The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-11-19
Miners LABOR
AND CASH PAID
PRICE OF STOCK
Official of Cooperative
Company Explains How
Law Was Overlooked.

Explanation of the organization
procedure of the Sunnyprook and
Center Coal Companies, in Warrick
county, which drew the criticism Of
the state securities commission Mon
day, was made today by Lon T.
Shaw, secretary and treasurer of
the two companies.
Shaw was arrested at Boonville
on a charge of having sold unregiS-
tered stock as an unlicensed dealer.
Afidavits also have been issued for
officers of the Hoosier Coal Mining
Company at Sullivan.
Coble declared "valueless" stock
was sold miners in the cooperative
mining companies and that the pur-
chasers also were required to work
seventeen days as additional pay
ment to $40 cash for each share.
Miners Formed Company
1.-THE Center Coal Company"
Shaw said, was organized in 1925
by a group of miners who had been
out of employment three or four
years because operators were unable
to operate and pay the union scale.
They decided on the cooperative
plan. Upon advice of attcrnyS they
incorporated. Bylaws were drawn
up, placing value of the stock at
$40 a share.
Money from sale Of the stock
went into a special fund, to be
used only in redeeming the stock in
case a man should be discharged or
quit. This procedure was covered
by the bylaws On file with the Sec
rotary of state.
There were fifteen original in
corporators, all miners, including
myself. Directors elected me sec
retary- treasurer. My duties were to
sell the coal, collect the money for
it, keep the records, and divide
profits into fifteen equal shares.
1.-THE mine had not been operated
for two or three years and, lacking
money to employ men to clean it up,
the original fifteen did the work,
knowing they would receive no pay
for it.
Thereafter as new members were
taken in they did so with the dis
tinct understanding they would do
nate ten days work to offset the
part of the work the original in
corporators had donated. They also
were to receive their $40 for one
share of stock if they quit or were
discharged.
Because I was unfamiliar with
the law and was not advised prop
erly. I neglected to procure per-
init from the state securities COM
mission for sale OF the stock to the
miners"
Violence Was Feared
Shaw said one of the signers for
the afidavits was a discharged en-
ploye of the Center Coal Company,
who turned in his stock and received
face value. The other Signer, he
said, was an employee of the Sunny
brook company, who worked there
until the mine closed about Oct. %
because of the miners fearing vio-
lence from union organizers"
The man, Shaw said, was reim-
bursed for his stock. Sunnybrook
miners did not contribute any labor,
as in the case of the other mine, he
said.
Answering statements that the
union was cleared" of aggravating
the situation, Shaw produced a
handbill for the Boonville mass
meeting of Oct. 29, which bore the
words, "Under auspices of the United
Mine Workers of America"
Shaw said he was not a member
of the group which appealed to
Governor Harry G. Leslie for pro-
lection. The delegation, he said, in
Guided a non-union operator of
mine at Chandler, Ind.