Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-01-17
SUBMITS DATA
TO SHOW FAIR
MINE PRICES
National Coal Association
Gives Production Figures
Obtained From Reports.
AVERAGE COST S3.47

WASHINGTON, Jan. 17.-Evidence
backing up the assertion of officials of
the National Coal Association that the
bulk Of bituminous coal, during the re
cent coal shortage emergency, was sold
at the mines at reasonable prices. giving
only fair margin OF profit, has been
found in reports sent IN to the assocl-
alton by operators in its membership
covering tonnage produced by them from
Jan. l to Oct /, 1920. These reports
were seized Dec. IS by representatives of
the Calder Committee from the associ-
atoms offices here.
The operators reports, embracing 494
producing companies covered an aggre-
gate tonnage Of 100, 446, 403 from Jan. 1
to Oct 80 out of q total soft coal pro
ductlon for the entire country of ap-
proximately 49,, COO 600 tons during that
period. The reports show the following
as the average OF production cost, sales
price at the mines and margin:
Average sales price per net ton at the
mines, S347.
Average cost per net ton, S2.I6.
Average margin, II cents.
The margin Of Il cents ton, it is
pointed out, is not to be regarded as
profit, for out of it has TO be deducted
all interest on bonds and borrowed
money and all income and excess profits
taxes. The actual average profit. it is
calculated, would be nearer 50 cents
ton.
SENATE COMMITTEE
SEXES REPORTS.
The operators reports were asked for
in Questionnaires sent out by the Ma
tional Coal Association more than six
weeks ago so as to have authentic iufor-
nation to offer the Calder committee or
any other authority that might want
data showing precisely what the soft
coal operators had been getting for their
coal. OF the operators in the assOcia-
tons membership 494 among whom
were most of the largest producers in
the various fields had sent IN replies to
the Questionnaires up to the time that
representatives Of the Senate committee
entered the associations headquarters
with a subpoena issued by the Senate
committee and proceeded TO search the
records OF the association. Among other
things the Senate committees representa-
tives took away with them all the re-
ports that had been received by the assO-
citation in reply to the Questionnaires.
These were later returned to the assocta-
ton. when an opportunity was had to
analyze and tabuIate them.
The action of the Senate Committee
In seizing the reports had the effect Of
stopping the forwarding of reports from
remaining operators in the associations
membership, so that the complete record
OF the tonnage is not available. But con-
sidering the proportion Of tonnage re-
ported upon, the prices reflected are re-
garded as a fair average for the cOun-
try.
ANALYSIS
OF FIGURES.
An analysis OF the operators figures
as disclosed in the QUESTIONABLE reports,
covering 100 ,3O4 tons, showed:
That 3s.704 .997 tons of bituminous coal
or 1888 per cent of the total, sold at an
average price Of S2.62 at the mine; that
the average cost Of production was 1924
per ton, and the average margin IS cents
per ton.
That 80 S29,141 tons, or 1865 per cent
OF the total. sold at an average of S3.46
per ton, with an average cost Of S2.S4
a ton, and an average margin of 90 cents
a ton.
That 14,O67,443 tons, II per cent of
the total, sold at an average price OF
S436 per ton, with an average cost Of
S3.11 and an average margin Of S1.19.
That 100000 tons were sold al the
mine at an average Of SJ.41 ton; 2,O0O,
coo tons at an average of S644 and 1885,
prices in excess Of 81.
1t is pointed out that all prices averag-
ing over S. were confined to little over
per cent Of the entire production re-
ported upon. These prices prevailed at
the smaller mines, which have a high
production cost and many OF which, pro-
ducIng a lower quality OF coal, must
operate at a loss under ordinary market
conditions, or must shut down entirely.
In reality they constitute a reserve out
put which comes into the market only
when the demand is extraordinarily
great, as It was during last years short
age emergency.
In commenting upon the showing made
by these mine reports, J. D. A. Nor
row, vice president of the National Coal
Association, said:
ut is clear, from the confidential re-
ports Of these producers, that loose and
widespread charges of general, indis-
criminate, constituencies profteering on
the part of the bituminous coal mine
operators are absolutely baseIess and