The Birmingham age-herald., 1919-11-26
VIGOROUS DENIAL .OF M M'ADOO CHARGES BY GOAL OPERATORS.
Birmingham Men Claim Profits Far Below Those Stated by Former Sec
 retary of Treasury

Birmingham coal operators
 deny the charge of former Sec
 retary of the Treasury William | G. McAdoo, published in the newspapers yesterday that bituminous coal operators made profits ranging from 300
 to 2000 per cent on capital in-
 vested in 1917. They claim
 that their profits were far be-
 low the figures mentioned by
 the former secretary, not even
 approaching the lowest rate
 stated.
 Discussing the statement several op-
 orators said yesterday that statements
 taken from their books were furnished
 the national fuel administration during
 that time and that the prices of coal
 we're based on the figures then pre-
 scented, It was shown that profits av-
 eraged 46 cents on the ton out of which
 income and excess pronts taxes, state
 taxes, and interest had to be paid.
 Referring 10 MT McAdoos statement Frank V. Evans said;
 William G. McAdoo, erstwhile Secre. tary of the treasury. who flew away from tke storm when the clouds were ] thickest. now an alleged candidate foi
 the presidency. comes into the lime light from his hiding place picture snowman, by taking a hand in the con troversy now pending between coal miners and operators.
 The object of Candidate McAdoo's sudden appearance upon the stage is evident, The ex-secretary charges that the bituminous coal operators
 make profits from loo to 300 per cent on their invested capital stock. Yes further than that he places the profit as high as 20o0 per cent in 1917. The best answer to this shocking and indefensible' statement by the presidential candidate is the following data furnished by the United States fuel administrator in an address deliv- cred one week ago. That official said "The total production of bitiminous coal for 1918 was 579,3S5,s s20 tons, but for convenience take 500 0000, 900 tons which will be nearer the 1919 produc- ton.
 "'On this basis the total btiminous coal bill of the country was over $1.300,- ] 900 GOO. This Is al the rate of $2.61 peI 1 ton realization, These figures are flo. b l cars at the mines and do not include I freight, commissions, or retail mar 1 gins.
 The average cost of production fol the same period was s2.15 per ton. leav- | ing an average margain of 46 cents pei | ton to the operator
 l This margin of 46 cents per ton in cludes profit but does not represen 1 profit only, inasmuch as interes l charges, selling expense, federal taxes | both normal and excess profit as wei as certain other items not allowed il 1 computing costs of production, wer' | paid out of it.
 THE COST OF PRODUCTION or the cost of production, approx 1 imately 30 per cent went for supplies and general expense, while substantial | ly TO per cent, or s1.50 and fraction | per ton, was paid to labor. The total 1 therefore paid to labor on an assumed l 300. 100000 tons was in excess of s75o, l 900, ,000
 l "'Assuming the same tonnage the 4 cents per ton margin to the operators represents total sum of s230,000,0 900 | The foregoing figures are for the en 1 tire country, Those for the centra competitive field only are as follows; Year 191S--