The Washington herald., 1919-11-20
Miners Shown Figures to
Prove Operators Margin
Would Be Wiped Out If
Demands for a 90 Per
Cent Increase Were Met.
GARFIELD WARNS
BOTH TO SPEED UP
Lack of Production Will
Not Be Tolerated by the
Public He Tells Them.
Increase in Price Needed
To Grant Demands.

DR.. Harry A. Garfield. United
States Fuel Administrator, yester-
day told the coal miners and the
operators that the public, as the
chief party in interest in the pres
ent controversy, is not in a mood
to tolerate either excessive prices
or prolonged stoppage Of produc-
ton.
Basic government data on produc-
ton and labor costs, realizatons ana
operators margins in the coal IN
! dustry by DR.. Garfield. with the warm
ing that any average employed should
be taken as a base and not as
figure applicable to any particular
mine or field.
Adkeres TO Policy.
DR.. Garfield said he would adhere
| to his policy OF making no statements
as to what he regarded a proper basis
Of settlement. but taken on their face
the figures furnished by him lent no
support to the miners demand for a
Co per cent increase in wages.
Using 1878 figures. DR.. Garfield said
the average margin per ton to the
operator after deducting the cost OF
! production, including labor. was -
cents per ton. out of which interes.
! charges, selling expense. and Federal
taxes. as well as other items had to
| be paid.
The government estimate of the
| amount per ton paid to labor was
$50. On this basis. If the miners re-
ceived so per cent increase. the in
crease per ton would be 80 cents.
which would not only eat up the
45-cent margin of the operator but
would result in a net loss per ton of
"A cents.
Miners See Joker.
The miners said that there is a
! Joker" in the data submitted by the
government in that it covers low cost
as we'll as high cost of mines. and
! that other notifications should be
made which would show the matter m
a different light.
Beyond emphasizing that the pub
lie demanded an early settlement
and that its interest was para
mount, Dr. Garfield's talk to the
! joint conference apparently con-
sisted in simply submitting data on
the coal industry.
But the differences to be drawn
from the presentation of figures
are significant. If the government
data is accepted then the miners
can be given little or no increase
| in wages unless the government
sees fit to agree to an increase
in the price of coal to the con-
sumner.
I DR.. Garfield's presentation of coal
data shows quite clearly that one
of the reasons the operators have
delayed presenting a counter pro-
posal to the miners is that they
were waiting for him to show the
miners that the government knows
about the costs of producing coal.
Groups In Session.
n,
composed of eight miners and eight
operators. went into conference af-
ter the talk from DIR. Garfield, but
while no proposal was made to the
miners. the conference is to go on
today.
Last night predictions were made
! that the negotiations will fall so far
short of what the miners want that
arbitration will have to be resorted
to. The government officials are
| watching the situation very closely,
| and If this contingency becomes a
reality. the government will then
endeavor to take further measures
| to bring the mines to a higher per-
centage of production.
The data furnished by the Fuel
Administration was as follows.
The total production of bitumi-
nous coal for 1918 was 579.SS5,S2
tons, but for convenience take 5OO.-
600. 900. which will be nearly the
1919 production On this basis the
total bituminous coal bill of the
country was over $1,000. .O0O, 900. This
is at the rate of s2.61 per ton reali-
zation. These figures are f. O. b.
cars at the mines and do not include
freight, commissions or retail mar
! gins.
Production Cost Sc.I5.
The average cost of production
for the same period was S2.15 per
ton. leaving an average margin of
rs cents per ton to the operator.
This margin of 46 cents per ton
includes profit, but does not repre-
sent profit only, inasmuch as inter-
est charges. selling expense. Fed
eral taxes. both normal and excess
profit. as well as certain other
ooNusUED ON PAGE TWO.