The labor world. [volume] (Duluth, Minn.) 1896-current, 1922-11-04

BY International Labor News Service
4 Washington. D. c.. Oct. a.
3-Profiteering by coal compa'
mics during a coal crisis is moi
5confined to small operators and
! wagon Mines" but is practiced
by most of the industry.
Accurate statistics on the profit
eering by coal operator during 1922
may be available some day If the
Federal Trade commission succeeds
lin defeating the injunction proceed
sings brought by coal operators to
Sprevent the commission from gather
ing information as instructed by con-
4gress. The coal commission which
President Harding has been author
lied by congress to appoint for a
similar purpose may also throw some
light on the situation.
4 However, facts about the profit
seering in coal during the 1920 crisis
have been compiled by the commits
4sion and are contained in a report
(which will shortly be printed and
made available to the public.
EsQfits in 1920 Runs to 26S Per Cent
Bonanza;
Analysis of 81 companies, Fl In
SWest Virginia and 80 in Pennsyl-
wanna, shows thta the rate of return
,for individual companies ranged in
1919 from a loss of "a per cent on
the investment fo~ one company to
a profit of As per cent for another
company. Toy the first miro months
Of 1920 the range Of return on in
vestment was from profit Of 5 per
tcent for one company to a profit Of
,26S per cent for another company.
THE company making the profit of
268 per cent was the same company
which in 1919 had a loss Of "a per
cent. It. thus recouped handsomely.
The estimated annual rate for the
whole Of 1920 ranged f-om 4 per
cent to 357 per cent on investment.
The high prices paid by consum-
ers for coal are the result of specu1a-
5tion in the commodity by producers
and middlemen all along the line.
The cost of mining varies very little
for the entire industry, although
there are considerable variations
among different mines. Cost Of min
ing varied from 20 cents ton to
$40 In 1920, while the average
price realized Ter net ton during the
year ranged from Sc cents to $11.87.
In other words, during the crisis the
public was soaked for all the traffic
would bear.
Little information is available on
labor costs. Reports from the GEN.
trail competitive and eastern adjacent
regions, which produce over three
fourths of the total soft coal pro-
duction Of the United States, do not
list labor costs separately. In this
region the investment in 1913 Of 2T5
companies covered stood at, round
y, $2o5, 100000; their average. an
, lual production at 74,300,000' tons;
nd their average unit investment at
;H:76 per ton. The average unit la
o}or cost, total %. b. mine costs, and
let margins of other representative
groups Of companies in this region
n the years 1916 to 1920 are shown
below, together with the approxi-
nate rates of net income based on a
relation Of the representative net
margins to the representative re-
,ional unit investment:
Here Are Costs and Margins of Net
Returns.
1916, for 1877 companies, labor cost
s0.S7; total cost f. o. b. mines, $1.15;
let margin, 5000; rate, per cent.
1917, for same 1877 companies,
abor cost. $1.09; total cost, $1.47;
let margin, $0.79; rate, 20 per cent.
1918. for 765 companies, labor
cost, $3.50; total cost, $3.50; net
margin, $0.51; rate, IS per cent.
1918. for 1872 companies (National
Coal ,association), total cost, $2.15:
let margin, $O.14; rate, per cent.
1920, six months, for 1853 compan-
es, labor cost $1.73; total cost,
s2.21; net margin, $0.43; rate, Is
Yer cent. -
1924. data not available. -
In all these figures inefficient and
efficient mines are grouped together
md averaged. Individual mines make
exorbItant profits all the time and
Ill mines make profits during prof.
eering periods. It is the profiteer-