In normal times it is very hard to dispose of degradation or slack coals at Superior or Duluth. These slack coals are sold at very low figures. Rates have been established covering the movement of coal from Duluth and Superior to Minneapolis $1.895 on screened coalsboth high and low volatile-and $1.325 on slack coals through 11⁄2-inch

screen.

Therefore the elimination of degradation insofar as possible is a very important factor both to the operator and consumer. Degradation could be reduced 50 percent by delivering this coal to all points lying on and adjacent to the Mississippi River in Minnesota and Wisconsin by river, thereby effecting a saving of at least $1 per ton on prepared coal in addition to savings in freight.

We are not unmindful of the opposition to the canalization of the Big Sandy and its tributaries sponsored by the railroads. We note they have affiliated with them operators who now have certain advantages that they would like to reserve unto themselves and exclude if possible.

We feel that the advantages accruing to the railroads if this project is completed in the way of increased traffic both in and out of territory affected would be great and likewise the communities affected would prosper beyond measure. The railroads have been greatly benefited in all sections of the Mississippi Valley when tied into the inland waterways improvement which comprises some 5,000 miles.

I would like to say something about the large acreages of undeveloped high grade coal lying between the Levisa and Tug Forks of Big Sandy-even beyond the limit, as shown on map No. 3 on page 11 of the prospectus. However, many billions of tons of coal lie outside the 10-mile limit but the owners have been prevented from developing those properties because of lack of transportation facilities. If the Levisa and Tug Forks of Big Sandy are canalized they can provide their own outlets and will not be dependent upon the C. & O. and N. & W. for an outlet for their production.

Our survey encompassed a study of the markets available to riverborne coal on the Ohio and Mississippi Rivers where we at the present time are shipping large tonnages of both high and low volatile coals.

For the information of the Board, I submit a statement that was prepared under my direction for the southern coal producers in 1943, which gives a distribution of coal not only from the smokeless field but from all of the producing fields east of the Mississippi River.

Mr. PETERSON of Georgia. Without objection it will be included in the record.

(The document is as follows:)

DISTRIBUTION OF COAL INTO VARIOUS MARKETING AREAS EAST OF THE MISSISSIPPI RIVER (INCLUDING ST. LOUIS, MO. AND DAVENPORT, IOWA) DURING THE PERIOD OCTOBER 1, 1940, TO SEPTEMBER 30, 1941, INCLUSIVE, AND PRINCIPAL FREIGHT RATES TO KEY DESTINATIONS IN EACH AREA

(Southern Coal Producers' Association, Washington, D. C., February 15, 1943)

EXPLANATION

I. The charts herein show a general geographic outline of the market areas lying east of the Mississippi River (except that St. Louis, Mo., and Davenport, Iowa are included) as such areas were promulgated by the Department of the Interior, Bituminous Coal Division, pursuant to the Bituminous Coal Act of 1937, as amended.

This territory is shown on 12 sectional maps numbered 1 to 12, inclusive. The market areas and general portion of the States covered by the various sectional maps are as follows:

Map 1. Market areas 1-4 and 6-New England, New York, eastern Canada, eastern Pennsylvania, northern West Virginia, Maryland, and Washington, D. C. Map 2. Market areas 5, 7, and 9-19-western Pennsylvania, Panhandle of West Virginia and Ohio.

Map 3. Market areas 20, 21, and 42-44—Michigan, Wisconsin, and a portion of Canada.

Map 4. Market areas 22-34-Indiana and Chicago area.

Map 5. Market areas 35-41-Illinois, St. Louis, Missouri, and Davenport, Iowa.

Map 6. Market areas 8, 100, 105, 107, 108, and 127-northern West Virginia, Virginia, eastern North Carolina and eastern South Carolina.

Map 7. Market areas 101, 102, 106, 110-113, and 125-southern West Virginia, eastern Kentucky, western Virginia, Tennessee, southwestern North Carolina, and northern Georgia.

Map 8. Market areas 104, 114-118, and 150-western Kentucky, western Tennessee, and northwestern Alabama.

Map 9. Market areas 120-124, and 147-Alabama and northern Florida. Map 10. Market areas 109, 126, 139–143, 145, and 146—eastern South Carolina, Georgia, eastern Alabama, and Florida.

Map 11. Market areas 128-137-southeastern Alabama and southern Georgia. Map 12. Market areas 148, 151, and 152-Mississippi and northwestern Louisiana.

Tonnages shown opposite the district number in each market area are the tonnages shipped into the particular market area by the district involved during the first year of minimum prices October 1, 1940, to September 30, 1941, inclusive. Such tonnages were determined by the Bituminous Coal Division from invoices submitted to it by producers. The tidewater tonnages shown on section map No. 1 represent the tonnages of the various districts' coals which moved through tidewater ports, most of which ultimately moved to east coast destinations in Maine, New Hampshire, Massachusetts, Connecticut, New York, New Jersey, and Delaware. Likewise the lake tonnages shown on section map No. 3 represent tonnages loaded into boats at lower lake ports most of which ultimately moved into market areas 4, 21, 29, 30, 42, 43, 45, and 46. (No information available showing ultimate destination of lake or tidewater coal.)

Freight rates shown opposite the tonnage figures for each district are the principal freight rates in effect as of February 1, 1943, from the particular district to a key destination in each market area. (Such destinations are shown within each market area.) Freight rates are not shown in connection with tidewater or lake tonnages for the reason that different through transportation charges apply depending upon the ultimate destination of the coal. It will be noted that for district No. 7 the high volatile freight rate is shown to be the same as the low volatile rate and for district No. 8 the low volatile rate is shown to be the same as the high volatile rate to market areas where both coals move. The reason for this is that a portion of the high volatile coals of district No. 7 move on the same rate as the low volatile coals while others move on the same rate as the high volatile coals of district No. 8 and the same situation exists with respect to the low volatile coals of district No. 8.

Key to freight rates used in the vrious market areas:

(a) Clearfield rate.

(b) Pittsburgh rate.

(c) Fairmont rate.

(d) New River rate or Pocahontas rate.

(e) Kanawha rate or Kenova rate.

(f) Helvetia mine of Rochester & Pittsburgh Coal Co.

Blaine mine of Lorain Coal & Dock Co.

Mobley mine of Valley Camp Coal Co.

Ohio No. 8.

West Kentucky.

(k) Southern Illinois.

(1) Brazil Clinton.

(m) Whitwell.

(n) Spadra.

87050-46- -7

In instances where the letters A or B are shown opposite a freight rate: A denotes lump-coal rates, B denotes fine-coal rates.

II. In addition to the maps or charts there is contained herein a statement showing (a) the tonnage of coal shipped by each of districts 1 to 13 into each of market areas 1 to 152 during October 1, 1940, to September 30, 1941, inclusive; (b) the tonnage shipped into other market areas; (c) tonnage shipped to Lakes; (d) tonnage shipped to tidewater; (e) tonnage shipped to railroads; (f) tonnage shipped via truck, and (g) the total tonnage shipped by each district via all methods.

III. A copy of a map showing "common consuming market areas" is shown on the last page thereof.

87050 O46 (Face p. 88) No. 1

Washington

DEL

STATE BOUNDARY.

MARKET AREA BOUNDARY.

COMMON STATE AND MARKET AREA BOUNDARY.