Evening journal., 1920-04-03
| COAL PROFITS
COUP MILLIONS
Figures Show Price Increase
Will Give Big Gain Over
Cost of Wage Advance
CONSUMERS TO
PAY THE BILL

WASHINGTON, April 3.--The govern
ment's peaceful settlement OF the
bitumInous coal controversy Stands 10
cost the American consuming public
anywhere from $780,, 1000 900 to 100000
annually.
That has become apparent with the
increases In the price of soft coal
ranging from 81 25 to 81 ton, decreed
by the coal Industry throughout the
United States since the government
price regulations were removed on
April
Coal operators and dealers place the
blame for the situation upon the 2I per
cent. increase in miners wages awarded
by President Wilson's coal commission.
while the miners, dissatisfied with the
award. state, with the facts and figures
undoubtedly In their favor, that the
amount OF the price advance Is wholly
unwarranted by the wage Increases
The careful estimates Of the coal COM
mission, based on the best figures avail
able, show the 81 per cent. wage adj
vance as additional production cost TO
the operators Of $1,000, 100000 annually.
But in the 81 per cent Is included the
Harry A. Garfield. formerly fuel admin
lstrator, and view by him upon the ex-
haustiye coal-cOst records OF the admin
istration as wage increase which
could be absorbed by the operators
without an advance in price. The "a
per cent. advance would mean an adj
ditional annual production OF cost Of
SOC. 600 900. so the operators are entitled
tcI -.
vance coal cost TO the public OF only
sio4.000 0eO0 annually.
But the government. did not s.1nd
back OF the finding OF Dr. Garfield
Eager 10 end the strike. A. Mitchell
Palmer. attorney general, and Joseph
p. Tumuiy. President Wilson'S sscrt-
tary, made The neNv-famous agreement
with officials OF he United Mine
Workers which resulted In the appoint
uent Of the coal commission.
Also, iho government did not stand
back Of the coal commission. While II
accepted the majority opinion OF the
commission az an award upon which
the miners and operators have made
iwo-year contract the President and his
advisers in the administration refused
The suggestion Of the commissioners
that government prices be mainta ned
until the coal shortage situation cleared.
Government prices were taken off on
April and all coal restrictions removed
excepting those on export coal. The re-
suit has been the enormous nationwide
increases In the price Of coal and no
relief in sight
In their protest against the miners
original demands for 60 per cent. in
creases In wages, six-hour day and
nveday week the operators estimated
The increased cost to the consumers -
si.03i .9s3,776. But the miners VIII get
nothing like their original demand in
the settlement ON The basis OF q per
cent wage increase and no change from
the present eight-hour day and six-day
week.
Here is the way the advances In coal |
cost now proposed by the operators and |
dealers work out:
The normal consumption OF bitumI-
nous coal in the United States is close
10 500,000.000 tons. so an advance In
price Of 81 % a ton ordered into effect
IN Philadelphia and other places will
amount to S625,000.000 annually, while
the Increase N the production cost OF
the coal industry IS only 300 001. 900
FOR the entire q per cent. 'Na9e in
crease. or si0i 100000 n the GARFIELD
IL per cent. Is absorbed by the minc IN
teresis In other words. on an Increase
Of si.25 a ton, the coal industry pro-
poses 20 increase It's proills from s.25.- /
100000 b s52i 10000 annually.
Coal dealers IN Washington today an !
nOunced price advances OF 81 ton. a
basis which would increase the gross
profits fthe coal industry sfOoO.00O 900 /
and net If not less than sso0,OO0.000.
NEW YORK, April 3.--Responsible |
1itumInous coal operators will con I
Tenn any unwarrantablc price and any
'ro'teerlng policies" Thomas T. Brew
ter. chairman OF the scale committee
II the biiuminous coal operators. de-
'lared In statement issued here.
"Insinuafions that the coal operators
ire going to gouge the public because
4 the recent 27 per cent advance in
wages, as put out by the United Mine
Workers spokesmen IN the guise OF
protests in the public interest, are sheer
said Mr.. Brewster.
During the coal miners. entirely
unwarranted and unlawful cessation
from work. all stocks OF coal were de-
pieted and shortage ex SITS throughout
me country. The replenishing OF stocks
mas been retarded by serious coal
shortage. Consequently. large consnm-
ers OF soft coal are competing for the