The Washington herald., 1919-11-26
CABINET DEADLOCKED
OVER u. S. POLICY
IN COAL CRISIS
CONTINUED FROM PAGE ONE.

CONTINUED FROM PAGE ONE.
There is no question but what secre-
tary OF Labor Wilson, who is the
only Cabinet member who has gone
on record as saying what the miners
should receive in a wage increase.
headed one OF the groups. -
me other side was represented by
those who favor dealing firmly with
tne miners and who think that the
operators in offering the miners a 20
per cent increase have reached the
limit or reason. In this discussion DIR.
Garneld played a leading part as ne
has made an investigation of coal
mining costs and wages independent
iy Of Secretary Wilson'S
Living Costs Figure.
Living costs entered largely into
the discussion. as the operators have
said that whatever increase in wages
might be made would be passed TO
the consumer. 1t is also thought that
third opinion was expressed, to the
effect that the government should
hold itself -aloof and leave it to the
miners and the operators to settle
their differences.
This was the position taken by
the government in the injunction
proceedings when it was stated that
the sole purpose of the government
was to keep the mines going and
protect the public and that the gov
eminent was not attempting to pass
upon the merits of the controversy
between the miners and the opera
tors.
The miners and the operators had
a brief session together during the
early part of the day. which they
said was unimportant. Both sides
said that the coal situation was in
the hands of the Cabinet.
Operators Answer McAdoo.
Hopes were expressed by the op-
orators that a settlement could be
reached before Thanksgiving. The
miners said that If the conference
went on they would not go into ses-
session on Thanksgiving as many of
them intended to go home Thurs
day.
George H. Cushing. managing di-
rector of the American Wholesale
Coal Association. yesterday gave
out a statement criticizing William
G. McAdoo for the latter's state
ments on the profits made by the
operators in 1917.
Mr.. McAdoo has apparently gone
out of his way to discredit the
coal men without stopping to
realize that he is helping the
miners to pin an unnecessary bur-
den of added cost of coal upon
the coal users" said Mr.. Cushing,
No more ridiculous statement
about any business was ever made
by any man of prominence as the
figures will prove.
"All reports to the Treasury
cover a years business. If a coal
operator made a profit of 1000
per cent on the busines of an ac-
tire year. it must be figured either
on his capital or his volume of
business.
If the profit were figured upon
the volume of business the profit
must be twenty times the cost of
production. The lowest cost OF
coal I have ever known was 81 a
ton. Using that low figure as the
basis. the profit on every ton OF
coal produced by the operator in
1917 must have been $40.
This must mean that some mine
has sold its entire output at an aver
age price Of S21 ton. t. o. b. the mine.
Not a single ton of coal in all Amer
lea sold at that price. And no COM
pany in America averaged one-fifth
Of that price in 1917.
The only other way the operator
could make 1000 per cent was on his
capital stock"