Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-30
COAL LAW BOON
SEEN BY GUFfEY
Miners and Operators Near
End of Long Affection,
Radio Forum Told.

An end to 40 years of misery and
. economic uncertainty for 100000 soft
coal miners and their 100000 de-
pendents and of near-bankruptcy for
the operators of the country'S 10000
s. soft coal mines was foreSeen last night
by Senator Joseph Guffey, Democrat.
Of Pennsylvania, as a result OF the
operations of the Guffey- Snyder coal
act, approved by Congress in its last
days.
In an address on the National Radio
Forum, arranged by The Star and
broadcast on q coast-to-coaSt network
by the National Broadcasting Co.,
Senator Guffey, himself born in the
: shadow of a bituminous coal tipple."
promised little If any increase in the
price of bituminous coal to the con-
sumner will result from the operation
Of this act"
Operation Efficiency.
'I believe the increased efficiency
OF operation, which will be brought
about by this plan. will reduce the
cost of production in an amount
greater than the tax imposed" Guffey
said. The legislation puts a Is per
cent tax on all sales of soft coal, but
provides for a drawback to producers
living up to the coal code authorized
In the bill of go per cent of the tax
paid.
Money received from this levy, ex-
pected to amount to $4,000, 900 year.
ly, is to be used in the administration
OF the act and to pay the expenses of
the Coal Commission, provided for in
the legislation, which provides a baby
= N. r. A." for the soft coal industry.
The text Of Senator Guffey's address
follows:
Before proceeding with the subject
matter of my address, desire to ex-
press my thanks to The Washington
Star for its invitation to address this
vast radio audience on the bituminous
coal industry Of this country and the
effect thereon of the bituminous coal
= act which I sponsored and which
passed the Congress.
I was born in the shadow Of a
bituminous coal tipple. I have lived
all my life in the center of the BIZ
luminous coal fields of Pennsylvania
I am not a coal producer, mine oper-
ator or broker. I own no stocks or
bonds Of any coal company. I own
no coal lands or coal royalties. Every
member of my family is in a similar
position. Therefore. I believe am in
a position to approach the problem OF
the coal industry from an entirely
disinterested viewpoint.
am familiar with both the working
and living conditions in bituminous
coal fields. not only of Pennsylvania,
Virginia.
One Of my earliest recollectionS was
seeing the miners evicted from their
homes and compelled to live in tents
on sand bars in the river, and this in
severe Winter weather.
have witnessed all the labor
troubles in the bituminous coal fields
for the past 40 years, and I have also
witnessed all the horrors of the mine
disasters in this territory.
Now, on the other hand, I have seen
all the problems and hardships of the
operators who, in my opinion, have
had almost as hard and difficult a
time as the miners.
Never On Sound Basis.
The bituminous coal industry con-
siStS of between 10 and IL thousand
mines in which approximately 100000
men are employed. These employees
have approximately 100000 relatives
dependent upon them. A majority of
our people depend upon it for heat
and light, and large part of industry
depends upon it for power. 1t is the
principal source of power for railroad
transportation.
Yet in spite of the Importance of
. this industry, upon which so much de-
ponds, it has never been operated on
a sound economic basis. There have
been many reasons for this, the most
important being the failure or ina
bility, for one reason or another, of
: the mine owners and operators to
conduct their business on a profitable
basis.
The owners and operators wilfully
or because of force or fear have en-
gagged in cut-throat competition which
= has resulted in the adoption of the
most waSteful methods of mining,
thereby accelerating the depletion of
rich fields of coal, and leaving in the
ground great quantities of this valu-
able natural resource. This waste was
brought about by their efforts to mine
that coal which could be gotten out
+ in the easiest way and at the lowest
possible cost so that they might try to
keep up with the mad competitive
struggle in which they were engaged.
A large number of these operators
. were forced to do this by large con-
sumers. such as the railroads and pub.
Lie utilities, who, because of their ire
mendous purchases of this product,
imposed their will and demanded and
obtained coal at prices even below the
cost Of production. The railroads were
purchasing and consuming substan-
italy one-third Of our bituminous
outpu and they actually purchased
coal at from minimum of cents to
q maximum of $1.30 a ton below the
actual production cost. These railroads.
systematically and methodically, used
. their vast purchasing power to prey