The war in Europe contributes to the high price of coal in Shanghai in that the war caused a world-wide increase in shipping rates. Before September 3 the price of Indian coal, landed in Shanghai, was roughly $64 a ton. At that time the time charter rate of shipping was nine shillings a dead-weight ton but now that rate has risen to 22 shillings and added to the fact that it takes about 50 days to make a round trip from Shanghai to Calcutta the freight price on one ton of coal has increased to the present abnormal figure of $145.
The coal actually costs about $36.50 a ton in Calcutta and this, added to the $145 required for freighting each ton of coal, plus $6.50 importer's commission, $6 customs duty in Shanghai, $3.50 landing charge, 88 lost weight and $6 delivery charge makes a ton of coal cost the dealer $212, delivered to his coal yard. Of course the coal dealer is not in the business entirely for his health and he tacks on about 5 per cent. for his modest share, which brings the total to over $220, the sum the consumer has to pay for coal when it finally reaches him.
But it will not remain long at this price. It is significant to note that during the Great War shipping rates rose as high as 52 shillings a deadweight ton, which is over twice as high as the present figure of 22 shillings, and shipping men believe that rates will climb as high as they were during the last war.
If the war in China ceased, the price of coal, in time, would have a substantial decline because the short distance over which the coal would be freighted would have a negative effect on the shipping rate. For example, it takes 50 days to bring a cargo of coal from Calcutta to Shanghai but a cargo from some China port, such as Tsingtao, could reach Shang-in three days. Even if the China ar did come to a halt, experts figure that it would take fully a year before sufficient coal could be brought to ; oft coal and as long as industry keeps booming there will be a demand for fuel. Biggest consumer of coal in Shanghai. is the Shanghai Power Company, whose power plants eat up almost 700,000 tons of coal each year. By agreement with the K.M.A. the power company obtains 300,000 tons from that firm at something like $46 a ton, but the balance, almost 400,000 tons, must be obtained elsewhere at local market prices. The S.P.C. has contracted for coal up to June of this year, but if the price rises higher after that period, the rates for bulk power supply will necessarily increase also.
As far as local merchants are concerned, dealing in coal these days is a risky business, and the dealer has 1o take all of that risk. A dealer has to advance about $800,000 to order a shipload of coal from Calcutta. Naturally it takes time to place the order and charter a ship and by the time the coal is on its way to Shanghai, hostilities in China may cease, thus causing a sudden psychological drop in the price of the commodity, and the dealer would have to sell out at a loss.
Things Look Black Indeed, things continue to look black in the coal industry, and that's no pun either. At least as long as the Calcutta market remains open Shanghai will be able to get coal, whatever the price, but it will be recalled that Curing the Great War there was a government ban on the export of coal from India. The price of coal in India has not increased much since the war began, but there have been no demands upon Indian industry similar to those of the Great War, and it there should be a call for India to expand her manufacturing facilities, it might result in the shutting off of India as a source of coal. Even now, local coal merchants are studying ways and means of importing coal from the United States at a price which would meet the present cost of Calcutta coal.
There is a certain bitter irony about importing coal to China when one realizes the amazing mineral wealth of this country. In certain provinces railways are laid on beds of coal while in others whole stretches of highways are cut through seams of coal and the excess material thrown up in piles for miles along the road, to lie untouched. Truly a case of carrying coals to Newcastle. on Communist centres on Saturday, according to the Stockholm radio station.
"The Chief of Police," the wireless report added, "stated that among the finds was a manual on strategy and tactics for the coming revolution. Codes and evidence of espion: age activities were also discovered."
The first hurried examination of an enormous mass of documentary material, seized by the police in Saturday's swoop on various Communist premises. leaves no doubt in the minds of the police of the treasonable activities of the Communist Party in Sweden, according to the newspaper Nya Dagligt Allehanda.
Among the places raided was a villa settlement, 12 miles from Go-then burg, which is said to hâve been used as a place of refuge for Communists whose positions with the police were Irregular, or for foreigners who were not properly registered.
Of the numerous persons detained in Stockholm, only five now remain in custody, the newspaper adds—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.