..

THE COLLIERY GUARDIAN

AND

JOURNAL OF THE COAL AND IRON TRADES.
______________________________________

Vol. CXV.

FRIDAY, JANUARY 4, 1918.

No. 2975.

__________________________________________________________________

The Coal Trade of 1917.

Market Rrices Throughout the Year.

NORTHUMBERLAND.

A year ago, after reviewing the course of the Tyne-
side coal trade for 1916, we said: “ Granted no exten-
sion of Government interference, and that the war
pursues what we have nowadays become reconciled to
regarding as its normal course^-trade in 1917 should
be pretty much on a par with that of 1916_____Should
the new Government carry out its declared intention
of taking control of all British coal mines, that will
constitute a factor concerning the results of which it
would be impossible to prophesy. ... In any event, a
period of full employment appears to be assured.” So
far as that portion of the coal trade which is mainly
manipulated in the Newcastle market is concerned, our
optimism has not been justified. The premises we laid
down were not granted. The mines have been placed
under Government control, and trade at present is
conducted within the narrowest of narrow limits.
Besides, the war has not pursued a merely “ normal ”
course—if there can ever be anything normal about
war—but has developed on abnormal lines, especially
so far as the German submarine warfare is concerned.

Speaking broadly, the local coal trade has had a very
poor year, and employment has been lamentably irre-
gular. Tonnage shortage dogged the footsteps of coal
exporters throughout the year, and prevented the
transaction of much business. The supply of shipping
has been the main influence in deciding, throughout
the year, the volume of business done by and on behalf
of Northumberland pits, most of the output of which
usually goes for export, and has had a great bearing
on the rate at which it has been possible to remove the
production from the pits in the neighbouring county,
where export business looms very largely, albeit the
home trade done is always proportionately much
greater than in Northumberland.

So far as business for fuel for inland consumption is
concerned, the market has had little to complain of.
At no time, even in these days when the consumption
of coal for war purposes is so exceedingly great, is the
home demand sufficient to absorb the entire output of
local collieries. Cargo space was the deciding factor in
determining the activity or otherwise of the collieries;
and, for the most part, the supply of cargo space was
tantalisingly irregular, and much time was lost by the
mines and the miners in consequence. A few favoured
descriptions of fuel were well taken up throughout the
year, but the main qualities—such as steams and gas
sorts—had a very uneven time. Coking coals, smithies
and households were usually well absorbed on home
account. Coke, over the whole of 1917 practically,
was in much larger* demand than supply, and was
readily transported at well-maintained figures. The
prices at which coal and coke were sold bore little rela-
tion to the actual condition of the market, for, with
fixed “maximum” and “minimum” prices, fluctua-
tions due to the law of supply and demand practically
ceased to operate. Only in the case of gas coke—
which has never been 11 controlled.” as have other fuels
—can figures given be taken as any criterion of market
conditions. This quality of fuel, it will be seen, com-
menced at the fair altitude of from 31s. to 34s. per
ton, fell to from 30s. to 32s. in February, remained at
those figures until the end of June, weakened in July,
weakened still further in August, rallied in September,
and advanced steadily throughout the last three months
of the year, finishing up at from 35s. to 37s. 6d.

The preceding deals with the state of the ordinary
open market, and would convey a wrong impression if
it were not now added that there have been huge requi-
sitions on official account, for which the necessary
transport facilities have been provided. It has been to
these requisitions that the collieries have looked for
most of their employment during the year.

State Regulation of Prices.

It will be recalled that, when the year under review
commenced, a Board of Trade Order was in force,
stipulating that, for the period of the war, the follow-
ing were to be the maximum prices f.o.b. at the nearest
customary shipping place for each colliery, of the
following classes of local coal, so far as shipment to
France and Italy was concerned:—Northumberland:
Screened coal and nuts, 30s.; unscreened gas and
coking, 25s. ; and small coal, 20s. Durham: All quali-
ties of unscreened coal, including coking smalls, 25s.;
other small coal, 20s.; usual screened gas and manufac-
turing, including nuts, 26s. ; and large screened steam,
household, Lambton, and the like, 30s. The scheme
came into operation with June 1916 for the French
Atlantic ports, and at the end of October for the
French Mediterranean and Italian ports. The idea
was, of course, to give preferential treatment to our
Allies, as compared with neutral customers. It did not
always work out so, for occasionally sales of coal for
Scandinavian destinations were made under the Allied
scheduled rates.

In June 1917, the Coal Controller compiled another
scheme, which came into effect as from June 28. The
scheme was, of course, of national application—as was

The table on page 16 gives the highest and lowest
________________________________	prices per ton f.o.b. ruling during each month of 1917

for each of the various descriptions of fuel dealt in on
Newcastle market. In comparing the figures, it must
be borne in mind that (1) the year opened with maxi-
mum prices fixed for France and Italy; (2) a new scale
of fixed prices for France and Italy, and minimum
prices for all other destinations was established late in
June; and (3) another new scale—detailed earlier in
this article—came into operation in October.

Miners’ Wages.

that referred to above. So far as local coals and cokes
were concerned, however, it was, briefly stated, as
follows: The prices specified were to be charged for
all sales for shipment to France and Italy, including
coal for the manufacture, in the United Kingdom, of
coke oven coke or of patent fuel for these destinations.
No coal for shipment to other destinations or for use as
bunkers (including coal despatched to coaling stations)
was to be sold at prices less than those fixed for France
and Italy (in other words, the prices mentioned were
the minimum figures for all other destinations, and the
invariable prices for France and Italy). The scale,
shortly put—for it was an exceedingly detailed docu-
ment-established the following prices: Best steams,
Bly ths, 30s. per ton f.o.b.; Tynes, 29s. 6d.; seconds,
Bly ths, 25s. 6d.; Tynes, 27 s.; unscreened, 23s. 6d. to
25s.; smalls, Blyths, 20s.; Tynes, 18s. 6d.; specials,
20s. 6d.; smithies, 25s.; gas bests, 25s. ; seconds,
23s. 6d.; specials, 26s. 6d.; unscreened bunkers,
Durhams, 24s. to 25s.; Northumbrians, 24s. to 25s.;
coking coals (including smalls), 24s. to 25s.; house-
holds, 28s. 6d. to 30s.; coke, foundry, 42s. 6d.; and
blastfurnace, 42s. 6d. For some reason, gas coke was
left outside the schedule, and, indeed; still remains
unscheduled. Inland prices were fixed at 4s. above the
1914 standard.

In October, consequent upon the national concession
of increased wages to miners, another re-shuffling of
prices took place. The above figures remained invari-
able for France and Italy. Inland prices were raised
to 6s. 6d. above the 1914 standard, and the Channel
Islands were “ deemed to be part of the United
Kingdom ” for the purposes of the new Order. Sales
of coal for shipment to British possessions and protec-
torates, and to coaling stations therein, were placed
under the schedule as it applied to France and Italy.
Bunkers were advanced by 2s. 6d. per ton for what-
ever destination—home, Allied, or foreign. All coal
for shipment as cargo to other destinations abroad, or
for the manufacture of patent fuel for shipment to
such destinations, was advanced by 2s. 6d. per ton.
Whilst home consumers—save for domestic purposes—
had to pay the advanced prices as from September 17
(approximately the date from which miners received
their advance of Is. 6d. per shift), neutrals were not
called upon to pay excepting as from October 15. In
the same month, the home prices of foundry and blast-
furnace cokes were readjusted in accordance with the
scheme. Foundry coke low in phosphorus was
advanced by 7s. 6d. per ton at the ovens, making the
price 38s. All blastfurnace coke was advanced by 5s.,
making the ordinary, or high in phosphorus, 33s. per
ton, and the low in phosphorus 35s. 6d.—these prices
operating as from September 17.

Other Government Restrictions.

For the sake of coherency, we have dealt with these
official alterations in prices in the order in which they
occurred. It must not be imagined that the afore-
mentioned Orders were the only official edicts. At the
very start of the year, there was a very stringent
embargo—not absolute, but nearly so—on coal ship-
ments to Norway. This embargo was removed in
February, but meanwhile we may state that, without
criticising the wisdom of the stoppage, business was
considerably hampered. In January also, official
Regulations were issued providing that no competition
would be allowed in the coal export trade, and that no
firm must transact business it had not been in the
habit of transacting. In February, the coal mines
became “ controlled.” In March, the Coal Controller
issued a notice as to the advisability of no contracts
being made for more than three months ahead, and as
to the advantages of coal supplies being taken from the
nearest possible collieries. In July, following the issue
of the first schedule of coal prices of the year, certain
second-hand holders who had offered discounts on mini-
mum prices to neutral customers were pointedly
warned that they were thereby infringing the spirit of
the Order—and the practice ceased. That same month
saw the issue of the Coal Transport Order, for the pur-
pose of re-organising the transport of coal by public
railway for inland consumption a scheme which,
coming into operation on September 8, would, it was
estimated by the Controller, effect a saving in railway
transport of not less than 700 million ton-miles annu-
ally. It would be interesting to know how the scheme
has worked out up to date, for there was a general
feeling that the Controller was unduly sanguine. In
September, coming into operation on the 10th of that
month, the Wholesale Coal Prices Order, 1917, was
issued, regulating the prices at which factors or mer-
chants might sell coal to railway companies in Great
Britain, national factories, British gas and electric
supply undertakings, and to retail merchants for
re-sale to consumers, hawkers, and small dealers. All
these Orders and instructions have demanded very
careful scrutiny, and have added to the ton-thought—
to adapt an expression in the Transport Order—
involved in the sale of fuel.

Excepting for the national award in September,
whereby all miners of and over 16 years of age received
an extra Is. 6d. per day, and those under that age an
extra 9d., pits working or not, wages in the Northum-
berland and Durham coal fields have remained
unaltered throughout the year, although the ascertain-
ments of the selling prices of coal would have justified
reductions in Northumberland. In deference to the
strong representations of the miners that, until the
cost of living was reduced, they could not afford to take
less, the owners have refrained from pressing the reduc-
tions to which they were entitled. Therefore, North-
umberland miners’ wages have remained at 120 per
cent, above the basis of 1879, and those of Durham
miners at 107| per cent, above that basis. In December
the Northumberland coal owners agreed to increase the
payment to men earning the minimum wage, so that
they should receive five-sevenths of all percentages over
50, making their remuneration at present the mini-
mum wage plus 50 per cent, above the basis of 1879.
A similarly satisfactory arrangement has been come to
in Durham also.

The ascertainments of the average selling prices of
coal per ton at the pit mouth during the year were
as follow: —

Northumberland.

Quarter ended

November 30, 1916 ..............

February 28, 1917 ..............

May 30, 1917 ...................

August 31, 1917 ................

November 30, 1917 .............

Per ton.

17s. 7-29d.

15s. ll-17d.

15s. l-88d.

15s. 9-53d.

Not yet to hand

Durham.

Quarter ended	Per ton.

December 30, 1916 ............... 15s. 9-26d.

March 31, 1917 ................. 15s. 6-89d.

June 30, 1917 ___.................. 15s.	7-54d.

September 30, 1917 ............... 16s. 0-18d.

December 31, 1917 ................. Not yet to hand

It will be observed that, whilst Durham coals have
fairly well maintained their price, Northumberland
coals have slumped to the extent of about Is. lOd. per
ton on the year.

Coal and Coke Contracts.

In previous years it has been the custom in this review
to enumerate the contracts entered into under several
heads, according to the description of fuel sold. On
the present occasion, these sales have been few, and
almost exclusively confined to steam coals, so that it
will be quite convenient to deal with them all under
the one head. The principal contracts entered into
during the year were as follow (f.o.b. prices in each
instance, except where otherwise stated): —

January. — Quantities of best Bly th steams for
delivery, well ahead at 30s. per ton; 10,000 tons Tyne
seconds steams at 24s.

March.—10,000 tons Northumberland steams—two-
thirds best Blyths and one-third Bentincks — at
29s. 10d., 3,000 tons Hordens at 28s., and 3,000 tons
South Hettons at 28s. 9d. — all for delivery up to
April 15 to the Norwegian State Railways.

April. — Norwegian State Railways contracted for
10,000 tons best Blyths at 29s. 10d., option one-third
Bentincks at same price, 3,000 tons Hordens at 28s.,
and 5,500 tons South Hettons or Ryhopes at 28s. 9d,,
delivery up to May 10; quantities of Durham gas bests
sold for forward delivery at from 25s. to 26s. per ton,
according to destinations.

May. — Metropolitan gas companies renewed their
contracts for supplies of several million tons of Durham
gas coals at prices determined by the Price of Coal
(Limitation) Act.	,

June.—Norwegian State Railways purchased 10,000
tons D.C.B.’s or Bentincks at 29s. 2Jd., 4,000 tons
Hordens at 28s., and 4,000 tons South Hettons at
28s. 6d., for delivery over July-August.

August.—Norwegian State Railways contracted with
three Newcastle merchants, each to supply 12,000 tons
D.C.B.’s, option half Durhams, delivery up to October,
at 30s., with options at from 28s. 6d. to 30s., accord-
ing to quality; 4,000 tons best steams were sold for
delivery to Norway duirng the next few weeks at
scheduled prices.

September.—Norwegian State Railways contracted
for 18,000 tons Northumberland and/or Durham steams
(delivery over October-November) at 30s. for best
Blyths, and 29s. 6d. for Tyne primes, plus 5 per cent,
for merchants’ profits; contracts were allotted to
Northumberland and Yorkshire collieries producing
best steams for 120,000 tons, delivered at Woolwich
Arsenal over six months, prices on Government official
scale; several sales of patent coke for delivery over