Transportados Library HE 2321 C6 A87 C 417,497 ASSOCIATION OF AMERICAN RAILROADS REPORT ON ANTHRACITE AND BITUMINOUS COAL TRAFFIC SUBCOMMITTEE of the RAILROAD COMMITTEE for the STUDY OF TRANSPORTATION .. · î University of Michigan Libraries S 1817 ARTES SCIENTIA SCIENTIA VERITAŚ I ¬ ASSOCIATION OF AMERICAN RAILROADS Railroad Committee for the Study of Transportation R. V. Fletcher, Chairman REPORT ON ANTHRACITE AND BITUMINOUS COAL $35 June 1947. A Transportation ···Library ↓ -- + .. Transportation Gift 330-55 This report was prepared by the Coal, Coke, Iron Ore and Natural Gas Commodity Committee of the Traffic Subcommittee. The members of this com- mittee were as follows: R. C. • 0. E. J. K. R. B. I. A. J. E. N. R. Roy S. Kern, Chairman, Coal, Coke and Iron Ore Committee, Central Freight Association Territory; Chairman of Coal, Coke, Iron Ore and Natural Gas Commodity Committee. Gill, Assistant Freight Traffic Manager, New York, New Haven & Hartford Railroad Company. Schultz, Chairman, Coal & Coke Committee, Trunk Line Association. Dent Dent, Coal Traffic Manager, Louisville and Nashville Railroad. Smith, Coal Traffic Manager, Illinois Central Railroad. Sackbauer, Coal Traffic Manager, Missouri Pacific Railroad. Davis, Assistant Freight Traffic Manager, Union Pacific Railroad. Lehmann, General Coal Freight Agent, Norfolk and Western Railway. E. C. Nickerson, Director. The Traffic Subcommittee wishes to express appreciation for the loyal, constructive and able work performed by the Coal, Coke, Iron Ore and Natural Gas Commodity Committee. Traffic Subcommittee F. J, Wall, Vice President, New York, New Haven & Hartford Railroad, Chairman, Traffic Subcommittee. A. F. Cleveland, Vice President, Association of American Railroads. L. R. Capron, Vice President, Chicago, Burlington & Quincy Railroad. J. Russel Coulter, President, Toledo, Peoria & Western Railroad. Transportation Library W. S. Franklin, Vice President, Pennsylvania Railroad. W. W. Hale, Vice President, Southern Pacific Lines. S W. McN. Knapp, Vice President, Central of Georgia Railway. J. E. Tilford, Vice President, Louisville & Nashville Railroad. H. W. Von Willer, Vice President, Erie Railroad. E [ : CONTENTS Page 1 3 3456700 8 13 13 13 15 18 19 19 19 20 20 20 20 21 22 22 22 LO 25 26 29 33 35 36 36 38 SECTION I GENERAL COAL (ANTHRACITE AND BITUMINOUS) Importance of Traffic to Railroads. Specialized Treatment by Railroads of Coal Traffic and Rates. U.S. Coal Reserves. Bootleg Problem. Competitive Fuels Fuel Oil Coke Gas Future of Coal Production and Consumption. Movement of Coal via Rail, Water and Truck. Competitive Fuels. Bituminous Coal Conclusions Conclusions Origin Territory and Reserves. Production. Distribution. Rate Structure. G SECTION II Imports. Research. Non-Fuel Uses of Anthracite. Railroad Tonnage and Revenue. Rate Structure. Rates. General. ANTHRACITE BITUMINOUS COAL - TRUNK LINE TERRITORY AND CANADA VIA ST. LAWRENCE RIVER GATEWAYS AND ACROSS LAKE ONTARIO CAR FERRY; TIDEWATER COAL VIA BALTIMORE, PHILADELPHIA, NEW YORK AND HAMPTON ROADS AND LAKE COAL VIA LAKE ONTARIO AND ST. LAWRENCE RIVER PORTS. SECTION III SECTION IV BITUMINOUS COAL Buy ་ NEW ENGLAND Competitive Fuels and Sources of Energy. Competition with Petroleum. . ļ Page 39 42 45 52 52 54 57 57 58 61 65 72 72 73 73 74 BITUMINOUS COAL, CFA TERRITORY AND CANADA, VIA DETROIT AND NIAGARA FRONTIER GATEWAYS, AND ACROSS LAKE ERIE CAR FERRY. Rate Structure. SECTION V SECTION VI· BITUMINOUS COAL TO THE SOUTHEAST (VIRGINIA, NORTH CAROLINA, SOUTH CAROLINA, GEORGIA AND FLORIDA. SECTION VII BITUMINOUS COAL - KENTUCKY, TENNESSEE, ALABAMA, MISSISSIPPI AND LOUISIANA. Coal Reserves and Production in Tennessee. Distribution of Bituminous Coal in Kentucky, Tennessee, S Mississippi and Louisiana. Competition of Alabama Coals. Tidewater Movements through the Gulf Ports. SECTION VIII COAL SOUTHWESTERN TERRITORY SECTION IX BITUMINOUS COAL ILLINOIS, INDIANA AND WESTERN KENTUCKY, - SECTION X Ka dire EASTERN LAKE CARGO AND ALL-RAIL BITUMINOUS COAL TO NORTHWEST. SECTION XI COAL IN THE FAR WESTERN REGION. Oil. Natural Gas. Conclusion. . Rates on Coal from Far Western Producing Points. ii I & Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 * LIST OF TABLES Relation of Coal Traffic (net tons) and Revenues to Total Carload Traffic (net tons) and Revenues U.S. Class I Railroads, 1928-1945 inc. Tons of Coal and All Traffic Carried and Total Revenues 1945. U. S, Reserves of Mineable Coal as of January, 1942 Total Production of Bituminous Coal and Lignite in the U. S. for years 1935-1944, inc., and the Division of it by Methods of Shipment from Mines, i.e., by Rail, Water and Truck Pennsylvania Anthracite Production and Ship- ments Net Tons, 1940-1945, inc. Distribution of Anthracite Tonnage (net tons) in Primary Anthracite Markets, for Calendar Years 1938-1945, inc. Distribution of Pennsylvania Anthracite, April 1, 1945 - March 31, 1946 by States, Provinces, and Countries of Destination. Anthracite Tonnages (net tons) Transported to Market by Rail and by Truck for Years 1938-1946, inc. Comparative Consumption of Anthracite, Coke, and Oil Used for Space-Heating Purposes in Primary Anthracite Market Areas of New Eng- land, Middle Atlantic States, Delaware, Maryland and District of Columbia for Years 1,938-1944, inc. Anthracite Tons Carried and Anthracite Revenue, Year 1945, for Anthracite Originating Railroads, Compared with All Carload Traffic Tons Carried and Revenue on All Carload Traffic. Coal (net tons) Dumped Over Facilities at Tide- water Ports at Baltimore, Philadelphia, New York and Hampton Roads, 1941-1946, inc. Tonnage for Year 1946, Classified by the Desti- nation Areas to which Coal Moved Beyond Tidewater Ports, the Tonnage Moving to Foreign Destinations and that Consumed as Bunker Coal. All-Rail Movement of Coal to New England, 1941-1946, inc. iii * G Page 3 4 6 7 8 16 17 18 19 23 26 27 27 • · Table No. Page " 14 15 16 17 18 19 20 21 22 23 24 25 26 Bituminous Coal Tonnages (Exclusive of Railroad Fuel) Moving All-Rail to Destinations in the States of Pennsylvania, New Jersey, New York, Delaware, District of Columbia, Maryland and Virginia, Classified as to Use for Coal Year Ended March 31, 1946. All-Rail and Tidewater Receipt s of Bituminous Coal in New England, 1928-1941, inc. Fuel--Produced Electric Output and Bituminous Coal Consumed for Production of Electric Energy in New England, 1920-1940, inc. Movement of Bituminous Coal from Appalachian Area to CFA Territory and Canada via Detroit, Niagara Frontiers and Lake Erie Car Ferry (Excludes Lake Cargo Coal), 1941-1946, inc. Total Lake Cargo Bituminous Coal Dumpings at Lake Erie Ports, 1941-1946, inc. Distribution of Lake Cargo Bituminous Coal Dumpings at Lake Erie, 1944-1945-1946. Distribution of Bituminous Coal (Does not Include Railroad Fuel Coal) Produced During the Year 1945 as Reported in Mineral Market Report MMS No. 1444, August 1946, U.S. Dept. of the Interior, Bureau of Mines. Production of Bituminous Coal in the Principal Producing States and Total of United States, 1910-1946; Also Percentage Each of these States is of Total. Distribution of Bituminous Coal, in Net Tons, in the States of Kentucky, Tennessee, Mississippi and Louisiana by Principal Con- sumers and Origin Districts in 1945. Movement of Tidewater Coal Through Gulf Ports (in net tons) for Years 1940-1945, inc. Bituminous Production of/Coal in Net Tons- Illinois, Indiana and West Kentucky, Years 1938-1946, inc. Tons of Lake Cargo Bituminous Coal Received at West Bank Lake Michigan Ports During Calendar Years 1936-1945, inc. Total Receipts of Lake Cargo Coal at Duluth, Superior and Ashland, 1936-1945, inc. iv 28 34 37 39 40 40 47 53 55 57 61 65 66 · € Table No. 27 28 29 30 Amount of Bituminous Coal (Exclusive of Rail- road Fuel Coal) Consumed in Dock Territory States During the Year 1945. im Natural Gas Consumed in Minnesota, South Dakota and Iowa and Equivalent Tons of Coal, 1933-1944, inc. Katy Fuel Oil Sales in Dock Territory States Shown and Equivalent Tons of Coal, 1933-1944, inc. * Receipts of Bituminous Coal by River at St. Paul and Minneapolis, Minn., 1935-1945, inc. V Page 66 67 69 68 : EXHIBIT A. B. C. LIST OF EXHIBITS "Coal in the Economic Life of the United States", by George A. Lamb. • Excerpts from "Synthetic Gasoline", Published in the March 1947 issue of "The Lamp" the Publi- cation of the Standard Oil Company of New Jersey. CARD Distribution of Bituminous Coal and Lignite Produced During Year 1945, Excluding Railroad Fuel. vi *** L 1 • : *** Y CONCLUSIONS (1) Anthracite and bituminous coal provide the railroads of the United States with more tonnage and revenue than any other commodity. In 1945 the total revenue coal traffic carried by Class I railroads constituted 30.6% of all carload revenue traffic and the revenue derived from the transportation of coal was but slightly less than a billion dollars and represented about 15% of the gross carload freight revenues. In 1944 the average carload freight charge on bituminous coal was #2.21 per net ton and due to subsequent rate changes is currently about $2.46 per net ton. 2) The United States railroads use more bituminous coal than any other class of consumers. In 1944 railroad consumption exceeded 132,000,000 tons, constituting 22.3% of the total production. (3) Other principal classes of users of bituminous coal are electric power utilities, coke manufacturers, steel mills, gas manu- facturers, cement mills and domestic consumers. (4) The chief use of anthracite is for domestic purposes. (5) The principal competitors of coal are oil, natural gas, and hydro-electric power, the nature and severity of the competition being substantially different in the several sections of the country. C B (6) The supremacy of coal as a source of heat and power is not now seriously threatened, but the outlook for the immediate future indicates some decline in the use of coal in relation to competitive sources of energy. With a continued increase in the nation's demand for energy, this probably will not appreciably reduce total bituminous coal production. (7) The large coal reserves of the United States insure adequate supplies for a long period of time and the limited reserves of natural gas and oil, together with needed conservation measures that should be enacted by both State and Federal governments, justify the prediction that within a decade or two the nation will require greatly increased quantities of coal, much of which, however, may be converted into high BTU gas and gasoline at or near the mines. (8) Railroads transport from the mines more than 80% of the total production of coal, and there is no present indication that there will be any drastic change in the demand for railroad service. (9) Railroad rates on coal consist of many complex competitive adjustments which have in most instances been found lawful by regu- latory bodies and have satisfactorily met the requirements of commerce. Q (10) Because (a) of motor truck and water competition in certain Populous and highly industrialized areas, (b) of the severe and widespread competition between coal and natural gas, oil and hydro- electric power, and (c) of the economic necessity for low-cost fuel :. 2 and energy, coal rates have been held to relatively low levels in re- lation to other freight rates. It clearly is in the interests of the railroads, the coal industry and the country that they continue to be maintained on the lowest possible levels consistent with the revenue needs of the railroads as a whole. (11) Railroad coal rates require constant supervision so that timely revisions may be made in particular rate situations to reflect or moet the requirements of industry or compotition. There is no rate-making rule or policy that might be suggested as a guide for the future, but it is important that drastic piecemeal alterations of rate levels and relationships be avoided. (12) Aside from the inadequacy of cer supplies current in many sections of the country and on many important coal-carrying railroads, there have been no serious complaints about railroad coal-carrying equipment. (13) The present and future requirements for coal-carrying cars of various types differ widely on the several coel-originating rail- roads,and it is not practicable to submit general suggestions that would fit all situations. Each railroad must therefore continue to provide itself with the kind of cars to which its traffic may be best adapted, (14) Present trends in the natural-gas industry, particularly that toward expansion of production and distribution, constitute the greatest immediate threat to railroad coal traffic. To safeguard their interests, as well as to promote sound public policy, the rail- roads should continue with increased vigor their opposition to the improvident construction and enlargement of gas transmission facili- ties. The effort initiated in the Federal Power Commission's Natural Gas Investigation,Docket G-580, to secure legislation that will con- serve natural gas resources in the public interest must be supported, and the most effective initial step in this direction would be for Congress to amend the Natural Gas Act so as to invest the FPC with control over the end uses of natural ges under a national conserva- tion policy that would discourage unnecessary and wasteful dissipa- tion of the very limited natural gas reserves. “ ww W (15) The railroads should undertake more forceful action to eliminate Federal subsidies resulting in unfair competition. The most important and hurtful subsidies from the standpoint of rail coal traffic are the construction and maintenance of inland water- ways by the Federal Government. Every proper effort should be put forth by the carriers individually and collectively to defeat schemes to construct new waterways for the purpose of depriving railroads of traffic and an active campaign should be waged to establish adequate tolls or user charges on existing waterways C 慈 ​1 3 1928 1932 1937 1942 1943 1944 1945 1. Importance of Traffic to Railroads Coal traffic is and long has been No. 1 in the list of com- modities transported by railroads and it also produces more railroad revenue than any other. In fact, no other individual commodity ap- proaches its importance as a source of railroad earnings, and there is nothing in the foreseeable future that could possibly offset the losses, which would follow a marked decline in the coal business. But in addition to its inherent importance in the make-up of rail- road traffic is the further fact that coal traffic in the past has been more stable and less susceptible to the rises and falls in the cycles of business activities than has other traffic, with the result that during periods of depression, such as in the early thirties, coal occupied a much more important place in railroad traffic than in the pre-depression period or in the war-swollen traffic of the forties. Thus,while coal always retains its position as the greatest single source of railroad traffic and revenues, it is in the poor years that it assumes its greatest importance and constitutes the strongest crutch upon which the financially crippled railroads must lean. Table 1 contains in brief form the statistical basis for these general observations. · COAL (ANTHRACITE AND BITUMINOUS) SECTION I GENERAL TABLE 1 RELATION OF COAL TRAFFIC (NET TONS) AND REVENUES TO TOTAL CARLOAD TRAFFIC (NET TONS) AND REVENUES - US CLASS I RAILROADS 811,963 492,801 Total U S Railroads Carload Freight Tons Total Tons Carried Revenues Carried Revenues (Thousands) (Thousands) (Thousands) (Thousands 647,894 859,369 884,866 925,254 851,231 Coal 950,150 2,298,362 $4,317,698 601,807 1,139,832 733,149 1,793,165 999,045 2,760,835 1,026,059 1,061,424 2,969,407 2,965,374 979,774 2,782,7777 2,280,897 3,251,215 5,857,061 6,748,421 6,986,939 6,563,300 K % Coal of Total Tons Carried Revenues 35.3 43.2 36.1 31.1 29.8 31.2 30.6 (Tonnages include duplications) (Authority ICC Freight Commodity Statistics) 22.0 26.4 22.6 17.1 15.2 15.3 14.9 It has been shown coal traffic is the largest single item in the make-up of the tonnages and revenues of the railroads of the country as a whole, but the extent to which the carriers individually and sectionally participate in the transportation of it differs widely, que mainly to the locations of the centers of production, population, industrial.development and the availability of other fuels or sources 女 ​ཥཥ of energy. It is thus to be noted that the railroads of the East, including the Pocahontas Region, have come to depend much more upon coal traffic than have the Western and Southern roads. Table 2 il- lustrates the sectional variations in the relationship of coal traf- fic and revenues to the total. CARE AND Eastern District Pocahontas Region Southern Region Western District TONS OF COAL AND ALL TRAFFIC CARRIED AND TOTAL REVENUES TABLE 2 Coal All CL Traffic Tons Revenue Tons (Thous) (Thous) Thous) 517,577 $529,893 1,335,028 $2,391,213 133,750 203,948 104,079 121,377 95,825 124,557 190,176 386,389 871,185 1945 All CL. % Coal of Traffic All CL Traffic kevenue Tons Revenue (Thous C 38.8 22.2 70.3 60.1 339,228 872,189 26.9 13.9 2,960,670 10.0 4.2 2. Specialistic Treatment by Railroads of Coal Traffic and Rates With coal of such prime importance to the financial well-being of so many of our railroads, it is but good business judgment that the carriers individually and collectively through their associations exercise more than ordinary care in the fixation of coal rates and to foster,develop and otherwise promote the traffic. So it is that practically every large coal handling railroad maintains a well staffed coal traffic department, which devotes its efforts to the problems peculiar to the traffice and to the producers and consumers of coal. These departments invariably include rate men with special- ized knowledge of coal rate adjustments, solicitors,who are intimately acquainted with the problems of coal transportation and distribution, and frequently graduate engineers, who have specialized, scientific knowledge of coal reserves and coal mining and preparation methods as well as technical training in the adaptation or suitability of specific coals or types of coals for particular uses or under given conditions. Many of the railroads also lend financial and practical assistance to programs instituted by the coal industry or others, looking to the scientific solution of the many problems that are met with in the constantly increasing effort to improve the efficiency of producing, transporting and consuming coal and the discovery of new uses for it. Many railroads also maintain laboratories for the testing of coal which constently work with and for the coal producers and consumers. To further promote the desired prompt and expert handling of rate and traffic problems in the interest of the railroads and the public, the carriers maintain coal and coke committees operating within Trunk Line, Central Freight, Southern and Illinois-Indiana Territories. Although those committees are adjuncts of the terri- torial rate committees, they are separately staffed and maintained, and their meetings are attended by the Coal Traffic Specialists of Ap GRAN 5.- the member railroads. This very briefly outlines the extraordinary attention and serv- ice which the rail carriers accord the rate, traffic and even the technical problems of the coal industry and its customers. Likewise, it points to the fact that the railroads and the coal interests are in constant touch with each other; that there is at all times the free interchange of ideas and information between these interests, which is essential to the solution of industrial and transportation questions as they arise. Doubtless, it is because of these conditions that but a very few of the returns to patron questionnaires even mentioned coal and that those which aid offered no important sugges- tions or criticisms of the existing rates, rules, regulations, practices and services of the carriers. It is here pertinent to point out that in this report no effort will be made to suggest changes in present rate and transportation practices affecting coal traffic. Efforts in this direction would obviously be futile, misleading and otherwise valueless because they would necessarily be predicated upon the present situation which is extremely unsettled and abnormal. Any attempt to anticipate changes in rate and traffic policies on basis of what we now know or think we know of future trends would require a degree of prophetic vision that we do not possess. We shall, however, undertake to show that the future of coal as a necessary and useful source of heat and energy; in the smelting of iron and other mineral ores; and as a raw material in synthetic chemistry is far from discouraging. The extent to which the railroads will continue to transport coal may, of course, depend upon many factors not now discernible, but we can confidently assume that whenever or wherever it may be practicable to retain and in- crease the tonnage through rate changes, improvement in services or by other means within the control of the railroads, the coal traffic specialists and the rate committees will take timely and appropriate action. Certainly no outline of future policy in these matters could be prepared at this time, which would, save through accident, be "worth the paper it is written on", as a guide to future activities in be- half of railroad coal traffic. It, therefore, will be the purpose of this report to point out from known facts what may be in store for the railroads in the immediate future by way of coal traffic. 3. US Coal Reserves The first consideration in our examination into the future of coal is that of reserves. Coal is an irreplaceable resource. Whether, therefore, it shall continue in the future to be produced in this country in quantities approximating that in the current or in previous periods depends basically upon the existence of sufficient mineable coal of satisfactory quality to sustain the production through the years ahead. Much has been written on this subject and many estimates have been made. While views may differ and estimates vary in extreme degree, all agree that the coal resources of this country are tremendous and that there is not the remotest possibility of a shortage for hundreds, even thousands of years. Undoubtedly, the most reliable estimates of reserves are those of the United States 1. 6.. Bureau of Mines, which, in Information Circular IC 7261 of November, 1943, published the following estimates of the US Reserves of Mine- able Coal as of January, 1942: - Rank of Coal Anthracite Low Volatile Bituminous High Volatile Bituminous Sub-Bituminous Lignite TABLE 3 TOTAL - ALL RANKS Reserve January 1, 1942 (Net Tons) 15,000,000,000 53,000,000,000 1,353,000,000,000 818,000,000,000 939,000,000,000 3,178,000,000,000 Based on the extremely large 1944 production of 63,700,000 net tons of Anthracite and 620,000,000 net tons of Bituminous coal, these figures indicate that it will require over 200 years to exhaust the. anthracite and over 3500 years the bituminous and sub-bituminous coal in the ground. The reserve of lignite is now scarcely being touched, the production in 1944 having been only 2,500,000 net tons. These figures of probable coal reserves are presented solely to show. that our country possesses tremendous quantities of this most valuable of all natural resources. No other country or continent in the world is so fortunate. There are, however, many reasons why the entire reserve will probably never be utilized. Among such are qualities of the coals, geographic locations, depth and thickness of seams and possible development of other and better sources of energy. Nevertheless, it can be stated with positiveness that the use of coal will not decline or cease because of a deficiency of the supply. 4. Future of Coal Production and Consumption A study of the present and the immediate future economic and competitive conditions affecting coal indicate quite clearly that coal will continue to be produced in very great volume and that the railroads will serve as its principal transportation vehicle. Pro- duction trends are, however, quite likely to decline somewhat from the wartime peak, but in the case of bituminous coel not so much as to approach the depression level of about 350,000,000 tons per year. There are, of course, many influences at work which might drastically alter the situation as it now appears. They might either decrease or greatly increase the demand for coal. While now too remote and specu- lative to warrant detailed consideration in this report they may prove to, and many think they will, be of transcending economic im- portance in the not too distant future. As illustrations of this kind of thinking, there is attached, marked Exhibit A, a copy of an address delivered by Dr George A Lamb to a joint meeting of the . - 7 · Engineers' Society of Western Pennsylvania and The American Institute of Mining, and Metallurgical Engineers in Pittsburgh, Pa on April 18, 1947. Dr Lamb is now connected with the Pittsburgh Consolidation Coal Co and formerly, for many years, served in various technical capacities on the staff of the United States Bureau of Mines. He is recognized in the coal industry as an authority on the subject he discussed- "Coal in the Economic Life of the United States". 5. Movement of Coal via Rail, Water and Truck Table 4 shows the total production of Bituminous Coal and Lignite in the United States for each of the years of the decade ended 1944 and the division of it by methods of shipment from mines, ie, by rail,water and truck. The totals of these classifications do not equal the production, because part of the production was con- verted into coke at the mines, sold to employees, used for colliery fuel,etc. Year 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 TABLE 4 BITUMINOUS COAL AND LIGNITE (NET TONS) Production Tons (Thousands 372,373 439,088 445,531 348,545 394,855 460,772 514,149 582,693 590,177 619,576 Rail Shipments % of Prod Tons (Thousands) 319,741 85.9 370,763 84.3 (1) 295,336 84.7 331,190 83.9 380,388 82.6 425,184 82.7 482,814 82.9 495,864 84.0 527,135 85.5 Water Shipments Truck Shipments Tons (Thousands of Prod 18,327 4.9 24,868 5.7 (1) 16,903 4.8 22,229 5.6 29,473' 6.4 30,240 5.9 34,018 5.8 30,188 5.1 31,518 5.1 Tons Thousands of Prod 0% 21,960 5.9 27,923. 6.4 (2)37,763(2)8.4 25,592 6.3 29,534 7.5 35,541 7.7 40,056 7.8 45,154 7.7 42,433 7.2 40,123 6.5 (1) Rail and Water Shipments 399,237,575 tons or 89.6% not separated in 1937. (2) Included local sales, used by mine employees, ctc,in 1937. Authority - US Bureau of Mines It is significant to point to the great preponderance of the movement of coal via rail and that the rail proportion of the total has been maintained through these years on a substantially stable plane. It should be pointed out that the bulk of the water shipments are captive coal produced and consumed by the same corporate interests and most often transported by private or contract barge lines owned or controlled by the shipper-consignee. This type of traffic is generally or in high degree non-competitive. Truck shipments are generally for short hauls where the trucks perform services from 00 mines to consumers' bins, which the railroads cannot physically supply. The complete and direct service of truckers from mines to domestic or small industrial consumers avoids dealer costs and profits, which, in communities within or adjacent to coal producing areas, greatly exceed transportation charges of either the railroads or the truckers. Wherever trucking services and costs are competitive, railroads have adjusted coal rates so as to attract as much of the short haul traf~- fic as transportation charges and other conditions permit. Table 5 contains statistics of the production of Anthracite and the shipments by rail and by truck during each of the years, 1940 through 1945. There is no movement of Anthracite from the mines by water. Year 1940 1941 1942 1943 1944 1945 Production Thousands PENNSYLVANIA ANTHRACITE FRODUCTION AND SHIPMENTS NET TONS 51,485 56,368 60,328 60,644 63,701 54,934 TABLE 5 Via Rail Tons Thousands 43,024 46,799 50,550 49,877 53,215 45,087 % of Prod 83.57 83.02 83.79 82.25 83.54 82.07 Via Truck Tons Thousands) 6,192 7,529 7,956 7,878 7,713 7,596 % of Prod 12.03 13.36 13.19 12.99 12.11 13.83 The figures in Table 5 do not include illicitly produced or "bootleg" coal. This incongruous and unique segment of the Anthracite Industry will be discussed further in a.later section of this report. The only present competitors of the railroads for the transporta- tion of Anthracite from the collieries are notor, trucks. Table 5 shows the extent the trucks have in recent years participated in the movement of legitimate coal. It indicates that the division of the traffic as between railroads and trucks has become reasonably stable,which was brought about only after drastic reductions in rail rates, chiefly on domestic sizes of Anthracite, throughout much of Trunk Line Territory, about which more will be said in a later section of this report. 6. Competitive Fuels Coal when used as a fuel or as a source of energy meets active, oftentimes intense, competition with the so-called "laborless fuels"- oil and natural gas. These competitive fuels have important natural advantages including cleanliness and convenience that are not equalled by coal. In this competitive struggle, the coal industry must,if it is to continue to prosper, rely upon two factors - J # 貓 ​• 9. ! dependability of supply and economy. In years past, these factors augmented by improvements in preparation and utilization have greatly. aided the coal industry, but during and since World War II increased demand for energy, labor strife and higher production costs have occasioned serious shortages, poor preparation and have reduced or eliminated the economy of burning coal. These conditions, however, are probably but the temporary and inescapable consequences of the un- balanced economy which alway accompanies and follows a great war. When the forces of competition again come into play, they may be ex- pected to undergo such readjustments as may be necessary to re- establish a rational or practical relationship between the values of coal and competitive fuels. Furthermore, with the return of more normal times, coal will again become the plentiful and dependable fuel it once was, and natural gas and oil will find it increasingly diffi- cult to maintain a proper balance between supply and demand at con- petitive prices. Exhibit A,attached, contains much data in support of this observation from the viewpoint of a coal man, and Exhibit B, attached,contains pertinent quotations from the March, 1947 issue of "Lamp", which is the magazine of the Standard Oil Company of New Jersey. The fact that substantial sums of money are now being spent by the government and by private corporations for research in the production of gasoline and high BTU gas from coal is concrete proof of the inadequacy of gas and oil reserves to continue to satisfy public demand. < G Perhaps at this time the greatest threat to the continued supremacy of coal as a source of power is the diesel engine. Rail- roads and vessels (ocean, lake and river) have substituted diesel or diesel electric for steam power and the trend continues unabated. These conversions are influenced by many considerations- operating costs,efficiency, smokelessness, availability, etc. The coal industry and the large coal-carrying railroads, however, are thoroughly alive to the situation and are exercising every effort to combat it by the development of new and better types of coal burning equipment. Even now these efforts appear to be on the threshold of at least partial success. The prospects are indeed very good that the trend will be reversed, and the coal burning locomotive may soon re- establish itself as the best and cheapest railroad and possibly vessel power. W D The rise in the production and use of natural gas in this century has been phenomenal and little short of scandalous. In 1906 the total marketed production of gas was but 388 billion cubic feet and came almost entirely from the Appalachian Region (Kentucky, New York, Ohio, Pennsylvania and West Virginia). From that year, the marketed pro- duction rose steadily and in 1923 it passed one trillion cubic feet. From then the increase, accelerated by newly discovered fields, con- tinued, passing 2 trillion cubic feet in 1936, 3 trillion in 1942 and attaining an all time high of 3.7 trillion cubic feet in 1944, of which 57% was produced in the Gulf Region (arkansas, Louisiana, Mississippi and Texas), 14% in the Central Region (Colorado,Illinois, Indiana, Kansas, Michigan, Missouri and Oklahoma), 13% in California (Pacific Region), 111% in the Appalachian Region and the balance in Montana, New Mexico and Wyoming (Mountain Region). With the dwindling } Ꮵ ! C · 10 - ORGA production and exhaustion of reserves in the Appalachian Region and the inability to increase the productivity of the Central, Mountain and Pacific Regions, the nation as a whole, but more especially that part lying east of the Mississippi River, has relied, and must continue to rely, upon the Gulf Region, chiefly Texas, for its greatly mounting demands for natural gas. There thus have been tremendous activities by natural gas producing and transmitting companies to lay new pipe lines from the Gulf Region throughout the South; to the Northwest; to Central Territory; the Eastern Seaboard and even to Canada. Many of the enterprises have been consummated or have been authorized in whole or in part by the Federal Power Commission. Not long ago, the Big Inch and Little Big Inch lines, which were constructed during the war for the emergency handling of petroleum and its products, were converted to the transmission of natural gas and are now being so utilized under temporary authority granted by the Federal Power Commission to the Texas Eastern Transmission Corp,which purchased the lines from the government. That corporation now has pending with the Federal Power Commission an application in Docket G-880 for the right to continue gas transmission on a permanent basis. The figures just recited, be it noted, cover only the production of natural gas which is marketed. Total production, that is to say, the total permanently severed from the ground, is something quite different,because such would include gas which is wasted because it cannot profitably be marketed or that lost in the process of produc- tion and transmission! The extent of these losses is unknown be- cause most of that which is vented to air or flared is unknown. That their losses in total are tremendous is universally recognized and the US Bureau of Mines has since 1935 published figures of the known wested gas, which they admit are but a part of the total and represent from 15% to nearly 22% of the total reported gross produc- tion of natural gas. CA Cont " With the tremendous increase in the production of natural gas it has more than trebled in the past twenty years the seemingly unlimited demand for it at a price and the rapidly expanding system of pipe line transmission for very long distances, the important and as yet not fully answered question is- how long can the nation's re- serves be relied upon to maintain a productiveness capable of meeting constantly expanding distribution and increasing consumption? In the Natural Gas Investigation of the Federal Power Commission (Docket G-580) evidence was offered indicating that the estimated, proved recoverable natural gas reserves as of January 1, 1946 totalled about 144 trillion cubic feet and "that for broad considerations of national planning", the gas reserves should be considered "to be of the order of magnitude of 200 trillion cubic feet", Assuming the latter figure to be correct and that gas production continues for the next twenty years at the same rate of acceleration as in the twenty year period ended with 1944, this country shall in 1964 produce about 12 trillion cubic feet or 6% of the largest estimate of reserve in FPC Docket G-580. Even at the 1944 rate of production, the nation's reserve would be exhausted, mathematically, in 50 years. Based upon considerations such as these, it is generally conceded that natural ges production must reach its pak in not more than twenty years and # • } - 11 then go on the decline, unless stringent conservation measures are enacted by both state and federal governments. These should include not only proper controls of production that will eliminate waste and promote maximum recovery, but also restrictions on the end uses of gas that would prohibit space heating and many industrial uses for which coal or manufactured gas are suitable. From the foregoing, it is clear that natural gas has displaced and may in the future displace a greater volume of coal. The nation's constantly increasing population and expanding economy has to some extent offset these displacements and coal has, therefore, mainta ined its place as the nation's chief source of heat and power. In 1944, coal contributed 17,966 trillion BTU's, or 49.4%, to the nation's supply of energy and natural gas but 4,064 trillion BTU's, or 11.1%. If, therefore, gas were to replace all coal as a source of energy,it would require an annual production of gas of more than 4 times the present and result in the depletion of the national reserve so rapidly that the largest estimate of all known or predicted reserves (200 trillion cubic feet) in less than 16 years. This, of course, would be physically impossible, but the calculation demonstrates that natural gas cannot now or in the future be relied upon as the chief source of the nation's growing need for energy. In the light of these considerations, it would appear logical to anticipate that in the immediate future natural gas might make further inroads on coal consumption in some sections of the country, but there are no evidences that coal will cease to be "king". Aside from the particular comment on Diesel Engines in their effect upon coal consumption, it does not seem necessary to deal at length with the competition of oil with coal. It is, of course,well known that in the past, fuel oil has displaced large tonnages of coal. These displacements were particularly severe in their effect upon Anthracite in the East and New England and upon Bituminous coal in the Midwest and Northwest. Oil doubtless will continue for many years to come as the chief competitor of domestic coal and as a threat to steam coal markets. Everything, however, points to a gradual lessening of the force of this competition, because oil re- serves in this country have been so depleted that they cannot be relied upon to furnish more or even as much of the needed supplies of heat and energy in the future as in the past. Of course, the effect of the anticipated decline in oil production is not as apt to be felt along the seaboards to the same extent as in the interior, because of oil importation which is sure to increase. Another competitor of corl upon which little need here be said is hydro-electric power, which of all sources of energy has shown the greatest increase in the past decade. These gains, however, are for the most part the results of actions and subsidies of the Federal Government,which frequently are justified on grounds other than power production- such es, flood control, irrigation and navigation. Whether in the future, water power will continue its rapid rise is too speculative to predict for it depends almost exclusively upon govern- ment policies. Obviously, if such things as the St Lawrence Seaway, 12 the Missouri Valley Authority and the Ohio Valley Authority become realities, power production will greatly increase, but if they are not constructed, hydro-electric power production is apt to remain static or reasonably so. That this report may contain the best and most complete statistical information available with respect to the distribution and consumption of bituminous coal and lignite for uses other than railroad fuel, there is attached, marked Exhibit C, copy of the Mineral Market Report MMS No.1444(August, 1946) by the U.S. Depart- ment of Interior, Mineral Industry Surveys, entitled "Distribution of Bituminous Coal and Lignite Produced during Year 1945, excluding Railroad Fuel". This comprehensive tabulation contains the tonnages of soft coal and lignite consumed in each state in the year 1945, classified by uses, namely Industrial, Retail Yards, By-Product and Water Gas, Smithing, and Uses not reported. z -13- SECTION II Origin Territory and Reserves ANTHRACITE The Anthracite Producing Territory is located in the north- eastern part of Pennsylvania embracing an area approximately 500 square miles. This territory is served by the following trunk line carriers: Central Railroad of Pennsylvania Delaware and Hudson Railrcad Delaware, Lackawanna and western Railroad Erie Railroad Lehigh and New England Railroad Lehigh Valley Railroad New York, Ontario and Western Railway Pen sylvania Railroad Reading Company In addition it is also served by two short lines, the Lackawanna and Wyoming Valley Railroad and West Pittston-Exeter Railroad. Anthracite and Semi-Anthracite deposits also exist in several states other than Fennsylvania, but production outside of Pennsylvania is insignificant and will not therefore be considered. According to a report issued by the Pennsylvania Department of Mines, it is estimated the recoverable reserves of anthracite as of. January 1,1943, on basis of production at the average rate for the five year period 1933-1942, is as follows: Total Northern Field Eastern Middle Field Western Middle Field Southern Field Production 1939 1940 f 量 ​p | | | 65 years 12 years 174 years 590 years Below is shown anthracite production figures, in net tons, for the years 1939 to 1946, inclusive: - 164 years 1938 46,099,000 51,437,000 51,435,000 1941 56,363,000 1942 60,323,000 1943 60,644,000 1944 63,701,000 1945 54,934,000 1946 -*60,685,000 *Preliminary • - 14 Anthracite production dropped from its peak of over 90,000,000 tons in 1917 to a low of 46,000,000 tons in 1933. As indicated by the above figures, in 1939 production began to increase and each year thereafter, up to and including 1946, production has been substantially in excess of 1933. Beginning in 1941-1942 and continuing throughout the war, due to fuel cil and coke shortages in Anthracite's primary marketing areas of New England and the Middle Atlantic States, many consumers convert- ed from fuel oil and coke to anthracite. The se conversions, together with the increased demands occasioned by increased industrial activ- ity and purchasing power; the use of anthracite in newly constructed permanent and temporary houses, as well as the rising export demands, have kept anthracite production at a high level. In the past year the anthracite export trade reached extra- ordinary proportions. During the calendar year 1946 Canada imported 4,514,757 net tons, an increase of 1,121,626 tons or 33.0% compared with the previous year. For the calendar year 1946, 1,927,844 net tons were exported to European countries, whereas, in prior years the exports to those countries were negligible. Ala Due to England's inability to meet its local demands for coal, the possibilities of increased imports to Canada from that source are not imminent. Therefore, exports of U.S. Anthracite to Canada should continue at a high level for several years. As to the exportations to Europe, indications are that the present demand in those markets should continue for the next two or three years. ¿ In connection with the decline in production during the year 1945, the following is quoted from the U.S. Department of Interior, Bureau of Mines - Mineral Yearbook - 1945: A "The heavy demand for Pennsylvania Anthracite during the war period continued throughout 1945, and the out put of 54,933,909 net tons was not sufficient to mect the increased requirements created by shortages of other space-heating fuels, the requests from Canada for large tonnages, and the expanded . purchasing power of domestic consumers. The sharp decline in production 14 percent less than the output of 63,701,363 tons in 1944 is directly attributable to the scarcity of manpower, difficulty in obtaining equipment and supplies, and labor disturb- ances which shut down the mines completely for 3 weeks. ***In accordance with an arrangement made by the operators and the United Mine Workers of America in January, 1943, the miners worked 6 days a week in 1945. The total days operated by the industry. 269 was the highest since 1924, with the exception of the 270 and 292 worked in 1943 and 1944, respectively." ११. During the past coal year ending March 31, 1946, the *Anthracite Institute reports an estimated **commercial production for the industry of 55,351,000 net tons of all sizes. This was an increase of 3,560,000 tons or 3.8% over the coal year 1945-46. Of the total 33,354,000 tons or 59.7% were of domestic pea and larger sizes,and * ** references, see bottom of Note: For explanation of and page 15. 15 1 22,497,000 tons buckwheat and smaller sizes. There were 270 work days qurangast coal vear as against 273 the previous wear. In connection with the above report the Anthracite Institute issued the following statement: "The weather for the 1946-1947 coal year has been the mildest in four years. Using New York as a representative city in the consuming area, it has been 8.7% warmer than normal and 0.9% warmer than the year 1945-1946. The coal year just closed was 4.3% warmer than two years ago, and 12.7% warmer than 1943-1944. Had the weather been normal during this pericd the demand for anthracite throughout the consuming territory would have ap- proximated 3,650,000 tons more than was actually consumed." Distribution Anthracite's primary markets are the New England States, Middle Atlantic States,i.e. New York, New Jersey, and Pennsylvania, also Delaware, Maryland and District of Columbia, and Canada. Distri- bution of the tonnages in those markets for the years 1938 to 1945 inclusive, is shown in Table 6. Shipments of anthracite to these marketing areas accounted for 96% of the total shipments in the ccal year 1945-1946. Anthracite is principally a domestic fuel for heating homes, apartment s, hotels,cffice buildings, etc. In the calendar year 1945 the so-called domestic sizes, comprising the sizes pea and larger, constituted 61.3% of the total production. Buckwheat No.1, which is predominantly used in stokers in homes and in larger buildings, constituted 14.1% of the 1945 production. Thus the domestic sizes and Buckwheat No.1, constituted 75.9% of the production in that year. Sizes smaller than Fuckwheat No.1 are principally consumed by electric utilities in and near the anthracite producing territory, by railroads; by various industries and in the manufacture of briquettes. Table 7 is statement showing distribution of anthracite for the coal year April 1, 1945 to March 31, 1946, by states, provinces and countries of destination, separated as to domestic sizes(includes pea and larger sizes), and steam sizes. * This organization representing the Anthracite Producing Companies is supported by companies producing approximately 30% of the commercial production. ** Commercial production excludes coal used locally at the col- lieries for power, heat,etc and is therefore, lower than the total production figures. Page 16 DESTINATIONS New England New York* New Jersey* Delaware Maryland Pennsylvania District of Columbia Canada TOTALS DISTRIBUTION OF ANTHRACITE TONNAGE (NET TONS) IN PRIMARY ANTHRACITE MARKETS, FOR CALENDAR YEARS 1938 TO 1945, INCLUSIVE 1943 1945 1938 3,553,000 4,492,000 4,539,000 5,540,000 5,844,000 5,604,000 6,004,000 4,867,000 13,452,000 16,716,000 16,249,000 16,308,000 17,988,000 18,555,000 17,489,000 14,488,000 6,421,000 9,060,000 8,814,000 10,190,000 10,395,000 9,527,000 10,254,000 8,666,000 198,000 259,000 304,000 361,000 373,000 362,000 380,000 343,000 574,000 634,000 608,000 681,000 835,000 873,000 1,016,000 868,000 9,603,000 12,077,000 12,915,000 14,103,000 15,813,000 16,540,000 17,744,000 15,776,000 Event 1939 1940 1941 1942 CONGO (SOLAR 12AY 20 TABLE NO. 6 1944 *An important but undetermined part of anthracite shown as shipped to New Jersey is reshipped to New York City. · 254,000 264,000 289,000 283,000 298,000 320,000 325,000 270,000 1,895,718 2,577,157 2,626,692 3,360,515 4,417,689 4,096,896 4,144,297 3,393,131 35,950,718 46,079,157 46,344,692 50,826,515 55,963,689 55,877,896 57,356,297 48,671,131 # : 17 TABLE NO. 7 די DISTRIBUTION OF PENNSYLVANIA ANTHRACITE, APRIL 1, 1945-MARCH 31, 1946, BY STATES, PROVINCES AND COUNTRIES OF DESTINATION (NET TONS) DESTINATIONS United States: New England States Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont Middle Atlantic States New Jersey New York Pennsylvania* Total South Atlantic States Lake States Illinois Michigan Minnesota Delaware Dist.of Columbia Maryland Virginia Ohio Wisconsin Total Canada: Total Total All Other States Ontario Quebec Other Provinces Unk 'n Destinations TOTAL DOMESTIC Other Countries TOTAL U.S. 28,641,257 1,078,331 316,578 2,265,184 4037 203,941 •39 329,732 :63 205,466 •40 4,399,232 8.48 697,755 89,114 1,298,497 FCT.OF TOTAL SHIP- NENTS KES 282,768 .54 228,860 44 1.35 17 2.50 1,824,936 638,105 88,508 23.429 Total Canada 2,574,978 Sung .160 2.08 :61 TOTAL STEAM 188,499 31,874 4,248,329 8.19 3,978,952 7667 8,227,281 15.86 9,999,966 19.27 6,525,484 12,58 16,525,450 31:85 7,553,605 14.56 7,454,318 14,37 15,007,923 28.93 21,801,900 42.02 17,958,754 34.62 39,760,654 76.64 3.52 1.23 .17 :05 4097 M PCT.OF TOTAL SHIP TOTAL MENTS ALL SIZES .36 :06 .61 318,563 121,305 €24 49,339 .10 73,332 .14 782,912 1.51 80° 50,910 .10 38,389 188,700 42,281 320,280 .62 1,618,777 .36 80° 1,266,830 348,452 2644 667 2,583,747 4.98 325,246 663 379,071 •73 278,798 54 5,182,144 9.99 .39 96,029 .19 135,100 135,950 26 26 204, 209 203,456 .39 59,036 12 90,766 .18 389,482 675 946,949 1.83 31,890 :06 209,815 .40 608,784 1.17 122,656 599,297 1,555,733 194,679 .37 67,171 .13 261,850 .50 28,641,257 55.20 19,737,901 38.05 48,379,158 93.25 PCT.OF TOTAL SHIP- MENTS 333,678 267 $249 886,455 131,395 268,980 52 540,431 1.04 13,352 03 70,614 13 893,377 1.72 329378 .06 .64 652 1.71 25 3.12 300,238 $58 338,556 :65 194,986 38 •24 1.15 3.00 2,093,916 4.04 1,178,536 101,860 94,043 3,468,355 2.27 .20 .18 6.69 32.538 .06 GRAND TOTAL 31,216,395 60.17 20,663,656 39.83 51,880,051 100.00 *Includes "Local Sales" : - 19. ! Table 8 below shows anthracite tonnages, in net tons, transport- ed to market by rail and by truck for the calendar years 1933 to 1946, inclusive: Year 1938 1939 1940 194 1 1942 1943 1944 1945 1946 Rail 39,648,028 43,809,200 43,023, 749 46,793, 319 50,549,766 49,877,659 53,215,047 45,036,715 51,076,047 Percent of Total · 92.3 90.1 87.4 86.1 86.4 86.4 87.4 85.7 87.0 Table 8 Truck 3,323,723 4,824,537 6,192,067 12.6 7,529,479 13.9 7,955,733 13.6 7,877,860 13.6 7,712,973 12.6 7,596,902 14.3 7,658,090 13.0 Fergent of Total RECUT UNƏ 7.7 9.9 It will be noted the truck shipments have remained fairly con- stant since 1941. During the war-period there was some shift in the destination territory to which anthracite was trucked. For example in 1941 Pennsylvania received 66% of the total truck shipments, Now Jersey 13% and New York 14%, whereas, in 1946 Pennsylvania received 80% of the truck shipments, New Jersev 9% and New York 9%. The shift in this tonnage is no doubt due to the increased operating expenses on long hauls and shortages of trucks and tires. Bootleg Problem Tot el 42,971;756 48,633,737 49,215,816 54,328,298 58,505,504 57,755,519 60,923,025 : 52,683,617 58,734,137 The above figures do not include the output from "bootleg" operations. By this is meant coal mined by unemployed miners from land owned by anthracite operating companies without license. It is, bluntly, stolen coal. In 1941 it amounted to approximately 6,300,000 tons and in 1945 dropped to a low of 1,026,000 tons. The production from this source increased in 1946 to 1,448,529 tons. The increase in 1946 is attributed to the return to the bootleg holes of a number of ex-service men. The illicit mining of coal came into evidence during the depression years of the 1930s and grew to a peak production of 6,300,000 tons in 1941. In the latter year, pursuant to an act of the Pennsylvania State Assembly, "The Anthracite Committee" was forme d composed of representatives of the State, Producers and United Mine Workers, for the purpose of eliminating this practice, While the work of this Committee has been effective in reducing the amount of "bootleg coal" mined, it has not been successful in entirely eliminat- ing the practice. 19 Competitive Fuels Anthracite competes in its primary markets with fuel oil, natural gas, coke and bituminous coal. Table 9 shows comparative con- sumption of anthracite, coke, and oil, used for space-heating purposes in the primary anthracite market areas of New England, Middle Atlantic States, Delaware, Maryland and the District of Columbia for years 1938 to 1944 inclusive: Year 1938 1939 1940 1941 1942 1943 1944 Table 9 (In thousands of net tons) Coke Anthracite F Tons Percent Tons Percent 27,298 50.0 34, 971 53.0 35,044 43.9 39,049 50.7 41,319 54.0 41,508 56.6 42,655 57.1 3,593 3,796 4,052 3,638 3,169 2, 988 3,446 6.6 5.3 5.7 4.9 4.1 3.9 4.6 Oil Tons 23,745 27,062 32,543 33,284 32,111 29,938 28.557 Percent 43.4 41.2 45.4 44.4 41.9 39.5 38.3 Fuel Oil For several years prior to World War II fuel oil made serious inroads in these markets due principally to its convenience in use. During the war many oil consumers in the areas along the Atlantic Seaboard converted to anthracite due to the shortage of fuel oil. Since the end of the war fuel oil has been plentiful with the result that many of those consumers have reverted to oil. Present indica- tions are that as fuel oil burner equipment becomes available con- versions to oil will continue. These conversions, however, may be somewhat retarded, at least during the next heating season, due to possible oil shortages in the primary marketing areas. Gyo It is reported by the oil people that due to inadequate refinery and storage facilities it will be difficult to me et heating oil demands in these areas during the coming winter. Because of material shortages, new storage facilities have not been added since 1941 and new refineries cannot be completed for another two to three years despite the fact that the demand for all petroleum products is expected to be 26% higher than 1941. The Oil Heat Institute at its annual convention held in Atlantic City March 26, 1947, authorized the appointment of a three- man committee to study the fuel oil supply situation with the view to discovering, if possible, what can be done to forestall shortages during the 1947-1948 heating season. Coke Coke in these markets usually sells for about the same price or slightly higher than anthracite. The amount of coke available for domestic use has been limited due to the continued heavy industrial demand. However, coke is and will continue to be, a competing fuel with anthracite. v - 20 Gas Manufactured gas is substantially higher in cost to the domes- tic consumer than anthracite. Due to its convenience it, is a popular fuel with householders who purchase their fuel without regard to cost. In many areas conversions to manufactured gas will be limited for some time due to the fact that present facilities have reached their productive capacity. Except for certain areas in the western part of New York State,natural gas has not been a serious competitor to anthracite in its primary marketing areas. Indications are, however, that in the near future competition from this fuel may increase. There is now pending before the Federal Power Commission an application of the Texas Eastern Transmission Company for a certif- icate of public convenience and necessity to use the so-called "Big Inch" and "Little Big Inch" pipe lines to transport and sell natural gas in the Atlantic Seaboard areas of Philadelphia, Trenton-Paterson and Jersey City. Applicant states it expects later to reach markets in Baltimore and New England. There is also pending before the Federal Power Commission an application of the Trans-Continental. Pipe Line Company for a certificate of public convenience and neces- sity to construct a new pipe line for transportation of natural gas from Texas for sale in the Atlantic Seaboard area. Transmission of natural gas to these areas would increase the gas available for space heating and would, no doubt, result in conversions from anthra- cite as well as other fuels. Bituminous Coal Bituminous coal in these markets competes principally with the steam sizes of anthracite. Generally speaking the prices for these two fuels are about the same Imports Prior to World War II there was some English and Russian coal imported at points along the Atlantic Seaboard, particularly in New England. Since the beginning of the war this tonnage has disappeared and there is no present indication of it returning Research Se In 1942, Congress enacted legislation providing for establish- ment and operation of a Research Laboratory in the Fennsylvania Anthracite Region. While Congress has not yet appropriated the funds to establish this Laboratory, it may be done at the 1947 session. KIN 1 The Anthracite Institute has for many years conducted research activities in their Laboratory now located at Wilkes-Barre, Pa,for improving and modernizing anthracite mining practices, developing new uses for anthracite and improving anthracite burning equipment. ! 21 ; This organization also sponsors various programs for acquaint- ing dealers with furnace equipment and educating them in the use and sale of such equipment. In addition to its own program the Institute since 1939 has, in collaboration with the State of Pennsylvania, sponsored an anthra- cite research program at Fennsylvania State College. With the research work conducted by the Institute, augmented by that done at Ponnsylvania State College, the Anthracite Industry is constantly striving to discover new and improved anthracite burning equipment and new markets where it can be used. Further help in this work, is expected when the Federal Research Laboratory is establish- ed. + Non-Fuel. Uses of Anthracite In connection with the development of new anthracite markets there is quoted below an article released by the Anthracite Insti- tute on March 5,1947, entitled "Non-Fuel Uses of Anthracite": "While anthracite's primary commercial use has been as a fuel, and particularly as a domestic heating fuel, it is used for many non-fuel purposes. Listed below are some of the applications of anthracite to services other than heating or power plant work: Acid Resisting Vats,etc Activated Carbon Battery Plates Black Concrete Roads Carbon Brushes Carbon Electrodes Flashlight Batteries Foundry Cupolas Foundry Facing Heat Transfer Tub es Manufacture of Briquettes* Manufacture of Chemicals Manufacture of Coke* Carbon Refractories Carbon Structural Forms Carburizer Cement Kilns Desludging Agent in Cil Refining Paint Pigment Diaphragm Plates Electric Furnace Resisters Filter Medium Manufacture of Graphite Manufacture of Producer Gas* Paper Mill Digester Blocks Reduction of Ores Sintering of Ores Telephone Granular Carbon *In some cases such as in Briquettes, Coke and Producer Gas Manufacturing, the ultimate product is used as a fuel but the anthracite tonnage involved is considered to be used as a manufacturing component rather than for direct .fuel use. The industry is continuing research work on the non-fuel uses of anthracite so that this valuable market may be still further extended." - 22 Railroad Tonnage and Revenue The great importance of anthracite to the railroads serving the region, some of which were originally constructed for the purpose of handling it, is indicated by Table 10 attached, showing percentage of anthracite to total tons carried and percentage of total revenue for the Anthracite Originating Railroads. Rate Structure The anthracite rate structure to Trunk Line Territory was for many years built around the rates prescribed by the Interstate Com- merce Commission in Docket No.4914, 35 ICC 220,decided July 30,1915. Some of the more important destinations to which rates were prescribed in that decision were Jersey City, Paterson, Newark, Elizabeth, Somerville, Phillipsburg and Washington, NJ, Binghamton, Waverly, Corning, Hornell, Attica, Rochester, Syracuse, Utica, Albany, Troy, Mechanicville, NY, and to New York Harbor Piors for transshipment. Since the decision in Docket No.4914, the Interstate Commerce Commission and Pennsylvania Public Utility Commission have prescribed or approved rates to many points in this territory, some of the more important decisions being as shown below: Docket No. PSRRC No.950 15006 15006 18471 Title Northwest Business Men's Assn et al v. Philadelphia & Reading RR Co, et al Rates, Charges, Regulations, and Practices governing transportation of anthracite coal Citation International Faper Co vs D&HRR and Dato of Order 101 ICC 363 7/22/25 Rates, Charges, Regu- lations, and Practices governing transporta- (Supplemental tion of anthracite coal. Order No.5, 10/10/25) 122 ICC 527 2/14/27 2 PSC Pa.959 3/13/17 146 ICC 59 7/2/28 L Rates Prescribed or Approved to #Philadelphia, Pa #Port Richmond, Philadelphia,Pa, for transshipment beyond the Capes of Delaware. #Albany, Troy, Mechanicville, Utica,Syracuse, Geneva, Hornell,NY, and other points taking the same rates and to Rochester, NY, Carthage, NY, and Clayton,NY, #Corinth,Fort Edward, Glens Falls, Ticonderoga,Wills- boro and Pierce- field,NY. J *: - 23 ANTHRACITE TONS CARRIED AND ANTRACITE REVENUE, YEAR 1945, FOR ANTHRACITE ORIGINATING RAILROADS, COMPARED WITH ALL CARLOAD TRAFFIC TONS CARRIED AND REVENUE ON ALL CARLOAD TRAFFIC (NET TONS) OPENED Gnder 1/0 10 ROAD CRROINJ D&H RR ZADO PROTON (th DL&W RR ERIE RR L&NE RR LV RR NYO&W RY. RDG.CO. TOTAL EIGHT LINES PENNA.R.R. TOTAL NINE LINES 8,593,944 81,397,954 S ANTHRACITE TONS CARRIED TONS CARLOAD ANTHRACITE REVENUE CARRIED TRAFFIC 7,335,782 8,810,129 43,530,630 44,096,988 8,637,218 9,188,507 30,550,198 41,223,249 5,611,951 8,415,757 29,437,300 52,925,445 6,704,090 8,676,475 46,721,627 115,725,384 6,731,557 ·3,522,250 10,445,098 5,676,057 8,987,691 13,412,626 34,369,515 64,458,305 2,267,651 1,402,209 6,994,250 ,993,904 26,528,070 19,260,697 90,524,339 92,160,366 72,804,010 72,688,650 292,572,957. 423,259,698 10,758,918 251,081,468 592,017,912 83,447,568 ALL CARLOAD TRAFFIC REVENUE ALL 6 TABLE NO. 10 543,654,425 1,015,277,610 PERCENT ANTHRACITE OF TOTAL TONS CARRIED 16.9 28.3 19.1 14-3 64.4 26.2 32.4 29.3 24.9 304 15.0 TOTAL REVENUE 20.0 22.3 15.9 7.5 62.1 20.8 20.0 20.9 17.0 1.8 8.2 * + 24 - Docket No. 20286 24320 24653 25416 25471 26722 26878 27148 27048 Title Central New Jersey Coal Exchange et al v CRRofNJ, et al Baltimore Coal Exchange, et al v B&ORR et al John P Agnew & Co v B&ORR et al South Jersey Retail Coal Merchants Assn,et al v Atlantic City RR Co, et al Atlantic City Coal Dealers Credit Bureau et al v Atlantic City RR Co, 7/9/35 et al Long Island Coal Merchants Assn v. Long Island Ry Co et al Buff Fuel & Oil Corp, et al v. D&HRR, et al Citation and Date of Order Lehigh Valley Coal Sales Co v LVRR, et al 167 ICC 723 8/6/30 204 ICC 207 10/8/34 Westchester Rail Coal Dealers Bureau et al v. DL&WRR et al 203 ICC 470 1/31/34 209 ICC 737 209 ICC 722 7/9/35 215 ICC 642 5/20/36 216 ICC 221 6/6/36 220 ICC 433 3/26/37 223 ICC 349 8/4/37 Rates Prescribed or Approved to #Trenton, Newark and Harrison, NJ #Prepared Sizes to Baltimore and related points #Prepared Sizes to Washington, DC and related points Sizes smaller than pea found not unreasonable #Prepared Sizes to Atlantic City, NJ #Prepared Sizes to Cam- den, NJ, group and nearby points Destinations in West- chester County, NY found not to have been or to be unreasonable Destinations on Long Island, NY found not to have been or to be unreasonable or unduly prejudicial. Destinations in Saratoga, Schenectady,Oswego, Scoharie, Montgomery, Fulton, and Herkimer Counties in New York State found not unreason- able or otherwise unlawful. #Rates prescribed to Middleburgh,Middleville, Johnstown and Gbvers- ville, NY #From mines on the LVRR to points in Eastern States found unduly prejudicial but not shown to be unreasonable + -1 25 Docket No. 27766 25284 Title Alden Coal Co, et al v CRRofNJ etal • Citation and date of Order Indicated prescribed rates $944 BAR Hďʻtara İz BRO 263 ICC 639 10/10/45 Wilmington Chamber 198 ICC 507 of Commerce,et al 1/18/34 v B&ORR, et al • Rates Prescribed or Approved to Conclusions #New York Tidewater points for transship- ment Beginning in 1932 and continuing through 1935 the rail carriers made substantial reductions in anthracite rates to Trunk Line, New England, Central Freight Association and Canadian destinations. These reductions were of varying amounts, and were nade to meet motor truck competition in certain markets and in others, particularly New England, CFA and Canada, to assist the industry in the sale of their product. Wilmington, Newport, Now Castle, Del, and nearby points For the past several years anthracite production has been main- tained at capacity, which was accomplished during a period of rising prices,occasioned by increased labor and material costs. During this period anthracite has developed new markets and has increased its tonnage in some markets. The ability of the industry to maintain its position in its primary markets and the newly-developed and expanded markets depends on its ability to continue the production of a high quality fuel; to develop and sell automatic heating equipment comparable in price and efficiency with that used in the burning of other fuels. As previously indicated, there were transported by motor truck in each of the past six years approximately 7 million tons of anthracite, exclusive of that from bootleg operations. With the return to normal production of motor trucks and the greater avail- ability of labor,it is likely the rail carriers will meet increased motor truck competition. However, due to the anticipated substantial increase in the delivered price of motor equipment, together with increased labor and material costs, it is not possible at this time to accurately predict the extent of this competition. There has been no demand by the anthracite producers or con- sumers upon the railroads for any revolutionary changes in the type of railroad equipment used in transporting anthracite. C ! 3 1 - 26 SECTION III BITUMINOUS COAL TRUNK LINE TERRITORY AND CANADA VIA ST LAWRENCE RIVER GATEWAYS AND ACROSS LAKE ONTARIO CAR FERRY TIDEWATER COAL VIA BALTIMORE, PHILADELPHIA, NEW YORK AND HAMETON ROADS AND LAKE COAL VIA LAKE ONTARIO AND ST LAWRENCE RIVER PORTS These markets are supplied with coal originating at mines in the Appalachian Fields in the States of Ohio, Pennsylvania, Maryland, Virginia, West Virginia and Eastern Kentucky. With the exception of a relatively small tonnage transported by truck for short-hauls to domestic and industrial corsumers in or near the mining regions, the coal is transported from the mines by rail. The principal consumers of bituminous coal in this area are gas and electric utilities, railroads, by-product coke plants, iron and steel,cement,chemical and textile industries and coal sold for domestic consumption through retail dealers. The largest single movement is to the tidewater ports at Balti- more,Philadelphia, New York and Hampton Roads. This tonnage moves by rail to the ports thence to destination by water. A portion of the tonnage from the tidewater ports moves by water to points in New England along the Atlantic Coast and is further transported by rail from those points to interior New England destinations. 1941 1942 1943 1944 1945 1946 Table 11 shows the coal, in net tons,dumped over facilities at these ports, for the years 1941 to 1946, inclusive: TABLE 11 37,563,972 38,246,555 39,420,711 44,240,467 45,477,879 48,424,924 (Authority Tidewater Bituminous Coal Statistical Bureau) As an indication of the areas served with coal through these tidewater ports, Table 12 shows the tonnage for the year 1946, classified by the destination areas to which the coal moved beyond the tidewater ports, the tonnage moving to foreign destinations and that consumed as bunker coal: · 27 S TOTAL New England Baltimore Área Philadelphia Area New York Area Norfolk Area Bunker Foreign TABLE 12 1941 1942 1943 1944 1945 1946 Net Tons In connection with the tidewater tonnage particular attention is directed to the 13,351,244 net tons, moved through these ports in 1946 to foreign countries. This represents an increase of 10,773,985 net tons over the pre-war year of 1941. " 12,060,890 3,485,797 4,071,842 14,336,902 At the close of World War II this country began moving increased volumes of coal to the European Countries. Since that time the de- mand has so increased that at present the tonnage is controlled only by the availability of coal, transshipping facilities and boats. Indications are that this demand for U S coal should continue for the next two or three years. 106,986 1,011,263 13,351,244 48,424,924 In addition to the coal as shown above moving to New England through the tidewater ports there is also a substantial all-rail movement. This tonnage is shown in Table 13 for the years 1941 to 1946,inclusive: TABLE 13 Net Tons 6,384,531 10,038,228 10,365,452 9,571,035 7,872,234 6,901,038 A In the year 1946, 5,800,000 net tons moved all-rail via the St Lawrence River Gateways, via the Lake Ontario Ports and via the Coburg Car Ferry route, destined to Canada. This coal is used principally for railroad fuel and other industrial purposes. The Bituminous Coal tonnages moving all-rail to destinations in Trunk Line Territory are not available, and in lieu of such data, tonnages, excluding tidewater,reported by the US Department of Interior, in their Mineral Market Report, MMS No. 1497, are shown in Table 14. These tonnages, which do not include railroad fuel, for the coal year ended March 31,1946, to destinations in the States of Pennsylvania, New Jersey, New York, Delaware District of Columbia, ܕ - 28 Maryland, and Virginia, classified as to use, are as follows: TABLE 14 State Ń J *N Y Del D of C Md *Penna Va TOTALS Net Tons gas. Industrial Retail Yās 4,215,324 9,809,049 327,972 1,282,352 2,507,038 **15,846,346 6,009,048 39,997,129 By-Product and Water Ges 93,423 4,167,595 716,582 1,551,057 43,460 516,619 726,115 1,590,973 2,566,355 **26,444,585 2,244,982 1,304 15,945 404,022 1,458 8,365,170 32,709,198 30,147 Storage and Smithing 1,353 7,247 6,442 4,998 ر Total 5,031,771 15,532,699 372,785 1,806,218 4,825,430 *There is an undetermined amount of this tonnage moving to destina- tions in Western Pennsylvania and Western New York which is outside Trunk Line Territory. **Includes water borne coal in Pittsburgh District. Except as to the tonnage to destinations in the State of Pennsyl- vania,substantially all of this tonnage moves to market by rail. 44,873,231 8.659,510 ´81,101,644 Other sources of energy or fuel competing in this area with bituminous coal are hydro-electric, fuel oil,diesel oil and natural GEND At present fuel oil and diesel oil are severe competitors of bituminous coal. Several utilities, industries and large buildings and apartments using fuel oil for space heating and which converted from oil to bituminous coal during the war have reconverted to oil. While other conversions from coal to oil have been made, indications are that industrial fuel oil,during the next heating season, at least, may be in short supply and this will tend to prevent additional large scale conversions. Substantial inroads are being made in bituminous coal consumed as railroad fuel due to the many diesel locomotives being put in operation by the railroads. While natural gas has displaced some bituminous coal, the competi- tion with that fuel in the past has not been as serious as in many other parts of the country. Present indications are, however, that in the near future the natural gas people will make every effort to bring it into the Atlantic Seaboard areas of Philadelphia, Baltimore, New York and New England, Those areas are now served exclusively with manufactured gas, a substantial part of which is produced from bituminous coal or coke. KS, SPAN - LAK - t 29 In the early part of 1937, naturel gas from the Oriskany Field of Pennsylvania and Western New York became available at very low prices to consumers in the Southern Tier of New York State and at that time several industries converted from coal. The gas from this field was quickly expended and during the latter part of 1939, when the pro- duction in those fields diminished, many of the industries returned to bituminous coal. Syracuse, NY and Washington, DC for many years have mixed manu- factured gas with natural gas, but those two cities are now in the process of converting to straight natural gas and it is expected the conversion will be completed by the end of this year. On February 10,1946, the War Assets Administration announced that the so-called "Big Inch" and "Little Big Inch" pipe lines, which for some time previously had been used for the transmission of natural ges,were sold to the Texas Eastern Transmission Company to be operated primarily for the purpose of transporting natural gas for sale along the Eastern Seaboard. The Texas Eastern Transmission Company now have pending before the Federal Power Commission an ap- plication for a certificate of public convenience and necessity to operate and initially sell at the eastern termini of those lines, approximately 425,000,000 cubic feet of ges per day. It is proposed to sell this gas in the Philadelphia, Pa, Chester, Pa and Trenton- Paterson-Jersey City, NJ areas. Later they propose to deliver natural gas to Baltimore, Md and Now England. し ​Also pending before the Foderal Power Commission is an applica- tion of the Trans-Continental Pipe Line Company for certificate of public convenience and necessity to construct and operate a natural gas pipe line from the State of Texas for delivery to points located in the Eastern Seaboard arcs in the States of New York, New Jersey, Pennsylvania, Delaware and Maryland. It is estimated this line will have a aily capacity of approximately 325,000,000 cubic feet. Ka The proposed initial natural gas capacity of the Texas Eastern and Trans-Continental Pipe Lines is equivalent to approximately 11,000,000 tons of bituminous coal annually. Wate RATE STRUCTURE The proposed natural gas pipe lines just mentioned cannot, of course,be constructed and operated in the absence of authorities from the Federal Power Commission. Coal, railroad, labor and other interests identified with solid fuels have intervened in the proceed- ings pending with the Commission and will oppose the projects in every proper manner. D } 1. Rates to this territory are generally on an origin group basis, with all mines in a group carrying uniform rates. 2. In the destination areas, rates are also generally on a group basis. As a rule both the origin and destination groupings are of long standing. A : 7 : - gu 30 - 3. From the Northern Fields of the Appalachian Region, the Clear- field and Cumberland-Piedmont-Somerset Districts, embracing mines located in Central Pennsylvania and Maryland are the base-rate districts. Generally speaking, to destinations in New York State east of the Genesee River, the Clearfield District is the base-rate district. To the remainder of Trunk Line Territory (except as shown in Pàra- graph 5), including the tidewater ports at Baltimore, Philadelphia and New York, rates from the Clearfield and Cumberland-Piedmont- Somerset Districts are generally the same. - 4. Rates from mines in Western Pennsylvania and Northern West Virginia are differentially related to the rates from the Clearfield and Cumberland-Piedmont-Somerset Districts. There are also rates from mines in Virginia, Southern West Virginia and Eastern Kentucky on the Chesapeake & Ohio Railway, Norfolk & Western Railway, Virginian Railway, New York Central Railroad and lateral connections to this territory which are made with rela- tion to the rates from the Clearfield and Cumberland-Piedmont-Somer- set Districts. These rates are all higher than the rates from the base districts. 5. From the Southern Fields of the Appalachian Region, the Pocahon- tas and New River Districts, embracing mines located in Southern West Virginia and Virginia, are the base-rate districts eastbound to desti- nations in Virginia, including the tidewater ports at Hampton Roads, Va. 6. Rates from mines in the Kanawha, Kenova and Thacker Districts in Eastern Kentucky,Virginia and West Virginia, and from mines in the Kentucky and Big Sandy Districts in Eastern Kentucky to points in Virginia above referred to, are differentially related to the rates from the Pocahontas and New River Districts and are higher than the rates from the base districts. As is characteristic of most all coal rate adjustments, the formulation of the origin and destination groupings has been in- fluenced by geographical and geological considerations and by com- petition, rather than by distance. Generally the coal found in the base districts is low-volatile and in the differential districts high-volatile. ܝ The rate structure to this territory is generally built around the rates prescribed or approved by the Interstate Commerce Commis- sion and Pennsylvania Public Utility Commission and the more import- ant decisions are shown below: L 1 1 · 31 þ Docket No. 12726 15354 15345 15006 18471 Title Hagerstown Chamber of Commerce v W Md Ry Co Waynesboro Chamber of Commerce v W Md Ry Co Tidewater Portland Cement Co v C&P RR Eastern Bituminous Coal Investigation Citation and Date of Order 74 ICC 741 12/22/22 147 ICC 463 10/8/28 147 ICC 463 10/8/28 140 ICC 3 3/12/28 International Paper 146 ICC Co v BR&P Ry Co et al 59 7/2/28 Origin Territory *C-P-S end related districts ?? *C-P-S and related districts Mines in Pa, Md and Northern W Va Mines in Va, Southern W Va and Eastern Kentucky **NR-Poc and re- lated districts Clearfield and related districts Rates Prescribed or Approved To #Hagerstown and Security, Md #Waynesboro,Pa #Union Bridge, Md # #Washington, DC, Baltimore, Md Baltimore, Md for transshipment in- side the capes. Tidewater Forts. New York, Phila- delphia, and Baltimore,except to Baltimore for inside capes, found not un- reasonable or otherwise unlaw- ful. Tidewater Ports at Hampton Roads, Va found not un- reasonable or otherwise unlaw- ful. Gut #Destinations in Pennsylvania, Maryland,Delaware, New Jersey and New York States. #Syracuse,Solvay, Oswego, Corning, Ithaca, Bingham- ton,Watertown, NY and other desti- nations in New York State. ܪ 1 32 Docket No. 23430 PSC Pa Central Pa Coal Dockets Producers Assn v 8400 B&O RR et al and 8401 23653 23842 27669 Title Central Pa Coal Producers Assn v B&O RR et al 27648 Staunton Brick Co v C&O Ry State Corp of Va v N&W Ry Property Owners Committee et al v C&O Ry et al Ashland Cool and Ice Co et al v ACL RR et al * ** # Citation and Dete of Order 196 ICC 203 7/24/33 5/1/34 190 ICC 302 12/19/32 190 ICC 325 12/19/32 237 ICC 549 3/5/40 256 ICC 429 11/8/43 Origin Territory Mines in Pa, TL Territory for Md and track delivery Northern found not un- W Va reasonable, except from *C-P-S Dis- tricts rates pre- scribed to #Chambersburg and Greencastle,Pa. To Tidewater Ports of New York, Philadelphia and Baltimore found not unlawful. .. Clearfield and related districts To various des- tinations in Pa including Phila track delivery and Phila for transship- ment inside capes. #Staunton, Lexing- ton, Lynchburg, Waynesboro, Charlottesville, Va and other points in Va **NR-Poc Rates Frescribed or Approved To and re- lnted districts Southern W Va and Eastern Kentucky M Tidewater Ports at Hampton Roads for transshipment to destinations outside the Va Capes found not unreasonable. Va,W Va and #Richmond, Peters- and Eastern Kentucky Cumberland-Piedmont-Somerset Districts. New River-Pocahontes Districts Indicates prescribed rates. There has been no demand by shippers or consumers in this territory for any revolutionary changes in the type of railroad equipment used in the transportation of bituminous coal. burg, Hopewell, Lynchburg and other destina- tions in State of Virginia. To Nor- folk, Newport News, Suffolk endEEast- ern Virginia found not unreasonable. GRAN J - 33 SECTION IV BITUMINCUS COAL NEW ENGLAND Bituminous coal, the nation's most important source of power, has long been an important traffic item on the New England railroads and for the year 1941 constituted 10% of the total traffic handled. Generally speaking, the great bulk of bituminous coal from the Northern fields, centering in the State of Pennsylvania but also in- cluding limited areas in Maryland and northern West Virginia,reaches New England via all-rail routes, while traffic from the so-called Southern fields in West Virginia, Kentucky and the western area of the state of Virginia is moved by rail from the mines to Hampton Roads, thence by collier (coal-carrying steamship) to New England ports; traffic consumed back of tidewater is moved by rail or truck. Approxi- mately 3% of the tidewater coal reaching New England originates in the Northern fields and is transshipped to New England at New York, Philadelphia and Baltimore. During the war there was some disruption in the normal flow of traffic by water, but conditions have assumed or are assuming their pre-war status. Table 15 sets forth the tonnages of bituminous coal received in New England via all-rail routes and via tidewater for the years 1928 to 1941. Bituminous coal received in New England in 1941, compared with 1928 was as follows: New England Received via Tidewater Received via Railroads TOTAL NEW ENGLAND Net Tons 1928 13,725,518 6,473,000 20,198,518 1941 13,524,024 6,385,000 19,909,024 Decrease Percent 1.5 1.4 1.4 The year 1941 was the last year before World War II and no com- parisons are made with subsequent years as war conditions drastically altered the traffic movement. WAN According to Table I of the Bituminous Coal Economic Study, there were produced in the United States in the year 1928 approximately 500,745,000 tons of bituminous coal and in 1941, 514,149,000 tons. Therefore, New England consumption of United States production was approximately 4% in 1928 and slightly less than 4% in 1941. 1 Under normal conditions there are four methods of distribution, of bituminous coal from the mines to consumers in New England: (1) All-rail direct from mines to consumers. (2) Rail-water-rail. (3) Rail-water-truck. (4) Rail-water to consumers located on tidewater, with tidewater facilities for the receipt of coal. * 34 1 ; # YEAR 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 NEW ENGLAND TIDEWATER 13,725,518 14,777,043 14,098,477 13,139,510 10,380,234 12,122,295 12,268,736 12,348,552 13,319,770 12,985,812 10,256,134 11,945,421 12,913,251 13,524,024 ALL-RAIL AND TIDEWATER RECEIPTS OF BITUMINOUS COAL IN NEW ENGLAND (NET TONS) 1928 - 1941 NEW ENGLAND ALL-RAIL 6,473,000 6,781,000 6,149,000 5,611,000 4,544,000 4,787,000 5,422,000 5,210,000 5,078,000 4,885,000 4,104,000 4,626,000 4,892,000 6,385,000 î TABLE NO. 15 S TOTAL NEW ENGLAND 20,198,518 21,558,043 20,247,477 18,750,510 14,924,234 16,909,295 17,690,736 17,558,552 18,397,770 17,870,812 14,360,134 16,571,421 17,805,251 19,909,024 : - 35 There is no trucking of bituminous coal from the mines to desti- nations in New England. Cargoes of coal are brought to the principal New England ports in deepwater colliers from Hampton Roads, Va. Prior to the war these colliers were of various capacities, ranging from 6,000 to 8,000 net tons,and since the war vessels of capacity as high as 10,000 tons have been constructed. These colliers are operated largely by private carriers. Coal is also moved by bargs from Hampton Roads, Baltimore, Phila- delphia,New York and from the deepwater New England ports to subports or smaller ports. Barges used in this service are owned by the coal companies or for-hire carriers. Among the principal users of bituminous coal in New England are gas and electric utilities, by-product coke plants, railroads, paper, textile and various other diversified industries. Bituminous coal is not sold to any great extent for domestic or household use through retail dealers. Competitive Fuels and Sources of Energy Among the major uses of bituminous coal is its use in the genera- tion of electric power,which, of course, may also be generated by the harnessing of water power. S Hydro plant output in New England in a given year depends general- ly upon water conditions of that year, rather than upon conditions of market demand. Hydro power is produced with very low operating costs,with most expenses incident to its production being fixed. Thus, hydro plant expense is but very little more when running at full capacity than during curtailed operation. Hydro output is but a small part of the total output of electric power and it is only natural that hydro plants should at all times be kept running as nearly at capacity as possible,while variations in the demands for electric power are taken care of by expanding the operations of fuel-operated plants, which can in slack times be shut down, with great savings in fuel costs. Thus, in times of low demands, coupled with favorable water conditions, the hydro output rises to a higher percentage of the total power produced; conversely, in years of great power demands, particular- ly when coupled with unfavorable water conditions, the percentage relationship drops. The production of electric energy in New England from all types of prime movers was 3,287,853,000 kilowatt hours in 1920. and 8,968,302,000 kilowatt hours in 1940, or an increase of slightly under 173%. The production of electric energy from hydro power was 1,014,989,000 kilowatt hours in 1920 and 2,772,998,000 kilowatt hours in 1940, or an increase of 173%. However, it will be noted that whereas the total production of electricity between these years increased by 5,680,449,000 KWH, that produced by water power increased only 1,758,009,000 KWH. солодки • P - 36 Competition with Petroleum Fuel oil is the most serious competitor of bituminous coal in New England. The consumption of fuel oil in New England increased more than 200% from 1928 to 1941, while the use of bituminous coal declined 1.4%. The location of oil producing and refining plants at or near tidewater and the concentration of New England population and industry at the ports or within a short distance inland give oil a strong advantage in competition with coal,due primarily to the use of readily accessible water transportation. An illustration of the increase in the use of oil through the years will be observed from the following: in the production of electric energy there were con- sumed in New England 543,515 barrels of oil in 1920 and 4,299,486 barrels in 1940. Table 16 shows the tremendous rise in fuel-produced electric output in the years 1920 through 1940, but the bituminous coal consumed, after dropping in relationship to the consumption for the year 1920, was in 1940 in only a slightly better position than in 1920. Rates Mileage scale rail freight rates on tidewater coal for movement from New England ports to interior consuming points, were prescribed by the Interstate Commerce Commission in Docket 21121,State of Connecticut v NYNH&HRR, et al, 161 ICC 211,decided February 4,1930. On account of motor truck competition, however, it has been necessary to publish a number of rates on levels below the prescribed scale. The all-rail rates on bituminous coal from the Northern fields are on an origin and destination grouping. They have been in effect generally for many years and, as to origin territory, the castbound differential grouping applies to New England. The rates to the coastal areas of New England have been strongly influenced by water competition and there is outstanding relief from the long and short haul provisions of the Fourth Section of the Interstate Commerce Act, permitting the maintenance of lower rates along the coast and, to a limited extent, on navigable waters adjacent to the coast than to intermediate New England points. S The all-rail rates have been reviewed and adjusted by the Commis- sion and their history is set forth in minute detail in Docket 15006, Eastern Bituminous Coal Investigation, 140 ICC 3,decided March 12, 1928; Docket 23430, Central Pennsylvania Coal Froducers Association, et al, v Carriers, 196 ICC 203,decided July 24,1933; and Docket 23024, State of New Hampshire v Carriers, 201 ICC 445, decided June 11,1934. There have been other, smaller cases, involving, however, spot adjustments. S In Docket 15006, Coal Investigation, 101 ICC 363,decided July 22, 1925, and 104 ICC 341,decided November 28,1925, the Commission pre- scribed all-rail rates on bituminous coal from the so-called Southern fields,located on the lines of the C&O Ry, NYCRR, N&W Ry and Virginian Ry, to points in New England. These rates are made differ- entially over the rates from the Clearfield group (the Northern base .. Y 37 YEAR 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 FUEL-PRODUCED FUEL-PRODUCED ELECTRIC OUTFUT AND BITUMINOUS COAL CONSUMED FOR PRODUCTION OF ELECTRIC ENERGY IN NEW ENGLAND ELECTRIC OUTPUT low4:0 14LBASOV VODE (000 K.W.H.) 2,272,864 2,175,177 2,519,464 3,022,053 2,897,689 3,186,039 3,485,248 3,481,200 3,580,177 4,585,268 4,263,095 3,881,835 2,873,314 3,414,403 3,595,060 3,963,593 4,644,589 4,607,515 4,053,829 5,474,352 6,195,304 F + INDEX ***A**JALNE OPO- 100 96 111 133 127 140 153 153 158 202 188 171 126 150 158 1920 174 204 203 178 241 273 JDE ARTEN ESTE GLE - - 1940 BITUMINOUS COAL CONSUMED *AY MERIT FALLS ZAPRESE TONS NIE MAETTARIT Jlt mot ja erratturites, si brann i get man d 2,648,359 2,141,923 2,309,765 2,576,184 2,430,590 2,725,385 2,773,407 2,703,188 2,746,169 3,131,301 2,750,585 2,395,115 1,604,847 1,694,900 1,918,189 2,025,097 2,380,282 2,413,558 1,935,328 2,236,550 2,909,919. TABLE NO. 16 CREDE : SEREN OPEN B INDEX 100 81 87 97 92 103 105 102 104 118 104 90 61 64 72 76 90 91 73 84 110 1 1 • 38 group). From their initial establishment the differentials in the rates from the Southern fields over the Clearfield rates were not uniform to all New England destinations nor via all routes. Thus, to destinations on the New Haven,with some exceptions, the rates were originally $1.10 over the normal rate from the Clearfield group. To points on the B&A the original prescription was generally $2.10 over Clearfield and to points on the B&M the same differential, with some exceptions. However, because of the various adjustments in rates from the Clearfield and related groups since 1925, the original line-up from these mines has been changed to some extent. General No suggestions or requests have been received from receivers re- garding changes in the rail coal handling facilities and services. The present situation is, therefore, satisfactory. ܐܙ : - 39 SECTION V BITUMINOUS COAL, CFA TERRITORY AND CANADA, VIA DETROIT AND NIAGARA FRONTIER GATEWAYS, AND ACROSS LAKE ERIE CAR FERRY Central Freight Association Territory consists roughly of Western New York,Western Pennsylvania, Ohio, Indiana, Illinois, and the Lower Peninsula of Michigan. It constitutes the largest market for bitu- minous coals in this country. Its supplies are drawn predominately from the Appalachian coal producing areas of Pennsylvania, Maryland, West Virginia,Virginia,Eastern Kentucky and Tennessee, and from the midwestern fields of Indiana, Illinois and Western Kentucky, the dis- tribution of the latter being limited to the marketing areas of Illinois, Indiana and, to a slight extent, Michigan. Except for the industrial areas on inland waterways, principally the Ohio, Monongahela, Kanawha and Illinois Rivers and communities within the coal fields, the movement is by rail or river-and-rail, rail-river-and-rail, and rail-lake routes. Although complete statistics are not available, Table 17 which was compiled from the reports of the Ohio Bureau of Coal Statistics is indicative of the tremendous consumption and movement of coal from Appalachian Region via rail or river-rail or rail-river-rail routes to CFA Territory and to Canada via the gateways dealt with in this section during the six years just past: TABLE 17 MOVEMENT OF BITUMINOUS COAL FROM APPALACHIAN AREA TO CFA TERRITORY AND CANADA VIA DETROIT, NIAGARA FRONTIERS AND LAKE ERIE CAR FERRY (EXCLUDES LAKE CARGO COAL) 1941 1942 1943 1944 1945 1946 Net Tons 99,868,764 90,114,353 103,835,029 102,865,326 S 93,456,394 88,372,255 Lake cargo coal transshipped at Lake Erie ports also constitutes an important part of the coal supplies of CFA Territory and Canada, and. Table 18 shows the total dumpings at those ports of both cargo and vessel fuel coals for the years 1941 through 1946. Only part of the lake cargo coal transshipped at Lake Erie ports is ultimately consigned to the marketing areas here under considera- tion. Table 19 shows the distribution of lake coal dumpings at Lake Erie ports for the years 1944, 1945 and 1946. P 40. TABLE 18 TOTAL LAKE CARGO BITUMINOUS COAL DUMPINGS AT LAKE ERIE PORTS Vessel Fuel Total 51,370,291 49,451,363 47,480,921. 55,493,470 51,304,560 49,556,837 1941 1942 1943 1944 1945 1946 · Destination Ports LAKE SUPERIOR PORTS US Canada 1,510,128 1,406,908 1,290,848 Authority: Ore and Coal Exchange TABLE 19 DISTRIBUTION OF LAKE CARGO BITUMINOUS COAL DUMPINGS AT LAKE ERIE 1944-1945-1946 LAKE HURON AND GEORGIAN BAY SAULT STE. MARIE & RIVER PORTS US Canada PORTS US Canada LAKE MICHIGAN PORTS US ST CLAIR RIVER, LAKE ST CLAIR AND DETROIT RIVER PORTS US Canada Canada WELLAND CANAL LAKE ONTARIO & ST LAWRENCE RIVER PORTS US Canada Cargo 49,709,416 47,810,802 46,085,513 53,983,342 49,897,652 48,265,989 10,926,781 1,607,450 LAKE ERIE PORTS US 1944 % of Net Tons Total TOTAL ALL PORTS US Canada GRAND TOTAL 861,864 1,978,155 15,165,760 28.09 20.24 2.98 1,646,407 3.05 1,579,445 2.93 1.60 3.66 3,718,636 1,307,716 9,393,681· 17.40 1,019,879 1.89 59,652 4,717,916 6.89 2.42 .11 8.74 1,660,875 1,640,561 1,395,408 41,772,781 77.38 12,210,561 22.62 53,983,342 100.00 1945 Net Tons -924,384 1.85 1,574,164 3.16 % of Total 9,498,540 19.04 10,937,828 1,508,350 3.02 1,535,662 15,110,232 30.28 8,124,209 993,000 རྗ 63,712 4,169,055 3,561,585 7.14 1,278,119 2.56 3.69 1,778,783 3.56 1,778,668 1,313,519 2.63 1,402,919 2.91 16.28 1.99 1946 Net Tons .13 8.36 39,061,445 78.28 78.28 10,836,207 21.72 49,897,652 100.00 Authority: Ore and Coal Exchange 715,650 1,797,404 30.28 14,037,340 29.09 % of Total 7,526,707 838,749 22.66 3.18 1.48 3.72 42,249 3,671,933 15.59 1.74 2,844,420 5.89 1,136,450 2.35 .09 7.61 37,882,862 78.49 10,383,127 21.51 48,265,989 100.00 } 41 1 Within CFA Territory coal is utilized for practically all possible purposes. Its chief uses, however, are for domestic, electric generation, railroad fuel,metallurgical purposes and the cement and ceramic in- dustries. The distribution of the total consumptions between these and the other less important uses, while not definitely known, is probably not dissimilar to the apportionment in the nation as a whole, although the relationship of that used in metallurgical pur- poses probably exceeds the overall average, due to the dominance of the iron and steel and allied industries requiring large quantities of blast furnace and foundry coke, The Canadian market, which is served to a very large extent by all rail routes through Detroit and Niagara Frontier gateways and Lake Erie car ferrys and via Lake Erie ports as cargo coal, constitutes the most important and constant foreign outlet for U S coals. In that market, this country's coal industry must overcome not only the trade favoritism accorded the British coals, but also subventions and other aids which the Canadian government extends to its own coal industry, situated principally in the Maritime Provinces and in Alberta. Notwithstanding the deliberate preferences so accorded the competing coals, U S coals have always maintained their place in the Canadian market, and during the war just past when British and other sources of supply were cut off and Canada's own production severely curtailed, American coals made up the deficiency. They, in fact, alone made possible Canada's war effort. That Canada will in the future continue to purchase American coals in quantity is a certainty, and the reasons therefor are clearly stated in the following paragraph from page 582 of the report of the Royal Canadian Commission on Coal issued in December, 1946: "It has often been advocated that the Federal coal policy should be to make Canada independent of foreign countries for its coal supply. To achieve independence at the 1945 level of consumption, Canadian mines would have to produce 43,000,000 tons of coal an- nually, an increase of 27,000,000 tons over their production in 1945. Maritime production in 1945 was about 5,500,000 tons, end the highest production achieved by these mines during the past twenty years was less than 8,500,000 tons a year. It is our opinion that Maritime production of from 7,000,000 to 8,000,000 tons annually could be attained, but a production in excess of 10,000,000 tons would be extremely difficult to achieve. Assuming Maritime production could make available for central Canada 5,000,000 tons of coal, which is unlikely, it would be necessary to provide over 20,000,000 tons from western sources. From the point of view of coal reserves, this is feasible. The cost of moving the coal, however, would be very large, and the laid-down cost of the coal in central Canada would be far in excess of that of imported coal. On the average the laid-down cost would be in the neighborhood of $5.00 a ton more than that of imported coal. Assuming an $8.00 freight rate for western coal, and making an allowance for the increased cost of moving a larger tonnage of Nova Scotia coal, the total additional cost of self-sufficiency would be at least $100,000,000 annually. Independence may be 42 physically possible, but it is too impractical to merit further attention. Central Canada must therefore continue to rely mainly on United States sources of supply." RATE STRUCTURE The all rail rate structure in CFA Territory, exclusive of that applicable for extremely short hauls, necessarily follows the usual pattern of large origin and destination groups. The origin groups are controlled generally by geography and to some extent by the kind and qualities of the coals produced and the railroads serving the areas. The origin groups are usually related one to the other by differential relationships. Destination groups developed initially around the principal centers of population and industry and extensions of them deemed desirable in the interests of industrial expansions. This method of rate-making, although resulting in the substantial dis- regard of distance, has through the years proved acceptable to the railroads and the public, and it has been found by the Interstate Commerce Commission to be consistent with the requirements of the Interstate Commerce Act. It, more than any other possible rate-making method, promotes expansion of both the mining industry and those de- pendent upon coal as a source of energy or as a raw material. The important lake cargo coal adjustment includes origin differ- entials relating all of the competitive producing districts and also port equalization, so that all coals may be shipped on rate parities to more than one port of transshipment. Inasmuch as the many coal fields of the Appalachian Area are in- tensely competitive throughout CFA Territory, and in addition, meet competition with Midwestern coals at markets adjacent to the latter, it is but natural that the rate adjustments to CFA Territory have many times been before the Interstate Commerce Commission. The fol- lowing tabulation cites some of the more important cases involving rates from the Appalachian Area to CFA destinations and Lake Erie ports: Docket No. I&S 774 13841 CFA Territory 12698 et al Ohio-Michigan Coal 24388 → Title Cases Bituminous Coal to 46 ICC 66 July 13,1917 80 ICC 663 June 8,1923 Citation and Dete Decided Indiana State 83 ICC 591 Chamber of Commerce Oct 31,1923 vs B&O et al Chamber of Commerce 203 ICC 121 of Greenville, Ohio, July 3,1934 et al vs AC&Y et al Scope Crescents and Ohio to CFA Affected Territory Crescents and Ohio to CFA Affected Territory and Northern Ohio Crescents and Ohio to Affected Territory in Indiana Crescents to Greenville, Ohio, Union City and Saratoga, Ind ¡ 1 damen Chann 43 Docket No. 24216 et al St Johns Co-op Co et al vs CNS&MRR et al 15698 et al Kalamazoo Chamber of Commerce et el vs C&ORy et al I&S 3282) I&S 3619) 27402 Title 28825 25566 et al Intrastate Rates on Bituminous Coal within the state of Ohio Ohio 13071 Penna 13586 Coal, Bituminous, ex- river from Conway, Pa and Colone,Pa to Youngstown, Ohio PL&W et al Practices ICC 17745 ) Penna 6687) Ohio Coal Assn vs PRR et al 27690 et al Rochester & Pitts- burch Coal Co vs B&ORR et al L 25656 et al H W Showalter,Recr H W Showalter,Recr, 208 ICC 645 Continental Coal Co May 6,1935 et al vs AC&Y et al Citation and Date Decided National Petroleum Assn et al vs B&O RR et al 185 ICC 669 June 27,1932 107 ICC: 291. Jan 14,1926 197 ICC 617 Dec 5,1933 227 ICC 73 Apr 4,1938 Bituminous Coal to 263 ICC 683 Youngstown District Oct 2,1945 264 ICC 347 Mar 4,1946 May 9,1947 American Viscose Co Sept 7,1943 vs B&LERR et al 12560 et al Lackawanna Steel Co 87 ICC 383 et al vs Dir Gen as Jan 26,1924 Agent, PRR et al 192 ICC 413 May 2,1933 18514 et al Acme Coal Co et al 159 ICC 681 vs B&ORR et al Dec 3,1923 226 ICC 265 Feb 14,1938 163 ICC 625 May 12,1930 Scope Crescents and Ohio to various points in Lower Peninsula of Michigan Crescents and Ohio to various points in Lower Peninsula of Michigan and Elkhart, Ind Ex-River coal to North- eastern Ohio Leetonia District to Youngstown, Ohio Eastern Ohio Districts to Northeastern Ohio (13th Section) Fairmont District to Northeastern Ohio Western Pennsylvania and Northern W Va to Youngstown District No 8 and Middle Dists to Youngstown Area B&LERR Freeport Dist to Meadville,Pa Western Penna & Easter Ohio to Buffalo, NY and Niagara Frontier Western Pennsylvania to Buffalo Group Northern West Virginia to Buffalo, NY Group Pennsylvania and Northern W Va to Warren,Pa Group : V · 1 · 44 ❤ Docket No. 8725 et al 15007 et al I&S 2967 23240 et al Title Lake Cargo Coel Rates Lake Cargo Coal Rates 1925 Lake Cargo Coal from Ky; Tenn,Va and W Va to Lake Erie Ports Lake Cargo Coal Cases 1930 Citation and Date Decided 46 ICC 159 July 13,1917 (101 ICC 513) (July 16,1925) 126 ICC 309) (May 9,1927) (200 ICC 4 ) (Feb 20,1930) 139 ICC 367 Feb 21,1928 181 ICC 37 Jan 5,1932 : Scope * Appalachian Region to Lake Erie Ports for transshipment Appalachian Region to Lake Erie Ports for transshipment Southern Appalachian Districts to Toledo & Sandusky, Ohio for transshipment Appalachian Region to Lake Erie Ports for transshipment ► 45 SECTION VI BITUMINOUS COAL TO THE SOUTHEAST (VIRGINIA, NORTH CAROLINA, SOUTH CAROLINA, GEORGIA AND FLORIDA) Virginia is an important bituminous coal producing state. It ranked seventh as a coal producing state during seven years of the ten-year period 1936-1945, Alabama holding that position for the other three years. It also produces some so-called semi-anthracite coal,but this production and the limited distribution hardly warrant consideration here. Also very small amounts of bituminous coal are produced in Georgia and North Carolina, but since such production has not exceeded 32,000 tons annually during the ten-year period 1936- 1945, this production likewise does not justify. further mention in this report. The mines producing the major portion of the coal in Virginia employ modern mining methods. These mines comprise the so-called Southwest Virginia Group and a portion of the so-called Pocahontas Group. While some of the mines have reached their peak production and are on the wane,other mines are in the process of development, which indicates that the production in Virginia will increase. Modern and efficient tidewater coal piers are maintained by the three Pocahontas lines (C&O, N&W and Vgn) at Hampton Roads, and the movement of coal through these piers is by far the most voluminous single class of movement in these five states. Tidewater coal piers are also maintained by the Southern Ry at Charleston, SC. Below is shown, in gross tons, amounts of tidewater coal transshipped through these piers during 1940 and 1945: Hampton Roads Charleston, SC 1940 19,935,161 111,878 1945 14,958,190 1,140,156 The coal transshipped at Hampton Roads is preponderantly from the fields served by the Pocahontas Roads and that transhipped at Charleston is from Eastern Kentucky, Tennessee and Alabama Mines on Southern railroads. The decrease of approximately 5 million tons in the amount of tidewater coal through Hampton Roads piers in 1945 as compared with 1940 warrants special comment. It was due to abnormal conditions caused by the war. During 1945 movement of coal that would normally have been tidewater coal through Hampton Roads moved to tidewater piers on the Atlantic Coast north of Hampton Roads for transshipment through those piers, such movement being under temporary rates established to the northern piers for transshipment by vessel beyond. In 1945 such movement amounted to over 4 million tons. Also substantial movement that would normally move as tidewater coal through Hampton Roads piers for final destinations in New England actually moved all-rail to the New England destinations under the all-rail freight rates but subject to a government subsidy known as "Compensatory Adjustment", which had the effect of making the -'46 : transportation costs ultimately paid by the shippers on this coal about the same as what would have been paid by them had the movement been tidewater movement through Hampton Roads. The preponderance of the tidewater movement to Hampton Roads is for transshipment by vessels to destinations outside the Virginia capes, either coastwise or for export. Normally the movement is from origins on the Pocahontas lines in Virginia, West Virginia and eastern Kentucky and origins on the Interstate RR in Virginia. In ICC Docket 27669,Property Owners Committee, et al vs C&ORy, et al,decided March 5, 1940, 237 ICC 549, the Commission found not unreasonable the rates on coal from C&O, N&W and Vgn mines to Hampton Roads for transshipment by vessel to destinations outside the Virginia capes, and it also found that the dumping charges at Hampton Roads, which are in addition to the line-haul, transportation charges, were not unreasonable. There are no other tidewater coal piers located in these five states. Small quantities of coal are placed in vessels at other coastal points, but this is done by means of clamshells or similar equipment. However, there are coal piers located at Pensacola, Fla. Normally the coal transshipped to vessels through these piers is of small volume and primarily for bunkerage purposes, amounting to less than 50,000 tons in 1940. However, during the war period substantial coal tonnages,principally export cargo, have been handled through these piers, amounting to approximately 1 million tons in 1945, most of which originates in the Western Kentucky and Southern Fields, although the normal movement is from Alabama. : Table 20 shows distribution of bituminous coal from the respective origin districts to these five states for the year 1945 as reported in Mineral Market Report, U S Department of Interior, Bureau of Mines. This statement does not include railroad fuel coal. Of the approximately 21 million tons distributed to these five states during 1945, approximately 17 million tons were distributed to Virginia, North Carolina and South Carolina, with the remaining approximately 3 million tons to Georgia and Florida. It will be observed that approximately 1/3 of the tonnage to these five states was for domestic use (retail yards) and about 2/3 for industrial use. The principal industry groups receiving these tonnages for industrial use are as follows: Electric power Textile-mill products and other fibre manufactures Chemicals and allied products Paper and allied products Tobacco manufactures Ceramics The preponderance of the tonnages referred to in this statement moved under rates resulting from a series of decisions of the Inter- state Commerce Commission, the most important of which are as follows: 1 S +4 靠 ​: Page 47 A DISTRIBUTION OF BITUMINOUS COAL (DOES NOT INCLUDE RAILROAD FUEL COAL) PRODUCED DURING THE YEAR 1945 AS REPORTED IN MINERAL MARKET REPONT MIS NO. 1444 AUGUST 1946, U.S. DEPARTMENT OF THE INTERIOR, BUREAU OF MINES (NET TONS) ΤΟ Florida Total Industrial Retail Yards By Product & Water Gas Smithing Georgia Total Industrial Retail Yards By Product & Water Gas Smithing North Carolina Total Industrial Retail Yards By Product & Water Gas Smithing South Carolina Total Industrial Retail Yards By Product & Water Gas Smithing POD 7 2,690 46 2,266 O 378 740 0 147 1,364,195 1,017,279 345,195 0 1,721 8 FROM DISTRICT OF ORIGINS - ALL RAIL 420 190,351 100,249 70,485 19,617 O 16,980 2,684,883 2,684,883 42,834 368,597 3,113,294 16,093 1,291,307 6,711 283,095 1,597,206 1,376,849 36,123 83,522 1,497,234 16,727 0 16,727 1,980 2,127 O 4,504,931 2,627,562 1,773,752 103,617 O 316,780 2,495,582 305,024 1,606,381 11,336 840,564 48,637 O 9 Art.omen CEN O 219,353 0 193,024 0 25,198 ୦ 0 1,131 о O 1-2-3-6 13 7-8-9 & 13 and 10 1,778 1,511 267 -0 O 412,394 6,871 293,319 3,390 97,949 3,481 19,617 O 1,509 2,746 5,873,650 2,604 3,648,956 142 2,119,356 O 103,617 O 1,721 280 77,207 2,889,849 1,979,427 280 67,742 о 9,465 861,365 о 48,637 O 420 O 0. 48 ooooooooo 48 0 O O O O O TOTAL о 419,265 296,709 101,430 105 5,873,755 105 3,649,061 O 2,119,356 103,617 1,721 19,617 1,509 3,113,342 1,597,254 1,497,234 16,727 2,127 2,889,849 1,979,427 861,365 48,637 420 FROM DI STRICTS OF ORIGINS-RAIL AND TIDEWATER 1 7 O 0 O ос 0 O O O O O TABLE NO. 20 0 O O O O ос о 3,113,342 1,597,254 O 1,497,234 16,727 2,127 318 0 318 0 O 451 451 O GRAND TOTAL O 419,265 296,709 101,430 19,611 1,509 5,874,073 3,649,061 2,119,674 103,617 1,721 2,890,300 1,979,878 861,365 48,637 420 : : Pagi gav min E PARE ΤΟ Virginia Total Industrial K Retail Yards By Product & Water Gas Smithing MA “A ŽBAJU GAA Com Grand Total Industrial Retail Yards By Product & Water Gas Smithing 7 3,077 886 8 FROM DISTRICT OF ORIGINS + 2005 3,077 3,552 ……… "D J. SPY NA POLZE VED DU 5,339,074 3,146,351 100,847 3,892,742 1,943,506 79,835 1,442,369 795,076 21,012 407,152 617 LETO PROSEČer 0 O MOVIES BRUSAN 13 ALL RAIL 1-2-3-6 7-8-9 & 13 and 10 O Sportamorem trazi O O 3,111 My vide | COMMEN SIRE MALA I SREE Gre TOTAL Pachable" "I SLAVE PAGE NO. 2 TABLE NO. 20 120 8,586,392 76,936 8,663,328 1,108 18,817 120 5,916,203 62,718 5,978,921 1,108 18,817 0 2,258,457 14,218 2,272,675 о 410,229 0 410,229 1,503 O 1,503 FROM DISTRICTS OF ORIGINS-RAIL AND TIDEWATER 1 7 ୦ O GRAND TOTAL 7,039,719 13,022,098 145,739 668,023 20,875,579 83,960 20,959,539 1,108 19,586 20,980,233 5,231,184 7,559,005 88,337 546,585 13,435,111 66,261 13,501,372 1,108 19,268 13,521,748 1,801,906 4,856,726 57,402 118,327 6,834,361 17,699 6,852,060 595,750 617 O 318 6,852,378 O 598,827 7,280 O 598,827 0 O 7,280 .0 8,683,253 5,998,846 2,272,675 410,229 1,503 598,827 7,280 C 48 ICC Docket 27648, Ashland Coal and Ice Co,Inc,et al,v Atlantic Coast Line Railway Company,et al, 256 ICC 429, decided November 8,1943. ICC Docket 23653, Staunton Brick Company v Chesapeake and Ohio Railway Company (embraces a number of other cases), 190 ICC 302,decided December 19,1932. ICC Docket 23842,State Corporation Commission of Virginia, et al, v Norfolk & Western Railway Company, 190 ICC 325, decided December 19, 1932. ICC Docket 23314, Corporation Commission of North Carolina v Aberdeen & Rockfish Railroad Co, et al,200 ICC 571,decided April 13,1934. ICC Docket 25798, Consumer's Coal Corporation, et al, v Atlantic and Yadkin Railway Company, et al, 213 ICC 343, decided December 11,1935. There is very little, if any, water competition encountered by the railroads in the distribution of coal to points in these states. Truck competition still is encountered in some sections but usually the scope of such competition is for short-haul distribution from the mines. A few truck-competitive rates are maintained and are successfully meeting a substantial portion of such competition. There are instances where, due to short hauls over the highways as compared with circuitous hauls by rail involving considerable inter- mediate territory to which there is no trucking, it has not been practicable to establish rail rates that would meet such competition. While the trucking of coal in these states is relatively unimportant, it,nevertheless, should be and is checked up on from time to time and analyzed with a view to appropriate rail rate adjustments where practicable. Hydro-electric power production in these South Atlantic states is an important factor as a competitor of coal and will continue to be so since there are a number of rivers capable of being developed to supply such power in addition to that which is already used. Several such river projects have in recent years been approved and are in the course of development. During the period 1920 to 1940 hydro production of electric power increased approximately 200 per- cent. This percentage increase was due to the relatively small pro- duction of hydro-electric power in 1920, whereas during the same period production of electric energy from coal increased in greater volume. In these five states and West Virginia (information not available without West Virginia being included) consumption of bitu- minous coal for production of electric energy increased from 2,913,CCO tons in 1920 to 6,452,000 tons in 1940, or an increase of 122 percent. These observations are based largely upon the report of the Sub- committee for Economic Study of Hydro-Electric Power. There are too many uncertainties with respect to the pending and other possible river development projects to undertake a worthwhile forecast of hydro-electric power production versus electric power production from coal in this group of states. G G ··· 49 - Oil competition with coal in these states is a very important factor,not only as domestic fuel but in the production of electric energy and in various industries, particularly the large paper mills located on and near the Atlantic coast. While oil competition has been given consideration with respect to the rates on coal,it has not resulted in any revision of rates to meet oil competition except to several South Atlantic coast points, to which special rates have been established, with fourth section relief to maintain normal rates at intermediate points. Oil competition in these states should be borne in mind for such action as seems appropriate as occasion requires. Diesel locomotives, while operated less extensively in this section than in other sections, have an important effect upon the consumption of coal and revenue derived from the rail transportation of coal. The following is a tabulation of steam and diesel locomo- tives owned by the railroads as listed as of January 1,of the years shown,which railroads are the principal ones operating in these five states: ACL Cof Ga C&O Clinchfield FEC N&W NS RF&P SAL Sou Vgn 1940 TO TAL 655 237 808 78 120 569 54 87 527 1,526 88 4.749 Locomotives Steam 1947 669 209 896 Diesel 1940 1947 76 87 528 48 99 502 1,442 119 4,675 27 (Authority: AAR Report CS 56 A-1) The immediately foregoing tabulation reveals that on January 1, 1947, there was a decrease of 74 in the total number of steam locomo- tives. This decrease in steam locomotives is not entirely due to conversion to diesel locomotives, since, on January 1,1947, there was a decrease of 49 steam locomotives for the Clinchfield, N&W and NS with no conversion to diesel locomo- tives. Not all of the steam locomotives use coal. Some of these locomotives use oil for generation of steam. But the great preponder- ance of these steam locomotives, even excluding those of the three Pocahontas lines, are coal-burning locomotives. The important thing is that the diesel locomotives increased from 27 at the beginning of 1940 to 347 at the beginning of 1947. This increase and additional orders which have been placed for diesel locomotives indicate a definite trend in the recent past and immediate future towards in- creased usage of diesel locomotives. The use of diesels has been influenced by a number of factors, the weight factor and the increased 2 1 QHOO O 100 30 O O 9 2 20 O O O 0 12 66. 130 0 347 } 2 - 50 cost of coal being two important influencing factors. However, from a long-range standpoint there are prospects that the diesels might not continue to have these advantages. The advances in prices of oil appear to be exceeding the advances in prices of coal, and the enduring advantage of abundance of coal should develop a price trend in its favor. Of more importance are the improvements of coal-burning locomotives, particularly the gas turbine locomotive now in process of development. It will fully meet the present weight factor advantage of the diesel. The actual and imminent improvements of the coal-burn- ing locomotives are not likely to be offset by correspondingly im- portant improvements of the diesels. The indications are that the trend in favor of the diesel locomotives is likely to continue at least for the next several years, but the successful development of more efficient types of coal-burning locomotives, including the coal- burning gas turbine locomotive and the steam turbo-electric locomo- tive now in definite prospect, will tend to reduce this trend,with the coal-burning locomotives continuing as the chief railroad motive power in this section. Virginia Georgia Florida respec- Natural gas is a competitor of coal in Virginia, Georgia and Florida,but no natural gas is piped into the Carolinas. The tive consumption of this gas in the three consuming states for representative years ending with 1944, which is the latest information available and published by U S Department of Interior, Bureau of Mines,Mineral Yearbooks covering Natural Gas, was as follows: 1932 143 3,947 618 MILLIONS OF CUBIC FEET 1936 1940 447 11,575 1,005 963 20,551 1,481 1944 1,694 35,603 6,545 P · This consumption of natural gas in these three states, while rela- tively unimportant when compared with the consumption of natural gas by the US as a whole, hevertheless, shows a constant increase, more pronounced in Georgia. Additional natural gas lines in Virginia are now being actively planned; therefore, it is anticipated that natural gas will become stronger as a competitor of coal in Virginia. Sug- gestions for combating this form of competition with rail transporta- tion of coal are not being submitted here since that general subject is receiving consideration through other channels. The Patrons' Questionnaires, of which only a few were submitted,do not contain any complaints or suggestions that are of any particular interest with respect to service, equipment or rates involved in rail transportation of coal. The principal complaint has been concerning the failure to furnish cleen cars for the loading of coal, which sub- ject is receiving active consideration by the Regional Advisory Boards'. A study of the situation indicates that, while constant efforts should be made towards improvement, there is no public demand for revolutionary changes in railroad equipment, service, rates or methods T > + - 51 · } generally used in constructing rates; that the present railroad methods call for, and probably will continue to result in, earnest effort to render increasingly better service at reasonable. charges, also proper cooperation with other solid fuel interests towards meeting as effectively as practicable the competition encountered by production and transportation of coal. While it is impossible to predict with any degree of certainty what the prospects are as to future movement of coal to this section, it being largely dependent upon the general economic condition of the country, we may reasonably expect a continuous increase of trans- portation by rail of coal in this area during the next decade. The availability of fuel, suitable water and labor are important factors concerning future development. They exist in large portions of this area and in recent years there has been a definite trend towards the locating of diversified coal-consuming industries in this area. The prospects for a continuation of this trend are good. 7 I 1 1 T 鲁 ​52 SECTION VII BITUMINOUS COAL - KENTUCKY KENTUCKY, TENNESSEE, ALABAMA, MISSISSIPPI AND LOUISIANA Coal Reserves and Production in Kentucky Eastern Field Kentucky is one of the largest bituminous coal reserve states in the nation. The United States Bureau of Mines has estimated the re- serve coal sufficient to last over 1,500 years on basis of the cur- rent high production. - Table 21 shows the production of bituminous coal for years 1910- 1946, in the principal producing states, and the percentage each of these states is of the total United States production. It will be noted that Kentucky has generally ranked fourth as a coal producing state for the past 25 years. Recent railroad extensions have opened up large reserves and many new mines are being developed. The tonnages from these new developments will more than offset mines which are working out. Guy The high quality of eastern Kentucky coal enables it to be marketed as a premium domestic, by-product and metallurgical coal which is distributed in volume throughout the Central Freight Associa- tion Territory, Northwestern States, Southern and Southeastern States. Eastern Kentucky coal is extensively handled through the Lake Erie ports to United States and Canadian destinations. Coal Reserves and Production in Tennessee The Tennessee coal field is a part of the Southern Appalachian Field and the coal produced is comparable with the quality of Eastern Kentucky coal. The Bureau of Mines has estimated coal reserves ap- proximating 75,000,000,000 tons; however, most of the remaining coal lies in relatively thin beds, which, under present mining conditions and production costs, are not particularly attractive. Table 21 shows the production of coal in Tennessee for years 1910-1946. Tennessee is one of the oldest coal fields in the Southern producing area. Consequently, many of the existing mines are old and have limited lives. Recently, a few new mines have been developed, and production over the next few years will probably be only slightly under the current level. Tennessee coal is distributed to the same general territory as Eastern Kentucky coal, but especially to Southern and Southeastern points to which the Tennessee mines have lower rates than those prevailing from other Southern Appalachian producing districts. S 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1940 1941 1945# 1946# ALABAMA M TONS • % 16,111 3.9 15,021 307 16,101 3.6 17,679 3.7 15,593 3.7 PRODUCTION OF BITUMINOUS COAL IN THE PRINCIPAL PRODUCING STATES AND TOTAL OF UNITED STATES, 1910-1946; ALSO PERCENTAGE EACH OF THESE STATES IS OF TOTAL 14,928 18,086 20,068 19,185 15,537 303 21,001 19,766 17,621 17,944 15,570 11,999 3.4 3,6 3.6 16,294 2.9 12,569 3.0 18,325 403 20,458 306 19,130 4.0 7,857 8,760 9,142 mimin 20,004 3.8 3.7 3.8 303 15,324 15,464 4667M miniminim mimini 3.5 3.4 ∞0 LO 3.3 1935 8,505 1936 12,229 1937 12,440 1938 11,061 3.2 12,047 3.1 2.3 1939 3.1 2.5 2.6 2.6 MALO66 လီလီ mm 3.3 3.0 KENTUCKY M TONS In Thousands of Net Tons) 3.5 14,623 14,050. 3.5 16,491 3.7 19,617 4.1 20.383 4.8 Lin 49,141 10.5 53,710 10.4 1942 19,301 3.3 62,231 10.7 1943 17,160 2.9 63,211 10.7 1944 18,752 3.0 71,356 11.5. 21,362 4.8 25,394 5.1 27,808 5.0 31,613 5.5 30,036 664 2.3 40,761 10.9 2.8 47,522 10.8 47,086 10.6 38,545 11.1 42,557 10.7 % M TONS 35,691 6.3 31,588 7.6 42,134 10.0 44,777 7.9 45,147 45,147 9.3 55,069 10.6 62,924 11.0 69,124 13.4 61,860 12.4 60,463 11.3 53 51,209 11.0 39,964 10.5 35,300 11.4 36.100 10.8 38,525 10.8 Game TENNESSEE VIRGINIA % M TONS % 7,121 1.7 6,508 1.6 6,433 6,473 6,860 1.4 5,943 1.6 ने ने ने 1.4 104 5,730 1.3 6,137 1.2 6,194 1.1 6,831 5,213 1.8 8,123 9.708 1.9 10,087 1.8 1.2 10,290 1.8 1.1 9,327 2.0 6,662 1.2 4,460 1.1 4,877 1.2 6,040 6,040 1.1 4,557 0.9 5,454 1.1 5,789 5,783 5,611 1.1 5,405 1.0 1.0 1.0 5,130 1.1 4,721 1.2 3.538 1.1 3.775 1.1 4,136 1.2 6,865 1.7 7.847 1.7 8,828 1.8 7,960 1.9 18,737 3.3 67,875 11.8 6,600 1.1 16,512 3.1 66,756 12.6 6,150 1.2 #-Preliminary 2.0 1.8 11,379 7.492 10,491 2.5 11,762 2.1 10,693 TABLE NO. 21 10,907 9,699 7,692 8,179 9.377 WEST VIRGINIA M TONS % 61,671 61,671 14.8 59,832 14.2 66,787 14.8 71,254 14.9 71,708 17.0 89,971 15.8 72,787 17.5 80,488 19.1 107,900 19.1 2.2 101,663 21.0 12,800 2.5 122,381 23.5. 14,133 265 143,509 25.0 12,916 2.5 145,122 28,0 11,901 2.4 132,952 26.6 12,748 2.4 138,519 25.9 2.5 2.6 77,184 77,184 17.4 86,460 17.2 86,442 15.7 89,936 15,5 79,037 17.0 2.3 121,473 26.0 2.5 101,473 26.6 85,609 27.6 94,344 28.3 98,134 27.6 2.5 4,138 1.1 9,667 2.6 5,108 1.2 11,662 2.7 99,179 99,179 26.6 117,926 26.9 5,213 1.2 13,795 3.1 118,646 26.6 4,472 1.3 12,283 3.5 93,288 26.8 5,185 1.3 13,531 3.4 108,362 27.4 6,008 1.3 15,348 3.3 126,438 27.4 7,045 104 18,441 3.6 140,250 27.3 8,158 1.4 20,136 3.5 155,882 26.8 7,179 1.2 20,280 3.4 158,804 26.9 7,266 1.2 19,514 3.1 164,704 26.6 18,105 3.1 152,200 26.4 15,752 3.0 143,525 27.1 { Table No.21 ILLINOIS M TONS INDIANA M TONS OHIO PENNSYLVANIA %M TONS% M TONS ALL OTHER STATES M TONS % 62,055 14.9 417,111 30,760 7.4 144,561 7.4 144,561 35.6 60,505 14.9 405,907 34,529 7.7 161,865 36.0 64.841 14.4 450,105 36,201 7.6 173.781 7.6 173.781 36.3 65,430 13.7 478,435 18,843 4.5 147.983 4.5 147.983 35.0 60,061 14.2 422,704 1910 45,900 11.0 18,390 4.4 34,210 8.2 150,522 36.1 1911 53,679 13.2 14,201 3.5 1912 59,885 13.3 15.286 3.4 1913 61,619 12.9 17.166 3.6 1914 57,589 13.6 16,641 3.9 1935 1936 1937 1938 1939 1915 58,830 13.3 17,006 3.8 22.435 5.1 157.955 35.7 59,071 13.3 442,624. 1916 66,195 13.2 20,094 4.0 34,728 6.9 170,295 33.9 65,423 13.0 502,520 1917 86,199 15.6 26,539 4.8 40.749 7.4 172,448 7.4 172,448 31.3 75.257 13.6 551.791 89,291 15.4 30,679 5.3 45,813 7.9 178,551 30.8 78,197 13.5 579.386 60,863 13.1 20,912 4.5 35.877 7.7 150,758 32.4 1918 1919 58,300 12.5 465,860 1930 53,731 11.5 16,490 3.5 22,552 4.8 1931 44,303 11.6 14,295 3.7 20,411 5.3 1932 33,475 10.8 13,324 4.3 13,909 4.5 1933 37.413 11.2 13,761 4.1 19.589 5.9 1934 41,272 11.6 14,794 4.2 20,691 5.8 Page 2 1920 1922 1923 1924 88,725 15.6 29.351 5.2 45,878 8.1 170,608 30.0 74,108 13.0 568,667 1921 69,603 16.7 20,320 4.9 31,943 7.7 116,014 27.9 49,146 11.8 415,922 58,468 13.8 19,133 4.5 26,954 6.4 113,148 26.8 48,250 11.4 422,268 79,310 14.0 26,229 4.6 40,546 7.2 171,879 7.2 171,879 30.0 55,664 909 564565 68,323 14.1 21,480 4.4 30,473 6.3 130,634 6.3 130,634 27.0 51,587 10.7 483,687 1925 66,909 12.9 21,225 4.1 28,034 5.4 136,928 5.4 136,928 26.3 51,249 9.9 520,053 1926 69.367 12.1 23,186 4.0 27,872 4.9 153,042 26.7 52,544 9.2 573.367 1927 9.9 517,763 1928 3.1 131,202 3.1 131,202 26.2 51,630 10.3 500,745 1929 143.516 26.8 53,703 10.0 534,989 3.1 132,965 25.7 51,503 46,848 9.0 17,936 3.5 15,800 55,948 11.2 16,379 11.2 16,379 3.3 15,641 60,658 11.3 18,344 3.4 23,689 4.4 TOTAL U.S.A. M TONS 124,463 26,6 46,001 9.8 467.526 97.659 25.6 37.565 9.8 382,089 74,776 24.1 24.1 34,230 11.1 309,710 79,296 23.8 32,414 9.7 333,631 89,826 25.0 33,471 9.3 359.368 21,153 5.7 44,525 12.0 15.754 4.2 91,405 24.5 24.5 37,286 10.0 372,373 50,297 11.5 17,822 4.1 24,110 5.5 109,887 25.0 42.525 9.7 439,088 51,602 11.6 17.765 4.0 25,178 5.7 111,002 24,9 42,804 9.6 445.531 41,912 12.0 14,758 4.2 18,591 5.3 77,705 22.3 35,930 10.3 348,545 46.783 11.8 16,943 4.3 20,290 5.1 5.1 92,584 23.4 36,573 9.3 394,855 1940 50,610 11.0 18,869 4.1 22,772 4.9 116,603 24.3 39,659 1941 54,703 10.6 22,484 4.2 29.319 5.7 130,240 25.3 42,493 1942 65,071 11.2 25.388 4.3 32,764 5.6 144,073 24.7 49,689 1943 72,631 12.3 25.065 4.2 32,255 5.5 1944 76,792 12.4 27.962 4.5 33.877 5.5 8.6 460,772 8.3 514,149 8.5 582,693 141,050 23.9 52,542 8.9 590,177 146,052 23.6 53,301 8.6 619.576 1945# 72,525 12.6 25,500 4.4 32,715 5.7 131,650 22.9 50,093 1946# 63,767 12.1 22,000 4.2 30,086 5.7 121,375 23.0 42,926 EXPLANATION OF REFERENCE # - Preliminary AUTHORITY Yearbook. Department of Interior -Bureau of Mines Mineral 8.7 576,000 8.1 528,849 ܆ 54 Distribution of Bituminous Coal in Kentucky, Tennessee, Mississippi and Louisiana Table 22 shows the distribution of bituminous coal by principal consumers and origin districts in the States of Kentucky, Tennessee, Mississippi and Louisiana. (Figures do not include railroad fuel) Kentucky The power demands in Kentucky have increased substantially in recent years. Practically all heat and power is produced from bitu- minous coal mined in the Eastern and Western Kentucky coal fields. The distribution is principally to domestic users (retail yards), electric power plants, miscellaneous industries and by-product coke industry. G Truck competition is severe throughout the short haul territory from both the eastern and western Kentucky producing fields. Circuity of rail hauls to most of this territory prevents meeting this compe- tition. There are some truck competitive rail rates and consideration is being given the establishment of reduced rates to other points. There have not been, except in the domestic trade and small in- dustrial users, any substantial inroads by natural gas and oil. Hydro-electric power production is not an important factor as a competitor of coal in Kentucky. While the TVA program has reached into Kentucky, the amount of power furnished represents only a small portion of the total power produced. In several sections of Kentucky new steam-generating electric power plants are being constructed and several of the existing plants are expanding their facilities. Tennessee Tennessee, in recent years, has expanded industrially, particularly in the eastern and central sections of the state. Miscellaneous in- dustrial uses and the retail coal trade accounts for the preponder- ance of the tonnage. Coal from District #8 (Southern Appalachian High Volatile Groups) dominates the markets in the eastern half of the state and District #9 (Western Kentucky) the western half of the state. - Due to the proximity of the coal fields to a large area of the state,there is considerable competition from trucks, particularly in the domestic trade. There are a number of truck competitive rates in the eastern portion of Tennessee. Natural gas has all but taken over the Memphis industrial and domestic coal markets. Natural gas was recently brought into the Nashville area; however, the inroads have not as yet become apparent. Water and oil competition are not important factors in this state. Hydro-electric production, through the TVA program, has rapidly ex- panded. The demand for additional power by Tennessee industries has absorbed this hydro-electric power and no substantial inroads have → ta 1 + # KENTUCKY Industrial Retail By-Product Water Gas DISTRIBUTION OF BITUMINOUS COAL, IN NET TONS, IN THE STATES OF KENTUCKY, TENNESSEE, ISSISSIPPI AND LOUISIANA BY PRINCIPAL CONSUMERS AND ORIGIN DISTRICTS IN 1945 & Smithing Totals TENNESSEE Industrial Retail By-Product Smithing Totals MISSISSIPPI 520malaparta Industrial Retail Smithing Totals LOUISIANA Industrial Retail Smithing District ___#7__________ 缸 ​1,555 58,733 160,841 367 221,496 District #8 2,448,011 1,388,738 205,802 5,981 4,048,532 District #9 220,642 165,995 386,637 • 55 District # District 8 1,022,136 1,434,565 746,132 1,339,352 1,232,564 BONE HAND 3,202,833 2,391,330 District District #9 10 2,571,916 District #10 SEVEN JAČAN 8,955 23,965 S 32,920 District 13 District #9 1,676,446 714,884 HARJUTAS π/ 5,877 89,458 95,335 District #13 54,906 119,561 2,837 177,304 TABLE NO. 22 35,179 39,530 37,429 22,849 4,808 District #13 320,586 135,276 199,180 2,743 657,785 Authority: U.S.Dept. of Interior - Mineral Market Surveys TOTAL 2,715,224 2,210,545 906,581 581 5,833,323 TOTAL 4,132,023 2,846,743. 415,240 8,831 7,402,837 TOTAL Key Adap 284,503 311,680 2.867 599,050 DJ S TOTAL 88,403 73,318 4.922 166,643 MMS 1444. · • S - 56 occurred in the steam-generating plants. Mississippi and Louisiana Mississippi and Louisiana are largely agricultural states and, consequently, their power requirements are limited. In 1945, Mississippi consumed approximately 600,000 tons of coal and Louisiana approximate- ly 167,000 tons, practically all of which was shipped from western Kentucky and Alabama fields. The domestic trade and small industrial users equally accounted for the entire tonnage. The abundance of natural gas in these States, and oil, particularly in the Gulf coast region has practically forced coal from these markets. The future power demands will undoubtedly be met with these fuels. Alabama Alabama is an important bituminous coal producing state,ranking 7th in the nation in 1946. Table 21 shows the production for the years 1910-1946. Like Tennessee, Alabama production has not varied appreciably over the years, except the 1930 depression years. Alabama coals are largely used to supply the steel industry, rail- roads,electric power industry, industrial plants and domestic trade within the state. The result is that the railroads secure extremely short hauls. Railroad fuel has been for many years a large factor in Alabama production. The distribution of coal in Alabama by principal consumers and origin districts for the year 1945 follows: Industrial Retail By-Product Smithing TOTALS DISTRIBUTION OF COAL IN ALABAMA FOR YEAR 1945 (IN NET TONS (Authority District District District #7 #8 #9 26,407 17,083 169,867 85,783 67,425 128,831 - District #13 2,085,267 813,669 7,509,882 3,488 155,238 102,866 237,292 US Dept of Interior-Mineral Market Survey MMS 1444) TOTAL 2,301,006 973,785 7,638,713 3,488 10,916,992 10,412,306 The coal from District #7 was used almost entirely by the by- product coke industry for blending with Alabama coal. The movements from Districts 8 and 9 are primarily to northern Alabama points. Approximately 70% of the total coal consumed in Alabama was by the by-product coking industry. This clearly indicates the extent to which the Alabama Mining Industry is dependent upon the local steel industry. - 57 Competition of Alabama Coals Natural gas and oil have taken over most of the Southwestern and Gulf Coast markets which formerly used Alabama coal. The high cost of production of the Alabama coal field has also curtailed markets in Georgia and Tennessee. The future power requirements in the in- dustrial expansion of Mississippi and Louisiana and the Gulf Coast generally will unquestionably be met by the natural gas and oil industries. Truck competition in the Birmingham District on small industrial and domestic coal has been severe. The truck hauls are extremely short and truck competitive rates have had little success in control- ling the situation. Tidewater Movement Through the Gulf Ports Table 23 shows the movement through the ports of New Orleans, Mobile and Pensacola for years 1940-1945: TABLE 23 MOVEMENT OF TIDEWATER COAL THROUGH GULF PORTS FOR YEARS SHOWN (IN NET TONS Year 1940 1941 1942 1943 1944 1945 New Orleans 14,978 9,115 28,379 25,711 2,838 22,457 Pensacola 43,059 10,538 88,192 136,233 198,518 1,169,167 Mobile 64,465 57,439 136,916 112,676 132,063 605,525 * (Authority: US Engineers' District Offices) Prior to the war, the movement was almost entirely bunker coal from the Alabama producing district. The 1945 tonnage was shipped principally from Western Kentucky and Southern Illinois fields and was export coal moving on the governmental export program. This movement is/continuing through 1947; however, it is doubtful if it will be of long duration. 1 - 58. SECTION VIII COAL SOUTHWESTERN TERRITORY Coal is an important commodity to the southwestern carriers. It represents a very substantial tonnage and revenue of the lines serving this district, but the outlook of increasing the tonnage in the Southwest is not very bright. The production in the states of Missouri and Kansas is predominantly by strip operation. The strip acreage is fast becoming depleted and if additional acreage is not located it will be necessary to reestablish the slope and shaft mine production, which in this territory is very expensive and will result in increased cost of coal to the consumer. In the Arkansas mining territory the mines are principally slope in character. The vein is approximately 24 inches. Very few mines are equipped with mechanical cutting machines because the openings are so shallow it is not possible to operate either cutting or load- ing machines in these mines. Hence, the production cost is very high. This, together with the labor cost makes the domestic delivered cost of this coal to its natural consuming territory which is the Missouri River cities, points in Iowa, Nebraska, Minnesota and the Dakotas,in a great many cases in excess of the cost of coal elsewhere produced and of gas or oil. However, in the past year or two there have been a number of strip mines located in Arkansas, but the life of these mines is short for they soon run into heavy over-burden making it impossible to produce the coal by strip method. In Oklahoma there are strip,slope and shaft mines. The vein is thin and the high labor cost and inability to fully mechanize the mines results in the high cost of the product. Coals from Arkansas and Oklahoma are considered principally domestic coals, however, some of the slack is used for manufacturing of briquettes and for smelt- ing purposes. Generally speaking, the consuming area of the coals from Missouri and Kansas which are more or less of industrial character is the Missouri River cities, points in Kansas, Nebraska and Iowa. Dakotas. The coals from Arkansas and Oklahoma move to destinations in Arkansas,Oklahoma, Missouri,Kansas,Nebraska, Iowa, Minnesota and the The freight rate adjustments on coal in the Southwestern Territory are in practically all instances prescribed by the Inter- state Commerce Commission, the first case being the so-called "Missouri River Case", Dccket 14661. The Commission prescribed reasonable,maximum rates from the Rich Hill-Fittsburg, Kan, Arkansas- Oklahoma and the Spadra, Ark groups to Kansas City, Mo, St Joseph, Mo, Atchison, Kan, Leavenworth, Kan, Omaha, Neb, and Sioux City, Ia. In this case the Arkansas-Oklahoma group was the base group with dif- verentials prescribed Spadra group over the Arkansas-Oklahoma group and Pittsburg-Rich Hill group under the Arkansas-Oklahoma group. They also prescribed, in this case, destination differentials such as Leavenworth, Kan, 15 cents over Kansas City, St Joseph 30 cents and Omaha $1.00 over Kansas City, and Sioux City 50 cents over Omaha. gary - 59 The next important case was ICC Docket 22540, 173 ICC 605. In this case the Commission prescribed the base rate as the Arkansas- Oklahoma group, with differentials under from the Pittsburg, Kan-Rich Hill Group to destinations in the states of Iowa, Minnesota, Missouri and South Dakota. The next case of importance was ICC Docket 21993. The Commis- sion prescribed rates using Pittsburg, Kansas, as the base to a number of key points in Kansas and Nebraska, with the usual basis of dif- ferentials over the Pittsburg, Kan rate from the various Arkansas- Oklahoma groups. Certain boundaries defined the destination territory and the carriers were instructed to provide proper relations to the intermediate destination territory with due regard to the element of distance. SADO There were several other decisions by the Commission taking care of individual cases, such as the Lincoln, Neb,case where the Commis- sion prescribed the Omaha rates to be the maximum and again, in ICC Docket 18997, some readjustment was made in the rates to Topeka and Lawrence, Kansas. In another case specific rates were prescribed to Salina, Kansas. Hence, it will be noted that rates from the south- western mines to the territory to which the coal generally moves have been taken care of by the Interstate Commerce Commission orders. A few years ago, there was a considerable volume of coal moving by truck. and in order to meet this situation the southwestern car- riers established truck-compelled rates to meet the competition. The establishment of those rates resulted in the recapture of a large volume of the business, and the rates are still in effect. While it is true there is very little trucking of coal in this area, the rail- roads are reluctant to make any changes in these short-haul rates until it is definitely determined. conditions will not again arise that will cause the carriers to lose the business. gettin C Truck-compelled rates were established locally in Arkansas, Oklahoma, Missouri and Kansas, and it was necessary to obtain authority from the state railroad commissions in order to establish these rates There were also several instances where the rates were published from Kansas to Missouri and from Missouri to Kansas, which required the approval of the Interstate Commerce Commission and modification of their outstanding orders. The natural gas lines have long been established in the terri- tory which is the natural market of the southwestern coals and the loss of the coal business to this territory, due to natural gas, ha s about reached its peak. While additional gas lines are being estab- lished, it is apparent that due to inability to obtain additional oil and gas furnaces, it will be several years before any further,sericus inroads are made. It is believed that the use of domestic coals in this terri- tory, which has been on the down-grade for a number of years, will reach its leveling-off point just as soon as normal conditions are returned and readjustments are made in the wage scales and the cost of supplies. However, the use of industrial coals from the south- - G E. !!! I · 60 western district will increase. There are indications that utili- ties are seeking from fifteen to twenty per cent increase in their coal requirements. In regard to the matter of equipment, the retail coal dealers are generally equipping their yards with mechanical unloading and loading facilities and the day of hand-shoveling of coal from cars to trucks is obsolete. Therefore, the most suitable cars for the handling is the hopper type of car and to the extent of the dealer's requirements the 50 or 55-ton car is most suitable for his purpose, but,so far as industrial coal is concerned, 70-ton type of car is the most economical and the most satisfactory to the operators and the carriers. Generally speaking, the demands for flat-bottom, gondola cars from the ccal mines in the southwestern district represent about twenty-five per cent of the car supply. 1 · - 61 BITUMINOUS COAL ILLINOIS, INDIANA AND WESTERN KENTUCKY The importance of coal to the railroads serving the Illinois, Indiana, and West Kentucky fields is apparent when it is considered that the production of these fields represents 20% of the total United States bituminous coal production. Coal is the major tonnage of several of the railroads of the area. Year 1938 1939 1940 1941 1942 1943 1944 1945 1946 Both strip and underground mining methods are employed, and production is roughly 30% by stripping and 70% from underground operations. The resources of the varicus fields are estimated to run into the very distant future. Underlying the present producing seams are other seams, less profitably worked, but which will some day be exploited when the need arises. In addition, there are thousands of acres of virgin coal lands, much of which are controlled by existent producers. The se operators have long range policies insuring undim- inished production for decades, even centuries. Adequate railroad service already touches most of the potential production areas, as well as the current workings, A minimum of railroad construction will be required to serve future developments. SECTION IX Table 24 shows the production of Bituminous Coal in Illinois, Indiana and West Kentucky for the years 1938 thru 1946: Illinois 41,912,000 46,783,000 50,610,000 54,703,000 Table 24 Production of Bituminous Coal in Net Tons. Figures taken from reports of the Department of Interior, Bituminous Coal Division 65,071,000 72,631,000 76,791,000 72,525,000 62,554,000 Indiana 14,759,000 16,943,000 18,369,000 22,434,000 25,338,000 25,065,000 27,962,000 25,500,000 21,818,000 West Kentucky 7,368,000 8,291,000 8,795,000 11,580,000 13,431,000 15,169,000 19,465,000 19,840,000 18,916,000 The coals of these fields are for the most part being worked from relatively thick seams, and the inherent good quality of the product is further enhanced by growing number and effectiveness of preparation facilities. Both industrial and domestic markets offer a good and steady demand; railroad fuel and utilities account for the industrial consumption. A downward trend in domestic coals is noticed,although a converse situation exists in the industrial market. More efficient burning equipment, especially the domestic stoker has its effect on the domestic market and it is felt that the downward trend will not continue but will level off. Continued B • 62 ľ research in the uses of coal and a better advertising program in the industry, are beginning to have effect. The traffic flow of the production of this Illinois, Indiana, and West Kentucky producing territory is to the North,Middle West and South. Illinois and Indiana coals move principally North and West, while the Kentucky field markets about half South and half North and West. Jtilities of the major cities of the midwest, steam plants of industries, and railroad fuel needs are large volume con- sumers. Since the inauguration of Lake Cargo rates through the port of Chicago, additional markets for the coals from these producing regions have been opened and indications are this type of traffic will continue to grow. The rate structure of this region is largely the result of a series of relationships prescribed by the ICC, in which differenti- als between producing groups and key markets are maintained. A relationship between the other major production fields is also evident. Generally speaking, the measure of the rates in this region is lower than in other major areas of production. The midwestern field for rate making purposes is divided into 14 origin groups 8 in Illinois, 5 in Indiana and the Western Kentucky group. Generally speaking, these origin groups are all dif- ferentially related. With only a few exceptions, the rate adjustment has either been prescribed or approved by the Interstate Commerce Commission. 儡 ​Among the earlier cases affecting the territory are the Illinois coal cases of 1920, ICC Docket 10783 - 62 ICC 741, which set specific differentials between certain Illinois origin groups. minimum In Docket 23130-182 ICC 537 the commission prescribed rates to Chicago and other important Illinois destinations. Rates to the important consuming St.Lcuis-E.St.Louis District were before the Commission in 1914 and were again before that body in ICC Docket 18183-142 ICC 95. + To the Mississippi Valley Territory south of the Ohio River rates were prescribed in Docket 16506-109 ICC 740 and rates from the Western Kentucky and Scuthern Illinois groups were related to rates from the Alabama fields. M G To enable coal rine operators in Illinois, Indiana and Western Kentucky to compete with eastern coal to pcrts on Lake Michigan and Lake Superior, rates to Chicago for transshipment by lake were pub- lished in 1939. These rates were before the Commission in I&S 4534- 243 ICC 404. རྐ 1 - 63 S 4 The movement of coal by rail from Illinois and West Kentucky to Chicago for shipment by lake vessels to Canada and Lake Michigan and Lake Superior ports began in 1942. Since then, the following tonnage has been handled: Total Tons 1942 1943 1944 1945 1946 3,835 1,066,599 1,587,531 750,263 1,343,451 Present transfer facilities are located on the Belt Railway at 101st and the Calumet River. The traffic has been moving on a reduced lake-cargo base rate of $1.65 per ton from Southern Illincis and $1.90 per ton from Best Kentucky, 40% lower than established local rates. These rates were increased to $1.90 and $2.15, respective ly, January 1, 1947. Truck competition has had little effect on the rate structure in this territory, but reduced rates on fine coal to meet gas com- petition have been published to certain points in Iowa, Minnesota and Wisconsin. Trucking of coal is not at the present time a big factor, but it is likely to loom larger as changing conditions of motor equip- ment and supplies, labor and demand make trucking again feasible. During the depression years this haulage made appreciable inroads on railroad coal traffic. The proximity of volume consuming areas to producing localities stimulated itinerant trucking from all types of mines, but particularly from marginal producers. Natural gas competition has temporarily leveled off because of limited transmission facilities, but the demand for gas continues and additional distribution and consumption facilities will no doubt someday renew the upward trend. Electricity raises another competitive voice in the bidding for energy production and threatens both from the stand point of generating facilities in the coal market area, as well as technologi- cal improvements toward low cost long range transmission. The Tennessee Valley Authority is typical of a territorial hydroelectric project and has already begun to influence coal consumption adverse- ly. A Missouri Valley Authority would likely offer the same com- petition in another market area. While other currently developed, as well as potential, hydroelectric sites are more remote from the sales area of Illinois, Indiana, and West Kentucky coal, continued research on long range energy transmission should not be discounted as a future threat. Rail-water transportation of coal has attracted additional tonnages from all-rail routes, principally by barge on the Mississip- pi River and Illinois River. The Chicago utilities have shown a steady rise in the use of barge, until over 2,500,000 tons per year now are handled this way. To destinations on the Upper Mississippi River movement by barge amounts to about 600,000 tons annually% 64 - } Rates on rail-barge coal compared with all-rail coal run approximately 20% lower; in the case of contract carriers the spread is even greater. Because of the size of the barges, with consequent high minimum tonnages, most of the river traffic is to large utilities and industrial users, and to large retail yards favorably situated at river ports. There is not much inland hauling by rail from the destination ports. As to equipment, generally speaking, present types of cars in service meet the requirements of the shippers and receivers, however there is a definite trend toward the self-clearing hopper car. Retail dealers generally are using mechanical unloading devices as compared to the old fashioned hand unloading methods, and the 50-ton, 2-hopper, 4-door car is much in demand. Sixteen-door drop- bottom cars are suitable generally for the industrial trade, altho the trend here is also to the hopper car, and the larger 70-ton, 3-hopper, 6-door car can be utilized in this service. Tight, solid- bottom cars are required for transporting the finer grades of coal to large industrial users. The railroads should concentrate on the hopper car in their building program, at the same time maintaining in good mechanical condition the present drop and solid-bottom equipment. Paga . * • 65 EASTERN LAKE CARGO AND ALL-RAIL BITUMINOUS COAL TO NORTHWEST SECTION X In Table 25 are shown the tons of lake cargo bituminous coal received at west bank Lake Michigan ports during calendar years 1936 through 1945, separated as between the so-called Chicago District on the one hand and Wisconsin and Michigan ports on the other. Lake cargo coal received at the Chicago District ports is generally not transported beyond but is consumed at the ports. The bulk of tonnage going to Wisconsin and Michigan west bank ports is transported beyond generally by rail but a rather large volume is handled by barge to points on the Fox River. 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 TABLE 25 TONS OF LAKE CARGO BITUMINOUS COAL RECEIVED AT WEST BANK LAKE MICHIGAN PORTS DURING CALENDAR YEARS 1936 TO 1945, INCLUSIVE Chicago Dist. incl.Waukegan Illinois Wisconsin and Michigan 7,629,779 4,567,560 4,280,781 6,632,490 6,878,669 6,844,624 4,773,311 7,501,468 3,034,154 7,981,300 2,123,254 7,408,572 6,224,127 6,428,504 8,167,001 8,020,508 (Authority - Reports of US Army Engineers) Table 26 shows the receipts of lake cargo coal at the three main Lake Superior ports for the years 1936 through 1945. Much of this tonnage is moved by rail beyond the ports either as coal or coal briquettes. 7,177,774 7,151,282 Total- 5,731,451 6,339,554 14,807,553 11,718,842 10,012,232 12,972,044 13,723,293 12,274,779 11,015,454 9,531,826 14,391,128 14,449,012 Table 27 shows for the year 1945 the amount of bituminous coal consumed in so-called dock territory states. Table 28 shows for years 1933 through 1944 the natural gas con- sumed in Minnesota, South Dakota and Iowa and equivalent tons of coal displaced based on the average BTU value of lake cargo coal. The railroads serving Lake Superior docks have made substantial reduction in fine coal rates to destinations in Minnesota and South Dakota to meet natural gas competition. They have been successful to some ex- tent where industries were involved but have found it impossible to meet competition of natural gas where it is used for domestic heating, inasmuch as a domestic consumer is concerned more with the convenience and cleanliness of natural gas and not with the saving possible by burning coal. Corresponding reductions in fine coal rates have been made from the midwestern fields. There is very little hydro-electric energy in the dock territory states. D 66 1 TABLE 26 TOTAL RECEIPTS OF LAKE CARGO COAL AT DULUTH,SUPERIOR AND ASHLAND Bituminous Net Tons Total Net Tons Year 1936 1937 Note 1938 1939 1940 1941 1942 1943 1944 1945 Minnesota Anthracite Net Tons Lake Cargo All Rail TOTAL Wisconsin 315,428 307,297 172,129 194,056 137,690 252,924 221,673 313,544 595,140 802,289 Lake Cargo All Rail TOTAL Iowa North Dakota Lake Cargo All Rail TOTAL (Authority South Dakota Lake Cargo All Rail TOTAL TABLE 27 AMOUNT OF BITUMINOUS COAL EXCLUSIVE OF RAILROAD FUEL COAL) CONSUMED IN DOCK TERRITORY STATES DURING THE YEAR OF 1945 Lake Cargo All Rail TOTAL 10,057,047 9,936,066 8,653,540 (Authority - Reports of US Army Engineers) 9,681,186 9,690,637 6,759,502 6,644,074 7,359,141 8,855,602 8,802,643 9,996,614 9,997,934 6,931,631 6,838,130 7,496,831. 9,108,526 9,024,316 10,370,591 10,531,206 9,455,929 Net Tons 3,906,265 1,820,997 !! 5,727,262 8,831,253 4,107,993 12,939,246 208,934 1,725,912 1,934,846 348,775 591,309 940,084 106,392 7,139,092 7,245,484 Bureau of Mines-Mineral Market Report No 1444) All rail coal includes River and Ex-river movements. 67 TABLE 28 NATURAL GAS CONSUMED IN MINNESOTA, SOUTH DAKOTA AND IOWA AND EQUIVALENT TONS OF COAL 1933 1934 1935 1936 1937 -1938 1939 1940 1941 1942 1943 1944 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1933 1934 1935 1936 1937 1938 1939 1940 1941 Natural Gas Consumed Millions of Cubic Feet 3,547 7,125 10,579 11,918 13,111 14,641 17,262 19,904 22,672 29,116 33,501 35,229 11,408 16,636 19,077 20,918 Minnesota 3,264 3,901 4,656 } 5,061 5,519 5,354 5,712 6,454 6,580 7,611 · 7,483 7,688 21,354 20,109 21,732 23,460 24,589 29,481 28,687 27,307 South Dakota Equivalent In Tons of Coal Iowa 138,766 278,822 413,872 466,256 512,929 572,785 675,324 778,684 886,974 1,139,076 1,310,626 1,378,234 127,694 152,615 182,152 197,996 215,914 209,459 223,465 252,493 257,423 297,757 292,749 300,809 446,304 650,834 716,330 818,354 835,411 786,704 850,199 917,802 961,971 1942 1943 1944 Basis - Natural Gas 1025 BTU's per cubic foot Coal 13,100 BTU's per pound Authority Bureau of Mines Minerals Yearbooks 1,153,356 1,122,293 1,068,308 • 14 68 " Table 29 shows the fuel oil sales in dock territory states and equivalent tons of lake cargo coal that has been displaced or is used instead of coal. As in the instance of natural gas, fuel oil has not necessarily taken the place of dock coal. The table merely shows the additional coal which would be consumed if it were not for the fuel oil competition. Labor conditions at the Lake Michigan-Lake Superior docks have been ideal, and any effect on the movement of ex-leke coal has been through mine strikes in eastern districts or in lake vessels. The railroads serving Lake Michigan and Lake Superior docks have little motor truck competition, but they are concerned along with the dock operators about increasing water competition on midwestern coal moving via the Mississippi River. Table 30 shows receipts of ituminous coal by river at St Paul and Minneapolis for years 1935 through 1945, and it will be noted that there has been a very sub- stantial increase in volume since 1937. There was a drop during the years 1943, 1944 and 1945, but in these war years there was a shortage of barges, and it is expected that there will be a very substantial increase in the movement of midwestern coals by barge from now on. Year 1935 1936 1937 1938 1939 · 1940 1941 1942 1943 1944 1945 Receipts At St Paul Tons 3,795 0 4,494 38,734 23,571 156,171 209,652 246,377 147,076 TABLE 30 RECEIPTS OF BITUMINOUS COAL BY RIVER AT ST PAUL AND MINNEAPOLIS, MINN 氨 ​Receipts at Minneapolis Tons 47,232 31,830 39,179 92,140 129,404 206,060 287,382 424,661 Total Tons 51,027 31,830 43,663 130,874 152,975 362,231 497,034 671,038 268,763 432,683 441,514 121,687 222,145 210,538 285,712 155,802 (Authority - Reports of US Army Engineers) ! - 69 S Year 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 Fuel Oil Sales in thousands of bbls.of 42 gallons 2,697 2,796 FUEL OIL SALES IN DOCK TERRITORY STATES SHOWN AND EQUIVALENT TONS OF COAL 2,936 4,093 5,134 4,974 5,909 6,939 7,309 7,737 7,037 3,509 1,073 1,032 1,373 1,873 2,171 2,325 2,969 3,449 3,998 4,724 4,744 4,441 Minnesota TAYL Iowa South Dakota 294 353 474 536 599 777 891 891 909 904 860 844 TABLE 29 Equivalent Tons of Coal 617,633 640,305 683,817 937,328 1,187,175 1,159,084 1,353,206 1,589,084 1,673,816 1,771,832 1,611,526 803,588 67,328 80,340 108,550 122,748 137,175 177,939 204,046 204,046 208,168 207,023 196,916 189,466 245,725 236,336 315,573 429,931 497,176 532,443 679,921 789,848 915,574 1,081,334 1,036,414 1,017,023 · Fuel Oil Sales in thousands Equivalent of bbls.of Tons of Coal 42 gallons Wisconsin 2,017 2,415 2,992 4,022 4,823 4,743 5,793 6,885 7,344 7.497 7,239 6,792 461,903 553,053 635,191 921,068 1,104,504 1,087,328 1,326,641 1,576,717 1,681,832 1,716,870 1,657,786 1,555,420 North Dakota 133 199 269 294 375 442 594 647 677 703 643 536 41,908 45,572 61,603 67,329 85,878 101,221 136,031 148,168 155,038 160,993 147,252 134,198 Basis - 6,000,000 BTU's per barrel of oil - 13,100 BTU's per pound of coal. Authority: Bureau of Mines Yearbook : : : į N · 70 · In addition to the movement of Eastern Appalachian coals to the. Northeast via lake, there is also a significant tonnage shipped from the same Eastern producing area to that territory via all rail routes through Chicago and related gateways and via across Lake Michigan car ferry routes. This consists almost entirely of high grade domes- tic and special purpose coals sold on basis of quality and use rather than on price. Although in recent years there has been a marked de- cline in this traffic, due to availability of oil and gas and the better preparation of midwestern coals rendered competitive by the automatic domestic coal stokers, the movement in 1946, as reported by the Ohio Bureau of Coal Statistics, amounted to 2,747,435 net tons. Rates on dock coal from Lake Superior ports reflect a mileage scale adjustment prescribed in Docket 6194,etal, Holmes and Hallowell Co vs GNRy, et al,69 ICC 11,decided June 6,1922,subjected to the several general revisions since authorized by the Interstate Com- merce Commission and to a number of reductions in particular rates deemed necessary to meet various kinds of competition throughout the consuming area. Ex-dock coal rates from Wisconsin ports are the re- sult of the decision and order of the Public Utilities Commission of Wisconsin in Docket 2-R-633, In the Matter of the Investigation on Motion of the Commission of Intrastate Freight Rates Charged by Railroads for the Transportation of Coal and Coke within Wisconsin. Relationships between all-rail rates from Midwestern fields, and ex-dock coal rates were fixed in ICC Docket 14476, et al, North- western Coal Dock Operators Association vs C&ARR, et al, 89 ICC 170, decided May 6,1924. The rates from Eastern Appalachian coal producti ng districts to the Northwest via all-rail and across Lake Michigan car ferry routes constitute an extension or a projection of the all-rail adjustment to Central Freight Association Territory, and the origin differentials are, therefore, similar to those obtaining at Chicago or other gateway points. There are no established or recognized relationships between these rates on the one hand and the all-rail rates from Midwestern fields or the ex-dock coal rates on the other. Although the rate adjustment from the Eastern fields to the Northwest as a whole has never been before the Interstate Commerce Commission, there have been a number of decisions affecting particular parts of it and based upon them it can be said that the entire structure reflects a level which is well within the zone of reasonableness. The following are typical of cases involving the rates from the Eastern Districts to the Northwest: ∞ - 71 1 Docket 10741 I&S 1214 16826 Title 27458 Cedar Rapids Gas Co vs Dir Gen as Agent CRI&P I&S 1787,et al Cancellation of Coal from Ky, Tenn and Va to Northern and Northwestern Points Rates on Coal,CL, from Ky,Tenn and Va to Minnesota Points via CRI&PRy AARR, et al vs B&ORR et al Wisconsin Lumber- men's Assn,et al vs AARR, et al Citation and Date Decided 62 ICC 637 July 7,1921 60 ICC 166 Jan 26, 1921 89 ICC 573 May 13,1924 136 ICC 578 Dec 23,1927 227 ICC 423 May 17,1938 Scope Eastern Kentucky to Cedar Rapids, Iowa L&NRR origins in E Kentucky, Tenn and SW Va to Northwest L&N origins in E Ky, Tenn and SW Va to St Paul and Minneapolis, Minn and intermediate points Va,W Va and E Ky to Ia,Minn, S Dak,N Dak and Wisconsin via across Lake Michigan Car Ferry routes Va,W Va and E Ky to Southern Wisconsin : : ! 72 ... SECTION XI COAL IN THE FAR WESTERN REGION In attempting to analyze the coal situation in the western region as same affects the volume of railway traffic, the present and future influence of fuel oil and natural gas, as well as hydro- electric power must be taken into account. New Mexico N & S Dakota (lignite) The preliminary figures of bituminous and sub-bituminous coal and lignite production for the year 1946, as returned by the Bureau of Mines, is: State Colorado Montana Tons Mined 5,915,000 3,800,000 1,250,000 2,714,000 Total western region Total U.S.A. of total in western region State Utah Washington Wyoming Other States 23,484,000 532,000,000 Many 5.35 Tons Mined 5,990,000 990,000 7,805,000 20,000 The annual production of coal in the states shown above, which largely supply the western region, probably will not average in the next five years more than 28,000,000 tons, with a possible reduction from that figure. While the major portion of the nation's coal reserves is located in the western region, the fact remains that such are very largely of sub-bituminous grade with a not-too-high heat content and, due to excess of moisture,much of the western coals is unfit for storage. Neither are they adapted for export nor bunkerage purposes, so it can be generally said that western coals must be consumed in the west. The western region has recently developed furnaces and steel-making plants requiring a substantial tonnage of coking coal, a demand that will grow with the years. Unfortunately, however, the reserves of coal adapted to coke making are restricted to the states of Colorado, Utah, and Washington, the coking tonnage in Washington being quite limited. There is no coking coal of consequence in Wyoming and the tonnage remaining in Colorado and Utah is limited, Oil A very large proportion of the fuel oil consumed is used in locomotives and small power plants. The relatively low efficiency obtained by this form of usage represents a potential hazard, inasmuch as any broad attempt toward conservation would first be directed toward translating the heavier product into distillates for use in internal combustion engines, whero a higher rate of efficiency would be available. If this situation came to pass, a substantial return to coal would take place cuickly. There is a general feeling that } * - 73 1 if a world war again became imminent, the use of fuel oil for steam making would be prohibited after a reasonable time for changing equipment. The foremost weapon for either offense or defense in case of a major war will be air-borne craft,requiring either gaso- line or some other light fuel in large quantities. It should be borne in mind that a very large volume of western-produced fuel oil is now used in locomotives, and in the event of a sudden change-back to coal, the problem of supplying same to the railroads alone would represent a real task; as much of the oil now consumed in the east is being purchased overscas, the World War II question of ocean transport would undoubtedly again arise. The consumers of fuel and diesel oils in the western region are even now confronted with sharp increases in cost per million b.t.u. Natural Gas With respect to natural gas found in connection with oil,it can be said that where this type of fuel is found in large quantities and at high rock pressure, the drawing off of same will be restricted, thereby conserving the gas in order to obtain the maximum volume of the more valuable oil. It is only whero gas is obtained apart from reservoirs of oil that the total volume at rock pressure can marketed. Separate and apart from the present insufficiency of pipeline capacity, it is reasonable to assume that the supply of natural gas to be found in the western region has,like oil, definite limitations, and already many natural gas companies are withdrawing their product from industrial users in order to protect the higher revenue domestic consumer, who, in turn, is now in many places denied the privilege of making a new installation. O and Conclusion With the seven heavier coal producting states of the west mining but 5.35 percent of the nation's total tonnage of bituminous ccal and lignite, no attempt has herein been made to present the great detail covering the nation's production of soft coal contained in the comprehensive report made by Group 7, Mr R E Buffington, Chairman. The primary purpose of a railroad is to secure and move traffic at compensatory rates and the importance of the nation's bituminous coal production to the railroads is succinctly presented by Mr. Buffington in the following statement: "From the standpoint of revenue and of use for fuel, bituminous coal is one of the most important commodities to the railroads. In 1941 it provided nearly 743,000,000 of revenue, one-sixth of the total freight revenue of Class I railroads. Coal is by far the largest single revenue producer." Due to the relativoly greater distance between the mines and the market, the average revenue per ton is higher in the west than in the east. The permanence of coal supply is yet definitely greater than is that of its competitors, oil and natural gas. The uncertainty of a continuous supply of fuel coal occasioned by labor difficulties has diverted much of ccal's market to oil and gas where no labor problems have interfered with continuous delivery. On the other hand, 74 while oil and natural gas development entail heavy initial capital expenditures, the amount of labor cmployed is, when compared with coal,relatively small. When an oil or gas field is once developed and pipelines are finished, the amount of labor employed falls off sharply while in the case of coal, a continuous volume of traffic continues to move into the coal fields with resultant revenue to the railroads serving same. The value of outbound coal traffic has heretofore been touched upon. The coal industry, whatever its present complications are, yet represents the backbone of the railroads' and the nation's fuel supply, and every reasonable effort should be made in the west to maintain an adequate nucleus of mines and mining organization, which could be expanded in a reasonable time to prevent a real shortage of fuel,in the event a new war or a governmental mandate to con- serve oil reserves should appear. Again, as the coal demand varies sharply with the seasons, greater effort should be made in the west to more evenly balance the demand by the oncouragement of stocking of coal that will stand storage during the period of low consumption. Coal so moved and stored would tend to equalize both the mine and railroad transportation derand with substantial reductions in the cost of production at the mines and likewise promote the more efficient transportation cf coal to the point of consumption. Rates on Coal from Far Western Froducing Points LEPPOKANE VEĞİN (ZPETERS RUPTE ON YAMANTE The production of coal in the Far West began in Colorado and Wyoming in 1864 and 1865, and in Utah about 1870. The first produc- tion was scattered and but a few hundred tons per year. An annual production of 100,000 tons or more was first attained in Wyoming in 1871, in Colorado in 1876, and in Utah in 1882. The first mining operations of any consequence were at Rock Springs, yo in 1868, Walsenburg, Colo in 1373, and Kemmerer, Wyo in 1894. 1 Following the early production in the Rock Springs-Kemmerer and Walsenburg districts rates from those points became the key for rates from other Western origins with a result that there is now a related rate adjustment between the various origin districts. p The movement of coal from Western mines is entirely to points in the West. Many changes have been made in rates throughout the years as result of changed conditions, competition with other fuels such as oil, gas and hydro-electric power, and by the development of new coal-producing districts. The competition between the various coal producing districts, particularly, resulted in many formal complaints and investigation by the Interstate Commerce Commission on its own motion, and rates and relationships now in effect are generally on bases prescribed or approved by the Commission. The more important of these cases, and which affected substantially the entire Western production, are as follows: Western Coal Rates 80 ICC 383, 88 ICC 13, 89 ICC 666 Colorado and New Mexico Coal Operators Assn - 98 ICC 377 Utah Coal Operators Assn - 218 ICC 693 75 " In the above cases, there were considered various situations particularly such as competition: In the Pacific Northwest, from Utah, wyoming,Montana, Washington, and from Canadian coal. In Utah, California,Arizona and New Mexico, from Utah, Wyoming and Colorado. In Colorado and Wyoming, from origins in those states. .In Kansas, Nebraska and South Dakota, from Utah, Colorado and New Mexico. 1 EXHIBIT A COAL IN THE ECONOMIC LIFE OF THE UNITED STATES BY GEORGE A LAMB The importance of coal to the American economy has been proved. The point is more striking by reference to strikes in recent years which demonstrated that the economy becomes an increasingly feeble af- fair as the consumers coal supply dwindles. If the supply of coal were suddenly exhausted, the industrial and social structures of the country would fall apart. How does coal fit into the economy? Why is it so important? Coal is a large industry. It's mining is represented in 30 states which adds a nation-wide appearance to its accepted public interest. It furnishes a product in great volume over a half billion tons per year. Its extraction provides work for half a million employees, and its marketing and transportation provides far more than as many again. It has a large investment, something like two billion dollars for mining operations, assuming only $3 to $4 per ton of output. Marketing and transportation facilities would add even a larger sum to the investment item. These reasons, even if significant,do not measure the primary importance of coal. Instead, it is as a source of energy and of neces- sary products that coal deserves its greatness. Gaga A nation's importance can be gauged by the amount of energy it has available. Industrial operations can be no larger or living standards any higher than what energy supply permits. Take the sever- al leading nations of the recent 10 years and you will find they con- trol nearly all of the world's energy resources. Coal is the largest source of energy. In America today it sup- plies half of that essential. In comparison, petroleum provides one- third,natural gas one-eighth, hydro one-twenty fifth. But what is the application of coal energy that powers the economy? Coal is 87% of total railroad fuel, 80% of electric utility fuel (hydro excluded), over 50% of manufacturing and space heating fuel. A stoppage in coal supply would mean that most of the railroad traf- fic and much of the electric generation and manufacturing would halt. If it happened during cold weather, a large part of the civilian population would have to survive without heat as well as electric power, and gas to a lesser extent. W - Ging Coal also enters the picture as a means for essential commodi- ties. It is the provider of coke (also a fuel) and of many chemicals. Without coal, the steel industry would come to a standstill, and many products used in everyday life would disappear from the market. Thus, today, we view coal as an integral part of the economy. In the past, it was even more important. Thirty years back, coal supplied 85% of the country's energy. But after World War I,oil and natural gas began reaching for business along with capturing new kinds of consumption, and coals relative position declined steadily thereafter until it reached the 50% figure of today. This decline in the rela- tive position of coal's importance has been a cause for pessimism in the coal industry and only recently have there been developments which have changed the outlook. It appears now that coal is going to get off of its downhill coaster, take a look upward and step to new levels of importance. • ܝ Exhibit A-Page 2 Why the change? The American economy is going to need more and more energy. Coal has 98% of the fuel-energy reserves. It has been demonstrated physically that coal can be converted into the various energy forms that have served our needs. Therefore, in time, nearly all of the energy will originate with coal. The relative importance of coal can nearly double in the distant future as conditions are viewed today. The coming rise in coel's importance probably will be gradual like its declining trend. Petroleum reserves are figured to last 12 years at current rates of consumption, but could last 15 or 20. The natural gas reserves are said to have a life of 35 years but this figure is less supportable than the estimate for petroleum. At the same time, as depletion approaches, coal has an entrance from the cost angle as well as from reserve exhaustion. In other words, it looks as though coal can even now enter the oil and gas market on a modest scale and, if successful in techniques, could branch out in particular areas such as in the East, where distribution as well as proauction costs are of concern for oils from petroleum and for natural gas. Moreover, coal could very well supplement natural gas during periods of peak loads as the natural gas industry has no solu- tion for this seasonal problem. Coal apparently will experiment in select markets with its oil and gas, possibly et profitable levels, but not too many years hence, it or someone will have to start build- ing an immense plant. Its real growth in energy importance will start at that point. Another source of energy that can expand is the hydro plant. Most of the sites for hydro devlopment, however, are in the far west, removed from population and industry. Strangely enough, multiple- purpose hydro plants have a tendency towards economic expansion which requires energy from other sources. Thus, even if the hydro product could be brought into the main coal markets, it might mean a larger rather than smaller need for coal products. Hydro appears to be no threat to coal's rise. Suppose estimates on fuel reserves are approximately correct: 12 years for petroleum, 35 years for natural gas, 2500 years for coal (et 13,000 BTU); What would be the requirements for coal in the fut- ure,say in 1965 with business good. No one can give a satisfactory answer to this question, particu- larly because the exact sizes of petroleum and gas reserves are un- knowns. But some interesting speculation can result. Certain assump- tions can be made which will furnish one possibility of what the 1965 situation might be. In terms of coal, the country's present require- ments for energy total about 1.1 billion tons. It is safe to say these requirements would be 1.5 billion tons in the good business year of 1965. If reserves of all energies were plentiful in that future year, as today, and current pattern of consumption generally prevailed,requirements might be something as follows: ? w GRE Qua 4. Exhibit A-Page 3 1. Bituminous coal 2. Anthracite Petroleum 3. 4. 5. Natural gas Water power Undistributed 6. Total 580 60 485 225 60 90 1,500 Next, assume that for 1965 both coal and natural gas are plenti- ful but petroleum has been affected by depletions. Petroleum re- serves, of course, will not be exhausted after 12 years but will yield at a reduced rate, and will continue on a declining basis indefinitely. For the example, it will be assumed that they will meet about half of the refinery requirements in 1965. Coal and natural gas will have to furnish the rest of the oil, Anthracite because of its competitive position would have a smaller total market. The pattern for water- power would remain unchanged. Under these assumptions, requirements of the different energies might be as follows: TABLE 2 1. Bituminous coal Anthracite Petroleum Natural gas Water power Unäistributed Total 2. ю сто 3. 4. Millions of tons annually, coal equivalent 5. 6. Millions of tons annually, coal equivalent 765 40 250 300 60 85 1,500 S Changes in comparison with Table 1 185 20 235 + 75 LO 5 As a result of the conditions cited,coal's relative position has been bettered by 185 million tons, mainly to offset a substantial part of the petroleum shortage. Twenty-five million tons of coal are included to take care of natural gas scarcities resulting from distribution difficulty during peak periods. Natural gas with a consumption now equivalent to 160 million coal tons,would have a requirement of 300 million tons in 1965, some 75 million tons to be used directly to offset the petroleum shortage. Whether gas cen nearly double its present production in 1965 is problematical. Any number of 1965 energy patterns can be made up depending upon the assumptions used. The one described here has no more sup- port than some others. It is, I believe, on the conservative side as far as coal is concerned if the estimates on petroleum reserves ap- proximate actual conditions. Likewise, no special allowance has been made for atomic power which certain individuals claim will revolu- tionize the energy set-up during the next decade. Exhibit A-Page 4 While indications point to an increasing importance for coal in the economy, the next question follows: Where will the tonnage be obtained? A total of 765 million tons of bituminous and lower grades of coal if required in 1965 would be 23 percent larger than peak pro- duction as we now know it. Commercial gasification and liquidifica- tion plants, similar to the $120 million unit under consideration by Pittsburgh Consolidation would individually use 6 million tons year- ly, and would need a coal supply of 120 million tons for a 20 year life. If 160 million tons of coal were needed for oil in 1965, there would have to be 27 such plants,which in the aggregate would have to be asured of 3.2 billion tons. This is a lot of coal. Similarly, if it is advantageous for the plants to be located near centers of industry and population where the larger consumption of oil occurs, then the big demand will be for Appalachian coals. There are not many large coal deposits left in this area. The one bright feature on supply is that low grade coals can be used effec- tively in the processes, and there may be more tonnage of the now termed "non commercial" than realized which may prove suitable. Estimates on coal reserves take on an optimistic print. Pennsyl- vania, West Virginia, Ohio and Virginia, are listed with bituminous reserves of 320 billion tons. Deposits of this size would be quite adequate for years to come. But, these reserves include seams as thin as 14 inches and as deep as 3,000 feet, and a recovery of 70 percent. These estimates cannot be relied upon too heavily for considering future coal supplies. One thing is apparent. In the far west, there are tremendous reserves of sub-bituminous end lignite. Wyoming alone has about 600 billion tons of the former. As more coal is needed for oil in the distant future, great increases in western production will appear. Then comes the task of transporting gasoline and other oils across the country. Problems in production location as related to market multiply. Coal is basic to the American economy, and its importance will grow in the future. New opportunities and responsibilities appear almost daily. It will be used directly for heat and power and coke for a long time as it has been, but it must also take on new forms to satisfy deficiencies of other energy sources that will appear gradually. Not too many decades ahead, coal may represent almost our entire reserves of effective fuel energy. 哆 ​* ********* 裴 ​EXHIBIT B Excerpts from "SYNTHETIC GASOLINE" Published in the March, 1947, issue of "The Lamp", the publication of the Standard Oil Company of New Jersey *** Synthesis from natural gas has been brought to a point at which its gasoline is competitive with conventional gasoline from petroleum. On the basis of our present natural gas reserves and on the assump- tion that from 25 to 30 per cent of our reserves will be available for synthesis, it is now possible to foresee a time when natural gas may supply from 10 to 15 per cent of our total domestic demand for gasoline. Present estimates place our total domestic gasoline demand at 960 million barrels in 1950, 965 million in 1955, 997 million in 1960 and 1.014 billion in 1965. Our domestic proved reserves of natural gas were estimated by the American Gas Association on October 16,1946, at nearly 148 trillion cubic feet. Potential reserves are of course much greater. If, however, the whole of our proved reserves could be regarded as potential feed for synthesis plants, they might eventually yield 12 billion barrels of synthetic gasoline and Diesel fuel. This would compare with 10 billion barrels of conventional gasoline which we may expect from our domestic proved reserves of petroleum. But the whole of our domestic reserves of natural gas cannot be regarded as potential gasoline, for natural gas is used on a wide scale for heating. Furthermore, substantial amounts of natural gas are scattered in deposits too small to support synthesis plants. If we set aside out of our present gas reserves the proportion needed for fuel,plus the proportion not commercially available, we have left from 25 to 30 per cent which may safely be regarded as available for synthesis. This would amount to some 37 trillion cubic feet and would represent approximately 3 billion barrels of synthetic products. *** * Coal, however, is incomparably our greatest source of energy. All the coal that we have mined to date has hardly scratched the surface of the most easily accessible beds. So far the vast sub-bituminous and lignite deposits of the West have hardly been touched. Our coal reserves can be measured. Scattered through twenty- nine states, the entire range of commercial coal reserves from anthracite to lignite,i.e. the coal in workable seams above a depth of 3,000 feet, is estimated at 3.18 trillion tons. At present we are drawing on these enormous reserves at the rate of something over 600 million tons a year. We thus have enough coal in the ground to keep us supplied for thousands of years to come. If we assume 50 per cent of this to be available for synthesis, it represents a potential gasoline reserve of 3.7 trillion barrels. The highest estimate of future domestic consumption which has so far been made, that for 1965, is slightly over a billion barrels of gasoline a year. At this rate, the available half of our total coal reserves can keep us supplied with gasoline for more than 3000 years to come. * Exhibit B-Page 2 Generally, the process in its present stage of development uses coal with somewhat less efficiency than natural gas, but research is continuing along promising lines. For the highly competitive American market, synthesis from coal is not at present attractive commercially. But it will become more competitive as research into it continues. Eventually it will make commercially available a potential reserve of synthetic gasoline so overwhelming in volume as to dwarf all our other sources. **** ++ + EXHIBIT C DISTRIBUTION OF BITUMINOUS COAL AND LIGNITE PRODUCED DURING YEAR 1945, EXCLUDING RAILROAD FUEL REGION AND STATE INDUSTRIAL NEW ENGLAND Connecticut All-Rail, River and Ex-River Tidewater Total Maine All-Rail, River and Ex-River Tidewater To tal Massachusetts All-Rail, River and Ex-River Tidewater Total New Hampshire All-Rail, River and Ex-River Tidewater Total Rhode Island All-Rail, River and Ex-River Tidewater Total Vermont All-Rail, River and Ex-River Tidewater Total MIDDLE ATLANTIC New Jersey All-Rail, River and Ex-River Tidewater (In Net Tons of 2,000 Pounds) Total 738,403 1,820,472 2,558,875 117,890 876,575 994,465 1,838,237 2,866,671 4,704,908 239,914 239,024 478,938 86,006 296,395 382,401 225,054 28,349 253,403 1,119,057 3,144,962 7,264,019 RETAIL YARDS 297,580 494,802 792,382 78,574 358,804 437,378 813,192 1,812,382 2,625,574 124,004 134,107 258,111 61,504 730,507 792,011 72,479 444 72,923 785,738 1,181 786,919 BY-PRODUCT AND WATER GAS 558 21,214 646,592 667,806 558 1,679 997 5,991 292 7,670 1,289 USE NOT SMITHING REPORTED 1,291 199 1,490 __375,196 375,196 89,727 1,769,609 3,934 95,617 1,859,336 3.934 95,617 94 94 3,459 298 3.459 298 2,528 34,806 1,545,355 1,580,161 2,528 159 1,057,914 2,961,866 4,019,780 159 1 1 1 1 1 1 I II TOTAL IF I 141 18,095 165,746 1,402,098 141 18,095 1,567,844 199,140 1,241,662 1,440,802 2,840,707 6,448,662 9,289,369 365,303 373,330 738,633 301,290 28,793 330,083 4,942,129 4,691,498 9,633,627 . 1 Exhibit C-Page 2 REGION AND STATE Pennsylvania All-Rail, etc. Great Lakes Tidewater Total New York All-Rail, River and Ex-River Great Lakes Tidewater Total EAST NORTH CENTRAL Illinois All-Rail, River and Ex-River Great Lakes Total Indiana All-Rail, River and Ex-River Great Lakes Total Michigan All-Rail, River and Ex-River Great Lakes Total Ohio All-Rail, River and Ex-River Great Lakes Total Wisconsin All-Rail, River and Ex-River Great Lakes Total WEST NORTH CENTRAL Iowa All-Rail, River and Ex-River Great Lakes Total Kansas All-Rail, River and Ex River INDUSTRIAL 15,445,154 2,058,223 17,503,377 9,505,655 1,277,589 6,570,125 17,353,369 RETAIL YARDS 2,662,431 27,808,289 10,476 222,571 475.447 2,662,431 28,506,307 10,476 1,576,593 4,156,918 36,113 1,887,590 1,623,414 20,892,090 14,672,658 77,480 93,101 20,969,570 14,765.759 2,969,738 801 2,970,539 1,176,247 2,788,953 10,378,939 6,479,632 10,378.939 6.479,632 1,043,846 6,321,522 7,674,150 7,156,158 1,279,458 13,477,680 8,953,608 2,672,686 3,385,856 6,058,542 5,115,196 BY-PRODUCT AND USE NOT WATER GAS SMITHING REPORTED 4,119,201 105,587 4,224,788 1,042,177 4,733 7,667,922 4,733 2,652,030 10,176 1,749,087 46 4,401,117 10,222 5,538,375 3,313 4,355,160 9.893.535 3.313 1,384,005 49,404 3,731,191 1,713,825 446,493 2,806 3,098,531 1,771 3,545,024 4,577 1,898 381 1,763,229 2,279 47,552 2,601 4 47,552 2,605 1,515 ! ! ! ! 1 1 1 1 [![ 20,742,582 11,450,480 11,840,027 9,126 172,821 44,215,036 714 447,292 448,006 20,742,582 11,451,194 12,287,319 9,126 172,821 44,663,042 ! ! ! ! ! ! 1 1 1 !!! TOTAL 1 45,926,350 222,571 2,533,670 48,682,591 15,243,899 3,201,292 9,369,786 27,814,977 38,226,954 1,919,714 40,146,668 22,400,259 4,355,160 26,755,419 14,444,971 11,535,918 25,980,889 4,107,993 8,831,253 12,939,246 7,139,092 106,392 7,245,484 2,087,538 Exhibit C-Page 3 REGION AND STATE INDUSTRIAL Minnesota All-Rail, River and Ex-River Great Lakes Total Missouri All-Rail, River and Ex-River Nebraska All-Rail, River and Ex-River Great Lakes Total North Dakota All-Rail, River and Ex-River Great Lakes Total South Dakota All-Rail, River and Ex-River Great Lakes Total SOUTH ATLANTIC Delaware All-Rail, River and Ex-River Tidewater Total District of Columbia All-Rail, River and Ex-River Florida All-Rail, River and Ex-River Georgia All-Rail, River and Ex-River 1,209,691 605,549 2,119,154 1,337,977 2,547,668 2,724,703 3,179,203 775,552 37,102 812,654 725,877 1,389,129 725,877 8,311 1,397,440 RETAIL YARDS 322,361 135 322,496 1,267,953 4,342,280 306,551 282,689 14,317 334,419 320,868 617,108 1,597,254 949,810 171,750 1,121,560 46,130 46,130 548,088 296,709 101,430 1,497,234 BY-PRODUCT AND USE NOT WATER GAS SMITHING REPORTED I 5,757 446,812 2,322 446,812 8,079 346,225 8,157 ! ! ! ! ! ! 1,295 1.295 1,384 1,384 6,057 16,727 1,265 1,255 550 82 632 774 39 813 1 1 1 1 19,617 1,509 2,127 III 1 ! ! ! 11 1 It! 11 1 1 1 1 TOTAL 1,820,997 3,906,265 5,727,262 7,875,865 2,116,271 8,311 2,124,582 1,725,912 208,934 1,934,846 591,309 348,775 940,084 369,875 135 370,010 1,822,098 419,265 3,113,342 ! Exhibit C-Page 4 ་ " REGION AND STATE Maryland All-Rail, River and Ex-River Tidewater Total North Carolina All-Rail, River and Ex-River Tidewater Total South Carolina All-Rail, River and Ex-River Tidewater Total Virginia All-Rail, River and Ex-River Tidewater Total West Virginia All-Rail, River and Ex-River EAST SOUTH CENTRAL Alabama All-Rail, River and Ex-River Kentucky All-Rail, River and Ex-River Mississippi All-Rail, River and Ex-River Tennessee All-Rail, River and Ex-River WEST SOUTH CENTRAL Arkansas All-Rail, River and Ex-River INDUSTRIAL 2,405,647 1,002,144 3,407,791 3,649,061 3,649,061 1,979,427 451 1,979,878 5,284,581 2,301,006 2,715,224 284,503 1 5,978,921 19,925 2,272,675 5,998,846 2,272,675 RETAIL YARDS ! 2,119,356 318 2,119,674 784,480 1,577,721 1,629 83.462 784,480 1,661,183 1,629 861,365 861,365 242,195 2,210,545 311,680 4,132,023 2,846,743 BY-PRODUCT AND USE NOT WATER GAS SMITHING REPORTED 183,747 268,836 973,785 7,638,713 103,617 1,721 103,617 1,721 48,637 420 48,637 420 410,229 1,503 410,229 1,503 4,046,451 1,396 1 906,973 581 3,488 1 2,867 415,240 8,831 2,005 ! ! ! ! 1 1 ! ! ! ''' { 1 1 } } } TOTAL 4,769,477 1,085,606 5,855,083 5,873.755 318 5,874,073 2,889,849 451 2,890,300 8,663,328 19,925 $,683,253 9,574,623 10,916,992 5,833,323 599,050 7,402,837 454,588 感 ​. Exhibit C-Page 5 4 : REGION AND STATE INDUSTRIAL Louisiana All-Rail, River and Ex-River Okalahoma All-Rail, River and Ex-River Texas All-Rail, River and Ex-River MOUNTAIN Arizona All-Rail, River and Ex-River Colorado All-Rail, River and Ex-River Idaho All-Rail, River and Ex-River Montana All-Rail, River and Ex-River Nevada All-Rail, River and Ex-River New Mexico All-River, River and Ex-River Utah All-Rail, River and Ex-River Wyoming All-Rail, River and Ex-River 88,403 567,80.7. 210,944 37,530 1,113,940 286,433 179,800 155,184 91,140 652,072 247,687 RETAIL YARDS 73,318 203,264 32,873 121,427 189,943 779,676 295,631 69,359 1,217,901 1,241,849 128,666 696,212 BY-PRODUCT · AND USE NOT WATER GAS SMITHING REPORTED I 167,717 1 1 I 1 1 I 1 4,922 307 6,524 291 1,141 293 478 849 662 1,232,546 179 43 1 1 1 婆 ​1 1 1 I I 1 I TOTAL 166,643 771,378 528,838 70,694 3,574,831 1,066,402 475,909 225,392 220,468 2,581,009 415,447 Exhibit C-Page 6 REGION AND STATE INDUSTRIAL PACIFIC California All-Rail, River and Ex-River Oregon All-Rail, River and Ex-River Washington All-Rail, River and Ex-River Tidewater Total Unknown State All-Rail, River and Ex-River UNITED STATES All-Rail, River and Ex-River Great Lakes Tidewater Total CANADA All-Rail, River and Ex-River Great Lakes Tidewater Total 308,529 156,942 1,105,361 759 1,106,120 91,695 RETAIL YARDS 1,171,870 2,605,472 3,777,342 228,117 269,042 1,163,421 1,163,421 23,658 BY-PRODUCT AND USE NOT WATER GAS SMITHING REPORTED 402,454 4,569 I : 1,505 20,204 2,640 20,204 2,640 1 702,178 39,264 21,064 13,435 2,883,116 1 AUTHORITY U.S. Department of the Interior, Mineral Industry Surveys, Mineral Market Report M.M. S. No. 1444 of August 1946. TOTAL } 943,669 6,052 2,297,678 759 6,052. 2,298,437 427,489 141,225,531 81,418,566 71,317,259 124,177 292,744 294,378,277 13,287,280 7,879,798 13,920,868 4,645 35,092,591 30,159,998 18,924,210 4,710,231 6,525,265 292 173,437,021 94,008,595 91,763,392 129,114 292,744 359,630,866 115,353 1,934,376 6 5,943,038 11,445,067 219,591 219,591 715,613 2,922,380 21,070 6,162,629 13,599,034 • 1. A UNIVERSITY OF MICHIGAN 3 9015 02112 8924 DATE DUE JAN NOV 20 1977 3 1962 ...... www i A 24