The Coal King’s Dilemma: Seattle vs. the World

DECLINE IN COAL.

An exchange reports the great coal panic of a powerful Eastern combination on coal, and the sale of 200,000 tons of Pennsylvania coal in New York at auction; the consequence of which was a fall of two dollars per ton in the price.

The San Francisco Journal of Commerce reports the arrival of coal at that port for eight months ending September 15th, as follows: Australian: 63,871 tons English: 33,674 tons Chile: 2,096 tons British Columbia: 60,390 tons Total Foreign: 102,011 tons Eastern: 17,651 tons Seattle: 36,177 tons Coos Bay: 19,800 tons Bellingham Bay: 13,733 tons Port Orford: 323 tons Rocky Mountain: 143 tons Mount Diablo: 64,390 tons Total Pacific: 153,808 tons Grand Total: 383,470 tons

In the above showing, it will be seen that Australia, British Columbia and Mount Diablo, each, beat Seattle by a few thousand tons. During the early part of the year Seattle led the column; but during August the foreign arrivals footed up, in round numbers, 44,000 tons, against less than 8,000 for the entire Pacific coast.

Prices, however, rule at $9.50 to $10.50 for Seattle, against $6.00 to $7.00 for Nanaimo; $6.00 to $6.50 for Wellington; $6.00 for Coos Bay; $7.00 to $8.30 for English and Australian; and $5.75 to $7.75 for Mt. Diablo, Lehigh, Pittston and Cumberland are the only articles that are quoted higher than Seattle.

One of our most formidable rivals in the San Francisco market at present is the Australian, but its freight must of necessity be much higher, on account of the greater distance. We have in that respect greatly the advantage. England competes with us for the time being, for the reason that the wheat fleet brings coal for exchange cargo; but this cannot continue long as England will soon sell all her coal at home. She will find it more to her advantage to send out her cheap hardware and other manufactures for return freights, instead of competing with the local coal supply, with distance and tariff against her. The cost of transportation from Pennsylvania is $10 to $15 per ton; hence the East can never come into serious competition with us.

In case the over-supply in the San Francisco market should continue, there are two resources for the maintenance and increase of our market: One in the establishment of local manufactures to consume a larger proportion of the product of our collieries at home. The other is the cheapening of freights by the development of ship-building on the Sound. It is stated by the journal quoted above, that if freight from Seattle and Nanaimo could be lowered to $1.50 per ton, our coals could be placed on the San Francisco market at from $4.50 to $4.60 per ton.