Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-08-23
|C0AL LABOR COST
more THAN DOUBLE
Increased From $1.62 Per
Ton in 1918 to 1897 This
Year-0ther Charges Up;

The cost of labor in production OF
one ton of anthracite increased from
s1.62 in 1913 to $3.97 in the first
quarter Of 1923, the United States
Coal Commission announced today in
report giving the result of it's ex-
haustive study into production costs
in the hard coal industry. The report
called attention, however. that while
labor costs formed Gle per cent OF
the sales realization price in 1913
they had dropped to sos per cent in
1928
BASED upon sworn reports from 14O
producers. representing IS per cent OF
the total output. the commission s
STUDY considered in great detail every
Phase of the financial side Of anthra
cite production. Separate analyses
were made of operators classed as
railroad companies, larger independ-
ents and small independents. a final
comparison being made OF the returns
from thirteen companies who Supplied
comprehensive reports for the Jan
uary- March period of 1928
Cost Up Cents.
In the case of ten railroad com
panies the commission found the
labor expense factor to be $3.50 for
the nrst quarter Of this year. com
pared with $500 in October Decem-
per, isZ2; supplies unchanged at II
cents; general expense, 81 cents, com
pared with 81 cents. and the total
F. o. b. cost" 1854, compared with
$54S- With sales realization of
1908 per ton, this gave the com
panies under study a margin" OF
Sl.o4 ton, as compared with 81 OF
IN the final quarter of last year.
Three representative independents
were shown to have paid $4.44 ton
to labor in 1923, against S4.45 in
acknowledgements, 1929: 80 cents for
supplies, against SIS cents. and s1.0s
FOR general expenses instead of s1.07
the total cost Of production being
S6.32, against $500. With an average
sale price OF 1857 this year, the in
dependents received margin of SIPS
against $l.l6 in the fourth quarter OF
1922.
/ Figures Explained.
This margin cannot be considered
net return to the operator" the re-
port said. 1T is practically equiva-
lent TO net operating income before
payment of interest on tor?) federal
taxes. 1t is not "A good meas
| ure for trying to arrive at relative
| profits OF different operations"
With special regard to indicated in
crease in labor costs. the report said
Two important factors should be
I kept IN NINA oniy part OF the
| increase is due to increased wage
| scales. a part being attributable &c
| the greater amount of labor neces
sary in later years to produce a tor
OF coal. due to physical changes IL
the mines, etc. Another considera
| ton which applies to labor costs as
| well as other costs and to sales reali.
| cation is that the purchasing power
| OF the dollar was much greater ir
| 1913 than in 1923.
General Expenses Up.
! The labor cost each successive year
| has either equaled or exceeded tbs
| previous year except that, following
! the strike year 1922. the labor cos
| for January March. 1929. was lower.
| Average cost of supplies was giver
| as 80 cents per ton in 1913. when j.
was 1873 per cent of the realized
| price. and 70 cents per ton in 1923
| when it formed 10.7 per cent of re.
1 ceipts. Similarly, general expenses
| were shown to have increased from
| 33 to 90 cents per ton in ten years
| but to have decreased from 1875 tc
Ills when figured against sales reali-
! cation.