The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-07-23

them, but he does doubt the bushes;
sense of such proposition or the mora
rlsht OF the legislature to thus hinder
the progress of the state. 1t will smack
much OF an invasion of the sacred
rights of property.
The Alabama coal and iron industry
| is new, compared with the same in
dustry in other states, and is confront
ed by well developed and strong COM
| petition in the older districts which
nave natural and acquired advantages
Iar superior to those possessed BY the
Alabama interests. This competition
consists of the thicker seams of Ken
lucky, Illinois. Tennessee and the Viz
! ginias; the cleaner coal of these states
| which needs not the expense of wash
ing. and the fuel oil of the southwest.
| All OF these states exempt coal from
such proposed tax or threat there
! Of
Alabama produces less than six
| tenths per cent of the coal mined in
the United States yet fifty per cent
| of the coal washed in the United states
is produced in Alabama. Whereas. ex-
| cept in few instances, it is not Aeces-
| sary to wash coal in our competitive
| districts. Practically all Of the coal
| in this state converted into coke and
4 practically one-half Of, the commercial
| steam coal must be washed and pre-
pared, involving a heavx cost per tor
| above the cost of running mines. The
| United States Fuel Administration re-
| cognizes this in fixing the price OF
prepared and washed coal in Alabama.
: In the early age of mineral develop
ment of Alabama, coal and iron ores
were mined from near the surface. Ad
vancement made necessary the going
down below the water line, and now
the extraordinary expense of pumping
water has hapn m in
volving additional cost as high as
twenty cents per ton at many mines.
This is accounted for by the peculiar
geological foundations which here exist,
and do not exist in competing fields. The
thinness of the seams of coal in Ala
bama and the numerous partings find
no parallel in the United States, ex-
cept in the Rocky Mountain region
1t has been pointed out that many
of the merchant coal mines of this state
are operated by men Of limited means,
and that margin OF only twenty-six
cents per ton would be seriously men,
aced by tonnage tax and that contracts
often turned to other states on differ
ence of less than a cent per ton.
Under present conditions every ton
of coal produced in Alabama adds to
the wealth of the state Every ton of
coal bought by Alabamians from mines
of other states or consumed by rail-
roads operating in Alabama, detracts
from the wealth of this state. Should
the legislature add a tonnage tax to
Alabama coal, it would strengthen the
hand of competing fields and burden
and paralyze further efforts of the in
dustry in this state, giving to other
states every advantage over this dis
trict in the open market and even in
our own section.
1t must be borne in mind that taxes
are as much the cost of production as
wages. If a tax of a certain amount
per ton is placed on coal or iron ore.
1t would have the same effect as il
the same amount per ton were added
to the miners pay for digging. If such
amount is added to the cost of pro-
duction and cannot be passed on to the
consumer 1t must necessarily come out
of the capital already invested in pro-
perty and equipment which would have
to be depleted in proportion to or to
the extent of the aggregate of such
taxes. II, by reason of such added cost
the market for Alabama products is
restricted, it means that production
will be restricted in like proportion.
If the sale of a ton of coal or a ton
of pig iron, or a product manufactu. ed
therefrom, is lost in competition with
producers located outside of the state
of Alabama, that ton of coal or pig
iron, or product manufactured there
from, will never be produced or manu-
featured in Alabama and the wages of
the labor to produce it will be lost to
the workingman and to the people
with whom he trades and the net value
of the product will be lost to the in
weston who is furnished with the capt.
tai to produce it,
AS stated above. Alabama coal is nat
urally unclean. To reach the great
markets,it must be washed. The cost
of equipment for the washing process
is far beyond the ability of the smaller
OF orator to provide. and this latter class
of honorable and worthy indurtrial
men can depend only upon the local
markets. Add to their burden the ton
mage tax and you will force them to
close down their mines, or turn them
over to the larger and stronger con-
solicitations for absolute suppression.
The harmful effects of this step, which
would be necessary by the proposed
legislation, is self evident.
The coal and iron industries of Ala
bama are not seeking the paternal care
of the state; they do not charge dis
elimination against jefferson or the
other mineral counties of Alabama in
this proposition; they do not believe
the people of Alabama are viciously
inclined against an industrial section
which has proven so potent in the gen
eral wealth production in the state;
but they do feel that certain condi- |
tions and facts were overlooked by
those who propose this onerous burden. |
These facts and conditions are:
Cd Double taxation ca Discour-
agement to capital and labor; (3) The
placing of power in the hands of COM
peting states to deprive Alabama of
the benefits of the markets; ca Par |
alyzing of the smaller operators; CD |
The driving away from the state of
thousands of strong laboring men and
their families, thus depicting the states
populations: (5) The return to sleep of
that once latent wealth which was
quickened by the money and labor |
which is now threatened by the leg
islature.
Alabama boasts herself as an invit- |
ing state. a state rich in natural re-
cources, in minerals, in soils, climate |
and production. She tells the world of |
her immense deposits of wealth of the
millions of tons of coal, iron and other |
which still lie hidden and I'M
touched. of her rich agricultural soil, |
Of her forests of timber and of flow |
ing streams that water the state; and |
she bids capital and labor to come. |
Much of it accepted the invitation, re
lying upon good faith and generous
governmental treatment. VIII not |
the very agitation of this proposed |
burden proposition stop or hinder the |
further acceptance of the invitation? |
Is question to be considered. Let the |
spirit of patriotic inquiry get in motion |
and inquire whittier we are drifting. |
Let us not bring industry and economy |
and law in conflict. The rights OF !
property and of labor must be safe /