The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-07-03
RAILROADS own :.
COAL INDUSTRY
United Mine Workers Expose
Pfttkeefhg and Methods Of
Hard Coal Trust. ..
Continued From, Page One.

Continued From Page: One.
transporting anthracite and the rate
charged by the railroad. and between
the total cost of the anthracite before
it is delivered to the dealer and the
price at which it is delivered to him,
which are to all outward appearances
no more than average;
1T is, therefore, unjustifiable to
claim on the basis of such margins as
are exhibited particularly in the pro-
duction end of the business) that the
anthracite industry cannot pay higher
wages without increasing the cost;
The anthracite industry made up
of these seven distinct railway sys-
tens is closely knitted into a. single
great monopoly by inter-stock owner
ship, by interlocking directorates, by
informal conferences, and in general
by the engrossing control of the great
New York banking combine which
centers about J. P. Morgan & Com
pany and the National City Bank.
This group dominates companies
shipping over IS per cent of the total
anthracite tonnage. These bankers ap.
parently controlt the situation and
reap the benefit through dividends on
watered stock as we'll as through mill
lions Of dollars of interest on bonded
The conclusions dawn from this
study seen, to be that as the result
of the combination which has been
achieved, we must. loo X. for anthracite
profits not in the Golfers Of the coal
companies, but in (aj, the, profits Of
anthracite railroads.; CO., the profits
Of sales companies; (c). the profits Of
those who control the banking COM
bine which has engineered the an
thracite com bination."
The miners buttressed their de-
nands for wage increase and recog-
milton Of the United Mine Workers of
America with a fornidab BILE array OF
data and exhibits covering one thou
sand printed pages. These exhibits
EN- braced every phase Of the authra-
cite coal industry, special emphasis
being laid on monopolistic control and
profiteering in the industry, and in
cluded also survey Of the increases
in the cost Of living. tn the anthracite
Of anthracite mine workers with the
earnings Of workers in other indus
tries and resume Of the sanctions Of
the living wage, the -eIght-hour day
and collective bargaining through
unions.
Profiteering to the extent Of a 500
percent increase in profits for the
period 1868 as .compaped with the.
pre-war period of 1912-14 was charg-
ed by Mr.. Lauck. the offender in this
instance being The fhlladelphia. and
Reading Company "This company,
which had no selling device for con-
cealing its profits" said Mr.. Lauck
Increased its production only. II per
cent, during the war years, but in
creased its profits nearly 500 per cent
and it's profits per ton of output 435
per cent" Mr.. Lauck's: summary Of
the evidence as to profiteering: was as
follows:
"A survey Of the anthracite industry
shows an increase in net profits of
the principal operators for the period
1868 over 1912-14 of nearly 80 per
cent as compared with an increase in
production during. this period of less
than - per cent. For. the year 1919
the available figures show. for two
respective companies an increase. in
net profits over 1913 Of 18 per cent
The figures quoted are. exclusive of
the profits Of the separately incorpor-
ated selling companies through which
certain of the, principal operators
market their product. These compa-
MES, since their organization, have
paid annual dividends ranging from
20 per cent to 80, per cent: -.
In the case of seven representa-
tive mining companies there was an
increase in net profits during the per-
1od 1868 over 1924 of 69.7 Der
cent. Expressed in terms of dollars
the total net income .of these. com
panles advanced FROM an. aggregate
OF $29,S54,9Ss for the" period OF 1912
1914 to $55,52s,S49 for the period
1916-1s1s. an increase of $26,173,Se0
or 1872 per cent. In other words,
their average annual profits during
the war were nearly double their
yearly profits for the pre-war period
though their total production increas-
ed only 11.6 per cent. The net income
earned by these companies on their
capital stock outstanding during the
period 1916-1918 ranged from 20.4
per cent to 36.6 per cent. as compared
with a net income in 1912-1914 rang
ing from 14.2 per cent to 1879 Der
cent. Their combined aggregate out
put during >the seven years ending
Dec. 81, 1918. 1t should be noted, was
approximately 325.000,O00 tons or
about Sc per cent Of all tonnage pro-
duced during that period.
THE immense profits reported by
three of the principal mining COM
panies for 1916-191s are exclusive of
the earnings Of their separately-in
corporated selling departments and
represent only fraction Of their :ac-
tual profits. Since it's organization in
1910 the Lehigh Valley Coal Sale,
company, for example, has paid an
nual dividends at an average rate OF
nearly 20 per cent. The Delaware
Lackawanna and Western Coal com.
pany since it's organization in 1908
has paid 900 per cent in dividends and
has accumulated a+surplus of. $685.
595 or more than 80 rter cent NJ ;ts