2 O A L G E
A M c G r a w - H i i . l P u b l i c a t i o n — E s t a b l i s h e d 1911
D E V O T E D T O T H E O P E R A T IN G , T E C H N IC A L . A N D B U S IN E S S P R O B L E M S O F T H E CO AL M IN IN G IN D U S T R Y
New York, November , 1930
Vo l u m e 3 5 .. . . Ntimrrr 11
New Roads to Profits?
E C O N O M I C cry stal-g azin g is never m ore fascin atin g th an when in d u strial depression m akes business men view to m o rro w as a d a rk ly c u rta in e d d o o rw a y to an uncertain fu tu re . W ith an in d u stry circum stanced as bitum inous coal has been fo r th e p a st decade, intensive speculation on w h at is ah ead be
comes im p erative. In m ak in g fu tu re tren d s the m a jo r them e of its recent convention, the N a tio n a l C oal A ssociation show ed keen con
ception o f th e fu n d am en tal problem s of its m em bership.
B I T U M I N O U S C O A L has had m o re th an its s h a re o f gloom y critics to cheer its d a rk days. D iscussion a t D e tro it, how ever, was the an tith esis of th e counsel o f d esp air. T h e re w as little blinking a t th e facts which have m ade d efe a tism p a la ta b le to m any wear}' c ap tain s o f th e mines. T h e courageous o ut
look expressed was bo rn o f confidence in re
sources fo r lead ersh ip w ithin th e industry itself an d b elief in yet im p erfectly developed e x te rn al possibilities.
O N E such possibility— touched upon by sev eral sp eak ers a t the convention— is the w idening o f th e sp h ere o f th e coal p ro ducer to ta k e in th e m an u fa ctu rin g o f byproducts.
T h e suggestion is n o t new : to m any in the in d u stry th e idea a p p e ars too fan tastically
im practicable fo r co n sid eratio n . B ut the fact th a t this suggestion w as sounded so m any tim es a t the D e tro it m eeting by men who have been stu dying th e causes of failu re s and successes in o th e r fields o f business activity is too significant f o r offhand dism issal.
S T R E S S IN G m a n u fa c tu rin g possibilities im plies no b elittlem en t o f coal as a fuel. C oal still rem ains the chief source o f industrial energy an d its big job is still th a t o f th e la rg est and m o st d ep endable su p p lier o f pow er and heat. B ut th e reco rd o f th e p a st ten years has p ro v ed th a t th a t job no lo ng er absorbs develop ed m ine capacity. W hen in
d u stria l consum ption will again force the pro d u ctio n curve sh arp ly u p w ard is an un
answ ered question.
W H Y han g the fu tu re on th a t a n sw e r?
W h y feel, as so m any do, th a t th e re is n o th ing le ft fo r th e in d u stry b ut to w ait until outside in terests decide its fa te — especially since p rofits o f m an u fa ctu rin g g en erally g re a tly exceed those realized on th e p ro d u c
tion and sale o f raw m a te ria ls ? W h y n o t a
m ore active d riv e to b ro ad e n th e uses of coal
both as a fuel and as a raw m a te ria l fo r m an
u fac tu re d p ro d u cts ? N ew ro ad s to profits a re
n o t discovered by som nolent a rm c h a ir
explorers.
An O il Shipm ent Spotted B eside the Plant for Pum pin g to the Storage Tanks, W hich Are Located Behind the
C oolin g T ow er at the R ight O ne o f the Four G en
erating U n its and the Five C irculating Pum ps
S h ow ing the Four Generators. Ex
c ite rs.o f the T hree U n its in the Back
ground Are H id by the Exhaust V ent of the First U n it. N o te an Intake Filter in the U p per Center
T h e Engine Controls Are C lose to the Switchboard
T he D ie se l Plant Is at the Extreme R igh t and the Shaft H eadfram e at the U p p er Left
DIESEL PLANT
+ Generates Power for Price Hill
A
S U R V E Y o f internal-com - bu stio n oil engine installations g e n e ratin g pow er a t th e m ines in 1925 listed, exclusive o f equipm en t installed fo r stan d b y d u ty and o p eratio n only in case o f fa ilu re of line pow er, 24 such engines w ith a total capacity o f 2,567 hp. ( Coal A g e , V ol. 27, p. 7 4 7 ). T h e p resen t y ear is m ark ed by th e installation of a p lan t w ith a capacity of 1,440 hp.
— th e larg e st D iesel in stallatio n in the c o u n try erected to fu rn ish pow er exclusively fo r coal m ining. T h is p lan t, p u t into service last M a y ' a t P rice H ill, R aleigh C ounty, W e st V irg in ia, fu rn ish e s pow er fo r o p er
a tin g th e Sew ell seam s h a ft m ine of th e P ric e H ill C olliery Co. C apacity op eratio n fo r th e m ine is a p p ro x i
m ately 33,000 to n s p e r m onth.
C om plete electrification, ra th e r severe g ra d es fo r g a th e rin g locom o
tives, an d a continuous pum ping load a re fa c to rs w hich co n trib u ted m aterially to a high cost p er ton f o r p u rch ased po w er w hen th a t cost w as m atched ag ain st th e average fo r o th e r so u th e rn W e st V irg in ia m ines.
A lth o u g h th e n e t po w er cost fo r p urch ased po w er— averaging about 1.6c. p e r k ilo w att-h o u r— w as close to norm al, co n sid erin g th e am o u n t of pow er used and th e ra te schedules in effect, a service ch arg e o f $1.50 p er k ilo w att p e r m o n th o f 15-m in
ute m ax im u m dem and, ru n n in g a p p ro x im ate ly $1,200 p er m onth, led th e P ric e H ill m an ag em en t to en gage a w ell-know n firm o f consult
ing engineers to iook into th e situ a tion an d m ake recom m endations w ith resp ect to th e co n stru ctio n of a p riv a te p o w er plant.
T h e re p o rt o f th e consultants, m ade in 1927, fav o red th e use of D iesel engines o v er steam a n d indi
cated th a t th e re w ould be a sm all saving o v er purch ased pow er. A l
th o u g h a steam p lan t w ould absorb considerable bone and “boney” now g oing to re fu s e b an k s, th e w a te r sit
uation tu rn e d th e scales in fa v o r of oil. T h e creek upon w hich th e p ro p erty is located goes d ry d u rin g sea
sons o f light rain fall and th e m ine w a te r w ould req u ire th o ro u g h tr e a t
m ent b e fo re it could be used as boiler feed. D iesel engines also re quire a scale-free w a te r f o r use in the cooling system , b u t th e q u an tity needed is small. T h e to tal cost of th e D iesel p lan t (in clu d in g building, oil-handling and sto rag e equipm ent, cooling tow er, and sm all tre a tin g p la n t) w as in th e neighborhood of
$150,000, as com pared to an esti
m ated cost o f $190,000 fo r a m o d ern steam plant.
T h e D iesel installation consists of fo u r 360-hp. vertical engines, each d i
rectly connected to a 300-kva. 2,400- volt g e n erato r and- all housed in a building 40x60 ft. E n g in es and g en e rato rs w ere m ade by F airb a n k s, M orse & Co. T h e fo rm e r a re tw o- cycle M odel 32, S tyle V A , six - cylinder, 1 4 x l7 -in ., 257-r.p.m . T h e g e n e rato rs have direct-connected 10- kw. 125-volt exciters a n d are equipped w ith w ide bases, w hich m ake it possible to slide th e sta to r o ver to facilitate re p airs o r inspec
tio n o f eith er s ta to r o r ro to r w ith o u t d istu rb in g th e b earin g pedestal n e x t to th e exciter.
P la n t control is centered a t a sw itchboard consisting o f fo u r g e n e ra to r panels and six feed er panels, and equipped w ith T irill voltage reg u lato r, synchroscope, w a tt-h o u r m eters, and grap h ic to talizin g m eter.
T h e sw itchboard also carries th e in d icatin g u n its o f fo u r electric p y ro m e te rs ; each u n it has a six- point selector dial fo r read in g the exhaust tem p e ra tu re of an y cylinder.
E n g in e speeds can be ad ju ste d by hand wheels on th e g o v ern o r ends, w hich are situated close to th e sw itchboard. T o talizin g flow m eters are installed in th e fuel oil and lub-
By J . H. E D W A R D S
Associate Editor, Coal Age
ricatin g oil lin es; these and th e elec
trical in stru m e n ts affo rd a com plete record o f p erfo rm an ce.
O th e r equipm ent in th e building consists of five sm all c e n trifu g al m o to r-d riv en w a te r circu latin g pum ps a n d com pressed a ir eq u ip m en t fo r engine s ta rtin g . A ir intakes to each engine a re fitted w ith sectional screen filters m ounted on a level w ith the tops o f th e cylinder heads. T h e engines e x h a u st into individual con
crete boxes located u n d e r th e floor beside th e respective fo u n d atio n s.
T h e y a re d ra in e d th ro u g h th e b u ild in g fo u n d atio n w ith 4-in. tile and vented by larg e pipes th ro u g h th e roof.
E
N G I N E S a re cooled by a closed s y s te m ; th e jack et w a te r is circu lated th ro u g h banks o f tubes located n e a r th e bottom o f th e cooling tow er, an d raw m ine w a te r d rip p in g dow n o v er th e to w e r baffles an d onto the tubes does n o t m ix w ith th e jack et w ater. T h e u n it is five-bay cooling to w er fu rn ish e d by th e C ooling T o w e r C om pany o f A m erica. T h e jack et w a te r circulates th ro u g h “ B en tu b e”sections o f a d m iralty m etal m ade by th e G riscom -R ussell Co. W ith sec
tions o f th is co nstruction, scale w hich m ig h t fo rm on the o utside o f th e tu b es can be b roken off by tu rn in g steam into th e tubes. T h e heads a re anchored to g eth er by long tiero d s, so th a t th e expan sio n caused by steam te m p e ra tu re will bow th e tubes sufficient to crack th e scale.
So fa r th e re has been no sign o‘f scal_
fo rm atio n on th e outside.
A d ja c e n t to th e cooling tow er, w hich is about 75 ft. fro m th e engine house, th e re is a covered concrete ta n k divided in to tw o co m p artm en ts w h ere th e m ake-up jack et w a te r is
(Turn to page 664)
N ovem ber, 1930 — C O A L A G E 655
BITUMINOUS INDUSTRY
+ Co-ordinates Allied Forces At National Coal Convention
G
R O U P A C T I O N on the p a rt o f every one associated w ith th e bitum inous coal in d u stry w as the them e o f th e th irte e n th a n nual m eeting of the N ational Coal A ssociation, held at th e B ook-C adillac H o tel, D etro it, M ich., O ct. 15-17.Coal com pany executives and re p resentatives o f associated in d u stries show ed as never b efo re th e ir keen in terest in a com m on problem . M erchandising, co-operation am ong in terd ep en d en t gro u p s, p rospects of expansion in the face of com petition from su b stitu te fuels, and o th er q uestions connected w ith th e conduct o f the bitum inous in d u stry w ere exam ined in the light o f the
g re a te st benefit to the g re a t
est num ber.
In fu rth eran ce of the idea o f co-operation, th e Coal and Coke C om m ittee o f the S o u th ern F re ig h t A ssocia
tion, th e fuel com m ittee of the N ational A ssociation of P u rc h a sin g A gents, and the Coal, Coke, an d Iro n O re C om m ittee o f the C entral F re ig h t A ssociation T e r r i
to ry held c o n cu rren t m eet
ings. Jo in t sessions o f com m ittees o f the N atio n al Coal A ssociation, th e N ational A ssociation o f P u rc h a sin g A g e n t s and th e I n te r national R a i l w a y F u el A ssociation also w ere held, and th e C om m ittee o f T en
— Coal and H e a tin g E q u ip m ent In d u strie s m et to con
sider com m on problem s. A s an added attra ctio n , eleven stoker m a n u fa c tu rers and one chem ical c o m p a n y offered th e ir p ro d u cts fo r the inspection of th e dele
gates.
A side fro m o rg an izatio n affairs, sa fety and coal classification w ere the topics discussed a t th e first form al session in the m o rn in g of O ct. 15, w ith F . F. T a g g a rt, M a s
sillon, O hio, presid en t. S pruce R iv er Coal Co., in th e chair. F u rth e r revision of th e m ining law s in A labam a, will be necessary to cope w ith changing conditions b ro u g h t on by increased m echanization, if safety, law fulness, an d econom y are to be served in th a t class o f w ork, said W . B. H illhouse, chief, A labam a D ep artm en t o f M ines, w hose paper w as read by D. A. T hom as, B irm in g ham , A la., presid en t. M ontevallo
Coal M in in g Co. M r. H illh o u se discussed falls of ro o f, u n d erg ro u n d tra n sp o rta tio n , and ignition of gas from the stan d p o in t of safety, and said th a t m edical costs and com pen
sation paid in n o n -fatal accidents cost the o p erato rs in A labam a 3.2c.
per ton in th e first nine m o n th s of 1930. T h is figure did n o t include tim e lost by the in ju red .
P re v e n tio n of accidents still does n ot get th e a tten tio n th a t rescue and rehabilitation w o rk a f te r disasters does, asserted E . W . S m ith, chief, O hio D ivision of M ines. H e em p h a
sized th e im portance of m anagem ent in sa fe ty w ork. R . M. L am bie.
chief. W e st V irg in ia D e p a rtm e n t of M ines, said th a t th e to n n ag e p e r fatality in W e st V irg in ia had been reduced 62,000 in.
th e ten y e a r s preceding 1930, and th a t a fu rth e r reduction o f 10 p e r cent had been m ade in the p re s
en t year, as com pared to th e sam e period in 1929. H e suggested th a t the associa
tion appoint a com m ittee to m eet w ith m em bers o f th e M ine In sp e c to rs’ In stitu te tw ice a year on safety.
“E d u catio n , supervision, and discipline” is M a ry la n d ’s slogan in accident p rev en tion, said J. J . R utledge, chief m ine engineer, M a ry land B u r e a u of M ines, w hose p ap er w as read by A . B. S te w a rt, president, D avis Coal & Coke Co.
Classes o f coal will in som e cases have to be estab lished arb itra rily , said T . W . H a rris , J r ., W ilm in g to n , Del., division p u rch asin g agent, E . I. d u P o n t de N em o u rs & Co., in discussing the w o rk o f the coal classifi
cation com m ittee sponsored
N .C .A . RE-ELECTS O FFIC E R S
A ll o f last year’s officers o f the N a tio n a l Coal A ssociation w ere re-elected at th e th irteen th annual m eeting, held in D e tro it, M ich., O ct. 15-17.
T he ro ster is as follow s:
P resident— C. E. Bockus, N ew Y ork City, presi
dent, Clinch field C oal C o rp o ratio n .
Vice-Presidents— W . H . C unningham , Chicago, president, T ru ax -T raer Coal C o.; Rice M iller, H illsboro, 111., president, H illsb o ro Coal C o.;
J. W . Searles, N ew Y o rk City, president, P en n sylvania Coal S i C oke C o rp o ra tio n ; J. F. W elborn, D enver, C olo., chairm an o f the b oard, C olorado Fuel & Iro n Co.
Treasurer— W . D . O rd , L andgrafï, W . Va., president, Em pire Coal & Coke Co.
E xecutive Secretary— C. B. H untress, W a sh in g ton, D . C.
C harles A. O w en, N ew Y o rk City, president, Im perial Coal C o rp o ratio n , succeeded H . F.
B ovard, G reensburg, Pa., president, K eystone Coal
& Coke Co., as a director o f the association, and C harles O ’N eill, N ew Y o rk City, vice-president in charge o f sales, Peale, Peacock & K err, took the place o f R em b ran d t Peale, St. Benedict, Pa., presi
d en t o f the com pany.
656 C O A L A G E — Vol.35. N o .l l
by the A m erican Society fo r T estin g M aterials and o th er organizations.
“ H o w e v e r,” he added, “ the c h a ra c ter
istics of the v ario u s classes and the crite ria fo r th e ir differentiation m ust be based upon the n atu ral schem e of developm ent o f coal.”
A f te r p relim in ary studies have been m ade, the fu tu re developm ent seem s to lie along the follow ing lin e s : study o f th e characteristics
of th e coal already established, or w hich can be established, th a t bear on the vario u s uses and m ark etin g practices now in effect; fu rth e r e x tension of u n ifo rm laboratory tests fo r coals of v ario u s c h a ra c te ris tic s ; sim ultaneous com parison and study o f p ro x im ate analysis, h eatin g value, u ltim ate analysis, and physical p ro p erties of coal on any m oisture and p u rity b a s is ; establishm ent of classes based on the n atu ral schem e o f devel
opm ent of coal fro m a physical, chem ical, and geological s ta n d p o in t; devel
opm en t of a scientific m ethod of clas
s ific a tio n ; and the application o f th is classification so th a t it can be used by in d u stries fo r th e ir individual problem s.
“ T h e classification of coal is aim ed d irectly a t th e elim ination of w aste.”
B oth coal p ro d u cers and coal con
sum ers w aste considerable sum s and d u p licate an enorm ous am o u n t o f w o rk each y ear in a tte m p tin g to d ire c t coals into th e ir p ro p er ch an nels. In addition, “ it is undoubtedly a fact th a t lack of know ledge as to th e relative values of coal fo r various uses has quite o ften created an im p ro p e r com parison o f selling prices b etw een v ario u s coals and an im p ro p e r pu rch ase and sales co st.”
A
N A L Y S I S of coal is a m inor con->- sid eratio n o f the purchasing a g en t, w ho o fte n is tem pted by low er priced coals to change his req u ire
m en ts or ru n expensive tests w ith the coals available. T h is is p articularly tru e o f late, observed M r. H a rris, since it has been show n th a t the p ro p er sizing o f coal o r m any other facto rs n o t developed th ro u g h analysis m a y influence th e usability. P ro p e r classification, lim ited by geographic locations, should n a rro w dow n the logical source o f supply and give the b uyer an d th e coal p ro d u c er a low er cost in o b tain in g his p ro p e r req u ire m ents. P ro p e r classification also should n a rro w dow n th e consum ing points w hich th e coal o p e ra to r m ay reach an d enable him to e n te r it at th e least expense. I n addition, know
ing th e m a rk e t’s re q u irem en ts, the p ro d u c e r w ould be able to m ake his
C. E. Bockus
outlay fo r p reparation go fa rth e r than at the present tim e.
A t the local association luncheon m eeting on O ct. 15. presided over by H . R. H aw th o rn e, N ew York- City, secretary, P ocahontas F u el Co., addresses w ere m ade by J . E. B utler, S te arn s, K y., general m anager.
S tearn s Coal & L u m b er Co. (read by R. E . H ow e, K noxville, T enn., secretary, S o u th e rn A ppalachian Coal O p e ra to rs’ A s s o c ia tio n ); W . E.
Davis, L ex in g to n , K y., president, D avis Collieries C o .; W . A . E llison, K noxville, T enn., vice-president, M ahan-E llison Coal C o rp o ratio n ; R.
S. G raham , N o rto n , V a., vice-presi- dent, W ise Coal & Coke C o .; R. H . M orris, A n sted , W . Va., general m anager, G auley M o u n tain Coal C o .; M. W . S ta rk , C olum bus, O hio, vice-president, R ed Jack et Consoli
dated Coal C o.; J. W m . W e tte r.
P h ilip sb u rg , P a., general m anager, M ad eira H ill Coal M ining Co., R.
H . Sherw ood, president, C entral
•Indiana Coal C o .; D. A. T h o m a s ; and C. E . Bockus.
In his discussion o f local associa
tion activities, M r. M o rris s a id : “ It would appear th a t the tim e is at hand w hen we m u st find new uses fo r coal or, perhaps b etter, re su rre c t old uses, and adopt new m ethods in o rd e r to expand the m arket fo r coal.” T he trade-practice m ovem ent and m e r
chandising activities a re ham pered by
th e fre ig h t rate situation and the d iv ersity in the kinds o f coal p ro duced. M r. S herw ood rem arked.
T o uching on P re sid e n t H o o v e r’s statem en t at th e A m erican F e d e ra tion of L ab o r convention in Boston, M ass., O ct. 6, th a t if the reg u lato ry law s be at fault in allow ing d e stru c tive com petition in the coal in d u stry ,
“ they should be rev ised ,” he said th a t some kind o f regulation m ight be of benefit, and th a t loose th in k in g 0 11
the su b ject m ay obscure the benefits w hich m ight accrue. M r. B ockus voiced the opinion, how ever, th a t the question of regulation cannot p u t aside the law of supply and dem and.
P ublic utilities have been successful u n d e r regulation, he said, b u t they have had the advantage o f a steadily ex p an d in g m arket. T h e real problem in the coal in d u stry is to a d ju s t p ro duction to dem and.
/ ^ O - O P E R A T I O N betw een the coal in d u stry and the heating- equipm ent in d u stries th ro u g h the agency of the C om m ittee o f T en — Coal an d H ea tin g -E q u ip m e n t In d u s
tries and the place o f the autom atic sto k er in the p resent m erchandising plans of the coal in d u stry w ere the them es o f the second form al session, in the m o rn in g o f O ct. 16, w ith W . D. B rennan, S alt L ake City, U tah , p resid en t, U tah F uel Co., in the chair.
T h e discussions on the sto k er p ro b lem are treated on page 673 o f this issue o f Coal A g e .
T erm in g the Shipstead an ti-in ju n c tion bill as p rim arily class legislation, A tto rn e y H e n ry A dam son, T e rre H a u te , In d ., w ho addressed the a fte rn o o n session presided ov er by
H . L. F in d lay , Cleveland, O hio, vice- president, Y oughiogheny & O hio Coal Co., asserted th a t th e proposed m easure invaded the field o f state legislation and “ recognizes only the coercion o f th e em ployer.” T w o co n stitu tio n al questions are presented by the bill, one o f w hich— th e rig h t o f an em ployer to m ake m em bership in a u n ion a condition o f em ploy
m ent— has been upheld by th e courts, the m ost recent decision being in the p resent y e a r in the S uprem e C o u rt o f M assachusetts. T h e second con
stitu tio n al question is concerned w ith th e rig h t of C ongress to lim it the ju risd ictio n o f a co u rt o f equity to the e x ten t proposed in the p resen t bill.
T he rest o f th e afte rn o o n w as given over to a fo recast of th e fu tu re o f the in d u stry . “ W h a t’s A head in R esearch ” w as discussed by D r.
T hom as S. B aker, president. C a rn e gie In s titu te o f Technology. T h e
— C O A L A G E 657
outlook 111 p ro d u ctio n w as analyzed by J o h n B. D ilw o rth , E . V. d ’ln v il- liers E n g in e erin g Co., P hiladelpia, P a ., and th e b a n k e r’s view point w as outlined by Jam es L. W alsh , vice- p resid en t, G u ard ia n D e tro it B ank, D etro it, M ich. T h e se addresses are ab stracted on page 663 o f th is issue o f Coal A g e .
T
H E trad e-p ractice m ovem ent w as the first su b je ct considered a t th e closing session, O ct. 17, p resided over by A . J . M oorshead, Chicago, p resid en t, M ad iso n Coal C o rp o ratio n . F o llo w in g th e re p o rt o f E . C. M ahan, K noxville, T en n ., p resid en t, S o u th ern Coal & Coke Co., and ch airm a n o f th e tra d e - p ractice section o f th e M a rk e t R e search In s titu te o f th e association, A b ra m F . M y ers, fo rm e r F e d eral T ra d e C om m issioner, sum m ed up the“ L a te st D evelopm ents in th e T ra d e - P ractice M o v em en t.” A sse rtin g th a t h e still believed, as he did a few y ears ago, th a t th e coal in d u stry along w ith som e o th e r m ineral g ro u p s should be ex em pted fro m ex istin g a n ti-tru s t law s an d special provisions m ade f o r th e ir op eratio n w ith p ro tectio n to th e public, M r.
M y ers conceded th a t th e h isto ry of g overnm ent reg u latio n did little to m ake it acceptable to business in g eneral. T h is criticism “is now here b e tter illu stra te d th a n in recen t d e
velopm ents in tra d e-p ractice c o n fe r
ence w o rk .”
A f te r ex p an d in g th e tra d e-p ractice co n feren ce w ork, th e F e d e ra l T ra d e Com m ission, said its fo rm e r c h a ir
m an, suddenly abandoned its helpful policy of co-operation by announcing com m ission-m ade revisions o f th e trad e-p ra ctice co n feren ce rules. So serious w e re th e effects o f th is change o f fro n t th a t th e in d u stries concerned w ere recently im pelled to fo rm a p rotective alliance, o u t o f w hich g rew th e C ongress o f I n d u s trie s w hich recen tly held a m eeting o f p ro te st a t N ia g a ra F alls.
A ccording to p ress re p o rts, th e C om m ission based its action on rep resen ta tio n s m ade to it by th e D e p a rtm e n t o f Ju stic e th a t tra d e - practice co nference rules w ere e ith er c o n tra ry to th e S h erm a n law o r w ere being applied in a n u n law fu l m anner.
“ R ecent developm ents,” declared M r.
M y ers,” tend to d iscred it this theory, because th e D e p a rtm e n t o f Ju stice in fra m in g th e consent decree in U nited S ta te s v . S ta n d a rd O il Co.
o f C alifornia et al., in th e U n ited S tates D istric t C o u rt a t S an F r a n cisco, has, in effect recognized the
validity and le ft w holly u n d istu rb ed a tra d e-p ractice rule o f th e p e tro leum in d u stry th a t is possibly the m ost sw eeping and questionable ever received by th e F ed eral T ra d e C om m ission u n d e r its p ro ced u re.”
R u le 17 o f G ro u p I I of th e p e troleum in d u stry provides in su b stance “th a t all refiners and all d is
trib u to rs, jobbers, and w holesalers should post, a t all p o in ts o f delivery, th e prices a t w hich th ey w ould m ake delivery of gasoline an d o th er p e
tro leu m p ro d u cts and th a t th e o p e r
a to rs o f service statio n s, etc., should p o st th e prices a t w hich such p ro d ucts w ould be sold. I t also provides th a t no seller should m ake an y devia
tion fro m his posted prices ‘by m eans o f rebates, allow ances, bonuses, con
cessions, benefits, u nusual credits, scrip books, o r an y plan, device, o r o th e r schem e w hich m ay d irectly or in d irectly p e rm it th e b u y er to obtain gasoline o r k erosene a t a low er net cost to h im .’ ” In o th e r w o rd s, ob
served M r. M yers, th e ru le is so sw eeping as to preclude an y devia
tio n fro m th e posted prices.
“ T h e fa c t th a t th e C a lifo rn ia de
cree did n o t en jo in an y practices prescrib ed by th e rule, b u t only, p ra c tices w hich, if carrie d on u n d e r cover o f th e rule, w ere a clear abuse of it, establishes th e v alid ity of th e rule and affo rd s a valuable p rec ed en t” in elim in atin g u n fa irn e ss w ith o u t fe a r o f law violation. W ith th e validity o f tra d e -p ra ctic e rules established by th e C a lifo rn ia decree, th e only h a n d i
cap o f th e p ro ced u re f o r th e elevation o f business confidence is th e “ u n c e r
ta in ty an d d o u b t” w ith w hich it has been su rro u n d e d by th e C om m ission itse lf.
“ T N V I E W of th e cloud o f u n cer- JL ta in ty w hich envelops th e a ttitu d e o f th e C om m ission an d th e fu tu re of th e tra d e -p ra ctic e co n feren ce w o rk ,”
th e ho ld in g o f a co n feren ce a t p resen t by th e bitu m in o u s in d u stry w ould be inadvisable. H o w ev er, said M r.
M yers, “to th e e x te n t th a t a code o f business ethics will help you in th e solution o f y o u r problem s, I bid you fo rm u la te th e code in y o u r ow n w ay, u n d e r th e advice o f y o u r ow n counsel and w ith o u t re feren ce to any ex istin g com m ission o r b u reau . Y ou hav e th e assu ran ce th a t th e public is a w are o f th e conditions in y o u r in d u stry , an d w ill app ro v e all fa ir an d reasonable m easu re to im prove th o se con d itio n s.”
T h e com m on in te re sts o f th e ra il
roads and th e b itu m in o u s coal in d u s try w ere th e su b ject o f pap ers
by T . D u ff S m ith, C leveland, O hio, lake fo rw a rd in g agent, C anadian N atio n al R a ilw a y s; J . D. F ra n c is H u n tin g to n , W . V a., vice-president, Islan d C reek Coal C o .; an d C o n rad E . Spens, Chicago, executive vice- p resid en t, Chicago, B u rlin g to n &
Q uincy R .R ., ab stracted on page 674 o f th is issue o f Coal A g e .
“ T h e deflationists have replaced th e ‘N ew E r a ’ en th u siasts o f last y e a r in th e saddle of A m erican b u si
ness, and th ro u g h th e tra g ic fa ilu re of intelligent p ro g ressiv e leadership d u rin g th e crucial m onths, since Ju n e , w e a re now faced w ith the d an g ers o f reckless an d uncontrolled deflation, w hich a re m ore serious th an th o se o f excessive inflation,” said V irg il Jo rd a n , N ew Y o rk C ity, econ
om ist fo r th e M cG raw -H ill P u b lishing Co., in his ad d ress on “ T h e B u siness B ack g ro u n d o f th e Coal M a rk e t.” A s th e fo u rth q u a rte r begins, hopes f o r business recovery in th e p resen t y e a r have been d isa p pointed, a n d such recovery ap p aren tly has been d e fe rre d u n til sp rin g o r la te r in 1931. L ittle h o p e should be held o u t of assistance fro m th e gov
ern m en t, and th e business system m u st m eet th e crisis by itself and d em o n strate its capacity fo r con
stru c tiv e action by individual le a d e r
ship a n d o rganized co-operation fro m th e bottom up in each in d u stry and by re fu sin g to s u rre n d e r to th e p re s
su re f o r deflation.
C
O A L is in a stro n g e r position to re sist dep ressio n because, like textiles, it has several y ears of deflation behind it. “ B u t m o re th a n any o th er in d u stry ex cep t electric po w er an d railro ad s, its m a rk e tin g problem is d eterm in ed by th e backg ro u n d of gen eral business co n d i
tions, and by th e changes in p ro d u c tion and m a rk e tin g m ethods w hich a re going on in all lines o f in d u stry a n d tra d e . I t can cope w ith th ese changes only by re fu sin g to s u rre n d e r to th e p re v alen t fatalism and re sig n atio n o f a deflation p erio d and b rin g in g v igorous individual in itia
tive an d o rganized effo rt to b e a r to w a rd m ain tain in g a n o rd erly m a rk e t th ro u g h m ore econom ic p rice p ra c tices, im proved selling o rg an izatio n , an d b e tte r in fo rm a tio n on coal d is tr ib u tio n ; to w a rd in creasin g th e flexibility an d stability o f th e m a rk e t by vertical an d in te r-d istric t in te g ra tio n ; to w a rd ex p a n d in g th e m a rk e t th ro u g h developm ent o f serv icin g activities a n d in ten siv e research to develop new uses .for coal a n d coal p ro d u cts.”
65S C O A L A G E — Vol.35, N o .l 7
AFTER COAL, WHAT?
+ Clearfield Company Says
“ Tim ber/' and Plants Trees
I
N T H E early days, w ith the acquisition o f m ineral acreage m any of the coal com panies cam e into pos
session of large tra c ts of fo re st land.
T h o u g h these com panies little real
ized it a t the tim e, they held in the tim b er a resource w hich to them selves and to the natio n w as o f im portance second only to the coal. L ooking back in retrospection, it w ould have been a h appy com bination if th e p ro duction o f lum ber fro m su rface lands and o f coal fro m u n d erg ro u n d could have been carried on sim ultaneously u n d e r one m anagem ent. T h e consoli
datio n w ould have been advantageous in th a t coal m ining is a m ain depend
en t o f the lu m b erin g in d u stry fo r the supply o f tim bers w ith w hich it su p p o rts ro o fs over the underg ro u n d w orkings. E conom ies in production m ig h t have been realized because both occurred on the one p ro p erty . Still m ore im p o rta n t fro m the economic aspect, the fo rests m ight have been m aintained as an inexhaustible re
source, th o u g h d ra w n upon co n tin u ously fo r a yield o f lum ber, w ith the selective m ethods of cutting.
T h is p roposition of dual interests verges close to the idealistic and w as view ed as im practicable fo r those days. M in in g w as fo r m ining m en and lu m b erin g fo r lum ber m en. Also, w as n o t th e su p p ly of tim b er fo r m in
ing and o th e r com m ercial uses p rac
tically in ex h au stib le ?
T h e fra m e o f th is th in k in g is im p o rta n t to a lucid com prehension of the aim s and m otives of th e Clearfield B itum inous Coal C o rp o ratio n , sub
sid iary of the N ew Y o rk C entral R .R ., in its fo re s try p ro g ram covering su rfac e lands in cen tral P ennsylvania.
T h is corporation and its predecessor, the Clearfield B itum inous Coal Co., w itnessed m uch ruthless destruction o f th eir fo rests by lum bering in ter ests to w hich the sta n d in g tim b er w at sold a t nom inal prices. L ittle sig nificance w as attached to su d i d e struction because the rem aining tim ber supply appeared ample. T h a t w as prio r to 1900, w hen the railro ad com pany acquired control. In th e years following, how ever, m ine tim ber, which a t first w as bought at a cost of little m ore th a n th a t fo r the labor o f cu ttin g it, w as becom ing increasingly expensive and difficult to obtain.
In 1920 a fo re stry d ep artm en t w as established fo r the purpose o f con-
Adequate Seasoning Is Assured by K eeping a Y ear’s Reserve
o f Tim ber
D ozen s o f Seedlin gs Are Planted for Every T ree Felled
serv in g the stan d in g tim ber and m ak ing new plantings on som e 24,000 acres o f su rfa c e land. A p ortion o f th is acreage w as covered w ith fully m atu red tim ber, o th er p o rtio n s w ith im m ature second g row ths, and th e re m aining areas w ere partially o r en
tirely b a rre n . In th e last ten y ears m ore th an fo u r m illion seedlings have been set out, and the e n tire acreage is now covered by tim b er in all stages of g ro w th , from m a tu re trees to 2- to 3-year-old seedlings. T h e p lan tin g has covered b a rre n tra c ts which, com bined, to tal an area o f 4,136 acres.
T h is are a does n o t rep resen t the e n tire acreage refo rested , because m any o f the trees have been planted to fill in b a rre n o r th in spots in the m idst o f n a tu ra l g ro w th .
A s a t first visioned, this fo re stry p ro g ram w as intended as a provision to in su re a supply o f tim b er fo r m in
ing purp o ses d u rin g the life o f th e coal p ro p erties. T h a t view point has since been altered. B y a su stain ed - yield plan, now functioning, tim b er dem ands of the coal operatio n s are filled by selective cu ttin g w hich does n ot d e tra c t from th e u ltim ate value o f the forests.
A n estim ate places the p resen t value o f the tim b er a t about $1,500,- 000. W h en th e coal is com pletely gone, the tim b er will have an esti
m ated value of $5,000,000 to $7,000,- 000. U n d e r the plan, the tim b er will rem ain a perpetual resource of con
stan tly increasing value. A ll of th is
N ovem ber. 1930 — C O A L A G E 659
In the Sawmill at Clymer
is b u t an o th er w ay of statin g th a t the com pany has been p lan n in g an d a c t
ing to resto re its su rfa c e lands to m uch the sam e state of its original v erd u re. It w ould th en have th e op
p o rtu n ity , entirely m issed by coal com panies in the past, of profiting from tim b e r resources, though the coal be gone.
A t first, seedlings w ere obtained fro m the sta te n u rseries. In 1924 the com pany established its ow n n u r series, consisting o f 7-| acres n ear C lym er, P a., in w hich a re g ro w n m ore th an the n u m b er of seedlings required in the re fo re sta tio n w ork.
T h e surplus is sold to outside in te r
ests. T h is n u rse ry is in charge o f a g ra d u a te fo re ste r who also acts as a consultant on fo re stry questions.
P in es of the hard varieties, it has been found, are the m ost desirable of the w oods w hich give satisfactio n in u n d erg ro u n d service and a t the same tim e th riv e best in th e soil available fo r planting. W h en treated , they are excellent fo r m ine ties and they serve well fo r m ine tim bering. T h e v a ri
eties planted, in th e o rd er o f th e ir relative im portance, a re : ( 1 ) pitch pine, ( 2 ) Scotch pine, ( 3 ) B anks pine, 4 ) red pine, an d ( 5 ) w hite pine. T h e first th re e o f these are ideal fo r high elevations, w here the soil is light and dry. Such tree s as the spruces are used fo r filling in w here u n d erg ro w th is thick and little sunshine penetrates.
S eedlings are set out at intervals o f 5 ft.— w hich is m uch too close fo r norm al fo re st grow th-—because close plantings crow d out u n d erb ru sh and m inim ize the fire h azard. A f te r about fifteen years these p lan tatio n s can be thinned o u t an d the c u ttin g s m ade into m ine ties and props. O th erw ise, it is a case o f the survival o f the fittest.
T h e com pany has no qualm s about cu ttin g fully m atu red trees, know ing th at fo r each such tre e felled it has planted dozens o f seedlings. P ro te c tion of the fo re st is aided by th e re moval o f undecayed fallen tim ber, by
should go fa r to encourage invest
m en t in w oodland en terp rises is the availability of forest-fire insurance, and the plan tatio n s of this com pany are th u s covered. T h e R epublic F ire In su ran ce Co., P ittsb u rg h , P a., issues a policy a t a basic p rem iu m ra te of 2 p er cent, w ith credits and charges for specific conditions and practices.
In addition to the reg u larly estab
lis h e d p atro ls fo r the p rev en tio n o f forest fires, the fo re ste r and m en in au th o rity a t the m ills and in the w oods are sta te appointed fire w a r
dens. M ine su p erin ten d en ts also are state-ap p o in ted fire w ard en s w hose duties are to look a f te r the plan tatio n s located close to the m ines.
R e fo re sta tio n is encouraged in P en n sy lv an ia by a recent act w hich considers certain tim b er-b earin g lands as a u x ilia ry fo re st reserves and, as such, assesses them at only $1 an acre. T h e ta x b u rd en on th is land does n o t exceed Sc. p e r acre. T h is schedule is m ade feasible by a d e fe rre d ta x charge o f 10 p er cent of stum page value applicable w hen the tim b er is cut.
I
T his Retort Treats 100 T ies at a T im e U sin g W o lm a c Salts
the establishm ent of fire trails, lanes, an d roads, by the erection of fire tow ers, and by the em ploym ent of fire pa tro ls d u rin g fire seasons. T h e com pany protection system is con
nected by telephone to th e state fire tow er svstem . O n e fa c to r w hich
N S O M E q u a rters, it is held th a t the p la n tin g o f seedlings is an alm ost useless expense and w aste o f effort, and th a t fo re sts will rep ro d u ce th e m selves. N a tu re ’s pow ers o f re p ro d u c tion are not denied by th e p lan tin g practices o f this com pany, w hich, how ever, holds th a t n a tu re can be a s sisted in h e r atte m p ts a t p ro p ag atio n o f tre e gro w th . N a tu ra l g ro w th is largely relied on to continue th e areas already heavily w ooded, but com plete cover
age is aided by planting. T h e re are denuded areas, such as th e slopes con
tiguous to m ine plants, w hich will n o t p ro p erly take care o f them selves.
U n less such areas a re planted, trees w ill be slow to ap p e ar o r m ay be scrubby. T h en , too, th e re is the point o f ad ap tin g to th e reg io n fo reig n
Props Are Trucked From the W o o d s to the M in e Plants as N eed ed
660 C O A L A G E — V ol 35, N o .l l
Interior o f the F in ishing M ill species, w hich a re m o re profitable
than those th a t are indigenous.
A n exam ple o f this is th e p lan tin g o f B anks pines. T h ese trees, w hich are n o t native, have rap id vertical g ro w th and one day will su p p lan t the sp ru ce now im p o rted fro m th e N o rth w est fo r use as transm ission-line poles.
T h e larg est single tra c t consists of 15.000 acres a t G rassflat, in Clearfield and C en ter counties. N o rth o f P a t
ton, in C am bria and Clearfield coun
ties, is a tra c t o f 4,500 acres, and at Gazzam , in C learfield C ounty, th ere is one of 1,500 acres. T h e rem aining 3.000 acres a re m ade u p o f sm aller tra c ts larg ely in the vicinity of m ines.
A t C lym er, w hich is n e a r In diana, P a., and th e cen ter of m ining o p era
tions, a re located a m ill pond f o r the sto rag e of logs, a com pletely equipped saw m ill, a plan in g mill, a finishing mill, and also a tre a tin g plant. N ot f a r fro m th is p lan t g ro u p is the com p an y ’s cen tral m achine shop, w here, am ong o th er th in g s, m ine cars are b uilt of wood shaped in th e finishing mill. I n this m ill all the pieces going into the body o f the car a re finished to size and delivered to th e m achine shop re ad y fo r assem bling. In the finishing mill also m ine doors are com pleted read y fo r h a n g in g un d er-
g ro u n d . Incidentally, these doors a re p ain ted w ith a solution of W ol- m an salts (■£ lb. o f salt to 10 lb. of so lu tio n ) w hich is applied w ith a b ru sh . I n th is p lan t also a re made sprags, s a fe ty blocks, tro lley poles, sw itch boxes, w indow an d d o o r cas
ings, in sid e house finish, porch floor
ing, and o th e r item s. T h e porch floor
in g is 1-in. oak, 4 in. w ide, surfaced
on tw o edges and one side. It is laid w ith about a ^ in. clearance fo r v en tilation and prevention o f ro ttin g of the joists. I t is given p re ssu re tr e a t
m ent, as also a re the d r if t tim bers, trolley g u ard s, tim bers, lagging, and m ost o f the m ine ties.
F u n ctio n in g behind th e operation of these plan ts is th e idea o f keeping stores of tim ber and lum ber on hand
about one y ear ahead of the dem ands of the m ines. T h is provision allows adequate seasoning and perm its the scheduling and co-ordinating of log
ging, m illing and p reserv ativ e-treat- m ent operations in line w ith w eather conditions. A n attem p t is m ade to do m ost of th e m illing and p re serv a
tive treatm en t in w arm w eather, w hen few est delays a re encountered and the
wood is n o t fro zen b u t is in best condition fo r handling. T h e m anage
m ent has learned to calculate in ad
vance, w ith in a few th o u san d feet, how m uch tim ber th e m ines w ill need in a com ing year.
E ig h t m en a re em ployed a t th e C lym er p lan t and divide th e ir tim e betw een saw ing and m illing an d p re servative tre a tm e n t o f tim bers. P e r m anent tim b er sets used u n d erg ro u n d are fram ed by these m en a t th e mill, read y fo r erection.
In n ear-b y w oods a crew o f th ree to six m en is m aintained a t felling trees and cu ttin g props. I n th is w o rk a team o f h orses an d tw o tru c k s are em ployed. T h ey are used fo r haul- in g logs in the w in te r and fo r the purp o ses o f p lan tin g in the sum m er ; also fo r h auling lum ber supplies to the m ines.
M o st o f the large-scale logging is done in th e G rass F la t tra c t, w hich is ab o u t 90 m iles n o rth e a st o f C lym er.
H e re about 22 m en are em ployed in logging operations and in rough m ill
ing. L ogs are g ath ered by tw o team s o f horses and are hauled fro m the w oods by tw o gasoline locom otives over a n arro w -g ag e tra c k w hich has a to tal length of about 20,000 ft. A sm all ro u g h in g mill is in op eratio n a t this tra c t, w here a lim ited n u m b er of ties and sim ilar ro u g h pieces are tu rn e d out. L ogs and su rp lu s lum ber fro m th is o p eratio n are shipped by railro ad fo r storage and use a t the C lym er plant.
D espite th e abundance o f its su p ply of tim b er fo r m ine use, the co r
p o ratio n m akes a re g u la r practice of tre a tin g ties and p erm an en t tim b er used in th e m ines. T o conserve its tim ber supply is only one reason w hy T he Company G row s Its O w n Seedlings
N ovem ber, 1930 — C O A L A G E 661
Treated Tim bers Are Subjected to Pressure o f 186 Lb. for 1 to 1 | Hr.
this practice is follow ed, m ore im p o r
ta n t being th e saving in labor attached to th e replacem ent o f these pieces.
T h e decision to install a tr e a tin g p lan t w as aided by th e influence o f the railro ad com pany and by th e e x p e rience o f the coal com pany w ith d r if t tim b ers an d lagging w hich w ere tre a te d by dipping. O ccasion w as had fo r rem oving som e of these a f te r fif
teen y ears o f service. O n e x am in a
tion th ey w ere fo u n d to be in an excellent state o f p reserv atio n . U n d e r sim ilar conditions u n tre a te d tim bers w ould have lasted a m axim um of
lbout six years.
T re a tm e n t is by th e p ressu re sy s
tem u sin g equipm ent fu rn ish e d by the U n ited W ood T re a tin g C orporation o f Chicago. W olrnan salts are used
exclusively as th e im p rég n an t. T h e pieces are subjected to an initial v ac
uum o f 26 in. f o r ab o u t 30 m inutes, follow ed by a p re ssu re o f 186 lb. p er sq u are inch applied fo r 1 to 1£ hours.
D u rin g th e process, th e re to rt atm o s
p h ere and th e solution a re k ep t a t a te m p e ra tu re o f ab o u t 130 deg. F . Pieces are w heeled on sm all n a rro w - gage cars in to th e re to rt, w hich is 18 ft. long, 4 ft. in d iam eter inside, and w ill hold th re e cars o f ties (a b o u t
100 tie s ), each 5 in. x 6 in. x 5 ft.
W ith th is system , th e p en etratio n am ounts to 10 to 12-| lb. of solution p er cubic foot. T h e co n cen tratio n used fo r ties is ab o u t lb. o f salts to 10 lb. o f so lu tio n ; th a t f o r d r if t tim bers is -£■ lb. o f salts in 10 lb. o f so lu tion. T re a tm e n t o f th e so ft wood
takes about 1£ h o u rs an d th a t o f hard wood about 2 hours.
T h re e sta n d a rd sizes o f ties, all 5 ft. long, are used in th e m ines o f this com pany. I n cross-sections these m easu re 4x5 in., 5x6 in., an d 6 x 7 in.
respectively. T h e tw o larg est sizes a re used on p erm a n e n t haulage roads and inv ariab ly a re tre ated . T h e y are m ade o f an y kin d o f sound h a rd w ood o r pine. T ie s fo r room en tries are o f th e sm allest size. T h e y a re in v a r
iably m ade o f oak and a re never tre a te d . Steel ties a re laid in room track.
A ll m ine ties a re saw n. T h e saw n tie has been adopted as a sta n d ard because it is felt th a t, in ad d itio n to g iv in g a longer life an d being m ore readily susceptible to tre a tm e n t, it m akes fo r econom y in th e jo b of lif t
in g and p re p a rin g bo tto m fo r m ine tracks.
A cco rd in g to an estim ate o f the C learfield B itu m in o u s Coal C o rp o ra
tion, p ro d u ctio n o f one to n o f coal fro m its m ines req u ires th e consum p
tion o f 4 b o ard feet o f lum ber. T h is q u an tity includes th e tim b er an d lu m ber in co rp o rated in all su rfa c e stru c tu re s, p lan t buildings, and dw ellings.
_ T h e com pany has been d o ing co n siderable conveyor and sc ra p e r m in
ing. I t has in d ep en d en tly d eterm ined w hat is know n as a fact, th a t m echani
zation has served to decrease th e con
su m p tio n o f tim b ers in m ining. In addition, it has fo u n d th a t m echaniza
tion also dem ands a h ig h er qu ality of prop. I n this respect th e com pany is fo rtu n a te in being able to supply its ow n needs to a ssu re q uality. T w o g ra d e s of p ro p s are requisitioned, one fo r o rd in a ry use an d th e o th e r fo r special purposes.
T w o G rades o f Props A re F urnished; O ne for Ordinary U se and O ne for Special Purposes
662 C O A L A G E — Vol.35, N o .i l
WHAT'S AHEAD
+ In Bituminous Coal Industry Forecast At Annual Operators' Convention
O
P T I M I S M as to th e fu tu re o f bitu m in o u s p roduction and recom m endations th a t coal p ro d u c e rs m erge w ith th e chemical a n d processing in d u stries to p a rticip ate in every possible so u rce of p ro fit w ere in term in g led a t the ses
sion on fu tu re tre n d s of the in d u stry a t th e th irte e n th annual m eeting of th e N atio n al Coal A ssociation, D e
tro it, M ich., O ct. 16.
A n early resu m p tio n o f th e u p w ard tre n d in bitum inous consum ption w as pred icted by Jo h n B. D ilw orth, E . V . d ’In v illiers E n g in ee rin g Co., P h ila delphia, P a ., w ho declared th a t it
“ seem s a reasonable expectation th a t th e annual dem and fo r bitum inous coal avill ap p ro x im ate 600,000,000 to n s by 1934, 700,000,000 tons by 1937, an d 800,000,000 tons by 1940.”
T h e im m ediate cause of the dep res
sion in th e coal in d u stry is overde
velopm ent, M r. D ilw o rth asserted, a n d one of the m ost po ten t outside fa c to rs in this condition has been the sto p p ag e in th e g ro w th o f consum p
tio n in th e la st decade.
T w o causes have operated to b rin g ab o u t th is sto p p a g e ; g re a te r efficiency in th e use o f coal and th e in ro ad s of su b stitu tes. R ed u c tio n in coal con
su m p tio n p e r u n it o f pow er, in the opinion of M r. D ilw o rth , has now reached a p oint, how ever, w here f u r th e r econom ies will be relatively small a n d costly. A s , a su b stitu te f o r bi
tu m in o u s coal, an th ra c ite is w aging a losing fight, because o f the rising costs o f hard-coal p roduction. B u t oil, since 1920, has c ap tu red 11 p er ce n t o f th e 16 p e r cent o f th e coun
t r y ’s total en erg y p ro d u ctio n lost by coal. W h ile th e re is no im m ediate p ro sp ect o f decreasin g o u tp u t, th e co st o f p ro d u c in g oil is rising, and m o re an d m ore is being m ade into
fuel fo r internal-com bustion engines.
W ith th e increased recovery o f g aso line, fuel oil, w hich is a byproduct, will becom e scarcer, and as th e cost of crude increases, refineries will have less desire to sell th eir p ro d u ct in the fo rm o f oil fuel.
N atu ral-g as d istrib u tio n has in creased sharply recently. P ip e lines are u n d e r co nstruction o r a re p ro jected fro m th e M id -C o n tin en t field to C en tral and E a ste rn states w ith a capacity o f 1,325,000,000 c u .ft. of gas daily. H o w ev er, said M r. D il
w o rth , if these w ere all b u ilt and o perated a t capacity, th e ir annual gas delivery w ould am o u n t to only 18,- 000,000 tons o f coal, o r 3.5 p er cent o f th e p re se n t bitum inous o u tp u t. In addition, it is n o t certain th a t this q u an tity of gas will be delivered.
E stim ates indicate th a t th e tw in 24-in. 1,000-m ile pipe lines fro m T e x a s to Chicago m u st yield the ow ners ab o u t 40c. p er 1,000 cu.ft.
a t Chicago b efo re an y m anagem ent profit can be realized. A n d 40c. gas corresponds to a m edium -grade coal a t a retail price o f $10 a ton, w hich
“ is f a r above th e profitable price fo r good coal in th a t city.”
B ankers have an in te re st m ore th a n sentim ental in a g re a t v ariety o f businesses, said Jam es L . W a lsh , D e
tro it, M ich., vice-president, G uardian D e tro it B ank. I n “ looking over the re tu rn on invested capital in various in d u strial en terp rises fo r th e first h a lf y e a r o f 1930, as com pared w ith a sim ilar period in 1929, w e run across som e co n trasts in p erfo rm an ce w hich should a t once excite our curiosity an d challenge serious in
vestigation.” T h ese are show n in the accom panying table.
“W h y should G eneral M o to rs in 1929,” asked M r. W alsh , “ show an
annual ra te o f re tu rn o f 34.4 p e r cent, as co n trasted w ith 11 p e r cen t fo r U . S. Steel d u rin g th e sam e period, o r G eneral M o to rs d u rin g 1930 show 22 p e r cent a g ain st U . S.
S teel’s 7.1 p e r cen t? Is this d isp arity due entirely to th e fact th a t U . S.
Steel is selling staples w hile G eneral M o to rs is selling specialties? Is it due to th e fa c t th a t n e t profits are m agnified to an unusual degree by relatively slight increases in ‘value added by m a n u fa c tu re ’ ? O r is it due
Annual R ate of Return
Number of p er C ent
Companies Industry 1929 1930
1 Iron and Steel— U.S. Steel 11.0 7.1
31 Iron and Steel— O ther 11.6 6.1
1 Automobiles— General
M otors... 3 4 .4 2 2.0
20 Automobiles— O ther 2 3 .8 6 .0
20 C hem icals 18.8 13.1
14 D rugs and Sundries 2 1 .0 6 .0
35 Petroleum ... 9 .3 5 .2 7 Coal M inin g... 3 .3 0 .9
to th e fa c t th a t th e autom obile execu
tive o f to d ay is a m ig h ty good m e r
chant, in addition to being an excel
lent m a n u fa c tu re r? ” T o dism iss the bad show ing o f coal by saying too m any m ines and too m an y m in ers
“is no an sw er to a b an k er w ho m ay be expected to loan som eone else’s m oney fo r th e possible im provem ent o f a n in d u stry .”
D espite ap p aren tly gloom y sta tis
tical tren d s, declared M r. W alsh ,
“ resourcefulness and courage in a t
tacking th e problem s o f the in d u stry to d ay m ay w ork to th e u ltim ate a d vantage o f all concerned. E ven ad m ittin g th a t the econom ic value of coal is to be confined to utilizatio n as fuel, have we ex h au sted th e possi
bilities o f enlisting th e co-operation o f those o th e r g ro u p s w hich hav e a vital interest in solving th is p a r
ticu la r problem ? I t w ould seem th a t th e first th in g to do is to d eterm ine w h at o th er in d u stries have a com m on in tere st in solving o u r problem s
N ovem b er, 1930 — C O A L A G E 663
question as to w h e th er the successful coal com panies o f th e fu tu re will n o t be o rganized on a ‘m in er-m an u fac- tu re r-m e rc h a n t’ basis th ro u g h vertical in teg ratio n ex te n d in g fro m o w n er
ship o f coal reserves, o p eratio n of m in in g equipm ent, processing o f coal as a raw m aterial, developm ent of new d erivatives and b y products, cre
atio n th ro u g h m a rk e t research o f de
m and fo r the. w hole fam ily of coal, pro d u cts, and d istrib u tio n of these p ro d u cts th ro u g h a m odern, efficient, m erch an d isin g o rg an izatio n follow ing th e stra ig h te st possible channels fro m coal in the g ro u n d to th e u ltim ate consum er.”
T h e coal o p erato r as a m a n u fa c tu r e r also w as touched upon by D r.
T h o m as S. B aker, P ittsb u rg h , P a., president, C arnegie In stitu te o f T ech-
T
nology, in a review o f research activi
ties here and abroad. “ I realize,” he said, “ th a t th e re a re m any com plica
tions to be ad ju ste d w hen th e coal m an d ep arts fro m his trad itio n al w ork o f m in in g an d se llin g : th e find
ing of m ark ets fo r th e new pro d u cts, the d isarra n g em en t o f established m ethods, the risk o f insufficiently tested new processes, th e in e rtia of trad itio n . B u t th e p re se n t condition of business seem s to dem and th e con
sid eratio n o f every possible o utlet fo r the su rp lu s o f o u r m ines. I t should be noted th a t o th er in d u strie s are finding it adv an tag eo u s to purch ase and w o rk coal m ines. T h e chem ical in d u stry , th e coke in d u stry , th e fixed- n itro g en in d u stry , th e gas in d u stry a re d raw in g th e ir raw m aterials fro m m ines w hich they have acq u ired .”
T T
DIESEL Power for Price Hill
(Continued from page 655) on a perm an en tly fa ir an d sa tisfa c
to ry b asis; to ask them to fo re g a th e r w ith us in a frien d ly , ro u n d -tab le discussion fro m tim e to tim e w ith a view clearly defining th e position of th e coal in d u stry in th e econom ic pic
tu re of to d a y ; to finding a m utually h elp fu l and profitable relationship w ith o th e r g ro u p s w hose p ro sp erity depends on th a t o f th e coal in d u stry , and eventually ascertain in g a basis upon w hich th e coal in d u stry can p e r fo rm its u sefu l and indispensable fun ctio n in th e civilized w orld, in r e tu rn fo r w hich it should— and m u st— be p e rm itted to e arn a reaso n able profit on its investm ent.
“ Still assum ing th a t w e a re th in k ing of coal solely as a fuel, w h a t a re th e en couraging and w h a t are th e d is
co u rag in g tendencies in o u r situ a
tio n ? F ir s t of all, I should say th a t since I first cam e in co n tact w ith the coal in d u stry th e re has been a decided im provem ent in th e a ttitu d e of the in d u stry to w ard custom ers, investors, employees, and to w a rd th e public generally. C an w e n o t by suprem ely conscientious conduct o f o u r ow n a f fa irs in th e coal in d u stry grad u ally w in a place in public esteem w hich shall, by legislative enactm ent o r judicial decision, help to rem ove some of th e h e re to fo re in su rm o u n tab le ob
stacles to p ro g ress w hich have b a rre d o u r w a y ? ” P re sid e n t H o o v e r, in his add ress a t B oston, M ass., O ct. 6, o u t
lined an o p p o rtu n ity fo r th e coal in d u stry to p u t its house in o rd e r and secure its place in th e sun.
A
N O T H E R en couraging fe a tu re is i- th e steady decrease in th e n u m b e r of m ines an d m in ers d u rin g the p a st five years, evidencing an acceptance of realities an d a fa d in g tr u s t in m iracles. “ T h e question n a tu ra lly arises as to w h eth e r a series o f con
solidations m ig h t n o t fu rth e r im prove the situ a tio n .” F u r th e r m e rg ers w ithin i d istrict w ould only serv e to in te n sify the alread y severe com petition. T h e m ore logical plan w ould be the m erg er of “ p ro d u cin g u n its selected fro m several districts, w ith a view to ob tain in g b e tter national coverage and co rresp o n d in g s h o rte r sh ip m en t to m a rk e t.”
B u t th in k in g o f coal m erely as a fuel is a needless lim itation o f the in d u stry ’s possibilities. W h ile it is n ot necessary to consider coal solely as a source of o th e r pro d u cts, th e sell
in g of w hich w ill b rin g a new e ra of p ro sp erity to th e in d u stry possibili
ties along these lines have n o t been ex plored to th e sam e e x te n t as in o th e r in d u stries. “ T h is raises the
tre ate d . S o d a ash an d a vegetable com pound a re added to th e m ine w a te r an d th e solids allow ed to se t
tle. T h eo retically , only a n insignifi
can t q u a n tity o f m ake-up w a te r should be req u ired , b u t th e w arm ja c k e t w a te r is used also by th e e n gineers f o r w ash in g h an d s an d o th er purposes, so th a t it has been fo u n d necessary to add ab o u t 1,000 gal.
p e r week.
F u e l oil is sto re d in tw o 16,000- gal. ta n k s located beyond th e cooling tow er. F ro m ta n k cars sp o tte d b e side th e engine house, th e oil flows to a ro ta ry pum p, located in a n ear co rn e r o f th e building, w hich forces it to sto rag e ta n k s on h ig h e r g ro u n d . T h ird -c u t fuel oil o f 28 to 30 Be.
g rav ity fro m th e C abin C reek d istric t is being used. T h e ra il haul is ab o u t 60 miles. A t p re se n t prices an d shipped in ta n k c a rs th e cost d e livered a t th e p lan t should n o t be over Sc. p er gallon o r $2.10 p e r b arrel (4 2 g a l.). O il used fo r lu b ri
cation m eets th e follow ing specifica
tio n : G rav ity , 25 ; flash, 430 deg. F . ; fire, 480 deg. F . ; viscosity a t 100 deg. F ., 3 6 5 ; viscosity a t 26 deg. F ., 5 5 ; p o u r test, 30. I t is m ade fro m
“ P e n n sy lv an ia” crude, w h ich m eans oil fro m a n y state in th e A ppalachian field. Specifically, th e p a rtic u la r lu b ric atin g oil now being used w as m ade fro m W e st V irg in ia Cabin C reek crude.
U su a l g u a ran tees on engines of
th is size as re g a rd s fu el oil co n su m p tion a re 46 lb. p e r h o rsep o w er-h o u r a t fu ll load, 50 lb. a t th re e -fo u rth s load, and 52 lb. a t on e-h alf load.
T h e o p e ra tin g fo rce consists o f one m an p e r sh ift. T h re e engines a re o p erated a t n ig h t, a t w hich tim e th e load averages 300 to 400 kw ., and all fo u r engines a re o p erated d u rin g th e day, w hile th e load is 500 to 900 kw . P e a k s im posed by th e 150-hp. coal h o istin g m o to r have p roved too m uch o f a n overload fo r th e p lan t, so a t th is w ritin g p u r chased p o w er is still b ein g used to o p era te th e h o ist d u rin g th e day.
B ecause th e s h a ft i s ' b u t little over 100 ft. deep, it is n o t necessary to o p erate th e h o ist continuously th ro u g h o u t th e d ay to h an d le th e p ro d u c tio n ; th e re fo re a load-lim iting device has been o rd ered w hich, ac
co rd in g to calculations, w ill a u to m atically cu t th e po w er fro m the ho ist fo r p erio d s o f a few m in u te s’
d u ra tio n eig h t o r te n tim es d u rin g th e day. A m e ter in d icatin g to tal p la n t load will be m o u n ted in fro n t o f th e hoist o p e ra to r so th a t he will n o t a tte m p t o p eratio n w hen a peak m ine load is evident. W ith th e aid o f this control eq uipm ent it is hoped th a t th e e n tire load can be c a rrie d by th e D iesel p la n t w ith o u t affecting p ro d u ctio n . E x p e rie n c e indicates th a t th e peaks should be lim ited to
1,060 kw . o r ap p ro x im ately 110 p er cent ra te d capacity o f th e plant.
C O A L A G E — Vol.3 5, N o .11
