South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-10-12
STATE COAL
men REFUSE
TO OBEY LAW
P. H. Penna Says Operators
Have No Intention of Fol
lowing New Order.

INDIANAPOLIS. oct. lip. II.
Penna OF Terre Haute. secretary and
treasurer of the Indiana BituminOus
Coal Operators association, IN a
statement issued here Monday night
declared the operators OF the state
had no intention of following the
program Of cost outlined gy the new
state food and fuel commission and
stated the operators would submit
to the new food and fuel law with
out an attempt TO defeat Il.
Characterizing the action Of the
commission as "ruinOus TO the state
and the industry" Mr. Penna warn
ed that mo producer is going 10 op-
crate his property at a loss"
Publicity Campaign.
'In an attempt 20 administer a
bad law In bad way" he said. the
Indiana Food and Fuel commission
has entered upon a publicity cam
paign OF such amazing effrontery
and such palpable insincerity and
faIsehood that the coal producers
OF Indiana feed called upon 10 give
the public some facts upon a mat
ter OF which they have been badly
misinformed, and through which
they are in danger OF being denied
ne thing they most wish-fuel.
First. so far as l know. Indiana
coal producers have no intentions of
falling into the program this COM
mission has outlined and is trying to
carry out, and which they believe
will only aggravate the present con-
dition and create a condition ruinOus
to the state and industry"
Referring TO statements issued BY
the commission TO the effect that
coal operators will not lose any thing
by the commissions new prices, Mr..
Penna said:
1T is not true that no coal pro-
ducer in Indiana need lose a cent
by order of the commission fixing
prices. On the contrary the produc-
ton costs OF twenty nine out of
seventy two mines whose production
costs I have seen are in excess OF
the prices fixed. and the commission
had reports showing this situation
before IT made its prices.
Statements False.
Mr.. Penna said statements attri-
buted TO the commission that indiana
operators have refused 10 supply
coal TO state institutions are false.
The operators had agreed 70 supply
all state institutions with fuel prior
to the new law. at a price fixed by
the state purchasing agent and are
furnishing the institutions with fuel,
he said. -
Statements to the effect that the
names OF small operators furnishing
the commission with coal could not
be made public for fear he would be
frozen out" and that operators and
jobbers had been guilty Of unusual
practices in selling coal TO retailers
through whose hands II will reach
the user. were branded as false by
Mr.. Penna.
1T is not true that production fig
ures Justify the prices named ne
/ said IF the commission had de-
sired 10 give the public true infOrma
/ ton about the cost OF mining coal
IL would have quoted costs for July
and August for all OF the mines and
not the figures for a few OF the low
cost mines and these in most in
/ stances aute-dating increases in the
price Of mine labor.
Price Below Cost.
"The commission has fixed a price
on Indiana coal which is not only
below the cost OF production OF
many mines. but which in all OF
the remainder with only few excep-
tions SO small a margin OF profit that
no responsible business man would
hazard the risk involved.
THE public should thoroughly un-
I derstand that this commission is at
1 tempting 10 produce more coal for
Indiana by the strange process of
closing a very large number Of Ind
lana mines for any business man
will understand that no producer IS
going to operate his property at a
loss. Furthermore violent and un-
Just attacks on n great industry
can hardly be expected 20 improve
! the situation"