The Birmingham age-herald., 1923-07-09
FUEL PROBERS ASK PRIVATE
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Federal Commission, After Eight-Month investigation, Recommends Penalties On Those Breaking Contracts WOULD GIVE PRESIDENT POWER TO SEIZE FIELDS Report Declares Operators Get soc Out Of Each Dollar Paid By Public, Railroads 25C And Retail Men 25C

WASHINGTON, July S.--The feder- al coal commission in report made public today, Contended the anthra- cite mining industry should continue in operation under private owner- ship. but under official scrutiny and open publicity as to costs and prices; wage contracts between operators and mine workers should be made en- forceable by penalties against in- fraction from either side; and pow CT should be vested in the federal government to take over and operate the mines in any emergency result- ing in cessation of operations. Con- cluding an eight-month investiga- tion of the industry, and summing ED it's findingsc in a 27,000-word re- port, the commission declared an- thracite to be a limited natural mono poly, one-third exhausted and af- fected by a public interest which makes it a subject for especial gov ernmental treatment.
 Without interpreting the facts developed by the inquiry, the com- mission found that of each dollar paid for anthracite coal by con sumers, half went to cost of coal at the mine. one-fourth for freight, and quarter to the retailer Op- orators and retailers, it was declared, divide II or F cents out of each dollar in profits while labor cost per ton. $1.56 in 1913. has advanced to $412 per ton. The average worker gets "as income for family of five, the report said, between $500 and S2,000 d year.
 Commissions Report.
 summary prepared by the comS mission outlining the principal points in its report follows;
 Any attempt to analyze the re- port of the United States coal com 5Asie in fG UF imperfect. Some facts of general in- terest for the busy man may be stated.
 Anthracite coal is limited nat ural monopoly one-third of the de- posits of which have already been exhausted As it has long been the fuel of the northeastern states, it is affected by a 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 opp"@ -. government ownership, but for the purpose of determining the effects of this natural monoply upon the con sumer recommends puDHcity through annual reports made to some govern mental agency on forms prescribed thereby. The increasing cost oc mining and distributing coal is traced so that the consumer may know the facts upon which wholesale and retail prices have doubled in 10 years. It does not differ from other commodities save that the soaring price did not drop in 1920 The con sumer's dollar is analysed showing that roughly half of it pays for the coal at the mine, a quarter pays the freight, and a quarter goes to the retail dealer. Of this same dollar II or 12 cents are divided as profits hot n he mi a retailer, the railroad profit not being determined. The item of freight charge is so large that it urges upon the interstate commerce commission a re examination of anthracite rates. It diScloses that nearly three-quar- ters of the coal mined is by nine large companies which have circu- lar pice ranging from sS to sS.35. running through the year, while the remainder comes from independent cOmpanRs varying in normal times from $9fto $10 ton, and in periods of stress obtaining anything the market will bear. It calls attention to the royalties paid and the large in crease of such royalties during the last 10 years. When it comes to the actual mining of the coal it shows that labor cost per ton has advanced since 1913 from Sl56 to S412, re- taiuing practically the same relation to total cost, while the cost of sup plies has doubled and general ex- pcnses nearly trebled. The total cost of a gross ton of all sizes was $5.75 for the railroad mines and $632 for certain large independents. In 1913 the relative cost was $2.23 and s250. rCspectiVely 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 realization on all sizes not with the market price of domestic sizes This average in 1913 was $2.63, and in 1923 $6.7S. The margin between what it costs to mine the average ton of coal and what it sold for at the mine is the approx innate measure Of what the operator received for his services,
 No Basis For Investment.
 The commiss ion fixes no basis for investment. that being a judicial function, but will later state the figures, with relative theories. as to how the investment is to be deter mined Throughout the report it in- sists upon full and continuous pub licity through some governmental 1Continued on Page Two) -S-------------------