January 3 1913.

THE COLLIERY GUARDIAN.

19

Christmas holidays. It is many years since coking fuel
commanded such high prices as it has realised during
the last three months of the year 1912. So far as the
coal trade is concerned the new year opens with a more
hopeful feeling than its predecessor did twelve months
ago. Then the market was in a state of painful
suspense respecting the miners’ agitation with regard to
a minimum wage. This question is now disposed of,
and, given a rest from any further labour troubles, the
year 1913 promises to be an active one.

SOUTH WALES AND MONMOUTHSHIRE.

The past year has been a very notable one in many
respects. The first event of importance was the national
strike in March, which greatly restricted shipments both
in that month as well as in April. For the eight weeks
the exports from Cardiff only totalled 745,369 tons, as
against a monthly average of between 1,600,000 and
1,700,000 tons. Similar reductions were also reported
from the other ports in the Channel. Of course, the
arrears had afterwards to be made up, but so scarce was
tonnage all through the year that collieries found it
impossible to overtake them, and considerable balances
were left over for delivery in January and February of
the current year. While the strike lasted prices of coal
went up to phenomenal figures, as much as 42s. 6d. to
45s. being paid for best large steams, and also nearly the
same prices for secondary qualities, including Monmouth-
shires. Small coal for bunkerings also realised from 23s.
to 25s., but after the miners returned to work the prices
fell almost as rapidly as they had advanced. In April,
best coals were obtainable at 21s. 6d., bunkerings at
13s. 6d., and cargo qualtities at Ils. 6d. per ton. The
result of the strike is now too well known to need any
elaboration.

The next thing in importance to the wage question
was the extraordinary scarcity of tonnage. Evidence
from all quarters showed that a great industrial revival
had taken place, and so remunerative were the freights
offered, particularly from the American seaboard, that
shipowners in our own country eagerly sought to take
advantage of them. Freights to the Mediterranean
went up at least 5s. per ton, whilst to the South
American ports even higher increases had to be paid.
Foreign contractors began to limit both their purchases
and deliveries ; and as outputs from the Rhondda and
other mining districts showed a steadily increasing
total, many collieries had frequently to accept very low
prices—at one time as little as 16s. for best coals—from
buyers prepared with prompt boats in order to keep
their pits going. Even when tonnage was available the
lack of tipping accommodation exercised a very detri-
mental effect on the trade of the port, and persistent
efforts were made to induce the dock authorities to take
in hand without delay the provision of better facilities
for loading.

The declaration of war between the Balkan States
and Turkey had but little effect on the market, but as
in the autumn the possibility of other Continental
Powers being brought within the conflict gave rise to
anxiety, there was a rush of orders—particularly from
Russia and Austria—and prices went up considerably.
For several months they had ranged from 17s. to 17s. 6d.;
but before the year closed as much as 19s. 6d. was paid
for best, and 17s. to 18s. for second Admiralties, whilst
small coal for bunkering went up to 15s. 6d. and cargo
qualities to 13s. 6d. and even 14s. per ton. Contractors
came into the market rather earlier than usual, and they
had the satisfaction of being able to congratulate them-
selves upon their foresight. The British Admiralty,
amongst others, arranged for their requirements before
the sudden jump took place; and though attempts were
made to prevent the prices leaking out, it was stated on
good authority they were-unable to buy on the basis of
16s. 6d. to 17s. net for best steams, with 6d. extra for
coals required for the Naval manoeuvres. Many large
contractors who hesitated to place the whole of their
orders in the autumn had afterwards great cause for
regret. As an illustration, the Egyptian State Railways
only bought half their usual quantity in October,
deferring the purchase of the remainder of their
supplies till December, when they had to pay from Is.
to Is. 3d. per ton more than two months previously.
Other contractors were caught napping in the same
way. Freights towards the close of the year showed a
substantial decline, and should there be no further
reaction, it is believed that 1913 will witness almost an
unexampled period of prosperity. With this brief
survey, it may now be interesting to indicate the course
of the market in detail.

January.—When the year opened the controversy on
the minimum wage question waxed fast and furious.
The situation generally was considered so grave that it
had a marked effect on the market. In the first place

the British Admiralty called for the despatch of the full
maximum quantity of coal which under their agreements
with contractors they were empowered to take, which
meant an addition of something like 20 per cent, over
and above the ordinary monthly quantities. In normal
times the Admiralty usually take about 100,000 tons per
month, but very early in January they chartered vessels
for the shipment of something like 400,000 tons of bests
and seconds to the home dockyards and to their foreign
coaling depots. Practically, they swept the market of
all best coals, and as the result of their action a large
number of enquiries were received from private depot
owners not only in the Mediterranean, but in other parts
of the world. Indeed, so great was the rush of orders
that within 48 hours vessels were engaged of an aggre-
gate tonnage of 240,000 tons, whilst within a period of
14 days the number chartered represented a carrying
capacity of 880,000 tons. Naturally, a mighty impetus
was given to freights. In some instances the rates
obtained by shipowners exceeded those even in the boom
year of 1900, vessels being booked to Genoa at 13s., or
4s. 9d. above the maximum of 1910. Marseilles touched
13| fr., or a rise of 3Jfr. within the same period. To
Naples 12s. was paid, an increase of 4s. 9d.; to Savona
12s. 9d., or 5s. 9d more ; whilst Palermo realised 12s. 6d.,
Venice 13s. lOJd., Algiers 13|fr., Alexandria Ils. 3d„
Aden 12s. 9d., and Barcelona 11s. 9d. To South American
ports still more phenomenal advances took place. On
account of something like 100 steamers being tied up
in the River Plate ports, as the result of a railway strike,
the record rate of 24s. 6d. was paid, or 7s. above the
maximum of 1910. A similar figure was obtained for
Rosario, whilst 24s. was paid to Santos. Merchants who
had made c.i.f. contracts with buyers in that part of the
world sustained very heavy losses, running in some cases
in freight and coal to over £10,000. Prices of coal
steadily advanced all through the month. In the first
week not more than 17s. to 17s. 6d. was obtainable, but
before the end of January as much as 19s. to 19s. 6d.
was the ruling rate; whilst second Admiralties advanced
from 16s. 6d. to 18s. 6d. per ton. Many of the middlemen
reaped a rich harvest, for though the demands made
by the Admiralty, the collieries on their list had little
or no coal for disposal, and foreign buyers in need of
supplies were obliged to approach the middlemen, who
were not slow to take advantage of their position.
Most of the business done was for prompt shipment,
though a few operators more optimistically inclined
than others, made contracts for the opening of the
Baltic season at the end of April or the beginning of
May on the basis of 17s. 9d. per ton, or 9d. to Is. more
than they were willing to pay in the previous October.
In consequence of the high prices quoted, the adminis-
trators of the Java railways, who came into the market
for 90,000 tons of Admiralty steams for delivery over
the year, placed tbeir contracts with collieries in
Australia and Japan; whilst the French naval autho-
rities, who had asked fpr tenders for 30,000 tons of
steam coals for delivery at Toulon and Brest, decided
to use locally-made briquettes. Nor were the Welsh
collieries the only ones to benefit from the rising prices,
for considerable business was diverted to the North.
But perhaps the greatest loss to the Welsh collieries
was that sustained through the Navigazione Generale
Italiana going to America for the supply of 100,000
tons of coal. It was some consolation, however, to the
Welsh collieries to learn that the diversion was due not
so much to the price quoted by themselves, as to the
uncertainty which existed as to whether, in the event of
the order being placed with them, it would be executed.
There was tremendous pressure for small coal, and
bunkerings advanced from 9s. to 10s. 6d. and in some
cases even to Ils. Cargo qualities, too, went up from
7s. 3d. to 9s. 3d. In Monmouthshire coals there was a
similar upward movement. Black Veins, which at the
beginning of the month were 16s. to 16s. 3d., closed at
17s. 9d. to 18s. 3d.; Western Valley coals from 15s. 6d.
to 15s. 9d. advanced to 17s. 6d. and 17s. 9d., whilst
Eastern Valley coals went up from 14s. 9d. to as much
as 16s. 3d. f.o.b. Cardiff. The Portuguese Railway
administrators placed a contract with Cory’s Trading
Company for 45,000 tons at 15s. lid. c.i.f. Lisbon or
Oporto. Bituminous coals also advanced 2s. per ton,
fancy qualities being 20s. and No. 3 Rhondda large
18s. Crown patent fuel realised 19s. 6d. per ton.
Owing to the pressure experienced, the shipments for
the month amounted to 2,439,907 tons, as against
2,080,213 tons in January 1911, being an increase of
354,694 tons. This was the largest quantity shipped in
any one month—except that of June 1910—for a period
of five years. From Cardiff alone the shipments were
1,614,769 tons, or an increase of 320,512 tons. The
other three ports in the Channel showed increases of
from 9,000 to 17,000 tons. Italy took no less than
512,991 tons or 127,945 tons more than in January 1911

whilst France, with a shipment of 542,761 tons, showed
an increase of 81,116 tons.

February. — On February 1 notices to terminate
contracts were tendered by the colliers of South Wales
and Monmouthshire with the object of forcing the
concession of a minimum day wage for all classes of
men. Needless to say that with matters at such a
deadlock no forward business was done on ’Change, and
that contractors began to press for full deliveries under
the agreements made in the previous autumn. Ship-
ments for a time were exceptionally heavy, those from
the port of Cardiff alone amounting on two or three
occasions to about 400,000 tons per week. Even these
quantities did not exhaust the outputs sent up from the
pits. In order to provide for the proverbial rainy day
the miners redoubled their efforts at the working places,
and it was no uncommon thing to hear of some of them
earning 10s. a day and over. Unfortunately tonnage
did not come forward quite so plentifully as was
desired, with the result that prices at one part of the
month showed some weakness. Though some of the
coalowners endeavoured to keep up the price of best
Admiralties to 19s. 3d. per ton, they were undercut
by middlemen, who disposed of no mean quantity
at 18s. 6d. to 18s. 9d., whilst second Admiralties were
sold at 17s. 3d. to 18s. per ton. Many buyers exhibited
some anxiety to lay in stocks with a view to future
contingencies, but they were deterred from purchasing.
by reason of the high freights asked. As much as
13s. 6d. to 14s. was paid to Genoa, as against Ils. 9d.
ruling at the end of January. The average freight in
1910 was 6s. 7|d. To Port Said 12s. 6d. was paid, as
compared with 5s. 9d., the average for 1909. From
12s. 6d. to 13s. was paid to Alexandria, and 15s. 6d. to
Venice. There was considerable pressure for small
coal, and bunkerings were quoted as high as 13s., and
cargo qualities at 10s. 6d. to Ils. Towards the middle
of the month shipowners began to be apprehensive as
to loading arrangements, and for any vessel fixed for
loading after the 21st they demanded guarantees that
all coal should be put on board before the end of the
month. This undertaking, however, could not be given,
and tonnage arrivals began to decline. Indeed, so
many vessels were diverted to ports where there might
be an opportunity of securing long voyage charters
that on the 15th of the month the number of vessels
berthed at Cardiff and Barry was only 83, being a
reduction of 50 as compared with the previous week.
Notwithstanding the intervention of the Prime Minister,
the outlook continued so dark that the Cunard Steam-
ship Company, who for some time had been obtaining
supplies from Yorkshire, found it necessary to again
enter the Welsh market, where they managed to secure
from Messrs. Mann, George and Co. about 20,000 tons
of coal, but neither the quality nor the price was
disclosed. Perhaps the most surprising purchase of
the month was that by the British Admiralty, who
according to reports of an apparently liable character
chartered four steamers for the conveyance of 25,000
tons of American coal to Gibraltar or Vigo at, it is
believed, 14s. f.o.b. The freight from Norfolk to
Gibraltar at that time was 20s., making a total charge
for the coal c.i.f. of 34s. Welsh coal of equal value, it
was stated, could have been bought for delivery at
Gibraltar at 32s. or 2s. less, but, apparently, the
Admiralty felt that the uncertainty as to an early
termination of the labour troubles was too great to
permit of their undertaking any risks. Moreover,
many coalowners had already oversold themselves,
and had not another ton to spare. The shipments
from the Bristol Channel ports for the month
amounted to 2,450,603 tons, as against 2,156,398 tons
in February of 1911, being an increase of 294,205
tons. This was a larger shipment than was recorded
in the previous month. From Cardiff alone the
exports were 1,636,765 tons, an increase of 155,441
tons. As the month approached a termination there
was extreme pressure for small coal. Buyers, of
course, knew that all the collieries were beginning to
stock considerable quantities in order to keep their
engines running in the event of a strike taking place
They therefore began to purchase cargoes wherever they
could for shipment to foreign coaling depots, and as
much as 16s. to 16s. 6d. was paid for bunkering, and
12s. 6d. to 13s. for cargo qualities. The Paris-Lyons-
Mediterranean Railway, alarmed at the increasing price
demanded, for Welsh small, sought to make contracts
with German coalowners, and, it was reported, were
successful in obtaining 18,000 tons at 25J fr. delivered
at Paris. In the last week of the month, best Admiralty
large realised 21s., second Admiralties 19s. to 19s. 6d.
and ordinary seconds 17s. to 17s. 6d. For Monmouth-
shire coals also quite fancy prices were quoted, namely:—
Black Vei.isl9s. to 19s. 3d., Western Valleys 17s. 9d. to
18s. 6d., and Eastern Valleys 16s. to 16s. 6d. f.o.b. Cardiff,