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Coaling at Panama © cently made.a report :to the United States -government relative to the influence of the Panama canal on the American coal trade. It is the first attempt that the government has made to approach a situation that will shortly be of deep concern to vessel owners trading through the canal zone. Prof. Johnston says: | The cost of coal and the amount of space required for coal have a large influence upon operating ex- penses and upon the gross and net earnings of vessels. Other things be- ing equal, vessel owners will select the route upon which coal is cheapest and along which coaling stations are nearest to each other. The ability to secure coal at short intervals en route enables the ship master to minimize bunker space and to use a maximum share of the ship's capacity for paying cargo. Indeed, it is often profitable | Pes: Emory R. Johnston has re- for a vessel, sailing from a port at. 'which coal is relatively cheap, to take on a comparatively small amount of coal at the beginning of the voyage, and to buy coal at higher prices at stations en route. When cargo is abundant and freight' rates are remunerative, bunker space will be kept as small as practicable. Steam- ship managers constantly watch fuel costs, and seek so to adjust the three factors of cost of coal, quantities taken at stations, and the relation of bunker and cargo spaces as to secure maxi- mum profits from the operation of 'their vessels. Traffic of Pacific Asia - The competition of the Panama and Suez canals for the traffic of Pacific Asia, the East Indias and Australasia will be appreciably affected by the cost of coal and the number of sta- tions along the competitive routes; indeed the relative coal prices and coal facilities via the Panama and al- ternative routes will have almost as much influence as will tolls upon the volume of traffic through the Panama canal. The subject was deemed to be of such importance as to require de- tailed discussion and has been consid- ered carefully in the government's investigations. The amount of coal annually con- sumed by ocean vessels was estimated, in 1912, by the Bureau of Statistics of Commerce and Labor, to be 75,- The Government Has Caused a Special Report to be Made on the Subject 000,000 tons, valued at over $250,000,- 000. Some coal companies operate depots at numerous stations in many parts of the world. In a few instances, steamship lines provide coal both for their own use and for sale, as is done by the Pacific Mail Steamship Co. at Acapulco, Mexico. The Panama Rail- road Co., the capital stock of which is held by the United States govern- ment, sells bunker coal at Colon and Panama, but not in large quantities. Along the older trade routes coaling. stations are frequent, while on the newer ocean highways the stations are farther apart. At the larger stations there are often several dealers, each having depots, wharves, lighters, and other loading facilities: Most steam- ship companies, even the larger ones, do not supply themselves with coal, but make an annual contract with some one dealer having coal at con- venient stations along the routes over. which the company's vessels are op- erated. The coal dealers publish -an- nually the prices at which they are willing to contract to'supply all coal needed by the purchasers. The con- tract prices are usually somewhat low- er than the figure at which coal may be bought by the occasional buyer; and the annual agreements usually provide that "should the general cur- rent price for equal .quality coal be lower at the time of coaling, steam- ers are to receive the benefit of such lower price.' The contracts, © more- Over, are exclusive, in that coal mer- chants agree to furnish all the coal needed and the vessel owners bind themselves to make all their pur- chases from the dealers with whom they are under contract. The cost of coal and the price at which it is sold at any particular sta- tion depend, first of all, upon the nearness or remoteness of the mines from which the coal is obtained. The Stations along the Suez canal obtain coal mainly from Wales, England and Scotland, Welsh coal being most largely sold. The prices are relatively high at the Suez canal and higher south and east of the canal. The coal prices along the Suez route do not rise strictly with the increase in dis- tance from Great Britain, but the advance is roughly in accordance with distance until stations are reached at which other coals can successfully compete with Cardiff or Durham coals. In this connection _the coals from Japan, East India, Australia, China, New Zealand, are an important con- sideration, as on the Pacific coast of North America the coal from the state of Washington and British Columbia, and on the eastern seaboard of the United States and in the West Indies the excellent coals from Pennsylvania, West Virginia and Alabama enter into the situation. There can be no doubt that the Panama canal will permit of the American coals competing with other coals in many ports where they are yet strangers. Rates Determine Distance Ocean freight rates determine the distance coal can be transported to supply coaling stations. At Valparaiso, Iquique, Antofagasta and other points on the west coast of South America some distance from Coronel, the sup- ply is chiefly American, Welsh and Australian, because of low freights on vessels bound for Chile to secure car- goes of nitrate. At Montevideo, Bahia Blanca, and other points on the east coast of South America the supply comes from Wales and England, be- cause the outbound freights from Great Britain to that section are rel- atively low. Relative prices at which different grades of coal can be sold at. any particular station are determined by the steaming qualities of the coal; and the higher prices paid for the best grades sometimes enable such coal as that from Wales to be sold at sta- tions remote from Great Britain in competition with inferior coals from nearby sources. The steaming value of different American coals is shown by the specifications under which the United States government purchases coal at different points. The specifica- tions provide among other items, for an agreed number of British thermal units per pound of coal. West Virginia coal, shipped. from Norfolk and Newport News, is now sold at Colon,' Panama, St, Lueia, St. Thomas and also in small amounts on the west coast of South America, and some other points. It is general- ly conceded that the steaming value coal is about 5 per cent less than that of the Welsh product, and this dif- ference is to be taken into considera- of this Pocahontas and New River tion in comparing prices and costs.