Coal In 1951

MANY trends were evident in the coal industry during 1951. Some were favorable for the industry; others were not. Probably those having the most far-reaching consequences are those affecting coal's markets. The rapid dieselization of many railroads and the continued trend toward oil and natural gas for home heating has caused serious dislocations in various mining districts. Mines have been forced to close down or to work on a reduced time basis. Conversely the increased activity in the metallurgical industries has increased the demand for coking and special purpose coals, and the growing production of electric energy has increased the demand in certain areas for steam coals. The increased demand for metallurgical coal and for steam raising by the large utilities is more than equal tonnage-wise to the loss of coal to railroad dieselization and conversions to oil and gas in the domestic market. Since much of the expansion is at captive mines of large corporations, many commercial operators supplying railroad and domestic users have had their markets curtailed without any compensating demand from other sources. Feverish activity was in evidence in many areas by commercial operators attempting to find new markets. The Norfolk and Western Railway is the, only major American railroad committed to the burning of coal. It has an exceptionally good cost record. During 1951, fifteen additional modern coal-burning steam switching locomotives were authorized for construction in the company's Roanoke shops at a cost of about $1,450,000. When the new order is completed the road will own a total of sixty locomotives of the modern-switcher type, including thirty acquired by purchase last year. The Norfolk and Western today is the only American railroad building its own motive power. All of these locomotives burn coal. Production Coal production in the year 1951 will approximate 570 million tons of anthracite, bituminous coal, and lignite. Of this, approximately 7 pet is anthracite. Total production is approximately 30 million tons more than in 1950 and reflects the increase in general industrial activity. Exports are expected to be close to 50 million tons. The industrial stockpile is close to 75 million tons, the highest it has been since 1943. With the exception of the usual local stoppages the year 1951 was unmarked by labor disputes. It was a year of good labor-management relations with a negotiated wage increase unmarred by a work stoppage. This may be the beginning. of an era of sensible negotiations to find agreeable settlements of disputes without the usual protracted bickering and industry-wide strike. The United Mine Workers of America has condemned wildcat strikes, stating that in nearly every, instance proper grievance procedures have not been instituted. Government defense organizations, perhaps profiting by their experiences during World War II, are pursuing a more enlightened program with regard to the fuel requirements of the nation. Many prominent officials have stated that wherever possible coal should be considered the primary source of fuel in all defense expansion. With the increased consumption of steel by defense projects, approval of transportation facilities for liquid and gaseous fuels have been refused where these fuels would enter a coal producing area. Liquid and gaseous fuel producers also have failed to provide satisfactory evidence that they have sufficient reserves and are capable of supplying their product in adequate amounts for the periods of time required. Realization has at last become prevalent that the hydro-electric power installations in several areas are insufficient to handle increased demands.' Steam generating plants are being constructed in these areas and equipped to burn coal. Most notable of these, is the TWA area whose supplemental steam power plants are expected to consume 10 million tons of coal per year when completed. The Pacific Northwest is another area which is expected to follow the same pattern. Nearly all new steam-power generating plants are being equipped to burn coal either as a primary fuel or as an emergency measure. Metallurgical Coal The steel and other metallurgical industries are expanding rapidly to meet increased industrial demands and defense orders. Since these industries are dependent on coke, coke has had a year of high production and can be expected to break all existing records when steel-plant expansions are completed. Most notable of the expansion projects is that of the Delaware River area where the iron ore will be received by ship from Canada and South America. U. S. Steel is only one of several steel corporations that are planning on putting integrated steel producing units in this area. The Defense Solids Fuels Administration announced in December that through. November 30, 1951. 29 projects in eight states, with a total cost of