Evening star., 1949-09-15
Lewis Disputes Claim
OF Bank L Cannot
Act in Royalty Case
BY the Associated Press


day that the Cleveland Trust Co
can force a big West Virginia coal
firm to keep up royalty payments
to the miners welfare fund.
In a new message to I. F. F'rei-
berger, Cleveland Trust board
chairman, Mr.. Lewis renewed his
contention the bank can control
policies of the Creek Coal Co.
headed by James D. Francis.
Mr.. Lewis, head of the United
Mine Workers, contends that Mr.
Francis has influenced consid-
erable number of Southern coal
producers to withhold the 20
cents-a-ton welfare fund roy
alties.
Obligation Challenged.
The royalties were required by
labor contracts, now expired.
Mr.. Francis argues that he has
no legal obligation to continue the
payments without a contract.
MIR. Frieberger wired Mr.. Lewis
last night that Cleveland Trust
lacks controlling interest in the
Island Creek Coal Co.
Mr.. Lewis message today said
Beyond peradventure the Cleve-
land Trust Co. and you as trustee
of the Holden estate have absolute
control of the policies and the
business affairs of the Island
Creek Coal Co.
Third Interest Charged.
"a one third stock interest in
corporation whose stock is SO
widely scattered constitutes abso-
lutte and unqualified control
which you have personally long
exercise"
The dispute came as the South
ern soft coal industry moved
nearer to a showdown battle over
nonpayment of the royalty.
In yesterdays telegram Mr.
Lewis asked the bank to use its
influence to get Mr.. Francis tc
pay up and avoid a social con-
vulsion" in the coal fields.
But Mr.. Freiberger replied that
Cleveland Trust controls neither
company.
THE Cleveland Trust Co. al
trustee of the Holden Trust holds
substantial, but not a CONTROL
ing stock interest in Island Greek
Coal Co., and only a very NOM
inal stock interest in Pond Greek
Pocahontas Co.," Mr.. Freibergel
said.
Others Withhold Payments.
It was learned also that the
powerful Pocahontas Fuel Co.
headed by o. L. Alexander of New
York. and the Tierney mining in
terests headed by the brothers
Laurence E. Tierney, jr., ano
Lewis c. Tierney, of Bluefield
have held back their July pay
ments.
These and Mr.. Francis firms
together produce nearly 20,000,00C
tons yearly. With other Southern
companies also believed to be
holding out. the miners fund may
be losing $500,000 to 100000 in
July payments alone.
Negotiations between the United
Mine Workers and the Southern
Coal Producers Association, in
which Mr.. Francis is a leader,
were resumed in Bluef1eld, w. Va,
yesterday.
Promptly the welfare payment
issue blew up. The unions top
negotiator here, Secretary Treas
urer John Owens, accused the
Southern Association representa-
tives of backing down on an as
surance that payments would be
continued despite the lack of a
written contract.
Moody Denies Charge.
This was vehemently denied by
Joseph E. Moody, president of the
association. Mr.. Moody said Mr.
Owens must have misunderstood
his statement of August 10 that
the SCPA had no control over
the individual operators welfare
payments.
While Mr.. Owens and Mr.
Moody contended over the well
fare and other contract Issues
each accusing the other of refus-
ing to make a good offer-the
Bluefleld negotiations rocked
along amid rumors that a strike
was imminent.
Mr.. Lewis gave no hint of his
plans. He allowed Mr.. Owens and
Mr.. Moody to engage in their bat
tie Of words here without him.
Mine owners from the North
and West were to resume contract
negotiations with the union at
White Sulphur Springs. w. Va,
today.
Controversy May Flare.
The same controversy over well
fare payments could flare there.
The Northern and Western op-
orators have contended their con-
tract with Mr.. Lewis carried over
until August IA under terms of
the Taft-Hartley Act. They
would not become delinquent in
the August welfare payments be-
fore September 20.
Mr.. Lewis indicated he planned
to return to the White Sulphur
negotiations but his closest asso-
ciates professed not to know for
certain what the mine leader
would do next.
Both Mr.. Moody and Mr.. Owens
repeated that they were serious
in wanting to make a quick con-
tract. Some industry representa-
tives privately said 1T might
mean something this time"
The miners, working a three