New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1923-08-23
Flood in Colorado Sweeps
AwayHomes oflOOOP People
Causes 81, 600, 900 Damages
COAL PRODUCTION COST
INCREASES VERY MUCH
Federal Commission Sub
mits Data as to Greater
Mining Difficulties

Washington, Aug. 23.-The cost OF
labor in production of one ton of an
thracite increased from $1.62 in 1916
to $3.97 in the first quarter of 1928
the u. S. Coal Commission announced
today in a report giving the result of
it's exhaustive study into production
costs in the hard coal industry. The
report called attention, however, that
while labor costs formed 61.6 per cent
of the sales realization price in 1918,
they had dropped to sos per cent in
1923.
Based upon sworn reports from 140
producers, representing 9S per cent
of the total output, the commissions
study considered in great detail every
phase of the financial side of anthra-
cite production. Separate analysis
were made of operators classed as
railroad companies larger independ-
ents and small independents, final
comparison being made of the returns
from 13 companies who supplied COM
prehensive reports for the January
March period of 1928.
In the case of ten railroad COM
panies the commission found the la
Dor expense factor to be $3.92 for the
first quarter of this year, compared
with $3.50 in October-December 1922,
supplies unchanged at $0.71, general
expense $0.91 compared with s0.S7,
and the total "F. o. B." cost 1854
compared with s5.4S. With sales
realization of s6.5S per ton this gave
the companies under study mar
gin" of s1.04 a ton as compared with
$1.01 in the final quarter of last year.
Three representative Independents
were shown to have paid $4.44 ton
to labor in 1923 against $4.45 in Oc-
tober- December 1929; $3.50 for sup
plies against sO.6S and s1.0S for gen.
eral expenses instead of $1.O7 the to-
tai cost of production being $3.50
against $500. With an average sales
price of s7.57 this year, the independ-
ents received margin of s1.25
against s1.16 in the fourth quarter
of 1922.
This margin cannot be considered
net return to the operator" the report
said. 1T is practically equivalent to
net operating income before payment
Of interest or federal taxes. 1t is not
a good measure for trying to arrive
1t relative profits of different opera
ions"
With special regard to indicated in
,rease in labor costs, the report said
1.-TWO important facts should be
Kept in mind. Only part of the in
,rease is due to increased wage scales
| part being attributable to the
greater amount of labor necessary in
ater years to produce ton of COAL
lue to physical changes in the mines,
tic. Another consideration which ap-
,lies to labor costs as we'll as other
'osts and to sales realization is that |
he purchasing power of the dollar |
vas much greater in 1913 than in
923.
"The labor cost each successive year
las either equalled or exceeded the
'revious year except that, following
he strike year 1922, the labor cost for
March 1923, was lower"
Average cost of supplies was given
s 35 cents per ton in 1913 when 1t
vas 1873 per cent of the realized price
nd 72 cents per ton in 1928 when it
ormed 10.7 per cent of receipts.
similarly general expenses was
hown to have increased from '33 to
2 cents per ton in 10 years but to
ave decreased from H. to 11.5 when
cured against sales realization.