34

THE COLLIERY GUARDIAN.

January 7, 1916.

Company, and the Bute-Merthyr Colliery to the United
National Company, which is now one of the largest con-
cerns in South Wales, and whose output before this latest
acquisition amounted to upwards of three million tons
per annum. Considerable dissatisfaction was expressed
at the attitude of the miners with regard to the Whitsun-
tide holidays. Ignoring the request of their leaders to
take only one day, they took the second day in many
cases, with the result that on Tuesday some large
collieries did not start at all, and even on the Wednesday
there was a heavy percentage of absenteeism. To add
to the difficulties of restriction of exports, there began
to be a shortage of tonnage, and freights to Genoa
advanced to 32s. 6d. per ton, with a corresponding rise
in other directions. The paucity of supplies compelled
the Italian authorities to place their orders elsewhere,
and it was reported that further huge contracts had been
placed in America. Middlemen in a position to take
their usual contractual quantities reaped a rich harvest,
and it was not infrequently alleged that many mer-
chants were in the happy position of making profits, in
some instances, of thousands of pounds a week.

June.

The decision of the Italian Government to take part
in the war had a considerable effect on the market, and
the restrictions which had previously prevailed with
regard to shipments to that country were removed. At
the commencement of the month prices were firm, but
at a later period, owing to the difficulty of arranging
shipments with the Board of Control, there was a slump
in almost every department. Hitherto, the greatest for-
bearance and patience had been exercised by the trade,
but there was a growing feeling that there was too much
red tape, and it was almost impossible to secure per-
mission for export to South America and Spain. The
result was that market operations were practically
entirely confined to the Allied countries and British
possessions. Ordinary steams, which at the end of
May commanded 34s. to 35s. per ton, receded to 28s.
to 30s., and it was no uncommon occurrence to see a
variation of 3s. or 4s. per ton in the same grade of coal
in a single day. Best bunkers, which opened at 22s. to
22s. 6d., gradually declined to 21s. in the middle of the
month, whilst at the end not more than 16s. 6d. to
17s. 6d. was obtainable for cargo qualities. This state
of affairs in great measure was caused by the fact that
many steamers were held up at French ports, and there
was a considerable lack of tonnage. Monmouthshire
coals, which at the beginning of the month realised any-
thing between 31s. to 33s. 9d., dropped to 23s. to 30s.,
according to variety, and owing to the rapid accumula-
tion of stocks, many collieries had the greatest difficulty
in keeping going. Representations were made to the
authorities, and the Admiralty took up a number of
cargoes that were suitable for Government purposes, and
this to some extent relieved the congestion. There was
little contractual business during the month. The Great
Northern Railway of Ireland came into the market for
50,000 to 100,000 tons of locomotive coals, for delivery
over the year at the rate of 2,000 tons a week from
September, and the bulk of the business, as in former
years, was secured by Monmouthshire firms. The
Egyptian State Railways also invited tenders for 360,000
metric tons of Welsh or American coal for delivery at
the rate of 50,000 tons a month, the only stipulations
being that the Welsh coal was to be ordinary colliery
screened, whilst the American coal was to contain 35 to
40 per cent, of volatile combustible matter, and not more
than 6 per cent, of ash. For many years the bulk of
this business had remained with Monmouthshire firms,
and this was the first occasion on which the authorities
had intimated their willingness to accept American
tenders for the whole of their requirements. The result
of the negotiations was not known until August, and
then it was announced that only a portion of the contract
had come to South Wales, the successful competitors
being Messrs. Watts, Watts and Company and Messrs.
Milburn and Company. The quantities and prices were
not disclosed, but it was reported that a considerable
portion of the business had gone to America. Mr. T. E.
Watson, the president of the Cardiff Chamber of Com-
merce, made the interesting statement that the war
bonus of 17| per cent, which had been granted by Lord
St. Aldwyn’s award, had meant an increase of Is. lOd.
per ton on large coal, and Is. 2d. per ton on through
coal. He further added that every collier in the employ
of his firm was earning wages of not less than 9s. 4d.
per day, and in some instances the men received
as much as 17s. per day. Unfortunately, high wages
did not tend to increase regularity of work, for whereas
in the early part of the year the absenteeism was 11 per
cent., since the war bonus had been declared it had
gone up to a little over 14J per cent.

July.

This was probably the most trying month of the
whole year, owing to the difficulties which arose in con-
nection with the renewal of the Conciliation Board
agreement. The miners sought an alteration in the
standard, which the owners resisted, owing to the
abnormal conditions prevailing. Arbitration was offered,
but this was rejected by the men’s leaders, and the
Government intervened. Protracted negotiations took
place, both in London and Cardiff, and a conference of
delegates decided to stop work unless the agreement
was signed by a 'certain date. The leaders advised the
men to continue operations on day-to-day contracts,
pending a settlement, but some confusion arose, and
upwards of 60,000 men actually came out on strike.
The Government issued a proclamation declaring the
South Wales coal field a munitions area, and this did not
tend to improve the situation. Further stoppages took
place, and in the middle of the month it was computed
that upwards of 180,000 men were idle. The position
became exceedingly serious, and Mr. Lloyd George, Mr.
Runciman, and Mr. Henderson visited Cardiff with the

object of overcoming the difficulty. After prolonged
conferences an agreement was come to, and the men
returned to work, but not before the evil effects of the
strike had become manifest in many other industries
engaged in the manufacture of munitions. The rapid
consumption of the accumulations of coal caused a rise
in prices in almost every department. Ordinary steams
which opened at 25s. to 26s., closed at the end of the
month at 26s. to 27s., best bunkers were 23s., cargo
qualities 19s. to 20s., Monmouthshires 25s. to 31s., No.
3 Rhondda large 27s. to 28s., and No. 2 25s. Washed
coals also advanced, nuts realising 30s., and peas 28s.
per ton. In the early part of the month the refusal
of the Admiralty authorities to grant permission to
export caused much irritation. Although the .sidings
were blocked with coal, the Government declined to
issue licences, with the result that a number of collieries
were brought to a standstill owing to shortage of wagons.
Prices were much affected. For instance, dry coals,
which in the middle of June commanded as much as
36s. a ton, declined fully 10s. 'a ton, and other descrip-
tions were also lower. The Government, however, with
inner knowledge of the seriousness of the labour situa-
tion, increased the embargo on exports in all probability
with the object of accumulating supplies, otherwise the
position at the end of the settlement would have been
much worse than it really proved to be. The only con-
tract of importance during the month was the Egyptian
Irrigation business, of which only 60,000 tons was placed
in South Wales, and 50,000 tons in America. The
cessation of work in the coal field had a detrimental
effect on the shipping industry, the consequence being
that many vessels were diverted from South Wales to
America. Exports were lower.

August.

In response to the request of the Government
authorities, backed by their own leaders, the miners only
took one day’s holiday, and although in a few’ instances
the absentees numbered 25 per cent., in the majority of
cases from 85 to 90 per cent, of the men returned to work
on the Tuesday. Throughout the month business
remained in a very unsatisfactory condition, owing to the
dearth of tonnage, and the new regulations of the Coal
Export Committee, which provided that coal must be
sold direct by the exporter to the consumer, and meant
practically that the middleman at the port of destina-
tion was eliminated altogether. The diversion of
steamers continued, and many vessels which should have
been engaged in carrying coal from South Wales, were
occupied in the transport of cargoes between North and
South America, and between the States and destinations
in the Mediterranean. The market generally showed a
declining tendency. At the beginning of the month
ordinary steams realised 30s. to 32s., but at the end not
more than 24s. to 25s. was obtainable. Best bunkers,
which were 22s. to 23s., dropped to 20s. to 20s. 6d., and
cargo qualities, which were 18s. 6d. to 19s., did not
command more than Ils. to 12s. per ton. Dry coals,
at 24s. to 25s., showed a fall of 7s. per ton, and there was
a decline of 3s. to 4s. in washed coals. Monmouth-
shires, which in the first week were selling at 28s. to
31s., did not realise more than 21s. 9d. to 23s. 9d. at
the end of the month. In No. 3 Rhondda bituminous
coal there was not much fluctuation, but in No. 2 quali-
ties there was a fall of 7s. per ton, the quotations closing
at 19s. to 20s. Pit wood prices were satisfactory, and
supplies were obtainable at 25s. per ton. Considerable
contract business was entered into during the month.
The Irish railways were in the market for 60,000 tons of
Monmouthshire coals, and there were enquiries by the
Spanish and Greek naval authorities for 50,000 tons each,
a 'Similar quantity of patent fuel for the French rail-
ways, 46,000 tons for the Algerian railways, and 20,000
tons for the North of Spain railways. For the first time
it became possible to draw a comparison between the
exports of coal under war conditions in corresponding
periods. The shipments from the Channel totalled
1,248,897 tons, against 1,109,167 tons in August 1914, or
an increase of 139,730 tons. In consequence of the
recommendations of a Royal Commission to limit the
profits on house coals, a reduction was made in South
Wales of about 5s. to 7s. a ton. For some months the
price had remained stationary at 30s. per ton at pit
head, but from the end of the month the price was fixed
at 23s. to 24s. per ton for best qualities.

September.

There were more labour troubles this month, owing
to the refusal of the miners to accept Mr. Runciman’s
award. The two points at issue were the inclusion of
the enginemen, stokers, and craftsmen in the bonus turn
clause of the Conciliation Board Agreement, and the
fact that the award did not contain any clause making
the advance in wages retrospective. The dispute led
to a temporary stoppage of about 30,000 men in
Monmouthshire and South Wales, but after negotiations,
in which Mr. Lloyd George and Mr. Runciman took
part, a settlement was arrived at. The men obtained
all they asked for with regard to the first point, but on
the second it was mutually agreed that the wages
advance should be retrospective to August 21. As a
result of the joint audit of the coal owners ’ books for the
three months ending June 30, the miners’ leaders made
an application for an increase of wages amounting to
12J per cent, on the new 1915 standard, or 18| per cent,
on the 1879 standard, or a total of 96J per cent, on the
latter standard. The owners made a counter offer of 5
per cent., which was declined, and the services of Lord
St. Aldwyn, as independent chairman, were requisi-
tioned. As a result, his lordship granted the increase
asked for, but this decision had no appreciable effect
on the market, and was received with equanimity. The
coal owners, however, complained that although the
selling price of coal had advanced, the extra cost of
production was such that instead of making increased
profits, some of them had actually been losing money,
and this fact was borne out later by the passing of the

dividend of some of the most important collieries in the
South Wales coal field. As a result of the accumulation
of stocks, quotations again exhibited a declining
tendency, and at the close of the month, ordinary steams
were 21s. to 21s. 6d., or Is. 6d. to 2s. 6d. lower; best
bunkers, 15s. to 16s. (3s. easier); and cargo sorts, 8s. to
9s. (3s. cheaper). Dry coals at 24s. to 25s. showed no
alteration, but there was a slight advance in washed
coals. Monmouthshires at 20s. 9d. to 23s. 3d. were
from Is. to Is. 6d. down, and there was a drop of 2s.
in Rhondda bituminous. Pit wood advanced from 30s.
to 37s. per ton. The most important contract during
the month was that of the Paris, Lyons, and
Mediterranean Railway, which is generally looked upon
as a probable indication of the normal prices during the
ensuing period. The tenders asked for were for 400,000
tons of small coal, and 200,000 tons of patent fuel, and
the business was divided between Messrs. Pyman,
Watson and Company, the Federated Coal and Shipping
Company, Messrs. Tabb and Burletson, and Messrs.
Franklen, Thomas and Company. Messrs. C. L. Clay
and Company also received an order for 30,000 to 50,000
tons for shipment from Port Talbot. As usual, the
prices were not disclosed, but it was currently reported
that they were on the basis of 16s. 6d. to 18s. per ton
f.o.b. There were stipulations in the contract as to the
quantity of ash, with penalties of half a franc per ton
on any quantity between 9 and 12 per cent. For- the
patent. fuel business, the Crown Company received
50,000 tons; the Arrow Company, 10,000 tons; Swansea
makers, 45,000 tons; and the remainder with French
fuel works. The Cardiff prices were stated to be
between 27s. and 29s. per ton. For 46,000 tons of fuel
for the Algerian State Railways, the contract was
divided between the Arrow Company and Messrs. L.
Gueret and Company.

October.

The principal feature of the month was the abnormal
rise in the freight market. Complications in the Near
East had the effect of withdrawing all Greek tonnage,
which was ordered to home waters. There was, in
consequence, an increased scarcity of steamers available,
with the result that freight quotations went up by leaps
and bounds, in many instances the advance being 300
per cent, since August. Marseilles increased from 17 fr.
to 51 fr., Genoa options 16s. to 42s. 6d., Honfleur 9s. to
15s., Bordeaux 10 fr. to 27-J-fr., Gibraltar 13s. 3d. to
28s., Algiers .17 fr. to 44 fr., Port Said 22s. 6d. to
46s. 3d., and Alexandria 20s. to 45s. The shortage of
tonnage was so acute that temporary stoppages took
place at many collieries, and the market, in consequence
of accumulation of stocks, showed an easier tendency.
Quotations at the end of the month were as follow :—
Ordinary steams, 18s. to 19s.; best bunkers, 10s. to 12s.;
cargo qualities, 6s. to 8s.; dry coals, 23s. to 24s.; nuts,
22s. to 23s.; peas, 20s. to 21s.; Monmouthshires, 17s.
to 19s.; No. 3 Rhondda large, 21s. to 22s.; No. 2, 16s.
to 17s.; and patent fuel, 27s. 6d. In some instances,
small coal changed hands at 5s., and at these figures
several collieries resorted to banking rather than release
their output. The scarcity of ships had an appreciable
effect on the pit wood market, which advanced from 37s.
—38s. to 43s. 6d.—45s. During the' month the pro-
posal of the colliery owners to restrict the terms of
credit from 30 days to 14 days was discussed at a largely-
attended private meeting of the Cardiff Chamber of Com-
merce, and resolutions were passed pledging the
members to oppose the innovation by every possible
means.

November.

The tonnage scarcity continued throughout the month,
and stocks of coal accumulated to such an extent that
some thousands of men were rendered idle owing to lack
of wagons. Out of 4,500 British-owned vessels engaged
in the coal and general carrying trade, it was estimated
that no fewer than 2,000 were employed on Government
work, and this was the main cause of the shortage of
steamers. A landslide in the- Panama Canal also held
up a number of Cardiff steamers, w’hich had to proceed
round the Horn in order to complete their voyages.
Freights still advanced, and in some cases ship owners
were demanding five times as much as was paid in
pre-war times. The position became so serious that
representations were once more made to the Govern-
ment, the result of which was that regulations were
framed prohibiting British-owned vessels from trading
from one foreign port to another foreign port without
a special licence, and this, it was believed, would have
the effect of diverting into British waters a large amount
of tonnage, which had latterly avoided this country
altogether. The announcement had a stimulating effect
on the market, but prices generally were not much influ-
enced. Ordinary steams remained stead at 17s. 6d. to
19s., and Monmouthshires were 16s. to 19s., or a
fractional decline in the minimum quotation; best
bunkers were unaltered at 10s. to Ils., but there was a
slight improvement in cargo sorts to 7s. 6d.-8s; washed
coals were a shade easier, nuts being 24s. to 25s., and
peas 17s. 6d. to ,18s. 6d. A sharp spell of dry, frosty
weather sent up the price of bituminous coals, No. 3
Rhondda large being 23s. to 24s., or about 3s. dearer;
No. 2 qualities remained unaltered. Patent fuel still
further declined to 24s.-25s. Pit wood, on the other
hand, became more difficult to obtain, and rates
advanced to the abnormal figure of 52s. 6d. per ton.
As a result of the joint audit of the coal owners’ books
for the period ending September 30, the owners applied
for a reduction in the rate of wages, of 5 per cent., and
this concession was allowed on arbitration by Lord St.
Aldwyn.

December.

In the first week of the closing month of the year
there was a marked improvement in prices, and the
market assumed a more cheerful tone than had prevailed
for several months. Orders came in freely, with the
result that many collieries were fully booked for a con-