The daily banner. (Cambridge, Md.) 1897-2008, 1920-07-08
SAYS OPERATORS
CONCEAL PROFITS
Workers Expert Declares In
dustry is MOnOpOIized.
PRICE RISE UNNARRAATEO

Declares Real Profits Are Seven
Times Apparent Earninqs-Book
keeping and Legal Devices Conceal
Them.
Scranton, July 9.-A second argu-
ment on behalf of the anthracite min
ers was read by Jett Lauck at the
meeting of the antracite commission
recently appointed by President VIII
son to arbitrate the differences be
tween the operators and their EN-
ployes
A previous statement on ,profitees-
ing and monopoly prepared by Mr.
Lauck was held up because the oper
ators objected in part to statements
made therein. Arguments with re-
gard to its admission were present
ed.
Mr.. Lauck made the charge the
anthracite industry is dominated by
a monopolistic system that presses
up to squeeze the consumer and
down to squeeze tie wage Garner by
diverting profits to points where
neither can see them through the
screen of bookkeeping and Legal
devices"
He spoke in behalf of the United
Mine Workers of America Mr.. Lauck
declared the real profits of the an
thracite industry are at least seven
times the apparent profits.
There is one point" he said,
(which we wish to make so clearly
that there shall be no further doubt
We contend there is no warrant for
the assertion the anthracite industry
cannot pay higher wages without q
further increase in the prices charg
ed to the consumer. Such an asser-
ton Is based upon the meagreness Of
present returns earned by the great
anthracite companies.
Thorough investigation of this
monopoly will reveal funds which do
actually exist, but which are illegiti-
mately withheld from the worker in
wages and taken from the consume
in unwarranted prices.
'The anthracite industry has been
organized into huge combination
a monopoly very similar to the struc-
ture of the octopus. Its head and
body are a very small grouD of bank
Ing interests. It's entwining arms ara
seven railway systems which contro
AT their. extremities the anthracite op
fions Of the country
The books OF the enffre concern
Oh the. industry from mine via rail
road TO final disposal by the sales
corporation, must be examined before
any one can say just what are the
profits derived from anthracite.
"Our contention is that such an
examination of the books of the an
thracfte coal combination is essential
to the settlement of this controversy
on the basis of justice
"The profits of the anthracite in
dustry are to be found in the profits
of the anthracite railroads and in
the profits of the sales companies
controlled by their stockholders. To
these must be added the millions of
dollars which go each year to those
who hold the tens of millions of bond
ed Indebtedness which have resulted
from the financing of the industry.
'The point which we wish to make
is that well-defined process exists
by which the profits of the anthracite
industry are successfully concealed.
the high prices being explained by
apparent high costs. The losses of
the railroad companies are written
into the cost of transportation through
advances without interest and through
the funding operations which impose
large fixed charges upon the rail
roal department
"The high freight rates which such
inflated transportation costs seem to
justify are written into the cost of
anthracite and serve TO bridge the
gap between the mine cost and the
high prices which prevail.