The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-12-01
COAL men DENY REPORT /.
OF FABULOUS PROFITS

J. D. A. Morrow, vice-president Of
the National Coal association tonight
made public an open letter to Secre-
tary of the Treasury Glass which IL In
reply to the informal statement given
out by Secretary Glass Friday Of data
on the profits of bituminous coal OPP
orators The data was furnished the
secretary by experts Of the internal
revenue bureau.
Mr.. Morrow's reply says in part
The memorandum Is apparently
based on n casual inspection of the
returns of certain Individual coal COM
panies. From these individual in
stances the impression Ii clearly given
that the industry in 1917 made fab
ulous profits with average returns
on invested capital of from 100 per
cent to $50 per cent. 1t Is true that
the foregoing statement refers only
to the opera tors east of the Mississip-
nj, but they produce nearly 20 per
cent OF the total bituminous output.
Certain individual concerns may
have made such profits. but not tle
industry as a whole. and as the fuel
administration has pointed, fairness
demands consideration Of the industry
as a whole, 4, ,@sx ssk
For the entire bituminous indus
try in 1917 to make profits of from
100 per cent to $50 per cent on in
vested capital. would require a total
profit of upwards of $500, 900. 900.
According to the United States geologi-
cal report, the total gross receipts OF
the operators for all the bituminous
coal produced in 1917 was only ST.
24s.272,s37 Hence the total gross re-
ceipts, before deducting opera ding ex-
penses, were less than the total profits
which would have 10 be made out Of
those receipts to justify the statcrle MT
Of your experts, This indicates the
ridiculous nature of their casual gem
civilizations.
The statement respecting the
profits in 1918 is even worse The
memorandum saws that in 1918 PROFITS
We're generally reduced Is per cert
to 30 per ceng less than for the pro-
cedinE year. Iii other words, they
must have averaged from rs per cent
to 100 per cent This would mean to-
nelghborhood ~ $3.50, p9e, GOO 10 ST.
200, 0D0 600
EXACT INFORMATION.
fortunately or November 10. tho
fuel administration issued exact In
formation on this subject II stated
that tor the year i5tS the average
gross margin realized by the oitutni-
nous producers WAS sc cent i per ton.
out OF which interest charges. self
ing expense. federal taxes, hotn
normal and excess profit as welt as
certain other Items not allowed in
computing costs. were paid before
any profits remained,
According "a the United States
geological sarvcy the total production
under 5S0.ooa, 600 tons. a gross mar ,
gin of as cents on this tonnage
amounts 10 ss66,s0o 900, most OF
which WAS not profit This statement !
of the fuel administration was given
to the newspapers, had been public !
and attracted wide notice more thans
"a week before your exports had you /
their memorandum indicating that the |
pretits in 1918 were from three To j
Ave times the total gross margin ac- !
tuitiiy realized by the operators dur
ing the t(rs1e thar the United States
fuel administration was exercising d
careful aud exact coatrol of prices
y know that you wish 10 be fair to |
this industry as we'll as TO all others I
Therefore. AS q correction TO toe me- /
morandum Of the 2Tth j respectfully /
request that YOU publish the aver i
age per cent of profit on capital in /
vested both before and after paying /
federal taxes, kor the hituminous in
dustry as q whole. 4 cotnns1 gfspn Of !
profits in this industry with those i'm /
all other industries Is necessary il you I
mean TO set forth faIly che aspect of
the hituriuous coal mining industry.
| must therefore further respectfully
request that at the same time you
publish for thu other Industries their
acreage prrecntag" IF profits both /,
before aaG after federal taxes have 4
been patd. Il
Whether the coal producers car
now absorb out ef their profits Largo
wage increases IS To be determined
not With regard 80 conditions of two
pr three years ago, but with reference
10 present conditions u is we'll
know that in 1919 prices have been
lower, costs higher and margins mach
s.sfs ssss- Die =
profits having entirely disappeared