Evening star., 1949-09-03
Some Mine Operators
Ba|k al Welfare Pay
Without Contract
By the Associoted Press

John L. Lewis United Mine
Workers used to tell the oper-
ators: mo contract, no work. "
Now some operators are saying:
mo contract. no royalty pay
ments."
The royalty payments-20 cents
on every ton of coal mined-go to
finance welfare benefits and re-
tirement payments for the miners.
About $100.000.000 a year is pass
ing into and out of the fund.
John c. Gall, attorney for the
Southern Coal Producers Asso-
citation, disclosed yesterday that a
substantial number" of coal mine
operators did not make the pay
ments which normally fell due
August 20. Other operators rep
resentatives confirmed that many
companies were withholding the
payments, but they refused to
estimate the extent of the move
ment.
Southern operators say their
contract with the UNIV expired
June 80. Northern and Western
operators figured their contracts
continued until August IA, because
of a Taft-Hartley law requiring
that so days notice be given be-
fore a contract is terminated. Mr..
Lewis had asked for negotiations
with them June IA.
No Contracts Reached.
The Southern operators had
served notice on Mr.. Lewis in April
that the old contract was expiring
June 80 and that they wanted to
talk about a new one.
So far no new contract has been
reached in any area
There appears to have been no
general action by the Southern
Coal Producers Association to
withhold the welfare payments,
but members were reported to
have been advised by their law
yers that they were under no legal
obligation to pay the royalty after
June 30.
On that date Mr.. Lewis aban-
doned the unions traditional mo
contract, no work" policy and set
a three-day workweek for UNIV
members pending negotiation of
a new contract. Talks so far have
been unproductive and inconclu-
sive. They will resume in mid
September. The union is nego-
tiating separately with the South
ern and Northern Western groups
Mr.. Gall said some operators
were finding it impossible to pass
along the 20-cents-a-ton payment
to customers because of a weak
ening demand for coal.
Lewis Is Silent.
Mr.. Lewis had no comment on
the development. Neither did
Miss Josephine Roche, director OF
the miners welfare fund.
Mr. Lewis, however, has called
meeting Of the funds trustees
this week. without announcing the
purpose of the session. The three
trustees are Mr.. Lewis, Senator
Bridges, Republican. of New
Hampshire and Ezra Van Horn,
operators representative.
| Meanwhile. John D. Battle, ex-
ecutive vice president Of the Ma
| tional Coal Association. criticized
Mr.. Lewis order cutting the work
week to two days next week be-
cause of the Labor Day holiday.
This is a further demonstra-
ton of Lewis hold on a group of
men who have no real voice in
conducting their own affairs" Mr..
Battle said in his industry bulle-
tin.
Coal Pile Dwihdles.
In another development, the
Bureau. of Mines disclosed that
the Nations coal pile dwindled
almost 7 per cent during July.
Stocks OF bituminous coal and
Ignite fell from 74,161 900 tons in
June to 69,1l9, 900 tons on July 81.
The bureau said soft coal pro-
duction during the week ending
August ~ was 100000 tons COM
pared with 1928, 900 for the cor
responding week Of 1948.
Production has been running a
little more than half of normal
since the three-day week began.
Cumulative production in l949
/ is 313, los, 900 tons. a decrease of
II ,121 900 tons. or 1875 per cent.
from the corresponding period in
1948.