The Washington herald., 1920-04-04
BOOST IN COAL
PRICE TO COST
BILLION IN US.
Public to Pay Dear for
Peace Between Miners
And Operators.
UNIONS DENY BLAME
Workers Say II Per Cent
Wage Raise Amounts to
$500, 900, 900 Yearly.
UNIONS DENY BLAME

The governments peaceful" set
Element of the bituminous coal con-
troversy stands to cost the Ameri-
can consuming public anywhere
from s5oo.o0O.oOo to $1,000, ,ooo,ooo
annually.
This becomes apparent with the
increases in the prices of soft coal
ranging from s1.25 to 81. per ton
decreed by the coal industry
throughout the United States since
the government price regulations
were removed on April 1.
Coal operators and dealers place
the blame for the situation upon
the 81 per cent increase in miners
wages awarded by President Will
sons coal commission, while the
miners. dissatisfied WITH the award.
claim with the facts and figures un-
doubtedly in their favor, that the
amount of price increase in wholly
, unwarranted by the advance in
mine workers wages.
Estimate Increased Costs.
The careful estimates of the Coal
Commission. based upon the best
figures available. compute the 81
per cent wage advance as additional
production cost to the operators of
100000. 900 annually. But in the
81 per cent is included the IA per
cent increase suggested by DR..
Harry A. Garfield. former Fuel Ad-
rninistrator. and viewed by him upon
the basis OF the exhaustive produce
ton cost records of the admins
tration. as a wage increase which
could be absorbed by the operotors
without an advance in price.
The II per cent advance would
mean an additional annual produc-
tion cost OF S96,o00,oo0. so the op-
orators are entitled on some gov
ernmental theories to advance coal
costs to the public only 100000. 900
annually.
GaraeId Plan Discarded.
But the government did not stand
back of the findings of DR.. Garfield.
Palmer. Attorney General, and JOS
eph P. Tumulty, President Wilson's
secretary, made the now famous
agreement with officials of the
United Mine Workers which resulted
in the appointment of the Coal Com
mission.
But the government did not stand
back of the Coal Commission. While
1t accepted the majority opinion of
the commission as an award upon
which the miners and operators have
made a two-year contract, the Pres;-
dent and his advisers refused the
suggestion of the Coal Commission
ers that government prices be main
tanned until the coal shortage stu
alton cleared.
Government Restrictions.
Government prices were yanked
tions removed excepting those on
export coal. The result has been
the enormous nationwide increases
in the price of coal and no relief
in sight
In their protest Sagainst the
miners original demands for so per
cent increase in wages, a six-hour
day and f1ve-day week the opera
tors estimated the increased cost to
the consumers at S1,O31,9S3,7 ,776.
But the miners will get nothing
like their original demands in the
settlement on the basis of 27 per
cent wage increase and no change
from the present eight-hour day
and six-day week.
- Increase in Washington.
Here is the way the advances in
coal cost, now proposed by the op-
orators and dealers, will work out.
The normal annual consumption
of bituminous coal in the United
States is close to 500, 1000. 900, so an
advance in price Of s1.25 per ton
will amount to s625,000.00o annu-
ally, while the increase in the pro-
duction cost of the coal industry is
only 5000, 100000 for the entire 81
per cent wage increase, or s104, ,000.-
900, IL the Garfield II per cent is
absorbed by the mine interests. In
other words. on the increase of
Sl.25 per ton, the coal industry
proposes to increase its profits from
s4.5. 100000 to s521.ooo.oo annually.
Coal dealers in Washington yes
terday announced price advances of
81 per ton, a basis which would
Increase the gross profits of the
coal industry $1,000. .000, 900 and net
il not less than $500. 100000.