The Connecticut labor press. (New Haven, Conn.) 191?-1921, 1920-07-24
HARD FACTS ON
HARD COAL ARE
VERY INTERESTING
Evidence Relating to Secrets of
the Operators Finally Barred
by Commission.
GIVEN TO THE PUBLIC
Miners Expert Issues Summary
Concerning Costs, Wages
and So Forth.

and So Forth.
Scranton, Pa, July 23.-Fo1lowing the
rejection by the Anthracite Coal Com
mission of the documentary evidence
submitted by the Mine Workers to
show the secrets of the industry which
the operators have Fought for two
weeks to suppress, w. Jet Lauck, con-
sulting economist for the United Mine
Workers of America today summarized
the first of these documents for the
public. 1t relates to the costs, prices
and profits of the hard coal business
The Lauck summary prepared as a
statement of facts without deductions
or arguments is as follows:
Il. The production of anthracite
coal is fairly constant from year to
year, the variation from the maximum
to the minimum being in general less
than II per cent. On the other hand,
the number of employees in the industry
fluctuates greatly from year to year,
the pre-war number being close to
10000 while during the war the mum
Der dropped to $4,000 in 1913.
'2. In order to obtain the requisite
production with fiuctuating number
of employees, the mines are obliged to
keep open fuctuating number of days
per year, and SO when the number of
employees dropped during the war, the
mines had to be worked an abnormal
number of days per year.
50. Thus the number of employee
days, that is the number of employees
multiplied by the average number of
DAYS worked, is fairly constant, vary
ing directly with the production, and
in substantially the same degree.
~. The old, pre-war number of en-
ployes is returning to the industry, the
number in 1919 being 5000 greater than
in 1918. 1t is manifest, therefore, that
the days worked to be expected in the
future, with constant production and
a rising number of employees, cannot BE
as great as during the abnormal years
of 1917, 1918, and even 1919.
IS. The earnings, therefore, of the
employees these abnormal years can
form no criteria as to earnings that
may be expected during the future, be-
cause the opportunity afforded for
work will be less than was afforded
during 1917 to 1919 In all probable
ity, the average number of days worked
that may be expected in the future is
around 240 per year, and any adjust
ment that may be made in wage rates
able yearly earnings with this limited
opportunity to work.
70. The value of anthracite coal has
increased much more than have wage
rates. Since 1912 the value of the pro-
duct per ton at the mine mouth has in
creased up to 1919 little over 102 per
cent, while the wage rate to the miner
has increased only 4o8 per cent, so to
raise the wage rate to the same proper
tional relationship to the value of the
product per ton that it possessed in
1912 would necessitate an increase
amounting to "a per cent.
~ In other words, while the miner
produced coal in 1912 worth at the mine
mouth about 5A times his wage, in 1919
it was worth about seven times his
wage.
over total mine costs has risen during
the past several years, showing that the
operator has not suffered any loss HIM
self due to increases given to the EN-
p1oyes. This margin, in spite of the
increase, is still conservative and mod
crate, but by no means represents the
/, total profits derived from the anthra-
cite industry by its owners. Another
source of profit is obtained through the
sales corporations, owned by the same
interests that own the mines, through
which the product is marketed, while a
third profit is obtained through the
freight rates charged by the railroads.
Inasmuch as the railroads carrying the
coal derive a considerable portion of
their receipts through the anthracite
freight rates, it is possible to conduct
the purely mining operations with a
small margin.
"o. The point to bear in mind is that
there is one ownership of the coal
mines, the coal sales companies, and the
railroads, and the total profit to that
common owner resulting from all three
branches of the industry should be con-
sidered as a unit, and not simply the
profit from one branch which admit
teddy is on a conservative basis.
40. The increase in retail prices
has been about three times the increase
in labor costs at the mines. From 1914
to December 1918, the increase in labor
cost at the mines was $1.41 per gross
ton, while the increase in retail prices
at New York and Boston was respec-
lively $4.37 and SAB per gross ton.
Since December 1918 there has been
little or no increase in labor costs at the
mines while the retail prices have
further increased Tin New York and
-Boston) an average of S2.40 per gross
ton.
I'll. A large portion of this recent
increase in retail prices, Of course, has
been made in anticipation of an in
crease in wage rates resultinb from the
award of the United States Anthracite
Coal Commission, which award will be
retroactive to April 1st, and if this
increase in retail prices proves to be
three times the increase in labor costs
at the mines, as was the case above, it
means that the coal trade expects an
award that will increase the labor costs
$3.50 per ton, which is an increase of
~ per cent over the labor cost of De-
cember 1913.
"12 The labor cost at the mines
forms only little less than one-quarter
of the total retail price of domestic coal
in New York city, and less even than
that of the retail price in Boston. An
crease in wage rates resulting from the
that would add so per cent. to the labor
cost of mining coal would increase the
retail price by less than 121z per cent,
if the other costs and the profits were
maintained as before"