Merl C. Kelce was the youngest of five children in the family of a Kansas coal miner. He left high school for the Oklahoma coal mines at an early age. Starting as a working miner, he rose through the ranks of Sinclair Coal Company to become a Mine Superintendent, General Superintendent, Vice President of Operations, and Executive Vice President. Later, as President and then Chairman of Peabody Coal Company, he greatly expanded Peabody production and reserves and established the company as an industry leader in modern, efficient coal mining and business operations.
At Sinclair, Merl and his brothers, Russell and Ted, provided leadership that guided a small Kansas-Oklahoma operation to a position as third largest U.S. coal producer. This growth was propelled by buying mining companies, opening new mines, mine acquisitions, and mine expansions. Merl sometimes bought mines to get their coal sales contracts, which were shifted to mines with lower costs.
Sinclair was merged into Peabody Coal Company in 1955. In 1957, Merl succeeded his brother, Russell, as President and Chief Executive Officer of Peabody and even accelerated the pace of growth that had been achieved at Sinclair. His trail of acquisitions of coal companies is legendary. Merl knew every facet of the coal business, and his personal knowledge and keen instincts made him a quick deal maker. He could, with little assistance, do a valuation and close within days.
Merl Kelce was a visionary, who transferred the available market to the most efficient mines. He was an innovator who insisted on buying ever larger and more efficient equipment. He insisted on clean, well kept, and safe mines. He opened mines quickly by moving preparation plants, shovels, draglines, and other equipment from place to place. He pioneered the unit train concept, cutting coal shipping time by having a single train move from mine to power plant and back, so time was not lost while cars were shifted in railroad switch yards.
Merl was an aggressive industry leader, who worked closely with the electric utility and transportation industries in providing coal to be converted into abundant and cheap electricity. He promoted long-term coal supply agreements, mine-mouth generating complexes, barge transportation, and private railroads. Peabody operated mines in every major coal-producing region in the United States and also in Canada and Australia. By 1967, Peabody accounted for 10% of total U.S. coal production.
Merl’s was a true Horatio Alger story, and in 1961, he received the coveted Horatio Alger Award. His life dramatically illustrates the basic truth that the free enterprise system allows an individual to rise from humble beginnings to great success through hard work, honesty, and desire.
Merl Kelce’s son, David, followed the Kelce tradition by joining Peabody Coal Company.
