
197,156
38,591
By sea, domestic. .
By rail .
. 1,123,680
1,321,849
198,169
. 123,581
147,622
24,041
Total .
. 1,247,261
BITUMINOUS.
1,469,471
222,210
September —
1915.
1914.
Decrease.
By sea, domestic..
. 383,109
451,941
68,832
By sea, foreign...
. 27,946
. 6,553
14,129
*13,817
By rail .
3,846
*2,707
Total .
Nine months —
. 417,608
469,916
52,308
By sea, domestic.
. 3,502,225
3,764,267
262,042
By sea, foreign . . .
. 312,899
132,971
*179,928
By rail .
41,987
*18,493
Total . 3,875,604 3,939,171 163,467
^Increase.
Baltimore Trade.
Baltimore, Md., October 14. — {Special Corre¬
spondence.) — Every branch of the coal trade is
now hustling. Anthracite handlers here are be¬
ing pushed by customers for deliveries, the rush
starting when the past week brought in some
genuinely cool weather that required the start¬
ing of heating apparatus in home and place of
business. Bituminous producers are busy en¬
deavoring to get out coal as rapidly as possible
with the reduced mine forces brought about by
the drain from European war on reservists and
to move the fuel promptly under the urging of
customers and in the face of a more drastic
car shortage. Agencies here are busy trying to
get mine connections to give them the coal on
orders they find piling in now. Many coal opera¬
tions have notified agencies to withdraw quota¬
tions temporarily or to restrict sales to old-line
customers and the result is that just at a time
when more favorable prices become possible that
coal men are restricted in sales.
As a result of above conditions and the grow¬
ing demand from industrial consumers as nearly
every branch of manufacture is awakening, prices
for coal that is still available are stiffening.
Prices to the trade may be quoted about as
follows :
F. 0. B.
F. O. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
Run 01 mine .
$2.38@2.43
. .85
2.28
Slack .
2.18®2.18
Somerset —
Best .
2.6*
Good .
2.88
W. M. R, R.—
Freeport .
2.03@2.03
B. & 0,—
Freeport .
. 85® .90
2.03®2.03
P. R. R.—
Best South Fork .
. 1.40
2.58
Miller vein .
. 1.20@1.26
2.88@2.93
Ordinary .
. 90@1.00
2.08@2.13
One of the big complaints of the coal trade
here at present, at least that portion of it inter¬
ested in foreijgn sales of fuel, is that the grain
shippers continue to absorb practically all of the
available bottoms reporting here unattached, and
that the export movements from Baltimore have
been held down as a result. During the past
week a total of 27,564 tons was loaded here for
foreign delivery, and this would have been at
least doubled, say shippers here, had bottoms
been available. Only one charter was announced
here during the week, and that for the Mediter¬
ranean.
In an interesting statement concerning the
business of the Consolidation Coal Company,
President Jerre H. Wheelwright, in reality hands
out a summary of general coal conditions. First
he points out that despite industrial depression at
home that the export trade of the Consolidation,
which has totaled about 2,000,000 tons since Jan¬
uary 1, brings the total of coal handled by that
concern up to about 9,000,000 tons for the nine
months, or 1,000,000 tons a month, a record
breaking production. He speaks of the labor
shortage due by foreigners returning to Europe,
and of car shortage, and then announced that his
concern has temporarily withdrawn quotations
from the open market so as to care for the de¬
mands of contracts already on the books.
Buffalo Trade.
Buffalo, N. Y., October 14. — {Special Corre¬
spondence.) — The anthracite shipments by lake
showed an increase during the past week, being
126,200 tons, which is the largest record made
in some weeks past. The figures are hardly up
to the normal for this time of year and the rea¬
son is of course the large supply of coal remain¬
ing on the docks at the other end of the lakes.
Of last week’s shipments, Duluth-Superior took
60,900 tons; Chicago, 38,100; Milwaukee, 15,800;
Green Bay, 5,800; Sheboygan, 5,600.
The demand from dealers is now on a larger
scale and the companies are all having a pretty
fair run of business, a good deal better than that
of a month ago. One noticeable feature of the
market is the tightening of the car supply, owing
largely to the increased flow of grain to the sea¬
board. This movement will last for some time, it
is said, and cars will become increasingly hard
to get. The coal is not coming from the mines
nearly as promptly as a few weeks ago, though
dealers are not making much complaint as yet of
delays to their shipments. The companies’ repre¬
sentatives state that from now on it will be a
wise idea for dealers to place their orders, be¬
cause later it will not be so easy to get coal when
wanted.
The bituminous demand has been rriaking a
good gain recently and there is now evidence of
quite a little industrial improvement. The out¬
look is for considerably better business from
now until the end of the year, although the con¬
ditions in Canada are a good ways from being
satisfactory. If the Canadian market picks up,
there will be small cause for complaint among
coal men, and the prediction is made that it will
improve this fall, on account of the heavy wheat
crop and increased activity among industries.
Cars are getting scarcer and this causes a good
deal of delay to shipments. The railroads ad¬
mit that they are unable to supply cars as freely
as a few weeks ago and they are placing them
on a pro rata basis. Some operations have had to
close down for lack of cars for a day or two.
This shortage, together with the lack of labor, is
resulting in a stiffening in coal prices and these
are now much firmer than they were. The out¬
look is for a premium on slack coal within a
short time, as it is already hard to get in quan¬
tity and is selling up to top prices.
Denver Trade.
Denver, October 14. — {Special Correspond¬
ence.)— Stesidy gains in the volume of business
is reported this week by leading retailers and
jobbers. Decidedly lower temperatures are rul¬
ing in the mountain section and the nights are
cold. The week was ushered in by a half-inch
blanket of snow and local retailers have been
busy ever since.
Within a fortnight most of the sugar factories
will be running full blast and this is giving a real
impetus to the lignite business. In the northern
district the mines are running full time, and sev¬
eral operators have lately increased their force.
Lignite mines in other sections are also busy.
The Trinidad output is heavier this week than
for some time. That district is leading the state
in production, with Walsenburg a close second.
The mines recently started in the Canon City
district are also making nearly full time, and
substantial increases are noted in the district’s
tonnage. '■
Reports from Routt county state that they are
behind on the filling of orders, owing to the sud¬
den increased demand with the advent of colder
weather.
There is a good demand for all grades of slack
this week, and prices are very firm. There is no
immediate prospect of any surplus.
The following prices are ruling for lignite coal,
f. o. b. mines : For Denver delivered, lump, $2.35
to $2.65 ; mine run, $1.50 to $1.65 ; slack, $1.05 to
$1.25. For points outside of Denver, lump, $2.50;
mine run, $1.55 to $1.65 ; slack, $1.05.
320
THE BLACK DIAMOND
[October 16
3
An Assortment of Sizes of Hiawatha Coal Ready for Market.
The T. C. Keller Coal Company’s mines have a prodnctive capacity of 4,000 tons per day. More than 3,000 tons of this is held in reserve for a selected list of
retail dealers who handle only domestic coal. This photog'raph shows some of that coal loaded at the mines and ready for market.
The Mine and Service of T. C. Keller and Company.
Prior to 1906, the .T. C. Keller Coal Com¬
pany was producing coal in Indiana. It had
mines in the Sullivan, and later in the Clin¬
ton districts. It produced, therefore, at times
from the Number Five and the Number Six
veins, and later from the Number Four vein.
These mines it sold for a reason. Then Mr.
Keller and Mr. Steffens bought acreage in
Franklin county, Illinois. This was also for
a reason, which Mr. Steffens, who markets the
Keller coal, e.xplains as follows:
"From the Number Five and
Number Six veins in Indiana we
got a good coal, but it was not dis¬
tinctive. It was a steam coal which
every mine in Indiana and Illinois
had in abundance. We could get
nowhere by having merely what
everyone else had: we were in an
entirely too numerous company.
In the Clinton field we produced
Number Four coal. This is good
and is elastic enough to satisfy
both the domestic and steam trade
in a way. But it was not distinct¬
ively either. So neither of our
coals .got far enough out of the
ordinary to satisfy us exactly.
“What we were looking for was
a coal that occupied a class by it¬
self — a coal that was pre-eminently
good for some particular purpose.
That was why we bought in Frank¬
lin county Illinois. Even so, we
didn’t buy anywhere in Franklin
county. Rather, we bought only
the cream of that field, so far as
our purpose was concerned.
“What we wanted was a western
counterpart of Pocahontas coal —
one equally good for coking and
domestic use. We found one de¬
posit that stands alone in that
field. It is pre-eminently a domes¬
tic fuel; we have proved that. Also,
it is preeminently a coking coal.
These qualities gave us our dis¬
tinctive features and therefore the
coal we wanted.
"Our coal makes a coke that
runs less than one per cent in sul-
Hiawatha Coal.
With 7,000 Acres of Coal Land and 4,000
Tons a Day of Output, the Company Spe¬
cializes on Domestic Coal — How This Is
Done.
phur and is extremely low in phosphorus. This
makes of it a metallurgical coke. Those are
A Carload of Hiawatha Coal.
the two reasons we bought 7,000 acres of this
coal land.”
This quotation tells the whole story. The
T. C. Keller Coal Company owns 7,000 acres
of coal land in the heart of Franklin county,
Illinois. It has sunk one mine, with a pro¬
ductive capacity of about 4,000 tons a day.
Today it is producing domestic coal. Some
day it and another mine or two may be pro¬
ducing coking coal.
There is not now and never has
been a dollar of bonded indebted¬
ness on the company. While it is
a corporation, 100 per cent of the
stock is owned by Mr. Keller and
Mr. Steffens. It is really a part¬
nership that has taken out incor¬
poration papers. These two men
selected the coal because they be¬
lieve it is the best product of
Franklin county. They say that
their opinion is vindicated by the
fact that the United States Steel
Corporation’s holdings completely
surround their 7,000-acre tract.
This latter was bought after they
had acquired their land and proved
its value.
The present policy of this close¬
ly held company is clearly outlined
in this. With the exception of a
few steam contracts, for screen¬
ings. the output of the mine is re¬
served wholly for the domestic
trade. By using the same careful
reasoning that led them to con¬
clude that this particular acreage
would yield primarily a domestic
fuel and, when a need arose, a cok¬
ing coal, they set about to carry
their plans into effect. They
opened a mine with enough capac¬
ity to satisfy any reasonable pres-
8nt demand, present competition
considered. They can increase that
capacity at will. Next, they divid¬
ed up the work. Mr. Keller spe-
cliaizes on production. Mr. Stef¬
fens concentrates on sales.
The Keller Coal Company makes a specialty of domestic coal. That being' true,
its “leader” is the domestic lump. This photograph is of a carload of -that
coal ready for market.
No. 16]
THE BLACK DIAMOND
321
The Top works of the T. C. Keller Coal Company at Sesser, Illinois.
This plant, which was erected in 1906, has all of the features of the best mines in the bituminous field. It has the steel tipple for the preparation of the eg'g'
and lump. For the preparation of the smaller sizes, the conveyor carries the three-inch coal to the rescreeninEP plant where a set of shaker screens is
installed. The cylindrical hoppers have a larg'e storag'e capacity and will permit the loading of cars in a few minutes.
The Sales Policy.
Since at present the first aim of the com¬
pany is to sell domestic coal, its first con¬
cern naturally is to please and satisfy the
retail dealers. To do that demands two
things. The dealers must get a coal which
they can pass on without apology and they
must be sure of a dependable supply, or “coal
under all weather, business and railroad con¬
ditions.”
This was the problem which Mr. Steffens,
as sales manager of the Keller Company, had
to solve. He had to give personal service to
the retailers. That is, there must be such an
intimate relation between the Keller Coal
Company and the trade that to all intents
they were practically complementary parts
of one big agency for distribution. Mr. Stef¬
fens knew that this intensified personal serv¬
ice could not be given by one man to all deal¬
ers in so big a territory as the west. A con¬
cern owned and managed by two men could
not be the common servant of everybody in
eighteen states and hope to satisfy anyone.
On the contrary, the Keller Company must
concentrate on relatively a few customers
who were to be served. Accordingly Mr.
Steffens began to select from the vast num¬
ber of retail dealers those who could appre¬
ciate good coal and those who really wanted
to be served properly. In keeping with this
policy, the purpose of the advertising of his
organization is not to add great numbers of
buyers, but to add a few here and there who
can appreciate a good coal moving regularly
at fair prices from one source of supply. It
does not want numbers of buyers, but rather
quality.
Seeing what the big plan is, Mr. Steffens
conducts his sales department peculiarly when
compared with the general trade practice.
He has no salesman in Chicago. In reality,
he does not appeal to the domestic trade in
Chicago. The only coal ever sold there is an
odd lot of screenings now and then. He has
an office in Chicago, but its function is man¬
agerial. From there he sells coal over a big
An Interior of the Power House.
In keeping' with all other parts of the plant, the power house is modem in
every particular and is suhstantlal. It 'will he noticed that there are both
electrical and compressed air machines, since the company fits its equip¬
ment below ground to the conditions there encountered.
Supports of the Main Haulageway.
The interesting feature in this picture is the series of steel “I” beams which
support the roof. No expense has been spared to make this entry as near
permanent as possible. The theory is that substantial roof supports alone
assure uninterrupted working and hence a dependable supply of coal.
322
THE BLACK DIAMOND
[October 16
Hiawatha Coal in Its Native Haunts — the Keller Seam.
The claim is made hy the T. C. Keller Coal Company that its vein is in the best part of Franklin county, IlUnois, and that the vein here is as clean as any
coal found anywhere in the west. The picture which shows no partingr hears out the statement.
western territory, using the long distance tele¬
phone and telegraph extensively.
All of the salesmen of the company are
stationed in what are known as the outlying
districts. They are not mere tonnage grab¬
bers; they are not looking out only for the
single-car order. They do not “cover terri¬
tory.” Instead, they try always and only to
bring in a few new customers who are going
to be permanent “accounts” on the producing
company’s books.
A first rate example of what this policy
means is afforded by the office which is main¬
tained at Omaha, Nebraska. The man who
travels Nebraska and western Iowa does not
rush wildly over the whole territory, making
hurried calls on dealers between trains. In¬
stead, he goes over the territory leisurely and
thoroughly. On these trips, before he asks
a man to buy his coal, he makes sure that his
credit is good; that he has marketing facili¬
ties which are the kind which suggest relia¬
bility; and that the retailer is the kind that
the Keller Coal Company wants as an agent. In
other words, he makes sure that the man would
fit into the growing Keller family of retail
dealers. Such information about a retailer can¬
not be picked up “lictween trains” in one day.
For this reason, the Keller representative does
not go over his field in a rush and on a mad
quest for orders. He moves deliberately. And,
when he returns to his office, he has usually
added some new “accounts.” Incidentally the
use of the word “accounts” instead of “or¬
ders” in the office explains the whole policy
of the Keller Coal Company. Mr. Steffens
wants “accounts” rather than individual orders.
This is a logical development of the policy
which aims to serve a few well, rather than
to try to serve everyone indifferently.
if this policy is as good as it sounds, it
must have a definite expression of some kind.
It has, and that expression is this — in the
words of the head of the sales force:
“There has never been a time since 1906
when a regular customer of the Keller Coal
Company has been allowed to run short of
fuel, no matter what the circumstances. The
severe winter of 19H was no exception. The
times when car shortages came did not alter
the case. When the demand for coal has Ijeen
extraordinary as it is just prior to a strike,
the rule holds good. It does not make any
difference what the circumstances, the Keller
Coal Company in twenty-five years has not
disappointed any regular customers nor thrown
one of its regular patrons on the mercies of
the open market.”
It is said, too, that customers appreciate this
service and hence that the company loses no
“accounts.”
The Production Program.
Having such a decided sales policy, the Kel¬
ler Coal Company must have one to match it
at the mines. This policy must be one which,
automatically, will permit the company to do
wliat its sales representatives are saying that it
can do. Since the company says, for example,
that it produces mainly domestic coal, the mine
equipment should be designed to produce
mainly the domestic sizes of the very best
|)reparation. This presupposes an arrange¬
ment of screens which will size the coal as
the domestic user wants. It presupposes also
a character of underground equipment which
will yield the maximum percentage of the
domestic sizes.
To see that precisely this is done, the min¬
ing department is under the personal super¬
vision of T. C. Keller. Those who have vis¬
ited him at the mines may have gained the
impression that, for the president of a con¬
cern, he devotes entirely too much attention
to details. It is true that not a detail around
the mines escapes him. Some believe that his
policy is a mistaken one because when he is
at the mines, he is all over the workings all
the time and is inquiring into what everyone,
from the trapper boy up to the superintend¬
ent, is doing.
If this be a “mistaken zeal,” as some com¬
peting presidents of mining companies might
say, there is at least purposeful method in it.
For example, Mr. Keller knows that the nat¬
ural bent of a miner is to follow the line of
least resistance. Miners the world over are
alike in that particular. They do a thing in
the easiest way, regardless of consequences.
If the consequences are the degredation of the
coal, the miner is not concerned.
Also, the practical miner is a nomad. He
travels from place to place, all the while, and
in his travels picks up ways of doing things
from nearly every mining camp. The result
is that all miners have come to do things
about in the same way. This constant shifting
about of the working force establishes indeed
a sort of common mining practice. If an
operator has a distinctive way of doing things,
he must wean the practical miner away from
this composite practice of his craft.
Mr. Keller has his mind fixed on the pro¬
duction of domestic coal only and upon giving
it the best preparation. Since he wants to
sell domestic coal only, he wants to get the
maximum yield of that size from the mines.
To do that, he must be constantly keying up
his miners and hence interfering in details
around the mines. That e.xplains why Mr.
Keller pays so much attention to what others
consider the smaller matters. Still, when one
sees that the whole policy of the company
swings around preparation of domestic coal,
these are not “small matters” after all.
To help him carry out his policy, Mr. Kel¬
ler has mine equipment designed to produce
the maximum amount of the domestic sizes of
coal with the best preparation. For example,
the coal is taken from the seam in some
No. 16]
THE BLACK DIAMOND
323
places with compressed air machines. But,
where those will work the best, electric under¬
cutting machines are used. He has found by
experience that a vein will vary inside the
limits of a modern mine. Accordingly, he has
fitted the mechanical equipment precisely to
the needs of the vein.
This having been done, he supplies electric
lighting in the rooms so the men can work
and clean the coal there under l)CSt conditions.
Naturally, he has electric haulage to get the
coal quickly and cheaply to the shaft bottom.
The Mine Equipment.
The Keller mine was opened in 1 !)()(>, the
first coal being shipped to market in the fall
of that year. The plant now in use was built
at that time. Since then, a great many things
which are styled refinements of preparation
have been introduced into mines generally
and much is said about them. It is interest¬
ing to note that while he uses a dififerent
method, the mechanical skill of Mr. Keller
enabled him to provide ten years ago devices
which will do precisely the same thing others
are now spending so much money to do,
namely, to get a maximum of domestic sizes
and to clean those sizes thoroughly.
To avoid degradation, the coal is lowered
gently upon the shaker screens. There it is
sized into six-inch lump, six by three-inch egg,
three by two-inch nut, two by one and one-
half-inch stove, one and one-Iialf-inch liy three-
quarter-inch chestnut, all of which are avail¬
able for various uses around the household.
For example, the smaller sized coal is known
to I)e good for hot water heaters.
The company does not make an appeal to
the steam trade, except when it must move
the smaller sizes resulting from the produc¬
tion of lump. Thus it makes two-inch, or one
and one-half-inch, or three-quarter-inch screen-
ings.
Having thus arranged to get the maximum
yield of domestic coal, the Keller Coal Com¬
pany jjroceeds to make all needed arrange¬
ments to assure the kiml of service that the
retailers want.
One of the first things insisted upon by the
dealer is, of course, the accuracy of weight.
The Keller mine is located on the Chicago,
Burlington & Quincy Railroad. This line is
extremely careful to see that the marked tare
of the car is accurate. This it assures by put¬
ting the empty cars over its scales at regular
intervals. When that is necessary, it changes
the stenciled tare on the side of the car. The
Keller Coal Company depends upon the Bur¬
lington road, in the main, to see that the sten¬
ciled tare is correct. However, before it ac¬
cepts a tare weight, it makes sure that the car
is clean. Having done that, it notes the date
when the last tare weight was taken. If tliis
was more than four months before the date
the car is to be loaded, the empty car is put
over the company’s track scales and is weighed.
If, however, the tare weight has Iteen ascer¬
tained witliin four months, the tipple man con¬
siders that it is correct and the car is placed
for loading.
After being loaded, the car is weighed on
a track scale which is half way between the
tipple and the storage yard. These scales are
balanced every morning and are carefully
cleaned after every car passes over them. Once
a month, at least, they are subjected to a
thorough inspection and are repaired if neces¬
sary.
Tlie Keller Coal Conqiany also knows that
a retailer is anxious to get his supply of coal
regularly. To assure such a result, cars for
the transportation of the coal must be avail-
:ible. .\lso the compau}' must have room
enough at the mine to accommodate all the
cars it is going to load. .At the Keller mine,
there is an empty car track which will accom¬
modate 100 cars. In the Sesser yard, available
to this company, there is room for 1.50 emp¬
ties. Below the Keller tipple there is room
for 100 loaded cars, and in the Sesser yard
there is room for 200 loaded cars. This gives
all the storage room that could possibly be
used.
Transportation B'acilities.
The mine is located on the Chicago, Bur¬
lington & Quincy Railroad only. However,
that is one of the best equipped coal carrying
roads in the west and affords a market not
only to points local to its own line, I)Ut to all
jioints local to connecting carriers.
The output of the T. C. Keller Coal Com¬
pany is marketed under the name of Hia¬
watha coal.
[This article by The I.lack Diamonh is designated an
advertisement in compliance with the Postal I-aws of the
I'nited States as revised August 24, lhl2.1
Another View of the Vein in the Keller Mine at Sesser, Illinois.
324
THE BLACK DIAMOND
[October 16
The Hocking Valley Coal Trade.
CoLUMHUs, Ohio, October 14. — (Special Corre¬
spondence.) — There is continued stiffening of tlie
Hocking market, particularly on domestic sizes.
No mines need to remain idle for lack of busi¬
ness, but a number, including the big Sunday
Creek interests, are taking the stand that there
is no money in the Hocking coal trade under
existing labor and freight rate conditions, and
are letting the season go by default. This atti¬
tude makes stronger demands on mines that are
active. Capacity production is the rule. Steam
orders are gaining steadily, if slowly, in volume.
On no sizes, how’ever, are prices on old-time
prosperity basis. An early advance on domestic
is talked of. The present schedule, herewith
appended and in force up to Thursday, is firm ;
Hocking Valley —
3-inch lump .
^'inch lump .
Lgg .
Mine run .
Nut, pea and slack.
Coarse slack .
Washed Coals —
Egg .
Stove .
F. O. B.
Columbus.
$2.20
1.95
1.60
1.75@1.80
1.20@1.25
1.10@i.l5
F. O. B.
Mines.
$1.60
1.35
1.00
1.15@1.25
.60@ .65
.50® .55
2.35 1.75
2.20 1.60
Pomeroy, which is largely a domestic product,
is feeling the thrill of a strong rnarket. Dealers,
who have been tardy about providing for Pome¬
roy customers, are now urging up shipments.
Mines are working steadily, and in some instances
salesmen are instructed to accept no orders after
October 15 at present prices. Present quotations
F. O. B. F. O. B.
Pomeroy — Columbus. Mines.
2 and 3-inch lump . $2.25@2.30 $1.60@1.65
1^-inch lump . 2.15@2.20 1.50@1.55
Mine run . 1.75@1.80
Nut, pea and slack . 1.20@1.30 .55@ .65
The best grades of standard splint are in more
active demand at slightly better prices than have
prevailed before this year. On the other hand
some fields are working quite short time, and find
it impractical to increase circular. Screenings
are firmer than they were a week ago. Herewith
arc prices corrected up to Thursday ;
F. O. B. F. O. B.
West Virginia Splint — Columbus. Mines.
2-inch lump . $2.35@2.40 $1.40@1.50
•K-inch lump . 2.25 1.30
Mine run . 1.80@1.90 .35® .95
Low ash nut, pea and slack... . 1.55®1.65 .60® .70
High ash nut, pea and slack . 1.35@1.45 .40® .50
1 Fancy domestics are strong at the maximum
quotation. Some producers having sales offices
here are calling their men in from the road on
account of being sold up. If the demand con¬
tinues to grow in the same proportion as during
the past week or two an advance in prices is one
of the early certainties. Current quotations are :
White Ash —
Columbus.
Mines.
3-inch lump .
. 2.65
1.75
l!4-ir>ch lump .
. 2.40
1.50
Egg .
1.26
Red Ash —
Chunks .
. 2.75
1.85
Egg .
. 2.50
1.60
Screenings .
.60
Columbus retailers are enjoying a good trade
in spite of a persistent natural gas campaign that
has been run in the newspapers for several
months past. Prices are: Pocahontas lump,
$4.50; Pocahontas mine-run, $3.75; white and red
ash lump, $3.75; splint lump, $3.50; Hocking
lump, $3.25.
Columbus News Notes.
J. Earl Myers, manager of the Whitney-Kem-
merer Company, Pittsburgh, was a recent visitor.
E. F. Murchey, of the Morris Coal Company,
Cleveland, was in town last week.
V. G. Miller, of the Webb Fuel Company, Cin¬
cinnati, was recently calling upon the trade here.
J. iVl. Leonard, sales manager of the Brothers
Valley Coal Company, was one of last week’s
arrivals.
R. S. McGee, of the Carbon Fuel Company,
Cincinnati, was looking after business here last
week.
Edward E. Chester, of the J. H. Hillman &
Sons Company, was a recent caller upon the
Columbus jobbing trade.
A Simons, of Redfield, president of A.
.Simons & Son, paid a visit to headquarters of
the firm here last week,
H. W. Kelly, retailer dealer of Angola, Ind.,
was a caller last week at the headquarters of the
M-O-I Coal Association, of which he is one of
the directors.
The Gibson-Spence Coal Company have re¬
moved from the eighth floor to the eleventh floor
of the Columbus Savings & Trust building, the
change giving them double their former office
space.
F. M. Andrews, C. W. Huddleson, E. E.
Learned, Dwight Howard and M. E. Andrews
are incorporators of the Banner Coal & Coke
Company of Columbus. The capital stock is
$10,000. '
C. M. Anderson, western sales manager of the
Elk River Coal & Lumber Company, returned
on Saturday last from a trip to the mines at
Dundon, W. Va., on which he was accompanied
liy his force of traveling men.
E. E. Hazelton, manager of the Hazelton estate,
having coal interests in the Hocking valley, has
taken a road position with the Dean Coal Com¬
pany. Frank S. Stimmel, formerly of the retail
firm of Stimmel Brothers, Columbus, has gone
with the Dean company as city salesman.
The Ohio Board of Administration has awarded
to the Ohio & Pennsylvania Coal Company,
Cleveland, contract for approximately 1,000 tons
of mine-run, at the price of $1.79, delivered on
siding of the Cleveland State Hospital, for use
in that institution. The coal is to be Ohio mined.
Earl Welker, who some weeks ago absconded
with $577 funds of the Columbus Builders Sup¬
ply & Coal Company, instead of depositing them
in bank, is reported to be under arrest at Port¬
land, Ore. He was a trusted employe, and the
manager was at first inclined to the theory of
foul play when the young man disappeared.
As part of the financing scheme of the new coal
line being built between Columbus and the Ohio
river, authority has been asked of the Ohio
Utilities Commission to issue $1,000,000 five per
cent thirty year gold bonds. Request is also
made for increase of the capital stock from
$50,000 to $3,450,000. The company states that
it has already made an outlay of $1,364,000 and
expects to expend an additional $3,450,000.
The Franklin county courts has decided in
favor of the New York Coal Company in a suit
for royalities on coal lands leased to the Sunday
Creek Company. The plaintiff was given a judg¬
ment for $4,936 with accumulated interest on a
royalty basis of 7J4 cents per ton. Other suits
of like nature, involving the same parties, are
pending. The coal properties involved are near
Orbiston, in the Hocking valley.
Martin Ebersbach, president of the Puritan
Coal Company, Pomeroy, and R. L. France, sec¬
retary of the Detroit office, were in conference
here at sales headquarters Monday with Sales
Manager Kuhns. The Puritan is the largest pro¬
ducer of the Pomeroy field, and has kept going
steadily during the entire year. The last ship¬
ment was recently made on a 70,000 ton lake
contract.
Complying with the postal law of August 24, 1912, The
Black Diamond submits the following information to its
readers: This journal is published weekly at 1112 Man¬
hattan building, Chicago, Illinois. President and business
manager, A. T. Murphy, 1112 Manhattan building, Chi¬
cago, Illinois.; editor, G. H. Cushing, 1112 Manhattan
building Chicago, Illinois. Publisher, The Black Dia¬
mond Company, 1112 Manhattan building, Chicago, Illi¬
nois. Stockholders, A. T. Murphy, 1112 Manhattan
building, Chicago, Illinois; Samuel Kersten, 654 West
Jackson boulevard, Chicago, Illinois; John O’Neil, 226
La Salle street, Chicago, Illinois. There is no outstand¬
ing bond issue or mortgage of any kind on the publica¬
tion. (Signed) The Black Diamond Company, A. T.
Murphy, president.
Sworn to and subscribed before me this 20th day of
September, 1915. — G. L. Toale, Notary Public.
We are always pleased to receive inquiries
on Hocking, Pomeroy, West Virginia and
Kentucky steam and domestic coal.
The Seidenfeld-Hammond Coal Company
Murray, Ohio
NEW YORK COAL COMPANY
COLUMBUS, OHIO
Miners and Shippers of Specially
Prepared Domestic Coals
Also Manhattan Washed Coals
THE PEACOCK COAL CO.
Sole operators of
Genuine Peacock Pomeroy Coal
Capacity, 3,000 tons dally
Harrison Building Columbus, Ohio
The Gibson-Spence- Coal CoJS
Producers and Shippers
“Banner” Hocking “Blue Ridge” White Ash 3
“Valley” Cambridg'e . “Pine Mountain” Kentucky I
Anthracite — Pocahontas— Smithing *
Cols Savings b Trust Building - Columbus, Ohio
SUNDAY CREEK
COAL COMPANY
Outleok Building, Columbus, Ohio
The Lorain Goal & Dock Co.
Columbus, Ohio
Capacity 10,000 tons No. 8 Pbg.
Coal Daily
PEALE, PE
OP
AGO
REMBRANDT PEALE, President
H. W. HENRY, Vice-President and Traffic
Manager
Wm. B. OAKES, Treasurer
GRAND CENTRAL TERMINAL
NEW YORK
BITUMINOUS
VICTOR
E. E. WALLING, Vice-President
NORTH AMERICAN BLDG.,
PHILADELPHIA, PA.
COAL
u.S. patent Off
& KERR
NEW YORK
ANTHRACITE
COAL
GAS COAL
and COKE
Mention The B^-ack Diamond when writing advertisers.
i ■
1
Phe Black Diamond
VoL 55. No. 17
OCTOBER 23, 1915 $3.00 Per Year
Do Coal Men Want to Kill the Sherman Act?
Officials of the United INIine Workers of Amer¬
ica have suggested to the operating associations
and to individual operators that a joint move¬
ment be undertaken to persuade Congress to
modify the Sherman anti-trust law.
This proposal the operators are considering
seriously. Indeed, it will stand elaborate study.
While the proposal in all its phases must be
analyzed, perhaps the most important thing at
the minute is the fact that for the first time the
operators and miners are to join forces in any
legislative campaign. That in itself is promising
and an opportunity which should be embraced
while the mood holds. It is something at least,
which should be encouraged to continue as a
factor in coal. Assuming that joint action will
come, the circumstance raises two questions.
First, in view of the modified legislative pro¬
gram of the government, is this the proper time
to attack the Sherman anti-trust law?
Second, if not that, is some other program
more promising?
The first thing to consider in any attempt to
answer these questions is what the coal trade
really wants to do. Under that heading there
are two wants — those of the operators and those
of the miners. At a certain point these wants
dovetail. Before that point is reached, however,
they seem to run in quite opposite channels. That
being true, we will study them separately.
What the Operators Want.
Primarily what the operators want is to make
money out of the coal business. They have
created both small and large corporations, capi¬
talized for both small and large sums of money.
These corporations exist for profit only. The
operators want to make them profitable.
Secondarily, the operators are confronted by a
series of demands which are more or less social
in character. For example, the miners insist that
they should be paid not only a living wage, but
enough to make possible some of the pleasures
of life ; the miners are demanding better living
conditions, i. e., better sanitary conditions, enter¬
tainment in the mining camps ; the miners de¬
mand safety, which means the use of more appli¬
ances in mining; the miners demand compensa¬
tion for those that are injured and even pensions
for those who have grown old in the service.
The operators would grant all of these demands
if they could. Thus the secondary want of the
mining corporations is money enough to meet
these social obligations without robbing the stock¬
holders.
These two needs call for larger coal revenue.
Thus the two wants of the coal operator unite to
spell a desire for more money. The question is :
How is this money going to be obtained?
As elaborately argued heretofore, the coal
operator is confronted by an almost impossible
proposition in the fact that a coal supply which
is to last this country for approximately one
thousand years is made available for immediate
production. In order, therefore, to get the large
revenue it is necessary to control the business.
There are only two ways to do this, so far as has
been publicly discussed.
One of the ways is to form a bituminous coal
monopoly under private capital. The other is to
procure a change of the laws as will permit those
in the business to co-operate.
Heretofore the Sherman anti-trust law has
stood as a barrier against the realization of either
one of these plans. Therefore, on the face of it,
the proposed campaign of the miners against the
Sherman law seems to be a step towards the solu¬
tion of coal trade ideals.
What the Miners Want.
In America the whole labor situation is in an
intensified transition period from what it was
toward what is to be. As is the case in any
transition period, the time is one of storm when
the real issue is not clear. Still, what in general
the laborer wants is to get away from the old
conditions where brain or cunning got practically
The Proposal Is Made by the Miners,
But a Need to Make Cooperation Safe
May Dictate That the Obnoxious Old
Law Shall Stand.
all and when the worker got merely enough to
allow him to “get by.”
Primarily, what the miner wants is what every
other worker wants, namely, a different division
of coal trade revenue.
In the matter of detail, the miner wants enough
money to give him a better standard of living; to
give him better living conditions; more safety in
the mines, compensation for his injuries with¬
out having to fight for it, and, when he has served
long and faithfully, a pension to serve him in his
old age. Therefore, the miner in the ultimate,
wants the coal business to earn more money so
he may get more.
After the details have been thrashed out, the
ultimate wish of the miner is the ultimate wish
of the operator, namely, that the coal mining
business should be made more profitable. How¬
ever, the miner is confronted by precisely the
same trouble as the operator. The Sherman law
has stood in the way. It lias threatened that
complete organization of the miners which alone
could force the operators to grant the union de¬
mands. .41so, it has prevented the organization
of the operators, and thus has prevented them
from combining to collect from the public,
through united effort, the money which the min¬
ers want. These two things account for the
miners’ interest in having the Sherman anti-trust
law m.odified.
The Sherman Anti-Trust Law.
The Sherman law, which thus becomes the cen¬
ter of interest to both the operators and miners,
is easily divisible into two parts. The first part
consists of the first three _ paragraphs, which
clearly tie the law to the criminal code. These
paragraphs make it a felony to gain a monopoly
of anything, or even to attempt to gain a
monopoly.
The second part of the law goes into detail.
It is said there that it is unlawful for producers
to agree or to even allow other minds to meet
on a proposition in such a way as to affect the
price of anything to the whole people. This law
has been considered heretofore as a most effective
barrier to anything like an agreement of the coal
people upon anything.
So long as the Sherman law stood as the only
statute which regulated business, this paper
voiced the sentiment of all coal operators and
practically when it considered the Sherman law
as impossible. We have held, and still hold, that
standing alone, it tried to prevent the monopoly
but instead actually procured it. That is, busi¬
ness must have a master. The coal trade must
also have a master. It is impossible to give the
coal business a master when from 5,000 to 10,000
different concerns are going each as it pleases.
With the individual wish expressed in the unit of
industry, there is possible no program for that
industry as a whole. Therefore, the nation must
make choice of two things. It must be content
to have no coal trade program or it must modify
the law which compels each unit to remain sep¬
arate and apart from all others.
When fusion of these small units on common
points could not be made possible by agreement
and still obey the law, and since something in
unison must be done, the only way to get a trade
program was to lessen the number of individual
units by purchase or consolidation. The ultimate
end of consolidation, of course, is one compre¬
hensive organization. This means monopoly. On
this account we have said that the Sherman law
in the end procured the monopoly which at the
beginning it tried to avert.
However, that was true only so long as the
Sherman anti-trust law stood as the only regu¬
latory statute. Within the span of the present
administration the Sherman law has been supple¬
mented by two others. One is the Clayton bill
and the other is the Trade Commission bill. The
latter is supposed to be helpful to business by
permitting certain kinds of co-operation among
producing units, etc. The question now to be
considered is whether the passage of these other
two laws does not so change the attitude of the
government as to make it unnecessary and really
inadvisable 1o do away with the Sherman law.
That is, heretofore the Sherman act was the
only regulatory statute. Therefore, it made any
attempt to reach an agreement on anything a
criminal act. If an act even headed toward
monopoly or in any way restrained trade it was
as much of an offense as it was to monopolize
an industry.
Now, however, by the passage of the Clayton
bill and the Trade Commission bill, the Sherman
law becomes the law which regulates only the
illegal combinations of capital. It today stands
as a statute which can be used when necessary
to correct the practices of those who do not want
to co-operate. It stands mainly as the corrective
of those institutions which want to destroy the
smaller concerns that they may have undisputed
sway.
The theory of the new laws is that the small
units of business may co-operate to make their
enterprise profitable without making it oppressive
to the people as a whole.
So long as these three laws stand as they now
are, the probabilities .ire that business men will
co-operate under government regulation because
the}' must. But, while co-operating, they will
stop far short of monopoly because they do not
care to encounter the penal clauses of the Sher¬
man law. Thus necessity will force co-operation,
but fear of the Sherman law will throttle any
effort at driving a little fellow out of business.
A Danger Zone.
The great danger is that if the Sherman law
were done away with the enforced co-operation
under the Trade Commission act would very
quickly run into a monopoly. Seeing this danger,
many of the smaller operators are finding them¬
selves opposed to any change. They prefer to
keep the Sherman act in force as a corrective
measure and as really a powerful instrument to
drive men into regulated co-operation.
The Possible Alternative.
Those who see the coal trade in its larger
aspects are convinced that while we are well
started towards a program which will save the
coal trade from itself, we have not yet arrived
at a satisfying goal. That is, the major difficulty
of the trade remains unsolved. This difficulty
is that the supply of coal wliich must last the
country for a thousand years is still available for
immediate production. Therefore coal men may
co-operate as much as they please, but if by co¬
operation they succeed in making the present
business profitable they will only invite the open¬
ing up of new mines to destroy that possibility of
profit. Thus the mere act of making the busi¬
ness profitable by co-operation will destroy the
effect of the agreement by increasing competi¬
tion.
There is need, therefore, of some control of
coal deposits in such a way that production may
he limited. This, because of the size of the de¬
posits, is impossible by the use of capital. The
only ihing which can possibly attain that result
is for the government itself to hold the coal land
in reserve as part of the public domain and de¬
clare that in future no mine shall be opened until
the nation declares there is a use for it.
This suggests a possible alternative course
which the miners and operators working together
can procure. That is, they can carry on their
legislative campaign, not in trying to emasculate
the Sherman act, but they can seek to persuade
Congress to take the initial steps leading towards
a forced restriction of coal production.
326
THE BLA( K DIAMOND
[October 23
Can Coal Be Carried on Upper Mississippi?
Only recently the Interstate Commerce Com¬
mission made a ruling which seems to threaten
to give eastern coal the predominance in north¬
western markets because the freight rate now
shows a differential against western coal. The
fact which determined this was an order per¬
mitting an increase in freight rates on -western
coal of ten cents a ton, without the railroads
announcing a corresponding increase in freight
rates on eastern coal.
To those not intimately familiar with the coal
business, it seems strange that coal could be
hauled from West Virginia, Pennsylvania, and
Ohio to Minnesota and, regardless of a higher
average mine price, undersell coal from Indiana
and Illinois. The supremacy, however, is ex¬
plained by the fact that eastern coal has a rail,
water, and all-rail haul, whereas western coal
has an all-rail haul.
Being confronted by the alternative of losing
the northwestern market or finding some other
way to get the coal there, some of the western
operators are beginning to suggest;
Why not a rail, water and rail haul on western
coal also? That is, why not take Illinois coal,
especially, over the Mississippi river; dump it on
barges; move it to the northwest; transfer it to
the railroads, and thus complete the movement?
There would seem to be no obstacle in the way
of such a movement because eastern coal is mov¬
ing by rail to Lake Erie, by lake to the north¬
west, and by rail again to the interior. _
The western proposal brings up for discussion
a most interesting subject. From the Kanawha
district in West Virginia, from the Pittsburgh
district in Pennsylvania, and from the Fairmont
district in West Virginia, coal has been moving
down the Ohio and Mississippi rivers for fifty
^r sixty years. This seems to make the move¬
ment a success and at least possible. However,
recently one large company bought a mine be¬
cause it had a river connection. A little later it
sold it again because the river is a failure in
the opinion of this operator.
Another mine owner comments that the largest
river shipper has never paid a dividend. A third
mine owner comments to the effect that although
the Kanawha river has been navigable for over
a half century, the new mines which are being
opened in that district are shipping by all-rail
only.
In view of these facts, the natural comment
is made, by Illinois operators, namely :
“If the coal producing districts which have been
using the river routes for so long find them
impossible and now want to abandon them, why
should Illinois undertake it- Especially why
should Illinois undertake navigation on the upper
reaches of the Mississippi river when the lower
portions — which naturally are better, being deeper
— have already proved a failure?” There is quite
a good deal of pertinent logic in that question.
However, before considering it as either final
or binding, it is perhaps best to become acquainted
with an interesting discussion of this subject
by J. H. Bernhard, a member of the American
Society of Civil Engineers. It seems that in
March of this year, Wm. W. Harts, a member
of that society, read a paper on “rivers and rail¬
roads in the United States.” Some of his notions
did not exactly appeal to Mr. Bernhard, who
wrote a letter to the society which is far more
important than the paper which provoked it.
Mr. Bernhard, incidentally, is a gentleman from
Holland who was attracted to this country by
the tremendous and apparent opportunities for
water transportation here. He has been instru¬
mental in perfecting a design of boat which
will fit our streams. With it, he is reviving the
Warrior river traffic in Alabama with noteworthy
results. Recently he has undertaken to adapt
barges to the needs of the Mississippi river and
has made an experimental and demonstration trip
up that stream. In the paper in question he dis¬
cusses these various enterprises and gives some
facts and figures.
Among other things his opening statement chal¬
lenges attention immediately when he quotes
Charles S. Riche, lieutenant colonel of the Corps
of Engineers of the United States Army, as
pointing out in 1912 that “there are forty-three
different kinds of lock dimensions and twenty-six
various channel dimensions in the United States.”
Then he proceeds;
“As stated by the writer in an address before
the River Terminal Conference in St. Louis in
1914, ‘God alone could build a boat that would
meet economically such a variance of conditions.’
When Freight Rates are Thrown Out of
Line by Railroad Action, the Coal Men
Consider Using the River — What Bern-
hard Says.
The railroads, on the other hand, have a •uniform
track and permit a uniform height, • length and
width of car, so that a railroad car can go any¬
where in the Ihiited States, Mexico and Canada.
“The author, remarking that the traffic on the
majority of our inland water routes has de¬
creased, states, ‘It is apparent that the present
condition of our water routes, as to the depth
and availability of their channels, is in advance
of the use being made of them.’ Does this mean
that, in his estimation, further improvement is
not necessary? If this argument held true, the
poorer the roadbed or the poorer the street, the
less the reason for improvement. The author
wishes us to believe such when he states in his
next sentence ;
“ ‘Whenever streams do not show an increasing
traffic which is at least approaching the increase
in commerce in the region traversed, it shows
that the usefulness of the stream in question is
declining, and the necessity for continuing large
expenditures is open to doubt.’
“The writer’s contention is that the only re¬
sult of such decline should be the immediate in¬
vestigation of its cause.
“Although entirely in accord with Major Bur¬
gess, who places the cause of the decline on the
railroad rate, the writer would like to add to
this reason other equally important ones. Next
to the rate-anarchism, poor river terminals, ob¬
solete boats, the absence of proper connecting
links between existing routes, poor navigation
laws and regulations. Government assistance,
banking facilities, and insurance rates are equally
important as causes for the decline of water
transportation.
“The rate situation in the United States is a
natural result of former railroad abuse. The
rail rates form a most natural and impossible
fabric based on two faulty foundations; First,
‘charge what the traffic will stand’ ; and second,
‘any rate to meet water competition.’
“It is almost entirely correct to say that there
is no rail rate in the United States based on
cost plus profit, although the aggregate — the gross
receipts of the railroad — is calculated in that
way. In the preliminary report just published
by the Interstate Commerce Commission for the
fiscal year ending June 30, 1914, the average cost
of operating, for the railroads in the United
States, was given as 72.21 per cent of the gross
receipts, and the average receipts were 0.733 cent
per ton-mile. The rail distance between New
Orleans and St. Louis is 700 miles, which would
give, as the average charge, based on 0.733 cent
per ton-mile, $5.13. With these facts at hand,
examine some of the following rates in effect be¬
tween New Orleans and St. Louis.
“The rate for bran is $2.10; beef, $5.00; beer,
$4.20; bridge materials, $3.50; canned goods,
$5.20; cement, $3.50; coffee, $4.60; condensed
milk, $4.20 ; flour, $2.80 ; grain, $1.80 ; lumber,
$4.00; molasses, $4.10; nails, $4.40; nitrate of
soda, $3.40 ; paint, $4.60 ; rice, $4.80 ; salt, $4.30 ;
soap, $4.60; sugar, $3.40, and vehicles, $5.00.
“As will be seen from the foregoing, all these
charges are well below the average, but then
there might be water service between New Or¬
leans and St. Louis.
“Although rebates are forbidden by state or
Federal statutes, railroads grant them quite as
much today as at any time in the past, the only
distinction being that formerly they were granted
to individuals surreptitiously, and now they are
granted to cities and towns openly; the former
became illegal, the latter is legalized. These re¬
bates arise from the unjust practice of railroads
in basing rates to river points on water com¬
petition.
“The railroads say they must be allowed to
meet competition of the boats, otherwise the boats
will take their business between river points. The
Interstate Commerce Commission admits this
claim, and allows the railroads to haul freight
to river points at a loss, and then recoup them¬
selves for this loss by exorbitant charges to off-
fiver points. From these facts, one of two
things must be true ; either the railroads lose
money on all hauls to river points, or they get
excessive returns on hauls to off-river points.
It is plainly a rebate case — ‘robbing Peter to pay
Paul.’ The river towns are having their freight
hauled at the expense of the off-river towns,
and pay for this privilege with the loss of still
lower rates by boats ; and the public loses all
around.”
Mr. Bernhard on another occasion said that
he doesn’t believe the waterways of America are
at fault. The fault lies with the equipment which
we endeavor to use on them. That is, we have
been trying to do water borne commerce without
either the boats or the docks which fit into mod¬
ern conditions. He believes that the boat must
come first. On this score, he says that the design
of the boat must be, first, adjusted to the char¬
acter of the material it is going to have to handle
and, second, it must conform to channel condi¬
tions.
In speaking about the docks, he reaches the
obvious conclusion — which has been proved on
the lakes and on the Atlantic Coast — that a dock
must conform to the kind of boat which it must
load and unload. There can be no doubt that
the success of lake transportation is due entirely
to the harmonizing of boats and the docks. There
can be no doubt that the rapid growth of water¬
borne commerce in the east is due to the fact
that we first got the boats to carry coal only,
and then got docks which would load and unload
the coal with something approaching true effi¬
ciency.
On both scores, Mr. Bernhard is inclined to
insist that if we want to make the inland rivers
attractive, we must do in a measure the same
things there that we have done on the lakes and
on the Atlantic. We must get the boats to fit
the commerce, and then get the docks to fit
the boats.
Where the Government Fails
In his comment on the Government attitude
towards water-borne commerce, Mr. Bernhard
is inclined to be caustic and to accuse the Fed¬
eral Government of a complete lack of ability
to analyze its own action. For example, he says
that the one branch of the Government will
spend hundreds of millions of dollars to improve
the inland waterways while at the same time an¬
other branch of the Government is adopting a
policy which must kill the water-borne commerce.
That is, the rivers and harbors committee makes
preparation for waterway improvements and the
engineering corps of the army is kept constantly
busy making improvements. Then the Inter¬
state Commerce Commission not only permits,
but encourages the railroads to name rates in
A Type of Coal Barge on the Warrior River.
THE I5LACK DIAMOND
327
No. 17]
competition with river traffic which will kill the
river business.
The Experimental Trip
Speaking about a portion of the experimental
trip up the Mississippi river, Mr. Bernhard in
his paper says :
“These high terminal expenses are a serious
menace to water transportation with the old-
fashioned stern or side-wheeler, and are even
more unproportionate and out of all reason where
modern craft are used. The 1,000-ton, self-pro¬
pelled barge that went to St. P’aul from New
Orleans in August, 1914, brought this forcibly to
light. The most serious handicaps this barge
encountered were terminals ; in almost every in¬
stance it cost more to load and unload the cargo
than to carry it to the place of destination.
“The New Orleans freight was received,
watched, and loaded, including the receiving
clerk’s time, for a total of twenty-six and one-
half cents per ton. The time consumed for load¬
ing was five hours, or forty-six and one-half tons
per hour, during which time the barge expenses
increase at the rate of $3.86 per hour, or a total
of $19.30.
“At Jeffries, La., 554.6 tons of lumber were re¬
ceived, being loaded and unloaded by the ship¬
per. The loading took from Thursday at three
o’clock in the afternoon, until Monday at ten
o’clock in the morning, working night and day
and Sunday, a total of ninety-one hours, or six
and one-tenths tons per hour. The loading cost
the shipper twenty-seven cents per ton. Loading
the lumber on the barge cost, in time lost, ninety-
one hours, or $351.26. The entire cost of load¬
ing and unloading, to the shipper, was $245.72,
and this, together with the time loss to the barge,
expressed in dollars and cents, makes a grand
total of $807.35, as compared with the transporta¬
tion of the entire lumber cargo of 554.6 tons for
$998.37, or $1.80 per ton to carry the lumber
1,000 miles, and $1.46 to carry it to and from the
barge.
“VVith any proper semblance of an opportunity,
this lumber should have been loaded on the
barge in twelve hours, causing a saving in this
item alone of seventy-nine hours, $305, and it
is safe to say that what now cost $807.35 to load
and unload should not have cost more than $210,
under fair conditions, permitting an increase
or decrease in rate of sixty per cent.
“.A.t Hannibal, Missouri, 200 tons of cement
were loaded, at a total cost to the shipper of
$73, or 36.5 cents per ton. This was done in
seven hours, or at the rate of twenty-eight and
one-half tons per hour. As the best “terminal
facilities’’ were found here, a short description
follows, the writer’s criticisms being such as are
justified by usual and average conditions in
Europe.
“Hannibal is on the Mississippi, has a popula¬
tion of about 14,000, and has a fairly flat and
low bank. The city seems to be prosperous,
and its streets are well paved and clean. The
railroad station is practically on the river. The
main line and some switch tracks of the Burling¬
ton Railroad are near the “river terminal,’’ being
about eighty feet from the water’s edge. This is
partly due to the fact that the river hank does
not run in a straight line, hut is irregular. From
the switch track nearest to the water, the hank
has an easy slope to the river. The hank is
paved with irregular cobble-stones on which it
is very difficult to walk, so that there is little
wonder that the laborers who loaded the cement,
and crossed this path every minute for seven
hours, were far from efficient.
“The bank is approximately four feet above
the water level, the side having an inclination of
about fifteen degrees from the vertical. This
bank is made up of stone blocks which appar¬
ently were meant to be thrown neatly on top of
each other and thus form a bank, but the work
had been poorly done, for some of the stones
were lying in the river in front of the wharf,
and one^ could see the rock blocks on the bot¬
tom, close to the bank, so that any barge coming
near the bank and being gradually loaded, would
settle down on these sharp blocks, to the great
detriment of the barge bottom, and preventing a
quick departure after the boat was loaded.
“Just at what would be called the head of
this ‘river terminal,’ is the wharf shed of the
Streckfus Line. This projects into the river about
twenty-five or thirty feet, and in the angle formed
between this wharf-house and the quay, there
are some piles which are now rotten. To the
south of this bank, about '150 feet from the
Streckfus wharf, there is another wooden shed,
but on the bank, and at that point the river
terminal practically stops. A number of small
and very frail motor craft and rowboats are
anchored nearby, the outermost one about thirty
feet from the river bank.
“The writer desires to state that he is not
exaggerating, but is really describing what he
believes was the best landing place on the Mis¬
sissippi river at that date (August, 1914), with
the exception of New Orleans, and equal to
those at St. Paul or St. Louis.
“On this bank the barge was to receive 200
tons of cement, at a rate of fifty cents per ton
less than that by rail — or at two-thirds of the
rail rate. It might be stated here that, besides
the loss in time to the barge, the shipper, who
saved $100 on his 200 tons by freight rate dif¬
ferences, paid $103 for loading and unloading,
causing in the final transaction a loss to him of
$3, notwithstanding the fact that the rail rate
for a distance of 400 miles was reduced thirty-
three per cent by the barge.
“Owing to the slope of the wall and the visible
rock at the bottom of the river, the barge was
lying about three feet out from the bank; luckily
her bow happened to be at just about the same
height as the river bank. The Atlas Cement
Company, which was to load the cement, had
arranged everything to the best of its ability.
The cement was in eight box cars on the side
track. To bridge the three feet gap between
the barge and the shore, a temporary platform
was constructed.
“The contract of transportation made with the
.^tlas Cement Company stipulated that the barge
would carry no terminal facilities, or any fa¬
cilities whatsoever for the handling of freight
(not even a gangplank) and that the loading and
unloading was to he at the expense of shipper
and consignee. The only gang-plank on the
barge was a two by ten inch board for the crew.
“'The cement was taken from the cars and
placed on horse-drawn dump-carts, which were
then drawn across the eighty feet of bank to the
platform, where they were dumped; there the
liags of cement were loaded on hand trucks and
rolled on deck to the place provided. This meth¬
od of loading (at the best terminal on the Mis¬
sissippi river except New Orleans) was the
cheapest and occupied the least time.
“While the barge was being loaded, a deck¬
hand was kept busy sounding for rocks, in order
to prevent the barge from sticking on one of
them.
“A switching engine was kept in waiting to
move the box cars up to the place where they
could be unloaded. The loading was done at
the rate of twenty-eight tons per hour. The
wages of the engine driver and fireman amounted
to, say, eighty-four cents per hour; or, only on
their account, the cost of loading increased three
cents per ton ; or, on the tonnage moved in
this instance alone, their idle time would have
paid interest for the entire year on $100 worth
of terminal equipment.
“On the overhead charges of the barge, the
hook charges, hull insurance, and liability insur¬
ance, are affected directly by the time of loading.
Indirectly, the traveling expenses and administra¬
tion charges are increased ; to this is to be added
the proper proportion of wages, and fuel for
light, subsistence, supplies, and tarpaulin hire,
which gives the amount to be used in calculating
the money loss during the loading and unloading.
For fifty-hour days and eight hours, this gives :
Overhead book charge . $ 819.18
Hull insurance . 221.68
Liability insurance . 25.13
Wages . 2,244!i3
Traveling and administration expenses . 1,017.52
. 29.10
.Subsistence . 400.00
Deck supplies . 270.72
^ $5,027.52
or $3.86 per hour.
“The total cost of loading and unloading the
barge on this trip was $1,733.12, or sixty-three
per cent of the gross freight receipts.
“As a final word about the problem of inland
navigation, the quarantine regulations which have
to be contended with are worthy of a few re¬
marks. Should there be bubonic plague in New
Orleans, and should a vessel leave for foreign
harbors with a health and inspection certificate
from the Federal health officers, then such ves¬
sel will see such certificate honored wherever it
goes; but should the authorities in the first har¬
bor it touches desire to have it go through cer¬
tain formalities, then at least all subsequent har¬
bors will not further bother the vessel regarding
its stay in New Orleans; but should a craft turn
its prow upstream, and dare to remain within
the jurisditcion of the United States officials, then
any city or state health officer, regardless of any
reasons to the contrary, and indifferent as to
the number of former inspections and fumiga¬
tions, may, on the boat’s arrival within his “sphere
of influence,’’ stop, inspect and fumigate to his
heart’s content; and so it came about that this
steel barge, which was in New Orleans only six
hours during the daytime, while the loading was
in progress, and had been officially declared “ab¬
solutely rat-proof,’’ was frequently detained by
the various health officials along the route until
the very end of its journey. At St. Paul, 1,921
miles from New Orleans, thirty-five days after
its departure, it received its last health inspec¬
tion, although it had lain five days off Jeffries,
three days at St. Louis, and shorter periods at
various other places, had been officially fumi¬
gated, and had had hundreds of visitors. The
writer firmly believes that it escaped more seri¬
ous delay because many officials were puzzled
as to how to fumigate such an air-tight steel
structure, which had an open engine-room and
pilot-house, carried its freight out in the open
on deck, had its hold sealed with water-tight
1)ulkheads, and had a deck without hatches. It
is possible that some of these inspections were
due more to curiosity about the construction of
the barge than to sanitary reasons.
“The barge left on July 6th, at four in the
afternoon, and returned on August 29th, at two
in the afternoon, a total of fifty-four days and
eight hours, including loading and unloading; and
during that time covered 3,843 miles, spending 240
hours and forty-five minutes in loading and un¬
loading 1,182 tons. She lost eight hours and four
minutes on account of engine trouble, was
grounded for 174 hours and ten minutes, or wait¬
ing for the pilots to ascertain the location of the
channel, notwithstanding the fact that at no
time was a less depth than six feet found.
'The barge carried coffee, rice, sugar, cement,
molasses, lumber, flour, paper, and chemicals.
Out of the total of 1,921,000 up-stream ton-miles
capacity, it delivered 1,066,986 ton-miles, and of
the 1,921,000 down-stream ton-miles, it carried
183,181 ton-miles, or a total for the round trip
of thirty-two per cent of the barge’s capacity.
The total gross receipts were $2,762.57, or 2.2 L
mills per ton-mile; the same freight moved by
(Concluded on page 332)
Coal Barge at a Dock on Warrior River.
328
THE BEA( K DIA^rOND.
[October 23
The Coke Industry in 1914
The production of coke in 1914 was the small¬
est, except in 1908, in ten years, or since 1905,
and amounted to 34,555,914 short tons, valued at
$88,334,217. Compared with 1913, when the pro¬
duction was 46,299,530 short tons, valued at $128,-
922,273, the output in 1914 decreased 11,743,616
short tons, or 25.4 per cent, in quantity and $40,-
588,056, or 31.5 per cent, in value.
The value of coke has a marked tendency to
follow the rate of production, answering in a gen¬
eral way to the law of supply and demand.
Prices in 1914 fell gradually, with slackening de¬
mand and decline in output, from the beginning
of the year to the end, the result bein.g an aver¬
age value obtained at the ovens of $2.56, as com¬
pared with $2.78 in 1913. The decline in value
was shared almost equally by beehive and by¬
product coke, the former declining from $2.39
to $2.15, or ten per cent, and the latter from $3.82
to $3.39, or eleven per cent.
The cost of coal to the manufactured per ton
of coke produced in 1914 was $2,166, or prac¬
tically the same as in 1913 ($2,169), and this fact,
considered with the decrease in average value for
the coke, indicates that the actual returns to the
producers were relatively less in 1914 than in
1913.
Of the 34,555,914 tons of coke made in 1914 in
the United States, 23,335,971 tons were beehive
or oven coke, valued at $50,254,050, and 11,219,-
943 tons, valued at $38,080,167, were by-product
or retort coke. In 1913 the production of oven
coke was 33,584,830 tons, valued at $80,284,421,
and that of retort coke was 12,714,700 tons,
valued at $48,637,852. From this it appears that
only 12.7 per cent of the decrease in quantity was
in by-product coke and 87.3 per cent was in oven
coke.
The decrease in the production of retort Coke
in 1914 was 1,494,757 short tons, or 11.8 per cent;
the beehive output decreased 10,248,859 tons, or
30.5 per cent. With the exception of two years,
1908 and 1914, the production of by-product coke
has increased each year since the first ovens were
completed at Syracuse, N. Y., in 1893. Except
in 1909 the percentage of by-product coke to the
total has increased each year ; in 1901 it was 5.4 ;
in 1910 it was 17.1; in 1912 it was 25.3; in 1913
it was 27.5; and in 1914, 32.5. The average
value per ton for oven coke in 1914 was $2.15
a.gainst $2.39 in 1913. The average value for
retort coke was $3.39 in 1914 as compared with
$3.82 in 1913. As explained in previous reports,
the higher value of retort coke is due not to the
superior quality of that product but to the fact
that the retort ovens are located at considerable
distances from the coal mines and at or near the
centers of consumption where markets for the
gas and other by-products as well as for the coke
are available. Hence the expenses of transporta¬
tion are borne by the coal and are added to the
value of the coal as charged into the ovens. An
equivalent value is necessarily added to the coke.
The beehive and similar types of ovens are, on
the other hand, located in the immediate vicinity
of the mines and the expenses of transportation
are borne by the coke, and the beehive coke thus
costs the ultimate consumer as much as the ap¬
parently higher-valued retort coke.
Connellsville coke has for many years been the
standard furnace coke of the United States and
the Connellsville re.gion is the only one for which
weekly reports on the trade conditions are made
to the technical journals. The Connellsville
Courier presents each week a comprehensive re¬
view of conditions affecting the demand and the
prices for the commodity which has been the
mainstay of the region.
The coal consumed in the manufacture of coke
in 1914 was 51,623,750 short tons, valued at $74,-
949,565, as compared with 69,239,190 tons, valued
at $100,561,439 in 1913. The value of the coke
made in 1914 was $88,334,217, the difference be¬
tween the cost of the coal and the value of the
coke made from it being $13,384,652, which, less
the cost of manufacture and expenses of admin¬
istration, represents the profits on the coke-mak¬
ing operations. In 1913 the value of the coke
was $128,922,273, and the difference between that
and the cost of the coal was $28,360,834.
In 1913 there was a net increase of 420 in the
total number of ovens, although 2,833 ovens, all
of the beehive type, were abandoned during that
year. At the close of 1914 there were 2,895 less
ovens in existence than at the be,ginning of the
year. There were 192 retort ovens constructed
during the year, out of a total of 779, so that the
new installations of beehive or partial combustion
type aggregated 587. The total number of ovens
and retorts in operation in the United States de¬
creased in 1914 from 102,650 to 99,755, a net loss
of 2,895. As the retort ovens showed an increase
of 121, there was a net decrease of 3,016 in the
number of beehive ovens in existence in 1914
compared with 1913. In addition to the number
of ovens abandoned during 1914 there were 45,117
idle, of which 667 were retorts and 44,450 were
beehive ovens. The 44,450 idle beehive ovens
included 21,801, which were the entire equipment
of 177 idle establishments. The statement re-
gardin.g the number of idle ovens represents only
those which were idle during the entire year and
does not include any ovens which were idle dur¬
ing a portion of the time only and which con¬
tributed to the output in 1914. The number of
ovens and retorts in blast during the whole or a
portion of 1914 was 54,638, as compared with 72,-
008 active ovens and retorts in 1913. The 54,638
active ovens and retorts included 5,142 retorts
and 49,496 beehive ovens. As the 5,142 retorts
produced a total of 11,219,943 tons of coke, the
average production for each retort was nearly
2,200 tons; the 49,496 beehive ovens produced 23,-
335,971 tons, or an average of a little over 470
tons per oven. In 1913 there were 5,531 retorts
which produced an avera.ge of 2,300 tons per oven,
and 66,477 beehive ovens which produced an aver¬
age of 505 tons per oven. The new ones in course
of construction at the close of 1914 numbered
1,249, of which 644 were retorts and 605 were
beehive ovens.
The tendency to consolidate into large units is
exhibited in the manufacture of coke, as in other
branches of industry, and the number of coke¬
making establishments has shown a steady de¬
crease since 1909, when, on December 31, there
were 579 coke-making establishments in the
United States. At the close of 1910 the number
of establishments had decreased to 578, at the
close of 1911 to 570, in 1912 to 559, in 1913 to 551,
and in 1914 to 536. Although the total number
of establishments in the United States decreased
15 in 1914, the number of by-product plants in¬
creased four, whereas the plants usin.g beehive
ovens decreased 19. There were 5 establishments
with a total of 231 ovens ‘under construction at
the close of 1914. Four of the new establish¬
ments with a total of 171 ovens were retort oven
plants.
The statistics of production of coke in 1913 and
1914 are presented, by states, in the following
tables :
Production in Previous Years.
The first record of the quantity of coke made
in the United States was in 1880, when, accord¬
ing to the report of the Tenth United States
Census, the production is stated to have been
3,338,300 short tons. The annual production since
1880 has been published in this series of reports,
the present chapter completing the record of
thirty-five years, which is shown in the follow¬
ing table:
QU.\NTITY OF COKE PRODUCED IN THE UNITED
STATES, 1880-1914, IN SHORT TONS.
1880 .
1898
1881 .
. 4.113,760
1599 . . .
1882 .
. 4,793,321
1900 . . .
1883 .
. 5,464,721
1901 ...
1884 .
1902 ...
1885 .
1903 ...
1886 .
. 6,845,369
1904 ...
1887 .
1905 ...
1888 .
1900
1889 .
1907 . . .
1890 .
1908 ...
1891 .
1909 ...
1802 .
. 12,010,829
1010 . . .
1893 .
1911
1894 .
1912 ...
1895 .
. 13,333,714
1913 . . .
1896 .
1914 ...
1897 .
. 13,288,984
. 19
. 20
. 21
. 25
. 25
. 23
. 32
. 36
. 40
.39
.41,
.35
,047,209
,668,569
,.533,348
,795,883
,401,730
,274,281
,661,106
,231,129
,401,217
,779,564
,033,518
,315,065
,708,810
,551,489
,983,599
,299,530
,555,914
Of the fifteen coke-producing states for which
the statistics may be separately published, there
were three in which the production increased in
1914, and twelve in which the output decreased.
More than seventy per cent of the total decrease
was in Pennsylvania, which showed a decrease
of 8,495,051 short tons out of a total for the
United States of 11,743,616 tons. The largest
percenta.ge of decrease was in Georgia, which
was 18,230 tons, or 42.7 per cent, less than in
1913. Virginia with a decrease of 40.1 per cent
and New York with 39.7 per cent followed
Georgia in order of percentage of decrease.
Ohio with a gain of 169,792 tons, or 48.3 per
cent; Kentucky, with 126,875, or forty per cent;
and Washington, with 8,702 tons, or 11.4 per
cent, were the only States reported separately
that recorded increases in 1914.
In the following table is shown the produc¬
tion of coke by states durin.g the last five years,
with the increase and decrease in 1914 as com¬
pared with 1913 :
State —
Alabama .
Colorado .
Georgia .
Illinois .
Indiana .
Kansas .
Kentucky .
Missouri .
Montana .
New Jersey. . •
New Mexico...
New York .
Ohio . . .
Oklahoma ^ •
Pennsylvania .
Tennessee . . • .
Virginia .
Washington . .
West Virginia.
Maryland .
Massachusetts . .
Michigan .
Minnesota .
Utah.... .
Wisconsin .
Establish¬
ments.
4fi
1.5
2
4
f>
1
y
3
1
4
4
7
2
2T()
1.5
18
f)
124
Total
551
Alabama . 38
Colorado . 14
Georgia . 2
Illinois . 4
Indiana .
Kansas .
Kentucky .
Missouri .
Montana .
New Jersey .
New Mexico .
New York . .
Ohio .
Oklahoma .
Pennsylvania .
Tennessee .
Virginia . 1”
Washington . . ^
West Virginia . ^
Maryland .
Massachusetts .
Michigan .
Minnesota .
Utah.... .
Wisconsin .
1
9
.3
1
4
1
5
o
274
14
10
Total
530
'URE OF
COKE,
BY STATES,
IN 1913
AND 1914.
1913.
Yield
/ - Ovens - N
of Coal
Coke
Total
Built.
Building.
Coal I'sed
in Coke,
Produced
Value
bhort ions.
Pet.
Short Tons.
of Coke.
per Ton.
10,284
20
5,218,323
63.6
3,323,664
$ 9,627,170
$2.90
3,588
1,349,743
65.1
879,461
2,815,134
3.20
251
82,871
51.5
42,747
186,304
4.35
568
58
2,481,198
74.9
1,859,553
8,593,581
4.62
749
2
41
3,535,136
77.1
2,727,025
13,182,136
4.83
1,049
100
512,245
61.9
317,084
753,897
2'38
56
351
150
339,351
75.4
255,792
695,041
772
1,030
788,172
59.4
467,945
1,548,536
3.31
555
1.067,207
71.1
758,486
3,301,400
4.35
471
ii9
507,417
69.3
351,846
1,231,554
3.50
200
55,058
582
43,195,801
66.6
28,753,444
67,929,864
'2].36
2,427
694,085
52.5
364,578
925,430
2.50
5,695
ioo
2.015,259
64.7
1,303,603
2,840,275
2.18
331
118,786
64.2
76,221
432,770
5.68
17,826
35
4,034,251
61.3
2,472,752
5,504,416
2.23
2,005
210
3,299,345
71.1
2,345,329
9,354,765
3.99
102,650
1,321
69,239,190
66.9
46,299,530
.$128,922,273
$2.78
1914.
9,285
4,678,196
65.9
3,084,149
$ 8,408,443
$2.73
3,573
1,048,251
63.5
666,083
2,203,031
3.30
201
45,298
54.1
24,517
100,529
4.10
580
40
1,932,132
73.8
1,425,168
5,858,700
4.11
780
2
33
3,125,207
72. S
2,276,652
9,055,937
3.98
1,151
672,624
66.0
443,959
971,060
2.19
56
351
150
328,921
77.6
255,283
680,972
2.67
1,030
660,501
54.9
362,572
1,228,045
3.39
555
ioo
659,418
69.0
457,370
1,726,133
3.77
538
51
745,097
70.0
521,638
1,678,686
3.21
260
54,075
867
30,286.961
66.9
20,258,393
42,447,886
2.10
2,303
12
487,446
54.2
264,127
642,573
2.43
5,435
1,319,901
59.2
780,984
1,582,419
2.02
336
133.349
63.7
84,923
472,.531
5.56
17,120
2,316,309
01.6
1,427,962
2,847,284
1.99
2.015
90
.3,181,139
69. S
2,222,134
8,429,988
1
i 3
90,755
1.249
51.623,750
66.9
34,555,914
$88,334,217
$2.56
No. 17]
THE BLACK DIAMOND
329
QUANTITY OF COKE PRODUCED IN THE UNITED STATES, 1910-1914, BY STATES, IN SHORT TONS,
WITH INCREASE AND DECREASE IN 1914. , - Decrease - ^
State —
1910.
1911.
1912.
1913.
1914.
Quantity.
Pet.
Alabama .
. 3,249,027
2,761,521
2.975,489
3,323,664
3,084,149
239,515
7.2
Colorado
•
. tl.346,211
951,748
972,941
879,461
666,083
213,378
24.3
Georgia .
. 43,814
37,553
43,158
42,747
24,517
18,230
42.7
Illinois .
. 1.. '■>14, 504
1,610,212
1,764,944
1,859,553
1,425,168
434,385
24.5
Indiana .
. t
. . . . J
916,411
t
2,616,339
t
191,555
2,727,025
2,276,652
450,373
16.5
Kentucky .
66,099
317,084
443,959
■*126,875
*40.0
New Jersey . . • •
New Mexico . . .
. t
t
270,429
255,792
255,283
509
.02
. 401,040
381,927
413,906
467,945
362,572
105,373
22.5
New York .
. 652,459
686,172
794,618-
758,486
457,370
301,116
39.7
Ohio .
. 282,315
311,382
388,669
351,846
521,638
*169,792
*48.3
Pennsylvania . .
. 26,315,607
21,923,935
27,438,693
28,753,444
20,258,393
8,495,051
29.5
Tennessee .
. 322,756
330,418
370,076
364,578
264,127
100,451
27.6
Utah .
. §
t
t
t
t
t
t
Virginia .
. 1,493,655
910,411
967,947
1,303,603
780,984
522,619
40.1
Washington
. 59,937
40,180
49,260
76,221
84,923
*8,702
*11.4
West Virginia..
2,291,049
2,465,986
2,259,589
2,472,752
1,427,962
2,222,134
1,044,790
42.3
Other states. . • •
. 2,169,772
2,332,471
2,345,329
123,195
5.3
Total .
35,551,489
43,983,599
46,299,530
34,555,914
11,743,616
25.4
^Increase in quantity of coke produced, 1914.
tincludes Utah.
^Included with other states having less than three producers.
§Included with Colorado.
In the following table is given a statement of
the establishments, the number of ovens built
and building, the quantity of coal used, the per¬
centage yield of coal in coke, the quantity and
the value of the coke produced, and the average
value per ton for the years 1880, 1890, 1900, and
from 1910 to 1914, inclusive :
Value of Coke Produced.
As has already been indicated, the prices for
coke during 1914 averaged lower than in 1913,
and every state with the exception of Colorado,
New Mexico, and Wisconsin, showed a larger
percentage of loss or a less percentage of gain
in the value than in the quantity of the coke
produced. The total value of the coke pro¬
duced in the United States decreased from $128,-
922,273 in 1913 to $88,334,217 in 1914, a loss of
$40,588,056, or 31.5 per cent. The percentage of
decrease in quantity was 25.4 per cent. Nearly
two-thirds of the total decrease m value occurred
in Pennsylvania, whose production for 1914 was
valued at $25,481,978 less than that of 1913.
Indiana was second in order of decreased value,
with a fallin.g off of $4,126,199 in 1914 as com¬
pared with 1913. The value of the output of
Illinois and West Virginia decreased more than
$2,000,000 each, and that of Alabama, Virginia,
and New York more than $1,000,000 each. The
value of the retort coke produced was $38,080,-
167, a loss of $10,557,685, or 21.7 per c'ent in
1914, as compared with 1913, and that of oven
or beehive coke was $50,254,050, a decline of
$30,030,371, or 37.4 per cent. In quantity, retort
coke showed a decrease of 11.8 per cent, and
oven coke of 30.5 per cent.
In the following tables are presented state¬
ments showing the value of the coke produced
in the several states for the last five years, with
the quantity and percentage of increase and de¬
crease in 1914 as compared with 1913, and the
total value of the coke produced in the United
States in each year since 1880.
STATISTICS
OF THE MANUFACTURE
OF COKE
IN THE UNITED STATES IN
1880, 1890, 1910-14.
Percentage
Value of
Yield
Coke
'iota! Value
Coke at
Establish-
Coal Used,
of Coal
Produced,
of Coke
Ovens,
Year —
ments.
Built.
Building.
Short Tons.
in Coke.
Short Tons.
at Ovens.
per Ton.
1880 .
. 186
12,372
1,159
5,237,741
63.0
3,338,300
$ 6,631,267
$1.99
1890 .
. 253
37,158
1,547
18,005,209
64.0
11,508,021
23,215,302
2.02
1900 .
58,484
5,804
32,113,553
63.9
20,533,348
47,443,331
2.31
1910 .
. 578
104,440
2,567
63,088,327
66.1
41,708,810
99,742,701
2.39
1911 .
. 570
103,879
2,254
53,278,248
66.7
35,551,489
84,130,849
2.37
1912 .
. 559
102,230
2,783
65,577,862
67.1
43,983,599
111,805,113
2.54
1913 .
. 551
102,650
1,321
69,239,190
66.9
46,299,530
128,922,273
2.78
1914 .
. 536
99,755
1,249
51,623,750
66.9
34,555,914
88,334,217
2.56
Bearing of the Kellogg Price-Fixing Decision.
Recently another court decision has been
handed down on the ever-fascinating question of
price-fixing. In order to see how it affected the
general situation, as explained from time to
time in these articles, I have obtained a copy of
the decree, and also a statement from the manu¬
facturer against whom the decision was ren¬
dered. The case was that brought by the United
States Government against the Kellogg Toasted
Corn Flakes Company in the United States Court
of the Southern District of Michigan.
Several months ago the Government began
suit against the Kellogg Company on the ground
that its method of selling its corn flakes was a
violation of the anti-trust acts and an interfer¬
ence with competition. The plan which the
Government objected to was this; The Kellogg
Company sells corn flakes in cartons. Its in¬
variable price to the retailer in any quantity is
$2.80 per case, and the fixed price to the con¬
sumer is ten cents a carton. The Kellogg Com¬
pany got a patent on its carton, having no con¬
nection with its corn flakes, and claimed that
this gave it all rights that any patentee had to
fix the price at which its product should be sold
by jobber and retailer.
At that time it controlled the jobber by mak¬
ing him agree to resell only at $2.80 and threat¬
ening him with penalties if he did not, and it
controlled the retailer by notifying him and prac¬
tically making him agree to resell only at ten
cents. In addition to this, every package bore
this notice :
“This package and its contents are sold con¬
ditionally by us with the distinct understanding,
which understanding is a condition of the sale,
that the package and contents shall not be re¬
tailed nor advertised, nor offered for sale at less
than ten cents per package. Retailing the pack¬
ages at less than ten cents per package is a
violation of the conditions of sale, and is an
infringement on our patent rights, and renders
the vender liable to prosecution as an infringer.
Kellogg Toasted Corn Flake Co., Battle Creek,
Mich.’’
Both jobber and retailer were notified that if
they broke the price they would be cut off. In
one case a buyer did break the price and was
sued by the Kellogg Company in a state court,
which upheld the legality of the plan by grant¬
ing an injunction.
There were some legal skirmishes over the
Government’s case, and the Kellogg Company
finally agreed that the court should make a decree
against it enjoining it as follows:
“(a) From requiring jobbers to enter into any
agreement or understanding to resell toasted
corn flakes purchased from defendants at a price
fixed by defendants, and from suggesting to said
jobbers, in writing or otherwise, that if they
fail or refuse to observe said fixed price they
will be cut off from a further supply of said
product.
“(b) From exacting in any manner from re¬
tailers of toasted corn flakes any agreement or
understanding that they shall sell the same at a
price fixed by defendants, and from suggesting
to said retailers, in writing or otherwise, that
if they fail or refuse to observe said fixed price
they will be cut off from a further supply of
said product.
“(c) From packing or selling said toasted corn
flakes in cartons or boxes having thereon the fol¬
lowing notice, to wit: (text of this notice ap¬
pears above.)’’
The Kellogg Company very kindly sent me the
following statement giving their interpretation —
and I suppose their counsel’s — of the decree :
“We fought the case vigorously and recently,
after consultation with the best legal advice that
we could secure and with others interested in
price maintenance, came to an agreement with
the United States attorneys upon an amicable
settlement and an agreed decree that enjoins
certain practices which the Government officials
view with disfavor and which we have not used
for some years.
“It, however, preserves to us our basic sales
right of selecting our customers, providing there
is no conspiracy, agreement or understanding
with others in reference to whom we shall select.
The decision enjoins us from requiring either
jobbers or retailers to enter into an agreement
or understanding to resell the Toasted Corn
Flakes purchased from us at a price fixed by
us, and from stating that if they fail to observe
said fixed price they will be cut off from further
supply. It further enjoins us from printing on
our boxes and cartons the notice which formerly
appeared there.
“For some years, as you know, we have had
no contracts with jobbers or retailers aside from
the patent notice on our cartons as to resale
price, and as we have had no such contract we
obviously have not endeavored to enforce such;
and in view of this widely known fact the con¬
sent decree only prohibits old and abandoned
methods.
“The patent notice we will discontinue, al¬
though when we adopted this notice it was upon
competent legal advice and in good faith, be¬
lieving it to be lawful. Since, however, the
court believes it not legally justified, we agreed
to abandon it.’’
Now let us see how all this fits into the
situation as to the price-fixing law, as it existed
before. It does not affect it at all. When the
suit was begun, the Kellogg Company sold only
to jobbers, which indeed is its present practice.
It was going to jobbers and making them sign
an agreement — it stopped this some time ago —
on penalty of being cut off, to resell at $2.80. It
could not go to all the retailers, since it did
not sell them, but it made it clear to retailers
in various ways, which included the notice re¬
produced above, that they must resell at ten
cents, or they would find their supplies cut off.
The latter result the Kellogg Company would
bring about by forcing the jobber who had sold
the cutter to cut him off.
The court says now that the Kellogg Company
and of course any other manufacturer, may not
require jobbers to sign or make agreements to
resell at a certain price, and may not threaten
those jobbers to cut them off if they do not so
resell. Nor may it notify retailers to sell at a
certain price or threaten to interfere with those
retailers’ supplies if they do not. But what does
all this amount to, in the way of taking from
the Kellogg Company any power that it had
before to stop cutting? Nothing, as I see it,
for the Kellogg Company’s right to choose its
own customers, to sell or not to sell, has not
been and cannot be interfered with. The job¬
bers all know what price the Kellogg Company
expects them to sell corn flakes for ; suppose
one of them sells at $2.65 or $2.70? No arrange¬
ment has been made between the jobber and
the Kellogg Company that the price should not
be cut — there is neither contract, suggestion nor
the hint of it. But the Kellogg Company merely
exercises its fundamental right of choosing its
customers and cuts the jobber off. And as the
jobber knows it will do that, and probably doesn’t
wish to be cut off, the same result is accom¬
plished without an agreement or a threat, and
he holds the price.
As to the retailer — the Kellogg Company doesn’t
sell retailers — the company has the same rights
that it had before to stop retail cutting and to
interfere with the supplies of a retail cutter. It
had no real right before and it has none now-—
except to learn the name of the jobber who is
selling the cutter and to cut that jobber off. It
can do that just as freely today under the above
decree as it could before, and nobody can ques¬
tion it in the slightest degree. In other words,
what a manufacturer may not do by agreement,
understanding, suggestion or threat, it can_ do
just as effectively through his fundamental right
of choosing his own customers.
That is why in my judgment the latest decree
not only has no special bearing on the price¬
fixing situation, but will probably have none on
the Kellogg Company’s methods of selling its
product, or the methods of any other manu¬
facturer.
(Copyright, October, 1915, by Elton J. Buckley.)
Eight cargoes of bituminous and none of
anthracite arrived at Fort William, Ont., last
week, three being in American stpmers and the
others in Canadian bottoms. Dispatch is_ fast.
Car shipments to western Canada are still in¬
creasing and while stocks are being held down,
it is said in advices from the Canadian head of
the lakes that there is no danger of shortage.
330
THE BLACK DIAMOND
[October 23
The Mine Clearing House.
“First Aid” Put Into Practice.
A great deal lias been written on the subject
of first aid to the injured, about the apparatus
used, the efficiency of the various teams and the
annual outing given by the large mining com¬
panies to further the interests in this nohle move¬
ment. However, very little has been said con¬
cerning the actual work done.
ill Foster's tunnel, a water level opening of the
Lehigh Coal & Navigation Company, nine men
were entombed for a period of six days and five
hours, behind a compact mass of coal, timber and
other debris, by a rush of water from an aban¬
doned working. One of the men had his dinner
pail with him. There was also a small amount
of “miner's sunshine,” a tallow compound which
is burned in miners’ lamps. This comprised the
supiily of nourishment on which the men existed
during the time they were entombed.
Immediately after word had been given out
that an accident had occurred rescue parties and
first aid corps were formed to open up the closed
gangway and to be in readiness to give such aid
as was necessary in the rescue work. After
six days and five hours of nerve wrecking en¬
deavors, the men were located up a chute, all
alive but somewhat weakened from the lack of
nourishment and the terrible strain. Upon be¬
ing taken from the chute a cup of \varm coffee
and when necessary a hypodermic injection was
given to each man by the company physician,
who in turn wrote on a slip of paper what treat¬
ment had been given each man. This paper was
given to the captain of the stretcher squad and
was finally delivered to the physician in charge
of the Panther Valley hospital where the men
were taken to recuperate.
The work of the rescue scpiad was so efficient
that not a single life was lost and the men are
now able to take solid food, in fact some of
them have been permitted to leave the hospital.
The above example shows that the efforts of
the men who give training in this line are by
no means wasted.
IS.4AC M. D.VVIES,
Mine Inspector.
Miners’ Advisory Safety Committee.
The following is an account of safety measures
that have been put into effective use in Vermilion
county, Illinois:
The Bunsen Coal Company has installed a safe¬
ty committee at each mine consisting of three
miners who go through the mine and make a
complete inspection and then make to the com¬
pany recommendations as to safety or any^ other
improvements that may come to the notice of
the committee. Any recommendations made by
this safety committee are taken up by the com-
l)any for consideration.
One recommendation made by this committee
that strikes the writer as being very efficient was
that all empty powder kegs should be kept from
the sides of the entry, so that drivers and trip
riders in stepping off the cars would not be likely
to be injured by tripping over cans and falling
under the cars.
VERMILLION.
The above suggestion is well worthy of serious
consideration by all companies as a large num-
l)er of accidents occur through failure to keep
the sides of the passageways clear of obstruc¬
tions and many men are injured in jumping off
the cars through coming in contact with such
ol)structions.
Improvement in Indiana Mines.
In the past few years there has been a very
marked improvement in the newer coal mines
of Indiana, in the way of equipment and safety
devices. Compressed air punching machines and
the electric breast machine are fast being dis¬
placed I)y the electric continuous cutters. Surface
plants of many new mines are constructed of
iire-proof material such as brick, iron and con¬
crete, which greatly protects life and property
and gives excellent service. Hoisting shafts are
made large in order to accommodate large cars,
and in some instances are cased with concrete to
render them fireproof. The electric motor haul¬
age, from the point of economy and production,
far surpasses other haulage systems, its_ greatest
handicap lieing the dangerous trolley wire: it is
to be hoped that the storage motor will be so
perfected in the near future that the trolley can
he eliminated; however, many coal companies are
now protecting with guard boards all non-insu-
lated electric wires where employes have to
pass under them in going to and from their
work, thereby reducing accidents. Some new
companies are constructing stoppings on the
main haulage, of brick or concrete, thereby sav¬
ing a great quantity of air and providing protec¬
tion against fire. Wooden road is fast giving
way to steel, which in the long run is cheaper,
and also reduces wrecks and prevents many acci¬
dents. The horse, mule and pony are being
brushed aside by the gathering motor. An auto¬
matic steel door is being used in the Ayrshire
coal mines of Pike county, that does away with
the trapper and gives excellent service. The
telephone from top to bottom and inside the
mine is very convenient and worth much more
than it costs. The bottom and all partings should
be spacious and seven or more feet high and
well lighted and timbered. After a mine is
cejuipped inside and out with all the modern im¬
provements it is yet uj) to the superintendent and
mine boss to perfect a thorough organization of
their day and monthly employes, being careful
to employ only efficient and reliable persons.
JOHN C. WRIGHT,
Mine Inspector, Hoonville, Ind.
Making a Flying Switch.
The following device to prevent accidents to
trip riders when making a dying switch has
given increased efficiency and safety at the Madi¬
son Coal Corporation No. 2 Mine.
There is no question that the position of the
trip rider when he has to go ahead of the motor
to turn the switch point for the motor to take
the loaded track and the empties down the empty
track while making a dying switch is one of
peril, from the fact that in getting off the motor
while it is in motion, he is liable to fall while
running ahead of the motor and also he may
be struck by the empties going at a dying speed
when they have been detached from the motor.
The Madison Coal Corporation at the No. 2
Mine has solved this difficulty in a simple and
a practical way which practically eliminates the
danger and gives increased efficiency ; as the
trip rider does not have to get off the motor to
make a dying switch.
On the outside of the outer rail of the loaded
track there is an upright piece with a small wheel
on top and this contrivance is connected to the
two points of the switch. The height of the
wheel above the rail is such that the frame of
the motor depresses the wheel when the motor
passes over it and this motion is communicated
to the switch points by rods that close them so
that the motor goes over to the loaded track, and
as soon as the motor has passed over the points
the weight is released and the points come back
to their former position allowing the empties to
take the empty track, the points being always
open to the empty track. This is so simple and
gives such satisfaction that the Madison Coal
Corporation, which is noted for the safety pre¬
cautions in its mines, deserves full credit for
the device.
W. L. MORG.^N.
Practice Is Better Than Precept.
In the safety-first campaign precepts in the
form of danger signals of various kinds, sup¬
plemented liy personal instructions serve a very
good purpose and are necessary. However, any
and all such means will not be effective nor serve
their purpose if the boss himself is not scrupu¬
lously observant of all the safety regulations laid
down by the company and does not make it a
point to observe not alone the letter of the in¬
structions, but goes beyond the letter and in
the true spirit of the safety-first movement is
])erhaps over-cautious in looking out for danger.
This may seem like a very trite statement and
one that is entirely superfluous to make, for nat¬
urally the one who issues safety instructions
might be expected to be the one most careful
in carrying them out. However, the old maxim
that "practice is better than precept” is violated
far too frequently by mine officials who often do
not observe their own rules and say at least,
l)y their actions, “do as I say, not as I do.”
Several years ago the United States Bureau
of Mines invited a number of foreign mining
officials to visit the coal mining regions of .\mer-
ica to advise in regard to safety methods. This
visit was made shortly after the series of great
disasters beginning with the one at Monongah,
West Virginia, and when the eyes of the entire
United States were focused upon the coal mining
industry.
In a certain section of the country, during
the visit of inspection, a party consisting of the
foreign experts, several state mine inspectors,
the president of one of the largest coal companies
in the United States, the general mining superin¬
tendent of the same company, a numlier of under
officials of the same company, and officials of
the United States Bureau of Alines was visiting
a certain mine. A very animated discussion about
certain mining practices was started and the
party sat down at the face of a room to carry
on the argument. The fire boss, whose specific
duty it was to inspect all places into which the
party went and to look after the safety of the
party called attention to a large piece of over-
banging slate under which the party was sitting
and one end of which had already separated sev¬
eral inches from the roof. He was told by the
high officials in the party that they would be
there only a moment, hut the argument waxed
hot and was protracted and when the fire boss
gave a second warning he was told in polite
language to “go way back and sit down,” which
being a sensible man he did.
This is no doubt an extreme case, but it typifies
a too common practice and the mine boss or
mine official too often takes chances that he
warns his men to avoid, and thus sets them the
bad example of breaking rules.
In many cases men are but children of a larger
growth and they will follow an e.xample much
more readily than they will a rule or regulation
in printed form.
Pittsburgh, Pa. precei-t.
First Aid Box for Pitching Mine.
F.ditor Bl.-xck Dlxmond :
A first-aid box designed for use in mines
where it is necessary to take material up or down
ladders or through very narrow passage ways in
order to reach an injured person, has been de¬
signed by Air. S. E. I)avis, captain of the Berk¬
eley, Alont., first-aid team. Although it may not
be particularly applicable in coal mines, particu¬
larly where the seam is flat, there are instances
in many of the mines of the Rocky Mountains
and in the pitching seams of the anthracite
region of eastern Pennsylvania and the bitu¬
minous mines of central Pennsylvania and pos¬
sibly also in Oklahoma where the apparatus
might be useful.
The box in which the apparatus is stored is
made of one-half inch lumber and the interior
dimensions are four inches square by forty-two
inches long. It is hinged lengthwise in the cen¬
ter of one side, so that when open there are two
parts, each two inches deep. In one section are
stored the splints, which are of two sizes. First,
three splints one-half inch by four inches by
three feet six inches, and second, two splints
one-half inch by four inches by one foot four
inches. The other half of the box contains a
stick for making a tourniquet, five yards of four-
inch roll banda.ge ; picric acid gauze, one pack¬
age ; plain gauze, one pack.age ; triangular first-
aid bandages, si.xteen ; also an apparatus made of
bent wire to be used in pressing bandages under
an injured part. The entire equipment weighs
about ten pounds and by means of lacing leather
one inch wide, four feet six inches long passing
through loops on the top of the box, it is possible
to carry it in the hand or slung over the shoulder
as desired.
In connection with the same apparatus a novel
long splint made up of two short splints has been
devised. To accomplish this a number of holes
are drilled at equal distances center to center
through the two short splints and they are then
fastened together by means of bandage lacing
or anj' like material, similarly to an extension
fire or painter’s ladder. In this way a splint of
different lengths is rendered available.
MONTANA.
The New York Sun, in its issue of Tuesday,
said: “There is evidence that steel companies
are having some difficulty in securing an am¬
ple supply of coal for steam and smelting pur¬
poses and have been buying various lots of
low-grade fuel which would not be used under
ordinary circumstances. Coal merchants re¬
port the sales of 100 cars of coal high in
volatile and ash to eastern steel companies in
the last two days. Such coal a few months
ago sold at ninety cents to ninety-five cents
a ton, but today is commanding .$1.20 a ton
for early shipment.”
No. 17]
331
THE BLACK DIAMOM).
Rate Hearing Is Resumed in Ohio.
Columbus, Ohio, October 'Zl. — (Special Corre¬
spondence.) — Action against the Hocking Valley
Railway Company, with the Sunday Creek Coal
Company as chief plaintiff, in the attack against
intrastate coal rates, was resumed before the
Public Utilities Commission on Tuesday. After
a preliminary bout in August, adjournment had
been taken to give time for preparation. The
small hearing room of the commission was unable
to accommodate all of the coal and railroad men
who had been attracted to the reopening of the
proceedings.
Before the plaintiff introduced its first im¬
portant testimony, consisting of the report of the
committee of rate experts appointed by the com¬
mission to go over the office records of the rail¬
road company, the chief counsel of the latter,
announced that he would probably ask for an¬
other postponement when this document had been
submitted. His grounds were that since the
plaintiff had submitted to the defendant a sum¬
mary of its findings there had not been time
enough for him to check up on the statements
contained therein. He would not consider this
competent evidence until the check had been com¬
pleted. The commission ruled that this would be
a matter to pass upon after the report was
heard.
H. B. Arnold, of counsel for the Sunday Creek
Company, first examined a clerk from the traffic
department of the same, who stated that the
company had twenty-four mines in Ohio, of
which ten were on the Hocking Valley, nine on
the Toledo & Ohio Central, two on the Baltimore
& Ohio, and three on the Zanesville & Western.
The total capacity of these mines was placed
at 22,800 tons a day. Through H. J. Reese,
secretary and treasurer of the company for sorne
years past, effort was made to .show that this
corporation was owned by the Hocking Valley
previous to its recent reorganization, hut the com¬
mission sustained the defendant’s objection. C.
E. Morton, a Columbus attorney, testified that he
had served as counsel for the New Pittsburgh
Coal Company in a rate action before the Inter¬
state Commerce Commission in 1912, and that
under his examination General Superintendent
Connors, of the Hocking Valley Railway Com¬
pany, had stated that the cost of hauling coal
from Nelsonville to Toledo was two mills per
ton per mile.
The report of the examiners was then submit¬
ted in manuscript form as an exhibit. C. W.
Hillman, chief expert, took the stand. His direct
examination consumed the remainder of the day.
As establishing Mr. Hillman’s competency for
the work on which he had been engaged. Attor¬
ney George P. Boyle, of Chicago, of counsel for
the Sunday Creek Company, drew from him the
statement that he was president of the Mutual
Audit Company, having headquarters at Louis¬
ville, Ky., and a long list of cases in which he
had served before the Interstate Commerce Com¬
mission and state commissions was recited. In¬
cidentally Mr. Hillman gave his railroad expe¬
rience, beginning with the engineering department
of the Cumberland Valley, in 1875, and including
important positions with railroads, notably the
Northern Pacific and the Rock Island, covering
a period of many years.
The testimony of Mr. Hillman consisted mainly
of a technical explanation of his methods in
handling rate cases and to a dissection of the
exhibit to which reference has been made. Coun¬
sel sought to show that work in the present case
had been along the lines that had been approved
by various tribunals in important cases elsewhere.
The exhibit covered thirteen large pages of close¬
ly typewritten manuscript, with hundreds of sepa¬
rate calculations. It showed in minute detail
every step leading up to the summary which is
herewith given.
I'ollowing the close of the direct testimony
of I^Ir. Hillman, which was concluded shortly
before noon Wednesday, John 1'. Willson, chief
counsel for the railroad, started in on a gruelling
cross-examination of the witness. He first gained
4f).fi7fir).")n
Add lock and wharves (for lake coal only) . 1.88929.5
from Mr. Hillman the admission that he had
been retained in the case by the Sunday Creek
Company, at the time the latter intervened in
the hearing in August, and that while serving as
a member of the board of examiners appointed
liy the commission he w'as, with the knowledge
and consent of that body, drawing pay from
the source named.
Asked as to the amount of his compensation,
the witness declined to answer. The commission
held the question to be competent. Mr. Hillman
then stated that he received $50 a day and all
expenses. To date he had drawn $1,200. This
was approximately one-third of the total amount
for expert work to be paid the Mutual Audit
Company. This sum would cover the salaries of
the three assistants engaged with him in the ex¬
amination, which were in addition to Mr. Hill¬
man’s personal fee of $50 per day net. He
admitted that this pay was going on while he was
on the witness stand.
The railroad company attaches great importance
to the foregoing as grounds for error should
the case be appealed to the courts. It will be
recalled that at the beginning of the hearing, in
August, the company denied access to its office
records, but order for examination was made
liy the commission. The matter then hinged on
how and by whom the data should be taken.
The plaintiffs and defendants failing to agree
on these points, the commission took the prob¬
lem in hand, and stated that it would appoint a
force of examiners that would be fair to both
sides. Subsequently it named one of its own
department heads as chairman, and Mr. Hillman
and three of his force comprised the remainder
of the force. The railroad entered strenuous
objections to Mr. Hillman and his associates, but
was overruled. The commission had announced
at the early stage of the hearing that it had
no funds with which to employ experts. On the
score of economy it made use of those under
pay of the plaintiff, and took the ground that in
passing upon whatever report might be submitted,
it would not allow, by reason of this makeshift,
any prejudice to the interests of the defendants.
With Mr. Hillman still on the stand through¬
out the remainder of the day, the report was
gone over item by item, as in the case of the
direct examination. The drift of Mr. Wilson’s
cross-examination was to make it appear that all
the calculations adduced were with a natural
bias against railroads, the many rate cases in
which Mr. Hillman had been retained as expert
having used him in this manner. His system of
cost separation and compiling, to show the total
expense that entered into a haul, was attacked
vigorously, as reflecting his own theories, rather
than being based on sound mathematical science.
PanamaCanal Announcement
^laj. F. C. Boggs, Corps of Engineers, chief
of the Washington office of the Panama Canal,
makes the following announcement :
“A cablegram dated October 12 has been re¬
ceived from the governor of the Panama Canal,
advising that continued movements of sliding
material make it impossible to predict any ap¬
proximate date of reopening the canal. The
governor states he does not advise sailing via the
Panama route until further notice, which will be
given as soon as material is removed sufficiently
to insure stable conditions.”
A second cablegram, dated October 12, has
been received from the governor of the Panama
Canal, as follows :
“Referring to your cable of the 11th instant,
mass of material involved in the break of October
14, 1914, which has been sliding gradually into
l)rism, moved precipitately. This, combined with
a similar movement from the lireak which oc¬
curred just opposite, on the west bank, in .\ugust,
causes present conditions. Length of channel in-
39. 712B57 31.498725 2f>.18(i343 2n.90(i3f>7
volved, 1, .'!()() feet, of which 200 feet has present
width of only twenty-five feet and depth of three
to fifteen feet. For week ending October 9,
209,000 cubic yards of material were dredged, but,
as the movement continued, the result has been
to maintain only wliat slides left in first instance.
Canal is therefore physically closed temporarily.
On the east side bank is upward of 300 feet above
canal level and on the west side varies from 300
to 400 feet above. Material in settling and mov¬
ing creates earth waves, with deep depressions
liehind, these being some five to six hundred feet
from the canal prism, with elevations of sixty to
eight}- feet above water surface. These waves
undoubtedly counterbalance weight of broken
mass on either side, and when removed may cause
another similar movement; hence impossibility of
making any prediction as to date of reopening
until after waves w-hich now block the channel
have been removed and action of remaining ma¬
terial determined. Heavy rains materially affect
movement. Whether light-draft ships can pass
in advance of thirty-feet-draft ships must depend
on conditions when reasonably secure channel is
attained.”
Welsh Miners’ V\/agcs.
1 \ ice-Consul \\ illiam L. Jenkins, Swansea, Sept. 15.]
The independent chairman of the South Wales
coal conciliation board, on September 14, 1915,
gave his decision on the application of the South
W ales Miners’ Federation for an increase in the
wage rate. The miners applied for a twelve and
five-tenths per cent advance, and the mine owners
made a counter offer of five per cent. As the
parties were unable to agree, the independent
chairman was called in for a deciding vote. He
granted the workmen their full demands.
In money terms the minimum wage of the coal
miner prior to the new award was $11.88 a week.
W’ith the present twelve and five-tenths per cent
addition, this minimum will be raised to $13. 3(5
a week. A local newspaper makes the following
comnient; "Miners in the coal field are at pres-
pit in a prosperous state, especially when it is
borne in mind that not more than two per cent
of the coal hewers are down to the minimum
limit. The money earned by the lowest paid
laborer in the coal field, as apart from the various
other more highly paid classes, will now be $8.89
per week.”
Twin Cities Coke Plant.
.•\rticles of incorporation of the W estern States
Coke Company, with a capitalization of $2,000,00<),
have been filed with the secretary of state of
Minnesota.
The company will erect a by-product plant at
the Twin Cities the exact size for which has not
yet been determined. Options on several large
properties are held by the company and a final
selection is to be made within a day or two. It
is expected that the plant employing several hun¬
dred men, will be in operation within a year.
The illuminating gas as generated will be dis¬
posed of to the St. Paul Gas Company. A certain
percentage of the gas will be used in the manu¬
facture of coke.
The use of by-product coke for fuel both in
manufacturing plants and in homes is new in
the northwest, although it has been successfully
employed in the east and middle west. It is
claimed forty per cent of the fuel used today in
^Milwaukee is by-product coke.
W hat is known to the coke world as the Schles-
inger interests, owners of the Milwaukee coke
plant, are the princii)al stockholders of the Minne¬
apolis corporation. Associated with the Schles-
ingers is Win. A. Read & Company, New York
City, one of the largest eastern financial institu¬
tions.
The coal to he used in the new coke ovens will
lie carried iirincipall}- from West Virginia, by rail
to the great lakes, thence over the water route
to Duluth and hy rail again to Minneapolis.
About 1,000 tons of coal will be coked daily into
700 tons of coke. For the latter it is claimed
that it jiossesses greater heating units than coal,
is practically smokeless and dustless and sells for
much less than coal.
The officers of the company are : Henry J.
Schlesinger, president ; A. Schlesingcr, vice-
president ami treasurer; and Edwin G. W’ilmer,
secretary. The directors, in addition to the offi¬
cers are LI. H. Springford, William Bannen and
George H. Prince. With the exception of Mr.
Prince, all are from Milwaukee.
IIOCKIXG VAU.KV KAIl.WAY COMPANY— COSTS IN CENTS PER TON EROM NEESONVILI.
TO SUNDRY POINTS I I.LX'STR.XTINC, APPEICATION OF COSTS UNITS.
Toledo, Fostoria, Marion, Delaware,
„ 180 miles. 150 miles. 107 miles. ,85 miles.
Dross weight— line . 19.412830 10.177395 11.539879 9.107190
Cross weight — yards, maintenance . 1.784785 1.427828 1.070871 1.070871
« heels . 2.680.307 2.080367 2.080307 2.080307
Car miles . 13.307444 11.139530 7.940203 0.312404
Loaded cars . 042386 .042380 .042380 .042386
Assembling . 2.475305 2.475305 2.475305 2.175305
1 ards— operations . 0.313473 5.10S78 5.143054 3.837710
E DISTRICT
Columbus
(Jlound St.)
01 miles.
0.578807
.713914
2.080307
4.530078
.042380
2.475305
3.285450
332
THE BEACK DIAMOND
[October 23
New York Golf Tournament.-
The New York Trade Golf Association held
its third annual fall tournament on the links
of the Seaview Golf Club, near Atlantic City,
N. J., on Saturday and Sunday, October 16
and 17.
This is a very interesting new course, opened
some two years ago, bordering on Absecon
bay, a tributary of the Atlantic. The club¬
house, which was the stopping place of the
golfers and their guests, is one of the finest
to be found in the east.
The attendance was small. Doubtless the
distance from New York had something to
do with this. The association now has a
membership of around fifty, and just a fourth
of these were in attendance. The guests num¬
bered about six.
Wallace Eyre of Knickerbocker Fuel Com¬
pany, won the low net prize for medal play
in the qualifying round on Saturday morning.
Marshall Nairn had the lowest gross score,
eighty. This prize was a handsome gold med¬
al fob.
E. Kelly Rothstein of B. Nicoll & Co., was
the winner of the prize in the first eight. This
was a silver vase. Winner of the runner-up
prize was Walter Peterson of Susquehanna
Coal Company. This was a sterling silver
cigarette case.
The winner of the second eight was A. E.
Metlach of the Pennsylvania Coal & Coke
Corporation. This was a silver mounted flask.
J. E. Parsons of Consolidation Coal Company
won a silver mounted thermos bottle as run¬
ner-up.
In the third eight Col. R. B. Baker of Ster¬
ling Coal Company, won first prize, a silver
cigarette case. J. W. Searles of Pennsylvania
Coal & Coke Corporation, runner-up, got a
silver mounted carafe.
In the eighteen-hole handicap, Marshall
Naun of Sterling Coal Company won first
prize, a silver mounted cigar jar; W. H. Tem¬
ple of the same company, winning second
prize, a silver tray.
The visitors’ prize, a handsome cup, was
won by J. S. W. Holton of the Sterling Coal
Company, Philadelphia.
Norfolk C8i, Western Tonnage.
The Norfolk & Western Railway hauled 2,910,-
2'21 tons of coal in September, compared with
.3,005,618 tons in August, and 2,509,916 tons in
September, 1914. The September, 1914, tonnage
was the record until June of this year.
Comparison of the last four months of this
year with the corresponding months of last year,
show as follows :
Month — 1914. 1915.
une . 2, .315, 956 2,680,465
uly . 2,503,062 2,854,445
August . 2,450,808 3,005,618
September . 2,509,916 2,910,227
Total . 9,779,742 11,450,749
An increase of 1,871,007 tons in thus shown
in four months’ time. And this is in spite of the
fact, too, that June, July, August and September
of 1914 were the largest months’ shipments of
the year. However, for the whole year, by com¬
parisons, the Norfolk & Western’s tonnage for
1915 will be about two months ahead of last
year. In other words, the road’s shipment in
1914, its banner year, was 25,471,969 tons, whereas
by the end of October the shipment for this year
will be nearly or quite as large as for the whole
of last year.
The Norfolk & Western comptroller’s report
shows the shipments from the various fields it
serves as follows:
I’ocohontas field . 1,620,302
Tug River district . 354,918
Thacker district . 230,198
Kenova district . 89,921
(-linch Valley district . 144,234
Other N. & \V. territory . 3,798
Total N. & W. fields . 2,443,404
Williamson and Pond Creek R. R. Co . 87,152
Tug. River & Ky. R. R. Co . 54,662
All other railroads . 324,913
Grand total . 2,910,221
Charleston Piers Opening.
On the 15th instant, the first cargo of coal
loaded into a steamship over the new South¬
ern Railway coal piers at Charleston, S. C.,
was placed in the holds of the steamship In¬
ternational, which is owned by the Clinch-
field Coal Corporation.
This steamer was brought around from the
Great Lakes some months ago, and it has
been used heretofore in service between Hamp¬
ton Roads and Galveston. The cargo taken
on the 15th amounted to 2,500 tons, and 175
tons of bunkers. Fifty-four fifty-ton Clinch-
field gondolas were required to make up the
cargo and bunkers. This cargo was shipped
to Tampa, Fla.
Enoch Carver Dies.
Enoch Carver, a well known coal man of the
older times in Cincinnati, Chicago and West
Virginia, and lately district inspector in the
West Virginia state mining department, and also
a colonel on the staff of Governor Hatfield of
West Virginia, died last Saturday from injuries
sustained in an accident last week while about
his duty.
Col. Carver was inspecting the Longacre mines
of the Sunday Creek Coal Company when he
was crushed by a runaway motor car in an entry
of the mines. He had just recuperated from a
long sickness and his constitution being thus
weakened could not resist the shock. His death
came at the Kanawha Valley hospital at Charles¬
ton, and the funeral and burial was largely at¬
tended in Charleston Monday.
Col. Carver was an Englishman born, was sixty
years of age, and had been connected with coal
mining most of his life. He came to America
at eight years of age and moved to West Vir¬
ginia at twenty-two years of age. He was en¬
gaged in the coal business in Chicago from 1888
to 1892 and in the latter year he moved to
Charleston, W. Va., becoming engaged in mine
operation there. He was well known and highly
esteemed by coal men wherever known. The
funeral was largely attended by state officials
and coal men from all over the country.
Col. Carver had three sons in the coal busi¬
ness — Enoch, Jr., of the New River Coal Com¬
pany, Chicago ; W. W., of Percy Heilner & Son,
Cincinnati, and David, of the Milwaukee Coke
& Gas Company, Milwaukee.
“I well remember Mr. Carver,” said Mr. Charles
L. Dering of the S. C. Schenck Company. “When
I was a youngster on the street hunting coal
orders he and his brother had an office and yard
here under the name of Carver Bros., from which
they sold West Virginia and other coals. I
always looked forward with pleasure to a call
at Mr. Carver’s office. He was one of those
cheery, genial gentlemen whom it was not alone
a plea.sure to meet and to know, but his words
of wisdom and encouragement to a struggling
■young salesman were at once a help and an in¬
spiration. Mr. Carver was of that sterling, rugged
type of the older coal days, who set a mark
of high integrity in business, and he was an
honor to it to the end of his days. A man not
only greatly respected but well beloved among
his fellows. He was a splendid inspiration to
those manly sons of his who are growing up and
making a place for themselves in the coal busi¬
ness. His life will be a beautiful memory to
them.”
National Coal Association.
The National Coal Association takes the place
of and is the continuation of the Order Kokoal.
But it is far more than a change in name.
It combines all the social and fraternal features
which made Kokoal so popular and yet is carry¬
ing on a definite work that will secure practical
benefits to each member as well as do much for
the coal trade as a whole.
For thirty days longer, anyone who has been
a member of the Kokoals will be accepted as a
charter member of the National Coal Associa¬
tion upon payment of the first year’s annual dues
of $5. After that date the charter list will
be closed and a membership fee required in addi¬
tion to the annual dues.
Next month a membership handbook will be
published in convenient vest pocket form con¬
taining the names and firms of all those who are
members of the National Coal Association. This
handbook will be a ready reference list of promi¬
nent coal men and will undoubtedly be frequently
referred to. You ought to have your name and
company represented.
Several important articles have already been
sent to members covering “The Jobbers’ Cost of
Selling Coal,” “The Anthracite Miners’ Demands
for Next April,” “The Cause of Smaller Profits,”
“Why It Pays Retailers to Know Their Costs”
and “The Costly Effect of Price Cutting.”
You will find it worth $5.70 just to receive
the information that the National Coal Associa¬
tion is sending to its members at frequent inter¬
vals while the many other advantages will make
you feel that a membership in the N. C. A. is
your best business investment of the year.
ARTHUR M. HULL,
Secretary-T reasurer.
Coal on Upper Mississippi.
(Concluded from page 327.)
rail would have cost $4,932.98; thus the water
rate caused a saving of $2,170.41, or forty-five per
cent of the rail rate, which was an average of
5.98 rnills per ton-mile, as against 2.21 mills per
ton-mile by water or four mills per ton-mile over
the same mileage (the rail distance being shorter
than the watef distance).
“The total expenses of the barge were high,
and some items were out of all proportion on
account of the lack of organization and other
consequences of this “isolated” trip (guests, extra
crew, etc.). For instance, the extra pilots, needed
because the crew was totally unfamiliar with the
route, received for this single trip in wages
$1,014.13, or $18.67 per day, an item entirely
in addition to the usual pay-roll.
“Heavy expenses, incurred through slow load¬
ing, etc., to a large extent caused by the fact
that this was an isolated trip, all make the ex¬
penses extraordinarily high. Under usual con¬
ditions, with a regular service and more boats
than one to carry all the overhead and administra¬
tion charges, the total expenses would have been
less than $3,500, but the total expenses for this
3,842-mile journey were $5,740.42.
“The overhead charges, including six per cent
interest on investment, six per cent deprecia¬
tion, one-half per cent for repairs not covered
by insurance, harbor dues, taxes, traveling ex¬
penses, and traffic manager (who, on account of
this trip, was six weeks on the road), his wages,
advertisements, photographs, traveling expenses
of general manager, office and administration ex¬
penses, telegrams, telephone, soliciting expenses,
salary of clerks, etc., gives a total of $2,011.66.
“The following are the details of the cost of
the trip ;
Fuel . $ 261.37
Deck supplies . 270.72
Subsistence . 400.00
Engine room supplies . 140.00
Wages of crew, including supercargo at $150 per
month . 1,230.00
Extra pilots . 1,014.13
Hull, liability, workmen’s compensation, cargo
and freight insurance . 412.34
Overhead charges . 2,011.66
$5,740.22
or a total of 1.65 mills per ton-mile of carrying
capacity.
“Had the barge been fully loaded both ways,
the gross receipts would have been $8,491.00,
at the rate of 2.21 mills per ton-mile (the average
of her freight charges), yielding a profit of
$2,750.78, even under these adverse conditions,
on this single trip, and this, notwithstanding the
fact, that, in mills per ton-mile, the freight rate
of the barge was thirty-seven per cent of the
rail rate, so that on the lumber alone the barge
saved the shipper $1,300.52, making a rate of
$998.65, as compared with a rail rate of $2,300.17,
or $2,750.78 profit on a single trip, or eight and
one-half per cent on the investment.”
Baltimore Coal Tonnage.
A recent compilation of figures on shipments of
coal over the three railroads entering Baltimore
shows the increase in tonnage as follows :
.STATEMENT OF BITUMINOUS AND ANTHRACITE
COAL TONNAGE (IN TONS OF 2,240 POUNDS)
TO BALTIMORE, MD.
BITUMINOUS COAL, TONS.
Year ending June 30 — 1914. 1915.
Track delivery . *.***. . .***.'■ 833,481 853,456
Transshipped to destinations inside
capes of the Chesapeake . . 941,328 835,724
Transshipped to destinations outside
capes of the Chesapeake . 3,381,500 4,062,484
ANTHRACITE COAL, TONS.
Brought to Baltimore, includes track
delivery and transshipment . 798,501 828,909
New coal deposits have lately been discovered
at Benezette, Elk county. Pa., not far from the
mine of the Penfield Coal Company, at Weed-
ville, and the Shawmut Mining Company’s opera¬
tions at Byrnedale and Force. It is reported that
capitalists who have secured a good many acres
in the neighborhood will organize a coal com¬
pany and start producing coal within the next
few months. The mines in the vicinity are all
busy and a shortage of men exists.
THE BLACK DIAMOND
333
No. 17]
Consolidation of Facilities Only.
The discussion of the general question of the
advantages of consolidating businesses in com¬
munities where there are too many yards, which
appeared last week in The Black Diamond, was
commented on by a dealer in a river town with
respect to the possibility of working out at least
one feature of consolidation, that is, the joint
use of handling facilities.
“For instance,” he said, “I know of five or
six concerns that are operating floats for handling
river coal. Each of them has its own float tender
and other employes, and all of them use the old-
fashioned plan of loading their wagon direct
from the barges, and also getting their coal into
their yards the same way. The plan is at once
crude, time-consuming and expensive.
“It might be exceedingly difficult to convince
any one of these dealers, if it came down to a
question of consolidating, that he should retire,
for the good of the business, and let somebody
else take care of the trade that he has painfully
and laboriously built up over a period of years ;
but it would be much easier to get his o. k. on
a plan to join with other dealers similarly situ¬
ated in the establishment of a modern coal¬
handling plant to be used by all of them on a
pro rata basis.
“In the case I have mentioned, the half dozen
concerns are all handling the same kind of coal,
and they could easily keep an elevator busy,
provided it had the tonnage of all of them. But
conditions now are such that the single ele¬
vator which has been in use for handling river
coal from time to time is no longer in operation,
the reason being that not enough business was
offered. And with this labor-saving equipment
standing idle, the other concerns I speak of are
worrying along without any mechanical loading
facilities whatever. A condition of this kind
certainly suggests that the coal dealers here need
the services of a live efficiency en.gineer !
“If they could get together on the use of
this elevator, whereby each paid so much per
ton for handling the coal and all shared in the
dividends on the business of running the ele¬
vator, if there were any, it would be a kind of
consolidation which is feasible, practical, profit¬
able and not'af’all hard on the individual member
of the trade.”
A Movement for Better Help.
All sorts of “better” movements have been
started in this country during the past few
years : There have been plans for better babies,
better cities, better apples and better everything
else worth while. All the movements are good
and worthy of support.
What coal dealers need, as much as anything
else, is better help, meaning the rough labor used
in handling and delivering the coal. This is a
general statement, and so is subject to excep¬
tions. There may be retailers who have splendid
drivers, who are well able to represent them
properly; but taking it by and large, the trade
is using, and possibly is forced to use, cheap
and unintelligent labor, which does not do much
good as far as strengthening the position of the
dealer with his customer is concerned.
In the case of a yard where the coal must
be moved by hand at every stage, and where
every wagon must be loaded a forkful at a
time, the job assigned to the wagon-driver is a
tough proposition. It is hard work to shovel
coal, and naturally the dealer gets as employes
for this class of work only those who are not
fit for anything better. In a great many cities
the lowest class of negro labor is used, and
most of the negroes are about on a par with
the mules they drive.
A leading dealer who recently established me¬
chanical facilities for handling the coal, and who
substituted pulling a rope and opening a chute
for shoveling coal into the wagon by hand, has
found, to his interested surprise, that this simple
change has made his yard a most popular one
with coal-wagon drivers. Everybody is anxious
to work for him, because the job has been robbed
of its worst feature. The extremely laborious
task of loading by hand has been eliminated,
and loading now is simply and easily performed.
Therefore the dealer has his pick of the negroes
who work around the coal-yards in his town.
As a man can handle many more loads of coal
under this arrangement than formerly, the drivers,
are able to earn more, even at the reduced scale
which the dealer using mechanical devices natu¬
rally established. Since the pay is thus made
more attractive, while the actual labor required
is less, it follows that the dealer, as an employer
of labor, has been advanced several degrees,
and that he can enter the market for a better
class of help than he has been entitled to here¬
tofore.
Capital seeks the most attractive and remuner¬
ative market, and labor is the same way. Those
who have labor to sell want to sell it for the
most money and the best possible working condi¬
tions. The dealer with up-to-date equipment is
not only saving money and getting the various
other advantages which are usually commented
on, but he is putting himself in a position to
command service of a highly improved character,
compared with that which he has been getting.
From the standpoint of creating good-will and
holding trade, this is well worth emphasizing.
More Intelligent Drivers Needed.
It is a fact that more intelligent men are
needed in handling coal deliveries. The driver
of a wagon can really be a salesman of the com¬
pany’s product, if he is up to his job. In many
lines of business the drivers are regarded as
salesmen, and are so denominated. Wholesale
bakers, launderers and others are among those
who have found that their drivers can be trained
along lines which will take advantage of their
natural ability, and make them worth more than
they are worth when they confine their efforts
to the purely mechanical task of getting the
goods from the customer to the plant and back
again.
The coal business is getting to a stage where
greater responsibilities are likely to be imposed
on the driver. Take, for instance, the develop¬
ment of the cash system, which is taking hold
in all parts of the country, where the coal is
sold c. o. d. ; as happens in a great many cases,
it is up to the driver to make the collection, to
explain the nature of the charge to the customer,
and to get the money safely back to the office.
No particular feature of this transaction is tre¬
mendously difficult, and yet handling it does
require some intelligence. The more intelligent
the driver is, the better impression he will make
— for his employer — on the customer.
Suppose the driver, considering him now from
the standpoint of his possibilities as a salesman,
were to deliver a load of coal in a neighborhood
where he saw that a new family was moving
in. If he had the ability and the knowledge, he
could go into that house, explain his connection
with the business and solicit an order. Inas¬
much as coal is one of the first things needed,
it would be almost a certainty that he would
get the order. And if this happened, a permanent
account would probably have been added to the
books of the coal dealer.
In communities where a fairly high grade of
help is already being used, much of the foregoing
is not apropos; but that part of it relating to
making a salesman of the driver is decidedly
relevant. If the drivers were trained to watch
for chances for getting business, it would be a
big advantage, even if they did no more than
make a report to the office of business-getting
opportunities which they run across. The coal¬
man himself sees chances for new trade every
time he leaves his office, and his employes have
similar opportunities. It is up to him to train
them to take advantage of these opportunities.
A Chance for the Coal Man.
Business men in all lines are looking for
chances to advertise in an effective way. They
are on the lookout for new stunts, novel means
of presenting their proposition, and unusual ways
of stating the same old familiar things. If any¬
body can suggest a new point or a clever way of
going after the customer, the merchant in prac¬
tically every field will express his appreciation
substantially.
Selling real estate is a difficult task, requiring
patience, wide knowledge of conditions, and a
thorough acquaintance. Real estate men have
become, especially during the past few years, big
and successful advertisers, because they have
found out that it pays to advertise in a big
way. All sorts of “stunt” features have been
developed in connection with real estate opera¬
tions, each intended to give the proposition suf¬
ficient “punch” to make it attractive.
In one or two cities where the writer has been
recently it has been observed that real estate
men advertise that home^ which are for sale
have the coal-bins fijled, and that the houses are
ready to be used. This is true especially of new
houses, just cornpleted. It often proves desirable
to have a fire in the furnace, in order that the
house may be warm and cheerful, and the intel¬
ligent real estate man, seeing that to go a step
further would cost only a few dollars, and would
have a big effect on the prospective purchaser,
has had the whole bin filled. On a house worth
several thousand dollars, the cost of the coal is
such a small percentage as to be a negligible
factor, while going into a house with the coal
supply already taken care of undoubtedly ap¬
peals to the man who is going to buy the
house. In one instance, a $7,500 sale was made
on the strength of this feature, the buyer being
unable to decide between two houses of equal
desirability until this feature was presented to
him.
A coal dealer could probably present this sug¬
gestion to real estate men and builders who are
putting houses on the market with every chance
of making a good impression. The advantage of
the stunt as a “talking point” would readily be
appreciated, and even after the novelty wore off,
it would be such a popular feature, from the
standpoint of the buyer of the property, that
practically all of those with homes for sale would
find it necessary to provide the initial coal sup¬
ply. In addition to getting this business, the
dealer could post his sign prominently about the
coal bin, so that the occupant of the house could
see who had furnished the fuel, and would thus
have the suggestion to continue to provide him¬
self from that source.
The point that the coalman should emphasize
in approaching home-builders on this subject is
that it would bring out more prospects, and that
the cost, figured on the value of the house, would
be a very small fraction of one per cent.
Protect the Driver.
Coal dealers who operate motor trucks should
consider the advisability of providing cabs which
will protect their men from the rigors of wintry
weather. It is impracticable in most instances
to do much in this direction with horse-drawn
equipment, but motor trucks can easily be fixed
so that the man at the wheel will be comfortable.
An opening can be made so that the heat of
the engine will enter the cab, and if this is en¬
closed completely, the driver will be snug and
warm. That this will add to his efficiency, and
thus be worth while from the standpoint of the
owner, is evident.
334
Till] BLA(Tv DIAIMONI)
[October 23
PUBI.ISHED EVERY SATURDAY BY THE
BEACK DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
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Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
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Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, October 23, 1915.
INDEX.
Special Articles.
Page
Do Coal Men Want to Kill the Sherman .\ct?.... 3-’.)
Can Coal Be Carried on Upper Mississijipi ? . 320
The Coke Industry in 1914 . 32S
Bearing of the Kellogg Price-Fixing Decision . 329
Mine Clearing House . . - .
Rate Hearing Is Resumed in Ohio . 331
Panama Canal Announcement . 331
Welsh Miners’ Wages . 331
Twin Cities Coke Plant . 331
New York Golf Tournament . 332
Norfolk & Western Tonnage . 332
Enoch Carver Dies . 332
National Coal Association . 332
Baltimore Coal Tonnage . 332
Field of the Retail Dealer . 333
Editorial . 334
News Local to Chicago . 33(i
Small Activities . 3311
Facts Which Determine Our Export Prospects . 337
Market Reports.
General Review and Chicago . 33S
Pittsburgh and Duluth . 339
Cincinnati, Detroit and Birmingham. . 34(1
Cleveland, Indianapolis and Twin Cities . 341
New York . 342
Philadeliihia and Denver . 343
New England, Baltimore, Buffalo and Omaha . 344
Hocking Valley . 1-’)
Old Enemies Made Friends.
The title of this editorial is an attractive
one to write to. It is susceptible of many
illustrations. Rather than taking the ob¬
vious slant at it — considering how by re¬
moving disagreements from our one-time
enemies we can get u])on terms of the most
cordial friendship — ive prefer to discuss
the situation created by the suggestion of
the mine workers. They propose that since
every business man has considered the
Sherman act his enemy, coal men should
make an assault upon it and kill it.
Rather than consenting at once to so in¬
teresting a jiroposal, we find ourselves in¬
clined to hold back and to ask even whether
this old and common enemy of all business
men has not been transformed by recent
events into a warm friend and a well-
meaning ally.
'I'he Sherman act 7c«5' for years consid¬
ered a bug-l)ear and a back breaker. That
was when the whole country was obsessed
with the idea that virtue resided in bigness
alone. In those days the very idea of big¬
ness was attractive because the people then
did not care to pay the bill createil by the
extravagance resulting from jiermitting
small men to get their liusiness education at
])ublic expense. The jieople thought that
system was rather hard on the consumer.
So, for a long time, they wanted to have
only big companies in which men could be
trained to do big things. After an individ¬
ual had grown big, he could form another
big comjiany in competition with the one
which had trained him. It was a very at¬
tractive doctrine which was preached in
those days of large thinking. It was said
that not only could America be given good
service cheaply hut the export field could
be brought under our control.
In those days of our mental extravagance
the Sherman anti-trust law was considered
the enemy of all mankind because it in¬
veighed against the formation of any such
large corporations because they are con¬
ducive to monopoly. In those days every
business man hated the .Sherman law most
cordially.
In these later days, the people have seem¬
ingly esjioused a wholly different doctrine
about the size of corporations. They no
longer want the hig ones under unit control
but small ones imcler multiple control. And
so, the popular attitude toward the Sher¬
man act has changed. That is, the people
are not quite so keen for big corporations
as once they were, but are coming to be
more sympathetic with the small men.
They don’t think it so much of a crime for
a small man to get his experience at public
expense.
One thing that changed public opinion
was a growing realization that big busi¬
nesses are all right if we have big men to
handle them. Rut, we have a limited sup¬
ply of big men. Therefore, our national
preference today is for small businesses,
run by small men, who get their education
from co-operative movements.
4'his newer idea makes the Sherman act
a friend rather than an enemy. That is, it
still stands as a threat to the man who
wants to monopolize. Also it keeps co-op¬
eration down, whereas it might want to as¬
sume large proportions if all restraint were
withdrawn.
The theory is that very few persons will
be good unless there is some coercion or
some fear. Coal men believe that co-oper¬
ation is a good thing. However, there
must be fear of something or co-operation
will not be an abiding force. Therefore,
the operators want to continue the fear of
the Sherman law as a check on mono]iolv.
Paternal Financing.
Many good and earnest coal men become
deeply concerned every now and then lest
ours develop into a paternal government.
As a matter of fact, it is far more jiaternal
today than most of them will believe possi¬
ble. And it is going to be more so before it
is less. Men fail to realize the extent to
which paternalism has gone, merely be¬
cause they fail to co-ordinate the informa¬
tion they have.
For example, everyone knows that we
have the income tax law. What they over¬
look is that the collection of that ta.x is a
mere incident. The vital fact is that in
order to make sure that all persons pay the
tax, the government has a right to send its
examiners into a corporation’s office to go
over the books. Thus the government can
get any information that it may want about
any business.
Coal men also fail to consider the jiater-
nal aspect of the Trade Commission bill. It
is going to teach uniform accounting. It
will even send experts into private business
to teach how accounting should be done.
Ry having its .system of uniform account¬
ing in a business it can get information
classified as the government wants it. Also,
the law creating the Federal Reserve
Roard is essentially paternal. This board
is now discounting the commercial paper of
private concerns. In order to do that, the
government must know quite a good deal
about the business of the concern whose
jiaper it handles.
These seem to be rather elaborate steps
in the direction of controlling private busi¬
ness, but the big development has never
been brought out. L’'^ntil the passage of the
bill creating the hAderal Reserve Roard,
the government was merely maintaining a
system of espionage over private banks. It
interfered in no way with the function of
hanking. With the jiassage of that law,
the government went into the banking busi¬
ness. Ranking is no longer a private busi¬
ness only. It is private so far as collecting
the deposits and negotiating the loans is
concerned, but it is a public matter when
it comes to that holy of holies of the bank¬
ing Inisiness — the rediscounting of commer¬
cial paper. That is, we have no longer a
]trivate hank, but a hybrid organization.
Some business men are almost sure to re¬
sent this interference of the government
because by so. doing it will gain intimate
knowledge of their business. They con¬
sider it all right and proper to tell the
secrets of their business to the private
banker, but they don’t care to tell them to
the government.
Perhaps the reason is they are doing
things of which they are ashamed. That
,is, their acts may not be exactly corrupt,
but still not orthodox when considered
from the moral or ethical point of view.
In a word, some of them have been making
money a little surreptitiously. Of course
if the government becomes acquainted with
these side-door and back-door methods a
way will be found to correct them.
Rut there is still another angle to the sit-,
nation. The government, so long as it has
stood on the side lines of the business and
knew nothing about it, was inclined to
adopt an idealistic idea of what business
should do. Having no conceiition of busi¬
ness difficulties, it was inclined to lay ex¬
traordinary burdens on business. Maybe
if the government gets a few more facts, it
may be a little more sensible.
In other words, paternal financing may
tone u]) the morals of business and tone
down the impracticality of the government
and result in a pretty fair compromise.
Talkers in Business
You can almost tell, from the amount of
talking a man does, just what is his status.
If he talks a great deal, he either is not
using his faculties to the best advantage in
the job at hand, or he has latent possibilities
which have not yet been called into full ac¬
tion. If he has the ability to talk, but does
not, he probably has arrived at a full reali¬
zation of his capabilities and is devoting
100 per cent of his energies to the work at
hand.
Conspicuous examples jmesent them¬
selves. Theodore Roosevelt is probably
the greatest talker of all time. Two things
are true about his career.
First, he was never conqdetely on any
job. I'hat is to say, he never did all that
he was capable of doing with any one situ¬
ation. Perhaps he was too much interested
in talking about it to quit talking and get
down to detailed work.
Second, no man who has come into
])rominence in America has had greater
thp: black diamond
335
No. 17]
possibilities than Roosevelt. His capacity
for knowing things and for covering a
great amount of territory in his mental in¬
vestigations is astounding. He has an al¬
most unlimited capacity for acquiring in¬
formation. This faculty alone proves that
Roosevelt is one of the greatest men of
America.
But, his voluminous utterances prove
also that he either had not arrived at a po¬
sition where he could use all of his abilities,
or being in that position he has not used his
great ability to the best advantage. Per¬
haps both things are true.
The most conspicuous example of the
silent man was J. P. Morgan. The few
things that he has been quoted as saying
prove that he had the ability to talk. Still,
he said very little. His record of achieve¬
ment shows that perhaps no man ever came
nearer realizing 100 per cent of his ca¬
pacity. The organization of the com¬
munity of interests of railroad control, the
Steel Corporation, the International Mer¬
cantile Marine, and the other combinations
are clear proof of his enormous capacity.
It is also proof of the fact that he devoted
himself exclusively to doing things instead
of talking about them.
In a much smaller way, any observant
coal man can go through his list of friends
and get a lot of diversion by trying to de¬
cide whether the volcanic talkers are merely
wasting time, or are expressing latent abil¬
ity of large order. By observing the silent
ones in the trade, they can speculate
whether the gentleman is merely tongue-
tied, or whether he is devoting himself in¬
tensely to the job at hand.
Seeking a Master.
Any one in position to watch the develop¬
ments of the coal trade must have con¬
cluded that the dominating desire of the
industry is for a master. It wants that
more than it wants anything else. It wants
a system of control and if that is not pos¬
sible it wants personal control.
I'or years all coal men have talked this
subject all of the time; consequently, they
think of it constantly. It has become al¬
most an obsession with them and they
would abandon pretty nearly every other
program in order to get just this one thing
— a system or a person to control the busi¬
ness.
d'he fact which every one appreciates is
that the coal industry is a great body with¬
out a head. It is like one of those vege¬
table organisms of which we hear ; it has
no heart and no center of influence. In¬
stead there is a sort of life center in every
atom of its entire being. The coal trade is
precisely like that. Every place where there
is a coal office there is also a master of
some small part of the business. These
isolated centers of control are in no sense
and in no way related to each other. They
do not even act in conjunction with each
other, or out of consideration for each
other. They are distinct and separate en¬
tities, each pursuing his own way as it
])leases him to do from minute to minute.
L nder the circum.stances there is no trade
program and cannot he.
.411 coal men are possessed of the human
longing for, first, relations with other hu¬
mans and, second, for a form of control.
It is this longing which, expressed in our
community life, caused us to create the Fed¬
eral Hovernment for our political mastery.
Having it, w'e endowed it wdth far more
power mentally than we could do or did by
the constitution. We did that because w^e
w'anted a master for the whole people and
knew' that we could not get along without
it. The coal trade is looking for precisely
some such form of control. It would be
perfectly willing to give supremacy to any
system or any person wdio could prove it¬
self or himself the master of the trade.
If any one doubts this conclusion, we
invite him to read over the addresses made
before any number of trade conventions in
the last ten years. If this is not the domi¬
nating desire of them all, w'e have lost our
ability to understand the meaning of plain
human speech.
A Day in Autumn.
Such w'cather as we are having may not
be good for the coal business, but such days
as these are good for the human soul. They
give a man a chance to run out of hopples
and feel free. In summer man is kept bu.sy
fighting the heat, the mosquitoes, and the
army of bugs. This subtracts much of
his vital energy from life’s real purpose and
devotes it to nonessentials. In the winter
time he is fighting the cold. He is sub¬
tracting from his big work a part of his
store of vital energy and devotes it to a
struggle for ordinary physical comfort. In
the spring, generally, he is fighting the rain.
Thus in nearly all seasons a man is physic¬
ally and mentally below i)ar before he even
begins to work, because so much of his
energy is subtracted from the immediate
thing in hand.
But in days like these man is left master
of all his faculties for the accomplishment
of the w'ork at hand. It is not w'arm enough
for discomfort. It is not cold enough to
invite resistance. The insects which have
annoyed have gone for the year. And every
outlook on nature tones up rather than
tones dowm the man’s physical organism.
Therefore, in times like these, a man is,
and should be, his best.
Union Extravagance.
One of our lively contemporaries in
Oklahoma remarks in caustic fashion upon
the fact that it cost $15,000— $800 a day —
to oust one Peter Hanraty from the presi¬
dency of District Twenty-(3ne of the
United Mine Workers.
C)ne coal operator made comment to the
efifect that this explains wdiy the miners’
union is now' poor. He started with the fact
that this small convention in Oklahoma cost-
$800 a day. Then he enumerated the more
elaborate and costly conventions in the va¬
rious eastern states and ended by comjnit-
ing the enormous expense of holding an
international convention. He was a trifle
dis])Osed to criticise the union for sending
so many delegates to so many state conven¬
tions.
Rather than criticise this tendency, w'e
are very much disposed to encourage it.
We suggest, instead of delegate conven¬
tions, that they get together as a commit¬
tee of the whole ; that is, that they have
all of the miners assemble at state con¬
ventions and most of them attend the
international conventions. We suggest
that the union jjay both mileage and per
diem while the men arc thus regaling
themselves. If we can ])ersuade the union
to spend its money in that w'ay, it will
not have so much money to use to wdiip
the operators every few months. There¬
fore, let us all get together and boost for
a miners’ convention of the whole.
Coal Thoughtlessness.
No industry has ever had as many or as
severe critics as has coal. The most severe
of them all are men engaged in the coal
trade. Coal men are always saying of other
coal men that they are a thoughtless crowd
— that the men in the business cannot see
beyond the points of their own noses. Any
coal man wdll proceed to elaborate his view's
by reciting any number of instances which
seem to ])rove his conclusion. Candidly,
some of the evidence is convincing.
Still, leaving all passion aside, isn’t it pos¬
sible that there may be good cause for this
apparent thoughtlessness of, coal men?
Isn’t it, for example, just another way of
saying that the coal producers are uj)
against a proposition w'hich discourages all
of them? Isn’t it possible that instead of
trying to do the thoughtful thing and the
far-sighted thing, they know it is useless
and must ])lunge ahead in a disheartened
w'ay, hoping that something almost miracu¬
lous will get them out of their ever-present
dilemma ?
As a matter of fact, no man can think
seriously about coal production as it stands
today w'ithout becoming more or less dis¬
couraged. I'ew men can face one fact
alone about coal ; follow it to its logical con¬
clusion, and fail to be disheartened at the
outlook. .Some statisticians say that the
supply of coal w'ill last for a thousand
years, even though the ])opulation increases
at the same rate as has been the case in re¬
cent decades. Others limit the supply to
150, 200 or 250 years. The length of time
the coal supply will last does not make any
difiference. The determining fact is that
whether we have a hundred years’ supply,
or a thousand years’ sup])ly, all of it, under
present regulation.s — or lack of them — can
be opened up w'ithin a year’s time and made
available for immediate use. That is, if
the coal business today were, by any
scheme or device, to be made universally
profitable, it w’ould be possible to duplicate
within the next year the existing product¬
ive capacity in any one field. It would be
possible nearly to double the output in the
w'hole producing district. Indeed that is
probable. Therefore, if any operator ever
gets to 'a jjoint w'here he can be sure of a
profit, the fact of his ])rofit will wreck or
jeopardize his business by inviting any
number of new competitors. In essence, the
object of these competitors will be to chal¬
lenge his right and ability to collect the
money which spells his profit.
It is this fact which eternally is in the
back of the head of every coal man. They
meet it every time they think of tomorrow.
Under the circumstances, there is not much
room for practical idealism in the coal
trade. Nor as a matter of fact is there rea¬
son for any far-sighted thinking. Most coal
men don’t w'ant to think too far into the
future. If they try it, they can find noth¬
ing that will w'arrant that enthusiasm w'hich
most of them have to i)Ut into their busi¬
ness every day to move the ])rc.=ent ton¬
nage.
Berhai)s this explains the a])parent lack
of forethought — or any serious thought at
all, on the i)art of coal men.
[October 23
336
News Local to Chicago.
Carl Scholz, president of the Rock Island
Coal Mining Company, left on Frida}' night for
a *^rip to Oklahoma.
L. O. Stanton, general sales agent of the
Clinton Coal Company, with headquarters in
the Old Colony Building, was on a trip over
the territory this week.
Enoch Carver, western representative of the
New River Coal Company, with headquarters
in the Fisher Building, was called to Charles¬
ton, W. Va., on Friday of last week, due to the
death of his father as a result of a mine acci¬
dent. He is not expected to return to Chicago
until Monday.
W. R. Kernohan, western representative of
the Pocahontas Coal Sales Conipany, with
headquarters in the Fisher Building, retiirned
the latter part of last week from his trip to
California, where he spent four weeks. While
there he was paying a visit to the relatives
of his wife and incidentally taking in the expo¬
sition.
The propert}^ of the Dering Coal Company
of Delaware, in Vermillion county, Indiana,
and in Fayette township, Vigo county, Indi¬
ana, which was sold last May on foreclosure
sale to Henry Russell Platt of Chicago, has
been purchased by the J. K. Dering Coal Com¬
pany. These properties include the old No.
6 mine, near Durkee’s Ferry; the old Willow
Grove property, just west of Clinton; 320
acres about a mile south of Durkee’s Ferry,
and some other isolated tracts. Work will
be begun at once to sink shaft at the old No.
6 mine to the fourth seam of coal and the
company expects to be taking out coal with¬
in sixty days.
The speakers' committee of the Chicago Coal
Merchants’ Association, of which Leo Ro-
manski is chairman, held a meeting on Friday
afternoon of last week to arrange for the forth¬
coming dinner of the association. It is now
planned, unless something interferes, to hold
this dinner on the evening of the second Tues¬
day of November. At that time there will
probably be some moving pictures, some music
by a quartet that has won quite a reputa¬
tion as an entertainer, and there will be just
one address, which will be a presentation of
the record of the Chicago Coal Merchants’
.A.ssociation on what it has done for the coal
trade in the last year or two.
James F. Callbreath, secretary of the Ameri¬
can Mining Congress, arrived in Chicago on
Wednesday of this week from his western trip
and stopped for two days on his way to Wash¬
ington. VVJiile here, he made some preliminary
and tentative arrangements for the mining ex¬
position, which is to be held in Chicago about the
first of December next year. He is concern¬
ing himself quite a good deal with the organi¬
zation which is to be effected in Chicago be¬
cause this will be one of the major efforts of
the congress. Mr. Callbreath announces that
he expects to spend the better part of this year
in Chicago making arrangements for the ex¬
position and conducting the details of the
work.
Charles L. Dering, Chicago manager for
S. C. Schenck, in commenting upon the anthra¬
cite situation, made one statement which is
proof conclusive that the coal market this
year is a weather affair. He called attention
to the fact that until recently there was quite
a large and bothersome accumulation of coal
on wheels at all of the western distributing
points. The companies did not know just ex¬
actly how they were going to move this with¬
out paying too much demurrage. However,
there came a spell of freezing weather and the
entire accumulation was cleaned up in thirty-
six hours. On the heels of all of that came
a warm spell for the last few days, and or¬
ders have fallen off again. In this same con¬
nection, salesmen in the Pocahontas field call
attention to a similar situation in the western
market. Recently there was quite an accu¬
mulation of smokeless coal at the hold points
around Chicago. For a while the smokeless
companies had to pay a dollar or two demur-
ra.ge on each car in order to avoid cutting the
price of coal. However, in the last few days
the operators curtailed production and the de¬
mand has quickened a little, so that now in¬
stead of paying demurrage, the railroads are
getting reconsigning orders carrying car num¬
bers within two days after the car in ques¬
tion has left the mines.
On Saturday night of this week the Kan-
tishna Club will hold the first of a series of
THE BLACK DIAMOND,
informal dinners at the Hotel Planters at
7 p. m. sharp. This club will be addressed
by the Hon. James C. O’Brien, assistant
state’s attorney of Chicago. The genesis of
the Kantishna Club will be remembered. That
is, a short time ago a number of the New River
coal operators invited a number of Chicago re¬
tailers to .go to the New River field and inspect
the mines. The purpose of the trip was to give
the New River coal an identity of its own in the
western market. Those who went on this trip
subsequently held a dinner at the Hotel Planters
and arranged to form the Kantishna Club, the
name being that of the car in which the party
went to West Virginia. Subsequently the club has
espoused larger ideas, as it now aspires to become
the social club of the coal trade and ultimately
to have quarters of its own. For the present
it is going to be content with a number of in¬
formal dinners throughout the winter, the
number, perhaps, running into six or seven.
To pay for these dinners ahead of time, the
members of the trade are asked to pay $15.00
per capita. This is the adoption in Chicago of
the plan by which the Kokoal koruskations in
Philadelphia were financed a year or two ago.
If the temporary organization proves attrac¬
tive, the club will be given definite organiza¬
tion next fall. In the meanwhile, organizers
of the club are soliciting members from the
coal trade generally, and now have a mem¬
bership of about fifty, and divided about half
and half between wholesalers and retailers.
Car Shortage on C. & O.
The car shortage on the Chesapeake & Ohio
Railway became so serious that officials of
the road held a meeting in Charleston, W. Va.,
on last Saturday to try to find a solution to
the present shortage.
At the meeting among those present were:
J. Paul Stephens, general manager of the
Chesapeake & Ohio Railroad; Baker Harris,
superintendent of the Hinton division; L. B.
.411en, superintendent of the Huntington divi¬
sion, and J. W. Herron, chairman of the allot¬
ment commission of the road.
The car shortage, it was explained, is due
to the shipment of coal to the northwest; al¬
ready more than 1,000 cars are there and have
not been returned. They have been seized
liy the Pere Marquette Railroad and are being
used in the beet sugar industry. They are
loaded with sugar beets en route to the
factories. They are ideal receptacles for this
commodity. But in the meantime the coal in¬
dustry on the Chesapeake & Ohio is injured.
The Pere Marquette pays the Chesapeake &
Ohio forty-five cents a day for the use of the
cars, but collects $1 a day from the shippers
for demurrage, thereby clearing fifty-five cents
a day besides having the use of the cars dur¬
ing a period when they are needed.
Another thing which causes the shortage is
the long haul to the northwest and the regu¬
lar length of time it requires for them to be
returned. Still another reason is the number
of bad order cars the road has. It is explained
l5y the operators that bad order cars are those
not fit to use and which are in bad order as
a result of intrenchment of a few years ago,
following the outbreak of the European war
when the appropriation for this feature was
very small.
The shortage would not have been noticed
a year ago, but business has increased so much
in a year that every car is now needed and
even the roads recognize the arrival of good
times.
To Stop Theft of Coal.
Members of the Detroit Coal Exchange are
endeavoring to correct the long standing abuse
of permitting theft of coal from cars on railroad
tracks. Most of this theft is charged to per¬
sons of foreign birth, living in the vicinity of
the railroad yards and sidings. F. E. Reeves,
secretary of the exchange, has obtained the co¬
operation of representatives of various railroads
and of the police department, while the police
judges and prosecuting attorney’s office have ex¬
pressed an inclination to aid in the reform. Sev¬
eral persons detected taking coal from stock piles
and cars have been brought into police court and
fined, the amount in the case of the first ar¬
raignment being $10. It is proposed to continue
the campaign vigorously.
Small Activities.
George D. Rowland, vice-president and secre¬
tary of the Richland Coal Company, is spending a
large part of his time in Cleveland at present
looking after lake shipments. He is expected to
visit the Buffalo office this week.
L. J. Bradley, traveling man for the Quema-
honing Coal Company, suffered a painful ac¬
cident in Winchester, Va., early this week. He
was getting out of an auto and tripped on
the step falling heavily on a curbing in the
street. Two broken ribs resulted.
Lake Ontario seems to be losing, rather than
gaining, coal and other tonnage. It is announced
that the Rutland Transit Company has sold its
last two steamships, the Rutland and the Ogdens-
burg, and they will be transferred to the Pacific
Coast. Some of the boats of this line were
sold to Atlantic Coast coal companies and car¬
ried coal when nothing better offered.
A meeting of some of the Buffalo coal men
was held last Saturday at the office of J. T.
Roberts for the purpose of forming a bowling
club. It is hoped to form a good-sized organiza¬
tion and quite a few men are already members.
The securing of an available bowling alley is
something of a problem, for it is found that
most of them are already engaged practically all
the time.
Ohio C. Barber, head of the Cleveland, Akron
& Canton Terminal Railway Company, has plans
a coal handling plant on Cleveland’s lake front,
if his company is granted a franchise to build
a four-track subway under East Fifty-fifth street,
from the lake to Morgan Run in Cleveland. This
will open the way to all roads approaching the
city from the south and southeast directly to
the lake front at the foot of East Fifty-fifth
street. The franchise was passed by the city
council some time ago and will be submitted
to a referendum vote at the fall election. Mr.
Barber said his company will erect a steel and
concrete loading plant that will have a capacity
for loading four 10,000-ton boats per day, if the
franchise is granted.
As yet the railroads have not filed their new
schedules, showing increased differentials between
Ohio and West Virginia, with the Ohio utilities
commission, but it is said that they are being
prepared for that purpose. There is a possibility,
of course, that the West Virginia operators will
file a demand with the Interstate Commerce Com¬
mission for a suspension of the rates, when they
are ready to put into operation, but this remains
to be seen. While this would delay matters, the
operators of the eastern Ohio district feel that
the advantages in favor of West Virginia are
now so great and the differential so small in
comparison with the difference in the length of
haul, that they will eventually fail in their pur¬
pose. A suspension would do little good under
the circumstances, it is believed.
J. P. White, international president of the
United Mine Workers of America, is busy at
the present time in the central Pennsylvania bi¬
tuminous districts. Mr. White was very active
in the Cambria county section during last week.
One of the biggest meetings that he attended was
at Beaversdale on Friday, the 15th. Here he
spoke to about 2,500 miners. In his address he
confined his remarks to an answer of the accusa¬
tions of his enemies who were opposed to the
organization of labor, giving in that talk his
version of the strike in Colorado. He pointed
out that when he assumed the presidency of
the mine workers’ organization four years ago,
it had only 17,000 members in the anthracite
fields, but now the total membership in the an¬
thracite districts amounts to 155,000.
The appellate court has sustained the contention
of the Erie Canal Coal Company regarding the
law of 1907 regulating the width of entryways
to coal mines. The court at Princeton instructed
the jury to find for H. T. Elder, administrator
of the estate of John Byers, who was killed at
the mine. The higher court held that this was
an error. The court finds that the law does
not require a coal mine, relaying a track after
the passage of the law in an old entryway, to
widen the way to the width required by the law
in controversy. It is the first time that the law
has been construed regarding old ways which
have been repaired and the court holds the
law should be construed to protect the worker
for all ways constructed after the law was passed,
but should not put the difficult task of attempting
to reconstruct old ways on the owner.
No. 17]
THE BLACK DIAMOND
337
Facts Which Determine Our Export Prospects.
The Export Situation.
The shipment of export coals through the At¬
lantic seaboard ports has slumped very heavily
during the past few weeks, owing to the scarcity
of vessels. Very few steamers are to be ob¬
tained for coal charters now, as their owners
are securing such fancy prices for grain and
war munitions, that they are only taking coal
charters when rates obtain that are practically
prohibitive. Most of the coal now goin.g into ex¬
port is being shipped in bottoms that were under
time charter, or were chartered sometime before
the recent high freight rates became effective.
This week charters to Italy are talked of at 60s
to 65s, 50s to 55s to Spanish ports, and 55s to
60s to French ports. To South American ports
the range is from 38s to 42's.
Advices from Cardiff show that freight rates
have advanced there materially, since the Greek
merchant steamers were withdrawn from general
trade. Late mail reports indicate that vessel
owners are asking 40s from Cardiff to the River
Plate, rates to the Mediterranean range from
about 32s to 38s.
Some few inquiries are now being entertained
by American coal exporters, but there is not the
great demand for coal that existed several months
ago. However, the situation may change any day,
and it is recognized that practically all of the
foreign countries that have to import coal, have
very bare supplies.
Twenty light cargoes, totaling 125,000 tons,
was shipped from Hampton Roads last week.
Italy took ten of these cargoes, or approximately
65,000 tons.
Exports to South America.
Due to the shortage of ships and the practically
prohibitive freight rates now being asked on ex¬
port coal, American shipments to South Amer¬
ican countries have begun to decline.
In this respect, it is interesting to note that
Wales is sending a greatly decreased tonnage to
South America, as shown by the table below.
This, in connection with American curtailment
in shipments, would indicate that the South Amer¬
ican countries are very barren of coal at the
moment, or else their field needs have been
radically reduced.
Exports from the Welsh ports for the first
eight months of this year, up to August 31, show
shipments as follows:
Decrease
From Same
Country — • 8 Mos. 1915. Period, 1914.
Argentine . .'. 944,479 10,596
Brazil . 320,371 422,750
Uruguay . 176,526 212,092
Chile . 36,229 185,754
1,477,635 1,031,192
This shows a decrease of 1,031,192 tons for the
first eight months of this year as compared
with the same period in 1914.
Coal Trade at Tampico, Mexico.
The American vice-consul at Tampico, Mexico,
writes The Black Diamond regarding the coal
trade there as follows:
“Owing to the fact that crude oil is used al¬
most exclusively as fuel in Tampico and vicinity,
the demand here for coal is very limited.
“However, the Agencia Comercial y Meritima
import about 5,000 tons per month for the con¬
sumption of the American gunboats anchored
here.
“There have been no improvements made in
the coal docks during the past five years at this
port. Owing to the fact that the records of
the custom house were destroyed previous to
the entry of the Carranza forces into Tampico,
it is now impossible to get any statistics in re¬
gard to the importation of coal.”
Santiago, Cuba, Trade.
P. Morrell Griffith, American consul at San¬
tiago de Cuba, writes The Black Diamond under
date of October 5th :
“About 60,000 tons of bituminous coal is im¬
ported annually. This coal is consumed by the
Cuba Copper Company, Juragua Iron Company,
Santiago Railway Light & Power Company, San¬
tiago Brewing & Ice Company, and several small
consumers. The cost of same is about $6 per
ton landed in Santiago. The Cuba Railroad im¬
ports coal through Antilla, and the Spanish-Amer-
ican Iron Company, which imports about 10,000
tons annually to their own docks at Daiquiri, a
subport of Santiago de Cuba, is not included in
the 60,000 tons above mentioned.
“There is little demand for coke, only about
400 tons being imported annually.”
United States Coke Exports.
Bulletin 11.25 just issued by the Department
of the Interior, and prepared by C. E. Lesher, of
the Geological Survey, says of the export trade in
coke:
“The quantity of coke exported from the
United States increased steadily from 1900 to
1907. Since 1907 the value of the exports has
alternately increased and decreased although with
slmight fluctuations it has remained practically
stationary during the last six years. The exports
in 1914 were the lowest since 1904.
The exports of coke during the last six years
are shown in the following table, the quantities
being reduced to short tons :
Year — -
1909 ...
1910 ...
1911 . . .
1912 . . .
1913 ...
1914 . . .
Quantity.
1,002,916
984,618
1,023,727
912,576
987,395
663,585
Baltimore September Exports.
Statement of bituminous coal exported from
the port of Baltimore during the month of Sep¬
tember, 1915, taken from the custom house rec¬
ords at Baltimore:
Country — Tonnage.
France . 17,499
Italy . 75,081
Spain . 13,792
Sweden . 36,499
Costa Rica . 6,882
Honduras . 1,377
Panama . 2,949
Cuba . 16,315
French West Indies . 919
Argentine . ' . 10,783
Brazil . 6,858
Peru . 4,604
Venezuela . . . 337
Egypt . 7,031
Total . . 200,926
Welsh Coal Exports.
The returns published by the British Board
of Trade are now available, and the following
table shows the amount of coal exported from
the Bristol Channel (Welsh ports) to foreign
countries and British possessions during August
last compared with the corresponding month of
last year.
August—
Russia . . . . .
Sweden .
Norway .
Denmark .
Belgium .
France .
Algeria .
Portugal .
Spain .
Canary Islands .
Italy . I
Austria-Hungary .
Greece .
Roumania .
Turkey (Asiatic) .
Tunis .
Chiii .
Brazil .
Uruguay . ._ .
Argentine Republic .
Gibraltar .
Malta and Gozo .
Egypt . .
Anglo-Egyptian Sudan .
Ceylon and dependencies...
-Tons-
1915.
1914.
17,089
7,100
7,684
6,973
11,695
959
8,832
11,043
604,291
296,678
25,705
20,086
37,746
39,516
54,653
73,595
4,698
8,836
220,288
254,466
5,711
5,437
11,554
5,381
3,767
22,253
2,090
12,086
1,187
13,773
27,557
30,654
15,115
20,234
105,137
81,129
13,105
6,477
4,693
9,330
69,205
88,151
11,564
5,232
The following table shows the total shipments
for the eight months of the year, together with
the increase or decrease as the case may be,
compared with the corresponding period of 1914 :
Eight months ended August, tons —
Russia .
Sweden .
Norway .
Denmark .
Germany .
Netherlands .
Java .
Other Dutch possessions .
Belgium .
France .
Algeria .
French Somaliland .
Madagascar .
Reunion (Bourbon) .
Portugal .
Azores .
Madeira .
Spain .
Canary Islands .
Italy .
Italian East Africa .
Austria-Hungary .
Greece .
Bulgaria .
Roumania .
4,704
57,366
63,161
27,638
22,720
6,550
5,717,285
298,547
97,575
13,554
500,913
27,381
36,452
551,767
154,856
2,159,542
5,043
162,419
Turkey (European) . 6,557
Turkey (Asiatic) . 3,767
Decrease
355,831
59,836
35,955
2,595
174,423
34,854
7,062
23,327
225,003
*1,062,948
108,797
*36,158
1,258
5,498
85,085
*12,585
14,176
320,106
173,776
1,269,657
4,317
127,749
185,008
63,238
183.535
101,208
159,828
Tripoli .
Tunis . 69,180
Peru .
Chile . 36,229
Brazil . 320,371
Uruguay . 176,526
Argentine Republic . 944,479
Channel Islands . 27,833
Malta and Gozo .
Gibraltar . 131,968
Egypt . 540,263
Cape of Good Hope . :. 5,545
Anglo-Egyptian Sudan . 20,753
Mauritius and dependencies . 8,813
Aden and dependencies . 99,052
British India . 13,912
Straits Settlements . 1,561
Ceylon and dependencies . 36,169
Hong Kong .
Canada . 394
Bermudas .
British West India islands . 2,573
West Africa (British) . 36,294
West Africa (French) . 97,575
West Africa (Portuguese) . 91,842
8,035
41,761
12,718
185,754
422,750
212,092
10,596
16,254
147,567
16,016
719,642
19,898
11,436
4,641
*3,327
75,213
15,146
157,896
10,366
756
10,530
9,593
9,924
*36,158
*21,250
*Increase.
Recent Coal Freight Charters.
Schr. Marguerite, Norfolk to St. John, N. B., coal, p. t.
Schr. Edgar W. Murdoch, Norfolk to Canary Islands,
coal, p. t.
Schr. J. T. Maxwell, Baltimore to Surinam, coal, ji. t.
Schr. Pendleton Sisters, Philadelphia to Surinam, coal,
p. t.
Schr. Evelyn W. Hinkly, Philadelphia to Porto Rico,
coal, $3.
Schr. W. E. Downes, Philadelphia to Fort de France,
coal, p. t.
Str. Hesperos (Nor.), Virginia to River Plata, coal,
$8.15; 500 tons discharge. “Prompt.”
Str. Plymouth, Baltimore to Egypt, coal, $15.50; 7,000
tons cargo.
Schr. Dorothy Palmer, Norfolk to west coast of Italy,
coal, $10.
Schrs._ Ruth B. Cobb and Alice B. Phillips, Baltimore
to Martinique, coal, p. t.
Schr. J. Frank Searney, Philadelphia to St. John,
N. B., 600 tons coal, p. t.
Schr. Annie, Philadelphia to Casilda, 1,000 tons coal, $4.
German Coal Combine.
The weekly report of general conditions in
Germany during the European war as published
by the American Association of Commerce and
Trade at Berlin, under date of September 25,
1915, says:
“In order to prevent an obligatory combine of
German coal mine owners, which threatened the
dissolved coal syndicate, the efforts for reorgan¬
ization have been successful.
“The outlook of the coal trade, therefore, has
become brighter and business proceeds in its
accustomed channels. The demand for coal and
coke continues unchanged ; especially in view of
the approaching winter, the demand for anthra¬
cite is very great. In spite of increased output
of mines, the private demand cannot be met,
as the greater part of the output is 'shipped to
briquette mills and cokeries, the latter, however,
not operating as yet to their full capacity.
“Considering that as a result of enlarging
cokeries and establishing new plants, the output
of coke has considerably increased, a shipment
of eighty per cent of the production reaches the
maximum as recorded in 1913.
“The impossibility of further substantial in¬
crease of coal production does not permit a fur¬
ther increase of coke production, for which
reason the large stored supplies of coke are grad¬
ually reduced.
“Coal exports to Holland are keeping up in
a limited measure, so that the demand from
Holland is almost as large as before.
“The export of coal to Belgium having for
some time been limited, considerable shipments
of industrial coal as well as of household coal
and briquettes from Belgium to western Germany
have been made. Even greater than the demand
for coal is the demand for by-products of cok¬
eries, and benzole, especially^ cannot be furnished
in sufficiently large quantities. Tar and tar
products are finding a ready market.
“The difficulties in the supply of labor, espe¬
cially of skilled help, are not as yet removed,
and although miners from Poland are now em¬
ployed in German mines, a noteworthy increase
of coal production cannot be figured with at
present.
“Nevertheless, the German Fuel supply can be
viewed as entirely satisfactory, even if in some
grades of fuel a scarcity is now and then felt.”
The Swedish State Railway management has
just purchased in Westphalia, Germany, 20,000
tons of coal briquets and 72,000 tons of coke for
use as locomotive fuel. A circular has- been
issued to all the district managers giving in¬
structions in regard to their use. The coal will
be used alone, but a mixture of coal and briquets
may be undertaken later, as experiments in Den¬
mark tend to show that such a mixture, with
English coal is a success. _ It is stated that in
mixing about equal proportions of coke and coal
briquets will be used.
338
[October 23
THE 15EACK HIAMOXD.
General Review.
The Demand for Coal Is Good, While
Car and Labor Supplies Are Short.
Exports Are Small.
The coal situation this week is made inter¬
esting and tl'.e trade is made profitalde, mainly
because the railroad car supply and the sup¬
ply of labor have not kept pace with the
activi'ies of the coal mining companies in
arranging' for increased output. that is to
to say, the operators have multiplied the mines
and elaborated mine development enough to
take care of the present very large demand
for coal and much more. They are pre¬
vented from running these mines no capacity,
lirst, because the railroads have not increased
the supply of coal cars and, second, because
the labor situation has been far from sat¬
isfactory.
The coal car situation has been growing-
more and more serious for the last three
or four weeks. On certain lines in the east,
the best the railroads can promise is to
give the coal mines a fifty per cent supply.
In the majority of cases, what they actually
do is to give them a thirty-five per cent sup¬
ply. This is measured by the requests of the
operators for cars. In some places they
are giving only a twenty-five per cent
supply. This does not mean that the
railroads can only haul twenty-five to thirty-
five per cent of the coal that is being con¬
sumed, because that would mean that the
country was subsisting mainly on coal pre¬
viously placed in storage piles. It does mean
that it is only twenty-five to thirty-five per
cent of what the operators think they could
ship and sell if they had the cars. Inci-
dently, that is more even than the mines
could produce.
There is no doubt a shortage of cars as
compared with possible mine production and
we should say that that amounts to about
fifty per cent or in that neighborhood. How¬
ever. there is no indication that the market
could absorb such an amount of coal as could
be produced. Thus the seeming shortage of
cars is of decided benefit to the trade as pro¬
tecting it against itself.
As to whether the shortage of cars is real
as concerns the demand is another question.
Perhaps a percentage of coal is being sub¬
tracted from storage and burned now, but
if that amounts to ten per cent of the total
volume of consumption it is enormous. We
doubt whether it amounts to as much as five
per cent. Even so, a very small shortage is
sufficient to influence the price quite mate¬
rially.
The labor shortage in some districts is be¬
coming quite acute. Recent statements were
to the effect that the sailings of emigrants
was in recent months far heavier than the
arrival of immigrants. This means that there
was a net loss of workers in America. Re¬
ports from one coal producing district of West
Virginia shows that it contains .3,000 Greeks,
who are subject to a call to arms and who
may leave at any time. Recent sailings of
Italians have been heavy. Previously the mis¬
cellaneous losses of laborers had in the aggre¬
gate been large. The net result is a shortage
of labor at the mines for which reason, the
productive capacity of these mines has been
decreased.
As to the coal movements, the last week
or so brought some interesting developments.
The movement to tidewater for e.xport has fallen
off quite sharply, not because there is a lack
of demand abroad, but because vessels can¬
not be had to effect the movement. Like¬
wise the demand for steam coal in New Eng¬
land, which seemed so promising has not
kept up. In other portions of the east, how¬
ever, the demand is keen and the operators
cannot supply it.
The lake trade has been disappointing be¬
cause the operators could sell coal, but can¬
not ship it unless they pay premium prices
for vessels which are attracted by the high
rates in the grain trade. This they are not
disposed to do. Even so. the Pittsburgh dis¬
trict is booming, the mines being sold up
for the remainder of this year and any sur¬
plus demand for coal will have to be satisfied
from Ohio or West Virginia. In the latter
place the labor is short, so that Ohio will
get the business if any is done.
In the west the situation in some districts
IS acute. The farmers have delayed the move¬
ment of the grain, due to the wet weather.
The movement is now started and this is
complicating the situation all around, first
by subtracting from the car supply and, sec¬
ond, bj’ making money short in some of the
rural districts. It promises to concentrate
a demand for coal that is now being held up
into the later months. As this indicates, the
west is the only point in the national mar¬
ket where the coal trade is not in a very
strong position.
Chicago Market.
Warm Weather Interferes With Buying,
but Prices Are Firmer.
Screenings Are Strong.
Office of The Bl.\ck Di.vmond,
Chic.\go, October 21.
The immediate situation in coal is a trifle
easy because of the weather. The technical situa¬
tion of the market is strong because of small
supplies in storage; a present and a threatening
shortage of cars ; and, in some places, a shortage
of labor.
Taking a quick survey of the whole market,
anthracite was good but is now easy. Smokeless
has a fair demand, but is influenced most by the
car shortage. Illinois and Indiana coals had a
good demand, but the softening of the weather
lessened it. Screenings are firm because of
smaller lump production and because of recent
heavy sales, some of which are intended for
storage purposes.
The Franklin county situation, everything con¬
sidered, is in good condition. Domestic orders
eased off a little during the warm days the first
part of this week. It left the mines, however,
with enough orders to keep them going for an¬
other ten days and a probable change of the
weather in that length of time will likely restore
the strength which the market enjoyed until
INIonday. The domestic market is primarily a
weather market and will follow fluctuations in
temperature rather closely. The steam market is
stronger. Fifty cents is now rock l)ottom on
screenings and in Chicago the price ranges up
to sixty cents, while in the country sixty cents
is the minimum, with higher prices obtaining.
Prices up to Thursday were :
F. O. B.
Franklin County — Chicago.
bump . $2.80
Fgg . 2.80
No. 1 nut . 2.80
Np. 2 nut . 2.45
Mine run . 2.15@2.20
2-inch screenings . 1.55@1.65
F. n. B.
Mines.
$1.75
1.75
1.75
1.40
1.10@1.15
.50@ .60
The western coals are firm not so much so on
account of current buying as on account of
prospects. For example. Saline county operators
had a good demand for domestic coal, but that
has eased off. The smaller production of lump
has lessened the production of fine coal. That,
with a better demand, has strengthened that
market to a minimum of fifty cents. The situa¬
tion is also improved by prospects of labor
trouble next spring as some of the buyers are
already making inquiry for storage coal. Lately
some of the producers have refused to contract
at seventy-five cents a ton for fine coal until
the first of next April. The Saline county mar¬
ket is, therefore, firm and prices up to Thurs¬
day were :
F. O. B. F. O. B.
Saline County — • Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Mine run . 2.20 1.15
iScreeniiigs . 1.55J4@l-6) .50@ .60
lJ4-inch lump . 2.35 1.30
The Carterville operators are having a pretty
fair run of orders, but, of course, the domestic
sizes are influenced by the warmer weather.
Leading companies have orders ahead for ten
days; the others are selling their output from
day to day. Prices on these sizes vary from
$1.60 to $1.75 according to the circulars of dif¬
ferent companies. Steam sizes are not moving
nuite so well, being placed with some difficulty.
The car supply has been none too good, some of
the mines being closed down a day last week
because no cars were available. There is n-o sur¬
plus of cars at any time. The prices up to
Thursday were :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.7.5
No. t washed . 2.80 1.75
No. 2 washed . 2.45 1.40
The Clinton. Indiana, field is bothered a little
by large possible production and by pending in¬
creases in output. Still the market on Number
Four vein domestic coal is fairly good at $1.65
to $1.75 while the steam demand is improving
at prices heretofore quoted. Prices up to Thurs¬
day were :
F. o. B. F. q. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.35
No. 5 and 6 mine run . 1.87 1.10
No. 5 and 6 screenings . 1.37®1.42 .60@i .65
Central Illinois coal is quoted at a variable
price. On screenings forty cents is the rock bot¬
tom for the entire field. Better prices have been
obtained in places, these ranging up to fifty cents.
Sangamon county domestic sizes are holding firm
at $1.65 for lump, although the egg at times is
ea.sy. The prices up to Thursday were :
Central Illinois —
F. 0. B.
Chicago.
F. p. B.
Mines.
Lump .
$1.65
Lgg .
1.50@1.65
Nut .
. 2.47
1.65
Mine run .
. 1.87
1.05
Screenings .
. 1.S2
.40
Knox county
coal is
quotably unchanged both
as to price and volume of business. The market
up to Thursday
Knox County —
was :
F. O. B.
Chicago.
F. O. B.
Mines.
Lump .
$1.50
Egg .
1.50
Mine run .
. 1.87
1.05
Screenings .
. 1.52
.65
Anthracite coal has been a little easier within
the last four or five days. October started with
a rush, but the warm weather eased off buying.
It is a weather market as is indicated by the
fact that recently there was quite a heavy ac¬
cumulation of coal in the east which was cleaned
up in thirty-six hours when freezing weather
came. The present lull is due to the weather.
Smokeless operators are having about a fifty
per cent car supply. With a fair run of orders
in the east, they haven’t much coal for western
delivery. This dovetails into a western situation
where the demand is easy because of the weather.
Supply and demand are about at a balance with
prices firm at circular of $1.40 for mine run and
becoming firm on lump and egg at $2.25 although
some coal is still sold at $2. The prices up to
Thursday were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 4.05@4.30 2.00@2.25
Major producers in Somerset county are both¬
ered by a car shortage. The railroads talk about
a fifty per cent supply, but lately have been giving
only twenty-five. Some producers are out of
the market and those that are still selling coal,
are holding for $1.40 for mine run and $2.25 for
lump. The prices up to Thursday were :
F. O. B. F. p. B.
Somerset County — Chicago. Mines.
Mine run . $3.40 $1.40
I-ump and egg . $4.05@4.30 $2. 00@2. 25
The Hocking market is just a little easier this
week because of the weather. However there has
been no free coal on band and prices remain firm
at from $1.60 to $1.75. The prices up to Thurs¬
day were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic Jump . $3.25@3.40 $1.60@1.75
The splint coal situation is in the main un¬
changed from what it has been. That is, some
dock coal has been selling at $1.25, but shipments
direct by all-rail are commanding from $1.50 to
$1.60, the latter in box cars. The priees up to
Thursday were :
F. O. B. F. O. B.
i4ana\vha — Chicago. Mines.
1 '4 -inch lump . $3.15@3.40 $1.25@1.50
The eastern Kentucky situation was weakened
a little l)y the warm weather hut, in the main,
the prices are stronger. The minimum price is
$1.75 and the maximum price is $2.25 for block
and lump combined. Tbe prices up to Thursday
were :
F. O. B. F. O. n
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.65@4.15 $1.75@2.25
Egg . 3.25@3.75 1.35@1.85
The coke market has been a trifle easier due
to the weather which influences, of course, only
the domestic sizes. Furnace and foundry coke
are still strong. Especially in foundry coke the
demand is improving. Prices up to Thursday
were :
F. O. B.
Coke — Chicago.
Connellsville . $4.85 (3i .5.00
By-product, foundry . 4.fln@5.10
By-product, egg and stove . 4.6.'>(®4.7.5
By-product, nut . 4.65@4.75
(las house . 3.90@4,OO
No. 17]
THE BLACK I>IAMONl>
339
Pittsburgh Trade.
Most Operators Are Sold Up Until the
End of the Year — Coke Prices Are
Firm and Rising.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., October 20, 1015.
Operators are in many cases sold up to ca¬
pacity for the current year, and show little dis¬
position to book heavily for extended forward
shipment, as indications are that consumption
for the first half of next year will excel all
previous records, and as indications also point
to much higher prices, the producers, who prac¬
tically control the situation, are willing to await
developments. In fact, “await developments” is
about all they can do, for all are working to the
limit of car and labor capacity, and did not the
one offset the other there would be more trouble
than at present in delivery. As it is, the car
shortage enables the operator to handle the labor
situation.
Lake shipments are being rushed to the limit,
and the immense demand on contracts by local
manufacturing plants is keeping the trade taxed
to capacity. It is said that war orders from
Europe are swamping Pittsburgh manufacturers.
Not only this, but the quotations accepted by
the agents of the belligerent powers are forcing
the prices of materials to a record figure for
Pittsburgh patrons of domestic industries, and
the demand, strengthens the coal market to the
extent that quotations are only made from day
to day. If quotable at all the following might
be fairly representative of the market :
Slack, f. 0. b. mines . $1.00@1.10
Mine run of various grades . 1.20@1.40
Three-quarter, screened . 1.30@1.50
Five-quarter, screened . 1.40@1.60
Slack is still the important factor, and very
scarce. Buyers that turned down eighty cent
slack contracts two and three months ago are
glad to pay $1 today, but fail to find their
requirements.
The whole question today seems to be not
orders, but how to fill them, every producer be¬
ing in the same boat as to cars and labor, and
the demand calling for the limit of productive
capacity.
The Pennsylvania Railroad is reported to be
storing 200,000 tons of coal at Altoona, as well
as large quantities at other points in anticipa¬
tion of contingencies, when the working condi¬
tion agreement expires next spring. Some of
the coal is being delivered by Pittsburgh opera¬
tors from mines in Westmoreland and other
counties east of Pittsburgh.
The financial troubles of J. V. Thompson, the
Uniontown banker and coal operator, do not
seem to be ending as smoothly as it was hoped.
The Supreme Court has decided against Judge
Van Swearingen of the Fayette County Court on
petition of Wm. Funk, a creditor, and ordered
Judge Van Swearingen to hand down his de¬
cisions at once instead of waiting until IMarch
14, 1916. Last Friday Judge Van Swearingen
made answer to ,the petition saying that he had
withheld his decisions at the request of prac¬
tically every attorney representing creditors of
Thompson, who believed that the handing down
of decisions at this time would work detriment
to the creditors. The court had said he would
hand down his decisions March 14, 1916. Mr.
Thompson has been confident he could get mat¬
ters adjusted during November, and public
opinion seems to be with him, but this action
of the supreme court will more than likely make
new complications detrimental to his own as well
as the interests of many of the creditors.
Both furnace and foundry coke have strength¬
ened materially the past week, and considerable
large inquiry has been made. One firm quoted
on blocks aggregating near 100,000 tons furnace
coke monthly for the first half, and the price
held to $2.35 or over, largely on the sliding
scale basis.
One block of 30,000 tons monthly at another
point was closed at approximately $2.35 for the
first half, and one of 15,000 between that figure
and $2.40, while a third of 15,000 tons was turned
down on account of price. Spot demand is be¬
ing met today at $2 to $2.25 and some are asking
as high as $2.40 on best grades. It is stated that
foundry is bringing $2.60 and $2.65 with $3 in
sight in the near future. The coming holidays
with their accompanying annoyances to the pro¬
ducer, are already having an effect in a labor
way, as shortages are sure to develop and failure
to deliver on contract increases the spot demand.
and stiffens the spot price, and some coke is
being stored to meet this expected demand. It
is almost a foregone conclusion too, in the coal
trade, that increased wages will have to be met,
April 1st, when working agreements are re¬
newed, and producers here are carefully guard¬
ing themselves against the future by making no
definite prices for forward delivery, one opera¬
tor saying that he would quote no figures, suffi¬
cient unto the day, being the troubles thereof.
Pittsburgh Personals.
R. S. Richardson of the Richardson Coal Min¬
ing Company is spending a week in the West
Virginia mining region.
Mr. Theiss, of the Theiss-Bygate Coal & Coke
Company, who, with his son, has been spending
some weeks in Canada, is at his office in the
Oliver building again this week.
S. C. Gailey, vice-president of the Pittsburgh
Coal Company, who has been at New Orleans
for some weeks looking after the salvage of
coal that was sunk during the late storm there,
is expected home this week, the results of his
trip proving quite satisfactory.
J. K. Barbour,. sales manager coal department
of the G. B. Bassett Company, spent part of
this week in West Virginia in the interests of his
company.
N. P. Hyndman of the Washington Coal &
Coke Company of Dawson, Pa., whose offices
are in the First National Bank building, this
city, is making an extended visit east by way
of recreation.
Nearby News Items.
.\n order for a million tons of soft coal placed
at DuBois by the Erie Railroad, has caused
extra crews to be added and has started a busi¬
ness boom.
John Harding, identified with the Connellsville
coke industry for a number of years, has as¬
sumed the superintendency of the Garwood plant
of the Aetna Coal & Coke Company. He suc¬
ceeds C. L. Patterson.
The Republic Iron & Steel Company will com¬
plete a new battery of seventy-five liy-product
coke ovens within the next thirty days. The
additions will give the company 143 ovens, con¬
tracts for which were awarded the H. Koppers
Company of Pittsburgh.
Plans for the erection of 400 new coke ovens
for the Allicia works of the W. Harry Brown
Company at Charleroi, Pa., are drawn and are
about to be put into effect. Work on the new
ovens, it is expected, will commence ne.xt month.
The Big Supply Company, one of the John H.
Jones’ interests, has this month paid twenty per
cent of its indebtedness, which is in addition to
thirty per cent paid last November, or a total
of fifty per cent on its indebtedness from the
profits under the receivership. One of the other
companies, the White Rock Supply Company,
this week paid 1214 cent on its indebtedness.
One of the most valuable coal tracts in Somer¬
set county, known as the George Reiman tract
and located in Jenner township, has been sold to
the United Coal Company, with operations at
Jerome. The Reiman tract contains 128 acres
of the best kind of coal. The Jerome field of
the Lhiited Coal Company joins the new tract
purchased by that company.
Large payments on Greene county coal acre¬
age were made in Wanesburg, by the Cleveland
Cliffs Iron Company, of Cleveland, Ohio, which
is the owner of an extensive block of coal land
in Jefferson and Morgan townships, purchased
from J. V. Thompson, some time ago. Three
mortgages were satisfied, $90,000 being paid to
Mrs. Mary Grimes Hawkins of Jefferson; $12,000
to Sarah E. McClenathan and Rex. Moredock of
Jefferson, and a mortgage of $235,000 payable
to J. V. Thompson and several associates of
Uniontown.
.'\t an annual meeting of the stockholders of
the Fink Coal & Coke Company, directors were
chosen for the coming year and officers of the
board were elected. The concern is a holding
/ company, with a good sized acreage in the Con¬
nellsville district. Directors for the ensuing year
are N. A. Rist, Robert McBurney, J. C. Moore,
C. L. V. Bute, David Patterson, David Junk,
S. W. Dunn and J. M. Core. N. A. Rist was
chosen president of the board, with C. L. V.
Bute, vice-president ; Robert McBurney, secre¬
tary ; and J. M. Core, treasurer. Messrs. Rist
and Bute were appointed auditors.
Duluth Trade.
Duluth, AIinn., October 21— {Special Cor¬
respondence.) — Shipments of coal from the head
of the lakes to the territory tributary to this
distributing point, are showing greater gains this
year, according to the monthly figures of the
Western Weighing and Inspection bureau, than
■those of last year developed. For instance, the
coal shipments to the northwest during Septem¬
ber of this year showed an increase over the
shipments made in August of 6,637 cars, as
against an increase of 3,998 cars a year ago.
.■\lso the shipments in September, 1915, were 365
cars more than those of September, 1914, and
678 cars more than in September, 1913.
As a matter of fact, the inquiry for coal is
much stronger than it has been in two years
previous, and it is expected that the total ship¬
ment this fall will rank well with the largest falls
of several years when the totals are summed up.
Every indication is that way just now. The coal
dock managers say that the demand bids fair to
be a record-breaker, to judge by the orders being
received so early in the fall, and by what the
traveling salesmen have to say about business
prospects.
Car shipments this year and last in the month
of September were :
191.5 . 24.712
1914 . 24.347
Increase . 365
Car shipments for the year to September 30,
with comparative figures for last year :
1915 . 166,091
1914 . 152,910
Increase . 13,181
Shipments figured in tons, using as a basis
thirty-two tons to a car, for the year up to
September 30, together with shipnients of an
equal period last year :
1915 . 5,034,912
1914 . • . 4,486,720
Increase . 548,192
up to September 30, according to the figures
just issued for the year today, and for the last
two months in particular, by the United States
engineer’s office here, the receipts of soft coal
are 1,296,581 tons less than in the similar period
last year, and 68,992 tons more of hard coal have
been received. The total shortage, by comparison
with last year, is 1,227,589 tons.
Hard coal is being shipped in larger quantities
than last year — even more so since the first of
the month — to offset any shortage that may oc¬
cur in case of a strike at the mines. It is claimed
that there is pretty nearly enough soft coal at
the head of the lakes to fill the wants of the
northwest until next spring, and that chief at¬
tention will be paid to the shipping up the lakes
of anthracite.
Receipts up to the end of September this year
and last were as follows :
Tons, Tons, Tons,
Soft. Hard. Total.
1915 . 4.742,483 1.149,317 5.891,800
1914 6.039,064 1.080,325 7,109,389
Difference . -(-1,296,581 — 68,992 —1,227,589
Receipts of the various classifications of bi¬
tuminous coal to September 30, of last year
and this, follow :
Voughioglieny
Hocking ....
Pocahontas .
Splint .
Cannel .
.Smithing . . .
Fast Ohio . .
Tennessee . .
Tons. Tons,
1914. 1915.
4.163,423 2,809,857
244,873 130,108
574,128 624,93.s
953,150 881,508
13,763 76,333
27,801 12,516
01,917 202,156
. 5,067
Coal companies that make a specialty of bri-
(piets reported an increased demand for them
this fall, and claim that shipments have started
early. A better quality of briquets is claimed to
be manufactured this year than before and it
is expected that the trade in them will approach
more to a standard than in the past.
The coal dock of the Duluth, Missabc &■ North¬
ern road, a subsidiary company of the United
States Steel Corporation, is receiving heavily
just now, and for the last half of September
and the first half of the current month an aver¬
age of about a boat a day has been unloaded
there. This coal will be used mostly by the
new steel plant of the Minnesota Steel Company,
which will begin activities on November 10th.
This plant will, thereafter, figure largely in the
matter of coal recei|)ts at this point and in coal
consumption. I'his plant, which has taken sev¬
eral years to i)uild, now represents an investment
of approximately $20,0()0,0()0, and when fully
completed will represent about $5,000,()00 more.
340
THE BLACK DIAMOND
[October 23
Cincinnati Trade.
Because Labor and Cars Are Scarce, the
Market Has a Good Tone,
With Prices Rising.
Cincinnati, Ohio, October 21. — (Special Cor--
rcspondence.) — The situation is tightening for
almost ever}’ grade of coal. Prices are advanc¬
ing and splint, nut and slack are approaching a
premium. Mine run is advancing in value. The
only grade now dragging is large block from
West Virginia. This is probably due to the
uncertainties of the weather which for one or
two days is tinged with frost and then turns
warm. Demand is growing largely in both do¬
mestic and steam coals and contract making is
not a hard proposition.
The car supply is more “spotted” than last
week. That is, some of the smaller operations
with smaller needs are receiving practically from
a two-thirds to a full supply. Large operations
in most instances are receiving half to one-third
supply. One big company which requires 200
and 250 cars weekly received sixty-seven cars
last week and scarcely any more this week. This
has thrown the company back in its contract
delivery.
The labor situation is aggravated. Efforts to
get additional labor by advertising and other
methods are proving unavailing.
Kentucky coal for the most part is sold up in
every size, but a few operations have some of
one size, or another, to place on the spot market.
West Virginia production is still very large and
would embarrass the market more, could it be
moved here. Car and labor shortage is curtail¬
ing production and thus relieving the market of
part of its unwelcome load. Railroad rules are
aiding also in the matter, especially in the rule
relating to “no bill” cars, empties being refused
on “no bill” tracks. In the smokeless fields all
is serene, as a general thing. Domestic demand
is absorbing the larger sizes and steam demand
is gradually widening and developing more and
more favorably.
Cincinnati Trade Briefs.
Mrs. Krehe, wife of Frank Krehe, a well
known coal man of St. Bernard, a suburb of
Cincinnati, was buried Monday morning. Cin¬
cinnati coal men extended their sympathy.
Mary E. Vorheis of Cincinnati, and Augustus
M. Damarin and Harry H. Scudder of Ports¬
mouth, Ohio, have leased to the Puritan Brick
Company of Hamden, Ohio, 900 acres of coal
land near Hamden at $S00 per annum for six
years, with a privilege of purchase at $36,000 at
any time during the life of the lease. It is
understood, however, that the lessee will soon
begin development of the coal prospect.
The Consolidation Coal Company is sinking
four new five hundred foot shafts into its coal
deposits at Helen’s Run, W. Va., and it is ex¬
pected that shipment of coal from these workings
will begin about the first of the year, perhaps by
December 15. This tonnage will be developed
and distributed over the eight-mile extension of
the Western Maryland Railway extended by spe¬
cial agreement with the Baltimore & Ohio Rail¬
way Company, and the coal company, and it is
estimated to mean eventually an additional ton¬
nage for the Western Maryland of about 4,000,000
tons in the Fairmont re.gion and 4,000,000 tons
additional in the Jenner field in Pennsylvania.
The Consolidation Company recently negotiated a
note financing which brought in $7,000,000 to be
used in extension and development work, the
notes to be paid in two years.
At the annual meeting of the Kanawha Coal
Operators’ Association last week in Cincinnati,
the following officers were elected to serve the
association the ensuing year : President, E. O.
Dana ; vice-president, T. J. Hatfield, Covington,
Ky. ; secretary, David T. Evans ; executive com¬
mittee, Frank O. Harris, West Virginia, chair¬
man ; Edward Schonebaum ; Michael Gallagher,
Cleveland; John H. Winder, Columbus; Frank
B. Stewart; G. H. Powell, West Virginia; J. W;
Dawson, West Virginia. Routine matters were
the principal business transacted. A discussion
of the railroad rate situation resulted in the
adoption of a resolution to secure counsel to
co-operate with the counsel of other organiza¬
tions and with the state of West Virginia and
of several of the cities and city organizations,
in the state, in a fight to defeat the rate propo¬
sition before the Interstate Commerce Commis¬
sion.
Earl Henry, chief inspector of the Department
of Mines of West Virginia, reports this week
that he has visited the mining regions in the
northern part of the state and finds that it is
impossible for the mine operators to find a suffi¬
cient number of men to work the mines to the
capacity demanded by the orders, or even to the
capacity required by the meager car supply. He
also said that unless the labor supply increases
the coal mining industry would not be the only
industry to suffer from a decreased production.
.As a result mines are advertising for miners
and helpers in the state. It is reported at Greek
headquarters here that about 8,000 Greeks, min¬
ers and others, in this district are in readiness
for the call to arms should the Greek nation
enter the European war, which seems a foregone
conclusion. Several thousand Italians, mostly
miners, have left the West Virginia fields for
the front. Americans and negroes take to min¬
ing only when necessity compels.
Detroit Trade.
Detroit, Mich., October 21. — (Special Corre¬
spondence.') — Interest of coal buyers, both in the
steam and domestic product, appears to be in¬
creasing steadily, though the development of the
better situation continues of rather slow growth.
Orders and inquiries for steam coal are com¬
ing to shippers in a way that indicates quite a
general interest among consumers not only in
Detroit but in the interior towns of the state
which usually obtain their supply through De¬
troit offices. The size of the orders continues
small in most instances, giving indication that
the coal users are making little or no effort to
get a reserve stock.
While the reports of car shortage that are be¬
ing received from various mining districts of
Ohio and W’est Virginia have supplied shippers
with material for much advice against the risk
of continuing the day-to-day system of buying,
the consumers seem not to have been strongly
influenced toward stocking up. The fact that
a large proportion of manufacturing establish^
ments have only limited facilities for storing
coal is an explanation of the attitude of some,
but in the case of others, who are able, to take
care of a surplus supply, the occasion for hold¬
ing off is less apparent.
The fine coals are in strongest demand and
some of the shippers report that it is becoming
less easy to obtain sufficient supplv of fine coal to
fill orders of their customers. The situation in
this respect is not of a nature to cause special
anxiety, however, as the stock can be had.
Weather conditions have continued warmer
than is conducive to activity in the domestic
coal trade, but a slight improvement is said to
he noticeable which, with any extended interval
of low temperature, undoubtedly would work
into a much more active demand.
With shipments of consignment coal cintinu-
ing, but not in excessive quantities, most of this
stock is being sold at prices not materially lower
than are given on mine shipment orders. There
are occasional sales at lower prices, but these
transactions are limited practically altogether to
lump and egg sizes. On direct shipment busi¬
ness prices are unchanged.
Shortage of cars in the anthracite districts
is causing delays in delivery of orders. While
retail yards are steadily filling orders the stocks
which they put in during the summer have not
been depleted to a point where the dealers are
ready to renew them and the volume of busi¬
ness coming to shippers is light.
In the lake trade there seems to be a larger
movement of anthracite than during the latter
part of September, but shipments of bituminous
coal show little increase. Reports from the head
of the lakes indicate the supply of soft coal al¬
ready on hand is likely to be sufficient for the
winter.
Prices in the local
market on mine
shipment
orders are as follows
F. O. B.
F. 0. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
. $1.00
$2.40
Mine run .
2.30
Slack .
. 60® .75
2.00@2.15
West Virginia Splint —
Four-inch lump .
1.90@2.15
Two-inch lump .
2.15@2.30
Three-quarter .
2.50
Mine run .
2.30
Nut, pea and slack .
1.95@3.05
Smokeless —
Lump and egg .
3.85
Nut .
3.35
Slack .
Open
Mine run .
3.00
Kentucky Splint —
Lump .
Egg .
Nut, pea and slack .
Fairmount —
Three-quarter steam lump
Mine run .
Slack .
Hocking Valley —
•Shaker three-inch lump
Shaker egg and nut....
Domestic lump .
Three-quarter lump .
Mine run .
Nut, pea and slack .
Pittsburgh No. 8 —
Three-quarter lump ....
Mine run .
Slack .
Jackson Hill —
Domestic lump .
Cambridge —
Three-quarter lump .
Mine run .
Pomeroy —
Two and three-inch lump
1.60@1.75
1.25@1.40
.66
.85® .95
.70® .80
Open
1.60
1.15
1.50
1.35
1.00®1.10
Open
1.05
.95
Open
2.50
1.20
1.10
1.60
1.35
Open
3.00®3.16
2.65@2.80
2.05
2.25®2.36
2.10®2.20
Open
2.75
2.30
2.65
2.50
2.15®2.25
Open
2.20
2.10
Open
8.65
2.36
2.25
2.75
2.50
Open
Birmingham Trade.
Birmingham, Ala., October 21. — (Special Cor¬
respondence.) — All of the large coal producing
companies are mining practically at full time.
The smaller companies are getting in some good
orders.
Steam coal trade is fair, and a good tonnage
is going towards gulf ports. The DeBardeleben
Coal Company sent one thousand tons down the
river the past week, while the Pratt Consolidated
Coal Company and the Tennessee Company, are
making some fairly good shipments.
Domestic trade is good with most of the
oroducing companies and the retail trade is
brisk.
Blacksmith coal is fair and few orders are
coming from distant points.
Demand for coking coal is the most pro¬
nounced. The very large demand for iron has
caused the increase. Coke ovens which have
not been in use for several years are now being
repaired to fire up. While four benzol plants
have been erected within the last six months,
they can not supply the demand for the coke
which is needed for iron making, so the old bee¬
hives which were practically laid aside are now
being made ready for use.
The production of coal is larger than for eigh¬
teen months. The volume of production has so
materially increased it leads the state mine in¬
spector to look for a larger production for 1915,
than for 1914. He states that the coal produc¬
tion in Alabama for 1915 may go above 16,000,000
tons.
A report has been current that inducements
may present themselves for the construction
of another big by-product coke oven plant in the
Birmingham district on which between $1,000,-
000 and $.3,000,000 will be expended, includ¬
ing additional recovery plants. Developments
have not proceeded far enough to warrant any
extended notice thereof, but a very large deal
is brewing, which may be made public soon.
Prices for October are :
F. p. B. F. p. B.
Bibb Countv Domestic Coal — Mines. Birminftbam.
Red ash Cahaba lump . $3.00 $3.50
Red ash Cahaba lump . 2.75 3.10
Red Ash steam size . 1.20®1.35 Frt. rate 30c
Jefferson County —
Fancy steam Pratt .
Run of mine Pratt .
Mary Lee lump .
Black Creek —
Fancy steam lump .
Washed nut .
Washed steam .
Mine run .
Jefferson Steam Coal —
Mine run .
1.75 2.20
1.20@1.25 1.45®1.60
1.40®1.50 1.80@1.90
1.75 2.05
1.76 2.05
1.35®1.60 Frt. rate 30e
1.35@1.40 Frt. rate 30c
1.15@1.25 Frt. rate 30c
Walker County Domestic —
Carbon Hill lump . 1.75 2.15
Carbon Hill egg . 1.65 2.05
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
I-ump . 2.00 2.40
Egg . 1.90 2.35
Steam sizes . 1.25®1.35 Frt. rate 40c
Shelby County Domestic Coal — •
Cahaba fancy lump . 3.00 3.30
Cahaba No. 2 lump . 2.75 3.05
Montevallo domestic prices range from $3.00 to $3.25.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
Notes About Birmingham.
Fire, discovered in the Banner mines where
state convicts are worked, caused considerable
excitement Sunday afternoon. Heroic measures
were taken and resulted in the blaze being ex¬
tinguished without much damage to the mines.
No men were in the mines at the time of the
discovery of the fire. About $1,000 damage was
done.
No. 17]
THE BLACK DIAMOND
341
Cleveland Trade.
Cleveland, Ohio, October 31. — (Special Cor¬
respondence.) — Considerable weakness has been
shown in the coal market here during the past
week. While prices were not affected to any
extent, the demand dropped off and there was
difficulty in moving the stocks on hand. Pro¬
ducers and jobbers have held their coal rather
than accept prices that meant a loss and this
served to prevent any demoralization whatever.
Lake coal is moving slowly and only contract
boats will accept cargoes in the face of the rates
that are paid for grain. Other boats demand
rates that are prohibitive. Just what will_ result
from this condition is a problem, but it is pos¬
sible that a sufficient amount of coal to take care
of orders will be taken up before the end of the
season.
Some producers are offering a premium for
boats that will take cargoes for storage at upper
lake points. Already some of this business has
been taken and there will probably be more of
it later in the season. There are a number of
advantages connected with the storage of coal
in boats both to the shippers and the boat owners.
It is said that points at the head of the lakes
are short fully 1,000,000 tons in receipts in
comparison with the amount of coal shipped last
year and the year before. However, most of
the docks had large amounts of coal left over
at the opening of the season and it is probable
that this will offset any loss in shipment this
season.
Canadian ports, such as Port Arthur and Fort
William, are taking much less coal this season
than last, because of the surplus from last sea¬
son’s shipments and the uncertain conditions in
that country at the present time. This, of course,
affects the business done in the fields usually
supplying those markets.
Railroad consumption has increased somewhat
within the past few weeks, but perhaps not
as much as might be expected. Improvements
in locomotive furnaces and the manner of firing
has resulted in securing greater efficiency from
the fuel and this, of course, means a smaller
amount per engine when running regularly.
There has been no change in the car situation.
Many mines are compelled to run short time, be¬
cause they cannot secure the cars necessary to
handle their output. While this results in strength¬
ening prices, it cuts the supply short and cur¬
tails the amount of trading usually done.
Mines in the No. 8 district are running on
short time and are able to ship only as cars are
supplied. Prices, however, are about the same
as last week on all sizes.
F. o. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.05@1.10 $1.95@2.00
Run of mine . .95 1.85
Slack . 4 . .85 1.75
No great amount of Pittsburgh slack has been
handled here the past week and other sizes were
not active.
F. O. B. F. O. B.
Pittsburgh District — Mines. Cleveland.
Slack . $0.70@0.80 $1.70@1.80
Youghiogheny slack just about kept pace with
the Pittsburgh product and was quoted in this
market at ninety cents at the mines.
Mild weather had its effect on domestic busi¬
ness and for this reason Pocahontas and other
smokeless coals were rather a drug on the mar¬
ket. This condition is only temporary, however,
and did not affect the prices. A little cold
weather will bring a heavy demand, it is believed,
as the stocks are not large.
Smokeless —
Lump .
Egg . . .
Run of mine. .
F. O. B. F. O. B.
Mines. Cleveland.
$2.25 $3.70
2.25 3.70
1.45 2.90
Massillon mines are from two to three weeks
behind with their orders, it is said, and retailers
are anxious for deliveries.
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 2.50 3.20
Slack . .90 1.60
Cambridge coal, all sizes, showed considerable
strength and there was an advance of at least
five cents a ton in the prices of larger sizes.
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Three-quarters . $1.10 $2.00
Run of mine . 1.00 1.90
Slack . .85 1.75
Goshen slack sold around last week’s prices,
from $1.60 to $1.65 on track here.
Only a very small amount of Fairmont slack
has reached this market during the past week
and prices ranged from $1.90 to $1.95.
Kentucky 4-inch block remained stationary at
$1.90 to $2, with a freight rate of $1.25.
Cleveland News Notes.
James DeWolf, manager of the Detroit office of
the New Pittsburgh Coal Company, was in this
market early in the week.
A. S. Austin, president of the Kanawha Fuel
Company of Milwaukee, Wis., was in this city
last Friday and Saturday.
O. O. Smith, western representative of the
Bewley-Darst Coal Company, Knoxville, Tenn.,
called on the coal men here Tuesday.
F. A. Prendergast, president of the Baltimore
& Ohio Coal Company of this city, returned last
Saturday evening from a trip to Chicago and
Milwaukee.
Indianapolis Trade.
Indianapolis, Ind., October 21. — (Special Cor¬
respondence.) — The coal trade is more satisfac¬
tory than it was a month ago. The demand for
steam coal is improving right along. The reports
from the manufacturing centers 'in Indiana are
of a more encouraging nature. There is a great
deal more activity among industrial concerns
than there was a month or two ago.
One of the encouraging signs of the times
here was the posting of an order this week by
the Pennsylvania Railroad Company authorizing
its local officials to employ all the help needed
to operate the car repair shops to capacity. There
is an apparent improvement of the business of
the railroads in Indiana which means that the
lines of industry that form a large part of
the source of demand for steam coal are going
to enjoy a season of renewed prosperity. The
financial situation in Indiana is as satisfactory as
it has been for several months — or years for
that matter. There is an abundance of money
in the banks for legitimate enterprise. The
farmers have harvested a big crop and prices
are high for farm products. Under the cir¬
cumstances it would appear reasonable to predict
that there will be a great deal more money in
Indiana than usual this winter. The general
business outlook is improving and as a matter
of course it ought to help the coal operators
and dealers. The movement of steam coal is
increasing and while prices are not increasing
they are steady.
Domestic coal is strong. The retailers are en¬
joying a nice run of orders. Screenings are
fairly strong. The demand is still slow for nut
and inch and a quarter steam coal. The move¬
ment of coal into Indiana from Pennsylvania and
West Virginia is about normal for October. The
demqnd for anthracite and other smokeless coal
is strong here and at other large cities in the
state. The following prices are being quoted by
the wholesalers ;
Indiana —
Mine run, No. 4 .
Mine run Nos. 5 and 6....
Nut .
Egg .
1^-inch steam lump .
No. 4 screenings .
Nos. 5 and 6 screenings. . .
214-inch domestic No. 4...
No. 4 domestic . .
Nos. 6 and 6 domestic....
Brazil block domestic .
No. 1 washed coal. . . .
No. 2 washed coal . ..
Southern Indiana Field —
No. 5 mine run .
Domestic lump .
F. 0. B.
F. O. B.
Mines.
Indianapolis.
_ $t.l0@1.20
$1.60@1.60
1.55@1.65
_ 1.20@1.30
1.70@1.80
_ 1.30@1.40
l.S0@1.90
_ 1.25@1.35
1.75@1.85
. 70@ .75
1.20@1.25
. 55@ .65
1.05@1.15
_ I.50@1.55
2.00@2.05
_ 1.60@1.65
3.10@2.15
1.90@2.10
2.75@2.50
_ 1.75
2.25
_ 1.65
2.15
. 1 0.5 iS) 1 I n
_ 1.40@1.50 .
The retailers are quoting the following prices
here: Linton No. 4 lump, forked, $3.25; Indiana
lump, forked, $3.00; Indiana lump and egg,
screened, $2.75; Kanawha lump, forked, $4.25;
Ohio Hocking lump, forked, $4.25 ; Ohio Hock¬
ing washed egg, $4.50 ; Kentucky, lump, $4.50 ;
Ohio Jackson lump, forked, $5.00; Blosburg,
smithing, $5.50 ; Cannel lump, $6.00 ; Pocahontas,
forked lump, $6.00; Pocahontas, shoveled lump,
$5.50 ; Pocahontas, mine run, $4.50 ; Pocahontas,
nut and slack, $3.75; Anthracite, chestnut, $8.25;
Anthracite, stove and egg, $8.00; Anthracite,
grate, $7.75 ; Connellsville coke, $6.00 ; Indian-
ajiolis by-product coke (all sizes), $6.00.
Extra Delivery Charges — Bags, 50c a ton extra,
ground floor or dumped in cellar. Bags, 75c a
ton extra, carried into cellar. Charge for chute
or wheelbarrows, 25c a ton. Coke, bags, 00c,
bags in cellar 80c.
The Chamber of Commerce at Columbus, Ind.,
has filed a petition with the public service com¬
mission for a revision in coal rates from the
Indiana field alleging that, the Columbus manu¬
facturers are discriminated against by the rail¬
roads.
Twin Cities Trade.
Minneapolis and St. Paul, October 21. — (Spe-
cial Correspondence.) — Fears are being enter¬
tained on the part of the managers of the large
docks at Duluth and Superior that the supply
of soft coal will be insufficient to meet the de¬
mand if there is a cold hard winter in the north¬
west. The vessel situation to which reference
has been made in this column continues bad.
Some of the dock managers are of the opinion
that it is slightly worse and do not anticipate
there will be any improvement during the present
season of navigation.
This is one feature that is causing uneasiness.
Another exists in connection with the movement
of coal. The trade throughout the northwest
has taken in much less coal than usual this year.
Dealers’ yards were poorly supplied when the
first cold weather came. Now there is again a
lull in business on account of Indian summer,
and movement is very light. The docks are full
of coal, but, due to the fact that stocks in
dealers’ yards and consumers’ hands are so light,
the business, when it does come again, will come
with a rush, and the deficiency in the stocks re¬
ferred to will have to be made up.
Another factor of importance is the delay in
moving the crops. Threshing has been delayed
from three to four weeks, owing to the wet
weather. Now there is a scarcity of labor.
Farmers who have threshed are holding their
grain. This crop must move sometime, and as
it is a tremendous one, grave fears are enter¬
tained when the movement commences, the rail¬
roads will be badly congested. Moreover, if they
could move part of the crop now they would
take coal off the docks and this would make a
place where late shipments could be taken care
of. As it is, the railroads are not taking all
their contract coal for engine use, and the docks
are obliged to carry this excess tonnage, which
will prevent them from increasing their tonnage.
Altogether, if the winter is cold, it is evident
there is some basis for apprehension on the part
of dock companies that they will not have suffi¬
cient tonnage to meet their requirements.
In the all-rail Indiana and Illinois trade prices
are steady at the price basis quoted in this
column. Demand, however, has shown a slacken¬
ing tendency on account of the weather. Dealers
who were in a hurry for coal a week or ten
days ago have forgotten the situation that de¬
veloped at that time. If the weather should
suddenly turn cold again there would be the
same rush of orders for all descripions of fuel.
Current circular prices and quotations on all
grades of coal sold in the Twin Cities are as
follows :
ANTHRACITE.
Grate .
Egg .
Stove .
F. O. B.
Duluth
and
Superior
F. O. B.
Minneapolis
and
St. Paul
$7.80
8.05
8.05
8.30
6.70
6.20
Nut .
Pea .
Buckwheat .
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.40
$4.26@4.36
Spimt, dock run .
3.10
4.06
Hocking, screened lump and stove
3.30@3.40
4.26@4.36
Hocking, dock run .
3.00
3.96
Youghiogneny, gas, lump and stove
3.30@3.40
4.26@4.36
Youghiogheny, gas, dock run .
3.10
4.06
Pittsburgh vein, lump .
3.30@3.40
4.26@4.36
Pittsburgh vein, dock run .
Poc.ihontis, screened lump or egg
Pocahontas, screened lump and
3.00
3.96
4.75
5.71
egg mixed .
4.50
5.46
Pocahontas, mine run .
3.25
4.21
Cannel, lump .
5.25
6.21
Smithing, bulk .
4.25
5.21
Smithing, in 100-lb. sacks .
6.00
6.96
Briquets, anthracite .
5.00
5.96
Briquets, smokeless .
5.00
5.96
In the Illinois trade the
range of
prices on
southern Illinois product on the various sizes is
as follows :
Southern Illinois chunks . $1.65@1.75 $3.95@4.05
Southern Illinois egg . 1.65@1.75 3.95@4.05
Southern Illinois No. 1 nut . 1.65@1.75 3.95@4.05
Southern Illinois No. 2 nut . I.40@1.50 3.70@3.80
Southern Illinois No. 3 nut . 1.10@1.25 3.40@3.55
Southern Illinois run of mine... t.l5@1.25 3.45@3.55
Southern Illinois 2-in. screenings .60@ .70 3.90@4.00
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
Collections are showing a decided improve¬
ment. Banks were prepared for a heavy crop
movement and when it did not materialize they
diverted funds in reserve for that purpose into
the regular channels of trade.
342
THE BEA( K DIAMOND
[October 23
New York Trade.
Mild Weather Does Not Deter Anthra¬
cite — Bituminous Prices
Advance Slightly.
Office of The Black, Diamond,
New York, October 21.
The anthracite trade this week is in a very
healthy state, although the very mild weather
prevailing generally throughout the anthracite
consuming territory has materially restricted
household consumption. Notwithstanding the
let-up in domestic buying, retailers have been
buying heavily, and the wholesale trade is active
in almost every direction.
The better demand which started up sever¬
al weeks ago, has enabled the mines to work
on full time. This does not mean that they
are getting out a maximum capacity, as car
shortage has shown up in the regions, and
labo'r is also scarce. Shippers who ship con¬
siderable coal all west in box cars are finding
it difficult to obtain sufficient cars to take
care of their orders. Also there is some de¬
lay in shipments east, due to lack of cars,
especially of the smaller type that many of
the retail dealers require.
Operators do not see any hope of a mate¬
rial increase in production betw'een now and
the first of the year. This means that the
calendar year will end showing a decrease of
approximately 2,500,000 tons, as compared with
last year, if not more. The shortage of pro¬
duction for the first nine months of the year,
as compared with the corresponding months
of 1914, show approximately 2,650.000 tons.
It is now exceptional that one hears of pre¬
pared coal being sold off circular. One or
two odd lots of chestnut were said to have
been sold at New York harbor ports this
week at concessions from the circular, but
these instances are rare. In niost every di¬
rection, individuals are securing full winter
circular prices. Especially is this true in the
all-rail tfade. Some of the individual opera¬
tors are finding this outlet so good that they
are materially reducing their shipments to
tidewater.
The steam size situation shows more
strength from week to week. All of the buck¬
wheats are active, and the bargain hunter has
great difficulty in finding cheap steam coal at
New York harbor ports just now. A great
many large steam contracts around New York
city, especially on city business, are usually
taken on during the summer months at low
prices, when the markets are glutted with un¬
sold coal, and contractors who took business
of this nature face a serious situation
unless
they took precautions
to cover their
needs
on time contract.
New York prices:
Upper
Lower
Ports.
Ports.
Broken .
$5.00
. 5.35
Stove .
5.25
Chestnut .
. 5.60
5.50
Pea .
. 3.55
3.45
Special grades of red ash and other high-
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows;
Egg . $5.05 and up
Stove . 5.20 and uj)
Nut . 5.20 and up
Pea . ^-25 and up
lUick . 2.30 and up
Rice . 2.00 and up
!;arley . 1.75 and up
The Bituminous Situation.
There is more activity in bituminous coal,
and as requirements have grown prices have
increased correspondingly. Contract require¬
ments are much heavier, and as labor is short,
especially in the Pennsylvania regions, and
car supply inadequate on most lines, many of
the principal operators are just about able to
take care of their contract requirements.
Mine prices have stiffened materially. Much
buying is being done by middle houses that
have contracts to take care of, and many of
the small operators are finding these a bet¬
ter source for business than the consumers
direct.
Complaints are also heard that the railroads
are not moving coal as promptly as shippers
would like. The principal bituminous coal¬
carrying roads of the east announce moving
a lot of other business, some of it, especially
the war munitions, is very pressing. In addi¬
tion to the purchase of millions of dollars’
worth of war munitions, a great deal of iron
and steel has been purchased by the warring
countries for export, and the movement of
these heavy materials is beginning to lie felt
by the transportation companies.
Coke business is very active, and some of
the coal companies tliat Iiave coke ovens could
secure a great deal of coke business at this
time if they were in position to obtain the
labor that is required to make it.
Export trade is suffering from a shortage
of vessels. On the other hand, bunker re-
(luirements at all of the Atlantic and Gulf
ports are very heavy at this time, and those
interested in bunkers are finding themselves
very busy,
.\t the New York harbor ports there is not
much free coal oI)tainable. Prices advanced during
the past week, and now $2.55 to $2.60 is given
as the minimum price for the low-grade coals.
Good grades are selling at $2.85 to $2.90, and
choice grades at $3 to $3.25.
Slack coal is in great demand, and seventy-
five cents is about the minimum price one
hears named for it.
The Vessel Situation.
The coastwise vessel situation has not
changed. At the moment there appears to be
ample liottoms to take such coals as are mov¬
ing coastwise.
The off-shore situation is very tense, due to
the very high freight rates that are being of¬
fered for grain and cotton trades. Coal ship¬
pers that transact export business are being
hampered due to their inability to secure ves¬
sels at prices that will enable them to compete
for business.
We quote current rates on freight as fol¬
lows :
From Hampton Roads to Boston, eighty to
ninety cents is about the range: to Portland
and points east of Boston, from ninety cents to
$1. To sound ports, eighty to eighty-five
cents. From Philadelphia to New England
points, about five cents under the Hampton
Roads rates.
From New York to Bridgeport or New
Haven, thirty cents; to New London and
Providence, forty cents; to Fall River and
New Bedford, forty-five cents; to Boston, fif-
ty-five to sixty cents.
Current quotations
on bituminous
coal m
spot lots are:
F. O. B.
F. O. B.
Somerset County —
Harbor.
Mines.
ttest grades .
$1.10
Ordinary .
1.20
Medium grades .
1.15
Cambria County —
Rest Miller vein .
. 3.00
1.45
Medium grades .
. 2.80
1.25
Cheaper grades .
. 2.70
1.15
Clearfield County —
Best grade .
. 3.00
1.35
(Ordinary grades .
. 2.65
1.10
Indiana County —
Best grade .
1.25
Medium grade .
. 2.05
1.10
Maryland —
Georges Creek big vein...
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
1.00
Best gas, f^-inch lumi)....
1.15
Best grade, run of mine. .
. . 8.65
.00
Gas shack .
.75@1.00
New York Trade Briefs.
A. B. Luce of Madeira, Hill & Co., No. 143
Liberty street, visited Schenectady on Mon¬
day.
N. C. Ashcom, Boston manager for B. Ni-
coll & Co., came to New York last week and
participated in a two-day tournament of the
New York Coal Trade Golf Association, held
at Seaview, N. J.
Cecil W. Proctor, manager of the bitumin¬
ous department of the Skeele Coal Company,
No. 90 West street, sailed on Saturday for
Sweden. Mr. Proctor will spend some time in
Sweden, Norway and Denmark, in the inter¬
est of his company.
Crowell & Thurlaw Steamship Company of
Boston announce the launching on Saturday,
October 23 of the new steamship Stephen R.
Jones, that they are having built at the ship¬
yard of the Newport News Shipbuilding &
Dry Dock Company at Newport News, Va.
S. J. Bohannon, New York manager of the
Piedmont & Georges Creek Coal Company,
No. 30 Church street, left last Saturday for
a short vacation of ten days or two weeks
for Newnan, Ga. W. D. Bohannon, his broth¬
er, is taking care of the office until he returns.
A. C. Stickle of the Evans Coal & Coke Com¬
pany, Connellsville, Pa., was in New York
on Tuesday en route home from Bermuda.
Mr. Stickle spent ten days at that resort in
recuperating. He reports the coal and coke
business in the Connellsville region as being
very active.
Quite a number of the Nevv River and Poca¬
hontas coal operators were in New York dur¬
ing the past week. It is said that their confer¬
ence here had largely to do with the West
Virginia freight rate question, which just now
is paramount in the attention of the people
interested in coal in that state.
Long overdue, the British steamship Linda
Fell, which sailed from Philadelphia on Sep¬
tember 20 for Cienfuegos, has been given up
for lost. She was commanded by Captain
Tunwell and was laden with 4,700 tons of coal.
The crew numbered thirty men. There is lit¬
tle doubt that she foundered in the September
hurricane.
The steamer L. V. Stoddard, built on the
Great Lakes for the Atlantic coastwise coal
trade, was recently brought to Neyv York to
undergo extensive structural alterations. It is
reported that the Stoddard is to be cut in two
and lengthened out by the addition of fifty
feet amidships, giving her a capacity of about
5,000 tons, an increase of about twenty-five
per cent.
It is stated in the Johnstown papers that
C. C. Schmucker of Boswell, in Somerset
county has closed a deal by which he trans¬
fers the coal under the George Reiman tract
of 128 acres to the United Coal Company, the
consideration being private. The tract ad¬
joins the Jerome field of the United Coal
Company, and its possession has been desired
for a long time. The figure is said to have
been such a fancy one as to set a record price
for coal in that section of Somerset county.
The common and preferred stock of Burns
Brothers, New York’s leading retail coal con¬
cern, were listed on the New York Stock
Exchange last week. Of the preferred stock
there is $1,820,000 outstanding, while the com¬
mon stock issue amounts to $5,500,000. There
are no bonds or floating indebtedness. It is
stated that the earnings of 1915, amounting
to $820,000, are equivalent to forty-five per
cent on the preferred stock, which pays seven
per cent dividends. The common stock pays
five per cent, and when it was listed on the
curb it was selling at from eighty-one to
eighty-two. It opened on the stock exchange
at ninety-one, and on Tuesday sold up to
ninety-four and one-half. It is stated that the
common stock is now earning at the rate of
twelve per cent.
A new steamship line for coastwise service
has been incorporated under the Delaware
laws, with capital stock of $3,000,000. It is
called the American Merchant Marine Com¬
pany, and it is said it plans ultimately to enter
the South American trade. It is understood
that the management of the new company will
be under the direction of Bowring & Co., ship¬
ping agents in New York, who represent large
English capitalists, who are allied in the new
company with American shipping ^nd financial
interests. The contracts are soon to be placed,
it is reported, for the construction of four
freight steamers of 4,000 tons cargo carrying
capacity each. Among those mentioned as
prospective directors are Lewis L. Clarke,
president of the American Exchange National
Bank of New York; E. W. Bowring, treasurer
of Bowring & Co.; Edward W. Lane, presi¬
dent of the Atlantic National Bank, Jackson¬
ville, Fla., and Lawrence B. Stoddard, vice-
president of Bowring & Co.
The financial editor of the Nev/ York Trib¬
une sums up the car situation as follows: “If
general business has continued to improve in
October as it did in September, there is no
longer such a thing as a surplus of idle cars
on the railroads. There is known to be a
shortage of cars for certain industries, one of
them soft coal mining. A famine of cars
generally is predicted within a month. When
the railroads should have been preparing
against such a centingency they could not af-
fo'd to buy the cars. Credit cost too much.
Now, when they are beginning to buy, they
are in danger of being too late. Time and
again the equipment companies have been
embarrassed in the past by orders coming
from every direction at once. If the orders
come now, the equipment companies as a
whole will be in a worse position to fill them
promptly than they have been for years. They
are too busy making shrapnel and high explo¬
sive shells.”
343
No. 17]
Philadelphia Trade.
Producers Are Retiring From the Market
Because a Car Shortage Cuts Out¬
put — Buyers Unconcerned.
Office of The Black Diamond,
1400 Land Title Building,
Phil.\delphia, October 21.
One of the surprising angles that has been
produced by the car shortage and the general
up-turn to the bituminous coal business here,
has been the apparent indifference of the smaller
consumer to worry one little dog-gone whit. Man
after man, who is dealing direct with the species,
tells that the most ot the one-to-ten-car-a-
week, buyers have a supercilious smile when
they are told that it is hard to get coal. More
than that they rub it in by telling the sales¬
men that it listens like some of the other sales
arguments that they advanced in May and
June. Did they know that there are virtually
no quotations on coal from the Greensburg
territory, that a great many of the operators
in the Somerset held have refused quotations
on spot shipments they might see the thing
in a different light.
The middle houses whose specialty is get¬
ting a coal to ht the needs of a prospect have
been having a deuce of a time landing coal
after landing orders. Cars are short and
the people on whom the weight of this falls
heaviest — the men at the mines — have un¬
usual ideas as to what they should get for
their coal. Quemahoning and Somerset op¬
erators are asking .$1.35 with Miller vein a
nickel to a dime higher. Western Mary¬
land offerings have been around $1.15.
Midweek saw a little loosening of the
stringency in free coal at the Greenwich piers.
About 1,000 tons were offered- for sale with
a range of $1.15 to $1.25 to the jobbers and a
dime more on the ton to consumers. At Fort
Richmond the situation was tightening by a
large amount of the coal there going into
export and heavy bunkerage.
Opinion is divided as to the length of time
that the car situation will have a bearing upon
tbe market. Some of the middle houses are
inclined to believe that as soon as the rail¬
roads withdraw from the stocking market and
have thrown back their cars into the coal
traffic there will be an immediate change.
.Again there is an intimation that the Balti¬
more & Ohio will have about 5,000 cars to
throw into the coal trade as soon as the
movement of ore from the lakes is over. On
the other hand there are those who argue
that all coal concerns are behind in their
orders and their customers will have to be
satisfied with heavier shipments as soon as
cars are free, that the colder weather will
gum things up at terminals and on the lines,
that stocking will have to be started in Janu¬
ary in preparation for strenuous times in
April, and, that car conditions of a month
or two will be worse than at present. As the
fair faker says “you pays your money and
takes your choice.”
Anthracite Situation.
Under the head of Quips and Jests one of
the local papers the other night printed this
“The coal man is begining to look rather
anxiously at the weather bureau.” Some of
the hard coal contingent are of the belief
that this is too serious a matter for any paper
to run in it’s joke column. The weather
has been doing all that it can to imply that
"there aint no such animal” as winter — and
anthracite men, from retailer to operator,
have been suffering accordingly. A few frosty
mornings would be welcomed as notbing else
would.
Pea coal is back to it’s old place, tbe head
of the list so far as demand is concerned.
The independents are doing their best to force
a $2.25 quotation on this size by November
1st. In fact, this is the price that has been
set and held to for any deliveries to be made
after the coming of the next month and pres¬
ent prices range from $2.15 up.
The companies are holding to the set range
of $2 to $2.10 for pea sizes, though it is with
tbe proviso that the quotations are subject
to immediate acceptance. Tbe independents
say that they have hopes that the price will
be raised lyv tbeir bigger competitors.
Stove and chestnut sizes have shown a lit¬
tle better inclination in demand and some of
the late comers have been doing a little stock¬
THE BLACK DIAMOND.
ing of their bins at home. However, most
of the local yards have a capacity stock of
coal on hand, and until this is moved the
general movement is bound to be slow. Price
cutting is still in order in West Philadelphia
and Kensington, as well as most of the sub¬
urbs, but “all the slashing of prices and in¬
ducements that is to be offered in that line
will not do half as much as a stinging cold
week” as one middle man put it.
Philadelphia News Notes.
F. J. Homan of the Skeele Coal Company
of New York, visited the local hard coal trade
on Tuesday.
Superintendent Buchannon of the Oak Ridge
Colliery in the Pottsville district, was one
of the trade visitors of the week.
C. P. Burtner of C. P. Burtner & Co., spent
three days in Central Pennsylvania looking
over the company’s properties in the Punx-
sutawney and Altoona districts.
George Pauli, vice-president of the Com¬
monwealth Fuel Company of Pittsburgh, was
among the trade visitors of the tail end of
last week.
Charles Ten Weeges of the Diamond Coal
and Ice Company of Wilmington, Del., called
on his trade connections locally the latter part
of last week.
D. B. Zimmerman, president of the Quema¬
honing Coal Company, whose headquarters
are in Somerset, was in New York and Wash¬
ington this week, and was expected at the
offices of the company here later on.
N. D. Cortright, president, and W. A. Cort-
right treasurer of the Beaver Run Coal Com¬
pany, made a trip of inspection to the com¬
pany’s mines at Beaverdale, the fore part of
the week.
Walter Eastlak of Merchantville, N. J., is
ill at his home suffering from pneumonia.
Mr. Eastlak is one of the prominent Ko-Koals
of the local breaker and one of his friends said
that his illness did not bother him so much
as the fact that he . would miss the “big do¬
ings” of Thursday evening.
Patrick Zane of the F. W. Foedisch & Co.,
forces made a trip to the mines last week
visiting Scalp Level, Windber, Johnstown and
Altoona and otherway points. After the
strenuous days of the wind up of the World’s
series, the change, he says, came as a wel¬
come relief.
J. W. Searles, sales manager for the Penn-
sidvania Coal and Coke Corporation, dropped
in to see local friends and made a visit to
the Philadelphia office of his company while
returning from the golf tournament that the
New York coal men held at Seaview, Saturday
and Sunday of the week.
C. H. Price of Reading, was NOT “one of
those present” at the closing of the baseball
championship of 1915 — and thereby bangs a
tale. It seems that Mr. Price had instructed
a round half dozen persons connected with
the coal trade to get him tickets and notify
him by telephone. The anxious days slipped
round without any call from those he relied
on. Did Mr. Price forget the request that
he made — he did not!
Quite a number of men interested in the
operating end of the coal trade visited the
exhibits and the meetings of the National
Safety Council, which was held at the Belle¬
vue Stratford the fore part of the week. While
most of the consideration given by the speak¬
ers and the devices shown in the exhibit
were for betterment in railroad and public
affairs, yet there was much which could be
applied to First Aid work at tbe mines.
W. H. Reed of the Reed Colliery Com¬
pany, whose home is in Dudley, Pa., was in
this city early this week. He recently made
a visit to the Broad Top section, and says
lalior is getting scarcer there and some of
the mines have been facing an actual short¬
age. Broad Top is one of the old mining
sections and its labor is of tbe settled char¬
acter so that this can be taken as a good in¬
dication of general conditions.
The placing of the order of the Western
Maryland railway for 1,000 seventy-ton coal cars
recently, is bound to produce a new clement
in the tidewater coal trade as affects this port.
Smaller sized cars have been the rule, and
with the new carriers of larger proportions
coming here from this line it is to be sup¬
posed that there will be a call for cars of
larger tonnage from the Pennsylvania and
the B. & O. The Western Maryland has
been one of the eastern roads that have rarely
suffered from a shortage of coal cars, but
the recent squeeze has caught them, as well
as their larger competitors.
Speaking of golf the other day and of the
New York coal trade’s tournament at Sea-
view in particular, one enthusiast in the game
of old Scotia felt constrained to say “ It looks
as though there can’t be a team of golfers
gathered together to give those fellows a
contest. However, it is not because Philadel¬
phia has not the material and I am willing to
wager that one good match would take a
lot of the ambition out of the New Yorkers if
it could ever be arranged. I, for one, believe
that if the Philadelphia men were to do the
challenging there might be a different spirit
shown and we might get somewhere. It is
about time that we got together, but it looks
as though we need some one to show us the
way and start the thing going.”
The news that Harry K. Stauffer, repre¬
sentative of B. Nicoll & Co., had been taken
ill in Elmira, N. Y., and had been forced to
his bed in a hospital there, which was re¬
ceived here last F'riday, came as a shock to
the friends of this popular coal man. Mr.
Stauffer had not been feeling at his best for
some weeks, but left ten days ago on a trip
to Pittsburgh. When he arrived later in El¬
mira, he could not stand the pain he was
suffering any longer and was ordered to the
hospital by the first physician that was called.
At first his malady was diagnosed as gall¬
stones. So serious was his condition that his
brother J. C. Stauffer, the local manager for
the Nicoll Company was called to his bedside
and has remained there since.
With the withdrawal of boats under the
Greek flag from the export trade, the tre¬
mendous strain made upon the shipping to
foreign ports in the grain trade and the press¬
ing into service of all sort of “tubs” into ore
carriage, bottoms from the coal trade are
about in the “hen’s teeth” class. On Tuesday
of this week, six charters were snatched up
in the schooner class at fancy rates for ton¬
nage from this port. Following is the list:
Schooners.
Pendelton Sisters, Philadelphia to Parama¬
ribo, 1,250 tons of coal, private terms.
J. Frank Seavey, Philadelphia to St. John,
N. B., 600 tons of coal, private terms.
Annie, Philadelphia to Casilda, 1,000 tons of
coal, $4.
Helvetia, Philadelphia to Jacksonville, 800
tons of coal, $1.10.
Clara A. Donnell, Philadelphia to Mayport,
1,700 tons of coal, private terms.
Ella M. Willey, same, 1,000 tons of coal,
private terms.
Denver Trade.
Denver, October 21. — {Special Correspondence.)
— Although milder weather has prevailed through¬
out this entire section for several days, severe
reminders of winter have already occurred, and
all ends of the coal trade report a good volume
of business this week. Until the past few days
the nights have been cold all over Wyoming
and Colorado, with a few days of damp, chilly
rains. As a result there seems to be no slacken¬
ing in the storing of coal for domestic pur¬
poses and there has been a fair demand for
immediate requirements.
Lignite production will fall a little under that
of last week, but northern operators report a
very satisfactory tonnage. Sugar factories are
nearly all running full time now, and this alone
will insure a good otttput for several weeks to
come.
The Trinidad district was behind on orders
at one time this week and are very busy on
steam contracts. Walsenburg mines will record
an output seventy-five per cent of normal for
the week ; Canon City about sixty -five per cent,
and Routt county mines are all running full
time. Anthracite producers state that there is
a heavy demand for that grade already, because
of a general desire to place orders early enough
to avoid the delay in filling that was experienced
last winter.
Prices for all grades of slack are steady and
unchanged. The heavy increase in lump produc¬
tion has not overtaken the very good demand.
The following prices for lignite are ruling f.
o .1). mines : For Denver delivery, lump, $2.35 to
$2.05; mine run, $1.50 to $1.65; slack, $1.05 to
$1.25. Points outside of Denver, lump, ,$2.50;
mine run, $1.55 to $1.65; slack, $1.05.
344
[October 23
THE BLACK DIAMOND.
New England Trade
I'osToN, October 21. — (Special Correspondence.)
— Aside from a slight slowing up in new busi¬
ness owing to unseasonably warm weather, con¬
ditions governing the local wholesale anthracite
and bituminous markets have not changed ma¬
terially since last reports.
Now that the bituminous trade is thoroughly
aroused over the recent action by Darrow-Mann
in making a sweeping reduction in 1916 prices,
all sorts of rumors are going the rounds, some
of which have absolutely no foundations, while
others contain possibilities. Darrow-Mann offi¬
cials have nothing to say, but one of them inti¬
mates that their New England campaign has not
yet started. In the meantime their new property
in Charlestown on the Mystic river is fast being
put into shape for business. One rumor has it
that the recent delay by the city of Boston in
awarding its winter bituminous contracts, and
the indefinite postponement of awards by the
Boston & Maine Railroad were due to the Dar¬
row-Mann campaign. This rumor evidently has
some foundation, but none of the parties con¬
cerned will make a positive statement in regard
to the matter.
In the meantime contract coals are coming
along fairly freely and cancellations of deliveries
are few and far between. The result has been
a slightly better demand for New River and
Pocahontas at the Mystic Wharf spot market
where offerings have been small. Prices at Mystic,
however, continue to fluctuate widely notwith¬
standing the official price of $3.60 and $3.70 per
ton f. o. b. cars. Georges Creek coal at Mystic
Wharf has been selling more freely at $3.90 to
$4 per ton, mostly the top price, but cannot be
called really active. Most of the Georges Creek
coal sold in New England is moved from Ports¬
mouth. All-rail Pennsylvania bituminous is mov¬
ing better, especially to western and central
Mas.sachusetts points like Worcester and Spring-
field where almost everybody who owns a factory
is making war munitions for the Allies. The
cargo business continued highly unsatisfactory.
Pennsylvania coals are quoted as strong on a
basis of ninety cents to $1.50 per ton on cars at
the mines. The pronounced increased activity
in the .steel trade has helped to strengthen the
southern bituminous markets.
The unusually warm weather has influenced the
anthracite trade more than the bituminous. A
year ago this time the weather was cold and
the household consumption enormous. While
business has slacked up some, most local whole¬
sale houses say it is all that could be expected
under ruling conditions. The trade has by no
means lost its optimism and is looking forward
to a good business next month and through De¬
cember. At Mystic Wharf stove and egg can be
had for $6.20 per ton on cars, and nut for $6.45.
.\longside Boston Harbor prices are ; Stove and
egg, $5.85 ; nut, $6.10 ; pea, $4.05 per ton.
The warmer weather has been highly favorable
for the movement of all kinds of coal by water
and tbe marine freight rate market is more active
than it has been in some time. As a result rates
from Hampton Roads ports to Boston are firmer,
althou.gh not quotably higher. They are seventy-
five to eighty-five cents per ton, mostly eighty and
eighty-five. Vessel owners are predicting higher
rates by another week. From New York to Bos¬
ton rates are unchanged at fifty to fifty-five cents
per ton. The Coastwise Transportation Company
of Boston has ordered a 12,000-ton steamer from
the New York Shipbuilding Company with which
it already had contracted for six boats. The boat
just ordered will be the largest of all. The
firm will probably in the near future order still
another steamer — a 9,000-ton boat.
Reports of car shortage are more numerous.
The New Haven Railroad recently issued a
notice to the effect that all New England indus¬
trial concerns should bear in mind that the car
shortage will grow more acute each week from
now on.
Baltimore Trade.
Baltimore, Md., October 21. — (Special Corre¬
spondence.) — Tight as a drum. That about ex¬
plains the local coal situation. Practically all
the more desirable coals have been withdrawn
from quotation temporarily. Cars are as scarce
as the proverbial hen’s teeth. Every coal pro¬
ducer in Pennsylvania, West Virginia and Mary¬
land is crying in vain for more rolling stock.
Supiily at some of the mines on particular days
is said to have been not more than one-fifth of
actual requirements.
The result has been in many cases that pro¬
ducers and distributors generally have fallen far¬
ther back on contract supply during the past
week, rather than having caught up. Very little
fuel, except certain less desirable grades, are on
the open market now in any quantity. Prices
for immediate coal have not advanced greatly,
apparently largely for the reason that this free
coal is so limited as not to cut any great figure.
Labor conditions seem, also, to be growing worse,
rather than better. All coal producing terri¬
tories in this section are now short of men,
and coal companies that ordinarily do not wish
to discuss any labor shortage or other trouble,
no longer make secret of the seriousness of the
condition. Letters of explanation that are pour¬
ing out as to why deliveries have not been made
as promised give both car shortage and labor
scarcity as the primary causes.
While prices offered and accepted are naturally
rather uncertain in the present restricted market,
they may be quoted to the trade about as fol¬
lows :
Fairmont —
Three-quarter . .
Run of mine. . .
Slack .
Somerset —
Best .
Good .
W. M. R. R.—
Freeport .
F. O. B.
Mines.
$0.95@1.00
.90
. .75® .80
1.35
1.20
. .95@1.00
F. O. B.
Baltimore.
$2.38@2.43
2.33
2.18@2.23
2.53
2.38
2.13@2.18
P. R. R.—
Best South Fork
Miller vein .
Ordinary .
1.40 2.58
1.25 2.93
1.00 2,18
In the face of steadily improving industrial
conditions and bettering demand for coal, the
fuel men here are quite optimistic despite the
present car troubles. They feel that the rail¬
roads, when the grain rush is over and when
regulation of the heavy ore hauling is better
controlled, will be able to move cars for coal
more promptly. Many cars have been tied up
at tidewater here, for instance, by reason of
slow reporting of vessel bottoms, the grain trade
requirements having made it difficult to close
coal charters as needed.
Lack of vessel bottoms has restricted foreign
shipments of coal. The past week saw but a
movement of 20,234 tons. Bunker sales have been
heavy 'recently because of the big grain fleet mov¬
ing from this port.
The retail hard coal dealers here are busy.
The rush of fall orders for household consump¬
tion is now on. Most of the hooks of coal men
here are full of orders, and deliveries have been
fairly prompt, despite poor car movement, as
yard supplies have been called upon.
Some Trade Briefs.
Five coal charters were announced here the
present week, the largest number for some time.
In anticipation of big business ahead most of
the coal operations are planning extensions. The
Consolidation Coal Company has decided to de¬
velop a big tract held at Bingamon, near Wyatt,
West Virginia.
A suit has been brought under the will of Jane
11. Nicholas, against the Philadelphia^ & Reading
Coal & Iron Company, for accounting on the
operation of a mine property in Schuylkill county,
Pennsylvania. It is claimed that one-sixth of the
property belongs to the Nicholas estate, but that
no accounting or return has been made on it
since 1890.
Earl Henry, chief of the West Virginia De¬
partment of Mines, who was a visitor here the
present week, repeated a previous warning, that
labor shortage at the mines would soon prove
the greatest industrial problem.
Buffalo Trade.
Buffalo, N. Y., October 21. — (Special Corre¬
spondence.)— The shipments of anthracite by
lake last week amounted to 94,640 tons, which
is a slight falling off from some preceding
weeks. The coal cleared as follows; Duluth-
Superior, 41,000; Milwaukee, 25,900; Chicago,
19,340; Ashland, 3,000; Fort William, 2,500;
Waukegan, 1,600; Racine, 1,300. There is no
big demand for coal up the lakes and loading is
not going on extensively this month, so that the
total will probably not come up to the same
month of last year.
A pretty good demand is coming in from deal¬
ers at present and it is accompanied by a short¬
age of cars, so that shipments _ are not being de¬
livered quite as rapidly as wished for. In all
probability the car shortage will continue quite
marked for some time to come and the com¬
panies are advising their customers to take their
coal as early as possible. Most all sizes are now
in fair demand, though the country districts are
not getting in as much chestnut as sometimes
at this season.
The bituminous demand is in a healthy state
and much better than some weeks ago. The
larger companies are not anxious for present
orders and it is said they have been withdrawing
their salesmen from the road, besides putting up
prices fifteen to twenty-five cents. This is an
indication that they are getting in an independent
position as to orders and feel that quotations
are going to be much stiffer before many weeks.
Already there is considerable firmness to the
market and coal is not so plentiful in the local
market as often times during the past few
months. Very little slack is being brought in,
except for the filling of orders, so that prices
have been maintaining much strength. Mining
is going on actively, so far as a shortage of cars
and labor will permit, and these two factors
enter into the situation to a large extent. A
good many more men could be put to work in
some districts if they were to be had. The car
supply is about one-third short of what it has
been.
The coke market has developed much firmness
and there is now a better demand in this sec¬
tion. Some producers have withdrawn their quo¬
tations on stock coke and the supply is short of
what it usually is. All grades of coke are now
maintaining much strength, and while prices have
not been advanced in the past week or two they
are ten to fifteen cents higher than was the case
a month or two ago, with a prospect of further
rise soon.
Buffalo Trade Briefs.
W. R. Crowthers, of the Cleveland & Western
Coal Company," Pittsburgh, was a visitor to the
coal trade here last week.
William F. McClurg, president of the McClurg-
Helsdon Coal Company, is back at the office
again after a siege of some weeks with rheu¬
matism. , He still finds a pair of crutches con¬
venient in 'getting about.
Arthur E. Hedstrom is general chairman of
the Laymen’s Missionary Movement, which is
holding numerous meetings in Buffalo churches
at present. E. H. Read, sales agent of the D. L.
& W. Coal Company, and M. S. Burns, of Palen
& Burns, are also acting as committeemen.
William F. Meyer, a lifelong resident of Buf¬
falo, died on October 18, aged seventy-one years.
He leaves a wife and daughter. Before going
into business he joined the army and went
through the Civil War, and on his return he
l)ecame a city coal dealer for about fifteen years.
.\t the close of this time he was appointed city
coal inspector and looked after all the coal
bought by the city for schools and other pur¬
poses. This position he maintained for a long
time. He was a man very much respected and
had many friends.
Omaha Trade.
Omaha, Nebr., October 21. — (Special Corre¬
spondence.) — A week of good weather has had
the effect of stimulating general business condi¬
tions in this territory and all lines of industry
are fairly busy.
Farmers are very busy with their fall plowing
and as a result the wheat remains in the stack.
The weather is hardly cold enough to make heat
necessary and as a result very little coal is mov¬
ing out of the dealers’ bins. The coal market
is firm due to a fair demand for storage pur¬
poses. Plenty of all kinds of coal is available
with the exception of the slight scarcity in Kan¬
sas nut coal.
Southern Kansas — •
Nut .
Slack .
Franklin County —
Lump .
Williamson County —
Lump .
Egg ••••••■. .
Rock Springs —
Lump .
Nut .
Arkansas Anthracite —
Lump . . .
Broken sizes .
Colorado, Routt County,
burg and Canon City —
Lump .
Nut .
Pea .
F. 9. B
Mines.
. $2.00
. 1.35
. $1.60@1.75
. 1.60@1.75
. 1.60@1.75
. 1.45@1.60
. 1.45@1.60
. 2.50
. 1.75
. 3.85
. 4.10
Walsen-
3.00
2.25
1.25
F. O. B.
Omaha.
$3.45
2.80
$4.10@4.25
4.10@4.25
4.10@4.25
3.95@4.10
3.95@4.10
6.25
6.50
6.85
7.10
6.76
6.00
5.0p
.
1
Phe Black Diamond
Vol. 5f
» No 18
J. i'NU. lO (-;OL
OCTOBER 30, 1915 $3.00 Per Year
Draft the Important Factor in A House Furnace.
A month ago we printed an article about de¬
termining by experimenting the flexibility of a
household furnace. This attracted widespread
attention, because, in print, the subject is prac¬
tically new. Quite a number of comments have
come from those who also have done some ex¬
perimenting. George Reed, president of the Lin-
coln-Springfield Coal Company, was one of the
first. He recites this incident:
“Some two or three years ago I had just
moved into a new house. The family decided
to go away for three or four days, and, as it
was cold, there was danger that the water pipes
would freeze. So the fire was drawn and the
water was taken out of the hot water system.
“After an absence of four days we returned
home. The weather meanwhile had become
much colder, going close to zero. The first thing
we did, of course, was to build a fire. In a very
short time the water was up to 190 degrees,
which is supposed to give all the heat that an
ordinary house needs, even in zero weather.
However, the house remained miserably cold.
The family hovered over the radiators for a
while and then went to bed early. The fire was
left going full blast all night in the hope that
the house might be warm the next morning.
“When we arose, however, the place was still
cold as it had been. While breakfast was being
prepared I stepped out on the porch to ^t the
morning paper and left the door open behind
me. I was no sooner in the house than the
whole place became burning hot.
“The explanation, of course, is perfectly simple.
The air in the house had not been disturbed for
three or four days. The house was filled with
dead air. Immediately the air was enlivened
by some fresh air, the house became hot.”
This is one point — not a big one, however—
for tile retailer to watch when the customer is
complaining about the coal. The coal may be
the best and the furnace doing the best work,
but even so the best combination of coal and
furnaces cannot heat dead air. On this account
many people believe that a hot air furnace is
the best because it always brings fresh air into
the house.
Some modern heating systems have a com¬
bination of hot air and hot water. The hot
water is used in that part of the house where
the draft is likely to be strong and the hot air
to be used in the protected rooms. This com¬
bination heating system has the double virtue of
giving the householder full value from the heat
generated in the furnace, and because ^ the air
is constantly being renewed, a more efficient dis¬
semination of the heat.
Burning New River Coal.
George Stahmer, in charge of the bituminous
department of Mitchell & Dillon Coal Company,
has begun to experiment with the furnace in his
home at Maywood, Ill. His house has a ground
floor space of sixty by thirty feet. This is di¬
vided into six rooms. It is a bungalow. In
addition one very large room upstairs is kept
constantly heated. The house has an American
radiator hot water heating system. The furnace
has a cylindrical fire pot twenty-four inches
across. This is a low type of furnace. The
hot water coils are immediately above the fire
pot.
Mr. Stahmer uses New River coal. His ex¬
periments have been extensive, but he has hit
upon a tiring which is worthy a trial. So far,
the lowest temperature has been forty. At times,
the wind has been rather high. Concerning his
experiment he said :
"In getting the fire started I simply put in
some kindling and shoveled in some of the mine
run coal. Naturally some of the fine coal fell
into the ash pit. As no ashes were there it
was easy to shovel this out and put it into the
fire again. If I were starting a fire again T
would use only lump coal at first.
“Instead of spreading the coal on as a blanket,
as most people do, I fire it in a pile in the center.
This Can Be Controlled by the Size of
Coal Used or by the Dampers — Several
Hints on Heating a House.
I find that this gets away from any suggestion
of smoke. There is always an exposed surface
of live coals to ignite the gases as they come
off. I plan to leave about three inches of live
coals around the pile of green coal in the center.
That gives me a pile of fresh coal about
eighteen inches across at the base and tapering
to a rounded peak.
“When fired in this kind of way it does not
take much coal to keep a furnace going at a
comfortable heat for twelve hours. I do it right
along with three shovelfuls.
“When the weather gets colder I will probably
put on six shovelfuls. Still, I expect to con¬
tinue to fire in the same way, namely, with all
of the fresh coal in a pile in- the center, because
that seems to be the way the smokeless coal will
burn to best advantage.
“My furnace is good, but the draft is not. When
the wind is out of the northwest, north, or north¬
east, I get the best draft. When the wind is in
any other direction I hardly get any draft at
all.”
Influence of Size.
Since the first article on this subject was writ¬
ten the editor of this paper has continued his
experiments with his own furnace. There were
three days when the temperature dropped down
to forty and when the wind was especially strong
and cutting.
The house in question is poorly built. It offers
practically no resistance to the wind. Thus the
heat radiated by the pipes is quickly blown away.
Tliat defect, of course, is remediable by the use
of weather strips on the windows.
In an attempt to warm the house anthracite
range coal was used at first. Without a wanton
waste of coal it was out of the question to raise
the temperature of the water above about 170
degrees. Fully twenty degrees more were needed
to keep the house warm. A fuel bed of about
seven or eight inches in thickness was main¬
tained, the ash pit door was left open, the ashes
were shaken down until bright coals were show¬
ing through the grate bars, and the damper was
up. The conditions were ideal for a good fire
and yet the anthracite range did not respond. As
it proved later, it could not under those condi¬
tions.
This does not mean to say that there was not
enough heat in the anthracite coal. It does not
imply that anything was wrong with the furnace.
On the contrary, it soon was proved that the plant
and the coal were both first class but the sise
was wrong. That is, the chimney is peculiarly
constructed and gives really too much draft for
a house. There is enough natural draft to run
a low pressure plant in a six apartment building.
Due to the strength of the draft, the air was
drawn through this fuel bed too fast and hence
it had a tendency to cool down the fire, rather
than increase it. This point was proved the first
evening, when, with the wind still high and other
conditions unchanged, some pea anthracite was
thrown in with the range. This checked the
draft enough to make it do all the work of burn¬
ing coal that it was supposed to do. Accord¬
ingly, the temperature of the water soon rose to
100 degrees and then up to 200. At that point
the fire was checked. With this fire it would
have been very easy to boil the water in a few
minutes.
This indicated unmistakably that, in this par¬
ticular furnace, the control of the draft was the
principal thing. It indicated that so long as that
draft was controlled the results were forthcom¬
ing. It made no difference whether this control
was gained by an assortment of sizes of anthra¬
cite or by different sizes of other coals made.
.So long as it was controlled, the heat was ob¬
tained.
When this theory had been indicated by the
use of one coal, experiments were made to prove
it Ijy using other coals. Some excellent results
had previously been obtained while using Frank¬
lin county Number Two nut. Most persons be¬
lieve that this coal is really too small for do¬
mestic use. In popular belief it is a steam coal.
However, with the draft as strong as in this
particular furnace it proved too large. That is,
on the third day, with the temperature still at
forty and the wind still high, Franklin county
Number Two nut was fired alone the first thing
in the morning. The same conditions were ob¬
served as on the preceding day. That is, the
live coals were to be seen through the grate
bars, the draft passages were wide open, and the
coal was given every opportunity to do the best
that it could. However, it soon was seen that it
could make very little headway unless the thick¬
ness of the fuel bed was increased all out of
proportion to economy. The one concrete result
was an enormous amount of smoke, but no ma¬
terial increase in the heat.
Instructions were left that if the fire did not
respond before eleven o’clock to throw in some
of the pea coke that had been used in earlier
experiments. For the first two hours the water
temperature was about 170 degrees. The fuel
bed was about eight inches thick.
This indicated that too much air was passing
through. Consequently, a little before eleven
o’clock some of the pea coke was thrown in.
This stopped some of the chinks in the fire and
instantly the temperature rose to about 190 de¬
grees.
These two experiments proved that, in this
particular furnace, the principal danger was an
oversupply of air. The condition may be found
in other household furnaces. Still, it must be
said that this is an exception to the rule. There¬
fore, the retail dealer will need to be very care¬
ful in applHng the results of this e.xperiment,
because in most houses the tendency is in the
other direction. That is, most houses have too
little draft instead of too much. What he will
need to do, as a general rule, is to supply a lar¬
ger, rather than a smaller coal to get the great¬
est benefit of the available draft.
In this particular case, it was necessary to
check the draft by the use of the smaller sizes
of coal.
The experiment proves the tremendous im¬
portance of draft in the furnace. It indicates
that this has to be controlled by the size of coal
used. On that principle the retailer can pro¬
ceed with absolute safety, knowing that he can
make nearly any furnace do good work if he
only uses a little intelligence in fitting the sizes
of coal to the amount of draft available. This,
however, must be found out by experiment
rather than by any means known to science, un¬
less, of course, he wants to go to the expense
of putting on a draft gauge.
Unintelligent Firing.
After the trying conditions of those three days
had passed, the weather moderated considerably,
but there was still need for a fire. Some other
experiments were tried merely to test out some
conclusions previously reached. One of the early
conclusions was that bituminous coal and coke,
if they are to be fired without creating any
smoke, must he handled very carefully. 'I'his is
to say that the bed of live coals must never be
completely covered by green coal. This is ti>
the point in Mr. Stahmer’s method of firing. To
establish that point beyond a peradventure, the
furnace, one Sunday morning, was fired in a
reckless fashion. There was a good bed of glow¬
ing coals some seven or eight inches below the
level of the fire door. This was completely cov¬
ered by alternate shovelfuls of pea coke and
Number Two Franklin county nut. The drafts
were left wide open, including the draft slide
(Concluded on page 3.53)
*
lllMUtlllimilttllllilllltllllllllllilllllllllllllllllll^llJllllltlllllllllllllllllllKllllllMI
346
THE BLACK DIAMOND
[October 30
News and Hints About Retail Advertising.
A November Suggestion
Ever since our Pilgrim forefathers were able
to break their long fast and in commemora¬
tion set aside one day in each year to give
thanks for that which they had received, the
American citizen thinks of “drum sticks” and
cranberry sauce at the mere mention of No¬
vember. ,
November stands out from other months for
other reasons, too. It is the twilight time of
the year. To the farmer, it marks the com¬
pletion of the year’s work with the harvest-
The man who conducts this department sub¬
mits an advertising suggestion herewith. It
shows retail coal dealers just how effectively
they can connect their advertising with the
month — November.
The turkey advertisement shown herewith
would make an attractive newspaper adver¬
tisement or mailing card. Of course, it ap¬
peals to the housewife, the cook, but as the
woman is a large buyer of cooking as well as
other domestic coals, this advertisement ap-
For a turkey
roasted just
right cook
it with
EXCELSIOR COAL
EXCELSIOR COAL is an excellent one for cooking and baking purposes. It lights quickly, makes a hot and
steady fire, burns slowly, and causes no smoke or soot in the kitchen.
It is also just as satisfactory a coal for furnaces, hot water heaters, stoves, as it is for kichen ranges.
Let us send send you a small amount for trial on our “NOT SATISFIED — NO PAY” basis. Phone or write the
PHONE
339
EXCELSIOR COAL CO.
hard and
SOFT COAL
'iiMiiiitiiiiiMiiiiiiiiiiiiiiiiMiiiHiiiiniMiniuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiininiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiintiniiiiiiiMiiiiiiiMimiiimii iiiiiiinMiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiniiiiiiiMiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiitiiiiiniiiiiiiiiiiiiiiiiiiiii>iiiiiniiiiiiiiiiiiiiiiiiir.
ing and storing of the year’s crops. No won¬
der November offers so many advantages to
advertising writers for attractive and appro¬
priate advertising copy. The linking of adver¬
tisements with Thanksgiving day touches a re¬
sponsive chord in the mind of the buyer.
First Anniversary of
The Dublin Ave. Coal Co.
One year ago today wc made ouv initial bow to the people of Columbus
with the best coal on the niaiKet at the lowest nrlce8> We adopted the
name of
THE DUBLIN AVE. COAL CO.
%
by starting in business on .Dubl'n .\ve.
The people soon found out that our Prices were the lowest, but were
verv much In doubt as to tlie (juaUty of our coal. We have worked very
hard In order to convince each coal consumer that we are able to give the
very best grades of coal at the lowest urfeos.
Today wc have nearly 2000 customers on our list
and each consumer who has given us an order for their supply of coai hai-
found out that wc are able to give Kootl coal at low prices and have re¬
ordered.
We are selling coal at 50c less on the ton
How can we do this?
FIRST— -"Wt? buy for ensh and sell for cash.
SECOND — We have no agents or solicitors to add 25c on
the ton for their service.
THIRD — We have no bad accounts on our books to collect.
If von take all this Into consldcrs^tion. you can see how we can sell
for less and sive vou a Rood Rr.ade,-ot' coal- Tha assistance of tlio^ pur¬
chasing public has Increased our business to such a capacity that wc were
ohllRed to take up larger tiuarlers which we now occupy at
332 WEST BROAD STREET
OUR MOTTO IS:
"A SQUARE DEAL”
For this event our llrst anniversary wc will sell coal at the following:
prices on
WEDNESDAY. SEPT. 8 and
THURSDAY. SEPT. 9:
W. Va.' Splint, re-sc.rccncd, five from slate and clinkci’a,
at $>1.00 per ton.
Pomeroy Lump, rc-screenod, froo from slate and clinkers,
at $2.85 per ton.
You Can place your onler on the^e two davs tof future dc-ilvery. No
rotrlcHons— buv anv amount you please." Wc will deliver any plate In
the city In lhr«i-t®n lot sor more at the above prices.
Remember these prices .ire good for the two days
advertised.
This coal Is the same erade that you are paying more money for else-
honor of our anplvorsary. we "will give one fon of coal free toSach
of the five customers who placed their orders on our opening day lost vear:
Traphagan, Mr. Jehn Fink,»
739 S. Front St. 1027 City Pork Ave.
J. Lavinc, Robert Blankc,
-.Srsi 'w'fvgcr St. 701 S. Parsons.
Mr. Gurevitz,
578 E. Livingston.
Yours for square dealing,
Dublin Ave. Coal Co.
Cit. 4276.
332 WEST BROAD ST.
C. H. Furman, Mgr
Main 4.347. Res. M. 1958.
peals to a very desirable class of coal buyers
and prospective customers.
The writer believes that the general arrange¬
ment of the advertisement is attractive and
that it will catch the eye of the average woman
reader. He further believes that it will hold
the reader’s interest, and convince her of the
worth of the coal advertised. He thinks that
the last paragraph will tend to create a desire
in the coal buyer for immediate action and to
give the coal an early trial.
Should dealers desire to use this advertise¬
ment for their own purposes, The Black
Diamond will gladly furnish any dealer so re¬
questing with an engraving of the turkey illus¬
tration at cost.
Ad of the Dublin Avenue Coal Company.
Among Columbus Dealers.
The fact that the capital city in Ohio hap¬
pens to bear the same name as that of the
discoverer of this country seems to have in,-
spired the coal merchants of this city to dis¬
cover new ways of promoting their business
and bettering trade conditions.
That this is the case is demonstrated
by some of the things different Columbus re¬
tail coal dealers are doing at the present time.
The advertisement shown herewith is
unique, not because it contains anything out
of the ordinary from an advertising standpoint,
l)ut from the fact that it advertises a novel
selling plan in a novel way.
The Dublin Avenue Coal Company seizes
tlie opportunity offered by its first anniversary
to use this fact as a lever in attracting the
reader’s attention and to explain their selling
plan to him.
One of the most startling and yet most con¬
vincing arguments brought out in the adver¬
tisement is the fact that this company is sell¬
ing coal at fifty cents less per ton. The com¬
pany does not stop with the mere mention of
the fact, and thereby have it lose its force,
but goes further to explain how they are able
to make this reduction in price.
Just to show that the casli plan is meeting
with favor among the coal buyers of Colum¬
bus, this company tells of the necessity for
larger quarters and of the erection of a new
plant to accommodate the increased amount
of business.
The fact that this concern is “out and out”
with the selling plan, and that the offering
of coal at lower prices is not merely “say so,”
it publishes its prices on two coals.
'Another unique feature, and one which a
new coal company might advantageously use,
is the fact that this company will give a ton
of coal free to those people having placed their
order with the Dublin Avenue Coal Company
on their opening day.
C. H. Furman, manager of the company,
explains why this company happened to take
up their present cash basis plan in the fol¬
lowing:
“Just a little over a year ago we entered
the coal business in this city, with a selling
capacity of eight tons a day. To handle this
tonnage we employed four solicitors and sold
coal on a credit basis. On December 34, 1914,
we discharged all of our solicitors (which, by
the way, must have been a most acceptable
Christmas gift for the solicitors) and started
to advertise our coal in the local papers and
to sell on a cash basis only, and the success
with which we have met is demonstrated by
the fact that we are building a new yard and
plant to accommodate our increased amount of
business.”
Mr. Furman told the writer that he would
gladly give the benefits of his experience in
establishing and executing a cash basis plan
to any dealer desiring to put his business on
a similar basis.
Here is a firm that realized the benefits de¬
rived in operating a retail coal business on a
cash basis, and whose analysis of the problem
of doing so seems to have been a correct one,
and one that other dealers might advantage¬
ously follow.
When gas comes in, the coal dealer usually
goes out, at least some of them do; but not
so with Homer C. Gill, a coal dealer of Colum¬
bus, Ohio. In fact, Mr. Gill uses the most
vital argument in favor of the use of gas as
fuel as a foundation for his own argument
in selling coal — the cost argument.
“You ask me what my advertising policy
is,” says Mr. Gill. “I will say that is to ad¬
vertise the fact that we are trying to please
the customer in every respect, quality first and
price second. The average consumer does not
know, neither does he care, what the coal
dealer’s profit per ton is, but he does know
and does care about the difference in quality
in coal, hence our always preaching quality
first.
“Now when you compare the cost of coal
with that of gas you will find that coal is from
Coal Cheaper Than Gas.
If we can prove to you beyond
i|uestion of a doubt that you can get
100 per cent more heat efficiency from
genuine Pocahontas coal than from gas
at the same price, don’t you think it
would be real economy to burn coal?
In addition to getting more heat units
ttor every dollar spent, you won't have
to live in the fear of shivering ail
winter from a low pressure of gas,
bursti^d gas mains or possibly no gas at
all. There is hardly. a week goes by
that yoti ,don’t see news items from all
parts of the country that read^ “Gas
Give^) Oui-.’’ You should worry, with
your coal ^-lin ful of genuine Pocahon-
ta.s coal. As;< Hr.-mer C. Gill, Citz. 7800,
Bell Main i90 5. — Adv.'
V
Why Take Chanc;es?
On the heating of >’aur hom- tiii,s win¬
ter, when genuine “Pocahontas coal’’ is
more plentiful than ever. Pocahontas is
the ideal fuel, no smoke, iio soot, little
ash and volumes of hear. In fact, we
can prove to you beyond n doiibr, that
every dollar spent for Pocahontas coal
produces 100 per cent more heat edi-
ciency, than the same amount spent
for gas. And ' then you don’t take
chances on the sudden chill cf \ om-
home, from the low pres.surc of gas
or possibly no gas at all. Thiipc iliis
over, then c.all Homer C. Gill, Cilizen
7S0G; Main 2907. — Adv.
_ j
Ads Used by Homer C. Gill.
100 to 125 per cent cheaper. Why? Because,
in a foot of gas there is only 980 B. t. u.’s,
whereas in a pound of Hocking there are at
last 12,000 B. t. u.’s, or more, and in a pound
of No. 3 Pocahontas you have 15,500 B. t. u.’s.
Figuring gas at thirty cents per thousand
against Hocking or Pocahontas you will find
No. 18]
THE BLACK DIAMOND
347
that the user of gas uses several dollars’ worth
of it before his neighbor uses a ton of good
coal.
“Twenty-five thousand feet of gas will equal
a ton of Hocking, and 31,900 feet of gas will
equal a ton of Pocahontas, and when you con¬
sider the fact that gas costs thirty cents a
thousand feet you will readily see that it is a
very expensive fuel as compared to coal and
for general household purposes and use in
furnaces.”
Mr. Gill’s advertising is unique in the fact
WHY TAKE A CHANCE?
mip-
ter.
Its
Jic
/res
AS of
' US€
Ai XVi.l .K-ld ••
-ond jbaptiet church WcdncsiUay
afternoon at 1:30.
ATE COLD BREAKFASTS.
Newark Residents Without Gas For
Few Hours Early Monday — Main
Was Broken.
KEWARIC. OHIO. OCT. i:._Now-
ark people, a great majority of whom
depend on natural gas for light and
fuel, awoke this morning to a gasle.ss
condition, owing to a brea'H In the
main north of the city about 4 o’clock
this morning. But few people were
prepared for such an emergency and
as a result many went without break¬
fast, and several manufacturing es¬
tablishments were unabl© to operate
untllr^^5:30, when the gns came on, the
repair 'Having been made.
INJURIES ARE FATAL.
Henry •r, Gard*^ Who Was
• n
C'»
C(
“SAFEIY FIRST”
BURN COAL
—the Only Reliable Fuel. 1095^ Cheaper Than Gas.
Advertising Being Done by the Columbus
Dealers.
that he uses “reader” space as shown by the
two advertisements herewith.
This dealer bases his selling and advertising
argument upon a sound knowledge of the coal
that he sells and upon a sound knowledge of
competitive fuels as well. The value in dealers
knowing all about the coal that they sell is
evidenced by the success of this dealer in the
above case.
Gas has come to Columbus and considering
that it is a “thirty cents per thousand feet”
gas rate, you will realize that it is pretty “stiff
competition” for the retail coal dealers there.
But the coal dealers are not lying down
and letting gas walk over them. They have
formed an association for the express purpose
$10 REWARD
A Reward of $10 will be paid
for the arrest and conviction
of a n y person or persons
caught stealing coal from
this yard, car or wagon.
This coal is protected by the
COAL DEALERS MUTUAL PRO¬
TECTIVE ASSOCIATION
Bell Main 2625 Citizens 3945
Sign Used in Columbus.
of collecting data and information concerning
the use of gas in other cities, and it is need¬
less to say that most of the information col¬
lected is not of a complimentary nature for
the use of gas as a fuel.
Cases where gas has failed are published in
advertisements, a sample of one of them be¬
ing shown herewith.
A Coal Dealers’ Mutual Protective Associa¬
tion has been formed in Columbus, Ohio, for
the purpose of preventing the stealing of coal
from cars, sheds and wagons.
This association is furnishing its members
with printed cards, as shown herewith, and
which are tacked up at various places in the
dealer’s yard.
As there is much stealing of coal going on
over the country, it seems that this plan might
be a good one for other city and state coal
associations to adopt.
A Danville Dealer’s Advertisement.
One of the most attractive and effective ad¬
vertisements that has ever come to the notice
of the Ad Critic is one recently used by Wil¬
liam B. Halbert, a retail dealer at Danville, Ill.
The original size of the advertisement shown
herewith was 13x15 inches, and appeared in
the Danville Commercial News.
Analyzing this advertisement from an al-
vertising standpoint, we would say that the
general arrangement is attractive and the type
matter well balanced with plenty of white
space around it.
The catch-line, “Who’s Your Coal Man?”
together with the attractive background and
illustration is bound to catch the eye of the
reader and hold his interest. The opening
paragraph is a good introduction. It gets
right down to business and wastes none of
the reader’s time.
The arguments presented in the following
paragraphs are right to the point. They are
concise, terse and convincing. They convince
the reader of the worth of the coal and of the
satisfaction in employing such courteous serv¬
ice and treatment as is offered by the adver¬
tiser. They create action and a desire in the
coal buyer to give the coal an early trial.
Though we do not know of the actual re¬
sults this advertisement produced we are cer¬
tain this strong appeal for a trial from pros¬
pective customers gave every reader of this
A Convincing Advertisement.
advertisement the impression that here was
a concern who appreciated customers, and who
evidenced this firm’s desire for more business
by this large and well prepared advertisement
— a live and progressive firm.
As we say, this is one of the most attractive
advertisements that has ever come to notice,
and one that other dealers can well follow as
an example of real advertising. The Ad Critic.
Emigration vs. Immigration.
As there is so much talk about an impending
shortage of labor, it is well to pay attention to
statistics of immigration as well as to those of
emigration. It is well known that immigration
has been light ever since the European war broke
out, and this factor must be given full weight in
any discussion as to the prospects of a paucity
of new supplies of labor. Likewise, it is becom¬
ing evident that predictions of a rather marked
increase in emigration are at length being borne
out. This outward movement has not been suffi¬
ciently heavy to merit especial attention, nor has
it been so marked as to warrant statements that
the country is losing thousands and thousands of
aliens. It is true that the figures run somewhat
against gains for this country, and now that Ital¬
ians are going home, presumably to join the col¬
ors, emigration has assumed quite large propor¬
tions. Yet the exodus of all classes, as revealed
by official statistics published within the week, is
still below that of peace times. Even with light
immigration, the United States has gained more
human beings from other countries than it lost,
immigration in nine of the fourteen months July,
1914, to August, 1915, having exceeded emigra¬
tion. Indeed, the outflow during the fiscal year
ended June 30 last aggregated only 384,174 per¬
sons, whereas in the preceding year it amounted
to 033,805, while in the fiscal year 1913 the total
was 611,924, and in 1912 it was 015,292, these
sums being exclusive of arrivals of United States
citizens. Stated in another way, the outbound
movement in normal times has averaged over
50,000 a month, while in the first year of the war
it was about 32,000 a month. But in August emi¬
gration increased to 41,737, the largest total re¬
ported since December of last year, and one that
reflects an increase of 156 per cent, over the
small movement noted in July, when only 16,015
persons left this country. This quite remark¬
able rise in emigration was due to Ihe fact that
over 25,000 Italians departed from the United
States during August, their exodus in this re¬
spect being far and away the most noteworthv
for any of the races.
creased a little over July, 21,949 immigrant aliens
and 5,949 non-immigrant aliens having been ad¬
mitted. Thus, the grand total of those coming
in was 27,413, and as 41,737 persons, exclusive
of United States citizens, departed, the country
lost on the ebb and flow 14,324 persons. Total
immigration for August declined 47 per cent,
from that month last year and decreased 81 per
cent, from August, 1914. Besides the Italians
the country lost more of the English and Portu¬
guese races than it gained, the respective sums
for August being 199, 139 and 468. During
Aiig'ust this country received more professional
persons and more skilled hands than it lost, but
the outflow of laborers greatly exceeded the in-
ratio being approximately five to one.
British North America is sending us more immi¬
grants than any other section of the globe.
The following table shows .
grant
named
Jan. .
Kell. .
March
.'\pril
May .
.tune
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
Total
aliens during each month
of the
1915
1914
1913
1912
.. 15,481
44,708
46,441
38,453
. 13,873
46,873
59,156
45,380
. . 19,263
92,621
95,958
91,185
. . 24,532
119,885
136,371
99,839
. . 26,069
107,796
137,262
113,635
. . 22,598
71,728
176,261
92,425
. . 21,504
60,377
138,244
78,101
.. 21,949
37,700
126,180
82,377
29,143
136,247
105,611
30,416
134,140
108,300
26,298
104,671
94,739
20,944
95,387
76,315
. .165,269
688,495
1,387,318
1,026,360
immi-
years
1911
36.361
42,826
81,687
98,036
95.361
71,019
51,737
50,110
62,599
69,418
61,765
61,626
782,545
This table sets forth the number of non-immi¬
grant alien arrivals :
Tan .
1915
. 5,203
Feb .
. 4,831
March . .
7,072
April . . .
. 7,233
May • • •
6,294
June . . .
. 5,901
tuly . . . .
. 5,593
Aug. . . .
. 5,464
.Sept. . . .
Oct .
Nov .
tlec .
Total .
. 47,601
0(1. tot.
.212,870
1914
1913
8,442
8,794
9,242
12,199
16,302
24,283
22,322
38,808
19,052
27,430
13,366
22,196
11,638
16,358
13,525
16,475
15,481
20,441
14.825
18,927
9,027
12,360
6,514
11,314
159,736
229,585
848,231
1,616,903
1912
1911
8,367
7,243
9,521
8,670
19,763
15,230
27,162
18,841
19,022
14,714
15,810
10,933
12,417
9,989
15,424
13,242
22,855
16,194
20,288
17,470
13,348
12,382
11,293
10,061
195,270
154,969
1,221,630
937,51 1
Total emigration during the months named is
indicated below :
1915 1914 1913
Jamiary . 31,556 69,218 67,035
February . 14,188 34,722 30,119
March . 15,167 28,777 30,867
April . 17,670 50,234 45,526
May . 17,624 ,57,783 62,349
June . 21,532 78,207 58,186
Tulv . 16.015 ,54,885 62,702
August . 41,7,17 54,112 49,095
September . 34,757 37,900
October . 39,410 54,609
November . 40,748 53,971
Ilccember . 45,525 56,587
Total . 175,489 588,378 598,946
Arrivals and departures of certain races of
aliens during the first thirteen months of the Eu¬
ropean war, August, 1914, to August, 191.5, in¬
clusive, are given hereunder :
Arrived
Departed
Change
Oermaii .
. 24.091
7,885
I 16,206
French .
. 18,558
12,105
1 6,453
Russian .
14,708
D 10,044
Fnglish .
55,414
I 8,m
Irish .
9,868
I 22,940
Scotch .
. 22,115
11,529
I 10,886
Italians (’soutli') .
. 50,100
14.5,330
n 95,230
Italians (north) .
. 12.253
13,255
D 1,002
Polish .
. 6,1(8
5,537
I 611
fTebrew .
2,217
I 6,222
Creek .
. 18,537
13.146
I 5,391
348
THE BEA( K DIAMOND
[October 30
Plant of Taggart & Co. at Savannah, Ga.
Due to the growing importance of Savannah,
Ga., as a coal market, both for tlie local dis¬
tribution of coal for domestic and steam making
purposes, and for providing coal for bunkers,
Taggart & Co. have increased their facilities for
discharging, storing and reclaiming coal so as to
keep pace with the progress that their city is
making.
The cuts that accompany this article show some
recent installations at their plant whieh fronts
on the Savannah river. Savannah is located
about eighteen miles inland from the ocean and
Taggart & Co. are in position to receive coal both
by water and all-rail. Coal coming all-rail
originates in the Virginia fields and the Alabama
fields.
Before the present improvements were put in,
coal at the Taggart plant was handled by loco¬
motive cranes with grab buckets. Inasmuch as
it was desired to increase the capacity of the
plant by 100 per cent, it was decided to use a
conveyor system for taking coal from the rail-
The Inclined Conveyor.
road cars and dropping it into storage, or directly
into chutes that could be trained so as to dis¬
charge into the holds or bunkers of vessels along¬
side. Accordingly two conveyor systems were
installed.
For both machines there is a double track hop¬
per arranged so that coal can be taken from two
switches — the hoppers being protected by gratings
so that the extremely large lumps of coal cannot
pass to the conveyor, these being broken by the
operator dumping the cars. From the track hop¬
per, the coal passes to the conveyor, which is
made up of a double strand of roller bushed
chain with corrugated pans hung between.
From the track hopper the conveyor travels on a
horizontal for about forty feet, then travels on
an incline to a thirty-five foot elevation, dis¬
charging into barges, tugs and dredges.
The conveyors will unload four fifty-ton cars
of run-of-mme coal per hour at a speed of sixty
feet per minute, and are arranged so that it is
not necessary to make any shifts after the cars
are passed over the hoppers, which was necessary
on account of the side tracks having only space
enough to accommodate eight cars in the yard.
The coal is fed to the conveyors by reciprocat¬
ing feeders that control the coal at a uniform
feed, and does not allow any overloading of con¬
veyors.
Each conveyor is operated Ijy a fifteen-horse¬
power electric motor, direct connected, located
on the towers, while the starting box is conveni¬
ent to the operators.
The complete arrangement was designed,
manufactured and installed by the Gifford-Wood
Company, Hudson, N. Y.
Some very interesting facts about Taggart iS;
Co. was given at a recent dinner of the Rotar>
Club of Savannah by J. P. Taggart, a member
of the firm. Mr. Taggart said:
“The firm which I have the honor to represent
in the Rotary Club was established by my father,
Col. G. I. Taggart, in January, 1866; we will,
therefore, be celebrating our fiftieth anniversary
in business this coming year. The capital con¬
sisted of a good business repute established in
Philadelphia prior to the war and a small amount
of salary saved as an officer in the United States
army.
“A wharf was rented at the foot of East
Broad street. A small office was built, consisting
of one room, the front part of which was used
for an office, the back part for sleeping and cook¬
ing quarters. This was before the days of the
telephone. Col. Taggart placed small boxes on
the otitsidc of drug stores and other stores on the
|)rominent streets, the outside of the boxes
marked ‘Coal Orders — Taggart.’ Arising in the
morning. Col. Taggart would make the rounds of
these boxes and gather the orders, take them
down to his dock, load his coal himself on the
wagon and deliver it to his customers. He used
for delivery a Percheron horse, brought from
Philadelphia. This splendid animal attracted
much attention and was driven by the Colonel.
This was remarkable because of the fact that he
was the first white man to do such work as driv¬
ing a coal cart, this work being always done by
negroes.
“Anthracite coal was practically an unknown
product to the people of Savannah at the time
and was at first called ‘black rocks’ by them ; in
many instances it was necessary for Col. Taggart
to go to the house and instruct the user how to
burn this. class of coal. One of his first cus¬
tomers was an Englishman by the name of
.\ndrew Low, one of Savannah’s prominent citi¬
zens at the time, who afterwards became a
steady customer of my father’s coal, as he much
admired the energy displayed by my father in
doing work which, up to that time, was left for
the negroes to do and not considered fit for a
southern gentleman.
“.At that time schooners brought cargoes of
coal to Savannah, consisting of from 300 to 400
tons, whereas now their capacity is from 1,000
to 2,000 tons. This gives some idea of the ship¬
building in those days.
“After running this business two or three
years from the office on the dock, the business
grew until it was necessary for him to move
bis office. He then moved to 28 Bay street cast.
Two telephones were secured from a friend in
Philadelpbia. These were the first telephones
ever brought into the state of Georgia, antedat¬
ing the establishment of Charlie Beck’s telephone
exchange.
“As business progressed steam coal was han¬
dled and marine business sought. At the same
time Col. Taggart had saved enough money to
buy and pay for the wharf he had formerly been
renting, renting half of it to a new coal firm
just begun under the style of Dixon & Murphy.
“Upon coming of age my brother and I were
taken into the business, our father retiring about
two years before his death and disposing of his
interest to us.
“In 1910 the progress of Savannah as a sea¬
port had so impressed us that we decided to re¬
linquish the retail part of our business and bend
all efforts towards the wholesale and shipping
branch of the business. W’e installed locomotive
cranes of a capacity of twenty tons each and
began most energetically an effort to secure a
large steamship bunkering business, by putting
in these cranes and thereby minimizing the cost
of handling coal. After working through the
city council of Savannah we succeeded in secur¬
ing the consent of railroads owning terminals at
Savannah to abolish the wharfage on coal when
taken by steamers for bunker fuel. This we con¬
sidered an important step, as this wharfage
charge would have prevented us materially from
competing with other ports.
"In 3913 after much effort and many dis¬
appointments, we were successful in securing for
Savannah from the Southern Railwa}^ a bunker
freight rate of fifteen cents per ton over the
Hampton Roads rate, and right here we wish to
express our gratitude to the Southern Railway
for making it possible for us to put Savannah on
the map as a coal bunkering port. With abso¬
lutely no desire to appear egotistical I can tell
you that the securing of this rate was due en¬
tirely to my efforts and representations person¬
ally to the railroad and on'y after much work
and argument with them on my part. After se¬
curing this bunker rate from the Virginia mines,
the Clinchfield, Alabama, Tennessee and Ken¬
tucky coal fields were also given this rate. By
reason of this low freight rate it enabled us to
compete with Hampton Roads and other north¬
ern coaling ports and bunker steamers with much
larger quantities of coal — in fact giving them
complete bunker requirements for the voyage
proceeding on— several years back it being con¬
sidered a large order for a steamer to take 200
or 300 tons, whereas they now are taking any¬
thing from 800 to 1,000 tons. On this bunker
rate we are bringing down coal for steamers’
consumption by cars direct from the mines to this
port, whereas formerly the coal was shipped to
some northern seaport and then reshipped by
sailing vessels to Savannah ; this latter method,
as you can see, is absolutely antiquated and un¬
necessary.
“It is an error of public opinion that steamers
leave Savannah for bunker replenishment on ac¬
count of being unable to get coal at this port at
competitive prices with other ports on the At¬
lantic coast. As a matter of fact the only rea¬
son why steamers leave Savannah to go to other
ports for coal is because of cargo conditions or
being so heavily loaded with cargo that by taking
coal bunkers at Savannah they would be unable
to proceed over the bar and out to sea on account
of the excess draft. This, however, will in time
be corrected by the government giving Savannah
the deeper water that her commerce in justice
demands.
“It will possibly surprise you to know that a
steamer can coal at Savannah for approximately
the same price as Norfolk or Newport News,
notwithstanding the fact that at Savannah we
have a fifteen cents higher freight rate than these
ports and the coal must be lightered and put into
the steamers’ bunkers while they are loading
cargo, while at Norfolk or Newport News a
steamer goes alongside of the coal pocket and
makes this lighterage charge unnecessary.
“In the spring of 1914 we built four coal
barges which would enable us to barge coal to
Jackson\ ille. Charleston and intermediary points,
or to use in the harbor here for bunkering
steamers.”
The Dock Equipment of Taggart & Co. at Savannah, Ga.
No. 18]
THE BEACK DIAMOND
349
Anthracite Coal Facts.
In talking with various sales agents and whole¬
sale dealers throughout the west — that is, west
of Buffalo — the one complaint heard more often
than any other is :
“The coal is wet and dull and the trade will
not take it.’
This complaint refers to coal shipped in ves¬
sels from Buffalo. These same agents and deal¬
ers often go so far as to say: “We want a car¬
go of stove or nut or whatever size it may be
if you can ship us dry coal.”
Starting at the mines, probably considerably
more than half of all the coal produced is pre¬
pared at so called wet breakers. That is, the
slate and bone are separated from the coal by
means of water in the operation of jigging.
After being sized and cleaned, the coal is loaded
into railroad cars, about eighty per cent of which
are open cars and only twenty per cent box
cars. There is sufficient time during transporta¬
tion for the coal to dry out considerably pro¬
vided it is not rained on. As Buffalo has fre¬
quent rains, the open car coal is often soaked
just before being loaded into vessels.
As is well known, the coal is handled very
roughly in the present operation of loading onto
boats at Buffalo. As it is handled it is broken
and being wet the dust and smaller particles
adhere to the larger pieces, and of course give
the whole cargo a decidedly dull appearance.
It dries very little in the boat, is dug out when
it reaches its destination and is stored at once
in large piles in the storage sheds, where it dries
slowly. Since cargoes are being unloaded at in¬
tervals into these storage sheds from April to
the 1st of December, the loading and shipping
out of cars of wet dull coal is unavoidable.
The coal, whether wet and dull, or dry and
bright, is absolutely the same quality.
In hearing many men talk in the west, one
would get the impression that slate and bone is
put in or taken out of the coal after it leaves
the mines.
The coal that is shipped from the mines in box
cars does dry out on the road, and, of course,
often it does not rain for days, so that a whole
cargo made up of both open and box car coal
may be almost perfectly dry. This, however, is
entirely luck and, as can be seen from the fore¬
going, under present conditions the question of
whether the coal is wet or dry cannot be con¬
trolled by the operators at Buffalo or anywhere.
It is, then, unreasonable for the dealer or con¬
sumer to refuse or complain of coal merely be¬
cause it is wet and dull. The salesmen through¬
out the western country should spend all the
time and energy necessary to educate the peo¬
ple to the fact that this dull coal is exactly as
good, in fact, exactly the same quality as the
dry, bright coal.
Type and Size of Scale to Buy.
The introduction of the auto truck for deliv¬
ering coal is proving beneficial to the scale man¬
ufacturers but costly for the coal dealer owning
a yard.
In the older yards, the wagon scales with ca¬
pacities of from six to twelve tons are rapidly
being condemned and replaced by modern scales,
of much larger capacity; while the new yards are
practically all being equipped with modern large
capacity scales.
Some such remark as this is often heard : “My
wagon scales will no longer do their work; what
shall I put in,” or “I am building a new retail
coal plant, what size and type of scales would
you suggest?”
It seems to be the consensus of opinion that
what is known as the auto truck or track pat¬
tern type of scale is the correct thing to buy,
with a weighing capacity of twenty tons. This
scale is built like a railroad track scale and full
steel construction should be specified. In this
full steel construction wood is used only for
the nailing pieces on top of the structure steel
beams, and the plank platform.
In these scales the weight is all carried on
concrete piers inside the foundation walls instead
of being hung on the walls at the four corners
of the pit.
There is a difference of opinion as to the size
of platform. Most of the old scales are from
seven to eight feet wide and sixteen or twenty-
two feet long. On the sixteen-foot scales the
wagon is weighted without the horses, while
on the twenty-two-foot scales both wagon and
horses are weighed. Weighing both wagon and
horses seems to be more universally used
throughout the country than weighing the wagon
only. It is the opinion of many that a sixteen-
foot platform is a little short for trucks, and
practically all agree that scales should be nine
or even ten feet wide. One of the large hard
coal companies is now installing twenty-ton scales
with 9xl8-foot platforms in some localities and
in other localities scales with 9x22-foot plat¬
forms.
As a suggestion a scale order should read
somewhat as follows : “1 20-ton auto truck
scale with full steel construction, 9x22-ft. plat¬
form built of white oak, scale to be furnished
and erected complete, including concrete founda¬
tion. concrete to be 1-3-5 mixture.” Such a scale
built by one of the responsible manufacturers
should cost complete, including the foundation,
between $500 and $.’)50.
A Brown Collaboration.
Residents along West Madison avenue are get¬
ting all fussed up about a couple of chickens in
Brown’s new coal office, opposite W. 91st street.
They are not ordinary chickens — they are stuffed.
One is covering a nest of eggs, in a bunch of
hard coal, and the other is evidently waiting a
chance to do likewise. In the window is a sign
which reads “We, too, would like to lay in your
coal.”
Some folks ask if they are “hard-boiled eggs,”
by reason of the hard coal. Others want to know
if Brown is going to “cut-cut-cut the price of
coal.” Some say that as the chickens are stuffed.
Brown is trying to stuff the public. Some say
“If you’re going to buy coal. Brown would like
to ‘pullet’.” Others have an idea that Brown is
going into the poultry-feed business, and others
think that Brown has a “hen on” in his new coal
yard.
Others “cackle-ate” that Brown is going to
lay for his competitors — but in that case he won’t
have any chance to crow, for there is no rooster
in the window. As Brown has always handled
“egg coal,” many are wondering what the nest
in the window has to do with business generally
being “slack.”
Personally, we can’t figure it out. If the hens
indicate anything, it looks as if the virtue of the
argument lay in advertising a warm nest in
which the hens coal-laborate with Brown on a
hard proposition. It is a coal day when Brown
can’t hatch out something new, and although we
can’t figure out eggs-actly the relation between
the hens and the anthracite, it strikes us that as
Brown wants to “lay in the coal,” and the hens
are brown-leghorns, which are good layers, it
is a pretty good sample of doing things up brown.
— Kid Ackutt in the Cleveland Review.
Selecting a Trade Name.
How the animals got their names is one of the
first sources of wonder to the average young
child. The naming of battleships and Pullman
cars is equally interesting to older people, though
it is a safe prediction that the present Kuropean
war has opened up sufficient sources of supply
to provide names for all the ships and all the
cars that will be made for years to come.
•Available trade names for coal, however, are
by no means plentiful. The requirements for a
good coal trade name are : That it must denote
unusual excellence of quality; that it must lend
itself to pictorial representation in the form of
an emblem of some kind ; and that it must not be
incongruous. It should catch both the eye and
the ear. It must avoid the sentimental, because
there is nothing sentimental about coal ; it must
avoid the grandiloquent, because there is nothing
very impressive about coal in a commercial sense ;
it must avoid the ludicrous, because that would
gradually come to bore or disgust both the sales¬
men, who would be burdened with the job of
talking up the product, as well as the buyers,
who would have to have the name fired at them
by the salesmen. In short, there must be suffi¬
cient dignity and conservatism about the name,
so that neither salesmen nor buyers would sicken
on it. In other words, it must be a name that
would “wear” well.
The force of The Harlan Coal Company of
Louisville, Ky., from the president to the office
boy, and including all the bookkeepers, typists,
and clerks, have been pondering the philosophy
of trade names and other names during the past
two months. The company in August instituted
a “suggest-a-name contest,” to secure a trade
name to distinguish the product of their mines
in Southeastern Kentucky from other good, bad
and indifferent coals which are being put on the
market by various mining operations in Harlan,
Bell, Perry and other counties.
The Harlan Coal Company, or rather, its asso¬
ciated companies, which direct and manage the
mining operations, opened up mines in Harlan
County several years ago, being pioneers in that
newly opened field. When their interests ac¬
quired land in that section there was not a sin¬
gle other mining operation, and when they put
the first of their product on the market, it seemed
simple and natural to sell it as “Harlan coal.”
Its reputation and demand increased steadily and
rapidly. Meanwhile, other mines were opened
up here and there in Harlan county, several dif¬
ferent seams being operated, and every conceiv¬
able method of mining and preparation being
employed, with the consequent wide variation
in the commercial value of the product.
Then the Harlan Coal Company felt constrained
to further identify their coal, and they did so
by calling it “S. & M. Harlan Coal,” the initials
being those of two members of the company who
were largely interested in the original develop¬
ment work. However, this did not seem satis¬
factory, as good, bad and indifferent coals in
greater number and to a greater tonnage, were
continually being put before the trade so that it
was finally decided that there was no escape from
the duty of selecting a distinctive trade name
which would designate specifically the coal pro¬
duced by The Harlan Coal Company mines.
As the company sells this coal in sixteen differ¬
ent states, invitations to suggest a name were sent
to 4,400 retail coal dealers in Florida, Georgia,
South Carolina, North Carolina, Tennessee, Ken¬
tucky, Indiana, Michigan, Ohio, Missouri, Ne¬
braska, Wisconsin, North Dakota and Minnesota.
-A carload of block coal was, offered as a prize
to the dealer who first suggested the name ac¬
cepted by the company.
Names poured into the Louisville office by the
hundreds. Day after day these names came in,
frequently backed up by letters and arguments
as to their advertising merits. The suggestors
used every possible device of the imagination.
They took the names of the mines, of the com¬
pany, and of the members of the company, and
spelled them backwards, forwards and upside
down. They made all kinds of combinations of
syllables, taken from the various names and com¬
posited into one more or less harmonious word.
They ransacked geographies for names of rivers,
counties, mountains, seas, volcanoes ; canvassed
the heavens for stars ; dragged rivers and oceans
for fish ; searched the air for birds ; and delved
into the recesses of the earth for every gem and
(Concluded on page 353.)
350
THE BLACK DIAMOND
[October 30
The Hocking Valley Rate Hearing Postponed.
Columbus, Ohio, October 28. — {Special Corre¬
spondence.') — At the close of the usual afternoon
session on Wednesday a long adjournment of the
Hocking Valley rate hearing was taken, the date
for further hearing being fixed for November
22. Lack of time for preparation was pleaded by
both the Hocking Valley and the Toledo & Ohio
Central railways. It was argued that they had
not had sufficient opportunity for checking up
figures in the exhibits submitted by the plaintiff.
In fixing a new date, the Commission gave more
time than was asked for, suiting its own conven¬
ience in taking care of other cases.
Mr. Hillman took the stand again on Wednes¬
day morning, explaining on direct examination
a series of exhibits showing the result of the
examiners’ inquiry into the cost of hauling coal
over the Toledo & Ohio Central from the as¬
sembling point of Corning to Toledo. The sys¬
tem of determining the amount and proportion
of the various factors entering into the haul was
similar to that used in connection with the Hock¬
ing Valley exhibits. The distance between Corn¬
ing and Toledo by the Eastern, or short, division
is 184 miles, and the present coal rate per ton is
$1. By Mr. Hillman’s figures the actual cost of
hauling a ton of coal between the two points,
including assembling charges at Corning and ter¬
minal charges at Toledo, is 47.87 cents. By the
same averages it was set forth that the rate from
Corning to Columbus, based on actual cost, is
24.19 cents. The rate now in existence is sixty-
five cents.
The entire day was consumed in examining
Mr. Hillman by Attorney Boyle, of the Sunday
Creek Company. The latter has no other wit¬
nesses to introduce, but three remain yet to be
examined on redirect. The Hocking Vally’s de¬
fense will begin very shortly after the hearing is
resumed in November.
Mr. Hopkins Examined
Columbus, Ohio, October 23. — {Special^Corre-
spondence.) — An entire day was given to W. M.
Hopkins, of Chicago, the first witness called Fri¬
day morning. He stated that he was a rate ex¬
pert, employed by the Sunday Creek Company,
but having no connection with the board of ex¬
aminers appointed by the commission. Several
exhibits prepared by him were introduced as evi¬
dence. Their special object was to show by di-
. rect reasoning that the Hocking Valley coal rate
from Nelsonville to Toledo was too high. It
was his conclusion that the rate should be sixty-
seven cents, instead of eighty-five cents.
The witness claimed an experience of twenty-
seven years in railroading, his longest connec¬
tion being with the Minneapolis & St. Louis rail¬
way, of which he was freight agent. His last
position had been with the traffic bureau of the
Chicago Board of Trade.
Taking the year ending June 30, 1914, the ex¬
hibits set forth the following with respect to the
Hocking Valley railway: Total revenue tons of
freight, 10,487,048 tons; total revenue tons of
coal, 7,272,194 tons, the per cent of coal to the
per cent of freight being sixty-nine. Total
freight revenue $5,601,381.91 ; total coal revenue,
$3,653,122.41, the per cent of coal revenue to
freight revenue being sixty-five. With regard to
coal revenue it was stated that 54.16 per cent of
the total was on local coal, which had only 40.72
per cent of the tonnage.
He arrived at his figure of sixty-seven cents
as being a just rate by applying to the Nelson-
ville-Toledo haul the ton-mile expense and profit
which accrued from an equal distribution over
all the tonnage of both foreign and domestic coal
hauled for the distance under consideration.
In the hands of Mr. Wilson, chief counsel for
the railroad, Mr. Hopkins admitted that his fig¬
ures regarding assembling and terminal expense
were not the result of his personal investigation,
but had been taken from the reports of other
experts submitted as evidence in former cases
governing the same haul under dispute. In the
matter of tables concerning other lines, on hauls
of about the same distance as that between Nel¬
sonville and Toledo and used to show the alleged
injustice of the latter, Mr. Hopkins was handled
quite severely by the attorney. This was partic¬
ularly true in the matter of hauls into Chicago
from certain Illinois and Indiana points. By
omitting the terminal rate which prevails there,
Mr. Hopkins was accused of knowingly quoting
a proportional rate for a through rate.
The commission adjourned until Tuesday
morning. The most important incident of the
day, though forming no part of the records in
the present case, was the filing with the commis¬
sion of rate cases by operators of other fields.
The Pittsburgh Vein Operators’ Association en¬
tered formal complaints against the Wheeling &
Lake Erie, Baltimore & Ohio, the Pennsylvania
and the New York Central Lines. The petition
was signed by W. R. Woodford, of Cleveland,
president. The Cambria Mining Company, op¬
erating in Belmont county, took similar action
against the Pennsylvania. O. P. Gothlin, of Day-
ton, a former member of the old Ohio Railroad
Commission, acted on behalf of the plaintiffs.
These petitions are interpreted to mean that the
Sunday Creek Company is not fighting lone¬
handed, but that the campaign for lower rates
is to be state wide.
Columbus, Ohio, October 22. — (Special Corre¬
spondence.) — Cross-examination of Mr. Hillman,
rate expert, was concluded late Thursday after¬
noon. He had been on the stand the greater part
of three days. Aside from the facts having been
brought out of his services being paid by the
Sunday Creek Company and the sum received,
nothing of special interest developed under the
fire of the defense. The time was almost wholly
taken up with a technical discussion of the ex¬
aminers’ report, piecemeal. A recess was taken
until Tuesday morning. It was announced by
the prosecution that the redirect examination of
Mr. Hillman would be deferred until later, and
that it would call W. M. Hopkins to the stand.
During the week the lobby, while not as large
as on the first day, has held up well. There have
been comparatively few coal men present, in
fact, no representative operators from out of
town. A number are expected to be on hand
later, according to the theory that the action of
the Sunday Creek Company is backed by other
large coal companies of the state, and that the
rate fight is to be general. Visitors have been
chiefly attorneys and railroad traffic men, here
for the purpose of observation. Judge S. H.
West, of Cleveland, and William N. King, of
Columbus, have been present, taking notes in
the interests of the Toledo & Ohio Central. This
road is partly defendant in the action against the
Hocking Valley, as it was formerly a part of
the Hocking Valley system, though now owned
by the New York Central lines, and over it was
returned to the mines a large majority of the
empties from the Toledo docks. A separate ex¬
hibit in connection with this road has been pre¬
pared by the examiners and will be submitted to
the commission during the course of the hearing.
Judge George B. Okey, chief counsel for the
United Mine Workers’ officials, the original
plaintiffs in the case, and his associate C. _ A.
Radcliffe, a former secretary of the commission,
have been in constant attendance, though taking
no active part. The Mine Workers have been
officially represented by President John Moore
and Secretary G. W. Savage. Among traffic men
present were two from the Baltimore & Ohio,
comprising H. A. Cochran, Baltimore, coal
freight agent, and C. R. Wright, Cleveland, coal
and coke agent. E. Briggs, of the Wheeling &
Lake Erie, was also a Cleveland visitor.
A “Sensation” Nipped.
Phil.vdelphia, October 27. — (Special Corre¬
spondence.) — A fellow named Barker, one time
chief engineer of the Bureau of Charities in this
city started a mud slinging campaign directed
politically at the Rogers-Corr Company, who in
1914 furnished Lykens Valley buckwheat coal to
the general hospital. The gang-papers, since last
Saturday morning fairly frothed over in the
story. Barker’s affidavit making most serious al¬
legations against a member of the coal company
were printed in detail. He even had the temerity
to declare that he had been offered money to
"keep his mouth shut.”
The upshot of the charges and counter charges
that flew thick and fast was for both sides to
make an appeal to the legislature to use the
money that had been set aside to probe retail coal
prices and conditions in this and other sections
of the state. That evidently was not in the
program for the speaker of the house has de¬
clared that such an investigation could not be
gotten under way.
Barker had declared that the hard coal sup¬
plied the hospital was of such a grade that he
had to put fourteen boilers in operation while
only twelve should have been used.
Over a period of nine months, which Barker
alleged a poor grade of coal was used. Dr. S.
Lewis Ziegler, director of the hospital, traced the
records and found that 1,200 tons less than the
year previous had been used. The coaj man so
far has been vindicated in the eyes of the people
and Barker, “the man-out-of-a-job,” has not been
able to make a case.
Only in September the Rogers-Corr Company
was awarded a contract for coal furnished the
city pumping station at Lanier’s Point. This is
to be placed “on the donation plan,” which means
that even though city councils have not appro¬
priated money to pay for the coal, the coal com¬
pany is willing to trust the city and hope to be
paid for their coal — some day.
R. S. F. Feeney Marries.
This Saturday, at the East Baptist Church,
Philadelphia, Pa., Mr. R. S. F. Feeney will be-
corne a benedict. The happy young lady is Miss
Edith Griffith, one of the most winsome of the
Quaker city’s young ladies.
Immediately after the ceremony the happy pair
will board the Florida Limited to spend a honey¬
moon along the east coast of that state and in
Cuba.
The groom is a member of the firm of H. H.
Lineaweaver & Co. and is its office manager. He
has been connected with the Lineaweaver Com¬
pany for the past six years.
Tax Law Unconstiutional.
The act of the Pennsylvania legislature
levying a tax of two and one-half per cent
on anthracite coal was declared iinconstitu-
tional by the Pennsylvania supreme court
at Pittsburgh on Thursday.
The coal companies have collected about
nine million dollars since this act went into
effect.
Justice Stezvart in his decision said in
part:
“When the necessary effect of the legis¬
lation is to create inequality of burden as
zve here see it, are those complaining of
the justice to receive no other anszver than
that zvhile the constitution promises them
equality in the matter of taxation that be¬
cause it failed to place restriction upon the
legislature’s right to distribute the tax it
collects that therefore the ptirpose of the
legislation is not to be inquired into? If
constitutional requirements are to be cir¬
cumvented by such simple and easy process
of reasoning the question may yet be asked
derisively of the constitution ‘zvhat is alt
this zvorthf’ ”
No. 18]
THE BLACK DIAMOND
351
What Dealers In Many Cities Are Doing.
Alabama.
Huntsville. — The Munn Coal Company of this
city has recently purchased the property of the
Spring City Coal Company.
Arkansas.
Little Rock. — The Thomas-Adams Fuel Com¬
pany was recently organized in this city with a
capital of $10,000.
Connecticut.
Bridgeport. — The Harlem Wood & Coal Co.,
with a capital of $3,000, has recently been or¬
ganized in this city.
Illinois.
Rockford. — Barker & Whipple is a new firm of
this city, engaged in the retail coal, lumber,
cement and building material business.
Rutland. — The Hakes-Lyon Coal Co., with a
capital of $5,000, has recently been organized.
Sterling. — The People’s Ice & Coal Company
will now handle coal along with ice.
Tilden. — The Tilden Coal Co. is a new corpo¬
ration of this city with capital stock of $1,000.
Jacksonville. — J. A. Paschall & Company have
purchased the retail coal business of J. F. Green
& Company.
Moline. — The Moline Fuel Company will suc¬
ceed in the retail coal business of Shallberg
Brothers, having purchased the business a short
time ago.
Melvin. — Chas. Inkster of this city will enter
the retail coal and grain business, having bought
the interests of McClure & Brotherton of Guth¬
rie, Illinois.
Bloomington. — Charles Cunning, having bought
out the Conkel Coal Co., is going to handle all
grades of coal this winter on a very large scale.
Monmouth. — Bowker-Smith Co., with offices
located on S. Third street and Fifth avenue, is
the name of the old Layton Fuel & Material Co.,
the latter being bought out by Mr. N. D. Bowker
and J. S. Smith of this city.
Atlanta. — Mr. James 1. McKown will enter the
retail coal and grain business, having recently
taken over the interest of Mr. J. A. King of the
firm of Applegate & King. Hereafter the com¬
pany will operate under the name of Applegate
& McKown.
Atwater — Business is good here and collec¬
tions are fair. Crops extra good, but much
grain is spoiling in the fields. — -W. L. Enslow.
McVey — S. W. Barnes is “snow-birding” at
this point.
Rockford — E. H. Warren has entered the
coal and transfer business here, with a yard
on the C. & N. W. R. R.
Indiana.
Mooresville. — E. M. Alexander has entered the
retail coal business lately.
Bristol. — V. Griner & Son have taken over the
business of the V. Griner Lumber & Coal Co.
South Bend. — The Community Coal Company
has recently been incorporated with a capital of
$5,000.
Indianapolis. — The Reliance Coal & Grain Co.
with capital stock of $10,000 has recently been
organized.
South Bend.- — W. O. Schlabach has recently
moved to this city from Ligonier, Ind.
Gas City. — The Elevator Coal Co. has pur¬
chased the yards and retail coal business of J.
S. Lowe & Son, and Jas. Crawford & Son.
Elkhart. — The Calvert & Krai Coal Company,
with yards located on the New York Central
Railroad, is a new business of this city.
Buckeye — J. H. Smith & Son have purchased
the grain and coal business formerly owned
by S. S. Faust. Mr. Faust operated the busi¬
ness for over fifteen years. The new owners
are erecting a new coal yard and 25,000-bushel
grain elevator.
Brookville — Manufacturing plants here are
running full time, and as crops are good and
prices high, most of the coal dealers here are
“wearing a smile that won’t come off.” — Fred
C. Werst of Peter Werst & Co.
Iowa.
Clarinda. — C. F. McPherrin will succeed O. A.
Graham in the retail coal business.
Lake City. — L. D. Weirick has succeeded
James Bruce in the retail coal business.
St. Charles — Smith & Son Lumber Co. have re¬
cently purchased the retail coal business of N.
O. Anson.
Essex. — The Essex Lumber & Fuel Company
has purchased the retail coal and lumber yard
of Rotton & Nelson.
Waterloo. — The Diamond Coal Company,
owned by Mr. E. F. Watkins, will succeed G. W.
Bunn & Sons in the retail coal business.
Waterloo. — B. H. Byvank, of the Byvank
Transfer & Storage Co., will succeed Kurtt &
Voelker Co. in the retail coal busineiss, having
purchased same recently.
Mason City. — O. J. Watt, who has been en¬
gaged in the retail feed and flour business in
this city, has added coal to his list of products.
Kansas.
Randolph. — The Union Lumber Company has
bought out the retail coal and lumber business of
the Randolph Lumber Co.
Kentucky.
Louisville. — The Elbert Coal Company has been
incorporated with a capital of $5,000.
Louisville. — The Asbury-Kenney Coal Co., with
capital stock of $10,000, has been organized re¬
cently.
Massachusetts.
Ipswich.^ — Wm. G. Horton has purchased the
coal and wood business of C. C. Caldwell.
Bedford. — The Middlesex Coal & Grain Co.,
with a capital of $25,000, is a new corporation of
this city.
Florence. — W. N. Potter Sons & Co. have pur¬
chased the retail coal, grain and cement busi¬
ness of Mrs. Chas. O. Parsons.
Easton. — The John J. McCarthy Co. is the name
of a new company recently organized here with
a capital of $25,000, and to deal in coal.
Boston. — Staples & Bell, Inc., has been organ¬
ized lately. The products of the company are
grain, fuel, and hay. The capital is $101,200.
Michigan.
Bellvue. — The Bellvue Lumber & Coal Com¬
pany has bought out the Hager Lumber & Coal
Company.
Jackson. — The Fletcher Coal Company, with
capital stock of $500, was recently organized.
Ludington. — Johnson Brothers, a new concern
of this city, have located their retail coal yard
in South Charles street.
Greenville. — Greenville Coal Company is the
name of a new firm which recently bought out
Smith & Booth in the retail coal business.
North Adams. — F. 1. Williams has taken his
son into business with him. The business will
be conducted under the name of F. 1. Williams
& Son.
Minnesota.
Rochester. — The Kruse Lumber & Coal Com¬
pany has recently entered the retail coal and lum¬
ber business.
Faribault. — President Theo. Thom of the Farm¬
ers’ Co-operative Elevator Co., purchased the
wood and coal business of Ferdinand Cromer.
The business will be conducted with that of the
elevator company.
Missouri.
Springfield. — W. W. Bacon Feed & Fuel Com¬
pany is now carrying on the retail coal business
formerly owned by W. 1. Rhodes.
Charleston. — A. W. Robertson Coal Co. is the
name given the old Hart & Robertson company
on the retirement of Mr. Hart.
Nebraska.
York. — John F. Groshan has engaged in the
retail coal, grain, and lumber business, having
bought out the Van Wickle Grain & Lumber
Co.
New Jersey.
Elizabeth. — Nathan Finkel & Son is a new re¬
tail coal and lumber business of this city.
Trenton. — Hutchinson-Hawk Company have
purchased the coal business of Peter Spracklen
of this city.
Jersey City. — E. A. Kiesewetter Coal Co. is
a new corporation of this city. The capital is
$80,000.
New York.
Highland. — The Johnston Coal Co. has re¬
cently been organized with capital of $10,000.
Schuylerville. — H. E. Wanmer & Company is
a new coal and wood business of this city.
Whitestone. — Keeler’s Coal Pockets is a new
corporation of this city. Capital, $5,000.
Port Richmond. — The Timmerman Coal & Ice
Co., with capital of $10,000, has recently been in¬
corporated.
Queens. — Richmond Hills Coal & Ice Co. was
incorporated with capital stock of $50,000.
Highland.— The Johnston Coal Company has
lately been incorporated with capital stock of
$10,000.
Great Neck. — The Elmhurst Coal Company has
recently been incorporated with capital stock of
$125,000.
Massina. — Henry Allen Feed Co. has recently
purchased the coal business of the Rutherford
Coal Company.
Beach Ridge.- — W. J. Miller has recently pur¬
chased the retail coal business of Arthur L.
Mower of this city.
Buffalo. — Loyal Spring & Sons, located at 24
Ramsdell avenue, is now conducting the coal busi¬
ness formerly owned by N. F. Berndt.
Buffalo. — John K. Kerr, Inc., is a new organiza¬
tion of this city. Lumber and coal will be the
products handled. The capital stock is $10,000.
Dolgeville. — The Dolgeville Coal Company,
owned by William J. Gibson, will carry on the
retail coal business formerly owned by F. J. Beck
& Co.
Babylon. — The Suffolk Lumber Company has
recently been incorporated to handle coal and
lumber and agricultural implements and machin¬
ery. Capital stock $15,000.
Mt. Vernon. — Getes & Robitzek, Inc., is a new
corporation of this city. The products of this
company will be coal and wood. The office and
yards are located at 44 North Railroad avenue.
Ohio.
Xenia. — Chas. R. Bales has recently purchased
the retail coal, grain and feed business of Dewey
Bros.
Antwerp. — D. F. Toms of Garrettsville, O., has
purchased the retail coal and ice business of A.
A. Pointer of this city.
Madison. — The Madison Coal & Supply Co.,
which has been organized recently to conduct a
retail business, was incorporated for $15,000.
Olmsted Falls. — The Olmsted Falls Coal &
Lumber Company, with capital stock of from
$5,000 to $15,000, has lately been organized.
Pennsylvania.
Philadelphia. — Jarden Coal Company, with a
capital of $10,000, is one of the new corporations
of this city.
Reading. — John C. Cook is a new name added
to the list of retail coal, grain and lumber deal¬
ers of this city.
York. — The American Ice & Coal Company has
been organized lately by J. Edgar Holland with
yards located on the Pennsylvania Railroad at
State and Hay streets.
South Carolina.
Springfield. — Springfield Fuel Company has just
been incorporated. The capital of the company
is $5,000.
Charleston.-— The Campbell Fuel Company is a
new corporation of this city with capital stock
of $10,000.
South Dakota
Chester. — The Chester Grain Company, owned
by Mr. S. Gregory, has recently purchased the re¬
tail coal and grain business of W. H. Kellogg &
Son.
Veblen. — L. C. Brekke, O. P. Akre and L. T.
Bruods have filed incorporation papers for the
Farmers’ Co-operative Grain & Fuel Co. The
capital stock will be $35,000.
Tennessee.
Jackson. — A. M. Burns has recently started in
the retail coal and wood business in this city.
Knoxville. — The Mutual Service Coal Co., with
capital of $15,000, has been organized lately.
Memphis. — The Sipsey Coal Sales Company is
a new jobbing company recently incorporated for
$5,000. The firm will handle and sell coal, coke
and fuel of all kinds, wholesale and retail.
Texas.
Plainview. — Allen & Bonner have started in
the retail coal and grain business, having leased
the yards of Shipley & Shipley.
Wisconsin.
Lander. — The Lander Coal, Feed & Auto Com¬
pany has recently been formed in this city.
Plymouth. — The Plymouth Lumber & Fuel Co.
has lately been organized for $45,000.
Green Valley. — The Green Valley Lumber &
Fuel Company is a new corporation of this city
with a capital of $15,000.
Eau Claire. — Charles Wendt will handle coal in
connection with his wood business hereafter.
352
THE BEACK DIAMOND
[October 30
Annual Meeting of New York State Association.
The annual meeting of the New York State
& Western Pennsylvania Coal Merchants’ As¬
sociation was held in Syracuse on Friday and
Saturday last week. The attendance was large.
Promptly at three o’clock on I'ridiiy after¬
noon, h'. II. Peach, president of the tissocia-
tion ctilled the convention to order,
'I'he report of Chas. B. Staats, treasurer,
told of the finances of the association from
.lime 1st, P>I4 to September 1st, 11)1.'). On
Jttne 3rd, 1914, there was a lialance on hatul
of $9.1,'), and membership fees collected since
of $1,15.'), brought the total up to $1,11)4.17,
while ex])endittires from June, 1914 to August,
1915 totalled $1,149.15, leaving a balance on
hand on September 1st of $15.02.
M. N. Clement, general manager of the
Coal Merchants Mutual Insurance Company
and commissioner of the association, made a
talk on Compensation Insurance. The New
York State compensation insurance act went
into effect on July 1st, 1914. During the
past year, the coal dealers formed their own
mutual insurance company, and a great many
of the dealers began insuring in this fund,
effective from July 1st, 1915. Mr. Clement,
who has been identified with the mutual in¬
surance association operated by the brewery
interests, was chosen to head the mutual in¬
surance company organized by the coal men.
In effect, Mr. Clement said; “Alutual insur¬
ance is cheaper than insurance in stock com¬
panies. It is very much cheaper than in¬
surance in the State Fund. The rate for in¬
surance as fixed by the state, which must
be the same for all insurance companies, is
$3.50 per $100 payroll for coal dealers. In¬
juries to employes of coal companies are
rare.” Mr. Clement said that while the mu¬
tual association formed by the coal dealers
had only been in existence since July 1st, and
that his report would only cover that period,
it shows that premiums amounting to $28,000
had been received, and that one-fourth of
this, or $7,000 would be considered, there¬
fore, as covering the receipts for the first three
months. During this period, the total expen¬
ditures including all losses, doctor and hos¬
pital bills, operating expenses, salaries, etc.,
and in fact all charges, amounted to $2,110,
leaving a balance of $4,890, which could be
re.garded as profit for the first quarter.
Mr. Clement thought that insurance in the
mutual company could be carried for one-
half of what the State Fund would charge
to carry the same insurance. This showing
already made was a credit to the association.
The co-operation of the coal dealers was
needed to have the legislature modify the
present compensation act, which had been
dictated by organized labor.
Arthur F. Rice, commissioner of the New
York City Coal Merchants’ Association, read
a paper on wholesale competition. Mr. Rice
in his talk made some very interesting state¬
ments regarding a recent investigation made
of the New York Coal Merchants’ Associa¬
tion and its work, which resulted in a clean
bill of health being given it. He went on
to show what had been accomplished for the
New York dealers through the co-operation
of the wholesale companies.
A paper by Frank FI. Beach, president of
the association on “Cost of Doing Business,”
called for a lot of discussion.
To enumerate what it cost a dealer to do
business, he outlined some of the costs, as
follows:
Taking a plant to do say 10,000 tons per
year. Capital required would be $10,000 at
a minimum. In some cities it might run five
times this. Say at $10,000, this would mean
an interest charge of $500 per year, or five
cents per ton. Depreciation of plant, figuring
the life at twenty years, would mean $500
more per year, or another five cents per ton.
Cost of delivery, Mr. Beach said would run
between forty and seventy-five cents per ton.
He would give fifty cents as an average. A
weigher would mean nine cents per ton. An¬
other man to help the weigher, would cost
nine cents per ton rriore. Compensation in¬
surance two cents per ton. Other charges, as
follows: General office expenses, twelve cents.
An outside man to solicit orders and look
after collections, ten cents. For advertising.
Plans of Organizing an Insurance De¬
partment Were Discussed — A Long List
of Interesting Addresses and Reports.
five cents. Proprietor’s salary, fifteen cents.
Bad accounts, two cents. Shrinkage of coal,
discounts to customers, etc., five cents. All
in all, Mr. Beach figured $1.58 per ton as the
cost of handling a ton of coal in the average
retail yard.
“A dealer’s profits,” he said, “should be
added on after j'ou know what it costs you
to put coal in your customers bin,”
On Friday evening the meml)ers of the as¬
sociation were guests of the Lehigh Valley
Coal Sales Company, Delaware, Lackawanna
& Western Coal Company, The Philadelphia
& Reading Coal & I ron Company, Messrs.
Dickson & Eddy, Williams & Peters, Mills-
paugh & Green of Syracuse, and McEwean
Coal Company of Albany, and the Schenectady
Coal Company of Schenectady, at a banquet,
which was held in the ball room of the Onon¬
daga. Two hundred and fifty attended this
banquet. Vice-president H. G. Dewey, pre¬
sided as toastmaster.
• At the Saturday morning session, Edward
Schmidt, president of the Long Island Coal
Dealers’ and Building Material Association,
talked on organization. Mr. Schmidt pro¬
posed a plan for building up the state organ¬
ization into a very useful body, organizing the
cities and country separately, dividing the
state into zones, so to speak. Mr. Schmidt
said that local conditions were not ideal, due
to the fact that the coal dealers were usually
unacquainted with their competitors.
Mr. Schmidt believes that a great deal can
be accomplished for the association by having
local meetings. There are a lot of problems
that are sectional, which he believes can be
solved by having the dealers of a iiarticular
section work together.
Following his talk there was a general dis¬
cussion, in which his plan for organizing the
state according to zones, was favorably com¬
mented upon,
Charles Dorrance, general superintendent of
the Hudson Coal Company, made a talk on
costs of operating. Twice a month said Mr.
Dorrance, an analyzed cost sheet covering
each of the twenty-eight operations of the
Hudson Coal Company, was placed on his
desk. On these sheets appear J50 separate
items of cost. He knows to a fraction what
it costs to mine a ton of coal, and when
these cost sheets are presented, they are
studied closely to find if there has been an
increase, and if so, plans are immediately
formed to overcome this increase. The mines
that are under his supervision produce betweep
five and six million tons annually. Shortly,
Air. Dorrance believes, they will have a cost
sheet presented more frequently, weekly or
even bi-weekly. In the cement trade he said
operators have a daily , cost sheet. He said
that in coal mining the difference between
profit and loss is becoming smaller and
smaller.
Air. Dorrance said that there were two
great coal reserves in the anthracite field, one
in the northern field and the other in the
southern field. The southern field has the
larger of the reserves, this field having large
veins, in narrow valleys, with heavy pitches,
rhese veins go down to 2,000 and 3,000 feet,
and the problem of mining coal at these lower
depths is still to be solved. Dealers can rest
assured, he said, that it is going to cost more
to mine these lower measures than it is cost-
m,g to mine coal today.
In the northern field the coal measures are
in wide flat basins, but the veins are thin.
The great problem at present in the northern
field is that of transportation. Also in the
northern field they are now mining small veins
from twenty-ei.ght to thirty inches, which were
not feasible to mine some years ago. In min¬
ing these thin veins, contract miners have
to be paid higher rates.
Mr. Dorrance said that the new Pennsyl¬
vania compensation act will cost the Fludson
Coal Company approximately $500,000, which
\\'ill mean ten cents a ton on their produc¬
tion. Nearly fifty per cent of this is steam
coal which must sell in competition with bi¬
tuminous coal, and it is but fair to assume
that the cost of insurance must be placed
against the domestic sizes, which would mean
an increase in price of about twenty cents a
ton.
I he pumping problem is becoming more
serious, said Air. Dorrance. This is due to
the fact that there are now many subsidences
of surface, and more water is getting into the
mines. Throughout regions he said that the
amount of water pumped out of the mines av¬
eraged thirteen tons to each ton of coal, and
this is gradually becoming heavier.
In mining a thirty-inch vein, he said, that
they face very serious cost problems. They
have to drive the gangways full standard
height, and to do this, they have to take out
two of three feet of bottom rock, which is
rock contractors work. This is expensive and
slow. Also in some of these thin veins, forty
to fifty per cent of the coal has to be left
in the ground to support the surface.
Another serious problem is the transporta¬
tion of coal underground. While the thin
veins are being worked out and gangways are
being driven further, trackage has to be in¬
creased. At their Olyphant plant there are
125 miles of railroad underground. This
means that twenty-five men are kept con¬
stantly at work to keep this track in condi¬
tion so that it can be used. It is very ex¬
pensive to keep trackage underground, be¬
cause the acid mine water does a great deal
of damage to the rail and connections. At
the Colebrook mine, they have fifty-two miles
of track underground. At their twenty-eight
operations they have as much railroad track
underground as has the entire Delaware &
Hudson system on tlie surface.
Air. Dorrance said that the dealers should
appreciate that the anthracite companies can¬
not give them the same grade of coal that
was mined thirty years ago. It is impossible
today to give the bri.ght, glossy coal that
was shipped in the past. The quality and ap¬
pearance has become poorer. The cream of
the coal has already been shipped. It is ap¬
preciated that all the coal that goes to mar¬
ket is not perfect, but he told of the great
difficulties that the operators now have in
mining coal from .great depths. The compa¬
nies have to make allowances for coal that is
not up to standard, and it means an extra cost
on all coal, as all allowances go on the cost
sheet.
Mr. Dorrance believes that very shortly an
increase in the price of coal at the mine must
come aliout due to the increase in operating
costs.
Recently the association elected Air. J. F.
Ringueber.g to be field secretary. Mr. Ringue-
ber.g came with the association just about a
month ago. In the future he will travel
throughout the state, and his work will be to
increase the membership. At the Saturday
morning session. Air. Rin.gueberg read a paper
on “system.”
The election of officers and directors for
the ensuin.g 3'ear resulted as follows:
F’resident, Frank H. Beach. Binghamton,
N. Y.; first vice-president, H. G. Dewey,
Gloversville, N. Y.; second vice-president,
Carl L. .-Amos, Syracuse, N. Y.; treasurer,
C. B. .Staats, Albany, N. Y.; secretary, L. V.
Shepard, Elmira, N. Y.
The directors elected were: J. E. Van
Deusen, Gowanda, N. Y.; J. Scott Baldwin,
IHmira, N. Y.; Fred Davey, Amsterdam, N. AC;
W. 11. Upson, Lockport, N. AC; C. G. Hickett,
Auburn, N. Y.; M. T. Bannigan, Utica, N. A’.;
A\C C. Baxter, Troy, N. Y.: B. LC Taylor,
Olean N. AC; E. \C Sidell, Poughkeepsie,
N. AC; .A. A. Do.vle, Rochester, N. Y. ; E. B.
.Ashton, Saratoga, N. Y.; R. A. Downey.
Oswego, N. A^.;‘ and James Gaffers, Schnec-
tady, N, AC
Upon the invitation of E. B. Ashton of
■Saratoga .Springs, this city, was selected for
the place of the next annual meeting.
Following the Saturday morning session, all
of the dealers were guests of the Hudson Coal
Company at a delightful luncheon which was
served at the Onondaga.
No. 18]
THE BEACK DIAMOND
353
PRICE OP COAL
IN DOLIARS PER
TON OF 2,000
POUNDS
(A)
-IOC
- 110
• 120
• 130
• 140
• 150
16C
170
■ 180
•190
''■j^P'.OO
TOTAL COST
OF COAX
(B) (C)
WEIGHT OF COAL-
IN POUNDS
(D) (S)
100 ‘
-- 250
• $3.00
3.50
' *14.00
450
- |5.00
350
• $6.00
1<P
lOj^
15j<
25j^
30^
40f
50^
60^
' 70j^
80^
90^
1.00
1.50
2.00
2.50
3.0
60^
70^
80^
90^
11.00
$1.50
150 --
^ ^ ioo.-- -
•$2T00
$2 .60
$3.00
$4.00
$6.00^
'$6 .00
$7.00
$8.00
$9.00
$10.00
$15.00
$20.00
$25.00
$30.00
250
300-
350
400-
450
500-
550
600,
700-
800.
900m
1000^
This Chart Figures the Price on Odd-Sized Lots of Coal.
The chart reproduced herewith will be
found useful by all coal men for computing
the cost of any weight of coal at any price
per ton.
All the dealer needs is a straightedge, or a
string that can be pulled straight, as indicated
by dotted lines on the chart, by means of
which he can solve two problems.
For instance, at $3 per ton, .300 pounds of
coal will cost thirty cents. It is important
to note that columns “B” and “D” are used
Draft the Important Factor.
(Concluded from page 345.)
in the feed door. Then the progress of the fire
was watched for about a half hour.
For the first fifteen or twenty minutes there
were miniature explosions at the rate of one
about every thirty seconds. The furnace, in
fact, behaved very much like a slow moving
locomotive. Little puffs of smoke came out of
the draft slide in the feed door at regular in¬
tervals. All the while a volume of smoke was
pouring up the chimney. This did not all come
from the bituminous coal. Rather, the color
of part of it indicated that some of it came
from the coke. This fact was afterwards proved
by firing the coke alone in the same way. It
was true that the coke gave off quite a volume
of smoke when the fire was smothered.
There was not much point to this experiment
other than to indicate what already had been
said, that intelligent firing of a household furnace,
with anything but anthracite, demands that the
together. Or, using column “E” for 3,000
pounds of coal, we use column “C” and find
that the cost of 3,000 pounds is $3.
Again, 3,300 pounds at $3.50 per ton costs
$5.77. Do you see? Always use columns
■‘C” and “E” together, anl “B” and “D” to¬
gether. Using “B” and “D” we find that 330
pounds at $3.50 per ton will cost about fifty-
eight cents. The eight cents is “estimated”
easily with the eye.
Just a little practice with the chart and you’ll
he an expert. N. G. Near.
glowing bed of coal shall not be covered com¬
pletely at any time.
Losing the Fine Coal.
Mr. Stahmer proves a point which had come
up before. He says that in starting a fire he
lost quite a percentage of the fine coal through
the grate bars for the first hour. Of course, it
it possible to handle that matter in the way he
did, namely, to let the coal fall through into
a clean ash pit and then shovel it again into
the fire. That, however, is not a good method.
Perhaps a better one is that employed some
years ago by Edward H. Taylor, who used
some large coal to get a bed or coke on his
grate bars and then fired the fine coal on top.
The coke prevents the fine coal from falling
through. This can he done in any number of
ways. If mine rim coal is used, it is always
l)ossible to pick out some large sized pieces. If
the small sized coal only is used, it perhaps will
he best to get a small amount of large sized
coal to use in starting the fire.
In connection with Mr. Stahmer’s experiment,
quite a number of objections have been made to
the use of New River or Pocahontas coal be¬
cause, while it gives an ideal fire, it is so easy
to track the coal through the house. Mr. Stahmer
and others make this suggestion.
“The delivered price of smokeless mine run
is so much below that of any coal which com¬
pares with it in value, a householder can well
afford to buy a loose fitting pair of overshoes
which he can put on over his house shoes when
he goes to fire his furnace. The firing having
been done, these can be taken off and left in
the basement, while he goes upstairs with clean
shoes. The dirt, as a matter of fact, has no ob¬
jection when it can so easily and cheaply be
overcome.
“The other objection to the coal is the fact
that the dust from it is inclined to rise from
shoveling and fly through the house. This can
be overcome by the use, every few days, of an
ordinary sprinkling can of water. That not
only keeps down the dust, but actually makes
the coal burn better.”
Field of the Retailer.
(.Concluded from page 349.)
every precious stone or metal known to science.
Kentucky history was searched for the names
of distinguished presidents, governors, secretaries
of state, explorers and authors. Altogether some
900 names were suggested by coal dealers and
carefully tabulated by the office force.
From the beginning the name “Black Beauty”
seemed to attract consideration. All the judges,
from the president to the office boy, had read
the book, “Black Beauty.” Evidently, also, a
lot of the coal dealers had read the book, for be¬
fore the end of the contest nine different dealers
from different states had all suggested this name.
Possibly the recollection of the book influenced
the judges to some extent in their attraction for
the name of the horse who told such a simple
and convincing story in the interest of kindness
towards animals, but possibly also the fact that
a big Louisville race meeting was on, with the
city filled with men who had traveled for thou¬
sands of miles from east, north, west and south,
to witness Kentucky’s historic sport at its most
historic race course, brought to mind the fact
that the horse is significant of a Kentucky tra¬
dition which has spread not only throughout the
country, but all over the world. The “Black
Beauty” advocates, therefore, argued that the fig¬
ure of a thoroughbred race horse was an en¬
tirely appropriate emblem to apply to a thorough¬
bred Kentucky commercial product, and that this
emblem joined with the pleasing name of “Black
Beauty’’ best answered the requirements of the
contest.
The first to suggest the name Black Beauty
were Messrs. Fisher Brothers of New Paris, Ind.,
and L. & N. 63589, containing block coal, was
shipped to them.
Western Maryland Car Order
The Western Maryland Railway Company
has placed with the Pullman Company an
order for 2,000 hopper cars, to cost approxi¬
mately $3,000,000. This is one of the largest
car orders placed by any of the eastern roads
for some time. It shows what this company
expects in the way of increasing its coal and
other tonnage from the opening of the mines
of the Consolidation Coal Company and on
the coal tracts the company itself controls.
The company is building branch lines to reach
the new openings of the Consolidation Com¬
pany, both in \Vest Virginia and in Penn¬
sylvania.
The present order is for steel hopper cars
and the contract was secured by the Pullman
Company in competition with the other car
building concerns., ft is said the railway
officials will endeavor to push the delivery of
the cars as the supply is hardly sufficient on
any of the roads in that territory to meet the
steadily growing demands.
The new equipment will place the Western
Maryland in .good position for the handling
of this traffic which it is now getting in
volume.
J. J. Burke, who for eight years was con¬
nected with the marine department of the New
England Coal & Coke Company, has resigned to
accept a position of Boston representative of C.
W. Chadwick & Co., a New York ship broker¬
age concern.
354
THE BLACK DIAMOND,
[October 30
PUBIiISHED EVEBY SATURDAY BY THE
BIiACE DIAMOND COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOND COMPANY (INC.)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, October 30, 1915.
INDEX.
Special Articles.
Page
Draft the Important Factor in a House Furnace.... 345
News and Hints About Retail Advertising . 346
Emigration vs. Immigration . 347
Plant of Taggart & Co. at Savannah, Ga . 348
Field of the Retail Dealer . 349
Hocking Valley Rate Hearing Postponed . 350
A “Sensation” Nipped . 350
R. S. F. Feeney Marries . 350
Tax Law Unconstitutional . 350
What Dealers in Many Cities Are Doing . 351
Annual Meeting of New York State Association.... 352
This Chart Figures the Price on Odd-Sized Lots of
(ioal . 353
Editorial . 354
Labor Outlook in Central Pennsylvania . 355
Association Reports . 355
News Local to Chicago . 356
Death of S. J. Patterson . 356
Facts Which Determine Clur Export Prospects . 357
■Army of Coal Miners . 15
Market Reports.
General Review and Chicago . 358
Pittsburgh, Indianapolis and St. Louis . 359
Denver and Oklahoma . 360
Detroit, Cleveland and Birmingham . 361
New York . 362
Philadelphia and Duluth . 363
New England, Buffalo and Baltimore . 364
Hocking Valley . 15
Making the Furnace Behave.
A month ago we printed an article sug¬
gesting that the ordinary household fur¬
nace has great flexibility which can be
jiroved and improved by a little experi¬
menting. The natural suggestion was that
the retailers should get acquainted with the
furnaces in which their coal is to be burned.
Before urging this suggestion further it
is, perhaps, well to take into account the
matter of policy involved. Most retailers
will say: “What is the use of teaching the
householder fuel economy, when by doing
so we may teach him to save a ton or so of
coal in the winter and therefore cut our¬
selves out of that business? That is edu¬
cating the customer at our own expense.”
On the contrary, isn’t it possible that if
the householder buys your coal and does
not get a warm house, he will conclude that
your coal and not his furnace is at fault ?
W'ill he not go some place else to buy some
other coal? You thus will lose not only a
ton or so in the year, but all of his business.
The householder is going to get more
comfort and satisfaction out of his furnace
than he has been getting. No dealer can
stand between him and that result. If the
dealer does not help the householder to get
that greater comfort he is going to the re¬
tailer who will. That is the other side of
the argument.
Now about furnace flexibility. It will be
found on study that this is not in the fur¬
nace itself, but in the conditions surround¬
ing the furnace. The Are pot does not burn
the coal. It can’t. The size of the fire pot
means nothing at all except that it indicates
how much coal can be fired at one time, and
hence how long it will hold a fire.
The conditions surrounding the fire pot
are everything. That is, in order to burn
coal you must have air. To get air
you must have “draft.” One house will
have a good, even draft all of the time ; an¬
other will only have a good draft when the
wind is blowing from a certain direction.
One will give a strong draft ; another a
weak one. The draft is the principal factor
in a furnace.
If the draft is strong and if a large sized
coal is used, the likelihood is that the air
will pass through the fire pot without doing
any real work, wherefore the householder
will have a big fuel bill but no heat. If he
wants more heat and smaller fuel bill, he
must use some small coal with his big in
order to slow down the air movement.
But, if the draft is weak, the obvious
suggestion is to use a larger size of coal.
That will give the right mixture of coal and
air and therefore will give fuel economy,
or more heat for the money. If the draft
is not good, it is money saved in the long
run to fix it.
This matter of draft is one which can¬
not be decided by any known rule. It is
impossible to measure the chimney and tell
by the height and the diameter how much
air will be pulled through the fire pot. Such
measurements, although most carefully
taken, mean nothing. They are supposed
to mean everything but, unfortunately, they
do not. It is impossible, therefore, by tak¬
ing measurements to tell what size of coal
should be used in a furnace.
The only thing to do, really, is to try
the furnace out. It should be tried first
with large coal, because, as a rule, the draft
is weak. If that does not fit, then moderate¬
sized coal should be tried. Later various
mixtures of sizes can be tested to see which
one gives the best results.
Our own experiments suggest that when
the draft is quite strong, different sized
coal should be used for different tempera¬
tures. That is, size of coal should be used
in addition to damper and check draft to
control the air. For example, when a slow
fire is desired, we use large sized anthra¬
cite coal exclusively and open the check
draft. When a hotter fire is desired, we
supply more air and mix in some small coal
with the large.
Another suggestion presents itself so
soon as a man starts to experiment. Many
furnaces are really efficient but they never
really warm a house. That is, they may
deliver hot air to the ducts or hot water
to the pipes and still the place is not warm.
The fault clearly is not in the furnace, but
in the windows which let in enough cold
air to blow all the heat away. If the re¬
tailer finds that difficulty, it is up to him to
suggest not that the people burn more coal
but that they put on weather strips. Often
that is the only way that he will convince
the customer that he is not delivering a
poor quality of coal.
This question of furnace flexibility and
fuel economy is one which appeals strongly
to the householder. The retailer is going
to make a permanent customer only by
making definite and money-saving sugges¬
tions along these lines.
Two Opposing Courses.
Heretofore most of the retail dealers
have had only one purpose behind their
business program — to increase the price of
coal so that they can get the desired profit
while handling a moderate tonnage. In
fact, “getting the price” has been the sole
aim and only ambition of all business men.
A man is not considered a good merchant
unless he can get a big price for his wares
and make the people like to pay it.
In pursuing such a course in business,
two serious obstacles are to be overcome.
Consequently two serious objections exist
to the program itself. One of these is that
it requires a large amount of wizardry to
convince a buyer to pay a big price for a
thing and really like to pay it. Only a very
few men in all the history of business have
ever been able to do it, even though literally
millions have tried. A most conspicuous
example of such success — conspicuous be¬
cause he had to divide honors with so few
— was the late Marshall Field.
His store can not only “get the price,”
but actually makes the people like to pay it.
Most men, when they try to duplicate his
success, succeed in making the customers
hopelessly dissatisfied and cause them to
cry out, “extortion.”
The difference is this : Marshall Field
made his store a great spectacle. He sold it
to the people over and over again. Thus
they paid for the show and not for the
goods. Other men tried to get the price
for the goods alone. They did not provide
the show and hence failed.
The second serious objection is: When
a man succeeds in “getting the price” he
invites ruinous competition. Marshall
Field evaded them only because he spent
so much money on his magnificent store.
No one but another of his kind could dupli¬
cate his investment and display.
What safeguarded Field & Company,
however, does not protect the average re¬
tail coal man. He has nothing magnificent
about his yard and equipment to make that
display which will attract the people. On
the contrary, his few sheds and wagons can
be duplicated by anyone with any capital at
all. Therefore, when the coal man gets a
good profit, he has no way to protect it.
And the fact of profit alone is enough to
invite an overwhelming flood of competi¬
tion.
The alternate course open to the coal
merchant is to cut the cost of handling coal
and then to cut the price down to a point
where no man can meet it unless he em¬
ploys similar ingenuity in management and
like devices for handling coal. The only
objection to such a plan is that to so equip
a yard the retailer must have some money.
The retailer, when he trys to “get the
price,” is wooing a fickle goddess. That is,
he is running counter to the wishes and
inclinations of the people. He is trying to
get them to pay a big price for a thing when
their natural inclination is to pay a small
price. He is under constant necessity,
therefore, to charm them in order to keep
them in a mood to buy at his price. He
knows all the while that they are likely at
any moment to cut and run, leaving him
without patronage.
The man who cuts both cost and price
and uses that as his big appeal is wooing a
constant goddess because he is falling in
line with the innate desire of humanity
which is to get everything at a minimum
price.
No. 18]
THE BLACK DIAMOND
355
Labor Outlook in Central Pennsylvania Field. Association Reports.
Philadelphia, October 27— (Special Corre¬
spondence.) — The presence of John P. White,
international president of the United Mine Work¬
ers of America in the Central Pennsylvania fields,
has turned the full glare of the limelight on that
section. Right at this particular time when cars
are scarce and the men to work the mines are
thinning out and the orders for immediate de¬
liveries are pouring into the selling agencies, a
horse-fly in the soup is about as welcome, in
thought, as what the possible effect of the ener¬
getic Jawn P. spells out.
With the central Pemisylvania operators it is a
serious matter. The first streak of profit that has
come their way, since goodness knows when, is
within hand’s grasp. Yet there is the menace of
April 1st (when the agreement expires) always
confronting them.
White is putting in “his best licks” right at the
present time to gather as many of the miners
in District No. 2 under the wing of the union,
and the word has gone forth, as soon as the
foundation is laid the meeting of the delegates
will be held and the extent of the demands ex¬
posed.
Eastern consumers of bituminous coal from
central Pennsylvania have been inclined to dis¬
count the possibility of a strike in this section.
Within the past couple of weeks there has been a
great change in the sentiment. This has been
traceable to a source. The Pennsylvania has
locked up more money than is the capitalization
of a national bank or two in coal piles that they
have stocked for emergency’s sake.
Again, the very condition of prosperity before
alluded to, is another factor in the situation that
may be called a harbinger of strikes. Men who
are glad of work are not men who lay down their
picks. And that brings this particular discussion
to the point of argument pro and con.
While many of the persons interviewed
were of the opinion that there would be a
strike, yet they gave as their reason, “because
it is to be expected.” For forty years wiseacres
predicted a European war, but he would have
been the seventh son of a prophet who could
have named the Sarejevo incident as being the
firebrand.
Those who gave their opinions that there will
be no strike have been more specific. Here is
set down the points of argument on which they
are willing to base their case :
First, the financial condition of the United
Mine Workers. It has been repeatedly shown
that their treasury was sadly depleted, and that
District No. 3 has not been, at all backward in
the heavy loans that it has made to the national
organization in the long weary fights that have
been made in Ohio and Colorado. Of itself the
district could not sustain a strike at this time
with 40,000 or more men to take care of.
Second, for over two years the miners have
been on short time and on poor wages and this
has been even more acute in the past year. The
disposition is to go ahead and work a full day
now that there is a prospect of labor and car
shortage and industrial conditions that will war¬
rant full time for those who want to work.
Third, wages are as high as can be stretched
by the bituminous operators. At the present time
pick mining is on a basis of seventy-two cents a
ton. machine mining at forty-five, and day labor
at thirty-three cents an hour. While the size of
the veins are smaller in District No. 2 than in
other sections, this, however, is said to be as
high if not a higher wage than is paid anywhere
in the other union coal fields. Again there is a
limitation that even labor must regard, and that
is competition. Non-union and even union fields
within railroad rate zones nearby will have the
whip-hand if the mining cost is increased to any
perceptible degree.
Fourth, a lack of cooperation between the men
in District No. 2 and the anthracite union work¬
men. It is claimed that in the central Pennsyl¬
vania district there is still a keen remembrance
of the contributions that were made to the hard
coal workers during the strike of 1902 and the
failure of the anthracite men to reciprocate when
came on the strike of 1900.
Fifth— a sociological reason — that much of the
“galavanting” element in the miner’s ranks has
been done away with and that the bulk of the
men that are now in District No. 3 are horne
loving through long association and are not dis¬
posed to go off at half-cock.
To these might be added a long string of in¬
dividual ideas, but it is not the individual idea of
one particular area that can he jilaced in the bal¬
ance where the aggregate totals more than 70,000
men to be affected.
Now let’s take the reverse side of the ques¬
tion. Let’s see what those who can smell strike
in the air base their conclusions on.
First, they say that this is presidential year,
one time that statesmen and professional poli¬
ticians are inclined to do everything to satiate
labor when it goes on a rampage.
Second, that the shortage in men and the bet¬
terment of industrial conditions gives labor the
opening long sought to put pressure on big af¬
fairs that must have coal to produce goods that
make profit.
Third, that the expiration of the anthracite
agreement coming at this time is a whip that will
drive the operators into line, both in the hard
and soft coal regions.
Fourth, perfection of organization in the bitu¬
minous field, full working time and a long “stock¬
ing” season means plenty of money passing into
the coffers of the unions so that when a time
comes to strike there will be a rejuvenated bank
roll that will amply provide the sinews of war
for those whose interests it is to engineer a
strike.
That James Purcell, president of District No.
3, is a radical and that his following are willing
to match wits with the employers of labor.
While this takes in generalities it might be
well to look at the things that are being whipped
out in the labor camps at the present time. Rec¬
ognition of the union is one of the things that
the men say that they want most. It is estimated
that there are about 40,000 union miners in the
field and about 30,000 more who are not in the
ranks. Of this last number there are about one-
half, or 1.5,000, who submit to the check-off, leav¬
ing a like number who are working in mines
where unionism is not tolerated. And, it might
be said in passing, that a large number of this
last number are working for a company that the
labor leaders have sought for years to unionize.
That these could be or would be forced into
their ranks would be considered by union leaders
a great feat.
Next the labor people want to see the evil of
pick mining at machine rates done away with.
In District No. 2 this is said to be most flagrant.
Miners who have been forced into this sort of
work declare that they will fight to the bitter end
to break up the practice.
As in the hard coal fields there is a demand for
a new system of arbitration. The present um¬
pire, the labor men say, has not come up to ex¬
pectations, and with this is a long and tiresome
list of complaints.
Payment for dead work — taking down tops,
lifting bottoms, etc. — is another form of conten¬
tion, though this is not enough for the men to
go on strike for, but is something to fight over.
That the men have “stuck with the bosses”
when times were slim and when there was not
enough money coming in to the families to make
life worth living, and now that better prices are
paid for coal, they claim they are entitled to an
increase.
So much for the men. The Clearfield Bitu¬
minous Operators’ Association, with offices in the
Kurtz building, Clearfield, and with B. M. Clark,
Clearfield, as president ; C. H. Rowland, Phillips-
burg, vice-president, and John C. Forsyth, secre¬
tary-treasurer, have different views on the mat¬
ter. There has been a healthy rally to the mem¬
bership of the association within the past few
months and it is promised that there will be
plentv of opposition to any radical program that
the men may advance.
Receipts of coal in the city, according to re¬
ports filed with the Chamber of Commerce, dur¬
ing September were 2,136,139 tons of bituminous
of which 72,174 tons were by river and 3,063,955
tons were by rail. This compares with receipts
in September, 1914, of 1,978,632 tons of which
7,343 tons were by river and 1,971,289 tons 'were
by rail. In September this year receipts of
anthracite were 614 tons and coke 6,279 tons,
compared with 164 tons of anthracite and 4,571
tons of coke in September last year. The ship¬
ments out of the city compare as follows ; Sep¬
tember this year, 583,483 tons bituminous, 23,833
tons by river and 559,660 tons by rail, compared
with 453,817 tons of bituminous, 8,369 by river
and 445,448 by rail in September last year.
Anthracite shipments in September this year
were 572 tons and also there were 5,494 tons of
coke, while in September last year 509 tons of
anthracite and 2,424 tons of coke were shipped
out.
Knoxville Association.
T. O. Busbee of the Knoxville Retail Coal
Dealers’ Credit Association, reports that the
general business outlook for the coming season
in his city and vicinity is very bright, and that
this association is accomplishing much good
for its members. He further says;
“For the last two winters coal dealers of
Knoxville have not found business conditions
in this city favorable for making any money
to speak of, but I believe the majority of
dealers are anticipating a good business
through the coming winter.
“Virtually, all the retailers in Knoxville are
now getting fair prices for their coal and are
just waiting for the first touch of real winter
weather when coal will take another advance.
“The association is in a very good condi¬
tion, both financially and in co-operation
among the members. I say in good condition
for the reason that it is very difficult to keep
all the association members in line, and it re¬
quires a great deal of work and diplomacy
on the part of the secretary to keep all the
members enthused with the right spirit. The
two things that I consider most necessary for
the welfare of any association are the social
meetings and adjusting all complaints immedi¬
ately that are made to the secretary.
‘“The secretary has special police powers
and looks after the weighing of all coal, to
see that all parties that sell fuel comply with
the city ordinance governing the sale of this
commodity. He keeps close tab on every car
that is consigned to individuals, and if he
finds that this particular person uses a por¬
tion of the car and sells the balance to his
friends and neighbors, in violation of the city
ordinance, the guilty party is dealt with ac¬
cording to law. This method has proved
effective this year and next season we expect
to keep the carload business, other than
through the legitimate dealer, down to a mini¬
mum.”
M.-O.-I. Association.
Secretary B. F. Nigh of the Michigan-Ohio-
Indiana Coal Association reports the fact that
this association has taken in sixteen new mem¬
bers within the last thirty days, and expects even
a larger number of new members during the
next month as a vigorous membership cam¬
paign is being carried on.
He further reports that the claim depart¬
ment of the association is meeting with un¬
usual success, and that it has just made ad¬
justments in twenty different claims amount¬
ing to about .$400.
Mr. Nigh says : “Coal conditions seem to
be in great deal better shape than they were
at this time last year. There has commenced
to be a little shortage in cars on some of the
roads, and this with the coming of winter has
created a demand which, of course, is very en¬
couraging for the dealers. Prices are rather
firm, and there seems to be more stability in
the retail market.”
E. F. Whitnall.
Edward W’hitnall, who has been identified
with the coal and building material business
in ^Milwaukee for the last twenty-five years,
is president of the Whitnall Coal & Supply
company. He has associated with him, Sum¬
ner T. Whitnall as vice-president, John T.
Whitnall as secretary, Charles H. Swan as
treasurer., Harold E. Whitnall, J. B. Whitnall,
Aid. Robert J. Kempf, Robert S. Fischer and
William L. Gradt. A well equipped office and
display room at 217 Caswell block furnishes
every facility for rendering efficient service to
all of their patrons.
W. E. Beaty, for a number of years presi¬
dent of the Dow Coal Company, of McAlester,
Oklahoma, which company was placed in the
hands of receivers last March, has within the
week secured the output of Pocahontas Coal
Company’s mines at Haileyville, and will place
the output through the M. B. Schofield Com¬
pany, Oklahoma City. The Pocahontas mines,
producing an excellent grade of Wilburton
vein coal, have been idle for some months, but
will resume operations immediately.
356
THE BI.ACK DIAMOND
[October 30
News Local to Chicago.
A number of suits have been entered against
b'red P. Howe, who has operated a coal yard
at Pullman for a number of years.
Henry E. Patrick, general sales agent of
C. M. Moderwell & Co., was in St. Louis on
Tuesday. He says business there is improv¬
ing because the factories are running fuller
time.
C. A. Reynolds, formerly with the Sunny-
side Coal Company, has joined the sales force
of the New Kentucky Coal Company, and has
been assigned to points on the Burlington
road in Illinois.
The Roberts & Shaefer Company, Chicago,
closed a contract Wednesday with the Camp¬
bell’s Creek Coal Company of Cincinnati, Ohio,
for a 300-ton per hour Marcus patent picking
table screen equipment for immediate instal¬
lation at Putney, W. Va.
Gale Conn, general sales agent for the Gil¬
more & Solomon Coal Mining Company at
Davenport, Iowa, moved his family and house¬
hold goods to his new Iowa home last week,
but before he had a chance to get settled a
fire destroyed his new home and its entire
contents.
L. Romanski, president of the Atlas Coal
& Coke Company, left the early part of this
week for a trip to the mines of the Wisconsin
Steel Company in Harlan county, Kentucky.
He stopped off a day in Louisville. Mr.
Romanski is representative in the northwest
of these particular mines.
It will be interesting news to the creditors
of the defunct Mueller Brothers Coal Com¬
pany to know that the assets of that concern
were sold this week to the California Avenue
Coal Company. It will be remembered when
the Mueller Company filed a petition in bank¬
ruptcy they scheduled assets of $9,533.66 with
liabilities aggregating $47,902.66.
F. C. Atwill returned the latter part of
last w'eek from an extended trip into the
northwest and reports conditions there are
growing more satisfactory all the time. Col¬
lections are better because the movement of
money is easier, the factories generally are
running on better time, and while retailers
are not buying coal extensively, they are
planning to do so as soon as weather condi¬
tions warrant.
The Chicago & Alton is experiencing an
acute shortage in freight equipment for the
lirst time in several years. The Blooming¬
ton car shops are working with a maximum
force and hours to turn out cars, but the de¬
mand IS far greater than the supply. Even
with the mild weather, there is a heavy de¬
mand for coal cars, and when cold weather
sets in the shortage promises to be serious.
The Illinois Central is also beginning to feel
the car stringency and for the first time in
several years is checking up the rated capacity
of the mines on its road.
A. B. Currie of Omaha, was in Chicago this
W'eek for a few days. Mr. Currie says dealers
have been backw’ard this year in Nebraska in
ordering their coal requirements, due to the
fact that the consumers have been lax in get¬
ting their bins stored with coal early in the
season. Because of the exceptionally wet
weather which has been experienced this year,
customers have objected to permitting the
coal dealer to drive across portions of their
yards, as the wheels cut deep ruts in the soft
.ground. Many prefer to wait until the ground
has frozen before having the heavy coal
wagons backed up to the coal bins. With
seasonable w'eather, Mr. Currie expects quite
a rush for supplies during November.
Clarence !£. Patrick, representative of C.
M. Moderwell & Co., at Rockford, Illinois,
spent Wednesday in the home office in the
McCormick building. In speaking of condi¬
tions in Rockford, he says that the factories
there have not been in better condition in
the last four years than they are right now.
Some of the leading factories in that point
are sold up for four months ahead of time,
w'hereas a short time ago they were running
on a hand to mouth basis, w'hile making a
terrific Struggle to get practically every order.
He called the name of leading manufacturing
concerns in that center and recited the con¬
dition of each and this lead to the conclusion
that the difficulty now’ is not to get orders,
but to get skilled workers. Naturally this is
increasing the demand for coal in that terri¬
tory, and the situation is very much improved.
Frank E. Doherty, -president of The Black
Star Coal Company left Chicago, October 25,
tor the Pacific Coast. He sent a message
enroute from Ncw'ton, Kansas, which should
bring cheer to tlie coal shipper who might be
in doubt as to the w'eather we will have for
the next five months. According to Mr.
Doherty he interviewed an old duck hunter
who had just come in from a successful trip
who said: “Just look at that ‘fur.’’’ “It’s
twice as long as it was this time last year,
and longer than I can remember for a good
many years back. “When the ‘fur’ on ducks
and similar migratory fowl gets as long as
that you may be sure there’s a pretty stifif
winter ahead. The first advance of winter
will arrive within the next two weeks.’’
The regular meeting of the Chicago Coal
Merchants’ Association was held at the rooms
in the Plymouth building, on Tuesday after¬
noon of this week. Several matters of inter¬
est came up. Among other things there was
a discussion of the proper zone in which the
association could work and gather members
and it was concluded that this could prop¬
erly include the Chicago switching district.
Homer Jones also brought up the question of
.getting together some of the executives to
talk about details of retail accounting and a
meeting was arranged for Friday afternoon of
this week. The committee on speakers re¬
ported that the next meeting of the associa¬
tion on November 9th, will be an evening
meeting, when a dinner will be served at
some point to be announced later and when
an entertaining program will be given. More
detailed information about which will be
given later. There was also an interesting
discussion of the weight -estion leading
to the suggestion that some way should be
found by which the retailers could pass on to
the consumers the apparent shortages in coal
as delivered in the average retail yard.
One sales agency which handles quite a
.good deal of coke made the statement on
Wednesday of. this week, that the coke mar¬
ket as concerns furnace and foundry sizes is
showing a runaway tendency. From all re¬
ports nothing like the present situation has
been seen for years, not even in the boom
times in the steel trade of 1903, As a matter
of fact there is at present a demand for
more coke than the ovens can put out. This
is traceable first, to the tremendous demand
for war materials from Europe, and second,
to the increasing production of iron and steel
products for use in this country. Coke oven
output is not ilexible enough to meet all
of the requirements, and as a consequence
the price of coke is rising rapidly. Within
the last week fifty cents a ton was added to
the delivered price of furnace and foundry
grades, and in some cases coke is selling at
$1 a ton higher than it was last week. These
prices are not guaranteed beyond the day on
which they are quoted because very much
higher prices are expected to prevail in a
short time. In fact there are predictions now
that furnace and foundry coke will, within
the next month, go to $5 a ton at the oven.
On Saturday night of last week the Kan-
tishna Club held a meeting and dinner at the
Hotel Planters. This organization proceeded
from the start to prove that it is both cos¬
mopolitan and neutral as a few facts will in¬
dicate. The bill-of-fare had an English roast.
French peas and German fried potatoes. On
the program were men bearing such names
as Fitzgerald, O’Brien, O’Malley, McCahey and
Bigane, while in the audience were Koeber,
Wiesse, Stahmer, Hildebrandt and Klinenberg,
to say nothing of an odd mixture of other
nationalities such as is represented by the
name of Peterson. While there was an abun¬
dance of Irish oratory and Irish song. The
club proved it is neutral by singing Die
Wacht Am Rhein under the leadership of
Koeber, Stahmer and Wiesse. The dinner and
the program w’ere most unusual when viewed
from the standpoint of what is customary in
coal trade gatherings. In the first place fully
seventy-five per cent of those present rep¬
resented members of the trade who are seldom
seen at ordinary coal trade gatherings. The
Kantislma Club has brought out repre.senta-
tivcs of the trade not heretofore seen often
in any other .general movements. The en¬
tertainment was also unusual. That is, while
Charles Jessup lead the singing of the ragtime
songs with which most of the men were
familiar, the program itself ran more to the
lyrics, which gave a more sober tone to the
entertainment. William Fitzgerald of the
(-'hesapeake S: Ohio Railway made an address
on cars. He talked about the car situation
from a historical point of view, and while
ordinarily’, this would be stupid, he handled
the subject in such a way as to make it most
interesting. There was no touch of oratory
at all in what he had to say, but there was
much of interest which caused the audience
to follow his remarks. Hon. James C. O’Brien,
assistant states attorney of Chicago also de¬
livered an address. He spoke about what the
states attorney’s office is doing in the way
of checking up on thieves who pilfer coal
and other things from cars. E. R. Foley acted
as toastmaster. The understanding is that
this is to be one of five similar dinners to
l)e held by this club within a year and the
club is to be congratulated on the success of
its first undertaking.
Death of S. J. Patterson.
Word came from Dayton, Ohio, the latter
part of last week that Stephen J. Patterson
had died at the age of seventy-five years. He
was, as everyone knows, one of the best
known coal men in Ohio, and for that matter,
the country, having been engaged in the coal
business for upwards of thirty years.
Mr. Patterson’s first business in the coal
trade was as a retail coal dealer, but he sub¬
sequently expanded that to include the agency
lor the anthracite coal produced on the Penn¬
sylvania Railroad known as the Susquehanna
Coal. His agency not only included his own
immediate neighborhood, but quite a territory
north and south.
In more recent years, Mr. Patterson has
been known for his connection with Weyan-
oke Coal & Coke Company, a West Virginia
Iiroducing concern, and prior to that time and
until his death, he was one of the leading op¬
erators in the Jackson Hill field of Ohio.
Other producing companies in which he was
interested were the S. J. Patterson Pocahontas
Company and the White Star Mining Com¬
pany.
Mr. Patterson was always interested in re¬
tail coal associations, and was the organizer
of one of the first of them in the west, which
was known as the 'Western Coal Dealers’ As¬
sociation. He subsequent!}' was interested in
the Wholesale and Retail Coal Dealers’ As¬
sociation of Ohio, and naturally was inter¬
ested in its successor, the Michigan, Ohio, In¬
diana Coal Association.
Mr. Patterson was a brother of John H.
Patterson, the founder of the National Cash
Register Company, in which he was interested
in a small w'ay, financially. At his death, Mr.
Patterson left his business to his son, Dunn
Patterson, who has been associated with him
for a number of years.
John W. Lowe in the Old Colony building,
had beer, associated with Mr. Patterson for
quite a number of years, being financially in¬
terested in some of his mines and being the
western sales representative of his company.
He went to Dayton to attend the funeral,
which was held on Monday of this week.
The Daniel Boone Coal Company, which was
recently formed to take over the North Fork
Coal Company and the Ross-Petry Coal Com¬
pany of Hazard, Ky., is planning to increase its
output. This company, in addition to purchas¬
ing the above mining plants, has taken over 1,200
acres of coal land, which carries the genuine
Hazard No. 4 seam of block coal. This company
has recently made a contract with the Scottdale
Machine & Manufacturing Company, Scottdale.
Pa. for a modern loading plant, which will have
a capacity of 2,000 tons per day. The tipple will
span the main line of the Lexington Eastern
Railway and the coal will be open on both sides
of the railway and brought to one tipple.
Chas. G. Bowman, Hazard, Kentucky is president
of the company; H. H. Heiner and Geo. H.
Barker, of The Maynard Coal Company, Co¬
lumbus, Ohio, are general manager and secre¬
tary, respectively. The product of The Daniel
Boone Coal Company, is marketed exclusively
liy The Maynard Coal Company, Columbus, Ohio.
No. 18J
THE BEACK DIA3IOND
357
Facts Which Determine Our Export Prospects.
The Export Situation
The movement of bituminous coal into ex¬
port via the Atlantic seaboard ports is held
in check now, due to the shortage of vessels.
High freights prevail both from American and
Welsh ports Init on the other hand, Welsh
coal prices have slumped heavily, so that
they still retain an advantage, especially for
European business.
Welsh ports are very bare of ships, due to
the withdrawal of the Greek merchant fleet,
and freight rates have advanced. This short¬
age of boats has brought about an overproduc¬
tion of coal, so that second admiralties are now
obtainable at 19s to 19s 6d, as against 24s to
25s several weeks ago, and 32s to 34s only a
few months ago. Other Welsh coals can be
obtained from 17s 6d to 18s 6d.
Cardiff shippers are now paying freights
about as follows:
To Genoa, 39s to 40s; to Port Said, 45s; to
Marseilles, 47 fcs; to Boulogne, 17s; to Pa¬
lermo, 40s; to the Platte, 40s.
American shippers are called on to pay 65s
to 70s to the West Coast of Italy; 60s to 65s
to Marseilles; 55s to 65s to Spanish ports; 40s
to 50s to South American destinations.
English newspapers and trade papers, alarmed
at the shortage of tonnage, are suggesting that
the government take action to compel the re¬
turn to English ports of numerous British
tramp steamers that are now engaged in trad¬
ing between America and South America and
the Mediterranean. One reason given for the
desire on the part of British ship-owners to
trade from the United States, is that they fear
requisition of their vessels by the government
if they traded from home ports.
Coal prices are just about steady at the coal
loading ports; New River and Pocahontas be¬
ing held at ,$2.85 at Hampton Roads, and good
Pennsylvania coals at $2.60 at Baltimore.
The Welsh Coal Trade.
The Cardiff correspondent of the Liverpool
Journal of Coninverce, in its issue of October
15th, says of the Welsh coal situation:
“The most important factor dominating the
market at the present time is the tonnage posi¬
tion. The withdrawal of Greek tonnage came
at a most inopportune time. Tonnage was
needed in abundance to carry grain to Europe,
and high freight rates caused a large number
of vessels to take on long distance charters.
Consequently, with the large amount of ton¬
nage under admiralty control, there are not
sufficient bottoms in active commission for
the world’s oversea trade and the shortage
of tonnage at the Bristol Channel ports has
adversely affected the coal trade. The very
high freight rates ruling from Cardiff have
restricted business, and stocks of coal have
accumulated to such an extent that intermit¬
tent colliery stoppages were more frequent.
The shortage of tonnage is not confined to
the Bristol Channel ports; it is world wide, and
has affected all export centers. The situation
with regard to the Welsh coal trade is now
becoming serious, and it is suggested that the
government authorities should compel British
shipowners to trade between Great flritain and
neutral countries rather than between neutral
countries only. A return to firmer conditions
on the Cardiff coal market is only possible
when the existing heavy stocks have been
cleared, and for such clearance a more ade¬
quate supply of tonnage is needed.
“As regards business for loading ahead
transactions were few. Buyers were disin¬
clined during the present time to arrange for
their future requirements, looking, in fact, to
still easier conditions, and taking hand-to-
mouth supplies. The high freight rates ruling
and the difficulty in securing tonnage were also
factors which prevented much business of im¬
portance being fixed up. As regards business
over next year, very little has yet been fixed
up, and it is highly probable that few buyers
or sellers would care to commit themselves
over long periods ahead during the present
abnormal times. No inquiries for forward
loading were reported this week.
“Superior Admiralty classes were nominal,
supplies being retained by the authorities. Or¬
dinary seconds, however, were plentiful and
quotations ruled at 19s to 20,s. Sellers, how¬
ever, were prepared to accept below these fig¬
ures, and 18s about represented the real mar¬
ket value. Ordinary coals were in proportion.
Dry coals were about the only steady counter,
these coals being in good demand as a sub¬
stitute for the very high-priced Swansea an¬
thracites. Best sorts ruled at 23s to 24s, and
ordinaries from 21s upwards. House coals
were nominally unchanged, but general weak¬
ness was observed in bituminous descriptions.’’
Recent Coal Freight Charters
Str. Andrea Castle (Ital.), Baltimore to Leghorn, coal,
p. t.
Str. Moldegaard, Baltimore to Havana, coal, p. t.
Str. Atland (Swed.), Baltimore to Sweden, coal, p. t.
Str. Fauna (Dutch), Hampton Roads to Trinidad, coal,
1^- .
Str. Poviga (Ital.), Philadelphia to^ Savona, coal, p. t.
Str. llarflete (Br.), Baltimore to Genoa coal, p. t.
Sell. Came K. Loop, Norfolk to San Domingo City,
coal, p. t.
Str. Washington (Br.), Philadelphia to Genoa, coke
and coal, p. t.
Sch. Geo. E. Dudley, New York to Macoris, coal, p. t.
Sell. J. Manchester Haynes, Philadelphia to Cay Fran¬
cis, coal, p. t.
Sch. R. T. Murphy, Philadelphia to Martinique, coal, $3.
Philadelphia September Exports
Exports of coal from Philadelphia during
the month of September, 1915, were as fol¬
lows :
Country — Anthracite. Bituminous.
France . .... 7,407
Italy . 2,100
Sweden . 4,284 ....
Canada . 1,298 75
Guatemala . .... 2,788
Newfoundland . 1,500 ....
Cuba . 4,470 40,435
Fr. W. Indies . .... 4,640
Brazil . ... 5,773
Venezuela . ■ ■■ 1,130
Porto Rico . ■ ■ • • 3,135
Tot.-il . 11,5.52 • 64,348
Curacao Coal Trade.
The American consul at Curacao, W. I.,
writes The Black Diamond, as follows:
“There is given below the exportation (sale
to steamers) of coal in Curacao since Jan. 1st,
1914, in quarters, together with the value of
this coal. Only American coal is sold here.
Quantities are metrical tons of 2,204.6 each:
, - 1914 - ,
Period — Ton.s. Value. Tons. Value.
First quarter . 10,363 $ 53,058 11,250 $ 62,758
•Second quarter . 10,183 .52,951 11,736 65,473
Third quarter . 15,606 86,103 12,496 79,472
Total . 36,152 $192,112 35,482 $207,703
Fourth quarter . 11,476 63,807
Total— year . 47,628 $255,919
“During the third quarter of 1914, there
were two Dutch warships here, while this year
there was none; furtliermore, since Sept. 12,
1914, the sale of coal to steamers is restricted
by law to what they may need strictly for
their own use.
“General business is somewhat dull, but not
very greatly reduced. No improvements have
been made within the year facilitating the dis¬
charge of ships.”
Pennsylvania Tonnage.
The Pennsylvania Railroad Company issues
the following statement of coal and coke car¬
ried on the Pennsylvania Railroad Company’s
lines east of Pittsburgh and Erie, for the
month and period ended September 30, 1915:
Jan. 1 to
Sept., Sept. 30,
191.5. Increase. 1915. Increase.
Anthracite coal,
short tons . 783,307 *200,135 7,603,051 *417,054
Bitminous coal,
short tons . 3,901,402 *148,700 31,678,900 *2,185,742
Coke, short tons.l, 152,668 419,189 8,378,576 816,718
Total . 5,837,377 70.354 47,660,527 *1,786,078
* Denotes decrease.
Florence, Italy, Trade.
The American consul at Florence. Italy,
writes The Black Diamond, as follows:
Anthracite or Welsh coal has risen in price
from $12 per ton on August 1st, 1914, to $21
on Sept. 30, 1915. This consular district is
not a separate customs district and its im¬
ports of coal can be estimated only. Italy’s
imports of coal in the year just prior to the
war were approximately 11,000,000 tons. This
consular district comprises one-tenth of its
population and area. Coal dealers state that
high prices and difficulties of other kinds have
reduced consumption of coal about forty per
cent. No American coal is sold in this dis¬
trict. Efforts have been made to obtain it
but the refusal of American companies to quote
c. i. f. prices instead of f. o. b. prices prevents
business and our exporters have lost a great
opportunity to enter this market on a large
scale. English coal is always quoted c. i. f. at
some Italian port. General business has been
greatly depressed since the beginning of the
European war and has not recovered to any
great extent. Only factories and houses mak¬
ing supplies for the army and navy are busy.”
Venezuelan Coal Trade.
The American consul at La Guaira, Venez¬
uela, writes The Black Diamond, as follows:
“The situation in regard to coal has not un¬
dergone any recent change.
“The only sort of coal imported to La Guaira
continues to be ‘Crown’ block fuel from Car¬
diff, which sells here for about seventeen dol¬
lars per ton and in Caracas for $24.00. The
only importer is the La Guaira Harbor Cor¬
poration, that company and the La Guaira-
Caracas railway being the principal consumers.
They have never manifested any intention of
changing from the block fuel, and to handle
a cargo of loose coal in this port would prob¬
ably be attended with difficulty.
“Some anthracite for use of gas producer
plants is imported in sacks. There are no
statistics available as none have been published
since the middle of 1914.”
Tells of American Plans.
Australian correspondence to the Colliery
Guardian of London reads as follows:
“The Trade Commissioner for New South
Wales in America has been making inquiry
as to the effects of the Panama Canal on the
west coast of America coal trade as it affects
New South Wales, and states that the prohibi¬
tion of the export of Australian coal to all
but those countries which were British pos¬
sessions or those of the allies has given a
distinct trade opening which interests in the
eastern states had been quick to see. Already
coal from the eastern states had been going
to South America, but not yet in large quan¬
tities, owing to the lack of shipping. There
was at present a great scheme on hand to
build fifty modern ships to ply between ports
of South America, Central America and the
United States. Half the cost of the enterprise
was to be financed in South America. The
ships would be allotted to ports in South
America on the basis that 1,000,000 tons of coal
per annum be contracted for. The establish¬
ment of such a line would be serious to Aus¬
tralian trade in coal, and would affect in the
matter of return freights Australian opportuni¬
ties in the LInited States. Many of the South
American countries were producers of raw
material, food products and metals which the
United States would take in return for coal
and manufactured products. The Trade Com¬
missioner does not regard the prohibition of
the export of coal as a factor in the matter,
being satisfied that under any circumstances
Australia is destined to lose her coal trade
with the west coast of South America.”
Panama Canal Opening.
Panama, October 26. — “Within three weeks
or a month the channel of the Panama Canal
will be open again to navigation,” said Donald
F. McDonald, formerly geologist of the canal
commission, who arrived here recently. “From
that time on the dredges can keep ahead of
the slides, provided something utterly unfore¬
seen does not happen. The work now going
on is the most effective that can he done in
the circumstances.”
Major-General Goethals, governor of the
Canal Zone, conferred today with Mr. McDon¬
ald and the latter made his prediction as a
result of liis study of the earth slides into the
cliannel during tlie last mouth.
The value of the coal production for 1914
for the Union of .'^outh Africa showed a slight
gain over that of the preceding year, the total
value of the sales amounting to $10,992,914. as
compared with $10,903,186 for 1913. The
Transvaal and Natal Provinces are the largest
producers of coal, the Transvaal sales for 1914
amounting to $5,600,000 and those of Natal to
$4,311,324, while the value of the Orange Free
.State output was a little under $1,000,000. n'he
sum realized on the coal product of the Cape
Colony was only a little in excess of $150,000.
358
THE BLACK DIAMOND
[October 30
General Review.
The Coal Business Is Booming Because
Business Generally Is on
the Upturn.
Two things are giving the coal trade an ap¬
pearance and a reality of prosperity such as
Pas not been seen for about four years. One
of them IS a general upturn in general busi¬
ness, which is now felt from the Atlantic to
the Rocky Mountains. The other is the in-
llucnce of the policy pursued by buyers all
summer to delay purchases.
'I'he most gratifying feature of the market
this week is evidence of a decided improve¬
ment in business conditions. Those who have
l)een watching the trade for some months have
seen that general business was coming out
from under the lethargy, which has bound
;t for three or four years. Indeed, the coal
trade and husiness, as a whole, have not had
much vim for the last seven or eight years.
.All through this month, however, manufac¬
turing concerns have been enlarging their
production programs in a way that has not
been seen since 1898. In immediate response
to this better feeling of business conditions,
there has come also quickening of financial
operations. Banks are permitting the expan¬
sion of financial programs in a way that has
not lieen encouraged for a number of years.
.Some l)ig financing that is now being done
is an indication of the attitude of the banks
on that question.
Now the coke business is beginning to boom.
This speaks at once of the activities in the
iron and steel trade. It has been known for
some time that iron and steel activities have
been greater than heretofore, but this was
attributed first to the influence of orders for
war munitions from abroad. Lately, how¬
ever, the sales to foreign buyers have been
augmented by sales to domestic factories. This
is indicated by the buying by the railroads in
the first place, and then by the factories
through New England and later buying by
factories in Ohio and Indiana, and recently
by heavy specifications from factories in Illi¬
nois and Iowa. As a matter of fact, the
tremendous demand for iron and the sudden
opening up of furnaces and foundries has
come faster than coke ovens could be put
into shape and supplied with men. As a result
in some places coke is a dollar a ton higher
than it was last week, and pretty generally
coke prices are up this week fifty cents from
what they were a week ago.
All of this, of course, reacts upon the coal
trade bringing a decidedly better demand for
the steam sizes of coal. Nearly everywhere
there is enough demand to absorb the larger
offerings, which are incident to the production
of the seasonable supply of domestic coal.
One of the best indications in this direction is
tile price of fine coal, which normally at this
time of year run off rather sharply.
.Another influence making for better prices
on steam fuel is the shortage of railway equip¬
ment which in the east is especially pro¬
nounced. This is helped along by the short¬
age of labor at some of the eastern mines.
.A secondary influence upon the market has
been the effect of the belated buyiiTg of do¬
mestic coal. In this review it has been
pointed out quite a number of times, that
owing to the money shortage and other things
the people were not buying last summer the
customary amount of coal. Several months
ago, it was predicted that there might be some
distresses for domestic coal this year. The
weather has remained favorable for the house¬
holders, up to now, but even under these
favorable conditions the supply of coal is not
more than enough to go around. The tech¬
nical position of the market is that with con¬
sumption below normal, supply and demand
are today at about a balance. This makes its
own prophesy as to the , future. That is,
weather of this kind cannot possible endure
through the winter and, therefore, there is
going to be a bigger and stronger demand for
coal. That being the case, there is no escape
from the conclusion that we must have a coal
shortage unless conditions change rapidly in
the meanwhile. The fact of the present bal¬
ance between supply and demand and the as¬
sured fact of a coming shortage of coal work
together to induce the operators to get a
stron,g price now.
Chicago Market.
Buying of Domestic Coal Is Heavy —
Prices Are Firm and Screenings
Are in Good Condition.
Office of The Black Diamond,
Chicago, October 28.
In times such as these it is not proper to con¬
sider the Chicago coal market solely from the
standpoint of those things which influence prices
and demand strictly within the geographical
limits of one city alone, but rather to try to con¬
sider the various influences which bear down
upon the whole big producing district of which
Chicago is the distributing center. Looking at it
in that broader light, the number of develop¬
ments are quite important. In Chicago proper
there are some spectacular improvements in the
production programs of certain classes of fac¬
tories. In the bigger territory, which embraces
northern and central Illinois, all of Iowa, part of
Wisconsin and the northwestern states there is
growing evidence that factories which operate on
a smaller scale are having the best business they
have had for the last four years. This means,
of course, an increased demand for steam coal.
In this same larger zone it is also true that
the farmers have been delayed by rains and other
causes in the matter of moving their grain to
market. Several important embargoes have been
removed with the result that the farmers are
taking advantage of the fine weather to get their
crops to market. This has a two-fold effect to
increase the buying of coal by railroads and in¬
creases the sale of coal by retailers.
.Another major influence bearing down upon
this district is that the eastern mines which sup¬
ply a certain amount of coal to these western
consumers are being forced to get along with
a short supply of cars.
As an e.xample, Franklin county coal, which is
showing a marvelous increase in production this
year, is selling in relatively small volume to the
domestic trade in Chicago and when it does sell,
is moving at price concessions considered from
the point of view of circular. Purely local rea¬
sons, such as wars among retailers, explain the
necessity to cut the price inside the city. In the
country, however, where demand for prepara¬
tion is more exacting, and where the larger in¬
fluences are felt, the demand for coal is strong
and prices are firm. Indeed, the technical situa¬
tion of the country market is such that only a
few days of cold weather will be necessary per¬
haps to bring the prices to premium level.
The screenings market has been stronger, fifty
cents being the absolute minimum in the city,
with fifty-five cents in most cases and sixty cents
being the minimum in the country. Prices up to
Thursday were ;
Fr.inklin County —
Lump .
Kgg .
No. 1 nut .
No. 2 nut .
Mine run .
2-incli screenings. . . .
F. O. B.
Chicago.
$2.80
2.80
2.80
2.4a
2.t5@2.20
I.55@1.65
F. O. B.
Mines.
$1.75
1.75
1.75
1.40
1.10@1.15
.50@ .60
The Williamson county operators in the larger
territory are selling coal for somewhat variable
prices, but at the same time the technical posi¬
tion of the market is strong. That is, the re¬
tailers are beginning to move out coal to the
Lrmer trade and are taking in more to replenish
their stocks. It is a weather market, however,
which means that a few days of cold weather
would probably advance all prices to a minimum
of $1.75 if not higher. Even in Chicago the de¬
mand for this coal is increasing for the domestic
trade because of the equipping of apartment
houses with down-draft furnaces which can use
the washed sizes. The fine coals are moving
better than they were last week, because manu¬
facturing business generally is heavier than it
was. The prices up to Thursday were :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.Sn l.G0@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county coal is quotably unchanged, both
as to prices and conditions from what it was last
week. There is a slight tendency to greater
strength in screenings. Prices up to Thursday
were : „
F. O. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Mine run . 2.20 1.15
Screenings . Lo5^@1.6.5 ..50@ .60
lli-inch lump . 2.35 1.30
The warm weather influenced central Illinois
coal a little. Heretofore the mines have been
behind on orders for domestic coal, but this week
have caught up and some few have unsold coal
on track at the mines. The weather explains the
situation. Screenings, however, are a trifle easier
than they were last week. Then the prevailing
price was about fifty cents, but today some of
the coal can be had for forty-five cents. Prices
up to Thursday were :
Central Illinois- —
Lump .
Egg .
Nut .
Mine run .
Screenings .
F. O. B. F. O. B.
Chicago. Mines.
$2.57 $1.75
2.32@2.47 1.50@1.65
2.47 1.65
1.87 1.05
1.27@1.32 .45@ .50
Clinton, Ind., operators are still devoting the
major portion of their tonnage to the steam
trade and are getting a better demand from the
factories in their own state. Not much of that
coal is moved to Chicago. The prices on screen¬
ings range from fifty-five to sixty cents. The
prices up to Thursday were :
F. O. B. F. O. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.35
No. 5 and G mine run . 1.87 1.10
No. 5 and G screenings . 1.37@1.42 .60@ .65
Knox county operators are geting better steam
husiness from the home trade, but the domestic
business is about firm.
The prices up
to Thurs-
day were :
F, 0. B,
F. 0. B.
Knox C ounty —
Chicago.
Mines.
Lump . .
. $2.37
$1.50
Egg .
. 2.37
1.50
Mine run .
1.05
Screenings . .
. 1.52
.65
Anthracite is about
the same as it
was last
week, showing perhaps a little improvement.
* Then the warm weather had slowed down the
sales. That continues to be true, with the ex¬
ception that this week orders are a trifle heavier.
The spot demand for smokeless coal is very light.
The operators have made a few sales occasionally
of mine run in Chicago at $1.40, but most of the
business is in so-called smokeless coal, which is
off-grade at a lower price. Some of this off-
grade coal moves at $1.20 and prices range
from there up to circular. Lump and egg are
a trifle easy because of the weather, prices rang¬
ing from $2 up to an occasional car sold at cir¬
cular of $2.25. The prices up to Thursday were :
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 4.0.)@4.30 2.00@2.25
Producers of the better grades of Somerset
county coal are practically out of the market
because of the short car supply and the slow
movement. On that account, more than because
the demand is strong, the prices are firm at
circular, with the exception of lump and egg,
which in the country are a little easiL Prices
up to Thursday were :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.40 $1.40
Lump and egg . 4.0.'3@4.30 2.00@2.2r)
Genuine high-grade Hocking is selling at $1.75
in Chicago. Off-grade Hocking is selling in the
surrounding territory at $1.60. The movement
is not booming, but is better than it was. The
prices up to Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.25@3.40 $1.60@L75
The movement of splint coal is governed by
the car shortage, which is becoming more pro¬
nounced this week. None of this coal is sold in
Chicago, but the outlying territory is taking some
at $1.50, for open cars, and $1.60 for box cars.
Prices up to Thursday were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
Il4*inch lumi) . $3.15@3.40 $1.25@1.50
The eastern Kentucky situation is stronger,
first, because of car and labor difficulties at the
mines, and, second, because the demand in the
big distributing zone has finally caught up with
the supply. The prices up to Thursday were:
Eastern Kentucky —
Domestic lump .
Egg .
F. O. B. F. O. B.
Chicago. Mines.
$3.65@4.15 $1.75@2.25
3.25@3.75 1.35@1.85
The coke jnarket has a runaway tendency.
Connellsville coke is quoted at $5.50, with the
understanding that these prices will not be pro¬
tected longer than from hour to hour and with
predictions that double the present oven price
may be obtained within a week or so. This
makes equally strong the price on by-product
foundry and furnace coke and it has a tendency
to firm up the domestic sizes to $5.25. The prices
up to Thursday were: t- r,
r . U. jj.
Coke-
Connellsville .
By-product, foundry . o-®',.'
By-product, egg and stove . a.4.>
By-product, nut .
Gas house .
No. 18]
Pittsburgh Trade.
The Coal Trade Is on a Basis of Solid
Prosperity and Coke Prices Show
a Runaway Tendency
OiSce of The Black Diamond,
1503 Oliver Building,
Pittsburgh, Pa., October 28.
The coal trade of this district is experiencing
about the liveliest sensations that it has under¬
gone for the past year. An unprecedented de¬
mand; a healthy advance in prices, firmly main¬
tained, with all indications pointing to still higher
figures in the near future; a decided shortage
of cars; and, a labor situation that is causing
considerable annoyance, combine to keep the eyes
of the trade pretty wide open. While the pre¬
sent conditions may prove temporary and a re¬
lapse set in, the symptons are that the changed
conditions are here to stay at least for some
months to come.
Considerable inquiry is abroad for almost all
grades of coal, in addition to continued heavy
requirements on contract, and it is pretty hard
to locate the market. Different localities are
in shape to deliver or not to deliver coal ac¬
cording to the immediate local conditions, differ¬
ences in freight, and shipping facilities.
Gondola cars are not to be thought of, it
seems, and much complaint is heard of in both
coal and coke shipping centers. Considerable in¬
quiry has been out the past week for lake coal,
and_ it looks as though there would be a skirmish
during the next few weeks to get a supply
through, by those who are not yet covered— and
here again both car and vessel capacity seem
lacking — largely attributed to heavy ^rain ship¬
ping in the northwest.
The Jones & Laughlin Steel Company are in
the market today for forty thousand tons of
low sulphur coking coal, for their by-product
ovens, in South Pittsburgh, and many smaller
lot inquiries are made for both slack and lump
coal.
The retail trade, owing to free buying a month
ago, during a cold snap, and warm weather
since, is not as active as usual at this date, and
the continued warm spell will lighten November
buying considerably, as bins are still pretty well
filled up.
As stated above, a market price is hard to
quote, some operators naming much higher fig¬
ures than others. Those that have no free coal
generally quote the higher, and those that have
coal to sell, the lower. As near as can be learned
the quotable market would be as follows, f. o. b
, mines ;
Slack . . $0.80® .90
Kun of mine . 1 1,5® 1 OS
54 screened lump . llssfllO
0/4 screened lump . 1.40@1.50
Some of the larger producers quote an average
of ten cents a ton above these figures, and buyers
claim to be making purchases at slightly less.
Pan Handle slack has been sold the past week
at seventy and seventy-five cents, but other slack
seems scarce, and $1 is said to be the asking
figure by many.
The coke market has had many surprises dur¬
ing the week past, an increased demand having
developed and prices fluctuating between $2.50
for spot furnace, and .$3.75, with contract averag¬
ing $2.50, the difference between spot and con¬
tract being explained by the present labor situa¬
tion. One producer said this morning he had
closed for 10,000 tons spot furnace at $3 and
mat his asking price on contract was $2.85.
foundry coke also shows sharp advances accord-
quotations made today by producers of
old basin Connellsville standard coke, spot being
held at $2.65 to $2.75 and contract at $3 to $3.50
for first quarter. Crushed coke of all sizes can
be quoted at $3.50 to $3.75, the larger sizes com¬
manding the higher figure. The Connellsville
region is practically sold up to capacity, and
even stock coke, or cullings, is bringing $2.25
and hard to get. The continued advances in pig
iron, and the steadily increasing prices of all
iron and steel products, has brought coke back
producer that could supply
15,000 or 20,p00 tons per month now could have
practically his own price.
Personal and News Items.
Abe Austin, president of the Kanawha Fuel
t^ompany of Milwaukee, .spent some days in Pitts¬
burgh this week.
The Delmont Gas Coal Company of Delmont,
i^a., with offices m the Park building, Pittsburgh,
THE BLACK DIAM01VT>
will begin marketing their output of about 600
tons daily, November 15, their new tipple now
nearing completion.
J- E. Vincent, general sales manager of the
Bertha Coal Company, has been spending some
days in Ohio in the interests of this company.
A young son arrived at the home of W. G.
Ireland, general sales manager of the Jamison
Coal & Coke Company, on the 23d inst., and to
this fact Mr. Ireland attributes the big boom
m both coal and coke.
The Rich Hill Coal^ & Coke Company, located
near Outcrop, Pa., with 120 ovens, will operate
at full capacity just as soon as men can be se¬
cured to run in full. The company have in¬
creased their ovens in blast to sixty-four at the
present time and have orders for running in
full. ®
It is reported that the Frick Coke Company
has closed a large contract with the West Penn
TracticMi Company for power for use in its mines
in the Connellsville District. This contract would
add over $100,000 to the annual income of the
traction company. The officers of the company
state that while negotiations are on they have
not yet been closed.
West Virginia has granted charters to two
new coal companies, the Lundale Coal Company
Huntington, W. Va. Capital, $200,000. Incor¬
porators: George W. Jones, Red Star, W Va •
George M. Jone^, Oak Hill, W. Va • Aneus
McDonald, V. L Black and’ O. P Fi’tzgeraTd
of Charleston, W. Va. ; and the Pickshin Coal
Company, -Stone Creek, W. Va. Capital, $50,000
Iiicorporators : J. C. Sullivan, Tralee, W. Va •
S’"- J- Wood, Sullivan, W. Va.; D. Forest
W^Va Ostego,
Alleging that the Connellsville Coke Company
removed Connellsville coking coal from under
the Schumaker farm, in Upper Tryone town¬
ship, the H. C. Frick Coke Company, through its
TOunsel, Sturgis & Morrow, today filed a suit
in trespass against the Connellsville Coke Com¬
pany for treble damages. It is alleged that from
June 1, 191^ to the present time, the Connells¬
ville Coke Company removed 43,663 bushels of
coal from under the Schumaker farm, the prop¬
erty of the H. C. Frick Coke Company. The
value of the coal taken is given as $873:26, and
by the law, or
$2,619.78, IS asked in the suit filed today.
Indianapolis Trade.
Indianapolis, Ind., October 28.~(Special Cor¬
respondence.) — The demand for steam coal in
Indiana is improving steadily. The prices have
not advanced, but they are steady and there is a
greater degree of optimism among the dealers
and operators than there was at this time last
year. Most of the mine run coal is being sold
at contract prices. The tonnage of mine run is
increasing and is much larger than it was in
October, 1914.
The demand for Indiana coal among the Chi-
cago buyers is quite satisfactory; that is, con¬
sidering the conditions that have existed for the
last few months. The movement of Indiana
coal to Chicago is better than it was a few weeks
ago.^ All of the industrial centers are showing
an improved demand for steam coal. Several
big plants are about to close war orders that will
help the demand for steam coal. One concern
here is about to close for a million dollars’
worth of automobile trucks for one of the Euro¬
pean nations. _ Other factories throughout the
state are getting the benefit of war orders, but
the grptest factor is the big corn crop that is
being harvested._ The smaller cities and towns
bid fair to be in much better shape than they
were last winter, which will help the coal trade—
especially the demand for domestic. The trade
in domestic here is steady.
Some of the retailers are having difficulty in
hlhng their orders for_ domestic coal, particularly
mtf West Virginia_ and Pennsylvania coal,
there IS no trouble getting plenty of Indiana coal
tor the reason that transportation facilities are
good. There is the usual amount of free coal
on the rnarket for October and it is selling read¬
ily at prices that are considered fairly good if not
strong.
The following prices are being quoted by the
wholesalers ;
T F. O. B. F. O. B.
. Mines. Indianapolis.
Mine run. No. 4... . $1.10@1.20 $1.60®!. 60
Mine run Nos. 5 and 6 . 1.05@1.15 1.55@1.65
S'?' . 1.20@1..30 1.70@1.80
. , . 1.30@1.40 1.80@1.90
14-inch steam lump . 1.25@1.35 1.76@1 85
No. 4 screenings . 70@ ,75 1.20@1 25
359
and 6 domestic.:::;:::: tiolllo ifoisto
No. 2 washed coal . j'gg I'®®
Southern Indiana Field-
Domestic "lump.- ; .
caiTi'tal $fnnn Oakland City, Ind.^
capital $1,000, has filed articles of incorporation
St. Louis Trade.
erS) Correspond-
ence.)— The summer weather we have been hav¬
ing for he past ten days has put quite a crimo
in the domestic demand for coal. Nearly all
of the mines in Franklin and Williamson coun¬
ties, however, had enough orders on hand to run
them through this period up to date. But if this
warm weather continues for another week the
operators wi have to curtail their output. In
fact nearly all the operators have signified their
intention of doing this in order to meet the
Mtuation. It seems to be the logical thing to do
The prices are holding up well and all operators
feel tha it would be very foolish to break die
prices at this time of the year on account of a
Jew days of warm weather. They feel that it
IS wiser to curtafl output rather tliL do this
urthermore tffie price on screenings and fine
coal is so low that a break in price on domestic
The mine run aver-
^ ^he present time is very low
‘o'V" have had a verv
slack business for the few days, but as the buv-
ing seems to be entirely seasL’able they expect
sets in minute the cold weather
the other hand, stiffened up a
ttle bit, owing to the slightly smaller produc-
t on,_ and most of the operators are of the
opinion that we are over the hill in regard to
the screening proposition, and from now on prices
win improve rather than decline.
Rnces in general remain about the same The
prices on Standard coal are as follows:
Standard Coa,-
. •ji; w.
No. 1 nuf . . u?? ih'a
Mine run . ’f?
. ;4o
Staunton and Mt. Olive coals are moving read¬
ily, both locally and through the north.
F. O. B. F. O. B.
■ , , Mine. St. Louis.
Williamson county coals are in good demand
wm- ^ Pi'ices are unchanged. Screenings from
Williamson county are in much better shape than
they were a month ago.
N O- B. F. O. B.
C ■ 1, , Mine. St. Louis
cc egg . $1.60@1.75 $2.2254 @2.4754
lc?ee”ntgs""‘: ! ! ! ! i i i '-.Fo
Franklin county mines are all running full time
and are finding a ready market for lump Ege
IS lagging a little and No. 1 is also. However
prices are being rigidly maintained and if the
warm weather continues it is likely that the out¬
put win be cut down a little to meet the situa¬
tion. Fine coals from Franklin county are firm
Ihe operators have adopted the policy of dump¬
ing the fine coals on the ground and large piles
are now accumulating, on the No. 5 and small
nut sizes.
F. O. B. F. O. B.
Mine. St. Louis.
6-mch lump, egg or nut . $1.75 $2.4754
Screenings . go 1.3254
Anthracite is in good demand in the country
on the chestnut size particularly. Locally de¬
mand has eased off a little, though it is still
fair.
Anthracite— F. O. B. St. Louis.
Chestnut . $7 't
^ . .
C , , F. O. B. F. O. B.
Smokeless— Mine. St. Loui«
Lump or egg . $0.25 $4.75
Gas House Coke— F. O. B. St. Louis.
tias house coke . $4 26
By-product coke (all sizes) . !'.!!! 9. . 4.'50
Idle prices 9n Illinois soft coal, f. o. b. East St. Louis,
Madison, Venice or Granite City, Ill., are 20 cents lower
tlian the above quoted St, Louis prices.
THE BLACK DIAMOND
3t)0
[October 30
Denver Trade.
Denver, October 28. — {Special Correspond¬
ence.)— There has been much discussion recently
in coal trade circles regarding a proposed merger
of large operating concerns, including the Vic-
tor-American Fuel Company and others of equal
importance but not including the Colorado Fuel
& Iron Company. That the matter has been un¬
der consideration for some time is not denied by
those interested, and contemplated plans for the
consolidation arc, it is said, now receiving the
attention of legal experts.
J. C. Osgood, president of the Victor- Ameri¬
can, declares that the purpose of the consolida¬
tion will be to reduce the cost of management,
increase efficiency in operation, lower cost of pro¬
duction and thus extend the market for Colorado
coal into territory now supplied from other
states. As the proposed merger does not include
the Colorado Fuel & Iron Company, which pro¬
duces thirty-five per cent of the state s tonnage,
competition will still prevail and no rnonopoly
would exist. Before leaving for New York, he
is.sued the following statement:
■‘The coal mining industry of Colorado is m a
very unsatisfactory condition. Few of the oper¬
ators are realizing any profit from the business,
and some are operating at a loss. This is not a
result of the recent strike, but of conditions
which would have existed if the strike had not
occurred. On account, however, of the losses
incurred during the strike some of the operators
are not in a financial position, to continue much
longer under existing conditions, and unless
soniething is done to remedy the situation wide-
spread disaster may result to one of the most
important industries of the state, which, in the
nature of things, will unfavorably affect all of the
other industries of the state and increase the
already unfavorable opinion of eastern bankers
.toward investments in Colorado.
“The reasons for the depression in the coal
business are many, but the principal ones are:
•‘First— Increased cost of mining without any
adequate increase and in many cases a reduction
in selling prices. In the ten years, 1905 to 1915,
the cost of mining has increased a little more
than forty cents per ton on the average, the
larger part of which has resulted from two vol-
untarv increases in mining price and wage scale
given to the employes in 1907 and 1912, and the
reduction of working hours twenty-five per cent
by the operation ■ of the eight-hour law at the
former dailv rate of wages.
“Other increases in cost have been the expense
incurred in complying with the mining law
adopted in 1910 and in promoting the safety of
the mines ; the recently adopted employes’ com-
pensation law, which is now adding materially to
mining costs; the increased cost of mine timbers
and other mine supplies and the smaller tonnage
and idle time brought about by the fact that the
productive capacity of the mines of the state is
far in excess of the demand from the territory in
which Colorado coal can be marketed.
“The railroads, under the terms of their con¬
tracts, have paid a portion of the increased cost
of mining, but there has been no general increase
in the price of coal for domestic consunjiption and
in many cases there have been reductions.
“Second— Opening and development of new
mines. During the ten years, 1905 to 1915, no
new markets have been opened which could be
supplied from Colorado mines, and the competi¬
tion from other states— Wyoming, New Mexico,
Kansas, Oklahoma, Missouri and Illinois— has
driven Colorado coal from much of the most de¬
sirable territory it formerly supplied. Natural
gas and oil have taken the place of coal in many
parts of the southwest formerly supplied from
Colorado. The most serious element in bringing
about the existing over-capacity has been the
mines opened in Routt county, which are now-
producing from 80,000 to 100,000 tons per an¬
num, all of which has to find a market in terri¬
tory which was already fully supplied by mines
which had previously been opened in other parts
of the .state. , r- , ,
“To further complicate matters, the Colorado
public utilities commission has, by a recent ruling
authorized the making of rates on coal mined in
western Colorado regardless of geograp^^iical lo¬
cation and distance, which, if put m effect, will
bring a very large additional tonnage into eastern
markets already supplied.
“It has been suggested as a remedy for this de-
plorable situation to consolidate a number of the
mines under one management.^ Such consolida-
tion would have to be made strictly in accordance
with the provisions of the Sherman anti-trust
law. and would prove to be of materia advantage
to the employes and the public, as well as to the
coal mine operators.
“It would not be the purpose of such a consoli¬
dation to increase the normal price of coal to the
consumer, but its advantage would be gained
from reduced cost of management, increased effi¬
ciency in operation, consequent lower costs of
production and the extension of the market for
Colorado coal into territory now supplied from
other states so that mines can be kept in full op¬
eration and the tonnage produced in the state ma¬
terially increased.
“The employes would be benefited by having
steadier work and larger yearly earnings.
"The public would be benefited directly by an
assurance of an adequate coal supply at normal
prices and indirectly by the prosperity of one of
the most important industries of the state.
"The consolidation would not result in any
monopoly, as it would not include the Colorado
Fuel & Iron Company, now producing about
thirty-five per cent of the tonnage, nor a number
of other companies in different parts of the state.
The consolidation would still have to market its
coal in sharp competition with coal mined in
Wyoming, New Mexico, Kansas, Missouri, Okla¬
homa and Illinois, and that mined in Colorado
by the Colorado Fuel & Iron Company and other
companies.
“In a recent decision of the highest court m
England, which upheld the consolidation of
tically all the mines in two coal fields in Aus¬
tralia, this language is used :
“ ‘It can never be of real benefit to consumers
of coal that colliery proprietors should carry on
their business at a loss. * * * Where these condi¬
tions prevail, the less remunerative coffienes will
be closed down, there will be great loss of capital,
miners will be thrown out of employment, lep
coal will be produced and prices will consequently
rise. * * * The consumers of coal will lose in the
long run if the colliery proprietors do not make
fair profits or the miners do not receive fair
wages. There is in this respect a solidarity of
interest between all members of the public.
“Nothing is being done toward effecting such
consolidation except a careful investigation,
which is now in progress, of the advantages to be
“It is almost needless to say that neither Mr.
Rockefeller nor the Colorado Fuel & Iron Com¬
pany have been or will be consulted about this
matter, and that they will not be interested di¬
rectly nor indirectly in the consolidation, if one
is effected.”
Oklahoma Trade.
Oklahoma City, Okla., October 28. (Spe¬
cial Correspondence.) — The threshing season, on
which Oklahoma operators and sales agencies
depend so much to “pull them through the
summer months, has been a keen disappoint¬
ment to most of them. The trouble was imt
due to a short wheat crop, for never before m
the state’s agricultural history, extending over
a period of twenty-six years, had there been
such a bountiful yield of small grain. But no
sooner had the grain begun to ripen than a
series of heavy rains set m, continuing almost
to the present time. The excessive dampness
prevented all threshing operations, except dur-
ino- the short periods of sunshine between the
rams The result is that much— perhaps
thirty-five per cent— of the entire crop still
remains in the fields, unthreshed,_ and mostly
worthless. Of the remaining sixty-five per
cent, not more than half was threshed m dry
condition. .
The consequence is far reaching, io begin
with, there was a falling off in the amount
of coal needed for threshing purposes, a fall¬
ing off directly in proportion to the amount
of unthreshed wheat, in fact. Also, the mills
(and these burn coal for fuel) over Oklahoma
are running half time and less, owing to the
scarcity of milling wheat within the state and
the difficulty of buying outside wheat because
of little grain being thrown on markets in
other wheat growing sections. Then naturally
enough the railroads, by reason of having less
o-rain and grain products to handle to and trom
mills, are using considerably less locomotive
^'^'lii fact, the weather man had a sure enough
t^rudge against the coal industry in this section
all summer long. Ordinarily Oklahoma sun¬
shine furnishes five and many times six good
months for the ice plants. This summer was
rarely cool, and less than one-half the usual
amount of ice was made and sold in the stale
Ibis season. . .
Also, the cotton crop was injured materially
by the extremely cool sum_mcr weather ami
excessive moisture. Cotton is planted m May
and is ready to pick the last of August or first
of September in this latitude. It is, as most
everyone knows, a dry weather crop. No cot¬
ton was picked in Oklahoma this fall until
after the first of October, and neither quality
nor yield are good. During normal years there
are about five thousand cars of coal used
(mostly run-of-mine, nut and pea) in the cot¬
ton gins and oil mills of the state. This year
the amount will be cut in half.
Members of the coal fraternity have been
named the most hopeful people on earth. To
them there is a snow-storm lining to every
cloud, from October till May. The M. H. P.
O. E.’s in Oklahoma are loyal to the clan!
In fact, during these warm October days, with
the thermometer registering around 80 during
the daytime, coal dealers, operators and sales
agencies have read somewhere that the Chey¬
enne tribe of Indians, over in the western part
of the state, are busy building brush wind¬
breaks around their tepees in anticipation of
a very severe winter, which their medicine¬
men have foreseen in many signs, and because
of this fact are putting great store in the
future. One of the large sales agency man¬
agers said a few days ago: “The Indians are
predicting a cold, severe winter, and they
usually get it down about right.”
Due to the fact that the prices on all grades
of Oklahoma coal reached the “high water”
mark October 1st, and will continue unchanged
until April next, and further to the warm
weather prevalent at the present time, there
is a surplus of McAlester and Wilburton lump
at most of the mines. The smaller grades are
moving out promptly, going mostly to gins
and cotton oil mills, in Oklahoma and Texas.
List is being strictly adhered to by all sales
companies. The price list for the field is given
below:
McAlester —
Domestic lump. . .
Commercial lump.
Nut .
■Slack . • ■ .
Chestnut .
Mine run .
Wilburton —
Domestic lump. .
Commercial lump,
Nut .
Mine run .
Chestnut .
Slack .
Ilenryetta —
Domestic_ lump..
Commercial lump
Mine run .
Nut .
Slack .
Sans Bois —
Fancy lumn .
Domestic lump. .
Nut mix .
Slack .
Mine run .
$4.25
3.75
3.00
1.10
2.35
2.75
$3.75
3.25
2.75
2.35
2.25
1.10
$3.25
2.75
2.00
2.50
.00
$3.00
2.75
1.50
1.25
2.00
Oklahoma Personal Items.
The Southern Fuel Company of McAlester
is now operating the mine and washer at Sa¬
vanna, formerly operated by the Dow Coal
Company.
The M. B. Schofield Company is furnish¬
ing most of the state coal this season. They
are now supplying 1,000 tons of Sans Bois
semi-anthracite mine run to the state university
at Norman.
Ernest Ingram, formerly assistant sales
manager for the Creek Coal & Mining Com-
pany, Henryetta, Oklahoma, has accepted a
similar position in the division office of the
Fidelity Fuel Company, Oklahoma City. Mr
Ingram is a live wire in the coal game and will
bring many friends to the company with which
he is now associated.
Recent heavy rains in eastern Oklah9ina,
resulting in extreme high water in the vicinity
of McAlester, has been the cause of cessation
of operations in no less than three large rnines
in the McAlester district, due to water getting
into the workings. One mine, Adamson No. 2,
will likely not produce any coal for thirty
days.
Oklahoma City dealers are preparing a
unique billboard advertising campaign, in air
effort to educate people away froni gas as a
heating fuel. Billboards, attractively pictured
and lettered, are being prepared by a local
poster advertising company. Each contains a
different approach to the subject. The written
matter is short and suggestive, with these
words appearing conspicuously on each board.
"Burn Coal.” None of the dealers names ap¬
pear on the signs, but some eight or ten of the
leading coal merchants are pro rating the ex¬
pense and expect to profit thereby.
THE BLACK DIAMOND
361
No. 18]
Detroit Trade.
Detroit, Mich., October 28. — {Special Corre¬
spondence.) — Something of an easing off in de¬
mand for both steam and domestic coal has de¬
veloped during the week, being most noticeable
to domestic sizes.
The occasion for diminished activity in the
steam coal trade is not quite apparent unless it
happens that a considerable number of the large
consumers may have acquired supplies which re¬
lieve them of the necessity of buying for a few
days. The situation does not, however, repre¬
sent a serious falling off in business and some
of the shippers expect it may precede a period
of enlarged activity that will more than offset
whatever decrease they may sustain in present
sales.
In general, business is good and seems to give
every indication of continuing on a satisfactory
basis through the winter. Fine coals are most
active and some of the shippers complain they
are having difficulty in obtaining enough stock
to supply their customers. The situation is com¬
plicated somewhat by car shortage along the
lines of the C. & O. and Erie & Western, while
there are reports also of inadequate car supply
on Pennsylvania lines in the Pocahontas mining
district.
The loss of interest in domestic sizes, in the
opinion of shippers is wholly attributable to the
continued warm weather. Temperature condi¬
tions of the week have been strongly suggestive
of Indian summer, though the nights are suffi¬
ciently chilly to make a fire quite desirable for
comfort, even if only a small amount of fuel is
used.
With consumers of domestic coal holding back
on their orders, the retailers are not coming into
the market in any great number. Any sudden
change of temperature to more wintery weather
might produce considerable inconvenience to re¬
tailers whose stocks are low and probably would
cause more serious difficulty for consumers who
have neglected getting a fuel supply.
Practically the same conditions are noted in the
anthracite trade. The retail yards are appar¬
ently far behind on delivery, owing to the with¬
holding of orders Iw consumers and the business
coming to shippers is meager, the amount being
sufficient, however, to demonstrate that serious
conditions may be expected in case of any more
pronounced shortage of cars in the east. Con¬
signment coal is arriving only in moderate quan¬
tities and except for lump and egg sizes is sold
without serious delay. The sales at sacrifice
prices are infrequent, although not altogether
eliminated.
In the lake trade very little change is ap¬
parent. .Some of the shippers are endeavoring
to increase their shipments, but the demand for
carriers in the grain trade has left few freighters
available for moving coal.
Prices in the local market on mine shipment
orders are as follows :
West Virginia Gas —
Three-quarter lump .
Mine run .
Slack .
West Virginia Splint —
Four-inch lump .
Two-inch lump .
Three-quarter .
Mine run .
Nut, pea and slack .
Smokeless —
Lump and egg .
Nut .
Slack .
Mine run .
Kentucky Splint —
Lump .
Egg .
Nut, pea and slack .
Fairmount —
Three-quarter steam lump
Mine run .
Slack .
Hocking Valley —
-Shaker three-inch lump
Shaker egg and nut....
Domestic lump .
Three-quarter lump .
Mine run .
Nut, pea and slack .
Pittsburgh No. 8 —
Three-quarter lump ....
Mine run .
Slack .
Jackson Hill —
Domestic lump .
Cambridge —
Three-quarter lump .
Mine run .
Pomeroy —
Two and three-inch lump.
Egg .
Stack .
F. O. B.
Mines.
$1.00
.90
.60® .75
1.45@1.75
1.20@1.40
1.10
.90
.55® .05
2.25
1.75
Open
1.40
1.60®1.75
1.25@1.40
.65
.86® .95
.70® .80
Open
1.60
1.15
1.50
1.35
1.00®1.10
Open
1.05
.95
Open
2.50
1.20
1.10
1.60
1.35
Open
F. O. B.
Detroit.
$2.40
2.30
2.00®2.15
2.85@3.15
2.60@2.80
2.50
2.30
1.95®2.05
3.85
3.35
Open
3.00
3.00®3.15
2.65®2.80
2.05
2.25@2.36
2.10®2.20
Open
2.75
2.30
2.65
2.40
2.15®2.25
Open
2.20
2.10
Open
3.65
2.35
2.25
2.75
2.50
Open
W. E. Besancon is chairman of a special com¬
mittee of six appointed by the Detroit Coal Ex¬
change to confer with the village council of
Highland Park to obtain a hearing for the coal
men before the village takes final action on the
pending ordinance, by wdiich it is proposed to
punish by fine any dealer delivering to customers
in the village anthracite or bituminous coal con¬
taining more than five per cent moisture, furnace
coke with more than eight per cent moisture and
small coke containing more than ten per cent
moisture. At the last meeting of the village
council one of its members suggested adoption
of a rule requiring sale of coke by measure in¬
stead of by weight.
After having served for some time as a repre¬
sentative in Detroit of the Sunday Creek Coal
Company, James A. Greenwald has engaged in
business for himself. He has opened an office at
toil Majestic building.
Business of the Matthew Eddy Company of
Cincinnati is now being handled in Detroit by
I'rank Zay.
Cleveland Trade.
Clevel.vnd, Ohio, October 2vs. — {Special Corre¬
spondence.) — The past week was a surprisingly
dull one in coal circles. Apparently the demand
dropped off suddenly, while the supply increased
from accumulated shipments which were late in
arriving. Another feature has also entered into
the situation which may complicate it for some
time, unless there should be a big drop in the
temperature. Jobbers made their usual provision
for cold weather and a consequent increase in
demand at this time of the year, but instead the
past few days have been rather on the warm order
and the demand did not develop. This has had
as much to do with the over-accumulation of coal
as anything else and it will probably be difficult
to govern, since the orders have been placed and
preparations made to fill them. Then, too, there
would be some danger in Jialting the supply be¬
cause of the possible drop in temperature which
should not be far away.
Coal is still going up the lakes at about the
usual rate for the season. Little tonnage is be¬
ing offered and there is yet no tendency to pay
a premium except in special cases. There may
lie a rush at the end of the season, but this is by
no means certain. It will all be governed by
business conditions which look very encouraging,
in a general way, at this time.
It is understood that the amount of lake coal
moving from the Pittsburgh district will com¬
pare very favorably with last season. Unless
some unforeseen difficulty presents itself it is
expected that this will continue until the close of
navigation. While there was still a supply left
over at the upper lake ports in the spring, it
moved with sufficient rapidity during the summer
months to furnish a good amount of dock capac¬
ity for the present shipping season.
The demand for domestic coals was very light
the past week, owing to the prevailing warm
weather. Jobbers have been able to catch up
with their orders in delivery and are now look¬
ing for new business. While the Massillon pro¬
ducers may still be somewhat behind, many of
them have brought their deliveries up to within
a few days. Some of the mines are not running
to full capacity, however, and the car situation
is still proving troublesome.
Quotations on the various coals in this market
today are as follows :
F. O. B.
F. O. B.
No. 8 District — ^
Mines.
Cleveland.
Three-quarters . .
$1.95®2.00
Run of mine .
1.85
Slack .
Pittsburgh District —
1.65
-Slack .
1.70®1.80
Voughiogheny —
Slack .
. .85
1.85
Smokeless —
Lump .
3.55
Egg .
. 2.10
3.55
Run of mine .
. 1.30
2.75
Massillon —
Lump .
. 2.50
3.20
Nut .
. 2.50
3.20
Slack .
_ .90
1.6C
Cambridge —
'I hree-quarters .
Run of mine .
. 1.10
2.00
. 1.00
1.90
Slack .
1.75
Goshen —
Slack .
1.60®1.65
Fairmont —
Slack .
1.90
Kentucky —
4-inch block .
. 1.90@2.00
3.15@3.2r)
Oklahoma City schools are being heated
with coal again this year. This time against
ten-cent gas. In other w'ords, the gas coni-
pany proposed putting gas for all the city
schools, thirty-five in all, through one meter,
at ten cents per thousand feet. Their offer,
however, was refused by the Board of Educa¬
tion because of the uncertainty of fuel during
cold weather in case of breakage of gas mains.
Birmingham Trade.
Bir.mingh.am, Al.\., October 28. — {Special
L orrespondence.) — There is no question as to
the general improved mining conditions, but
some of the coal men are not fully satisfied with
the existing tonnage, as it has not met fullest
expectations. The real fact is that Alabania can
miiTe a far larger tonnage than she has a devel¬
oped trade, and those who are a little pessismis-
tic, are the ones who have expected a full capac¬
ity to the fullest and largest tonnage which could
possibly be gotten out. Eor instance, with the
number of mines now operating, between 20,000,-
000 and 25, 000, 000 tons could be produced for the
year, while the market demand is only from
15,000,000 to 17,000,000 tons. Thus it is, that
some are not yet satisfied with business which
is in hand. A further proof of better feeling is
the fact that one of the large mining companies
has restored a twenty per cent wage cut which
was made about the advent of the war.
The development of trade still goes on down
the Warrior river and a goodly tonnage is now
going to gulf ports by that route.
Steam coal trade is fairly good and with the
cotton oil mills all over the south running quite
a good tonnage is supplied for this purpose. The
demand for the bunker trade to the ports is good,
though not so large as it would be if more ships
were running, but there is some increase in this
business, too.
Domestic trade is holding up well with good
trade in hand by both operator and retail man.
Blacksmith coal trade is only fair. There is a
steady production of coke in this district. The
by-product ovens are losing no time in their op¬
eration, and the coke demand is sufficient to
eliminate any accumulation of any consequence
in this district. With the heavy production of
pig iron, the steady operation of foundries and
machine shops and other plants where coke is
consumed, the maximum output almost is war¬
ranted. Good prices obtain for coke.
The Summit Coal Company of Summit,
Walker County, has been incorporated with au¬
thorized capital stock of $25,000.00 by James L.
Davidson, E. 1). Reynolds, James Gallacker, all
of Birmingham. This mine is opened on the
Black Creek seam of coal. Machines and equip¬
ment will be put in to mines from one hundred
and fifty to tw'o hundred tons per day.
A large deal in coal lands has been concluded
in Cullman county. A tract of 2,840 acres was
bought. The property was owned by the Stouts
Mountain Coal & Coke Company, a corporation
controlled by Birmingham interests. W. L. Sims,
as trustee, is the purchaser. All mining interests
have been leased, and getting out coal from Black
Creek seam will be begun soon. W'hen formerly
worked this company had a capacity of three
hundred to five hundred tons per day.
It is expected that the mine will be brought up
to about that amount of tonnage.
Prices for October and the balance of the
year :
F. O. B.
F. O. B.
Bibb County Domestic Coal —
Mines.
Birmingham.
Red ash Cahaba lump .
$3.00
$3.50
Red ash Cahaba lump .
2.75
3.10
Red Ash steam size .
. . 1.20®1.35
Frt. rate 30c
Jefferson County —
kancy steam Pratt .
1.75
2.00
Run of mine Pratt .
. 1.20@1.25
1.45®1.60
Mary Lee lump .
. 1.40®1.50
1.80®1.90
Black Creek —
Fancy steam lump .
1.76
2.05
Washed nut .
1.75
2.05'
Washed steam .
. . 1.35®1.60
Frt. rate 30c
Mine run .
, . 1.85®1.40
Frt. rate 30c
Jefferson Steam Coal —
Mine run . 1.15®1.25 Frt. rate 30c
Walker County Domestic ( oal —
Carbon Hill lump . 1.75 2.15
Carbon Hill egg . 1.65 2.05
Horse Creek mine run . 1.00®1.20 Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . 1.90 2.35
Steam sizes . 1.25®1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 3.00 3.30
Cahaba No. 2 lump . 2.75 3.05
Montevallo domestic prices range from $3.00 to $3.25.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
The car shortage, which is general over the
United States, is beginning to be felt in Okla¬
homa. The Hickory Coal & Mining Company,
of Tulsa, Oklalioma, are some ten days behind
with orders, due to inability to procure emp¬
ties from the “Katy” road.
On November 1st, E. R. Clayton, manager
of the sales for the Harlan Coal Company will
become associated with the Wallins Creek
Sales Company, as sales manager, with offices
at I’ineville, Ky.
362
THE BLACK DIAMOND
[October 30
New York Trade.
Demand for Anthracite Is Affected by
the Mild Weather — Bituminous
Demand Is Strong
Office of The Black Diamond,
New York, October 28.
Although the mild weather prevailing for the
past week or ten days has diverted attention from
retail buying of anthracite, the trade continues
very active, especially in the production end. The
spurt in buying that began several weeks ago left
the companies with plenty of shipping orders on
hand when the lull in demand set in late last
week. What is needed now is a few days of cold
weather to start retail buying, but there is no
question but that the trade will be so busy in
the next few weeks as to keep the operations
going on full time.
-At the moment, those companies that ship coal
west via the lakes, are concerned about getting
forward sufficient coal between now and the close
of navigation to take care of their western needs.
The lake season will close in four weeks, and
it is believed by those who have studied the situa¬
tion that a great deal of anthracite should yet
go forward to the docks on the upper lakes. At
the moment vessels for lake transportation are
scarce, brought about by the transferring of nu¬
merous lake boats to the Atlantic coastwise and
off-shore trade during the early months of the
year ; also the diversion of numerous boats to
carry grain. The grain rates have been so at¬
tractive that many coal steamers have engaged
in this work. Moreover, the docks at the head
of the lakes are said to be well supplied with
coal, which means that they will have to dis¬
tribute largely during the month to be in posi¬
tion to discharge cargoes that arrive.
In the east the all-rail trade is active, and
large quantities of coal are going all-rail in every
direction. Business at tide is not so active, but
most of the coals are moving freely with very
few lots of domestic sizes being sold off cir¬
cular. Such sales as one hears about at con¬
cessions are usually remote, once in a while a
lot of coal getting near the demurrage stage at
tidewater, and the shipper, in his effort to move
it quickly, makes an attractive concession.
Stove is in good demand. So is chestnut, and
egg is also moving pretty freely.
In the steam sizes there is not the pressure to
secure coal as was the case during the past
several weeks, but there is no accumulation at
any of the ports, and former prices are being
pretty well maintained. There is a steady market
for the good grades of No. 1, 2 and 3, and pea
coal is also in good demand. Some of the ship¬
pers are not accepting orders, except for steel
hopper cars. There is a dearth of low side cars,
and a great many of these are constantly called
for by retail dealers at all-rail points.
In New York city the excellent demand for
harbor boats may shortly affect harbor freight
rates. Many boats are now being needed for
other purposes, and as great deal of anthracite
coal is moved on time charters, it is only once in
a while there is a call for spot vessels. To give
a few instances of the advance of harbor rates,
a 900-ton barge that during the summer months
would charter for $4.50 a day, now secures $9,
and a 300 to 400-ton barge that got $3 during
the summer is now securing $6 and $7. Flat
scows are securing all the way from $15 to $20
per day. The rates for the Sound are prac¬
tically unchanged. Practically no coal is now
moving to the Provinces.
New York prices:
Broken .
Upper
Ports.
Lower
Ports.
$5.00
5.25
5.25
5.50
3.45
5 60
Pea .
Special grades of red ash and other high-grade
coals at the lower ports sell at twenty-five to
fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows :
. $5.05 and up
Stove . 5.20 and up
J^ut . 5.20 and up
Pea . 3.25 and up
Ouck . 2.30 and up
Pice . 2.00 and up
Harley . 1.75ondup
The Bituminous Situation.
The bituminous production continues on a full
scale, which means at the moment it is up to
car supply. Cars are scarce on most of the east¬
ern bituminous roads, and the situation is not
improving. It was believed sometime ago that
as soon as the large railroads in the east quit
stocking coal, that a lot of cars would be liber¬
ated, and these would be used for commercial
purposes. It appears that in the meantime a
great many of the low side cars have been drawn
into other lines, so that the steel hopper cars are
now about the only ones used exclusively in
coal. To add to the shortage of cars, we have
frequent interruptions in transportation when the
cars are loaded, due to the very heavy ship¬
ments of all kinds of products to the seaboard
for export. One of the New York tidewater
roads last week had to declare an embargo on
all freight, so badly had its terminals been con¬
gested with merchandise to be transferred to
ships.
The spot market has not materially improved.
On the other hand contract movement is just
about as active as could be expected. The ab¬
sence of any unusual buying on the part of con¬
sumers at this time is held due to the fact that
practically all of the principal users of coal for
steam making purposes are under contract, and
this means that they are either securing coal
direct from the operators or from middle houses.
So far the middle houses have been able to take
care of their contracts, but the moment they
find themselves unable to obtain coal at satis¬
factory prices it is anticipated that they will fail
in their deliveries, and this will start a lot of buy¬
ing from the consumers direct.
Mine prices have improved so that $1.15 is the
minimum for Pennsylvania coals. This means
$2.70 f. o. b. vessels. New York harbor. There
is very little free coal at the local piers, and
choice grades are held at $2.80 and up, with
fancy grades quoted at $3 and up. Slack is
quoted all the way from seventy-five cents to
$1.10, according to the region and freight rate.
The export trade is still hampered through
the lack of vessels. The demand for export is
healthy, but buyers do not want to pay the pres¬
ent prevailing rates of freight, which mean in
case of shipments to the Mediterranean of about
six times the price of the coal f. o. b. vessels, and
about three to four times the price of coal f. o. b.
vessels if for South American destination.
The Vessel Situation.
The coastwise vessel situation is easy. The
weather has been ideal for" the movement of
boats and barges coastwise, so that prompt
schedules are being made. As the bulk of the
coal moving into New England is in vessels con¬
trolled by the coal companies or else under time
charter, there is very little call at the moment
for spot tonnage.
The off-shore question is fully covered on our
export page.
We quote current rates on freight as follows :
From Hampton Roads to Boston, eighty to
ninety cents is about the range; to Portland and
points east of Boston, from ninety cents to $1.
To sound ports, eighty to eighty-five cents. From
Philadelphia to New England points, about five
cents under the Hampton Roads rates.
From New York to Bridgeport or New Haven,
thirty cents ; to New London and Providence,
forty cents; to Fall River and New Bedford,
forty-five cents; to Boston, fifty-five to sixty
cents.
Current quotations on bituminous coal in spot
lots are :
F. O. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
$1.40
Ordinary .
. 2.70
1.20
Medium grades .
1.15
Cambria County —
Best Miller vein .
. 3.00
1.45
Medium grades .
. 2.80
1.25
Cheaper grades .
. 2.70
1.15
Clearfield County —
Best grade .
1.35
Ordinary grades .
. 2.70
1.15
Indiana County —
Best grade .
1.25
Medium grade .
1.15
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia Splint —
Ordinary grades .
. 2.55
1.00
Best gas. ^-inch lump .
. 2.75
1.15
Best grade, run of mine .
.90
Gas slack .
.75@1.10
New York Trade Briefs.
A.' Sidney Davison, of A. Sidney Davison
Coal Company, No. 1 Broadway, visited Pitts-
burgh and the central Pennsylvania mining re¬
gions last week.
The firm of Hazen & Smith, No. 1 Broad¬
way, has been dissolved. W. C. Smith has
purchased the interest of Edward L. Hazen,
and will continue the business under his own
name. This firm started in the wholesale
business at No. 1 Broadway about a year ago.
W. R. Coyle, general sales manager of Wes¬
ton, Dodson & Co., Inc., passed through New
York on Tuesday, en route to Bethlehem from
Newport, R. I., where he spent the week-end.
Alalcolm L. Carl, who was formerly with
Dickerman & Englis at No. 42 Broadway, has
opened up an office on his own account at
No. 50 Church street. He will deal largely in
bituminous.
C. E. Bockus, president of the Clinchfield
Coal Corporation, was up from Dante, Va..
several days this week. Mr. Bockus reports
that the xoal trade in the southeast is so
active, that the Carolina, Clinchfield & Ohio
R, R, will be compelled to use all of its sur¬
plus coal cars, quite a number of which were
loaned to other railroads during the slack
season,
George W. Hoban, who graduated from the
Lehigh University in the class of 1915, has re¬
cently been appointed salesman for Long
Island and Staten Island for Weston, Dodson
& Co,, Inc,, reporting to the New York office.
For some months past Mr. Hoban has been
connected with the Bethlehem office, and was
given the usual schooling in the mines of the
company whose output Weston, Dodson & Co.
sell.
Frank J. Honan, vice-president of the Skeele
Coal Company, No. 90 West street. New York,
surprised quite a number of his friends last
week when he announced that he had been
married in June last to Miss Julia Buckley,
formerly of Binghamton, N. Y. Mr. Honan
comes from Binghamton, and he and his wife
were school mates. They have been making
their home on Washington Heights in New
York City.
News was circulated in New York on Mon¬
day of the death Sunday of William Hockings,
salesman of Weston, Dodson & Co., Inc., with
headquarters at Lansdale, Pa. Mr. Hockings
and his wife were crossing a railroad track in
an automobile, when their car was struck by
some freight cars that were supposedly stand¬
ing still on a sidetrack. Mr. Hockings and
his wife were instantly killed. They had been
married less than a year.
Announcement was made this week that the
Clinchfield Coal Corporation had purchased
another lake steamer, which has just been
built. This steamer is the twin ship of the
“International,” which was purchased by the
Clinchfield early in the spring, and which has
been in service since May taking coal between
Ihe southern ports and Galveston. The new
steamer will be brought around immediately.
It will be named the “Clinchfield” and will be
used exclusively to take coal between Charles¬
ton and Cuba, where the Clinchfield has built
up quite a representative business.
F. W. Pray, president, and W. E. Macurda,
treasurer of the Garfield & Proctor Coal Com¬
pany of Boston, were at their New York office
on Tuesday. The New Bedford plant of the
Garfield & Proctor Company was recently
sold to the Pocahontas Fuel Company, and it
will be used by this corporation commencing
with the new coal year. The New Bedford
plant is one of the most up to date coal re¬
ceiving, storing and distributing plants located
on New England waters. It is a strategic
point for distributing bituminous coal to a
very populous manufacturing territory. More¬
over, it has an advantage by receiving coal
by water, due to the fact that it located on
a protected bay, and ships that bring coal
from the southern ports do not have to go
around Cape Cod.
Some of the newspapers last week published
a story that the control of the Virginia Iron,
Coal & Coke Company, with headquarters at
Roanoke, Va., would likely pass to interests
controlling the Clinchfield Coal Corporation.
The Black Diamond learns that there is no
foundation for that rumor. Stock of the Vir¬
ginia Iron, Coal & Coke Company has been
very active on the New York stock exchange
recently, taking a new advance this week. One
rumor has it that the Virginia Iron, Coal &
Coke Company are making millions out of car-
l)on contracts, and that they also have a large
lienzol contract. This company has very large
and valuable coal and iron properties in the
western section of Virginia, and it is under¬
stood that all of the plants are being worked
to full capacity.
No. 18]
THE BLACK DIAMOND
363
Philadelphia Trade.
Anthracite Slows Down Because of
Warm Weather — Bituminous
Supply Is Precarious
Office of The Bl.^ck -Diamond,
1400 Land Title Building,
Philadelphia, October 27.
The hard coal people were about ready to sit
down for their long period of seasonable busi¬
ness when the weather interrupted this week and
they have been called on to take another seventh
inning stretch. The tang of the fall air that
sent many a householder cellarward to examine
the coal bin was replaced by warm sunshiny
days, so that the three opening days of the week
saw a falling off in the orders from the retailers.
The host of small yards in Philadelphia feel the
holding up of domestic orders quicker possibly
than any other city in the country, and here
again, with its close proximity to the points of
production, the reflection is felt as quick by both
producers and middle houses.
The anthracite market,, here, is always smitten
with freakish angles. There is no reason for
the falling off, more in one size than another,
except those directly governed by seasonable buy¬
ing. However, stove coal was the size this week
that was particularly ignored by the retailers and
as a result the wholesale and middle houses were
“pushing” this especial size with more vigor than
usual. Pea coal is now the king-bee and most
of the activity centered about this. The weather,
once more, has hurt not a little what hopes the
independent had of moving this size to a 25-cent
advance from the $2 mark with the coming of
the new month. Just as freakish is a revival in
demand for egg coal. Some of the dealers say
that this is due to the first cool nights that opens
up trade with late comers who want that coal for
their grates. Buckwheat sizes also are in de¬
mand, due to increased industrial activity and
orders placed by office and apartment buildings
for winter supplies.
The congestion of freight traffic in and about
the New York harbor has been responsible for
slow movement of all-rail anthracite to New
England points. An embargo over the Jersey
Central helped to tie things up while it lasted.
Movement by barge to ports of the upper coast
has been heavy during the past week and in¬
creasing activity is logical from now on.
The Bituminous Situation.
This radiates entirely around the car and labor
conditions which shift from day to day. A few
more cars on allotments at the mines change
the entire complexion in the individual sense.
There has been nothing, however, to change the
general phase of the trade. The middle houses
here are “up against” the same old problem that
would put gray hair in the head of a saint. The
operators, they say, are up to their old tricks and
fail to meet the requirements of agreements en¬
tered into. The shortage of cars has turned
things around with the middleman between the
consumer and the operator and his life is that
of “one darned thing after another” these days.
One big consumer of coal in Philadelphia is
not stocking coal, despite the fact that as big and
bigger concerns are keeping an eagle eye on their
coal pile. They give no explanation. They say
that they are willing to stand back of their guess
that there is no occasion for preparedness. An
interesting point made by men who know of
this case is this : “Could they stock up to their
requirements now if they would?”
It is tonnage, now, as against cars. Plenty of
coal can be had in car shipments. In other words,
but for tonnage orders to be spread over given
time there is little or none offered. Likewise
the consumer, who was accustomed to the visits
of three to a half dozen salesmen in a day, has
been asking “What has become of all these gen¬
tlemen who were pestering me only a short time
ago?” Explanation is given in the fact that it is
customary for the bigger concerns to sell uj) to
sixty per cent of their output on contract. With
a car supply that ranges only about .55 per cent
of normal,, it is easy to see why the salesmen
have not been pushing coal at this stage of the
game.
The consumer must bear his part, and the
local trade would welcome with open arms some¬
body who could put into being a plan of co¬
operation to lift the burden. As an instance
the consumer who wants to hustle along coal
for his own pile for storage and orders 1,000
tons a month, where he could get along with
say 550 tons, bars out the man that must have
coal for immediate use. ^
At the piers there is little free coal. Western
Maryland in small lots can be bought at $1.15.
Higher grade coals are held' from $1.15 to $1.35.
Movement into bunkers was heavy during the
week and the export movement has been well up
with the general increase that was shown this
fall.
Philadelphia News Notes
David Atherton of Atherton and Barnes, opera¬
tors at Philipsburg, was one of the trade visitors
of the week.
F. H. Wigton of the Morrisdale Coal Com¬
pany spent a couple of days this week at the
company’s operations at Morrisdale, Pa.
A. S. McQueen, representing B. Nicoll & Co.
in Pittsburgh, was a caller at the local office
this week on his way to headquarters in New
York.
\\'. H. Moore, who has represented Dexter &
Carpenter in this market for the past six months,
has been succeeded in the management of the
office by W. M. Whitney.
Harry K. Courtright of the Cortright Coal
Company was a New York visitor of the week.
His father, N. D. Courtright of Mauch Chunk was
in Philadelphia on Wednesday.
Louis C. Emmons, of the Emmons Coal Min¬
ing Company, was in the central Pennsylvania
producing district this week. He was accom¬
panied by H. P. Jordan of the company’s sales
force.
William J. Faux, president of the Logan Coal
Company, has been laid up at his home for the
past couple of weeks with a heavy cold, and, it
was reported the middle of the week, that he
had taken quite a turn for the worse.
Carrol Patterson of the Carrol-Cross Coal
Company of Bloomington, Md., was in town
Monday. For some weeks Mr. Patterson has
been troubled with a throat affliction and his
visit was spent mostly with a specialist.
W. J. Brown, secretary of the Philadelphia &
Reading Coal & Iron Company, has been indis¬
posed and under the weather for the past couple
of weeks and has decided to take a rest for the
coming month away from the trials of business.
John J. Monaghan, former district superin¬
tendent for the Philadelphia & Reading Coal &
Iron Company, died at his home in Shenandoah
on Sunday last. He had retired from active duty
some years ago. Mr. Monoghan was sixty-five
years of age.
John Kuhn, line salesman for the Van Wickle
estate, took an automobile party of customers to
Hazelton, where the company’s mines are located,
on Sunday and Monday last. A Ford and a
careful driver lengthened out the trip a little
longer than was intended.
Harry Stauffer of the B. Nicoll forces, who
has been ill in a hospital at Elmira N. Y., has
been reported in a better condition and is fight¬
ing back to good health. J. C. Stauffer, his
brother, who was with him during the crisis,
returned to the local office Monday.
Mrs. Emily K. Baer, relict of George F.
Baer, president o'f the Philadelphia & Reading
Coal & Iron Company, died at her home in
Reading on Thursday night last. She was mar¬
ried in 1866 and her home originally was in
Somerset, Pa. After the death of Mr. Baer she
left Philadelphia and had resided in Reading.
Headed by President Warriner, officers and
directors of the Lehigh Coal & Navigation Com¬
pany made a trip of inspection to the coal and
railway properties of the company in the regions,
on P'riday last. The new transportation yards
at Pen Argyle were the especial points of inter¬
est to the party. The inspection was concluded
in a day.
William Hockings, a salesman for Weston
Dodson & Co., and his wife, were instantly killed
on Saturday last in a horrible automobile acci¬
dent at Lansdale. He tried to pass on a cross¬
ing in front of an on-coming train and the auto
was demolished. He had represented Weston,
Dodson & Co. at the Bethlehem office as a sales¬
man for some time and was recently transferred
to their Philadelphia office. His home was in
Bangor, Pa., and the funeral of both he and his
wife was held there on Tuesday.
Contracts for coal for the city pumping sta¬
tions until the last of the year were held up on
Tuesday last because the city council made no
appropriation of money to care for the supply.
It is the conclusion of the director of supplies
that the contracts will finally have to be awarded
"on the donation plan.” In other words, the
city will have to ask credit from the coal com¬
panies until money is appropriated.
Last Saturday the collier Virginia, which was
built by the New York Shipbuilding Company at
Camden for the Pocahontas Coal Company, was
launched at the shipyard with customary honors.
The new boat is 7,000 tons capacity and will be
used in coastwise trade between Hampton roads
and New England points. The new boat is the
third to slip from the ways in as many months
and be placed directly in the coal trade.
Three up-state banks joined in legal action
against Irish Brothers last week to recover
$11,533 which is alleged to have been secured
against Ned Irish, the surviving member of the
firm, contrary to_ the bankruptcy laws of the
state. The firm is, at the present time, in the
hands of a receiver. The note transactions
which were the cause of the action concern an
allowance by judgment secured by Mrs. Ned
Irish. These are quite complicated.
It appears that the Norristown Trust Com¬
pany holds a promissory-note, dated December
16, 1912, payable on demand of the Lattimore
Company for $1,000, payable to the order of
Ned Irish and J. Burd Irish. This was endorsed
by them and paid by the Norristown Trust Com¬
pany for a consideration before maturity. The
Montgomery National Bank, another of the peti¬
tioning creditors, holds a note drawn by the
Buch Ridge Coal Company, dated September 8,
1914, payable in four months. This note is for
$10,000 and it was paid before maturity. An¬
other creditor, the Moshannon National Bank,
is the holder of a note for $7,.500, dated June 10,
1914, drawn by the Indiana Coal Company and
was payable to Irish Brothers. At the time of
the appointment of receivers for the firm, Sep¬
tember 22, 1914, the firm’s assets were given as
approximately $1,000,000 and the liabilities
$750,000.
Duluth Trade.
Duluth, AIinn., October 28— (Special Corre¬
spondence.) — Making of coke has begun at the
nevv steel plant of the Minnesota Steel Company,
which will begin turning out steel billets on
November 10. The first coke turned out was
on Alonday of this week, and it is planned to
have each of the ovens that will be operated for
the next three weeks turn out a quota of ten
tons each, daily. A stockpile of 5,000 tons will
be ready before the steel plant begins its work.
A large part of the coal that is coming to this
port just now is going to the steel plant. It is
unloaded at the dock of the Duluth, Missabe &
Northern Railway, that being, like the plant, a
subsidiary of the United States Steel corpora¬
tion, and is taken to the plant in cars, a matter
of about five miles distant.
Contrary to expectation, the arrival of coal has
fallen oft’ in the last two weeks, and so has the
shipment to northwestern points. The latter
feature is the most puzzling. Y’ith cold weather
setting in it was expected that there would be a
brisking up, but the shipments are showing a
decided sag as compared to what they were.
Hard coal is keeping up better than soft coal.
As to arrivals of coal, it is believed that the
weather on the lakes has had a good deal to do
with the slacking up. A good many ships have
had to seek shelter here and there, and arrivals
have been slow in all lines.
Anent the falling off in bituminous and the
steadiness in shipping of hard coal, F. L. Young,
vice-president of the Clarkson Coal & Dock Com¬
pany here, sprung an atrocious pun yesterday.
While this is not a joke column, it is felt that
it would be a case of making the punishment fit
the crime to hang this where it belongs. Air.
Young had discanted on the falling off in ship¬
ments of soft coal, but said that hard coal was
going all right. It was observed that he prob¬
ably was satisfied so long as hard coal kept up,
wasn’t he? “Not by a^i anthracite,” said Mr.
Young.
The Zenith Furnace Company is putting in
considerable new equipment this fall, necessitated
by growing business and the fact that it has
started dealing in hard coal, which was not
handled before. Among other things a new 150-
ton scale is being installed, which is of fifty tons
more capacity than the old one, which is being
replaced.
The probability is that an advance in coal
prices will be announced here about the first of
November. Nothing definite has been announced
as yet, but the indications are that way.
364
THE BLACK DIAMOND
[October 30
New England Trade
Boston, October 28. — (Special Correspond¬
ence.) — The warm unsea.sonable weather has dis¬
appeared and the demand for anthracite, accord¬
ing to local wholesale houses, is hack to normal.
With the end of the month but two days away
there is every indication that October bookings,
notwithstanding the temporary check in business,
will compare very favorably with those for the
corresi)onding month last year. Considerable
October business will be carried over into
.November.
At the moment the demand runs more to stove
than anything else and it sells at $.").85 per ton
alongside Boston Harbor and at $6.20 on cars at
Mystic Wharf. Egg is moving slowly and while
(juoted openly on the same basis as stove, a buyer
might possibly secure slight concessions on large
tonnages if he hunted around enough. Nut is
next to stove in popularity. In fact many orders
l)laced here during the past week have called for
equal amounts of stove and nut. Nut is $6.10
alongside Boston Harbor and $6.45 on cars at
Mystic Wharf. Broken is quiet as is usual at this
season of the year. Pea is in better demand than
it has been before in a long time, but cannot be
considered real active; it brings $4.05 per ton
alongside Boston Harbor. Buckwheats continue
in demand, but are scarce and very firm. Manu¬
facturers located on Sound water points are evi¬
dently the best buyers of buckwheats.
Southern and western Massachusetts, Rhode
Island and Connecticut all-rail distributors con¬
tinue an anthracite market factor, while Massa¬
chusetts seaboard points have been the largest
buyers of cargo lots during the past week. Maine
is buying very sparingly, and New Hampshire
and Vermont only in a hand-to-mouth way.
Local wholesalers say there is plenty of coal at
the mines, but the supply of cars to get it to ship-
l)ing points is getting smaller and smaller each
day. A serious car shortage is now assured, and
early and heavy snows would practically tie up
the anthracite business. Trade with the Provinces
holds up remarkably well, notwithstanding the
fact that Dominion mines are making record out¬
puts.
The wholesale bituminous situation is much the
same as it was a week ago. With regard to the
1916-17 season almost everybody is still up in the
air. In the meantime a fairly large tonnage is
arriving daily at New England points and this is
being readily absorbed. Massachusetts manufac¬
turers, in a great many instances, have been and
are anticipating any inability to secure supplies
during November, December and January owing
to car shortage or stormy weather. Aloney is so
cheap and plentiful, reliable concerns have no dif¬
ficulty in securing all the money they want to
carry large coal supplies.
One hears less and less talk about price reduc¬
tions at Alystic Wharf and actual sales of spot
New River and Pocahontas have been made at
that point during the past week at $3.70 to $3.75
per ton on cars, but most lots have brought
nearer $3.68, against $3.65 a fortnight ago.
Oeorges Creek is moving better at Mystic at
$13. 90 and $4 per ton, and at Portsmouth is very
active. New contract business is not brisk by
any means, but is so much better than it was a
month ago, dealers are quite encouraged. At
Hampton Roads ports the official price for south¬
ern coals continues $2.85 f. o. b., but there is still
more or less price cutting going on by certain
.shippers. All-rail Pennsylvania is moving fairly
satisfactorily on a basis of ninety cents to $1.50
per ton on cars at the mine. The cargo business
is practically at a standstill so far as new orders
are concerned.
The marine freight rate market is unchanged.
The weather has been ideal for transportation,
but the demand for coal has not been sufficiently
large to cause a shortage of ocean space which
can be had from seventy -five to eighty cents from
Hampton Roads ports to Boston. Rates from
New York to Boston are unchanged at fifty to
fifty-five cents per ton.
Boston Trade Notes.
h'reight handlers on all railroads running into
Boston are out on strike. Stationary engineers
have signified their intention of asking for more
money. If they should strike it would tie up
Alystic Wharf.
The W. L. Palmer Company, of Aledway, with
a capital of $75,000, has been granted a Massa¬
chusetts charter. The firm deals in hay, grain
and fuel. The incorporators are : Edgar J.
Leland, Benjamin P. Emerson, Charles A. Digney
and Walter L. Palmer.
The largest steam collier ever built in this
country for the merchant service has been or¬
dered by the Darrow-Mann Company. The boat
will have a capacity of 12,500 tons of coal and
will be ready for delivery next June. She will
cost $750,000 and will ply between Boston and
southern ports.
President Cantley of the Nova Scotia Steel &
Coal Company, in a statement recently given out
said the company is negotiating for large foreign
business, and to provide increased working capi¬
tal the directors are considering a sale of treas¬
ury securities. The output of coal for September
was the largest for any month in the company’s
history.
Buffalo Trade.
Buffalo, N. Y., October 28. — (Special Corre¬
spondence.) — Anthracite shipments by lake for
the past week were on a largely increased scale,
both in total and number of cargoes, and
amounted to 156,451 tons. The largest part of
the coal went to Duluth-Superior, which took
70,300 tons, with 54,400 for Milwaukee, 24,000 for
Chicago, 7,000 for Sheboygan, 500 for Port
Huron and 251 for Little Current. The total
number of cargoes was twenty-five. Freight
rates are holding stiff, especially with small boats,
for these are now scarce. Many of the larger
vessels are leaving here without cargoes, because
they are finding plenty of down freight to bring
and do not care to delay here for coal.
The demand from dealers has dropped off
some on account of mild weather, but there is
still a fair tonnage moving. The movement of
coal from the mines has slowed up because of the
shortage of cars. There are few box cars to be
had just at present, because so many of them are
going into the grain trade. At present the move¬
ment of grain from this port calls for 1,500 cars
daily, and other railroad freight also is moving
in large volume.
The bituminous demand is large, considering
the shortage of cars and of labor, and prices
have been advanced during the past week or
two. It is not so easy to make prompt shipments
as a few weeks ago and coal now takes about
twice as long to reach destination. Everybody is
counting on a stiff market for some time ahead,
and operators are not desirous of tieing up coal
unless an advance is paid. Slack is bringing $2.15
here, with a prospect of selling ten cents higher
in the near future. Three-quarter coal is quoted
at $2.65 to $2.70. The Canadian market is still
slow, but the inquiry for coal on this side of the
line is good and mines are generally working at
as full capacity as cars and labor will permit.
The coke market is now stronger than for
some time. Stock coke is not procurable with¬
out a special request for quotations and many
producers say they have none to offer. For
seventy-two-hour foundry coke the ovens are
making a price of $4.50 delivered here.
Buffalo Trade Briefs.
Edward D. Snyder has bought out the coal
business of Alichael J. Seeger at Lancaster, this
county.
F. W. Niederlan'der, sales representative of the
Lehigh Valley Coal Sales Company, Cleveland,
was at the local office of the company part of last
week.
W. W. Snyder, president of the Concrete Stone
& Coal Co., Niagara Falls, has gone to the Pacific
coast to visit relatives at Pasadena, and take in
the exposition.
The D. L. & W. Coal Co. has started work on
its new slip adjoining the present location of the
coal trestle on North pier, which must be given
up by order of the government.
E, J. Frauenheim, Jr., president of the Logans-
port Coal Company, was here this week, having
driven from Pittsburgh in his automobile. He re¬
ported a strong market for coal in that city.
It is expected that the output of the new
Cadogan mine of the Shawmut Mining Company
will reach 500 tons a day by November 1st. Then,
if the market continues active, the amount will
be increased quite rapidly.
E. T. Bline, sales agent of the Pennsy Coal
Company, returned on Thursday from Franklin,
Pa., where he went on account of the serious ill¬
ness of George P. Cronk, treasurer and general
manager of the company, who has been suffering
with typhoid fever.
Frank H. Goodyear, wjjo is connected with the
Goodyear lumber and coal interests, was married
on October 23 to Miss Dorothy Knox, the cere¬
mony being performed at the home of the bride’s
mother, Mrs. S. H. Knox, by the Rev. A. V. V.
Raymond. -After an eastern wedding trip Mr.
and Mrs. Goodyear will spend the winter in
California.
J. W. Trounce, .sales agent of the Buffalo &
Susquehanna Coal & Coke Co.; J. R. Barnett,
assi.stant sales agent of the Shawmut Coal &
Coke Co., and J. T. Roberts, general sales agent
of the Widnoon Coal Mining Company, were in
attendance last Friday at the annual meeting of
the New York State and Western Penn.sylvania
Coal Merchants’ Association at Syracuse.
W. C. Blodgett, western agent of Dickson &
h'.ddy, whose territory includes Oswego, says that
the lake shipments from that port are increasing
year by year. An item to the contrary was lately
published, evidently coming from a source that
was not well-informed on the subject. Oswego
is making an effort to profit by the enlargement
of the Welland canal, though nothing very active
appears to have been done since a meeting was
held on that subject several months ago.
Baltimore Trade.
Baltimore, October 28. — (Special Correspond¬
ence.) — Too much business for the supply;
prosperity too great for the measure of coal to
he di.spensed. That tells the tale of the fuel
trade here just at present. If the trade thought
cars were scarce the week before last, the con¬
ditions of last week made those of the former
period look like a reign of plenty. Many dis¬
tricts were almost without cars on certain days
of the past week. In others, where hundreds of
cars had been requisitioned, the number delivered
ran from thirty to fifty.
Every mine interest and every shipper of coal
was trying to figure out how to meet contract
obligations. Nearly every order was back on de¬
livery. Under such circumstances numerous
fuels were entirely out of the open market. It
was only the occasional small independent who
had not tied up his supply that seemed to have
coal to offer.
Under the circumstances the fixing of a price
list was rather uncertain. Some of the quota¬
tions are practically “what they would be if the
coal was to be had.” The list is about as fol-
»
F. O. B.
F. 0. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
. $1.00@1.10
$2.43@2.53
Run of mine .
. .90
3.33
Slack .
2.23
Somerset —
Best .
. 1.45
2.63
(iood .
. 1.35
2.43
W. M. R. R.—
r reeport .
. 1.00
2.18
P. R. R.—
Best South Fork .
2.58
Miller vein .
. 1.25
2.93
f)rdinary .
. 1.05
2.23
Everj" effort was bent by the railroads to give
the port a fair supply of fuel for tidewater
movement. Beautiful weather conditions and a
let down in grain shipments allowed more ves¬
sels to report here for coal than for some time
past. Every car with coal that could be handled
promptly for this trade was thrown that way.
The result was that the past week saw a gain of
good proportions in the export business as com¬
pared with several weeks previous. A total of
32,636 tons was moved from here for foreign
ports. Ten new charters were announced during
the week, the largest number for several weeks,
as vessel bottoms have been extremely scarce.
Anthracite men here are probably happier than
their bituminous brothers, for they are better
able to supply the growing immediate demand be¬
cause of pretty good yard storage. Supplies in
some cases are being depleted at a time when
they are often held intact in favor of deliveries
direct from cars, but the hope is expressed that
the car situation will improve so that this drain
can be made good before needed for supply in
tight winter weather.
Pushed hard by the growing coal tonnage of¬
fered, the Western Maryland Railroad has or¬
dered 2,000 more steel hopper cars. The con¬
tract was let to the Pullman Company, and rep¬
resents an outlay of nearly $2,000,000.
The A. H. Bull Steamship Company has placed
contracts for three new steamers with the Mary¬
land Steel Company. There are now nine
steamers under contract at the plant and the
marine department activit}' is thus assured for
some months to come.
Lehigh & Wilkes-Barre Coal Company is
said to be in the market for 500 tons of struc¬
tural steel for the purpose of building a coal
handling plant at Ashley, Pa.
1
rHE Black Diamond |
Vol. 55. No. 19
NOVEMBER 6, 1915 $3.00 Per Year
Question Growing Out of Anthracite Tax Decision.
PHII.ADELPHIA, November 3. — (Special Corre¬
spondence.) — Along in 1913 the Pennsylvania
state legislature passed an act demanding a two
and one-half per cent tax on the value of coal
at the mouth of the anthracite mines. It did
not matter whether this coal was to be used in
the state of Pennsylvania, in New England or
in Canada, or where. It did not matter whether
there were Federal laws regarding impost taxes
of the state, or not. These legislators looked with
hungry eyes on the coal producers and they were
going to have an extra tax whether or no. It
did not matter whether the coal companies already
are taxed for their holdings of property ; not at
all. The whole thing was whipped out in the
halls of legislature and the anthracite state tax
law was passed.
Then came the hard coal men with a suit to
test the constitutionality of such a tax. Several
suits were filed, but the merits of the case were
directed through that entered by the Alden Coal
Company. In the Dauphin county courts — at
Harrisburg — the first hearing was held in the
court of common pleas. The presiding judges
held that the state tax was constitutional.
While these proceedings were on, the state
legislature of 1915 was in session. There was
belief in secret that the state had a weak case.
Still the greedy eyes of the legislators were
turned hard coalward. It had been the intention
of the first tax law to apply the funds derived
from the tax to betterment of the state roads.
The gentlemen from the hard coal regions said
that they wanted this changed. They wanted
a division of the funds so that the greatest pro¬
portion of the return from the tax would be spent
on roadway work within the counties in which
the mines are situated. After much wrangling,
a fifty-fifty basis was agreed upon. Fifty per
cent of the coal tax should be spent in the coun¬
ties in which the funds originated and fifty per
cent spent in other counties. The amount of the
tax continued to be two and a half per cent.
Then came the sitting of the supreme court of
the state in Pittsburgh on October 27, 1915. At
that time Judge Stewart handed down his opinion
on the coal tax in which appears the following
declaration :
“When the necessary effect of the legislation
is to create inequality of burden as we here see
it, are those complaining of the injustice to re¬
ceive no other answer than that, while the con¬
stitution promises them equality in the matter of
taxation, that because it failed to place restric¬
tion upon the legislature’s right to distribute the
tax it collects, that therefore the purpose of the
legislation is not to be inquired into? If con¬
stitutional requirements are to be circumvented
bv such simple and easy process of reasoning, the
question may yet be asked derisively of the con¬
stitution, ‘What is all this worth?”’
Incidentally the act levying a tax on anthracite
coal mined within the state, as passed by the legis¬
lature of 1913, was declared unconstitutional and
inoperative.
No suit has been entered to test the new act of
1915, so that this is still in force. It may be that
the long process of law that finally ended in the
decision above will have to be gone through again.
Meanwhile, the newspapers of the state are ad¬
vocating the use of anything from thumb screws
to a black jack to recover from the coal pro¬
ducer the estimated nine millions of dollars that
the tax is supposed to have produced. Coal men,
from retailers to producers, have been libeled
without stint in this campaign to stir up senti¬
ment for a refund.
Incidentally, they say nothing about the gentle¬
men who placed a tax on every ton of hard coal
used since the law of 1913 went into effect. Are
they or the coal operators responsible for the
law?
Incidentally, not enough members of the assem¬
bly are elected from the hard coal regions to pass
such a law. They must have the aid and as¬
sistance of the members from the city where an¬
thracite is the universal fuel. If the hard coal
While the 1913 Law Is Killed, Its Dupli¬
cate of 1915 Lives — Money Paid By Con¬
sumers Is Claimed By the State —
Intricacies of Making a Refund.
tax is such a vital issue, why not call to account
those who brought it into being as well as the
coal man who merely did what the state told
them to do?
One more question arises: The attorney-gen¬
eral of the state has said almost every day since
the tax law was declared unconstitutional :
“Still, we’ll make the coal companies pay, pay,
pay.” _ I
Since he is so eager to get the money, why has
he not long ago cleared the doubt as to the con¬
stitutionality of the law of 1915? That matter
is still unsettled.
Regarding the collection of the tax, an edi¬
torial of the Philadelphia Bulletin says :
“The anthracite tax is without justification.
The state of Pennsylvania, rich and resourceful,
doesn’t need money badly enough to resort to such
iniquitous processes of assessment. If the courts
do not finally reject the scheme, public sentiment
should be persistently agitated to accomplish its
repeal by the next legislature, even though the
non-coal-producing sections of the state mu.st
overcome the greed of the coal counties which
made the enactment of the tax law possible.
The action taken by the auditor-general of
the state would not indicate that public officials
think the way the Bulletin does.
For example, in the dry tomes of the state
statutes there is what is known as an escheat
law. The legal lights say that this can be applied
to the coal tax and that suit can be entered to
return the money to the state.
Thus on Monday of this week there appeared
the following statement from Attorney-General
Powell :
“The informations are made by L. Floyd Pless,
assistant deputy auditor general, who filed them
with the chief clerk after the department opened
for business on Friday, the day following an¬
nouncement of the supreme court’s decision.
There are 138 in all, that being the number of
operators who filed reports under the act of
1913.
“This action was taken in the interest of the
state, and in each information the assistant deputy
waived all claim to fee or compensation as in¬
formant. He signed each, not as an official, but
as a citizen. If any of the amounts thus covered
are escheatable, the filing of these informations
precludes such action by persons moved by de¬
sire for personal gain, and insures to the state
a larger net amount than would be realized if
the shares had to be paid.
“If the act had been sustained, a total amount
approximating $g, 000,000 would have been pay¬
able by the operators. Whether any of the
amounts that would have been payable' do not
belong to the operators, but to unknown buyers
of their product, is a question that, under the cir¬
cumstances, is at least debatable. The whole
matter will be laid before the attorney-general,
and the department will be guided by his opinion.
“Should he advise prosecution of the informa¬
tions, each case will present a separate problem.
The situation is not one in which it can be said
that if one amount covered by an information is
escheatable all are escheatable.”
Imagine the result! One hundred and thirty-
eight actions, each to be tried with thousands of
interveners in each action. The Jarndyce vs.
Jarndyce case that Dickens made famous would
not be a circumstance compared with the length
of time that it would take to thrash out all this
grist.
However, the supreme court declares that the
state cannot collect this tax, because funda¬
mentally the law that demanded it was wrong.
Rut the state officers declare that they will get
the money. Isn’t this question proper?
Since the money cannot be collected legally,
will the hard coal operators be sandbagged to
the tune of nine million dollars?
By toilsome bookkeeping, which the state de¬
manded in trying to get its pound of flesh, sev¬
eral of the coal companies have kept track abso¬
lutely of every ton of coal mined and on which
the state tax has been paid and by whom. Thus
when all of this senseless effort at taxing is
ended the money can be turned back to the re¬
tailer or consumer to which the companies sold
their coal. Whether the retailer can return the
money to the individual buyer is a different
matter.
Next comes the constitutional question that
was raised in the suit. As an example: If the
A. Coal Company were selling to the B. Retail
Coal Company in Boston, and by reason of the
state tax the Boston company had to pay an
excess, can the state of Pennsylvania commandeer
money that came in taxes from without its bor¬
ders? If the Boston company has its bills to
show that it paid an amount above the regulated
price of coal to satisfy a state tax that was
unconstitutional, has not the Boston company the
right to demand its money and to sue for it if
necessary? So, then, the state is going to put a
double tax on the coal company. By a process
of escheatment they are going to take away from
the coal people the amount that the tax would
have produced and the courts will give the re¬
tailer, consumer and what not, the amount col¬
lected by the law.
And there is nothing to indicate that the ultF
mate consumer will not demand a refund Al¬
ready Director of Supplies Loeb of the city of
Philadelphia, has declared that lie will force every
retailer who has supplied coal to the city since
the tax was slapped on to pay back every penny
that has been obtained through that medium. "He
estimated that about $30,060 or $.35,000 should be
returned to the city.
Here comes trooping another host of troubles.
The nine millions that the state proposes to use
Its escheat machinery to get, exists— but it does
not. That is, no settlements have been made on
the tax for 1914 or for 1915. The total amount
that was paid in to the state treasury was $19,965.
This represents payments by five operators, the
largest of which was $18,500. Now it is a good
thing to catch your rabbit before you fry it. In
other words, the tangible funds that the state has
to work on is greatly reduced for actual action.
And, another thing. Consumer A. has kept his
bills and wants his money back from retailer B.
But retailer B. must get his money from middle
house C. and then there is operator D. who ori¬
ginally set the money aside. What a tiresome
process of collection.
Where will the state come in when it tries to
escheat the money that is rightfully due to the
careful buyers of coal who have kept the evidence
that they paid money for a tax?
Coal buyers from all quarters of the country
and even a few foreign buyers of hard coal have
a finger in this pie. They have no reason to pay
tax to the state of Pennsylvania when the su¬
preme court of the commonwealth says that an¬
thracite can’t be taxed. They will want their
money. What will they think of the system that
held them out of their coin for almost two years
and a prospect of many years more?
So many angles can be presented in the case
that it would take a well-sized volume of tackle
them all. For instance, what about the coal that
is dredged from the Susquehanna river? What
about the coal that was in the washeries prior to
June 1, when the 1915 law went into effect and
which is taxed as well as the coal that is mined?
When is the farce going to be called off? The
muddle would he funny if it were not so serious.
The 1915 blunder is as serious as was its 1913
half-brother. And the auditor general’s escheat
proposition is nothing to be snickered at. Mar¬
keting coal, goodness knows, has enough angles
to produce gray hairs, but when the law steps in
and makes a farce of the whole thing, what
then ?
366
THE BLACK DIAMOND. [November 6
A Fold in Anthracite Vein Saves
Coal stripping is becoming a very popular
commercial enterprise, but a stripping in which
all the risk is taken by the contractor is some¬
thing of a novelty. Commonly the amount of
coal in the ground is known or can be easily
estimated, so that there is no great uncertainty
on that score. Then the owner or lessee of the
property invests in the necessary steam shovels,
track, cars and other equipment and proceeds to
strip off the overburden and ship the coal — in
which case it may be said that there is no risk
at all if the preliminary investigations have been
made complete enough. Of course, there may
be some rock harder than was expected, or some
clay that will not stay piled, but generally speak¬
ing and admitting some exceptions, the under¬
taking is free from the gambling element.
Thickness of Big Seam.
Or perhaps the owner or lessee, in case he can
not raise the money for the equipment, or lacks
experience, or wishes to limit his activities, may
contract with some one for the removal of the
overburden. In this case the contractor is usu¬
ally paid a certain price per yard for the removal
of the overburden and has no interest in the coal.
The contractor knows what stripping costs and
his price includes the cost and profit, so that he
runs little risk. The operator takes a chance on
the market conditions. In either case there are
few uncertainties and such as exist are divided.
There may be errors in judgment, changes in
market conditions, or accidents, but the actual
conditions of the stripping are known.
At Ebervale, Pa., near Hazelton, there is a
case which involved a real gamble. Here the
Big or Mammoth Bed outcrops on the edges of
a basin whose long axis is more nearly east and
west than north and south. The stripping is on
the southern side of this basin. This coal had
beeii worked in the early days of anthracite
mining, so long ago and under such conditions
that there could be no certainty of the amount of
coal removed.
The coal near the outcrop dips at about 50
degrees and is from 25 to 30 feet thick. This
is the famous Jeddo coal, which is of such ex-,
cellent quality and reputation that almost any¬
thing from the district commands a premium in
the market. Just below the Big Bed and sep¬
arated from it by a divider about 13 inches
thick is the Wharton Bed from 4 to 5 feet thick.
The latter bed was not considered worth mining
in the early days so it was left untouched. The
Big Bed was worked out, but “worked out” had
a very different meaning then and it was known
that a good deal of coal was left in the ground.
The property was in the hands of the G. B.
Markle Company and they wished to recover the
coal but, having no certain knowledge of the
amount remaining, they hesitated to let a con¬
tract for the stripping on the usual terms, that
is at so much a yard for the removal of the
An Unexpected Development After Work
Is Well Under Way Makes an Opera¬
tion of G, B. Markle Company Highly
Profitable.
overburden, which would leave them the risk of
finding enough coal to make the venture profit¬
able.
The situation came to the attention of Messrs.
Benjamin and* Butler, practically the Central
Pennsylvania Quarry, Stripping and Construction
Company, who have been stripping coal lands for
several years and have carried out some of the
Another View of Vein.
most extensive of the anthracite strippings.
These men looked over the ground and made a
bargain with the G. B. Markle Company of a
kind which is very rare if not unique in coal
stripping. Practically they undertook a salvage
proposition, getting nothing at all for removing
the overburden, but receiving a certain sum per
ton for coal delivered at the breaker.
Stripping Plan.
Of course, they had something on which to
base their judgment. They knew that it would
have been impossible to drive the breasts to the
surface without letting in earth and water and
they thought that, in all probability, the breasts
were not driven to the full thickness of the bed,
but some coal was left for a roof. Then too,
the cave holes on the surface gave an idea of
where breasts had been driven. They knew
that the Wharton Bed was untouched. Also
they had plenty of equipment and a repair shop
of their own in which they could repair or re¬
build any of their machinery, so that there would
be no long delays occasioned by the failure of
any part of the equipment. Besides these things
there were some fifteen years of successful ex¬
perience.
Under these conditions operations were com¬
menced and more than $200,000 was expended
before a ton of coal was delivered. Now it is
proved that there is even more coal available
than the contractors expected and their chance
of making a profit out of the undertaking is even
better than they thought when they risked nearly
a year’s time and abort a quarter of a million
dollars on their judgment.
Not only did they find that the coal near the
surface was largely unworked, as they had sup¬
posed, but that there was a roll in the coal which
threw the possible stripping limit far beyond
where it was supposed to be. As has been said,
the coal dips about 50 degrees and if this dip
had been uninterrupted the profitable stripping
depth, which the contractors estimate at 120 feet,
would have been reached very quickly. This
anticline, which is not far from the outcrop, con¬
tains a large quantity of practically virgin coal and
displaces the point at which thickness of over¬
burden makes stripping unprofitable. Beyond
this the coal dips at about 45 degrees.
Stripping_ is done with Marion steam shovels
of which eight are now employed, six Model Cl
and two Model 40. The Model 61 shovel has a
dipper which holds about 2j^ cubic yards of
material. The average daily work of a shovel is
about 250 cars, holding 4 cubic yards of material.
The highest day’s output of the coal shovels was
466 cars.
A large part of the overburden is soft enough
to be dug without blasting, yet there remains a
considerable amount which must be broken with
explosives. No very hard rock has been en¬
countered, though in another stripping adjoining
this some has been found which is very hard.
The overburden removed is dumped near the
strippings, but far enough away to be sure that
the depth of coal below the surface would make
stripping at this point unprofitable, in fact, most
of the overburden is dumped on ground where
the depth of coal is about 1,200 feet. At the
present time about two million cubic yards of
overburden have been removed and about a half-
Ebervale Stripping Indicating the Grades of Tracks.
No. 19]
367
THE BLACK DIAMOND.
million tons of coal ha^•e been delivered at the
breaker. Besides this there is a refuse dump
which it is estimated contains 75,000 tons of coal.
It is impossible to load coal with a shovel with¬
out mixing some 'rock with it, and cars which
contain too much rock to be acceptable at the
breaker are dumped here with the idea that this
shall later be reclaimed by washing. At present
the Markle company has an inspector watching
each shovel which is loading coal and any car
which he thinks not clean enough is rejected
by him and goes to this refuse dump.
The Federal Trade Commission announces
that it will soon send out 30,000 letters of inquiry,
followed up by a brief schedule, as a part of the
investigation of conditions that affect American
foreign trade. Congress has empowered the Corn-
mission to make an investigation of these condi¬
tions and to report the facts with such recom¬
mendations as it deems advisable.
The war in Europe has so affected the trade of
the world that American enterprise has a pecu¬
liar opportunity to supply the wants of foreign
markets and to secure a greatly enlarged share
of their trade. The Commission, therefore,
deems it to be its duty to complete with all pos¬
sible dispatch an investigation which may assist
Congress in determining what action may be
required in the public interest for the promotion
of American foreign trade.
By public hearings throughout the country and
by other means the Commission has been gather¬
ing facts and information as a basis for its report
to Congress. It now wishes to obtain information
from a large number of men who were unable
to annear at the hearings. For this purpose these
letters and schedules will be sent out.
About 20,000 letters will go to American manu¬
facturers and producers, and about 10,000 will
be sent to other authorities on foreign trade con¬
ditions, such as export commission merchants,
manufacturers’ export agents, importers, dornes-
tic merchants, publicists, lawyers, economists,
bankers, engineers, etc.
A return postcard accompanying the letter is
designed to give the Commission a broad yes or
no referendum on the advisability of export com¬
binations, and to put it in touch with those who
are willing to assist the Commission by furnish¬
ing further facts and suggestions. To those who
state that they will cooperate with the Commis¬
sion in furnishing facts, etc., the schedule of in¬
quiries will be sent, covering the topics on which
the Commission desires information.
Through this letter of inquiry and schedule
the Commission particularly desires to get the
facts from many different points of view and
from all sides of controverted questions. Thus,
the 20,000 names of manufacturers and producers
include every important branch of American in¬
dustrial enterprise and represent every shade of
opinion in regard to the present problems of our
foreign trade. The list takes in big business and
little business; companies that are old in export¬
ing and firms that are new ; interests that want
combinations among American manufacturers for
export trade and men who are opposed to such
organizations ; manufacturers of specialties and
producers of staples ; concerns whose foreign
trade is limited to South America or Europe and
those whose products are sold all over the globe.
The 10,000 other persons to whom the letters
of inquirv will be sent include even greater di¬
versity of interest and thought. By obtaining
facts and suggestions in this manner from a large
number nf persons with different experiences and
poini.=- of vicv,' the Commission expects to secure
a great body of valuable information.
The schedules were prepared after careful con¬
sideration of the facts developed thus far in the
investigation. In drafting the inquiries the Com¬
mission has consulted noted economists and ex-
Very little trouble has been caused by water as
most of that which falls or drains into the pit
finds an access to the old workings and is later
pumped out from one -of the mines working the
same beds at lower levels. However, between
the local anticline and the outcrop there is a
basin in which some water collects. This is
pumped out over the anticline and is drained
down into the workings. It is so acid that it is
sometimes necessary to renew parts of pumps
every day.
Coal and rock are handled in side-dump cars
by small locomotives built by the Vulcan Iron
Works of Wilkes-Barre. These locomotives are
of about twenty tons weight. They are called
upon to perform very hard service as the track
grade in some places is as much as ten per cent.
There are thirty-six of the locomotives in this
stripping or “section.” There are 250 cars each
holding four cubic yards. Two hundred are
used for coal and fifty for rock. It is possible
to handle the rock in comparatively few cars be¬
cause the haul is short.
On the whole the arrangement is working very
well. The G. B. Markle Company is getting its
coal, and much more of it than it expected, and
Messrs. Benjamin and Butler are making more
money than they e.xpected. It is a rare gamble
in which both sides win.
perts, leading business men in many important
lines, and representatives of the Chamber of
Commerce of the United States, the National
Association of Manufacturers, the American
Manufacturers’ Export Association, the National
Foreign Trade Council, and other organizations
interested in the extension of export trade.
The schedules are brief and have been pre¬
pared to facilitate convenience in replying. Since
foreign trade is of especial interest just now, the
Commission is expecting a prompt response to
this request for suggestions and information.
Some of the inquiries are designed to ascertain
the general understanding of business men as to
Some New Law on
Some law as to buying and selling merchandise
that is practically new to this country has just
been made by the United States court for the
northern district of Illinois. The decision has
a much wider influence than the decision of a
state court would have.
The question involved was this : When A sells
B, a dealer, certain merchandise with a specific
guarantee that it is of certain (piality, and B,
relying on the guarantee, sells it to a customer,
C, with the same guarantee, and C uses it and
finds it is not what it was represented to be, of
course C can at once come back on B and col¬
lect damages. But heretofore the law has al¬
ways been supposed to be that before B could
go back on A for his damages, he, B, must have
paid C the damages which C claimed of B, and
if B never paid C, B could never collect any¬
thing from A.
The United States court, in the case I refer
to, has changed all this. It decides that B can
go after A right away, before he has paid C,
and even though he may never pay C. This
upon the theory that B’s liability to pay C is
sufficient ground for his suit against A.
This is exceedingly radical law, in my judg¬
ment, and will introduce a new element into
thousands of mercantile transactions.
The facts in the Illinois case are interesting.
The merchandise involved was cucumber seed,
but readers will understand that the law is the
same no matter what it was. A wholesale
dealer in seed sold to a retailer a quantity of
seed which he represented to be “improved Chi¬
cago pickling.” The retailer in turn sold it to a
grower under the same warranty — that it was
“improved Chicago pickling.” The grower plant¬
ed it, but found when his crop came up that the
seed was not what it was represented to be. lie
accordingly notified the retailer of what had hap¬
pened, but made no effort to enforce his claim
for damages and might never have enforced it,
according to the evidence.
The status then was that the retailer was fac¬
ing liability for the damage sustained by the
grower, although he had not yet been damagcfl,
and would not be, unless the grower got after him
and made him pay. Of course the cause of the
damage was the false guarantee which was given
whether the antitrust laws prohibit export com¬
binations among American manufacturers, and
the views of men generally as to whether such
combinations are in the public interest. Other
questions are expected to develop highly interest¬
ing information in regard to “dumping” by for¬
eigners, either in the United States or in other
markets. Information is also sought concerning
the operations of foreign combinations, and other
conditions which affect American export trade.
The Commission desires full and frank state¬
ments in reply, and the inquiries have been drafted
with this purpose in view. Thus the persons
answering may designate any portions of his
reply which he wishes held confidential and the
Commission will respect his wishes in this regard.
Where the answers received suggest that addi¬
tional valuable details and facts are available
the Commission will supplement the schedules
with a few further inquiries which will elicit fuller
statements. All this work will be quickly rounded
out and completed by visits from agents of the
Cornmission, in a few cases, if the study of the
replies shows this course to be desirable.
In announcing the commencement of this work
the Commission was careful to state that the
schedule inquiries are only one part of its study
of conditions which may affect American export
trade. In addition to the schedule inquiries and
the series of public hearings which have been
held, this study as planned includes several other
important divisions. For some time employees of
the Commission have been engaged on systematic
research \vork covering trade and financial pa¬
pers, official publications and reports of the
United States and foreign governments, and other
published material. This has included not only
publications in English, but also those in German,
Erench, Italian and other foreign languages. In
addition, agents will be sent abroad to study con¬
ditions on the ground. In this part of its work
the Commission will also receive assistance from
the Department of State through the United
States Consuls, and from the Department of
Commerce through the Commercial Attaches.
Through these different divisions of the work the
Commission is conducting an extensive investiga¬
tion and hopes to make a comprehensive report
to Congress.
Buying and Selling.
by the original seller, and which was carried on
by the retailer to his customer, the grower.
The courts have always agreed that the minute
the retailer settled his customer’s claim of dam¬
age, he, the retailer, could make similar claim
upon the original seller. Up to this time, how¬
ever, they have not generally ruled that the re¬
tailer could go back on the original seller before
he had actually sustained the damage that he
claimed. The Illinois court, however, ruled that
he could, and gave him damages. Naturally
the grower can now immediately demand his dam¬
ages from the retailer, and the latter, unless he
goes bankrupt, will have to pay them.
Here is another possibility : Let us say that
the retailer in the above case recovers his dam¬
ages in full from the original seller. He then
succeeds in settling his own liability to the
grower for fifty per cent of its face — again he
will be in the position of having collected dam¬
ages that he had not sustained.
This decision, in its application to all lines of
mercantile business, has almost unlimited possi¬
bilities. If a grocer sells canned molasses, packed
by a manufacturer, to a customer, and the tin
explodes and injures the customer, the grocer can
sue the manufacturer — if there was a guarantee
that the tin would not explode — before he lias
been sued himself and when he might never be
sued.
In my humble opinion, the new law is bad law.
It seems unanswerable that no man should be per¬
mitted to collect money from me merely on a
chance of havinsr to pay it out to someliody else.
The time to collect damages is when there are
damages.
(col’YRir.HT, NOVEMBER, 1015, BY EETON J. lU'CKI.EY.)
The Pittston fPa.) Gazette states that large
(|uantities of coal are bein.g put into storage at
several points along the Lehigh Valley Railroad.
The Gazette states that at the Coxton yard about
lo.ono tons of bituminous and 20,000 tons of an¬
thracite buckwheat will be stored. This is in¬
tended for the use of the company’s locomotives
running out of Coxton. Another report states
that large quantities of fuel are to be stored at
other terminal points along the line, notably at
Delano and Manchester.
Trade Commission Extending Export Inquiry.
THE BLACK DIAIMOND.
' [November 6
The briquetting plant.
presses are fed to an eigliteen-inch belt conveyor
running in a tunnel from the briquetting plant to
the storage building. Here the conveyor delivers
to a bucket elevator, which discharges the bri¬
quettes at the top by means of a four-way chute
to the various compartments of the bunker.
New Furnace Room Device.
Boiler efficiency depends upon heat libera¬
tion within the furnace and heat absorption
by the boiler. These two operations have been
shown dependent in turn upon variables in¬
volving pounds of air, pounds of fuel, gas tem¬
peratures, baffling, soot, scale and other much
discussed questions of combustion themselves
dependent on draft, fuel bed, and relative ca¬
pacities of grate surface and absorption sur¬
faces.
The greatest problem of all has been the
human element, for efficiency is after all the
most exact balancing of all these mechanical
factors within the compass of the intelligence
or knowledge of the fireman.
A new recorder, known as the Wilsey^
placed within view of the fireman upon the
front of the furnace, automatically and in¬
stantly informs him of the effects, good or
bad, of any or all changes or adjustments,
whether in the fuel itself, the method of fir¬
ing, the combustion, or the absorntion. This
information is not only indicated, but recorded
on a regular time-chart, so that the fireman
may maintain an even standard of efficiency.
The instrument would betray every faulty con¬
dition of operation, such as holes in the fire,
soot, scale, cracked baffling, improper thick¬
ness of fires, or air leakage, as well as show
the comparative values of wet and dry firing,
fuels, and men. It is even stated that after
continued use it is possible for the engineer
to closely estimate, through the contour of the
recorder curve, the nature of the fault which is
responsible for a drop in efficiency.
Thus, instead of depending upon the fire¬
man’s guess for boiler room efficiency, the
chief engineer may set a certain standard to be
maintained on the recorder at all times as
closely as possible and rest secure that in hold¬
ing to it the men must fire thinly and prop¬
erly, leave side doors closed, and so save fuel.
Any departure from this standard is instantly
apparent on the recorder, and the trouble may
be traced quickly to its cause, whether this
be a mechanical or personal fault. Mechan¬
ically, two platinum loops are placed, one in
the combustion chamber, the other in the
boiler outlet, so as to form the two sides of
a Wheatstone bridge, which is simply a device
for recording ratios of electrical currents. In
the circuit across this bridge is a galvanom¬
eter provided with a series resistance and
shunt. A shnnt current is passed through the
bridge, and as the resistance of the patinum
The inclined conveyor.
elevates and discharges it through a chute upon a
fourteen-inch belt conveyor. This conveyor is
eighty-four feet long, and is equipped with a Rob¬
ins hand propelled tripper for discharging the
material from the conveyor. The Robins hand
propelled tripper is essentially the same as the
Conveyor over storage pipe.
Robins automatic tripper, except that it is moved
from point to point by means of a hand crank
geared to one of the axles. The fourteen-inch
belt conveyor, tripper, and storage pile underneath
are shown.
Reclaiming is accomplished by means of a four¬
teen-inch belt conveyor, ninety feet long, in a con-
The Mingo Coal Corporation has closed its
office in the Columbus Savings & Trust Com¬
pany and opened headquarters in Cleveland. The
enterprise is composed of Eastern men, who have
an original co-operative plan for developing a
large tract of West Virginia coal land, each
shareholders, however small, being given a fee
simple title to a portion of the land. >
Plant of the Coal Boulet Company.
The Recorder.
sides varies with the temperature, the bridge
is thrown out of balance in proportion with
any ratio of difference in the temperature be¬
tween the combustion zone and the boiler
uptake.
By making the resistance coils in series in¬
versely proportionate to the specific heats of
the furnace gases, the needle of the galva¬
nometer will be deflected in the ratio of the
combined effect of the temperature and specific
heats at these two points. Radiation and
other losses being compensated for by means
of coil and shunt, it is apparent that with
proper graduation of the dial and calibration
of the galvanometer, the reading of the dial
will be the exact combined efficiency of boiler
and furnace. The movements of the needle
are recorded on the recording gauge as well.
It is evident, then, that the recorder auto¬
matically and accurately takes the various
data necessary to the computation of efficiency
The Dial Chart.
and completes the task by showing the ratio
of the heat utilized to the initial heat lib¬
erated in the furnace, which result is the true
combined efficiency of boiler and furnace.
It is further evident that in actual practice
such exact calibration would not be needed.
Radiation losses are close to constant, and may
be regarded as inevitably present. Sudden in¬
crease of such loss would instantly be noticed
on the recorder, and it is usually the case that
such losses can be eradicated.
One of several successful conveying systems in
operation at briquetting plants is that of the Coal
Boulet Company, New York City. The equip¬
ment here, handling coal dust and briquettes, pos¬
sesses uniciue features of interest.
The coal dust is dumped by carts into a hopper
at the foot of the belt and bucket elevator, which
Crete tunnel underneath the storage pile. Gates
in the roof of the tunnel feed the coal dust
through the chutes to the tunnel conveyor, which
delivers it to a second belt and bucket elevator,
inclined at an angle of forty-five degrees. The
buckets of this . elevator are equipped with clips,
which run on guides and prevent the elevator belt
from sagging. The coal is discharged from it
through a chute to the shaking screen. The over¬
size material passes to a crusher, and the screen¬
ings, together with this re-crushed coal, are then
taken by a screw conveyor to a bucket elevator.
This in turn delivers the coal dust to the mixer
and moulding presses.
The finished briquettes from the moulding
No. 191
THE BLACK DIAMOND
369
Making ’Em Look in the Window.
The coal dealer, who is confronted with the
ever-present problem of making his windows, if
he has windows, which may be seen from the
street by any considerable number of people, at¬
tractive to passersby, may have come to the con¬
clusion that it is a hopeless task. But this is
certainly not the case, if he will give the ques¬
tion a little thought.
For instance, one dealer, who happened to no¬
tice in a car of coal, which was delivered at his
yard, an especially large block, had it placed in
the window with this placard, “How Much Does
This Lump of Coal .VVei.gh?” A great many peo¬
ple stopped and made a guess, although there,
was no prize offered in connection with it, and
some of them even came into the office to record
their estimate, and to see how close they had
come to the correct amount.
This was a rather small town, and people in
communities of this sort are more easily in¬
terested than in larger cities ; but, at all events,
the dealer heard so much from his simple little
display that he finally found it desirable to put
an advertisement in the weekly paper giving the
exact size and wei.ght of the lump. He was a
good enough merchant, also, to go further and
explain that the domestic coal which he deliv¬
ered was the lumpy, blocky sort, including a lot
of big lumps like that on display.
Making a Virtue of Necessity.
The small dealer, doin.g a coal business on a
“shoe-string,” is often berated as being a “snow¬
bird,” and as having no permanency or reliabil¬
ity. Often this is the case; but it is certain that
the dealer, who is able to handle only a couple
of cars of coal at a time has no easy task “get¬
ting by” on this mar.gin. The man who can suc¬
ceed, stay in the business, and gradually enlarge
his volume must have some good stuff in him.
-A. concern which is now doing a restricted
business has recently been makin.g capital of its
necessities by featuring the freshness of its stock.
Instead of saying, “We are able to carry only
a little coal on our yard at a time,” which would
not have been much of a recommendation, this
dealer suggested diplomatically in his newspaper
announcements, “Why buy weather-worn coal
when we can deliver you coal fresh from the
mines?”
Now, as a matter of fact, the dealer admitted
that he did not know whether coal deteriorated
in stora.ge, other than in breaking down, or not ;
but he knew that coal just from the mines was
l)righter and cleaner than it would be later, and
iie appreciated the fact that this suggestion would
appeal also to the “man in the street.” Aside
from possible objections to the argument on tech¬
nical grounds, featurin.g this idea, certainly
showed ability to make use of a condition which
might have been interpreted as a handicap. Deal¬
ers, who feel that they are laboring at a disad¬
vantage in this, that or some other way should
look at the proposition from some other angle;
maybe they can squeeze a “talking-point” out
of it.
Make Good on Promises.
The homely old virtues are the ones that peo¬
ple insist upon most emphatically.
Punctuality, for instance; it is a safe bet that
Adam started talking about its merits shortly
after Eve developed a tendency to change her fig-
leaf costume too frequently.
Everybody likes to have business engagements
met prom])tly, and even those who are some¬
times late themselves appreciate and sometimes
insist strenuously upon punctuality in others.
The coalman, who promises a load “this after¬
noon,” and .gets it to the customer the next morn¬
ing, has fallen down on the job, and has run
the risk of offending the customer, and perhaps
giving inconvenience. The task of getting it
out the afternoon it was asked for may have
been beyond human powers, and simply impos¬
sible; but if this was the case, the prospect
should have been foreseen, and the delivery prom¬
ised with sufficient qualification to furnish a rea¬
sonable alibi for the dealer in case of complaint.
Why Motor Trucks?
A coal dealer in an eastern city, who uses
motor trucks almost exclusively for delivery pur¬
poses, recently told his customers frankly why he
has substituted mechanical for animal power in
this department of his business.
“We want you to know,” he said, “why we use
motor trucks.
“It is partly your affair, and you ought to be
interested.
“With horse-drawn wagons a limited number of
deliveries a day is possible; the severe winter
weather still further reduces this number; the
horse shoes and steel tires of the wagons cut
up the driveways ; and all these things together
interfere with our ideals of service.
“Then there’s the humanitarian side of it;
think of the poor, half-frozen horses plodding
and slipping alon,g through the winter storms.
“With motor trucks, it is possible to make
twice as many deliveries at a less cost, even in
the worst weather, and our service is thus much
more dependable.
“Many of our customers request us specially to
deliver their coal Iiy truck.”
An interesting point brought out in the above,
and one that would not occur, probably, to the
man on the outside, is that the substitution of
rubber tires for steel tires and horseshoes saves
the driveways of customers; and the sort of cus¬
tomers who have driveways are the very people
who would kick at their mutilation and appre¬
ciate the change when trucks were substituted.
Knowing As Much As the Boss.
A certain business concern, not in the coal
business, recently described itself as a place
“where everybody knows as much as his boss.”
This is tantamount to saying that everybody
has the ability to become a boss if the occasion
should demand. Or, as Napoleon put it, every
soldier of France carries a baton in his knap¬
sack !
One of the tendencies of coal dealers, some¬
times, is to try to keep subordinates subordinate.
Sometimes a dealer is so energetic and ambitious
that he wants to do it all himself, permitting
his hirelings to take care of the purely routine,
mechanical end of the work, and playing the part
of bystanders when there is anything to be done
retiuiring initiative, judgment and other good
qualities.
Now, these qualities as a rule must be de-
velo!)ed by cultivation, just as one’s biceps grow
as the result of exercise. The employe, who
never gets a chance to decide a thing for himself,
and who is always required to get instructions
liefore doing a thing, is not one who can be de¬
scribed as “knowing as much as the boss” ; in
other words, he couldn’t possilily substitute for
the boss if the latter fell down and broke a leg
or happened to be laid up for si.x weeks with
typhoid or pneumonia.
A baseball team is declared by those who ought
to know to be no stronger than its substitutes.
^\'hen Connie Mack broke up his famous infield,
he had no Baker, Barry or Collins in reserve
to take the places of those sons of Swat; and
hence the Athletics last season dropped down
to the lowest notch, and stayed there as long as
the schedule would let them.
How would you like for your coal l)usiness to
Ijecome a tail-ender in the Business League just
because you were prevented from being at the
helm for a few weeks or a few months? Have
you got able substitutes ? Are you giving your
men a chance to grow — mentally — and to in¬
crease their capacity as to judgment and discre¬
tion?
The “News” Element Again.
Recently it was suggested in this department
that coal dealers make greater use of news and
market developments to induce immediate buying.
Since that appeared the writer has run across the
following announcement, which is quite timely,
and is a model for those who may be looking for
“copy” of that sort:
“To our customers:
“The coal situation at this time is far from nor¬
mal, and since you are directly concerned, we
deem it our duty to give you the facts.
“Miners going to Eim^ne to fiphf and others
seeking the high wages paid munition workers
have brought about a scarcity of coal producers.
“During the past few months the decrease in
anthracite shipments compared with the corre¬
sponding period of last year has run into the
millions of ton«.
“Railroad equipment is in bad repair ; and rail¬
road facilities will soon be overtaxed by mov¬
ing the enormous crops that are already late,
and by movine the greatly increased mill and
foundry outputs.
“No coal dealer knows whether he can get
enough coal next winter to supply his custo¬
mers ; and no dealer has more than a fraction of
the necessary storage space for buying coal now
and holding it — not even we.
“We therefore advise our customers to lay in
their coal at the earliest possible moment. Fu¬
ture prices cannot be predicted with certainty —
but every indication points to an increase.
“We will take care of all orders with greatest
possible promptness.”
The coal dealer who knows the editors of his
local papers as he should make it a point to know
them can often arrange, by diplomatically re¬
ferring to the facts, to have important news items
about the situation printed. The news is worth
running, and is valuable information for the pub¬
lic, and at the same time is a legitimate boost for
the coal dealer.
Life of an Anthracite Plant.
• A plant built of wood should be charged off
or depreciated at the rate of about 4 per cent a
year and one built of steel or other fireproof ma¬
terial at the rate of about 3 per cent a year.
At the end of twenty-five years the wooden
structure may be decayed and falling down ; the
building may be too low to accommodate the
larger wagons and trucks ; the system of hand-
lin.g the coal may be so out of date that the
plant can no longer be used ; or which is often
the case particularly in retail plants, the growth
and changes in the city are such that the busi¬
ness has left the particular location. Whatever
the cause, the result is the same, the plant can
no longer be operated profitably and must be
replaced by a new one or the business handled
from a different location.
With twenty-five years as the life of a wooden
plant, one constructed of steel or other fireproof
material appears to have a life of about 33 yea^s.
In the case of the fireproof plant the end of its
usefulness is generally on account of the entire
equipment being out of date or the business leav¬
ing the locality rather than from the material of
which it is constructed being worn out or rusted
out.
The above conclusions are based not on theory,
but on observation and inspection of a large
number of coal plants throughout the country.
There are, of course, many exceptions to
this age limit where plants have been kept in
operation for a number of years beyond their
natural life, and others were what was thou.ght
to be an up-to-date outfit when built, has been
condemned and entirely replaced in 13 to 15
years. It will be found, however, that 4 per cent
and 3 per cent annual depreciation for wood and
fireproof construction, respectively, represents
very closely the actual life of anthracite coal
plants.
370
THE BLACK DIAMOND
[November 6
Spirit of Safety First.
Iwcry now and then you see in the daily press
a brief news item which reads, as a rule, some¬
thing: like this; "About a week ago John Jones
stepped on a nail. Two days later infection set
in. lie died early this morning of blood poison¬
ing.”
You, the man on the job, you who may liappen
to read this article, can prevent a number of
j)ainful accidents, which only too often result in
serious if not fatal consequences, if you would
only stop for a moment when the occasion pre¬
sents itself and do the same thing Jim I-Iod.ge,
an employe at the Boston & Montana Reduction
Works, did.
A lot of boards that went into the makeup of
concrete forms were piled up in the yard. One
of the boards, with a number of nails all project¬
ing upward, slipped off the pile and fell along¬
side of, a passage way that is used quite ex¬
tensively during construction work.
We happened to come alon.g, saw the plank
with the ugly and dangerous looking nails, and
began to w'onder what success we had attained
in educating the man on the job to do a little
looking out for himself and the "other fellow.”
It occurred to us that the man who would stop
and turn over that plank is a man worth know’-
ing; he is a man everybody in the employ of the
mining company ought to be acquainted with. So
we rigged up a camera, installed it in the chief
clerk’s office, and there we were waiting for the
man.
Sure enough, along comes Jim. He has his
eye fixed on the board. He comes alondside of it,
stops, stoops, turns the plank over and plods on
to his work.
The sense of duty which prompted Jim Hodge
to stop on his way to work and turn over the
plank with the projecting nails is nothing else
Init the spirit of Safety First.
J. L. Price.
Accidents vs. Profits.
In my thirty-two years of experience in and
around coal mines, it has always been clear to
me that the system of mana.gement was what in¬
creased safety, and also gave a greater output to
the mine. I have visited some mines where they
do not spare time or money in making the mines
safe, and I find that these people have a greater
tonnage and less accidents to their workmen than
those operations do where they do not keep their
mines up to the requirements, and dra.g along
just any way to get a car of coal, and never spend
a dollar to fix up roads, electric lines or any
other part of their equipment, but permit the
mine to get into a dangerous condition. These
companies, when running under these conditions,
think they are cutting down expenses and get¬
ting cheap coal, but I find that at the end of the
year, when it comes time for the annual report,
the people who keep their plants in good condition,
and are ready to do anything reasonable that the
mine inspector recommends for safety to the
employes, have the lowest cost and the fewest
accidents.
A West Virgini.-v Miner.
Using Mining Machines.
Fditor, The Black Diamond:
In view of the note in The Black Diamond
of recent date regarding the introduction of min¬
ing machines into the anthracite region, it may
be interesting to recall some of the early tests
made with these machines in the anthracite mines,
in the summer of 1901 machines were tried in
the Marcy seam at the Mount Lookout Colliery,
and certain data were then obtained by J. B.
'I'liorne, operating the colliery. The coal was
about four feet in thickness and there was an
upper bench one foot thick, directly under which
was one foot of bone underlaid by a bottom
bench of two feet of coal. Two types of Jeffrey
machines were tried, one compressed air, machine
16-D pattern undercutting to a depth of five feet
and a width of forty-four inches. Experiments
were also made with a 17- A electric machine
with the same size undercut. The electric ma¬
chine .gave a large amount of dust and' was dis¬
carded and while the air machine probably made
as much dust the exhaust air cleared out the
dust and made it possilde for the men to work.
Another element was the high voltage used at
the colliery (500 volts) and although for the rea¬
son given the electric machine was discarded in
these early experiments it really gave better cut¬
ting.
The experiments made at that time showed
that the cars from the machine mining contained
on an average 2,803 pounds of coal and 158
pounds of culm as against 2,953 pounds of coal
and fifty-two pounds of culm. By the methods
of mining commonly used the cuttings across the
face amounted to 2,262 pounds, consisting of 179
pounds of stove and larger size, 212 pounds of
chestnut, 289 pounds of pea, 353 pounds of buck¬
wheat No. 1, 417 pounds of buckwheat No. 2,
and 812 pounds of culm. This work was done
with a five-tooth chain. Later with a three-
tooth chain better results were obtained, as more
coarse coal was gotten.
At the time these experiments were made there
was much labor agitation in the region and it
was difficult to get laborers to load after the ma¬
chines, hence no extended effort was made to
introduce the machines.
Machine.
Tracy First-Aid Society
The Lochray mine of the Anaconda Copper
Mining Company’s coal department is situated at
Tracy, Mont., and is the only mine operating at
that place'. The Tracy First-Aid Society was
formed for the purpose of taking care of the
safety first and first-aid work at the mine and
it has a membership of about thirty miners,
who reside at Tracy. ~
Meetings are held twice a month and are partly
business and partly social in character. Mem¬
bers are elected by secret ballot and a two-thirds
vote is necessary for election. Candidates who
have been successful are notified of their elec¬
tion by the following note, which outlines the
purposes of the society :
“You have been accepted as a candidate for
admission into this society.
"Our object is not only to help our fellow
workers in time of trouble and accident, but also
to prevent injury to, or disease of, our fellow
beings and ourselves in every possible way and
by all possible means.
“Those of us who work in and around mines
are exposed to a certain element of danger at all
times. If we do not take unnecessary risks the
danger is slight. If we do take risks the danger
increases in proportion to the chances we are
taking, and accident is liable to overtake us. We
are, therefore, united in making our watchword
"safety first.” We are resolved to take every
care in our daily work to prevent misfortune to
our fellow men and to ourselves. For e.xample,
by examination of any place that is liable to be
in a dangerous condition before beginning work
there, we can prevent suffering, or even death.
By warning our brother, who is perhaps unaware
of danger, or who may he foolishly taking a
chance, we may be the means of averting catas¬
trophe.
“The second object we have in view is the
prevention of disease by doing what lies in our
power to improve the hygienic or sanitary con¬
ditions in our community.
"We are further resolved to render first aid
to any one who may he injured at any time or
idace, and to study and promote interest in the
humane handling of the injured and sick.”
Durin.g meetings that have been held in the
past the matters that have been discussed have
been: The proper use of fuse and squibs. The
proper methods of lighting shots and the adop¬
tion of a regulation forbidding miners from go-
in.g back immediately after a shot is fired to see
the effect of the shot. Many men have been
caught by delayed firing on account of this prac¬
tise. Letters from Mr. Sanderson, State Mine
Inspector, giving accounts of accidents that have
happened in other mines and suggestions on
methods of preventin.g similar accidents, are read
and discussed.
In accordance with the recommendations of
the society, the company has had red lights
placed on all haulage tracks at crossings used
by the men, and has had automatic cut-outs
placed on the trolley wire circuit at all partings
and crossings used by them.
The future will, it is hoped, see the construc¬
tion of a hall that will provide a meeting place
for the society and serve as a social center for
the community.
Mining Machines in Anthracite Region.
A large number of coal cutting machines are
being installed in the anthracite region, espe¬
cially near Scranton.
Mining men have always been skeptical as to
the practicability of these machines in hard coal,
claiming that they could not stand the rough
usage required by reason of the nature of the
coal. But within the three years they have been
in use here, they have passed the experimental
stage and within a few years they will be used
extensively.
Aside from the great saving in the cost of
mining, they very materially reduce the accidents
caused by blasting, for the reason that it does
not require as much powder to blast coal after it
has been undermined. In addition to this, since
the charges are lighter, the blasts do not shat¬
ter the roof as in the case of hand mining where
heavy charges are necessary, consequently acci¬
dents by falls of roof are reduced.
YOURS FOR SAFETY.
Posting Report of Accidents.
Practically all of the states in which coal is
nnned require that a report of each accident,
whether minor or serious, be made to some state
official, either the head of the state department
of mines or the state industrial commission.
The writer has frequently wondered, and has
asked many superintendents, whether the posting
of a copy of this report, giving all the details of
the accident, in a conspicuous place about the
mine, might not have the effect of reducing the
number of accidents. It would probably work in
two ways; First, a man who sees just what
conditions caused an accident to his fellow-work¬
ers will probably endeavor to avoid a repetition
of such conditions in his own working place; and,
second, the idea of "keep your name off the
board” might lead a man to take more care. No
man wants to see a report of an accident, which
may have happened entirely through his own
negligence or carelessness, posted in a place
where all his fellows can see it, and know from
the statements that he alone was to blame for
his injuries.
No matter whether the result is obtained
through a real desire to make and keep things
safe, or because of a fear of ridicule or censure
from a man’s fellow-workers, if such a plan
brings about greater safety in a mine it seems
that it would be well' worth the small sum re¬
quired for the installation and upkeep of the
bulletin board. L. E. C.
Louisville & Nashville Rates.
Chattanooga, Tenn.. November 4. — The
Louisville & Nashville Railroad, in issuing two
new coal tariffs, one quoting the increased $1.40
rate on coal for land delivery from Alabama mines
in New Orleans, and one quoting the old rate of
$L25 on bunker coal, will test the opinion of the
Interstate Commerce Commission expressed in
the decision on the coal rate case that the rail¬
roads might not concern themselves as to the
use to be made of coal shipped to New Orleans
by making two separate rates, one for land de¬
livery and one for bunker coai.
Tariffs have been issued by the other railroads
interested in the case, including the Southern,
Alabama Great Southern and h'risco lines, mak¬
ing the increase of fifteen cents a ton on land
delivery.
371
No. 19]
Columbus, Ohio, November 4. — {Special Cor¬
respondence.) — An important development in the
Ohio rate case came last week, when it was an¬
nounced by the commission that the pleading tiled
by the Pittsburgh Vein Operators’ Association
against the several railroads serving that held
would be made a part of the general hearing
now in progress. This gives that association the
same status as the Sunday Creek Company, which
intervened in the action of the Ohio United Mine
Workers against all coal-carrying roads of the
state.
By such ruling any readjustment of rates af¬
fecting the Hocking and eastern Ohio helds, as
well as others that may intervene, will be made
at the same time. The way is also thus opened
up for a hearing that may go on for many weeks.
Thus the Sunday Creek Company has won a point
by attracting to its rate light other influential
coal interests.
The commission’s attitude in the matter was
disclosed near the hour of adjournment. Mr.
Boyle had stated that with the redirect examina¬
tion of Mr. Hopkins, rate e-xpert, on Wednesday
morning, the Sunday Creek Company would close
its case against the Hocking Valley railway. It
was ready to hear the evidence of the defense
or to proceed with its separate case against the
Toledo & Ohio Central, which had been made a
party defendant when the intervention suit was
filed.
Solicitor Wilson replied that the Hocking Val¬
ley did not desire to offer its defense until the
T. & O. C. exhibits were in, as some of the sta¬
tistics to be submitted applied to both lines. W.
K. King, attorney, a Toledo & Ohio Central repre¬
sentative who had been present during the hear¬
ing, asked on behalf of C. T. Lewis of Toledo,
counsel-general for the road, that longer time be
given to check up on advance copies of the ex¬
hibits that were to be filed, stating that these
copies had been furnished by the rate experts for
the plaintiffs only on the preceding Tuesday,
h'urther, Frank Lewis, son of the solicitor, who
was to conduct the defense, was at Atlantic City
in attendance upon a sick wife.
The chairman of the commission then asked if
witnesses in the pleadings of other parties to
the hearing were in readiness, so that there might
be no delay m the proceedings, and announced
that the Pittsburgh Vein case would be consid¬
ered as part of the present hearing. No counsel
for these plaintiffs was present. The commis¬
sion stated that it had postponed other important
matters to give this hearing right of way, and
was anxious to push it through as rapidly as pos-
Editor The Black Diamond;
Replying to your favor of September 27, in
which you request a brief statement telling how
we have secured our large output, etc., permit
me to say that I hesitate to make such a state¬
ment, for the reason that it looks like a fellow
tooting his own horn, but I make the effort in
response to your argument that it might be of
interest to other busy men and for the present
adopt the motto of an old-time miner friend of
mine, which was, “He that tooteth not his own
horn, the same shall not be tooted.’’
I took charge of the Superior mines November
1, 1910, and the equipment of the mines is essen¬
tially the same now as it was at that time. The
results have been secured by “closer supervision,”
by finding the lost motion, and then removing
the causes. We have not found them all and
have not yet removed all that have been found,
but we are still at it.
Our hoisting equipment is a 24x36 inch Litch¬
field engine. The cage is of the Oleson self¬
dumping type. We found it necessary to speed
up our hoisting, put on a con drum, take off the
disc throttle and put on a quick-acting throttle.
These changes gave the engine a chance to give
quicker service. The hourly hoist is now report¬
ed to both top and bottom men, and the hoisting
engineer and the compressor man or stationary
engineer change jobs at the end of each hour.
Automatic counting machines are now attached
to the throttle.
The next place to receive our attention was the
bottom of the mine. The caging was not at all
satisfactory, it not being possible to depend on a
steady hoist because of cars being in the sump,
etc. This situation was not relieved until we
tore up all of the tracks, regraded the bottom
and installed the Mining Safety Device caging ma-
TIIE BLACK DIAMOND.
sible. Decision in regard to a postponement was
taken under advisement until Wednesday morn¬
ing.
Mr. Hillman, chief rate expert, was on the
stand nearly all of Tuesday, on redirect and re¬
cross-examination. Questioned by Mr. Boyle, he
stated that he had been employed in cases simi¬
lar to the one now in progress, by twelve state
utilities commissions ; that only five states in
the Union, to his knowledge, had their own rate
exiierts ; and in view of the fact that all rail¬
roads had rate experts among their regular em¬
ployes, the professional rate expert was neces¬
sary in bringing out the facts on behalf of plaint¬
iffs before public commissions not provided with
such. It was disclosed that the total salaries
and expenses of the witness and the men of his
force who had examined the Hocking Valley rec¬
ords at the instance of the Ohio commission was
about $100 a day.
William W. Daniel of Columbus testified that
his railroad experience covered a period of
twenty-seven years, mostly in the traffic depart¬
ment. For ten years he was freight agent of
the old Columbus, Shawnee & Hocking road, and
his last position had been with the Baltimore &
Ohio as coal and coke agent. Later he had
been in the coal business, from which he was now
retired. Part of his time was being given to rate
expert work. In such capacity he had helped pre¬
pare statistics submitted to the Ohio legislature
last winter, in the unsuccessful effort then made
to secure the passage of a law regulating intra¬
state coal traffic. He had been retained by the
Sunday Creek Company in the present case.
Several exhibits compiled by Mr. Daniel were
offered as evidence. Their object was to get be¬
fore the commission the freight rate on coal from
various fields in West Virginia and Kentucky
turned over to the Hocking Valley and delivered
by it at Toledo, and to show the proportionate
rate on the Nelsonville-Toledo haul, as paid by
Ohio coals. West Virginia and Kentucky coal
bearing a $1.25 per ton rate to Toledo would, he
claimed, on an equal ton-mile basis, make the rate
from Nelsonville to Toledo on Ohio coal sixty-
three cents. From the Pocahontas field, with a
$1.45 rate, the same method of calculation would
give Ohio coal a fifty-two-cent rate, and Thacker
coal, which has a Toledo rate of $1.25, enjoys
the Nelsonville-Toledo haul, based on ton miles
from original point of consignment, of sixty-one
cents. It was contended that Ohio coal should
have the benefit of these same proportionate fig¬
ures, instead of being compelled to pay eighty-five
cents per ton on the haul from Nelsonville to
Toledo.
chine. A car release was also put in to allow
the empty car to run off of the cage.
A "leak” was then found on top in the mov¬
ing of the railroad cars. In warm weather the
cars would run too easily and in cold weather
they probably wouldn’t run at all. This was
cured by putting in F'airmont car retarders and
electric car pullers of our own manufacture.
Our energies were then directed to getting the
coal to the bottom and found that the haulage
was at fault, there being too many cars off the
track, etc. The main line haulage roads were
brushed, graded and straightened, and in order
that the motormen should know that they were
secure in going at the best possible speed, arc
headlights were placed on the motors. The stand¬
ard size of haulage motors was raised from
twelve-ton to fifteen-ton. We are installing roll¬
er-bearing cars as fast as possible without throw¬
ing away any of our old usable equipment.
The management of each mine is in the hands
of a mine manager with four assistants, who arc
known as district managers, each mine being di¬
vided into four sections and every working place
is visited every day by the foreman in charge of
that section. A mining engineer is also a mem¬
ber of each organization. The coal is mined
by both air and electric machines in what is
known as the No. 6 seam; the air machines are
being discarded, however, in favor of the elec¬
tric. The haulage is electric, the gathering being
done by both mules and motors.
The record for one day of eight hours hoist
for each mine is as follow's :
.Mine No. 1 . 4,605 tons
Mine No. a . 5,133 tons
Mine No. 3 . 5,195 tons
.\nd the record for the three mines in one
day of eight hours hoist is 14,208 tons. The above
records were made in the past year, and we ex¬
pect to break all of them within the present year.
The following statement shows the tonnage re¬
sults for the fiscal years ending June 20, 1911
to 1915;
Daily
Days
Average.
W orked.
Pet."
No. 1 tonnage .
_ 072,314
2,929
22914
9
Xo. 2 tonnage. . . •
_ 721,921
3,267
221
3
No. 3 tonnage ....
. . . . 793, ()2()
3,411
232
S
Total .
. . . .2,187,261
r~
Daily
Days
Average.
\\ orked.
Pel.”
No. 1 tonnage ....
.... 673,7 17
2,999
224y^
2
No. 2 tonnage. . . .'
. ... 7yi,.S36
3,471
328/8
f>
No. 3 tonnage. ...
_ 838,022
3,629
230%
9
Total .
. . . .2,303,575
t
Daily
Days
Average.
Worked.
Pet.*
No. 1 tonnage. . . .
_ 681,852
3,215
212'A
7
No. 2 tonnage ....
3,835
215%
11
No. 3 tonnage. . . .
_ 837,798
3,896
215.%
8
Total .
_ 2,347,938
Daily
Days
Average.
Worked.
Pet.*
No. I tonnage. . . .
_ 754,992
3,465
217%
8
No. 2 tonnage. . . .
_ 887,919
3,944
225%
3
No. 3 tonnage. . ■ .
. . . . 890,986
3,960
224
2
Total .
_ 2,533,897
Daily
Days
Average.
Worked.
PcL*
No. 1 tonnage. . • •
3,882
232%
n
No. 2 tonnage. . . .
. . . . 869,319
4,198
207.^
6
No. 3 tonnage. . . .
_ 763,318
4,091
186^5
3
*I'ei cent increase laily production over previous year.
While I realize that something has been ac¬
complished in the way of tonnage and also re¬
duced costs, yet I have impressed on my organi¬
zation that the most important thing is ”niini-
mum injuries” before “maximum tonnage.” The
motto of our official family is “Safety, Efficiency
and Economy.” John P. Ref.se,
General Manager of the Superior Coal Com¬
pany, Gillespie, Ill.
Rhode Island Coal.
The presence of coal in Rhode Island was
known as early as 1760, but none of the attempts
made to utilize it have met with success. The
coal beds of the state are unusually difficult to
mine, and the attempt to burn the coal or to
treat it as other coals have been treated has
been unsuccessful.
To understand why this should be so, it is
necessary to have a general idea of the geology
of the region. The coal beds and associated
rocks of this area, according to a report by
George H. Ashley just issued by the United States
Geological Survey as Bulletin 615, have been sub¬
jected to intense horizontal pressure that has
not only affected the internal structure of the
coal but has compressed the beds and other rocks
into great folds. Th^ coal, which is relatively
soft, has yielded more than the surrounding rocks,
so that the beds have lost their original regularity
and now occur in pockets, irregular in size and
shape, separated by more or less extensive areas
of thin coal or areas from which the coal has
l)een entirely squeezed out. The varying inten¬
sity of the pressure from place to place has also
resulted in considerable difference in the quality
of the coal, which ranges from anthracite to
graphite, containing moderately high ash to very
high ash and usually showing a high percentage
of moisture when first mined.
The best coal found in the Rhode Island field
approaches Pennsylvania anthracite in color, frac¬
ture, and luster ; the poorest coal is full of dis¬
tinctly visible quartz veins of considerable thick¬
ness and e.xtent. Owing to its high ash and high
moisture content Rhode Island coal does not have
the heat-giving capacity of the average bitumi¬
nous coals. It is reported to ignite very slowly,
but when once ignited it burns very rapidly and
gives an intense heat; it thus burns itself out
quickly and requires more attention in firing than
other coals.
At the present time the best outlook for Rhode
Island coal is in the production of electric power
at the mines, either in steam engines or by means
of specially devised producer-gas or water-gas
plants. It appears, however, that this can not be
done with financial success until it can be shown
that Rhode Island coal can be mined and delivered
at the furnace for less than one-half the whole¬
sale price of competing coals in Providence and
Boston.
Hocking Valley Rate Hearing.
Hoisting Record of Superior Coal Company.
372
THE BEA( K DIAMOND
[November 6
A Resume of the Ohio Rate Fight.
Columbus, Ohio, November 3. — (St'ecial Cor-
rcst’ondencc.) — Interruption in the fight of Ohio
coal producers before the State Utilities Com¬
mission to secure lower intrastate freight rates,
affords opportunity to take note of the progress
made to date in this effort — one which largely af¬
fects the coal interests of West Virginia, Ken¬
tucky and Pennsylvania, as well as those of Ohio.
.4s announced last week, the commission yielded
to the request of the defendant railroads, which
desired further time to prepare their case, and
adjournment was taken on the :2Tth ult. until
November 32.
It will be recalled that last spring the Supreme
Court of Ohio in passing upon a test case that
had been hanging fire for three years, estab¬
lished the constitutional right of the State
Utilities Commission to regulate intrastate rail¬
road rates, h'oreseeing that this decision would
likely precipitate a general coal rate fight through¬
out the state, the railroads of Ohio took the
initiative in a get-together movement of railroad
and coal interests.
After several joint-conferences by prominent
representatives of each, in which the railroads
conceded that there should be some readjustment
of rates to meet changed conditions, the two
interests failed to come to any kind of agree¬
ment. The rock upon which they hopelessly
siilit was that the railroads wanted to take the
matter before the Interstate Commerce Commis¬
sion, while the coal men insisted upon it being
handled by the State Utilities Commission.
Justly or otherwise, Ohio producers, who have
been in bad straits for several years past, attri¬
buted the bulk of their troubles to alleged dis¬
crimination against them by the railroads on
the ton-mile rate, as compared with the rate
given out-of-state coals, more particularly those
of West Virginia.
The ne.xt move in the Ohio situation was the
filing of a suit before the Utilities Commission
by the Ohio United Mine Workers union. All
railroads of the state were made parties-defend-
ant. The charge of unfairness toward Ohio coal
was urged, and the commission was asked to
investigate the evil and apply the remedy. As
was natural, the Hocking Valley railway was
chosen by the plaintiffs as the one upon which
test should be made. This is the chief artery
through which West Virginia coal reaches the
lake docks. Armitage, a station near Nelson-
ville, is the point at which the Hocking Valley
receives this tonnage from the Kanawha & Mich¬
igan. The vulnerable point of attack is the sup¬
posed fact that the Hocking Valley hauls this
coal from Armitage to Toledo, and has for years,
at an estimated rate of about 3'.) cents, whereas
it charges 85 cents for Ohio coal originating at
Nelsonville, and up until recently has been charg¬
ing $1 per ton.
.‘\n important point won by the plaintiffs was
overriding the attitude of the Hocking Valley
in refusing to allow its records to be examined.
The commission ruled that these records were
necessary evidence. The next development was
intervention in the case as plaintiff by the Sunday
Creek Coal Company, revealing the fact that the
operators were back of the miners’ action. Their
pleading was filed soon after the hearing began
in August. Plaintiffs and defendants failing to
agree on the plan of taking data from the rec¬
ords, the commission appointed a board of exam¬
iners. The plaintiffs would seem to have scored
again when the Corps of rate experts originally
employed for the case by the Sunday Creek Com¬
pany were named as the examiners, with the ad¬
dition of an employe of the commission. All
the time asked for by the plaintiffs, a period of
about six weeks, was allowed them in making the
examination, the commission adjourning until
this work could be completed.
The six days during which the hearing was
in progress again, just previous to the late post-
lionement at the instance of the railroads, were
consumed for the most part in taking the testi¬
mony of the rate experts, placed upon the stand
to explain the statistical exhibits which had been
jdaced in evidence. The sum of all this was the
effort to show the exact cost of transporting a
ton of coal from Nelsonville to Toledo, and to
jioint out to the commission what would be the
actual rate, including profit, on this haul if the
total coal revenue, as shown by the railroad’s
records, was etiualized so as to apply impartially
to both foreign and Ohio coal.
It was the contention of the experts that this
equalization would give Ohio coal a rate from
Nelsonville to Toledo, including assembling and
terminal charges, of a fraction less than 70 cents.
The goal aimed at by the Hocking operators
is the securing of a 75 cent rate, which would
mean a differential against the real competing
West Virginia fields of 50 cents per ton. With
this advantage allowed on the Toledo haul, it
would naturally follow, in the opinion of Ohio
operators generally, that the commission could
do no less than grant a proportionate differential
on all roads to all points throughout the state.
Thus the defense which the Hocking Valley
railway may be able to put up in the case is of as
much importance to other coal-carrying lines as
a favorable decision for the Sunday Creek Com¬
pany would be to other coal producers. The
plaintiffs have practically completed their testi¬
mony. Much interest centers in the tactics of
the defendants. The railroads are robbed of
what has heretofore been their chief reliance —
the claim that the commission lacked jurisdic¬
tion. Effort will no doubt be made, as fore¬
shadowed in the cross-e.xamination, to break the
force of the experts’ testimony, on the ground
that the analysis and assignment of the various
elements entering into the exhibits are theoreti¬
cal, rather than practical. The strongest card
Philadelphia, November 4. — {Special Corre¬
spondence.) — “Within ninety days from the entry
of this degree or in case an appeal be taken there¬
from to the Supreme Court of the United States
and duly prosecuted, then within ninety days after
the filing in this court of the mandate of the
supreme court affirming the decree — the defend¬
ants shall submit to this court a plan for the dis¬
posal by the Central Railroad Company, of all
the stock, bonds or other securities of the Lehigh
& Wilkes-Barre Coal Company, now owned or
in any manner controlled by it ; the plan to be
such as will effectually dissolve the unlawful
combination and create a situation in harmony
with law.
“If the defendants shall fail to present a plan
within the period stated, or if the plan sub¬
mitted shall be rejected, this court will take such
further steps by receivership or otherwise as
may then seem necessary, to dispose of the
stock.”
Foregoing is the order contained in the decree
of Judges McPherson, Buffington and Hunt, sit¬
ting as a circuit court of appeals in this city last
week. Their judgment was the latest chapter in
the suit tof the government to dissolve what its
attorneys have called “the anthracite coal trust.”
Last July when the judges submitted their
review of the case they held that the holding
of Central Railway of New Jersey stock — which
in turn held the stock of the Lehigh & Wilkes-
Barre Coal Company — and the holding of the
Philadelphia & Reading Coal & Iron Company
stock, by the Reading Company was in restraint
of trade.
In October attorneys for the comiianies con¬
cerned offered three plans of reorganization to
the judges for their consideration. Attorneys
for the Central Railway and the Lehigh &
Wilkes-Barre Companies protested against the
divorcement between these. This was one of the
plans submitted.
In handing down their decree the judges de¬
clare that the union of the Philadelphia & Read¬
ing Coal & Iron Company and the Lehigh &
Wilkes-Barre Coal Company, through the instru¬
mentality of the Reading Company, a holding
corporation which owns the entire capital stock
of the Philadelphia &- Reading Coal & Iron
Company and a majority of the capital stock of
the Central Railway of New Jersey Company,
the last named company owning the majority of
the capital stock of the Lehigh & Wilkes-Barre
Coal Company, is a combination in restraint of
trade and violates the anti-trust act of 18<.)().
Pending the disposal of such securities, the
Central Railway, the Reading Company and all
corporations controlled by them are enjoined from
voting or attempting to vote on any stock of
the Lehigh & Wilkes-Barre Coal Company. Even
railroad arrangements and leases are directed
by the decrees of the judges vvh'o state:
“All clauses, stipulations or covenants in leases
of coal lands made by the Reading Coal & Iron
Company or by the Lehigh & Wilkes-Barre Coal
Company or by any subsidiary company of either
that require the 'lessees to ship coal over any
particular railroad or over such route as may be
designated by any railroad coinjiany, are hereby
of the defense, though, is expected to lie in the
alleged fact that the experts did not attempt to
take into account the matter of railroad financing,
which has a vital bearing on the whole proposi¬
tion. .Ks an illustration, it is believed that the
railroad will seek to make it appear that the
revenue which it realizes from West Virginia
coal, taken at a necessarily low rate in order to
meet competition, is an essential factor in sus¬
taining the road’s financial burdens involved in
the primary object of efficiently serving Ohio coal
producers.
The railroad hopes to make a strong case be¬
fore the commission, to the *end that a rate-
reduction, if any, may be small. It is believed
by some coal men that a slight reduction would
be accepted without further contest, but that
before submitting to a se\-enty-five cent rate the
railroad would go into the courts and attempt
to show that the commission’s ruling was con¬
fiscatory.
Intervention in the case by the Pittsburgh Vein
Operators .Association of Ohio, which controls
most of the mines in Jefferson and Belmont
counties, and their request that the commission
require the railroads entering that field to file
information on their costs and profits, gives the
present hearing a much greater significance than
appeared on the surface at the outset.
declared to \-iolate the anti-trust act of 1890, and,
therefore, to be void, and the coal companies
and the railroad companies that are parties to
this decree, their officers, directors, agents and
employes are hereby enjoined from enforcing or
attempting to enforce or threatening to enforce
such clauses, stipulations or covenants.”
It is declared that the government is entitled
to recover from the Reading Company so much
of the farable costs in the bonds and securities.
This court dismissed the charge against the
Lehigh and Susquehanna railroads and the Le¬
high Coal & Navigation Company and the Cen¬
tral Railroad in which was concerned a lease
concerning coal traffic. Suits against the Lehigh
Coal & Navigation Company and the Lehigh Coal
and New England Railway were also dismissed.
A Holmes Memorial.
The Colorado State School of Mines has
through its president, William B. Phillips, an¬
nounced that it has created the Joseph Austin
Holmes professorship of safety and efficiency
engineering, and that the board of trustees has
appointed to that professorship, James Cole Rob¬
erts, who heretofore has been connected with
the Bureau of Mines of Denver.
In connection with this movement in the
school, Mr. Phillips makes a suggestion which
must appeal to the coal men as being both prac¬
tical and extremely sensible. He says that such
professorships are the best possible kind of a
memorial to Dr. Holmes who undoubtedly has
done more than any other man living or dead
for the coal mining industry. That is, the school
is prepared to equip this new chair with all of
the best apparatus and appliances so that noth¬
ing will he lacking for adequate instruction. The
school is doing its part to carry on the work
which Dr. Holmes started, namely the work of
promoting safety and of teaching it so that
an endless chain of safety advocates and ef- -
ficiency enthusiasts may be going out into the
coal fields.
He makes another very practical suggestion
which is that, if the committee on the Dr. Holmes
memorial can see fit, it could by making an ap¬
propriation of $50,000, assure scholarships to at
least five persons annually. That is, a sum of
$50,000 invested would yield $2,500 a year. This
would pay for five scholarships at $500 each
in this particular school. Thus through this one
avenue alone, five trained and efficient men would
be going out every year to spread their influence
for the work which Dr. Holmes when in life
did sb much. The suggestion appeals tremen¬
dously because it starts an endless chain of in¬
fluence in a direction where influence is much
needed.
The D. L. & W. coal trestle in Buffalo will
probably be torn down about the middle of the
month, as it is stated that the dredge which is
preparing for the new trestle will reach it about
that time. The plan is to erect a car dump and
probably a boxcar unloader in place of the pres¬
ent wooden trestle and to be ready for work next
year.
A New Chapter of the Anthracite Litigation.
No. 19]
TPIE BLACK DIAMOND
373
Prospects of Coal Strike.
The prospect of a strike in the anthracite
region next April is looming up. The same
forces that lined up in 1902 are sharpening their
knives. The battle this time, if one is to believe
the officials of the United Mine Workers’ Union,
will be for blood. The innocent bystander, the
general public, as usual, will be plentifully spat¬
tered with gore, some of it his own, for the fly¬
ing cutlerv is hard to dodge.
The stake this time is an increase of $20,000,000
a year in wages. Additional demands are that
the next contract be for a term of two years;
that individual agreements and contracts in the
mining of coal be prohibited; that an eight-hour
day be instituted; that a “satisfactory” method
of settling grievances be established; and, last,
l)ut far from the least, that sine qua non in strike
amenities, full and complete recognition of the
union. Here are the same old rocks over which
the Anthracite Coal Commission had to bump its
way, an expensive proceeding almost ephemeral
in its effects. Every miner, every operator, _ every
employer, every householder participated in the
dancing that preceded the sitting of the commis¬
sion and paid dearly for his entertainment.
Will there be another strike next spring? ‘Not
for a day,” says President White of the mine
workers — that is, if all his demands are met.
Mr. White is of a pleasant turn of mind. He
plies a congenial occupation and he likes to make
work for himself. But he is entirely too opti¬
mistic. ■
With due and full notice of what is lixely to
happen, why should we go through the agonies
of another coal strike? Why not anticipate the
effect of the expiration of the present agreement
and have the merits of the budding controversy
passed on in advance of complete development?
Surely there is no dearth of professional investi¬
gators who would be willing to sacrifice their
leisure in return for sure pay from the public
purse and a liberal education in coal mining.
Winter is coming on and soft jobs are still scarce.
A congressional delegation, hand picked from
the agricultural hamlets of the south, and utterly
impartial as regards preconceptions of the issues,
but with the frenetic Mr. Walsh of the Industrial
Relations Commission as counsellor and guide,
might even be induced to assume the job. The
next election is far enough off to have the moans
of the operators forgotten, yet near enough to
preserve the shine on the halos of a new set of
adjusters of the rights of the “downtrodden.
But the matter is too serious to go by de¬
fault. If there ever was an opportunity for ef¬
fective arbitration it is here before our eyes. —
Nezv York Sun.
Indiana First Aid Meet.
Bicknell, Ind., November 4. — {Special Cor¬
respondence.) — The first state meet of the miners
held here Saturday seem to have left a pleasing
taste with the miners and the operators. It was
one of the most enjoyable events held in the
Indiana coal field in recent years. The feeling
between the miners and their employers seemed to
be better than ever before. There was a great
deal of close competition for the prizes offered.
All of the mines in this part of the field were
closed down and more than 3,000 people were
present.
The attendance was even larger than at the
national meeting at Terre Haute a few months
ago under the auspices of the United States Bu¬
reau of Mines. The contests showed that many
of the miners have studied the best methods for
rendering first aid to the injured. The winning
teams were the following :
First Prize— Team No. 21, Oliphant-Wasson Company,
No. 2, Bruceville.
Second— Team No. 16, Knox Coal Company, Bicknell.
Third— Team No. 8, Green Valley Coal Company,
Jasonville. ^ ^ vt
Fourth— Team No. 6, Jackson Hill Coal Company, No.
2, Sullivan. ^ ^ , r-
Fifth — Team No. 15, Indian Creek Coal Company,
Bickneil.
Sixth — Team No. 2, Miami Coal Company, No. 1,
Clinton. . . ^ ^
Seventh — Team No. 3, Miami Coal Company, No. 2,
Clinton. . . -vr /-
Eighth — Team No. 9, Vandalia Mine, No. 15, Cass.
Ninth — Team No. 14, J. Woolley Coal Company, Pax-
Tenth — Team No. 23, American Coal Mining Com¬
pany, No. 2, Bicknell.
Eleventh — Team No. 5, Vandalia Coal Company, No.
82, Bicknell. ^ _
Twelfth— Team No. 24, Tecumseh Coal Mining Com¬
pany, No. 82, Bicknell.
Thirteenth— Team No. 1, J. K. Dering Coal Company,
Clinton.
Fourteenth — Team No. 12, Vandalia Mine No. 0.
T. inton. . .
Fifteenth — Team No. 22, American Coal Mining Com¬
pany, Bicknell.
Sixteenth — Team No. 11, Vandalia Mine No. 11 local,
Dugger.
Seventeenth — Team No. 13, Woolley Coal Company,
Paxton.
Eighteenth — Team No. 19, Knox Coal Company, Bick¬
nell.
Nineteenth — Team No. 7, Calora Coal Company, Jason¬
ville.
Twentieth — Team No. 25, Pow ellcttes, Bicknell.
Twenty-first — Team No. 4, Richirds Lower Vein, No.
1, Terre Kauce.
Twenty-second — Team No. 26, Old Bicknell Mine, Bick¬
nell.
Although tile matter of binding up imaginary
wounds and treating patients for fancied mishaps
may be called prosaic and utterly lacking in senti¬
ment, there was a large attendance of spectators,
other than members of the families of miners and
operators, and the crowd remained until night to
see the finish of the contests. Here is the list of
problems submitted to the teams for demonstra¬
tion :
Driver falls under car, sustaining following injuries:
Compound fracture of right forearm four inches above
wrist, very slight bleeding; severe laceration over right
knee cap; practically no bleeding. Treat.
Fall of slate on entry causes trolley wire to fall on
back of right shoulder of motorman; severe burn, un¬
conscious. Dress and treat for electrical shock. Trans¬
port fifty feet on improvised stretcher.
Fire boss in making his rounds runs into an un¬
expected pocket of gas, which is set off by naked light
he is wearing. Sustains burns of entire body above
waist line. Conscious. Treat.
Trip rider knocked off motor, run over by empty car;
sustains following injuries: Compound fracture of thigh
four inches above left knee, severe hemorrhage, simple
fracture in middle of right leg. Conscious. Treat.
Cager caught between cage and brow timbers. Sus¬
tains following injuries: Severe laceration of right ear,
fracture of sixth, seventh and eighth ribs on right side
of chest. Laceration of abdominal wall just above left
hip. Conscious. Treat.
Physicians from the various mines and repre¬
sentatives of the bureau of mines judged the con¬
tests.
Kentucky Mining Institute.
Ivan P. Tashof, secretary, announces that Lex¬
ington has secured the winter meeting of the
Kentucky Mining Institute. This organization,
with a membership of 350, will convene Friday
and Saturday, December 3rd and 4th. Prominent
mine operators, mine managers, superintendents
and engineers from all parts of the state of Ken¬
tucky are expected to attend.
This is the first time since May, 1914, that
Lexington has had the privilege of entertaining
this organization, Louisville having secured the
December, 1914, meeting, and Pineville the May,
1915, meeting.
The program for this meeting is now in the
process of formation, and will be announced as
soon as it is completed. The Phoenix Hotel of
Lexington will be headquarters.
Mr. Tashof, secretary of the institute, has an¬
nounced the following committees for the meet¬
ing: Committee on papers, J. E. Butler, Stearns,
Ky. ; Ivan P. Tashof, Lexington, Ky. Committee
on entertainment. Professor C. J. Norwood, Ed¬
win L. Quarles, R. D. Quickel, Milton Sanchez,
Ivan P. Tashof.
Taggart Sues Sanitarium.
Norristown, Pa., November 4. — Grantham 1.
Taggart, who is connected with the Taggart Coal
Company at Savannah, Ga., entered suit in the
courts here on Saturday last against the keeper
of a sanitarium. Dr. F. S. Ludlum, asking $50,000
damages. In his bill of particulars Mr. Taggart
alleges that in December, 1913, while broken in
health from business worries he became a pa¬
tient at the place of the doctor at Merion. He
states that beside annoyance he was a victim of
negligence and was phy.sically restrained from
leaving the place.
Boland Gets $45,000.
Scranton, November 4. — By a decision
handed down by the Interstate Commerce Com¬
mission last week W. P. Boland of the Marian
Coal Company declares that he has been granted
reparation to the amount of $45,000 against the
Delaware, Lackawanna & Western Railroad.
This is the result of a long drawn out legal action
that was started in October, 1911, in which a
change was made in the freight rates from
Taylor, Pa., the loading point of the Marian Coal
Company.
U. S. Coal Exports.
Coal and Coke — 1914.
Coal — • Quantity.
Anthracite . tons... 453,30.)
E.xported to — . . ,
Canada . 452,538
Argentina . .
Brazil .
Uruguay .
Other countries . 2,707
Bituminous . tons ... 1,955,170
Exported to —
Italy . . . .
^.anada . ...1,513,090
Panama . 22 007
Mexico . . . 24 J05
Cuba . 79 5;j7
Other West Indies and Bermuda . 60,550
Argentina . . 25,811
Prazil . . 5 4,695
Uruguay . io,920
Other countries . 103 795
Total coal . tons .2 410 -481
Coke . tons... 43,220
Value.
$2,396,365
Quantity.
307,147
Value.
$1,602,614
$2,382,171
14,194
293,318
1,740
2,372
600
9,117
$1,536,316
10,811
9,139
3,333
43,015
$4,661,102
2,000,848
$5,080,157
382,154
$1,129,440
$3,306,321
947,069
1,955,411
58,698
49,423
136,679
108,699
18,507
82,000
217,109
114,299
315.698
184,886
42,347
134,344
82,124
128,823
392,715
172,871
53,002
153,902
32,518
30,956
89,235
497,870
234,268
690,733
$7,057,407
2,307,995
$6,682,771
$ 180,648
83,085
$ 319,536
Coal and coke-
Coal —
Anthracite
Exported to —
Canada .
Argentina .
Brazil .
Uruguay .
Other countries.
Bituminous . tons.
Exported to —
Italy .
Canada .
Panama .
Mexico .
Cuba .
Other West Indies and Bermuda.
Argentina .
Brazil .
Uruguay .
Other countries .
191.5
-Eight Months Ending August-
1914.
.tons. .
Total coal . tons..
Coke
. tons.
The above figures do not include
trade, which aggregated during the month, and
1914, 512,700 tons, valued at $1,725,410; August,
ending August, 1913, 5,079,189 tons, valued
1915, 5,027,027 tons, valued at $16,926,237.
Figures are for six months, January to June, inclusive.
Figures cover period heginning July 1.
Quantity.
2,847,443
Value.
$15,028,774
Quantity.
2,666,969
Value.
$13,940,001
Quantity.
2,304,964
2,800,112
$14,803,765
2,627,945
$1.3,743,564
2,261,722
2,335
2,415
605
47,331
225,009
39,024
196,437
37,887
11,834,511
$30,057,981
9,045,260
$22,209,5185
10,588,583
2,023,945
4,737,655
329,450
216,246
734,536
308,605
662,714
482,971
130,790
961,671
8,652,472
351,850
377,098
868,114
419,406
48,626
200,088
5,163
911,601
$21,045,640
953,267
1,082,884
2,340,264
1,210,131
135,214
636,219
14,992
2,639,364
6,038,936
190,965
215,068
696,111
415,824
138,219
155,225
56,514
1,138,408
$13,234,146
513,630
816,993
1,939,212
1,235,405
409,360
502,708
107,426
3,390,639
14,681,954
$45,086,755
11,712,229
$36,149,586
12,893,547
607,7671
$ 2,260,621
456,661
$ 1,701,017
513,679
1915.
Value.
$11,960,935
14,108
9,518
3.367
170,680
$ 5,
10,
992,011
079,183
903,516
990,121
033,574
953,816
001,934
452,894
383,308
,353,1.56
$ 1,972,728
fuel or bunker coal laden on vessels engaged in the foreign
eight months ending .4ngust, as follows: .August,
1915, 672,990 tons, valued at $2,274,484; eight months
at $16,488,649; 1014, 5,038,576 tons, valued at $16,689,570;
374
[November 6
FUBIiISHED BVE&T SATTTBDAT BT THB
BBACK BIAMOin) COMFAinr.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMONB COUP AITS’ (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
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Saturday, November 6, 1915.
INDEX.
Special Articles.
Page
Ouestion Growing Out of Anthracite Tax Decision.. 365
Fold in Anthracite \'ein Saves Stripping Plan.... 366
Trade Commission Extending Kxtiort Inquiry . 367
Some New Law on Buying and Selling . 367
Plant of the Coal Boulet Company . 368
New Furnace Room Device . 308
Field of the Retail Dealer . 369
Mine Clearing House . 370
Louisville and Nashville Rates . 370
Hocking Valley Rate Hearing . 371
Hoisting Record of Superior Coal Company . 371
Rh )de Island Coal . 371
A Resume of the Ohio Rate Fight . 372
A New Chapter of the Anthracite T-itigation . 372
A Holmes Memorial . 372
Prospects of Coal Strike . 373
Indiana First Aid Meet . 373
Kentucky Mining Institute . 373
Taggart Sues Sanitarium . 373
U. S. Coal Exports . 373
Editorial . 374
News Local to Chicago . 376
Small Activities . 376
Facts Which Determine Our Export Piospects . 377
Market Reports.
General Review and Chicago . 378
Pittsburgh and Birmingham . 379
Cincinnati, Denver and Detroit . 380
Cleveland, Indianapolis and St. Louis . 381
New York . 382
Philadelphia and Buffalo . 383
New England, Baltimore, Duluth and Southwest. . . . 384
Hocking Valley . 15
A One-Sided Proposition.
I'he Illinois coal operators, until this
year, sold their coal for almost anything
they could get for it. They printed a cir¬
cular of prices which, in June, called for
$1.35; in July and part of August for
$1.50; for a part of August $1.65 to $1.75 :
and after the first of September, for $1.75
to $2.25.
Candidly, these circular jirices were
masterpieces of coal fiction. They looked
well on a printed slip, and would have
looked even better on the order book.
But the matter of transferring them
from one to the other was considered one
of the impossibilities. Instead of circular
price, some of the operators were satis¬
fied if they got anything better than
$1.00. There were jilaces, jiarticidarly in
Nebraska, where this coal got u]) to de¬
murrage and was sold week in anil week
out for as low as ninety cents and $1.00
a ton.
'Phis year the operators were con¬
fronted by a new situation. They had
lost tonnage because of the depression in
business. They were facing the i)roposal
that they should continue to lose busi¬
ness and also money on what coal they
shipped by selling it for less than cost of
production. Even the most sturdy coal
company could not endure this drain for
any length of time and in consequence
some remediable measures had to be
THE BLAC K DIAMOND^
taken. So the operators began to adhere
to circular. That is, when the circular
price was $1.35 that was also the selling-
price. Consequently, when the circular
price advanced to $1.50 and subsequently
to $1.75, the retailers had to pay it.
Nowq the retail dealer in Iowa and Ne¬
braska who has been getting coal for
ninety cents and $1.00 a ton says that he
cannot see it at $1.75 a ton. I'fc cannot
even see it at $1.50. I'he reason is clear.
He has been basing his prices to his cus¬
tomers on circular, but buying at the
market. Thus he has pocketed the dif¬
ference between the actual selling price
and the circular price. Me has been mak¬
ing, in a word, the normal profit on coal
plus the sixty to eighty-five cents a ton
that the operator cut under his own cir¬
cular price. Naturally, the retailer hav¬
ing enjoyed such a bonanza, does not
care to have it taken from him.
The retailers are doing a perfectly hu¬
man thing under the circumstances. They
say to the Illinois operators that unless
they return to the the old practice of
cutting coal prices below the cost of pro¬
duction, the yards will no longer handle
Illinois coal but will turn to Colorado
and Wyoming coals. This they can
easily do because the two coals are about
on a freight rate parity in that market.
In this fact they have a tremendous le\-
erage to use against the Illinois opera¬
tors, and they do not hesitate to use it.
It is w’orthy of note that the club is
being used solely to beat the price down
below cost of production.
Perhai)S under the theory that “busi¬
ness is business” such a merciless atti-
titude is justifiable. However, there is
one |4oint which must be taken into con¬
sideration. At ninety cents or $1.00 a
ton. domestic coal from Illinois is selling-
far below actual cost of production. It
costs not less than $1.00 a ton, and often
above $1.05 a ton, to produce tniiie run
coal in Illinois. To get the mine run scll-
iny l>ricc. it is necessary to average the
lump and fine coal prices. The average
price of screenings — these make uj) more
than forty per cent of the production — is
about seventy-five cents a ton. If all the
“prepared sizes” of coal sold at $1.50, the
mine run price would be $1.20. However,
all the prepared sizes do not sell for any¬
thing like that and, under the old rule,
even lump sold for no such attractive
price. P'or example, when lump is $1.50,
the egg and nut are selling for much less.
Clearly, if the retailers insist on getting
their coal for ninety cents or $1.00, they
are insisting that the operators shall sell
the mine run on the average at eighty-
four cents a ton. 'Phis, at best, is a loss
of sixteen cents. It will probal)ly mean
a loss of twenty-one cents a ton or more.
The (piestion, of course, is: “Are the
western retailers going to demand that
the Illinois o])erators shall lose sixteen
cents a ton, or go without their busi¬
ness ?”
To take any such stand is short-sight¬
ed. It is worse; it is one-sided. It says
that the operators shall lose money that
the retailers may make much. It says
that the men who support the retail busi¬
ness by giving them their supply of coal
shall be ruined .systematically that the re¬
tailer may ])rofit for a short time. In the
end, of course, the retailer must go dowm
along with his source of supply and thus
the whole trade wdll be involved in ruin.
The present program is nothing more
than a slow process in trade suicide.
Supplying City Coal Needs.
In these days, with school buildings to
heat, public plants to run, fire depart¬
ments to be kept going, and other de¬
partments to be run, modern cities are
quite heavy buyers of coal, and the city’s
attitude toward the coal man is a trifle
peculiar.
The municipality almost invariably
presents itself to its source of coal sup¬
ply as an eleemosynary institution which
must be given special consideration in the
matter of price. In a word, coal to the
city must be sold cheaper than to any¬
body else. Just why that should be no
one has ever been able to figure out. In
addition, the coal dealer is asked to live
up to the most rigid specifications. In
most cases he is penalized for any loss
of intrinsic value of the coal. In some
places, as in New York and Philadelphia,
he is sometimes penalized three or four
times for the same offense. To offset
this excessive penalty, the coal man gets
no reward at all if he supplies a coal su¬
perior to that specified. Further, the city
demands that he shall put up a sum of
money in cash or an indemnifying bond
that w-ill make sure that the city is going
to get coal or lose no money while buying
elsewhere. All things considered, the city
is rather an exacting customer.
At the same time, every municipality in
America is constantly wondering why no
more coal men bid on city business. The
constant effort of American cities is to
try some device by which the coal men
can be induced to bid against each other
for the city contract and therefore cut the
price still further. City ofificials are con¬
stantly wondering why coal men will not
rise to the public bait.
The things just said explain in part
why coal men are backward, but Phila¬
delphia, today, is presenting another very
definite reason. Now, one coal man has
supplied the city with his coal, accepting
the low price and enduring the trials in¬
cident to rigid specifications. He is prac¬
tically supplying the city its fuel and is
getting back only out of pocket cost, for
which, incidentally, he has to wait some¬
times sixty to ninety days or more. Thus
he actually loses interest on the money
that he has invested.
P)Ut that is not the end of his troubles.
I'oday the politicians are in a fight ambng
themselves in Philadelphia, and this man,
in addition to his monetary loss, has been
stigmatized as practically a robber and
grafter by some politicians, who seem
to have no other way of expressing
themselves than by using such terms.
Philadelphia thus tells, by examjfle,
why the coal man is not keen for city
business. He does not care to do a big-
volume of business at actual cost or less
and, in addition, run the risk of having
his character wrecked by a lot of loose-
tongued politicians.
In a word, the thing that bothers the coal
man is this : He has been a follower of
sharp practice and it has become a habit.
He will not trust anyone and in consequence
no one will trust him. A little reform in
personal conduct would help much.
No. 19]
THE BLACK DIAMOND.
375
Protesting Too Much.
One of the characters in Hamlet is made
to say: “Me thinks she doth protest too
much.” After reading many statements
made by coal retailers concerning their serv¬
ice and after comparing these statements
with the actual performances, we are in¬
clined to believe that the same thing could
be said about the coal trade.
As a practice, many retailers use high-
sounding phrases and big words which they
do not understand and which promise things
that the retailer is incapable of doing.
By way of illustration, one retail dealer
recently bought an auto truck. He at once
sent a lot of circular letters to the people
of his community. With this letter was
sent a picture of the truck. The letter
contained a statement to this efifect : “By
having this truck, we are able to give you
quick service and clean deliveries of coal.”
One-half of that statement was perfectly
true and could be substantiated. He could
make quick deliveries. The other half was
not true and really silly. The truck has
nothing to do with the cleanness of the
“delivery” of coal. It does not make a
particle of difference whether coal is
dumped or carried in out of the body of
a horse-drawn wagon or out of the body
of a conveyance driven by a gasoline engine.
The motive power has nothing whatever
to do with the discharge of coal. There¬
fore, the motor truck could not insure
“clean delivery.” It was the men that were
on the motor truck which governed that
matter. The truck itself was not even a
factor.
It is bad policy to over advertise a service
— to say more about it than the circum¬
stances warrant. It is a worse policy to
advertise a bad service. As an illustration,
one of the metropolitan newspapers had
allowed its writing staff to deteriorate : it
did not have a single virile writer in its
employ. Without correcting this defect, it
made a tremendous appeal to the people
and spent between $75,000 and $100,000 on
a circulation campaign. This brought the
paper to the attention of nearly everyone
only, however, to call attention to the fact
that it contained nothing worth reading.
Therefore the money was spent mainly to
advance the interests of its competitors,
which did have a few writers.
If a retail dealer advertises that he
has something and has nothing of the sort,
the mere fact of his advertisement will not
overcome the evidence of the man’s own
eyes. Instead it will increase the buyer's
desire for what the retailer said he had
and send the man elsewhere to get it. Thus
telling an untruth about one’s service to
gain patronage is really spending money to
drive customers away. Such advertising is
protesting too much.
Removing Ashes.
Burn coal and you will get ashes. There
is no way to avoid it. For every shovelful
of coal put in at the feed door, a certain
amount of ash must come out of the pit.
The coal is put into the basement by the
coal man. Who sees to it that the ashes
are taken away? Who finishes the fuel
job?
In some of the smaller communities, the
village organization has no system of
garbage disposal ; both the garbage and the
ashes are taken away by contract with some
private concern. Under those conditions.
the man who takes the garbage away does
so to get feed for his hogs ; he assesses a
nominal charge for disposing of the ashes.
In some of the larger cities, the garbage is
taken away by the municipality, but the
ashes are left for the householder to dis¬
pose of. In the still larger cities, both the
ashes and garbage are taken away by the
city itself.
In some of the medium-sized cities, there
may be a sideline business for the retailer
in undertaking to haul the ashes away. It
would hardly do to agree to remove them
only from his customers,- because that would
be an inefficient way of doing things and
also it would soon lead to a new device for
cutting prices on coal. The retailer might,
however, employ. a part of his equipment
a good part of the time in gathering up the
ashes from at least one section of the town.
He would find the people willing to pay
fifty cents to a dollar a month to have that
done. The collection, under most condi¬
tions, is a simple matter. The ashes are
put into a receptacle which can be carried
to the wagon and dumped. At a dollar a
month the price for hauling the ashes away
will be anywhere from one-half cent to one
cent a pound or from $10.00 to $20.00 a
ton. All of this is a charge for service and
not, as in the case of coal, the charge for
the commodity itself plus the freight rate
and the selling expense. There is really
more money in hauling away ashes at such,
a price than there is in doing a retail coal
business.
This is merely a suggestion to some few
retailers who may lie so situated that they
can profit by it.
Responsibility for Breakage.
[Contributed.]
Is the operator who has spent a large
amount of money in equipment for the
careful loading of coal and who uses
every precaution that the percentage of
breakage be as small as possible, is he
responsible for breakage in coal? Or is
the dealer to blame?
Everywhere one goes he hears com¬
plaints from the dealers upon the amount
of breakage in coal and the losses accru¬
ing therefrom. Is the dealer as careful
in unloading the coal as the operator is
in loading it? Investigation shows that
the dealer is not.
During that time of year when the
dealer is receiving the most coal labor is
invariably scarce and he is only too glad
to pick up the first man that comes along,
when the very fact that this man is an
idle workman evidences his worth. These
men which the dealer hires are usually
paid by the ton and have no other incen¬
tive than to get the coal out of the car
and into the bin in the least possible time
and regardless of how much breakage
they incur. You dealers tvho are hiring
these men know the tendency on the part
of the workmen to ])ick up the largest
chunks and either break them up and
heave them onto the pile, or into the bin,
causing a fall from six to fifteen feet,
whereas the operator strives to reduce
the fall of coal from the chute into the
car to less than two feet.
It is these workmen, this extra help
and the dealer’s lack of unloading facili¬
ties that cause the breakage in coal and
causes at least a loss of ten cents or more
per ton to the dealer.
As a remedy for this common com¬
plaint, let us suggest that dealers pay
their extra help by the hour, install un¬
loading facilities to reduce the cost and
insure the least amount of breakage to
the coal that they handle.
Don’t Confess a Weakness.
No merchant should ever, even by im¬
plication, confess any weakness. It is
bad enough to have them wdthout adver¬
tising the fact.
There is a curious bit of psychology
which explains why the populace do not
like an apology. First, they think that
the man is whining, and they do not like
a beggar. Second, and principally, they
have been “talked to death” and do not
want the whys and wherefores of any¬
thing. It is impossible to make an apology
without talking a great deal. That puts
the apologizer out of harmony with his
audience.
Applying this to coal, the people are
not interested much in details, anyway.
What they want is the coal. Further
than that they only care enough to know
that the man with whom they place an
order can deliver what they buy. They
want to know, of course, what price the
retailer charges for his service and the
coal. That is about as far as they care
to go.
If, having answered the real question,
he starts in to say that he would like to
make the price cheaper, but cannot be¬
cause the railroads are unreasonable with
freight rates ; the mines give dishonest
weights ; tlie ruffians along the line are
stealing his coal ; the cost of selling is
high because of competition ; the team¬
sters are inefficient, wasteful, and so on,
the people become disgusted. They
shrug their shoulders and pass on. \Vhat
he was aiming at was some competitor,
but they do not know that. They think
he is merely whining. That always loses
friends.
The trouble with the apologizer is that
he has a too near view of his troubles. He
thinks too much about how the other fel¬
low stands. While thinking that way,
he unconsciously tries to knock the cither
fellow rather than to sell his own goods.
Every retail man has seen how the op¬
posite plan works. He has seen a coal
salesman enter his office with his head
up and a prosperous appearance. He has
listened to this man while he made all
kind of glowing declarations about him¬
self and the company which he serves.
The retailer says to himself that he is not
misled by that kind of “glory be” bunk,
but just the same he gives the order to
that sort of fellow. At that, the salesman
may be “shooting the bunk.” Me may
even be the most egotistical ass on earth.
But, he has the faculty of getting away
with it.
Still it is not the fact of his egotism,
but the fact that he does not apologize,
which brings him his friends in the trade.
The simple reason is that an egotist never
has any troubles to tell ; if he did have he
would not tell them. Therefore he never
bores anyone with statements about why
he failed to do such and such a thing.
He is a constitutional optimist, and that
is what the people like.
376
THE BEACK DIAMOND
[November 6
News Local to Chicago.
C. A. Bickett of the Bickett Coal & Coke
Company was in Pittsburgh the latter part of
last week.
One of the Chicago visitors on Tuesday was
1’. M. Lobas of the P. M. Lobas Company of
Milwaukee.
D. \V. Buchanan of the Old Ben Mining
Corporation spent the early part of this week
at the mines in Franklin countj'.
Farwell Gascoigne, sales manager of the Ed¬
wards & Bradford Lumber Company, is spend-
a well-earned vacation on the Pacific coast.
A. R. Thomas of Fremont, Neli., purchasing
agent for the Nye, Schneider, Fowler string
of yards, was in Chicago this week looking
over conditions in the local market.
The Chicago friends of the Clarkson Coal
& Dock Company of St. Paul received the an¬
nouncement early this week that Hugh Munro,
its secretary-treasurer, had died the latter
part of last week.
W. L. McClay, with Flutchins & Hyatt Com¬
pany, Lincoln, Neb., states that southern Illi¬
nois coal is making rapid strides in the Ne¬
braska capital, and he looks to a steady in¬
crease in consumption in his state.
The Interstate Commerce Commission No¬
vember 3d dismissed the complaint brought
by the Consumers’ Company against the Chi¬
cago and Northwestern Railway Company on
account of alleged discriminations against it in
the matter of switching rates.
Robert E. Carr, purchasing agent for the
■American Smelting & Refining Company at
Omaha, while in Chicago this week said his
company was using both coal and oil as fuel,
and as a result of their experiments with oil
he felt sure he would continue buying coal for
some time to come.
Warren R. Roberts, president, and Edward
E. Barrett, vice president, of the Roberts &
Schaefer Company, have just returned from
Canada, where they signed a contract with a
large coal company there for the designing
and construction of an electrically operated
anthracite coal dock bridge and storage plant.
D. S. Willis was visiting the mines for a few
days in southern Illinois. Mr. Willis is a close
student of operating conditions and says he
believes the time has arrived when the oper¬
ator will insist on getting a fair price for his
product. He incidentally remarked that a little
seasonable weather would help the operator
uphold his contention that he should get a
decent price for his coal.
James F. Callbreath, secretary of the Amer¬
ican Mining Congress in Washington, an¬
nounced his intention to visit Chicago again
on Monday of next week, the purpose being
to perfect some of the arrangements he is
making for the mining exposition which will
be held in Chicago the latter part of next year.
H. A. Kuhn of the Pittsburgh-Westmore-
land Coal Company, Pittsburgh, was in Chi¬
cago on Monday and Tuesday of this week.
John H. Walker of Springfield, president of
the Illinois Federation of Labor, has been
elected chairman of the new state commission
to investigate the causes of unemployment.
Graham . Taylor of Chicago was elected vice
president and John Wallace Dunnan of Pax¬
ton, secretary. Much of the investigating will
be made through the state free employment
bureaus in Chicago, Peoria, Springfield, Rock¬
ford, Rock Island and East St. Louis.
■\. W. Weller of West Point, Neb., treasurer
of Weller Brothers, a line yard concern, with
main offices in Omaha, was in Chicago this
week for a few days. Mr. Weller says the
agents for the warring nations of Europe have
bought up a large number of horses in Jiis
state at a good price. This extra revenue,
coupled with the high grain prices, has placed
the farmers in an enviable position which
should help the coal business, providing, of
course, the weather is cold enough this winter
to make coal burning a necessity.
Frank O. McCaffrey, vice president of Mc¬
Caffrey Brothers Company, Omaha, passed
through Chicago this week on his way to the
southern Illinois mining field. On his return
Mr. McCaffrey spoke eloquently of the prepa¬
ration methods in vogue at the Franklin
county mines. He also brought back a world
of information on the cost of producing coal
in that field which would prove interesting to
operators if they were available. He states
that Nebraska will be a battle ground between
Illinois and Wyoming coals, with the victory
going to the district that will make the best
price. “Mac” says he is going to be neutral
in the coming combat, as he has profitable
connections in both directions.
The United States supreme court has up¬
held a verdict of a jury in the United States
court for the eastern district of Illinois, finding
the Vandalia Railroad guilty of rebating. The
court declined to review an opinion of the
United States Circuit Court of Appeals, which
affirmed the jury’s verdict. The Vandalia was
charged with having lent .isSfiO.OOO to the
Lumaghi Coal Company at a rate of interest
less than it paid to obtain the money in order
to make the loan. .According to the jury’s
finding, the railroad lent the money at two
per cent, while it paid a St. Louis bank four
per cent in order to get it. .Also, according
to the jury’s finding, which was upheld by the
court today, the difference of the amount re¬
ceived from that paid for the loan constituted
a rebate on shipments of coal from the Lum¬
aghi mines.
The By-Products Coke Corporation, with
plants at South Chicago, will absorb the Fed¬
eral Furnace Company, also located in the
Calumet district. The latter company will be
dissolved. Terms of the deal provide for an
exchange of the coke concern’s stock on a
basis of three-fourths of a share for each
share of the furnace company’s capital. The
By-Products Coke stock is quoted on around
$145 per share. The Federal’s outstanding
stock amounts to $1,785,000, and the exchange
arrangements call for $1,338,750 of By-Prod¬
ucts stock. Of the latter’s $5,000,000 author¬
ized capital only $1,103,400 remains unissued,
so it is planned to increase the authorization
to $10,000,000. Shares in addition to the
amount necessary to complete the merger will
be issued and sold to present stockholders, the
proceeds being used to cover the cost of ex¬
tensions to the plant, now being made.
Gordon Buchanan was talking this week to
a coal man who has made extensive investiga¬
tions into conditions in the northwest. .As a
result he says that the people up there are
quite anxious that cold weather shall not set
in just yet because it might prove disastrous
all around. For one thing, the rains of the
summer delayed harvesting, and much of the
wheat in the northwest is now being thrashed.
According to estimates, this is not much more
than fifty iier cent done. Open weather is
needed so that the thrashing can be finished,
and particularly so that the grain can be
moved to market and the farmers can get
some of the coal hauled back home before
there is an urgent need for it. If cold weather
does not hold off the whole northwest is likely
to be in serious difficulty on account of not
having more coal. The farmers in the north¬
west, according to Mr. Buchanan’s investiga¬
tion, are not stocked up well or for any long
siege due to cold weather. While what he
says applies mainly to the northwest, other
investigators are of the opinion that the same
situation obtains to a greater or lesser extent
all through the western country, and there is
a danger of a serious shortage of coal so soon
as cold weather sets in.
There is quite a good deal of speculation
these days as to what the winter is going to be.
The first prophets to make themselves heard
were the Mesa Verde Indians in one of the
western reservations. They made themselves
conspicuous as prophets last spring, when they
predicted that the summer would be cold and
extremely wet. Every one knows that that
prophecy has been lived up to in every detail.
These same Indians now make the statement
that the coming winter is going to be unu¬
sually cold. This same prophecy is made by
observers of nature, and especially by the duck
hunters. Last week we quoted one of them
as saying that the ducks were this fall clothed
very warmly, indicating that they are pre¬
pared for a very long, cold winter. Other
indications point in the same direction. Now
comes the Coal Hill Coal Company of Omaha.
Neb., which is gathering information from a
great many different sources. It has sent out
a postal card on which it schedules six specific
questions which it asks of the recipient of
this card. These are; “Are corn husks thick
or thin? Are corn husks long or short? Is
the bark on trees thick or thin? .Are squirrels
storing up a supply? Is fur on animals or
birds thick- or thin? .Arc the muskrat houses
high or low?”
The speakers’ committee of the Chicago Coal
Alerchants’ association, of which L. Romanski
is chairman, makes the announcement that the
dinner of the association which was scheduled
for November 9th is being postponed until
November 16, because certain arrangements
could not be made in time for the meeting on
the 9th. Two very attractive features have
already been arranged for. One of them is an
entertainment by the Oxford male quartet,
which is known to be one of the best of its
kind in the west. Those who have heard it
say that as a matter of fact it has few equals
and hardly any superior as entertainers for a
gathering of this sort. To hear this quartet
is worth attending the banquet alone. In addi¬
tion to that there will be an interesting and
important address by M. F. Gallagher. He
is general counsel for the association and has
had quite a lot to do with the important work
of the association in the last two or three
years. In view of the fact that this is going
to be a meeting which will receive formally
into the association something like seventy-five
new members, it is considered important that
they and the others get in one terse state¬
ment, an outline of just what the association
has done, and therefore what it means to the
members. It is going to be the purpose of
Mr. Gallagher’s address to outline the work of
the association, not from a statistical point of
view, but in an entertaining and instructive
way.
Small Activities.
Detroit Local News.
The George Hall Coal Company of Ogdensburg,
N. Y., has given the Detroit Shipbuilding Com¬
pany an order for construction of a steel bulk
freighter of Welland canal size for use in the
coal trade on Lake Ontario and St. Lawrence
river. The steamer is to be delivered in June,
1916, and is to be a duplicate of the Adrian
Iselin, built by the same company for the George
Hall Company two years ago.
At a largely attended meeting and dinner for
members of the Detroit Coal Exchange at the
Hotel Cadillac, Thursday evening, there was
much discussion of the ordinance pending before
the village council of Highland Park, a Detroit
suburb, to prevent delivery of coal and coke
in the village, unless the stock contains less than
a specified percentage of moisture. The progress
being made in prevention of the theft of coal
from cars and railroad tracks in the campaign
conducted by F. E. Reeves, the exchange’s secre¬
tary, also roused much interest.
Bpston Trade Notes
The barge, .Atlantic, with a carrying capacity
of 3,500 tons, built for the Staples Transporta¬
tion Company of Fall River, was recently
launched at Bath, IMe.
The steamer, Stephen R. Jones, is fast nearing
completion at the Newport News Shipbuilding
Company’s yard. The boat is bein.g built for
Crowell & Thurlow of Bo.ston.
The September earnings available for dividends
of the coal department of the IMassachusetts Gas
Companies were $95,899 ; for the same period last
year were $96,343, and in 1913, $122,330. In the
three months ended September 30, earnings were
$295,670, as against $276,244 last year, and $331,-
875 in 1913.
Some Trade Notes
W. .A. Merrill, president of W. .A, Merrill &
Co., Garrett, Pa., was a visitor at local offices.
Air. .Appleton of Dexter & Carpenter, New
A'ork, was here to siiperintend some export ship¬
ments.
During the past week but three vessel charters
were noted for loading here, the smallest num¬
ber for some time past.
Coa.stwise charters are few and far between.
Alost of the movement both north and south
is by company-owned steamers or vessels on
time charters.
The Baltimore & Ohio railroad has ordered
thirty Mallet engines and 2,900 more steel hopper
cars." This makes 4,000 coal cars now under con¬
tract for that road.
The growing importance of the Western
Alaryland railroad as a coal carrier is shown by
the statement just is.sued for the fiscal year
ended July 1 last. During that period the total
coal tonnage of the road ran to 7,730,558 tons,
a gain over the previous fiscal year of 1,236,690
tons. This was all the more remarkable in view
of the p( or coal .situation generally.
No. 19]
THE BLACK DIAMOND
377
Facts Which Determine
The Export Situation.
Exports of bituminous coal over Atlantic sea¬
board ports continue to decline, due to the lack
of vessels. This shortage is becoming more
acute each week. Moreover, according to cables
from England this week, the British government
will requisition more of its merchantmen for its
service ; government requirements having in¬
creased due to the growing importance of the
transportation of troops and munitions to the
Dardanelles and the Balkans. In an emergency,
it is stated, England may regulate the employ¬
ment of shipping in the carriage of cargoes be¬
tween foreign ports by a license system.
Early, but not official, reports show October
bituminous exports from Hampton Roads and
Baltimore, with comparisons, as follows :
V.7^ V7LL.9 XIlLlCdSC*
Hampton Roads . 441,643 196,423 235,220
Baltimore . 130,984 85,152 45,832
Total . 572,627 281,575 281 ,052
Philadelphia figures for October of this year
are not yet obtainable. In October, J914, Phila¬
delphia exports were 57,043 tons.
Coal is not in heavy supply in tide, although
the export movement is so greatly restricted
for lack of tonnage. Car and labor shortage
and a better domestic demand keeps the tide¬
water supply well in line with current needs.
Hampton Roads October Exports.
Exports of coal from Hampton Roads for
October, 1915, with comparison for October, 1914,
were as follows ;
f.amberts Point.
Country — 1914. 1915.
Antofagasta, Chile . 6,6S0
liarbados, B. W'. 1 . 2,253 9,207
Buenos Aires, Arg . 7,300 0,691
Bombay, India . 3,010 ....
Cristobal, C. Z . 21,950 49,030
Curacao, D. W. 1 . 5,374
Catania. Italy . 4,850
Civita Vecchia, Italy . 9,1.51
Dakar, French West Africa . 12,830
Georgetown, Demerara, B. (! . 2,501
Genoa, Italy . 0,600 48,177
Gibraltar . 8,800 ....
Havana, Cuba . 16,101 7,988
Italy — any port . 54,530
Iquique, Chile . 4,070 500
Kingston, Jamaica . 3,200 3,660
Leghorn, Italy . 3,874
Manila, P. 1 . 6,503 ....
Naples, Italy . 9,060
Pernambuco, Brazil . 8,598
Puerto Ferrajo, Italy . 12,646
Puerto Plata, S. D . 805
Palermo, Italy . 4,733
Reggio Calabrio, Italy . 4,000
Rio de Janeiro, Brazil . 3,863 6,398
Santa Cruz, Teneriffe, G. C. 1 . 2,011
Suez Canal . 5,840
Spezia, Italy . 5,268 4,349
San Juan, P. R . 1,351 3,025
Trinidad, B. W. 1 . 5,635
Torre Annunziata, Italy . 15,314
Totals . 90,885 307,469
Newport News,
Country — ■ 1914. 1913.
Augusta, Italy . 3,034
Barbados, B. W, 1 . 1,92.8
Brindisi, Italy . 15,315 ....
Cienfuegcs, Cuba . •• .... 2,825
Callao, Peru . 2,303
Cardenas, Cuba . 2“ 500
Georgetown, Demerara, B. G . 4,473 900
Genoa, Italy . 14,598
Havana, Cuba . 9,182 13,594'
Jucara, Cuba . 891 ....
Mazarrcn, Spain . 1,504
Montevideo, Uruguay . 10,824 0,527
Naples, Italy . 5,386
Para, Brazil . 2,942 1,856
Puerto Mexico, Mexico . 1,656
Puntas Arenas, Chile . 7,326 ....
Rio de Janeiro, Brazil . 10,378 1,826
Spzzia, Italy . 6,330
San Juan, P. R . 1,266 ....
Santiago, Cuba . 3.365 2,625
Sagua, Cuba . 1,940 1,452
Seville, Spain . 1,556
St. Lucia, B. W. 1 . 4,591 5,540
Trinidad, B. W. 1 . 6,934 6,377
Taranto, Italy . 5,194 5,163
Cayo Francis, Cuba . 1,446 ....
Totals . 86,067 90,019
Sewalls Point,
Country— 1914. 1915.
Bahia Blanca, .Arg . 4,967
Bahia, Brazil . 4,467 ....
(ienoa, Italy . 4,763
Havana, Cuba . 3,006 3,228
Kingston, Jamaica . 800
Montevideo. Uruguay . 3,811
Para. Brazil . 857 ....
Pernambuco, Brazil . 900
P.nlermo. Italy . 5,811
Rio de Janeiro, Brazil . 4,910 10,599
St. Lucia, B. W. 1 . 9,186
Chaparra, Cuba . 4,409 ....
Totals . 19,984 44,155
Total for the three ports for October, 1915,
Our Export Prospects.
441,64.3 tons, as compared with 196,936 tons for
October, 1914, showing an increase over last
year of 344,680 tons.
Baltimore October Exports.
Exports of coal from Baltimore during the
month of Octolier were as follows :
Country — Tonnage.
Italy . 52,657
Sweden . 32,282
Cuba . 23,702
.Argentine . 8,105
Egypt . 7,035
Spain . 3,107
Martinique . 1,719
Guatamala . 1,528
Dutch Guiana . 849
Total . 130,984
English Coal Exports.
Exports of coal, coke and manufactured fuel
from the United Kingdom during September and
the first nine completed months of 1913, 1914 and
1915 :
Country —
1913.
1914.
1915.
Russia .
. . . 668,472
17,398
3,173
Sweden .
... 394,314
633,546
195,722
Norway .
... 174,861
233,7.54
224,461
Denmark .
405,842
291,764
. . . 833,326
Netherlands .
. . . 154,904
276,031
174,990
... 164,448
44 416
France .
509,667
1,087,755
Portugal, Azores and
Ma-
deira .
. . . 160,840
87,177
96,766
Spain and Canaries....
. . . 270,678
227,401
155,553
Italy .
697,693
558,638
53,761
Greece .
19,264
6,856
30,103
. . 5l’501
Algeria .
. . j 66]505
39,733
91,738
Portuguese West Africa. . 18,624
37,824
5,405
Chile .
... 27,204
8,040
271
Brazil .
59,528
11,951
Uruguay .
65,642
18,866
22,120
Argentine Republic. . . .
... 267,142
153,016
132,448
Channel Islands .
19,915
14,840
Gibraltar .
. .. 14,940
24,447
27,689
Malta .
13,649
5,927
Egypt (incl. .Anglo-Egyntian
Sudan) .
... 258,232
133,177
136,000
Aden and dependencies
_ 22,930
22,125
5,095
British India .
... 8,827
9,222
5,005
25,601
17,969
Other countries .
89,488
37,860
Total — •
Anthracite .
_ 2.54,811
113,014
177,614
- Steam .
2,722,537
2,708,633
Gas .
. . . 996,158
789,910
658,695
Household .
_ 175,022
132,622
120,599
Other sorts .
- 304,078
101.105
226,492
Total .
_ 6,197,180
3,859,188
3,892,033
Coke .
130,264
108,471
Manufactured fuel .
. . . . 179,041
107,001
96,133
Total of coal, coke
and
manufactured fuel. .
4,096,453
4,096,637
First Nine Months.
Total —
1913.
1914.
1915.
Anthracite .
. 2,189,491
1,835,166
1,520,857
Steam .
.39,755,473 1
34,649,465
23,994,403
8,325,750
5,653,905
Household .
. 1,335,833
1,108,596
864,035
Other sorts .
. 2,653,279
2,197,372
1,381,012
Total .
.54,517,788
48,116,349
33,414,212
Coke .
. 838,055
824,325
684,689
Manufactured fuel ....
. 1,542,365
1,431,938
960,636
Total of coal, coke and
manufactured fuel..
.56,898,208
50,372,012
Note. — The hgures in the above
tables do not include
Admiralty and certain
other shipme
•nts.
Coal Scarcity in
Spain.
The comparative lack of supplies of coal in
Spain forms the subject of an article published
by the Spanish “Econoviista," which states that
in normal times about one-half of the coal re¬
quired is procured from Great Britain. But in
the first quarter of 1915 the imports from that
source declined by over 450,000 tons, and it is
assumed that the deficiency as compared with
the customary imports will exceed 2,000,000 tons
for the whole of the year. It is considered that
the deficiency cannot he repaired either by a re¬
duction in the consumption, which will cause
certain industries to restrict their activity, or by
imports from the Unted States, or by the use
of stocks which were accumulated prior to the
war. During the first quarter of 1915 the im¬
ports of English coal amounted to 500,000 tons
as compared with 992,000 tons in each of the cor-
responiling quarters 1914 and 1913, and it is
expected the reduction will become accentuated.
The Spanish newspaper has now asked the gov¬
ernment to impose a total prohibition on the ex¬
ports of native coal and to stimulate the home
production with all possible means. The in¬
dustrial consumption of coal in Spain, contrary
to expectations, has by no means diminished. No
doubt certain industries have reduced the ton¬
nage used, but others have increased quantity.
The economies effected on the railways have been
counterbalanced by the greater consumption of
the shipping companies, whilst the decrease in
the district of Huelva has been offset by an in¬
crease in Barcelona.
Norway’s Coal Imports.
The coal and coke imports into Norway during
the first half of this year amounted to 1,641,00(1
tons as against 1,356,000 tons in the correspond¬
ing period of 1914.
English Exports to South America.
English coal exports to South America for
September of the years 1913, 1914 and 1915,
were as follows :
Country— 1915. 1914. 1913.
Chile . 271 8,040 27,204
Brazil . 11,951 59,528 158,896
LHuguay . 22,120 18,866 65,642
Argentine . 132,448 153,016 267,142
166,790 239,450 518,884
Barcelona, Spain, Coal Trade.
Carl Bailey Hurst, American Consular General
at Barcelona, Spain, writes The Black Diamond,
under date of October 11th, as follows:
“I beg to quote the official statistics of the
Spanish government as to the importation in
metric tons of 2,204.6 pounds each of coal and
coke during the months of July, 1913, 1914, and
1915, and during the first seven months of the
same years
During July.
1913. 1914. 1915.
Coal, metric tons . 220,758 205,522 215,310
Coke, metric tons . 22,869 47,869 23,577
January to July, Inclusive.
1913. 1914. 1915.
Coal, metric tons . 1,627,290 1,534,617 971,706
Coke, metric tons . 206,167 239,559 117,789
“For the first weeks of the war the lack of
coal supplies threatened to paralyze industries
in various parts of Spain, but the conditions
were not such as to hamper business in general
and have improved with the continuous and
steady importations of coal from the foreign
sources which have been most relied upon.
American coal has here come into competition
with coal from Wales which formerly supplied,
to a very large extent, the Spanish market.
Partly owing to the greatly increased freight
rates, Welsh coal is at present quoted at the same
price as coal from the United States, which is
comparatively new in the Spanish market.
Figures as to extent of the imports into Spain
of coal of foreign origin are not available by
countries, but would undoubtedly show a great
increase during the past year in the amount of
coal imported from the United States. At pres¬
ent the prices quoted in Barcelona for Welsh,
American and Spanish coals are respectively
from $13.30 to $14.25, and .$10.45 to $12.35, all per
metric ton of 2,204.6 pounds each, placed on
wharf. The American coal referred to is known
here as West Maryland gas coal. In June the
prices for these coals were, respectively, from
$14.40 to $16.44, $13.87, and from $11.97 to $13.87.
“The general industrial conditions in Spain
are, under existing circumstances, not unfavor¬
able to development in spite of the war, which
has had the effect of stimulating certain branches
of industry, while it has naturally affected others
disastrously. It can hardly be doubted that the
war has more or less indirectly tended to develop
the use of electric power in industries, due in
part to the important hydro-electric facilities
offered in this the chief industrial region of the
country.”
Recent Coal Freight Charters.
Steamer Alfred Noble (Nor.). Virginia to Montevideo
or La Plata, coal, $9.12, November.
Ship Nova (Urug.), Philadelphia to Puenos Aires, coal,
$9 and port charges.
Schooner Fannie Palmer, Raltimore to Porto Rico, coal,
p. t.
Steamer Achlibster (Br.), Atlantic Range to west coast
Italy, coal, about 65 s, November.
Steamer New Sweden (Swed.), Philadelphia to Sweden,
coal, p. t. '
Bark Novo (Nor.), Philadelphia to Buenos Aires, coal,
$8, free discharge.
Schooner Edward J. Lawrence, Virginia to Barcelona,
coal, $10.
Schooner Harwood Palmer, Virginia to Lisbon, coal,
$10.
Schooner Dorthy Palmer, Hampton Roads to Italy,
coal, $10.
Steamer St. Theodore (Rr.'), Baltimore to Genoa, coni,
p. t.
Steamer Mimer (Br.), Baltimore to Mexico, coal, p. t.
Schooner Frank P. Braincrd. Philadelphia to Marti¬
nique, 800 tons coal, p. t.
Steamer Tenbergen (Dutch). Philadelphia to Havana,
coal. p. t., prompt.
378
THE BLACK DIAMOND.
[November 6
General Review.
Steam Business Is Increasing But Demand
for Domestic Coal Is Held Back
by the Weather
Coal market developments for this week are
demonstrating again that since the trade
prosperity depends upon buying from both the
domestic and steam departments, neither one
alone can support the trade in prosperity. That
is, this week the steam business everywhere has
been more brisk than at any time in a year at
least, if not in several years. However, over a
wide territory there has been a subnormal de¬
mand for domestic coal. This of course is trace¬
able directly back to the weather. Lack of sale
of the domestic sizes has on the average, thrown
a larger volume into the steam market and with
the exception of certain points, has had a ten¬
dency to ease the steam coal situation. While
therefore the coal market is in good condition,
it lacks the buoyancy and vigor which it would
have if both departments were absorbing equal
ttmnages.
The developments in the steam trade are de¬
cidedly interesting. A short time ago the export
market was about the only department of the
trade that was commanding any interest or
aroused enthusiasm. That was taking an increas¬
ing amount of coal and thus was relieving the
home markets. There is still a possibility of sell¬
ing big amounts of coal abroad, and perhaps more
than was sold a few months ago. The first dif¬
ficulty, however, is to get boats, the second dif¬
ficulty is to get the doal and the cars to move
it. . •
Promising as the export trade may be, it is
not the dominant factor in the trade because
liome demand in the meantime has become more
important. In the Pittsburgh district which is
made prosperous by business from the steam
trade, the situation is almost unprecedentedly brisk.
Coke ovens are running to as nearly full capacity
as they can, the labor and car supplies being con¬
sidered. Because they cannot run quite to ca¬
pacity, prices are rising and showing a runaway
tendency. The demand for coal for coke mak¬
ing of course is good, therefore, Pittsburgh fac¬
tories and those in the surrounding territory
are also taking much more coal then they were
and the railroads are buying not only for imme¬
diate use, but for storage purposes. All things
considered, the market is in extraordinarily good
position.
The same situation is seen in the east where
as Philadelphia reports, even the ofif-grade coals
are twenty-five to thirty cents a ton higher than
they were six weeks ago. The only weak spot in
the eastern market is New England and that is
so not because the demand is light, but because
the sales agencies are indulging in a price war.
In the west, the steam demand is improving
steadily. For example, there is need for much
more coal in the northwest than has been car¬
ried there by the lakes and it is doubtful whether
that coal will be moved because vessels are in
tremendous demand for grain and ore movement
and are getting such attractive rates that they
are not stopping for coal. This may bring on a
shortage in the northwest later, but that is merely
incidental. The big factor is increased demand
for steam coal in the northwest for railroads
and other i)urposes. Through Ohio, Indiana, Illi¬
nois, and Iowa, the demand for steam coal has
been considerably heavier in the last few weeks
than it was heretofore. This is not putting up
prices, however, because in the same territory the
demand for domestic coal is small, therefore the
operators are diverting to the steam trade a good
part of the coal that should be going to the do¬
mestic trade. Everything considered, the steam
market is strong but domestic is technically weak.
That is, there is a shortage of coal everywhere
and this is going to mean a clamorous demand
for it later. Coal operators appreciate this fact
and also the fact that car and labor supply will
interfere with deliveries. They are not sacrificing
their coal now in order to pass it on an unwill¬
ing market, but are holding it in reserve to get the
better prices which are unavoidable.
Donald E. Conn, formerly connected with
the Great Northern & Soo Line as combustion
engineer, has accepted the position of com¬
bustion engineer with the Wyatt Coal Com¬
pany and has taken charge of the laboratory
of the company in Cincinnati, beginning work
Monday. Mr. Conn is a graduate of Ann Arbor
university and also of Cornell university and
comes highly recommended.
Chicago Market.
Buying Is Slowed Down Because of the
Weather and Screenings Prices Have
a Tendency to Be Firm.
Office of The Bl.vck Di.vmond,
Chicago, November 4.
Market conditions in the territory for which
Chicago is the distributing point are not satis¬
factory either to the retail dealer or the coal
producer. The weather has been quite warm,
consequently coal consumiition has been reduced
to an absolute minimum for domestic purposes.
.\s a result the mines either have accumulated
unsold coal at the mines or have been compelled
to slow down production.
The steam coal situation in the meantime has
weakened a little while lump production has been
curtailed by small domestic demand. Screenings
output has also been lessened and the price is a
trifle stronger. However many of the domestic
sizes have been sold in substitution for regular
steam sizes and thus the steam department of
coal is not overly strong.
In technical detail the market is in good posi¬
tion. That is, the steam consumption is increas¬
ing all th£ while, production is being limited by
both labor and car shortage, and the stocks on
hand are on the average quite small. This makes
the situation technically strong and to realize this
strength, needs only a touch of cold weather.
The Franklin county market has been much
easier within the last week. At the beginning
of the week operators had quite a lot of no-bill
coal on track at the mines. This situation was
corrected by the sharp curtailing of production
for a day or so and by the more cautious produc¬
tion program since. Still there is no lively de¬
mand from retailers and all sales are made with
difficulty. Further, there is some rebellion on
the part of the retailers on account of the hi.gh
average price which is now being asked by the
operators and there is some delay in buying on
that account. Screenings are just fair, but the
operators are holding firmly for a minimum of
fifty cents in Chica.go and sixty cents in the
country. Prices up to Thursday were ;
F. O. B.
Franklin County — Chicago.
I.ump . $2.65@e.80
Egg . 2.55@2.86
No. 1 nut . 2.65@2.80
No. 2 nut . 2.5.5
Mine run . 2.15@2.20
2-inch screenings . 1.55@1.65
F. O. B.
Mines.
$1.60@1.75
1.50@ 1.75
1,60@1.75
1.50
1.10@1.15
.50® .60
The Williamson county situation is almost
precisely the same as that in Franklin county.
That is, weather slowed down the demand for
domestic coal and the effort of the operators to
run the mines to capacity supplied enough coal
for the steam market to overcrowd it and weak¬
ened the prices. The tone of the market gener¬
ally is soft, but that is being corrected by the
sharp curtailing of output. There has been some
shading of prices by smaller concerns, but the
major operators are still adheriag to the prices
which are quoted herewith. The market up to
Thursday was :
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
The Saline county market has been fairly firm
up until now, because a number of mines in that
field have been idle. However, the tendency is
to increase production and with the slow demand
for domestic coal and the overcrowding of the
steam coal market the situation is not the very
best. Screenings are fairly strong at from fifty
to sixty cents. The prices up to Thursday were :
F. O. B. F. O. B.
Saline County Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
■Mine run . 2.20 1.15
.Screenings . 1.55.)^ @1.65 .50® .60
l!4'inch lump . 2.35 1.30
The demand for domestic coal from Central
Illinois is very light. Some operators have cut
the price to as low as $1.50 in an effort to move
output, but the Sangamon county operators ad¬
hered to circular of $1.75, suffering a loss of busi¬
ness in consequence. Screenings market is just
about steady at prices previously quoted. The
prices up to Thursday were;
F. O. B. F. O. B.
Central Illinois — Chicago. Mines.
Lump . $2.57 $1.75
Keg . 2.32@2.47 1.50@1.65
Nut ; . 2.47 1.65
Mine run . l-$7 1.05
Screenings . 1.22@1.32 .40® .50
Clinton, Ind., operators have suffered a loss
of domestic orders, due to the soft weather, but
this has influenced operators mainly in the Num¬
ber Four vein. Steam demands are improving
and this holds up the price on Number Five and
Six' coals. The prices up to Thursday were :
,,,. , F. O. B. F. O. B.
Clinton Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1 75
^ 2.12 1.35
iNo. o and 6 mine run . 1,37 j
No. 5 and 6 screenings . 1.37®1.’42 .60® !65
Since Knox county coal is going mostly to the
steam trade, that market is fairly firm, although
of course the competition affordedi by other
fields has a weakening tendenev in spots. Prices up
to Thursday were :
r- . F. O. B. F. O. B.
T Chicago. Mines.
. $2.37 $1.50
Mine run . 187
Screenings . ] 50 gg
Anthracite sales agencies got some unsold
coal m this market within the last week and had
to move lively in order to dispose of it before
car service charges accumulated. In the main, the
market is very dull because of the warm weather
and because the householders are not buying
Prices have not been strong, naturally, but so far
as known, have not weakened over the big terri¬
tory reached through Chicago.
The smokeless situation is almost precisely the
same as it was a week ago. That is, the major
operators are holding for $1.40 for mine run coal
and are getting it because smaller production and
a shortage of cars restrict shipments of coal
which have been previously sold or called for on
contract. Any movement of this coal would
have to be sold at a sacrifice because the demand
is now just about at the minimum. Some off-
.grade coal is on the market occasionally and this
sells from $1.20 to $1.25. None of the better
grades can be had at any such figure. Lump has
been a little soft in the countrj', selling at $1.90
to $2.00. Egg on the contrary has been firm
■filing from $2.10 to $2.25. The market up to
Thursday was :
„ , , F. O. B. F. O. B.
Smokeless— Chicago. Mines.
,^l'"erun. . $3.45 .$440
Lump and egg . 3.95@4.30 1.90@2.25
The Somerset county market is influenced
mostly by car supply. Since that is short, and
since there is a good demand in the east, not
much of that coal is comin.g west. In conse¬
quence the mines run price is firm at $1.40 and
lump and egg are firm at $2.25. The egg especi¬
ally being short of the demand. The prices up to
Thursday were :
„ ^ F. O. B. F. O. B.
Somerset County— Chicago. Mines.
Mine run . $3.40 $1.40
Lump and egg . 4.05®4.30 2.00®2.25
Hocking coal has been influenced by the weather,
the better grades are in short supply and the
prices firm at $1.75. Some other coals, however,
are obtainable at $1.50 to $1.60. The prices up
to Thursday were :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
. Domestic lump . $3.15®3.40 $1.50@1.75
The splint market has been a little easier be¬
cause of the weather, but this easy tendency has
been offset as far as price is concerned by the
known shortage of both cars and labor at the
mines. While a large volume of business is mov-
in.g, $1.50 on the shipments direct from the mines
is the minimum, with $1.60 charged for the coal
moved in box cars. The market up to Thursday
was :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
1'4-inch lump . $3.40@3.50 $1.50@1.60
Eastern Kentucky operators are finding a good
market and prices pretty generally have strength¬
ened up ; $1.90 on block and lump is about the
minimum and most concerns are not askin.g more
than $2, although the better known coals are sell¬
ing for $2.25. Prices up to Thursday were;
F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Dr.nestic lump . $3.80@4.15 $L90@2.25
Egg . 3.25®3.75 1.35®1.35
The runaway tendency of the coke market got
a check this week when the consumers stopped
buying at the fancy prices charged by the opera¬
tors. However, the demand must be satisfied and
a rise in prices is predicted because it is impos¬
sible to .get enough men to man the coke ovens
and because the supply of cars is sure to be short
of requirements. Labor and cars are thus the
determining factors in prices. The market up
to Thursday was ;
F. O. B.
Coke— Chicago.
Connellsville . $5.50
By-product, foundry . 5.50
By-product, egg and stove . 4.75
By-product, nut . 4.75
Gas house . 4.00
No. 19]
379
THE BLACK DIAMOND.
Pittsburgh Trade.
Demand for Coke Is Heavy and the Sup¬
ply of Cars and Men Is Short —
Coal Prices Strong.
Office of The Black Diamond,
l.)()2 Oliver Building,
Pittsburgh, Pa., November n, I'll.').
Nearly all the forces that may be counted
upon as having anything to do with the coal
and coke market, seem to be converging at a
point, that leaves no doubt but that a strong
market exists for these products, and that
greater activity is sure to develop in the imme¬
diate future. There seems to be no free coal
or coke for spot delivery, — the lake trade
pushing for coal, and the iron and steel trade
instead of taking the minimum as usual on
contract, are exacting the maximum, and this
with car and labor shortages, has put pro¬
ducers to the bad on deliveries and causing
much inquiry for spot delivery — with the effect
that prices are hardening all along the line,
and many operators are out of the market.
Some coal producers claim to see material
advances in price in the near future, and coke
producers are talking of $5.00 coke three
months from now. These same optimists preT
dieted $3.00 coke sixty days ago — and today
their predictions are practically fulfilled.
In coal, as stated, numerous producers are
sold up, and taking no orders. Any gas slack
that can be found is bringing 80c to 90c, and
$1.00 is quoted freely. Pan Handle slack
ranges 75 to 80c, with mine run, three quarter,
and five quarter screened coal — quoted at
$1.35, $1.35, and $1.45 respectively. Some
stocking of coal is reported in anticipation of
continued advances.
Last week some operators failed to get more
than 40 to 50% of car requirements, and this
against consumers calling for almost double
shipments on specifications.
Monday last being “All Saints Day,” a reli¬
gious holiday with many, production was ma¬
terially cut down, which caused still further
inconvenience.
Coke producers find the labor question more
difficult than the coal operator and predict that
advanced prices for labor will develop even
before the first of the year, all these factors
tending to hold prices firm, with upward trend.
Spot furnace coke is bringing $2.75 and $2.85
with foundry ranging from $3.00 to $3.25. The
advance in pig iron has put sliding scale coke
at $2.40 figure, and a further advance of 30c
is anticipated — the contracts calling for one-
fifth of the advance in pig.
Some inquiry has been made by a large
Cleveland interest for 40,000 tons furnace coke
for the first quarter, which indicates that their
present requirements are not being met by
contracting producers, evidently on account of
the labor situation.
A number of rumors have been afloat for
some months past, regarding mergers of large
Pittsburgh coal interests, the past week devel¬
oping a new one — quoted below — supposedly
originating in Philadelphia and appearing in
the Pittsburgh dailies.
“It is understood that the most important
railroads entering Pittsburgh, and the Pitts¬
burgh Coal Company, with other large bi¬
tuminous interests, are laying plans to disinte¬
grate the Wabash-Pittsburgh Terminal System
of railroad lines and coal properties, and then
virtually to annex them.
“The coal combination proposed would take
in the Pittsburgh Terminal Railroad & Coal
Company’s valuable coal lands and operating
mines, the Pittsburgh Buffalo Company, the
Pittsburgh & Westmoreland Coal Company,
the United Coa!l Company, the Carnegie Coal
Company, and perhaps others. It is under¬
stood that such new company, which would
have a producing capacity of 20,000,000 tons
of coal a year, is to be dominated by the
Pittsburgh Coal Company.”
A call at the headquarters of some of the
companies named failed to get a confirmation
of the above — in fact, it’ w'as claimed they
knew nothing at all about such a scheme. It
was stated, however, by one party that “some¬
thing was evidently going on.’’ .^t another
office ’twas stated that a number of wealthy
Jewish capitalists in the cast had been over
looking these coal properties and that this
fact could possibly have some bearing on the
above quoted proposition, but all deny any
actual knowledge of the above statements. This
rumor, together with the reports of two weeks
ago, including the Bethlehem Steel interests in
a similar combine of Pittsburgh companies,
has been the cause of much inquiry among the
trade, and yet, nothing of a tangible nature
can be found on which an opinion could be
hazarded.
River interests are at a standstill again on
account of low water, — and but little coal
seems to be accumulating in this harbor, the
demand from other directions diverting ship¬
ments to rail when it can be accomplished.
Local domestic trade has not developed to
any great extent, according to retailers’ state¬
ments, but a decided drop in the temperature
today, if continued, will undoubtedly be re¬
flected in an increased demand for coal for
home consumption.
Personal and News Items.
E. A. Upstill, selling agent of the Keystone
Coal & Coke Company, at Cleveland, spent
some days in Pittsburgh this week.
The Cannonsburg (Pa.) Gas Coal Company,
which sunk a shaft north of the Standard
mill, is driving its entries and getting ready
to mine coal on an extensive scale. The shaft
is 168 feet deep, and eight entries have been
driven. A tipple has been built, and some coal
is being taken out.
Two miners imprisoned by the slide in the
mine of Ford Colliery at Curtsville yesterday
dug themselves out this morning, thereby re¬
viving the hope that Frank Morgan, the fore¬
man and other miners may be reached and all
be rescued. How many men are in the mine
IS not known. Thus far the company has not
been able to check up the men with any de¬
gree of certainty.
The officers of the Ohio River and Great
Lakes Coal Company elected officers as fol¬
lows: T. S. Lackey, president; R. W. Gilmore,
vice president, and A. D. Williams, secretary
and treasurer. Other members of the board of
directors are Charles Boehler, J. L. Callard,
Ray V. Hennen, H. L. Silcox, A. W. Cottom,
Ida T. Hayes and Joseph Gault. This com¬
pany holds a tract of 3,000 acres along the
Ohio river. A diamond drill test well bored
on the land two weeks ago disclosed a six-foot
ten-inch vein, of which si.x inches represents
roof coal.
Construction work on the Chartiers South¬
ern Railroad, a branch proposed to extend
from Van Eman to Marianna, which was sus¬
pended late last year, owing to industrial
depression, is to be resumed at once and the
work pushed to completion. The roadbed was
graded last year, bridges constructed at points
along the line and a tunnel driven near Glyde,
but there is yet much work to be done. The
road will open up a rich coal field through the
Linden valley and south as far as Ten Mile
creek. It is being built by the Pennsylvania
system.
That the Consolidation Coal Company will
commence immediately to develop its fiinga-
mon tract of coal, lying in the vicinity of
Wyatt, in this county, was an announcement
made at the Fairmont, W. Va., offices of the
company. To get the coal to the markets the
Western Maryland Railway Company will con¬
struct a spur from the M. R. division of the
Baltimore & Ohio Railroad at the mouth of
Bingamon creek, to Wyatt, a distance of eight
miles. Three mines will be opened on the
tract and they will be the largest and most
modern in the Clarksburg and Fairmont re¬
gion, giving employment, when at their normal
capacity, to a thousand or more men.
Plans for the erection of 400 new ovens for
the Alicia works of W. Harry Brown, near
Brownsville, have been drawn. It is under¬
stood that some changes will be made in the
engineer’s plan and the work on the new ovens
will hardly commence until the first of next
month. The Alicia works are among the most
up-to-date, independent plants in Fayette
county. It has one of the large cranes that
carry coal to the river, where it is deposited
into waiting barges and shipped down the
river. The new opening at Ali<;ia No. 2 has
been cleaned and the main heading is now
being extended to the boundry line and it is in
excellent condition for the development of the
large coal acreage that is owned by this com¬
pany.
M. B. Schofield, president, M. B. Schofield Com¬
pany, Oklahoma City, spent several days last
week in McAlester calling on operators who suii-
ply his company its tonnage of coal. Mr. Scho¬
field predicts a fine winter’s business.
Birmingham Trade.
Birmingham, Ala., November 4. — (Special Cor¬
respondence.) — The coal operators report a steady
business as compared with what has been, but
there is room for improvement. The market is
a little quiet again, due, no doubi, to the weath¬
er. Domestic coal has had a slump.
Steam coal demand is not as large as the out¬
put, but is in fair condition. The railroad de¬
mand is increasing. Most of the cotton oil
mills are all running.
■‘The coal business is feeling the effect of a
little depression,” says J. L. Davidson of the
Alabama Coal Operators’ Association, “but there
is hope of an early recovery. The weather con¬
ditions have great effect, and the increase in
freight rates on coal into Louisiana from the
Alabama fields also has had some effect. How¬
ever, the river transportation facilities are com¬
ing to the rescue of Alabama operators to some
extent, but many consumers have always been
receiving their supplies of coal via rail and are
still looking to that mode of delivery.
Coking coal is still in good demand, with fur¬
naces taking large tonnages. Blacksmith trade
is only fair.
Intimation is given in coal circles that the
Sloss-Sheffield Steel & Iron Company a little
later will participate in the Warrior river trans¬
portation movement from this section into New
Orleans. A trip made by J. W. McQueen, vice-
president of the company, up the river from Mo¬
bile to Tuscaloosa last week, as one of the guests
of E. L. Paulley of the Standard Oil Company
in a yacht brought to mind the possibilities of
the river facilities. Mr. McQueen, having made
the trip before, acted as pilot. Estimates were
made that by adding a few more feet to the locks
a ten-foot draught could be attained on the river.
There is a steady downward movement of coal
on the river.
Figures in hand on coal production indicate
that the Alabama mines will show an aggre¬
gate output in 1915 equal to, if not better, than
those of 1912, when 16,513,040 tons were mined.
Chief State Mine Inspector C. H. Nesbit this
year is not looking for the high-water mark at¬
tained in 1914 of 17,907,284 tons, as the coal
business has been rather dull.
Inspector Nesbitt went to Walker county on
Tuesday to make a full inspection of the strip
mining that has been started there. The pro-
('uction is being increased and it promises to be
of consequence. The coal, too, it is understood,
is proving to be of good quality.
“Of all the large industries in the Birmingham
district, coal mining has been the slowest in start¬
ing on the line to improvement, but at last there
are signs of better business for the operators,”
said H. E. McCormick. “Railroad traffic is
increasing, and when the railroads are busy
the demand for coal output, as a matter of
course, increases. I am expecting to see a very
decided imp-ovement in the coal trade during
the next few weeks.”
Coke continues interesting and there is a steady
production wherever possible. The by-product
plants are in full operation and there is a de¬
mand for every product. The repairs to the big
benzol plant of the Tennessee Coal, Iron & Rail¬
road Company at Fairfield of the damage done
through the explosion two weeks ago have been
rushed and the interruption will soon be for¬
gotten.
Prices for October and the balance of the year :
F. O. B. F. O. B.
Bibb County Domestic Coal — Mines. Birmingham.
Red ash Cahaba lump . $3. (Id $3.30
Red ash Cahaba lump . 2.7.‘> 3.10
Red Ash steam size . 1.20(®1.35 Frt. rate 30c
Jefferson County —
Fancy steam Pratt . 1.75 2.00
Run of mine Pratt . 1.20(^1.25 1.45@1.50
Mary Lee lump . 1.40@1.50 1.80(gl.90
Black Creek —
Fancy steam lump . 1.75 2.05
Washed nut . 1.76 2.05
Washed steam . 1.35(®1.60 Frt. rate 30e
Mine run . 1.35@1.40 Frt. rate 30c
Jefferson Steam Coal —
Mine run . 1.15(31.25 Frt. rate 30c
Walker County Domestic Coal —
Carbon Hill lump . 1.75 2.15
Carbon Hill egg . 1.65 2.05
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . 1.90 2.35
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 3.00 3.30
Cahaba No. 2 lump . 2.75 8.05
Montevallo domestic prices ranging from $3.00 to $3.25,
Blacksmith coal, washed and screened, per ton, $2.00 »o
$2.25 at mines, with different rates to various points.
W. E. Beaty of McAlester, formerly president
of the defunct Dow Coal ConiDany, was in Okla¬
homa City last week. Mr. Beaty shows signs
of getting back into the wholesale game.
380
rilE BLACK I>IA3IOM)
[November 6
Cincinnati Trade.
A Vast Improvement in Industrial Condi¬
tions Has Increased Tonnage and
Advanced Coal Prices.
CiNC'i.N’NATi, Ohio, Novemlifr 4. —
Correspondence.) — W hile the past week lias been
one of beautiful Indian summer, and while at
times the temperature has been pretty high,
the trade here has not felt any dimimiation
of demand for coal, except in some few cases.
It was apparent that the dealers had made up
their minds that this is the time to prepare
for their winter trade, and they have been
insistent on buying and signing up contracts
and completing preparations for the rush that
is imminent. In a few fields some easing up
of demand for lump coal has been noted, but
the demand for other grades, especially run of
mine, has offset the slump. In fact, in some
places lump demand has been discouraged, the
demand for run of minelieing so strong that it
was more profitable to let run of mine take
the precedence.
The first easing down of demand for lump
coal was felt in the smokeless districts this
week, but contract demand was heavier and
absorbed the production. The smokeless
trade is in good shape, how'ever.
Until now the splint operator has not been
able to breathe normally, some trouble or
other confronting him. Even now a short car
supply is preventing him from reaping a har¬
vest. As a general thing demand has been
strong and steady, regardless of the weather
appearance. Delivery has been only fair, even
of contract requirements, most of the opera¬
tions being behind from one to three weeks.
Prices have been from ten to twenty-five
cents in advance over September prices and
free coal of almost every grade has disap¬
peared. Operators are still holding out of the
market and looking to delivery and car supply,
and large consumers, beginning to be uneasy,
are looking about for operators who are will¬
ing to contract to take care of their require¬
ments.
The general business situation in this district
is excellent. The financial market is very
strong now and demand for money for com¬
mercial and industrial business is rising in a
gratifying way. Workmen are, more and more,
going into employment, and the activity in
steel and iron is now gradually spreading
among other industrial plants. The stock mar¬
kets are discounting the situation six months
ahead, indicating that a business revival is here
and will continue a year at least, or until the
war is over. All this is bringing money into
the coffers of the coal man, and for the first
time in a twelve-month, he is beginning to perk
up and “get into the game.”
In the meantime the car supply, which eased
up the past week, but not to a point of relief,
is a factor of benefit to prices. The labor
supply is dwindling in almost every field. The
tonnage is shrinking, but the purse of the coal
operator is swelling with more profits. Labor
is not employed constantly and this engenders
restlessness, and the miners are shifting from
place to place looking for steady work and
finding it not, as a general thing.
Cincinnati Trade News.
C. D. Weeks of the Milwaukee Coke & Gas
Company was a visitor in the city this week.
W. M. Puckett of the Cabin Creek Consoli¬
dated Coal Company, and Quinn Morton of
the Imperial Coal Company were among the
visitors in Cincinnati Tuesday.
Among well-known coal men visiting Cin¬
cinnati this week were Col. Sam Patterson and
George Patterson of Sycamore. W. Va.; Capt.
Bud Bailey of Williamson, C. M. Gates of
Williamson, and M. Shoew, a w'ell-known
operator of the West Virginia fields.
Henry C. Geyer, sixty years of age, a coal
salesman in the employ of the Rapp Coal Min¬
ing Company of this city, was killed, and
George Rapp, president of the company, in¬
jured, but not seriously, in an automobile acci¬
dent Monday morning north of the city. Mr.
Rapp was driving the machine, when the steer¬
ing gear broke and the auto climbed a bank
and fell over backward on the occupants. Mr.
Rapp was rescued a short time later, and his
companion, who was thrown across him, was
found dead.
'Fhe White .\sh coal operators of West
Virginia had a meeting a few days ago in
Cincinnati, holding a conference over a dinner
at the Business Men’s club. The conference
related to the matter of car supply and other
matters of railroad and coal business. No defi¬
nite action was taken, all consideration of such
matters being deferred until after the rate
decision, if there should be any, is asked for
and given. It is understood that there is con¬
siderable dissatisfaction at the car situation
among operators, and it was with the intention
of voicing this the conference was held.
An important conference was held here
.Saturday in reference to the application for a
further widening of differential between Ohio
and West Virginia coals. This conference was
called by Hon. Z. Taylor Vincent of Hunting-
ton, W. Va., who is in charge of the defense
of West Virginia operators and the business
of the state in reference to the proposed appli¬
cation of the four coal carrying railroads of
West Virginia and Kentucky for a further dif¬
ferential of fifteen cents in the carrying rate of
West Virginia coal into the northwest. The
conference was held over a fine luncheon at
Sinton hotel. It was attended by ten or twelve
representative coal operators of the field af¬
fected by the proposed rate raise. Mr. Vin¬
cent explained the situation and stated that
if the proposed fifteen cents additional differ¬
ential were granted and the Ohio coal opera¬
tors were allowed the decrease of rate asked
for in Ohio, the differential between Ohio and
West Virginia coals would be the twenty-five
cents already given, plus fifteen cents proposed
by the railroads outside of Ohio, plus the five
or ten cents decrease applied for in Ohio,
making the actual differential somewhere
around sixty or sixty-five cents. The opera¬
tors decided that they would enter the fight
in Ohio in all probability. Mr. Vincent being
authorized to look into the situation and report
as to the advisability of trying to defeat the
proposed reduction in Ohio, as well as to
defeat the proposed addition to the differential
by the interstate commerce commission. Mr.
Vincent represents the West Virginia Coal
Operators’ Association, the Chamber of Com¬
merce of Huntington and a number of other
West Virginia coal associations and business
men’s organizations, and is in charge of the
details of the fight against the fifteen-cent
Iiroposition. He is aided by a number of other
eminent counsel from the various towns and
cities of West Virginia, who will take charge
of special branches of the defense, as well as
by the legal firms of Brown, Jackson & Knight
of Charleston, and Littleford, James, Ballard
& Frost of Washington, D. C. Operators
present at the Sinton hotel conference were:
C. R. Moriarty of the Cabin Creek Consoli¬
dated Coal Company; E. J. Howe, president
of the Cincinnati Coal Exchange and repre¬
sentative of the Pocahontas Fuel Company;
Thomas H. Richardson, representing the Con¬
solidation Coal Company; Kuper Hood of the
Houston Coal Company; R. A. Colter of the
C. G. Blake Company; L. M. Webb of the
Webb Fuel Company; R. H. Bartlit of the
Darby Coal Company; D. H. Jenks of the
Producers’ Coal Company; Mr. Cunningham
of Huntington; J. M. Wright of the Raleigh
Coal & Coke Company, and others; also Mr.
Guy M. Freer, manager of the Traffic Associ¬
ation of the Chamber of Commerce, Cincin¬
nati, and Mr. Vincent.
Denver Trade.
Denver, November 4. — (Special Correspond¬
ence.)— Continued warm weather in this section
for almost two weeks has resulted in a dull
market here and the snappy vitality of _ three
weeks ago has been almost completely dissipated.
At that time leading concerns were actually be¬
hind on the filling of orders and the recent
dullness has given them a good opportunity to
catch up.
Locally there seems to be a fairly steady de¬
mand for storage coal by domestic users, and
this has greatly aided the retailers. This de¬
mand also extends to country trade, but is not
so insistent.
The Trinidad and Walsenburg tonnage is lead¬
ing other districts this week, with the lignite out¬
put a close second. The Trinidad operators are
busy on steam contracts and the steel mills are
working day and night on war orders. The lig¬
nite output is going largely to fill late threshing
requirements and to supply the sugar factories,
all of which are now in full operation. Routt
county is said to be well up on back orders.
IJgTiite slack is moving slowly this week, but
better than bituminous. The supply of the latter
rather exceeds the demand. Prices remain un¬
changed.
The following prices are ruling for lignite coal,
f. o. b. mines : For Denver delivery, lump, $2.35
to $2.65 ; mine run, $1.50 to $1.65 ; slack, $1.05 to
$1.25. For points outside of Denver, lump, $2.50;
mine run, $1.55 to $1.65; slack, $1.05
Detroit Trade.
Detroit, Mich., November 1. — {.Special Cor¬
respondence.) — With the steam coal trade show¬
ing less activity than two weeks ago, there has
been little increase in the amount of business
being transacted in domestic coal .
The situation in the steam coal market is ex¬
pected to show a change for the better speedily.
With increasing activity developing in lines of
general business and among the manufacturing
establishments of the city, the shippers argue the
present lighter demand for coal cannot long
continue, as iew of the consumers have stocks
of any special magnitude.
Buying of fine coal continues more active than
the market for larger sizes. Dealers are still
able to supply sufficient fine coal to meet needs
of their customers, although this stock is less
plentiful than other coal, while shortage of rail¬
road rolling stock is growing in importance as a
factor in the situation.
Weather conditions have remained unfavorable
to extension of the domestic coal trade, warm
temperature throughout the day and only moder¬
ately cold nights making it possible for many con¬
sumers to economize on fuel or dispense entirely
with its use. Lower temperature is adding a
more frosty touch to the atmosphere this week
and may stimulate activity in domestic coal.
Retail dealers find the distribution of anthracite
is backward. The theory is advanced that some
of those who usually buy early were deterred
from doing so by lack of available funds, due to
the unsatisfactory condition of general business,
during the first part of the year and that others
have held off on placing orders because of the
warmth of the weather. The tirders coming to
shippers are described as fewer in number and
representing a lesser tonnage than usual at this
time of the year.
On the lakes the coal trade is apparently side¬
tracked by the strong demand for freighters to
move grain and iron ore down the lakes. High
rates offered wild carriers to handle grain and
increased committments of ore shippers combine
in creating a demand for as speedy dispatch as
possible in both lines, the result being that ex¬
cept for vessels under contract, little tonnage
is offered to move coal. The rate on hard coal
from Buffalo to side jiorts on Lake Michigan
was advanced from 30 to .50 cents a ton during
the week in the effort to get boats for a route
which offers little grain or ore for the return
trip.
No advance m rates
of
freight on
soft coal
has been reported yet.
except in the case of a
few small cargoes to
out
of the way
delivery
points.
Prices in the local market on mine
shipment
orders are as follows :
West Virginia Gas —
Three-quarter lump .
F. O. B.
Mines.
$1.00
F. O. B.
Detroit.
$2.40
Mine run .
.90
2.30
Slack .
.60® .75
2.00®2.15
West Virginia Splint —
Four-inch lump .
. 1.45@1.75
2.85@3.15
Two-inch lump .
. . 1.20@1.40
2.60@2.80
Three-quarter .
1.10
2.50
Mine run .
.90
2.30
Nut, pea and slack .
.55@ .65
1.95@2.05
Smokeless —
Lump and egg .
2.25
3.85
Nut .
1.75
3.36
Slack . .
. Open
Open
Mine run .
1.40
3.00
Kentucky Splint—
Lump .
3.00®3.15
Egg .
. 1.25@1.40
2.66®2.80
Nut. pea and slack .
.65
2.05
Fairmount —
Three-quarter steam lump. .
. .85® .95
t.26®3.3S
Mine run .
. .70® .80
2.10®2.*0
Slack . .
. Open
Open
Hocking Valley —
Shaker three-inch lump . .
1.60
2.75
Shaker egg and nut .
1.15
3.30
Domestic lump .
1.50
2.65
Three-quarter lump .
1.35
2.40
Mine run .
. 1.90@1.10
2.15®2.26
Nut. pea and slack .
Open
Open
Pittsburgh No. 8 —
Three-quarter lump .
1.05
2.20
Mine run .
.95
2.10
Slack .
Open
Open
Jackson Hill —
Domestic lump .
2.50
3.65
Cambridge —
Three-quarter lump .
1.20
2.53
Mine run .
1.10
2. *5
Pomeroy —
Two and three-inch lump. . .
1.60
2.76
Egg .
1.35
2.60
Slack .
Open
Open
No. 191
THE BLACK DIA3IOM)
381
Cleveland Trade.
Clevel.\nii, Ohio, November 4. — (Special Cor¬
respondence.) — Although there has been a suffi¬
cient amount of business to go around, as the
situation was expressed in one office, it has al¬
tered market conditions very little, except as it
pertains to the various slacks which are quoted
generally five cents higher than a week ago. Steam
lump has shown no change either way, and pro¬
ducers and jobbers are rather uncertain as to the
future unless there should be a change in weather
conditions that would necessitate an increase in
consumption. It is possible that the advance
in slack prices is partly due, at least, to the de¬
mand for the supply on the market to complete
a large contract of one of the Cleveland offices.
This, hov.'ever, was for a particular kind of coal,
but probably had an effect on all.
The prevailing soft weather for the past week
or more has had a demoralizing effect on do¬
mestic coals. While it is believed that the stocks
are not up to the average, dealers have failed to
take advantage of the present conditions to com¬
plete them. All grades and kinds of domestic
coal are showing the effects of this situation.
The anthracite situation was well illustrated
in a circular letter mailed to dealers this week
by John S. Van Epps, who is one of the best
posted anthracite men in the country. He states
that the stocks are 3,000,000 tons below normal
in a given territory and that some of the dealers
will find themselves short if they do not take care
of their needs soon. While the fall has been
very mild, it is hardly probable that the weather
of last winter will be duplicated later on. There
is no desire, of course, on the part of producers
to stock retailers beyond their needs, but it is
always difficult to deliver anthracite on short
order in severe weather.
It is said that lake shippers are offering a
somewhat better figure than in the past in order
to clear up surplus coal and liberate cars at the
different ports. However, the price is still low.
Little tonnage is being offered and coal is for
tlie most part going forward in contract boats.
The market for Coshocton coal this season has
been fairly satisfactory, although the weather
has interfered with the best results. Quotations
today are as follows:
F. O. B. F. O. B.
Coshocton — Mines. Cleveland.
I-ump, 4-incli screened . $1.7()@1.75 $2.4n@2.45
I'T-inch . I.fi0@l.fi5 2.3()@2.35
Kgg and nut . l..S0@1.3.5 2.00@2.p5
There is a greater demand for No. 8 coals at
the prices quoted than for some time past, but it
has not been sufficient to change the market fig¬
ures to any extent, with the exception of slack,
which is firm at five cents higher than a week ago.
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.05@1.10 $1.95@2.00
Run of mine . .95 1.85
Slack . .80 1.70
Pittsburgh slack has shown more strength than
usual the past week, and is generally quoted at
higher prices than prevailed a few days ago. No
other sizes are active on this market at the pres¬
ent time, except in the lake movement.
F. O. B. F. O. B.
Pittsburgh District — Mines. Cleveland.
Slack . $0.80@ .90 $1.80@1.90
Youghiogheny slack remains at a standstill so
far as price is concerned, without any change in
the market figures from a week ago.
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
Slack . .85 1.85
The weather for the past week has militated
against the sale of smokeless coals. While the
retailers are perhaps carrying light stocks, they
are not exerting themselves to secure supplies.
The prices remain on the lower level reached a
week ago.
F. O. B. F. O. B.
Smokeless— Mines. Cleveland.
I.ump . $2.10 $3.55
Kgg . 2.10 3.55
Run of mine . 1.30 2.75
Weather conditions have enal)led Massillon pro¬
ducers to catch up pretty well with their orders.
Otherwise there has been practically no change
in the market.
F. O. B. F. O. B.
Massillon — .Mines. Cleveland.
Bump . $2.50 $3.20
Nut . 2.50 3.20
Slack . .90 1.60
While Cambridge slack has been in fair de¬
mand, the reported quotation is about the same
as last week, and there has been no change
whatever in the larger sizes.
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
I'hree-nuarters . $1.10 $2.00
Run of mine . 1.00 1.90
Slack . .00 1.80
There has been no particularly active movement
in Goshen coals, with the exception of slack,
which has held its own with the other slacks in
the market.
F. O. B. F. O. B.
Coshen — Mines. Cleveland.
Slack . 1.60@1.65
Fairmont slack, while but little of it is being re¬
ceived in this market, because of the continued
demand from the east, quoted at the same fig¬
ures it commanded a week ago.
F. O. B. F. (X B.
Fairmont — ■ Mines. Cleveland.
Slack . 1.90
There has been little change in the situation
as pertains to Kentucky coals.
F. (). B. F. O. B.
Kentucky — Mines. Cleveland.
4-incb block.... . $1.90^2.00 $3.15@3.25
Cleveland News and Personals.
George G. Rowland of the Richland Coal Com¬
pany, Wheeling, W. Va., was in the city Wednes¬
day.
C. W. Troll of the Troll Coal Mining Com¬
pany has returned from St. Clairsville, where he
spent the past month in overseeing preparations
for clearing up the second of the company’s
tiiree mines for operation.
Capt. J. M. Drake of the Drake Coal Company
left Monday for his winter home in the Isle of
Pines. Captain Drake for the past several years
has spent his winters on the island, where he
owns eonsiderable property.
Virgil .). Terrill, former state senator, was de¬
feated for municipal judge in Cleveland. He
opposed the amendment of the coal screen bill
last winter and the coal colony here was solid
in opposition to his election.
li. F. Alills, Cleveland sales agent of the Pitts¬
burgh & Westmoreland Coal Company, is a splen¬
did codl man, but he met with hot competition
in his race for mayor in Lakewood and finally
left the honors with the present incumbent. Mr.
Aiill.s has developed into a good speaker and con¬
ducted liis campaign like a veteran.
What is known as the Barber franchise was
approved by the voters at the election Tuesday.
This gives the Cleveland, Canton & Akron Ter¬
minal Railroad Company a right to construct a
four-track subway under East Fifty-fifth street,
which will give all railroads entering the city
from the south and southeast a route through
the city to the lake front, where the company
is planning to erect a large coal loading plant
and grain elevator. So far, all freight boats have
been compelled to dock in the Cuyahoga river
and railroads often found difficulty in getting coal
lo tlie loading plants. This will lie a great im¬
provement. Ohio C. Barber, head of the great
match manufacturing business at Barberton, Ohio,
is the president of the company.
Indianapolis Trade.
Indianapolis, Ind., November 4. — (Special
Correspondence.) — Sensitive to weather condi¬
tions, the coal trade in Indiana has suffered dur¬
ing the last few days. The demand for domes¬
tic call has fallen off perceptibly. Many opera¬
tors report that retailers are countermanding or¬
ders for immediate delivery. The operators have
lieen behind in their orders for domestic, as the
retailers had been making strong demands on
them. However, the weather has favored the
consumer during the past few days, and the con¬
sumption of domestic coal has fallen off. Most
of the mines are being operated as most of the
mining companies were behind in their orders
when the warm weather arrived.
The demand for steam coal is about the same
as it was last month. It is fairly good, but not
what it is reputed to be or ought to be for this
time of the year. Some of the operators and
jobbers are still inclined to be pessimistic about
business conditions, doubting seriously whether
the much talked-of boom is upon us or is about
to come. There is a lietter tone to all lines of
business as compared to this time a year ago or
even six months ago, but some shrewd mercantile
business men saying they are getting by in good
shape because they are operating on a less ex¬
pensive scale. It is a fact that there are more
empty houses here than there have been for a
long time, which naturally militates against a
steady and strong demand for domestic coal.
Mine run is still selling from $1.00 to $1.30 a
ton at the mines, according to the grade. As
high as seventy and sevent'^-five cents a ton is
being paid for best screenings at the mines, but
the demand is not abnormal. Best domestic brings
.IH.OO at the mines, but most of the sales range
from $1.40 to $1.50. The following prices are
being quoted by the wholesalers :
K. O. B.
F'. O. B.
Indiana—
Mines. I
ndianapolis.
Mine run. No. 4 .
. . .$1.10@1.20
$1.60@1.60
Mine run, Nos, 5 and .
. . . 1.05@1,15
1.55@1.65
Nut .
1.70@1.80
Kgg .
1.80@1.90
H 4 -inch steam lump .
1.75@1.85
No. 4 screenings .
1.20@1.25
Nos. 5 and 0 screenings .
. . , .55 @ .65
1.05@1.15
2j4-inch domestic No. 4 .
. . . 1.50@1.55
2.00 @2.05
No. 4 domestic .
... 1.60@1.65
2.10@2.15
Nos. 5 and 6 domestic .
... ].40@1.60
1.90@2.10
Brazil block domestic .
... 2.25@2.5n
2.75@2.50
No. 1 washed coal .
1.75
2.2.)
No, 2 washed coal .
1.6.')
2.15
Southern Indiana Field —
. . . 1.05@ 1.10
Domestic lump .
_ 1.40@].50
The retailers are quoting the following prices
per ton: Linton No. 4 forked, $3.25; Indiana
lump forked, $3.00 ; Indiana lump and egg,
screened, $3.75 ; Kanawha lump, forked, $4.25 ;
Ohio Hocking, lump, $4.25 ; Ohio Hocking, wash
egg, $4.50 ; Kentucky lump, $4.50 ; Ohio Jackson
lump, forked, $5.00; Blossburg smithing, $5.50;
Cannel lump, $6.00 ; Pocahontas forked, lump,
$6.00 ; Pocahontas shoveled lump, $5.50 ; Pocahon¬
tas mine run, $4.50 ; Pocahontas nut and slack,
$3.75 ; anthracite, chestnut, $8.25 ; anthracite, stove
and egg, $8.00 ; anthracite, grate, $7.75 ; Con-
nellsville coke, $6.00 ; Indianapolis by-product
coke (all sizes), $6.00. Extra delivery charges:
Bags, fifty cents a ton extra, ground floor, or
dumped in cellar ; bags, seventy-five cents a ton
extra, carried into cellar ; charge for chute or
wheelbarrow, twenty-five cents a ton ; coke, bags,
sixty cents ; liags in cellar, eighty cents.
St. Louis Trade.
St. Louis, Mo., November 4. — (Special Corre¬
spondence.) — Business is quite dull owing to the
unusually warm weather, and nothing much can
be expected from the domestic trade until a
weather change comes. Operators on the whole
are maintaining prices and curtailing outputs to
meet the situation, and there is really nothing
else to do but to sit tight until the weather breaks.
It is remarkable how well the mines have been
able to run, considering the weather.
Industrial conditions are undoubtedly much
better and improving. Steam demand and rail¬
road demand is much heavier than for several
years.
Screenings and fine coals are up from ten to
fifteen cents per ton and advancing. Number
two nut is very strong.
Standard mines are on the whole doing better
right now than the high-grade mines in souhtern
Illinois.
Current prices are as follows :
Standard Coal — Mine.
6-inch lump . $1.30
0x3-inch egg . 1.25
2-inch lump . 1.05
Steam egg . 90
No. 1 nut . 1.15
No. 2 nut . 80
Mine run . 85
Screenings . 40
F. O. B.
St. Louis.
$1.87J4
1.82J4
1.62
1.47J4
1.72
1.37J4
1.42J4
.97^
The demand for Staunton locally is off a lit¬
tle for domestic, but the big demand which is
for heating and apartment contracts is still
ahead.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.50 $2.07^
2-inch lump . 1.25 1.82^5
Screenings . 40 .97J4
Williamson county coals are not moving quite
as freely as they were, and some operators are
curtailing outputs and a few are cutting the
price to keep moving.
F. 9. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.40@1.75 $2.02;4 @2.47;/^
3.x2-inch nut . 1.20@1.75 1.92^2 @2.47^2
Screenings . .50 1.22^
In Franklin county operators are holding the
price rigidly and are curtailing the outputs some¬
what to meet the market demands.
6-inch lump, egg or nut
No. 2 stove .
Screenings .
V. (). r*. F. (). IF
Mine. St. Louis.
.$1.75 $2.47^2
. 1.50 2.22H
. .60 1.32J4
-Anthracite is moving well in the country, btit
is dull locally.
Anthracite — F. 0. B. St. Louis.
Chestnut . . $7.55
Stove or egg . 7,30
Grate . 7.05
F. O. B. F. O. B.
Mine. St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. (). B. St. Louis.
Gas house coke . $4.25
By-product coke (all sizes) . 4.50
The prices on Illinois soft coal, f. o. b. East St. Louis.
Madison, Venice or Granite City, 111., are 20 cents lower
than the above (jiiotcd St. Louis prices.
382
THE EEAC'K DIAMONIX
[November 6
New York Trade.
Mild Weather Dulls Anthracite Demand
— Bad Car Supply for Bitu¬
minous Producers.
Office of The Black Diamond,
New York, November 4.
'I’he antliracite trade lias passed through a
week of mild weather, and consequently there
has l)een less activity in the retail trade.
Distribution to consumers has been in fairly
good volume, but retailers have complained
that buying on the part of householders lacked
snap, and consequently they have not been
making inroads into their stocks that they
should be doing at this season.
On the other hand, most of the producers
liave had ample orders to keep their mines
going on full time. The all-rail trade has
lieen much better that the tidewater trade, and
also, there is a good call for coal for ship¬
ments west via the Lakes, and considerable
all-rail coal for western destination is also go¬
ing forward. The movement of the latter is
materially lessened, due to the lack of proper
equipment.
From this time on, it is appreciated that
the distribution of anthracite will be largely
hampered by the lack of cars and locomotives.
While the anthracite originating railroads are
lielieved to be in much better shape so far
as equipment and locomotives gp, than are
the connecting lines, these lines are just now
being taxed by heavy shipments of war muni¬
tions, and there is a great deal of conges¬
tion principally at junctions and tidewater
points. Also, coal cars going on the connect¬
ing lines, do not meet with the prompt trans¬
portation that was the rule up to several
weeks ago. No doubt from this time on a
great many c^rs on 'the anthracite roads
that will be detained on the connecting lines
for many days beyond the usual time of de¬
tention, and these delays will reflect in a
short car supply at the mines.
Practically all of the producers are getting
full circular prices on stove, egg, chestnut
and pea. These sizes are moving pretty
evenly, and concessions on these coals, even
by individuals are rare. Such concesions as
come about, are usually on odd lots that are
at tidewater points, that are left over after
cargoes are still out and demurrage is ac¬
cruing. To avoid unnecessary demurrage
charges, sellers sometimes think that it is
expedient to accept concessions.
In the steam sizes, there has developed a
little weakness in rice coal at tidewater, and
some sales are said to have been within the
past week at .$1.90 per ton. Good rice coal
is short at the upper ports, but the supply
of inferior rice at the lower ports seems to
be ample for all requirements at the moment.
No. 1 buckwheat and barley continue strong,
while pea coal is selling very near the full
circular price.
The statement of shipments of anthracite
for the month of October will be made public
later in the week. Tidewater stocks are be¬
lieved to have decreased.
Upper Lower
Ports. Ports.
Rroken . $5.10 $L00
Kgg . 5.35 5.25
Stove . 5.35 5.25
Chestnut . 5.60 5.50
Pea . 3.55 3.45
Special grades of red ash and other high-
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
Spot prices in individual coals at lower
ports are about as follows;
Egg . $5.05 and up
.Stove . 5.20 and up
Nut . 5.20 and up
Pea . 3.25 and up
P.uck . 2.30 and up
Pice . 2.00 and up
P)arley . 1.75 and up
The Bituminous Situation.
Bituminous production is being restricted in
most fields by a shortage of cars. Moreover,
there is complaint on no few of the bituminous
carrying roads that the movement is very slow,
once coal is loaded. These two agencies are
working towards a service shortage of coal
that may develop most any day now.
Operators, who are analyzing the produc¬
tion end of the business very closely now,
find it impossible to increase production no
matter how urgent may be their require¬
ments for tonnage. Either labor is scarce or
cars are scarce. In many instances there is a
shortage of both. I'n many cases, operators
cannot take on any spot business, no matter
how fancy the price may seem.
On the price question, mine prices are just
as stiff as they were a week ago, although the
spot demand cannot be said to have improved.
As has been stated before in these columns,
the principal consumers of steam coals seem
to be pretty well covered by contracts. Many
of these are made direct with the operating
companies. No small tonnage is represented
by the middle house, some of whom in turn
protect themselves by contracting in turn with
the producing companies. On the other hand,
there are some middle houses that scalp the
market. These are not at the moment find¬
ing conditions to their liking.
At New York harbor ports, there is no un¬
usual accumulation coal. Spot lots of the
choice grades are in very light offering. Me¬
dium grades are also short, while the inferior
coals are so scarce that they command around
$3.70 to $2.75 f. o. b. harbor ports. Good
grades of Pennsylvania sell at $3.80 to $2.85;
with fancy grades commanding from $2.90 to
$3.10.
The Vessel Situation.
Coastwise rates are some firmer. There has
been a good advance in rates between Hamp¬
ton Roads and Boston. Rates from Baltimore
and Philadelphia to Boston and sound points,
are also firmer. From New York to sound
points rates are also stronger.
Off shore rates are in many instances so
high as to be prohibitive, consequently ex¬
ports of coal have been materially reduced.
We quote current rates on freight as fol¬
lows :
From Hampton Roads to Boston, eighty-
five cents to $1 is about the range; to Port¬
land and points east of Boston, from ninety-
five cents to $1.10. To sound points, eighty
to eighty-five cents. From Philadelphia to
New England points, about five cents under
the Hampton Roads rates.
From New York to sound points as follows:
Bridgeport, thirty-five cents; New Haven,
forty-five cents; Providence, fifty cents; New
Bedford, fifty-five cents. To Boston, around
cape, sixty to seventy cents; through canal,
seventy-five to eighty cents. Harbor rates
twenty to twenty-five cents.
Current quotations on bituminous coal in
spot lots are:
Somerset County —
Best grades .
F. O. B.
Harbor.
. . .$2.90
F. O. B.
Mines.
$1.40
Ordinary .
1.20
Medium grades .
. . . 2.65
1.15
Cambria County —
Best Miller vein .
... 3.00
1.45
Medium grades .
1.25
Cheaper grades .
1.15
Clearfield County —
Best grade .
... 3.00
1.35
Ordinary grades .
1.15
Indiana County —
Best grade .
1.25
Medium grade .
. . . 2.70
1.15
Maryland —
Georges Creek big vein...
. . . 3.15
1.65
West Virginia —
Ordinary grades .
. . . 2.55
1.00
Best gas, -J^-inch lump. . . .
Best grade, run of mine..
. . . 2.90
1.30
. . . 2.70
.‘)5
Gas slack .
.75@1.10
New York
Trade
Briefs
E. M. Sanders of
C.
H.
Sprague
& Son
Company of Boston, was
in New York several
days this week.
Jesse L. Eddy of Dickson & Eddy, No. 17
Battery place, has gone to Hot Springs, Va.,
for a two weeks’ stay.
George F. Glitter of Hartwell, Lester &
Glitter, Inc., of No. 1 Broadway, visited the
anthracite regions on Monday.
E. E. White of Glen White, W. Va., presi¬
dent of the E. E. White Coal Mining Com¬
pany, was a New York visitor this week.
P'rank W. Smith, a salesman connected with
the New York office of H. H. Lineaweaver
& Co., is shortly to join the benedict class.
Unless closed sooner by the ice, the Erie,
Champlain, Oswego and Black Rock canals,
New York, will be closed to navigation at
noon on November 30.
W. F. Meyers, for the past ten years, fuel
inspector of the New Haven Railroad, with
headquarters in New York, has tendered his
resignation to take effect on the first.
The Reading Company has contracted with
the Palmer Shipyard Company of Noank,
Conn., for the cons'^ruction of several addi¬
tional barges for the Philadelphia and New
England coal carrying trade.
Anthracite shippers who send considerable
coal east to sound points and around the
Cape to points east, report a scarcity of boats
for this purpose. Harbor boats are also scarce,
due to the heavy demand for all classes of
boats in New York harbor for grain and mer¬
chandise purposes.
h'ifteen salesmen of the Weston Dodson
& Co., Inc., were entertained on last Satur¬
day, by W. R. Coyle, general sales manager,
at the Bethlehem Club at Bethlehem, Pa. The
salesmen from the various branch offices were
in attendance. In the aftermoon the iparty
witnessed a football game at the Lehigh Uni¬
versity.
Charles Heyl, representing J. Hudson, a
wholesale coal merchant of Bordeaux, France,
is now on his second visit to America this
year. Mr. Heyl reports that the coal situation
in Prance is much easier now than when he
was over in the spring. He reports now, a
very pressing demand on the part of French
manufacturers for steel and iron suitable for
making munitions. ,
Ihe Brothers Valley Coal Company of No.
90 West street, New York, have recently
opened up a new mine in Somerset county, ad¬
joining their other operations. This mine is
known as Penmar No. 4, from which the
Miller or “B” vein coal is being taken. So
far this coal is showing up true to the high
standard of this well known seam. The com¬
pany, owing to numerous improvements to
its plants made the past few years, is giving
careful preparation, which insures to their
customers a highly prepared product.
The Pittston (Pa.) Gazette states that Weston
Dodson & Co., Inc., of Bethlehem, Pa,, who
are large operators in anthracite throughout
the Schuylkill region, have just placed an or¬
der for the construction of forty-one residences
in East Bethlehem, Pa. It is said that this
company owns a large tract of land in East
Bethlehem, and has this plotted out in such
a way that when built up will result in mak¬
ing this section one of grea civic beauty.
The Bethlehem Steel Works are said to be
within ten minutes walk from this property.
The contract involves the expenditure of
$100,000.
D. A. Thomas, the Welsh coal operator,
who is so well known to Americans by this
time, and who has been in this country since
the first of July as a representative of David
Llyod-George, England’s Minister of Muni¬
tions, returned from Ottawa, Canada, on Mon¬
day, where he has been making his head¬
quarters for some time past, and has just un¬
dergone a slight operation for a nose trouble
at a private hospital in New York city. It
is understood that Mr. Thomas’ duties in this
country in regards to supervision of munitions
purposes, are now largely routined, and that
he will shortly return to England after placing
competent men in charge of several of the
bureaus that he has established in the United
States and Canada.
Recently a dozen New York business men
have formed a new society. This society is
to be known as “The Delectable Society of
the Dotards of 1848’’ — and each dozen of men
who have made themselves prominent in the
business or the professional world, are to be
its charter members. These men, all of
whom are prominent figures in their respective
businesses, are all known to be sturdy, clear¬
eyed and light-hearted at their age of sixty-
seven. This society is going to give a din¬
ner soon to celebrate the year in which the
members were born. Edward J. Berwind,
president of the Berwind-White Coal Adining
Company, and interested very prominently in
many of the large railroads, banking and other
industrial concerns, is a member of the so¬
ciety, and has been assigned the title of “Offi¬
cial Miner of the Club.” Mr. Berwind was
born on June 17, 1848.
Few New England retail dealers or large con¬
sumers attached much significance to the decision
recently handed down by the Pennsylvania su¬
preme court to the effect that the tax imposed
on coal mined in that state was unconstitutional.
The general belief here is that the state will
appeal to the United States supreme court, and
that rebates are many, many months away.
No. 19]
383
THE BLACK DIAMOND.
Philadelphia Trade.
While Anthracite Moves Slowly Because
the Weather Is Warm, Bituminous
Demand Is Booming.
Office of The Biack Diamond,
1400 Land Title Building,
Philadelphia, November 4.
When the figures accumulated by the Bureau
of Anthracite Statistics at Wilkes-Barre are
made public some time next week, it will be seen
that the production for the month of October in
the hard coal regions was about 6,ir)0,000 tons as
against a production of 0,044,470 tons for the
corresponding period in 1914. This decrease of
fully a half million tons, brings the shortage up
to a total of three million so far for the year
as against the amount that was shipped in 1914.
It is said by some operators that a million and
a half of tire shortage could be made up were
it possible to put on sufficient steam to bring the
production up to the maximum. November and
December, however, are so sprinkled with holi¬
days that the miners will demand and take that
this is highly improbable and impossible. In
fact, there are some of the belief that the entry
of the New Year will see the shortage heightened
even, rather than cut down.
While this does not mean any crimp for the
immedate future, there are dealers who can see
what it spells for the future. The nearer draws
April 1st when the labor difficulties must be ad¬
justed the heavier demand will be for coal that
can be moved. The elimination of the stocks
in storage has been one of the questions that has
given forth many angles. This year’s decrease
in production, the attitude of labor and a hard,
frosty winter, may solve the problem sooner than
some folk think.
Speaking of the weather, that is the queen bee
that governs the local situation. The demand
for pea coal, as was anticipated in this column
some time ago, has been sufficient that the com¬
panies have placed the price at $2.25 a ton. While
the circular shows $2.50 as the range sales
since last April have been made on a $2 to $2.10
basis. The local demand has fluctuated with the
cool and the warmer days. Snappy weather,
while this is being written, has sent in many
orders from the retailers to the middle and
producing houses.
Steam sizes, from buckwheat No. 1 on down,
have been in better demand and are really the
leaders in the market. Office buildings and apart¬
ment houses have been a material factor in this
flurry. Nut size coal also has been well to the
forefront and some of the houses have been
kept on the jump to fill requirements. Other than
the change noted in the price of pea coal, the
prices of the circular still obtain. These are as
follows, as shown by the Philadelphia and Read¬
ing Coal and Iron Company’s list:
Locust
Mountain Lorberry
Mahanoy and and Lyk’s
and Schuylkill Schuylkill Valley
Shenan- White lied Red
Sizes — doah. Ash. Shamokin. Ash. Ash.
Lump . s^3.50 $3.50 .... .... ....
Steamboat . 3.50 3,50 .... .... ....
I’roken ....... 3.50 3.50 .... $3.75 $4.10
Egg . 3.75 3.75 $3.75 4.00 4.35
Stove . 4.00 4.00 4.00 4.2.5 4.60
Chestnut . 4.15 4.15 4.15 4.25 4.60
Pea . 2.50 2.50 2.50 2.60 2.75
Ruckwheat .... 1.50 1.50 1.50 1.60^ 2.35
The Bituminous Situation.
In the soft coal lines this has become strictly
a “broker’s market.” What has been known as
the “cheap coals” have been steadily rising in
■price until they are now in the range of those
that were bringing twenty to thirty cents higher
a matter of two months ago. Contract require¬
ments have been the cause of this. When the
cheap coals reach a price that the contracting
houses can no longer take them over and make
a profit on them, it is expected that the consumer
will have to do his own buying and this new'
factor will send prices to a higher level. The
very fact that salesmen find it as hard to sell
coal as before is indicative that the contracts
that were entered into last spring are being lived
up to. Eliminate the cheap coals and the con¬
sumers will find that the clause in the contract
referring to “car shortage” will be put into
operation in more instances than one.
Significant is the sales that have been made of
Western Maryland coals around $1.20 within the
week. These were spot sales and little can even
be had for November shipments lower than this.
West Virginia offerings also took to aeroplaning.
Quotations on slack and mine run are at an
even dollar and $1.15 is asked for %-inch screened
lump.
Greensburg coals are still out of the market
and the operators under contract to the Penn-
s\lvania railroad for storage coals are bending
every effort to get their coal into the piles before
the middle of the month. Car shortage in the
Somerset field has moved the prices on these
coals upward. Best is quoted at $1.30 to $1.50,
contingent on an excess supply of cars over con¬
tract requirements, medium $1.15 to $1.25 and
ordinary $1.10. Sales at the piers on ordinary
are a nickel to a dime higher.
An indication of advance in the price of high-
class coal w'as shown this week on the quotations
of Georges Creek, Big Vein. The usual price
on this has been $1.70, but inquiries were met
with a price of $1.85 with little to offer.
At the piers there seems to be a free quantity
of coal to offer. Bunker business has been up
to the standard while the exports for the past
w'eek have fallen off quite a little.
Change of Labor Aspect.
Philadelphia, November 3. — The following
news despatch from Hazleton indicates to those
who have been keeping a weather eye on the
labor conditions in the regions that there will
be a new angle to be considered in the settle¬
ment to be made about April 1st. Just what has
to be reckoned with from the steam shovelers
has not been quite figured out :
“The appointment of Enoch Howells, a pioneer
steam shovel engineer of Hazleton, as organizer
of the United Mine Workers by International
President John P. White, marks the taking over
of the Steam Shovelmen’s Lmion by the miners’
organization.”
Philadelphia News Notes.
Mr. Peacock of Peacock Campbell & Kinzer
was away on a trip to the mines this week.
Frank Honan, vice-president of the Skeele
Coal Company of New York was a mid-week
visitor.
Mr. Chestnut of the Crescent Coal Company
of New York was one of the trade visitors of
the early week.
Mr. H. K. Cortright of the Cortright Coal
Company spent the early part of the week at
the company’s mines at Beaverdale, Pa.
John Thomas, Jr., of the Cramer Coal, Coke
and Stone Company of Johnstown, Pa., was
among those “in our midst” during the week.
The following has appeared among the judg¬
ments awarded in the local courts : “Old Lick
Run Coal & Coke Company to Mary C. Dothard,
for want of an answer $181.02.”
William J. Faux of the Logan Coal Company,
who has been ill at his home for the past two
weeks, is progressing nicely and expects to be
about as usual within the next few days.
Election day, Tuesday, was a legal holiday in
this neck of the woods, and was a general dis¬
ruption to business. Some of the coal offices
kept open until noon and then gave it up as a
bad job.
Howard Yeager of Patton, Pa., who operates
the Beaver Coal Company and other producing
properties, looked over trade conditions through
the Philadelphia periscope during the fore part
of the week.
There has been a general absence of trade
visitors from the producing districts during the
past few weeks. “What’s the use of coming to
trade centers,” said one operator, “when the mid¬
dle and jobbing houses are hunting you up to
give you orders ?”
G. M. D. Cam of George Bush & Son of
Wilmington, Del., who was in town Tuesday
said that the coal business about that city never
was better. “The du Pont plants and the im¬
mense powder factories across the river have
given us an era of prosperity that never has
l)een equalled about Wilmington,” he said.
Within the ne.xt couple of weeks there will
be a meeting of the sentries of the Philadel¬
phia breaker of the Order Ko-Koal to arrange
for the annual meeting of the local association.
At this time it is expected that these trustees of
the organization here will take direct action
on the question of joining out with the National
Coal Association or not.
The George B. Newton Coal Company, ihe
big retail concern of this city, passed its usual
half-yearly dividend of three and one-half per
cent due the first of 'this month. In explana¬
tion, it vyas declared to the stockholders that
poor business conditions of the preceding six
months had been responsible for the action.
This dividend is paid on $1,750,000 of first pre¬
ferred stock. The annual meeting of the com-
panv will be held on the 22nd inst.
Thursday night there will be a meeting of the
Select and Common Councils of this city at
which finances will be one of the main topics of
discussion. Most of the waterworks stations are
on a hand-to-mouth basis for a coal supply be¬
cause councils have refused to grant money to
take care of payments for coal supplied. All is
speculation at this writing, though the main ven¬
ture is that councils will appropriate money to
pay for the coal now that the Republican crowd
have been elected.
The consumer who yells for full contract re¬
quirements and some more is about as popular
with the coal men here at this time as an end-
seat hog in a street car. Several of the dealers
discussing the situation have stated that they
have men on their books who have filled up on
coal and then politely stopped shipments- for a
week or even longer. The swing of business
has been such that these persons have been
satiated up to the present time. However, there
is still a hard, cold winter to be reckoned with
and such provoking customers may have cause
yet to reckon with conditions where the coal man
can even things up.
Buffalo Trade.
Buffalo, N. Y., November 4. — (Special Cor¬
respondence.) — The movement of anthracite by-
lake from this port was on a smaller scale dur¬
ing October than for the same month last year.
The shipments were 521,171 tons, as compared
with 538,250. For this lake season to November
1st the shipments were 3,312,246 tons, against
3,69.5,031 in the same period of last year. This
is a decline of about thirteen per cent. In all
probability the year will close with less shipments
than those of 1914. For the past week the ship¬
ments were 114,600 tons, as follows: Duluth-
Superior, 40,100 tons; Milwaukee, 31,500; Chi¬
cago, 26,200; Waukegan, 8,200; Escanaba 3,300;
I'ort William, 2,600; Green Bay, 1,500; Racine,
1,200. Alt present a large proportion of the ves¬
sels are sailing from here light.
The anthracite demand is not very heavy at
present, but quite a large quantity of coal is
being sold and the different grades are all getting
a fair share of the business. Chestnut has been
more active during the past two or three weeks
than for some time, and the country dealers are
now reporting a pretty good demand for it.
The shortage of cars is still in evidence, and
this makes deliveries considerably slower than
usual. Many dealers have a fair amount of coat
still On hand, and no rush from the consumers
is expected until colder weather arrives. The
weather has been quite favorable to the re¬
tailer lately and this has helped business to quite
an e.xtent.
In the bituminous trade everybody reports that
the rnarket is strong, but that the, demand is in¬
creasing but slowly. Prices have shown an ad¬
vance, but this is due largely to the fact that cars
and labor are scarcer than usual. No large vol¬
ume of coal is being ordered, and some shippers
say they have seen no improvement in trade
during the past two or three weeks. There is,
however, a great improvement over summer con¬
ditions in sales as well as prices. The Canadian
market is slowly improving and there is also a
better demand from the east. But sellers re¬
member former seasons when business was much
better than it is at present.
The coke market is stronger than for a long
time and producers are not inclined to make
quotations on stock coke without a special re¬
quest. There is but little difference between
stock coke prices and those for 48-hour furnace
and as high as $4.15 has lately been paid for
each in this market. Foundry coke has sold
latel\- up to $5.
Buffalo Trade Briefs.
Harry Rogers, of St. Catharines, Out., and Wal¬
lace Dougherty, of Oswego, were late visitors
to the anthracite trade here.
George P. Cronk, general manager of the
Pennsy Coal Company, was still reported ser¬
iously ill this week at his home at h'ranklin,
Pa.
p-riends of Stewart H. Stanton, of the sales
force of the Richland Coal Company, regret to
learn of the sudden death of his wife, following
an ni)eration last week.
384
THE BEACK DIAMOND
[Noveml)er 6
New England Trade
Boston, November 4. — {Special Correspond¬
ence.) — The feature of the New En.gland coal
market during the past week was the announce¬
ment by the Darrow-AIann Company of a further
reduction of ten cents per ton on standard grades
of New River and Pocahontas for delivery be¬
ginning April 1, next. It was just about a month
;igo that the same concern threw a bomb into
the trade in the form of $3.60 per ton for next
season’s coals. The trade had not recovered
from the first shock, and the second has been
thorou.ghly demoralizing. 'I'he new price of $3.50
per ton, delivered at Mystic Wharf, means that
competitors must figure on a forty-five cent water
rate from Hampton Roads ports to Boston, which
is an impossibility for the smaller concerns.
The New England Coal & Coke Company and
the Pocahantas Coal Company of Portland are
said to have signified their willingness to meet
new price conditions, but they have not named
any prices, nor have any of the other large New
En.gland bituminous concerns issued circulars on
the subject. Everybody, to use a trade expres¬
sion, is “sitting tight.” The Darrow-Mann Com¬
pany oflficials will not comment on the situation ;
they simply refer everybody to their last circu¬
lar. But gossip has it that there will be further
reductions announced.
Bituminous operators are inclined to look upon
the present price-war as a purely New England
affair, but the most reliable authorities in Boston
believe that in the end it will influence the entire
bituminous trade of the United States. There is
one phase of the situation that many persons are
likely to overlook and that is that the firms en-
ga.ged in the price-war are already beginning
to make overtures to operators with a view to
securing an adequate supply of bituminous to
insure the resumption of the battle. Operators,
to insure their own safety, are no doubt insist¬
ing upon getting the very best terms when sign¬
ing contracts. Local firms, in making contracts
for next season’s deliveries, are inserting a clause
which gives the consumer the benefit of any
further price decline that may be made in the
future. The clause is an open confession that
the end is not in sight yet.
The movement of bituminous from southern
ports to New England during the past week has
not been up to normal, yet an improvement in
the contract demand, particularly the all-rail, is
noted by most local firms. Supplies at Hampton
Roads ports continue far in excess of the de¬
mand, and for that reason there are some ship¬
pers who are willing to shade the official $2.85
f. o. b. price in order to secure contracts. There
is no improvement in the spot New River and
Pocahontas at Mystic Wharf and prices there are
still unsettled at $3.68 to $3.75 per ton on cars.
Pennsylvania bituminous is a shade firmer, espe¬
cially on the poorer grades, as a result of in¬
creased purchases by the large railroads of the
country. They are now quoted on a basis of
$4.05 to $1.50 on cars at the mines.
-Although the weather continues unseasonably
warm, the demand for anthracite holds up re¬
markably well. It is quite certain, however, that
the official receipts for October as issued by the
Boston Chamber of Commerce, will be disappoint¬
ing as compared with the same month last year.
The figures should be available before another
week passes. October bookings were pretty well
cleaned up, so comparatively little coal was car¬
ried over into November. The demand today
runs very langely to stove, the supply of which
is not abundant. Most wholesale houses try to
induce customers to take egg and nut when order¬
ing stove, but trade conditions have been such
that such buying is not forced. Egg seems to be
the most plentiful of prepared sizes. Pea coal
is in better demand and very firm at $4.05 per
ton alongside Boston Harbor. Stove and egg are
$5.85 and nut $6.10, while at Mystic Wharf, stove
and egg are $6.20 and nut $6.45. Buckwheats
are arriving more freely, but everything is sold
well ahead and the market for them is in an ex¬
tremely healthy condition. In fact few dealers
care to make new contracts for them. No. 3
buckwheats are selling on a basis of $1.80 per
ton New York, No. 2 at $2.30, No. 1 at $2.80,
and birdsegg at $2 per ton.
The anthracite freight rate market is firm and
unchanged on a basis of fiftv to fifty-five cents
per ton from New York to Boston. The south¬
ern freight rate market, on the other hand, is
firmer on a basis of eighty-five cents to $1 per
ton from Hampton Roads ports to Boston. The
six masted schooner, Edward J. Lawrence, one
of the J. S. Winslow & Co. fleet, of Boston, re¬
cently sailed from Norfolk with 5,000 tons of
coal for Barcelona, Spain. Owing to the scarcity
of tonnage space the owners received $52,500 for
the charter. The five masted schooner, Harwood
Palmer, also of Boston, has been chartered for
$25,000, to carry 4,000 tons of coal from Nor¬
folk to Lisbon, Portugal. The steamer, Stephen
R. Jones, now building at Newport News for
Crowell & Thurlow of Boston, has been char¬
tered at the rate of $30,000 per month, but the
boat will not be ready for delivery before the
middle of this month. Space rates from Hamp¬
ton Roads ports to Italy average around 70 shil¬
lings, as compared with 1 1 or 12 shillings in nor¬
mal years. It is little wonder then, that the New
En.gland freight rate market continues on its
present level.
Baltimore Trade.
Baltimore, Md., November 4. — (Special Cor¬
respondence.) — The situation that faces the coal
man here and elsewhere is the most complex
that has come to perplex the trade for many
months. Orders are now pouring into every coal
]Moducing or distributing agency, and even those
who have unattached fuel cannot take advantage
of the revival of industrial, railroad and other
demand for coal, because they cannot get roll¬
ing stock in which to move their products.
in the Fairmont region the past week the sup¬
ply in proportion to requirements dropped at
times to less than forty per cent and seldom
ran over sixty per cent of needs, so that the
week did not show much more than a fifty per
cent supply. In the Somerset and other regions
of interest to coal men here, it ran somewhat
better, hut far below the requirements of the
trade. The result was that still more coal pro¬
ducing concerns, which have fallen back even on
their urgent contract supply needs, have with¬
drawn from sales in the open market. Few
coals were offering in any quality, and most of
those still available were of the less desirable
class.
Prices under such conditions were rather hard
to set. Surplusages that arose from time to
time at tide or other terminal points went to the
trade fairly reasonably when general conditions
were considered. Prices to the trade were about
as follows, where sales
were made at
all;
F. O. B.
F. 0. B.
F'ainnont —
Mines.
Baltimore.
Three-(|uarter .
$2.48@2.53
Kun of mine .
. .1)5
2.38
Slack .
. 1.00
2.43
Somerset —
Best .
. 1.4.')
2.63
Good .
. 1.2.')
2.43
W. M. R. R.—
Freeport .
. 1 10
2.28
F. R. R.—
Best South Fork .
. 1.40
2.58
Miller vein .
. 1.30
2.48
Ordinary .
. 1.10
If vessel bottoms were available here just now
the export figures would show a healthy increase,
despite trouble in getting cars generally, as the
railroads are frequently giving right of way to
such movement. The grain trade here, however,
l)y liberal charter rates, is absorbing most of
the unattached vessel tonnage that reports. There
was a small increase in the foreign coal move¬
ment the past week, despite this condition. I)ur-
in.g the six-day working period a total of more
than 37,000 tons was loaded for export.
Anthracite men are quite busy for the most
part. The many empty cellars over the city
and suburbs, a larger proportion than in years
past apparently, are beginning to call heavily for
siqiplifs. The first real winter weather should
see a scramble, and then the yard supplies may
not be always sufficient to meet demands if cars
retnain short of supply.
Duluth Trade.
Duluth, Minn., November 4. — (Special Cor¬
respondence.) — What effect the coming in force
of the new seamen’s act, effective today, will
liave upon shipping of coal for the rest of the
season is problematical. It has been feared .for
some time that all lines would suffer as there
are few of the boats on the Great Lakes equipped
to take care of the three shifts of crew that are
necessary under the new law. By next season
all boats will have made the necessary altera¬
tions and will be ready for business when the
spring opens, and the only question is as to the
remainder of the current season.
For the past week, almost all dock superin¬
tendents report, coal has been arriving from
lower lake ports more briskly than for a month
previous. This is true regarding all kinds of
coal. But from now on, is the general expec¬
tation, the receipts will thin out rapidly, and the
virtual end of the coal season on the Great Lakes
is believed to he not far distant. This feeling
is due not only to the fact that the docks arc
pretty well stocked for the coming winter and
will not need a great deal more coal, but also
because of the fact that boats are not going to
spend so very much time waiting for coal cargoes
at Lake Erie when there is so much of the
northwest crop still to move before the pro¬
hibitive season on the lakes arrives. The move¬
ment of the grain is more important in the eyes
of the vessel owners at this time than the move¬
ment of coal.
Shipments from this point have fallen off
heavily during the past week. .About the only
reason that can lie assigned is that dealers in
the northwest have stocked up heavily early in
the season, and with the continuation of mild
weather have not been disposing of a great deal
of their holdings ; also that threshing seems to
be pretty well through. However, it is reported,
towns along the Soo line are taking coal more
liberally than along any other section of the
territory tributary to this point.
Improvements to the extent of about $90,000
are to be made this winter on the Hanna dock
in Superior. The dock will be modernized with
the latest machinery, steel rigs replacing the
wooden ones, and the wooden dock will be faced
with concrete. This work will begin at once.
The United States engineer has just sent out
a statement making two corrections in the figures
announced at the end of September regarding
coal receipts up to that time. The only changes
are that up to September 30, 881, .508 tons of splint
coal had been received instead of 906,879 tons;
and 76,333 tons of cannel had been received in
place of 50,944 tons.
Southwest Trade.
Oklahoma City, Okla., November 4. — (Spe¬
cial Correspondence.) — Warm weather marked
the entire month of October in Oklahoma and
Texas. Coal people, having the prophetic vision,
are not grumbling. They realize that warm weath¬
er is just what is needed. Farmers in the north¬
ern part of Oklahoma, which is a small-grain
country, are busy from sun to sun planting wheat,
getting in the last crop of alfalfa — the sixth in
many instances — and putting up ensilage before
the first killing frost.
The farmers in the southern half of the state,
known as the cotton belt, are busy picking cotton.
The cotton crop is generally from thirty to forty
days late over the cotton states, which necessi¬
tates warm weather until the middle of Novem¬
ber to insure anything like a full crop. A heavy
frost earlier than that would kill the unopened
bolls, resulting in a loss of twenty per cent of
the potential crop. On August 25 it was indi¬
cated by the state board of agriculture report
that Oklahoma’s cotton crop this year would
amount to 750,000 liales ; last year it was 1,261,-
000. The acreage this season was reduced twen¬
ty-eight per cent, due to the very low price last
year. It is believed by many that the reduced
yield will return more money than last year’s
production, to the then low price prevailing.
Natural gas and oil are nightmares to coal
men in this state. Every town in Oklahoma with
a population greater than 5,000 are supplied with
natural gas, except four — and there are some¬
thing near twenty such towns. Because of the
continued activity in the oil fields of the state,
gas wells are brought in almost daily. This
insures ample pressure at all points where mains
are built, and also makes possilde the low prices
at which gas is sold, averaging seven cents for
manufacturing purposes and eighteen cents for
private use, over the state.
Little domestic coal is moving just now. Most
dealers have already supplied their large consum¬
ers, filling their bins early in September. This
done, they filled their own yards, expecting to
order thenceforth as the coal was needed. The
warm weather now being experienced is result¬
ing in a good many cancellations, for these rea-
.sons. However, there are no large stocks on
cars at any Oklahoma mines at this writing,
whereas last week there were near 100 cars at
the various mines in the McAlester field.
If this winter turns out to be severe, as is
predicted by the Indians, as well as the more
authenticated reports from other sources, there
will be a great shortage of McAlester and VVil-
burton coal, and dealers will be forced to sub¬
stitute with the inferior coals and coal from the
strip pit mines. This is owing to the fact that
the production in the McAlester district will be
reduced at least one-third, due to a number of the
large operating companies having gone into re¬
ceiver’s hands during the past year.
[The Black Diamond
VoL 55. No. 20 ^Slumbus NOVEMBER 13, 1915 ?i^^sb8rgh ^i^3.00 Per Year
Future of a Troubled Trade— Today’s Opportunity.
The unmistakable evidences are that the
United States is on the eve of another such an
upturn in business as that which started in
1808. This, unless financial men fail to keep
step, must develop another period of large
‘inanemg such as came in litOl) and thereabout.
It is not at all likely that our new financial
campaign will find expression in another series
of large consolidations, mainly because the
great opportunities have been seized. Instead,
the financing of great merchandising plans is
likely to take first place. Our export aspira¬
tions suggest this.
An Opportunity.
Even so, America’s biggest and most prom¬
ising business is still disorganized: is prac¬
tically in wholesale ruin and at the same time
offers a possible financial reward larger than
that given even by steel. Bituminous coal has
in it the making of America’s next great finan¬
cier. It will be no miracle if he does come:
it will be unbelievable if he doesn’t, seeing
that everything is ready to his hand, even in¬
cluding every device needed in the manipula¬
tions before and after the financing. There¬
fore, if America has any man of the caliber
from which financiers are made, the next few
years must produce another J. P. Morgan and
hence must see large changes in the bitu¬
minous coal trade.
To measure the possibilities of the situation
it is not necessary to go into the inevitable
new mechanical departures in coal-trade ac¬
tivities, even though therein lie possibilities of
great wealth. Instead, it is enough to show
the money to be made_ by reversing the exist¬
ing bad business practices.
No industry ever offered an opportunity to
the financier until it got into trouble. The
facts are that the bituminous coal industry is
in serious trouble now. For example, figures
compiled in 1911 show that there is invested
in the bituminous coal industry east of the
Rocky mountains $1,050,000,000. The earnings
on this money were then estimated at about
one per cent per year, or a trifle more. Since
the money “invested” evidently included bonds
as well as stocks, the one per cent earned is
clearly the average of the bond interest and
return on stocks. Since fully half of the in¬
vestment, or about .$500,000,000, is in six per
cent bonds, the stock interest was clearly rep¬
resented by a wholesale loss.
Sectional Struggle.
To add to the demoralization incident to a
lack of profit, there has developed serious sec¬
tional strifes. The inevitable result will be to
deplete the revenue of the coal trade still
further. This situation is closely comparable
to that which prevailed among the railroads
immediately before the community of_ inter¬
ests of railway control was formed. It is even
more closely analogous to conditions in the
steel industry just prior to the formation of
the Steel Corporation. .To indicate the extent
and seriousness of this warfare, it need only
be recalled that Ohio and western Pennsyl¬
vania are now fighting West Virginia before
the commissions in a vain hope of getting a
market advantage by a change in freight
rates. An industry is mighty poor when it
pins its hope to such things. Eastern Ken¬
tucky is today fighting the whole combination
of eastern states, and they in turn are fighting
it. Illinois and Indiana are, before the com¬
missions and in every other way, fighting the
whole eastern coterie, including Kentucky.
It is a death struggle which is now in progress
with investments at stake which arc truly
astounding in their proportions.
The only vita! difference between this situa¬
tion in coal and that in the steel trade of the
late nineties is that, in steel, the fighting units
had come to be of some size; in the bituminous
coal industry they arc, in the main, still small.
A Discussion of the Coal Situation and a
Suggestion of a Way to Solve Some Diffi¬
culties — A Man of Personality Is Needed.
The first and most natural suggestion is
that financing take the form of trustification.
That, in the sense heretofore considered, is
discouraged by the elementary fact of the sup¬
ply of coal. For example, the United States
Geological Survey has estimated that the coal
reserve of the United States and Alaska
amounts to 4,188,700,000,000 short tons of 2,000
pounds. If there is excluded from this the
deposits of the western states and Alaska, it
is found that in the territory east of the Rocky
mountains there is probably a coal reserve
approximating 2,000,000,000,000 short tons. Of
iliis, over seventy-five per cent is within easy
reach of any man’s pick and shovel; is close to
transportation; is near to its biggest market,
and can be opened at relatively a very low
cost.
As a matter of fact, the present unprofit¬
able condition of the coal trade arises from
the fact that so great a part of the nation’s
coal reserve — which is supposed to support a
population up to 250,000,000 persons for a thou¬
sand years or more — can be opened up in¬
stantly in response to any sudden increased
demand.
The discouraging feature heretofore has
been that to nullify this possible competition it
has been thought necessary to control this
land. Indeed, capital has been found with the
temerity to enter upon such an undertaking
in so far at least that whole deposits of coal
have been brought under control.
To measure this task, it is necessary only
to take into account the fact that 2,000,000,000,-
000 tons of this coal are available in the east¬
ern territory alone. If we figure the value of
the coal at so little as one cent in the ground
— less than the Tennessee Coal and Iron paid
for its coal — we find that to buy the coal
acreage would require a capitalization of $20,-
000,000,000 — rou.ghly, thirteen times the capital¬
ization of the Steel Corporation. If this land
were capitalized at six per cent and if the re¬
sultant interest — $1,200,000,000 per year — were
assessed against a production of 000,000,000
tons a year, the interest charge alone would
be $2 per ton.
Co-operation Impracticable.
Seeing the hopeless impossibility of such a
financial undertaking and the futility of any
smaller plan, many are disposed to abandon
finance and to pin their faith to a species of
co-operation among the present producing
units — to a sort of gentlemen’s agreement.
There are two serious objections to such a
plan :
First, a gentlemen’s agreement may be good
among genrlemen, but few are willing to abide
by it.
Second, no gentlemen’s agreement among
present producers could, prevent other persons
from opening the abundant coal measures and
working outside the agreement. Thus any such,
agreement would defeat its own ends, because
l)y making coal production universally profit¬
able .it would only invite many new compe¬
titions.
.Seeing the need of some form of control. I
have at various times suggested a device which
has the peculiar merit that it does no injury to
anyone and yet is beneficial to labor, capital,
the consumer, and posterity. It takes root
in one compelling fact, namely:
We have twenty-eight coal-producing states,
but forty-eight coal-consuming states. There¬
fore, it is impossible to consider that any one
state can control its coal supply or its coal
business unless we concede the unconceiv¬
able ultimate that one state might deprive an¬
other of coal. Regulation of coal production
must, therefore, be as broad as the need foi
coal. This demands federal control of some
kind.
A Plan.
Assuming national control, my suggestion
has been that it is unsound to assume that
the whole supply of any inexhaustible material
Mdiich IS supposed to last one thousand years
should be considered as available for produc¬
tion at any one time or all the time. I have
recommendeci that, instead of any person be¬
ing at liberty to produce coal from his acres
at any time he sees fit, the government should
limit the right to produce to the needs of the
time and the surrounding districts. As a pre¬
liminary to such a stand, it should declare the
entire coal area to be a part of public domain.
.Vs a matter of detail, I liave also suggested,
at times, that the government could very well’
It only as a_ means of entailing this estate, as
It were, cHvide all business into at least two
classes. One of these should be made up of
the extractive or destructive industries, such
as coal and minerals. The other, of course,
would include all reproductive industries or
those Avorking in raw materials the supply of
which IS constantly renewing itself.
Such a conception is so flexible, the federal
government could do anything it pleased. For
instance, the preponderance of coal would al-
w_ays be held in reserve and under full control
of tne government. Thus the authorities could
lay burdens of taxation and social obligations
upon the mines and empower them so to or¬
ganize that the consumer would automatically
the bill. At the same time, it would be
able to hold such combinations always in
check. It could, in fact, ruin any such com¬
bination instanter by_ merely releasing some
of the coal land held in reserve. The produc¬
tion from the released land would break the
monopoly.
With such control of the situation, the
question of what is good policy could decide
whether in future the nation would allow
co-operation among small producing units or
whether it would encourage control of whole
producing districts by large capital.
Advantages.
If the nation wished to be extremely liberal,
it could encourage all of the small men now
producing coal to continue to do so, arriving
at their prices by trade conventions. They
would embalm the extravagant methods and
the wastefulness which have grown up under
the old system. .-Ulso, it would encourage the
present system by which small men with no
knovcledge launch themselves in business and
.get their commercial education at public ex¬
pense. If that is the wish of the nation, it can
easil\ lie expressed in a plan of co-operation
which will continue all the small operators in
control of their present acreages and mines.
The advantage of such a system is that it
makes coal expensive and hence encourages
the consumer to study fuel economy through
furnace efficiency.
The alternative plan, of course, would be for
the .government to encourage large capital to
control and manage the mines in large units.
Whole districts, in fact, could be placed under
the control of skilled men. Since their selec¬
tion would be left to large financial interests,
naturally they would be those who had proved
their ability to produce and market coal
cheaply while working for other large units,
.^uch a plan would be the antithesis of the
co-operative system, because the real produc¬
ers would get their education while serving as
department heads of bi.g companies and at cor¬
poration expense. The steady and great
.growth of coal demand would make room for
(Concluded on page .lO,"!)
386
THE BLA( K DIAMOND
[November 13
Big Ship Building Company Is Forming.
The east looks for great prosperity for some
.rears to come due to the extensive luiilding in
all lines using steel and necessarilv coal. The
government stands committed to a plan which
'vill mean practically the doubling of our war
fleet during the next five years; our army is
I'l be accordingly increased and an enormous pro¬
duction of war munitions will naturally follow.
The railroads will naturally profit from an
expansion of the steel, iron, coal and coke busi¬
ness. which means that the lienelits that will
accrue from an expansion of our naval and mili¬
tary exiienditures will be passed along from one
industry to another. Ifach industry, like the
ga’nliler’s kittv, will receive some benefit.
.Moreover, the end of the European war is not
yet in sight. As long as it lasts, the United
.''tates will have to supply enormous (juantities of
munitions. As soon as peace is declared, it is
the general opinion that the United States will
be taxed to furnish a sufficient amount of steel
and other wares to rebuild devastated Europe.
.\o matter which way the hfuropean war cat
jumps, this countrv stands to profit.
Therefore, it is not out of the line of reason
to learn that the wise Mr. Schwah is planning
to make for the Bethlehem Steel Corporation, the
greatest shipbuilding organization in the country.
I■^nancia^ - 1 incrica, in speaking on this subject,
says:
'Tn the number of shipyard ways which will
form Bethlehem properties, according to the
plans. Mr, Schwab will have one of the leading
organizations of the world, although in the size
of merchant vessels to be constructed, his works
will still be exceeded by such organizations as the
British firms of llarland Wolff, and of Work¬
man, Clark & Co., and the Vulcan yards at Ham¬
burg.
"The acquisition of the Pennsylvania Steel
Company is one of the leading steps by iMr.
Schwab in his present plans. A rebuilding and
an early placing in operation of the Crescent
shijiyarcis on the Arthur Kill, at Elizabethport,
X. .1., will be another. The Crescent shipyards
were, at one time, among the leading builders
in this country of cruisers, torpedo boats, sub¬
marines, and other war craft, executing con¬
tracts for the United States, for Russia, and
other governments. Since 1907, the Crescent
Shipyard Corporation has been consolidated with
the Samuel L. iMoore & Sons Corporation, a
subsidiary of the Bethlehem Steel Corporation.
“The Aloore plant consists of iron foundries,
machine shops, -etc. It has extensive facilities
for marine repair work and, according to the
plains, which were brought to light Saturday,
extensions to its plants are to be begun at an
early date, entailing expenditure of $1,500,0(1(1. In
conncciion with this work, the Crescent yards
will (piickly he put in shape to resume operations,
being fitted up particularly for the work of
handling submarine orders in conjunction with
the Submarine Boat Corporation.
“The Fore River yards and the Union Iron
Works of the Bethlehem have been used, thus
far. for the building of hulls on the orders
placed with the Submarine Boat Corporation,
but will prove inadequate for the handling of
the orders placed on the books in the last few
months, largely through Mr. Schwab’s efforts,
and additional orders now under negotiation, the
closing of which appears assured. In the latter
are included negotiations with Japan, and with
one of the neutral nations of Europe.
“Acquisition of the Pennsylvania Steel Com¬
pany gives the Bethlehem Steel Corporation the
Sparrow’s Point shipyards which have turned
out the highest class freight vessels constructed
in any American yards. All the vessels of the
.\merican-Hawaiian Steani.ship Line, which takes
first rank as freight carriers in coastwise trade,
were turned out from, these yards. The yards
have also done extensive government work. The
Sparrow’s Point yards belong to the Maryland
Steel Comiiany, in its turn controlled by the
Pennsylvania Steel Company.
".Xn inkling of Mr. Schwab’s ambitious plans
for the actpiisition and development of shipyards
was first afforded a few years ago when an¬
nouncement was made of the purchase by the
Bethlehem of the Fore River yards at Quincy,
Mass. The entire list of shipbuilding plants
which the Bethlehem Steel Corporation now
owns, following the acquisition of the Pennsyl¬
vania Steel Company is as follows: Sparrow’s
Point yards at Sparrow’s Point, Md.; Union Iron
Works Drydock Company, San Francisco: Har¬
lan & Hollingsworth yards at Wilmington, Del.;
Fore River yards at Quincy, Mass.; and Crescent
yards (at present inoperative) at Elizabethport,
X’. J.
“That Mr. Schwab has acquired other ship¬
yard properties has been persistently rumored, for
months, his name having been most frequently
coupled with the reported change of control of
William Cramp & Sons Ship & Engine Building
Company. , The Bethlehem Steel Corporation
and the Cramp yards have for years worked
together on contracts for vessels for the United
States, for Argentina and other governments.
The Cramp is the largest single shipbuilding plant
in the country.
“The Roach shipyards at Chester, Pa., recently
Iiassed to new owners, the identity of whom has
not been made known, and there has been a
similar air of mystery regarding deals put through
affecting shipyards on the Gulf, in which Mr.
Schwab’s name not unnaturally has appeared, but
there has been no instance in which the rumors
of ac(|uisiti(m hy Mr. Schwab have been so per¬
sistent and have had the appearance of as much
basis as with regard to the reported deal on the
Cramp works.
The loading of coal has become an art. Degra¬
dation or breakage is the bugbear of everyone
connected with coat production or sale. Conse¬
quently every improvement in loading methods is
eagerly watched. The Christopher Coal Mining
Company, at Christopher, 111., has recently com¬
pleted a new plant which will bear discussion be¬
cause it is especially designed to load coal quickly
and without breakage.
The plant in question has a capacity of 4,000
tons per eight hour day. The usual mining shaker
screen equipment is supplemented by a loading
boom for large lump coal and two picking belts of
the pan conveyor type, each four feet broad.
These tables as well as the loading boom are ar¬
ranged so as to deliver coal to open cars or to a
four-foot pan cross conveyor running parallel
with the screen above the car tracks and delivers
the coal to the box car loader. Box cars are
loaded on a fifth track by a Manierre loader.
To convey the coal to this loader, the coal from
the two picking belts is switched onto the cross
conveyor by merely closing or opening a flop gate
without stopping the screen. In the case of the
lump coal, this is done by raising the loading
boom so as to deliver the coal to the cross con-
“Nothing further could be learned at the offices
of the Bethlehem Steel Corporation Saturday
regarding the purchase of the Pennsylvania Steel
(.ompany. It is believed in steel circles that
there will be no merger of the two concerns,
but that they will be operated separately. It is
pointed out that there are many benefits to
separate operations and that the Bethlehem Steel
interests will take advantage of these.
"By far the most importance is attached by
steel men to the fact that the deal gives the
Bethlehem Corporation the Sparrow’s Point ship
lilaiit of the Maryland Steel Company. It is
said that this addition will, in time, prove the
most profitable in the transaction, especially in
connection with the Chilean ore properties of
the Bethlehem concern.
“That the Bethlehem corporation, which has
iluring the last few years been a big factor in
the steel trade, will become even a larger one
because of this deal, is not doubted by any inter¬
est. It is the belief that Mr. Schwab’s plans
call for further enlargements which will eventual¬
ly take in every branch of the steel business.
Whether this will be done through acquisitions
of other properties or by additions to the present
plants is not known.”
veyor or hy depressing the same if the open cars
are to be loaded. The screenings are carried by
conveyors to a storage hopper, from which open
cars can be loaded, or they can be diverted to a
conveyor carrying them to the storage bins above
the boilers.
The loader itself is of the Manierre standard
stationary steel apron type with what they call
their overslung locking arms, ball bearing screw
jack, and power tilted loader equipped with 30
H. P. totally enclosed slip ring motor. The chute
is of the Manierre standard swivel type for carry¬
ing the coal from the end of the cross conveyor
to the loader in all positions while loading. The
machine is arranged to fill the center of the car,
thus increasing very greatly the tonnage handled
at slow belt speed, insuring a minimum of break¬
age, When fully loaded this loader has a capac¬
ity of six thirty-ton cars per hour, provided that
not more than two minutes is taken in spotting
cars. As above stated, the whole arrangement
has been laid out to insure clean coal and freedom
from degradation. But in doing so, it can be
seen, the flexibility of the whole plant is ideal, as
any grade or combination of grades, can be loaded
for box car shipment at any desired speed.
New type of Loader installed for Christopher Coal Mining Company.
A New Type of Box Car Loader.
THE BEA( K DIAMOM)
387
No. 20]
Lehigh Valley Annual Report.
The Lehigh Valley Railroad Company earned
a net income of $6,322,444.96 for the fiscal year
ending June 30, last, a decrease of $734,214.73
under last year. The sixty-first annual report of
the Railroad Company was recently made public
It shows operating revenues for the fiscal
vear of $42,525,962.02, an increase of $355,315.24
over last year. Operating expenses were $29,947,-
387.54, a decrease of $140,517.66, giving a net
operating revenue for the year of $12,578,574.48,
an increase of $495,832.90.
In comparing these figures with those of last
year, it should be recalled that a $685,080.00 divi¬
dend on Temple Iron Company stock owned by
the Lehigh Valley was included in its year’s in¬
come l)y order of the Interstate Commerce Com¬
mission. Naturally, there is no such dividend this
year. Comparison of the figures for this year
v/ith last and previous years also is complicated
by a rule put into effect a year ago by the Com¬
mission, changing bookkeeping methods in cer¬
tain accounts. To form a basis for comparison,
the figures given out in 1914 have been adjusted to
the new method. Particularly interesting, in the
operating expenses is a $421,871.94 reduction in
transportation expenses. That the company’s
equipment is being kept to the best possible stand¬
ard is indicated by an increase of $537,698.13 in
that account.
After paying four quarterly dividends of two
and one-half per cent each on the common and
preferred stocks, amounting to $6,060,800, and
making various adjustments, the profit and loss
account of the company on June 30, 1915, showed
a credit of $23,692,716.83.
No increase in the funded debt of the company
was made during the year. Thus far the im¬
provements which have been made in connection
with the new freight and passenger terminals at
Buffalo have been financed out of the current
cash resources of the company. It is proposed,
however, at a later date to make a specific issue
of bonds to cover the major portion of this ex¬
penditure. Capital obligations, consisting of col¬
lateral trust bonds and equipment trusts to the
amount of $2,800,000 were retired during the
year.
The year’s revenue from the handling of mer¬
chandise freight amounted to $16,005,501.45, an
increase of $463,615.55 over last year. The reve¬
nue from the transportation of coal and coke
amounted to $19,195,755.50, an increase of $667,-
509,06, as compared with the previous year. The
average revenue per ton was 116.30 cents. Last
year it was 114.43 cents. The number of tons
carried one mile was 5,326,328,902, an increase
of 140,128,336, and the revenue received per train
mile was $4.10, an increase of one cent a mile.
The average train load of freight was 620.72 tons.
A remarkable feature of the report, and one
indicating the business depression of the last year,
appears under the head of “other income,” being
known as "hire of equipment.” In other years
this has shown a credit — in 1914 it was $325,440.01,
but in the year just ended, a debit balance of
$68,807.74 was shown, a decrease of $394,247.75.
Hire of equipment represents mainly the use of
freight cars of other lines on the Lehigh Valley
and of Lehigh Valley cars on other lines, and the
figures indicate the general stagnation in the
movement of freight.
Passenger earnings during the year showed a
considerable decrease, due, it is said, principally
to the suspension of immigration business, a large
part of which annually has gone to the Lehigh
Valley. The earnings from passenger traffic
amounted to $4,043,799.00, a decrease of $751,-
348.44 from the previous twelve months.
The total number of passengers carried was
5,206,972, a decrease of 522,070 under 1914. The
average revenue from passengers per train mile
was 1.875 cents, a decrease of .068 cents.
“Your company has pursued a fairly aggres¬
sive policy in the matter of expenditures for the
development and improvement of its property,”
says President E. B. Thomas, in the report. “The
appropriations for the year were also very liberal
for the maintenance of the permanent way and
equipment. Your board of directors has believed
it to be for the best interest of the stockholders
to pursue this policy of liberal maintenance and
conservative development for the future, notwith¬
standing the fact that the revenues were some¬
what affected during part of the fiscal year as a
result of the disturbed business and financial
condition of' the country resulting from the
European situation.”
Important improvements now under way, named
by President Thomas, include the new passenger
and freight terminals and a modern steel and con¬
crete coal dock, all of which are now building
in Buffalo. The coal dock will be ready for use
in a few weeks and the freight station by No¬
vember 1st. In and about New York City impor¬
tant improvements are now in progress. A 1,060-
foot dock equipped with modern ore-handling ma¬
chinery together with necessary yard tracks is
building at Constable Hook, near Bayonne, on
New York bay. It will be finished early in the
spring of 1916. A 730-foot steel and concrete
pier is being erected at the foot of Rector street
on the North River, which will be ready for op¬
eration about January 1, 1916. A two-story cov¬
ered steel pier, located between Gouverneur and
Jackson streets on the East River, intended par¬
ticularly for the flour trade is building, and a steel
hay warehouse at 149th street and the Harlem
River will soon be ready. During the year im¬
portant extensions and improvements were made
at pier 5, Wallabout Basin, Brooklyn. A fifty-
stall fireproof engine house is building at Sayre,
Pa., and additional car repair yards at Coxton,
Pa., are being constructed. Switch yards at South
Plainfield, Perth Amboy and Newark recently
were enlarged.
Equipment purchased during the year includes
eight locomotives, forty steel passenger coaches,
twenty-five steel baggage cars, two 150-ton steam
derricks, two snow plows, and eleven gasoline
motor cars for the use of section, bridge, signal
and telegraph gangs. The Lehigh Valley now has
a total of 110 of such motor cars in use on its
line. Orders have already been placed for ten
Pacific type passenger locomotives, five switching
locomotives and twenty-five milk cars. During
the year fifty-three heavy consolidation type
freight locomotives were rebuilt and equipped
with super-heaters, new cylinders and other mod¬
ern features calculated to reduce fuel consump¬
tion and increase efficiency.
President Thomas again calls the attention of
the stockholders to the steady increase in tax
accruals, which he points out, have increased
at a rate out of proportion to the increase in
revenues. The total taxes of the Lehigh Valley
now amount to 4.23 per cent of the company’s
gross operating revenues. In the last ten years
operating revenues have increased 29.69 per cent,
while taxes have increased 154.21 per cent.
At the same time that the railroad report was
made public, F. M. Chase, Vice-President and
General Manager of the Lehigh Valley Coal Com¬
pany, also made public his annual report for the
same period. It showed a total net income of the
coal company from all sources, after deducting
charges for royalties, sinking funds, depreciation
of the property and interest on the funded debt,
of $1,022,814.91, an increase of $457,955.47. The
production of anthracite coal from the mines
owned and leased by the Lehigh Valley Coal Com¬
pany, including that mined by tenants, was 8,088,-
901 gross tons, an increase of 211,511 tons. In the
bituminous mines owned by the company 258,205
gross tons were mined, an increase of 5,474 tons.
The sum of $517,542 was expended for additions
and betterments during the year.
The steel fire-proof breaker at Packer No. 5
colliery, referred to in the last annual report, was
completed and is now in successful operation.
Other improvements at this colliery, including a
substantial addition to the boiler plant and a new
steel head-frame over the shaft, have been com¬
pleted, and a new steel fire-proof ventilating fan
is now in course of construction. At Packer No.
4 colliery the alterations to the breaker and the
concentration of the underground pumping are
well under way and will be completed during the
coming year. An addition to the boiler plant at
Dorrance colliery has been made to provide the
increased amount of steam required because of
the extension of underground operations.
Prospecting on the Broadwell lands in Lacka¬
wanna County is now under way with a view
to commencing mining operations thereon and
taking the coal to Heidelberg colliery for prepara¬
tion.
To reduce still further the risk of destruction
by fire, a complete spray system was introduced
at each of the frame breakers and, as a result of
tests made under the observation of representa¬
tives of the insurance companies, a substantial
reduction was made in the premiums paid for fire
insurance. The operations on the bituminous coal
lands at Snow Shoe arc being steadily develoi)ed
to permit of greater efficiency. As soon as the
power line, now under construction, is com¬
pleted, electric haulage will be substituted for
mules and electric coal cutting machinery will be
introduced in place of pick mining. The properties
at West Harrison street, Chicago, and Fillmore
aveinie, Buffalo, which were no longer required
in the conduct of the Company’s business, were
sold during the year.
Satisfying the Miners.
The Hisylvania Coal Company of Columbus.
Ohio, inserts the blank, of which the illustration
herewith is a reproduction, in all the pay envel¬
opes of the miners. As this shows, the miner is
credited with everything that he did and for each
piece of work the price agreed upon in the scale
contract is put down in the column devoted to that
subject.
In the case where no price is fixed by the scale,
but where the price is arrived at by understand-
in.g of the individual, that matter is put under the
column devoted to "price.”
Under the column devoted to credits, there is
The Hisylvania Coal Co.
Due
No.
For Labor perlornicil to bale ot
Tons, bais
Loading
Price Credits
Slate (Sj/
Yards Entry
.3332
Bbls. water @
.10
Wet coal @
0244
Break Thro. @
.06
Room coal @
.40
Entry coal ^
.489
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Room coal @
.07
Entry “ @
.097
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Da; work
Labor
Labor ©
TOTAL CREDITS
Powder
Store
Coal
Rent
Checks
U. M. W. of A.
Initiation •
Collection
£ !
TOTAL DEDUCTIONS
Balance due
Store overdrawn
The Hisylvania Slip.
stated precisely the amount of work that was
done. The amount due the miner for each item
is stipulated in the third column. Under the cir¬
cumstances there is no possible chance for a mis¬
understanding between the miner and the com¬
pany as to what is due.
Below there is a detailed statement of all deduc¬
tions from the total due for work done. That is,
there is a deduction for the powder bought, for
the amount due the store, for the price of coal
purchased, for the rent of the house, for checks
issued to the worker, for the dues to the miners’
union, and other incidental items. The whole
statement is very compact and can easily be un¬
derstood and figured out in a short time by any
miner who is able to read and write.
Exactly the same information as is carried on
the slip is also printed on the pay envelope itself.
-After a continuous e.xistence in the same
(piarters for over forty-five years, the retail con¬
cern known as M. -A. Suydam & Co. has taken
a new office location, lit South Third street, on
the street floor of the Hartman building, Colum¬
bus, Ohio. William S. Connor, the present pro-
jirietor, went with the Suydam interests as a lad
forty-two years ago, when AT. -A. Suydam. a pio¬
neer Hocking valley operator, shipped coal to
Columlnis by canal. He has remained with the
business ever since, advancing to the position of
manager, and finally to sole owner. I'or (piite a
long period he was prominent in local city gov¬
ernment, and was one of the wheel-horses of the
old Ohio Wholesale & Retail Coal Dealers Asso¬
ciation. -Although by no means an old man,
"Billy” Connor is recognized as the Nestor of
the Columbus retail coal business, and his mod¬
ern new location will add to his prestige.
The Lehigh Valley Coal Company has under
consideration the building of a $2()(),PO0 breaker,
the work on which will be commenced next
spring. This equipment is necessary to handle
the new stripiiing operations which have been
started in this vicinity.
388
THE BLACK DIAMOND
[November 13
The Koenig Truck Under the Loading Chutes of the Pocket.
One of the Koenig Trucks in Front of the Company’s Office.
Koenig Trucks Make Branch Yards Unnecessary.
The P. Koenig Coal Company of Detroit lias
installed the motor truck and eliminated the
hranch yard. With six commercial vehicles, of
four and five tons’ capacity, in addition to large
horse and wagon equipment, this company has
found it possible to cover the entire territory of
the growing city of Detroit and its suburbs from
a central yard, located near the geographical cen¬
ter of the city, on the main line of the Crand
Trunk Railroad.
The latest acquisition of this company in the
way of motor driven vehicles was the purchase of
a four-ton Packard worm drive truck equipped
with regular steel dumping body oiierated by
Wood hydraulic hoists. This truck has been in
operation only a comparatively short time hut,
like the other power wagons owned by the Koenig
Company, has fully demonstrated its value as a
quick, economical and reliable transportation
means. One picture herewith shows the truck
receiving its four-ton load from the overhead bin
in the yard of the P. Koenig Company, which is
regarded as one of the most modern labor-sav¬
ing installations of coal-handling machinery in
this section of the country.
.\nother photograph shows the truck in front
of the Koenig yard office ready to start on a de¬
livery trip three and one-half miles distant.
.Mr. Norman Koenig, one of the members of
the firm, is authority for the statement that the
truck does the work of four two-horse teams,
and does it at a lower cost than the horses could
accomplish. Trips of six to eight miles from the
central yard are in the every-day work of this
truck and no longer regarded by the Koenig Com¬
pany as a burden.
"We are getting along very nicely without the
e.xpense of the branch yards and the trucks are
giving us more than satisfactory service," said
Mr. Koenig.
Losing Money on Handling Coal at Retail
too, this advertisement costs something and other
selling expense costs still more. Also there is
interest on the investment in the yard; interest on
the investment in the coal ; overhead expense, in¬
cluding salaries: loss by degradation of the coal,
etc., which must bring the cost of doin,g business
up to ninety cents or $1.00 a ton.
Even assuming that cartage and overhead ex¬
pense costs so little as eighty cents there is, with
a margin of only thirty cents, a clear loss of fifty
cents a ton. .apparently the minimum loss is
hi.gher than that, running to sixty cents if not to
seventy-five cents a ton.
That raises this insistent question of arithmetic ;
"How can a retail concern lose seventy-five cents
a ton and then afford to guarantee weight, quality
of coal, and service which this advertisement guar¬
antees?” There is a loose joint in this harness
somewhere and every sensible coalman wonders
what it is.
Of course the e.xplanation is not hard to find.
The retail dealers of Louisville are in a price war.
They have carried this to the extent of losing
from fifty to seventy-five cents a ton on all the
coal handled in the busiest retail time of the year.
Coal-Mine Fatalities in August.
There is reproduced herewith an advertise¬
ment which appeared in one of the daily news¬
papers of Louisville, Ky., a few days ago. This
raises a simple matter of arithmetic that has
been puzzling to most of the coal trade for a
number of years.
The advertisement says clearly that the de¬
livered price of coal to the householder is to be
$.3.60 for domestic lump. It says also that a dis¬
count of twenty-five cents a ton will be allowed
those who pay their account within ten days.
This makes the net price of coal to the house¬
holder $3.3.'). That is the plain wording of the
advertisement. There can be no mistake about
that figure.
.About other figures there is no mistake either.
The brands of coal here advertised have been
Wilton’’ Jellico ...
^^Pioneer” Straight Creek
Round Or Family (Willon or Pioneer)
sellin.g during the fall and are now selling at
$3 a ton at the mines. That is what the retail
dealers are paying for the coal.
-Also there is no mistake about the freight rate.
That is fixed by the tariff and filed by the Inter¬
state Commerce Commission and cannot be devi¬
ated from. The freight rate from the mines of
the Jellico field to Louisville is $1.0.‘).
.Adding together the sellin.g price of the coal of
$2.00 a ton at the mine and the freight rate of
$1.0.> makes the delivered price of the coal f. o. b.
the retail yard $3.05.
Deduct this $3.05 from the net price to the pur¬
chaser of $3.35 and you have left thirty cents a
ton. This must cover cartage which, on the aver¬
age, costs at least lifty cents. There is a clear loss
of twenty cents a ton on carta.ge alone, 'fhen.
CHARGE PRICK VET PRICE
«O.60 Ton\ ..
) We Give Discount 25c
$3*®® ** Ton. Pay 10 Days n $3'^®
^3.50 ) Alter Detivory ($3*25
Compiled by Albert H. Fay.
.According to the reports made to the Bureau
of .Mines by state mine inspectors 162 men in
all were killed in and about the coal mines in
the United States during August, 1915, as com¬
pared with 180 during .August, 1914.
If eleven fatalities in .August, 1914, for which
there are no comparable figures for .August,
1915, be deducted, the figures become 162 for
.August, 1915, and 169 for .August, 1914.
.An explosion of gas on .August 31, at Orenda
No. 2 mine, Boswell, Pa., resulted in the death
of 19 men.
The Roberts & Schaefer Company, Chicago, an¬
nounce the award of the following new coal
mining plant contracts: Messrs. Peale, Peacock
& Kerr, of New York, a two-track steel tipple
with car haul, using Marcus patent picking table
screen, for Mine No. 0, Winburne, Pa.; Russell
Coal Mining Company, Russellville, Pa., .equip¬
ment for Marcus patent picking table screen for
Mine No. 24. This company is also owned by
Peale, Peacock & Kerr. The National Fuel Com¬
pany, of Denver, Colo., have awarded a contract
for a new wood tipple at Shamrock mine, Colo¬
rado. The Cabin Creek Consolidated Coal Com¬
pany, of Charleston, AV. A'^a., have awarded a
contract for a Marcus coal tipple equipment for
in.stallation at Kayford, AAA Va. Mr. George L.
Carter, president of the Carter Coal Company,
Coalwood, \A^. Va., has authorized the Roberts &
Schaefer Company to proceed with the building
of a large Marcus patent coal tipple with load¬
ing booms, which was contracted for some months
ago, for the new mine recently sunk at Coal-
wood, known as the Olga mine. This will be one
of the largest installations in West Virginia. The
Carter Coal Company also gave the Roberts &
Schaefer Company a contract last week for a
new Marcus wood tipple for Nora mine at Coal-
wood, W. Va.
ALSO PITTSBURGH, SMOKELESS^ ANTHRACITE
BYRNE & SPEED COAL CO. and
JELLICO-LAUREL COAL AGENCY
CoosoifdatBd
S89. 315
WATSON. Manaeer.
OFTICE, 413 W. /ETFKBSON
The Advertisement Which Discloses a Heavy Loss on Retail Coal.
Buying COAL From the Oldest COAL Firm In the City
GUARANTEES WE1GHTSu"e SPECIFIED r SERVICE
No. 20]
389
THE BLACK DIAMOND.
Grasping an Opportunity.
Reference was made in this department recently
to some real estate dealers who, in order to
make their houses more attractive, buy the coal
and start the heating plants, thereby becoming-
live prospects for coal sales.
A stunt along this line, but more effective, from
an advertising standpoint, was recently used by a
dealer in an Ohio valley city. A realty and build¬
ing firm had just completed a handsome residence
in a popular suburb, and had decided to attract
attention to it by furnishing it completely. The
entire house was fitted up, the floors were cov¬
ered with handsome rugs, the pantry was sup¬
plied with groceries and the coal-bin was like¬
wise filled. The names of all those furnishing
goods or materials for the house were given pub¬
licity in a folder issued by the builders. The
house itself was advertised in the newspapers as
“The Marvel Home,” and the public was invited
to come and see it. The house was kept open
night and day, and several hundred people went
through each day, noting not only the attractive
way in which the house had been furnished, but
likewise getting a favorable impression of the
people who had supplied the equipment and mate¬
rials.
The coal dealer who filled the bin said that he
had furnished the coal without charge, as an ad¬
vertisement, and it really looked as if he secured
his money’s worth. In the first place, those who
came to look had their eyes wide open, ready to
receive all the information they could about the
handsome new house. In the next place, seeing
the filled coal bin always attracted comment, be¬
cause it looked so unusual in a new house. The
card of the coal concern was tacked on the side
of the bin, and it was impossible to overlook it.
The dealer received enough comments to feel
justified in having made the outlay represented
by the value of the coal.
“Stunt” advertising is not always a good thing,
but in this case, where the favorable attention of
a large number of desirable coal buyers was se¬
cured, it looked like an excellent proposition.
Coal and Smoke Consumers.
The coal dealer who is succeeding is the man
who is keeping abreast of the times with refer¬
ence to everything affecting the use of his prod¬
uct. He cannot afford to be indifferent to smoke
regulation, for one thing, nor ignorant about the
best types of smoke consumers.
In a certain city where public sentiment is not
as active as it should be, people operating boilers
for power and heating purposes are allowed to
do pretty much as they please, as far as smoke
emission was concerned. That is, the nominal
regulation does not amount to anything, and few
people put in consumers unless they want to.
Now, apparently, this makes things easy for the
coal dealer. One might almost regard this as an
ideal town in which to sell soft coal.
But while a big concern which is not officially
regulated from the city hall may be slow, in the
absence of any other consideration, to change its
boilers so as to reduce tlie amount of smoke
given off, it very often thinks a good deal of the
opinion of its neighbors. Such an instance de¬
veloped in this case. One corporation, which was
one of the worst offenders regarding the smoke
evil, is located in the heart of the city, and the
situation attracted the attention of a good many
influential people, who felt personally affronted
because of the smoke and soot that the company
poured into their windows.
They went around to see the concern, and
asked it please not to do that any more. The
head of the company happens to he a man of
rather broad gauge, and instead of resting on his
legal rights and defying the citizens to do their
worst, he promptly told them that the smoke^ evil
would be immediately done away with. Natu¬
rally, they went away feeling that the corporation
was public-spirited and that the head of it was a
good fellow.
The point the coal dealer is interested in, how¬
ever, is that this concern made a contract with
the local gas company, and has been heating its
lioilers with that kind of fuel instead of coal. If
the town had been a little more active in smoke
regulation, and had not permitted the disadvan¬
tages of coal in this respect to be given so much
unfavorable publicity, the company referred to
would still be a big and regular consumer,
whereas it has gone off the books of the local
dealers permanently.
Do you get the connection?
Why Not Sell Wood, Too?
In these days of colonial homes, open fireplaces,
etc, the use of wood is increasing. This is in addi¬
tion, of course, to the “kindling” wood, which is
needed in almost every household, particularly
that which is not equipped with a furnace.
The coal dealer ought to make himself “fuel
headquarters.” That means that he ought to be
able to furnish wood as well as coal, if his cus¬
tomers want it. The average person depends on
old boxes, crates and the like for his supply of
kindling, or calls up some woodworking plant and
asks for a load of wood, when he would be much
better pleased if he could have his regular coal
dealer supply him at the same time that the coal is
delivered.
To show that there is enough business to be
worth going after, there are a good many con¬
cerns which handle wood for fuel exclusively.
Saws operated by power are used to cut the wood
to size, so that anything from kindling to open-
fireplace dimensions can be furnished.
In towns where timber may be had easily, it
would be worth while to saw up logs, with the
bark on, so that those who like things of an old
fashioned kind could have their log fires, the sort
that were familiar a generation ago.
But, anyhow, there is money in wood, and the
business ought to be organized by the coal dealer.
Classify Your Mailing-List.
A paper salesman happened to drop in on a
prominent coal dealer the other day. He was
interested, of cour.se, in selling him something in
that line ; but, like most salesmen, he had an idea
or two that he was perfectly willing to hand over
to the dealer.
Direct advertising came up in the course of the
conversation, and the dealer proudly called atten¬
tion to his card index of names, used as a mail¬
ing-list, which was frequently worked with ad¬
vertising matter of various kinds, ranging from
price (piotations to calendars.
“Have you got it classified?” the salesman
asked.
“Whadd'ye mean, classified?” the coalman
asked. This was a new one on him.
"Well,” continued the salesman, “down at our
idace the advertising manager has one of the best
mailing-lists you ever saw. But it’s classified in
about a dozen different ways. W’e sell the print¬
ers a lot of stuff, of course, and they are split
up into those who operate their own composing
machines, those who do binding, those who have
their presswork done under their own roofs, etc.
Then there is a special list for retail dealers who
sell paper, and another list for factories which
use paper in their business. Consumers like your¬
self are divided and subdivided, and the result is
lliat whenever the house wants to advertise an\
special kind of paper the particular list which is
interested in that commodity is used, and we don’t
have to waste postage on the rest.”
.After the paper man had gone the coal dealer
began to tbink.
“I've got all sorts of consumers in that file,” he
said to himself. “There are people who use stoves
and grates exclusively — the sort to whom ‘Holds
fire over night’ means a lot : then there are those
with hot-air furnaces and those with hot water
and steam heating plants. Then come the busi¬
ness houses, some of which have boilers for
power and some for heating only. But in their
cases the amount of coal used and the kind are
llie important items.
"I believe there are enough classes of coal buy¬
ers to make it worth while to select them. Then
when I want to advertise a coal that will make
good for use in a heating stove I won’t be talk¬
ing to people who use furnaces; and when I am
getting up a steam coal letter, I won’t have to go
to any special trouble to weed out the domestic
consumers.”
The idea that this dealer got from the man who
wanted to sell him something suggests, too, that
there may be lots of people who come into your
office, and are turned away without being given a
chance to express themselves, when they could
give equally valuable hints and sometimes direct
information worth having.
“The Tie That Binds.”
Service has sometimes been referred to as “the
tie that binds.” Certain it is that the customer
who realizes that his dealer is giving him good
service is going to be mighty hard for competi¬
tors to pry away.
The dealer who is wondering how in the world
he can develop service that in any degree is dif¬
ferent from what everybody else is furnishing
should remember that the main thing is to put
himself in the customer’s place. When he is han¬
dling a proposition, especially if it is slightly out
of the ordinary, a reflection as to whether the
method used will be convenient to the customer
will often suggest a change in the method.
The other day the telephone in a coal office
rang, and the dealer found a customer on the end
of the line. He wanted five tons of lump and
live of nut and slack. He gave the name and
address and was about to hang up the phone,
when the dealer had an idea.
“Hello!” he said. “Pardon me, but how did
you intend to use this coal?”
“I’m going to use the nut and slack for a fur¬
nace and the lump for grates and stoves,” said
the customer. “Why ?”
“I \yas just thinking,” explained the dealer,
“that in that event we had better keep the two
grades separate. Have you a partition in your
coal-bin ?”
"By George, I hadn’t thought of that,” re¬
turned the customer. “I’ll put it in right away,
and then you can pile the nut and slack on one
side and the lump on the other.”
This was “service,” disguised as common sense.
^ et there are certain dealers who, with an order
of this kind, would go ahead and deliver the two
grades indiscriminately, piling it altogether in
the bin, so that if the customer wanted to get a
hod of big lumps for an open fire upstanrs, he
would have to start a mining operation to get
under the nut and slack. Of course, the dealer
always has the alibi, “I had no instructions about
it,” but the concern with the service anticipates
some of the points that the customer overlooks.
A Neat Way of Putting It.
•A successful retailer who was having trouble
getting out his orders promptly enough put a card
in the paper explaining the reason. The wording
of the card showed that he should have been a
diplonffit, for instead of the inability of the con¬
cern to keep up with the rush of orders seeming
to be a reflection upon it, the ad made it a big
boost. This is what he said :
‘‘Our efforts to give our customers good coal
and good service have been so emphatically appre¬
ciated that we find it impossible to get enough
labor to fill all orders in full with our usual
promptness.
“We will, of course, see that everybody gets
enough coal to tide them over, and then deliver
tile balance as fast as possible.
“Send us your order, and though we may not
be able immediately to deliver it in full, we will
certainly get it to you as fast as you need it.”
390
_ _ THE BLACK I>IAMOND. _ [November 13
Details of the Rockefeller Plan in Colorado.
Quite a while ago much was said about the
plan which Jolin D. Rockefeller, Jr., and his asso¬
ciates presented to the miners in Colorado at the
meeting when the miners’ representatives got
together with the eastern financier. The plan
which he proposed was, at that time, outlined in
skeleton form. Since then it has been reduced to
a pamphlet and has been distributed. A copy of
that pamphlet has come to the office of The
Black Diamond.
Because there is in this undertaking a lot of
things that are likely to influence coal producing
districts elsewhere, there is presented herewith
the plan stripped only of its superfluous verbiage.
That plan is as follows :
1. Employes shall annually elect from among
their number representatives to act on their
behalf with respect to matters pertaining to their
employment, working and living conditions, the
adjustment of differences.
2. The annual meetings of employes for the
election of their representatives shall be held
simultaneously at the several mining camps on
the second .Saturday in January. The meetings
shall be called by direction of the president of
the company. Notices of the meetings, indicat¬
ing their time and place, as well as the number
of representatives to be elected, shall be publicly
posted at each camp a week in advance.
3. Each meeting for the election of employes’
representatives shall choose its own chairman
and secretary,
4. Representation of employes in each camp
shall be on the basis of one representative to
every one hundred and fifty wage-earners, but
each camp, whatever its number of employes,
shall be entitled to at least two representatives.
5. To facilitate the nomination and election of
employes’ representatives, and to insure freedom
of choice, both nomination and election shall be
by secret ballot, under conditions calculated to
insure an impartial count. The company shall
provide ballot boxes and blank ballots, differing
in form, for purposes of nomination and election.
6. The chairman shall appoint three tellers,
who shall take charge of the ballot box contain¬
ing the nomination votes, and, with the aid of
the secretary, they shall make out the list of the
duly nominated candidates, which shall be an¬
nounced by the chairman. The meeting shall then
proceed to elect representatives by secret ballot,
from among the number of candidates announced,
the same tellers having charge of the balloting.
7. The chairman of the meeting shall preserve
for a period of one week both the nomination and
election ballots. Should an appeal be made to
the president within seven days in regard to the
validity of the nomination or election, upon a
request in writing- signed by twenty-five employes
present at the meeting, the chairman shall deliver
the ballots to the president of the company for
recount. Should no such request be received
within that time the chairman shall destroy the
ballots.
8. At annual meetings for the election of rep¬
resentatives, employes may consider and make
recommendations concerning any matters pertain¬
ing to their employment, working or living con¬
ditions, or arising out of existing industrial rela¬
tions, including such as they may desire to have
their representatives discuss with the president
and officers of the company at the annual joint
conference of the company’s officers and employes.
1. To facilitate the purposes herein set forth,
the camps of the company shall be divided into
five or more districts, as follows: The Trinidad
District, comprising all mines and coke oven
plants in Las Animas County; the Walsenburg
District, comprising all mines in Huerfano
County: the Canon District, comprising all mines
in Fremont County; the Western District, com¬
prising all mines and coke oven plants located
on the Western Slope; the Sunrise District, com¬
prising the iron mines located in Wyoming.
2. District conferences shall be held in each of
the several districts above mentioned at the call
of the president, at places to be designated by
him, not later than two weeks following the an¬
nual election of representatives, and at intervals
of not more than four months thereafter, as the
operating officers of the company, or a majority
of the representatives of the employes in each of
the several districts, may find desirable. The pur¬
pose of these district conferences shall be to dis¬
cuss freely matters of mutual interest and con¬
cern to the company and its employes.
3. At the district conferences the company
shall be represented by its president or his repre¬
sentative and such other officials as the president
The Document Read at the Recent Meet¬
ing of the Financier and His Employes Is
Printed and 'Distributed — An Extract of
the Provisions.
may designate. The employes shall be represented
by their elected representatives. The company’s
representatives shall not exceed in number the
representatives of the employes. The company
shall provide at its own expense appropriate
places of meeting for the conference.
4. The district conferences shall be presided
over by the president of the company, or such
executive officer as he may designate.
5. The first district conferences held in each
year shall select the following joint committees
on industrial relations for each district:
(a) Joint committee on industrial cooperation
and conciliation : to be composed of six members.
(b) Joint committee on safety and accidents: to
be composed of six members.
(c) Joint committee on sanitation, health and
housing: to be composed of six members.
( d) Joint committee on recreation and educa¬
tion : to be composed of six members.
6. In selecting the members of the several joint
committees on industrial relations, the employes’
representatives shall, as respects each committee,
designate three members and the president of the
company or his representative, three members.
11. In addition to the district conferences in
each of the several districts, there shall be held
in the month of December an annual joint meet¬
ing, at a time and place to be designated by the
president of the company, to be attended by the
president and such officers of the company as he
may select and by all the employes’ representa¬
tives of the several districts.
There shall be on the part of the company and
its employes a strict observance of the federal
and state laws respecting mining and labor and
of the company’s rules and regulations supple¬
menting the same.
The scale of wages and the rules in regard to
working conditions shall be posted in a conspicu¬
ous place at or near every mine.
There shall be no discrimination by the com¬
pany or by any of its employes on account of
membership or non-membership in any society,
fraternity or union.
The right to hire and discharge, the manage¬
ment of the properties, and the direction of the
working forces, shall be vested exclusively in the
company, and, except as expressly restricted, this
right shall not be abridged by anything contained
herein.
There shall be posted at each property a list of
offenses for commission of which by any employe
dismissal may result without notice. For other
offenses, employes shall not be discharged without
first having been notified that a repetition of the
offense will be cause for dismissal. A copy of this
notification shall, at the time of its being given
to an employe, be sent also to the president’s
industrial representative and retained by him for
purposes of future reference. Nothing herein
shall abridge the right of the company to relieve
employes from duty because of lack of work.
Where relief from duty through lack of work be¬
comes necessary, men with families shall, all
things being equal, be given preference.
Employes shall have the right to hold meetings
at appropriate places on company property or else¬
where as they may desire outside ’Of working
hours or on idle days.
Employes shall not be obliged to trade at the
company stores.
As provided by statute, miners have the right
to employ checkweighmen.
Subject to provisions hereinafter mentioned,
every employe shall have the right of ultimate
appeal to the president of the company concern¬
ing any condition or treatment to which he may
be subjected and which he may deem unfair.
It shall be the duty of the president’s indus¬
trial representative to respond promptly to any
request from employes’ representatives for his
presence at any of the camps and to visit all of
them as often as possible, but not less frequently
than once every three months.
Before presenting any grievance to the presi¬
dent, the president’s industrial representative, or
other of the higher officers of the company, em¬
ployes shall first seek to have differences or the
conditions complained about adjusted by confer¬
ence, in person or through their representatives,
with the mine superintendent.
Where the president’s industrial representative
or one of the higher officials of the company
fails to adjust a difference satisfactorily, upon
request to the president by the employes’ repre¬
sentatives or upon the initiative of the presi¬
dent himself, the difference shall be referred to
the joint committee on industrial cooperation and
conciliation of the district and the decision of thfe
majority of such joint committee shall be binding
upon all parties. . ,
Should the joint committee on industrial coop¬
eration and conciliation to which a difference may
have been referred fail to reach a majority deci¬
sion in respect thereto, if a majority of its mem¬
bers so agree, the joint committee may select as
umpire a third person, who shall sit in conference
with the committee and whose decision shall be
binding upon all parties.
To protect against the possibility of unjust
treatment because of any action taken or to be
taken by them on behalf of one or more of the
company’s employes, any employes’ representative
believing himself to be discriminated against for
such a cause shall have the same right of appeal
to the officers of the company or to the joint com¬
mittee on industrial cooperation and conciliation
in his district as is accorded every other employe
of the company. Having exercised this right in
the consecutive order indicated without obtaining
satisfaction, for thirty days thereafter he shall
have the further right of appeal to the industrial
commission of the state of Colorado.
The president’s executive assistant, in addition
to other duties, shall, on behalf of the president,
supervise the administration of the company’s
policies respecting social and industrial better¬
ment.
In the discharge of his duties the president’s
executive assistant shall from time to time confer
with the several joint committees, on industrial
co-operaion and conciliation, on safety and acci¬
dents, on sanitation, health and housing, and on
recreation and education, appointed at the annual
joint conferences, as to improvements or changes
likely to be of mutual advantage to the company
and its employes.
In addition to consulting, from time to time, the
several joint committees or their individual mem¬
bers, the president’s executive assistant shall be
the chairman of a permanent advisory board on
social and industrial betterment.
The advisory board on social and industrial
betterment shall be composed of such of the com¬
pany’s officers as the president may designate.
The advisory board shall meet at least once in
every six months, and may convene for special
meetings upon the call of the chairman.
Improvements respecting social and industrial
betterment shall, after approval by the president,
be carried out through the regular company or¬
ganization.
In camps where arrangements for doctors and
hospitals have already been made and are satis¬
factory, such arrangements shall continue.
In making any new arrangement for a doctor,
the employes’ representatives in the camps con¬
cerned, the president’s executive assistant and the
chief medical officer shall select a doctor, and en¬
ter into an agreement with him, which shall be
signed by all four parties.
The company shall publish, under the direction
of the president’s executive assistant, a periodical
which shall be a means of communication be¬
tween the management, the employes and the pub¬
lic, concerning the policies and activities of the
company.
Active operation of their 9,200 acre coal tract
along the Ohio river in Marshal and Wetzel
counties. West Virginia, will be taken up at the
next annual session of the Whetstone Coal &
Coke Company, it was decided at the annual
meeting of the stockholders. The holdings of
the company are located along the Ohio river
and occupy an advantageous position for ship¬
ment to foreign countries, which is just now
forming a large part of West Virginia coal sales.
About twenty-five stockholders from Pittsburgh,
Blairsville and Uniontown attended the meeting.
Board of directors for the year were elected as
follows: William G. Fletcher, Blairsville;
Andrew Brown, Fayette City; R. W. Dawson,
Daniel Sturgeon and A. D. Williams, Union-
town. At a meeting of the board directly fol¬
lowing the stockholders’ session, Mr. Sturgeon
was chosen president ; Mr. Dawson, vice-presi¬
dent, and Mr. Williams, secretary.
No. 20]
391
THE I?LA(^K DIAMOND.
Maintenance of Output at Large Long-wall Mines
The St. Paul Coal Company’s mines, located
at Granville and Cherry, Ill., are in the northern
Illinois coal field and in what is locally known as
the third vein, hut geographically, as number two
seam. As all of the output is used for fuel by
the Chicago, Milwaukee & St. Paul Railway Com¬
pany the mines are run at practically full capac¬
ity all of the time. This is a large factor in the
economic operations of a long wall mine and as
it also enables us to hold men who, if work were
not steady, would not stay we are able to build
up a good organization and maintain it.
The output of both mines has increased stead¬
ily and uniformly. The coal averages about
three feet three inches in thickness and is over¬
laid by a bed of soapstone, varying in thickness
from 0' to 12'. Next above the soapstone is a
bed of black slate. Under the coal we usually
have a clay mining, but at times this is replaced
by a sandstone, in which case the men usually
mine in the soapstone above the coal.
The mines are developed on the forty-five de¬
gree longwall system ; five main gangways each
side of the bottom lead away from one another
by forty-five degree angles. This makes the
angles between the extreme right and the extreme
left gangway 180 degrees. Off these five main
gangways cross-roads are driven every seventy-
live yards, right and left, at forty-five degrees.
Off these cross-roads rooms are driven at forty-
five degrees and are so spaced that each will have
a working face of forty-two feet.
With hand mining the working force pro¬
gresses about one foot for every working day
and as the face is roughly circular the rate of
increase of the output of a longwall mine bears
a fixed ratio to the increase in diameter of the
working face. Assuming a progress of one foot
a day, working places at present are increasing at
the rate of about thirty-seven a year or the out¬
put is increasing at the rate of about 185 tons a
day.
The best results are obtained if all working
places progress as uniformly as possible. Mining
conditions are about an average or possibly a lit¬
tle below the average and in order to reach and
maintain the maximum output, one must neces¬
sarily have a good organization and in selecting
the various men for the different positions con¬
siderable knowledge of human nature is required.
It is also necessary to treat them with fairness
and consideration, in order to hold them ; never
promising anything that cannot be or will not be
given, and if they are told to do something they
should be made to do it. Discipline and order
must be maintained at all times. It is a consid¬
erable problem to get the right man in the right
place and to keep him there and a great deal of
patience and watchfulness is required.
All haulage is done with mules. The gathering
animals bring the coal from the face to the ten
main partings or lyes, one on each of the ten
main roads, located about 2,000 feet from the foot
of the shaft. The outside teams, mostly three
and four spike or tandem teams, take the trips
from the lyes to the bottom. This outside haul¬
age at Granville is approaching a stage now
where we believe a saving may be effected by in¬
troducing some form of mechanical haulage.
The bottom is double tracked on each side of the
shaft. Each bottom is capable of holding about
twenty-five loaded and twenty-five empty pit cars.
We have underground fireproof barns, one on
each side of the shaft at each mine and each barn
has a capacity of about forty animals. At Gran¬
ville at the present time are about seventy mules
and at Cherry about sixty-five.
The Granville shaft, sunk in 1904, is 497 feet
deep from the tipple floor to the bottom of the
coal seam. One car at a time is hoisted by Litch¬
field 24x42 first motion hoisting engine with an
eight foot drum. The boiler plant consists of
three Marine type and three Erie City horizontal
return flue boilers of 150 horsepower each. A
Nicholson engine stop and a Humble detaching
hook prevent overwinding and excessive hoisting
speeds at starting or stopping with men or with
coal. The average output is about 1,700 tons in
eight hours, which is practically the hoisting ca¬
pacity. We have averaged for three months 2.,19
cars per minute for every working minute in the
day, making no deductions for men trips. As we
had reached our hoisting limit several years ago,
the only way to increase our output without ex¬
tensive changes in the shaft or tower, necessi¬
tating a shut down, was to get more coal on each
car hoisted. This was done by improving the
grade and making the roadways higher, so that
now we get an average car of over 3,800 pounds
of coal net, and occasionally a car weighing 5,000
pounds net. As our pit cars level full hold thir¬
ty-seven feet, one can get a fair idea of the top
that must be put on this car, which is six feet
long, three feet wide and two feet high, to hold
5,000 pounds of coal.
About every fourth car hoisted is a car of rock.
To keep the rock, which needs to be hoisted,
down to a minimum, is one of our great problems
and with the present method of hand mining there
seems to be no way of getting around it. 'This
rock is produced by the undermining of the coal,
also by grading and brushing the roads, and by
cleaning up falls on the roads and at the faces ;
and represents surplus rock after all possible has
been stowed away in the gob at the working
places. No machinery is required to handle the
cars at the bottom of the shaft. Two cagers
and a spragger on each side are employed. After
the loaded car has reached the tipple landing, it
is bumped off the cage by a steam ram. The coal
is dumped on a Phillips cross-over dump, while
the rock is run over the Phillips tipple and
dumped into the rock chute at the lower end of
which the rock is loaded into a specially designed
five ton rock car, which is pulled up a twenty-
five degree incline and dumped automatically by
means of a trip between the rails at the upper
end of the rock dump. This trip releases two
side doors thus discharging the rock. The side
doors are automatically locked again as the rock
car slips into its berth at the foot of the incline
under the gate of the rock chute.
On the tipple floor we employ one eager to
operate the steam ram and transfer tables, two
coal dumpers, two oilers and two or three rock
men. The coal is dumped into two hoppers sus¬
pended from scales and weighed in a cabin built
directly under the tipple floor. The emptv cars
are returned from the Phillips dump to the shaft
by means of a gravity kick-back, running on a
transfer table after being oiled. This transfer
table raises the car vertically about five feet and
transports it horizontally about six feet to a posi¬
tion directly opposite the shaft mouth ready to
be pushed on a cage by the steam ram. There
are two such transfer tables and rams, one oppo¬
site each cageway.
Only two sizes of coal are made, lump and
screenings. The screenings are shipped to a coal
washer while the railroad takes all of the lump.
At Granville the screenings consist of all coal that
goes through a seven-eighth inch bar screen and
at Cherry all the coal that goes through a three
inch circular opening shaking screen. A con¬
siderable portion of the lump coal is loaded in
closed cars and a gravity box car loader is used
for this purpose.
We employ 850 men and have about 430 work¬
ing places at Granville, while at Cherry, with
practically the same mining conditions, we employ
825 men and have 320 working places.
At Cherry the hoist is 523 feet from the tipple
floor to the bottom of the coal seam and a tan¬
dem cage is used, hoisting two cars at a time.
The hoisting equipment, boiler house and machine
shop are practically the same as at Granville.
The output from the spring of 1910 has not yet
reached the limit of its hoisting capacity, which
we estimate around 2,400 tons of coal a day with
Its proportionate share of rock. Assuming an
average yearly increase of 185 tons of coal a day
per year, it would require about four and one-
third years to gain the additional 800 tons daily.
E. F. Brenn,
Chief Engineer of Mines, St. Paul Co.
The Anthracite Tax.
H.\rrisburg, P.A., November 10— Auditor Gen¬
eral Powell has not changed his mind on the
proposition to place the escheat laws of the state
into motion to collect the amount that has been
charged by coal companies in anticipation of pay¬
ment of the two and one-half per cent tax on
anthracite.-
A notice was issued the first of the week by
the Philadelphia & Reading Coal & Iron Com¬
pany that it had records of all money collected to
pay the tax and that refunds would be made “as
soon as the state signified that collection would
not be attempted.” The Temple Coal Company
of Scranton also has declared that its clerks are
busy on its books and collections of the state
tax would be returned to customers.
The auditor-general holds to his contention
that there must be shown that the money has
been paid back to the original persons from whom
it was derived — the consumers — else the state law
allowing a process of escheatment can and will
be placed in effect.
He has filed information against 138 companies
and has placed the matter before Attorney-Gen¬
eral Brown, who, so far, has not offered an opin¬
ion on this new process of gathering a tax from
a law declared unconstitutional by the highest
tribunal of the state.
A New Silo Pocket.
An efficient type of silo coal pocket that has
recently come to the notice of The Black Dia-
-MOND is that of the Henry M. Tuttle Company
at Bennington, Vt., and which is shown in the
accompanying illustration.
This pocket consists of a battery of four silos,
three of which are twenty feet in diameter by
thirty-four feet high, the fourth one being only
sixteen feet in diameter, but of the same height
as the other three. The storage capacity of the
plant is about 1,500 tons.
The coal is elevated from the car into the bins
An Efficient Storage Plant.
by being dumped into a steel lined concrete hop¬
per and sliding into a steel boot. It is then ele¬
vated by continuous buckets to a point over the
liins, from which it is distributed both ways
through several chutes and valves, being lowered
gently to the coal in the different bins by “zig¬
zags” or coal ladders. These zig-zags or coal
ladders are a series of projections or steps pro¬
truding out from both sides of the silo, the coal
falling first on the one, then to the one below it,
and so on down to the top of the pile. The power
is furnished by a ten horsepower electric motor.
The machinery for this plant was furnished by
The Gifford-Wood Company and the silos by
The Creamery Package Manufacturing Company.
Boston’s Coal Receipts.
Following are the receipts of anthracite and
bituminous at Boston for October and from Jan¬
uary 1 to October 31, 1915, together with com¬
parisons :
Dct.— , - - ^ - 1914 - : - \
Anthracite. Itituniinous. Anthracite. Bituminous.
Sea, dom. 143, jit 414,933 146,456 364,075
Sea, for . 34',599 . 30,850
Kail - 11,305 2,945 14,574 3,143
Totals.. 154,919 453,477 161,030 388,068
From January 1st —
Sea, dom. 1,267, 294 3,917,158 1,468,305 4,128,342
Sea, for . 347,498 . ' 153;767
Rail - 134-,88G 64,425 162,190 45,130
Totals. .1,402,180 4,329,081 1,630,501 4,327,239
Articles of incorporation of the Northwestern
Coal & Coke Company were filed Tuesday with
the secretary of state of Colorado. The company
will operate in Routt county, with its principal
office at Steamboat Springs. Harry Laverty, Jack
Lewis, Clay Monson, D. J. Davies, James A.
Brobeck, Charles Baird and R. A. Bareuther are
named as directors. The company is capitalized
at $100,000.
H. H. Lineaweaver & Co. held their monthly
salesmen’s meeting at their New York office on
Saturday afternoon, and five salesmen from this
territory attended, together with Mr. Crane, New
York manager. They first assembled and liad
dinner, after which they returned to the office, and
liad a business di.scussion. Selling experiences
were exchanged and the selling end of the game
was discussed in general. The market and its
future condition was also discussed. They ad¬
journed about four o’clock.
392
THE KLACK DIAMOND
[Novem'ber 13
Auto Truck Question Again When Does It Pay?
The ever present iiupiiries in a retail yard are:
"Can I use an ante truck to advantage? If I
can, what kind and size should I buy? What
equipment shall 1 use with it ? W hat sort of
loads shall 1 give it ?”
The best answer, of course, is that made by deal¬
ers who have experience. Hut while they talk
freely, they make no recommendations. They
say merely :
“Use your own judgment, hit the car to your
own conditions.”
In detail, dealers of experience make some
interesting suggestions, these being in respon.se
to a letter of inquiry sent out some time ago. W^e
(piote :
Edward 1. Rice, Syracuse, N. Y. — “During the
past three years we have used two ton Pack¬
ard trucks and find them a great help to our busi¬
ness ; in fact, we hardly know how we could get
along without them.
“W'e do not thifik you can advise and recom¬
mend trucks to your subscribers, as conditions
vary greatly in different localities, and each dealer
must look into the matter and form an opinion
of his own; in fact, he should use his own judg¬
ment, taking everything into consideration.”
Rathhun & Kraft, Battle Creek, Mich. — “When
full loads can he drawn and with reasonably good
places to unload, we think trucks might be used
to advantage.”
Columbia Brick & Coal Co., Takoma Park, D.
C. — “W’e have been using a one ton and a two
ton Wilcox truck for two years. W’e are very-
well satisfied with both, but have had the best
results from the one ton truck. In addition to
trucks we have nine horses. When we add to
our equiiiment it will he trucks and not horses ;
hut we w'ould not dispense with any of our horses
to replace them with trucks.”
C. G. Martin Coal Company, St. Paul, Minn. —
“W’e only operate at the present time one truck
and have not got our records in such shape that
we are able to give any definite or reliable infor¬
mation, but from casual observation of our opera¬
tions with same, 1 do not believe there is much
saving for a company in operating only one truck,
over the cost of team operations.”
, Van Tassell & Draper, Cheyenne, W’yo. — “W’e
have had a motor truck for the past year and feel
that it has been a paying investment. W’e would
not be without one and in time will add others,
as it costs less to run a truck than it does to feed
horses and deliveries can be made much quicker.
Rush orders at the close of the day can be han¬
dled much quicker with a truck than with a team
that has been working hard all day, as the truck
never gets tired and it is as fresh at night as
when it started in the morning, which is quite
an item.”
Conditions Must Govern
Brosius & Smedley Company, W ilmington, Del.
— “So many features enter into the consideration
of this question that it cannot he answered with¬
out reckoning with these conditions. Briefly
speaking, the city coal dealer with a good driver
and a reasonably fair tonnage, or if he handles
other commodities in connection with his busi¬
ness, will undoubtedly find it will pay. Further¬
more, he will soon find it compulsory to install
a truck to keep up to the growing requirements
of trade. Likewise in the country, if a dealer is
located where a fairly good system of improved
roads exist, we would say yes. To the dealer
more isolated, with nothing but dirt roads to haul
over, we would advise sticking to the horses.”
Broadway Coal & Coke Comi)any, Memphis,
Tenn. — “WT use motor trucks principally in our
ice business. W’e haul some coal with them dur¬
ing the winter season, hut the most of our coal
is delivered in wagons and carts drawn by horse
I)ower. The handling of coal in trucks econom¬
ically depends entirely upon local conditions. W’e
have not found it, thus far, of advantage to han¬
dle all of our product in motor trucks.”
Wilcox & Ziegler, Baltimore, Md. — “W’e have
found from practical experience that the small
two ton unit auto truck is undoubtedly a paying
proposition for coal merchants. The trucks of
larger capacities, if conditions are favorable, are
also more economical than horses, but in our case,
having used them principally for long hauls with
abominable road conditions, on work requiring
much labor and consequently losing much time,
we are not so favorably disposed toward them.”
E. L. Carpenter, Salt Lake City, Utah (Castle
X'alley Coal Company, Consolidated b'uel Com¬
pany, Black Hawk Coal Company, Panther Coal
Company) — “Our experience with motor trucks
Retailers From Many Cities Have Their
Experience — Many Ideas Are Given But
All Agree That Circumstances Alter
Cases — A Few Opinions.
has not been very favorable to their adoption in
this locality. Each retail coal dealer will have to
settle that question for himself. If the dealer is
in a ])aved district with coal holes in the side¬
walk, or has a large sacked coal business, or has
a large contract with a long haul over good roads,
such as obtain in Los Angeles, then he should
decide in favor of motor trucks. If, however, he
has a large domestic trade where he has to de¬
liver to the rear of dwellings through narrow,
unpaved alleys, he had better pin his faith on
horseflesh.
“As this question is one of environment, we
hesitate to answer. Our locality is certainly not
a motor truck one at the present time, hut chang¬
ing conditions may remove the present objections
so that a certain locality, adapted only for teams
today, may be suitable for trucks next year.”
Extends Selling Zone
L. Brizzolara & Son, Inc., San Francisco, Cal.
—“Our truck has been giving very good service,
especially for long hauls averaging about equal
in tonnage to three 3-ton wagons per day and
enabling us to compete for suburban tonnage
which we were unable to reach with teams. We
do not find the truck to be profitable for short
hauls in this city account congestion of the busi¬
ness section and the hills.”
R. P. & W. E. Starr, Ltd., St. John, N. B., F.
P. Starr, President. — “W'e have not found motor
trucks a profitable venture. There is, doubtless,
some indirect benefit as an advertisement and in
the rush season we find them very convenient,
but they are not, in our experience, a paying
proposition.
“Saint John is a very hilly city and the streets
are rough and very hard on tires ; in addition to
which gasoline is more expensive here than where
you are and hay and oats are much cheaper with
us than in Boston and New York, all of which
tells against the motor truck and in favor of the
horse drawn vehicle.
“Another point is that the trucks have to be
laid up during three months in the year, as they
cannot he successfully run in the snow.”
Hampton Coal Company, Salt Lake (uty, LTah.
— “We couldn’t make them pay on bad roads.
They might be all right with good roads.”
Olney & Payne Bros., Pawtucket, R. I. — “Much
depends upon the amount of tonnage handled and
the local conditions.
“If the dealer has a good volume of business
and good hauling conditions, we believe he would
find it advantageous to install motor trucks, espe¬
cially so if it was a question of whether he should
renew his horse-drawn equipment or use motor
trucks. With proper care and supervision we
believe that it would pay in most cases.”
Pacific Fuel Company, Tacoma, Wash. — “W’e
find the trucks more advantageous in our coun¬
try, more especially in the winter season. There
are days when we cannot navigate on our asphalt
pavements with horses. This is the most critical
time of our business. We are well pleased with
our trucks, but of course we have need of horses
also, as they will go in places where trucks will
get stalled.”
Must Keep Moving
Pittmans & Dean Co., Detroit, Mich. — “W’e use
the trucks for long hauls only. The (juestion of
the value of trucks depends entirely on how con¬
tinually they can be used, and it seems to the
writer as though no two institutions handled
them exactly alike. W hat might be satisfactory
to us would not be to others and vice versa.”
Portsmouth Coal & Ice Company, Portsmouth,
Va. — “W'e have an auto truck, but so far have not
used it in our coal department, as the wheel base
is too long for our scales. Do not find it a
money saver in the ice business, but local condi¬
tions may have much to do with it, as there are
several bridges that are unsafe for a heavily
loaded truck and therefore our sphere of opera¬
tion is somewhat restricted.”
E. J. Babcock, Boston, IMass.— “I have two
five-ton Pierce-Arrow trucks and they do not pay
as compared with teams. They are of good serv¬
ice when I am busy and they do not cost anything
when idle. I do not think they are a success in
a small business of 30,()()0 tons, but they are a
convenience during rush times.”
Enterprise b'uel Company, Baltimore, Md. —
"We have been using a three-ton Gramm truck
for the last five years and regret to advise th^t
they have been a source of considerable expense,
rather than profit. It may be that the truck of
last year might prove a profitable investment to
coal dealers, but we are perfectly willing to let
the other fellow try the experiment this time.”
O. F. Williamson, Media, Pa. — “I think the
average retail yard in small towns or in the coun¬
try could use auto trucks to advantage, but think
the one and one-half or two-ton truck the best
size.”
Geo. C. Buckley Company, Menlo, Iowa. — “1
believe in cities where streets are paved it will
l)ay to run motor trucks for coal, but on dirt
roads you can not run them in muddy times and
our experience is that it costs too much to use
trucks. W'ould rather make sure by using team.”
1 1. (3. Seiffert Lumber Company, Davenport,
Iowa. — “Lbiless the roads or streets are paved or
macadamized the trucks are no good. W’e use
our trucks mostly for our lumber deliveries and
haul very little coal. It depends a great deal on
the roads and of course on the amount of busi¬
ness. For large contracts and quick delivery
trucks pay.”
Jagels & Beilis, Hoboken, N. J. — “From our
experience we have found that the cost per ton
has been a trifle more than we have been able to
deliver coal for with horses. W'e feel, however,
that if it were possible for a coal company to
make its entire transportation system by auto
that the cost could be materially reduced, but this
company has hesitated to adopt that method of
delivery for the reason that during heavy snow¬
storms the automobiles do not give reliable serv¬
ice.”
Atlantic Ice & Coal Corporation, Athens, Ga. —
“W’e find trucks are profitable where the towns
and cities have well paved streets. We are not
able to use them to much advantage at this branch
owing to the fact that we have many unpaved
long red hills to travel, but in comparatively level
paved towns we believe it is the best solution of
prompt and economical delivery.”
The Klages Coal & Ice Co., .Akron, Ohio. — “We
have some trucks, but use them most of the time
to deliver ice to the drivers on their various
routes and to supply large wholesale customers.
W'’hen it comes to using them in the retail coal
business, from our experience, they are not a
thorough success, as we deliver most of the coal
into the cellar, and it is very hard to get in and
out of yards with a truck. In territories where
the coal is dumped on the street they might be
more successful.”
Bickett Coal & Coke Company, McCormick
Bldg., Chicago, Ill. — “We have a great many
large steam contracts and if the plant is so situ¬
ated that delivery can be made by trucks we find
it very much more satisfactory and less expensive
than when delivered by wagon. We have also
used trucks in our yard for the delivery of do¬
mestic coal — finding it more economical than
wagon delivery, especially for long hauls.
“However, when delivery is made in ton lots
within a certain radius of our yard we use
wagons.
“Another thing must be taken into considera¬
tion and that is the condition of the streets and
alleys where deliveries are to be made. Paved
streets are necessary in using trucks ; otherwise
they are not successful during the winter months.
“We might also add that we have just leased a
large piece of property on the south side of the
city of Chicago and we propose to use trucks en¬
tirely for delivery from this yard. It is located
in a section of the city where deliveries are mostly
made from the main streets, either in bags or by
dumping in the street and wheeling in. For such
service we certainly can recommend them.”
A cable from Cardiff on Monday, November
8th read as follows: “The Rhondda district
miners, numbering 50,000, have decided to ten¬
der a fortnight’s notice on November 15 that
they will stop work until all the men employed
in the collieries join the South Wales Miners’
Federation. Official notice has been posted
in all coal mines stating that such a large
number of miners have joined the army that
‘the supply of coal, which is of vital national
interest, is seriously affected. Hereafter coal
miners offering themselves as recruits will be
accepted only on condition that they continue
to work in the mines until called upon.”
No. 20]
393
THE BLACK DIAMOND.
Protest Against Raise in Powder Prices. Appeals Anthracite Decision.
A meeting was held in the offices of the Old
Ben Mining Corporation, Chicago, November 8th,
for the purpose of conferring with representa¬
tives of powder companies regarding the recent
substantial advances in the price of explosives
and to secure from them definite data as to the
cause of these advances and tangible evidence of
a sort that would warrant such extra cost to the
operators during the period of a wage scale with
the miners, who under the terms of their contract
cannot be compelled to pay a higher price for
explosives which they use in the mining of coal.
The sentiment of the operators in connection
with the situation was clearly set forth in the
following resolution passed at a meeting held
earlier in the day :
'Tn view of the thorough knowledge of the man
ufacturers of explosives with reference to the
contract relationship existing between Illinois coal
operators and their workmen ; that under the
terms of such contract the price of explosives
cannot, without the consent and agreement of the
miners, be advanced prior to March 31, 1916 ; that
it is practically impossible to secure such agree¬
ment prior to date specified, that permissibles, on
account of their relative effectiveness as com¬
pared with black powder, are already being pro¬
vided to the miners at approximately exact cost
to the operators ; and finally in view of the sub¬
stantial volume of permissible explosives used by
the Franklin county operators, it is the sentiment
of these operators that the manufacturers should
not feel warranted in advancing the price on such
permissibles except, AND ONLY in the event
that their protection of former prices contem¬
plates direct loss on basis of production cost and
without reference to whether or not their profit
would be impaired or entirely yielded. That an
exceptional and unusual condition has increased
the demand for explosives does not in the belief
of the coal operators justify the manufacturers
of explosives in vacating existing contracts or
waiving usual notice of price advance and insist¬
ing on previous profit at the sole expense of coal
operators, when admittedly the use of such per¬
missible explosives is compulsory and unavoid¬
able if accident and possible disaster be avoided
and when the period during which such indul¬
gence is sought is so brief — five months.”
L. G. Binkley, vice-president of the Egyptian
Powder Company, acting as spokesman for the
several powder companies represented, spoke at
length regarding the rapid increase in the cost of
various ingredients entering into the several
kinds of explosives made by his and other com¬
panies. The unusual conditions, brought about
by the war abroad, and the embargo placed by
various foreign countries on the movement of
sweet glycerine and other ingredients and the pur¬
chase in this country of glycerine for shipment
abroad, was carefully called to the attention of
those present and the further statement made that
had it not been for certain existing contracts held
by the manufacturers of explosives under which,
and until recently, they had been able to secure
the majority of their material requirements at
normal prices, their action in advancing prices
would have been taken prior to the present time.
It was definitely stated in the general discus¬
sion by the powder men that it was not the pur¬
pose of any powder company to vacate any of
their existing contracts with coal companies until
such contracts had expired and that it was their
purpose only to advance the price to those whose
contracts had expired and who were now seeking
renewal of arrangements for the provision of
their supply.
Representatives of the miners, each of whom
spoke on the subject, insisted that no change in
the powder price to miners, within their belief,
was possible without the calling of a special con¬
vention of their organization for the purpose of
considering the subject and, further, that it was
their belief their organization would not agree
to any change of price during the period of wage
agreement.
general discussion of the whole subject de¬
veloped, on the part of the operators, a continu¬
ance of the precise sentiment set forth in their
resolution presented at the beginning of the meet¬
ing, it being their definite belief that powder com¬
panies had not shown that the previous price on
explosives could not be protected throughout the
period of the present wage agreement (and until
March .31, 1910) without actual loss, except profits,
to the powder companies.
As the final action of the meeting it was
moved, seconded and favorably accepted by min¬
ers and operators, that a committee be appointed.
composed of two operators, two miners, and two
powder representatives for the purpose of per¬
mitting the powder companies in a smaller meet¬
ing to make clear to both the operators and min¬
ers the exact status of the situation and the
necessity for continuance of advanced prices on
explosives and the factors that entered into the
advance in cost — so that at the time of the next
conference between the miners and operators, for
the formation of a new wage scale, it would be
possible for the parties at interest — operators,
miners, and powder companies, to act intelligently
and provide such contract conditions as would be
thoroughly understood, agreeable, and acceptable
to all parties concerned.
On account of the refusal of the powder repre¬
sentatives to vote for such a committee without
referring the whole matter to their respective
principals, it was decided that arrangements
should be made for the meeting of such a com¬
mittee within two weeks from the date of this
present meeting, with the understanding that on
or before the expiration of such period the sev¬
eral powder companies would indicate their will¬
ingness to send appropriate representatives for
the purpose of studying this general situation aft¬
er the fashion and for the reasons above stated.
Small Activities.
Cleveland News Notes.
W. T. Watson, Jr., general manager of the
hairmont-Cleveland Coal Company, Fairmont,
W. Va., was in the city this week.
During the month of October 257,640 tons of
coal were loaded at the docks in Conneaut. Coal
loaded over the machines at the Ashtabula docks
during the month of October amounted to 419,377
tons. During the same time 1,201,240 tons of Ore
were received, which is claimed to give this town
first place in Ohio as an ore receiving port.
It is said that the increased tariffs on coal for
western shipment from West Virginia will be
filed with the Interstate Commerce Commission
1)y the Baltimore & Ohio, Norfolk & Western
and Chesapeake & Ohio railroads on November
15. They will become effective a month later,
and will increase the differential between the
Ohio and the West Virginia rates.
Detroit News Notes.
Ford R. Cate of the Cate-Churchman Coal
Company is back from a trip through Kentucky
and Ohio.
James P. Cummiskey, president of the Ohio &
Michigan Coal Company, has returned from a
trip in Ohio.
A. J. Schrader has rejoined the Pittsburgh and
New Pittsburgh Coal Companies and is again
covering his old territory of Ohio and Indiana.
Mr. Schrader spent the summer and part of the
spring with the New York Coal Company, Michi¬
gan being his territory.
With several slight modifications of the
measure first offered. Highland Park’s village
council has approved the ordinance limiting the
percentage of moisture that may be contained in
coal and coke sold in the village. The maximum
for soft coal is fixed at seven per cent, on hard
coal at three per cent, and on coke at eight per
cent. An ordinance along somewhat similar lines
is said to be under consideration by Detroit’s
sealer of weights and measures.
Indiana Local News.
The J. R. Morris Coal Company, Indianapolis,
capital $10,000, has incorporated there. Directors,
J. R. Alorris, Harry Smith, Edward Crowley.
Dr. August F. Knoefel, Terre Haute, president
of the American Mine Safety Association and
head of first aid department of the Indiana Op¬
erators’ Association, has gone to Washington to
consult the Bureau of iMines. He will a.sk the
latter to extend its investigation in Indiana and
to increase the government’s rescue equipment
in this state.
In acknowledgment of his services in conceiv¬
ing and promoting the recent successful first aid
meet at Bicknell, the joint committee in charge
of that affair voted Dr. Knoefel a gold medal.
The committee, made up of representatives of the
miners, operators and business men of Bicknell
also voted to him the unexpected balance of the
money raised to defray the expenses of the
meeting.
Philadelphia, Nov. 12. — (Special Telegram.)
— Dealers and shippers expecting an immediate
refund of tax imposed on anthracite coal for
past two years will be compelled to wait until a
final decision is rendered. The attorney-general
of the state of Pennsylvania on November 11 filed
notice of an appeal from the decision of the su¬
preme court rendered October 28, declaring the
act unconstitutional.
Today’s Opportunity.
(Concluded from page 385.)
these men as fast as their education was com¬
plete.
The plan here outlined presents co-opera¬
tion in, I believe, its best light. F. S. Pea¬
body, one of America’s shrewdest coal men,
says it is a good plan but impractical. It does
m fact, assume a great deal in the matter of
government idealism and action. And, the
government has never been noted for its
steadfastness to a program, nor has it been
able to conceive and execute an idea in de¬
tail which requires so much hewing to a
given line.
What Must Be Done.
With government action unlikely for years
to come, because political attention is directed
elsewhere than to conservation, there is in
bituminous coal a big opportunity for a real
financier. In taking advantage of it, he can¬
not travel any of the beaten paths of con¬
solidation — first, because the best programs for
another industry would not touch the need in
coal, and, second, because public opinion will
not permit the duplication of any old device
or intention. Even so, the whole list of de¬
vices has not been used and a new one may
be found. For example, a compromise be¬
tween the old financial form and the proposed
governmental action is possible. It will win
both public and financial applause if an en¬
tirely different theory of control is used.
I shall not attempt here to outline what
program should be followed by the new finan¬
cier. In the first place, to do so would be a
bit presumptuous. In the second place, the
public print is no place in which to discuss
plans which must be still in a formative stage.
It is enough to say of the new financier and
of the future that all the devices necessary to
control the coal situation are now in prac¬
tical use. To group them into an effective ma¬
chine calls for only a master personality. See¬
ing the time is about ripe, I am convinced that
he will be found.
[This is a reproduction of a siiecial article written for
the New York' Annalist by the editor of The Black
Diamond, j
It is understood here that a hitch in the filing
of the new tariff, further increasing the differen¬
tial between West Virginia and Ohio coals by
fifteen cents, has developed and that there is a
possibility that the tariff will not be filed. While
at Cincinnati it has been impossible to verify
the story, it is taken for its full worth
by coal operators who have good sources of
information, that the Chesapeake & Ohio Rail¬
way Company has decided not to participate in
such a tariff. It is further understood that the
company officers made the decision at New York
a few days ago, but were in no hurry to let it
be known and that the reason for the decision is
that the road fears that such a restriction would
greatly reduce the volume of coal transporta¬
tion and that while the railroad would reap the
difference in rate per ton for the product trans¬
ported, it would lose a large volume of business
and in the end lose disastrously. This is exactly
what the coal operators of the state have claimed
and the investigations of the Chesapeake & Ohio
officials would seem to bear out the contention.
Coal operators are jubilant and it is reported
that the Baltimore & Ohio Railway and the Nor¬
folk & Western Railway will follow the decision
of the Chesapeake & Ohio Railway and refuse
to file any further advance.
The C. Reiss Coal Company is figuring on
rather extensive improvements on its coal dock
on the Superior side of the bay during the com¬
ing winter. At present the company has a mod¬
ern bridge on the outer end of the dock, but on
the shore end has old-fashioned machines. It is
proposed to build up the foundations and let the
liridge do the work of the whole dock.
[November 13
394
THE BLACK DIAMOND.
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Saturday, November 13, 1915.
INDEX.
Special Articles.
Pa.§e
Future of a Trouliled Trade — Today’s Opportunity.. 385
Big Shipbuilding Company Is Terming . 38t)
A New Type of Box Car Loader... . 386
Lehigh Valley Annual Report . 387
Satisfying the Miners . . 387
Koenig Trucks Make Branch Yards Unnecessary.... 388
Losing Money on Handling Coal at Retail . 388
Field of the Retail Dealer . 380
Details of the Rockefeller Plan in Colorado . 390
Maintenance of Output at Large Long-Wall Mines. . 391
The Anthracite Tax . 391
A New Silo Pocktt . 391
Auto Truck Question Again — When Does It Pay?. . 392
Protest Against Raise in Powder Prices . 393
Small Activities . 393
Appeals .Anthracite Decision . 393
Editorial . ^ . 394
New Steamers for Coastwise and Export Trade . 395
News Local to Chicago . 396
Association News . 396
Facts Which l^etermine Our Export Prospects . 397
Market Reports.
General Review and Chicago . 398
Pittsburgh and Cleveland . 399
Cincinnati, Birmingham and St. Louis....... . 400
Louisville, Detroit, Indianapolis and Twin Cities.... 401
New York and Buffalo . 402
Philadelphia and Duluth . 403
New England, Baltimore, Denver, Southwest and
Omaha . 404
Hocking Valley . 15
Let Sam Do It.
Everyone is talking about exporting
American coal. Every coal man wants
to do a little of it himself. We know
there is an ever-expanding market over
the ocean. We know there is an ever-
increasing production at home. The ex¬
tremes meet in that there is a demand
there and a supply here. The two should
get together. But between possibility
and accomplishment there is the stnh-
horn fact of ships. We have none. The
buyers have none. Those who own ships
have so many demands for them the sup¬
ply is not sufficient to go around. And
there you are.
The apparent need is to get shijis. The
best way to get them and to be sure
about it is for America to build them,
and to do it at once. But between the
evident logic of the situation and its
actual accom])lishment, there is a matter
of governmental attitude. The nation
wants to do nothing, seemingly, hut pass
laws. These arc not, so far, helpful of
business nor do they solve the problem.
Instead, they merely regulate the equip¬
ment of ships and look out for the wel¬
fare of sailors. These things are all right
in their places, hut they do not provide
ships. Indeed, it is said that they make
the profitable operation of ships impos¬
sible, as is shown by some withdrawals
of ships from our trade on the Pacific
coast. It is rather embarrassing to have
such things come up just now when there
is a real impulse toward an American
merchant marine and a need for it.
At this point J. A. Renahan, with his
customary acuteness, inserts himself in
the situation with a suggestion. He says,
in substance :
“The foreign business is as much a
concern of the nation as it is of the in¬
dividual — since the nation is merely the
individual in the aggregate, after all.
Therefore, the matter of supplying ships
is as much a national matter as it is an
indi\ idual matter. The thing to do, then,
is to ‘let Uncle Sam do it,’ to paraphrase
a common remark. That is, let the na¬
tion buy and operate the ships.
“There is a particular point here which
fits into the present situation. Under
national laws — for which Congress can¬
not shirk responsibility — it is unprofit¬
able to operate boats. Still, the Gov¬
ernment can operate them and may get
hack out of pocket cost. If indeed it
stood a loss it would he doing nothing-
more heinous than paying a subsidy to
itself. There can he no objection to that
since most nations pay subventions to
private companies. Surely there can he
no objection to it’ since the nation is al¬
ready in the carrying business, in hand¬
ling the parcel post matter. It sustains
a loss on that business. It might sus¬
tain a loss on the merchant marine also.
“Further, a firm hold by America upon
the coal trade abroad in future is depend¬
ent neither upon the equality of the coal
nor the price at the mines. These are es¬
tablished beyond dispute. It is depend¬
ent, however, upon the rates charged for
carriage and upon the fact that ships shall
he available at all times to make deliv¬
eries according to schedule. The nation,
by owning the ships, could provide the
regularity of delivery. By the same con¬
trol, it could also meet the competition
of foreign carriers. Thus it could pro¬
tect the American merchant marine from
slaughter a second time, even though in
doing so the nation stood a loss or had to
pay a subsidy to itself.”
The obvious conclusion, after reading
this rather searching analysis of the sit¬
uation is that the experience of the Gov¬
ernment while running these ships would
he highly instructive to Government of¬
ficials and might provide some informa¬
tion useful to Congress. The nation
would then have first hand information
as to the needs of a merchant marine and
the actual cost of getting it. The Gov¬
ernment would have a very clear idea to
what extent laws of a certain type are
helpful or distressing to shipping. Every¬
thing considered, the plan proposed by
Mr. Renahan should be tried out by the
Government.
No Ground for Pessimism.
America is still quite young in the mat¬
ter of exporting coal. For that reason
alone, there are many things which its ex¬
porters know about ocean transportation
conditions, practices and so on. A les-
.son which was learned (juite a while ago
by the shipping men on the Great Lakes
might now he learned to advantage by
coal operators on the Atlantic coast.
The I.ake shippers know that there is
a season for everything, especially where
boats are concerned. On the Lakes the
early part of the navigation season is de¬
voted to coal and ore movement. In the
late summer and fall months these have
to give way to a movement of grain. To¬
ward the end of the season the grain trade
has dwindled down to something like nor¬
mal volume ; then both coal and ore get
a chance for further movement.
It seems that something of the same
condition prevails on the ocean. In the
fall, there is quite a demand for grain
abroad and much of America’s crop is
moved. Then, too, there is a demand for
cotton and other goods of a seasonable
character. Thus, the world over, the
farmer moves his crop when he harvests
it and that has an influence on the sup¬
ply of ships on the ocean. During that
season, farm products take preference
over other things which can he moved
at any other time.
Our export figures in coal, although
they are not comprehensive enough yet
to establish this fact beyond a peradven-
ture, are still elaborate enough to indi¬
cate that the movement of coal must be
arranged to take place at some other time
than just when our grain and other farm
jirodncts are moving. We will take, for
example, the records of last year. In
September, or before the grain movement
was very heavy, the export coal move¬
ment was 620,000 tons. In October, grain
began to compete with coal for the sup¬
ply of vessels ; since grain was a preferred
commodity and paid a higher rate, coal
had to take what was left of ships. Thus
in October, the movement was only 340,-
000 tons, in round numbers. In Novem¬
ber and December the grain movement
had evidently increased still further be¬
cause the coal movement fell off. From
what we can gather from the figures,
farm stuffs and other things had pref¬
erence last year until well along toward
the end of March, when a gradual upturn
in coal movement began. Then, begin¬
ning with the first of April, the coal
movement doubled in volume and grew
steadily until in June when it was over
a million tons. For June, July and August
of this year, the coal movement exceeded
a million tons a month. This is very
easily explained by the fact that in the
late spring and summer months, there
was no demand for ships, practically
speaking, for grain movement. Thus the
available ocean tonnage could be used for
coal movement.
This same idea is carried out by the
September and October figures on move¬
ment of coal this year. We are in the
midst of another slump of coal movement
and are just about at the height of sea¬
son for grain movement.
In a word, grain and coal are competi¬
tors for the ocean-carrying capacity.
'Fhere is always enough boats to carry
some coal but there is not always, in all
season, enough to carry an enormous
quantity. The facts seem to indicate that
if coal men want to ship a large volume
of tonnage abroad, they had better ar¬
range to do it early in the spring and
summer season when vessels are plentiful.
This does not mean, however, as some
coal men have surmised, that the foreign
trade is a hopeless proposition on account
of vessels. It simply means that America
must conform to the known oceanic con¬
ditions and therefore arrange to_ ship her
coal when the vessels are available for
that purpose.
No. 20]
THE BLACK DIAMOND
395
New Steamers
Charles 'S. Thorne, president of the Pocahontas
Navigation Company, Inc., and vice-president of
the Pocahontas Consolidated Collieries Company,
Inc., and the Pocahontas Fuel Company, in re¬
sponse to a request for an interview, states ;
The S. S. “Virginia,” which was launched on
Saturday, October 23, and the S. S. “Jonancy,”
which was launched on Tuesday, November 9th,
with the S. S. “Bylayl,” to be launched about
December 1st, each 5,450 gross tons, constitute
the beginning of an important fleet of general
cargo freight steamships to be added to the
American merchant marine. These vessels are
owned and will be operated by the Pocahontas
Navigation Company, Inc., of which Charles S.
Thorne is president, located at No. 1 Broadway,
New York, and are being built by the New York
Shipbuilding Company at Camden, N. J.
The Pocahontas Navigation Company, Inc., is
a company associated with the Pocahontas Con¬
solidated Collieries Company, Inc., and the Poca¬
hontas Fuel Company, of which Isaac T. Mann is
president, and in pursuance of the progressive
policies of Mr. Mann’s companies, the vessels of
the Pocahontas Navigation Company, Inc., have
primarily been constructed to facilitate the ocean
transportation of “Original Pocahontas” coal
from the Lambert Point piers of the Norfolk &
Western Railway at Norfolk, Va., sold and pro¬
duced by these companies, and to facilitate the
extension of the markets for American coal
along the Atlantic and Pacific coast and in
foreign countries.
The S. S. “Virginia” will be ready to. go into
commission by the first of December, 1915, and is
319 feet in length, forty feet beam, twenty-seven
feet six inches depth, twenty-two feet eight inches
draft, with a deadweight carrying capacity of
5.450 tons. Her speed is ten and one-half knots.
She has a deckhouse on the bridge deck, with a
captain’s room and spare room with pilot house
over the salon. The propelling machinery is
placed aft and consists of a triple expansion in¬
verted reciprocating engine of about 1.800 horse
power, with two single ended Scotch boilers,
having a working pressure of 200 pounds. The
S. S. “Tonaney” and S. S. “Bylayl” are sister
shins of the same capacity and dimensions. The
hailing port of these vessels is Boston, Mass.
The Pocahontas Navigation Company, Incorpo¬
rated. will work in coniunction with the Pocahon¬
tas Fuel Companv, which has recently acquired
by purchase the Garfield & Proctor coal wharf,
at the foot of Hillman street. New Bedford.
Mass., the capacity of which is being increased
by the addition of modern machinery for the
ouiek discharge of cargoes of coal from steam¬
ships such as the S. S. “Virginia,” and for the
Quick handling and increased storage of coal on
this wharf. The Pocahontas Fuel Company is
akso erecting a modern coal handling and storage
plant on Long Wharf at the foot of Moulton
street, Portland, Me., which property the com¬
pany has purchased. These wharves, with the
distributing wharf of the Bowenville Coal Com¬
pany at Fall River, Mass., and the distributing
wharf at Everett of the New England Coal &
Coke Company, which handle “Original Pocahon¬
tas” coal for the Pocahontas Fuel Company in
these districts, it is contemplated will, with the
other individual business of the Pocahontas Fuel
Company in New England, keep this fleet of ves¬
sels fully occupied after April 1, 1910, until which
time the company has other arrangements for the
ocean transportation of its coal.
The S. ,S._ “Virginia” and her sister ships have
all been equipped with discharging ma.sts, winches
and tackle and proper hospital facilities to per¬
mit of their being placed in the export business
and it is possible that until the spring of 191G
they will be engaged by the Pocahontas Navigation
Company, Incorporated, under the American flag
in the transportation of “Original Pocahonta.s”
coal to the Mediterranean and South American
ports where the Pocahontas Euel Companv has
many contracts and is shipping large quantities of
"Original Pocahonta.s” coal, or for such other
export business as may be acceptable, the vessels
being adapted for the shipment of grain or gen¬
eral cargo, and will be available to .apply on this
class of export business for which there is now
such an urgent demand until the spring of 1910,
when the vessels will be required in the transpor¬
tation of the company’s coal to New England.
In referring to the reasons for the construction
of a fleet of vessels in connection with the coal
business of these companies, Mr. Thorne sub-
for Coastwise and Export Trade.
Charles S. Thome Explains the Situation
Which Led the Pocahontas Navigation
Company to Build Three New Steamers
— Eastern and Foreign Markets Analyzed.
*
mitted some interesting figures in regard* to the
increased shipments of American coal to the
foreign trade and to the growth of American
owned and operated vessels, stating that the
over-sea exports of American coal in which the
Pocahontas Fuel Company was taking an active
part had aggregated 5,200,000 tons during the
nine months ended September 30, 1915, as com¬
pared with the total of 2,991,000 tons for the
twelve months of 1914.
As illustrating the growth of the American
merchant marine, Mr. Thorne called attention to
the fact that the United States is now the second
largest merchant marine nation of the world,
owning and operating about 0,400 vessels, aggre¬
gating 6,700,000 tonnage, as compared with Great
Britain’s ownership of 11,350 vessels aggregating
about 21,300,000 tonnage, and stated that of the
total of 8,700,000 tonnage of vessels owned and
operated in the United States, about 2,500,000
tonnage is operated on the Great Lakes. This
leaves about 6,200,000 tonnage owned and oper¬
ated by the United States shippers, independent
of the Great Lakes’ tonnage. This is greater
than the vessel tonnage owned by any other
maritime nation except Great Britain, making
the United States the second largest owner and
operator of vessel tonnage, regardless of its lake
tonnage.
The following table will give the vessel ton¬
nage of the principal maritime nations of the
world, in comparison with Great Britain and the
United States, mentioned in the order of the size
of the tonnage:
VESSEL TONNAGE OF PRINCIPAL MARITIME
NATIONS OF THE WORLD.
As of June 30, 1915.
No.
Nations — Vessels.
Great Britain . 11,353
United States . 6,410
Germany . 2,166
Norw.-iy . 2,174
France . 1,539
Japan . 1,155
Italy . 1,177
Holianfl . 800
•Sweden . 1.462
Russia . 1,256
Austria . 433
Greece . 510
.Spain . 642
Denmark . 835
Tonnage.
21,274,068
8,710,648
4,706,027
2,529,188
2,285,728
1,826,068
1,736,545
1,522,.547
1,122,883
1,054,762
1,018,210
908,725
899,204
854,996
These figures include only vessels of 100 gross
tons and upwards and do not include barges.
Mr. Thorne also called attention to the fact
that most of the shipyards in the United States
are now running full, there being under construc¬
tion in these yards about thirty-six general cargo
steamers, aggregating about 175,000 tonnage and
about twenty-two bulk oil steamers, aggregating
about 223,000 tonnage, making a total of approxi¬
mately 400,000 additional tonnage for the Amer¬
ican merchant marine, now under construction,
these figures being exclusive of government ves¬
sels, barges, scows, tugs, etc.
The S. S. “Jonancy,” which was launched on
November 9th, was named after the infant
daughter of James Ellwood Jones, general
manager of Pocahontas Consolidated Collieries
Company, Incorporated, and the sponsor for this
vessel was Miss Elizabeth Bowen Jones, who is
nine years old. Both of these young ladies are
granddaughters of Jenkin Jones, a vice-pres¬
ident of the Pocahontas Consolidated Collieries
Company, Incorporated, who was one of the first
men to engage in the mining of smokeless coal
in West Virginia, and who is now probably the
oldest living representative of that group of men
who first developed the coal mining industry on
the Norfolk & Western Railway and Chesapeake
& Ohio Railway in West Virginia, and it seems
peculiarly fitting that one of these first vessels to
be constructed for the ocean transportation of
Pocahontas coal should be named after and
christened by the granddaughters of this pioneer
coal operator, who is still in the enjoyment of
good health and active in the counsels of the
Pocahontas, .Consolidated Collieries Company,
Incorporated, and its associated interests.
The sponsor for the S. S. “Virginia” was Mrs.
Ethel Witherspoon Alexander, wife of Mr. O. L.
Alexander, Boston manager of the Pocahontas
Fuel Company.
The sponsor selected for the S. S. “Bylayl,”
which will be launched about December 1st, is
Miss Alice Wright Mann, the thirteen-year-old
daughter of Isaac T. Mann, who is president
of the Pocahonta.s Consolidated Collieries Com¬
pany, Incorporated.
Want Rates Changed.
A Washington dispatch on Tuesday of this
week stated that : “Application has been made by
G. B. Markle Company and other independent
shippers for a reopening of the anthracite coal
case, so far as it affects the smaller sizes, buck¬
wheat, rice and barley coal.
“The present rates on these sizes from the
Lehigh region to tidewater are declared to be
unreasonable as compared with prepared sizes
and particular objection is made to the fact that
carriers charge a higher rate on buckwheat from
the Lehigh region than from the more distant
Wyoming region.
“The Interstate Commerce Commission, in the
anthracite rate case, presumably as an offset to
the reductions which were made in the rates on
the prepared sizes of anthracite coal. Suggested
that an increase be made in the rates on the
smaller sizes, this averaging about fifteen cents a
ton.
“The application by independent shippers for a
rehearing of the anthracite rate case is in con¬
nection with this part of the decision. The
smaller sizes of anthracite compete- with bitu¬
minous coal, and it is claimed that it will be im¬
possible to sell any of the steam sizes in com¬
petition with the soft coal, if the rates are ad¬
vanced as suggested.
“Incidentally, this protest by the independent
coal men against the increased rates in steam
sizes is likely to work out to the benefit of the
anthracite carriers. The commission, undoubt¬
edly, considered the reduction in the rates on pre¬
pared sizes in connection with the suggested in¬
creases in the rates on the smaller sizes. If, now,
it is proven that the smaller sizes will not move
at all if the rates are advanced as suggested, it is
likely that the commission of its own volition will
revise the reductions which it ordered in its deci¬
sion on the prepared sizes of coal.”
Trial was started Tuesday in the United States
District court in the suit of James H. Minds and
Julia A. Matz to recover from, the Pennsylvania
Railroad, $65,000, which was awarded by the In¬
terstate Commerce Commission in March, 1912',
for the alleged discrimination in the distribution
of cars to the plaintiffs. Minds with Jacob II.
Matz onerated bituminous mines in Clearfield
county. Pa., until the death of the latter. Mrs. Matz
took over her husband’s interest.s at the time of
his death. The allegation is made that between
1902 and 1904 the Berwind White Coal Company
received 105.521 more cars than did their prop¬
erties, the Buhlah Coal Company, and in the
second complaint that the Berwind White Com¬
pany received 143,088 more cars than did they.
396
THE BLACK DIAMOND
[November 13
News Local to Chicago.
Among the Chicago visitors on Thursday of
this week were: H. A. Hillnier of Freeport,
R. O. Sharon of Peoria, and R. E. Gannon of
Cairo, 111.
F. J. Kopecky, for the past five years with the
RIack Gem Coal & Coke Company, joined the
sales force of Richards, Evans & Co., Chicago,
on the first of the month.
George R. Harrington, president of the Chi¬
cago, \\'ilmington & Franklin Coal Company,
states the Orient mine hoisted over 84,()()() tons
during October, breaking all monthly hoist rec¬
ords for that operation.
The S. & S. F'uel & Supply Compan\- was or¬
ganized this week by Louis Scbubert, formerly
with Wilcox & Co., a building supply firm, and
h'rank Filha. A retail yard at Sunnyside and
Cicero avenues has been acquired. The capital
stock of the new company is $10,000, which it is
understood wilt be increased shortly to $25,000.
D. V\ . Buchanan says the war supply busi¬
ness has forced the price of mine supplies and
equipment over fifty per cent in many instances.
\\ ire rope, electrical goods, steel rails, powder
and numerous other articles are advancing in
price almost daily, but no increase in the price
of coal has yet been mentioned to cover this
increase in the cost of production. Every in¬
dustry seems to be getting a share of the dis¬
tribution of war funds except the coal mine
operator. “’Twas ever thus.”
Colonel \V . P. Rend, while in a reminiscent
mood a few days ago, remarked, “1 have oper¬
ated mines in Ohio, West Virginia and Illinois
for nearly fifty years, during which time I have
had first hand opportunity to judge of the service
offered by many railroads. In all my experi¬
ence no coal carrier has ever equalled the service
we are getting every day, year in and year out,
from the Burlington Railroad.” This was rather
an unique testimonial, as generally the coal
operator spends a certain portion of his time
cussing the transportation companies. Joseph
Rend remarked incidentally that in commenting
on the service given by the Burlington that
considerable credit should be given to W. A.
Holley the coal traffic manager.
The Buchanan Coal Company has opened up
an exhibition room in connection with its spa¬
cious offices in the McCormick building. Coal
dealers are invited to make this room their
headquarters while in Chicago and a visit there
will repay any retailer for his trouble. A cabinet
containing all the various sizes of coal mined by
this company, a model of the famous spiralizer,
a table full of various kinds of advertising
literature and a wall covered with interesting
mine and coal photographs are part of the equip¬
ment to be found in this unique exhibit. The
publicity department of this company is doing
a wonderful work popularizing Franklin county
coal with the consumer, going a step further
than Joseph Leiter, who directed all his efforts
to educating the dealer as to the many meritori¬
ous qualities of Franklin county coal. This
policy may not show immediate results of an
astonishing nature, hut it is bound to yield hand¬
some results in the long run.
Chan. F. Lemmon retired from the sales man¬
agership of the Chicago, Wilmington & Franklin
Coal Company on November 8th. His successor
is .'\ndrew Maloney, who has had charge of the
Thayer and Virden coals since the amalgamation
of the Royal Colliery interests with the Chicago,
Wilmington and Franklin Coal Company sev¬
eral months ago. Mr. Maloney is well
fitted to take the added responsibilities of
a position calling for the disposal of
over a million tons of coal annually, and his
many friends in the trade have no fear of his
success in this new undertaking, working under
the guiding hand of George B. Harrington, presi¬
dent of the company. Chan. Lemmon intends
to realize a lifetime ambition of getting into
business for himself by joining hands with Bob
Gruschow in a jobbing enterprise in the Old
Colony building. A new corporation will be
formed immediately under the name of the Grus¬
chow & Lemmon Coal Company. This com¬
pany will take over the jobbing business con¬
ducted in the past by Robert E. Gruschow. Air.
Gruschow’s north side retail yard is not included
in this transaction.
.American railroads are confronted with one
of the worst car-shortage situations of recent
years, according to A. G. Brown of the Central
and \^'estern Association of Car Service Officers,
which held its annual meeting at the Hotel La
Salle, November 11. The carriers, in their
efforts to keep down expenses during the lean
fiscal year 1915, put off ordering new cars and
now they have been caught by a combination of
three elements, which is bringing them a sudden
rush of business they cannot meet. These three
elements, according to Mr. Brown, are the huge
grain crop, the unexpected industrial tonnage
from war business and the runaway steel market,
which makes it impossible for the roads to get
cars turned out now that they want them. "The
car problem on a large part of American rail¬
road mileage,” said Air. Brown, “is getting very
serious. The St. Paul road, for instance, is
having the heaviest loadings of its history. This
is due principally to the phenomenal spring wheat
yield. Aline tonnage is growing heavier every
day, with the exceptional copper situation and
the demand from the steel mills. As soon as
the northwestern lumber trade picks up — the
southern lumber business has already begun to
move — the northwestern roads will be absolutely
unable to get cars enough. In the east the roads
serving the industrial states have a huge tonnage
of steel and other war products. The coal roads,
now that the British and German export has been
stopped or hindered and non-coal producing
countries are forced to turn to us, are hauling
a tidewater tonnage that is unprecedented. Even
the southern roads are doing better and the
whole prospect points to a car famine, espe¬
cially if sudden cold weather following upon the
present unseasonable warmth precipitates a glut
of ccral orders from small dealers who keep no
reserve on hand. The surplus of idle cars that
have been on the reports does not represent any
real surplus, for they are nearly all bad-order
cars or antiquated equipment from which little
practical service may be expected.”
Alembers of the coal and coke subdivision of
The Chicago Association of Commerce were ten¬
dered a luncheon by the president of that or¬
ganization, Charles L. Dering, at Luiion League
Clul), Thursday noon. It was decided to make
a determined campaign in the coal trade for
new members as that industry has an insigni¬
ficant representation in the association at pres¬
ent. In speaking of the work of The Chicago
-Association of Commerce, President Dering said,
e generally appeal for membership in the
association on the liroad grounds of civic loyalty
and patriotism. W'e hold that the work of the
association is a ^most worthy one and entitled
to the support of every public spirited citizen
and particularly of every company or corpora¬
tion doing business within our limits. We hold
that our work has made Chicago a better, cleaner,
safer place in which to live and do business.
"If 1 were to pass over all that has been done
by the association to make Chicago a better,
cleaner, safer place in which to live and do busi¬
ness, and solicit new members solely upon the
ground of the magnificent work that has been
done by the association in the matter of the
anti-trust legislation, I should surely feel that I
could urge it upon you in that respect alone,
that the association is deserving of your support
for years to come. I make the assertion that
it was the most magnificent piece of progressive
business effort that has ever been put forth by
the business world and that we finally escaped
trust legislation that would have been terribly
harmful in the remotest corners of our country,
was largely through the efforts of The Chicago
Association of Commerce. I make this state¬
ment without fear of contradiction. The fact is
even recognized in the financial circles of New
A’ork. A’ou may argue that you do not have
time to devote personally to association work,
but in an organization of this sort there must
be two types of support — the one who pays and
works and the one who simply pays. The work
of one could not go forward without the sup¬
port of the other. So if you haven’t the time
or the inclination to get actively into the harness
and do your share of the work, surely you want
to help pay for the ‘machinery’ with which the
'other fellow’ does it.” At the conclusion of
Air. Dering’s remarks a committee was appointed
to assist Chairman Dennis Gibson in making a
thorough canvass in the coal trade for new mem¬
bers.
The physicians attending D. A. Thomas, the
well known Welsh coal magnate, who was oper¬
ated on in this city last Wednesday, undergoing
a double operation for a nose and foot trouble,
states that his improvement following the opera¬
tion has been most remarkable, due to his very
strong vitality. It is understood that Mr. Thomas
will return to England early in December.
Association Ne’ws.
I. L. Runyan, secretary of the Illinois and
W'isconsin Retail Coal Dealers’ Association, re¬
ports that:
“Business with the retailer is moving along in
a fairly satisfactory manner. The variable
weather, of course, has its effect, and steady
calls from the consumer can hardly be hoped
for so long as these conditions continue. Many
of the retailers complain of slow collections.
In fact, there appears to have been little im¬
provement in this respect.”
Some time ago it was reported the employees
of the Kankakee & Urbana Traction Com¬
pany were soliciting orders from consumers in
the vicinity in which they were located, and
when sufficient orders had been accumulated to
justify, a car of coal was ordered for distribu¬
tion. We took this question up with the man¬
agement along the lines that community devel¬
opment could hardly be expected if those hav¬
ing investments in facilities for serving the
trade were expected to meet competition which
does not represent any investment other than
the purchase price of the commodities sold
and that as a public utility and dependent for
its success upon the patronage of the public,
its agents and other representatives should con¬
fine their activities in behalf of the interests
of their employer. We are pleased to say
the management readily acknowledged the
justness of our contention and a circular has
been issued forbidding their agents or repre¬
sentatives to engage in the sale of coal or
other merchandise while in the employ of the
traction company. This is simply another il¬
lustration of the results which can be accom¬
plished in behalf of trade betterments, and is
one of the many reasons why the association
should have the support of those engaged in
the retail coal business.
We are pleased to say progress is being
made in increasing the association’s numerical
strength, as evidenced by the following firms
and individuals who have become members
since October 1st:
Heddles Lumber Company, Aluscoda, Wis. ;
Crumb-Colton Company, Rockford, Ill.; David
Marliere, De Pue, Ill.; J. W. Backman & Son,
Villa Park, HI.; Alexander Lumber Company,
Rantoul, III.; McCullough & Son, Rantoul, Ill.;
Oscar A. Anderson Lumber Company, Brook¬
field, Wis.; N. W. Ellis, Sparta, Wis.; Frank
Dry, Portage, Wis.; C. F. Mohr, Portage,
Wis.; A. J. Weir, Portage, Wis.; Horner Ele¬
vator & Alill Company, Lawrenceville, Ill.;
William McClure, Prairie Du Chien, Wis.; P.
A. Richards, Durand, Wis.
.About a year ago most of the city depart¬
ments of greater New A'ork City began purchas¬
ing their coal through a central purchasing com¬
mittee. To test the efficiency of the new sys¬
tem, purchasers were confined to twenty-eight de-
jiartments under the jurisdiction of Ma3'or
Alitchell. The committee having in charge the
central purchasers have recently made a report,
covering the year’s work, and they state that the
city has benefited in lower prices and wider com¬
petition under coal-operating purchasing. Over
$:i, .)()(), 000 in supplies have been bought by the
city as a single institution, instead of by twenty-
eight independent units as heretofore. Concern¬
ing coal purchases, this report says : “The av¬
erage cost of anthracite, buckwheat No. 3, W'as
reduced from $'2,667 per gross ton, to $2.. 351 ;
bituminous from $:i.56.'5 to $:f.i:t6.” They state
that the average price secured Iw the depart¬
ment in 1914 for anthracite nut coal per ton
was $6.57], whereas the average in 1915, through
the Central Purchasing Committee, was $6.544 :
anthracite buckwheat No. 3 in 1914, $2,607, and
in 1915, through the Central Purchasing Com¬
mittee, $2,351. The cost of bituminous run-of-
mine in 1914 was $3,536, and in 1915, $3,136.
The report says that the work of the Central
Purchasing Committee in the future is to be put
under a board of city purchase, consisting of
the mayor, comptroller, a representative of the
board of estimate, and two members to be ap¬
pointed by the mayor. It is expected that the
hoard will be established by an act of the legis¬
lature, and that it will have committed to it the
purchasing for the entire cit\’ government.
Charles B. Holcomb, the well known retail coal
dealer of Tariffville, Conn., writes The Black
Di.xmond that he has closed out his retail coal
business, after forty-six years of continuous
service. Air. Holcomb states that he is nearly
seventy-three years old, and must go more easily
during his remaining years.
No. 20]
THE BLACK DIAMOND
397
Facts Which Determine Our Export Prospects.
The Export Situation.
The shortage of vessels for taking export
cargoes is more’ acute this week than at any
time previous. Last week exports from Hamp¬
ton Roads ports were only 94,477 tons and
from Baltimore 16,901 tons. This shows a fall¬
ing off as compared with records that these
ports have maintained for some time past.
However, exports are going along in much
greater volume than at this time last year,
when, it will be recalled, that there was also a
very serious shortage of ships.
It should be borne in mind that our Octo¬
ber exports were approximately 650,000 tons,
as compared with exports of 338,617 tons in
October, 1914. Due to the lack of ships last
fall, November exports were only 297,674 tons,
and in December 234,695 tons.
Tidewater prices on standard coals that go
into export are well maintained. In fact, at
Baltimore and Philadelphia, prices are much
firmer, good Pennsylvania coals selling at $1.40
and $1.50 at the mines, taking a rate of $1.18
to Baltimore and $1.25 to Philadelphia, when
intended for export. At' Hampton Roads, $2.85
maintains on New River and Pocahontas. Bun¬
ker requirements are heavy.
Schooners for Export Trade.
Announcement was made in Washington
last week that four steel auxiliary freight
schooners for trans-Atlantic service are being
constructed by the Toledo Shipbuilding Com¬
pany at Toledo, Ohio, for a New York ship¬
ping concern. Secretary of Commerce Red-
field said that this type of vessel could operate
most profitably under present conditions, and
could more than hold its own even in normal
times against foreign competition.
Mr. Redfield pointed to the clearance re¬
cently of two wooden steamers of the old
American coastwise type from Norfolk and
Newport News, with cargoes of coal for Spain
and Italy. This, he said, was the first time
in the history of American commerce that this
country had shipped coal to these countries
in American vessels. He said there is no rea¬
son why .America should not continue to com¬
pete in these markets after the close of the
war. The vessels now being constructed for
the New York company can be operated un¬
der the American registry cheaper than the
Norwegian tramp steamer, according to the
secretary.
The construction of these vessels is the re¬
sult of correspondence between the Secretary
of Commerce and the New York firm. Mr.
Redfield, it is stated, learned that insurance
could not be obtained on the wooden coastwise
vessel for ocean voyages, except at very high
rates. Why not construct them of steel, and
provide them with auxiliary engines to avoid
the delay of a calm? inquired the secretary.
This suggestion was promptly acted upon,
plans were drawn for the vessels and con¬
tracts awarded to the Toledo Shipbuilding
Company. These vessels will be 261 feet long,
forty-three feet wide, and will draw ten feet
of water light, or about eighteen when loaded.
Coal Trade in Norway.
Consul Maurice P. Dunlap, at Stavanger,
Norway, under date of October 13, 1915, writes
The Black Diamond as follows:
“Although the coal consumption of this dis¬
trict has not changed materially since the war
began, general business has never been so big
before, and the price of coal has advanced
along with the prices of other commodities.
The bulk of the coal used here is English
steamer coal, and the price of the best New¬
castle steamer coal is now forty-two crowns
($11.26) per ton. Before the war the con¬
sumer paid only twenty crowns ($5.36) per
ton. House coal, which comes generally from
the Firth of Forth, Scotland, costs about one-
quarter less than steamer and has advanced
in about the same proportion. The rise is due
mainly to the freight, which has advanced since
July, 1914, from four .shillings six pence ($1.10)
per ton to fifteen shillings (.$3.65).
“Coal delivered f. o. b. in England has,
however, also advanced in cost. Before the
war, the best Newcastle ranged from about
twelve shillings six pence (about $3) to fourteen
shillings ($3.41). Now it is quoted f. o. b.
Blyth at nineteen shillings six pence ($4.75).
Nearly all the coal used here is ‘D. C. B.’
coal (Davison, Compen & Bothal) — the stand¬
ard kinds from Newcastle and Blyth. Best
Newcastle smalls, f. o. b. Blyth, is now quoted
at twelve shillings $(2.92).
“There is some uncertainty felt here in cer¬
tain quarters regarding the coal situation.
Great Britain now requires a special license
for every cargo of coal shipped to Stavanger,
and firms suspected of making shipments of
their products to Germany can get no license.
It may be said that larger stocks of coal have
been laid in this year than usual because of
unsettled conditions. A depot for German coal
has been started recently in this district.
“Inquiries have been made at the consulate
regarding the possibilities of getting Ameri¬
can coal and considerable interest was shown
at first. However, the interest subsided when
prices from America were received which
ranged about twenty shillings (about ($4.80)
higher than English prices, c. i. f. No coal
has been ordered from America.
“There are no electric cranes here to aid
in unloading coal to the private docks, al¬
though the local government has recently or¬
dered one from Christiania for the public
quay. Perhaps 200 tons per day can be un¬
loaded with the present facilities.
“Coal and coke were imported to Stavan¬
ger during 1914 as follows”:
tons (metric) from England.
5 tons (metric) from Germany.
Total S9,f;iS
Egyptian Coal Trade.
R. J. Moss & Co., of Alexandria, Egypt, un¬
der date of October 8th, write of the coal
trade there as follows:
“The stocks ashore and on board steamers
discharging amount to 31,000 tons.
“The importation of coal from January 1st
to October 7, 1915, is as follows:
Tons.
Welsh . 280,742
Newcastle . .56,176
■Scotch . 54,77.)
Yorkshires . 64,083
Other qualities . 122,848
578,624
Same period last year . 1,043,225
Totals for previous years:
Tons.
1900 . 1,264,601
1907 . 1,376,082
1908 . 1,307,683
1909 . 1,202,085
1910 . .' . 1,150,484
1911 . 1,325,916
1912 . 1,304,285
1913 . 1,447,680
1914 . 1,184,843
Recent Coal Freight Charters.
Steamer Mimer (Br.), Baltimore to Mexico, coal, p. t.
Schooner William D. Marvel, Philadelphia to Calais,
650 tons, coal, $1.25.
Schooner P'. A. Allen, Philadelphia to Calais, 775 tons
coal, $1 25.
Steamer Falk (Nor.), Baltimore to Sweden, coal, p. t.,
November.
Steamer Thelma (Nor.), Philadelphia to Sagua, coal, $3.
Steamer Orkild (Dan.), Norfolk to Cienfuegos, coal,
p. t.
Schooners Malco.m Baxter, Jr., and Brina Pendltton,
Norfolk to Para, coal, $6.
Schooner Calumet, Norfolk to Pernambuco, coal. $9.
Schooner Jacksonville, Norfolk to Bermuda, 1,000 tons
coal, p. t.
Ship Rhine, Newport News to Buenos Aires, coal, $S,
prompt.
Portuguese Coal Trade.
W. L. Lowrie, American consul general at
Lisbon, Portugal, under date of October 7,
writes The Black Diamond as follows:
“The consumption of coal has been consid¬
erably curtailed, as several of the fast trains
have been taken off the railroads and many
of the factories of the country are working
reduced hours or only three days a week.
Importers, however, state that they have been
making every effort to keep up with the de¬
mand by placing larger orders, but stocks on
hand are below normal. One agent informs
me that he is several thousand tons behind
his orders.
“Importations for the first eight months of
1914, the latest statistics, as compared with
the corresponding period in 1913, were as fol¬
lows:
Amount— Value.
1914, 824,936 metric tons . $3,351,954
1913, 925,575 metric tons . 3,816,868
“Portugal uses Welsh (Cardiff) coals al¬
most entirely.
“Prices of Welsh coal on August 1, 1914,
averaged twenty-four shillings, while present
quotations are from forty-nine shillings to
fifty-one shillings, c. i. f. Lisbon. Freight
rates from England are gradually increasing.
The rate per ton on September 14 was eight¬
een shillings, and on September 29 it was
twenty-two shillings six pence. There was no
American coal in the market on August 1,
1914. Lately some cargoes of Pocahontas have
been received, but on account of the high
freight it is difficult to compete in price with
the Cardiff coal.
“No special improvements have been made
to the docks and discharging equipment in
Lisbon. Four hundred tons of coal is the
average quantity discharged in a day.
“The importation of coal in 1913 (latest
available statistics as to source of origin) were
as follows:
.\niount. Value.
England . 1,340.549 metric tons $5,548,31 1
Germany ■ • • •_ . 8,957 metric tons 42,111
Other countries . 2,3l4 metric tons 11,225
Total . 1,351,820 metric tons $5,601,447
“The problem of selling American coal here
is based on freight and transportation — a diffi¬
cult proposition at present.”
Foreign Freight Rates.
W. W. Baltic & Co.’s Produce Exchange, New
York, reports as follows :
The freight market is today at the highest
level it has ever touched, and is still advanc¬
ing. Over seventy-five shillings per ton has
been paid on grain to the West Coast of Italy,
and time charter rates advance daily.
Tonnage is more than scarce and the few
available boats are all asking for grain, making
is very difficult to operate in coal.
If you have any export coal orders or in¬
quiries, kindly communicate with us, so that
we can give you latest freight quotations, the
market changing daily.
We would quote freight rates on coal by
steamer as follows:
West coast of Italy, 70s to 75s; Marseilles, 65s to 70s;
liarcelona or other good Spanish port, 60s to 70s (Spanish
dues for account of cargo).
Note. — Charters for Italy, France and Spain read:
“Lay days to commence on steamer's arrival at or off
port of discharge, Is per net register ton per day de¬
murrage.”
Mo.itevideo, about 45s; Buenos Aires or La Plata, about
415; Rosario, about 50s; Rio de .Taneiro, about 45s;
.S.i.itos, about 45s (consignees paying docas dues).
Valparaiso or Callao, about $7.50; Havana, $2.75 to
$3; Cardenas or Sagua, $3 to $3.25; Cienfuegos, $3 to
.$3.50; Pert of Spain, Trinidad, $4.00 to $4.25; St.
Lucia, $3.75 to $4.25; St. Thomas, $3.50 to $3.76; Bar¬
bados, $l to $4.25; Kingston, $3 to .$3.25; Curacao,
about $3.75 and p. c.; Santiago, $3.25 to $3.50; Guan¬
tanamo, $3.25 to $3.50; Dem erar, $6 to $6.50; Bermuda,
about $3.50; t'era Cruz, $5 to $5.50; Tampico, $5 to $5.50.
Coke to Europe.
For the first time in many years a shipload
of coke will be sent from the port of Phila¬
delphia to Europe this vreek. This is one of
the effects of the European war, because under
normal conditions German coke producers have
been monopolizing the foreign trade in coke on
account of the large production of by-product
coke and the excellent facilities that have been
provided for transshipping it to steamers.
In the past there have been shipments of coke
from this country to Mexico, Central America
and South America-, but the cargoes sent to
Europe have been very few and far between.
Since the blockading of German ports some of
the European coke consumers have been nego¬
tiating with producers in the L^nited States, as
the English producers are using all of their
output in their home market.
The cargo to be shipped from Philadelphia
will consist of 4,000 tons of by-product coke
(Otto Coke) from the works of the Camden
Coke Company, Camden.
It will be loaded 'on the steamship Washing¬
ton at the Port Richmond pier of the Phila¬
delphia & Reading Railway. It has been sold
to the Italian Government. — Camden Courier.
A cable from Panama on Monday of this week
stated that the progress made in dredging the
Panama Canal at the Culehra Cut indicates that
there will he a channel too feet wide by thirty
feet deep through the slide area by the middle
of December. But the canal will not he in
position for use much before January 1st. The
obstruction is being removed at the rate of
1,000,000 cubic yards a month, an average of
35,000 cubic yards daily.
398
THE BLACK DIAMOND
[November 13
General Review.
Eastern Markets Fairly Active — In the
West the Weather Retards
Progress
New England reports that in spite of the
warring atmosphere in the bituminous trade,
there is a better feeling, which is due more
to a revival of business than to any prospect of
a peaceful settlement of 1916-17 prices.
In New York the anthracite market is in a
very healthy condition, with the market able
to take care of the full output of the mines,
which are running as near to capacity as the
state of the car supply and labor will permit.
The car shortage in the anthracite regions has
not arrived at an acute stage. The bituminous
situation continues strong with a tendency on
the part of the large consumers to increase
their contract shipments. Reports from Phil¬
adelphia show that feeling in the anthracite
trade has remained good with the demand
firm. The mines are reported as running on
full time, and there have been no untoward
conditions at the mining regions so far. There
has been little change in the bituminous mar¬
ket at this point.
.'\t Baltimore the export coal business has
been greatly upset by the high freight rates
demanded by ships not under time charter.
Most of the boats have been captured by the
grain and ore men with offers of freight rates
that are out of reach for most of the coal
exporters. There has been a falling off in the
export movement from fifty to eighty thou¬
sand tons.
From Buffalo it is reported that there is a
difficulty in securing bottoms for the move¬
ment of coal towards the northwest. Locally
there is a fairly good demand for anthracite,
which was induced by some seasonable chilly
weather. Coal is not coming forward as fast
as desired, owing to a lack of cars.
In Pittsburgh the weather continues warm
and soft, thereby considerably delaying the
purchases for the domestic account. How¬
ever, the steam coal demand continues strong,
especially on contract. This demand at pres¬
ent about equals the output. The car short¬
age is an important factor in this market.
Detroit reports a sluggish condition in the
steam coal trade, although the strike of the
Michigan Central Railroad clerks in some
measure affected the supply. It is stated from
Cleveland that slack is continuing to show
considerable strength, but other sizes of steam
coal have been rather inactive. The scarcity
of cars has resulted in ridding the market of
surplus supplies of slack. Cleveland also re¬
ports the scarity of coal carriers for the lake
trade.
In the Cincinnati market there has been a
lessening in the demand of domestic sizes of
coal of all kinds. This has,, in a measure,
acted as a relief for the scarcity of cars which
is becoming more and more apparent. West
Virginia coals are reported as being in good
demand.
At Louisville the market is again threatened
by the long continued warm weather, and it
is said that the operators are having some
difficulty in keeping the mines going.
Indianapolis advices show the demand for
steam coal is slowly improving and shows
a steady growth. The prices, however, have
not improved, although they are holding up
fairly well.
Duluth reports an increase in anthracite re¬
ceipts and a decrease in bituminous receipts
for the period ending November 1st of this
year. This decrease in the bituminous is ac¬
counted for, mostly, by the fact that there
was a great deal of soft coal left on the docks
at the end of last season. A fair movement
is reported from that city.
In the Twin Cities all grades of coal are
in fair demand, although there is not the
snap to the trade which would be visible un¬
der more favorable weather conditions. The
warm weather has affected the St. Louis mar¬
ket so that there are no changes reported.
On the other hand the operators centering at
that point have shown a very decided inten¬
tion to maintain the prices in all districts.
In Omaha and further west, the market re¬
ports indicate that the continued warm weather
has caused a lull in the activity noted a few
weeks ago. Until the weather becomes sea¬
sonable it does not appear as if the market
will revive to any extent.
Chicago Market.
Conservative Production Aids Market
Weakened by Warm
Weather
Office of The Black Diamond,
Chicago, November 11.
Mild Indian Summer or rather mid-sum¬
mer weather throughout the northwest is
acting temporarily as a damper on the demand
for both anthracite and bituminous coal. With
the thermomenter in the seventies for the
past week, coal buying has been the last
thing in the mind of the ordinary householder.
Usually the territory contiguous to the Chi¬
cago market is visited by severe frosts each
year before this time, but thus far there was
only one short cool spell and that was over
a month ago. The rest of the time house
fires were not a necessity, consequently the
coal market is in a waiting condition.
The anthracite market has fared worse than
bituminous coal, concessions in price being
made on practically all sizes averaging around
fifteen cents below circular. This weakening
of quotations has spread to companies not
heretofore listed in this class with the urgency
to avoid payment of demurrage.
All retail yards are heavily stocked with
both hard and soft coal, and it will require
several days of chilling weather to create any
perceptible demand from that quarter.
The demand for steam coals is better this
week with prices considerably firmer, due
doubtless to a curtailment of production, ow¬
ing to the lack of orders for the domestic
sizes. Some of the railroads are taking stor¬
age which has helped to stiffen this market.
Franklin county operators recognizing the
futility of tryihg to force a market already
plentifully Supplied with coal are restricting
production. Operating companies with two
mines are leaving one of them idle until the
demand catches up with the supply. The
other operators are skipping a day now and
then, which gives them a chance to reduce
their supply of unbilled coal. With the ar¬
rival of active coal consuming weather the
situation is bound to improve rapidly.
There has been slight concessions made I ’
a few of the operators on egg coal with lump
and No. 1 nut bringing full circular. Screen¬
ings are firm at fihy cents for Chicago de¬
livery with country prices ten cents higher.
A number of large users of screenings, who
have been buying on the open market were
beginning to get a trifle nervous, and have
signed up contracts within the week calling
for their requirements to April 1st. Their
decision was probably influenced by the firm¬
ness of the fine coal market around current
quotations and the unprobability of prices de¬
scending to the level reached a year ago.
Prices up to Thursday were;
Franklin County —
Lump . . .
Kgg .
No. 1 nut .
No. 2 nut .
Mint run .
2.inch screenings....
F. O. B.
Chicago.
$2.80
2.55@2.86
2,70@2.S0
2 55
2.15@2'.20
1.55@1.65
F. O. B.
Mines.
$1.75
1.50(®1.75
1.65@1.76
1.50
1.10@1.15
.50® .60
The situation in Williamson county is prac¬
tically identical with Franklin county. Pro¬
ducers of the higher grade coals have decided
that it is best to leave the coal in ground if
it cannot be sold at a profit. A great many
of the mines are shutting down one or two
days a week, and this program will be adhered
to until the weather changes. Some of the
smaller operators with no equipment to pre¬
pare their coals are attempting to run full
time, but the price obtained is not satisfactory.
The prices up to Thursday were:
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
F.gg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county mines are running a little
better than half time, but this program will
be changed immediately with a drop in tem¬
perature as stocks are light. Screenings are
in good demand around fifty and sixty cents.
The prices up to Thursday were:
F. p. B. F. p. B.
Saline County — Chicago. Mines.
r.ump . $2.65@2.80 $1.60@1.75
Mine run . 2.20 1.15
Screenings . 1.55^@1.G5 .50@ .60
I 54 -inch lump . 2.35 1.30
Business is almost at a stand still in the
Central Illinois District. Operators realize
the, folly of flooding the market when there
is no demand, and very few mines are run¬
ning better than half time. Some of the op¬
erators on the outskirts of the field are calling
the circular fifteen to twenty-five cents on
lump coal, but the regular Circular of $1.75
for lump is being maintained by the Sangamon
county operators generally. The prices up to
Thursday were:
F. O. B. F. O. B.
Central Illinois — Chicago. Mines.
Lump . $2.57 $1.75
Egg . 2.32@2.47 1.50@1.65
Nut . 2.47 1.65
Mine run . 1.87 1.05
Screenings . 1.22@1.32 .40@ .50
The Clinton, Indiana district has adopted a
watchful waiting policy with little tonnage
moving. The steam trade is showing some
signs of life, and as soon as seasonable weather
arrives, the mines will be running to capac¬
ity. The prices up to Thursday were:
F. O. B. F. O. B.
Clinton — - Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.35
No. 5 and 6 mine run . 1.87 1.10
No. 5 and 6 screenings . 1.37@1.42 .00@ .65
The Knox count fiejd has been helped this
week by railroad business. Several orders
have been placed by transportation lines, who
decided this would be a good time to place
coal in storage. Two orders of 400 cars
each are reported to indicate the size of this
business. Prices up to Thursday were;
F. O. B. F. O. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . 2.37 1.50
Mine run . 1.87 1.05
Screenings . 1.52 .65
The demand for smokeless for the time
being has vanished. Some shippers are pay¬
ing demurrage, hoping that the thermometer
will come to their rescue. Mine run is held
firm at $1.40. Lump and egg has been moved
at $1.90 and $2.00. This coal was sacrificed
to avoid the payment of additional demurrage.
Verjr little Somerset county coal is being
offered in this market, owing to a short car
supply and a better demand in the east.
While the shippers have a circular of $1.40
for mine run coal has sold at $1.25 this week.
Lump and eg.g are in fairly good demand
around $1.90 and $2.00. Prices up to Thursday
were :
F. p. B. F. p. B.
Somerset County — Chicago. Mines.
Mine run . $3.40 $1.40
Lump and egg . 4.05@3.25 1.25@2.00
Hocking coal has been plentiful this week
with prices showing a weakening tendency.
Prices range around $1.50 and $1.60 with con¬
siderable effort made to move coal regardless
of price. Prices up to Thursday were:
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.15@3.25 $1.50@1.60
No change of any moment noticeable in the
Splint market. The labor and car shortage
fortunately has kept down the supply where
the demand was light. The market up to
Thursday was :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
Itl-inch lump . $3.40@3.50 $1.50@1.60
Eastern Kentucky operators are rapidly
catching with their orders. Prices vary ac¬
cording to the reputation of the product.
Lump is selling around $2.00, while some of
the more popular coal is moving at $2.25.
Prices up to Thursday were:
F. p. B. F. p. B.
Eastern Kentucky — Chicago. Mines.
Domestic lu.mp . $3.80@4.I5 $1.90@2.25
Egg . 3.25@3.75 1.35@1.85
The foundry coke market has steadied this
week, and a no sky rocket tendencies are in
evidence. The domestic product is not mov¬
ing very brisk, due to climatic conditions
which should change shortly. The market up
to Thursday was:
F. O. B.
Coke— Chicago.
Connellsville . $5.50
By-product, foundry . 6.50
By-product, egg and stove . 4.75
By-product, nut . 4-75
Cas house . 4.00
At the last meeting of the Detroit Coal Ex¬
change a committee of two was appointed to ar¬
range for the formation of a bowling league
among the Exchange members, the plan being to
conduct a bowling tournament during the winter
in the effort to make the coal men better ac¬
quainted with each other.
No. 20]
THE BLACK DIAMOND
399
Pittsburgh Trade.
Warm Weather Delays Domestic Pur¬
chases — Strong Demand for
Steam Coal.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., November 11.
Conditions in the Pittsburgh market are prac¬
tically unchanged from what they were a week
ago, even weather conditions, which continue
warm and soft, holding back the increase that
would naturally be expected in domestic buying
at this date. Demand for steam coals continues
strong, though largely on contract, and this with
the rushing of lake coal to the front, just about
equals output at present, though many of the
larger operators claim to be sold up, and booking
no new business. The car shortage is the most
important factor just now in shipping, and while
some stocking is being done, certain interests
claim that with the close of the lake trade, and
the release of large numbers of cars, there will
be a weakening of prices, others think the re¬
verse and say railroads are holding off on stock¬
ing coal to help the operator with cars in other
directions, and that this with the unusual demand
for cars of all kinds, that the extraordinary steel
and iron business is daily calling for, will com¬
mand every available car, and that prices will
still further harden as the turn of the year ap¬
proaches, and prospects of any wage troubles de¬
veloping April 1st come nearer.
No one seems at all anxious to book orders for
forward delivery, and quotations made for im¬
mediate shipment are in many cases made sub¬
ject to prior sale.
The same labor conditions obtain at mines, but
an acute .shortage would be felt if shipping condi¬
tions were not so handicapped.
Prices are at considerable variance among
sellers, some claiming to be getting considerably
in advance of the quotations below, but generally
speaking these figures are as near the market as
can be quoted, f. o. b. mines Pittsburgh :
Steam slack . $0,80@1.00
Run of mine . 1.10@1.25
Three-quarters screened coal . 1.30@1.40
Five-quarters screened coal . 1.40@1.50
As stated, prices seem to be much at variance
among operators, some quoting as high as $1.40
to $1.50 for mine run coal, and other grades on
the same scale, but it looks very much as though
if a man has ten cars of coal for sale he will ask
ten different prices for it, and sell at any one of
them — if he has the coal — the same lack of uni¬
formity in price prevailing today that has ever
been a disturbing element in the trade.
Some slight increase has been noted in mine
activity operations resuming at plants that have
long been idle. The Bertha mines of the Union
Coal & Coke Company, formerly the property of
the Pittsburgh-Buffalo Company at Bruceton,
Pa., are again operating after many months of
idleness. The Marrianna and other mines of this
company are still idle. In reference to rumors
concerning the merging of these properties with
other large Pittsburgh coal interests, we have
from good authority that while negotiations for
the sale of these properties by the Union Trust
Company are pending, the matter is in no wise
connected with any of the rumors that have
gained currency east, and hereabouts, but is en¬
tirely independent of them.
The air is also full of rumors regarding the
J. V. Thompson troubles and all sorts of specu¬
lation is going on regarding the long hoped for
settlement of his affairs. A large number of
suits have been filed in the local courts against
J. V, Thompson by his creditors. Since last
Wednesday about 250 suits have been filed against
the former president of the First National Bank
of Uniontown.
The Thompson creditors in Wa.shington and.
Greene counties have ahso entered a number of
suits in Waynesburg and Washington, Pa. The
statement made by Thompson in New York that
all the depositors of the bank would ultimately
receive their money was cheerfullv received by
those who had balances in the bank.
Receiver John H. Strawn entered suits amount¬
ing to nearly $500,000 against Thompson and his
associates in the United Statgs court in Pitts¬
burgh Saturday last.
The depositors of the bank have absolute con¬
fidence that Receiver Strawn will delay no action
that will bring about an early termination of the
affairs of the bank.
The general opinion seems to be that the pres¬
ent outlook for the future of the coal business
would indicate that the large coal land holdings
of Mr. Thompson are unquestionably worth a
large percentage more today than at the time of
their appraisal by representatives of the cred¬
itors some months ago.
The coke situation is more than holding its
own, not only in price, but in firmness, output
and demand. More ovens would undoubtedly be
fired could more cars and more labor be de¬
pended upon. As it is it is hard to get cars to
handle present production. Some producers are
piling surplus, and expect a higher price for spot
delivery of this in the near future, such demands
assuming larger proportions daily. As near as
quotable the market stands as follows :
Prompt furnace . $2.50@2.7.5
December furnace . 2.40@2.50
1916 furnace . 2.25@2.35
Prompt foundry . 3.00@3.25
First half foundry . 3.00@3.25
Pittsburgh News Items.
L. S. Bovee of the Pittsburgh & Erie Coal
Company of Erie, Pa., spent some days in Pitts¬
burgh the past week.
Wm. Crothers, formerly with B. Nicoll & Co.,
has assumed the selling agency of the Cleveland
& Western Coal Company at Pittsburgh.
William Hammil has been made local sales
manager for the Pittsburgh & Erie Coal Com¬
pany of Erie, Pa., with offices in the House
building, Pittsburgh.
O. Tibbett of Elkins, W. Va., superintendent
of the Davis Coal & Coke Company for many
years, has resigned his position and will retire
from active business.
After thirteen months’ idleness orders have
been received by Superintendent W. C. Fletcher
to get the Sharon works of the American Steel
Foundries Company ready for immediate re¬
sumption at full capacity. The plant employs
about 600 men.
J. H. Powell, head of the large producing cor¬
porations, with mines at Powellton and Eldridge,
W. Va., has just returned from England and an¬
nounced that he had closed contracts in Great
Britain that would require the operation of all
the mines on Armstrong creek, this state for at
least one year. The mines are to be placed in
operation this week, following a shutdown of
almost a year.
Directors of the Littleton Coal & Coke Com-
jiany met and elected T. S. Lackey, president : W.
Cook McKean, vice-president, and A. D. Wil¬
liams, secretary. Other members of the board
are N. H. Jaquette, T, H. Kerr, A. J. Stentz, J.
H. Cunningham, F. P. Rush, and J. L. Borchus.
The company holds 9,000 acres of Pittsburgh
coal in Wetzel county. West Virginia, on the
Baltimore & Ohio Railroad near the Pennsyl¬
vania line.
The first heat from the seventy-five new coke
ovens of the Republic Iron & Steel Company,
Youngstown, O., was secured Sunday, the charge
having been made last Saturday afternoon.
Every one of the new ovens responded in record
time, the arrangement being entirely satisfactory
to the management. The ovens being put in blast
at this time will prove a valuable asset to the
corporation. The supply of benzol so much in
demand at the highest prices, will be increased
about 120 per cent. The Republic Iron & Steel
Company now has 143 by-product ovens in com¬
mission,’ producing 2,000 tons daily. Eventually
other ovens will be added so as to increase the
daily capacity to 3,500 tons.
Cleveland Market.
Cleveland, Ohio, November 11. — (Special
Correspondence.) — Slack has shown continued
strength during the past week, but other sizes in
steam coals have been rather inactive. Scarcity
of cars and the fact that the larger .sizes are not
moving readily have resulted in ridding the mar¬
ket of surplus supplies of slack, which perhaps
accounts for the slightly stiffer prices asked. The
market, however, is not yet in the active condi¬
tion anticipated some time ago.
Coal carriers for the Lake Michigan trade
have been scarce during the past week and it is
said that there was some figuring for tonnage at
an advance rate Tuesday. Although no anxiety
is displayed, there are indications in some
fiuarters that shippers, not already covered for
the tonnage desired, will perhaps be forced to
bid up later on. Receipts of lake coal have been
light, though, for several days. Storms for the
past few days have interfered^ somewhat with
the progress of vessels and this may affect, to
some extent, the tonnage.
Dealers are demanding anthracite deliveries
now. but will in all probability have to be patient
until the producers arc able to comply with their
wishes. The car shortage has interfered ma¬
terially with deliveries within the past few weeks.
It is said that one of the large companies is a
month behind with its orders and others are not
in much better shape. The independent com¬
panies are securing full circular prices on all
orders taken now. Dealers have been slow in
placing orders for their full needs and this has
brought about the present shortage, it is said.
Domestic coals of all kinds are in demand ju,st
now and it seems that the same causes are oper¬
ating to maintain a shortage as are found in the
anthracite situation. The mild weather has aided
producers and jobbers in taking care of the busi¬
ness to a large extent, but should the tempera¬
ture take a big drop, as it is likely to do at any
time, it is possible that deliveries would be more
difficult to make than at the present time.
Some No. 8 lump for domestic purposes is
Iteing handled in this market at the present time,
but the movement in the larger sizes is light.
Slack has been marked up five cents a ton and
there is an increased demand for it. Quotations
on Wednesday are as follows;
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.05@1.10 $1.95@2.00
Run of mine . .9,5 . 1.85
Slack . .85 1.75
All sizes of Coshocton coal have moved fairly
well, but there has been little change in the prices
since last week.
F. O. B. F. O. B.
Coshocton — Mines. Cleveland.
r.ump, 4-inch screened . $1.70@1.75 $2.40@2.45
lt4-inch . I.fi0@1.65 2.80(32.35
Egg and nut . 1.05@1.10 1.75(31.80
Pittsburgh slack shows an advance of about
five cents a ton, although there is still very little
of it in the market, as compared to some other
slacks.
F, O. B. F. O. B.
Pittsburgh — Mines. Cleveland.
Slack . $0.85@ .90 $1.85@1.00
Youghiogheny slack has been very scarce here
the past week and the quotation really gives only
an idea of its selling price, were it moving as
other grades are.
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
Slack . $0.90 $1.90
For some reason Pocahontas coal has been sur¬
prisingly weak for some time. A year ago lump
and egg were strong at $2.25 to $2.50 at the
mines, but at present they are going slowly at
$2.10. At some of the offices here it was said that
an explanation for the situation is difficult to
make.
Smokeless —
T.ump .
Run of mine
F. O. B. F. O. B.
Mines. Cleveland.
$2.10 $3.55
2.10 3.55
1.30 2.75
The demand for Massillon coal for domestic
use is strong, but there has been difficulty in de¬
livering and the producers are again behind in
their orders.
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
I ump . $2.50 $3.20
Knt . 2.50 3.20
Slack . 90 1.60
Th.e Cambridge product is moving along in a
fairly satisfactory way without an advance in
any of the sizes since last week.
Cambridge — ■
Three-nuarters
Run of mine.
.Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1.10 $2.00
1.00 1.90
.90 1.80
Wainright coal has been in good demand for
domestic purposes and the mines are operating
fairlv well up to capacity.
F. O. B. F. O. B.
Goshen — Wainwright Mines — Mines. Cleveland.
Three-quarter, domestic . $1.40 $2.10
I,\nnp . 1.65 2,35
Slack . 1.70
Little Fairmont coal is finding its way to this
market. However, slack is quoted at the same
figure given last week.
F. O. B. F. O. B.
Fairmont — Mines. Cleveland.
Slack . T!16
Kentucky coals are holding their own and
proving an aid to the domestic situation in a
wav. Prices have varied little from a week ago.
F. O. B. F. O. B.
Kentucky — Mines. Cleveland.
4-inch block . $1.90@2.00 $3.15@3.25
Goshen coals [iroper are (pioted as follows:
( joshen —
Three-tiuarters
1 kj-iueb .
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1,30 $2.00
1.40 2.10
1.00 1.70
Prepared Hocking lump is selling at $1..50 per
ton at points west of here, where it is used more
freely than some other coals. Quite a little of
it is sold tlirough this market.
400
THE BLACK I)IA3I()ND
[Novem'ber 13
Cincinnati Trade.
Cincinnati, Ohio, November 11. — (Special
Correspondence.) — While there is a lessening of
demand in the domestic sizes in both splint and
smokeless varieties of coal in this territory, there
is little evidence of lessening activity in delivery.
In fact, the slow'ing down of demand for the
domestic has aided in giving a better supply of
cars for contract delivery, and operators are
bending every energy to catch up with their con¬
tract requirements, both steam and domestic, be¬
fore the weather breaks, a situation looked for
at any time. Operators are therefore cheerful
this week and look forward to a business that
will he worth while in a few weeks, the basic
conditions improving more and more as the days
go by.
Kentucky operators report that along the
Louisville & Nashville Railroad the car situation
is better this week than it has been in four
weeks, but one day showing a scarcity of cars in
most of the mines, and that not to an extent
that it did much damage. Prices in this field
are much better also, there having been an ad-
\ance by small additions for the past two or
three weeks, the advance not being questioned by
the buyer. The average price at which the or¬
dinary Kentucky coal sold at the past week, spot,
is the following; Four-inch lump, $1.75 to $2.05;
four-inch run of mine, ninety cents; nut and
slack of the lower grade, fifty cents ; of better
quality, sixty-five to seventy cents, and hard to
get most of the time. Egg has not been in good
demand, hence most of the mines are neglecting
it for run of mine, which is in good demand.
West Virginia coals have been in good de¬
mand, except as stated, in reference to domestic
sizes. There has even been good delivery of
domestic, contract coal moving along smoothly,
generally, as retail delivery is beginning to show
volume in this weather, which, though nice, has
a frosty “tang” that suggests fuel storage. The
delivery has not been as good in this field as in
the Kentucky field, because of the fact that the
railroads are not in as good shape for taking
care of the coal delivery, being busy in deliver¬
ing to the seaboard, to the lake shore and into
their own storage yards. In some cases confisca¬
tion of coal has been proceeding for some time.
A little earlier operators did not care a rap, but
recently they have begun to become anxious, for
while the railroads pay better than the average
price under these circumstances, yet they inter¬
fere with the general plan of catching up with
contract delivery.
West Virginia splint operators are still out of
the market, in many cases, and are maintaining
the prices they have reached, in good shape. Av¬
erage four-inch lump price is $1.85, nut and slack’
seventy-five cents, run of mine, spot, if it can
be had, $1, and egg, which is in good demand,
$1.25. The specials, such as Miller’s Creek, Yel¬
low Jacket, white ash, and other special brands
are in much better position than they have been
in a long time. The operations are showing
more profit and more good future business than
they have developed in a long time. There is
one feature which is disturbing the situation and
that is growing labor scarcity. The Greeks are
leaving the field or are getting ready to do so,
licing examined for passage home should their
country go to war, and they are not getting in
half time. This with the growing ease of the
car siqiply is beginning to counterbalance other
features and all tend to elevate prices, an opera¬
tion that is hailed with joy by the coal dealers
wlierever it takes place.
The situation is on the verge of satisfying all
the operations of the field with good business at
jirofitable prices.
Cincinnati Trade Notes.
I-. 11. Stone, Cincinnati manager of Jewett,
Bigelow & Brooks Company, has removed his
quarters from small offices on the twenty-sixth
floor of the LInion Central building to the tenth
lloor of the building. The new offices are com¬
modious and handsome and better adapted to
the business of the offices which has outgrown
the former quarters.
The Ohio & Kentucky Fuel Company, which
has offices in the Union Central building, has
been strengthened by the participation of W. G.
Harris of Franklin, Ky., who enters partnership
with Mr. Roy Holmyard, founder of the com¬
pany. The Ohio & Kentucky Fuel Company is
also a connection of the Continental Coal Com-
Iiany, representing that company in this terri¬
tory. The partnership began November 1st, but
Mr. Harris has not yet removed his family to
Cincinnati, although he is in the office getting
hold of the ropes. Mr. Harris is a very suc¬
cessful business man and has large tobacco in¬
terests. The company, with its new interests,
will incorporate later.
The past week saw a great number of Greeks
in West Virginia and in this section of Ohio
examined and passed for military duty in Greece,
in case that country should get into the war in
Europe. In Wheeling about seventy-five men,
mostly miners, were examined, and in other sec¬
tions many other reservists were examined and
pronounced fit. This is expected to reduce the
population of skilled miners in West Virginia
mining regions at least 250 men. The examina¬
tions are being conducted by Dr. John Kastas of
Washington, representing the Greek government.
The reservists are anxious to respond to the call,
for under the laws of Greece their property is
forfeited to the government of Greece if they
fail to respond.
Birmingham Trade.
Birmingham, Ala., November 11. — (Special
Correspondence.) — Most of the companies which
produce iron are having a large production of
coal, while the commercial coal companies are
not having such a large volume of business. This
is true also of the smaller mining companies, and
the demand with them is only fair.
Continual warm weather has caused a holding-
up of orders for domestic coal and the trade in
this class of coal may be said to be only fair.
Steam coal is not in such a large demand as
the mining people expected, most users of steam
coal are only placing limited amount of tonnage.
Coking coal is really the only trade that is in
any degree satisfactory. The large sales of iron
in this district, and the continuous running of
the furnaces make a demand for coking coal and
coke is very active with prices and output good.
The feature of last week was a sale of coke to
Italy by the Yolande Coal & Coke Company,
which sold 1,000 tons. The shipment was made
via New Orleans. A report is current that bids
are being asked on 5,000 tons for early delivery
over the sea, but this will depend largely upon
the question of securing vessels for the ship¬
ments.
J. B. McClary, at the head of the Yolande
Coal & Coke Company, Tuesday morning veri¬
fied the report of the sale and quick delivery of
1,000 tons of coke for export, and said there had
been some inquiry for further business. The
shipment is among the healthy movements in that
commodity in recent weeks, and may mean the
establishment of a steady trade. Mr. McClary
said he could not say the big order for 5,000 tons
would be secured here, but bids were being sub¬
mitted, dependent, of course, on the opportuni¬
ties for delivery.
Every ton of coke that can be produced is
needed and the prices are firm. There have been
additional offers for export coke, but manufac¬
turers are not in position to accept much of the
business because bottoms are scarce, and freight
charges are high.
The by-product ovens coke is still gaining in
esteem, and wherever offered is being accepted
by foundries and other consumers as well. The
small troubles at the by-product plant of the
Tennessee Coal, Iron & Railroad Company at
Fairfield have all been overcome, and coke mak¬
ing has not been disturbed. The repairs have also
been completed at the benzol plant, and there is
a steady production of that by-product also. Re¬
ports are again current that another by-product
plant will be erected during the early part of the
coming year, the works to be finished before the
end of the coming summer.
The Empire Coal & Coke Company has been
shipping coke in car lots to the United States-
Mexico border points, in lower California and in
Texas. It became known Tuesday morning that
a car of coke w'as started during the day bound
for Mexico, and that a big smelter was in need
of a large quantity of coke. Walter Moore, of
the I'.mpire Company, declined to give any details
of the shipment of coke into Mexico, hut ad¬
mitted that agents in California and Texas had
been ordering. Whether it was being used in
Alexico, he could not state.
The Woodward Iron Company has decided to
open another coal mine in order to secure a
larger supply of coal for its furnaces and coke
ovens, the mines at Dolomite and Mulga not fur¬
nishing as much of the commodity as is needed.
Engineers have decided to open a slope some dis¬
tance from Dolomite, but striking the same vein
of coal, giving a shorter underground haul than
the company now has at that place. The slope,
it is understood, will be sunk 600 feet and will be
equipped in the most modern manner. The work
on the mine will be commenced at once, but it
will be several months before it can be com¬
pleted. When ready for operating, a large force
of men will be employed and a much larger
amount of coal produced. The Woodward Com¬
pany is steadily making extensive improvements
and adding many men to the pay rolls. The old
bee hive coke ovens will soon be ready to be
fired and making the coke so much in demand
by the company.
Prices for October and the balance of the year;
F. O. B. F. O. B.
Bibb County Domestic —
Red ash Cahaba lump .
Mines.
$3.00
Birmingham.
$3.30
Red ash Cahaba lump .
2.76
3.10
Red Ash steam size . .
1.20@1.36
Frt. rate 30c
Jefferson County —
Fancy steam Pratt .
1.75
2.00
Run of mine Pratt .
1.20@1.25
1.45@1.60
Mary Lee lump .
1.40@1.50
1.80@1.90
Black Creek —
r'ancy steam lump .
1.75
2.05
Washed nut .
1.75
2.05
W'ashcd steam .
Frt. rate 30c
Mine run .
1.35 f® 1.40
Frt. rate 30c
Jefferson Steam Coal —
Mine run. . .
1.15@1.25
Frt. rate 30c
Walker County Domestic
Carbon Hill lump. .
Coal-
1.75
2.15
Carbon Hill egg .
1.65
2.05
Horse Creek mine run .
1.00@1.20
Frt. rate 40c
Genuine Corona —
Lump . .
2.00
2.40
Egg .
1.90
2.35
Steam sizes .
1.26@1.35
Frt. rate 4t)c
Shelby County Domestic Coal — ■
Cahaba fancy lump .
3.00
3.30
Cahaba No. 2 lump .
2.75
3.05
Montevallo domestic prices
ranging from $3.00 to $3.25,
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
St. Louis Trade.
St. Louis, Mo., November 11. — (Special Corre¬
spondence.) — Owing to the unseasonably warm
weather, which has continued throughout the
week, the coal business shows very little change.
Operators, on the other hand, have shown a very
decided intention of not cutting the price, and in
all districts the mines have been idle a day or
two on account of the want of orders. As a gen¬
eral proposition the prices prevailing are those
which were maintained before the warm weather
came upon us. In fact, there is nothing like the
market demoralization one would have expected
in former years, from the sudden slacking of the
dome.stic demand. It shows that the moral tone
among the operators is much better.
Screenings have been firm, but prices have not
advanced as much as anticipated from the
weather and the general industrial situation, both
of which have been very favorable to an ad¬
vance in the screening market.
The Standard Mines, on the whole, are doing
very well, and as an average are running about
four days a week.
Current prices are as follows;
F. O. B.
Standard Coal — Mine.
6-inch lump . $1.30
6x3-inch egg . 1.25
2-inch lump . 1.05
Steam egg . 90
No. 1 nut . 1.15
No. 2 nut . 80
Mine run . 85
Screenings . 40
F. O. B.
St. Louis.
$1.87^
1.82 Vi
1.62 Vi
1.47Vi
1.72 Vi
1.37Vi
1.42 Vi
.97Vi
The northern Illinois mines in the Staunton
district are in about the same boat as the
Standard.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.50 $2.07Vi
2-inch lump . 1.25 1.82vi
Screenings . 40 .97Vi
W’illiamson county operators are probably mov¬
ing better than any other in the state of Illinois,
owing to the fact that a quantity of railroad coal
is loaded in Williamson count)', and consequently
is not affected so much by the weather condi¬
tions.
F. 9. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.40@1.75 $2. 02V^ @2.4754
.3x2-inch nut . 1.20@1.75 1.9254 @2.47)4
Screenings . .50 1.22)4
In h'ranklin county domestic size coals arc
supreme, as the operators have shut down for
half time.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump, egg or nut . $1.75 $2.47)4
No. 2 stove . 1.50 2.22)4
Screenings . 60 1.32)4
The demand for anthracite has slacked off a
little, but is still moving freely.
Anthracite — F. O. B. St. Louis.
Chestnut . $7.55
Stove or egg . 7.30
Grate . 7.05
F. O. B. F. O. B.
Mine. St. Louis.
I.ump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.25
By-product coke (all sizes) . 4.50
The prices on Illinois soft coal, f. 0. b. East St. LoUis.
Madison, Venice or Granite City, III., are 20 cents lower
than the above quoted St. Louis prices.
No. 20]
THE BLACK DIAMOND
401
Louisville Trade.
Li)LUb\ ii.i.E, Kv., Novemlier ] l.-~(Spcctal Cor¬
respondence.) — The continued prosperity of the
coal trade in this section at the present is thrpt-
ened by the declining activity in domestic sizes
due to the long continued Indian summer. .Al¬
ready there are evidences that prices are being
shaded by producers and shippers in an effort
to keep their mines going and there is some
danger that unless operators will get together
and decide to restrict loading to three or four
days per week for the present, the market can
be rapidly over-supplied and domestic grades be
forced down to a summer price basis very
quickly.
Most coal men feel confident that all that is
needed is a week or two of cold weather to put
the market again on its feet and that funda¬
mental conditions in regard to the outlook are
still extremely good, but certain it is that car
supply has relaxed somewhat in the past ten
days and the increased shipments of domestic
coal are not being readily absorbed. Coincidently
the demand for steam coal is not quite so active
as it was several weeks back, although there is
apparently no lessening of industrial activity in
this section.
The retail coal business, both in small towns
and the principal market points, such as Louis¬
ville has dwindled to almost nothing, as there
has so far this fall been only two or three days
when it was necessary to have fire for heating
dwellings. The coldest weather experienced so
far prevailed during the latter part of August
and the early part of September and practically
the entire months of October and November to
date has been a procession of clear, mild days.
Production of coal has been extraordinarily
heavy in eastern Kentucky. A great number of
mines report that their total loading for October
was beyond any previous months. With more
plentiful car supply November loading promises
to be as large, if not larger. In view of this
situation a decline in prices must be expected
unless operators get together and restrict their
tonnage.
There is no change in the retail coal situation
in Louisville where prices are still maintained on
a basis that makes the handling of every ton of
coal an expense — or very little if any profit — to
the dealers. All of the rail coal dealers would
he glad to advance prices twenty-five to fifty
cents per ton and earn a profit on their business,
but the stumbling block seems to be one or two
of the river coal dealers. Possibly the situa¬
tion will not be solved until the sources of sup¬
ply both of rail and river coal compel a radical
advance of price, in which event dealers may be
wise enough to fix and maintain their new prices
on a basis which will permit a profit.
The prices on high grade eastern Kentucky
block coal range from $1.6.5 to $2.10 f. o. b.
mines; lump, .$1.50 to $1.85; egg, $1.20 to $1.50;
straight mine run, $1 to $1.10; high grade nut
and slack, sixty to seventy cents ; low grade nut
and slack, thirty to fifty cents.
Detroit Trade.
Detroit, Mich., November 11. — (Special Cor¬
respondence.) — Following a slight spurt of ac¬
tivity the latter part of last week the steam coal
trade has relapsed into a more sluggish condi¬
tion.
While current sales continue to represent a
considerable tonnage in the aggregate, buyers
seem to be more dilatory in placing their orders
and their attitude of holding off is reflected in a
noticeable reduction of business. The situation
has been aggravated to some extent by the strike
of Michigan Central railroad clerks, which had
the effect of holding liack shipments and in one
instance, at least, is said to have come very near
delaying delivery until a large manufacturing
plant was in imminent peril of being forced to
suspend operations for lack of fuel supply. The
movement of freight over the Michigan Central
is said to be proceeding more freely this week.
Fine coals seem to find a readier market than
the larger sizes, although customers for lump and
egg also are found with a little more effort. The
amount of consignment coal here is not, just
now, causing much annoyance and the offerings
of such stock at prices below mine schedule are
not very frequent. Such sales are reported, how¬
ever.
Temperature conditions have not yet become
severe enough to produce any important demand
for domestic coal. Hocking and Jackson Hill
lump show a moderate degree of activity. Retail
dealers appear to have considerable stock remain¬
ing to be sold before they will he ready to do
much new buying.
Complaint is heard that car shortage is soon
likely to become an important factor in the situ¬
ation, hut no serious trouble has yet developed.
The lack of cars is said to be especially notice¬
able in the Penn.sylvania mine districts.
In the anthracite trade, business also falls be¬
low the expectations of shippers, although re¬
tailers have been handling some business that
was withheld by customers, who usually do their
buying earlier in the year. The car shortage on
eastern lines is not noticeably hindering ship¬
ments.
Coal shipments to the head of Lake Superior in
October made a better showing than was ex¬
pected, the movement of 1, 643,283 tons of soft
coal, comparing with 1,601,111 tons in October,
1914, and with 1,697,821 tons in the similar month
two years ago, while hard coal shipments of
260,188 tons, were an increase in contrast to 237,-
710 tons a vear ago, though under the October,
1913, total of 292,690 tons.
Prices in the local
market on mine
shipment
orders are as follows:
F. O. B.
F. O. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
. $1.00
$2.40
Mine run .
. .90
2.30
Slack .
2.00@2.15
West Virginia Splint —
rour-inch lump .
. 1.46@1.75
2.85@3.15
Two-inch lump .
. 1.20@1.40
2.60@2.80
Three-quarter .
. 1.10
2.50
Mine run .
2.30
Nut, pea and slack .
1.95@2.05
Smokeless —
Lump and egg .
. 2.25
3.85
Nut .
. 1.75
3.35
Slack .
Open
Mine run .
3.00
Kentucky Splint —
Lumj) .
3.15@3.40
I'-gg .
. 1.25@1.40
2.65@2.80
Nut, pea and slack .
. .66
2.05
Fairmount —
Three-quarter steam lump.
. 86@ .95
S.25@2.36
Mine run .
. 70@ .80
2.1002.20
Slack .
Open
Hocking Valley —
Sh.iker three-inch lunp...
. 1.7.')
2.90
Shaker egg and nut .
. 1.15
2.30
Domestic lump .
. 1.50
2.65
Three-quarter lump .
. 1.35
2.40
Mine run .
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
. 1.05
2.20
Mine run .
. .95
2.10
Slack .
Open
Jackson Hill —
Domestic lump .
. 2.50
3.65
Cambridge —
Three-quarter lump .
. 1.20
2.35
Mine run .
. 1.10
2.25
Pomeroy —
Two and three-inch lump.
. 1.60
2.75
Fgg .
. 1.35
2.50
Slack .
Open
Indianapolis Trade.
Iniii.\n.'>iPoi,is, Ind., November 11. — ■(.'Special
Correspondence.) — The demand for steam coal is
improving slowly but quite steadily in Indiana,
l)ut prices remain the same as they have been for
several weeks. The demand for domestic coal is
about the same as it was a week ago. It is not
moving rapidly for the reason that the weather is
against the trade. However, prices are holding
up fairlv well. The encouraging feature of the
market is the increasing demand for steam coal
indicating that the long delayed revival in busi¬
ness may be about due. President Kurrie of the
Monon Railroad while here this week sounded an
optimistic note when he said that the business on
his line is increasing and that October was the
Iiest month in its history. He pointed out that
the Monon is a north and south road and that
its increased prosperity cannot lie charged up to
hauling war orders. The increase comes from
coal, stone and other products. President Kur-
rie's statement is one of the most cheerful given
out here in a long time and it is significant since
it is hacked up with figures. The movement of
steam coal is now fairly strohg, wliile domestic,
although it is less than it was a month ago, is
fairly steady. The retailers are enjoying a fairly
good trade and it is said that collections are
much better than they were a few weeks ago.
The following prices are being (jiioted by the
wholesalers :
F. O. B.
F. O. B.
Indiana^
Mines.
Indianapolis.
Mine run, No. 4 .
$1.60@1.60
Mine run, Nos. 5 and 6 .
.... 1 . 0 5 {3 1 . 1 5
1..55@1.65
Nut .
. 1.20@1.30
1.70@1.80
Kgg .
. 1.30@1.40
1.80@1.90
I'/i-inch steam lump .
.... L25(ffi 1.35
].75@>1.8r)
No. 4 screenings .
1.20(^1.25
Nos. 5 and G screenings .
1.05® 1.1.')
3*/4-inch domestic No. 4 .
, . . . . 1 .50(2) 1.55
2.oo@i2.nr.
No. 4 domestic .
. i.ooiai.o'i
2.10@2.1.5
Nos. 5 arul 6 domestic .
. |.40(®1.60
1.90@i2.10
l»ra?il block domestic . .
. 2.25@2..')0
2.75 @2. .'■.II
No. 1 washed coal .
. 1.75
2.25
No. 2 washed coal . 1.65 2.15
Southern Indiana Field —
Mine run . 1.05@1.10 .
Domestic lump . 1.40@1.50 .
Twin Cities Market.
Min.xeai’olis, Minn, Novemlier 11. — (Special
Correspondence.) — As usual at this season of
tlie year, the coal business has resolved itself into
a weather proposition, and while all grades of
coal are in fair demand, there is not the snap to
the trade there would he under more favoralile
weather conditions.
Dealers, as well as consumers, have yielded to
the allurements of the weather man to such an
extent they order coal as they would eggs, and
expect it to be delivered with the same prompt¬
ness. While bins are full, their capacity is small
and real old-fashioned November weather will
soon deplete them and set the telephones and
telegraph wires a tingle wdth hurryup orders.
These conditions are coming to an end, how¬
ever, for today the local weather bureau has is¬
sued a storm bulletin warning shippers of the
approach of a cold wave, and in consequence re¬
newed activity may he looked for wdth confi¬
dence, and as the heavy coal movement w’ill come
simultaneously with the tremendous grain move¬
ment now in progress, a more or less serious car
shortage liids fair to develop. The dealers who
are foresighted enough to place orders in ad¬
vance of their requirements will he in clover
while their slower competitors will liemoan tlieir
lack of wisdom.
The enormous crop movement is in full swing
and it is considered a poor day when less than
a thousand or fifteen hundred cars of grain are
received on the Minneapolis market. The mills
are lireaking all records in the production of flour
and have sufficient orders hooked ahead to keep
them Inisy for w'eeks to come.
Prices are firm on Illinois coal and dealers are
getting over their former tendency to shop
around before placing orders. The advance in
freight rates of ten cents per ton on coal from
Indiana and Illinois has caused several large
users of steam coal to turn to the docks for their
supply and in most instances they have been able
to fill their requirements at prices twenty-live to
fifty cents under circular. The Illinois shippers
feel this loss of business keenly and only the fu¬
ture can determine how serious the inroads on
their business will he.
Dock prices on soft coal are becoming firmer,
although there is complaint of some cutting on
team delivery to the larger users of steam coal in
the Tw’in Cities. It is believed, however, that the
advent of real winter and the increased demand
from manufacturing plants, all of whom are
practically on a full-time basis, will serve to stif¬
fen prices and thus restore the parity between
the docks and Illinois shippers.
Current prices on coal sold in this market are
as follows:
.■\XT1IR.\CITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Kgg . 6.85 8.05
Stove . 6.85 8.05
Xut . 7.10 8.30
I^ea . 5.50 6.70
Huckwhent . LOO 5.20
BITUMINOUS.
Splint, screened lump and stove.!
$3.30@3.40
$4.26@4.36
Splint, dock run .
3.10
4.06
Hocking, screened lump and stove
3.30@3.40
4.26@4.36
Hocking, dock run .
.1.00
3.96
Voughioglieny, gas, lump and stove
3.:i()@3.40
4.26@4.36
Voughioghenv, gas, dock run .
Pittsburgh vein, lump .
3.10
1.06
4.26@4.36
Pittsburgh vein, dock run .
.‘LCD
3.96
Pocahontas, screened lump or egg
Pocahontas, screened lump aiul
4.75
5.71
egg mixed .
l..■in
.5.46
l*ocahontas. mine run .
3.25
4.21
Cannel, lump .
5.25
6.21
.'smithing, hulk .
1.2.')
5.21
Smithing, in 100 lb. sacks .
6.00
Briquets, anthracite .
5.00
5.96
Briquets, smokeless .
.).00
5.96
In the Illinois trade the
range of
prices on
.southern Illinois product on
as follows:
the various sizes is
Southern Illinois chunks . $l.65@ 1.7.5
Southern Illinois egg . 1. 65@ 1.7.5
Southern Illinois No. 1 nut . 1.6.5@1.75
Southern Illinois No. 2 nut . 1.40@l.'>0
Southern Illinois No. 3 nut . 1.10@1.2.)
Southern Illinois run of mine.... 1.15(®1.25
Southern Illinois 2*in. screenings.. .60@ .70
$.3.95@4.05
3.0.5@4.0.)
3.95@4.0.5
3.70(®3.80
:5.40@3..55
,3. 45 @.3. .5 5
3.90@4.00
Southern Illinois includes l-'ranklin county,
Harrisburg and Williamson count\'.
Col. T. N. Morduc of Castner, Curran &• Bul¬
litt spent several days calling on friends in the
trade this week.
402
[Novem'ber 13
THE BLACK DIAMOND.
New York Trade.
Anthracite Market Healthy With Pro¬
duction at Maximum — Bituminous
Strong.
Office of The Rl.'vck Diamonh,
New York, November 11.
'I'he anthracite market can be .said to lie very
healthy. While the wholesalers report retail buy¬
ing not as active as, say, a week or ten days ago,
yet there is sufficient new business coming in
from day to day, together with unfdled orders,
to take care of the full output of the mines,
which just now are running at capacity, or as
near that state as labor and car supply will
permit. Car shortage in the anthracite regions
has not reached the acute stage that it has in
the bituminous fields, but every day or so col¬
lieries here and there are not able to work
full because of insufficient cars.
Most of the companies report egg easy, with
stove and chestnut receiving the most urgent
call. Some individuals are selling egg at ten
to fifteen cents off circular. Chestnut with most
individuals is short. This is also true with com¬
panies that have a western outlet. Shipments
west have been greatly delayed, both the lake and
all-rail. Lake shipments have been held up, due
to the lack of vessels. This has caused some
accumulation of loaded cars between the mines
and Buffalo. This is one reason for a shortage
of cars at certain mines.
Moreover, there is a big call just now for ship¬
ments to western points all-rail. These ship¬
ments have been very much delayed because suit¬
able cars cannot be obtained. In the east the
all-rail trade is the most active.
Anthracite shipments for October, aggregating
(),d05,892 tons, as compared with 6,644,476 tons
in October, 1914, are given in detail elsewhere in
this issue. For the first ten months of the year
shipments aggregated 53,885,003 tons, a decrease
of 3,827,054 tons as compared with the first ten
months of 1914. Stocks at tidewater on Octo¬
ber 31 were 625,821 tons, as compared with 633,-
338 tons on hand September 30, a decrease of
7,517 tons for the month.
Steam sizes are strong. Pea coal is very scarce
with certain shippers, offers at tidewater being
very few. The all-rail trade is apparently ab¬
sorbing a great deal of pea just now. This size
in greater New York city has practically ceased
to fill a large need as a steam coal. Number 1
buckwheat is strong, and the full circular is
readily obtained for good grades. Cheaper grades
sell at fifteen to twenty cents below circular.
Rice is very active, especially on choice grades.
Barley sells at $1.75 and up, and is in fair de¬
mand.
Upper Lower
Ports. Ports.
Broken . $5.10 $5.00
Pgg . 5.35 5.25
Stove . 5.35 5.25
Chestnut . 6.60 5.50
Pea . 3.55 3.45
Special grades of red ash and other high-
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
Spot prices in individual coals at lower
ports are about as follows:
ligg . $5.05 and up
Stove . 5.20 and up
Nut . 5.20 and up
Pea . 3.25 and up
Buck . 2.30 and up
Rice . 2.00 and up
Barley . 1.75 and up
The Bituminous Situation.
The bituminous situation continues strong.
While spot demand is not so insistent, except in
few instances, yet there seems to be a tendency
on the part of some of the very large consumers
to increase their contract shipments, and in such
instances large shippers are known to have been
scouring the spot market for desirable qualities
of coal evidently to use on contract purposes.
The railroads continue to stock coal though this
work is not taking tonnage on the scale as was
the case in September.
Practically in every region that ships coal east¬
ern producers have sufficient orders to keep their
mines going on as full time as labor and car
supply will permit. Some of the producers can
ship easily fifty per cent more coal than they are
producing upon contract requirements. This
means that they have consumers as customers
who would stock some coal just about now were
they able to secure it.
Prices continue strong, mine prices on Penn¬
sylvania grades ranging from $1.15 up. Tide¬
water prices at New York harbor ports range
from $2.75 up, and only a small amount of free
coal is to be found at the ports. Slack has sold
upwards of $1 at the mines. Shippers say that
car supply is very bad, and that while there may
be ample coal cars on Monday and Tuesday of
each week, that the supply will be very short
during the remainder of the week. Some com¬
plaint is made about the delay in transportation
of coal from the mines to destination, but con¬
sidering the very heavy amount of munitions,
grain and merchandise of all kinds that is being
rushed to the seaboard at this time, the coal
movement can be said to be very fair.
The Vessel Situation.
Coastwise rates are very firm, and vessels read¬
ily secure $1 from Hampton Roads to Boston.
It is believed in some quarters that rates will
go even higher, as there is very little tonnage
open, a great deal of tonnage having been placed
under contract recently. From Baltimore and
Philadelphia to New England points rates are
also strong, while rates from New York via
the sound are strong.
Off-shore rates, especially to the Mediter¬
ranean, are very stiff, the rate of 70s to 75s to
the west coast of Italy prevailing this week, mak¬
ing exports practically prohibitive at this time.
We quote current rates on freight as follows:
From Hampton Roads to Boston, eighty-five
cents to $1 is about the range ; to Portland and
points east of Boston, from ninety-five centS' to
$1.10. To sound points, eighty to eighty-five
cents. From Philadelphia to New England
points, about five cents under the Hampton Roads
rates.
From New York to sound points as follows:
Bridgeport, thirty-five cents; New Haven, forty-
five cents; Providence, fifty cents; New Bed¬
ford, fifty-five cents. To Boston, around cape,
sixty to seventy cents ; through canal, seventy-
five to eighty cents. Harbor rates twenty to
twenty-five cents.
Current quotations on bituminous coal in spot
lots are :
F. O. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
$1.40
Ordinary .
1.20
Medium grades .
1.15
Cambria County —
Best Miller vein .
. 3.00
1.45
Medium grades .
. 2.80
1.25
Cheaper grades .
1.15
Clearfield County —
Best grade .
. 3.00
1,35
Ordinary grades .
. 2.70
1.15
Indiana County —
Best grade .
. 2.80
1.25
Medium grade .
. 2.70
1.15
Maryland —
Georges Creek big vein .
. 3.15
1.65
West Virginia —
Ordinary grades .
. 2.65
1.10
P.est gas, ^-inch lump .
. 2.00
1.30
Best grade, run of mine .
. 2.70
.95
Gas slack .
.90@1.15
New York Trade Briefs.
J. L. Rilley, of Duncan & Spangler of Phila¬
delphia, was in New York Monday.
Fred McCann and W. J. Osgood, of the E. M.
Alden Company of Boston, were visitors to New
York City Monday.
James Gregory of Ira Gregory & Co., an old
established retail concern of Bridgeport, Conn.,
was in New York City on Monday.
A. S. Cary, vice-president of the Eastern Coal
& Export Corporation, of Richmond, Va., was a
visitor to New York City on Monday.
At a directors’ meeting of the New York, New
Haven & Hartford Railroad held on Tuesday,
George G. Yeomans was appointed purchasing-
agent,- to succeed H. A. Fabian, who resigned.
R. R. Bunnell, formerly representing the
Skeele Coal Company, Massachusetts, resigned
effective last week, to become eastern representa¬
tive of the Seiler-BIanchard Company of New
York. He will make his headquarters in Spring-
field, Mass.
A well known bituminous operator said on
Monday that labor is usually short on Mondays
and Tuesdays, whereas the car supply is good,
and that during the remainder of the week labor
is plentiful and car supply short. He stated that
during the month of October the Baltimore &
Ohio furnished about seventy-four per cent of a
full car supply, but that, due to the inability of
certain operators to make the car and labor sup¬
ply tongue and groove, that some of them barely
got out more than fifty per cent of their normal
output during the month.
Joseph Morrison, Jr., president of the Clarks¬
burg Coal Mining Company, recently returned
to his New York office after a visit to the opera¬
tions of his company in West Virginia. Mr.
Morrison reports that the coal trade in the Fair¬
mont region was very active, with car supply
very short. He has recently purchased a new
gasoline motor to use in his mine, and the daily
production will be materially increased.
A French trade commission, representing the
industrial, commercial, agricultural and banking
interests of France, arrived in New York on
Tuesday. This commission, consisting of five
members, have come to this country as repre¬
sentatives of the French government to study in¬
dustrial conditions in the United States. It is
stated that heavy purchases of machinery will
be made by the commission before leaving for
France. France has been spending about $160,-
000,000 a year in Germany for machinery, and
it is stated that in the future, or for a number
of years at least, France will take its machinery
supplies from the United States. France figures
that labor is going to be very scarce following
the war, and that the section of the country that
has been occupied by Germany, in which war
has been raging for more than a year, will need
complete rebuilding. As a member of the com¬
mission puts it: “There is plenty of business
for our manufacturers, Init there is not enough
labor. With the population reduced by the war
we will be compelled to equip our factories with
modern machinery that will take the place of
hand labor. We expect to buy certain machinery
in the United States. Our object is to modernize
the factories destroyed by the war. This coun¬
try must furnish the machinery material for re¬
building the industries of France. We undertake
to strengthen the trade relations between France
and America, and the work of this mission will
last five or more years after peace has been
declared. About $160,000,000 a year is spent by
France in Germany for machinery alone, and is
a very small estimate of what will be spent by
our people in America when trade conditions be¬
come normal.’’
Buffalo Trade.
Buffalo, N. Y., November 11. — (Special Cor¬
respondence.) — The shipments of anthracite hy
lake for the past week were 109,800 tons, which
is a low average for this time of year. The car¬
goes cleared as follows: Duluth-Superior, 36,000
tons; Chicago, 25,400; Fort William, 19,500;
Milwaukee, 16,300; Sheboygan, 6,600; Waukegan,
5,500; Port Huron, 500. The number of cargoes
averages about three a day, while the number of
vessels leaving here light is several times that
many.
The demand for vessels to bring wheat from
Lake Superior ports and the lack of grain at
Lake Michigan ports have made it difficult to get
tonnage for the latter route. But for the fact
that coal shippers have contracted for vessels
largely the rates would go very high. A few car¬
goes have been taken for Milwaukee at fifty
cents, as compared with thirty early in the sea¬
son, and brokers say that none could be obtained
at the former figure now. Shippers are offering
seventy-five cents to ports like Racine and
Kenosha. The vessels taking these cargoes are
lialde to be sent to Lake Superior light after
grain, which accounts for the dislike of going to
Lake Michigan. ^
A fairly good demand for anthracite prevails
just now, with a large share of it centered in
chestnut, which is more active than for some
weeks. The weather has been seasonably chilly
and a large quantity of coal has lately been con¬
sumed, so that dealers’ stocks have needed con¬
siderable replenishment. The lack of cars con¬
tinues and coal is not coming forward as fast
as desired. Any sudden change to still colder
weather would result in a large amount of buy¬
ing and it would be impossible for the companies
to fill their orders promptly.
The bituminous trade is steady and the volume
is larger than a few weeks ago. Disappointment
exists, however, that it is not still heavier, and
for'this condition the lack of demand for coal on
a large scale by Canada is assigned. The
Canadian market is much depressed and from
some sections it is reported that coal is so plenti¬
ful that prices are hardly up to what they are in
Buffalo. But the market generally shows in¬
creased strength and no big amounts of consign¬
ment coal are threatening it.
The strength of the coke market continues and
prices are the . highest they have been this year.
For seventy-two hour Connellsville foundry coke
buyers have to pay at least $4.8.5, while furnace
and stock coke are both very strong.
No. 20]
THE BLACK DIAMOND
403
Philadelphia Trade.
Feeling in Anthracite Trade Good With
Demand Firm — Bituminous
Steady.
Office of The Black Diamond,
1400 Land Title Building,
Phil.adelphia, November 11.
Business breezes along at the same steady gait
that has been set for the past couple of months
and both hard and soft coal men who were in¬
clined to believe that it was only a flurry that
"shot things along” are changing their opinion of
the market in general.
In the anthracite lines there has been a better
feeling shown in the past week than, really, since
the season for hard coal sales opened. While the
estimated decrease in the tonnage was not as high
as was forecasted still the shortage is well within
the three million mark in production for this
year as against last. This in itself is an indica¬
tion that there will not be a volume of coal on
hand when the real cold weather comes. The
mines are running full time and there has been
no untoward conditions in the regions so far to
contend with, so even soft weather conditions
have not been the detriment that they usually are.
In this market pea is again “the top of the
heap.” Demand for this — the poor man’s fuel —
has again risen to its usual November volume
and the raise in price of twenty-five cents on the
ton did not in any way cut down on deliveries.
Nut coal also has been in strong demand, with
chestnut closely trailing it. The buckwheat and
smaller sizes are well taken and the demand in¬
creased considerably with cooler weather the
forepart of the week.
In the retail lines there was an endeavor to get
the price cutters and those who have slashed even
lower, together and show them the fallacy of
their position. This came about through the
medium of the Coal Exchange. The effort came
to little, however, for the dealers who have been
underselling held to their position that it was
strictly their own affair whether or not they
wanted to undersell competitors.
Bituminous Situation.
Little change has been observed in the market
here in the last week. The even keel on which
soft coals have been sold during the last couple
of weeks continues. The yards at the piers are
kept clear of any great amount of free coal and
spot sales are made at varying prices.
The Pennsylvania railroad, which has been
stocking coal since September, placed a time limit
on deliveries for their requirements at November
10. This has again been raised and deliveries
will be made on this up to the last of the month.
The effect of this will be that Greensburg coals
will be practically out of the market until that
time. For the past six weeks quotations on these
have not lieen made, unless for a scattering car
or two.
The Fairmont coals, after an up-turn in price
that reached as high as $1.15, have settled back
and could be bought from ninety cents to a dol¬
lar. Fairmont business in this market always
has peculiar angles and this time it was in the
fact that the above price took in anything from
nm-of-mine, slack or three-quarter inch screened
lump.
Clearfield and Somerset coals are held from
$1.15 up. The “up” in this instance’ meaning that
higher grades can be bought for the price that
the mine operators hold them. And this consti¬
tutes another peculiar twist to the market. The
operators have set ideas on what their coals
should bring, delivered, and there have been in¬
stances within the week where coal could be
bought cheaper at the piers than from the mouth
of the pit.
Philadelphia News Notes.
Mr. Burton of Burton, Smith & Co., of Boston,
was in the city this week.
W. H, Patterson of the Jaffa Coal Company
of Clearfield was seen afnong the trade on Tues¬
day.
J. E. Atkinson, of the Excelsior Coal & Coke
Company of Harrisburg, was one of the trade
visitors of the week.
R. B. Isner, assistant general manager of the
Davis Colliery Company at Elkins, W. 'Va., made
a call at the local office while on a trip east this
week.
R. H. Knode of the National Fuel Company of
Pittsburgh was one of the trade visitors of the
week. Other Pittsburgh representatives who
were in the city were George Pauli of the Com¬
monwealth Fuel Company and J. H. Hillman,
Jr., of J. H. Hillman & Sons Company.
H. C. Pearson and John Kuhn of the local of¬
fice of the Van Wickle estate were in Hazleton
during the early part of the week looking over
the properties of their company.
Morris B. Williams, president of the Susque¬
hanna Coal Company, returned last week from an
extended trip to the west, on which he reviewed
the trade situation as far as Chicago.
W. S. McDowell, retail dealer in Chester, was
one of the coal men on whom political office has
been thrust. Mr. McDowell was elected mayor
of Chester, Pa., at the recent elections.
R. Havemeyer and W. F. English of the New
York office and Lloyd McCrum of the Victor
Coal Company, Somerset, were callers at the W.
H. Bradford & Co.’s offices within the week.
W. J. White, who was formerly general man¬
ager of the operations of the Brownfield Coal &
Coke Company at Uniontown, Pa., has joined the
local sales force of the Gano, Moore Company.
E. H. Hemingway, of W. C. Mason & Co. of
Hartford, Conn., was in the city this week. Other
New England visitors w ;re A. R. Kloten of W.
C. Saxton & Co. of Albany, N. Y., and A. P.
Bryant ot the Spring Coal Company of Boston.
The “Jonancy,” the new 5,000-ton collier built
by the New York Shipbuilding Company for the
Pocahontas Navigation Company, was launched
at the company’s yards in Camden on Tuesday of
this week. She will be placed in the New Eng¬
land trade as soon as completed.
The Emmons Coal Mining Company, which has
been located on the twelfth floor of the Land
Title building for more than a year, moved to
larger and more commodious quarters on the
eighth floor of the same location this week. With
the move came also an enlargement of office
force, equipment and furniture.
J. Blair Kennerly has leased a going property
of 550 acres on the Baltimore & Ohio Railway
in Somerset county on which he will make some
improvements and expects to be ready to ship
about January 1, 1916. Shakers for making lump
and egg will be installed a,nd special attention
will be given to preparation for the western
markets.
Dr. C. W. A. Veditz, United States commercial
attache to the consular service of Spain and
France, a former Philadelphian, has returned
from several months spent abroad. He is highly
enthusiastic over the broad scope that American
coal would have in the countries named. Dr.
Veditz is making his headquarters at the Cham¬
ber of Commerce and is most willing to supply
information to those who are interested in ex¬
port trade.
Though a recent news note in another paper
would have it that there was quite a little mys¬
tery in the awarding of a contract for the coal
supply of the Frankford arsenal, a little investi¬
gation reveals nothing of the kind. When bids
were asked last June for this supply it was for
six months only. The federal government had
plans for a change in stokerage at the arsenal
and this would change the type of coal to be
used. It was hoped to have them installed by the
fall. This, however, was found to be impossible
and the same contract as was offered in June was
again opened. The George B, Newton Coal Com¬
pany was the lucky bidder and got the contract at
$2.78 a ton delivered.
A deal was consummated early in the week by
which the Midlothian Coal Company, a property
operated by Percy Heilner & Son at Dudley in
Huntingdon county, was turned over to other
interests. The new owners will continue to op¬
erate the property under the former company
name. W. H. Bradford is the new president and
R. R. Reutlinger, secretary-treasurer. The output
of the mines will be sold through the W. H.
Bradford Company, Inc., of this city. The Mid¬
lothian property was opened within the past year
and the new owners are already arranging to in¬
crease its output.
All sorts of speculation is being indulged in
by the local newspapers as to the result of the
return of the state tax on hard coal to the retail
merchants. Philadelphia, being one of the largest
users of anthracite for household purposes, is
particularly interested in whether or no the con¬
sumer is to get some of the money that has been
going toward an anticipated collection of the
odious tax. Interviews, ad. lib. have been pub¬
lished to indicate that the small consumer is
likely to receive little sympathy from the retailer.
Inability to trace sales affected by the tax is
given as one reason, while another is whether or
no the retailers allowed for the whole absorption
of the tax fixing their price. In the case of
the large consumers where tax charges were
added outright and so specified on the bills, there
will be no question as to these people getting the
return of money that the tax charge would indi¬
cate. Few retailers, if any, made such indication
on their bills to users of small tonnage — and
there you are. Into this sorry muddle the news¬
papers have injected a demand that there be an
immediate reduction of twenty-five cents a ton
on retail prices. This is ludicrous. The 1915
law is still in effect. The companies say that no
return can be made until the unconstitutionality
of the law is admitted by the state.
A dispatch from Scranton Pa., on November
9th, says that bond and trust note holders of the
Lackawanna Coal & Lumber Company, one of
the T. J. Foster-W. L. Connell enterprises, to
the number of 150 met here this afternoon for
the purpose of devising some plan of saving the
company from the financial rocks.
According to W. L. Connell, president of the
company, who gave out a statement following
the meeting, fifty-five per cent of the bonds were
represented at today’s meeting and it was purely
an administration gathering. All the proposi¬
tions submitted by Mr. Connell were unani¬
mously adopted. The main one was that bond
and note holders who have not yet done so
subscribe up to six per cent of their holdings
of new bonds of the company to be issued at
seventy-five per cent of their par value, with a
fifty per cent bonus in stock of the company. It
is also proposed that the bond and note holders
surrender their 1915 and 1916 coupons and their
short term notes for preferred stock of the
company, which it is proposed to issue.
Under the resolution it was also decided to
increase the board of directors by five members
to be chosen from the bondholders, and it was
announced at the conclusion of the gathering that
those chosen as members of the board were Ed¬
ward F. Fletcher, former mayor of Worcester,
Mass.; James N. McKinney, iron manufacturer,
of Albany, N. Y. ; F. M. Benning, D. L. and
W. Superintendent, Hoboken, N. J.; Calvin G.
Turner, of Wilmington, Del., and George S.
Evans, of New York.
Following the meeting. President Connell gave
out a statement to the press in which he declared
that the action of the bondholders relieved the
company from all overload charges for a period
of two years, placed it upon a strong financial
basis and gave the management enough money
to make improvements necessary to the prop¬
erty.
Duluth Trade.
Duluth, Minn., November 11. — (Special Cor¬
respondence.) — As compared to October, 1914,
the same month this year was short 209,144 tons
in receipts of soft coal, and ahead by 26,493 tons
of hard coal. This is just about in line with the
situation a:s between the two seasons to date. In
hard coal, up to November 1st, this year, 74,920
tons more were received than last year at the
head of the lakes, and the soft coal receipts are
1,735,687 tons less.
The fact that a much larger percentage of soft
coal was left on the docks when the navigation
season opened this year than in almost any other
year in the history of this port as a distributing
point, is the chief factor in explanation of the
shortage of receipts this season. But coal dock
superintendents express a doubt as to whether
or not there will be enough coal for the winter’s
needs.
The total receipts to November 1st, this year
and last, were as follows :
Anthracite.
Bituminous.
Total.
1014 .
_ 1,276,000
7,346,000
8,623,60
1915 .
_ 1,351,520
5,610,313
6,961,833
The receipts last month, by
companies,
were as
follows :
Anthracite,
Bituminous,
Total,
Tons,
Tons,
Tons,
Northwestern ...
. 47,000
70,568
117,568
Pittsburgh .
. 39,300
69,000
108,300
Berwind .
77,600
86,600
Steel Corp .
163,500
163,000
Ilanna .
. 11.000
75,000
86,000
Reiss .
. 14,500
78,500
93,000
Carnegie .
. 14,000
59,000
73,000
Zenith .
67,500
67,500
Clarkson .
. 3,000
61.000
64,000
Great I.akes .
47,500
29,000
47,500
P. & R .
. 22,500
51,500
Northern .
. 9,500
28,000
37,500
Lehigh Valley . . . .
. 19,500
19,500
Sunday Creek .
. 26,000
26,000
Island Creek .
29,000
29,000
Boston .
. 7,000
5,000
12,000
Totals .
. 223,300
860,168
1,082,468
Novemlier, to date, shows even a heavier fall¬
ing off in receipts than that shown in October.
404
THE BLACK DIAMOND
[November 13
New England Trade
Bost(jn, N()venil)cr II. — {Sficcial Corcspoiid-
I’licc.) — The atmosphere in tlie local wholesale
hituminous trade seems less depressing than it
was a week ago. Xo further statements have
been given out hy the Darrow-Mann Company,
the New England Coal & Coke Company, or
other price-warring factions. It would seem then
that the better feeling in the trade is due more
to a revival of business rather than to any
prospects of a peaceful settlement of 1916-17
prices.
Unknown to the trade, however, there is a very
strong possibility that no more 1916-17 price con¬
cessions will be announced by New England dis¬
tributors. A week or so ago, when everybody
was completely upset over price reductions, one
of the interests is reputed to have got busy, and
within a few days secured every inch of avail¬
able open 1916-17 barge and steamer space. In
other words, they practically cornered the avail¬
able water freight market, which naturally places
the company in a decidedly favorable position as
to transportation, and at the same time makes
further bituminous price concessions by other
concerns a rather dangerous undertaking. The
sharp advance in water freights during the past
week clearly demonstrates that vessel space is
in limited supply.
Another feature of the present price-war is
that some of the firms engaged in it have been
unable to book as much 1916-17 business as they
had hoped to; consequently further cuts are not
probable. Consumers and retail distributors, as
a whole, have not been in sympathy with the
price war for the reason that wholesale distribu¬
tors have not, in some cases, signified their in¬
tention of selling coal at prices named in con¬
tracts unless the vessel freight rate market re¬
mained at the level quoted a week ago, or de¬
clined. The possibility of being “sewed in” with
a distributor on a contract governed largely by
water freights and with possibilities of further
])rice concessions hy other distributors has caused
most prospective buyers to hold off for further
development. As matters are today, however, the
chances are that 1916-17 prices will go no lower
unless a sudden ending of the European war
should throw upon the market a large amount of
additional steamer space. The end of the Euro-
Iiean war seems a long way off, notwithstanding
Wall street reports to the contrary, and con¬
sumers in buying coal should make certain that
the seller will be able to deliver it next year.
Wholesalers say the demand for old contract
coals is all that could be desired. No one hears
of requests for deferred deliveries these days,
a fact attributed by some houses to the fact that
supplies will be cheaper next year and that the
water supply of many mills, etc., has been greatly
reduced within the past fortnight. Then, too,
hotels, office buildings and apartments are con¬
suming more bituminous and this helps to deplete
stocks held by the retail trade. One actually
hears of new contracts for this season’s deliv¬
ery on a basis of f. o. b. Hampton Roads
ports for New River and Pocahontas. There is
still plenty of coal at loading ports, but there
is .some question of getting it to Boston. Some
of the wholesalers are not finding space and for
lhat reason not overjoyed at having taken on
new business. .\t Mystic Wharf more New
River and Pocahontas has sold at $:!.75 per ton
on cars during the past week than has been the
case before in a long time. That market is very-
far from active, however, and a buyer of large
amounts could undoubtedly secure same at less
than $.3.7.5. Georges Creek, at iMystic Wharf,
is quiet, but very firm at $4 per ton or better.
Pennsylvania bituminous is higher at $1.10 to
$1.65 per ton on cars at the mines. A week ago
they were $1.05 to $1.60. Car shortage is one rea¬
son for the advance in Pennsylvania coals.
The car shortage is not limited to the bitu-
Ttiinous field, however. .All-rail anthracite has
been coming along slowly and the freight con¬
gestion at Harlem river has not helped. The
demand for all-rail coal, particularly at Con¬
necticut points, is excellent. Many cargoes have
been disposed of since last reports in addition
to the all-rail business. Lynn, Salem. Beverly,
Boston, Providence and Pawtucket have all
figured prominently in takings of large lots of
anthracite. The best part of business is that the
demand runs to all sizes, but stove, as of old,
is the best seller. Egg is in better demand than
it has been before in a long time, and nut
sells well. The demand for pea, as one dealer
puts it, is “fine” and supplies are quite small.
Broken is being taken every day on a basis of
$5.10 per ton alongside Boston Harbor. There
is just enough buckwheat coming along to fill
contracts, and dealers in almost every instance
will not take new orders, as they will have all
they can do to su])ply consumers’ needs up to
.April Is't.
Vessel space from Ham|)tun Roads ports to
Boston is now quoted around $1 per ton, and
there is nothing in view to indicate lower prices.
Erom New York to Boston the market is very
strong at fifty to fifty-five cents a ton.
Baltimore Trade.
Baltimore, November 11. — (Special Corre¬
spondence.') — The export coal business from
Baltirnore is being knocked into a cocked-hat by
the high freight rates demanded by bottoms not
under time charters. Grain and ore men have
captured most of the unattached boats reporting
here by the offer of freight rates that are out of
reach of most of the would-be coal exporters at
this port. The result has been that there has
lieen a drop from the weekly foreign movement
of between 50,000 to 80,000 tons as noted in the
recent summer months to totals of between 17,000
and 30,000 tons for a six-day working period at
the piers. The past week saw a movement of
16,925 tons for foreign ports, the lowest total
loading for many weeks past.
The October movement, too, showed a falling
off as compared with recent months, and the pre¬
diction is made that November will be consider¬
ably off those figures. Italy again took the
largest amount. The consignments by foundries
for the month were:
Sweden . 3-2,239
Kgypt . 7,03.5
Dutch Guiana . 849
.ygentina . 8,10,5
French West Indies . 3,247
Spain . 3,107
Italy . .58,622
Cuba . 26,648
Total . 139,652
Interesting a much wider field than exporters,
however, came a break for a time at least in the
wretched car situation. Rolling stock was in bet¬
ter supply nearly all week, and while some did
not get all the cars desired, most of the producing
interests were enabled to catch up on business
that had fallen far behind because coal could not
he moved as ordered and mined.
While there was a somewhat better supply-
noted of fuel for the open market, there was no
flood of coal in this direction, and the price list
remained firm. Contracts existing and general
business demands now make it sure that but little
extra coal will be offered during the winter
months. Rates to the trade are aliout as fol¬
lows :
F. 0. B.
F. 0. B.
Fairmont —
Mines.
Baltimore.
Three-quarter .
Run or mine .
$2.48@2.53
. .95
2.38
Slack .
. 1.00
2.43
Somerset —
Best .
. 1.45
2.63
Good .
. 1.25
2.43
W. M. R. R.^
Freeport .
. 1 10
2.28
P. R. R.—
Best South Fork .
. 1.40
2.58
Miller vein .
. 1.30
2.4S
Ordinary .
. 1. 10
2.28
The coke market is possibly a little easier.
Rest Connellsville cokes were offering around
$2.50, while best West Virginia products brought
about .$2.35 generally. Forty-eight hour Con-
nellsvile was offered at $1.95 and West Virginia
at $1.80.
Anthracite men report that they are busy.
Smaller sizes are in specialy good demand, pea
coal being a feature of the market. It was the
heavy call for this fuel that forced its price up
a year or so ago.
Bunker business is very good here just now.
The foreign fleet moving from Baltimore is the
largest in a long time. .A total of 104 large
foreign steamers reported here for loading in
October. The number of vessels under Amer¬
ican registry has also increased greatly in the
tramp trade, and about forty of these loaded here
for foreign ports in October.
Denver Trade.
Denver, November 11. — (Special Correspond¬
ence.) — Dullness has ruled this market for the
past ten days, owing to the extremely warm
weather. The past few nights have been close
to the freezing point, however, and this change
has materially aided local retailers this week.
The storing of coal for domestic purposes still
continues, although not to as large an extent
as two or three weeks ago. Jobbers generally
report that there is a better country demand.
Production has not materially decreased from
last week. Lignite mines are very busy on the
sugar factory demand and tail-end threshing re¬
quirements. The lignite output -will run almost
eight-five per cent of capacity tonnage for the
week.
Trinidad and Walsenburg tonnage is very sat¬
isfactory, and Canon City is steadily increasing
its output. Trinidad will lead the state in pro¬
duction for the week, wjth Routt county a close
second. The demand is better for the latter
product than at any time since the opening of
the present season. Anthracite producers are
swarnped with orders based on anticipated future
requirements, following the prediction of a hard
winter later on.
There is no change in the slack situation, and
the supply and demand for all grades seems
very evenly balanced. Prices are unchanged.
The following prices are ruling, f. o. b. mines,
for lignite: For Denver delivery, lump, $2.35 to
$2.65; mine run, $1.50 to $1.65; slack, $1.05 to
$1.25. Points outside of Denver, lump, $2.50;
mine run, $1.55 to $1.65; slack, $1.05.
Omaha Trade.
Omah,\, Neb., November 11. — (Special Corre¬
spondence.) — 'General conditions in this territory^
have been anything but favorable to the coal in¬
dustry. Continued warm weather after a record
breaking October has almost completely stopped
the retail stocks moving, upsetting the calcula¬
tions of the retail dealers, making it impossible
for them in a great many instances to handle coal
which they had ordered to finish stocks, result¬
ing in considerable coal being refused, and as a
result, transit shipments offered at very low
prices.
The steam market is especially weak, Kansas
screenings finding very few buyers at $1.25.
General business conditions are good and the
continued warm weather has helped the corn out
in .some localities.
The market prices on
standard lines
of coal
are as follows :
F. 0. B.
F. 0. B.
Southern Kansas —
IMines.
Omaha.
-\ut .
$3.30
Slack .
1.25
2.70
Franklin County —
TAimp .
4.10@4.25
i-gg .
4.10@4.25
Nut .
1.60@1.75
4.10@4.25
Williamson County —
Lumjj .
S.95@4.10
. . . 1 45@1 60
3.05@4.10
Rock Springs —
l-unip .
2.50
6.25
Nut .
1.75
5.50
Arkansas Anthracite —
Lump .
3.85
6.or>
Broke."*, sizes .
4.10
7.10
Colorado — Routt County,
al-
senburg and C'anon City —
Lump .
3.00
6.75
Nut .
0 05
6.00
Pea .
5.00
South'west Trade.
Oklahoma City, Okla., November 11. — (Spe¬
cial Correspondence.) — .As has been said in this
column Oklahoma is industrially and domes¬
tically in the clutches of oil and gas, so far as
the coal industry is concerned. Because this is
true, the following editorial, taken from the
Oklahoma City Times, is full of hope for the
"watching and waiting” coal men of the state :
“A year ago the oil industry was prostrated.
Cushing was producing in the neighborhood of
:!()(), 000 barrels of refinable oil a day, and every
available market was glutted.
“.At the close of last week the daily production
of Cushing was down to 118,000 barrels, while
the total production of the Kansas, Texas, Okla¬
homa and Louisiana fields, refinable oil, was 363,-
500 barrels. In a very short time now the avail¬
able locations in the Cushing pool will have been
drilled up. When that time comes and there will
be no more new wells to hold up the daily aver¬
age, the slump will be even more marked. A
year from today it is entirely likely that the Cush¬
ing production will be around 50,000 barrels at
the most.
“Thus within three years from the day of its
discovery the greatest oil pool ever known will
have come and gone. That is the history of oil
fields. . . .
“There is an apparent shortage of oil just now.
The world requirements are vast, and from
whence they are to be supplied seems to be a
serious question. A^alues are appreciating.”
Practically all the industries of the state today
are using oil or gas for fuel. .Almost every city
of any size is supplied with natural gas. Thus,
it would seem, if the above prediction is true, that
the coal industry in Oklahoma may again come
into its own.
1
rHE Black Diamond
Vol. 55. No. 21
uMB^s NOVEMBER 20, 1915 S^^sburgh $3.00 Per Year
Why Miners Will Attack Anthracite Companies.
Through the coal trade the belief is grow¬
ing rapidly that the anthracite field is to be the
center of a great labor struggle next spring.
Among the long-headed coal men there are in¬
dications of general alarm touching the coal
supply for this winter and next year. This is
not yet felt by the general run of coal men.
Certainly the people themselves have taken no
notice of the situation. Not even in the east
are the ultimate consumers storing any coal to
tide them over the period of labor trouble and
car shortage.
The labor situation, generally and specifically
as to the east, seems to be about as follows.
The international union is in debt to the various
locals to the extent of about $1,000,000. It has
no funds for a big fight unless it can borrow
from the local unions.
The state union in Pennsylvania should be in
pretty fair financial condition because its mem¬
bers have had work a good part of the time
for nearly eighteen months. Still, it has been
extravagant and has loaned money to the inter¬
national. It is not financially robust.
Ohio, of course, has no money left. It is
as badly off as is the international. It can’t lend
and may have to continue to borrow.
Indiana and Illinois miners have been working
only half time for the last year and besides the
union has been lending money to the international.
The position of these states is only fair. Mich¬
igan is a matter of small consequence.
The southwest has been working right steadily
and the payments by miners into the union have
been fabulous. Still, the state officers have spent
money lavishly. Also, they have loaned ex¬
tensively to the international union, particularly
to fight the war in Colorado.
Thus, taking the situation broadly, the union
is not in a good position financially. It certainly
is in no position to undertake any such a national
fight as would be indicated by insisting upon de¬
mands in all places where contracts expire next
.\pril. At the same time, some demands must
be made and sustained by a fight. The question
is ; “Just where is it most important to fight
and just where have concessions so far been
least important?”
Ohio surely has paid all that it can. The union
knows that it has gained so much in that state
the operators cannot pay unless the railroads are
first robbed. So, the Ohio miners have started on
a campaign to pillage the railroads to make good
their demands upon the operators. Thus, it need
not be expected that Ohio will be the center of
any strong demands from the miners.
No Confiscation Yet.
Illinois, likewise, has been bled until no more
blood is left. The next demand of the miners’
union will be one of the semi-final steps toward
the confiscation of the mines. The union, while
anticipating such a movement finally, is not yet
ready for such a bold move. It has not the
finances to support its proposal to seize. So, Illi¬
nois need not be expected to be the center of
any great labor war. About the only thing that
Illinois will be asked to do is to rearrange the
matter of field differentials. This need not be
serious if the operators there can hold together.
Indiana may be asked to come up to Ohio’s
standard on the mine run question. But whether
the miners will make a stand on that point de¬
pends upon how badly the union thinks it needs
Indiana as a revenue producer. The probabilities
are that Indiana will not be disturbed, since the
miners need money more than they need Indiana
in the list of “mine-run” states.
Iowa and the southwest always trail Illinois,
so they need not be expected to have any serious
demands made upon them.
When we get into the eastern states the situa¬
tion begins to change very rapidly. The east
promises to be the seat of war. As one man
expressed it :
“It is a presidential year next year. At such
times no labor disturbances are wanted. How¬
ever, Pennsylvania is so solidly republican under
They Want to Command the Anthracite
Field and Think the Death of Mr. Baer
Gives Them a Chance — A Disturbing Out¬
look.
all circumstances that an outburst of the union,
especially under a democratic administration,
might not be displeasing. So, the republicans
will not do what they did to save McKinley —
intercede for peace through the party bosses and
the labor leaders.”
Pennsylvania’s Position.
There is reason to doubt that the union demand
will be made upon the whole state of Pennsyl¬
vania this year. Of course the union wants west¬
ern Pennsylvania on the mine run basis. It
wants to level conditions there up with those in
Ohio. Still, the time is hardly right for such
action. That is, the miners have appealed to the
operators on this mine run question as long as
they propose. They do not want another such
a rebuff as they have gotten every time the
question was raised. Therefore, they are going
to take the simpler route and try through the
legislature.
Also, they have other things they want to ask
from the general assembly. The thing nearest
their hearts is a complete divorcement of coal
mining from railroad and other large control.
They have in mind a large campaign along that
line.
The legislature of Pennsylvania, however, does
not assemble until the fall of 1916. The miners
cannot hope to have their big legislative pro¬
gram adopted in time to influence the wage agree¬
ment of next April. On that account, the writer
rather expects that the demands on the western
part of Pennsylvania will be nominal, with ne¬
gotiations rushing to a quick and rather easy
compromise, because the union will need the
revenue from the working miners.
Trouble begins to appear when one gets into
the central field. That district of Pennsylvania
has never been brought fully under union domina¬
tion. There is one whole district in which the
union has no foothold. There is another district
where the operators still dare to assert their
independence. It will be remembered that at
one time the operators, even in the organized
field, put it squarely up to the union leaders to
discipline their men or the association would dis¬
solve and with it would end the labor agreement.
This was a species of rebellion which the union
officials cannot broach. They want these oper¬
ators to understand once and for all who is
boss in the coal fields. They want to bring these
operators to the same degree of subjection as
the operators in Ohio and Illinois have admitted.
First to bring the union operators under their
control and second to unionize the entire field,
the writer believes the central portion of Pennsyl¬
vania is in for a hard fight.
The Real Eastern Struggle.
These things, however, are merely preliminaries
to the big fight. They are mere outpost skir¬
mishes when compared with the battle which is
being planned for the anthracite field. There the
situation is so intense it is gripping. The anthra¬
cite operators have alway*' shown a stiff back¬
bone when it came to a question of recognizing
the union. That, howewr, was when George H.
Baer was alive. New .Mr. Baer is dead. The
miners know it. The djierators are keenly appre¬
ciative of the fact Vou cannot talk to a man
cast of the Alleglunies without knowing what a
hole was left in the anthracite organization by
the death ui this masterful leader.
The n'.mers say that they are going to fill this
gap b'v inserting their own organization. They
say that what Baer was to the anthracite field,
the> propose to be. They say that for the master¬
ful Baer they are going to insert John P. White.
They propose, without saying it just that way,
to put a mouse in the chair of the dead lion.
What they really want to do is to seize upon
this opportunity, before the operators’ lines are
reformed, to break down the old resistance of
the entire anthracite field to the miners’ union.
So long as Baer lived, they knew they could
not do it. With Baer gone, they think they have
a chance now if ever they had one. Some few
of the operators — but not many — think the reason¬
ing of the miners is pretty sound. They think
there is real danger of union success. That is
why the long-headed operators are expecting a
serious fight there next April.
To get this thing exactly straight, and perhaps
to prove that the union is mistaken, we have to
go back three years to get the operators’ point of
view on the miners and to understand the whole
plan of campaign. The operators made two con¬
cessions at that time which for a while they did
not understand. The first one of them was the
abolition of the old percentage contracts. The
miners, theretofore had been paid a percentage of
the price at tidewater of anthracite. They wanted
to be paid on a mine basis alone. The curious
part of it was that in having this demand allowed,
the miners actually gave up about a cent and a
half a ton which they might have had. It didn’t
seem reasonable they would thus give away
money.
The Goal of the Miners.
Then the truth of it all came out. The miners
were not fighting for money. They were fighting
for the mastery of the anthracite field. They
wanted the operators to acknowledge them as
the leaders of the field. This was one of the first
of many steps they were intending to take to have
their position fully recognized. Their assump¬
tions are colossal and mount to an aspiration
finally to confiscate that field. This was one of
the first steps in their program. What, to them,
was a matter of a cent and a half a ton in wages
when they gained the first fight for the final mas¬
tery of the field?
The second concession won by the miners was a
piece of the same program. They wanted and
got partial recognition of the union. The pur¬
pose of this half-loaf demand did not come out
at first, but it did after the contract had been
signed. Then the men in the union began to wear
buttons signifying their affiliation. Those who
did not wear buttons were automatically desig¬
nated as “scabs.” The accusation was not merely
implied. It was pressed home on the other fel¬
lows in ways which only the union advocate
knows about. The men were ostracized. The
other fellows refused to work with them. Or, if
they did work, the other fellow got the worst of
it and was subjected to most of the danger.
However, such piecemeal recognition carried its
own handicaps. Without full recognition— mean¬
ing the establishment of the check-off — it was im¬
possible for the union to enforce the collection of
its dues and therefore keep its men up to good
standing and the union recruited to full strength.
.So, the union had to work its ingenuity. To do
that, it started a system of colored buttons. Each
month the color of the button was changed. As
a man paid his dues, the old button was taken up
and a new one was issued. By this change of
color, the men who had paid could spot at once
those who had not paid. It was like changing the
pass word at the lodge. Thus those who had paid
refused to work with tho.se who had not. It
was a forceful way of collecting union dues, but
the union was desperate. How much simpler it
could all have been if the coal company had
automatically subtracted the union dues from the
pay envelope. But the operators refused to play
treasurer to the union and there you are.
These button strikes rose in number rapidly.
.'Vccording to last report, if information is re¬
liable, there have been 22.5 of these strikes in the
anthracite field during the life of the contract
about to expire.
These incidents have warned the anthracite
(Concluded on page -112.)
406
THE BLACK DIAMOND
[November 20
Getting Rid of Pilots and Cutting Shipping Costs.
'I'he entire east has heconie almost obsessed on
the suljject of exports. When a western man
goes east, the first (piestion his friends ask him
is:
"l)own here on war orders?”
I'iveryone wants to get to those who are placing
war orders and are trying all sorts of schemes
and devices to reach their goal. Those who must
do the buying are so l)urdened with good and
had offerings they have no time to sift them into
what they arc. Consequently buyers are bar¬
ricaded behind red tape and a system of inter¬
mediaries by whom the offerings get their pre¬
liminary sifting.
Thus the war order is the thing of the minute
east of the Alleghenies and it dominates nearly
everything. It is even getting into the financial
center. It is dictating today the fight for con¬
trol of the larger steel companies. And one
with a practiced eye can see that the size of the
financing means that even the financiers are stock¬
ing and lionding the new companies on the belief
that this rush of orders will never abate. Steel
companies which a short time ago were incon¬
spicuous factors in the business are now being
financed for fabulous sums. There may come a
daj’ of reckoning. The writer of this article
hopes that it will not, but it seems inevitable.
And this same spirit of recklessness is getting
into the coal trade. Coal men have the same fever
of anxiety to sell abroad, but they are sobered —
thank God — by the temporary shortage of ships.
They cannot get their boats to carry all they
would like to sell and which, no doubt, they
could sell. Still, if they sold it all they would
get an inflated notion of what is likely to happen
after the war is over. So, the temporary short¬
age of ships is a mighty good thing, if you look
at in the light of possible futures.
The plain matter of fact is that America is
not ready for any such an exi)ansion of her for¬
eign luisiness as is likely at the minute. The
-American coal trade is not ])repared to do the
business that is being offered. We have toyed
with this situation for fifteen months or more
and yet we are no nearer a solution of the real
|)roblem than we were then. \\’e have made a
start at getting finances arranged and we have
made a start at studying credits abroad. But
on two essentials we have done nothing.
The first of these is the matter of getting
ships. Of that more will be said at another time.
Suffice it to say now that we have done nothing.
The second is the matter of getting those ships
into and out (if port without paying extortionate
tribute to the coast pilots. By this is meant pay¬
ing a tribute which is larger than the profit of the
coal company on the cargo and larger than the
profit of the ship owner on the entire voyage.
-America must get rid of the present pilotage
system or the merchant marine propaganda is a
dream. It must change the pilot system, or the
-American coal operator, already burdened by
differentials against him, cannot compete with
his foreign adversary.
This pilot system, which is under state con¬
trol, is interfering with a national program. There
is raised again the old question of state’s rights
as opposed to the national good. The best good
of the nation suggests that the charges for pilot¬
ing ships shall be sucb as will allow them to get
into and out of any port cheaply to take on coal.
State’s rights suggest that the state shall have
an unrestrained right to regulate fees so that
some of its politicians may make a tremendous
stake by steering shii).s into and out of ports.
This question must be simplified before it is
going to be i)ossible for our foreign commerce
to make any progress.
In this connection there is reproduced here¬
with parts of an address delivered recently by
John W. Oast, Jr., an attorney of Norfolk, A'^a.,
before the W’aterways .Association at Savannah,
( ia. He said :
Canal Tolls an Embargo.
"The Beaufort cut made it possible for barges
to go inland behind Cape llatteras and thus avoid
the long and dangerous outside run from Cape
Henry to Cape Lookcnit. But barges have not
been able to use this route profitably because of
the canal tolls, and the small cargoes to which
they are limited bj' tbe shallow depth of eight
feet in the Albemarle and Chesapeake canal, and
of nine feet in the Di-smal Swamp canal. When,
however, the labors of this association brought
about the purchase of the Albemarle and Chesa¬
peake canal by the government, the Southern
Transportation Company, anticipating the twelve-
Northern Ports Have Simplified Matters
Greatly, But the South Still Has a Cum¬
bersome System — Effect on Barge Traffic.
foot depth that the government proposes to give
this route, began operating a few of its barges
to the south Atlantic ports of Wilmington, Savan¬
nah and Charleston.
“Upon the development of this barge traffic
depends the full usefulness of the projects which
this association is advocating. These barges are
about .'iOO feet long, twenty-four feet wide, have
from twelve to sixteen-foot sides and no motive
power of their own. They can carry about 500,-
000 feet of lumber on a nine-foot draft, but con¬
siderably more when fully loaded to ten or eleven-
foot draft. They are the cheapest vehicles for
bulk and heavy traffic because they cost less to
build than sailing vessels : carry more tonnage on
less draft than sailing vessels; carry a crew of
two men as against eight or nine men for the
sailing vessels; can conservatively operate in the
inland waterways without insurance; can approx¬
imate a certainty of schedule as against the un¬
certainty of sailing vessels, and give better dis¬
patch in loading and unloading.
Unnecessary Charges.
“You are, therefore, interested in the unneces¬
sary charges which the pilotage and harbor laws
of North Carolina, South Carolina and Georgia
impose upon the barges using the inland water¬
ways. I say unnecessary, because they were abol¬
ished at Norfolk in isios and 1910, and before
that at all ports north of Norfolk.
“South of Norfolk compulsory pilotage exists
against all coastwise vessels, including barges.
The only exception of importance is that of steam
vessels when navigated by officers holding United
States government pilot licenses for the waters
traversed. This exception of steam vessels is
due to Section 4444 United States revised stat¬
utes ; yet barges in tow of such steam vessels
have to pay pilotage. Pilots are useless to barges
l>ecause they must follow the tug. Their services
are not needed, and when offered are not ac¬
cepted ; yet when they offer their services the
barges have to pay. The substance of a pilot’s
services to a barge in tow of a tug navigated
by a government pilot is to chat socially with
the master of the tug, while the tug master makes
his own course, which the barges following astern
on their hawsers must hold. Pilots cannot charge
the tug, yet the barge in its tow, a vessel duly
certificated by the government to run coastwise,
is compelled to pay an arbitrary charge for a
service that is neither needed nor rendered.
“The reason for this is that barges came into
existence long after the south Atlantic pilotage
laws, now in force, were enacted, and the general
phraseology of ‘all vessels,’ ‘every vessel’ and like
expressions used in the pilotage laws, have been
construed by the courts to include barges. The
barge owners long contended that as their barges
were wholly dependent upon the tugs towing them,
the tugs and barges were, in contemplation of
law, one vessel, and the e.xemption of the tug
from pilotage included the barges in its tow.
This contention was sustained by United States
District Judge Purnell, in the case of ‘The
Carrie L. Tyler,’ reported in 103 Federal, but,
unfortunately, he was reversed and barges are
still a happy sight to south -Atlantic pilots.
“It would seem that the pilots would be satis¬
fied with these conditions. But not so with the
pilots of Beaufort, North Carolina. -At that port
they never had the energy to offer services out¬
side the bar ; but, when they became aware that
the Beaufort cut was to used they proceeded,
without notice to the barge owners, to have en¬
acted an amendment to the law, whereby they
imposed a toll of about $45.00 per round trip on
each loaded barge passing through the inland
waterway. Section 4i)()9 of the North Carolina
code provided that i)ilotage be ‘collectible in
Beaufort harbor from Aliddle Alarsh to Lewis
Thoroughfare.’ Last March they had it amended
to read ‘collectible in Beaufort from Middle
Marsh to Lewis Thoroughfare, and from the
Neuse river side of the inland waterway, through
the said waterway and out of Beaufort inlet.’
The Charges Measured.
"This amendment became effective -April 1, 1915,
and tbe first barges to pass through the inland
waterway, after that date, were hailed by a pilot
standing on the bank at the Neuse river and
at Beaufort Cut, and each barge then billed for
$2.50 per foot of their nine-foot draft — a one¬
way toll of $22.50 for each barge. This enter¬
prise would be amusing were it not so serious.
Instead of encouraging coastwise traffic they dis¬
courage it. Fortunately, the commissioners of
navigation at Beaufort are reasonable men, and
in order to relieve the situation they have, for
the usual fee, issued barge branches or licenses,
whereby the masters of the various barges are
authorized to act as pilots at Beaufort, of the
barges under their command, while same are in
tow of a tug. Under this arrangement and by
an adjustment of the pilotage fees, which this
barge branch legally entitles the masters of the
barges to collect, Beaufort Cut, while still not
a free waterway, is not as expensive as it might
be. Were it not for this sensible arrangement,
made by the commissioners of navigation at Beau¬
fort, there would be no south Atlantic barge
traffic, as otherwise the present pioneers in this
barge traffic, already laboring under the hindrances
of canal tolls and the small cargoes forced by
a limited draft, would have given up the trade in
disgust.
“The most direct relief from this pilotage would
be to amend Section 4444 of the United States
Revised Statutes. This section now provides that
there shall be no compulsory pilotage against
steam vessels navigated by government pilots.
-As amended it would exempt from such pilotage
barges while in tow of such steam vessels. Con¬
gress should certainly be willing to do this in
order that the country shall receive the full bene¬
fit of the inland waterways this association has
and is urging upon it.
“Harbor masters’ fees do not run into as large
money as pilotage. They are, however, a heavy
drain upon a traffic which works in a small mar¬
gin of profit. Norfolk abolished all harbor mas¬
ter fees in 1910, and Baltimore, Philadelphia, New
A'ork and Boston abolished them long before
that. Harbor masters are merely harbor police.
Cities support their police forces, why should
they not support their harbor masters? Norfolk
has three harbor masters, which cost about $6,500
a year. The northern ports have officials, with
other titles, at larger salaries who perform the
same duty. The aggravating circumstance about
these harbor master fees in the south Atlantic
is that they did not exist, as against barges, until
the inland barges appeared, and then, when the
barges objected to being billed at schooner rates,
they created a barge rate.”
Hard Coal Factories.
With the acceleration in the production of an¬
thracite due to the fall demand comes the time-
honored request from some retailer unfamiliar
with the details of anthracite mining to “open
another chestnut chamber.” The anthracite oper¬
ators devoutly wish that it were as simple as
that, and patiently write to their correspondent
that anthracite as it appears at the mouth of the
shaft is not fuel at all, but a mixture of coal with
slate and “bone” and dirt, commonly known as
refuse, and that it has to be cleaned and sorted.
-All of which goes to show that the knowledge
is not yet common that the anthracite coal indus¬
try is a manufacturing as well as a mining enter¬
prise, and that twenty per cent of the cost of pro¬
duction comes in putting the coal through the
huge breakers erected for that purpose. The coal
bill alone for the steam plants of these factories
amounts to millions of dollars a year, as it is now
necessary to burn over ten per cent of the entire
output in order to operate them.
The function of these breakers is to eliminate
the refuse and break and sort the coal into the
required sizes. The sizing of coal requires a
breaking down of the large lumps by means of
rolls, which are equipped with teeth so arranged
as to crush the coal with the production of the
least amount of the small and unprofitable sizes.
The refuse must be eliminated by the big shak¬
ers and by hand on the picking tables. After
that the coal must pass for further refinement
over screens, down spiral separators and through
a water jig before it is ready for loading.
The Lehigh A^alley Coal Sales Company is
completing a new trestle at Brighton, a suburb of
Rochester, N. V. It is reported by those who
have seen it to be "a thing of beauty” and to
adorn rather than detract from the generally at¬
tractive appearance of a residence neighborhood.
Besides this, the new trestle will be finely
equipped for handling coal with dispatch.
407
No. 21 j _ _ TILE BLACK l)IA3IOND.
Danger Ahead in Eastern Rail Situation.
Despite the assurances which have been given
by railroad officers that eastern lines are still able
to handle their traffic, more and more anxiety is
being felt in railroad quarters over the export
freight situation, especially at the port of New
Y ork.
An executive officer of an important railroad
estimates that between Sfl.OOO and 35,000 carloads
of export freight are awaiting delivery at or near
New York, or held up en route to this city. He
adds that cars have actually been unloaded at
points along the New York lines, because of the
inability to get these cars through to New Ydrk
and unloaded here. Such unloading had become
necessary to release the cars for other shipments,
and to get them out of the way of moving traffic.
"I do not wish to be considered an alarmist,”
this officer added, “because there is as yet no oc¬
casion for alarm. The question is simply whether
the situation will not become worse, if effective
measures are not adopted against it. In the
absence of other relief, it may become necessary
for the railroads to adopt such measures as are
open to them to prevent the blockading of their
lines — in other words, to declare an embargo
upon export business until the tonnage already
on hand here has been cleared.
“It occurs to me that if the right sort of co¬
operation among shippers could be secured, the
obstruction of the railroad lines and terminal
facilities might be avoided. As it is, we are al¬
most face to face with a situation in which freight
which the purchasers may not need for months,
which may in fact not be loaded on shipboard
until spring, prevents the prompt movement of
goods needed for immediate use. It looks now
as though that condition were very likely to arise
in the near future.
"The railroads have no option in this matter.
As common carriers, they are not allowed by law
to discriminate among shippers, but must accept
freight as it is offered. The only suggestion that
Of the millions who rely year after year on
anthracite coal to keep their homes warm and
cheer}’, few — if “few” means darned few —
know anything about the region from which
came their supply. Hewer of wood and
drawer of water that man in his original state
was, he knew where it was easiest to get his
supply. Then, when he passed the buck to
some one else to provide him these things,
he quickly forgot and did not care to be re¬
minded of what he would have to do if he
were to return to the primitive.
So, what was once the simple proposition of
getting the firewood from the tree has come
to the laborious and highly scientific method
of digging it from the ground. Volumes have
been written of the means and methods em¬
ployed. Who has tried to “high light” a
visit to the hard coal district? To reduce
this last sentence to the understanding of those
not familiar with newspaper slang, who has
made a trip over the hard coal regions and
told of the out of the ordinary things that
conditions and mining have created?
It may surprise some laymen to know that
every piece of coal that is turned out of the
anthracite breakers is truly “hand picked.”
That is, to say, after all of the mechanical
processes have been exhausted to remove all
the bone, slate and refuse from the hard coal,
every lump from pea to the biggest size, is
given personal inspection that the buyer may
get nothing but the coal for which he has
paid.
To stand behind a breaker boy or a man
that has gone over the coal and see the un¬
canny sixth sense with which they take away
the pieces of refuse is a revelation in itself.
Fig'ures are of interest to some folk. Here
is a jolt for a few of the gentlemen who
think that the coal operator is getting more
than a return on the money that has been
invested. It is estimated that .$250,000,000 is
invested in the mining machines and breakers
in the anthracite regions. To erect a breaker,
sink a shaft and equip all adjuncts to produce
coal from one mine means an outlay of
about a million dollars. Approximately there
are 180,000 men and boys employed about the
hard coal operations, and of these about one-
third are actually employed in digging the
coal and the other two-thirds work above
ground.
offers itself is that those who are in charge of
the purchase of supplies for Europe extend their
supervision over the transportation of these
goods; in other words, that they direct shippers
specifically when to ship, holding back the things
not urgently required in favor of those that must
be forwarded at once.
"Such a step, if practicable, would be more in
the interests of the manufacturers in this country
and of the purchasers abroad than the railroads,
though its results would be beneficial to all con¬
cerned. The authorities in charge of purchases
for the belligerent nations have or can get fairly
exact data as to future sailings of vessels, and
could obtain the required information as to the
order in which the various purchases were de¬
sired to come forward.
“Whether such a centralized control could be
established over a large enough proportion of the
export trade to relieve the situation may be an
open question. But I think a good deal could
be done in this way, and even a little relief is
worth having for the sake of preventing worse
conditions later on. It would be a serious inter¬
ference with the country’s export trade if the
accumulation of all sorts of export freight in and
around New York should prevent the forwarding
of commodities that must be shipped promptly to
be sold at all. A good many shippers might thus
find themselves deprived of their market.”
It has been calculated that some of the rail¬
roads entering New York have on hand an accu¬
mulation of freight which, at the present rate of
loading on board ship, cannot be cleared off in
less than two months. There has been some dis¬
cussion of the possibility that the British ad¬
miralty or the Board of Trade may find the means
of increasing the number of vessel sailings from
this port, but railroad men assume that such au¬
thorities are already doing everything in their
power toward that desirable end. — Wall Street
Journal.
Speaking of cost, those* who wonder at the
price of hard coal have to keep in mind there
is the tremendous cost of pumpage. In many
places eleven tons of water have to be lifted
from a mine in order to recover one ton of
coal. At Keyser, a D. L. & W. operation
outside of Scranton, an electric power hoist
is used to lift a bucket carrying 3,100 gallons
of water at the rate of a bucket a minute.
This is an ocular demonstration, but in all
mines there are big hydraulics that are sendin.g
forth from the mines enough water to make
some river courses look a barnyard creek.
Again, miners must have fresh air. It has
been said that it takes an equivalent in horse
power to send in fresh air in the mines as it
does to take the coal out.
A general average sItows that the cost of
hard coal at the mouth of the mines is about
$2.75 a ton. The profits are on the large
sizes. So when the smaller sizes have to
lie taken to market the general profits have
been cut down. The Lehigh Coal & Naviga¬
tion Company has a new way of getting these
to the consumer and making a profit on
them. At Hansford and Plauto immense elec¬
tric plants have been erected and the buck¬
wheat and smaller sizes have been turned into
“juice.” This is marketed as far south as
Bethlehem and the company can deliver elec¬
tricity as far south as Philadelphia at a profit.
Styles in mining change just as much as
milady’s. Strippings have become immensely
popular in the regions. Little Panama at
Ebervale is about the most extensive and the
coal recovered from this mine which had lieen
aliandoned as “worked out” has proved amazing.
It is possible, mining men say. to get out coal
from these old workin.gs at one for ten. In other
words, an overload of ten tons of rock and slate
can lie taken out to recover one ton of coal at a
profit.
No reason exists why a colliery should not
lie made just as agreeable to work about as
a factory that cost a great deal less. Such
was the axiom of the Lehigh Valley Company,
when it started its experiment at the Mineral
Point Colliery. Here acres of grass have
been plotted, barbered and landscaped. White¬
washed stones mark the walks, and the out
buildings are all well painted and kept painted.
They do say that the miners thereabout like
the change so well that some of them come
on Sundays to use the hose on the grass to
keep it fresh and green.
The burning mine — who has not read in the
coal magazines of this and wonders if it really
existed. It does. It is at Summit Hill, and
is one of the tradegies of the regions. The
story goes that this was started in 1856 by a
careless miner, who left his lighted lamp
against an old prop and the fire that could have
been put out with a bucket of water is burn¬
ing still.
Twenty years ago the fire had wormed its
way through the mine so as to endanger
other property of the Lehigh Coal & Naviga¬
tion Company. An immense hole in the
earth was blasted,' but the fire beat the workers
and this had to be abandoned. A couple of
years ago, a barrier was erected in a trench
700 feet long, 200 feet deep and twelve feet
wide. In this was placed fire clay cement
and earth, with the hope that it would cut
off the fire. To make doubly sure the com¬
pany started a stripping operation beyond,
and are now removing the coal adjacent as
fast as possible.
“Mary take the tomato plants out of the
bath tub, its time to put the coa! in” may
be a quip for the tenement dwellers of the
large cities, but it does not apply in
the hard coal territory. In the “City of Con¬
crete,” which the D. L. & W. people have
erected back of Nanticoke all of the con¬
veniences that modern folk enjoy are to be
found in the homes there, and there may
be a few of the miner’s families where they
do not understand sanitary laws — but they
are few. And where it is found that they
are abusing modern health laws, they soon are
corrected. Victrolas, autos and the niceties of
life are not the exception in this place; you
arc behind the times if you do not have them.
Effect of Proposed Increase.
The granting of the demand of the anthracite
miners for a twenty percent increase in wages,
formulated at their recent convention, would add
41.5 cents to the per ton cost of the domestic
sizes.
It is not possible, of course, to predict to what
extent the retailers might advance their prices,
but it is possible to make approximate estimates
as to the effect of the granting of this demand
upon the cost of the product as delivered to the
railroad for shipment.
-According to the United States Census Report
for 1909 the average wage expense for mined
coal was $1.34 per ton, and for washery coal
nineteen cents per ton. .\s the washery product
at the present time, however, is less than three
percent of the total output it might well be ex¬
cluded from the discussion. In 1909 five and one-
half per cent of the total output was from the
washeries. Including washery coal the labor
cost was $1.30 per ton.
By the wage agreement of 1912 the wage earn¬
ers in the anthracite region were granted an ad¬
vance of ten per cent over the rates in effect
since the great strike of 1902, but the sliding
scale established by the anthracite strike commis¬
sion, from which the miners had obtained a ben¬
efit of about four and one-half per cent during
the ten years of its operation, was abolished.
The net gain in wages by the advance in 1912
was therefore only five and one-half per cent.
This would make the labor cost of anthracite
at the present time $1.37 per ton.
-An advance of twenty per cent would mean,
therefore, an increase of 27.4 cents per ton, which
on the production of 81,000,000 tons in 1914,
would amount to nearly $22,200,000. Of this to¬
tal production, however, approximately 8,500,000
tons were used in the operation of the mines,
and about 19,000,000 consisted of “buckwheat,”
“rice” and “barley,” the steam sizes that are sold
in competition with bituminous coal and on which
prices cannot be advanced. -All of the increased
cost must be made up from the prepared or do¬
mestic sizes, of which the production in 1913
amounted to approximately 53,500,(>00 tons.
-An increase of $22,200,000 on the payrolls
would, therefore, add 41.5 cents to the per ton
cost of the domestic sizes. The retailer who has
to pay 41.5 cents more for his coal would prob¬
ably feel justified in adding fifty cents to his
selling price. Are the consumers of anthracite
willing to pay the additional cost?
The Philadelphia & Reading Railway has placed
another order for steel coal cars, its latest order
being for 500. This is an addition to an order
for 1,000 steel cars made last month.
A Sketch Book on Anthracite Mining.
408
THE BLACK DIAMOND
[November 20
Cost and Revenue of Franklin
The writer recently accompanied a number
of coal dealers from the northwest on an in¬
spection trip to the Franklin county mines,
and was much interested in arguments made
by some of the retail coal men concerning the
cost of producing coal in Franklin county,
the percentage of lump, screenings, etc., and
the general attitude of the western dealers
toward the southern Illinois coal operator as
regards the alleged difference between the
total cost of the coal to the operator and the
price which he receives from the dealer or
retailer.
In traveling about one of the mines, the
dealers’ committee “discovered” that the loader
and machine runner* received fifty cents per
ton for their coal. To this was added a few
cents for haulage, hoisting, top labor, etc.,
and on totaling up the items, Mr. Dealer was
convinced, “and had it straight from the
miner, and right on the job,” that the total
cost of producing the coal, including every¬
thing, was something like seventy cents per
ton, and he was paying the exhorbitant rate
of $1.50 f. o. b. mines.
Flowever, it developed that this $1.50 was
for lump coal, and it then became necessary to
figure the percentage of screenings and decide
on their average revenue. After counting the
cars that had been loaded, and doing a vast
amount of figuring, it was demonstrated that
the screenings averaged about thirty per cent,
and it was agreed that the average revenue
from screenings was sixty cents. On this
basis the average revenue per ton to the opera¬
tor figured $1.23, so that the operator’s profit
was fifty-three cents per ton. Conceding the
three cents, Mr. Dealer had the operator mak¬
ing fifty cents per ton on a production of 3,000
to 4,000 tons a day, and insisted upon the
reduction of this ungodly profit by a conces¬
sion on the contract prices.
For the benefit of our misguided brethren
and others, who imagine they are paying too
much money for their coal when they contract
for coal at prices that will check fairly well
with the average prices as shown on the cir¬
culars for Franklin county for a year, the
writer has prepared the following data show¬
ing the percentage of sizes, and the operating
costs of Franklin county coal.
The data was prepared from records of sev¬
eral different mines, neither the best nor the
worst operations, but mines that will average
fairly well in the Franklin county field. The
figures are an average over a period of six
months, during which time conditions were
fairly noriTml. and although the various mines
will show slight variations from these fig¬
ures, the data is within reasonable bounds of
an average of the district:
Percentages of Standard Sises of Coal at a Franklin
County, III., Mine — Average of Si.r Months, Normal
Operating Conditions.
Lump — over 6-inch round perforations . 19.65
Egg — 6,\3-inch round perforations . 22.90
No. 1 nut — Sx2-inch round perforations . 9.77
No. 2 nut — 2x1 -inch round perforations . 10.45
No. 3 nut— 1 -inch round perforations . 9.01
No. 4 pea — 54xrV-inch round performations . 3.76
No, 5 duff — /sxO-inch round perforations . 19.28
2-inch screenings loaded direct from shaker screen 5.18
Total . 100.00%
■’McCormick building, Chicago.
By John A, Garcia, E. M.*
A Candid Statement as to What It Costs
to Produc.e This Coal Is Made by a Man
Who Has Paid the Bills — Data Taken
From Mining Company Books.
Percentage of Two-Inch Screenings to Total Tonnage.
Figures from above table.
Per cent.
No. 2 nut — 2xlk4-in . 10.4.5
No. 3 nut — 1 J4x-)4.-in. . . . 9.01
No. 4 pea — . 3.76
No. 5 duft — iffXO-in . 19.26
2-in. screenings loaded
direct . 5.18
47.68=:2-in. screenings percentage
Percentage of Sises in Two-Inch Screenings.
Figures from above table.
Per cent.
No. 2 nut — ’2xlj4'inch . 24.63
No. 3 nut — lj4xM-inch . 21.16
No. 4 pea — ^Xi^-inch . 8.82
No. 5 duff — -fffxO'inch . 45.39
100.00
It will be noticed from the above that the
mine produced 47.68 per cent of two-inch
screenings, which is quite different from the
thirty per cent as figured by our friend Mr.
Dealer.
The statement also shows that over forty-
five per cent of the coal in the two-inch screen¬
ings is duff or coal that will pass through a
seven-sixteenths-inch screen, and is not only
difficult to sell, but brings an extremely low
revenue.
In order to produce the above sizes it is
necessary to construct and operate a very ex¬
pensive sizing plant, but as the dealers’ calcu¬
lations were based on lump and screenings
we will use that basis for figuring the average
revenue, and will also assume that the dealers’
prices are a fair average, viz.: $1.50 lump and
sixty cents screenings:
47.68% screenings@C0 cents= . $0,286
52.32% lump@$i.50= . . . 785
Average revenue per ton mine run= . $1.07
This is not very far from the average reve¬
nue secured by the Franklin county mines,
but to lessen the argument on this point we
will concede the average revenue of $1.10 per
ton mine run, f. o. b. cars mines.
The cost of production is, of course, a very
variable item, each mine having special condi¬
tions that affect the cost, and each month or
year showing a different figure for every mine.
However, the writer, after studying the cost
sheets of a number of mines, has picked out
the following as a fail; average, and on an an¬
nual basis, with normal conditions, the data
will check well with the average Franklin
county mine. The statement also_ shows that
there are a number of items entering into the
cost of producing coal whereof our western
friends are unacquainted, but they are taken
direct from the cost sheets, and are actual
facts:
County Coal.
COST OF COAL PRODUCED AT A FRANKLIN
COUNTY MINE.
Inside Labor —
Including the following; Digging, yardage, timber¬
ing, track laying, driving, caging, trapping, road
men, bosses, haulage, inspection, electrician,
brattice men, pump men, shot firers, mine ex¬
aminers, handling supplies, salvage, pipe men,
machine boss, etc . $0.7026
Mine Supplies —
Including the following; Timber, powder, machin¬
ery parts, ties, tracking, etc . 0366
T op Labor —
Including the following; Firemen, engineers,
weighman, trimmers, teamsters, stable men,
bosses, smithing, machinist, check puller, han¬
dling material, electricians, miscellaneous, etc.. .0627
Top Supplies —
Including the following; Fuel, stable, oil, waste,
machinery parts, miscellaneous, etc . 0441
Overhead Local E.xpense —
Including the following; Superintendents, clerks,
office, liability insurance, engineering, miscel¬
laneous . 0369
Total operating cost per ton . $0.8829
To these should be added the following
costs which, of course, are subject to violent
fluctuations at the different mines, and the
figures give our estimates based on the cost
to a number of companies:
General Overhead —
Including the following; Royalty or exhaustion
Depreciation on equipment and development...
Additions and betterments .
Interest cn investment .
Selling cost . ; .
$0.03
.02
.01
.05
.06
Total . $0.17
Conceding that the first two items of the
above constitute a sinking fund, which is not
generally the case, the total cost of producing
coal at this mine is $1.05.
The above costs do not take into considera¬
tion the very important items of idle days,
strikes, explosions, fires, squeezes, etc., etc.,
all of which unfortunately are common enough
in the Franklin county field.
Leaving these considerations aside the above
statement of facts indicates that the dealer is
not paying enough for his coal, and as the
operating costs at the mines have been re¬
duced to about the lowest possible point, the
only salvation for the operator is to get more
money for his coal, and the writer trusts that
the above facts will tend toward that end.
Major T. H. Jackson, United States Army,
in charge of the Wheeling district, notified
river interests and rivermen that a temporary
cofferdam will be placed at Dam No. 12, War-
wood, W. Va., which will obstruct navigation
for a width of about fifty feet. It will be
placed at a point 368 feet from the river wall
of the lock. The navigable channels will be
open for a width of 350 feet adjacent to the
river wall and 300 feet in width adjacent to
the river.
Latest advices show that the total amount of
coal mined during the month of August at Port
Natal (Africa) was 201,184 net tons, as against
254,261 tons for the corresponding period of 1914,
showing a decrease of 53,677 tons. The amount
of coal bunkered at Port Natal for August was
83,676 tons, and that exported was 38,314 tons,
making a total of 121,900 tons bunkered and ex¬
ported, as compared with 133,154 tons for August,
1914.
Tipples Such as This Are Built at Franklin County Mines.
W -A v**
UP
^ f
Part of Rescreening Plant in Franklin County, Illinois.
No. 21]
THE BLACK DIAMOND
409
Government Aids American Coal Exporters.
By Herman G. Brock.
It is able and ready to serve his interests but
in order to make this service of nia-Kimum value,
it is essential that the bureau be closely in touch
with each individual member of the coal trade
who is interested in export possibilities.
Coal shippers who are interested in exporting
their product may well ask themselves at this
time whether they are taking full advantage of
the service rendered by the United States De¬
partment of Commerce through the Bureau of
Korign and Domestic Commerce. This is one
which an American business man is entitled to
receive, and it is a service which has already
demonstrated its value in many ways, particu¬
larly at this time when the competition from
Welsh and Australian coal is so greatly lessened.
The Bureau of Foreign and Domestic Com¬
merce is peculiarly prepared to assist coal ship¬
pers who wish to aggressively go after foreign
business.
In what way has the individual coal shipper
obtained real and concrete assistance through this
“business men’s bureau’’ of the Federal Govern¬
ment? A reference to a recent activity of the
bureau will clearly illustrate one occasion, at
least, when this organization rendered undeniable
service to the coal trade. For many years the
movement of American coals to Spain has vir-
tiually been negligible in quantity. The principal
reason for this has been the discrimination
against the United States product in the so-called
“Transport Tax” on coal; that is, a tax which
was levied on a vessel which brought a cargo
of coal to Spanish ports, but the rate on cargoes
from America was much higher than the rate
on cargoes from Wales, and this transport tax
made the delivery of our coal in Spain at a profit
practically prohibitive. In April, 1915, this tax
was completely removed by the Spanish Govern¬
ment largely as a result of a visit made to Madrid
by Dr. C. W. A. Veditz, commercial attache of
the Bureau of Foreign and Domestic Commerce,
with headquarters at Paris.
The news that the transport tax on coal had
been removed was immediately cabled to the
Bureau of Foreign and Domestic Commerce at
Washington by Commercial Attache Veditz. A
few days before this had occurred, the Spanish
State Railways had asked for bids for one million
tons of semi-bituminous coal and the bureau
had been advised of this fact but, owing to the
existence of the transport tax, tbere was very
little prospect of American coal being success¬
fully offered. With the removal of this tax,
however, there was created a splendid opportunity
for the sale Of American coals in Spain.
It was highly desirable that every American
coal shipper capable of submitting a bid in this
connection should be immediately advised of these
changed conditions in Spain. .4t once the entire
machinery of the Bureau of Foreign and Domes¬
tic Commerce was put in motion. On the after¬
noon of the same day that the cable from Madrid
was received telegrams were dispatched to such
coal shippers in Seattle, Washington, and various
points in the Allegheny coal region, as were
registered in the bureau’s index and therefore
known to be interested in the sale of semi-bitu¬
minous coal abroad. The wire conveyed the in¬
formation that the Spanish transport tax on coal
'was removed and explained that further details
of the Spanish State Railways would follow next
day by confidential letter.
The commercial agent in charge of the New
York office of the bureau was likewise given
this same information by telegraph, and in¬
structed to bring the situation to the attention
of all doal shippers in his district known to be
interested in foreign trade. The response was
immediate and somewhat surprising, since it
showed a large number of firms who were pre¬
pared on short notice to submit bids for this
Spanish market which had hitherto not been ser¬
iously considered as an outlet for American
coal. Some firms were inclined to go slowly
and make a study of this new field ; a few advised
the bureau that they were taking the matter up
at once with their London connections. By far
the largest number of concerns, however, wired
the chief of the bureau at Washington that they
were cabling their bid direct and at once to
Madrid; and the bureau has since been advised
that several of these firms secured large orders
as a result of this prompt action.
.Acquainting business men with specific oppor¬
tunities to sell their products abroad is not the
sole function, however, of the Bureau of For¬
eign and Domestic Commerce by any means, al¬
though it plays an important part in the work of
this organization. A coal shipper who is not
closely in touch with the work of this bureau
should take steps at once to see that his name
is entered in the bureau’s index of American
manufacturers and exporters. In order to fa¬
cilitate this registration, as well as to expedite
the collection and distribution of commercial in¬
formation of all kinds, the central office of the
bureau at Washington has established branch
offices in New York, Chicago, St. Louis, Boston,
Atlanta, New Orleans, Seattle, and San Fran¬
cisco ; and co-operative branches in the local
chambers of commerce in Cleveland, Cincinnati,
Detroit and Los Angeles.
Each branch office has on file, besides confi¬
dential information regarding foreign trade op¬
portunities, lists of importers in foreign countries,
classified commercial trade directories and a fund
of information concerning market conditions in
the various countries of the world. A complete
file of all publications of the bureau, as well as
publications of other branches of the government,
that are of assistance to American exporters
is kept in each branch office.
Consular officers and commerical agents make
the branch offices their headquarters during leave
of absence in this country, and the commercial
agent in charge of each branch office gladly ar¬
ranges conferences between exporters in his dis¬
trict and these men.
The Bureau of Foreign and Domestic Com¬
merce has three principal sources from which it
obtains trade information from foreign countries.
The United States Government maintains abroad
nearly three hundred consular officers, and in
addition many consular agencies. These consular
officers, while accredited to the Department of
State, nevertheless furnish the bureau with a
great fund of information relating to the trade
of their respective districts, including annual re¬
views of commerce, special reports called for
by the Department of Commerce, lists of im¬
porters, notices of bids for contract work, re¬
quests of merchants to be placed in communica¬
tion with American exporters, etc.
A second source of information is the bureau’s
staff of ten commercial attaches stationed in the
principal countries of the world. Although lo¬
cated at one post, like consular officers, the com¬
mercial attache is free to travel within the field
to which he is assigned. He has but one function
— the facilitation of commerce between the United
States and the country or countries to which he
is accredited. Each attache speaks the language
of the country in which he is located and is
thoroughly conversant with its commercial
usages.
Another source from which the bureau derives
a great deal of information is the commercial
agent branch of the service. Most of these men
are taken from active work in some particular
industry or some special branch of commerce
and are experts in their respective lines. They
travel widely and make reports as to the methods
of manufacture and special requirements in the
lines that they are investigating.
The information collated by the Bureau of
Foreign and Domestic Commerce is distributed
chiefly through its publications which include
monthly, quarterly, annual and special bulletins
and a daily trade journal called “Commerce
Reports.” Any American business man can sub¬
scribe to this daily publication by the payment
of a nominal sum, and this bulletin has clearly
demonstrated its value as the organ through
which vital and up-to-the-minute information on
foreign trade matters is distributed to business
men of the country.
The Bureau of Foreign and Domestic Com¬
merce can supply every eoal dealer with a for¬
eign trade information service of a distinct type.
October Anthracite Figures.
The shipments of anthracite, as reported
to the Anthracite Bureau of Information,
amounted in Cfctober to 0,505,893 long tons.
This showed an increase over the preceding
month of September of 987,121 tons, but was
still 138,584 tons short of the shipments in
October, 1914. The shortage for the month in
1915, as compared with the corresponding
month the previous year, was in the shipments
from the Wyoming and Lehigh regions, whose
combined total showed a decrease of 250,510
tons, while the Schuylkill region increased 111,-
926 tons.
The total shipments for the first ten months
of 1915 amounted to 53,885,003 tons, igainst
56,712,057 tons in 1914, a decrease so far this
year of 2,827,054 tons.
The shipments for October include all the
coal shipped from the breakers or washeries.
In previous statements a relatively unimport¬
ant quantity put into storage by one of the
transportation companies was not included.
There was only a slight change in the stocks
at tidewater shipping ports in October, as
compared with September, the tonnages being
for the two months 625,821 tons and 633,338
tons, respectively, a decrease of 7,517 tons,
and as there was a decrease also in Septem¬
ber, as compared with August, of about 20,000
tons, it appears that these are being drawn
upon somewhat to supply the deficiency in
purchases during the summer months.
Statement of shipments of anthracite coal
by the initial transportation lines for month
of October, 1915, compared with the corre¬
sponding period last year.
Philadelphia & Reading Railroad
Lehigh Valley Railroad .
Central R. R. of New Jersey...
Dela., Lacka. & Western R. R..
Delaware & Hudson Co .
Pennsylvania Railroad .
Erie Railroad .
N. Y., O. & W. R. R .
, - Total Shipments - ^
Oct.. 1915. Oct., 1914.
1,199,284
1,266,539
895,895
888,609
701,279
637,052
708,007
209,227
1,092,056
1,391,144
892,386
990,570
678,104
611,593
773,866
214,757
Total
6,505,892 6,644,476
Year 1915.
Philadelphia & Reading Railroad. 9,195,089
Lehigh Valley Railroad . 10,714,002
Central R. R. cf New Jersey ... .j 0,532,694
Dela., Lacka. & Western R. R.... 7,079,800
Delaware & Hudson Co . 6,671,603
Pennsylvania Railroad . 4,870,961
Erie Railroad . 6,524,667
N. Y., O. & W. R. R . 1,696,187
Year 1914.
9,961,608
10,941,943
7,452,435
8,128,793
6,032,697
5,308,918
6,943,394
1,942,269
Total . 53,885,003 56.712,057
Coal on hand at tidewater shipping ports October 31,
1915, 625,821 tons, and September 30, 1915, 033,338 tons,
a decrease of 7,517 tons.
Statement of shipments of anthracite for month
of October, 1915, compared with correspond¬
ing period last year, by regions.
Region 1 —
Wyoming .
Lehigh .
Schuylkill .
October,
1915.
_ 3,729,867
- 1,893,225
October,
1914.
3,932,692
930,485
1,781,299
Difference,
Decrease.
202,825
47,685
*111,926
Total .
_ 6,505,892
6,644,476
138,584
Regions —
Wyoming .
Lehigh .
Schuylkill .
Year 1915.
_ 32,335,981
_ 7,089,501
- 14,459,521
Year 1914.
33,696,604
7,642,774
15,372,679
Difference,
Decrease.
1,360,623
553,273
913,158
Total .
56,712,057
2,827,054
■“ Increase.
Buckwheat No. 1
an! larger Sizes.
October, Oct iber,
1915. 1914.
1,031 456 n,S3,625
Philadelphii S: Reading Railway . I,i20,262 1,212,392
Lehigh Valley Railroad . 714.136 732,135
Central Railroad of New Jersey . 743,449 838,826
Deiawa.-e, Lackawanna & Western Railroad . 595,890 582,234
Delaware & Hudson Company . 545,023 532,831
Erie Railroad . 594,488 629,519
N. Y., O. & W. R. W . 183,322 189,280
Sizes Below
Buckwheat No. 1 .
October, October,
1915.
1914.
167,828
138,431
146,277
173,762
181,759
159,951
145,160
151,744
105,389
95,850
92,029
78.762
113,519
144,347
25,905
25,477
Total Shipments
October, October,
1915. 1914.
1,199,284 1,092,056
1.266,539 1.391,144
895,895 892,386
888,609 990,570
701,279 678,104
637,052 611,593
708,007 773,866
209,227 214,757
Total . 5,,528,026
Year 191 5.
Philadelphia & Reading Railway . 8,019,892
Lehigh Valley Railroad . 9,604,914
Central Railroad of New Jersey . 5,349,427
Delaware, I.ackawanna & Western Railroad . 6,439,640
Delaware & Hudson Company . 5,672,276
Pennsylvania Railroad . 4.126,901
Erie Railroad . 5,484,380
N. Y., O. & W. R. W . 1,518,372
5,611.162
977,866
973,314
6,505,892
6,644,476
Yea - 1914.
Year 1915.
Year 1914.
Year 1915.
Year 1914.
8,708,209
1,175,197
1,253.."99
9.195,089
9,961,608
9,782,945
1,109,088
1,158,998
10,714,002
10,941,943
6,162,448
1,183,267
1,289,987
6,532,694
7,452,435
6,797,952
1,240,160
1,330,841
7,679,800
8.128,793
5,180,631
999,327
846,066
6,671,603
6,032,697
4,611,522
744,060
697,396
4,870,961
5,308,918
5,794,240
1,040,287
1,149,154
6,524,667
6,943,394
1,732,671
177,81 5
209,598
1,696,187
1,942,269
Totiil . . . 46,215 802 4?,7/'6,618 7,669,201 7,935,439 53,885,003 56,712,057
Coal on hand at tidewater shipping ports, October 31, 1915, 625,821 tons; September 30, 1915, 633,338 tons; de¬
crease, 7,517 tons.
410
THE BLACK DIAMOND.
[November 20
r
Mine Safety at Strong, Colo.
'I'he Sunnyside Coal IMining Company, at their
mine at Strong, Colo., furnishes each man enter¬
ing their employ with a book of rules govern¬
ing the mine. The following are the rules em¬
bodied in this book ;
Number of Hours in Working Day. — The law
provides that all inside men must work not over
eight hours a day. All outside men work nine
hours a da}'. All inside and outside men must
be at their working places at 7 ;30 a. m. Thirty
minutes will be allowed for the noon period.
Fall Occurring in Working Place. — When a
fall occurs in a working place at any time, the
miner on finding same shall immediately notify
the pit boss, and the company shall cause the
same to be cleaned up, unless the fall shall be
due to the fault of the miner, in which event the
miner shall put same in good order and condi¬
tion. Preference shall be given by the company
to the miner in cleaning up such fall on com¬
pany time.
Fault Occurring in Working Place. — When a
fault occurs in a working place, the miner may
be put on company time, or may be given an¬
other place.
Timbering and Track. — All rooms, entries and
other working places shall be timbered by the
miner in a workmanlike manner before leaving
his work, and the pit boss shall see that suffi¬
cient timber is furnished to do the work. .411
miners and loaders are required to lay track in
their respective working place;.
First Aid. — For the purpose of caring for any
person or persons accidentally injured, the com¬
pany will provide appurtenances and medicines
for first relief to the injured. (Draeger pul-
motor immediately available.)
Blacksmith Charges. — Men loading after ma¬
chines will be charged fifty cents per month for
blacksmith. All special work must be paid for
by the miner or loader.
Coal Supplied to Employes. — For coal for em¬
ployes’ use the company will charge $2. .70 a ton
delivered.
Grievances. — Employes may present any griev¬
ance to the pit boss and superintendent, and,
failing to receive satisfaction, may take it up
with the president, who will hear all complaints
on pay day of each month.
Pay Day.- — Pay day will be the second Satur¬
day in each month. By request, employes will
be “time checked” on the sixteenth day of each
month, to include the first fifteen days’ wages.
An employe voluntarily leaving the company’s
service, giving ten days’ notice to the superin¬
tendent prior to the time he leaves, will receive
a time check ; otherwise he will have to wait
until the regular pay day for his check. An
employe desiring a time check for the first fifteen
days’ wages must give notice at the mine office
on the 15th day of the month.
Credit for Work Done. — .4 daily bulletin will
be posted, showing the pounds credited to each
loader, and the hours credited to each day man.
.411 claims must be made within twenty-four
hours.
Check Weighman. — It is perfectly agreeable to
the company that the loaders and miners may
provide a check weighman.
Delivery of Cars to Working Places. — The
company will deliver empty cars to the customary
point, and the loader will be required to de¬
liver the loaded car to a convenient point where
the company can couple rope or motor to the
car. In the event of a wreck caused by careless¬
ness of the loader, the loader will replace the
track on his own time. The company will fur¬
nish sufficient sprags to protect the loader in
dropping loaded cars to the point where they
can be coupled to rope or motor.
Loading of Coal. — Loaders that intentionally
or persistently load coal carrying more than the
average of small coal, or load dirt, rock or bone.
so as to make the coal unmarketable, are sub¬
ject to a reduction of weight on each car so
loaded.
Carrying Powder into the Mine. — Every loader
must provide himself with the usual powder car¬
rier as prescribed by law, which must not con¬
tain more than powder sufficient for one day’s
use.
Safety. — All underground employes are abso¬
lutely forbidden and prohibited to travel main
haulage ways during working hours, e.xcept those
whose duties require them to do so, and no em¬
ploye will be permitted to ride trips.
Identification. — .411 men employed under¬
ground must provide themselves with an identi¬
fication check. .4nyone entering the mine must
take his check from the board and carry it with
him inside the mine. Upon leaving the mine
he must place his check on the board at the
entrance of manway.
Application for Employment. — .4nyone desir¬
ing employment with the company must make
application on the company’s regular form. Ap¬
plicants accepted will receive one book of rules,
one copy of “Colorado Mining Laws,” and one
identification check.
The last sheet in this book of rules is per¬
forated, and is a receipt for the above mentioned
articles, which must be signed by each new em¬
ploye at the mine.
It is believed that such rules as these, placed in
the hands of every employe, go a long way to¬
ward reducing the number of accidents in mines.
Colorado. l. e. c.
Inspection of Mines.
The number of men to whom the task is
assigned of inspecting all the working parts of
the anthracite mines of Pennsylvania every morn¬
ing before the mine workers are allowed to enter
has been greatly increased in the last few years,
and the inspection now continues throughout the
working day. This daily inspection had been
brought to .such a degree of perfection several
The problem of getting a quick and accurate
transmission of orders from the office of coal
companies to plants and yards located at a dis¬
tance from the office has been a difficult one for
dealers to solve. ‘
However, the Staples Coal Company of Taun¬
ton, Mass., has seemed to solve the problem of
transmitting orders from their main office to their
five different yards, through the installation and
use of a system called a telautograph.
This is a device sold by the Gray National
years ago that it was being imitated in the bitu¬
minous regions of the state, but efforts to perfect
it still further continues.
Each morning the assistant foremen, or “fire¬
bosses,” visit every gangway and chamber. The
districts assigned to them to cover are sufficiently
small so that they can complete the inspection in
from one to two hours. They make tests with
their little Humphrey Davy lamps to locate dan¬
gerous gas, and when a cap of vapor forms above
the flame, or it burns low, or is extinguished, no
miner is allowed to enter the chamber until the
.gas has been swept away.
In addition to this, the timbering and the “roof”
must be examined to forestall the risk of a
“cave,” and the inspector of equipment must
e.xamine all the fire equipment, pumps and engines
for safety and cleanliness. The men entering the
mine must pass the foremen’s offices, at the bot¬
tom of the shafts, and each one of them must get
his O. K. before he proceeds to work.
Permissible Explosives
Under date of October 25, the Bureau of
Mines placed the explosive "du Pont Permis¬
sible No. t” on its list of explosives permissi¬
ble for use in coal mines. It belongs to Class
la, ammonium nitrate, and is permissible
oidy when used with detonators, preferably
electric detonators, of not less efficiency than
the No. 6. Its unit deflective charge is 278
grams; rate of detonation in by 8-inch
cartridges is 9,610 feet (2,930 meters) per sec¬
ond; and is manufactured by the E. I. du Pont
de Nemours Powder Co., Wilmington, Del.
Under date of November 4, the Bureau of
.■Vlines also placed the explosive “Red H No.
8” on the list of explosives permissible for use
in coal mines. It belongs to Class la, ammo¬
nium nitrate, and is permissible only when
used with detonators, preferably electric de¬
tonators, of not less efficiency than the No. 6.
Its unit deflective charge is 278 grams; rate
ol detonation in 154 hy- 8-inch cartridges is
7,590 feet (2,315 meters) per second; and is
manufactured by the Hercules Powder Com¬
pany', Wilmington, Del.
The number of explosives now on the per¬
missible list is 130. The explosives previously
placed on the permissible list are given in
Technical Paper 100, “Permissible Explosives
Tested Prior to March 1, 1915,” and a supple¬
mentary list inclosed therewith. This publi¬
cation may be procured by request of the
Director of the Bureau of Mines, Washington,
T). C.
J. W. Wardrop, former representative in De¬
troit of the Pittsburgh & Buffalo Coal Company,
is now coverin.g a section of Canadian territory
for the Detroit & Pittsburgh Coal Company.
Telautograph Company and consists of an ar¬
rangement of electrical devices which transmit a
written order from one point to another. In
other words, the system resembles a telephone
e.xcept that hand writing is conveyed over wires
instead of the human voice.
.4s shown by the photograph herewith, the op¬
erator writes an order with a pencil on the trans¬
mitter, which is so connected with two current
carrying rheostats which by its movements while
writing varies the different voltages sent over the
wires which operate the pen at the receiving end
of the system and which reproduces the motion
of the transmitting pencil.
The use of such a system eliminates all mis¬
takes which might occur from misunderstand¬
ings in a telephone message, as the telautograph
reproduces a message identically with that which
it sent.
In Chicago these telautographs are leased to
the Chicago Telephone Company, and which in
turn are leased to those parties using them. The
cost is forty dollars a year per mile of private
wire, and there is no charge for the use of the
device. Hence a dealer who has three yards and
connects all three with his main office two miles
away from each would cost him $249 a year.
On account of the scarcity of tonnage for some
ports on the Great Lakes shippers of anthracite
have had to pay double the ordinary freight rates,
and even more, during the past two weeks. Rates
will remain stiff for the balance of the lake sea¬
son.
Transmitting Orders to a Distant Coal Yard.
No. 21 1
THE BLACK DIAMOND
411
The German Coal Situation.
{Translated for The Black Diamond.)
A German exchange of Oct. 2d contains an
article by G. Gschwender gf Tuebingen, who dis¬
cusses the coal situation in Germany exhaustively.
He says that the press and country are a unit in
the opinion that a coal famine is not to be feared,
but adds significantly :
■‘The precious fuel, it is true, has become some¬
what scarce with us, but the reason for this is
not to be sought in the cessation of shipments
from England, but solely in the lack of rolling
stock which is almost monopolized for military
purposes.
“Austria is wont to buy her entire supply of
coal and coke in Germany, and, if need be, is in
a position to cover her wants by lignite of her
own production. But Germany has in the last
few decades bought large quantities of anthra¬
cite from England and, besides the port cities, it
was Berlin that consumed English coal in stead¬
ily increasing quantities. It is noteworthy that in
the same proportion in which the consumption of
English coal increased, imports of Austrian
brown or lignite coal diminished. So that the
German industry, if a coal famine were to ensue,
could just as Austria herself, fall back upon the
latter’s production of lignite. True it is quali¬
tatively much inferior, but it must be remembered
also, much cheaper fuel.”
The writer then gives some interesting statis¬
tics. “Berlin,” he says, “consumed in 1903 only
344,000 tons of English coal, or twelve percent
of the total amount of coal used in Berlin. In
1913 the consumption of English coal in Berlin
had reached a total of 720,000 tons, or nineteen
percent of the total.
Against this increase, the consumption of Aus¬
trian lignite had decreased in these ten years
from three percent of the total coal used to one-
sixteenth percent.”
A statistical table, which is appended to the
article, shows that Germany imported during the
normal years of 1912 and 1913 from England
9,100,000 tons of anthracite. To her other ene¬
mies Germany sold anthracite, Belgium receiving
in the same period 5,500,000 tons, from which
must be deducted 350,000 tons which Belgium sold
to Germany. To France Germany sold 3,100,000
tons, to Italy 800,000 tons, to Russia 1,800,000
tons. Germany shipped in the same period 800,-
000 tons of coke to Belgium and bought from the
latter 510,000 tons. To France, however, she
sold 2,300,000 tons of coke, to Russia 500,000 and
to Italy 170,000. Germany also shipped 750,000
tons of anthracite briquets to Belgium and
France. From Austria she imported lignite to
the amount of 7,100,000 tons.
On the basis of these figures the writer draws
the conclusion that the cessation of exports to
France, Italy, Russia and Belgium fully makes up
for the cutting off of the English supply of
anthracite, in addition to which, he asserts,
“sight must not be lost of the opportunity to
import all the more Austrian lignite coal and to
render thereby a great service to our faithful
ally.”
International Conference.
The International Trade Conference ar¬
ranged by the foreign trade department of
the National Association of Manufacturers at
the Hotel .^stor. New York city, December
()th, 7th and 8th, promises to be a notable
meeting of prominent men.
Among the papers to be presented and ad¬
dresses to be made at the conference are the
following: “Commercial Treaties and Their
Relation to Foreign Trade,” John Basset
Moore, formerly counselor of the Department
of State; “Transportation and Foreign Trade,”
l)y Professor Emory R. Johnson, of the Uni¬
versity of Pennsylvania, the United. States
Government special commissioner on Panama
canal traffic and tolls; “Credit, Banking and
Exchange,” J. J. Arnold, manager foreign ex¬
change department. First National bank, Chi¬
cago; Benjamin Joy, vice-president National
.Shawmut bank, Boston; David H. G. Penny,
vice-president Irving National bank. New
York, and V. Gonzales, banking adviser of the
X. .A.. M., delegate to the Pan-American Finan¬
cial Conference, and member of the Interna¬
tional High Commission; “General Review of
the World’s Commerce,” Dr. Albert A. Snow¬
den, member of the N. A. M.’s trade commis¬
sion to Australia and the far east in 1914;
“The Present Export Situation,” Dr. E. E.
Pratt, chief, bureau of foreign and domestic
commerce; “International Trade as a Sign of
National Prosperity,” John M. Clausen, Crocker
National bank, San Francisco ; “Trade Relations
Between Australia and the United States,” P.
E. Quinn, former member of the parliament
of New South Wales; “Advertising in Foreign
Trade,” H. M. Kahler, editor of “How to Ex¬
port”; Elemental Conditions in Credit Informa¬
tion,” J. H. Tregoe, secretary National Asso¬
ciation of Credit Men.
Soo Canal Traffic.
The statistical report of lake commerce
through the canals at Sault Ste. Marie, Mich¬
igan and Ontario, for the month of October,
1915, issued by L. C. Sabin, general superin¬
tendent,' is as follows:
EAST
BOUND
U. S.
Can.
ARTICLE.S.
Canal.
Canal.
Total.
Copper .
Short tons. .
15,526
6,752
22,278
Grain .
Bushels ....
5,841,877
3,848,973
9,690,850
Hnilding
Flour .
Barrels ....
934,330
638,630
1,572,960
Iron Ore. . . .
Short tons. .
5,470,808
1,405,762
6,876,570
Pig Iron ....
Short tons. .
0,050
2,070
8,726
Dumber ....
M. ft. B. M.
58,568
4,716
63,284
Wheat .
Bushels .... 4
7,783,522
17,603,834
65,387,356
Geieral Mer
chandisQ . .
Short tons. .
40,259
16,207
56,460
Passengers. . .
Number . . .
85
452
537
WEST
BOUND.
Coal, hard. . .
Short tons. .
200,188
260,188
Coal, soft. . .
Short tons..
1,537,590
105,693
1,643,283
T'lntir
n,- y
373
373
Manufactured
Iro.i .
Short tons. .
19,652
4,726
24,378
Iron Ore. . . .
Short tons. .
1,500
1,500
.Salt .
Barrels ....
113,876
8,540
122,416
Gene 'al Mer
chandise . .
Short tons. .
163,905
46,853
210,758
Passengers. . .
Number . . .
59
313
372
SUMMARY.
Vess'I Pss-
sages .
.Number ...
2,421
810
3,231
Uegistered
Tonnage . .
X;t .
7,305,359
1,977,901
9,283,260
Freight —
Hast Pound.
Short tons . .
7,292,000
2,107,436
9,399,436
West Round .
Short tons. .
1,999,917
158,498
2,158,415
Total freiglu.
Short tons. .
9,291,917
2,265,934
11,557,851
Short tons are tons of 2,000 pounds.
September Coal Exports.
The Department of Commerce, throu.gh the
Bureau of F'oreign and Domestic Commerce at
Washington, has issued its monthly statement cov¬
ering the exports of domestic coal and coke from
the United States, and bunker coal laden on ves¬
sels engaged in the foreign trade at the specified
districts, during the month of September, 1915.
It follows:
DO.MKSTJC EXPORTS, TONS.
Districts —
Maine and New Hampshire.
Maryland .
r- - Coal
Anthra.
97 1
252
Bitum.
22
200,926
2
Coke.
208
New York .
Philadelphia .
20,273
11,552
2,00S
64,351
60
2,922
97
603, .558
20
502
New Orleans .
59
909
3
Arizona .
2,308
7,090
El Paso .
10,971
2,775
36
2,113
San Francisco .
20
Washington .
521
3,345
PulTalo .
119,440
174,251
34,316
Dakota .
700
2,311
159
Duluth and Supj^rior .
6,160
1,627
182
Michigan .
24
10,367
6,407
Ohio .
36
646,287
379
Rochester .
50,713
60,062
543
St. Lawrence .
78,800
18,660
1,616
Vermont .
790
460
15
Total .
289,790 1
,832,977
59,395
BUNKER
COAL.
Districts — Gross Tons.
Maryland . 48,456
New York . 284,634
Philadelphia . 29,648
I'irginia (Hampton Roads) . 162,190
The Liverpool Journal of Commerce informs
us that the interests identified with D. A. Thomas
are quite active during his absence from Car¬
diff on his mission to this country for the British
government. Says this paper: “Another Cardiff
company, with Mr. D. A. Thomas as a director,
lias been registered under tlie style of the Plisson
& Lyslierg Insurance, Ltd. I'lie capital is £20,000,
in £l shares, and the object is to carry on busi¬
ness as insurance brokers, a.gents, insurers of
steamships, etc. The subscribers are Lady Mar¬
garet II. Mackworth and Mr. H. O. King, while
the directors are Messrs. D. A. Thomas, E. Plis¬
son, Lady Mackworth, W. E. Clare and A. B.
Craggs. The directorships already held by Mr.
D. Thomas number over thirty, and he is chair¬
man or deputy chairman of most of the com¬
panies.”
Trade at Para, Brazil.
George H. Pickerill, .American consul at
Para, Brazil, writes The Black Diamond as
follows :
“The coal consumption has decreased, but it
would not be correct to ascribe the total de¬
crease to the war. Part of this is direcfly
chargeable to the continued lowering of the
price of rubber and the fact that this reduction
compelled them to resort to the use of wood,
which could be obtained at a cheaper price.
Many of the river steamers, ice factories, elec¬
tric works and breweries are now using exclu¬
sively wood and will continue to do so for
some time after a parity is established as the
money spent for fuel remains in the country
and has a tendency to assist general business.
In re.gard to this last (general business) I beg
to report that it is improving and the indica¬
tions are that the improvement this year will
be much greater than w'as expected. Credits
today are very good. Orders still continue
small in size but their frequency is highly satis¬
factory.
“For the immediate future in coal I can see
no improvement for the reasons given. Some
coal must be used, but where it can be sub¬
stituted by wood there is no doubt but what
the substitution will be made. Wood is selling
here today at a price per meter cubic foot, which
at today’s exchange would be about 92c. Coal
unless one has a contract cannot be bought for
less than $15.00 per ton and in some cases
the prices are much higher. I cannot give you
the range of prices for the reason that the
principal buyer, the Lloyd-Brazileiro, do not
inform their local agents as to prices and
the same can in a measure be said of the Booth
Company. As the coal received this year came
from America, Norfolk, I have no doubt but
what you can easily obtain the prices, as also
the freights. The amount of coal arriving to
the end of August, 1915, as tons 38,821, Amer¬
ican 90 per cent.
Year 1914 . do. 69,387 Part Welsh
Year 1913 . do. 116,658 {/3 American
Year 1912 . do. 140,630 40% American
Year 1911 . do. 153,670
Year 1910 . do. 150,404
“For reasons best known to themselves the
coal importers are as yet continuing to store
their coal in lighters, although the Port of Para
can take care of it should they so desire. The
regular unloading rate can easily be run up to
GOO tons per day of twenty-four hours, but 300
tons they can do easily if it is made agreeable.
The old charter parties called for an average
of 200 tons per day exclusive of holidays, etc.,
but this was mainly to allow the buyers time
to deliver it to steamers without the necessity
of putting it first into lighters.
“I have just had a very interesting interview
with the general manager of one of the large
transportation companies of this valley and
I was pleased to learn that they were getting-
most excellent results from the American coal
that they have been importing. He tells me
that on some of their craft they are obtaining
better results than they have ever had with
other foreign coals. The friability and absence
of lumps has been somewhat of a bar to the
introduction of our coal but the last imports
have been harder and there has been a notice¬
able increase in the size of that received.
“Generally speaking business has improved,
but it is yet very far from being as large in
amount as it was in 1912 or 1913, and I doubt
very much if it will reach those figures for
some years to come unless the price of rubber
advances very materially. Credits on the other
hand are much better today than they have
ever been and the tendency is to still further
improve. There has been a general tendency
to reorganize all former business methods and
the good effect of this can be seen in the pres¬
ent credit situation.”
Bids were opened on Thursday, November D,
by the president of the Borougli of Brooklyn
for supplying 3,300,000 pounds of anthracite coal
for the various public buildings, courts and baths
in the Borou.gh of Brooklyn for the year lt)15.
Bidders and their bids were as follows: Thos.
W. Wood .Sons, $2.95J/^ per 1,000: Bacon Coal
Company, $2.90 per 1,000: John F. Schniadeke,
$2.85 per 1,000.
The Byproducts Coke Company of Canal
Dover. Ohio, has been incorporated with a
capitalization of $400,000 by H. M. Hanna, R.
L. Ireland, F. 11. Richards, .S. W. Folsom ami
M. McMurray.
412
THE BLACK DIAMOND
[November 20
Coal and Coke Rates.
Washington, D. C., November 17. — The fol¬
lowing rates have been filed with the Inter¬
state Commerce Commission, since the last
report;
Kansas City Southern, 1. C. C. No. 3438,
Dec. 2. (S. P. 34820.) Coal facings and coal
dust from Calhoun, Okla., to Atchison, Kan.,
$2.35; Council Bluffs, la., $2.00; East St. Louis,
111., .$2.30; Kansas City, Mo., $2.10; Leaven¬
worth, Kan., $2.35; Mt. Vernon, III. (R), $2.90;
Omaha, Neb., $2.00; St. Joseiih, Mo., $2.35, and
St. Louis, Mo., $2.10 per net ton.
Chicago, Burlington & Quincy, I. C. C. No.
11447, Dec. 10. Soft coal from Kirksville, Mo.,
to Council Bluffs, la., Omaha, South Omaha
and Nebraska City, Neb., lump and egg coal
$1.40; mine run, nut, pea, slack and screenings
coal, $1.10 per net ton (R).
Fort Smith & Western, I. C. C. No. 429,
Dec. 11. Lump coal from Blocker, Bohoshe,
Featherston, Kinta, Lequire, McCurtain, Mas¬
sey, Milton and Quinton, Okla., to Arkadel-
phia, Arkansas City, $2.15; Benton, $1.90; Little
Rock, $1.85; Hope, $2.30; Helena, $2.45; El
Dorado, Ark., $2.50 per net ton. Slack coal
from above named points to Arkansas City,
Arkadelphia, $1.90; Paragould, $2.25; El Do¬
rado, Helena, $2.25; Little Rock, $1.60; Pine
Bluff, $1.70; Hope, Ark., $2.10 per net ton.
Baltimore & Ohio Southwestern, I. C. C. No.
7259, Dec. 15. Bituminous coal, all grades,
from Norris City, Ill., to Vincennes, Ind., 55c
per net ton (A).
Baltimore & Ohio Southwestern, 1. C. C. No.
7264, Dec. 15. Coal, all grades, from Spring-
field, Edinburg, Taylorville, Pana and Tower
Hill, Ill., to Vincennes, Ind., 70c per net
ton (A).
Baltimore & Ohio Soutfivvestern, I. C. C. No.
7265, Dec. 15. Bituminous coal from Becke-
meyer, Breese, Caseyville, Lebanon, O’Fallon
and Trenton, Ill., to Chicago, Ill., proper,
$1.02; when for beyond, 92c per net ton.
Baltimore & Ohio Southwestern, 1. C. C. No.
7267, Dec. 15. Bituminous coal from Becke-
meyer, Breese, Caseyville, Lebanon, O’Fallon
and Trenton, Ill., to Chicago, Ill., proper,
$1.05, for beyond, 95c; Joliet, Ill,, $1,05; Peoria,
111., proper, 97c, when for beyond, 75c, and
Whitehall, Ill,, 80c per net ton from Edinburg,
Pana, Taylorville, and Tower Hill, Ill,, to
Chicago, Ill,, proper, 97c; for beyond, 87c;
Joliet, 111., 87c; Peoria, Ill., proper and for
beyond, 77c, and Pontiac, Ill,, 87c per net ton,
Chicago & Alton, Sup, 13 to I, C, C. No,
.4468, Dec, 15, From East St, Louis, Ill,, to
Carbon Cliff and Silvis, Ill,, lump, egg, nut
and mine run, pea, slack and screenings coal
$1,20 per net ton (A); to Moline, East Moline,
Rock Island, Ill., and Davenport, la., lump,
egg, nut and mine run and pea coal, slack and
screenings, $1.15 per net ton.
Chicago & Alton, I. C. C. No. A823, Dec. 15.
From Joliet, Ill., to Chicago, Ill., soft coal 55c
(A) and hard coal 50c per net ton; gas coal
from Chicago, Ill., to Joliet, Ill., 45c (A) per
net ton.
Chicago & Alton, I. C. C. No. A824, Dec. 15.
Hard coal from Chicago, Ill., to Davenport,
la., Moline, Rock Island, Milan, Taylor Ridge,
Reynolds, Doratha, Matherville, $1.30; Gil¬
christ, $1,196; Aledo, Burgess, Suez', Norwood,
Springdale, Cedar Hill, Riverside Park, $1,196;
Sickman, Butler’s Siding, Cameron and Gales,
Ill., $1.13 per net ton.
Chicago Great Western, Sup. 36 to I. C. C.
No. 4908, Dec. 15. Bituminous coal, passing
through screens not exceeding in size l]/2 inch
bar and 2-inch round hole, from Milwaukee,
Wis., to Mclnture, la., and Osage, la., to Ham¬
ilton’s Siding, la., $1.46 per net ton; from Du¬
luth, Minn., and rate points to Mason City, la.,
and directly to intermediate points, $1.46 per
net ton.
Cincinnati, Hamilton & Dayton, I. C. C. No.
3123, Dec. 15. Bituminous coal from Keys,
Ill., to Walkerton, Ind., 77c per net ton (A);
applies only on shipments destined beyond.
Northern Pacific, I. C. C. No. 5920, Dec. 15.
Lignite coal from Lehigh, Zenith, and Belfield,
N. D., to Carlyle, Ollie, Mont., $1.00 (R);
Yates, Mont., 90c; Wilbaux, 95c; Beaver Hill,
Heckman, Hodges, Iona, Allard, Curry, Glen¬
dive, $1,00; Stipek, Intake, Burns, Savage,
Craneville, Sidney, $2.00; Thurston, $1.10; Col¬
gate, $1.25; Hoyt, $1.30; Marsh, $1.40; Conlin,
$1.50; Fallon, $1.60; Cato, $1.65; Terry, $1.70;
Kamm, $1.75; Blatchford, $1.80; Zero, Mont.,
$1.85; Shirley. $1.90; Jordan, $1.95; Tusler,
$2.00; Murn, $2.05; Miles City, $2.10; Fort
Keogh, $2.10; Ulmer, $2,15; Horton, $2.20;
Clermont, $2.25; Hathaway, $2.30; Joppa, $2.35;
Rosebud, $2.40; Dewey, $2.45; Forsyth, $2.50;
from Medora, N. D., to Carlyle, Mont., 90c;
(lllie, Mont., 90c; Yates, 80c; Wilbaux, 85c;
[leaver Hill, Heckman, Hodges, Iona, Allard,
Curry and Glendive, Mont., 90c; Stipek, In¬
take, Burns, Savage, Craneville, Sidney, Mont.,
$1.90; Thurston, Mont., $1.00; Colgate, $1.15;
Hoyt, $1.30; Marsh, $1.30; Comlin, $1.40; Fal¬
lon, $1.50; Cato, $1.55; Terry, $1.60; Kamm,
$1.65; Blatchford, $1.70; Zero, $1.75; Shirley,
$1.80; Jordan, $1.85; Tusler, $1.90; Murn, $1.95;
Miles City, $2.00; Fort Keogh, $2.00; Ulmer,
$2.05; Horton, $2.10; Clermont, $2.15; Hatha¬
way, $2.20; Joppa, $2.25; Rosebud, $2.30;
Dewey, $2.35; Forsyth, $2.40 per net ton.
Michigan Central, Sup. 5 to I. C. C. No.
4775, Dec. 20. Coal and coke to Thamesford,
Out., from Buffalo, Black Rock, Suspension
Bridge, N. Y., anthracite briquettes and an¬
thracite coal 90c, bituminous coal and coke
90c per net ton.
(R) indicates a reduction in rate.
(.\) indicates an advance in rate.
Why Miners Will Attack.
(Concluded from page 405.)
operators of the extent of the determination of
the miners to win their fight for recognition of
the union. The operators know the weak spot in
their own prganization — that George H. Baer
is dead. They know, too, that the miners are
going to make their drive against that point.
They are watching every point in strategy and are
not going to give in. This much is given as an
assurance all along the line.
Mr. Parker’s Questions.
This assurance of a stand pat attitude came
somewhat as a surprise in view of a recent com¬
munication sent out from the headquarters of the
Anthracite Bureau of Information. E. W.
Parker wrote a letter to quite a number of oper¬
ators asking what had been their experience with
the union. The interpretation given this inquiry
— outside the anthacite field, be it known — was
that the operators were weakening and were
thinking of giving in. When this phase of the
question is presented to some of the operators,
thev smile at it. They say that :
“Mr. Parker has been a government employe,
you know. There he has sent out all sorts of
‘questionaires.’ In the Government service they
have no significance except that the bureau wants
to get all the information it can. In the anthracite
field the same purpose is behind the questions.
They merely want to know without committing
the operators to anything.”
The Operators’ Plans
There is another thing which the miners seem
to have overlooked. Just whether they have
overlooked it is not so certain. But they seem to
have overlooked it and that is enough. That fact
is that the operators are not so much without an
organization as may seem. They are not without
leadership even though Baer is dead. No one
in the east expects another Baer to arise between
now and the first of next April. It is taking too
long chances to expect any such thing. The oper¬
ators are taking no chances and certainly no long
ones.
On the contrary, negotiations will be conducted
this year, not by an individual, as has been the
case, but by committees. Indeed, Mr. Baer, three
years ago, put this system in vogue that it might
be there as an operating force when and if he
should die.
At that time the so called “company” operators
did not conduct the negotiations alone. Rather
the field was broadened immeasurably by getting
into the committees some of the strongest men
among the “individual” operators. Three years
ago, the negotiations were conducted by commit¬
tees representing both of these interests. This
was Mr. Baer’s arrangement and it is most likely
to be the one that will be brought into play this
year. That is the understanding at the minute, at
least.
As a matter of detail, it is expected that there
will be a general or parent board which will map
out the general program. This will represent
both classes of .operators. Working under it
will be committees of its appointing to handle
the details. As this indicates, there may be no
general head of the operators such as formerly
was the case, but there is an organization just
the same.
This fact seems finally to have gotten into the
heads of the miners’ leaders. They thought for
a while they were going to have a walk-away.
They counted a little too much, perhaps, on the
death of Baer. Still, the fact they are going to
meet stiff and organized opposition does not abate
the temper of their demands, nor does it make
them less keen to bring the operators into subjec¬
tion. It seems, if anything, to have whetted their
desire to win. Thus we get the first suggestion of
a resort to an old and familiar trick. It is one
which they use in other parts of the country, but
one which is practically new in the anthracite
field.
The Miners Weaken
For example, there has been heard in the
last few days the first talk of splitting the
anthracite field up into districts. The arguments
in favor of this plan are convincing, were it not
for the fact they are a trifle shop worn. That is,
the men say that there are three natural districts
in the anthracite field. In one the veins are clean,
flat, and thick. In another district, the veins are
thin, dirty and pitching. Therefore a labor situ¬
ation in one field does not compare with that in
another.
This sounds good when it is heard the first
time. But it loses its force when it becomes
known that this is an old trick of the miners.
It is a plain effort to split up a solid organization
and whip it piecemeal. The same thing was done
in Ohio last year. They could not whip the oper¬
ators of the entire state, so they made peace with
the Hocking operators and then went about de¬
liberately the work of pulverizing the eastern
Ohio field. The same thing has been tried in
West Virginia. The same game has been worked
on Illinois, until that state has the miners’ yoke
riveted around its neck.
Now the same proposal comes up in the an¬
thracite field. They want to use the Schuylkill
district to whip the Wyoming and contrariwise.
The purpose is to break up the major organization
that they may cut the smaller units to pieces at
their leisure.
The operators, however, have had two tastes
of the skill of the union officials. One of them
was in the button incident. The operators, ac¬
cordingly, are walking into no open traps, espe¬
cially when those traps are so clearly labeled as
in this case.
For these various reasons, there is going to be
a rather serious struggle in the anthracite field.
One is unavoidable. Whether it is long-drawn
out, as in the case of 1902, depends upon a matter
of money. And, the matter of money depends
upon, first, the number of districts drawn out on
a strike next spring and, second, on the demand
for coal at that time. If the demand is keen and
if the operators cannot afford to lie idle for any
length of time, the demands may be multiplied
and thus the whole program of the union may be
pushed forward quite rapidly.
Rate on Bunker Coal.
Norfolk coal shippers have been notified by
the Norfolk & Western, Virginian and Chesa¬
peake & Ohio railroads that the promulgated in¬
crease of twenty-eight cents a ton on bunker coal
from the mines to the piers at Hampton Roads
will not become effective January 1st, the date
announced for the change in freight rate to be
made.
The principal reason for holding up the change
was the test case that is now before the Inter¬
state Commerce Commission applying to south¬
ern railroads shipping particularly to New Or¬
leans. The roads have reached an- understand¬
ing that until the commission finally decides the
case, the bunker coal freights from the mines to
Hampton Roads will remain as they are.
It was also announced that concurrently with
the increase in the freight rate, the port charges
of $30 for foreign vessels and $11 for coastwise
vessels would be cancelled. This charge always
has been borne by the supplier of coal.
The new charges for docking and undocking
were to be one and one-half cents a ton net regis¬
ter for vessels without steam and one cent a ton
net re.gister for vessels under steam, these charges
covering the handling both in and out.
The bunker coal lines to New Orleans have
protested the decision of the Interstate Com¬
merce Commission that gave the Hampton Roads
lines the opening for an advance, and the latter
have concluded to await the final outcome of the
case before attempting to raise the freight rate
on bunker coal.
A number of Boston shipping men recently at¬
tended the launching of the steamer Jonancy at
Camden, N. J. The boat was built for the Poca¬
hontas Navigation Company of Boston, is one
of three boats to be completed next year, is of
5.450 tons and will operate between Norfolk and
Boston.
No. 21]
THE BLACK DIAMOND
413
A Good Electric Sign.
All sorts of novel and effective ideas are being
put forward nowadays for use in connection with
electric signs. Many coal dealers use signs of
this kind, and one of the new ideas offered
seems particularly appropriate for a coal con¬
cern. It involves combining a weather forecast
with the regular announcement of the dealer.
Usually he will have the word “coal” on the
electric sign spelled out in twelve-inch or larger
letters, with the name of the concern painted
above it. Immediately below the word “coal,”
arranged in three columns or two, are the words,
“fair,” “rain,” “warmer,” “colder,” “wind,” and
“snow.” The weather forecast is indicated by a
lamp burning in front of any of these words —
either in the daytime or at night, of course.
The dealer who is using this sign receives
daily the official forecast of the weather bureau,
and is able to announce the weather probabili¬
ties to the public by lighting the proper lamp or
lamps by means of switches, one of which is
provided for each lamp.
The fact that information about the weather
is something that interests everybody would be
a sufficient argument in favor of the stunt, while
added to this one must remember that the coal
dealer, above all others, is the merchant whose
business is most affected by weather conditions,
and who, therefore, should logically be looked to
for information regarding it.
An Excuse or a Reason?
An old professor whose gruff and sometimes
unsympathetic methods caused him to be the
terror of the college freshmen whom he taught,
once called before him a youngster who had
failed to prepare the work which had been as¬
signed the day before. The lad murmured some¬
thing about having been out for football prac¬
tice and having had no time.
“That isn’t a reason,” announced the profes¬
sor ; “that’s only an excuse !”
One is tempted to use the same expression in
discussing the logic or lack of logic back of
the prices which are being quoted on soft coal
in some markets. A good many dealers, as has
been set forth in The Black Diamond, are
actually selling the coal at a loss, figuring the
handling and overhead expenses which must in¬
evitably accumulate against it, in addition to the
cost f. o. b. the mines and the freight.
A coal man who evidently belonged in that
category was asked recently how he figured that
he could make any money on the price basis
he was working on, and his frank, almost naive
reply, was, “Oh, I’m not making anything; but
my competitors aren’t either !”
Is that any justification for selling coal at a
loss— the fact that somebody else is willing to
sell it at that rate also? The ordinary business
man admits that he is not in business for his
health, and proceeds to charge a price that will
make his efforts worth while. The coal dealer,
on the other hand, seems to be content to work
hard and struggle with unsatisfactory labor, ir¬
ritating transportation conditions and other un¬
pleasant factors too numerous to mention —
merely for the satisfaction of seeing somebody
else lose as much money as he does !
This may meet the requirements of the situa¬
tion, judged by the individual dealer, but cer¬
tainly such an attitude is not logical : morever,
it is not business-like ; and, finally, it is not cal¬
culated to keep one in business indefinitely.
Theoretically, it is necessary to meet every cut
in price that competition may spring; actually.
it is not. The dealer who admits that he can’t
sell his product unless his price is as low or
lower than that of everybody else in the market
isn’t a merchant, but a peddler. He hasn’t
learned the a, b, c of salesmanship; and the
sooner he enrolls himself, either in some cor¬
respondence course or night school or elsewhere,
and finds out a few of those things, the better it
will be for him and the trade.
You have lau.ghed at the picture of the little boy
who came in with a black eye and a bloody nose,
and said to his grieving mother, “Oh, mother,
I know I’m a sight, but you ought to see the
other fellow !” The coal man who is cutting
prices, just because somebody else hasn’t sense
enough to charge enough to produce a profit is
assumin.g exactly that position ; only, there’s not
•much of a laugh in it — it’s too serious for that.
The Open Grate Fire.
Eastern retailers, whose business is chiefly on
hard coal, which is not so well adapted for open
fires as bituminous varieties, are featuring cannel
coal and similar fuel, which is well worth while
for this purpose.
A dealer who puts in a stock of cannel coal
to supplement his sales of anthracite will be
able to get a lot of business that would not be
in the market at all otherwise, and by so doing
attract the favorable attention of many con¬
sumers who would have continued to buy all
their coal somewhere else.
One member of the trade who went to the ex¬
tent of sending out a form letter to a lot of
prominent people — the sort whom he thought ap¬
preciated open hearths and were able to use coal
to supply good cheer, as well as simply to fur¬
nish heat, found that he had calculated correctly,
and he got a lot of orders, chiefly for one-ton
lots, from these consumers.
They really appreciated his suggesting the use
of a coal of this kind, for the big lumps, which
burned easily, made a cozy hearth, and helped
to create the “homey” atmosphere which is so
restful and attractive to every member of the
family during cold weather.
Getting an introduction to a worth-while family
by selling something which is so thoroughly
appreciated as this ought to lead up to addi¬
tional business. That is the way this dealer
figures it, and the chances are that he is right.
The Free Lance Solicitor.
In some cities there are men who, without
holding employment or authority from any one
dealer, go about taking orders for coal, and
brokering them with the regular tradesmen at
so much a ton. Twenty-five cents is the usual
amount, though sometimes the solicitor-broker is
scaled down to fifteen cents. At any rate, it is
evident that this much comes off the profit of
the dealer who handles the business, inasmuch
as the consumer pays only the regular price, and
may even have specified the name of the concern
which she wanted to fill the order.
Now, if the solicitor actually created the busi¬
ness, he might have a just claim on the dealer.
But this is obviously not the case. Somebody
would have secured the business anyhow, and in
many cases the same dealer who paid a com¬
mission on it would have received the order di¬
rect, had not the broker been allowed to inter¬
pose himself.
There is a plain and obvious method of get¬
ting rid of an illegitimate factor in the trade
field, and that is simply by agreement not to
deal with .solicitors of this type. If the coal men
were to get together on this simple little ques¬
tion it would save all of them some money, and
would mean a little bigger margin of profit on a
good many tons of business.
Other businesses have similar conditions to
contend with, and solve them in the manner in¬
dicated. There is no reason why a coal dealer
should continue to pay a premium for business
which would come to him regularly and normally
without any such payment, and the solicitor who
is going around asking for orders on the basis
that the coal will be delivered by any concern
the customer names, and at the regular price,
is simply taking advantage of a situation which
the dealers themselves are to blame for per¬
mitting to grow up.
Gas Is Dangerous.
Coal dealers who are feeling the competition
of gas for heating purposes — and they are rather
certain to feel it if natural gas is easily available
— should remember that a good argument with
which to offset that concerning ' the cleanliness
and convenience of gas is that use of the latter
is positively, actually and admittedly dangerous.
In one city where hundreds of gas furnaces
have been installed, and just that many con¬
sumers cut off the list of the coal dealers, be¬
cause natural gas is cheap enough to compete
readily with coal, the leading morning paper
carried an item a few weeks ago with this sug¬
gestive headline, spread out in big black type on
the front page :
HURT
BY BLAST
OF FURNACE GAS
V. M.
Smith Thrown Twenty Feet in
Basement Explosion
Wife Faces Danger in Preventing Recur¬
rence of Accident
Victim Confined to Bed
The news item went on to tell about the ex¬
perience of Mr. Smith, who was using gas in¬
stead of coal. He couldn’t get any heat, and
went down to investigate. He used a match to
aid him in the investigation, and the gas which
had accumulated on account of the “pilot light”
going out promptly made itself evident and
slammed Mr. Consumer up against the concrete
foundation of his residence.
It is possible that, owing to the fact that the
gas furnace is already in, and it would involve
trouble and expense to have a change made right
now, the victim of the accident will continue to
burn gas in his furnace. But how about the
hundreds and thousands of readers of the news¬
papers who may have been thinking about putting
in gas equipment? If they are wise, and if the
coal men with whom they deal are sensible
enough to make use of a legitimate argument
which has been put in their hands, they will
hereafter not eVen consider the question of sub¬
stituting gas for coal.
Gas has its advantages, and for cooking pur¬
poses is indispensable in the modern home. The
coal man has conceded this, and isn’t trying to
insist on supplying the fuel for cooking. But
when the gas company invades the realm of
heating, and tries not only to supply coal in
grates, but also in furnaces, it is time for the
coal man to get busy. Such items as that re¬
ferred to are the best possible arguments. “Do
you want to get blown up?” is a question which
the dealer should ask every customer who hints
thta he is planning to substitute gas for coal.
James Kay. trustee in bankruptcy of the Hughes
Creek Coal Company, in Kanawha county. West
Virginia, sold at public auction last week several
lots of coal land on Morris creek along the line
of the Kanawha & Michigan Railway, and in the
Cabin creek district also, together with the lease¬
hold of over three thousand acres from the Kellys
Creek Colliery Company, with all improvements,
fixtures and equipment, mules and live stock and
stores and fixtures, together with a Morgan-Card-
ner locomotive. The purchaser was J. W. Daw¬
son, .general manager of the Kellys Creek Colliery
Company, for himself and others associated with
him. Several mines are situated on the prop¬
erty, two of which will be opened shortly by Mr.
Dawson. These are situated at Hugheston and
five hundred men will be given employment in
them.
414
THE BLACK DIAMOND.
[November 20
px;bi.ished evebt satubdat bt the
BEACK DIAMOND C01ffFAN7.
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Address all communications to
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Saturday, November 20, 1915.
INDEX.
Special Articles.
Page
Why Miners Will Attack Anthracite Companies.... 40.5
(Jetting Rid of Pilots and Cutting Shipping Costs. . 406
Hard Coal Factories . 406
Danger Ahead in Eastern Kail Situation . 407
A Sketch Book on Anthracite Mining . 407
Effect of Proposed Increase . 407
Cost and Revenue of Franklin County Coal . 408
(iovernment Aids American Coal Exporters . 409
October Anthracite Figures . 409
Mine Clearing House . 410
Transmitting Orders to a Distant Coal Yard . 410
The German Coal Situation . 411
International Conference . 411
Soo Canal Traffic . 411
Trade at Para, Brazil . 411
Coal and Coke Rates . 412
Rate on Bunker Coal . 412
Field of the Retailer . 413
Editorial . . 414
News Local to Chicago . 416
Association .News . 416
Facts Which Determine Our Export Prospects . 417
Market Reports.
General Review and Chicago . 418
Pittsburgh, Detroit and Denver . 419
Cincinnati, Twin Cities and St. Louis . 420
Cleveland, Indianapolis and Duluth . 421
New York . 422
Philadelphia and New England . 423
Baltimore, Buffalo, Birmingham and Oklahoma . 424
Hacking Valley . 15
Following the Wrong Line.
Those who have followed coal trade de¬
velopments in recent months must have come
to the conclusion that a bitter triangular
war is being waged with West Virginia on
one side and with Ohio and Pennsylvania
on the other. In the public press and be¬
fore various public boards these men are
the bitterest of antagonists. After the
rumpus is over they usually get together,
as man to man, ami talk it out. For this
latter reason we are not interested so much
in what they say publicly as in what they
say among themselves.
In these private discussions the northern
states admit that if they were in the shoes
of West Virginia they would do exactly as
its operators are doing. West Virginia is
gallant enough to reply by saying that she
would do the same as they are doing, if the
situation were reversed. Then, both of
them come down to the only real point of
all the quarrel.
They admit that they are trying to right
a 'torong condition in the coal trade by mak¬
ing the railroad the scapegoat. They say
that the place to set things right is not in
the railroad rate, but inside the coal trade.
They say that it is no solution of a coal
trade ill to rob the railroads of their revenue.
They admit, as does everyone, that the
whole coal rate fabric is wrong. For that
matter, so do the railroads. Still, they say
that it is no time to start to set that wrong
right when the operators are in a feud over
a wrong condition inside the coal trade.
In every point these men are right. They
are in private taking a position which is as
fundamentally sound and true as their pub¬
lic jiosition is wrong and unsound. It
may be wrong and it is wrong for West
Virginia to have a rate advantage merely
because once upon a time some railroad
officials wanted to make money by building
lines and opening coal lands which they
owned. This system, which was born in
iniquity, cannot endure. One of these days
the whole thing will have to be changed.
But, it is not a proper change merely to
take the advantage away from West Vir¬
ginia and to give it over to Ohio. It is not
a proper change in railroad rates to handi¬
cap new mines that old ones may continue
in existence. It is not a proper change to
hopple mines in a nezu field to offset the
fact that older mines are labor-ridden. That
is, it is not proper to ask the railroads to
shoulder the responsibility of bringing about
any needed readjustment of mining condi¬
tions. That is a thing which the mines
must do themselves and inside the coal
trade. It is neither right nor conscionable
to ask the railroads to do it ; certainly it is
not right to ask the Government to compel
the railroads to do it. Such a thing is giv¬
ing back into railroad hands the very poiver
zohich the nation has tried to snatch from
them during these last fifteen years of trou¬
ble and distress.
Certainly it is not right and proper to
give Ohio this leverage when it is reason¬
ably certain that she will use the new power
only to embroil herself with the western
states in a similar dispute. It is doing no
good to zvhip West Virginia in favor of
Ohio, only to make Ohio defendant in a light
zoith Indiana and Illinois.
Thus while we admit the iniquity of the
whole rate fabric, and while we say that it
must be cleared up some of these days, we
stand firm on the position that it eannot re¬
sult in any good to try to correet a compet¬
itive matter betzveen the mines by a juggling
of the freight rates of the railroads. Even
to try such a thing leaves the wrong condi¬
tion unharmed and starts the coal mines
on a long campaign of pulling and hauling
at rates in a way to involve endless ex¬
pense without getting anywhere. There is
a far better way of getting at the real re¬
sult which is desired but not confessed in
these proceedings.
An Alarming Situation.
Coal men in the east seem to have a
clearer understanding of the position of
the west today than have the western people.
They are genuinely alarmed over the west¬
ern coal situation. This is a lively senti¬
ment, which the western people do not share
in a saving sense. On the contrary, the west¬
ern people are asleep to their own best in¬
terests, and perhaps it is as well so, seeing
it can’t be remedied.
What the eastern people know is that a
strike in the anthracite field is almost in¬
evitable. If it lasts long and proves bitter,
no one would be much surprised. This is
going to cut short the supply of domestic
coal in the we.st, particularly after the first
of April.
.“Mso, the western people have not stored
any coal, to speak of. This fact every
western man appreciates.
With a coming shortage of one grade and
with a lack of storage of all grades, the
west is in a serious position seen from
anv ]ioint of view.
But the eastern people appreciate, also,
that it is going to be impossible to get any
large amounts of coal west. The sugges¬
tion has been made on several occasions to
the larger eastern producers that it would
be a good business move for them to get
coal west — even if they had to rent the
storage space of the retailers — in order to
have it on hand when the big demand comes.
"But,” they say, “we can’t do it. We
have not enough coal to go around in the
east now. We are short of cars to move
the mine output to satisfy existing demand.
We are short of labor — and it is getting
shorter — even though we had the cars. Un¬
der the circumstances, how can we specu¬
late on a possible western demand? We
can’t do it and that is the end of the mat¬
ter.”
And right there the situation rests. The
west is short of coal and is rapidly becom¬
ing short of cars. The east has neither the
cars nor the labor to come to the relief of
the west.
What the east cannot do now will be
increasingly hard to do a month or six
weeks from now. There is a progressive
shortage of cars and of labor. The latter
is particularly severe because the Italians
are going home and the Greeks are about
to go. The railroad situation also becomes
more acute as the cold weather approaches.
The east cannot be depended upon to ship
to the west, for months to come, a pound
more coal than is now being moved. And
the present movement is barely enough to
support the west at a time when the de¬
mand is at a minimum.
The situation, looked at from any angle,
is alarming. In such a dilemma, only one
word of advice can be given, and that is
short : “Get all the coal of any kind that
you can get, and while you can get it. The
time is coming when it will be a precious
commodity.”
Discounting the Future.
These are the days of big things in New
York. One can meet there men of all
shades of optimism. One thing stands out
prominently. Men are plunging headlong
into great undertakings. They are having
big dreams and they are financing those on
a large scale. By the mere act of financing,
however, they are committing themselves
to great programs. They are putting money
into things. Also they are committing
themselves to the need to make that money
pay. Thus the mere fact of financing great
undertakings is a warrant of future activi¬
ties. These big men, committed to these
big things, are not going to be willing to
sit down on their laurels and take their
commissions only to let the financed busi¬
nesses go to pot. America has never done
that. It is not going to do it now.
The steel trade is a first rate example.
Heretofore there was only one great cor¬
poration. Now there are two. Soon there
may be three. These are tied up to ship¬
building companies and all that. These
three big organizations will have to fight for
an existence and for profit. They cannot
get either by fighting each other. To do
that sort of thing is folly. Instead, they
will have to fight for an internal develop¬
ment that will make all three of them pay.
.\ssuming that the latter is the program
most likelv to be followed, it is interesting
to see what are the chances for success.
In the first place, we are going to have a
shortage of labor. To get around that.
No. 21]
THE BLACK DIAMOND.
415
without letting the business of the country
suffer, we are going to need all sorts of
machines and other devices. These are go¬
ing to require steel.
Thus the steel business, to get orders on
which to keep the mills going, will have to
encourage the use of steel and hence the
building of machinery of all sorts. This
in turn is going to give tremendous encour¬
agement to those who want to run their
plants on an efficient and economical basis.
It is going to mean a speeding up of manu¬
facturing programs all along the line, be¬
cause men everywhere will need machines
to take the place of men who are not to be
had.
In one way, we may look at the large
financing of the steel mill consolidations as
a sign of weakness in our American sys¬
tem. But when you come to realize that
we are thus capitalizing our hopes and are
thus planning to make those hopes real, it
can be seen that by one act we are getting
ready for a bigger and busier America.
There is this other thing to be remem¬
bered, too. While we may, at any time,
stop selling war munitions to Europe, we
are not going to stop selling steel. When
the use of steel in war leaves off, the use
of steel for reconstruction will start. The
new program may be separated from the old
by a period of some months, but the newer
period is as inevitable as it is that the war
will end one of these days. Therefore, we
will have need for these steel mills not only
to sell machinery to our people at home, but
to make it for customers abroad.
Everything considered, there is pretty
good reason for this elaborate financing of
the steel mills which is now in progress. If
everything in America were as sound as
that, the country would be in an enviable
position.
The Financial Awakening.
Everyone says that there is a financial
awakening throughout the nation. It
must be true because everyone is talking
about it. Perhaps the same thing can
be said a little differently that will make
it a little more truthful.
The exact fact seems to be that the
banks have more money than they know
what to do with, just yet, in the way of
financing the ordinary processes of busi¬
ness. They have lending power which
is tugging at the bits and wants to be
on the move. But, business itself is not
quite ready to borrow this money and to
employ it in the ordinary, every-day pro¬
cesses of producing and selling things.
Still, the money is there to be loaned and
the banks want to loan it. The only pres¬
ent employment for it is to put it into
some sort of financing — the expression of
business men of the larger plans they
have for the future. So, there is a lot
of money that is going into big financing.
It will come back to the banks after a
while when the people have absorbed the
various stock issues. Then it will be
ready again for duty when the sober busi¬
ness concerns are ready to produce and
sell.
On the other side of the question, the
I)resent borrowers of the money are to
be considered. They have quite inflated
ideas ; indeed, they take themselves very
seriously. They see a future filled with
all sorts of glorious promises. There
arises before the eyes of every man who
has an idea the possibilities of duplicating
some of the big financial successes which
were scored a matter of twelve or fif¬
teen years. Those who dream are dis¬
posed to borrow this idle bank money ;
finance their dreams ; and make great
wonders come true. Some of them are
out for a commission, only ; others are
asking inflated prices for the real things
they have to sell. But from whatever
angle they approach the cpiestion, the
present is one of extravagant notions.
.\nd America, lulled almost to sleep on
such matters by the long period of dull
business, stands between the necessity of
the banks and the dreams of the incipient
financiers. The situation is one which
gives pause to the thoughtful. Such men
wonder how the nation is going to pay
interest on the debt which is thus daily
being created.
Then comes up the one big idea of
them all. America the buoyant — even if
the suffering — is capable of standing-
much. It hasn’t begun yet to reach a
first intimation of the end of its resources
in finance even as the European countries
are finding they have financial strength
far beyond any possible dream. America
the buoyant is going to walk away with
the new load of financing even as it has
done with other loads. We may get a
little more social unrest as a consequence
but what of that.
Getting a Master.
Quite a number of years ago one of
these wishy-washy novels came out. It
devoted about two hundred and fifty
pages to a .commonplace yarn, written in
a dull style. It was zero on literature,
if ever there was such a thing. Still, it
did contain one line that came pretty near
to redeeming the whole book. The prin¬
cipal characters in it were a Kentucky
colonel and a Georgia cracker. The Ken¬
tucky colonel, as customary, had a good-
looking daughter and an equally good-
looking horse. In one scene, the girl was
riding the horse, and the Kentucky colo¬
nel was literally bursting with pride. The
Georgia cracker remarked to this effect :
“I have observed that a woman is just
like a horse. She is not worth a damn
without a man’s hand to guide her.”
It is quite possible to apply that same
point to an individual coal business. It
is not worth very much unless it has a
man who is master of it. That is to say,
without a head and without a master, a
business cannot have a program, and a
1)usiness without a program is nothing.
Precisely the same thing may be said
about an entire industry. An industry
without a head is the same as a business
without a master and a woman without a
man’s hand to guide her. There is no
program, and consequently there is no
trade achievement. Under such condi¬
tions wholesale ruin is usually the lot of
the trade.
Even in a larger sense, you might say
])recisely the same thing about a govern¬
ment. In the final analysis the essential
weakness of ours or any democracy is
that it has and can have no program be¬
cause it has and can have no permanent
head. In a country like ours, where the
head of the government changes every
four years and where, with the head of
the government, the program and the
])olicy also change, we cannot with any
assurance either map out or plan to fol¬
low any definite program.
The claims of those who preach that
the world ultimately is going to become
democratic notwithstanding, we are con¬
vinced that no nation, no industry, and
no individual business will ever get any¬
where until each has a master who is
recognized.
The Old Story.
Louisville, Kentucky, is presenting an
old coal trade story in a new dress. That
story, in a word, is : Pittsburgh coal was
there before Kentucky knew that it had
much if any coal outside of the deposit
in the western part of the state. This
was not comparable in quality to the
Pittsburgh product, and hence the Pitts¬
burgh operators practically dominated
that situation. Then eastern Kentucky
began to open mines. It has coal which
succesfully challenges the Pittsburgh
coal on the score of equality. Incidentally,
there was started a dispute as to which
should control the Louisville situation.
Pittsburgh wanted to remain ; eastern
Kentucky wanted to come in. It prom¬
ised for a while to be a fight to a finish.
Then they composed their differences by
reaching a tentative understanding that
a differential of twenty-five cents a ton
should be e.stablished.
Things ran along this way rather
smoothly for a number of years, or until
eastern Kentucky operators got a mania
for increasing production. As produc¬
tion increased, the need for a market
grew. As the need for a market grew,
the operators and retailers jointly were
tempted to cut prices in Louisville in
order to introduce themselves in their
nearest market. They hoped at some dis¬
tant time to make back the losses inci¬
dent to the campaign of introduction.
Right now that campaigning for an
introduction is at its height. It finds its
first expression in a curious problem of
arithmetic. That problem is that the re¬
tailers in Louisville are offering to sell
eastern Kentucky coal on a margin be¬
tween cost at the yard and selling price
to the householder of thirty cents a ton.
Since the cost of handling is easily ninety
to ninety-five cents a ton or more, the re¬
tailers are doing business at a loss of
sixty to seventy-five cents a ton.
According to figures which have been
compiled by some coal men, the retailers
in Louisville handle about 1,500,000 tons
of coal a year. At a loss of even fifty
cents a ton, this means an annual loss of
$750,000. The question is : “Are the
retailers of Louisville able to lose $750,-
000 a year and still be good credit risks
to the operators who are producing this
coal and pouring it into that center?”
This is not a matter which concerns
r.ouisville, Kentucky, alone. It is, in re¬
ality, the one big problem of the trade.
That problem is to find some way of in¬
troducing new coals — if new coals must
be introduced — without wrecking finan-
ciallv the peo|)le who are asked to intro¬
duce them and the mines which produce
the coal.
Another e.xi)ression of the same problem
is to find some way whereby the retail
coal men can compose their dift'erences
before the loss, rather than after fin.ancial
ruin and bankruptcy have come.
416
THE BLACK DIAMOND
[November 20
News Local to Chicago.
F. S. Peabody returned the latter part of last
week from New York, where he had spent a
week.
George M. Bryant, coal merchant of DePue,
Ill., was a Chicago visitor on Wednesday of this
week.
J. H. Stahl, the principal coal dealer of Somo-
nauk, was a caller on the Chicago trade on Tues¬
day of this week.
John Maher of the Pittsburgh & Ashland Coal
Company, with headquarters at Minneapolis, was
a caller on the Chicago trade the early part of
this week.
Charles V. Hickox, secretary of the Coal Oper¬
ators’ Mutual Fire Insurance Company of Spring-
field, Ill., and an old time coal man, was calling
on his coal trade acquaintances in Chicago this
week.
An explosion of gas at the Buckner mine of
the United Mining Company, November 17, se¬
verely burned four men. The property damage
was slight, the operation of the mine not being
interfered with in any way.
Bob Kernohan, sales manager for the Poca¬
hontas Coal Sales Company, says the best indi¬
cation of the return of prosperity is the in¬
creased demand for coke at much higher prices
than prevailed this time last year.
Complaints of car shortage from alt parts of
the country are increasing. Northwestern roads
have issued orders to prevent their cars from
going east. The Illinois Central operators note
many foreign cars in their daily allotment.
D. W. Buchanan, while speaking of the in¬
crease in the cost of mine supplies, said that the
additional cost charged to production by his
company for the first year of the war was $27,-
548.50, as compared with the previous year.
John T. Connery has joined hands witli J.
J. Corbett in the erection of a million dollar
family hotel at Edgewater, to be called the
Edgewater Beach hotel. It is planned to have
the structure ready for occupancy early in
the summer of 1916.
J. P. Danson, formerly with C. M. Moderwell
& Co., is now manager of the Nelson Coal Com¬
pany of Great Falls, Mont. He was in the lime¬
light in Montana last week, due to his having
secured a reduction from the railroads on screen¬
ings after a long fight.
The latter part of last week C. A. Bickett of
Bickett Coal & Coke Company returned from
about a week spent in New York and left the first
part of this week for a trip into Ohio and Toron¬
to, from which point he returned to Chicago
Wednesday of this week.
E. H. Doyle, manager of the Middle West
Coal Company, Cincinnati, while in Chicago this
week, reported a vigorous demand for steam in
the Queen City. All the machine tool factories
are busy, some working night and day, which,
of course, means a heavy coal consumption.
Samuel Dickson of Hewlett, W. Va., and one of
the pioneer operators of that state, stopped off
in Chicago a day the early part of this week. He
has just returned from an extended trip to Cali¬
fornia and those who talked to him are strongly
of the impression that before long he will be a
factor in the western coal situation again.
W. E. Rothermel has been appointed trustee
for the defunct Mueller Coal Company. He is
expected to collect as much of the $7,000 worth
of assets as possible. As the Mueller Coal Com¬
pany and the receiver have undoubtedly used
their best efforts in this direction it would seem
that Collector Rothermel will need to exercise
considerable ingenuity in his new connection.
John Sterling, who has been connected with the
Big Creek Colliery Company, in charge of the
sales of Petroleum Carbon, has resigned that posi¬
tion to go with the Union Pacific Coal Company.
He has moved his family to Cheyenne, Wyo.,
where he will make his headquarters in future.
For the time being he is on a trip to California,
partly to study the possibilities of the coal mar¬
ket there, and partly to take a short vacation.
On Tuesday night of this week the Woodside
mine of the Woodside Coal Company. Spring-
field, Ill., was burned to the ground. The tipple
was completely destroyed, as were the othef top
works. This puts this mine out of commission
for some time, due to the fact that according to
state laws the new tipple erected in place of the
old one will have to be of steel, and steel is not
easily obtainable just now. This mine was located
on the Wabash railway and had a production of
about 2,000 tons a day. The understanding is that
its contracts have been transferred to some other
mines in the district, which will fill them while
this mine is closed down, and of course, the
other mines will have to make up the shortage in
coal incident to the closing up of this plant.
In September, Chesapeake & Ohio’s coal
tonnage was 2,164,912, compared with 2,006,-
291 last year. In three months ended Sep¬
tember 30, 6,459,319 tons of coal were car¬
ried, against 5,913,603 in the same period last
year, an increase of 545,716 tons. Of the total
tonnage this year twenty-two per cent was
bound to tidewater, compared with seventeen
per cent last year, while sixty-one per cent
was west-bound, against sixty-six per cent last
year.
Complaint against alleged discriminatory rates
on bituminous coal are made by the Reiss Coal
Company, in a proceeding begun before the in¬
terstate commerce commission against the Great
Western and the Northwestern roads at Wash¬
ington November 11. The complaint charges
that the rates on coal from Sheboygan and Mani¬
towoc to certain points in Iowa and Minnesota
are higher without good reason than the rates
from Chicago, and discriminate against Sheboy¬
gan and Manitowoc. John P. Reiss states that
the Reiss Company has joined with other west¬
ern shippers in an effort to secure the same
rate for its coal shipped from Sheboygan over
the Northwestern and Great Western roads as is
granted to shippers of coal from Chicago to
points on these lines.
L. R. Rutter, chairman, has made the following
report, which will prove of wide interest : “The
anthracite committee of the Chicago Coal Mer¬
chants Association met on Nov. 12, 1915, pursu¬
ant to the request of certain members of this
association. The object of said meeting was to
discuss the reasonableness of the existing anthra¬
cite rates to Chicago. Your committee was ap¬
pointed in May, 1914, and appeared before the
Interstate Commerce Commission opposing the
increase of twenty-five cents per ton on anthracite
rates, which the commission subsequently grant¬
ed. There was a further meeting of your com¬
mittee at the association rooms Tuesday morn¬
ing, Nov. 16, 1915, at 10 o’clock, to further con¬
sider the advisability of this association filing a
protest before the Interstate Commerce Commis¬
sion, concerning the reasonableness of the exist¬
ing rates to Chicago on anthracite coal, and their
effect on the trade. The data now in possession
of your committee is not sufficient for them to
take any action.”
James E. Gorman, this week assumed charge
of the operation of the Rock Island road, as
chief executive officer under Receiver Dick¬
inson. Mr. Gorman was born in Chicago
fifty-one years ago, and was educated at the
Holy Eamily School. He entered railroad
service in 1887 for the Chicago, Burlington &
Quincy, his first work being as a car number
taker, the start of so many railroaders. He
continued with that road four years, and left
to engage with the Rock Island road. Four
years later he became clerk in the offices of
the Chicago Lumber Company. He re-en¬
tered railroad service as a clerk for the Chi¬
cago & Northwestern road, and four years
later engaged as chief clerk to the general
freight agent of the Santa Fe system. From
there, he went to the Illinois Central as tariff
clerk, and three years later went back to the
Santa Fe as freight clerk. In 1893, and for
two years thereafter, he was chief clerk for
Joy Morton Company. In 1895, he again
engaged with the Santa Fe as chief clerk in
the freight department. In September, 1895,
he was appointed assistant general freight
agent for the Santa Fe, his first titled office,
then became general freight agent, assistant
traffic manager and freight traffic manager of
the same road. On December 15, 1909, just
twenty-seven years after his first employment
by that road, he re-entered the service of
the Rock Island, this time as vice-president
in charge of traffic.
The Boat Run Coal Company, Arden, W.
Va., has let a contract for improvements to
a 1,500 coal acreage under lease, consisting of
a half mile electric road, building of two tip¬
ples. construction of two mine openings and
placing timber in readiness to begin work.
Members of the Detroit Coal Exchange, at their
regular meeting Thursday evening, received from
Secretary F. E. Reeves a report of the attitude of
the exchan.ge in reference to collection of claims
against the Pere Marquette railroad. There was
discussion also of a plan for installation of a col¬
lection bureau in connection with the exchange.
Association News.
The New England association holds but one
meeting a year, unless there is occasion for an¬
other. District meetings are held occasionally,
whenever it seems likely to get forty or thirty
men together.
The business conditions in New England among
coal dealers depends a great deal upon the loca¬
tion of the man himself. There are several places
where price cutting is going on with consequent
loss in money and loss in credit. We are suffer¬
ing as a whole from what we call irregular ship¬
ments of coal. Anthracite is being shipped direct
to the consumers by individual operators; job¬
bing houses, not only coal jobbers, but iron and
steel jobbers who handle an occasional car for a
favored customer.
In one city of nearly 9,000 inhabitants there has
been nearly 4,000 tons of anthracite coal shipped
direct to consumers without passing through the
hands of the retail dealers for the last five months.
Our federal laws prevent dealers combining
and making such plans to combat such kind of
competition, whereas they make laws advocating
farmers getting together for similar reasons. The
state of Massachusetts supports one of the finest
agricultural colleges in the country, and the coal
dealers pay for it, or pay their share of the cost
in accordance with the system of taxing. One
bit of information sent to farmers by the officers'
of this institution was to tell them where they
can buy carload lots of coal direct from the mine.
New England is like other eastern states in its
consumption of hard coal, probably about 9,000,-
000 tons being consumed annually. For years we
have carried on an educational campaign endeav¬
oring to have the New England retailers keep
accurate cost systems so they may know exactly
where they stand. Progress is very slow, but
the matter is having constant attention.
This association is furnishing illustrated lec¬
tures for boards of trade, business men’s associ¬
ations, church clubs, etc., to enable local mer¬
chants to show the people of their community the
difficulties of anthracite coal production, and some
of the reasons for its increasing cost.
We are strong advocates for coal dealers’ as¬
sociations working with other business men’s
organizations for the benefit thus gained by all
retail merchants. We believe in cooperation
among business men in all lines, regardless of
whether it is coal or groceries.
W. A. Clark, President,
Northampton, Mass.
Small Activities.
Oklahoma News Notes.
D. J. Jorden. president, San Bois Coal Com¬
pany, is at McCurtain this week in the interests
of his mines there.
S. W. Hogan, of Cashion, Okla., has recently
established grain elevators at Prague and Oke-
mah, Okla., and will handle coal at these points.
W. S. Swope has purchased the Erick Coal
Yard from L. M. Smith, at Erick, Okla. Erick
is one of the plains towns in the Texas panhandle
country and although having a population of
a few hundred sells more coal than many towns
ten times its size, owing to their large trade
area, extending as it does fifty miles in some
directions.
The Oklahoma City coal dealers, at the insti¬
gation of Mr. M. B. Schofield of the M. B.
Schofield Company, have arranged a splendid
billboard “burn coal” campaign which is be¬
ginning to show its good effects. Kodaks of
the six billboards they have placed over the city
will be reproduced in this section within a few
weeks, so that other coal dealers who are fighting
gas competition may use the suggestions if de¬
sired.
The Santa Fe Coal Company, of Cherokee,
Okla., owned by O. J. Smith, is making arrange¬
ments to install a large automatic loading storage
plant in connection with his coal business. Mr.
Smith is a coal man, pure and simple. He does
not divide his time with grain or feed, cattle
raising or farming and although he is located in
a little town of 2,500 people, where there are
three competitors, he is making good at the same
time making money and lots of it. If some of
the combination dealers who cry continually.
“There ain’t no money in the coal business,”
would pay Mr. Smith a visit and see his up-to-
date coal handling plant they would probably
change their minds. The visit would do them
good at least.
No. 21]
417
Facts Which Determine Our Export Prospects.
The Export Situation.
Coal exports are still handicapped by lack of
sufficient vessel tonnage. Last week saw approxi¬
mately 100,000 tons exported from Hampton
Roads and 12,668 tons from Baltimore.
It is noticed that there was one schooner sail¬
ing from the Roads for Spain with 4,968 tons and
a Norwegian bark for Rio with 2,588 tons. There
was an Italian bark from Baltimore with 2,000
tons for Italy and a Uruguayian bark from New¬
port News for Buenos Aires, taking 3,532 tons.
Coal is at the moment easy at Hampton Roads,
but very strong at all of the other ports.
It is expected that any moment may find the
Hampton Roads price situation very strong, as
there is a very heavy demand for the southern
coals for shipment to New En.gland and also to
the west. Shipments in both directions have been
restricted because of the lack of cars for inland
shipment and coastwise vessels for coastwise
shipment.
There is a good demand for coal for Cuba and
vessel rates are approximately $3.50, which is
about the rate to the Plate in normal times.
Some of the vessel owners that have been using
oil for fuel are complaining of the recent very
radical advances in oil prices. One steamship
owner who uses oil on a number of his steam¬
ers says that the increase in the price of oil is
costing him $60 per day per steamer more than
was the case several months ago.
The Welsh Coal Situation.
The Cardiff correspondent of the Liverpool
Journal of Commerce, under date of November
5th, writes about the Cardiff situation as fol¬
lows:
“No improvement was shown this week in
the South Wales steam coal trade, and little
can be looked for until tonnage arrives in suf¬
ficient supply for shippers’ needs. The whole
position, in fact, hinges in the question of ton¬
nage, and with no better arrivals the mar¬
ket continued in a lifeless state. Collieries’
difficulties were most pronounced and a good
number failed to keep their pits regularly em¬
ployed owing to the inability to clear wagons.
Values for immediate shipment were extremely
difficult to range, owing to the small amount
of new business passing and the widely dif¬
ferent prices offered owing to the particular
circumstances of sellers. Several were still
offering supplies at substantial reductions in
order to secure a quick release of wagons.
The generally easy position was accentuated
by middlemen who, forced to take their quota
of contract deliveries, undersold collieries to
the extent of 2s per ton or even more. The
prices offering, in fact, were unremunerative
to collieries, which have still to face abnor¬
mally high production costs, and a number
prefer to close their pits temporarily rather
than accept the present low prices. With
colliery workmen’s wages standing at abnor¬
mally high levels, the present prices of coal
available for ordinary commercial purposes
leaves little or no remuneration to the col¬
lieries.
“Much harassed coal operators have de¬
rived some measure of satisfaction from the
fact that the government intends to deal with
the question of the shortage of steamers,
which has reduced the coal export trade to
an exceptional extent. The Board of Trade
does not contemplate requisitioning the en¬
tire British mercantile marine, but a suffi¬
cient number of vessels will be requisitioned,
“where emergency exists at any time in the
market,” whilst powers will be taken “to reg¬
ulate the employment of British shipping in
the carrying of cargo between foreign ports
by means of licenses.” It is expected that
the scheme will give more tonnage for use
in the South Wales coal trade. Some time,
however, must elapse before any appreciable
improvement in the tonnage position is shown
under the scheme, but several colliery owners
were looking forv/ard to steadier conditions
at the end of the month in anticipation of a
better supply of vessels, and the further cur¬
tailment of the output of the coal field owing
to the recruiting which is still going on in
the valleys. There are a number of opera¬
tors, however, who are dubious of any relief
being received from the government scheme.
They point out that a vast amount of tonnage
was engaged, soon after the Greek vessels were
commandeered by the Greek government, to
carry grain from America to this country, the
supply of grain having fallen much below the
THE BLACK DIAMOND.
normal. This pressure will not be continued,
and vessels will be gradually released for
other trades. Besides no scheme can increase
the world’s tonnage. If British vessels are
forced to confine their trading to this coun¬
try, it is argued that the higher freights which
will be shown at foreign ports will drive the
foreign tonnage away from British trades, for
there is still a considerable quantity of for¬
eign tonnage engaged in carrying coals from
Great Britain and grain home. It is sug¬
gested that the government should release
vessels which for some time have been used
as coal hulks by the authorities, whilst it is
also sugested that discharging facilities at the
chief ports should be quickened. The problem
is an acute one, for the Welsh coal export
trade has been restricted to an exceptional
extent owing to the shortage of vessels, and
the restriction of exports means a lessening
of the nation’s credit.”
Quotations on Cardiff coals were as follows: ‘
Admiralty second, 19s-19s 6d; other sorts from
18s-18s 6d : black veins, 19sl9s 6d; smalls,
10s 6d-lls 6d.
Palermo, Italy.
Mr. Samuel H. Shaul, American consul at
Palermo, Italy, writes The Bl.\ck Diamond under
date of October 19 as follows:
"I be.g to inform you that according to a lead¬
ing coal importer in Palermo, the coal consump¬
tion at present is limited, being estimated at twen¬
ty-five per cent of the normal consumption. This
is, of course, due to the war, in fact a number
of factories are not working and others have re¬
stricted work either for financial reasons or lack
of hands. In view of the high price of coal,
some firms have substituted electric for their
steam motors. The coal trade has been pro¬
gressively declinin.g since the war started and
conditions at present do not point to any im¬
provement.
“Prices for American or Welsh coals at pres¬
ent are given at ninety to ninety-two lire, depre¬
ciated currency (about $15) for gas and 100 to 105
lire (about $17) for steam, per ton c. i..f. Pal¬
ermo. These are the highest prices which have
prevailed during the war. Before Au.gust 1, 1914,
prices were: Newcastle, $5.60; Cardiff, $6.80.
“The dealers in Palermo are of small im¬
portance and they do not keep statistics of
prices. You can get such statistics in Genoa,
which is the Italian center for coal trade. Like¬
wise, it is. not possible to secure statistics show¬
ing importations of coal.
“No improvements have been made to the
docks during the past year.”
Coal in Greece.
John E. Kebe, American consul at Saloniki,
Greece, writes The Black Diamond under date
of October 18 as follows : “The immediate effect
of the European war upon the Saloniki coal mar¬
ket was the severance of the German and Belgian
sources of supply, and later on that of Turkey,
from which this city drew a lar.ge supply of a
cheap inferior grade coal. It is estimated by local
coal importers that increased prices and depres¬
sion of business in the few manufacturing con¬
cerns operated in this district have reduced the
local imports of coal thirty per cent since .Au¬
gust 1, 1914.
“Wood, coal and charcoal are commonly used
for heating purposes in this city; but coal is re¬
quired by breweries, hotels and a few manufac¬
turing establishments in this district. The local
importation of coal during the years 1913 and
1914 and an estimate of the amounts supplied
by the contributing countries is shown by the fol¬
lowing figures expressed in metric tons of 2,204.6
pounds each :
1913. 1914.
From England . 17,000 tons 19,000 tons
From Turkey . 17,000 tons 15,000 tons
From Germany . 7,000 tons 4,000 tons
From Belgium . 2,300 tons 1,000 tons
“Local importers estimate that during the first
si.x months of the year 1915, 12,000 tons of Eng¬
lish coal and 2,000 tons of American coal were
imported at this port. It is thou.ght that the pres¬
ent supply of coal in Saloniki will only be suffi¬
cient to supply the demand for four months, or
less, if unforeseen demands are made upon it by
ships or other factors. The Hellenic government
has prohibited the export of coal without special
permission.
“On August 1, 1914, coal prices were as fol¬
lows: English coal, $10.40 per ton; Turkish coal,
$4.90 per ton; German coal, $6.20 per ton; Bel¬
gian coal, $6.20 per ton. The above prices are
quoted c. i. f. Saloniki. What little English and
American coal that now reaches this market
brin.gs a price of $17 c. i. f. Saloniki.”
Coal Trade of Sweden.
Ernest L. Harris, American consul-general at
Stockholm, Sweden, writes The Black Diamond
under date of October 20 as follows :
“I be.g to inform you that owing to the gen¬
eral European war, there has been a reduction
in the consumption of coal in this country, at¬
tended at the same time by an increased de¬
mand for American coal. As an example of
this, a great many of the coasting steamers in the
Swedish merchant service are using wood instead
of coal.
“As a rough estimate, I would place the amount
of American coal imported since the beginning
of the war at about 300,000 tons. More than
this has been contracted for and will be delivered
during next year. This includes all sales of
American coal to the State Railways, gas works
and private industrial enterprises.
“It is also reported that a cargo of American
anthracite has just reached Sweden. The pres¬
ent price of coal fluctuates so from week to week
that it is impossible to give a .general average,
but it runs anywhere between forty-nine and fifty
shillings a ton. The price of German coal at
present is forty-four crowns or $11.79 per ton
c. i. f. Stockholm. No Welsh coal has been
imported since the outbreak of the war.”
Foreign Freight Rates.
W. W. Battie & Co., Produce Exchange,
New York, report as follows under date of
November 15:
The freight market continues to advance
and conditions are practically the same as
a week ago. The last charters for coals from
United States ports to Lower Plate ports,
were at 45s 8d, 500 tons per day discharge and
steamers are difficult to obtain even on these
terms. Shippers of Mediterranean coal are
not willing to pay rates owners ask, conse¬
quently no chartering is being effected for
the movement of coal in this direction. The
tonnage scarcity is making it difficult to oper¬
ate on West Indian orders.
We would quote freight rates on coal by
steamer as follows:
We<;t coast of Italy, 70s to 75s; Marseilles, 65s to 75s;
Barcelona or other good Spanish ports, 65s to 73s (Span¬
ish dues for account of cargo).
Note. — Charters for Italy, France and Spain read:
“Lay days to commence on steamer’s arrival at or off
port of discharge, Is per net register ton per day de¬
murrage.”
Montevideo, about 45s, 500 discharge; Buenos Aires or
La Plata, about 45s, 500 discharge; Rosario, about 50s;
Rio de Janeiro, about 45s, 500 discharge; Santos, 46s to
48s (consignees paying docas dues).
Valparaiso or Callao, $11 to $12; Havana, $2.75 to $3;
Cardenas or Sagua, $3 to $3.25; Cienfuegos, $3 to $3.50;
Fort of Spain. Trinidad, $4 to $4.25; St. Lucia, $3.75 to
$4.25; St. Thomas, $3.50 to $3.75; Barbados, $4 to
$4.25; Kingston, $3.25 to $3.75; Curacao, about $3.75
and p. c.; Santiago, about $3.50; Guantanamo, about
$3.50; Demerara, $6 to $6.50; Bermuda, about $3.50; Vera
Cruz, $5 to $6.00; Tampico, $5 to $6.
Baltimore October Exports.
The official statement of bituminous coal
exports from the port of Baltimore for the
month of October shows as follows:
Country — Tons.
Italy . 58,522
Spain . 3,107
Sweden . 32,239
Cuba . 26,548
French West Indies . 3,247
Argentina . 8,105
Dutch Guiana . 849
Egypt . 7,035
Total . 139,652
Recent Coal Freight Charters.
Steamer Vindeggen (Swed.), Baltimore to Sweden,
coal, p. t.
Bark Siam (Nor.), Newport News to Buenos Aires,
coal, $8.
Schooner Daylight, Philadelphia to Fort de France,
coal, p. t.
Schooner Edward H. Blake, Virginia to Bermuda, coal,
$3.25.
Steamer Sonora (Mex.), Philadelphia to Cienfuegos,
coal, p. t.
Ship Andreta (Ital.) and bark Gaspara S. (Ital.),
Philadelphia to Mediterranean, coal, p. t.
Schooner J. Edward Drake, Philadelphia to Marti-
ninue, coal, $3.50.
Schooner J. W. F.uwell, Philadelphia to Rosario, coal,
p. t.
Steamer Sif (Nor.), Newport News to St. Lucia, coal,
p. t., “Prompt.’*
The Island Creek Coal Company produced 196,-
000 tons of coal in October, 214,110 tons were
turned out in September and 175,323 tons in Octo¬
ber, 1914.
418
THE BLACK DIAMOND
[November 20
General Review.
Chicago Market.
Steam Coal Is Booming, Coke Production
Increases and Domestic Demand
Is Better.
Screenings Are Strong, Rising Ten to
Fifteen Cents a Ton — Domestic
Coal Is Easy.
The demand for coal has advaneed to a point
where the operators are no longer concerned
about keeping the mines running, but they are
beginning to he concerned over being able to
su])ply all the calls for coal in the ne.xt six
months. This is a complete reversal of condi¬
tions existing a montli or six weeks ago.
The first reason for this change is the sudden
cpiickening of activity in business, principally in
the eastern territory. Up until a month ago there
was a fictitious Inisincss activity all through the
east beginning with Pittsburgh. This rested on
nothing more substantial than orders for war
munitions. While very large producing units
were busy, the businesses which usually move
along in their train were not busy and conse-
(jiiently we only had a quarter to one-half of
prosperity. In the last month, factories which
serve home needs have also begun to get orders
from home sources.
In addition, the car shortage which has been
threatening all through the United States for
month has become a reality east of Pittsburgh.
It is especially severe in mining regions. Coal
companies are finding themselves in a position
where with orders on the books they cannot
get cars enough to fill them.
The mines are also annoyed by' a growing
shortage of labor. The mines are forced to
increase production and some new mines are
being opened, but no new supply of mine labor
has been received from abroad for some time.
I'urther, losses of Italians and more recently of
the Greeks have been quite heavy in the mining
field, one operator estimating his loss as twenty-
five per cent. Thus the mines are confronted by
an ever increasing demand for steam coal and
by, at the same time, a shortage of both cars
and labor.
Seeing that there is no likelihood of a change,
especially in the- labor situation, and seeing that
one big strike at least is sure for next spring,
the operators are already figuring their future
price programs with larger ideas than they have
held lately. Rig contracts carrying an increase
in price of twenty-five to thirty cents a ton liave
been refused within the last ten days.
In the Pittsburgh district the coal situation is
growing rather intense. The steel mills now
are demanding quite a great deal of coke and
with i)rices for the foundry grade fixed at about
$3 a ton for next year’s business, the operators
are increasing the production as fast as car and
labor supply will permit. This, however, is not
very fast. Of course the larger demand for coke
makes a bi.g demand for coal which is pieced
out to some extent hy larger Inlying by the
railroads.
In the upper lake territory the coal men are
showing some alarm over the situation. The
season is drawing rapidly to a close and will
probably end about the first of December. .\t
the same time reports from the head of the
lakes indicate that the movement off of the
docks is already far heavier than the lake move¬
ment and storage piles are beginning to show
the drain. With the continuation of this de¬
mand until the first of April it is said the docks
will be about bare of coal, with very little chance
to get a fresh supply because there will be a
bigger demand for ore boats than coal boats
w'hen navigation opens.
In the western interior there has been some
talk of buying by the railroads in anticipation
of the strike of the- miners next spring. As far
as can be learned the railroads are getting un¬
easy about their supply, but have not yet begun
to buy for storage purposes. One or two in¬
consequential purchases have been made, but they
do not carry a suggestion of a program.
■•Ml over the country the demand for domestic
coals this last week has been much heavier, due
to a sudden drop in the temperature. The
weather so far has not been cold, but is some¬
what cooler than it was last week. This speeded
up demand for anthracite in the east and in the
west created enough demand for bituminous to
clean up the accumulation of coal which had
been rather annoying and large. The indications
are that the west is coming to the point where
it will soon express the same strength in the
bituminous market that is shown in the east
both on steam and domestic sizes. As a matter
of fact, within the week the demand for fine
coal in the west grew so rapidly that screenings’
[irices were marked up ten cents a ton.
Office of The Black Diamond,
Chicago, November 18.
A few days of fairly cold weather have done
wonders for the domestic trade, reversing com¬
pletely the attitude of producers towards the
market. In the meanwhile, the improvement
in steam business and something of smaller
production of lump have changed the tone of
screenings, advancing prices there a minimum
of ten and in some places fifteen cents a ton.
There has been quite a good deal of talk
of buying of coal by railroads for storage pur¬
poses. It has been published broadcast that
the railroads generally were buying and that
the reason therefor was that the railroads
wished to prepare themselves for the strike of
the coal miners which they believe is sure to
come on the first of next April. These re¬
ports, while in circulation generally, have to
be taken with a grain of salt. One railway did
buy too cars and another railwaj^ some time
ago did put down 100,000 tons. The former
order was within the last week, the latter order
was placed three months ago. Further than
that, no storage buying of any consequence is
taking place.
Studying the market in detail, Franklin
county is occupying an interesting position.
If one would judge the market by a few odd
cars that have to be disposed of from time to
time, he would come to the conclusion that the
market is weak. Some of these few cars
are sold in Chicago at off prices. Some of
them are sold in other places where they have
to be sacrificed in order to move them. How¬
ever, if one disregards the few odds and ends
of coal left at the end of the day, and studies
it more from the standpoint of the volume of
husiness that is moving, over the whole ter¬
ritory, he comes to the conclusion that the
last few days have strengthened the market
up to about circular price of $1.75 for lump,
egg, and number one nut. That is quite a
change from conditions a week ago. Then
most of the producers had much coal to sell
and the market was variable in spots. One or
two cold days have quickly cleared up accu¬
mulations and brought supply and demand
about to a balance. This demonstrates again
that the market this year is a weather mar¬
ket, with the weather for the minute in favor
of the operator. Screenings prices have
strengthened pretty generally. The minimum
price anywhere is sixty cents even on odd lots
held over from the previous day’s run. Recent
reports indicate that all accumulations ha,ve
been cleaned up with not to exceed twelve or
fifteen cars unsold in the whole southern field
at the end of any one day. From a minimum
price of sixty cents, quotations range all the
way up to seventy-five cents.
Franklin County —
r.iimp .
Fgg .
Xo. 1 nut .
X'o. 2 nut .
Mine run .
■-’-inen scree, lings. . .
F. O. B.
Chicago.
$2.80
2.5.'i@2.86
2.70@2.S0
2.55
2.15@2.20
1.05@1.75
F. O. B.
Mines.
$1.75
1.50@1.75
1.65@1.76
1.50
1.10@1.15
.00® .70
In Williamson county the fine coal situa¬
tion has been cleaned up in the last few days
and now the minimum price is sixty cents,
with prices ranging all the way up to seventy-
five cents. Consumption is evidently heavier.
The domestic sizes are in fair position, every¬
thing considered; better grades of lump, egg
and number one washed are selling for $1.75.
Some other coals are still selling for $1.60 and
a few odd lots now and then are selling for
$1.50. Prices up to Thursday were:
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
I.ump . $2.65@2.80 $1.60@1.75
F.gg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county mines have been running a
little fuller time this week because the weather
has warranted a production of more domestic
coal and because the demand for fine coal is
improving. Screenings have been advanced to
a minimum of sixty cents, with higher prices
quoted. On sales within the last two or three
(lays, the quotation on the domestic sizes was
$1..')0 to $1.75. Prices up to Thursday were:
Saline County —
Lump .
.Mine run .
F. O. B.
Chicago.
;2.fi5(®2.80
2.20
F. O. B.
Mines.
$1.60@1.75
1.15
Screenings . 1.65@1.75 .60@ .70
ll<j-inch lump . 2.35 1.30
In the central Illinois field an order by the
-Alton Railway for 100 carloads of lump coal
f(pr storage purposes helped out the domestic
situation. The burning on Tuesday night of
the Woodstock mine also shortened the supply
Cooler weather came to the relief of the opera¬
tors and this, with a better demand for screen¬
ings, helped the market materially. Screen¬
ings are now sixty cents as a minimum and
Sangamon county lunq) coal is held pretty firm at
$1.75. Prices up to Thursday were:
Central Illinois —
I.ump . .
Fgg .
N ut .
.Mine run .
Screenings .
F. p. B.
Chicago.
$2.57
2.32@2.47
2.47
1.87
1.42
F. O. B.
Mines.
$1.75
1.50(®1.65
1.65
1.05
.60
Clinton, Indiana, operators are having a
slightly better demand for domestic coal and
an improved market for screenings. Prices
up to Thursday were:
F. O. B. F. O. B.
Clinton — Chicago. Mines.
X’o. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.35
No. 5 and 6 mine run . 1.87 1.10
No. 5 and 6 screenings . 1.52 .75
The Knox county situation is virtually un¬
changed from what it was last week. That is,
the steam demand is taking up most of the
product of the mines, helped along by some
railroad orders.
Prices up to Thursday
were ;
F. O. B. F.
0. B.
Knox County —
Chicago. Mines.
Lump .
. $2.37
$1.50
Egg .
. 2.37
1.50
Mine run .
. 1.87
1.05
Screenings .
. 1.52
.65
Those who look at the anthracite situation
in a broad way appreciate that the market is
full of danger for the buyer and contains satis¬
factory conditions for the producer. However,
none of the technical strength of the market
is reflected in current buying. Last week the
trade was flat; this week it is improved just a
little on account of the weather.
The smokeless situation is just barely steady
as far as mine run is concerned. Retailers
are not buying and even with a very small car
supply at the mines, shipments are heavier
than the market readily can absorb. The lump
and egg market has been decidedly weak; some
sales have been made as low as $1.50 and
plenty of coal could be had for $1.75.
Somerset county operators have more de¬
mand for mine run coal than they have car
supply or labor and are not moving much of
it west. That market therefore is firm. Do¬
mestic sizes, however, are rather easy with this
week’s prices quoted all the way from $1.50
to $2.00. The prices up to Thursday were:
F. O. B. F. O. B.
vSomerset County — Chicago. Mines.
Mine run . $3.45 1.40
Lump and egg . 3.55@4.05 1..50@2.00
The accumulation of Hocking coal that was
on this market last week has been cleaned up.
While that had to be taken care of prices went
down as low as $1.35. Now that that accumu¬
lation is out of the way, prices have rallied to
$1.75 and are fairly firm. The market up to
Thursday was:
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.15@3.25 $1.50@1.60
The Splint market all told has been in good
position even during the recent depression.
The eastern demand accounts for most of this
strength. The prices today range from $1.50
to $1.60, the fluctuation being on quality.
Prices up to Thursday were:
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
iG-inch lump . $3.40@3.50 $1.50@1.60
Eastern Kentucky operators are beginning
to get behind on orders again because this
week the demand has improved with the
slight change in the weather. The market up
to Thursday was:
F. p. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Djinestic lump . $3.80@4.15 $1.90®2.25
Hgg . . 3.25@3.75 1.35@1.85
Foundry coke prices are steady to stronger
at .$5.50 to $5.75. The prospects are that next
year’s business will be done as it is being done,
on the basis of about $5.50. The domestic sizes
of by-product coke are just about steady at
$4.75. Gas house is about firm at $4.00. The
prices up to Thursday were:
r . O . B .
Coke— Chicago.
ConneBsville . ?5.5fl
By-product, foundry . "-Je
By-product, egg and stove .
By-product, nut .
Gas house .
No. 21]
THE BLACK DIAMOND
419
Pittsburgh Trade.
Business Is Not Quite So Brisk for the
Week, But Prices Are Holding
Quite Firm.
office of Thk I’.LACK Di.\MON1),
1502 Oliver Building,
PiTT.snuKUH, P.\., November 18.
What might Ite called a “lull” in the gen¬
eral trade, seems to be the only direct feature
of note, regarding the coal business of this
district the past week. Less activity is noted
than for some time past, though there is no
appearance of a slump, prices holding firm.
Owing to the lower prices at which contracts
were made months ago, consumers have been •
specifying against their full tonnages even
though producers will not be able to ship in¬
side the contract period. In some instances,
producers have entirely withdrawn from the
market, for the remainder of the year.
The past three months have witnessed a re¬
markable growth in the tonnages of iron and
steel products in this district, to say nothing
of coal and coke, moving over the thorough¬
fares of trade, and the equipment famine,
which eased up somewhat the past week, is
still felt and may become acute again at any
time, unless with the anticipated close of lake
navigation now approaching — shipments in
that direction are ceasing to a large extent —
may release large numbers of cars. The near
approach of this factor possibly accounts for
the slight lull in the trade now noticed. Buy¬
ers for December and the turn of the year
possibly expect a decline in prices to result
therefrom. Many operators look for a less
active month for December, and more free
coal, but others insist that the demand will
be maintained. They base their opinions on
the heavy demand for export on the West Vir¬
ginia output, which will cause an increased call
on the Pittsburgh district for home consump¬
tion. The Pittsburgh Dispatch is responsible
for the following;
“A local business man, who has just returned
from an extensive trip through New England,
remarked yesterday that manufacturers in that
part of the country are very apprehensive of
a coal famine, due to a shortage of coal cars.
He said that he was present when a large man¬
ufacturer in Boston gave an order for 50,000
tons of Pennsylvania coal at $4 a ton and
was glad to pay the price, because in paying it
lie was assured a reasonable delivery, some¬
thing which he was not able to obtain re¬
cently.”
The general range of quotations still show
a wide variation, dependent upon individual
operating conditions, and under these cir¬
cumstances it is difficult to quote flat prices,
but the following range about represents the
coal market of this district, f. o. b. mines, for
November shipment:
Block lump, domestic . $1.60
Domestic lump . 1.45
'I'hree-quarters lump, steam or domestic . 1.30
Kun of mine . 1.20
I'/i-inch nut . 1.20
Slack . 95
As a result of the rains the past week, the
three rivers were rising slowly last night and
all indications point towards a packet stage
here tomorrow morning and perhaps a coal
barge stage. The river front presented a
far different aspect than that which has ex¬
isted for the past ten days because of low
water. The river coal companies are not load¬
ing much coal, however, for river shipments,
l)Ut are busy making rail shipments to the
lake trade and interior points, and even should
a sufficient rise occur in the near future, there
is little probability of any large water ship¬
ments to the south.
The Monongahela River Consolidated Coal
& Coke Company has several tow boats and
many barges in the Kanawha river, making
ready for a shipment south from that point
on the first rise. They also sent crews to
the towboats Tom Dodsworth, at Warwood,
W. Va., and the Charles Brown, at Clarington,
O., to bring the towboats and their empties
to this port.
Should a coal shipping stage develop the
Diamond Coal & Coke Company probably will
send the towboat R. Budd out with a small
tow.
The towboat Harry Brown, one of tbe
largest vessels of the Monongahela River Con¬
solidated Coal & Coke Company, sank in the
Mississippi river, near Osceola, Ark., Monday
night, when she struck a snag. She v.'as on
her way with a tow of empties from New
( )rleans. La., to Louisville, Ky.
The coke market has shown a decided weak¬
ness the past week, spot furnace dropping from
previous quotations of .'i!2.40 to $2.75, to $2.25,
and purchases have been made at even less.
One large furnace interest stated this morning
that they were offered coke at $2.10 and that
sales had l)een made at $2.15. The sudden
spurt of a couple of weeks past, it seems, was
largely due to the demands of the Youngstown
Sheet & Tube Company for a large amount of
prompt coke — that with some other interests
coming into the market, jumped the prices up
— and they dropped as quickly when these in¬
terests were supplied. General conditions have
not changed — and the market is just as apt to
advance within the ne.xt seventy-two hours as
it was to drop. Labor conditions have not
improved in the coke centers, and while large
producers are sold upon contracts, there are
smaller ones that are not in touch with “big
l)usiness” that have small car lots to be sold at
any time, and sell for what they can get. The
week’s production will be about normal, and
the demand on contracts increases daily. Quo¬
tations today might be made as follows;
Prompt furnace . $2.15@2.25
Contract furnace, first half . 2.25@2..35
Prompt foundrv . 3.00@3.25
Contract foundry . 3.00@3.25
with some producers of old basin Connells-
ville coke holding for 25c per ton over these
figures.
The winter meeting of the Coal Mining In¬
stitute of America will take place at the Fort
Pitt Hotel, this city, December 21, 22, 23, and
the executive committee have their program
already completed. The meeting promises to
be one of unusual interest, judging from the
list of subjects to be discussed, and the names
of the speakers that appear.
Pittsburgh News Items.
Thomas Adams, president of the Norton
Iron Works, Ashland, Ky., has purchased
twenty-eight acres of land along the river
front, and it is announced a by-product coking
plant to cost between $20(),(»00 and $300,000
will be erected on the site.
The Riter-Conley Manufacturing Company,
Pittsburgh, has received an order for design¬
ing and fabricating the plate material for two
450-ton blast furnaces to be erected by the,
Han Yeh Ping Iron, Coal & Coke Company,
Shanghai, China. About 3,000 tons of plates
will be used.
Rumors that the Warner-Leonard Coal Com¬
pany of Cleveland, Ohio, will open up a coal
mine a few miles back of Charleroi, Pa., at
coal acreage already owned are being given
some circulation. However, it is not stated
that operations will be started immediately,
but that work will begin next spring.
J. Ray Quinn, who for the last six years
has been in the employ of the Central Fair¬
mont Coal Company of Clarksburg, acting as
district salesman for the last few years, re¬
signed and has accepted a position as manager
of the Gano-Moore Coal Company. Mr. Quinn
has been engaged in the coal business for
eight years, the largest part of the time being
with the Central Fairmont Company. For
a time he held a responsible position with
the Calvert Coal Company in its eastern field.
Detroit Trade.
Detroit, Mich., November 18. — (Special Cor¬
respondence.) — With temperature ranging closely
around freezing this week a rather stronger de¬
mand is developing for domestic coals in the
Detroit market, while business in steam coal con¬
tinues to lag behind what shippers say should be
a normal volume.
Inquiry in the steam coal trade is more active
for fine coal than for the larger sizes, though the
consumption of the latter seems to be holding an
equitable proportion to the fine coals. In a few
instances shippers have had a little difficulty get¬
ting fine coal promptly, but the situation has not
been productive of much complaint.
Very little trouble is being experienced just
now from the sale of shipments of consignment
coal. There is apparently a material reduction in
the amount of such stock coming into the city
and sales at prices, showing a wide discount from
mine quotations are more infrequent than they
have been, although bargain hunters, who are able
to wait and watch are still able at times to buy at
prices 20 or 25 cents below the market.
Delivery of shipments is being made with a
reasonable degree of promptness. The termina¬
tion of the strike by clerks of the Michigan Cen¬
tral railroad has contributed in improving the
movement of freight over that company’s lines,
which was attended with some uncertainty, while
the strike was in progress. Complaints concern¬
ing lack of cars continue to come from mining
sections served by the B. & O., the C. & O. and
parts of the Pennsylvania system, but conditions
iia\e not arrived at a stage where the car short¬
age is acute or is causing trouble for coal users.
The buying of domestic sizes is perceptibly
improved by the frosty weather, so far as the
retail dealers are concerned. Their stock, how¬
ever, seems to be holding out to an extent that
relieves most of them of the present necessity of
placing renewal orders, as shippers say they are
receiving very little new business.
Practically a similar situation exists in the
anthracite trade. Deliveries to consumers are
stimulated, but the improvement in retail trade
has not been carried in very large proportion to
the shippers.
Shipments over the rail-lake route seem to be
chiefly for ports on Lake Superior. There is a
somewhat larger movement than was expected.
Shippers are finding it difficult to get vessels to
handle shipments to Lake Michigan docks and
on some business placed this week a rate of 60
cents from Buffalo to
Milwaukee is being paid.
Prices in the local
market on mine
shipment
orders are as follows :
F. O. 15.
F. O. B.
West Virginia Uas —
Mines.
Detroit.
Three-quarter lump .
. $1.00
$2.40
Mine run .
2.30
Slack .
2.00®2.15
West Virginia Splint —
rour-inch lump .
. 1.45@1.75
2.85@3.15
Two-inch lump .
2.C0@2.80
Three-quarter .
2.50
Mine run .
2.30
Nut, pea and slack .
1.95@2.05
Smokeless —
Lump and egg .
. 2.25
3.85
Nut .
3.35
Slack . . .
Open
Mine run .
3.00
Kentucky Splint —
Lump .
3.15@3.40
Egg .
. 1.25@1.40
2.65@2.80
Nut, pea and slack .
. .65
2.05
Fairmount —
Three-quarter steam lump.
. 85@ .95
2.25@2.36
Mine run .
2.10@2.20
Slack .
\Open
Hocking Valley —
Shaker three-inch lunp...
. 1.75
2.90
Shaker egg and nut .
. 1.15
2.30
Domestic lump .
. 1.50
2.65
1 hree-quarter lump .
. 1.35
2.40
Mine run . .
2.15(®2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
. 1.05
2.20
Mine run .
. .95
2.10
Slack .
Open
Jackson Hill —
Domestic lump .
. 2.50
3.65
Cambridge —
Three-quarter lump .
. 1.20
2.35
Mine run .
. 1.10
2.25
Pomeroy —
Two and three-inch lump. .
. 1.60
2.75
Egg .
. 1.35
2.50
Slack .
Open
Denver Trade.
Denver, November 18. — (Special Correspond¬
ence.) — Decidedly lower temperatures for part
of this week have gingered up the coal Inisiness
in this section very materially. The week was
ushered in with a half-inch snow blanket and the
thermometer hung around the freezing point dur¬
ing the first half of the week. As a result, a fair
retail business suddenly developed into a rush and
dealers were well pleased with the increase in
orders.
Operators in the several districts report very
satisfactory gains in tonnage as compared with
last week. For the first time this season the lig¬
nite mines reached an output almost to full ca¬
pacity. With the cold nights now prevailing the
increase will probably be pretty well maintained.
Trinidad mines and several in the Walsenburg
district are behind on orders from country deal¬
ers. The country business is better now than at
any time since the opening of the season, espe¬
cially from those who placed lighi storage orders.
iMuch of this business is for Routt county grades,
and all of those mines are working full time. The
Canon City output will run in excess of 40 per
cent of normal, 'v
Colder weatlux-lA greatly stimulated the de¬
mand for both lignite and bituminous slack, and
the available supply seems to be well taken.
Prices are very firm, considering the possibility
of a small surplus of both grades being expected.
Prices for lignite coal f. o. b. mines are un¬
changed. The quotations ruling are ; For Den¬
ver delivery, lump, $2.35 to $2.65; mine run, $1.50
to $1.65; slack, $1.0.5 to $1.25. For points outside
of Denver, lump, $2,50; mine run, $1.55 to $1.65;
slack, $1,05.
420
[November 20
THE BLACK DIAMOND.
Cincinnati Trade.
Cincinnati, Ohio, November IS— {Sj^ccial
Corresl>ondeiice.) — Since the market is but a
weather affair now, in .general, the week has
brought quite an activity to the demand for coal
for domestic purposes. Dealers who last week
refused to talk to salesmen about ordering coal
are now paying telegraph and telephone tolls to
place orders. Operators have had in one day
more tele.grams and telephone messages than
they had received all year previously.
The fine weather recently caused somewhat of
a softening of smokeless coal. Lump and egg
were soft, but there was a fair demand for nut.
This softening of demand was still extant in
the middle of the week, notwithstanding the cold
weather. It was reported that the price softened
also in some quarters to $2, and in one case, at
least, to $1.90, but the majority of operators held
up to $2.25.
Splint did not suffer, even m the domestic
market, probably owiag to the fact that there had
been little storing of domestic sizes. They did not
take time to haggle about the price or terms, but
devoted their energies to pushing delivery at cir¬
cular, beiag able to command good prices from
their patrons.
The best thing the splint dealers and operators
noted in the week was the fact that there was
a continued increase in demand for steam coal,
not because of the slackening demand for do¬
mestic sizes, but because ovens, steel, and other
manufacturing plants wanted more coal. They
said they could have sold many more cars of
steam coal than they dared take orders for.
As yet there is not much increase in price of
the various coals of the district. Cinderella coal
is held well up, three and one-half-inch block
selling readily, f. o. b. at the mines, at $1.90 to
$2.00; eg.g, $1.50 to $1.60; nut, $1.30 to $1.40; nut
and slack, eighty cents. The stearn demand for
this coal and for Pocahontas steam is very strong,
with nut and egg in the Cinderella rapidly ap-
proachiag premium prices. Splint mine run in
most of the West Virginia sections commands
$1.00, and in Kentucky it is strong at $1.10 to
$1.20. In Kentucky the average price is up, four-
inch' block being now quoted at $1.85 to $2.05;
four-inch mine run, ninety-five cents ; nut and
slack, fifty-five to sixty-five cents; better ,grade,
seventy to seventy-five cents ; egg in better de¬
mand at $1.50 to $1.60. Some of these prices are
not general, but the most of them are. Eg,g has
not been in good demand and operators run it
into mine run and are wary of manufacturing
much of it, unless under direct order.
Operators and dealers are predictin,g premium
prices for all grades of coal before thirty days
shall have passed, and by January ls_t they be¬
lieve unprecedented demand will arise in all
grades, and that they will at last be on “Easy
Street.”
Cincinnati Trade Notes.
The Campbell's Creek Coal Company has estab¬
lished a new harbor on the Kentucky side of the
Ohio river, across from its old harbor, and last
week towed its barges across from the foot of
Niagara street to Ludlow, where the new harbor
is located. The company has established ice¬
breakers and other equipment to protect its equip¬
ment from ice and high water.
The convention of the Ohio River Improvement
Association was held in Cincinnati this week.
Coal men were prominent in its deliberations.
Cincinnati coal men, delegates to the convention,
were Captain Oscar F. Barrett, R. P. Gillham,
C. R. Moriarty and Edward Schonebaum. The
convention pronounced strongly for increased ap¬
propriations to complete the canalization of the
Ohio river and to carry on improvements al¬
ready begun.
It was announced this week that the E. L. Stern-
ber.ger Coal Company has contracted for the sell¬
ing end of the Eastern Kentucky Coal Company,
having mines at Torch Light, Ky., on the Big
Sandy division of the C. & O. Railway. The
company mines the well-known “Torch Light”
block coal. The production is lar,ge and is a
strong reinforcement of the products of the
Sternberger mines across the mountains in West
Virginia, near Williamson. The contract was
entered into November 1st, but was not an¬
nounced until this week.
Pam & Ilurd of Chicago, it is understood, are
now at the head of the syndicate which is to
take over the properties of the Marmet Coal
Company of this city and other West Virginia
properties to form a lar,ge working operation to
develop and dispose of large tonnages of the
splint coal of the region. The Marmet company
is in receivership, but the court has extended
the time for the sale of the property to coincide
with arrangements by which Receivers Poysell
and Marmet and their attorney, Adam Kramer,
will turn over the entire Marmet plant, property,
a railroad and a river outfit, consisting of steam
tugs and barges. It is believed here by those
most closely connected with the interests that the
transfer of property and the organization of the
new corporation will take place about the first
week in February. There will be common and
preferred stock issues, and also a bond issue,
it is understood. Other properties in the middle
west will be included also, it is said. Thomas
Bruce of New York has been in the city the past
week in conference with a number of people in
connection.
Nominally the lake traffic is closed, but ship¬
ments will be permitted until November 30, un¬
less cold weather should set in sooner. The last
few days of the season witnessed heavier ship¬
ments than ever, and they would have been
phenomenal had there been cars sufficient at this
end to take care of the shipments or boats at
the other end to carry cargoes. Some of the
big companies havin,g storage capacity, or will¬
ing to secure it, have been shipping ceaselessly
for several weeks. The unprecedented lake traf¬
fic for November, carrying iron ore, grain, copper,
steel, iron and other shipments consigned to
Europe, seriously interfered with coal, espe¬
cially the grain shipments, according to opera¬
tors here. Boats would not wait for cargoes
of coal even when cars were waiting to be un¬
loaded, but would hasten up the lakes light in
order to take full advanta.ge of the grain ship¬
ments, which, cubic foot for cubic foot, paid
better than coal. Premium offers were of no
avail, and many coal companies have been sup¬
plementing their scant lake shipments by un¬
usually heavy rail shipments into the northwest.
Twin Cities Market.
Minneapolis and St. Paul, November 18. —
(Special Correspondence.) — Cold weather, accom¬
panied by two snowstorms, the latter part of last
week and the early part of this week, made it
seem like winter in this territory, resultin.g in the
largest volume of business at wholesale and re¬
tail reported in some time. The demand at whole¬
sale was accentuated because of the fact that deal¬
ers’ stocks were not large. They were exhausted
within a very short time. Probably the greatest
activity was in the hard coal trade. Dealers
have been extremely backward in taking in this
grade of coal, and many of them were out with¬
in a very short time after the cold wave arrived.
Tele.grams and long-distance calls flooded the
shipping companies Saturday and Monday. There
was also considerable activity in all branches of
the soft coal trade.
While a few cargoes may yet come forward, the
lake shipping season is practically ended. Ves¬
sels for new cargoes are almost impossible to
obtain, and the eastern shippers have such a
volume of tidewater and steam business that they
are not making satisfactory prices to take on
car.go coal. It is quite generally reported by the
Lake Superior dock companies that if there is a
normally cold winter they will not have sufficient
tonnage of some grades of soft coal, notably
splint and Hocking, to meet their requirements.
Smokeless is in about average supply, but it is
not expected there will be any surplus.
The transportation situation in the northwest
is beginning to attract considerable attention.
The grain movement is assuming large propor¬
tions, and country elevators cannot obtain suffi¬
cient railroad equipment to load the grain out
as fast as it is received. Northern roads are
transferring a large number of cars of grain
going on to foreign lines to conserve their equip¬
ment. It is reported one of these northern roads
is under a charge of $500 a day at present for
transferring grain shipments. All the prominent
railroad officials are lookin.g for a serious situa¬
tion as soon as snow and cold weather put in an
appearance. Switching in Minneapolis is serious¬
ly delayed at present on account of the conges¬
tion of loaded grain cars, but is expected to
grow worse before there is any improvement.
Collections in this territory are in fair shape.
Current market prices at wholesale on leading
.grades of coal sold in the Twin Cities are as
follows :
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . .$6.fi0 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 5.50 6.70
Buckwheat . 4.00 5.20
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.40
.“splint, dock run . 3.10
Hocking, screened lump and stove 3.30@3.40
Hocking, dock run . 3.00
Voughiogheny, gas, lump and stove 3.30@3.40
Voughioghenv, gas, dock run . 3,10
Pittsburgh vein, lump . 3.30@3.40
Pittsburgh vein, dock run . 3.00
Pocahontas, screened lump or egg 4.75
Pocahontas, screened lump and
egg mixed . 4.50
Pocahontas, mine run . 3.25
Cannel, lump . 5.25
Smithing, bulk . 4.25
Smithing, in 100 lb. sacks . 6.00
Hrifiuets, anthracite . 5.00
Briquets, smokeless . 5.00
$4.26@4.36
4.06
4.26@4.36
3.96
4.26@4.36
4.06
4.2C@4.36
3.96
5.71
5.46
4.21
6.21
5.21
6.96
5.96
5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is
as follows ;
Southern Illinois chunks . $1.65@1.75 $3.95@4.05
.Southern Illinois egg . 1.65@1.75 3.95@4.05
Southern Illinois No. 1 nut . 1.65@1.75 3.95@4.05
Southern Illinois No. 2 nut . 1.40@1.50 3.70@3.80
Southern Illinois run of mine.... 1.15@1.25 3.45@3.5.')
Southern Illinois run of mine... 1.15@1.25 3.45@3.55
Southern Illinois 2-in. screenings. .70 4.00
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
St. Louis Trade.
St. Louis, Mo., November 18. — (Special Corre¬
spondence.) — The weather is the feature of the
business. The unusually warm weather has made
business very slow ; a couple of cold days caused
it to spurt up a little bit, but the warm weather
pgain has caused it to ease off. It was somewhat of
Ja surprise to see how sensitive the trade was to the
weather, because all dealers are well stocked, and
one would imagine that it would take at least ten
days of cold weather to stir up anything like a
stron.g demand.
While the mines have been unable to put in
full time, prices have been maintained remark¬
ably well on all grades of coal. This has been
satisfactory to both operators and dealers. We
are expecting much colder weather tomorrow,
which is causing much rejoicing by the coal trade,
and all hope that it will last. Industrial condi¬
tions, on the whole, seem much better, and with
anything like reasonable weather the coal market
will be in very fair shape.
Standard operators are running about half time,
though some mines are doing much better. Prices
remain about the same, and are as follows :
F. O. B.
Standard Coal — Mine.
6-inch lump . $1.30
6x3-inch egg . 1.25
2-inch lump . 1.05
Steam egg . 90
No. 1 nut . 1.15
No. 2 nut . 80
Mine run . 85
Screenings . 40
F. O. B.
St. Louis.
$1.8754
1.82 54
1.6254
1.4754
1.72 54
1.3754
1.42 54
.9754
Northern Illinois mines and Staunton opera¬
tors are pe.gging away on contract business, and
some little open market business. A number of
reports of cut prices have been heard. In a good
many instances their prices are identical with
those in the standard field ;
F. O. B. F. O. B.
Mine. St. Louis.
O-inch lump . $1.50 $2.07^4
2-inch lump . 1.25 1.82
Screenings . 40 .97^2
Williamson county coals are moving fairly well.
About four to five days a week seem to be the
average run, and prices are on the whole satis¬
factory. The range of prices between the mines
is quite large :
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.40@1.75 $2.02 54 @2.4754
3x2-inch nut . 1.20@1.75 1.9254 @2.4754
Screenings . .50 1.22 54
Franklin county coals are movin.g very well.
Prices are being rigidly maintained, and a run
of three to four days is an average for the field.
It will only take a day or two of cold weather
to bring the Franklin county operators back to full
time :
6-inch lump, egg or nut
No. 2 stove .
Screenings .
F. O. B. F. O. B.
Mine. St. Louis.
.$1.75 $2.4754
. 1.50 2.2254
. .60 1.3254
The city demand for hard coal has dropped
to practically nothing. Chestnut is still in pretty
.good demand throughout the country. The chances
are that the buying will be constant throughout
the season ;
Anthracite —
Chestnut .
.Stove or egg. .
Grate .
F. O. B. St. Louis.
. $7.55
. 7.30
. 7.05
F. O. B. F. O. B.
Mine. St. Louis.
I.ump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . . $4.25
By-product coke (all sizes) . 4.50
The prices on Illinois soft coal, f. o. b. East St. Louis.
Madison, Venice or Granite City. III., are 20 cents lower
than the above quoted St. Louis prices.
No. 21]
THE BLACK DIAMOND
421
Cleveland Market
Cleveland, Ohio, November 18. — {Special Cor¬
respondence.) — The indications now are that the
lake season will close on December 1st. Eastern
Ohio operators are cleaning up their mines and
loading all surplus stocks preparatory to that end.
A few years ago it was difficult for the shippers
to complete their loadiag by this date, and often
they were compelled to secure an extension of
insurance for a week or more and occasionally
pay an advance in carrying rates to have their
last cargoes accepted. While it might be possible
to send up a few cargoes after the closing date
this season, there seems to be no indication of an
intention to pay additional changes under any
circumstances. Shippers say the business will not
stand this, and they prefer to have a smaller
amount of coal at the upper lake points.
Some time ago there was some talk of storing
a certain amount of coal in vessels at the ter¬
minal docks, but if the demand for tonnage by
grain shippers continues this may be abandoned.
The boats not under contract will hesitate to
spend their time loading the coal, if there is a
possibility of making another trip for grain.
A somewhat better demand for slack developed
the past week which resulted in an advance in
some grades and a stiffening of prices in others.
Except in a few instances, however, the larger
sizes were not affected.
While prices have sagged somewhat on certain
.grades of domestic coals, others have begun to
enter the market in larger quantities and are
commanding their usual figures. This seems rath¬
er a peculiar situation and has not been ex¬
plained to the satisfaction of the dealers.
No. 8 coals have not shown sufficient activity
to warrant a shade of increase in price since last
week, but fair quotations would show on an aver¬
age that figures .given then hold good at the pres¬
ent time. Just what effect the closing of naviga¬
tion will have on prices in the local market is
causing some discussion amon.g producers and
jobbers at the present time:
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.05@1.10 $1.96@2.00
Run of mine . .95 1.85
Slack . .85 1.75
I'he usual amount of Coshocton coal reached
this market during the past week, but the de¬
mand did not exceed the supply, with the result
that no change in quotations have been made :
F. O. B. F. O. B.
Coshocton — ■ Mines. Cleveland.
hump, 4-inch screened . $1.70@1.75 $2.40@2.45
l'/4-inch . 1.60@1.65 2., 1002. 35
Egg and nut . 1.05@1.10 1.75@1.80
Pittsburgh slack has been very scarce and the
market is firm at the prices quoted below :
F. O. B. F. O. B.
Pittsburgh — Mines. Cleveland.
Slack . $0.85@ .90 $1.85@1.90
Jobbers report difficulty in securing You.ghio-
gheny slack in sufficient quantities to meet the
demand. Other sizes became active within the
past few days. Quotations for Wednesday fol¬
low :
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
I'A-inch . $1.40@1.50 $2.40@2.50
Three-quarters . 1.30 2.30
Run of mine . 1.20 2.20
Slack . 95@1.00 1.65@2.00
Massillon operators are again about three weeks
behind in their orders. However, there has been
no advance except in slack, which is from five
to ten cents above the figures last week :
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 2. .50 3.20
Slack . 95@1.00 l.G5@2.00
Smokeless coals took another drop the past
week, in some instances the offerings bein.g down
from fifteen to twenty cents per ton. Retailers
are still holding off orders for their later sup¬
plies, it seems :
F. O. B. F. O. B.
Smokeless — Mines. Cleveland.
Lump . $2.00 $3.45
Egg . 1.90 3.35
Run of mine . 1.30 2.75
There has been no change in prices of Cam¬
bridge coals, but the demand for the past few
days has been rather weaker than usual :
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Three-ouarters . $1.10 $2.00
Run of mine . 1.00 1.90
Slack . .90 1,80
Hut little Eairmont slack arrived in this mar¬
ket within the past week, and conditions have
not materially changed with respect to it :
F. O. B. F. O. B.
Fairmont — Mines. Cleveland.
Slack . 1.90
Quite a little Kentucky slack of good {[uality
arrived in the market recently and was handled
in competition with the better grades of local
slacks. Larger sizes were quoted the same as last
week :
F. O. B. F. O. B.
Kentucky — Mines. Cleveland.
4-inch block . $1.90@2.00 $3.15@3.25
There has been a fair demand for Wainwright
coal for domestic purposes through the week,
with quotations as follows :
Goshen — Wainwright Mines —
Three-quarter, domestic .
3-inch lump .
Lump .
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1.40 $2.10
1.80 2.50
1.65 2.35
1.00 1.70
Other Goshen coals have been fairly
there has been no change in prices ;
F. O. B.
Goshen — • Mines.
Three-quarters . $1.30
154-inch . 1.40
Slack . 1.00
active, but
F. O. B.
Cleveland.
$2.00
2.10
1.70
Hocking egg and slack sold in this market dur¬
ing the past week at seventy cents at the mines
or $1.70 here. There has been no change from
last week’s quotation of $1.50 for the prepared
lump.
Cleveland News Notes.
T. J. Donahue, the Y. & O. Coal Company,
Pittsburgh, spent some time here this week.
G. T. McCarty, the United Coal Company,
Pittsburgh, called on the coal men of this city
Wednesday.
Data is being collected for use in presentin.g
their railroad rate case to the public utilities com¬
mission by the eastern Ohio operators. No date
has been set, however, for taking up the matter
actively by the commission. The fact that this
case was filed prior to the promised increase in
the differential between Ohio and West Virginia
rates will make it an interesting one. The in¬
crease offered by the roads would not have en¬
abled eastern Ohio producers to put their coal
on the market in competition with the West Vir¬
ginia product any way, but they do stand a fair
opportunity to secure a reduction in the Ohio rate.
Indianapolis Trade.
Indianapolis, Ind., Nov. 18. — (Special Corre¬
spondence.) — The demand for coal in Indiana
continues about in the same groove it has oc¬
cupied for the past month. There has been a
slight increase this week in the demand for
domestic as the mercury began a downward
slide. However, domestic is only fair for this
time of the year.
The trade in steam coal is increasing stead¬
ily but not rapidly. The situation is better
than it was at this time last year. It appears
that the war order business is being extended
to more localities in Indiana and that many
lines of trade are improving. Steam coal, how¬
ever, is selling at the prices that were quoted
six months ago. There is not much likeli¬
hood of an advance in steam coal before the
close of the present winter. New contracts
are to be made with the miners next spring
which doubtless will upset the present scale
of prices between the consumer and the op¬
erators.
Domestic coal is quoted at a price that
may be considered normal for mid-November.
The open winter has been of great solace to
the consumers. There has been no car short¬
age and probably the retailers are as well off
as they would have been if they had been
put to the extra trouble and expense of hand¬
ling coal under unfavorable weather condi¬
tions. There is not much coal on the market
that is not sold before it leaves the mines.
The demand for Pocahontas and other east¬
ern coal is fairly satisfactory to the dealers.
The following prices are being quoted by
the wholesalers:
F. O. B.
Indiana — Mines.
Mine run. No. 4 . $1.10@1.20
Mine run, Nos. 5 and 6 . 1.05@1.15
Nut . 1.20 @1.30
Egg . 1.30@1.40
154-inch steam lump . 1.25@1.35
No. 4 screenings . 70@ .75
Nos. 5 and 6 screenings . 55@ .65
2 54-inch domestic No. 4 . 1.50@1.55
No. 4 domestic . 1.60@1.G5
Nos. 5 and 6 domestic . 1.40@l.f)0
Brazil block domestic . 2.25@2..50
No. 1 washed coal . 1.75
No. 2 washed coal . 1.65
Southern Indiana Field —
Mine run . 1.05@1.10
Domestic lump . 1.40@1.50
F. O. B.
Indianapolis.
$1.60@1.60
1.55 @1.65
1.70@1.80
1.80@1.90
1.75@1.85
1.20@1.25
1.05@1.15
2.00@2.n5
2.10@2.15
i.9n@2.in
2.75@2.50
2.25
2.15
The Indianapolis retailers are quoting the
following prices: Linton No. 4 lump, forked.
.$3.25 a ton; Indiana lump, forked, $3.00; Indi¬
ana lump and egg, screened, $2.75; Kenawha
lump, forked, $4.25; Ohio Hocking lump,
forked, $4.25; Ohio Hocking washed egg, $4.50;
Kentucky, lump, $4.50; Ohio Jackson, lump,
forked, $5.00; Blossburg, smithing, $5.50;
Cannel lump, $6.00; Pocahontas, forked lump,
$6.00; Pocahontas, shoveled lump, $5.50; Poca¬
hontas, mine run, $4.50; Pocahontas, nut and
slack, $3.75; Anthracite, chestnut, $8.25; An¬
thracite, stove and egg, $8.00; Anthracite, grate,
$7.75; Connellsville coke, $6.00; Indianapolis
by-product coke (all sizes), .$6.00.
Extra delivery charges: Bags, 50c a ton ex¬
tra, ground floor or dumped in cellar; bags,
75c a ton extra, carried into cellar; charge for
chute or wheelbarrows, 25c a ton; coke, bags
60c, bags in cellar 80c.
Indianapolis will get the next convention
of the United Mine Workers, who indulged
in a lot of threats here at the last conven¬
tion about moving to another city. They have
arranged to hold their convention in Tomlinson
Hall here beginning the week of January 24.
Duluth Trade.
Duluth, Minn., November 18. — {Special Cor¬
respondence.) — Coal dock men are now beginning
to believe that there will be a very small amount
of coal left at the head of the lakes when next
spriag arrives. This result is, of course, condi¬
tional on the continuation of present indications,
which are that there is going to be an unusual
demand for coal from the country during the
coming winter.
While for several weeks there was a lull in
the demand, it is nevertheless true that more coal
was goin.g out than was coming in. This is more
emphatically the case right now than it was a few
weeks ago. The demand during the past week
took a decided boom and salesmen’s reports indi¬
cate that it will continue for quite a long time
yet before it subsides. In case a severe winter
breaks, it will not subside. That there is a very
.great deal more coal going out now than there is
arriving from down the lakes is a fact, and the
margin is increasing constantly. Navigation will
soon be over ; in fact, it might be said that the
navigation, so far as coal is concerned, will be
over in less than two weeks, so that not a great
deal more can be expected. Besides that, the
succession of storms that have swept the lakes,
particularly Lake Superior, have robbed the boats
of much valuable time, and has had scores of
them continuously in shelters for the last two
weeks. There will be little chance for more than
one more round trip, even in the event of com¬
paratively decent sailing conditions, which are
by no means assured.
Stocks are coming down rapidly and it is pre¬
dicted that the left-over stock next spring will
be the smallest for years. Last spring’s is nothing
to compare with, for it was abnormally large.
There is storage capacity at this point for 8,000,000
tons, and dock men claim that at the present time
there are less than 5,000,000 tons in store here.
During October interior dealers in the north¬
west bought 4,531 more cars of coal than in the
same month in 1914, accordin.g to reports on ship¬
ments from the docks here. The shipments dur¬
ing October consisted of 31,818 cars of anthracite
and bituminous coal. October’s shipments are
marked also for being the record month of ship¬
ments in the history of this point as a distributor.
A new feature — for this end of the lakes —
will be furnished by boats holding storage coal
in this harbor during the comin.g winter. They
will be boats of the Pittslnirgh Steamship Com¬
pany’s fleet, and while it is likely that most of
this coal will be for the Lhiited States Steel Cor¬
poration’s consumption, not all of it will be. The
idea is that instead of the boats wintering below,
it is desired to have them here so that they may
get an early start with iron ore in the spring,
and an unusual rush of ore is expected for next
year. Quite a number of the boats will hold stor¬
age coal here, and will begin arriving with it to
lay up for the winter in about two weeks.
Iron ore is goin.g to interfere with the coal
movement early next spring, according to pres¬
ent indications. As has been said, an immense
rush of ore from this point to Lake Erie points
is expected, and already a very large amount of
tonnage has been placed for early movement at
ten cents a ton advance over this year’s con¬
tracts. In view of the fact that this tonna.ge calls
for rapid movement, most of the boats con¬
tracted for will come up light in order that they
may take as much of the ore down as possible
and at an early date. That will preclude their
waiting for coal cargoes. The advance in ore
rates is also certain to restdt in a material ad¬
vance in the rates for coal carrying.
422
THE BLACK DIAMOND
I November 20
New York Trade.
Anthracite Situation Strong — Bituminous
Situation Growing More Tense
Each Week.
Office of The Ib.ACK Diamond,
New York, November 18.
The anthracite trade is holding its own pretty
well. L'ntil the first of this week the weather had
not been favorable to a large consumption of
anthracite for domestic purposes, and retail hu\--
in.g had been a little backward. However, retail
dealers are doing the best they can to get the
consumers to take coal on at this time, and a fair
tonnage has been moving into consumers’ bins.
The companies and selling agencies report that
trade is active on all sizes, with the exception of
egg. Stove and chestnut fall short of require¬
ments. Coal is not moving promptly, due to the
very heavy congestion of merchandise at the
tidewater ports, and there is some complaint
that the line trade shipments, especially between
the mines and tidewater, arc delayed from four
to six days owing to con.gested conditions of the
various railway lines.
Practically all of the prepared sizes are selling
at the full circular price, with the possible excep¬
tion of egg. Most of the individuals are selling
this at ten cents a ton off circular.
Production is practically up to the capacity of
the mines, with labor still unruly. This week,
there was a strike of about 3,000 miners of the
Lehi.gh Coal & Navigation Company, due to the
reason that several of the union members had
been suspended. From time to time mines are
tied up by button strikes, so that the operators
find it impossible to increase production.
Moreover, car supply is not up to requirements,
and this is bringing about a curtailment in pro¬
duction at certain of the collieries.
There is a heavy demand for coal for western
shipment in box cars, and these continue in very
limited supply. Considerable coal is being rushed
to tlie lake ports for loading before the season
of navigation ends. Now only about a week
remains in which coal can be shipped in this
direction. After that shipments west will have
to be made all-rail.
The steam size situation is in pretty good
shape. Some of the shippers are long on buck¬
wheat, but there is a very heavy demand that
takes practically all the rice and barley that is
offering. The all-rail demand for steam sizes
is better than the tidewater demand. At the low¬
er ports prices range from $1.75 for barley and
$2.00 for rice, and $2.30 for buckvyheat up. Good
grades have no trouble in findin.g buyers at the
full circular price. There is a very good demand
for pea coal, both for tidewater and line ship¬
ment :
Upper Lower
Ports. Forts.
I'.roken . $5.10 $5.00
Lgg . 5.3.5 5.25
■Stove . 5.35 5.25
Chestnut . 5.00 5.50
Pea . 3.55 3.45
Special grades of red ash and other high-
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above fi.gures.
Spot prices in individual coals at lower ports
are about as follows :
I'-gg . $5.05 and up
Stove . 5.20 and up
Nut . 5.20 and up
Pea . 3.25 and up
Puck . 2.30 and up
Rice . 2.00 and up
Harley . 1.75 and up
The Bituminous Situation.
There are several important features in the
bituminous sititation this week. First and fore¬
most is that of car supply. Usually on Mondays
practically all of the mines have a full supply,
due to the Sunday accumulation. Frequently it is
the case that the supply will be good also on
I'ttesday, not so bad on VVednesday, but tapering
off the last three days of the week. This week-
saw a car shortage on Monday, some of the big
operator,s on the Italtimore & Ohio lines especial¬
ly having only a sixty per cent supply. Tuesday
also found the supply very short, with Wednes¬
day brin.ging no improvement.
Labor is an important factor just now. Labor
and car supply dominate production, and with
both inadequate production lags. It is no longer
a question of orders. It is a question of cars and
miners. A great majority of the operators are
tied up on contracts. Usually an operator allows
himself some leeway, contracting, say, for only
sixty or seventy per cent of capacity. Some con¬
tract as closely as ninety to ninety-five per cent.
The operator who is contracted to within twenty-
live or thirty per cent of his capacity is doing
well these days to make his contract shipments.
Many are not able to do even this. Moreover,
those consumers who curtailed receipts of coal
duriag the summer months considerably below
their regular monthly quotas would now like to
even up by taking their full monthly quotas, plus
what tonnage they went shy on during the sum¬
mer, but they cannot do it. This argues for a seri¬
ous shortage at many steam plants during the
winter months unless relief can be secured from
sources unexpected at the moment.
A peculiar situation exists as to New England.
The price-cutting war that started around Boston
some weeks ago on contract business for 1910
delivery is said to be over. In the meantime,
trade has grown more active, with immediate
coal requirements larger, and in most instances
with consumers none too well stocked. More¬
over, several middle houses that made delivered
prices at New En.gland ports and who failed to
protect themselves as to vessel tonnage now find
the vessel markets denuded of vessels for this
trade. Rates have increased fifty per cent in
some instances, or, say, fifty cents a ton from
Philadelphia and the Roads. This takes all the
velvet and a considerable portion of the meat out
of contracts made on a basis of normal vessel
rates. Some of the interests who have been un¬
able to secure boats are now said to be looking
about to see if they cannot make all-rail deliveries
to their customers, and as railroad rates are
somewhat higher than water rates, they stand to
lose quite a lot of money in carrying out their
commitments.
Mine prices are stronger. In central Pennsyl¬
vania the range is from $1.20 up on medium
grades. This makes this coal $2.75 f. o. b. New
York harbor ports. Choice grades sell at $1.40
to $1.50 at the mines. West Virginia steam
coals are selling at about the same prices. Very
few lots of spot coals are now offered at New
York harbor ports, which indicates that ship¬
ments are being kept very closely in line with
contracts.
The Vessel Situation.
Coal shippers who have tonna.ge to move from
Philadelphia to New England points find in many
instances that they cannot obtain boats. There
is a great scarcity of schooners, and such schoon¬
ers and the barges that are used regularly in
carrying coal are all held under time charters.
When a free vessel is located the rate asked is
usually so high that the coal shipper cannot do
business. Vessels are very scarce for every
purpose and rates continue to advance in all di¬
rections.
We quote current rates on freight as follows ;
From Hampton Roads to Boston, ninety-five
cents to $1 is about the range ; to Portland and
points east of Boston, from $1 to $1.20. To
sound points, eighty-five cents to $1.10. From
Philadelphia to New England points, about five
cents under the Hampton Roads rates.
Erom New York to sound points as follows:
Bridgeport, thirty-five cents; New Haven, forty-
five cents; Providence, fifty cents; New Bed¬
ford, fifty-five cents. To Boston, around cape,
sixty to seventy cents; through canal, seventy-
five to eighty cents. Harbor rates twenty to
twenty-five cents.
Current quotations on bituminous coal in spot
lots are :
F. O. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
$1.40
Ordinary .
. 2.S0
1.25
Medium grades .
1.20
Cambria County —
Best Miller vein .
. 3.00
1.45
Medium grades .
. 2.80
1.25
Cheaper grades .
. 2.75
1.20
Clearfield County —
Best grade .
1.35
Ordinary grades .
. 2.75
1.20
Indiana County —
Best grade .
1.25
Medium grade .
1.20
Maryland —
Georges Creek big vein .
. 3.15
West Virginia —
Ordinary grades .
1 .20
Best gas, 54 -inch luinp .
Hest grade, run of mine .
. 2.P0
1.30
. -2.70
.95
Gas slack .
1.00@!.15
New York Trade Briefs.
C. R. Brig.gs of A. H. Powell & Co., New
Haven, Conn., was in New York on Tuesday.
R. W. Pierpoint of James Pierpoint & Co.,
Philadelphia, was a visitor to the New York trade
this week.
R. C. Clark of the firm of Benedict & Pardee
of New Haven was visiting the trade in New
York this week.
A. B. Crane, New York sales manager for H.
H. Lineaweaver & Co., attended the Yale-Prince-
ton football game at New Haven on last Satur¬
day.
R. S. Townsend, treasurer of E. C. Townsend
Coal Company of Boston, was a recent visitor
to New York trade.
John Edmonds of the Philadelphia office of
Madeira, Hill & Co., visited the New York offices
of his company on Wednesday.
John Laing, president of the Wyatt Coal Com¬
pany, with headquarters at Charleston, W. Va.,
was a New York visitor last week.
Kuper Hood, general sales agent of the Hous¬
ton Coal Company, with headquarters at Cincin¬
nati, was a recent visitor to New York.
The Clinchfield Fuel Company have taken much
larger quarters on the thirteenth floor at No. 24
Broad street, now having a large portion of the
southwestern win.g of this floor in this building.
Harry A. F'reeman, who recently withdrew
from the Freeman-Chestnut Coal Company of
New York and Philadelphia, is now a member of
the newly organized concern of Freeman & Cur¬
rie, with offices at No. 1 Broadway. F. Currie
of the new concern was formerly with the Chesa¬
peake & Ohio Coal A.gency Company.
R. C. Hill, vice-president of Madeira, Hill &
Co., No. 143 Liberty street, will return home on
Monday from a successful huntin,g expedition
of two months spent in British Columbia, on
which trip he was accompanied by Mr. H. P.
Davison of the banking house of J. P. Morgan &
Co. They were met by Mrs. Hill and Mrs. Davi¬
son at San Francisco and attended the exposition.
Louis Wertheim, who headed the late firm of
L. Wertheim Coal & Coke Company, which had
headquarters at Jersey City, and did a large busi¬
ness in that city and New York for a period of
twenty years, until its failure several years ago,
also recently interested in the Scranton & Wyom¬
ing Coal Company, which has a plant at Twen¬
tieth street and East river, died on Sunday at
his home in Jersey City at the age of forty-eight.
Herbert Barber, president of Barber & Co., Inc.,
steamship agents at No. 17 Battery place, and
head of the Barber Line, which controls four
steamship companies — the New York & Oriental
Steamship Company, the La Plata Steamship
Company and the Barber line to Prance and the
Barber line to Australia, died on Tuesday morn¬
ing at the Presbyterian hospital of New York,
following an operation for an intestinal disorder.
Mr. Barber was also president of the Virginia
Coaling Corporation, the Atlantic Stevedoring
Company and the Oriental Operating Company.
He was born in Kent, England, sixty-eight years
ago, and came to this country when a youn.g man.
dhe Johnstown (Pa.) Tribune states that the
Hillworth Coal Company, which has headquar¬
ters at No. 1 Broadway, New York, has begun the
work of reopening its No. 3 plant at Acosta, in
Somerset county, and expects to have it in full
operation by January 1st. John C. Cos.grove, the
general manager, who has his headquarters in
Johnstown, has placed an order for new pumps,
new haulage locomotives and new mine cars.
When the mine is ready for operation the com¬
pany expects to employ about 100 additional
men. Two other mines of this company near
Acosta are working now. The No. 3 is practi¬
cally a new mine, having been opened originally
about two years ago.
Here is how a well-known bituminous man
sized up the present activity in the medium and
cheaper grades of coal : “As you know, these
coals that during the summer sold at eighty and
ninety cents a ton in West Virginia and from
ninety cents to $1 in Pennsylvania, are now sell¬
ing well above the dollar mark. This is due, I
believe, to the fact that many of the middlemen
who have contracts, say on the better .grades of
coal, and who are spot buyers to take care of
their contracts, or in any event, not under yearly
contracts to protect their commitments, when the
prices on the good coals began to stiffen, began to
look about for the cheaper grades so as to fill
their orders and at the same time get out even.
Thus we had a condition when these middlemen
were biddin.g against one another for the inferior
coals ; and as a result, they have taken quite a
climb in price. Just how satisfactory these coals
are to their receivers, we do not at the moment
know. As long as the middlemen take care of
their contracts, and there are some who will do
this until their last dollar is spent, we will not
have any direct trade with their customers for
spot lots. However, let them fall down, and there
are some who will do this, then the customer
will come into the market direct and usually he
wants the best.”
THE BLACK DIAMOND
423
No. 21]
Philadelphia Trade.
Colder Weather Brings a Better Demand
for Anthracite — Bituminous Is
Quite Strong.
Office of The Black Di.lmond,
1400 Land Title Building,
fniLADELPHiA, November 18.
Trade conditions are holding true to form —
if the use of the race track reporter’s dope
may be considered King’s English. The hard
coal trade has finally been treated to a cold
snap that is but a forerunner of weather still
to come. In the bituminous line the car short¬
age, demand from consumers and general con¬
ditions have turned the market about so that
climbing prices seem the rule rather than the
exception.
The advance of twenty-five cents on the ton
for pea coal has produced quite a new angle
to the retail trade in anthracite here. For quite
some time there has been a set of retailers
who have found it expedient, as a method to
produce trade, to cut prices in certain locali¬
ties of the city. Even these gentlemen have
been met on a common battleground and have
had their prices slashed. Retailers who were
of the belief that fsuch battles were not in
keeping with good merchandising, have met
with the price cutters and attempted to show
them the error of their ways. When the
advance on the price of pea coal was an¬
nounced there was quite some speculation as
to what effect this would have upon those
who were selling at lower than the standard
prices. The old line prices have been $5.25 for
pea, $7.00 for egg, $7.25 for stove and $7.50
for nut. The cut prices were $4.75 for pea,
$6.50 for egg, $6.75 for stove and $7.00 for nut.
The advance of the price of pea coal has left
that size unchanged and has raised the price
on the other three sizes twenty-five cents a
ton since the first of the month. Even in the
cases of the “super-cutters” who have been
selling pea coal at $4.50 a ton their quotations
have been unchanged. Various expressions of
opinion were gleaned through this strange
maneuvering of prices, but one terse head of
a coal company put it this way: “All the
damphools are not dead yet.”
The demand has been of the best since the
weather tightened, with the pea size remain¬
ing in the limelight. The movement has been
fairly heavy and shipments have been going
forward by boat and rail to New England
points in good volume.
Bituminous Situation
The car shortage still occupies the center
of the stage and this, coupled with an in¬
creased demand from all sources, has kept
the coal men who have contracts to fill in the
same position as a hen on a hot griddle. Bro¬
kers who have been able to get free coal for
spot delivery have been “in clover” and there
has been little change in this situation. Some
of the largest miners of coal in Somerset and
Clearfield counties have declared themselves
out of the market until the beginning of the
new year. They have no coal to offer and
will not trust to a possible change in the car
supply.
Western Maryland coals have been playing
all sorts of antics in the last week. Free-
ports have been sold as high as $1.30 and a
good many sales have been made around $1.25.
Lower Kittanings are held at $1.20 and up —
and the “up” in this instance means as much
as can be had for them. Fairmont coals have
been in about the same position with the
buyer and seller making individual markets
according to the stress that necessitated the
buying. Quotations on this range from $1.10
to $1.25 for any of the grades, slack, run of
mine or three-quarter inch lump.
At the piers there has been no stringency,
though each day has changed the situation.
Loading for export has been below the usual
tonnage, but quite a bit of coal has been going
into the holds for coastwise trade and for
bunkerage.
Prime vein Quemahonings are hard to lay
hands on and a wide range of quotations has
been the effect. While some sales have been
reported about $1.45, operators at the mines
who have been approached to name a price
have been holding this coal at $1.()0.
Greensburgs are still going to fill export
contracts and to fill the Pennsylvania railroad’s
storage order, and these are out of the mar¬
ket as far as price is concerned, also.
Philadelphia News Notes.
Clarence Clarke of Benedict, Pardee & Co.,
of New Haven, Conn., was one of the New
England visitors of Monday.
Edward Page of the Hew England Coal &
Coke Company of Boston was in this city on
a business trip the fore part of the week.
George Speese, vice-president of the George
B. Newton Coal Company, left this week for
a vacation, which will be spent in the south.
A. C. Speye of the Maryland Coke Company
of Pittsburgh was among those who were
noted as having visited the coal trade here
last week.
J. Edgar Long of J. E. Long & Co., of
Clarksburg, W. Va.. was in Philadelphia and
viewed the eastern situation through the local
binoculars.
\Trnon Taylor, general manager of the Cam¬
bria Smokeless Coal Company at Brockway-
ville. Pa., was one of the trade visitors of
the week.
Leonard F. Leighton of the Carbon Coal &
Coke Company was another member of the
Boston trade who was among those who were
in this city this week.
Murray B. Courtright and Harry Cortright
of the Cortright Coal Company were away this
week on a trip of inspection of the company’s
mines in the Fairmont, W. Va., district.
Dr. W. S. Blaisdell, secretary-treasurer of
the Punxsutawney Coal Mining Company, of
Punxsutawnej’, Pa., visited the local offices
of that company during the fore part of the
week.
An order for 500 more steel coal cars has
been given the Standard Steel Car Company
by the Philadelphia & Reading railroad. This
is in addition to the order for one thousand
cars which was placed in October.
Ivy L. Lee. former Philadelphian and pub¬
licity man for the Pennsylvania railroad and
now on the personal staff of John D. Rocke¬
feller. left on Tuesday for Colorado where he
will inspect the properties of the Colorado
Fuel & Iron Company.
Though it has taken three weeks for the
news to become public, Mr. J. C. Stauffer, man¬
ager of the local branch of B. Nicoll & Com¬
pany, has been receiving the congratulations
of his friends upon his venture into the sea
of matrimony. The happy young lady was
Miss M. McCanna of Pittsburgh and the nup¬
tial knot was tied in Maryland.
.At a meeting of the stockholders of the
Wilmore Coal Company it was voted to merge
the properties under its control with those of
the Berwind-White Coal Mining Companj-.
The Wilmore properties were a subsidiary of
the Berwind-White corporation and at the
latter’s office it was stated that the business of
the Wilmore concern would be taken over in
its entirety. ’
The annual meeting of the George B. New¬
ton Coal Company has been changed from the
22nd to the 29th inst. Quite some surprise
was occasioned by the receipt of a letter from
Cassatt & Co., bankers, by the stockholders,
which indicates that fireworks can be expected.
In this letter the intimation is given that a
change in the management will be insisted
upon by certain of those who are financially
interested.
' Quite a little interest was displayed in
the news dispatches from Uniontown to the
effect that the Midvale Steel and the Cam¬
bria Steel companies, whose headquarters are
here, are dickering with the receivers for Josiah
\'. Thompson for the purchase of a part of
his coal land holdings and intend using the coal
for coke purposes. Coal men see in this a
substantiation of the declaration made by the
steel companies that they had work for months
ahead.
The steainshii) Rochambeau of the French
Line had a fire in its bunkers shortly after leav¬
ing New York, about ten days ago. It was
thought that the steamer would have to put into
Halifax, but the fire was put under control and
the voyage continued to Bordeaux. W'hen the
wireless brou.ght the news of the fire on the
Rochambeau, it was surmised that a time bomb
was planted on the steamer. Upon arrival at
Bordeaux, the captain of the steamer stated that
the fire was caused by spontaneous combustion,
due to placing new coal on top of old coal in the
bunkers.
New England Trade
Boston, November 18. — (Special Correspond¬
ence.) — Excitement in the local wholesale bitumi¬
nous market has subsided. The 1916-17 price
war bubble seems to have burst. The firm that
started the price cutting, while giving out no
official information, has, it is understood, inti¬
mated to people that it had booked all the
1916-17 business it cared to. The firm that
recently acquired the surplus 1916-17 vessel char¬
ters is, according to report, still booking orders
for next season. In the meantime other con¬
cerns have been doing everythiag possible to meet
conditions as they will exist next season, and
there is a feeling that things will not be as
unsatisfactory and unprofitable as was first
thought.
While the average wholesale house has been
anticipatin.g conditions as they will exist next
season, activities have not been confined to this
one direction. As a matter of fact nearly every¬
body is enjoying a good business in New River,
Pocahontas, Pennsylvania, Georges Creek and like
coals. Industrial conditions throughout New
England are unmistakably decidedly better than
a month ago, and naturally the consumption of
bituminous has increased proportionately. A great
many of the manufacturing concerns had large
stocks of coal on hand, but these have been ma¬
terially reduced and everybody seems to want
coal and want it badly. One never hears nowa¬
days of cancellations of contract coals, but quite
often a dealer is requested by a manufacturer to
double his order. Retail firms are moving much
bituminous, now that the apartment houses and
office buildings have to be heated.
Stocks of New River and Pocahontas at Hamp¬
ton Roads ports are still large, but one hears less
and less about price concessions now that the de¬
mand is better. One thing seems certain, and that
is that shippers are getting $2.85 per ton f. o. b.
southern ports more often than they were a fort¬
night a.go. At Mystic Wharf, the spot market
for New River and Pocahontas is even better
than it was a week ago, and sales at $3.75 per
ton on cars are more numerous. Georges Creek
is in better demand and very firm at $4 to $4.10
on cars. Pennsylvania bituminous (all-rail) is
strong on a basis of $1.10 to $1.65 per ton on cars
at the mines. The off-shore business is still
unsatisfactory.
The local wholesale anthracite market seems
to have become a weather affair. Business a
week ago was all that could be expected, but re¬
cently another spell of unseasonably warm weath¬
er, as one dealer puts it, “put a crimp into the
market.” During the past day or two the weath¬
er has been more seasonable, and trade has
picked up again. This is what one wholesaler
says about the trade: “Take a nice warm day,
such as we have had recently, and you can’t get
a fellow to take coal if you should give it to him.
Perhaps two days later it is colder, and the same
dealer who would not take coal now wants it
and wants it liad, and he will give you all kinds
of arguments why you should take care of your
trade. .A coal dealer has to be a pretty .good-
natured fellow to hold down his job.”
With the month half gone, most firms say that
November bookings to date compare very favor¬
ably with those for the corresponding period last
year. This is certainly encouraging news. The
demand continues for car.go and all-rail lots as
well. Stove is still the most popular size, nut next
and pea third. Some firms say they are sold well
ahead on pea and are not anxious to take on new
business. The buckwheat situation is unchanged ;
the demand is larger than the supply. Prices on
everything are strong, but unchanged. The car
supply at the mines appears to be a little lar.ger
than it was a week or ten days ago.
Weather conditions outside have not been very
favorable for the shipment of coals, and as a re¬
sult the movement has been slower. The marine
freight rate market, however, appears to be as
strong, if not more so, than it was at last re¬
ports. Very little space from Hampton Roads
ports to Boston is available for less than $1 per
ton. Anthracite rates from New A’ork to Bos¬
ton are unchanged at fifty to fifty-five cents.
New England Trade Notes.
The Pond Creek Coal Company turned out
72,274 tons of coal in October, in September the
production was 74,219 and in October last year
54,862 tons.
The Union Li.ght & Power Comi)any of Augus¬
ta, with a capital of $50,000, has been granted a
Maine charter. The incorporators of the com¬
pany are : Ernest L. McLean, Frank E. Southard
of .\ugusta, and Pauline Lowell of Hallowell, Me.
424
THE BLACK DIAMOND
[November 20
Baltimore Trade.
Baltimore, November 18. — (Special Corre¬
spondence.) — Real wintry weather has come to
this section. A little ice is noted here and
there, and chill winds have been blowing; to
the effect that the belated coal consumer who
needs fuel for warmth has been hustling to
get under cover. All of the anthracite men
have been rushed with orders. As deliveries
are slow from the mines by reason of car
shortage, local stocks have been called upon
in some cases to a considerable extent. It is
not over-pleasing to many coal men who had
hoped to conserve stored supplies in anticipa¬
tion of strike clouds for the spring, to have
any drain made upon them.
The soft coal situation has not undergone ,
much change. The early part of last week
saw a fall-off in demand for unattached coal,
but this made little difference to the trade as
the urging for fuel under contract is such as to
readily absorb all coal that can be gotten
through. From time to time there was a little
free coal offering at tide by reason of lack of
sufficient vessel bottoms reporting to take all
coal consigned here on export account, but
this was readily absorbed at good figures.
Prices to the trade were quoted about as fol¬
lows :
F. O. B.
F. O. B.
Fairmont —
^Tines.
Baltimore.
Three-quarter .
Run of mine .
. $1,05
$2.48
. .95
2.38
Slack .
. .95
2.3S
Somerset — •
Best .
2.63
Good .
2.43
W. M. R. R.—
Freeport .
. 1,10
2.28
F. R. R.—
Best South Fork .
. 1.40
2.58
Miller vein .
2.48
Ordinary .
2.23@2.28
The coal trade as
a whole is much
worried
by car scarcity that is generally not more than
sixty to eighty per cent of needs. The rail¬
roads are bending every effort at relief, but
are handicapped by the fact that vessel short¬
age at all Atlantic ports is such that thousands
of cars have piled up at terminals with little
prospect of quick unloading. The vessel sit¬
uation here has hit the export coal trade hard.
Last week the movement on foreign account
dropped to less than 13,000 tons, the lowest on
record for a number of months past. Few
charters were reported during the period also,
so that the prospects for an immediate pick¬
up in this trade seem poor. Vessel rates are
beyond the reach of most shippers. Some
idea of conditions may be gathered from the
appended list:
To the west coast of Italy, 70 to 75 shil¬
lings; Marseilles, 65 to 70 shillings; Barcelona
or other Spanish ports, 60 to 70 shillings; Mon-
tevidea, about 45 shillings; Buenos Aires or
La Plata, about 45 shillings; Rosario, about
50 shillings; Rio de Janeiro, about 45 shillings;
Santos, about 45 shillings; and Valparaiso or
Callao, about ,$7.50 per ton.
To other ports the rates quoted are as fol¬
lows: Havana, $2.75 to $3.00; Cardenas or
Sagua, $3.00 to $3.25; Cienfuegos, $3.00 to $3.50;
port of Spain, Trinidad, $4.00 to $4.25; St.
Lucia, $3.75 to $4.25; St. Thornas, $3.50 to
$3.75; Barbados, $4.00 to $4.25; Kingston, $3.00
to $3.25; Curacao, about $3.75; Santiago, $3.25
to $3.50; Guantanamo, $3.25 to $3.50; Demer-
ara, $6.00 to $6.50; Bermuda, about $3.50; Vera
Cruz, $5.00 to $5.50; and Tampico, $5.00 to
$5.50.
The principal drain on vessels here, outside
of the natural slacking of vessel supply due to
destruction of so many ships at a time when
all except American shipyards are practically
idle on commercial shipbuilding, comes through
the demands of the grain export trade. Thirtj'-
five steamships were announced chartered here
the past week for loading grain on foreign ac¬
count.
The ore-carrying trade is also taking many
ships. The Maryland Steel Company alone is
taking a total of about 35,600 tons of ore a
week. The big prices paid by the grain and
ore trade are blocking tnany coal charters.
Buffalo Trade.
Buffalo, N. Y., November 18. — {Special Cor¬
respondence.) — Anthracite shipments up the lakes
have been small lately, owing to the lack of avail¬
able tonnage, and it looks very much as if the
total for the month would run .short of a year
ago. For the first half of this month the ship¬
ments were 213,400 tons, which would indicate a
falling off for the whule month of at least 100,-
000 tons, as compared with November of last
jear. For the past week the shipments were 80,-
too tons, which cleared as follows : Duluth-Supe¬
rior, 32. IDO ; Chicago, 25,500; Milwaukee, 16,500;
Ashland, 3,300 ; Fort William, 3,000. The leading
ports are getting nearly all the coal, for the at¬
tractive freight rates on grain are sending vessels
to the chief ports to a large extent.
The dolder and stormier weather of the past
week have stimulated the anthracite trade, which
is now quite fair for this time of year. The
companies are not getting as much coal as a
short time ago, owing to the shortage of cars, and
it is growing harder to make prompt deliveries.
The big demand just now is for chestnut and
stove coal. Further cold weather will no doubt
send a large number of orders and dealers are
being advised that if they delay they will find it
difficult to have their needs attended to promptly.
The bituminous trade is fair, but there is no
rush for coal at present, and business is below
normal for this season. This is due principally
to the lack of activity in a good many lines in
Canada, where the chief activity is centered in
the turning out of war material. An improve¬
ment in industrial lines in the domestic market
is reported and a pretty fair demand is now
springing up to the eastward. The shortage of
labor and of cars is making the market firm and
will probably continue to do so until the end of
the lake season, when as usual some letting down
for a time is expected. It is not thought, how¬
ever, that much weakness will develop in the mar¬
ket, because production has been light for some
time and nobody is loaded up with coal. A num¬
ber of leading companies are quoting maximum
prices in all grades and are confident that these
prices will be considered fair within a short time,
if they are not now.
The coke market is the strongest now in some
months, with 72-hour Connellsville foundry
bringing about $4.85. Prices considerably higher
are predicted for the near future.
Buffalo Trade Briefs.
George H. Bortz. manager of W. A. Stone &
Co., has gone back to Uniontown, Pa., leaving
the office in charge of Walter E. Auld, who has
been lately appointed sales agent.
D. D. Schenck, sales agent of the D., L. & W.
Coal Company, Toledo, and G. E. Boulton, sales
agent of the Lehigh Valley Coal Sales Company,
Detroit, were late visitors to the city.
D. W. McClennan, sales manager of the Alle¬
gheny Coal Company, is recovering from an at¬
tack of rheumatism and has been spending about
two weeks in the German Deaconess hospital,
though expecting to be back at the office shortly.
M. and M. Eorbes have succeeded to the coal
business of Arthur Forbes, who was killed by a
train two or three weeks ago at Clinton, Ont.,
where he had been a dealer for several years.
The members of the new firm are daughters of
the deceased.
Birmingham Trade.
Birmingham, Ala., Nov. 18. — (Special Cor¬
respondence.) — In some respects the coal trade
is exceedingly bright; in others not so good.
However, as a whole, the indications seem to
point to some increased production. Most of
this comes from the coking coal district, which
is having a large demand for coking coal be¬
cause of the very large demand for coke.
The steam trade is only fair. The Warrior
trade has been exceedingly good. The Ten¬
nessee company is making some good ship¬
ments down the river. The Sloss-Sheffield
Company is considering entering the river
trade.
The domestic situation nas not been so
good for the last week, but the coming of
frost has caused orders to come in rapidly.
The Sloss-Sheffield Steel & Iron Company
is considering a contract offered by the state
of Alabama to use from three hundred and
fifty to five hundred state convicts at the Flat
Top mines. The state will be in charge of
the convicts, feeding, clothing, and treating
them in times of illness. The company will
pay for labor on a tonnage basis for coal
mined, and for the labor on a day schedule
where mine work is done. The figures are not
obtained until the legality of the contract has
been passed on. The Flat Top mines are con¬
sidered among the best in the state.
The demand for coke is probably the largest
that has ever occurred since Birmingham be¬
came an iron making center. The big by¬
product coke plants have been working prac¬
tically on full time, barring accidents. Many
of the old bee-hive ovens which had been dis¬
carded have been brought back into use.
The announcement is made that the Sloss-
Sheffield Steel & Iron Company has made a
contract with the Pratt Consolidated Coal
Company for coke to be manufactured in the
ovens at New Castle, with washed Banner
coal. The Sloss-Sheffield Company is to take
150 tons of the coke a day. This will be used
in the additional blast iron furnace which will
be lighted Tuesday at North Birmingham. It
IS expected that Messrs. McCormack and Ram¬
say will fire up all their ovens at New Castle,
as the demand for coke is steadily growing.
The ovens in the Blue Creek region are ready
for operation', while the Yolande Coal & Coke
Company has been shipping all of its coke.
There is but little, if any, accumulation of
coke in this district. Prices are steady at $3.00
to $3.50 per ton.
“While I have charge of the operating de¬
partment and not the sales of the Sloss-
Sheffield Steel & Iron Company, my observa¬
tions are that the metal market has entered
into a period of prosperity that is going to
last for some time,” said J. C. Maben, Jr.
“Our preparations are for a steady production
of pig iron. This will necessitate a steady
supply of coal and coke. In fact, we have
found it imperative to make arrangements
for more coke than we clln manufacture' our¬
selves.”
PRICE.S FOR OCTOBER .AND THE BALANCE OF
THE YEAR.
F. O. B. F. O. B.
Bibb County Domestic — Mines. Birmingham.
Red ash Cahaba Uimp . $3.00 $3.30
Red ash Cahaba lump . 2.7,5 3.10
Red ash steam size . 1.20@1.35 Frt. rate 30c
Jeflferson County —
Fancy steam Pratt . 1.75 2.00
Run of mine Pratt . 1.20@1.25 1.45®!. 60
Mary Lee lump . 1.40@1.50 1.80@1.90
Black Creek —
Fancy steam lump . 1.75 2.05
Washed nut . 1.75 2.05
Washed steam . 1.35@1.60 Frt. rate 30c
Mine run . 1.35 @1.40 Frt. rate 30c
Jefferson Steam Coal —
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic Coal —
Carbon Hill lump . 1.75 2.15
Carbon Hill egg . 1.65 ' 2.05
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . . 1.90 2.35
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic Coal — -
Cahaba fancy lump . 3.00 3.30
Cahaba No. 2 lump . 2.75 3.05
Montevallo domestic prices range from $3.00 to $3.25.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at the mines.
Oklahoma Trade.
Oklahoma City, Okla., November 18. — {Spe¬
cial Correspondence.) — Smiles, smiles, smiles— at
the mines, in the wholesale offices, with the deal¬
ers over the state. This is the expression on the
faces of Oklahoma coalmen today. The cause?
Just this— the first killing frost of the season
came last night. Then some of the more hopeful
ones think they can see in today’s low hanging
clouds the augur of an approaching snowstorm.
Of this the writer is not so sure, however. He
has seen many promising snowstorm^ scattered
into thin air by the oncoming rays of an Okla¬
homa sun within a few hours. In Oklahoma the
old timers do not bank much on a blizzard until
it is at least a day old.
Practically' no coal at all has been moving
from dealers’ yards during the past two or three
weeks. The weather has been unusually warm
for November. Not at any time, day or night,
for almost a month has it been necessary to
wear an overcoat to be comfortable. In fact, it
has been no uncommon sight to see men on the
street and in the fields in their shirt sleeves
almost daily since the middle of October.
At Enid, which is the largest coal consuming
city in the state, two of the leading dealers re¬
ported this week that they were doing absolutely
nothing. One of these dealers, however, ran
from seven to nine teams during September and
most of October, which is exceptionally good for
a town of 17,000 people.
Enid, by the way, is the largest town in the
state not served by natural gas. There are
numerous wells, large producers, less than forty
miles northeast of Enid, but there has been little
talk of extending mains into the town. The citi¬
zens of this city, differing from the inhabitants
of the average town, seem to know that the
bringing of natural gas to a community is not
the establishment of heaven on earth and conse¬
quently have been content to leave the gas where
it is.
rHE Black Diamond
Vol. 5f
No 22 CHI
NOVEMBER 27, 1915 ^^3.00 Per Year
Factors Which Increase Cost of Mining Anthracite.*
The question of the cost of producing coal is
such an essential one to all operating men that
if they are not pretty well conversant with it
they do not hold their jobs very long.
The average anthracite operating head has com¬
ing over his desk twice a month an analyzed
detailed cost sheet for each and every mine open¬
ing, showing the detail in cost per ton for the
different items for mining coal, which individual
itemized cost is followed up with the greatest
of care with the foreman and division superin¬
tendents and they are held responsible for and
obliged to explain the slightest shade of increase
in these costs. The variation of a few cents
per ton on our production of our eight million
tons a year means the difference between profit
and loss.
The day is probably coming when, instead of
having a semi-monthly cost, we will have a
weekly cost, and it is not improbable that we
will eventually come to having a daily cost of
the production of coal.
The difference between profit and loss in the
mining of anthracite coal is becoming smaller
and smaller all the time, and as the conditions
affecting the production of the coal remaining in
the ground are becoming harder to meet, the only
manner in which a fair profit can be obtained
by the producing companies is by careful analy¬
sis of these costs and by efficiency in the use of
material and labor.
The Variable Seams.
There are, as you know, two great regions in
the anthracite coal fields — the northern and south¬
ern. In the southern field, which contains by far
the largest reserve of unmined coal, the coal
stands in deep basins on very heavy, sharp
pitches. The bottom of these basins are from
two thousand (2,000) to three thousand (3,000)
feet below the surface, and the problem of min¬
ing this deep coal is one not yet solved. We
know one thing, however, and that is the cost of
mining that coal by any possible known method
is going to be higher and higher as the depth
becomes greater.
In the southern region, due to the nature of
the coal veins, it is necessary to take out from
forty to fifty per cent of the refuse along with
the run of mine coal. This refuse has to be sepa¬
rated from the coal on the surface and stored
on a very limited surface area in that region.
It is apparent, of course, to you that this costs
a great deal of money. In the northern field, the
basins are more shallow and the veins flatter, but
as the coal is spread over a very wide area, the
question of transportation is the high cost.
The first item, of course, in the increase of costs
in producing anthracite coal, is that of labor,
especially in the northern regions, where the min¬
ing of the smaller veins is necessary. The con¬
tract miner and the contract laborer working in
these small veins have to make a living wage ;
they have to be paid a higher rate per ton to mine
the coal in smaller veins than in the larger ones.
The average figure for the northern anthracite
region is about thirty per cent of the coal in the
ground is in these veins of thirty inches or under.
We are trying to mine the small vein coal in the
same proportion that it bears to our total reserve
and that means, of course, an increase in the
cost of our coal on the cars.
Effect of Insurance.
The next increase which has to be faced is the
question of the employes’ compensation act
which goes into effect the first of January, 1916.
You, of course, appreciate that in any manufac¬
turing or textile industry, the risk is not so
great as in the mining of coal; the work is very
hazardous and the chances for negligence on the
part of the miner very great. Approximately
eighty per cent of the accidents in the anthracite
mines come through the carelessness of the men
themselves. Safety first organizations and first
‘A paper read before the New York State & Western
Pennsylvania Coal Merchants Association.
tGeneral superintendent of the Hudson Coal Company.
By C. Dorrance, Jr.f
Maintaining Extensive Underground
Railways Is One of the Problems — Cor¬
recting Complaints of Dealers Is Forcing
Up the Cost of Selling.
aid organizations have been developed toward
trying to keep this accident list down, but due
to the above mentioned fact of the carelessness
of the average employe, it is doubtful whether
our proportion of accidents will be materially
decreased from the present average.
Robbing work, which is the re-claiming of the
pillars, after the first mining of all coal, means
many accidents from fall of roof or fall of rock.
From the figures from which we have for The
Hudson Coal Company it appears that under the
existing conditions the expense of the probable
rates of liability insurance and the compensation
act will cost our company in the neighborhood of
$400,000 to $500,000 per year. Gentlemen, this
means approximately ten cents per ton added to
the cost of producing coal. As a large proportion
of our coal is used for steam purposes and the
selling price thus fixed by the price of bituminous
coal, it would be impossible to add this compen¬
sation cost to the steam sizes. Therefore, I esti¬
mate that the compensation law will mean an in¬
creased cost of from fifteen (15) to twenty (20)
cents per ton on the cost of domestic sizes of
anthracite coal.
The Water Problem.
Another enormous item in the increase of cost
of production is the question of freeing our mines
of water. As we go farther in the robbing out of
existing coal in the ground, the surface is dis¬
turbed and breaches occur which allow surface
water to enter the mines. In the anthracite
region today, the average figure shows that for
every ton of coal hoisted at the surface thirteen
(13) tons of water are pumped from the mines.
This figure is gradually becoming greater and is
never going to decrease. At our Coal Brook
and Powderly collieries, we have today a pumping
capacity of seventeen thousand five hundred
(17,500) gallons per minute. We pumped dur¬
ing last year year three billion (3,000,000,000)
gallons of water and produced from these oper¬
ations approximtaely nine hundred thousand
(900,000) tons of coal. In the production of this
coal we had to pump fifteen million (15,000,000)
tons of water.
The question of thin vein work is another im¬
portant item in the increased cost. In these small
thirty-inch veins of coal our gangways or main
haulage ways have to be driven of standard
height and width. This means the taking up and
mining a large amount of rock, and the mining
of rock is the most expensive mining that can be
done; at the same time giving us no return at all.
In regard to this thin vein mining we are doing
our best to keep our cost down by the use of
machine mining and the use of buggies. A buggy
is a small mine car which is run up the chamber
from the gangway and which is low enough so
that no rock has to be blown. We are obliged,
however, to pay the miner extra wages for min¬
ing coal with this buggy. The machine mining is
the undercutting of the thin vein and the trans¬
ferring of the coal so undercut and blown from
the gangway by means of a conveyor line which
is low enough so that no rock has to be blown.
Yesterday morning I went into one of the mines
of our neighbors at Scranton to look over with
some other engineers the question of the advis¬
ability of spending an amount of money on
the surface to clean and prepare the coal from
that mine. There is nothing left in this mine
except one vein of coal and we walked practically
the whole morning in this vein looking at the
quality of the coal and the quality of the vein
and nearly half the chambers in that vein were
six (6) feet of vein matter, out of which eighteen
(18) inches was coal. The whole six (6) feet
had to be mined and yet from that, less than
twenty (20) per cent was coal which could be
sent to market. You will appreciate what it means
to mine a vein of that character where the cost
of production is practically five times what it
would be if the vein were all coal.
Protecting the Surface.
The question of the protection of the surface
is also another factor in the increased cost of
production, due to the fact that, independent of
the law, we are not allowed to drop houses with
women and children in them, or have valuable
surface improvements destroyed. There is a large
proportion of territory where, instead of being
able to mine from seventy (70) to eighty (80)
per cent of the coal underground, we are obliged
to leave sometimes as high as sixty (60) per cent
of the original contents of the vein in places to
protect the surface. You will readily appreciate
what this means towards increasing the cost of
producing coal from these veins.
Underground Railroading.
Inside transportation is another important item
in the increase of our producing cost. When we
started to mine anthracite coal our gangways were
short and our transportation cheap; today at our
Olyphant colliery we have one hundred and twen¬
ty-five (125) miles of railroad track in the mines.
In all of the operations of The Hudson Coal
Company we have as much steel railroad mileage
underneath the ground as The Delaware & Hudson
Railroad has on its whole system on the surface,
running from Scranton to Montreal. The up¬
keep of this underground track is a great deal
more expensive than on the surface, as the track
is subject at all times to acid water, and the ties
rot quickly. We have in all our collieries con¬
tinually a force of men who do nothing else from
day to day but keep up the repairs of these inside
tracks.
Finally, one of the increases in the cost of
operation which you can readily appreciate, and
which I hope you do appreciate is the question
of the standard preparation of coal from a sales
standpoint. You have probably all read Mark
Twain’s book called “Puddin’ Head Wilson.” At
the head of one of the chapters there is a little
note about a man who was always finding fault.
“Puddin’ Head Wilson” said that this man when
he could find nothing else the matter with his
coal, complained that it contained too many pre¬
historic toads. The president of one of the an¬
thracite companies had this saying framed and
sent to each one of his sales agents. Now I want
all of you to especially appreciate what the oper¬
ating end of the anthracite business is doing, and
are willing to do everything in our power to give
you a uniform standard coal. If you will send in
your troubles through the sales department we
will see that they are investigated and that any
mistakes are rectified.
We have a force of men, at least three at each
colliery of any size, who do nothing else but try
to see that the coal goes to market in a uniform
state, within the limits of standard preparation
as developed and made permanent by the Phila¬
delphia & Reading sales contract of 1892, which
is the basis for the standard preparation of coal.
We cannot, however, give you gentlemen coal
that was mined thirty years ago ; that coal is
burned up and gone. We cannot give you the
bright, glassy, perfect, bright, diamond that was
shipped in former years ; we must confess that
the quality, appearance, brightness, and the frac¬
ture of all Pennsylvania anthracite coal is becom¬
ing poorer and poorer as time goes on ; the
cream of the anthracite is gone; we have got to
do the best we can with what is left. We appre¬
ciate that all coal that goes to market is not per¬
fect; and that our inspection departments may
make mistakes.
However, in this connection, I would say that
from figures obtained from the different com-
(Concludcd on page 433.)
426
THE BLACK DIAMOND
[November 27
Increasing the Flexibility of a House Furnace.
“'How to prove and increase the elasticity of a
household furnace” is one of the most fascinating
topics that any man ever tackled. It isn’t ex¬
actly a business ; it isn’t even a calling. It is a
great deal like golf. It is a fad which gets into
the blood. The more you play at it, the more
you want to play at it.
The results, of course, are worth while, because
they help in the end to save money. But, after
a man has been tinkering with his furnace for a
month or so he loses sight of the money he is
going to save and becomes interested only in the
results which he can get. This means to say that
the matter of reforming the house furnace has
not, yet, become one of the everyday practical
things of life; it is still in the game stage; men
play at it as a means of diversion rather than
as a source of profit. One of these days it will
become commonplace, because we will all have to
study it in earnest. Then the sport element in
it will be lost.
There is one western coal man who is a tre¬
mendous enthusiast on the subject. He devotes
to his furnace the time other men give to cards
and the theater. He will talk about it by the
hour and can tell precisely how to handle any
kind of coal or any furnace. He can tell how to
get the maximum results from the poorest coal
and the worst furnace. He can give you a for¬
mula by which you can fire bituminous coal alone
and this is worked out into a schedule. He can
tell you exactly what to do in the morning and
what to do at different periods throughout the
day. He can throw bituminous coal and coke
into combination and tell you what to do. Or,
he can tell how to fire coke alone. From his
conversation one would believe that anthracite
coal and its near relatives had no place in his
household economy.
After listening to him for an hour or so, the
question was put, quietly:
“What kind of coal do you use?”
“Oh, I use anthracite.” He said it without a
blush.
That man is interested in the “game” of re¬
forming the furnace. It attacks his mind as a
problem rather than as an every-day matter.
When it comes down to a matter of comfort and
of followiag the line of least resistance, he cuts
free of all bothersome experimentation and goes
back to the old reliable anthracite.
A Practical Point
However, the supply of anthracite simply will
not go around among all coal users in America.
A matter of 75,000,000,000 tons of anthracite coal
per year — forty per cent of which goes to the
steam trade — cannot warm every household in
America. It is the ideal fuel for those who can
get it, but a great majority of the people must
use something else. They must learn to use the
other coal economically and without befouling
their neighborhood with dense black smoke.
So, while we all confess that anthracite is the
best fuel known, we must learn to use the bitu¬
minous coals and coke. Whether we use them
separately or in combination is a matter of detail.
The big fact is that we must learn to use them.
That means that tinkerin.g with house furnaces
must not be merely an interesting game ; we must
make a purposeful study of it.
As recited in two preceding articles, the writer
has been experimenting with a combination of
Franklin county Number Two nut coal from
Illinois, and by-product coke of the pea size,
the two being burned in combination. The weather
at the time the primary experiments were made
was relatively warm. That is, the lowest tem¬
perature was about forty and, with the exception
of one occasion, the wind was not stron.g. There¬
fore, the heating problem was relatively simple.
Under those conditions it was not imperative to
get a fire started quickly.
Within the last week, liowever, the situation has
changed. The weather from being almost balmy,
became quite severe. Not only was it necessary to
get up a hot fire quickly, but it was necessary to
maintain a hot fire. To do both of these, the
firin.g practice was changed.
Heretofore the coke was fired first. When it
presented a glowing mass, the bituminous coal
was fired on top. When five or six shovelsful
of coke were fired, the fuel bed was compact and
even a strong draft would not cause it to burn
quickly.
To get a hot fire to meet the new weather
conditions, the process was reversed. That is,
Franklin county coal was fired first. This proves
to be an extremely free burnin.g coal. The old
Jackson Hill coal from Ohio perhaps is flashier.
Making a Fire Respond Quickly When a
Need Arises — Overcoming Drafts in a
House — An Underfeed Stoker for Use in
Small Plants.
but of course that is not obtainable now. Next
to that, the freest burning coal is the Jellico
product from southeastern Kentucky. As almost
everyone knows, this ignites almost by the use of
a match. Once ignited, it burns freely. New
River and Pocahontas coals get into action
quickly. Even so, they take more time to .get
up a hot fire than does Franklin county. The
latter comes somewhere in between Jellico coal
and the smokeless coals from West Virginia. It
is> a quick acting fuel and gives results almost
instantly, if properly handled.
The proper handling of it consists of firiag the
bed reasonably thin and then of leaving open the
stack damper, the ash pit door and the draft slide
in the feed door. If one follows those rules, he
can, in about twenty minutes, get the water, we
will say, from an early-morning temperature of
about 120 to 125, up to boilin.g point. At least
this record has been obtained in the one house
where these experiments have been carried on.
After the gas has had time to burn off the
Franklin county coal it is advisable to slow down
the fire. This is done by covering the glowing
fuel bed, to a thickness of about four or five
inches, with the pea coke. About four shovelsful
of coke are necessary in a fire pot which is
twenty-four inches across. After that is done, the
ash pit door and the draft slide in the feed door
can be closed and the new fuel bed will maintain
a temperature of seventy de.grees throughout the
house for a matter of five or six hours.
While firing the coal first and the coke on top
gives a quick fire, the coal is likely to clinker if
the coke covering is put on too soon.
Getting Rid of Soot
On several occasions the question has been asked
whether using Franklin county coal does not re¬
sult in soot. What the questioner had in mind
was the fact that Franklin county coal gives off
quite a great deal of volatile matter. The ques¬
tioner believes that in such a small fire pot it is
impossible to burn these gases before they reach
the relatively cool surface of the water tubes. He
believes therefore, that the cooling down of these
gases before they were burned must result in a
deposit of soot, both on the water tubes and the
side of the furnace.
The assumption is quite correct ; that is exactly
what happens. However, the soot remains but a
very short time, because so soon as the coke
starts to burn, it makes such a hot fire, without
flame, that the soot is burned off.
This does not mean to say, however, that the
water tubes do not have to be watched with ex¬
treme care. They do have to be watched or the
struggle for fuel economy is wasted. The ac¬
cumulation on them does not come so much from
the soot, however, as from the ashes.
Any man who runs a house furnace must no¬
tice that when he shakes down the fuel bed in
the morning quite a cloud of dust arisen If
he opens the ash pit door, some of this dust
escapes and rises to decorate his basement ceiling.
Sometimes, it may rise to decorate the upper
portion of his house — if he leaves the basement
door open. Even so, a certain part of it rises
through the fuel bed and must settle somewhere.
The most convenient place for it is the water
tubes. The writer just recently opened the door
into the water tubes after having neglected clean-
in.g them for a matter of about two months. _He
found an accumulation that was a good inch thick ;
in the aggregate it made nearly a half bushel of
dust. This served as a splendid insulation of the
water tubes; it prevented the heat frorn going
through this insulation to the water which was
to be heated.
In a word the writer was burning coal, rather
than heating water.
.\fter that experiment he is now making it a
point to use the scraper on those water tubes
once in three days. Perhaps this is a trifle too
often, but if one is after real fuel economy and
heat the little extra trouble is worth while.
The Effect of Wind
On last Sunday the wind was quite stron.g. The
outside temperature was around twenty-eight.
With the high wind, the day was really cold. All
day long it was a constant strug.gle to keep the
house temperature up to anything near what it
should be.
Instead of a couple of firings a day, which had
been necessary theretofore, the furnace was fired
at half-past six, at eleven, at half-past three, and
at half-past six, with an additional firing when
the banking was done at about eleven o’clock at
night. However, even with this free use of coal,
it was not possible all the time to keep the house
warm, even though the water in the pipes was
always at boiling point and even though the boil¬
ing point was twenty degrees higher than is eco¬
nomical in a hot water plant.
It soon became apparent that while more than
enough heat was being generated, it was being
blown away by the house drafts. That is, the
windows were leaking cold air and with the leak
in the back offset by another one in front, the
'cold air passed through the house, carrying the
heat with it. There was nothing to do, therefore,
but to insert a barrier in the path of the draft.
This was done by closing the intervening doors.
Down stairs the kitchen was shut off from the
dining room and the living room was shut off
from the sun porch. Upstairs all the doors lead¬
ing into the central hall were closed. With that
done, the average temperature' of the house rose
very quickly five degrees, while it was possible to
slow down the burniag of coal in .the basement.
Incidentally this is the reverse of the dead air
proposition put up, a month ago, by George W.
Reed, who said that on one occasion his house
w'ould not heat because the air had become dead,
due to the fact that the windows were too tight.
In this connection another interesting thing was
noted. Everyone knows that the stairway in the
house is an open chimney; the heat passes from
the downstairs through the stairway to the up¬
stairs. In most ordinary houses, the upper rooms
are much warmer than the lower.
In this particular house the stairway cannot be
closed off. The assumption naturally would be
that all the heat would rush up that “chimney”
and warm up the upper part of the house. How¬
ever, half way up the stairs there is a landing
on w'hich there are three good sized windows.
It was found that this landing was the coldest
spot in the house. The windows were leaking
cold air. The lower portion of the stairway was
quite hot. The upper portion was quite cold.
That is, the cold air coming in from those win¬
dows presented a barrier to the passage of heat
and thus neutralized the effect of the warm air
rising. Until storm sashes could be put on the
windows, the blinds were drawn and thus a good
part of the heat passing up the stairway was
saved.
Increasing Circulation
Gordon Buchanan, of the Old Ben Mining Cor¬
poration of Chicago, knows Franklin county coal
in all of its moods and tenses. This is so because
he has experimented with it so often. He called
the writer’s attention to the fact that this is a
particularly free burning coal. His first experi¬
ment, alon.g this line, was made one day when the
fire had been allowed to become so low that it
was a question whether fresh coal could be fired
without the use of kindling. He wanted to give
Franklin county coal a severe trial and so he
threw a couple of shovelsful into the fire pot
and opened the drafts. In a few moments it was
burning freely.
The writer wanted to give this coal a test along
this same line. The house had been closed for
several days while the family was away. The fire
in the hot water heater had been allowed to go
out. He wanted some hot water quickly, so he
used about half of the kindling that is required
to start a fire with anthracite pea coal and put
in some Franklin county number two nut. In
about one-fourth of the time that it takes to get
hot water with anthracite coal hot water was
available at every faucet in the house. In fact,
the water became so hot that it was necessary to
check the fire by closing all the dampers and
partly removing one of the lids of the stove.
Mr. Buchanan has a way of getting the great¬
est amount of heat in the upper portion of the
house. He starts with the assumption that it is
impossible to transmit to the water pipes all of the
heat from the furnace. Therefore, some of it
must escape into the basement. There is almost
enough of this to take the chill off that section.
If the pipes are uncovered, they radiate heat.
Thus the primary energy of the coal is devoted to
heating a part of the house where nobody lives.
If the basement window is left open for ventila¬
tion, a good part of this heat escapes without
doing any work.
(Concluded on page 433.)
No. 22]
427
THE BLACK DIAMOND.
Getting Down to Details While Talking Costs.
About eight years ago, the Chicago Coal Mer¬
chants’ Association began to discuss the ques¬
tion, “What Does It Cost to Do Business?’’
At that time it was a youngster. It had not
been organized much more than a year, and had
not found its bearings. It was in the position of
many other associations; it was talking about
things rather than doing them. Therefore, it
talked about what it costs to handle coal and
then talked some more. After a long, long de¬
bate, nearly everyone in the association came to
realize that it costs far more to handle a ton of
coal than they had supposed. Some men had be¬
lieved it cost them sixty-five to seventy cents,
only to find that it cost from ninety cents to $1.
Still with this fact staring most of them in the
face, the only thing that the young association did
was to talk about it.
Just a few months ago Homer D. Jones, vice-
president of the association,' decided that it was
about time to stop talking and to do something.
When it came to the question of taking action,
Mr. Jones discovered another thing which he
expresses as follows ;
"The cost of doing business includes many
items. For example, there is the cost of the
degradation of coal ; the cost of depreciating
the plants and appliances; the cost of making
sales; the cost of cartage; the cost of adminis¬
tration, etc. So long as we try to include all of
those things in a general discussion we get no¬
where. I may be thinking about the cost of
degradation, while some other fellow is talking
about the cost of selling. In a word, the subject
is entirely too big to discuss as a whole. If we
are going to get any place, we must discuss in
detail some of the subdivisions of the big sub¬
ject.”
Suiting the action to the word, Mr. Jones called
together some dozen or more of members of
this association who are really interested in im¬
proving their cost accounting system. They went
into a sort of executive session in which it was
resolved to devote attention solely to just one
small branch of the big topic. They decided
to meet at two o’clock in the afternoon and to
stay in session until they had arrived at a defi¬
nite understanding of a simple way to handle
that detail.
The suggestion came from several men at once
and so it was decided to devote the first meet¬
ing to delivery tickets. They wanted to get a
form for a delivery ticket that would contain all
the information for the buyer and at the same
time would fit into the general bookkeeping sys¬
tem. Before they parted they had really laid
the foundation for both a simplified System of
bookkeeping and a simplified system of cost ac¬
counting.
For example, they made out a delivery ticket
in triplicate. One of these was given to the
driver as his scale ticket to deliver to the consu¬
mer. The original was put in an envelope and
forwarded by mail to the buyer as his bill. The
third copy was turned over to the bookkeeper
as his record of the transaction.
This was the result of one meeting only. These
retailers who are interested in simplified cost
accounting are going to continue to discuss other
details until they have got simple forms and sim¬
ple ways of keeping accounts for each branch of
the subject.
When they have discussed these various sub¬
jects and have thus come to have a simple meth¬
od of doing everything, the complete system will
be turned over to the Chicago Coal Merchants’
Association, which in turn will be asked to recom¬
mend it to all the retailers in Chicago. In that
way, they figure that every retailer will have a
means of knowing precisely what it costs him to
do business and therefore competition, although
it may be keen, will no longer be ignorant.
This method introduced in Chicago by Mr.
Jones is capable of duplication in every other
city of the United States. He starts out on the
theory that all of the retailers need not be pres¬
ent or interested at the start. Rather if only
two or three can get at it first and work out these
details, it will be worth while, because the oth¬
ers would then know what is coming out of it and
are almost sure to follow the example.
How a Delivery System Brought Results.
Unie Clark, owner and manager of the Clark
Cash Coal Company, of Elkhart, Ind., attributes
the patronage he enjoys today in smokeless coal,
not so much to the coal itself but more to the
manner in which it is delivered.
Mr. Clark having been employed by a retail
coal concern before entering business under his
own name, knew that smokeless coal was a hard
one to deliver satisfactorily, and most of the dis¬
satisfaction upon the part of customers came
from this source.
In remedying this fault, all drivers employed by
the Clark Cash Coal Company were instructed to
distribute evenly the fine and lump coal in each
load. That is, if one side of the shed contained
quite a bit of fine and small coal and the other
side lump, to take a scoop full of the fine coal
to every two or three of the lump, and in this way
eliminate anv chance of the consumer getting a
load of all fine coal. Drivers were further in¬
structed to use the utmost care in unloading the
coal and in putting it in the customer’s bin.
Mr. Clark does not believe in hiring any man
who comes along when business is greater than
his regular men can handle it, but prefers to de¬
liver enough of each order to tide each customer
along until the rush is over and his men and
teams can handle the business. In this way, he
not only retains work enough to keep his men
busy during the slack times, but also does not
have to employ extra help during business rushes.
Thus in hiring regular drivers and continually
instructing them to handle the coal carefully, Mr.
Clark has managed to eliminate the trouble and
dissatisfaction arising from the poor delivery of
smokeless coal, and attributes the patronage he
enjoys in this one coal alone to this fact.
How Mr. Clark took advantage of a recent
industrial parade in his city to advertise his coal
and his company, is shown by the photograph
herewith. The float of the Indian girl and camp¬
fire scene was one of the most effective in the
parade, and caused considerable comment among
the onlookers. The papoose was an exceedingly
Float of Clark Cash Coal Co., in Recent Municipal Industrial Parade.
energetic one, and brandished a tomahawk at all
the bystanders.
The Clark Cash Coal Company’s yard is located
in the very heart of the city, and attracts many
farmers and teamsters to it as a public scale.
Mr. Clark takes advantage of the scale tickets he
issues in public weighing to advertise his coal by
printing his trademark on these tickets. This
Clark Cash Coal Company’s Trade-Mark.
trademark appears in all of the Clark Cash Coal
Company’s advertising, and though we do not
know whether the name Clark and the dog have
any connection with Champ Clark and his famous
“Hound-dog,” we think that it is a most attractive
and effective one.
Appeals to Women.
As Mr. Bernstein says ; “Time was when
women did not do the family buying because it
was not safe. It took the mental equipment of a
Pinkerton and the physical qualities of a Jess
Willard to buy and not be cheated. But it is
different now — women do eighty per cent of all
“If I Were a Man”-
=a lady said to me tlie oilier day, “I would let my wife
buy the coal, for she certainly ought to kuow the kind that
is best and cleanest and cheapest for the home.”
Let’s think that over, men. Maybe lhatgood lielper td
ours thinks the very same thing, but is too good to say 1*0.
It's characteristic of women to hold secret many ?ucb ihots.
The fact that a woman is overly particular about the
C'»al she uses for cooking purposes, especlolly, is evidenced
hy the borulreds of housewives using Bernelein’e extia
clean McAlester Lump.
A (rial wifi do. phrme 402.
►ERNSTEll
PHONE 492 1(17 N. CHOCT.WV
Appealing, to the Woman Buyer
family buying, and just how much they influence
the other twenty per cent we do not know.”
Realizing that women purchase eighty per cent,
of the domestic coal as well as other household
necessities, Mr. Bernstein of El Reno, Okla., di¬
rects his advertising appeal to the “Lady of the
House.”
Mr. Bernstein is generally known as the most
persistent advertiser of coal of any dealer in a
town of 8,000 in the country. He uses thirty
inches a week; that is, ten inches in three dif¬
ferent dailies, carrying a different advertisement
in each paper on different days.
Starting in business in El Reno three years ago
a stranger, he has built up his business until now
he is the largest coal dealer in the city, notwith¬
standing the fact that one dealer has been in
business there for over twenty-five years, and has
plenty of capital behind him. Mr. Bernstein at¬
tributes his success almost entirely to his adver¬
tising.
One of Mr. Bernstein’s recent advertisements
in which he appeals to the woman buyer is shown
herewith.
Another rich coal field was opened in West
Virginia when the Consolidation Coal Company
of Fairmont reached the coal at its Carolina
mine. The shaft from which the coal will be
taken is 500 feet deep. Last spring when the
Consolidation Coal Company decided to operate
mines at this point the contract was let to the
Dravo Contracting Company of Pittsburgh. The
contractors began work abont the middle of May,
expecting they would have the shaft down by
January 1, 1916.
428
THE BLACK DIAMOND
[November 27
Can Car Shortage Be Avoided by Storing Soft Coal?
At the last annual meeting of the International
Railway Fuel Association, one of the questions
up for discussion was the matter of storing coal.
It will he remembered that this subject was
suggested for discussion by C. G. Hall, secretary
of the organization, who approached it from the
point of view of what is good railway economy.
That is, he believes if coal can be put in storage
in the summer, it will lind employment for rail¬
way cars which otherwise will be idle. Being in
storage at point of consumption, it will be avail¬
able when winter comes and therefore it will not
require so many cars to handle the winter’s sup¬
ply. His theory is that coal storage will simplify
very much the matter of railway transportation.
Now that winter is approaching and there is
an excess demand for cars and a likelihood of
coal shortage, some railway men are wishing that
they had followed the advice of Mr. Hall and
that they had begun to store coal. However, it
is too late to talk about such things now, because
it will do no good for this year. Even so, a dis¬
cussion of the subject may help to avoid a dupli¬
cation of this year’s experience at some time in
the future.
A short time ago we published a portion of the
report of this fuel committee or that relating
to the eastern section of the country. What fol¬
lows is a report of the same- committee relating
to the southwestern district.
Southwestern Group.
1. It is the consensus of opinion of execu¬
tives of railroad and mining companies that Mr.
Hall's reasons for, and the desirability and ad¬
vantages of, storing coal (which were reported
at the 1914 convention), are correct.
It is generally agreed that lump and nut coal
with at least 25 per cent of slack removed is the
best kind of store, that is with the coals which
will store without great danger of spontaneous
combustion.
The .grade of coal produced in Illinois (mostly
referred to by Mr. Hall) differs from that in
.Arkansas, Kansas, Missouri, Oklahoma and
Texas. Owing to the “make-up” of the coal pro¬
duced in this territory (the Southwestern) the
possibilities and problems vary. However, they
may be put under one of two classes — the Texas
and part of Arkansas coal, and the Oklahoma,
Kansas, Missouri, and Northern Arkansas coal.
All who have tried to store Texas and part
of the Arkansas coal have found that it is a
failure on account of the liability to spontaneous
combustion — one pile lost about 50 per cent in
value within a year, the coal being stored during
cool months, and in the summer one switch en¬
gine was kept busy extinguishing the . fires.
.All other coals in the second territory — Okla¬
homa, Kansas, Missouri, and Northern Kansas
— can be stored and the loss in heating value
and weight will be from two per cent to eight
per cent.
The greatest danger from spontaneous _ com¬
bustion is caused when the coal is stored in the
open during the hottest months of the year —
July and August. If the coals in this territory
were stored in May, June, September, and part
of October, the danger of firing would be greatly
reduced, and practically all conditions make this
possible.
No attempt has been made to store any of
the southwestern coals under water except in
small quantities by two or three roads. How¬
ever, this would practically eliminate all danger
of firing, and the loss in weight would be less
than three per cent with most of the coals.
2. It was suggested by one mine operator that
storage at the mine could be obtained as follows ;
“.At strip pit mines practical storage could be
accomplished by leaving a small covering on
the coal. If areas operated were large, from
50, 000 to 100,000 tons could be partially un¬
covered in the summer and thus carried in stor¬
age without using the water covering method,
and this, I believe, could be done at only small
additional cost to reimburse the steam shovel
operator for returning and uncovering and load-
in.g coal when season requires. A strip pit could
be made to double or treble its daily production
with only the one loading cost, and this would
also reduce breakage.”
This was the only suggestion received by the
committee covering storage at the mines.
It is the opinion of practically all men in this
territory that it is better to store coal at the
railroads’ larger coaling stations. Some of the
reasons follow:
The coal would be handled only twice, un¬
loaded from cars and reloaded on tenders.
This Article Contains the Findings of a
Committee of the Railway Fuel Associa¬
tion as to Coals from the Southwestern
Group of Mines.
The facilities at the lar.gcr coaling stations are
sufficient to handle larger amounts of storage
coal.
Usually there are enough laborers employed
around coaling stations who could be used in
storing coal part of the time in addition to their
other duties without very large additional ex¬
pense, while at the small coaling stations an e,xtra
force would have to be employed and it is not
always satisfactory nor profitable to do so.
If there is at least one large stora.ge pile
or station under each Division Superintendent,
each Superintendent is then responsible for the
reloading of the storage coal and does not have
to depend upon some other division to load this
storage coal for him.
Most of the unloading is done by hand, some
hy clam shell, some by dumping methods. Re¬
loading in cars or tenders is done by clam shell,
although some use hand labor. The clam shell
.gives more satisfaction and is cheaper than other
methods of reloading.
Only one system seems to have made a stand¬
ard of any device for handling storage coal, and
that is the clam shell.
The cost of handling storage coal varies
greatly.
The best li,gures obtainable are as follows :
Tons coal handled, 84,378.
Average
per Ton.
Cost to unload . $3,576.59 $0.0424
Cost to reload . 2,320.15 .0275
Miscellaneous and tracks . 2,663.22 .0315
Total cost . $8,559.96 $0.1014
Another system reports that the total cost to
unload by —
Clam shell . 5c per ton
By hand . 7^c per ton
Reload, clam shell . 5c per ton
Reload, by hand . 7yic per ton
Total average unloading and reloading, in¬
cluding supplies and walls, where necessary,
by-
Clam shell . lOc per ton
By hand . 15c /per ton
Other figures vary from 15 cents to 30 cents
per ton for total cost of handling stora.ge coal.
3. As far as we could determine, there have
been no locomotive tests made with storage
coal in comparison with freshly mined coal.
Some roads have mixed fresh coal with coal
that has been in storage for several months and
have had good results, while some other roads
have used a little crude oil with storage coal by
throwing several bucketsfull over the coal when
it is put on the tender, both methods producing
results practically as good as obtained from coal
just from the mines.
One company’s analysis showed a loss in B.
t. u. of about twenty-five per cent on account
of so much spontaneous combustion and slack¬
ing. This is an exceptiorlal case, but it is likely
to be the rule with Texas and some of the
Arkansas coal.
A Power Hoist on a Trailer Truck.
■A ten-ton hydraulic hoist trailer has been put
on the market by the Knox Motor Associates,
who manufacture the Knox tractor. This com-
liany is probably the first of the automobile tractor
companies to put on the market a trailer having
dumping equipment with capacity for ten tons.
Among the coal companies using this power hoist
trailer is the Schmadeke Coal Company of Brook¬
lyn. In sending in their second order, this com¬
pany wrote :
“\\’ith this order we wish to express our com¬
plete satisfaction with the manner in which you
have worked out a proposition of a power hoist
trailer, and also our general satisfaction with the
result shown by the tractors in the three years
that we have been using them. We have found
them profitable in the displacement of horses for
long haul distribution of our goods, even con¬
sidering the fact of idle time while unloading at
delivery point, which in the delivery of coal is
necessarily great.”
The illustration herewith shows the trailer at
the angle to which it can be raised by power
hoist. They are made up to capacity of ten tons.
The rear wheels are forty by ten inches, the rims
three and one-half by nine and one-half and the
tires are one and one-quarter inches weldless,
locomotive type. The body is made entirely of
steel. The floor is one and one-quarter inches
thick. The sides, front and back are of ten
gauge steel, well braced, drilled and hot riveted.
The frame is six-inch channel steel, well braced
with cross members and tied with large gussets
drilled and hot riveted.
The hoist is the Wood hydraulic hoist, and all
necessary connections are of the Knox make with
their own make of pump on transmission cover.
The hoist will raise ten tons to full height of
lift in fifty seconds. Angles of dump approxi¬
mately thirty-five degrees. The tail gate is auto¬
matically released and closed by dumping action.
The hoist is controlled by lever operated from
the driver’s seat.
The weight is 7,500 pounds. The inside box
dimensions are 144 inches by eighty inches by
thirty-one inches. The height of the top of the
body from the ground is eighty-five inches ; top
of hoist from the ground, 107 inches; rear of
body from the ground in dumping position. The
wheelbase is ninety-six inches.
The Power Hoist Trailer Used With the K^nox Tractor.
No. 22]
THE BLACK DIAMOND
429
Stricter Compliance with Mining Law.
Writing articles for publication has been a
very small part of my life work, though I have
always been a very interested reader of the
many good articles published by the mining jour¬
nals.
Just at present we are putting on full steam
after some eighteen months of only thirty per
cent operating time. At present we are pretty
well supplied with everything but good miners,
and much of my time is occupied trying to make
as good use as possible of what I have.
Efficiency and safety must always be linked
together, for you must always have efficiency
to pay the cost of making coal mines safe for
men to labor in. A great deal is being said
and done with the object of safety first. Some
men have an idea that it is better to advance
safety by doing as little work as possible, arguing
that the less work the less risk. But the ex¬
ecutive officer at the mines has the idea of pro¬
viding ‘‘safety first” in such a way that greater
efficiency results from every step taken to pro¬
vide more safety.
After some twenty-three years experience as
a mine official I have imbibed some very positive
ideas and one of these positive notions is ; That
if every mining superintendent and mine fore¬
man of this state would live up to all the rules
laid down in the present mine laws and rules of
the good state of Pennsylvania, and, where he
finds they do not go far enough to suit his
case, just add other rules, a great reduction of
human suffering would result.
At some mines the presence of the mine in¬
spector excites everybody in charge. Why? These
men know that the trip rider cannot run by the
side of the trip without getting crushed by the
rio — unlawful. The men cannot carry their tools
in or out, for the trolley wire seems to be every¬
where — unlawful. The driver or trip rider can¬
not get the brakes on the run-away cars in the
butt entries, for posts, rails, ties or other ma¬
terial lies everywhere — unlawful. And we might
cover all the causes of accidents and find in most
cases, that safety is best provided for in the
strict enforcement of our mining laws. In some
mines with high coal, light grades, good roof, it
is easy to provide both safety and efficiency, but
with only thirty-six to forty inches of coal, heavy
and variable grades, and in many sections bad
roof, safety and efficiency are harder to effect.
For the last two years we have had no fatal
accidents at Chickasaw, and no accident more
serious than a broken leg. Our object and the
ideal of this company is the strict compliance
with the mining laws, for we do not want acci¬
dents as they do not pay.
Thomas Hale, Superintendent.
Allegheny River Mining Co., Chickasaw, Pa.
Cokedale Social Club.
Editor, Black Diamond:
I am glad to advise you what our company is
doing to increase safety and efficiency. We are
members of the National Safety Council of Amer¬
ica and through this council are constantly ad¬
vised of the safety measures adopted and being
tried out by others. Such as apply to our special
needs are retained, others are carefully discussed,
gone over and stored away for a time when per¬
haps we may need the same.
Through this council we also receive moving
pictures of safety first and these we show once
a month free of charge to our men.
Safety and welfare meetings are held regularly
once a month, at which time all foremen, fire
bosses, inspectors and outside foremen are pres¬
ent. Our accidents for the month are very care¬
fully discussed and suggestions for the prevention
of same in the future carefully studied out. At
this time I am not in a position to give exact
figures as to our accomplishments, however, there
is a wonderful improvement noted along safety
lines both above and underground at this plant,
all of which, of course, has decreased our ac¬
cidents considerably.
About two years ago the Cokedale Social Club
was formed, an institution furnished by the
company for its men as a place of rest and recre¬
ation. The club contains two bowling alleys, pool
and billiard tables, soda fountain, writing, reading
and rest room combined, same being furnished
with properly selected furniture appropriate for
such a place. The club house and equipment is
always kept in first class condition by a regularly
employed attendant. Bowling and billiard tourna¬
ments are held regularly, in all of which men
of all classes and nationalities enthusiastically
partake.
In conjunction with the social club there is a
night school where instruction is given in reading,
writing, civil government, etc. This night school
is attended principally by foreigners and that
the school was successful was proven conclusively
in the case of one man who neither read nor
wrote the English language previous to attend¬
ing these sessions and was frankly admitted by
the Department of Labor and Immigration In¬
spector for naturalization papers to be one of
the best prepared men that he had ever had oc¬
casion to examine.
Appropriate safety signs are placed about the
plant for the guidance of all employes and the
wearing of goggles by our mechanics is com¬
pulsory. We have accomplished much along this
line during the past and in the future we hope
to conquer it as far as is possible.
D. D. Dodge, Superintendent.
Carbon Coal & Coke Co., Cokedale, Col.
Getting Greater Efficiency.
Editor, Black Diamond :
The following items have a direct bearing upon
the subject of greater efficiency in coal mining
and they are taken from the address of General
Mining Superintendent Thomas Thomas of the
Lehigh Valley Coal Company at the annual out¬
ing of the Social Association of the Lehigh Val¬
ley Company held August 21, 1915.
Special attention should be given to the miner
working at the face. He should be surrounded
with all the protection possible as it is evident
that only by such means can we hope to reduce
the number of accidents at that point. The miner
must be made to understand that his working,
as well as his moral conduct, is amenable to the
laws of the country and that he must govern
himself accordingly.
Further, the foreman and his assistants should
keep in close touch with all working places, that
they may know the actual conditions throughout
the working day.
Recklessness or carelessness on the part of
any workman should not be tolerated as there
is no doubt that a .great number of accidents
are caused by such practices. The inexperienced,
however, should be given caution and the bene¬
fit of your wide knowledge of the work in which
he is engaged.
While safety to the workmen is the first con¬
sideration, successful operation is a question that
must be given serious thought by the officers
in charge. By “successful” we mean efficient op¬
eration. “Efficient” means effective, competent
and causative. Successful operation is, therefore,
to a great extent dependent on the personal effi¬
ciency of those in charge. They should cause, or
put into effect, a working system that would be
productive of the best possible results.
Close attention should be given to the details
as they all enter into the general results. Among
the important details I will mention :
(1) Ventilation. Special attention should be
given to the air currents. The air should be so
conducted that all parts are fully ventilated. Thus
will the danger from gases and the inconveni¬
ence from smoke be reduced to a minimum, and
the miner and his laborer be enabled to work-
better.
(:D Drainage and Tracks. Drainage should
be given close attention in order that the road¬
ways be free from water and mud. The tracks
should be kept in first class condition in order
that you be not compelled to use a part of your
force, that could be otherwise engaged, in replac¬
ing cars.
(3) Motive Power. Whether your source of
power is electricity, compressed air or mules, it
should be looked after keenly. The compressed
air and electric engines should, at the start of
each day, be in shape to go through the day’s
work. The men in charge of these machines
should be required to keep them in first class
working condition in order that there be no de¬
lays on account of a breakdown during the day.
Mules should not be overworked. With roads
or tracks in good condition, and the work done
by the mules commensurate with their weight,
there is no reason why we should not have a
great reduction in the percentage of mules laid
up in the stable on account of injuries.
(4) Mine Cars or Rolling Stock. The condi¬
tion of the rolling stock is one of the greatest
factors entering into the efficient operation of a
coal mine. While the work of keeping these cars
in repair is in the jurisdiction of the outside
foreman, there should be a complete understand¬
ing between the inside and the outside men on
this question. Both should realize that the best
results can be obtained only by having the maxi¬
mum number of cars at the colliery in good work¬
ing condition and in service. The car that comes
out of the mines in a crippled state, or in need
of any repairs, should be given prompt attention
by the outside men and returned to service in the
quickest time possible. You should give this
matter very serious consideration as the loss due
to an accumulation of crippled cars is very great
indeed.
(5) Distribution of Mine Cars. It is very
necessary that the mine foreman keep in close
touch with the number of cars at important points,
such as foot of shafts, slopes and on turnouts.
A shortage of cars should not be felt at those
points, but rather nearer the working faces. As
far as possible it should be so arranged that
cars are not placed for loading unless the per¬
sons receiving them are prepared to load them
within a reasonable time. Very often a car
shortage is produced by injudiciously placing cars
without first ascertaining the prospects of getting
them loaded.
(0) Breaker Efficiency. The efficient opera¬
tion of the breaker is of vital importance to the
general efficiency of the colliery. The outside
foreman should, as far as possible, arrange the
plant so that the breaker operates continuously
while coal is being produced. Petty delays are an
abomination and as such should not have place
in our plans. The exercise of foresight and
good judgment, we believe, will reduce them to
a minimum.
(7) Cleanliness. The breaker and the outside
surroundings should be kept in a clean and pre¬
sentable condition at all times. A clean house
generally deqotes an efficient housekeeper.
Our organization holds a very creditable posi¬
tion in the mining world, and the ability and
loyalty of its members is proverbial. These at¬
tributes go hand in hand with success, but with
greater efficiency we can expect a higher degree
of success. So, let “GREATER EFFICIENCY”
be the slogan of all.
Wilkes-Barre.
Comparison of Belt Splices.
At the h'ield Day exercises of the Lehigh Val¬
ley Coal Company one of the contests was to
join the ends of a broken four-ply rubber belt,
sixteen inches wide, the splice to be made as
quickly as possible and all splices to have ap¬
proximately the same strength as the original
belt.
Each team kept its method of splicing secret
and the result was that no two splices were alike.
The following criticism of the several splices
illustrated was given by Mr. Paul Sterling, me¬
chanical engineer of the Temple Valley Coal Com¬
pany :
The following brief remarks are made on the
assumption that: First, only a four-ply rubber
belt is considered ; second, that the minimum
belt-pulley diameter is equal to six times the
number of plys in the belt (hence for this four-
I)ly belt the minimum diamter is 4 x 6 or 24
inches) : and third, that in case special plate or
clip fasteners are used, they are to be curved
the proper diameter of the pulley.
A butt-lap spice, in which a portion of the
belt is used for making the lap joint, is satis-
430
THE BLACK DIAMOND
[November 27
Danger of a Coal Shortage in the Northwest.
factory as far as strength goes; it develops,
when properly made, nearly the strength of the
original belt. The thickness of the belt, however,
has been increased at the joint, from four to
eight plys and instead of a twenty-four-inch pul¬
ley the diameter should be forty-eight inches,
rile result is that every time this eight-ply belt
passes over the twenty-four-inch pulley the bend¬
ing stress or power required to curve this extra
thickness of belt around the pulley is increased,
thus causing a loss of power or increasing the
total power required. This loss may seem small,
but in a breaker with fifty or more belts running
:;,(K)() feet per minute, the loss becomes important,
b'urthermore, should this belt have a reversed
licnd over the carrying or stress pulley the splice
cannot be used on account of the inability of
the lap to ride smoothly over the stress pulley.
The use of belt clips or hooks are recommended
only for a very quick and temporary repair. Such
joints do not develop the full strength of the
belt, but the ease of applying the clips warrants
their use when the time required for making an¬
other form of splice would cause a serious de¬
lay. Since the curve of the clip is made to con¬
form to the radius of the pulley, the additional
bending stress in passing over the pulley, due
to the thicker section of the belt at the splice, is
eliminated. The apparent saving, however, is
offset by the abrupt end in the belt when it is
pulled straight. Like the butt-lap splice this one
cannot be used over a stress or carrying pulley.
The clamped-joint splice has only two claims
to recommend it. It will develop approximately
the strength of the original belt, and will run
smoothly over the pulley without increasing the
bending stress in the belt. It has the objection
that it cannot run over reversed belt pulleys as
the two previous splices. The “bend,” is also
hard on the belt and is often the cause of future
failures.
There is loss of power in this splice often over¬
looked, due to the splice cutting through or fan¬
ning the air. As an example, take a sixteen-inch
belt running at 4,000 feet per minute with a splice
projecting two inches high. Four thousand feet
per minute is equal to forty-five miles per hour,
or is equal to a wind blowing at that velocity,
which gives a pressure of twelve pounds per
square foot.
The area exposed to this wind pressure of
twelve pounds is sixteen inches (wide) times two
inches (high) equal to thirty-two square inches
or twenty-two one-hundredths square foot. Fig¬
ured in horsepower this loss equals :
.22 (sq. ft.) X 12 (lb.) x 4000 (ft. per min.)
33000 (ft. lb. per hp.)
=; .33 horsepower loss.
If there are many belts with this kind of a
splice the total loss would be considerable. This
loss also occurs with the butt-lap splice and is
directly proportional to the exposed area and
velocity.
The hinged splice is probably one of the best
splices for all general purposes; the construc¬
tion of the splice is such as to bring the hinge
or bend point of the splice on the approximate
neutral axis of the belt. This permits the
splice to pass over the pulley without increasing
the power due to increasing the bending stresses.
The splice may be bent in either direction, con¬
sequently the belt may have reversed bends or
run over stress pulleys. The objection to this
splice is that it does not develop the strength of
the original belt. This objection may be neg¬
lected, provided the belt used is sufficiently wide
to allow for the efficiency of the splice.
There are other methods of belt splicing, such
as lacing and lap splices. Both of these methods
are desirable and especially so when a flexible
joint is required due to the diameter of the pul¬
ley being less than the ratio given above. The
foregoing rule for the diameter of the pulley
in relation to the plys of the belt is recommended
for general use, though in extreme cases the
ratio may be reduced to four to one.
Belt splicing has not been receiving the full
attention it deserves. There is no doubt that
many costly delays have been due to inefficient
splices, not counting the many petty delays which
in the aggregate mean a big loss of time during
the year. In order that we may all profit by les¬
sons taught us at our last outing, it may be well
to summarize the result, keeping in mind that the
contest was only to demonstrate an emergency
belt splice.
First, for large and permanent belt drives, such
as main-drives, use the butt-lap splice, using ce¬
ment for joints and copper rivets or belt bolts.
Second, for light drives, where the belt width
is sufficient (say fifteen per cent of that required)
use the hinged joint splice or rawhide lacings.
Here is one point about the short coal supply
which every retail coal dealer in the west should
know. It was brought out just recently by T.
B. Davis of the Davis Coal & Coke Company, No.
1 Broadway, New York. In substance, he said;
“The northwest this year is most likely to be
seriously short of coal, and for good reason.
For the last year or so, the northwestern rail¬
ways have been using far less fuel than normal¬
ly. Everyone has believed that they cut down
their fuel consumption because they were not do¬
ing much business. So long as the railways con¬
tinued to burn a small amount of coal, the peo¬
ple concluded that business generally was far
from brisk. Therefore everyone — including the
coal men — argued : ‘Until business braces up a
bit, no one need worry about a supply of coal.’
In a sense, railway fuel consumption was looked
upon as a barometer of business.
“The facts do not support this general assump¬
tion. It is true that the railways used relatively
a small amount of coal within the last year. But
it is not true that this measured their decrease
in business. Rather, it signified that they were
using only the very best and most modern types
of locomotives. In a word, they used nothing
but the Mallet or the Mikado engines. With
those locomotives they not only hauled a much
bigger volume of business per engine, but they
did it at a minimum expenditure of fuel.
“So long as the railways were able to get
along while using these big engines alone, they
were operating at maximum efficiency and with
a minimum amount of coal. That was one thing
Port Arthur, Out., claims the finest coal
docks on the Canadian lakes.
They were finished this year and were
built along the newest lines of construction.
They will handle, before navigation closes,
over 1,500,000 tons and the total may run as
high as 2,000,000.
They were built by the Canadian Northern
Railway and were opened with one set of
clams in 1906. The capacity at that time
was 22,000 tons of hard and 250,000 tons of
soft coal.
In 1913 this capacity was increased to 160,-
000 tons of hard coal and 500,000 tons of soft
coal. Last year a fourth clam of two tons
capacity capable of handling three thousand
tons per day of ten hours was added and is
now in operation. This enables the dock to
that cut down the fuel consumption.
“Now those same railroads, to handle their
busines.s, must pull out of the roundhouse every
locomotive that the railway owns. These are
not efficient machines. They were not built to
get fuel economy. From now on, the northwest¬
ern railways are not going to haul their busi¬
ness with anything like the same expenditure of
coal as heretofore. As a consequence, railway
fuel consumption in the northwest is going to
increase all out of proportion to the number of
engines put into use. This means that north¬
western business is improving rapidly, but the
railroads are not going to be able to handle it
all with efficient equipment. Rather, they are
going to try to handle a part of the big volume
of business with antiquated equipment.”
When the railroads are cornpelled to take these
old engines out of the repair shop or the round¬
house, it does not speak very well for the chances
of the coal consumer or retailer to get coal from
the docks in stormy or cold weather. In the first
place, the retailers will be in competition with
the railways for the available coal ; that will
automatically shorten the supply of the dealers.
In the second place, these old engines will be
likely to fail when called upon to buck a snow¬
drift. The northwest, in consequence, is in dan¬
ger of encountering a congestion of traffic due
to engine failure at the very time the demand
for coal is the greatest. The retailer, who,
under the circumstances, neglects to get in his
coal before the cold weather comes, is flirting
with the worst possible kind of danger.
load into railroad cars at the rate of 8,400
tons daily.
The hard coal is contained in sheds which
are built of steel and concrete and each have
100,000 tons capacity. It is possible to ship
independently from any one, and all may ship
together. A feature of these sheds for hard
coal is that they have concrete conduits for
the loading belts to run in, thus greatly les¬
sening the danger of fire.
The whole dock is modern in construction
and is run by electricity. It has three sets of
track-weighing scales which weigh the emp¬
ties in and the loaded cars out. It is possible
to weigh loaded cars outward and empties in¬
ward at the same time. This feature is unique
in coal docks at the head of the Canadian
lakes. This year there will be handled through
these docks over 1,250,000 tons of coal.
Canadian Northern Railway’s Coal Dock at Port Arthur.
Canadian Northern Docks at Port Arthur
No. 22]
THE BLACK DIAMOND
431
What of the Price-cutter?
Coal dealers who have the price-cutting habit
will not enjoy, but may profit from reading the
following from the pen of Herbert N. Casson,
who states the situation in words that are likely
to get under the skin of the most callous and
hardened sinner :
“The price-cutter is worse than a criminal.
“He is a fool.
“He not only pulls down the standing of his
goods: he not only pulls down his competitors;
he pulls down himself and his whole trade. He
scuttles the ship in which he himself is afloat.
“Nothing is so easy as to cut prices; and noth¬
ing is so hard as to get them back when once
they have been pulled down.
“Any child can throw a glass of water on the
floor, but the wisest scientists can’t pick that
water up.
“The man who cuts prices puts up the sign :
‘This Way to the Junk Heap!’
“He admits his own failure as a salesman. He
admits he has been defeated according to the
Marquis of Queensbury rules of business. He
admits he cannot win by fighting fair.”
Cutting Prices Hurts Demand.
A good many coal dealers who from time to
time cut the prices of their commodity below a
figure which is calculated to produce a profit
have the idea that a reduced price necessarily
stimulates demand.
That is one of the greatest fallacies of the
situation. So many other factors enter into de¬
termining where an order is to be placed that it
is impossible to reason that because a price is
cut more business necessarily will follow. In the
first place, the cut must be advertised, and that
means expense; in order to be really effective
as a business-getter, it must be much more wide¬
ly advertised than a dealer who is losing money
on his business can afford. And branding him¬
self in this way is going to make it mighty hard
to climb back on the pedestal of profitable prices.
In fact, too much cut-price advertising tends to
undermine public confidence in an article or a
firm. “Methinks the lady doth protest too much.”
The concern which keeps hammering on the re¬
duction in its prices suggests to the buyer that
the quality may not be up to the mark, and even
though this may not be a fair imputation, it has
its effect on the situation.
In a town where cut prices have been the rule
for some time, an association was recently formed
by the better class of dealers, with the slogan,
“Let’s Make Some Money Out of Our Business!”
The notorious price-cutters were left off the list,
and after standard quotations had been estab¬
lished, it was reported by the members that the
activities of the cut-price concerns did not seem
to be hurting them. The fact of the case was
that these dealers had injured their own reputa¬
tions by too much emphasis on their low prices,
and had given the public reason to believe that
there must be some reason for them other than
a desire to confer a benefit on coal consumers.
When the real trade leaders establish prices
on the right basis, and stick to them, cutting
prices doesn’t help competitors who have to cut
them in order to have a chance to get the busi¬
ness. It merely establishes their status a notch
below the people who are holding up values, and
are giving everybody his money’s worth in coal
and service.
Where Trucks Help a Lot.
A coal dealer who is operating a number of
motor trucks had an experience recently which
.showed clearly to what extent trucks can be of
service in enabling money to be made out of the
business.
A big industrial concern, which for reasons
pertaining to its business is not located on a
switch, was about to let a contract for coal,
which it wanted to buy in carloads, delivered at
its factory.
This involved a haul of more than a mile, and
the teaming. charge was not only one of the big
factors in the price, but also was the only basis
for competition. Under such circumstances, the
use of trucks was not as effective as it would
have been with a longer haul, and where load¬
ing equipment could be used, as it was with deliv¬
eries from the yard; but it was just helpful
enough to enable the dealer who had motor equip¬
ment to get the business, and without cutting
the price below a profitable figure. The trucks
made the distance in a third of the time taken
by horses and wagons, and while the loading
time was the same, the saving was sufficient to
enable a slightly lower price for the work to be
figured and the contract to be secured.
Besides, the use of wagons meant that a lot
of equipment would be tied up for days at a
time getting the coal to the consumer; while
with trucks the buyer could be kept supplied and
the cars unloaded in a reasonably short time, with¬
out making the equipment unavailable for other
work. They were used for emergency and long¬
distance business just as before, handling the
contract deliveries in between the other calls.
How Contests Work.
Business is a great game, and if the sporting
element is properly featured, it will do a great
deal to stimulate interest and increase results.
In big organizations, contests among the mem¬
bers of the sales force are splendid stimulants,
and it is often well to offer prizes to the men
who make the best records for periods of weeks
or months, or who secure the greatest nurnber
of new customers, have the fewest complaints,
etc.
In the small business, where only one outside
salesman is employed, for instance, a contest
does not seem practicable. And yet the same
element of competition which is needed to ginger
up the solicitor may be introduced by letting him
compete with himself !
This is on the basis of his former records. A
bonus can be offered if he beats last year’s, last
month’s or last week’s figures; and the boss, by
keeping tab on these comparisons, can likewise
have a better line on what his salesman is doing,
and whether his work is showing an improve¬
ment.
The solicitor whose record is constantly in the
limelight, as it is when a contest of this sort is
instituted, is going to try harder to hold up his
end than he would do otherwise. Some men are
so constituted that as soon as they turn a good
trick, they begin to loaf, feeling that they have
done everything that ought to be expected of
them. Others dislike to do too much in a given
week, for fear it will set too hot a pace for them
to follow thereafter, and they begin to slump in
their work as .soon as one big order is landed.
But the man who fails to improve is not a suc¬
cess, no matter if he manages to hold his own;
it’s the live wire who can make a continuous
improvement, and whose advance is steady and
assured, that gets the raises and the promotions.
Having a sales contest, if it is only for the
benefit of one outside man, will do a lot of good
for the business; while if there are three or
four in the sales department, a little healthy com¬
petition and a little generous rivalry will do a lot
to make the work more enjoyable and the re¬
sults more satisfactory to the man who is running
the business.
The Element of Depreciation.
Coal retailers whose businesses are conducted
as corporations have had their attention called,
doubtless, to the matter of making returns for
income tax purposes, and to the item of depre¬
ciation which is permitted to be subtracted from
gross profits in order to arrive at the amount
subject to taxation.
It is probably a good thing that this feature
is being emphasized, because the treatment of
this factor has been decidedly loose among most
business men, including retail coal dealers. Some
members of the trade have made a charge for
depreciation only when their profits were large
enough to take care of this feature; others
failed to allow for the loss of value caused by
ob.solescence, which is entirely different from phys¬
ical depreciation, but is just as important. When
a class of equipment becomes obsolete, and must
be replaced, the fact that it is physically in good
condition does not alter the loss of value, as an
operating proposition.
The Government has laid down no hard and
fast rules regarding the amount of depreciation
which is permitted, but a “reasonable” charge
must be made. That means that it must be made
annually, instead of being “saved up” for the fat
years, and left off during the lean years; like¬
wise, experience has shown, if a charge for obso¬
lete equipment is to be made, it should not be
included in depreciation, but a special charge for
that purpose indicated.
In connection with depreciation, the plan used
by a business man in another line would probably
be a good one for retailers to adopt. Since the
charge is shown on the books, the money which
is thus produced must either be kept in the gen¬
eral accounts of the firm or carried as a separate
proposition. If the capital of a concern will
permit, the plan referred to of investing the
money produced by making the charge in nego¬
tiable listed securities has the big advantage that
when additional equipment for replacement pur¬
poses is to be bought, it can be taken out of this
special fund by the sale of the necessary securi¬
ties, without having to go into the general fund
or perhaps borrow the money for that purpose.
Thirty Seconds at the Phone.
Psychologists would probably be interested in
analyzing the situation presented by the facts
that when one is waiting in a store or office,
thirty seconds is a very short time; but when-
one is hanging on the end of a telephone, waiting
for someone — say a coal dealer — to answer, thirty
seconds is magnified into an intolerably long in¬
terval.
Probably it is because the mind is concentrat¬
ed on the phone; the person calling is held in
suspense, mentally, each second expecting the
“Hello” from the other end of the wire to start
the conversation for which the call was made.
In the other case, the mind is at rest, and in¬
terest may be taken in the surroundings, so that
the time which intervenes between the entrance
into the store and securing the attention of a
salesman or other person whose presence was
desired passes quickly.
This is not merely an academic fact which is
Ijeing passed out for no other reason than that
it is interesting; but to emphasize again the
necessity of having prompt service in regard to
answering telephones. It takes some time to put
a call through the exchanges, and consequently
several seconds have elapsed when the bell in
the- office of the coal dealer rings. It is there¬
fore of great importance that it be answered im¬
mediately, even if conversation with someone in
the office must be interrupted, or an entry in
a ledger suspended without crossing a “t” or dot¬
ting an “i.”
It is best, too, that the phone should be an¬
swered by someone capable of taking an order, as
having to cause further delay by turning the cus¬
tomer over to a different person is likely to
produce irritation. Everyone in the office, there¬
fore, .should be trained along this line, so that
even the stenographer, who thinks she was em¬
ployed solely to take dictation and pound her
typewriter, will be available if others are out,
and everybody else will be in a position to do
business whenever it is offered.
Plenty of phones, with intelligent and courte¬
ous and prompt — especially prompt — answers to
calls, will do a lot to create a favorable impres¬
sion in the minds of the hundreds of cu.stomers
whose experience with the dealer is solely by
way of the telephone.
432
[November 27
_ ^ _ the black DIA3I()ND.
What Retailers in Many Cities are Doing.
Arkansas.
Little Rock — A new retail coal business of this
city is that of Thomas-Aclams Fuel Company,
which has recently been incorporated for $10,000.
Idaho.
Kellogg — Boro Brothers of this city have re¬
cently purchased the retail coal business of Ben
Roth rock.
Illinois.
Rock Island — The Port Byron Material & Fuel
Company is a new corporation of this city.
Erie — The Osborne Company will conduct the
coal business of the old Osborne & Clarke Com¬
pany.
Cairo — Mr. I. Bear will succeed the Citizens
Fuel & Feed Company in the retail coal and feed
business.
Winchester — Mr. P. E. Taylor is in charge of
the business of the Glacier Coal & Ice Company
at this city.
Geneva — The Charles Ilarbaugh Lumber Co.
will succeed the Watson Lumber Company in the
retail coal and lumber business.
Indiana.
Kirklin — Ed Mcllwain will enga.ge in the re¬
tail coal business in the near future.
Delphi — The retail coal and ice business of
H. L. Sharp has been taken over by the Haugh
Coal Company.
Andrews — A. Wasmuth & Sons Company have
succeeded the Black Diamond Coal Company on
the death of the former owner, Mr. Long.
Indianapoli.s — The Northern Ice & Fuel Com¬
pany, with capital stock of $25,000, has recently
l)een organized to deal in the ice, coal and coke
business.
Elkhart — Wm. D. Shimp has made several re¬
pairs and additions in his coal yards here, and
now has a storage capacity of over 3,000 tons.
Goshen — Business is .good and collections fair.
Present cold weather has caused an increased de¬
mand for domestic coal here. — Independent Coal
Co.
Muncie — The Elevator Cash Coal Company has
recently been incorporated with a capitalization
of $10,000. The products handled by the new
firm are coal and building material supplies.
Plymouth — Business is good, brought on by the
colder weather, and collections are normal. Are
experiencing some difficulty in getting anthracite.
— A. C. Richard.
■ Elkhart — Staples & Hardman have just built a
new office building in their coal yard. It is up-to-
date in every respect, including a new scale with
a concrete pit. The back of the office building
is used as a warehouse for storin.g lime, cement,
etc.
Elkhart — Calvert and Krau, a new retail coal
concern here, have just completed a new coal
yard with office and sheds. The sheds are con¬
structed of wood, with concrete floors. The sheds
are built in a semicircle with a roof projection
to protect rain or snow from getting in the coal
from the driveway. The office is up-to-date in
construction and design.
Iowa.
Fort Dodge — Edward W. Collins has succeeded
H. E. Fitz in the retail coal business.
W'aterloo — F. E. Watkins has taken over the
retail coal business of G. W. Bunn.
Grundy Center — E. E. Billings is now en.gaged
in the retail coal business, having bought out the
Leibsohn Grain Company.
Fort Dodge — A new corporation of this city
is that of the Dean-Bennett Company, which will
deal in coal, feed and grain. The capital is $3,000.
Traer — The Jas. A. Smith Lumber Company of
Osa.ge, Iowa, has purchased the retail coal and
lumber yard of the D. E. Baker Lumber Company
of this city.
Kansas.
Junction City — George C. Moses & Son have
purchased the retail coal and lumber business of
the Mead Lumber Company.
.Stafford — Pat McCloskey has taken over the
retail coal business of Soice & Jiminson.
Blue Rapids — The Burgner-Bowman Lumber
Company has succeeded the Gem City Lumber
Company in the retail coal and lumber business.
Kentucky.
Louisville — The Kennedy Coal Company is a
new organization of this city. The firm was in¬
corporated for $1,200.
Michigan.
St. Joseph — Fred Ormsby has purchased the old
Harmon yard at this city.
Bay City — W. F. Kaezynski Coal Company has
purchased the retail coal business of Frank Webb.
Gaylord — The Gaylord Lumber & Fuel Com¬
pany is a new corporation of this city. The prod¬
ucts of the firm are coal and lumber.
Clare — The Clare Lumber Company was re¬
cently organized, having taken over the retail
coal and lumber l)usiness of N. F. Greeck.
Ann Arbor — The .'\nn-A Fuel Company has
recently been organized and has taken over the
retail coal business of the late George W. Weeks.
Holland — The Fekkem & Dyke Coal Company
is a new retail coal business recently organized in
this city.
Royal Oak — The Lawson Lumber & Coal Com¬
pany, with capitalization of $50,000, has been or¬
ganized to take over the retail coal and lumber
business by J. M. Lawson (estate).
Missouri.
Gibbs — The Gibbs Lumber & Coal Company has
taken over the lumber and coal business of the
Merideth Lumber Company.
Joplin — The Square Deal Coal & Material Com¬
pany has recently filed articles for incorporation
with capital stock of $2,000.
Moberly — The Central Coal & Supply Company
have succeeded Tuley & Son in the retail coal,
wood and building material business.
Montana.
Billings — I. A. Hoyt has purchased the interests
of the North Coal Company.
Helena — The Pioneer Coal Company has re¬
cently en.gaged in the retail coal business.
New Hampshire.
Concord — George R. Taylor & Company has
purchased the retail coal business of the Loveren
Coal Company.
New Jersey.
Red Bank — J. N. Beers has succeeded J. S.
Hunt in the retail coal business.
Washington — A new corporation of this city
is that of Cattelle & Shulze Coal & Lumber Com¬
pany.
West Berlin — Robert Jaggarshas has enga.ged in
the coal 'business recently.
New York.
Albany — The Star Wood, Coal & Charcoal
Company, with capital of $2,500, has recently
been organized.
Utica — R. B. Howarth Coal Company has re¬
cently been incorporated to engage in the retail
coal business.
Brooklyn — Thomas F. Taylor’s Sons is a new
corporation of this city with a capitalization of
$50,000 to engage in the coal, coke, wood, and
lumber business.
Hudson — The Van Wycke-Thorpe Coal Com¬
pany, one of the largest concerns of its kind in
this section, has recently purchased the B. S.
Tohnson Coal Yard formerly owned by S. H.
Tallmadge.
North Dakota.
Fargo — The Great Northern Fuel & Construc¬
tion Company, with capitalization of $5,000, has
'recently been incorporated.
Ohio.
Marysville — H. D. Harris has purchased the
retail coal business of Mrs. L. A. Shields.
Deaver Dam, Ohio. — The coal business in this
city is in a very satisfactory condition. The vol¬
ume of business is increasing each year, and there
has been no changes in the personnel of the trade
for the last few years. There are two yards
here, ours and that of the Beaver Dam Elevator
Co.— C. C. Heller.
Batavia, Ohio. — We have just built a new lum¬
ber shed, forty by 120 feet in dimensions, in our
lumber and coal yard here. Business is very satis¬
factory. — Geo. A. Keen & Bro.
Pennsylvania.
Wawaset — W. J. Pratt & Sons have purchased
the retail coal business of E. P. Wilkinson.
Reading — Jacob Mentzer will engage in the re¬
tail coal business in the near future.
Lansdale — The A. C. Godshall Company has
succeeded James Brady in the retail coal business.
Washington Borough — BenjamineK. Sauder has
taken over the retail coal business of S. M. Young.
Tennessee.
Columbia — The Columbia Ice & Cold Storage
Company has engaged in the retail coal business
recently.
Knoxville — J. A. Shanks has purchased the
stock and interest of H. M. Miller in the Miller
Transfer & Coal Company.
Chattanooga — The flryan Transfer & Stora.ge
Company has added a coal department to its
large transfer and storage business.
Texas.
Tioga — A. H. Lefthwich has purchased the re¬
tail coal business of J. H. Henderson, deceased.
Mineral Wells — T. J. Green Ice & Kuel Com¬
pany has taken over the equipment of L. N.
Brewster, who has retired from business.
Wisconsin.
Kenosha — The Independent Coal Company has
been incorporated for $20,000.
Menomonie — The City Fuel Company has pur¬
chased the business of the F. C. Michaels Fuel
Company.
Milton Junction — Fifield & Halverson have pur¬
chased the retail coal and lumber business of the
F. B. Goodrich Lumber Company.
Milwaukee — The Whitnall Coal & Supply Com¬
pany, with capital stock of $50,000, has recently
l)een incorporated to enga.ge in the retail coal and
building material business.
Character in Advertising.
The introduction of characters into advertising,
such as the Gold Dust Twins, the clowns in ZuZu
Ginger Snaps, the Dutch Girl in Dutch Cleanser
and the Little Bears in Winchester Rifle adver¬
tising, must be a successful practice from the
length of time it has been going on.
The M. B. Schofield Company, a retail coal
company of Oklahpma City, Okla., has introduced
a character into its advertising under the name of
“Phil Binns,” who in reality is M. B. Schofield
himself.
“Phil Binns’ ” philosophy usually appears in
newspaper advertisements, he himself heading the
column as shown by the extract from one of the
recent advertisements.
The advertisement begins, “Phil Binns says a
woman asked us the other day, ‘Why do you
advertise coal as healthful heat.’ Not wanting to
be arrogant we let her answer her own question
PO;i3A/rvr\>o/
says
A Wornan^^^
Adv. of M. B. Schofield Co.
by asking her these : Did you ever hear of coal
‘escaping’ — or of killing plants in the room where
it is used — or of the children ‘turning it on’ while
the parents were away — or, did you ever hear of
coal having such an accident as ‘broken mains,’
or such a disease as ‘low pressure?’ Of course
not. Even for heating a small furnace in a five-
room house coal is the cheaper fuel, and it is
safer and more healthful also. Phone Walnut 8
for healthful (coal) heat.’’
The trade slogan, “healthful (coal) heat’’ is
used because of the cheap gas competition exist¬
ing in Oklahoma City, and must be a most effec¬
tive one.
It is safe to say that “Phil Binns” philosophy
and argument must attract and hold the attention
of everyone who sees it, and no doubt is produc¬
ing very satisfactory results for the advertiser.
No. 22]
THE BLACK DIAMOND
433
Factors in Anthracite Cost.
(Concluded from page 425)
panics in the anthracite region, it has been found
that during the last ten years the complaints
received by the anthracite companies amount to
less than one-half of one per cent of all the coal
that was shipped, and in a great many instances
a number of these complaints were not justified.
I want to say that the extra cost of demurrage,
the extra cost of repreparation, and the extra
cost of sales allowances, tend to increase the
cost of coal to the retailer and the consumer. The
retail dealer may think that when he obtains an
allowance on a car of coal that it means an eco¬
nomical saving, but I wish to point out that that
allowance goes against the cost of producing coal
and simply brings nearer the time when the next
increase is to be made in the sales cost of anthra¬
cite coal at the mines.
It has always appeared to me that if the sales
organization, and by that I mean you wholesale
and retail dealers who are essentially the sales
organization of the companies, would only try to
bear in mind that complaints when justified will
be rectified, but that we want to know definitely
what the complaint is ; that when we receive, as
we do very often, complaints concerning rusty
coal, which is caused by a fine film of oxide of
iron on the outside of the coal, or dull coal, or
fiat fractured coal, that these conditions are out¬
side our power to correct. The rusty coal, the
dull coal, and the flat fractured coal must be
mined and must be consumed, and this condition
must be met and be met by you gentlemen.
It is perfectly possible for us to leave this qual¬
ity of coal in the mine and then go back in twen¬
ty-five years’ time and mine it, but the fact must
be faced that if we do this it will cost three times
as much to mine that coal in twenty-five years’
time than it does now.
Another question of constant complaint is the
burning quality of coal — “coal will not hold fire
over night” ; it is perfectly all right for you
gentlemen to pass that complaint on to us, but
you know where the complaint comes from as
well as we do. In the majority of cases it is due
to the careless firing of the coal and the question
of laziness or the inefficiency of service. We
have this same complaint at home and we have
enough to do without receiving any more from
you gentlemen in New York state.
If the retail coal merchant and the wholesale
coal merchant would simply try to work with us
and appreciate what we are trying to do toward
the conservation of this wonderful natural prod¬
uct, there can be undoubtedly a vast amount of
money saved through the allowances which are
today being made by all companies.
I would like to say in conclusion that there is
one thing that I would especially like to impress
upon you gentlemen : we are facing a new agree¬
ment in the anthracite region next spring. I do
not know what will be the outcome of the nego¬
tiations, and while I hope and feel there will be
no serious trouble of any kind, you can feel as¬
sured of one thing, and that is the price of an¬
thracite coal is going to be no less in 1916 than
it was in 191.5.
Furnace Flexibility.
(Concluded from page 426)
Mr. Buchanan is inclined to believe that the
average furnace should be insulated with asbestos.
Then he says that the “lead” pipes in the base¬
ment should be given an asbestos covering. The
“return” pipes, of course, should be left uncov¬
ered because some heat in the basement is neces¬
sary in order to warm the living room floors. With
the “lead” pipes covered and the “return” pipes
uncovered, the tendency is to deliver all the heat
to the radiators in the house and to increase the
circulation by having the return pipes cold.
The writer wanted to know what such an insu¬
lation would cost and made inquiries of the
plumber. The latter .gave an estimate of twenty-
five cents a foot for the “lead” pipes, which would
bring the cost in the average house up to twenty
or twenty-five dollars. This is not worth while
for one season, but as a long-run proposition it
is worth while if the householder is anxious to
get the best results from burning coal.
One of the most interestin.g experiments made
with house heating appliances was brought out on
the train recently by a man by the name of John
A. Shepard, who lives in St. Louis. Mr. Shepard
is a business man who invests some of his earn¬
ings in apartment houses. His investments up
to now have been in two or three apartment build¬
ings. He says that the best results he has been
able to get, so far, have been from the use of
New River mine run coal. He bears out Geor.ge
F. Stahmer in this particular. Incidentally he
fired his coal in about the same way that Mr.
Stahmer does, viz., making a mound in the cen¬
ter and thus exposing the greatest possible
amount of coal to the flames.
In some of his tiewer buildings he has been
putting in a sort of underfeed stoker. The coal
in that device is shoveled into a hopper which
is attached to the front of the furnace. From
the bottom of the hopper a channel runs in under
the .grate bar and in this channel there is a ram.
In the center of the grate bar there is a circular
opening about twelve inches across. By the use
of a lever which operates the ram the coal is
forced through this channel and put into the fuel
bed from below. As fresh coal is pushed in, the
bed of coal is forced up, making the same kind
of a mound in the center that Mr. Stahmer spoke
about a month ago. The .gases from the coal
must, therefore, pass through an incandescent bed
of coals before they can possibly escape. Thus
they have the best chance to be burned. As a
matter of fact, he says that this firing is practi¬
cally smokeless, in addition to which the plant can
be operated by a woman with the least possible
annoyance to herself — if the man shovels the coal
into the hopper at morning and at night.
By the use of this device it is not necessary to
burn an expensive coal, but rather he has found
it practical to use the finer sizes — or those below
two inches — of various Illinois coals. He is
usin.g, in some of his apartment houses, coal from
the “inner group” of mines around St. Louis.
Dr. C. W. A. Veditz, Commercial Attache of
the United States Department of Commerce
at Paris and Madrid, sailed on Saturday for
It is realized that if coal is going to be sold
according to analysis, and if as a consequence
analyses are to be made, much depends upon
how the sample of coal is taken that is going
to he anaylzed. Two or three different ways
are suggested by which this sampling should
l)e done. Most of them, however, include
some form of quartering the coal pile, and
Paris after a visit of about three weeks to this
country. Dr. Veditz has been very active
in France and Spain in creating interest in
American coals, and believes there is a great
future for American coals in these two coun¬
tries. Dr. Veditz believes that relief is in
sight to the present scarcity of ships for tak¬
ing coal, he taking the position that the pres¬
ent rates are prohibitive. On this question
he said: “I can see relief in sight, however,
from three different causes. In the first place,
the bulk of the grain traffic will soon be out
of the way. In the second place, many of
the contracts for munitions call for delivery
during or before the month of February. With
the filling of these contracts a considerable
bulk of the traffic will be cleared away. Lastly,
natural causes always cause a decline in freight
rates around March, and this will enable more
of the bulky material of low value to move.
These circumstances, combined, perhaps with
others, will make it possible to ship coal again
to Spain on a large scale. If this freight
problem can he solved, I am sure we will sell
1,000,000 tons of coal to Spain and 5,000,000
tons to France before July.”
The Republic Iron & Steel Company expects to
have its new ninety-ton open-hearth furnaces
completed on or about January 1st. The new
lap and butt weld pipe furnaces being erected by
the company will not be completed until later.
The seventy-five Koppers by-product ovens are
now in full operation, and the company is making
enough coke to supply its five blast furnaces in
the Youngstown district.
Taking a Coal Sample.
then pulverizing the residue until a satisfac¬
tory sample has been obtained,, d'hc accom¬
panying series of pictures really tell their
own story, because they are sort of a moving
picture of coal sampling process. They were
made by W. D. Stuckenburg of the Commer¬
cial Testing & Engineering Company of
Chicago.
One Acknowledged Way of
434
THE BLACK DIAMOND.
[November 27
FUBIiISHED BYBBT SAT0BDAT BT THB
BBACK BIAMONB COMPANY.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United _ States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THB BBACE DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, November 27, 1915.
INDEX.
Special Articles.
Page
Factors Which Increase Cost of Mining Anthracite. . 425
Increasing the Flexibility of a House Furnace . 426
Getting Down to Details While Talking Costs . 427
llow a Delivery System Brought Results . 427
Appeals to Women . 427
Can Car Shortage Be Avoided by Storing Soft Coal? 428
A Power Hoist on a Trailer Truck . 428
Mine Clearing House . 429
Danger of a Coal Shortage in the Northwest . 430
Canadian Northern Docks at Port Arthur . 430
Field of the Retail Dealer . 431
What Retailers in Many Cities Are Doing . 432
Character in Advertising . 432
One Acknowledged Way of Taking a Coal Sample. . 433
Editorial . 434
How Elkhart Dealers Solved the Credit Problem.... 435
Hocking Valley Rate Case . 435
News Local to Chicago . 438
Association News . 436
Facts Which Determine Our Export Prospects . 437
Anthracite Rate Suspended . 444
Market Reports.
General Review and Chicago . 438
Pittsburgh and Cleveland . 439
Cincinnati, Denver, Duluth and Indianapolis . 440
St. Louis, Louisville, Omaha and Detroit . 441
New York. . .- . 443
Philadelphia and Buffalo . 443
Baltimore, New England and Birmingham . 444
Hocking Valley . 19
Defying the Lightning,
There is an old picture which has done
service for a good many centuries when
it has been necessary to teach the innate
folly of an egotistical line of action. It
is a picture of Ajax standing with spear
and shield upraised defying the lightning
to have a tussle with him. Today, when
an individual business man puts himself
in opposition to the progress of the race ;
to the progress of his industry or of his
community, some cartoonist shows this
gentleman in the role of Ajax defying the
lightning. If the writer of these edi¬
torials were a cartoonist, he would thus
caricature many retail coal dealers — and
.some other coal men.
The immediate point in mind is the at¬
titude of the antiquarians — meaning the
moss-backs — in the retail and other de-
liartments of coal in refusing to admit that
modern methods are right or even have
a ])lace in our social or economic life.
For example, the retailer has the same
side tracks, the same sheds, the same kind
of horses and wagons that his grandfather
and even his great-grandfather used.
While employing that class of equipment,
it costs him, we will say, $1.50 a ton to
unload the coal out of the car to put it into
one of his ancient chariots and to haul it a
mile to the consumer. This is as much
as it costs the railroad using modern ap¬
pliances to haul that same coal 300 to 500
miles and to deliver it to his yard. This
cost is fifty cents a ton higher than the
value of the coal in the ground, plus the
labor cost of mining it, plus the cost of
l)reparing it, plus the interest on invest¬
ment in coal and top works, plus the cost
of making sales.
Still, the retailer says that $1.50 a ton
is not enough. He wants $1.75 or $2.00.
He doesn’t want to use this additional
money to get enough capital together to
improve his methods. With him, the pro¬
posed larger margin is not any such tem¬
porary matter. He wants the increase
so that he will have more money to spend.
Then comes along in competition with
him a line yard, we will say, or another
method of distribution which is not so ex¬
pensive. Then the ancient retailer rises
in his might and says that he and his
father and even his grandfather and great¬
grandfather were in business right there
on that spot for years and years. By
right of length of service, ' the business
belongs to him. He is going to have it
he says, against the other fellow’s com¬
petition. It makes no difference what
service the other man offers and what
price the other man decides to sell his
coal for, he will hold his trade.
As a business proposition, the one thing
which this antiquarian has as a defense of
his business is the fact that his customers
are his friends. He is thus trying to in¬
sert a personal relation into an impersonal
business. The two never have mixed and
never will mix.
As an economic proposition, his proposal
amounts to this: The old method is best
merely because it is old. Anything which
is new or modern is sacrilegious because
it treads upon ground which is holy be¬
cause of its antiquity.
As a plain matter of fact, the gentle¬
man who takes such a position is, from
the standpoint of either economics or of
business, a plain fool. He is expecting
people in business to do something which
is not businesslike. There is no way
properly to characterize the actions and
attitude of such a retail dealer except to
draw a picture of him as Ajax defying
the lightning. He is a solitary individual
who stands up valiantly against the in¬
sistent demand of the whole human race
for progress.
On Coal Taxation.
The Supreme Court of Pennsylvania
only recently handed down a decision
holding to he unconstitutional the law
laying a tax on anthracite coal.
Justice Stewart, who wrote the opin¬
ion, finds that the “necessary effect of the
legislation is to create inequality of bur¬
den.” As this is forbidden by the con¬
stitution, the law is stricken down.
The act referred to was passed by the
legislature of 1913 and provided for a
tax of two and one-half cents a ton on
the value of anthracite when prepared
for market. Of this sum one-half was
to he returned to the hard coal counties
and to be apportioned to the various
cities, boroughs and townships in the
counties.
Justice Stewart gave the opinion that
the law was unconstitutional because it
placed an unfair burden on a certain in¬
dustry and discriminated in favor of cer¬
tain counties and against others.
The decision of the court is only re¬
ferred to here because the same question,
or practically the same one, must be
answered sometime in West Virginia.
Only by concerted efforts, involving the
manipulations of all kinds of political
deals, have several legislatures in this
state been prevented from putting a simi¬
lar law on the statute books.
Fuel is the life of industry and of man¬
ufacturing power, not to mention its vital
part in domestic economy. — Charleston
(W. Va.) Gazette.
Computing the Cost.
There are and may be certain phases of
business and particularly of the coal busi¬
ness which are general in their character.
1 hat is, there are coal movements, espe¬
cially among the retailers, which can be
shared by every retail coal man. Such
things include efforts to encourage or to
discourage general legislation for example.
It is perfectly possible for all the retailers
or for all the wholesalers to unite on a
general legislative program because that
is something which concerns them all.
An increase or decrease in freight rates is
of a similar character.
However, the matter of cost accounting
is an individual proposition. No two men
have precisely the same elements entering
into their cost of doing business. There¬
fore, no two men have had, or can have
the same method of computing the cost of
doing business. For that reason the mat¬
ter of studying costs in order to know
where to cut them is a problem for the
individual retailer.
We mention this phase of the subject
because quite a number of retail coal men
seem discouraged now and then because
every dealer in the community will not
get together with them and study care¬
fully into this subject. Some men are
keen to learn, others are lukewarm, still
others are wholly indifferent. This fact
alone has discouraged some of those who
did want to study costs and to put their
business on a lower cost.
Because costs are such an individual
matter, our belief is that every man should
study his own whether any body else is
doing it or not. Then he should use his
acquired information to cut his costs
wherever he can. Indeed it does no good
to study costs unless the information
gained is thus used to cut various items.
However, the individual retailer by know¬
ing his costs, by cutting them, and by get¬
ting his expense down to rock bottom is
in a position where he can defend himself
intelligently.
If he knows what each particular item
costs him and has cut that to a minimum,
he can do business as cheaply as anyone
else. Therefore, if an ignorant fellow
comes along and forces him into a price
war, he knows how far he can go before
he begins to lose money. The other fel¬
low doesn’t know ; hence has not cut costs,
and soon bankrupts himself. Thus know¬
ing costs is one way of helping the retailer
to protect himself. It may even help him
to induce the opposition, if that is his pur¬
pose, to bankrupt himself. He can thus
limit his competition.
The point, of course, is that costs should
be studied individually whether all or
even a small per cent of other dealers in
the community are interested in that sub¬
ject or not.
F
No 22] THE BLACK DIAMOND.
How Elkhart Dealers Solved the Credit Problem.
Mlkhart, Ind., is primarily a railroad town, an
enormous transfer switch yard and repair shops
of the Lake Shore Railroad are located there, and
in addition it is an important terminal and trans¬
fer point of the Big Four Railroad. Its popula¬
tion of a little more than 20,000 people are almost
entirely dependent upon the railroad, and nearly
all the local businesses and merchants are in turn
dependent upon the trade of the railroad em¬
ployees.
Until two years ago, railroad employees were
paid but once a month and not twice a month as
is now required by the law. This monthly pay
day was the primary cause of the disreputable
credit system existing in Elkhart today, but now
this condition of affairs is fast being remedied
by the merchants there.
While the monthly pay day was in force, Elk¬
hart merchants had to adjust their business to
accommodate the monthly pay system. In other
words, goods were sold not for cash, but, in most
cases, for payment “next pay day,” with the re¬
sult that credit was granted everywhere regard¬
less of the financial standing of the buyer.
This former buying on credit had become such
a habit among the people, that when the twice
a month pay day went into effect the people con¬
tinued to buy on a credit basis, notwithstanding
the fact the semi-monthly salary gave them
money for their immediate needs.
Of all the husinesses in Elkhart done on a
credit basis, the coal business was probably hit
the hardest. People would buy coal on a promise
to pay next pay day, but paying for coal after it
is burned is a good deal like paying for a dead
horse, with the result that Elkhart dealers had
and still have a surprisingly large number of
uncollectible accounts upon their books. These
dead accounts may still remain on the books, but
there are very few new ones being added to the
list, and here is how Elkhart dealers have solved
the credit problem.
D. H. Herbster, manager of the Isbell Lumber
& Coal Company of Elkhart, believes in system,
not so much system that it burdens the business,
but enough to assure a profitable and systematic
execution of business.
It is he who conceived and promoted the credit
system employed by Elkhart dealers today.
Here is the system : Tom Jones is a customer
of Godfrey & Son, a coal company in Elkhart.
His account reaches a point where Godfrey &
Son will not trust him for any more coal. Eight
ordinary three by five inch index cards (red) are
made out. Tom Jones’s name, address and the
amount of the account against him is put upon
these red cards and the eight cards are mailed
to the eight other coal dealers in Elkhart. These
cards as received are alphabetically filed in a con¬
venient cabinet for future reference.
Now Tom Jones needs some more coal, and
.goes to Godfrey & Son to get it. Godfrey & Son
refuse to sell Tom any more coal on credit, with
the result that Tom gets sore and informs the
concern that he will get it, elsewhere. So he goes
over to the Isbell Lumber & Coal Company, and
states his desire to purchase some coal. Tom be¬
ing a new customer, he is asked his name, which
is then referred to the credit file, where Tom’s
name appears on a red card.
Mr. Jones is then informed that the Isbell
Lumber & Coal Company will not sell him coal
on credit, but if he will pay ca.sh, that they will
be pleased to accept his order. Tom is again sore,
and makes the often heard remark : “All right.
I’ll get it somewhere else.”
Tom Jones wanders leisurely over to the Con¬
sumers Coal Company, and again evidences a
desire to purchase some coal. With a request for
his name, and the bookkeeper’s going over to a
file and looking through a bunch of cards, Mr.
Jones at once becomes suspicious. Again he is
informed that this concern cannot accept his
order on a charge basis, but would be glad to
handle it should he desire to pay cash.
This is not at all to Tom’s liking, and he makes
similar trips with like results to the other dealers
in town. What is the result? Just this. Some
dealer in Elkhart gets a cash customer. Tom
Jones cannot open any more new accounts with¬
out giving Godfrey & Son a chance to clear up
the one they have against him. Nine times out
of ten Tom Jones goes back to Godfrey & Son
and either i)ays cash for the coal he gets, or
cleans up his account so he can buy more on
credit. He knows that he has got to stand good
for what he buys if he expects to enjoy the privi¬
leges of buying coal on a credit basis.
Now these cards are not a “Dead Beat” list.
and are not against the law preventing firms from
compiling or keeping such a list. These cards
merely denote the fact that a certain person has
an account past due with a certain company, and
that this company will not trust that person for
any more credit. Certainly any wise dealer would
not sell that person any coal on credit in the face
of such knowledge.
Now when Tom Jones settles his account, all
of the eight dealers are notified to this effect, and
though the notation is made upon the card, it is
not removed. It is left there for future reference
and as a warning should Tom Jones ever deal
with any of the other concerns.
One of the objections raised by some of the
Elkhart dealers when discussing the installation
of this Credit System was that it gave the. other
man a line on a dealer’s customers. Surely any
dealer can see that even if it does give a line on
some of the dealer’s customers, that they are not
of the character that any dealer would have any
hope of building up his business upon.
Of course there are cases, just as Mr. Herbster
told the writer, where a man has a long-standing
account and where the dealer does not make
out any card for him, because of circumstances
around this customer, as for instance sickness,
death, etc. This system is only for the hard ones,
not the unfortunates — the customers a dealer
would not trust with any more coal.
Though this credit system was but inaugurated
in June of this year, the work it is accomplishing
and the worth of the system is already demon¬
strated by the increased number of cash sales and
settlements of old accounts.
Hocking Valley Rate Case.
Columbus, Ohio, November 25. — (Special Cor¬
respondence.) — Interest in the announcement of
advance in West Virginia rates on coal shipped
into Ohio, following the meeting of railroad men
in New York last week, is secondary here to that
felt in the coal rate hearing before the State
Utilities Commission, which was resumed on the
22nd inst.
The temper of the complainant operators is to
make a fight to a finish for a twenty-five cents
per ton larger differential in favor of Ohio on
intra-state movement. The new tariffs authorized
at the New York meeting would give only a forty-
cent differential. Further, they are subject to at¬
tack by the West Virginia operators, and to pos¬
sible compromise at the hands of the Interstate
Commerce Commission. Ohio shippers believe
they will get a more equitable adjustment and
more prompt relief from the state tribunal.
Again, they want the differential to come through
the lowering of Ohio intrastate rates and not
through the advance of interstate rates.
The first witness to take the stand Monday
morning, after the three weeks’ recess, was W.
M. Hopkins, of Chicago, rate expert retained by
the Sunday Creek Company. This was on re¬
direct examination in the matter of the exhibits
he had prepared to show the alleged injustice of
the present eight-five cent rate on the Hocking
Valley railway from the Nelsonville assembling
yards to Toledo. His testimony on these docu¬
ments closed the Sunday Creek case against this
defendant. The witness was continued on the
stand, however, to explain exhibits he had sub¬
mitted in the attack upon the rates from Corning
to Toledo over the lines of the Toledo & Ohio
Central, co-defendant in the case now in progress.
The greater part of the day was consumed
with Mr. Hopkins in direct and cross-examina¬
tion. When he got through it was felt that he
had not materially strengthened the cause of the
plaintiffs. His efforts had been mostly along
the line of comparing the Nelsonville-Toledo haul
and revenue derived therefrom with hauls of
similar length in other fields, largely from Illinois
points into Chicago. The defense succeeded in
throwing his deductions into considerable con¬
fusion. A more forceful witness was found in
W. M. Daniels, of Columbus, a former freight
traffic man, but now engaged in rate expert work.
His exhibits were confined to showing what the
Corning-Toledo rate would be if based on the
same ton-mile charge as rates from various West
Virginia, Kentucky and Tennessee fields into
Toledo. He had also submitted exhibits in the
testimony against the Hocking Valley railroad.
The contention of both Mr. Hopkins and Mr.
Daniels was that the Corning-Toledo rate, includ¬
ing assembling and terminal expense, should be
435
about sixty-seven cents, instead of the $1 rate
now in force.
Monday’s session brought out a number of new
railroad faces. F. S. Lewis, of Toledo, made his
first appearance, taking charge of the T. & O. C.
defense. At the table with him was T. J. Cook,
of Toledo, general freight agent of the same
road. Herman Griggs, of Cleveland, representing
the New York Central lines, and R. F. Kelley,
general freight agent, and Auditor Holmes, both
of the Wheeling & Lake Erie, were among other
railroad people present.
Tuesday was taken up with the cross-examina¬
tion of C. W. Hillman, rate expert, on technical
explanation of his exhibits on T. & O. C. earn¬
ings, which had been introduced previous to the
October adjournment, out of its order, to ac¬
commodate Mr. Hillman, who had to attend a
rate hearing in Florida, in which he had been re¬
tained.
Wednesday afternoon saw the beginning of the
defense by the railroads, on the strength of which
hangs millions of dollars in future earnings, and
the fate of existing coal tariffs on perhaps every
line in Ohio. As his first witness, following Mr.
Hillman’s long cross-examination on the T. & O.
C. exhibits. Chief Counsel Wilson of the Hocking
Valley, called to the stand C. H. Session, train¬
master in the employ of that road at Nelsonville.
His testimony occupied the whole of the after¬
noon.
Its purpose on direct examination was to show
that the yard operations at Nelsonville, the as¬
sembling point for Hocking coal, involved forms
of service which had either not been considered
in the rate deductions of the plaintiffs or placed
unreasonably low as items making up the general
cost of operations on the Nelsonville-Toledo haul.
It was brought out that about half the trains
loaded with foreign coal received service in
some form in passing through Nelsonville. Local
coal was weighed at the rate of 30 cars an hour
and dispatched northward in average trains of 60
cars length. An average of an hour and forty-
five minutes was required to assemble a train and
get it out of the yard. Five-sixths of the tonnage
handled through Nelsonville is coal, although ex¬
tensive brick plants are also served from this
point.
At a number of points in his evidence the
prosecution confronted Mr. Session with his testi¬
mony in the New York Coal Company case of
1910 against the Hocking Valley railroad, which
action resulted in lowering the Toledo rate from
$1 to 85 cents, and which through the railroad’s
appeal to the courts brought a decision which es¬
tablished the right of the commission to make
rates. Mr. Arnold and Mr. Boyle, for the Sunday
Creek Company, sought to show by the witness
that since the beginning of the present action the
method of keeping yard records had been
changed to help the cause of the defense. Ad¬
journment was taken until Friday morning.
It is anticipated that the main defense of the
Hocking Valley and its co-defendant, the Toledo
& Ohio Central, the two roads involved in the
Sunday Creek* Company petition, will be that of
attacking the accuracy of Mr. Hillman’s exhibits,
which are the chief factor in the prosecution. In¬
stead of offering any general documents setting
forth service costs, it is believed that it will
present an amended Hillman exhibit .showing cor¬
rection of alleged errors and inconsistencies. A
number of rate decisions and opinions pertaining
to litigation in other parts of the country at vari¬
ous times will also likely play an important part
in the defense.
To date the case has been one to attract inter¬
est by reason of the aggressive intelligence on
both sides. A vast amount of preparation has
been required to get it before the commission in
its present form. Regardless of any opinions as
to the merits of the issue at stake, it is believed
that the evidence offered will be valuable in many
ways for future reference. The services of Mr.
Hillman in his exhaustive treatment of the situa¬
tion. both by document and explanations made
during the numerous days he was on the witness
stand, stand out conspicuously as an achievement,
even should it not prove conclusive with the com¬
mission.
Just previous to adjournment Wednesday, H. J.
Booth of Columhus, attorney for certain other
railroads which were named as defendants in
petitions outside of the Sunday Creek Company
intervention, asked if the commission would
render decision in the Hocking Valley and Toledo
& Ohio Central cases before hearing others. The
commission replied that when evidence was all in
with respect to these two defendants it would be
time enough to consider the point raised. Thus
the course which the present rate agitation will
take in advance of a ruling remains in doubt.
436
THE BLACK DIAMOND
[November 27
News Local to Chicago.
The offices of the St. Paul Coal Company
have been moved from Ottawa, Illinois, to
1308 Fullerton avenue.
The Madison Coal Corporation will move its
main offices on December 1st from St. Louis
to the Karpen building.
The second informal dinner of the Kan-
tishina Club will be held at the Auditorium
Hotel, Tuesday evening, December Tth.
J. R. Beardslee of the Consolidation Coal
Company, announces that this last week the
circular price on Miller’s Creek coal was ad¬
vanced from $2.2.'i to $2.40 for the four-inch
block coal. Other prices were advanced ac¬
cordingly, the one and one-half-inch lump go¬
ing to $2.25, the egg to $2.00 and the nut to
$1.70. He points out as a curious fact that the
increase in price increased the number of or¬
ders, rather than decreasing them as might
normally be expected. As a matter of fact,
he says that the company today is behind on
its orders which has not been the case here¬
tofore.
Fire destroyed a part of C. W. & F. Coal
Company’s Thayer surface plant at 3 a. m.,
Monday, November 22, but fortunately an ef¬
fective company fire brigade, together with the
fire companies from Thayer and Virden, saved
the power house, shops and miscellaneous
buildings and prevented the fire from in any
way damaging the mine. No one was injured.
The damage is being promptly repaired, and
the mine should again be in full operation in
a short time. I r. the meantime, the other mines
of the company have been speeded up to fill
n the temporary loss of tonnage from the
Thayer plant.
The announcement was made this week that
J. M. Hedge had died suddenly at his home
No. 3509 Wilson avenue. Mr. Hedge had
been connected with the Philadelphia & Read-
infi Coal & Iron Company for the last eight
or nine years. Prior to that time, he had
been connected with E. L. Hedstrom & Co.,
for ten years. He had been traveling the Mis¬
souri river territory. On Sunday, Mr. Hedge
telegraphed his wife to meet him at the train
as he was not well and was coming home.
He was attacked shortly after arriving in
Chicago by heart failure and died Monday
night. The funeral services were held at the
residence on Wednesday at three o’clock, and
the remains were taken, for burial, to his
old home at Cape Cod, Mass. Mr. Hedge is
survived by a widow and two married daugh¬
ters. He was fifty eight years of age.
At the meeting of the Chicago Coal Mer¬
chants’ Association on Tuesday, there was a
lively discussion as to whether the informa¬
tion on those coal buyers who are doubtful
credit risks should be sent out on typewritten
lists as heretofore, or whether that rnatter
should be kept in the office and made available
to anyone who cared to call for it over the
telephone. The disposition seemed to be to
keep the information on file in the office, sub¬
ject to telephone call, because when it is sent
out in typewritten lists, the dealer is prone
to disregard them as they contain too much
information in which he is not interested. The
matter was finally left in the hands of N. H.
Kendall the commissioner of the association
to get together all of the information he could
as to what other associations do and as to
what are the preferences of the different mem¬
bers. This will be made subject for discussion
at a special meeting after which there will
proliably be a referendum vote on tbe question.
It was rumored for some time in coal cir¬
cles that Henry Johnson of the Johnson
Brothers Coal Company, had quietly slipped
away about the first of bast month and joined
the Benedicts’ Clul). Henry has many friends
among the coal selling fraternity and a com-
miltee was appointed to find out if Henry was
or was not a bachelor. This co .mittee con¬
sisting of Colonel L. M. Breeden, W. H. Har¬
ris, R. L. Duncombe, John Nelson, W. C.
Waddell, Bob Kernohan, Albert Tbomas, C.
N. Eastman, H. AT Hall, Chas. Jessup, John
Kiley, William Lytton and C. N. Morrison
made a call on the evening of November 18,
at the Johnson home at 435 E. 48th street, and
found there really was a Mrs. Henry John¬
son. The committee thoughtfully brought
along a handsome electric lamp, which was
presented by L, M. Breeden. Colonel Breeden
was in excellent form and delivered an ora¬
tion that would have been a credit to Colonel
Bryan. An enjoyable evening was spent by
the entire party. Before leaving Mrs. Johnson
remarked that she was glad she had mar¬
ried into the coal trade.
A short time ago Homer D. Jones of the
Western Fuel Company, and chairman of the
Cost and Systems Committee of the Chicago
Coal Merchants’ Association started a move¬
ment for the careful study of what it costs to
do business. This was in connection with
some other members of the association who
seemed to be interested in that subject. He
got together a few members of tbe associa¬
tion at a meeting two weeks ago Friday, and
learned what each one was most interested in.
They divided the general subject up into six
departments and chose as chairman of the
subcommittees a man who was particularly
interested in that phase of the general ques¬
tion. These subcommittees are now at work
getting together all the information possible
on their general division of the subject and
on next Friday there will be a meeting of the
association chairmen of these various subcom¬
mittees. On tbe following Friday, there will
be a general meeting of all interested. There
will be short talks on cost and systems by
George E. Hutchinson and one or two other
expert accountants. It is rather hoped be¬
fore long to get together a general cost sys¬
tem, which can be put up by the association
to all of its members and recommended for
their use.
A numher of railroads centering in Chi¬
cago, have filed both with the Interstate Com¬
merce and with the State Boards, new tariffs
which carry a horizontal increase on the
freight rate on coal from the mines in Indiana
and Illinois to Chicago. This matter was
taken up for discussion at the meeting of
the Chicago Coal Merchants’ Association on
Tuesday afternoon, and was referred to the
railroad bureau of that association with in¬
structions to file a protest against these rates.
Just whether the association will file a formal
complaint later asking a definite suspension of
the tariff is a matter which has not been de¬
cided. In the meantime the protest will be
against the taking effect of the rates, at least
until the conclusion of the contract year on
the first of next April. It is expected in the
meanwhile that formal complaints against
these freight rates will be filed by the Illinois
Manufacturers’ Association, by The Chicago
Association of Commerce and by the Coal
Operators’ Associations in Indiana and Illinois.
This increase in rates is really an aftermath
of the western rate advance case, tried out
before the Interstate Commerce Commission
some months ago and decided, it will be re¬
membered, against the shippers in favor of
the railroads. At that time the railways got
a horizontal advance of ten cents a ton on
all interstate traffic with the exception of to
the Chicago gateway. No increase in the
rates to Chicago was asked at that time,
neither was there any advance asked then on
intrastate rates. The railroads have now
pieced out their program by asking an in¬
crease of five cents a ton to Chicago proper.
The retailers are not disposed to contest this
increase in rates, provided it becomes effective
on tbe first of April instead of on the 15th
of December as proposed. They say that
they have made contracts for coal containing
a delivered price, these contracts not expir¬
ing until the first of next April. If there is an
increase in freight rates they would lose five
cents a ton. This is particularly true of con¬
tracts to supply the city, county, state and
federal government with coal. As a long-run
proposition objections are expected to come
mainly from Chicago interests, and from some
of the shippers who maintain sales organiza¬
tions in Chicago. That is. if the jobbers consign
coal to themselves at Chicago and fail to find
a market for it here, and then decided to
reconsign it to some point in interstate
traffic, they would have to stand an increase
of fifteen cents a ton in rates as against ten
cents a ton applying on the movement direct
from the mines. They figure, therefore, that
the jobber in Chicago would be at a disad¬
vantage as compared with the mines, of five
cents a ton. This, however, is a point which
has long been very clearly brought out so
far by the discussion, but it seems to be one
of the objections.
Association News.
Knoxville Coal Dealer’s Association.
The Knoxville Retail Coal Dealers’ Association
held its regular monthly meeting Friday, No¬
vember 12th. Selling coal for cash was discussed
by the members, as several of the local dealers
are particularly anxious to put their business on
a cash basis. The majority of the members are
in favor of putting their business on a cash plan,
providing all of the dealers are willing to conduct
their business in a like manner. The matter was
referred to a committee for investigation and to
report at the next monthly meeting. — T. O. Bus-
bee, secretary.
Northwestern Traffic and Service Bureau.
Articles of incorporation and the by-laws of
the new organization, the Northwestern Traffic
and Service Bureau, are now printed in book
form and ready for distribution among members
of this association and to anyone interested in the
workings of this organization. Under the new
method of this association, retail coal dealers do
not become a member of the bureau, which is in¬
corporated, but simply subscribe for the service.
A luncheon held in Minneapolis, November
4th, was attended by over 909 retail coal dealers,
and a splendid meeting was had, all of those at¬
tending pledged their support to the new organi¬
zation. — H. L. Laird, secretary and treasurer.
Cincinnati Coal Exchange.
The Cincinnati Coal Exchange at a meeting at
dinner Monday launched the 1915 campaign for
new members of the board of directors. The an¬
nual election of the Exchange will be held De¬
cember 10 and at this election eight candidates
for member of the board of directors will be
submitted, four of whom receiving the larger
number of votes to be declared elected. The
board of directors consists of seven members and
these members constitute the executive power,
selecting president, secretary and treasurer. The
committee on nomination, consisting of C. R.
AToriarty of the Cabin Creek Coal Company;
T. IT. Richardson of tbe Consolidation Coal Com¬
pany, and C. J. Alagee of the Carbon Fuel Com-
panv made its report.
The committee reported the following names :
James P. Rilev of the Queen City Coal Com¬
pany; Frank B. Stewart of the Winifrede Coal
Company ; R. P. Gillham of the Campbell’s Creek
Coal Company; C. A. Tribbey of the Pocahontas-
Jellico Coal Company; A. A. Liggett of the Ral¬
eigh Coal & Coke Company; E. L. Sternberger of
tbe E. L. Sternberger Coal Company: E. F.
Bardin of the Wyatt Coal Company, and C. De¬
laney Alartin of the Halmar Coal Alining Com¬
pany. Not all were present but those who came
were “put to their paces” a la gridiron style, and
had to tell all their meanness and all their bad
points and to give these as their reasons why they
should not be placed on tbe ticket. None of the
excuses were good enough to get the candidate
off the ticket. There was one sad note, however,
and that was that one of the vacancies to be
filled was that of Captain Charles J. Menges,
drowned at New Orleans while doing his duty
by tbe Pittsburgh Coal Company in trying to
save the coal fleet of the company during the
great tropical storm which swept that city last
summer.
A committee was named to formulate a letter
to patrons of the members urging them to have
cars promptly unloaded at destination ; to refrain
from specifying equipment when ordering coaj ;
and in every way possible to aid the railroads in
overcoming the present car shortage as much as
possible. Guy AT. Freer, traffic manager of the
Cincinnati Chamber of Commerce, was a guest
of honor and made a short address. About thirty-
five members were present at the dinner.
Alembers of the Detroit Coal Exchange at their
last meeting completed the organization of eight
bowling teams, four each representing whole¬
salers and retailers. The teams will continue a
tournament contest through the winter. The open¬
ing games were bowled Wednesday evening.
A company that is building a large power plant
at Apraw Falls, two miles south of Bicknell, Ind.,
has made arrangements for the extension of
switches to its property by the Vandalia and the
B. & O. The company has 3,000 acres of land
from which it will mine coal. Plans for erecting
200 houses have been drawn.
No. 22]
THE BLACK DIAMOND
437
Facts Which Determine Our Export Prospects.
The Export Situation.
The export situation has not changed during
the week. Vessel tonnage is very scarce, and
while Baltimore showed a slight improvement
last week over the week previous by loading one
more cargo, or a total of 18,000 tons, Hampton
Roads shipments fell off.
The bunker trade at the latter ports has also
shrunk because fewer vessels are reporting for
export coal cargoes.
At the other ports, namely, Baltimore, Philadel¬
phia and New York, the bunker business is very
fair, being most active in New York, where a
great many steamers are calling for grain and
war munition cargoes.
There are a number of queries in the market
for large tonnages of coal for France and Italy,
hut shippers have found it impossible to negotiate
these to a successful conclusion because of their
inability to secure vessel tonnage.
With one or two vessels offering at 80s to 85s
to take coal to the west coast of Italy, and 75s to
80s to take coal to Spain, little business can be
done at these figures.
The rate to South America is 45s to 55s.
Rates to the West Indies are in most instances
two to three times normal rates. These attractive
rates are drawing from the coastwise trade quite
a large tonnage of schooners.
English Shipping Restrictions.
Mr. Runciman’s announcement in the House of
Commons as to dealing with cargo vessels is of
the highest importance, and not alone in its bear¬
ing upon the coal trade. Orders in Council pro¬
hibit British ships from trading between one for¬
eign port and another, except by license ; and this
should stop British ship owners carrying Amer¬
ican coal from the United States to Brazil or the
Plate, or into the Mediterranean, as they have
been doing. The Admiralty has power, he states,
to requisition ships abroad; and if this be done
for carriage of food stuffs, etc., the vessels will
reach home ports and thus be available for out¬
ward cargo — of which coal is the chief.
It should be noted, however, that the com¬
plaints against ship owners, as to their having
greater concern for rates of freight than for pub¬
lic service, finds its expression occasionally in un¬
reasonable form. There are complaints because
the owners of vessels carrying coal cargoes from
South Wales to the French coast hurry back in
ballast in order that they may as soon as possible
earn another high freight by taking out coal.
What the complainers desire is that they should
go to another port and return with ore or loading
of pit wood for home use, evidently ignoring the
fact that the loading of pitwood abroad is dilatory
on account of lack of labor, and that to go to
Bilboa, or perhaps even further afield for iron
ore would mean a very serious delay. The one
great need of South Wales is greater rapidity of
export, and this serves national ends, because it
makes foreign credit, and thus lessens British de¬
mand for exchange facilities. — Colliery Guardian,
London.
English Coal Exports.
During October 3,771,069 tons of coal, coke,
and manufactured fuel were exported from the
United Kingdom, the value of same being 3,415,-
412 pounds. The quantity exported in October
last year was 4,151,381 tons, valued at 2,754,829
pounds, whilst the figures for October, 1913, were,
respectively, 7,059,928 tons and valued at 4,953,102
pounds. Exports of coal, coke and manufactured
fuel aggregated 38,830,606 tons during the first
ten months of the present year, the value amount¬
ing to 32,569,271 pounds. This compares with
54,523,993 tons, valued at 37,321,222 pounds, and
63,958,136 tons, valued at 44,708,99.) pounds, in
the corresponding periods of 1914 and 1915 re¬
spectively. The average value of coal, coke and
manufactured fuel exported from the United
Kingdom during October was 18s 1.3d f$4.55) per
ton, as compared with 13,s 3. 2d ($3,30) in October,
1914, and 14s 0.3d ($3.50) in October, 1913. The
value during the first ten completed months of
the present year is 16s 9.3d ($4.20) per ton, as
compared with 13.s 8. 2d ($3.40) and 13s 11. 7d
($3.50) respectively in the corresponding pe¬
riods of 1914 and 1913.
The Welsh Coal Situation.
The Welsh coal situation shows but little
change, the supply being plentiful, due to a lack
of ships. Some relief is anticipated from the re¬
cent order of the British government which pro¬
hibits British shipping trading between foreign
ports unless they have a license, and also gives
the government authority to requisition vessels
for bringing to England necessities. For the sec¬
ond grades of Admiralty, 19s to 19s 6d is the
range, with other sorts selling at 18s to 18s 6d.
There has been an improvement in bunker smalls.
Vessel rates have advanced and new records
have been established. Algiers has been fixed at
48 fcs. ; Lisbon at 25s 3d ; Port Said, 50s ; Havre,
16s 9d ; Rouen, 19s; Barcelona, 38s; Genoa, 49s;
Las Palmas, 27s 6d; Buenos Aires, 39s.
Recent Coal Freight Charters.
Str. Tarbina (Dutch), Baltimore to River Plata, coal,
p. t.
Schr. Rebecca Palmer, Norfolk to Buenos Aires,
coal, $8,
Schr. Emily Anderson (Br.), Philadelphia to Halifax,
N. S., coal, p. t.
Str. Frances Luckenbach, Philadelphia to Havana, coal,
p. t.
Str. Ocland (Nor.), Philadelphia to Martinique, coal,
p. t., prompt.
Str. Caterina Accamo (Ital.), Virginia to Port Mili-
tor, coal, 47s 6d, December.
Schr. Marguerite, Philadelphia to Jucore, coal, private
terms.
Str. Bygland (Nor.), Baltimore to Preston and Banes,
coal, p. t.
Foreign Freight Rates.
W. W. Battle & Co., Produce Exchange, New
York, report as follows, under date of November
22:
The freight situation grows more acute daily,
and although we occasionally charter a steamer
for export coal, it is more than difficult to secure
tonnage even at the high rates now current.
We would quote freight rates on coal by
steamer as follows :
West coast of Italy . 80@85s
Marseilles, about . 80s
Barcelona or other good Spanish port . 75@80s
(Spanish dues for account of cargo.)
Note — Charters for Italy, France and Spain
read: “Lay days to commence on steamer’s
arrival at or off port of discharge, Is per net
register ton per day demurrage.”
Montevideo (500 discharge), about . 50s
Buenos Aires or La Plata (500 discharge),
about . 50s
Rosario, about . 55s
Rio de Janeiro (500 discharge) . 45@47s 6d
Santos . 47s 6d@50s
(Consignees paying docas dues.)
Valparaiso or Callao . $11.00@12.00
Havana . 2.75@ 3.25,
Cardenas or Sagua . 3.00@ 3.50
Cienfuegos . 3.25@ 3.75
Port of Spain, Trinidad . 4.00@ 4.50
St. Lucia . 4.00@ 4.50
St. Thomas . 3.50@ 4.00
Barbados . 4.00@ 4.50
Kingston . 3.50@ 4.00
Curacao, about . 4.00 and p. c.
Santiago . 3.50@ 4.00
(luantanamo . 3.50@ 4.00
Demerara . 6.00@ 7.00
Bermuda . 3.50@ 4.50
Vera Cruz . S.OOC® 6.00
Tampico . 5.00@ 6.00
Philadelphia October Exports.
Exportations of coal from tlie port of Phila¬
delphia during the month of (October, 1915,
were as follows;
Country —
Itily .
Anthracite.
Bituminous.
2,400
10,950
6,653
48
2,243
1,650
540
42,386
10,711
8,821
1,373
Canada .
Guatemala .
. 1,198
B.'itish West Indies .
C uba .
French West Indies .
Brazil .
. 4,772
18,908
87,775
Export Trade Briefs.
In England the following official notice, which
is being posted at coal mines, has been issued, and
is signed by the House Secretary and Lord Derby,
the Director-General of Recruiting: “Coal miners
have already joined the army in such large num¬
bers that the supply of coal, which is of vital
national interest, is seriously affected. Miners,
one and all, must remember that, upon their ef¬
forts the success of the country depends no less
than upon the men who are serving with the
forces. Those who offer themselves as recruits
will only be accepted on the condition that they
go back to work in the mine until they are called
upon. They will be given armlets to show that
they are willing to obey the call, and do whatever
will most help their country. But, in the mean¬
time, it is vital that they should not desist from
producing the coal without which victory is im¬
possible. This notice applies to all men who are
working below ground, and the following classes
of surface workers — winding enginemen, pump¬
men, weighmen, electricians, fitters, and mechan¬
ics.” Mr. Brace, Under Secretary for the Home
Department, says that any attempt to evade mili¬
tary obligations by young men seeking work at
mines will be stopped. Coal miners as a class
have already responded to the call for recruits in
such large numbers that no fewer than 250,000
had joined the New Armies by midsummer, and
this number has since been increased.
The British Board of Trade announces that,
owing to the increasing demands on merchant
shipping in connection with the war, it has be¬
come necessary to take special steps to secure
that an adequate supply of tonnage shall be avail¬
able in case of necessity to meet pressing national
needs. With this object in view, two Orders to
Council were made. The first prohibits British
ships from carrying cargo from one foreign port
to another foreign port after December 1, unless
licensed to do so. The second gives power to
requisition ships for the carriage of food stuffs
and other necessaries. The first order lays down
the principle that in this time of emergency Brit¬
ish needs must have the first claim on British
ships. It is not expected that it will be necessary
to interfere with established services between for¬
eign ports, and every effort will be made to avoid
disturbing pre-existing business arrangements ;
but licenses must be obtained in every case in
which it is desired to carry cargo in a British
ship from one foreign port to another foreign
port on or after December 1, and owners and
charterers concerned should apply to the Secre¬
tary, Ship Licensing Committee, Board of Trade,
London, S. W. The second order gives power to
the Board of Trade to requisition merchant ships
in case of emergency for the carriage of food
stuffs and other necessary supplies to this country.
This power will be exercised by a Requisitioning
Committee. The Committee will be composed of
gentlemen having close expert knowledge of ship¬
ping matters, and in order that the requisitions
may not overlap, these gentlemen will, so far as
possible, be the same as those who now advise
the Transport Department of the Admiralty. The
Committee’s object will be to secure that tonnage
shall be available in case of need for the carriage
of food stuffs, etc., and to prevent freights on
such commodities rising to prohibitive levels.
Virginia Coal Shipments.
The coal shipments over the Virginian rail¬
way fell far below those during the month
of August, 393,055 tons being shipped in Sep¬
tember as against 411,090 in August. Follow¬
ing are the individual colliery loadings:
K. G. J. & E. R. R. via Pax .
E. E. White Company —
Glen Wliite .
Stotesbury .
New River Collieries Company —
Eccles .
Sun . j
Slab Fork .
Winding Gulf .
McAlp’n .
Gulf Smokeless, Tams .
Loup Creek Col. Page .
Raleigh .
Pemhjrton Coal & Coke Company —
Big .Stick .
Affinity .
Pemberton .
Woodbay .
Wyco .
Sullivan .
Long Branch .
Hot Coal .
The New River Company —
Carlisle .
Summerlee .
Lochgelly .
Cranberry .
Beckley .
Mabscott .
Sprague .
Scarbro .
Goodwin .
M. P. Tipple .
Sugar Creek .
Trace Fork . ; .
Herberton .
Tralee No. 2 .
Mt. Hope .
Newlest No. 1 . . .
Wooflpeck .
•Skelton .
Gstego .
Hevil’s Creek .
Tralee No. 1 .
Algonquin .
Mullens .
Newlest No. 2 .
Tons.
37,851
27,659
23,828
26,384
6,739
24,371
24,133
20,613
18,363
18,169
16,215
14,948
7,378
3,974
10,604
10,545
10,360
9,350
8,855
7,180
5,873
5,139
4,899
4,402
3,843
3,091
2,652
5,640
5,427
3,954
3,345
3,204
2,553
2,343
2,135
1,600
942
900
819
760
702
413
200
Total
393,055
The directors of the LaFayette Coal & Coke
Company, Uniontown, Pa., elected the following
officers : President, Plarry Whyel ; vice-president,
George Whvel ; secretary and treasurer, A. D.
Williams. This company holds a 3,000 acre tract
in Marshall county on the Ohio river.
438
THE BLACK DIAMOND
[November 27
General Review.
Chicago Market.
Cool Weather Improved the Tone of the
Domestic Market — Better Business
Helps the Steam Trade.
Buying of Screenings Is Brisk with Sup¬
ply Short — Domestic Is Stronger
with Prices Rising.
The national coal market, viewed from any dis¬
tributing center, is in very much better position
now than it has been at any time in several
years. The situation is quite encouraging when
viewed from the point of view of the operator.
It is quite the opposite when one views it with
the eyes of the consumer.
The strength of the market rests primarily on
the improvement in business. In the east most
factories are running to capacity because they
have war orders to take up part of their output
and domestic business to absorb the rest of it.
The steam market in the west is strengthened
mainly by an improvement in business at home.
A shortage of cars everywhere is helping the
coal market by preventing an over-flooding of
different centers and even though the car supply
should be improved by some change in transporta¬
tion conditions, the mines are prevented from
turning out an oversupply of coal by a growing
shortage of labor. Thus the market not only is
strong now, but promises to remain firm for the
rest of the winter. This gives the operator, as a
rule, better conditions than he has had for some
time.
The coke market, right now, is commanding a
great deal of attention. The ovens in the Con-
nellsville district have recently closed some con¬
tracts for first-quarter delivery at $3.00 a ton and
have refused to commit themselves further than
the first of April. This is quite a contrast to the
attitude of the same operators a short time ago
when they were perfectly willing to contract at
that price for delivery durin.g the last half of next
year. Right now spot coke is bringing from $3.00
to $3.25, and while the operators would like to in¬
crease production, they cannot conveniently do so
because the supply of cars and labor is short.
Incidentally this activity in the coking district
is making the demand for slack coal quite strong
all through the central field. Coke ovens are
taking so much of it that a very srnall supply
remains for those who are equipped with stokers.
This is advancing the price of slack in _ Pitts¬
burgh, Cleveland. Columbus, and Cincinnati. An¬
other effect of this is the increased supply of
domestic coal from the coking coal belt and that
explains the weakness in several markets of the
price of smokeless lump and egg.
The lake season is just about at an end for
this year. Shipments lately have not been mov¬
ing because boats were in excellent demand^ for
the movement of ore and grain. While quite a
tonnage of coal was moved up the lakes, it is not
up to that of last year. Perhaps with the stocks
held over after the first of last May, the tonnage
available for use up until the first of April will
be about the same. However, iudging by the
nresent rate of movement from the docks to the
interior, the simply is not going to be enou.gh to
go around and some are looking with concern
upon the northwestern situation. Some of the
western mines have a better chance to sell coal
there than they have had for several years.
In the west one of the most consnicuous factors
is the almost unprecedented rise in the price of
screenings. The quotation, even on the low-grade
product, is now sixty-five cents a ton with
maximum prices ranging about eighty cents. This
is fully thirty cents a ton higher than is custom¬
arily paid at this time of year and is close to
fifty cents a ton above what was a common price
a few years ago. This is traceable directly back
to a better demand for coal for steam making,
but in part is due to the increased use of stokers
in manufacturing plants and on the railroads.
The Central Coal 8z Coke Company is trying
out a new five-ton White truck and the big
motor is taking care of the company’s retail
trade very nicely. At present the White is re¬
placing five teams, but Manager R. C. Goddard
at Omaha says that the splendid wither has thus
far made an adequate test impossible. “It looks
good,” he smiled, “but I can’t say that it is
more than an experiment as yet.” And, by
the way — though the expression is not intend¬
ed to convey an impression of casualty — the
Ford one-ton truck seems to be meeting with
popular favor, at least several dealers are using
this type.
Office of The Black Diamond,
Chicago, November 25.
The feature of the coal market in the west¬
ern territory for this week is the strength of
screenings. The market seldom has been
stronger, the prices rising ten to fifteen cents
a ton within the last week. This is in strong
contrast with prices on the same size at
this time a year ago. Then the market was
far from strong at prices ranging twenty-
five to thirty cents a ton lower.
The market today is quotable at a minimum
of sixty-five cents a ton even on low grade
screenings, while seventy-five and even eighty
cents a ton is being obtained on the better
grades. This is a price which usually rules
in midsummer for a short time. It is seldom
that it gets as high as that in the winter. The
price is due to better demand for current use,
rather than for any buying for storage pur¬
poses.
The railroads this week have begun to
store some coal to tide them over a possible
period of mine suspension. They are not quite
sure that there is going to be any strike next
spring in Illinois. Even so, they are sure
that there is going to be a good demand for
steam coal. Whether the railroads use it to
tide themselves over a strike period or whether
they use it to relieve themselves when the
market for coal is extraordinary for other
reasons does not matter much. The fact is
that they are buying coal because they now
think they are going to have need for it.
They are taking mostly lump of some size or
egg coal. This is relieving one section of the
market of a surplus of prepared sizes, which
might otherwise be bothersome as the do¬
mestic demand right now is not overly keen.
The Franklin county situation is brisk in
every department. Most of the mines are run-
jiing to capacity and are sold up on lump, egg
and number one nut. The prices are firm at
$1.75. Number two stove is selling for $1.50
strong; number three at $1.40 and other prices
proportionately high. The market is bare of
any suggestion of free screenings and those
who happen to have any for sale can very
easily get seventy-five cents a ton for them
at the mines. The minimum prices offered
by buyers is seventy cents. But very few
sales have been made at that figure this week.
The prices up to Thursday were:
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2-inch screenings
F. O. B.
Chicago.
$2.80
2.86
2.80
2.56
2.15@2.20
1.7.5@1.80
F. O. B.
Mines.
$1.75
1.75
1.75
1.50
1.10@1.15
.70® .75
The Williamson county situation is quite
strong with all sizes in demand. Lump, egg
and number one washed are sold more gen¬
erally today at $1.75 than at any time this
fall. One or two concerns are still selling at
$1.60 because they have idle productive capac¬
ity. However, such cases are rare, most op¬
erators holding for $1.75. The domestic
market was boosted by the sharp turn in the
weather a few days ago. Fine coal prices are
strong, screenings being seventy to seventy-
five cents. The prices up to Thursday were:
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.76
No. 2 washed . 8.15 1.40
Every department of the Saline county mar¬
ket is strong. Domestic sizes are now firm at
$1.75, mine run is strong at $1.15 to $1.20 and
screenings are in demand at a minimum of
seventy cents with seventy-five cents obtained
on most sales. The market up to Thursday
Saline County — Chicago.
T.ump . $2.65@2.S0
Mine run . 2.20
Screenings . 1.75@1.80
ll4-inch lump . 2. .35
F. O. B.
Mines.
fl.60@1.75
1.15
.70® .75
1.30
Central Illinois mines have been able to
make further sales within the week to rail¬
roads, some of the coal being for immediate
use by the railroads, and some portions of
it going into storage for use four or five
months hence. This, with the closing down
of two mines due to fires, made the demand
larger than the supply and strengthened all
prices. Domestic lump is now firm at $1.75;
screenings are strong at sixty-five cents. The
prices up to Thursday were:
Central Illinois —
Lump .
Egg .
Nut .
Mine run .
Screenings .
F. p. B.
Chicago.
$2.57
2.32®2.47
2.47
1.87
1.47
F. O. B.
Mines.
$1.76
1.50@1.65
1.65
1.05
.65
Clinton, Indiana, screenings are strong at
a minimum of eighty cents with some sales
being made at eighty-five cents. The do¬
mestic coal for the number four vein is quite
strong, with $1.75 being obtained in most
instances, although some sales are made at
$1.65. The prices up to Thursday were:
„ . F. O. B. F. O. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42®2.57 $1.65®1.75
No. 4 egg . 2.12 1.35
Nut . 2.12 1.85
No. 5 and 6 mine run . 1.87 1.10
No. 5 and 6 screenings . 1.57 .80
Knox county screenings are strong at a
minimum of seventy cents, and most sales are
being made at seventy-five to eighty cents.
Prices up to Thursday were:
F. O. B.
Knox County — Chicago.
Lump . $2.37
Egg . 2.37
Mine run . 1,87
Screenings . 1.57@1.62
F. O. B.
Mines.
$1.50
1.60
1.05
.70® .75
This week brought a better demand for an¬
thracite coal. For one thing, the cold weather
of a few days ago caused better buying gen¬
erally. _ Then, the retailers and others are
beginning to realize that a strike in the an¬
thracite field is imminent for next spring.
Better current business and some precaution¬
ary buying have improved the tone radically.
The smokeless situation is none too strong.
The demand for mine run has been just about
fair and some sales agents have wished that
the car supply might be a little tighter. Even
so, the price on mine run has held firm at
$1.40. Lump and egg continues to be a
trifle easy with $1.65 as a minimum, $1.75
as a common price, and $2,00 as a top figure.
The prices up to Thursday were:
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 3.70@4.05 1.65@2.00
Somerset county coal has been strong be¬
cause of a car shortage in the mining region
and because of a big demand in the east. Mine
run has been firm at $1.40. Lump and egg
has ranged between $1.65 and $2.00. The
prices up to Thursday were:
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine run . $3.45 1.40
Lump and egg . 3.70®4.05 1.65®2.00
A better demand at home and a livelier de¬
mand here has made the Hocking rnarket
strong at $1.60 to $1.75. The operators are
going back to their old circular figures again.
The market up to Thursday was:
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.25®3.40 $1.60®1.75
Splint coal has been in such demand in the
east that no surplus coal has been shipped
to the west. Consequently the market is
strong at $1.50 in open cars and $1.60 in box
cars; most sales were made on the latter basis.
The prices up to Thursday were:
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
114 -inch lump . $3.40®3.60 $1.50@1.60
Some eastern Kentucky operators decided
to advance the circular price on domestic lump
to $2.40. Others are taking $2.25 and some
sales are at $2.00. Other prices are corre¬
spondingly high. The market up to Thursday
as:
F. p. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
)mestic lump . $3.80®4.30 $1.00®2.40
;g . .• . 3.65®3.!)0 1.75®8.00
Connellsville coke is commanding $5.00 to
1.75 with emphasis on the latter price in Chi-
igo today. The spot demand has moved the
;^"-product price up to $4.95, a rise of twenty
mts a ton. Gas house coke is stronger be-
luse the new freight rate has already gone
to effect. Prices up to Thursday were:
Coke —
Connellsville .
By-product, foundry .
By-product, egg and stove
By-product, nut .
Gas house .
Chicago.
$.5.25®5.50
5.25@6.50
4.95
4.95
4.00
No. 22]
439
THE BLACK DIAMOND.
Pittsburgh Trade.
To Avoid a Possible Shortage of Coal
Later, Buyers Are Specifying to
Limit of Contracts.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., November 25.
There has developed in Pittsburgh what might
be called a many sided coal market or a market
of mystery, because of abnormal conditions of
trade in many lines, that influence the coal trade.
This may or may not last for some time, opinions
of various operators varying as to both the near
and distant future. It is too early to conclude
that the advancing tendency shown for some
weeks past will weaken with the close of lake
shipping, for while prices have not been adhered
to all along the line, the disposition of operators
is to look upward, with some entirely out of the
market, so far as 1915 deliveries are concerned.
Consumers fearing non-delivery later on, are
specifying to the full on contracts, and while no
large individual new inquiry is heard of, con¬
siderable new business is in prospect. Conditions
in one sense remain practically unchanged from
reports of a week ago save in that a decided drop
in the temperature has developed considerable ac¬
tivity in both coal, and heating coke for home
consumption, and the retail fuel dealer as well as
the smaller jobber are wearing a smile of content¬
ment, if not of positive joy. As should be the
case at this particular season a round among the
leading operators flnds them generally in a
“thankful” mood— fairly well satisfied with the
present, though, as stated, differing considerably
as to the future. However, it is not thought the
cessation of lake shipments will compel the clos¬
ing down of operations at many, if any, mines
because of the heavy demands of mills and facto¬
ries in this district for coal— the fact being that
with the existing shortage of labor and increasing
car shortage, it has been hard to make deliveries
on time, and it is reported that several railroads
will be in the market shortly for large tonnages
for stocking, against April 1st, that have been
holding back on account of the car famine, until
the lakes closed.
The Thanksgiving holiday will have the usual
effect of curtailing this week’s output of both
coal and coke. The departure of many Greek
laborers for their home country — following the
example of their Italian co-laborers — is having
some effect on the labor situation, though not to
a great extent. Fayette county Italians who have
responded to the call to arms will leave for their
native land and the firing line November 29. The
Guiseppi Derdi, an Italian steamer, will depart
from New York on that date with about 3,000
reservists on board. Of that number several hun¬
dred are from Fayette county. About 500 were
called from the county and few have turned a
deaf ear. Those who remain here will never
again be permitted to visit Italy.
Inquiry fails to develop any material change as
to prices on either coal or coke from figures given
here last week, though furnace coke has not re¬
covered the strength lost, but the coke operators
are still talking optimistically of $3.00 coke.
Announcement was made last Saturday that the
Republic Iron & Steel Company has authorized
the erection of another blast furnace at its plant
in Youngstown, Ohio. The new stack will have
a daily capacity of 600 tons of iron. It will cost
approximately $500,000, and erection will be
started at once. It will require about six months
to complete. The new furnace will give the Re¬
public eight blast furnaces in this district, in¬
creasing its capacity for pig iron about 200,000
tons a year, or to 1,500,000 tons.
The rivers are slowly falling and no coal is
going south from this harbor, though some con¬
siderable local activity is shown in the fourth and
fifth pools. A number of empty barges which
have been tied at the Sligo landing, owned by the
Monongahela River Consolidated Coal & Coke
Company were removed to the mines in the upper
Monongahela river the first of the week by pool
boats. The towboat Aliquippa, of the Jones &
Laughlin Company’s fleet, passed through the
local harbor with a tow of coal for the company’s
mill at Woodlawn. The A. R. Budd, owned by
the Diamond Coal & Coke Company, passed
through the harbor Monday with a tow of empties
for the mines in the upper Monongahela.
The J. V. Thompson troubles still occupy the
center of the gossip stage, and much speculative
talk is heard. It develops today that President
II. C. McEldowney of the Union Trust Company
of Pittsburgh, has refused to become a member
of a creditors’ committee to liquidate the holdings
of J. V. Thompson for the benefit of Thompson’s
creditors. This is a disappointment to the many
creditors of the former banker and coal land
speculator. The creditors of Thompson are of
the opinion today that the refusal of the Pitts¬
burg banker disposes of the last hope of settling
the affairs of Thompson through a creditors’ com¬
mittee.
Uniontown has one banker and business man in
W. A. Stone who has not given up hope of per¬
suading prominent bankers and financiers to ad¬
just the affairs of Thompson. It is known that
Stone will make further efforts in behalf of the
Thompson creditors this week. Stone is inter¬
ested especially in the Thompson unsecured cred¬
itors and those creditors are hoping he will yet
be successful.
Pittsburgh District News Items.
The semi-annual meeting of the West Virginia
Coal Mining Institute will be held in Fairmont
Thursday, December 9th. Governor Hatfield will
address the meeting.
The lack of laborers is holding back the opera¬
tion of about 1,500 coke ovens out of a possible
10,000 in the Brownsville region. In that region
8,500 are now in operation and the rest would be
fired at once if the necessary labor to operate
them could be secured.
The Cannonsburg Gas Coal Company, which
sunk a shaft north of the Standard mill, is driv¬
ing its entries and getting ready to mine coal on
an extensive scale. The shaft is 168 feet deep,
and eight entries have been driven. A tipple has
been built, and some coal is being taken out.
Cleveland Market.
Cleveland, Ohio, November 25. — (Special Cor¬
respondence.) — Coal men are at a loss to know
just what conditions will prevail after the close
of navigation with respect to those coals which
go especially to the lake trade. There is little
doubt that producers will endeavor to replace
their lake business with as much other trade as
they can secure. Moreover, many cars, tied up
for months in the lake business, will be released
and it is believed that there will be little trouble
thereafter in making deliveries to the various
markets. This will probably not only affect the
coals that have been going to upper lake points,
but others which have been held up to some ex¬
tent by the car shortage, and it is feared that
there will be a drop in price on many grades.
While the weather has been slightly cooler for
a few days, no material increase in the consump¬
tion of steam coal has yet been noted. At the
same time reports indicate that shops and facto¬
ries are all running full. The situation is un¬
doubtedly different from other seasons in this
respect, for the increase through the fall months
has not been as great as was anticipated earlier in
the year.
With the exception of two or three grades of
coal, the domestic business has not been satisfac¬
tory for the past several days. Smokeless coals
have presented an unsatisfactory aspect, due to
throwing more on the market than the trade de¬
mands. Seemingly the eastern trade is not taking
the amount that was going in that direction some
time ago.
Vessel tonnage remains scarce and it looks now
as if but few more cargoes would be loaded. It
is possible that a few boats will accept storage
coal, but even this is uncertain. Grain and ore
have usurped the coal tonnage to a great extent.
Shippers of No. 8 coals are looking for orders
with delivery to begin December 1st. This is due,
of course, to the fact that navigation will close at
that time. So far the prices prevailing last week
have not been materially weakened, neither have
they been strengthened. Quotations Tuesday
were as follows:
F. o. B. F. o. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.05@1.10 $1.95@2.00
Run of mine . .95 1.85
Slack . .85 1.75
Conditions as to supply and demand have not
changed with regard to Coshocton coal, although
prices remain firm as follows :
F. O. B.
Coshocton — Mines.
Lump, 4-inch screened . $1,70@1.75
l'/4-inch . 1.60@1.65
Egg and nut . 1.05@1.10
F. O. B.
Cleveland.
$2.40@2.45
2.30@2.35
1.75@1.80
As yet the supply of Pittsburgh slack is neg¬
ligible in the market, with no other sizes offered.
Quotations as follows ;
F. O. B. F. O. B.
Pittsburgh — Mines. Cleveland.
Slack . $0.85@ .90 $1.85@1.90
Massillon coals are stronger and the producers
are still far behind with their orders. Slack
prices have advanced. Figures as follows :
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 2.50 3.20
Slack . 1.05@1.10 1.75@1.80
Smokeless coals suffered another break this
week. There is a good supply in the market and
trouble has been encountered in moving it. Prices
quoted follow :
Smokeless-
Lump . .
Egg .
Run of mine. .
F. O. B. F. O. B.
Mines. Cleveland.
$1.90 $3.35
1.75 3.20
1.30 2.75
No change has taken place with relation to
Cambridge coal and prices are the same as quoted
last week :
Cambridge — -
Three-quarters
Run of mine.
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1.10 $2.00
1.00 1.90
.90 1.80
Fairmont slack is still scarce with no change in
the quotation from last week:
F. O. B. F. O. B.
Fairmont — Mines. Cleveland.
Slack . 1.90
It is possible that the close of navigation will
increase the receipts of -Kentucky coals in this
market, but as yet the price of Kentucky block
remains firm :
F. O. B. F. O. B.
Kentucky — • Mines. Cleveland.
4-inch block . . . . $1.90@2.00 $3.15@3.25
Quite a little Youghiogheny coal was handled
in this market the past week, with no noticeable
change in the quotations :
F. O. B.
Youghiogheny— Mines.
Iti-inch . $1.40@1.60
Three-quarters . 1.30
Run of mine . 1.20
Slack . 95@1.00
F. O. B.
Cleveland.
$3.40@2.50
2.30
2.20
1.95@2.00
Bergholtz coal has gained a good foothold in
this market as a domestic coal and the supply has
been taken promptly all through the season.
Prices for the past week are as follows :
Bergholtz —
G-inch lump. .
l!4-inch .
Three-quarters
Run of mine
Slack .
F. O. B.
Mines.
$ 1.70
1.45
1.35
1.25
1.20
1.05@1.10
F. O. B.
Cleveland.
$ 2.40
2.15
2.05
1.95
1.90
1.75@1.80
Wainwright slack has shown more strength
than usual the past week, but other sizes are
steady at the prices quoted :
Goshen — Wainwright Mines —
Three-quarter, domestic .
3-inch lump .
Lump .
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1.40 $2.10
1.80 2.50
1.65 2.35
1.05 1.75
Goshen slack advanced five cents a ton during
the past week and there was considerable business
in all sizes. Quotations as follows :
Goshen — ■
Three-quarters
154 -inch .
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1.30 $2.00
1.40 2.10
1.05 1.75
Hocking egg and slack remained at $1.70 on
track here, with prepared lump quoted at $2.20
delivered here, or $1.50 at the mines.
Cleveland News Notes.
Department heads, with a few guests, were ten¬
dered a dinner at the Hotel Statler Saturday
evening by the Cambridge Collieries Company, of
which J. VV. Ellsworth is the head. About fifty
persons were present. This is an annual affair
and is intended as a get-together meeting. The
guests are usually those who are in close touch
with the company’s work.
Anthony Howells, formerly prominent coal
operator of this state, died at the home of his
daughter, Mrs. J. S. Cockburn, in this city, on
Wednesday of last week. Mr. Howells held the
office of state treasurer from 1878 to 1880 and
served in the state senate from 1890 to 1892. He
was also United States consul at Cardiff, Wales,
for a number of years. His home was at Mas¬
sillon.
The noteholders’ committee of the J. PI. Somers
Company has notified holders of notes of the
company that in pursuance of the power originally
vested in the committee payment of interest on
the collateral trust notes given to creditors, pay¬
able December 1st, has been postponed six months
and that payment of the principal, due at the
same time, has been postponed for one year.
Business conditions have rendered it impossible to
realize on the Somers holdings, as was expected
when the arrangements were made, and this in
turn has caused the postponement of payment of
interest and principal on the notes.
440
THE BEACK DIAMOND
[November 27
Cincinnati Trade.
The Market Is Brisk, Due to a Better
Demand for Both Steam and
Domestic Coal.
Cincinnati, Ohio, November 25. — (Special
Correspondence.) — The market thi.s week is niorc
attractive to o[)erators ami salesmen than it has
been in some months, especially in the splint oper¬
ations. The car situation has eased up, especially
since the lake movement has slowed down, re¬
leasing many cars that had been held at the lakes
for unloading. Most of the Cincinnati operators
have stopped shipping, but one or two have con¬
tinued loading for the lakeside aiming to reach
the waiting vessel for the last cargo up, Novem¬
ber 20. number of operations are out of the
market for November, but are taking orders for
December shipment, the prevailing price for the
better West Virginia grades for shipment in
that month being $1.S5 for block and propor¬
tionate prices for the other grades. Nut and slack
and run of mine are very strong and approaching
premium. In fact, demand for every grade is
keeping up in good shape and all lines of dealers
are reporting good business.
Prices are better and holding firm for the better
grades of coal and, in fact, they are better for the
lower grades, nearly all being in demand as stated
above. Such grades as the better West Virginia
Cinderella and Miller’s Creek and other best
grades running for four and three and one-half
inch block, $1.90, $2 and $2.25. Egg is in good-
demand now at $1.75. Nut holds firm at $1.40
and slack, when at all available, runs from eighty
to ninety cents. In the Kentucky fields the gen¬
eral run of good coal is held firmly to $1.75 and
$1.80, for four-inch block. Washed egg com¬
mands $1.00 and nut and slack is strong^and al¬
most unobtainable, being mostly “cinched” earlier
on contract. A week ago these quotations were
given out, but with the statement that if an offer
of from five to ten cents below were made for
three to five car lots, it would be accepted, was
also made privately. The situation is almost re¬
versed now and the offer of three to five car
lots is liable to be made at five to ten cents ad¬
vance on the prices above quoted.
While it was reported in the last correspond¬
ence from this center that domestic lump in Po¬
cahontas was developing a slight softness it can
be stated now that that situation has been cured
by the weather and domestic lump is as strong as
is egg. Run of mine is still quite strong and
companies are not saying now that they could
take on a little more business. It is believed in
all quarters that as the winter develops the situa¬
tion will grow stronger until it will develop one
of the worst fuel shortages the country has ever
seen. Coal operators said this week that pleasant
weather would be really acceptable just now to
allow coal men to stock up and give the railroads
a chance to get their loads to the storage yards.
The labor situation is fair but not improving.
It is developing more and more toward embar¬
rassment to the mines. The holiday this week
is not expected to curtail production, for the
miners and operators will scarcely take the day,
the one being uneasy at the situation developing
as to scarcity of cars and fuel in the country and
the miners, not having been able to work con¬
tinuously, are not “flush” and desire to continue
to work. The consumption of the fuel will in¬
crease on that day also and unless all signs fail
the full carrying capacity of the railroads will
be invoked on that day as well as on others.
Cincinnati Trade News.
O. C. Ingcrsoll, of the Lorain Coal & Dock
Company, of Columbus, Ohio, was a visitor in
the city Tuesday.
General Sam Patterson, of Vivian and Cin¬
derella, W. Va., was a guest the early part of the
week of F. B. Raines, manager of Castner, Cur¬
ran & Bullitt, in Cincinnati.
John J. Laing, president of the Wyatt Coal
Company, and allied companies in West Virginia
fields, was at the offices of the company here
several days going home to Charleston Tuesday.
'I'he death of J. L. Pierson, the well-known
coal and lumber man of this city, was announced
'I'uesday and saddened coal men of the city.
While Mr. Pierson’s specialty was really real
estate and building, he was well known as a re¬
tailer of coal also.
By reason of the taking over of the mines of
the Hazard Coal Company, through purchase of
the bonds of the company, the headquarters of
that company have been removed from Louis¬
ville to Cincinnati and have been merged with
the Reliance Coal & Coke Company of this city.
Mr. William Polk, secretary and general manager
of the company, has been installed in the offices
of the Reliance company where he will manage
the sales of the specialty of the Hazard company,
“Blue Jacket” coal. The new addition to the
Reliance company will add some 500 to 600 tons
to the daily capacity of the company.
Denver Trade.
De.nver, November 25. — (Special Correspond¬
ence.) — This section was visited by a touch
of real winter weather for a few days last
week and for a while it looked like the coal
dealer would surely have his inning. Some
snow fell and temperatures fell to below freez¬
ing, but the storm ceased almost as suddenly
as it came, and for several days Colorado,
Wyoming and New Mexico have had weather
almost as warm as June. As a result the mar¬
ket buoyancy of the storm period has all been
dissipated.
So far as production goes, however, the re¬
cent weather changes have had little effect one
way or the other. There is a good de¬
mand for "all grades of coal, especially lignite.
Country dealers, while not placing orders to
any liberal extent, are going on the theory that
cold weather is already overdue, and they do
not intend to be caught short-handed. It is
said that the lignite production for last week
reached almost 90 per cent of normal capa¬
city.
In the Trinidad district every mine is work¬
ing steadily and the output for the present
week will compare very favorably with corre¬
sponding periods in previous years. The steel
mills at Pueblo are now employing 5,000 men
and their output is larger than for many
years. All departments have been working full
capacity, and during the past w;eek 90 per cent
of them have been on double time. This indi¬
cates a very healthy condition for this sec¬
tion during the winter months.
Walsenburg, Canon City and Routt county
output has suffered no decrease in tonnage
as compared with last week. There is a
much better demand for Routt grades now
than for several weeks.
There is no change in slack prices and the
demand for all grades is good. The recent
cold snap cleared the very small surplus of
bituminous.
The anthracite mines are running full time
with the outp^ut booked ahead for some time
to come.
The following prices for lignite, f. o. b.
mines, are ruling; For Denver delivery, lump,
$2.35 to $2.65; mine run, $1.50 to $1.65; slack,
$1.05 to .$1.25. For points outside of Denver,
lump, $2.50; mine run, $1.55 to $1.65; slack,
$1.05.
Duluth Trade.
Duluth, Minn., November 25. — (Special Cor¬
respondence.) — The much-mooted and long
talked of new coal dock for the Northwestern
Fuel Company on the Duluth side of the bay
is likely to materialize before very long. It is
understood that matters preparatory to build¬
ing are pretty well cleaned up and that fig¬
ures for construction work are likely to be
called on very soon. For the past two years
the company’s attorney has been engaged in
clearing titles to land on Rice’s Point, south
of Pittsburgh No. 7 coal dock, that being the
site decided on for the next coal dock of the
company, and that this work is virtually fin¬
ished.
In view of the fact that, to give itself ade¬
quate facilities on the Duluth side of the bay.
Northwestern has had to hold under lease for
a number of years Pittsburgh No. 6 dock, and
desires to have its own equipment as far as
possible, it is expected that the proposed new
dock will be put off no longer than neces¬
sary.
.\t present the equipment of the North¬
western company is its dock at the foot of
Fourth Avenue West, which is one of the
best located docks in the city for general local
distribution; and added to this is the dock
on Rice’s Point leased from the Pittsburgh
Coal Company. On the Superior side of the
bay the company has three fine docks, and has
felt to be at rather a disadvantage on this
side. Should the new docks be built it will
be used for delivering in carload lots to the
range roads, and for business distribution in
the western end of the city. It is likely that
the new dock will be moderate as to size,
for the head of the lakes is rather over¬
equipped in the way of coal docks as it
stands.
The recent succession of storms has held
up a large coal fleet at various points between
here and Lake Erie, and the boats are just
beginning to arrive. Tuesday was the first
day that any boats have arrived with coal in
several days, and at that time eleven boats
arrived practically in a bunch, bringing ap¬
proximately 100,000 tons of coal, the largest
amount to arrive in one day this season. Still
others are expected daily, for boats have been
held at various points all down the line.
Mr. and Mrs. Oliver C. Wyman of 2500
Park avenue, announce the engagement of their
daughter, Katherine Ristine, to James Albert
Vaughan of Minneapolis. Mr. Vaughan is
vice-president of the Clarkson Coal & Dock
Company.
Indianapolis Trade.
Ini)i.\n.\polis, Ini)., November 24. — (Special
Correspondence.) — The demand for steam coal is
improving right along in Indiana. Dealers and
operators here say they note a better demand for
steam grades. The improvement that has been
anticipated so long seems to have set in. The
prices have not been advanced but the trade is
feeling more optimistic than it has for a long
time.
It appears from reports coming from many
Indiana cities that industrial concerns are ex¬
periencing a revival of orders and that the out¬
look for business for the next year is quite satis¬
factory. One of the encouraging features here is
that mercantile business is better than it has been
for a long time and collections are satisfactory.
Some of the Hoosier cities have not hit their
stride yet, but the reports from all quarters show
that conditions are improving. The railroads are
doing a better business than they have for several
months. In Indianapolis the bank clearings are
increasing. Postal receipts are going up steadily.
The movement of grain to and from Indianapolis
exceeds the mark established for the same time
a year ago. These facts are set down here merely
as straws indicating a general tendency which un¬
doubtedly will be of great value to the coal trade.
There is an increasing number of inquiries for
steam coal and many industrial concerns are
taking more coal than they contracted for a year
ago. Mine run is selling from $1 to $1.20 a ton
at the mines.
A car shortage is imminent and it would not be
surprising if mine run should be considerably
higher before the end of the winter. The con¬
sumers who failed to make contracts are liable
to suffer on that account as there is very little
coal on the market now that is not sold before
it leaves mines.
The supply of domestic is not very large. Re¬
tailers report a nice trade in all domestic grades.
There has been practically no change in domestic
prices here within the last month. The following
prices are being quoted by the wholesalers ;
Indiana —
Mine run, No. 4 .
Mine run, Nos. 5 and 6....
Nut .
Egg .
1*4 -inch steam lump .
No. 4 screenings .
Nos. 5 and 6 screenings....
2j4-inch domestic No. 4....
No. 4 domestic .
Nos. 5 and 6 domestic .
Brazil block domestic .
No. 1 washed coal .
No. 2 washed coal .
Southern Indiana Field —
Mine run .
Domestic lump .
O. B.
F. 0. B.
Mines.
Indianapolis.
$1.60@1.60
1.55@1.65
. . 1.20@1.30
1.70@1.80
1.80@1.90
.. 1.25@1.35
1.75@1.85
1.20@1.25
1.05@1.13
.. 1.50@1.5.5
2.00 @2.0.')
.. 1.60@1.6.5
2.10@2.1.5
1.90@2.I0
. . 2.25@2.50
2.75@2.50
1.75
2.25
1.65
2.15
. . 1 n rtii 1 1 n
. . . 1.40@1.50 .
John W. Coneys, superintendent of the Penn¬
sylvania lines here, says that the train service on
their roads is twenty-five per cent larger than
it was a few months ago. He says there is a
shortage of coal cars. He declares that there is
a notable increase in the movement of coal, steel
and logs. The Pennsylvania company has just
arranged to build a new $300,000 freight house
here.
R. K. Brown of the Coal Hill Coal Company
Omaha, and chairman of the Omaha Good Roads
Delegation, led his crowd of highway boosters to
New Orleans last week, where they attended
a national gathering of good roads enthusiasts
and exerted their influence toward having the
proposed Jefferson Highway pass through his
city.
No. 22]
THE BLACK DIAMOND
441
St. Louis Trade.
St. Louis, November 25. — (Special Correspond¬
ence.) — Owing to the continued mild weather, a
number of grades of coal are suffering somewhat,
but prices on the whole remain about the same.
Domestic coals are, however, undeniably weaker,
and prices are being shaded in order to keep,
coal moving. The situation has not as yet gotten
to a general breaking in price, and will take only
a few days of brisk weather to see all grades of
coal firmly back at the list.
The Standard District has suffered badly dur¬
ing the last week. They were cut down to about
half time. Lump and egg have been shaded
somewhat. Screenings and $2 nut on the other
hand has been advancing. This is entirely natural
at this time of the year, and is to be expected.
From past experience, one would feel warranted
in assuming that a general advance of about five
cents a ton per week on screenings from now
until the first of February \*ill be what we should
expect. The current prices on Standard coals are
as follows :
E. O. B.
Standard Coal — • Mine.
6-inch lump . $1.30
6x3-inch egg . 1.25
2-inch lump . 1.05
Steam egg . 90
No. 1 nut . 1.15
No. 2 nut . 80
Mine run . 85
Screenings . 10 ,
F. O. B.
St. Louis.
$1.87J4
1.82'/2
1.62 yj
lAT’A
1.72’A
1.37y^
li2A
■ 97A
The steam coal from the mines in the northern
district, around Springfield and Staunton, are
finding a steady demand. Domestic grades have
suffered considerably, and in some instances the
six-inch lump from this district has been quoted
at an even less price than Standard, in the St.
Louis market. A rather peculiar situation, as
they generally bring a differential of twenty-five
cents a ton more than Standard coal.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump . $1.50 $2.07yj
2-inch lump . 1.25 1.82A
Screenings . 40 .97A
Williamson county mines seem to be running
betted than almost any other district in the state,
due partly to the fact that these operators are in
a good many instances making concessions to
keep the coal moving. Also to the fact that a
large amount of this coal is under contract.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.40@1.75 $2.02 A @9. i7 A
3x2-inch nut . 1.20@1.75 1.92yi @2.4754
Screenings . .50 1.22 54
Franklin county operators report business fair.
The prices in Franklin county are being main¬
tained better than in any other part of the state
on domestic sizes. Steam sizes are much stiffer,
as they have started putting it on the ground to
avoid throwing it on the market at a ruinous
price.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump, egg or nut . $1.75 $2.4754
No. 2 stove . 1.50 2.2254
Screenings . 60 1.3254
The demand for anthracite continues to hold
up in spite of the mild weather. Chestnut is mov¬
ing freely in the country, though in the city the
business is a littl? dull.
Anthracite —
Chestnut .
Stove or egg. .
Grate .
F. O. B. St. Louis.
. $7.55
. 7.30
. 7.05
Smokeless coal and coke are dull at the present
time.
F. O. B. F. O. B.
Mine. St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.25
By-product coke (all sizes) . 4.50
The prices on Illinois soft coal, f. o. b. East St. Louis.
Madison, Venice or Granitz City, Ill., are 20 cents lower
than the above quoted St. Louis prices.
Louisville Trade.
Louisville, Ky., November 25. — (Special Cor¬
respondence.) — The only noticeable change of
market conditions during the past week has been
due to colder weather over this'territory, and this
change, to the extent of slightly strengthening
the market for domestic coal, has not been of a
pronounced nature. It looks as if the market will
be a weather proposition from now on as to all
grades of domestic coal, with not very much
likelihood that prices will at any time during the
winter rise to abnormally higher levels, but with
fairly good assurance that a market will be af¬
forded for a large tonnage of coal at better than
the cost production.
In regard to steam sizes the outlook is consid¬
erably more encouraging, though the demand for
same is not quite so keen as was the case a
month or six weeks ago. In regard to fine screen¬
ings, however, the approach of winter and the
outlook for a suspension of mining next spring
are undoubtedly having some effect on the largest
buyers, who are in the market trying to tie up
coal for delivery over several months time, asking
quotations on a small amount of coal from each
one of numerous producers and shippers with a
view thereby to protecting their requirements un¬
til the end of the winter. There is every likeli¬
hood, however, that before long the buyer who is
relying on open-market purchasing will be in a
more or less unfortunate position as compared
with industries who are protected under contract
as the open-market basis for screenings has been
already above the contract basis by five or ten
cents per ton and apparently will widen the gap
week by week. The demand for four-inch, six-
inch and straight run-of-mine coal, however, is
by no means as strong as it was some time ago.
Retail conditions in Louisville are somewhat
healthier since the twenty-five-cent price advance
which went into effect about a week ago and-
dealers are more optimistic and more inclined to
carry a full supply of fuel. Buying in the coun¬
try points, however, has somewhat decreased in
volume as the long period of dry fall weather was
availed of by farmers to lay in their winter
stocks.
Car supply on all railroads in the Kentucky
fields, both eastern and western, has considerably
relaxed, although the Southern Railway is an ex¬
ception to this and is serving the mines in the
Middlesborough district with not exceeding four
days’ car supply each week. Furthermore, the
Southern Railway some days ago placed an em¬
bargo on shipments of commercial coal by any
of its contract mines until its fuel contract re¬
quirements had been discharged. This condition
together with a considerable shortage of labor
which is reported at the mines in this district is
causing the operators considerable anxiety.
In general it may be stated that labor is less
plentiful but that car supply is more plentiful than
at any previous time during the past several
months, but with a few weeks of severe weather
in December or early January the movement of
cars would be considerably hampered and a short¬
age would speedily develop.
Prices quoted on standard eastern Kentucky-
Tennessee domestic coals are about as follows:
6-inch mine rurf. . 90@1.00
4-irich steam . 80@ .90
Block . $1.75@2.10
Esg . 1.20@1.50
Steam mine run . 1.00(2)1.10
High .grade nut and slack . .75
Low grade nut and slack . 40@ .50
Omaha Trade.
Omaha, Neb., November 25. — (Special Corre¬
spondence.) — While the rank and file of Ne¬
braska citizenship is offering thanks for the
prevailing lovely weather, local coal men are
groaning their disgust over conditions which
have kept the domestic business very quiet.
Several times during the past week, the hopes
of the trade were raised only to fall when
a threatened “cold wave” disappeared. Thus
while the trade is beseeching the atmosphere
custodian for “some real weather,” stocks in
the hands of local dealers remain good. Job¬
bers, however, report a surplus of steam coal
and an active demand for domestic grades.
Petroleum coke is still holding a prominent
place in the Omaha fuel market and the Haven
Coal Company comes forward with the proph¬
ecy that unless anthracite is maintained at a
high standard, it will lie replaced by coke.
Nevertheless, retail dealers here expect to or¬
der freely of anthracite liefore the advance in
price becomes effective December 15.
The following prices are quoted by local
jobbers, f. o. b. mines:
Franklin County —
Better grades lump, egg and nut . $1.75
Some grades, egg and nut offered at . 1.50
Montgomery County —
Lump . 1.35
Lgg . 1.35
Washed nut . 1.50
Kansas —
Cherokee nut . 1.85@2.0n
Cherokee slack . 1.25
The market is very long on slack and a good
deal of coal is held on demurrage.
Iowa-
Walnut block chunks . 2,00
Iowa nut . 1.35@1.50
Iowa scr-enings. . 40@ .75
Iowa mine run . 1.35
A little anthracite, in nut and egg sizes, is
offered at from ten cents to twenty-five cents
a ton off circular.
Detroit Trade.
Detroit, Mich., November 25. — (Special Cor¬
respondence.) — With low temperature, accom¬
panied by cold wind and snow flurries serving as
a visible indication of the presence of winter,
domestic coal users are beginning to come to
the front with greater promptness and retail
yards have experienced a considerable accelera¬
tion of business during the week. So far the
shippers and jobbers have not benefited in any
large degree, although there is said to be a slight
expansion of their business, which provides basis
for expectation of larger activity in the near fu¬
ture.
Moderate improvement also appears to be de¬
veloping in the steam coal business, this being off¬
set, however, by such drawbacks as car shortage
and railroad embargoes. The change for the bet¬
ter in the steam coal trade is described as being
not so much in the nature of an increase in
sales as in the appearance of a more receptive
attitude on the part of consumers. Orders, though
small, are given with greater regularity and seem
to reflect a more steady consumption of coal.
Interest continues most active in the small
sizes, which are less plentiful than the larger
coal. Some of the shippers are finding it dif¬
ficult to get enough of the small sizes for their
customers. Besides the condition of car-short¬
age reported from various mining districts, par¬
ticularly along the lines of the C. & O. and the
B. & O. railroads, the transportation situation has
been complicated locally by the operation of the
embargo, which was raised last week by the
Grand Trunk railroad against freight shipments
consigned to Detroit. The embargo was against
shipments transferred from connecting lines, cov¬
ering also shipments originating on the (jrand
Trunk lines after November 16. While the time
tentatively set for removal of the embargo is this
week, there is a suspicion among some of the
coal men that the restriction is merely the first
of a series of such embargoes that may be placed
in effect at any time.
By its operation, not only were shipments of
anthracite over the Grand Trunk from Buffalo
suspended, but the movement of bituminous coal
over the Shore Line route from Toledo also was
cut off. While the same routes are covered by
other roads, the shortened service occasioned
much inconvenience. Renewed demands for an¬
thracite are coming to retail dealers owing to the
wintry weather conditions. Their stocks appear
to be lasting longer than was expected and the
shippers are not yet doing any considerable
amount of business.
With the close of the lake navigation season,
probably not more than three weeks distant, coal
shippers are finding it very difficult to get boats,
the. delays to which carriers have been subjected
because of stormy weather, causing managers to
exert every effort to seek dispatch for down-
bound cargoes by avoiding loading for the up-
bound trip.
Prices in the local market
on the mine
shipment
orders are as follows :
F. O. B.
F. 0. B.
West Virginia Gas —
Mines.
Detroit.
Three-quarter lump .
$1.00
$2.40
Mine run .
.90
2.30
Slack .
.60@ .75
2.00®2.15
West Virginia Splint —
Four-inch lump .
. 1.45@1.75
2.85®3.15
Two-inch lump .
. I.20@1.40
2.60®2.80
Three-quarter .
1.10
2.50
Mine run .
.90
2.30
Nut, pea and slack .
. .55@ .65
1.95®2.05
Smokeless —
Lump and egg .
2.25
3.85
Nut .
1.75
3.35
Slack .
. Open
Open
Mine run .
1.40
3.00
Kentucky Splint —
Lump . .
. 1.75@2.00
3.15®3.40
Egg .
. 1.25@1.40
2.65@2.80
Nut, pea and slack .
.65
2.05
Fairmount — ■
Three-quarter steam lump .
. .85® .95
2.25@2.35
Mine run .
. .70® .80
2.10@2.20
Slack .
, Open
Open
Hocking Valley —
Shaker three-inch limp .
1.75
2.90
Shaker egg and nut .
1.15
2.30
Domestic lump .
1.50
2.65
Three-quarter lump .
1.35
2.40
Mine run .
. 1.00@1.10
2.15®2.25
Nut, pea and slack .
Open
Open
Pittsburgh No. 8 —
Three-quarter lump .
1.05
2.20
Mine run .
.95
2.10
Slack .
Open
Open
Jackson Hill —
Domestic lump .
2.50
3.65
Cambridge —
Three-quarter lump .
1.20
2.35
Mine run .
1.10
2.25
Pomeroy —
Two and three-inch lump .
1.60
2.75
Egg .
1.35
2.50
Slack .
Open
Open
Shack .
. .95@1.00
1.65(^2.00
442
THE BLACK DIAMOND
[November 27
New York Trade.
Very Brisk Anthracite Trade — Soft Coal
Is in Short Supply and
Prices Soar.
Office of The Black Diamond,
New York, November 25.
'I'here is more activity in the antliracite trade
this week than has been the case heretofore.
'I'he market has been stimulated for several
reasons. One of these is the cold weather
that is lieing felt in most of the territory
that consumes anthracite. This has started
domestic buying on a large scale, and many
of the retail dealers find that their supplies
are not as large as they would like. Hence,
there are hurry calls for wholesale shipments.
Congestion of freight of all descriptions at
New York, is causing considerable delay in
the transhipment of coal from the Jersey ports
to Long Island and New England. Also some
delay is being experienced by tidewater re¬
ceivers, as coal is not moving as promptly
from mine to tide as is customary. Some of
the side tracks of the railroads terminating
at New York tidewater are glutted for miles
with carloads of war material for export, this
congestion due largely to the inability of
shippers to secure vessels. This has brought
about the use of a great many barges and
scows around New York for loading these
wares on until ships become available. This
has brought about a shortage of harbor boats,
so that those dealers who have been de¬
pendent largely upon outside boats to move
their anthracite, are now experiencing great
difficulty in getting coal moved promptly and
also at a reasonable price. This situation
does not offer much improvement for the
present.
In New York city there is a great demand
for red ash coals, and the companies that mine
this coal are having the business offered them
that they can take care of. Also, the de¬
mand for stove is beyond the present supply,
while many of the shippers of chestnut are
over-sold on this size. Egg is the only one
of the domestic sizes that is long.
The all-rail trade is good in all directions
with shipments considerably restricted because
of the inability of shippers to secure a suffici¬
ent number of cars. Many shipments to the
west are held up because box cars are not
available. While premiums on stove and
chestnut are not yet announced by any of
the individuals, it is predicted a serious snow¬
storm or freeze up on some of the lines or
roads, would bring about such a shortage that
buyers would willingly pay ten or fifteen
cents for prompt shipment of these sizes.
The demand for the steam sizes is ex¬
cellent. This applies particularly to the high
grade coals, which are practically out of the
market at the upper New York harbor ports.
Prices are very firm on all of these coals for
good grades.
There is a good demand for pea coal, and
good grades sell at the full circular. Some
inferior coal was offered at the lower ports
on Tuesday at $3.25 per ton which is the
bottom price.
On Tuesday the Interstate Commerce Com¬
mission announced that the application of the
recent changes in anthracite freight rates to
tidewater would not be made until January
1st, 1916. The first ruling of the commission
was that these rates would go into effect on
December 1st.
Upper
Lower
Ports.
Ports.
Rroken .
. $5.10
$5.00
. 5.35
5.25
Stove .
. 5.35
5.25
Chestnut .
. 5.60
5.50
Pea .
. 3.55
3.45
Special grades of red ash and other high-
grade coals at the lower ports sell at twenty-
five to fifty cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows;
Egg . $5.05 and up
Stove . 5.20 and up
Nut . 5.20 and up
Pea . 3.25 and up
Buck . 2.30 and up
Rice . 2.00 and up
p.arley . l lS and up
The Bituminous Situation.
The bituminous market continues very ac¬
tive, with production largely curtailed because
of insufficient labor and inadequate car supply.
The car question appears to be growing more
serious each week. Last week it was bad
throughout the entire week, some operations
during the last two or three days of the week
not being able to work at all, because there
were not enough cars furnished them to war¬
rant their starting up the mines.
This situation has brought about a serious
shortage of bituminous coal with a great many
consumers, and it is frequently the case that
a shipper with some free coal is able to place
it promptly and at very satisfactory prices.
This week some sales of Pennsylvania coals
have been made up to $1.75 per ton, with fre¬
quent sales of $1.65 per ton at the mines, and
$1.50 seems to be about the average price for
any kind of good coal. Inferior coals are sell¬
ing readily at $1.40, the Latrobe selling for
eastern shipment at $1.35. Nearly anything in
the way of coal along the Western Maryland
commands $1.35, these prices showing an ad¬
vance of forty to fifty cents a ton over normal
prices. Most of the shippers of the good
grades of Pennsylvania coals are entirely out
of the market, and they are experiencing great
difficulty in mining a sufficient tonnage of
these coals to take care of contract require¬
ments. On the other hand, they find that a
lot of their contractors, would willingly take
just at this time, from fifty to one hundred
percent more than the regular monthly quotas,
were the mining company willing to furnish it.
There are some of the trade who do not
believe that the coal operators appreciate just
how short certain consumers are, and how
large their requirements are going to be dur¬
ing the next two or three months.
As pointed out in this column last week,
shippers of coals to New England tidewater
ports are experiencing great difficulty in get¬
ting vessels, especially from Baltimore and
Philadelphia. It is said that $1.25 per ton
from Philadelphia to Boston and common
points would be willingly paid, and a schooner
was offering this week at $1.40 from Hampton
Roads to Boston.
At the New York harbor ports there is
very little free coal to be obtained, and prices
are very firm at about the range named above.
Slack coal has sold in the Fairmont region as
high as $1.25, and in the Reynoldsville region
$1.35 has been named.
The Vessel Situatioh.
Coastwise rates are advancing, though it is
difficult to obtain tonnage at any price. From
Philadelphia to Boston and common New
England points the quotation is $1.15 to $1.25,
but practically no boats are to be obtained
at these prices. From Hampton Roads $1.25
to $1.40 is about the range. Off-shore rates
continue to advance, but very few fixtures
have been made, as present rates to the Medi¬
terranean are prohibitive.
We quote current rates for freight as fol¬
lows:
From Hampton Roads to Boston, $1.20 to
$1.40 is about the range; to Portland and
points east of Boston, from $1.15 to $1.35. To
sound points, $1.00 to $1.25. From Philadel¬
phia to New England points, about five cents
under the Hampton Roads rates.
From New York to sound points as fol¬
lows: Bridgeport, thirty-five cents; New
Haven, forty-five cents; Providence, fifty cents;
New Bedford, fifty-five cents. To Boston,
around cape, sixty to seventy cents; through
canal, seventy-five to
eighty cents.
Harbor
rates twenty to twenty-five cents.
Current quotations
on bituminous
coal in
spot lots are:
F. 0. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
$1.50
Ordinary .
. 2.90
1.40
Medium grades .
. 2.80
1.30
Cambria County —
Best Miller vein .
. 3.20
1.65
Medium grades .
. 2.95
1.45
Cheaper grades .
. 2.85
1.36
Clearfield County —
Best £;rade .
. 3.05
1.45
Ordinary grades .
1.35
Indiana County —
Best grade .
1.45
Medium grade .
1.35
Maryland —
Georges Creek big vein. . . .
. 3.25
1.75
West Virginia —
Ordinary grades .
1.35
Best gas, ^-inch lump .
Best grade, run of mine...
. 2.90
1.35
. 2.S0
1.00
Gas slack .
1.00@1.25
New York Trade Briefs.
The Boston & Maine Railroad is said to
have an inquiry in the market for bituminous
coal to be delivered at the rate of twenty
cars a day from the present, up to May 1st,
1916.
L. S. Evans, president of the Eastern Coal
& Export Corporation, of Richmond, Va., was
in New York on Monday.
• Emil Kahn, president of the Haddock Coal
.Sales Company, No. 17 Battery place, has
returned from a visit to Chicago.
A. G. Bailey of the Fuel Testing Company
of Boston, was calling on members of the
New York coal trade on Tuesday.
Last week at Charleston, W. Va., the Elk-
horn Coal Corporation was incorporated. It
has taken over the holdings of the Elkhorn
Fuel Company and the Elkhorn Mining Com¬
pany, with operations in eastern Kentucky.
The capital stock is $28,600,000. The incor¬
porators are Alfred Dryer, New York;
Nicholas F. Lenssen, Englewood, N. J.;
Edward G. Kerr, New York; Louis F.
Schwartz, Jr., New Rochelle, N. Y., and Frank
C. Titus, New York. The state of West Vir¬
ginia received a fee of $4,806, the largest paid
in twelve years.
.\n item apeared in the New York Sun on
Tuesday to the effect that iron founders in
New England and on the Atlantic seaboard
are finding much difficulty in securing coke
on contracts, and have been obliged to pay
as high as $3.25 to $3.50 per ton at the ovens
for foundry coke. Reports come from nine
or ten different founders within the last few
days that they are urgently in need of fuel.
Blast furnace interests are also finding much
difficulty in obtaining an ample supply of
forty-eight hour coke and have paid as high
as $3 a ton at the ovens in the last few days.
Shippers are glad to obtain open cars if the
railroads will make deliveries on contract. In
normal times box cars are insisted upon by
some of them.
From some time past, there have been
rumors in the trade that the New York Steam
Company, one of the very largest users of the
anthracite steam sizes of coal in New York for
making steam, which it distributes throughout
certain sections of New York City, would
change from anthracite to bituminous coal.
This lent interest to the statement made last
week that this company will erect a service
station on Burling Slip on a lot purchased
about ten days ago. The property com¬
prises Nos. 174 to 180 Water street. No. 2 to
No. 10 Burling Slip and No. 232-234 Pearl
street, the block front on the south side of
Burling Slip between Pearl and Water street.
The property fronts 174 feet on Burling Slip,
ninety-seven feet on Water street and forty
feet on Pearl street.
Once more the high prices of oil are caus¬
ing concern with those companies like gas
companies that use large quantities of this
fluid. As was stated in The Black Diamond
last week, a certain ship-owner is now pay¬
ing about $60 per day additional for oil
for fuel for his ships, over former prices.
Last week some interesting testimony was
given before the Thompson Legislative Com¬
mittee, in which the Kings County Lighting
Company figured. This company supplies gas
to the Thirtieth ward in South Brooklyn, and
there is a contention before the Public Serv¬
ice Commission as to whether the company
should charge ninety-five cents or eighty-five
cents for gas. Commissioner Williams has
written an opinion that the company should
be permitted to charge ninety-five cents. Com¬
missioner Hayward upheld Commissioner Wil¬
liams on virtually all of his figures except the
cost of manufacturing gas. He said that the
Kings County Company had made a contract
for oil which he did not consider bona fide for
several reasons. He explained that whereas the
company had been paying 4.18 cents a gallon
for oil, it suddenly made a contract by which
it was to pay 4.575 cents. This made a dif¬
ference of six cents a thousand feet of gas.
New Pennsylvania charters have been granted
The Ideal Coal Company. Capital stock, $5,000.
Treasurer: A. W. Evans, Ebensburg, Pa. In¬
corporators : Charles C. Evans, Leonard S.
Jones, Ebensburg, Pa. The Langloth Coal Com¬
pany. Capital stock, $5,000. Incorporators:
James I. Brownson, Washington, Pa.; Alva'n E.
Donnan, Washington, Pa. The Burtner Coal
Company. Capital stock, $25,000. Treasurer: A.
F. McCall, Punxsutawney, Pa. Incorporators :
C. P. Burtner, Philadelphia; H. G. Bowers, W. A.
Bowers, I. R. Bowers, all of Punxsutawney, Pa.
No. 22]
THE BLACK DIAMOND
443
Philadelphia Trade.
A Turn of the Weather and an Increased
Shortage of Cars Gives the Coal
Market a Run-away Trend.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, Sovember 24.
Three things happened this week ; It snowed ;
the car shortage tightened, and the bituminous
market went crazy in spots. Some folk are talk¬
ing two-dollar coal and some cannot see where
any such flip-flop is justified. The whole situ¬
ation is up in the air, and, speaking soft-coalwise,
the operators are in the saddle. For this very
reason all eyes are on central Pennsylvania and
watching what is happening on the Western
Maryland and Baltimore & Ohio railway lines.
At the tail end of last week there was a general
onslaught made by western Massachusetts and
Connecticut buyers in the central Pennsylvania
fields. The tide water sections of these states
were first to wake up to the situation and while
cheap coal was obtainable at Hampton Roads,
boats were sky-high on charter prices. The
scramble that followed was soon felt on the
trade that is served all rail from the Pennsylvania
fields. Operators, who have cars to move coal
and those who have free production over con¬
tract, have been holding a regular auction sale
method of disposal of their coal. Prices on the
day’s output are made on the highest bid. Sales
have been made from $1.35 to $1.50 in the Clear¬
field territory. For Quemahonings the price was
a dime higher.
Western Maryland coal has been holding the
center of attraction since prices started aviating.
The next high-water mark was reached this week
when quite a neat tonnage was sold at $1.45 for
New England delivery. A car shortage — a rare
occurrence on this line — was given as the under¬
lying cause of the further up-turn in price. Som¬
erset county coals are hardest hit of all in the car
famine that has now reached an acute stage. The
supply on the Baltimore & Ohio road is tighter
than has been known in years and prices have
advanced slowly but surely.
The question of price is all absorbing locally.
As has been pointed out in these columns, the low
grade coals have had the limelight and have
shown the greatest advances. However, within
the past ten days there has been a steady up-turn
in the better coals and there has been a gradual
increase of a dime to a quarter on the ton. Some
of the steel mills are storing coal right now, and
if they enter the market for any great amount
of stocking it is thought that there will be as
great a response in the high-grade lines as the
lower brethren have shown.
Business at the piers has been dropping per¬
ceptibly. The tonnage going into export has been
severely cut down from this port in the past
couple of weeks. Even coast-wise trade in bi¬
tuminous has shown a decrease. The practice of
“shipping to tide,” which is overdone when there
is plenty of free coal, has gone to the opposite,
tangent. Those who want to speculate are turn¬
ing their attention to the all-rail route to New
England points of consumption.
Anthracite Situation
A little flurry of snow and brisk weather that
smacks of winter has worked wonders in the
hard coal trade. The call from the local retail
yards is now for the whole range of sizes with
pea coal showing the greatest volume in the move¬
ment. Steam sizes, which have been strong, have
even shown an increased demand. In fact, some
of the independents who have had surplus coal
of this kind have had to shut down on some of
the increases in delivery which have been asked.
Erom the regions comes the information that
the car shortage has touched that section. A mid¬
week dispatch from Shamokin stated that numer¬
ous collieries in that section suspended operations
temporarily because of a scarcity of cars. The
same holds good for the upper regions, according
to the local representatives. As a reason for
closing down also. Thanksgiving day and pay
day the end of the week will mean a cut down in
production for the next five days. This will cut
quite a figure in the year’s production, which is
now running about three million tons shy of the
output of 1915.
Retailers are still holding to the prices that
have prevailed since the beginning of the month.
There is an intimation that quite a change can
be looked forward to with the coming of the new
year. Both companies and independents who
have cut prices to move certain of the sizes say
that the stocks have been cut down and produc¬
tion curtailed to a degree that full circular will
have to be met. This means that the price-cut¬
ters here will have to readjust their prices or face
a loss.
Philadelphia News Notes.
William Coale of Coale & Co., of Cumberland,
Md., made a pre-holiday visit to the local offices
of his company here.
Harry K. Courtright, head of the Cortright
Coal Company, who has been • suffering from a
severe cold, spent the holiday with his family at
Atlantic City.
Dr. T. R. Williams and E. E. Hewitt of the
Dilltown Coal Company spent a couple of days
this week visiting the local trade.
C. W. Stall, whose headquarters is in Lewis¬
ton and who is interested in various operations
in the central Pennsylvania district, was in the
city on Tuesday.
A. A. Zane made a trip to the Arrow mines
this week to speed up production and look over
the car situation. Good. Smith was also away
on a short trip to New York.
William Mason of the Mason-Hefflin Coal
Co. was wearing a smile a mile wide early in the
week and accepting the congratulations of his
fellow retailers. It was a boy.
Harry K. Stauffer, connected with B. Nicoll &
Co., who has been ill and underwent an operation
in a hospital at Elmira, N. Y., is able to be about
again. He was in the New York offices of the
company on Tuesday and left for his home up¬
state to spend the holiday. ,
Friends of Charles E. Sayre, head of the Sayre
Coal Company, with offices at South Bethlehem,
were shocked Wednesday morning to hear that he
died suddenly in his office in that city on Tues¬
day. Mr. Sayre was a nephew of the late Robert
H. Sayre, who, with Asa Packer, was one of the
big figures in the construction and up-building of
the Lehigh Valley railroad. In his younger days
Mr. Sayre was connected with this road as its
general eastern freight agent and in other ca¬
pacities. He was fifty-six years of age and is
survived by a widow.
Papers for the incorporation of the firm of
Howard D. Pfeiffer & Co. were forwarded to
Trenton, N. J., this week, though the organization
of the company was effected a couple of weeks
ago and business has been done under the new
firm style. The new corporation will act as the
selling agents for Chaffee Coal, a Western Mary¬
land railway operation. The offices of the Chaffee
Coal Company, on the sixteenth floor of the Real
Estate Ttitle building, have been retained. Mr.
Pfeiffer has represented this company in the local
market for some time.
Complete plans were made to present a plan for
the continuance of the local coal association, here¬
tofore known as the Philadelphia Breaker of the
Ko-Koals at a dinner held Tuesday evening at
the Manufacturers’ Club. The annual meeting
of the Ko-Koals will be held on December 16,
when the plan will be placed before the members
and the obsequies of the breaker will be said,
of the Ko-Koals. Social and educational work
The name of the new organization will be called
the Coal Club of Philadelphia and a new constitu¬
tion will be written to take the place of the ritual
of the Ka-Koals. Social and educational work
that has been the object of the Ko-Koals will be
carried out by the new organization. No restric¬
tions will be placed on any member who wants to
become affiliated with the National Coal Associa¬
tion, but it is intended that the local club have
no outside supervision. Various talks were made
and ideas outlined by those who attended the
meeting along this line. Every effort will be
made to have a full and complete attendance at
the annual meeting. Those who were present at
the meeting were Thomas Ayers, Frank Mathers,
Samuel Crowell, W. Barnard, W. H. Kneass,
Norristown ; W. L. Scott, Robert Magee, Robert
Chalfant, Charles Heiland, Charles Fernberg,
W. E. Grace, George Quigley, L. M. Haldt, Wal¬
ter C. Hancock, Charles Scull, Walter Eastlake,
Merchantsville, N. J. ; Samuel C. Nobelette, 1. C.
Freise, J. W. Watson, W. J. Steen, D. F. Hill and
Henry Pearson.
George P. Cronk, treasurer and general
manager of the Pennsy Coal Company, died at his
home at Franklin, Pa., on November 21, after
an illness of several weeks with typhoid fever.
He was 53 years old and leaves a wife, to whom
he was married only a short time ago. He
was a prominent member of the Order of Elks
and was formerly its grand exalted ruler, being
chosen to that office at Salt Lake City in 1902.
He presided over the 1903 convention, held at
Baltimore. He had a wide acquaintance in
both fraternal and business circles, among
whom he will be greatly missed.
Buffalo Trade.
Buffalo, N. Y., November 25. — (Special Cor¬
respondence.) — Lake shipments of anthracite
were on a rather small scale for the past
week, amounting to 101,850 tons, although this
is a larger total than for the preceding week.
The cargoes cleared as follows: Duluth-
Superior, 42,500 tons; Chicago, 37,350; Milwau¬
kee, 9,300; Green Bay, 7,700; Racine, 1,500.
Lake freights are very stiff to all but two or
three of the leading ports, as most all the
vessels now clearing are in a hurry to get down
cargoes of grain or ore and will not bother
to take up a cargo of coal. It is probable that
the season will last for several weeks yet, but
the total coal shipments will not come up to
those of last year, as they were 380,000 tons
behind to November 1st. The present month
shows no sign of any unusual activity to les¬
sen this discrepancy.
Dealers are calling for a fair amount of an¬
thracite, but the companies are not hard
pressed to meet all the calls upon them, and
do not expect to be until some old-fashioned
cold weather arrives. A gradual increase in
business is being shown right along and it is
accompanied by a scarcity of cars, which
threatens to get worse before it is better. A
large share of the present coal demand is in
chestnut, which is not at all plentiful.
The bituminous demand does not show any
particular gain as compared with two or
three weeks ago. A slightly easier tone in the
market is also reported, but this is a common
trend just at the close of the lake season. That
period is now being discontinued to some ex¬
tent and prices are not quite as strong as they
have been. The best demand for coal is re¬
ported to be from the seaboard, and shippers
who have the advantage of that market are
getting a good many orders. Those who
depend upon the Canadian market for much
of their business find trade disappointing. A
fair share of the Canadian plants are now busy
with war orders, and these are kept well sup¬
plied with coal, but ordinary industrial lines
are backward. The big war orders Canada is
receiving and the abundant grain crops run
into very heavy figures, so a turn for the bet¬
ter in coal demand is expected this winter.
The coke market holds up strong, with 72-
hour Connellsville foundry selling around .$4.85
or higher. Producers are confident that prices
are soon to be still higher and the ovens ap¬
pear to have all the orders they can handle
for the present.
Buffalo Trade Briefs.
The vessel movements through the Welland
Canal, which includes some cargoes from Lake
Ontario, have been unusually light of late,
especially as compared with the heavy traffic
earlier in the season.
In spite of the lateness of the season they
are still shipping coal from Oswego, and prep¬
arations are being made to load a number of
cargoes there this week. The season has been
about an average one this year.
Charles B. Kinne, who has long been con¬
nected with the local coal trade, and who was
formerly president of the Northeastern Coal
Company, with office here, has left the coal
trade to go into the manufacturing business.
Capt. William P. Henry, who for years was
manager of the Lehigh Transportation Company,
a lake line, died here on November 22, - aged
78 years. He was an ocean captain for many
years and later was one of the best known
men on the lakes.
J. W. Whiteley. of the firm of Whitney &
Kemmerer, was here last week from New
York. The office reports that coal is now
coming to this market from the Superior
mine, which has been shut down for some
time owing to a fire.
The will of Mrs. Josephine L. Goodyear,
widow of the late Frank H. Goodyear, head of
the Buffalo & Susquehanna Coal & Coke Co.,
and large lumber interests, leaves the family
home on Delaware avenue and a cottage on
Jekyll island to her son, Frank H. To sev¬
eral local charities $40,000 is left.
It is expected that the New York State
Steel Company plant here will soon be put
into operation, following the announcement
of its sale to the Cambria Steel Company. A
number of changes will have to be made in
equipment before work is begun. The plant
has been idle most of the time since it was
built, eight or ten years ago.
444
THE BLACK DIAMOND
[November 27
Baltimore Trade.
Baltimore, November 25. — {Special Corre¬
spondence.)— Tighter and tighter grows the fuel
trade in all its aspects. Lack of care is playing
more and more of a part in every way. Under
the restrictions of poor movement of fuel the
stocks of anthracite here are being touched upon
long ahead of the usual time. Coal men are let¬
ting go of this coal gingerly, but the demand of
fuel that developed with the colder weather is
already considerably above the amount of de¬
livery here. Coal that is ordinarily but six to
seven days enroute from mines to tide is often
on cars now from two weeks to in some extreme
cases a month. As most of the coal men here
are now convinced that a strike is coming in the
spring and that the whole fuel situation will be
trying this winter, it would not be at all surpris¬
ing to see a jump in hard coal prices before
winter is far advanced.
During the past week the car supply in the
regions of interest here was worse than for
several weeks previous. It varied anywhere from
forty to seventy per cent, but a fifty-five per
cent average was about struck. Hard weather in
tlie north and west is tying up returns from for¬
eign lines to the railroads centering here. Then
there are many cars tied up at eastern terminals
at tide because of lack of vessel bottoms to move
fuel and other commodities as needed.
Consumers as a whole are now awakening to
what may face them later in the year and are
urging delivery of every pound of coal possible
on existing contracts. The inclination to store
when coal can be secured above immediate needs
is aiding materially in making the situation more
rigorous. Good coals are more and more being
classed as out of the market for the time being.
Prices to the trade may be quoted as
follows :
F. 0. B.
F. 0. B.
Fairmont Ordinary —
Mines.
Mines.
Three-quarter .
$ 2.53
Run of mine .
. 1.00
2.43
2.38@2.43
Somerset —
Best .
. 1.40
2.58
Good .
. 1.25
2.43
W. M. R. R.—
Freeport .
. 1.20@1.25
2.38@2.43
B. & O. R. R.—
Freeport .
. 1.25
2.43
P. R. R.—
Best South Fork .
. 1.40@1.45
2.58@2.63
Miller vein .
. 1.30
2.48
Some Trade Events
A petition in bankruptcy has been fded in the
United States Court here by R. Lee Jones, a coal
dealer. No. 601 West Pratt street.
Coal charters for foreign account are few,
and at very high rates. November will certainly
prove a poor month on total export movement.
The Baltimore and Ohio Railroad is receiving
bids for the erection of its new steel and concrete
coal pier here at Curtis Bay. The structure will
be 700 by 115 feet.
The Maryland Steel Company is completing a
40,000 ton steel rail order for Russia. It is un¬
derstood that the same country is again in the
market for 125,000 tons of rails.
New England Trade
Boston, Mass., November 25. — (Special Cor¬
respondence.) — A further improvement in senti¬
ment is noted throughout the local wholesale
anthracite and bituminous trade. Some of the an¬
thracite dealers are actually optimistic regarding
the outlook, and some are so certain in their own
minds that their predictions will materialize they
are willing and anxious to “bet money on it.”
As an illustration of the sentiment expressed
by many of the trade, the head of one of the larg¬
est local wholesale firms says in regard to the fu¬
ture : “In past years, a big and urgent buying
movement of hard coal has very often been pre¬
ceded by an influx of orders from retailers and
large consumers sprinkled throughout New Eng¬
land, whose credit is far from satisfactory. Just
why the demand from poor credits is keen before
the good credit buying sets in is of no moment.
The fact is this demand is here and I look for a
large general buying movement. Then, too, the
car supply is small, especially for small cars.
Wat,er freight rates are far above normal. None
of the producers have an important surplus of
any size of coal at storage points, and the labor
outlook is anything but encouraging. Can you
beat that for a combination of bullish arguments?
I’ll predict that prepared sizes, at least, will be
bringing a premium of 50 cents per ton within the
next three weeks or month.” This gentleman was
one of those who was willing to “bet money
on it.”
Several other concerns are equally as certain
that coal will be higher before the turn of the
year. Still others believe higher prices are com¬
ing, but to be conservative refuse to state when
they expect the advance. Undoubtedly this be¬
lief is based to some extent on the recent action
of independent shippers operating in New Eng¬
land. These shippers are asking $3.85 to $3.95 for
coal at the times and will not guarantee deliver¬
ies. A month ago they offered coal freely at $3.70
at the times.
Current business is somewhat spotty. Dealers
are to be found who have done comparatively lit¬
tle during the past week. They admit, however,
that this fact is due largely to their inability to
make deliveries. The weather outside has been
unfavorable for water transportation, and the
congestion of cars at New York junction points
seriously interferes with the movement of coal
into New England. Some cargo lots booked more
than a week ago remained unfilled. Those who
have done a good business say the demand has
run largely to nut, and stove next. Where new
business in these two sizes has been taken on
shippers have insisted on buyers taking a certain
amount of egg. All-rail pea is in light supply;
enough is coming by water to supply the demand,
however. Buckwheats appear scarce as ever —
just enough coming forward to supply orders.
.\longside Boston Harbor prices are: Stove and
egg, $5.85; nut, $6.10; broken, $5.10; pea, $4.05
per ton. No. 1 buckwheats are quoted here on a
basis of $2.80 per ton f. o. b. New York; No. 2 at
$2.30; No. 3 at $1.60, and bird’s-eye at $2.
Old contract New River, Pocahontas, etc., are
moving well, thanks to a still greater expansion
of industrial business throughout New England.
Supplies of coals at southern shipping points con¬
tinue far in excess of requirements, yet the mar¬
ket appears to be on a real firm basis of $2.85 per
ton. The spot market for New River and Poca¬
hontas at Mystic Wharf consists chiefly of buying
between shippers themselves. If a shipper hap¬
pens to get short of coal he is obliged to come
into the spot market and usually pays $4 per
ton on cars or thereabouts. Georges Creek at
Mystic Wharf is about $4.10 to $4.15 per ton on
cars, but the supply offered is small. The all-rail
Pennsylvania bituminous market is very strong
and active on a basis of $1.40 to $1.60 per ton
on cars at the times.
A sharp uprising in next season’s prices is con¬
fidently expected. In fact many of the trade
who a month or so ago appeared greatly alarmed
over the situation are predicting that soft coal
prices will be actually higher before the 1916-17
season opens. Some go so far as to predict a
minimum price of $2 per ton for bituminous at
the mines within the next two months.
The marine freight rate market is very strong.
For anthracite space from New York to Boston
the hig companies are asking fifty cents per ton,
but outsiders are getting all the way from seven¬
ty-five to ninety cents per ton. Big company’s
rates from New York to Pawtucket are usually
forty-five cents and forty to Providence. Out¬
siders are asking and getting fifty cents to Provi¬
dence and sixty to Pawtucket. From Hampton
Roads to Boston space is scarce at $1 to $1.30
per ton, and to Sound points about ten cents a
ton less.
Birmingham Trade.
Birmingham, Ala., November 25. — (Special
Correspondence.) — Coal trade conditions have
been better this week. Even the smaller mining
companies are now' feeling the effects of im¬
proved trade. The railroad demand for steam
coal is much better. Heavy traffic has caused a
.shortage of cars for coal delivery.
The domestic trade has shown up well. One
retailer says:
“There is quite a noticeable difference in the
coal trade this year as compared with last year.
Not only is the trade better, but people are buy¬
ing differently. Last year retailers found that
by far the greatest number of people ordered coal
in half-ton lots. This is not being done this
year. Coal is being ordered in one, two and more
ton-lots, and even in carload lots.”
There is a lively demand for coke, and prices
are most satisfactory. The big by-product coke
ovens in this district are w'orking full time, and
there is continued strong demand for every one
of the by-products.
The Paye Bend Warrior Coal Company has
filed articles of incorporation with capital stock
of $10,000. This company has leased a tract of
coal land belonging to Alabama State LTniversity.
It is opened on the well known Pratt coal, and
shipments will be made down the river. The
president of the company is W. C. Head; vice-
president and general manager, C. C. Huckabee;
secretary and treasurer, D. M. Lewis.
The trend of coke trade is better. Prices on
foundry coke is from $3.25 to $3.50. By-product
prices range from $2.60 upward.
PRICES FOR OCTOBER AND THE BALANCE OF
THE YEAR.
F. O. B.
F. 0. B.
bibb County Domestic —
Mines.
Birmingham.
Red ash Cahaba lump .
. $3.00
*3.30
Red ash Cahaba lump .
3.10
Red ash steam size .
Frt. rate 30c
Jefferson County —
Fancy steam Pratt .
2.00
Run of mine Pratt .
1.45@1.50
Mary Lee lump .
. 1.40@1.60
1.80@1.90
Black Creek —
Fancy steam lump .
2.05
Washed nut .
2.05
Washed steam .
. 1.36@1.60
Frt. rate 30c
Mine run .
Frt. rate 30c
Jefferson Steam Coal —
Mine run .
Frt. rate 30c
Walker County Domestic
Coal —
Carbon Hill lump .
2.15
Carbon Hill crr .
. 1.65
2.05
Horse Creek mine run .
Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . . 1.90 2.35
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic Coal — ■
Cahaba fancy lump . 3.00 3.30
Cahaba No. 2 lump . 2.75 3.05
Montevallo domestic prices range from $3.00 to $3.25.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with difference rates to various points.
Anthracite Rates Suspended.
The Interstate Commerce Commission has
further extended the effective date of its order
in the anthracite coal case from December 1,
1915, to January 1, 1916.
Postponement of the effective date for the
lower anthracite rate ordered by the Inter¬
state Commerce Commission to January 1 fol¬
lows a previous postponement by the com¬
mission from the original date of October 1
to December 1.
The decision by the commission reducing
anthracite rates on an average above 10 per
cent was handed down October 12. In this
decision basic rates to tidewater and to certain
western points were fixed, but as regards in¬
termediate points, merely certain ratios were
laid out and it was left to the carriers to pre¬
pare the actual schedules. This, it was shown,
it was impossible to do, in the short six weeks
allowed and a sixty-day extension was granted.
Since that time the independent coal oper¬
ators have asked for a reopening of the case
as regards the smaller sizes, charging that an
advance in rates on these classes of coal, as
suggested by the commission, would entirely
prevent their movement in competition with
the soft coal.
It is likely that various adjustments will
have to be made in the rates as originally
ordered by the commission, and this work is
now being done by conferences between rep¬
resentatives of the carriers and of the com¬
mission.
John F. Wedow, member of the firm of
Mitchell & Co., Cleveland, Ohio, vessel agents,
and widely known in lake shipping circles,
died at St. Luke’s hospital Monday fore¬
noon from injuries received by being run
down by an automobile an hour before. He
was born in Germany and came to this country
when thirteen years of age. After serving as a
clerk in a Detroit store for a time, he entered
business at Marine City, where he also served
four years as postmaster under President Cleve¬
land’s administration. Twenty-six years ago he
came to Cleveland and, with Capt. John Mitchell
and John C. Fitzgerald, formed the vessel firm of
Mitchell & Company. A few years later Capt.
Alfred Mitchell was taken into the firm. Then
Capt. John Mitchell and Mr. Fitzgerald withdrew
and since then Capt. Alfred Mitchell and Mr.
Wedow have been associated in the business. Mr.
Wedow at the time of his death was secretary of
the Cleveland Steamship Company and owner of
the barge Troy. The funeral was to take place
Wednesday afternoon from the home of his
daughter, Mrs. F. W. Sinram.
Fire early Saturday morning last week partially
destroyed the garage of the P. Koenig Coal Com¬
pany, in Detroit, inflicting considerable damage
to seven motor trucks. The loss is estimated at
$8,000.
1
ft
rHE Black Diamond
Vol. 55. No. 23
DECEMBER 4, 1915 SS OO Per Year
The Ohio Rate Case and Its Effect on Coal Markets.
For several months coal men have been hear-
in.g a great deal about the Hocking Valley rate
case in Ohio. From indications, they will hear
more about it before they hear less. It is becom¬
ing as big as the question of unionism.
Two lines of action have been followed. The
one of public record is before the Public Utilities
Commission of Ohio. There the strictly technical
phases of the rate question are being discussed.
The other has had to do with the effect of any
possible rate change upon competitive conditions
as between Ohio, western Pennsylvania and West
Virginia.
Because of the heated discussion of the tech¬
nical phase of this question at Columbus, Ohio,
public attention has been directed mostly there.
The result has been that the larger aspects of
the case has been lost to coal trade view to a
certain extent. This does not mean that West
Vinginia has not spoken, but few listened care¬
fully, considering theirs a partisan view. The
purpose of this article is to disregard the ques¬
tions involved at Columbus and to discuss the
broader questions, namely :
How would any change in rates affect the coal
mining business? How would they affect the
Ohio operators ? How would they affect the min¬
ing districts with which Ohio is in competition?
In order to answer those questions, it is best
to treat the whole subject in a historical way; to
attempt to tell a connected story of the dispute
from the beginning.
Green Laws Responsible.
No one, familiar with the Ohio situation, has
lost sight of the fact that this controversy sprang
directly from the passage of the Green anti-screen
law in Ohio. The Ohio miners have been trying
to control the mining situation. Until two years
ago their favorite — and in fact their only — meth¬
od was to demand of the operators a concession
that the coal should be paid for on the mine run
basis. When that was impossible to get by agree¬
ment, they went before the state legislature and
asked the passage of a law compelling the oper¬
ators to pay them on the mine run basis. It is a
matter of history that they were successful.
The immediate result was a fight between the
Ohio operators and the Ohio miners, first, as to
whether this law should be applied to the new
contract then about to be made, and, second, as
to what the mine run rate should be. For a brief
period, the controversy was between all oper¬
ators of Ohio and the international organization
of the union. The miners stood together. The
operators united only for a short time, when the
Hocking district broke away from its colleagues.
The reason for this break has not heretofore
been made public. The forces then in control
of the Sunday Creek Company had been con¬
scious that they were losing ground in the west¬
ern market, due to the competition of western
coal. They attributed their loss of territory —
perhaps it is better to say their failure to main¬
tain their percentage of growth — to the fact that
western coal was more elaborately sized than was
Hockin.g coal. They believed that if the Hocking
product were sized as elaborately as is the Illinois
coal they would have a better chance. As a means
of enforcing the proposed elaborate preparation
over the entire Hocking district, they acceded
to the demands of the miners; they believed that
with the mine run basis established, elaborate
sizing would come naturally.
This matter is .gone into because it is the crux
of the whole situation in Ohio and because the
Hocking operators were shooting at one mark but
succeeded in hitting another.
A Big Plan Miscarries.
Before the Hocking operators could possibly
install the sizing equipment, they were confronted
by the fact that the new scale had so increased
the cost of production that they could no longer
compete with the newer mines in West Virginia.
Rather, therefore, than gaining business at the
e.xpense of Illinois and Indiana, as expected, they
were losing business to West Virginia,
Starting as an Effort to Despoil the
Railroads to Pay a Debt to the Union,
It Has Developed Into a Railroad Effort
to Tax Coal in the Name of a Change of
Differentials.
The miners thereupon found that they had
made a mistake. They had won their concession
from the Ohio operators, but the latter were un¬
able to pay the bill and stay in the market. The
miners, to correct this mistake, had choice of
two alternatives :
They could reduce the mining rate. This they
refused to do.
They could go to the state and ask it to reduce
the transportation charges on Ohio coal and
thus reduce the delivered price to a point where
the miners could get their increase without driv¬
ing the operators out of business.
The union officials chose to go before the Pub¬
lic Utilities Commission of Ohio and to attack
the rate fabric which had existed for thirty years.
They asked a reduction in the intra-state rate on
Ohio coal, knowing, of course, that this would
influence the interstate rate.
In the first action, the United Mine Workers
attacked the Hocking Valley Railroad. Soon
thereafter, the Sunday Creek Company, the con¬
trol of which had changed in the meantime, joined
the petitioners and really substituted itself for
them. After that the eastern Ohio operators
joined the Hocking Valley operators. Thus by
quick expansion it became a state-wide fight
wa.ged by the miners and operators against every
carrier in Ohio.
The Defendants Solidify.
The miners’ union and the operators of Ohio
seemed to be attacking only the railroads of Ohio,
but it was no secret that the real defendants were
the major coal producing companies of West
Virginia. The latter saw the point and joined
forces to resist the attack. Lined up behind the
West Virginia operators were, soon, the West
Virginia railroads, the united banking interests
of West Virginia, the state .government of West
Virginia, and indeed the whole body of West Vir¬
ginia people. The situation was — and is — thus
excessively grave. Nothing just like it has been
seen in years.
When this controversy had grown to such elab¬
orate proportions, many intricate questions had
been raised. However, the whole contention can
be simplified. Tlie Ohio coal in question is, on the
average, rather high in volatile matter; it runs
close to thirty-five per cent. Competing West
Virginia coals, therefore, are those only from
West Vir.ginia which are equally high in volatile
matter. This means everything produced west
of the Pocahontas field; it included Cabin Creek,
Island Creek and the whole range of splint and
gas coals. Low volatile coals are not included.
For the purpose of illustration, the freight rates
applying on those coals to Chicago is to be used
rather than those applying between points in
Ohio. The Hockin.g rate to Chicago is $1.65. The
splint and gas rate from West Virginia to Chi¬
cago is $1.90. The difference — the differential —
is twenty-five cents in favor of Ohio and against
West Virginia.
The contention of Ohio has been that its rate
should be reduced twenty-five cents, making the
differential fifty cents instead of twenty-five.
That is, Ohio wanted a rate to Chica.go of $1.40,
while the rate from West Virginia should remain
$1.90. This is merely an illustration, but it shows
precisely what the contention is ; in the case being
heard at Columbus these points and these figures
are not used. For example, in Ohio, the rate is
computed on the movement from Nelsonville to
Toledo, rather than from the mines to Chicago.
Even so, the same differential applies, namely,
twenty-five cents a ton. Also the same proposed
increased difference applies, namely, fifty cents a
ton.
The first reply of the West Virginia operators
was that this rate has remained unchanged for
fifty years; it should not be changed now. They
especially objected to a change in their rate which
had for its purpose to allow the Ohio operators
to make good the concessions made to the Ohio
miners. The West Virginia operators failed to
see in the real cause of this rate action any rea¬
son why the whole rate fabric of the eastern min¬
ing district should be changed.
The Railroad Switch.
However, the West Virginia railroads, in a
sense, have overruled the West Virginia oper¬
ators. They have been persuaded to consent to a
certain increase in differential. They suggest,
however, that it should be forty cents rather
than twenty-five. They also suggest that instead
of a reduction in the intrastate rates on Ohio
coal, there should be an increase in the interstate
rates on West Virginia coal. That is, they pro¬
pose that the Ohio rate be left at $1.65 to Chi¬
cago, while the splint and gas rate be increased
from $1.90 to $3.05. This would increase the dif¬
ferential from twenty-five to forty cents a ton.
It is interesting to know that this proposal was
made by Geonge H. Stevens, president of the
Chesapeake & Ohio Railroad. It may be sig¬
nificant that he is in control also of one of the
Ohio fines which would be affected directly by
the decrease in the Ohio rate.
Next to that, the most significant development
is that Mr. Stevens succeeded, at a meeting in
New York last week, in persuading the lines serv¬
ing western Pennsylvania and particularly the
Pennsylvania Company, to join him in a proposal
to increase the interstate coal rate not only from
West Virginia, but from western Pennsylvania.
Accordingly, as per his pro.gram, the West Vir¬
ginia and western Pennsylvania lines are both
preparing to file new tariffs naming a rate of
$3.05 to Chicago. The Pennsylvania’s attitude
can be explained on the score that thereby it gets,
under cover of a readjustment of differentials,
an increase in rates of fifteen cents a ton on all
of its coal.
In reply to this proposed rate change, the Ohio
operators object to the basis on which the rate
is made, primarily because it takes the matter to
the Interstate Commerce Commission rather than
to the Public Utilities Commission of Ohio. The
Ohio operators insist that the jurisdiction of the
proceeding shall not be changed. They want the
Ohio commission to pass upon the matter both
first and ultimately. The status of the case at
the minute is that West Virginia and western
Pennsylvania are adhering to their proposal that
if differentials are disturbed the interstate rates
shall be changed; the Ohio operators insist that
the intrastate rate alone shall be changed and that
that shall be lowered. The West Virginia and
western Pennsylvania operators concede a differ¬
ential of forty cents ; the Ohio operators and
miners stand firm on their demand for a differ¬
ential of fifty cents.
West Virginia’s Attitude.
The West Virginia operators are inclined to
take a statistical view of the whole matter. They
start with the fundamental proposition that Ohio,
immediately before the anti-screen law was
l)assed, produced under the old rate the largest
tonnage in its history. They contend that owing
to the age of its mines and the fact that some
of its most important deposits are worked out,
Ohio is approaching the limit of its productive
capacity.
They next show that whereas Ohio, today, is
producing one ton of coal, West Vir.ginia is pro¬
ducing easily two. They say that by no possible
change of freight rates and by no conceivable
handicap placed upon West Virginia can Ohio
take care of its own business and then substitute
itself for the high volatile district of West Vir¬
ginia. That is, even though West Virginia were
446
THE BLACK DIAMOND
[December 4
so heavily handicapped that its coal business were
killed, the increase in production could not pos¬
sibly be taken care of by Ohio mines. They de¬
clare that the beneficiaries would not be the Ohio
operators, who are the petitioners in this case,
but some other mines outside of Ohio. They sug¬
gest that Indiana and Illinois mines would do the
business. Because of possible gainers by winning
this contention, would not be the Ohio petitioners,
but a third party not now appearing in the pro¬
ceedings, West Virginia is resisting to her full
strength the movement which she says is clearly
intended to destroy her business.
West Virginia also takes a stand on an eco¬
nomic question. Those operators declare that
West Virginia has gained a certain expansion of
tonnage not merely because she has, what Ohio
considers, a favorable freight rate, but because
she has very excellent coal and exceptional min¬
ing conditions.
They declare that the present intention to in¬
crease the West Virginia rates is not especially
a movement to equalize competitive conditions
between Ohio and West Virginia, but a move¬
ment to give the benefit of that coal quality and
of those conditions not to the operators who own
the mines, but to the railroads. They say it is a
clear effort to despoil the operators of their most
valuable asset and turn it over to the railroads,
who take none of the risk of mining and who are
not allowed to invest a dollar in West Virginia
mines.
Going deeper into the question, the West Vir¬
ginia operators say that the railroads are mak-
in.g a thick-headed mistake by taking any part at
all in this fight between the Ohio and West Vir¬
ginia operators. They say that the railroads can¬
not possibly get their own fuel coal and all of
the commercial coal needed from the Ohio mines.
Particularly, they cannot get their fuel coal from
the Ohio mines. Therefore, if the railroads in¬
crease the West Virginia rate by fifteen cents,
they will at the same time increase the cost of
their fuel co:il.
In addition, the West Virginia operators say
that if Ohio operators get the langer differential
they will not put it in their own pockets. Rather
all of this fight against West Virginia is being-
made by the operators really for the benefit of
the Ohio miners. This is an adroit way of ex¬
pressing their belief that any concession in freight
rates made to Ohio miners will be turned over
to Ohio miners in the form of a lar.ger wage per
ton.
They believe that since the miners started the
rate controversy, the union will demand the re¬
ward.
Attacking this question on the broad basis of
humanitarianism, the operators of West Virginia
say that the proposal is to rob two West Virginia
miners of possible revenue in order to increase
the wages of one miner in Ohio.
Another Way Around.
Some of the West Virginia operators make a
clever suggestion when they say that the rates
may be changed if the operators and railroads
and the miners insist upon it, but they cannot
drive West Virginia wholly out of the market.
In support of this, they call attention to the
fact that while the mines now depend upon the
railroads for the movement of their coal, most
miners can mov.e coal by river. That is, coal can
be brought down from the Guyandotte and the
Kanawha rivers to the Ohio River and can be
floated to Ohio ports, where it can be loaded into
cars and moved at the Ohio rate to all destina¬
tions reached by Ohio coal. They say that this
can be done for twenty-five cents a ton. Of
course, it wmuld cost some money to install the
docks, but the operators would put up that
money rather than to be driven out of business.
Therefore the West Virginia operators say that
if forced to such an action, the concrete result
will be the loss of a great volume of business to
originating West Virginia lines, but the move¬
ment of West Virginia coal to tlie ultimate mar¬
kets at the same old differential of twenty-five
cents a ton. This means to say that they believe
the coal can be barged from the mines to Ohio
ports — including dockage charges — at twenty-five
cents a ton.
The T. B. Davis mine property, near Fleming-
ton, Taylor county, West Virginia, has been sold
for the executors of the T. B. Davis estate by
Howard Sutherland of Elkins, W. Va., to Clar¬
ence D. Robinson of Fairmont, W. Va., who,
with associates, already operates successfully two
mines in that neighborhood. Possession was
.given December 1st. The sale includes all the
real and personal property connected with the
mine.
The Hocking Valley
CoLUMaus, Ohio., December :i. — {Special Corre¬
spondence.) — F'riday appeared to be Hocking
Valley officials day in the big rate controversy,
practically the entire time being taken up with
prominent general office men. E. P. Torry, super¬
intendent of car service, was the first witness of
the morning. Mis figures for the cars handled in
the Nelsonville district for the year ending June
30, 1914, was 70,960 loads and 63,013 empties.
Ton mile statistics and various percentages deal¬
ing with the use of cars for foreign and local
coal were gone into. William Michel, chief engi¬
neer, testified to certain forms of expense incident
to line upkeep and structures at the same as¬
sembling center, the total amounting to $43,499.
The mileage of the Nelsonville yards and
branches, inclusive of the Straitsville branch, was
placed at 81.38 miles, which represented about 11
per cent of the whole trackage of the Hocking
Valley railway system. The road has 351 miles
of main line, the balance being double tracks and
sidings.
A combination item of $123,042 was submitted
in detail by M. A. Kinney, superintendent of mo¬
tive power, as having been the Nelsonville expense
of his department during the year under con¬
sideration. It was shown that the Hocking Val¬
ley owns 20,000 coal cars, 2,500 all steel, 4,000 steel
underframes, and 13,500 wood. Cross-examina¬
tion brought out the statement that some of the
cars had stood idle on sidings for from a year
to two years. Mr. Kinney contended that the
depreciation of a coal car, whether wood or steel,
was practically as great when standing idle as
when in service. The weather, he claimed, was
the most injurious factor. Opposing counsel
charged that the road had been buying new cars,
while good rolling stock had been left unfit for
service through lack of repair attention, stating
that it made a better showing to the stockholders,
as new cars were charged to capital account, and
repairs charged to operating expenses. The wit¬
ness thought the new cars though delivered during
the recent period of idleness, had been bought
previous to that time. His estimate placed the ex¬
pense of repairs to foreign coal cars at five per
cent of the total cars repaired, as the Hocking
Valley made no repairs to the former, only such
incidental attentions as were necessary to keep
them serviceable while they were rolling over its
lines.
W. W. Houston, superintendent of the Flocking
Valley, was examined by the company’s counsel
on statistics for various yards. The year’s re¬
ceipts of cars at the Walbridge, or Toledo termi¬
nal was placed at 333,060. The transportation
wage cost for this yards he testified was $182,-
252.88, or 54.72 cents per car. The same cost
for cars handled in the Fostoria yards was 11.23
cents per car, Marion, 21.97 ; Columbus, 40.16 ;
Nelsonville, 29.44. The yard handling of local
coal was three or four times greater than in the
case of foreign coal.
M. S. Connors, general manager, who was
placed on the stand for the purpose of reading
into the record certain small items of expenses
with which he was directly concerned, in the
Nelsonville district, made a rather aggressive wit¬
ness, including in more or less sarcasm at the
expense of opposing counsel. He made the direct
charge that Rate Expert Hillman had made mis¬
leading use of certain data in the form of per¬
sonal memoranda which he had loaned him. Mr.
Hillman was not present at the time Mr. Connors
was on the staml. The tenor of the day’s evi¬
dence was to emphasize in a special way the ex¬
pensiveness of Nelsonville yard operation, and in
a general way to lay the basis for the company’s
defense that rate expert theories, and particularly
the system of cost analysis used by the investiga¬
tors of the company’s records, were not practical
in dealing with the complicated operation of as¬
sembling yards and terminals.
Just before adjournment for the week Chief
Counsel Wilson called to the stand Mr. Thomas,
an employe of the commission, whom that body
had made chairman of the investigating commit¬
tee. He gained from Mr. Thomas the statements
that his experience had been along banking lines,
that he was now an investigator of securities and
that he was without any practical knowledge of
railroad or traffic matters. The commission an¬
nounced that the hearing would be resumed Tues¬
day morning.
Tuesday, the first hearing day of the second
week since the case was resumed, saw a change of
tack by the defense. Instead of dealing further
with the figures pertaining directly to its own
road, the nature of the evidence was decidedly off-
Coal Rate Hearing.
line. Counsel Wilson first presented thirty sta¬
tistical exhibits, which had been compiled under
the direction of C. R. Wright of Cleveland, as¬
sistant coal and coke agent of the Baltimore &
Ohio railroad. Mr. Wright was placed on the
stand and confirmed each exhibit separately, also
giving the length of hauls, rates and locations
with which the exhibits dealt, and stating his
sources of information. These hauls had to do
with many railroads, extending over a good por¬
tion of the country. They included Pennsylvania
in the east, most of the southern states, Texas
and Oklahoma in the southwest, Iowa in the
west and some of the states of the northwest,
.^.n interesting table of hauls and rates pertained
to points into Chicago from near-by fields, rang¬
ing from eleven to fifteen miles on a forty-five
cents per ton rate up to 190 miles on a $1.08
rate.
On cross-examination it developed that a num¬
ber of the defendant railroads on the original
general hearing suit had appointed a joint com¬
mittee soon after the case was filed last summer,
to compile these comparative exhibits. The roads
directly represented on the committee were the
Pennsylvania, New York Central, Baltimore &
Ohio and Hocking Valley. Mr. King acknowl¬
edged that his committee had made no direct in¬
vestigation, but had taken its data from tariffs
and other printed matter. Large assistance had
been rendered by traffic men with whom the com¬
mittee had communicated. It has been directed
by President Wasson and Counsel Wilson as to
what points of origin and destination should be
used in the compilations.
J. T. Averill, general freight and passenger
agent of the Chicago, Ft. Wayne & Southeastern
railway, upon being sworn, made the statement
that he was familiar with coal traffic conditions in
Illinois and Indiana, by reason of his long service
in those fields, with his present connection and
former association with the Illinois Central. As
announced by counsel, it was expected to refute
through Mr. Averill exhibits dealing with the
same fields by W. M. Hopkins, one of the rate
e.xperts for the plaintiff's. With a specially pre¬
pared map before him, submitted as an exhibit,
the witness figured out long and short hauls into
Chicago from various coal districts in the two
states.
Much time was also spent in explaining the so-
called manufacturers’ rate prevailing in a certain
section of Indiana, on which the plaintiffs had
laid considerable stress. He said that ten yprs
ago when the natural gas supply failed in Indiana
the manufactories which had been attracted to
the gas belt by prospect of abundant cheap fuel,
were left in a distressed condition. The railroads
decided to help them out, partly for the object
of conserving the tonna.ge in raw materials and
finished products which they had realized from
these industries. A special coal rate of fifty cents
from the Linton coal field to the gas belt was
l)ut in force, applying only to manufacturers. This
had been gradually raised to 65 cents, as opposed
to the present regular commercial rate of 75
cents. The railroads now felt that they had done
their full duty toward the industries in question
and were anxious to do away with this special
rate altogether.
At suggestion of counsel, the witness went into
a history of the Illinois and Indiana coal fields,
beginning with the time when the several groups
of mines in northern Illinois had supplied one-
third the soft coal used in Chicago. The coal in¬
dustry was then traced through its extension to
other fields, the rate feature being explained^ as
the witness proceeded. Throughout Mr. Averill’s
testimony, continued capital was made by counsel
for the defense of the five cents per ton increase
in coal rates which are to go into effect in many
liarts of Illinois and Indiana on December 15th
next.
Forenoon of Wednesday was taken up chiefly
with the testimony of J. C. Vennin.g, of Pitts¬
burgh, general ore and coal agent of the Pennsyl¬
vania lines west of Pittsburgh. He entered into
minute explanation of a map and a blue print
which he had prepared showing originating points
of coal in western Pennsylvania, Ohio, West "Vir-
.ginia and Kentucky, also groups of destination
points in Ohio, Michigan, and other states where
coal from all the other producing states narned
were in competition with Ohio. In connection
with this the witness gave a very entertaining his¬
tory of the whole coal rate proposition and the
development of the market groups in which the
(Concluded on page 453)
No. 23]
THE BLACK DIAMOND
447
Failures in American Business, Why
Leaving out of consideration the bankiag, rail¬
road and public utilities corporations, and refer¬
ring only to those that have to do with trade
and industry, we find that there are about 250,000
Inisiness corporations in the country. The aston¬
ishing thing is that of those, over I00,000 have no
net income zvhatever. In addition, 90,000 make
less- than $5,000 a year, while only the 60,000 re¬
maining, the more successful ones, make $5,000 a
year and over.
Turning now from net income to the total
volume of business done by those 60,000 corpora¬
tions we find that 20,000 have sales of less than
$100,000; 20,000 more sell from $100,000 to $250,-
000 ; 10,000 additional from $250,000 to $500,000 ;
5,000 corporations ship annually half a million to
a million dollars’ worth of goods ; 4,500 have total
sales from a million to five million dollars; while
only 462 industrial and mercantile corporations in
the United States do an annual business of $5,000,-
000 or more.
These striking figures exhibit a condition which
has existed for many years. They show con¬
clusively that big business, zvhile important, con¬
stitutes but a small fraction of the trade and in¬
dustry of the United States. They make clear
that there is an unduly large proportion of unsuc¬
cessful business concerns. Do they not need help?
Why have we not paid more attention to small
and middle-sized business? Is it not worthy of
our consideration? What measures are we to
take to improve these conditions?
Speaking generally, the real, constructive help
must come from within. You know, and I know,
that lumping all business together the real need is
for better business methods. When we were all
working on a lar.ge percentage of profit, and when
it was a case of filling orders at our own price,
we didn’t need any help. But, gentlemen, that
day is past. We now have to get down to the
hard facts of business, to learn precisely what
they are, where the weaknesses and losses exist,
and practice the same thoroughness which char¬
acterizes trade and industry in Europe. We need
to study standard systems of bookkeeping and
cost accounting.
The fact must be admitted that in order to put
a selling price on a product a manufacturer must
first know exactly what it costs to manufacture
and sell it.
A manufacturer who does not know with a
close degree of accuracy what it costs him to pro¬
duce the different articles he manufactures and
what it costs him to sell them, is not in a position
intelligently to meet competition and invites busi¬
ness disaster.
Many of the large manufacturers have thor¬
ough cost accounting systems, which they recog¬
nize as necessary in order to .give them the infor¬
mation essential to successful management. On
the other hand, the number of smaller manufac¬
turers who have no adequate cost accounting sys¬
tem and who price their goods arbitrarily is amaz¬
ing.
Proper accounting for the smaller manufac¬
turer is most essential. It is necessary for his
success that he know on what particular article he
is making a fair profit and on what he is making
only a narrow mar.gin of profit or losing money.
If he has this information he can concentrate on
the manufacture and sale of the product on which
the profits are satisfactory.
Whole industries, in many instances, are suffer¬
ing from a general lack of intelligent knowledge
of cost. How can the Federal Trade Commis¬
sion help to cure these conditions?
The commission has no power and no desire to
use compulsory methods. But it does hope to
reach the desired end by endorsing standard sys¬
tems of bookkeeping and cost accounting, and to
assist in devising standard systems, either at the
request of individual merchants and manufac¬
turers or through the association that represents
the industry. The commission expects to have
for this work an adequate force of experienced
accountants and cost experts and the service, in
an advisory capacity, of public accountants of na¬
tional reputation.
What may be expected for such activities of
the Federal Trade Commission?
First, the individual enterprise will be helped.
They will be enabled to know exactly where they
stand. Their prices will be made on a solid basis
of fact.
Second, the employees of these firms will be
benefited. They will be trained to more thorough
*An address by the vice-chairman of the Federal Trade
Commission before the annual meeting of the Associa¬
tion of National Advertisers in New York City, Decem¬
ber 1, 1915.
By Edward N. Hurley.
An Astounding Statement as to the Lack
of Profit in Business — Only Careful Cost
Accounting and Greater Efficiency Will
Help.
and more accurate methods of work. This im¬
proved knowledge will increase their effectiveness
and their individual value to their employers.
Third, the investor will be benefited. He will
be able to invest his money with greater assur¬
ance that it will be used in the most advantageous
manner.
Fourth, the public will benefit; it will not have
to pay for inefficient methods.
To take a specific example, suppose that there
are five plants making a certain line. Ima.gine
that one of these plants is run efficiently and that
the other four are managed in a slipshod manner.
Where is the sort of trouble going to appear
that costs the public and the trade heavily? In
the four plants run in slovenly manner, of course.
It is in those four plants that the expensive
strikes will occur, the dangerous dissatisfaction
among workers wilt appear, and the demoralizing
practice of selling below cost of manufacture will
take root, and other unfair methods of competi¬
tion as a means of making sales.
If we can raise the level of effectiveness pre¬
vailing in these four plants to the level prevail¬
ing at the ably managed plant, or even higher,
benefits will accrue to every interest concerned.
All five of the plants will be on a more satis¬
factory competitive basis. The employees in at
least four of the plants will learn to do their
work to better purpose. Consumers will be
forced to pay for fewer inefficient methods. The
jobbers and retailers will get their goods under
more advantageous conditions. And the bankers
will have five excellent accounts on their books
instead of one excellent and four doubtful ones..
-Vn up-to-date system of accounting will enable
the banker to extend to* the smaller manufacturer
the credit to which he is entitled, and which he
needs in order to expand his business. The small
manufacturer may have just as much brains, abil¬
ity, knowledge of his wares and of his customers
as the larger operator ; he may even put out a
superior product. But he can not show the
banker a balance sheet based on proper account¬
ing methods, and the banker does not feel ready
to extend credit without the knowledge that such
a balance sheet would supply; thus, because busi-
The photograph reproduced herewith is that of
the new power house, tipple, and rescreening
plant of the Central Coal & Coke Company at
Rock Springs, Wyoming. This mine is thor¬
oughly equipped with electrical appliances. In
addition to the full shaker screen equipment for
the preparation of the regular sizes, the small
coal is elevated into a rescreening plant where,
after passing over the rubber belts and being hand-
They Fail*
ness men of this type can not give statements
about their business affairs in the exact manner
necessarily required by the bankers, their credit
is restricted and fheir expansion checked.
There should be a greater degree of organ¬
isation and of mutual helpfulness in all lines of
trade and industry, so that American business
may be welded into a commercial and industrial
whole; the part of the government being to co¬
operate with business men, on request, to bring
about the results that will benefit business and
hence promote our national welfare.
Foreigners in Pennsylvania.
Only fifty-five and one-tenth per cent of the
inhabitants of the state of Pennsylvania are na¬
tive whites, born of native parents, according to
the annual report of the secretary of internal
affairs for 1913-14, just published. Compared
with 1890, there is an increased proportion of
two and seven-tenths per cent in the foreign
population. The total state population of 7,665,-
111 consists at the time of the report of 6,222,737
natives and 1,442,374 foreigners.
The native whites, born of native parents, num¬
bered 4,222,727, or fifty-five and one-tenth per
cent of the population ; the native whites, born of
foreign or mixed parents, number 1,806,267, or
twenty-three and six-tenths per cent ; the foreign¬
ers (white), born abroad of foreign parents, num¬
bered 1,438,719, or eighteen and eight-tenths per
cent, and the negroes numbered 193,919, or two
one one-half per cent.
Classed by nationality, the 1,438,719 foreigners
of white stock had birth in the following coun¬
tries :
.4ustria . 351,773
Ru.ssia . 240,980
Italy . 196,132
Germany . 195,185
Ireland . 165,091
Hungary . 123,498
England . 109,061
Scotland . 32,042
Wales . 39,250
Sweden . 23,467
Canada (Eng.) . 14,032
France . 9,990
Roumania . 7,752
Switzerland . 7,454
Belgium . 5,350
Turkey (Asia) . 4,484
Greece . 4,221
Denmark . 3,033
Turkey (Europe) . 2,754
Finland . 2,413
Norway . 2,317
Holland . 1,229
Canada (French) . 1,246
-411 other . 6,042
picked to remove the impurities, it is rescreened
and prepared for the western market. The com¬
pany claims that the best preparation in the en¬
tire west is now being accomplished at this mine.
The capacity of the plant is 1,600 tons a day.
It was built under the personal direction of H.
N. Taylor, the vice-president of the Central Coal
& Coke Company and is operated under his man¬
agement.
448
THE BLACK DIAMOND.
[December 4
How Philadelphia Offsets Cut Price Competition.
A coal dealer in Philadelphia, who averages
daily an output of more than 4,000 tons, said that
the actual profit on each ton is only sixteen cents!
This man does not guess at his margin ; he has a
cost system, and knows. During the last decade
the costs around a coal yard have increased re¬
markably. This has pared the coal dealer’s mar-
gin.
In all other businesses the cost has increased
greatly, but the public has been made to share
the expense. The consumer is paying more for
everythiag else except coal.
The question is : Why have not coal prices
gone up ? The answer is : The coal men have
not learned that the people look with suspicion
on “cheap” stuff. If they can get that idea into
their heads, prices will take care of themselves.
As a plain matter of fact, the public is sus¬
picious of the price-cutter. Everybody knows,
for example, that a $15 ready-made suit of cloth¬
ing is not the equal of a $30 custom-made suit, no
matter what the “cheap” fellow may claim.
Recently a coal dealer who had been “shaving”
prices as an inducement to secure new customers,
remarked :
“The public is a strange animal. I offer good
pea coal at a real bargain, and one woman tele¬
phoned and asked : ’Are you sure it is good
coal? Do you guarantee that it isn’t half dirt?
Well, Pll think it over and let you know later.
I don’t feel quite safe in ordering.’ One man
wrote: ‘How about your meight? You low-price
fellows are great on that short weight stunt. If
you can guarantee your stuff to be as .good as
- , send me a ton as a trial order.’ An¬
other man called at the office and said : ‘I would
like to give you an order for stove, but I fear
that your quality is not of the best. Last year
I got stuck on cheap coal. It was full of slate,
and the clinkers were awful I Really, I lost more
in the end than if I had bought from an estab¬
lished dealer at standard prices.’
“After I had solemnly assured him that every¬
thing was all right, he finally placed the order,
but as he passed out I could see that he was still
dubious. One woman customer was the worst
of all. After two tons of pea had been placed
in her house, she claimed that it was smaller than
the ordinary run of pea, and she refused to pay
for it. Told us to take it out; but as that would
be a losing proposition, it is still in the cellar,
and I am hopeful that she will pay for it some
day.
"Honest, my coal is just as .good as any other
dealer’s, but because it is offered at bargain prices
the public will not believe it. I am selling lots of
coal, of course, but it is to the worse class of
trade, and they add to the troubles in the busi¬
ness.”
With this in mind, it will be of general interest
to learn how Philadelphia’s most progressive
coal men are winning orders at fair prices, de¬
spite low price competition.
Practically all of these dealers state that adver¬
tising in the leading daily newspapers is the most
effective medium for their publicity. Perhaps
the newspaper advertisin.g of the George B. New¬
ton Coal Company, of No. 1527 Chestnut street,
Philadelphia, is attracting greater attention and
accomplishing more than any other matter of this
class by reason of its frequency. One scarcely
scans a morning or evening paper without noting
one of the Newton display ads. One of the re¬
cent advertisements is reproduced herewith.
This is an effective piece of publicity on atcount
of it bein.g so simple, vigorous, and truthful. It
is composed in a style of type that can be easily
reqd by the average person. It is an ad that
stimulates the reader’s confidence in the Newton
company.
Located in convenient sections of the city, the
Newton company has twenty-six yards, all
equipped with modern machinery to aid in
handling the prodiict rapidly and economically.
The delivery service includes a “fleet” of nine¬
teen two-ton motor trucks, equipped with the new
power hoists operated by the cars’ motors.
Prompt service is one of this firm’s “strong
points,” and all of the delivery men are trained
in giving polite attention to patrons.
On frecpient occasions the Newton employes
attend a special meeting held by the company, and
among other important thin.gs they are minutely
instructed in the art of extending courteous treat¬
ment to all customers. When a visitor calls at
any of this firm’s offices he is greeted in a friend¬
ly manner.
In addition to newspaper publicity, the Newton
company also spends a considerable sum each
The Plan Which Has Proved Best Is to
Get an Honest Coal and a Good Service
Which Will Stand the White Light of an
Advertising Campaign.
year in supplementary advertising. It distributes
to the factory trade large wall calendars contain¬
ing the firm’s name and trade-mark. At times
direct advertising matter — booklets, folders, mail-
in.g cards, etc., are mailed to a large list of
families. Billboard, theater program and placard
advertising is also used to some extent. Its slogan
is: “Newton Coal Answers the Burning Ques¬
tion.”
Among other leading coalmen which have won
the confidence of the public by givin.g full weight,
highest quality, and excellent service at fair prices
are : Charles K. Scull, Thirty-first and Chestnut
streets; E. J. Cummings, No. 413 North Thir¬
teenth street; American Ice Company, No. 600
Arch street; Crean Brothers, Eighteenth and
Oregon avenue; John Williams, Twenty-fifth and
Dauphin streets ; William M. Lloyd Company,
Twenty-ninth and Ridge avenue; Donaghy &
Sons, No. 1837 Market street; Bruner & Com¬
pany, No. 16 North Twenty-first street; M. Kel¬
ley’s Sons, Forty-first and Pennsylvania Railroad ;
Geor.ge W. Miller, Jr., Sedgley and Daughin, and
about coal? What do you really know about it? You buy
a yard of silk and it's measured in front of you; you buy eggs
and see them counted; you buy coffee and the scales show
the exact weight—- but coal III You send your order in.
the wagon drives up to your home and you've got to take
it for granted that you are getting a round 2240 pounds in
that ton. Maybe yoii get it — maybe you don’t.
Now. common sense tells you that you ought to be sure,
and there’s a way that you can be:
Order your next coal from the Geo. B. Newton Coal Co.,
a concern with a system of checking and sworn weighing
that absolutely precludes the possibility of mistakes; a con¬
cern that can take your money honestly because it gives
honest service in return — honest in quality and quantity;
and at the lowest prices possible for
Proper Weight — Proper Quality — Proper Preparation
Chute Prices;
Egg, $7.00; Stove, $7.25; Nut, $7.50; Pea, $5.25
^5c Added When Carried
Geo. B. Newton Coal Co.
1527 Chestnut Street
Spruce 6400— Phones— Race 3800
Our deli.'-rT at th«e prtc^ includlM Oermuntown. Oak I anp. McSro.r.
rhMtnut Hill Kniaiocton. Ovprbrook. W^Doefleld, Bala, CySH'id.
UrS-rth. rVmWood. laimdowTie. Ml»hlaod Park. Dr#.v«l Hili. etc.
A Typical Newton “Ad.”
John W. Moore, Twenty-sixth and Susquehanna
avenue.
Charles K. Scull caters exlusively to a select
family trade, and he has gained a large number
of steady customers of the class that are inter¬
ested in only the best, and are willing to pay the
right price for it. Mr. Scull’s offices are at¬
tractively furnished. The plate glass windows
are kept spotless, and their plain gilt lettering is
effective and dignified. For the retail dealer
aiming to sell to the household trade, Mr. Scull
believes that well-written newspaper advertising
is an excellent medium.
John W. Moore’s offices are beautiful and are
furnished so as to offer comfort to the visitor.
There is plenty of room, and an abundance of
natural light. In what may be termed a “recep¬
tion room,” there is a large upholstered settee of
the mission style. Back of a railing one can see
the new-style business equipment — desks, type¬
writers, etc. — and a number of stenographers busy
at work. All this makes a good impression.
Geor.ge W. Miller, Jr., is a young, progressive
dealer who believes in going out on “the street”
and creating new business when orders are slow.
He employs a solicitor trained in the selling art,
and this man is continually calling on household¬
ers. Instead of talking low price, he uses the
quality argument.
Mr. Miller believes that personality is a .great
power in the business world, and he has made it
a rule to make his personality felt. For example,
he calls frequently upon customers personallv.
He has made it known that if at any time his
service and goods are not just up to the high
standard he has set, all that is necessary is for
the customer to complain to him personally.
A number of dealers have found advertising
in the telephone directories to be advantageous.
Instead of having their names listed in the
classified section in the ordinary way, small dis¬
play cards are used. A great many people now
order coal as well as other things over the tele¬
phone, and not a few are willing to call up the
name of a firm easiest to locate. In the Phila¬
delphia telephone books the displayed ads of
John W. Moore, Crean Brothers, Martin F.
Connor, S. D. Hall, and a few others, stand out
distinctively.
One dealer is using an electrical sign to great
advantage. This sign faces on a prominent
street along which pass thousands of people dur¬
ing each day and evenin,g. The sign is painted
white, inscribed with large black characters, giv¬
ing the firm name and list of market prices. Of
course, no electric lighting is necessary during
the day, but at night it is illuminated from
overhead, and one can read it from a consider¬
able distance.
Several dealers have foilnd form letters, and
post cards to be effective publicity matter. The
letters (typewritten, or imitation) call attention
to the quality of so-and-so coal, quoting prices.
The post cards contain the firm’s name and cur¬
rent prices for popular sizes of householders’
coal, and are distributed to the public by car¬
riers. One dealer claimed that post cards of
this class was his most effective advertising.
A number of dealers believe in street car and
billboard advertising. One of the most widely
known trolley ads in the city is that of E. J.
Cummings, whose watchword is, “We deliver a
square ton.” Some of the billboard ads are ex¬
ceedingly attractive.
Few of the dealers seem to believe in “.good
will” advertising, that is : Pencils, rulers, note¬
books, desk weights, and other novelties of this
variety. Some, however, are distributing such
matter, containing their ads, at intervals, but
they are uncertain as to its real value. Adver¬
tising like the George B. Newton Company that
greets the public from every side is the right
idea. One cannot keep this concern’s name out
of mind — they don’t allow it!
About 150 of the leading coal concerns are
members of the Philadelphia Coal Exchange,
which is formed for the purpose of protecting
the trade and business, and securing the public
against short weight and other fraud in coal.
This association has brought about many im¬
portant reforms in the trade, and through its ac¬
tivity many dishonest and unscrupulous dealers
have been prosecuted. It is largely due to this
society that today there are scarcely any coal¬
men in Philadelphia who give short weight to
patrons.
The further breathing spell to January 1 given
the railways by the Interstate Commerce Commis¬
sion on the readjustment of the freight tariffs on
anthracite coal caused little or no flutter among
the anthracite companies with headquarters m
Philadelphia. “Where the rate was lowered to
western points,” said one hard coal man, “and
where these might have gone into effect a couple
of months ago, might have been an Inducement to
curtail buying. But when it comes the first of
January, the buyer has to have coal moving and a
slight difference in the freight rate means nothing
to him. He has to have coal no matter what the
freight is. We are more concerned in the consid¬
eration that commission may give to the request
for a rehearing on the tariffs on smaller sizes. To
the independents this means more than the setting
of the time for the application of the general
freight rates.”
Ordersfor two new colliers to be built by the
New York Shipbuilding Company were awarded
on Tuesday. Both of the boats are to be dupli¬
cates of vessels they have recently turned out of
their yards. One is to be a counterpart of the
collier Virginia, • launched Oct. 23 for the Poca¬
hontas Navigation Company of Boston. Concern¬
ing this boat there is a rumor current that while
it cost between $400,000 and $500,000, its owners
have disposed of it at a profit of $200,000. The
other new vessel isfor the Coastwise Transporta¬
tion Company of Boston and is to be a duplicate
of the collier Franklin, recently launched. This
is to be 395 feet long, 55 feet beam and 34.6 depth,
with a carrying capacity of 9,400 long tons. She
will cost about $700,000. These contracts, with
two new orders for tankers built by another com-
liany, raises the total to eighty-two ships now
being built on the Delaware river.
No. 23]
THE BLACK DIAMOND
449
Editor, The Black Diamond;
St. Louis, Mo., November 21!, 1915. 1 have
your letter of November 19th relative to the sub¬
ject of first aid, rescue, and sociological work at
the mines of this company, and note you wish to
know whether it is voluntary on the part of
the employes, whether they contribute financially
toward its maintenance, and whether any wages
or other payment or perquisites are given them
for taking part in such work.
We think we have a very complete organiza¬
tion — both in the matter of rescue crews, who
are specially trained in that work, and first aid
crews. We have at each of our mines rescue
and first aid stations, as per blue print attached.
Each of the stations is so constructed that they
can be used for every kind of service in con¬
nection with such duties. For instance, there is
a large sulphur room, where the men go and
exercise in the gas ; and when called upon to do
rescue work, the helmet men — or those wearing
the breathiag apparatus — go in there and test
the helmets to see that they are air tight and
gas proof.
There is a room for clothes and one for shower
bath and two rooms for the breathing apparatus
and all supplies necessary to equip them properly.
A full supply of oxygen, caustic soda, etc., is
always on hand. The large central room is used
to take care of the injured when the rescue
work is going on and is so fitted that it makes
a comfortable gathering place for the rescue
and first aid men to discuss matters together.
The buildings are all steam heated and fire¬
proof.
Our men practice once every two weeks, and
in some cases oftener, and that is quite as true
of the fire-fighting above and below ground, as
of the first aid and rescue work. It is purely
voluntary on their part, and they receive no
wages ; neither do they contribute financially;
toward its maintenance in any manner. I am
pleased to say that the men generally join in
the first aid and rescue duties very heartily, and
we feel that we have very .good organizations
at our mines in this respect.
We have two mines close together in the south¬
ern field near Carterville — one at Dewmaine and
the other near Cambria. At these two mines,
they compete for two silver cups which the com¬
pany offers as prizes — one for rescue work and
the other for first aid.
We have specially fitted up rescue cars always
ready to move, which contain every appliance
necessary for the men to do their work ex¬
peditiously and safely. These cars are specially
constructed so that the injured may be placed
on stretchers on top of them, and the seats form
lockers which contain crowbars, axes, augers,
lifelines, electric lamps, wire cutters, rubber
gloves, complete Red Cross outfit, splints, and
everything necessary for the men to cope with
any situation that might arise.
Our particular reason for being so equipped
at each of our mines is because we realize that
many lives might be lost while waiting for rescue
parties to come to us from outside stations, and
we believe that by being able to make a survey
immediately after an explosion or fire, we could
prevent many deaths or perhaps loss of large
territory underground; and that if we can get
at it within twenty or thirty minutes after it
occurs instead of having to wait an hour or two,
we may be able to reduce the loss of life and
property very materially from what it would
likely be if we had to wait for some other or¬
ganization to reach us and .give us help.
In the southern field, we have two outfits (of
three sets each) with everything complete, for
the colored teams, and one outfit of three sets
for the white team, making nine sets for those
two plants : and 1 can’t speak too highly of the
interest those men take in their work and of their
wonderful efficiency, as well as courage, which
they have demonstrated several times, not only
at our own plants, but at the mines of other
companies.
Our other plants are fitted up with complete
breathing outfits of three sets each, and it is a
source of great relief to the management of the
company to know that we are so well provided
and prepared to cope with the results of fire
or explosion.
The crews at the other mines — Glen Carbon,
-Mount Olive, and I )ivernon— are just as efficient
as the others, and 1 can’t speak too highly of
any of them.
Very truly,
A. J. iMikikheai), President and General Man¬
ager, Madison Coal Corporation.
Illinois Mining Institute.
(Special Correspondence.)
The third annual meeting of the Illinois Min¬
ing Institute was held in the city hall. Spring-
field, Saturday, November 20, the first .session
opening at 9 :'M) a. m. The address of welcome
\yas given by Mayor Baumann, to which a fit¬
ting response was given by the president of the
association, J. W. Stark, state mine inspector of
Georgetown.
The first paper upon the topic “The Mine Man¬
ager,’’ which was read by a state mining inspector,
David Z. Thrash of Farmington. The paper
elicited considerable discussion and was so inter¬
esting that by request it was read again at the
afternoon session when more members had come
in. A very animated discussion took place, the
principal participants being Messrs. John P. Reese
of the Superior Coal Company, Gillespie, Illinois;
Thomas Moses, general superintendent, Bunsen
Coal Company; Mr. Burton of Herrin, Illinois,
the newly elected president of the Institute, and
Mr. Patrick Plogan of Canton. Mr. Burton
called attention to the necessity for securirtg
a greater efficiency from the men at the face
and urged paying more attention to them rather
than concentrating so much of the attention
upon company men and surface men. In the
discussion the fact was brought out that the
present day miners seem to be satisfied with a
certain wage per day and it is difficult to in¬
crease the output and hence the general efficiency
of the mine by increasing the output per man.
It was stated that although men loading behind
different kinds of machines, such as the puncher,
chain or shortwall might be able to make bet¬
ter wages under certain conditions, they seem
satisfied to make about the same average wage.
The argument was also brought forward that
men working three days per week produced
more per day than those working six days, and
it was argued that there would be greater effi¬
ciency if the daily average for the six days
could be increased. In opposition to this it was
argued that a man naturally works harder work¬
ing part time than he will if working steadily
every day.
F. W. DeWolf, director of the State Geological
Survey, rendered a paper upon the “Relation of
Oil and Gas Wells to Coal Properties.” Mr.
DeWolf showed by a drawing different methods
proposed for plugging oil and gas wells, partic¬
ularly those that penetrate coal measures. In
the discussion Mr. John P. Reese gave an inter¬
esting description of the controversy now in
progress in central Illinois in the Staunton dis¬
trict where oil and gas wells have been discov¬
ered within the past year in territory where min¬
ing is being actively prosecuted.
At the afternon session in addition to the
rereading of the paper by Mr. Thrush, a paper
by Mr. G. E. Lyman, mining engineer of the
Madison Coal Corporation, was read entitled
"Cleanliness and Order at Coal Mines.” This
paper pointed out the .great waste that takes
place at the many mines due to disorder and
argued for the economy of greater order and
the cleaning up of the large amount of scrap
that usually is found about mine works. The
idea advanced by Mr. Lyman seemed to be heart¬
ily endorsed by a number of speakers.
In the annual election the following were
e'ected for the ensuing year:
President, Mr. Burton of Herrin.
First vice-president, Mr. Fehler of Belleville.
Second vice-president, Mr. Patrick Hogan of
Canton.
Secretary and treasurer, Mr. Martin Bolt.
Sprin.gfield.
Executive committee: Messrs. McClintock,
Stark, Reese, Simpson and Bolander.
Herrin was chosen as the place for the next
meeting. The iiresident appointed as an auditing
committee, Messrs. Fehler, 'Hogan and Stoek. .At
() :;i() a banquet was held at the St. Nicholas Hotel,
at which John P. Reese acted as toastmaster
and the program of toasts included Da\id Ross,
Mr. Bolander and Air. Stark, with songs by Air.
1 logan.
Sealed proposals will be received at the United
States Engineer’s Office, Customhouse, Norfolk,
Va., until December 20, 1915, for furnisbing about
.'i,()i)0 tons of bituminous coal. Information on
application to the Iffiited State's Engineer’s Office.
Floor Plan of First Aid Headquarters of the Madison Coal Corporation.
450
THE BLACK DIAMOND
[December 4
Life and Work of William P. Rend, Coal Producer.
The record will be content with the recital that
William P. Rend was horn in County Leitrim,
Ireland, in 1840, and died in Chicago on the last
day of Novemher, 1915. It may, because he was
an unusual man, add that he made a business of
producing and selling coal at the time when the
nation was but developing that resource in an ex¬
travagant fashion. It may add, if the recorder is
interested in such things, that he made far more
than a comfortable fortune from bis undertak-
ings.
Put the record, no matter how prolix in details
and dates, cannot, without extending itself un¬
duly, tell what this brilliant, eccentric and, some¬
times, (luarrelsome man meant to bis trade, nor
how he stamped a striking personality upon great
sections of this country. Such things do not fall
out of a mere recital of dates and facts, but
only by a close comparison of the man and the
time in which he lived.
His life covered a long span of years — seventy-
five, to be exact. His work covered more than a
half century. Within his working time he opened
and operated coal mines in four states. He
owned and operated ships on the Great Lakes.
He owned docks and distributing plants in the
west. He sold his product in a district where
live more than half the population of the nation.
In that great selling zone his Hashes of brilliant
merchandising and his keenness in production
changed, more than once, the methods of doing
the coal business and also the taste, as to fuel
' supply of the people.
To understand Col. Rend and all the episodes
which make up his life history, it is necessary
first to understand the times in which he lived,
and the nature of the country where he worked.
So, the first fact of importance is that he en¬
tered the coal business in Chicago the latter part
of 1868 or the forepart of 1869. At that time,
Chicago was a village and the present business
district was a swamp. In the entire city, no street
was paved.
At that time, the nation was flattened out finan¬
cially as a result of the Civil War. It had not
even begun to hope again — much less to plan for
the great future in store for it — because it had
no banking system worthy the name and no cur¬
rency that was dependable. In a word, it had no
program, and it had not yet brought forward the
men who were to master it and make
it grow.
At that time, the wealth was still be¬
neath the soil, and seemingly locked
there by forces which defied the in¬
genuity of a bankrupt people. But the
wealth was there, and a few men knew
that it could be dug up and used if only
they had courage and worked. Still,
the prospective manufacturer had no
large assortment of raw material upon
which to depend and the owner of
natural resources had no market, be¬
cause the manufacturing and the min¬
ing districts were not yet bound to¬
gether by a chain of reliable carriers.
Even the east was then served only by
stragglin.g and disconnected lines of
inefficient railways. America was in
those days a nation of great possibili¬
ties but no realization. It was a time
■ which called for strong men who could
be as ruthless as the obstacles they had
to overcome.
William P. Rend, who was to take a
truly great part in the dramatic pro¬
gram of his country, had been brought
from Ireland at the a.ge of seven and
had been to school at Lowell, Mass.
He had taught school in Maryland:
had fought in some of the greatest bat¬
tles of the Civil War; had moved to
Chicago to become a surveyor or some¬
thing of that sort for a new railroad
about to be built ; had, being disap-
l)ointed there, gone to the Panhandle
railroad as an assistant frei.ght agent;
and then, had become assistant freight
manager for the Chicago & North¬
western Railway. That part of his life
shows nothing except the natural bent
of his mind. He was eager and ven¬
turesome but unsettled. He had not
yet struck his gait. Still, he displayed
even then a constructive bent and a
willingness to undertake thin.gs which
while hazardous and arduous, made for
the solidification of our democratic
empire.
He did not jiarley long over the pre-
The Pioneer of Ohio and West Virginia
Passes Away in Chicago, Where He Had
Done Business For More Than a Half
Century.
liminaries of his career, for, in less than three
years from the time he was discharged from the
Federal army, he, with Edwin C. Walker, had
formed the Rend Transportation Company, which
was to do a teaming business in Chicago. He
made, so it is said, a fortune out of that, because
his teaming business tied together the eastern and
western railways which had not yet joined their
rails. As an outgrowth of this enterprise, he went
into coal. He owned a coal dock, in those days,
in Chicago, to which he shipped coal by boat on
both the lake and the old canal. He distributed
it from there by railroad to all points in the in¬
terior. Also, he sold it to Chicago people, as he
continued to do through fifty years.
An incident which occurred in connection with
that early dock property helps to explain what a
length of time has passed since then and how con¬
ditions have changed. When this dock had been
in operation for some time, James J. Hill decided
to enter the coal business. Col. Rend sold him
his first lot of coal — on credit.
In 1870, he branched out and became a producer
of coal by opening a mine at Straitsville, Ohio.
In recounting the methods then in vogue and
later, he used to tell in his merry way what he
did to introduce a new coal to Chicago when the
Straitsville field could no longer meet the demand.
His dock was on the Chicago river, a little above
the center of the city. When a consignment of
a new coal was due to arrive, he would invite
all of the coal men and all the newspaper report¬
ers to come to his place. When they had assem¬
bled, they would make an inspection of the coal
while he, perched in a conspicuous place, would
deliver a lecture telling them about its merits.
The formalities ended, a luncheon would be
served and champagne would flow like water.
"We could do such things in those days,” he
used to say, "because we had a margin of more
than a nickel a ton.”
After that, he opened the mine at Rendville,
Ohio, and then the famous Number Six mine
William P. Rend, Coal Merchant.
at Gloucester, Ohio. It was the coal from the
Rend Number Six mine which started the move¬
ment of Hocking coal into the west. No doubt
it was the introduction of this coal which was
responsible for the sprightly reminiscences just
related. Before that time, other Ohio coals had
commanded the western market; Hocking was
an unknown quantity. It was Col. Rend who
introduced it to the west where it remained an
important, if not a predominant, factor until the
day of his death. Incidentally, this Number Six
mine was, at that time, the biggest in the United
States. It was known and frequently referred to
as the most remarkable coal property opened up
to that time.
Shortly after exploiting this coal, he opened
the Number Four mine at Jackson Hill and the
Number Two mine at Gloucester.
All of these properties were sold to the Sunday
Creek Coal Company when the late Judge Stev¬
enson Burke got a long list of valuable coal
mines together and tied them into a common
ownership with the Columbus, Hocking Valley &
Toledo Railway.
To open mines and to sell them out to a rail¬
road combination at a profit seems in these days,
when so much of coal history is an open book, a
simple and natural thing to do. But the prece¬
dents had not, then, been established. Nor does
the recital of the mere incident even so much as
hint at the romantic story which is just beneath
the surface. Judge Burke and his associates
had, by one of the most brilliant feats of Ameri¬
can finance, bought three railroads and vast coal
properties with practically no capital but their
courage. As a matter of fact, they started with
about $35,000 in cash and in a few brief months
had financed their holdings for $14,000,000. Such
things could be done in those days of pioneering
because the financial tricks, now old, were new
and attractive.
Col. Rend and Judge Burke, both brilliant
fighting Irishmen, were then the strongest of
opponents, and had many a quarrel. They came
to an open rupture when this coal combination
was in its advanced stages, and their dispute
was due to be settled in court. Burke stated
his case to court and jury and Rend replied; after
that lively preliminary when the quality of both
minds was developed, the court took a recess for
luncheon. In that short half Lour, the
two men came together. In the end,
it was agreed that two such men
should be workiag together instead of
opposed to each other. After that,
the Sunday Creek Coal Company took
over the Rend properties and they
made a part of the famous Hocking
Valley collection.
Col. Rend next went to McDonald,
\V. Va., and opened the Laurel Hill
mines — the No. One, Two, Three and
Four. These he developed until they
had a capacity of 1,800 tons per day
each. While he was running these
mines, he still owned a dock on the
upper lakes over which he supplied
coal to the warring tugboat lines. At
that time the fight for towing business
was so keen that the fastest tug .got
the “tow.” The trig captains, who
used to race for miles to get a short
"tow,” knowing that their business de¬
pended on their speed, bought the best
coal they could get. The Laurel Hill
was the product which seemed to suit
them best, and Col. Rend prospered.
He also sold his coal to the lake ships.
In the end, he sold these mines to
the Pittsburgh Coal Company when
that was forced about 1901.
These matters show the business
shrewdness of the man, but they do
not be.gin to hint at the difficulties
which attended the opening of a coal
mine in the mountain districts of
West Virginia. The niining camps
were isolated and it was only the
roughest sort of men who could be in¬
duced to go there to work. At one
time, these men went on a strike and
the mining camp was in an uproar. To
protect his property, Col. Rent caused
to be shipped in a machine .gun and
some men to man it. He himself was
on duty. They heard one morning that
the mine was going to be attacked by
a mob that night. Accordingly, the de¬
fenders of the property took a position
in a commanding ravine and mounted
451
No. 23]
the machine, gun ready for action. The miners,
expectiag to take the camp by surprise, were sur¬
prised in return, and the strike was broken.
After these mines with their interesting his¬
tory had been sold to the Pittsburgh Coal Com¬
pany, Col. Rend went farther back into West
Virginia and opened five mines on Arbuckle Creek
at Thurmond. There he was working the Fire
Creek and the Sewell seams, both known now as
the real New River coals. When he had devel¬
oped these properties to full capacity, he sold
them to the Berwind White Coal Mining Com¬
pany.
VVhile these mines were still in operation, he
opened the Dugger mine in Indiana, from which
he produced the Peacock coal that was made
famous by his selling methods.
In 1907, he opened the mines in Franklin coun¬
ty, where he had, at the time of his death, the
Number One and the Number Two. It was
one of his great dreams, when he opened that
coal, that one day he would find a method for
coking this western coal. He hoped that he
would be first to offer a domestic fuel that would
satisfy the western trade as to smokelessness
and also a by-product of gas to meet the growing
needs of the western cities. He never realized
that ambition, but he came as near to it as any
man can. He was at the office for the last
time on Saturday of last week. On that day,
the news went round Chicago that a contract
had just been signed for the building of a battery
of ovens of a new style at St. Louis. These
ovens are to make coke of Franklin county coal.
At the time of his death. Col. Rend was also
operating a mine near New Lexington, Ohio, on
the Cincinnati & Muskingum Valley Railroad.
When the last wage conference between the
miners and operators was held, almost two years
ago, Col. Rend attended some of the meetings
held at the Great Northern Hotel. He was speak-
While the eastern states are embroiled in a
triangular rate dispute, Illinois and Indiana are
confronted by a situation which may drive them
to take action at any minute. Their situation
may be condensed as follows :
“The Twin Cities (with a population grown
from 366,350 in 1900 to 580,232 in 1914) offers
the largest market for coal west of Chicago, while
the recent extensive development of the cement,
brick, tile, gas, public utilities, and other manu-
facturin.g enterprises, all substantial users of coal,
has brought about intense competition directly
with eastern coal moving from the docks at the
head of the lakes.
“After various periods of rate war (from 1896
to 1904), between the lines serving the docks at
the head of the lakes and the carriers handling
northern Illinois coal, a basic adjustment was
finally reached (August, 1904), naming a ninety-
cent rate from Duluth and $1.40 from Illinois
mines and all south lake ports to the Twin Cities
— all intermediate rates being predicated on such
arraagement. This rate status prevailed uninter¬
ruptedly and with apparent satisfaction to all
parties at interest for ten years, when in Decem¬
ber, 1914, the northern Illinois and lower lake
port rates were advanced to $1.50, while the Du¬
luth-Twin Cities rate was advanced only to
ninety-six cents.
“The present effective tariffs (since October
1st, 1915) carry still an additional ten-cent ad¬
vance from northern Illinois mines and lower lake
port — with no change zvhatcvcr in the Duluth-
Twin Cities rate, which remains ninety-six cents,
regardless of the thoroughly understood assur¬
ance of the carriers that no discrimination against
Illinois coal was contemplated or would be per¬
mitted in their effort to secure additional revenue
on coal.
“The maximum concession suggested for the
new tariffs, now being prepared presumably in
response to the insistent demand of the Illinois
operators for fair treatment — contemplates the
re-establishment on fine coal only of rates equal¬
ing those (on all sizes of coal) moving from the
docks at Duluth and Superior to common north¬
west destination. The volume of the so-called
major (Lump, Egg, and No. 1 Nut) sizes of Illi¬
nois coal, shipped to these same Northwest points,
is from five to eight times the volume of fine
coal that it is proposed to protect with the lower
rate. The size coal from Illinois must bear the
full burden of two discriminatory advances in
rate within less than five years. It would seem
apparent, therefore, that the Illinois Coal Oper¬
ators cannot permit such neglect of their rights
THE BLACK DIAMOND.
ing then of an incident concerning which very
few knew. His reminiscences revealed the fact
that he arranged for the first joint conference
ever held between miners and operators. This
first meeting was held in Chicago. Prior to that
time, the individual operators had made con¬
tracts with their own men. These expired at dif¬
ferent times and were not lived up to. The
situation was semi-organized chaos. Mike Ratch-
ford was then the head of what there was of
the miners’ union. He traveled to Chicago to
talk over the situation and suggested that the
miners and operators should get together and
put an end to mining irregularities. He appealed
to Col. Rend, who undertook to arrange a meet¬
ing of the mine owners, calling in Col. Sweet,
Major Lemmon, Walter S. Bogle and a few
others. Out of this meeting grew the joint con¬
ference which has become such a factor in coal
trade affairs.
This, then, was the record of his life. He saw
Chicago develop from a village into the second
city of the nation. He saw the coal trade de¬
velop from an industry where the best handling
equipment was a wheelbarrow to a point where
a western coal is to be coked as a domestic fuel
while the by-products will go to support a larger
industry for the nation. He saw the railroads
grow from practically nothing to the greatest
system of transportation in the world. Of all this
he was a part and with it he had as much to do
as any other man.
And all the while he was not merely a “grind¬
ing business man.’’ He made money, to be sure,
but at home he was a cultured gentleman, spend¬
ing his evenings with his violin, which he played
exquisitely, or reading the classic literature in
the original Greek and Latin. At other times he
was a philanthropist, doing his charities modest¬
ly. He was a faithful churchman of the Catholic
persuasion. His funeral was from Mount Carmel
Church on Thursday morning.
to go unchallenged nor omit demand that they be
fairly and fully protected in their equal enjoy¬
ment of the markets in territory that logically
are their own.
“That the Duluth-Twin Cities rate is purely
local and under the sole domain of the Minnesota
Railroad Commission and cannot by order of the
Interstate Commerce Commission, after full in¬
vestigation, be made a proportional rate — predi¬
cated on a three party movement from eastern
mines, via rail, boat and again rail (all interstate)
to destination — is a matter that must be promptly
— once and for all — determined, if Illinois is not
supinely to acknowledge the perennial domination
of the most attractive markets of the Northwest
by eastern coal, moving, wholly illogically from a
conservation of proper economic standpoint, over
a 1,500 mile route at almost an equal transporta¬
tion cost as compared with Illinois coal origin¬
ating within 400-700 miles and moving all rail.
“The recent striking growth of coal produc¬
tion in these eastern coal fields (a substantial por¬
tion of which coal is produced by non-union
labor) and this early repetition of discriminatory
freight rate advance on Illinois coal indicates the
peril of the industry in Illinois and makes its
operators naturally apprehensive of this competi¬
tion from the docks, which now pours thirteen to
fifteen million tons of coal into this northwestern
section each year via the lakes, all rail and car
ferry. To see a territory in which Illinois mine
owners have, after years of effort and at great
cost, built up a market, ruthlessly closed to their
product is a warrantable occasion for anxiety
and concern.”
Cross-Eyed Arbitration.
In the southwest, the question has been raised
as to what sort of evicjence is required to prove
a violation of section four of the wage agree¬
ment. This is the clause which says that an
operator may not discharge a man because of his
affiliation with the union or his activity in union
affairs.
The case in question arose because, on Novem
ber 25, 1914, Mike Broshears, member of the
miners’ union, applied to the Deimer Coal Com¬
pany for a position as shot firer or in some other
capacity. He was refused employment. The min¬
ers’ union declares that it was because he was a
member of that organization and active in its
affairs. The coal operator gave no reason. They
contend they were not discriminating because they
have no objection to any member of the union.
as is evidenced by the fact that all of the men
in their employ are union members.
The case was heard by Judge J. H. Evans of
Booneville, Ark. Among other things, he says:
“There is nothing in the testimony which sug¬
gests that the refusal to employ Mike Broshears
was on account of any personal prejudice against
him, and it remains to be determined whether
the proof satisfactorily establishes that the re¬
fusal to employ Mike Broshears was because of
his affiliation with the U. M. W. of A.
“The proof is short and simple, and there is
no witness who declares, and there is no direct
proof in the record, that Broshears was active in
matters affecting the organization.”
Thus having declared that there was no evi¬
dence in support of the claim. Judge Evans pro¬
ceeds to say that he doesn’t consider direct and
positive proof absolutely essential. He merely
says that he got “an impression” from the argu¬
ment and otherwise that the section in question
was violated. On that “impression,” he grants
Broshears reinstatement and also compensation
of $3.34 a day “from November 27, 1914, until
the final decision in this case and until Broshears
is again employed.”
Colorado Coal Merger.
Denver, December 2. — A merger of nearly all
the coal mines in Colorado excepting those owned
by the Colorado Fuel & Iron Company, with a
capitalization of $25,000,000, has been arranged
through the efforts of Charles T. Brown of the
New York banking house of Henry L. Doherty
& Co.
A tentative plan was submitted to all the oper¬
ators by Mr. Brown several weeks ago, and he
says the merger is practically assured. He told
the operators that the annual business of the
merged company would approximate 6,000,000 tons
and that the earnings, exclusive of interest on the
bonds of the underlying companies, but including
all other charges, would be at least fifty cents a
ton. Lost territory for sales in Kansas and Ne¬
braska, it is believed, can be recovered and an¬
other 1,000,000 tons sold.
Forty-one companies, with a total issued capi¬
tal of $28,238,000 and a total bonded indebtedness
of $17,000,000, are included in the merger. These
companies own 92,000 acres of land, lease 24,000
more and operate seventy-three mines. They have
machinery and equipment valued at $9,600,000.
The annual production, as in 1914, is 5,085,008
tons. -
Bituminous Prices Soar.
New York, December 3. — (Special Telegram.)
— Bituminous coal is selling in the Pennsyl¬
vania regions at two dollars a ton at the mines.
Sales were numerous at this price today and
predictions are that next week will see prices
much higher. New England buyers are in the
fields and this has given quite a stimulus to
trade.
While southern coals are easy at Hampton
Roads, transportation cannot be secured for
them to New England points. Practically
every schooner that can stand insurance tests
is going off shore. Rates from New York to
Sound points have advanced radically, one
dollar being paid to Providence from the
southern ports; one dollar and fifty cents was
paid to Boston.
Coastwise Coal Rates Soar.
As indicating the shortage of vessels for
coastwise coal carrying, a charter was fixed on
Tuesday for several barges from Hampton
Roads to Boston at $1.50. Practically no large
schooners are now available, those offering
for charter being mostly from 300 to 700 tons.
Sound rates have also taken a rapid advance,
as witness the fi.xing of a boat from New
York to Providence at $1.
Coal Trade in Spain.
The American consul at Jerez de la Frontera,
Spain, under date of October 5th, writes The
Bl.\ck Diamond of the coal situation there as
follows :
“Jerez de la Frontera is not a wholesale point
in this commodity, receiving its supplies from
Cadiz and Seveille, and, there being no manu¬
facturing industries, aside from the making of
wine, the consumption is small. The annual con¬
sumption of the Province of Cadiz is 65,000 long
tons of English and 35,000 of domestic, of which
Jerez takes 6,000 tons of the imported stock. The
.gas plant, which is the largest local consumer,
is a branch of the Compania Madrilena de Alum-
brado y Calefaccion por Gas, of Madrid, where
all contracts for supplies are made,”
The Illinois Rate Situation in a Nutshell.
452
THE BLACK DIAMOND
[Deceml)er 4
Window Displays in Dull Seasons.
In a middle western city is a coal retailer who
has an exceptionally .good show window. It is
most effectively decorated at this time, with lay¬
outs of the various coals handled, price tags,
and a little literature — of the right kind, etc.,
while on the other side of the entrance is a
rousing electric-fan-red-tissue-pai>er fire. The
window pleases those who pass. It is attractive
and suggestive and as it ought to be.
Hut during the lon.g warm weeks of the early
fall those windows were sorry looking places.
Of course the dealer was selling very little coal.
Nobody was thinking about coal. The very time
to call attention to coal by an appropriate win¬
dow display. Instead these windows with the re¬
mains of former displays, bedraggled streamers
of red crepe paper, and forlorn, dust covered
heaps of coal in the middle of the floors, re¬
minded passers-by of nothing so much as an
almost empty summertime coal shed. They ex¬
erted no pullin.g power at all. Hut when the cold
weather came and forced customers to the office
or to their telephones, then the window man sum¬
moned the courage and enterprise to dress up
his window — at a time when he did not need a
window display.
He neglected an obvious and an available asset
at the time when whatever help it gave the
salesmen would have been very much appre¬
ciated. Anything would have been better than
the feeble showing he made. A window washer
and a janitor with a broom and mop would have
recommended the business more than the lament¬
able windows which were permitted to remain.
Even a placard with some punk pun like “'It’s
hot now hut you won’t need to sweat as hard
if you see to it that you are coaled against the
winter.” The time to boost sales by window
displays is when sales need boosting.
Why Not Do Your Coal Buying Early?
For the last few weeks, a .great deal of space
has been used up by the newspapers in advocating
the merits of the movement, "Do your Christmas
shopping early.” I'here are many grounds put
forth as reasons for provident purchasing and
one on which a considerable part of the stress
is laid is that belated shopping is awfully hard
on the sales forces in the stores. Nobody knows
better than the retail coal dealer that belated
purchasers of coal work severe hardships on his
mules and horses and his drivers. Let a sudden
blizzard develop anywhere in the country. The
next mornin.g about all the traffic you sec on
the streets is composed of coal wagons, drivers
bundled in lots of old clothes, mules or horses
sweatin.g but with icicles hanging from the long
P;,;,.. nostrils. Each of these drivers
is out in response to insistent demands on the
l)art of some consumer. His alternate exertion
in unloading and the drive to the yards again
with clothing freezing on him is real cruelty.
And the S. P. C. A. enthusiasts are busy at their
windows, ready to jump on the miserable driver
and his ‘‘abused" team at tlie slightest oppor¬
tunity. Why not cite this set of circumstances
as a good enough reason to ‘‘Do your coal buy-
in.g early?” ,A suggestion to the effect that the
various humane society organizations get behind
some such movement ought to get their support
and through them get inexpensive publicity. The
coal trade man likes to send his teams and his
men out in severe weather no better than they
like to go. A’et ])rocrastinatin,g coal purchasers
make it necessary to do so and there are a lot
of i)eople who do not reason but who see an
outlit with the dealer’s name on the wagon and
a horse with balls of snow and ice under his
hoofs floundering about in the drifts and con¬
clude that this dealer is ‘‘mean to his horses.”
Then they go and call out some other dealer’s
horses on the same kind of a day.
Grate Fires as Schools for Consumers.
Coal is coal to the average householder, one
kind merely more expensive than another, except
to those householders who have open fireplaces
in their homes and who see the coal burn. In¬
telligent buyers, those who can he convinced of
the superior merits of superior coal, are usually
those who have seen it burn. Talk to a man or
a woman, whose only knowled.ge of coal is that
it is shoveled into a furnace, about the combus¬
tion of one kind of coal compared with that of
another and you make no impression, d'alk to
those who have all their lives lifted lumps of
coal from the scuttles beside their open fires
and dropped them on the coals and you are going
to get somewhere.
In a certain town where the smoke evil has
been getting a lot of attention a greater degree
of co-operation was obtained, it was noted, from
those householders who heated their cottage
homes with open fires than from the people who
depended upon furnaces. The open fire is a
good thing from the coal man’s point of view
and deserves his support. Whatever the future
of the means by which homes are heated — and
the trend is certainly in the direction of the
central heating plants — the home maker will want
an open fire on his hearth. The fireplace is con¬
tinually doing the coal man a good turn and
he can well afford to do what he can to cn-
coura.ge it.
Lift the Shadow From Your Coal.
Most of the 'people who are buying coal today
read in their geographies, when they were in the
grade schools, of the deplorable conditions under
which coal is mined. They were hound to take
for granted what they read about the poor, ig¬
norant, miserable miner, the unfortunate and
ground-down breaker boys who simply did not
have a chance, and lurkin.g back in their minds
is such a thought whenever they give the sub¬
ject of coal any special consideration. People
who are up with the times at all know in a
general way that conditions have improved, that
machinery is lifting a good deal of the onus,
that the child labor laws are freeing the children
from serfdom, etc., but there is always a more
or less distinct impression of misery which has
l)een undergone before that coal was put on
the market.
Now the coal man knows that such circum¬
stances are exceedin.gly rare; that conditions
under which the coal miners work are as good
or better than those prevailing in many other
industries. Pictures are usually available of
the mining operations and mining towns where
the coal handled is produced. 'These would serve
to dispell this lurking delusion and would cer¬
tainly he an influence in favor of the dealer who
made use of them, together with a story of the
mine and surroundings. At least they would
.go a long ways toward establishing good will
and this is a matter which every l)usiness man
wants for his business.
Mining Law Convention.
It is announced by the United States Hureau of
Mines that:
‘‘.\ convention that will act on recommenda¬
tions regarding a general revision of the Federal
mining laws will meet in Washington, 1). C., on
Dec. I(). All the known mining societies in the
United States have been invited to send dele¬
gates, and it is hoped that the mining industry
will be so well represented that the action of the
convention will he regarded as expressing the
wishes of the industry.
“Some of the resolutions that will come before
the convention will recommend the fixing of a
reasonable term of years beyond which placer
claims shall be immune from attack on the ground
of fraud, full privilege of appeal in all cases of
contests over locations, recording of notices of
mining locations so as to insure public notice, the
abolishment of the law of the apex, and the ap¬
pointment of a government commission, under an
act of Congress, to investigate and to make rec¬
ommendations as a basis for the revision of the
mining law.”
An Ad Criticism.
A certain retail coal company sends the ad¬
vertisement shown herewith to the Ad Critic,
hut asks that the name be omitted for reasons
known to them.
From a layout or type arrangement standpoint
the advertisement seems to be a trifle crowded
and is confusing to the reader. The general ap¬
pearance of the advertisement catches the eye
without making any one impression upon the
reader. The Ad Critic suggests leaving out the
illustration in the left hand corner and puttiag
the catch line, “Don’t Let Old Crimp Catch You
Napping,” in the center.
We have never heard of winter being called
“Old Crimp,” however it may be a common name
Don’t Let
'OLD CRIMP”
CATCH YOU NAPPING
THE COLD WINTER DAYS WILL SOON BE
HERE.
NOW
Is the Time to Order Youi
Whiter
COAL SUPPLY
—when DELIVERIES AtiE PROMPT. Don :
w>'>t tiniil^the l.is( minute, untjl real win¬
ter weather sets ni. when ihe sir'eets are filled
with snow, when deliveries are uncertain.
Place your iiijers NOW and wUh uw- you
will be safe OUR COAL NEVER DISAP¬
POINTS— that’s because .fs THOROUGH¬
LY SCREENED, free from stale and dirt.” it's
all coal — gel the best —
’Phone Us Your Order Today
* AtnrSRTISSR'S NAUR OtfITTSD
Don’t Toke • Ch*nce on Coal
You Know Nothing About.
For Fumades Our Coal
positively .cannot be excelled
by any one — for it is o^lcd
for more heat and less clmk-
ers. So what more do you
want — Then, loo, our guar¬
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AS PSR ASQUBST.
The “Old Crimp” Advertisement.
in the section of the country in which this com¬
pany is located, and if so the use of the name
in connection with the advertisement is good.
With the catch line in the center, we would
not suggest any change in the arrangement of the
rest of the type matter or the illustration to the
ri.ght of it. We like the idea of the helpful hint
to users of coal for furnaces given in the illus¬
tration, and were we writing the advertisements
we would give such a hint in every one of the
ads — say a hint to housewives on cooking coal ;
to users of coal for heating stoves, and others
with appropriate illustrations.
The argument presented is good. It is ri.ght
from the shoulder and is stated in a business¬
like manner. It is logical and in logical order.
Joseph J. Kean, president of the Freesport Coal
Company, has organized the West Side Coal
Company in Detroit to operate retail coal yards.
The former yard of the Contractors’ Supply
Company, on Woodland avenue and the Grand
Trunk railroad, has been taken over and is be¬
ing operated under the name of the Contractors’
Fuel & Supply Company. A second yard has
been opened on Dragoon avenue and the Wabash
railroad, and a third is being prepared on Ferdi¬
nand avenue and the Wabash. Mr. Kean is presi¬
dent of the West Side Coal Company; R. H.
Dewey, vice-president; M. L. Kean, secretary and
treasurer, and C. A. Slater, a member of the
board of directors.
No. 23]
THE BLACK DIAMOND
453
Avoiding Mine Suspensions.
At the San Francisco meeting of the American
Mining Congress a resolution was passed to the
effect that the congress shouTd use its influence
to try, in some way, to avoid a suspension of
the mines as a result of negotiations on the wage
question this coming sprin.g. The belief among
coal mine operators is that this is a prolific
source of trouble to the coal mines.
As Carl Scholz, president of the congress, put
it, the present situation results in the spasmodic
operations with driving of the output to the
maximum one month, only to allow the mines
to lie idle the next month. He considers this
as distinctly to the detriment of both the oper¬
ator and the miner. It makes hard work for the
miner one month and causes him to lie idle
the next. It raises a small percentage of coal
prices one month only to have a small volume
of coal or none at all sold the next month. This
causes a user of coal to create storage facilities
and storage piles perhaps at an increased price
and thus influences the average price that is paid
for coal durin.g the year. The system, it is
generally believed, does no one any good, but
all concerned a lot of harm.
The matter has been discussed l)y the officials
of the mining congress with officials of the
various coal operating associations. They all
think the aim is good. Every coal operator wants
to get away from these periodical suspensions.
As to whether the mining congress should in¬
terfere in matters of this kind, opinion differs.
The better class of coal operators do not believe
this comes within the province of the congress.
Most all of the operators, while endorsing the
plan, raise the question ; How can it l)e made
possible? Secretary Callbreath, who, perhaps,
is responsible for the movement, suggests about
the only practical way right now. He suggested
that ne.gotiations should be started early. That is,
he believes, the miners and operators should get
together about the first week in January. lie
thinks that between that time and the first of
April there is plenty of opportunity for the two
sides to discuss all the questions involved in an
ordinary labor dispute. He believes that if the
issue were clearly drawn before the middle of
January the ^machinery of the government, of
the coal operating associations, and the miners
union could be used to straighten out any tangles
before the first of April and thus get an agree¬
ment without a strike.
To this plan there is raised this one objec¬
tion. The forehanded consumers of coal usually
begin to create their storage piles about the mid¬
dle of December. Some few begin as early as
the first of December. By that time they have
arranged for storage space and have set aside
the money to pay for the coal. Therefore they
have mapped out their program. To be.gin dis¬
cussing the labor question after that does not
prevent storage of coal which is the main pur¬
pose of the movement.
It is getting to be, for various reason, too
lata this year to handle this matter in such a
way as to avoid the stora.ge of coal. The miners
union is committed to the plan of continuing
work duriag negotiations, but this is clearly a
palliative and no solution of the question. If
the consumer went ahead on the general assump¬
tion that the miners were going to continue work
there would be no assurance that a strike would
not be called if the two sides could not agree.
Thus the consumer might be lulled into a sense
of security only to have the mines shut down
and his supply cut off when his bins were bare.
Plainly, then, the consumer cannot rely upon an
amiable policy on the part of the union.
That the larger consumers take this view of
the matter is indicated by the fact that some of
the railroads already are beginnin.g to store coal
and the other railroads say that they will within
a very short time.
In fact, the storage movement will be in full
swing within the next few weeks. Following
that will come the public utilities comi)any and
other large concerns which will start storing
their coal by the middle of December and will
continue during January, February and March.
It has been su.ggested, and the suggestion seems
sound and good, that at the forthcoming con¬
ference between the operators and miners definite
agreement should be reached that, six months
before the expiration of the scale now agreed upon,
the first meeting between the operators and the
miners to negotiate a new scale shall be held.
That is. it has been sug.gested that the first meet¬
ing be held in the first week of October preceding
the expiration of the agreement. That will give
six months in which to negotiate. Discussion will
start fully three months ahead of the time when
the storage movement be;gins. If this is done, it
will be possible for buyers to determine whether
or not there is a serious likelihood of a strike.
1 f there is no danger of a strike, the storage
movement, of course, would be killed. If there
is danger, then the storing of coal could be done
with confidence and according to a more or less
ilefinite program.
Wabash-Pittsburgh Change.
A new interest has been created in the Wabash-
Pittsburgh Terminal Railroad reorganization,
which is of interest to the coal trade, due to the
large coal land holdings of these interests in the
Pittsburgh region.
Steps have recently been taken by Sutro Broth¬
ers & Co., H. P. Goldschmidt & Co., and other
New York bankers to form a syndicate to under¬
write the assessments on the first mortgage bonds
of the company. The general situation is now
much more favorable and the earnings of the
property are increasing rapidly.
The general manager of the company says that
the company’s coal business could not be more
satisfactory, both as to prices and as to output,
which last month reached .300,000 tons. The
company further is in a fortunate position in
not having tied itself up with contracts at former
low prices, but is now getting the benefit of cur¬
rent high prices, which arfe around $1.50 a ton.
Cost of production has reached a figure as low
as the lowest cost operations of other similarly
situated properties, and this, together with the
high prices being obtained, will produce satisfac¬
tory earnings in the immediate future.
Several new coal operations have been started
along the Terminal railway lines. The ore move¬
ment is showing a heavy improvement and the
Carnegie Steel Company, which has always had
a contract with the Terminal for delivery of
traffic, and was always allowed to lie dormant, is
again turning considerable business over to the
Terminal railway.
Hocking Valley Rate Hearing.
(Concluded from page 446.)
coal prosperity of the states in question are so
largely interested.
Some twenty years ago, he stated, Pittsbur.gh,
as a basing point with a $1.25 rate to Toledo, con¬
ceded the justice of a twenty-five cents per ton
in favor of Ohio coal to the same destination over
the western Pennsylvania field. A similar spirit
of justice had prompted the railroads to extend
the Pittsburgh $1.25 rate to the Fairmount, Kan¬
awha and other West Virginia fields. Com¬
parative length of haul was not considered so
much as the natural outlet for the coal, although
a higher rate was afterwards established for
West Vir.ginia coal coming from more remote
sections. Mr. Venning also urged the fairness of
the Ohio rate into Chicago, as compared with
$1.90 for the Pittsburgh district and $2.05 for cer¬
tain West Virginia points. The force of his testi¬
mony was that further reduction in the Hocking
Valley rate into Toledo would disturb the present
rate relationship in all four of the states consid¬
ered. The Pittsburgh and Fairmount districts
mi.ght be expected to enter prompt protest should
Hocking coal be given no additional advantages
that were sought through this hearing. He
claimed, further, that the several groups of des¬
tination points would lose the proper relative ad¬
justment which they now enjoyed in the matter
of coal rates, and injustice would be done to cer¬
tain industrial centers. In the witness’ opinion,
the ton-mile basis of fixin,g coal rates was neither
fair nor logical.
11. K. Wasson, general freight agent of the
Hocking Valley Railway, submitted from the
stand some figures having to do with the road’s
local and foreign coal revenues. The total ton¬
nage for the year ending June 30, 1914, was 2,546,-
119 tons, representing 1,180,479,831 ton miles. The
earnings on this coal, at the $1 Nelsonville-Toledo
rate then in force, for the Ohio portion of the
tonnage, was $3,653,122.41. Had all this coal been
handled at the rate which the road is forced to
accept foreign coal at Armitage, the K. & M.
jiinction near Nelsonvillc, the year’s revenue
would have been reduced to $1,106,922.83, brin.g-
ing receipts down to something like $100,000 be¬
low operating e.xpenses. The rate on foreign coal,
amounting to two and one-half mills per ton mile,
the witness stated, while not compensatory if
applied to the total tonnage of the road, yielded
a small revenue, taking in connection with the
earnings from Ohio coal. The former had to be
taken on a low' competitive basis, in order to .get
the business. Practically all of the foreign coal
originated on the Chesapeake & Ohio, which road
fixed the through rate. The division rates were
agreed upon by the traffic departments of the
three participating lines — the C. & O., K. & M.,
and Hocking. Mr. Boyle, of counsel for the
plaintiffs, drew out the admission that Mr.
Stevens, president, and Mr. Capels, vice-president,
of the C. & O., also filled the same offices in the
Hocking Valley organization, and commented on
the apparent inconsistency of their coercing the
Hocking Valley into a competitive status with
other carriers. Mr. Wasson insisted that the
Hocking was not played a favorite, and that it
was receiving only about half the tonnage that
might be .given to it by the C. & O.
F. V. Davis, statistician for the Ohio Bureau of
Coal Statistics, was examined on his exhibit
which gave the movement of coal originating on
the Hocking Valley during the year ending June
I, 1914. The tonnage for on-line destination
points was 507,330 tons, and for off-line consign¬
ment 1,355,228, making a total of 2,868,191 tons
from mines located on the Hocking Valley lines.
Of this 597,189 tons were railroad fuel and 398,-
444 lake coal.
It is understood that but one important witness
in the Hocking Valley Railway defense remains
yet to be heard, and that is Auditor Hodgson.
He is regarded as the star witness, as it is be¬
lieved that he has given elaborate preparation to
a correction, from the railroad standpoint, of the
exhibit of Mr. Hillman, chief rate expert for the
plaintiff, on whose compilations the whole pro¬
ceedings are mainly based, showing up alleged
errors and false deductions.
Counsel Lewis, of the Toledo & Ohio Central,
announced Wednesday evening, that in view of
the thoroughness with which the Hocking had gone
over the .general ground, his defense would not
require possibly more than one day. From pres¬
ent view'point it looks as though the arguments
on the rate case would be reached by the middle
of next week.
Coal Mining Institute.
The Coal [Mining Institute of America will hold
its winter meeting at the Fort Pitt Hotel, Pitts¬
burgh, on December 21 to 23. The following is
the pro.gram ;
FIRST DAY. TUESDAY, DIX'EMBER 31.
10 A. M. — Business session.
1:30 P. M. — Question box.
'Xo What Extent Has a Machine Been Developed for
Mining and Loading Coal?” Leader, S. A. Taylor, W.
A. Weldin.
”V\ hat Part Should the Gasoline Locomotive Take in
Mine Haulage?” Leader to be provided.
“Is the Purchase of Electric Power Advisable for Coal
Mining Oneratiois?” Leader, J. E. Jenks, general man¬
ager VV. Penn Electric Company.
0:30 P. M. — Institute dinner.
SPEAKERS.
Sion B. Smith, ‘‘The Bearing of the New Compensa¬
tion Act on the Coal Mining Industry of Pennsylvania.”
H. B. Mellor, “Mining Extension Work of the Uni¬
versity of Pittsburgh.”
SECOND DAY, WEDNESDAY, DECEMBER 22.
10 A. M. — “Concentrating Methods of Mining in the
T.ower Connellsville District,” W. H. Howarth.
“The Use of Storage Battery Locomotives in Mines,”
' S. B. Belden.
1:30 P. M. — “Permissible Explosives; Their Advan¬
tages,” Joseph Williams.
“Their Disadvantages,” Joseph Knapper.
“.Mine Gases,” Edwin M. Chance.
“A New Methane Detector,” G. A. Burrell.
THIRD D.4Y. THURSDAY, DECE.MBER 23.
10^ A. M. — “Welfare Work and Its Relation to Work¬
men’s Compensation,” J. H. W’hite. Bureau of Mines.
“Workmen’s Compensation and Mine Safety With Ref
erence to Cost of Coal Production,” H. M. Wilson
director -Americ.'in Mine Safety Association.
General discussion.
Adjournment.
The Lehigh and Wilkes-Barre Coal Company
with offices at No. 143 Liberty street. New York,
has issued the following circular : “The Su¬
preme Court of Pennsylvania, on October 28,
1915, declared unconstitutional the act of June
27, 1913, imposin.g a tax of two and one-half
per cent on the value of anthracite coal prepared
for market. When assured by the commonwealth
of Pennsylvania that no further proceedings will
be undertaken to enforce payment of this ta.x,
the amount of tax collected by this company,
under this act, will be refunded. The tax now
being added to the price of anthracite coal sold
by this company is imposed by a later act of
the legislature of Pennsylvania, approved June
1, 1915, which supersedes, as of that date, the
act recently declared unconstitutional. 'I'he valid¬
ity of the later act has not been determined.”
It is announced that the Jeffrey Manufacturing-
Company has opened a new branch office in the
M. Ik. M. building at [Milwaukee, Wisconsin. The
office will be in cliarge of Q. Dufour, who is
qualified by long experience and training to solve
elevating, conveying and transmission problems.
454
FUBIiISHED EVEBT SATUBDAT BT THE
BEACH EIAMOHE COUPAmT.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice m the United _ States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all eommunications to
THE BEACH DIAMOND COMP ANT (INC.)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, December 4, 1915.
INDEX.
Special Articles.
Page
The Ohio Rate Case and Its Effect on Coal Markets. 445
The Hocking Valley Coal Rate Hearing . 440
Failures in American Business; Why They Fail.... 447
How Philadelphia Offsets Cut Price Competition.... 448
Mine Clearing House . 449
Illinois Mining Institute . 449
Life and VV'ork of William P. Rend, Coal Producer. . 450
The Illinois Rate Situation in a Nutshell . 451
Colorado Coal Merger . 451
Cross-Eyed Arbitration . 451
Field of the Retail Dealer . 452
An Ad Criticism . 452
The Effort to Avoid a Mine Suspension . 453
Wabash-Pittsburgh Change . 453
Coal Mine Institute . 453
Editorial . 454
News Local to Chicago . 456
•Anthracite Developments . 456
Small Activities . 450
Facts Which Determine Our Export Prospects . 457
Boomer Mine Explosion . 463
Central Pennsylvania Status . 404
Market Reports.
General Review and Chicago . 458
Pittsburgh, Indianapolis and Twin Cities . 459
Cincinnati, St. Louis and Detroit . 460
Cleveland, Duluth and Birmingham . 461
New York . 462
New England and Baltimore . 463
Buffalo and Denver . 464
Hocking Valley . 15
AvoMing Suspensions.
W'e are approaching another period
when a contract between the operators’ as¬
sociations and the miners’ union will have
to be made. With that conies the pos¬
sibility, and, indeed, the probability that
we shall have a suspension of the mines.
With that comes the suggestion that we
shall have either to store coal to tide over
the period of suspension or business will
have to stop until the miners and oper¬
ators compose their differences. Today
we are, in consequence, hearing the same
old suggestion that some way ought to
he found to reach an agreement without
these costly suspensions.
The reasons advanced in favor of no
suspension are quite sound and can be
e.x])ressed tersely;
First, the storage coal is ])ut in liy those
who have no contracts at an increased
price of fifty cents to $1.00 a ton. This
increased price is not paid to the oper¬
ators, as a rule, but to some jobber or
scalner. The profits do not go to the
mining business but to the middle-man.
Still, the operator pays the price because
the consumer, having appropriated so
much money for fuel, and having paid an
excess amount for his storage coal, wants
to and does cut down the price of his
regular supply.
THE BLACK DIAMOND.
Second, those who get coal on contract
take it at the time when production costs
are highest and when transportation is
most difficult. This results in imposing
on the operator at one period and in rob¬
bing the mining company at another. In
a word, the mines are compelled to do —
and to be equipped to do — in January,
February, and March, the business which
ordinarily they would do in the first five
months of the year.
Third, coal put into storage is not satis¬
factory, as a rule, for the reason that ex¬
tra handling makes extra degradation.
Fourth, the need to create storage piles
in the first few months of a strike year
compels the operators to over-develop
their productive capacity.
Fifth, the high prices paid prior to the
strike, give a false impression of the
profitableness of the coal business and in¬
vite new competition for the mines.
Sixth, abnormally high prices in Febru¬
ary and March are always followed by
abnormally low prices in April and May,
if the -inticipated strike does not occur.
Thus everything is against and nothing
is in favor of a suspension of the mines
every time the wage contract is to be re¬
newed. The all important question is:
How are we going to avoid the suspen¬
sion? It will not do for the consumers
to refuse to store any coal because that
endangers them without changing the
situation. It will not do for the operators
to fail to develop their mines to take care
of this storage demand, because that
would simply invite competition to come
in and supply it. It will not do to rely
upon the miners to be decent, and, there¬
fore, not to strike because that is an ef¬
fort to control an uneducated element in
human nature which is a hopeless proposi¬
tion.
It occurs to us that the thing to do is
to change the character of the contracts.
To change the time in which contracts are
made would serve no purpose because we
would have the same old proposition over
again except at a different period of the
year. But we can change the character
of the contracts and the length of time
that thev are supposed to run.
In this connection we recommend to the
operators and to the miners' the adoption
of some such a system as is employed by
the railroads .in dealing with the locomo¬
tive engineers. To do this we must get
away from the theory that the coal miner
can automatically get an increase in wages
every two years or every year. We must
adopt the other theory, namely, that since
the prcjiminaries have been worked out
by these frequent conferences, coal mining
is worth so much money and it continues
to be worth that much money until the
general coal trade conditions are radically
changed.
In a word we believe that coal labor
contracts should lie indeterminate.
The World Opens.
American coal buyers are facing an in¬
teresting and a puzzling situation in the
increasing demand for coal abroad. There
is at the minute, enough data on the for¬
eign demand to indicate this much:
France, up to the opening of the war, had
a consumption of 60,000,000 tons of coal
per year, and a production of only 40,-
000,000 tons. There has been a deficit,
[December 4
therefore, of something like 20,000,000
tons yearly, which has been made good
to the extent of 10,000,000 tons by ship¬
ments from England and to the extent of
another 10,000,000 tons from Belgium and
Germany. America did a fragmentary
business only along the southern border.
The war, with its prospect of changed
relations hereafter, changes the situation
completely. It will be quite a while be¬
fore Belgium can produce any coal. It
will be impossible for Germany to sell
any coal to France for years to come. It
is a grave question whether England is
going to be able to produce the amount of.
coal which France is going to require.
The only available other market is in the
United States.
France, however, is in no mood to take
miscellaneous offerings from America. It
has a somewhat spoiled notion of what
coal quality is. It has been buying the
best of the English product and its own
coal has been by no means of an inferior
quality. Because its supply has been of
a high order, France has never studied
combustion very much, and is not dis¬
posed to do so now. Therefore, France
will make a demand upon us for the very
best grades of our coal, and preferably
those which run below twenty-five per
cent in volatile matter.
But, the French situation is not the
only one which commands the attention
of our coal producers. Spain is in the
market for something like 3,000,000 tons
of coal per year, and is looking in this
direction to get its supply. Spain, there¬
fore, is a very likely customer for the
American product and may ^ven provide
the ships to carry it. However, Spain is
going also to want our coal of best qual¬
ity, which means our coal running less
than twenty-five per cent in volatile mat¬
ter.
It is possible to expand this situation,
but only to find the same thing pertain¬
ing to the demand along the Mediterra¬
nean and in Central and South America.
The world market as a matter of fact is
open for our coal, but that same market
is very much inclined to take not a mis¬
cellaneous assortment of coals but the
best we have.
The situation at home is about as fol¬
lows. This low volatile coal has, for va¬
rious and obvious reasons, been the one
which American buyers wanted. Cities,
for e.xample, insist upon smokeless com¬
bustion. Furnace owners are inclined to
follow the line of least resistance and
therefore to buy a coal which burns
smokelessly. America as a consequence,
has been hanging fervently upon the
mines which supply this low volatile and
high grade coal.
However resourceful the mines which
produce this coal may be, they are not
by any means omnipotent. They can¬
not, in a word, supply all the rest of the
world and take care of a steadily grow¬
ing demand at home. That can’t be done,
first, because the section is limited and,
second, because the transportation devel¬
opments are limited. Therefore, *A.merica
must make choice of two things. It must
abandon, in a sense, its foreign trade,
which the operators will not do, or the
consumers at home must learn to use a
coal higher in volatile matter, or learn to
manufacture a fuel product which is
lower in volatile matter.
No. 23]
THE BLACK DIAMOND.
455
Making Coal History.
Those of us who are so intimately as¬
sociated with it every day may not real¬
ize the fact but it is true that we are pass¬
ing through one of the most interesting
epochs in the coal business. We are mak¬
ing coal history perhaps far faster than
most of us realize.
The present epoch finds expression in
two things. The first one is a tremendous
efifort to simplify the selling mechanism.
First there is the effort to extend our
sales abroad and therefore to lengthen
and broaden our market zone. Second,
we are trying to reduce the number of
times coal must be sold between the time
it leaves the mine and the time it gets to
the ultimate consumer. Efforts in that
direction are particularly worth studying.
However, the biggest expression of this
era is the formation of various kinds of
coal associations. There never was a
time when so many organized efforts in
the coal trade were under way at one
time. This is the most interesting move¬
ment that has ever been undertaken by
business as a whole or by any one indus¬
try. This can be called, in the last analy¬
ses, nothing more nor less than an effort
to control the human nature in business.
We may give the effort itself a great
many high sounding names such as a co¬
operative movement, a live and let live
proposition, a movement for the “good
of the order,” or an association move¬
ment. But, whatever the title, it all re¬
solves itself back to an effort to control
the human nature in business.
That, if any one inquires and seems
anxious to know, is quite a sizeable
undertaking. It is an endeavor not only
to control self-interest and to educate it
to be enlightened self-interest, but it is
an effort to bring under common control
also the primary instinct of human nature
which is self-preservation.
We are right in the middle of this in¬
teresting epoch now and it is no time to
write the conclusions of the whole thing
nor is it time to draw any lessons from
the success or failure of the efifort. It
will, however, prove interesting to the
coal men to look around and observe the
actions of human nature under the cir¬
cumstances. In the end, we may know
whether it is going to be possible to make
such a Utopian thing an abiding force in
such a perfectly selfish undertaking as a
business movement.
Just a Suggestion.
Labor in the coal mines is scarce. Be¬
fore the winter is over it will be much
more so. The demand for labor will next
spring be in excess of the supply. That
will make the working man independent,
in a sense. Consider that fact alongside
two others.
First, we cannot get a new supply of
mine workers from abroad as we have
done in other years.
Second, for the first time in six years
the agreements of the anthracite and the
bituminous workers expire at once. The
unions therefore have a tremendous
leverage.
Will the miners next spring force the
advantage given first by a shortage of
labor and second by the fact of two agree¬
ments expiring at one time? Will we.
therefore, have a big labor dispute on our
hands?
Under the circumstances, what is the
part of wisdom for the coal buyer — to let
his need for coal run until the last min¬
ute and hope to get enough to carry him
through or to satisfy that need now when
coal is to be had?
Causes of Business Distress.
The Bureau of Business Research of
Harvard University has just issued a re¬
port on its investigation into the cost of
doing business in retail groceries and meat
markets. It shows that the gross profit
ranges between a minimum of fourteen
and six-tenths per cent and a maximum of
twenty-seven and nine-tenths per cent.
The report says :
“Within this range the bulk of the fig¬
ures are between eighteen and twenty-
three per cent. The most common or
typical figure is twenty-one per cent.”
That is, according to this report, the
average “mark-uj)” of the retail grocery
business is about twenty-one per cent.
This, it must be remembered, is twenty-
one per cent on the business done and not
so much on the capital invested.
By way of contrast, it is frequently
shown by retail coal men that the average
“mark-up” on retail coal is three and one-
half to four per cent on the volume of
business done.
The Harvard re])ort goes on to say that
regardless of the large “mark-up” the
average retailer does business at practi¬
cally no profit or at a net loss to him when
his salary and interest on the money in¬
vested in his business are considered. In
the retail coal business, a similar report
would show that almost precisely the same
thing is true. That is, regardless of the
“mark-up” the retailer is doing business
without profit or at an actual net loss.
A great many articles and editorials are
almost sure to be written on this subject,
and from a great many points of view.
Perhaps the preponderance of opinion will
l)e that this showing condemns the com¬
petitive system under which business is
laboring. There is no doubt that the com¬
petitive system, when carried to the ex¬
treme, is economically unsound and in a
sense vicious. At the same time this, in
our opinion, is not the point particularly
in this report of the Harvard Bureau.
The real point is that regardless of our
elaborate experience, we have not profited
by learning to distribute more cheaply.
In a word, we are still tyros on the subject
of distribution and selling. We are doing
things today because we are accustomed
to doing them that way rather than be¬
cause they are the right things to do.
The point, as we have said before, is
that we are a producing and not a mer¬
chandising people. If it cost us as much
to produce as it does to sell, the whole
nation woyld be scandalized because that
would go against our producing sense.
We are not following precedent in pro¬
duction ; we are constantly making new
precedent. That is why we cut produc¬
tion costs.
However, we continue to sell in the
same old way, because we have not made
a cult of cheap selling. Therefore, in
selling, we are doing things not because
they are right, but because that is the
way they have been done from the be¬
ginning. A new era is dawning and with
it will come careful and close study of
better ways to sell and distribute. The
first requisite is to destroy the notion
that there is any divinity in our selling
methods.
Tariff Commission League.
We endorse, unequivocally, the move¬
ment for the revision of the tariff by a
commission, rather than by the dominant
party in Congress. We endorse, as neces¬
sary to the success of that movement, the
Tariff Commission League.
There are four reasons why we en¬
dorse the idea of tariff revision by com¬
mission :
First, the tariff is an intricate economic
subject. It is designed, first, as a fiscal
instrument of the Government because it
is depended upon to give the nation a
good part of its revenue. It is an econ¬
omic subject because duties imposed on
imports almost automatically fix the pos¬
sible minimum selling price of commodi¬
ties behind the tariff wall. Flowing from
that is a whole social and economic sys¬
tem which, in the end, influences every
phase of our life. The subject is entirely
too intricate to be understood by the laity ;
it is entirely too complex to be under¬
stood even by the majority of members
of Congress. In a word, it is a subject
which requires expert treatment.
Second, we have lived under a protective
tariff system for more than fifty years.
The country has become acclimated to it.
We cannot change over from a high tariff
to a low tariff, and become acclimated to
the new condition in such a short period
as four years.
Third, sober thinking people of America
have come to believe in neither a very high
tariff' nor in free trade. They want the
medium somewhere between. However,
under partisan political control, we must
have either a very high tariff, or free
trade. Therefore the wish of the people
is defeated when the subject is in politics.
Fourth, to leave this question to the
decision of the electorate presupposes not
only a very high order of intelligence on
the part of the people generally, but an
educational system and a public press cap¬
able of giving the people information with¬
out bias. We have neither a good educa¬
tional system nor an unbiased press.
Therefore the people have no fair infor¬
mation, and, therefore, they cannot be in¬
telligent on this question.
For these reasons we endorse the ef¬
forts of the Tariff Commission League.
Some persons connected with that league
are not the kind of men and women who
command universal respect. Others are
of a high order and are respected because
their views are sound. Regardless of per¬
sonnel, we endorse the league on the the¬
ory that every movement must have a
head. When a thing has to be done, even
a bad head is better than none at all. By
this we do not say that the league is made
up of those who cannot decide properly.
On the contrary, we believe it is as good a
board as could be gotten together in Amer¬
ica. Seeing the need for a head for this
movement and seeing that the majority of
its members are sound and command re¬
spect, we endorse the league as the leader
of the movement even as we endorse the
movement on account of its inherent merit.
456
News Local to Chicago.
Henry !•'. Patrick visited St. Paul and Min¬
neapolis this week.
W. \\'. Chapman, ])rcsident of the North
West Coal & Supply Compan3^ Minneapolis,
passed through Chicago this week on his way
home after visiting the Kentuckj' coal fields.
A. R Stone of Alhia, Iowa, while in Chi¬
cago this week said the consumption of Illi¬
nois coal in the Hawkeye state was growing
rapidly and 1<)15 figures should show a sui)-
stantial increase over the previous 3'ear.
James P. Danson of Great Falls, Montana,
was in Chicago for a few days this week. He
is meeting with great success putting Great
Falls coal on the market and expects his
operation will run to capacity all winter.
Harne3’ Cavanaugh, father of the late Joseph
Cavanaugh, died December 2d in a Milwau¬
kee hospital. Mr. Cavanaugh was a conductor
on the Northwestern Railroad for a score of
years atid was known personally by a great
man3' of the Chicago coal trade.
It is estimated that the failure of boats to
take the smokeless lump and egg coal to the
northwest from the lower lake ports diverted
to the Chicago market something upwards of
25, DUO tons of this free coal. Some students
of the market estimate th.at it will take abo'it
three weeks to clean up this accumulation.
The Kantishna Club will hold its second
informal dinner Tuesday evening, December
7th at the Auditorium Hotel. Charles M.
Moderwell, president of the Illinois Coal O])-
erators’ Association, principal speaker of the
evening, will address on “Friendship in Busi¬
ness.” Arthur G. Taylor, sales efficiency ex¬
pert, is also on the program.
A meeting of the coal operators of Indiana
was held at the Auditorium Annex on Mon¬
day of this week. The principal matter up
for discussion was the freight rate situation
and especially the recent proposal of the
various lines to the Interstate Commerce
Commission that the rate to Chicago shall he
advanced five cents a ton. It is altogether
likely that a formal protest against this in¬
crease in rates will be made by those opera¬
tors.
A sidelight on the Chicago market within
the last week came out of the effort of two
or three sales agencies who had anthracite up
to demurrage and tried to find a place for it.
All told, the demurrage coal was upwards ot
200 cars according to various reports. In
order to stop the payment of demurrage and
therefore to find a lodgement for this coal
the selling agent allowed the retailer to take
it in if he would pay the freight and then
pay the operating company for the coal after
it had been sold.
Two reports have been around Chicago
within the last week concerning the new Rob¬
erts oven. One is that the experiment with
this oven at Chattanooga has convinced the
coke people that this device cannot only coke
coal in fourteen hours, but it can handle some
of the western product. Accordingly, so the
report runs, a battery of ovens has been or¬
dered erected at Granite City near St. Louis,
the intention being to carbonize Franklin
county coal. Another battery of the same
ovens will be erected at Canal Dover, Ohio.
The announcement was made on Friday of
this week hy some of the operators in the Smoke¬
less coal field that the new schedule of prices on
lump, egg and nut will hereafter be as follows :
Lum|) and e.gg in hopper cars, $1.85: lump and
egg in flat bottom cars, $2.00 ; nut in hopper cars,
$1.(11); nut in flat bottom cars, $1.75. This is the
first time that any coal company has ever named
a differential in the price on the same size to
cover the kind of ecpiipment in which the coal is
moved. The shortage of flat hottom cars has in¬
duced some of the operators to suggest that if the
retailer specifies that sort of equipment, he should
pay a higher figure for the coal.
'Phe Interstate Commerce Commission has
just decided the Chicago switching reparation
case. In this, Thos. VV. Gilmore & Co., et ah,
were plaintiffs and the Chicago & North¬
western Railwa3% et ah, were defendants. The
commission thus summarizes its decision;
“Upon presentation of the issue whether or
not complainants have been damaged and are
entitled to reparation because of the payment
of charges on carload shipments of coal.
Held: 1. That complainants in Gilmore &
Cp. V. C. & N, W. Ry. Co. and in Hinners
THE BLACK DIAMOND.
Co. V. N. & W. Ry. Co. have not proven that
they were damaged by the payment of charges
which were found to be unjustly discrimina-
tor3'. In a discrimination case the measure
of damage is not the difference between the
two rates, but is a fact that must be proven
with the same definiteness as would warrant
a judgment in a court ot law. 2. That com¬
plainants in Lill & Co. v. C., M. it St. P. Ry.
Co. have been damaged and are entitled to
reparation to the extent of ten cents per ton
on certain shipments and five cents per ton
on others because of charges which were
found to be unreasonable. No damage proven
on that part of the charges which was found
to be unjustly discriminatory.”
Col. T. N. Mordue of Castner, Curran &
Bullitt says that times such as these develop
the morality or the lack of it among the Chi¬
cago retailers. As proof of it he recited a
conversation which recently took place be¬
tween one salesman who tries to dispose of
smokeless coal and one retailer. They had
a contract calling for the delivery of five cars
of smokeless mine run a week. He notified
the salesman to discontinue shipments. He
said in doing so “I want to be very candid
with you. I am not shutting off shipments
because I don’t need the coal, but because I
can now get plenty of lump and egg at mine
run prices. 1 want that lump and egg to im¬
prove the size in my mine-rune pile.” The
salesman inquired casually “What becomes
of your contract?” “Oh,” said the retailer,
“a contract is worth nothing and means noth¬
ing except that I commit myself to bu3' coal
from you so long as 1 please to do so and so
long as the price is right. A contract in fact
is not worth the paper on which it is w^ritten.”
The point of this anecdote is that the retailer
in question w'as one of the so-called substan¬
tial concerns doing a retail business in Chi¬
cago.
Some of the Chicago operators who are
working to avoid a suspension of the mines
on the first of April next have recently been
in touch with John P. White, president of
the United Mine Workers of America. Mr.
White has replied in general terms. He says
that it is the policy of the Miners’ Union to
have the men work during the. continuance of
negotiations for a new w'age scale. He be¬
lieves that the same polic3^ will prevail this
next spring. He believes also that the miners
will follow the union program. This seemed
quite encouraging until the fact was brought
out that while Mr. White was president of
the union he cannot commit it to any such
policy without a referendum of the union and
no such proposal has l)een put up for a refer¬
endum vote. Therefore what he says is
merely a meaningless statement of what
amounts to an amiable intention. There is
nothing concrete about it and therefore the
consumers of coal are not warranted in ac¬
cepting that as the last word on the subject.
Therefore some railroads are already storing
coal and others, so their officials say, are
getting ready to bu3' coal for storage pur¬
poses.
N. H. Kendall, commissioner of the Chicago
Coal Merchants Association, made the fol¬
lowing announcement on Tuesday: “A very
interesting meeting, in connection with the
W'ork being done by the cost and system com¬
mittee, will take place in this office, 1004,
No. 417 South Dearborn street, Friday, De¬
cember 3d, at 2 o’clock p. m. The subject, at
this meeting, will be the consideration of a
report to be made by the committee on retail
sales and accounting. The committee finds
that it is impossible to confine its report
strictly to the cost of selling. In their meet¬
ing held the 26th inst., it was demonstrated
that all of the items going to make up the
entire cost of doing business must be con¬
sidered. They have a large amount of very
interesting data, and have secured Mr. Shep¬
ard, of the accounting firm of Shepard &
Hutchison, who will be present to assist in
the discussion and answer an3'^ questions put
to him pertaining to accounting. The costs
and systems committee is endeavoring to se¬
cure all data possible on the subject, and they
are very anxious that members reply to the
following questions: 1. Do you take a trial
balance monthly? 2. Is 3'our bookkeeper a
man or a woman? 3. Are you interested m
a uniform method of figuring costs? 4. Do
3'ou handle material other than fuel? 5. Have
you any cost system which you are willing to
give the committee? 6. Please give us a list
of expense items you include when figuring
your cost of doing business."
[December 4
Anthracite Developments.
I he ?(Iadeira-Hill Company will strip a large
vein of coal west of Mahanoy Plane. At that
place there is a large mass of coal which was not
heretofore accessible until a recent ruling of the
court in the injunction proceeding of the P. & R.
vs. Lawrence Company. The court has decided
that the coal can be removed under a certain
guarantee. The C. K, Shipp Co. of Wilkes-Barre
have several locomotives, steam shovels and dump
wagons on the grounds and work will be started
immediately.
The Lehigh & Wilkes-Barre Coal Company will
strip about 1,200,000 cubic yards near their oper¬
ation at Audenried. The contract has been
awarded to .Arthur E. Dick, a well known con¬
tractor of Hazleton. Mr. Dick is at the present
time stripping the No. 1 East Extension stripping
between Audenried and McAdoo.
Control of the Diamond Water Company of
Hazleton has been secured by the Lehigh Valley
Coal Company, according to the Hazleton Sen¬
tinel. The sale is stated to have been prompted
by the desire to have the Diamond Addition ade¬
quately supplied with water. Under existing con¬
ditions, there are but five or six feet of water re¬
maining in its main dams, despite a particularly
rainy season this year.
Small Activities.
The Maryland Coal & Coke Company, with
headquarters at Philadelphia, announce that its
New England business, which has heretofore been
handled through the Boston office, will, in the
future, be taken care of through the New York
office. .Also, effective November 1st, Mr. Geor.ge
E. Dunn, formerly New England agent at Boston,
was appointed manager of the New York office, at
No. 17 Battery place. Mr. William S. Johnson
will be his assistant, and will be given the title
of assistant manager of New York office. On or
about March 1st, 1916, this company’s office at
Boston will be discontinued.
The eastern bituminous market had struck an
active gait on Tuesday, buyers, it appearing, be¬
coming more eager for coal than they have been
in some time. Prices for most any grade of coal
in Central Pennsylvania were not lower than $1.50
per ton at mines, with good and choice grades
sellin.g up to $1.65 and $1.75. Western Maryland
coals were selling in some instances up to $1.50.
Not only were buyers seeking New York dealers
for coal, local offices being plentifully supplied
with out-of-town visitors, which gave a tinge of
optimism to the local trade. Operators in the
regions are said to be very bullish on prices, due
largely to the fact that middlemen are visiting
them daily now trying to secure coal, and that
their advances as to values advance as buyers be¬
come more eager for prompt tonnage.
The harbor boat situation is a trying one these
days, especially for the transportation company
that has contracts at a low price, and has to go
into the market to get bottoms. The heavy de¬
mand for boats of any kind for handling muni¬
tions and merchandise from the railway piers to
vessels in stream or at docks that can only be
reached by water transfer, is so very heavy that
prices that some months ago would have been
declared to be beyond all reason, are now being
paid for almost anything that will float. Where in
the good old summer time a 300-ton boat could
be secured for $3 per day, four times that amount
will not secure one today. In fact, it is hard to
find a free boat now at any price, and the retail
coal dealer who has not protected himself, either
by ownership or control of harbor boats or by
time charters, is having his troubles.
Some of the coal men who find coal cars on
demurrage after a certain number of days, if they
are not unloaded when they arrive at destination,
were very much astonished during the past week
to learn, due to the congestion of loaded freight
cars in the territory of New York City, that no
demurrage was being charged shippers on a lot
of munitions, steel and other products that was
shipped to New A’ork for export. Some cars
are said to have been held for six weeks or two
months, according to reports, and as a result, the
railroads announced that the free time for unload¬
ing would be cut from thirty to fifteen days. Coal
goes on demurrage on some lines in twelve days,
and fifteen days is the maximum on an3' of the
eastern lines. On Saturday of last week it was
estimated that there were 16,006 loaded freight
cars in the vicinity of New York containing
products for export. So great was the conges¬
tion that several of the lines declared embargoes
until the congestion is cleared up,
No. 23]
THE BLACK DIAMOND
457
Facts Which Determine Our Export Prospects.
The Export Situation.
Shortage of vessels has brought about a very
material decline in exports from all the seaboard
ports. For instance, last week Baltimore only
exported two cargoes, both of these aggregating
just a little over 1,100 tons. One went to Cuba
and the other to Honduras.
Hampton Roads is showin.g up better, but the
shortage of vessels there is more serious than
at any time since last spring. Coal is plentiful
there, but prices are firm.
Bunker business is good at all of the upper
ports. The decline in demand has been most
heavy at the Hampton Roads ports, due to the
shortage of vessels calling for cargo lots.
That steamers heading for the United States
are starting out from originating ports with very
little coal in their bunkers, is indicated by the
fact that early in the week the following vessels
have put into Bermuda for bunker coal : British
steamer Indrawadi, from China and Japan for
Boston; Spanish steamer Mar Caspio, from Pal-
amas for Baltimore; British steamer Eriner, from
Genoa for Hampton Roads ; British steamer
Strathard, from Havre for New York; British
steamer Silvercedar, from Bordeaux for New
York; Norwegian steamer Loch Tay, from Rot¬
terdam for* New York.
The Swedish railways are said to be in the
market for 300,000 tons of “doubled screened”
coal, transportation to be arranged later.
Coastwise schooners are being diverted from
domestic trade by fancy rates for export. There
were several fixtures this week of large schooners
for South America.
A new collier of 5, .500 tons capacity, recently
launched for a coal company, has been placed
under charter for a trip to Archangel at $30,000
per month. She will take a general car.go.
Other coastwise coal carrying steamers are
being diverted to the off-shore trade due to fancy
rates, being paid for grain and merchandise.
Conditions in Ecuador.
The American consul general at Guayaquil,
Ecuador, writes The Black Diamond under date
of October 14, on the coal situation there as fol¬
lows :
“The war has had no appreciable effect on
the consumption of coal in Ecuador, as its use
is limited to the Guayaquil & Quito Railway,
and Compania de Alumbrado, the coal used in
the government war vessels being purchased from
the above.
“The price paid for the last shipment of coal
received by G. & Q. Ry. Co., was $2.75 per ton
in Philadelphia.
“Welsh coal is not imported into Ecuador.
“Conditons for discharging have not been al¬
tered, the gas company coal being discharged at
their own wharf, and that of the railway com¬
pany on lighters.
“All coal is imported from Australia or the
United States, the quantity remaining about the
same year after year.”
September Exports and Nine Months.
Exports of coal from the United States for
September and comparisons for nine months, is
shown by the Department of Commerce and
Labor to be as follows ;
English Coal Exports.
Exports of coal, coke and manufactured fuel
from the United Kingdom during October and
the first first ten completed months of 1913, 1914
and 1915;
Country — 1013. 1914. 1915.
Russia . 7.10,112 19,107 2,890
Sweden . .503,803 525,357 183,147
Norway . 200,079 197,813 195,514
Denmark . 281,369 313,873 185,511
(lermany . 835,839 .
Netherlands . 107,299 108,851 171,094
Belgium . 181,591 82,148 .
France . 1,077,519 1,000,000 1,002,300
Spain and Canaries . 328,971 200,708 107,923
Portugal, Azores & Madeira . 94,748 05,434 84,009
Italy . 910,513 705,340 559,534
Austria-Hungary . 103,433 .
Creece . . 84,033 20,032 10,804
Rournania . 47,804 .
Turkey . 01,728 12,009 .
Algeria . 108,422 31,890 00,889
Portuguese West Africa.. 10,908 4,100 0.114
Chile . 35,310 10,382 385
Brazil . 147,943 71,590 22,274
Uruguay . 33,102 40,043 18.173
Argentine Republic . 297,148 173,008 38,553
Channel Islands . 14,720 12,317 8,924
Gibraltar . 25.311 15,110 20,744
Malta . 42,008 13,193 l:!,e06
Egypt (including Anglo-
Egyptit.n Sudan) . 229,100 167,770 74,353
Aden and dependencies... 20,881 10,907 1 476
British India . 14,210 12,523 715
Ceylon . 23,704 16,834 .
Other countries . 101,103 95,122 53,056
Total anthracite . 281,443 154,855 313,259
Total steam . 4,9.52,04.3 2,939,525 2,370,c91
Total gas . 1,026,497 038,971 621,707
Total household . 159,373 136,297 63,451
Total other sorts . 319,517 74,849 155,178
0,739,473 3,944,497 3,530,540
Coke . 150,955 150,879 113,499
Manufactured fuel . 169,500 56,005 127,024
7,059,928 4,151,381 3,771,069
TOTALS FIRST TEN MONTHS.
1913. 1914. 1915.
■Anthracite . 2,470,034 1,990,021 1,834,116
Steam . 44,708,116 37,588,990 20,371,294
Gas . 9,010,209 8,964,721 6,275,072
Household . 1,495,200 1,244,893 927,486
Other sorts . 2,972,796 2,272,221 1.536,190
61,257,261 52,060,846 36,944,758
Coke . 989,010 975,204 798,188
Manufactured fuel . 1,711,865 1,487,953 1,087,000
Grand total . 63,958,136 54,523,993 38,830,606
Note. — The figures in the above table do not include
admiralty and certain other shipments.
Foreign Freight Rates.
W. W. Baltic & Co., Produce Exchange, New
York, report as follows under date of November
20: Nineteen shillings per quarter (which is about
eighty-nine shillings per ton ) has been paid on
grain to the west coast of Italy and Mediter¬
ranean rates are firm and advancing.
South American rates are practically the same
as a week ago while rates to the West Indies are
firmer.
We have chartered a few steamers for export
coal since our last report but none of these fix¬
tures have been reported.
The only way in which coal chartering can
be arranged is by shippers getting orders firm
in hand, so that they are in position to make
firm offers, and although tonnage is more than
scarce, occasionally steamers can be obtained if
shippers can pay market rates. In some in¬
stances we have been obliged to charter steamers
on time charters, as we could not arrange charters
for shipper.s on a satisfactory rate basis.
We would quote freight rates on coal by
steamer as follows :
We-st coast of Italy, ahcut 90s; Marseilles, 85s to 90s;
Barcelona or other good .Spanish i orts, 80s to 85s (Span¬
ish dues for account of cargo).
Note — Charters for Italy, France and Spain read:
“Lay days to commence on steamer’s arrival at or off
port of discharge; Is per net register ton per day de¬
murrage.”
Montevideo about 50s, 50P discharge; Buenos Aires
or La Plata, about 50s, 500 discharge; Rosario, about
55s; Rio de Janeiro, 45s to 47s 6d, 500 discharge; San¬
tos, 47s fid to 50s. (Consignees paying docas dues.)
Valpara-so or Callao, $11.00 to $12.00; Havana, $2.75
to $3.25; Cardenas or Sagua, $3.00 to $3.50; Cienfuegos,
$3.25 to $3.75; Port of Spain, Trinidad, $4.25 to $4.50;
.St. Lucia, $4.00 to $4.50; St. Thomas, $3.75 to $4.00;
Barbados, $4.25 to $4.50; Kingston, $3.75 to $4.00;
Curacao, about $4.00 and p. c. ; .Santiigo, $3.50 to $4.00;
Guantanamo, $3.50 to $4.00; Demerara, $6.00 to $7.00;
Bermuda, $3.50 to $4.00; Vera Cruz, $5.00 to $6.00;
Tampico, $5.00 to $6.00.
Recent Coal Freight Charters.
Str. Eurasis (Ital.), Philadelphia to west coast of Italy,
private terms.
Schr. R. B. White, Newport News to Cardenas, private
terms.
Barr Joseph (Itab), Philadelphia to west coast of Italy,
owners’ account.
Str. New Orleans, Philadelphia to Cienfuegos, private
terms.
Ship Edward Sewall, Virginia port to Rio Janeiro,
coal, $8.50. “December-January.”
Bark Snowden, Virginia port to Buenos Aires, coal, $9.
Schr. Waltham, Baltimore to Cay Francis, coal, pri¬
vate terms.
Schrs. E. R. Winslow, Ruth E. Merrill and Single-
ton Palmer, Hampton Roads to Rio Janeiro, coal, $8.25.
Previously.
Str. George E. Warren, Philadelphia to Cienfuegos,
3,700 tons coal; back to north of Hatteras, sugar, pri¬
vate terms. “Prompt.”
Str. Thelma (Nor.), Philadelphia to Sagua, coal; thence
north of Hatteras, sugar, and back to C'ienfuegos, coal,
private terms. “Prompt.”
Schr. Eleanor F. Bartram, Philadelphia to Buenos
Aires, 1,600 tons coal, $9.
Greek Coal Trade.
The American consul general at Athens, Greece,
writes The Black Diamond under date of Octo¬
ber 22, as follows ;
“Coal consumption has fallen off from thirty
per cent to forty per cent on account of the
practical stoppage of much of the normal traffic.
“From one viewpoint, business has improved
for the immediate vicinity, as an enormous
amount of supplies of all kinds have gone into
Serbia and other Balkan states through Greece,
much of this lieing transshipped at Piraeus — the
Port of Athens — on its way into the Balkans via
Saloniki. For the last month, however, business
has been to a larger extent practically at a
stand, owin.g to the Grecian mobilization and the
uncertainty of what will be the country’s role
in the conflict.
“Very little .American coal has been disposed
of in the Grecian market, largely on account of
almost prohibitive freight rates; some .American
coal of the Pocahontas type was brought into
Greece last April and sold at fifty-four shillings
(.$13. ,50) per ton. The buyers, however, seem to
prefer the larger lump Welsh coal and are willing
to pay as a rule as much as four shillings more
for it than for a similar .grade American coal.
“On October 1st, of this year, Welsh coal No.
2 Admiralty was quoted at sixty shillings ($15)
c. i. f. Piraeus, 1 am informed, however, that the
price has within the last few days risen to sev¬
enty-two shillings ($18) and more.
“English companies allow, so local buyers state,
a credit of from two to three months, so when
the existing preference for Welsh coal is taken
into consideration together with the almost pro¬
hibitive freight rates which obtain between the
United States and Greece, it will be seen that
the obstacles! to be overcome before American
coal can be profitably sold in Greece, are many
and serious. At present English coal ships un¬
load at the rate of 500 tons per day, the normal
rate is 750 tons daily, but as a number of li.ghters
have been liorrowed by the Allies, for service
elsewhere, the local facilities are somewhat im¬
paired. In normal times eighty-five per cent of
coal sold in Greece comes from British mines,
perhaps ten per cent is from Westphalian mines,
while the remainder comes from miscellaneous
sources.”
The imports of coal and coke into Italy during
the first six months of this year showed the
heavy decline of 1,285,3(50 tons, being 4,110,110
tons, as against 5,404,470 tons in the first half
of 1914, and 5,295,147 tons in the first half of
1913. The total value declined to nearly as great
an extent, this year’s imports being valued at
5,084,360 pounds, as against 7,458,160 pounds in
the 1914 period and 7,307,320 pounds, in the
first half of 1913.
- - September - \/ - - Nine Months Enc'ing September -
- 1014 - - 1915 - - 191.1 - - 1014 - ^ f - ^1915-
Quantity.
Value.
Quantity.
Value.
Quantity.
Vjliie.
Ou.intity.
Value.
Quantity.
Value.
Anthracite . . . .
395,088 $2,091,296
289,790 $1,512,573
3,173,002
16.750,031
3,002,057
10,031 ,297
2,594,754
13,40.3,508
Exported to-
Canada .
369,213
2,003,947
276,583
1,448,383
3,119,522
16,501,586
.3,017,158
15,807,511
2,538,305
13,201,555
134
955
2.469
15.153
6
46
6
46
2,415
9,518
Uruguay .
'605
3,367
Other countries
i 5,869
27,303
13,073
63,2.35
5.1,480
235,045
44,893
223,740
50,960
23.3,915
‘Bituminous.
1,857,520 $4,570,005
1,832,977 $4,674,423 13,793,963 $34,777,105
10,902,780 $20,779,590
12,421,560 $32,317,930
Exported to-
Italy .
324,925
980,033
2,348,870
0,972,044
Canada .
1,202,930
2, .581,801
944,800
2,025,305
10,283,998
24,820,230
7,241,856
15,815,947
5,082,455
12,104,488
Panama .
23,160
02,549
59,969
105,622
387,582
1,048,753
214,131
576,185
389,419
1,069,138
Mexico .
42,312
163,529
21,787
93,052
397,753
1,142,285
257,380
980,522
238,033
1,083,173
Cuba .
97,787
277,418
100.269
315,796
983,392
2,0.57,947
79.3,898
2,210,6.30
848,805
2,349,370
Other West In-
dies and Ber-
muda .
04,099
193,201
4 4,835
139,528
464,645
1,342,747
479,923
1,428,000
353,440
1,093,344
Argentina .
55,567
174,377
56,305
167,080
55,877
1 56,:?90
193,780
583,737
719,019
2,109,014
Hrazil .
45,846
145,092
61,223
178,48,3
211,045
674,780
201,071
647,800
644,194
1,031,382
Uruguay .
4,929
14,787
4,275
12,184
5,163
11,992
01,443
182,213
135,005
.395,492
Other countries
, 320,884
957,251
205,589
597,335
1.004, .508
2,912,909
1,459,292
4,347,890
1,107,200
3,450,791
Total coal . .
2,252,603 $6, '■>61,301 2,122,767 $6,186,990 16,966,905
$51,533,730 13,901,837 $42,810,887
15,010,314 $45,781,444
C'Dke .
28,510
109,490
59,395
232,229
662,863
2,479,281
485,171
1,810,.507
573,084
2,205,057
*The above figures do not include fuel or ljunker coal lailer on vessels engaged in tlie foreign trade, which
agg“egntefl during the month and nine months ending Septemoer vS follows: September. 1911. 67.3,372 tons, valued
at $2,221,61.5; September, 1915, 651,788 tons, valued at $2,lf4,705: nine months ending September, 1913, 5,763,584
tons, valued at $18,709,694; 1914, .5,711,948 tons, valued at $18,911,185; 1915, 5,678,815 tons, valued at $19,100,942.
458
THE BLACK DIAMOND
[December 4
General Review.
Chicago Market.
The Scarcity of Ships and Cars Interferes
With the. Coal Movement and Prices
Are a Little Easier.
The Volume of Business Is Fair, But
Production Is Too Heavy for
Stable Prices.
It seems difficult, if not almost impossible, for
the coal trade to .get away from a reaction in the
coal business in the early part of December.
In other years this reaction has been easy to
explain on the score that retailers and others
had bought so much coal in the preceding three
months, they did not have any need for coal or
any storage space left in which to put it.
This year there is a customary lull in Decem¬
ber without any such apparent explanation. The
record shows for example that the movement to
retailers has been below normal every month
since the first of last April.
The fact of the matter seems to be that three
things are combinin.g to make the trade a little
soft just now regardless of heavy demands in
other directions. The most important one of
these is of course the endiag of the season of
navigation on the great lakes the first of De¬
cember. It is true that hull and cargo insur¬
ance does not expire until midnight of December
12th this year and therefore coal shipments could
continue until that time. However, there is such
a demand for boats in the down bound grain trade
that coal men cannot get boats -without paying
a premium. This they are not disposed to do
in view of the publication of lake figures re¬
cently, which show that to Duluth and Superior
there was an increase in tonnage of about one-
half million with the assumption that shipments
to other directions have also increased.
The two other instances are of a similar char¬
acter. That is to sav. the movement of coal
to New England could be much heavier than
it is now if the operators and New England job¬
bers could get ships for coastwise trade. A third,
which is a distinct disappointment is the inabil¬
ity of the operators to get ships to engage in
what would be a much larger volurne of export
trade if transportation could be provided.
With lar.ge shipments thus shut off in three im¬
portant directions the all-rail trade has been asked
to absorb a very much larger supply of coal than
was anticipated. In the east this is not partic¬
ularly bothersome because the car supply con¬
tinues to be tight there. On the west bound move¬
ment of eastern coal and on all the movement
of western coal the car supply is easy. This
fact in the western trade has been responsible
for some disturbance in the market. For ex¬
ample, a free car supply released from the lake
trade has allowed the reconsignment into the
western territory of quite a lot of coal destined
to move bv the lakes but not finding boats. This
softened the market on smokeless. In finding a
market for this surplus the operators disturbed
western conditions materially.
The .general business situation may be said to
be improving steadily. For a time the steel mills
were quoting billets at $65 a ton. This is fully
too per cent above the price customarily pre¬
vailing when the steel trade is in a boom
period. It was feared for a while that this would
serve as an embargo on improvement in general
business because it would make the price of
finished steel entirely too high for anyone to
use it in ordinary business. However it de¬
veloped that fancy prices were bein.g quoted main¬
ly on the speculative phases of the steel business
and the mills are holding in reserve a certain
portion of their productive capacity to satisfy
legitimate home demands. Assurances of this
kind which have a most encouraging effect on
business. On these various accounts the demand
for steam coal everywhere is much stronger than
it has been for several years. An indication of
this is the price of slack in the eastern territory
and the price of screenings in the west. In the
eastern districts slack is bringing in anywhere
from sixty-five to ninety cents a ton according to
quality and in the west screenings are quoted all
the way from seventy to eighty-five cents a ton.
In some places, particularly in the Pittsburgh
district and in portions of West Virginia the
mines are sold up on mine run coal and have
withdrawn from the market.
It is a little too early yet to begin to measure
the storage movement of coal which is expected
to take place as a result of threatened suspension
of the mines at the wage contract period on the
first of April. Even so, the first storage move¬
ment is under way ; some of the lar.ger railroads
are beginning to store coal in modest amounts
and the public Utilities companies are doing the
same things.
Office of The Black Diamond,
Chicago, December 2.
One or two incidents gave the Chicago market
an impression of weakness not altogether war¬
ranted by the status of demand. At the same
time it is apparent that the available productive
capacity is bein.g worked harder than even the
rather lively demand warrants.
The first of the incidents in question was a
flooding of this market with smokeless lump and
egg coal. It seems that three or four companies
had attempted to ship coal by the lakes. There
were some temporary interruptions, of no great
importance, in the transportation movement. How¬
ever the interruptions were long enough to de¬
cide the boat owners that they would not wait for
the low-freight coal car.go, but would hurry back
to the head of the lakes to take advantage of
the high freight rates in grain. Thus several
cargoes of smokeless lump and eg.g were left
marooned on the lower lake docks and had to
he disposed of in some way. It was impossible
to get other boats and so this coal was diverted
by all-rail to Chicago which is notorious as the
dumping ground for such stray lots of coal.
The second incident arose from the fact that
one selling agent was a little too sanguine about
the immediate future of the Chicago market. He
not only permitted his supply of anthracite to
come on uninterruptedly but speculated a little
and brought into this market Upwards of 150
cars of various sizes which for quite a while
were up to demurrage and had to be moved at
some concession in price.
These two things, coupled with the fact that
the car supply remains annoyiagly free, gave rath¬
er an easy tone to prices all week although the
careful observers of the market realize that con¬
ditions fundamentally are sound.
The Franklin county situation seemed to bb
both strong and weak. The point of view of
the commentator determines which is the case.
For example, the operators, on shipments direct
from the mines, especially into the country dis¬
tricts, are holding firmly for circular price of
$1.75 on lump, egg, and number one nut. On
the other hand, there has been a considerable
accumulation of unsold and unbilled coal at the
mines. And, it has been a known fact for the
last two weeks that three producing companies
have been filteriixg coal through Chicago whole¬
sale concerns at such prices that the Chicago
jobber can make a handsome profit and still under¬
sell the producers of coal in the outlying dis¬
tricts. Indeed where the operator has been
holding for $1.75, some Chicago jobbers have been
offering their product to their customers at $1.50.
The latter part of the week presented indica¬
tions that this situation is being cleaned up. Mean¬
while screenings prices are somewhat stroager
than heretofore quoted. Prices up to Thursday
were :
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut . '.
Mine run .
2-inch screenings . .
F. O. B.
Chicago.
$2.80
2.86
2.80
2.15 @12.20
1.80@1.85
F. O. B.
Mines.
$1.76
1.75
1.76
1.50
1.10(31.15
.75@ .80
Williamson county operators have been con¬
ducting their affairs well, within the last week,
with the result that there is not much of a
spread in price between top and bottom figures.
For example the circular price has been variable
on lump, egg, and number one washed at $1.75
from the larger companies, and $1.60 from the
smaller ones. The latter in places have cut
prices to $1.50, but the market has not been very
badly demoralized.
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county coal has not been as strong as it
mi.ght be because the operators have been per¬
suaded to increase production ahead of the time
when there was a clear demand for the output.
In the effort to market the coal thus produced,
prices in places have broken to $1.50, although
the screenings remain firm.
F. p. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.65@2.80 $1.60(31.75
Mine run . 2.20 1.15
Screenings . 1.80@1.85 .75(g .80
154-inch lump . 2.35 1.30
Central Illinois coal has shown a degree of firm¬
ness due to the fact that a couple of good sized
producers are out of the market and due to the
further fact that the railroads are taking on some
coal for storage purposes.
F. O. B. F. O. B.
Central Illinois—
Lump .
Egg .
Nut .
Mine run .
Screenings .
Chicago.
$2.57
2.32@2.47
2.47
1.87
1.47(31.52
Mines.
$1.75
1.50@1.65
1.65
1.05
.65@ .70
Clinton, Indiana, coal shows very little change
in either demand or prices within the last week.
The best demand, of course, is for steam sizes
produced from the mines in the number five
and six veins. Prices Up to Thursday were:
F. O. B. F. O. B.
Clinton —
Chicago.
Mines.
No. 4 domestic lump....
$1.65(31.75
No. 4 egg .
. 2.12
1.35
Nut .
1.85
No. 6 and 6 mine run . . ,
1.10
No. 5 and 6 screenings. .
. 1.57
.80
The strengthening of
Knox county
screenings
has been the feature
of
that market
within the
last week. Prices on
domestic sizes are nominal.
The market up to Thursday was :
F. O. B.
F. O. B.
Knox County —
Chicago.
Mines.
Lump .
$1.50
Egg .
1.60
Mine run .
1.05
Screenings .
. 1.62(31.72
.75(3 .35
The anthracite situation has been up in spots
and down in other places. Cold weather has
brought a better demand for anthracite coal be¬
cause the retailers have been making small sales
and hence have needed more coal. At the same
time some few of the selling agencies allowed
shipments to come forward too freely with the
result that prices have been shaded in order to
avoid the payment of demurra.ge charges.
The congestion of the smokeless market by
the unwarranted shipments of lump and egg
coal has disturbed both the market on prepared
sizes and that on mine run. For a good part of
the week, lump and egg have been sold at mine
run prices of $1.40 and dealers who had con¬
tracts for mine run coal have cancelled them in
order to get the lump and e.gg to improve the
quality of their mine rUn. This threw a lot of
mine run coal back into the market which had
to be disposed of at a cut in price. Sales were
made freely at $1.25 and some few instances are
reported where sales as low as $1.15 were ac¬
cepted. The prices up to Thursday were :
F. O. B. F. O. B. ^
Smokeless — Chicago. Mines. *
Mine rur. . $3.30@3.45 $1.25@1.40
Lump and egg . 3.45@3.95 1.40@1.90
Somerset county operators are having a good
demand in the east and having to shade prices
if they wish to make sales in Chicago have re¬
fused to ship their coal here in any quantity and
thus the market has been firm at the following
prices :
F. O. B. F. O. B.
Somerset County — Chicago. Mines.
Mine rui . $3.30@3.45 $1.25@1.40
Lump and egg . 3.70(33.80 1.65@1.75
Hocking coal has been only fair in demand and
the operators have prevented a break in price by
keepin.g the coal off the market. The situation
for that reason is fairly firm.
F. p. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.25 @3.40 $1.60 @1.75
Splint coal continues to be a fairly strong fac¬
tor in the market largely because shipments have
been curtailed owing to a shortage of cars at
the mines and a better demand in the east.
Prices up to Thursday were :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
1^-inch lump . $3.40@3.50 $1.50@1.60
At few times has eastern Kentucky coal been
sold at a greater spread in prices. Lump and
block combined of average quality has been sell¬
ing all the way from $1.65 to $2.00, while the
better known coal has been sellin.g at $2.40. The
market up to Thursday was :
F. O. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.55@4.30 $1.65@2.40
Egg . 3.40@3.90 1.50(32.00
The coke market is practically unchanged in
every department except that the demand for the
domestic sizes is not quite so keen. By-product
coke is having to meet in the retail trade the
competition of cheap coals of other sorts and
the price has eased. The prices up to Thursday
were :
F. O. B.
Coke — Chicago.
Connellsville . $5.25(35.50
By-product, foundry . 5.25@6.50
By-product, egg and stove . 4.75@4.95
By-product, nut . 4.75@4.95
Gas house . 4.00
No. 23]
THE BLACK DIAMOND
459
Pittsburgh Trade.
Prices Vary According to the Condition
of the Individual Order Book — Cars
and Labor Are Scarce.
Office of The Black Diamond,
1502 Oliver Building,
PiTTSBURCH, Pa., December 1, 1915.
Conditions in the Pittsburgh coal market
continue to become more and more complex
— some operators claim prices to be harden¬
ing, all along the line, while others see soft
spots. Quotations representing the general
range of prices for standard grades of coal,
under the circumstances, are difficult to name,
some producers quoting much higher figures
than others, for relatively the same deliveries.
These differences probably are largely due to
the condition of individual order books or ca¬
pacity for deliveries at the time. Many are
practically out of the market.
The car and labor situation does not seem
to improve — and this has a tendency to keep
prices hard. And, while no large tonnage
inquiry is reported, contract deliveries con¬
tinue at the maximum, and colder weather has
increased domestic demand to the extent that
operators seem to have about all they can do
to meet it.
Higher prices, and over-sold conditions at
the iron and steel mills in this district, with
continued advances in sight, seem to indicate
a further hardening of price for not only pig
iron, as shown by the market, but also of coal
and coke, and the general belief is that these
conditions are going to maintain for months
to come. Many plants in this district that
have long been idle have been put into opera¬
tion, and mills going at top capacity, are in¬
creasing the same to meet the situation.
Slack seems in stronger demand than ever,
prices ranging from eighty-five cents to nine¬
ty-five cents, and we hear of one order placed
for December deliveries at $1.00. Report has
it that Bethlehem Steel is making inquiry this
week for 200 tons mine run coal per day, and
though several are quoting on this, quotations
are being carefully guarded, and no figures
are obtainable. Mine run coal is quoted for
spot delivery all the way from $1.20 to $1.35 —
mines, by various parties — three-quarter at
from $1.35 to $1.40, and five-quarter coal at
$1.50 to $1.60 — the closing of lake shipping
apparently showing no bad effect as yet.
The general situation can be said to be very
quiet and devoid of event of note. Purchas¬
ing agents from out of the district, as well
as prospectors, have been scarce in the mar¬
ket for some weeks past, and probably will
be until after April 1st conditions develop,
and the time for the renewal of coal contracts
arrives. There has been little activity in coal
lands for some months — investors awaiting
the outcome of both foreign and domestic
matters of moment.
The coke market while still a little soft,
is strong, the Connellsville region doing just
about all it can do, to-wit, about 430,000 tons.
This might be considered normal capacity
though under perfect working conditions it
would turn out 450,000 but this condition is
seldom maintained. Prices hold fairly firm
at $2.25 to $2.35 for prompt furnace coke,
with ten cents to fifteen cents advance on
these figures for the first half, while foundry
maintains its stand at $3.00 to $3.25.
The Youngstown Sheet and Tube Company
has closed a contract for sufficient coke to
operate its blast furnaces from January 1st
to March 31 of next year, when the new by¬
product plant is expected to be placed in
operation. The tonnage bought at this time
is 225,000. The price was not announced.
The Corrigan-McKinney Company are also
reported covered until spring, expecting their
new by-product ovens to be in operation by
that time. Many think that by-product pro¬
duction will seriously effect the Connellsville
coke trade, but it is also said that numbers of
plants in that district have exhausted their
coal resources, and that it will take the by¬
product output to make good this exhaustion,
and will in nowise hurt the interests that are
producing. Heating coke demand is increas¬
ing with the colder weather, and is bringing
$2.15 to $2.25, with higher prices quoted for
late December deliveries.
Pittsburgh News Items.
The best coal shipments for any one month
since October, 1913, are reported for October
of this year by Lockmaster George W. Pax¬
ton at Lock No. 4. The shipments during
October of this year totaled 19,819,000. The
record of October, 1913, was 19,933,000 bush¬
els. This in turn was the best record of any
one month since June of 1910.
The Bird Hill Coal Company will make
extensive improvements to its mines at Kelso,
Pa. The improvements, on which work was
started this week, will increase the daily out¬
put from 500 tons to between 1,000 and 1,500
tons. The present force of 160 men will be
increased to 400. Instead of only operating
one seam, the C Prine, the Bird Coal Com¬
pany intends taking out the B seam of coal.
To do this, a new opening is necessary.
Ground was broken this week for a new slope
and a shaft.
The following delegates were appointed
yesterday by the Pittsburgh Coal Exchange
to attend the twelfth annual convention of
the National Rivers and Harbors Congress to
be held at the New Willard Hotel in Wash¬
ington, D. C., December 8th and 9th and 10:
William B. Rodgers, W. K. Field, J. A. Don¬
aldson, S. C. Gailey, W. Harry Brown, A. B.
Shepherd, C. C. Bunton, A. H. Stolzenbach,
.Arthur Moren, James Moren, James G. Gee-
gan, J. H. Rodgers, P. M. Pfeil, George Mc-
Davison, W. P. Fieger, W. T. Smoot, John W.
Hubbard, Warren Elsejq John C. Neff, George
W. Thomas, J. Frank Tilley, T. M. Rees and
C. C. Ramsey.
West Virginia bituminous coal will cost
fifteen cents more a ton in Michigan, Illinois,
Wisconsin, Minnesota, and nearby states,
than in Chicago, or points in Ohio if the In¬
terstate Commerce Commission approves an
application of the Kanawha & Michigan and
associated railroads. Manufacturers and oth¬
ers using bunker coal in the southeastern
states likewise will pay ten cents more a ton,
should the proposed rates contained in the
application become effective. The roads have
applied to be allowed these increases to the
territories named, as a means of ending the
controversy that has become acute between
the West Virginia coal operators and rail¬
roads on the one hand, and the Western
Pennsylvania coal operators and railroads
serving that territory on the other. Tariffs on
the Baltimore & Ohio have been filed, effective
December 15, providing for a fifteen cent in¬
crease in rates and by the Pennsylvania rail¬
road, effective December 20, making similar
advances.
Indianapolis Trade.
Indianapolis, Ind., December 2. — (Special Cor¬
respondence.) — The coal trade in Indiana is better
than it has been for a long time. In fact, the
operators and dealers agree for once that it is
quite satisfactory. The pessimism marking the
situation for the past year has vanished. The
reason, of course, is the very good demand for
steam grades. The mines are being operated right
up to the limit, except in a few instances.
The demand for domestic coal has not increased
much over what it was a few weeks ago, as the
weather has favored the consumers, but the de¬
mand for steam coal is booming. One operator
said today that the railroads are stocking coal.
They are taking a great deal of inch and a quarter
steam lump and are putting it away for winter
use. The railroads have not been heavy buyers
in Indiana until within the last few days. One of
the interesting features of the situation is that
the trade between the Indiana mines and Chi¬
cago is not very brisk. The big demand for
steam coal is coming from the Indiana cities,
where there are plenty of factories, and from the
railroads.
The general trend of business throughout Indi¬
ana is for the better. This is especially true of
the industrial concerns. The wheels are begin¬
ning to turn in every city, with the result that the
demand for steam coal finally has picked up to a
point that is pleasing to the members of the trade.
There has been no serious car shortage as yet,
but the operators are being warned right along
by the railroad men to load their cars as rapidly
as possible. The consumers are being hurried by
the railroads, so that a car shortage may be avoid¬
ed. The indications are that prices will be ad¬
vanced within a short time. A car shortage and
cold weather, making the movement of coal diffi¬
cult, would boost the prices immediately, as the
supply of coal on hand is not very large.
Screenings are scarce. Dealers have been of¬
fering as high as ninety cents this week in the
open market. Best four-inch domestic coal has
advanced to $1.65 and $1.70 at the mines. Two
and a half-inch is selling around $1.50. The re¬
tailers report a very good business in hard coal,
with prices about the same as they have been for
the last month. The following prices are being
quoted by the wholesalers :
F. O. B. F. O. B.
Indiana — Mines. Indianapolis.
Mine run. No. 4 . $1.10@1.20
Mine run. Nos. 5 and 6 . 1.05@1.15
Nut . 1.20@1.30
Egg . 1.30@1.40
I!4-inch steam lump . 1.25@1.3.5
No. 4 screenings . 80@ .90
Nos. 5 and 6 screenings . 65@ .75
2!^-inch domestic No. 4 . 1.50@1.55
4-inch domestic, Nos. 4 and 6... 1.65@1.70
Brazil block domestic . 2.25@2.60
No. 1 washed coal . 1.75
No. 2 washed coal . 1.65
Southern Indiana Field —
Mine run . 1.05@1.10
Domestic lump . 1.40@1.50
$1.60@1.60
1.55@1.65
1.70@1.80
1.80@1.90
I.75@1.85
1.30@1.40
1.15@1.25
2.00@2.05
2.15@2.20
2.75@2.50
2.25
2.15
Twin Cities Trade.
. Minneapolis-St. Paul, Minn., December 2. —
(Special Correspondence.) — While the .tempera¬
tures are ranging from ten to thirty degrees
above, there has been practically an entire ab¬
sence of snow and wind, the result from the coal
man’s standpoint being three-fold — first, ideal
weather for railroading enabling the carriers to
move the immense tonnage thrust upon them with
little delay and comparatively no congestion ; sec¬
ond, as long as the farmers can work at home
they will not haul much coal, and, third, the city
dweller will not buy coal until he has to have it.
The demand for all grades of coal has kept up
remarkably well, and there is but little free coal
being offered. The dock companies report large
.shipments to interior points, and this may account
for the weakness of dock screenings in the Twin
Cities. All grades of dock steam coal are being
offered at from twenty to thirty cents off circular,
and it does not seem likely that the various inter¬
ests will be able to get together on a sane and
reasonable basis.
Buyers of Illinois steam coals are holding off
as long as possible in order to obtain the reduc¬
tion in freight rates which become effective the
15th instant. By that time the Illinois operators
will probably want fancy prices, with the result
that the rate reduction will not prove an unmixed
blessing, at least not at present.
Current market prices at wholesale on leading
grades of coal sold in the Twin Cities are as fol¬
lows :
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Crate . $6.60 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.06
Nut . 7.10 • 8.30
Pea . 5.60 6.70
Buckwheat . 4.00 6.20
BITUMINOUS.
Splint, screened lump and stove. $3.30@3. 40
Splint, dock run . 3.10
Hocking, screened lump and stove 3.30@3.40
Hocking, dock run . 3.00
Youghiogheny, gas, lump and stove 3.30@3.40
Youghioghenv, gas, dock run . 3.10
Pittsburgh vein, lump . 3.30@3.40
Pittsburgh vein, dock run . 3.00
Pocahontas, screened lump or egg 4.75
Pocahontas, screened lump and
egg mixed . 4.50
Pocahontas, mine run . 3.25
Cannel, lump . 5.25
-Smithing, bulk . 4.25
.Smithing, in 100 lb. sacks . 6.00
Briquets, anthracite . 5.00
Briquets, smokeless . 5.00
$4.26@4.36
4.06
4.26@4.36
8 96
4.26@4.36
4.06
4.26@4.3<
3.96
5.71
5.46
4.21
6.21
5.21
6.96
5.96
5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is as
follows :
Southern Illinois chunks . $1.65@1.75 $3.95@4.05
Southern Illinois egg . 1.65(®1.75 3.95(S4,06
Southern Illinois No. 1 nut . 1.65@1.75 3.95@4.05
Southern Illinois No. 2 nut . 1.40^1.50 3.70^3.80
Sjuthern Illinois run of mine.... 1.15@1.25 3.45^3.55
Southern Illinois run of mine... 1.15@1.25 3.45(®3.55
Southern Illinois 2-in. screenings. .70 4.00
Southern Illinois includes Franklin county,
Harrisburg and Williamson county.
Mark E. Wentworth, long identified with the
coal business in the northwest, has resigned his
position with W. P. Rend & Co. and will soon
leave for Hankinson, N. D., where he will enter
business for himself. Mr. Wentworth has long
enjoyed the friendship of buyers of Illinois coal,
who will all wish him well in his new undertak¬
ing.
460
THE BLACK DIAMOND
[December 4
Cincinnati Trade.
Cincinnati, Ohio, December 2. — {Special
Correspondence.) — Tlie wintry conditions
around the first of the month did not, at first,
stimulate the retail demand, excejit in small
cities and towns. But all dealers awakened
to a realization of what is likely and they
began at once the usual campaign to get in
their suiiplies. They ran up against what they
had been warned of — prior contracts and or¬
ders, car shortage, and labor handicap. In
conseciuencc they have been making life mis¬
erable for the operators, generally.
'J'he domestic situation is but little better,
from the viewpoint of the operator, than it
was last week, but the price problem is ad¬
justing itself. The steam demand has become
very strong and is steadily strengthening, un¬
til it has not only gone beyond the nut and
slack supply, but it has taken out of the mar¬
ket a large amount of run of mine. About
all the Kentucky operations, and a large num¬
ber of West Virginia splint operations have
withdrawn run of mine as a consec}uence.
The domestic sizes of the smokeless prod¬
uct are in that dull period generally charac¬
terized as “between seasons” and this means
that those who use this product, principally,
have stored their needs and the market must
wait until much of this is consumed.
In one field of the Kanawha district, four-
inch block commands $1.75, two-inch lump
$1.35 to $1.50, mine run (gas) $1 to $1.10, nut
and slack (splint) seventy-five to eighty-five
cents, nut and slack (gas) $1, mine run out of
the market with nut and slack held for con¬
tract. In another district gas run of mine
commands ninety-five cents to $1.10, the run
from No. 2 seam bringing ninety-five cents.
In the Mingo white ash district one section
quotes four-inch block at $2, egg at $1.50, nut,
$1.25, run of mine out of the market and nut
and slack seventy-five to eighty-five cents per
ton. In another section of the same white
ash district, a big company quotes four-inch
block at $1.85, egg $1.35 to $1.45, nut $1.25,
run of mine out of the market, and nut and
slack seventy-five cents, straight, when avail¬
able. These are early December quotations.
The Kentucky splint operators have had
rather a good time of it, most of the last two
months, and they are in good shape now, for
car service, orders and price. The only thing
bothering these operations, especially along
the L. & N. Railway, is labor. That is scarce.
Prices of four-inch block in the L. & N. re¬
gion of high grade splint are $2.10 to $2.25.
Egg is in good demand at $1.75 to $2. Nut
commands $1.75; nut and slack runs eighty to
ninety cents and run of mine is generally out
of the market. Nine-tenths of the production
of the Kentucky districts tributary to this
city are under contract or ordered up to De¬
cember 15, with orders pouring in for the
period after that and into January. The gen¬
eral run of Kentucky coals is from five to ten
cents under the prices quoted.
Since the middle of October furnace and
family coke has advanced from $2 to $2.25;
foundry coke is priced at $3 and $3.50 with a
tendency to tack on another dollar early in
the present month. P'urnace coke is scarce
and foundry is becoming tight.
Cincinnati Trade News.
E. H. Doyle, of the Middle West Coal Com¬
pany, returned this week from an extended
visit to Detroit and the northwest.
F. P. Forester of the Crozer-Pocahontas
Company, Chicago, was a visitor in Cincin¬
nati a day or two the latter part of last week.
Charles 1*'. Dunn, formerly coal salesman
for the Matthew Addy Company, but now in
business for himself in Detroit, was a visitor
in the city and called on old friends last week.
Harry Ileywood, representing the firm of
W. Gosline & Co., Toledo, was in the city
a few days ago. He reported all lines of the
coal industry improving in his territory, espe¬
cially smokeless.
“Bob” Field, formerly well known in coal,
coke, iron and steel circles, has taken a position
with the Matthew Addy Company of this city to
sell iron and steel. Mr. Field has been ill for
over two years but is recovering rapidly.
F. B. .Stewart of the Winifrede Coal Corn-
jiany spent the week in Philadelphia and New
York on business for the company, attending
a meeting of the board of directors of the
company in Philadelphia early in the week.
He will be at the mines early the coming
week.
It is learned here that Homer Fay, well
known in this territory, who has been trav¬
eling salesman for the Toledo Coal Sales
Company, has resigned from connection with
that company and will make a new connec¬
tion in the future. The company will place
a new man in the territory by the first of the
year.
St. Louis Trade.
St. Louis, Mo., December 2. — (Special Corre¬
spondence.) — Colder weather has helped the mar¬
ket considerably. All grades of domestic coal are
moving more freely than last week. Screenings
have also braced up a great deal and are very
stiff at the present time, both in demand and
price. The price on screenings has advanced
about fifteen cents during the past week, and it
would not be at all surprising to have them ad¬
vance ten cents more during the coming week.
No. 2 nut is also in strong demand. All of the
industries are running full time, and a number
are running overtime. This, with the railroad
movement improving, will probably cause a heavy
demand on all steam sizes for the balance of the
year. Prices on standard coal are as follows :
F. O. B.
Standard Coal — Mine.
fi-inch lump . $1.25
6x2-inch egg . 1.25
2-inch lump . 1.05
Steam egg . 90
*No. 1 nut. . . 1.15
No. 2 nut . 80
Mine run . 85
Screenings . 60
There is a better movement of lump
the Staunton and Springfield district to
and screenings are in heavy demand,
the whole remain about the same :
F. O. B.
Mine.
6-inch lump . $1.50
2-inch lump . 1.25
Screenings . 60
F. O. B.
St. Louis.
$1.82 54
1.8254
1.6254
1.4754
1.72 54
1.37 54
1.4254
1.1754
coal from
the north.
Prices on
F. O. B.
St. Louis.
$2.0754
1.8254
1.1754
The demand for Williamson county coal is fair
to the north, and also in St. Louis, but to the
south the demand has slacked off to some extent.
Screenings and fine coal are, of course, in heavy
demand at the present time ;
F. 9. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.40@1.75 $ 2.02 54 @2.4754
3x2-inch nut . 1.20@1.75 1.9254 @2.4754
Screenings . .65 1.3754
The first of the month brought quite a large
volume of orders to the Franklin county opera¬
tors for domestic sizes. Domestic sizes have been
in plentiful demand, consequently business is good
with the Franklin county operators ;
6-inch lump, egg or nut
No. 2 stove .
Screenings .
F. O. B. F. O. B.
Mine. St. Louis.
.$1.75 $2.4754
. 1.50 2.2254
. .70 1.42K’
The demand for anthracite is fair, though there
seems to be no great rush at the present time :
Anthracite — F. O. B. St. Louis.
Chestnut . $7.55
Stove or egg . 7.30
Grate . 7.05
Smokeless coal and coke are dull at the present
time :
F. 9. B. F. O. B.
Mine. St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . . $4.25
By-product coke (all sizes) . 5.00
The prices on Illinois soft coal. f. o. b. East St. Louis,
Madison, Venice or Granite City, Ill., are 20 cents lower
than the above quoted St. Louis prices.
Detroit Trade.
Detkoit, Mich., December 2. — (Sfyecial Corre¬
spondence.) — Except for handicaps in the matter
of transportation facilities, due to continuance of
the embargo raised November 16 by the Grand
Trunk railroad, the Detroit coal market shows
encouraging activity.
Buying of steam coal continues in good volume,
though the tonnage handled is not materially in¬
creased. The fact that orders are being booked
with a gratifying degree of regularity is one of
the satisfactory features. Small sizes are still
sought aher more eagerly than the larger ones,
and some of the shippers are finding the task of
supplying such coal is not altogether easy.
There is a more active demand for domestic
coal, although shippers assert there is still room
for much improvement in the market. Retail
yards are handling a large proportion of the
business, but are expected to come into the mar¬
ket in greater numbers for additional stock in
the near future.
The inconvenience that results from the em¬
bargo enforced by the Grand Trunk recalls to
some of the shippers the efforts that were made
early in the fall to induce consumers who had
storage space to make provision for just such an
emergency. With the second week of the em¬
bargo ending November 30, word went out that
the restriction on shipments will be continued a
few days longer. Representatives of the rail¬
road say the congested conditions which caused
the embargo are being relieved rapidly and that
normal movement of freight will be resumed
very soon. Some of the shippers, however, are
inclined to fear the restrictions will not be lifted
for some time to come.
Refusal of the Grand Trunk to accept cars from
other roads for delivery over its tracks has pro¬
duced an accumulation of cars on other railway
tracks in Detroit. It was estimated a few days
ago that more than 600 coal cars were awaiting
delivery to the Grand Trunk and that something
like 900 cars of coal were being held back on that
company’s tracks between Buffalo and Detroit.
While no serious shortage of supply in the sec¬
tion of Detroit served by the Grand Trunk was
reported, a number of retail dealers and some of
the consumers were saved from running short of
supply only by the delivery of cars that were
standing on the Grand Trunk tracks when the
embargo became effective.
With the supply somewhat curtailed by the
transportation conditions, there is a more active
demand for anthracite. Shipments are not com¬
ing into the city in very large volume and the
complaints about shortage of cars on eastern
lines continue.
Prices in the local market
on direct
shipment
orders are as follows ;
West Virginia Gas —
F. 0. B.
F. O. B.
Mines.
Detroit.
Three-quarter lump .
$1.00
$2.40
Mine run .
.90
2.30
Slack .
.75@ .90
3.15@3.40
West Virginia Splint —
Tour-inch lump .
2.90@3.15
Two-inch lump .
1.25@1.40
2.65@2.80
1 hree-quarter .
1.10
2.50
Mine-run .
.90
2.30
Nut, pea and slack .
.75@ .90
3.15®3.40
Smokeless —
Lump and egg .
2.25
3.85
Nut .
1.75
8.35
Slack .
Open
Open
Mine run .
1.40
3.00
Kentucky Splint —
Lump .
1.75@2.00
3.15@3.40
Egg .
1.25@1.40
3.65@2.80
Nut, pea and slack .
.75@ .90
2.15@2.30
Tairmont —
Three-quarter steam lump .
.85@ .95
2.25@2.35
Mine run .
.70® .80
2.10@2.20
Slack .
Open
Ooen
Hocking Valley —
Shaker three-inch lump .
1.75
2.90
Shaker egg and nut .
1.15
2.30
Domestic lump .
1.50
2.65
Three-quarter lump .
1.35
2.50
Mine run .
1.00@1.10
2.15@2.25
Nut, pea and slack .
Open
Open
Pittsburgh No. 8 —
Three-quarter lump .
1.05
2.20
Mine run .
.95
2.10
Slack .
Open
Open
Tdck.'^on Hill —
Domestic lump .
2.50
3.65
Cambridge —
1 hree-quarter lump .
1.20
2.35
Mine run .
1.10
2.25
Pomeroy —
1 wo and three-inch lump .
1.00
2.75
Egg .
1.35
2.50
Slack .
.75@ .90
1.90@2.C5
Detroit Local News.
Four lake freighters have been purchased with¬
in the last few days by James Paisley for the
Valley Camp Coal Company. The E. L. Wallace,
a steel ship of 7,200 tons capacity, was bought
from the Dearborn Transit Company, Dearborn,
Mich., for $240,000. The steamers Thomas Adams,
George L. Craig and Eugene Zimmerman were
bought from John Craig, former Toledo ship-
huilder, at a price reported as about $.530,000.
The Craig and Adams have capacity of about
5,000 tons and the Zimmerman capacity of about
8,700 tons.
I'uneral services took place in Bay City, IMich.,
Monday for Edgar B. Foss, one of the pioneer
coal mine operators of the Saginaw valley, who
was owner of the What Cheer mine near Bay
City, and of a mine of the same name near Flint,
Mich. Mr. Foss and Joseph Miksak, president
of the Pilsen Lumber Company, Chicago, were
killed November 26, when a Michigan Central
train backed into the automobile in which they
were riding at the Woodside avenue crossing.
Bay City, Mich. Mr. Foss was sixty-two years
old and had become a millionaire in the lumber
industry, operating a large mill in Bay City and
having extensive timber holdings in Michigan and
Canada.
No. 23]
THE BLACK DIAMOND
461
Cleveland Market.
Clevk[.ani>, Ohio, Dccenilier 3. — (Special Cor¬
respondence.) — With the exception of a few stor¬
age cargoes that may be loaded later the lake
business practically closed at the end of the
month. Although the Canadian embargo on
wheat may posibly make some difference in the
tonnage supply, it is believed now that it is too
late to make any difference in the lake situation
so far as it relates to coal. The a.ggregate ship¬
ments of coal would have been larger, without
doubt, had not the tonnage grown scarce through
the demand made by grain and ore shippers, but
at the same time the situation at upper lake points
is regarded as fairly satisfactory. The amount
of coal taken up is perhaps larger than expected,
as has been the case almost every season. Unless
there should be a continued period of exceedia?-
ly cold weather the supply will perhaps prove
sufficient.
Retailers are asking for spot shipment of an¬
thracite since the weather has grown somewhat
colder, but the producers are unable to meet this
demand. Egg and stove sizes are fairly plenti¬
ful, but deliveries on chestnut are about two
weeks behind.
The situation with regard to steam coals re¬
mains very much the same as it has been. There
has been some change in prices of slack, but
on the average the demand has not increased
to any extent. The colder weather, however, is
expected to result in somewhat more favorable
conditions within a short time.
Owin.g to the close of navigation No. 8 slack
has become somewhat scarce in the market, but
on the other hand run of mine is more plentiful.
Producers are seeking a market for the larger
sizes and until results are reached in this direc¬
tion, it is believed that slack will remain rather
stiff.
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-qu.irters . $1.0.5 @ 1.10 $1.95 @2.00
Run of mine . .90 1.80
Slack . .90 1.80
Producers of Coshocton coal state that there
has been no change in the market the past week
and that quotations for some weeks back hold
good at the present time :
F. O. B. F. O. B.
Coshocton — Mires. Cleveland.
'.nmp, 4-inch screened . $t.70@1.7.5 .$2.40@2.45
tK-inch . l.«0@1.6.S 2.30@2.:?.'>
Fgg and nut . 1.0;)®!. 10 1.75@1.80
The lake trade took quite a little Pittsburgh
slack, but with the end of the shipping season
it has become more plentiful in this market
and the price has weakened perceptibly :
F. O. B. F. O. B.
Pittsburgh — Mines. Cleveland.
•Slack . $0.7.1® .80 $1.75@1.80
Massillon operators are still behind in their
deliveries, but prices remain as they have been :
F. O. B. F. O. B.
Massillon — ■ Mines. Cleveland
I-ump . $2.50 $3.20
Nut . 2.50 3.20
Slack ...- . 1.05@1.10 1.75@1.80
The movement of smokeless coals has not been
especially active the past week in any of the sizes,
while run of mine has dropped five cents. Prices
quoted are as follows :
Smokeless — •
Lump .
Egg .
Run of mine
F. O. B. F. O. B.
Mines. Cleveland.
$1.90 $3.25
l.Tt) 3.20
1.25 2.70
The supply of Cambridge coal in the market
this week exceeded the demand, with a conse¬
quent weakness in the prices, althou.gh no actual
change is noted in the quotations :
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Three-quarters . $1.10 $2.00
Run of mine . 1.00 1.90
Slack . .90 1.80
Fairmont slack remains strong, with but little
in the market. Inquiries for it are frequent and
considerable could be handled if it were to be
had. It is still quoted as follows :
I'airmont — ■ Mines. Cleveland.
Slack . .... $1.90
While there has been quite a little Kentucky
coal on the market durin.g the past week, it has
moved at a fairly satisfactory rate :
Kentucky — Mines. Cleveland.
4-inch block . $1.90@2.00 $3.15®3.25
The supply of Youghiogheny coal increased
the past week, but the increased receipts are not
sufficient to affect the prices, which are as fol¬
lows :
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
154-inch . $1.40@1.50 $2.40@2.50
Three-quarters . 1.30 2.30
Run of mine . 1.20 2.20
Slack . 95@1.00 1.95@2.00
The movement of Bergholtz coal has shown
no change. .Some of the offices are behind in
deliveries. Quotations are the same as last week:
F. O. B. F. O. B.
Bergholtz — Mines. Cleveland.
6-inch lump . $ 1.70 $ 2.40
154-inch . 1.45 2.15
Three-quarters . 1.35 2.05
Lgg . 1.25 1.95
Run of mine . 1.20 1.90
Slack . 1.05@1.10 1.75@1.80
The movement of Wainri.ght coal remains
steady without change of price ;
F. O. B. F. O. B.
Gosher.'Wainwright Mines — ^Mines. Cleveland.
Three-quarter domestic
3-inch lump .
Lump .
Slack .
$1.40
$2.10
1.80
2.50
1.65
2.35
1.05
1.75
There was a fair supply of Goshen coal in
the market through the week, but no change from
last week’s quotations :
Goshen —
Three-quarters
lJ4-inch .
Run of mine.
Slack .
F. O. B. F. O. B.
Mines. Cleveland.
$1.30 $2.00
1.40 2.10
1.15 1.85
1.05 1.75
It is reported that Richland three-quarter coal
is coming into the market in plentiful lots and
is being quoted at $1.80 to $1.85 per ton.
Mr. Flannigan of the J. II. Hillman Coal Com¬
pany, Pittsburgh, was in the city Monday.
Duluth Trade.
Duluth, AIinn., December 2. — (Special Cor¬
respondence.) — That in the matter of both re¬
ceipts and shipments of coal, the seasons of
1915, up to the close of navigation, will be
far ahead of last year, is now patent; and as to
shipments, R. H. Salter, manager of the West¬
ern Weighing Association, having in charge
the checking of the outgo, says that this year
will smash all records. In fact it is ahead
of totals of former years now.
The close of the coal receiving season will
probably not end until along about December
15, unless the present fine sailing weather
suddenly changes. The marine insurance
rates continue until midnight of December 12,
and boats will likely leave lower lake ports
up to that time. That every effort is being
made to have a surplus stock of coal on hand
here in case of a strike next spring in the coal
mines is certain, for during the last month a
much greater spurt than usual has been made
in getting coal to this point. Boats have
been held up at different points along the lake
by storms, but up to today cargoes have been
coming in as fast as possible. With the close
of business on November 30, 135 coal cargoes
arrived during the month. The actual figures
of the amount received have not yet become
available, but it is considered that an average
of 8,000 tons per boat is conservative. That
would make the receipts during November
1,080,000 tons. The month a year ago brought
in 907,046 tons.
The total receipts up to the close of navi¬
gation last year amounted to 9,488,297 tons,
all kinds. The receipts to November 30, with
November estimated as mentioned, amount to
9,703,600, 214,403 tons more than last season,
with December still to hear from.
Business is exceptionally good, according
to superintendents of the various coal com¬
panies. Despite the fact that coal is coming
in fast these days, the piles on the various
docks are full of caverns and canyons, and
serious holes are being made in some grades.
Out-going cars of coal are helping the influx
of grain to double and treble the crews on
most of the railroads here. When the totals
are all in, Mr. Salter says, the biggest figures
of output in the history of this place as a
distribution point, will be shown.
Much has been printed about the failure of
the Northwestern dealers to grasp the sig¬
nificance of the probability of a coal strike
next spring; but coal men here say that so
far as anthracite coal is concerned, there is
a better supply than usual. The situation is
easy, they claim, except in the event of a
strike of long duration, which would, of
course, be embarrassing. It may be that the
indifference and apathj' charged generally
against the Northwestern dealers has infected
the coal men, but they do not seem to be
much stirred over the prospects.
It is claimed by some that a large part of
the excess coal receipts here is due to the
fact that the United States Steel corporation
has been bringing a large amount of coal up
the lakes all summer for use in its steel plant,
just opened here, and that the commercial
coal receipts are about the same as those cf
last year. The Steel corporation’s boats now
on their way up, arc expected to carry coal
for storage.
To Purchase Dock.
Negotiations are said to be going on which
may result in the transfer of the C. Reiss Coal
Company’s No. 4 dock at the foot of Thomp¬
son avenue in Superior, East end, to the Pitts¬
burgh & Ashland Coal Company, which is de¬
sirous of getting located at the head of the
lakes. The latter company now has docks at
Ashland.
The Reiss Company has No. 4 dock well
stocked now, and, it is said, the transfer will
not take place even if the negotiations are
successful, until after May 1, 1916, so that the
company may have time to dispose of the fuel
now stored there.
Dock No. 4 is owned by the Northern Pa¬
cific Railway Company, which built it many
years ago, soon after the road itself was built
into Superior. It has been operated under
leases for the greater part of the time since
then, and was controlled by the Pittsburgh
Coal Company before the Reiss Company
leased it. The latter company has spent a
large amount of money, in the neighborhood
of .$250,000, it is said, in extensions and im¬
provements to the dock and has greatly in¬
creased its capacity.
Birmingham Trade.
Birmingham, Ala., December 2. — (Special Cor¬
respondence.) — There is a larger production of
coal than has been noted for some time. iMost
of the larger mines, especially those of the iron-
rnaking companies, have been running on full
time, and many others are now running six days
per week.
Steam coal trade is holding up with good ton¬
nage, as railroads are now calling for delivery
upon contracts. A good movement is still in
progress down the Warrior river. Most of this
coal goes to New Orleans, where a large tonnage
was lost during the recent hurricane. A fairly
good tonnage is going to Mobile and Pensacola.
At the latter place the Gulf, Florida, Alabama
railroad is building a coal pier.
The cool weather prevailing over the south has
caused good business in domestic coal. The busi¬
ness vyith retailer is more satisfactory than it has
been in quite a while.
With nearly every iron furnace in the district
running at fullest capacity, the demand for coking
coal continues to be large. Orders for black¬
smith coal are scarce.
There is no end to the demand for coke. The
by-products coke ovens are working day and
’’’Sht. The New Castle coke ovens belonging to
Ramsay & McCormack are producing coke right
along with Banner coal,_ and the Sloss-Sheffield
bteel & Iron Company is getting a fairly good
supply. Coke ovens of the Tennessee Coal, Iron
& Railroad Company and the Yolande Coal
& Coke Comiiany in the Blue Creek region and
along the southern end of the Birmingham Min-
eral railroad (Louisville & Nashville) are pro¬
ducing a goodly quantity of coke also. The by¬
products coke oven plants of the W’oodward, the
Fennessee and the Semet-Solvay companies at
vV oodward, rairfield and Ensley are getting out a
large quantity of coke.
Bee-hive coke has advanced to $3.75 per ton
I here is no large stock on hand. Bv-product
coke ranges from $2.60 per ton.
Prices are quoted as follows:
Bibb County Domestic —
Red ash Cahaba lump .
Red ash Cahaba lump .
Red ash steam size .
Jefferson County —
Fancy steam Pratt .
Run of mine Pratt .
Mary Lee lump . . Q
Black Creek —
Fancy steam lump .
Washed nut .
Washt d steam
Mine run .
Jefferson Steam Coal —
Mine run .
Walker County Domestic
Carbon Hill lump .
Carbon Hill eg? .
Horse Creek mine run .
F. O. B. F. O. B.
Mines. Birmingham.
$3.00 $3.30
2.75 3.10
1.20@1.35 Frt. rate 30c
1.75 2.00
].20@1.25 1.45®1.50
1.40@1.60 1.80@1.90
1.75 2.05
1.75 2.05
1.35@1.60 Frt. rate 30c
1.25 @1.25 Frt. rate 3()c
. 1.15@1.25 Frt. rate 30c
Coal —
- 1.75 2.15
- 1.65 2.05
. 1.00@1.20 Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . 1.90 2.35
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 3.00 3.30
Cahaba No. 2 lump . 2.75 3 05
Montevallo domestic prices range from $3.00 to $3.25.
Blacksmith coal, lyashed and screened, per ton, $2.00 to
$2.25 .ii mines, with different rates to various points.
462
THE BLACK DIAMOND
[December 4
New York Trade.
The Anthracite Demand Is Brisk But
the Movement Is Very Slow — Strength
of Bituminous Coal Increases Daily.
Office of The Black Diamond,
New York, December 2d.
The anthracite trade is very active in all direc-
tions. This week finds weather more seasonable
and consumption growing very rapidly. While
consumption is expanding, distribution in every
direction is being delayed due to the lack of
cars, shortage and delay in schedulp of water
transportation and congestion of railroads with
miscellaneous freight, which brings about a very
material delay in most cases of anthracite cars.
The trade are now beginning to appreciate that
the early statements that were made to dealers
and to consumers to take on supplies during the
summer and fall months in anticipation of un¬
usual conditions, at this time, were most timely.
It is unfortunate that these appeals met with such
little response. We have now reached the real
winter season, with production of anthracite coal
nearly 3,000,000 tons behind the production of last
year for the same period, and with the consum¬
ing power greatly increased, due to the better
financial conditions now obtaining.
Last week, very serious car shortages were felt
at many of the anthracite operations, and when
the tonnage statements are made up showing
shipments for the past week the lack of cars
will unquestionably show a very material de¬
crease in shipments. Conditions as to production
and prompt delivery of anthracite from this time
on are now so very bad that shippers cannot with
any certainty make any definite promises for ship¬
ments over a considerable period. The railroads
on Tuesday estimated that there were 30,000 car¬
loads of freight held within 200 miles of New
York City awaiting discharge at the local ports,
and this spells “delay” for all classes of freight
and no one believes that coal is going to receive
any special precedence unless a famine should
ensue.
Prices are well held around the circular, with
steam coals at tidewater very active. Good grades
are very scarce, and there is very little of the
cheap coals obtainable at prices that are consid¬
ered low.
New York anthracite prices are:
Broken
Egg . . . ,
Stove . .
Chestnut
Pea ...
Upper
Lower
Ports.
Ports.
$5.10
$5.00
5.35
5.25
5.35
5.25
5.60
5.50
3.55
3.45
Special grades of red ash and other high-grade
coals at the lower ports sell at twenty-five to
fifty cents per ton over above figures.
Spot prices in individual coals at lower ports are
about as follows :
Egg . .
Stove
Nut . ,
Pea . .
Buck .
Rice .
Barley
$5.05 and up
5.20 and up
5.20 and up
3.25 and up
2.30 and up
2.00 and up
, 1.75 and up
The Bituminous Situation.
The bituminous situation continues tense. It is
tightening up in most every direction, with the
possible exception of the New River and Poca¬
hontas coals, where there has been some let up
due to the lack of vessels reporting at the tide¬
water ports for cargoes for export. This also
brings something of a lull in the demand for
bunker supplies at the lower ports, as the steam¬
ers that take cargoes for export usually take about
fifteen to twenty per cent of their cargo tonnage
for bunkers. Steamers for export loading have
also been very scarce for the past week at Balti¬
more, and tliis has enabled some of the large ex¬
porters through this port to devote more coal to
their domestic requirements, which are just now
very heavy.
While instances of sales of coal above $1.75
at the mines are rare, this week finds no few
Pennsylvania operators who have fixed this price
for their surplus coals. The great bulk of the
spot coal offering now is at $1.50 per ton at the
mines up. One of the New England railroads,
is reported to have purchased a block of coal
on Monday, paying $1.50 per ton. The heaviest
purchasers of spot coals at the moment are
the middle houses who have contracts and need
‘ tonnage to apply on them. These people are
hunting here and there for medium-priced coal,
and they are not finding much success in obtain¬
ing anything at prices that are in line with some
of the commitments made by them in the spring
and summer.
The car question is still responsible for light
f)uti)ut on the part of many of the operators.
Siqiply is below normal on practically all of the
eastern lines, and contractors are having great
difficulty in getting enough coal forward to sat¬
isfy their customers. In fact, many of them
are not able to ship anything like what their con¬
tracts call for ; while, on the other hand, con¬
sumers are trying to get enough coal forward to
create some surplus. As shipments become ir¬
regular, many consumers are digging deep into
storage piles that they had accumulated, antici¬
pating having a reserve in case of trouble later
in the winter. A shortage of coal before the
first of December was not deemed possible sev¬
eral months ago, so that the coal men who tried to
induce customers to take in heavy shipments dur¬
ing the early fall months were laughed at in
most instances. Customers accused them of try¬
ing to scare them into buying coal for which they
would have no need. A different story is being
heard every day now.
The coastwise vessel situation is not improving.
Some few boats can be obtained for coastwise
shipments, but shippers in most instances cannot
afford the rates asked. Schooners of sufficient
size to make a trans-Atlantic voyage, or to the
West Indies or South America, are being grabbed
for these trades, so that the supply for coastwise
trading are very few.
At the local piers the supply of coal is light.
Some few shippers' may every few days report
some surplus on hand, but usually it is for trans¬
shipment, and the boats are delayed in reporting
for it. It is hard to buy anything at any of the
piers under $3. From this sum up to $3.50 is
asked. Pennsylvania slack is offered at $1.25.
The Vessel Situation.
The coastwise vessel situation has not eased.
It is difficult to get boats at any price for car¬
goes from the Roads, Baltimore or Philadelphia to
New England. During the week some half-dozen
schooners have been fixed for export, which de¬
creases the supply for domestic business. Also,
some of the steamers formerly plying coastwise
have been diverted to other trades because of
fancy rates.
Off shore rates are still advancing, and coal ex¬
ports have slumped heavily because of lack of
vessels.
We quote current rates for freight as fol¬
lows :
From Hampton Roads to Boston, $1.20 to $1.40
is about the range ; to Portland and points east
of Boston, from $1.15 to $1.35. To sound points,
$1.00 to $1.25. From Philadelphia to New Eng¬
land points, about five cents under the Hampton
Roads rates.
From New York to sound points as follows:
Bridgeport, forty cents; New Haven, forty-five
cents; Providence, fifty cents; New Bedford, fifty-
five cents. To Boston, around cape, sixty to sev¬
enty cents ; through canal, seventy-five to eighty
cents. Harbor rates twenty to twenty-five cents.
Current quotations on bituminous coal in spot
lots are :
F. O. B.
F. O. B.
Somerset County —
Harbor.
Mines.
Best grades .
. $3.15
$1.65
Ordinary .
1.50
Medium grades .
. 2.95
1.45
Cambria County —
Best Miller vein .
. 3.25
1.75
Medium grades .
1.50
Cheaper grades . .
. 2.95
1.40
Clearfield County —
Best grade .
1.55
Ordinary grade .
1.45
Indiana County —
Best grade .
. . . 3.00
1.45
Medium grade .
. 2.95
1.40
Maryland —
Georges Creek big vein .
. 3.25
1.75
West Virginia —
Ordinary grades .
. 2.85
1.35
Best gas, 4^-inch lump .
Best grade, run of mine .
. 2.90
1.35
. 2.95
1.15
Gas slack .
1.00@1.25
New York Trade Briefs.
George W. Atkinson of the Merchants’ Coal
Company, Baltimore, was a recent visitor to New
York.
W'. P. Tams, Jr., of the Gulf Smokeless Coal
Company, Tams, W. Va., sailed on last Saturday
for a European trip.
O. M. Deyerle, vice-president and general man¬
ager of the Flat Top Fuel Company of Bluefield,
W. Va., was in New York on Wednesday.
D. F. Williams, assistant general coal agent of
the Hudson Coal Company, with Scranton head¬
quarters, was in New York on Wednesday.
F. R. Wadleigh, the well-known fuel engineer
with headquarters in Philadelphia, who has been
in Europe for the past two months, will arrive in
New York some time next week.
Some of the New England roads are said to
have bought coal this week, paying $1.50 per ton
at the mines, Pennsylvania, for grades that were
purchasable several months ago at $1 and $1.10.
On Wednesday, some of the New York bitu¬
minous people were predicting that the coming
week would see bituminous coal pretty gener¬
ally sold at $2 per ton, Pennsylvania mining fields.
Effective December 1st, Willard, Sutherland
& Co. succeed to the coal business formerly con¬
ducted at No. 8 Bridge street. New York, by Wil¬
lard Brothers and the Atlantic & Eastern Coal
Company.
C. E. Lester of Hartwell, Lester & Clitter, Inc.,
of No. 1 Broadway, New York, who went abroad
some three months ago, and who has visited the
principal European countries since, is now on his
way home, and is e.xpected to arrive some time
during the coming week.
Frank Ellison of the C. G. Blake Company,
Cincinnati, returned last week on the steamer
Touraine of the P'rench Line from a visit to
France and Italy, stopping over in New York with
Manager Steinkamp of the New York office for
several days before going west.
Harry K. Stauffer, who is associated with the
sales forces of B. Nicoll & Company, making
headquarters at Philadelphia, has recently recov¬
ered from an operation that was performed at
Elmira, N. Y., where he was convalescing in a
hospital for two months. Mr. Stauffer was in
New York several days this week, going to Phila¬
delphia for the holidays.
Newspaper dispatches from Scranton on
Wednesday told of the resignation of Col. Reese
A. Phillips, for thirteen years general manager
of the collieries of the Delaware, Lackawanna &
Western Coal Company. His resignation is due
to ill health. He started in the anthracite field
a great many years ago as breaker boy. His
successor has not been named.
The Van Ormer Coal & Coke Company, which
has its general offices at Boston, has moved its
headquarters to Altoona. The Van Ormer inter¬
ests have large operations at Van Ormer along
the Cresson and Clearfield branch of the Penn¬
sylvania railroad, the daily production of its mines
being about 1,000 tons. The Altoona offices will
be in charge of B. C. McDowell, who formerly
was in charge of the Brothers Valley operations
in Somerset county.
Marcy McD. Price of Berlin, Pa., and for many
years with the McNiver & Brothers Valley Coal
Company interests in New York, is named as one
of the incorporators of the Hartland Colliery
Company of Clay county. West Virginia, which
has just been granted a charter in that state, with
capital of $500,000. Incorporators are John B.
Hart, Edward Hart, W. S. Booth, all of Clarks¬
burg, W. Va. ; Marcy McD. Price of New York
and David Price of Johnstown, Pa.
C. W. Proctor of the Skeele Coal Company, No.
90 West street, returned on the steamer Finland
on last Thursday from a trip to Norway, Den¬
mark, Sweden and England. Mr. Proctor returned
to find the stork about three days ahead of him,
a fine girl being the result of the winged car¬
rier’s visit. While in London, he gave a fare¬
well dinner to the New York coal men who were
in London at that time, Messrs. W. B. McQueen
of Alden Coal Mining Company, McCormack of
Commercial Coal Company and Lester of Hart-
Well, Lester & Clitter, Inc., attending.
Some of the coal men who follow traffic mat¬
ters very closely and whose experiences have been
very varied, so far as transportation matters are
concerned, are inclined to the belief that coal,
notwithstanding the many mean things said
about it as a traffic commodity, is about the best
paying revenue that the railroads have after all.
Here is how one authority viewed the matter :
“Coal originates to the road without any solicita¬
tion. The shipper loads it and pays for its un¬
loading. The cars run promptly back to the mines.
On the other hand, much of the freight that is
now tying up cars in New York territory was
solicited by high-priced solicitors. They usually
turn in some expense accounts, too. Then we
get a glut at the ports where it has to be unloaded,
reloaded and handled several times, all at great
expense, before it finally reaches its resting place
on shipboard if intended for export. There is
but one movement of coal after it reaches the
tidewater ports. That is when it is dumped either
by machines or gravity piers, directly into the ves¬
sels. And then, coal moves regularly. It is a
month in and month out traffic, so that transpor¬
tation companies can move it with a minimum
of cost.”
No. 23]
THE BLACK DIAMOND
463
New England Trade
Boston, December 2. — {Special Correspond¬
ence.) — The wholesale anthracite and bituminous
dealers of New En.gland, and especially those
located at this centre, are even more optimistic
regardin.g the future than they were a week ago. At
that time a dealer could be found here and there
who was inclined to be a little dubious, but
today all signs of pessimism appear to have dis¬
appeared. The great question today is not so
much “demand” as it is “transportation facilities.”
'I'his question applies as much to anthracite as it
does to bituminous.
The congestion at terminal and junction points
has not been improved upon during the past
seven days, and there is nothing to indicate any
material improvement within the near future.
All-rail dealers are, for this reason, bound to
experience more or less delay in deliveries of
coal. High winds and seas have greatly inter¬
rupted water transportation. Some houses re¬
port practically no cargoes arriving during the
past ten days. Others have been fortunate enough
to get three or four barges through since last
reports. But every house is backward in de¬
liveries and a considerable November tonnage
was carried over into this month. If they should
not take another order within the next fort¬
night, a majority of houses could keep busy mak¬
ing deliveries of coal already ordered.
But instead of a decrease in business whole¬
salers report a better demand for bituminous.
Manufacturers and other large consumers seem
to have awakened to the fact that soft coal is
more apt to be higher before April 1 than it is
to be lower, and everybody appears anxious to
lay in a good supply. Appeals for deliveries of
old contract coals are keen and some consumers
are placing orders for more 1915-16 coal. At
Mystic Wharf the spot New River and Pocahon¬
tas market is largely a professional affair. That
is the buying is confined largely to among dealer.s
themselves. Owing to the fact that receipts have
been light these coals have recently changed hands
at $4.15 to $4.25 per ton on cars. About a
month ago New River and Pocahontas was a
drag on the Mystic Wharf market at $3.75. Deal¬
ers handling Georges Creek and like coals have
practically withdrawn from the market, and
prices for them are largely nominal. The f. o. b.
Hampton Roads market on southern coals is
reported as firmer at $2.85 per ton, notwithstand¬
ing the fact that supplies standing and running
to those ports are still far in excess of the
demand. The local bunkering market for New
River and Pocahontas is better, being $4.50 per
ton over the rail, as compared with $4.25 a week
or ten days ago. Pennsylvania bituminous is
higher at $1.25 to $1.75 per ton on cars at the
mines, and in some cases coal has brought as
high as $1.80. Local retail prices for bituminous
are higher, but not noticeably so.
The demand for anthracite, acording to a
majority of the wholesale firms, is all that could
be desired. Big company prices are very stroag,
but unchanged, but independents are asking and
getting premiums of fifteen to twenty-five cents
a ton and not guaranteeing deliveries. The de¬
mand for cargo lots of stove, nut and egg is espe¬
cially good, and the chances are there will not
be enough pea and buckwheat to go around dur¬
ing the balance of the year. Alongside Boston
Harbor prices are : Stove and egg, $5.85 ; mi^
$6.10 ; broken, $5.10 ; pea, $4.05 per ton. On
a basis of f. o. b. New York, No. 1 buckwheat is
$2.85; No. 2, $2.30; No. 3, $1.60, and bird’s eye,
$3.
The marine freight rate market is strong and
higher. From Hampton Roads ports to Boston
the general asking price for bituminous is $1.15
to $1.25 per ton. From Hampton Roads ports
to Sound ports rates average about ten cents
less than to Boston. The six-masted schooners
Ruth E. Merrill and Edward B. Winslow and the
five-master Singleton Palmer, three of the lar.gest
vessels engaged in carrying coal to Boston, have
been chartered at a very high rate to transport
coal from Chesapeake Bay ports to Rio Janeiro.
The boats will each receive $8.50 per ton. The
Winslow will carry 4,800 tons, the Merrill 4,500,
and the Palmer 3,800. Rates from New York
to Boston continue high, usually at ninety cents
per ton ; from New York to Providence seventy
cents; and from New York to Pawtucket eighty
cents. From New York to the Provinces rates
usually run from $1.25 to $1.40 per ton, and some¬
times as Ivgh as $1.50.
Boston Trade Notes.
The probabilities are the New River Company
will produce 175,000 tons of coal during Novem¬
ber. The net earnings for July, August and Sep¬
tember were $70,000. October broke about even.
The Wravin Coal Company of Boston, with a
capital of $25,000, was recently granted a Massa¬
chusetts charter. The incorporators of the com¬
pany are Joseph F. Ryan, Horatio C. Rohrman
and H. Wray Rohrman.
The net earnings of all companies for the
four months ended October 31, were $804,819;
for the same period last year they were $807,631.
The earnings of the coal department for the four
months were $379,219, as compared with $379,780.
• F. Sherman & Sons, Inc., of Poultney, dealers
in grain, coal and wood, have been granted a
Vermont charter. The capital of the company
is $10,000, and the incorporators are Henry F.
Sherman, Alice J. Sherman and Thankful S.
Mears, all of Poultney, Vt.
Rumor has it that the shares of the Virginian
Railway are to be listed on the Boston Curb
Exchange. The road is doiag a big business
hauling coal from the New River and Pocahontas
fields to Norfolk, Va., whence most of it is
shipped by water to Boston.
On her first trip from Louisburg, C. B., to
Boston, the new steamer Rose Castle under
charter to the Dominion Coal Company, brought
in 7,400 tons of coal. The boat’s capacity is
11,500 tons, and she is the largest vessel in the
employ of the Dominion company.
The local retail dealers have started their
annual solicitation campaign in the form of foy¬
ers to household consumers of anthracite. These
folders give reasons why the winter’s supply
of coal should be bought. The folder issued by
the Massachusetts Wharf Coal Company is espe¬
cially attractive.
The net earnings available for dividends of the
subsidiary companies of the Massachusetts Gas
Companies for October were .$312,350; for the
corresponding month last year they were $242,780,
and in 1913, $220,781. Following are the earn-
in.gs of the coal department for October, with
comparisons :
New England coke
New England coal,
Federal coal .
Tow boat . .
Total .
1915.
1914.
1913.
$50,007
$57,945
. 37,905
42,938
32,809
. 5,860
6,011
7,119
3,830
4,082
1,231
$103,700
$99,166
A hearing on soft coal rates from the Clear¬
field region in Pennsylvania to Providence, 01-
neyville and Auburn, R. I., which recently have
been advanced twenty-five cents per ton to $2.70
by the New Haven Railroad, was recently held
before Examiner La Roe, of the Interstate Com¬
merce Commission, in the Federal Building, Bos¬
ton. The chief protestants were the Carbon
Coal & Coke Company and the Skeele Coal Com¬
pany of Boston, who contended that the tide¬
water dealers, transporting coal from West Vir¬
ginia fields via Norfolk, are given an advantage
by the increased all-rail rate. Representatives of
the New Haven stated that the new rate to
Auburn was based on the rate of $2.70 to Wor¬
cester, that city being equally distant from Bos¬
ton and Providence, where tidewater dealers are
located. It was also stated that a reduction for
some Rhode Island points had been made from
$3.80 to $2.70, and that the road had decided to
make a flat rate of $2.70 for that territory.
Examiner La Roe took the matter under con¬
sideration.
Baltimore Trade.
Baltimore, Md., December 2. — {Special Corre¬
spondence.) — While the bituminous coal situation
here shows a gradual tightening of lines under
the adverse influence of poor labor and car sup¬
ply, although demand for commercial fuel is by
no means heavy for the season, the principal in¬
terest of the moment is centering in anthracite.
Dealers here, where yard reserve supplies are
none too large, are growing somewhat nervous as
to prospects. The movement of coal from the
mines, even after it is gotten awheel, is very
poor, such shipments often consuming from two
to three weeks. When coal gets in a yard or
siding the anthracite man here has to whistle for
the most part. It is only the fellow who requires
the immediate forwarding of bills of lading and
then gets immediately behind the shipment to
prevent it being sidetracked, who is getting
through coal in anything like satisfactory form.
Then the mines are often refusing to make
shipments, as they have not the coal in some
cases, or the cars in others, to take care even of
their most urgent orders. The result is that
stocks in Baltimore have been hit harder this
early winter than ever before to care for contract
obligations, and storing of more coal to take care
of the harder weather ahead is out of the ques¬
tion. Two or three weeks of real cold weather
just now is likely to see a genuine squeeze for
fuel. There has been much talk in the trade of
possible increases in prices, but no action has been
taken as yet to go above the regular winter
schedule.
In soft coal lines there is a loud cry for cars,
and the cry for the most part is being met with a
rebuff. The mines that received thirty to forty
per cent the past week in many regions were the
lucky ones. Under such conditions contract obli¬
gations fell further back. Operating interests not
infrequently are not only offering coal for sale,
but are actually buying coal awheel wherever
possible to fill up their contract obligations. Two
things are keeping the market from soaring. One
is that the industrial demand is not pushing even
up to contract obligations, except possibly for
those issues which are working on war orders,
and the other is that there has been an almost
complete cessation of export movement. Were
from 200,000 to 300,000 tons a month now going
out on foreign account, as was the case a few
months ago, there would be a more decided
squeeze. Last week foreign shipments were negli¬
gible, but a little more than 1,000 tons being load¬
ed. Only one small coal charter was noted. All
the coal trade has stopped foreign shipments for
the time being because of the excessive vessel
rates that are also tying up all classes of mer¬
chandise at eastern terminals.
Prices, where coal was available at all in the
open market, were a little tighter. The list to the
trade at the mines may be quoted about as fol¬
lows :
Fairmont Ordinary —
Three-quarter .
Run of mine .
F. O. B.
Mines.
F. O. B.
Mines.
$2.53
2.43
2.S8
2.63
2.43
2.38@2.43
2.38@2.43
2.58@2.03
2.48
Slack .
Somerset —
Best .
Good .
W. M. R. R.—
Freeiiort .
B. & 0. K. R.—
Freeport .
P. R. R.-—
Best South Fork .
. 1.40@1.45
... 1 30
Baltimore
Trade Briefs.
The October tonnage report of the
Baltimore
& Ohio Railroad shows the total movement was
3,124,328 tons, as compared with 2,662,377 tons
for the same period of 1914, a gain of 461,951
tons.
Great interest is being taken here in the grain
embargo placed by the Pennsylvania against grain
coming here, and the embargo of the B. & O.
against iron and steel for New York. It is
thought that much iron and steel may now come
here for shipment, and on the other hand the
holdup of grain coming here may give a chance
for a release of some of the fleet that has been
absorbed by the grain interests to the exclusion
of export coal movement.
The Baltimore & Ohio railroad has awarded
contracts for its new $1,500,000 concrete and steel
coal pier at Curtis Bay. The work was divided as
follows : Superstructure and bulkhead, H. S. Ker-
baugh, Baltimore and New York; dredging, same
concern ; conveying machinery, Robins Belt
Company, New York; car dumpers, McMyler In¬
terstate Company, Cleveland, Ohio; grading.
Smith McCormick, Easton, Pa., and thawing
sheds. Surety Engineering Company, New York.
Boomer Mine Explosion.
Boomer, W. Va., November 39. — Nineteen men
are known to have been killed by an explosion
in Mine No. 2 of the Boomer Coal & Coke Com¬
pany here today. Thirty miners were brought to
the surface tonight, and rescuers have hopes that
others will be found alive.
Ten miners were rescued from a sub-entry to
the mine at 6 o’clock this evening in a semi¬
conscious condition. When revived they said
they had seen many men apparently dead a short
distance from the point where the explosion oc¬
curred.
Early reports said fire was raging in the mine,
l)ut rescuers denied this. The fans were not af¬
fected by the explosion.
Rescue teams are working in thirty-minute
shifts under the supervision of State Mine In¬
spector Earl Henry and 1). J. Parker, chief engi¬
neer in charge of the car of the United States
Bureau of Mines stationed at Huntington, \V. Va.
464
THE BLACK DIAMOND
[December 4
Buffalo Trade.
liuri'ALo, N. December — {Special Cor¬
respondence.) — Tile anthracite shipments l)y
lake for the past week were on a fairly lartje
scale, amounting to 107,950. Nearly half the
coal, or 53,900 tons went to Duluth-Superior,
with 33,750 for Milwaukee, 13,900 for Chicago,
5,000 for Manitowoc and 3,400 for Marquette.
November was a rather light month as com¬
pared with last year and the total for the sea¬
son will undoubtedly run considerably below
a year ago. Shipments will be made for some
days yet, the intention of some of the ship¬
pers being to send coal forward as long as
the weather and ice conditions permit.
The demand from dealers is on a fair scale,
but it will take some more wintry w'eather
than has thus far been experienced to create
any flurry. A scarcity of cars affects the de¬
livery of coal at present, but serious delays
have not as yet occurred. The bulk of the
orders just now runs to chestnut and it is
a hard matter to fill all the orders for this
size. Other sizes are fairly plentiful.
The bituminous demand has grown consid¬
erably in eastern territory and some shippers
have a large business there. Prices are on
a stiff basis and much better than they are
nearer home or in Canada. It seems to be a
hard proposition to get a fair price here, but
some companies are declining to make any re¬
ductions, quoting prices even higher than the
regular schedule. It is believed that coal is
going to be worth more within the next few
weeks and operators feel that it would be
foolish to tie up any large quantity unless
they get satisfactory figures for it. Most of
the sales now made are for December de¬
livery, with the understanding that coal will
not be furnished for January or later months
at such prices.
The lake season in bituminous coal is about
over, and the next week or ten days will see
the finish. The ordinary situation at the end
of the season is a somew'hat weaker market
for a brief period, but it seems doubtful if
much weakness will develop this year. There
is a great scarcity of men and of cars, and
these factors are creating a pretty firm mar¬
ket. Labor of all kinds is not as plentiful
as it ordinarily is and employers are forced
to bid against each other to get help. The
outlook is for numerous labor troubles in the
mining districts in the near future.
Buffalo Trade Briefs.
Charles S. Bygate, of the Theiss-Bygate
Company, was a visitor to the coal trade here
this week.
The Richland Coal Company has opened an
office at Cleveland, O., and Roswell S. Price,
president of the company, will spend much of
his time looking after affairs there hereafter.
Buffalo anthracite shippers have refused
seventy-five cents on coal cargoes to Chicago
this week, this being about double the or¬
dinary rate. It is understood that that rate
was paid from Erie to Chicago.
It is expected that the New York State
Steel Company’s plant will start operations in
the near future, possibly next week, if enough
men can be secured. Labor is difficult to se¬
cure for a number of large plants here.
The steamer Nyanza ran aground with a
coal cargo at Erie, Pa., last week and had to
be lightered of 500 tons, after four tugs had
vainly tried to get her loose. The vessel was
reloaded and continued her trip up the lakes.
Several hundred miners employed by the
Rochester & Pittsburgh Coal & Iron Com¬
pany at the Adrian and Elorence mines went
on a strike last week, causing considerable in¬
convenience in the filling of the company’s
shipments.
The steamer .A.drian Iselin, owned by the
George Hall Coal Company, Ogdensburg, has
made ninety-three trips between that city and
Charlotte, on Lake Ontario, during the past
season. The vessel carries 3,000 tons, so that
her total tonnage for the season is nearly
300,000. The number of trips is a record-
breaker and good weather has favored the
Iselin all through.
The funeral of George P. Cronk, treasurer
and general manager of the Pennsy Coal
Company, was held last Wednesday at Frank¬
lin, Pa., the services being in charge of the
Order of Elks. The bearers were members
of the Elks and former associates in the com¬
pany. A special train conveyed the body and
fifty-two members of the local lodge o: Elks
to Clarion, where interjuent occurred.
The by-products coke plant projected by
the Wickwire Steel Company and the Semet-
Solvay Company, but laid aside on account
of the outbreak of the war, is to be built soon.
It is stated unofficially that the projectors
are sorry that they dropped the work, as they
need the coke. The plant will be near the
Wickwire Steel Company plant on the Ni¬
agara river and will have a capacity of 500
tons of coke a day.
Denver Trade.
Denver, December 3. — (Special Correspond¬
ence.) — The market here has been brisk during
the past week on account of several days of
cold weather. It has been especially cold during
the nights, the thermometer dropping to about
fifteen degrees below freezing. As a result the
market has displayed more snap than at any time
since the opening of the season.
Li.gnite production is around the top notch,
every mine running full time and crowded with
orders. The unexpected change caught many
dealers rather shorthanded and considerable de¬
lay occurred in the filling of orders.
The bituminous districts all report a rushing
business with a heavy tonnage. Trinidad, Wal-
senburg and Routt mines are all hard pushed
in the fillia? of orders, and running full time.
The output in the Canon City district is very
satisfactory and larger than for many months.
There is a very heavy demand this week for
Routt county grades.
While slack prices are strong, there is no
radical change in prices. Present production is
well absorbed by the better demand.
The following prices on lignite coal are ruling,
f. o. b. mines : For Denver delivery, lump, ,$3.35
to $3.C5 ; mine run, $1.50 to $1.65; slack, $1.05 to
$1.35. For country delivery, lump, $3.50; mine
run, $1.55 to $1.05; slack, $1.05.
A Matter of Rates.
Denver, December 3. — (Special Correspond¬
ence.) — Accordiag to a recent decision by the
Interstate Commerce Commission, pursuant to an
investigation of coal switching charges in Chi¬
cago, the coal shippers in Colorado are entitled
to recover the difference between the rates they
have been paying the railroads apd the rates
fixed by the commission. The. essence of this
decision, according to Attorney Albert L. Vogl,
of Denver, is as follows:
“'Where it can be shown that coal rates are
excessive rather than discriminative, the shippers
may sue and are entitled to dama.ges. The ship¬
per cannot get damages if it is shown that the
rates have been merely discriminative. They
must be in excess of the rates fixed by the
Interstate Commerce Commission before the
shipper has cause for action.
“The supreme court of the United States de¬
cided several years ago that discriminative charges
are not grounds for damages,’’ he said. “.4nd the
railroads have been relying on that decision to
protect them from prosecution for their inordi¬
nate coal rates.
“There is no question that the rates changed
the shippers in northern Colorado are not only
excessive but far above the rates fixed by the
commission, and therefore illegal. And the ship-
|)ers of coal from the northern Colorado fields
who have been paying these excessive charges
can sue and recover the difference between the
rates they should pay and the rates they have
been paying. The railroads are liable for a
refund of the excess in charges they have made,
and the supreme court decision does not protect
them.’’
According to the above the shippers of coal in
this state may now recover on excess charges
aiuountin.g approximately to $10(),()rr;).
A Ton Lump of Coal.
Denver, December 3. — (Special Correspond¬
ence.) — The lar.gest lump of coal ever brought
to Denver was delivered a few days ago liy
the Victor-American Fuel Company from the
Pinnacle mine in Routt county, which it recently
put in operation. The lump measured over eight
feet in width and weighed one ton.
The second largest lump was brought here
thirteen years ago by the Rocky Mountain Fuel
Company. It weighed half a ton and is still
at one of the company’s yards. It seems to be
in about as good condition as on the date of
its arrival in Denver.
Central Pennsylvania Status.
In response to a request from The Black
Diamond for an expression as to what pro¬
cedure at this time would best serve the
interests of the Pennsylvania bituminous op¬
erators, especially those in the central Penn¬
sylvania field, where the wage question comes
up for settlement on April 1st next, a well
known operator writes as follows:
“Everyone in the coal business realizes the
serious danger of labor trouble impending
.April 1st, 1916. There are three prospects
to contend with:
First — An advance in wages.
Second — Suspension of mining pending set¬
tlement.
Third — A strike.
“The first will, of course, be disputed by
the opposing parties.
“The second and third contingencies would
be regretted by both sides and would cause
losses to the operators and suffering to the
miners and their families. With the present
prospect of a serious shortage of railroad
equipment clear through to April 1st next,
the miners will not be over-prosperous at
that date.
“Therefore, the question of a settlement
should not be permitted to go beyond April
1st, and preparation for negotiations should
be commenced at once.
“Operators should first of all, accumulate
by subscription or assessment, a fund of
money to assist those of their numbers not
in shape to carry on a strike in case an agree¬
ment is found impossible at the outset.
“The last advance was not warranted, as all
know at this time. It was brought about
solely because of the inability of two or three
members to stand a shut down. Had a fund
been arranged to meet such a situation, the
central Pennsylvania field, as a whole, would
have benefited. Operators would have saved
thousands of dollars, and labor would have
been more steadily employed. The fictitious
situation that prevailed in the central Penn¬
sylvania district was not to the benefit of any.
“Facts and figures should be gathered and
tabulated at once so that no delay may occur.
These figures should be made up by both
sides to be presented by each side in a clear
and concise manner.
"Operators should have comparative costs
with other fields, bearing in mind that every
advance made in Central Pennsylvania makes
the handicap as compared with mining costs
in other districts, a little greater. Compari¬
sons of present costs against those existing
when the scale went into effect will show an
increase of about eight cents, brought about
by various causes not connected with the scale.
These figures should be gotten up also.
Miners’ representatives should attempt to
show plainly where their claims for increases
in wages are based.
“A publicity bureau should be organized.
Facts, figures and details of negotiations
should be given to the press daily. Negotia¬
tions pending at the end of March are sub¬
ject to an over anxiety for settlement. The
high market prices caused by the fear of the
public has biased largely the men’s minds in
their work. For instance, three years ago a
parallel situation prevailed where both hard
and soft coal wage agreements expired simul¬
taneously. Some operators urged the grant¬
ing of an increase stating that a hard coal
strike was certain and that soft coal would
sell at $1.75 per ton at the mines in central
Pennsylvania for months to come. An ad¬
vance was granted by soft coal operators and
a settlement was made by the hard coal dis¬
tricts and soft coal has done well to sell at
the cost of producing ever since.
“Every strike or labor agitiation has cost
the central Pennsylvania district business,
which is lost to West Virginia and other non¬
union fields. Many buyers do not want the
losses and annoyances entailed through in¬
terruptions to shipments.
“Therefore, this is the time for operators
to act.’’
1
rHE Black Diamond
Vol. 55. No. 24 cm
DECEMBER 11, 1915 $3.00 Per Year
What Is a Proper Price for Coal After April 1st?
What are the prices of coal going to 1)e after
the first of next April? Principally, what are
the contract prices of coal going to be on com¬
mittments made between now and the first day
of May for the delivery of coal on and after
the first of next April either for a period of one
year or two years? Those are the big questions
which are crowding int(t the mind of the coal
man now.
Every one is reasonal)ly sure about the trend
of affairs between now and the first of April.
Everyone believes, for example, that in the east
prices will rise to a premium of fifty per cent
if not one hundred per cent of normal in the
next few months. In the west, nearly everyone
believes that prices are going to l)e marked up
from twenty-five to thirty-five if not to fifty
cents a ton or more in the course of the next
four months.
Everyone believes that this is going to result
from the operation of very natural forces. That
is, there will be a big demand for storage coal
anticipating the likelihood of a mine suspension
on April first. Everyone believes that the normal
demand will be complicated by a car shortage and
labor shortage. Everyone is convinced that the
price will get an additional rise due to the fact
that very few individuals and very few manufac¬
turing concerns have stored coal in anticipation
of this winter’s needs. So everyone thinks that
the market is going to come in for quite a lively
boost.
But as to what is going to happen after the first
of next April when a mine strike will lie a
factor, if not indeed a fact, opinion is divided
by about as much space as it is possible to get
between the poles.
A percentage of the operators believe that, re¬
gardless of the general theory to the contrary,
lightning is going to strike twice in the same
place. That is, they believe that there is going
to be a prolonged strike of the anthracite mines.
They believe this is going to present the same
tantalizing uncertainty that characterized that
strike in 1903. They believe that the anthracite
mines will start out on what promises to be a
short strike. They believe that history will repeat
itself and that the people will expect to hear
every day that this strike is ended, only to have
one day succeed another until the strike has run
into months — as it did in 1902. These operators
believe, therefore, that there is going to be the
same kind of shortage of coal at the end of 1910
that there was at the end of 1902'. They be¬
lieve, therefore, that there is going to be a
reproduction of prices then charged for coal,
namely two to three times the normal price, in¬
cluding the freight rate.
The operators who expect lightning to strike
twice in the same place are preparing themselves
accordingly. They are refusing to accept, for
their coal for 1916, a price which would mean a
very sharp rise over current figures. They even
refuse to tie themselves up for two years on the
basis of that rise in prices. They say that twenty-
five cents a ton over current figures does not in¬
terest them at all.
As a corollary to this decision, these opeators
are naturally beginning to do the most human
of things. Anticipating a shortage of coal, they
are planning to make up their share of it by
increasing their productive capacity. This, of
course, is the surest way of killing the very one
thing that they want to see come, namely, a
sharp rise in the current prices.
However, the fact that to increase production
kills the hope that these operators have in mind,
is the one thing that they do not seem to get into
their minds.
On the other hand, a great majority of the
operators are of the opinion that whife prices
.should rise after the first of April in order to
permit the operators to live, they do not see how
such an advance is possible. They cannot make
up their minds that there is any such good luck
in store for them. These operators take a view
which is expressed by one of them, in substance,
as follows :
Eastern Operators, Generally, Expect a
Rise on Contracts and Spot Coal — West¬
ern Men See Little Hope in View of
Large Over-Production.
“The country has overdone the creation of coal
productive capacity. It has overdone it so ex¬
travagantly that it will take from fifteen to twenty-
years for the national coal consumption to catch
up with what the mines today are capable of
doing. With the mines able to produce, with new
machinery coming along that is going to speed
up production in the mines, and with the rail¬
roads constantly growing in efficiency, there is no
hope that prices are going to rise to any such
extravagant extent as twenty-five cents a ton on
the average or any other figure.”
Some operators are candidly of the opinion
that if they hold their own in the matter of price
and get off with paying a small increase to the
miners, they are going to be lucky.
These same pessimistic operators, however, arc
doing the same as the optimists are doing, namely,
they are planning to increase their productive
capacity. Their reason for so doing is:
First, every operator thinks that while the trade,
generally, has overproduced, the other fellows
haven’t as good coal as he has. Therefore, he
can increase the production of his superior prod¬
uct and get away with it. At any rate, he is
increasing the productive capacity of his mines.
Thus whether the possible future is viewed
from the point of view of those who expect very
much higher prices, or whether it is studied from
the point of view of those who expect the same
or even lower prices, the natural result is going
to be an increase in the productive capacity of
the bituminous mines. If both of those programs
are carried out, it is very easy to see how the
favorable prospects are going to be killed. That
is, larger output will offset the urgent buying
mood which normally would make for higher
prices.
An elaborate discussion of this subject by the
operators themselves was brought out within the
last week by a letter of inquiry addressed by the
editor of this paper to the heads of coal concerns
in all parts of the country. The editor had be¬
come acquainted with two circumstances which
suggested the letter which is as follows :
"Just recently a big eastern coal company re¬
fused to accept a contract under these conditions.
“A contract for big tonnage does not expire
until the first of next April. The selling price
was under $1.00 a ton, the consumer offered_ to
cancel that contract and make a new one, running
from date to two years beyond the first of April
next at twenty-five cents a ton increase in price.
“Another coal operator refused to accejtt a
contract for 600,000 tons of coal to be delivered
next year at a price which is twenty-five cents
a ton above the current figures for his eastern
coal.
“Most men in the east are more concerned
about the prices after the first of next .\pril
than they are between now and the first of .'Vpril.
How do you stand on this question? What are
your opinions as to future prices? Will they be
as high as these two incidents indicate? Do you
exnect lower figures?
“Will you kindly favor us with a reply at your
convenience?”
A good many interpretations have been placed
upon those two incidents. One of them was that
the contractor who offered to advance his own
price twenty-five cents a ton was conscious that
he was getting coal now below cost of pro¬
duction. Incidentally, this seems to be about the
truth.
Another was that the contractor was willing to
pay a Iiigher price after next year in order to be
sure of gettiiu/ his coni delivered this year.
.\i any rate, the whole question of price is very
elaborately treated as the following communi¬
cations from operating companies will show.
W. H. Warner of W. H. Warner & Company,
Leader-News Building, Cleveland, Ohio: "Re¬
plying to yours of December 1st, there is a very
good demand for any low sulphur coal that will
go east, and we look for considerable advance
in this coal during the next two or three months.
It is predicted in some quarters that the advance
will amount to fifty to seventy-five cents per ton,
although this will depend quite largely on weather
conditions, which in turn woultb affect the car
supply.
“As a general proposition we look for the
market price of coal next year on contract to be
anywhere from ten to twenty cents per ton
higher than this year. This applies particularly
on coal that is used for steel making or gas
purposes.”
The Milton Coal & Lime Company, Canton,
Ohio, writes as follows: “In regard to enclosed
letter, would say we have not sold any coal ahead
for over thirty days for past six months. We
just sold fifty cars for this month. The party
tried to get it at same price to April 1st, and w'e
refused it. We believe coal will be in such
demand that buyers will be begging for coal at
fully twenty-five cents advance before April 1st
and it may come within thirty to forty days. All
stocks are light. Labor shortage and car shortage
will cause it, and operators are in need of profit.
We believe we will get it.”
H. IT. Devereux, president of the Chicago-
Springfield Coal Company, Illinois National Bank
building, Springfield, Illinois: “In reply to yours
of the 1st. We believe it is not a question of
what the prices will be after the first of April,
l)ut rather what they should be and how this
price can be established. Considering the great
amount of risk of all kinds and the constant de¬
preciation that the coal operator has to contend
with, a price at this time of $1.35 per ton for
run of mine would be no more than fair, and
while there may be some improvement in price
here and there, we believe that the only way in
which a general increase can come is through
the railroads adopting a more liberal policy in
Iniving their fuel requirements.
“The buying of cheap coal by the railroads is
not. in our estimation, good business, but rather
a case of killing the goose that lays the ‘Golden
Egg.’ If it is true that the coal mines supply the
railroads with about sixty-six per cent of their
gross freight tonnage, then the railroads should
not force the mines to sell their product to them
at cost or below, and by taking from one-fifth to
one-third of the tonnage from the mines local
to their roads at this low price to thereby estab¬
lish a low price on the balance of their output, for
it is hardly conceivable that with the railroads
paying a fair price for their fuel, that there
would be any of the remainder of the output sold
at less than the then established price.
“To the outsider it would seem that the price
to railroads wotdd rest with the operator, but
you know that the whi[) is in the hand of the
railroad and will remain there unless present con¬
ditions are changed.”
H. L. Cory, sales manager of the Continental
Coal Corporation, Chattanooga, Tennessee: “We
thank you for yours of recent date, containing
information as to the attitude of eastern operators
regarding the price for steam coal. We note that
several contracts have been offered at an increase
of twenty-five cents per ton.
"We have never known in this section steam
coal prices to advance more than five cents or
fifteen cents in one year over the previous year.
Current contracts are about ten cents less than
they were from 1912 to 1914. With restoration
of normal industrial conditions we can reasonably
expect in this district to get back to normal basis,
which will probably be ten cents above what we
are getting now. Any advance over that will
have to be l)a.sed on something out of the ordi¬
nary, such as tini)reccdented car shortage or con¬
gestion, long continued strike, or something
unusual.”
Fern Hills Mines, Owensboro, Kentucky, says:
“Yours of the 1st inst. is received. We hardly
466
[December 11
l<iiow what to say about the coal situation in this
district. Quite a number of mines, that is to
.say the country mines around here, are tied ui)
with a lot of low priced contracts. The Fern
Hill mines, however, are not handicapped with
any of these.
"There seems to be a better tone to the market,
and we believe that within six months it will be
\ery strong. All the mines in this county are
non-union.”
E. S. Helbuni nf the Hignite Coal Mining
• Jompany, Middlesboro, Kentucky: “Your letter
of December l.st asking our opinion as to what
we think the coal market will be after April 1st
received. It is the opinion of the operators in
this section of the country that steam coal will
continue to advance from this time on; that nut
and slack will be exceedingly high during the
spring and summer and that run of mine will
demand as high price, or higher, than it is selling
at now. Conditions look very favorable for a
go(;d price on steam business.”
Howard J >. Preiffer & Company, Real Estate
'I'nist building, Philadeliihia, Pa.: “In reply to
\ours of the 1st, we would say that it is our
policy to only take contracts at a price that will
show the mine a ])rofit, considering, of course,
with whom the contract is made. We closed a
contract this week for 300,000 tons to be delivered
in equal monthly proportions, within the next
three years. This contract is not to begin until
.April 1, 1016, and has a wage clause agreement
in it.
“If the coal men, as a whole would make
contracts with a money penalty for non-delivery
or non-acceptance on delivery, it would immedi¬
ately put the coal business in a position it should
be in. As to what the prices will be after next
.April, no man living can say ; we do know, how¬
ever. that the prices for any commodity eventually
roach an average price that shows a reasonable
profit to tliat industry, and it is our policy to
accept business when we can get such a price.”
T. E. B. Siler, president of the Seng Creek
Coal Company and Marsh Fork Coal Company,
Charleston, W. Va. : “I beg to thank you for
your letter of December 1st and to say that we
are not making any contracts to run later than
April 1, 1916, and we certainly w’ould not take
any contracts for the next year at figures aver¬
aging less than twenty-five cents per ton advance
over the present year’s prices. We would prefer
to wait until the first of April before doing even
that.”
Philip P. Phillips of the Phillips Coal Company,
Ottumwa, Iowa; “Replying to your favor of the
1st, beg to advise that we will have no particular
relief in the coal situation this winter so far
as price is concerned. The price for coal in the
Iowa coal market is governed by the prices quoted
in Illinois, and so long as Illinois continues to
have an overproduction we cannot expect much
relief in Iowa. Our business at the present time,
however, is better than it has been in many
months. This, of course, is the season when the
cellars and coal houses are being filled with
domestic coal, which stimulates business. Then
to the prospective agreement period coming April
1st is tending to induce the railroad companies
to store some coal.”
E. (A Roberts of the Fairmount Coal Company,
Rutfalo, New York: “Answering your circular
letter of December 1st with reference to future
contracts, beg to state that our entire tonnage is
sold up to April 1st next.
“I am not taking on any new business beyond
that time until we know what our mining scale
and other conditions will be after April 1st.
“There seems to be quite a number of inquiries
for business through the year 1916, but I have
refused to consider same until we know what is
going to confront us by the new mining scale.”
F. R. Babcock of the Babcock Coal & Coke
Company, Pittsburgh, Pa. ; “In response to your
letter of December 1st, relative to the present
situation, and our idea as to accepting contracts
for future delivery, we beg to advise that we
are only ‘sinall fry’ in the coal business. Most
of our product goes into coke.
“However, under the present outlook, we would
not feel justified in booking contracts for large
blocks for delivery next year. In fact, we would
not Want to tie up a large portion of our product
at any price. We would rather take a chance
on spot shipments, as we believe the market is
bound to show some real improvement.”
Regal Coal Company, Oskaloosa, Iowa ; “Re¬
plying to yours of the 1st inst. relative to the
future selling price of coal.
“We are situated a little too far west to feel
the influence of a strong market as quickly or as
forcibly as the eastern operators experience. The
east must feel the increased prices much earlier
than we owing to the much larger number of
THE BLACK DIAMOND.
industrial manufactories being located in the
eastern territory. The enormous business placed
with these industries by the nations at war creates
an unusual market for coal, both by these indus¬
tries and the railroads in making deliveries. It
is our opinion that should the war continue the
|)rice of coal will no doubt go up, and .should
the war l)e terminated within a short time, we
see no reason for a reduction.
“The contract between operators and miners
expires April 1st., and there is no doubt that
the miners will make a demand for an increase
in wages — and we think they will get it.
“In view of the above stated reasons we feel
that the operators must receive a higher price
for their coal than that for which they have
been selling.”
J. W. Dawson, general manager of the Kellys
Creek Colliery Company, Ward, Kanawha County,
West Virginia: “I thank you for and appreciate
\ery much your letter of December 1st about
the price of coal.
“We agree in every detail with the two con¬
cerns who declined the business mentioned. We
are fully convinced that commercial activities
will, between now and the middle of 1916, demand
more coal than can be supplied, and we believe
coal operators have at least come to their senses
and have determined to discontinue the practice
of selling coal at from ten to twenty-five cents
a ton below actual cost, which they have been
doing during the past twelve months.
“We are making no sales for coal to be shipped
after March, 1916, and we don’t expect to on
the present market.”
Henry L. Gilbert, general manager of the Black
Diamond Company, New Hayden Building, Co¬
lumbus, Ohio : “Replying to your favor of De¬
cember 1st, we expect to see decidedly better
prices for coal before April 1st. We are unable
to make any prediction for prices after April 1st,
as that, of course, will depend largely upon the
wage scale to be settled for the following two
years.”
Douglass Gorman, president of the Cumberland
Coal Company, Continental Trust Building, Bal¬
timore, Md. ; “Replying to your letter of the
1st inst. We confidently expect to see a very
strong market on both coal and coke throughout
the entire year of 1916.
“The question as to whether prices will be
higher after April 1st than prior thereton depends
entirely on the possibilities of a prolonged strike
after April 1st.”
W. E. Eppert, president and treasurer of the
Eureka Block Coal Company, Terre Haute, Ind.:
“Replying to your inquiry of the 1st. It is
very gratifying to know that some people are
optimistic enough to do what you say. If I
could understand more certainly what kind of
conditions are likely to prevail in the east, I think
I could judge better what would likely prevail
here.
“I cannot sec how prices can be made lower
and therefore certainly hope they may be much
higher.”
F. H. Wigton, receiver for the Morrisdalc Coal
Company. Philadelphia. Pa. : “Your letter under
date of December 1st has been received relative
to the possibilities of prices of bituminous coal
during the year 1916, after April Ist, and we
note the instances to which you refer.
“It is a well recognized condition, both through
governmental reports and by actual experience of
those engaged in the business, that the bituminous
coal industry for .several years past has been far
from profitable. This condition has been brought
about through a multiplicity of circumstances into
which it is not necessary in this communication
to enter.
“There have been various suggestions made for
the improvement of the industry springing from
tlie universal desire of all those engaged in the
.‘same to see a profit in place of a loss resulting
from every effort. So far as we know of. all
of these have been based upon an arbitrary re¬
duction or restriction in the output so that the
same shall be brought within the limitations of
the market requirements.
“It is thereby recognized that the underlying
law' of ‘supply and demand’ absolutely controls
all business and makes the difference between
profit and loss.
“We have never looked with much favor upon
the arbitrary restraint, because, that which is
artificial must in the end result unsatisfactorily.
“The supply of bituminous coal is regulated by
three factors:
“1. The ability of transportation companies to
move from the collieries to the market.
“2. The amount of labor necessary to produce
the coal.
“.3. The mining capacity.
“It is conceded that the transportation com¬
panies of this country, by reason of the con¬
ditions in the past few years, which enforced
excessive economizing, have not been able to
keep up in their facilities with the full require¬
ments of the country when it shall have emerged
from the slough of depression to one (;f normal
activity; and, therefore, as the activity appears
to be at hand, they will not be able to transport
:my increaseil amount of coal beyond what they
were, doing in the year 1913, whereas, the country
w ill require an amount in excess of that aggre
gate, which it has not been taking during the
years 1914 and 1915. This, therefore, argues a
restriction in the ability to transport at least an
excess of coal beyond the requirements of the
market.
“The coal mining industry requires an influx
of new labor yearly to maintain at least a parity
of output witli the preceding year. They have
not gotten that increase of labor in the year 1915,
nor is there the slightest prospect at the present
time that they will secure it in the year 1916.
Instead of an increase in these two year.s, there
is an actual decrease in labor.
“By reason of the restricted demand for coal
in the years 1914 and 1915, up until November,
there was little incentive for the average operator
to cither increase development work nor to main¬
tain that which he already had because of his
inability to use the existing capacity, and, also, the
necessity to economize. We, therefore, believe
the mining capacity in the country is no greater,
if it is not less today than it was a year ago, and
it is not likely to be materially increased so long
as the shortage of labor is so pronounced.
“By reason of these three causes, we believe the
demand for coal in the year 1916, after April 1st,
owing to the industries of the country requiring
full supply, will be fully up to the ability of the
coal operator to deliver to the consumer the
amount required if the demand is not really in
excess of the supply.
The law of ‘supply and demand’ thus working
will enable the coal operator to sell all of his
output in an active market and prices to be
received will be the highest cost of production
in any partciular field, plus a margin for profit.
“As the average price of coal has been unre-
munerative, notwithstanding all kinds of subter¬
fuges to mislead the average operator into the
thought he was producing coal lower than in
reality, it is only fair to presume that twenty-five
cents per ton advance will not cover all the pa.st
shortcomings and yield a reasonable profit, and,
therefore, the selling price may advance con-
siderabl}'^ beyond twenty-five cents per ton for
the coming year.”
William Atkins, treasurer of the Kingwood
Coal Company, Philadelphia, Pa. : “We have
your favor of the 1st inst. It appears to the
writer that at present the situation which will
control the price of coal after April 1st next
is a little uncertain. I think the impression
among the officers of the anthracite coal com-
])anies is that there will be a stoppage, but for
how long nobody knows. Of course, if it only
lasts for a .short time, it will not have mucli
effect on prices : but a stoppage of any great
length of lime in the mining of coal would
undoubtedly have a serious effect on prices.
“It is impossible at this time for anybody to
foretell how long the stoppage will be, if any, and
we are inclined to think that the price of coal
will be governed very largely by the car supply
and the ability of the railroads to handle it. Of
course, in this one man’s guess is as good as
another’s.”
Rex Company Sold.
Huntington, W. Va., December 6. — The Rex
Coal & Coke Company’s mine at Ethel, W. Va,.
was sold today. The new company will operate
under the name of New Rex Coal & Coke
Company, and will be managed by the following
men; President, E. R. Reese, TTuntington. W.
Va. ; vice president and .general manager, J. b'.
McClung, Ethel, W. Va. ; secretary and treasurer,
George S. Wallace, Huntington, W. Va.
This mining property is known as one of the
best in the Logan field. _ The famous Chilton
seam is being mined, besides the No. 5 block
seam, nearly twelve feet in thickness, and the
famous Winifrede seam cover a large area under
lease. Karl F. Schoew of Huntington conducted
the negotiations.
N. Bonni.st, who was formerly connected with
Messrs. Cooke & Wilson of Cleveland, Ohio, has
joined the sales forces of the Morgan-Gardner
Electric Company of Chicago. He will cover the
territory comprised in Illinois and Indiana.
No. 24]
THE BLACK DIAMOND
467
Six Reasons Condemn the Rate Advance
.'I'lie railway bureau uf the Chicago Coal Mer¬
chants Association has asked the Interstate Com¬
merce Commission to suspend the tariffs which
call for an advance in coal rates from Indiana
and Illinois to the Chicago gateway. In doing
so, si.x reasons are given why the tariffs should
be suspended. The protest of the association fol¬
lows :
“The Chicago Coal Merchants Association, a
voluntary asociation of about two hundred and
forty (2401 wholesale and retail coal merchants
located within the Chicago switching district, said
district being more specifically set forth and
described in Lowrey’s Tariff 20-F, I. C. C. 30,
respectfully petition you to suspend, in accord- ^
ance with the act to regulate commerce, all of
the below mentioned tariffs filed by the carriers
of coal to Qiicago district, all of these tariffs
published to become effective December 15, 1915,
or thereabout, and putting in effect a horizontal
increase of live cents per ton from mines in Indi¬
ana and Illinois to the above described territory.
“The tariffs which petitioner seeks to have
■suspended are as follows, also such other tariffs
which have not yet been brought to your i)e-
titioner’s notice carrying said advances: Chicago,
Burlington & Quincy R. R. Co. Sup. 32 to I. C.
C. 10688, effective December 15, 1915 ; Cleveland,
Cincinnati, Chicago .& St. Louis Ry. Co. 1. C. C.
6680, effective December 15, J915; Chicago Creat
Western R. R. Co. Sup. 37 to I. C. C. 4908, ef¬
fective December 15, 1915, etc.
“(Jur reasons for asking for the suspension of
the above mentioned tariffs are:
■■|•■i^st — .'Kt the present time, many of our mem¬
bers have made and entered into contracts for
ihe sale of coal in large amounts, based on ex¬
isting freight rates, which said contracts con¬
tain no elatises permitting of an advance in
lirice, due to change in freight rates, during the
life of the contract (this statement particularly
ai)plie.s to various Federal, .State and Municipal
contracts, which run into very heavy tonnages).
“Second — Furthermore, with regard to either
steam or domestic’ coal delivered by wagon from
dealers’ yards, an advance in freight could not
be made, without increasing the price correspond¬
ingly to the consuming public, which is not now
advisable, because factories and their employes,
long idle, are just now becoming active.
“Third — ^These rates can not be equitably ad¬
vanced. at this time, to the above market, with-
f)Ut creating a diserimination.
“A — For the reason, that Illinois intrastate rates
have been suspended by the Illinois Public Util¬
ities Commission, an approval of these tariffs
would result in coal originating at Illinois mines,
on the C. C. C. & St. L. R. R., reaching this ter¬
ritory at a rate five cents per ton higher than
that originating from the same districts on other
lines; owing to the fact that coal originating
at Illinois mines, on the Big Four Railroad,
moves to Chicago switching district as interstate
t rathe. 1'his same situation obtains bn coal
from Illinois mines .shipped to points within the
( hieago switching district, located within the
slate of Indiana.
“H — Also for the further reason that Indiana
intrastate rates having been suspended by the
Indiana Railroad Commission, and if the inter¬
state rates arc approved by your honorable body,
it will leave the rates in these tariffs from Indi¬
ana mines to a portion c)f the Chicago switching
district territory located in Illinois subject to a
discrimination of five cents per ton.
“C — Also for the additional reason that in I.
& S. Docket 555 an advance of ten cents per ton
was granted to all points west of the Mississippi
river, and north of a line drawn between Mil¬
waukee and IMadison, Wisconsin, and if the tar¬
iffs herein mentioned are approved by your hon¬
orable body, it will create an additional advance
of five cents per ton on coal from mines in the
slate of Indiana moving via the Chicago gateway
to points beyond to which there are no througli
rates, because of the suspension of the Illinois
intrastate rates by the Public Utilities Commis¬
sion. This also applies to all points west of Chi¬
cago, in what is known as Illinois Freight Com¬
mittee Territory.
“Fourth — In conclusion, we respectfully sug¬
gest to your honorable body, that at the present
time there is great uncertainty and confusion
existing in the minds of the coal trade, in the
Chicago switching district, owing to the fact
that the rates to this market from Pennyslvania.
West "Virginia, Ohio, Kentucky and Tennessee
are also known to be under discussion for re¬
vision; whereas, the present rates having been
based on well established differentials, which
have, in the main, been satisfactory from a com¬
petitive standpoint with regard to the various
coals coming from the various fields all these
rates should be seriously considered in conjunc¬
tion with the present i)rr)posed advances from Illi¬
nois and Indiana.
“The point which we, as business men, most
desire to emphasize is that the stability of rates
and proper differentials thereof, be maintained so
that we may know, from year to year, upon jusi
what we can base our calculations, as rate ad¬
vances coming during the life of existing con¬
tracts, are a great blow to stable business con¬
ditions, and disturb relations between shipper
and consumer and unnecessarily burden your
honorable body. In this connection, we would
respectfully cite that rate advances, when neces¬
sary, should occur at some definite period, such
as is now the case with mining wage scales, which
The following, an extract from a letter writ¬
ten by a Massachusetts reader, will I am sure
interest everybody :
“I am about to sell my business, a business
which I have built up in the last ten years and
which is valuable and making a good, regular
])rofit. .\ly health has broken down, and it is
my intention to rest for about a year and then
re-engage in the same business in the same city.
•My buyer has asked me to sign an agreement not
to go liack in the same line of business, but I
have put him ofl' until I could obtain your ad¬
vice. Have I not heard that such agreements
are illegal? I do not wish to tic myself up so
that 1 can’t go into business again, and as this
is the business I have always followed, 1 should
be out if I agreed not to go into that. Please
advise me how far a man ought to go in making
an agreement not to re-engage in business.”
This kind of an agreement which this cor¬
respondent speaks of. viz., an agreement by the
seller of a business not to go back into that
business, is considered by the law an agreement
in restraint of trade, and must be framed within
certain limits, or it will not be enforced. The
courts do not believe in restraint of trade, but
they will enforce an agreement which protects
the buyer of a business from the former owner’s
competition, if it doesn’t go too far. Under the
old English law. which is the foundation of
our law, you could not tie up a man to
stay out of business. That rule, however, has
been relaxed, and you can do it today anywhere
in the United States, within certain limitations.
Those limitations are that the seller must not
agree without limit as to time to remain out of his
former business forever, nor must he agree with¬
out limit as to territory, to remain out of his
former business everywhere, even for only a
limited time. For instance, if a hardware dealer
sells his store and agrees never to go into the
hardware business anywhere, the agreement is
void. If he agrees not to go into the hardware
business anywhere for a year, the agreement is
void. But if he agrees never to go in again in
the town where his former business was located,
the agreement will usually be held to be good.
The courts, however, look with most favor upon
agreements that kec]) a man out of business in
a given territory for a limited time, thus pre¬
scribing a limit both as to time and territory.
The purpose of course is to give the buyer time
to establish a personal connection between the
customers of the house and himself.
In most states today there is no iron-elad rule
about it. When one of these agreements gets
into court, the courts listen to all the facts and
then ask themselves this ([uestion : “Here is a
man who has bought a business, relying upon
the seller’s promise that he woidd not immediately
start in to compete with him. What sort of pro¬
tection will be adequate for him?” And then
they will sujjply that protection if they can; in
other words, if the agreement the parties have
entered into is not unreasonable, it will be up¬
held. Particularly because it is a low thing for
the seller of a business to sell on an express
promise not to at once compete with his buyer,
and then, with the latter’s money in his hand,
l)lead that his agreement was invalid,
I can best give point to this explanation by cit¬
ing a few of the restrictive agreements which
have been upheld by the courts ; an agreement
on the sale of a magazine not to publish a
similar one ; an agreement on the sale of a law
said definite period is well known in advance to
the trade, and the effect provided for.
“Fifth— Furthermore, it is our belief that rail
coal and coke rates to a great market like Chi¬
cago, through which gateway practically moves
about one-twenty-fifth of the entire coal pro¬
duction of the United States, which .said Chicago
market is also subject to water competition, that,
therefore, Chicago should be considered more as
a basing point rather than be governed by rates
that are practically the sum of locals to inter¬
vening points.
“Sixth — And furthermore, we believe that it
would be a great advantage to both the coal
trade and the railroads of Chicago, if all coal
and coke rates to Chicago were, made to apply
to the entire Chicago switching district as, at the
present time, confusion and inequalities arise
from the present practice of having rates termi¬
nate on initial lines, subject to varied absorp¬
tions and charges, which residt in unjust discrim¬
ination.”
practice extending throughout England, not to
practice law in England for twenty years; an
agreement not to engage for ten years in busi¬
ness as a soap manufacturer within forty miles
of Lockport, N. Y. ; an agreement not to engage
in Imsiness as a banker in a certain place for
ten years ; an agreement not to carry on a tobacct)
business in Albany or .Schenectady (N. Y.) and
surrounding towns; an agreement not to run
wagons over a butcher routx; which had been sold ;
an agreement Ijy the seller of a bakery never to
solicit trade from the old customers; an agree¬
ment by the clerk tor a lirm of custom house
brokers not to take a similar ()osition within
fifty miles of the same city for twelve months
after he gave the position up.
In all these cases and in many more, the courts
held that the agreement oidy afforded reasonable
protection to the person involved.
Here are some agreements which the courts
have held invalid because they involved unreason¬
able and unnecessary protection : an agreement
not to practice dentistry in any part of a district
two hundred miles in diameter ; an agreement not
to carry on a perfumery business within six-
hundred miles of London; not to become a coal
dealer anywhere for nine months ; not to make
yeast powder anywhere for eight years ; not to
re-engage in a certain manufacturing business
anywhere within a thousand miles of the seller’s
former town; an agreement by an employe not to
engage in similar business, after leaving his em¬
ployer, within three years in any of sixteen
states ; an agreement by an oil dealer not to go
back in that business anwhere in Indiana, the
city of Indianapolis excepted.
Here the standard was the same — does the
agreement go beyond the line of needed protec¬
tion? If it does, as it did in all of the above
cases, it is set aside, and the seller of the busi¬
ness is as free as if he never made it. — (('opy-
rif/Ia, December. by Ulton J. Buckley.)
“I Told You So.”
The ride of The Black Diamond is not to
print any poetry. However, this contribution on
“I Told You .So,” while taking the prose form,
is in poetic measure and covers the point which
is so decidedly interesting we arc going to print
it. The author, incidentally, is W. J. McGowan
of Percy Heilncr & Son, Springfield, Mass.
“Some weeks ago when fields were green we
paid twelve cents for gasoline. And now we’re
paying twenty-four 1 Why didn’t we lay in a
store? The same with coal -You thought we lied
this summer when we prophesied that things
would soon begin to hum, with transportation on
the bum. When we advised you to buy coal
you hated to part with your roll, and here we
are. just as of old. December first, it’s getting
cold, the coal pile’s low, no cars in sight. The
))oor coal man works day and night. The miners
have gone home to war. Railroads arc using
every car. But what’s the u.se of all this flow?
.\ fool can say T told you so.’ If you need
coal put up a yell. We’ll do our best to treat
you well. We still know where to get good coal,
so write or phone. We’ll pay the loll.”
.'\ statement by L. C. Sabin, general superin¬
tendent of the locks at Saidt Ste Marie shows
that for the months of November the west-bound
movement of anthracite was 233,708 tons and
that of soft coal was 1,343,248.
Tying Yourself Not to Re-engage in a Business.
468
THE BLACK DIAMOND
[December 11
Coal bins erected by the Indiana Harbor Lumber & Coal Co. Front view.
The view shows the bins from the driveway side and indicates that the
coal when stored must be put into the wag'on by shovel or a loader.
Rear view of coal bins erected by the Indiana Harbor Lumber & Coal Co.
Walls are eig'ht feet above floor, the timber superstructure being' bolted
to the concrete by anchor bolts embedded in the partition walls.
Permanent Coal Bins of the Indiana Harbor Lumber & Coal Co.
The Indiana Harbor Lumber & Coal Company
is one of the well-known buildin.q' material supply
dealers at Indiana Harbor, Indiana. 'I'hey re¬
ported having completed on September 17, the ten
coal bins shown from two points of view in two
of the accompanying illustrations. These were
built throughout of reinforced concrete, except
for the superstructure which is mainly a roof.
The ten bins form a unit 140 feet 8 inches by 20
feet 8 inches in outside dimensions. Each bin
measures approximately 14 by 20 feet inside. Bins
are floored with concrete.
An accompanying plan gives details of con¬
struction, which are further illustrated by re¬
productions of photographs showing methods of
placin.g reinforcing and of form construction.
The simplicity of this work, and its decided ad¬
vantages viewed from the standpoint of perma¬
nence and from the protection that will be afford¬
ed against fire, sometimes resulting from spontan¬
eous combustion in stored coal, display investment
wisdom on the part of the Indiana Harbor Lum¬
ber & Coal Company — a wisdom that could well
be imitated by many other dealers who must
provide similar facilities.
Reinforcing steel in place for one of the partition
walls. This wall, as mentioned, was designed
as a vertical cantilever and the horizontal bars
tie into the bach wall to prevent it from over¬
turning.
No. 24]
THE BLACK DIAMOND
469
Hocking Valley Coal Rate Hearing.
Trade at Azores.
Columbus, Ohio, December 9. — (Special Cor¬
respondence.) — Early last fall Chairman Wilder-
mjre, of the Public Utilities Commission, in a
slightly caustic rebuke to a member of counsel in
the Hocking Valley coal rate case, said: “At
present progress this hearing will not be over
until next year.” What was spoken in sarcasm
now seems likely to be almost, if not quite, ful¬
filled in fact. On Friday evening there was an¬
other adjournment, this time until December 16.
It was for the purpose of allowing plaThtiffs to
prepare rebuttal to the exhibit of Auditor Hudg-
son of the Hocking Valley Railway Company.
In view of the reference just made to the com¬
mission, this is a good place to testify to the evi¬
dent painstaking fairness of that body toward
both sides. The case has been marked by few
controversies over the incidental rulings of the
commission, and all reasonable leeway has been
granted in the matter of preparation and in the
admission of evidence. Relations between oppos¬
ing members of counsel have also been more
amicable than is usual in cases of like importance.
The exhibit of the auditor, a voluminous docu¬
ment, intended to refute the deductions of Mr.
Hillman, chief rate expert for the plaintiffs, was
introduced Thursday, the day being taken up with
its explanation on direct examination. As an¬
ticipated, the exhibit was not an original one
governing operating expenses, but a correction of
that compiled by Mr. Hillman. First was the flat
statement that the actual cost of hauling a ton
of coal from Nelsonville to Toledo, including
assembling and terminal expense, was sixty-seven
cents, instead of forty-seven cents, as claimed by
the expert in question. In accounting for this
discrepancy of twenty cents per ton, three prin¬
cipal errors were charged against Mr. Hillman,
as follows:
First, it was claimed that he took the cost
of operating the Nelsonville assembling yards
and applied it over the entire traffic of the Hock¬
ing road. Books of the company show that these
yards are used almost exclusively for the handling
of coal, and their cost, the railroad says, should
be charged to the expense of the coal traffic.
Second, he divided the cost of car depreciation
and repairs over all cars, foreign as well as com¬
pany cars. In this matter the company claims
that its books show that ninety-five per cent of
the repair cost goes to Hocking Valley equipment
alone. Third, he had figured the yard cost on a
basis alleged to be wrong, in assuming that eyery
car is handled only once in a yard, whereas it is
handled several times, and the cost per car
handling which he used is not the same as the
cost per car for yard charges.
The most vital point in the whole hearing is
Ik
Another detail of methods used to place reinforc¬
ing*. Some horizontal bars were bent downward
because in building* this structure the wall was
made slightly shorter than originally designed.
At the lower edge of the view is shown a por-
. tion of the brace wall form which extends the
full length of the construction, as shown on
the accompanying plans.
expected when Mr. Hillman, through attorneys
for the plaintiff, attempts to defend his exhibit
on the cross-examination. This was evidenced by
the request for time on which to get ready for
this feature of the case. Copies of the defend¬
ants’ corrected Hillman exhibit had been fur¬
nished the plaintiffs but a short while before it
was introduced.
The day previous to adjournment, Thursday,
■was utilized by the Toledo & Ohio Central in put¬
ting in its defense. Some sixteen exhibits pre¬
pared by various officers of the road were placed
in evidence. J. A. Stockton, chief engineer, testi¬
fied, with the aid of blue-print profiles, to the
greater physical difficulties in operating this line
as compared to the Hocking *Valley. As an in¬
stance, it was shown that the T. & O. C. has 190
curves between Corning and Toledo, thirty-eight
of which were in excess of three degrees, where¬
as the Hocking Valley, between Nelsonville and
Toledo, had but ninety, of which only seventeen
were in excess of three degrees. C. L. Gardner,
superintendent, explained by statistics in what
proportion, through a period of years, the ex¬
pense of operation in its relation to revenue had
been in favor of the Hocking Valley. The fiscal
year of 1914 showed this per cent to be 41.08
for the T. & O. C., as compared with the Hock-
ing’s .34.01.
J. B. Wagner, auditor, presented a corrected
Hillman exhibit, the method of treatment being
much the same as that of the auditing department
of the Hocking Valley, introduced the following
day, and which has been already explained. The
T. & O. C., being a minor defendant, there was
less detail to cover. General Freight Agent Cooke
went into the minutiae of switching, assembling
and terminal expenses, as well as the general
freight movement. It was stated that the T. &
O. C. had no assembling yards at Corning or
Chauncey, the points at which its Hocking coal
tonnage originated, but had to use the main line
in assembling, which necessitated delays and in¬
creased expense in getting out of the way of
trains. Of its total coal tonnage, 60.09 per cent
was from Ohio fields and 39.01 from foreign.
The cost per car of hauling coal from Chauncey
to Toledo was 68.82, instead of forty-seven cents,
as claimed by the plaintiffs.
The statement was made by Mr. Cooke that he
did not think West Virginia coal was supplant¬
ing that of Ohio, but if so there were reasons
for it that had nothing to do with transporta¬
tion, and he desired to discuss these reasons.
At this point he was stopped by the commission,
which had made a ruling early in the hearing that
no conditions not pertaining to transportation
should go into the evidence. Labor troubles and
bad financing had nothing to do with whether
or not a railroad rate was fair. Asked by his
counsel what in his opinion would be the effect
of lowering Ohio rates, Mr. Cooke replied that
it would throw confusion into the whole sys- .
tern of present eompetitive tariffs, and that inter¬
state rates would undoubtedly be lowered to meet
Ohio reductions. Mr. Arnold, of the plaintiffs,
quite adroitlj' drew the statement from the wit¬
ness that if rates outside of Ohio should be raised
it would necessarily follow that Ohio rates would
go up. In view of the recent raise of rates on
coal entering Ohio, which was decided upon at
a meeting of traffic men from different roads in
New York City, the plaintiffs were inclined to
seize this opinion as good capital, coming from
the general freight agent of a prominent Ohio
coal-carrying line. Auditor Wagner will be re¬
called for cross-examination on his exhibit after
the Hocking Valley defense is completed.
The defense of the T. & O. C. was in a way
two-fold. While combating any further read¬
justment of coal rates in Ohio, it sought to im¬
press the commission that it was less able to
stand any reduction than was the Hocking Val¬
ley. The T. & O. C. line still enjoys a $1 coal
rate to Toledo on Hocking coal, it not having
been a defendant in the action brought by the
New York Coal Company in 1910 which resulted
in a reduction of the rate on the Hocking Val¬
ley to eighty-five cents.
No intimation has yet been given by the com¬
mission as to its policy with regard to the hear¬
ing of the testimony of eastern Ohio operators
against the Baltimore & Ohio and other roads.
The fact that the original petition in the present
hearing made all Ohio roads defendants is
thought to give authority for withholding decision
with respect to the Hocking Valley and Toledo
& Ohio Central until the whole rate question is
thra.shed out, should the commission so desire.
The American consul at St. Michael’s, Azores,
writes The Black Diamond, under date of Octo¬
ber 14, about the coal situation there as follows:
“The only effect the war has had on the local
coal market, has been to raise the price of that
commodity from 39s 6d to 50s, but consumption
has increased rather than decreased as shipping
has increased considerably. The favorable loca¬
tion of the Azores in the Mediterranean and
Panama trade routes and the increased imports
of the Allies has contributed largely to this sit¬
uation. The island of St. Michael’s and Fayal
form important coaling stations. Many ships
which were forced to leave European ports with
little or no bunkers have put in here for coal
since the declaration of war.
“Business generally, of course, has been con¬
siderably affected. It has been exceedingly diffi¬
cult to import goods from Europe, and besides,
freights are unprecedented, causing increased
prices. Business men do not anticipate a change
for the better for some time to come.
“The prosperity of St. Michael’s in late years
has hinged largely on its pineapple industry,
representing an export value of $700,000 a year
in normal times. This industry has collapsed
since the elosing of the Hamburg market. Lon¬
don also bought in considerable quantities but
since the war has become an indifferent market.
As Europe will be greatly impoverished by the
war, it is difficult to see a return of prosperity
to the local pineapple grower for many years
to come.
“The range of coal prices since August, 1914,
is 39s 6d, 53s and 50s.
“In 1914 over 27,500 tons of coal, valued at
$181,736, were imported by the Azores; also
Welsh coal. In the first nine months of 1915,
already 38,000 tons have been imported, of which
S,000 tons is of American origin. An additional
order for 6,000 tons of American coal has been
placed for 1915 delivery.
“There have been no dock improvements.”
Barber’s Coal Pocket.
The very compact and modern coal pocket
shown herewith is that of Charles Barber, a coal
and grain dealer at Manlius, Illinois. It is twenty-
four feet wide, forty feet long, thirty feet high
and holds 300 tons when full.
Coal is received in hopper cars and is elevated
up into the pocket by a chain conveyor carrying
the coal from a concrete hopper under the tracks.
It is distributed to the different bins by spouts
or troughs.
The coal when loaded into wagons flows over
a screen at the loading spout, taking out all of
the screenings and dirt.
Mr. Barber says: “A coal pocket is the only
way to handle coal successfully and satisfac¬
torily.” It is true. Dealers operating and handling
coal through pockets experience less trouble,
make more money and are more successful than
Barber’s Pocket at Manlius, Ill.
the dealers without such efficient means of
handling coal, and who are forced to devote most
of their profit to shoveling and labor.
The pocket was designed and the machinery
furnished by the Gifford-Wood Company of
Chicago.
470
[December 11
THE BLACK DIAMOND.
How to Divide and Account for Retail Expenses.
Getting at Costs.
The Chicago Coal Merchants’ As¬
sociation is getting together a good
cost system. To do that it divided
the subject into six heads and ap¬
pointed a committee to handle each.
At a meeting last Friday, the gen¬
eral subject was discussed by Mr.
Hutchison in the paper here pre¬
sented. Thereupon ten coal dealers
arranged to employ these account¬
ants to work out a system for them,
and this will be available to other
members of the Association.
The form, reproduced with this article, is one
that if filled out, will supply the necessary in¬
formation to be used as the basis of the operating
accounts of any retail company. Of course, fur¬
ther detail may be obtained as desired.
The books and reports from which this state¬
ment is made up are so arranged that monthly
totals readily can be obtained. While it is im¬
possible, in a brief article, to outline the entire
system necessary, the blank presented will give
an idea of the book accounts, a larger portion of
which will be for actual cash expenditures and
passed through a voucher record.
While it is highly desirable to show all the de¬
tail required for an analytical comparison either
between months and years, or possibly between
companies, it is very essential to keep the book
records and reports simple and clear. This does
not mean that data must be curtailed but that
any change going through the accounts and which
is to be reflected in the operating statements,
must have a proper place or account in the books,
or vice versa. Any item necessary for the state¬
ment should be put through the books monthly.
If, in order to keep the record of all expenses,
‘Certified public accountant of Shepard & Hutchison,
Chicago, »
By George E. Hutchison.*
Everything Around a Yard Costs Some¬
thing — If the Retailer Is to Be Safe He
Must Charge This Into His Cost of
Doing Business.
the number of book entries becomes more numer¬
ous than would be the case when insufficient data
is entered, it does not complicate the records or
George E. Hutchison,
system, but merely increases the number of en¬
tries.
The writer recognizes the imperative necessity,
in drafting any retail system or forms, of recog¬
nizing the condition surrounding the operation of
small retail merchants, so that such small retail
merchants can avoid the necessity of keeping a
large office force. This condition can be met,
especially if coal merchants will arrange to have
a periodical supervision of their accounts by
some independent accountants.
Brief remarks will be made upon the elements
shown on this statement and it must be borne in
mind that these remarks can hardly cover all the
questions that may arise in the mind of each
reader.
The unloading expenses are, of course, in reality
a part of the cost of putting the coal in the yards,
and as such might be considered as a part of
the “Cost of Sales.” However, in considering
this phase of the situation, it cannot be denied
that in a .great many cases the labor of un¬
loading coal upon the yard of some coal dealers
is done by the use of the laborers employed
about the yard for general purposes. It then
becomes optional with the company keeping up
this form of expense account whether they desire
to separate the unloading expense from the item
marked “Loading coal.” This, of course, should
be done by showing on the payroll the propor¬
tion of time spent on unloading cars and loading
wagons or trucks. In some rail yards a certain
percentage of coal is Unloaded direct from cars
to wagons or auto trucks. The unloading ex¬
pense there becomes also a loading expense. In
such instances the expense can be divided between
unloadiag wages and loading wages.
Whenever cars are unloaded by men employed
for that purpose, either by paying a certain sum
per ton or by employing day labor, there is a
straight charge for unloading and such changes
can go through the records under accounts pro¬
vided for such purpose.
It is also conceded that certain charges for
maintenance of equipment, etc., are chargeable
to the expense of unloading coal but it may
become burdensome to ascertain these and in this
form they are considered in various “Repair and
Renewal” accounts shown in yard expense.
The usual expenses incident to the maintenance
of the yard are self-explanatory and require little
comment. However, the conditions and machin¬
ery will be different in different yards. As an
illustration of this one yard will be situated on
PROGRESSIVE COAL COMPArfY
Monthly Operating Statement
. 191
SUMMARY OP
OPERATIONS
December 1915
December 1914
lor. H)o 031,1915
Amnount
Per
ton
Ammount
Per
.\ranount
Per
Amnount
^er
SALES
COST OP SALES
GROSS PROFIT
YARD EXPENSE
DELIVERY EXPEHSE'
SELLING EXPENSE
GENERAL EXPENSE
TOTAL EXPENSE
NET PROFIT
ADD OTHER INCOldE
DEDUCT OTHER EXPENSES
NET INCOME
KINDS OF COAL
ANTHRA- Sinall Ekk
SAL
E S
- Large Egg
Ranee
Chestnut
Pea
POCA- Lump
- HKg
Nut
Run of Nine
All Other Coals
TOTAL SALES
ANTHRAC- Small Egg
C
0 S
T 0
p i
- L
E
<
- Large Egg
Range
Chestnut
Pea
POCA- Luidd
SkS
Nut
Run of Mine
All Other Coals
TOTAL
Demurrage
Shortage and
Shrinkage
■ TOTAL COST OP SALES
GROSS PROFIT
SHEPARD & HUTCHISOH, PUBLIC ACCOUIJTAHTS , CHICAGO RB.
PROGRESSIVE COAL COIX/.IIY
Monthly Operating Statement
. 191
December 1914
DeccDbcrl9l5
Apnl-Dea3l3.915
AprJL-DeCi3]
JM4
Ammount
Per
Ton
Ammount
Per
Ton
Ammount
Per
Ton
Ammount
lin
YARD EXPEt:Sl4
Unioadine iTages-
nav T.^hnr
Vera '.Vpcres-
i''orerjan
Loadinff Cool.
Oleaninff iflrd
Chute Lcaaintr
Rent
Hepa 1 r.ci-K.enewais Yara
^3.
icent
” " "
Pit
1 Pnnk#
t.R f
BuL
LTEht & rower SerYTcb”
^ -iiabliltv
Taxes & Licenses
Denreclstion
total
■ lir.T.TVKHV ffll’ENSK
Salaries A ffaires
Barn Forego n £ Ass ■ i:
•
Drive rs
Ueraaee t6 PhObyrtV
Rent
P^d z: Bedding
.ShoelniT
ter Chorres
vehicle License
Insurance-Fire
‘ -LlablillV
irS“Kenewals-^ap:o
“Fq:
: 1
♦
" -Rfl m
uenrociation nagon Lq'
T,t
" Auto KCU
nne ■
' p
GaRoline A Oil
TOTAL
BirEUSE
1
Salaries Salescan
I
CommlRsions “
Entertainment
Carfare
fixbense ^3uc^5:y
total
r.F.tlERAT. raPTllKK
Rxe cub Ives
n p rk R
roil ei 1 onR
Hpdt
JGTt“
Trave ilntz: £ EnteY’taln
Insuron cq
_
,
.
- T-.0-T.fl..J. _
SHEPARD & HDTCHISON, PUBLIC ACCOUNTAHTS , CniCAGO.
Item marked “All Other Coals” signifies that any other kinds of coal handled are shown in making up this form of statement.
No. 24]
THE BLACK DIxlMOND
471
an elevated road with a trestle and probably
hoppers for holding the coal. Another yard will
be a ground level yard in which the coal is un¬
loaded from the car upon the ground and hauled
from the pile. It then becomes evident that the
cost of labor involved in unloading cars and
loading wa,gons should be materially less in the
first class of yard. But, the maintenance of ma¬
chinery and hoppers plus depreciation on such
equipment will be an item in the first class of
yards not to be found in the second. Therefore,
such individual items are not susceptible to com¬
parison between these two yards, but the total of
the yard operations can be compared and from
the proper records kept it becomes evident that
a basis can be established which will give any
association information for the benefit of its mem¬
bers who desire to ascertain what the expenses
are upon different classes of yards.
In the section for “Delivery Expense,” provision
is made for both wagon deliveries and auto deliv¬
eries, and a comparison can be made between
the wages of chauffeurs and drivers ; also between
the costs of repairs of each and between the de¬
preciation on the two classes of equipment. As
an illustration, it might be stated that the cost of
gasoline and oil for auto trucks may be consid¬
ered as somewhat the same expense as the feed
and beddiag for horses. Further details, if de¬
sired, can be kept upon each auto truck and each
delivery wagon.
The amount of tonnage handled by wagon and
by auto trucks and by each individual wagon and
truck and the cost of maintenance of same is not
very difficult to obtain, as most yards have to
maintain some sort of a delivery sheet for the
information of the shipping clerk which will show’
the tonnage. The clerks in the main office can very
readily keep a record of the expense's of each
piece of equipment. This latter phase of the situ¬
ation is mentioned more particularly for occa¬
sional comparison ; it hardly becomes necessary tcf
go into this matter in such detail each month un¬
less desired.
In the section marked “Selling Expense” should
be charged those items that can be clearly con¬
sidered as a selling expense. The only item
that seems to require any particular comment
here is that marked “Salesmen’s Expenses.” This
is divided for the purpose of arriving at the
different divisions of this account, due to different
operating conditions. As an illustration, it might
be mentioned that one firm will employ a sales¬
man, and pay his carfare, entertainment, and other
expenses. Another firm may employ a salesman
who owns his own horse and buggy, or automo¬
bile, and will allow him a certain sum per month
for its maintenance, the other expenses remaining
the same. Another firm will allow a man a
stated expense amount per month, regardless of
how it is spent, and still another method might
be for the firm to furnish some sort of a vehicle
to the salesman and simply allow him an enter¬
tainment expense.
To be susceptible of comparison, these different
conditions must all be considered and due pro¬
vision made for them in making up the monthly
expense statement.
There is still another element and that is a
possibility of payin.g the salesman a salary, or com¬
mission, or both, and require him to pay his own
expenses. In order to be able to make a com¬
parison it is necessary to make some division to
take care of this and charge the necessary amount
to “Salesmen’s Expenses.” It is quite certain
that, in giving a compensation to cover salary,
or commission, or both, and expenses, some idea
of the amount of expense to be considered must
have been arrived at.
The “General Expenses” are those items which
may be termed “overhead expenses,” and are
usually a burden upon every business and I
think in most cases are capable of comparison as
they are usually based upon the amount of the
business transacted. It is quite evident that
a proprietor or proprietors of a small business
must consider their services at a certain value
every month, whether they actually take it in
cash or simply credit their accounts. Such serv¬
ices may be called “Executive Salaries” ; in other
cases salaries will be paid executive officers.
The problem of rent is one that has been wide¬
ly discussed by accounting authorities, and some
of the most able have ranged themselves upon
both sides of the question as to whether a prop¬
erty that is owned by the company should or
should not be taxed with a rental figure that
might be considered as payable if the company
did not own its property. For the purpose of
comparing expenses, as between various com¬
panies, it becomes evident that rent must be con¬
sidered. If interest is paid for money borrowed
to purchase the property, this offsets a rental
charge and really becomes equivalent to rent.
It will be noted there is a division of “Rent.”
This item is shown in “yard expense,” “delivery
expenses,” and “general expenses.” The varying
conditions surrounding different retail companies
require this.
Some companies will rent a barn to take care
of their teams or auto trucks, and have a straight
charge for same. Others will have a barn or
garage or both on the yard. In such instance
the “delivery expense” should stand a percentage
of rent.
Some companies with several yards have
straight rental charges in yard expenses. Others
with one yard with the barn or .garage, or both,
and office at the yard will have to charge a per¬
centage of rent to yard expense.
The “rent” charge under “general expense”
should be cost of office room paid when office
is rented or a percentage of total rent when
office is at the yard.
The remarks applicable to “rent” may arise in
treating such changes as “insurance,” “taxes and
light.” Taxes can be readily divided and are
set up on the books each month and credited to
“accrued taxes” until tax bills are received. In¬
surance policies are usually paid in advance,
charged prepaid insurance and can be so divided
as to cover different items and credited to pre¬
paid insurance.
Light bills may be rendered against each yard,
the barn and office or in case of one yard and
with office and barn at yard, are divided between
"yard expense,” “delivery expense,” and “general
expense.”
Sometimes some of these items such as light
and service in a small yard are so small it does
not pay to try to divide same.
The interest item could be discussed at some
length but it may be noted that where a reduc¬
tion in cost of coal is secured by borrowing
money to purchase at advantageous seasons such
a charge is clearly a part of “cost of sales.”
Where it is interest paid on investment in prop¬
erty, it is really a rental change, and where it
is interest on working capital, it may be con¬
sidered a “general expense.”
One of the important features is to ascertain
the profit made from delivered sales and from
yard sales — the latter being really sales to small
dealers.
A simple statement can be made to cover same.
The reports or sales record will be divided to
show these by making up two daily reports or
by having two sections in the sales record, to
show such sales and each class bears its expense
burden.
The cost of sales, i. e., cost of fuel is the
same per ton, and generally speaking, “yard ex¬
penses” and “general expenses” are chargeable
to each. Dealers’ sales in yard really carry no
delivery expense.
Income from outside sources or expenses ap¬
plying to operations outside of fuel transactions,
such as outside income from rentals or invest¬
ments, or an expense on property owned by com¬
pany but not used in fuel business, are shown
in summary of operations.
This form has been drafted to show the opera¬
tions from the first of current year up to end of
month. For purpose of illustration, December
has been used and the fiscal year has been con¬
sidered as April 1 to March 31.
New Proposed Railway.
The wholesale and retail coal trade of New
England are .greatly interested in a plan to con¬
struct a railroad from Schenectady, N. Y., to
Hloomsburg, Pa., which would link the Boston
& Maine Railroad with the coal fields of the
west. The plan is described briefly in a letter
made public recently by Gov. Walsh of Massa¬
chusetts which he received from R. B. Williams,
of Scranton, Pa. ;
“On account of the deep interest your adminis¬
tration has shown in the reorganization of the
Boston & Maine Railroad, I thought you might
be interested in learning of the followin.g project,
which would tend to largely benefit the people
of Massachusetts, and greatly increase the rev¬
enue of the Boston & Maine Railroad.
“There is under way at the present time, a
proposition to build a railroad from Schenectady,
N. Y., to Bloomsburg, Pa., following the Scho¬
harie, Delaware and Tunkhannock Valleys, giving
tliq lowest possible grade and the shortest dis¬
tance from the heart of the anthracite regions to
the New England states.
“Further, this railroad, by interchange, will
connect the New England states with the Erie
Railroad, the Delaware, Lackawanna & Western,
the Lehigh Valley and the Pennsylvania and
their western and southwestern tributaries.
Anthracite Shipments.
The shipments of anthracite for November,
191.5, as reported by the Anthracite Bureau of In¬
formation at Wilkes-Barre, Pa., amounted to
(>,297, S15 long tons, which establishes a new rec¬
ord for November shipments for the region.
Compared with November, 1914, the shipments
last month showed an increase of 368,929 tons,
and compared with October of this year they ex-
hibit a decrease of 208,677 tons.
The decrease in November, as compared with
October, was due to the fact that there were two
fewer working days in the later month— 23 days
in November, against 25 in October. The average
daily shipments in November exceeded those of
October.
The total shipments for the year to the end of
November are 2,458,125 tons behind the first
eleven months of 1914. This shortage does not
represent by any means the actual falling off in
the supply of anthracite for winter use. In
spite of repeated warnings, consumers this year
have not laid in their winter supply in advance,
n'ld retailers were equally laggard.
The statement of the Bureau is as follows :
NOVEMBER, 1915.
Buckwheat
Sizes Below
No. 1 and
Buckwheat
Total
Larger Sizes.
No. 1.
Shipments.
Philadelphia & Reading 1,002,455
161,396
1,163,851
Lehigh Valley. . .
. 1,049,374
140,729
1,190,103
Central of New
Jersey. 599,415
162,725
762,140
Delaware. Lacka.
& W. 799,234
172,155
971,389
Delaware & Hudson... 568,726
125,660
694,386
Pennsylvania . .
. 528,831
87,359
616,190
Erie . .
. 593,131
103,759
696,890
N. Y., 0. & W,
. 176,798
25,468
202,266
Total .
. 5,317,964
979,251
6,297,215
NOVEMBER, 1914.
Buckwheat
Sizes Below
No. 1 and
Buckwheat
Total
Larger Sizes.
No. 1.
Shipments.
Philadelphia & Reading 976,520
105,824
1,082,344
Lehigh Valley...
. 1,011,195
128,272
1,139,467
('entral of New
Jersey 643,833
118,064
761,897
Delaware, Lacka.
& W. 740.770
140,875
881,645
Delaware & Hudson... 552,605
86,287
638,892
Pennsylvania . .
80,373
595,819
Erie .
. 522,609
99,545
622,154
N. Y., O. & W.
. 187,460
18,608
206,068
TotM . 5,150,438 777,848
\"EAR 1915.
Buckwheat Sizes Below
No. 1 and Buekwheat
Larger Sizes. No. 1.
Philadelphia & Reading 9,022,347 1,336,593
Lehigh Valley . 10,654,288 1,249,817
Central of New Jersey 5,948,842 1,345,992
Delaware, Lacka. & W. 7,238,874 1,412,315
Delaware & Hudson... 6,241,002 1,124,987
Pennsylvania . 4,655,732 831,419
Erie . 6,077,511 1,144,046
N. Y., O. & W . 1,695,170 203,283
5,928,286
Total
Shipments.
10,358,940
11,904,105
7,294,834
8,651,189
7,365,989
6,487,151
7,221,557
1,898,453
Total . 61,533,766 8,648,452 60,182,218
YEAR 1914.
Buckwheat Sizes Below
No. 1 and Buckwheat
Larger Sizes. No. 1.
Philadelphia & Reading 9,684,729 1,359,223
Lehigh Valley . 10,794,140 1,287,270
Central of New Jersey 6,806,281 1,408,051
Delaware, Lacka. & W. 7,538,722 1,471,716
Delaware & Hudson... 5,739,236 932,353
Pennsylvania . 5,126,968 777,769
Erie . 6,316,849 1,248,699
N. Y., O. & W . 1,920,131 228,206
Total
Shipments.
11,043,952
12,081,410
8,214,332
9,010,438
6,671,589
5,904,737
7,565,548
2,148,337
Total . 53,927,056 8,713,287 62,640,343
COAL ON HAND AT TIDEWATER SHIPPING
FORTS, TONS.
November 30, 1915 . 610,661
October 31, 1915 . . . 625,821
Decrease . 15,150
The Statement of shipments of anthracite by
regions for the month of November, 1915, com¬
pared with corresponding period last year, is as
follows :
November — 1915. 1914. Decrease.
Wyoming . 3,745,422 3,489,818 *256,604
Lehigh . 735,499 772,539 37,040
Schuylkill . 1,816,294 1,665,929 *150,366
Total . 6,297,215 5,928,286 *368,929
Year — 1915. 1914. Decrease.
Wyoming . 36,081,403 37,186,422 1,105,019
Lehigh . 7,825,000 8,415,313 690,313
Schuylkill . 16,275,815 17,038,608 762,793
Total . 60,182,218 62,640,343 2,458,125
‘Increase.
The Stock of anthracite on hand at various tide¬
water shipping points on November 30, 1915, was:
Tons.
Port Reading . 44,040
Port i^ichmond . 153,070
Greenwich . 8,006
Canton Piers . 3,315
Elizabethport . 19,450
Port Johnson . 21,954
Soiith Amboy . 806,068
Perth Amboy . 63,868
Hoboken . .
Weehawken . .
Edgewater .
Newburgh .
Total . 610,661
472 _ _ THE BLACK DIAMOND. [December 11
First Aid in Oklahoma.
At first we did not have very much encourage¬
ment along this line. However, when Car No. 4
(H the Bureau of Mines was in Alderson the
latter part of 1914, we had trained in first aid
work between forty and fifty, and about eight
trained in rescue work. After the car left
Alderson interest in first aid and rescue work
died out until about three months ago, when the
writer took the matter up again with a number
of our young men and explained to them the use¬
fulness of this work, both at home and around
the mines, or wherever they were, and we soon
had several crews organizecl. Thursday night of
each week is set as meeting night with the fore¬
man of the Rescue Station at McAlester as in¬
structor. We now have three teams practicing
every Thursday night. I assured them that the
company would appreciate their efforts along
these lines and have given them all the encour¬
agement I possibly could, stating to them that we
would furnish all necessary supplies and that as
soon as they secured a certificate of proficiency,
in order to keep them in practice the company
would probably allow an hour’s pay each week to
each member of the team who attend the meet¬
ings and who would keep in training and put his
knowledge in use in and around the mines.
P. U. Malloy,
Superintendent Rock Island Coal Mining Co.
Alderson, Oklahoma.
D. L. & W.’s Sociological Work.
Editor Black Diamond :
With regard to first aid, rescue and sociolog¬
ical work being done by the coal mining com¬
panies of the anthracite region, would state that
we have in connection with our coal mines, or¬
ganizations of first aid to the injured and rescue
corps, etc., as follows :
First. We have at each of our collieries, and
each section of the same, where there is more
than one foreman, a first aid team, consisting of
six men, one of whom is selected as captain, and
another as a subject (generally a boy is chosen
as the subject). These organizations, in some in¬
stances, meet weekly for practice upon the sub¬
ject, treating him for all kinds of injuries with
which they have become familiar, or in which
they have been instructed.
The first aid teams at our collieries in Scranton
and vicinity are instructed by Dr. J. M. Wain-
wright, chief surgeon for our company, and chief
of staff of the Moses Taylor hospital. The first
aid teams for our collieries located in the Wyo¬
ming Valley, Luzerne county, are instructed by
Dr. D. H. Lake, assistant company surgeon.
These teams meet monthly at our district super-
iiitendent’s office at Kingston, Pa., and they have
formed an organization, known as “United First
.‘\id Corps of the D. L. & W. R. R. Co.” All of
the members of this first aid corps organization
are very enthusiastic in their work and show con¬
siderable proficiency in the same. These men
hold annually a first aid contest, which is con¬
ducted on the fifteenth day of August at some
I)leasure or picnic ground, with the result that at
the present time they have in their treasury about
fifteen hundred ($1,500) dollars, which they
expect to use later on in furnishing suitable club
rooms for their own personal use. The service
rendered by these first aid teams, while meeting
and practicing, etc., outside of working hours, is
entirely voluntary. The company at all times fur¬
nish sufficient material for practice, such as band¬
ages of all kinds, sterilized gauze and adhesive
plaster, and all other material necessary for
actual first aid work. The members of the first
aid teams contribute in no way financially to-
\yards maintaining and carrying on this work,
and,, if they enter into what is known as an
“inter-company” contest, by which they are re¬
quired to he from home or absent from their
; work for a day or more, the company pays them
their full time, and also bears the burden of ex¬
pense for traveling, hotel accommodations, etc.
Second. We have at each colliery a rescue team,
consisting of six men, one of whom is delegated
as a leader or captain. These men are selected
from volunteers and, generally speaking, the most
able and best appearing persons employed at the
various collieries are chosen. Their training and
preparation is in charge of a qualified person,
who has had some years experience in the use of
the rescue or oxygen breathing apparatus and
first aid work. They are thoroughly instructed
in the use of this important machine and its me¬
chanism ; disconnecting and connecting all parts
of the oxygen breathing apparatus, and after they
have become thoroughly acquainted wtih the same
they are trained in walking and running depend¬
ing upon the oxygen in the tanks for their breath¬
ing supply. They are also instructed with regard to
recharging these tanks with a fresh supply of
oxygen, and when they have been so trained with
regard to handling the apparatus, a room con¬
taining noxious gases, sulphur, or formaldehyde
is provided, in which they are trained in the work
of sawing timber, climbing up stairs, crawling
under tables and all other stunts imaginable by
the person in charge of the work, in an endeavor
to practice conditions under which the men
might be called upon to perform in actual work
following a serious explosion of gas, by which
the ventilating system has been destroyed and the
traveling roads wrecked to such an extent as to
make climbing and crawling necessary in con¬
nection with this important work.
Third. The company maintains within a short
distance of the district office at Kingston, Pa.,
three railroad cars, known as the “Rescue Car,”
“Hospital Car” and the “Fire Car.” The Rescue
Car is equipped with eight oxygen Draeger hel¬
mets, a sufficient supply of oxygen, what is
known as the fresh-air stretcher, which can be
carried by the helmet-men into places containing
noxious gases and the persons rescued can be
given oxygen while being conveyed to a place of
safety, also an abundant supply of oil and electric
safety lamps, a quantity of first aid material,
blankets and all other necessary equipment for
emergencies.
The hospital car contains six cots, necessary
stretchers, blankets and first aid material, which
in case of a serious accident can be brought into
play and used to good advantage to bring persons
injured to the Moses Taylor Hospital at Scranton,
if they desire to be removed to that institution.
The Fire Car contains all kinds of mine fire
fighting implements, which can be brought to
. any colliery within a short time and used ad¬
vantageously.
Fourth. The sociological work of this com¬
pany consists in a joint effort made with that of
the Y. M. C. A. at Wilkes-Barre in conducting
their District Mining Institute, of which a large
percentage of the members are employes of this
company. The company contributes two hundred
and fifty ($250.00) dollars annually towards the
maintenance of a mining school in connection
with this mining institute.
The Nanticoke District Mining Institute, to
which the company contributes annually $150.00
to the maintenance of the mining school, during
the past few years, has joined its efforts with that
of the Nanticoke school district, which is com¬
posed of intelligent and aggressive men, with the
result that at the enrollment for vocational
schools during the year 1915-16, about 1,200 em¬
ployes of this and other companies and mem-
i)ers of their families were enrolled and are now
attending these night schools. For instance, there
are enrolled in the sewing classes about 369 girls
and women.
Within the past few years we have also im¬
proved living conditions around our collieries by
improving dwellings occupied by employes. We
have constructed what is known all over the
country as the “Concrete City.” The company
maintains in the center of this village a play¬
ground, consisting of swinging bars, sliding
chutes, swimming pools, etc.
We are also building at present forty double
houses, constructed of concrete and brick, con¬
taining modern improvements, electric lights and
steam heat, etc., near our new Loomis colliery.
This village is already known as “Loomis Park.”
hi general, the employes of the D. L. & W.
R. R. Co., coal mining department, will compare
favorably in aggressiveness and intelligence with
any of those found in any part of the anthracite
region. They have joined heartily in all our
movements of “Safety First,” “First Aid” and
“Sociological” matters during the past few years.
The picture book we had published in 1912,
showing how accidents occurred, and how they
could have been prevented, has had a wide circu¬
lation among our men. Nearly 200 slides made
from various accidents that have actually oc¬
curred, acted and posed by our employes, have
also been exhibited and practical talks have been
given by our superintendents along these lines.
We have also recently had one of our assistant
superintendents work up a “Scenario,” or moving
picture, entitled “The Price of Carelessness,”
which has been shown free of charge at various
moving picture theaters to crowded houses.
We also have about completed a combination
moving picture machine and lantern, which can be
used for exhibiting these slides and films at the
homes of our employes. The company is now
arranging to employ men who will take these
pictures from house to house to instruct as well
as entertain our employes and members of their
families during the long winter evenings.
R. A. Phillip, General Manager.
Scranton, Pa.
Pay of First-Aid Teams.
Editor Black Diamond. — At Midvalley and
Maryd collieries we have a set rate per hour
that we pay the first-aid teams for every hour
they put in on first aid practice work.
At J. S. Wentz & Company, Hazle Brook, we
pay part of their salaries.
At Upper Lehigh Coal Company, Upper Le¬
high, the first-aid team is not paid' anything, but
they do not contribute anything toward the ex¬
penses ; the company pays for all the material,
supplies, etc. T. E. Snyder,
General Manager, J. S. Wentz & Company, Hazle¬
ton, Pa.
First-Aid Work.
The first-aid work of this company is under
the direction of a surgeon specially employed for
the purpose. Lectures and instruction are given
at stated meetings throughout the year in the
auditorium of the company’s office building at
Wilkes-Barre. About September 1st we hold an
annual field day, at which the different teams
compete and bronze medals are awarded to the
members of the winning team. Following the
contest luncheon is served. The attendance, in¬
cluding members of the teams, certain employes
who have shown particular interest in the work,
officers and guests, totals about eight hundred.
The work is voluntary on the part of the em¬
ployes. The expense of the field day exercises is
borne by the company.
With reference to rescue work, this is under
the direction of a man formerly employed in
our mining engineering department and who,
therefore, has some general knowledge of condi¬
tions in and around the mines. Instructions and
demonstrations in the use of apparatus are given
at stated intervals, so that, at the present time, no
less than thirty men at each operation are 'thor¬
oughly familiar with the rescue helmet and pre¬
pared to use same in case of necessity. This
work is also voluntary on the part of the em¬
ployes. C. F. Huber,
President and General Manager, Lehigh and
Wilkes-Barre Coal Company.
Accident Reduction Contest.
Editor Black Diamond. — We have twenty-six
regularly organized first-aid teams at our mines
and breakers. Our rescue car foreman is also
head of the first-aid work. About one-third of
the total number of men making up these teams
meet on alternating Monday nights, for two
hours’ instruction and drill by the rescue car
foreman and the physician in charge. For this
instruction work the members of the teams are
paid twenty-five cents per hour and give free trol¬
ley tickets to and from the meeting place. Each
team is given two hours’ per week practice work
during working hours, at the rates of pay for
their regular occupations.
None of our men contribute financially to-
No. 24]
THE BLACK DIAMOND
473
ward the maintenance of the first-aid teams ;
every item of expense is paid by the company.
Each year, on the last Saturday in August, we
hold a first-aid contest. To the winning team a
handsome loving cup, suitably engraved with the
winner’s name, is presented, and held until the
next annual contest.
In addition, the first, second and third highest
teams are given cash prizes of $25, $15 and $10
respectively.
Our mines are divided into five districts. We
keep a very detailed record of all accidents, and
the length of time in each case lost by reason of
injury. The total amount of time lost by the
employes due to injury is divided by the pos¬
sible working time of all employes, and percent¬
age figures are obtained. These are made up
monthly and the statements distributed among
our own men. At the end of the year, the district
having the lowest percentage of time lost, or, in
other words, the greatest efficiency in time lost
and therefore accident prevention, is presented
with a handsome loving cup, suitably engraved
with the name of the district, and held for one
year. Our fatal accidents are given an arbitrary
value of 365 days, while all other accidents carry
the actual number of days of disability.
W. G. Whildin,
Mining Superintendent, Lehigh Coal & Naviga¬
tion Company.
First-Aid Department.
Editor The Black Diamond;
The first-aid work of the Colorado Fuel & Iron
Company is looked after by the local doctors at
our mines. We issue a first-aid certificate to all
our employes who attain a proficiency necessary
to pass examination by local surgeons. The op¬
portunity to participate in contests has served as
some stimulant.
Four years ago we had a contest at the Las
Animas County Fair and the captains of teams
winning prizes ’were given a trip at company ex¬
pense to the Pittsburgh Training Station and ex¬
hibition given at Forbes field, November, 1911.
This year we allowed the four camps in Las
Animas and Huerfano counties having the high¬
est number of trained first aid men to send a
team to compete for valuable prizes offered at
our field day meet at Trinidad, August 14th.
We are now arranging to furnish buttons to all
our employes who complete a course of training
in first aid.
We have been able to keep up the interest in
this way, and up to date the work has been en¬
tirely voluntary and employes have not con¬
tributed financially towards its maintenance.
Our training in rescue and helmet work is
carried on by sending around our rescue car
from camp to camp, under the charge of an ex¬
pert in this kind of work. At intervals the gov¬
ernment car also goes around and our men take
examination under the government officials and
receive certificates for training in helmet work.
Yours very truly,
E. H. Weitzel,
Manager, The Colorado Fuel & Iron Company.
C. W. Babcock Dies.
Denver, Colo., December 9.— (Special Corre¬
spondences) — Charles Wesley Babcock, second
president of the Rocky Mountain Fuel Company,
died at his residence in this city, Friday morning,
December 3d, of asthma, with which he has been
afflicted for the past twelve years.
Mr. Babcock was one of the most prominent
coal men in Colorado. When he came to Denver
twelve years ago he reorganized the Standard
Coal Company and became its active head. Foup
years ago the Standard was merged with several
other companies to form the Rocky Mountain
Fuel Company. He was made a vice president
of the new corporation at the time of its or¬
ganization.
In that position, in spite of his ill health, he
carried a tremendous burden of responsibility at
all times. Refusing almost every opportuiiity for
rest and recreation, he carried his double burden
constantly until a few days before his passing.
Mr. Babcock was forty-nine years of age and
was formerly engaged in the shoe manufacturing
business in Philadelphia, which he gave up for
the benefit of the Colorado climate. Pie was
married in 1889 to Anna R. Hiding of Phila¬
delphia, and is survived by her and two brothers,
George W. Babcock of the Philadelphia Centenary
church and William A. Babcock of Baltimore,
both Methodist ministers.
Funeral services were held from the family
residence last Sunday, conducted by Dr. Orien
W. Fifer, pastor of the Warren Memorial church.
of which he was a member, assisted by Dr. Forest
Craft. The remains were interred in Fairmount
cemetery.
Death of J. M. Dodge.
James Mapes Dodge, chairman of the board
of the Link-Belt Company, died at his home in
Philadelphia, December 4, 1915.
He was born June 30, 1852, at Waverly, N. J.
His grandfather was Prof. James J. Mapes, a
noted chemist and scientist, and his mother, Mary
Mapes Dodge, a well-known author for many
years editor of the St. Nicholas Magazine.
Mr. Dodge spent three years at Cornell Uni¬
versity and a year at Rutgers. At the latter in¬
stitution he took a special course in chemistry
under the late Prof. George PL Cook, state geolo¬
gist of New Jersey. After spending a short time
at the Morgan Iron Works in New York City, he
entered the .shops of John Roach, the shipbuilder,
at Chester, Pa., where his marked mechanical abil¬
ity and ingenuity brought him rapid advance¬
ment. During the three years at the Chester es¬
tablishment he was successively journeyman, fore¬
man and superintendent of erection.
James Mapes Dodge.
Shortly after the Centennial at Philadelphia,
in 1876, he left the shipyard, and after several
years of experience in the east, went to Chicago.
It was here that he formed the acquaintance of
William D. Ewart, the inventor of the Ewart
link-belting, and soon after he joined hands with
Mr. Ewart and his associates in the development
of the chain business.
At that time, about thirty-five years ago, the
application of chains to power transmission was
exceedingly limited, and their use in elevating
and conveying machinery was practically un¬
known. The Ewart chain blazed the way for a
new industry, and Mr. Dodge and his associates
were quick to seize the opportunity. Mr. Dodge’s
early work was confined principally to develop¬
ment and manufacture, and here his genius had
full play. New chains, new methods of manufac¬
ture, and new conveying and elevating appliances
were brought out in rapid succession.
After this period of development Mr. Dodge
went east and entered the partnership of Burr &
Dodge of Philadelphia, for the exploitation of
the Ewart chain and its allied interests. Out of
this partnership grew the Link-Belt Engineering
Company, in 1888, and after the organization of
this company, Mr. Dodge carried out his idea of
development along strictly engineering lines. A
highly specialized engineering staff was developed,
a scientific study was made of the characteristics
of the materials to be handled, and special appli¬
ances were invented to meet varying conditions.
Machines grew from capacities of thirty tons
per hour to capacities of 600 tons per hour, and
from simple problems solved by detached ma¬
chines, the company expanded its field to the
planning and arranging of works to secure the
most economical and efficient handling of both
raw and finished product under guarantees of ac¬
complishment. In all this development Mr. Dodge
was the creative and guiding spirit.
It was in 1889, after having become thoroughly
acquainted with the needs of the anthracite coal
industry, that Mr. Dodge developed the boldest
and perhaps the most original of his inventions.
This was his system of storing anthracite coal
in large conical piles, and reloading it by ma¬
chinery — accomplishing this result with little la¬
bor and practically no breakage. The invention
was so complete, and yet withal so simple, that
it is still without a rival in the field of anthra¬
cite coal storage.
When it is considered that this system reduced
the cost of storing coal from thirty and often
forty cents per ton per round trip to five cents,
it is evident that the saving effected on the 5,000,-
000 tons handled by this system annually has
been a large item.
Fertility of invention and mechanical ingenuity
are rarely coupled with a high order of executive
ability, yet such is the combination of qualities
that has brought success to Mr. Dodge, who, as
an inventor, had the distinction of being men¬
tioned in patent office reports among the few who
had been granted over one hundred letters patent,
and as an executive had won success as the presi¬
dent and active managing spirit of such highly
successful industrial engineering corporations as
the Link-Belt Engineering Company and the
Dodge Coal Storage Company (later called the
J. M. Dodge Company). He was made president
of these companies in 1892, and chairman of the
board of the Link-Belt Company when it was or¬
ganized in 1906 as a merger of the allied com¬
panies — the Link-Belt Engineering Company, Phil¬
adelphia; the Link-Belt Machinery Company,
Chipgo, and the Ewart Manufacturing Company,
Indianapolis, at which time Charles Piez became
president of the Link-Belt Company.
.Among Mr. Dodge’s important inventions and
improvements were those relating to the construc¬
tion and manufacture of the link-belt silent chain,
its bushed joint being the most essential element
in the durability and efficiency of the chain.
Though for many years a large employer of
men. Air. Dodge has never met with any strikes
or other labor difficulties. He was deeply inter¬
ested in the personal welfare and advancement of
his employees, and a conspicuous leader in the
general introduction of the best elements in “sci¬
entific management,’’ having the double purpose of
producing greater efficiency in the mechanical and
human equipment and greater pay with shorter
hours and improved conditions for the men. He
was closely associated with Frederick W. Taylor
in the accomplishment of remarkable results for
the benefit of both employers and employees, in a
wide circle of industries. His influence was al¬
ways toward the development of self-help, initia¬
tive, ambition and responsibility in the men, and
of a spirit of fair play and humanitarianism as
real business assets in the many employers who
recognized Mr. Dodge’s leadership in modern pro¬
gressive methods of shop management.
Always affirmative in his views, he was fertile
in suggestion and quicker to point out the better
way, or the way to improve, than to condemn or
discountenance. He was encouraging, optimistic,
and a constant inspiration to those with whom he
came in contact, public spirited, a leader in vari¬
ous societies and clubs of which he was a mem¬
ber, such as the American Society of Mechanical
Engineers, of which he was at one time president ;
.American Academy of Fine Arts, Franklin Insti¬
tute, Union League Club, New England Society,
Engineers’ Club, etc.
America’s Shipbuilding Boom.
H. L. Ferguson, president of the Newport News
Shipbuilding and Dry Dock Company, of New¬
port News, Virginia, who was in New York
this week said :
“The American merchant marine is growing
very rapidly. It is one of the most remarkable
growths I ever saw in the business. The tonnage
of American-built ocean-going ships is about
1,750,000. There are under construction now
more than 500,000 tons in ships, more than was
ever before in the process of being built at any
one time in the history of this country. These
ships are better and larger than .A.merican firms
have ordered in the past. When the war started
we had just one lone merchant ship building
at Newport News. Now we have sixteen and
would be building as many more if we had the
capacity.
“1 know of 120 modern, ocean-going merchant
ships now lieing built in .America for Americans,
and there are probably more. Before the war
there were just twelve being built. This goes
to show what Americans will do when they get
started, and at the present rate in five years
.American tonnage will be doubled in American-
built boats. That doesn’t take into account for¬
eign-built ships that may come under our fla.g.’’
474
[December 11
THE BLACK DIAMOND.
Ft;BI.ISHED EVERT SATURDAY BT THE
BEACH DIAMOND COUPANT.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United _ States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postofHce as second-class matter.
Address all communications to
THE BEACH DIAMOND COMPANY (INC.)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, December 11, 1915.
INDEX.
Special Articles.
Page
What Is a Proper Price for Coal After April 1st?. . 465
Hex Company Sold . 466
Six Reasons Condemn the Rate Advance . 467
Tying Yourself Not to Re-engage in a Business. . • • 467
Permanent Coal Bins of the Indiana Harbor Lumber
& Coal Compa.ny . 468
Hocking Valley Coal Rate Hearing . 469
Trade at Azores . 469
Barber’s Coal Pocket . 469
How to Divide and Account for Retail Expenses.... 470
Anthracite Shipments . 471
New Proposed Railway . 471
Mine Clearing House . 472
C. W. Babcock Dies . 473
Death of J. M. Dodge . 473
America’s Shipbuilding Boom . 473
Editorial . 47 1
News Local to Chicago . 470
Facts Which Determine Our Export Prospects . 477
Market Reports.
General Review and Chicago . 478
Pittsburgh, Duluth and Twin Cities . 479
Cincinnati, Birmingham and Denver . 480
Cleveland, St. Louis and Indianapolis . 481
New York . 482
Philadelphia, Buffalo and Omaha . 483
New England, Baltimore and Detroit . . 484
Hocking Valley . 1.5
Colonel Rend’s Legacy
When W. P. Rend died he left a legacy
to the coal trade which is far greater and
far more important than that which he left
to his own children. It is this : He left, as
a result of his experience, a policy accord¬
ing to which coal can be made profitable.
The only misfortune is that this legacy can¬
not be put in trust so that the beneficiaries
'Will be sure to get the rewards of it and
hence will be prevented from squandering it.
Col. Rend’s legacy-policy may be ex¬
pressed in these terms : There are two
stages in business. The first stage is when
a business is small. Then it can and really
should be dominated by an individual. The
' second stage begins when a business has
grown to such size that it recjuires an or¬
ganization. There is a very clear dividing
line between the two. The difficulty always
arises when a business is about to pass from
one to the other. If the operator fails to
recognize the arrival of that time, he con-
• demns his business to quick decay and de¬
struction. If he makes an ineffectual at¬
tempt to continue the old personal con¬
trol into the zone where only an organiza¬
tion can work the result is inefficiency and
hence partial rather than full rewards.
-Another expression of Col. Rend’s legacy-
policy is as follows : As it is with individ¬
ual businesses, so it is with industries. Every
industry has its time when many personali¬
ties must express themselves. But, after
the first development has been effected,
there is need for an organization to supplant
the individual. The difficulty arises because
but few industries recognize when one
period is ended and when another era begins.
However, failure to recognize the time and
need for change brings quick destruction
and rapid decay. Ineffectual attempts to
transfer the industry from one period to
another mean less than full realization of
the possibilities.
While these things may be recognized as
truisms touching business concerns and even
whole industries, the question may be asked :
How did it happen that Col. Rend left such
an important legacy as this policy to the
coal industry? What was there in his per¬
sonal experience which taught such a les¬
son ?
Everyone recognizes that he was a bril¬
liant coal man. Perhaps for that quality he
had np superior. Also, he was essentially
an individual. It is given to but very few
to be more so. He was not, however, an
organizer. In all his fifty energetic years
in the coal business he left no organization
as an expression of his genius. The only
thing he did leave was a number of individ¬
ual enterprises. This fact “places” the
man. Col. Rend was clearly an individual
and a pioneer.
When there was a need to execute a bril¬
liant coup by which he opened a new coal,
a new series of mines, or a new market, no
individual coal man could do the work bet¬
ter. In this respect his work was a trifle
spectacular — he was something of a show¬
man. He could make a dash into any coal
situation and illuminate it in such a way
that evervone could see its possibility. This
was particularly true about a mining held, a
new market, or a labor situation. When any
branch of the trade was new he could make
a profit out of it.
The instant, however, it came down to the
hard detail work, which required entrusting
jurisdiction and powers to others — where it
required close organization, in a word — it
is a matter of record that he began to fail.
Col. Rend seems to have recognized the
one place wherein his strength lay. He de¬
voted himself to that form of activity ex¬
clusively. He never attempted those things
the theory of which he understood thor¬
oughly, but the practice of which he was
not by nature equipped to undertake. For
example, he opened up mines in Ohio and
by brilliant exploits made that coal known
throughout the west and northwest. This
was a work of development and exploita¬
tion for which he was pecularly fitted. When
he had done this pioneer work and when
there came to be a demand for an organiza¬
tion to handle the new mines, he sold out
to the Sunday Creek Coal Company. There¬
after he went to Macdonald, West Virginia
and duplicated his earlier exploit of opening
that field only to sell out to the Pittsburgh
Coal Company. For a third time he went
further back into the coal field and having
duplicated his brilliant record sold out to
the Berwind-White Coal Mining Company,
lust prior to his death he had opened mines
in the Franklin county field of Illinois. He
was ready to sell to any interest which
could insert an organization instead of his
])ersonality.
The legacy, briefly put, which Col. Rend
left is his advice to coal men to change their
point of view toward their company and
especially to know when to take on more
and when to let go. He recognized that
business is an impersonal undertaking. He
governed it by impersonal rules. Inci¬
dentally he left a sizable fortune as a re¬
sult of following his own rule of doing
what he knew he was fitted to do.
The average coal man rather than accept¬
ing his view that connection with any coal
venture is essentially a temporary arrange¬
ment, looks upon a venture in the business
about the same way that he, being orthodox,
looks upon taking a wife- — to have and to
hold until death do them part. Col. Rend
developed the business as he would a child —
to nurture it until the age of maturity and
then to turn it over to some one else. The
average coal man marries his business and
looks upon it the same as he does upon his
wife — as something to stay with him until
he or it dies ; he is never sure which is going
to pass on first.
Running Into Complexities.
( )ne of the shrewdest coal operators in
the West made the causal comment the
other day that we are beginning to Ger¬
manize the coal !)usiness far faster than
most of us realize. The context which ex¬
plains the remark was a discussion of the
extent to which we are getting away from
the belief that coal in its natural state is
a merchantable product like potatoes and
apples, and are coming to look upon it as
nothing more than a raw material which,
to be made valuable, must be made over.
So long as we clung to the old idea that
coal was a finished article of commerce, we
were interested only in coal lands, coal
mines, and the means of transporting and
distributing the product. The minute we
begin to realize that it is a raw material
requiring a manufacturing process, we be¬
gin to get interested primarily in coke
ovens because coking in some form is the
first step toward the completely manufac¬
tured product.
As this operator implied, other countries
than America came to this conclusion
about coal long before we did. The his¬
tory of the development is rather intricate
but Belgium seems to have lead in the
production of by-product ovens with its
Solvay process. It was followed by Ger¬
many with the Koppers and other proces¬
ses. Now America is using all of the for¬
eign patents and is developing some of her
own. We are beginning, as a matter of
fact, to get the same multiplication of the
types of oven used that we formerly got
in the matter of additions to mine equip¬
ment. Candidly, we are beginning to face
the same danger of overdoing the coke
business that we fell into when we over¬
did coal production.
The coking of coal is not as we assume
now, an end in itself ; it is merely a means
to an understood end. The act of coking
is merely getting ready to do something
more important. By it we divide the fuel
mixture into two parts — coke and gas.
Each one of these is a crude product. The
coke is supposed to support the fluxing
l)roces.s of the metallurgical industry. The
gas is supposed to supply the light and the
efficient fuel for cooking required by mod¬
ern cities.
At that point, however, we begin a sub¬
division of both subjects. The gas is too
No. 24]
475
valuable for all of it to be burned for illu¬
minating purposes or for cooking. There¬
fore, we divide the gas, taking out first the
tar, which is capable of being split up into
about 150 by-products, and second, some
other ingredients.
When we produce all the gas that mod¬
ern cities require, and when we take all of
these by-products from the gas, we are
likely to over-produce those by-products
because we have not made a market for
them.
Also, when we produce the requisite
volume of gas, we over-produce by far, the
amount of coke that is needed for metall¬
urgical purposes. We thus have left a
great quantity of coke for which a market
must be found.
The difficulty, at the minute, is that we
have not gone beyond the stage of manu¬
facturing. That is, there has been no
sensible effort in America to develop the
market for by-products ; we have not de¬
veloped even the process for their manu¬
facture. In the distribution of the coke,
we are going on the dangerous assump¬
tion that instead of the fuel being made
to fit the household conditions, the house¬
holder should be educated to use a fuel pri¬
marily designed for metallurgical purposes.
The people can be educated, of course, to
use coke in time, but a product which de¬
pends for its popularity upon skillful firing
by the whole body of consumers is in a
dangerous position. It would be infinitely
easier and less expensive to change the
manufacturing process.
By the same token, to manufacture by¬
products in the hope that somebody will
learn how to use them and hence come to
buy them, may be an example of American
enterprise, but it is hardly intelligent.
If we admit, which we must, that coal
is no longer a natural product and that it
becomes valuable only when it is turned
into a manufactured product, we instantly
see the necessity to change radically our
whole attitude towards its manufacturing
process.
It is suggested on one hand that we
must diversify the manufacturing pro¬
gram. That is, we can no longer assume
that the same coke which is valuable for
metallurgical purposes is equally valuable
as a household fuel. We must, if the
records of retailers are dependable, change
the manufacturing process so that we get
enough coke for metallurgy and then pro¬
duce a domestic fuel which will bring more
than one repeat order in twenty-five sales
and more than one permanent customer
out of fifty who have used the fuel. That
is, we must emancipate the people from a
smoking coal without asking them to be¬
come expert firemen.
In the by-product department, we must
not only diversify our manufacturing pro¬
gram to produce many things, but we
must also carry on a merchandising cam¬
paign that is going to find a market for
those things. That market is here and
abroad. It is an essential part of the true
function of the coal trade both to find
the market and to manufacture products
which will satisfy it.
Thus, the instant we step over the line
which divides mere coal production, as we
know it today, from the manufacturing of
coal, as we must know it tomorrow, we
get into an entirely new zone where old
methods must be forgotten and new ones
devised.
THE BLACK DIAMOND.
What Shall the Price Be?.
We recently reported the fact that two
coal producing companies of some size re¬
fused to renew contracts callitig for coal
after the first of next April at an increase in
price of twenty-five cents a ton over that
called for on existing contracts. The ex¬
planation of one of these refusals is that
the coal company had been selling its prod¬
uct on contract at a loss. Its refusal to
sign up at a higher price merely indicated
that it insisted upon a profit on that piece
of business in future. The explanation of
the other incident is that the operator in
question expects very much higher prices to
prevail in the future.
Most coal men, in commenting upon the
attitude of the second operator, say that he
is very foolish because he is planning for
something which really cannot happen.
Waiving the objection of these other oper¬
ators aside and assuming the optimistic at¬
titude of the condemned operator, suppose
we inquire what would happen if for any
reason prices should go up that much. Our
belief is it would prove one of the greatest
disasters of the business. Of course, it
would be very pleasant for the coal oper¬
ators for one year to get an increase in
price of twenty-five cents a ton. If the
operator were in business for only that one
year, and if he expected to retire from it
or die thereafter, that additional profit
would be delightful. However, all mining
companies are in business for more than a
year. Some of them have mapped out their
plans for fifty years to come. They cannot
consider the market, therefore, from the
standpoint of 1916 alone ; they must look at
it now for every year up to 1966. The
question then is not, “would it be pleasant to
make twenty-five cents a ton more in 1916,”
but, “what would be the influence of that
l)rice on business in 1917?”
Everyone will admit that an abnormal
price for next year would bring about an
abnormally low price for the following year.
This is so for the simple reason that every
man would try to double his capacity in
order to get that higher price on twice the
amount of business that he is now doing.
Thus increased production would do two
things at once. It would kill off the rise in
price and thus defeat the present hope of
the operator. It would involve him in an
unending succession of losses in future due
to excessive competition.
The Machinery Age.
Some years ago an eminent publicist, who
was concerned with the theory of publica¬
tions as well as the mere fact of publishing,
observed that:
“No industry ever becomes important to
the publisher until it has passed through the
primary stage and has reached the ma¬
chinery stage and, therefore, has learned to
produce cheaply because mechanically. The
steel trade reached that point a long time
ago and, therefore, was interesting to the
])ublisher. The railroad business always
has been there and, therefore, has been in¬
teresting to the publi.sher. The coal busi¬
ness is just ai)proaching that point and,
therefore, is beginning to be interesting to
the publisher.”
This growing publicity does not mean so
much to the coal man as does the fact of
the expanding use of machinery in coal
production and distribution. If, as the pub¬
lisher indicated, coal is moving into the
mechanical stage, it is time for the coal
men to think carefully what have been and
are likely to be the influences of machinery
upon the profitableness of the coal business.
Machinery is used in the production of
anything for only .two purposes. One is to
lessen the production cost by using one
machine in substitution for several workers.
The other is to make one producing plant
get out more coal and, therefore, to double,
triple, or even quadruple the output.
Up to now quite a great many mechanical
appliances have been introduced into the
coal business. The first was a hoisting en¬
gine to supplant the old hand windlass. The
second was a machine to undercut the coal,
supplanting the man who did it with a pick.
The third was shaker screens to make the
sizing more exact, etc.
Through all of these many changes one
thing has remained true. With the intro¬
duction of every mechanical appliance, pro¬
duction has been increased, competition has
been multiplied and the profits of the coal
business have receded to the vanishing point.
We are accustomed to judge the future
only in the light of the past. The past has
meant that the use of machinery has brought
a progressive destruction of coal profit. If
we look into the future, therefore, it is one
with a grave concern because a multiplica¬
tion of machinery means that we shall pass
over the line which divides profit and loss
and come to occupy a position where as¬
sured loss is the inevitable portion of the
coal trade.
Under the circumstances, the publishers
may rejoice in the fact that the coal is going
into the mechanical stage because he thereby
gets a new topic, but the coal operator looks
upon it with something more than fear.
Our Foreign Trade.
The markets of the world are not to be
taken by conquest. They must be won and
held by the administration of the same busi¬
ness principles on which our domestic trade
is founded — -superior goods, superior serv¬
ice. uniform trade dealing, unfailing re¬
liability.
I have complete confidence in the ability
of the American business man to compete
with anybody, anywhere, on any terms —
when he really sets out to win.
The trouble is with us that we have not
cared. Profits at home have been too easily
made to supply the necessary stimulus to
the search for profits abroad. Our own
country with its natural wealth has offered
so rich a field that the foreign field has
seemed less attractive by comparison, and
if we in the past have viewed with com¬
placency the greater progress of others in
the winning of world markets, it has been
because right here at home were more gen¬
erous rewards than could be found over¬
seas.
But we are facing changed conditions.
Our commercial future is not as an ex-
y^orter of raw materials and the products of
the soil. More and more we are consuming
our raw materials at home. More and more
we are learning the wisdom of marketing
not merely these crude materials of rela-
tivelv small value, but finished materials to
which have been added the relatively large
value of American-paid labor. — C. L.
Dering, president of the Chicago Associa¬
tion of Commerce in an article in the Chi¬
cago Post.
476
THE BLACK DIAMOND
[December 11
News Local to Chicago.
W. C. Hill, vice-president of the
Chicago & Carterville Coal Company
makes a statement which the retailers
will do well to keep iir mind. It is in
substance as follows :
“Some retailers are sure to be dis¬
appointed this year. In other years
they have been accustomed to delay
buying until the last minute. W hen
they needed coal, they sent an order to
the jobber at the nearest reconsigning
point. The jobber usually had the coal
on hand and could make shipment im¬
mediately. The retailers in other
years were thus able to adopt a care¬
less attitude towards the coal supply,
and not suft'er as the result, because
the operators in those days were in
the habit of sending coal on consign¬
ment to every distributing point.
“This year the operators are pro¬
ceeding on information rather than on
guess. They are not mining coal un¬
less they know there is a market for it,
consequently they are not shipping
anything on faith to reconsigning
points.
“However, the retailers apjiarently
are under the belief that the situation
will be the same this year as it always
has been heretofore. They believe
they are going to get coal on a minute’s
notice from the nearest recognizing-
point. On the contrary, the coal
which is unsold is held at the mines.
If the dealers depend upon getting coal
from the reconsigning point, they are
going to be disappointed wdien a cold
snap comes.’’
Col. T. N. Hordue of Castner, Ciirran & P>ullitt
left on last Saturday for a trip to New York
where he spent the better part of this week.
George Lawson, until recently connected with
the Clarkson Coal & Dock Company as a salesman
in the northwest, is spending a short time in
Chicago.
Henry E. Patrick, general sales agent of C. M.
Hoderwell & Company returned the first part
of this week from his trip into the northwest.
J. S. Chipman, cashier in the office of C. L.
Derin,g of the S. C. Schenck Company, died Fri¬
day morning at his residence, 6925 Prairie avenue.
He was taken down with an attack of pneumonia
some days ago.
F. C. Honnold, general manager of the Chicago
& Big Muddy Coal Company, returned on Thurs¬
day of this week from a trip into Southern Illi¬
nois and Missouri, where he was making an in¬
vestigation of railroad conditions and studying
the car situation.
The various coal associations in this territory
have now up three matters of freight rates which
are going to command considerable attention in
the coming months. The first of these is the
intra-state rates on coal in Illinois, it being the
effort of the railroads to get within the states
the same rates that were allowed them by the
Interstate Commerce Commission in the recent
western advance rate case decision. The Illinois
commission has definitely decided to suspend
these rates and an elaborate hearing is therefore
assured. The operators also are going to try
to have set aside the decision of the Interstate
Commerce Commission allowing an increased
freight rate on coal, which increase was decided
upon when the commission handed down its west¬
ern rate advance decision. It is rather expected
that it will take some time before this matter
can be heard by the commission. It is possible
that in the next few days a formal protest will
he made by the various associations against the
increased rates from Indiana to the Chicago gate¬
way and from Illinois' through Indiana to the Chi-
ca.go gateway, this advance being five cents a ton.
The understanding is that definite action in this
direction will be taken within the next week.
The second informal dinner of the Kantislma
Club was held at the Auditorium Hotel on Tues¬
day night of this week. The program, was as
diversified as it was on the occasion of the first
informal dinner. As indicated by the accompany¬
ing ])hotograph, the attendance was somewhat
larger. The officers of the club at this dinner
got away from the cramped arrangement of
serving ordinary banquets, namely, of sandwich¬
ing men side by side at a long table without el¬
bow room for anyone, when they arranged for
separate tables, each one accommodating four.
It made a very attractive arrangement and one
that was especially convenient because the
speaker’s table could be put at one side and the
platform for the professional entertainers at one
end. The professional entertainers included those
necessary on such occasions, namely, a couple of
women to sing and do a 'little impromptu dan¬
cing, a male quartet to add a little harmony
with a suggestion of barber shop chords here and
there, and an energetic young fellow to tell stories
who gave an idea of different nationalities by
raising or lowering his voice. E. R. Foley, the
president of the club, acted as toastmaster and
now that he has had a couple of experiences in
that job' he is proving himself quite proficient
and fills a very difficult position with ease and
grace. The principal speaker of the evening was
C. M. Moderwell, whose topic was “Friendliness
in Business.’’ He started out by making quite a
distinction, which is proper, between friendship
and friendliness. He said that to expect friendship
in business was asking quite a good deal, but to
provide for friendliness in business was nothing
more than part of the decency of trade and this
could best be promoted by such occasions as
that where competitors became acquainted with
each other and thus cleared up ignorance upon
which enmity principally is founded. Mr. Mod-
erwell’s remarks were well received, but the part
of his address that got him the biggest ovation
was when he invited the Kantishna Club on the
anniversary of its trip to West Virginia to accept
his invitation to go to the mines at Christopher
in Franklin county, Illinois. The invitation
was incidentally accepted and so the Kantishna
Club is scheduled for another outing in the near
future. The other speaker on the platform was
Mr. Davis of the Y. M. C. A. at Zion City. He
made a striking address which had a touch of
humor here, a dash of sentiment there, and quite
a good deal of common sense mixed in. The
subject was similar to that of Mr. Moderwell’s,
being another phase of the benefits to business
of constant association by competitors. These
dinners of the Kantishna Club are becoming in¬
teresting and distinct features of the Chicago
trade.
Inspection of Mines.
The members of the senior class of the de¬
partment of mining engineering. University of
Illinois, have returned from their annual inspec¬
tion tour of mines which was in charge of Pro¬
fessor E. A. Holbrook. This year, through the
courtesy of the various companies, studies were
made at the mines and plants of the Paradise
Coal Company, Duquoin ; Old Ben Mining Cor¬
poration, West Frankfort; Chicago and Cartef-
ville Mining Company, Herrin ; and Peabody Coal
Company, Mine No. 3, Marion. Afterwards the
party visited the offices of the Western Coal and
Alining Company, Railway Exchange building,
St. Louis, where the office end of coal mining
was explained to them.
Members of the Kantishna Club at the Second Informal Dinner at the Auditorium Hotel Tuesday, December 7th.
No. 24]
THE BLACK DIAMOND
477
Facts Which Determine Our Export Prospects.
The Export Situation.
Vessels are still very scarce, and exports are
showing a heavy decrease as compared with the
earlier months. Last week saw but few arrivals
at the coal loading ports, and thus coal is very
easy at Hampton Roads, though very scarce at
Baltimore and Philadelphia, where prices are
soaring, due to the fact that the coals that come
to these ports, have so many all-rail markets that
they can reach, that they can be diverted for
other purposes when export business slumps.
Also, there is a very good bunker demand at these
latter ports, due to the heavy shipments of war
munitions, and miscellaneous freight.
November figures of exports are not yet an¬
nounced officially, but best advices at the moment
show them to have been as follows :
Port — • Nov., 1915. Nov., 1914.
Hampton Roads . 334,830 163,650
Baltimore . 55,343 75,998
Philadelphia . 73,000 58,136
16s to 17s. Owing to reduced outputs, the small
coal market is rather firmer, but material con¬
cessions are obtainable in cases where collieries
are hard pressed for empty wagons. Best bunk¬
ers are 11s 6d to 12s, ordinary 10s to 11s, and
cargo qualities about 7s 6d, although 8s is beiag
asked for forward delivery.”
Baltimore November Exports.
Bituminous coal exports from Baltimore for
the month of November, were as follows:
Country — • Tonnage
Martinique . 1,551
Italy . . 37,724
Guadaloupe . 1,58P
San Domingo . 1,331
Sweden . 3,460
Cuba . 4,741
Argentine . 4,300
Honduras . 650
55,343
463,179 297,674
In October, 669,070 tons were exported. In
December, 1914, exports from the above ports
reached 234,695 tons.
The Welsh Coal Situation.
In its issue of November 26 The Colliery
Guardian of London says of the Cardiff coal situa¬
tion :
“Although tonnage has been arriving more free¬
ly, it cannot yet be said that prospects are any
more promising than they were a week or two
ago. The comparatively heavy chartering at the
openirug of the month is beginning to tell, but
many vessels are much overdue owing to stormy
weather. Against this, however, must be set
the fact that shippers are fighting shy of Greek
tonnage, and they are disinclined to enter into
arrangements until the political situation becomes
clearer and the position more defined. Outputs
are still very largely in excess of the demand,
and stocks continue to accumulate on all sides.
Some collieries have been only workin.g half time,
and in many other instances temporary stoppages
have taken place for a day and two days, with
the result that large numbers of men have been
idle. The crux of the present position is the
tonnage question, and until vessels arrive in the
channel in considerably larger numbers than they
are doing today, very little improvement can be
expected. As already stated, urgent representa¬
tions have been made to the .government, and the
recent Order in Council restricting British ships
to British trade is anticipated to be productive
of good results in the near future. It is pointed
out, with justification, that extravagance in trans¬
port organization is at the root of the difficulty
in the Cardiff coal market, although it is gen¬
erally admitted that there is a world-wide short-
a.ge of shipping tonnage, which at present cannot
be remedied. Freights continue to go up by leaps
and bounds, and in many cases the rates de¬
manded by shipowners are five and six times more
than they were before the commencement of
the war. Charterings last week amounted to
158,000 tons, compared with 145,850 tons in the
preceding six days, or an increase of 12,150 tons.
Such a total, however, is entirely inadequate to
the requirements of the port, and it is earnestly
hoped that some scheme will be devised which
will not only attract more vessels to the channel,
but also result in the freight market being put
on a more reasonable basis. Shipments last
week amounted to 397,163 tons, compared with
267,323 tons in the corresponding week of last
year, or an increase of 129,840 tons. These fig¬
ures are, of course, exclusive of shipments on
admiralty account, particulars of which are not
available. No information is yet to hand as to
the allocation of the business of the French
Alidi and the Paris, Lyons and Mediterranean
Railways, but it is expected that the contracts
will be settled in the course of a few days.
There is also an inquiry on the market for
the Paris and Orleans Railway, but the quantity
asked for is not stated. With regard to prices,
there is very little change. Best and superior sec¬
ond Admiralties continue to be monopolized for
the most part by the government, and what quan¬
tities can be released are being supplied to ex¬
porters under old contracts. Tliere is therefore
no quotation to indicate the market value. Ordi¬
nary qualities are still on the basis of 17s 6d to
19s, the latter figure bein.g firmly maintained in
the case of collieries which are favorably situ¬
ated so far as steams are concerned. Monmouth¬
shire coals are unaltered, best Black Veins being
18s to 19s. western valleys Is less, and easterns.
Hampton Roads November Exports.
Exports of coal from the three Hampton Roads
ports during November, together with a com¬
parison for November of last year, were as fol¬
lows :
Destination—
Lamberts
1914.
Point.
1915.
Briagetown, Barbados. . .
Barcelona, Spain . .
. 3,750
4,968
Buenos Aires, Arg .
12,690
BagnoH, Italy . .
4,900
Cristobal, C. Z .
42,547
Curacao, D. W. I .
5,400
Dakar, F. \V. A .
6,509
Fortune Bay, N. Fid...
60
Genoa, Italy .
. 34,566
17,029
Gibraltar . .
Havana, Cuba .
8,016
Hamilton, Bermuda .
.
. 788
Iquique, Chile .
. 4,523
2,016
Italy — any port .
5,275
Java .
8,147
Kingston, Jamaica .
981
Lisbon, Portugal .
3,898
Leghorn, Italy .
Messina, Sicily .
4,033
7,050
Manzanillo, Cuba .
. 1,374
La Plata, Arg .
. 5,150
.
Naples, Italy .
3,262
Para, Brazil .
. 6,500
2,371
Puerto Ferrajo, Italy. . .
Rio de Janeiro, Brazil...
9,990
. 6,500
11,085
Savona, Italy .
10,397
San Juan, P. K .
2,706
St. Lucia, B. W. I .
6,985
St. Thomas, D. W. I. . . .
1,547
Trapuii, Sicily .
. 1,600
Valparaiso, Chile .
. 7,000
Vera Cruz, Mexico .
. 4,402
4,363
Totals
Augusta, Italy .
Buenos Aires, Arg .
Genoa, Italy .
Havana, Cuba .
Italy — any port .
Maddalena, Italy .
Naples, Italy .
Para, Brazil .
Rio de Janeiro, Brazil
St. Lucia, B. W. I . . .
104,613
186,225
Sewalls Point.
1914.
1915.
5,036
3,802
6,313
2,440
7,750
4,980
5,529
11,054
■ 814
3,239
2,102
4,498
Bridgetown, Barbados .
Buenos Aires, Arg .
Cardenas, Cuba .
Cienfuegos, Cuba .
Cayo Francis, Cuba .
Georgetown, Detnerara .
Gothenburg, Sweden .
Havana, Cuba .
Mirseilies, France .
Montevideo, Uruguay .
Naples, Italy .
Port of Spain, Trinidad .
San Juan, P. R .
St. Lucia, B. W. I .
Santa Cruz, Teneriffe .
Santiago, Cuba .
Santo Domingo City, C. D. .
Stockholm, Sweden .
11,669 45,883
Newport News.
1914. 1915.
. 8,988
. 3,532
7,815 1,915
12,104 7,328
. 626
. 1,789
. 5,737
15,616 30,702
. 9,962
4,629 .
. 4,553
. 4,580
1,804 1,450
2,823 10,164
. 1,523
3,902 2,859
1,020 .
. 6,542
49,713 102,250
Foreign Freight Rates.
W. W. Battie & Co., Produce E.xchange, New
York, report as follows, under date of Decem¬
ber 6th :
'I'be tonnage scarcity is growing more acute,
wliich has a tendency to advance freight rates
to new liigh levels. Mediterranean rates are un¬
changed, although occasionally we have a steam¬
er, that is too old for grain, that is willing to
accept coal at less than the equivalent rate on
grain.. There is an urgent demand for steamers
for River Plate ports, and tonnage is difficult
to obtain even at advanced figures. Sugar rates
from Cuba have advanced to unprecedented fig¬
ures, and owners of the few boats available for
the West Indian trade prefer to send them in
ballast unless they can secure very high rates
on coal outward. None of our recent charters
for export coal have been reported.
We would quote freight rates on coal by steam¬
er as follows :
WeH coast of Italy, about 90s; Marseilles, 85s to 90s;
Barcelona, or other good Spanish port, 80s to 85s (Span¬
ish dues for account of cargo).
Note. — Charters for Italy, France and Spain read:
“Lay days to coniinence on steamer’s arrival at or off
port of discharge, Is per net register ton per day de¬
murrage.’’
Montevideo, 50s to 55s, 500 discharge; Buenos Aires
or La Plata, 50s to 55s, 500 discharge; Rosario, 55s to
57s 6d; Rio de Janeiro, about 50s, 500 discharge; Santos,
50s to 53s Od (consignees paying docas dues).
Valparaiso or Callao, $11 to $13; Havana, $2.75 to
$3.25; Cardenas or Sagua, $3.50 to $4; Cienfuegos,
$3.75 to $4; Port of Spain, Trinidad, $4.75 to $5; St.
Lucia, $4.75 to $5; St. Thomas, $4.25 to $4.75; Bar¬
bados, $4.75 to $5; Kingston, $4 to H.25; Curacao, about
$4.50 and p. c. ; Santiago, $4 to $4.25; Guantanamo, $4
to $4.25; Demerara, $6.50 to $'7; Bermuda, $3.50 to
$1; Vera Cruz, $5.50 to $6.50; Tampico, $5.50 to $6.50.
Recent Coal Freight Charters.
Str. Tor(3ensjoId (Nor.), Newport News to Bermuda,
coal, private terms.
Schr. Brina P. Pendleton, Philadelphia to Para, coal,
private terms.
Str. Mar Cor (Ital.), Baltimore to west coast Italy,
coal, private terms.
Schr. Mary W. Bowen, Norfolk to Buenos Aires, coal,
private terms.
Str. Californian, Virginia to River Plata, coal, $11.50.
Schr. E. IT. Blake, Philadelphia lo Bermuda, coal,
$3.25.
Schr. II. B. Cossens, Philadelphia to St. Johns, N. B.,
coal, private terms.
Str. Skogstad (Nor.), Philadelphia to ^lartinque, coal,
private terms.
Bark Appolo (Nor.), Norfolk to Perambuco or Rio
de Janeiro, coal, $8.50, “Jan.-Feb.”
Export Trade Briefs.
The Cardiff Chamber of Commerce at a recent
meeting had before it the question of loss of
coal trade and the development of American
competition. T. E. Watson, who presided, pointed
out that American exports of coal, which in
1913 were only two million tons had now in¬
creased to twelve million tons per annum ; and
he said that unless energetic steps were promptly
taken to increase the shipment of Welsh coal,
there was grave risk of many markets beiag lost.
American exporters had made contracts for three,
four, and five years ahead with British cus¬
tomers in France and Italy. Freights have risen
five and six-fold ; there seemed to be no limit.
Vessels built in 1913 could at present rates, earn
their cost in a twelve-month; and this meant a
dividend of 100 per cent. He blamed the govern¬
ment for commandeering at seven shillings to
fourteen shillings per ton ; and said that it was
on account of the inequality of treatment that
the difficulties had arisen. Mr. H. Radcliffe, a
member of one of the leadiag firms owning
“tramp” steamers, said that there was no owner
who desired rates to be at the point they had
reached. A resolution was passed to await the
result of the Order in Council restricting British
trade; and it was decided to urge upon the gov¬
ernment the desirability of appointing commercial
men to assist in obtaining greater efficiency in
working requisitioned vessels.
The scarcity of coal in the Netherlands since
the war bagan has led to search and inquiry in
all directions for relief by the use of substitutes
or otherwise. (The Netherlands uses vast quan¬
tities of foreign coal yearly. In 1913 the imports
totaled 22,429,730 tons; in 1914, 17,946,325 tons.)
.Along this line, an Amsterdam newspaper prints
an extract from a scientific journal stating that
"turfpoeder” (peat in a pow'dered form) has long
been used in Sweden as a fuel for stationary boil¬
ers, and that recent experiments in that country
with railroad locomotive boilers show that one
and one-third tons of peat powder equal one ton
of the best English coal for steaming purposes.
This leads the -Amsterdam newspaper to remark
that acordin.g to estimates the peat nioors of
the Netherlands contain at the present time fully
100,000 million kilos (about 100,000,000 long tons)
of ready-to-burn peat, which is equivalent to
about 75,000,000 tons of best English coal, ac¬
cording to the Swedish experiment, and that this
fuel is immediately available. The newspaper
adds that the price of "burgerturf” (a short, hard
peat burning a long time) is eleven to thii-teen
llorins ($4.4:1. to $5.2:!) per ton, while the best
En.glish coal costs sixteen florins ($6.43).
h'ire in a pile of .soft coal in .storage in the
yard.s of the L. K. Bnrket Company at Wayne,
a Philadelphia suburb, has been a source of local
interest for several weeks. Last Thursday it
hurst into flame and ignited a ])ile of cordwood
nearby. After this had been extinguished, it vyas
decided to tear the pile apart and do away with
any further danger.
478
THE BLACK DIAMOND
[December 11
General Review.
Eastern Prices Are Strong, Due to Car
Shortage, but Western Trade Is
Easy, Due to Weather.
A projection of the Ohio-Pennsylvania line di¬
vides the coal market into two zones where the
general trend is almost in diametrically opposite
directions. East of that line the market is quite
strong; west of it the market is easy. The lea-
son for the strength in the east is the shortage
of cars and labor. The weakness in the west
is due to the abundance of both. The car situa¬
tion, and not particularly the demand, is the domi¬
nant force in the coal market right now.
The eastern situation is not very hard to under¬
stand. The factories are busy and want coal ;
indeed, they must have it, because, as previously
related, they not only have a growing home
business, but they have a tremendous foreign
business. This requires a manufacturing pro¬
gram which entails the use of coal. However,
the door to their coal bin has been closed by the
transportation situation. This incidentally is due
to the rush of their manufactured products to
the east. All these manufacturers, to say noth¬
ing of the producers of foodstuffs in the west,
are shipping war materials to fidewater for
transfer to Europe. They can get the goods
to the coast, but the vessels for the movement
of the stuff beyond are not available. At least
the vessels cannot be provided to move the vol¬
ume that is seeking transportation. Therefore,
every terminal in the east is congested with cars.
As the terminals become congested and this works
back on the railroad, the situation instantly be¬
comes serious from a transportation point of
view. No commerce can pass a terminal block¬
ade of this kind, and this includes coal, as well
as any other commodity. So the coal that is
required to continue the active manufacturing
program cannot get through the blockade formed
by manufactured goods. The natural result, of
course, is that coal is scarce because cars are not
moving rapidly enough and the scarcity of coal
is booming the prices. Extravagant prices such
as $1.75 to $2.00 a ton are now being paid for
ordinary bituminous mine run coal in the east,
according to certain reports, and some sections of
New England are paying even higher.
Some of the coal operators have apparently
been misled by the prices quoted on coal. Rather
than attributing the rise in values to an interrup¬
tion in transportation, they ascribed it to the in¬
creased demand. Therefore, they are predicting
an increase of these prices far beyond the pe¬
riod when it is reasonable to suppose the trans¬
portation situation will be cleaned up.
Considered from the point of view of what is
the reasonable demand for coal, the eastern mar¬
ket is nevertheless in a good position. The fac¬
tories are running full time and this always
makes a good market. In addition, the export
situation, while not fully up to the hopes of the
operators, is nevertheless very good. That is, the
coal operators are not selling all of the cargo
coal that they can find a market for because trans¬
portation is not available. But they are selling
an unprecedented amount of bunker coal. So
soon as the rush of grain has let up a little, the
vessel situation will be relieved, and then we
can expect to do some of the cargo business that
is now in abeyance.
An annoying circumstance at this juncture is
the attitude of the miners. In the Pennsylvania
bituminous field they seem to be purposely heck¬
ling the operators by calling petty strikes for no
apparent reason. Very evidently they are seek¬
ing to curtail production so as to make storage
impossible, and thus increase the strength of their
strategic position a little later when they will
have some wage demands to make. These strikes,
added to the labor shortage, make the eastern
mining situation perplexing, as putting an em¬
bargo on output in addition to the embargo rising
from congested terminals.
In the west the situation is not difficult to un¬
derstand. The lake trade has been absorbing
a big volume of coal every month. However,
insurance rates expired on the first of December,
but were extended until the 12th. Even so, the
last cargoes are now on their way. Cars which
have been traveling the short route between the
mines and the south shore of Lake Erie are thus
released for a longer all-rail movement. By the
same token, the mine capacity which has been
devoted to the lake trade can now devote its
energies to meeting the demands of the interior
trade.
As a consequence, both coal and cars are easier
in the west. This comes at a time when warm
weather makes for a light consumption of coal.
The situation is not very easy to control. It was
made especially difficult by the fact that some
coal was reconsigned from lake ports after
failing of shipment by that route. Temporarily,
the western market is very crowded and was
only prevented from showing a bad break in
prices by the western operators curtailing ship¬
ments to actual orders.
The western situation also was complicated by
the sudden shutting off of buying for storage.
Some of the railroads and others had been doing
a little storage buying in anticipation of lal)or
trouble and a severe winter. The small call for
steam lump coal within the last week indicated
that their programs have been held in abeyance.
Chicago Market.
Soft Weather Lessens the Domestic
Demand, but Screenings
Are Stronger.
Office of The Bl.\ck Di.\mond,
Chicago, December 9.
The entire coal market for this week is influ¬
enced by the soft weather which has prevailed
for about the last ten days. That is, there is a
lessened demand for domestic coal, but a con¬
tinued strong demand for steam coal. Inasmuch
as the steam demand is mainly for screenings
with a lessening of the demand for steam lump,
a certain percentage of larger sizes had to be
made for which no ready market has been found.
As a consequence, the steam market has been
called upon to absorb some of the domestic coal,
and this has made the price situation rather easy.
The car supply, which has been depended upon
to give some strength to the coal market, has been
entirely too easy for comfort. Having plenty of
cars, some of the mines have been induced to run
to nearly full time, only to find that the coal
could not be sold. There has been, in some places,
quite an accumulation of unsold coal at the mines.
However, it is a very decided point in favor of
the market that the operators have kept this coal
at the mines, rather than consigning it unsold and
therefore breaking the market. Only in one in¬
stance in the state of Illinois has unsold coal
been consigned. The reward of this effort has
been a reduction in price of domestic egg and
lump coal to $1.10 a ton. That indicated the lack
of obsorptive capacity and quickly taught the
other operators that consigning free coal was a
dangerous practice.
The Franklin county situation has, from a
technical standpoint, been strengthened within
the last week. That is, the operators have recog¬
nized, after a careful study of the situation, that
this is no time to try to force coal on the market.
They have produced more than they have sold, as
is indicated by a very heavy accumulation of coal
on track at the mines. However, they are holding
the coal at the mines, rather than trying to force
it on the market, and consequently the circular
price has been more strongly maintained than at
any time for some weeks. While the prices are
firm, the mines have been losing business, owing
to warm weather. The operators have no con¬
trol over the buying tendency, but they can
control the prices and the factor that has been
under their direction has been handled extremely
well. Lump and egg coal, and especially egg,
have been moving rather slowly. Number one nut
has moved better than any other size. Screen¬
ings are quite strong at eighty cents for spot de¬
livery, with eighty-five cents asked and paid where
deliveries are to be made during December. The
prices up to Thursday were :
Franklin County —
Lump .
Egg .
No. 1 nut .
No. 2 nut .
Mine run .
2-inch screenings
F. O. B.
Chicago.
$2.80
2.36
2.80
2.15@2’.20
1.85@1.90
F. O. B.
Mines.
$1.76
1.75
1.75
1.50
1.10@1.16
.80® .85
In Williamson county, the lump and egg coals
have been moving slowly. This is due to the
fact that weather has been against the retail busi¬
ness. In one or two instances egg coal has
broken to $1.50 in order to move it. No consid¬
erable portion of the tonnage, however, has moved
at that figure. About half of the operators are
short of orders for number one nut, the other
half have sold more of that size than they can
deliver conveniently. By sales between the opera¬
tors the supply is made about equal to the de¬
mand. Fine coal has been strong at eighty to
eighty-five cents:
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65@2.80 $1.60@1.75
Egg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county coal is still handicapped by the
fact that the producers undertook an increase in
production at an unfortunate time. They en¬
larged the tonnage just as fhe market slowed
down because of warm weather. This has made
domestic lump, egg and number one nut some¬
what easy, with prices breaking to $1.50. Screen¬
ings, on the other hand, have been quite strong,
with prices ranging close to eighty cents at the
mines. Prices up to Thursday were :
F. p. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.55@2.80 $1.50@1.75
Mine run . 2.20 1.15
Screenings . 1.85@1.90 .80@ .85
1^-inch lump . 2.35 1.80
Sangamon county domestic lump has been
moving slowly, but prices are firm at $1.65 to
$1.75. Some of the other counties have shipped
unsold coal to market, and the lump and egg, and
especially the egg, has broken below $1.25, some
big sales being made at $1.10. Mine run is quot¬
ed at about $1.05 throughout the entire central
district, and screenings at seventy cents : .
F. O. B. F. O. B.
Central Illinois — Chicago. Mines.
Lump . $2.32@2.57 $1.25@1.75
Egg . 2.32@2.47 1.50@1.65
Nut . 2.47 1.65
Mine run . 1.87 1.05
Screenings . 1.52 .70
Clinton number four lump is firm at $1.65 to
$1.75, but the egg is easier, going at $1.50. Screen¬
ings are strong at about eighty-five cents :
F. O. B. F. p. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.27 1.50
Nut . ;■ . 2.12 1.85
No. 5 and 6 mine run . , . 1.87 1.10
No. 5 and 6 screenings....’. . 1.62 .85
Knox county domestic lump has been moving
slowly at $1.50. There has been a little letup in
orders for steam lump and this has shortened
the supply of screenings, which are quoted at
eighty-five to ninety cents and strong at that
figure :
F. p. B. F. p. B.
Knox County — Chicago. Mines.
Lump . $2.37 $1.50
Egg . 2.37 1.60
Mine run . 1.87 1.05
Screenings . 1.72 .85
The accumulation of unsold anthracite noted a
week ago has been about cleaned up and the mar¬
ket is firm as to prices, but decidedly quiet. The
tonnage, in fact, is disappointing to most of the
producers, although some statements are made
that business is good.
The smokeless coal market has continued easy
as to mine run, the major operators holding for
$1.40, with some of the coal being sold at $1.25.
A few reports have indicated sales at less than
that price, but these are not easily confirmed, and
even if they were confirmed, the tonnage would
be found to be small. The establishment of a
new circular price on lump and egg, effective the
latter part of last week, strengthened that situa¬
tion considerably :
F. p. B. F. p. B.
Smokeless — Chicago. Mines.
Mine rur. . $3.30@3.45 $1.25@1.40
Lump and egg . 3.90@4.05 1.85@2.00
Practically no Somerset county coal is coming
west, because the operators are now getting, ac¬
cording to reports, from $1.75 to $2.00 for mine
run coal. That size has practically been with¬
drawn from this market, except a few shipments
made to satisfy contracts :
F. O. B. F. p. B.
Somerset County — Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 3.80 1.75
Hocking coal has been practically unchanged
both as to price and market for the last week.
The market is quiet :
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.25@3.40 $1.60@1.76
The splint situation continues steady as to price,
l)Ut a little more quiet as to volume of business :
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
It4'inch lump . $3.40@3.50 $1.50@1.60
Softening of the weather hit eastern Kentucky,
continuing the wide spread of prices quoted last
week : „ „ „
F. p. B. F. p. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.55@4.30 $1.65@2.40
Egg . 3.40@3.90 1.50@2.00
The coke market is active, with a good demand
'for furnace and foundry and a moderate de¬
mand for the domestic sizes of by-product coke:
F. O. B.
Coke _ Chicago.
Connellsville .
By-product, foundry . 3-35@6.60
By-product, egg and stove . 4.76@4.96
By-product, nut .
Gas house .
No. 24]
479
THE BLACK DIAMOND.
Pittsburgh Trade.
Slack Prices Are Rising and There Is
Talk of Crushing the Mine Run —
Other Sizes Are Strong.
Office of The Black Diamond,
1502 Oliver Building,
Pittsburgh, Pa., December 9.
The coal market in this district is strong and
steady, demand keeping ahead of production, and
prices hardening all along the line. No coal has
sold at $2.00 in this district, as quoted from the
east the past week for Pennsylvania coal at mines.
Possibly the eastern part of the state may be
getting those figures, but those who have coal
to sell here are quoting mine run f. o. b. mines
at $1.25 to $1.30, with three-quarter screened
coal $1.40 to $1..50, and five-quarter at $1.50 to
$1.60, and small-lot producers are selling their
output at five to ten cents less than this.
Slack is very strong, with reported sales at
$1.00 to $1.10, though quotations today are made
at ninety-five cents to $1.00 for best gas slack,
with steam anywhere from eighty-five cents to
ninety cents, and hard to find. Talk of crushing
at the mines is heard from some, but owing to
the scarcity of cars and labor, it is hard to get
deliveries made on what is now produced.
The seriousness of the transportation situa¬
tion cannot be overestimated, in so far as the
Pittsburgh district is concerned particularly.
While every plant in the district is being operat¬
ed full time with feverish determination upon
the part of its owners to derive all the benefit
possible from the present unprecedented demand
for manufactured products of every description
and particularly iron and steel, freight cars where¬
in to transport them to the markets are lacking
to a disheartening extent as regards numbers, de¬
spite the efforts of the railroads to supply them.
The situation east is much worse than west, the
great majority of the cars now arriving thereat
are being utilized for storage purposes, with the
result that literally thousands of them are now
standing on yard tracks, at least this is the re¬
port here. Last Thursday and Friday, in the
Latrohe-Connellsville district, mines could only
get thirty to forty per cent of their requirements;
Saturday and Monday the average was about
fifty per cent, and that situation maintains today.
At the coal and coke shipping office of the Balti¬
more & Ohio, the writer was informed that not in
twenty years had conditions like the present ex¬
isted. Pennsylvania lines east are just as bad. In
some sections — locally — short line service is better,
and supplies moving fairly well. Mine activity has
not lessened since lake shipping ceased. The in¬
creased consumption for domestic purposes that
colder weather has brought, to.gether with the in¬
creasing call on mill contracts, practically counter¬
balancing the falling off in the northwest trade.
Retail trade has been fairly active the past
week, but dealers are slow to buy any distance
ahead, taking chances on getting a supply as
they need it.
The Pittsburgh Press has this to say regarding
Pittsburgh : “The extent of the recovery in this
district may be gauged by a study of the follow¬
ing table, which shows the percentage of oper¬
ations at present, three months ago and six
months ago. The table was prepared by leading
local authorities for conditions in March, Septem¬
ber and November, and is as follows:
I - Per Cent - ,
Present.
September.
March.
Steel plants .
. 102
90
40
Minor manufacturers. .
. 80
70
45
fila?s i)atents .
. !)5
90
75
Industrial payroll .
. 110
7.5
50
Coal operations .
. 90
65
40
(‘okc operations .
. 90
72
45
Railroad equipment....
. 90
75
25
Electrical equipment...
. 90
65
30
M. M. Cochran, a
prominent member of the Fa-
yette county bar and one of the leading bank¬
ers, coal operators and coke manufacturers in
the Conuellsville region, was elected president of
the J. V. Thompson Creditors’ Association. It
was largely through the efforts of Mr. Cochran
that the association was formed, and he made a
stirring address in which he urged that such an
action be taken. The formation of such an or¬
ganization is declared hy creditors of Mr. Thomp¬
son and his associates to be the means of saving
his assets and at the same time indicating the
])ayment of all of the debts, both secured and un¬
secured. It is said that the organization of the
creditors’ association will mean the refinancing
of the banker’s affairs within a reasonably short
time, and the payment of all claims at their
face. Bankruptcy, which was strongly hintad at
a meeting of the lawyers last Monday, has been
averted.
Furnace coke has been a little weak the past
week, so far as price is concerned, though no
large accumulation of free coke can be found.
Off grades have been bought at $2.00, and some
of the better grades has been sold at $2.15. No
large inquiry has been out, however, the fur¬
nace interests being well covered for December,
and well into the first half. The coke interests
are somewhat excited over the labor question,
and a general scarcity is reported, and the near
approach of the Christmas holidays will have
a tendency to further handicap the producer.
There will be plenty of help the week before,
but Christmas coming on Saturday, there will be
little done the week following.
To take place of men whom they cannot se¬
cure, the Oliver & Snyder Steel Company are
installing two Covington coke drawing machines
at their No. 2 plant, in the Conuellsville district.
The company has been unable to secure enough
men to operate 275 of the ovens. Efforts have
lieen made at various places to obtain sufficient
men, but of no avail. To remedy this condition,
the company has decided to install machinery
which will displace a number of workmen. Each
machine will displace fifteen men. Each machine
can pull forty ovens per day, but on account of
the construction of the equipment of the plant
this number of ovens will be reduced to about
thirty-two. Machines are used at each of the
other two plants. The machines were ordered
from the Covington Machine Company, at Cov¬
ington, Va., and cost $6,000 each.
The quotable market on standard furnace coke
for spot or contract would be $2.25 to $2.35, but,
as stated, off grades are selling for less and being
taken by consumers. The same handicap is felt
here in the car shortage that is being experienced
in coal, iron and steel.
Best foundry grades of old basin Connells-
ville coke hold firm at $3.25 to $3.50, with $3.00 for
less desirable product.
The operator who made his contracts with the
furnace trade on the sliding scale basis is the
“man who laughs’’ just now, and pats himself
on the right side, though as a general thing the
sliding scale is frowned upon by the producer.
Duluth Trade.
Duluth, Minn., December 9. — {Special Cor¬
respondence.) — By the time this is printed the
last coal barge of the season will have been un¬
loaded here. One more boat is to arrive, at this
writing, and may be in at any time, and with
her burden transferred to the docks, the lake
coal season will have ended.
Since the first of the month thirty-five boats
have arrived, carrying 250,000 to 300,000 tons,
mostly of hard coal. The heavier part of the
movement of the last few weeks has been in hard
coal, although soft coal will be pretty scarce
when the winter’s supply will have been furnished.
A story issued this week to the effect that
there is likely to be a coal shortage owing to the
comparative scarcity on the docks here, brought
forth from coal officials in the Twin Cities a
denial. However there is no disputing the fact
that not nearly so much coal as usual is stored
here, and if the demand is anything like that
of a normal year, there is bound to be less of a
percentage on hand — to say the least — when the
lake season opens next spring.
The storage capacity of the docks here amounts
to 8,000,000 to 8,500,000 tons. At the present time,
according to estimates of coal men here who
are in a position to know, there is on hand about
5,500,000 tons of soft coal and about 1,100,000
tons of hard coal. This is about 70 per cent ol
capacity and about 15 per cent less than the
owners of docks usually aim to have on hand to
face the winter months.
The usual amount left over in the spring is
twenty-five per cent or less, but twenty-five per
cent is a good average. Should there be any¬
thing like a normal demand through the north¬
west this winter, it is therefore patent that the
docks, facing this winter with a curtailed supply,
are going to be pretty well cleaned out next spring.
Last spring the left-over stock amounted to about
thirty per cent, which was most unusual, and was
due to the fact that less coal than in many years
was demanded in this part of the country. Up to
*liis time the dpmand through the northwest has
l)een much heavier than in any previous year,
and should this keep up, the chances of a shortage
are .great. However, some dealers claim to be¬
lieve that the unusually heavy demand that has
l)eeu experienced all fall merely means that the
coal dealers of the northwest have been ordering
their supplies early, and that it is not wholly due
to the extraordinary demands of railroads and
threshers as some believe.
The heavy demand keeps up well, so far as
commercial trade is concerned, despite the fact
that the weather has been very much against it.
Weather throughout the northwest has been un¬
usually mild so far, and coal consumption must
have been lighter than in the general run of early
winters. The railroad demand has dropped off
during the past week also.
It was expected that a number of Pittsburgh
boats would lay up here with storage coal, but
only one has done so. The steel corporation
has enjoyed a liberal movement during the past
few months and is pretty well stocked up in its
storage yards and on the docks, which is the
probable reason that no more boats have been
used for storage.
Twin Cities Trade.
Minneapolis-St. Paul, Minn., December 9. —
(Special Correspondence.) — The weather con¬
tinues extremely mild for this season of the year,
and the trade is beginning to feel its effect. Coun¬
try dealers especially complain of full bins and
no buyers, consequently they will not reorder un¬
til buying takes a brace, and that will be just as
soon as the cold and snow makes it impossible for
the consumers longer to defer going to town after
coal.
The dock companies report a falling off in
business, but are moving a fair tonnage, espe¬
cially anthracite. The activity on the part of
manufacturers in the Twin Cities is affordnig
them an outlet for an increased tonnage of steam
coals, but prices are still weak, and are not main¬
tained as they should be. The advance of ten
cents per ton on all coals from Illinois and Indi¬
ana has put a crimp in these coals for steam pur¬
poses, and the docks are reaping the benefit, and
will continue to enjoy a large tonnage even after
the 15th, when lower rates on coals under two
inches in size go into effect, for the reason that
Illinois screenings seem to be getting higher than
ever before at this time of year, and buyers will
pass them up in favor of the dock coals, unless
the dock interests can get together on something
like a decent price and conclude that it is better
to make a little money out of their product instead
of selling at a loss.
A fairly large tonnage of smokeless coals in¬
tended for shipment to upper lake ports is find¬
ing its way into this market for the reason tliat
when it reached loading ports no boats were avail¬
able and it had to be diverted to the all-rail mar¬
ket. Some of the cars are of such enormous pro¬
portions as to suggest an ocean liner and the
dealer who gets one of them lets loose some
loud wails when he goes to unload the coal.
Some of this coal is being offered at very low
prices, and some demurrage is bound to accrue.
On Franklin county coals the smaller sizes
seem to be more popular than ever, and it is a
hard matter to get orders for lump and egg.
Current market prices at wholesale on leading
grades of coal sold in the Twin Cities are as fol¬
lows :
ANTHRACITE.
Grate .
F. 0. B.
Duluth
and
Superior
6 85
F. 0. B.
Minneapolis
and
St. Paul
$7.80
8 05
6 85
8.05
Nut .
7 10
. 8.30
6.70
Pea .
5.50
Buckwheat .
5.20
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.40
$4.26@4.36
Splint, dock run .
3.10
4.06
Hocking, .screened lump and .stove
3.30@3.40
4.26@4.36
Hocking, dock run .
3.00
3.9C
VoughioRheny, gas, lump and stove
3.30@3.40
4.26@4.36
VoughioghenV; gas, dock run .
3.10
4.06
Pittsburgh vein, lump .
3.30@3.40
4.20@4.36
Pittsburgh vein, dock run .
3.00
3.96
Pocahontas, screened lump or egg
4.75
5.71
Pocahontas, screened lump and
egg mixed .
4.50
5.46
Pocahontas, mine run .
3.25
4.21
Cannel, lump .
5.25
6.21
.Smithing, bulk .
4.25
5.21
Smithing, in 100 lb. sacks .
6.00
6.96
Briquets, anthracite .
5.00
5.96
Briquets, smokeless .
5.00
5.96
In the Illinois trade tlie
range of
prices on
southern Illinois product on the various sizes is as
follows :
Franklin County —
1 ump, egg and No. 1 nut . 5i
> I 1.75
$:P05(aT4.05
No. 2 nut .
1.40@1.50
3.70@3.KI
2-inch screenings .
.75
4.05
Run of mine .
1.15@1.25
3.45@3.55
Williamson and Saline C'ounties —
1 ump, egg and No. 1 nut .
1.65@1.75
3.95 @4.05
No. 2 nut .
1.40@1.50
3.70@3.SO
2-inch screenings .
.75
4.05
Run of mine .
1.15(»1.25
3.45@3.55
480
THE BLACK DIAMOND
[December 11
Cincinnati Trade.
Smokeless Lump and Egg Circular Is
Reduced, Due to Mild Weather and
Growth of Slack Demand.
Cincinnati, Ohio, December 9. — (Special Cor¬
respondence.) — The sale of several hundred cars
of smokeless lump and egg in the Chicago and
Detroit markets at mine run prices, the past
week, caused quite a flurry among smokeless
operators and resulted in a new circular from
some of the largest operations, reducing the price
of lump and egg from the original schedule of
per ton to $2 in flats and $1.85 in hoppers.
Nut coal also sustained a reduction of price from
$2 to $1.75 for flats and $1.65 for hoppers. This,
together with the prevailing mild weather the past
week or ten days operated to make the market
generally dull, although there were exceptions.
The buyers of splint block and egg hesitated
and suspended or cancelled orders, declining to
pay $1.85 to $2 for domestic splint when Poca¬
hontas lump and egg could be had at $1.40 per
ton. Some of the smokeless people in Cincin¬
nati were indignant at the action of those who
threw this large tonnage, estimated at 25,000
tons, into the market without warning.
The condition in Kentucky as to splint is still
.good. Borderland prices have advanced this week
to the followng schedule: Four-inch block, $2;
21/2-inch block, $1.85 ; 4x2;4-inch egg, $1.50 ; nut,
.$1.35; and no nut and slack to offer being out
of the open market. In this field the car supply
is estimated by a prominent operator to be
eighty-five per cent, labor eighty-five per cent,
delivery not satisfactory and collections excellent.
In fact collections generally have been more satis¬
factory in the past thirty days than for many
months. In West Virginia, Cinderella coal is in
the market at the following prices : Three and
a half-inch block, $2; egg, $1.50 to $1.60; nut,
$1.40 to $1.50; mine run, no attention paid to this
product in the present state of the market; nut
and slack, eighty-five and ninety cents. This coal
loaded a fine cargo at tidewater the past week.
The Majestic mines of Kentucky quoted $1 to
$1.10 for mine run; three-inch lump, $1.60 to
$1.75 ; egg, $1.25 to $1.35 ; nut and slack, eighty
to eighty-five cents.
In the territory in the districts of which these
mines are the center the car supply is low, gon¬
dolas about forty per cent to fifty per cent of
normal and hoppers too plentiful, according to
the operators of that region. Many of the patrons
of these operations complain that they have no
adequate arrangements to take care of these huge
cars. Formerly they could dump the contents
of the car on the side track, but most of the
railroads have adopted rules against this practice
and labor will not shovel out of cars with sixteen-
foot sides at any price. These districts also re¬
port labor short about twenty per cent, collec¬
tions good and very little transfer trouble, one
big company reporting but one case of transfer
in forty days.
Cincinnati Trade News.
R. D. Jeffers, representative of the Litz-Smith
Company of Huntington, W. Va., was a visitor
in the city the past week. Fie was formerly in
offices in Cincinnati and is well known here.
Jules Hoffman, a well known coal operator of
Detroit, dropped off in Cincinnati Tuesday and
visited Cincinnati friends a few hours. He was
on his way to inspect some coal properties in
Kentucky.
James A. Reilly, Cincinnati manager of the
Queen City Coal Company, started Wednesday
for a tour among the offices of the company in
the south, including Baton Rouge, New Orleans,
Memphis, Cairo, St. Louis and other points. He
will return home in time for his Christmas
dinner.
L. E. Armentrout, president of the Borderland
Coal Company of Borderland, Ky., and of the
Borderland Coal Sales Company of this city, was
a visitor at the offices of the company here this
week. Mr. Armentrout reports the situation fair
to good in his section of Kentucky and believes
that the market will be a very strong one before
the winter is over.
Letters from W. C. Rogers, formerly a well
known coal manager of this city, show that he
is safely enscounced in his new home on the
Isle of Pines, where his son is the general mana¬
ger of several large fruit ranches. Mr. Rogers
reports that he is well contented and that he will
have watermelon for his Christmas dinner, that
fruits are abundant, flowers blooming and birds
singing and that he was in a bathing party on
a day when in Ohio the thermometer was down
to 26.
H. 11. Morris, formerly superintendent of the
Chesapeake & Ohio Railway company, resident
at Huntington, W. Va., resigned from the rail¬
road company’s employ, effective December 1st,
and has organized a new selling company to be
known as the West Virginia Standard Coal Com¬
pany, with headquarters in Huntington and later
with branch offices in Cincinnati, Toledo, Cleve¬
land, Detroit, Richmond, Va., and Chicago. The
company has been incorporated and has ample
capital behind it.
Mr. Frank Ellison of the C. G. Blake Company,
of this city, is at home after a trip to Europe
connected with the export business of the com¬
pany and a stay of several weeks in New York
keeping an eye on the situation there. There
has been considerable commotion in connection
with the capture of the Genessee, one of the
Blake company’s export steamships, taken by
British cruisers and held on the ground that it is
a German built ship and that Germans are inter¬
ested in its business.
C. E. Flutchinson, vice-president of the Hutch¬
inson Coal Company of Fairmont, W. Va., C. H.
Jenkins, secretary-treasurer of the company, and
Frank E. Hutchinson, of Logan, W. Va., general
manager of the Rich Creek Coal Company, were
all recent visitors at the Cincinnati offices of the
Hutchinson Coal Company. Mr. Jenkins is a
member of the executive board of the West Vir¬
ginia Coal Association and is deeply interested
in the fight against the proposed raise in the
freight rate in West Virginia.
Quite a number of Cincinnati coal and river
men are in Washington this week in attendance
on the National Rivers and Harbors Cpngress,
which held its annual convention in that city.
Among them were the following well-known
.men : Colonel Oscar Barrett, Captain Slack Bar¬
rett, Captain Henry Vorbroker, Captain Walter
Ware, Captain Fred Hall, Captain Fred Hart-
weg. Captain J. T. Ellison, Captain James T.
Hatfield, and Dr. Felix Cross. Captain E. A.
Burnsides of Point Pleasant, W. Va., was also
of the party.
Forgery and tampering with a coal and mineral
clause in a will are involved in a case which
came up from Kentucky to the United States
Circuit Court of Appeals in this city this week.
The transcript is that of the case of Joseph
H. Estep and John B. Estep vs. The Kent-
land Coal & Coke Company, The Alma
Coal Company, and James E. Hellier and
Charles E. Hellier, and it came up from the
United States District Court at Catlettsburg, Ky.,
and appeals from the decision of that court which
refused to decree that Joseph H. Estep and John
B. Estep are the owners of the coal and mineral
rights in certain lands in Pike county, Kentucky,
held at present by the Kentland Coal & Coke
Company. The Estep brothers allege that they
had received the deed to the land from their
father and that after the deed was made it was
tampered with, altered and amended by the forg¬
ing of a clause into the instrument excepting the
coal and mineral rights underlying the land.
Birmingham Trade.
Birmingham, Ala., December 9. — (Special Cor¬
respondence.) — Cool weather has caused increased
business in domestic coal. The consumer is
buying and some retailers report they have all
the business they can handle. Most of the yard¬
men have stored sufficient tonnage to meet de¬
mands temporarily. Other yards, which had only
moderate storage, have about used up this stock
and these dealers are orderin.g from operators.
Steam coal is being used in quantity. The
railroads are using larger quota than formerly
and are storing some coal for winter use. This
extra demand has caused some difficulty in get¬
ting the cars needed.
The river trade is holdiag up well. Walter
Allen, formerly at Birmingham, but at present
located in New Orleans, says the coal business
is picking up and if demand continues to increase,
it will be greater than supply. The bunker trade
at both of these cities is good. Trade at Pensa¬
cola is fairly good.
Coke is very strong. There is practically no
by-product for the .general market and the addi¬
tional bee-hive ovens find the call equal to sup¬
ply. Prices are strong, being quoted from $3.25
iiy some operators, to $3.75 asked for Number 2
foundry coke. Some coke is still being shipped
from the district to western points.
Articles of incorporation were filed Thursday
by the Cane Creek Tipple Company in the pro¬
bate court, capital stock $25,000. The new cor¬
poration is. headed by Henry T. DeBardeleben,
president, and G. M. Bowees and the DeBarde¬
leben Coal Company, incorporated, takes $24,600
of the stock. The company will operate a large
line on the Warrior river.
The DeBardeleben Company, incorporated,
caused the construction of a spur track by the
Frisco railroad from the water tank, a short
distance east of Cordova, in Walker county, to
vvhat is known as Cane Creek. A wharf and
tipple was put on Cane creek, and several barges
have already been provided. Coal is brought from
Sipsey to Cane creek by the Frisco, loaded on to
bar.ges, and taken to Mobile and New Orleans.
Barge lines on the Warrior river are now being
operated by the Pratt Consolidated Coal Com¬
pany, the Tennessee Coal, Iron and Railroad Com¬
pany and the DeBardeleben people. It is under¬
stood that preparations are under way to increase
the carrying capacity through the various locks
on the river, and by early spring it is estimated
that at least twenty more barges will be in readi¬
ness for Warrior river operation.
The Empire Coal Company, of which company
Walter Moore is the head, will use the bar.ge
line also. This will be four large companies who
will use the river for coal transportation.
The Pratt Consolidated Coal Company, a few
weeks ago, announced bids would be received
from a Mobile concern for additional barges de¬
signed along new lines.' It was also reported
some time ago that the American Bridge Com¬
pany, a subsidiary organization of the United
States Steel Corporation, was figuring on the
construction of additional barges for the Ten¬
nessee Coal, Iron and Railroad Company, which
concern is now using bar.ges of the Alabama and
New Orleans Transportation Company.
Prices are as follows;
Bibb County Domestic —
Red ash Cababa iump .
Red ash Cababa lump . . .
Red ash steam size .
Jefferson County —
Fancy steam Pratt .
Run of mine Pratt .
Mary Lee lump .
Black Creek —
Fancy steam lump .
Washed nut .
Washed steam .
Mine run .
Jefferson Steam Coal —
Mine run .
Walker County Domestic Coal-
Carbon Hill lump .
Carbon Hill egg .
Horse Creek mine run .
Genuine Corona —
Lump .
Egg .
F. O. B.
Mines.
$3.00
2.75
F. p. B.
Birmingham.
$3.30
$.10
1.20@1.35 Frt. rate 30c
1.75
1.20@1.25
1.40@1.60
1.75
1.75
2.00
1.45?»1.50
1.80@1.90
2.05
2.05
1.36@1.0O Frt. rate 30c
1.35@1.40 Frt. rate 30c
1.15@1.25 Frt. rate 30c
1.75
1.65
2.15
2.05
1.00@1.20 Frt. rate 40c
2.00
1.99
2.40
2.35
Steam sizes . 1.25@1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . . . 3.00 3.30
Cahaba No. 2 lump . 2.75 3.06
Montevallo domestic prices range from $3.00 to $3.25.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
Denver Trade.
Denver, Colo., December 9. — (Special Corre¬
spondence.) — A break in the recent cold spell has
resulted in a falling off in the activity of the
market here a week ago. But while the retail
business has been slow, production does not seem
to have suffered any material decrease. Antici¬
pation of the future requirements of distributors
and a good many unfilled orders have brought the
output for the week almost up to that of the
preceding period.
The lignite output shows the greatest loss for
the week, but will not run below ten per cent of
that of the previous week. The nights now are
invariably chilly and often cold and consumers
are taking no chances on what is liable to happen
at this time of the year. The su.gar factories are
still running and may continue for two weeks
more, and this demand takes care of considerable
lignite.
There continues a fair demand for all grades
of bituminous coal, and Trinidad, Walsenburg,
Canon City and Routt county report a fair
volume of business, with orders arriving from
country dealers in excess of what might be ex¬
pected, considering weather conditions.
At the close of last week there was a surplus
of lignite and bituminous slack, but prices this
week have been well held. There is not a
sufficient order supply to cause embarrassment
unless unseasonable days are too prolonged.
The following prices on lignite are ruling;
f. o. b. mines: For Denver delivery, lump, $2.35
to $2.65 ; mine run, $1.50 to $1.65 ; slack, $1.05
to $1.25. For points outside of Denver, lump,
$2.50; mine run, $1.55 to $1.65; slack, $1.05.
No. 24]
THE BLACK DIAMOND
481
Cleveland Market.
Cleveland, Ohio, December 9. — (Special Cor¬
respondence.) — The reduction in the amount of
larger sizes of coal needed, due to the close of
the lake season, has tightened up the slack market
here and resulted in an increase in the price,
of almost every grade. For the same reason the
three-quarter size of No. 8 and similar sizes of
a number of other coals have gone down the
scale. In many instances the larger sizes have
been offered at the same price as slack and it is
said that some grades may be secured at even
lower prices than are asked for slack of the
same kind.
When the lake season closed there was little
slack on track at this port and the usual market
depression was averted for this reason. In the
past much trouble often followed the close of
navigation, because of the large accumulation of
coal, due to efforts to have as much as possible
loaded during the last few days. Much of this
coal would fail to reach the docks until too late
and frequently many hundred cars would have
to be dumped on the market to bring what they
would. In a season of close trading, as the pres¬
ent one has been, coal is not rushed forward to
the same extent and little trouble is encountered
in having it all loaded.
Some producers have been seeking boats for
stora.ge at this end of the line, but they are still
difficult to secure. The partial embargo placed
on Canadian grain seemingly had little effect
on the tonnage and there is not much to be had
for any purpose. Unless the weather grows too
cold to move boats about some of them may
be loaded later on with storage coal. Pro¬
ducers, by loading boats, in this way, would be
able to make a lot of slack which is in demand at
a good price now.
Domestic coals have been weak through the
past several days. Although the weather has been
somewhat cooler than usual, the demand has
shown little response. To some extent, it is be¬
lieved that the number of different coals used
in the domestic market has increased and that,
for this reason, those grades which are usually
very strong at this time of the year are feeling
the effect.
No 8 slack has advanced at least five cents a
ton within the past week, while the quotation for
run of mine has remained stationary five cents
lower. It appears now that slack will show a
corresponding increase during the coming week,
unless something occurs to develop a demand
for the larger sizes. The figures are :
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-qu..rters . $1.05@1.10 $1.95@2.00
Run of mine . .90 1.80
Slack . .95 1.85
Coshocton coal has been in fair demand through
the week, especially in the smaller .sizes, but this
has not been sufficient to cause any material
change in the quotations :
F. O. B. F. O. B.
Coshocton — Mines. Cleveland.
Lump, 4-inch screened . $1.70@1.75 $2.40@2.45
lJ4-inch . 1.60@1.65 2.30@2.35
Egg and nut . 1.05@1.10 1.75@1.80
Pittsburgh slack has been offered in this market
in somewhat larger quantities than for some
time, but the demand was such that it commanded
an increased price over last week:
F. O. B. F. O. B.
Pittsburgh— Mines. Cleveland.
Slack . . $0.85@ .90 $1.85@1.90
The mild weather prevailing for some little
time has enabled the Massillon operators to catch
up somewhat with their orders, but there has been
no change in prices :
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 2.50 3.20
Slack . 1.05@1.10 1.75@1.80
Smokeless coals have not recovered from their
recent depression. The offerings seem to be
heavier than usual without the demand naturally
expected at this season of the year. The quota¬
tions have changed little during the past week :
F. O. B. F. O. B.
Smokeless — Mines. Cleveland.
Lump . $1.90 $3.25
Egg . l.Tt) 3.20
Run of mine . 1.25 2.70 ,
Cambridge slack has recovered its strength, but
there has been little business in the other sizes
the past week. Prices quoted are as follows:
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Three-quarters . $1.10 $2.00
Run of mine . 1.00 1.90
Slack . .96 1.85
Kentucky block remains stationary in price, with
quite a little handled in
past week:
Kentucky —
4-inch block .
the market during the
F. O. B. F. O. B.
Mines. Cleveland.
. . .$1.90@2.00 $3.15@3.25
The small amount of Youghiogheny coal in the
market resulted in light trading. Quotations un¬
changed :
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
lJ4-inch . $1.40@1.60 $2.40@2.5O
Three-quarters . 1.30 2.30
Run of mine . 1.20 2.20
Slack . 95@1.00 1.95@2.00
Bergholtz coal showed the same strength in
slack as the other coals, but there has been no
change in the quotations on other sizes :
F. O. B. F. O. B.
Bergholtz — Mines. Cleveland.
6-inch lump . $1.70 $2.40
lt4-inch . 1.45 2.15
Three-quarters . 1.85 2.06
Egg . 1.25 1.95
Run of mine . 1.20 1.90
Slack . 1.10@1.15 1.80@1.85
The larger sizes of Wainwright coal did not
move as freely as might be, because of the dull¬
ness of the retail trade, but slack is on the up¬
ward trend :
F. O. B. F. O. B.
Goshen-Wainwright Mines — Mines. Cleveland.
Three-quarter domestic . $1.40 $2.10
3-inch lump . 1.80 2.50
Lump . 1.65 2.35
Slack . 1.10 1.80
Quotations on Goshen coal are as follows:
F. O. B. F. O. B.
Goshen — ■ Mines. Cleveland.
Three-quarters
l}4-inch .
Run of mine.
Slack .
$1.30 $2.00
1.40 2.10
1.15 1.85
1.10 1.80
Cleveland News Notes.
Henry Barkhausen of the Barkhausen Coal &
Dock Company, Green Bay, was in the city on
business Monday.
The coal shipments from the Ashtabula docks
for November were 433,898 net tons. From the
Conneaut docks 291,756 tons of coal were shipped.
The ore receipts at these two docks were well
up to the records of other heavy seasons.
St. Louis Trade.
St. Louis, Mo., December 9. — (Special Cor¬
respondence.) — The weather has been dragging
in a very mild state, and the temperature has
been as unsatisfactory as it can possibly be to
the coal trade at large, especially the retail trade,
as it is just cold enough not to move much ice,
to those dealers who are in both the coal and
ice business, and not cold enough to do the coal
business much good. In fact the consumption of
coal has been so light as to be just a teaser to
the coal men. As a consequence the domestic
business has not been very brisk, and all grades
of coal are feeling it.
Steam business has been quite brisk, on both
screenings and larger sizes. The general indus¬
trial situation seems to be much better, as the
railroads and factories have all been taking
a full quota of coal. In fact some of the rail¬
roads have been out on the open market buying,
something that they have not done for several
years. Undoubtedly the coal trade is better and
more optimistic than it has been for some time,
as it is generally anticipated that there will be
a good market for coal in the next four months.
Standard coal remains about the same, and the
prices are as follows:
F. O. B.
Standard Coal — Mine.
6-inch lump . $1.25
6x2-inch egg . 1.25
2-inch lump . 1.05
Steam egg . 90
No. 1 nut . 1.15
No. 2 nut . 80
Mine run . 85
Screenings . 60
F. O. B.
St. Louis.
$1.82
1.82
1.62^
1.47^
1.72 >4
1.37!4
1.4214
1.1754
There is a heavy demand for screenings and
fine coal from Chicago and the north for coal
from the Springfield and Staunton district. The
lump and egg coals are not moving very briskly,
in fact the steam egg sizes are better than lump.
F. O. B. F. O. B.
6-inch lump . $1.60 $2.07J4
2-inch lump . 1.25 1.82V^
Screenings . 60 1.17^
Southern Illinois screenings have stiffened up
a great deal, and are very scarce and hard to
get. Lump coal is moving only fairly well.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg . $1.40@1.75 $2.02 54 @2.4754
3x2-inch nut . 1.20@1.75 1.9254 @2.4754
Screenings . .66 1.8754
Franklin County is still in good demand, by
dealers, though the mines are not able to quite
realize full time.
F. 9. B. F. O. B.
Mine. St. Louis.
6-inch lump, egg or nut . $1.75 $2.4754
No. 2 stove . 1.50 2.2254
Screenings . 70 1.4254
The demand for anthracite chestnut is unusu¬
ally good, but the larger sizes are very dull.
Smokeless and coke are moving nicely.
Anthracite — F. O. B. St. Louis.
Chestnut . $7.66
Stove or egg . 7,30
Grate . 7.05
F. O. B. F. O. B.
Mine. St. Louis.
Lump or egg . $2.25 $4.76
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.25
By-product coke (all sizes) . 5.00
The prices on Illinois soft coal, f. o. b. East St. Louis.
Madison, Venice or Granite City, Ill., are 20 cents lower
than the above quoted St. Louis prices.
Indianapolis Trade.
Indianapolis, Ind., December 9. — (Special Cor-
responde)ice.)-^The coal operators and dealers in
Indiana who haven’t all or more than they can
do now are few and far between. One sales
representative for a large company says that his
company is on the market for twenty-five cars
a day. While the demand is very strong prices
have not gone up as naturally should have been
expected. Operators are inclined to complain
that the demand is strong but the prices are be¬
low what they should be. It is very likely that
an advance may be made in all grades within a
short time.
Domestic is stronger than it was a week ago,
many sales being around $1.75 a ton for four-
inch coal. Two-and-half-inch domestic is sell¬
ing at $1.50 to $1.60 a ton at the mines. Mine
run ranges from $1 to $1.20 a ton at the mines,
according to the grade. Inch-a-quarter steam
lump is strong. The retailers are doing a fine
business. They have more orders for domestic
than they have had for a long time. There is
a strong demand here for all smokeless domestic
coal. Indiana domestic is also selling well.
The movement of coal is heavier than it has been
for a long time.
The following prices are being quoted by the
wholesalers :
Indiana — •
Mine run. No. 4 .
Mine run. Nos. 5 and 6
Nut .
1 54 -inch steam lump .
No. 4 screenings .
Nos. 5 and 6 screenings .
254-inch domestic. No. 4 .
4-inch domestic. Nos. 4 and 6....
Brazil block domestic .
No. 1 washed coal .
No. 2 washed coal .
Southern Indiana Field —
Mine run .
Domestic lump .
F. O. B.
Mines.
$1.10@1.20
1.05@1.15
1.20@1.30
1.30@1.40
1.25@1.35
.80@ .90
.65® .75
1.50@1.55
1.65@1.70
2.25@2.50
1.75
1.65
f;. O. B.
Indianapolis.
$1.60@1.60
1.55@1.65
1.70@1.80
1.80@1.90
1.75@1.85
1.30@1.40
1.15@1.25
2.O0@2.O5
2.16@2.20
2.75@2.50
2.25
2.15
1.05@1.10
1.40@1.50
Indianapolis retailers are quoting the following
prices : Linton No. 4 lump, forked, $3.25 ; Indi¬
ana lump, forked, $3 ; Indiana lump and egg,
screened, $2.75 ; Kanawha lump, forked, $4.25 ;
Ohio Hocking lump, forked, $4.25; Ohio Hocking
washed egg, $4.50 ; Kentucky, lump, $4.50 ; Ohio
Jackson lump, forked, $5; Blossbur.g, smithing,
$5.50; Cannel lump, $6; Pocahontas, forked lump,
.$0 ; Pocahontas, shoveled lump, $5.50; Pocahontas,
mine run, $4.50; Pocahontas, nut and slack, $3.75;
anthracite, chestnut, $8.25; anthracite, stove and
egg, $8 ; anthracite, grate, $7.75 ; (Tonnellsville
coke, $6; Indianapolis by-product coke (all sizes),
$6.
— Extra Delivery Charges —
Bags, fifty cents a ton extra, ground floor or
dumped in cellar.
Ba.gs, seventy-five cents a ton extra, carried into
cellar.
Charge for chute or wheelbarrows, twenty-five
cents a ton.
Coke, bags, sixty cents, bags in cellar, eighty
cents.
The supreme court has sustained the Clay
county court awarding Samuel Cahall $5,O0K)
dama.ges against the Vivian Collieries Company.
The county commissioners here have awarded
the following contracts : Coal for County Infirm¬
ary, to Globe Coal Company, 1,600 tons of one
grade, at $1.84 a ton ; fifty tons of another grade
at $2.95, and fifty tons of a third grade at $3.65
a ton ; coal for the Workhouse, Globe Coal Com¬
pany, 700 tons at $1.79 a ton; coal for Marion
County Asylum for Incurable Insane at Julietta,
Globe Coal Company, 1,500 tons at $2.09 ; fuel for
the Detention Home, A. B. Meyer Company, sev¬
enty-five tons of coal at $4.90 a ton, and ten tons
of coke at $5.65 a ton.
482
THE BLACK DIAMOND
[December 11
New York Trade.
Car Supply Causes Suspension of An¬
thracite Mines — Bituminous Prices
Continue to Soar.
Office of The Black Diamond,
New York, December 9.
The output of anthracite this month is being
restricted by the short supply of cars. On
Wednesday of this week quite a number of mines
had to lie shut down because of car shortage.
Due to the congestion of freight cars in every
direction throughout the east, this situation does
not promise inii)rovement. In fact there is every
reason to believe that conditions will become much
worse. Notwithstanding the lake trade has closed
so far as shipments from Buffalo are concerned,
the all-rail demand is sufficient to take prompt
care of maximum output, were it possible to
secure it. That coal is very short in the west is
best indicated by the heavy orders that come
from this territory for shipments all-rail.
In the east coal is moving very slowly to tide¬
water ports, and due to the shortage of boats it is
being handled very slowly when it arrives. Water
equipment for trans-shipment is very scarce, and
rates have advanced most radically. In New
York harbor every available boat that will float
is being taken for handling general cargoes so
that those coal shippers or consumers who have
to deal with the trans-shipment of anthracite
when it reaches ports are having a great deal of
trouble unless they own their own transportation
or have such transportation under time charter.
The November production figures will be made
public later in the week. Early estimates place
November production as being slightly heavier
than in November last year. Due to the shortage
of cars that has developed, it is not expected that
December production will reach that of Decem¬
ber last year, notwithstanding the great urgency
that now exists for anthracite that did not exist
at this time last year.
Some of the shippers are very short on egg
and stove, with nut slightly easier. Others report
egg selling at slight concessions, but prompt ship¬
ments are taken at the full circular price. Some
of the individuals report that they are securing
slight premiums on stove.
The steam sizes are in good demand, though
inferior grades of buckwheat are dragging at
tidewater. Rice coal is firm, with barley, espe¬
cially the poor grades showing weakness.
New York anthracite prices are:
Upper Lower
Ports. Ports.
Broken . $5.10 $5.00
Egg . 5.35 5.25
Stove . 5.35 5.25
Chestnut . 5.60 5.50
Pea . 3.55 3.45
special grades of red ash and other high-grade
coals at the lower ports sell at twenty-five to
fifty cents per ton Over above figures.
Spot prices in individual coals at lower ports
are about as follows :
Stove
Nut .
Pea . .
liuck
Kice .
Harley
$5.05 and up
5.20 and up
5.20 and up
3.25 and up
2.30 and up
2.00 and up
1.75 and up
The Bituminous Situation.
The bituminous trade are just now witnessing
a runaway market. It is no longer a matter of
price; the paramount question is delivery. If a
man has coal on cars he can command his own
terms and Tuesday of this week saw coal sell
in Pennsylvania on cars at $3.50 per ton. One
sale of 1,000 tons was reported at this price.
Wednesday buyers in the regions were offering,
$1.85 cash for car numbers, irrespective of grade.
Late last week prices had reached the $2 mark,
but these sales were very few, and the tonnage
involved very small. Monday there was hardly
anything in the Pennsylvania regions resembling
coal, quoted under $1.75, with good coals com¬
manding $2. If coal was on cars or on rails
enroute a better price could be obtained.
The great call for coal at the moment comes
from New England. The situation here is very
tense. The southern coals at Hampton Roads
are in ample supply and prices are easy, but there
are very few boats that can be obtained to take
them to New England points. Tuesday a fixture
was reported at $2.50. This is more than three
times the normal rate. A 5,500-ton boat secured
$2 from Philadelphia. From New York $1.75 was
paid. This makes coal cost considerably above
$5 when unloaded at Mystic Wharf. And so
little coal is going forward that consumers and
middlemen are trying to obtain supplies all-rail
from the Pennsylvania and because there is a
heavy demand for coal from every quarter the
operator is holding the whip hand.
Locally there is a very good demand and coal
is coming to tide very slowly. Deliveries are
very much hampered by the general congestion of
freight on all lines leading to New York and
other seaboard ports. Then, again, there are very
few boats to be had at New York, outside the
regular lines, all of which are under time charter.
Bunkering business is very good. There is a
good call for slack, and only a small tonnage
of it is being made. Therefore it sells in close
line with run of mine.
Car supply is bad on all roads in Pennsylvania,
with the possible exception of the New York
Central. Here operations have a serious labor
shortage, so that the tonnage being shipped is
below normal. Also miners are striking for sun¬
dry causes, some fifteen mines in the Cambria-
Clearfield region being idle due to strikes during
the past week.
The Vessel Situation.
The diversion of every class of vessel, both
sail and steam, not under time charter, to the
export trades, leaves the coastwise trade facing
a most serious shortage of bottoms. Therefore,
those few owners who have vessels for charter
are making their own rates. The highest fixtures
of the past week have been $2.50 on barges from
Hampton Roads to Boston ; $2 on a steamer
from Philadelphia to Boston. For Rio, $8.50 is
being i)aid for schooners.
Current rates are as follows :
h'rom Hampton Roads to Boston, $1.00 to $2.50
is about the range ; to Portland and points east
of Boston, the same. To sound points, $1.50 to
$2.25. From Philadelphia to New England
points, $1.75 to $2.25.
I'rom New York to sound points as follows:
Bridgeport, sixty-five cents; New Haven, seventy-
five cents; Providence, $1 to $1.10; New Bedford,
$1 to $1.15. To Boston, around cape, $1.25 to
$1.75. Harbor rates, twenty-five to thirty cents.
Current quotations on bituminous coal in spot
lots are :
F. O. B.
F. 0. B.
Somerset County —
Harbor.
Mines.
Best grades .
$2.15
Medium grades . .
. 3.55
2.00
Ordin iry .
. 3.35
1.75
Cambria County
Best Miller vein .
2.25
Medium grades .
. 3.55
2.00
Cheaper grades .
. 3.45
l\10
Clearfield County —
Best grades .
2.00
Ordinary grades .
. 3.40
1.85
Indiana County —
Best grades .
. 3.45
1.90
Medium grades .
. 3.35
1.85
Maryland —
Georges Creek big vein .
. 3.75
2.25
West Virginia —
Ordinary grades .
. 3.25
1.85
Best gas, ^-inch lump .
Best grade, run of mine .
. 3.25
1.85
. 3.25
1.85
Gas slack .
1.15@1.45
New York Trade Briefs.
Robert Hasler, Norfolk manager for Hasler
Bros., Inc., spent last week at the New York
offices.
R. R. Reutingler, treasurer of W. H. Bradford
& Co. of Philadelphia, was in New York last
Tuesday.
W. J. Richards, president of the Philadelphia &
Reading Coal & Iron Company, visited New
York on Tuesday.
E. E. White, president of the E. E. White Coal
Company of Glen White, West Va., was a New
York visitor on Monday.
D. B. Zimmerman of Somerset, Pa., president
of the Quemahoning Coal Company, spent the
week end in New York.
Jesse L. Eddy of Dickson & Eddy, No. 17
Battery Place, has returned from a two weeks’
stay at Hot Springs, Va.
A. B. Crane, New York manager for H. H.
Lineaweaver & Co., No. 17 Battery Place, spent
Tuesday this week in Philadelphia.
S. B. Cary, Roanoke, Va., manager for Castner,
Curran & Bullitt, Inc., was a visitor at the New
York offices of his company on Monday.
George F. Getz and Norman S. Birkland, presi¬
dent and secretary respectively of the Globe Coal
Company of Chicago, were New York visitors
late last week.
W. R. Minds, New York manager of the
Bulah Coal Mining Company, No. 120 Broad¬
way, visited the mines of his company in Clear¬
field county over the week end.
Cuban coal freights have advanced, $4 being
the rate asked this week to common Cuban
points. To keep in line, vessel owners were ask¬
ing $1.75 from Hampton Roads to Boston.
S. W. Adsit, general freight and passenger
agent of the Virginian Railway, was up from
Norfolk on Tuesday, and was a caller at several
of the coal offices at No. 1 Broadway.
E. R. Wadleigh, the well known coal engineer,
who makes his headquarters in Philadelphia, re¬
turned this week on the Holland-America Line
steamer, from a two months’ European trip.
The New York Coal Merchants’ Association
will hold its annual meeting next Tuesday, the
14th, at which meeting the report of the ensuing
year will be made and general business discussed.
D. A. Thomas, the Welsh coal magnate, who
was in this country for five months in the interest
of the munitions department of the British gov¬
ernment, reached Cardiff on Monday of this
week.
A. C. Lammont, of Scranton, chief mining en¬
gineer of the D., L. & W. Railroad Company,
was on Monday appointed general superintendent
of the mining operations of the company, suc¬
ceeding Col. R. A. Phillips, who resigned on
account of ill health.
The Pennsylvania Society of New York will
iiold its annual dinner on Saturday evening at
the Waldorf. This dinner is largely attended
l)y native Pennsylvania people now residing in
Mew York state, among whom there is a good
delegation of coal men, while many coal men in
the regions come to New York to attend this
event.
New Yorkers hear many rumors these days of
l)ig enterprises. During the past few weeks there
have been numerous rumors about new enter¬
prises, especially in the shipbuilding line. This is
one industry that is most active just now, the
repair plants along the Atlantic seaboard reeking
in prosperity, as well as the plants that build
anything from a battleship down. One rumor
has it that some very big undertakings in the ship¬
building line are to be started somewhere along
the Staten Island shores, between Constable Hook
and the lower coal ports, on the Kill Von Kull.
Added to this, the shipbuilding plant on Shooter
Island, also near the Kill, is becoming very
active. This plant is being rebuilt practically, and
put in condition to turn out the large size freight
steamers, and rumor has it that orders are
crowding upon its proprietors. A recent inquiry
for 10,000 tons of steel plates is said to be for
this plant, to be used in the construction of two
9,000-ton steamers. Some of the shipbuilding re¬
pair plants on New York water fronts are said
to have all the business that they can take care
of in the repair lines, and that price is no object.
Boats of all kinds are such money makers at
this time that when they require repairs their
owners do not stickle over terms, but rather for
speed.
Here is how a prominent anthracite authority
sized up the situation this week : “The anthracite
trade is good. We are not in a panicky state
yet, but we have found the demand so very good
that we have not thought that it was good policy
to take on new customers. Also, we have not
felt inclined to give some of our old customers
all the coal that they have been clamoring for.
We recognize that coal is going to be scarce,
and we are sharing our shipments as equitably as
we can, between all of our customers, trying to
give them all an equal show. As is always the
case, there are some who appreciate the tense
situation more than others. In their zeal to get
protected they naturally order more coal than
they really need, and more in fact than they ex¬
pect us to ship them, but they hope that we may
be so eager for business that we will rush to fill
their orders in their entirety. We have seen this
situation coming. As a matter of fact, some two
months ago we tried to interest the dealers into
taking liberal shipments while conditions were
favorable. Well, most of them are human, and
it is human to procrastinate. Hence, here we are
in the first real winter month, with coal short in
every direction, with wintry weather upon us,
and production at maximum, and still not coal
enough to go around. It is going to be a serious
winter for some, and, in our opinion, it is going
to be an entirely different market situation from
any that we have had in previous winters.”
The D., L. & W. Coal Company will load coal
after December 20 over the docks of the Erie
Railroad Company on the Blackwell canal, ap¬
parently continuing its season into winter storage
cargoes, as it has before. This is on account of
the fact that the D., L. & W. coal trestle will
have to be .given up this fall, by order of the
government.
No. 24]
483
Philadelphia Trade.
Consumers Enter the Market in Force
and the Shortage of Cars Puts
Up the Prices.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, December 9.
All the fireworks necessary to make it the “wild¬
est market since 1903” were injected into local
conditions in the past week. The scurry to get
coal has made a range of prices that consumers
who have been caught short can scarce realize.
And the consumer is now in the market. It has
passed beyond the middle man and the broker
stage. During the week more inquiries were re¬
ceived from the actual users of coal than for
some time past. Each day has seen this increas¬
ing. By the entry of this strong factor coal men
say that little possibility of a break under the
strain now appears. January and February may
have downward flurries, but high prices being es¬
tablished now will continue until after the pass¬
ing of the April crisis.
The car shortage has again tightened and is
more distressing than has been in the past two
months. A statement from the Baltimore & Ohio
railway shows that 18,000 cars are on foreign
lines with little prospect of getting them back in
service to help out. The Pennsylvania railroad,
through blockades and embargoes, has been fur¬
nishing lower than one-half of its allotments.
The coal shortage in New England has been play¬
ing hob with lines which tap the central fields of
the state. Even the hard coal carriers are throw¬
ing up their hands at the alarming shortage that
has been staring them in the face.
Prices vary with each hour, so that a collec¬
tion of figures as will be quoted hereafter were
those which were gathered on Wednesday morn¬
ing and were given a further upward impetus by
a flurry of snow — the first white mantle of the
winter. Western Maryland coal has been the
most active in this market, and sales were made
on ordinary grades at $1.75 to $1.85. Freeports
held a dime higher with actual transactions as
high as $1.95. Big Vein Georges Creek was held
at $2.25 to $2.50, though little free coal of this vein
was to be found on the market. Quemahonings
were held on a range of $2 to $2.25, with a couple
of good blocks selling at $2.10.
A sale of Clearfield coal at $2'.10 marked the
high-water figures for years. At Osceola mills,
in the regions several sales were made at the
even two-dollar mark on Tuesday and Wednes¬
day. A block of coal “for shipment within a
week” from the Beech Creek section was sold
Tuesday at $1.92^ a ton.
A salesman with coal from the Allegheny sec¬
tion of the Pennsylvania railroad dropped into
town with about a hundred cars of coal to sell.
This carries a freight rate of forty cents higher
than the minimum. The figures at which the
sale was made were not disclosed, but the turn¬
over was completed within an hour.
Fairmont coals, also carrying the high freight
rate, have been doing all sorts of acrobatics. Size
and preparation cut little figure, run of mine in
some cases selling higher than three-quarter sizes.
The range was $1.20 to $1.40.
Coal at the piers, which has held fairly steady
even in the face of the jumping market for free
coal, took a boom upward this week. Quotations
on B. Miller vein and Somerset county coals
have been made for delivery there at $1.75 f. o. b.
mines. Shipments for export have been cut away
down, but bunkerage has increased considerably,
and that is given as the cause for the flurry.
One marked feature to the market is the fact
that no quotations can be had for deliveries that
extend further than a week or ten days and some
operators who promised to have quotations from
January 1st on say that they doubt if they will
be able to enter the market for several weeks
later.
Anthracite Situation
Pea coal is again to the forefront. Both the
independents and the companies are inclined to¬
ward strong indications that the circular price of
$2.50 will be maintained after the first of the
year. Several contracts that were made up to this
date are to run out and the full circular price will
mean a considerable change in the local retail
attitude. With soft coals selling at high figures,
the anthracite people figure that their coal should
at least bring set prices.
Shortage of cars in the hard coal regions has
made deliveries slow, and some of the small yards
in this and other cities have felt the pinch result¬
ant. Steady customers are getting a preference.
THE BEACK DIAMOND.
but even these have not been getting the total
shipments that they have asked for.
Steam sizes are again strong, and while there
have been a few instances of a premium being
paid on the Jersey lines that are first to feel this
upturn, it can be said that the premium will be
general before a great while. Egg sizes, which
dropped back twenty-five cents on the ton, have
recovered this lost ground and are now being
held firm at the circular. Nut and stove coal is
also in good demand and has been well taken.
Shipments over the piers to New England
points have shown a considerable increase within
the last fortnight. The reason for this, as given
by shipping men, is that the shortage on ship¬
ments from Virginia points has turned greater
attention to the anthracite.
Philadelphia News Notes.
Mr. Anderson of George E. Warren & Co.,
Boston, was a trade visitor.
Mr. Baker of the Keystone Coal Company, with
headquarters in York, Pa., was one of the visi¬
tors of the mid-week.
Max Voelker of Buffalo, representing the
Youghiogheny and Ohio Coal Company, was seen
among the trade visitors.
E. J. Skeele, president of the Skeele Coal
Company of New York, made a flying trip for
trade purposes early this week.
A. A. Zane, representing F. W. Foedisch & Co.,
made a trip to the mines in central Pennsylvania
district the early part of the week.
President D. B. Zimmerman of the Quema-
hofiing Coal Company paid a visit to the local
offices of his corporation this week.
J. Edgar Long of the J. Edgar Long Coal Com¬
pany of Clarksburg, W. Va., spent a couple of
days here going over the local situation.
John Thomas of the Kraemer Coal, Coke and
Stone Company of Johnstown, Pa., was one of
the interested spectators of the quick turning
market as seen in this city.
H. C. Burnett, president of the Atlantic Crushed
Coke Company of Greensburg, made a tour of
the market in the east this week and was in
Philadelphia on Monday and Tuesday.
J. A. Boucher of the Beaver Run Coal Com¬
pany of Beaverdale, was in the city on Tuesday
attending a directors’ meeting, which was held
in the company’s offices in the Pennsylvania
building.
William F. Coale of Cumberland, Md., who is
one of the lucky ones who have coal to offer in
these days of a tight supply, dropped into the
iQcal offices of his company, after a trip to New
York the forepart of the week.
R. G. Harris, who was in the sales department
of the Davis Colliery Company in their local of¬
fices, is now associated with the Cortright Coal
Company. Prior to coming here, Mr. Harris was
the Washington manager for the White Oak Coal
Company.
The Cortright Coal Company has been elected
a member of the American Manufacturers’ Ex¬
port Association. The members represent some
of the strongest firms in this country who are
interested and are furnished with information
on export prospects.
Howard Pfeiffer, who has been the local repre¬
sentative of the Chaffee Coal Company in this
market for several years, has incorporated the
firm of H. Pfeiffer & Co. under the New Jersey
laws. The new corporation will continue to han¬
dle the output of the Chaffee mines on the west¬
ern Maryland, together with other high-grade
coals.
Invitations have been issued to the coal men
who are members of the Chamber of Commerce
to meet with Mr. Davies of the Lehigh Coal and
Navigation Company and George Van Dusen of
Van Dusen Bros., at a dinner to be given the
coal trade group at the Manufacturers’ Club on
Thursday. While none of the tentative plans
has been made public, it has been learned that
this is intended as a stepping stone toward inter¬
esting the coal men in the formation of an ex¬
change where all can meet upon a common
ground. Other cities have found the plan very
successful, and Philadelphia should be in line for
a movement of the kind.
The Coal & Delivery Company of Maine, with
a capital of $1,000,000, has just been granted a
Maine charter. The incorporators are: William
M. Bradley, Portland ; B. L. Merryman, South
Portland, Me.; Charles C. Upham and Arthur
Gardner, of New York City, and Karl R. Miner,
of Yonkers, N. Y.
Buffalo Trade.
Buffalo, N. Y., December 9. — {Special Cor¬
respondence.)- — The November shipments of an¬
thracite by lake amounted to 443,900 tons, com¬
pared with 597,495 in the same month last year.
I'he total shipments to December 1st this year
were 3,757,146 tons, against 4,292,510 tons in that
period of 1914, a falling off of over twelve per
cent. Since the month opened the shipments have
been 78,926 tons, of which 35,800 tons cleared
for Duluth-Superior, 20,126 for Milwaukee, 19,200
for Chicago and 3,800 for Fort William. It is
likely that the shipments will run over 100,000
tons this month. That amount is usually the
maximum for the last month of the year. In
December, 1914, shipments were 93,700, and in
December, 1913, they were 103,100. The insur¬
ance expires next Sunday night.
There is a prospect of a large amount of win¬
ter loadin.g of coal cargoes here, for which two
good reasons exist. There is plenty of coal and
the shippers have a notion that if they do not
take advantage of the large fleet wintering here
they w'ill have trouble getting tonnage in the
spring, as so much of it has already been taken
for ore.
Anthracite demand from retailers is not heavy
at present, though they are taking a good quantity
of chestnut. It will require colder weather than
that so far this month to stimulate much busi¬
ness. As soon as it grows colder it is expected
that business will be good and that a coal short¬
age will be experienced. Already cars are getting
scarcer.
Bituminous demand has been showing much
increase in the eastern market and shippers are
selling a lot of coal there at prices much above
those recently charged. The Allegheny Valley
and Reynoldsville operators all have gathered
up many orders and are able to place all the
coal they can mine. Smokeless coal has become
quite scarce and is bringing a premium. Scarcity
of labor, and to some extent of cars, is keeping
mining output down considerably, and a good
deal of labor trouble has developed at certain
mines, which have lately decided to suspend oper¬
ations until a settlement can be reached. The
closing of the lake season has not been followed
as was expected by a drop in coal prices, and
the outlook is for a strong market during the
winter, unless the industrial boom in the east
comes to a sudden end.
The coke market remains strong, but at a
slightly lower level than reported a week or two
a.go.
Omaha Trade.
O.MAHA, Neer., December 9. — {Special Corre¬
spondence.) — Prevailing warm weather here has
left local dealers, as well as those throughout
the state, with heavy stocks. Durin.g the latter
part of the past week, there were very slight
flurries of snow and a threatened drop in the
mercury. The result was a general shortage on
the market for steam coal early this week, fac¬
tories and plants demanding spot deliveries. The
immediate future promises a continuance of prev¬
alent fair weather and very little buyiag of spot
coal.
The car situation has not affected this market
as yet and there seems to be plenty of box cars
at tbe docks, and shipments are being made
promptly on anthracite and splint. Colorado coal
seems to be quite plentiful and prices on Maitland
and Loutt county are fairly weak. All rail coal
shipments are coming forward a little slowly.
There is a contemplated advance of ten cents
per ton on freight rates on anthracite, although
this has had but slight effect on local trade. Many
dealers, however, believe that this will influence
the market toward petroleum coke and semi-an¬
thracite coals, the demand for which is steadily
increasing here.
Slack coal is strengthening very materially.
Cherokee slack is very scarce and strong at $1.35 ;
Cherokee mill is bringing $1.50 and Cherokee nut
is in good demand at $2. Iowa screenings have
hovered around seventy-five cents and eighty
cents. The market has been weak on Franklin
county coals, the better grades of which are
quoted at $1.75; other grades are quoted at $1.40
to $1.50. Montgomery county lump is going at
$1.25, while egg and nut from this locality com¬
mand $1.25 and $1.50 respectively. Springfield
district grades are quoted as follows : 3x2 nut,
$1.1.5, and 6x2 e.gg, $1.10. Iowa mine run hovers
at $1.35 and walnut block at $2.
Anthracite has been selling at from fifteen to
twenty-five cents off circular in all sizes.
484
New England Trade
Boston, December 9. — (Special Correspond¬
ence). — The all-aljsorbiiiff topic of conversation
among the local wholesale anthracite and bitumi¬
nous trade is the marine freight rate market;
and its attending influence upon the price of coal.
The demand for space from Hampton Roads
ports and from New York is so keen and the
available supply so limited, it is somewhat diffi¬
cult to secure reliable rates because of their
erratic movements. Certain it is, however, that
rates are probably higher today than they have
been before in the history of the coal trade.
Nor does it look at the moment that the top
has been reached. The fact that the New Eng¬
land Coal & Coke Company a month or so ago
secured practically all of the available ocean
space for 1910, has had its influence upon the
present market.
It is understood that as high as $1.15 per ton
has been asked and secured for space from New
York to Providence since last reports. From
New York to Pawtucket charters at $1.25 per ton
have been made, and from New York to Boston
as high as $1.50. These rates are undoubtedly
the most extreme paid. On the other hand it is
understood that nothing less than $1.10 per ton
has been accepted recently, whereas a month
ago the general asking rate was fifty or fifty-five
cents. From Hampton Roads ports to Boston
the bulk of the recent charters are said to have
been on a basis of $1.60 per ton, and we hear of
one instance where a ship-owner received as high
as $2. Tuesday, $2.50 was reached.
To say that the local wholesale bituminous
market is booming is putting it mildly, for it is
in reality truly excitably buoyant. Stran.ge to say,
however, the retail price of soft coal is unchanged
at $4.40 per ton, and most of the largest distrib¬
utors feel that it is not likely to advance this
year because most of them are fully protected
liy contracts. The strength of the market, then,
can be ascribed to buying almost wholly among
the wholesale dealers themselves. Dealers having
contract coals to deliver have been obliged to
go into the open market at Mystic Wharf and
cover. As a result it is doubtful if any New
River and Pocahontas has sold at that point dur¬
ing the past week at less than $4.50 per ton.
Some of the trade predict $6 coal if shipping
conditions do not improve within the next fort¬
night. Dealers handling Georges Creek coals at
Mystic Wharf have virtually withdrawn from
the market because of their oversold condition.
Small lots of this coal have been sold as high
as $4.75 per ton. The demand for old contract
coals is wonderfully good, much to the dis-
comforture of dealers, and there is considerable
sounding of the market for 1916-17 quotations. The
all-rail Pennsylvania bituminous market has been
greatly benefited by the unfavorable water trans¬
portation market, coupled with a real car short¬
age. The poorest grades that a month or so
ago were .going begging at ninety cents a ton,
are now selling readily at $1.75 per ton on cars
at the mines, and from that, prices have ranged up
to $2.25 to $2.50 per ton.
The wholesale anthracite market is very strong,
Init prices have not changed noticeably among
the shippers of bi.g company coal. Many of the
local trade feel, however, it is but a question of
a very short time when there will be a gen¬
eral marking up of values in sympathy with the
independent schedule, especially now that the
Interstate Commerce Commission has refused
to open the case involving rates from the an-
tliracite fields to the seaboard. One dealer says:
“The soft coal fellows are having their troubles
in trying to keep up with steadily advancing
prices and the consumers with .getting supplies.
I'or the moment anthracite has been pushed into
the background. But wait another two weeks
and I believe you will see some fireworks in
hard coal prices, especially if the eastern section
of the country should experience two or three
snow storms which would practically tie up the
all-rail movement.” During the past week the
demand for hard coal has been exceptionally
good, but the high water rates has curtailed actual
business. In other sections of New England
new orders have been booked daily and orders
are accumulating because of dealers bein.g unable
to make deliveries. At Mystic Wharf stove and
egg are strong at $6.20 per ton on cars, and nut
at $6.45. Alongside Boston Harbor prices are :
Stove and eg.g, $5.85; nut, $6.10; broken, $5.10:
pea, $4.05 per ton. No 1 Buckwheat is still
mioted on a basis of $2.85 per ton f. o. b. New
Vork • No. 2. $2.90; No. 3, $1.60, and Bird’s
Eye, $2, and all are scarce.
THE BLACK DIAMOND.
New England Trade Notes.
A Worcester dealer is predicting $10 anthracite
by another winter. Boston retail prices are un¬
changed, but dealers say almost anything is apt
to happen any moment.
The T. J. Sullivan Coal Company of Spring-
field, with a $25,000 capitalization, has just been
granted a Massachusetts charter. The incorpo¬
rators are: Timothy J. Sullivan, Jr., George B.
Corcoran, and Mary G. McDonough.
The employes of the Metropolitan Coal Com¬
pany’s Winthrop branch are planning a series of
bowling matches during the winter. The town
of Winthrop has apparently gone mad over bowl¬
ing, and the Mets claim they have some pin drop¬
pers.
I'ollowing are the receipts of anthracite and
bituminous at Boston for November and the
eleven months ended November 30, together with
comparisons (in tons) :
November —
Anthracite
Bitum.
Anthracite
Bitum.
Sea, domestic. ,
. . 123,232
337,044
131,706
412,141
Sea, foreign . . .
20,081
56,093
Rail .
. 30,132
8,074
16,327
4,543
Totals .
, . 153,304
365,799
148,033
472,777
For January 1 —
Sea, domestic ... 1,390,526
4,254,802
1,600,011
4,540,433
Sei, foreign..
367,579
209,860
Rail .
. 165,018
72,499
178,523
49,673
Totals .
. .1,555,544
4,694,880
1,778,534
4,800,016
Baltimore Trade.
Baltimore, Mn., December 9. — (Special Corre¬
spondence.) — The coal trade here is busy adjust¬
ing itself to the best possible advantage to sev¬
eral unusual conditions, and with only partial
success. Car shortage has become so acute that
the non-delivery of fuel has caused conditions of
lack of coal at some consuming points, when oth¬
erwise everything would be sailing smoothly. In
other words, the present demand for coal, while
fairly healthy, is. by no means abnormal, and in
fact below standard in some cases, and yet mines
with a plentiful supply of fuel at base are un¬
able to ship coal promptly because the car supply
is running in various districts at but thirty to
seventy per cent of requirements.
Then the high ocean freight rates have put
a serious handicap on export movement. The
past week saw a loading of less than 12,000 tons,
and while the present week promises to furnish a
somewhat better total, it will still be far below
recent standards. The entire month of November
saw a foreign movement of Init 43,836 tons from
this port.
Another unusual condition is that an artificial
price list has been created by purchasing between
shippers and operators, etc., in order that contract
obligations can be filled at least nearly in full.
Much of this purchasing, to prevent regular cus¬
tomers being disappointed in coal needed to run
industrial plants, has been at a loss to the supply¬
ing agency. The result has been that coals are
at times selling at prices probably from forty to
fifty cents above what would be the case were
cars available at the mines. Those with individ¬
ual cars in fact are getting fairly low prices on
surplus fuel at mines that cannot be moved by
allotment of railroads to the particular operation.
Lhider such circumstances, it is hard to fix a
price schedule. The rates quoted herewith are
what many have paid the past week in covering
weak spots of delivery. Should a big change
come in car supply, as. many are predicting early
in January, the probabilities are for a much weak-
er price list. Prices are :
F. 0. B.
F. 0. B.
Fairmont Ordinary —
Mines.
Mines.
Three-quarter . ' .
$1.50
$2.98
Run of mine .
1.20
2.63
Slack .
1.05
2.48
Somerset —
Best .
1.05
2.78
Good .
1.60
2.58
\V. M. R. R.—
Freeport . <. . . .
1.40
2.58
B. & O. R. R.^
Freeport .
2.63
P. R. R —
Best South Fork .
1.60
2.78
Miller vein .
1.50
2.68
The anthracite situation
here, too, is
becoming
more complex. With the rush of demand from
household interests that came with colder weath¬
er, a shortage in certain sizes developed. Mines
are lieing urged to rush coal, but all are far
liack on their orders.
A contest that interests the trade somewhat
just now is for the possible introduction of natu¬
ral gas into Baltimore from West Virginia. The
Columbia Gas Company has approached the local
Consolidated Gas, Electric Light & Power Com¬
pany, and their ])roposition refused. They now
threaten a separate invasion.
[December 11
Detroit Trade.
Detroit, Mich., December 9. — (Special Cor¬
respondence.) — While the amount of stock han¬
dled does not show any special increase in ton¬
nage, in the Detroit market the steam coal
trade seems to be maintaining a .good degree of
activity, and there is a little better demand for
domestic coal due to continued low temperature.
Interest in small sizes appears most pronounced
in the steam coal buying and orders for stock
of that character are coming to shippers more
frequently than for the larger coal. The stock
to meet requirements seems available, though
occasionally a little extra effort is necessary to
obtain delivery promptly.
Just now egg coal is seemingly slower of move¬
ment than any of the other sizes. The supply,
however, is not excessive and even the egg size
is finding buyers, without serious delays.
Weather conditions have brought an increase
in the buying of domestic coal through retail
dealers and shippers are participating to a moder¬
ate extent in the improvement of conditions.
All through the season the sale of domestic coal
and anthracite has been backward and it is ex¬
pected there will be an appreciable increase in
activity in that branch of the trade in the near
future.
There is a considerable amount of consignment
coal coming into Detroit. The stock seems to find
a ready niarket and durirtg the week little or
none of it remained long enough on railroad
tracks to approach the demurrage stage or neces¬
sitate cutting prices to force sales. For a few
days, there is said to have been an excess of
smokeless lump and there are reports that some
of the stock was offered at $2 with freight to
be added, tbou.gh the schedule of $2.25 is asserted
to be generally maintained.
Sales of anthracite are not equal to expecta¬
tions, despite the curtailing of shipments for two
weeks by the embargo on the Grand Trunk Rail¬
road lines. The embargo was raised at midnight,
December 4th, and conditions on the Grand Trunk
are now described as favorable to continuance
of operation without restrictions.
To obtain carriers for delivery of late coal
cargoes on Lake Michigan, some shippers have
paid seventy-five cents a ton or forty-five cents
more than during the summer. Shipments to
Lake Superior ports have taken an advance of
about 15 cents making a forty-five-cent rate in
some instances. The statistical report for the
waterways at Sault Ste. Marie shows that in
November 233,708 tons of anthracite and 1,343,248
tons of soft coal passed through the canals. This
compares with 339,344 tons of anthracite and
2,798,416 tons of soft coal in November last
year and with 291,768 tons of anthracite and
1.345,473 tons of soft coal in November, 1913.
Some shippers are now making arrangements to
obtain vessel capacity to be used in storage of
soft coal at Lake Erie ports during the winter.
Prices in the local market
on direct
shipment
orders are as follows :
West Virginia Gas —
F. O. B.
Mines.
F. 0. B.
Detroit.
I hree-cjuarter lump .
$1.10
$2.50
Mine run .
2.30@2.40
Slack .
.75® .90
3.15®3.40
West Virginia Splint —
Four-inch lump .
1.50@1.75
2.90@3.15
Two-inch lump .
1.25®1.40
2.05@2.80
Three-quarter .
1.05@1.10
2.45@2.50
Mine-run .
.90
2.30
Nut, pea and slack .
.75@ .90
3.15@3.40
Smokeless —
I.ump and egg .
2.25
3.85
Nut .
1.75
3.35
Slack . .
Open
Open
Mine run .
1.40
3.00
Kentucky Splint —
Lump .
1.75@2.00
3.15@3.40
Kgg .
1.25@1.40
2.65®2.80
Nut, pea and slack .
.75® .90
2.15@2.30
Fairmont —
Three-quarter steam lump .
1.10
2.50
Mine run .
2.35®2.40
Slack .
Open
Open
Hocking Valley —
Shaker three-inch lump . •. . . .
■ 1.60
2.75
Shaker egg and nut... .
1.25
2.40
Domestic lump .
1.50
2.65
Three-quarter lump .
1.35
2.50
Mine run .
1.00@1.10
2.15@2.25
Nut, pea and slack .
Open
Open
Pittsburgh No. 8 — •
Three-quarter lump .
1.05
2.20
Mine run .
.95
2.10
Slack .
Open
Open
Jackson Hill —
Domestic lump . .
2.50
3.65
Cambridge —
Three-quarter lump .
1.20
2.35
Mine run .
1.10
2.25
Pomeroy —
Two and three-inch lump .
1.60
?.75
Kgg .
1.35
2.50
Slack .
.75® .90
1.90@2.C5
1
Phe Black Diamond
Vol. 55. No. 25
uMBus DECEMBER 18, 1915 S^sbSrgh Per Year
What America Has to Offer in Quality of Coal.
When an American coal producer offers to
sell fuel to a consumer abroad, quite a num¬
ber of important and pertinent questions arise.
These questions in numerical order are:
First: — What quality of coal has America
to ofi'er? What quantity of that coal is now
being produced?
Second: — What is the financial responsibil-,
ity of the companies which produce this coal?
In a word, if they sell coal are they equipped
financially and with transportation facilities
to make the delivery?
Third : — What dependence can the buyer
place in the regularity of delivery? That is,
what is the labor situation in the various dis¬
tricts where this coal is produced?
The questions are essential and fair. The
buyer of coal has a right to ask any one or all
of them; in reality, he should make such in¬
quiry. The American coal company which
offers itself as a prospective source of supply
to the foreign buyer has no objection to an¬
swering any one or all of them. Therefore,
this article attempts in a superficial way to
answer all of them to all of the buyers on be¬
half of all of the producers.
Heretofore when this publication has di¬
rected foreign attention to our coal offerings
it has devoted itself to the generalities mainly,
i. e., to the general character of the coal com¬
ing from different parts of the country; to
general statements about finance and trans¬
portation and to general assertions about
labor. Thus in previous export issues we have
shown that our better grades of coal come
from the eastern part of the country. To im¬
press this fact home, we have reproduced
maps showing that the coals available for ex¬
port are also near to tidewater, which is
reached by excellently equipped transportaton
lines.
Those statements were made when our cam¬
paign for foreign trade was just beginning. In
a way, therefore, our earlier statements were
purely preliminary and introductory. They
disclosed only the broad source of our coal
supply without going into any detail about
either quantity or quality.
Inquiry Becomes Specific.
In the last year, however, foreign inquiry
has crossed the line between the general and
the specific. Foreign buyers are no longer
interested in such broad considerations as the
character of the coal coming from a producing
zone which may cover several counties or a
whole state and which may stretch away for
fifty or one hundred miles in a given direc¬
tion. They want to know today about specific
coals, in definite districts. They want to know
in detail about the chemical analysis of that
coal.
Foreign buyers also want to know not the
general reputation of all the coal companies
in a certain field, but in dollar and cents de¬
tail about the standing of certain concerns in
America which produce the coal they are
about to buy.
The foreign buyers do not care today for a
general statement about our labor situation,
but something of detail about the supply of
miners and their attitude towards steady em¬
ployment.
Perhaps the best way to approach this big
subject is to treat our coal offering, not ac¬
cording to the county in which it is mined, or
any other geographical subdivision in which
it is found, but by the geological seam which
yields, supplement this by showing in detail
the average quality of that seam, as found at
the points where it is now worked; the uses
to which that coal can be put; and, an idea of
the amount which annually is produced.
In detail, we produce many coals which run
under twenty-five per cent in volatile and
hence are good for steam. We produce a
much greater number of high volatile coals.
We will treat the steam coals first.
The first American coal to be called to the
Seven Leading Veins Offer a Low Vola¬
tile Coal for Steam Making — Fourteen
Veins Yield Fifty Grades of Gas and Cok¬
ing Coal.
attention of European buyers — that was some
twenty-five or thirty years ago — was sold then
and is sold now under the trade name of
Pocahontas. This coal runs from fifteen to
eighteen in volatile matter and ranges from
seventy-four to about seventy-eight per cent
in fixed carbon. The geological seam from
which this is taken is known as Pocahontas
Number Three vein, which is found in rela¬
tively a small area in the eastern part of West
Virginia. The true Pocahontas coal is found
only in the Number Three seam, which meas¬
ures from seven to eleven feet in thickness.
The coal itself is very friable. It has the
peculiar characteristic that the fine coal burns
just as well as the lump; in fact, no American
users, except possibly a few householders,
make any point of the size. They prefer the
mine run at a fair price rather than pay any
premium to get the lump.
The true Pocahontas coal has exceptional
merit for coke making. For a gas coal, the
percentage of volatile matter is entirely too
low. It is excellent for steam use.
Something like twenty companies are now
engaged in the production of this coal. They
operate mines which, considered jointly, have,
easily, a productive capacity of 20,000,000 tons
per year. Perhaps as much as 5,000,000 tons
of this is available for export if a satisfactory
market can be found. This same percentage
of possible exports to production will apply
for some time in future, because the undevel¬
oped acreage is so extensive, existing mines
will, with no difficulty, increase their output
as demand grows.
As to the financial responsibility of the con¬
cerns which produce this coal : That is not a
matter which can be treated in detail in these
columns. It must suffice to say that some of
the strongest coal houses in America have
producing plants in this field. One, for ex¬
ample, has resources in mines, docks, ships
and working capital aggregating easily $25,-
000,000. Others, while not so big, have re¬
sources ranging from $1,000,000 up to $15,000,-
000.
New River Coal.
Another coal of almost identically the same
kind is now being offered in the export mar¬
ket. It is known as the New River coal. It is
produced, to an extent, in the same counties
from which is obtained the Pocahontas.
Mainly, it is produced a little to the west. The
two seams which yield this coal are known lo¬
cally as the Beckley and Fire Creek.
In chemical properties. New River coal is
almost identical with Pocahontas. That is,
the volatile matter runs from sixteen to
twenty per cent and the fixed carbon from
seventy to seventy-eight per cent. This coal,
like true Pocahontas, is very low in ash; runs
less than one per cent in sulphur; and is par¬
ticularly free of moisture. This is indicated
by the fact that impurities in the aggregate
take up less than eight per cent of the coal
volume.
Like Pocahontas coal. New River is very
friable; is especially adapted for coke making;
but is used with excellent results in steam
production.
The financial responsibility of these pro¬
ducers is indicated by the fact that one of
them is a large smelting interest having re¬
sources, all told, of more than $100,000,000.
Another has coal resources valued at $10,000,-
000.
Tug River Coal.
Tug River coal is the product of a vein
known in West Virginia as Number Four or
Tug River seam. It overlies the Number
Three or Pocahontas seam and is found in
about the same territory. At the point where
the true Pocahontas vein dips so far below the
surface it is no longer available for mining un¬
der present conditions, the Number Four or
overlying vein becomes available and is mined
extensively. It produces a coal almost identi¬
cal with true Pocahontas and New River coal
or, in other words, a fuel which never exceeds
twenty per cent in volatile matter and ranges
up to seventy-six or seventy-seven per cent in
fixed carbon.
As a matter of fact, these three coals— Poca¬
hontas, New River and Tug River — are con¬
sidered in America to be identical fuels, even
though produced by entirely different mining
corporations from entirely different veins and
moving to market by different routes of trans¬
portation. They are all known by the generic
term of smokeless coal and, as such, sell inter¬
changeably in our most discriminating mar¬
kets.
The leading producer of Tug River coal has
financial resources running into millions of
dollars.
The true Pocahontas coal is moved to tide¬
water by the Norfolk & Western. The true
New River coal is moved by the Chesapeake
& Ohio. The Tug River coal takes those two
lines alternately and then moves, in part, by
the Virginia Railway.
Ocean Smokeless Coal.
A coal which is very similar to these three
is known locally as Ocean Smokeless coal,
from the state of Maryland. These mines are
a little closer to tidewater than are the West
Virginia mines, but otherwise the situation is
almost precisely the same. Ocean Smokeless
is a little more friable even than Pocahontas.
It seldom exceeds eighteen per cent in vola¬
tile matter; runs as high as seventy-nine per
cent in fixed carbon; and is exceptionally free
of impurities.
The one predominant characteristic of these
four coals is that they take fire quickly; dis¬
pense with practically all of their gases in the
first fifteen minutes after firing; and yet hold
fire for about the same time that anthracite
does, regardless of the fact that anthracite is
a coal which ignites very slowly.
The Kittanning Coals.
In parts of western Maryland and in parts
of eastern central Pennsylvania — this means
that the deposits are very close to tidewater —
are found two seams of coal known as the
upper and lower Kittanning. These veins have
been under development in that section of the
country for forty years or more and have by
long use established themselves as of a given
character.
The coal from the Kittanning seam is known
as our premier smithing coal and, of course, is
available for steam making where the steam
user insists, as do the foreign buyers, upon a
coal running low in volatile matter. Analysis
of this product shows that it runs less than
.75 in sulphur; less than twenty-three per cent
in volatile matter and in the neighborhood of
seventy to seventy-four per cent in fixed car¬
bon. On the average this coal runs less than
eight per cent in ash and has a B. t. u. value
of around 14,500.
This coal, in addition to being first-class
smithing coal, is one of America’s best steam
products and is available for coking purposes.
It moves to tidewater over a relatively short
route, primarily by the WTstern Maryland
Railroad, one of our principal coal carriers.
From certain districts it has advantage of
transportation by the unexcelled Pennsylvania
Railroad.
.'\s to the financial responsibilities of the
companies which produce this coal, it need
only l)e said here that some of the strongest
coal houses in .America have plants which
mine this seam. .\s an average, perhaps, the
486
THE BLACK DIAMOND
[December 18
operators who mine this seam are of the high¬
est standing in America.
The Freeport Coeils.
In virtually the same district are found an¬
other coal known geologically as the upper
and lower Freeport. It runs between sixty-
five and sixty-eight per cent in fixed carbon;
between twenty-six and twenty-eight in vola¬
tile matter; less than nine per cent in ash, and
less than .7 per cent in sulphur. In some of
the foreign markets, particularly in France
and Spain, a coal which is under twenty per
cent in volatile matter is considered available
for steam making. As is indicated, this coal
is on the line between a true steam coal and
what the European considers a true gas coal.
It has very peculiar characteristics which
make it equally available for steam and gas
and also for coking purposes.
This product is mined by some very sub¬
stantial coal houses in America and has.
among others, advantage of transportation
over the Pennsylvania Railroad.
The Miller Vein Coal.
In the central portion of Pennsylvania is
found what is known as the B or Miller vein
of coal. This product is sturdier than is Poca¬
hontas, but it is often sold and used inter¬
changeably with that coal. By sturdier is
meant that it resists rough handling very
much better and hence does not break up so
easily. There is in its preparation a much
larger percentage of lump and a much smaller
percentage of fine coal.
A fair analysis of this product shows that,
in the run of mine coal, it has fixed carbon of
73.04; volatile matter, 16.82; moisture, 3.51;
ash, 6.63; sulphur, one; B. t. u., 14,279. This
analysis was incidentally made by the United
States Government’s Bureau of Mines and is
considered official.
These seven coals do not embrace all of the
low volatile coals of America, by any means.
We do not pretend here to give a complete list
of those fuels which are supposed to meet
those European requirements which call for
a fuel running less than thirty per cent in
volatile matter. They do indicate, however,
tons. Considering the possible productive ca¬
pacity of all the mines producing these seven
low volatile coals, it is safe to say that Amer¬
ica could, without straining, export, in the
next few years, a total of twenty-five million
tons of a low volatile coal per year. Candidly,
tills is far in excess of any expectations that
we have in the export market. This state¬
ment, however, shows by what a margin of
safety we can solicit foreign business and as¬
sure delivery.
American Gas Coals.
Aside from the low volatile coals, the for¬
eign buyer is going to want a certain percent¬
age of high volatile coals for gas and coke
making.
In that zone, the offerings of American coal
are almost unlimited, both as to variety and
quantity. In a word, we can give anyone any¬
thing that he is likely to want and in any
quantity. It is not, in a word, stretching the
that we have quite an abundance of low vola¬
tile steam coal which can meet the exacting
demands of France and Spain and the equally
exacting demands of coal users in other parts
of the world.
We can ship into export of “smokeless” coal
alone close to eight million or ten million
truth to say that America, in high volatile
coals, could export — if transportation were
available — seventy-five million tons per year
and give practically fifty different degrees of
quality.
A detailed statement of the characteristics
of some of the leading seams of coal will here
be made.
One of the leading gas coals of America is
that produced from the seam around Fair¬
mont, West Virginia. It is produced from a
vein which averages seven feet or more in
thickness. It is moved to tidewater ports prin¬
cipally by the Baltimore & Ohio Railroad.
This line, for the movement of coal in that
direction, is peculiarly -well equipped not only
in railroad cars and engines, but in the docks
over which the coal is transferred to ships.
Fairmont coal has been a standard gas coal
of America for something like fifty years.
The particular point in its favor is that it
contains, on the average, ninety-three and
one-half per cent of combustible matter. This
coal runs upward of thirty per cent in volatile
matter; less than one per cent in sulphur; and
is very low in ash and moisture. These facts
are indicated by the statement that the coal
contains ninety-three and one-half per cent of
combustible matter.
This coal is produced, mainly, by America’s
biggest bituminous coal company. This con¬
cern has mining operations in four fields and
selling agencies in all parts of America and
foreign agencies in London, in the Mediter¬
ranean country and is establishing itself in
South America.
Westmoreland Gas Coal.
Another excellent gas coal is that which is
produced from the Pittsburgh bed, mostly in
Westmoreland county, in the western part of
Pennsylvania. This coal is found further in
the interior than Fairmont and, consequently,
has a longer transportation route to tide¬
water. It has, however, favorable rates to the
Atlantic ports and the movement is quite
heavy. This coal runs from thirty-two to
thirty-five per cent in volatile matter; ranges
around fifty-six to fifty-seven per cent in fixed
carbon and has a B. t. u. content ranging a
little above 14,000. It is from this vein of coal
that the famous Connellsville coke is made,
that being the standard of excellence through¬
out the United States. Every American
knows that “the Pittsburgh gas coal,” as it is
called, is the standard fuel for gas making all
through the central part of the United States.
It is, indeed, the standard by which the qual¬
ity of all gas coals is gauged.
Many Gas Coals.
We get into an almost unending succession
of high volatile, or gas coals, the minute we
cross over the line from Pennsylvania into
the western part of West Virginia and into
the northeastern part of Kentucky. Indeed,
one can scratch the surface of western West
Virginia almost anywhere and get a gas coal.
The best known seam is that which is called
the Number Two gas seam. It is mined prin¬
cipally in the northwestern part of the state
or close to the Ohio river. However, the same
vein when worked on the Kanawha river.
Cabin creek. Island creek and the Guyandotte
river, yield a high grade gas coal.
Over the line into eastern Kentucky — the
latter field is really a continuation of the for¬
mer — is found the Elkhorn vein of coal, which
is now declared to be of equal quality with the
gas coal from the Connellsville district.
Further east and south there is another very
valuable deposit of medium high volatile coal.
This is produced in what is known as the
Clinch valley of southwestern Virginia. This
coal ranges between thirty and thirty-three
per cent in volatile matter and runs close to
sixty per cent in fixed carbon. It is conse¬
quently very low in ash and other impurities
and is excellent for gas, coke and steam mak¬
ing.
This coal reaches tidewater, at Charleston,
South Carolina, over the Carolina, Clinchfield
& Ohio Railroad, which was built especially
to transport this coal to the coast.
The seam names in Virginia, West Virginia
and eastern Kentucky are really too numerous
to haye any significance. As a matter of fact,
there is something like fourteen separate
veins, each one of which produces, in certain
localities, an excellent variety of gaS coal.
That territory is practically new and, in
West Virginia especially, big and little com¬
panies are operating side by side, embracing
all degrees of financial responsibility.
Our Fuel Offering.
Enough, perhaps, has been said about the
quality of coal to indicate to the careful buyer
abroad that we can satisfy pretty nearly any
demand which he is likely to make. That is,
in steam coals we can give a low volatile prod¬
uct which is friable and a low volatile product
which is reasonably sturdy, but nothing so
hard as a few of the best English coals.
In medium volatile coals we can supply any
quantity of coal comparable in quality, etc., to
anything produced abroad.
In the matter of gas and coking coals it is
probably true that our assortment has no
equal.
As indicated, our productive capacity is so
large that taking all of them together, we
could very easily export much in excess of
(Concluded on page 509.)
The map herewith is a roug'h outime of the eastern coal measures of the United States, whose product
is considered available for export. It will be noticed that there is left out of this map the coal
deposits of Ohio, Indiana, Illinois, and all states to the west. Those coals may one of these days
move down the Ohio and Mississippi rivers to the Gulf and be exported therefrom, but at present
exports will be from the eastern field. The numbers on the chart sig'nify as follows: One, is the
measure containing the seven veins which produce the low volatile coal. Two is the area in which
is included the fairmont and the Pittsburgh gas coal. Three is the section which includes the gas
coals of West Virginia and northeastern Kentucky. Pour is the territory which contains the coal
from southern Virginia, or that in the Clinch Valley. Pive is the district which produces the gas
and coking coal from the Birmingham district in Alabama. The arrows point to the dock on the
coast through which the coal is exported.
No. 25]
THE BLACK DIAMOND
487
America’s Growth of Exports Measured by Figures.
What has the United States done in the last
year by way of increasing its exports of bitumin¬
ous coal over the Atlantic seaboard? What head¬
way have American shippers made in securing a
foothold in the foreign markets, that prior to
the war had secured practically all of their coal
from England?
For the years 1913 and 1914, bituminous ex¬
ports through the principal American seaports on
the Atlantic, were approximately 4,200,800 tons
per year. For the fiscal year ending June 30,
1915, our exports over the seaboard reached
5,073,927 tons.
Prior to September, 1914, there had been only
one month where sea-borne exports had exceeded
500,000 tons; this exception was in April, 1912,
when our shipments made a very heavy increase
due to the great' mine strike in England. Im¬
mediately following the settlement of the strike,
which lasted only one month, our sea-borne ex¬
port trade became normal again, which meant an
average exportation of around 333,000 tons per
month.
It was not until the present European war
started that our exports began materially to in¬
crease. As will be noted from the table of
exports on this page, measuring our business for
the first sixteen months of the war, our exports
in August, 1914, reached 402,636 tons. In Sep¬
tember following, they reached 619,408 tons. Then
the shortage of shipping began to make itself felt
and shipments were very light for about six
months. It was along in April of this year when
ships became more plentiful, and this change in
the vessel situation is reflected in exports of 697,-
739 tons in April as compared with 337,575 tons
in March. May showed a still further improve¬
ment.
In June, our exports exceeded 1,000,000 tons
over the Atlantic seaboard, for the first time in
our history. July and August showed exports
around the million mark.
In September, vessels became scarce again, so
that exports have showed a gradual decline each
month since.
As will be noted from a table showing exports
by countries over a period of years, Canada has
always been a large importer of bituminous from
the United States. For about five or six years
our bituminous exports to Canada have aver¬
aged well around 10,000,000 tons per year. The
past year they shrank due to the business de¬
pression in Canada brought about by the war.
That American coals are now firmly planted
in numerous foreign markets, seems pretty well
assured, if one will study the several tables of
figures accompanying this article.
What may be looked upon as permanent mar¬
kets for American coals in the future are the
South American countries and several of the
Mediterranean countries.
Prior to the war, we had already captured the
coal business in the West Indies. Next to
Canada, Cuba was one of our largest customers,
taking well over a million tons each year.
Italy, for the years ending June 30, 1911, 1912
and 1913, took 194,015, 276,460 and 332,264 tons
respectively. For the year ending June 30, 1915,
Italy imported 1, 628,279 tons from America. It
is interesting to note that in July of this year
our exports to Italy alone were 464,459 tons, or
more than for the entire year of 1913 and more
than the exports of 1911 and 1912 combined.
For the first nine months of this year (1915)
our exports to Italy reached 2,348,870 tons.
Let us see how our exports to South America
have grown.
In the years ending June 30, in 1912, 1913, 1914
and 1915, our exports to three of the princiiial of
these countries were as follows :
1st 9 Mo.s.
rounti-y— 1912. 1913. 1911. 1915. 1915.
Argentine ...159,793 38,834 139,409 563,889 719,019
ISrazil . 307,135 234,368 239,083 .527,264 544,194
Uruguay .... 40,265 4,400 64,453 103,639 135,065
504,182 277,602 442,9.43 1,194,792 1,398,278
Our exports to Argentine and Brazil in the
year ending June 30, 1912, amounted to only
99,224 tons. It should be explained that our
radical increase in 1912 wa's due to the English
mine strike, which shut off En.glish shipments
for about a month.
Exports to Chile for the fiscal years ending
June 30 of 1911, 1912, 1913, 1914 and 1915, were
26,688. 29,751, 112,067, 83,876 and 57,781 tons, re¬
spectively. The United States has not benefited
by the war in increasing its coal exports to Chile
for the reason that transportation has not been
available. It is expected that as soon as the
Due to Vigorous Campaigning and the
Building of Ships, We Have Won a
Prominent Place in Many Important
Coal Markets.
Panama Canal is permanently opened, and as
soon as big ore steamers are run between the
States and the Chilean ore ports, a great quantity
of coal will be taken on the downward trip of
the ore steamers. To make this proposition
attractive to the ore carriers, however, some im¬
provements must be made in the way of provid¬
ing rapid unloading equipment at the Chilean
ports. In short, it would hardly pay the type of
vessel proposed for this service, about 12,000 tons
cargo capacity, to carry down a cargo of coal
and discharge at the rate of 500 tons a day. It
would be more economical to go down in ballast.
It was not until the first of 1915 that the
Department of Commerce began showing our ex¬
ports to Italy separately in the monthly reports.
Only detailed figures were given out once a year,
so that a person who wanted to keep very close
tab on what we were doing had to compile his
own figures.
Our total exports to Italy in the calendar year
1914 were 952,714 tons. For the year ending
June 30, 1915, they were 1,628,279 tons. As has
been noted, our exports to Italy for the first nine
months of 1915 were 2,348,870 tons. This would
indicate a permanent trade here.
Exports to countries across the Atlantic in
1914 reached 1,463,135 tons, distributed as fol¬
lows :
Italy . 952,714
.8icily . 15,433
France . 46,594
Egypt . 94,979
(Ireece . 72,853
Spain . 52,785
Algiers . 20,921
Dakai, F. W. A . 78,117
Norway . 25,313
Sweden . 20,242
Austria . 20,099
Portugal^ . 12,091
(Irand Canaries . 13,100
Gibraltar . 26,810
Congo . 3,742
India . 3,010
Liberia . 3,009
German S. A . 1,499
The following tables show exports of bitumin¬
ous coals from the United States for five years,
ending June 30, respectively :
Exported to —
Europe;
Austria-Hungary .
Azores and Madeira Islands .
Belgium .
France .
Germany .
Gibraltar .
Greece . .
1,463,135
Since the war started, one very favorable
development that guarantees permanency to our
export coal trade, was the move taken by Ameri¬
cans to build new steamers and to acquire as
much of tonnage already in com.mission by reg¬
istry under the American flag. The tonnage added
to American registry by conversion of vessels
formerly flying foreign flags, approximates 500,-
000 tons. At present, at our domestic shipyards,
500,000 tons of freight vessels are under con¬
struction. A goodly number of these will be put
in the coal trade.
A considerable number of steamers have been
(Concluded on page 509.)
etc.
Malta, Gozzo.
Netherlands .
Norway .
Portugal .
Russia in Europe .
Spain .
Sweden .
United Kingdom — England.
North America:
Bermuda .
British Honduras .
Central American States:
Costa Rica .
Guatemala .
Honduras .
Nicaragua .
Panama .
■Salvador .
Greenland .
Miquelon. Langley, etc .
Newfoundland and Labrador .
West Indies — British:
Barbados .
Jamaica .
Trin. and Tobago .
Other British .
Cuba .
Danish . 104,396
Dutch .
French .
Haiti .
Santo Domingo .
South America:
Argentina .
Brazil .
Chile .
Bolivia .
Colombia .
Ecuador .
British Guiana .
Dutch Guiana .
French Guiana .
Peru .
Uruguay .
Venezuela .
Asia:
British India .
Dutch East Indies .
Japan . .
Russia in Asia .
Oceania:
Philippine Islands .
Africa;
Belgian Congo .
British West Africa . .
British South Africa .
Canary Islands .
French Africa .
German Africa .
Portuguese Africa .
Turkey in Africa, Egypt .
Liberia .
Morocco .
I'ripoli .
Total .
1911.
17,161
1912.
26,226
16,433
1913.
64,754
1914.
39,952
5
22
37,864
110
43,222
319
5,308
16,140
6,730
5;320
47,322
5,123
11,280
194,015
37(),467
r),G2S
332,264
776,422
95
4,000
245
202
50
4,860
16,027
50,260
42,875
11,280
20
13,566
1,743
11,472,397
14,559
590
8,627,968
10,099
1,343
10,671,982
8,808
826
11,981,443
47,434
14,938
4,576
2,047
506,979
16
37,552
16,205
4,688
3,020
511,802
210
554
39,526
17,646
6,846
1,042
483,884
45
45,386
15,858
13,759
1,617
362,427
619,447
50
344,712
443,884
296,392
5,498
9,783
26,683
20,746
55,430
44,721
66,704
106,590
945,394
104,396
31,980
69,914
4,480
14,594
79,455
70,953
121,482
150,072
1,121,580
140,479
35,028
72,062
4,065
8,839
70,739
56,132
85,866
124,819
1,273,945
105,093
62,305
70,815
8,488
8,366
60,608
70,765
92,925
112,488
1,129,594
90,105
43,557
79,404
2,228
11,895
34,929
64,295
26,688
156,792
307,125
29,751
38,834
234,368
112,067
139,409
239,082
83,876
1,920
-21,664
9,750
2,574
1,292
19,446
374
3,427
17,652
15,687
6,452
299
39
40.265
2,671
3,958
18,305
11,200
5,485
191
9,209
4,400
3,351
3,584
22,571
16,054
5,325
280
96
64,452
5,733
4,750
6,605
1915.
48,213
3,000
55,770
7,520
V9,5i2
102,498
1,493
14,802
121,275
53,353
' 6.261
l'32,548
96,627
45,987
142,144
3,712
73,785
.11,839,099
5,100
14,709,847 10,083,101 15,704,900
RECAPITULATION.,
Europe . 254,133 4 404,905 4 75,713 923,261
North America . 11,290,300 13,415,965 14,877,291 13,937,550
South America . 182,932 .580,160 441,368 578,462
Asia . 4.751 6,612 . .
Oceania . 48,213 5 53,3.53 46,052
Africa . 58,770 302,200 235,376 219.641
5,728
'50,626
3'2’,578
101,783
1,628,279
10,868
64,247
17,637
1,200
100,547
46,415
2.261
20,145
536
8,425,103
29,141
15,643
18,577
1,271
343,372
391,611
' '4',6ir>
66,350
53,091
83,315
61,156
1,065,206
37.780
54,716
71,592
1,397
12.344
563,889
527,264
57.781
1,007
2,601
25,400
2,712
' ’4,436
103,639
8,553
3,103
,8,014
5,559
30,837
2.742
10,950
3.742
20,552
47,389
’ '5,418
139,600
6,045
2,348
14,412,995
2,061,280
10,756,199
1,297,29]
16,586
36,847
244,792
[December 18
4S8 _ ^ ^ _ THE BLACK DIAMOND.
Spanish N eeds and America’s Plans to Supply Them.
The figures which measure the coal imports of
Spain arc not convincing. First, authorities dif¬
fer widely as to their volume. Second, Spain is
on the eve of a .great industrial change which will
make, in the near future, any figures of little
value.
Perhaps, as a conservative statement, it may
be said that Spain imports 3,000,000 tons of coal
per year. This is under some estimates by a
million or so tons per year. It exceeds some
other estimates to the extent of a little better
than a million tons per year. To assume, there¬
fore, that imports will amount this year to 3,000,-
000 tons of coal will about strike the average and
will be conservative. For the purpose of this
article — which does not concern itself much with
figures anyway — we will use that as the basis of
calculation. We do so knowing that, in the near
future, the situation is almost sure to change
radically because Spain itself is going to change.
Until this year, Spain got practically all of
her coal from England. Until this year hardly a
pound of coal was sold to Spain by American
producers. This situation is also goin.g to change,
first, for the reason that England cannot supply
that market and, second, for the reason that the
commercial relations between the United States
and Spain are undergoing a rapid evolution. In¬
deed, it would not be surprising if, in the near
future, these two countries were as close to¬
gether commercially as they have been far apart
geographically, politically and in a business sense
for the last fifteen years.
The Influence of the King.
The reason why Spain is to undergo a great
industrial chan.ge is the same as the reason why
new relations are sure between that country and
America. Tliat reason is not far to seek. The
strong personality of King Alfonso is daily e.x-
pressing itself more strongly on Spanish diplo¬
macy and on Spanish finance and industry alike.
Indeed, his is the dominant force in the nation.
Alfonso has seen the drift of things. He knows
that a nation is only as powerful as its industry.
He knows that industry gives strength only on
interchange with other countries. He knows that
the interchange is most secure when bound by
interlocking investments. And, he is planning
alon.g the line of his knowledge. Thus, today,
when anyone tries to forecast Spain’s future, he
must do so in terms of the personality of the
Spanish king. This fact makes Alfonso, from the
American point of view, one of the most inter¬
esting figures in Europe.
His personality as well as his grasp of the
international business situation was brought out
in a recent interview which he granted an Ameri¬
can representatitve. At that time, England had
just shut off her exports of coal to all countries
except her immediate possessions and her allies.
Spain, being neither, was likely to lose a vital
part of her coal supply. The question
was : From whence was she to get
the needed coal to carry on industry.
When matters W'ere in that acute stage
the American representative went to
Madrid to present to the Crown, at
the latter’s suggestion, a definite plan
by which America might supply the
deficiency.
At that time, it was called to His
Majesty’s attention that a transport
tax of forty cents a ton and an im¬
port tax of seventy cents a ton stood
against a low price of American coal
at Barcelona or at any other Spanish
port. That is, a combination of the
two taxes would add $1.10 to the mine
price of the coal plus the freight rate
to Barcelona. That, it was shown,
would make the price of American
coal so high that importation could at
best be temporary and hence unsatis¬
factory to both parties.
At the same time, it was shown that
whereas American coal must pay an
import tax of seventy cents, English
coal was having to pay only ten cents.
This made a de facto but, perhaps, an
unintentional discrimination in favor
of England of sixty cents a ton. The
net result was practically to dictate
that Spain must get its coal now and
in future from English mines. It was
called to His Majesty’s attention that
if a revision in this tax would be
made, America could, with satisfac¬
tion, supply Spain her immediate
How and Why the Transport Duty Was
Revoked — Our Chance to Sell 3,000,000
Tons a Year and What We Will Do to
Establish Ourselves.
needs and could look to the future with some en¬
couragement.
At that time the Spanish parliament was about
to assemble. There was, accordin.gly, presented
to it, by the court, a bill which allowed the Crown
the privilege of suspending all import and trans¬
port taxes if, in his opinion, the good of the
commerce of the country demanded it. Parlia¬
ment instantly passed the bill. Almost imme¬
diately thereafter Alfonso issued an order sus¬
pending both the import and the transport tax
on American coal.
The matter rests there now. This seems to
indicate that the suspension of the tax is only
a temporary measure. It is realized that His
Majesty can at any time restore the tax and thus
return the trade to England, where it has been,
instead of to America, where it promises soon
to flow.
However, a situation is arising which seems to
assure the permanence of our relations. That is,
the whole commercial exchange between Spain
and America is likely to be quickened under the
advice and leadership of the King himself. This
is indicated by certain things said in the inter¬
view, previously referred to, between the Ameri¬
can representative and the Spanish sovereign.
At that time, the American inquired what Span¬
ish ports could do in the way of unloading boats.
Alfonso replied that they could unload si.K hun¬
dred tons a day. Then he inquired what
American ports could do. He was told that
single docks in America could easily load or un¬
load 8,000 tons a day. His Majesty was aston¬
ished at these figures and said that Spain must
have some dock machinery of that kind.
This directed the interview to a discussion of
the basic difference between American and Span¬
ish industrial methods. Disclosures by both sides
made it apparent that the Spanish people need
many things which America has. But, it was
expressly shown by His Majesty, that Spain
needs money with which to develop its resources.
This it has been trying to get by import duties.
If it cancels these the nation must borrow. Eor
e.xample, tbe country is very much in need of
additional railroad facilities. His Majesty volun¬
teered the suggestion that if American money
could be induced to build those tramways, as
they are called, the Crown would guarantee in¬
terest on the investment and allow the financiers
to make as much money as they could out of
operation.
He went further and called attention to the
fact that Spain has in its southern district con¬
siderable deposits of high grade iron ore which
can be developed and can be made to support a
considerable steel industry if capital can be in¬
terested. The Crown showed a disposition volun¬
tarily to guarantee interest on that investment
also, and to leave it to the shrewdness of the
investors to increase. the profit by developing the
industry. Later, His Majesty showed also the
need for docks in Spain. In this connection he
made the same broad and encouraging proposal.
In a word, the Spanish Crown is now com¬
mitted to an elaborate and expanding industrial
program which has for its basis the guaranteeing
of interest on investment to the end that foreign
money — American money — may be induced to
open the country as it is capable of growing.
This opens quite a broad field for American
enterprise. The result must be, if this is fol¬
lowed to anything like a logical conclusion, the
establishment of America in Spain on about the
same basis as England has established herself in
her principal foreign markets. That is to say,
we will be privileged to put money into Spanish
industries and get in return something approach¬
ing a mortgage on a big percentage of Spain’s
future foreign business. This includes the owner¬
ship of docks and through it control, in a sense,
of the imports of coal into Spain. Those im¬
ports must be large enough not only to support
the present business, but the much larger business
which is sure to be done if the Spanish Crown
carries out its program of increasing the in¬
vestments in Spanish industry and hence Spain’s
business by guaranteeing the interest thereon.
Getting Goods Carried.
During the interview in question, His Majesty
exhibited a lively interest in transportation mat¬
ters in so far as they concern the movement of
commodities between Spain and America. He
inquired of the American representative what the
United States was doing toward getting a mer¬
chant marine and hence a supply of ships to
promote our commerce. He was told the truth
about the matter, wihch is that the upbuildin.g of
our merchant marine lias become involved in our
politics. Thus, while we may expect, in course
of time, to set about building a fleet, it need not
be expected or supposed that w'e were going to
make anything like characteristic rapid progress
in that direction. On the contrary, it is reason¬
able to suppose that we will get a representative
fleet only after a long delay. It was shown that
when obtained it would not be commensurate in
all probability with the size of our foreign busi¬
ness. After hearing this comment. His Majesty
remarked, in substance ;
“There are two w'ays to get a fleet. One is
for the country which has something to sell to
provide the ships to carry it. The other way is
for the country which wants to buy somethin.g
to provide the ships to go after what
it wants. Spain is going to want a
great many things if the bigger indus¬
trial program which we have in mind
is carried out. It would not be a part
of wisdom for the Spanish govern¬
ment to depend solely on the good in¬
tentions of the other countries to sup¬
ply ships with which to carry the com
merce to our shores. The safest
course for us is to build ships of our
own to go out after what we want and
what we expect to use.
"I have thought that the best course
for us to follow would be to put on
a few steamers — I cannot say, yet,
just how many — to engage regularly in
the trade between Barcelona and New
York. If there is to be an exchange
of business between these two coun¬
tries and particularly if investments
are made here by Americans, we
should show the Spanish good faith
by putting on these ships.”
What America Will Do.
It would .seem there is now a mar¬
ket in Spain for 3,000,000 tons of
American coal and a prospective mar¬
ket for much more. It is clearly in¬
dicated that if we want to get and
hold that market we must not only
sell coal, but invest the money in
Spain. If that is done, the Spanish
government will secure our invest¬
ments by guaranteeing the_ interests
and will quicken trade by improving
No. 251
THE BLACK DIAMOND
489
transportation between the two countries. Tliis
is attractive to America.
It remains to be seen what America is ready
to do to hold up her end. The attention of the
Spanish people is here called to an important
fact or two in connection with the American
export pro.gram. When the war in Europe had
gone to some lengths, a suggestion was made
to the American bankers that they lend some¬
thing like $500,000,000 to England and France.
The loan of that amount is now a matter of
history.
While the bankers were discussing that inter¬
esting proposal, an American coal man advised
the bankers that such a loan would defeat the
purpose of our new foreign commercial policy
unless loans were made also to the countries
which are customers of France and England. It
was sug.gested therefore that we set aside another
half-billion to loan in Spain, in Italy, in Greece,
in the Nile country and in Central and South
America. It did not take the American bankers
long to act on this suggestion. They saw that a
loan to England and France was nothing more
than a matter of financing the inaking and sale
of war munitions during the period of the war.
However, a loan of an equal sum to the cus¬
tomers of England and France would transform
our temporary business with those countries into
a permanency.
Therefore there was organized in America a
great corporation with an initial capital of fifty
million dollars. The purpose of this organization,
which is financed by some of the wealthiest men
and institutions in America, and which is headed
by Charles A. Stone at Boston, is to undertake
the financing of businesses in other countries.
By this concern financial aid will be given to com¬
panies which want to expand their business by
using American products or which have become
financially embarrassed as the result of the war
and need rehabilitation. The initial capital there¬
fore of fifty million dollars is merely a nucleus.
W’henever a foreign prospect appears attractive,
money will be forthcoming to develop it. That
is, if the iron ore mines in the southern part of
Spain need to be developed and if American
money can do it, this organization will supply
that money. If the same is true of the building
of tramways or docks in Spain, the money will
be forthcoming through this organization. In a
word, we are starting out on a program of an
expansion of American finance into the foreign
field. As Mr. Stone expressed it, we do not
want or intend to supplant any competitor. We
do intend to put America on the map. This gives
assurance to King Alfonso and the Spanish peo¬
ple that we stand ready to make operative the
friendly suggestion which he put forth.
American Coal in Spain.
The question remains whether the coal that we
have to offer will meet the Spanish need and
whether the people of that country will lie dis¬
posed to buy what we have to sell. In this con¬
nection the statement made about our coal in
France applies with equal force to Spain. It has
liecn depending i)rimarily on England for its coal
supply. Recently it has not been getting from
that source either the quantity that it needs or
the quality to which it has been accustomed.
Spain cannot turn to France for coal because the
French mines are, to the extent of fifty per cent
at least, under German control. It cannot turn
to Belgium because all the Belgian mines are in
the hands of the enemy. It cannot turn to Ger¬
many because the German mines are not, now,
shipping into export. The only place it can get
coal is the United States or Australia. Of course,
the United States affords t he most available
market.
However, the Spanish coal user has been accus¬
tomed to a high grade of fuel. He has con¬
sidered, the same as has the Frenchman, that
anything under twenty-five per cent in volatile
matter is a steam coal. Anything over twenty-
five. or especially over thirty per cent, is a gas
coal. For steam purposes he will want the Ameri¬
can low volatile coals coming from anyone of a
number of eastern seams. For gas production he
will probably want some of the higher volatile
coals. If the Spanish metallurgical industry-
takes on any such pretentious growth as the state¬
ment of the Spanish monarch wishes, Spain will
also want some of our coking coals. Of all these
coals we have, virtually, an unlimited supply.
The attitude of the Spanish government to¬
wards American coal is indicated by an official
act of some months standing. Wdien the Ameri¬
can representative had his interview with the
Crown several pertinent and pointed questions
were asked about the amount of coal which we
had available for export, the character of the
product, how it is prepared, and the financial
responsibility of the concerns which have it for
sale. The American representative presented
quite an elaborate memorial on that subject
which, in fact, was prepared at the suggestion of
His Majesty. Accompanying this was a copy of
the 1914 Export Number of The Black Diamond.
Almost immediately thereafter, the official gazette
of the Spanish army and navy compiled a list of
American coal companies which were willing to
supply Spain with coal. A statement was printed
enumerating the kinds of coal they have to offer
and the quantities which they can be called upon
to export. This amounted to practically a free
advertisement for the American coals in the
Army and Navy Gazette at Madrid. That state
ment has been allowed to stand from the date of
its first issue linti the present. Tlie Spanish peo¬
ple, therefore, are showing a keen interest in our
coal offerings and America is reciprocating, first,
by sending a .government official to the court of
Aladrid; second, by establishing coal selling
agencies in Spain and, third, by the intention of
our financiers to loan money in that country
where it is reasonable to suppose such loans will
add some permanency to our commercial rela¬
tions.
International Corporation.
American coal men who are interested in
exporting see great possibilities for American
coals in foreign countries, due to the recent
incorporation of the $50,000,000 American In¬
ternational Corporation, which has a directo¬
rate made up of some of the strongest bank¬
ers and industrial leaders in the United States.
The corporation has a very broad charterj
which practically permits it every activity in
foreign fields.
As much as $500,000,000 debentures, cover¬
ing acquired properties, may be distributed by
the corporation among investors. Ultimately
the $50,000,000 capital may be increased and
an unlimited amount of foreign investments
placed in this country.
In addition to financing and controlling for¬
eign properties, the corporation will seek to
foster the sale of American-made materials,
commodities, etc., in many foreign countries!
Twenty-four directors have been selected,
and to name them is but to name some of
the principal bankers and industrial leaders
in America.
Frank_ A. Vanderlip, president of the Na¬
tional City Bank of New York, one of Amer¬
ica’s strongest banking houses, is the orig¬
inator of the scheme of the American Inter¬
national Corporation, and he has been named
as chairman of the board.
Charles A. Stone of Stone & Webster Com¬
pany of Boston was appointed president, and
R. P. Tinsley, formerly treasurer of the Stand¬
ard Oil Company of New York, is secretary
and treasurer. Willard D. Straight, formerly
with J. P. Morgan & Company, is a vice-presi¬
dent. James J. Hill, one of America’s fore¬
most railroad builders, is on the directorate,
as are Charles A. Coffin of the General Elec¬
tric Company, J. Ogden Armour of the Ar¬
mour Packing Company, William E. Corey of
Midvale Steel & Ordnance Company, Robert
Dollar and Jos. P. Grace, the well known
steamship owners, Otto H. Kuhn of Kuhn,
Loeb & Company, Robert S. Lovett of the
Union Pacific Railroad, Ambrose Monell of
International Nickel, Henry S.. Pritchett of
Carnegie Foundation, Percy A. Rockefeller of
Standard Oil, John D. Ryan of Anaconda Cop¬
per Company, Charles A. Sabin of Guarantee
Trust Company, William L. Saunders of In-
gersoll-Rand Company, James A. Stillman of
the National City Bank, Guy E. Tripp of
Westinghouse Electric, Theo. AI. Vail of
American Telephone & Telegraph, Edwin S.
Webster of Stone & Webster, Albert H. Wig-
gin of Chase National Bank and Beekman
Winthrop of Robert Winthrop & Company.
Alost of these people have international repu¬
tations.
In explanation of how the corporation will
go about distriluiting foreign securities. Air.
Vanderlip said:
"The great drawback in extending direct
foreign trade relations is the difficulty of sup¬
porting our efforts with adequate financial
means. This the new company expects to do
on a large scale. Another difficulty is in en¬
listing the support and cooperation of Ameri¬
can investors in foreign enterprises. It is
now hoped to overcome this prejudice. The
new corporation will, among other things,
finance either old or new enterprises abroad.
The corporation will in some instances form
separate companies and offer to American in¬
vestors its own debentures, secured by bonds
or stocks of tbe foreign properties. Or the
corporation may sell the securities of the for¬
eign companies directly here, when the securi¬
ties are well known.”
To this statement President Stone added:
“It is organized for the purpose of doing an
international business and establishing trade
relations with different countries, which will
help make the world markets for our products.
It will finance and promote the developments
in foreign countries by .American engineers
and manufacturers of great public and private
undertakings. Also it will assist in the re¬
habilitation of industries in foreign countries
and will undertake sucb domestic business as
seems advantageous.”
Coal men believe that the appointment of
Charles A. Stone as president of this immense
financial enterprise is of more than passing
importance to the export coal trade.
The Port of Barcelona, Spain, Where American Coal Is Being Shipped.
490
THE BLACK DIAMOND
[December 18
Progress Toward an Export Coal Organization.
A year ago, America was a tyro in the niatter
of exporting coal. It had practically no business.
It had, compared with the extent of the industry,
practically no export coal selling organization.
It had virtually no ships. Foreign cxchan.gc m
every country was decidedly against it. It had,
virtually, no foreign financial policy, either a
concerns the government itself or the banks, m
a large sense. It had no means of getting credit
information outside the narrow precincts of its
own home market. It was, in a word, a provincial
country, so far as coal selling and distribution
was concerned
In fact, about the only things winch America
did have was an abundant supply of every con¬
ceivable kind and size of coal, supported by such
a tremendous ambition to sell coal to all the rest
of the world it amounted to a passion.
The foreigner, getting his first glimpse of us
through the glass of his own immediate needs,
looked upon America in a calculating way. He
said: , .. .
“Here is an interesting market place if it can
ever be equipped to do business. One of these
days it will be an interesting and attractive place
to do business. But it is not, as yet. Just when
it will be no one can tell. A miracle may be per¬
formed and America may put herself in position
to do business before this war ends. But if it
does, it will be a miracle. And, in these days,
such things do not happen.”
The world’s appraisement of America was
rather severe, but there is no escaping the fact
that it was nearly correct. About all we had to
offer was our own hope that we could learn to
trade and our elaborate natural resources.
Measuring Our Growth.
Seeing with what little promise we entered the
lug field, the foreign coal buyer may be inter¬
ested to know what be have done, meanwhile.
We have not exactly performed a miracle in
those twelve months, but we have come near
enough to it for all practical purposes. That is
to say, we have sold abroad more than double
the amount of coal previously sold; we have
learned to finance those sales and even the ex¬
tension of credit; we have begun to get a foreign
credit system that is practical ; and we have
worked exchange around until it is in our favor
and until we can do business without handicaps.
To enable our friends abroad to understand
precisely how this astounding change was made,
it is necessary to show in some detail what was
the situation at this time a year ago and then to
show how, gradually, we worked from one thin.g
we had to the other thing we got.
A year ago the American coal producer, with
a notable exception here and there, was forced
to take this stand:
“We have the coal for sale and we are anxious
to sell it. But, if you want it. you must pay
cash f. o. b. New York or some other seaport.”
The attitude implied by that remark was brutal
and not businesslike. It seemed to express in
one breath an eagerness to sell and in the next a
determination to dictate terms, which questioned
the other man’s standing. Those terms were not
intended, studiously, to insult the prospective
liuyer but they imparted that notion to his mind
just the same. They did not openly challenge
the credit standing of the prospective customer,
yet they had that effect. They violated the golden
rule of trade, which is : Be particular to sell only
to those who are good risks but do not let them
know that you are inquiring.
Those terms were austere and undiplomatic,
liUt really there was nothin,g else for America,
the exporting novice, to do. We had no knowl¬
edge of foreign coal credits. We dared not
assume that because so many foreign credit risks
are first class all of them must be good. To do
any such thing would have involved us in such
a succession of losses we would not have re¬
covered from our first attempt at exporting with¬
in a period of twenty-five years. To have endured
such a loss would have been doubly disastrous
because it would have delayed indefinitely our
orderly occupation of the foreign field, and it
would have prevented us from making those
liberal terms which we are beginning to suggest.
To avoid doing anything so disastrous, America
had to take the other position, which was : “Since
we do not know the good from the bad credits
yet, we must play safe and say that all are bad.”
But it wasn’t a permanent program of ours and
was never intended to be such. Rather it was
merely our first effort at getting a real program.
It was a negative proposal which held a situation
In Twelve Months We Have the Nucleus
of a Credit Bureau, Simplified Exchange,
a Growing Sales Organization, and We
Will Get Ships and Docks.
in status quo until we could get a positive one.
From that crude be.ginning, we soon began to
get upon firmer ground. Some buyers from all
over the world needed coal sorely. Since the
only place to get it was in America, they came
to us and met our terms. They paid us cash for
coal f. o. b. New York or some other seaport.
That gave us our first real “line” on the depend¬
able foreign buyers. We saw the big point be¬
hind these cash orders at once, as American busi¬
ness men are likely to do. This point was that
concerns which were able to raise the cash to
pay for a cargo of coal in advance must also have
the resources which must entitle them to credit
if they wanted it.
Thus when we found some concerns that were
able to pay cash we also found by the same stroke
the keynote to our future credit system. That is,
we made the second sale to this cash customer on
limited credit. Then through our new-found
connection abroad we got into touch with other
buyers who were equally good. Through the
first introductions we .got second, and through
the second we got the third introductions. This
established an endless chain of customers and
hence gave us a growing list of accounts and an
ever widening market for our coal. It worked
out well for us. It worked out equally well for
the people at the other end of the line.
By this method we soon began to have financial
relations abroad. That is, through the sale of
coal to strong buyers, we got in touch with those
foreign banking houses who were doin.g the bank¬
ing for our new customers. Those banking
houses not only got more business to do by deal¬
ing with us, but we got through them another
excellent source of credit information. It was a
process of slow and careful expansion, still,
everything considered, it was a source of rapid
expansion too. That tells how we removed our
first handicap — the lack of credit information or
any system by which we could get credit data.
Simplifying Exchange.
The next thing we undertook was the matter
of simplifying exchange. When we started a
year ago, on a large scale to export coal, we had
practically no exchange arrangement except
through London. We had at that time to per¬
suade the buyers of our coal to use the money
of their own country to buy pounds sterliag.
Then we had to use the pounds sterling to buy
American dollars if we wished to get the cash
for our coal. It was a slow and costly process,
involving, as it did, at least two exchanges, both
of which increrased the price of what we had to
sell.
At what was, for us, an opportune time, there
came a serious break in the foreign exchange
rate. That is, pounds sterling were depreciated
in the international money market. After that
break, American dollars were considered more
stable than pounds sterling and hence were more
in demand. This turned the attention of the
bankers of the world toward American dollars.
It was the first time they had come to look upon
their evident stability with any covetous eyes.
This was a good thing for America, because it
helped aloaq immeasurably our effort to stand¬
ardize our dollars in the money markets of the
world. This served to concentrate exchange as
much on New York as on London. The concrete
result was most satisfactory to both foreign buyer
and the American seller of coal. As a net result,
we have today worked out an arrangement which
is virtually as follows:
Three of our leading coal companies — and
others are following the example — have estab¬
lished their own selling agencies abroad. These
agencies make a sale of coal to any point in
Europe or South America on terms — price, credit,
etc. — satisfactory to the buyer. When it cornes
time to pay the bill, arrangements are made_ which
will allow the buyer to pay in the coin of his own
country through his own bank at the rate of
exchan.ge then prevailing. If he thinks the rate
of exchange is favorable to him, he can take
advantage of it. If the company wants the money
at that time, it can draw on that bank and have
the money in New York the same day.
But no’ matter whether the money is trans¬
ferred to New York the same day it is paid into
the foreign bank, or whether the transfer is de¬
layed for some time, the effect of it all is to
reduce the exchange proposition to simplest pos¬
sible terms by inserting but one exchange instead
of many into the whole transaction. It makes the
doing of business extremely easy to the buyer
for all he has to concern himself about is raising
enough of the coin of his own country to meet
his obligation. This he pays into his own bank,
which is the simplest possible way for him to
do. 'I'hen the bank and the seller of the coal
undertake the small task of transferrin.g that
local currency into United States dollars and
effecting the delivery to the United States. Thus
we solved our second problem, which was to get
a .system of exchange by which foreign money
can be made to settle American coal bills.
American Selling Plans
In the year, also, we have eliminated many of
the crudities from our selling plans. We started
at practical zero but now we are approaching true
efficiency. A year ago we had nothing worth
the name of a selling organization. One of our
largest companies was selling coal abroad through
the medium of jobbing houses with local connec¬
tions. Another large company was selling coal
by a long distance arrangement which amounted
practically to negotiations between a salesman
located in New York and a buyer located at some
other point. Others were trying the doubtful
experiment of sending representatives from the
New York office on a tour of the prospective
markets. In a word, we had every shade of
selling arrangement of doubtful value and very
little real representation of any definite value.
To get from one to the other and to establish
a definite selling program was a commercial task
at which even Hercules might have hesitated.
Our only equipment with which we undertook
to sell coal abroad was a knowledge of how sales
must be made at home. We knew that the for¬
eign buyer was as human as the home buyer;
therefore, the appeal to one must be identical
with that to the other.
Starting there, we know that before we could
sell coal in Europe or South America we must
know what are the fuel preferences of those
countries and what equipment they have with
which to burn coal. That information, we knew,
was quite necessary at home ; we had every
reason to believe it was requisite abroad.
There were only two ways by which we could
get that information. We could rely upon for¬
eign jobbers for it. While we had to resort to
that plan at first — there wasn’t time to do anything
else — the American operator has had experience
with the coal jobber. He understands that such
distributors are interested primarily in the sale
for the sake of the commission. Our producers
were more interested in establishing a permanent
relationship with the consumer. This system of
distribution did not appeal to us because it did
not promise to make those adjustments of size,
preparation and shipping arrangement upon
which, alone, the permanency of our foreign
trade depends.
The far more satisfactory plan and the one
which companies adopted, was the placing of
salaried sales agents in London with branch
offices in all parts of Europe. The same thing
was done in South America. After a year of
this sort of thing, they recognize that this must
be considered as merely a preliminary step.
However, it is a start in the right direction.
These agents, before attempting any actual
sales of coal, devoted some months to getting
information. This included the quantities of coal
used by certain buyers; how deliveries should be
made; what distributing center was best; what
class of equipment the buyer had in which to
burn coal (whether mechanical stoking or hand
firing was employed) ; and, in fact, all about the
needs of the larger users of coal.
Thus our start in selling coal abroad was on
the graduated plan, which has characterized all
our initial actions. From knowing the needs of
a few big plants, we came, through them, to know
of other and smaller plants which were similarly
situated. Thus one big order led to a second
smaller order; the second smaller order, in turn,
led to a third which was still smaller; and,
thereby, we established another endless chain of
trade expansion.
The starting point of this ever-widening cam¬
paign was the establishment of our salaried sales
agents who were equipped by home experience
to get this information. No sooner were these
agencies established and the flow of coal started
No. 25]
THE BLACK DIAMOND
491
than we came automatically into possession of
additional and supplementary information of
value. We learned that many foreign buyers
have been accustomed to getting coal at regular
intervals from a nearby source of supply — gen¬
erally a dock. In a word, they have been accus¬
tomed to getting coal that is moved to those
docks by ships which travel on schedule time.
Where deliveries are to European centers, the
schedule is much faster because the distance from
the mines to the point of consumption is not
great.
Where delivery is made to Central or South
America, the distance from the base of supply
is greater, but the regularity with which the ships
sail and arrive gives the buyer a dependable
supply.
The main point of interest to us was that the
coal must move at stated intervals to the storage
dock that it may move quite as regularly to the
consumer.
The American agent was quick to appraise the
value of this arrangement because he was accus¬
tomed to something similar at home. That is,
we ship coal from our eastern mines to points in
our own northwest by the lake. This involves
a tifteen-hundred-mile haul; a need for docks;
and regular shipments therefrom. Thus we
quickly adjusted ourselves to the foreign situa¬
tion which differs only in that it requires an
ocean rather than a lake haul.
But, details and comparisons aside, the point
is that America has come to know the necessity
of docks for the transfer of coal from ships to
shore. We realize now that these docks must be
part of the equipment of our selling organization.
In other words, we might have the best possible
selling agents abroad, but unless they were sup¬
ported by docks to assure regular deliveries to
the consumers, we might as well abandon the
foreign field.
Getting Our Own Docks
There were two ways to get the docks. One
was to make arrangements with a jobber who
owned one. The other was to build our own.
We have been, for the last year, using docks
owned by other people. We have found them
slow for our purposes and not accustomed to
handling our coal. Already, therefore, a move¬
ment is under way to solidify our foreign busi¬
ness by our larger companies consolidating their
foreign selling agencies and establishing docks
equipped with American machinery and man¬
aged by salaried American men. From these
docks, which will be fed at regular intervals with
American coal, we expect, in the course of another
year, to be feeding coal ’ out regularly to the
foreign buyers.
This statement is not a promise of what
.America will do. It is merely an insight into
the trend of our discussion.
It can be seen, from what is here said, that
we have solved the third problem which was :
How were we to get a sales organization abroad?
If America, in twelve months, had done nothing
more than lay the foundation for a system that
was to yield credit information ; foreign exchange
in favor af the American dollar, and make so
much progress toward getting a selling organi¬
zation, the foreign buyer must admit that we
have performed practically a miracle.
Extending Our Activities
Our progress in the other important directions
has not been so pronounced but nevertheless we
have made progress. For example, we started
a year ago with practically no ships at all. We
did not have, when the war broke out, even a
policy touching what our ships should carry and
where they should carry it. In twelve months,
however, we have done more than broken
ground.
The accepted theory of the world, heretofore,
has been that cheap coal depended upon its being
transported in the low'er decks of general cargo
boats and hence carried practically as ballast.
This might have reduced the ocean freight rate
to some extent, but any reduction there was more
than offset by the fact of slow loading and un¬
loading at the two ends of the route. America,
which believes in doing everything by machinery
in order to save time, started on the theorv that
boats must be loaded and unloaded quickly or
coal transportation could not be cheap. Accord¬
ingly, we began to arrange for suitable docks at
both ends of the route. We had the fast loading
docks and need only equally fast unloading plants.
That suggested ships designed principally to
carrv coal and to fit into those docks.
With this theory established, at least five of
our eoal-exporting concerns have, within the year,
bought or built ships of their own. One eom-
pany has diverted its vessels, heretofore em¬
ployed in our own coastwise trade, to the foreign
trade. Another company at first took time
charters on ships and then bought them. The
third company has built new boats of its own.
A fourth is having ships built now which will be
delivered in a short time. A fifth company an¬
nounces, just as we are about to go to press, that
it has bought the fleet of boats that have here¬
tofore been under a different management. Thus
we have five coal fleets already and others will
be forthcoming as fast as the shipyards can turn
them out.
An accompaniment of these boats will be the
erection of fast unloading plants at the points
where we expeet to do a big coal business.
These will duplicate the fast loading plants
which we have on the Atlantic coast. To indi-
The Panama Railroad Company is most fortu¬
nate at this time in that the Government had the
foresight some two years ago to make an
appropriation for building colliers for carrying
coal between the American ports and the Panama
Canal. During the building of the Canal, the
Government was depehdent upon private trans¬
portation, and the average cost of transporting
coal from Hampton Roads to Colon ran around
$1.40 per ton. At this writing, vessels to take
coal to Panama could hardly be secured for $.1.00
per ton.
Coal requirements when the Canal was being
built ran around 500,000 tons per year, and iq)
to the time the Canal was closed early in October
by the Culebra slides, the bunker requirements
of steamers passing through the Canal was run¬
ning around 45,000 tons per month. So that it
is reasonable to anticipate that the requirements
when the Canal is reopened and shipping is re¬
sumed generally, will be considerably in excess
of 500,000 tons per year.
About six months ago, the Panama Railroad
placed in commission the first of two colliers
that were built for it upon special designs, the
construction work being done bv the Maryland
Steel Company at Baltimore. What was con¬
sidered by many shipping men to be a most radi¬
cal requirement, was that these steam colliers
should make fifteen knots per hour when loaded.
The cargo capacity is 13,000 tons, and bunker
.space allows for about 1.500 tons more. Not onW
did these steamers make fifteen knots on their
trial test, but have been able to make it after
six 'nonths in service.
When these colliers were designed, it was
stated that they would be able to transport coal
from Hamoton Roads to Panama, a di.stance of
about 1,600 miles, unload and return in ballast
to the coal loading piers on the Atlantic seaboard,
at a cost of approximatelv $1.00 per ton. It is
understood that these colliers have been able to
make good the duties required of them. Thev
have not been making their fu’l speed, because
this has not been considered necessary, as it is
found that a speed of eleven and one-half knots
is more economieal. These boats were built for
a maximum speed of fifteen knots, so _ that in
case they were needed as naval auxiliaries, they
could be so utilized.
It is understood that the two colliers have been
carrying approximately 35,000 tons of coal per
month to Panama, and they could take consid¬
erably more if they were given quick dispatch
at the other end.- Early the coming year the first
units of the Government’s coaling plant at Colon
will be ready for service, and these steamers
will, therefore, be given very quick dispatch so
that they can then make a quick turn at each
end of their trip.
In the construction of these vessels, all ma¬
terials used were in accordance with Lloyds’
Glassification Society rules, and the United States
Steamboat Inspection rules, except as modified bv
detailed specifications. The shipbuilders agreed
that the vessels should be sufficiently strong and
have sufficient stability without water ballast to
carry their equipment, machinery, stores and
bunker and cargo coal, and that when completed
in all respects, that all fittings and outfits and
loaded with 13.000 tons of cargo and 1,300 tons
of bunker coal, twenty tons of reserve feed
water, ten tons of drinking water and seventv-
five tons of stores and crew, the mean drafts
would not exceed twenty-eight feet one inch in
salt water, with ballast tanks- empty and the ves¬
sel 'trimmed not more than two feet by the stern;
that when completed and loaded as stated above.
cate how fast those are, it is only necessary to
say that they can load 10,000 tons into one boat
in a working day.
That is how we are solving the fourth problem
which confronted us.
The fifth problem concerns itself with our
financial policy abroad. It is not necessary to
dwell at length upon that subject here because
our activities have been treated elaborately in
another connection in this issue.
Seeing all of these things, the question raised
by the foreigner at the beginning of this article
■ — can America perform a miracle in the course
of a year and enter the export market before the
war ends — seems to us to be answered. America
has done practically the impossible. As a result
it, today, has a coal exporting organization which
is nearing completion.
except with bunkers empty and water in tanks
as necessary, the trim should not exceed one foot
by the head ; and that the metacentric height shall
not be less than eighteen inches at full loaded
condition without the use of water ballast.
The contractors also guaranteed that the coal
consumption for all purposes would not exceed
on trial B, 850 pounds per knot run reduced to
fourteen knots speed in proportion to the fourth
power of revolutions.
When these colliers were under negotiation,
the Panama Railroad Company submitted an esti¬
mate based on seventeen and one-half round trips
per annum for each vessel, which would mean
the transportation of 310,000 tons of coal per
vessel per annum, that the cost of transportation
would_ amount to ninety-seven cents per ton, not
including depreciation and interest on capital in¬
vested. It is understood that these colliers have,
during the five or six months that they have been
in service, given every satisfaction. It is, of
course, a source of great satisfaction to the
Panama Railroad Company that these colliers
were built so that their delivery was made this
past summer.
During the year 1913, the cost of water trans¬
portation on coal to the Isthmus had been $1,395
per ton. Prior to the building of these colliers,
all coal shipped to the Isthmus was carried down
in foreign bottoms. There was constant fluctua¬
tions in the cost of water transportation, but the
Government had been able to get what was con¬
sidered a reasonable rate on coal to Panama, due
to the fact that the steamers could get return
cargoes of ore and sugar from Cuba.
It is, indeed, doubtful that any contracts for
tonnage after the expiration of the charters made
in 1913 could have been consummated during the
past year at any price on foreign bottoms, and
there was so little American tonnage available
that the Panama Railroad Company could not
have secured it except at very high rates. Should
a contract have been entered into following the
expiration of the old contract for water trans¬
portation, on foreign bottom.s, the Railroad Com¬
pany would, no doubt, at this time be finding
themselves very much in the position of the
private shippers, who have had their vessel con¬
tracts invalidated by reason of the requisitioning
of steamers by the governments at war.
At the moment, vessels would be hard to ob¬
tain to take coal to Panama at $5.00 per ton.
At the present time, the Government is saving
easily $2.50 to $3.00 per ton on transportation of
coal to Panarna, and it is likelv that they will save
this amount, if not considerably more, for many
months to come.
The two colliers were given the name “Achilles”
and “Ulysses.” The contract for their construc¬
tion was entered into on Anril 9, 1914, and the
contract awarded to the Maryland Steel Com¬
pany of Baltimore, who made the lowest bid,
$987,500 each. This may seem high for ships at
tlpt time, but the Navy Denartment took the
view that m consideration of the character of
service, which these colliers will be ca'led unon
to perform and the importance of maintaining
their schedules with a minimum of delay for
repairs, that specifications for boilers and ma¬
chinery be somewhat in excess of ordinary rat¬
ings and specifications in order to obtain as great
reserve power and strength as possible.
_ On June 30, 1914, the Secretary of War de¬
cided that these colliers when completed should
be operated for the Panama Canal bv the Panama
Railroad Company in a manner similar to the
operation of the vessels of the Panama Railroad
Steamship Line, which vessels ply between New
York and the Canal.
The Ships Which Carry Panama Railroad’s Coal.
492
THE BLACK DIAMOND
[December 18
The Everett, Our First Ocean Going Coal Carrying Steel Steamer. She Is Shown Loaded with 7,200 Tons of Coal.
Getting a Fleet to Carry American Coal to Market.
In foreign trade our merchant marine consists
of thirty-seven steel sailing ships averaging 1,600
tons each, 544 wooden sailing vessels averaging
600 tons, 239 wooden steamers averaging 300 tons
and 331 steel steamships averaging 3,800 tons.
There are also 537 motor boats and 1,106 barges.
At this writing the merchant fleet of the United
States in service ranks second to that of Great
Britain. That is, due to war, Americans have
made some progress on the seas, and now ships
bearing the American flag are going to practi¬
cally all ports of the world that are open for
merchant vessels.
Prior to the war there were no vessels flying
the American flag in the Atlantic trade, with the
exception of an occasional schooner that made
some of the eastern provinces or some of the
West Indies ports. It had been many years since
a merchantman had crossed the Atlantic flying
the stars and stripes.
Now, with Germany’s merchantmen interned,
including the fleet of steamers on the Great
Lakes, the United States will, no doubt, rank
second to England in the tonnage of vessels now
actually in merchant service.
This article is intended primarily to show that
the coal men are largely responsible for the in¬
crease in the building of cargo ships, which has
enabled the United States to step in during the
past eighteen months and take advantage of the
remarkable shortage of vessels brought about by
the war. The diversion of steamers built origi¬
nally for coal-carrying coastwise exclusively, to
the general trade, has been of great benefit to
.American shippers in that it has enabled them to
export not only coal, but a great deal of cotton,
grain and other products, that otherwise might
not have moved. The benefit of this has not
only been to the profit of the ship owner, but
the farmer, merchant and transportation^ com¬
panies have also profited because of the existence
of American merchant vessels.
Prior to 1908, the only steamers flying the
American flag ran coastwise. There were not
so many steamers in service outside the regular
liners that made regular schedules between the
principal cities along the Atlantic seaboard and
the Gulf. Every line of steamers operating to
foreign ports was of foreign registry. The
steamers engaged in the coastwise trade were
combination passenger and freight steamers and
freighters.
Our local .ship-building plants had turned out
very few exclusive cargo ships other than some
oil 'tanks and some small freight steamers, most
(if which were for service betw-ecn New 1 ork
and the Gulf. .
It was in 1907 that the first steamers built ex¬
pressly for carrying coal were launched. 1 he
Fore River Shipbuilding Company in that year
began turning out colliers for the New England
Coal & Coke Company, to use in carrying coal
between Hampton Roads, Baltimore and Boston,
where the coal company had erected very modern
coal discharging and storing; docks. The colliers
were constructed with a view of having them
work quickly between coal loading piers at the
ports named and the Boston terminals. Four
boats were constructed of the same type. The
first of these was the Everett, named after the
What Our Coal Companies Are Doing to
Supply Transportation and the Theory
on Which Our Ships Are Built — The
Importance of Base Docks.
town where the company’s plant is located, in
the suburbs of Boston.
In planning these ships, the coal people said :
“We have piers where 1,500 or 2,000 tons of coal
per hour can be loaded into vessels. We have
at our Boston terminals a plant where 1,000 tons
per hour can be discharged, provided the hatches
of the ship permit. Why not build steamers
whose hatches will be uniform ; each ship to be
of the same size, so that our discharging plant
can be worked at maximum?’’
Moreover, the company found that it could
not depend upon schooners or barges for a reg¬
ular supply of coal. Both of these methods of
coal transportation were uncertain. Schooners
were dependent upon weather. They ran slow
when there was little wind. They anchored when
fogs were heavy. The same could be said about
the barges. Then there were no two schooners
built alike. There was no uniformity about the
hatches. Therefore, it was never possible to get
the Everett plant to work at full speed. And
full speed was what the company wanted and
must have.
Therefore, the design of the Everett. Briefly,
this steamer, and her three sister ships — the Mel¬
rose, Malden and Newton — were built with five
hatches, all uniform, self trimming with cargo
space for 7,200 tons and ample bunker space to
steam some 1,500 or 3,000 miles.
The Hampden Under Construction.
These steamers were the first words in Ameri¬
can collier building. They have been in service
now for more than seven years, and they are
modern yet. Here is a detailed description of
these steamers:
The length of each steamer is approximately
400 feet ; the beam, is fifty-three feet, and the
draft, loaded, is twenty-six feet. As stated, their
coal cargo capacity is 7,200 tons in addition to
bunker coal. Their speed is about ten and one-
half to eleven knots per hour loaded. Year in
and year out these steamers, including the more
recently built Newton, make an average of from
forty-two to forty-six trips each. This means a
service of great regularity and in this regularity
of movement lies the great value of such steam¬
ers both to the shipper and the purchaser of the
coal.
These vessels were built specifically to carry
coal and were of an entirely new type for such
trade. The propelling machinery is located away
aft, leaving the whole ship forward available for
cargo. In addition, these steamers are self-trim¬
mers, having top side ballast tanks arranged longi¬
tudinally in such a manner that the space formerly
occupied by the tanks is available for cargo. The
space now occupied by these tanks is that which
formerly required trimming by hand.
Here are some of the records made in loading
these steamers: At Newport News, on June 6th,
the Everett took on 7,500 tons of coal in two
hours and forty-five minutes, a world’s record.
At Curtis Bay piers, Baltimore, the Newton took
on 7,500 tons in. three hours and forty-five min¬
utes.
These boats, due to the fact that they run
regularly between modern loading and modern
discharging docks, average just about a round
trip per week. The distance between Hampton
Roads and Everett docks, Boston, is approxi¬
mately 650 miles. This means that each seven
days these steamers travel over 1,250 miles, re¬
ceive and discharge 7,200 tons of cargo coal.
This means that this fleet of four steamers is
capable of making forty-eight trips per year
each, and to transport a total of 1,400,000 tons of
coal.
Following the building of this fleet of steam¬
ers for coal carrying, other Boston interests be¬
gan building steamers on the Great Lakes or at
coastwise plants for coal carrying.
Two steamers were turned out at Camden, N.
J., for the Coastwise Transportation Company of
Boston. This company had formerly operated
.schooners or barges exclusively. It was in June,
1909, that they gave an order to the New York
Shipbuilding Company of Camden, N. J., for the
construction of the first colliers to be turned out
from their yard.
These boats were the “Coastwise” and the
"Transportation,” and these were delivered Feb¬
ruary 1st and April 1st, 1910, respectively. Then
followed the Suffolk, which was built in 1911.
The Suffolk type of collier was found to be
so complete in its details that this has been fol¬
lowed in the construction of other boats which
have been built for the Coastwise Transporta¬
tion Company since then. These boats were the
"Middlesex,” built in 1912; the “Norfolk,” built
in 1913, and the “Hampden,” which was launched
No. 25]
493
THE BLACK DIAMOND.
■
The Steamship Plymouth, a Type of Large Collier Built for Trans-Atlantic Service.
March 13, 1914. With the exception of the
“Norfolk,” which has a capacity of 5,000 tons and
250 bunker, the other boats have the same length
and tonnage as the “Suffolk.”
The “Suffolk” type is 391 feet over all in length,
has a beam of fifty feet and a depth of thirty-
two feet. Their total dead weight is 7,500 tons,
including both bunker and cargo. They are
fitted with triple expansion engines of 2,100
horsepower, which will produce ten and one-half
knots an hour loaded and eleven knots light.
They have eleven cargo hatches, fifteen by thirty
feet, all of which have immense steel covers
which are opened and closed by winches and
which are of length and breadth to allow easy
access for the grab buckets to get the coal from
any part of the hold. In the cargo hatches there
are no stations or pillars to interfere with the
free unloading of the coal. Neither are there
any cleatings or stringers on the side walls in
these holds so that coal can slip between them
and the hull. Arch webb frames as a means
of construction lend both strength and also add
to the freedom in getting the_ cargo in and out.
All of these ships are electric lighted and are
equipped with refrigeration plants. A crew of
thirty-four men is sufficient to operate these
boats. The engines are placed in the after end
in all of the boats named above.
In building colliers for the transoceanic trade,
which was the next line of construction to be
essayed by the New York Shipbuilding Company,
it was found that the large amount of bunker
coal used necessitated a different kind of a boat.
On January 15, 1915, when ocean business was
practically demoralized and there was a genera)
call for bottoms for the transportation of coal
for foreign ports and particularly to the Mediter¬
ranean, the Coastwise Transportation Company
entered into contract with the Camden concern
for the building of two ocean colliers, which were
to be so designed as to be the last word in coal-
carrying equipment.
It was found necessary to place the engines
aboard these boats in the center, so that the
proper sea-going trim would be preserved as the
bunkers were emptied.
These were a larger type of boat — sister ships
of 8,750 tons total dead weight. The first of
these ships completed — the “Franklin” — was
launched September 2'4. The second — the “Ply¬
mouth” — slipped off the ways on October 15.
The measurements of these two vessels are 395
feet in length, fifty-five feet beam and a depth
of thirty-four feet six inches. These boats are
now under charter to the Consolidation Coal
Company and are used in carrying coal to
Fgypt. Orders for a third boat of this type have
licf'ii placed.
The three boats for the Pocahontas Naviga¬
tion Company, which arc liuilding at the present
time, are of the same type as the “Suffolk,” but
of the carrying capacity of the “Norfolk.” The
“Virginia” of this fleet was sold to a shipping
company just before it was ready for service,
so an order was immediately placed for another
ship to take her place.
Another boat which the Coastv/isc Transpor¬
tation Company has contracted for and which is
now building is the “Bristol.” She is on the
ways and when completed will he of the general
type of the “Coastwise” and “Transportation.”
Two sister ships to ' the “Virginia” — the
“Jonancy” and the “Bylayl” — have been launched
for the same concern.
The “Virginia” is a vessel calculated to carry
5,500 tons total dead weight. Her engines are
set at the stern. To the bow and in the waist
rides her coal cargoes and the navigating bridge
and pilot house are set amidships. The immense
coal hatches have been built with the concen¬
trated idea of giving both the easiest means of
loading and discharging as well as safety in
carriage while in transit. Her officers’ quarters,
men’s quarters and the entire scheme of caring
for the crew are all most up to date and intended
to give the greatest amount of comfort and con¬
venience that a merchantman can afford.
The “Virginia” affords a good contrast between
the old and the new methods of coal transporta¬
tion. When the old type of wooden schooners
were in their hey-day, these were the principal
means of carriage of coal from one American
port to another. Nine to ten trips a year be¬
tween Norfolk and New England were sup¬
posed to be sufficient for a productive twelve-
month for such 4,000-ton vessels. One of these
reasons why, was that the old wooden hulks
could lay on demurrage and make about as much
money as while cargo-laden on the high seas.
With the coming of the steel collier, however,
this was found to be a poignant trespass on good
business. The steel collier owners set about to
remedy the condition. There must be quick load¬
ing and discharging in order that this type of
boat would pay. There must be sufficient trips to
lower the total cost of carriage and likewise pay
dividends for the owners. Forty to forty-eight
trips a year in the coastwise trade is what some
of the colliers in service to New England ports
are called upon to do.
Yankee brains have always been called upon
to meet conditions that particularly obtain to
this part of the world. So, when it came time
to build steel colliers for the American trade,
some changes in the old order of things were
projected.
With the closing days of October of this year
the company entered into contract with the
Darrow-Mann interests of Boston for the con¬
struction of two deep-sea colliers. One of them
eclipses anything that has yet been turned out
of the Camden yards. This boat — at the present
time unnamed — will have a total length of 453
feet, beam sixty-three feet and thirty-six feet in
depth. The capacity is to be 12,650 tons total
dead weight. The other ship is to be a dupli¬
cate of the “Plymouth” and “Franklin” above
referred to.
Some seven or eight steamers were built on
the Great Lakes during the past four or five
years for the coastwise coal-carrying trade. As
these steamers had to be brought to the Atlantic
through the Welland Canal, they could only be
built 260 feet long. This meant a cargo capacity
of 4,000 tons. Some of these steamers are the
“Geo. E. Warren,” “Edison Light,” “Mary E.
Harper,” “George Hawley,” F. J. Lisman,” “Sea-
connet.”
Recently the New England Coal & Coke Com¬
pany bought two steamers on the Lakes and
added them to their coastwise fleet. These are
the “Arlington” and “Brandon.”
The Clinchfield Coal Corporation bought two
new lake steamers this year and put them in
service between Charleston, S. C., and the Gulf
and West Indies ports. Two new steamers are
now being built at Detroit for tliis company, and
they will he placed in service next year. This
company also bought an old English steamer and
are having her rebuilt at New York yards for
the coal-carrying service.
Some six years ago the Berwind-White inter¬
ests had two steamers built in England for their
West Indies coal service. These steamers carry
8,500 tons cargo.
At the moment, American shipbuilding yards,
outside of the lake plants, are building 150
passenger and freight steamers. They also have
a lot of naval construction.
At Newport News, the local plant is building
seven oil steamers and ten miscellaneous freight¬
ers.
At the New York Shipbuilding Company plant
at Camden, N. J., seven oil and twelve colliers
and miscellaneous freighters are under construc¬
tion.
At Cramps, Philadelphia, vessels under con¬
struction include six oil, four passenger and
four freighters.
At Maryland Steel Company plant at Balti¬
more, ten steamers are under construction.
Eight oil steamers are being built at the Harlan
& Hallingsworth plant at Wilmington, Del.
Fore River Shipbuilding Company, at Quincy,
Mass., are building seven oil and three freight
steamers.
Also, all the Pacific coast plants are busy,
while local plants at New York are being en¬
gaged so that they can build freight steamers.
Moreover, some of our biggest financial inter¬
ests are now turning their attention to shipbuild¬
ing. They no longer look upon shipping as a
ri=k. The war has taught them that many of
our industries on land are largely dependent upon
sea transportation, and moreover, some of the
handicaps against American-built ships have been
wiped out by the war. It is. not anticipated by
those who have given some study to the question,
that England’s shipyards will in the near future
be able to turn out ships as cheaply as they did
before the war. The differential in labor, so
vastly in English shipbuilders’ favor, has largely
been removed, and it is not believed that they
are going to find the raw materials for ship¬
building as cheap as before the war. Further¬
more, it is believed that Americans will give to
shipbuilding in future the same serious attention
that they have given to other industries, and that
this will mean that ways will be found by which
ship construction on this side of the Atlantic can
be carried on, if not as cheaply ton for ton, then
on competitive basis, with ship construction
abroad. It is argued that the English ship¬
building yards will, for many years to come, have
to pay enormous taxes, and that the income tax
also will inflict such burdens upon shipbuilding
capitalists that they will not be so anxious to turn
out ships merely for the fun of it.
The Steamship Hampden, a Type of Vessel in Our Coastwise Coal Trade.
494
THE BLACK DIAMOND.
[December 18
How America and Europe Met on Coal Question.
The attitude of the business people of the
United States toward the foreign trade was, as
a rule ])rior to the outbreak of the war, one of
indifference. Since the general declarations of
war it has been one of intensified interest. The
possible foreign customer of American concerns
may fail to understand why a great nation like
ours should at one time be totally indifferent to
such an important subject and at another keenly
alive to it. The possibility is that we may be
.grossly misunderstood unless our change is ex¬
plained. . , , r
The best explanation of Americas change ot
front is made by C. L. Dering, the president of
the Chicago Association of Commerce. Ills or¬
ganization is, perhaps, the largest and strongest
individual or local commercial organization in
this country, and hence his word must carry some
weight. He said, in a recent address :
"Profits at home have been too easily made to
supply the necessary stimulus to the search for
profits abroad. Our own country with its natural
wealth has offered so rich a field that the foreign
field has seemed less attractive by comparison.
.\nd, if we in the past have viewed with com¬
placency the greater progress of others in the
winnin.g of world markets, it has been because
right here at home were more generous rewards
than could be found over seas. But we are fac¬
ing changed conditions.”
It is a fact, known to every student of our
affairs, that even before the war we were quickly
arriving at the point where production at home
was becoming so heavy, in nearly every industry,
the home market could not longer sustain the
full force of our productive genius. To find
relief we must do one of two things— abate some¬
thing of the zeal for production at home, or enter
upon a campaign to win forei.gn markets,^ which
would give us a broader market zone. We were
just at that point when the war broke out and
practically forced us to occupy the foreign market
in order to relieve the needs of oversea com¬
munities as to the necessities of life.
Even so, our occupancy of the foreign market
had thus to be almost instantaneous and hence
under something of pressure. This quick change
of front did not alter the fact that America was
going into markets that it did not know and that
.Americans were goin.g to deal with concerns
about which they knew nothing. It did not alter
tlie fact, either, that we were going to solicit
the trade of concerns and communities which did
not know us. There was ignorance, on our part,
of the credit standing of foreign buyers. There
was ignorance on their part of the financial
standing, productive capacity, quality of goods,
etc., of some of the most stable houses in
.America.
To clear up this evident and mutual lack of
understanding, there was need for some kind of
American representation abroad that was other
than commercial. That ks to say, the representa¬
tive of an American house mi.ght plead the
financial responsibility of his own concern but
his word was likely to be discounted on the
score of his self-interest. Also such a personal
representation could not very easily solicit an
order one minute and inquire pointedly the next
— with the order in his pocket — about the finan¬
cial standing of the person by whom the order
was given. In a word, it was necessary to estab¬
lish an accepted intermediary between buyer and
seller that the two might be introduced as their
respective standings warranted. This intermedi¬
ary must be someone who knew intimately about
home producers and foreign consumers and who
could in a way vouch for one to the either. He
could smooth the w'ay so as to make future rela¬
tions satisfactory and profitable to both.
'J'he most natural person to occupy this delicate
position was a commercial representative of our
government. In view of the fact that America
was the one that was seeking business, the com¬
mercial attache of the United States, accredited
to places where we wanted to sell, was the per¬
son to undertake this diplomatic mission. Since
lie was to speak for America, he must be some¬
thing of a diplomat. That he was skilled in the
fine points of commerce and knew what is needed
to help along the expansion of our trade went
without saying.
.America was fortunate in having, at the outset
of the war, a commercial attache in the person
of C. W. A. Veditz, who was at that time accred¬
ited to Belgium and France. Later he was, on
the request of its monarch for such a representa¬
tion and hence on the broadening of our com¬
mercial prospects in Spain, asked to e.xtend his
The United States Changes Front on
Exports Over Night and. Its Commercial
Attache Introduces Its Coal and the Pro¬
ducers in a Way to Expedite Business.
territory to include that country. He has per¬
formed, both for the American producer and for
the European buyers, an extremely important and
valuable service. As the result of his work, all
of these countries are in position to exchange
business on a bigger and broader plan in future.
It is understood, of course, that a commercial
attache must concern himself with all forms of
business. He must express industry as a whole
and not be a partisan of any one. At the same
time he must be able to treat each separate in¬
dustry intimately that it might be supposed his
discussion of anyone business were the sole object
of his mission abroad. Thus, while Mr. Veditz
concerned himself from time to time with touch¬
ing most of our business enterprises, he took
occasion to study minutely the question of coal
and the market for it because there is so much
opportunity for the immediate and future sale
of our product in Europe.
.Among others with whom he discussed that
question was the minister of public works of
France. As is outlined in another connection,
the French fuel problem is intricate just now and
far from simple. The minister of public works,
who buys the coal supply for the French rail¬
ways, was much interested in the broad question
of fuel, and particularly in what we have to offer.
He showed, in explaining France’s position, that
between fifty and sixty per cent of the French
mines are now in the hands of the enemy. Nat¬
urally, they arc not producing any coal for the
country which owns them. Further, he showed
that the supply, on which France has been de¬
pendant from Belgium and Germany, had been
cut off, naturally. This indicated that France
was depending for much of its coal supply on
England alone. Thus, as shown in another con¬
nection, is crippled first because the available coal
supply had to be spread out thin over such big
territory and, second, because England lost miners
to the army. This placed France in a position
where its coal supply was in jeopardy and where
it was eager to know more about coal supply, and
especially about the dependable concerns here
which produce coal.
When the position of France had thus been
disclosed, Mr. Veditz went as far as time would
allow into a preliminary study of the kind of coal
to which France has been accustomed. He wanted
to know what we must sell if we want to hold
trade. He could not carry this as far as he
wished because the information in dependable
form was not immediately available. He did
uncover some facts of importance. One was that
the French coal buyer wants, for steam making,
a coal which comes under thirty per cent in
volatile matter and perferably under twenty-five.
He disclosed the further fact that the French
buyer is not interested in any except a clean coal
that will not form a clinker, and will not, under
any circumstances, make smoke. This simplified
the discussion for Mr. Veditz. It told him that
certain American coals would suit admirably.
-Accordingly, he told the minister of public works
what American coal fields produce fuel coming
within those limits.- He indicated that at least
three veins in central Pennsylvania supply almost
unlimited quantities of this coal ; that nearly all
the state of Maryland produces it, and that three
big fields in West Virginia supply that quality of
coal. He showed further that some of the veins
worked in Virginia yield approximately the de¬
sired quality.
He was able to show from the tonnages pro¬
duced by these states and by the names of the
companies which operate in those fields that
France could buy any reasonable amount of coal
here and do business in America with the utmost
assurance.
This interview was timely in view of what the
leading American coal houses had done. Some
of them, seeing an opportunity to expand our
trade abroad, had established a.gencies in Europe.
Three in particular have salaried representatives
in London. These men are in charge of the
entire European market. They have branch
offices in France, in Italy, and in Greece. It hap¬
pened that these companies were soliciting busi¬
ness from France at about the time Mr. Veditz
made such a strong representation of our coal
and, incidentally, mentioned these companies as
dependable.
With the introduction of our producers thus
made, the field was opened to the American pro¬
ducer. By the same process our producers were
enabled to proceed securely, as they were given
every facility to learn who are the dependable
buyers of coal on the other side. The work of
Mr. Veditz has been of incalculable service, there¬
fore, not only to the American coal producer of
standing, but also to the French coal buyer of
reliability.
While our commercial attache was in Paris he
was visited one day by the representative of a
big coal house in England. This representative
said that, at first, he had heard about American
coal but had laughed at the idea. Afterward he
had heard some more about American coal and
wasn’t quite so sure 'that his early pessimism was
warranted.
Then he had seen some of the American coal,
after which he was decidedly uneasy. He wanted
to know about American coal — all about it.
Through this and other similar channels Mr.
Veditz was able to give important concerns in
France quite a lively impression of both the
quality and quantity of coal that can be shipped
from the United States.
.About that time, the American ambassador to
Madrid cabled the State Department at Washing¬
ton that Kin.g Alfonso had requested the appoint¬
ment of a commercial attache to Spain. No com¬
mercial diplomat was available for that post and
Mr. Veditz was asked to extend his territory to
include Spain. He went at once at the sugges¬
tion of the Spanish monarch to Madrid for an
interview. At that time, as is outlined elsewhere.
His Majesty consented to suspend the import and
transport taxes.”
Production of Peat in 1913 and 1914.
During 1914 no new processes or machinery for
preparing peat for fuel were reported to have
lieen given commercial trials in the United States.
The whole number of plants reportin.g production
was fourteen, of which ten sold peat for fertilizer
uses. Two firms that furnished data for 1913 did
not cooperate for 1914, and four firms are rep¬
resented for the first time, having made their
initial production during the year.
The fourteen plants known to be at work dur¬
ing the year were distributed as follows ; Maine,
1; Massachusetts, 1; Connecticut, 2; New York,
1; New Jersey, 3; Pennsylvania, 1; Florida, 1;
Alichi.gan, 2; Illinois, 1; Indiana, 1.
The following tables give the quantity of peat
products made and used in the United States in
1913 and 1914,* so far as these have been reported:
PRODUCTION, IMPORTS AND CONSUMPTION OF
PEAT IN THE UNITED STATES IN 1913,
IN SHORT TONS.
^—Production — ^ , - Imports - ,
L'se — Quantity. Value. Quantity. Value.
Fertilizer . . • ■ .28,460 $169,660 . .
Stock food . 4,800 27,600 .
Stable litter . 10,983 $55,719
jotal . 33,260 $197,200 10.983 $55,719
Fertilizer . .
.Stock food.
-Stable litter
- Consumption - \
Quantity. Value.
28,460 $169,600
4,800 27,600
10,983 55,719
Total . 44,243 $252,919
PRODUCTION, IMPORTS AND CONSUMPTION OF
PEAT IN THE UNITED STATES IN 1914,
IN SHORT TONS.
, - Production - ^ r— — Imports^ - ^
Use — Quantity. Value. Quantity. Value.
Fertilizer filler . 22,767 $136,994 .
Fertilizer . 14,962 112,905 . .
Fuel . 1,925 6,540 .
iscellaneous* . 7,439 53,253 .
Peat moss litter . 9,921 $57,542
Total . 47,093 $309,692 9,921 $57,542
‘Only one producer each of peat for stock food, mud
baths and paper pulp.
, - Consumption - ,
Quantity. Value.
Fertilizer filler . 22,767 $136,994
Fertilizer . 1M62 112, 90o
p-ygl . l,92o 6,540
Miscellaneous* . I’l'l?
Peat moss litter . 9,921 5i,542
Xotal . 57,014 $367,234
‘Only one producer each of peat for stock food, mud
baths and paper pulp.
No. 25]
THE BLACJK DIAMOND
495
Who Will Supply F ranee W ith Coal After the War?
America is asking today: "Who is going to
supply France with coal after the war is over?”
From certain indications Frenchmen in official
positions are asking the same question.
Both realize that France before the war con¬
sumed fifty per cent more coal than she pro¬
duced. After the war, her production will prob¬
ably be reduced for awhile and her consumption
will be increased. The question as to who is
going to supply that coal is a very live one,
therefore, and concerns both the American coal
producer and the French coal consumer.
A statement of the case, as made by one who
has first hand information on the subject is both
interesting and important to America and France.
He allows each to see the other and itself at
the same time. Prior to the war France con¬
sumed — the figures are official — sixty million tons
of coal per year.. The French production was
only about forty million tons. This left a deficit,
prior to the war, of about twenty million tons
per year. This deficit was made good by ship¬
ments from English mines of about ten million
tons and by shipments from Belgium and Ger¬
many of another ten million tons.
According to this authority, this interesting sta¬
tistical situation has been changed by the war
and perhaps permanently so. He shows, for
example, that the French mines in the north¬
western portion of the Country are under Ger¬
man control and are likely to remain so for
some time. He estimates that from fifty to sixty
per cent of the French mines are now in the
hands of the German army. Just what is hap¬
pening to those mines, no one knows. If they
are not being worked, the damage to some of
them may be almost irreparable. If they are
being worked, the damage due to the change of
method may be considerable. No one has the
slightest idea of what is likely to be their con¬
dition at the conclusion of the war. Therefore,
no one can predict with any certainty what their
productive capacity will be after peace is de¬
clared.
He considers it conservative to say, however,
that for several years these mines will not be
back to normal capacity. In the meanwhile, they
will be short of it at least twenty-five per cent.
Asuming that these mines had the capacity to
produce twenty million tons per year, to cut that
down twenty-five per cent would reduce it to
fifteen million tons. The result would be — as¬
suming consumption to be the same — to increase
the importation of coal in France by about five
million tons a year. That would make the coal
imports of France after the war twenty-five mil¬
lion tons instead of twenty million before the
war.
The possibilities, he believes, are for a much
heavier consumption when peace is restored, first,
because France will try to duplicate America and
produce more of the stuff that she uses than here¬
tofore, and second, because quite a good deal
of the coal burning equipment will be of a
temporary character and therefore more ineffi¬
cient than the permanent installations and hence
more wasteful of coal.
At any rate, this authority believes that France
will be in the market for twenty-five million tons
of coal when the war ends. That causes to be in¬
sistent the question: Who is going to supply
this coal?
To answer that question, he studies the situa¬
tion as it now stands and then assumes a pro¬
jection of the same situation into the coming
times of peace. At the minute, England is trying
to carry the whole burden of supplying coal to
France with such little assistance as she is get¬
ting from the United States. And it is quite a
job that England has undertaken. For example,
France, of course, is getting no coal from Ger¬
many. Further, the mines in Belgium which have
served her are, like her own mines, under German
control. Thus, assuming consumption to be the
same as it was before, or sixty million tons per
year, France is now short: Twenty million tons
from her own mines now under German con¬
trol and ten million tons which she formerly got
from Belgium and Germany. This makes a net
increased shortage of thirty million tons. As¬
suming a slowing down in her business due to
the war, the French supply, today, is short due
to the closing of her mines and to the shutting
off of imports from Belgium and Germany, in
excess of twenty million tons a year. This calls
upon England to supply not only the ten million
tons that she did before the war, but thirty
million tons additional or thirty million tons all
told. There is, of necessity, quite a good deal
Germany Will Be Cut Off, Belgium In¬
capacitated, and French Units Below
Normal — England and America Will
Compete with England at a Disadvantage.
of conjecture about these figures, but that con¬
jecture semes warranted under the circumstances.
The question then arises : What facilities has
England for meeting this extraordinary demand?
How is she going to do it? A statement of the
English position is made by the authority in ques¬
tion, who has recently studied the situation thor¬
oughly. He says that instantly the war was
declared, England lost twenty-five per cent of the
miners who left the pits and enlisted in the army.
This automatically cut England’s production, of
course, twenty-five per cent.
However, England could not sustain the twenty-
five per cent reduction in her coal output and
meet her growing demands. So she had to put
unskilled men in the mines. These were not
employed as practical miners, but as miners’ help¬
ers. While in that capacity they might have been
reasonably efficient from a manual standpoint,
they could not do the work of cleaning the coal
that the experienced miners’ helper was depended
upon to do. Therefore — and this is an important
point — the quality of the English coal has been
much deteriorated even though the quantity may
have been practically the same.
Still, even though England’s output was thus
restored to normal, it could not take care of an
additional demand for twenty million tons from
France and a much larger demand from its army
and navy without sacrificing its trade in some
other direction. This, according to the expert,
explains why England decided to shut off the
exports of coal except to English possessions
and to the allied countries. In a word, according
to this investigator, England was forced to sacri¬
fice part of its foreign commercial market in
order to meet the insistent demand of its ally,
France, for coal.
Projecting this situation beyond the close of
the war, the investigator in question then proceeds
to ask: What will be the English coal owner’s
position following the war? Many of the miners,
he says, who went to the war will never return.
Others who do return will hardly want to go
baxk into the mines again after having had a
year or more in sunlight. Some of those who
were recently taken into the mines may be ex¬
pected to return to their own callings when peace
is restored. England, therefore, is likely to have
a tremendous struggle to get its coal production
back to where it was.
In the meanwhile, England will have suffered
in two directions. It will have suffered a loss
of its commercial export trade due to the war
order restricting shipments. It will have suffered
a loss of prestige in France due to the fact
that people who heretofore have used French,
Belgium, or German coal have now been com¬
pelled to use, for the first time, the English prod¬
uct of inferior quality.
“That is,” says the expert, “the best coals from
England have been going to the navy, therefore,
they have not found their way into France. The
second grade coals, which alone were shipped
to these customers, are not of the best quality,
even when carefully prepared. But, today, it espe¬
cially lacks quality because it is not prepared ac¬
cording to the true English standard, that work
being done by unskilled men in the mines. Eng¬
land, therefore, is going to suffer in France from
the fact that she got her first hearing when she
had only a depreciated and off-grade product to
sell.”
As to where, in future, France is to get her
coal, opinions differ radically. An American,
who has studied the situation, believes that, after
the war, prejudice against the Germans will be
so strong no German coal can be sold in France
for years to come. However, a citizen of England
and a citizen of Russia take a different view.
They say that the prejudice against the Germans
is national and not personal. They say that even
though it should be personal, it will not dictate
business considerations. That is, they look upon
business as an impersonal matter altogether.
When the question of dollars and cents is in¬
volved, the matter of national disputes and per¬
sonal unpleasantness is soon subordinated. There¬
fore, with peace restored and with an urgent
que.stion of dollars and cents raised, they believe
that a German will have as good a chance to
sell in France as he has had heretofore.
However, all concede that while the Germans
may have a chance to sell coal, they will not
have the coal to sell because their working force
has been so depleted production will be decreased.
Also, after the war, the Germans will be so
eager to extend their markets beyond the con¬
tinent — it is for this right they are fighting —
they will not care to participate in the intensive
competition in nearby fields.
It is also conceded that while Belgium has an
almost unparalleled recuperative power, it will
take some time for the Belgian mines to get
back to anything like normal productive capacity.
This is due to the fact that the mines there are
so deep and working conditions normally are so
severe it will not be easy to restore them to
productive capacity.
Every suggestion made about the French situa¬
tion leads irresistably to the conclusion that
America must sell coal in France not only now
but hereofter. According to some authorities,
we have a sure market there for about ten mil¬
lion tons of coal a year.
In that connection America is considering two
or three questions which concern her future
vitally. The first one is the character of the de¬
mand for coal in France. This demand may be
said to come under two heads. The average
French buyer of coal says, for example, that coal
under twenty-five per cent in volatile matter is
a steaming coal; that which runs over twenty-
five per cent and especially over thirty per
cent in volatile matter is a gas coal. He con¬
cedes that there is a neutral zone ranging between
twenty-five and thirty per cent where a coal
may be either a steam or gas producer.
The French buyer knows that, as a rule the
work over, the low volatile coals are more
friable than those which are higher in volatile
matter. There is no scientific explanation of
this fact, but it is generally recognized to be
true. Therefbre, when the Frenchman buys a
low-volatile coal, he rather expects to get one
that will break up easily. However, on the other
side he has been acustomed to a form of prepa¬
ration _ which overcomes this natural difficulty.
That is, the foreign coal producer has become
accustomed to briqueting his fine coals and the
Frenchman has been accustomed to using those
briquets.
The point which the American is beginning to
appreciate is that the Frenchman insists upon
quality and also insists that coal of good qual¬
ity shall be prepared in the way he is familiar
with. We also know that the French have no
objection to paying whatever price is dictated by
the combination of proper quality and the proper
preparation. These facts are sure to influence
our exporting program.
The second matter which confronts the Amer¬
ican exporter to France is that of transporta¬
tion. The matter of distance alone from our
coal loading ports to France, as compared with
the distance from English coal loading ports to
France makes a difference in the ocean freight
rate. This difference varies, but is considerable.
The transportation fact about which our coal
people are thinking most is that the big factor
in rates isn’t so much a matter of distance as a
matter of the time involved in a voyage. We
have corrected part of the differential in time
against us by increasing the speed of the loading
facilities at our home ports. We have not as
yet finished the correction of the time by putting
up faster unloading equipment at the other end
of the route. The unloading time for boats in
France is rather slow now, being about six
hundred tons a day on the average, with perhaps
a few very exceptional cases where a thousand
tons a day can be done if every facility were
pushed to the limit and if the men worked with
extraordinary zeal. This, of course, is not fast
enough to correct the factor of time against us
and thus correct also the freight rate which takes
time into consideration.
Our American coal producers are familiar with
the situation and today know the need. As a
consequence they are planning to overcome this
obstacle. It would not be surprising if they suc¬
ceeded in putting in some co-operatively owned
docks that would make as fast time in unloading
in France as they make in loading at our own
ports.
The buyer of coal in France may be sure of
this one thing : America appreciates the oppor¬
tunity of doing business there now and is going
to do what is commercially necessary both in
preparation and in transportation in order to
warrant the patronage of French coal buyers.
496
THE 15EACK DIA3I()ND
[December 18
Vital Statistics of Some of America’s Markets.
Valencia, Spain.
The American Consul at Valencia, Spain, writes
The Black Diamond, under date of August 5th,
on the coal situation there at that time as fol¬
lows :
“Although the coal movement at Valencia reaches
the respectable figure of 350,000 metric tons
(3,204.6 pounds to the ton) yearly, more or less,
it is so distributed that hardly one-fifth comes
within the scope of freely competitive business.
“About twenty per cent of the total is native
coal from the Asturias mines of northern Spain,
which always has a limited outlet because it is
slightly cheaper than imported coal though ad¬
mittedly of inferior grade. The tendency in re¬
cent years has been to discard it, however, as
shown by steadily declining receipts, which now
range from fifty to sixty thousand tons against
a former yearly consumption in excess of 80,000
tons.
“Approximately 150,000 tons of foreign coal
are imported yearly for three concerns. All of
it is contracted for outside of Spain, and con¬
stitutes but a fraction of the gross requirements
of the interested concerns in the kingdom at
large. Naturally their purchasing agents demand
and receive the personal concurrence of foreign
shippers or their agents who desire to bid for
the business. Only about 50,000 tons of foreign
coal are purchased in the open market by seven
retail concerns in Valencia or parent corpora¬
tions in other localities, for general consumption.
"The three large consumers are: The North¬
ern Railroad of Spain (Ferrocarriles del Norte
de Espana), about 100,000 tons, purchased by the
main office in Paris; the Aragon Central Rail¬
road (Ferrocarril Central de Aragon), 20,000 to
25,000 tons, with the purchasing office in Brussels;
and Lebon & Cia., 2'5,000 to 30,000 tons, also con¬
tracted for by its Paris headquarters for a chain
of gas works in Mediterranean ports.
“American gas coal has been used here in
varying quantities for many years, and of late
the Northern Railroad of Spain has received
several cargoes from the same source and is said
to have arrangements for an indefinite period.
As far as can be ascertained the Aragon Central
Railroad has made no purchases for Valencia in
the United States.
“Interested exporters in the United States
would gain nothing by addressing inquiries to
Valencia, but should arrange to send personal
representatives to headquarters of the concerns
mentioned.
“The general coal trade of Valencia and trib¬
utary territory is not alluring from the American
exporter’s standpoint. Fifty thousand tons is a
small consumption, in spite of the limited in¬
dustrial development of the region. An import¬
ant dealer estimates that hardly twenty factories
use as much as 500 tons a year, while the vast
majority consume between five and twenty-five
tons. Coal is not used to an appreciable extent
for heating purposes. Winters are very mild in
the first place, and during the three months or
less of coldest weather coke and charcoal are the
fuels used, the former being supplied by the
gas works and the latter by individual enterprise.
“Quite recently coal consumption has been al¬
most stationary, with a slight tendency to decrease
with the gradually increasing supply of cheap
hydro-electric power. Steam is now used as
auxiliary power in many plants where formerly
it was primary motive power. Electric power is
also displacing steam in numerous irrigation
plants. In general it may be conceded that the
use of coal in this region, except by public service
corporations, will not increase ; rather may it be
expected to decrease as new electric developments
now contemplated are completed and in opera¬
tion and transmission lines are extended to re¬
gions not hitherto served.
“Previous to the war England supplied nearly
all foreign coal consumed here. The only excep¬
tion consisted of an occasional cargo of gas coal
from the United States and sometimes from
Belgium. The English monopoly was easily
maintained by reason of the high reputation en¬
joyed by Cardiff and Newcastle coals, and the
efficiency of maritime communications. A numer¬
ous fleet of fruit vessels ply nine months of the
year between this coast and England, carrying
oranges, onions and other products of the soil
and returning with any cargo that is offered.
The latter consists chiefly of coal and fertilizing
materials, which together embrace considerably
more than half of Valencian exports, so it was
(|uite natural that her coal should predominate
here. The trade was further fomented by the sharp
competition among fruit vessels, which, in time
of peace, insured low freight rates and enabled
local dealers to carry on business with limited
capital investment, giving rise to the now well-
established custom of ordering frequently and
in small quantities. Cargoes of English coal sel¬
dom exceed 2,000 tons, and are generally not over
1,000 tons. Quantities of 100 to 500 tons are
quite usual. Local competition and the limited
gross consumption (a good part of which is re¬
stricted by contract to English coal) compel
dealers to maintain this system of buying as far
as conditions permit in order to avoid being
caught with large stocks on hand in times of
sudden price changes, fluctuation in ocean
freights, etc.
“For these reasons no one firm here feels dis¬
posed to handle cargoes of 3,500 tons or more
from America; and smaller shipments would
prove uneconomical. Of late an American coal
exporter investigated this field in person and
reached the conclusion that the obstacles outlined
would prevent business unless local importers
would combine enough small orders to make a
full cargo. One of the dealers interviewed said
this might be done if all of his colleagues would
agree to protect each other by maintaining prices
until the cargo was disposed of, and intimated
that conferences were being held with this in
view.
“There are only four independent coal im¬
porters of importance in Valencia (see attached
list). Another firm handling bunker coal is
merely the agent (without authority of pur¬
chase) of a larger concern in Barcelona having
the privilege of maintaining floating coal depots
in .Spanish ports. A sixth concern is bound by
contract with English collieries (through partner¬
ship connection to supply its entire needs from
that market.
“The facilities for discharging coal at Valencia
are fairly good. The sea side of two docks are
set apart for this purpose, each having accommo¬
dation for one very large vessel and equipped
with two one-ton electric traveling cranes. Hand
labor is also employed with the aid of the typi¬
cal mat baskets used here in all kinds of manual
labor. The average rate of discharge is 250 to
300 metric tons per day, but this varies with the
facilities offered by the ship. Some contracts
specify as much as 400 to 500 tons per day of
ten hours. The S. S. Rosebank, recently from
Baltimore, with coal for railroad use, discharged
at the latter rate. Receivers do the unloading,
but collect from the ship at the rate of 1.50
pesetas (about 27 cents) per ton, although the
actual cost usually works out as less.
“All fiscal charges on imported coal (except
port duties) are suspended temporarily. Usually
the chief items are customs duty and transport
tax, the former being about sixty-eight cents a
ton and the latter thirty-nine cents on American
coal and nine cents from European countries.
“It is calculated that steamers of 8,000 to 10,000
dead weight capacity can be accommodated in
the port of Valencia.”
Pernambuco, Brazil.
Consul A. T. Haeberle of Pernambuco, Brazil,
under date of November 2nd, writes as follows :
“Since August, 1914, the consumption of coal
in this district has been reduced notwithstanding
the fact that about fifteen months ago a very
heavy consumer of coal entered the field when
the Pernambuco Tramways and Power Company
substituted the present electric system for the
long-used mule car system. This company owns
and operates the gas company’s plant also and
so are large importers of coal. Much more coal
will be imported in the future when the tram¬
way company installs the proposed electric light
plant. At present the trolley wires are extensively
tapped to supply much of the downtown street
and store lighting. Incidentally there will be
additional power required for the running of the
elevators in the many new business blocks build¬
ing or proposed.
“The power houses of the tramway company
being new and modern, that company is able to
use in its fireboxes the fine American coal from
which they are obtaining good results. How¬
ever, in most of 'the grates in Brazil it is possible
to use only the larger sized screened coal which
is imported from Wales.
“High freight and insurance rates is responsi¬
ble for the tendency to cut down, save and sub¬
stitute whenever possible. The numerous inter-
urban railroads are now using wood where
formerly they used coal. Cotton and other fac¬
tories are beginning to use wood wherever possi¬
ble. The sugar mills use “bagaco” (the dried
pulp left after the sugar is extracted from the
cane) and wood when there is not sufficient of
the former.
“The fewer number of vessels touching this
port since the war has, of course, played an im¬
portant part in the reduced coal consumption.
“The shutting down almost entirely of the
extensive dock improvement work and of other
municipal construction work, should also be
noted.
“This being a tropical climate, no coal or other
fuel is required for domestic heating purposes
and for cooking charcoal is used almost ex¬
clusively .
“There is no water power to be developed in
this section so that all power is generated from
steam plants.
Since August, 1914, Welsh coal has varied
from $12.50 to about $18.50 per ton delivered in
bunkers, while American coal varied from $10.25
to about $11.50, c. i. f. (Added to this are the
high handling costs, i. e., stevedoring, lighterage,
et cetera.) The present price of Welsh coal is
about $16.80 delivered in bunkers and of Ameri¬
can coal $10.50 c. i. f. Flowever, the prices are,
of^ course, constantly fluctuating.
“There have been no dock improvements dur¬
ing the past year and so cargoes are discharged
as formerly by means of lighters.
“From April 28, 1914, to March 23, 1915, not
one American vessel touched this port, however,
on March 24 an American schooner loaded with
coal arrived from Norfolk. To date fourteen
American schooners, carrying coal from the
United States, have arrived in Pernambuco and
mad sent from home in care of this consulate
indicates that there are three or four more
schooners en route.
"To date this consulate has not been successful
in obtaining authoritative information regarding
the imports of coal into this port, but it is hoped
that statistics will be received in the near future.”
Coal Trade at Gibraltar.
The American Consul at Gibraltar, Spain,
writes The Black Diamond under date of
October 25, about the coal situation there as
follows :
“I regret, however, to have to inform you that
no American coal whatsoever has yet been im¬
ported, the principal reason being that Gibraltar
offers no coaling accommodation for the storage
of large cargoes. Coal imported for mercantile
purposes is stored in floating depots moored in
the open bay and their capacity is very limited.
The number of hulks is nineteen, which number
cannot be increased owing to military objection,
their average capacity is about 1,800 tons.
“The advantages of importing British coal is
that orders can be executed more promptly, as it
IS impossible to estimate what the monthly sales
will be ; this is most important.
“Certain firms endeavored to import American
coal but, owing to the time cargoes would take
to arrive here, and the size of the cargo, the idea
was given up.
“The majority of the colliers arriving with
coals are of one to two thousand tons, and in
exceptional cases there have been steamers of
3,000 tons or over.
“During the present circumstances freights
fluctuated from 13s 3d to 30s per ton. Present
prices for coals are about 54s, ordinary Welsh,
and 52s Durham unscreened f. o. b., which are
the only coals imported here.
The government keeps a very large stock of
coal which is all of Admiralty descriptions.
‘‘No improvements have been made to acceler¬
ate the discharge of coal and the handling is
done by manual labor in baskets of 100 pounds
as heretofore.
“During the nine months from January 1 to
September 30, 1915, about 270,361 tons of coal
were supplied to 1,2'48 steamers.”
Chilean Conditions.
Tlie American Consul at Valparaiso, Chile,
writes The Black Diamond,, under date of
October 20, about the coal situation there as fol¬
lows :
“Prices of Pocahontas coal on this coast have
varied from forty-four to fifty-four shillings
during the past fourteen months. Present prices
are quoted as forty-six to forty-eight shillings,
depending on port and sailing.
“.'\t the principal ports in Chile all coal is un¬
loaded into lighters. Port conditions do not
indicate that any more rapid type of unloading
will be available for many years.”
No. 25]
THE BLACK DIAMOND
497
Why American Coal Sells at Low Mine Prices.
An incident which occurred recently suggests
that some buyers of coal in other countries may
have gained a wrong impression from the fact
that American coal sells at a low price at the
mine. To he frank about it, they may have con¬
cluded that our coal is worth no more, else we
would ask a higher price for it.
The one fact which stands out so conspicu¬
ously in the international market is that the aver¬
age selling price of coal at the mine mouth in
England is, even in normal times, two and a
quarter times as high as is the average selling
price at the mine mouth in America. We have
a saying in the “States” — borrowed from one of
our advertisers — that “there is a reason.” Per¬
haps the man who has been asked to buy some
of our coal and who has been told the price at
the mine has thought that “there is a reason.”
Indeed, he may have decided that we have such
a poor coal it is expensive even at that figure.
The incident which suggests that conjecture
happened here in the “States” some weeks ago.
One of our leading retail dealers advertised his
coal at a very low price. He made an unfort¬
unate se'ection of words and called it “cheap
coal.” When the people, who had been accus¬
tomed to paying a much higher price, read the
amount he was asking, they placed special em¬
phasis upon the “cheap” and slurred the “coal.”
One man who read the advertisement, remarked.
“What is going on here? Are you fellows
shoveling the whole mountain into the car and
calling it coal? Or, have your scales broken
down? What is wrong with the coal that you
name such a price upon it?”
The Origin of Our Prices.
It is true that American coal is remarkably
low priced. It is also true that America has
unusual quality in coal. Our government and our
whole industrial system had, of course, nothing
whatever to do with the quality of the coal, but
thev have had much to do with the price at
which it is sold. Therefore, a brief statement
is to be made here — for the interest of our read¬
ers abroad — which we hope will harmonize what
seem to be the hopelessly conflicting facts that
some of the best coal on earth is selling at the
lowest prices named anywhere on the globe.
As an initial proposition, we will ask the reader
to remember that the United States is an ex¬
tremely young nation. That is, politically, we
date back to 1776, but industrially we date back
only to 186,5. Our industrial history has en¬
compassed, then, only fifty-five years.
At the close of our Civil War, we had noth¬
ing but our natural resources and they were
locked up in the earth. But, we had no manu¬
facturing business, we had not even rail com¬
munication — or any other — between the places
where the resources were to be found and where
the center of population might supply enough
labor to manufacture them. Such immediate
neighbors as the north and the south were not
connected by carriers. This was one of the causes
of war, incidentally ; ignorance, due to a lack
of travel, bred hostility.
In a word, we were, then, where Russia is now
except that the average intel igence of our citi¬
zenship was higher. Industrially we were then
about where some countries of South America
are today.
One policy, only, was open to us. We had
things but no money. We needed money more
than we needed the things. So we decided to
sell what we had and get the money. We had, at
that early date, a notion we should go into the
export market as we have done in the last three
years. So we adopted the idea of “everything
going out and nothing coming in” — except monev.
We wanted to sell abroad and we built a tariff
wall so that nothing could come in.
We expected to get a big export business, hut
instead we drew one of the most remarkable ex¬
amples of internal expansion that the world hag
ever seen. We expected to sell our natural re¬
sources, hut we found that no European country
was particularly interested in our coal, iron, ore,
timber and what not. Europe clearly would not
buy them, but it was interested in their develop¬
ment ; it was perfectly willing to lend us money
upon them.
We borrowed that money, always expecting to
repay it by selling what we produced while using
it. We manufactured things, hut, we still could
not sell them largely because we were so busy
satisfying home needs. Thus we kejjt on for
fifty years, borrowing money abroad and using it
A National Zeal to Produce Has Brought
Over-Production and Loss — Our Excel¬
lent Mining Conditions and the Use of
Machinery Cut the Cost.
to build railroads, open iron and coal mines, hew
down forests and all that. Meanwhile we also
built great cities and came to have the most
astounding civilization in the world — astounding
because it got dimensions in such a short time.
It got solidity and beauty, too, along with the
dimensions.
Underlying all of this, there was one dominant
policy for the whole people. It was: “Make
two blades of grass grow where only one grew
before.” Build two miles of railroad where there
was only one. Open two coal mines where there
was hut one. Get two or more factories where
there was but one. In a word, our basic ambi¬
tion was to “produce.” We did that in every¬
thing.
This idea of production as the chiefest good of
the whole people dominates our business, our
law, our political economy, our politics, our sys¬
tem of education and even the thought of our
pulpits. You cannot read our literature without
finding the same ideal protruding from almost
every page. It is essentially the ideal of the
whole people. What wonder, then, that it should
dominate and mould our genius?
How would it be possible for our coal mines,
fitting so intimately into every phase of our
business, to escape expressing the same ideal.
Ours was a passion for production without rea¬
son and without definite goal. We produced re¬
gardless of our ability to consume. We pro¬
duced despite towering evidences, at times, that
we were overdoing the whole thing. We had so
much momentum along the lines of production,
there was no checking our progress. Along with
the procession, the coal mines produced also.
They knew nothing else to do.
The Railroads and Coal.
But the secret of our coal production lies a
little deeper. The one thing we needed most was
railroads. We needed them to bring the widely
scattered districts into closer social relation. We
needed them to develop the interior farms and
to carry things to the farmers. So, every dollar
that we could spare from production was put
into new railroad lines.
We built them so fast and we put down so
many of them that it was an eternal struggle to
make them pay. They were pioneering as far as
concerned the opening of new agricultural dis¬
tricts which had not yet come to flower and fruit
in the building of cities. Since the sections for
which they were built could not support them,
something else must. We came, then, to depend
upon the opening of coal mines to help pay the
running expenses of these carriers.
Naturally, with so much unprofitable (imme¬
diately) railroad building, we came to a time
when the money needed to finance or refinance
these lines was not readily forthcoming. We
had to tie something in with the railroads to at¬
tract the money of the investor. We decided that
this should be the coal lands. Thus we bound
the coal acreage and the carriers together in
many a financial flotation. And, in the end, the
coal lands had to develop mines and the mines
had to produce extravagantly to help pay the
railroad’s Interest.
It can be seen that, partly due to our national
mania to produce and partly due to the need to
give our new railroads some easily increased ton¬
nage, the coal mines came to he worked on most
an elaborate scale. We have, in fact, gone so far
in that direction we have hardly stopped to ask
whether all of this coal production is profitable
or how we shall set al)out making it pay a profit.
A detail of which the American coal producer
is vividly aware is that we have opened so many
mines we can produce nearly 6()(',0()0,000 tons of
coal per year for sale and still have the equiva¬
lent of ail of our mines standing idle one-third
of the time. In a word, we could, by merely
using the idle time of our miners and the idle
mine machinery, produce, easily, 300,000,000 tons
more coal than we do.
.As this indicates, our coal business lias not
been profitable. It is not now. It is hardly
likelv to he so for years to come. This fact is
boldly lirought out by one of our government
officials who says that of the six states which
produce more than eighty per cent of all our
coal, but one has ever been able to show a
profit, as a state. The other five have not taken
in over the counter for their coal what they paid
out through the cashier’s window for labor, sup¬
plies and the like.
As this indicates, the outside world is not get¬
ting American coal at a ridiculously low figure
because the quality of that coal is low. It is
getting our coal at a bargain merely because we
have overdone production and are now selling
our product at a loss.
In this statement, the American coal producer
is not asking the sympathy of the world. All he
asks is that his prices shall, being understood, be
considered as bargains and not as a condemna¬
tion of the product which he has to offer.
Influence of Machinery.
There is another fact which explains these
prices. The United States, from the beginning
of its industrial development until now, has made
such imperfect use of its working force it has
always been short of men. That is to say, work¬
ers have gone into the coal fields and have be¬
come anchored in their employments. There they
would get work for only three or four days a
week. While not enough to satisfy them, it tied
them to the mines and hence kept them out of
other employments.
The same thing has been true in our mills and
factories. We had so many working places, each
with its complement of men, and so little mo¬
bility of our working force, except in a few
occupations, we have been constantly short of
workers. What we have been able to import
has not helped us except temporarily.
For this reason, we have depended more com¬
pletely on machinery than any other nation. Most
of the others who are in our class as industrial
nations have faced the reverse situation — an
overplus of workers.
By depending upon machinery, we have learned
to produce extravagant tonnages from single
mines. It is, consequently, a small American
mine which cannot produce 3,000 tons of coal a
day. It is only a moderate sized mine which
produces 3,000 tons of coal daily. Our larger
mines produce from 4,000 to 6,000 tons. Naturally
this helps to cut the cost of production and goes
far toward dictating the low prices we name.
Further, our mines are relatively near the sur¬
face; have, on the average, thick veins; and,
have extraordinary roof and floor conditions.
All of these things help to dictate the extremely
low prices which we name. As is shown, the
quality of coal has nothing whatever to do with
the price at which the coal is sold.
Builds More Steamers.
The Clinchfield Navigation Company, of
New York, which is associated with the
Clinchfield Fuel Company and Clinchfield Coal
Corporation interests, will have three more
steamers in its coal service out of Charleston,
S. C., in 1916.
One of these steamers will be put in service
early next spring. This is the British steamer
Dunholme of 5,500 tons cargo capacity, which
was purchased about a month ago, and which
is now undergoing substantial repairs at the
shipbuilding plant of Tietjen & Lang in New
York. These repairs are of such nature that
the steamer wilt be eligible for American reg¬
istry when they are completed, so that the
stars and stripes will fly from her mast-heads.
On Monday of last week the Navigation
Company closed a contract with the Great
Lakes Shipbuilding Company of Detroit,
Mich., to build two cargo steamships, each
to be according to Lloyd’s Al specifications.
These steamers are to be of the same model as
the George Hawley and Edison Light, built
by this same shipbuilding company some two
years ago for Boston interests, and which
have since been engaged in the coastwise coal¬
carrying trade. These boats are constructed
with a view of having them fitted for any kind
of service, and both the Hawley and^ Edison
Light have been in the trans-Atlantic trade
since the war brought about such a scarcity
of tonnage and such enticing rates.
The new boats are expected to be in service
on the Atlantic early next fall. When they
are put in service the Clinchfield fleet will
number five vessels.
498
THE BLACK DIAMOND.
[December 18
Why Ocean Rates are High— Howto Reduce Them.
The world is facing the most serious shortage
of vessels in its history. Kates have now ad¬
vanced to such high levels that one wonders
how shippers can pay such transportation costs.
It is worthy of note that, so far, none of the
English or American writers have said anything
convincing about one of the most glaring causes
of our present inefficient vessel service — abnormal
detention at discharging ports, especially of coal
cargoes.
We, in America, have, during the last twenty
or thirty years, been frightened away from em¬
barking in the shipping business by tales of how
cheaply Englishmen can operate ships. \\ e
have been told that it was but to invite bank¬
ruptcy to try to compete with them. Hence, un¬
til the commencement of the present war none
of the American ships would venture away from
the coastwise trade. In the latter they were safe,
being given a monopoly by our federal laws.
It is interesting to note here also that notwith¬
standing the vessels used in American coastwise
service, built exclusively at American shipyards,
cost from thirty to fifty per cent more than ships
of same tonnage built at English yards, and that,
moreover, our ships are much more expensive
to operate— due to our higher standard of wages
and also to the fact that we have to carry more
officers and crew than the British ships— our
freight charges have bene much cheaper on the
average than the charges made by British vessels
for about the same mileage.
For the years 1909, 1910 and 1911, according to
Professor Jevons, an English authority on coal
and transportation, the average rate from Cardiff
to Bordeaux, about 540 miles, was 4s syid. This
is about $1.13. P'rom Cardiff to Diepe, 415 miles,
the average was 4s, 5d, or $1.06.
Now how does this compare with American
rates for the same mileage?
In 1914, the average price for transportation
of coal between Hampton Roads and Boston, was
sixty-eight cents. The mileage is practically the
same as between Cardiff and Bordeaux. More¬
over, this rate meant the return of vessels one
way in ballast.
The above rate was the average of all classes
of vessels. No doubt the modern colliers used
in this service, carried coal at fifty cents per
ton, or considerably under. On the other hand,
it is quite possible that the steamers taking coal
between Cardiff and Bordeaux and Dieppe, got
return cargoes.
Furthermore, a great deal of coal handled along
the Atlantic seaboard between Hampton Roads
and New England points is in schooners and
barges, many of which are antiquated, and con¬
sequently do not lend themselves to rapid un¬
loading. Moreover, a great many of the small
docks that the barges and schooners take coal to
are not equipped with modern coal-handling
equipment. Were all of the New England coal¬
receiving plants modernly equipped, and all coal
transported in the new type of colliers, ranging
from 4,000 to 12,000 tons cargo capacity, the
average per ton for all classes of transportation
would be most radically cut from the average
of sixty-eight cents per ton made last year in this
coastwise trade.
Just now when vessels are commanding from
twenty-five to thirty shillings per month per net
ton dead weight, as compared with four shil¬
lings the prevailing rate before the war, the value
of transportation is fully stressed. Therefore,
it is entirely within reason to argue that the
more trips between certain fixed points that a
steamer makes, the greater service it renders
and that the revenue return is accordingly in¬
creased.
The statement that the foreign countries that
import coal have paid during the sixteen months
of the European war, enormous premiums upon
their inadequate discharging and storing facil¬
ities for coal, is entirely supported by facts.
For many years the shipping world have fixed
a speed of nine to ten knots per hour as an
economic speed for a tramp steamer when loaded,
•hut little attention has been paid to the dock
question in most of the ports where tramp
steamers trade, as it has been argued that the
detention of a steamer ordinarily chartering at
four shillings per ton deadweight capacity per
month, is not so heavy as to offset the cost of
providing and operating modern discharging-
equipment, and but few ports in those foreign
countries that import coal have discharging facil¬
ities that will enable them to discharge a ship at
a greater speed than 500 tons of coal per day.
There are probably a half dozen exceptions where
A Study of American Port Methods
Gives Us Good Reason for Entering the
Foreign Trade, While Using Ships
Owned and Operated by Americans.
an average of 1,000 tons per day is reached, these
exceptions being mostly in the cases of large
industrial or railway plants, who have some idea
of the value of quick dispatch. Of course at
most places the ship pays a premium for dis¬
charge above a fixed tonnage per day, which is
usually 500 tons at most of the ports, and 300
tons per day at others.
It may be a very broad statement, but it will
no doubt be supported by facts if the proposition
were tried, that the tramp steamers that are now
engaged in moving coal between the Atlantic sea¬
board ports of the United States and the South
American and Mediterranean ports, could trays-
port fully twenty per cent more coal per year
than they are doing at present were they enabled
to dock promptly, and discharge their cargoes
say in not exceeding two days at destination.
Prior to the war, charters as low as nine shil¬
lings from America to the Mediterranean had
been made on coal cargoes. For a long while
the range of rates was between twelve and four¬
teen shillings. Today the lowest rate quoted is
around ninety shillings. America has built and
is still building the most modern docks for load¬
ing coal into cargo steamers, and no matter how
large a cargo steamer may be, it is possible to
give it a full cargo and full bunkers at any
of our principal ports within a working day. On
the Great Lakes, by means of modern equipment,
12,000-ton coal steamers are discharged within
a working day, and some of our coastwise plants
at ports that receive coal by water, as in the
case of Boston, have discharging facilities that
average 1,000 tons per hour per steamer. If,
for instance, Rio and Buenos Aires in South
America, which ports take the greater part of
the tonnage that we are now exporting to this
country, had discharging facilities that would en¬
able them to unload the average tramp steamer,
say 6,000 tons cargo capacity in two days, the
saving accomplished on a steamer of this capacity
at the present charter rates, would mean at least
eight days or $12,000. The average time of a
steamer from Hampton Roads to Buenos Aires is
three weeks. This means that a steamer taking
a cargo at Hampton Roads in one day, would
take up twenty-one days in reaching Buenos
Aires, and according to present methods, about
twelve days to discharge. Say that it came back
in water ballast taking twenty-one days, the
round trip would consume fifty-five days. Say
that ten days were saved in discharging and you
would find a ship making a round trip in forty-
five days.
The distance from Hampton Roads to Rio de
Janeiro is approximately 4,500 nautical miles. A
cargo steamer making ten knots per hour would
take about nineteen days to make the run. Say
that the steamer takes 6,000 tons of coal, and is
discharged at the rate of 500 tons per day, and
she would lay twelve days discharging, exclusive
of Sundays. This would m§an fourteen days.
Let us say that she could discharge in two days,
and allow her one Sunday, and she would be
in port only three days. Making twenty-two days
from port of origin of cargo to destination and
completion of discharge. This would mean a
saving of ten working days, or at the rate steam¬
ers are today being chartered to take coal to Rio,
about $22,650 on the voyage.
The freight rate on coal to Rio at this writing
is fifty shillings per ton. It therefore costs $72,500
to transport a 6,000-ton cargo of coal to Rio.
Figuring the time of the vesse.1 a' tually employed
in this work, and we have thirty-two days, di¬
vided as follows :
Days.
Taking cargo . 1
.\t sea.. .
Discharging . 12
22
Divide the cost of the charter, $72,500 by thirty-
two, and we have the cost per day of the steamer,
of $2,265. But, argues the shipping man, you
must allow something for the time the steamer
consumes in reaching the loading port. We
will do this, and see how it looks.
A great number of steamers that take coal from
■America, come to American ports, either Hamp¬
ton Roads, Baltimore, Philadelphia or New York
with cargo. If they then go to the Roads for
coal, the time consumed need not be longer than
two days. Say that they come in ballast from the
other side, and we would add twelve days. This
would make a total of , forty-four consumed in
taking a cargo of coal from Hampton Roads to
Rio, or at fifty shillings per ton freight, about
$1,650 per day. Ten days saved in discharging
would therefore mean a saving of $16,500. This
is quite a nice sum when one considers that prior
to the war a 6,000-ton steamer chartered at about
$6,000 a month, or $200 per day.
Let us see what modern discharging facilities
would mean at Genoa, where a great deal of
American coal is now going.
The distance from the American coal ports to
Genoa is about 4,200 miles. Thus a steamer trav-
aling at the rate of ten knots per hour would
make the run in 420 hours or under eighteen
days. Taking twelve days to discharge a 6,000-
ton steamer here, we would have the trip con¬
sume in time, about thirty-one days. Allow twelve
days for steamer to come on in ballast for cargo,
and we would have forty-three days consumed on
the tripi. At the present rate of freight to Italy,
about eighty shillings, we have a 6,000-ton cargo
of co.al costing about $120,000 for freight. This
would mean about $2,800 per day as the cost of
the ship.
Willard, Sutherland & Co.
Effective January 1st, the coal business of Wil¬
lard Brothers, a well-known New York house,
and the Atlantic & Eastern Coal Company, owned
by the same interests, will be consolidated under
the name of Willard, Sutherland & Company.
The principals of the new firm are Le Baron S.
Willard, who is now the senior member of Wil¬
lard Brothers, and John E. Sutherland, who has
been associated with the firm since it was organ¬
ized about ten years ago. Mr. Sutherland has
been a partner for the past five years. No change
in ownership or management is involved. The
company will maintain its present offices at No.
8-10 Bridge street. New York.
The steam and bunkering business of Willard
Brothers have grown very rapidly of late, and
they are now shippers of a large tonnage of high
grade Pennsylvania and West Virginia coals,
being financially interested in Pennsylvania and
West Virginia coal properties.
In addition to its general trade with large in¬
dustrial consumers throughout the east, the firm
does an important bunkering business at all of
the principal Atlantic ports, and are also prom¬
inent in the export trade, being large shippers
through Hampton Roads of the well-known New
River and Pocahontas coals. In Europe, they are
represented by Gueret, Gait & Co. Ltd., of London
and Paris. They also represent a line of coal
depots, which enables them to contract for the
supply of bunkers at foreign ports in all parts of
the world, being American agents for James Bur-
ness & Sons of London and other foreign com¬
panies.
Buys Pacific Mail Ships.
New York, December 13. — The American In¬
ternational Corporation by interests connected
with the National City Bank and other prominent
financiers today announced the purchase of the
entire remaining fleet of the Pacific Mail Steam¬
ship Company, consisting of seven steamships.
In this venture the corporation has secured the
cooperation of William R. Grace & Co., importers
and exporters between the United States and
South America, who are represented on the board
of the new International corporation.
Incidentally by the step the last fleet of vessels
under the United States flag on the Pacific ocean
will not suffer complete disintegration.
The statement issued by officials of the Amer¬
ican International Corporation says :
“Since the or.ganization of the American Inter¬
national Corporation appeals have been made to
it to take up the situation, especially with a view
of saving, if possible, the shipping service between
Pacific ports and the west coast of Central Amer¬
ica. The San Francisco Chamber of Commerce
and the business men of the coast, it was learned,
have protested seriously against the breaking up
of the fleet.
“In order to maintain the shipping service with
Central America so that trade relations can be
continued the fleet has been acquired and will be
kept intact, enabling a continuance of the service
for the present.”
No. 25]
THE BLACK DIAMOND
499
The Proper Size of Coal for Locomotive Use.
The railroads in the United States, com¬
prising more than 225,000 miles of railway,
burn approximately twenty-five per cent of the
total bituminous coal production of the United
States. The total output has been averaging,
for the past few years, around 500,000,000 tons
per year. This means that American rail¬
roads burn each year around 125,000,000 tons
of coal, or more than one-third of the entire
coal production of Great Britain.
The supposition, naturally, is that as coal
is such an item of expense, the railroads use
it as economically as possible. It is to be
supposed that every known means of reduc¬
ing the use of coal and securing the greatest
results will be employed. Such has been the
case. There can be no dispute on that score
The American railroads are today getting
more value from the coal they burn than do
the railroads of any other country, with the
possible exception of Germany.
It was not surprising, therefore, that some
months ago, one of the big French railway
systems sent their chief engineer to America
to study our railroads and how they secure
the best results from the coal they burn upon
their locomotives.
In this connection, it is interesting and sig¬
nificant that many of the railways in foreign
countries which have sent their coal specifica¬
tions to American coal exporters recently,
have, with few exceptions, asked for lumpy
coal. In many instances, “double screened”
coal has been requested. Americans have
heard many stories as to why foreign railways
want lumpy coal. In none of these has the
question of economy been brought up. One
of the principal reasons given for the request
To show the foreign reader at a glance
where the principal coals suitable for and go¬
ing into export and bunker trades are loaded,
and who ship them, the table below has been
prepared.
Houston Coal Company, Norfolk, Va., Pocahontas,
Lambert’s Point.
Pocahontas Fuel Company, No. 1 Broadway, New
York, Pocahontas, Lambert’s Point.
B. Nicoll & Co., No. 149 Broadway, New York, Poca¬
hontas, Lambert’s Point.
Smokeless Fuel Company, No. 1 Broadway, New York,
Pocahontas, Lambert’s Point.
Crozer-Pocahontas Company, Philadelphia, Pocahontas,
Lambert’s Point.
Castner, Curran & Bullitt, Inc., No. 1 Broadway, New
York, Pocahontas, Lambert’s Point.
Hasler Bros., Norfolk, Va., and New York, Pocahontas,
Lambert’s Point.
Flat Top Fuel Company, Bluefield, W. Va., Pocahontas,
Lambert’s Point.
Chesapeake & Ohio Coal & Coke Company, Norfolk,
Va., Pocahontas, Lambert’s Point.
Berwind White C. M. Co., New York, Pocahontas,
Lambert’s Point.
Pocahontas Coal ■ Sales Company, Cincinnati, Ohio,
Pocahontas, Lambert’s Point.
West Virginia Coal Company, Richmond, Va., Poca¬
hontas, Lambert’s Point.
New River Coal Company, Charleston, W. Va., New
River, Newport News and Sewall’s Point.
Berwind White C. M. Company, New York, New River,
Newport News.
Chesapeake & Ohio Coal & Coke Compan.v. Norfolk,
Va., New River, Newport News and Sewall’s Point.
B. Nicoll & Co., New York, New River, Newport News
and Sewall’s Point.
Clinchfield Fuel Company, Spartanburg, S. C., Clinch-
field, Charleston and Lambert’s Point.
for lumpy coal for locomotive purposes is
that the firemen find it easier to fire the lumps
than the fine or run of mine. That the grate
bars used on most of the foreign operated
locomotive are so widely separately that the
fine coal falls through, and is, therefore, an
almost total loss. Whatever may be the case
it is unquestionably true that, until a few
years ago, Americans made but little prog¬
ress in selling coal to foreign railways. That
they have made such material increase in
exports to foreign railways during the past
two years, is chargeable directly to the fact
that they have been able to convince certain
foreign railway interests that the economy in
fuel consumption comes from using the fine
or run of mine coal.
That Americans have not gone in extensively
for screening coal for locomotive or general
stea muse is due to the fact that American
coals, as a rule, are ‘cut” out of coal measures.
That is, some coal is left for the roof and some
for the floor of veins, so that only pure coal
is brought to the surface. For this reason it
has not been necessary to screen it.
On the contrary it is charged that the
“double screen” habit originated in certain
of the foreign coal fields, where coal was cut
directly from between fire clay measures, and
screening became essential if a clean product
was desired.
The result of the study of the American
railway and the coal consumption questions
by the French railroad engineer is said to have
been his conversion to the plan of utilizing
fine coals for railway purposes. This will un¬
questionably be the verdict that any unbiased
engineer will arrive at from a similar study.
Hasler Bros., Norfolk, Va., New River, Newport News
and Sewall’s Point.
West Virginia Coal Company, Richmond, V'a., New
River, Newport News and Sewall’s Point.
C. G. Blake Company, Cincinnati, Ohio, New River,
Newport News and Sewall’s Point.
White Oak Coal Company, Newport News, Va., New
River, Newport News and Sewall’s Point.
Castner, Curran & Bullitt. New York, New River,
Newport News and Sewall’s Point.
Chesapeake & Ohio Coal & Coke Company, Norfolk,
Va., Splint, Newport News.
West Virginia Coal Company, Richmond, Va., Splint,
Newport News.
Castner, Curran & Bullitt, Inc., New York, Splint,
Newport News.
Wyatt Coal Company, Charleston, W. Va., Splint and
New River, Newport News.
Island Creek Coal Sales Company, New York, Splint,
Newport News.
White Oak Coal Co., Newport News, Va., Splint,
Newport News.
Consolidation Coal Company, New York, Fairmont,
Baltimore.
Hutchinson Coal Company, Philadelphia, Fairmont,
Baltimore.
New Central Coal Company, New York, Fairmont,
Baltimore.
B. Nicoll & Co., New York, Fairmont, Baltimore.
W. A. Marshall & Co., New York, Somerset, Baltimore.
Brothers Valley Coal Company, New York, Somerset,
Baltimore.
Berwind-White C. M. Co., New York, Somerset,
Baltimore.
W. A. Marshall & Co., Cambria, Baltimore.
Berwind-White C. M. Co., New York, Cambria, Phila¬
delphia.
Pennsylvania C. & C. Corp., New York, Cambria,
Philadelphia, New York.
Pennsylvania C. & C. Corp., New York, Clearfield,
Philadelphia. Baltimore.
W. A. Marshal & Co., New York, Clearfield, Philadel¬
phia, Baltimore.
Wittenberg Coal Co., New York, Clearfield, Philadel¬
phia, Baltimore.
Punxsutawney Coal Mining Co., Philadelphia, Clear¬
field, Philadelphia, Baltimore.
New Central Coal Co., New York, Georges Creek,
Baltimore.
Thorne, Neale & Co., Philadelphia, Georges Creek,
Baltimore.
B. Nicoll & Co., New York, Cumberland, Baltimore.
B. Nicoll & Co., New York, Georges Creek, Baltimore.
B. Nicoll & Co., New York, Davis, Baltimore.
B. Nicoll & Co., New York, Youghiogheny, Baltimore.
Pittsburgh Coal Co., Pittsburgh, Pa., Youghiogheny,
Baltimore.
Westmoreland Coal Co., Philadelphia, Westmoreland,
Baltimore, Philadelphia.
Keystone Coal & Coke Co., Philadelphia, Westmoreland,
Baltimore, Philadelphia.
Keystone Coal & Coke Co., Philadelphia, Greensburg,
Baltimore, Philadelphia.
Berwind-White C. M. Co., Philadelphia, Westmoreland,
Baltimore, Philadelphia.
Dexter & Carpenter, New York, Westmoreland, Cam¬
bria, Somerset, Baltimore, Philadelphia, New River, New¬
port News, Pocahontas. Lambert’s Point.
Thorne, Neale_ & Co., Philadelphia, Cambria, Balti¬
more, Philadelphia.
Alden Coal Mining Co., New York, Fairmont, Cam¬
bria and Somerset, Baltimore.
Skeele Coal Co., New York, Clearfield, Cambria, .Som¬
erset, Baltimore and Philadelphia.
Stonega Coal & Coke Co., Philadelphia, Stonega at
Charleston.
Whitney & Kemmerer. New York, Wicova at Charles¬
ton; Cambria and .Somerset at Baltimore and Philadelphia.
Hartwell, Lester & Clitter, Inc., New York, Poca¬
hontas, Lambert’s Point; New River, Sewall’s Point and
Newport News; Fairmont and Westmoreland at Balti¬
more; Somerset and Cambria at Baltimore and Phila¬
delphia.
A. Sidney Davison Coal Co., New Yoork, Cambria,
Clearfield and Fairmont at Baltimore and Philadelphia.
Chesapeake & Ohio Coal Agency, Boston, New River
at Newport News.
Gano, Moore & Co., Philadelphia, New River, Sewall’s
Point and Newport News; Pocahontas at Lambert’s
Point: Fairmont .Somerset and Cambria at Baltimore
and Philadelphia.
.1. J. Hobbs. New York, Pocahontas at Lambert’s Point;
Fairmont at Baltimore and Philadelphia.
Willard, Sutherland & Co., New York, New River,
Newport News and Sewall’s Point; Cambria at Baltimore,
Philadelphia and New York.
Western Fuel Company, San Francisco, Wellington,
British Columbia.
The Pocahontas, Netv River, Georges Creek
Somerset and Cambria coals are known as
low volatile- coals. Splint is a gas or high
volatile coal. Clearfield is a good steam coal
but running higher in volatile than the other
coals above named. Fairmont is a gas or vola¬
tile coal, and is used for both steam and gas
making. Youghiogheny and Westmoreland
are also well known gas or volatile coals.
Clinchfield and Stonega are volatile coals, run¬
ning around thirty to thirty-two percent, and
have many uses. Alabama coals are of vari¬
ous grades. The volatile is around twenty-
eight to thirty and in some cases the ash runs
verv low.
These coals take the following freight rates
from the mines to loading ports:
New River to Sewalls Point and Newport
News, $1.40 per gross ton. Splint or Kanawha
coals, to Newport News, $1.50 per gross ton.
Clinchfield and Stonega to Charleston. $1.40
per gross ton; to Norfolk (Lamberts Pointl
$1.50 per gross ton. Pocahontas takes rate of
$1.40 to Lamberts Point. Georges Creek takes
$1.18 rate to Baltimore: Somerset. Cambria.
Cumberland and Clearfield. $1.18 to Baltimore’
Fairmont, Pittsburgh, Youghiogheny and
Westmoreland, $1.43 to Baltimore: Colver,
$1.18 to Baltimore, $1.25 to Philadelphia. Ala¬
bama coals take an average rate of $1.10 from
mines to Mobile or Pensacola per net ton.
These rates apply to coal going into export,
bunker coals in some instances taking a higher
rate.
Coal Shipping Ports and the Rates Applying.
FIGo3
500
THE I5LA( K DIAMOM)
[December 18
Opening of Panama Canal Permanently to Traffic.
Naturally ship owners and coal contracting
linns throughout the world are interested in the
Panama Canal, and await the latest word as to
when it will l)e reopened for commerce. The
Panama Canal was first opened for traffic in
•August, and slides occurring in Culehra cut
have occasionally closed it, hut only for a few
days at a time until October 14th, when a slide
of such size appeared that tlie Canal was closed,
■At the moment it is still closed and predictions
as to when it will he reopened are made hesi¬
tatingly.
The latest information from Panama is under
date of Decemher 8th. A wire on that day said
that l)Ut fifty feet of earth locks the channel in
Gaillard cut, so rapid has been the work of the
dredges. It was expected that this miniature cut,
less than twenty feet high, would he removed in
a few days. This wire stated that while prospects
are that the waters of the two sections of the
canal will speedily join each other, there is no
expectation that the channel can be made ready
for the passage of ships for many weeks. It was
further stated that a more cheerful spirit over
the outcome of the dredging work and probabil¬
ity of definitely overcoming the twin slides in
the Galliard cut at an early date, is being mani¬
fested by the canal engineers, including Col.
Goethals.
On Ifecemlier 4th, Col. Goethals sent a long
report from Panama to the Panama Canal office
at Washington on the recent slides in the big
ditch. In this report, he estimates that from
7,000,000 to 13,000,000 cubic yards of earth will
have to be removed from the cut before the
slides are entirely stopped. He believes that the
amount will really prove to be about 10,000,000
cubic yards.
It should not be inferred, however, he says,
that the Canal must be closed for ten months or
until this large amount is taken out, for it is
the intention to pass ships as soon as a navigable
channel is opened with a fair prospect of main¬
taining it. He does not volunteer a statement
as to just when this will be completed.
General Goethals in the first part of his ex¬
haustive report discusses the causes of the earlier
slides, the theories offered in explanation of
them, and the steps taken to check the movement
of the banks and bottom of the ditch. Then he
comes to the slides of October of last year and
their treatment. He says in part :
■‘Ships were passed through the canal when a
channel of sufficient width and depth was dredged
through Cucaracha slide, and when there was a
very reasonable hope of maintaining it. In this
respect there was no subsequent disappointment,
and the dredges were completing their work in
this locality when, on Oct. 14, 1914, without any
warning, a section of the east bank north of Gold
Hill settled vertically 20 feet. This section meas¬
ured 2, OOP feet along the prism face and ex¬
tended l)ack about 1,000 feet from the axis of the
canal, generally along an irregular curved line.
The top of the bank was from 300 to O.lo feet
It Is Delayed by Recent Slides and the
Date When Shipping May Pass Is Not
Set — Report of Col. Goethals, Governor
of the Canal.
al)ove sea level, and the extension of the ground
eastward was relatively flat country. In the set¬
tlement the upper portion that broke away re¬
mained practically parallel to its original position,
and the benches which formed the upper part of
the slide had not changed their relative positions,
though they were badly broken up, while the
lower strata were s(|ueezed out across the canal.
"Subseciuently the liroken mass moved into the
cut, reducing the depth of water from 4.-) feet to
9 inches at one point. Until August, 19 1."), the
dredges were able for the most part to keep up
with the movement as it came down and probably
would have been al)le to maintain tins condition
had not a movement occurred on the west bank,
necessitating work on this side to the detriment
of the east side.
“A crack was found on the slope of Zion Hill
in June, 1914, but observations made upon it
showed no movement and the solidity of the hill
was never doulited. Subseeiuent to the break on
the east side, a gradual Imt general breaking up
of the west bank followed, and the crack on the
slope increased in size and new ones developed
farther up the hill, until finally one extended to
elevation 480, the limit of the present break. The
movement into the cut from the west bank oc¬
curred early in August, 191.1, when a section of
Zion Hill Ijroke away and settled down. The
edge of the break on this side is also a curve.
"TJie movements from the tw'o sides are to¬
ward the central portion of the inclosed area,
and at this central portion is the obstruction to
the channel. It first appeared as an island forced
up from the bottom, then as a peninsula project¬
ing from the east bank, and, finally, was pushed
entirely across the channel, completely closing it.
"The dredges in attacking the closure have
made little headway thus far, for any gain was
offset by a movement in the vicinity or in the
rear of the dredges, forcing them to withdraw
and begin again their approaches on it. These
successive movements are due in large measure
to the rains, which were above the average
through October. The amount of material block¬
ing the Canal at this locality could be easily re¬
moved in ten days but for the recurring move¬
ments. When a cut is secured through this mass
and it can be held, some idea can be formed of
when the passage of ships can be resumed, but
until this is accomplished it is impossil)le to make
any predictions.
“Sluicing the obstruction is producing some re¬
sults, and the nozzles are being increased and
streams with greater pressure are to l)e put at
work, to force the material to the dredges and
to draw down the material which is the cause of
oljstruction. This sluicing, however, will not de¬
crease the amount of material to be handled liy
the dredges. In the meantime, the dredges not
employed on the ol)struction are working to the
north of it digging the channel to full depth and
as much wider than the prism as is necessary to
remove those ])ortions of the slide.
"In moving toward the cut the material on the
east side is forming into a succession of waves,
which move gradually into the prism. The one
that occiqued part of the channel in October is
being dug away, except at the obstruction, an¬
other has formed in its rear, and still another is
forming up the slope of the hill. This material
in moving down has at the same time taken away
the support of the overlying rock on the north
side of (jold Hill, which, being seamed, becomes
overljalanced and Ijreaks away, producing the
same results as occurred on the south face of
Gold Hill during the removal of Cucaracha slide.
“On the west hank the wave effect is also evi¬
dent. Here the bank was pushed forward hori¬
zontally into the channel, followed l)y a settle¬
ment of the mass. The benches in some portions
still maintain their relative position with respect
to each other, but the ground in their rear set¬
tled, forming sink holes on the side away from
the prism. There is some movement northward
along the axis of these depressions into the prism.
The southern portion of this west bank has come
to rest, but projects into the channel.
"The breaks in the vicinity of Culebra cut were
handled by excavations in the prism and by steam
shovels lightening the banks above; at Cucaracha
a great deal of material was diverted from the
prism by sluicing. When the break of Oct. 14,
1!)14, occurred and examination was made to as¬
certain if relief could be afforded by either of
tlicse methods, but neither was practicable for
the east bank.
“The configuration of the ground made it im¬
possible to sluice any material away from the
prism. Steam shovels and trains could not oper¬
ate on any portion of the broken mass, which
was incapable of giving them necessary support,
and so far as concerned the stretch of ground
between the lireak and the limiting crack, it was
in such condition that before preparations could
be completed for beginning work it would be
broken up so that steam shovels could effect
nothing ; subsequent developments have verified
this. No further cracks or indications of a fur¬
ther extension eastward have occurred, and judg¬
ing from past experience the existing limits are
definitely marked, the farthest section being 1,300
feet from the east water line of the Canal.
"Similar investigations were made with regard
to the use of steam shovels and sluicing opera¬
tions on the west bank. The configuration of the
ground is such that all the material in the pres¬
ent movement will be taken away long before the
area involved could be reached. Like the east
side. Sluicing away from the direction of the
prism is impracticable.
"The conclusion reached, therefore, was that
Government Coaling Plant at Balboa, Canal Zone, Showing Progress of Work of Construction on September 15, 1915.
No. 25]
the only method of handling the slides on the two
banks is to remove the material from the prism
by dredges as it comes in. The breaks on the
two banks are clearly defined, and judging from
experience with other slides and breaks, the limits
of the movement have been reached.
■‘Mr. MacDonald, the geologist formerly em¬
ployed. passed through here on his way to Costa
Rica three weeks ago, and, after going thor¬
oughly over the slides, reached the same con¬
clusions as to the limits to which the sliding
would take place, and the methods employed for
handling the material. His profession, his inti¬
mate knowledge of the formation of the locality,
and his experience with the various slides and
breaks make his opinions on the subject of value.
He also expressed the belief that the troubles
due to slides would end with the removal of the
material from those in progress.
“When the break occurred in October, 1914,
and the subsequent breaking up of the west bank
became evident, it was decided to augment the
dredging fleet by another fifteen-yard dipper
dredge and three 1,000 cubic yard barges, all of
which are now in service, and the dredges are
handling at the slide nearly 1,000,000 cubic yards
per month at a cost less than 30 cents per cubic
yard.
“As to the amounts involved, it is difficult to
make any reliable estimate. As already stated,
when the break occurred at Cucaracha in 1913, it
was estimated that 3,000,000 cubic yards were
involved, but before the movement ceased 4,679,-
238 cubic yards were taken out by steam shovels
and dredges, in addition to upward of 1,000,000
cubic yards of material which would have entered
the prism had it not been removed by sluicing.
The length of the slides, which are directly
opposite each other, is approximately 2,200 feet
( the channel through which is navigable with the
exception of 600 feet) ; the banks are 300 to
3.50 feet above sea level on the east and extend
up to 480 feet above sea level on the west. The
area of the territory affected on the east side
covers 81 acres and on the west side 78.5 acres.
“Assuming that all material, lying above planes
extending from the outside limits of the bottom
of the prism, reference 40, up to the limits of the
1)reaks, will move into the Cut, 7,000,000 cubic
yards will have to be removed before the slides
are entirely stopped. Mr. Comber, Resident En¬
gineer of the Dredging Division, assumed a sur¬
face parallel to the surface, existing on Oct. 14,
the date of the last complete survey, and forty-
five feet below it, on which basis 13,000,000 cubic
yards would be the quantity to be handled. He
thinks, however, that a mean between the two
amounts may be more nearly correct, which was
the method of arriving at the 10,000,000 cubic
yard figure which has appeared in the press. It
is at best only a guess.
“It must not be inferred from this that the
Canal will be closed until this amount is dredged,
for such is not the case; on the contrary, it is
the intention to pass ships as soon as a channel
is secured through the remaining 600 feet, and
there are reasonable grounds for assuming that
a channel through the obstructed area can be
maintained.
It is certain that the troubles are due to the
failure of underlying strata because these were
unable to bear the weight that the banks brought
upon them. Under the circumstances it is diffi¬
cult to understand the impression that has gained
credence in some quarters that a sea-level canal
would have avoided the difficulties encountered,
since the cutting would have been through the
same material, but at least eighty feet deeper.
"It is also certain that nothing can stop the
movement now in progress until the angle of re¬
pose is reached for the materials under the con¬
ditions that exist, and that this can be reached
nly 1)y removing the excess amount of material.
If experience counts for aught, then that gained
'll the handling of the slides and the breaks that
have occurred along the line of the Canal leaves
no doubt that the means adopted and now in use
will effect a cure in the slides that now close the
Canal ; furthermore, that when cured no further
troubles need be anticipated from slides in this
locality.”
Acting Chief Geographer.
Secretary Lane has ordered the transfer of i\lr.
R. B. Marshall, chief geographer of the Survey,
to the position of superintendent of the National
Parks, effective at once, and to continue during
the balance of the fiscal year.
Mr. Sledge Tatum has been designated acting
chief geographer and he will continue to serve
as geographer in charge of the Rocky Mountain
division.
THE BLACK DIAMOND.
Rates on Bunker Coal
At this writing, those who supply bunker coal
on the Atlantic seaboard are undecided as to what
schedule of prices will obtain at the Hampton
Roads ports over 3916. This inability to decide
brought about largely several months ago by the
notice given by the three railroads serving these
ports, that rates on bunker coal would be ad¬
vanced twenty-eight cents per ton, effective Janu¬
ary 1st. The Hampton Roads shippers took issue
against the attitude of the railroads, inasmuch as
the railroads serving Baltimore, Philadelphia and
New York assured their shippers that rates on
bunker coals to these ports would not be ad¬
vanced. The Plampton Roads bunker suppliers
saw their trade drifting to the upper ports in case
the southern railroads insisted on an advance, and
consequently these railroads decided that for the
time being no changes in the Hampton Roads
bunker rates would be made.
However, they have not so far given shippers
assurance that rates will remain stationary
throughout the year 1916. Therefore, such ship¬
pers as have entered into contracts over the year
have in most instances inserted clauses which will
protect them in case the railroad rates are ad¬
vanced.
The railroads, it is stated, take the position
that they are compelled to abide by the decision
of the Interstate Commerce Commission, which
has authority to prescribe rates, and that should
the commission at any time decide that the rail¬
roads create a differential between coals intended
for bunkers and those for exports, that they
would be forced to make immediate revisions in
• their freight tariffs.
The Interstate Commerce Commission in the
case of a complaint brought before it on the part
of some of the shippers at a Gulf port, decided
that bunker coals were not entitled to an export
rate, but should take the local rate, which in the
case of Hampton Roads, makes a difference of
about twenty-eight cents per ton. The export and
“beyond capes” rate to Hamton Roads is $1.40
per gross ton, and this has always been the rate
on bunker coals supplied foreign vessels. The
local rate on road to Hampton Roads ports in¬
tended for domestic distribution is $1.50 per net
ton. If this rate were enforced, it would make
the bunker rate $1.68 per gross ton.
Contractors for bunkers for vessels engaged in
the foreign trade that call at the Atlantic sea¬
board ports, particularly New York, Philadelphia
and Baltimore, should bear in mind that the pres¬
ent high prices being asked at these ports for spot
lots of coal are abnormal. Coals that come to
Baltimore, Philadelphia and New York ports are
now affected by a shortage in coastwise transpor¬
tation, which has brought about such a scarcity
of coals in New England that mine prices in the
Pennsylvania bituminous fields and in the north¬
eastern fields in 'West "Virginia have advanced
in the past few weeks from fifty to one hundred
l)er cent. This condition may continue for some
weeks, perhaps for months, unless the transporta¬
tion question can be righted. This situation is di¬
rectly chargeable to the general shortage of ves¬
sels in the foreign trade, which has caused the
diversion of a great number of schooners and
other vessels that are at ordinary times available
for handling coal coastwise.
It will no doubt be interesting to the foreign
coal man to note that while prices on the Penn¬
sylvania and eastern West Virginia coals moving
through the ports above named have advanced so
radically that there has been no advance in the
prices of New River and Pocahontas coals that
move through Hampton Roads ports. This is due
to the fact that the New River and Pocahontas
coals cannot move by rail east of the Potomac
River, on competitive rates of freight, and as long
as there is a shortage of water tratisportation to
take these coals to NNw England ports, which is
their natural market, prices will remain easy, un¬
less a larger outlet to the west can be obtained.
While the west is calling for a great deal of New
River and Pocahontas, due to the enormous quan¬
tity of shipping in every direction, the railroads
are not able to supply shippers with the cars that
would he needed to materially increase their ship¬
ments west. Added to this, exports have fallen
off about fifty per cent from the summer ton¬
nages, because of the shortage of vessels, and this
also accentuates the easy position that the New
River and Pocahontas shippers find themselves
in at the moment.
However, it is only in extreme cases that for¬
eign vessels calling at Baltimore, Philadelphia
and New York have to go out into the market
arid buy spot coals and pay the high prices pre¬
vailing at the moment for same. Most of the
owners who send their vessels to these ports have
501
for 1916 Are Uncertain.
contracts with regular bunker suppliers, and so
far these suppliers have taken good care of their
customers. These suppliers in no few instances
are forced to buy spot coals at prevailing prices,
because of the great congestion of general mer¬
chandise at our tidewater ports, and the shortage
of equipment provided by the railroads for mov¬
ing coal from the mines.
In this particular, it is interesting to quote from
the bunkering number of “Fairplay,” the well
known London shipping paper, which under date
of November 18, in writing of the bunker situ¬
ation, said :
“'We must say that during the war, American
coaling contracts have been fulfilled in the most
honorable manner. The coal contracted for has
been shipped with good dispatch, and we believe
that we are correct in saying that not one single
complaint has been made by owners. Considering
the enormous differences in prices as between the
highest levels touched in Wales, and the contract
prices in the United States, it is greatly to the
credit of the United States suppliers that they
have so honorably fulfilled every contract, for
everyone knows that contractors could cause much
trouble by declaring inability to supply through
partial stoppages or strikes, railway delays and
causes beyond their control. No advantage has
been taken of such points as these.”
We might add that so far The Black Diamond
has not heard of any complaints from the for¬
eign shippers over the quality of bunkers that are
being supplied at our ports. Americans returning
from Europe during the past month have com¬
plained at the delay in arrival of their steamers
by saying that two or three days in some in¬
stances were lost because of poor coal supplied on
the other side, or that slow time was made be¬
cause the captains wished to economize on coal.
Questioning the economy of slow time, rigjit now,
when vessels are worth three or four times what
would be their average worth per day in normal
times, several shipping men in position to know
have told us that the ships are being supplied at
some of the European ports with bunker coals
from the English mines that are inferior to the
coals supplied in normal times. The statement
is made that the better grade coals are not avail¬
able for bunkers, due to the fact that most of
these coals have been requisitioned for govern¬
ment purposes. Also, recently, there have been
some very bad gales on the Atlantic and a good
many steamers have been compelled to put in to
Bermuda to get bunkers enough to bring them to
our ports.
The bunkering business at New York and Phila¬
delphia has been very good for the past two or
three months, due to the great number of steam¬
ers calling at these ports for grain and munitions.
The Russian government is shipping a great deal
of heavy tonnage through New York and Phila¬
delphia to 'Vladivostok. The steamers taking these
cargoes have to take large bunker supplies here,
as well as most of the steamers taking cargoes
to ports where the supply of coal is uncertain.
However, with freight paying so handsomely,
some vessel owners are stinting on taking more
bunkers than are absolutely required to get them
to destination.
Some interesting figures showing bunker coals
supplied the foreign vessels for a number of years
are given elsewhere in this issue.
Colorado Mine Commission.
PniL,\DELPin.\, December 15. — The President’s
Mine Commission to inquire into conditions in the
Colorado fields, will leave for Denver on Decem¬
ber. 26 and there will take up the various phases
of the coal mining problems which have been a
source of disa.greement for the past couple of
years. The personnel of the commission is. Seth
Low of New York, Charles W. Mills of Phila¬
delphia and Patrick Gilday, the well known rep¬
resentative of labor in the Pennsylvania fields.
The commission has written to Governor
George .\. Carlson of their intention and have
asked that any assistance which will expedite
their iiuiuiry be offered. It is the intention of the
members of the board to carefully review the
scope that is offered by the new industrial board
of the state of Colorado and go over the new
I'lan and working agreement of the Colorado
Ftiel and Iron Company’s new agreement with its
men. Various other lines of intiuiry have been
mapped out, but are tentative with conditions
which are met when the commission commences
this actual work in the field.
502
THE BLACK DIAMOND
[December 18
Double Tipple Loading Arrangement at Arno Mines.
Where Contentment Reigns Supreme — Keokee, Va.
Coal Offerings of the Stonega Coke Coal Co.
Forty square miles of coal lands, which
by outcrop, bore holes and openings are
known to run in uniform seams from five
and a half to seven feet and a half in
thickness.
A capacity production of four million
tons a year possible under existing con¬
ditions.
Enough coal to last, at the present rate
of production, for the next two hundred
years — and then some.
Coal of a quality which in its own
wealth of argument has placed it as a
premier in the east, west and south.
A geographical location which gives
entry to southern, middle western and
eastern markets and precludes a fore¬
shortening of car supply.
Five essentials to make a trade story
worth while. It is like taking the last
throbbing chapter from the end of a novel
to thus detail the meat of what is to fol¬
low, yet the foregoing is part and parcel
of the story of the Stonega Coke & Coal
Company’s immense operations in Wise
and Lee counties, Virginia.
Let us. then, get back to Genesis —
Working in Veins Which Produce Excel¬
lent Coal for Coke Making, Gas Produc¬
ing and Steam Generation, It Has Plants
with Which to Prepare the Product.
start at the beginning. The business of
the Stonega Coke & Coal Company
started, as its name would indicate, as
a coke proposition. Its mine at Stonega
was one of the first to be opened in the
Virginia coal fields. From this the anal¬
ysis showed that the coal was high in
volatile, low in sulphur and had the com¬
ponent parts to make good coke. In
existence today is one of the early reports
on the coke product. The comment de¬
clares it “to have the purity of Poca¬
hontas and a structure excelling the Con-
nellsville.”
Came a time, about ten years ago, to
be specific, when a combination of rail¬
way facilities and a reputation that the
coke made was an opening wedge for the
free sale of the coal that can be, and is,
produced at the mines of the company.
New openings brought in new lines of
coal to be placed on the market. The
range that is offered by the Stonega peo¬
ple runs, at the present time — good gas
coal, good steam coal, and good domes¬
tic coal — metallurgical, foundry and fur¬
nace coke with a national reputation for
excellence — and any bituminous propo¬
sition which can offer this need not take
a back seat in any mining congregation.
Yet there are other worlds to conquer,
according to the way that the officials
of this corporation look upon their prod¬
uct. At the present time about 10 per
cent of their coal goes to tidewater. Ac¬
tual tests made of Stonega coal show that
it will fill bunkering purposes and export
requirements. The opening of the South¬
ern Railway’s new coal pier at Charles¬
ton, S. C., offers a new channel to the
markets of the world, and Stonega coals
are to play even a bigger part in produc¬
ing the steam that propels the ships which
sail the sea and drives the wheels of in¬
dustry abroad.
Agents of the company have placed be¬
fore the foreign buyers the point of in¬
terest that the coal from the Stonega
Tipples Nos. 1 and 2 With Trackage at Roda Mines.
No. 1 Tipple and Braize Bin at Stonega Mine.
No. 25]
THE BLACK DIAMOND.
503
Portion of Coke Ovens at Stonega Mines in Operation.
Railroad Yards at Osaka With Tipple in Distance.
regions contains. The first ship to be
bunkered from the Charleston pier
sailed away with Stonega coal in her
holds — not that she was the first ship
to use Stonega coal, but the first to be
bunkered at a pier where it could be had
of free access. “Stonega Bunker Coal” it
was— coal that for bunkering purposes
will soon make a name for itself. While
high in volatile, Stonega cokes sufficiently
in the firebox to produce tremendous heat
and still can be so heavily fired that its
popularity with firemen and stokers
grows in direct proportion to its use.
Of its export and bunkering possibili¬
ties one of the strong points that has
been put forth is its excellent storage
qualities. On numerous occasions quanti¬
ties of this coal have been placed 'in
stocking piles and there has never been
a trace of spontaneous combustion. One
storage pile of 40,000 tons, under ex¬
treme weather conditions, stood for nine
months, near Greensboro, N. C., without
a sign of heating.
The Stonega Company is a young
man’s organization. At its head is Daniel
B. Wentz as president. In the early days
of operation of this company he was a
resident of Stonega and he is so familiar
with the region that much of the com¬
pany’s progressive policy can be laid to
his association with local conditions
there. Vice-president Dr. John S. Wentz
has so long been associated with coal
production and has been so prominently
connected with the development of the
Virginia coal field as to make comment
unnecessary. Vice-president Otis Mau¬
ser, who directs sales and traffic, has
long been associated with the properties.
Vice-president and General Manager
Everett Drennan was for years associated
with another large coal corporation, and
was instrumental in the development of
a great area in the Eastern Kentucky
fields. Vice-president Wm. C. Kent of
Wyncotte, Pa., concludes the directorate
.of the Stonega Company. Ralph E. Tag¬
gart, general superintendent, is a son of
the first general superintendent of the
company and also the man for whom the
Taggart vein was named. The younger
Taggart has been intimately associated
with the operating end of the interests
the whole of his life.
William Johnson & Co. are the repre¬
sentatives of the company, and have
charge of the bunkering of ships, which
is done at Charleston, S. C. Mr. Johnson
recently made a trip abroad to explain
the merits of the coal and meet with for¬
eign agents.
One of the strong selling points of
Stonega coal is its comparative freedom
from dirt or refuse. All of the mines —
Arno, Clover Eork, Imboden, Keokee,
Roda and Stonega — are drift mines. Of
the commercial characteristics of the
veins, the Imboden seam, which is mined
at Arno, Imboden, Osaka and the Ston¬
ega mines, is, in the run of mine, an
excellent steam and coking coal. In the
sized coal it gives excellent results for
domestic use.
The Taggart vein, which is found in
the Keokee and Roda mines, is the com¬
pany’s highest grade of gas coal. Where
mechanical stokers are used, the smaller
sizes have given utmost satisfaction to
users. Its big, blocky lumps takes odds
from no other coal for bunkerage pur¬
poses. It is also an excellent coking coal.
A feature of tipple inspection is used
at the mines of the company, and as one
phase deals with the commercial end it
will be taken up here and the mine in¬
spection later. The sales department
maintains an inspector at each tipple and
on each battery of coke ovens, who
Keokee Tipple and Slack Bin at Keokee, Va. Block! Coal Ready for Shipment From Stonega Mines.
504
[December 18
THE BLACK DIAMOND.
watches carefully every car of coal and
coke that is loaded and has strict orders
to refuse shipping instructions for any
or all cars which are not up to a strict
standard.
In addition, the company maintains a
testing chemical and physical laboratory
with the latest aj)paratus, and daily sam-
])les are taken and tests made of coal
from all of the workings. This brings
us to the point of the physical make-up
of the coals as mined by the company.
Below is given, for comparative purj)oses,
recent analyses:
STONEGA OR IMBODEN VEIN.
Moisture . 1.19
Volatile matter . 32.74
I'^xed carbon . 59.67
.\sh . 6.40
Sulphur . 0.757
B. T. U.
(as received) . 14119
(dry basis) . 14289
RODA OR TAGGART VEIN
Moisture . 1.12
Volatile matter . 34.4
Fixed carbon . 60.9
Ash . 3.58
Sulphur . 0.48
B. T. U . 15183
PROXIMATE GAS ANALYSIS FROM RODA
COAL.
I lydro carbon . 4.20
Carbon monoxide . 5.40
Hydrogen . 50.18
Methane . 32.73
Nitrogen . 7.49
Specific gravity . 38
British thermal units per cu. ft. gas . 661
British thermal units per pound coal . 3,298
Gallons coal tar per ton . 13
Pounds sulphate ammonia per ton . 26
Cubic feet gas per ton . 11,200
Per cent coke per ton . 63.8
Two things stand out today in the sale
of coal — two things vital and essential —
after the cardinal point of cost. The first
is quality and the second is preparation.
When He who made the mountains and
the seas finished His task, modern man’s
fuel was left tucked away far below the
surface. Like wine, age improved its
quality. So, when it is brought to the
surface, the work of the Master Hand is
over and the human must do its bit. At
the mines of the Stonega Coke & Coal
Company all of the latest and improved
methods of mining and engineering
brains can produce are being lavished on
tliis fruit of the bowels of Mother Earth.
A first principle in mechanical effi¬
ciency is the production of the highest
volume of power at the lowest minimum
of cost. So, in the production of inten¬
sive energy, electricity stands as the vital
power to make things move. The Ston¬
ega Company, with its supply of virgin
coal, looked elsewhere than at home from
which to obtain its “juice.” It could be
had at a lower cost.
From the Kentucky Utilities Company
it has contracted for a supply of power
sufficient and adequate to supply all of.
the needs of its six mines in this field for
the present and, if needs be, any require¬
ments that the future may hold. This
electrical company, which is under the
management of Samuel Insull of Chicago,
has increased its plant at Pocket, Va., in
order that any demand made upon it can
be met. Even more, it is also connecting
this plant with high tension provisions
with its other equipment at Verrilla, Ky..
and no matter what mishap may befall,
this will insure a continuous supply of
power.
Most modern forms of transmission are
used in bringing the current the thirty
miles across country, and once on the
property of the Stonega Company, the
very latest means of transforming the
high voltage to the various requirements
is to be found.
. The DC. stations are placed under¬
ground and as near the center of the load
as possible, insuring good voltage at ter¬
minals and on all power circuits. The
voltage is transmitted to each of the com¬
pany’s plants at 33, OCX) volts, where it is
reduced to 23,000 volts and then taken
through bore holes to the underground
DC. stations, where it is again reduced
through transformers to 196 volts. Then
it is converted into direct current, 250
volts, by Westinghouse rotary converters
— two to a station— of 300 kilowatt capa¬
city. Though this is an electrical tech¬
nicality, it is used here in explanation
that those who are familiar may see that
there is a sufficient and ready current to
use at all times for the motors and the
large number of various types of coal
cutters which are in daily use in the
mines.
In this connection it might be said that
all mining machinery is electrically
driven. Undercutters of the latest pat¬
tern and model do the bulk of the work.
A big four-and-a-half-ton top cutting ma¬
chine with a twenty-four foot arc is a
giant among this species. High speed
electric locomotives are used to bring
the coal out from all headings.
All six of the mines are equipped with
fire-proof fans and most modern systems
of mine ventilation. All of the fans em¬
ployed are reversible and of sufficient
capacity to assure good, fresh air at the
face of all workings. These, usually, are
run exhausting in the summer and blow¬
ing in the winter, and if free use of steam
to humidify the atmosphere inside is
necessary, attachment of this equipment
can be made at a moment’s notice.
In that we now have the coal on the
surface, let us return to the inspection,
two forms of which are employed, inside
and at the openings. Heretofore it has
been mentioned that the sales depart-
Type of Outside Sub-station in Use.
ment has a man whose eagle eye is on
all coal and coke loaded into railroad
cars. “Inside” inspectors are constantly
“on the job” to scrutinize the coal as it
goes into the mine cars. A lay-off or a
discharge is the penalty the miner draws
for persistently loading refuse. At the
tipple still another inspector takes one
loaded car from every twenty, reloads
it a shovelful at a time with extreme
care. Any dirt or refuse found here
means penalization for the miner. There
is no side-stepping this, and the miner is
going to right his idea of what is wanted
if he has to pay for continued careless¬
ness.
All of the tipples are equipped to make
three sizes of coal — lump, egg and slack.
The lump passes over the shaker screens
with perforations four inches wide by
nine inches long, where it meets with
traveling loading boom, which deposits
the coal in the cars with a minimum of
breakage.
As has been intimated, coke has
played a great i)art in the upbuilding of
the business of the Stonega Coke & Coal
Company, and it would scarce be fair to
proceed further without telling something
regarding this product. The ovens are
of the bee-hive type and have a capacity
of between 92;000 and 93,000 tons a
month. Roda coke, which is manufac¬
tured from the coal produced at the Roda
and Keokee mines, is in great demand
Top Cutter at Work at Company’s Mines.
Xo. 25]
THE BEACK DIAMOND.
505
1
H & E
Rear View Showing Transformers in Underground Station.
Interior View at Outside Substation Imboden^ Va.
from companies manufacturing gas and
it is also very attractive to manufacturers
of high-grade iron. It is exceptionally
low in sulphur and ash and contains prac¬
tically no phosphorus. Foundrymen
also are heavy users of this coke and es¬
pecially those at considerable distance
from the ovens, who find freight rates a
consideration. The extreme purity of
the Roda coke leaves a minimum of
freight to be paid on fuel and it com¬
mands a premium price in all markets.
Coke from the Imboden vein has al¬
ways been in demand by both furnace and
foundrymen on account of its low sul¬
phur and excellent structure. This coke,
as is Roda, is loaded entirely free from
braize or ash. On account of its large
lumps, much better service can be had
from it than from the finer cokes. All
of the Stonega Company’s cokes for foun¬
dry consumption are loaded with lump
middles and from six to eight wails to the
car — built of large lumps. This makesj
separation for the foundryman and if he
desires he can lay the larger of the coke
aside for use in the bottom of cupolas.
Its structure is such that it will .su])port
tremendous burdens.
Experts who have pas.'-ed upon the
merits of the coke and coal of the com-
jjany awarded it gold medals at the St.
Louis and Jamestown expositions. Now,
then, a word about the geological forma¬
tion of the coal.
The Stonega Coke & Coal Company's
coal lands, comprising an area of apj)roxi-
mately forty miles, are a part of the Vir¬
ginia coal fields and lie in the southern
edge of the incline between Powell
River on the south and Pine Mountain
on the north. On this property the
strata di]).s about three degrees to the
northwest, with very few local disturl)-
ances. The lowest vein, the ImbcJden,
occurs in practically the whole area and
the other coals occur in a decreasing
area toward the top of the Black Moun¬
tain, where the highest co'al, the High
Splint, has an area of not cpiite two'
sc|uare miles.
The coal beds in this section belong to
the same period as the measures known
as the Pottsville Conglomerate series, or
Xo. 12, in western Pennsylvania. In the
Pennsylvania field these measures carry
four workable seams, namely. Upper
Mercer, Lower Mercer, Ouakertown and
Sharon coals, below which is found the
Potts^■ille Conglomerate ; the total thick¬
ness of the series above the Pottsville
Conglomerate being a maximum of oidy
about three hundred feet.
In this field the series has thickened
greatly, and beginning at bottom shows
intervals as follows : Lee Conglomerate
(corresponding to Pittsville Conglom¬
erate), one thousand feet interval, con¬
sisting of sandstones, shales and small
coal seams, above which comes the Im¬
boden coal seam. Above this seam is
another interval of two hundred feet, and
then we have the seam known locally as
the Wilson seam as mined at Keokee.
I'his seam has been corelated with the
Harlan seam of southeastern Kentucky
and the Rockhouse coal of the Kentucky
River. About two hundred feet above
this seam is the seam known to the coal
trade as Roda. This seam is variously
known as the Taggart, McConnell, Keo¬
kee, Killioka and Darby. After about
one thousand feet interval, we find the
limestone coal, known as such from its
];roximity to a persistent Ijed of fossil
limestone, varying in thickness from one
inch to eighteen inches, and found
throughout this field about fifty feet
al)ove the limestone coal. Three hun¬
dred and scventv-five feet above this is
Undercutting Coal in Stonega Company’s Mines.
Miners Loading Coal From the Roda Mine.
506
THE BLACK DIAMOND
[December 18
Type of Permanent Construction of Stonega Mines.
Approach and Entrance to Arno Mine.
the Cornett coal, and seventy-five feet
above this is the High Splint, the highest
of the coals in this series and occurring
only in the top of the ridges on this prop¬
erty. This makes a series in this prop¬
erty about three thousand feet in thick¬
ness, or ten times the thickness that is
found in the Pittsburgh field.
After considering the geological for¬
mation of the Stonega fields as a whole,
it might be well to turn attention to the
individual history and characteristics of
each of the six mines which are operated
by the company.
The Stonega Mine.
The Stonega mine proper was first
exploited in 1891, and for four years lit¬
tle more than prospecting work was done.
Tn 1895 arrangements were made and a
plant started to convert the coal into
coke, and actual shipments were com¬
menced in 1896. The total producing
capacity of this mine has risen to 60,000
tons a month since that day. The coal
is on the Imboden seam and runs from
six to seven feet in thickness. Main track
haulage is by motors, though mules are
used to gather the coal from the butts.
Inside electrical equipment gives free use
of high-power mining machinery within.
Outside two tipples, fitted with screens,
give free access to the cars on the tracks
below. Sufficient yardage is in connec¬
tion to allow one day’s storage of empties
and loads. Being the first of the coke
ovens located in this field, the Stonega
plant is really the “daddy” of that in¬
dustry in this section. . Here are located
666 bee-hive ovens in which coke can
be made from either run of mine or slack
coal. These have a total production of
35,000 tons a month.
The Osaka Plant.
This opening was first made in 1902,
and is also on the Imboden seam and is
of the same general characteristics as the
Stonega mine, the vein running from six
to seven feet in thickness. The produc¬
tion of coal here is running about 35,000
tons a month. It is also electrically
equipped, with motor haulage in the main
heading. At this plant the company has
400 coke ovens, which can convert run
of mine or slack coal to a capacity of
22,000 tons a month. Here are located
elevating devices for the coking of coal
which has been transported from any
of the other mines of the company.
At the Arno Mines.
Arno is another of the mines of the
company where mule power is used to
gather the coal, but other than this, elec¬
tric equipment is used throughout. High-
powered motors carry out in the neigh¬
borhood of 45,000 tons of coal a month
from the workings back from the two
openings of this mine, which is also on
the Imboden seam. The tipple is
equipped for handling the three standard
grades of coal and the yardage capacity
is sufficient to allow a one-day’s storage
and empty-car supply. This mine was
opened in 1907.
Imboden Plant.
This is one of the plants which was
opened by other than the Stonega Com¬
pany. It was opened by the Imboden
Coal and Coke Company in 1902, and
shipments were first made in 1903. The
plant was taken over by the Keokee Con¬
solidated Coke Company, and in 1910
was acquired by the Stonfega corporation.
The capacity of this mine strikes a ton¬
nage of 45,000 a month and, as its name
indicates, it is on the Imboden seam.
There are storage yards here for a one-
Rotary Dump in Operation at Keokee Tipple.
J
Loading Boom in Operation at Roda Tipple.
No. 251
THE BLACK DIAMOND
507
Loading Stonega Coal on a Ship at the Charleston, S. C., Dock.
■ir ?
'sir' ijS
A Near View of the Mechanism on the Charleston, S. C., Dock.
day supply of cars above and below the
tipple. The company also has 320 coke
ovens located here, which have a pro¬
ducing capacity of 17,000 tons a month.
The Mines at Keokee.
These, with three openings, were ac¬
quired from the Keokee Consolidated
Coke Company in 1910, and here is found
a difference in the viens as mined in the
preceding locations. What is known as
the McConnell vein locally and elsewhere
as the Taggart or Roda seam, as well as
the Wilson seam, is on this property, the
thickness of which varies from five and
a half to six and a half feet. Here the
company has tunneled through the moun¬
tain to the Kentucky side in order to give
natural drainage. Since the plant was
opened in 1907, many improvements have
been made, so that there is now com¬
plete electrical equipment with a produc¬
ing capacity of 45,000 tons of coal a
month. Cutters, motors and lines to all
parts of the mine are served with electric
current.
The Roda Workings.
Last, but by far the least is this mine,
which is the pride of the properties of
the company. The Roda is a generous
producer and puts 80,000 tons a month
at the hand of the consumer. She has
two mine openings, made in 1903. The
character of the coal is of the Taggart
seam and runs uniformly from six to
seven feet. A double tipple arrange¬
ment, both well equipped with latest
types of shaker screens and loading
booms, prepares the three standard
grades of coal shipped from there. Yard¬
age is so arranged that there is always a
day’s supply above and below the tipple.
From the foregoing it can be seen that
the total capacity of the six mines of the
company ranges about 325,000 tons a
month, or well onto four million tons of
coal a year. Some dubious person may
offer a skeptical quiz on the last state¬
ment upon the grounds that twelve
months is a long while to work a group
of mines up to averages or capacity pro¬
duction. It is well to remember that the
records of this company show operation
for years together without the loss of
a working day.
This also brings about a necessary ex¬
planation as to the labor conditions in
their fields and the methods by which the
company is able to assure itself of as
many working days in the year as the
calendar affords. Fifty-fifty, in present-
day slang indicates that a thing is half-
and-half ; then labor in the Stonega terri¬
tory can be considered thirty-thirty-
thirty. That is, one-third is foreign, one-
third is white American and one-third
negroes. “Whether our foreigners go on
a holiday, our ‘niggers’ on a jubilee, or
our whites get drunk, you can see that
we are pretty well assured of two-thirds
of the men turning up on any and all
occasions,” was the facetious explanation
that one of the officials made.
John Fox, Jr., the novelist, lives in
Big Stone Gap, where the general of¬
fices of the company are located and in
many of his word paintings he has faith¬
fully described the natural beauties of
his native heath. Far be it that this
humble writer attempt to improve upon
his excellent work. Suffice it to say that
if rugged, picturesque Mother Earth is
conducive to a man’s contentment, the
miners should have what many a million¬
aire has cut capers with his dollars to
find. ,
Add to this all of the conveniences that
the human craves for and you have the
conditions which obtain in the care of
the employe. Churches of all denomi¬
nations dot the hillsides, distributed by
creed to minister to the particular wants
of the inhabitants. In ministers the range
is from the shouting parson for the col¬
ored folk to his Greek church brother
in the cloth. Motion picture halls, lodge
meeting places, free library, pool rooms,
and even bandstands and parks are the
provisions made to satisfy those who
crave entertainment.
While the company maintains eleven
stores, scattered over their fields, each
located to be of easy access, no attempt
is made at the compulsory commissary
system. Competitors range side by side
with these and the miner always has the
option of dealing where he pleases. Com¬
pany doctors are always at his beck and
call, and centrally located — at Sonega —
is the company hospital, well equipped
for minor and major operations and with
competent nurses in charge. First-aid
work and safety-first instruction have been
one of the lines of uplift into which the
miners have heartily entered, and over
150 men showed their skill in the open
competition which was held in Big Stone
Gap on July 4 of last year. Stonega Com¬
pany teams also made their bid for hon¬
ors in the open state competitions of
Tennessee and Kentucky.
Within the past four years over 200
miles of macadam roadways have been
laid in Wise county. These connect all
of the Stonega Company’s plants. Not
alone is this an attractive feature for the
company, but for the employes as well,
for in this section, as well as elsewhere,
there are numbers of the miners who have
their own autos and enjoy a spin after
working hours.
Lumber for the use of the company,
be it for building a hen-coop or a com¬
missary store, a tenant house or a mine
car, is manufactured at the company’s
mill, which will turn out about 5,000,000
feet a year. A planing mill in connection
dresses all lumber needed in interior
work. It has been said that the company
can build everything about the tenant
houses except the window panes.
Machine shops are located at each
plant, with a large central plant and
foundry at Stonega, where all the heavier
work is done, so that there is no delay in
replacing anything from an intricate
electrical part to a heavy pier of bar iron.
While labor is a cornerstone in assur¬
ance of supply to consumers, and the
foregoing is an attempt to show that there
is plenty of care taken to make living
conditions attractive, yet there is another
thing which the Stonega field excels in —
getting its coal to market. That is the
all-important item of car supply.
Two main lines enter the field, viz :
the Interstate Railway and the Virginia
and Southwestern, which is a subsidiary
of the Southern Railway. For its total
trackage the Interstate has a higher per¬
centage of rolling stock than will be
found elsewhere on independent lines,
and the V. & S. W. is by no means
stinted. Add to this the fact that these
508
THE BLACK 1)IA:\I()XD
initial carriers have shipping connections
with the Southern Railway, the Louis¬
ville and Nashville, the Norfolk and
Western, and the Carolina, Clinchfield
and Ohio, and it will be seen that the
bane of the operating man's existence —
lack of empties — becomes a lly-bite in
comparison with other worries.
d'he tidewater outlet for this coal has
been a source of study for the company's
officials for some years. Through the
energy of the executive officers of the
Southern Railway Company, there has
l)een established pier equipment at
Charleston, S. C., which is to make that
city one of the notalde coaling stations
of the world. With only seven miles to
sea, Charlestown is bound to be a fa¬
vored port of bunkerage for both foreign
and coastwise steamers. Hundreds ot
miles closer to South America and closer
to Spain and the Mediterranean ports,
this presents prospects for exports that
are already being realized upon. A
freight steamer bound from South Amer¬
ican or Culf ports to English Channel
ports will average a day and a half sav¬
ing. and a steamer hound to ^Mediterranean
])orts will average three days saving if
it bunkers at Charleston instead of
bunkering at Norfolk, d'he long estab¬
lished and well known hrm of William
Johnson & Co. is the e.xcltisive bunker
agent of the Stonega Company at
■Charleston. A\dth two of the mine.s —
Keokee and Imboden — on the lines of
the subsidiary of the Southern Railway,
and the other four having direct connec¬
tion with it, coal can be moved to the
shipping port in a week without any
bother, ^^’here fast time has to be made,
even this can be reduced. From the
Stonega fields the freight rate carried for
export coal is $1.40 to Charleston. At
this port the company has tugs and
ocean-going barges to transfer coal to
the ports north or south.
Lambert’s point, the ocean terminal of
the Norfolk and \\’estern Railway, is
the other tidewater shipping point
for the outlet of these coals. The
connection is between that line and the
Interstate Railway at Norton, Va., from
which there is a haul of a little over 100
[December 18
miles to Bluefield, where the main line
of the N. & W. is met. Coal has been
sent to this port in four days, though
six is the average time required for de¬
livery. Stonega export coal at present
takes a freight rate of $1.65 to Lam¬
bert’s point.
Still another source of car supply to
tide is afforded through connection with
the Carolina, Clinchfield and Ohio. From
the terminal of the last named road at
Spartanburg, N. C., it has a traffic ar¬
rangement over the Southern Railway to
Charleston.
The movement south and east, how¬
ever, is not all — not by a jugful. With
a connection with the Louisville and
Nashville at Appalachia, Va., and con¬
nections either at Louisville or Cincin¬
nati, thousands of tons of this coke and
coal moves yearly to radiating points
about Chicago, where the reputation it
has established among by-product oven
plants and blast furnaces and foundries
has placed it in a class by itself.
[This article is styled an advertisement to comply
with the postal laws as revised August 24, 1912.]
A New Basis Proposed for Chicago’s Gas Prices
Early this week officials of the People’s Gas
Light & Coke Company of Chicago proposed to
Mayor Thompson a new basis by which to deter¬
mine the selling price of gas. The new proposal
was in the form of a letter. It follows:
“For many years there has been a succession
of controversies between the city of Chicago
and this company upon the subject of rates to
1)C charged consumers of gas.
"Previous similar controversies between the city
and this company and its predecessors have never
satisfactorily accompli.shed their object, but have
caused much expense both to the city and to the
company concerned.
“It is our desire to bring the pending con¬
troversy to a conclusion, and we believe that this
can be done by negotiations between the city and
the company far more promptly and satisfactorily
than by continued litigation.
“Will you permit us to suggest that you invite
the city council through its proper committee to
confer with the officers of this company, with a
view of determining whether a schedule of rates
can be evolved which will be mutually satisfac¬
tory. If an agreement can be reached it can
then be submitted jointly by the city and the
company to the state public utilities commission
for approval by that body.
“We have in mind proposing a system of rates
graduated along lines heretofore adopted in other
cities which would tend to encourage the use
of gas not only for domestic purposes but also
by local industries, both small and large, and
which, in our opinion, can he adjusted fairly and
reasonably so as to result in reducing from time
to time the selling price of gas through reduc¬
tions in the cost of its manufacture.
“The constantly increasing price of oil, which
is the factor of greatest expense in the manu¬
facture of water gas now supplied by this com¬
pany, must inevitably call for an increase in the
price of gas in the near future, unless the con¬
ditions surrounding its manufacture shall lie so
changed as to enable the company to avoid the
increasing cost.
“Gas in the city of Chicago is now supplied
according to a prescribed standard of ‘candle
power’ — the highest to be found in any large
city in the country. We believe this standard
of quality to he unsound. A change of standard
to a ‘heat unit’ basis would permit the manufac¬
ture of gas without the use of oil, and would
thus place the company in a position to lower the
cost and price of its product.
“For heating and cooking ana for lighting in
burners equipped with mantles the candle power
requirement is wholly useless. A high candle
I)ower is important onlv in gas used in old tyjic
open flame burners. Only a negligible percent¬
age of the gas now consumed in Chicago is used
through these old style burners, and from the
standpoint of efficiency and economy to the con¬
sumers these old burners ought to he entirely
discarded. They are as much out of date and
as wasteful as the old type carbon filament lamp
now is in electric lighting.
“The public utilities commissions of Illinois,
Indiana, Wisconsin, Pennsylvania, Washington,
Oregon, New Hampshire, Missouri, Nevada, and
the District of Columbia, after exhaustive studv
of the question, have adopted the heat unit stand¬
ard. Other states are considering the change and
will doubtless follow their lead.
“If the city is willing to co-operate with the
company by eliminating the unwise high candle
power requirement it will allow the company an
opportunity to erect a coal gas plant on property
heretofore acquired for that purpose, and will
thereby promote the possibility of future greater
reductions in the price of gas. The erection of
such a plant, with the regular extension of the
company’s distribution system, would necessitate
an expenditure by the company of not less than
$14,000,000 within the next three years.
“We invite the careful consideration of the
citv to this subject.”
The letter bears the signature of Samuel Insull,
chairman of the board, and E. G. Cowdery, presi¬
dent ; John J. Mitchell, James A. Patten, and
Stanley Field, constituting the board of directors.
Coaling Importance of Honolulu.
The Inter-Island Steam Navigation Company
at Honolulu are now operating the only com¬
mercial coaling plant in the islands. This plant
was installed by the C. W. Hunt Company and
consists of two steeple towers, one through tower
and cable railway. At the time this plant was in¬
stalled, some seevn years ago, it was considered
adequate for the coal handling requirements of
the islands for the next twenty-five years, hut the
islands have shown to be such a desirable coaling
station for Pacific shipping that at the present
time it is operating practically twenty-four hours
a day to meet the demand for coaling. After the
opening of the Panama Canal, the present facil¬
ities will be entirely inadequate. To meet this
condition of affairs, not to mention the future de¬
velopment of Russia, the Inter-Island Steam &
Navigation Company, always progressive, have
acquired what is known as the Dorsett property,
located right in the harbor of Honolulu, and this
property will be developed as a coaling station.
The final plant contemplates storing over 100,-
0(10 tons of coal, all of which can be reclaimed by
machinery. Before deciding upon the method of
handling this coal, these people made a very thor¬
ough study of the latest and most approved meth¬
ods of efficient handling of this commodity.
C. W. Hunt Company has installed two steeple
towers on Pearl Harbor, Hawaii, for the United
States government, and four steeple towers on the
Atlantic side of the Panama Canal, and two
steeple towers at the Pacific end of the Panama
Canal. These towers are about to be completed,
and the towers purchased by the Inter-Island
Steam & Navigation Company are similar in de¬
sign to these recent towers, though the Inter-
Island’s plant will be electrically operated
throughout, and the plant includes in addition to
steeple towers equipment, elevated bunkers for
reloading to ships. Mechanical reloaders and
movable storing and reclaiming bridge, with elec¬
tric motor cars are used in handling the coal
throughout the plant.
The ultimate plant contemplates arrangements
for loading six vesesls at the same time, with
four towers to be used in unloading at the same
time. This plant will be, when consummated, the
largest on the Pacific Coast, also one of the most
completed modern plants in existence. It will be
a monument to the officers and directors of the
Inter-Island Steam & Navigation Co.
This plant was designed to be efficient and rapid
in reloading, as well as unloading, and can unload
effectively from any vessel with ordinary hatches
(a feature point).
They are now supplying both Japanese and
Australian coals, and in the near future use
American coal.
The Inter-Island Steam & Navigation Company
advise The Black Diamond that they do not an¬
ticipate that the new coaling plant will take away
any considerable business from the Panama Canal
coaling plants, and therefore work to the dis¬
advantage of American coals. They state that,
under most favorable condition, supplies cannot
he landed at their port at a figure low enough
to compete with the canal depots, where ships are
now supplied with bunkers at the rate of $6.00
and $7.00 per ton, which is less than the actual
cost of supplies of Australian and other coal
C. I. F. Honolulu, and to which must be added
the e.xpense of handling same in and out of stor¬
age as well as a reasonable amount of profit.
Vessels are only calling there for the purpose of
replenishing their bunkers and taking only suf¬
ficient to carry them on to the next port of call.
This is a fact that all shipowners are well aware
of and can he verified by inquiry of shipping
firms having vessels calling at that part.
American Coal Values.
The subjoined table taken from the United
States Government reports, just issued, shows the
output and value of American coal for ten years :
— Bituminous — — .Anthracite —
Year —
Quantity.
Calue.
Quantity.
Value.
1 90.9 . . .
..SI.'), 002, 73.1
$.134,059,294
09,339.152
$141,879,000
190(5 . .
..149,874,8(57
381,102,115
63,645,010
131,917,694
1907 . . .
.,194,7.59,112
451,214,842
76,432,421
163,584,056
1908 ...
..132,.57.1,94 4
374,1.15,208
74,347,102
1.58,178,849
1909 ...
..179,744,2.57
405,480,777
72,384,249
149,181,587
1910 ...
.417,111,142
409,281,719
75,433,240
100,275,302
1911 ...
.405,907,059
451,375,819
80,771,488
175,189,392
1912 ...
.450,104,982
517,983,445
75,3.12,855
177,022,620
191,S . . .
.478,4.15,297
505,234,952
81,718,680
195,181,187
1914 ...
.422,703,970
493,309,244
81,090,631
188,181,399
Xo. 25]
509
THE BLACK DIA^IOND.
American Quality of Coal.
(Concluded from page 485.)
100,000,000 tons of coal per year, if there were
a demand. VVe could do this without going
further, at home, than taking up the idle time
of our plants and men. 15y expanding our ex¬
ports to any such volume, our foreign trade
would equal the total export coal business of
England, Belgium and Germany as those rec¬
ords stood before the war. We do not expect
to do any such volume of business, but this
statement indicates what a reserve force we
have behind our offerings.
American Labor Situation.
The one question which remains to be an¬
swered is whether the labor situation here is
such that the mines are as dependable on that
score as it is indicated they are with respect,
to their financial resources, their transporta¬
tion facilities and their abundant productive
capacity. A brief statement of the labor situ¬
ation will clear up that point. Perhaps it will
prove convincing.
The entire field which produces Pocahontas,
New River, and Tug River coal is non-union.
The miners’ organization has not yet estab¬
lished itself there. The same is true, to a cer¬
tain extent, of Maryland and of central Penn¬
sylvania. However, a little more than half
of the mines in the central Pennsylvania field
are under union control. This means that
more than seventy-five per cent of the field
which produces the low volatile coal is free
of lg,bor disturbances such as spring from
union activities.
The mines in the Fairmont field are non¬
union. Those in the Pittsburgh district which
produce a gas coal are unionized. They are
subject to periodical interruptions — not more
often than once every two years, however —
when the wage contract is to be renewed.
This next spring this labor contract will have
to be renewed. These interruptions of min¬
ing seldom last for more than thirty or forty-
five days.
In the big gas coal producing district of
West Virginia only a very small section of
the mining district is under union control.
The great majority of the mines are non¬
union. In eastern Kentucky no labor unions
are recognized. The same is true of the min¬
ing field in southwestern Virginia. Thus not
more than twenty-five per cent of the gas
coal field is under union control, and hence
subject to interruptions of mining due to labor
unrest.
Taking the whole eastern or coal exporting
district into account, only about twenty-five
per cent is under union control. Even though
labor trouble should tie up one-fourth of the
mines, the others, owing to their excess pro¬
ductive capacity, could meet the market re¬
quirements of all the outside world, as far as
American coal is concerned, without one con¬
tractor having to default on a single contract.
Even of the unionized district, there is this
to be said; The union is trying to make itself
national and international in scope. It is go¬
ing about extending its hold on the mining
district according to a well defined plan. It
makes a big demand on one district today and
then, having won its point, leaves that district
until it can bring all other districts up to ap¬
proximately the same level. Thus it scatters
its centers of disturbance, striking in one
place today, and in quite another place a year
hence. It very seldom delivers two blows in
the same place in successive wage periods.
Only at widely scattered intervals — the divi¬
sion in point of time is often ten or twelve
years — is any general disruption of mining
attempted by the miners. Thus, in a broad
way, it may be said that only seldom is the
American coal field subjected to any serious
labor disturbance.
The foreign buyer may, therefore, proceed
with the utmost confidence to place his or¬
ders here. He may know that if he wants a
coal of a good quality the operator who con¬
tracts to supply it can either do so from his
own mines, or if they should be tied up by a
labor disturbance, he can get enough coal to
fill his contract from some nearby producing
field.
Growth of Our Exports.
(Concluded from page 487.)
brought into the Atlantic from the Great Lakes,
and a goodly number of these have been placed
in the export coal trade.
To take care of some of its foreign business.
two modern steamers were built for the Con¬
solidation Coal Company, each of 8,500 tons cargo
capacity, and these have already been placed in
commission between Baltimore and Alexandria,
Egypt. A third .steamer is now being built for
this service.
The Pocahontas Fuel Company interests have
had three steamers built and an order has just
l)een placed for the fourth.
The Clinchfield interests have brought around
two new steamers from the Great Lakes and
placed them in the West Indies trade, and are re¬
building now at New York a British steamer
recently purchased, that they will place under
American registry.
These companies will, no doubt, increase their
coal-carrying fleets as rapidly as they can have
steamers built, or acquire by purchase, steamers
already in commission.
Experts of bituminous coal from principal At¬
lantic ports for sixteen months :
Hampton
Bal.
Phila-
1914—
Roads.
timore.
delphia.
Total.
August .
. 294,180
52,786
55,786
402,635
September . . .
. 432,685
128,178
58,545
619,408
October .
. 196,423
85,1.52
57,049
338,617
November
. 163,550
75,998
58,136
297,674
December ....
. 132,946
50,712
51,037
234,695
1915—
January .
. 117,607
89,779
40,648
248,034
February ....
. 150.417
79,029
32,794
262,240
March .
. 262,687
76,888
48,646
339,575
April .
. 444,239
193,293
60,207
697,739
May .
. 445,917
232,866
107,645
786,428
Tune .
. 608,599
305,917
122,379
1,036,895
July .
. 712,955
258,585
167,321
1,138,861
August .
. 628,995
210,700
154,965
994,720
September . . .
. 603,558
200,926
64,351
868,835
October .
. 441,643
139,562
87,775
669,070
November ....
. 334,643
55,343
73,000
462,606
Total . 9,460,254
The above figures do not include exports from
New York, Charleston and the Gulf ports.
Charleston has only recently begun exporting
coal, while Mobile and New Orleans have been
shipping less than 1,000 tons per month each.
New York will run around 2,000 to 3,000 tons
per month.
Four Dodge Generations.
The accompanying photograph shows four gen¬
erations of the Dodge family of retail coal peo¬
ple in Monroe, Wis. The founder of the business,
to the left, is just retiring. The new candidate,
to the right, is perhaps a trifle too young to be
thinking much of coal retailing so far.
The four generations reading from left to
right are :
A. C. Dodge, born in Barre, Vt., November C,
1834.
C. S. Dodge, born in Fulton, Rock county, Wis.,
July 31, 1861.
Laroy Weatherby Dodge, born in Oakdale,
Neb., September 23, 1888.
Wesley Lamont Dodge, born in Monroe, Wis.,
September 2, 1914.
A. Clarke Dodee started in the coal and lum-
Four Generations of Dodges.
her business in Monroe, in 1865, and is now ac¬
tively in charge of the Dodge Lumber Company.
Charles Sumner Dodge started in business in
Shullsburg, Wis., in 1882, under the firm name of
Dodge & Son. Sold out in 1883, returned to
^lonroe.
The Dodge Lumber Company was incorporated
with A. C. Dodge as president and C. S. Dodge,
secretary, in 1893.
In 1899 C. S. Dodge took charge of the Monroe
Planing Mill Company and later bought out the
pme. In 1913 took his son, Laroy W. Dodge,
in partnership with him and changed the firm
name to C. S. Dodge & Son.
Lackawanna’s New Head.
In appointing Chief Engineer Arthur C. La-
Monte to the position of general manager of the
mining interests of the Delaware. Lackawanna &
Western Company, President W. H. Truesdale
has again recognized long and tried service in the
company’s employ. Mr. LaMonte has been in
continuous service with the company in various
capacities for the last 26 years, and worked his
way from the post of chainman on a surveying
corps.
Mr. LaMonte was born in Ea.st Worchester,
N. Y., and came to Scranton with his parents
when 14 years old. He was educated in the
Scranton schools, graduated from the high school
and then entered the employ of the Lackawanna
Company at the age of 20 years. In 1903 he was
named assistant chief mining engineer. Two
years later, when John F. Snyder retired as
chief engineer, he was advanced to that position.
Coming to the position of chief engineer soon
after the appointment of Colonel R. A. Phillips
as general manager, he was of great aid to the
latter in modernizing the mining plants of the
company, and in all of the moves to improve and
build up the various properties he has been fore¬
most.
It had been generally considered that C. E.
Tobey, general superintendent of the company,
would be advanced to the post of general man¬
ager, so the appointment of Mr. LaMonte came
as a surprise, he being as much surprised as any
one. The fact that he was a practical mining
man, and that neither President Truesdale, Vice-
President E. E. Loomis nor Superintendent
Tobey had practical experience, brought about
the appointment.
Mr. LaMonte is well liked by the thousands of
employes of the company, and stands high in the
city, being a past president of the Engineering
Society of Northeastern Pennsylvania.
Proposed Merchant Marine.
In his annual report to Congress, Secretary of
the Navy Daniels asked an appropriation of $500,-
000,000 covering a five-year upbuilding program
for the navy. It is proposed to spend $100,000,-
OOO annually on various naval constructions.
In his report. Secretary Daniels declares that
one of the great needs of the navy is some pro¬
vision for auxiliaries “properly built and equipped
with trained Americans.’’ He asserts :
"A merchant marine with foreign crews is not
available for American defense. An American
merchant marine, opening new markets, paying
its way in time of peace, ready to be converted
into a powerful, suitable and efficient naval aux¬
iliary in time of war, is a need that cannot be
overestimated.
“The solution for the government is to con¬
struct, from time to time, a sufficient and suitable
auxiliary fleet, proportioned to the needs of the
navy, and to have such auxiliaries operated in
commerce during peace times in such a way as
will preserve them and train the essential naval
reserve men, and while doing this relieve the
'government of the burden of the cost of main¬
tenance through the income or earnings of the
vessels employed in commerce.
“In order to insure the maximum efficiency to
our present fleet in time of war we should need
400 merchant vessels for auxiliaries with a total
of 1,172,000 gross tonnage. It has been estimated
we could draw approximately 800,000 gross ton¬
nage from our present privately owned merchant
marine, but most of these ships would not be suit¬
able for the best service, and there would still
be wanting 400,000 gross tonnage.
“How shall this need be met? Clearly, the
only certain and satisfactory way is for the gov¬
ernment to seize the opportunity of providing the
necessary auxiliaries by constructing ships for
commercial uses so built and manned as to give
the navy its essential requirements.”
510
THE BLACK DIAMOND.
[December 18
FUBIiISHED EVEKT SATUBDAT BT THE
BEACH EIAUOZn} COMPAHT..
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United _ States. _ Foreign subscrip¬
tion price, $6.00_per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH SIAUOHD COMPAHT (INC.)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, December 18, 1915.
INDEX.
Special Articles.
Page
What America Has to Offer in Quality of Coal... - 485
America’s Growth of Exports Measured by Figures. . 487
Spanish Needs and America’s Plans to Supply Them 488
Plans and Personnel of International Corporation. . 489
Progress Toward an Export Coal Organization . 490
The Ships Which Carry Panama Railroad’s Coal... 491
Buys Pacific Mail Ships . 49T
Getting a Fleet to Carry American Coal to Market. . 492
How America and Europe Met on Coal Question.... 494
Production of Peat in 1913 and 1914 . 494
Who Will Supply France With Coal After the War? 495
Vital Statistics of Some of America’s Markets . 497
Why American Coal Sells at Low Mine Prices . 497
Willard, Sutherland & Co . 498
Why Ocean Rates Are High and How to Reduce
Them . 498
Proper Size of Coal for Locomotive Use . 499
Coal Shipping Ports and the Rates Applying . 499
Opening of Panama Canal Permanently to Traffic. . 500
Rates on Bunker Coal for 1916 Are Uncertain . 501
The Offerings of the Stonega Coke & Coal Co . 502
A New Basis Proposed for Chicago Gas Prices . 508
Editorial . 510
News I.ocal to Chicago . 512
J. S. Chipman Dies . 512
Henry Hafer Dies . 512
Lackawanna’s New Head . 512
Paris Coal Scarcity . 513
Pacts Which Determine Our Export Prospects . 513
Market Reports.
General Review and Chicago . 514
Pittsburgh, Detroit and St. Louis . 515
Cincinnati and Omaha . 516
Indianapolis, Denver and Cleveland . 517
New York and Baltimore . 518
Philadelphia and Buffalo . 519
Birmingham and Duluth . 520
Hocking Valley . 27
America’s Record Performance.
There is no disposition among American
business men to boast of what we have done
in the last twelve months in the way of get¬
ting ready for a systematic engagement in
the export trade. We do not boast of what
we have done so far, because every Amer¬
ican appreciates that we are just entering
the woods instead of coming out of it. We
know that we have still much to learn.
Still, we do not depreciate the fact that
in the last twelve months we have made
astounding progress. This we are not un¬
willing to measure in public because we be¬
lieve such a statement as will result will
convince the foreign buyer that we can do
what we promise. In measuring that prog¬
ress we keep always in mind and must ask
our customers also to remember that we
started at practical zero. In the beginning,
even the habits of the buyers were against
us. Surely the habits of our own people
were against our rapid progress so far from
home. Further, we had practically no ma¬
chinery with which to do an off-shore busi¬
ness. In a year this whole record has
changed radically, as a few known facts
will indicate.
When we tried, first, to sell abroad, we
and our customers were alike conscious of a
lack of any credit system ; we had not even
a plan by which we could get credit infor¬
mation. This was embarrassing because
we had to try to make sales while flatly re¬
fusing to consider any terms except cash
in advance at our own ports. We soon saw
that this could not continue, so we built an
ingenous credit system. We, at first, got
in touch with one buyer who could pay cash.
We learned thereby that he was strong
enough to be allowed credit. When we had
investigated and proved this indication cor¬
rect, he became a valuable asset because he
introduced others who also were of suffi¬
cient standing to do business on credit.
We were perfectly safe while proceed¬
ing in this way, because we were dealing
with big business men. They appreciated
that losses due to bad credits must be paid
by those whose credit is good. Therefore,
no man who intended to do business on
credit would introduce another who would
not pay his bills. This would penalize
rather than reward business introductions.
In this ingenious way we put virtually a
community of foreign buyers to work to
build the framework of our growing credit
system. By this means we got an endless
chain of good credit risks abroad. We will
have to elaborate upon that system after
while, but the foundation principle is so
sound we could hardly improve upon it.
We started to sell abroad with exchange
against us. The American dollar was not
known favorably in the foreign markets
even as the obscure coins of small coun¬
tries are not known here. The only com¬
mon meeting place for American dollars
and coins of other countries was in English
pounds sterling into which all money had
to be changed in order to effect its transfer
to New York. We speedily got rid of that
cumbersome method by inserting the local
banks of the buying country in place of
pounds sterling. That is, they look in the
money of their own country and transferred
it into American dollars. This inserted the
foreign bank into our selling system and re¬
lieved both buyer and seller of any need to
study the intricacies of the exchange system.
We started the year without any selling
organization. We soon began to use our
own sales agents who were familiar with
our coal, who were interested in the en¬
largement of our output and in the ex¬
pansion of our market, and who were
financed by us, instead of relying upon for¬
eign selling agencies, familiar with foreign
coals, interested in the expansion of the
market for foreign coals, and in a sense
financed by the producers of those foreign
coals. The instant we adopted the plan of
selling through salaried representatives, we
were led to study the needs of foreign buy¬
ers as those were dictated by their local
customs, the equipment of their plants, and
their arrangements for receiving coal. This
is leading us to think about solidifying our
selling agencies that we may simplify the
cost of gathering this information and that
we may, by uniting the capital of the selling
organizations, erect docks which will give
the kind of service that is required at prin¬
cipal points. This is going to lead us in the
end to the construction of ships fitted nicely
into the requirements of those docks.
As this indicates, we are making tremen¬
dous progress toward getting ocean trans¬
portation for our own coal. The astound¬
ing statement is made that, in a year, Amer¬
ica — if the lake tonnage is included — has
come to occupy second place in the shipping-
world as to boats in service. If we do not,
presently, occupy first place, it will be sur¬
prising. America is now committed to an
expansion of her foreign trade. To assure
that we are planning to loan money on an
elaborate scale to countries where we ex¬
pect to do business. Our financiers, who
are committed to a loan of one-half billion
at least, know that this program cannot be
supported unless we have ships. These
they are already beginning to provide.
Paying the Fiddler.
The foreign coal importer has paid dearly,
since the outbreak of the European war, be¬
cause he had not prepared himself by pro¬
viding docks to unload economically and
handle coal on shore. Before the war, when
freights were cheap, and delay at unloading
ports meant very little, it was all very well,
perhaps, to stumble along with antiquated
and slow systems of discharging. But the
loss of tonnage by destruction and the em¬
ployment of such an enormous amount of
tonnage by the governments has left such
a small merchant fleet that there are not
enough vessels to go around. Thus many
countries which import coal are paying
freight rates that make the cost of the de¬
livered product out of any reasonable pro¬
portion to the cost at the point of produc¬
tion.
In carrying coal the vessels now in use
could easily carry twenty per cent more ton¬
nage than they do, were it possible for them
to be discharged at anything like the rate of
speed customary in America. This twenty
per cent saving in tonnage would naturally
mean a reduction of, like percentage in
freight costs. This, then, measures the
cost of the lack of proper docks at Euro¬
pean ports.
There are other things to consider. For
example, what are the English coals going
to cost after the war? Again, what are
ocean freight rates going to be?
Every one familiar with shipping believes
that as soon as the present rush of grain
and war munitions is over, the tonnage
situation will be much relieved. However,
the European countries, devastated by the
war, are going to rebuild as rapidly as pos¬
sible. To do this, it will be necessary to
import great quantities of raw and finished
materials. Consequently, there will be de¬
mands for tonnage. Moreover, there will
be a disposition on the part of no few coun¬
tries to go a little further toward prepared¬
ness than they have done heretofore. This
will mean that certain countries will have
a lot of work for their merchant ships to
do. There is no promise that merchant
vessels now under requisition to their na¬
tive governments, are to be returned to
commerce.
The United States government is com¬
mitted to a policy of preparedness that
means, for the next five or six years at least,
that our naval and ordnance work will be
carried on. This program will call for
importation of a great deal of raw material.
What this country is proposing and is com¬
mitted to do, will no doubt be followed
closely by the European countries. These
countries will have greater needs to im¬
port ores and other materials than we.
No. 25]
THE BLACK 1>IA31()XD
511
Moreover, it is certain that no longer
will the English tramp steamer roam the
seas in a position to name a rate that will
give it the business, irrespective of what
other vessel owners may ask. Ifngland is
spending $25,000,000 per day as her ])art
of the war. Her subjects have got to ])ay
the enormous debts that this war is piling
up. Her two great big industries, coal and
shipping, cannot evade their part of this
burden. What is this burden going to
mean to them ?
No one dares predict. Some authorities
say that English coal after the war, will not
be mined for within four shillings per ton
of what it cost prior to the war.
And as for shipping. England has lost
many ships. While English ship-owners
today are getting rates that Captain Kidd
would not have thought of asking, one-half
of what they secure, over a normal rate,
is Ijeing taken by the government as a war
or income tax. This tax is not going to l)e
materially reduced when the war is over.
Whether the tax be direct or indirect, the
English coal operator and the English ves¬
sel owner must pay their fair share. This
will mean that, for years to come, there will
be no English vessels offering for time char¬
ter at four shillings per ton, deadweight per
month, as was the case up to August 1,
1914.
Another point, English ship yards will no
longer be able to turn out merchant vessels
as cheaply as was the case before the war.
In fact, they are going to find it hard to
turn out ships as cheaply as Americans were
l)uilding them with high-priced labor and
high-priced materials prior to the war.
Cost of shipbuilding on both sides of the
Atlantic will be equalized. There is a
chance that Americans may, eventually,
build ships just as cheaply, if not cheaper.
They have not, heretofore, gone into ship-
building as an international proposition.
'I'hey have built only for domestic use, for
lake or coastwise service, where navigation
laws have protected owners from foreign
competition. Now, we are building for the
world. As some of biggest men in steel
and banking have gone into the shipbuilding
business, we may look for some develop¬
ments that will make America a shipbuild¬
ing power.
Einally, the war has given English labor
a taste of better wages. England stands,
therefore, committed to paying her 'work¬
men more than she has ever done. This
means that she must secure better prices for
her coal and her shipping, and this in turn
means that the importer of coal must pay
the price, or shop elsewhere.
America’s Factors of Safety.
An American minister of the gospel who
was built in the mold of a statesman, made
the statement, one time, from the pulpit that
the American continent is divided into three
valleys by two mountain ranges. These
mountain ranges are of such height as prac¬
tically to dictate three separate climatic con¬
ditions. These weather conditions make it
extremely unlikely that all three, or indeed,
any two of these districts will be devastated
by the same season of drought or excessive
storm. Therefore, he said that by a pro¬
vidential provision America was always sure
of a crop which would sustain the people
and support its trade. He considered the
mountains, therefore, a factor of safety for
the agricultural districts in the valleys.
W'e have, in America, other factors of
safety which equal those just brought out.
Considered from the point of view of coal
and coal being considered from the point
of view of labor supply, it is apparent that
.America is hardly likely to any such general
interruption of labor supply as that which
recently embarrassed all of Great Britain,
and which is likely, at any time, to em¬
barrass it seriously again. That is, America
has so many miners and these are scattered
over such an enormous territory, a collusion
among them can hardly handicap, to any
serious extent, our production of coal.
Eor one thing American mines which are
today producing close to 600,000,000 tons of
coal per year employ upwards of 750,000
men. ( )nly about fifty per cent of these
are enrolled by the labor union. Thus, even
though all of the union miners should be
called out on a strike, one-half of our mines
are left to supply the requirements. In view
of the fact that, the non-union miners are,
because of over-production, working only
two-thirds time, they could go very far
towards making up any shortage due to a
general suspension of the unionized mines.
However, the 400,000 miners in the union
are scattered in so many dift'erent districts
they can hardly all be called out at any one
time. For example, we have twenty-eight
coal producing states. The miners’ union
has a foot-hold in about twenty of these.
It is extremely unlikely that all the miners
in those twenty states could be called out
at any one time. There would be no pur¬
pose, in reality, in doing so because some
of the districts are not competitive. Fur¬
ther, it would be so expensive to undertake
a general strike of this character, the min¬
ers’ union would very quickly exhaust even
its elaborate resources and would be forced
to sue for peace.
Thus, in the size of our coal business and
in the lack of control of the situation by the
union and in the extent of the territory over
which our mines are spread, we have a
factor of safety as to labor supply, which
must be reassuring to the foreign buyer.
.Also, we have another factor of safety
in the matter of coal supply. Figures com¬
piled by the leading geologists of the world
indicate that the American continent has
something like fifty per cent of the coal
reserve of the world. These figures may,
one of these days, prove to be inaccurate
because we are convinced that the coal re¬
serves in Russia and China have never been
appraised at ' their full value. Even so,
what is known of America’s coal reserve in¬
dicates a deposit running upward of
4,000,000,000 tons. Knowing how easy it
is to open these veins, this, in itself, is a
factor of safety of tremendous importance,
not only to our own people, but to custom¬
ers abroad.
In this same connection we have a sec¬
ondary factor of safety in the extent to
which we have expanded our productive
capacity. As indicated, we are getting out
today, close to 600,000,000 tons of coal per
year. At the same time our mines on the
average are not working much more than
200 days per year. This means that we
are working to about, or a little better, than
two-thirds of our capacity. This indicates
that with ease, and without increasing either
the number of mines, the machinery or the
number of men employed, but by merely
employing them full time, we could increase
our production by 200,000,000 tons per year.
In a word, we could take over the entire
export coal business of England, Belgium
and Germany as it stood before the war,
and still have productive capacity lying idle.
In the way of money resources we also
have a third factor of safety. Our banking-
system is one which doesn’t take account,
alone, of the solid money, including specie
and bullion, but of the conversion of our
natural wealth into a circulating medium.
This is done by a banking process. By this
banking process our weath is transferred
into a bank deposit after which the borrower
is permitted to draw his check against his
deposit.
The facts in that connection are that we
have a national wealth of approximately
$150,000,000,000, while by the banking proc¬
ess mentioned, our deposits or our credit
money have grown to only $20,000,000,000.
We have, therefore, about seven and one-
half times as much wealth which can be
turned into credit money as we have today
in actual credit money. This means to say
that if we cared to do so, we could expand
our business- — and finance it — by something
like six or seven times.
These various factors of safety in Amer¬
ican business tell the foreign buyer that we
can enter upon a most elaborate campaign
of foreign selling with the utmost assur¬
ance.
The Car Storage.
The coal trade has I)een .struggling to
understand the car situation. It has been
apparent that cars are short in the east,
but reasonably plentiful in the west. That
was not easy to explain. If this were attrib¬
utable to any shortage of cars or engines or
both on the railroads, it would seem that it
would find equal expression in both districts.
Starting with the coal car fact in mind,
Mr. Murray, the western editor of the Wall
Street Journal, made an investigation which
resulted in an enlightening conclusion. He
sought all the facts pertaining to the car
situation everywhere. Therefore, he
wanted to know what was the car supply for
the movement of grain, live stock, steel
products, manufactured articles, war muni¬
tions and coal. He discovered that the big
shortage of cars was in places where box
cars are used for the movement, principally,
of foodstuff's and steel products. This re¬
sulted, according to his information, from,
first, an extraordinary movement of those
commodities to tidewater, and second, prin¬
cipally from the shortage of ocean-going ves¬
sels. That is, everybody is trying to ship
stuff’ to Europe. As a consequence, good.'^
are going to tidewater far faster than they
are moving over seas. The result is a very
natural delay of this equipment at tidewater
and consequently a terminal congestion
there.
From this it is very easy to explain why
there is a shortage of cars in the east and
practically none in the west. That is, the
coal cars, going to tidewater, become in¬
volved in the terminal congestion there and
consequently the movement is slowed down.
Thus it takes two cars in the east to do
what would normally be the work of one.
However, the same number of cars moving
to the west avoid any suggestion of terminal
congestion, and, as a result, the supply of
cars in the west is reasonably free. On
these accounts Mr. Murray's investigations
are tremendously important because they e.x-
plain the situation which has puzzled a great
many coal men.
512
THE BLACK DIAMOND
[December 18
News Local to Chicago.
William J. Jackson, receiver, of the Chicago &
Eastern Illinois Railroad, announces that effective
December 15, E. J. Alexander is appointed fuel
agent, with offices at Chicago, Ill., vice C. G. Hall,
resigned to engage in other business.
John S. Reiner of the Reiner Coal Company, at
Fifty-eighth and Robey, Chicago, has organized
the Superior Ice Company with a capital of $100,-
000. The new company is now building an up-to-
date and modern artificial ice plant which will
occupy a space 100x150 feet. The plant will have
a capacity of one hundred tons a day. The officers
are: John S. Reiner, president; J. B. Anderson,
vice-president; August S. Reiner, secretary, and
A. K. Brown, treasurer. The ice company will
be operated in conjunction with the Reiner Coal
Company.
An interesting letter was received last week by
Arthur M. Hull, secretary of the National Coal
Association, from Charles E. Lester, former Im¬
perial Pictor of the Order Ko-Koal and now an
active member of the coal association. Mr.
Lester was, at the time of the writing, in Paris.
He relates in that letter that he ran into lohn D.
Valleaux in Paris and found that he was Ko-Koal
number fifty-one. Mr. Valleaux is a Chicagoan,
formerly selling coal for the Chicago, Wilming¬
ton and Vermillion Coal Company and later for
the Jones & Adams Coal Company.
On Wednesday of this week the reduction in
the rates on steam coal to the former basis by
the railroads went into effect in the western
territory. It will be remembered that the rail¬
roads were given by the Interstate Commerce
Commission the right to increase interstate rates
to certain points in the west about ten cents a
ton. It is recalled that these rates applied into
the northwest without there being a similar appli¬
cation of increased rates from the docks. The
Illinois and Indiana coal operators protested vig¬
orously but at the hearing their protest was
without avail. They subsequently appealed to
the railroads not to check in the advance, es¬
pecially on the steam coal and the railroads
consented to that modification as effective Decem¬
ber 15. All sizes under two inches are included
in the new rate ruling.
Carl Scholz, president of the American Min¬
ing Congress, went to Washington on Wednesday
of this week, where on Thursday he attended a
luncheon given by Van. H. Manning, director of
the U. S. Bureau of Mines to influential men.
At the luncheon were Mr. Ingalls, president of
the Mining & Metallurgical Society of America;
Mr. Saunders, president of the American Insti¬
tute of Mining Engineers; Mr. Scholz, president
of the American Mining Congress, and the mem¬
bers of the Senate and the House who are on
the committee of mines and mining. The matter
immediately under consideration was the revi¬
sion of the mineral land laws, with such changes
as are likely to result therefrom, affecting the
attitude of the Government toward the whole min¬
eral industry.
Some Chicago operators received this week
with some amusement the announcement that the
mine at Gebo, Wyoming, had been closed down.
This mine has had a very interesting experi¬
ence as far as eastern operators are concerned.
It was first opened by private interests but it was
soon discovered that it was developing govern¬
ment coal land. The original owners had therefore
to surrender the mine to the Government. The
Bureau of Mines siezed upon this opportunity to
put into effect some very interesting rules for
the conduct of the mine and insisted that these
rules were very highly practical and would in
no sense hamper the operator of a mine which
was under competitive conditions. The operators
all through the east declared that these rules
were entirely too burdensome and it was im¬
possible, therefore, to continue a mine so oper¬
ated, in active production. The announcement
from Gebo that the mine is closed is taken to
indicate that the eastern operators were right
and the Bureau of Mines’ officials were wrong in
their assumptions touching the supposed innocu¬
ous effects of the Government rules.
N. H. Kendall, commissioner of the Chicago
Coal Merchants’ Association, recently sent a
communication to the members which said:
“It is reported that a committee, representing
the railroads of the country, is now before the
Interstate Commerce Commission requesting
the privilege of amending the national demur¬
rage code. The principal changes sought are
the elimination of the average agreement,
which is so beneficial to shippers and receiv¬
ers of carload freight, and increasing the
demurrage charges from $1.00 per day to a
basis of $1.00 for the first three days, $3.00 for
the next succeeding three days, and thereafter
$5.00 per day. This is a matter that should be
given careful and continued attention. At the
last regular meeting of the Association the
railroad bureau was instructed to file a peti¬
tion with the Interstate Commerce Commis¬
sion, protesting against the advance in rates,
governing Illinois and Indiana coal to the Chi¬
cago territory. Petition was duly filed, and
we are just in receipt of advice from the In¬
terstate Commerce Commission that certain
tariffs have been suspended until April 13,
1916. During the past month two thefts of
coal have been reported to the Association.
One case has been tried. The teamster sell¬
ing the coal is now serving a sentence in
the Bridewell. We were unable to secure a
conviction of the party purchasing the coal.
Everything possible is being done to stamp
out this practice. Members can protect their
interests, to a large extent, by keeping a rec¬
ord of their teamsters, and when one is dis¬
charged for cause, report the matter to this
office, giving full information. We will then
be in a position to furnish other members
with his record when he applies for another
position. It is only a few minutes work to
keep a record of each of your teamsters, and
when they know that it is impossible to
secure work without filling out an application,
giving references, which will be investigated,
the liability of improper actions on their part
is immediately decreased.”
J. S. Chipman Dies.
James S. Chipman died Friday, December 10th,
at his residence, 6925 Perry avenue, Chicago.
He was born in Momence, Ill., and was fifty-
six years old. For over thirty years he had been
connected with the coal trade. First, with the
old anthracite house of Langdon, Harvey &
Richardson ; then with their soft coal mining con¬
nection, the Crescent Coal Company of What
Cheer, Iowa, afterwards for a short while with
the Philadelphia & Reading Coal & Iron Com¬
pany at Milwaukee when under the management
of F. R. Buell. From there he came to Chicago
in 1891, associating himself with Charles L. Der-
J. S. Chipman.
ing in the coal jobbing business and afterwards
going with Mr. Dcring to the S. C. Schenck Com¬
pany with which firm he had been connected ever
since, a period of some eighteen years.
Always of frail physique, he was possessed of
indomintable courage and a happy optimism,
which endeared him to a host of friends. Many
a young man owes his start in life to the sterling
principles which Mr. Chipman so thoroughly and
so happily taught to all who worked with him.
“We are a very sad household,” said one of his
co-workers .“We shall miss his cheery presence
very, very greatly.”
Mr. Chipman was as much beloved and will be
as greatly mourned in his circle of social friends
and acquaintances as he will be with his busi¬
ness associates.
He is survived by his widow, Louise Scully
Chipman, a son and four daughters.
Henry Hafer Dies.
Henry Hafer, one of the veteran coal operators
of America and the head of Henry Hafer & Son
Coal Company, died on Tuesday morning of this
week at his home. No. 4631 Michigan Avenue,
Chicago. He was at his office on Wednesday of
last week, but shortly thereafter contracted a
cold which developed into pneumonia, from which
he passed away.
Henry Hafer.
Mr. Hafer was born December 2'6, 1837 at
Homburg, Germany. This is a watering place
of some prominence in Germany, being made so
because of its natural beauty and its many at¬
tractions.
Mr. Hafer obtained his early education in the
public schools of Germany, but came to America
when he was fourteen years of age. He went
at first to Cleveland, Ohio, where he lived with
friends and worked until a few years later when
he brought his own family over. At that time
Mr. Hafer was apprenticed to the carpenter trade.
He moved to Chicago at the age of seventeen
years and soon thereafter opened a retail grocery
store.
Later, or in 1854, he formed a partnership with
Charles C. Harder as Harder & Hafer for the
purpose of engaging in the retail coal business
handling eastern coals and wood. The firm neces¬
sarily handled eastern coal at that time because
no western coals were then being sold in Chicago
or the western market.
In the early seventies, this retail establishment
branched out into the operating end of the busi¬
ness, opening mines in Sullivan county, Indiana.
A little later Mr. Hafer was interested, with
some others, in the Jackson Hill Coal & Coke
Company of Terre Haute, Indiana.
At the time the Dering Coal Company was
formed, his mines in Sullivan county were sold
out to that organization. At the time of his
death, Mr. Hafer was operating a mine at West
Terre Haute, Indiana, and a mine in William¬
son county, Illinois.
Mr. Hafer was married twice. He leaves three
daughters and one son, eleven grand-children and
five great grand-children living. His first wife
was tlie sister of his former partner, Mr. Harder,
and the second wife, Mrs. Phene Hafer, sur¬
vives him.
The funeral services were held on Thursday
morning of this week at St. Stephen’s church at
Fifty-seventh and Sangamon streets, Chicago.
He had been a deacon of that church for forty
years.
W. B. Whitehorn, who has been purchasing
agent for the Omaha Electric Light & Power
Company during the past seventeen years, has
resigned his position and will enter into the
electrical supply business. Mr. Whitehorn’s
resignation takes effect January 1st, when he
will be succeeded by J. P. Eagan.
No. 25]
THE BLACK DIAMOND
513
Facts Which Determine Our Export Prospects.
Spain’s Coal Needs.
Total consumption of Spain for all classes of
coal is given at eight million toneladas (Tonelada
equals 2,204 lbs. — Consul), of which one million
is consumed in the district of Cataluna, princi¬
pally in Barcelona. Receipts at Barcelona, for
the year 1914, were of foreign, 867,914 toneladas
and of domestic, 201,812. Total production of
domestic for year 1912 was 3,663,621 toneladas,
valued at Pesetas 51,011,455 (Equal to $9,847,771
U. S. currency. — Consul). This has been slightly
increased in the past three years.
The possibilities of increasing domestic produc¬
tion are hampered by large capitalization re¬
quired, labor troubles and shortage of experi¬
enced miners. Estimated that an increase of 4
million toneladas annually would cover present
necessities, which the rich fields of Asturias,
Leon, Ciudad Real, Teruel, Cordoba and Cataluna
could easily supply with proper development.
Suggests government aid in meeting the neces¬
sities of capitalization and transportation (the
latter by means of special rail rates,_ any loss to
the roads to be made good by subsidy) ; an in¬
crease of import duties and the establishment of
a body of competent miners by means of train¬
ing facilities, exemption from lilitary service and
the granting of old age or disability pensions.
Santos Brazil Coal Trade.
The American Consul at Santos, Brazil, writes
The Black Diamond under date of November 9,
1915, about the coal situation there as follows:
“The importation of coal through the port of
Santos, Brail, has been reduced about 80 or 90
per cent by reason of the war.
“In normal times, the importation of ' coal
through this port was some three chartered ves¬
sels a month; at present there is about one such
vessel each two months. Practically^ all of the
coal received both then and now is for one
English firm, Wilson Sons & Co.
“This firm supplied the local demands, princi¬
pally, that of bunker coal for ships in this port,
and it has a branch in Sao Paulo, through which
the many industrial plants of that section, the
railroads, etc., were supplied. The _ first and
smaller business, that of supplying ships in this
port has not fallen off, as vessels find equal diffi¬
culties in securing coal and equally high prices in
the neighboring South American ports. The prin¬
cipal decrease is that due to decreased consump¬
tion by industrial plants and railways. For such
purposes the use of wood fuel is displacing coal
in very many cases, the cause being that of the
inordinately high prices of the coal delivered to
this port.
“The present price here for English coal is ap¬
proximately $20.00 U. S. currency, per metric
ton, American coal is approximately $18.50. The
freight rates have been ranging at about $10.00
per ton from England and show tendencies to a
further rise. The normal price of coal here was
about $15.00 per ton.
"General business in this city and section have
recovered to more than appreciable extent and
the immediate business prospects are very good.
One of the remaining effects of the war still felt
here is that new work or construction involving
heavy outlays are not projected for the present.
“No improvements of importance have been
made in the past year to the extensive and ade¬
quate docks and discharging equipment of the
port.”
Foreign Freight Rates.
W. W. Battie & Co., Produce Exchange, New
York, reports as follows, under date of Decem¬
ber 13 :
I'reight market conditions are practically un-
clianged. Since our last report the Greek steamer
"Platea,” about 5,000 tons coal capacity, Decem¬
ber loading, was chartered from Virginia to a
lower Plate port at 52s 6d, with 500 tons per day
discharge at Is 3d, aiid we have another boat of¬
fered on these terms. There is an active demand
for steamers for Cuban and West Indian ports,
and we have recently closed a number of boats
on terms quoted below. The only coal that we
are moving for Mediterranean ports is on steam¬
ers that we are chartering on time charter. About
95s is now offered on grain to the west coast
of Italy, and vessel owners seem to prefer grain
to coal on the same basis of freight.
We would quote freight rates on coal by
steamer as follows:
West coast of Italy, 90s to 100s. Marseilles, 85s to
95s. Barcelona or other good Spanish port, 85s to 95s;
Spanish daes for account^ of cargo. Note: Charters
for Italy, France and Spain read: ‘‘Lay days to com¬
mence on steamer’s arrival at or off port or discharge
Is per net register ton per day demurrage.” Monte¬
video, 52s 6d to 55s; 500 discharge. Buenos Aires or
La Plata, 52s 6d to 55s; 500 charge. Rosario, 55s to
60s. Rio de Janeiro, 60s to 52s 6d; 600 discharge. San¬
tos, 50s to 55s; consignees paying docas dues. Val¬
paraiso or Callao, $12 to $13; Havana, $3 to $3.25;
Cardenas or Sagua, $3.50 to $4; Cienfuegos, $3.75 to
$4; Port of Spain, Trinidad, $4.75 to $5; St. Lucia,
.$4.75 to $5; St. Thomas, $4.25 to $4.50; Barbados, $4.75
to $5; Kingston, about $4.25; Curacao, about $4.50 and
p. c. ; Santiago, $4 to $4.25; Guantanamo, $4 to $4.25;
Demerara, $6,50 to $7; Bermuda, $4 to $4.25; Vera Cruz,
$5.50 to $6; Tampico, $5.50 to $6.
U. S. Coke Exports.
Exports of coke from
three years, ending June
Country —
Europe:
Austria-Hungary .
Belgium .
Denmark .
France .
Germany .
Italy .
Netherlands .
Norway .
Russia in Europe .
Spain .
United Kingdom:
England .
Scotland .
North America:
Bermuda .
British Honduras .
Canada .
Central American States:
Costa Rica .
Guatemala .
Honduras .
Nicaragua .
Panama .
Salvador .
Mexico .
Miquelon, Langley, etc .
Newfoundland and Labrador.
West Indies, British:
Barbados .
Jamaica .
Trinidad and Tobago .
Other British .
Cuba .
Danish .
Dutch .
French .
Haiti .
Santo
the United States for
30th, respectively :
1912. 1913. 1914.
1,827 1,889
450 .
20 .
15,909 20,869
50 13
720
3,290 4,144
. 95
45 .
4,083 4,954
800 .
14,759
’ i',6oo
1,027
3,041
5,955
6 .
6 25 6
551,025 675,724 543,764
58
53
2
22
1,708
44
222
137
2
1,599
29
219,240 179,399
41
53
2
6,194
1
16
208
188
86
20
41
1,079
27
162,937
4
31
42
44
8,901
124
24
Domingo . . . .
South America:
Argentina .
Brazil .
Chile . .
Colombia .
Ecuador .
Venezuela .
Asia:
Japan .
Oceania:
Philippine Islands. .
18
5
9
56
189
184
5
10
25
2,384
24
46
251
40
7,177
1
9
100
54
’ 38
iio
150
Total
Europe .
North America.
South America.
Asia .
Oceania .
. 805,819
RECAPITULATION.
. 26,474
. 778,681
. 413
900,672 742,476
251
31,964
866,214
2,454
’ 40
26,502
715,617
207
1.50
Coal Through Panama Canal.
The following table showing the shipments of
coal through the Panama Canal in 1914 has been
compiled from the Canal Record, the official
publication of the Panama Canal. The canal was
opened for shipping in August, 1914, and the
first cargo of coal recorded was from Norfolk
to San Francisco, passing through the canal on
September 27. The total quantity in 1914 was
small, 100,503 long tons, and the individual
cargoes, their source and destination, are given.
This does nto include coal shipped to the Canal
Zone for bunker trade. All of the shipments
were from the Atlantic to the Pacific Ocean, and
more than one-half of the coal was from Europe.
COAL SHIPPED THROUGH THE PANAMA CANAL
IN 1914, LONG TONS.
Date/ From— To— Shipment.
Sept. 27. . .Norfolk . San Francisco.... 8,340
Sept. 28. . .Norfolk . Valparaiso . 6,010
Oct. 1 . Baltimore . San Diego . 6,000
Oct. 2 . Norfolk . Guaymas, Mex. . . 5,943
Oct. 3 . Norfolk . 4,252
..Glasgow . San Francisco.... 6,499
..Newport, England. .. Esquimault . 4,659
..Cardiff . Esquimault . 4,550
..New York . Seattle . 3,995
..Cardiff . .Balboa* . 5,150
..Newport, Wales . Balboa* . 4,200
..Cardiff . Miollendo . 2,000
Oct. 19. .
Oct. 19. .
Oct. 22. .
Nov. 1 . .
Nov. 2 . .
Nov. 2. .
Nov. 8. .
Nov. 18.
Nov. 21 .
Nov. 30.
Nov. 30.
Dec. 2. .
Dec. 9
. Ecuador-Chile . New York..
.Spain . Valparaiso ....
.Cardiff . Pacific Ocean..
.Newport, England. . .Pacific Ocean.,
. Baltimore . San Pedro .
. . Barry . For sea .
Dec! 11 . . . .Cardiff . Sealed orders. ,
Dec. 12 _ Cardiff . Sealed orders.,
7,000
4,006
4,221
4,878
1,700
5,000
5.600
6.600
Total . . . 100,503
’’For orders.
Exports to Europe.
Exports of bituminous coal from the United
States to the principal countries across the At¬
lantic for the first eleven months of 1915, were
approximately as follows :
Portugal
Spain . .
Fiance .
Greece .
Egypt . .
Morocco
Hclland
Sweden
Gibraltar
Italy . . .
Denmark
England
Norway
Tons.
20,448
192,950
203,148
65,334
137,903
6,458
25,915
229,434
21,765
2,757,540
2,677
1,479
52,527
Total
3,707,578
South American Exports.
Exports of bituminous coal from the United
States to the principal South American countries
during the first eleven months of 1915, were as
follows :
Country — •
Chile .
Peru .
Argentine .
Uruguay . .
Brazil .
Venezuela
Ecuador . . .
Tonnage.
55,443
11,631
765,278
145,403
605,077
15,114
7,044
Total
1,604,990
Paris Coal Scarcity.
A cable to the New York Times from Paris on
December 9th reads :
“The press campaign against the lack of com¬
mercial transportation facilities has had the effect
of disturbing the official departments concerned.
The parliamentary committees dealing with trans¬
portation have also tackled the question and have
heard expert evidence from business men, rail-
waymen, and others.
“Marcel Sembat, the Minister of Public Works,
today informs Le Journal, the articles in which
paper have been chiefly responsible for the ven¬
tilation of the trouble, that most active measures
are being taken to provide facilities, by means of
railroad cooperation for the re-delivery of empty
trucks and by a supply of labor to the barge com¬
panies.
“The authorities further contemplate an ela¬
borate scheme to reduce and standardize the price
of coal by the establishment of a government
monopoly, with a fixed price based on the differ¬
ence between the average pit-head price at French
mines and the price of foreign coal delivered at
French ports. The proposed law covering the
scheme has been published, but is not likely to
be passed without a struggle.
“Some idea of the difficulty the government is
facing may be obtained from the fact that when a
recent meeting of the Public Works Committee,
M. Sembat stated that he reckoned the price of
a certain kind of coal delivered at French ports at
63 francs ($12.60) per ton, one of the largest coal
importers, called an expert, staggered the Minister
by first offering to sell him half a million tons of
that quality at 60 francs, delivered at any part,
following with the explanation that he was under
contract to supply 200,000 tons of that coal to the
Creusot works at 50 francs per ton, and adding :
‘Even then I make ten francs per ton profit, de¬
spite the freight from the western port to the
Creusot works.’
“The same merchant bluntly declared that the
government figures were hopelessly increased by
the custom of paying commissions to interme¬
diaries. The committee then postponed the dis¬
cussion of the project until February.
“The government’s kindred scheme to reduce
prices by the acquisition of a fleet of fifty freight¬
ers has met with equally sharp criticism from ex¬
perts. They point out that as freights are high
owing to the excess of the demand for tonnage
over the supply, it is hardly possible to remedy
things by increasing the demand. Experts assert
that it is impossible to buy, built, or hire ships
at any figure which would not involve enormous
loss.”
W. H. Donner, who with others has just bought
the plant of the New York State Steel Company
here, will improve it by spending about $3,500,000.
New docks will he built on the Buffalo river and
a by-products coke plant and blast furnace put
up. Mr. Donner prophecies that Buffalo is the
coming steel center of the country as well as the
chief grain and milling headquarters.
514
[December 18
THE BLACK DIAMOND.
General Review.
Weather Is a Dominant Influence, While
the Interruption of Transportation
Helps to Strengthen Prices.
The coal trade for this week is back to its
old familiar position where the weather is the
dominant influence in everything. This is
something of a novelty, because, for the last
six months, the coal trade has been ruled first
by the war, second by business expansion,
third by car shortage, fourth by a fear of la¬
bor interruptions, and fifth by the activities of
the lake season. In all these things there was
no suggestion of the influence of the most
vital force of them all, the weather, because
that heretofore has not been of a character to
influence the trade favorably. This last week,
however, the weather reinstated itself as the
dominant force, this came about by a blizzard
in the east, which brought temperatures down
close to zero, and which interrupted transpor¬
tation. It is hard to tell which had the most
efifect upon better demand and prices — the
droi) in temperatures, or the interruption of
transportation. It is true that the cold
weather served to intensify greatly the con¬
gestion of terminals and the shortage of cars
which has bothered the east all fall. It intro¬
duced also a new element, which was an abso¬
lute shortage of coal, whereas heretofore
there has been only inconvenience or delay in
getting supply.
The interruption of transportation was quite
serious. One report says that even the mails
were twenty-eight hours behind schedule time
and this means that in many directions the
shipment of coal was actually suspended.
The influence of the weather on the west¬
ern trade was not quite so serious. There
the temperature dropped down close to zero.
This increased the consumption hy house¬
holders and enlarged the buying by retailers.
The latter entered this period with no large
supply and consequently had to replenish.
This, of course, brought a good sized demand
upon the producers and it seemed that it would
improve the price materially. However, prior
to that time, the operators had been accumu¬
lating unsold coal at the mines in consider¬
able quantity, the aggregate being several
thousand cars. The extraordinary demand
brought only enough orders to about clean
up the coal on track and did not call upon
the mines to increase production to any ex¬
tent. In fact, it will take a week or ten days
of severe weather to compel the western mines
to increase their production. It will take
much more severe weather than we have had
so far to bring anything like a serious inter¬
ruption of transportation, as cars in the west
are free.
In the meanwhile the forces which have
been working to make the market strong are
still in operation. There would be a good
demand for export coal if we could get the
ships to move it. There is a good demand for
coal for bunkering purposes on ships which
are carrying war munitions and foodstuffs.
This is increasing our off-shore business.
.•\lso in the east the terminal congestion is
still serious, and this brings about a shortage
of cars. In the east also the manufacturing
programs are constantly expanding, due to
good business, both at home and abroad,
and this means an increasing demand for coal.
In the central district the lake season has
come to a close and this releases for nearby
consumption the product of the mines, and it
also releases cars which have been engaging
in the lake trade. However, reports from
Pittsburgh indicate that home demand has
expanded enough to absorb the lake tonnage
without difficulty. In a word, the mines which
normally close down at the expiration of the
lake season are still running to capacity.
The possible Influence of this situation
upon prices also causes the student of the
trade to pause. In the east, so the report
goes, the immediate influence of the severe
weather was to advance prices to almost un¬
precedented figures. Bituminous coal for
steam making purposes has sold in Philadel¬
phia within the week at $3.00 a ton. In the
eastern markets some of the buyers are hold¬
ing for $3.00 while prices ranging between
$2.50 and $3.00 at the mines are being asked.
This means simply that the coming short¬
age of coal is going to dictate really runa¬
way prices if the situation in the east is any
criterion.
The situation is not relieved either when
it is realized that supplying this rush demands
must come at the same time that America
begins to get together enough storage coal to
tide- the business over the period of mine sus¬
pension which is expected on the first of April.
It would be bad enough to go into a severe
winter with no more coal than we have in
storage but it is even worse to contemplate
that alongside the need to create storage
piles of coal.
Chicago Market.
A Touch of Cold Weather Cleans Up
Accumulations of Domestic Coal —
Screenings Are Strong.
Office of The Black Diamond,
Chicago, December 16.
The coal market this week is in a very much
better position. The western coal market is in
a good position this week because of a touch
of cold weather. The benefit of heavier con¬
sumption by the householders and consequently
heavier buying by retailers, was felt mostly by
the operators of Indiana and Illinois. At those
mines there had been considerable accumulation
of unsold coal at the mines and it was a ques¬
tion how this was going to be moved without
breaking the market. The touch of cold weather
came along making an extraordinary demand
for the prepared sizes and this cleaned up the
accumulation nicely without compelling the oper¬
ators to increase output. As a consequence, the
domestic sizes became stronger without doing
any damage to screenings prices which on the
contrary have risen five cents a ton in price as
the result of the gain of demand over produc¬
tion.
The market on eastern coals is very much
stronger, first by the better demand from re¬
tailers in the west and second, by the fact that
a severe storm in the east so tied up railroad
transportation as to interfere even with the
mails to say nothing of the slowing down of
passenger trains and freight. Whatever of an
accumulation of eastern coal there had been was
quickly cleaned tip by the better buying of re¬
tailers and because fresh supplies were not com¬
ing through rapidly prices rose to some extent.
Everything considered, the market is in first-
class position.
The operators in Franklin county, Illinois, had
been producing lump coal, for which there was
no active demand in order to supply the screen¬
ings and other steam sizes for which there was a
good demand. In consequence, there was quite
an accumulation the latter part of last week of
prepared sizes at the mines. Some estimates
show that this ran as high as 1,200 cars. On
Tuesday thefe_ was an election which caused
most of the mines in that county to close down
and for the first part of the week there was a
very much better demand. As the result of
the two things the accumulations had been
cleaned up to the extent of about 700 to 800
cars, leaving only a normal amount of 400 to
500 cars on hand. The better demand without
any increase of production will soon take care
of that and as a consequence the market is quite
strong. Screenings in the meantime are firmer,
prices raaging about five cents a ton, the quota¬
tion being eighty to eighty-five cents.
F. O. B. F. O. B.
Franklin County — Chicago. Mines.
Lump . 12.30 $1.75
Egg . 2.36 1.75
No. 1 nut . 2.80 1.75
No. 2 nut . 2.65 1.50
Mine run . 2.15(32.20 1.10@1.15
2-inch screenings . 1.85(gl.00 .80(g .85
Williamson county operators had a very small
accumulation of coal, the no-bills amounting to
not more than 500 cars. The closing down of
the mines for election and the heavier orders
from retailers removed this accumulation com¬
pletely and the market is technically and actu¬
ally strong. Those who had been holding for
$1.75 a ton are firm at that figure and those who
have been holding for $1.60 are inclined to ask
higher prices. Fine coal is quite strong.
F. O. B. F. O. B.
Williamson County — Chicago. Mines.
Lump . $2.65(92.80 $1.60(91.75
Egg . 2.65@2.80 1.60@1.75
No. 1 washed . 2.80 1.75
No. 2 washed . 2.45 1.40
Saline county operators are still struggling
with the tendency to over-produce, but the better
demand relieved them to some extent. As a
consequence, the immediate price is now $1.60
instead of $1.50 as it was a week ago and some
operators are holding for $1.75. Fine coal prices
are firrner, ranging from eighty to eighty-five
cents with emphasis on the latter figure.
F. O. B.
Saline County — Chicago.
Lump . $2.55(32.80
Mine run . 2.20
Screenings . 1.85(31.90
lli-inch lump . 2.35
F. O. B.
Mines.
$1.50@1.75
1.15
.80(9 .35
1.30
The better demand for lump coal strengthened
the central Illinois situation a little, but some
of the operators down there are still feeling
the effect of too elaborate production. Lump
and egg have not sold at as low fi.gures as they
were a week ago, but they have ben sold enough
at circular as to make that of little importance.
The Sangamon county operators are holding
firmly for the circular price of $1.75, but are noT
doing a great volume of domestic business, their
coals are going to the railroads mostly for stor¬
age purposes. The screenings has a little stronger
range from seventy to seventy-five cents.
F. O. B. F. O. B.
Central Illinois —
Lump .
.
Nut . .
Mine run .
Screenings .
Chicago.
$2.32@2.57
, 2.32@2.47
2.47
1.87
1.52
Mines.
$1.25@1.75
1.50(31.65
1.65
1.05
.70
The Clinton, Indiana, situation is hardly dif¬
ferent than last week. There is a good demand
for domestic sizes in Indiana and fine coal has
an upward tendency.
Clinton —
F. O. B.
Chicago.
F. O. B.
Mines.
No.
4 domestic lump .
. $2.42(92.57
$1.65@1.75
No.
4 egg .
1.50
Nut
1.35
No.
5 and 6 mine run .
1.10
No.
5 and 6 screenings .
. 1.62
.85
Knox county operators have diversified their
business a little this week by adding a line of
domestic orders to their already heavy steam
business and the market all told is quite firm.
Knox County — -
Lump .
Egg . '. .
Mine run .
Screenings .
F. p. B.
Chicago.
$2.37
2.37
1.87
1.72
F. O. B.
Mines.
$1.50
1.50
1.05
.85
Cold weather and the interruption of trans-
liortation between here and the mines served to
clean up any suggestion of an accumulation of
anthracite coal and as a consequence prices are
quite firm. As a matter of fact the retailers
who had not stored much coal began ordering
quite freely by telephone and telegraph, the first
of this week, but the wholesalers were in no
position to respond quickly, their shipments be¬
ing interfered with from the mines by the tie-
up of eastern transportation. There was enou.gh
coal available for movement from the docks,
however, to relieve any distress of the retailers.
Smokeless coal benefited most by the interrup¬
tion of transporttion from the east. The car
supply had been entirely too free there hereto¬
fore and this resulted in a situation which was
somewhat discoura.ging. As recently reported,
prices had broken both on lump and egg at
mine run. However, when cold weather in the
west brought a better demand and when the
railroads were tied up, the_ market righted itself
quickly. The circular price on mine run of
$1.40 has been maintained. Lump and egg be¬
came firm at the new circular price established
a short time ago.
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.30(93.45 $1.25(91.40
Lump and egg . 3.90@4.05 1.85@2.00
F. O. B. F. O. B.
Somerset County — • Chicago. Mines.
Mine run . $3.45 $1.40
Lump and egg . 3.80 1.75
Hocking coal has been firm in this territory
for the last week at $1.75, shipments being rela¬
tively small.
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.25(93.40 $1.60@1.75
Splint coal in demand, both east and west, has
been firm at prices heretofore quoted.
F. O. B. F. O. B.
Kanawha — Chicago. Mines,
lid-inch lump . $3.40@3.50 $1.50(91.60
Eastern Kentucky coal was helped out by the
cold weather of the last week and modified to
some extent the spread of prices on coal as
previously reported. The. minimum it seems
has moved about ten cents a ton.
F. p. B. F. O. B.
Eastern Kentucky — Chicago. Mines.
Domestic lump . $3.55(94.30 $1.65(32.40
Egg . 3.40@3.90 1.50@2.00
The coke market is firm in all departments
with gas house coke moving up twenty-five cents
a ton to $4.25.
F. O. B.
Coke— Chicago.
Connellsville . $5.25@5.50
By-product, foundry . 5.25(3 6.50
By-product, egg and stove . 4.75(94.95
By-product, nut . 4.75@4.95
Gas house . 4.00
No. 25]
THE BLACK DIAMOND
515
Pittsburgh Trade.
Despite the Closing of Lake Naviga¬
tion Demand for Coal Is Strong
Enough to Absorb Output.
Office of Tue 15l.\ck Diamond,
3 503 Oliver Building,
Pittsburgh, December 10.
The coal men that predicted a dull December,
a lull after shipping ceased, and similar condi¬
tions, has no standing in the trade today.
Coal, to say the least, if not experiencing a
boom, and a very decided one at that, is certainly
seeing what can only be termed a skyward mar¬
ket, and no man will quote you anything but
twelve hour prices, not knowing what a daj' nor
an hour may bring forth, e.xcepting that it don’t
bring forth a car supply.
Transportation conditions, export trade, and
the consequent increased demand for Pennsyl¬
vania coal east, has created a situation that has
led up to a condition where if a man has any free
coal he can practically get whatever he wants for
it if he can give car numbers. This condition de¬
veloped in the eastern part of the state some
weeks ago, and in spite of freight rates has
worked its way from the Clearfield district west¬
ward to the Latrobe-Greensburgh section, and on
through the Westmoreland, and the Youghiogheny
zone until today the whole Pittsburgh circle is in
the throes of a condition that, as stated, cannot
be quoted twelve hours ahead. Pittsburgh oper¬
ators in the Latrobe district are getting $3.2.j
gross at mines, and sales of Westmoreland gas
coal are reported at from $2.13 to $2.25, and
eastern buyers are offering $1.75 for Pittsburgh
coal where car numbers can be given. One large
operator stated today that he was quoting $2.00
for delivery over the next two weeks, and would
quote no less — as he felt very certain the prices
would be higher before January 1st, notwithstand¬
ing Pittsburgh freight rates east. The market
is altogether east, no western demand appearing.
telephone inquiry yesterday from No. 8 dis¬
trict (Ohio) offered mine run for eastern ship¬
ment as low as 95 cents, but rates practically ex¬
clude that section from Eastern markets.
The New River and Pocahontas region are also
reported as practically out of the eastern mar¬
ket, owing to a lack of vessel capacity as well
as the scarcity of cars, and $2.00 per gross ton is
being quoted there, where any shipments can be
made. Slack seems to be an impossibility — as long
as the above prices maintain on mine run. Pan
Handle eoal sold at $1.35 the fore part of the
week and $1.05 to $1.10 for slack was offered, but
none to be had. It doesn’t seem to make much
difference what kind of coal it is, the market east
is just the same.
Railroads, traction companies and manufactur¬
ing plants are stocking coal in anticipation of
further advances, and from present indications
in the iron and steel trades there is little pros¬
pect of the demand shrinking. Some apprehen-
tion is felt here and there regarding developments
.'kpril 1st, but optimists seem to think that with
market conditions maintaining as at present there
will be little or no trouble regarding new scale
jirices.
W’herever it is possible to obtain labor, addi¬
tional capacity is being operated, and new work¬
ings are getting into the market.
The Delmont Gas Coal Company of Delmont,
Pa., load their first car today, and are now in
shaiie to continue shipments, entering the market
at a very opportune time.
Considerable snow over the watersheds of the
three rivers here raised the hopes of river coal
operators for a coal barge stage — but the weather
forecaster holds out no encouragement, as a de¬
cided fall in the temperature will prevent any
raise in the rivers and any shipments south by
water. The same weather conditions tend to iin-
nrove domestic trade.
' i.rnnrc coke has been doing some queer stunts
for some time past and capped its slump of a few
weeks ago by jumping to $3.00 and $3.35 this
week. Furnace interests anticipating more than
the usual shortage in spot coke during the holi¬
days came in for whatever was to be had and
prices soared very unexpectedly. The situation of
output and consumption has been so evenly bal¬
anced that no coke has accumulated, and sales
were made at the figures above quoted at Union-
town during the past few days. This condition
is likely to obtain until after the turn of the
year and $4.00 or $5.00 furnace coke may be seen
at any time, as predicted by various operators.
The pig iron market looks like $20.00 a little
ways off, and the sliding scale contracts evidently
influence the spot coke market. Foundry grades
hold firmly at $3.25 to $3.75 with an upward
tendency that looks good to the producer.
Pittsburgh News Items.
.\braham Overholt Tinstman, aged eighty-one,
who was largely instrumental in starting H. C.
Frick in business and was probably one of the
oldest coke manufacturers in Pennsylvania, died
of pneumonia at his home. Sycamore and Grant
streets. Turtle Creek, at 7 o’clock p. m. the 14th
instant.
Preparations are going on for the blowing in
about January 15 of two blast furnaces of the
Carnegie Steel Company. They are the Neville
furnace on Neville Island, which has not been in
operation for eight years, and the Edith furnace
in Woods Run, which has not been worked for
si.x years. These two furnaces with several others
are on the reserve list of the Carnegie Steel Com¬
pany and are only fired in case of emergency.
Detroit Trade.
Detroit, IMich., December IG. — {Special Corre¬
spondence.) — Continued strength is the most con¬
spicuous and gratifying feature of the Detroit
market. 1 liougii sales of coal are not especially
large, orders are being placed with a good de¬
gree of regularity and shippers are hopeful this
situation will continue well through the winter.
While this is more particularly applicable to
the steam coal trade, the same conditions are a
feature of the domestic coal trade, in which the
activity is less. The continuance of seasonable
weather and low temperatures is expected, how¬
ever, to do much to bolster up the domestic busi¬
ness before spring. Buyers who have been hold¬
ing back are coming into the market in increasing
number and shippers are counting on an even
more general willingness to take coal if the
weather does not suddenly moderate.
In the steam coal branch of the business small
sizes are still holding the lead in demand, which
is causing strenuous effort on the part of some
shippers to get stock through on time. All sizes
are meeting with rather a ready sale, however.
Though the closing of the season of navigation
on the lakes was expected to bring quite a sub¬
stantial increase in the amount of consignment
stock shipped into Detroit, the apprehension of
certain shippers in this respect is only partly borne
out by the developments. The increase in quan¬
tity of such coal has not been so great as to make
it a very material factor in the situation, and such
coal as is arriving seems to find buyers willing to
receive it in reasonable time. It cannot be said,
of course, that schedule prices are obtained on all
this stock, but the proportion on which any im¬
portant reduction is made is so small as not to
have exerted any noticeable effect on general
conditions.
Stove and egg sizes in anthracite are some¬
what sluggish, with light demand. Chestnut is
finding a steady market with demand slightly
more active than the supply, the result being that
in a number of recent sales, a premium of 15 to 25
cents a ton was paid shippers to obtain stock
siieedily. In some instances shippers are being
required to take the larger sizes of anthracite to
obtain chestnut in sufficient quantity for their
requirements.
The transportation situation is very much im¬
proved locally, in contrast with 10 days ago, but
traces of congestion are still apparent in suf¬
ficiently impressive form to cause anxiety to some
of the shippers who are delayed in getting stock
delivered promptly. Car shortage conditions re¬
ported from mining districts in both hard and
soft coal fields give no indication of improvement.
Brices on mine shiiimcnt orders are:
West Virginia
Gas —
F. 0. B.
Mines.
F. 0. B.
Detroit.
Three-quarter lump .
Mine run .
$1.10
... .90@1.00
. . . .75@ .90
$2.50
2.30@2.40
3.15@3.40
West Virginia
Splint —
I‘'our-inch lump
Two-inch lump .
Three-quarter . .
. .. 1.50@1.75
. . . 1.25@1.40
... 1.05@1.10
.90
2.90@3.15
2.65@2.80
2.45@2.50
2.30
Nut, pea and slack .
. . . .75@ .90
3.15@3.40
Smokeless —
Lump and egg .
Nut .
2.25
3.85
3.35
Open
Mine run .
1.40
3.00
Kentucky Splint —
Lump . 1.75@2.00
Kgg . 1.25@1.40
Nut, pea and slack . 75@ .90
Fairmont —
Three-quarter steam lump . 1.10
Mine run . 9.5(31.00
Slack . Open
3.15@3.40
2.65@2.80
2.16@2.30
2.50
2.35@2.40
Open
Hocking Valley —
Shaker three-inch lump. .
Shaker egg and nut .
Domestic lump .
Three-quarter lump .
Mine run .
Nut, pea and slack .
Pittsburgh No. 8 —
Three-quart'.-r lump .
.Mine run .
Slack .
Jackson Hill —
Domestic lump .
Cambridge —
Three-quarter lump .
Mine run .
Pomeroy — •
1 wo and three-inch lump
Kgg .
Slack .
1.60
1.25
1.50
1.35
1.00@1.10
Open
1.05
.95
Open
2.50
1.20
1.10
1.60
1.35
.75(3 .90
2.75
2.40
2.65
2.50
2.15(32.25
Open
2.20
2.10
Open
3.65
2.35
2.25
2.75
2.50
1.90(32.65
St. Louis Trade.
St. Louis, Mo., December IG. — (Special Corre¬
spondence.) — The colder weather has helped the
domestic situation considerably. While the
weather has only been moderately cold, in fact
just about freezing points, even this little touch
of cold weather has stirred things up consid¬
erably and shows that everything is in good con¬
dition.
The mines throughout the state of Illinois have
been able to do a little better in fact about five
days a week working time has been maintained,
and probably most of the mines will begin do-
full time if the weather continues cold.
The dernand on screenings and steam sizes
have also increased and the prices are stiffening
up, in spite of this fact, lump has been running
better. This is a sure sign that we can anticipate
a strong screening market for the rest of the
season.
The whole feeling of the trade is much more
optimistic and things are in such a condition
now that it would only take the slightest spell of
cold weather or a touch of car shortage to make
a very high price market. In other words with
full car supply and only moderately cold
weather, as far as the mining is concerned
everything is in a free and easy state. The bal¬
ance between supply and demand is almost equal,
and it would only take a very small curtailment
of output or a very small increase in demand to
make the demand far outrun the supply.
Standard coal is selling about the same figures
as heretofore, there is a stiffer demand on all
sizes. Prices are as follows:
Standard Coal — Mine.
6-inch lump . $1.25
6x2-inch egg . 1.25
2-inch lump . 1 05
Steam egg . jgo
No. 1 nut . 115
No. 2 nut . .so
.Mine run . 85
Screenings . jeo
F. O. B.
St. Louis.
$1.82H
1.82
1.62‘/2
1.47!4
1.72J4
1.37J4
1.42/,
1.17J4
The demand for steam sizes from Chicago and
the mines in the Springfield and Staunton dis¬
trict are brisk. Egg and lump are also moving
better.
F. O. B. F. O. B,
C-inch lump . $1.50 $2.07)4
2-inch lump . 1,25 1.82‘4
Screenings . 60 1 17)4
Williamson County mines are much better off
than last week in regard to lump and egg or¬
ders. Screenings are very scarce indeed.
F. 9. B. F. O. B.
Mine. St. Louis.
6-inch lump or egg.. . $1.40(31.75 $2.02)4 @2.47)4
3x2-inch nut . 1.20@1.75 1.92)4 @2.47)4
Screenings . .65 1.37)4
The demand for domestic sizes from Frank¬
lin County is very much brisker, and it is an¬
ticipated that the Franklin County mines will
probably be over sold with the slightest touch
of cold weather on all domestic sizes. Steam
sizes from Franklin County are in stiff demand.
F. O. B. F. O. B.
Mine. St. Louis.
6-inch lump, egg or nut . $1.75 $2.47)4
No. 2 stove . 1.50 2.22)4
Screenings . 70 1.42)4
Anthracite is in a fair demand, locally. Chest¬
nut is still moving actively in the country. Smoke¬
less is a little dull, though coke is making quite
a spurt at the present time. Demand has im¬
proved and prices have also gone up.
Anthracite — F. O. B. St. Louis.
Chestnut . $7.65
Stove or egg . 7.30
Grate . 7.05
F. O. B. F. O. B.
Mine. St. Louis.
Lump or egg . $2.25 $4.75
Gas House Coke — F. O. B. St. Louis.
Gas house coke . $4.26
By-product coke (all sizes) . 5.00
The prices on Illinois soft coal, f. o. b. Fast St. Louis,
Madison, Venice or Granite City, Ill., are 20 cents lower
than the above quoted St. Louis prices.
516
THE BLACK DIAMOND
[December 18
Cincinnati Trade.
Weather Favors a Heavy Consumption of
Coal But a Heavy Accumulation
Prevents Strong Prices.
Cincinnati, Ohio, December IG. — (Special Cor¬
respondence.) — While there has been excellent
weather for consumption of fuel, and while there
has been large consumption, the domestic mar¬
ket in this territory has been in such condition
as to profit very little by it so far. Producers
and dealers, however, recognize it as a fact that
if the weather should continue as it has in the
past ten days that it will not be more than another
ten days that this demand will continue. In
fact, from various directions come indications
that a fine demand is springing up and that this
will rescue the market from its present condi¬
tion, which is one of overproduction, under¬
price and choked-up delivery in domestic. The
condition, as far as price is concerned, is due
largely to the bad judgment shown in the lake
trade by smokeless shippers who glutted the docks
with coal which could not be delivered to the ves¬
sels, and which, when dumped on the market in
the northwest, sent prices galley-west. The de¬
livery situation is largely due to the car scarcity
and the difficulty in being able to send out the
right kind of equipment.
While smokeless coals feel the effect of the
sale of several hundred cars of lump and egg at
$1.40, mine run prices, some of the producers have
retired from the market except to deliver con¬
tract coal, which in their case is going at the regu¬
lar prices. Quite a number have not been at all
affected by the slump, every ounce they can de¬
liver in the present state of delivery going to con¬
tract customers. Others who cut prices to meet,
what they term, an “emergency” have been un¬
able to deliver the cheaper coal and it has done
them little good. A recovery is expected by the
turn of the year, and those holding out are doing
so for that reason. Splint lump demand has been
affected by the slump in smokeless, but not to the
extent feared by some of the timid ones. In fact,
if the producers had stood “pat,” there would
have been no effect, for the absorption of the
smokeless surplus, which has been accomplished,
saved their market.
Prices in the Kentucky field are holding well,
under conditions prevailing, the grades generally
considered, the higher holding around $2, or a
little better, for four-inch block; $1.60 for egg;
no effort to sell nut alone in many districts, but
ranging from $1 to $1.25 where produced ; and 85
to 90 cents for nut and slack where they can be
had. The nut and slack market is a joy and de¬
light to producers, for it is strong, steady, advanc¬
ing and promising for the future. It might be
inferred that the strength of this product is due
to the slowness of domestic at this time, but this
is not altogether the fact. It has some bearing
on the market, and so has the car situation, but
the best factor in that trade is the growing de¬
mand through the country for manufactured
goods clearing the storehouses of the manufac¬
turers and thus setting the spindles, looms, fur¬
naces, and rolling mills in operation. As these go
to work, more and more labor is employed, more
wages distributed, more buying power created and
more activity in all directions engendered. This
is better than the war material demand for the
coal producer. In the Kentucky field, also, there
is a peculiar situation which is, that while the
schedules of the contract and spot order prices
have been advanced as usual in the circular, and
they should be $2.25 for the better grades of coal
and $1.75 to $2 for December delivery of the
other grades, both spot and contract prices are
being held to November prices. In the contract
it is not strictly necessary but some of the wiser
dealers have been billing out December delivery
at November prices and many grateful letters in
acknowledgement have been received. In the
lesser grades, therefore, prices have been about
$1.60 to $2 for lump; egg, $1.25 to $1.30; mine
run, $1 to $1.10, and, where manufactured, 3-inch
lump, $1.50 to $1.65.
West Virginia prices remain about where they
were in November, also, except that in most cases
where schedule was fixed it has been adhered to,
but there has been little difference from the
fact of car shortages. The users of West Vir¬
ginia coal have paid very little attention to price
changes on this account, being willing to pay a
little more for favorite products and prompt de¬
livery. Kanawha lump is $1.60 to $2; egg, $1.35
to $1.50; mine run, 90 cents to $1.10; nut and
slack, 75 to 90 cents. This embraces nearly all
grades but the very cheapest, which run at almost
any price. In all fields an average estimate of the
factors of the market gives about the following
result, making due allowance for slightly better
car service in the C. & O. territory: Car allot¬
ment, 70 to 75 per cent; labor, 75 per cent; deliv¬
ery, 80 per cent of normal at this season ; produc¬
tion, 85 per cent; collections, 95 per cent; general
situation, 80 per cent of normal. The holidays
will take at least ten days of good production out
of the situation January 3 ; consumption will take
100 per cent of normalj and at the beginning of
the year operations will face strong demand, bet¬
ter prices and difficult delivery.
Cincinnati Trade News.
George Keyes of the P. & O. Coal Company,
Cleveland, Ohio, and C. E. Kline of the Wauban
Coal Company, Chicago, were callers on friends
in the state Saturday.
J. B. Ratterman of the Blue Ash Coal Company
last week was initiated into the Cincinnati Coal
Exchange and as a member of the Chamber of
Commerce. Mr. Ratterman came here some
months ago from Louisville, Ky., to take charge
of the Blue Ash company as manager.
The Wyatt Coal Company was able to send out
three boats after the close of navigation on the
lakes, by taking all risks on the voyage, two
large vessels going out last week and the third
sailing Wednesday this week. The latter is be¬
lieved to be the last boat sent out of the lower
harbors this season. The boats had been tied up
with grain shipments, and for that and other rea¬
sons could not respond to contract with the
company earier.
John A. Pageler, Michigan and northern In¬
diana representative of the Pocahontas Fuel Com¬
pany, is lying seriously ill at his home at Fort
Wayne. Some weeks ago Mr. Pageler, who is
well known to coal men all over the west, went
“in” from his “route” suffering from what was
diagnosed as ptomaine poisoning. Later the
symptoms were of bronchial trouble, and this
week the sickness has developed into what is be¬
lieved to be a very serious case of pneumonia.
His friends are alarmed about his condition.
Samuel Perry of the Gray Eagle Coal Com¬
pany, Kermit, W. Va., and Frank S. Easley,
president of the Bluefield Coal & Coke Company,
Bluefield, W. Va., were visitors from the West
Virginia fields this week. Frank Harris, general
superintendent of the Cannelton Coal & Coke
Company, Cannelton, W. Va., was also a visitor
in the city from another field of that state. Among
railroad officials circulating among Cincinnati
coal offices this week was Omar O. Mills of
Columbus, commercial agent of the T. & O. C.
Railway.
The Raleigh Coal & Coke Company officials
in this city. President John M. Wright and Secre¬
tary A. A. Liggett, were present Saturday night
last week at the opening of the new Virginian
theater at Raleigh, W. Va., Mrs. Wright accom¬
panying Mr. Wright. The interesting feature of
the occasion was that the theater building had
been built by the company and turned over to the
Raleigh Mining Institute, an organization of of¬
ficers and employes of the company, to run for
the common good. This is the third enterprise
thus entrusted to the institute, all of which are
prospering. The first is the Institute building,
which is used for the common good of the mem-
bers, being fitted as club rooms and having a
library and reading room. The second is a base-
liall ground prepared and fitted out in modern
style and turned over. The third is the theater
Iniilding. A committee of the Institute for each
of these enterprises conducts the business, pay¬
ing all expenses, and setting aside a sinking fund
for the extinguishment of the claims against the
enterprise, the object being to purchase and retain
the enterprise for the Institute. The baseball
ground paid seventy-five per cent of its purchase
price the first year and will extinguish the balance
the second year. It is hoped the theater enter¬
prise will be equally successful.
Saturday night was devoted to music ; a picture
presentation, “The Diamond in the Sky” ; and a
lianquct followed for the membership of the In¬
stitute, their families and the officials of the coal
company. A sixteen-piece orchestra, a twenty-
piece colored band and a sixteen-piece, philhar¬
monic, Hungarian band furnished the music, all
the performers being employes of the company.
In a box at the performance were President and
Mrs. Wright, of this city. General Manager and
Mrs. Ernest Chilson, Treasurer and Mrs. H. V.
Stephenson, Secretary A. A. Liggett, General
Superintendent James P. White, Company Phy¬
sician Dr. Banks. Store Manager W. W. Reif and
other guests. The design of the stage curtain
was painted by a miner in the company’s employ.
The stage performance, beside the picture presen¬
tation, was by local talent from among the miners.
A chorus of fifty miners’ and employes’ daughters
presented an elaborate “Flag Drill” ; while the at¬
tendance was about 1,200 parents, friends and as¬
sociates of the performers. Able speaking and
singing were also a part of the exercises, which,
with the banquet, contributed to a jollification
continuing until 3 o’clock the following morn¬
ing. The theater is a modern building, fully
equipped with the most modern equipment, ca¬
pable of seating 1,000 people and would be a credit
to any city in the country. Business rooms will
occupy a part of the building, the offices of the
managers and others being also located in the
building. The company is very proud of this
welfare venture. The Institute, which has been
in operation for five years is no longer an
experiment. At the close of the day President
Wright and General Manager Chilson were pre¬
sented with handsome loving cups.
Omaha Trade.
Omaha, Neb., December 16. — (Special Corre¬
spondence.) — Holiday shopping, as a rule, gives
very little consideration to the common neces¬
sities of life and as the weather has not been
such as to strongly suggest fuel, the local
market is experiencing its usual quietude.
Dealers report that business throughout the
fall has been satisfactory, although the ele¬
ments of excitement have been lacking pend¬
ing the approach of a real “cold snap.” Con¬
ditions throughout the state seem to be about
normal. Today the thermometer is dropping
and there is every indication of snow.
The Routt county field is feeling the ef¬
fects of the car situation as the Denver &
Salt Lake Road has refused to furnish box
cars for loading nut coal with a view toward
supplying the demand for lump and egg ship¬
ping facilities.
Despite the advance in freight rates, going
into effect today, anthracite has been very
slow. The tonnage on egg and range sizes
has not been equal to that of previous years,
a condition which dealers account for by the
increased number of oil burning furnaces, as
well as the popularity of petroleum coke and
other substitutes.
The A. B. Currie Company makes a spe¬
cialty of western coal and reports that the
demand for Mt. Harris coal is making this
one of the most popular grades in Nebraska.
Routt county also has been especially good
with this firm. Other dealers seem to think
that the market is well stocked with Routt
county coal and that tempting offers are re¬
quired to move it.
Cherokee nut is running from $1.85 to $2.00
and slack is tight at $1.35. Cherokee mill
is bringing $1.50. Missouri screenings have
been a trifle weak, running at from 60 to 85
cents. Nut and mine run from this terri¬
tory are going at $1.50 each. Iowa screenings
have strengthened very materially, the coal
moving at from ninety cents to $1.00, with
but few offerings made. Iowa mine run is
quoted at $1.35 and walnut block at $2.00. In
the Illinois field the Franklin county market
is unchanged. Better grades of lump, nut
and egg are offered at $1.75; other Franklin
county coals are offered at $1.40 to $1.60.
Montgomery county grades seem to be weaker
of late; lump is quoted at from $1.10 to $1.35,
and egg is offered at the same figures. Num¬
ber one washed nut is in better demand, at
$1.50. There have been few quotations on
Carterville coal, prices running at about $1.50
on lump and nut. Rock Springs, Wyoming,
coal is rather slow because of the weather.
Lump from this vicinity is quoted at $2.50,
grate at $2.40 and nut at $1.75. Hanna lump
is offered at $2.50 and grate and nut sizes at
$1.75.
Omaha Personal Notes.
Mr. McKabe of the Lehigh Coal Sales Com¬
pany, Chicago, stopped at Hotel Fontenelle
during a visit to the city last week.
T. O. McLaughlin, Nebraska sales agent
for the Gunn-Quealey Coal Company, was
an Omaha visitor during the past week,
G. A. Barrett of the Connelsville Coal and
Mining Company, Connelsville, Mo., called on
his local friends during the past few days.
Dave Johnson of Murray & Johnson. Goth¬
enburg, Neb., was in the city during the past
week and reported conditions in his home
town as “mighty fine.”
No. 25]
517
THE BLACK DIAMOND.
Indianapolis Trade.
Indianapolis, Ind., December 16. — (Special
Correspondence.) — ^The Indiana coal trade is im¬
proving all the time. The demand for steam coal
is fine. There is hardly a mine in Indianapolis
that is not being operated up to the limit and
the jobbers are having difficulty in getting as
much coal as they can sell. Prices are a trifle
stronger than they were last week although there
has been no marked advance. Domestic grades
are strong. The retailers are doing a rushing
business and are keeping right after the operators
for coal. The demand for domestic coal is
strong in every city in the state. The demand for
steam coal is better than it has been for more
than a year. The only surprising feature of the
situation is that prices have not gone up on
steam grades. Steam coal that is not being sold
under contract is higher than it has been, but it
happens that many of the industrial concerns that
were not taking much coal a few wesk ago are
now taking the limit of their contracts. Domes¬
tic coal is selling about the same as it did last
week, but a $2 market for Indiana is predicted.
It would not be surprising if Indiana domestic
should be selling at $2 a ton at the mines by
the first of the year. The railroads are moving
coal pretty well, but is keeping after the opera¬
tors and dealers to see that cars ar unloaded
promptly. The following prices are being quoted
by the wholesalers here :
Indiana — ■
Mine run. No. 4 .
Mine run. Nos. 5 and 6 .
Nut .
Egg .
Ipi-inch steam lump .
No. 4 screenings.... .
Nos. 5 and 6 screenings .
2;4-inch domestic. No. 4 .
4-inch domestic. Nos. 4 and 6
Brazil block domestic .
No. 1 washed coal .
No. 2 washed coal.... .
Southern Indiana Field —
Mine run .
Domestic lump .
F. O. B.
Mines.
$1.10@1.20
1.05@1.15
1.20@1.30
1.30@1.40
1.25@1.35
.80@ .90
.65@ .75
1.50@1.55
1.65@1.70
2.25@2.50
1.75
1.65
F. O. B.
Indianapolis.
$1.60@1.60
1.55@1.65
1.70@1.80
1.80@1.90
1.75@1.85
1.30@1.40
1.15@1.25
2.00(®2.05
2.15@2.20
2.75@2.50
2.25
2.15
1.05@1.10
1.40@1.50
The Indianapolis, retailers are quoting the fol¬
lowing prices: Linton No. 4, lump, forked, $3.25;
Indiana lump, forked, $3.00; Indiana lump and
egg, screened, $2.75 ; Kanawha lump, forked,
$4.25 ; Ohio Hocking lump, forked, $4.25 ; Ohio
Hocking washed egg, $4.50; Kentucky lump,
$4.50; Ohio Jackson lump, forked, $5.00; Bloss-
burg, smithing, $5.50; Cannel lump, $6.00; Poca¬
hontas, forked lump, $6.00 ; Pocahontas, shoveled
lump, $5.50; Pocahontas, mine run, $4.50; Poca¬
hontas, nut and slack, $3.75; Anthracite, chestnut,
$8.25; Anthracite, stove and egg, $8.00; Anthra¬
cite, grate, $7.75 ; Connellsville coke, $6.00 ; In¬
dianapolis by-product coke (all sizes), $6.00.
Extra delivery charges : Bags, 50s a ton extra,
ground floor or dumped in cellar; bags, 75c a ton
extra, carried into cellar.
Indianapolis News Briefs.
Job P'reeman, Terre Haute, who is running
again for the Republican nomination for state
treasurer, was here this week.
Samuel M. Sexton, formerly editor of the
United Mine Workers’ Journal and for many
years a prominent figure at the miner workers’
conventions, died here this week. He was well
known throughout the coal fields of this country.
The Vandalia railroad has let contracts for
the building of $150,000 worth of switches and
terminals at Bicknell, Ind., where some big coal
properties are being developed. The Pennnsyl-
vania railroad has made an appropriation of
$300,000 for new freight terminals here indicat¬
ing that the general industrial situation is im¬
proving.
Denver Trade.
Denver, December 16. — (Special Correspond¬
ence.) — About all that is saving this market from
stagnation this week is the cold nights. During
the past ten days Indian summer temperatures
have prevailed during the daytime, but the nights
have been marked unusually by temperatures close
around freezing or below. In consequence of this
weather condition, local retailers report a ma¬
terial falling off in the volume of their sales, as
compared with two weeks ago.
The lignite output this week is about 20 per
cent under that of last week, and would be less
were it not for the sugar factory requirements.
The Trinidad district output shows but a slight
falling off, but they were behind on the filling of
orders from last week and the week before. The
production of the Walsenburg mines is about 60
per cent of normal, and the Canon City mines will
produce a tonnage ten per cent under last week.
Routt county operators are all running full
time and report a steady arrival of orders during
the past two weeks from country dealers. Their
production for the week is about normal.
The slack situation is weak and the demand is
slow for any grade. Many sales at a shade under
regular prices are reported. Unless there is a de¬
cided change soon in weather conditions, there
will be a surplus to be reckoned with.
The following prices for lignite are ruling, f. o.
b. mines : For Denver delivery, lump, $2.35 to
$2.65; mine run, $1.50 to $1.65; slack, $1.05 to
$1.25. For points outside of Denver, lump, $2.50;
mine run, $1.55 to $1.65 ; slack, $1.05.
Colorado Southern Sued.
Denver, December 16. — (Special Correspond¬
ence.) — Judgment for $9,456 is demanded by the
National Fuel Company in a suit filed against the
Colorado & Southern Railway Company. The
fuel company alleges that the railroad company,
prior to Feb. 15 last, induced it to solicit orders
for coal in Mexico, promising that it would pro¬
vide sufficient cars for delivery at Mexican points.
After it had obtained orders for 1,066 carloads of
fifty tons each, the coal company states, the rail¬
road provided only sixty-six cars. As a result the
plaintiff was unable to fill its orders.
The coal company further alleges that the rail¬
road company failed to deliver the sixty-six
loaded cars to their destination in Mexico, and
the coal was sold in El Paso at an actual loss of
$736.11.
This is believed to be the first coal suit growing
out of the Mexican war.
Cleveland Market.
Cleveland, Ohio, December 16. — (Special Cor¬
respondence.) — The point of interest in this
market during the past week is the advance in
price of almost all grades of coal. In some
cases the advance amounts to ten cents a ton
and in several different grades all sizes are af¬
fected. This includes the No. 8 field in which
most of the Cleveland producers are mor eor less
interested, as well as the Cambridge and other
sections of the state.
The cause of the advance is the demand for
coal from the eastern states. Local shippers are
sending a great deal of coal to points much
further east than it is usually sold, while the
coals which have been supplying these points are
going still further east. The indications, as
taken now by the local producers, is that this
demand will continue and the market will remain
strong for some time to come.
In order to facilitate deliveries, it is said that
a great deal of coal marked for eastern points
is being routed by way of Lorain, so that the
Lake Shore railroad may be used from that
point. Coal shipments on this section of the road
are usually light. No. 8 coal is also going over
the Wheeling & Lake Erie, the Pennsylvania and
the Lake Erie, Alliance & Wheeling.
Because of the large amount of run of mine
that can be shipped just now, it is the belief of
coal men that slack will soon have to sell at a
price equal to that of run of mine. If it does
not, producers will not makeslack, but will ship
it to points where run of mine can be used.
Lower temperatures have brightened the do¬
mestic trade somewhat, but it had not had any
material effect yet on the wholesale and produc¬
ing end of the business.
The larger sizes of No. 8 coal showed an ad¬
vance of ten cents a ton all around the past
week, while slack is quoted at $1.00 instead of
ninety-five cents, as it was last week. There
has been an active demand for this grade of
coal. Quotations follow :
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.20 $2.10
Run of mine . 1. 10 2.00
.Slack . • . 1.00 1.90
The movement of Coshocton coal has been
satisfactory the past week and prices on all
sizes have advanced from five to ten cents a
ton :
F. O. B. F. O. B.
Coshocton — Mines. Cleveland.
Lump, 4-inch screened . $1.80@1.85 $2.50@2.5.6
154 inch . 1.70@1.75 2.40@2.4,5
Egg and nut . 1.15@1.20 1.85@1.90
Pittsburgh slack has advanced with all other
coals handled in this market and the quotation
is at least ten cents higher tlian last week:
F. O. B. F. O. B.
Pittsburgh — Mines. Cleveland.
Slack . $1.00 $2.00
Massillon slack is in demand at $1.10 to $1.15
per ton, which is an advance of between five and
ten cents a ton over last week. Other sizes
remain at circular prices.
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
Lump . $2.50 $3.20
Nut . 2.50 3.20
Slack . 1.10@1.15 l.S0@1.85
Smokeless coals have shown increased strength
during the past week and the drop in tempera¬
ture will probably have a good affect on the
market. Quotations are as follows :
Smokeless —
Lump .
Egg .
Run of mine.
F. O. B. F. O. B.
Mines. Cleveland.
$1.60 $3.25
1.80 3.25
1.25 2.70
Cambridge prices are very much the same as
the No. 8 coals in the various sizes. The demand
is good and receipts should be heavier without
weakening the prices, which are as follows :
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Three-quarters . $1.20 $2.10
Run of mine . 1.10 2.00
Slack . 1.00 1.90
The price of Kentucky block is about the same
as last week :
F. p. B. F. O. B.
Kentucky — Mines. Cleveland.
4-inch block . $1.90@2.00 $3.15@3.25
Youghiogheny slack shows an advance in price
of about ten cents a ton, while the larger sizes
are quoted at about the same figures as week
ago. Slack is strong at $1.10 at the mines. Prices
as follows:
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
l>4*inch . $1.40@1.50 $2.40@2.50
Three-quarters . 1.30 2.30
Run ot mine . 1.20 2.20
Slack . 1.10 2.10
Prices of Bergholtz coal have changed but little
from last week, although there has been but a
small amount of it in the market :
Bergholtz —
6-inch lump. . .
l}4-inch .
Three-quartrrs
Egg - - - - -
Run of mine.
Slack .
F. O. B.
Mines.
$1.70
1.45
1.35
1.25
1.20
1.10@1.15
F. O. B.
Cleveland.
$2.40
2.15
2.06
1.95
1.90
1.80@1.85
Goshen slacks have advanced five cents a ton,
but there has been little change in the other
sizes. It is probable, however, that conditions
are such that the larger sizes will follow the
trend of other coals within the next few days.
Quotations :
F. O. B.
F. O. B.
Goshen-Wainwright Mines —
Mines.
Cleveland.
Three-quarter domestic .
$1.40
$2.10
3-inch lump .
1.80
2.50
Lump .
1.65
2.35
Slack .
1.15
1.85
F. 0. B.
F. 0. B.
Goshen —
Mines.
Cleveland.
Three-quarters .
$1.30
$2.00
lJ4*inch .
1.40
2.10
Run of mine .
1.15
1.85
Slack .
1.15
1.85
Cleveland Notes.
Charles O. Jenkins, who will manage the
steamers of the Jenkins Steamship Company, has
opened an office at 904 Rockefeller building.
M. A. Hanna & Co. and the Cambria Steel
Company have jointly purchased four 10,000-ton
boats from the Frontier Steamship Company of
Tonawanda, and one of the same class from the
Niagara Transit Company, of the same port.
The boats purchased are the Charles Weston,
D. B. Meacham, J. G. Munro, James Corrigan
and W. A. Rogers. Control of the steamers
Charles O. Jenkins, Thomas Shaughnessy and F.
B. Squire, of the Jenkins Steamship Company,
was secured by M. A. Hanna & Co. some time
ago, and another new steamer has been ordered
built.
Operators here have so far declined to discuss
the effort of the miners’ organization to call a
meeting of miners and operators of Ohio, In¬
diana, Illinois and western Pennsylvania, with the
idea of re-establishing the four-state agreement
that was dissolved at Chicago two years ago.
They say that there is yet notliing to discuss and
the less said about plans of this kind, the better,
especially in the inception of the attempt to get
together gain. Apparently the operators are look¬
ing to each other to decide on what is best to be
done when the present contracts expire in April.
The dissatisfaction of the Hocking Valley oper¬
ators over the agreement finally reached in the
Eastern Ohio field may have something to do
with the matter. It is pretty safe to say that the
miners are as anxious as the operators to reach
a plan that will result in satisfactory contracts.
THE BLACK DIAMOND
518
[December 18
New York Trade.
Blizzard Brings Chaos to Deliveries of
Both Anthracite and Bituminous
— Latter Prices Higher.
Office vf The Black Diamonh,
.\i;\v York, JJecembcr JO.
•Shipping in the east cn many of the railroads
was made impossible for several days this week
by the blizzard there l)egnn on Alonday. At this
writing service on many of the roads was far
from normal, so that taken as a whole but little
anthracite has been delivered in certain important
consuming territories this week.
Up to Monday the demand for anthracite was
good from all sources. Coal was moving pretty
freely; all of the domestic sizes, with the excep¬
tion of c,gg, being readily absorbed. However,
no premiums were being paid, but no concessions
were being made, so that on the whole the mar¬
ket situation was just al)out as satisfactory as one
could wish.
Complaints about show movement of ears had
lieen the rule for some weeks. This week the sit¬
uation in this respect had grown very serious
even before the blizzard came to further demor¬
alize shipping. Uue to the congestion of loaded
cars in and around New York, hundreds of coal
cars on most of the important coal carrying roads
serving the anthracite markets were sidetracked,
and deliveries, especially to the tidewater ports,
have been slow. Some shippers report no deliv¬
eries on anthracite loaded nearly a month ago,
cars being sidetracked here and there between
the mines and tide, to give headway for more
important freight.
Undoubtedly by the end of the present week
some sections will be so short of anthracite that
consumers will suffer.
In the way of production, November tonna.ges
were given in last week’s issue. These show
shipments to the end of November 2,458,125 tons
behind the first eleven months of 1914. This
shortage does not represent by any means the
actual falling off in the supply of anthracite for
winter use. In spite of repeated warnings that a
scarcity of fuel would be apt to occur when cold
weather approached, consumers this year have
not, to the same extent as formerly, laid in their
winter supply in advance, and retailers were
equally laggard in placing their orders. Not in
any year since 1901, when the spring and summer
discounts were put into effect, has so little advan¬
tage been taken of the opportunity to purchase
coal at reduced rates. The Anthracite Bureau of
Statistics points out that : “The anthracite com¬
panies have had a thorough realization of what
the result of this would be and have maintained
production at a rate hardly justified by the mar¬
kets. putting the surplus into stora.ge until many
of the storage yards were filled much above rated
or intended capacity. These storage yards are,
however, at relatively short distances from the
mines, and not at points of consumption. In the
event of car shortage or of interruption to traffic
on the railroads it is just as difficult to get this
storage coal to market as it is to get the freshly
mined product from the breakers.’’
What a break in transportation means has been
fully brought home to many tardy retailers this
week.
The steam sizes are in fair demand. Pea is in
excellent demand for line shipment.
New York anthracite i)rices are:
Upper I.ower
Ports. Ports.
Proken . $.S.10 $5.00
Pgg . 5.35 5.25
Stove . 5.35 5.25
Chestnut . 5.00 5.50
Pea . 3.55 3.45
Special grades of red ash and other high-grade
coals at the lower ports sell at twenty-five to
llft\- cents per ton over above figures.
Spot prices in individual coals at lower ports
are about as follows :
•Stove
Nut .
Pea .
Buck
Rice .
Barley
. $5.05 and up
. 5.20 and up
. 5.20 and up
. 3.25 and up
. 2.30 and up
. 2.00 and up
. 1.75 and up
The Bituminous Situation.
The bituminous market tins week still retains
the run-away features that developed last week.
■After the effects of this week’s blizzard, said to
be the most severe the east has seen since 1888,
are weighed, it will no doubt be found that many
consumers are actually facing shut-downs because
of lack of fuel, for transportation conditions
were very bad even before the blizzard came to
brin,g a complete stop to the movement of coal
for two or three days.
For instance, on Monday, when the New Haven
system officials were warned that a blizzard was
on the way, orders were immediately Hashed to
put all freight trains on sidings and devote all
energies to keep passenger trains moving. To
depict the New Haven’s dilemma, on Tuesday no
trains moved at all on some of its most important
lines. And other railroads fared very little bet¬
ter.
Prices on Tuesday were freely (pioted at $2.50
to !|;.'!.00 per ton at Pennsylvania mines. This was
an advance of twenty-five to fifty cents per ton
over prices prevailing last week. At New York
tidewater ports but little free coal was to be
obtained. Prices asked ranged all the way from
$3.75 to $4.50.
Conditions in the mining regions are reported
as bein.g very bad. Car and labor are both bad.
Fortunate indeed is the operator who can get
out within twenty-five per cent of a normal pro¬
duction. Shippers are finding it a most difficult
task to divide shipments between their customers.
Certain customers who would take only a very
small percentage of their allotted monthly tonnage
during the summer and fall months are now
demanding shipments of such proportions as to
make up their shorta.ge of tonnage in previous
months.
Locomotive fuel is also in heavy demand, and
practically all of the eastern roads are consuming
coal more heavily than at any time in the pact
few years.
In New York harbor the bunker business i.s
very active, and contractors for bunkers who do
not operate their own mines and are not fully
protected by contracts, are having their troubles
in buying spot coal to make good on deliveries.
Movement of coal about the harbor is greatly
retarded by lack of boats.
The Vessel Situation.
The coastwise vessel situation has grown more
acute. From Hampton Roads to Boston $3 would
be the rate, but few boats are available at this
rate. From Philadelphia very high prices are
offered with practically no boats available.
To some points rates are abnormal.
Current rates are as follows ;
From Hampton Roads to Boston, $2.50 to $3.00
is about the range ; to Portland and points east
of Boston, the same. To sound points, $2.00 to
$.25. From Philadelphia to New England points,
$1.75 to $2.25.
From New York to sound points as follows:
Bridgeport, sixty-five cents; New Haven, seventy-
five cents; Province, $1 to $1.10; New Bedford,
$1 to $1.15. To Boston, around cape, $1.25 to
$1.75. Harbor rates, twenty-five to thirty cents.
Current quotations on bituminous coal in spot
lots are :
Best grades . $4.50 $3.00
Medium grades . 4.00 ‘.J.rjO
Medium grades . 3.75
Cambria Cpunty —
Best Miller vein . 4.50 3.00
Medium grades . 4.00 2.50
Cheaper grades . 3.G5 2.15
Clearfield County —
Best grades . 3.G5 2.15
Ordinary grades . 3.G5 2.15
Indiana County —
Best grades . 3.65 2.15
Medium grades . 3.55 2.05
Maryland —
Georges Creek big vein . 4.25 2.75
West Virginia —
Ordinary grades . 3.50 1.95
Best gas, ^-inch lump . 3.25 1.85
Rest grade, run of mine . 3.25 1.85
Gas slack . 1.35@1.65
New York. Trade Briefs.
C. J. Wittenberg of the Wittenberg Coal Com¬
pany sailed last week for Europe.
L. S. Evans, president of the Ifastern Coal &
Export Corporation, of Richmond, \’a., was in
New York early this week.
E. J. AlcCormack of the Commercial Coal Com¬
pany, No. 29 Broadway, returned last week on the
steamship Nieuw .Amsterdam from a trip to Eu¬
rope.
S. D. Fobes, sales manager of S. P. Burton &
Co., of Boston, was in New York on Tuesday, en
route home from the central Pennsylvania fields.
Mr. Fobes believes that coal will sell at the Penn¬
sylvania mines in excess of $4 per ton in the next
several weeks.
At the annual meeting of the New York Coal
Merchants’ Association, held on Monday, W. A.
Leonard was re-elected president, and Theodore
Trimmer vice-president. Arthur F. Rice was re¬
elected commissioner, with which office is asso¬
ciated the duties of secretary and treasurer. Re¬
tiring directors were re-elected. Commissioner
Rice’s annual report was one of the most interest¬
ing yet made by him, and it will be printed in an
early isue of The Black Diamond.
A cable from Paris announces the engagement
of Mr. Charles S. Thorne, vice-president of the
Pophontas Fuel Company, of New York, to an
estimable New York lady, who has been residing
in Paris for the past several years, and who has
l)cen prominently identified with the Red Cross
work since the iiresent war started. No date is
set for the wedding. Mr. Thorne sailed from
New A'ork on November 20, on his annual trip
abroad to look after the interests of his com¬
pany.
Advices that come from the southeast show
that the railroads are using vast quantities of
coal now as locomotive fuel. Their traffic is the
heaviest in many years, and they are taking
enormous quantities of coal at present, not for
stocking purposes, but for present needs. In the
east there are quite a few of the big roads that
are not as well protected as to coal supplies as
they would like, and certain buying of late has
been attributed to them. This week’s blizzard has
taught them the folly of expecting current ship¬
ments to take full care of their needs.
■As indicating that the shipments of munitions
is by no means on the wane, one important New
York shipping concern is said to have a con¬
tract to transport as soon as ships can be secured,
five hundred thousand tons of stuff to Vladivos¬
tok. This will mean the employment of more
than eighty ships of 6,000 tons cargo capacity,
and these boats will require in excess of 1,000
tons bunkers each before starting from New A^ork.
One wonders also, from reading almost daily
the spel and munitions purchases being made
in this country, shipments to cover practically
al of the year 1916, just where ships are going to
be found to take this tonnage across. All of this
points to heavy bunker requirements at the Amer¬
ican ports.
Adolph Busch, the well known St. Louis brewer,
is one of the financial backers of the newly or¬
ganized Standard Shipbuilding Company, which
has taken over fhe Downey & Townsend ship¬
building plant on Shooters Island, on the Kill von
Kull and Newark Bay. Already work has been
started to put this plant in order to turn out
merchant vessels. One million dollars will be
spent on improvements. For the first year, com¬
mencing in about two months, one ship every
sixty days will be launched. After the second
year a ship will be launched every thirty days.
Schwab interests will also open up a big plant
near Elizabethport, and still there is talk of an¬
other big shipbuilding plant to be operated on the
Staten Island side of the Kill. News also comes
from Newcastle, Delaware, that the Bethlehem
Steel Company plant at that place will be turned
over to shipbuilding.
Baltimore Trade.
Baltimore, December 16. — (Special Cor¬
respondence.) — The coal trade here is in a
state of excitement and uncertainty. Under
the most rigid car scarcity known to the
trade in years the supply of available fuel is
growing so scarce that consumers are begin¬
ning to feel the pinch in disagreeable man¬
ner. Already some of the smaller fellows who
rely on the sending through of their full con¬
tract orders to run their plants are curtailing
their output because they can not get fuel as
desired.
Coal is extremely scarce at tide. The local
yards of the three railroads centering here
were practically swept clear of fuel the entire
week. Some days there was not more than
fifty or sixty car loads in sight, and even with
the lessened export movement by reason of
inability to get vessel bottoms, some holdups
in shipment were recorded because cars could
not be gotten through with coal loads.
Brisk trading was being done between ship¬
pers and agencies for the coal in sight in or¬
der to cover their emergency contracts. Every
effort is being made bj" the trade to care for
their older customers, but some have fallen
so far back in supply that a break from this
precedent all along the line is threatened un¬
less the car situation improves rapidly.
Anthracite men are in little better shape
than their bituminous brothers. Demand here
has far exceeded the supply, and some sizes
are genuinely scarce. Stored stocks are be¬
ing let go gingerly and every effort made to
conserve the supply on hand pending better,
deliveries from the mines. Snow and colder
weather have brought their complications of
increased demand for quicker deliveries on or¬
ders.
THE BLACK DIAMOND
519
No. 25]
Philadelphia Trade.
A Scarcity of Cars Continues and Steam
Coal Rises to Record Figures as a
Natural Result.
Office of The Black Diamond,
1400 Land Title Building,
Philadelphia, December 16.
Three dollar coal, forty-five cars of it, was sold
through a middle house in this city Monday
morning. And by the time that this appears in
print the shipment should be well on its way or
in the hands of the receivers in New England.
Three dollars was the price asked by various
houses with free coal to move, but this sale was
actually recorded and delivered.
From railway sources the word has been sent
forth that the car supply shows signs of better¬
ment, but sporadic reports of this kind have been
heard before and the prices as set heeded them
not. Even had there been a material increase at
the mines noted, the heavy snow that came Sun¬
day would have offset anything of this encourag¬
ing nature which the railways might have to
offer.
Baltimore & Ohio sources have it that new
equipment is being rushed to Somerset and Clear¬
field counties, that cars on foreign lines are com-
in.g in and that rolling stock in the repair shops
is coming out. Yet the mines there that are get¬
ting above a forty-five per cent of normal sup¬
ply are the envy of their neighbors. The Penn¬
sylvania has an embargo on cars going into far
foreign territory and reports the release of many
cars in the lake trade. Still the operators on its
lines say “show us.”
New England is the “big noise” in this market
and the fact that wires were down and the mails
delayed on Tuesday showed the fact that these
buyers were not in the saddle. At the mines the
price around Osceola Mills, Altoona, Johnstown
and other buying centers ran.ged as high as $2.25
to $2.50 when this was written. This was a clear
advance over $2.10 to $2.25 as was quoted Mon-
day.
From a purely local viewpoint the brokers are
still the top of the heap and though prices have
gone beyond the best that those with imagination
figured it to go by the first of the year, yet there
is still an active and advancing market for free
coal that can be had. Some distinction is being
made in price to distinguish the better grades,
but the usual run of things is “the de’il take the
hindermost.” In the helter skelter to get fuel the
quality and character of the purchase has not
been cutting much of a figure. Western Mary¬
land’s have been quoted and sold as high as
Quemahonings and Miller veins — and there you
are.
The last week has seen quite a spurt in the
business at the piers. Over fifteen ships were
bunkered here in that time in excess of the same
period of last year. Coal tonnage for export for
the week also saw a gain over the amount of last
year, despite the cry for bottoms from all quar-
ters.
Shipments of Fairmont coals are now in open
competition with the Pennsylvania gas coals.
Quotations on these ranged from $2.10 to $2.25.
The Anthracite Situation.
It only takes a good fall of snow to set the
hard coal men as busy as bees in their offices and
they got what they were looking for this week.
The uncertain car supply, however, cau.ght them
at the end of the week when they were best pre¬
pared to make deliveries, so that the small yards
that were low in stocks got supplies without
much bother.
The independents who have firmly believed that
pea coal was good for its circular price of $2.50
did not wait until the first of the year to raise
prices. They now declare that by that time there
will be asked a premium on this size, providing
that the cold weather has come to stay. This is
going to solve the serious question of price cut¬
ting locally. Most of the dealers who have had
small sizes on contract will have new contracts
to make about the first of the year. With pea
coal ranging above $2.50 a ton it can be seen that
$4.75 will leave no great profit after freight and
apportionment for workmen’s compensation is
reckoned with.
All other grades are in .good demand with the
steam sizes holding firm at the circular and also
in line for an advance. It is declared that with
bituminous coal bringing outlandish prices the
steam sizes are bound to feel the effect, if only
from a point of comparison.
Philadelphia News Notes.
J. J Tierney of the Crozer-Pocohontas Com¬
pany, who spent the previous week in Boston,
arrived home last week.
J. T. Roberts, who is connected with the Wid-
noon Coal Company of Buffalo, called on the
coal trade here the early part of the week.
H; K. Stauffer, field man for B. Nicoll S: Co.,
after a short visit to the local ojces, left f(.'r a
trip to the regions this week.
W. P. McGuire of the Makoma Coal Company
and whose headquarters are in Harrisburg was in
the city this week.
Arnold Gerstelle, sales manager for Percy
Heilner & Son, returned the fore part of the
week from a business trip in the west.
D. B. Wentz, president of the Stonega Coke
and Coal Company, left Monday night for q
week’s visit to his company’s properties at Bi.g
Stone Gap, Va.
A. W. Calloway, president of the Davis Coal
and Coke Company, dropped into the local offices
of that corporation this week, while on his way
from headquarters in Cumberland, Md., to Nev/
York.
George Paul of the Commonwealth Fuel Com¬
pany of Pittsburgh was one of the trade visitors
of the week. Another from the Smoky City was
W. W. Greist of the Carnegie Coal Company.
C. W. Procter of the Skeele Coal Company of
New York was in town on business on Tuesday.
E. A. Ward of E. A. Ward & Co. was another
visitor from the Big Town.
W. A. Perry, known to his close acquaintances
as “the Commodore, paid a visit to the local trade
this week. Mr. Perry said that his company, the
Greensburg-Connelsville Coal and Cok,e Com¬
pany, intended to open an office in Pittsburgh in
the near future.
J. Herbert Milnes of the Milnes Coal Com¬
pany, Toronto, Ont., looked over the soft coal sit¬
uation from Quaker City angles. Mr. Milnes
said that the shortage in fuel had been felt in
the Canadian cities where the manufacture of
munitions and other articles for abroad was tax¬
ing industrial conditions to capacity.
John Hood, whose long years of connection
with the Davis Colliery Company here, was the
busiest hand-shaker in town this week. In his
own inimitable way he had to tell of his “vaca¬
tion in the Blue Grass” and his business projects
in the eastern part of Tennessee. Mr. Hood in¬
tends to winter in New York.
“Arrived short of coal” is the notation seen
with due regularity in the marine columns in
comment about various ships entering port.
Skimping and holding down the supply of fuel,
which is the bane of any captain’s existence, is a
common occurrence in these days when coal piles
abroad are at their highest valuation in all his¬
tory.
William Hollenback, who is the genial repre¬
sentative of the Amos Coal Company in this mar¬
ket, and is otherwise known as “Big Bill” Hol¬
lenback, when he gets into togs and coaches foot¬
ball teams, had more newspaper space accorded
him the past few weeks than the average run of
coal man gets in years. He was the storm center
in an election of the Athletic Association of the
University of Pennsylvania. And “Big Bill” won
out by 666 votes, the most accorded any .graduate
in years. Louis Maderia — a name slocely con¬
nected with the coal business — was also elected a
member.
The public is a funny critter. All summer long
daily papers carried in their news columns a
warning that certain conditions might be looked
for which would tie up the supply of coal for
the householder. The editor of the Public Ledger
wanted to know why the stiffening in price and
the tightening of supply. He asked an explana¬
tion of E. W. Parker, head of the Anthracite
Bureau of Information, and for brevity and con¬
ciseness it takes in the whole situation. Mr
Parker’s answer follows : “There is undoubt¬
edly a serious shortage in the car supply, due
largely to the inability to get cars now in transit
unloaded and returned to the mines. The Hazel-
ton Standard estimates there are 40,000 loaded
cars waiting discharge within 500 miles of New
York. We have no exact information on this
point. The supply of coal at tidewater por's
November 30 was sufficient only to supply the
New York market for two weeks. There are
lar.ge quantities in storage, but storage yards are
in the vicinity of the mining region. It is just as
difficult to get that coal to market as the freshly
mined output. The present shortage at retail
yards and in consumer’s hands is due entirety to
the fact that during the summer months, in spite
of repeated and urgent warnings, distributors and
consumers did not place orders, and less advan¬
tage was taken of discount prices in the spring
and summer months than in any year since this
practice was put into effect in 1901.”
Buffalo Trade.
Buffalo, N. Y., December 16. — {Special Corre¬
spondence.) — The December shipments of anthra¬
cite by lake have ended, according to representa¬
tives of the different shipping companies, the
total amounting to 106,926 tons. This is one of
the largest December totals on record, comparing
with 93,700 tons in the same month of last year
and 103,100 in the year preceding. The total ship¬
ments of the 1915 season were 3,863,072 tons, a
falling off of over 10 per cent from the preceding
year, when shipments were 4,386,226 tons. The
1913 shipments were 5,033,696 tons. The 1915
season got a good start in the way of large ship¬
ments, but after the first two months nearly every
month showed a decrease.
A better demand has started up from retailers,
owing to the severity of the weather this week,
which has been the coldest so far this winter.
Dealers have not been making any heavy demands
upon the companies lately, though the movement
has been fair for a number of weeks. Chestnut
has been in strong demand and scarcely enough
is available to go around. A car shortage still
exists and is expected to grow worse soon.
The bituminous market is showing increased
strength in this section, but shippers are confident
that a change is to occur within the next three
or four weeks. At present the great seat of activ¬
ity is in the east and all available coal is being
shipped in that direction. The market is reported
to be up 25c from the strong prices of a week
ago. Sellers say that coal is worth more money
today than at any time this year and some grades
areb ringing about 80c more than during the sum¬
mer. A good many operators are profiting by the
increased scale of activity and are only wishing
that they had a good deal more coal to sell. There
are low-priced railroad and other contracts which
take a large share of some companies’ output, and
besides that drawback a car and labor shortage
exists to further reduce the amount available for
sale. No letting up in tlie demand is looked for
in the near future, and it looks as though some
fancy prices would be paid in the local market
before very long. Consumers are slow to wake
up to the fact that eastern industries are absorb¬
ing immense quantities of coal and this will al¬
most inevitably mean a scarcity elsewhere before
many weeks. The car shortage is quite likely also
to become more acute soon.
Buffalo Trade Briefs.
W. H. Cox, of the coal company bearing his
name at Toronto, was a visitor here this week.
E. J. Skeele, president of the Skeele Coal Com¬
pany, spent two days at the office of the company
here last week.
J. P. Walsh, vice-president of the Pittsburgh
Coal Co., was a visitor at the company’s office
last week.
R. 1. lago and Mr. Troll, Jr., representing the
C. L. Ayers Coal Company, Cleveland, were here
this week and are reported to have disposed of a
large amount of coal.
Vice-President D. E. Russell, of the D. L. &
W. Coal Co., who went to Chicago a few days
ago to look after his trade, has been called home
this week on account of a death in his family.
D. W. McLennan, sales manager of the Alle¬
gheny Coal Company, who was recently ill with
rheumatism and away from business for a month,
has gone to the General Hospital, but expects to
be able to be at his duties within two weeks.
C. A. Storck, general sales agent of the J. B.
Jenkins Coal & Coke Co., has returned from a
business trip to Chicago and the west. He found
the market quite well supplied with coal and
conditions less satisfactory than in the east.
There is a great scarcity of tonnage in the
harbor, in suite of the fact that the fleet is the
biggest on record. Some of the coal shippers
wish to load a few cargoes on winter storage and
they find the vessels so tied up in various ways
that it is impossible to get any. Some boats want
to get away as soon as unloaded, to lay up else¬
where, some need repairs after unloading, and
others are in the market for sale. The demand
for vessels by purchasers is very great, and the
price offered is high. A steamer half a dozen
years old sold in Buffalo the other day for $40,000
more than it cost, and such a thing as a coal
charter is not going to stand in the way of a
thing like that.
520
THE BLACK DIAMOND
[December 18
Birmingham Trade.
Birmingham, Ala., December 15. — {Special
Correspondence.) — Locally with the retail yard
men domestic coal trade is good, hut as most of
the yards were fairly well stocked, the demand
upon the coal operators is not so good, and only
a few cars at a time is being ordered. The out-
of-town trade to the different parts of the state
is much better and a fair tonnage is being shipped
from the mines. All of the large producers of
coal are working upon full time; also some few
of the smaller companies, but much more could
be supplied if demand was sufficient.
The steam trade is much better than for some
weeks past, most of the railroads are taking
nearly full quota contracted for. The trade down
the river is assuming goodly proportions, and if
present indications of the river movement con¬
tinues, it will not be long before river shipments
will become quite an item to Alabama coal trade.
Fairly good bunkerage coal is being shipped to
the ports and takings at these parts is better
than it has been in many months.
Contract for coal for use in the next twelve
months beginning December 15, 1915, by the New
Orleans Street Railway Company, has been signed
with the Sloss- Sheffield Steel and Iron Com¬
pany. Shipments will be made by rail.
The Sloss-Sheffield Company had the contract
duririg the past twelve months, but it is under¬
stood" there was an advance in prices for the
coming twelve months. The contracts call for
a minimum of 180,000 tons, with a probability of
200,000 tons being taken.
The coal is being shipped from the Dora mines
in Walker County, and is one of several big
contracts this company has for the coming year.
It insures steady work at some of the big mines
of the district. The company has a big demand
for coal for its own furnaces and coke ovens.
The continued large sales of iron causes the
furnace people operating their own mines to get
out heavy production of coking coal. The out¬
put of this grade of coal is more satisfactory
than anv of the other kinds of coal mined in the
state. The continuous demand for coking coal
will be largely the means of a much larger an¬
nual production than had been anticipated.
Coke is in heavy demand with fine prices. Con¬
sumption very nearly up to the output, the excess
output is very small and very little coke is being
accumulated.
The- output at the big by-product plants at
Ensley, Fairfield, Woodward and Holt continues
good, and there is demand for every product.
Coke prices are strong, and there is need for a
large tonnage. No doubt is expressed now that
the annual figures as to coke production in Ala¬
bama will be the best there has ever been here.
A report will not down that the Sloss-Sheffield
Steel & Iron Company will in the very near future
consider the construction of by-product coke
ovens , spending near a million dollars on the
same, while the Gulf States Steel Company may
also become interested in such a project. J. C.
Mahen. president of the Sloss-Sheffield Steel &
Iron Company, accompanied by W. H. Goadby,
one of the principal directors in the company, will
spend this week in the Birmingham district,
coming from New York, and in addition to mak¬
ing a full inspection of the properties of the
company and looking at the improvements under
way at several of the plants, may consider the
advisability of by-product ovens. To meet the
demands for coke at its furnaces, in addition to
that received from a large number of beehive
ovens operated by the company, there are several
hundred tons of coke being purchased daily from
other manufacturers to use at the North Birming¬
ham blast iron furnaces. The Sloss-Sheffield
Steel and Iron Company has extensive coal prop¬
erties in the western part of the county, and it
is figured that the same will hardly be worked
out for a decade to a score of years and more.
Within a few years the by-product coke ovens
almost repay themselves.
F. O. B. F. O. B.
Bibb County Domestic —
Mines.
Birmingham.
Ked ash Cahaba Jump .
. $3.00
$3.30
Red ash Cahaba .Jump .
. 2.75
8.10
Red ash sream size .
. 1.20@1.35
Frt. rate 30c
Jefferson Countv —
Fancy steam Pratt .
. 1.75
2.00
Run of mine Pratt .
. 1.20(3)1.2.5
1.45(»1.50
Mary Lee lump .
. 1.40<®1.60
1.80(®1.90
Black Creek —
Fancy steam lump .
. 1.75
2.05
Washed nut .
. 1.75
2.05
Washed steam .
Frt, rate 30c
Mine run .
. 1.35@1.40
Frt. rate 30c
Jefferson Steam Coal —
Mine run .
Walker Countv Domestic
. 1.15(ffil.25
Coal —
Frt. rate 30c
Carbon Hill lump .
. 1.75
2.15
Carbon Hill egg .
. 1.65
2.05
Horse Creek mine run .
. 1.00(®1.20
Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . . 1,99 2,35
Steam sizes . 1,25@1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 3.00 8.30
Cahaba No. 3 lump . 2.75 3.05
Montevallo domestic prices range from $3,00 to $3.25.
Blacksmith coal, washed and screened, per ton, $2.00 to
$2.25 at mines, with different rates to various points.
Duluth Trade.
lowing car statistics for the other months of
the year, makes up the total shipments already
mentioned :
January .
February
March . . .
April . . . .
May . . . .
Tune . . . .
July ,,..
August . .
September
October ,
1915. 1914.
.24,990 21,639
.20,279 24,220
.10,800 16,083
.12,029 16,800
.11,401 13,275
.11,468 13,312
.12,855 15,099
.18,075 20,349
i24,712 24,347
.31,818 27,287
Duluth, Minn,, December 16. — (Special Cor¬
respondence.) — In the last week three cargoes
of coal arrived, and there are four more due,
which is contrary to the expectations at the
writing of the last letter to this department.
At that time only one more cargo was ex¬
pected, but unexpected charters shoved the
additional six this way. This — provided the
four boats supposed to be on their way here
arrive — will make the receipts of coal in De¬
cember forty-one cargoes or about 350,000
tons, as compared with 91,308 tons during the
month a year ago.
Just what the coal situation actually is just
now, with respect to a possible coal shortage,
is impossible for the layman to estimate, and
the coal docks men are disputing about it.
Some feel certain that there will be a shortage,
while others declare that there will be an
ample overage when the navigation season
opens up next spring; and these latter declare
the only danger is a shortage caused by strike
in the East. Estimating 5,500,000 tons of
coal on the docks now, the optimists, if such
they may be termed for convenience sake,
say that there will be lots of coal left. They
claim that the demand is not up to an average
of 1,000,000 tons a month, and the four light¬
est months of the winter are faced now, so
that they anticipate no particular danger.
Several of the coal companies claim that if
contracts are lived up to, Youghiogheny is go¬
ing to run pretty short and not far distant.
There is no advance in price as yet. Some of
the companies, but not all, have advanced the
price of Pocahontas egg and lump coal 25
cents a ton, making the price now $7 a ton.
The North Western Fuel company has ad¬
vanced the price of a special grade of soft
lump 25 cents, but other coal companies hav¬
ing special stock have not done so yet, but
may before long.
Parts of the Carnegie and Zenith coal docks
at West Duluth will probably be involved in
a fight between the states of Minnesota and
Wisconsin to decide taxable rights and also
in one over the ownership of riparian rights,
as a result of a decision recently given by
the United States court of appeals, and just
allowed to stand as final by the United States
supreme court, in a case involving the boun¬
dary between the two states. The suit was
that of the trustee of the George W. Norton
estate against Robert B. Whiteside of Duluth,
and the court decided that the natural channel
of the river constituted the boundary. The
docks of the two coal companies mentioned
built on the Duluth side of the bay, extend
beyond the natural channel and up to the ar¬
tificial channel, and, it is claimed, thus extend
into Wisconsin.
Lake Shipments in 1915.
Duluth, Minn., December 16. — (Special Cor¬
respondence.) — The shipments of coal from the
Head of the Lakes to interior points of the
Northwest, show, for the year from Jan. 1
to Dec. 1, a slight falling off from the same
period last year, but the difference is only
about 20,000 tons. The increases during the
months of September, October and November
this year over shipments in the same months
last year, were marked, and January also
showed an increase but the intermediate
months show figures considerably below those
of their corresponding months of 1914.
The total shipments during the year to Dec.
1, with comparative figures, were as follows;
Tons.
1914 . 7,138,016
1915 . 7,118,432
Decrease . 19,584
The shipments during November this year
and last were ;
Tons. Sars.
1915 . 1,160,256 36,253
1914 . 901,664 30,052
Increase . 198,592 6,206
This added to the tonnage computation, fig¬
ured at thirty-two tons to the car, of the fol-
Twin Cities Trade.
i\IiNNE.\poLis AND St. Paul, December 16. —
(Special Correspondence.) — Five million bushels
of wheat were on track at the terminals in Minne¬
apolis last week and for several days it looked
as if there would be an old-fashioned congestion.
The railroads, by extraordinary efforts and due
to lighter receipts at country elevators, did not
get in as bad shape as expected, although the
effect of these heavy receipts is being felt with¬
in the switching limits of the Twin Cities.. Coal
cars are sometimes a couple of weeks getting
to dealers, and nearly all the owners of large
rail yards are anticipating their requirements to
some extent. One thing that materially helped the
situation was the mild weather. When the con¬
gestion was at its worst, the temperatures were
ordinarily those experienced in June, so that the
railroads had every advantage in getting away
from what might have been a serious situation.
Demand for coal of all descriptions this week
has been more active than for nearly a month.
There is no snow in this part of the country
but the thermometer registered down nearly to
zero Tuesday and this stimulated business. A
few orders came in that day but yesterday busi¬
ness was in much more substantial volume, and
the industry showed nearly as much “pe^ as it
did in October. The cold weather Tuesday, how-,
ever, was not as severe as that experienced a
year ago. The temperature at that time went to
eleven below zero, which is colder than any time
this year since the first of February.
In the dock trade much interest is being felt
in the war situation abroad. The demand for
coal in France may be a vital factor in the dock
trade next spring if that country carries out
its plan of establishing a government fleet for the
transportation of American coal, and other Eu¬
ropean countries join in such a movement. Dock
interests realize that with all of Europe bidding
against them there is every reason to expect much
higher prices at the mines and correspondingly
higher prices for lake shipment.
Bituminous coal of all descriptions is in fair
supply on the docks, the only noteworthy excep¬
tion being Pocahontas egg. This grade is very
scarce and while prices have not yet advanced
appreciably, dock companies are having difficulty
in securing a sufficient supply to meet their cur¬
rent orders.
Current market prices at wholesale on loading
grades of coal sold in the Twin Cities are as fol¬
lows :
ANTHRACITE.
F. O. B. F. O. B.
Duluth Minneapolis
and and
Superior St. Paul
Grate . $6.60 $7.80
Egg . 6.85 8.05
Stove . 6.85 8.05
Nut . 7.10 8.30
Pea . 5.50 6.70
Buckwheat . 4.00 5.20
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.40
Splint, dock run . 3.10
Hocking, screened lump and stove 3.30@3.40
Hocking, dock run . 3.00
Youghiogheny, gas, lump and stove 3.30@3.40
Youghiogheny, gas, dock run . 3.10
Pittsburgh vein, lump . 3.30@3.40
Pittsburgh vein, dock run . 3.00
Pocahontas, screened lump or egg 4.75
Pocahontas, screened lump and
egg mixed. . . 4.50
Pocahontas, mine run . 3.25
Cannel, lump . 5.25
.Smithing, bulk . 4.25
Smithing, in 100 lb. sacks . 6.00
Briquets, anthracite . 5.00
Briquets, smokeless . 5.00
$4.26@4.36
4.06
4.26@4.36
3 9€
4.26@4!36
4.06
4.26@4.3(
3.96
5.71
5.46
4.21
6.21
5.21
6.96
5.96
5.96
In the Illinois trade the range of prices on
southern Illinois product on the various sizes is as
follows :
Franklin County —
Lump, egg and No. 1 nut . $1.65@1.75
No. 2 nut . 3.66@
No. 2 nut . 1.50@1.60
-inch screenings . .85
Run of mine..,...._ . 1.15@1.25
Williamson and Saline Counties —
Lump, egg and No. 1 nut...... 1.65@1.75
No. 2 nut . 1.40@1.50
2-inch screenings . .85
Run of mine . 1.15@1.25
$3.95@4.05
3.76
3.66@3.76
3.01
3.45@3.55
3.95@4.05
8.50@3.66
3.01
3.45@3.55
The Black Diamond
_ _ _ _ _
Vol. 55. No. 26 80LUMBUS DECEMBER 25, 1915 S^sIurgh $3.00 Per Year
How Chicago Began to Study Cost Accounting.
The following is one question the retail dealer
will have to answer for himself — the associations,
the trade papers, the legislatures and the city
councils cannot answer it for him :
“Are you justified in not knowing what it costs
you to do business merely because your neighbor
does not know, does not want to know, and will
not learn?”
In a word, is “the cost of doing business” a
subject which must be studied by all, or it can’t
be studied at all. Taking a parallel case, must
we abandon the schools and do away with our
whole system of education merely because a few
blacks and a few mountain whites will not learn
to read and write?
That was precisely the question which con¬
fronted the retail coal men of Chicago who were
banded together in the Chicago Coal Merchants’
Association. From the time when Milton E. Rob¬
inson was president of that organization and
hence from the time when it was little more than
a commercial debating society, the question “what
does it cost to do business” was one of the themes
which came up for periodical discussion. The
writer of this article remembers distinctly some
of those early sessions of that new association.
Mr. Robinson would suggest as the subject of the
day’s debate, “What does it cost to do business?”
Then he would call upon some of the members to
arise and tell what it had cost them the preceding
year. We have a vivid recollection of one meet¬
ing in particular. One retailer, who thought he
was a good business man, arose and said that his
costs had been sixty-eight cents a ton. This man
owned a rail yard and extensive equipment. He
did better than 50,000 tons of coal business a
year.
The next man to arise was of the same kind.
He said :
“You have got me beat. It cost me seventy-
three cents a ton.”
The third man up went to the subject with the
same candor when he said that both of the oth¬
ers bettered his record, which seventy-eight cents
a ton.
At this point A. J. Bunge, with customary
abruptness, got into the discussion with :
“I am not hard up today, and I don’t want to
take anybody’s money, but I will bet any one of
you three men $100 to $5 that what he thinks were
his costs are not correct within fifteen cents a ton.
I’ll bet the fellow who named the lowest figure
isn’t right within twenty cents a ton. I can do
business as cheaply as any one of you. It costs
me ninety-two cents a ton now and the cost is
going up every day.”
The challenge was too pointed to pass without
notice. Everyone in the room knew that Mr.
Bunge was a good business man. At least he was
doing two to three times as much business as
most of them. His blunt statement that they were
off in their calculations as to cost by fifteen to
twenty cents a ton made them blink. It explained
to some of them why at the end of the year they
never had any of it to spend, whereas they thought
they were making money. In view of what Mr.
Bunge said, most of them realized that what they
thought was a profit was only a bookkeeping
method which concealed a loss.
Two or three months after this incident the
old debating society came pretty nearly losing its
character, because some of the retailers wanted
actually to begin to study what it cost to do busi¬
ness — to do something besides talk. And they
really tried for a month or more to learn. They
found, in the end, that Mr. Bunge was right.
The average cost for the city of Chicago was
nowhere near sixty-eight, or seventy-three or
seventy-eight cents a ton ; it was somewhere be¬
tween ninety-two and ninety-three cents, as Mr.
Bunge had said. That was eight years ago. The
cost today is above $1.05.
When an effort was made to use this informa¬
tion the difficulty arose. It was the big stumbling
block in Chicago. From letters received from all
parts of the United States it is the stumbling
block of the coal trade generally. That is, the
old debating society thought it would be a good
After a Disheartening General Debate, a
Few Cut Loose from the Crowd and the
Others Followed the Lead — What Other
Cities Do.
thing to introduce a uniform system of account¬
ing. Still, it thought it could not do anything
unless everyone was in the band-wagon. It
thought there was no use of having an account¬
ing cost system unless everyone used it. It
thought and decided it wasn’t worth the while of
the association to spend its time and money to get
up that cost system unless everyone wanted it and
was willing to pay his share. Especially was this
true unless everyone was willing to use the sys¬
tem when it was compiled.
Of course, everyone would not go to school;
therefore everyone would not pay for his school
books. As a natural and the only possible result,
the old debating society got up to the edge of a
mighty important and interesting subject and then
abandoned it. It did so because the universal
adoption of the system was clearly out of ques¬
tion.
Then followed a period — it seems that such a
thing is almost impossible, but it is true — of six
or seven years, when the subject was always on
the tips of the tongues of a few retail dealers
like Homer D. Jones, but nothing was ever done.
Every once in a while the cost and systems com¬
mittee would make a report. This report would
urge the importance of the subject and end up by
saying that something must be done. The rest
of the members would grin at the effort to revive
the old topic, and then would put on their hats
and walk out. For all those years Mr. Jones was
a pleader without an audience.
After a disheartening experience of this kind,
he was about to give up the idea. He thought,
even as the association thought, that it was not
worth while to do anything at all unless every¬
body was in. It was impossible to get everybody
in. That is the only reason why nothing was
done.
Incidentally the retail dealers of Boston, Phila¬
delphia and the small and large cities of Ohio,
Indiana and all over the other states are in ex¬
actly the same position today. Some retailers
want to talk about the cost of doing business and
to urge united action. The others grin, put on
their hats and go home. Because they can’t get
the others interested, and because the subject
can’t, therefore, be handled by all the retailers of
one locality, those who have a saving idea on the
subject become disheartened and are ready to give
it up, or have actually done so.
At the critical moment, as it seems, Homer D.
Jones of the Western Fuel Company of Chicago
— chairman of the cost and systems committee of
the Chicago Coal Merchants’ Association — got a
new idea. He said one day at the regular semi¬
monthly meeting :
“We have got to get away from this old notion
of ours that one hundred per cent of this associ¬
ation must study this subject of costs in order to
have it come up for any consideration at all. We
must abandon the idea that we can’t do anything
toward uniform accounting unless all do it. If
we wait for everybody to come in, we will wait
forever and end our days in precisely the same
position as we are now. I’m going to cut loose
from the bunch. I’m going to get together those
in the association who are interested in knowing
what it costs to do business. Even if there is
only one other member who wants to study costs
and if he will come down here at an appointed
time, he and I will hold a meeting. 'If there are
two, it will be just that much better. If we can
get five or ten it will be fine. But I am not going
to wait for the 250 members of this association
to get down to business before we start to study
costs as they should be studied. As chairman of
this committee. I’m going to call a meeting for
next Friday afternoon. We’re going to hold a
meeting if nobody but A1 Bunge and myself at¬
tend.”
At the conclusion of that short speech, Mr.
Bunge said that he would be on hand. Charles
Dreiske announced that he would be present, and
so it ran until something like ten members h^d
joined the movement. Before Friday afternoon
this number had been swelled to twenty-five.
Everything considered the result was wholly un¬
expected.
When, on the following Friday, the little band
of retailers got together to discuss what it co^s
to do business, some vitally important informa¬
tion began to come out. One man had a simpH^
fied method of getting the information on the
books and getting the bills sent out. Another one
had an ingenious way for separating yard labor
cost so that it was easy to divide the cost for
loading the wagons from the cost of putting coal
into and taking it out of storage. Another had a
simplified time clock method by which he found
the cost of delivery, etc.
At first it was supposed that this thing could
be worked out by departments. That is, out of
the twenty-five men some were most interested in
the cost of sales, others in the cost of loading,
others in the cost of yard labor, etc. It was
planned to have each man devote his attention to
the one topic in which he was most interested.
Therefore, primarily it was decided to divide the
general topic up into six departments and have a
committee representing each. These different
committees accordingly were appointed and
worked for about three weeks.
However, the instant the committee tried to
segregate the cost of its particular theme from
the general cost of the yard it found that prac¬
tically an impossible task. So many activities
around the yard overlap with other activities —
and must do so or the expense is going to in¬
crease inordinately — it was found necessary to
consider all costs as practically one. That is, in¬
stead of having a separate selling cost, delivery
cost, storage cost, etc., it was found that a true
accounting system could not be gotten together
unless the yard operations were considered as a
whole.
Thus the instant the retailers came down out
of the air and began to discuss the thing in sav¬
ing detail, a big discovery was made as far as
they were concerned. This gave the students of
this question a real program to work out and
something definite to do. Thereafter the six
committees resolved themselves into a commit¬
tee of the whole. This larger committee started
to work on a general accounting system for the
yard.
The first thing they found was that it was a
pretty big topic to handle and they wanted, of
course, to get a short cut. The best short cut
was to call in an expert accountant who really
knew the subject thoroughly and who could de¬
vise a system that would fit the conditions of the
different yards. They decided, therefore, to em¬
ploy a certified public accountant and did so. He
held a meeting with the general committee about
two weeks later. At that meeting it was decided
that seven of the retailers should pay a certain
sum for the first year. This would cover the cost
of installing the system and the necessary super¬
vision of that system until it was in actual work¬
ing order.
When this has been done, the results will be
turned over to the association. Then the forms
will become the property of the association and if
any other dealers want to use them, arrange¬
ments can be made by which they, cheaply, can
have the installation made and the introduction
of the system supervised.
After this experience with the Chicago retail¬
ers, the editors of this paper prepared and sent
out a letter to quite a number of retail dealers in
all parts of the country. This letter asked
whether any similar movement had ever been
started in their community of the person ad¬
dressed. Candidly we did not expect that it had
liecn, because we knew about what the situation
(Concluded on page 528.)
522
THE BLACK DIAMOND
[December 25
An Eastern Retail Cost Accounting System.
WEEKLY OPERATING EXPENSES.
FIXED EXPENSES.
A week or so ago we went fishing for informa¬
tion about cost systems used by retail dealers.
We got one that was interesting.
Perhaps that isn’t just exactly the right way to
put it. We found that the dealers in Chicago
were beginning to do a big and sensible thing in
connection with cost systems. We wanted to pass
the word along. So, Yankee fashion, we told
what we had to say in the form of a question.
If anybody else had information to the same
point, we were mighty glad to get it. That would
broaden the whole field of discussion, even though
it was not necessary. Thus fishing the whole
North American continent by a circular letter, we
might draw in some good accounting systems, but
we would tell many that such a thing was pos¬
sible.
We were rewarded by one which comes from
S. P. Burton of Boston. Burton & Co. have a
dock at Providence. This dock does a retail busi¬
ness and for the purpose of accounting for the
coal received and sent out, a regular system has
been installed.
Two things stand out very clearly in this set
of forms.
First, this firm knows that if it is going to
account for everything the system must be com¬
prehensive. So, its forms are elaborate and even
a recapitulation of the record of the books takes
six sets of forms, each of which fills two small
pages or one big page.
Second, it knows that to get a comprehensive
idea of any one cost, it must have a proper sub¬
division of that cost into the departments where
the expense originates. Therefore, it makes four
general subdivisions of the cost statement and
details thereunder the things which properly make
up that expense.
With that general statement of the Burton pol¬
icy, the forms will explain themselves. In repro¬
ducing these forms, one explanatory note is nec¬
essary. That is ; In some months there are five
weeks. Therefore, the form which is to include
the whole month and to detail it by weeks should
have five columns for the weeks with one column
for the grand total. In the Burton form there are
five columns for the weeks. We reproduce only
one of them; to reproduce the form, the other
four have only to be added in. These forms are
as follows:
WEEKLY OPERATING EXPENSES.
ACCOUNT DISCHARGING.
Supplies . 7
Veterinary .... 8
Accid’t insurance U
Office and stable
insurance ... 10
Reserve fund.. 11
12
7
8
9
10
11
12
Total
Yard men . 14
Office . 15
Sundry expense 16
Supplies . 17
Ferry expense. . 18
19
13 13
TOTAL TONS CARTED.
. 14
. 15
. 16
. 17
. . 18
. 19
Total .
.20 .
. 20 _
.
(J)wn trucks...
.21 .
. 21 _
Auto cars .
.22 .
. 22 _
Hired trucks. .
.23 .
. 23 _
Hired teams..
.24 .
. 24 . . . .
Total carting. .
.25 .
. 25 _
Week Ending— ^
-Month’s Total— ^
Main Office. No.
Tons Sold.
Memorandum
of Cost —
Amount. PerTon.
Amount.Per Ton.
Items—
Salaries .
1
1
Executive exp..
2
2
Office rent .
3
3
Sundry office ex-
penses .
4
4
Legal expenses.
5
5
Advertising . . .
6
6
Telephone ....
7
7
Salesmen’s exp.
8
8
Mileage .
9
9
Bond insurance
10
10
Office supplies. .
11
11
Miscellaneous
insurance . . .
12
12
Reserve, bad
debts .
13
13
Contingent tund
14
14
Building coal
pocket .
15
15
16
16
17
17
Account Housinc
Bitum. tonnage 26
Cost . 27
26
Anth. tonnage. 28
Cost . 29
28
29
Cost of Housing
Number tons... 30
Cost . 31
30
31
Total cost.
32
32
WEEKLY OPER.VTING EXPENSES.
ACCOUNTS MISCELLANEOUS.
Totals .
18
. 18 .
Wharf Expense.
No. Tons Sold.
Items —
Rent .
19
. 19 .
Fire insurance.
20
......
. 20 .
Taxes .
21
. 21 .
Repairs and sup-
plies .
22
. 22 .
Acci. insurance
23
. 23 .
....
Anthracite ins.
24
. 24 .
25
. 25 .
Totals .
26
.
. 26 .
.
WEEKLY SHIPMENTS.
TONNAGE.
-Week Ending-
-Month’s Total-
Number Tons Via
Car, Memoran¬
dum of Cost —
-Week Ending—
-Month’s Total-
Tonnage. Total.
Tonnage. Totai
Amount. PerTon.
Amount. PerTon.
Items —
Wages .
. 1 .
1 .
Repairs .
. . 2 .
2 .
Supplies . . . .
. .. 3 .
3 .
Switching . . .
. . 4 .
4 .
Expense . . . .
. . 5 .
5 .
6 .
6 .
Totals .
. . 7 .
7 .
Steam Coal — •
Deliv’d by teams
Delivered on cars
Sold at yard. .
Sold on dock. .
Sold on lighter
Total . 7
Items—
Account Pick-Up.
No. Tons Re¬
moved —
Domestic Coal — ■
Deliv’d by teams 8
Delivered on cars 9
Sold at yard.. 10
Sold on dock.. 11
Sold on lighter 12
13
8
9
10
11
12
13
^ — We’ek Ending—^
^Month’s Total — ^
Number Tons
Discharged
M e m o r a n-
dum of Cost.
Amount. Per Ton.
Amount. PerTon.
Power .
Wages .
Repairs . . . .
Supplies . .
Expense . . .
. . . 8 .
. . . 9 .
. 8 .
. . 0 .
Total . 14 .
. 14 .
. . . 10 .
... 11 .
. . . 12 .
. 10 .
. 11 .
. 12 .
Storage Coal —
Deliv’d by teams 15 .
Delivered on cars 16 .
. 15 .
. 16 .
Totals . 13
13
Items — ■
Wages .
Supplies .
Coal .
Boiler and liabil¬
ity insurance.
Repairs . 5
Water . 6
Oil . 7
Lights . 8
Sundries . 9
Suspense . 10
Tornado insur¬
ance . 11
Discharging re¬
serve . 12
13
2 .
3 .
2 ...
3 . ..
ings. No Tons
Sold—
Total . . . .
21 .
. 21 .
4 .
4 . . .
Items — ■
Totals . . . .
. 22 .
6
7
8
9
10
11
12
13
Totals . 14
14
-Vccount Screen-
Sold on dock. . 18
Sold on lighter 19
20
17
18
19
20
Power
Wages .
Repairs ,
Supplies
Expense
14
15
16
17
18
19
14
15
16
17
18
19
Elk Horn Coal.
Totals
20
20
WEEKLY OPERATING EXPENSES.
ACCOUNT WOOD.
Account Trim¬
ming —
-Week Ending-
-Month’s Total-
Bitum. tonnage.
15 .
. 15 .
Cost .
16 .
. 16 .
Anth. tonnage..
17 .
. 17 .
Cost .
18 .
. 18 .
Total tonnage. .
19 .
. 19 .
Average cost...
20 .
. 20 .
Total cost .
21 .
. 21 .
No. Cords Sold.
WEEKLY OPERATING EXPENSES.
ACCOUNT CARTING.
-Week Ending— / — Month’s Total-
No. Tons Carted —
Own teams. .
Own trucks. .
Auto cars ....
Hired trucks.
Hired teams.
Total tons carted
Memorandum
of Cost —
Per
Amount. Cord.
Per
Amount. Cord.
Items —
Power .
1 .
1 .
Wages .
2 .
2 .
Repairs .
3 .
3 .
Supplies .
4 .
4 .
Expense .
5 .
5 .
6 .
6 .
7 .
7 .
8 .
8 .
Totals .
9 .
9 .
Automobile Oper¬
ating. No. Tons
Sold—
Items —
Memorandum of
Cost —
Amount. PerTon.
Amount. PerTon.
OWN TEAM TONNAGE.
Items —
Teamsters ....
1
1 .
Feed account..
2
o
Stable men....
3
3 .
Shoeing .
4
4 .
1 ights and water
r)
5 .
Repairs .
6
6 .
Wages ....
... 10 .
. 10
Repairs . . .
..1 11 .
. 11
Supplies . .
... 12 .
. 12
Insurance .
... 13 .
. 13
14 .
. 14
15 .
. 15
16 .
. 16
17 .
. 17
18 .
. 18
19 .
. 19
At a meeting of the Elk Horn Coal Corpora¬
tion, recently formed by the merger of the Elk
Horn Fuel Company, the Elk Horn Mining Com¬
pany and the Mineral Mining Company, Clarence
W. Watson, George A. Baird, Johnson N. Cam¬
den, George W. Fleming, J. M. W. Stewart, Ed¬
ward Cornell, S. D. Camden, John E. Bucking¬
ham, D. A. Langhorne, C. H. Slemp, James C.
Fenhagen, George T. Watson, A. E. Nusbaum
and Walton Miller were elected directors.
Qarence W. Watson was chosen chairman of
the board; George W. Eleming, president; John¬
son N. Camden, George A. Baird and A. E. Nus¬
baum, vice-presidents; J. W. M. Stewart, secre¬
tary; J. E. Caulfield, treasurer and assistant sec¬
retary. The executive committee consists of
Messrs. C. W. Watson, chairman; G. W. Flem¬
ing, J. N. Camden, S. D. Camden and G. T. Wat-
son.
The Elk Horn Coal Corporation will operate
and develop further its large coal tracts in east¬
ern Kentucky. A successful sale of $4,000,000
bonds was made within the last fortnight, largely
to Baltimore interests.
Totals
20
20
J. J. Hobbs, the New York coal exporter, has
chartered in past month eight schooners to take
coal to Argentine and Brazil. Mr. Hobbs re¬
cently chartered the schooner Edward J. Law¬
rence. which made a record trip (thirty days) to
Barcelona, Spain, with five thousand tons of
Pocahontas.
No. 26]
THE BLACK DIAMOND
523
Handling Anthracite
The shipping season of 1916 will see some big
improvements in the vessel loading methods of
anthracite at Buffalo.
The L. V. R. R. Company has almost completed
their new plant at Tifft Farm, and it should be
thoroughly tried out and ready for regular serv¬
ice at the opening of navigation next spring.
Recently the Delaware, Lackawanna & Western
General View of Gravity Yard, Oi^rator’s House
Over tlie TTnloaders and Inclined Conveyor
House. Taken from Top of Present Iiehig-h
Valley Dock.
Railroad Company started dredging a new slip on
their dock property in preparation for an entirely
new vessel loading plant.
From what can be learned locally in Buffalo,
the plans for this new plant are now completed.
It is, however, generally understood that a typical
car dump is to be installed. That is, the familiar
type in use at Hoboken by the Delaware, Lacka¬
wanna & Western Railroad and at Perth Amboy
by the Lehigh Valley Railroad for hard coal, and
Cleveland and other places for soft coal.
Where the general conditions of the various
companies are apparently entirely similar it is
The Two Vuloaders, Four Dxtra Hoppers for Self-
Cleaning' Cars, and Dower End of Inclined Con¬
veyor House. Dehig'h Valley Dock, Buffalo.
interesting to note how the methods of meeting
these conditions differ.
As has been stated previously in The Black
Diamond, it is a great advantage to the railroad
companies to haul their box cars back to Buffalo
loaded instead of empty. The cars go east with
grain and other products from the west, and
unless loaded with anthracite in Pennsylvania,
many are returned to Buffalo empty.
Two years ago when the preliminary plans
Car on Unloader Platform Tilted to Its Extreme
Position.
Over Loading Docks.
were being worked up for the Lehigh Valley
dock, the tirst consideration was to get a method
of handling box cars cheaply and quickly, with¬
out breaking the coal any more than was abso¬
lutely necessary. The result is that the new
Lehigh Valley system is built with the box car
unloaders as the central and most important fea¬
ture.
As a contrast to this, the Lackawanna is plan¬
ning a typical car dump which will handle only
open cars, the box cars apparently being a sec¬
ondary consideration, and will probably be han¬
dled by one of two methods. Either the coal will
be transferred from box to open cars, and then
the open cars be put over the car dump, or have
a box car unloader at the dock and elevate the
coal with belt or elevator discharging it into the
same chute through which the open car coal is
loaded.
If, as is anticipated, the amount of box car coal
is increased to 50 or 60 per cent of the whole
instead of 20 percent as at present, it is easily
The Dust Over the Boat Illustrates to Some Ex¬
tent the Excessive Breakag'e of Coal Under
Present Doading Methods.
seen that this transferring from one kind of car
to another will prove a very expensive operation.
Expensive from an operating standpoint but more
expensive because of the increased breakage of
coal due to the extra handling. The combining
of an open car dump and a box car unloading on
the dock, all of the coal discharging into the
same chute, ought to prove very satisfactory, if
the details can be worked out.
Face of Present Dehig'h Valley Dock Showing'
Telescopic Chute, 'Which Is Part of the New
System, in Its Raised Position.
The new Lehigh Valley system consists in a
large gravity yard, with two car unloaders at
ground level to be fed by four tracks, and four
lioppers in addition to those under the car un¬
loaders, with a track for each. These four hop¬
pers are to receive the coal from the self-clean¬
ing cars. The car unloaders are to handle all
box cars, and flat bottom open cars with open¬
ings or gates in bottom which are not self clean-
ing.
The six hoppers discharge onto two pan con¬
veyors each 5 feet wide. These conveyors of
about 300 feet centers carry the coal up a grad¬
ual incline and discharge over a large lip screen
into an open chute and thence through a tele¬
scopic chute into the boat.
The degradation or breakage of coal is to be
kept to a minimum by having the hoppers which
are not deep kept well filled and the chute and tel¬
escopic chute filled so that the coal movement is
a flow instead of a drop.
Each car unloader should unload box cars at
the rate of twelve an hour or five minutes to the
car; the flat bottom open cars at a much faster
rate; and as is well known the self cleaners by
Box Car on the Unloader in a Tilted Position. It
Is Planned to Take the Grain Door Boards Out
of the Cars Before They Are Placed on the
Unloader. The Conveyor Shown in the Picture
Is for Conveying the Coal That Falls Out of
the Cars on Removal of Doors, to the Main
Hopper.
merely opening the gates discharge in a half min¬
ute or less.
The rated capacity of the two conveyors is
18,000 gross tons in ten hours. It is expected to
load readily under normal operating conditions
10,000 to 12,000 tons in ten hours.
The machinery has been all turned over and
as a whole promises to work satisfactorily. There
will undoubtedly be a number of changes made
before the plant is accepted. The box car un¬
loaders are not as efficient as they can easily be
made by some moderate changes and there are a
number of other smaller features to be adjusted
and modified.
The fact that this is the first plant of its kind
designed primarily for the efficient unloading of
box cars makes it extremely interesting. The box
car unloader after it is once demonstrated on a
large scale as it will be in Buffalo, should have a
wide field. There are a number of other prod¬
ucts transported in box cars which, under the
present methods, are slow and expensive to un¬
load grain being the most important of these. The
unloader is as suitable for unloading grain as
anthracite and it is believed that the operation of
this Lehigh Valley plant will be followed with
much interest by grain men as well as by coal han¬
dling concerns.
November Anthracite Increase
The production of anthracite in November is
estimated at about 250,000 tons more than that
of November a year ago. As this increase is
indicated after several months of low produc¬
tion, a shortage of approximately 2,500,000 tons
will remain when the total figures for the first
eleven months are compared with those of last
year.
When the official figures of shipments to mar¬
ket are announced by the Anthracite Bureau of
Information at Wilkes-Barre next week, it is
probable that the tonnage for November will be
in the neighborhood of 6,200,000 tons. The ship¬
ments in November, 1914, were 5,928,286 tons.
Operators attribute the small production of
anthracite so far this year to the industrial de¬
pression of last winter reflected in the purchasing
power of the consumers. The amount of coal
shipped to market in 1914, was 68,342,601 tons.
•An economy by the consumer of five per cent on
his anthracite fuel bill would make a difference
of over 3,400,000 tons. The public failed to take
advantage this year of the spriag and summer
discounts when anthracite can be bought at the
lowest figure.
Anthracite shipments for November were 6,297,-
215 tons, an increase of 368,929 tons over Noveni-
ber of last year. For eleven months, the decrease
is 2,500,000 tons.
[December 25
524
THE BLACK DIAMOND.
This View Gives a Suggestion of the Method of Construction of the Barker Pocket.
Barker Company’s Circular Concrete Coal Pockets
The concrete .siio has moved to town. Some
one discovered that it was equally as good for
storing coal as for preserving green fodder for
stock. So, coal dealers are taking advantage of
this fact and are erecting circular concrete bins
or coal storage pockets — nothing more nor less
than reinforced concrete silos, so popular in
many farming and dairying sections.
Among the latest dealers to erect structures
of this kind is the Barker Lumber & Fuel Com¬
pany, Watertown, Wis., who engaged a silo con¬
tractor to construct the four tanks 18 by 46 feet
each, shown in the accompanying illustrations.
These structures are independent of each other,
although standing as closely together as possible
to permit operating the silo form while con¬
struction was in progress.
Each rests on a reinforced concrete footing 18
inches thick and 4 feet below ground level. Walls
are 6 inches thick throughout, reinforced both
vertically and horizontally, in the first case by
'/^-inch rods, placed every 2 feet around the struc¬
ture at the center of the wall and in the latter
case, by J^-inch rods 6 inches center to center.
Here is a situation which will appeal to every
employer; that is why I am answering it here
instead of by letter to the inquirer. The letter
comes to me from a New York reader who re¬
quests that I withhold his name:
“Here is a case for you and your readers to
consider together. Up to a month ago we em¬
ployed a man as collector. We did not bond him,
believing him perfectly honest. He collected a
large amount of our accounts and had been with
us for five years. His last collection was made
about a month ago, and consisted of about $150.
He came in at the close of the day and said he
had lost it. Ordinarily we would have accepted
his word, but I noticed liquor on him and I had
already heard some things about his manner of
living. I questioned him about the manner of his
loss and his story did not seem convincing. We
therefore discharged him on the spot. He applied
to another house in the same line for a position
and gave our name as reference. A member of
the firm called at our store and asked about him.
and I told him the whole story. I stated what I
had learned about the young man’s private life,'
also about noticing the liquor and the story about
losing the money. I told him frankly that I sus¬
pected the young man of having stolen the money
instead of losing it. As a result of what I stated
the young man did not get his position. I believe
he would have gotten it if I had given him a good
reference. He has now brought suit against our
house, charging defamation of character and asks
heavy damages. I always believed that a former
employer had a right to tell his opinion of a for¬
mer employe, but if there is anything in this suit,
I appear to have been mistaken.’’
You are not mistaken, and in my judgment
there is nothing in the suit. The only chance your
former employe has of getting damages from you
One of these tanks is divided into four com¬
partments which are equal segments of a circle,
these compartments being formed by partitions
made of 2 by 4’s spiked together flat and se¬
cured to the walls at the ends by bolting. The
tanks have no floors, provision having been made
to spout the coal into wagons by gravity by filling
the tanks with well-compacted cinders to the
necessary level (8 feet above ground) so that
the coal would flow from the wood chutes built
into the silos on opposite sides. As each tank has
two such chutes it is possible to load eight
wagons at one time. The wagon ways are roofed.
The structures stand in a row running east and
west, with railroad trackage at the west end, thus
permitting spotting of cars alongside the un¬
loading hopper and conveying apparatus which
are housed in a wood frame structure that ex¬
tends across the top of all tanks, thus permitting
any desired distribution of coal when unloading.
Fire risk has been largely eliminated as regards
possible injury to the structures, and consequent
reduction of insurance rates and elimination of
the necessity for insurance on the structures have
followed.
is to prove that in what you said you were actu¬
ated by malice. You know whether you were or
not. If he can prove that, he may have a chance.
Let me explain.
Ordinarily one man may not say scandalous
things about another, even if they are true. If
they are not true, they always give cause for a
civil damage suit, and even if they are true, the
law holds that they tend to a breach of the peace,
and makes the person uttering them criminally
liable.
But there are certain exceptions to this rule,
called privileged' communications. One of these
is just the sort of communication described in the
above letter — that made where a former employer,
when asked for a reference as to a former em¬
ploye, expresses his opinion about him. Even if
what he says would ordinarily be slanderous, and
— if he acts in good faith — even if what he says
is not true, the employer is protected and no
action can successfully be brought against him
for slander or libel.
In such a case the employer can even go fur¬
ther than telling merely what he knows about his
former employe. He can tell what he has heard,
even though he has not investigated it, and does
not know it to be true. Even if these rumors
which he repeats prove to be completely unfound¬
ed and untrue, the employer is not liable for re¬
peating them — if he acts without malice and in
good faith.
The legal reason for permitting the employer
so much latitude is that an employer who is
about to hire somebody is entitled, as a' sort of
social obligation, to have all the information he
can get about that person. As a leading case
puts it:
“Giving information as to the character and
capabilities of a former employe is not a legal
obligation enforced by law, but the law recognizes
its existence as a social obligation which cannot
be performed unless it creates a privileged occa¬
sion. When inquiry is made of a person as to
the character and capabilities of a former em¬
ploye, the person to whom the inquiry is ad¬
dressed would not do his whole duty if he should
confine his answer to facts which he knows of
his own knowledge. Nor would he do his whole
duty if he should confine himself to giving
information which he has fully investigated. In¬
deed, he would fail in doing his full duty if he
should omit to impart any material information
which has come to him, even if he has not at¬
tempted to investigate it at all. He must be care¬
ful, however, to state that he is giving it as in¬
formation, and not as fact, because if he gives it
as fact and it proves to be untrue, he is liable.”
But woe betide the employer who allows dis¬
like, hatred, or resentment to color his report
about a former employe. The law is always
severe with such, and these cases are not infre¬
quent. Especially where an employe has left
against his employer’s will, or after a quarrel, he
is apt to try to get back when asked’ by a pro¬
spective employer for a reference. Even though
what he says would have been completely pro¬
tected as a privileged communication, had there
not been evidence of malice, the employe reflected
upon can collect damages from him if the state¬
ments turn out to be untrue, and if malice can
be shown to have been present.
Of course the $150 “lost” by this employe will
never be recovered. To the employer it is indeed
lost, but it would not have been, I cannot refrain
from saying, had this collector been put under
bonds, as all employes handling money should be.
(C opyright, November, 1915, by Elton J. Buckley.)
Barker Lumber & Fuel Company’s Circular Concrete Coal Pocket.
Giving a Frank Opinion as to a Former Employe
No. 26 1
525
THE BLACK DIAMOND.
A Coal Company and Community Advertising.
This year the East State Street Business Men’s
Association of Rockford, III., decided to celebrate
the Christmas holidays and, incidentally, invite
the attention of the rest of Rockford and the
vicinity to the advantages of trading on East
State street. They went about it by decorating
all of the stores and windows on that thorough¬
fare. They called on the electric light company
and with its help the street became flooded with
light from numerous new arc lamps.
When the matter of advertising this part of
Rockford was first broached, E. H. Keeler of the
Rockford Lumber & Fuel Company ran plump
into a problem. Running into a problem is noth¬
ing new to Keeler — but this time the particular
problem caught him at a new angle. He had a
window right on East State street, a landmark
in one of the most prominent localities of Rock¬
ford. It would never do to have that big window
dark and all the rest of the windows on the street
ablaze with light. The problem then was : What
could a coal man put in such a window and at the
same time make it interesting enough to make the
display a business producer?
Now Keeler’s business is not window dressing;
rather it is being the dynamo for a big coal com¬
pany. It is his part to keep affairs moving. This
thing of being a dynamo has its disadvantages,
but also it carries compensations. It causes one
to meet people who know how to do things and
Philadelphia, December 22. — (Special Corres¬
pondence). — Not in years has railway traffic been
twisted into the snarl that at present exists on the
eastern seaboard. There are coal cars scattered
from Dan to Beersheba trying to make headway
into points of destination or unloading points.
Railway men in droves are workin.g twenty-four
hours to the day doing their utmost to get the
lines clear. Embargoes here, there and every¬
where have been on for nearly a week and day¬
light is still to be seen.
Of course the heading off of coal en route by
reason of the embargoes which have gone into ef¬
fect have caused a flurry among the men that
had coal on the wheels moving to the eastern
points of trouble and to New England, but the
slackeniag of price is believed to be only tem¬
porary because were an entire clean up of the rail¬
way yards at seaboard a possibility there is
enough merchandise to hurry east that would
again clog things badly.
The condition of affairs was not entirely un¬
foreseen. Railway men gave warning as far back
as September that there was such an immense
amount of freight that was on its way or could
be expected for trans-shipment abroad that a tie-
up was the expected outcome. Bottoms for all
sorts of carriage of ocean going freight have been
scarce but there was little thought given to the
actual conditions which would follow when the
full weight of demand for space was made.
The result has been that when the cars came
while Keeler was figuring on the problem he
remembered about George A. T. Long, the foun¬
dry expert of the Solvay Coke people.
Long is not a window dresser either, but he
could make a fine living at it. He has a record of
many fine displays to his credit. Keeler knew
Long and knew about his window dressing abili¬
ties. The two came in consultation and with
Long’s help the problem was solved.
How well he succeeded is attested by the ac¬
companying reproduction.
The window is about twelve feet long, eight
feet high, and six feet deep. In the background
was draped some white cotton cloth and against
this was erected a miniature club-house, a replica
of the new home of the Rockford Motor Club,
which will be erected next summer. The model
is about six feet long and is built exactly to the
scale of the architect’s plans. Inside are placed
carpets, miniature chairs, tables and everything
is arranged as nearly a duplicate of the real thing
as possible. The house is brilliantly lighted with
electric lights. The material used for the walls
is wire netting, into the meshes of which are
placed pieces of Solvay coke. The roof is of or¬
dinary roofing material. Just in front of the lit¬
tle club-house are placed some palms to give the
idea of trees.
The foreground is composed of different sizes
of Solvay coke and the edges of the display are
decorated with Christmas greens.
rolling into the various points of reloading that
each week added to the toll of traffic stagnation
until the huge total of 7000 cars in the South Am¬
boy yards of the Pennsylvania, and nearly 5500
cars in the Port Reading yards were blocked last
Thursday when the order came to permit no fur¬
ther shipments to the first named port.
Interlaced with cars containing all sorts of
goods from perishables to heavy goods for foreign
export were hundreds of cars of coal that could
not be moved out of the jam. Various coal firms
who make a business of transferring coal from
the South Amboy piers, say that they have bot¬
toms ready and waiting to move coal from that
point but they cannot reach their shipments.
When this article was written the embargoes
placed were as follows ; Pennsylvania, South Am¬
boy, tight. New York District, for necessary pur¬
poses only (locomotive fuel). New Haven points
via Jersey City — all shipments. Lehigh and Hud¬
son and connections — all shipments.
Philadelphia and Reading R. R. Port Readin.g,
bituminous coal. New Haven, via Jersey City —
all shipments. Lehigh and Hudson and connec¬
tions — all shipments. Lehigh and New England
and connections — all shipments.
In addition to this there is a Lehigh Valley em¬
bargo at Phillipsburg, N. J., against all hard coal
except that moving in Central Railway of New
Jersey cars and those which are billed to charit¬
able and public institutions.
The tie-up means a most serious situation for
New England and for the first time in years the
part that coal carryin.g boats delivering coal to
New England points have actually proved the big
part which they play in the trade.
War time prices for cargoes have taken away
many of the boats that plied between Hampton
Roads and tbe New England ports. The modern
collier played a big part in driving the coal hooker
and barge out of the business. Today barges be¬
tween the ports bring the highest charter rate
that has ever been known. Freights have been
made at prohibitive figures but even the high prices
that have been offered has not brought enough
bottoms into service to supply the wants of the
coal users there.
At Hampton Roads there are strings of cars
waiting for bottom to carry the coal away. That
in itself has been the cause of the coal stringency
that has to be faced there.
Three weeks a.go when the first acute signs of
a coal famine in New England made its appear¬
ance the buyers from that part of the country
jumped into the Pennsylvania market and in the
Clearfield and other sections where free coal could
be had that would take a direct connection along
the Hudson river, advances in prices were quickly
noted. With this coal on the wheels and bound
for points from Poughkeepsie on down, the free
door began to close. Connections through Bing¬
hamton and Mechanicsville to the Boston and
Maine were flooded to capacity and now have
been cut off. The connection to the Boston and
Albany lines through Rotterdam Junction clogged
and with the diversion of traffic which has been
occasioned by tbe embargoes about New York it
is only a question of time until this will have
reached its capacity.
So far as the New Haven connection are con¬
cerned they are as tight as though there was not
a wheel moving. Coal moving in box cars were
able to get throu.gh for awhile but this has been
practically put an end to, and all traffic must
await the untangling of the snarl before any more
can move through that artery.
Two ports of outlet through which some coal
can pass is the piers at St. George and Port
Reading. There is also at New York the piers
at Elizabethport and at Communipaw but these
are only small affairs and were traffic thrown there
in any .great quantity these would be jammed in
short order.
With the Pennsylvania shippers the open ports
that now remain are Port Richmond and Green¬
wich piers in this city. Richmond has been
handling its full amount of freight, and while it
could stand a considerable consignment of coal
cars it would not be any great time before it also
would clog.
Pennsylvania charters have been granted the
following new coal companies: Van Ormer Coal
& Coke Company. Capital stock, $5,000. Treas¬
urer, Frank H. Clemson, Stormstown, Pa. In¬
corporators : Thomas F. Barrett, Altoona, Pa. :
h'redrick G. Clemson, Junita, Pa. The Paint Coal
Company. Capital stock, $5,000. Treasurer:
John Schwabenbauer, Snydersburg, Pa. Incor¬
porators: E. J. Carroll, Snydersburg, Pa.; S. A.
Sacherl. Arthurs, Pa. ; Barbara Saltsman, Oil
City, Pa. Conestoga Coal Company. Capital
stock, $5,000. Treasurer: H. B. Hartswick,
Clearfield, Pa. Incorporators : L. C. Norris, G.
W. Ralston, Clearfield, Pa. Watkins Coal Min¬
ing Company. Capital stock. $10,000. Treasurer,
J. C. Thornton, Brooklyn, N. Y. Incorporators,
C. Law Watkins, Rye, N. Y. ; William J. Schafer,
Marlton, N. J. ; Edwin S. Lawrence, Ardmore,
Pa.
At the Cincinnati Coal Exchange election,
a few days ago, C. A. Tribbey, R. P. Gillham,
James A. Reilly and E. L. Sternberger, were
elected to fill vacancies on the board of di¬
rectors of the e.xchange, this being the annual
election. Mr. Sternberger is elected for one
year to fill the vacancy caused by the death of
Captain Charles J. Menges. The newly elected
members of the board and the "holdovers”
have been called to meet to reorganize and
elect president, secretary, treasurer and other
officers of the exchange. The new executive
officers will take their seats at the annual din¬
ner of the exchange, usually given shortly after
New Year’s day.
Now that the more seasonable weather has set
in the New England railroads are experiencing
their annual petty coal thefts. Through the
activities of Railroad Officer h'rank J. Coughlin,
the Boston & Maine road recently rounded up
four Polish women who are charged with the
larceny of a considerable amount of coal.
Why Cars in the East Are Scarce.
526
THE BLACK DIAMOND
[December 25
THE LOADED PURCHASE
A Chemical Combination ^ ~
In Fiction
Were I a writing man instead of sales man¬
ager of the Sovereign Coal Company, it is likely
I should be able to so disguise my identity that
you would feel a piquant pride in your cleverness
finding me out. But, I am not a writing man
and will, therefore, stick to plain facts.
Unfortunately also — or fortunately, if you
prefer — my ignorance of the writing craft’^ tech¬
nique leaves me without the means of revealing
to you, in an interesting fashion, the fact my of¬
fice is in the Girard building, Philadelphia.
One thing else: Our company is a jobbing-
concern. It neither owns, nor operates mines.
I set this statement down flat, and without shad¬
ing, leave it bald as a beardless scald-head. Here,
likewise, must I have it foreknown that we buy
the output of the Blackbelt Mine, down in the
Fairmont field. We resell this coal, ten per cent
of the selling price to us, the balance back to the
Blackbelt Company. May this last fact fasten
itself in your mind. Now I open the action. T
will not attempt to write the story ; I .shall merely
tell it.
You may not recall the long, hot spell of Sep¬
tember, but I have reason to remember it vividly.
On the very worst day of it I sat in my office with
all the doors wide open endeavoring to get every
breath of air that moved. The office boy was on
his vacation, the bookkeeper had gone to the
bank, and I was alone waiting for my stenogra¬
pher to return from lunch.
Things were rotten. No new business was in
sight and the weather was killing off what little
we already had booked. I was under the im¬
pression we had made $1914 in August, but in
analyzing the month’s balance sheet I found the
bookkeeper had made a mistake and had added
the “Year of Our Lord” into our profits.
Just as I made this pleasant little discovery, a
cat-whiskered gink in a plug hat and pegged
trousers came snooping up to the door with a
note book in his hand.
Ah, a book agent ! I reached for a paper
weight, thinking not to let drive until he came
within good range. But he didn’t come in. He
stood consulting his note book and rubbering at
the sign on the glass panel of the hall door. Like
a storm I saw his face cloud up. He began to
cuss or cry, I couldn’t tell which. But a second
look and a closer scrutiny proclaimed him no
book agent, so I got up and sauntered out into
the front office.
“Can I do anything for you?” I asked.
“Eh, bien ! Un autre! C’est a rire!” he snarled,
looking as if he were going to bite. I stood my
.ground. Slowly his face changed. He took off
his hat and bowed deferentially.
“Pardon, Monsieur,” he said, breaking into a
smile, “but it is my great trouble that everyone
would do something for me, but, Mon Dieu, what
they do for me is incredible ! They send me
here; direct me there and always it is wrong.
Will Monsieur be so kind as to say, is this not
the Girard building?”
“It is,” said 1.
“Then should not the offices of the Majestic
I'liel Company he found in this building?”
“'Phey should,” I answered, “but they can’t.”
“I do not understand. Monsieur.”
“Come in where it’s cooler.”
r scented business. He accepted my invitation.
After seating him and passing him a cigar I ex¬
plained there was a Girard building in Philadel¬
phia and also a Stephen Girard building. He
saw then he had mistaken the Girard building
for the Stephen Girard building, and had con¬
fused our company, the Sovereign, with our
rival, the Majestic Fuel Company. It required a
little time for him to unravel the tangle. While
he was puzzling it out, I was wondering how I
*This story has been refused by five well known
magazines. It was written by Arnold Gerstell on
a bet. Its publication here is the penalty he pays
for bad guessing. In a good natured wrangle
zvith one of The Black Diamond’s representatives,
Mr. Gerstell maintained there was an open field
for fiction in the coal business and to prove his
contention he undertook to "put a coal yarn over”
on one of five leading fiction publications, failing
which The Black Diamond was to have the privi¬
lege of "running” his story. He failed. He of¬
fers no alibi. — Editor.
% O q J
coiild hold on to him. Happily, at the moment,
my stenographer came in.
That- girl of mine is no faded wall flower. The
instant she put her foot in the door the French¬
man sat up and took notice. For his benefit, I
called her to my desk and gave her some fake in¬
structions regarding several imaginary orders.
Then I said : “Miss Beard, I am going to show
this gentleman down to the Stephen Girard
building.” •
She turned and looked him over. Out of his
•chair he went as if he had been stuck with a pin.
He clicked his heels together and again bowed
like a dancing master. I slipped the girl the
wink and got up to leave. Reluctantly the
Frenchman followed, and I saw his glances trail¬
ing wistfully back toward the girl as we went
out the door.
As soon as we were out of the building I
headed him for the club in place of the Stephen
Girard building. Once or twice I thought he was
going to balk and get away, but finally I landed
him in good order.
We exchanged cards on the first drink. My
expectations were confirmed. Truly I had a live
one. The card he handed me was of thin, flexible
velumcd paper. Upon it was engraved, “M. 1. J.
Unanidref, Engineer in Charge, Copenhagen Gas
Company, Copenhagen, Sweden.”
Queer name for a Frenchman, think you, but
it is not odd when you know the facts in his case.
It took a quart of wine and seven dollars’ worth
of food to get his history, but, to me, it seemed
well worth the money.
He wasn’t exactly French. He was born in
Switzerland. His father was a Russian but his
mother was full French. His father died and left
him a half orphan at twelve. His mother took
him back to her people in France. Through some
social influence she got the boy into the govern¬
ment academy at Saint Cyr. Fie graduated there
as a military engineer in 1885. In a competitive
examination he won an appointment as an assist¬
ant engineer to Bunau-Varrilla, who was then
chief engineer of the Panama Canal.
Dnanidref was on the Isthmus through the
yellow fever scourge. He was left there with¬
out a sou when the French enterprise collapsed.
While he was waiting at Colon for the arrival of
a French steamer, which had been promised, but
which it seemed, never came, an English tramp
anchored outside the breakwater. Her captain
was afraid to come in and discharge on account
of the fever.
Dnanidref was desperate. At high tide that
night he threw an empty beer keg off the dock
and took a chance. He hung on for two hours,
and finally brought up against the steamer. With
what strength he had left he managed to climb
the anchor chain and slip under cover. In the
fierce heat of the under-deck he lay fighting thirst
for two days before he emerged, and for eleven
months thereafter he remained on the ship work¬
ing as a common seaman.
The only thing he got for his labor was his
food, a bunch of experience and a fair working
command of English. At last, however, the ves¬
sel fetched up in Copenhagen with a cargo of gas
coal. Dnaniderf slipped off the boat by stealth.
After she had discharged and cleared he got a
job shoveling coal for the gas company. From
this beginning he advanced until he became the
company’s engineer in charge.
This experience, I imagine, he recounted when¬
ever opportunity presented an excuse and I sur¬
mise from the way he told it that it had lost
none of its savor through oft repetition. It was
a tale such as one would treasure for the inspira¬
tion of his children.
But what interested me was this : I learned
from his talk he had once used a coal in Panama
that had come from America, a very peculiar coal
possessing certain particular analytical properties
rarely found in a coal with physical characteris¬
tics such as to assure its being successfully con¬
verted into coke of a high porosity. And it came
out on top of this, that his purpose in visiting
the FJnited States was to find that particular kind
of coal.
It further developed that an extensive search
for the coal he desired had been fruitless. He
had scoured the Pocahontas field to find no coal
containing more than twenty per cent volatile
matter. With disgust he recited the many mis¬
directions he had received. He told me sadly
of the incorrect information forced upon him.
In the New River district the highest volatile
coal he found showed but twenty-six per cent.
Always the kind of coal he was looking for was
somewhere just beyond. He had spent two weeks
in central Pennsylvania and a coal thirty-three
per cent in volatile matter was the highest he en¬
countered. He had combed the Pittsburgh terri¬
tory, and had learned the limit of volatile
combustibles in the coal of that region was
thirty-six per cent. Along one of the tributaries
of the Kanawha river in West Virginia he had
come across a coal thirty-eight per cent in volatile
but it was of a slabby structure which would
prevent its coking properly. He had gone every¬
where except where he should have gone — to
Fairmont.
He required a coking coal forty per cent in
volatile and nothing less would answer. A
perilous trip across a mined sea and two months’
work and expense had gone for nothing.
Before leaving Copenhagen, oil for enriching*,
gas, made from low volatile coal, had become,
on account of the war, an impossible proposition.
He has assured his directors the coal his com¬
pany needed was produced only in America. He
had staked his reputation on his ability to find
that coal. He knew there must be such a coal,
but where? Where? Where?
His question repeated sent his voice trembling
up in a crescendo. Actually he shed tears. A
fit of exasperation seemed to carry him off his
feet. While he ranted I was thinking what price
I would ask him for Blackbelt. I knew I could
guarantee it to run forty per cent in volatile. I
knew, of course, it would coke.
“I ask you,” he sniveled, “is it not that such
a coal as I require exists in your country?”
“It does,” I said.
“Where? Where?” he pleaded, grasping me
by the lapel of my coat and sending his breath
into my face.
“In the Blackbelt Mine,” I replied. He hitched
his hold further up on my coat collar and stiff
armed, he pushed me back in my chair. An angry
look came into his eye, and I shot a hasty glance
at the water bottle just within reach.
“Do not. Monsieur, make sport of me,” he
warned. “I am not in the frame of mind to bear
trifling.”
“Neither am 1. Sit down,” I commanded, and
he obeyed gloweringly. Then I talked; and he
listened intently. As I went on speaking his
humor changed. His countenance lighted up.
Gradually an expression of hopeful anticipation
overcast it.
It took me some time to convince the poor nut
we had the very sort of coal he needed. I was
telling him about the mine when he cut in and
falteringly asked if this wonderful Blackbelt coal
could be put aboard a vessel at a cost not to ex¬
ceed $6.50 per ton. I nearly fainted ! That was
$3.85 per ton more than I expected to quote him.
Hastily tranquilizing my agitation, I feigned to
weigh the matter carefully and told him, after
some hesitation, we could arrange to let him have
a limited tonnage at that figure. Then I thought
to myself, “This wop is crazy.” I again looked
at his card. It reassured me. “How,” I ques¬
tioned, “am I to hold him ;” I was thinking it
over when he again forestepped me.
“Ah, Monsieur, I perceive you suffer with a
gentleman’s restraint in presenting your terms. I
appreciate the delicacy of the courtesy you pay
me, but, this, my dear sir, is a matter of business.
Will you not favor me by looking over my letters
of introduction and will you not be good enough
to make note of my banking company’s name and
address?”
Across the table he passed me a half dozen let¬
ters. It required but a cursory inspection to see
they were all right. His banking firm was a well
known New York house. As I ran over the cor¬
respondence he went on to say that this bank had
No. 26 J
THE BEACK DIAMOND
527
authority to pay cash against sight draft with
clearance certificate and bill of lading attached.
I handed back his letters and looked at my
watch. It was a quarter of three. I begged him.
to sit still while I telephoned to a gentleman with
whom I wished to postpone an appointment. Im¬
mediately he was on his feet. He wouldn’t hear
of it. Already he had imposed on me too far.
1 1 is apologies were profuse. He would not con¬
sider my allowing him to monopolize my very
valuable time. Quickly I ordered one of the
club’s justly famous brandy stingers. Under its^
seductive influence he subsided and I got to the
telephone.
W'hile the long distance operator was getting
his liank in New York, I got Miss Beard on the
wire. .She, really, is the only one I have in the
office who has sense enough to come in out of
the wet. She is all right. .She is a rattling good
stenographer, tf)o, but she is a hoiden and, while
she’s ordinarily very well behaved, it is always
ail effort for her to be ladylike. At heart .she is
a relative of Mrs. Botiphar.
So I jollied her about the “hit” she had made
with, the Frenchman and explained to her how it
would never do to let ea.sy money like this
I tnanidref go rolling around loose in a strange
town, without a chaperone. I made it plain to
lier that I had set the trap for a rabbit and caught
;i bear and that I was afraid he’d get away from
me. I would hold on as long as I could, but
would she help? She would. Just as we got it
framed up that 1 was to leave the office early
and give the Frenchman a chance to ask her to
dinner. New York came on the wire. Sure
enough everything was exactly as Dnanidref had
said it was and the cashier promised to confirm
our conversation by letter.
It must have been nearly five o’clock when we
got back to the office. In our sample cabinet we
liad a good sized chunk of Blackbelt coal. This
we sent out to a chemist and arranged to have a
rush analysis made of it. Dnanidref was in high
good humor, that is to .say, spirited or perhaps
spirituous. I introduced him formally to Miss
Beard, pleaded the postponed engagement, placed
the office at his disposal and left, carrying weight
for age myself.
The next morning 1 was in the office bright and
early — maybe not exactly “bright,” but certainly
early. The written confirmation from the New
York bank was in the mail ; also the report of the
chemist showing the sample of Blackbelt con¬
tained 40.27 per cent volatile matter. Everything
looked lovely. Then the lid flew off. Miss Beard
came in as sore as a crab and resigned right off
the bat. She had been disgraced ; she would
have me understand she was a lady; she was a
stenographer and did not draw' her twenty-five
Iier as a social entertainer. If I thought she was
•Mrs. Vernon t'astle, 1 had another guess com¬
ing. Her feet hurt her and she had a headache.
"Besides,” she snapped, “this Frenchy is a
crook. For your lictter information the Copen¬
hagen Cas Company is nothing but a fence for
the Cerman government. These Copenhagen
peo])le do not use any coal. They mike water
gas from coke.”
It was evident Miss Beard had failed to no¬
tice, the evening before, that the Frenchman was
well on his W’ay w'hen 1 introduced him to her.
But it seemed from what she said, two drinks
had made him sensational ; three had made him
ilrnnk, and on taking the fourth one, he harl
let the cat out of the bag.
"What the Copenliagcn (ias Company is doing,”
she flushed, “is landing high volatile coal on its
docks and reshipiiing it by rail to Germany. And
it is getting rich hecanse Germany has no high
volatile coal. Germany w'ants coking coal forty
per cent volatile because stich coal yields fifty
per cent more benzol than (ierman coal. Ger¬
many needs licnzol for motors, hut that’s not the
answer, either, hecanse benzol from high volatile
coal carries with it a very large percentage of
picric acid and tohml. Picric acid is the active
principal in fulminates and toluol in combination
with introgan makes the trinitrate of toluol which
is the high explosive used in the forty-two centi¬
metre guns.”
“h'or Heaven’s sake ! ’ I e.xclaimed, “Shut the
door.”
I realized then why this Frenchman was will¬
ing to pay such a price for coal. That, however,
didn’t bother me, I had the girl to handle and it
was up to me to finesse carefully. I managed to
do so expertly. About the time I got her all
smoothed out with a boost in salary, in came
Dnanidref with a bunch of flowers in his arm
as big as a wheat sheaf. He deposited them on
Miss Beard’s desk. Holding his shiny tile pressed
tightly to his heart, he bowed with a coxcomical
humility that was amusing. She thawed out in
spite of herself. Once more the sun was shining !
He came into my office and I handed him the
analysis on Blackbelt.
“Forty, twenty-seven,” I said. He gave the
report one look and wilted.
“Oh, Monsieur ! Monsieur !” he wailed.
“What’s the matter?”
“Oh, Monsieur! Monsieur! It is awful! It is
impossible! It is hopeless!”
“What’s awful?”
“The sulphur. Monsieur. See ! It is more than
three per cent. Surely there must be a mistake.
No coal could carry so much sulphur.”
The blamed fool hadn’t said a word about sul¬
phur before. I knew there was no mistake and
f saw the fat was in the fire. I felt like throwing
the idiot out, but the poor fellow looked so
motirnful I hadn’t the heart to do it. He limped
over, steadying himself with a hand against the
wall, and stretched himself out on the cotich.
With his arm covering his eyes, he lay there mut¬
tering. Miss Beard appeared in the doorway.
“Good night,” she murmured. She tossed him a
kiss from her finger tips. Then she turned up
her nose at me. I sat there all beaten down to a
whisper looking at him.
Suddenly he jumped up with a squall like a
wild cat and ran over and kissed me on both
cheeks.
“I have it. Monsieur! I have it!” he shouted.
He sung a little tune and did a jig step arotind
mv desk. Abruptly as he began he stopped.
"No! No!” he moaned, “I have it not! I am
a fool.”
“Say,” I blurted out, “What’s eating you, any¬
how ?”
“No, Monsieur, it does not eat. It is non-cor¬
rosive. It is harmless, but, alas it is contraband.”
“What’s contraband ?”
“The chemical. Monsieur, the chemical !”
“What chemical?”
“Oh, pardon! I will explain. You see it is
very simple. With a cheap, common chemical I
could neutralize the sulphur in your coal, suffi¬
ciently for our purpose, but it is impossible since
the war to get such a chemical in Denmark. The
Germans use it all. Neither can it be shipped
from America for chemicals, unlike coal, are con¬
traband and England will not let them pass.”
I thought I caught a glimpse of light.
“You say you can get this chemical in
.\merica?”
“Oh, easily! But it cannot be gotten into Den¬
mark. There lies the difficulty.”
"Never mind,” I said. “You say this stuff is
harmless?”
“Oh, quite harmless. Most innocent!”
“What’s it like?”
“It is merely a crystalline salt precipitate re¬
sembling, I should say, coarsely ground coffee.”
“Black is it?”
“Quite black. Monsieur.”
“Well, you sit down there and listen to me a
minute.”
“As Monsieur pleases.”
“Now, suppose you should ship this stuff to our
mine and suppose we could arrange to mix it in
with the coal. How would that do?”
His eyes widened. In another instant he was
over my desk tickling my ears again with his
whiskers. Monsieur had the wisdom of Solomon.
Monsieur was the very quintessence of clever¬
ness ! Monsieur’s genius was to be compared
only with that of the great Napoleon! With
difficulty I managed to turn off his flood of com-
|)liments. Shortlv he got busy to a purpose. So
.lid I.
While he was out hunting up his chemical I
burnt up a fifty dollar bill on the long distance
after an American bottom. Billy Donaldson on
.Marine Exchange gave me a tip and I landed on
the old steamer, Gomet, discharging ties down
at Portsmouth. She was under charter to make
a trip with coal from the Roads to Boston, but
would be ready to load again in two weeks’ time.
I got an option on her from Baltimore to Copen¬
hagen at eight dollars per ton.
When Dnanidref came back he accepted the
charter, and I closed my option by wire. Then I
wrote up a formal contract covering our under¬
standing in full. I handed it to him to sign. He
went over it, dipped his pen in the ink and hesi¬
tated.
“Oh, Monsieur,” he broke out, “one detail we
have forgotten.”
There was $20,000 profit hanging on his pen
point. I almost stopped breathing.
“Yes,” he repeated, “a mere detail. What does
the Comet carry?”
“Fifty-two hundred tons,” I answered, fully
expecting something to snap.
“Ah, it is quite well,” he mused, signing the
agreement contract. “Then we shall need another
hundred tons of chemical.”
“A hundred tons !” I echoed.
“Yes, I have only ordered two hundred. With
fifty-two hundred tons of coal we shall require
another hundred tons of chemical.”
Holy Mackerel ! I was about to put up a kick
when I took a tumble to myself. As the con¬
tract he had just signed called for settlement on
vessel bill of lading weight, he was bound to pay
us $6.50 a ton- for his own chemical, less, of
course, the rail freight wc had to pay from the
mine to tidewater.
Naturally, I shut up tighter than a clam, see¬
ing an additional $1,500 clear velvet for us. Ab¬
surd as it seems he overlooked the bet plumb
clean. Miss Beard breezed in with a telegram
and at once he was up with a lot of fluffy gush to
her. Inside of five minutes he had forgotten
business and was out buying chocolates and more
flowers for the girl.
After I had recovered my composure, I got the
Blackbelt on the telephone. Instead of sending
the chemical direct to Blackbelt, we decided to
ship it over on the other side of the mountain to
Peeltree and to store it in the old pumping sta¬
tion at the mouth of the drainage tunnel. The
rest was easy. We loaded the stuff in mine cars
at the pumping station, hauled it through the
waterway under the hill, and dumped it into the
railroad cars along with the coal we loaded for
tb.e Comet. Everything worked like a charm,
and when she loaded, I cleared her and cashed
my draft.
Now, that is exactly what happened. It did
not occur to me to question the transaction nor
to consider why it happened. To my mind the
satisfaction of successful accomplishment proved
entirely sufficient until, two weeks later, I fell
into an argument with that blackavised scoundrel,
Jim Ferdinand.
I allude to him facetiously, of course, for I
account him one of my best friends, although
an interrogation frequently enters my mind as
to whether, in his queer composition, such a thing
as friendship really exists. Nevertheless, I like
him — like him probably because I feel he is fond
of me. At any rate, it was his influence, backed
by his forty per cent ownership in the Blackbelt
mine, that landed me in my present job.
At sight one would take him for anything other
than he is — sales manager for the big mining
combination of the Somerset field, his interest
in Blackbelt being but a side venture. About him
there are no earmarks of the drummer. He
never seems to work. Certainly he seldom
speaks of it.
Reading is his recreation. Never is he without
a book, or more correctly, part of a book. Every
volume he takes up he first splits in two, the
better to fit half of it in his coat pocket. As he
reads, he tears off leaf after leaf and throws
them away. He sat alone reading at a “ring¬
side” table on the Ritz Roof that evening I ran
across him after my cleanup on the Comet.
“Astronomy or Egyptology, Jim?” I asked,
slipping into the chair opposite him.
He did not answer. He took a sip of claret-
reddened ice water and tossed his despoiled book
toward me. It was a well known treatise on in¬
sanity. The title adequately informed me I had
found him in true form. So, after a glance at it,
1 transferred my interest from the book to the
menu and I ordered a seasonable dinner with
more care than economy.
“Put it on Mr. Ferdinand’s check,” I instructed,
expecting my effrontery to draw some sarcastic
''hot in return. But my impudence was ignored.
-Mjstractedly my vis-a-vis resumed his reading,
r^eisurely, but lonesomcly, I dined. He read on.
I ordered coffee. Still he read. I ordered a cigar,
ft was a long chapter. Last, I ordered a cordial
and was cudgelling my brain for a pretext to
interest him when .Simpson of the United Com-
Iiany happened by. He stopped to throw' us a
w'ord of banter. Jim’s only acknowledgement of
the greeting was a cold nod.
“That fellow gives me a pain,” I growled, as
.Simpson moved on to another table. “He has a
pianola coal to sell and fondly imagines he is a
real salesman.”
Not a w'ord from Jim.
“If ever a fellow was shot in the back with a
load of luck,” I ventured, “that man is Simpson.”
Aspersive comment was no temptation.
“I am thoroughly convinced,” I went on, “that
brains are absolutely unnecessary in the coal
business. A fool has just as much chance to
make money in our business as the wisest man
in it. It’s all a case of luck!”
Jim looked up and eyed me inquiringly.
“You want to cut out intoxicants,” he observed,
(Concluded on page 5.32.)
[December 25
THE BLA( K DIAMOND.
528
Hocking Valley Coal Rate Hearing.
Coi.UMiiUS, Ohio, December :2:i. — ( .S/’Ccai/ C <h'-
rcspondeucc.) — The Hocking \ alley railway
coal rate hearing came to an end on the 21st,
at least so far as the offering of testimony is
concerned. January 20 is the date fixed hy
the State Utilities Commission for the Sunday
Creek Company, complainants, to file their
brief. The railways are allowed ten days
after this document is in to make reply to it,
and the complainants, if so desired, niay take
an additional five days to e.xamine this reply.
Following this both sides are required to pre¬
sent their arguments to the commission orally.
riiis practically marks the close of the long¬
est coal rate case in the history of Ohio, and
one involving the largest interests. The hear¬
ing began on the 5th of August last, but has
been subject to several continuances of con¬
siderable duration. The record of testimony
consists of about 2,1)00 pages, exclusive of nu¬
merous exhibits. In the action before the com¬
mission of the New \ork Coal Company'
against the Hocking Valley Railway Com¬
pany, in 1911, which resulted in reducing the
rate from Nelsonville to Toledo over that road
from $1 to eighty-five cents per ton, with pro¬
portional decreases north of and including Co¬
lumbus, had a record of some 1,500 pages.
As the present case is regarded as a test
of Ohio coal operators to secure, through
reduction of Ohio rates, an increase of dif¬
ferential for Ohio coal as opposed to that of
West \'irginia and Kentucky, of fifty cents
per ton, an advantage which Ohio operators
claim would give them a fighting chance in
the steam markets of their home state, the
proceedings have been watched with great in¬
terest by coal and railroad men generally.
During the hearing a number of railroad at¬
torneys and officials from outside the state
have been in attendance from time to time.
Nothing that might be considered unusual
has developed. Each side has supported its
contention with great thoroughness. From
present viewpoint the strongest basis of the
defendant would seem to be the simple fact
that the Hocking valley is receiving West
Virginia coal at Armitage, Ohio, the K. «& M.
junction point, which it hauls through Nel¬
sonville to Toledo at about thirty-nine cents
per ton, whereas it charges eighty-five cents
from Nelsonville, which is the assembling
point for Hocking coal, to Toledo. The rail¬
road, on its part, admits this, but claims that
the bulk of operating expense accrues to Ohio
coal, largely by reason of assembling cost.
It states further that but for the fact of its
Ohio coal earnings, at present rates, it could
not exist, and that the small profit which it
realizes from West Virginia tonnage is fixed
by competition. The complainants have
sought to show the community of interests be¬
tween the Chesapeake and Ohio — the line on
which the foreign coal originates — and the
Hocking Valley, as being under the same own¬
ership. They also point to the alleged growing
proportion of West \'irginia coal over Ohio
coal in the total tonnage of the Hocking Val¬
ley, claiming the present status to be nearly
one-half.
While not prepared in the form of testi¬
mony, the complaints expect that the commis¬
sion’s common knowledge of the existing bad
state of the Ohio coal industry will have
weight with a body naturally having the
state’s welfare at heart. On the other hand
the defendants may benefit by the greater
caution which now seems to prevail through¬
out the country with respect to regulation that
reduces railroad revenue. Much is expected
to depend upon the skill and forcefulness with
which each side sums up, in its briefs and ar¬
guments, the great volume of evidence taken.
A phase of the hearing was the doubt at the
outset whether or not other coal companies
would become parties with the Sunday Creek
Company in prosecuting the railroads, all of
whicli, if doing business in Ohio, are de¬
fendants in the original petition filed by the
United Mine Workers. While the Sunday
Creek Company has had the moral, and it is
believed the financial, support of other oper¬
ators, these have withheld open jiarticipation.
Petition for rate reduction was filed against
the Pennsylvania, the Baltimore & Ohio and
other lines by the Eastern Ohio Operators’
Association several weeks ago, but this will
be considered as a separate case.
Leading coal men believe that should the
commission authorize a reduction on the Hock¬
ing X’alley Toledo rate, this would mean ac¬
tion of producers in all Ohio fields for rate
readjustment. But should the existing Hock¬
ing rate be upheld it is thought that other
hearings will go by default. The recent filing
of a tariff by the Hocking Valley restoring its
old .$1 rate from Nelsonville to Toledo, is not
taken seriously by the coal trade. Formal
protest has been offered by a leading Hock¬
ing valley coal company, but it is felt that
the commission in any event would not sus¬
tain the old rate. The railroad has set January
20 as the date for its going into effect.
The last two days of the hearing were
marked by the presence on the bench of a
new member of the commission, Louis M.
Day, a prominent attorney of Chillicothe, who
had been appointed to succeed Oliver M.
Hughes, resigned.
Incorporation papers were granted on De¬
cember 20, 1915, to the Rerwinsdale Coal Min-
“Storing the Black Diamonds,” is the title of
a four-page circular recently sent out by James
F'aucett, a retail coal dealer at Bath, N, Y.
The circular goes on to say: “You may not
know, sir, that Coal in itself is not especially
dusty, most of the dirt coming from pieces rub-
bin,g against each other when coal is handled
in the old way. If we shoveled the coal, you
you would not care to stay in the room very
long.
"Our way of filling the storage bins avoids
breaking the coal, and does away with a great
deal of the dirt. The bottom of the bin is about
twenty-five feet below the point where the coal
enters, and if we permitted the coal to drop it
would be broken, but we use a series of chutes
on a sli.ght incline, and the coal rolls from one
chute to the other until it reaches the bottom.
“Another point is that our coal is protected
both winter and summer from the weather. Coal
loses a certain percentage of its carbon or burn-
in.g quality, when exposed to the rain, sun and
winds, so that unless the coal is protected you
will require more than a ton of coal to do the
same work that a ton under the protection that
we give it will do.
"We call your attention to the manner in which
our coal is loaded into the wagon. The bottom
of the upper section of the chute is a heavy
wire screen. The driver lifts the gate in the bin
which permits the coal to come out, and not one
piece falls into the wagon without first rolling
over the screen. No matter if the driver is
in a hurry, he must wait until all of the coal
ing Company, I’hiladelphia, I’a., capital stock,
$101), 000. The incorporators are Louis C. Em¬
mons and James A. Emmons of Philadelphia
and W. 11. Reed of Dudley, Pa. This com¬
pany has been formed to take over the present
holdings of the Reed Colliery Company of
Rerwinsdale, Pa. At the present time, this
mine is producing approximately 400 tons per
day. The new owners will electrify this mine
throughout, have purchased two new electric
locomotives, two new mining machines and
made arrangements to rebuild the present tip¬
ple. When these improvements are completed,
this mine will have a capacity of 1,000 tons per
day. The company owns 400 acres of coal
land outright and have under lease 2,100 acres.
They own twenty-five miner’s houses and a
large store. The officers of the company will
be Louis C. Emmons, president; Jas. A. Em¬
mons, secretary and treasurer, and W. H.
Reed, vice-president and general manager. The
entire output of this mine will be handled by
the Emmons Coal Mining Company of Phil¬
adelphia, and the coal will be known as “Cul¬
pepper Smokeless.”
is screened, and not one piece can get into the
wagon that is not just as clean as coal can be
made. This method makes faster loading and
cleaner coal.
“To give our customers clean coal and the
most careful attention to every order given in
person or by telephone or mail, is our reason for
erecting our Coal Pocket. The investment is
large, but one that we are willing to make for the
sake of givin.g our customers efficient service.”
The circular ends with an appeal for a trial
order and an invitation to visit and inspect the
pocket.
A photograph of the pocket is shown herewith.
It has been covered with sheet iron since the
picture was taken.
Mr. Faucett handles wood, grain, mill feeds,
grass seeds and masons’ supplies in addition to
anthracite and bituminous coal.
He has designed and uses what seems to be
a very simple and convenient form of scale ticket
and billing system. This consists of four tickets,
4J4x9/^ inches, printed upon one page with a
duplicate sheet for carbon copy. Upon each of
these tickets is a line for the date, the customer’s
name and his address. A list of the different
products handled is made below, so that only the
amount bou.ght of each product and the charge
is all that need be filled in. These tickets are
perforated in such a manner that the original
copy can be torn out and used as a bill, the
carbon copy remaining as a record of each sale.
All coal is sold for cash with order or on de¬
livery.
The Pocket of James Faucett at Bath, New York.
Simple Explanation of the Storage of Coal.
No. 26J
THE BLACK DIAMOND
529
What Retail Associations are Doing.
Northwestern Traffic Bureau.
.^t the annual meeting of the Northwestern Re¬
tail Coal Dealers’ Association held in Minneapo¬
lis on July loth and Kith, 1915, the delegates in
attendance voted unanimously to reorganize the
association into a corporation, to be known as the
"Northwestern Traffic and Service Bureau, Incor¬
porated.” The action was taken after two days'
thorough discussion of the proposed plan which
had been under consideration by prominent mem¬
bers of the association for two years prior to the
annual meeting. The proposed bureau was in
line with the recommendations of our legal de¬
partment.
Two important reasons for this action, were:
first, the elimination of the individual responsibil¬
ity that has heretofore been attached to the mu¬
tual form of association work, and, second, the
association was up against it to get enough funds
to carrj' on the work efficiently in the future, and
prominent members who have taken an active in¬
terest in the association for years would not sub¬
scribe more money to the old association, but
gladly and willingly consented to pay $10.00 per
yard annually to a bureau where the service was
subscribed for and the individu.^l respon.sibility
ELIMINATED.
On November 15 we were ready to solicit our
first subscription, and to show you how the re¬
tail dealers feel about this, at the date of this
writing — after six weeks solicitation — $10,000.00
has been subscribed, almost as much money as we
formerly received under the old organization plan.
Under the new bureau, however, a minimum fund
of $25,000.00 per year will be provided to carry on
the work.
'fhe same finance committee that has looked
after the affairs of the association for the past
number of years will have change of the new bur¬
eau. This will insure to everyone the fact that
that the money received will be spent in the in¬
terests of the retail trade, and that the money col¬
lected by the bureau will not at any time be used
for any other purpose.
Under the new bureau the subscription will be
payable in advance, one-half each on January 5th
and July 5th, or can be paid at one time, if de¬
sired.
The Northwestern Traffic and Service Bureau,
Incorporated, will be the most efficient retail mer¬
chants’ organization in the country because of the
high grade business men back of it.
The Northwestern Traffic and Service Bureau,
Incorporated, proposes to sell service to its sub¬
scribers rather than act as the executive and in¬
formation department of an associate body of re¬
tail dealers. Any unincorporated organization is
in fact no more nor less than a large co-partner¬
ship with a personal liability possible to be en¬
forced against any of its members. The "Incor¬
porated Service Bureau's” subscription for service
overcomes the most serious objections to an as¬
sociation membership.
The service rendered to its subscribers by the
Northwestern Traffic and Service Bureau, Incor¬
porated, will be very similar to that rendered by
the commercial agencies, such as Bradstreet and
Dun, or by any other information bureau, but be¬
ing specifically aligned with the retail coal trade.
The fact that association work has actually gone
far beyond the plan for which it was originally
organized and could only take up in a limited way
some of the very important matters that can now
be more thoroughly covered by the Service Bur¬
eau, forced the conclusion with many of the lead¬
ing association members that as an association it
had reached its limits of usefulness.
The Service Bureau in its plan of selling service
is in line with modern methods of doing business.
The work will be less hampered by investigations
of governmental authorities. Any plan for carry¬
ing forward the work on behalf of the retailer
along the lines of an association body can be done
only through wisely directed effort. The North¬
western Retail Coal Dealers’ Association has a re¬
cord for efficiency. However, to the trade in .gen¬
eral, the association’s field of usefulness under the
new plan will be more efficient.
H. L. Laird, Secretary.
St. Louis Coal Clubs.
St. Louis, December 21!. — 1 take great pleasure
in telling you the conditions that prevailed in our
organization during the past year and prospects
for the coming year.
The object of our organization is to promote
good fellowship, to have educational and social
meetings, so as to enable all members to become
better acquainted.
Our meetings are held the second Monday
night in every month and are well attended by the
retail and wholesale coal men of St. Louis and
vicinity. .‘^t these meetings we have special top¬
ics for discussion, such as pertain to the coal busi¬
ness. The principal ones discussed recentl\’ were,
Credit, Competition, What is a reasonable margin
in price on bituminous coal in a retail yard? Why
are steam coal contracts handled at a margin of
profit so much less than domestic business? Traf¬
fic and coal deliveries in the down town district.
The isolated steam plant, its reliability of service
and its economy over the Central Station service,
and a great many others of similar nature.
The topics are suggested by members of the
Club, each topic is assigned to a committee to
prepare a paper on the topic assigned to them
for discussion. .\t all times the discussions have
been ver.\- interestin.g and educational, as points
are brought out that ordinarily no one would think
of.
While our organization is still in its infancy, it
is surprising the good work that is being done, all
members are very enthusiastic and the meetings
are always well attended.
The social part of our meetings consists of
speakers who lecture on various subjects not per¬
taining to the coal industry, the principal of
which were a lecture by Mr. J. W. Booth, adver¬
tising manager of the Alissouri Pacific railroad,
together with a trip to the California Exposition in
motion pictures. A tour of the Golden State, in¬
cluding a side trip to Colorado Springs, Cliff
Dwellers’ Ruin, and Yellowstone Park, showing
the Royal Gorge, Feather River Canyon and the
Panama Exposition.
Dr. Frederic Ha.gler, who has recently returned
from Serbia, delivered a very interesting lecture
with pictures entitled “Experiences in the Euro¬
pean War Zone.”
.Another successful feature of our entertain¬
ments was two boat excursions which were held
during June and August. The committee in
charge made special arrangements to insure a most
enjoyable time for all, and which proved very
successful.
These entertainments serve to make better ac¬
quaintances, and are educational as well as in¬
structive.
The principal and most important step the Club
has undertaken is to procure the passage of an
ordinance of the City of St. Louis, relating to
weights and measures, and abolishing what is
commonly known as the “City Ticket.”
The retail dealers enga.ged in business in the
City of St. Louis, during the past year have paid
to the city for these tickets approximately the
sum of $24,000.00. The expenditures above men¬
tioned, afforded no protection whatever, either to
the coal dealer or the public. The city ordinance
requiring dealers to purchase the tickets was ori¬
ginated about fifty-eight years ago. This state¬
ment alone is sufficient to raise the presumption
that the ordinances are wholly inadequate. An
entire new ordinance has been drafted conform¬
able to modern ideas on the subject of weights
and measures, and submitted to various city offi¬
cials who would be interested in securing the pas¬
sage of a proper ordinance. The ordinance as
revised in the city counselor’s office was then in¬
troduced to the Board of Aldermen, and on Fri¬
day, December 10, 1915, received its second read¬
ing. Thus far, no one has interposed any ob¬
jection to the ordinance and asserted that they
could discover no reason why it should not be
enacted into law.
The present officers of the Club are: A. 11. Bed-
del, President ; W. H. Riester, First Vice-Presi¬
dent; L. P. Coan, Second Vice-President; H. B.
Wessel, Secretary; 11. P. Bri.ggs, Treasurer.
Directors; J. J. Connell, F. L. Swanson, A, O.
Willig.
We have the following committees; Railroad,
J. J. O’Donnell, Chairman; Membership, E. G.
Ridgway, Chairman; Entertainment, J. A. Jeff¬
eries, Chairman ; Sick, Officers of the Club.
These committees are principally responsible for
the success of the Club during the past \ear.
due to the fact that the chairman of each com¬
mittee took deep interest in attaining the best re¬
sults possible. They are to be congratulated on
their jirogrcss.
II. B. \Vessei., Secretary, St. Louis Coal Club.
.Archibald S. Graham, age 08, owner of the
McKim-Cochran Coal Company, Madison,
Ind., died this week of heart trouble. He was
well known in southern Indiana.
Chicago Cost Accounting.
(Concluded from page 521.)
been, because we knew about what the situation
was. -Also, we knew that it had taken seven or
eight years of constant discussion to get anything
definite started in Chicago. Still we thought it
was worth while to pass on the Chicago plan to
the other retailers. This we did in the form of a
question.
The answers to that letter have been just what
might have been expected. One retailer, for ex¬
ample, says ;
“We have never tried anything of that kind in
our town because the retailers here are suspicious
of each other. If they should give in their figures
the statement would be falsified, because no one
would know for sure what mse the other fellow
would make of them.”
This was a familiar line of reasoning, because
precisely the same question had been put in Chi¬
cago. In answer the Chicago men said : “My
competitor may know my cost and hence arrive
at my minimum selling price. He may thus cut
down to my minimum, but unless he is a fool he
will not go below it. Thus we may get a bottom
figure.”
-Another retailer said :
“This subject has been much discussed by the
trade journals, but not at all by the retailers.
We can’t get the dealers in our town interested
in it.”
This was also a familiar circumstance because
the same thing had come up in Chicago. After
a while the Chicago dealers realized that the trade
papers were not discussing cost accounting for
their own benefit or amusement. Rather, they
were discussing it because they hoped to be of
some service to the retailers themselves. There¬
fore, trade paper discussion without any action
by the retailers is a waste of the time of the man
who wrote the articles and of the retailer who
reads them. It is a pure economic loss.
Another dealer says ;
“We have no information in our own office,
but if you get in touch with two or three other
fellows in town who are cranks on that subject
you may get something. Th^ reason we are not
interested in it is that we handle something be¬
sides coal and you can’t separate coal costs from
lumber, building material, etc.”
That was also a familiar circumstance in Chi¬
cago, because some retail yards handle ice, others
building material, and some do a teaming busi¬
ness. However, the Chicago retailers soon learned
that because they did two or three kinds of busi¬
ness under one roof they were not justified in re¬
fusing to learn the cost on any one of them.
The most common expression came from a
dealer who said :
“We have never tried anything of the kind
among the dealers of our city. Each one is work¬
ing out his own individual plan by himself.”
Chicago tried the individual method and after
nine years of fruitless discussion of the matter
had gotten nowhere. So Chicago abandoned it.
Anthracite Rates Postponed.
It is understood that the anthracite people are
expecting that the proposed anthracite rate reduc¬
tion, which had been e.xtended to January 1st,
are to be further extended month by month until
the close of the anthracite year on March lilst.
It is pointed out by those interested that an e.x-
tension to April 1st would he equitable to all con¬
cerned.
Previous extensions from October 1st to De¬
cember 1st, finally to January 1st, have been
granted not particularly from a desire to refrain
from injuring the railroads, but to prevent injury
to large independent coal producers.
The first order by the Commission was drastic,
and would have hurt the earnings of the big
anthracite companies considerably. -After re¬
peated conferences, modifications in the amount
of the reduction in rates were secured.
It was found that the increase in the steam
sizes would particularly interfere with yearly con¬
tracts, which expire .April 1st, for the sale of
steam sizes in the New York district. These con¬
tracts were fixed before the commission attempted
tto reduce anthracite rates. Hence the commis¬
sion. realizing that the anthracite rate changes
would interfere with such contracts, has granted
the recent extension and probably will grant
others until the close of the present anthracite
year.
The Fore River Ship Building Corporation has
recently secured a contract for two steamers for
Edgar I'. Luckenbach of New York and one for
the -Argentine government.
530
THE BLACK DIAMOND.
[December 25
PUBIiISHED EVEBT SATTTBDAY BT THE
BEACH DIAUOITD COMFAirr.
Subscription price, $3.00 per year, postage prepaid, to
any postoffice in the United _ States. Foreign subscrip¬
tion price, $5.00 per year. Single copies, 20 cents.
Entered at Chicago postoffice as second-class matter.
Address all communications to
THE BEACH DIAMOND COMPANY (INC)
Main office, Manhattan building, Chicago.
Branch Offices.
New York, 29 Broadway.
Philadelphia, 1400 Land Title building.
Pittsburgh, 1502 Oliver building.
Saturday, December 25, 1915.
INDEX.
Special Articles.
Page
I low Chicago Began to Study Cost Accounting . 52t
An Eastern Retail Cost Accounting System . 522
IClk Horn Coal . 522
Handling Anthracite Over Loading Docks . 523
November Antliracite Increase . 523
Barker Company’s Circular Concrete Coal Pocket. . . 521
Giving a Frank Opinion as to a Former Employe. . . . 521
A Coal Company and Community Advertising . 525
Why Cars in the East Are Scarce . 525
.\ Loaded Purchase — By Arnold Gerstell . 52(1
Hocking Valley. Coal Rate Hearing . 528
Simple Explanation of the Storage of Coal . 528
What Retail Associations Are Doing . 529
Anthracite Rates Postponed . 529
Editorial . 530
What the New York Association Has Done . 531
News Local to Chicago . 532
Facts Which Determine Our Export Prospects . 533
Market Reports.
General Review and Chicago . 534
Pittsburgh, Omaha and Detroit . 535
Cincinnati, Indianapolis and Twin Cities . 536
Cleveland, Birmingham and Denver . 537
New York . 538
Philadelphia . 539
Buffalo, New England and Baltimore . 540
Hocking Valley . 27
Sensible Advertising,
Advertising is a subject with which the
editor is not supposed to concern himself.
In the nice adjustment of things inside the
newspaper office, the advertising force is
supposed to go out into the byways and
hedges and bring in the money. This,
according to the fiction of the craft, is
turned over to the editor to spend. How
the money comes in is presumed to be none
of the editor’s business— so long as it comes
in.
However, in these inquiring days, the pro¬
fessional writer, sometimes, batters down
the door which was built to segregate him
from the real things of life and insists upon
a look at the wheels as they go around.
This occasional glimpse at real things, as
opposed to those of theory and idealism,
brings a practical suggestion as to adver¬
tising which seems to this particular the¬
orist to be worthy of consideration.
The first part of this practical suggestion
is : Professional advertising writers as a
class have reduced their craft to a science
in the treatment of everything except coal.
For example, certain “copy” men devote
themselves exclusively to public service
copy. Others devote themselves to mechan¬
ical or scientific copy. And so the big ques¬
tion of appealing intelligently to the public
is divided and subdivided about as the doc¬
tors have come to divide the human body
among the specialists. But in all of this
subdivision, no attention has been paid, so
far, to the advertising of our natural re¬
sources.
Rather than coal advertising being han¬
dled by experts, as in other lines, every
man who has had an odd lot of coal to
sell has tried to do his own advertising
writing. In a word, the retail dealer has
been a yard manager one minute and an
“advertising expert” the next. .Since yard
managing is his busines and absorbs his
attention, he has not made a renowned
success at advertising writing. The re¬
sult has been a wanton waste of adver¬
tising money. Pardon our candor, but
this is the truth.
To see whether advertising has been
done properly, suppose we start with an
illustration. Would Ileinz pickles have
been successfully advertised if the fac¬
tory had tried to make a campaign on
each of the fifty-seven varieties? Instead
of saying as they did, “Heinz Pickles, fifty-
seven varieties,” would results have been
possible if they had said: “Heinz Pickle
Company, producers, jobbers and retail¬
ers in pickles. We produce the following
well known brands,” following which they
would have named each one of the fifty-
seven varieties and printed a little essay,
in small type, under each of the different
names. Our impression is that under the
latter plan Heinz pickles would still be
virtually unknown.
In a word, the people got the Heinz
message because it was telegraphic and
told much in a sentence which is easy to
understand. It appealed to the imagina¬
tion of the buyers rather than to their
reason. It allowed them to imagine a
basic quality and to ascribe this to every¬
thing that Heinz touches. And this is
what the people have done.
The average coal retailer, instead of
sifting it all down to a single sentence,
which includes his fifty-seven varieties
of coal, wants to talk shop in public. He
imagines — without experience to support
his view — that the coal user knows as
much about coal as he does. Therefore
he thinks the householder is as interested
in details as he is. The retailer, on this
mistaken theory, wants to enumerate a
dozen brands of coal, under the wholly
misguided notion that the buyer knows
the difference between them and will want
to make a discriminating choice. On the
contrary, the buyer does not know the
difference even between hard and soft
coal. As between the different grades of
soft coal, he knows absolutely nothing
whatever and doesn’t want to know.
That raises the question : Is there any¬
place in which the advertising of coal
trade names should be done? Is there
any field for the exploitation of local
favorites on coal or of seam names? To
be sure there is. Our only point is that
that place is not to the public, which is
not interested in and cannot grasp infinite
details as to quality and preparation.
Rather the place for such thing is in the
advertisements addressed to the retailer
who shows a fondness for detail. That
is. Island Creek coal may be made by
proper exploitation to mean a vast deal
to the retailer as distinguishing the qual¬
ity and preparation of one West Virginia
product from the many which that state
affords. It is, therefore, perfectly proper
to advertise Island Creek coal to the re¬
tailer, and to do it as elaborately as -the
producers think they can afford. But to
talk such details of coal to the house¬
holder would mean nothing, because he
could not grasp them. Candidly, it would
cost too much money to have such details
come to mean something to the ultimate
consumer.
Therefore, our conclusion is that it is
right and proper to talk about local or
trade names when you are advertising-
inside the trade where such appeals are
appreciated. To try to carry that prac¬
tice into the advertising to the ultimate
consumer is only to bring confusion be¬
cause the public mind cannot grasp such
things.
Our suggestion to the trade is : Be spe¬
cific on internal advertising, but lump and
simplify your appeal to the public. Our
advice to the retailer is : Get your own
slogan for your own yard and let it stand
for everything going out of your yard,
from anthracite to peat.
The advertising- department invades the
sanctum at this point and suggests that
the columns shall be left open for testi¬
mony in rebuttal. That is hereby done.
In the language of the drunken mouse:
“Bring on your cats — all of them.”
The Austrian Note.
We have read the note which the Aus¬
trian minister wrote to the secretary of
state of the United States. It was in
reply to another sent by Mr. Lansing to
Austria regarding the sinking of a ship
which carried, among others, some Amer¬
ican passengers.
After reading it, we are led to inquire :
“What would be the situation if one man
in private life wrote that sort of note to
another man ?” Looking at the document
in that light, a few things suggest them¬
selves :
First, the Austrian note is sarcastic.
Our observation has been that when a
man uses sarcasm he is out of patience
with the fellow addressed and takes a
polite, or at l^east an accepted, way of tell¬
ing him that he is a fool without using
the word. By the abundant use of sar¬
casm, then, the Austrian government told
the American government that it was a
fool without, however, saying as much
except in spirit. Our opinion is that if
one man in private life said that to another,
there would be a fight.
Second, the Austrian government told
the American government that it was a
liar. It didn’t say so exactly, and in so
many words, but it did put that same idea
into diplomatic language, namely, that the
American government made a statement
to the Austrian government which it was
not particular to substantiate by facts
and which, indeed, could not be so sub¬
stantiated.
If one man in private life said that to
another man, there would be a fight at
the end of the correspondence.
We are not, here, discussing the merits
of the controversy and shall not. We
are interested in this lively exchange only
on the human basis. We are interested
to know what would be the result if two
red-blooded men reached a point where
one called another an inhuman brute and
where the other replied by saying that
the first writer was a fool and a liar.
Isn’t it going to require a good deal of
self-restraint hereafter to keep these two
gentlemen out of each other’s whiskers?
No. 26J
531
THE BLACK DIAMOND.
What the New York Association Has Done.
At a recent nieetir.g ul the New York Coal
Merchants Association, Arthur I*'. Kice, the com¬
missioner, made his annual report in which he
said, in part ;
“As we review the results of the
season’s work, from April first to date, we find
that at least one-fourth of the tonnage has been
placed at figures that show either a loss or a ridi¬
culously inadequate profit, and distrust has taken
the place of confidence throughout the trade. On
two or three occasions the market has been on the
verge of going to pieces altogether and only es¬
caped disaster by a narrow margin.
“The first and most serious disturbing element
was the condition of the wholesale market. The
trouble be.gan with an influx of coal at tidewater,
and as early as February sales were made at
April prices. The larger companies did not be¬
gin soon enough to restrict mining, and a lot of
individual operators, whose coal had heretofore
been handled by the big wholesalers, started in to
merchandise their own product, evidently looking
upon the tidewater market as their harvesting
place. The result was that a big surplus of coal
piled up here that the market could not digest and
that had to be moved somehow. All sorts of
prices were made to accomplish this, and, as the
dealers could not absorb it all, the residue fell into
the hands of jobbers and scalpers, who hawked it
about everywhere, among the manufacturies, the
hotels and even the apartment houses. Men whose
names were unfamiliar to the trade suddenly
blossomed out as “wholesale dealers” ; and for
each car.go of coal on demurrage in this harbor
there were a dozen concerns out trying to sell it.
“As a natural result, much long-established re¬
tail business was taken by the jobbers and middle¬
men, and on a still larger proportion of it the
dealers were compelled to make ruinous prices or
lose their customers. Tn the conviction that the
continuance or repetition next season of this state
of affairs would spell calamity for the retail deal¬
ers in this city, I addressed a letter, under date of
June 1st, to all the principal wholesale houses.
“Within a month after this letter was written,
the first decision under the Clayton Law was ren¬
dered by Judge Hough in the United States Dis¬
trict Court and, as the Times stated in an editorial
comment on this decision, “The gist of it is, the
right to hx prices, choose customers and abstain
from business at will.” The old bugaboo that a
man may not refuse to sell his goods to anyone
who tenders the money in payment therefor, no
matter how much damage the transaction may in¬
flict upon the business of the seller, is so thor¬
oughly exploded that it can no longer be used as
an argument or an excuse for selling coal, or any¬
thing else, to those who are disturbing the trade
in such commodity,
“But, we need not rest on this decision alone.
On the 12th of November, 1915, the United States
Court of Appeals handed down a decision, in
what is known as the “Cream of Wheat Case,”
concerning which the JVall Street Jourml made
this comment :
“ ‘Refusing to sell to one whose conduct is such
as to injure the business of the seller, or others
with whom he competes, certaiidy cannot be con¬
strued as unfair competition, nor can it be called
a restraint of trade. The gist of the decision is,
that neither the Sherman nor the Clayton law
takes from the dealer the right to select his own
customers, but leaves him free to deal with whom
he pleases.'
“These important decisions, the first to be ren¬
dered under the recently enacted Clayton Law, put
the matter squarely up to the wholesalers and it
remains to be seen whether they will adopt the
policy therein outlined and whether they will se¬
lect as their customers the people who are under¬
mining and destroying the trade, or whether they
will refuse to do so and confine their business to
the le.gitimate and permanent dealers who trade
with them twelve months in the year and who are
entitled, by every law of good business and com¬
mercial fairness, to wholesale cooperation and sup-
port.
“Next to this wholesale competition — if T may
use that term — the most disturbing feature of the
business has been the ruinous competition that has
been introduced into it by certain people whose
regular line of trade is the ice business. This
began last year. If people really want to go into
the coal business permanently, establishing ade¬
quate plants and hazarding their capital as the
regular dealers arc obliged to do, there would be
nothing to say a,gainst it. The city would be jus-
lificd in renting its property to them for such pur¬
poses. Blit, it does not seem fair or consistent
with public interest for the city to grant dock per¬
mits to people who do not assume, or pretend to
assume, the responsibilities of taking care of their
trade throughout the year ; who rent docks by the
month instead of on long-term leases, as the coal
men are compelled to do, and who, without heavy
overhead expenses, proper delivery facilities or the
upkeep of costly plants, are thus enabled for a
brief period to snatch a certain class of business
away from the legitimate dealers.
“In spite of protest, more permits have been,
and are still being, granted to the ice men to
transact a coal business at various points. In
order to protect their trade which, if we are cor¬
rectly informed, was being taken from them by
methods which mi.ght well engage the scrutiny of
the courts, one or two of the largest dealers en¬
gaged in the ice business themselves. It was the
last thing they wished to do and S7mething which
they would probably retire from promptly if the
cause were removed ; but I venture to predict that
they will not withdraw from it so long as this
form of competition remains.
“I have long maintained that the time would
come when it would be legally possible for men to
get together in any line of business and a.grei'
upon prices, provided always that there should be
a supervising commission to decide, if the question
were raised, whether those prices were fair and
reasonable: and, furthermore, that when these
prices had thus been approved — as is the case with
the railroad rates today — the cutting of them
would no longer be considered a public benefit but
a misdemeanor in the eye of the law. Everything
points that way and now at last 'we have such a
commission, to which questions concerning cor¬
porate business may be submitted. I refer to the
h'ederal Trade Commission, headed by Joseph E.
Davies, who is reputed to be a broad and saga¬
cious man. It is no remote possibility that through
this new channel may flow wise and equitable de¬
cisions respecting some of the problems that have
sorely vexed us.
“The Federal 'I'rade Commission Act — which
practically creates a Board of Advisers to the De¬
partment of Justice — became a law in September,
1914, and it states, in Section V, “That unfair me¬
thods of competition in commerce are hereby de¬
clared unlawful.” It only remains to have this
term “unfair competition” defined— which the
Congressional committee itself has thus far been
unable to do — in order that we may know just
where we stand and perhaps enjoy the benefits of
this Act.
“In addressing a meeting of the Merchants’ As¬
sociation of New York last February, Mr. Davies
said : ‘The purpose of the law is to preserve the
great body of the business units of this country,
constituting ninety-nine per cent thereof, from the
menace of possible unfair competition of the other
one per cent.’ What more would we want?
“Among the other events which contributed to¬
ward making the conditions more trying than
usual this season was the investigation of the re¬
tail coal business here by the Federal Department
of Justice. The first evidence that an investiga¬
tion was on foot came in the guise of two or three
men who misrepresented themselves as retail buy¬
ers of coal and asked for prices at various yards,
with the probable expectation of unearthin,g a con¬
spiracy of some sort among the dealers. A num¬
ber of men were subpoened to testify before the
grand jury. Some of these witnesses were i.g-
norant of the facts ; others were of questionable
veracity, and still others were scared so stiff that
their ordinary functions refused to operate for
some days thereafter. While evidence of this
sort sufficient to indict a man may be easily se¬
cured, it requires a different kind of evidence to
convict him, and so the range of inquiry broad¬
ened. I had not been subpoened — -for reasons
which are not difficult to surmise — but was in¬
vited to go to the District Attorney’s office and
discuss the situation. This I was very glad lo
do.
“Considerable curiosity was displayed as lo the
retail prices and how they were arrived at; it was
even strongly intimated that I made them myself.
Information on this point, however, was easily
given. I admitted freely and without apprehen¬
sion, that I Used every argument at my command
to prevent the dealers from transacting business at
a loss or at a ridiculously inadequate profit. I
also admitted that I sometimes tinged the whole¬
sale dealers not to sell coal to certain people who
were wrecking the market, and the recent decisions
of the highest courts seem to indicate that I was
well within my legal rights in that respect.
“I invited the Assistant District Attorney lo in
sped the books and papers of the Coal Merchants’
.'\ssooiation, which he promptly did. spending an
entire day here with me and his assistant. 1 ex-
jilained to him that we were incorporated under
the laws of the State of New York, that our
rights were clearly defined, entirely adequate for
our needs and had never been over-stepped, and
demonstrated the truth of these assertions evident¬
ly to his satisfaction ; He saw the workings of our
credit and collection system, and the Coal Trade
Protective Association, which has killed the short
weight coal business in this town.
“At his request I again conferred with him at
his office. I informed him as to the number of
dealers who had quit the business in recent years
because they couldn’t make a living in it, and, as
he said that monopoly was the thing they were
trying to prevent, I endeavored to show him that
if things were made any harder for the dealers
than at present, more of them would be forced out,
until — carried to a logical conclusion — only a few
big dealers would be left and monopoly — the thing
he was trying to prevent — would have arrived.
“I then suggested that he examine the books of
a few of the largest dealers and find out — beyond
a iieradventure — whether there is any such thing
as one price for coal in this town and also what
avera.ge profit per ton the dealers arc making.
'I'his suggestion was adopted in one or two im
portant instances and I imagine that the results of
this inspection — so far as prices and profits are
concerned — must have been an eye-opener.
“I stated to the Assistant District Attorney that
if he would make the investigation a thorough one
and report his findings to the public he would con¬
fer a huge favor upon the retail coal trade and
that if no one else made the facts jmblic I would.
So I am merely keeping my word in stating them
lo you.
“You may recall that I expressed a belief in my
report last year that the Pennsylvania State Tax
on coal was unconstitutional and would be so de¬
cided if anybody had the nerve to contest it. It
has already been declared unconstitutional and
there is evidently some money coming back to you.
There seems to be a strong likelihood, however,
that the price of coal in- some sizes may be ad¬
vanced next spring unless reducing the number
of sizes shall also reduce the mining expense. The
cost of the compensation law in Pennsylvania ha.s
been figured out and will be equivalent to about
ten cents per ton ; but inasmuch as it would be of
doubtful expediency to add this ten cents to the
prices of the steam sizes, which come into com¬
petition with soft coal, the result of this compen¬
sation law will mean an additional cost of about
twenty cents per ton in the domestic sizes.
“The credit system inaugurated about eighteen
months ago is working so smoothly and success¬
fully that little need be said about it except to con¬
gratulate ourselves on having at last gotten some¬
thing as nearly perfect as a business proposition
can well be.
“For the first time in nine years we have had
no resignations from the Association, -in spite of
the fact that every legitimate dealer doing busi¬
ness here belongs to it.
“There have been submitted for collection ac- <
counts amounting to $106,3,37 and of these wc
have collected, up to November 30, $65,130, with
another month to go. The total collections for
the year will amount to over $70,000. Of 1,249
accounts submitted 791 have been collected, of
which 718 were gotten in through this office with¬
out legal action or any costs whatsoever to the
dealers who submitted them. The increase in the
collections to November 30, as compared with the
same period last year, amounts to over $12,000.
“It may be interesting to you to learn that dur¬
ing the last nine years we have collected for our
members more than $530,000, which means that
for every dollar paid in to run this Association wc
have handed hack, not only that dollar, but four
others with it.”
The Youghiogheny & Ohio Coal Company, with
offices in Cleveland and its Pittsburgh office in
the House building, purchased from the Carnegie
Coal Company what is known as the Charleroi
plant of the Carnegie Company. The purchase
price was $1,400,000. The property is situated
along the Monongahela river and consists of
1,100 acres of rich coal land. The Qiarleroi prop¬
erty formerly was owned by the Pittsburgh Plate
Glass Company and was acquired by the Car¬
negie Coal Company several years ago. The
Youghiogheny company is one of the largest coal
companies in western Pennsylvania, with exten¬
sive holdings in Washington, Green and West¬
moreland counties. It also operates in Ohio. The
purchase of the Giarleroi plant, the company
says, will add greatly to its coal output in west¬
ern Penn.sylvania. James G. Patterson is vice-
president of the Youghiogheny & Ohio Coal
Company ami i.s its Pittsburgh representative.
I December 25
532
TUP: BLACK DIAMOND.
News Local to Chicago.
F. S. Peabody spent a part of the week in New
York.
C. Aloderwell was one of the operators to
attend a meeting of the American Mining Con¬
gress directors at Washington last week.
A. J. Nason of the Twin Cities — he is financially
interested in the Nokomis Coal Company at No-
komis. Ill. — was a caller on the Chicago coal trade
on Tuesday of this week.
•Among the Chicago visitors within the week
was 11. M. Ferguson, general manager of the
Clinton Coal Company of Ginton, Ind. He was
here looking after business and incidentally doing
some holiday shopping.
E. A. Byrne, formerly connected with the
.Sunday Creek Company, has taken a position
with the Maynard Coal Company, selling Hocking
coal in Chicago. His offices are in the Old Colony
building, where he is associated with E. E. Heiner.
Ve editor is in receipt of a green leather hill
fold from Herbert H. 'faylor of the Taylor Coal
Company. It is one of the souvenirs of the
season which he is distributing. Herb is a good
provider, as witness his attention to purses. Come
again. Herb.
Edward T. Bent, who has just passed through a
long sie.ge of sickness is out again and is gaining
strength and weight slowly. His normal weight
is l.')0 pounds, hut his attack reduced him to 120
which he says he is regaining at the rate of about
a half a pound a week.
Carl Scholz, president of the American Mining
Congress was in Washington the latter part of last
week. He attended a meeting of the committee on
mines and mining relative to the new mineral land
laws. By the especial recpiest of the secretary of
the interior, no national laws hearing on coal will
he discussed by this committee just now.
I. L. Runyan, secretary of the Illinois & Wiscon¬
sin Retail Coal Dealers Association, will leave on
Monday for Galesburg where he will spend the
forenoon of Tuesday. He will go that afternoon
to McComh and will spend Wednesday at Kewa-
nee. At all three places he expects to hold meet¬
ings of retail dealers in the interest of the
as.sociation.
The transportation department of the Big Four
has begun taking precautionary measures in case
of a strike of coal miners next spring by erecting
mammoth storage sheds along its system. At
Mattoon, Ill., there has been placed in storage,
in, 000 tons of coal. Contracts have been let for
storage sheds at other points along the line, nota¬
bly at Hillsboro and Duane. At Cincinnati the
road has completed the storage of coal in such
(piantities as to outlast any strike and keep the
road in good supply until next fall.
The announcement is made that the Ferguson-
.Spears Coal Company is opening a new mine to
the Number Four vein at Clinton, Ind. The
parties responsible for this new company are the
.general mana.ger and the chief engineer of the
Clinton Coal Company of the same point. I’he
plans are interesting, as the intention is to drive a
tunnel under the Wahash river at that point to
get to part of the coal land. It is said that the
vein at that point produces a coal having a rather
unusual fracture and to be of exceptional quality.
■Most of this week was taken up by the opera¬
tors in a hearing before the Illinois Utilities Com¬
mission. It will be recalled that the railroads a
short time ago fded tariffs calling for an increase
of five cents a ton in the coal rate to Chicago and
to all points not reached by the recent decision of
the commission in the western advance rate case.
It will be recalled also that the Illinois and In¬
diana operators protested against this rate and
asked specifically the suspension of the tariff. It
will also be recalled that the Chicago Coal Mer-
cahnts’ Association made a protest against the
rates. The matter came up on Monday for the
first hearing before tbe state commission and most
of the week was spent in taking testimony. The
railroads presented their matter first and then the
operators presented their side of the case. It
was the same old fight which has been on for tbe
last few years. The railroads attempted to
prove that they need and must have the money.
The coal men tried to get it into the railroad Iiead
that the operators cannot absorb tins increased
rates out of their earnings. They said that this
was impossible for the sim|)le reason there are no
coal earnings. To try to* pass the rate on to the
consumer is hopeless because of the competition
afforded by other fields. This ground has been
gone over a good many times and before a num¬
ber of commissions. Still, the state commission
tackled the job as though this were the first time
the testimony had ever been presented. The bet¬
ter part of the week was consumed by the rail¬
roads, which had taken their tip from the pre¬
vious activities of F. H. Harwood and G. W. Reed
and had prepared elaborate exhibits. These were
reduced to blue prints.
According to tbe records which have just been
compiled, the larger interests — the railroads, pub¬
lic utilities companies and the like — in this terri¬
tory are going to store about ,'5, 000, 000 tons of
coal to protect them against the possibilities of a
mine strike. The average price on this coal will
be about $0 a ton. This means that the cost to
these consumers will be, in round numbers, close
to $t), 000,000, The statement w'as compiled in
part from the records of the purchasers but it
seems to have been made up mainly from the fig¬
ures supi)Iied by those who sold the coal. As
this indicates, the buying for storage is, so far as
the larger consumers are concerned, a matter of
history. The smaller buyers have still to cover
their needs and it is expected that this will ag¬
gregate more than another li, 000, 000 tons. Still,
with the larger orders out of the way there is
not so much coal buying to be done as would in¬
fluence the price seriously. The statement which
has just been compiled and made available for
publication shows the following amounts for tiie
various companies ;
Purchaser — Tonnage.
New York Central . 140,000
Michigan Central . 200,000
lUg Four . 70,000
(irand Trunk . 80,000
Soo Line . 15,000
Pennsylvania . 00 days
North-Western . 200,000
St. Paul . 400,000
Hurlington . 200,000
Illinois Central . .‘500,000
Chicago & Alton . 100,000
.Steel Corporation . 300.000
Commonwealth Edison . 300,000
Standard Oil Co . 50,000
Stock Yards . 150,000
In the case of the Steel Corporation, North-
Western and the Standard Oil Company it is un¬
derstood that these amounts will he expanded until
they equal what will be a sixty days’ supply. Of
tbe various prospective buyers, the Illinois Cen¬
tral has done nothing. Neither have the stock
yards. The Alton, the Steel Corporation and the
Standard Oil have just started to put in their
storage coal. That of the Commonwealth Edison
Company is all down. The other buyers eitb.er
have their coal down in major part or are re¬
ceiving final shipments. In addition to these buy¬
ers tbe International Harvester Company and the
railroads now in the hands of a receiver will do
some storing but their programs have not been
mapped out in full.
The Loaded Purchase.
(Concluded from page 527.)
"and stick to straight liquor. That green stuff
is going to your head.”
"Never mmd the green stuff,” I retorted. “You
know what 1 say is the truth.”
"I know nothing of the sort.”
"Well, if you don’t, suppose you wake up and
take a look at some of our pompous coal barons.”
"If a lack of brains,” he stated gravely, “were
the only requisite for the accumulation of riches
in our line, then you. Bill, indubitably, would be
the Croesus of the coal trade.”
"Is that so !” I scoffed.
"No. it is not. There is a problem in the coal
trade demanding in its solution, more brains than
have ever been put to it. Baer came very nearly
working it out but he got an exotic notion of
divinity tangled up in his destiny which threw
him down. Any one can mine coal. That oper¬
ation is laid down upon well establi.shed principles
of engineering. The problem in the industry is
to sell the stuff.”
"Right you are,” I broke in, “and if there were
anv definite principles upon which salesmanship
could be based, there would be no problem. The
fact that the problem exists proves my contention
that our business is a game of chance.”
“That is good logic,” smiled Jim, "hut like most
logic, it is unconvincing.”
"For the love of Alike!” I exclaimed. "I am
talking about luck in the coal business, and now
von start pulling this abstract stuff about logic.
Don’t get started because it doesn’t get you any¬
where. One fact is worth a dozen theories. Now,
just let me .show you where a man gets off on
this luck [iroposition. Let me tell you what
actuallv happened to me a couple of weeks ago.
Thereupon I recounted to him the details of my
encounter with the Frenchman. He listened with
a bored expression. When I reached the point in
mv narration where the exchange of cards took
l)lace in the club, he took a pencil from his
pocket and idly printed the name, M. I. J. Dnani-
dref, upon the tahlecloth. Then he underscored
each letter of the name in the reverse order —
F-e-r-d-i-n-a-n-d, J-i-m.
So engrossed was I in telling my story, I did
not in the least comprehend the significance of
his little hy-play. I went on with my story to the
end.
“And,” I finished, “I cleared the boat and
cashed my draft. Dnanidref, happy as a kid,
sailed home as the captain’s guest on the Comet.”
"The damned fool!” ejaculated Jim, straighten¬
ing up in surprise.
"He sure was,” I agreed. “He was worse than
a fool. He was nutty, and when a good thing
like that falls into your hands out of a clear sky,
vou claim there is no luck about it, do you?”
•T do.”
“Well, how do you figure it out?”
“I don’t have to figure it out. I did that three
months ago.”
“What do you mean?” I did not fancy the
grim alignment his features assumed. He seemed
to ponder and did not answer immediately.
"Your question. Bill, makes it plain you have
forgotten how many times I have found you
alone in your office at noon ; makes it plain, you
considered it purely an accident when a hlue-eyed,
bristle-topped German, in the theatrical habili¬
ments of a burle.sque h'renchman, planted himself
before your door at that hour; makes it plain,
you concluded without the least circumspection
that you had the key to his intentions when your
stenographer rejjeated to you the pervious lie he
had meaningly let fall into her hands under the
pretense of drunkenness ; makes it plain he acted
bis assigned part well ; makes it plain, your
cupidity caused you to gulp down a crude mys¬
tery about a chemical without once questioning
it.”
"A'ou mean to say,” I spluttered, but he cut me
oft'.
“I mean to say,” he persisted deliberately, “you
think you sold a cargo of coal at an outrageous
price to a crazy foreigner on a streak of luck.
■As a matter of fact, this fellow, Dnanidref, as
you know him, sold you a gold hrick!”
"Sold me a gold brick:” I screached. “Don’t
make me laugh. I have a sore lip !”
“I won’t. But it may chill your merriment to
know it is a felony to clear a vessel on a falsified
bill of lading. The law would fail to hold culpa¬
ble, however, one who unknowingly and unwit-
tedly cleared a cargo falsely. To convict it would
he necessary to prove criminal intent.”
"What sort of chatter is this, anyhow?” I de¬
manded with asperity.
"It is chatter on a mere matter of detail — a de¬
tail which enables the Blackbelt Company to pay
me an extra dividend of $8,000 on my stock;
which enables it to do this with impunity since,
in forwarding the coal for the Comet, the mine
acted on your instructions, as your agent, and
you became the answerable principal — a principal,
however, whose legal responsibility was set at
naught through childish gullibility.
"Man, you are raving,” I cried.
“A’ou flatter me. Bill, Init in your ravings mark
you these things; Oxide of copper, CuO, is
black. When pulverized and mixed with bitu¬
minous coal it cannot be detected except by a
cbemical analysis. Now, set fire to coal impreg¬
nated with copper oxide and the oxygen in the
coi)per combines with the carbon in the coal, go¬
ing oft as carbon dioxide gas. The pure copper,
Cu, melts and runs down with the ash, losing
slightly in weight on account of the deoxidiza¬
tion. Reheat this mass of ash and copper and the
ash, being tbe lighter, passes off as a flux, leaving
pure metallic copper in the crucible. Germany
needs copper ; needs it more than she needs ben¬
zol and toluol ; needs it more than you need a les¬
son in constructive salesmanship. .And 1, Bill, —
I, whom you look upon as a lily of the field, toil¬
ing little but spending much, need the money !”
meeting of the executive committee of the
Pittsburgh Vein Operators’ Association in Ohio
held a meeting Monday, but it is not known wheth¬
er the United Aline Workers’ request for a re¬
newal of the joint agreement was discussed or not.
The operators are adhering to an attitude of sil¬
ence as to their views on this matter, for the
present ,and it is impossible to give any idea as to
what course they will take. Doubtless, they will
give the miners’ organization a reply when they
feel that it is best to do so.
The British steamer Rose Castle, having com¬
pleted her charter to the Dominion Coal Corn-
pan v, sailed recently from Portland with a cargo
of 5()(),()00 bushels of wheat for England. The
steamer has been taken over by the British gov¬
ernment for war service.
No. 26]
THE BLACK DIAMOND
Facts Which Determine Our Export Prospects
533
49,296
99,717
97,956
33,498
29,750
West
Africa — Portuguese. .
6,156
Average Welsh Coal Rates.
In its issue of December 3rd, the Cardiff Jour¬
nal of Commerce gives some interesting figures
showing the average coal freights from the
United Kingdom for August, September, October
and November of this year. Attention is called
to the constant appreciation in rates from the
commencement of the European war in August,
1914. Says this paper: “The reason for the
enormous appreciation is to be found in the fact
that the world’s available tonnage is distinctly
below the requirement of the commercial com¬
munity. The requisitioning of a couple of thou¬
sand steamers by, the Quadruple Entente and the
tonnage sunk by the German submarines and
striking mines, has seriously depleted supplies,
while the calling home to Greece of all the Greek
steamers towards the close of September, further
accentuated the tonnage shortage. In fact,
charters in all quarters of the globe have for the
past three months been in active competition for
steamers to transport their commodities from one
country to another. The tonnage supply is totally
insufficient and to meet the requirements, rates
have daily advanced. With tonnage supplies
totally insufficient to meet requirements, rates
have of late daily advanced by shillings per ton.
The full extent of the appreciation in outward
coal freights from the United Kingdom is clearly
in the following table, giving the average rates
during August, September, October and Novem¬
ber to representative ports from Cardiff and the
Tyne :
f
Aug.
Sept.
Oct.
- ^
Nov.
Cardiff to —
Algiers .
. . .26.61
35.00
44.11
49.60
Alexandria . . .
. . .27/0.14
32/9
44/6
48/6
Bordeaux . . . .
25.17
29.84
36.78)4
Barcelona . . . .
. . .19/2
27/10)4
35/3
38/1)4
Dieppe .
15/2
16/-
16/-
(lenoa
. . .24/1)4
31/4
40/2)4
48/6)4
Gibraltar .
. . .1.5/6
21/7)4
27/954
30/5)4
Havre .
.. .12/9
14/4)4
14/9)4
l'?'/9)4
Lisbon .
. . .14/10)4
19/1
2.3/6
27/554
I-.as Palmas...
.. .17/-
18/6
28/4
29/4)4
Marseilles . . . .
38.25
49.25
.58.42)4
Port Said .
...26/1)4
33/4
44/4)4
51/8
Rouen .
. . .14/11
16/-
16/954
19/1054
River Plate...
. . .22/6)4
29/4)4
40/5)4
38/5
St. Nazaire...
22.54)4
27.36)4
35.35
Valencia .
...17/-
26/-
31/10)4
33/6)4
1. yne to —
Algiers .
. . .23/-
27/-
32/9)4
38/
Bordeaux ....
. . .19/11
22/11
26/1)4
35/ 954
Genoa . . . .
33/254
44/7
53/10)4
Havre .
.. .13/9)4
17/3
16/9
21/8)4
Las Palmas...
. . .18/7
23/11
31/1
26/6
London .
... 7/244
8/7)4
9/4)4
13/7)4
Marseilles . . . .
. . .28/-
31/C
41/154
45/1
Exports at Hampton Roads.
Coal export loadings at the three Hampton
Roads ports and Baltimore for the past week
have been as follows :
I.AMBERTS POINT.
Date. Vessel and Destination.
12-1.0 Am. S. S. Achilles. Cristobal, C. Z.
12-10 It. Ilk. Nostra S. Del Carmine, Genoa,
, Italy . . . 2,074
12-15 Nor. S. S. Sosua, Kingston, Jamaica.. 1,131 213
12-17 U. S. N. Collier Cuclops, Cristobal,
C. Z. . 10,315 . . .
12-17 Am. Sell. Richard W. Clarke, St.
Georges, Bermuda . 068
12-17 It. Bk. Nostra Signora Assunta,
Genoa, Italy . 1,920
12-17 Nor. S. S. Tabor, Curacao, D. \V. 1. 5,387
12-18 It. S. S. Mar Terso, Spezia, Italy.... 3,965 003
12-20 It. .S. S. Juno, Italy — any port . 4,950 730
12-20 Dan. S._ S. Nordland, Manzanillo, Cuba 1,519 177
12-20 It. .S. S. Tea, Italy — any port . 7,100 650
12-20 Hr. S. S. Clarissa Radcliffe, Italy—
port . 8,050 750
6,907
SEWAI.LS POINT.
12-15 It. S. S. Patras, Genoa, Italy . 4,147 553
12-16 Am. S. S. Moldegaard, Chaparra, Cuba 3,954 386
12-20 Am. Sell. Magnus Manson, Pernam¬
buco, Brazil . 2,393 ...
10,494
NEWPORT NEWS.
12-16 Br. S. .S. Northmount, Trinidad . 2,518 415
12-18 Br. S. S. Wellington, Havana, Cuba.. 2,041 232
B.M/ITMORE.
12-16 Dan. S. S. Absalon, Havana, Cuba.. 3,193
12-16 Am. .Sell. Edward B. Winslow, Rio de
Janeiro, Brazil . 5,000 21
12-17 Br. S. S. Clavercsk. Eelton, Cuba.... 6,100 400
12-17 Nor. .S. S. Byland, Preston, Cuba.... 3,523 411
Bunk-
Cargo. ers.
...12.022 1.098
17,816
Welsh Coals and Vessel Rates.
Latest advices from Cardiff under date of
December 10 show quietness in the coal trade,
chiefly as a result of the shortage of tonnage.
Quotations, therefore, are irregular and entirely
governed by the position of individual colliery
operations. Best admiralties are not quoted, sec¬
onds selling at 2'ls to 22s, black veins 21s to 21s
t)d ; western valleys, 20s to 20s 6d ; eastern valleys,
19s to 19s 6d. Prices were irregular in the small
steam coals.
Recent charters have been made from Cardiff
to Buenos Aires at 39s; Marseilles, 7.5 frs. ; Gib¬
raltar, 32.S ()d ; Rouen, 23s; Bordeaux, 44 frs.;
Havre, 21s; Dakar, 3.5s; Montevideo, 3Ss ; Port
Said, 62s ; Genoa, 54s to 56s.
From the Tyne 37s to Bordeaux; 62s 6d to
Genoa; 50s to Marseilles; 62s 6d to Sicily.
Philadelphia November Exports.
E.xports of coal from the port Of Philadelphia
during the month of November, 1915, were as
follows :
Anthracite, Bituminous,
Italy .
Sweden .
Canada .
Costa Rica .
Tons.
. 48
Tons.
4,992
8,536
1,501
3,011
2,880
Guba . .
. 2,045
28'iHr3
7,818
1,766
3,828
11,088
San Domingo .
Argentina .
Brazil .
2,763
73,985
Baltimore November Exports
The custom house statement of bituminous
coal exported from the port of Baltimore during
the month of November, 1915, is as follows:
Country — Tons.
Italy . 19,220
Sweden . 3,46fi
Honduras . 1,001
Cuba . 4,741
Santo Domingo . 1,331
French West Indies . 2,292
Argentina . 4,008
Kgypt . 7,048
43,830
English Coal Exports.
The English Board of Trade returns relating
to the export of coal to foreign countries afford
interesting reading. In only about three instances
are increases shown during the ten months of the
year, the i)rincii)al one being France, which has
taken nearly one and three-quarter million tons
more than in the corresponding period of last
year. The following table shows the quantities
exported to the various foreign countries and
British possessions during the year, together with
the increase and decrease respectively compared
with the corresponding period of 1914:
Ten months
ended Oct. Increase,
Tons.
Russia . 5,707
Sweden . 63,404
Norway . 73,254
Denmark . 32,479
Germany .
Netherlands . 25,377
Java . 6,550
Other Dutch i)ossessions in
the Indian Seas .
Belgium .
France . 7,282,226
.\lgeria . 354,395
French Somaliland . 27,584
■Madagascar . 13,554
Reunion (Bourban) .
Portugal . 544,701
Azores . 32,253
•Madeira . 44,165
.Spain . 698,498
Gar ary Islands . 184,381
Italy . . 2,731,555
Italian East Africa . 5,043
Austria-Hungary .
(ireece . 180,819
Bulgaria .
Roumania .
Turkey — European . 6,557
Turkey — Asiatic . 3,767
Tripoli .
Tunis
Ghina
Japan .
Guba .
Peru . 138
Ghile . 30,436
Brazil . 348,033
Uruguay . 205,784
Argentine Reintblic . 1,079,706
Ghannel Islands... . 33,810
(iibraltar . 167,675
■Malta and Gozo . 99,751
Egypt . . 687,347
Gape of (rood Hope . 6,401
Anglo-Egyptian Sudan . 22,378
.Mauritius and Dependencies 8,813
Aden and Dependencies. . . 105,623
British India . 18,917
.Straits Settlements . 2,200
Geylon and Deirendencies . 36,160
Hong Kong .
Western .Aif^tralia .
Canada . 394
Bermudas .
British West India Islands 2,573
I'alkland Islands . 27,501
Tons.
82,417
1,706,205
5,033
Decrease,
Tons.
353,828
99,600
37,153
18,230
174,423
45,820
7,062
28,128
246,922
72,681
8,974
6,260
10,647
37,531
22,789
14,12;
371,82!
175,78i
1,493,97;
11,81!
127,74!
88,54!
03,23!
183,53;
101,20!
166,94:
8,03;
50,711
9,93;
5,30s
5,791
12,82!
200,32;
494,76!
231,45;
1,137,54;
22,661
1,171
144,921
786,251
19,641
14,211
3,641
24,99!
86,071
14,64;
187, 21S
10,361
4,90!
12,67;
10,531
13,95:
Foreign Freight Rates.
VV. W. Battle & Co.’s Produce Exchange, New
York, report as follows under date of Decem¬
ber 20 :
Steamers are even more difficult to obtain than
a week ago, and although we have chartered a
number of boats during the interval none of these
fixtures have been reported. Freight rates are at
about the same level as a week ago.
We would quote freight rates on coal by
steamer as follows :
West coast of Italy, 95s to 100s; Marseilles, 90s to
9.)s; Barcelona, or other good Spanish port, about 90s
1. Spanish dues for account of cargo).
Note. — Charters for Italy, France and Spain read:
“Lay days to commence on steamer’s arrival at or off
port of discharge. Is per net register ton per day de¬
murrage.”
Montevideo, 52s 6d to 55s, 500 discharge: Buenos
.\ires or Ea Plata, 52s 6d to 55s, 500 discharge; Rosario,
55s to 60s; Rio de Janeiro, 50s to 52s fid, 500 discharge;
.Santos, 50s to 55s (consignees paying docas dues).
Valparaiso or Callao, $12 to $13; Havana, $3 to $3.25;
Cardenas or Sagua, $3.50 to $4; Cienfuegos, $3.75 to
$4; Port of Spain, Trinidad, $4.75 to $5; St. Lucia,
$4.75 to $6; St. Thomas, $4.25 to $4.50; Barbados, $4.75
to $5; Kingston, about $4.25; Curacao, about $4.50 and
]). c. : .Santiago, $4 to $4.25; Guantanamo, $4 to $4.25;
Demerara, $6.50 to $7 ; Bermuda, $4 to $4.25; Vera Cruz,
$5.50 to $6; Tampico, $5.50 to $6.
Recent Coal Freight Charters.
Str. p'arwin (Br.), Philadelphia to Rio de Janeiro,
coal, private terms, “Prompt.”
Str. Isthmian, Philadelphia to Rio de Janeiro, coal.
Str. Bygland (Nor.), coal, Baltimore to Boca del Toro,
private terms.
Str. Claveresk (Br.), coal, Baltimore to Felton, pri¬
vate terms, “Spot.”
Str. Platia ((Ireek), 1,956 tons, coal, Norfolk to River
Plate, 523 6d, “December.”
Schr. Gov. Powers, Baltimore to Porto Rico, coal,
private terms.
Schr. Mary A. Hall. Philadelphia to Cardenas, coal, $2.
Sclir. Isabel B. Wiley, Philadelphia to Rio Grande do
Sul, coal, $9.
Schr. Dusten C. Cressey, Philadelphia to Porto Rico,
1,500 tons, coal, private terms.
Schr. Jarstein (Nor.), New York to St. John’s, N. F.,
coal.
Schr. William C. May, Norfolk to Cartagena, coal,
$5.30 net.
Str. Platea (Gk.), Virginia to River Plata, coal, 52s
6d, “Dec.”
Schr. Moama (Br.), Philadelphia to St. John, N. B.,
coal, private terms.
Schr. Richard W. Clark, Virginia to Bermuda, coal.
$3.75.
Schr. Adelide W'. Barborer, Baltimore to Porto Rico,
coal, private terms.
Schr. George h. W^alcott, Philadelphia to Buenos Aires,
2,300 tons, coal, private terms.
Schr. Charles Davenport, Philadelphia to Porto Rico,
coal, private terms.
Str. Mar Cor (Ital.), Norfolk to West Italy, coal, OOs,
“Prompt.”
Bark Snowden, Baltimore to Buenos Aires, coal, $9.
Str. Absalom (Dan.), Baltimore to Egypt, coal, privte
terms.
Schr. Edith, Hampton Roads to Porto Rico, coal, $3.75,
port charges.
Rates from Great Britain to Spain.
[Consul Robertson Honey, Madrid, November 15.)
Tlie Re vista de Economia .v Hacienda, pub-
li.shed in Madrid, quotes freight rates on coal
from Great Britain to Spain and compares them
with rates of 1914. The quotations are in Brit¬
ish shillings and pence, equivalent, respectively,
to 24.33 cents and two cents each. The rates
from the various British ports to Spanish desti¬
nations are :
1914. 1915,
I'rom Cardiff to — s. d. s. d.
Huelva . 6 6 26 0
Cadiz . 6 9 28 6
Valencia . 10 0 32 3
Tanagona . 10 0 31 0
Barcelona . 9 3 37 6
I.as I’almas . 7. 0 25 0
Sevilla . 10 6 27 0
From Newport to —
Bilbao . 0 6 19 0
Sevilla . 13 6 21 0
I'rom Swansea to —
Alicante . 13 0 32 0
Huelva . 8 0 26 0
Valencia . 8 6 32 0
Barcelona . 10 fi 32 0
Erom Tyne to —
Barcelona . 17 0 38 0
Malaga . il 0 35 0
Las I’almas . 9 1 27 6
Cadiz . 13 0 30 0
The week opened with no letup in the demand
for steel, says the Wall Street Journal. Europe
would take .500, 000 tons of semi-finished steel if
the mills were able to .suppl.v it. .Ys it is, pre¬
miums of from $2 to $.■) a ton arc being paid for
certain classes of steel for delivery in the near
future. Prices for steel continue to advance, but
domestic consumers are given the preference in
both prices and deliveries over foreign con¬
sumers. The mills, as a rule, close for a short
[leriod in December, due to the holidays, hut
there will he little idleness this year, owing to
congested conditions.
534
THE BLACK DIAMOND
[December 25
General Review.
The National Market Is Spotty, with
Strength in Some Districts and
Weakness in Others.
Some weeks ago, attention was called to the
unusual character of the coal market for this year.
That is, the lack of preparation for winter on the
part of the householders and retailers, and the
lack of forehanded buying on the part
of the steam users i)romised to reverse the
regular order and bring strength in December
prices. Today, the realization of that forecast is
the b’.g feature in the coal market. All the lack
of preparedness has come to a focus east of the
.Alleghenies because of a terminal congestion
there which has slowed up the movement of cars.
In consec|uence, prices have risen to abnormal
levels. In places, new records have been estab-
lisbed.
The crux of the whole situation seems to be
the New England trade. Both householders and
.'iteam users have been warned of a coming short¬
age of coal. At the same time they knew that
cold weather and a big upturn in business were
sure. They disregarded the warning. That
district being a long way removed from the mines
depends mostly on water transportation. In that
direction. New En.gland has been in competition
with the warring countries for the supply of boats
and lost out. That left the railroads, mainly, to
carry coal to that district. They were not many
and were not yet equipped for any such rush of
business. In consequence, coal headed for New
England could not get through the various ter¬
minal blockades and prices rose accordingly.
There was no virtue in the eastern coal pro¬
ducers selling their product at a low price to near¬
by consumers when they could get a fancy price in
New EIngland. I'lierefore the prices which Bos¬
ton bid for coal dictated what the market would
be all through the east. The result was a run¬
away market until the railroads placed embargoes
on all coal movements in that direction. The
placin.g of embargoes removed Boston as the dic¬
tator of eastern coal prices. The operators left
with a narrowed and normal market for their
product — but still with a shortage of cars — modi-
lied their price programs. The spot figures re¬
ceded from the abnormal level but did not get
down to normal circular at that. Thus, at the
minute, the coal situation in the east is intense
with transportation, the keynote of the whole mat¬
ter.
For the reason that the transportation situation
in the west is the reverse of what it is in the east,
the western coal market is the reverse, almost, of
what it is in the east. That is to say, west of the
.Alleghenies the trade is influenced by another
water route. The lakes have just been closed for
the year. This turns back into the all-rail chan¬
nels not only the coal which has been going to the
lakes but tbe cars which have carried that coal.
Thus west of the Alleghenies there is a little more
coal than there is demand ; there are a few more
cars than are actually needed ; there is no sug¬
gestion of terminal blockade ; and, in consequence,
prices are at circular or a little below.
The one thin.g operating to strengthen the west¬
ern market now is the buying of coal for storage
purposes. Information made public within the
week is to the effect that there will be no mine
labor trouble, this year, outside of Pennsylvania.
The miners are going to strike at the anthracite
operators first. Unless they can bring western
Pennsylvania up to Ohio’s level and to somewhat
nearer the Illinois level, there will be trouble
there. Still, they do not plan on any other
strikes.
This shadow of a promise does not convince the
larger consumers of coal. They must protect them¬
selves until it is assured by formal agreement that
there is to be no strike. As a measure of pre¬
caution, the larger users have bought and will
put on the ground about 3,000,000 tons of coal.
This does not include the buying which must be
done by the factories and the smaller public util¬
ities companies. They will probably buy another
.3,000,000 tons or more. Still, it does not mean
that quite a tonnage has already been sold. This
tonnage was placed without disturbing western
prices perceptibly.
No doubt the accumulation of this coal at rea¬
sonable prices was made possible by the fact the
retailers and consumers have not been forehanded
in their buying. The only perceptible effect upon
the market has been to turn December, normally a
month of weak prices, into a month when good
fi.gures have been obtained and when the mines
could run reasonably full time.
Chicago Market.
Buying Is a Little Heavier, Due to
Weather — Screenings Prices
Advance a Nickel.
Office of The Black Diamond,
Chicago, December 23.
The fact about the market in the zone reached
throu.gh Chicago is, for the week, that the weather
has been colder and consumption of domestic coal
has been heavier but buying by rct.ailers has been
only slightly greater. Cars are still plentiful. I'he
prices of steam coal have gone up, due in part to
demand, but due also in part to the fact that mine
production has not been increased.
The steam trade demands most attention. The
first matter of importance is the fact, revealed
within the week, that storage coal to tide over the
period of mine suspension has been bought to the
extent of nearly 3,000,000 tons of coal. A good
part of this has already gone into storage. The
remainder which has been bought in part is now
movin.g into storage. This means that the steam
coal storage movement on the part of the rail¬
roads and larger interests is now behind the
trade. Its influence on prices has therefore,
been felt and discounted. This leaves only the
storage buying by the smaller interests to in¬
fluence the market prices after the turn of the
year.
Whether due to this storage movement or
whether due to short production, fine coal has
been strong in the west, rising five cents a ton
easily to eighty-five or ninety cents a ton. In
some cases, as much as $1 has been paid.
The rather easy tone of domestic coal is ac¬
counted for by the fact that we are approaching
the turn of the year when the dealers, in many
cases, take an invoice and when they wish to have
their stock on hand reduced to near minimum.
They have had better business but have not bought
to cover recent shipments. This strengthens the
technical situation.
h'ranklin county operators had almost cleaned
iq) their stocks of unsold coal at the mines at the
close of last week. Then the weather became
softer, buying eased, and the accumulation started
again. By mid-week this had approximated 1,000
cars of the sizes above two inch. Everything
smaller sold freely, screenings bringing eighty-
five cents as a minimum and some sales being
made at ninety-five. Prices up to Thursday
were :
F. O. B. F. O. B.
Franklin County — Chicago. Mines.
Lump . $2.30 $1.75
Egg . 2.80 1.75
No. 1 nut . 2.80 1.75
No. 2 nut . 2.55 1.50
Mine run . 2.15@2.20 1.10@1.16
2-inch screenings . 1.90@1.95 .85@ .90
'I'he Williamson county operators have been
holding firm for the circular price which is no\l
$1.75. To be sure there were occasional lapses
from this figure, even as was the case in the
whole of the southern district. Still, the opera¬
tors are so confident of tbe future market they
are holding their coal for a full circular price or
are not mining it. Fine coal has been strong.
F. O. B.
F. O. B.
Williamson County —
Chicago.
Mines.
Lump .
$2.80
$1.75
Egg .
2.80
1.75
No. 1 washed .
2.80
1.75
No. 2 washed .
2.45
1.40
The Saline county operators
have been
getting
good prices for their fine coal but the lump and
e.gg has been selling all the way from circular of
$1.75 down to $1.10. Screenings have brought
eighty-five cents as a minimum with higher prices
(pioted. The market up to Thursday was :
F. O. B. F. O. B.
Saline County — Chicago. Mines.
Lump . $2.65@2.80 $1.50@1.75
Mine run . 2.20 1.15
Screenings . 1.90@1.95 .85@ .90
154*inch lump . 2.35 1.30
Central Illinois coal has been soft. Lump coal
has hardly been moving at all, although the egg
coal has had a good demand in the steam market
at prices rangin.g around $1.15 to $1.20 at the
mines. Screenings have been stronger at eighty-
five to ninety cents.
Central Illinois —
Lump .
Egg .
Nut .
Mine run .
Screenings .
F. O. B.
Chicago.
$2.32@2.67
2.32@2.47
2.47
1.87
1.62@1.72
F. O. B.
Mines.
$1.26@1.75
1.60@1.66
1.65
1.05
.80@ .90
Clinton Number Four coal has been in good de¬
mand in Indiana but little of it has been coming
here. The ruling price has been between $1.65
and $1.75 at the mines. Number Four screen¬
ings have sold at $1 but the other vein coals have
been selling at ten cents less.
F. p. B. F. O. B.
Clinton — Chicago. Mines.
No. 4 domestic lump . $2.42@2.57 $1.65@1.75
No. 4 egg . 2.27 1.60
No. 4 nut . 2.12 1.35
No. 5 and 6 mine run . 1.87 1.10
No. 5 and 6 screnings . 1.62@1.67 .85@ .90
Knox county screenings have sold at ninety
cents to $1 but the demand for the domestic sizes,
except in the home state, has been rather small.
Knox County —
Lump .
Egg .
Mine run .
Screenings .
F. O. B.
Chicago.
$2.37
2.37
1.92
1.77@1.87
F. O. B.
Mines.
$1.50
1.60
1.05
.90@1.00
The cold weather influenced the anthracite trade
favorably. Still, the market has been surprisingly
dull at that. The dealers are not taking coal,
even as the householders are buying in driblets.
No one seems concerned over the coming sus¬
pension of the mines. They care less for the
fact that anthracite production up to the close of
the year is about 3,000,000 tons short of normal.
An authoritative statement has it that 1,000 cars
of smokeless lump and egg was diverted from the
lakes to the western trade. To be exact, the di¬
version amounted to 48,000 tons. This caused the
recent break in that market. Most of the larger
companies are now free of demurrage coal and are
holding for the circular figure. However, some
stuff which has a liberal mixture of slate has been
sold in this market lately below $1.50. The mine
run coal is about steady at circular price but the
retailers say they are not in the market until after
the turn of the year.
F. O. B. F. O. B.
Smokeless — Chicago. Mines.
Mine run . $3.30@3.45 $1.25@1.40
Lump and egg . 3.90@4.05 1.85@2.00
Somerset county coal has been in such demand
in the east and prices there have been so much
more attractive, shipments to the west have been
just large enough to satisfy contracts.
Somerset County —
Mine run .
Lump and egg .
F. O. B. F. O. B.
Chicago. Mines.
$3.46 $1.40
3.80 1.75
The Hocking situation is stren.gthened by the
fact that all of the Sunday Creek mines are closed
down due to labor disturbances. Other produc¬
ers have regulated shipments so that prices are
firm.
F. O. B. F. O. B.
Hocking — Chicago. Mines.
Domestic lump . $3.25@3.40 $1.60@1.75
The splint coal situation continues to be good.
The big eastern demand coupled with a steady
run of orders from the west makes this market
firm but not especially strong.
F. O. B. F. O. B.
Kanawha — Chicago. Mines.
I'/l-inch lump . $3.40@3.50 $1.50@1.60
The eastern Kentucky coal has had a slightly
better demand due to the weather but the upturn
was not strong enough to change the prices.
Eastern Kentucky —
Domestic lump .
Egg .
F. O. B. F. O. B.
Chicago. Mines.
$3.55@4.30 $1.65@2.40
3.40@3.90 1.50@2.00
The coke market has been in good condition in
both departments. Prices on the hard cokes have
been steady. On the domestic sizes, the weakness
recently noted is .gone and demand in some quar¬
ters is booming.
F. O. B.
Coke — Chicago.
Connellsville . $5.25@6.60
By-product, foundry . 6.25@6.60
By-product, egg and stove . 4.95
By-product, nut . 4.95
Gas house . 4.50
Coal Land Sale.
One of the largest coal land transactions con¬
summated in western Pennsylvania in many years
was closed when Youghiogheny & Ohio Coal
Company purchased from Carnegie Coal Com¬
pany the Charleroi plant of Carnegie Company.
Purchase price was $1,400,000. Property situated
along the Monongahela river consists of 1,100
acres of rich coal land and will be transferred
immediately.
The Charleroi property formerly was owned
by the Pittsburgh Plate Glass Company and was
acquired by Carnegie Coal Company several
years ago. Youghiogheny Company is one of the
largest coal companies in western Pennsylvania,
with extensive holdings in Washington, Greene
and Westmoreland counties. It also operates in
Ohio.
Dr. T. D. Scales, of Boonevilic, a well-
known southern Indiana coal operator, has
entered the race for the Democratic nomina¬
tion for Congress from the first district. He
has been in the first district this week look¬
ing after his political fences.
No. 26 J
THE BLACK DIAMOND
535
Pittsburgh Trade.
An Acute Car Shortage Complicates a
Coal Situation Made Strong by a
Brisk Steam Demand.
Office of The Black Diamond,
1502 Oliver building,
Pittsburgh, Pa., December 22.
Uncertainty and indicision has characterized
the coal market the past week. Quotations are
made subject to immediate change, and though
business could be had at a good profit, abnormal
conditions existing in various directions conflict
seriously with the operator taking advantage of
the rising market. The embargoes placed on
eastern shipping has caused a halt in that direc¬
tion, and at this date, coal that has gone forward
on speculation is very apt to be subject to demur¬
rage charges to an extent that may mean a loss.
The demand is still insistent for practically all
grades of coal, but in most cases producers are
unable to take on the business on account of the
acute car shortage — and even with a better car
supply — labor conditions would prevent shipping.
At the railroad offices little hope of a better¬
ment of transportation facilities is given, for the
immediate future, officials being unable to see any
solution of the car problem, and this, together
with the coming holiday season, which always
disturbs labor, adds to the troubles of the oper¬
ator, hence while prices are up and advancing, it
availeth nothing to the poor operator who can
neither get the help to mine his coal or the cars
to ship it if he could.
The eastern embargo may have temporarily
weakened the situation slightly, but when lifted,
will undoubtedly add renewed strength and in¬
creased demand.
Today, mine run coal is being quoted f. o. 1).
Pittsburgh at $1.50 to $1.60, with screened coals
$1.60 and $1.75, and slack has been quoted the
liast week at from $1.10 to $1.25, but with run of
mine at present figures, slack is practically not to
be had.
East of Pittsburgh, owing to the difference in
freights, Pennsylvania run of mine coal is selling
at from $1.65 to $1.75, and where cars can be had
for spot shipment, and freight is lower, $2.00 and
$2.25 are figures Pittsburgh has to compete with.
No. 8 (Ohio) coal quoted in Pittsburgh last week
at ninety-five cents has, owing to scarcity further
cast has entered this market, notwithstanding the
high freights, to a limited extent.
Unusually heavy rains, while considerable snow
lay over the water sheds of the three rivers, the
latter part of the past week, unexpectedly brought
the waters to a flood stage Sunday last, and
created much activity among river coal shippers,
and a «oal shipment that may amount to over
iwo million bushels is going out of the Pitts¬
burgh harbor on the rapidly disappearing rise.
'I'lie Diamond Coal & Coke Company taking
time by the forelock, sent its two towboats, the
Monitor, and the A. R. Budd to the lower pools,
ahead of the rise Saturday A. M., each with a
tow of seventeen barges, containing a total of
510,000 bushels of coal to be delivered to numer¬
ous points between Pittsburgh and Louisville, and
the Monongahela Consolidated Coal & Coke Com¬
pany, on Monday P. M. after the crest of the
flood had passed sent out the boats Valiant,
James Moren, W. K. Field and the Boaz, with
something over one and and a half million bush¬
els for the New Orleans market. This is the first
river shipping that has been possible from this
point for many weeks, the low water deflecting
all shipments possible to the railroads.
The annual convention of the Coal Mining In¬
dustry of America convenes at the Fort Pitt
Hotel, this city, today, and the meeting which
will extend over the 22nd and 23rd, will be of
much interest. Quite a number of interested
parties will be in attendance.
A delegation of Pittsburgh coal operators left
for Harrisburg yesterday to attend a meeting to
be further instructed regarding Pennsylvania’s
new workingmen’s compensation laws, as they
apply to mining, the situation apparently being
hard to understand through all its ramifications.
Furnace coke that a week ago jumped to $3.25
and $3.50, dropped back again for a day or two
to the three dollar mark, but quickly recovered
and is quoted today at $3.50 spot with $4.00 in
sight. Little or no free coke is on hand, and the
next two weeks, owing to the usual holiday short¬
age, $4.00 coke or even $5.00 will, in all proba¬
bility, be .seen. Foundry holds firm at $3.25 to
$3.75, with everything tending upward.
Pittsburgh Personals.
B. F. Vincent, president of the Wonderland
Coal Company of Portsmouth, Ohio, was a caller
at Pittsburgh the past week. Mr. Vincent was
visiting the trade in this city.
E. F. Hartland has assumed the position of
general sales agent of the Commonwealth Fuel
Company. Mr. Hartland is well known to the
trade, having been active in the business in Pitts¬
burgh for many years past.
Omaha Trade.
Omaha, Neb., December 22. — {Special Corre¬
spondence.) — Last Thursday and for several days
after the ground was white with snow. The brief
cold period died on the first of the current week,
however, and though the wholesale trade ex¬
perienced a temporary stimulus, prevailing lovely
weather had made the market sag back about
where it was. From now on the market will be a
weather market unless the labor situation among
llie miners becomes such as to force a storage
against suspension in April.
Cold weather will bring high prices and a big
shortage in steam coal. Dealers have been hold¬
ing off and have such low stocks that a crisp
change to seasonable weather would force them
to get coal at almost any price.
Christmas and New Year’s have been antici-
l)ated by a slight demand for coal. There is a
shortage of Cherokee slack and mill — the first in
a year. Missouri slack has also advanced sympa¬
thetically. There is no big demand at present for
Franklin county coals. Southern Kansas coal is
the tightest it has been this winter and this con¬
dition is explained somewhat in a letter, from
that field, exhibited by a local dealer. The mis¬
sive states that the unprecedented demand for
zinc and lead and the consequent usage of mine
run has called forth a “fierce” demand for coal at
nearby lead and zinc mines. “It is a common
thing now to see fifty or sixty teams at the nearby
little town of Qupaw, Okla., hauling coal to the
zinc mines where they are unloading fifteen or
twenty cars every day! Formerly,” the letter
concludes, “two or three cars were unloaded dur¬
ing a month.” Seventy-five per cent of the steam
coal used in Omaha comes from Kansas.
The steam trade has picked up very noticeably
although the domestic trade is slow and probably
will be until after New Year’s day. Anthracite
is slow. All rail coal is coming forward “in a
liesitating fashion,” the principal delay appar¬
ently being at Chicago; three weeks to a month
seems to be the time required to get a shipment
through. In contrast to this is the promptness
with which dock coal is shipped. Splints are sell¬
ing at $3.30 at. dock box cars, and Hocking is
going at the .same price. The main demand, with
dealers, is<i-on splint ; Hocking coal, at present, is
not much in demand.
Very little coal seems to be shipped on consign¬
ment to junction points. There is very little de¬
mand for fuel for domestic purposes, probably
because of the Christmas passion for buying gifts
of sentiment and things other than coal. There
is not much demurrage coal either, and cold
weather will create a very active demand, as has
lieen suggested heretofore in this letter.
^ The Cudahy Packing Company and Swift &
Company both bought their coal on the open market
last year, but were evidently alarmed at condi¬
tions, for they have just closed contracts for their
requirements in Cherokee slack until July 31. It
is doubtful if the Morris Packing Company has
yet closed its contract.
The Nicholas Senn Hospital, one of the most
modern local institutions of its kind, has just
taken out its oil burning furnace equipment and
has reverted to the use of coal. There is either
something wrong with the burner or the big
shortage in oil with consequent boosting of prices
on this commodity is frightening its users, for the
Coal Hill Coal Company reports four more
patrons as having “returned to the old coal field.”
Some local quotations are as follows :
('herokee nut .
Steam . n.;;
Nut . .
^ Iowa and Missouri Coals—
Xut mixture . .
Mine run .
Walnut lilock lump .
Icwa nut .
Franklin County lump . 1.75
Hest grades nut and egg (each) . 1.75
^Jther grades Franklin County . I.ri0@2.6r)
Montgomery lump and egg (each) . \.2r>
Rock Springs, Wyoming Coals —
l.ump and egg (each) .
.Nut .
Ilanna Ininp ami egg (each) .
Detroit Trade.
Detroit, Mich. December 23. — {Special Corres¬
pondence). — Re.gularity of buying continues a
prominent feature of the steam coal trade in the
Detroit market. While the quantity of stock that
IS being handled is regarded by some of the ship¬
pers as falling short of the tonnage, which they
believe should be sold, the business is being main¬
tained on a comparatively steady basis.
With manufactviring plants and various indus¬
tries operating with a large degree of activity,
shippers believe more coal should be bought for
current consumption and direct attention also to the
indifference of the consumers in the matter of
accumulating a supply ahead of day-to-day needs
to serve as a reserve in case transportation of
stock should be curtailed by increasing car short-
ii.ge or because of freight congestion.
Some difficulties already have been experienced
in obtaining prompt delivery of shipments, aside
from the complications that attended the recent
embargo on Grand Lrunk lines. Any sudden
check in supply, such as might result from heavy
snowfall or extremely cold weather, might, the
.shippers say, catch some of the manufacturing
plants in such condition as to necessitate total
or partial suspension of operations.
I he buying in the steam coal trade is most ac¬
tive in the small sizes. Not much difficulty is
experienced, however, in selling any good steam
coal.
Although temperatures during the week have
been only moderately cold, the domestic trade
seems to be maintainin.g the gains made earlier in
the month. Consumers evince more willingness
to invest in fuel supply than was the case a month
ago and renewal orders from retail yards are tak¬
ing more prominence in the business coming to the
shippers.
Consignment coal is still much in evidence, the
shiprnents including most of the Ohio and West
Virginia coals. With the market in its present
condition, the stock is finding comparatively ready
sale. Very little of it is left long enough on the
tracks to arrive at forced sale.
The lar.ger sizes of anthracite arc showing less
strength than chestnut. The supply of the lat¬
ter IS seemingly less plentiful and shippers who
are able to obtain it, have been making sales at
an adyance of about 25 cents a ton over the regu¬
lar price. Consideralile complaint is heard about
lack of promptness in movement of anthracite
from the mines.
While shippers of iron ore are making stren¬
uous efforts to assure adequate supply of vessel
capacity for next season by buying and chartering
lake steamers, some of the coal shippers also
have been endeavoring to close contracts, in most
instances, with only partial success, owing to the
fact that vessel owners are unwilling to enter into
a.greements which would prevent the sale of their
boats.
Prices in the local market on mine shipment
orders are as follows :
West Virginia Splint —
Fourjnch lump . 1.50@1.75 2.90@3.15
Two-mch lump . 1.25@1.40 2.65@2.80
Ihree-quarter . 1.05@1.10 2.45@2.60
Mme-run . .90 2.30
Nut, pea and slack . 75@ .90 3.15@3.40
Smokeless —
. 1.75 3.35
. Open Open
Mine run . 1.40 3,00
Kentucky Splint —
Jmmp . 1.75@2.00 3.15@3.40
. 1.25@1.40 2.65@2.80
Nut, pea and slack . 75@ .90 2.15@2.30
Fairmont —
Tiiree-quarter steam lump....
1.10
2.50
Mine run .
2.35@2.40
Slack .
Open
Hocking Valley —
Shaker three-inch lump .
1.60
2.75
Shaker egg and nut .
1.25
2.40
Domestic lump .
1.50
2.65
Three-quarter lump .
1.35
2.50
Mine run .
2.15@2.25
Nut, pea and slack .
Open
Pittsburgh No. 8 —
Three-quarter lump .
1.05
3.20
Mine run .
2.10
Slack .
Open
Jackson Hill —
Domestic lump .
2.50
3.65
Cambridge —
Three-quarter lump .
1.20
2.^5
Mine run .
1.10
2.25
Pomeroy—
Iwo and three-inch lump .
1.60
2.75
F-gg .
1.35
2.50
Slack .
.. .7r>0} .00
1.00(3)2.05
536
THE BLACK DIAMOND
[December 25
Cincinnati Trade.
The Weather Is None Too Favorable to
Domestic Orders, but Steam Prices
Rule Quite Strong.
Cincinnati, Ohio, December 23. — (St’ccial
Correspondence.) — Being a weather proposi¬
tion, the coal market is now fairly firm in all
domestic grades, prices having settled at about
a general level slightly above the prices of a
few weeks ago. Some of them went higher but
had to recede.
The splint domestic sizes are in best shape
at present, being unhampered by previous or¬
ders taken at higher figures. A peculiar .sit¬
uation arises in the conditions in \V est \ ir-
ginia fields and in Pennsylvania fields. The
demand in the east is brisk and is causing
profitable prices and business in the eastern
fields. Run of mine of the same grade as the
average Kentucky and West Virginia products,
is commanding $2 in Pennsylvania fields while
it is selling slowly in West Virginia and Ken¬
tucky at .$1.10 to $1.25, for the best. Operators
threaten that if the rate is established at fifteen
cents a ton in the central and northwestern
part of their territory, they will take the war
into Africa by demanding an equalization of
eastern rates. This is causing three or four
of the railroads some uneasiness.
While this is the dull season for smokeless
coal, it was expected this year that the period
would be pushed farther into the season and
infringe on the New Year. It is believed this
forecast was true a month ago but it failed to
materialize because of the heavy surplus left
after the lake season closed. Large buyers,
who had been waiting for some such situation
to develop, captured the surplus and are now
offering it in the market, in competition with
the regular smokeless movement, at lower
])rices. It is likely the operators will close
the mines for ten days in the Holidays, and
if they do it will be sweet revenge on the
jobbers who have been helping on the slump.
Several of the big Pocahontas shippers are
selling at $1.85 and $2, still, for lump in flats
and hoppers respectively, but the price of nut
has gradually worked its way back to normal
in most cases.
The redeeming feature of the market is the
run of mine, and nut and slack situation. Any¬
thing that looks like nut and slack is eagerly
taken and the best commands a premium over
anything sold for years at this season of the
year. For four weeks not a car of nut and
slack has been seen lingering about in the
mine yards. The man, with anything like
slack, who does not get seventy-five cents to
eighty-five cents, now, is a poor salesman, and
any one with standard slack can sell it at
ninety cents to $1 per ton. This is true of
every field in this territory, and every variety
and grade. Smokeless nut and slack to the
limit of possible production seems to have
been contracted and now moves as freely as
the car supply will permit, from mine to mill,
to coke oven and gas retort.
River coal is coming into more prominence
now, especially in the nut and slack. Both
Kanawha and Pittsburgh coals are now com¬
ing into harbor here and large tonnages are
floating down the river. About a million and
a half bushels floated down the river on the
crest of the rise, this week. Little is being
said about the car supply now, there having
been but little betterment of the situation
apparent ease having been secured only by less
frantic demand for domestic coal.
Italians are still leaving the territory for
the European bear pit, and other nationalities
are leaving more slowly, the Greeks, however,
holding themselves in readiness to go, also,
when called to the colors. Other skilled lab¬
orers are drifting away into iron furnaces and
rolling mill work, where labor is at a premium.
This is causing the mine labor supply to shrink,
but only those having large contract tonnage
to deliver are feeling the labor shortage. The
car supply, the embargoes at tide-water, the
closing of the lake trade and the slow demand
for everything but steam sizes, are all combin¬
ing to preserve the equilibrium of the situ¬
ation.
Duluth Trade.
Duluth, Minn., December 23. — (Special Cor¬
respondence.) — With the arrival of the steamer
Griffin last night with 3,000 tons of hard coal.
the navigation season between Lake Superior
and the other lakes closed for the season of
1915. The Griffin left Lake Erie about ten
days ago, but, owing to the fact that most
of the aids to navigation have been removed,
she being the only boat on her way, her master
had to come along carefully. In a few days
Maj. E. D. Peek, the United States govern¬
ment engineer in charge of this district, will
issue his annual report on coal. In fact, it is
all prepared with the exception of recording
the Griffin’s cargo; but the figures will not
be given out until all will have been com¬
piled. However, it is well known that the re¬
ceipts of soft coal are considerably less than
those of the previous season while the re¬
ceipts of hard coal are a good deal more. Spe¬
cial attention has been given to anthracite
in anticipation of a strike.
President Bergingham of the D. L. & W. Coal
Company, of New York, was here a few days
ago, in company with President E. N. Saund¬
ers, Jr., of the North Western Fuel Company,
of St. Paul, looking over the coal docks of
the latter company. It is declared that there
was no particular significance attached to the
visit. Mr. Saunders did not discuss the re¬
ported project of his company to build a
large coal dock on its Rice’s Point property,
in this city, but the general belief is that this
improvement will be made. While there is
plenty of coal dock capacity at the Head of the
Lakes for the next eight or ten years, and
much more than is actually needed right now,
the North Western’s property is not very ad¬
vantageously located, and it needs a new dock
for iron, range and western city service. The
proposed dock would give this.
Steam
Harbor. Delivered.
Egg . $8.10 $8.10
Stove . 8.10 8.10
Nut . 8.35 8.35
Stove and nut mixed . 8.25 8.25
Nut and pea mixed . 7.00 7.00
Pea . 0.80 0.80
Youghiogheney lump . 3.55 4.75
Voughiogheney stove . ... 4.75
Youghiogheney run of pile . 3.35 4.45
Youghiogheney screenings . 2.05 3.50
Kentucky lump . 3.90 5.00
Kentucky mine run . 3.50 4.45
Kentucky stove . 4.05 5.30
Kentucky screenings . 2.90 3.50
Hocking Valley lump or stove . 3.55 4.75
Hocking Valley run of pile . 3.30 4.35
Hocking Valley screenings . 2.50 3.25
Splint domestic . 3.80 4.75
Splint screenings . 2.80 3.50
Pocahontas nut. egg or lump . ... 0.75
Pocahontas mine run . ... 4.50
Pocahontas screenings . 3.15 3.95
Indianapolis Trade.
Indianapolis, Ind., December 23. — (Special
Correspondence.) — The coal trade in Indiana
continues to improve. All of the mines are
busy and the dealers here have all the orders
they can fill. Coal is scarce. Many operators
are forced to go into the open market now to
fill their orders. Mine-run is strong. Domes¬
tic is stronger than it was a week ago and
some is selling as high as $2 a ton at the
mines. There is a good demand for all steam
grades. One favorable situation of the mar¬
ket is that there has been no weather to tie
up the railroads and make difficult the han¬
dling of cars. The railroads are keeping right
after the operators and shippers in order that
cars may be loaded and unloaded promptly.
However if there isn’t a car shortage before
long it will be surprising. The retailers here
are doing a fine business in all grades of coal.
There is a strong demand for smokeless do¬
mestic grades which are rather hard to get at
this time. The feature of the situation that is
most encouraging is the growing demand for
steam grades which indicates a healthy condi¬
tion of the market. Prosperity seems to have
hit all of the Indiana cities. The holiday
shopping here has broken all records. People
are buying heavily and merchants say that
they are paying their bills promptly. Postal
receipts are increasing over the correspond¬
ing periods in 1914. The movement of freight
is much heavier. These items are mentioned as
being incidental to the increased demand for
steam coal. The following nrices are being
quoted by the wholesalers:
F. O. B. F. O. B.
Indiana — Mines. Indianapolis.
Mine run. No. 4 . $1.10@1.20 $1.60@1.60
Mine run, Nos. 5 and 6 . 1.05@1.15 1.55@1.65
Nut . 1.20@1.30 1.70@1.80
Egg . 1.3n@1.40 1.80@1.90
I'/rinch steam lump . 1.25@1.35 1.76@1.8.5
No. 4 screenings . 80@ .90 1.30@1.40
Nos. 5 and 6 screenings . 65@ .75 1.16(ffil.2.5
2t4-inch domestic. No. 4 . 1.50@1.65 2.00(ffi2.05
4-inch domestic. Nos. 4 and 6.... 1.65@1.70 2.15@2.20
Brazil block domestic . 2.25@2.50 2.75@2.50
No. 1 washed coal . 1.75
No. 2 washed coal.... . 1.65
Southern Indiana Field —
Mine run . 1.06@1.10
Domestic lump . 1.40@1.50
2.26
2.15
T-win Cities Trade.
Minneapolis and St. Paul, December 22. —
(Special Correspondence.) — A white Christmas
will prevail in the northwest this year, which al¬
ways means an increased consumption of coal of
all kinds. A year ago the weather had been
colder than thus far the present month, but there
was an absence of snow, which resulted in the
farmers burning corn cobs and other offal to be
found around a farm. When the landscape is
covered with snow this is an impossibility.
Hence, a white Christmas means an increased call
for fuel of all kinds.
Various factors in the northwestern trade, re¬
tail as well as wholesale, in discussing the feat¬
ures of the trade this year called attention to one
important matter. Since the early part of Sep¬
tember demand has been almost continuous, but
there has been no spurt at any time. From a
retail standpoint this is a decided advantage. It
has done away with the necessity of increasing
the number of teams in the delivery service, en¬
abling coal merchants to use their regular force.
In the wholesale end of the trade it has had al¬
most the same effect, keeping the loading crews
on the docks busy but not making it necessary to
increase the number of men employed. In the
Illinois and Indiana trade the demand has been
steady. It is true that it has not always been uni¬
form, but the mining companies have been en¬
abled to depend upon about so much business
each week.
Twin City dealers are confronting a serious
problem in getting coal cars switched to their
yards. When a car arrives over a foreign line
it takes all the way from a week to two weeks to
move it to the unloading track. The local switch¬
ing crews of the various railroads have more
business than they can handle on account of the
continued heavy movement of grain, and if there
should be a heavy fall of snow at any time, there
is a strong probability that some Coal yards
would be very short of some grades of fuel be¬
fore the switching service would supply them
with additional tonnage. There is no reason to
look for any immediate improvement. Coal is
moving from the docks in good time, but the
Illinois lines reaching southern Illinois seem to
be badly congested and the movement over their
rails is slow, taking from a week to ten days to
get the coal forwarded to common junction
points within the confines of the state. This is
making it necessary to trace a good many cars.
Dealers, however, have fair stocks of coal on
hand and as yet there have been no serious con¬
sequences of these conditions. After «the coal
leaves the originating lines, the movement is fair.
Collections are in good shape.
Current market prices at wholesale on leading
grades of coal sold in the Twin Cities are as fol¬
lows :
ANTHRACITE.
F. 0. B.
Duluth
and_
Superior
F. O. B.
Minneapolis
and
St. Paul
$7.80
8.05
8.06
8.30
6.70
Nut .
7.10
Pea . .
Buckwheat . .
5.20
BITUMINOUS.
Splint, screened lump and stove.$3.30@3.40
$4.26@4.36
Splint, dock run .
3.10
4.06
Hocking, screened lump and stove
3.30@3.40
4.26@4.36
Hocking, dock run .
3.00
3.96
Youghiogheny, gas, lump and stove
3.30@3.40
4.26(i4.36
Youghioghenv, gas, dock run .
3.10
4.06
Pittsburgh vein, lump .
3.30@3.40
4.26®4.36
Pittsburgh vein, dock run .
3.00
3.96
Pocahontas, screened lump or egg
4.75
6.71
Pocahontas, screened lump and
egg mixed .
4.50
6.46
Pocahontas, mine run .
3.25
4.21
Cannel, lump .
5.25
6.21
Smithing, bulk .
4.25
6.21
Smithing, in 100 lb. sacks .
6.00
6.96
Briquets, anthracite .
5.00
5.96
Briquets, smokeless .
5.00
5.96
In the Illinois trade the
range of
prices on
southern Illinois product on the various sizes is
as follows:
Franklin County —
Lump, egg and No. 1 nut . $1.65@1.75
No. 2 nut . 1.50@1.60
2-inch screenings . 85@ .90
Run of mine . . . . . •• 1.15@1.25
Williamson and Saline Counties —
Lump, egg and No. 1 nut . 1.65@1.75
No. 2 nut . 1.40@1.50
2-inch screenings . 8.1 @ .90
Run of mine . 1.15(®1.25
$3.95@4.05
3.66@3.76
3.01@3.06
8.45@3.55
3.95@4.05
8.56@3.66
3.01@3.0fi
3.45(®3.55
No. 26]
THE BLACK DIAMOND
537
Cleveland Market
Cli;vei..\ni), Ohio,; December 22. — (Special Cor¬
respondence). — The local market presents rather a
curious condition this week. Although there has
been no increase in the demand for steam coals
and the supply has been, at least, normal, prices
l ave remained stiff and in some instances have
shewn a material advance. Apparently neither
the producers nor wholesale dealers are particu¬
larly anxious to move their holdings. This con¬
dition has probably been brought about by the
heavy shipments east, which have been counted
upon to hold the prices up, even in the face of a
demand that is not particularly encouraging.
Reports from the east are to the effect that the
railroad yards and sidings are now full of coal and
some of the roads have declared an embargo on
further shipments for the present. It is believed
by some that this will react on the market here
and there will be a drop in prices, instead of a
further advance as was expected a week ago.
This will depend upon the real need of coal in the
east, however, and if the supply is absorbed within
a reasonable time and further shipments become
necessary, a stiff market here will result.
A sufficient amount of tonnage for next season
has been covered to fix the old rate of 30 cents to
the head of the lakes. Vessel men expected that
the Lake Michigan rate would be at least five cents
hi.gher than last season, but at this time it has not
been clearly established as to just what it will be.
The shippers, however, do not expect any change
from last season’s rate. It is said that contracts
have been made recently for several big blocks of
coal, covering a number of years, at the going
rates, whatever they may be. Shippers are en¬
deavoring to make themselves safe against the big
demands that sometimes arise in the grain and ore
trades.
Quite a number of boats will be loaded with
storage coal if the weather remains favorable and
it is believed that, before the openin.g of naviga¬
tion in the spring, there will be quite a large
amount afloat.
The demand for many grades of domestic coal
has been very weak during the past week, while
the supply has been above normal. The rather
soft weather is blamed for this condition.
The anthracite situation is quite dubious at this
time. Egg and stove sizes are perhaps normal,
but chestnut is moving very slowly because of
the congestion at East Buffalo. The heavy storms
in the east have also made the situation worse.
Many dealers have had no chestnut coal in stock
for a week, it is said, and it is possible that they
will have to wait some time for it until the Buf¬
falo congestion is cleared up somewhat.
Some of the independent collieries are said to
be more than a month behind in their deliveries.
.•\s a result they have been able to secure a prem¬
ium of from 25 to 50 cents above the circular
prices for quite a little of the coal they have been
able to get through.
Both run of mine and slack from the Eastern
Ohio field showed an advance of from five to ten
cents a ton the past week. Doubt was expressed
as to whether any amount of run of mine could be
purchased at $1.15 and no particular anxiety was
expressed to sell slack at $1.10. Quotations were
as follows :
F. O. B. F. O. B.
No. 8 District — Mines. Cleveland.
Three-quarters . $1.20 $2.10
Kun of mine . 1.10@1.15 2.00@2.or)
Slack . 1.00@1.10 1.90@2.00
While Coshocton coal has not been marked
above last week’s figures, it is said that there was
little, if any, free coal in the market the past
week. The demand has been good and there
has been no trouble to move all that was producetl :
F. O. B. F. O. B.
Coshocton — Mines. Cleveland.
l.ump, 4-inch screened . $1.70@1.75 $2.40@2.4.'j
IH inch . 1.60@1.6.5 2.30@2.35
Kgg and nut . l.Ooigil.lO 1.75@1.80
Pittsburgh slack was marked up from $1 to
$1.15, but there was none in the market, even at
the latter figure. The east has taken all avail¬
able slack for several days past :
F. O. B. F. O. B.
Pittsburgh— Mines. Cleveland.
Slack . $1.15 $2.15
Massillon producers are behind in the delivery
of the larger sizes and they have not been able
to take care of the flood of orders for slack at
all:
F. O. B. F. O. B.
Massillon — Mines. Cleveland.
r.ump . $2.50 $3.20
Nut _ 2.50 8.20
Slack . 1.10@1.15 l.S0@1.85
Smokeless coals have moved very slowly the
past week, while at the same time there has been
an over-abundance on track here. Because of the
demand for steam coal in the east, operators have
not been able to move the usual amount of smoke¬
less coal in that direction :
F. O. B. F. O. B.
Smokeless — - Mines. Cleveland.
Lump . $1.80 $3.25
Egg . 1.80 3.25
Run of mine . 1.25 2.70
Prices of Cambridge coal, run of mine and
slack, have moved up a notch in unison with other
coals of similar quality. Slack was in good de¬
mand up to $1.10 per ton. Quotations are as
follows :
F. O. B. F. O. B.
Cambridge — Mines. Cleveland.
Three-quarters . $1.20 $2.10
Run of mine . 1.10@1.15 2.00@2.05
Slack . 1.00@1.10 1.90@2.00
There has been no change in Kentucky black
coal for some time and prices quoted are the same
as last week :
F. O. B. F. O. B.
Kentucky — Mines. Cleveland.
4-inch block . $1.90@2.00 $3.15@S.25
It is immaterial as to what prices are placed on
Youghiogheny coals, as they were entirely out of
the market all the past week :
F. O. B. F. O. B.
Youghiogheny — Mines. Cleveland.
154-inch . $1.40@1.60 $3.40@2.60
Three-quarters . 1.80 2.30
Run of mine . 1.20 2.20
Slack . 1.15 2.15
No change has been noted in the prices of
Bergholtz coal, but it remains firm at the figures
quoted last week :
F. O. B. F. O. B.
Bergholtz — Mines. Cleveland.
6-inch lump . $1.70 $2.40
154-inch . 1.46 2.15
Three-quartrrs . 1.86 2.06
Egg ■ . 1.26 1.95
Run of mine . 1.20 1.90
Slack . 1.10@1.15 1.80@1.86
Goshen slacks have held their own at last week’s
figures. Because of the light demand for do¬
mestic coals, the figures on the larger sizes have
not changed. Quotations follow :
F. O. B.
Goshen-Wainwright Mines — Mines.
Three-quarter domestic . $1.40
3-inch lump . 1.80
Lump . 1.66
Slack . 1.16
F. O. B.
Goshen — Mines.
Three-quarters . $1.30
I 54 -inch . 1.40
Run of mine . 1.16
Slack . 1.16
F. O. B.
Cleveland.
$2.10
2.60
2.85
1.86
F. O. B.
Cleveland.
$2.00
2.10
1.86
1.86
Birmingham Trade.
Birmingham, Ala., December 23, — (Special
Correspondence.) — There is no question that of
the coal trade being better than it was this time
last year. While considerable improvement has
become effective, the coal mart has not recovered
as sucessfully from the depression in 1914 and
part of 1915 as in other lines of business.
It is true that both steam and domestic coal
have improved considerably, but neither has come
up to the expectations of the operators. Coking
is the only grade of coal that has in any way ful¬
filled the anticipations of the coal people. This
realization comes from the large demand for iron
sales which are very extensive from this district.
This gratifying condition of the iron trade will still
cause a heavy tonnage of coking coal to be mined
for some months to come.
The outlook for domestic and steam coal is
not so propitious, but operators of steam and
domestic coal mines are hopeful of better con¬
ditions obtaining for this trade during the coming
months. Chief Mine Inspector C. H. Nesbitt,
adheres to his prediction that coal production in
•Alabama for the year 1915, will show an increase
over 1914, and that the figures of the year before
will not be so very much in the lead of 1915 pro¬
duction.
Effort to build up a large balance of business
down the Warrior River is being made with four
large companies and several smaller operators en-
terin.g this field of coal development. The pros¬
pects for fulfillment of a fine business in this
direction seems to be good.
Domestic trade the past week has been fairly
good with the retail men, but as most of them are
well stocked very little buying has come from
them to the operators.
Steam coal is only fair. The railroads are tak¬
ing the largest tonnage, but this is not enough to
satisfy the operators who say that business is not
so good as they wish it to be.
Coking coal is being mined in large quantities
and conditions are satisfactory.
'I'he Tennessee coal mines at Blue Creek are
turning out more coal at the present time than
they have for the past two years. The mines at
Ad.ger and Sumpter are working a full force
of men, mining coal to be shipped to the fur¬
naces and by-product |)lant of the company. At
Johns, the old beehive coke ovens, which were
abandoned five years ago, have again been placed
in working condition and are turniag out a high
grade of coke.
The 300 ovens require a large force of men to
operate and the ovens are making 72-hour coke,
considered better than the by-product coke for the
making of pig-iron. The conditions in the Blue
Creek district are better generally than they have
been in years, and prospects’ are bright for steady
work right through the winter months, or as lon.g
as the furnaces are operating and the price of pig
iron as it is at present.
There is no end to the demand for coke and
.good prices obtain. At the same time, there is a
full production noted. It is figured that the
production of coke this year will exceed the most
optimistic figures. Announcements during the
week foretell of possibilities of two big batteries
of by-product coke ovens being constructed in
this State, one by the Sloss-Shefifield Steel and
Iron Company and the other by the Gulf States
Steel Company.
President J. C. Maben, of the Sloss-Sheffield
Steel and Iron Company, has been in Birmingham
and the Birmingham district this past week, and
while he still doubts the success of the by-product
coke ovens, it is known that he is giving serious
thought to a recommendation to the directors of
his company for some development aloag this line.
The Gulf States Steel Company has had an offer
of a site for a big coke plant in the vicinity of
Gadsden, and the board of directors of the com¬
pany had a meeting the past week in New York,
attended by James Bowron, President.
There is more coke being manufactured with
even the old style beehive ovens than for two or
three years past, while the four by-product coke
oven plants are doing exceedingly well in the way
of output. Foundries and machine shops are
taking more and more to the use of the by-product
coke, while other interests are willingly accepting
the product.
The following prices prevail :
F. O. B. .F-P. B.
Bibb County Domestic — Mines. Birmingham.
Red ash Cahaba lump . $3.30 $3.30
Red ash Cahaba lump . 2.76 1.10
Red ash s^eam size . 1.20@1.85 Frt. rate 30c
JeflFerson County —
Fancy steam Pratt . 1.75 2.00
Run of mine Pratt . 1.20@1.26 1.45@1.60
Mary Lee lump . 1.40@1.00 1.80@L90
Black Creek —
Fancy steam lump . 1.76 2.05
Washed nut . 1.75 2.00
Washed steam . 1.36@1.60 Frt. rate 80c
Mine run . 1.35@1.40 Frt. rate 30c
Jefferson Steam Coal —
Mine run . 1.15@1.25 Frt. rate 30c
Walker County Domestic Coal —
Carbon Hill lump . 1.75 2.15
Carbon Hill egg . 1.65 2.06
Horse Creek mine run . 1.00@1.20 Frt. rate 40c
Genuine Corona —
Lump . 2.00 2.40
Egg . 1.90 2.35
Steam sizes . . L25@1.35 Frt. rate 40c
Shelby County Domestic Coal —
Cahaba fancy lump . 3.00 I SO
Cahaba No. 2 lump . _ 2.75 8.06
Montevallo domestic prices ranging from $3.00 to $3.25.
Blacksmith coal, washed and screened, per tan, $2.00 t*
$2.25 at mines, with different rates to various points.
Denver Trade.
Denver, December 23. — (Special Correspond¬
ence.) — Weather conditions for several days past
are almost all that could be desired from the
standpoint of the coal dealer. The entire district
is covered with a two-inch snow blanket which
has stuck for nearly a week, and temperatures
have been hugging the freezing point during the
day and near zero at night. As a result, pro¬
duction has increased and the distribution has
been marked with greater activity than at any
time since the beginning of the season.
The lignite output has been above maximum
since the beginning of the storm, and production
in every district of the state shows decided gains
over last week. Only one or two of the sugar
factories have closed their season’s grind, the
others not being able to finish until well along
in February.
Trinidad and Wal.senburg operators report a
heavy increase in country orders, and there is a
•Strong demand for Routt county grades from
Nebraska. The Canon City district shows a gain
over last week’s outimt of nearly twenty-five per
cent.
The effect of the cold snap has not been lost
on the slack market, every indication of a surplus
being completely obliterated and the .supply of all
grades being well taken. Prices are very firm.
The following prices are ruling for lignite coal,
f. o. b. mines: For Denver delivery, lump, $2.35
to $2.05; mine run, $1.50 to $1.05; slack, $1.05 to
$1.25. For points outside of Denver, lump, $2..)0 ;
mine run, $1.55 to $1.05; slack, $1.05.
538
THE BLACK DIAMOND
[December 25
New York Trade.
Anthracite Production and Distribution
Greatly Retarded — Bituminous Ad¬
vances Stayed by Embargoes.
Office of Thk Black Diamond,
New York, December 33.
'i'lie aiitliracite trade is marked this week
l)y light production and greatly interrupted
distribution. Roads have placed embargoes in
most every direction, and particularly against
coal moving by all-rail into New England.
( )n Tuesday about the only open way to shi|)
straight car load lots into New England was
via Jersey City and the floats around New
^'ork city. This is a slow methocl, especially
now that the Jersey terminals are congested
with miscellaneous freight.
Also, movement by water to New Ifngland
from both Philadelidiia and New York is seri¬
ously clelayed. Rad weather has kept back all
kinds of water transportation and vessel trans¬
portation is very scarce.
As cars are not being returned to the mines,
but few of them are working as well as three
full days a week. Last week it is doubtful
if the regions as a whole got out more than
two full days’ production. And this week,
conditions as regards car supply are even
worse. ( )ne big company-found its supidy of
cars on Monday only sufficient to enable it to
mine but one-iifth of a normal day’s tonnage.
This interruption in car supply will mean that
production this month will fall very far behind
that of December of last year. Thus the short¬
age of anthracite for the full year will run
easily .f, (MW, 000 tons short of the 1914 pro¬
duction.
Already individuals who are in position to
accept spot orders, are securing premiums of
about twenty-five cents a ton on domestic-
coal for line shipments. Tide prices so far,
have been held very close to circular.
The steam sizes are getting very active. The
high bituminous prices are in a measure re¬
sponsible. Though, there is also the fact that
short time mining makes for a smaller output
at a time when consumption is very heavy.
Some sales of No. 1 buckwheat were made
at $2 per ton at the mines for rail delivery.
.\t New York harbor ports, both rice and bar¬
ley are very short, and sell readily at twenty-
five cents over the circular for fair grades.
Buckwheat is also selling at five to ten cents
over the circular. The companies arc prac¬
tically out of the market on steam coals, con¬
tract requirements taking their entire output.
I’ea coal is also sharing in the better demand.
New York anthracite prices are;
Upper Lower
Ports. Ports.
Itrokcn . $5.10 $5.00
I'-gg . 5.35 5.25
•Stove . 5.35 5.25
Chestnut . 5.60 5.50
Pea . 3.55 3.45
Special grades of red ash and other high-
grade coals at the lower ports sell at twenty-
live to fifty cents per ton over above figures.
•Spot prices in individual coals at lower ports
are about as follows:
fc-gg . $5.05 and up
Stove . 5.20 and up
Nut . 5.20 and up
Pea . 3.25 and up
t’uek . 2.45 and up
nice . 2.25 and up
Harley . 1.05 and up
The Bituminous Situation.
The bituminous market in the east is still
Itanicky. Brices have not further advanced this
week, but few sales being reported above $2
per ton at the mines in Pennsylvania, but this
is ascribed to the fact that early this week,
most of the originating railroads had put on
embargoes that shut off shipments in most
every direction. This meant that the buyer
of coal at the mines was taking a chance as
to delivery, and as the shipper could make no
guarantees, there was no necessity therefore
to pay a handsome price.
To the embargoes, therefore, is to be cred¬
ited the easing off of prices by many operators,
numerous quotations appearing on Tuesday
ranging from $2.40 to $2.7.5 per ton at the
mines, whereas the latter part of last week,
every operator had $.3 per ton in mind as the
right price to ask.
New England consumers are unquestionably
very short of coal. They have not been able
to get any relief from the southern coals, as
water transportation is lacking, and also
weather conditions coastwise have been so
bad the past several weeks that much of the
coal moving in time chartered bottoms has
been delayed in delivery. Coal at $7 per ton
has been reported at Boston, f. o. b. cars at
Mystic. Water rates from Hampton Roads
have gone as high as $3 per ton, with few
boats offering at thi.s price. Erom Baltimore
aiid Philadelphia, it is practically impossible to
lind boats at any price, -wliile about the same
state of affairs exists at New York for boats
for .Sound and around' the cape points.
It was expected last week that the operators
in Pittsburgh region would come into the east¬
ern market, and take advantage of the fancy
prices being offered. A great deal of Pitts¬
burgh coal was offered in the east, to come
forward on the Pittsburgh rate, but the rail¬
roads have forestalled any material movement
of coal from that territory into the markets
that have heretofore been held by the Central
Pennsylvania coals. Either they have been
unable to supply operators with cars in which
to move coal, or their embargoes have operated
so as to keep shipments back. Up to this
time, but little coal from foreign regions have
come into the eastern markets, nor is it likely
that any tonnage of any moment will secure
an eastern outlet.
Pennsylvania operators are being hard
pressed to take care of contract requirements.
'Phey had found this very difficult even up to
the first of the month, before the railroad con¬
gestion became so serrous. The New Haven
system is .still suffering from the effects of
last week’s blizzard. The coal movement by
rail in New England may be said to have bqen
set back at least a week by this blizzard, and
the Pennsylvania railroad embargoes coming
on top of this, will mean perhaps another
week’s demoralization. When you add to this
the fact that New England consumers were
running with very low stocks all the fall, their
liosition at present can be easily appreciated.
At New York tidewater ports, deliveries
are very much delayed. Coal is arriving very
slowly, and many shippers are finding it very
hard to load boats with anything like prompt¬
ness. Thousands of loaded cars are in transit
between mines and tide, sidetracked along
nearly every mile of road intervening, and it
will be some weeks before conditions can be
righted. In the meantime, another snowstorm
may come along to break a transportation link
here and there, or miscellaneous freights may
continue to swamp the carriers.
Unfortunately, but few coal producers are in
position to take advantage of the present high
prices being quoted. Most of them have low'-
priced contracts, and with a shortage of labor
and a most erratic supply of cars, they are
doing nobly if they can get out even the rc-
(juirements of their contractors.
The Vessel Situation
Coastwise and sound vessel rates arc still
soaring. It is very hard to fix a line of quo¬
tations. From the Roads to Boston, $3 has
been paid and $3.25 asked. From Philadelphia
and Baltimore, rates are practically the same.
But few boats are to be obtained at any price.
From New York to Providence, $1.50 is the
rate, with $1.75 to $2 being asked to Boston.
Harbor rates have advanced to thirty and
forty cents per ton. Bad weather has held
up coastwise shipping, while boats are given
unusual detention in New York, especially at
Ihe loading ports due to the slow arrival of
coal. I
Off-shore rates are still very firm at the re-,
cent high record levels.
We quote the curreul rales of freight as
follows:
From Hampton Roads to Boston $2.75 to
$3.25 is about the range; to Portland and points
cast of Boston, the same. To Sound points.
$2.50 to $3. From Philadelphia to New Eng¬
land points, $2 to $3.
From New York to Sound points as fol¬
lows: Bridgeport, sixty-five cents; New Haven,
seventy-five cents to $1; Providence, $1.25 to
$1.50; New Bedford, $1 to $1,15. To Boston,
around cape, $1.75. Harbor rates, thirty to
forty cents.
Current quotations on bituminous coal in
spot lots arc:
F. O. B.
F. 0. B.
Somerset County —
Harbor.
Mines.
Best grades .
$2.75
Medium grades .
. 4.05
2.50
Ordinary .
2.20
Cambria County —
T^est Miller vein .
2.95
Medium grades .
. 4.05
2.50
Cheaper grades .
. 3.80
2.25
Clearfield County
Best grades .
2.50
Ordinary grades .
2.25
Indiana County —
Best grades . 4.00 2.45
Medium grades . 3.80 2.25
Maryland —
Georges Creek big vein . 4.50 3.30
West Virginia —
Ordinary grades . 3.85 2.30
Best gas, 44-inch lump . 3.75 2.20
Best grade, run of mine . 3.70 2.15
Gas slack . 3.05 1,50
New York Trade Briefs.
G. U. Kierstead, treasurer of the City Coal
Co. of Hartford, Conn., was in New York on
Tttesday.
G. W. Hoban of the sales force of 'Weston
Dodson & Co., Inc., spent his Christmas at his
home in Clairmont, Vt
C. E. Randolph, sales manager for Thorne,
Neale & Co., No. 17 Battery place, took a trip
through New England this week.
!•'. A. Taylor, Philadelphia manager for the
Maryland Coal & Coke Company, was at the New
York office of his company on Monday.
C. F. Huber, president of the Lehigh & Wilkes-
Barre Coal Company of Wilkes-Barre, Pa., was
at the New York offices on Tuesday.
G. R. Gabelle, bituminous manager for Thorne,
Neale & Co., stationed in Philadelphia, visited the
New York office of his company on Tuesday.
Carl F. Siebeckcr, formerly of the Bethlehem
offices of Weston Dodson & Co., Inc., has been
assigned to the New York office, where he will
work in the sales department.
F. C. Kraft, recently with the New York office
of Weston Dodson & Co,, Inc., has been trans¬
ferred to the Bethlehem office of this company
and will be connected with the sales department.
F. H. Ray, formerly identified with the Baker-
Whiteley Coal Company, of Baltimore, has asso¬
ciated himself with B. Nicoll & Co. as special
agent. While Mr. Ray is making his head¬
quarters at the Baltimore office of B. Nicoll &
Co., his activities will not be confined to that
territory alone.
The Manamar, a 7,500-tou steamship con¬
structed for the Munson Line by the Maryland
Steel Company, arrived in New York on Mon¬
day. The vessel is to be placed in the Cuban
trade and will start on her maiden voyage Decem¬
ber 31. She has accommodations for fifty saloon
and thirty second-cabin passengers.
J. J. Hobbs, the well known coal exporter of
No. 1 Broadway, has chartered eight schooners
recently to take coal to Spain, Argentine and
Brazil. Recently one of the schooners chartered
by Mr. Hobbs, the “Edward J. Lawrence,” made
a record trip of thirty days to Barcelona, Spain,
with a cargo of 5,000 tons of Pocahontas. Sun¬
day two schooners chartered by Mr. Hobbs, and
loaded with coal, sailed from Hampton Roads
for Rio. The first to arrive at destination will
receive a purse of $500.
R. Martens & Co., Inc., is the name of a new
corporation with offices at No. 24 State street.
New York. This corporation is affiliated with
R. Martens & Co., Ltd., of London and Petro-
grad, with which is associated the firm of Hulton,
Thompson & Co., Ltd., of London. The Euro-
liean companies are large shippers and contractors
of coal for bunker and export purposes, and arc
also extensively engaged in general shipping. The
American branch will do a general shipping and
contracting business, and have recently acquired
a dock property on Staten T.sland to facilitate the
movement of their ships.
W. 11. Carpenter, of Dexter & Carpenter, Inc.,
of No. 12 Broadway, returned on last Friday
from a six months’ trip to Europe and South
America in the interests of his company. Mr.
Carpenter spent more than two months in South
America, coming directly from Buenos Aires to
New York on a Lamport & Holt steamer. Con¬
cerning the South American situation, he finds
plenty of opportunities for /Vmerican coal.s, pro¬
viding shipping can be arranged. Due to the very
high prices obtaining at South American ports
for coal at present, consumption in many lines
has been reduced. Many of the railroads are
using wood on certain divisions, while in the
mining regions, especially in the phosphate min¬
ing fields, he found that a great deal of oil was
being used. In southern Chile Mr. Carpenter
found that the native coal mines were being
developed to provide fuel. The Chilean coal runs
higher in volatile than do the American gas coals,
and consequently it takes a great deal more of it
to produce an equal amount of steam, especially
for the railroads, who are the largest consumers,
than do the American or Welsh coals. However,
on account of its cheapness, the Chilean railroads
arc using more of it than prior to the war.
No. 26]
THE BLACK DIAMOND
539
Philadelphia Trade.
Due to Embargoes Against Shipments
and the Approach of the Holidays,
Prices Eased Off a Trifle.
Office of The Black Diamond,
No. 1400 Land Title Building,
Philadelphia, December 23.
The coal market hereabouts has been, for
the past week, as nervous as an unmarried fe¬
male at retiring time. The distress of the
railroads and consequent embargoes became
the big feature of the market as soon as the
tie-up of cars forced the roads to that action
last Thursday. Coming Christmas inactivity
and inaction about mills and factories slack¬
ened up the demand and a see-saw in price that
concluded in a drop of fifteen to thirty cents
on the ton from the first of the week until this
was written. The big factors in the bituminous
market are of the opinion that a further drop
can be expected and are making no calculations
as to what the price may be a week from now.
One thing that all are firm in, however, and
that is the middle of January will see the
stringency in the same position that it was
when the top prices of ten days ago were
reached.
The big query at this time is — how long will
it take the railways to straighten out the mess
of cars that have clogged all of the arteries
about New York. For this information it
was necessary to go to the traffic offices of
the railroads here. No definite solution was
offered. One official vouchsafed the answer
that much had been accomplished in the week
that the embargoes had been placed. Another
pointed to a telegraphic story that appeared
in the local papers stating that there had been
a further tightening of the lines of restric¬
tions and declared “that is as good a guess as
I can give.”
What with every drop in price that was re¬
corded the market, however, is not in a “picky
and choosey” stage. Coal practically is with¬
out grading and a range of prices is for any
class of coal that can be put on this market,
with differences in price only applying to the
freight zones from which it originates. Mid¬
dle men with West Virginia coals to offer for
immediate delivery held this product on the
following range Wednesday, run of mine and
three-quarter-inch screened lump, $1.60 to $1.80
and slack at $1.50 to $1.60. Clearfield, Somer¬
set and Western Maryland offerings were
made over a wide range running anywhere
from $2.10 to $2.40 according to the pressing
needs of the prospective customer. From this
section the report on Wednesday that coal was
being held at Johnstown and Altoona at $2.20
at the mines and a local report that some box
car sales had been made with New England
delivery as high as $2.60 to $2.70 for steels.
The entrance of the operators from West¬
ern Pennsylvania into this market has been
cutting didoes. With coal at the prices named
they have been able to put in shipments at
prices ranging from $1.45 to $1.65 and even
higher than this last figure and take a profit.
With the shipping restrictions which have
been placed by the railroads the pier business
here, which is in no wise touched by the em¬
bargoes has taken on a new life. Many cars
started for tide have been switched to the
Port Richmond and the Greenwich yards. The
stringency that was being felt in getting bun¬
ker coal has pretty well disappeared. Export
shipments are not active and in figures are
below those of the corresponding week of
last year when bottoms could be had more
freely.
Anthracite Situation.
What is to be the result of the conference
that was held in Harrisburg by men prominent
in the hard coal trade on the question of
workmen’s compensation, is the lodestone that
is attracting the eyes of those who are in the
hard coal trade. Various means of making
the public absorb the cost have been advanced
and the all-important question of price will
have to be uncovered before long with the
law going into effect in the next ten days.
“We have not decided our course yet,” was
the answer that your correspondent received
from three representative heads of large coal
companies. And there you are. The January
circular will, this year, be of more than pass¬
ing interest.
The main question is what effect this
will have upon local retail prices. Many of the
contracts for the “star size,” pea, will expire
with the beginning of the year and with car
shortage, labor agitation and workmen’s com¬
pensation to be reckoned with, it is doubtful
if the low prices for pea coal can be expected
when the new contracts are written. This is
bound to have an effect on the price war that
has rocked Philadelphia for many moons. Even
with a fifty-cent advance in the price of this
size in three months retailers are still offering
it at $4.75 a ton — a ruinous price if full circular
is demanded at the very least.
Steam sizes have been in the highest de¬
mand for the past week. With bituminous
coal soaring plants which can burn the small
anthracite sizes became extremely nervous
over their fuel supply and have been doing
some heavy buying. One large order for
buckwheat at $1.85 was placed this week “so
quick that it made my head swim,” was the
way that the salesmanager, who made the deal,
put it.
Philadelphia Coal Club.
The Coal Club of Philadelphia is now an
established institution. On Thursday Decem¬
ber 16, what would have been the annual
meeting of the Philadelphia breaker of Ko-
koals was held in the ladies’ dining room of
the Manufacturers’ Club. Over seventy were
present and all in the course of the evening
approved the plans that were made for the ab¬
sorption of the old organization under its new
name style and without any affiliation with or
connection to any governing body. The dis¬
cussion that followed when President Frank
Mathers of the Kokoals rapped for order was
more as to details rather than as to the gen¬
eral movement toward the establishment of a
new association. It was decided first to or¬
ganize and then from the officers elected draft
committees to take action on by-laws, mem¬
bership and the various -other phases that will
have to be considered to make the member¬
ship attractive.
Many features are under consideration by the
individuAl members to make the club attrac¬
tive' both from a social as well as a business
viewpoint. Philadelphia has no common
grounds upon which coal men — retailers, mid¬
dle men and producers can meet and it is in¬
tended that this club can be the happy medium
for the purpose. The whole of the 130 mem¬
bers of the Kokoals breaker, it is thought, will
join the new organization and with the new
objects to be attained it is hoped to double
if not treble the number.
The officers who were elected were as fol¬
lows: Howard Perrin, president; F. F. Math¬
ers, vice-president; W. L. Scott, secretary;
Charles Scull, treasurer. The directors are:
W. C. Hancock, S. B. Crowell, J. M. Kelley,
Thomas W. Ayers, William J. Steen, Ambrose
Letters, H. H. Lineaweaver, S. C. Noblette,
D. B. Cunningham, Charles E. Eernberg, W.
E. Bernard, Walter Bush, W. H. Eastlak and
G. G. Smith.
Those who were present at this meeting of
organization were: Chevalier C. C. A. Baldi,
Howard W. Perrin, L. N. Holdt, W. L. Scott,
G. G. Smith, J. C. Freese, Thomas Gucker,
Jr., Walter H. Eastlak, D. B. Cunningham,
William Shubin, E, F. Mathers, W. L. Haw¬
kins, James M. Kelley, I, Nicholson, W. C.
Hancock, George P. Quigley, John Williams,
C. K. Scull, Louis Brande, W. H. Kneas, John
A, Coon, — Heiland, Robert L. Chalfant,
Thomas W. Ayers, Irvin T. Ward, George
Speese, Samuel B. Crowell, S. C. Noblette,
Howard McTurk, J. E. B. DeBergh, E. G.
Wagner, H, Landgraf, C. S. Chesburt, William
D. Hamer, Arthur C. Cohn, J. W. Mason, J.
M. Crean, David Isaacman, George W. Par¬
ker, Jr., C. E. Wilcox, John F. Meigs, Joseph
Missimer, George H. Story, Joseph W. Gucker,
B. S. Pusey, Henry C. Pearson, W. H. Clem¬
ency, I. Lampert, A. Steen, M. K. Kirkpatrick,
Robert P. Magee, J, Howard Magee, Wilson
W. Sell, Charles E, Fernberg, Ottey Darling¬
ton, William J. Steen, A, C. Peterson, David
Walters, F. S, Coale, H. E. Strathman, Jr., C.
J. .Snyder, John J. Cronin, W. E. Robinson.
Philadelphia Trade Notes.
A. P. Bryant, of the .Spring Coal Company
of Boston, paid his respects to friends in the
coal trade here last week.
“Uncle” Daniel D. Howard, of the Central
Fairmont Coal Company of Clarksburg, W.
Va., was a welcome visitor at the many offices
of his friends in this city early in the week.
Lloyd G. MeCrnni, of the Victor Coal Min¬
ing Company, and whose headcinarters are in
Somerset, Pa., droi)pcd in to the local offices
of that company while returning from a visit
to New York.
James Pugh of the Ajax Consolidated Coal
Mining Company of Hubbard, W. Va., was
one of the pre-Christmas visitors to the trade.
J. G. Emmons, who has been connected with
the Bell Telephone Company in this city, is
the third brother to become a member of the
firm of the Emmons Coal Mining Company.
He will join the firm on New Years day.
Christmas courtesies, calendars and remem¬
brances are the order of the day and the
gladsome season sees the general spirit of the
trade in a better condition than this time last
year. Visitors to the local offices this week
have been few — home ties and a humping mar¬
ket proving a double combination hard to
beat.
An epidemic of la grippe in an aggravated
form has hit the coal offices in this city as
hard as any other form of business. Stenog¬
raphers unable to longer withstand their aches
and sniffles have been missing from their desks
and even a few of the office boys fought
gamely to preserve good Christmas records
but were knocked out.
Charles E. Pool, who is at the head of the
Pool-Townsend Coal Company, with offices
in the Rockefeller building in Cleveland, Ohio,
had the hand-shaking privileges among ohl
friends this week. Several months ago this
company acquired mines in the Clarksburg
district of West Virginia. Mr. Pool left the
middle of the week for Clarksburg.
A two-sided appeal to the various legal
tangles which have resulted from the trials
of the so-called "Hard Coal trust” cases in
the local federal courts have been carried to
Washington. The government has appealed its
case wherein the U. S. Attorney General’s
contentions to dissolve an alleged illegal com¬
bination was only partially sustained. On the
part of the Reading Company an appeal has
been taken from the recent decision of Judges
Buffington, McPherson and Hunt, demanding
a divorcement of the Philadelphia and Read¬
ing Coal and Iron Company, the Lehigh and
Wilkes-Barre Coal Company and The Central
Railroad of New Jersey.
The many acquaintances and. friends of
Henry Liveright in the coal trade were
shocked to hear of his sudden death in Clear¬
field, Pa., while he was on a business trip.
For over thirty years Mr. Liveright was con¬
nected with the coal trade of this city. In
the late eighties he sold out a grocery business
in Philadelphia and went to Osceola Mills
where he entered the same trade. This dis¬
trict was in its early development stage and
he acquired a holding of coal lands which were
soon afterward turned into active operations.
He returned to Philadelphia and formed the
firm of Liveright, McCoy & Co., which was
later succeeded by Liveright & Co., and for
the last decade Mr. Liveright operated under
his own name. During the long years that
he was mining and selling coal he was iden¬
tified with many mining operations about
Clearfield, Osceola Mills and in Clearfied county
He maintained an office at No. 411 Walnut
street in this city. Mr. Liveright was a mem¬
ber of the Rodelph Shalom congregation. He
was a German by birth but came to this coun¬
try while a small boy. He is survived by a
widow, four sons and two daughters.
Several coal men interested in the operating
and producing end of the business were in
Harrisburg Tuesday and Wednesday attending
a conference with the officials of the State In¬
surance Fund board. Both the men from the
soft as well as the hard coal fields were given
a hearing. The big event of the meeting was
the announcement that the state rate for min¬
ing with shafts, tunnels or galleries or on
drifts or slopes for anthracite mines would be
$4.18 for anthracite and $3.45 for bituminous
mines based on each $100 of the pay-roll. This
the members of the state board declared was
a ten per cent reduction in the rates which
have been offered by stock companies. A grant
has l)een made by the state board allowing
the Lehigh and VVilkes-Barre Coal Company
in the anthracite fields. The Westmoreland
and Penn Manor Gas Company in the bitumin¬
ous fields to conduct their own insurance de¬
partments. Attorneys for the coal companies
asked all facts and made many inquiries as
to the workings of insurance under the state
board, but no decision was announced as to
the means that will be taken by the larger
companies to care for this compensation as
demanded by the state.
540
THE BLACK DIAMOND
[December 25
Buffalo Trade.
Buffalo, N. Y., Deceml)er 2.3. — (Special Cor¬
respondence.) — It is a (iiiestion whether much
loading of anthracite into vessels will he done
here this winter, as coal is not likely to be at all
plentiful and the rail demand is likely to he above
the average on account of the troubles expected
in the spring. Vessels will he plentiful enough
here this winter, as the largest amount of grain
ever held in the local harbor will be here this
winter. Xo doubt many of these vessels will he
looking for winter coal cargoes when they have
unloaded their grain.
The anthracite demand is good at present, run¬
ning largely to chestnut, on which some independ¬
ent companies are getting a premium of ten
cents. It is very short in this market and the
companies have booked many orders ahead. Pea
coal is also strong. Mines are now reported to
he running at sixty per cent of their capacity, or
even less, and production will he short during the
remainder of the year. Cars are not in sufficient
supi)ly to make prompt deliveries. No surplus
coal is being held here at present, while not very
long ago it was taxing the abilities of the coal
representatives to find places for what they had.
The outlook is for an active market for some
time.
The soft coal market has reached the maximum
figures of the year during the past two weeks,
owing largely to the big demand for coal east¬
ward. In Canada and nearby territory there is
no heavy inquiry for coal, hut prices have shown
an advance of about fifteen to twenty-five cents
during the past couple of weeks. Supplies are
light and the movement of coal is unusually slow.
The railroads complain a good deal of lack of
cars to move the coal and operators are finding it
a, hard matter to get either cars or men enough
to keep production anywhere near what it .should
he to fill orders. The congestion on the railroads
is shutting off the fields where coal can be deliv¬
ered, but this is believed to he only a temporary
influence and prices which declined a trifle a few
days ago are back again at the top levels.
More activity has developed in the bituminous
market during the past two months than for a
long time previous, and in all probability this
month will end with a vast amount more op¬
timism among coal men than was visible a year
ago. The outlook is for higher prices next
month, so far as most members of the trade see
it. They expect a temporary lull in orders for
the next week or two, but say this is offset by a
lull in mining as well.
Buffalo Trade Briefs.
i\1iller & Parsons, of Corry, Pa., have bought
out the coal interests of J. Fletcher .Xlden of that
city.
The Artificial Ice Company, of Warren, Pa.,
has discontinued its coal business, which was
started about a year ago.
C. S. B. Ward, representing G. P. Bassett, Jr.,
Pittsburgh, and George D. Rowland, of the Rich¬
land Coal Company, Wheeling, visited the trade
here this week.
Charles A. Royce has opened an office at 1028
Prudential building as Northeastern sales man¬
ager of the J. Harold Thompson Company, Pitts¬
burgh, with which he has been connected* for sev¬
eral years.
Dealers in Chautauqua county, especially in
Dunkirk and Mayville, report a largely increased
coal business on account of the .shortage of gas
in that section. A still further increase is ex¬
pected this winter.
The Pittsburgh Coal Company, which has for
many years had offices in the Prudential building,
will remove early in the year to 896-898 Ellicott
square, where it will have conveniently located
oftices on the Main street side.
Charles L. Couch, president of the Weaver
Coal Company, is one of the candidates for di¬
rector of the Chamber of Commerce at the elec¬
tion to he held on January 12. Twenty-two are
running and eleven are to be elected.
Receipts of iron ore at this port during the
past lake season were the largest on record, and
amounted to 5,328,608 tons. August and Sep¬
tember receipts were over 1,000,000 tons each.
Next .season is expected to be larger.
'I'he old Lackawanna lake trestle is dismantled
and the site of one of the elevators which was
to take part in the widening of the Buffalo river
channel is now deep water, hut the dredge has
not yet passed the site of the Union elevator,
which is close to the trestle. A new handling
plant is planned by the Lackawanna for some
time in June.
The work of perfecting the car unloader at the
Lehigh Valley docks at the Tifft I'arm is being
continued. About 400 tons were unloaded on the
steamer Brown, which was the last cargo to he
shipped by the company this season. The un¬
loader is expected to be in good shape to begin
the next season.
The way the railroads sometimes “get there” is
shown by the record of a car of coal, which on
November 18 a Buffalo shipper asked to have
traced for him. On December 21 he received a
letter from the railroad stating that the car had
arrived on November 24. Of course he had long
before known of the arrival of the car and taken
care of it.
New England Trade.
Boston, December 23. — (Special Correspond¬
ence.) — At the moment it is a most difficult
proposition to determine the exact basis upon
which the wholesale anthracite and bituminous
dealers of New England are doing business. .The
dealers themselves don’t really know. Conditions
existing in Boston are more trying than they
have been before in a great many years. Coal of
every description is actually scarce and prices
asked for it change with the rapidity of a “movie.”
Local agents of the big anthracite producers,
in a majority of cases, are absolutely refusing to
take on new business. As one of them puts it :
“What’s the use of taking on new business when
you can’t fill the old orders? It just makes a lot
of extra bookkeeping and it don’t get you any¬
thing except your goat.” .Another agent was
asked what the New England trade was calling
for most. His answer was “anything that looks
like coal.” Still another one says : “It is not a
question of price, but of getting coal supplies.”
-And that is the case with every wholesaler. The
Pennsylvania and the Reading railroads have put
an embargo on all freight moving into New Eng¬
land via the New Haven Railroad, which is
allowed enough coal for locomotives only. Under
such conditions it can be readily seen that the
all-rail movement of coal to New England points
is extremely unsatisfactory.
On top of this, anybody who is forced to go
into the open market for vessel bottoms is up
against it at once. There is very little to he had
and rates are almost prohibittive. Anyone get¬
ting coal into Boston Harbor is a very lucky
person, for they can secOre almost any price they
care to ask for it. We hear of stove and egg
selling alongside Boston Harbor at a premium
of $1 and nut at a premium of $1.25 over circular
prices. At Portland stove and egg has sold at a
premium of $1.25 in cargo lots, and for even
more for car-load lots. At Portsmouth, Provi¬
dence, Pawtucket and many other New England
points offerings have been so few and far be¬
tween and prices so erratic it would be unfair to
quote those markets. At Mystic Wharf there is
practically no spot market for anthracite, for
everything is sold before it gets there. In fact,
we know of instances where stove, egg and nut
have sold at a premium of fifty cents a ton on
cars at the mines before the coal has actually
been loaded on the cars. Local and nearby retail
anthracite prices have been advanced twenty-five
cents a ton and will undoubtedly go higher before
another month has passed.
Conditions governing the bituminous market
are even more acute than in the case of anthra¬
cite, owing to a greater demand for the product.
,As with anthracite there is no spot market for
New River, Pocahontas, Georges Creek or any
other coal at Mystic Wharf. Since a week ago
New River has sold in Boston Harbor at $7 per
ton before landed, a new high record price for
this movement, and just al)out double the price
asked a month ago. That price seems to have
been the extreme. Some houses have asked as
high as $9 per ton for Southern coals en route,
but it is believed that no actual sales have been
made at that figure. Some coal has sold as low
as $6,50 here, and one or two barges 'at $7 at
Portland. West Virginia coals are selling at
$1.75 to $2 on cars at the mines. Virginia smoke¬
less coal has fetched as high as $3.25 on cars
at the mines, while Pennsylvania bituminous has
changed hands at $2.25 to $2.35 per ton and not
especially good at that. Some choice Pennsyl¬
vania has .sold at better than $3 per ton on cars at
the mines. In view of the fact that comparatively
little bituminous is mined at this sea.son of the
year, local dealers expect a strong and possibly
advancing market until the middle of January,
when, they believe, the apex of the advance
should be reached. Reserve supplies at large
consumption points throughout New England
have been greatly reduced the past fortnight, and
another two weeks will see an actual shortage of
l)ituminous unless the weather moderates enough
to allow a freer movement of vessels.
The marine freight rate market is really more
than buoyant — it is tremendously excited. The
average price paid for space during the past week
from Hampton Roads ports to Boston has been
$3 to $3.50 per ton. From New York to Boston
as high as $1.25 to $2 per ton has been asked and
received, to Portland, $2 to $2.25, to Providence
and Pawtucket, $1.25 to $1.35.
The Pond Creek Coal Company produced 73,-
904 tons of coal in November; in October its
output was 72,274 tons.
Baltimore Trade.
B.M.TIMORE, December 23. — (Special Correspond¬
ence). — The coal trade has plunged into official
winter with a splash of great uncertainty. Prices
are soaring for the moment under what is appar¬
ently a false impetus of temporary railroad ship¬
ping restriction, car shortage and vessel scarcity ;
what may happen should any or all of these ele¬
ments find relief can be imagined. The demand
for fuel for consumption purposes by industries
here is but moderate, but nearly everybody is get¬
ting short of coal or sees shortage ahead as a
result of restricted movement of fuel from mines
to terminals.
Cold weather and car shortage is having an ef¬
fect on anthracite. The retail situation here is
tightening rapidly. .A number of yards are now
reported short of certain sizes, and urgent action
l^ehind individual shipments is necessary to keep
abreast of existing obligations in many cases
without entering into new ones.
The bituminous situation, however, is the one
of greatest interest. The market is almost one
of trading between coal man and coal man, and
some fancy prices have been asked and secured
the past week. It is largely a market in which
coal is coal, and steam varieties have about hit the
same level in most cases. Low grade gas coals
are still to be had in limited quantities at less
than steam coals bring here, but hi.gh grade gas
coals are practically, if not entirely, out of the
market. Efforts to get quotations on low sulphur
Fairmont coals were generally without avail the
past week.
Prices to the trade where operators furnish
equipment from allotments was about as fol¬
lows during the past week :
F. O. B. F. O. B.
Fairmont — Mines. Baltimore.
Three-t|uarter . li;l.90@2.00 $3.4S
Run of mine . 1.65@1.75 .3.23
-Slack . 1.65 3.13
Somerset —
Best . 2.73 3.93
(iood . 2.50 3.68
Freeport —
B. & O. and W. Md . 2.00@2.2.) 3.43
South Fork —
Best . 2.50 @2.75 3.93
Miller Vein —
Best . 2.25@2..50 3.6,S
Ordinary . 2.00 3.18
Baltimore News Briefs.
Vessel rates continue exorbitant both on for¬
eign delivery and coastwise account to New En¬
gland and the north. Water haul has been
thrown more into competition with rail because
of Pennsylvania and other general freight rate
embargoes and congestion. Durin.g the past week
rates to Boston have run as high as $3.50 per ton
asked and closed, while Providence brought up to
$3.00. The export rate, especially to Mediter¬
ranean and other submarine infested waters, is
out of sight. -As the result of $25 to $30 a ton
coal rates to Mediterranean ports, the Italian in¬
dustrial situation, which has relied largely until
recently on shipments of coal from this port, is
reported as badly hit. Coal is selling in Italy as
high as $40 a ton.
E.xports the past week from Baltimore showed
some improvement, the total being 17,816 tons.
The Alaryland Steel Company has just closed a
90,000 ton rail order with the French government.
Some comment was cause in the coal trade by
the fact that several cars of New River coal were
shipped here all rail. This coal can be secured at
Hampton Roads on a mine basis of about $1.50,
and even the hi.gh all-rail freight rate put it into
Baltimore cheaper than some of the competing
steam coals of this port are bringing here.
Barge rates between Norfolk and Baltimore
have trebled in the past three weeks. A rate of
$1.50 a ton against coal makes shipment that way
almost an impossibility.
Vol.
o
o O.
CHICAGO.
D-iCCICiVdyJCil 2 5, 1915.
MFAY YORK.
$3.00 Per Year.
Index to Advertisers, Pages 36 and 33
’WT’
SANTA CLAUS— “I’ve been in this Christmas present
business for a good many years, but I’ve never seen so
many dealers wanting PURITY SOOTLESS COAL as
this year.’’
SPECIAL FEATURE ARTICLES
page 521
. 522
. 523
. 524
How Chicago Began to Study Cost Accounting . . . .
An Bastern Retail Cost Accounting System .
Handling Anthracite Over Loading Docks .
Barker Company’s Circular Concrete Coal Pockets
PROGRESSIVE GOAE
72 West Adams Steet, CHICAGO
N. W. Sales Office: — 916-918 Security Bank Building, Minneapolis, Minn.
E. C. PRATT. N. W. Sales Agent
Exclusive Selling Agents— PURITY SOOTLESS COAL
Mined by the Christopher Coal Mining Co., Christopher, Ill.
SUNDERLAND BROS. CO., Omaha, Neb. — Agents for Kansas, Missouri and Nebraska
F. J. BROWNING, Manager of Sales
Never in the history of this company has there been such a firni and
universal demand for —
PURITY SOOTLESS COAL
as at the present time. Not merely just a temporary, flash-in-the-pan rush of
business, but a steady increase growing larger each day as each day grows colder.
To be exact, our records show an increased tonnage of over 333^ per cent over
that of last year.
News travels fast and by many tongues. Judicious buyers of domestic coal,
always on the alert for a more satisfactory and economical coal to burn, have
learned of PURITY BOOTLESS and are buying this coal from those dealers
handling it and demanding it from those who don’t.
If you happen to be one of those dealers u’ho don’t — let us take up the matter
of an Agency for PURITY COAL with you. It pays and pays big.
- OOOOO -
CDcrc's notbind that adds more to tbe pleasure of business than cordial re¬
lations with one's customers, and now that tbe b^lidav Season Is at band, laden with
its spirit of good fellowship, we want to tbank you for past faoors, and to wish that
you may enjoy a flowing measure of bcaiib, happiness and Prosperity all through tbe
coming year.
PURITY COAL COMPANY
2
TPIE BLACK DIAMOND.
[December
ISAAC T. MANN CHARLES S. THORNE THOIv/iacit odd.-..
Vice-Pre.ident G^nefa^Man^gfr '^Asl” G.n^I Manag’l'^'^ CEO. W. WOODRUFF
POCAHONTAS FUEL COMPANY
Sale. Department of Pocahonta. Con.olidated Collierie. Company, Incorporated.
Miners, Shippers, Exporters and Bunker Suppliers of
“ORIGINAL POCAHONTAS” COAL
Ship from 22 Mines in the Pocahontas Coal Field ci_*
Ship 5,000,000 ton. per annum by all-rail, tidewater and the Great Lake.
LARGEST PRODUCERS OF SMOKELESS COAL IN THE UNITED STATES
taken fromTa^loe‘’.’[FurniVheTby®Pocrh?nt«'Fu^^^^
n r- ^ Fixed Carbon - 74 0i_
P. F. C. Volatile Matter . ‘ ‘ . ' Jg U ^ P F r
REGISTERED SIGNAL > Sulphur . .. .. p.f.c.
Hampton Road. ^ ..'re - ^ I] POCAHONTAS^
m , . . Trade Mark
Total - . 100.00
British Thermal Units 15003
THl. coal i. — .nrrX".\V:.-at I^o^a^H^ FieM were made from the mine, of the Pocahonta.
niinmstheNo.3 veinand.hip;i^TrhVEiK;r*ldLTprafeV::^^^^^ "»«
LARGEST EXPORTERS OF SEMI-BITUMINOUS COAL IN THE UNITED STATES
No. 1 BROADWAY, NEW YORK
BRANCH OFFICES NORFOLK, VIRGINIA, 117 Main Street BOSTON MASS Rnar/i nf t* a n ~^a- t»t ttt^ «
CHICAGO. ILLINOIS. Fisher Building ’ - CINaNNATI OHIO T VIRGINIA. Pocahonta. Building
dock, BOSTON. MASS.
TIDEWATER PIERS; Lambert Point, Sewalls Point, Norfolk; and Newport News, Va.
Tug. Bunkered at City Pier., Norfolk, Virginia
tin-American, West Indian and European Coal Consumers Invited to Correspond with
POCAHONTAS FUEL COMPANY, No. 1 Broadway, New York City U S A
llll>iilIl[lllll[llll|[|[|I|[IEI
SETTLE THE QUALITY QUESTION
We are living in a “QUALITY AGE.”
QUALITY in everything is demanded on all sides.
QUALITY in Bituminous Coal means a combina¬
tion of essentials, demanded by those who use it.
It must be free burning; quick to get into action if
necessary; it must hold fire all night if required; it
must be absolutely clinkerless; it must make very
little ashes; it rnust work satisfactorily in the cook
stoves, the heating stoves, the furnace and the open
grate as well; it must be clean and highly prepared.
These specifications are demanded by the trade —
very few coals can fill them satisfactorily. Settle
the QUALITY question and use BLACK STAR or
BLACK CRESCENT COALS.
WALLINS CREEK COAL COMPANY, Inc.
MINE OPERATORS
WALLINS CREEK SALES COMPANY, Inc.
EXCLUSIVE SALES AGENTS
Companies Under Same Management
E. R. Clayton, Sales Manager, Pineville, Ky.
Illlllllll[||||in[|||||||||||||
iiiiiiiiiiiinniiiiiiiMiiiiiii
ORDERS, satisfactory orders are the result
of work and study along right lines. Satisfactory
orders in the retail coal business are the result of
careful study and judicious buying of efficient and
economical coals. For more satisfactory orders
try a car or two of
WOLF RUN - HOCKING
l>OJVIE^{STlO
A coal mined and prepared expressly for the
dealer and his domestic trade. Domestic sizes
are (>" LUMP, LUMP and li4"x()" RE¬
SCREENED EGG.
New York Central Lines
LET US SEND YOU PRICES. WRITE
W. H. WARNER & COMPANY
811 Leader-News Bldg., Cleveland
OPERATORS
KINDER MINE— Pa. R. R.
Youifhiogheny District
LEONARD MINE — P. 6 1. E. R. R.
Youghio^heny District
PEYTONA MINE
Blach Band, W. Va., District
WAR MINE
Pocahontas, W. Va.. District
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIA3I()NI).
3
r
alphabetically speaking
is for CHICAGO — more
particularly for 407 McCor¬
mick Building, Chicago — a
good place to buy good coal.
for WILMINGTON —
the leading Northern
Illinois coal. A favorite
for forty-eight years.
I
&
( this case) stands for
ROYAL & THAYER,
well-known twin mines in
Central Illinois, producing an¬
nually more than a million tons of
Royal Thayer Coal, and
m- is for FRANKLIN— that
justly famous County in
Southern Illinois and
the home of ORIENT, one of the
largest and finest coal mining plants
in this country.
taken together, stands for
An Organization
painstakingly built and
equipped to give Good
Coal Service, and specializing in the
production and wholesale distribu¬
tion of Best Illinois Coals.
0
iL/.
&r
D
N
lllUill
McCormick Building, Chicago
C0AL(p.
Producers of Best Illinois Goals
Daily Capacity 12,000 Tons
ORIENT ROYAL THAYER WILMINGTON STREATOR
Mention The Black Diamond when writing advertisers.
4
THE BEACK DIAMOND
[December 25
FRANKLIN COUNTY
A Merry Christmas
and a Happy and Prosper¬
ous New Year to all those
in the coal trade.
We thank those whose appreciation of our efforts and our service has
caused the year almost passed to be one of our most successful years, and
hope that our past relationship will warrant a continuance of your favors.
We solicit a trial from aU those who have never tried our service, and
who are not familiar with our coals. To those who are anxiously striving
to find a more profitable and satisfactory coal to handle, we :recommend
‘‘MITCHELUS
THE PEER OF FRANKLIN COUNTY
The high quality and thorough preparation of this .coal and the satis¬
factory service rendered by this company has helped hundreds of dealers
to a better coal to buy and a better place to buy it.
It is mined at Royalton, Ill., prepared in all sizes, and shipped over
the C. B. & Q., M. P. and I. C. Ry’s.
The same careful attention given an order as is given- an inquiry.
Write
Bickett Coal & Coke Co.
507 McCormick Bldg.,
Chicago, Ill.
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
O
■'Sir:
iMay' your’
I Christmas
prove to be a merry ending of your most successful year,
and your New Year a happy beginning of a better one.
As in former years, we have put torth every effort in
accomplishing our work, — the task of making our
service of even a more satisfactory character, and
CHRISTOPHER COAL
a little nearer perfection. The year 1916 will see us
continuing the work with renewed vigor and added effort.
We solicit a continuance of patronage from all of our
regular customers, and an early trial from those dealers
who are not now familiar with CHRISTOPHER COAL
nor the satisfactory service rendered by us.
C. M. MODERWELL & CO.
1060 McCormick Bldg., Chicago, Ill.
Mention The Black Diamond when writing advertisers.
6
THE BLACK DIAMOND.
[December 25
I
iibbki
t this season it
is but natural to
pause for ^ ^
contemplation.
Our business relations
have been most pleasant.
The friendly ties which
bound us before are even
more closely cemented. ^
Y es, it is a joyous season
and made so in no small
part because of our ^ ^
^ relations with you.
BIG CREEK COLLIERY COMPANY
CHICAGO
Mention The Black Diamond when writing advertisers
No. 26]
THE BLACK DIAMOND.
7
Furnishing the Best on
Earth in Coal, our Christ¬
mas wish would naturally
be the best of everything on
earth to you.
McCORMICK BUILDING
CHICAGO
Mention The Black Diamond when writing advertisers.
8
THE BLACK DIAMOND.
[December 25
hearty wish for a Merry
Christmas and a Happy
and Prosperous New Year to
all in the fuel and allied trades.
SOLVAY SOLVAY
POCAHONTAS COAL KINGSTON COAL
AND
SOLVAY COKE
I **The Fuel Without a Fault”
BY-PRODUCTS COKE SOLVAY COLLERIES SOLVAY COLLERIES CO.
CORPORATION COMPANY & SEMET-SOLVAY CO.
Marquette Bldg., Chicago, III. 1023 Union Central Bldg., Cincinnati, O. Detroit, Mich.
‘‘It pays
to be a
SOLVAY
dealer/'
!
1
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND
9
KAithithgAttAKhitAKAttlkttAKAIttMASAitAttiMAitA
ay your Christmas be
as Merry and your
New Year as Happy
as you have made our last
year a successful one. « « «
Producers Coal Company
D. H. Jenks, General Manager
GENERAL SALES OFFICES : NORTHERN SALES OFFICES :
Union Central Building Dime Bank Building, Detroit
Cincinnati, Ohio R. C. Hurd, District Manager
MINE OWNERS AND SHIPPERS
^^The Distinctive Brands^^
Mines Located on
Norfolk & Western and Chesapeake & Ohio Railways
BEST GRADES
West Virginia and Kentucky
Splint and Gas Coals
Annual Capacity 2,000,000 tons
‘‘Best Quality? “Best Preparation’’ “Best Service”
Lake, Rail and Tidewater Shipments
VlV1tV%V1tV%V«.V%VlbV%V%V%V%V«V«.V%V%V%V«.V
Mention The Black Diamond when writing advertisers.
10
THE BLACK DIAMOND.
[December 25
LettKeHolid^ .^eaj’onbe
brigntened for jour Gi.rtoiiierj’
andj^our trouble j* lightened
^ filling tneir orderj' with
Dependable Coal
j.jr WENTZ V COMPANY
MARYD COAL CO. MIDVALLEY COAL CO.
UPPER LEHIGH COAL CO.
PHILAPELPHIAPA.
DETROIT MICH.
Mention The Black Diamond when writing advertisers.
No. 26]
11
THE BLACK DIAMOND.
A Merry
Christmas
and a Happy
New Year to
Everybody.
• • • •
Gil
more
& Sol
omon
(?o al Minin (Company
C. W. GILMORE. Pres.
Nature’s gifts to
the coal dealer
Westville
3 mines, Vermilion
Co., Ill. Domestic
and Steam Coal.
Long flame, low in
sulphur and ash.
‘‘Little Jack’»
2 mines, Franklin Co.,
Ill. Domestic Lump,
Egg and Nut. “As
good as the best and
better than the rest.”
Clinton, Indiana
6 Mines, 3rd, 4th, and
5th Seam.
Original Hillsboro
1 Mine, Montgomery Co.,
Ill. Eight inch coal.
Good for domestic use.
“Clinton FourthVein Gas Coal”
For brick, tile, malleable iron
work, pipe plants, gas companies
and gas producing, this Fourth
Vein Coal has no equal. It is a
fuel that will assure the greatest
economy in plant operation.
J. K. Dering Coal Co.
1914-1919 McCormick Bldg., Chicago, Ill.
J. K. Dering J. B. Roynon W. H. D. Gibson A. R. Odell
Mention The Black Diamond when writing advertisers.
12
THE BLACK DIAMOND.
[December 25
extend to you
the Greetings
of the Season
with the sincere wish
that the coming year
will be one of Peace,
Progress and Prosperity
Consolidafion Coal Co.
BALT/MOff£ , Jtfo. D
- Irocoino/hi^
(Gold) Medal of Honor Awarded The Consolidation
Coal Co., by the Panama-Pacific Exposition,
THE HIGHEST AWARD
Consolidation Elkhorn
Same^heatjas Pocahontas, with one-half the ash.
Lumpy. Hard. Free-burning.
Ocean Smokeless Lump and Mine Run
The perfect smokeless coal.
Georges Creek Big Vein Cumberland
Smithing
The International^Standard
Consolidation Anthracite
Always uniform and dependable.
Millers Creek Kentucky Block
The perfect and profitable domestic coal.
No. 3 Pocahontas Lump, Egg, Washed Nut
Washed Pea, and Screened Mine Run
The firmer kind.
Elkhorn Laclede Gas Coke
A perfect domestic fuel. Low in ash and free -burning.
St. Louis Elkhorn By-Product Coke
For Foundry, Furnace and all Industrial
and Domestic L^ses.
THE CONSOLIDATION COAL COMPANY
INCORPORATED
E. M. MANCOURT, Western Manager, Fisher Building, CHICAGO
DETROIT
CHICAGO
CINCINNATI
LOUISVILLE, KY.
ST. LOUIS, MO.
C. A. CHAMBERS, Mer.
J. B. BEARDSLEE, Mgr.
THOMAS H. RICHARDSON, Mgr.
G. E. DAVIS. Mgr
M. W. WARREN COKE CO.
Dime Bank Bldg.
Fisher Bldg.
W. T. COE
Union Central Bldg.
Manager, Billiter Square Buildings, London, E. C., England
Paul Jones Bldg.
Laclede Gas Bldg.
Operators of 101 Mines in Kentucky, West Virginia, Pennsylvania and Maryland
Mention The Black Diamond when yriting advertisers
No. 26]
THE BLACK DIAMOND.
13
m
WL
A M I)
M i
AJ'
BITUMINOUS
COAL
COKE
l^enn
ik 31<lg,
Fhilncloljiliifi, Pu,
wAa yXf/^ *
fji
- •M
mmmm
WILL YOU
INVESTIGATE
Our claims for VULCAN
BY-PRODUCT COKE
(the Perfect Fuel)
That it is as good a coke
as you can buy and with
greater profits.
Vulcan coke is now being
handled by hundreds of
dealers who formerly
depended upon Hard
Coal. All we ask is for
you to try it.
Vulcan Quality makes
permanent customers.
ATWIll-MAKEMSON
COAL AND COKE
COMPANY
specialize in guaranteed Cokes
for every use and shipment to
all parts of the country.
YOUGHIOGHENY
FORKED GAS HOUSE
HAMILTON OTTO
BY-PRODUCT F’DRY
VULCAN DOMESTIC
AND RUN OF OVEN
72-hour Foundry, 48-hour Fur¬
nace, from Connellsville, Pa.,
West Virginia, and Wise
County, Virginia; also Soft
Coke for Core Oven use.
Phone or Write
ATWIll-MAKEMSON
COAl AND COKE
COMPANY
McCormick Building
CHICAGO
Phone
Harrison 1911-1912
Phone
Harrison 1913-1914
Mention The Black Diamond when writing advertisers.
14
THE BLACK DIAMOND.
[December 25
Williamson County Coal
after being once tried, becomes as much of a necessity to the
household as any other staple brand of article which the house¬
wife knows she can depend upon. It becomes just as much of a
habit for her to order Williamson County Coal as it is for her to
order her favorite brand of flour, soap or thread.
Continuous experience in buying and burning the coal has proven
to her that Williamson County Coal is always of that clean and
uniform preparation and of that exceptionally high quality for
which this coal is known.
The first trial demonstrated to her that this coal was a more
economical and satisfactory coal to buy. Economical, because
it furnished more heat at a smaller cost per ton than any other
coal she had ever used. Satisfactory, because Williamson County
Coal made little smoke or soot while burning and left very little
ash to dispose of.
What is more, the housewife learned that this coal burned equally
as well in a hot water or steam boiler, hot air furnace or open
grate as it did in her cooking range. In other words, it was a
universal coal.
For a coal that will establish its own permanent patronage, order
a car or two of Williamson County Coal.
R
n
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND
15
OTTER CREEK COAl COMPANY
417 So. Dearborn St., CHICAGO
and BRAZIL, INDIANA
PRODUCERS
Celebrated White Ash Brazil
Block Coal
For Steam and Domestic Use
Mines Extra Large
Well Screened
Stocks Well
No Clinkers
No Stringers
Soft Light Ash
Long Bright Flame
Burns Up Clean as
Wood
Holds Fire a Long
Time
Less Coal to Handle
GENUINE
Lower Vein
Brazil Block
Shaft Mined
For steam Users It
Means:
Less Ash to Handle
Mere Steam
Cheap Steam
No Sulphur, Hence
No Leaky Flues
No Burnt -Out
Grates
Contented Firemen
Happy Engineers
A Clean Smoke¬
stack
It gives abundance of STEAM. Plenty of STEAM makes
everything and everybody move faster.
To be sure of getting GENUINE, SHAFT MINED,
LOWER VEIN BRAZIL BLOCK COAL,
order from the Miners.
Hiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
TU
Rid
In Sealed Box Cars for
the Northwest 7 rade
All Sizes
of KENTUCKY PRIDE COAL are shipped in Sealed
Box Cars to assure the buyer that the coal is of the same
quality that it was when it left the producer.
KENTUCKY PRIDE BLOCK
is one of the best domestic coals produced. It is hard,
square and lumpy in structure, free burning, little ash,
and practically no smoke or soot.
KENTUCKY PRIDE WASHED EGG
and
KENTUCKY PRIDE WASHED STOVE
sizes 4x234" and 234x13^ respectively, are the last words
in the preparation and quality of coal. No screenings or
impurities.
Write for delivered prices
R. C. Whitsett Coal and Mining Co.
Transportation Building
CHICAGO, ILL.
.TillllllllllllMIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllllllillllllllllllllllllllMIIIIIItT:
*yj"AV.V.V.V.V.".V.VV.V.W.V.V.W.V.V.V.VA".V.V.V-V-".V.^'
i
A car or two direct to you
And in Sealed Box Cars
iTfrrr r-
minmimji
GENUINE
PITTSTON ANTHRACITE
ROLLER SCREENED AND RE-SCREENED AT OUR MILWAUKEE DOCKS
VICTORY SPLINT LUMP
FROM WEST VIRGINIA. DOCK PREPARED
nimionur.
Z3.
VIRGIN POCAHONTAS
EGG OR LUMP. DOCK SCREENED
WRITE
I
1
Pennsylvania Coal & Supply Co. S
All roads Milwaukee Milwaukee, Wis. !•
The Standard of Excellence
A Symbol of Quality
C. C. B. POCAHONTAS C. C. B. NEW RIVER
Officially endorsed by the Governments of Great
Britain, Germany, Austria and the United
States. Mines on the Norfolk & Western Ry.
THE CREAM OF THE NEW RIVER FIELD.
Unsurpassed for the generation of steam.
Mines on the yirginian Railway.
ASHLESS, KY.
THE PEER OF ALL ^NTUCKY COALS. Tumbler
Shaker Screen Preparation in Two Sizes — BLOCK and EGG.
The BLOCK size can be loaded in BOX CARS, if dwired.
Shipped from the Hazard District on Louisville & Nashville Ry.
SOVEREIGN BITUMINOUS CINDERELLA SPLINT
A FREE NON-CLINKERING COAL,
LOW IN ASH AND HIGH IN
HEATING VALUE.
A genuine WEST VIRGINIA WHITE
ASH SPLINT, unbeatable for domestic
purposes. Stocks like ANTHRACITE.
1
SAMUEL CASTNER, Jr., Praa. P. A. CASTNER, Saoy. mmd Traas.
LEMUEL BURROWS. Jr., V.-P. and G. M.
Castner, Curran & Bullitt, Inc.
SOLE AGENT
Main Offioe: Stock Exchange Balldlng, Philadelphia
BRANCH OFFICESi Naw Yark Chloaga Narfolk Raanaka
EUROPEAN AGENTSi Hull. Blyth & Ca., Lanaon. Eng.
Cincinnati
•r -a
^/J■aVWarJWd■irJWarAVi^A^^v^JVaV^^d■.vwwu^^vlAwwvvwJ^
:.c.E
"POCAHONTAS'
.^SMOKELESS.,
JCOAL^
X.C.B^
NEW RIVER
JSMOKELES^
Mention The Black Diamond when writing advertisers.
16
THE BLACK DIAMOND.
[December 25
Clinchfield
Navigation
A coal of the highest
standard for bunkering
ALWAYS IN STOCK AT
NORFOLK, VA.
WILMINGTON, N. C.
CHARLESTON, S. C.
SAVANNAH, GA., and
GALVESTON, TEX.
Clinchfield Fuel Company
Spartanburg, S. C.
24 Broad Street, New York
EUR EAN AGENTS :
HARRIS & DIXON, LTD., 81 GRACECHURCH STREET
LONDON, ENGLAND
Lincoln Coal
“Same as the last’"
LINCOLN is known as the hardest coal
from either Illinois or Indiana. It is one
of the most thoroughly and carefully pre¬
pared coals in the country. Its quality is
equal to any produced.
LINCOLN COAL is prepared in all do¬
mestic and steam sizes;
Lump passes over a shaker screen, Egg and
Nut sizes are put through a revolving screen.
For a coal that will satisfy your trade and
increase your business, write
LINCOLN -SPRINGFIELD
COAL COMPANY
900-904 Old Colony Bldg., Chicago
_ SPRING VALLEY COAL COMPANJT _
Producers of THIRD VEIN COAL Exclusively
CAPACITY OF MINES, 6,500 TONS DAILY
ADDRESS ALL COMMDWCATIDHS TD PRINCIPAL DFFICE
SUITE 915 OLD COLONY BUILDING, 407 $0. DEARBORN STREET CHICAGO, ILL.
J. K. DERIHG, President J. B. ROYNON, Secretary
J. K. BERING COAL COMPANY
1914-1920 McCormick Btiilding, Chicago, Ill.
TELEPHONE, HARRISON 6906
“LITTLE JACK”
Franklin County, Illinois, Domestic Lump, Egg and Nut
W. H. D. GIBSON A. R. ODELL
Y oughiogheny The House of Quality Black Band
Hocking Pocahontas
ww» w% , The Company with the Coal and the Service Crtrinol
C4/. Ua, yjpLint Anthracite and Bituminous Coal K^UTlTlfs
Red Jacket tu d • 4- 1 ^ Smithing
Kentucky Elkhorn *”**^*'^ Kentucky Derby
dtlKBOYOAN, WIS.
DOCKS AT — Sheboygan, Manitowoc, Green Bay, Ashland, Superior n-nd Two Rivera, Wis., Esoanaba, Mich., Waukegan, III,
L. R. ROTTER H. P. HARMON R. H. CLARK
FTee. A TreM Vice-President Secretnry
DAVID RUTTER & COMPANY
Incorporated
COAL and COKE
417 S. DEARBORN STREET, CHICAGO
Telephone Herrieea 1440
WHOLESALE RETAIL
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
17
I
1
3
s
yv
c
Ml
•1
wr, o. ooooivow' co.
MI IV IV J® S
Kentucky, Pocahontas, Cannel, Illinois, Coke.
All Dock Coals. Bituminous and Anthracite.
. - - — ° " .
V.V.V.V.V.V.V.V.V.V,V,V,V■V■V^V■V^V■V■VilF.V.V.^^V,V,VJ^^V,V,^VAV,V,^^^^^^^^^^^^^V■^V^^^^V^V■V^V^V■^■V■V^^V^V■^■V.C
Pennsylvania Coal & Coke Corporation
MINERS AND SHIPPERS
WEBSTER-BITUMINOUS COAL-PARDEE
WEBSTER SELECTED SMITHING COAL
FOUNDRY AND FURNACE COKE
Ownen and Operators of the only Aatomatis Coaling Barges in New York Barbor.
BUNKERING A SPECIALTY
Shipping; Piers:
NEW YORK,
PHILADELPHIA
BALTIMORE
- - - Port Liberty
Port Richmond and Greenwich
- - - Canton Piers.
NEW YORK, 17 BATTERY PLACE
Boston. 141 Milk St. Syraoose, Union Boilding Philadelphia, Land Title Bldg. Hartford, 34 Pearl St.
HXILL, BLYTH ft CO.. No. 1. Loyd’s Ave., London, E. C., EUROPEAN AGENTS.
20 Mines
Capacity 10,000
tons daily
THE WHITE OAK COAL COMPANY
Macdonald, West Va.
Sales and Distributing Agents for The New River Company’s famous
“White Oak” Smokeless Coal
LUMP EGG MINE RUN STEAM and SMITHING
Mined in the heart of the famous NEW RIVER SMOKELESS coal field of West Virginia
SERVICE, QUALITY and PREPARATION Our Aim
C. H. SPRAGUE
& SON
Boston Mass.
TIDEWATER AGENTS
londotT^ents
MOORE & FLETCHER
101 Leadenhall St., S. E.
BRANCH OFFICES
Cincinnati Chicago
Washington Newport Newi
Indianapolis
tibe IRew (pittsburob Coal (TompaiTg
Incorporated in 1886
Miners and Shippers of
GENUINE HOCKING
VALLEY COAL
From the Heart of the Hocking District
General Office
50 East Broad Street, Columbus, Ohio
Western Office Northern Office
1105 Old Colony Building, Chicago 1124 Majestic Bldg., Detroit
All Upper and Lower Lake Port Shipping Docks
Mines: Powell's Run, Murray City, Greendale, Kittanning, New Monarch
NEW RIVER COAL
COMPANY
Miners and Shippers of Sfandard Grades New River Goal
GENERAL OFFICE, CHARLESTON, W. VA.
C CHICAGO, 1 708 FIshar Bulldina
BKftNCH OFFICKS: ] 'J.* *
i CINCINNATI, O., 601 Naava Building
t NORFOLK, VA., National Bank of Commoroo Building
New England Agents, NEW ENGLAND COAL & COKE CO.
Ill Devonshire Street, Boston, Mass.
Tidewater Shipping Piers:
Newport News, Va. and Sewalls Point, Va.
THE LORAIN COAL & DOCK COMPANY
New Hayden Building, Columbus, Ohio
ISLAND CREEK, : LOGAN COUNTY, W. VA.
No. 8 PITTSBURGH : BELMONT COUNTY, O.
HOCKING : ATHENS COUNTY, O.
KENTUCKY BLOCK : PERRY COUNTY, KY.
DAILY CAPACITY OF THESE MINES, 15000 tons
DETROIT BRANCH David Whitney Bldg.
WRITE US
CLEVELAND BRANCH Rockefeller Bldg.
O’OiARA
Ol3.ioae:o, Ill.
HARRISBURG
FOR HEAT
Mention The Black Diamond when writing advertisers.
18
THE BLACK DIAMOND.
[December 25
For coal and service
that warrants the trial
order and justifies the
continued patronage
try
CONSUMERS COAL
Only the best Steam and Domestic grades
handled. Shipments on any railroad.
Consumers Company
Consumers Bldg., Chicago
Telephone Wabash 1
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
19
B. Niooll & Coixxparxy
GENERAL SALES AGENTS
PITTSBURGH TERMINAL R.R. & COAL COMPANY
Saw Mill Run Youghiogheny Steam and Gas Coal
GENERAL SALES AGENTS
DILLTOWN SMOKELESS COAL COMPANY
Miller Vein Smokeless Coal
GENERAL SALES AGENTS
NORTH PENN COAL COMPANY
Kaylor Steam Coal
EASTERN SALES AGENTS
FOUR STATES COAL & COKE COMPANY
Annabelle Fairmont Gas Coal
General Offices, 149 BROADWAY. NEW YORK
Pittsburgh Philadelphia
SALES AGENTS
THE DAVIS COAL & COKE COMPANY
Cumberland Steam and Davis Smithing Coal
NEW ENGLAND SALES AGENTS
THE CHESAPEAKE & OHI9 COAL & COKE COMPANY
Admiralty New River Smokeless Coal
SALES AGENTS
LATROBE-CONNELLSVILLE COAL & COKE COMPANY
Lathrobe Steam Coal
FURNACE, FOUNDRY and
SMELTER COKE
European Agents, WM. JACKS & CO., GLASGOW, SCOTLAND
Boston Baltimore Chicago
ANNUAL OUTPUT
OVER ONE
MILLION TONS
A
VIA C. 8s O. RY.
AKD
VIRGINIAN RY.
THE C. G. BLAKE COMPANY
CINCINNATI, U. S. A.
NFW RIVPR STEAM and
PIEiww Imilfdm DOMESTIC
SMOKELESS
COAL
LUMP— EGG— NUT
MINE RUN
CHAMPION” SMITHING
CHICAGO, ILUNOIS
LYTTON BLDG.
NEW YORK
1 BROADWAY
NORFOLK, VA.
ROYSTER BLDG.
THURMOND, W. VA.
NEW ENGLAND AGENTS
OEO. E. WARREN COMPANY
BOSTON, MASS.
LONDON AGENTS
HXJLTON, THOMPSON & CO.
LONDON, B. C. ENGLAND
OFFICES:
New York, Chicago
Norfolk, Va.
London, En^.
H. N. Hartwell £t Son,
Inc.,
70 Kilby St., Boston
MILTRENA COALS
New River
Pocahontas
Gas
On Land
and Sea
Splint
WHARVES:
SMOKELESS FUEL CO.
I ATI. OHIO, U. S. A.
Newport News, Va.
Lamberts Point, Va.
Sewalls Point, Va,
Phone Harrison 448
Chicago Manager
Chicago OfHce:
414 Fisher Buildin
VE>i:iV oo^r^ 00.
No. 4 INDIANA GAS
Mine at Macksville, Ind.
Vandalia Connections
PRODUCERS OF
No. 5 INDIANA STEAM
Mine at Princeton, Ind.
C. & E. I. and Connections
ALDEN COAL MINING CO.
Crushed Coke
Fairmont Gas Coal Carnwath Bituminous
Connellsville Furnace and Foundry Coke
YEARLY CAPACITY 4,000,000 TONS
Cabin Creek Consolidated Coal Company
MINERS AND SHIPPERS OF
Acme Splint and Keystone
aNCINNATI. OHIO
C. R. Moriarty,
Weatera Saks Agcal
Union Central Bldg.
DETROIT, MICHIGAN
L C. Ruffner,
Nortkern Salea Agent
1 228 Majeadc Bldg.
Gas and Steam Coals
GENERAL OFFICE:
SALES DEPARTMENT
CHARLESTON, W. VA.
W. M. PUCKETT
PTa.M.Bi uui GOTMtal SbIm A#iMt
RICHMOND. VIRGINIA
B. H. Randolph
Eaitern Salea Agent
Aaetican Nat’l Bank Bldg.
Mention The Black Diamond when writing advertiser*.
20
THE BLACK DIAMOND
[December 25
THE PHILADELPHIA & READING CDAL AND IRDN COMPANY
Miners and Shippers of
Hard White Ash
Free Burning White Ash Shamokin Red Ash Lorberry Lykens Valley
EVERY TON A CONDENSED SUPPLY OF INTENSE HEAT
North Franklin
NO SMOKE
PROMPT DELIVERIES
ANNUAL CAPACITY 14,000,000 TONS
NEW YORK — Frank Oberrender, Sales Agent, 143 Liberty St.
BOSTON — Thos. M. Richards, Gen’l Eastern Agent, 141 Milk St.
BUFFALO — D. L. Tuttle, Sales Agent, Prudential Building
PHILADELPHIA ) Coughlin. City and Southern
Reading Terminal J ^aSn sf Smith, Line Sales Agent
BALTIMORE — T. W. Claggett, Agent, Calvert Budding
READING — J. H. Wily, Agent, Second National Bank Bldg.
CHICAGO — J. H. M. Claggett, Resident Manager, Old Colony Bldg.
MILWAUKEE — E. T. McDonald, Sales Agent, 704 Majestic Bldg.
MINNEAPOLIS — J. H. Sessions, N. W. Sales Agent, Minneapolis,
Minn.
ST. PAUL — F. L. Gregory, Agent, Grand Opera House Bldg.
ROCHESTER — L. Treman, General Northern Sales Agent,
(Western New York and Canada)
WASHINGTON — J. A. Lounsbury, Agent, 308 Ouray Budding
Robert J. Montgomery, General Coal Agent
GENERAL OFFICES:
READING TERMINAL, PHILADELPHIA>^A^^<^^
l<l REAPING I«"l
Do You Wish to Have a Photograph of Your Mine or Dock ?
WE make a specialty of mine and dock pictures. Satisfactory undergroimd
photographs cannot be secured by the ordinary photographer. The Black
Diamond’s operator has taken hundreds of underground views, thereby acquiring
experience which permits us to guarantee satisfaction in this line of work.
For Terms Address
THE BLACK DIAMOND
MANHATTAN BLDG., CHICAGO
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
21
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PITTSBURGH
COAL COMPANY
Producers of the Highest Grade of
Pittsburgh Steam Coal
Youghiogheny
- AND -
Westmoreland Gas Coal
Daily Production 106,000 Tons
GENERAL OFFICES
HENRY W. OLIVER BLDG., PITTSBURGH, PA.
Hew Tork, N. T.
Buffalo, n. Y.
CIoTeland, Ohio
Detroit, Mich.
Chicago, ni.
Erie, Pa.
Youagstowa, Ohio
Akroa, Ohio
■ ISTRICT OFFICES
Toronto, Canada
Duluth, Minn.
Superior, Wis.
St. Paul, Minn.
Minneapolis, Minn.
Winnipeg, Manitoba
Cincinnati, Ohio
Louisrille, Ky.
DeKoyen, Ky.
Paducah, Ky.
Cairo, Ill.
Memphis, Tenn.
Natchez, Miss.
Vicksburg, Miss.
Baton Rouge, La.
New Orleans, La.
f
y
z
THE
Carbon Fuel Company
TRACTION BUILDING, CINCINNATI
Miners and Distributers of
Carbon Coal
The best of all Domestic Coals. Greatest heat value.
Lowest in ash and sulphur. Positively non-clinkering.
Perfectly screened in all sizes by the latest improved shaker
screens and carefully loaded by conveyor booms.
Carbon Coal is unequalled for brick, tile and pottery kilns
and for malleable purposes.
Carbon Gas and Steam Coal
unsurpassed for general steam purposes, producer gas and by¬
product coking.
Mines on Cabin Creek, Kanawha County, West Virginia, on
Chesapeake & Ohio Railway.
Capacity, two million tons annually.
Sunday Creek Coal Co.
Producers of
SMITHERS CREEK GAS and SPLINT
SUNDAY CREEK HOCKING
KANAWHA WHITE ASH SPLINT
General Offices: Columbus, Ohio
J. S. Jones, Pres. Jno. H. Winder, Gen. Mgr. P, A. Coen, Gen. Sales Agent
Jones & Adams Coal Company The Sunday Creek Coal Co. of Wisconsin
Western Sales Agents, Chicago, Ill. Northwestern Sales Agents, St. Paul, Minn.
Docks: DULUTH SUPERIOR MILWAUKEE
The Pyrollte Combination
LOW ASH - - HIGH B. T. U's
The BEST FOR COLD WEATHER
THOMSON & BURTON CO.
625 Home Insurance Bldg. CHICAGO
Mention The Black Diamond when writing advertisers.
22
THE BLACK DIAMOND.
[December 25
I • • • ■ ■ I
.V^AV.V.V^A>
I
5
None Better Than
Rend Franklin County Coal
The successful dealer places his order with the company
that will give him
Quality
Preparation
and Service
Buy Rend Coal and get a guarantee from the oldest soft
coal producing company in the United States.
Write or wire at our expense for prices.
W. P. REND & COMPANY
601 McCormick Bldg. CHICAGO
§
i
5
.V.V.V.V-V.V.V.V.V-Vm'.W.V.V.V.V.V.V.V.V~V.V.'.V.V.'.
TRADE
WINIFREDE COAL
MARK
WINIFREDE LUMP — Big and Blocky. Stocks like cannel.
WINIFREDE WASHED EGG AND NUT — Washed, Sprayed, Shaker
Screened. An ideal domestic coal for cook stoves and ranges; and
unexcelled for gas producing purposes.
WINIFREDE WASHED PEA — The cleanest pea on the market, un¬
equalled for generation of steam and particularly adapted for
underfeed furnaces and automatic stokers.
DPI lUIOMT OOAI These mines ara opsratad by the
WINIFREDE COAL COMPANY
BELMONT LUMP — 3^ -inch preparation. Especially prepared, hard
and chunky, a good stocker, and holds fire overnight.
BELMONT MINE RUN — Both Splint and Gas. Less than 1% sulphur,
a good steam and gas producer.
We are the EXCLUSIVE miners and shippers of these celebrated coals.
Mines at Winifrede and Crown Hill, Kanawha County, W. Va.
WINIFREDE COAL COMPANY
^'^Q°ENEIIAk. OFFICES C I N C I N NATI CKn!^MOIiT AND VnEAS.
AVUCH HOTTER AND CLEANER
A Broad Statement
Th ere is no coal mined in
the United States containing
less sulphur than ZEIGLER.
It is free from impurities.
BELL & ZOLLER
COAL COMPANY
Fisher Building CHICAGO
miTHERS CReek
lllllllll
West Virginia Gas Coal
For Steam Making
You know that West Virginia Gas Coals
stand supreme as steam makers. But there
is a difference in West Virginia Gas Coals.
Only when you orderOliveSmithersCreek do
you get all you expect and a great deal more.
The Olive Smithers Creek trade name is
your guarantee of quality, preparation and
service. Make a memo of this fact now.
The Columbus Iron and Steel Co.
COLUMBUS, OHIO
Mines on Smithers Creek, at Marting, Fayette Co., West Virginia
The Chesapeake 8i Ohio Coal & Coke Company
COLLIERY OWNERS AND EXCLUSIVE SHIPPERS OF THE CELEBRATED
ADMIRALTY NEW RIVER Smokeless Coal
“WELDING BRAND** SMITHING COAL
CANDO SPLINT AND GAS COAL
From New River. Kaoawba and Pocahontaa Fields of Weat Virginia
ADMIRALTY 2^x1" NUT
INQUIRIES SOLICITED
Q
3MIRALT
srv'iontzi-css
. oo>vi^ ^
'Ar
OVER SHAKER SCREENS
OPEN OR BOX CARS
CANNEL COAL— Mines on C & O. Ry., Virginian Ry., N. & W. Ry.— COKE
EXECUTIVE and MAIN OPERATING OFFICE
120 Broadway
New York City
TIDEWATER OFFICE
Board of Trade Bldg.
Norfolk. Va.
WESTERN OFFICE
First Nat. Bk. Bldg.
Cincinnati, Ohio
SHIPPING OFFICES
Sun. W. Va.
Handley, W. Va.
BRANCH OFFICES AND AGENCIES
Chicago Boston Newport News
St. Louis Richmond London, Eng.
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
23
iiiiiiiiiiiiiiimiiiiuiiiiiiiiiiiDiiii
Pocahontas& Jellico Coal Co.
HIGH GRADE
STEAM
AND
DOMESTIC
COAL
POJELCO
KENTUCKY
BLOCK
Mines in Kentucky and West Virginia
Write us for information and quotations
100 Neave Building
Cincinnati, Ohio
iiiiiiiiiii
“WEYANOKE”
Genuine No. 3 Vein Pocahontas
Smokeless
The Coal of Quality
“MALGO BLOCK”
The Coal That Always Makes Good
“JUMBO BLOCK”
A High Grade West Va. Coal. Low in
Ash, High in Fixed Carbon
“WHITE STAR”
West Virginia Splint
High in Fixed Carbon, Low in Ash,
Economical
“ELLEN BLOCK”
Once Tried Always Used
“ANTHRACITE”
Quality Second to None
Pocahontas Building
► 1.
THE S. J. PATTERSON COMPANY
Dayton, Ohio
THE BLUE ASH
COAL COMPANY
Incorporated
First National Bank Bldg., Cincinnati, Ohio
Miners and Shippers
WEST VIRGINIA AND
KENTUCKY COALS
Th e best low ash and no soot
coals that the market affords in
BLOCK, EGG or NUT SIZES
We are equipped to load box cars
Naugatuck White Ash, Kentucky Red Ash
Grey Eagle, Marwen and Pocahontas Coals
Preparation and Quality Unexcelled
Reliable
Invaluable
Indispensable
The Laws of Business
For all the
States and Terri¬
tories of the Union
By Theophilus Parsons, LL.D., late Professor of Law in Harvard University, and author of standard treatises on the law of Contracts, on Mercantile Law, etc., etc.
Thoroughly Revised as to Abstracts of all State and Territorial Laws relat- Several valuable practical new chapters added, on Stockholders, Officers and
ing to Collection of Debts, Usury, Execution and Acknowledgment of Deeds, Wit- Directors of Corporations, Employers' Liability, Bailment, Food and Drug Law,
nesses to Wills, Holidays and Days of Grace, Mechanics' Liens, Statute of LimitOr- etc., with a Complete Glossary of Law Terms, making a large octavo volume of
tions. Chattel Mortgages.
In (his work a (treat lawyer
spared no effort to
946 pages complete with table of contents, general index and index to forms.
make It A Safe Guide in Every Business Question In any State of the Union
Appended is a list of some of the more important matters treated in the boo\:
Contracts — Rules of Construction; How errors
affect; Effect of custom or usage; How inter¬
preted and proved; Written; Receipts for money.
Sales — What constitutes a sale with warranty; De¬
livery and its incidents; Void for illegality or
fraud; The sale of one’s business.
Agency-;-Relation of principal and agent; Authority,
how given, extent and duration; How Revoked;
Liability of an agent; Mutual rights and duties, etc.
Bailment — Responsibility for goods under repair,
on storage , etc
Agreement and Assent— Meaning of ; Mistakes, how
corrected; Annulment by fraud; Time offers; Bar¬
gains by correspondence; How affected by custom,
etc.
Stoppage in Transitu — ^When goods may be
stopped; Notice, how given, ete.
Consideration — Need of ; SufiBcient; Illega ; When
impossible; Failure of, etc.
Limitations — Statute of and its construction; The
new promise; Part payment; Statutory excep¬
tions ; How collateral security is affected, etc .
Partnership — How formed ; How dissolved ; Property
of : Several authority and liability of partners ; Rem¬
edies against each other ; P ights of creditors ; Forms.
Corporation Membership and Management —
Rights and risks of Stockholders; Powers and ob¬
ligations of OflScers; Of Directors.
Employers’ Liability — Rights and limitations of
Employees in case of accident.
Notes and Bills of Exchange — Drafts and Checks;
Negotiable paper; Acceptance and Indorsement;
Notes secured by mortgage; Mistakes; Peri or
pencil; Chattel Notes; Delays of presenting;
Death of a Drawer; Forged Checks; Accommo-*
dation paper; Law of Place; Value Received;
Consideration; Protest and Notice, etc.
Executors and Administrators — Powers and
duties; To order debts paid, etc.
Leases — Definition; Rights and obligations of par¬
ties, Fixtures, etc.
Interest and Usury — When interest is due; Legal '
interest; What is Usury; Charge for Risk or
Service; Discounts; Sale of Notes; Compound
Interest.
Carriage of Goods and Passengers — Common car-
Carrier’s liability; Obligation of carrier; Lia- ‘
Fire and Life Insurance — Usual forms; construc¬
tion of policies: interest of insured; Risk incurred;
Valuation; Notice and proof; Adjustment and
loss, etc.
Collection of Debts — Means provided; Trustee
process; What is protected.
Also nearly 300 approved forms, tested in the
courts, of the greatest value to business men and
property owners; for Contracts, Mortgages, Deeds,
Bonds, Leases, Sales, Receipts and Releases, Part¬
nership, Liens, Insurance, Guaranty, Powers of
Attorney, Assignments, Apprentices, Arbitration,
Notes, Patents, Protest, Shipping, Wills, etc.
It contains, among many others, chapters on Com¬
mercial Law in general; Infants or Minors; Ap¬
prentices; Bailment; Private and Corporate Part¬
nership; Employers' Liability; Bonds; Assign¬
ments: Guaranty; Statute of Frauds; Receipts and
Releases; Payment; Arbitration; Patents; New
(/pop) Copyright Law; Statute of Limitations;
Law of Place; Shipping; Fire, Marine and Life
Insurance; Deeds, Mortgages; Liens of Mechanics
and Material Men; Recovery of Debts; Wills;
Guardians.
9x6}^ inches
rier; . ,
bility for goods carried by passengers.
v^uosuii. M. iirsuus uckure kucurrin^ Le^al Responsibilities in^ one what NOT to do — The indispens-
ablecompanionof every oneittbusinesa, every one who plptfr business, every one bable to need knowledge about business: every one who holds property or may wish to; thatis, all the world.
Would You Know Without a Heavy Fee
Your rights under Patents, Trade-Marks or Copyright? How binding a contract you can make with a minor? What constitutes one pereoii an agent for another?
What a partnership obligates one for? • . What is a valid will, promissory note, business agree- • . What are the statutes of lunitations on claims or debts? Ag.!.
What one can claim from or as a common carrier? Ask ment, consideration of a bargain, condition of a ASK What will invalidate your fire or life insurance?
What liens of mechanics and material men take first bond, sale of property, and how to word one to pre- How you can or cannot collect a debt? Parsons
-1—’ ^arsons . — rnrsons How to act legally in a hundred common transactions
placer vent its being waste paper? rlow to ac
What you can enforce as a landlord or force as a tenant? What sort of promise holds one for a surety? of life?
A Quick Reference Book on Thousands of Law Points
Adapted for use by and already in the hands of over 230,000 business Know how to write contracts, agreements, deeds, mortgages, judgments, leases, wills, etc.,
men of all classes — Merchants, Manufacturers, Bankers, Brokers, Lawyers, or how to act as arbitrator, administrator, executor, guardian or trustee, etc. The book
Real Estate and Insurance Men, Magistrates, Notaries, etc., etc. contains 946 pages and is bound in Iaw Canvas^ a Genuine Buckram Binding, Price $4.00
The Black Diamond Publishing Co.,
Manhattan Building, Chicago
Mention The Black Diamond when writing advertisers.
24
THE BLACK DIAMOND.
[December 25
••
The Delaware, Lackawanna & Western Coal Co.
SOLE VENDERS OF
J. F. BERMINGHAM, President.
120 Broadway, New York.
D. E. RUSSELL, Vice-Pres. and Gen. Sales Agent,
Buffalo, New York.
J. H. ABBOTT, Tidewater Sales Agent,
120 Broadway, New York.
S. G. MEMORY, Line Sales Agent,
Broad and Market, Newark, N. J.
H. A. SMITH, Assistant Line Sales Agent,
Traders National Bank Bldg., Scranton, Pa.
D. N. ROTHERMEL, Salesman,
22 Barnes Street, Providence, R. I.
JOHN J. TOWN, Sales Agent,
64 Martin Building, Utica, N. Y.
G. W. McEATHRON, Sales Agent,
1620 W. Fayette Street, Syracuse, N. Y.
OGDENSBURG COAL & TOWING CO., Sales Agents,
134 McCord St., Montreal, Que.
E. H. READ, Sales Agent, 924 Prudential Bldg., Buffalo, N. Y.
W. B. PALMER, Sales Agent, Penobscot Building, Detroit, Mich.
D. D. SCHENCK, Sales Agent, 408 Superior Street, Toledo, O.
THE S. C. SCHENCK CO., Sales Agent,
Old Colony Building, Chicago, Ill.
E. L. HEDSTROM & CO., Sales Agents,
Marquette Building, Chicago, Ill.
MILWAUKEE-WESTERN FUEL CO., Sales Agents,
14 Grand Avenue, Milwaukee, Wis.
NORTH WESTERN FUEL CO., Sales Agents,
Merchants National Bank Bldg., St. Paul, Minn.
Duluth, Minn. Superior, Wis.
1 Broadway,
NBW YORK
Commercial Trust Building
PHILADELPHIA, PA.
Staples Coal Co., Agents
40 Central St.
BOSTON, MASS.
Peoples Oaa Building,
CHICAGO
Bor'W'ln.d.-'Wlii'to Ooal JVIlningj Oo.
MIRERS AND SHIPPERS OF THE
EUREKA BITUMINOUS COAL
Berwind’s New River and Pocahontas Smokeless Coal
An Unexcelled Fuel for Steamships and Locomotives, Manufactories, Rolling Mills, Glass Works,
Brick and Lime Burning, Coke, and for the Manufacture of Steel, Iron, etc.
SHIPPING WHARVES
Philadelphia
Greenwich Point
Newport News and Norfolk, Va.
Baltimore: Canton Piers
New York: Eureka Pier
Harsimus (Sixth Street)
Jersey City, H. J.
Duluth, Minn.
Superier, Wiaoonsin
PHILADELPHIA NEW YORK BOSTON PITTSBURGH BUFFALO ALTOONA MAUCH CHUNK
WHITNEY KEMMERER
SHIPPERS high grade anthracite and BITUMINOUS
Shipments to All Points, Either Tidewater, Lake or All Rail 143 Liberty Street, NEW YORK
CHARLES 8. PHILLIPS CHARLES P. HUNT
HINRY H. ASHLEY GEORGE A. MelLROY
Parrish, Phillips & Co.
SHIPPERS OF
Parrish Coal Co.’s Coal, Lehigh & Wilkes-Barre Coal
Co.’s Wilkes-Barre, Plymouth and Honey Brook
Distributors of Lehigh Coal & Navigation Co.’s Steam
Coals, also Georges Creek, Cumberland and
Clearfield Coal
No. 1 BROADWAY - NEW YORK
COALS for BUNKER and EXPORT
NEW RIVER SMOKELESS
South Fork Miller Vein
and
Somerset County Smokeless
VERNON METAL & PRODUCE CO., Inc.
HUGH L. KIRBY, Mgr.
COAL DEPARTMENT
90 West St., New York City
Phone Rector 4567 Cabla Addreac FREELOU, New York
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
25
WILLIAMS & PETERS
1 Broadway, New York.
PENNSYLVANIA COAL COMPANY’S
PITTSTON
ANTHRACITE
COAL
BRANCH OFFICES:
BITUMINOUS
E. O. SCHERMERHORN, Eastern Sales Agent, 141 Milk Street, BOSTON, MASS.
WILLIAMS, WELLS & CO., 39 Church Street, NEW HAVEN, CONN.
W. T. ROBERTS, Western Sales Agent, 1112 Prudential Building, BUFFALO, N. Y.
F. N. PEASE, Southwestern Sales Agent, 203 S. Dearborn Street, CHICAOO, ILL.
The Skeele Coal Co.
SALES AGENTS FOR — LEHIGH COAL Ss
NAVIGATION CO.’S well known Anthracite Coal
for Canada and the West, via Buffalo.
ALSO SHIPPERS Bituminous, Steam, Gas and
Forge Coals,
The Skeele Coal Co.
General Office : 90 West Street, NEW YORK
Marine National Bank Bldg. 1100 Old Colony Bldg.
BUFFALO, N. Y. CHICAGO, ILL.
86 Deronshire St., BOSTON, MASS.
M. BAXTER, Jr., President D. SINCLAIR, Gen’l Mgr.
New Central Coal Company
Big Vein Georges Creek Cumberland Coal
Pittsburgh Seam Gas and Steam Coal
R«*ma 304-5.6. 17 Baltcrr riaee .... IVE^'W' YORK
Shipments from Baltimore, Philadelphia and New York, and all rail
CHARCOAL
WHOLESALE— RETAIL
Bulk — Gunny Sacks — Paper Bags
We also manufacture the prepared sizes In Bags and Cartona
CENTURY FUEL CO., 328 W. 37th St., Chicago, III.
Dickson & Eddy
Scranton Coal Co.’s
COAL
DICKSON & EDDY
17 Battery Place - NEW YORK
Branch Officci:
BOSTON, MASS.
BUFFALO, NEW YORK
UTICA, NEW YORK
NEW HAVEN, CONN.
Mention The Black Diamond when writing advertisers.
Illlllllllllll
26
THE BLACK DIAMOND.
[December 25
1
.EHIGH VALLEY
r
COAL SALES CG
1.
COAL AND COAL
There is a big difference.
Experienced buyers and sellers of coal — men who have experimented and compared results — generally recognize anthracite as the
coal that will give unfailing satisfaction and the greatest economy. Among a goodly proportion of these men the recognized “one best
buy and sell” is
LEHIGH VALLEY
ANTHRACITE
The Coal That Satisfies
Its carbon richness is the secret of its strong, steady heat-making power. Its careful preparation is the reason why you will find so
little oreign matter in it.
LEHIGH VALLEY COAL SALES CO.
90 West Street, New York City
Boston Philadelphia Allentown Syracuse Chicago Buffalo
Cleveland Detroit Newark Minneapolis Milwaukee Rochester
LEHIGH VALLEY
COAL SALES CO.
FREDERIC A.
ANTHRACITE
General Office
143 LibertylSt
New York
POTTS & COMPANY
COAL BITUMINOUS
Charles J. Maclean,
New England Agent
Salem, Mass.
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WESTMORELAND- CONNELLS VILLE I
COAL AND COKE COMPANY |
= MINERS AND SHIPPERS =
I Semi-Volatile Bituminous Coal |
I HIGH IN BRITISH THERMAL UNITS I
= HIGH FUSING POINT OF ASH =
= WILL NOT CLINKER =
S PREPARED BY MOST MODERN METHODS =
I General Offices, Frick Building, - PITTSBURGH, PA. |
^iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiF
- n
The Jones & Adams
Coal Company
Scranton Anthracite
Pocahontas
Rich Valley Splint
Jackson Hill (Ohio)
Kanawha Splint
Smithers Creek Gas
and Splint
Kentucky Blue Grass
Peerless (Sangamon
County, Ill.)
Franklin Co., Ill.
Linton Fourth Vein
Indiana
Brazil Block(Indiana)
Producers and shippers of
COAL AND COKE
Steger Building
Chicago
Jefferson Building
Peoria, Ill.
Traction Terminal Bldg.
Indianapolis, Ind.
Mention The Black Diamond when writing advertisers.
I Quality, Not Quanity I
I is the policy that (dom- |
I inates the producers of 1
Logan Coal
The idea back of the pro- |
duction of Logan coal is !
preparation. We abso- |
lutely guarantee the f
preparationof Logancoal. |
The Logan Coal we send |
you will be prepared as |
well as any coal in Frank- |
lin County. And it |
will be prepared better j
than a great many coals f
coming from that famous |
field. j
Mined and sold by f
The John A. Logan Coal Company
Old Colony Bldg., Chicago
Phone Harrison 8217 Robert L. Green, Manager of Sales |
W. J. Carney, Pres- John P. Harding, Vice-Pres. J. Joseph Wright, Sec’y and Treas. \
. . . . .
General John A. Logan
No. 26]
THE BLACK DIAMOND
27
The Hocking Valley Coal Trade.
Columbus, Ohio, December 23. — {Special Cor¬
respondence.) — A. continued steady market de¬
void of any strong pressure upon shippers marks
the domestic trade. Absence of car shortage or
extreme weather conditions that would hinder
transportation has so far permitted of such a
free movement of coal that dealers are inclined
to be easy-going. Mines are able to keep run¬
ning. Reports from the thin-vein district of the
general Hocking field show a good stage of
activity under physical handicaps that do not
apply to the Hocking region proper. Fine coal
is scarce on a strengthening price. Shippers look
for growing demand on all steam sizes after the
first of the year in view of wage-scale agitation.
• Prices corrected up to Thursday are :
Hocking Valley —
3-inch lump .
J^-inch lump .
Egg .
Mine run .
Nut,, pea and slack
Coarse slack .
F. O. B.
Columbus
$2.20
1.95
1.60
1.75@1.80
1.55@1.60
1.40@1.50
F. O. B.
Mines.
$1.60
1.35
1.00
1.15@1.25
.95@1.00
.80@ .85
Washed Coals —
Egg .
Stove .
2.35 1.75
2.20 1.60
Some of the large Pomeroy producers have
their men off the road and are making an effort
to clean up on business contracted for under
existing prices, in the belief that the market will
take an upward turn in January. Following are
prices to date :
F. O. B. F. O. B.
Pomeroy — Columbus. Mines.
3-inch lump . $ 2.40 $ 1.75
2-inch lump . 2.25@2.30 1.60@1.65
Mine run . 1.76@1.80
Nut, pea and slack . 1.50@1.60 .85@ .95
Nut, pea and slack . 1.35@1.45 .70@ .80
Splint coals show no increased strength, but
are about holding their own, both on lump and
screenings. Results from what appears to be
favorable weather are somewhat disappointing in
not bringing about a stronger demand. The car
shortage in some of the fields are not affecting
deliveries to any extent here. Prices are :
F. O. B. F. p. B.
West Virginia Splint — Columbus. Mines
2*incb lump . ^.36@2.40 $1.40@1.50
^-inch lump . 2-25 1.30
Mine run . 1.80@1.90 .85@ .95
Low ash nut, pea and slack . 1.65@1.75 .70@ .80
High ash nut, pea and slack.... 1.60@1.70 .65@ .75
In fancy domestics there is more or less uncer¬
tainty about equipment. Hoppers are strong in
the East, and the unusual condition of shippers
being compelled to substitute flats on westward
tonnage, where hoppers had been ordered, has
come about during the past week. Prices are
firm, but with no immediate prospects of advance.
Latest quotations are:
F. 0. B.
F. 0. B.
White Ash —
3-inch lump .
2-inch lump .
Columbus.
_ 2.65
Mines.
$1.85
1.66
1.25
Red Ash—
_ 2.80
1.90
Egg .
Screenings .
1.60
Open
Smokeless coals, while recovered somewhat
from the recent slump due to Eastern embargoes,
are not commanding full circular. Lump and
egg is moving at from $2.00 to $2.15 in this mar¬
ket, with $1.35 as the maximum for mine run.
As the season advances it develops that the
Columbus retail market has been hurt more than
was anticipated by the natural gas campaign of
the past nine months. Prices are steady, but
volumn of tonnage is not normal under present
weather conditions. Hocking is still selling for
$3.50 and West Virginia lump at $3.75.
Columbus News Notes.
R. D. Jeffers, of the Litz Smith Coal Company,
Cincinnati, was one of the week’s visitors.
W. J. McGee, of the Carbon Coal Company,
Cincinnati, was in town on Friday last.
Harry Haywood, of the firm of W. A. Gosline
& Co., Toledo, was here last week calling upon
coal friends.
William Lawson, salesman for the Lorain Coal
& Dock Company, stationed at Cleveland, paid a
recent visit to headquarters here.
Maury Robinson, western sales manager of the
Davis Colliery Company, spent a couple of days
in Indianapolis the present week.
C. J. Andrews, former sales manager for the
Sunday Creek Company, but now of Morgan,
Andrews & Co., Detroit, was in Columbus on
the 15th.
W. J. Hamilton, of the W. J. Hamilton Coal &
Coke Company, was at South Bend, Ind., on the
21st, attending the wedding of his brother, Don
Hamilton, a young attorney of Columbus.
James Pritchard, secretary of the Hocking Val¬
ley Operators’ Association, is in the field as a
candidate for the position held by John M. Roan
as chief deputy and safety commissioner of the
state mining department.
Though idle in the blocking valley, awaiting
freight-rate and labor developments, the Sunday
Creek Company is pushing operations in West
Virginia. Of its eight mines there only one is
still inactive.
As part of a vigorous campaign being urged by
Safety Commissioner Roan, of the state mining
department, to cure carelessness of employes at
mines, a pamphlet has been issued in all lan¬
guages spoken at Ohio mines, and containing
excerpts of the mining laws. Mr. Roan insists
that there can be no safety-first without discipline.
Officials of the Hocking sub-district state that
nearly $60,000 in benefits have been paid within
the past few weeks to miners of the Sunday
Creek Coal Company, whose mines have been
shut down all season. Some 2,000 men are on
the relief list. Christmas donations have been
made by some of the mining centers of the state.
The New Pittsburgh Coal Company has filed
with the Utilities Commission informal notice of
protest against the proposed new tariff for the
Hocking Valley Railroad on coal rates from Nel-
sonville to Toledo. It claims that the rate of $1
to which the railroad seeks to return is dis¬
criminatory, unreasonably high and relatively
higher than rates of competing roads.
C. M. Anderson, western sales manager of the
Elk River Coal & Lumber Company, is a member
of the non-resident membership committee of the
Athletic Club, which in January will open its new
half-million-dollar home. Coal men residing out
of the city who desire membership should com¬
municate with Mr. Anderson. A number of such
have already become affiliated. The coal men
will have a separate table in the dining room of
the club, and it is expected to make this a popular
feature with the trade. The club house will have
eighty sleeping rooms.
Brazil’s Purchase of Foreign Coal.
[Consul General A. L. M. Gottschalk, Rio de Janeiro,
October, 19.]
American participation in the coal trade of
Brazil since the beginning of the present Eu¬
ropean war is disclosed by the following table,
made up from statistics gathered at the vari¬
ous ports of this republic:
MiETRIC TONS.
Months, 1914 —
From
Total
United States.
Imports.
August .
100,139
September .
116,910
October .
100,546
November .
. 25,277
82,539
December .
1915 —
. 19,620
104,368
January .
. 19,360
89,261
r ebruary .
. 17,073
61,495
March .
90,156
April .
. 34,141
115,450
May .
. 61,428
128,816
Tune .
111,579
July .
126,139
August .
. 89,576
118,749
Total .
. 561,150
1,346,147
Of the imports during the thirteen months
under review Rio de Janeiro took 918,795 tons,
Santos 131,895, Pernambuco 94,241, Bahia 58,-
070, Para 45,793, and Rio Grande 44,902 tons.
We are always pleased to receive inquiries
on Hocking, Pomeroy, West Virginia and
Kentucky steam and domestic coal.
The Seidenfeld-Hammond Coal Company
Murray, Ohio
NEW YORK COAL COMPANY
COLUMBUS, OHIO
Miners and Shippers of Specially
Prepared Domestic Coals
Also Manhattan Washed Coals
THE PEACOCK COAL CO.
Sole operators of
Genuine Peacock Pomeroy Coal
Capacity, 3,000 tons dally
Harrison Building Columbus, Ohio
The Gibson-Spence-Coal Co.
Producers and Shippers
“Banner” Hocking “Blue Ridg'e” White Ash
“Valley” Cambridge . “Pine Mountain” Kentucky
Anthraiclte — Pocahontas — Smithing
Cols Savings 6 Trust Building - Columbus, Ohio •
SUNDAY CREEK
COAL COMPANY
Outleok Building, Columbus, Ohio
PEALE, PEACOCK
REMBRANDT PEALE, President
H. W. HENRY, Vice-President and Traffic
Manager
Wm. B. OAKES, Treasurer
GRAND CENTRAL TERMINAL ^
NEW YORK
BITUMINOUS
V I C TOR
E. E. WALLING, Vice-President
NORTH AMERICAN BLDG.,
PHILADELPHIA, PA.
COAL
u.s. patent
& KERR
NEW YORK
ANTHRACITE
COAL
GAS COAL
and COKE
Mention The Black EhAMOND when writing advertisers.
28
THE BLACK DIAMOND
[December 25
Rates on Coal and Coke.
Washington, D. C., December 22. —
The following rates have been filed with
ihe Interstate Commerce Commission
since the last report ;
C. R. N. P., Sup. 7 to ICC C97()l, Jan.
1, 1916. Lignite from Roswell, Colo.,
to Goodland, Ruleton, Kanorada, Las
Burlington, Bethunc, Stratton, Vona,
Seibert, Flagler, Arriba, Bovina and
Genoa, Colo., slack or pea, to
Cioodland, Ruleton & Kanoradom, Kas.,
mine run or nut, $1.60 per net ton (R).
Atchison, Topeka & Santa Fe, Sup. 21
to ICC 6363, Jan. 5, 1916. Coal, anthra¬
cite or soft, from Kennedy, Los Cerril-
los and Waldo, N, M., to Eagle Lake,
Garwood and Matagorda, $3.50 (R) ;
Weatherford, $3.35, and Beaumont,
Te.x., $3.50 per net ton.
Bangor-Aroostook, ICC 1113, Dec. 23.
Anthracite and bituminous coal from
Northern Maine Junction, Me., (ex Le¬
high Coal and Navigation Co.’s plant
to St. Leonard, N. B., $1.65 per gross
ton. From Stockton Harbor, Me. (Cape
Jellison, Kidders and Searsport (Me.),
to St. Leonard, N. B., bituminous coal,
$1.85 (R), and anthracite coal, $2.10 per
gross ton.
T. Sy. L. & W., ICC A729, Dec. 26.
Soft coal from Coffeen, Panama and
Sorento, 111., to Alton and Federal, 111.,
thirty-seve.n and one-half cents ( R ) per
net ton.
Fredericton & Grand Lake Coal &
Ry. Co., ICC 8, Cane. 7 RR 29. Coal
from Minto, N. B., to Calias, Me., $1.25;
Woodland, Me., $1.44 per net ton. De¬
cember 26 effective.
Erie, ICC A5355, Dec. 26. Coke from
Cleveland, O., stations to Buffalo, N.
$1.30 per net ton. i
Central Indiana, ICC 286, canc. 283,
Dec. 27. Coal, bituminous, from Brazil,
Bridgeton, Bryson, Caryon, East Rock¬
ville, Sundown, Superior and Walton,
Ind., to Chicago, Chicago Heights,
Englewood, Kensington, Momence, St.
Anne and Watseka, Ill., eighty-two cents
])er net ton.
Boston & Albany, ICC 7276, canc. 6504
RR 7500, Dec. 29. Coke from East
Boston, Everett, Mass., to Dover, Eliza¬
beth, Elizabethport, N. J., $2.50; Mah-
wah, $2.60; Newark, North Newark,
Passaic, Paterson and Trenton, N. J.,
$2.50 per net ton.
Penn.sylvania, Sup. 2 to ICC AA557.
Bituminous, briquettes and boulets, from
Phoenix, Md., to Sag Harbor, N. Y.,
$2.65 per gross ton (R), Dec. 31.
Philadelphia & Reading, Sup. 4 to
ICC J5224, Jan. 1, 1916. Petroleum
coke from Marcus, Hook and Chester,
Pa., to Jersey City, N. J., seventy-five
cents.
Missouri, Kansas & Texas, Sup. 4 to
ICC No. A4142, Jan. 1, 1916. Mine-run
coal from Fleming Mine and West Min¬
eral, Kan., to Bartlesville, Okla., fifty-
five cents per net ton (R). Slack coal,
fifty-five cents per net ton (R) from
Cherokee, Howe, Mulberry, Pittsburg,
Scammon and Weir, Kan., to Bartles¬
ville, Chanute, Dewey, Gas, Humboldt,
lola. La Harpe and Mildred, Kan.;
mine-run coal from same points to
Idenbro, Wilsonton, Hayden, Mound
Valley, Penfield, Angola, O’Herin, Cof-
feyville, Coverdale, Kan., South Coffey-
ville, Noxie, Wann, Wayside, Dewey
and Bartlesville, Okla., sixty-five cents
per net ton (R).
Chicago, Milwaukee & St. Paul, ICC
No. B3216, Jan. 1, 1916. Coal from
Port Angeles, Wash., to Earles, Wash.,
$1.50 per net ton; from Seattle, Wash.,
to Bayside, $1.75 per gross ton ; to
Earles, Wash., $2.50 per net ton.
Boston & Maine, ICC No. A1546, Jan.
5, 1916. Coke from Rotterdam Jet., N.
Y., to Archdale, Easton, Greenwich,
Middle Falls, Northumberland, So.
Cambridge, Thomson, Trionda, Vly
Summit and West Cambridge, N. Y.,
ninety-five cents per net ton. Coal from
Mechanicville, eighty-four cents; Rot¬
terdam Jet., ninety-five cents, and Troy,
N. Y., to eighty- four cents per gross
ton to Archdale, Easton, Greenwich,
Middle Falls, Ondawa and So. Cam¬
bridge, N. Y.
Baltimore & Ohio, ICC C&C Series
1123, Jan. 5, 1916. Coke to port Rich¬
mond (Philadelphia) Pa., from Con-
nellsville Region, all districts and
Klondike Region, all districts, $1.70;
from W. Va. Region, all districts ex¬
cept Gauley District, $1.70; Gauley Dis¬
trict, $1.90 per net ton.
Penn.sylvania R. R., *ICC No. AA718,
Jan. 6, 1916. Coke and coke breeze from
Steelton, Pa., to Baltimore, Md., and
Sparrow’s Point, Md., $1.00 per net ton
(R).
Elgin, Joliet and Eastern, Sup. 1 to
ICC No. 1543, Jan. 10, 1916. Petroleum
coke from Whiting, Ind., to Cleveland
(R), $1.90; Fremont and Fostoria,
(Jhio, $1.60 per net ton.
Missouri, Kansas & Texas, Sup. 2 to
ICC A4011, Jan. 15, 1916. Petroleum
coke from Coffey ville, Kas., to Council
Bluffs, Pa., Omaha, Fort Crook, La
Platte, Plattsmouth, Nebraska City,
Verdon, Falls City, Louisville, Dunbar,
$2.25; Lincoln, Hichman, Neb., $2.40 per
net ton (R).
(K) Indicates a reduction in rate.
(A) Indicates an advance in rate.
West Virginia Coal Charters.
Charters have been granted to the fol¬
lowing companies to operate in West
Virginia coal fields :
The Rex Coal & Coke Company of
Huntingdon, capital $100,000, with works
at Ethel, Logan county. The incorpora¬
tors are George S. Wallace, L. R. Reese,
J. W. Lawton, P. P. Gibson of Hunting-
ton and F. M. McClung of Ashland, Ky.
DEXTER & CARPENTER, INC.
10-12 BROADWAY, NEW YORK
ANTHRACITE )
BITUMINOUS ( ^OaiS
LLOYDELL PRINCESS
CLAIRE CROWN
and CROWN SMITHING
COKE
Branch Office: Land Title Bldg., Philadelphia
Continental Bldg., Baltimore, Md.
C.C. BOWMAN ANTHRACITE, COKE,
Miner and Shipper BITUMINOUS
“North Wilkes-Barre”
‘‘West Wyoming”
‘‘Lopez”
‘‘Big Vein Lehigh”
And other grades Anthracite
‘‘Perfection” Smithing
“Best” Gas
‘‘White Oak” Steam
And other gradee Bituminous,
Connellsville Coke, etc.
Address all communications to 119 William St.. Pittston. Pa. Anthracite shipments made
by rail or water via P. R. R.. P. & R. R. R., L. V. R. R.. and their connections
Sole Shipper
and
Mine Agent
Established 1884
Punxsutawney Coal Mining Co.
HARRY YATES. PreridenI
WALTER S. BLAISDELL. Sec'y-Treai.
Wm. C. Tail
General Sales Agent
BUFFALO. N.Y.
Frederic Landstreet
Genial Eattem Sale* Agent
Land Tide Buikting
PHILADELPHIA. PA.
THE FRANCES MINES
Mine Owners and Shippers of
BITUMINOUS
COAL
, Geoerai Office;
1442 Marine National Bank Bldg.
BUFFALO. N. Y.
Mines on the Buffalo,
Rochester and Pittsburgh
Railway, near
Purvesutarsne^, Pa.
SHIPPING PIERS:
Pi. Richmond, Phila., Pa.
Pt. Reading, N.Y. Harbor
WE
MINE AND
SELL GOOD
COAL
I Peabody Coal Company
■ General Offices:
I McCORMICK BUILDING
I CHICAGO
I St. Louis Mo. Office: Syndicate Trust Building
s
m
^liliilllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllUllllllllllllllilllllllllillllllilllllllllU^
We.4r •.
■ J
DELAWARE, LACKAWANNA & WESTERN COAL GOi’S
SCRANTON COAL
THE S. C. SCHENCK CO.. Sales
Two Large
Covered Docks.
Shipments
All Railroads.
Agents]
C. L. DERING,
Suit Coal Department ISLAND CREEK
When you buy “SCRANTON” be sure
West Virginia Splint
Manager Chicago Office
you 6et the GENUINE D., L. & W.
Rescreened at Sekitan elevator, Cincinnati.
...
- Old Colony Rnilding
Scranton.
Mention The Black Diamond when writing advertisers.
No. 26]
29
THE BLACK DIAMOND.
A. B. CURRIE COMPANY
JOBBERS OF
COAL AND COKE
AGENTS FOR PRODUCING COMPANIES
IN
Colorado, Wyoming, Illinois, Michigan
DISTRIBUTORS IN NEBRASKA
OF
Thorne, Neale & Company's
Anthracite Coals
From The
Pittston, Plymouth and Scranton Districts
CITY NATIONAL BANK BUILDING
OMAHA, NEBRASKA
BROTHERS VALLEY
COAL CO.
Miners and Shippers of
SMOKELESS
COAL
VOLATILE MATTER 16%
Unexcelled for Steam and Domestic Purposes
PAR EXCELLENCE SUMS UP IN A WORD THE RESULT OF THE
CAREFUL PREPARATION PEN-MAR LUMP, EGG & STOVE RECEIVES
OVEROUR MOST MODERN SHAKER SCREENS AND PICKING-TABLES
THESE SIZES ARE RESCREENED.
J. M. LEONARD, Sales Manager
W. E. McCauley, Resident Manager
Union Trust Building, Baltimore, Md.
W. A. LEIGH, Resident Manager
Old Colony Building, Chicago, Ill.
90 West Street, New York
December 2.'), 1915
CHICAGO, ILL.
Price; One Look
The Taylor Coal
Company, in wishing
you a Merry Christ¬
mas and a Prosperous
New Year, strives just
as energetically toward
the complete fulfill-
merit of that wish as
this concern energet¬
ically strives to increase
your profits by making you a perma¬
nent dealer in ENERGY CO.\L.
The past has been a most pleasant
and successful year for us. It has
been made even more satisfactory^
than that of former years, because in¬
creased sales and a greater tonnage
has demonstrated to ns that the re¬
lationship between this company and
its customers has been one of mutual
irrofit.
'I'o all those who have contributed
so much toward our success during
the past year, we hope that all of the
many favors have been instilled and
that the experience in each case has
been one that will warrant a con-
tinnatioii of patronage during IttltC
To those dealers who have not yet
given ENERGY CO.YL the trial we
conscientiously believe it deserves, we
hope that the coming year will offer
ns the opportunity of deiiioiistratiiig
the business-bringing, business-hold¬
ing qualities of this coal to yon.
We hope that the last has been the
most successful of all your years, and
that 191(i will prove even a better one.
- ENERGY -
HAPPY HOME HEATED
WITH ENERGY COAL
VVe are indebted to a user of
ENERGY CO.YL for the photograph
shown above. It is just one of hun¬
dreds of such photographs which
might he taken of happy homes heated
with ENERGY COAL.
The design and appearance of the
home evidences the character of the
owner — a careful, up-to-date and ju¬
dicious man. That this is the case is
proven by the fact that he buys and
linrns ENERIYS' CO.AL.
riie reader will see that a large fire¬
place adorns the house, and though
we are not positive, we are led to be¬
lieve that this fireplace will lend much
to the comfort and cheerfulness of the
room in which it is located with many
a warm and cozy fire of ENERGY
COAL.
- ENERGY -
L. W. McKown
Mr. L. \\\ McKown, who is rapidly
inishing ENERGY CCj.AL to the very
front rank in the 'I'ri-Cities and vi¬
cinity. desires to thank and express
his appreciation of the loyal support
Ii. W. McKown
given him by the trade in his territory
Since his new connection.
Mr. McKown has been with the
iaylor Goal Company for less than a
year, hut he has demonstrated beyond
doubt that a good salesman and a
good product make a team that can
obtain hig results quickly.
ENERGY
MOVING PICTURE SHOWS
ADVERTISING ENERGY COAL
Dealers handling ENERGY COAL
are finding the use of the lantern
slides furnished by the Taylor Coal
Company of much help in the profit¬
able advertising of their coal, business
and name to “movie” theater goers.
. These slides are novel and attrac¬
tive in appearance, and each bears the
dealers name. Pictures speaking all
languages, the slide and dealer’s name
IS brought to the mind of every per¬
son seeing one of these slides every
time he or she is in the market for
coal.
Dealers who would like to secure
these slides for similar purposes can
secure them upon request to any
ENERGY salesman or to the Taylor
Coal Company at Chicago.
ENERGY
“HOOS HOO” IN ENERGY COAL
1'.N1■.R(>^ (.GAL is mined in Wil¬
liamson comity, Illinois. It is clean,
washed, roller screened, sized and re¬
screened. It is free from impurities.
Shippeil in all domestic and steam
sizes over the 1. C. and Mo. I’ac
Railroads.
^ I' RANKLIN’ RNERG'i’ is mined in
Franklin County, 111. It is an ideal
one for steam and domestic imr-
posos. and is carefully jireparcd in all
.'team and domestic sizes. .Shipped
over the C. R. N- (j. and I. C. Rail¬
roads.
For prices and particulars write.
TAYLOR COAL CO.
Old Colony Bldg.
ChicagOt 111.
Miners and shippers of
“Energy*'and Frank¬
lin “Energy” Coal
Mention The Black Diamond when writing advertisers.
30
THE BLACK DIAMOND.
**The Coal Traders Accepted Want-ad Medium'
WANTED FOR SALE DEPARTMENT
The rmte for mdeertisemente under thie heading it four cents a teord per issue,
with a 20% discount from this rate for four or more consecutive insertions,
Repiies mailed direct or through our office. Ads received by phone at Chicago
until S F. M. Thursdmy^Harrison 1224.
COAL MINES FOR SALE
COAL MINE FOR LEASE— 1,200
acres; drift mine; fine gulch; six-foot
seam; 14,669 B. T. U.; sandstone roof;
electric power by meter; on river and
trunk railway. P. A. Reece, Johnston
building, Cincinnati, Ohio.
FOR SALE — 1,223 acres in fee, five
Kanawha splint seams. Railroad and
river frontage; $18,000 improve¬
ments on property; oil and gas indi¬
cations. Reasonable terms. Invite
inspection. Box 939, Charleston, W.
Va.
FOR SALE — 712 acres lease prop¬
erty. River and railroad frontage;
five seams Kanawha splint coals;
$13,000 improvement on property.
Invite inspection. Reasonable terms.
This is a bargain. Box 939, Charles¬
ton, W. Va.
FOR SALE— 8,000 to 15,000 acres
of coal lands, located in the south
central part of Illinois, six and one-
half to seven and one-half feet in
thickness and 385 feet below the sur¬
face. Good railroad facilities. Best
steam coal in Illinois. Address G. W.
Schmidt, Gillespie, Illinois.
FOR SALE — Minshall vein mine,
average five feet, fully equipped, good
top and conditions on the C. & E.
1. Railroad, with access to the Penn¬
sylvania Lines and New York Cen¬
tral; 609 acres more available; freight
rate to Chicago, 77c; Indianapolis,
50c. Address Box 676, The Black
Diamond.
FOR SALE — Operating mine ;
Pennsylvania Railroad; 1,200 acres
coal; present capacity 500 tons; can
easily be increased; fine grade of
coal; principal market. New York and
New England. , It has a good rate
for lake shipments. Price, $150,000;
to settle an estate. Thomas Ligg:ett,
1213 First National Bank building,
Pittsburgh, Pa.
FOR SALE— Six hundred fifty-
eight acres of coal land. Under 320
acres is Upper Freeport coal, measur¬
ing six feet, and under about 530 acres
Lower Freeport, measuring two to
three feet, and under the entire 658
acres is the vein variously named
“Miller,” “B” or “Lower Kittannmg,’
measuring three to four feet of coal.
There is about 250 acres of surface
and nearly a mile and a half frontage
on Pennsylvania Railroad and Con-
nemaugh river. This includes one
of the best manufacturing sites of
about fifty acres fronting on the
Pennsylvania Railroad. The Upper
Freeport is a drift mine, sixty feet
above the railroad at lowest point,
and produces good coking coal. The
Lower Freeport is opened as a drift
mine and shows good coal. The “B”
vein is reached by a slope or shaft and
is considered to be among the best
grades of coal in central Pennsylva¬
nia. The equipment of this property
consists of fifty-two coke ovens, sid¬
ings, chute, tipple, forty-nine wagons,
tracks, mules, twelve miner’s houses,
pumps, stables, shops and other
necessities. This tract is in group 5,
which bears lowest freight rate east
in Pittsburgh district. Analysis fur¬
nished on application. For further
details, price and terms, address
SOUTH SIDE TRUST COMPANY
OF PITTSBURGH, PA., trustee in
bankruptcy of Bolivar Coal & Coke
Company.
COAL MINES FOR SALE
41,000 ACRES CATTLE, fanning
and coal lands; producing coal dis¬
trict; oil and flowing artesian water
nearby; large free range, $4.25; also
land scrip. Hugo Seaberg, Raton,
N. M.
FOR SALE CHEAP TO CLOSE
AN ESTATE — 24,000 acres good coal
land, with a mine ready to operate,
power plant, mining machines, cars,
etc.; fourteen miles of standard and
narrow-gauge railroad, connecting
with the Southern Railway at Lime
Rock, Ala., sixty-five miles westerly
from Chattanooga; four locomotives,
cars; eighty dwellings and large com¬
missary. Much valuable hardwood
timber, with two good saw mills;
most of the land on Cumberland pla¬
teau suitable for agriculture when
cleared, and two improved farms; coal
known locally as Belmont Block, very
hard, high in volatile matter, contain¬
ing some cannel-coal (co-related to
Bon Air seam of Tennessee), excel¬
lent for domestic use. Low freight
rates and best of markets. For full
particulars, price and terms address
F. D. Pierce. Bridgeport. Ala.
COAL MINES WANTED
WANTED — To buy an interest in
a coal mine on the Louisville & Nasli-
ville Railroad in the Hazard district
of Kentucky, only those who have
facilities for caring for some western
trade considered. Address Box 736,
The Black Diamond.
MACHINERY FOR SALE
FOR SALE — One 22x48 Standard
girder frame Hamilton Corliss engine.
Write Box 515, Ottawa, 111.
FOR SALE — One reel, about 1,000
feet, grooved trolley wire. Nineteen
and one-half cents f. o. b. Dickinson,
W. Va. Address Quincy Coal Com¬
pany, Quincy, W. Va.
RAILS, MACHINERY AND
EQUIPMEi^T — Buy, sell or ex¬
change. Send list of what you have
for sale and advise of your require¬
ments. L. A. Green, 1514 First Na¬
tional Bank building, Pittsburgh, Pa.
FOR SALE — Two HD and one
low vein Morgan-Gardner mining
machines. One six or eight-ton Mor¬
gan-Gardner locomotive. Equipment
in good condition. Quincy Coal Co.,
Quincy, Kanawha County, W. Va.
FOR SALE — One Richardson auto¬
matic scale, 2,500 pounds capacity;
one Christy box car loader, fifty horse
power, both in perfect working con¬
dition. Smith-Lohr Coal Mining Co.,
Pana, Ill. _
FOR SALE — Heavy construction,
full housed mine fan, top horizontal
discharge, overhung ten foot diameter
wheel, complete with pedestal, thrust
and outboard bearings and fly wheel
pulley. Capacity 70,000 cubic feet
at 350 R. P. M. As good as new and
a bargain. Aluminum Ore Company,
East St. Louis, Ill.
LOCOMOTIVE FOR SALE— A
bargain — Gasoline Locomotive, in per¬
fect condition, ^Vhitcomb. 7 ton;
width. 63 inches; height, 43 inches;
length, 12 feet 8 inches. Gauge 42
inches. Cast iron wheels, steel tires,
one new set tires with locomotive.
Used one year, displaced by electric
installation. Cost new, $3,500. To
move quick, will sell for $1,750 com¬
plete, f. o. b. Fairmont & Cleveland
Coal Company, Fairmont, W. Va.
SITUATIONS WANTED
SITUATION WANTED — Offi«
man, fourteen years’ experience all
departments, operative and retail.
Familiar all details office and yards.
Box 749, The Black Diamond.
.WANTED — To represent, in west¬
ern Michigan on commission basis,
reliable operating company producing
Pocahontas an<l splint coals. Ad¬
dress Box 748, The Black Diamond.
MINE SUPERINTENDENT—
Thoroughly familiar with electrical
and modern methods. Twenty years’
practical experience general coal min¬
ing. Can produce results. Address
Box 733, The Black Diamond.
YOUNG MAN with broad and ex¬
tensive experience in development,
construction and operation of coal
mines. Employed as superintendent
of large concern at present. Can
handle any sort of proposition. Want
to change. References. Address Box
747, The Black Diamond.
SITUATION WANTED— One of
the best bituminous coal salesmen
traveling New York, New England
and Ontario; fifteen years’ command¬
ing large tonnage; desires a better
connection by Januarv 1st. Gilt edge
recommendations as to ability and
character. Address P. O. Box 760,
Buffalo, N. Y.
SALESMAN with ten years’ experi¬
ence traveling Ohio, Indiana and
Mich., familiar with sales manager’s
duties and possessing executive abil¬
ity, now employed with high-grade
coal company, will consider sales
manager’s position after January 1.
Would like to communicate with re¬
liable company. None others need
answer. Address 730, care of The
Black Diamond. .
POSITION W A N T E D— Twelve
years’ experience as sales and traffic
manager handling western and east¬
ern coal. Will locate in any locality.
Will accept traveling position if re¬
munerative. Age, thirty-five years.
Address Box 746, The Black Dia¬
mond.
MAPS OF CAMBRIA COUNTY,
PA., FOR SALE — Revised, up-to-date,
showing location of mines, coal areas
and basins, townships, railroads, etc.
Descriptive supplement with each
map gives the name of each mine,
township in which the mine is lo¬
cated, name of mining company, ad¬
dress, general superintendent and his
address, number of employees, seam,
thickness, kind of opening, shipping
railroad, average daily output for years
1912. ’13 and ’14. Inspection district and
further remarks. Map measures
about 40 inches square. Price com¬
plete, $2.00. Address Book Dept.,
The Black Diamond, Chicago, 111.
HELP WANTED
WANTED — Chicago city salesman,
familiar with steam trade, by operat¬
ing company. Give references. Ad¬
dress Box 706, The Black Diamond
WANTED — First class salesman
with established trade in western
Iowa by operator producing highest
quality Illinois coal. State experience
fully. All replies confidential. AT
dress Box 705, The Black Diamond.
WANTED — By southern Illinois
operator producing coal of first qual¬
ity, a salesman for Iowa; also one for
Illinois teritory. Will pay a salary
of $125 per month and commission.
A real opportunity for a man who
can sell coal. Address Box 742, The
Black Diamond.
BUSINESSOPPORTUNITY
“RARE BUSINESS OPPORTU¬
NITY” — Wanted, some capital in a
new mine just developing; 20-year
lease; best steam coal. One-third in¬
terest for $5,000. Address Box 745,
The Black Diamond.
FOR SALE — A complete and suc¬
cessful coal and feed business in a
town of 45,000, near Chicago. Low
freight rates. This business is well
established and will stand your in¬
vestigation. Address Box 738, The
Black Diamond.
FOR SALE — Coal yard, including
equipment coke buildings, lease of
ground; centrally located; splendid
opportunity for someone who wishes
to go into this business. For fur¬
ther information address Syndicate
Dry Goods Company, Indianapolis,
Ind.
WANTED — A practical coal op¬
erator with some capital to join with
me in a splendid coal stripping propo¬
sition in the No. 8 coal fields in east-
tern Ohio. I own the coal land, good
tipple, mine cars, railroad sidings,
houses, etc., but need some capital to
do the rest, but not a large amount.
Address J., Room 633, Fulton build¬
ing, Pittsburgh, Pa.
RAILS
FOR SALE — One carload each of
new forty and sixteen-pound steel
rail. Address Quincy Coal Company,
Quincy, W. Va.
MISCELLANEOUS
FOR SALE — Addressograph. We
have card index addressograph, good
as new; metal drawers holding 3,600
addresses. Will sell at half original
cost. The Maynard Coal Company,
Columbus, Ohio.
^HE Classified advertisements in The Black
Diamond, costing 4c per word, are prob¬
ably as eagerly scanned as any other part of
the paper. Advertisers desiring to get in
touch with the coal industry will find through
the use of these small announcements that
they readily accomplish their purpose.
Mention The Black Diamond when writing advertisers
No. 26]
THE BLACK DIAMOND
31
POMEROY & MARTIN
ATTORNEYS AND COUNSELORS
FISHER BUILDING
CHICAGO
Andrewa* Allen, C. E. John A. Garcia* E. M,
Allen & Garcia Co.
Consulting and Constructing Engineers
DESIGNING - SUPERINTENDENCE - CONSTRUCTION
Everythlne for a Coal Mine. Including Structures,
Mechanical and Electrical Installation,, Shaft
Sinking, Development and Operation
Examinations - Reports - Appraisals
McCormick Bldg. CHICAGO
HNS OLSON, Pns. INO. L HSHER, Sic’y
PUNXSUTAWNEY DRILLING & CONTRACTING
COMPANY
DIAMOND DRILL CONTRACTORS
TBSTINO BITUMINODS COAL LANDS A SPBOIALTT
PUNXSOTKWNEY, PL
MARSHALL HANEY
Consulting Mining Engineer
SEER, GREENE COUNTY, VA.
Examlna minLnc properties and furnish reliable
Information to Intending Investors, undertake
management and development of prospects and
mines. Pnrebasere eeonred for properties of an-
qaestloned merit.
Halit liasaiakle. CirrisiiMlMM liiltai.
aOOD PROPgRTIES FINANCED
ANALYSIS o/COAL
IS OUR SPECIALTY
Experience, Caie and Standardized
Equipment Mean Accurate Results
GULICK-HENDERSON CO.
Manhattan Buildini CHI C|A G O
Established 1894 Telephone Franlclia 1013
WM.*W. THOMPSON & CO.
Certified Public Accountants
927-931 Stock Exchange - - CHICAGO
Auditors and System Designers
I* A. T Pf TD S
United StatesandForeign
Trad* Mark* Racistarad
Neabit & Doolittle
Attornaja
7 It Park Buildlnff» PITTSBURGH, PA.
SHEPARD & HUTCHISON
Public Accountants and
Auditors
Both members of this firm being expe¬
rienced and practical coal accountants,
special attention is given to mining
costs, appraisals and systems, and to
retail costs and examinations.
1645 Old Colony Building
Phone Harrison 7572 Chicago, Ill.
H. H. Althous* H. W. Althou**
ENGINEERB— OEOLOGISTS
RAILROADS— COAL
Reports, eetlmatefl. surreys. Mina construction,
design, examination and Taluatlon: mining
geology. prospecting. Experience and opera¬
tions In middle, western and southern states
and Mexico.
WoelweMh Bulldlnt* New Yerk
Coal Briquetting Machinery
Capacities from 10 to 35 ton* of 2 ounce
Briquette* per hour. Complete plants
erected >nd guaranteed
NASHEK ENGINEERING CO.
80 West Street. New York
RATES FOR SPACE
Under Professional Directory
heading, $1.45 per inch per in¬
sertion.
FOR SALE-DYNAMOS & MOTORS
240 Volt Direct Current Generator*.
K.W. Speed
I 10 Crocker-Wheeler direct con. to Ideal
engine . 250
1 125 Alhs-Chalmers, 6-pole . 525
1 150 Western Elea., 6-po1e typ* L, 3-bearing 500
1 150 Willey, direction, to i-valve Atlas en*
gine . 225
1 240 Crocker-Wheeler, MP. direot-connected
to 15x28x36 in. cross compouad Vilter-
Corliss engine . 120
Send for our "Monthly Bargain Sheet," showing
net prices. We make a specialty of second-hand
electrical machinery overhauled "like new.”
Motors and generators rented. We will rent any
machine in our stock.
GREGORY ELECTRIC CO.
16th and Lincoln Sts. Chicago, III.
ROBINS CONVEYING MACHINERY
Our bulletins describe the successful solution of
many materials-handling problems. Write for
them.
ROBINS CONVEYING BELT COMPANY
New York, IS Park Row
Chicago. Old Colony Bldg. San Francisco, Th« Grltfin
Co. Spokane. United Iron Works. Toronto. Gutta
Fercha & Rubber, Ltd. New Glasgow, Eastern Steel
Co.. Ltd.
PIRON AND ^ WIRE AND MALLEABLE ■
STEEL I MANILA 1—^ AND CAST
PIPE Jl ROPE M FITTINGS i ^
Large stock of good sound SECOND HAND Largest stock of NEW pipe in the Middle West
eitL'plt^fcoipta^^^^^^^ OHIO PIPE CO., Works and Yards, FINDLAY, OHIO
W. H. THOMAS, President r,evcDi c u e a u H. WOODWARD, Sales Mgr.
EDWARD COOPER. Vice Pres. **• ''•-P. »• G. M. j g pgARSON, Treasurer
Flat-Top Fuel Co.
Ineorporntod
GENERAL OFFICES
BLUEFIELD, W. VA.
E. K. SHERA
Ohio and Indiana Salesman
W. S. HAMLIN
Southern Salesman
Mine Owners and Shippers Exclusively of
Pocahontas Furnace and Foundry Coke
Capacity 250,000 Tons per Annum
Cooper-Thomas Cream of Pocahontas Coal
Capacity TWO MILLION Tons Annually
GUARANTEED NUMBER THREE
THICK VEIN
Domestic Lump and Egg Screened Mine Run Standard Mine Run
Steam Nut Washed Nut, Pea and Slack “Flat Top” Smithing
CLOSELY SCrVeNeV^N OF MINE
Very, Very Lumpy — A GREAT COAL FOR DEALERS
HOW WE PLEASE OUR TRADE
UANCFACTOKE ODR OWN COKE MINE OUR OWN COAL DO OUR OWN SELLING
WRITE US^FOR PRICES
ROLLER SCREENED COKE
Especially Prepared for Domestic Use
EGG, STOVE, NUT AND PEA SIZES
HOLLY STOVER, • Western Mgr.
Lytton Building
CHICAGO
Phonei 919 Herrison
Our Coke is made from Youghiogheny Coal.
We have the only roller screened coke plant west of the Mississippi.
Prompt shipments via C. M. & St. P., Illinois Central, C, G. W.
and C. B. & Q. railways.
We solicit your inquiries.
THE KEY CITY GAS CO.
DUBUQUE, IOWA
Improved Cutterhead and Vanadium
Steel Cutter Chain
SOLE AGENTS FOR
Morris Automatic Bit Machines
Do away; with expensive hand sharpening. More hits at less cost.
LOTT MINE EQUIPMENT CO.
7031 South Chicago Are., Chicago, HI.
Electric
Coal Mining
Machine
Repairs
General Offices:
MEEKER & COMPANY
Western Agent
SHIPPERS OF
1 43 Liberty St.
Wyoming Valley Anthracite
Philip Rafferty
New York City
Shipments to all Eastern and Western points in the United States and Canada
reached by the Pennsylvania, Delaware & Hudson, Central Railroad of New Jersey
and their connections and from New York tidewater.
Ford Bldg., Detroit
Mention The Black Diamond when writing advertisers.
32
THE BLACK DIAMOND
[December 25
EMMONS COAL MINING COMPANY
MINERS AND SHIPPERS
“Culpepper" Bituminous Coai
Smokeless Lump, 6^', 3]^" and Sizes.
General Offices — Land Title Building, PHILADELPHIA, PA,
Advertising creates PRESTIGE and
prestige brings PROFIT. That’s why
“it pays to advertise.”
T. B. DAVIS, President, No. 1 Broadway, New York
Island Creek Coal
Shipped via Chespeake & Ohio Railway
BLOCKY— CLEAN
R. S. McVeigh, Vice-Pres., Union Central Bldg., Cincinnati, O L. A. HICKLEY, Vice-Pres.. Land Title Bldg., Philadelphia. Pa.
From the model mines of the United —I 1 From the new and magnificently
States Coal & Oil Co., in Logan Co., I ) equipped mines of Pond Creek Coal
West Va., which produced 2,207,444 Shipped via Norfolk & Western Railway j Co. in Pike County, Kentucky, which
tons in 1914. LOW SULPHUR * produced 690,653 tons in 1914.
For quick, dependable steam development. For work reqnirinii a long flame and a high percenlade of volatile matter. For domestic use.
cre>b?k: domkstio si^r^iiv'T rvXJivii5*
One quality Ideal preparation Stocks well Burns freely Be sure you get genuine Island Creek
Inquiries solicited for coal prepared in various sices for shipment via rail, take and tide-water, and from large storage plants at Sekitan, Ohio, Superior, Wis., and Duluth. Minn.
ISLAND CREEK COAL SALES COMPANY Exclusive sales agents for the above mentioned mines
VENABLE JOHNSON, Manager W. H. GROVERMAN, Northwestern Manager FRANK COLLINS, Manager
Ford Builcung, Detroit, Mich. Pl3rxnouth Building. Minneapolis, Minn. Plymouth Building, Minneapolis, Minn.
Lehigh & Wilkes-Barre Coal Company
MINERS AND SHIPPERS OF
ANTHRACITE COAL
HONEY BROOK LEHIGH
WILKES-BARRE FREE BURNING
PLYMOUTH RED ASH
Capacity, 6,000,000 Tons per Annum
ALL RAIL AND TIDE WATER SHIPMENTS
The Sign of Quality
Shipping Wharves{LTe‘ ”
P. B. HEILNER, Vice President and Gen’l Agent
DANIEL ANTHONY, Assistant Gen’l Agent
143 Liberty Street, New York
JOHN LANCE, Line Agent, Elizabeth, New Jersey
LEHIGH & WILKES-BARRE COAL COMPANY
OF NEW JERSEY
A. DENITHORNE, President, 48 Congress Street, Newark, N. J.
LEHIGH & WILKES-BARRE COAL COMPANY
OF MASSACHUSETTS
C. C. ALLEN, General Manager, 141 Milk Street, Boston, Mass.
GENERAL OFFICES : 16 South River St., Wilkes-Barre, Pa.
L. R. PAGE, Pt,s. J. J. TIERNEY, Vic-Prei. and Mgr. Sales
H. W. TUMAN, Sec’y H. E. WaSOH, Treaa.
CROZER-POCAHONTAS CO.
1008 North Americao Building PHILADELPHIA. PA.
SHIPPERS OF
Standard Pocahontas Coal
Mines located in heart of original Pocahontas fields, insure
quality that has made this coal the standard the world over.
BRANCH OFFICES:
10 Congresa St. (S. P. Barton & Co.) Boston, Mass. Law & Commerce Bldg. Bluefleld, W. Va.
Fiahar Bniiding .... Chicago, m. Citizena Bank Building - Norfolk, Va.
17 St. Helen’s Place (D. Flack & Son), London, E. C.
WESTMORELAND
COAL CO.
The Standard Gas Coal
MINES IN WESTMORELAND
COUNTY, PENNSYLVANIA
PRINCIPAL OFFICE:
224 South 3rd St., Philadelphia, Pa.
WITTENBERG COAL COMPANY
SUPERIOR STEAM COALS
WITTENBERG’S ACME— POCAHONTAS— NEW RIVER
BRANCH OFFICESi PHILADELPHIA, Bourse Building NEWPORT NEWS. VA.. West Avenue NORFOLK. VA.. Seaboard Bank Bldg. LONDON, ENG.
EUROPEAN AGENTS ■ Harrisons (London) Limited, 66 Mark Lane, London, Eng. Cable Address: “WITCOAL, NEW YORK”
Mention Thk Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND
33
HUTCHINSON COAL CO
PRODUCERS OF
LOGAN COUNTY SPLINT AND LINDEN CHUNKS WHITE ASH
FAIRMONT GAS AND STEAM COAL PITTSBURG NO. 8
MAIN OFFICE FAIRMONT, W. VA.
PHILADELPHIA STOCK EXCHANGE BLDG.
PHILADELPHIA. PA.
ROCKEFELLER BLDG.. CLEVELAND. 0.
KEYSTONE COAL & COKE CO.
Westmoreland Gas, Greensburg Steam and Miller Vein Smithing Coal
MANUFACTURERS OF
CONNELLSVILLE COKE— FOUNDRY, FURNACE AND CRUSHED— INDIVIDUAL CARS
0«n«ral Offlcai: aRBBNSBURO. PA. Ofllo**: NBW YORK, BOSTON, PHII.A1>1IIjPHIA. BABTIlfORB, PITTSBUROH and CLBVB1.AND.
The Lehigh Coal and Navigation
General Offices : 437 Chestnut Street, Philadelphia, Pa.
S. D. WARRINER, President. °
RICHARD T. DAVIES, General Coal Agent. i4s Liberty s». uii weinutst. uiMUkSt.
CHARLES H. DAYTON, Ass’t Gen’l Coal Agent. New York Philadelphia Beitao
THE SKEELE COAL CO., Sales Agents, Marine National Bank Bldg., Buffalo, N. Y
ROY W. BELL
Agent
Syracuse
N. Y.
SUSQUEHANNA COAL COMPANY
MINERS AND SHIPPERS
CELEBRATED “SUSQUEHANNA” ANTHRACITE
GEHERAL OFFICE, 907 Commercial Trust Building. PHILADELPHIA, PA.
Manager’s Oifice and Purchasing Department, Miners’ Bank Building, Wilkes-Barre, Pa.
- SALES OFFICES -
NEW YORK CITY, No. 1 Broadway BALTIMORE, 100 Chamber of Commerce Bldg. CHICAGO, 1306 Old Colony Bldg.
PHILADELPHIA, 1436 Commercial Trust Bldg. WILLIAMSPORT, 1, 2 and 3 Hart Bldg. ERIE, Marine Bank Bldg.
THORNE, NEALE CSb COMPANY, Inc.^
601-610 Stephen Girard Building, PHILADELPHIA, PENNA.
Temple Collieries
Harry E . L. V.
Forty Fort . L. V.
Mount Lookout L. V, or D. L. & W.
Lackawanna - D. L. & W. or Erie
Schuylkill Collieries
Buck Run . - P. & R,
New Castle - - - - - P. R. R.
ANTHRACITE and
BITUMINOUS
COALS
SHIPMENTS — RAIL OR WATER
Agents for
Psu’dee Bros. & Co. Lattimer-Lehigh
Bituminous
Sonman Shaft - - - - “B” Vein
Sonman Slope - - - - '‘E” Vein
Sonman Smithing — IJ^-inch Screened,
Low Sulphur, Spongy Coke
New York Office : 17 Battery Place
Cable Addregg; “THORNEALE”
CHAS. £. FERNBERG, General Sales Agent
CHICAGO
BALTIMORE BOSTON
BUFFALO MAUCH CHUNK
Mention The Black Diamond when writing advertiserg.
34
THE BLACK DIAMOND.
[December 25
Books that belong at the right hand of every coal mine
operator, mine manager, superintendent, etc.
- - - - o -
Advanced Machinist. 672 pages, 700 illustrations
and 1,800 references. Price $2.00.
Aerial or Wire Ropeways, by A. J. Wallis-Tayler.
255 pages, 155 illustrations. Price $3.00.
Application of Electric Power to Mines, by W. H.
Patchell. 344 pages, 91 illustrations. Price $4.00.
Anthracite Coal Combination in the United States,
by Eliot Jones. 275 pages. Maps and charts. Price $1.50.
Black Diamond each week for one year, $3.00.
Black Diamond Year Book, 1914 edition. 365 pages.
Price $5.00.
Blasting, by Oscar Guttman, C. E. 146 illustrations,
183 pages. Price $3.00.
Chemistry of Mining and Mine Ventilation, by Jos. J.
Walsh. 200 pages, 27 illustrations. Price $2.00.
Carbonization of Coal, by V. B. Lewes. 330 pages,
27 illustrations. Price $3.00.
Coal, by Jas. Tonge. 283 pages, 46 illustrations.
Price $2.00.
“Coal Catechism,” by William Jasper Nicolls.
Answers over 666 questions regarding the mining, his¬
tory, selling of coal and coke. Price $2.00.
Coal, Its Composition, Analysis, Utilization and
Valuation, by E. E. Sommermeier. 175 pages, illustrated.
Price $2.00.
Coal Mining, by Robert Peel. 386 pages, 214 illus¬
trations. Price $1.25.
Coalier’s Actuary, Giving Price of Any Amount of
Coal from 5 to 1,100 Tons, and in Prices Ranging from
5c to $15.00. Bound in cloth $2.75, in leather $3.25.
Colliery Manager’s Hand Book, by C. Pamely. Mo¬
rocco, 1208 pages, 1,000 illustrations. Price $10.00.
Combustion of Coal and Prevention of Smoke, by
Wm. M. Barr. 350 pages, illustrated. Price $1.00.
Compressed Air, by L. I. Wightman. 160 pages and
110 illustrations. Price $1.00.
Construction and Working of Pumps, by E. C. R.
Marks. 267 pages. Price $1.50.
Cost of Mining, by J. R. Finlay. 415 pages, illus¬
trated. Price $5.00.
Cushing’s Manual of Parliamentary Practice with
Rules of Procedure in Business Corporation Meetings.
280 pages. Price $1.00.
Design of Mine Structures, by M. S. Ketchum, C. E.
460 pages, 265 illustrations, 65 tables and 7 plates. Price
$4.00.
Dynamo-Electric Machinery, by F. B. Crocker. 250
pages and 260 illustrations. Price $1.50.
Electric Blasting Apparatus and Explosives, by Wm.
Maurice. 167 pages, 88 illustrations. Price $3.50.
Electrical Engineering for Mining Students, by H. J.
Heather. 344 pages, 183 illustrations. Price $2.50.
Electrical Mining Installations, by P. W. Freud-
macher, 102 pages, 36 illustrations. Price $1.00.
Electrical Equipment in Collieries, by Duncan &
Penman. 329 pages, 157 illustrations. Price $4.00.
ElectricM Practice in Collieries, by D. M. Burns, M.
E. 307 pages and 172 illustrations. Price $2.00.
Electricity in Mining, by Siemens Bros. Dynamo
Works, Ltd. 201 pages, 189 plans and illustrations.
Price $3.75.
Electricity in Mining, by S. F. Walker. Price $3.00.
Electric Mine Signaling Installations, by Lummis
Paterson. 190 pages, 139 illustrations. Price $1.50.
Electric Wiring and Lighting, by Knox and Shaad.
190 pages and 150 illustrations. Price $1.00.
Elementary Coal Mining, by G. L. Kerr, M. E. 225
pages, 200 illustrations. Price $1.25.
Further description of any of the above booths will be sent upon request.
When writing or ordering please address letter to Book Department
Erecting and Operating. 600 pages and 500 draw¬
ings. Price $2.00.
Examination and Thermal Value of Fuel, by Coste
and Andrews. 278 pages, 63 illustrations and 8 plates.
Price $2.00.
Friction of Air in Mines, by J. J. Atkinson. Price
$0.50.
Fuel and Refractory Material, by A. H. Sexton. 374
pages, 104 illustrations. Price $2.50.
Gas & Coal Dust Firing, by A. Putsch. Price $3.00.
Gas Engine Manual. 512 pages, 156 drawings. Price
$2.00.
Gases Met With in Coal Mines, by J. J. Atkinson
Price $0.50.
Haulage and Winding Appliances Used in Mines, by
C. Volk. 160 pages, 155 illustrations. Price $4.00.
Heat Efficiency of Steam Boilers, by Bryan Donkin.
311 pages, 149 illustrations. Price $7.00.
Heat Energy & Fuels, by Hanns von Juptner. 306
pages and 118 illustrations, 138 tables. Price $3.00.
Laws of Business, by Theophilus Parsons. 946
pages, bound in genuine Buckram. Price $4.00.
Methods of Air Analysis, by J. S. Haldane. 130 pages,
24 illustrations. Price $1.75.
Mining Without Timber, by R. B. Brinsmade. 300
pages, fully illustrated. Price $3.00.
Modern Mining Practice, by G. M. Bailes. Five vol¬
umes. Each $3.50.
Modern Mine Valuation, by M. H. Burnham. 160
pages, 19 illustrations. Price $3.75.
New Methods of Testing Explosives, by C. E. Bichel.
62 pages, illustrated. Price $2.00.
Notes and Formulae for Mining Students, by J. H.
Merivale. 188 pages. Price $1.00.
Practical Coal Mining, by G. L. Kerr, M. E. 778
pages, 755 illustrations. Eight volumes. Price $4.50.
Practical Lessons in Electricity, by Crocker, Cushing
and Sager. 275 pages and 150 illustrations. Price $1.50.
Practical Shaft Sinking, by Francis Donaldson, M. E.
150 pages, 63 illustrations. Price $2.00.
Prevention of Smoke, by W. H. Popple will. 220
pages, 50 illustrations. Price $3.50.
Pumps and Hydraulics. In two parts. 900 pages and
700 illustrations. Price $2.00.
Recovery of Coal Mines After Explosions and Fires,
Rules of, by W. E. Garforth. Price $1.50.
Recovery Work After Pit Fires, by R. Lamprecht.
187 pages, 76 illustrations. Price $4.00.
Shaft Sinking in Difficult Cases, by Riemer and
Brough. 122 pages, 18 illustrations and 19 plates. Price
$3.50.
Shot-Firer’s Guide, by Wm. Maurice. 212 pages, 78
illustrations. Price $1.50.
Simple Mine Accounting, by David Wallace, 60
pages, with bookkeeping forms. Price $1.00.
Smoke Prevention and Fuel Economy, by Booth and
Kershaw. 194 pages, illustrated. Price $2.50.
Technical Gas and Fuel Analysis, by A. H. White.
255 pages, 47 illustrations. Price $2.00.
Text of Mining Formulae, by Robt. W. Dron. 62
pages. Price $1.00.
Text Book of Coal Mining, by H. W. Hughes, C. E.
563 pages, 690 illustrations and 4 plates. Price $7.00.
Timbering and Mining, by W. H. Storms. 279 pages,
fully illustrated. Price $2.00.
Ventilation of Coal Mines, by Fairley & Andre.
Price $0.50.
Ventilation of Mines, by R. Wabner. Price $4.50.
THE BLACK DIAMOND
1114 MANHATTAN BUILDING, CHICAGO, ILLINOIS
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
35
When you install your new tipple do not fail
to include an Ottumwa Rotary Dump. They
are the very latest thing going and are one
of the most useful and economical.
Ottumwa Rotary Dumps
Made in various sizes and capacities.
Electric or steam power driven.
Ottumwa Dumps are extremely rapid.
Permit using solid end cars which reduces
car repairs to a minimum.
Permits reversing cars, saving switching.
Saves labor in dumping.
By having solid end cars you prevent
many wrecked cars.
By preventing wrecked cars you prevent
personal accidents.
Why not write us telling size of cars, load carried etc.,
and we will gladly quote you a price?
Your shortage claims
filed and collected at a
cost of one cent per claim
Are you filing your claims lor loss of weight in transit? Or
are you losing that money, which rightfully belongs to you,
because you do not want to bother with the tedious system of
red tape connected with their collection? Our
RAILROAD CLAIMS BOOK
does away with the red tape, and permits a quick and con¬
venient way of filing and collecting claims, and hastens their
settlement.
RAILROAD CLAIMS BOOK,
No. 444, is book containing 100
Original and 100 Duplicate copies of
a form of claim blank, preferred by
the railroad companies and used by
associations everywhere.
These blanks when properly filled
in, and the Original copy sent to the
claim agent, not only presents your
claim in an effective and proper man¬
ner, but causes its early settlement.
The Duplicate copy of each claim re¬
mains in the book for your record.
This book is well bound in art can¬
vas, 6}/2 X 1 1 inches, contains 1 00
Original and 100 Duplicate Blanks and
2 sheets of carbon paper. Price $1 .00.
When ordering write the
Book Department
THE BLACK DIAMOND
1114 Manhattan Bldg.,
Chicago, Ill.
RAILROAD
CLAIMS BOOK
THE BLACK DIAHOMD
CHICAGO
DON’T STOP YOUR TIPPLE CARS
ON THE SCALE
The Streeter-Amet Recorder automatically weighs
the cars as they pass over the scale.
Your weighing capacity is more than doubled. Ac¬
curate weights are assured and a permanent, printed
weight of each car is recorded.
It prevents the “leaks” and losses caused by forget¬
fulness or carelessness upon the part of the weigh-
master or operator. It is the most accurate, depcnd-
ableand satisfactory method of weighing known. Used
by large and small mining companies everywhere.
May we send yon further particulars?
STREETER AMET WEIGHING
& RECORDING COMPANY
4101-4105 Ravenswood Avenue CHICAGO, ILL.
Mention The Black Diamond when writing advertisers.
36
THE BLACK DIAMOND
[December 25
Index To Advertisers.
The Coal Buyers* Guide
A List of Mine Operators and Wholesale Coal and Coke Shippers Whose
Advertisements Appear in This Journal.
Classified Directory of Manufacturers of Mine
and Yard Supplies
Page
IIiXiINOIS
Franklin County —
Bell & Zoller Coal Co.. 2->
Bickett Coal & Coke Co . C
Big Creek (^ollie^ Co.. <1
Buchanan Coal Co.....
Chicago. Wilmington &
I'ranklin Co .
Con.sumers Co . .
1.1. K. Dering Coal Co...
I’lohn A. l.ogan Coal Co.
Mitchell & Dillon Coal
! Co . ■
I JloderweU, C. M., & Co.
i Purity Coal Co .
Kcntl, . P.. Co .
' Butter. David, S: Co....
Thomson & Burton Co..
Harrlsburgr —
O’Gara Coal Co .
Sprlngifield —
Ciilmore & Solomon . 11
O’Cara Coal Co . 17
Third Vein Spring Valley
Coal Co . 10
’Williamson
Mitchell &
Co. .....
O'Cara Coal
County —
Dillon Coal
1!)
12
17
17
2.3
20
Co .
INDIANA
Consolidated Indiana Coal
Co. . .
Deep _ Vein Coal Co. . . .
Miami Coal Co. . . . • • —
( Itter C reek Coal Co . . .
Richards & Son .
KENTUCKY
Consolidation Coal Co..
The Gibson-Spence Coal
Co . .
W. C. Goodnow Coal Co.
l.'ii-’tid Creek Coal Sales
Co .
Jones & .Adams .
Mitchell & Dillon Coal
Co .
Northwestern Fuel Co. .
Pocahontas & Jellico Coal
Co .
R. C. Whitsett Coal &
Mining Co .
MASYDAND
aeorgres Creek —
Brothers Valley Coal Co.
Consolidation Coal Co..
Cibson-Spence Coal Co. .
New Central Coal Co...
Parrish, Phillips & Co..
OHIO
Cambrldgre —
Consolidation t Oal To..
The Gibson-Spence Coal
Co .
l.orain Coal — Dock Co.
.Mitchell & Dillon Coal
Co .
New Pittsburgh Coal Co.
New York Coal Co .
O’tiara Coal Co .
Ohio & Michigan Coal
Co. . .
Peacock Coal Co .
Reiss, C., Coal Co .
Seidenfeld-Hammond Coal
Co .
Warner, W. 11., & Co..
Fltts’burg’h, No. 8 —
(I’Cara Coal Co . 17
Jones & Adams Co . 20
Sunday Creek Co . 21
FENNSYD VANIA
Cambria —
Berwind-White . 24
Cosgrove .
Dexter & Carpenter . 28-
Kmmons Coal Mining Co. 32
Peale, Peacock & Kerr.. 27
Pennsylvania Coal & Coke
Coro . 17
The Skeele Coal Co.... 25
Thorne, Neale & Co.... 33
Vernon Metal & Produce
Co . 24
Whitney & Kemmerer. . 24
Clarion —
Wittenberg Coal Co.... 32
Clearfield
Berwind-White . 24
Peale, Peacock S: Kerr. . 27
Pennsylvania Coal & Coke
Corp . 17
Indiana —
Cosgrove .
Peale, Peacock & Kerr.. 27
Pennsylvania Coal & Coke
Corp . 17
Jefferson —
Peale, Peacock & Kerr. . 27
Somerset —
Berwind-White . 24
Brothers Valley Coal Co. 29
Consolidation Coal Co... 18
Cosgrove .
Kmmons Coal Mining Co. 32
Vernon Metal & Produce
,Co . 24
Whitney & Kemmerer. . 24
27
Westmoreland —
Berwind-White . ■
Keystone Coal &
Page
Coke
T o.
Pittsburgh Coal....
Westmoreland Coal
Westmoreland &
nellsville Coal &
T'o .
Co . .
Con-
Coke
24
24
21
32
Yousfhioffheny —
Consolidation Coal Co. .
Nicoll. B., 3; Co .
Northwestern Fuel Co..
Pittsburgh Coal .
Warner, W. II., & Co. .
20
21
Smitbingr —
Blake, C. Co..
Bowman. C. C. . .
Chesapeake 8: Ohio
8- Coke Co .
Columbus Iron S:
Co .
Kevstone Coal &
Co .
Nicoll, B., 8 Co...
Reiss, C. , Coal Co.
'Thorne, Neale 8 Co
'The White Oak Co:d
19
Coal
Steel
22
Coke
33
... 10
... 10
... 33
Co. 17
VIRGINIA
ClinehTield . .
Whitney 8 Kemmerer..
WEST VIRGINIA
10
24
Fairmont —
Alden Coal
Mining Co. . 19
Pocahontas —
Berwind-White . 24
Brothers Valley Coal Co. 29
Cabin Creek Consolidated
Co . : 19
Cpstner. Curran & Bul¬
litt, Inc . 23
Chesapeake 8 Ohio Coal
8 Coke Coal . 22
Consolidation Coal Co.. 12
Crorer-Focahontas Coal
Co . 32
Flat Top Fuel Co . 31
Globe Coal Co . 7
W. C. Goodnow Coal t ". 17
Mitchell & Dillon Coal
Co . 2i
O'Gara Coal Co . 17
Patterson, S. .1 . 23
Peabody Coal Co . 21
Pennsylvania Coal & Sup¬
ply Co . 23
Pocahontas Fuel Co.... 2
Pocahontas & Jellico Coal
Co . 23
Reiss, C., Coal Co . 19
Sunday Creek Co . 21
'Thorne, Neale 8 Co. ... 33
Warner, W .H., 8 Co. . 2
White Oak Coal Co. ... 17
New Rivet —
Berwind-White Coal Min¬
ing Co . 24
Blake, C. G., Co . 19
Cp'tner. Curran & Bul¬
litt, Inc . 23
Chesapeake 8 Ohio Coal
8 Coke Co . 22
New River Coal Co.... 17
Reiss. C., Coal Co . 19
•Smokeless Fuel Co . 19
C^erpon Metal & Produce
Co . 24
White Oak Coal Co, ... 17
Wyatt Coal Co .
Splint —
Blake, C. G., Co . 19
Blue -Ash Coal Co . 23
Cabin Creek Consolidated
Coal Co . 19
Carbon Fuel Co . 23
Castner. Curran & Bul¬
litt, Inc . 23
Cbesaneake 8 Ohio Coal
8 Coke Co . 22
Consolidation Coal Co. . 12
Crozer-Pocahonlas Co... 32
Globe Coal Co.... . 7
Hutchinson Coal Co.... 33
Island Creek Coal Sales
Co . 32
Mitchell 8 Dillon Coal
Co . 21
O’Gara Coal Co . 17
Reiss, C., Coal Co . 16
Smokeless Fuel Co . 19
.Sunday Creek Co . 21
Winifrede Coal Co . 22
White Oak Coal Co.... 1'7
AVyatt Coal Co .
Page
. . 28
. . 29
ANTHRACITE
Bowman, C. C. ..... .
A. B. Currie 8 Co. .
Delaware, Lackawanna &
VV'estern Coal Co.... 24
Dexter 8 Carpenter . 28
Dickson 8 Kddy.. ..... 25
Emmons Coal Mining Co. 32
Globe Coal Co . 7
Jones 8 Adams . _. 26
'The Lehigh Coal & Navi¬
gation Co., Philadelphia 33
Lehigh Valley Coal Sales
Co . 26
Lehigh & Wilkes-Barre
Coal Co . 32
Meeker 8 Co . 17
Mitchell & Dillon Coal
Co . ._. . . 21
Northwestern Fuel Co..
Ohio 8’ Michigan Coal
Co .
Parrish, Phillips 8 Co.. 24
Pennsylvania Coal & Sup¬
ply Co . 23
Philadelphia & Reading
Coal 8 Iron Co . 20
Potts, F. A., 8 Co . 26
Reiss, C. . Coal Co . 16
■Schenck, S. C., Agent.. 28
The Skeele Coal Co.... 25
Susquehanna Coal Co.. 33
'Thorne, Neale 8 Co. ... 33
J. .S. Wentz 8 Co . 10
W hitney 8 Kemmerer. . 24
Williams 8 Peters . 25
CANNEX.
& Ohio C. &
billon Coal
Chesapeake
C, Co...
Mitchell &
Co .
Northwestern Fuel Co
Reiss. C., Coal Co...
COKE
22
21
16
Bowman; C. C . 28
Brothers Valiev Coal Co. 29
By-Products Coke Corp. 8
Chesapeake & Ohio C. &
C. Co . 22
Flat 'Top Fuel Co . .11
W. C. Cloodnow Coal Co. 17
Key City Gas Co . 31
Kevstone Coal 8 Coke
Co . 33
New River Coal Co. . . . 17
Nicoll. B.. _ 8 Co . 19
Pennsylvania Coal 8 Coke
Corp . 17
White Oak Coal Co.... 17
Whitney 8 Kemmerer.. 24
CHABCOAX.
Century Fuel Co . 25
Classified Directory of
Manufacturers of Mine
and Yard Supplies.
Page
Air Compressors.
George D. Whitcomb Co.,
Rochelle, Ill . 39
Analytical' Chemists.
Culick Henderson Co... 31
Auto Tracks.
Kissel Motor Car Co.,
Hartford, Wis .
Knox Motors .
Packard .
Pierce-Arrow Motor Car
Co.. Buffalo. N. Y... 42
The Autocar Co .
Auto Towinff Cable.
Broderick 8 Bascom Rope
Co., St. Louis . 38
Bag'g'lng' System.
Link-Belt Co .
Bearingrs.
Jeffrey Mfg. Co., Colum¬
bus, Ohio .
Link-Belt Co ..... .
Robins Conveying
Co., New York. .
37
Belt
Belt Conveyors.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Gifford-Wood Co., Hud¬
son, N. Y.; Boston,
Mass.; Chicago, III... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co . . ._ .
Robins Conveying Belt
Co., New York . 31
Belt Hoists.
Mead-Morrison Mfg. Co.,
Cambridge, Mass . 10
Bit Uachlnes.
Lott Mine Equip. Co... 3]
Box Car Doafiers.
Christy Box Car Loader
Co., Des Moines, Iowa 43
Eagle Iron Works, Des
Moines, Iowa . 39
Manierre Eng. Co .
Ottumwa Box Car Loader
Co., Ottumwa, Iowa, . . 3.')
Page
Breaker Construction.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Breaker Machinery.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Briquetting Machinery.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Mashek Eng, Co., 141
Broadway, New York. 31
Backet Elevators.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio. . 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, III... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio. . . 37
Robins Conveying Belt
Co., New York . 31
Buckets (Clam Shell).
"The Hayward Co., New
York . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
McMyler Interstate Co.,
Bedford, Ohio . 41
Backets (Drag Iilne).
The Hayward Co., 50
Church St., New York,
N. Y . 39
Backets (Orange Feel).
The Hayward Co., New
A^ork . 39
McMvler Interstate Co.,
Bedford, Ohio . 41
Buckets (Grab).
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
The Hayward Co., New
York . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
McMvler Interstate 'Co.,
Bedford, Ohio . 41
Buckets (Dog Grapples).
The Hayward Co.. 50
Church St., New York.
N. Y . .39
Backets (Rock Grapples).
The Hayward Co., 50
Church St., New York,
N. Y . 39
Bunkering Machinery.
McMyler Interstate Co. . 11
Cableways and Tramways.
Broderick 8 Bascom Rope
Co., St. Louis . 38
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Cages (Mine).
C. O. Bartlett 8 Snow
Co., Cleveland, flhio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Car Dumps.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
McMyler Interstate ('o. . 41
Phillips Mine 8 Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Car Hauls.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio. . 39
Gifford-Wood Co.. Hud¬
son, N. Y. ; Boston,
Mass.: Chicago, III... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Car (Mine and Dump).
Eagle_ Iron Works, Des
Moines, Iowa . 30
Hockensmith Wheel 8
Mine Car Co., Penn
Station, Pa . 41
Jeffrey Mfg. Co., Colum¬
bus. Ohio . 37
Link-Belt Co .
Link-Belt Co . . .
Co., Ottumwa, Iowa... 35
Phillips Mine 8 Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Chntss.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, 111... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Phillips Mine 8 Mill Sup¬
ply Co.. Pittsburgh, Pa. 41
Coal and Ore Bridges.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
I.ink-Belt Co .
McMyler Interstate Co. . 41
Robins Conveying Belt
Co., New York . 31
Page
Coal Crushers.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus. Ohio . 37
Link-Belt Co .
Coal Cutters,
Goodman Mfg. Co., 48th
Place and Halsted St.,
Chicago .
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Morgan-Gardner Electric
Co., Chicago .
George D. Whitcomb Co.,
Rochelle, III . 39
Coal Handling Machinery.
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago. Ill... 40
The Hayward Co., 50
Church St., New York,
N. Y . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
McMyler Interstate Co. . 41
Mead-Morrison Mfg. Co.,
Cambridge, Mass . 40
Coal Mining Machinery.
Goodman Mfg. Co., 48th
Place and Halsted St.,
Chicago .
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Morgan-Gardner Electric
Co., Chicago .
George D. Whitcomb Co.,
Rochelle, Ill . 39
Coal Mining Plants.
Allen 8 Garcia Co., Chi¬
cago . 31
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Whitcomb, Geo. D., Co.,
Rochelle, Ill . 39
Coal Pockets.
Allen 8 Garcia Co., Chi¬
cago . 31
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Gifford-Wood Co., Hud¬
son, N. Y. : Boston,
Mass.; Chicago, III... 40
Jeffrey Ivlfg. Co , Colum¬
bus, Ohio . 37
Coal ’Washing Machinery.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Conveying JUachlnery.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Cifford-Wood Co.. Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, III... 40
The Hayward Co., New
York . S9
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
McMyler Interstote Co. . 41
Robins Conveying Belt
Co., New York . 31
Conveyors (Belt).
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio. . 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, 111... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co... .
Robins Conveying Belt
Co., New York . 31
Conveyors (Buckets).
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio. . 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass. ; Chicago, III . . . 40
The Hayward Co., New
York . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
McMyler Interstate Co.,
Bedford, Ohio . 41
Conveyors (Chain).
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, III... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . .37
Core Drill Contractors.
Pennsylvania Drilling Co.,
New York .
Counterweight Drums.
The Hayward Co., 50
Church St., New York,
N. Y . 39
Page
Couplers.
Gravity Coupler Co., Peo¬
ria, Ill .
Coupling Pins.
Gravity Coupler .
Coupons.
Allison Coupon Co . 41
Cranes.
(Locomotive, Jib, Pillar,
Cantilever, Hand,
Traveling, Electric
Traveling.)
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
McMyler Interstate (^o.,
Bedford, Ohio . 41
Cross-Over Dumps.
Jeffrey Mfg. Co.. Colum¬
bus, Ohio . 37
Phillips Mine 8 Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Crushing Machinery.
C. O. Bartlett 8 Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Derricks and Derrick
Fittings.
The Hayward Co., 50
Church St, New York,
N. Y . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt (io .
McMyler Interstate Co. . 41
Derrick Swingers.
Mead-Morrison Mfg. Co.,
Cambridge, Mass . 40
Designers of Plants.
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
The Hayward Co., New
York . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt (io .
McMyler Interstate (io.. 41
Digging Machinery.
The Hayword Co., 50
Church St., New 'York,
N. Y . 39
McMyler Interstate Co. . 41
Dredging Machinery.
The Hayward Co.. 50
Church St., New York,
N. Y . .’39
McMyler Interstate Co. . 41
Drills.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Morgan-Gardner Electric
Co., Chicago .
Punxsutawney Drilling &
Con. Co., Punxsutaw¬
ney, Pa . 31
George D. Whitcomb Co.,
Rochelle, III . 39
Drills (Core).
Pennsylvania Drilling Co.,
New York .
Dnmp Oars.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Hockensmith Wheel 8
Mine Car Co.. Penn
Station, Pa . 41
Dynamos.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Goodman Mfg. Co., 48th
Place and Halsted St.,
Chicago .
Gregory Electric Co.,
Chicago . 31
Morgan-Gardner Electric
Co., Chicago .
Westinghouse Electric t
Mfg. Co., East Pitts¬
burgh, Pa .
Elyectrlo Moisting
Machinery. ^
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Westinghouse Electric 8
Mfg. Co., East Pitts¬
burgh, Pa .
Bleotric Bocomotlves.
Goodman Mfg. Co., 48th
Place and Halsted St.,
Chicago .
Jeffrey Mfg. Co., Celura-
bus, Ohio . 37
Morgan-Gardner Electric
Co.^ Chicago .
Westinghouse Electric &
Mfg. Co., East Pitts¬
burgh, Pa .
No. 26]
THE BLACK DIAMOND.
0/
ii
Booster
99
“Booster"
A Dividend Paying Investment
For Nearly Every Coal Mine
Jeffrey Centrifugal “Boosters” are small sized fans adapted to special mine
use. The fan is easily taken from place to place, and may, when not in use,
be kept as a reserve aid against fires and other emergencies.
The Centrifugal “Booster” solves the
problem of the ventilation of long
and contracted air-ways, where the Disc
Type of Booster is unable to provide the
necessary pressure.
An expenditure of five or six hundred
dollars for a complete ventilating equip¬
ment, very freciuently has saved several
thousand dollars cleaning up a remote
section of the mine.
General arrangement in the mine of a Centrifugal Booster
equipped with expansion discharge.
Six Foot Propeller Fan
fitted with steel casing for spe¬
cial connection. These fans
are furnished with steel con¬
struction to meet any requirements.
The Jeffrey
Propeller Fan
is a most dependable fan
for general ventilating pur¬
poses or for light duty
boosting.
Simple in operation, easily
installed, and reversed by
simply changing direction
of rotation. Self-contained
and is filled with Ball-Bear¬
ing 'Thrust Collars on each
side of the wheel, which
eliminates all friction.
Eight Foot Propeller Mine Fan.
'The main driving disc
prevents churning oi the
air which is so common
among other i)ropellc'r fans.
Write for our new Bulletin No. 110-8 on the subject of Mine Ventilation
Jeffrey Mfg. Co., 908 N. 4th St., Columbus, O.
New York
Boston
Philadelphia
Pittsburgh
Charleston, W. Va.
Chicago
Birmingham
Milwaukee
Denver
Montreal
Mention The Black Diamond when writing advertisers,
38
THE BLACK DIAMOND
[December 25
A half day lost
for the want of a
towline.
A Power steel Truckline
and a passing team
would have soon got that
stalled truck or team on
the road again without
any delay. A Powersteel
Truckline would have
prevented that lost half
day, that truck or team
from standing idle and
any disappointment
upon the part of the
customer which the de¬
lay might have caused.
Powersteel Trucklines
are compact and able to
withstand the most se¬
vere truck service. They
are 18 feet long and 34
inch thick, and are made
of that world-famous
Yellow Strand Wire rope
with a tested breaking
strain of about 12 tons.
Furnished with strong drop
forged hooks, and wire rope
or manila rope slings as
desired.
Let us send you a descriptive circular
and prices before the Winter months
and the muddy streets arrive. Write
Broderick & Bascom Rope Co.
845 North Second Street
St. Louis, Missouri
RAILS Switches
RELAYING RAILS NEW STEEL RAILS
40, 56, 60, 70, 75, 80, 8, 12, 16, 20, 25, 30, 35,
85 and 90 Lb. 40 and 45 Lb.
These rails are in stock at our Pittsburg yards, and can be shipped immediately; also
second-hand rails in stock cut any length needed for building and contract work.
Richardson & Co. Rail Dealers
1 1 03 Bessemer Bldg., Pittsburg, Pa.
Index to Advertisers
Page
Electric and Steam Hoists.
Mead-Morrison Mfg. Co.,
Cambridge, Mass . 40
Elevator Uacliliiery.
C. O. Bartlett & Snow
Co., Cleveland, Ohio. ■ 39
Gifford-Wood Co., Hud¬
son, N. Y.; Boston,
Mass.; Chicago, Ill... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 3
Ottumwa Box Car Loader
Co., Ottumwa, Iowa... 35
Robins Conveying Belt
Co., New Y'ork . 31
Engineers.
Allen & Garcia Co . 31
C. O. Bartlett & Snow ,
Co., Cleveland, Ohio.. 39
Buffum, F. D . 31
Gifford-Wood Co., Hud¬
son, N. Y.; Boston,
Mass.; Chicago, III... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Manierre Eng. Co .
Marshall Haney . 31
Mashek Eng. Co . 31
Nesbitt & Doolittle . 31
Engines (Hoisting and
Hauling).
C. O. Bartlett & Snow
Co., Cleveland, Ohio. . 39
Eagle Iron Works, Des
Moines, Iowa . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Litchfield Foundry & Ma¬
chinery Co . 40
Ottumwa Box Car Loader
Co., Ottumwa, Iowa... 35
Excavating Machinery.
The Hayward Co., 50
Church St., New York,
N. Y . 39
Pans (VentUatlng).
Eagle Iron Works, Des
Moines, Iowa . 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Litchfield Fdry. & Mach.
Co., Ottumwa, Iowa. . . 35
Link-Belt Co .
Forgings.
Jeffrey Mfg. Co., Colum¬
bus, Ohio. . . 37
Robins Conveying Belt
Co., New York . 31
Gasoline Eocomotives.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
George D. Whitcomb Co.,
Gear-Cutting.
RoBins Conveying Belt
Co., New York . 31
Gearing.
Generators.
Link-Belt Co .
Grey Iron Castings.
Robins Conveying Belt
Co., New York . 31
Hoisting Machinery.
Allen & Garcia Co., Chi¬
cago . 31
The Hayward Co., New
York . 39
Gifford-Wood Co., Hud¬
son, N. Y.; Boston,
Mass.: Chicago, Ill... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co... .
Robins Conveying Belt
Co., New York . 31
Hoists, Electric.
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Westinghouse Electric &
Mfg. Co., East Pitts¬
burgh, Pa .
Ice Handling Machinery.
Gifford-Wood Co., Hud¬
son, N. Y.; Boston,
Mass.; Chicago, Ill... 40
Iron.
Beck & Corbitt . 38
Irrigating Machinery.
The Hayward Co., 60
Church St., New York,
N. Y . 39
Earrles (Coke).
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co . . .
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, Pa. 41
(Continued from page 24)
Page
Eocomotlves.
Goodman Mfg. Co., 48th
Place and Halsted St.,
Chicago .
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Morgan-Gardner Electric
Co., Chicago .
Westinghouse Electric &
Mfg. Co., East Pitts¬
burgh, Pa., .
Whitcomb, Geo. D., Co.,
Rochelle, Ill . 39
Mine Car Hltchings.
Broderick & Bascom Rope
Co., St. Louis . 38
Hockensmith Wheel &
Mine Car Co., Penn
Station, Pa . 41
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Mine Car Trucks.
Hockensmith Wheel &
Mine Car Co., Penn
Station, Pa . 41
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, ra. 41
Mining Machines.
Goodman Mfg. Co., 48th
Place and Halsted St.,
Chicago .
George D. Whitcomb Co.,
Rochelle, Ill . 39
Mining Machines
(Electric).
Goodman Mfg. Co., Chi¬
cago .
Jeffrey Mfg. Co., Colum¬
bus, Ohio . . . 37
Morgan-Gardner Electric
Co., Chicago .
Westinghouse Electric &
Mfg. Co .
Motors.
Gifford-Wood Co., Hud¬
son, N. Y. ;■ Boston,
Mass.; Chicago, 111. ._. 40
Morgan-Gardner Electric
Co., Chicago . •
Westinghouse Electric &
Mfg. Co., East Pitts¬
burgh, Fa .
Ore Bedding Systems.
Robins Conveying Belt
Co., New York . 31
Ore Handling Machinery.
The Hayward Co., 60
Church St., New York,
N. Y . 39
Pipe.
Ohio Pipe Co . 31
Power Transmission
Machinery.
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Public Accountants.
Shepard & Hutchinson.. 31
Pulverizers.
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Pumps.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Balls.
Richardson & Co., Pitts¬
burgh, Pa . 38
Hope (Wire).
Broderick & Bascom Rope
Co., St. Louis . 38
Scales.
Streeter-Amet, Chicago . . 35
Screening Plants.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Screens (Mining).
Allen & Garcia Co., Chi¬
cago . 31
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Ottumwa Box Car Loader
Co., Ottumwa, Iowa. . . 35
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Screens, Botary.
Gifford-Wood Co., Hud-
SOT1» jjuatvii,
Mass.; Chicago, Ill... 40
Screening Plants.
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Mention The Black Diamond when writing advertisers.
Page
Screens (Bevolvlng) .
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Screens (Yard).
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, III... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Ottumwa Box Car Loader
Co., (Dttumwa, Iowa. . . 35
Robins Conveying Belt
Co., New York . 31
Shafting, Pulleys.
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., (Colum¬
bus, Ohio . 37
Robins Conveying Belt
Co., New York . 31
Steel.
Beck & Corbitt . 38
Steel Structures.
C. O. Bartlett & Snow
Co., Cleveland, Ohio. . 39
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, Ill... 40
Storage and Be-Handling
Equipment.
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, Ill... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
McMyler Interstate Co.. 41
Robins Conveying Belt
Co., New York . 31
Suspension Cableways.
Mead-Morrison Mfg. Co.,
Cambridge, Mass . 40
Tanks.
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, III... 40
Tipples.
Allen & Garcia Co., Chi¬
cago . 31
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Ottumwa Box Car Loader
Co., Ottumwa, Iowa.. 40
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, Pa. 41 '
Tramways.
Broderick & Bascom Rope
Co., St. Louis . 38
Link-Belt Co . ■■ .
Trench Excavating
Machinery.
The Hayward Co., 50
Church St., New York,
N. Y . 39
Trucks (Auto).
Kissel Motor Car Co.,
Hartford, Wis .
• Knox Motors .
Packard .
Pierce-Arrow Motor Car
Co . 42
The Autocar Co .
Wagon Eoaders.
Gifford-Wood Co., Hud¬
son, N. Y. ; Boston,
Mass.; Chicago, Ill... 40
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Washerles (Coal).
Allen & Garcia Co., Chi¬
cago . 31
C. O. Bartlett & Snow
Co., Cleveland, Ohio.. 39
Jeffrey Mfg. Co., Colum¬
bus, Ohio . 37
Link-Belt Co .
Weigh Baskets.
Eagle Iron Works, Des
Moines, Iowa . 39
Phillips Mine & Mill Sup¬
ply Co., Pittsburgh, Pa. 41
Wheels.
Hockensmith & Wheel
Mine Car Co., Penn
Station, Pa . 41
Ottumwa Box Car Loader
Co., Ottumwa, Iowa. . . 35
Wire Bope.
Broderick & Bascom Rope
Co., St. Louis . 38
No. 26]
THE BLACK DIAMOND
39
For Rapid, Economical Coal Handling
HAYWARD SiS. BUCKETS
These buckets fill to more than rated capacity each trip and reduce the
loss through chippage to one per cent or less. Owing to the widespread jaws
of the Hayward Bucket only a few pieces of coal are touched by the cutting edges.
The coal is drawn together by the closing power of the bucket and works only on
itself.
Write for a copy of our Pamphlet 602 devoted wholly to coal handling equipments.
THE HAYWARD COMPANY, 50 Church St., New York, U.S.A.
COBASCO SYSTEM
The MODERN METHOD of HANDLING MATERIALS
There are three general types of skip hoist construction, operated as
follows:
Two skip buckets in balance.
One skip bucket with counterweight.
One skip bucket without counterweight.
Any one of these allows for the application of entire automatic or
semi-automatic control, depending on the capacity, material and
general conditions surrounding the proposition.
THE C. O. BARTLETT & SNOW COMPANY
Cleveland, Ohio, U. S. A.
No^
The Superior Coal Company at Mine ■
a, Gillespie, Ill., on March 14th, hoisted 5,023,
tons^ of coal in eight hours from a det
making 1.562 hoisl^;^^
Clipping from
The
Black Diamond
of March 21,
1914
Thit REMARKABLE RECORD wat made with
Self Oas:es
"1
Shipment of Three Olsen Cages to the Chicago, Wilmington
A Vermillion Coal Co-» Orient, III.
Eagle Iron Works
Correspondence Solicited DES MOINES, IOWA
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FOR THE NO MULE MINE S
Use
Whitcomb
Gasoline
Locomotives
For
Main Line Haulage
MOST ECONOMICAL AND EFFICIENT
Whitcomb
Electric
Storage
Battery
Locomotive
For cross entry
and gathering
from the rooms
iV rite us for further information
GEO. D. WHITCOMB COMPANY
Rochelle, Illinois
Mention The Black Diamond when writing advertisers.
XXXXT
40
THE BLACK DIAMOND
I December 25
IF THE COST OF HANDLING YOUR COAL
IS EXCESSIV^E _ THE^OLLOWING WILL INTER-
"We have run two cars of coal through the pocket and we find
that it costs less than 2c per ton for labor to unload, and we
load our wagons at the rate of one ton per minute. We are
well pleased with the plant. - and - were up to see plant
work and were enthused with it.”
The above is one of many unsolicited testimonials.
Name of owner of this plant on request.
GIFFORD WOOD EQUIPMENT
accomplishes the same results wherever installed
Coal Elevators — Conveyors — Wagon Loaders
We also Design and Manufacture Buckets, Screens. Chutes. Bagging Hoppers, etc.
Everything for Yard and Pocket Economy and Efficiency. Our engineers will gladly
render you any assistance you may desire. Catalogs.
Main Office and Works
HUDSON, N. Y.
30 Church Street, New York
51 North Market Street, Boston
565 West Washington Street, Chicago
STEAM and ELECTRIC
HOISTS
for
Mines, Yards
and Docks
1st. (iet our Catalogs.
2nd. JCit our name on your list for bids.
3rd. Compare competing machines point for point.
YOUR KNOWLEDGE
of Machinery will bring out the Points of Superiority
in our line and will compel yon to purchase your
next machine of the
PIONEERS IN COAL HANDLING MACHINERY
MEAD-MORRISON MANUFACTURING COMPANY
Mead-Morrison Mfg. Co.,
128 Prescott St., Boston, Mass.
PLEASE SEND YOUR
CATALOGS
Nil me.
Atldre.ss .
THE “LITCHFIELD
A Pair of “Litchfield” 36x42 Hoisting Engines at the Old Ben Mining Company’s Mine at West Frankfort, Ill.
This illustration shows a pair of our
26x42 HOISTING ENGINES with 8-ft.
diameter drums, annealed cast steel drum
spiders, steel cranks and steel cross heads.
All parts have a very high factor of safety.
These engines are equipped with STEAM
BRAKE, STEAM REVERSE and our
SELF-CLOSING LEVER THROTTLE
VALVE.
We have just installed a similar engine
(somewhat larger, 28x42) for the Bell &
Zoller Mining Company at the famous
ZEIGLER MINE, where 8 tons of coal
are being hoisted per trip.
We will be glad to have COAL MEN who
are interested in this class of machinery,
visit these mines and see the performance
of our engines in actual .service.
Ask the ENGINEER what he thinks of
our SELF-CLOSING LEVER THROT¬
TLE and ask us about our HEAVY
DUTY SHEAVE WHEEL WITH RE¬
NEWABLE STEEL LINING.
• LITCHFIELD FOUNDRY tS, MACHINE CO
Litchfield, Illinois
>
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND
41
PHILLIPS MINE AND MILL SUPPLY CO.
PITTSBURGH, PA.
of Col«:o Works BJci v»li3merxt;
There are sufficient Phillips
Dumps already installed
throughout the United
States, Canada, Mexico and
South America to handle the
entire coal output of the
world. Capacity practically
unlimited.
PHILLIPS AUTOMATIC CROSS OVER CAR DUMP
The Simplest and Strongest
Dump on the Market. Can
be operated by common
labor. Guaranteed to work
satisfactorily. Buffer
Springs on horns protect
dump and rolling stock.
$2.00 No. 7294C
Retsof, N. Y . 191
RETSOF MINING CO.
Pay RETSOF STORE CO.
Two Dollars
and charge same against my
labor account.
(The Note)
Put your store on a safe, simple cash basis,
and avoid errors, disputes and save time
ALLISON COUPON BOOKS
will put your mine store on a safe and simple cash basis, prevent loss and disputes accrmng from other
methods. Used by hundreds of mine store companies. Let us send you further particulars,
prices and some sample coupon books.
ALLISON COUPON COMPANY, ; Indianapolis, Ind.
The McM yler Interstate
c
ompany
CLEVELAND, OHIO
NEW YORK CHICAGO
LOS ANGELES LONDON
Many Cranes for fueling
vessels have been installed
by us. We design and build
all types of coal handling and
coal storage plants.
Our guarantees have
always been surpassed in
actual operation.
i
rOAI Dealer’s Blue Book
VUilly VAL/I/I I |3 Established 1886
Issued semi-annually; supplemented monthly. Contains a complete list of Coal
Operators, Coal Dealers and Car Lot Consumers in the United States and
Canada, with capital and pay- ratings. Most complete system in use for the
co-operative reporting of business experience in this line.
COLLECTION LETTERS for the Shipper or Retailer, sent from own office,
calling for remittance direct, will keep slow accounts cleaned up at a minimum
expense. Details on Application
THE J. B. SANBORN COMPANY — Coal Trade Mercantile Agency
440 So. Dearborn Street, CHICAGO 206 Broadway, NEW YORK
I
Are Your Freight Rates Satisfactory?
^ Did it ever occur to you that your competitors in many instances
have lower rates than you, due entirely to the aggressiveness of
expert trafiBc men? Are you discriminated against? Are your
rates unreasonable?
9 We have men m our employ who thoroughly understand these
vexatious trafiBc problems and are prepared to assist you in every
possible manner, such as securing reductions, collecting over¬
charges, etc.
Writm u« of yoar Tra/Kc Troublmt and wm will Advlta You Without Chargm
GENERAL TRAFFIC ASSOCIATION, Inc.
715 14th Street, N. W. Washington, D. C.
Oil and Power Saving Mine Car Wheels
The “Eureka” Wheel
f The “EUREKA” is an Improved self-oiling wheel with a
dust and water-proof valve. Large oil chamber. Exposed
Hnch-pin. No Bolt Caps or Gaskets. Runs two to three
weeks with one oiling.
^ Over 600,000 now in use and we are making 500 per day.
n The HOCKENSMITH-HYATT wheel li equipped with
Hyatt flexible Chrome Steel Rollers. Exposed linch-pin. Saves
50% in power. Runs three to six months with one oiling.
f All made Deep Chilled, of a special charcoal Iron mixture
and thoroughly ANNEALED after casting.
Q Either type of wheel on our ANGLE BAR TRUCE (strong
where others are weak) will effect economies In OIL, POWER
and REPAIRS.
The Hockensmith-Hyatt Roller
Bearing Wheel
WRIXK U® KOR OUR ORRRR OR SEX®:
HOCKENSMITH WHEEL AND MINE CAR CO.
(Pittsburgh District) ::
PENN STATION, PENNA ,
Mention The Black Diamond when writing adverti.sers.
42
THE BLACK DIAMOND.
[December 25
I
Are You Still Delivering
Coal by Team
You are losing money if you are — just
assure as shooting. You are not de¬
livering a single load of coal by team
that could not be delivered cheaper,
, quicker and better by Pierce-Arrow
Motor Truck. This is a sweeping statement, but we have the facts
and figures to prove it. Some of them are contained in our booklet,
“What Piei ■ce-Arrow Motor Trucks are Doing in the Coal Trade.”
It tells about the experience of many of the most successful coal
dealers in the country with Pierce -Arrow Trucks.
If you wish us to make an investigation of your particular propo¬
sition we will submit a definite dollars-and-cents estimate of just
how much Pierce -Arrow Motor Trucks can save you
on your delivery costs.
THE PIERCE-ARROW
MOTOR CAR COMPANY
BUFFALO NFW YORK
The Worm-Gear
All Pierce-Arrow Trucks
are equipped with the
worm-gear drive, which is
a positive guarantee ot ef¬
fective service under the
most difficult conditions.
Mention The Black Diamond when writing advertisers.
No. 26]
THE BLACK DIAMOND.
43
mPLH
The “Marcus” is a horizontal screen that has
a greater capacity per foot of screening surface
than the well known inclined shaker screen.
The “Marcus” is a picking table on which
hand picking is more effective than on the old
style apron conveyor, because the coal is spread
in a thin layer.
The “Marcus” therefore combines in one ma¬
chine a superior screen and a superior picking
table. In each capacity it is the very best de¬
vice we have found for the purpose.
The “Marcus” in the preparation of coal,
has superseded the inclined shaker screen just
as the shaker screen superseded the bar screen.
The cost of a “Marcus” installation, includ¬
ing the tipple structure, is less than the cost of
the old style shaking screen and picking con¬
veyors with tipple structure.
“There is Satisfaction in Using the Best”
Drive Head for Marcus Patent Picking
Table Screen. We are the Sole Licen¬
sees in this Country for this Machine.
ROBERTS AND SCHAEFER CO,
‘Fulfill the Contract”
ENGINEERS AND CONTRACTORS
CHICAGO, U S. A.
‘Satisfy the Client”
On our Superior Box Car Loader, coal is carried full length of this long rever¬
sible conveyor. It gives a perfectly loaded product without sacrificing
strength, durability or capacity for which all CHRISTY Loaders
With only one man
to operate any sized
coal can be loaded
in capacities up to
twenty tons per
minute. Direct
drive for power
t ransmission.
Steam or electri¬
cally operated.
Powerful car puller.
are renowned.
CHRISTY B(R CAR LQADFR CO,
DES MOINES, IOWA
Mention The Black Diamond when writing advertisers.
4-4
THE BLACK DIAMOND.
[December
El^ngineer;^
The J. W. Frazier Company
ENGINEERS
Specialists in Coal, Coke and Ore Handling Plants of Every
Type, Including Foundations, Docks, Power Plants and Terminals
Ten Reasons Why
You Should Retain Us as Engineers when Planning Such Improvements
1 — We prepare preliminary plans and estimates and furnish unbiased opinion re¬
garding the most efficient method of solving your problems.
2 — We prepare complete design drawings and specifications upon which competi¬
tive bids may be canvassed. By this method you are enabled to obtain
quotations, based on ONE specification, and which, therefore, are really
comparable.
3 — We carefully check and approve all drawings before fabrication of material
is started.
4 — We design and superintend the entire installation, including docks, foundations,
power plants, etc.
5 — We provide mill inspection of all material entering into the construction of
your apparatus.
6 — We place a competent inspector in the shop who looks after your interests
during fabrication.
7 — We place a competent field engineer at site of erection, who lays out the work
and guards your interests in every way.
8 — We conduct tests of all apparatus to insure that same is in accordance with
plans and specifications.
9 — We have had years of experience in engineering pertaining particularly to the
mechanical handling of material.
1 0 — We have a large number of successful achievements; also many satisfied
clients to whom we will gladly refer you.
Why Not Grant Us An Interview ?
Mention The Black Diamond when writing advertisers.
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