Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-03-19
PROBE OF COAL MAY
- FIX FAIR PROFIT
IContinued from First Page.1

Mr.. Dodson's letter follows:
Your Excellency:-
From accounts in the public
press of Friday. March 14th. the
Anthracite Coal Operators Associa-
ton, comprising individual opera
ors, has learned that you have writ
ten to the Attorney General request
ing information as to the powers of
the State to inquire into the cost of
anthracite and have suggested that
any lack of legal machinery to make
inquiry and Ito, protect our people
against any unreasonable protiteer-
ing" can be corrected by the present
General Assembly.
"Supplementing our wire of to-
day, permit us to assure you that
we will welcome any inquiry which
fairly will uncover all the facts and
the real truth before the public.
AS you know, our existing prices
of anthracite at the mines-and
these are the only ones with which
we, as mine operators have to do
have fallen rs cents below the fig
ures set by order of the United
States Government. The last in
made under order of the United
States Fuel Administrator and was
$1.05 q ton on domestic sizes, to
cover a wage increase dating from
Nov. l, 1918.
This increase did not meet. the
added burden on the operators, nor
did the two previously granted, and
in many instances led to a loss on
considerable percentages of the out
put. a loss which the operators ac-
cepted for the time as a patriotic
duty toward the Nation, then at war.
This statement is made on the
authority of the United States
Government, through DR.. H. A. Gar
field, United States Fuel Administra-
tor, who not only pointed out the
loss but who clearly indicated that
an increase in prices over those
existing February /, was a matter
of simple justice. In an official
statement lifting the restrictions on
anthracite February l. DR.. Garfield
said:
Garfield Quoted
For the purpose of arriving at a
fair increase in price to cover the
increase in wages recommended by
the War Labor Board last Octo-
Der. an examination was made to
determine the costs of the various
anthracite producing companies. The
result of this examination showed
that the general increases in the
price of materials and labor had
to such an extent that many of the
companies were not receiving a fair
return and that some producers of
necessary coal were actually sustain
ing loss on the sale of coal at
the Government prices.
Had the Fuel Administrations
active control over maximum prices
on anthracite coal been continued.
the cost examination above referred
to shows that it would have been
necessary, on the basis of the pre-
sent wage scale, to raise these maxi
mum prices possibly as much as
fifty cents ton above those last
fixed by the Government in order
to prevent financial embarrassment
and perhaps the closing of Compan-
les producing a substantial per cent
of the necessary anthracite output
During the period of active
Government control, individual op-
orators, whom our association rep
resents, received a fixed price on
domestic sizes 10 cents a ton above
the price allowed to the railroad
affiliated coal companies. With the
lifting OF all restrictions. Feb. 1st,
this differential was naturally elm
mated and the price of coal at in
dividual mines fell 75 cents q ton
below q figure, as DIR. Garfield OFF,
cially said, already so low that many
individual mines had operated at
q loss.
THE suggested increase of fifty
cents a ton on domestic sizes will
mean that the independent opera
tors price will still be 25 cents below
the figure set by the United States
Fuel Administrator during the war
and received up to Feb. 1st, and
IS cents below the limit suggested
by DIR. Garfield in his announcement
as quoted above.
Production Costs
Cost of production must be the
controlling factor in the price of coal
at the mine. We are prepared to
show cost, which are no secret bue
which are on record, for public
inspection, with the Federal Trade
Commission and the United States
Fuel Administration. There are
three main elements-cost of labor,
cost of materials, and royalties. or
these labor is rs per cent. At the
present prices the tonnage of mem
bers of this association, on, full pro-
duction, must bear a loss of 40 cents
n ton. The proposed increase of
ten cents a month on domestic
sizes will only amount to &c cents a
ton above to-days prices, leaving
a net loss of IA cents ton, which