Archives

Worms & C°

Cardiff, 29th Nov. 1915
MM. Worms & Co - Paris

The South Wales Coal owners have displayed more than usual cleverness this Autumn over negotiations for next year, and we cannot help but admire them. For the last two months whilst the Coal Trade was slack they steadfastly declined to discuss contracting. Now that Admiralty demands have suddenly stiffened the market they are out to take full advantage of what may be but a temporary phase. Anyway undoubtedly they have, by refusing to deliver arrears in some cases, and in others merging same into new contracts at full price, succeeded in booking no inconsiderable amount of trade. They had informal meetings Saturday afternoon, and a pretty good understanding we can feel exists as to the policy to be pursued, as well as the price asked.
We feel fairly sure that with one or two exceptions we shall be dealt with on more generous lines than most of our neighbours. The policy we have followed was extracting promises that when the different collieries formulated their prices we were to be told forthwith, and most people have already now seen us. Those who have not ; such as Mr. North Lewis, Rhymney, Lewis Merthyr and one or two others of lesser importance, have good excuses as we well know, for not having yet redeemed their promises. Meanwhile we have this evening received letters from Great Western and Powell Duffryn as per copies herewith. The Tredegar C° had a hurried meeting of the Board on Friday last, and are to meet again to-morrow in London. They have done nothing yet, but the Agent says that they have an offer made them of 25/- from a casual client, who next year wants their coal on account of its greater freedom from Admiralty requisitions; although as we have painful knowledge, far too much to please us has been taken by the State this year, otherwise our arrears would not be so large as they may likely prove; and we did not forget to ram this fact well into his recollection so much so that he is going to recommend that we be offered 120.000 tons at 24/- and that delivery of arrears be made to us at existing contract price, but the quantity so delivered be deducted from the aforesaid 120.000 tons. We are inclined to think these terms are about as good at the moment as we are likely to obtain from them.
Another coal, somewhat free from Naval demands and rather alike foregoing inequality, and is steadily appreciating in quality and reputation, is Graham's Navigation, which at the present moment could be bought at 24/-, although the quantity which we could get would not be large. The Agent sold a lot to-day at that figure.
Still another is Russells Black Vein, which ranks nowadays nearer Cardiff qualities than Monmouthshire to which it rightly belongs.
The Agent is, we believe, in Ireland and may not be back for a day or so, but he begged when selling us quantities during the boom at prices sometimes below the market, not to forget him when we bought over next year; therefore we should like you to authorise us to treat with him.
Britannic too is a useful coal, although a shade tender, but its quality is undeniable, and we have never yet heard of a justifiable complaint when it had been supplied for bunkers; even though, as is now nearly always the case, the engineer got no gratuity, for which nowadays most of them are again hungry; and the lack of which we feel sure explains many a complaint from quarters too, where such corruption would be least expected. Would it not be well to consider whether a contract for Large and Small with them might be advantageous? Unfortunately Thro' coal from these pits, as you already know, will not stand the numerous handlings entailed say by the Havre Trade. North's at 24/- plus arrears we think business is possible, but the Agent has rather been taken by surprise at the sudden change in the market, and would like to consult his Board before committing himself to a concrete proposition.
Albion & Ynisfaio. We gave you their ideas this morning. Practically Mr. Andrews now runs both and a mixture of these coals for a general bunkering depot trade is far and away better than either taken singly. Doubtless such combination might permit us to get all our Ynisfaio arrears. Unfortunately Mr. A. is what the Americans call a "tought proposition", but happily we can curtail his activities in through Mr. Cope and in some degree through Sir Wm. James Thomas, both of whom have the warmest of feelings for your firm.
MM. Watts Watts and United National. we can make no headway with these people, largely because their coal is everlastingly being called for by the Naval Authorities; the National for the British use and Burnyeats Navigation for the Allies, who seem to prefer the mixture of Sirhowy & the Merthyr Pits which compose it, and as you know make an excellent blend.
Small coals. Ferndale have set the ball rolling as usual at 17/6 d. Merchants have already sold abroad at 15/- encouraged doubtless by the fact that during several slumps this year it has been sold freely at half that figure. The colliery always stands out for too much and finishes often by taking too little as of yore. We have many factors anent other collieries which we might go into, but we reckon, and the times are so illogical that we may well be wrong that special bituminous qualities excepted, the general price of small coal ought to be nearer 12/- than 15/-. In conclusion we can hear you say after reading this long epistle that it is all very well, but we have not as usual expounded any personal advice, and frankly speaking we rather hesitate to do so, for the obvious reason that no man seemingly can foresee the duration of the war on which naturally practically everything depends. We would point out, however, that whilst the number of men working in our coal fields are enormously reduced the output per man will be still more reduced, because so many of the experienced colliers have joined the Armies, and are being replaced by excellent brawn and muscle but who's mining capabilities are limited in the extreme, and are in many eases an absolute danger to the pits in which they work, so small is their knowledge. Tonnage too is a most uncertain and important factor.
To buy coal too at an overage rise in Secondary grades 6/- per ton is appalling more particularly when there is no guarantee that same can be obtained regularly or when most needed; in fact to do so is practically the biggest trading gamble, the Writer has ever known, and that is saying a good deal. We need hardly say the outlook is causing us great anxiety end shall be most carefully watched.
We repeat, however, that if you do not venture in now plenty of others are keen enough and speculative enough to do so, being absolutely convinced that the War will not terminate until our mutual enemies powers for evil are completely crushed, and small Nations as well as large find themselves once again able to breathe freely without a mailed fist and shining armour being threateningly displayed to their view everlastingly.

[G. W. Moore]

PS. Powell Duffryn. We have during this month tipped 9.007 tons already and have 1.000 tons standing for "Silksworth Hall" ss which may or may not be tipped before mid-night to-morrow.