The Washington times., 1923-08-23
u. S. Coal Commission
Report Shows Cause Of
10 Year Price Increase
BY HARRY WARD,
international News Service.

International News Service.
The United States Coal Commits
sion today made public q 10000.
word report, on the cost Of pro.
duction Of anthracite coal, to-
gether with numerous charts and
tables to show how increasing
labor costs, physical conditions in
the mines and general economic
conditions have combined to more
than double the average price per.
ton during the past ten years.
The report was prepared for the
information and guidance OF both
hard coal, burt no reference was
made to the present strike situa-
ton.
The commission stated that the
cost Of labor In the anthracite
mines had Increased 145 per cent
since 1913, but did not attribute
all OF this increase TO advancing
wage scales.
More Labor Needed.
I'm considering the increase Of
the labor cost, s" the commission
said, two important facts should
always be kept In Inind-Only q
part OF the increase Is due to I'm.
creased wage scales, q part being
attributable to the greater amount
of labor necessary, In the later
years, to produce q ton Of coal, due
to the changes in the physical
conditions in the mines. such as
the mining OF seams which form.
erly were considered too poor to
work. etc. Another consideration
which applies to the labor costs
as to the other costs Is that the
purchasing power OF a dollar was
much greater in 1913 than in 1923.
The labor cost each successive year
has either equaIed or exceeded the
previous year, except that follow
ing the strike year 1922, the labor
lower"
Cost Of Supplies. 81
For the ten-year period, the
cost Of the supplies used by the
anthracite operators increased log
per cent, while general expenses
advanced from 80 cents a ton in
1913 to 90 cents a ton in 1928.
The commission pointed out, how
ever. that these general expenses
figures were not strictly comparable
because Of differences in the meth
DDS used by tho Federal Comrnis-
sion and the Treasury Department
In figuring depletion and deprecia.
ton.
The coal commission based its
findings on reports received from
40 operators. who produced APP
proximately SO per cant Of all the
hard coal mined In the United
States between 1918 and 1923.
Basis Of Facts.
Especial attention was paid to
the reports sent I'm by the ten rail.
road coal companies, which pro-
duced 70 per cent Of the tonnage
in 1921. The other classes were
the larger independents. which
mined 16 per cent Of the total tom
mage: and the smaller independents,
which produced the remaining IL
per cent. The railroad coal COM
panies are the Delaware and Hud
son Company and Hudson Coal
Company, the Pennsylvania Coal
Company. Hillside Coal and Iron
Company, Lehigh Coal and Naviga-
ton Company, Lehigh Valley Coal
Company, Coke Brothers and Com.
pany. Scranton Coal Company,
Philadelphia and Reading CoaH and
Iron Company Lehigh and Wilkes
Barre Coal Company and the Della
WdTcS LdChdWdIid AHu "0StcIH
Railroad with its successor, the
Glen Alden Coal Company.
How Division Is Made.
The commission said that the
division of operators into railroad
coal companies and Independents
was largely result Of historical
development, the anthracite rail-
roads acquiring control or owner
oh lANO a IaA - NJ
the unmined coal in the anthracite
field until they produced 80 per
cent Of the entire output prior to
1917. Various dissolution DEGREES
by the United States Supreme Court.
however. following the cost report
of the Federal Trade Commission
in 1919. has caused some railroads
to diveSt themselves Of interests in
anthracite coal production, but the
coal commission said the methods
Of competition in the anthracite in
dustry remained practically un-
changed.
In figuring the profit of the
operators. the commission divided
the tonnage of coal sold into the
total amount received from it's sale.
less any selling expenses reported
by the OPERATOR. thus revealing the
AVERAGE
sales realization was given as 81. 90
in 1919 s),d $6.67 in 1923, an in
crease OF 154 per cent The mar
gin" OF the operators IL the differ
ence between the sales realization
per ton and the (. o. b. mine cost
per ton. The figures for the margin
are affected, the commission said.
by changes In the method comput.
ing depletion and deprecia ton
| charges. The margin increased 267
per cent, according to the commits.
| sion's figures. from 1913 to 1929,
This increase in margin the
commission explained. must not
be taken as the measure OF similar
Increase in the net profits available
| to the stockholders for dividends or
Tor carrying as undivided surplus.
Out OF the margin must come the
Federal taxes. which were rela.
II HAN~