32

THE COLLIERY GUARDIAN

July 7, 1916.

Notes from the Coal Fields.

[Local Correspondence.]

South Wales and Monmouthshire.

Important Amalgamations—Advance in Colliery Shares—
Uneasiness among the Miners—Subsidence in Mining
Areas—Priority in Supply of Coal—Costs of Production
in the Coal Trade—Hydraulic Stowage Condemned by
Sir A. Markham—Mythical	“ Coal Barons ”—Lord

Rhondda and Ebbw Vale Company—Pitwood Importers'
Deputation—Bunkers and Cargo—New Mediterranean
Freight.

A fusion of interests of two of the largest South Wales coal
companies has been brought about this week. The Con-
solidated Cambrian Limited, acting an conjunction with
Lord Rhondda and Mr. A. Mitchelson, have made an offer
to purchase the entire ordinary share capital of Messrs. D.
Davis and Sons Limited, involving nearly £2,000,000. They
have secured a controlling interest in that company. Mr.
Frederick L. Davis, who has for many years been the chair-
man of the company, and Messrs. T. Vivian-Rees, Jules
Vasse, Leonard Warner, and J. Bell White are retiring from
the board, but Mr. Lewis F. Davis, the son of the retiring
chairman, and Mr. David Hannah, the consulting engineer,
will continue as directors. The company passes under the
control of Lord Rhondda, who has accepted the chairman-
ship, the other new directors being Messrs. F. S. Cartwright,
Leonard W. Llewelyn, A. Mitchelson, and Peter H. Thomas.

The elimination of competition and the advantages result-
ing from a uniform sales policy should benefit materially both
Messrs. D. Davis and Sons and the Consolidated Cambrian.
The joint production of steam coal from the pits controlled
by the respective companies amounts under normal condi-
tions to approximately 5,000,000 tons. The directors of
Messirs. D. Davis and Sons issued a circular to their share-
holders, in which it is stated that the chairman and his
family and friends have sold the shares they held in D. Davis
and Sons to the group controlled by Lord Rhondda embracing
the Consolidated Cambrian and Messrs. Mitchelson and Com-
pany, of Cardiff. The chairman, Mr. F. L. Davis, Capt.
Bell White, Mr. T. Vivian Rees, and Mr. H. L. Warner
retire from the board. Lord Rhondda takes the place of the
chairman, and Mr. L. W. Llewelyn and Mr. F. S. Cart-
wright are elected on the board. Mr. D. Hannah and Mr.
F. Davis, junr., retain their seats on the board. The Con-
solidated Cambrian controls and owns six collieries, with an
output of 3,000,0'00 tons of coal per annum, which, with the
additional output now acquired, will be increased to
5,000,000 tons.

The shareholders of Messrs. D. Davis and Sons will be
offered 47s. 6d. per share for their entire holding. The
amount of money involved in this deal will be virtually
£2,000,000. Lord Rhondda said to a Press representative :
“ The new combination will naturally reduce competition and
tend towards more close alliance, but it is not in any way
aimed, as has been suggested, against the new Triple Indus-
trial Alliance. No shipping interests are associated with the
new arrangements. The discussions which have led to the
new development only arose during the last 10 days, and
have been brought to a successful conclusion very quickly.”
It is stated that the circular issued by the new board will
declare an interim dividend at the rate of 20 per cent, forth-
with, and a bonus of one share for two in ordinary shares.

During the w?eek rumours of the amalgamation caused a
remarkable advance in certain share values. D. Davis and
Sons (Ferndale) £1 shares, listed at 37s. 6d., rose to 48s. 6d.,
and Cambrian Consolidated advanced from about 34s. to 41s.
Cynon Colliery shares advanced from 29s. to about 35s. 6d.
The secret of the negotiations was well kept, London being
the scene of the operations, and consequently the speculators
on ’Change were somewhat in the dark. Some months ago
D. Davis and Sons were quoted at 30s., and Cambrian below
£1.

One of the miners’ leaders (Mr. Geo. Barker), speaking
before the Monmouthshire Western Valleys miners’ council
on Monday, is reported to have dealt with this question of
amalgamation. He referred to the fact that Ebbw Vale had
united with Griffin-Nan tyglo, and more recently with
Powell’s Tillery, and said that as the capitalists were uniting,
the workmen must do the same thing, for some of the largest
collieries in the district would be controlled by one company,
whilst the workmen were scattered about in various districts.
He strongly recommended that the matter should be fully
considered by the miners, and advised meetings to be sunn
moned representing all the collieries in Monmouthshire.

Negotiations which have for some time past been current
between the Ebbw Vale Company and Messrs. Beynon and
.Company with the Powell’s Tillery Company have reached
,conclusion. The two first-named obtain a controlling
interest in Powell’s Tillery. The output of the colliery was
last year about 800,000 tons, considerably below the total in
normal times. The management passes to the Ebbw Vale
-Company, and the sales agency will go to Messrs. Beynon and
Company, bringing the total marketing of that firm up to
the immense quantity of nearly 6,000,000 tons per annum,
Messrs. Beynon and Company being now sales agents for
Ebbw Vale, Newport, Abercarn, Fernhill, and the Griffin-
Nantyglo. The directors of Powell’s Tillery retire, and the
new board will be representative of the purchasing interest.
The total nominal capital of Powell’s Tillery in ordinary
shares and debentures is about £200,000.

The Risca council has before it a motion as to liability for
subsidence in the mining area. This matter has previously
been raised in the same locality, and carried forward to a
motion in the District Councils Association, where it was
discussed. The idea of the present movement seems to be
that after the question has been raised at Risca it shall be
brought formally before other local councils.

•Speaking on Friday -at the meeting of the Tredegar Com-
pany, Lord Aberconway (the chairman) referred to a
decrease in output amounting to 132,000 tons. He was sorry
that, partly owing to high wages and a large percentage of
absentees, there had been bad work. Men, if they did their
duty to the country, would be working more time instead of
less, while other people were giving their best to the service
of the State; but in the coal trade those considerations did
not seem to influence the men in every part of the country.
The cost of stores and pit wood was 53 per cent, above the
previous year’s cost, and, in addition to that, there was the
advance of wages. Since the latest increase wages were more
than double the old standard rates. When the 1915 wages
agreement was made <it was hoped that it would be loyally
carried out by both parties, and the employers had loyally
carried it out; but the Government, as a result of agitation
.amongst the men, conceded the men’s demands without any

enquiry and gave them an extra 15 per cent, in absolute
defiance of their own agreement. Nothing appeared to be
certain, whether in writing or legislation. They never knew
from day to day what changes would come to affect their
trade. Speaking of the very heavy obligations owing to the
excess profits tax, he said there was less and less incentive to
keep costs on a low scale when the greater part of their
excess earnings were taken by the Chancellor of the
Exchequer. In the Oakdale Colliery 53 per cent, of the
actual profits—not excess profits—had gone to the Treasury,
and in the Markham Colliery 34 per cent. At the Oakdale
pit the profits for the year amounted to only £6,000, or some-
thing like 2|d. a ton on the total output, while they were
paying the men no less than £4,500 per week in wages. That
showed that practically the greater part of the increased earn-
ings went to the men. Lord Aberconway referred to market
quotations of coal that appeared in the newspapers. These,
he said, misled the public and the miners, and were largely
responsible for the labour trouble constantly cropping up.—
In reply to a question, Sir A. Markham said that to instal
hydraulic stowage would mean heavy losses. He had
inspected the system in Germany, France, and Belgium, and
the lowest cost of working a system was 3s. a ton. If they
adopted the system, in a few months their profits would
disappear.

Mr. J. W. Beynon, one of the directors of the Ebbw Vale
Company, speaking at the shareholders’ meeting, said that
the South Wales coal owners did not make huge fortunes.
The ” coal baron ” existed only in the fancy of the poetic
penny-a-liner. He was afraid the general public had been
led away by quotations in the Press as to current value in
South Wales coal, and that they were apt to imagine that
these prices applied to the whole output. The country was
faced with a serious shortage of coal, for whilst consumption
had increased, the output had decreased by several millions
of tons. Referring to the threat of a strike in the coal trade,
he said the consequence would have meant the total paralysis
of the Navy; but such a threat could find no place in the
mind of a sane man.

The chairman (Sir C. Allen) pointed out that the burden
of local rates and workmen’s compensation for the year repre-
sented 9J per cent, dividend on the ordinary shares. Referring
to the purchase of property in Northamptonshire, he said that
they intended to raise 10,000 tons of ore per week from their
mines in that county. The Ebbw Vale undertaking would
soon reach an ideal stage of consolidation as one of the few
iron and steel concerns so self-contained as to possess all
British raw materials necessary for the carrying on of its
business without having to import a single ton.—A dividend
of 12J per cent, on the ordinary shares was declared, and
an extraordinary meeting of the shareholders then authorised
an issue of 200,000 additional shares of £1 each.

It is most satisfactory to note that the condition of affairs
in respect of Swansea Harbour Trust is improving, and so
far from needing £35,000 from the Corporation under its
guarantee, intimation has been given that the Trust will
require only £20,000.

Lord Rhondda contradicts a statement to the effect that he
had resigned his directorship in the Ebbw Vale Company
purely for reasons of his own. He states that, on the con-
trary, his retirement was due to difference of opinion.

The pit wood importers from South Wales have had an
interview at the Ministry of Munitions, the gentlemen wTho
attended being representative of importers who are not on
the committee which supplies Admiralty collieries. These
outsiders import, it is estimated, about two-thirds of the whole
quantity required by South Wales; and the subject upon
which they approached the Ministry was the fixing of
minimum rates of freight and the adoption of a uniform
charter. The outside merchants feared that they would be
at a disadvantage should they agree to minimum rates of
freight for neutral tonnage if the importers who were mem-
bers of the committee obtained French or British tonnage at
lower rates, seeing that the inside merchants, in addition to
supplying the Admiralty collieries, also compete in the open
market with those who are outside. An assurance was given,
on behalf of the Ministry that no such outcome need be
feared.

The subject of bunker coal shipped as cargo to French
ports came up recently before the Central Committee in
London, which represents coalowners, shipowners, and
exporters, this being the committee appointed to carry
through arrangements for exports to France. Sir D. M.
Stevenson was in the chair, with Mr. T. J. Callaghan (of
Cardiff) as vice-chairman. An executive committee, con-
sisting of one delegate from each of the three interests in
every district was chosen, and also a chairman’s committee,
which would consist of Sir D. M. Stevenson, with Mr.
Callaghan and Mr. T. Evans (of Cardiff), and Mr. George
Renwick, of Newcastle, to deal with matters of emergency.
At this meeting the Central Committee agreed that bunker
coal, when shipped as cargo to French ports as cargo, did
come within the scheme, and that therefore limitation of
freights and prices did apply. With regard to bunker coal
supplied in Bristol ports to steamers loading coal for France,
the rate shall not exceed 7s. 6d. above the schedule prices.
The clause in the scheme which governs brokerage was not
altered, so that in all districts owners will pay to exporters
one-third of the 5 per cent, brokerage. It is stated that a
basis of limitation in the price of patent fuel has been practi-
cally arranged, but as to coke the quection both of prices and
freight was still in discussion. Representatives of South
Wales, in addition to the gentlemen named, were Messrs.
T. E. Watson, P. Miles, Evan Williams, Cleeves, P. Cook,
J. T. Duncan, L. Handford, W. Wynne, R. O. Sanderson,
H. J. Marshall, O. L. Harris, Willoughby Hawkins, and
F. Gibson. French representatives were also in attendance.

The Powell Duffryn Company have contributed £1,000
towards the extension of Cardiff Hospital, this making nearly
£34,000 out of the £50,000 required. It will be remembered
that the scheme for extension was initiated by Sir W. J.
Thomas, of the Bedwas Colliery Company.

An estimate made in Swansea as to the return upon anthra-
cite sold at 43s. 6d. per ton yields the result that at the
maximum of 115 fr. scarcely any profit would ensue when
freight rate is 24s. 6d. This colculation, however, allows
8 fr. for demurrage, trading expenses 1-50, extra discharging
1-50, and other outgoings, including 3 per cent, profit, the
total shown being 116-45 fr.

As from July 15, the scheme for limiting freight rates will
be extended to the Mediterranean on a basis of 62s. for
Marseilles.

The local committees who have in charge the matter of
arranging coal supplies and tonnage will have fixed rota of
daily sittings, and the committee in France will, it is
expected, be ready by July 15. The matter of licences for

export of coal will come under supervision of the local com-
mittees before being sent on to the war trade department.

A notice has been posted on Cardiff Exchange pointing out
that one condition on which owners of neutral steamers could
obtain facilities for supply of bunkers is that they should not
sell or time-charter any of their vessels without the previous
consent of the Government. It appears that certain charterers
have been sub-chartering without the shipowner’s knowledge,
and consequently without the consent of the Government
having been previously obtained. The suggestion is made
that provision should be inserted in each charter to the effect
that a vesse1 shall not be sub-chartered without such previous
consent.

The fourth session of the South Wales and Monmouth-
shire School of Mines (Treforest, Glamorgan, and Crumlin)
will commence on October 3. The entrance examination in
joint diploma mining course, colliery engineering course, and
chemical engineering course, will commence on Tuesday,
September 19. Candidates must forward their names not
later than September 15. Particulars of the courses, part-
time courses, and apprenticeships, may be obtained from the
principal, School of Mines, Treforest, Glamorgan.

Northumberland and Durham.

New Magistrates—Fatal Lifting Strain—Galas for Aged
Miners' Homes—Coal in Railway Embankments—A
New Organisation — Representatives at Federation
Meeting.

Mr. J. Cairns, financial secretary of the Northumberland
Miners’ Association, has been added to the Commission of
the Peace for Newcastle. Mr. H. Shaw, secretary of the
Newcastle Chamber of Commerce, who has done yeoman
service for the local coal trade, especially since the outbreak
of war, has also been appointed a magistrate.

At an inquest upon James Carlin, a hewer employed by
the Bearpark Coal and Coke Company Limited, it was
stated that deceased, who was working single-handed taking
out a pillar, had just filled his first tub and had gone out
for another. He went of his own accord, and to expedite the
work. There was a sleeper at the plate ends, and Carlin and
a putter lifted the full tub, which weighed 16 cwt., over it.
It was then that Carlin collapsed and fell. The place was
high enough to take in a pony. The post-mortem examina-
tion revealed the fact that Carlin died from cerebral
haemorrhage, due to unusually high blood pressure caused
by a sudden and severe strain of the heart. The doctors
were agreed that the lifting of the tub would be sufficient
to cause the strain, and the jury returned a verdict in
accordance with their evidence.

The officials of the Durham Aged Mine Workers’ Homes
Association have this year decided to pursue the same course
in regard to raising money as was followed last summer. In
the ordinary course of events, a very substantial sum is
collected at the miners’ annual gala, but, as this has been
abandoned until after the war, it has been decided to hold
local galas in the various mining centres. Band pro-
cessions are to be organised in order to aid the sale of
flowers, which is, of course, the item of principal importance
to the association. There will be, also, the usual other gala
attractions.

In these times, when small coal is bringing anything up
to 35s. per ton, a railway embankment composed largely of
this valuable article may seem to be an extravagant and
wasteful investment, but many such embankments are still
in use in the North of England. One of them, owned by
the North-Eastern Railway Company Limited, at Bly th, was
the cause of a case heard before Mr. Justice Shearman at
Newcastle Assizes last week, when the owners claimed
damages from the Blyth Gas Company for negligence and
trespass, as a result of which, it was alleged, the embank-
ment caught fire. Mr. E. Shortt, K.C., for the plaintiffs,
stated that damages were claimed in respect of injuries to
the embankment and a bridge, caused by fire, the allegation
being that the fire originated in and was caused by the
retorts and furnaces belonging to defendants. The railway,
which was constructed in the ’forties, originally belonged to
the Blyth and Tyne Company, but was taken over by the
plaintiffs in 1874. The embankment was still as originally
constructed, and the lowest stratum was composed of small
coal, covered by a layer of sandy loam, then coal and sand
mixed, and finally ballast. In May 1914 defendants
extended their retort house, and, in order to do so, exca-
vated the ground running up to the retaining wall of the
embankment. About nine months afterwards, plaintiffs
noticed what appeared to be “ sweat ” coming from the wall.
This got worse, and eventually the coal of the embankment
took fire and the latter subsided. The coal, it was alleged,
took fire as a result of the heat from the furnace of the
extended retort-house. Later, smoke was seen coming from
the wall under the bridge, which spanned a small stream.
In the course of much expert evidence, Henry Armstrong,
mining engineer, said he knew many similar embankments,
but had never heard of a case of spontaneous combustion.
The coal became “ dead,” and he could not conceive of any
coal which had lain so long taking fire. Mr. A. C. Hoving,
who was responsible for the erection of the retort-house, w7as
of the opinion that the outbreak was due to spontaneous
combustion, and this view was supported by Mr. W. D.
Gibb, of the Ministry of Munitions, and formerly chief
engineer to the Newcastle and Gateshead Gas Company.
His lordship, giving judgment for the plaintiff company for
agreed-upon damages and costs, said he thought the fire was
caused by the heat from the retort house.

Mr. T. H. Cann, general secretary of the Durham Miners’
Association, presided over a smoking concert at Hebburn
last Saturday evening, held for the purpose of making a
presentation to Mr. F. Wilson, manager of Hebburn
Colliery, on the occasion of his leaving the town in order to
take up a similar position at Felling Colliery in succession to
Mr. Claude B. Palmer. The gifts subscribed for by the
officials and workmen at Hobburn Colliery included a case of
cutlery, a wallet containing £15, a silver sugar-basin and
tongs, cream jug, two silver-backed hair-brushes and an ink-
stand, together with a china cabinet for Mrs. Wilson.

As secretary of the movement for the establishment of the
Northumberland Mine Workers’ Federation, Mr. John
Cairns has issued a circular to the members of the
Northumberland Miners’ Association, the Northumberland
Colliery Enginemen and Firemen’s Association, and the
Northumberland Colliery Mechanics’ Association, the three
bodies which will probably form the new organisation. In
this document are set out a history of the negotiations with a
view to federation and the proposed constitution of the new
body, which constitution is to be voted upon by each section
before the end of the present year.

Mr. F. J. Black, of Darlington, has been appointed dock
engineer to the Seaham Harbour Dock Company Limited,