Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-11-19
81. 100000. 600 for Soft Coal in '1s

Sl.5U per ton. y total of S23O,00o,oDO
went TO the mine owners. but DR.. Gar
field said this was not all profit, as
federal income and excess profits tax
had to be deducted.
in 1917" DR.. Garfield continued.
the taxes amounted to so cents Il
ton average over the whole country,
but il is difficult to oSti;T ate for f"S.
Tne taxes in 1918, however, to come
out of the margins are somewhat
less, | believe. than in 1917. but !
will continu" my Investigation to de
tcrmine them accurately.
Lewis Queries Garfield.
should give consideration 10 the OPP
orators because they have to pay
taxes" asked John l.. Lewis, pres
dent Of the United Mine Workers.
The question is whether the con-
sumner should pay enough to cover %
excess profits tax and at the same
time give the operators heir normal
profit, too" replied DR.. Garfield.
IF the federal government. took all
the prof by taxation. even that CIR
cumstanCe should not prevent t'e
miners from asking reasonable in
CreaSeS." said Lewis.
Well We must bear in mind that
the Lever act guarantees rca son,
able profit on the production OF fuei.
returned DR.. Garfield. congress is
responsible for ali lax enactmentS
Status as Basic Industry.
Contrasting mining with CONNER
ella, u,,,,..Ses Dr. Garfield said 1t
was necessary not to lose sight OF
the fact that coal mining waS t"e
basic industry. necessary 10 r"' W y
ming of the war. and that reasonable
profits had to be ma .ntaineu. 1t was
because n fair return was guaranteed
under the Lever act that Congress
could not AK away all the mine
owners profits, he said.
deferred from demanding higher
wages and better conditions as
result of the federal tax. Mr. Lew s
replied That is the government
responsibility
kenIytur 10 Wiiia,- |r~or eo~~'-
tary of the United Mine Workers. Dr.
Garfield explained that ,hc 4.SI 49,
ADMINISTRATION in increasing the pri''
of coal during the war had made an
allowance of Is cents for overhead
because there was not time to make
a minute examination into every case
and-for the same reason 10 cents was
Referring to the Is cents above
foi -,-.,c-, Dr. CARRIED said that was
"a crude thing to do" Dut that i.
was later found that that amount was
in the average absorbed for wages.
Thomas T. Brewster, chairman
the operators scale committee. toi6
the % IS That "a fabulous margi.
in the coal industry did not exist
Dr. Garfield's impartial figures" he
SAID, had refuted the reports of
urmous pref he 'oai s.""sS
which. he said. had been run on a
slender margin"
After DIR. Garfield finished his main
Address, Mr.. Lewis maue :. snort s,ate-
ment.
Statement of Mr.. Lewis.
II call the attention of the chairman
to the fact that the workers nexers
have alleged that the operators made
undue profits in 1918 under govern
ment control" he said. we don't
qL, stion DR. Garfield's figures. The
only way that they made more was
thas ney i, oduceu more coal.
"fpt we have made some remark s
about profits in 1919. We are pre-
pared to prove that some concerns
me mines at So
y ton. 81 ton-yes, and even $3.50 a
!. toni We are prepared to demonstrate
chat in 1919 the operators have got
.iI,ie Iof coal
J. ii ~ 1914 and that wage
increases to the workers has been
only 81 $40 per cent above 1911 u
L. s. nae The cost of living has
increased 10 per cent IN the mining
O. That's our situation in a
nutshell"
~. .arfield said he had no COM
plo r nga'res on the 1919 operations,
and: was suspicious of partial ii. ei-
butsthat he did have some data which
showed that in certain fields OPP
in 1918, though prices on a portion
adj lucr eased sharp
ly during October.
-. go. - true. why is it that
the selling price of coal to the con-
sumner has increased 81 ton this
year," asked Percy Tetlow, statisii-
clan for the miners.
II do not know as to that DR.. Gar
field replied. But even if that is so,
does il enter into our pros lem here
except as it affects the cost of living
"Important to Consumer
We'll, it's a question of Importance
to the consumer" Tetlow returned.
"Our figures show that the margin to
the retailer is more than 81 ton on
coal. /; is important that the pubhc
be protected. We realize that one OF
the greatest problems is that of the
profit that is added to coal after IT
leaves the mine, and that the pro-
Queer is not receiving q fair proper
ton of what the consumer pays.
Operators and miners of the New
River district of West Virginia will
meet Assistant Attorney General c. 3
Ames here tomorrow morning. Rober,
Gilmour organizer for the United
Mine Workers, announced this after
noon.
.HThe operators claim the walkou'
on November / abrogated the con.
tract under which the men were work
ing and have refused to take back
the union men," Mr.. Gilmour said
THE effect of this would be to create
an open shop"