h t the considcriition of tlic p n t pro1)Icms witli which t,lic ,coal iiitliistry l t : ~ Iicen f i i d for sonic tinic, oiic fnctor :ippc.itrs not. to liiivc rcccivctl t l i n t iittctition \vhiclt its fitiid:inie~ttitl ccoiioitiic ini~iortnncc ciills for. It is iiti iinqiiestioticd fiict thit Iiirgc qiiiitititics of con1 :ire being sold iit. pithcad citltcr n t ii tlcfinitc loss or i i t itnrcmuncrittirc prices. Tlic piirlous stiitc of tlic conl triitlc must I J ~
iittribiitcd to this itnfortwintc deliit in the industry's profit iind loss ticcoitnt,. \'lint is not. gcncrnlly recogttiscd is the fact t,liiit t,hc portion sold below cost. price, ivlticli itt-most pit,s ntnounts to 25--3070 or more of the tot.nl od])ut, is of ii pnrt,icitlur kind, iind is eoiti~ioscd of certtiin grndcs dilfcrent~ from those which it re sold HIJOW tlic nvcriige cost of protluction. The higher priced griiilcs Iron1 niiy onc! i:ollic~y Iinvc, tltcrc!forc, to carry 1111 ovcrheiiils, plits the Iosscs on t h 1ow-pr:ttle portions, licfiirt! ii net profit cnti lie ciirnctl.
tt is iniinifcst t.ltiit, c s c q k witliiii certiiiii h i t s tlictntcd 1 ~y iunrkct condit,ioiis, tlicsc differences in pice cannot Lc ntcrcly due to nii itidiscriiitiittttc COIII-Iictitivc scriim1Jlo~ IJut intist Iinrc? ii tlcepcr-lying cconontic cai~w. Tlic csplriniith~ is, iu niy o w i view, dint t,hc iiitririsic ritluc of tlic loivcr grades itppcit rs to lie less tltiiii the iirerugc coat of ~~roduction pi:r ton of totnl out~iitt froin iiny one pit or group of collicrios.
The portion sold lielow cost jiric~', niniiily slncli or duff, is usually Itigli in :isIi, n i i d couscqitcnt~ly ltiis nii inferior liciit v:iliic. Tlic oln-ioits remedy is to " itpgrnde " this itiirL'itiiiiicriiti~c Iiortion 1~y cliiniiinting its tiiiticrnl inipurit.ies, iitid tlius rnisc i1.s wluc iil)ovc tltc l e \ d of tlic tiictiti cost, of ~m~cliictio~i.
1he piirposc nf this pal~cr is to sliow tltrit t l i c tt!cliniciil solution of tliis jirol~lcni lins been definitely iicliic!vctI, with rcsiilts which innkc the niloption of tltc processes i 11 vol vcd won omicn 1 ly t lcsi ra lilc nnil conii tic rr iit 1 ly ~irofitalilc~ froiii tlic poitits uf view I J f I.iotli t,hc ~iriiiliicer iintl the c o n ~i ~i ~i e r of c o d . A s soon ns t,ltc coiil industry will fiicc the fact tliitt, owiiig to tlic c:sistittg stiqrlii~ ciipncity of production of tlie ivorlcl's coiil iiiincs, it