Arizona republican., 1922-04-26
DENIES OVER
PRODUCTION
INFLUENCES
COAL PRICES
Is Safeguard To Consumer
Says Official-Federa
Operation Would Be A
Painful Experiment
[RepublIcan A. p. Leased WireI

/
WASHINGTON, April 25-Testify-
| ing before the house labor committee
today on the Bland bill, which pro-
poses to create federal coal inyesti-
eating agency. J. d. A. Morrow, vice
| president of the National Coal assoc
| citation, declared it was "sheer nom
sense to suppose that consumers pay
more for coal because of over produc-
| ton"
The existence of many mines more
than are needed to supply the country,
Mr.. Morrow said sis the chief safe
guard of the consumer
Mr.. Morrow added that repeated in
vestigation had proven the supply Of
coal in the United States practically
inexhaustible." Wide distribution of
mines and ownership made it possible
for monopoly or price control to exist
in the country, he asserted.
Mr.. Morrow said the industry was
controlled by the "higher competitive
forces under a variety of conditions
OF production and consumption" The
margin received by coal operators in
1921 above their operating cost, he
said, was about 10 cents a ton and
interest and taxes had to be sub
tracteG from this before profits ere
figured. He set the cost of labor at
s7 per cents of mine costs, material
cost at IL per cent and overhead at
about 10 per cent.
Mine Profits SubnormaI
The coal industry was described
by Mr.. Morrow as being NOW in the
process of readjustment from the
conditions brought on by the war;
Profits of operators have long
since come down to subnormal," he
declared, "but the wages of the min
ers in all the union fields have yet to
make the slightest move downward"
Referring again to the Bland hill,
Mr.. Morrow said he did not speak
for the bituminous coal industry, but
personally considered it an unneces-
sary duplication of effort on the part
of the government and creation of an
added burden Of expense" Govern
ment operation of mines, he asserted.
would involve an experiment even
more painful for the nation than
those we have made with railroads
and shipping.
Representative Bland, Republican,
Indiana, took Mr.. Morrow through a.
line of questioning during which both
men agreed that somewhere in the
neighborhood of one-third of all coal
mines" are employed by intermittent
operations in the industry. more than
would be necessary if conditions were
regular
MIR. Bland contended, however, that
this meant the public had to carry
the expense of maintaining the extra
force in the price of coal while Mr..
Morrow insisted the men, when not
employed in mines, could do some-
thing else.
Refuses To FurnisE, Records
Mr.. Bland went into coal cest fig
ures. and finally asked will You un-
dertake to give this committee the
records of costs and profits of the
Westmoreland coal and Coke COM
pary?"
mo, sir, Mr.. Morrow shot back.
'Why not? Mr.. Bland demanded.
81 doubt the policy of furnishing the
financial reports OF individual coal
companies to their competitors Alr
Morrow told him.
rhe company mentioned is one of
the larger Pennsylvania coal pro-
ducers.
Switching to proposals to govern
ment regulation of coal, Mr.. Bland
suggested that it might be necessary
to ascertain coal production costs, Mr.
Morrow observed that while the fed
eral trade commission might have
difficulty in getting such figures. Il
am inclined to think that Secretary
of Commerce Hoover would have lit
tie difficulty in getting them if he
wants them.p
I'm surprised to hear that. Mr..
bland retorted. citing legal proceed
ings which block the trade com
missions efforts. Il haven't noticed
any operators bubbling over with
enthusiasm to furnish information ex-
cept in padded returns.