Evening star., 1923-07-09
FUEL BODY FAV0RS
US. COAL CONTROL
Federal Commission Asks An
thracite Supervision With
Seizure in Case of Strike.

The anthracite mining industry
should continue in operation under
private ownership. but under official
scrutiny and open publicity as to
costs and prices, according to the con-
tention of the Federal Coal Commits
sion in a report made public today.
Wage contracts between operators
and mine workers should be made en-
by penalties against infrac-
tion from either side. and power
should be vested in the federal gov
ernment to take over and operate the
mines in any emergency resulting In
cessation of operations. the report
stated
Concluding an eight month 1nvesti-
CATION of the industry. and summing
up its findings in a 27,O0o-word re-
port, the commission declared anthra-
cite to be a limited natural monopoly,
one third exhausted, and affected by
a public interest which makes it a
subject for especial governmental
treatment.
Cite Profit Split.
without Interpreting the facts de-
veloped by the inquiry. the commits
sion found that of each dollar paid
for anthracite coal by consumers, half
went to cost of coal at the mine, one
fourth for freight, and one-fourth to
the retailer. Operators and retailers.
1t was declared, divide IL or IL cents
out of each dollar in profits, while
labor cost per ton-s1.56 in 1s1S-had
advanced ito SAFE per ton. The aver
age worker gets "as income for a
family OF five," the report said. be-
tween $1,000 and $4,000 a year.
A summary prepared by the COM
mission outlining the principal points
in its report follows:
Anthracite coal Is a limited natural
monopoly, one-third of the deposits
Of which have already been exhaust
ed. AS 1t has long been the fuel of
the northeastern states. it is affected
by public interest. The dissolution
of the railroads and the coal mines
is so recent that it is yet impossible
to say whether the natural monopoly
will be in restraint of trade. The
commission opposes government own
ership, but, for the purpose of de-
termining the effects of this natural
monopoly upon the consumer, recon-
mends publicity through annual re-
ports made to some governmental
TIE increasing cost Of mining and
distributing coal is traced, so that
the consumer may know the facts
upon which wholesale and retail
prices have doubled in ten years. 1t
does not differ from other commodi-
ties save that the soaring price did
not drop in 1920.
The consumers dollar is analysed.
showing that, roughly, half of 1t
pays for the coal at the mine, quar-
ter pays the freight and a quarter
goes to the retail dealer. OF this
same dollar IL or IL cents are divided
as profits between the mine operator
and the retailer, the railroad profit
not being determined. The item of
freight charge is so large that 1t
urges upon the Interstate Commerce
Commission a re-examination Of an
thraclte rates. 1t discloses that near
ly three-quarters of the coal mined
is by mine large companies, which
have circular price ranging from
$S to $685. running through the year,
while the remainder comes from in
dependent companies, varying in nor
NAL times from 50 to $40 a ton, and
in periods of stress obtaining any
thing the market will bear.
1T calls attention to the royalties
paid and the large increase of such
royalties during the last ten years.
When 1T comes to the actual mining
OF the coal 1t shows that labor cost
per ton has advanced since 1918 from
$1.66 to $4.12, retaining practically
the same relation to total cost, while
the cost Of supplies has doubled and
general expenses nearly trebled. The
total cost Of gross ton Of all sizes
was S5.75 for the railroad mines and
$6.32 for certain large independents.
In 1913 the relative cost was $223
and $3.50, respectively.
These averages include steam sizes
that sell below cost, as well as the
household sizes on which the profit
is made. The average cost must be
compared with average sales realiza-
tion on all sizes. not with the mark ct
price of domestic sizes. This average
In 1913 was $2.63. and in 1923, $6.78
The margin between what 1t costs to
mine hte average ton Of coal and
what 1t sold for at the mine Is the
approximate. measure of what the
operator received for his services.
Fixes No Investment Rasis.
1.-The commission fixes no basis for
investment, that being judicial
function, but will later state the fig
ures. with relative theories, as to
De- a