The New York herald., 1922-01-20
Lewis, at Anthracite Con-
ference, Insists Men Have
Made No Plans.
FREIGHT RATES ASSAILED
Spokesman for Producers Ask
Interstate Board for Sweep
ing Reductions.

Special Dispatch to THE New YORK HERALD
New York Herald Bureau.
Washington. ID. c., Jan. 10.
"The stage is all set for strike OF
the bituminous coal miners at the end
of March,
This statement by Secretary of
Commerce Hoover tonight followed
his study of the new program of the
bituminous mine owners in the union
lied fields to cut wages on April 1.
Although Mr.. Hoover declined to
discuss the issues involved. as later
he may participate in peace confer
ences. officials recalled that he has
stood firmly for deflation in wages
upon a reasonable scale to keep pace
with the lowering of production costs
in other fields.
Government authorities generally
are convinced that the wage scales of
the miners contribute largely to the
high costs of coal, and that freight
rates also are an important factor in
that respect. That both must come
down Is the view OF officials.
Announces Wage Decision.
Intention of the bitumincus operators
to cut wages was made known to the
Interstate Commerce Commission to- day
by ]. D. A. Morrow. appearing at the
rate heayfng in behalf of the bituminous
operators. Neither Mr.. Morrow nor
other representatives of the owners
would say whether they expected gen
eral strike.
The operators did not ask the commits
sion directly for a reduction in freight
rates on coal but urged that first con-
s!deration be given to the coal traffic in
the event that general reduction in
freight rates should be decided upon.
The cost Of labor now constitutes SIS
per cent. OF the total production Of COAL
addingg that a cut of not less than 80 per
cent. the increase granted In the settle
ment OF the strike OF the miners two
years ago. must be made IL the union
fields are TO be placed on conpeti-
tive basis with the non-union mines.
The wage contracts between the
miners union and the operators have
prevented reduction this year In wages
In the union fields" he said. The
wages in the non-union fields have been
brought down to the level OF November.
1917, and coal from these non-union
fields is competing with coal from the
union districts all over the eastern part
Of the United States.
Mr. Morrow expressed the belief that
the coal mines should have return Of
at least IL per cent. on their invested
capital. which, he said. was impossible
unless both wages and freight rates were
=. ALA
In many Instances the freight rate on
coal Is from Is to rs per cent higher
than the price at which the coal is sold
at the mines. ne continued.
"The average freight charge on btu
minous coal Is s227 a ton. while the
average at the mines Is s2.13 ton," he
said Lower rail rates on coal. COM
hincd with completion of wage reduc-
tions, will establish lower level Of fuel
costs as a safe basis for industrial en-
terprise."
Calls Treights Far TOO High.
The freight rates Of the country can
be subjected to a shrinhage of 1887 per
cent. and the railroads still pay per
cent. on their actual capital, eaid George
II. Cushing. appearing for the coal
wholesalers. He asserted that the coal
rates are unreasonable 10 tne extent o.
more than so per cent. and asked for
immediate reductions.
THE railroads may on the average
expect a steady increase in their busi-
ness" said Mr.. Cushing. "and when the
rates are so fixed that they will prosper
in average times. proper adjustments
can be made by the ranagements In
abnormal and subnormai times.
ANY specific guaranty Of dividend
rate on capital issues Is an additional
or second guaranty. and adds to the
assurance OF steady revenue from
steadily increasing business another
guaranty to railroad stockholders
against bad management on the part
OF their officials, and to The railroads
as n whole a guaranty against any mis-
take on the part or this commission in
adjusting rates.