Coal Age

AUG 2012

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1950-1959 has an opportunity to settle down and real- ly work. With the 1950 contracts apprecia- bly broadening that opportunity, the situation can be truly described as a new start," wrote Given in his April editorial. The new UWMA contract was good through June 30, 1952—a period of 28 months—and could not be reopened for any changes until after March 31, 1951. "All this adds up to a chance for stability for at least two years and possibly longer." Following the agreement, George H. Love, president of Pittsburgh-Consolidated Coal, and the operator's lead negotiator at the talks stated, "This coal industry is not a sick industry…This country is one of a very few where coal mining is still in private hands operating under a free enterprise sys- tem…It is a modern aggressive industry with three to six times the produc- tivity of the coal industry in any oth- er country and we are going to do better than that. We need stability and the contract provides it." Labor peace couldn't have come any sooner. By the middle of the year war with North Korea had erupted and, with the Chinese and Soviets backing the Communist government, World War III seemed like a real possibility. For coal, this "could bring a return to the condi- tions in 1944 and 1945," but this time, with the increased capacity created during the war, coal was ready. Combined between anthracite and bituminous, almost 800 million tons of production was possible. "Both industries are equipped with modern preparation plants that produced special-pur- pose fuels for industry and a variety of quality coal for home and com- mercial uses. In addition, there's no fifth column in the coal mines. Miners are loyal and patriotic citi- zens," wrote Given. By the end of the year, the nation's 479,000 coal miners had produced approximately 560 mil- lion tons, an increase of more than 15% from 1949 figures. New machines and min- ing methods also helped bituminous oper- ators increase efficiency from 6.43 tons per man-day to over 6.75 tons per man-day. But unlike World War II, the nation's war machine now ran almost entirely on oil. Railroads burned almost 20% less coal in 1950 than the year before and fewer con- sumers heated their homes with it. The August 2012 only real bright spot was in the electric util- ity sector; that year power plants burned an estimated 90 million tons, more than 7% from the year before and reflective of a longer-term trend. Though there were 637 fatalities—44 more than the year before, these fatalities occurred at the new record low rate of 1.16 per million tons, a 6% improvement over 1949. Key to improved safety: roof-bolting. "At the end of 1950, approximately 450 large mines producing over 1,000 tons daily were using the tech- nique." The Bureau of Mines estimated that about 75 million sq ft of roof had been bolt- ed through that year. Things were going so well in the indus- try that labor and management came to a "voluntary agreement" on January 18, 1951, to boost miner's wages by $0.20 an hour— defense agencies urging that coal be made the No. 1 choice among fuels. In September, the Tennessee Valley Authority (TVA) announced the largest single coal contract ever: more than 18 million tons to be delivered over a 10-year period. Combined, through September 1951, the TVA had agreed to purchase a total of 27,795,705 tons of coal for use at its five steam plants at a total cost of $92,647,705. Contract prices varied from $2.45 to $4.70 a ton. TVA consumption of coal at the time was projected to reach 13 million tons annually by 1956. Coal Age reports on the labor peace achieved. *Coal Age, September 1950 "the first time in some 30 years that a new wage agreement had been effected in the bituminous industry without prolonged negotiations or a mine stoppage." The $1.60 increase brought basic wages to $16.35 per day. Stability was rewarded. In January 1951, Consolidated Edison, New York City, returned to coal. In February, the federal Munitions Board sent a memo to all 100th Anniversary Special Issue Production all year went smoothly and by year's end approximately 576 million tons had been mined—the highest total since 1948. Bituminous operators mined more than 535 million tons, almost 25% of which was surface mined and more than 55% of which was mechanically loaded under- ground. However, as 1951 came to a close, tragedy struck the coal industry. At 8 p.m. December 21, as the last shift before Christmas shutdown settled into work, the CW&F; Orient No. 2—the fifth highest producing mine in 1950— exploded killing 119 men instant- ly. A stunning blow to the industry, the causes and ramifications of the disaster had long-lasting effects. And, in a way, the Christmas explosion marked a turning point in the coal industry. Hopes were high, however, that 1952 would prove a better year. The overall economy and all basic industries, due to the Korean "Police Action," were producing at record rates—except coal. Stuck at only 80% capacity, one hoped for growth area for coal was powering the atomic weapons and energy sector. The semi-secret new cold war plutonium trigger and deplet- ed uranium facilities required lots of electricity and coal was tasked to provide it. "As the impact of the defense effort is felt by heavy industry throughout the United States, I believe that there will be an increase in the market's demand for coal, principally the steel industry, the backbone of our defense pro- duction, and by the power industry, which is basic to our national defense," said Stuyvesant Peabody Jr., president, Peabody Coal Co., in the February issue. New chem- ical plants were also built along the www.coalage.com 95

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