The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1917-07-12

WASHINGTON, D. C., July -
What is pronounced by members OF
Congress = Senators and Representa-.
tives alike-as the best, most inform
ing and failest exposition of the coal
situation in this country, was Congress
man Edward Cooper's speech on that
subject. 1t has become the standard
guide and text book of the members,
and the fact that 1t is known that Mr..
Cooper is a large coal producer and
has spent his life in the business mas
served to make his speech authorita-
tive with not only the men IN ootn
legislative branches, but with men out
side who are attempting to deal with
the subject Of fuel supply and produc'
ton.
At the outset, Mr.. Cooper has told
Congress something Of what the coal
business means to West Virginia now
and in the future. He lets them know
that he represents a district which
produces, have the total output OF his
state. which was 100000 tons OF
coal last year, an increase of 10000
900 over the preceding year, and q
100000 tons Of coke. That there are
10000 men directly engaged in the
mining of coal in West Virginia. That
over $7O,O0O,00O are annually paid cut
in pay rolls. That every mile OF rail-
road except one short branch was built
into the state for the sole purpose OF
hauling out coal. That the very life
of the state depends on the coal indus
Try, and only 2 per cent. Of the availa-
BILE coal in West Virginia has ever
felt the shock Of blast or the thrust
of pick.
Reviewing the coal industry in which
1,O00,O men are employed in the UNI
ted States, Mr.. Cooper does not deny,
but frankly admits, that during the
past six months money has been made
in the mining of coal in West Virginia
as elsewhere, but he makes the asser'
ton that "the price prior to 1917 was
so low that If the banks OF the state
had called upon the coal companies to
meet their obligations many OF them
would have been forced into bank
ruptcy. Year after year have known
managers of coal companies to be
forced to go to the bank and borrow
money to meet their monthly pay rolls:
Confidence only in the superiority OF
West Virginia coal lead them to con-
tinue to operate their properties and
meet their pressing obligations"
Touching upon some Of the cost con-
ditions of mining, Mr.. Cooper said: "a
coal mine operating in West Virginia
today, after an expenditure OF nun
dreds of thousands of dollars, and aft
er years Of unproductive1ess, succeed
ing at last in placing the mine upon an
earning capacity Of 20 per cent. to ~
per cent, must pay its income tax, It's
capital stock tax, and its excess-profits
tax before it will be allowed to pay
penny in dividends to its stockholders
In making fair allowance for fair earn
ines on the capital stock Of such cor
porations it is necessary to figure the
life Of the property, and unless the
dividends earned will pay fair return
on the capital invested and return the
capital itself within the life OF the prop
erty the investment aRould be consid-
cred a poor one, indeed The danger
Of explosions in coal mining, which
may at any moment wipe out forever
the investment of the stockholders In
a 1coal nine, must be taken into con-
sideration when the question of fair
earnings is considered. Surely, man
who has been Drawing ALL risking life
property, everything to make his bust.
ness a success should be given equal
and fair consideration by the govern
mept."
Failure Of the coal company, Mr..
Cooper AYERS, is not due to failure to
develop coal property. West Virginia's
output was increased $4,000, 1000 tons IN
1916 1t is due to the ordinary work.
tngs of the law of supply and demand
pressed by unprecedented conditions
throughout the world brought about BY
the great war. There never was in our
industrial history such Q demand for
coal from abroad nor such 9 demand
for Il IL home markets, Restricted
tonnage by reason Of the failure OF
transportation caused thousands Of