20

THE COLLIERY GUARDIAN.

January 5, 1917.

tion of the various qualities produced has been enor-
mous, and it has needed the greatest possible effort to
satisfy the requirements of the various interests con-
cerned. Prices have been maintained firmly at
scheduled rates. There has been a remarkable increase
in the demand for nuts, both of the washed and
unwashed kinds, a considerable proportion of which has
been called into requisition for steam raising purposes,
owing to the heavy drain upon all classes of boilers. In
many cases nuts have taken the place of slack for boiler
filing, but supplies of the former are by no means
obtainable in sufficient quantities to satisfy customers’
needs.

SOUTH WALES AND MONMOUTHSHIRE.

Never in the history of the South Wales coal trade
has the district been so prosperous as in the year 1916.
Nevertheless, the period under review has been an
anxious and embarrassing one, and the industry has
been carried on under conditions which in normal times
would have been considered to be almost unbearable.
Probably the greatest handicap has been the shortage
of tonnage, due to a variety of causes. In the first
place, the demands of the Admiralty, in the prosecution
of the war, necessitated the requisitioning of an enor-
mous quantity of British tonnage, which has been exclu-
sively engaged in transport service. The result has
been to transfer upwards of 75 per cent, of the export
trade to neutral-owned vessels. An example of the
stringency of the market in this respect may be found 1
in the fact that for a period of over three.weeks not a
single British-owned boat left the port for a foreign
destination. Neutral owners were not slow to take
advantage of their opportunities, and various methods
were adopted to maintain the extravagant rates of
freight, which have been the rule throughout the greater
part of the year. In some cases steamers were diverted
to other trade routes, in order to increase the shortage;
Norwegian vessels were temporarily withdrawn owing to
insurance difficulties. All these factors stimulated the
demand for tonnage, and during the year freights
advanced to 10 or 12 times the normal. So embarrass-
ing and so burdensome did the situation become, that
the Government ultimately took action, with the result
that limitation rates were fixed for the French, Medi-
terranean, and Italian ports, and just before the close
of the year a scheme was adopted for the allocation of
tonnage to these destinations. Licences for shipment
to neutral countries have only been sparingly granted,
more especially to the southern half of the western
hemisphere, and a large field for development has thus
been left to the enterprise of the American coal pro-
ducers, who are our greatest competitors in the trans-
Atlantic and Pacific markets. In 1915 the output from
the associated collieries in the South Wales coal field
amounted to over 44 million tons, and careful estimates
show that this quantity has probably been exceeded by
several million tons during the past 12 months, and
this despite the fact that between 15 'and 20 per cent,
of the miners had enlisted and were serving with the
Colours. The enormous demand for coal, not only in >
this country, owing to the great development of the
iron, steel, and other industries engaged in war service,
but also from France and Italy, has made it imperative
that production should be stimulated. A large part of
the coal fields of France being still in the hands of the
enemy, it is computed that her requirements during
1917 will amount to no less than 26,000,000 tons, the
whole of which, it has been arranged, shall be exported
from this country. It is a huge scheme to carry out,
but, under the new Government, vigorous measures are
being taken to facilitate loading and discharge,.and also
to . expedite the construction of standardised cargo
vessels. Exports to France during the past year were
nearly 10 million tons, or an increase of a million and a
half tons over 1915, and nearly four million tons more
than in pre-war times. These quantities will be much
exceeded during, the present year, and it is stated that
arrangements will be made, for reasons of economy and
expedition, for Italy to obtain the bulk of her supplies
from other sources. Much is expected to result from the
joint efforts of the owners and the workmen’s leaders to
reduce absenteeism, and if this evil can be eliminated,
there is little doubt that the output during the current
.12 months will exceed all previous records. In the first
half of 1916, it was ascertained from actual figures that
over 500,000 working turns were lost through avoidable
causes, and whilst a considerable improvement took
place during the last two months, there is still a certain
amount of slackness, varying from 5 to 8 per cent, in
different districts. Now that the entire coal field is
under Government control, a marked improvement is
looked for, and all that is needed, to ensure full outputs
being maintained for a long -time to; come is the provi-
sion of adequate transport facilities.

Labour conditions throughout the year have been
extremely unsatisfactory, and there has been a constant
agitation for an increase in wages. At the beginning of
1916 the rate was 83| per cent, over the old standard.
In February the miners asked for an advance of 5 per
cent., and the owners counter-claimed a reduction of
3| per cent. No agreement was arrived at before the
Conciliation Board, and the matter was referred to Lord
Muir Mackenzie, as independent 'chairman, his lordship
voting against both applications. In May a further
request was made by the men for an advance of 15 per
cent., and the owners also applied for a reduction. Lord
Muir Mackenzie then suggested that the equivalent sell-
ing price to the minimum rates should be 10 per cent,
over the 1915 standard. This was warmly repudiated
by the miners’ leaders, who contended that the chair-
man had exceeded his functions, and that by making
this suggestion he had destroyed the confidence which
was necessary to maintain peace in the coal field. Feel-
ing on the matter was strong, and eventually Lord
Mackenzie resigned his position. The men applied to

the Government direct to settle the difficulty, and Mr.
Runciman, acting for the Board of Trade, granted the
application of the miners, notwithstanding the fact that
the owners protested that this was a breach of the Con-
ciliation Board agreement. Three months later, in
view of the great advance in selling prices, the workmen
sought a further increase of 12| per cent., whereas,
owing to diminished output and extra costs of produc-
tion, the owners asked for a reduction of 15 per cent.
In default of agreement, Lord Justice Pickford, who
had been nominated as independent chairman, con-
sidered the matter, and refused both applications. Much
dissatisfaction was expressed, and when, in November,
the men made a further demand, they urged that the
books of the coal owners should be subject to audit by
an auditor nominated by the Federation. This the
owners declined, but pointed out that they had offered
Sir David Dale and his successors the opportunity of
appointing a chartered accountant for their own guid-
ance, if they so desired, but such facilities had not been
taken advantage of. On this occasion the miners
demanded an advance of 15 per qent., and the owners
sought a reduction of 10 per cent. The workmen were
insistent with regard to audit, and even went so far as
to threaten a stoppage if the request were not granted.
Matters were becoming serious, and when the miners
suggested that the Government themselves should
decide the point in dispute, instead of the independent
chairman, Mr. Runciman, on behalf of the Board of
Trade, undertook to make personal investigations. The
result was a surprise to everybody. The announcement
was made, without any previous warning, that the
Government had taken over the entire control of the
coal field, and, pending the necessary, investigation of
the owners’ books, the application of the men would be
conceded, subject to any rectification that might after-
wards be found to be necessary. Thus the South Wales
coal field became a Government institution, without any
instructions or guidance as. to how affairs were to be
conducted in the future. The men had succeeded in
obtaining an advance of 30 per cent, during the year,
but this apparently did not satisfy them, and they
demanded that all the other coal fields of the country
should be treated in the same way. This apparently is
going to be done; but in the meantime, details of
management are proceeding as usual, with the appoint-
ment of an Inter-Departmental* Committee to exercise
the necessary control.

So much for the past. The future is full of possi-
bilities , and with judicious treatment there is no reason
why the South Wales coal field should not become more
prosperous than ever before. The superiority of the
coal is undoubted, and there is a world-wide demand,
which is likely to continue for very many years if suit-
able working conditions and transport facilities are
conceded. Below is a resume of the trade conditions
from month to month :—:

January.

The closing days of the year 1915 and the opening
week of 1916 were characterised by extremely bad
weather, and the result was a scarcity of tonnage in
the various docks, and a consequent weakness of prices,
which continued for about a fortnight. In the middle
of 'the month, however, vessels began to crowd in, until
upwards of 300 ships in the port of Cardiff were await-
ing cargoes. It was considered on the market that the
rush was only temporary, and whilst quotations for coals
began to harden, freights also rose to record figures.
For instance, where a charter-party for Genoa could be
entered into at 6s. 6d. per ton before the war, as, much
as 80s. was being demanded, and 79s. was actually paid
for .a voyage, with the usual Italian options. So serious
did the matter become that the Cardiff Chamber of
Commerce discussed the situation, and the president
(Mr. T. E. Watson) pointed , out that the current rates
were inflicting hardship on the Allies, 'and if we expected
to win the war, it was necessary that the burden should
be reduced. Freights, he said, were more than 10 times
higher than in pre-war times, and ship owners were
receiving about seven times the ordinary demurrage
rates. Ultimately, the attention of the Government
was called to the matter, and a limitation of prices sug-
gested, which came into operation later in the year. As
in the previous year, no figures were published relating
to British Admiralty business, and the Custom House
returns only relate to shipments,made to other destina-
tions. During the month the foreign exports amounted
to 1,524,993 tons, compared with 1,697,777 tons in
January 1915, or a decrease of 172,784 tons. As
already indicated, the market exhibited, a strong ten-
dency, and there was a substantial advance in every
section. For instance, ordinary steam coals ranged
from 24s. to 33s., best bunker smalls from 12s. 6d. to
19s. 6d., No. 3 Rhondda bituminous 23s. to 35s., Mon-
mouthshire Black Veins 24s. to 35s., and patent fuel
24s. to 35s. per ton. Although orders were plentiful,
sellers fought shy of long contracts, and buyers
apparently preferred to take their chance on the open
market. The only exceptions of importance were the
Egyptian State Railways, who came into the market
for 260,000 tons of steam coals, for delivery at 25,000
tons per month until October, and 10,000 tons in
November. There was an option to quote f.o.b. or c.i.f.
Alexandria, and, alternatively, contractors were invited
to quote for American coals. There was an enquiry by
the Eastern Railways of France for 50,000 tons of patent
fuel for delivery over the year, and this contract was
secured by the Crown Company at a satisfactory figure.

February.

There was a heavy demand for coal throughout the
month from all quarters of the world. British
Admiralty requirements became increasingly heavy, and
substantial quantities were taken of Monmouthshire
descriptions. The Egyptian State Railways, contract
which came into the market in January was not placed

in its entirety, and it was stated that a portion-of the
order went to America. The Greek Government invited
tenders for 50,000 tons for shipment in Greek bottoms.
The necessary quantities were obtained, but nothing was
disclosed as to terms. The Spanish authorities 'also
obtained 20,000 tons. There was considerable activity
in the patent fuel market, with the result -that before
the end of the month some makers were fully booked
for months in advance, and were unable to receive
further orders except for small quantities of free fuel.
The shortage of labour was a continual source of diffi-
culty, and it was stated that some of the heaviest pro-
ducers were not turning out more than 50 to 75 per
cent, of their normal output. Orders were placed by
the Italian State Railways for 10,000 tons for delivery
between February and June, and several individual
cargoes of 5,000 tons each were secured by the Greek
Government. The Barcelona, Saragossa, and Alicante
Railways and the French State Railways contracted for
supplies amounting to about 120,000 tons. During the
month figures were quoted .showing that the total trade
of the Bute Docks for 1915 amounted to 11| million
tons, or a decrease of 1,620,000 tons compared with the
preceding year, owing to the serious falling-off in the
number of ships entering the port. The first of the
series of difficulties on the question of miners’ wages,
already alluded to, was dealt with during February, the
workmen claiming an increase of 5 per cent., and the
owners asking for a reduction of 3| per cent. The Con-
ciliation Board failed to agree, and the matter was
referred to the- new independent chairman, Lord Muir
Mackenzie. The foreign exports during the month
amounted to 1,372,465 tons, compared with 1,762,784
tons in the corresponding period, or a decrease of
390,319 tons. The markets generally showed little
variation, the chief features being a slight easiness in
small coal, and an upward tendency in patent fuel.
Ordinary steams ranged between 33s. and 35s., smalls
18s. to 20s., Black Veins 34s. to 36s., No. 3 Rhondda
bituminous 32s. to 35s., and patent fuel 32s. to 37s. 6d.

March.

The beginning of this month was characterised by a
great scarcity of tonnage, and new records were made
in the freight market. For instance, 93s. 6d. was paid
for Genoa options; Marseilles, 125 fr.; Bordeaux, 65^-fr.;
Havre, 30s.; Nantes, 57-g-fr.; St. Nazaire, 55 fr.; River
Plate, 75s.; and Rio, 54s. This sharp advance was
again attributable to stormy weather and delays in
arrivals, and the result was an unsettled market, with a
wide range of quotations. There was a further restric-
tion of licences for the- shipment of small coal, and large
stocks accumulated in the sidings, with the consequence
that stoppages were threatened at certain collieries
owing to the -scarcity of wagons. Best bunkers were
done at 17>s. 6d., and even leiss, and cargo qualities
changed hands at as low as 11s. When the market was
in this condition, the' Admiralty came into the market
for a large quantity, and individual firms were requested
to quote for consignments of 20,000 tons each. The
exceptionally high freights had a depressing effect on
shipments, and many buyers declined to negotiate busi-
ness until the markets became more settled. It was
pointed out that the extravagant rates ruling through-
out the month were chiefly secured by neutral ship
owners, and it was suggested that a freight tax should
be imposed. The exports for the month amounted to
1,408,161 tons, compared with 1,923,279 tons in March
of 1915, or a decrease of 515,118 tons. Prices fluctuated
considerably, but at the conclusion of the month, with
one or two exceptions, were slightly improved. Ordi-
nary steams ranged between 29s. and 36s., bunkers 16s.
to 20s., Black Veins 30s. to 37s., No. 3 Rhondda 28s.
to 35s., and fuel 35s. to 40s. During the last week of
the month there was a very severe storm, and for many
days there was no communication between the collieries
and Cardiff except by rail or road. In consequence of
submarine activity, the Admiralty imposed an embargo
on 'all British and Allied vessels, with the result that at
one time, there were over 100 steamers in the roads
awaiting orders. The decision of Lord Muir Mackenzie
on the wages question was made known during the
month, the requests of both parties being refused. With
regard to the trade of local docks, Barry returns showed
10,389,908 tons, or a decrease of 1,182,465 tons, and
Penarth Dock 3,153,461 tons, or a decline of 840,000
tons. At the annual meeting of the Coal Owners’ Asso-
ciation, it was announced that the production of the
associated collieries for 1915 amounted to 42,036,749
tons, or a decrease of 2,736,236 tons compared with the
previous year. The controlling interest in the Celtic
Collieries, formerly known as Elders, was 'acquired by
Lord Rhondda and the Cambrian Combine.

April.

The chief feature of this month was the rapid advance
which took place in all descriptions of coal. In the
opening days, ordinary steams were quoted at 38s. to
39s. At the close they were almost unobtainable at
50s. to 51s. Best bunkers advanced from 21s.-22s. to
29s.-30s., Black Veins from 39s.6d.-40s. to 50s.-51s.,
No. 3 Rhondda bituminous from 36s.-38s. to 49s.-50s.,
and fuel from 37s. 6d.-40s. to 47s. 6d.-50s. Ample
tonnage was available, and early in the month it became
apparent that there was sufficient to meet all require-
ments until well after Easter. With the rapid advance
in the price of coal, there was a corresponding decline
in freights, Genoa being fixed at 80s., and other ports
in proportion. The Easter holidays interfered with
business, and outputs were so much affected that many
contractors were unable to secure their monthly 'allot-
ments, and the small parcels of free coal which came
on to the market were eagerly snapped up at rates far
in advance of the nominal quotations. The only con-
tract of any importance was that of the Great Northern
Railway Company of Ireland, which wanted tenders for
60,000 and 120,000 tons of locomotive coals for delivery