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18 MARINE REVIEW. [February 97, -- AMERICAN COAL IN EUROPE. BY A M. THACKARA, CONSUL AT HAVRE. The most important factor in the creation of a permanent export trade in American coal is the solution of the question of cheap ocean transportation. With the unusually low ocean freight rates between American and European ports now prevailing, which can only be con- sidered as temporary, importations of American coal into portions of France are possible. To secure permanent foreign outlets for the pro- ducts of our coal mines, it remains for American ingenuity, backed by American capital, to devise some means by which coal can be carried at all times to European ports at rates low enough to permit the American exporter to offer his product at prices which will enable him to compete with British coal. It is my opinion that if regular lines of steamers, built upon up-to-date economic principles, especially for carrying large cargoes of coal and fitted with modern labor-saving appliances, with fixed sailing dates, were established between our coal-shipping ports and certain ports of France, enough return freight could be secured to reduce the cost of coal 'transportation to a minimum. At present, Marseilles is the port in France where the conditions are the most advantageous for the sale of American coal, owing to the comparatively high freight rates from British coal-shipping ports. During 1899 and 1900, in consequence of the high prices of British coal, contracts were secured by American exporters, which, for the most part, have been filled. The American combustible has gained a foothold in the southern European market, and it remains for our exporters to make it a permanent one. The importations of coal into France from the United.States are not large, as compared with the total American coal exports; but the statistics indicate that for the past three years the receipts of American coal in this country are increasing. For the twelve months ended June 30, 1901, the coal exports from the United States to France were 208,941 tons, against 55,317 tons and_1,011 tons, respectively, during the same periods of 1900 and 1899. The British consul-general at Marseilles, in a recent report to his government upon | ' "American vs. British Coal in the Mediterranean," says, in part: "T hold, therefore, that for the present American competition in coal is not a very serious matter. But now let us look a little farther ahead and consider what must inevitably happen if Americans succeed in passing their shipping-bounty bill. With 2s. 6d. (60 cents) per ton in their favor, and with high prices ruling at home, American competition will be a very serious matter indeed. American coals now offered at 1s. 6d. (86 cents) per ton below competing qualities of British are, in the opinion of Amer- icans, quite able to stand a further reduction, if this is necessary to meet any further fall in British prices. They do not believe that prices in Great Britain will ever come down below American output prices; but if they do, the American shipping-bounty bill will by that time have enabled them to become masters of the situation. With the passage of the bill the very thorough preparations that have been made for the past two years by the Baltimore & Ohio and other leading companies in the United States, with a view of ultimately monopolizing the Mediterranean coal trade, will lave matured sufficiently to permit of their starting operations on a large scale." The new French shipping-subsidy act, which has lately passed the chamber of deputies and which is to be considered shortly by the senate, will, in the near future, become a law, probably without any material change by thé latter body. This bill greatly favors the construction of steamers in France up to and including 7,000 tons gross measurement, by granting, with certain exceptions, a navigation bounty (prime de navigation) of 1.70 francs (82.8 cents) per gross ton per 1,000 miles sailed to steamers measuring over 100 tons gross and up to 3,000 tons gross, and a bounty of not less than 1.50 francs (28.95 cents) to steamers of over 3,000 tons gross and up to and including 7,000 tons gross for the first year after registration, with a gradual annual decrease for fifteen years. From this bounty there is deducted a sum equal to 11 per cent., 5 per cent. of which is divided among the crews of the steamers and 6 per cent. is reserved by the various sailors' pension funds. The minimum bounty for are over 7,000 tons gross for the first year is 75 centimes (14.475 cents). ae An example showing the benefits which a French-built steamer of 7,000 tons gross (not belonging to a regular subsidized mail line) engaged in carrying coal or other merchandise between New York and Havre, for instance, would derive from the new act will be of interest. The official distance between Havre and New York upon which the subsidy would be based is 3,171 miles; 7,000 tons at 1.50 francs per ton per 1,000 miles equals 10,500 francs ($2,026.50); distance between Havre and New York and return, 6,342 miles; 10,500 multiplied by 6,342 equals 66,591 francs ($12,852); deduct 11 per cent., 7,325 francs ($1,414); net bounty for the first year, 59,266 francs ($11,488). Tf the steamer left Havre without any cargo and returned from New York with 9,000 tons of coal, the bounty received by the owners of the vessel the first year would be equal to $1.27 per ton of coal. The annual decrease in the bounty to steamers, commencing with the date of registration of the vessel, is 4 centimes (.772 cent) for the first period of five years; 8 centimes (1.544 cents) for the second period of five years; and 16 centimes (3.088 cents) during the third and last period of five years. In other words, the average bounty to steamers of from 3,000 to 7,000 tons for the first five years would be 1.42 francs (27.4 cents); the average bounty for the second period of five years, 1.10 francs (21.25 cents); and for the third and last period, 43 centimes (8.29 cents). With this assistance from. the government, owners of French-built steamers will be in a position to enter into contracts with American coal shippers to transport coal to France and other countries at low rates. French capitalists are studying the question whether American coal carried on subsidized French steamers, could not be delivered in France and other European countries at such prices as would enable it to enter into successful competition with British and other coal. With this end in view, one syndicate has already sent a representative to the United States to confer with colliery proprietors, coal shippers, and others ee : on . rie ve : The British foreign coal trade is well established, and it will be onl LV 14. rf ' 2 : ae ' by intelligent and systematic effort on the part' of Ameftican coal milers oal can expect to compete with British coal in the European markets. Cheap. ocean transportation having been secured, selling arrangements should be made by which business will be transacted direct with the importer, oF American coal firms should haye reliable agents to represent them, instead of doing business through three or four different persons. American shippers are sometimes represented by English houses which have no business relations with France, and have to depend upon other English houses which have. Asa consequence, coal which sells at Philadelphia at $2.50 per ton Is offered to French con- sumers at from 50 to 75 cents more, as the English middlemen 'must, have their profits. Competition is so keen that American coal should not have to bear any increased expense from commissions paid to middlemen. Depots filled with modern labor-saving apparatus should be estab- lished at convenient points where coal can be discharged from vessels, stored, loaded on cars, etc., at the lowest cost. From these depots orders for less than cargo lots could be filled. : American exporters should study the requirements and the customs of foreign trade and conform to them. They must not expect to sell coal for cash or demand payment before the coal leaves the United States, They should make regular deliveries of the quality of coal ordered. The two cargoes of anthracite coal recently sent to Rouen, which excited such interest among the coal dealers in Paris and elsewhere, turned out so badly that the trade in American anthracite in northern France, which looked so promising, has received a setback which will require a long time and hard work to overcome. and shippers that American ¢ The following are the prices of British coal which ruled in December, 1901--and which have not changed materially since--f. o. b. shipping ports, with the export tax of Is. (24:3 cents) included, 2.5 per cent. dis- count for payment in thirty days' time: Best Newcastle: Description. 9 4 en ° ® Si dy S: d. Colliery screened .......-0ee secretes 13: 0 $3.16 @inall (oes ie a eee ee 6 0 1.46 Best Durham gas coal .....-..+-ee reer 13-0 8.98 Best Cardiff: Colliery screened ...-..-.-.250ee+e 1p. 0 to 7G $4.01 to 4.25 Sal a 10 70 to 12 0 2.43 to 2.92 Best Newport: Colliery. screened .........-2.-505+55 15. 0 to-16- 9 3.65 to 3.89 Sit ee a ee: 9 940 2-65 287 to Joe Best Scotch, colliery screened............ 2 4 2.99 Swansea anthracite: Colliery screened, large ...........--- 20 0 4.87 Nig eae 2 4 6,57 The freight rates from British shipping ports at present are as follows to the places named: FROM THE TYNE. Hambure 22 $0.97 DCE vie 1.39 St Nazaire... 7.0 57. 8 Carthaceta... 52... 1.17 Rouen 2). 6 1.2% Mexandria 32.0.2 13 Havre yee. Pee 1.00 Bombay 2235. .0 2.43 GrenGa oe ee. LDF Barcelona: 22.5 ieee 1.58 BilbaG@e 3. es. 79 ' FROM CARDIFF AND NEWPORT, Malltat 4) ce $0.97 Bordeaux i. .:5.....55. 3 1.16 Genoa 2533 ee: 1.30 St. Nazaire ...:..35 92 Alexandtia... 2... ley Marseilles... 1.00.5 205 1.30 Port Said ees: 1.21 Rochefort 2: 4.42.8 1.06 La Rochelle. 235... 1.11 Gibraltar ~... 23. 1.20 Weiice (oe 1.64 Barbados 2.2. cee 1.55 leas: Palmas =).5. 42. .2.. 1.46 Havre 6c. 2 ae 1.03 Rouen... - 3.65 3s oe 1.2% FROM SCOTCH PORTS. Borgen dae. s+ vn $0.9614 Arieste 66) [50.04 1.58 PUUINOS OO Co ecek cs 1.58 Tiaimpure 1.15 Cena. ote 1.30 Plavre oo oe 1.03 KWielo (6.5257 oe 1.45 Amierican soft coal is quoted by a large importer at from $4.38 to" $5.35 per ton f. 0. b. at French Channel ports, according to quality, and at from $4.50 to $5.47 at Mediterranean ports; the freight from American shipping ports being from $2 to $2.19. _American anthracite, nut size, is quoted f. 0. b. Havre at 28s. ($6.81), while the price of Swansea anthracite, nut coal, is 3ls. ($7.54). Some French dealers in British anthracite import their coal in large colliery sizes (screened), and with their own machinery break it up and sort it into sizes suitable for their customers. They find it more satisfactory and more economical to prepare the coal themselves than to pay the extra price charged by the Swansea colliery owners for nut sizes. There are three sizes of anthracite nut coal known to the French coal trade: German size, 034 in. to 134 in.; Paris size, 034 in. to 2% in.; and French size, 134 in. to 2% in. The president of the Western railway of France informs me that the coal most desired by his company for use in their locomotives should contain from 18 to 20 per cent. of volatile matters, with an ash result of from 6 to 7 per cent.; that the quantities of coal contracted for vary and depend greatly upon the price. When the coal is imported by sea, the contracts are made so that full steamer cargoes may be delivered. Deliv- eries are generally made between Jan. 1 and Aug. 31. Permanent foreign trade in American coal will depend upon: _() The establishment of lines of steamers with regular sailing dates. built for carrying large coal cargoes, fitted with up-to-date appliances, an capable of being run under the most economical conditions. (2) The erection of coal depots fitted with modern labor-saving apparatus for discharging and handling coal. _ (8) The creation of a complete organization for selling coal and doing away with all middlemen. (4) The observance of the commercial customs- of the foreign country. Fy ~ (5) The carrying out of the letter and spirit of all contracts.