24 THE COLLIERY GUARDIAN. July 2, 1915. first place there is the fallacy that every variety of coal bears profit in a fixed relation. What we mean is that, whilst few collieries are able to apportion accurately to each grade of coal produced its proper burden of cost, it follows that at the current market price obtained for that grade at any time it may be sold at a loss, although the undertaking as a whole may show a profit. This must necessarily be so, because prices are not fixed at the will of the colliery, but in the face of competition and in accordance with the relation of supply and demand. Thus, a colliery may base its working upon a system of prices under .which all the profit is made on the small coal, whilst the large coal, as such, is bringing in no return to the shareholders. The seasonal demand for large coal may not coincide with that for small coal; the consequence, therefore, of fixing an arbitrary scale of prices may be most unfair to the colliery, because the index coal, although probably that which fetches the highest price, may form a small proportion of the total output and be equally a factor of relatively small importance in the general account. The result would be inevitably to force collieries to concentrate upon the classes of coal that were the most profitable to work under such artificial conditions, and, in some cases, to close down seams or pits that no longer paid to work. In either case the country would lose irretrievably a supply of valuable fuel, and it would be preferable under the circumstances that the State should buy the whole of the output, fix the prices of the different qualities at its discretion, and in this way gain some practical experience of business problems. Then we have to consider the figure to be taken to represent the increase in cost. Here again we have the fatal danger of averages. In this connection attention may be called to the highly instructive figures that have been put forward by the South Wales colliery owners. Acting under the instruc- tions of Mr. Hugh Bramwell (chairman of the Monmouthshire and South Wales Coal Owners’ Association) and Mr. Fred L. Davis (president of the owners’ representatives on the South Wales Conciliation Board), Messrs. J. C. Kirk and Son, chartered accountants, Leeds, have prepared a report upon confidential returns of profits made by members of the Association in 1914. The report, which is dated June 25, 1915, does not include certain companies having dual interests, such as coal production and iron and steel manufacture. Returns have been received from 79 members, with an annual output of 33,983,829 tons, and employing 121,722 men. The total profit for the year ending December 31, 1914 (or in the financial year ending nearest to that date), after payment of interest on debentures or otherloansand preference shares, is £1,712,047 5s. 3d., which works out at Is. 09d. per ton on the above output. The total output of 33,983,829 tons, represented by the colliery companies and firms whose trading results in 1914 have been summarised, includes the outputs of by far the greater proportion of the collieries situated in the steam coal area of the coal field. Of the total quantity produced at the collieries controlled by these 79 members, 6,711,175 tons, or 19*8 per cent., was produced either at a loss or without profit on the ordinary capital. Only on an output of 5,234,850 tons, or 15*4 per cent, of the total production, was there earned a profit of 2s. 6d. and over per ton on the ordinary capital, while nearly three times this quantity, produced by 29 colliery concerns, was marketed either at a loss or at a profit of less than 6d. per ton. It is notorious that in recent years the greater part of the profits that have been made out of Welsh steam coal have come from by-products, for firms such as the Powell Duffryn Steam Coal Company and D. Davis and Sons, that have had the confidence to expend large sums of capital upon coking and by- product recovery plant, have earned much higher dividends than their neighbours. It may seem foolish now to suggest that such enterprise should be taxed, but it is still more unsatisfactory that the inferior resources of less fortunately situated concerns should be yet further impaired on a scale the dimensions of which are mainly prompted by the exceptional success of one or two concerns. The South Wales figures, which are similar to those which have been published regularly by the Belgian Government, show very similar results; they demonstrate the fact that even in the richest coalfield in the world there are collieries working at a loss. The public must not assume that these failures are due in every case to inefficiency or to lack of enterprise. In this industry success or its antithesis lies more truly in the lap of nature than in any other commercial undertaking, and it is a practical impossibility to establish any fair average of working costs on a tonnage basis even in a compara- tively small coalfield. The legislation of the last few years, which has been predicated almost wholly by the capacity of the more successful collieries to support it, has already considerably widened the gap between the extremes of profit and loss. If, then, the case of the small and struggling colliery is not to be fairly considered, instead of increasing output we shall reduce it; the doctrine of the survival of the fittest is one that cannot hold good when we are looking for everyone to “do his bit ” for the country. The statement made last night in Miners and the House of Commons by Mr. the Lloyd George during the Committee Munitions stage of the Munitions Bill removes Bill. in a large degree the unsatisfactory position which seemed to have arisen respecting the position of the miners under this Bill. • Obviously the Bill would have been deprived of much of its value if our factories and workshops, engaged in the manufacture of munitions of war, were to be in continual danger of a forced stoppage of work through any scarcity of fuel resulting from miners striking whenever they discovered a real or imaginary grievance. Mr. Lloyd George said plainly that the Government could not possibly assent to a proposition which would exclude miners or anybody else from the general provision that no strike or lock-out was to be permitted to interfere with the production of munitions. It is, as he truly said, much too serious a time for us to allow the machinery of war to be paralysed by trade difficulties. It will be read, therefore, with the greatest satis- faction that an additional proviso has been added to the Bill, with the assent of the miners’ leaders, which removes the miners’ objection to compulsory arbitra- tion, while at the same time bringing the miners within the purview of the Bill. The means by which this result has been reached reflects the greatest credit upon Mr. Lloyd George’s powers of adjusting facts to circumstances. As he said, it does not matter to the Government what the machinery is so long as they are guaranteed against strikes and lock-outs. The miners, as was explained during the debate by Mr. Walsh, preferred their old machinery to the new method devised by the Bill. He rested his case upon very debatable premises. He said the old machinery had proved to be immensely effective; while the new method would come into collision with it and would produce chaos where order was wanted. The effectiveness of the old machinery, however, will scarcely be admitted by all. The nation as a whole has been profoundly shocked at the attitude lately exhibited in more than one of our coalfields. The very thought of a miners’ strike at such a crisis in our national affairs is repugnant to the national sentiment. We are glad, therefore, to hear that the miners’ leaders have now given a solemn promise that no stoppages of work shall take place during the continuance of the war. The country will be willing to accept that pledge, and we have no reason to think, despite the somewhat menacing attitude of Mr. Vernon Hartshorn, that that pledge will not be kept. In the meantime the Government could scarcely rely upon pledges alone, and the new clause will provide for any contingency that may arise. For if the miners cannot make the old machinery work, the new machinery is automatically brought into play. Thus the national interests will be secured ; and the miners are, in fact, not by any means excluded from the operation of the Munitions Bill, as was at one time feared might be the case. THE COAL AND IRON TRADES. Thursday, July 1. Scotland.—Western District. COAL. Business in the west of Scotland coal trade continues quiet. There are no signs of improvement, and values show a tendency to ease still further. Ells and splints have been a little more active than recently. The latter quality has secured some business on Italian account, but the uncertainty of obtaining licences for Spain and South America is having an adverse effect on the market. Navigation coal continues to be the strongest feature of business, but ordinary steams are doing very little. In view of the restricted enquiry for round coal, washed produce is somewhat scarcer, and values are inclined to harden, particularly in the case of treble nuts. Shipments from the district for the past week amounted to 120,181 tons, com- pared with 132,697 tons in the preceding week, and 112,455 tons in the corresponding week last year. | Current L’st week’s Last year’s 1 prices. prices. prices. Steam coal j 13/6-16/6 14/ -17/ 10/6-12/6 Ell ; is/ 15/ -15/3 11/3-11/6 Splint i 15/ -18/ 15/ —18/6 10/6-14/ Treble nuts j 16/3—16/6 15/9-16/6 11/ -11/3 Double do ' 15/9-16/3 15/9—16/6 10/6-10/9 Single do i 16/ -16/6 16/3-16/6 10/ -10/3 IRON. No change of importance has taken place in the Scotch iron trade during the past week. Pig iron makers report that new business is still very slow, and consumers are only purchasing sufficient supplies for their immediate needs. Large deliveries of haematite and ordinary are being made, however, particularly of the former, and works are well employed. There are 72 furnaces in blast in Scotland, the same number as in the preceding week, and one less than in the same week last year. The prices of makers’ iron are unchanged, and are quoted as follow :—Monkland, f.a.s. at Glasgow, No. 1, 80s. 6d., No. 3, 79s.; Govan, No. 1, 79s;, No. 3, 77s. 6d.; Carnbroe, No. 1, 83s. 6d., No. 3, 79s.; Clyde, No. 1, 85s. 6d., No. 3, 80s. 6d.; Gartsherrie, Summerlee, Calder and Langloan, Nos. 1, 85s., Nos. 3, 80s. ; Glen- garnock, at Ardrossan, No. 1, 86s., No. 3, 81s.; Eglinton, at Ardrossan or Troon, No. 1, 80s., No. 3, 79s.; Dalmellington, at Ayr, No. 1, 81s., No. 3, 79s.; Shotts, at Leith, No. 1, 85s. No. 3, 80s.; Carron, at Leith, No. 1, 86s., No. 3, 81s. per ton. The Glasgow pig iron warrant market has been inactive during the past week, the total turnover not exceeding 10,000 tons. Owing to the absence of business prices did not fluctuate to any extent, and Cleveland iron closed on practically the same level as in the preceding week at 66s. per ton cash buyers. Makers of finished iron report continued pressure for deliveries. Black sheet makers are principally engaged in the heavy department and are turning out large quantities of heavy gauges, while malleable iron makers are extremely busy in the iron and steel bar departments. Wrought iron and steel bar makers are well provided with orders on home account, but export business is not so satisfactory. Scotland.—Eastern District. COAL. Business in the Lothians is still influenced' to a large extent by the withholding of the export licences to Sweden and also to Denmark. Prices are consequently easier all round, and it is impossible to give more than an idea of values. Shipments from the district during the past week were 46,819 tons, compared with 37,966 in the preceding week, and 94,603 tons in the corresponding week of last year Best screened steam coal... Secondary qualities..... Treble nuts ............ Double do............... Single do............... Current prices. 14/ -16/ 13/6-15/ 16/6-17/6 16/ -17/ 15/6-16/ L’st week's Last year’s prices. 16/ -18/ 15/6-16/6 16/ -17/ 15/6-17/ 17/ —18/ prices. 11/3 10/ -10/3 11/3-11/6 10/6-10/9 10/3-10/6 Business in Fifeshire is dominated by much the same conditions as prevail in the Lothians. Permits have been issued for the Swedish State railways business, but apart from this no permits have been issued for Sweden, and a number of applications for Danish destinations have also been refused. Clearances amounted to 75,534 tons, compared with 62,699 in the preceding week, and 139,728 tons in the corresponding week of last year. Prices f.o.b. Methil or Burntisland. Current prices. L’st week’s Lastyear’s prices. prices. Best screened navigation coal 24/ -25/ 25/ -26/ 15/9-16/ Unscreened do 22/ -23/ 23/ -24/ 14/ First-class steam coal 18/ —20/ i 19/ -21/ 12/6-13/ Third-class do 13/6-16/ 15/ -16/6 10/ Treble nuts 16/6—17/6 15/6-17/6 11/ -11/6 Double do 16/ -17/ 15/6-16/6 10/6-10/9 Single do 15/6-16/6 15/6—16/ 10/ -10/6 The aggregate shipments from Scottish ports during the past week amounted to 242,534 tons, compared with 233,362 in the preceding week, and 346,786 tons in the corresponding week of last year.