New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-02
Secretary NageI Tells Congress
Coal Trust Made Enormous
Profits as Result of Last
Years Strike.
MADE PUBLIC PAY DEARLY
Investigation Refutes the Com
panies' Claim of Necessary
Increases, but Holds Out No
Hope of Relief to Con-
sumers This Year.

sumers This Year.
From the Tribune Burcaul
Washington. March 1.-That the an
thracite coal companies have reapcd
vastly increased profits since the strike
of May %. 1912 and that the increase
of wages for the miners represents only
ne-thrd of the sum exacted from the
public by the coal trust is the sub
stance of a report sen; 10 the House
to-day by the Secretary Of Commerce
and Labor. Mr. Nagel
The report is the result of an in
yestieation If the anthracite coal COM
taken in compliance with the Difen-
derfer resolution. passed by the House
last July. This resolution. introduced
by Representatiye Dfcnderfer follow
ing the exposure in The Tribune of the
the Department of Commerce and La
DOR To investigate the benefits TO the
miners under the strike agreement and
the extent To which the miners had
profted in comparison with the in
creased profits of the coal operators.
Secretary Nagel reports that in
money the strikers have received about
81 100000. while the increase of coal
prices TO the consumer has brought the
companies approximately S13. 10000.
The higher prices for coal. il il pointed
out. were exacted largely on the theory
that the strike agreement made such
increases necessary. Mr.. Nacel's re-
port H. a rcfutation of that statement
The Secretary, in transmitting the
report Of the Acting Commissioner OF
Labor. Mr.. Hanger says that practi-
cally all Of the coal companies In the
anthracite region were examined. II
is shown that the increases at the
mines have been felt In the retail cen
tres. such as New York. Philadelphia
and Washington
No Hope for Consumers.
The Secretary holds out no hope for
the consumer. and the report indicates
that the high prices of 1912 will con-
tinuc through 1918.
The reasons presented by the an
thracite operators for these increases
% hA sss.r hat
they were necessary TO cover the adj
vance Of wages of their employees.
amounting TO between = and 10 cents
ton. under the agreement Of May 20,
1912. and also the various increases in
the cost OF production which have
taken place between 1902. the date OF
the general increase. and 1917"
II is stated that the benefit to the
increase in wage rates and the con-
cesson of certain working conditions
which are important but cannot be
measured in money. as well as par
iial recognition of their organizations.
The advance OF 80 per cent in mine
workers wages represents an increase
of from s To ~ cents ton in the cost
of producing coal" Says the report.
and on thc basis Of The shipments
from June to December. 1872. amounted
i'm round figures to S4,OOOOOO.'
Concerning the vastly greater bene-
fits accruin@ to the anthracite opera
ho
shows that the increase i'm Wholesale
prices. as measured by the net receipts
from sales of anthracite coal by the
operators since the agreement Of May
20. 1912. amounted To an average OF ap
proximately 26 cents a ton. If the prices
from June 10 September, 1911. are com
pared with the prices realized in the
same months of 1912. ON this basis OF
comparison the average increase in the
price of sizes Of coal prepared for do
mcstic consumption amounted to 81 20
cents ton and the average increase
on pea coal and the smaller steam
sizes amounted to 1914 cents a ton.
Discounts Suspended.
The discounts of 80 and 40 cents a
ton customarily allowed on sizes pre-
uarcd for domestic consumption In
ApriI and May. respectively. were sus-
pended in April and May, 1912. NJ
result the operators gained not only by
selling their domestic sizes of coal dur
ING the two months at 40 or 80 cents
moro a ton than during the correspond
ing months of 1911. but in addition the
nurcbascrs who were unable to secure
tbeir customary supply Of coal during
AprIl and May were forced to buy IT
either during June, July or August,
,,ho, tbe discounts were smaller. or I'm
c.ntember and the later months. when
the full circular prices are charged.
"As a result Of these conditions IN
1919 the coal companies received
through the general Increase in prices
and through the suspension OF dis
counts about Si3.4JO.OOO more than
tbev would have received for the same
tonnage at the prices previously cx-
istine OF this amount about xlO,HO.-
UuO was derived from the general in
creases in prices and about 2,jJO,OO0
from the suspension OF April and May
discounts.
"In addition, limited number Of op-
orators received very large sums