The Milwaukee Leader

COAL OPERATORS EXTORT PROFITS IN ALL 4 WAYS

PHILADELPHIA—The governor of Pennsylvania, a spokesman for the anthracite operators, and a leader among the union mine workers, in addresses before the American Academy of Political and Social Science Friday night told what was wrong with the hard coal industry.

Gov. Pinchot said that in his opinion "the whole combination" was a hard boiled monopoly, whose prime interest in the public was that the public shall consume their coal at their prices.

Samuel D. Warriner, president of the Lehigh Coal and Navigation Co. and chief spokesman for the operators, said that the anthracite industry was not a monopoly.

Wage Increase Passed On.

Thomas Kennedy, district president of the United Mine Workers, said the anthracite operators were organized and practically work the same veins at all of the collieries, and there was no reason why uniform wage rates should not exist.

Gov. Pinchot said that the wage increase he suggested, and which was accepted by the miners and operators, was "just and necessary to provide a decent American standard of living."

The governor added that "the operators not only passed the whole increase in cost over to the public, but took advantage of the situation to add to their own profits."

Take Profits Four Ways.

"All the anthracite there is in America," the governor said, "lies in Pennsylvania. In 1921 48 companies produced 93 per cent of all the commercial tonnage, and 74 companies produced 99 per cent.

"It is commonly believed that most of these large companies make exorbitant profits through wholesale companies of their own, and that the wholesale companies affiliated with some of the large operating companies take an extortionate return for their services.

"The whole combination is a hard boiled monopoly. The financial interests help themselves to abundant profits as operators, take more profits as wholesalers, take still more in transportation, and in some cases take all they can get as retailers besides."