291 



handled in large volume. Coal varies widely in quality, with varying 

 contents of sulfur, fly-ash, moisture, useful chemicals and volatiles. 

 It may vary in density, in coking qualities (for blast furnace use), in 

 flash point, and in thermal content. Since a considerable amount of 

 coal is produced from small mines, this variability of quality presents 

 awkward problems in marketing. Accordingly, a good deal of research 

 has been directed toward converting coal to liquid fuels or into a stand- 

 ardized ''char" of consistent combustion qualities. 



Among the problems of coal research are the fact that its distri- 

 bution among many small volume producers makes difficult the accumu- 

 lation of capital reserves to invest in research. The problem is made 

 worse by the narrow price margin in coal, attributable to the con- 

 siderable competition for markets with producers of other fuels and 

 among coal producers. Specialized technology of coal processing in- 

 clines toward the application of large volume production. Because of 

 the structure of the industry-, there is insufficient general interest in 

 broadly applicable research and there are insufficient resources to con- 

 duct very much research applicable to a particular resource situation. 



In summary, by 1955, technology of coal mining had increased the 

 efficiency of production, but had imposed substantial capital costs 

 (cost per annual ton of output of $10 to $15), which smaller mines 

 were not able to afford. The tendency, therefore, wa.s for production 

 to be increasingly concentrated in larger deposits. Strong political 

 pressures were accordingly generated at the local level out of the 

 inability of small mines to compete, to maintain their employment, 

 and to provide the basis for community income. Much of the Appalach- 

 ian region, a major coal-producing area, was experiencing increasing 

 hardship in consequence of the economic concentration of the coal 

 industry and the diminishing market for coal. 



National moves to strengthen the coal industry 



Heavy reliance was placed on the coal industry for industrial energ;v', 

 electric power, space heating, and export to allies during World War II. 

 After the war ended, exports were expanded to aid the war-devastated 

 countries of Western Europe. U.S. coal production reached a f)eak in 

 1947. However, thereafter, energy demands declined, and competing 

 fuels began to make heavy inroads. The railroads converted rapidly 

 to diesel power. By early 1950, the coal industry was in the throes of a 

 labor dispute which motivated President Truman to ask the Congress 

 for ''legislation authorizing the Government to take over the coal 

 mines and operate them temporarily as a public service." However, 

 said the President: 



These recurrent breakdowns between labor and management in the coal in- 

 dustry are only symptoms of profound and longstanding economic and social 

 difficulties in which the industry has become involved. We can hope to work 

 toward real solutions of the unstable relations between labor and management 

 in the coal mines, only if we come to grips with the problems which foster 

 instability. 



I further recommend, therefore, that the Congress establish a commission of 

 inquiry, including members from the Congress, the executive branch, and the 

 public, to make a thorough study of the coal industry, in terms of economic, so- 

 cial, and national security objectives.' 



^ Special message to the Congress on the coal strike, Mar. 3, 1950, In U.S. Public Papers 

 of the Presidents, Harry S. Truman, 1950 (Washington: U.S. Government Printing Office, 

 1950), p. 190. 



