Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-13
GOVERNOR CHARGES
COAL MEN SEEK TO
EvADE INCOME TAX
Indiana Executive Alleges
Many Companies "Pad"
Their Accounts.

CANNELTON, Ind. October 10
"Afany operating accounts of coal
companies are padded for the purpose
Of avoiding the federal income tax.
said Gov James P. Goodrich of In
diana, in an address at good roads
meeting near here today. in discussing
orders of the special coal and food
commission. which recently fixed coal
prices in Indiana. He declared that
if the mine operators of Indiana con-
tinue their refusal to furnish coal
upon the order of the commission "all
facts in the possession of the COM
mission will be given to the public
Discussing the assertion of Phil II.
Penna secretary-treaSurer of the In
diana Bituminous Coal operators AS
sociation. that the mine owners have
no intention of complying with the or
ders of the commission. the governor
said that men in Indiana, who before
the war were content with salaries
of $4,000 to $4,000, were now drawing
$4,000 and $4,000 for managing
mines.
Facts Concealed, He Says.
II don't think Penna or any one else
connected with the operators asso-
citation wants the inside facts laid be-
fore the people of the state. said
Gov. Goodrich, who himself is coal
mine operator.
After discussing the origin of the
special coal and food commission,
Gov. Goodrich said. in part:
The action of the operators in de-
flying the orders of the commission
and the prices they are seeking to
charge for coal in Indiana have set
tied beyond question the fact that
neither the coal operators nor any
other group of men can safely be
trusted to deal fairly with the public
when the fixing of prices is left en-
tirely in their hands. as is the price
of coal at the present time.
THE commission has fixed a price
that is liberal and under which any
mine that has right to operate can
paid agent of the operators association.
makes the statement that twenty-nin
mines in Indiana cannot operate under
the prices fixed by the commission. All
these twenty-nine operators have to do
in order to get relief is to go before the
commission. show their costs, and if the
facts indicate that the rate is not high
enough as to their particular mine the
commission will undoubtedly modify the
order.
Hits Inflated Salaries.
1.-The truth of the matter is that many
VI dlc OpcIdtiuS dCCoullS VI lHt COAL
companies are padded for the purpose
of avoiding the federal income tax. Men
in Indiana that prior to the war were
content to serve at a salary of from
$4,000 to $4,000 year are. in some in
stances. drawing $4,000 to $4,000 a
year to manage mines in this state. l
don't think Penna or any one else con-
nected with the operators association
wants the inside facts laid before the
people of the state. If the operators. as
Penna indicates, want to pursue the
same public be- damned policy that
brought the liquor business to it's end
and has driven the public to drastic
regulatory measures in the control of
other business as to protect the people
from extortion, the responsibility lies
with them.
zone thing is certain: If the opera
tors persist in their refusal to furnish
coal to the people of the state upon the
order of the commission. all the facts
in the possession of. the commission will
be given to the public. 1t is for the coal
operators to say whether or not it will
be necessary to take further steps in
order to protect our people"