Cardiff Coal in America

Hokitika Guardian, 31 December 1921, Page 3

Cardiff Coal in America

BIG"MARKET CAPTURED.

PRAJfOiSCJO, Nov 26. Evidence tlmt Great Britain is slow* ly but assuredly regaining liftr foreign trade in the seven seas of the world is afforded in a- .striking manner in the bituminous voids of South Wales finding a certain foothold in the American markets, to the absolute consternation of many of the large coal operators of. the United States. This silent and peaceful penetration of America’s trade channels on the part of South Wales mine owners has displayed itself in the port of San Francisco, and also in Honolulu, Hawaiian Islands, at both of which important American naval stations Cardiff steam coal lias rehabilitated itself in a surprising manner Despite the fact that commercial men of the Pacific Coast had been busily waging a war with the American railways for better freight rates the big United States railway trusts refused to listen to the appeals of the American coal handlers of the West and the latter began to look over the world’s coal supply centres. They had heard of the iiountifiil supplies enjoyed by th South Wales coalfields, and of the excellent quality of Glamorganshire’s steam coal they were fully cognisant, so the San Francisco firm known as the King Coal Company decided to embark in business with Cardiff mine-owners. The King Company purchased 26,000 ton of Welsh real at a most acceptable figure when exchange was much lower than when the first shipment arrived in the port of San Francisco a few days ago. When the trim steamer Neils Nielsen of Norway, nosed its way through the golden gate of San Francisco, the first intimation to the people of Western America was made that 5000 tons of Cardiff" coal had reached the Western port after a 05 days’ trip from Cardiff, and was successfully competing with American and Australian coal concerns, who for long, had enjoyed a firmly established business on the Western seahoard.

LOW EXCIIANOi: KAVOUHAHIJ Hi is shipment ot Cardifl coal was the first fur sixteen years, according to Mr Dowling. of tlio firm of Hodwoll and Company, of San Francisco who arranged for the shipment chartei. Mr Howling stated that when the purchase of AM,OOO tons of Cardiff coal was made, one factor which helped in making the price reasonable was the low rate of exchange, as compared with tile four-dollar rate of poundage when the coal commenced to reach California. The King Coal Company got n rate ol exchange for this coal said Mr Dowling. very much less from Cardiff than they have hitherto paid on I'tnh coal from the mines in that American Stale to San Francisco. Me thought the prospect for further shipments from South Wales were inestimably good. He agreed that the Cardiff bituminous coal had no equal in quality for bunkering purposes. Air Koran, of the King Coal Compilin' made some startling revelations concerning the difficulties encountered by corporations bundling coal in America, showing that arljftrary freight rates imposed by American railway managements were crippling domestic trade and compelling recourse to foreign markets in the hope of securing better treatment. On this subject of the possibility ol development of a lucrative coal tradebetween Cardilf and Western America ports, Mr Koran said: “Yes. at the price and quality, which is the basis of all competition.” Discussing the qualities of the Cardiff coal, Mr Koran aid: '‘Cardiff coal is undoubtedly 20 per cent, better than what has been brought to San Krancisco from other directions, and from unlimited knowledge I bone the present shipment from Cardiff is of the same high grade ol coal. ‘•As regards this coal coming to the West in large quantities, I would say that it all depends on freights, and this is what might knock it out ol the American market. It also depends on how badly the producer on the other side of the Atlantic might want to get his boat hack to the I’aeific Coast, and forced down chartering prices. This Cardiff coal will be consumed in deepwater vessels.

Kit Kit: lIT I! EDUCTION I’OSSllUd'

“Th«*rc* is no roal usotl for industrial purposes in California, oil fuel serving that purpose. The Welsh coal W" have imported will he used in hunkering vessels of foreign registry touching at. San Francisco. Of course, the •purchasing of this Cardiif coal might he said to be merely prospective business, but while it is prospective it nevertheless might mean a lot of trade for the future. There is no <|iieslii.n about the excellent .nudities of coal and the i s verv satisfactory, but what the .. . , • .... L.k t.fl i It EG H

future will bring is very mu.. “• i—diet. , ~ “Kill- the past eight or ten years tin American market has been supplied | w ith American-produced coal. Ihe managements of the American railway systems are unite cognisant of the ini- i ’ portaitioii of foreign coal, and' will no • (loabt attempt to meet the situation bv reducing freight rates even below t la* standard which was in clfeot up arbitrarily and horizontally increased. 25 per cent on that date. That is what started the importation of foreign coal into the United States—the excessive freight rates demanded by American railroads. As 1 said bo I unit is very bard to forecast what will eventuate on bis complex situation, but 1 do not believe the American railroads will ever lot this business get away from them. “The Western Pacific Railway carries the hulk of the coal produced in the State of Utah, which is only 900 miles to the base of supply. It is ' primarily a coal-carrying railroad, very little, of other commodities being transported and there is no doubt- they will , make such freight rates in the spring ’ 0 f (poo which would preclude a heavy movement of foreign-mined coal to the Pacific Coast.” OUSTING AUSTRALIA.

What appears also to have surprised the Californian commercial men oven more than the circumstance that Cardiif steam coal has appeared in Western American ports, is the fact that Welsh coal is reaching Honolulu, thereby severely cutting into Australia’s acknowledged market, a market

which the Commonwealth has enjoyed for many years on a lucrative basis. One of the San Francisco coal firms on a- larg scale is that of J. «T. Moot© and Company, Inc., and they were recently interviewed by Sir Arthur Rickard, of Sydney. Australia with the object of reviving the Australian coal trade: with the United States, hut so far nothing tangible has resulted, although tho Moore concern lias notified Ntnv South Wales coal corporations suggesting a. lino of action to meet the situation. Speaking of the inroads of 'Welsh coals into the American market, Mr |{]air of the Moore Company, said: “Everybody admires tho enterprise of tho Welsh coal-owners in managing to secure n. foothold on the American market. but what is more surprising is that sales have, been made of three large cargoes of Welsh steam coal in Honolulu, also for hunkering purposes This coal was carried at the extremely attractive freight rate of 20 shillings per ton for carrying it from Cardiff to Honolulu. There is no use blinking the fact that this Cardiff business is eliminating Australia from some of her established markets in the midPfioitie. M r pinir then launched into) a history of the difficulties experienced in handling Australian coal nowadays on the Western Coast of the United States and said: “The f.o.b. price of Australian coal has gone steadily up during it be wartime, and there is no disposition on tile part of the colliery proprietors down there to lower the price to meet competition. In addition to this, the Newcastle authorities in New South Wales are imposing an additional tax of sixpence per bon for crane-bird which must ho paid hv tho foreign buyer. Furhormore, the harbour authorities there, some months ago placed an additional tax of threepence per ton upon coal exports and this also has to be borne by tho foreign buyer.

“The Australian coal companies arc constantly advancing their prices while other countries are lowering their prices to gain the foreign market. As a Coiise<|uence the Welsh coal-owners of Cardiff are to he warmly congratulated) oil reaching out for {heir share off the world’s coal trade, and they deserve every encouragement for their astuteness in that direction.”