Evening star., 1933-09-17
LONGF|GHT MARKS
CODE ON SOFT COAL
Industry Traces Many Ills to
OverdeveIopment Dur
ing War.
By the Associated Press

By the Associated Press
Back of the final delay in completion
of the soft coal industrys code of COM
petition lays the long story of an over
developed industry trying to make ends
meet.
Called upon by the Federal Govern
ment to pay higher wages and prom
ised in return. permission to eliminate
disastrous competition. the operators
professed not to know how to do either
without dire consequences to some OF
their numbers.
During the World War the Nation
called for more and more coal. Mines
not needed under ordinary circum-
stances we're opened. In the coal fields
some farmers made small fortunes from
mines they dug in their pastures.
This tremendous overdevelopment
raised a serious situation among the
operators as soon as the war boom
ended The depression in the coal
made considerably worse in the last few
years by increasing competition from
fuel oil and natural gas.
Attempts to enact Federal regulatory
legislation failed. Competition grew
apace Coal. in some instances. was
sold at less than cost in an attempt
to meet mine overhead. The overhead
continued, whether tho mines were
operated or stood idle. Production
s,umped last year to 00.000.0 900 tons.
During the war period unioniZatlon
of mines went forward rapidly. With
production below demand and prices
high. the producers we're able to pay
comparatively high wages.
When the slump came. most of the
operators demanded a wage cut which
the union refused to accept. Large
groups of producers then endeavored to
drive out the union.
Sought Company Unions.
The unions refusal to make the de-
sired cut has been responsible for much
of the antagonism that has delayed
completion of the code Many of the
operators expressed fear that another
slump might come and the union again
might refuse TO accept wage cuts that
the operators might feel essential to
continuing in business.
With that thought in mind. large
group of operators sought a provision
In the code that would permit them to
foster company unions They claimed
they could deal with their own en-
ployes to better advantages both to
themselves and to miners, than they
could with national union.
TO that end. the Appalachian oper-
ators first inserted III their code an
open-shop clause. President Roosevelt
told them II was ''unthinkable -"
They substituted a clause that would
have permitted them to hire. dis
charge and promote" employees without
regard to membership in any organiza-
ton. Hugh S. Johnson, the recovery
administrator, ordered that removed.
Clarified BY Johnson.
Still insisting it be made clear that
membership in a union was not essen
tlal to the miners to obtain the bene-
mt of the code, and that the possibility
OF company unions be recognized the
Appalachian operators finally agreed
with the administration to append to
the code Johnsons "clarification' of
the recovery acts labor clause.
In part it said:
Th.S can mean only one thing
which is tha. employees can choose any
enc they desire to represent them, or
t3eJ can choose to represent them
Se-V2S. Employers likewise can make
collective bargains with organized en-
ployes ior individual agreements with
thCse who choose to act individuality"
RealZIng, however, that most of their
miners had joined the United Mine
WorkerS Of America in a recent men,
bershlp drive. the Appalachian CONNER
clal operators agreed to negotiate union
LABOR contracts with the understanding
the open shop was to be maintained.
Contract writing is a tedious process
under any circumstances. with many
complicated wage scales to be worked
out. 1t Uas douby so in these negotia-
tions, as many Of the operators never
before had dealt with the union
Quarrel Over Wages.
A long dispute ensued over wages and
wage differentials. The union demand
ed a SIS scale. with a 25-cent differential
for the South Alabama said it could
not pay more than S2.40 and continue
to compete with other fuel Those were
the two extremes.
The Appalachian group. which
claimed to turn out 70 per cent of the
Nations annual tonnage. suggested
384 for the North and S3.44 for the
South The union and the operator
group finally compromised on $3.50 for
the North and s420 for the South.
Dozens of other districts pressing
claims that wages above those they
suggested would put them out Of bust
ness. demanded differentials. Some Of
them. including Alabama, have yet to
settle their scales
Code negotiations started the first
week in June before the recovery act
was passed. when group Of leading
producers drafted a model for an agree
ment Before the public hearing early
in August 29 codes had been submitted.