New-York tribune., 1919-11-20

unless the government is dissolved into
a chaotic condition.
"The people Of the United States are
willing to pay sufficient to maintain
American standards, but the question
is: What are American standards 4?
The people want the operators to have
a just return, but what is just re-
turn?"
DR.. Garfield said he was not vet
prepared to say what changes could
reasonably be made in the price of
coal, as all the necessary data were not
in hand One of the items not yet de-
termined, he said, was that of the
Federal income taxes for 1918, which
the operators have contended should
be included In the cost of operation
The government has disputed this.
Lack Of Scale Board Deplored
DR.. Garfield expressed regret that
the operators and miners had not estab
lished a permanent body to adjudicate
their disputes. Lacking that, he said,
the question revolved around the cost
of production.
During 1918, he said, $1,000 900, 900
was paid for bituminous coal, the aver
age price being $2.61 ton. The pro
duction cost was $2.15 a ton, the
miners receiving $3.50, 900, or an
average of $3.50 q ton. A total of $780,
100000 went to the mine owners, but
DR.. Garfield said this was not all profit,
as Federal income and excess profits
taxes had to be deducted.
"1n 1872" DR.. Garfield said, "the
taxes amounted to 80 cents a ton aver
age over the whole country. but it is
difficult to estimate for 1913. The
taxes in 1913, however, to come out Of
the margins are somewhat less, I be-
lieve. than in 1917, but will continue
my investigation to determine them
accurately"
Miners Not Concerned by Tax
"Do you think the mine workers
ators because they have to pay taxes ?'
asked John L. Lewis, president of the
United Mine Workers of America
"The question is whether the con-
sumner should pay enough to cover the
excess profits tax and at the same time
give the operators their normal profit,
too" replied DR.. Garfield.
"1f the Federal government took all
the profits by taxation, even that cir
cumstance should not prevent the
miners from asking reasonable in
creases," said Mr. Lewis.
"Well, we must bear in mind that the
Lever act guarantees a reasonable
profit on the production of fuel" re-
turned DR.. Garfield. "Of course, Con-
gress is responsible for all tax enact
ments."
Contrasting mining with commercial
enterprises, DR.. Garfield said it was
necessary not to lose sight of the fact
that coal mining was the basic industry
necessary to the winning of the war
and that reasonable profits had to be
| mo nj fot
turn was guaranteed under the Lever
act that Congress could not tax away
all the mine owners profits, he said.
"But the mine workers cannot be de-
TERED from demanding higher wages
and better working conditions as re-
suit OF the Federal tax" Mr. Lewis re-
piled. "That is the governments re-
sponsiblity"
War Calculations Hasty
Replying to William Green, secretary
of the United Mine Workers, DR.. Gar
! field explained the fuel administration,
| in increasing the price Of coal during
the war, had made an allowance of Is
cents for overhead because there was
not time to make minute examination
into every case, and for the same rea-
son 10 cents was allowed as royalty.
Referring to the 45 cents allowed
lor wages, Or. Naiilciu saiu 'HaI WAS
"a crude thing to do" but it was later
found the amount was in the average
absorbed for wages.
Mr.. Brewster told the miners "a
fabulous margin in the coal industry
does not exist" Dr. Garfield's "impar-
tial figures" he said, had srefuted the
reports of enormous profits in the coal
business, which, he said. had been run
on slender margin.
"The railroad company will refuse
to accept or obey the order of the
comm ssion," Colonel William N. Dyk-
man, counsel for the company. an
are confident of our legal right to COL
lect the second fare, and we have no
doubt the court will sustain our posi-
ton"
The company has been charging the
second fare for exactly one month, as
it undertook the independent operation
Of its lines October 19. If the courts
uphold the decision of the Public
Service Commission the company is
open to a suit for $50 penalty for
every excess nickel collected.
President Lewis said the workers
never had alleged the operators made
undue profits in 1918 under govern
ment control.
"But We have made some remarks
about profits in 1919," he said. eve
are prepared to prove that some con,
Germs have sold coal at the mines at
So ton, 81 ton, yes, and even $3.50
a ton. We are prepared to demon
strate that in 1919 the operators have
obtained 120 to 126 per cent more for
coal than they did in 1914, and that
wage increases to the workers have
been only 81 $40 per cent above 1914
| figures, while the cost of living has
increased 110 per cent That's our sit
uation in a nutshell"
Declares Operators Profits Cut
DR.. Garfield said he had no complete
figures on the 1919 operations, and was
suspicious Of partial figures, but he
did have some data which showed that
in certain fields operators were max
ing less in 1919 than in 1918.
"But IL that is true why is it the
selling price of coal to the consumer
has increased 81 a ton this year,"
asked Percy Tetlow of the miners.
II do not know as to that" DR.. Gar
field replied. 0'But even if that is So,
does it enter Unto our problem here
except as it affects the cost Of living?"
"Well, it's question of Importance
to the consumer" Tetlow returned. "Our
figures show that the margin to the
retailer is more than 81 ton on coal.