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FEDERAL REGISTER, coal produced in District No. 9. The coal from seam No. 9 is fairly soft and it is suitable for steam and domestic purposes but it is not a special purpose coal. The coal from seam No. 11 is very similar in many respects to the coal from seam No.
9 when it is properly prepared except that it has a parting in it which is not pres ent in the coal from seam No. 9 and this coal is also suitable for steam and domes tic purposes. The coals from seams No.
9 and No. 11 are more or less uniform and are generally classified alike. The coal from seam No. 6 is rather soft in struc ture but due to its peculiar characteris tics it is used fo r steam, domestic and stoker purposes. The coal from seam No.
14 is firm in structure, is the hardest coal in the District, has a distinctive ash of pinkish color, and is generally used for steam, domestic, and stoker purposes.
The approximate tonnage of coal from mines in District No. 9, distributed by the producers therein in 1937, is reported in Exhibit No. 691 as 8,063,453 tons of which 7,729,422 tons or 95.85 per cent were moved by rail and 334,031 tons or 4.15 per cent by truck. It is also shown in the order of volume by specific sizes and classifications that 2,118,536 tons of size 21 Class C coal or 26.27 per cent of the total, 1,359,845 tons of size 16 Class C
coal or 16.86 per cent of the total, 1,090,553 tons of size 4 Class C coal or 13.52 per cent of the total, 585,511 tons of size 8
Class C coal, or 7.26 per cent of the total, and 519,821 tons of size 2 Class C coal or 6.44 per cent of the total were then dis tributed from those mines.
The consuming market areas for the coal produced in District No. 9 are listed in this schedule by states which are:
Kentucky, Tennessee, Alabama, Missis sippi, Louisiana, Texas, Arkansas, Kan
sas, Missouri, Nebraska, Iowa, North Da kota, South Dakota, Minnesota, W is consin, Illinois, Indiana, and Michigan.
The prices proposed are one price into all market areas.
-The schedule of the District Board proposes twenty-one size groupings from Size Group No. 1, lump coal 7 " lump or larger to Size Group No. 21, run-ofmine, any size resultant over 3 " no fines removed which includes 34" x 0 ", 4 " x 0", 5 " x 0 ", 6 " x 0 ", and 8 " x 0 ".
All of these size groups are fully de scribed in Exhibit 690. TTie sizes, which were comparable competitively and which could sell at the same price, were grouped together into one size group.
These various size groups have been de termined as a result of familiarity that the members of the District Board had with the various operations in the Dis trict and with the methods used for the preparation of coal at each mine, mar ketability and consumer acceptance, and belief that they would not only meet the requirements of each code member but also permit the continuance of all sizes which were being produced in the District.
In determining the proposed varia tions, or differentials in price among the No. 26--- 2

Wednesday , February 8, 1939

various size groups in the schedule, the District Board used a 3-inch lump in Size Group No. 4, a 3-inch, by 14-inch nut in Size Group No. 8 and 14-inch screenings in Size Group No. 16 as base sizes. These specific sizes in the base size groups were used as a starting point and were related as to price to one another according to the practice in more or less regulated markets, and from these three base sizes the compara ble values of the various sizes were then worked out and a price placed on each size in proportion to the base coal. A
definite charge for subjecting coal of specified sizes to any chemical, oiling, waxing, or washing process was deter mined by the District Board because such treatment of the coal enhances its value and because the charge for such treatment is customary page 1 of Ex.
690; page 4 of Ex. 691. It also deter mined the price differential for a num ber of producers who are unable to make all sizes of coal at their small rail mines that would enable such producers to market a 3-inch lump coal in compe tition with 6-inch lump coal and other sizes in proportion. These proposed price variations or differentials among the various size groups were determined by the District Board after it had con sidered the market practices and the customary differentials and the ability of the code members to market their coal in common consuming markets.
In classifying the coals within each size group as to quality, the District Board took into consideration the anal yses of the coals, the seams from which they were produced, the methods em ployed for the preparation of them at each mine, and the marketabil ity and the consumer acceptance. Prom the analyses, it was determined that the coals produced from any one seam were generally uniform in quality. Wherever preparation of the coals improved their quality, such coals were classified accord ingly higher.
In the schedule proposed by the Dis trict Board, the letters are indices as to the price in each size group. The prices are based on the variations in the quality of the coal. The letter A represents the highest priced coal in each size group, and the letter B represents the next highest priced coal in each size group and the letters C, D, E, and F, each in descending order, represent a lower price coal in each size group, ex cepting only coal classified E in size group No. 4. Coal from seams No. 9, and No. 11, was taken as a base for the qual ity classification and was generally clas sified C in the schedule, and, with some exceptions due to any variation in qual ity occasioned by preparation of it, a uni form price was proposed for it because of the uniform characteristics of the pre ponderant tonnage o f coal from these seams and because of the market prac tice for years both in the regulated and unregulated market. The coals from seams No. 6 and No. 14 are generally
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coals of higher quality than the coals from seams No. 9 and No. 11 due to their peculiar characteristics. The proposed minimum prices of the coal classified as C in size groups No. 4, No. 8 and No.
16 were used as bases, and the proposed minimum prices of the other kinds and qualities of coal were determined by re lating them to the prices for these base coals. In that connection, the District Board took into consideration the physi cal characteristics, such as hardness and noticeable structural peculiarities, and the uniformity of the quality of the coals as appears from the analyses that were made by the U. S. Bureau of Mines from samples taken at fifty rail mines that produce 94 per cent of all the coal pro duced in the District. A copy of the re port on these analyses of coal was re ceived in evidence as Exhibit No. 692.
Mine run coal from all mines in the Dis trict, whether washed or ufiwashed, was given a uniform quality classification be cause of its marketability and consumer acceptance among on-line railroads, its principal users.
Subsequent to the adoption of the schedule by the District Board and of its submission to the Commission, the Dis trict Board, at a meeting held on No vember 8, 1938, adopted an amendment and supplement to such schedule con taining all changes in price classifications due to the erroneous classifications and omissions previously made therein through oversight and clerical error, and submitted such amendment and supple ment to the Commission with the in struction that the changes be treated as if they had been originally inserted in said schedule. These changes affect the price classification of forty-one pro ducers in the District that are named as code members in said schedule shown as Exhibit No. 690, and comprise one in Size Group No. 7, thirty-three in each of Size Groups Nos. 10, 11, and 12, six in Size Group No. 15, and one in Size Groups 1 to 21, inclusive. A copy of the amend ment was received as Exhibit No. 693.
The total tonnage of the various classi fications and size groups of coal of Dis trict No. 9 based on the distribution thereof will yield an average realization of $1.7782 per ton which was computed by applying the prices proposed by the District Board to the tonnages of coal reported in Commissions forms D - l and D-2 for the year 1937, broken down into size groups and classifications. The re port containing data on this realization was received in evidence as Exhibit No.
691.
And now, therefore, upon the record in this cause, upon the evidence both doc umentary and otherwise, on file with this Commission, and upon the above and foregoing facts found to exist, we find:
7. Protest A t the hearing the Sentry Coal Mining Company filed a protest and adduced testimony relating thereto. This protest was directed against: 1 a proposed