might be considerable. I do not know what the production of the Polish mines is. I don't know whether they know. Mr. POTTER. Another observation: Can you visualize, if an exception should be made to allow the coal to be excluded from the 50percent provision, that other groups will come in and ask for the same exceptions? Mr. BUCKLEY. I don't know, sir. Mr. POTTER. That is all. Mr. THOMPSON. Mr. Buckley, is this coal for the ECA bought f. o. b. the United States, or f. o. b. Europe? Mr. BUCKLEY. Practically all the coal for the European recovery program is bought f. o. b. piers in the States, and the bulk of it is moving out of Hampton Roads ports. Mr. THOMPSON. Then what in the world has that to do with the cost of hauling coal to Europe? Mr. BUCKLEY. Foreign countries consider this coal from the standpoint of the cost inland as against the coals which they are buying. Mr. THOMPSON. Do you have a surplus of coal in the United States now? Mr. WEICHEL. Did that start just this year because it was warm? I didn't notice it last year. Mr. BUCKLEY. I do not think that is quite fair. We have had a lot of labor disturbances; we have had mines down for various reasons, to cut down the available supply. Actually, to my knowledge, even after last year, when we lost so much time, the mines had been developed to a point that nobody went cold in the United States last winter, because production became high. I Mr. WEICHEL. When you could only get 100 or 200 pounds at a time when you wanted a ton, I don't think the production was high. have people now that can't get coal from up in Pennsylvania. Mr. THOMPSON. Mr. Buckley, the coal that you sell to ECA, is that sold in competition with coal that you might otherwise sell in the open market in Europe? Mr. BUCKLEY. The coal we sell to ECA is sold in the open market in Europe. You have several countries in Europe that use their own dollars to buy American coal where they have dollars. Of course, like every place else, there is a shortage of dollars. Switzerland buys American coal, and we sell American coal to Switzerland in competition with other coals. We sell American coal in Sweden, where they have the dollars to pay for it. The same thing holds true in the case, say, of Portugal and Spain. I don't believe Spain is part of the ECA. But where we have the opportunity to ship coal in competition with these coals, where these countries are able to put up their own dollars, not ECA money, we have been able to compete successfully in that case. I would assume in that case, where they put up their own dollars, that they use their own ships to transport the coal, which, of course, would mean a lowered delivered price. Mr. HAND. What language do you suggest? Are you worried about the word "such"? Mr. BUCKLEY. I would prefer that the word "such" come out. Mr. BUCKLEY. Yes. Mr. NELSON. In answer to a question by Mr. Potter you said you thought Polish coal was coming in and taking up the deficiency. Does that mean that American dollars are going to the purchase of Sovietdominated production? Mr. BUCKLEY. I think that is particularly true in the case of Austria. I think so. The CHAIRMAN. Are there any other questions? Gentlemen, there are two or three other witnesses. I had hoped we could finish this afternoon, but I always like to adjourn about 4 o'clock to let the members return to their offices and finish other work that they have. I know I have some, and they probably have work to do. Mr. BOYKIN. How about the gentleman who wanted 3 minutes? The CHAIRMAN. He wants 3 minutes, and then Mr. Dushane wants how long? Mr. MATTHEW DUSHANE (Seafarers International Union). About 3 minutes. The CHAIRMAN. It will take longer than 3 minutes before you get through with the questions. Mr. Haddock? Mr. HADDOCK. Thirty minutes. The CHAIRMAN. Mr. Perry? Mr. PERRY. Fifteen minutes. Is he here? The CHAIRMAN. Mr. Dow asked to return, too. Mr. Dow. I would like 4 or 5 minutes to add a few facts. The CHAIRMAN. We will not get through this afternoon, gentlemen. I will recognize Mr. Estes for his 3 minutes, and then I am going to adjourn as soon as we can possibly adjourn after that. I am not going to recognize anybody else but him, and we will meet here tomorrow morning at 10 o'clock. We will only have a morning session, because the House meets tomorrow and we cannot proceed after 12 o'clock. STATEMENT OF FINNEL F. ESTES, COAL EXPORTERS ASSOCIATION OF THE UNITED STATES Mr. ESTES. Thank you, Mr. Chairman and gentlemen of the committee. The chairman has been kind enough to give me this time. I have to go to Pittsburgh tonight and will not be here tomorrow? The CHAIRMAN. I am glad you brought that out. I intended to make that statement. Mr. ESTES. I would just like to clear up the record a little bit. The inference has been left here that American consumers of coal have been denied the coal that rightfully belongs to them, having been discriminated against by sending coal abroad. I would like to clear up for the record that that has not happened, that there has been no shortage of American coal for the American consumer in this country; and furthermore, his price has been held down, although all prices of all commodities have gone up, as we all know, during the war and postwar period. The American consumer's price of coal has been held down to a relatively reasonable level. The other point that I wanted to leave is that when we say we are competing with foreign coals, we speak primarily of the coal that comes to western Europe, that moves west-bound from the Polish mines. I know there can be a lot of argument made pro and con as to whether or not we use American dollars to buy Polish coal, due to the trade balance between European countries, but nevertheless it comes out of the American pocketbook and the American taxpayer's purse, and when we buy coal from Poland, that money goes back of the iron curtain. We hear a lot of talk about trying to remedy that situation and trying to do this and that with respect to Russia, and in that respect we are certainly furthering and progressing the efforts Russia is making to dominate in western Europe. I might say that a lot of this coal that we mined in 1947, 630,000,000 tons, came out of the good mines of the State of Ohio. The CHAIRMAN. I am glad you said that. Mr. WEICHEL. And the cold people who needed coal had to pay for it, and you mighty well know what they had to pay. What was the price of coal when price controls went off-say of steam coal, shipping coal? What was it per ton? Mr. ESTES. When the price went off? Mr. Weichel, I couldn't give you the price of coal. It is not like bananas. There are grades of coal, starting with the high Indiana and Illinois, going down through the Appalachian field, and all vary so much that there is no such thing as a price of coal. Mr. WEICHEL. What part of the coal business do you know, just the part to bless it? Mr. ESTES. There is no blessed part. Mr. WEICHEL. Have you been in the coal-mining business? Mr. WEICHEL. Mining coal? Mr. BUCKLEY. I haven't mined it myself. Mr. WEICHEL. What are you, a lawyer for a coal company? What do you know about coal? All this price business that you got up and talked so nicely about, you don't know a thing about it, is that it? All I ask is, what was the price to consumers of coal when price controls were off. Mr. BUCKLEY. The price varied. Mr. WEICHEL. Name the prices on certain kinds. Take Pocahontas. How much was that a ton? Mr. ESTES. From $3.50 to $5.50. Mr. WEICHEL. Is the poorest $3.50 and the best $5.50? Mr. ESTES. That is the range. Mr. WEICHEL. Then take the so-called steam coal that you sell to industries, or what do you call that in your business? Mr. ESTES. Steam coal can be anything that is not metallurgical or gas or special-purpose coal. Mr. WEICHEL. What is the kind you sell to industries to make steam? Mr. ESTES. That is steam coal, except to utilities. Mr. WEICHEL. You know all about the coal business. You tell us. You were telling us how cheap it was. How much was it? Mr. ESTES. I would have to check the prices. Mr. WEICHEL. That is your business. Is that all the information. you can give us about the price? It was somewhere around $2.50, wasn't it, or about $3.50, wasn't it, for steam coal? Mr. ESTES. We had price ceilings that varied by regions. Mr. WEICHEL. I am talking about just when they went off. Mr. ESTES. That is what I am trying to say, Mr. Congressman. We had price ceilings that were established by regions of production. Mr. WEICHEL. All right, give us the price in Ohio, then. You know all about the coal business. It was about $3.50 for steam coal, was it not, a ton? Mr. ESTES. It wasn't more than that. The price varied by certain types of coal within each region. Mr. WEICHEL. Then, as soon as you wanted to sell that steam coal for export, and you could get it paid for through the State Department and European aid at $5 a ton to ship it over there, you raised it up to $5. Mr. ESTES. The export price of coal in many instances was less than the domestic price. Mr. WEICHEL. I am speaking with reference to the steam coal, and saying it was raised to $5. It was raised from $1.50 to $2.50 a ton, because you could get that much more for export. Mr. ESTES. No, sir. Mr. WEICHEL. I would like to have a statement brought in here on those figures, just with reference to what you say, that is all. The CHAIRMAN. Will you present the statement requested by Mr. Weichel? Mr. ESTES. Yes, sir. (The information referred to follows:) COAL EXPORTERS ASSOCIATION OF THE UNITED STATES, INC. Hon. S. OTIS BLAND, Chairman, Committee on Merchant Marine and Fisheries, United States House of Representatives, Washington, D. C. DEAR CONGRESSMAN BLAND: We are attaching hereto a statement, for insertion in the record of hearings held on H. R. 1340 on January 27, following the testimony of the undersigned. These data are submitted in response to request made by Congressman Weichel relating to the cost of industrial slack coals shipped to industries in Ohio, and reflecting the price in effect on August 21, 1946, and the prevailing price to the same industrial and utility users today. Very truly yours, F. F. ESTES, Executive Secretary. OPA Maximum Price Regulation No. 120, amendment 162 for district No. 4-Ohio Prices effective Aug. 21, 1946: Per net ton Price of industrial slack coal from underground mines_. $3.43 .50 Increase July 1, 1948, due to wage increase granted to United Mine 35 Price today of deep-mined slack__-- 4. 28 Maximum prices were effective in the bituminous coal industry until November 9, 1946. Since that time the bituminous coal industry, due to wage agreements negotiated between the coal operators of the United States and the United Mine Workers of America, have had to pay an increase in wages due to the second and third round of wage increases prevalent in America, which brought the level of wages to the highest today of any American industry, and in addition, provided for a welfare fund which presently amounts to 20 cents per net ton, and this had been effective since July 1, 1948. Prior to the wage agreement which became effective July 1, 1947, the basic wage per day in the bituminous coal industry was $11.85 for a 9-hour day, plus a welfare fund based on the Krug-Lewis agreement of 5 cents per net ton against all coal produced. The wage agreement negotiated between the coal operators and the miners, effective July 1, 1947, provided an increase of $1.20 per day in the basic wage of the coal miners, bringing the wage to $13.05 per day for 1 hour less, as the previous wage agreement was based on a 9-hour day and the revised agreement was based on an 8-hour day; so in effect wages were increased $3.05 a day as the miner worked one less hour to earn his $13.05. The payments to the welfare fund were increased 5 cents, making the total payment to the welfare fund 10 cents per net ton. The wage agreement negotiated between the bituminous coal operators and the United Mine Workers of America, which became effective on July 1 1948, provided for an increase of $1 per day, bringing the daily wage to $14.05 per day and an increase in the welfare fund of 10 cents per net ton, making the total payment on coal produced for the welfare fund of 20 cents per net ton. In consideration of the foregoing increases, the amount of the wage increase passed on to the industrial consumer of coal is quite moderate, and in addition, it is a matter of historical record in the bituminous coal industry that at least 75 percent of all coal sold is on the basis of contracts made with the consumer and generally covers a period from April 1 of 1 year to March 31 of the following year, and because of this customary procedure in the making of contracts, the consumer of bituminous coal has paid, since the expiration of maximum price regulations, whatever the price was at that time, plus increased costs brought about by reason of wage increases. The CHAIRMAN. Gentlemen, since I announced that we would adjourn, I have been reminded that Mr. Dow, who wants 3 minutes, has a trial in New York in the morning. I try to accommodate these people as far as I can. STATEMENT OF WILBUR E. DOW, JR., AMERICAN TRAMP Mr. Dow. I did not think this hearing would originally last more than 1 day. First, I should like to say to Mr. Weichel that he asked me yesterday how many ships the members of our institute bought in 1947, and how many they owned in 1948. The Maritime Commission figures given him were in error, and they left out some of the members of our institute that had bought a considerable number. They are revising the list for you, Mr. Weichel, and it will be within one or two of the number of 40, which I gave you. The CHAIRMAN. When will that be in, this revision that you are making? Mr. Dow. I think Mr. Sullivan may have it tomorrow. The CHAIRMAN. You can hand it to counsel for the committee, Mr. Meade, and it will be incorporated in the record at this point. |