i STEAM COAL - Clpdigital.org

36 THE COAL TRADE BULLETIN.
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THE PULSE OF THE MARKETS.
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The abrupt cessation of the indifference so long
manifested by coal consumers despite numerous
and timely warnings, coupled with the very general
reports of car shortage and unsatisfactory
transportation facilities, has made haulage capacity
the dominant factor in the coal market—a
position it probably will retain throughout the
winter season. It is only within the last fort :
night that many of the large buyers have begun
to realize that the advice given them weeks ago
was honestly intended and not fabricated for the
purpose of stimulating the market. Their awakening,
coming as it does simultaneously with the
general early winter demand and the complete
resumption of a vast number of large industrial
plants which have either heen wholly idle or Tuning
at fractional capacity, has had the effect of
crowding transportation facilities. Investigation
shows that practically none of the railroads is
in position to greatly improve its facilities in the
near future. This is due largely to the very general
stoppage of repair work on rolling stock
during the period of industrial depression and the
very general backwardness about resuming it even
to the extent of meeting current needs. Experience
proves that transportation conditions like the
present one invariably grow worse before the first
signs of improvement are shown and that the
troubles and annoyances caused are cumulative,
because the first indication of a rush and of difficulty
in meeting it, is always the signal for belated
buyers to make clamorous demands for immediate
large shipments whether their need is
urgent or not. The outlook, then, is that producers
will, for an indefinite but most probably
an extended period, have a market for all the coal
they can obtain haulage for and that prices will
continue to stiffen until transportation facilities
are fully equal to the demand upon them. The
brunt of the distress which now seems probable
will fall on those consumers whose dilatoriness is
responsible for present and expected conditions.
There is not the least ground for laying the responsibility
at the door of the producers because
it is universally known that they were well prepared
to forestall the possibility of insufficient
transportation. Moreover, they urged their customers
and the trade generally to take advantage
of the opportunity offered a short time ago when
prices were very low and transportation facilities
all that could be desired. In the movement of
bituminous coal to the lake loading ports from
the West Virginia, Fairmont. Western Pennsylvania
and Ohio fields there has been little change.
It is generally conceded now, however, that the
producing companies will be unable to move all
the coal they had expected to dock points before
the end of the season of lake navigation. With
a normal winter it is anticipated that dock supplies
of coal will be closely cleaned up at all points
next spring, and for that reason every effort is
being made to get coal forward to loading points
before the close of navigation. With only a
short time in wliich to forward coal by way of
the great lakes there is more pressure than ever
to secure cars and vessels, but so far as can he
learned no great progress has been made in that
direction, the tonnage loaded at Cleveland, Lorain,
Toledo, Sandusky and other points for upper
lake docks not having been materially increased.
The grain movement from the West and Southwest
is just commencing but is not yet seriously
interfering with the supply of cars at the mines in
the Mississippi valley. Kansas City shippers
report that they are short of cars at the mines
about one day in the week, but this is causing no
great shortage of coal. In Illinois and Indiana,
generally speaking, the supply of cars has been
satisfactory and the production heavy. As a
matter of fact, it has been so heavy that prices
have begun to sag again, especially on steam
coals and the finer sizes, such as screenings and
slack. Every mine in the West almost has been
producing during the last two weeks and with
this immense production and weather which has
been mild for this season of the year, the tendency
has been dull on practically all descriptions of
coal except that required for domestic purposes,
which only holds fairly firm and is not as active
at it ought to be at this season of the year.
The shortage of water continues to keep down
production in the Connellsville coke region and
unless weather conditions change soon several
plants will be compelled to shut down. Demand
for coal is still strong and with the prevailing
conditions is pushing prices upward at a rapid
pace. It is reported that offers for immediate
delivery of from $1.90 to $2.10 and even higher
have been made during the last few days. From
this it begins to look as if $2.25 coke, or even
higher, is not too much to expect and especially
is this likely to come to pass if the scarcity of
water continues for any great length of time.
There has been a fairly good car supply during
the last month, Imt the railroads are beginning
to have trouble to get the empties returned to the
region. Operations are frequently delayed by the
irregular return of empty cars. The addition of
a very great number of overs to the active list
may result in a shortage of cars. Coke con-