May 60

July 1

The information shown in graphic form on the opposite side realized by the bituminous coal mining companies for their outpu direct from the producers. They were requested to furnish this infc in tabulated form. The operators began complying with this reque Senate Committee on Reconstruction and Production subpoenaed fect of stopping the forwarding of reports by the remaining oper Committee, they were tabulated, and the attached figures show th The averages shown in the tabulation above were obtained spective groups. It was impossible to obtain the individual sale cludes all companies whose average prices fell within that group exceeds the total number of companies reporting.

These figures show that the 100,000,000 tons produced in the firs an average cost of $2.76, and sold at an average price of $3.47 per profit by any means. It is safe to say that not even half of it and excess profits taxes must be deducted from that margin befc It will be noted that 78,500,000 tons of the 100,000,000 tons average prices between $4.00 and $5.00 per ton, with a general tons were sold at an average price of $6.44. Only 1,335,000 tons noted, therefore, that the prices which may seem excessively higl reports. It will further appear that the cost of production invaria tion to note that most of the companies charging these high pric of very high-grade special-purpose coal, which customarily commar operate at a loss under ordinary market conditions or must shut must obtain relatively high prices when supply and demand con output which comes into the market to increase the supply when c

It is clear, therefore, from the confidential reports of these ] indiscriminate, conscienceless profiteering on the part of the biti

ained for Bituminous Coal, with Costs of Producing It,

of this sheet and shown in detail in the accompanying table with respect to the prices
it from January 1 to October 1, 1920, was obtained by the National Coal Association
›rmation in confidence in order that it might be placed before proper Government officials
st, and by December 18th practically 500 reports had been received. On that date the
all of these reports with attendant newspaper publicity, which had the immediate ef-
ators. However, when these 500 reports had been returned after scrutiny by the Calder
e result.

by combining the monthly totals of all companies whose average prices fell in the re-
s transactions of the several companies. The number of companies in each group in-
in one or several months, consequently the sum of the companies shown in each group
st nine months of the calendar year 1920 by the 494 companies reporting were produced at
ton, f. o. b. mines; this leaves a margin of 71 cents per ton. But that margin is not
will actually be profit, because all interest on bonds and borrowed money and all income
re the producing company has any profit.

were sold at prices averaging less than $4.00 per ton; that 14,000,000 tons were sold at
average price of $4.36; 4,000,000 tons were sold at an average price of $5.41; 2,000,000
or 1.32% of the total production were sold at prices in excess of $7.00. It will be
1 are confined to a small proportion of the bituminous coal production, as shown by these
bly increases as the average price increases. It is also very important in this connec-
es are companies whose costs of production are very high. Some of them are producers
ids a large premium in any coal market. The others produce lower quality coal and must
down entirely. Accordingly, if the latter companies are to make any profit at all they
ditions make for unusually high prices of bituminous coal. They constitute a reserve
lemand for coal is extraordinarily great.

producers to the National Coal Association that loose and wide-spread charges of general,
iminous coal mine operators are absolutely baseless and without justification.