The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-11-10
]. s. BOARD
ASKS FOR
DRAS TI(
ACTION
Federal Commission Says
Huge Profits viii Be sweIIed
Unless Steps Are Taken.
BY HARRY WARD.
International News Service.

i AnDetn6tAOuaAl news GGfNAOes
Anthracite coal operators will
be compelled to furnish the Gov
eminent with q detailed report
of their operations, in order to
protect the public against unjus-
titled increases in price, If
Recommendation submitted to
President Coolidge today by the
United States Coal Commission
is adopted.
Would Compel Reports.
I'VE recommend complete pub
licity of accounts through Federal
agency with power to compel re-
ports, and to prescribe the form Of
accounts, the report stated.
Because of the large increase IN
the operators margins of profits
per ton since the 1922 strike. and
the possibility Of further increases
in prices as q result Of the recent
settlement" the commission Urged
that such current publicity az TO
costs, margins and profits should
begin at once.
Unless the public Is protected by
publicity of accounts, we are appre-
iensive that the concentrated .on-
troll OF the industry may take in
defensible profits the commission
said. As q measure of protection
against unreasonable profits, the
commission recommended I'll use of
substitute fuels by consumers.
Because of the large increase in
the operators margins Of profits
per ton since the 1922 strike, "and
the possibility of further increases
in prices as result OF the recent
settlement" the commission urged
that such current publicity as to
costs, margins and profits should
begin at once.
Unfair Profits Seem.
''Unless the public is protected by
publicity of accounts, we are ap-
prehensive that the concentrated
control of the industry may take
indefensible profits" the commission
said.
|. AS measure of protection
against unreasonable profits, the
commission recommended the use OF
substitute fuels by consumers.
''In order to permit the public as
a whole to share in the good for
tune of the low cost, high-profit
operator, we recommend that differ
entail taxation shall be applied to
differential advantage" the report
stated. Sweeping ;1crizontaI cuts
cannot be made in present mine
prices and margins without serious
| injury to many high-cost operators,
whose output is needed Taxes
| falling lightly on the low profit op-
orator and more hsevil" on the
| high-profit operator in proportion 20
| his ability to pay will benefit the
consumer indirectly through light
ening the tax burdens elsewhere and
will accomplish this without raising
prices"
Profits Concealed.
The report called attention to the
| fact that the practice Of many coIn-
panies carrying large reserves of
coal lands held for future use, adds
to costs through taxation ana con-
| ceals profits.
ssTbe largest Of the railroad COM
panies, the Philadelphia and Read !
| ing, a high operating cost company
is overburdened with reserves suf-
ficient to last more than 200 years,
the commission said.
.aThe amount Of the increment in
| vaIue of coal lands is a matter de-
serving careful consideration, not
only with respect TO anthracite, but
also with respect to bituminous
coal.
"If this increase in market value
is to continue indefinitely, piling up
carving charges to be added to
current prices, an intolerable bur
den will be laid on the consumer.
Taxes and interest on coal not to
be mined within forty years are
not properly chargeable to present
onerations. Speculation in land
should not be confused with mining
COAL"
The commission reported that be-
cause of great inequalities in cost
and in selling arrangements some
onerators make large profits and
others small profits.
'sThe margins per ton between cost
and sales realization in ordinary
times range from less than nothing
to over SO a ton" the report said.
The per cent return on book value
of Investment in coal ranges all the
yvav from a loss to 1873 per cent.