February 19, 1915.

THE COLLIERY GUARDIAN.

391

A conference of Scottish gasmaking authorities,
held at Glasgow, has decided to ask the Prime
Minister to receive a deputation,, who desire the
Government to suspend the eight hours day for
miners in view of the seriousness of the position
created by the inadequate supplies of coal for gas-
works. Twenty-four gas authorities, representing
nearly 650,000 consumers, have approved of the
conference decision. The undertakings concerned
carbonise yearly fully 1,500,000 tons of coal.

The increase in the cost of coal in
The London and other parts of the country
Price Of	Las been the subject of much dis-

Coal.	cussion in Parliament, as well as in

the Press. The Government has,
indeed, determined that the matter requires further
investigation, and an enquiry has already been
promised into the causes of the rise of cost in the case
of domestic fuel. It seems, however, to be certain
that this limitation will not be maintained, and that
the enquiry will assume a wider aspect than the mere
cost of household coal.

It may be a matter of surprise to many why any
enquiry on such a matter should be necessary. For
the price coal should not in a general way be governed
by any other laws than those of supply and demand.
But the matter is not by any means so simple as might
appear. Coal prices have always been extremely
sensitive to abnormal circumstances, for the simple
reasons that it is a vital necessity to our national
activities, and that there is at all times comparatively
little margin between scarcity and ample supply. It
is easy to see how this margin may vanish even under
ordinary conditions, and when the present extra-
ordinary conditions, brought about by the war, are
considered, a disturbance of the balance of supply
and demand is still more intelligible.

. In the House of Commons Mr. Asquith uninten-
tionally failed to give a correct impression with regard
to the actual state of things, relying upon figures
representing average prices furnished by the Board
of Trade. Thus he stated that the increase in the
selling price of coal, as compared with last year, was
only 15 per cent. Such figures, however, are misleading,
for the rise in some classes of coal is nearer 100 per cent,
in certain districts. In Northumberland and Durham
prices have not risen appreciably, and, the Continental
shipments being curtailed, there is in this district
plenty of coal available for gas and manufacturing
purposes. But most of this coal is seaborne, and the
London gas companies find ‘ much difficulty in
transport. Thus Dr. Carpenter, speaking at the
half-yearly meeting of the South Metropolitan Gas
Company last week, said that about 80 per cent, of
the ships they chartered for coal transport had been
taken by the Admiralty for the purposes of the
Fleet. The Admiralty, of course, must be first
considered, and, as Mr. Churchill has explained,
the needs of the Fleet are all the greater on account
of the necessity of maintaining a sufficient fuel
reserve afloat. Our whole Fleet is at sea, and
arrangements must be made for rapid coaling under
all conceivable circumstances’; thus a large number
of colliers are kept immobilised so far as the general
coal carrying trade is concerned. The release by
the Government of interned ships has eased the
situation as regards tonnage, but not as regards
freights, owing to the decision to let these ships at
the inflated market rates. It is doubtful, therefore,
whether the gas companies will get much relief
beyond, perhaps, a speedier delivery of coal. This,
however, scarcely affects the supply of household
coal in London, for the balk of this is railborne, and
comes from the Midland and Northern counties.
Over all this area pit prices have risen considerably,
in some cases being over 75 per cent, higher than
last year. It is not necessary here to quote specific
instances, but generally it may be stated that contract
prices, which last summer stood at between 13s. and
14s., stand now at 20s. or more. These are the
figures that largely control the London market price. >
the plain man, however, is unable to reconcile
even these prices with current quotations in London.
Let us see how the London coal merchant stands.

His cost accounts per ton would possibly show the
following items :—-

,	s.	d.

Cost of coal at pit .......  20	0

Bail way carriage..... 7 0

Wagon hire .................  1	3

Loading charges ............. 1	3

Cartage to customer ......... 3	0

Office expenses ............. 1	3

Loss (smalls, &c.) .......... 0	6

34 3

Thus coal bought at the pit mouth for 20s. would
only be sold at cost price at 34s. 3d. in London,
assuming that the above charges are reasonable.
Whether the coal merchants’ standing charges are
as high as indicated above, will depend much upon
circumstances ; but his position is generally better
than is shown, because in most cases he has purchased
his coal on a yearly contract at lowest summer prices.
This advantage is surely his fair profit, and it would
be unreasonable to expect him to forego any part
of it.

We have, therefore, to fall back upon the collieries,
and we have to explain the large increase in the pit
price of coal. Here it must be remembered that the
pit price is only the selling price of the surplus coal
produced over and above contract requirements.
The bulk of the output of the collieries is sold at
contract prices, with no chance to recover anything
due to increase in the cost of production. This
increase has been serious. Iron and steel have gone
up 15 per cent., horse food 25 per cent., and pit
timber 60 to 70 per cent, These are only a few
items out of many that go to increase the cost of
getting coal. The colliery owner, under normal
conditions, looks to the big divisor to lessen his
tonnage costs, but in this instance he is checkmated
by shortage of labour, shortage of hours, and lessened
output. What, then, is he to do ? The only chance
of .covering himself for these adverse and unfore-
seen conditions is to raise the pit prices of his surplus
coal, and as this surplus coal has to bear as much as
possible of the weight of the total increased cost of
production, the result is a rise in price, which to the
ordinary eye may appear out of all proportion to the
actual needs of the case. Thus the pit price of coal,
being the only elastic factor in the situation, bears
the full brunt of the adverse conditions. Sir A.
Markham’s statement in the House of Commons
that the increased cost of production is in general
not more than Is. per ton of total output—even if
correct, is a far heavier burden if it has to be borne
by the current pit sales alone, which form only a small
proportion of the whole output. A bigger output
would therefore be advisable.

In the meantime the Government is very properly
taking steps to enquire whether there is really any
abnormal shortage of output at the collieries. The
absence of many colliers who are serving in the Army
can scarcely fail to produce an effect upon produc-
tion, but this could.easily be remedied by the simple
expedient provided by the Coal Mines Act for
emergency use. We have already expressed the
opinion that this provision should be put in operation.
This step, coupled with certain suggested improve-
ments in regard to delays in railway transport and
retention of wagons, would, we think, produce a
favourable effect upon coal prices. But either alone
would be of little avail, for what can London do with
coal at the pit bank? Sir A. Markham, speaking
from the comfortable point of view of an owner of
large collieries, begged the Government to fix
maximum pit prices—a suggestion which appears to
be too far beyond the region of practical politics to
need further discussion. In any case the season is
approaching when an automatic improvement may
be expected to take place.

In the foregoing article we have
“Ca’Canny” dealt with the general question,
Buttons for without elaborating the numerous
66 Patriots.” causes that have contributed to bring
about the present situation, One, at
least, of these causes, however, deserves particular
attention, because it is a factor that can be removed
without danger'to the-State or the individual.

On the 5th of this month, the Wharricliffe Silkstone
Collieries issued a leaflet to their workmen, of which
the following is a copy :—

To Coal-Getters and Trammers.

The serious shortage of coal which at present exists is
due partly to the war, and the withdrawal of the labour
of coal-getters who have patriotically joined the Colours.

There is, however, no doubt that the full output
possible is not being produced by those who have
remained at home. Colliers are not producing as much
coal as they could (by perhaps, say, 15 per cent.), either
by not working full time, or by not sending out as much
coal as they might when at work.

The management would remind the workmen that
while some men are doing their duty at the front, at the
risk of their lives, it is the duty of those who remain at
home to do all in their power to support the country in
the tremendous struggle in which it is engaged. This
they can do by supplying the necessaries of life (such as
coal, to our fellow countrymen, and keeping our manu-
factures going, and the employment of other workers
possible.

This is one way in which England expects that every
man will do his duty.

We have reason to know that many large collieries,
in a position to dispose of their entire output, are in
an even worse position. In last week’s issue of the
Colliery Guardian we reprinted a letter which has
been addressed to the workmen’s representatives on
the Cumberland Conciliation Board from the masters*
secretary, in which a similar complaint was made.
The initiation of a “ca’ canny” policy at this crisis
in the affairs of the nation is, beyond all expression,
treasonable, but we can draw no other conclusion
than that the miners’ leaders and those supporters
of the “new socialism ” who have turned a deaf ear
to the entreaties of the recruiting sergeant, are
conniving at such a policy.

The price of coal to the consumer depends
essentially upon three groups of factors—the cost
of production, the available supply (in other words,
the output), and the means of transport. The last
of these has been dealt with above, and it is generally
acknowledged that an amelioration of transport
facilities can only be brought about gradually, and
with difficulty. It is a problem, however, that is
influenced to but a remote degree by. the cost of
working. But it is a commonplace that working
costs per ton, in which in normal circumstances the
labour factor reaches as high a proportion as 70 per
cent., increase rapidly as the output declines. The
workman has an object lessdii in his own household :
given a certain standard, rent, rates and domestic
necessitiesmustbe paid for, whether earnings are large
or small; none of them are capable of much com-
pression, and when the cost of prime necessities
rises, as it now has, it can only be met by
increased wages or labour. The employer is in
precisely the same position : if he cannot improve
his out-turn to meet the increased, burden of wages,
materials, taxes, &c., he must endeavour to obtain a
higher price for his coal.

Let us take the labour factor alone. In his state-
ment in Parliament last week, the Prime Minister
referred to the diminished volume of labour available
at the mines as a factor “ which has had a great deal
to do with the rise in the price of coal.” At the same
time he made the following extract from the recent
return of the Board of Trade':— " ’

The quantity of coal at .present being raised is not
known, but a considerable reduction can be inferred from
the figures relating to employment. By December of
last year 13’9 percent, of those employed in July in coal-
mining were known to have joined the Forces, arid their
places have been filled to the extent of 3’4 per cent, only?
leaving a net reduction of 10*5 per cent. As it is likely
that on the whole the stronger and better class of men
have enlisted, there is no doubt that the doss in working
efficiency is greater than the actual figures themselves.

This record is a great credit to the mining industry,
but coal is not only one of our greatest national assets,
of vital importance to our Navy, but . is a common
necessity to the poorest subject.. It has been .impos-
sible, unfortunately, to fill the places of the men who,
in the service of their country/have left a calling at
no time overburdened with a supply of surplus labour,
and the proportion that is left has been incapable of
maintaining the general average of skill and energy,
one result being a relative increase in the number
of workmen who fail - to earn the minimum rates of
wages. ’’t "	’ ■ . .1.

, ; It is beside the point to state, as' do some of the
Labour men, that there are collieries actually short of