McGr a w- Hi l l
Pu b l i s h i n g Co m p a n y. In c. J a m e s H . M c G r a w . President
S . J . M e h r e n , Vice-President
Devoted to the Operating, Technical and Business
Problems of the Coal-Mining Industry E n g i n e e r i n g R . Da w s o n HE d i t o ra l i.
V o l u m e 2 9 N E W YO R K , J U N E 17, 1926 N um ber 24
What Can the National Coal Association Do?
M
A N Y W O N D E R w h e th e r a n y th in g is g ain ed by an asso c ia tio n am on g coal m en, y e t m en in n e a rly every in d u s try bind th em selves to g e th e r and find th e p ra c tic e help fu l. Some of o u r fo r e fa th e rs questioned w h e th e r th e y d esire d an y U n ited S ta tes.T hey said let th e v a rio u s com m onw ealths come to g e th e r to m eet an em ergency, j u s t a s th e coal m en m e t in th e w a r w hen d a n g e rs assa iled th e in d u s try . T hey proposed to be s e p a ra te in th e in te rim . T he qu estio n w as se ttle d . T he s ta te s of A m eric a have becom e th e U n ited S ta te s. One c a n n o t conceive co n d itio n s o th e r
wise. S ecession w ould now be re g a rd e d as crim in al and suicid al. Some day coal m en will w o n d er how a n y one could se rio u sly q u estio n th e n ec essity fo r u n ity in th e ir counsels i f no t u n a n im ity in opinion an d unio n in action.
T he s ta tis tic a l w o rk o f th e N a tio n a l Coal A sso cia
tio n if cond u cted in a c a re fu l m a n n e r should do m uch to p re v e n t u n d u e developm ent in th e in d u s try . W hen th e coal m en an d th e public le a rn th e fa c ts re g a rd in g p ro d u c tio n costs and m a rk e t p rice s th e y will be able to see w h a t th e p ro fit in th e in d u s try re ally is, an d we shall n o t find so m an y an x io u s to e n te r th e overcrow ded ra n k s of p ro d u c ers. T he public h a s only a sm all con
ception of th e m an y item s e n te rin g into th e p ro d u ctio n of coal an d believes th a t all th e m en in th e m ines a re
“m in e rs ” an d th a t w h a t is paid th em is an d should be th e w hole co st of p ro d u c in g coal.
* * *
D u rin g th e p a s t w eek th e N a tio n a l Coal A ssociation m et in its n in th an n u a l convention an d th e p re se n t issue is la rg e ly devoted to its proceedings. N ev er h as th e A sso c ia tio n produced m ore s tr ik in g co n trib u tio n s to th e p ro g re s s o f th e in d u s try . E a r ly m eetin g s w ere m ark e d by sev ere re p re ssio n . T he p a p e rs p re sen ted w ere feeb le indeed com pared w ith th o se of th e recen t m eetin g , m an y of w hich a p p e a r alm ost in fu ll in th e pag es t h a t follow. A ny one re a d in g them , even if possessed by a com plex a g a in s t th e in d u s try , will re alize t h a t th e o p e ra to rs m e t w ith th e in te n tio n of solving th e p rob lem s t h a t c o n fro n t th em an d th e n atio n , w ith a c o n s tru c tiv e p ro g ra m , no t p e rh a p s definitely fo rm u la te d b u t in p rocess o f fo rm u la tio n .
F ew o rg a n iz a tio n s h ave a com plete p ro g ra m covering all p h a se s o f developm ent. T h is n a tio n itse lf, as a w hole, h a s no definite plan s. A few g en e ral p rin cip les g o v ern us in th e d ire c tio n of o u r dom estic an d fo re ig n re la tio n s ; b u t ab o u t m an y m a tte rs we a re still g re a tly a t v a ria n c e . Y e t we, as a n atio n , have h ad n o t n in e a n n iv e r s a rie s b u t o v er a h u n d re d . No one h a s up to th e p re s e n t w r itte n in p lain u n m ista k en la n g u a g e a s ta te m e n t of th e p rin c ip le s to w hich n a tio n a lly we
ad h ere, an d if th ey should be w ritte n th ey would lack m uch of m eetin g th e m any com plex s itu a tio n s w hich we as a n a tio n face. As th e A m erican people a re divided and irre so lu te ab o u t c e rta in m a tte rs , so we can no t a n tic ip a te p e rfe c t u n a n im ity am ong coal o p erato rs.
* * *
B u t th e N a tio n a l Coal A sso ciation a p a r t fro m th e fo rm u la tio n o f policies h a s a definite re aso n fo r bein g.
W hen o p e ra to rs le a rn j u s t how m uch coal is going in to a c e rta in m a rk e t an d w h a t th e p rice in t h a t m a rk e t ac tu a lly is, a t an y m om ent, we w ill have fe w e r no-bill c a rs and less d is tre s s coal. W hen m ine w o rk e rs who m alin g er, who will n o t w ork, w ho do no t pay th e ir bills o r who do n o t p ro te c t th e ir lives an d lim bs have th e ir re co rd s w rit p lain we shall soon e ra d ic a te th em fro m in d u s try . A like exodus of w ho lesalers and re ta ile rs w ho will n o t p ay t h e ir bills will occur w hen th e ir re co rd s also a re know n and ta b u la te d .
T ho ug h w h a t follow s m ay n o t re p re s e n t th e p u rp o se of th e A ssociatio n, th e coal o p e ra to rs, w h en th e y m eet to g e th e r, will ab so rb a sense o f m u tu a lity . I t m ay pay b e tte r a t tim e s to produce coal a t a loss r a th e r th a n to leave houses em pty an d m in es d e te rio ra tin g , b u t a sense of so lid a rity w ill induce o p e ra to rs to re g a rd th is p ra c tice as one h a rm fu l to th e coal in d u s try as a w hole an d to them selves also in p a rtic u la r. T h ey will also le a rn t h a t la rg e im m ed iate g ain s b rin g m is fo rtu n e on th e in d u s try , ad v erse c ritic is m and leg islatio n , exces
sive developm ent an d d em o ralizatio n , an d a d isp o sitio n ev en tually will be estab lish ed to c o rre c t th e se evils.
T h is a ttitu d e of m in d w ill n o t estab lish its e lf im m e
d iately n o r u n ifo rm ly , b u t th e sense of s o lid a rity will come in tim e , an d th e m en o f th e in d u s try w ill a t len g th come to h ave c o u rte sy ru le s t h a t condem n alike excessive p ro fit an d u n b rid led co m p etitio n as b ein g e n tire ly c o n tra ry to th e s p ir it of th e tim e s.
* * *
T he N a tio n a l Coal A sso ciatio n is d eterm in e d , w h ile liv in g s tric tly w ith in th e law, to develop, an d w ill ev en tu ally c reate, th e r i g h t s p ir it. All o p e ra to rs who.
w ish fo r th e in d u s try a day w h en it w ill serv e its e lf an d th e n a tio n b e tte r th a n in th e p a s t should be fo u n d in its ra n k s.
T h in k a m in u te . O u r in te r e s t in th e success of th e U n ited S ta te s exceeds o u r p erso n al in te r e s ts in o u r own in d u s try . I f w e d id n o t h av e good g o v e rn m e n t, o rd e r an d a p ro p e r public s e n tim e n t in th is c o u n try w e w ould n o t h av e th e b a sis fo r even en d u ra b le ex isten ce.
So w ith th e coal b u sin e ss it is p rofitab le, p ro g re s s iv e , h e a lth fu l only i f w e h ave ta k e n tim e, n o t only f o r th e pi opei h a n d lin g of o u r a ffa irs , b u t th e p ro p e r d ire c tio n of th e c o rp o ra te b u sin e ss o f th e whole in d u s try .
8 5 7
85 8 C O A L A G E Vol. 2 9 , N o . 24
National Coal Association Spends Three Days Formulating Plans for Coming Year
S ta ff C o r r e s p o n d e n c e
E
X P A N D IN G S E R V IC E to m eet th e g ro w in g needs of th e b itu m in o u s in d u s try w as dem anded by th e o p e ra to rs a t th e n in th an n u al convention of th e N a tio n a l Coal A ssociation, held a t th e D rak e H otel, C hicago, J u n e 9-11. M ore s ta tis tic a l in fo rm atio n , m o ie m a rk e tin g d a ta , m ore scientific research , g re a te r co-operation w ith in th e in d u stry , in ten siv e stu d y of accid en t p re v en tio n w ork w ere s e t fo r th as services in w hich th e o rganized b itu m in o u s tra d e should ta k e th e lead in fu r n is h in g its m em bers.
W hile a tte n d a n c e w as exceeded by th a t a t som e of th e e a rlie r m eetin g s w hen w a r-tim e control m ade m em b e rsh ip alm ost obligatory, th e convention la st week set a new record in g enuine in te re s t an d en th u siasm an d in th e b ro a d sweep of th e p ro g ram p re sen ted .for th e con
sid e ra tio n of th e delegates p re sen t. T he inno v atio n of g ro u p m eetin g s to discuss pooled p u rc h ases an d sales m ethods proved specially successful,
an d th e a tte n tio n given to th e s a fe ty m ovem ent m ade it c e rta in t h a t th e N a tio n a l Coal A ssociation as an o rg a n iz a tio n w ill play a la rg e r p a r t in accident p re v en tio n w ork in th e fu tu re .
T he convention, in a reso lu tio n adopted on th e closing day, a g a in w e n t on reco rd as u n a lte ra b ly opposed “to an y fe d e ra l leg islatio n w hich singles ou t th e coal in d u s try fo r re g u la tio n .” A t th e sam e tim e, it w as m ade clea r in co m m ittee r e p o rts an d floor discussion t h a t th e in d u s try proposed to so en larg e its s ta tis tic a l a c tiv itie s t h a t th e re would be no excuse fo r com pulsory fact-finding. C o n tin u a tio n of th e sta tis tic a l p ro g ra m u n d e rta k e n by th e asso c ia tio n w as specifically au th o riz ed in a n o th e r resolu tion.
W a lte r B arn u m , p re s id e n t of th e P acific C oast Co., w ith h ead
q u a rte rs in N ew Y ork C ity, w as elected p re sid e n t of th e asso ciatio n f o r th e en su in g y e a r. I r a Clem ens, p re sid e n t, Clem ens Coal Co., P itts b u rg , K a n .; M ichael G allagher, g en eral m an ag e r, M. A. H a n n a Co., Cleve
land, Ohio, an d G eorge B. H a rrin g to n , p re sid e n t, C hicago, W ilm in g to n & F ra n k lin Coal Co., w e re re-elected v ice-p resid en ts. E. C. M ahan, p re sid e n t, S o u th e rn Coal & Coke Co., Knoxville, T enn., w as elected v ice-p resid en t to succeed M r. B arn u m . C. E.
B ockus, p re s id e n t, Clinchfield Coal C o rp o ratio n , N ew Y ork, w as a g a in th e choice fo r tr e a s u r e r . H a r r y L.
G andy a g a in w as nam ed as executive s e c re ta ry .
A t th e op enin g of th e convention on J u n e 9, th e fo l
lo w ing co m m ittees w ere ap p o in ted :
N o m in atio n s an d E le c tio n s: O tis M ouser, V irg in ia , c h a ir m a n ; R. N. Sherw ood, I n d ia n a ; G eorge B ausew ine, J r ., W est V irg in ia ; G eorge J. L. W ulff, M isso uri, and T.
W . G u th rie , P en n sy lv an ia.
C re d e n tia ls : D. H . M orton, W est V irg in ia , c h a ir
m an ; J. C. N elm s, O h io; I r v in Jo h n so n , K entu ck y , an d W. L. A. Joh nso n, M isso u ri.
R eso lu tio n s: L ouis C. M ad e ira, I I I , P e n n sy lv a n ia , c h a irm a n ; Jo h n J . L incoln, W e st V ir g in ia ; W a rre n B lauvelt, In d ia n a ; C. F . R ic h a rd so n , K e n tu c k y ; P . J.
Quealy, W yom ing ; G eorge C. E astw o o d , M ic h ig a n ; E.
C. M ahan, T en n e ssee; Lee Long, V irg in ia , an d D. F . H urd, Ohio.
P re s id e n t M. L. Gould, w ho h a d yielded th e c h a ir to M r. M ad eira, m ad e h is a d d re ss to th e co nv en tio n a s tro n g plea fo r in cre ased m em b ersh ip . T ho se now in th e association , h e said , c o n s titu te “a sp len did , loyal nucleus of fo rw ard -lo o k in g o p e ra to rs, w ho a r e c o n trib u tin g th e ir su p p o rt u n g ru d g in g ly to hold th e lin es firm a g a in s t th e know evils of d is in te g ra tio n a n d to m ake stead y advances of p ra c tic a l value.
“ In o u r W a sh in g to n offices w e h av e a m o st com p e te n t staff. I t is need less f o r m e to d eliv er a n y eulogy o f M r. G andy.
Y ou know h im , a s I know h im , f o r a m o st efficient execu tive, who, in th e fa c e o f o bstacles w ith w h ich we a r e all too fa m ilia r, h a s n o t only held t h is o rg a n iz a tio n to g e th e r d u r- th e p a s t th r e e y e a rs , b u t h a s con
s id e ra b ly s tre n g th e n e d i t .”
T h e a sso c ia tio n , a s s e rte d M r.
Gould, h ad a c o n s tru c tio n p ro g ra m w hich w as bo und to f u r t h e r th e in te r e s ts o f th e in d u s try . B u t m ore o p e ra to rs m u s t s h a r e th e financial b u rd e n s o f c a r r y in g o u t t h a t p ro g ra m . A s a p r iv a te in th e ra n k s, M r. Gould p ledg ed h is s u p p o rt in a m e m b e rsh ip ca m p a ig n . “ W hen co m p e tito rs in th is b u s in e s s decide to g e t to g e th e r a n d to d ire c t t h e ir effo rts to w a rd in c re a s e d efficiency, such a s w ill com e th r o u g h le a rn in g fro m each o th e r an d th ro u g h w id e
s p re a d co -o p erativ e effo rt, th is in d u s try will b egin to re a liz e its v a s t p o s s ib ilitie s .”
A t th e conclusion o f h is a d d re ss, M r. Gould w a s given a un an im o u s vo te of th a n k s by th e d eleg a tes f o r h is lab o rs in t h e ir b e h a lf d u rin g h is te r m of office.
T he re p o rt o f H a r r y L. G andy, ex e cu tiv e s e c re ta ry , w as a brie.f re v ie w of som e of th e m a jo r a c tiv itie s of th e p a s t y ear. D isc u ssin g th e t h r e a t s o f re g u la tio n , he ex p ressed th e b elief t h a t tim e w ould m ak e it c le a r t h a t th e econom ic pro blem s o f th e in d u s try could n o t be solved by leg islatio n such as now p ro p o sed a t W a s h in g to n . F act-fin d in g , he p o in ted o ut, h a d n o t a v e rte d coal c rise s in G re a t B rita in . G o v e rn m en t in te rv e n tio n in w age d isp u te s h a d n o t b ro u g h t in d u s tr ia l peace. “ T he reco rd h e re an d in E n g la n d ju s tifie s th e s ta te m e n t t h a t th e ad vance re c o g n itio n o f an in d u s tr ia l em erg en cy w ill b rin g th e em ergency. T h e s e ttin g u p of a body p o litica l to w hich e ith e r sid e m ay ap p eal w ill m a k e p ra c tic a lly c e rta in th a t em ployers an d em ployees c a n n o t a g re e .”
M r. G andy a c q u itte d th e n a tio n a l a d m in is tr a tio n o f
Ju n e 1 7 , 1 9 2 6 C O A L A G E S 5 9
M. A . G a lla g h e r G. B. H a r r in g t o n E. C. M ahan
an y d esire to in ju r e th e in d u s try . “ T he s ta te m e n t of th e S e c re ta ry o f C om m erce b efo re th e H ouse com m ittee an d h is re p ly to q u estio n s in d icated a frie n d ly a ttitu d e . W e m a y d isa g re e on j u s t w h a t should o r should n o t be done, b u t a t th e sam e tim e I g r a n t a s in c e rity of purpo se to th o se w ith w hom w e d is a g re e .”
T h e coal tr a d e is m a k in g slow, b u t c e rta in , p ro g ress to w a rd b e tte r m erc h a n d isin g , re p o rte d M r. G andy.
S ta tis tic a l a c tiv itie s of local asso c ia tio n s a r e ex p an d ing. “ T h a t v o lu n ta ry effo rt on th e p a r t o.f th e in d u s try , an d th e p ro g re s s th u s f a r gives p ro m ise t h a t it will be successful, w ill elim in a te th e re aso n g iven by th o se who ad v o c ate s ta tis tic a l a c tiv ity on a com pulsory b asis by th e fe d e ra l g o v e rn m e n t.”
C. E . Bockus, tr e a s u r e r , re p o rte d t h a t re ceip ts fo r th e y e a r ended M arch 31, 1926, h ad to ta le d $158,516 an d expenses, $160,309, leav in g a deficit of $1,793, as com pared w ith a deficit exceeding $23,000 a y e a r ago.
O u ts ta n d in g acco u n ts receivable f a r exceeded th e lia b il
itie s. “ I f w e can re alize 10c. on th e dollar, o u r asso
c ia tio n is solvent. I th in k we can realize a t le a st 50c.”
A lth o u g h 138 a sso c ia tio n an d in dividual m em bers h ad been ad ded to th e rolls th e p a s t y ear, th e losses n u m e r
ically h a d o u tru n th e s e g a in s, acco rd in g to th e re p o rt of S. P e m b e rto n H u tc h in so n , c h a irm a n of th e m em b e rs h ip com m ittee. T h e in c re a se in to n n a g e re p re sen ted , how ever, w as over 16,000,000 tons.
Local a n d Gr o u p Ad v e r t is in g
Local an d g ro u p a d v e rtis in g w as u rg e d by G eorge B.
H a rrin g to n , c h a irm a n of th e co m m ittee on pub licity, w ho also re p o rte d a m o re fa v o ra b le a ttitu d e to w a rd th e in d u s tr y on th e p a r t of th e d aily p re ss. T h e re h a s been little g a in in o v erseas b u sin ess, sa id th e re p o rt of H.
N. T a y lo r, c h a irm a n of th e co m m itte e on fo re ig n tra d e . A m e ric a n s h ip p in g is h a n d ica p p ed by a r b it r a r y law s w h ich in flate co sts a n d w o rk a g a in s t th e ex p o rt tra d e . I r a C lem ens, c h a irm a n of th e tr a n s p o r ta tio n co m m it
tee, s ta te d t h a t no m a jo r problem s h ad come b e fo re his g ro u p th e p a s t y e a r.
“ T h e p ric e o f p ro g re s s is re s e a rc h ,” declared W a lte r B a rn u m , c h a irm a n of th e re s e a rc h co m m ittee. Those w ho w ill n o t p ay th e p ric e w ill fa ll by th e w aysid e.
U n til m e m b e rsh ip in th e N a tio n a l Coal A sso cia tio n h as b een in c re a se d , how ever, th e re s e a rc h a c tiv itie s of th a t
o rg a n iz a tio n m u s t be lim ited larg e ly to m issio n a ry w ork an d co-operation w ith e n g in e e rin g societies an d o th ers engaged in re se a rc h in v e stig a tio n s.
T he com m ittee is co -o p eratin g w ith th e A m erican I n s titu te of M ining and M etallu rg ica l E n g in e e rs an d th e A m erican Society of M echanical E n g in e e rs in a consolidation of re se a rc h a c tiv itie s in th e m ech an iza
tio n o f m ines. C ontact h as been estab lish ed w ith th e M assac h u setts In s titu te of Technology th ro u g h m em b e rsh ip of th e com m ittee of th e I n s titu te w hich gives counsel re g a rd in g th e g ra d u a te course in fuel a n d g as en g in ee rin g . T he asso c ia tio n also is financing a g ra d u a te re se a rc h fellow ship in th e C arn e g ie I n s titu te of Technology.
“We a re proceeding in a p u rp o se fu l w ay as f a r as o u r fu n d s will p e rm it. T he old say in g , ‘know ledge is po w er,’ is tru e . We m u st equip th e ra n k an d file o f p ro du cing and selling o rg a n iz a tio n s so t h a t th e y w o n’t be hopelessly han dicap p ed by a lack of know ledge of th e ir own goods and service. H ow can w e m eet oil com p e titio n , fo r exam ple, w ith o u t th e ra n k an d file of o u r in d u s try , n o t j u s t th e occasional ex p e rt, b ein g th o r-
L ouis C. M a d e ir a I I I a n d H a r r y L. G a n d y
86 0 C O A L A G E Vol. 29, N o . 24
S . P. H u tchin son M . L. Gould E z r a V a n H o r n
oughly a t hom e an d fa m ilia r w ith com bustion d iffe r
ences an d steam c o sts? ”
T he oil in d u stry considers a $500,000 fu n d fo r re searc h only a drop in th e bucket. “To an in d u s try in g re a te r need of researc h th a n is th e oil in d u s try ,” con
cluded M r. B arnum , “ even h a lf such a drop would be extrem ely helpful. I t would be a hum ble, b u t a real, b eg in n in g .”
Se e k for Motor Fuel
Coal as th e fu tu re source of m otor fuel w as th e pic
tu re held up in a p ap e r on “H u n tin g fo r th e E lem en ts P roduced by L o w -T em p era tu re D istilla tio n .” T h is paper, th e w ork of R. L. B row n and R. B. Cooper, w as p re sen ted by M r. Cooper, who is th e N a tio n al Coal A ssociation g ra d u a te re se a rc h fellow a t C arnegie. T he b asis of all m oto r fuels, said th e au th o rs, is carbon.
W ith petroleum re serv es dim in ish in g , th e com m ercial conversion of coal into m o tor fuel can n o t be long delayed.
T he first gen eral session ended w ith a review of m ine w a te r pollution of stre a m s by R ich ard D. L eitch, asso c iate chem ical engineer, U. S. B u reau of M ines, P i t t s b u rg h , an d th e re p o rt of th e cred en tials com m ittee.
The g re a te r p a r t of th e T h u rsd a y m o rn in g session, p resid ed over by E z ra V an H orn, gen eral m an ag e r, C larkson Coal M ining Co., w as given over to a d iscu s
sion of acciden t-prevention w ork. T his new d e p a rtu re in th e a c tiv itie s of th e convention, covered in detail elsew here in th is issue of Coal A g e, aro u sed such i n te r e st t h a t p rosecution of f u r th e r w ork along th e sam e lin es w as a u th o riz ed in a resolu tion adopted th e n ex t day.
The re p o rt of th e com mittee- on n o m in a tio rr and elec
tio n s, approv ed by th e convention, nam ed th e follow ing d is tr ic t d ire c to rs : W a lte r B arnum , Pacific C oast Co., W a sh in g to n ; C. E. Bockus, Clinchfield Coal C orpo ration , V ir g i n i a ; I r a Clemens, Clem ens Coal Co., K a n s a s ; T. F . F a rre ll, P o cah o n tas F uel Co., W est V irg in ia ; D avid Ingle, A y rs h ire Coal Co., In d ia n a ; T. W. G u th rie, H ill
m an C o a lp 'C o k e Co., an d L. C. M adeira, I I I, M adeira, H ill & Co., P e n n s y lv a n ia ; G eorge B. H a rrin g to n , C hi
cago, W ilm in g to n & F ra n k lin Coal Co., Illin o is; H.
D enm an, P a r is P u r ity Coal Co., Oklahom a, A rk a n sas an d T e x a s; C. W. T aylo r, W. G. D uncan Coal Co., K en
tu c k y ; S. L. Y erkes, G rid e r Coal Sales Agency; A la
b a m a ; H. N. T aylor, U. S. D is tr ib u tin g C o rp o ra tio n , W yom ing and M o n tan a; G eorge C. E astw o o d , Consol
id ated Coal Co., M ichigan . W ith th e ex cep tion of M essrs. Ingle, D enm an, C. W. T a y lo r an d E astw o o d , th e d ire c to rs nam ed h ad been chosen to succeed th e m selves.
F o r d ire c to rs a t la rg e , th e fo llow in g w e re elected : P . H. P en n a, In d ia n a B itu m in o u s Coal O p e ra to rs ’ A sso ciation, In d ia n a ; W. H. C u n n in g h am , B u rg e s s B ran c h Coal Co., W est V irg in ia ; P . J . Q uealy, G unn-Q uealy Coal Co., W y om ing ; T ho m as D eV enny, W illiam so n Coal O p e ra to rs’ A sso ciation , K en tu ck y . M essrs. P e n n a , C un
n in g h am an d Q uealy w e re elected to succeed th em selves.
V o lu n ta ry s ta tis tic a l a c tiv itie s upon th e p a r t o f th e in d u s try received th e un qualified in d o rs e m e n t o f th e com m ittee on tr a d e in fo rm a tio n . C om pulsory re p o rtin g w as as unqualifiedly condem ned. “ A s an in d u s tr y ,”
said C. E. B ockus, c h a irm a n , “we a r e opposed to any sy stem of com pulsory re p o rtin g to a fe d e ra l agency, n o t because we d esire to h av e th e fa c ts concealed, b u t because we believe t h a t such a m ove m a y w ell prove th e firs t ste p in th e d ire c tio n o f fe d e ra l re g u la tio n of th e in d u s try .”
In th e opinion o f th e co m m itte e th e r e w e re m an y lines o f d esira b le s ta tis tic a l a c tiv ity w h ich th e in d u s try should u n d e rta k e . T h e asso c ia tio n , h ow ever, h a s been c o n c e n tra tin g on th e p ro m o tio n of p a s t sales re p o rts , w ith th e id ea th a t, as soon a s th o se re p o r ts become g en eral, th e o rg a n iz a tio n w ill th e n seek to f o s te r o th e r f a c t co m pilations.
Ta x a n d Co st Ac c o u n t in g
T he m a jo r pro blem s to w h ich th e ta x an d co st- ac co u n tin g co m m ittee h ad devoted its e lf d u rin g th e p a s t y ear, said R. C. T w ay, c h a irm a n , in a d d re s s in g th e convention a t th e closing sessio n on F r id a y m o rn in g , J u n e 11, w ere th e in te r p r e ta tio n of A rtic le 224 of th e incom e-tax re g u la tio n s an d ch a n g e s in th e in com e-tax law of 1926. In th is th e co m m itte e h a d receiv ed th e a ssista n c e of W. B. R eed, fo rm e r s e c re ta r y of th e N a tio n al Coal A sso ciatio n , an d now its ta x ad v iser.
R o u tin e w o rk included th e h a n d lin g of ta x a tio n qu es
tio n s re fe rr e d to th e co m m itte e by in d iv id u a l m em b ers an d th e p re p a ra tio n , by M r. R eed, o f s h o rt d ig e sts of decisions an d ru lin g s affec tin g fe d e ra l ta x a tio n .
A rtic le 224 is th e re g u la tio n î il w h ich d is trib u tio n
Ju n e 17, 19 2 6 C O A L A G E 861
is m ad e betw een c a p ita l ch a rg e s and expense item s.
T he asso c ia tio n h a s ta k e n th e p o sitio n t h a t ex pen di
tu re s to m a in ta in p ro d u c tio n should be tre a te d as expense item s an d ex p e n d itu re s to in crease p ro du ctio n should be capitalized . E ffo rts to m a in ta in t h a t po si
tio n , how ever, have n o t been v ery successful. E ach ru lin g p ro m u lg a te d h a s a p p e are d m ore d ra stic th a n its predecessor. T he m ost re c e n t decisions, fo r exam ple, have ta k e n ra ils an d lesser item s ou t of th e expense accoun t an d p u t th em in th e c a p ita l account.
T he asso c ia tio n still is fig h tin g to secure acceptance of its positio n . T he questio n of in te rp re ta tio n is now b efo re th e fe d e ra l c o u rts in Beech C reek Coal Co. vs.
C ollector o f In te r n a l R evenue. T he asso c ia tio n also is la b o rin g to h ave th e a rtic le lib eralized in th e r e d ra ftin g o f th e re g u la tio n s m ade n ec essary by th e new income- ta x law “to elim in a te all re fe re n c e to m a jo r an d m in o r item s of expense or to th e p robable d u ra tio n of th e life o f th e a rtic le fo r w hich th e expense w as in cu rred . I t w ould base th e d istin c tio n absolutely an d solely upon th e q u estio n of th e effect of th e ex p e n d itu re upon o u t
p u t or upon co st o f p ro d u c tio n .”
Ca p it a l- Stock Ta x Is Pr o perty Levy
D u rin g th e c o n sid e ra tio n of th e new ta x law by Con
g re ss th e asso c ia tio n filed a b rie f opposing th e cap ital- stock ta x , th e sta m p ta x on o rig in a l issues of stock an d th e re tro a c tiv e fe a tu r e s of section 204 of th e act of 1924. T he c a p ita l-sto c k ta x , th e com m ittee em p ha
sized, h ad to be p a id re g a rd le ss of e a rn in g s an d w as v irtu a lly a p ro p e rty ta x . “ T ho u g h definite figures a re no t av a ila b le as to ca p ita l in v e stm e n t in th e b itu m in o u s in d u s try on w hich th e ta x w as based, y et a co nserv ativ e e stim a te w ould be t h a t th e rep eal of th e capital-sto ck ta x law saved th e b itu m in o u s o p e ra to rs so m eth in g betw een $2,000,000 an d $3,000,000 an n u a lly .”
T ra d e in fo rm a tio n , s tre a m pollution, a th re a te n e d tr a n s f e r o f s a f e ty w o rk to th e B u re a u of L ab o r S ta tis tics, proposed m odifications of th e S h erm an a n ti- tr u s t law an d th e ca m p a ig n fo r re g u la tio n of th e coal in d u s try w ere th e su b je c ts d iscussed in th e re p o rt of th e g o v e rn m e n t-re la tio n s com m ittee p re se n te d by W. H.
C u n n in g h am , c h a irm a n . T he com m ittee com m ended th e rev iv al o f s ta tis tic a l a c tiv ity an d in d o rsed th e recom
m en d atio n s o f th e tra d e in fo rm a tio n com m ittee fo r an expansion of th a t w ork. W hile stre a m pollution w as a local, no t a fed eral, m a tte r, so m any m ines a re affected th a t th e o rg a n iz atio n should keep in touch w ith develop
m en ts to p re v e n t in ju s tic e b ein g done.
T he com m ittee rep o rted success in its re p re s e n ta tio n s to C ongress th a t th e proposal to estab lish a division of labo r s a fe ty in th e D e p a rtm e n t of L ab o r should exem pt th e m in in g in d u s try an d leave th e sa fe ty w ork u n d er th e co ntrol of th e B u rea u o f M ines.
Fa c in g All Is s u e s Sq u a r el y
R eview ing th e d rive fo r fe d era l leg islatio n on coal, M r. C u n n in g h am declared t h a t “th e association con
ducted no lobby, it m ade no p u ssy fo o tin g efforts. I t lace d th e issu e sq uarely . I t believed th e in d u s try h ad n o th in g to hide. T he effo rt a g a in s t leg islatio n w as m ade w ith o u t apology; th e reco rd of th e in d u s try w as cited w ith p rid e.
“ T he p re s e n t C ongressional session is n e a rin g its end, and it is th e b elief of m an y who a r e in touch w ith th e situ a tio n th a t th e re will be no f u r th e r a c tiv ity fo r coal leg islatio n befo re a d jo u rn m e n t. T he bills m en tio ned (th e C opeland an d P a r k e r m e a su re s) w ill go over to th e D ecem ber session, w h ere efforts m ay a g a in have to be m ade on b eh alf of th e in d u stry .
“ In fa c t, gentlem en, th is is a c o n tin u in g effo rt fo r th e p ro tec tio n of th e in d u stry . T h ere is a p a r t of o u r c itiz e n ry co n stan tly s triv in g fo r in creased g o v ern m en tal ac tiv itie s. B itu m in o u s o p e ra to rs m u st alw ays be on th e alert. T hey should s tre n g th e n th e ir p o sitio n by s tre n g th e n in g th e ir local asso c ia tio n s an d in t u r n s tre n g th e n in g th e ir n a tio n a l associatio n. F u r th e r , th e y should m ake it th e ir b u sin ess a t all tim e s to fu lly a c q u a in t th e ir fellow citizen s— an d t h a t includes m em b e rs of C ongress— w ith th e fa c t t h a t th e b itu m in o u s in d u s try is fu e lin g th is g re a t n a tio n a t a low er cost th a n t h a t enjoyed by an y o th e r coal-consum ing public in th e w orld .”
In th e discussion w hich followed th e re a d in g o f th e re p o rt, C. F . R ich ard so n , W est K en tu ck y Coal Co., u rg e d m em bers to keep in touch w ith th e n a tio n a l law m ak ers. J . G. B radley, E lk R iv er Coal & L u m b er Co., declared t h a t th e coal in d u s try did n o t w a n t th e
M e lv i n T r a y l o r H . B. L i n d s a y
86 2 C O A L A G E Vol. 29, No. 24
% g o v ern m e n t to deprive it of its in itia tiv e and to ta e
aw ay th e re sp o n sib ility th e o p erato rs h ad to w ard s th e ir stock holders and th e ir em ployees. E. C. M ahan, S o u th e rn Coal & Coke Co., said th a t th e efforts of th e N a tio n a l Coal A ssociation a t W ash in g to n h ad p rev en ted leg islatio n an d h ad placed th e in d u s try in a m ore fa v o r
able lig h t w ith th e public.
Wh a t t h e Coal In d u s t r y Need s
T he esse n tials re q u ired fo r th e successful and ind e
p en d e n t conduct of th e bitu m in o u s in d u stry , as seen by M elvin A. T ray lo r, p re sid e n t of th e F i r s t N a tio n al B ank, Chicago, and first v ice-president of th e A m erican B a n k e rs’ A ssociation, who ad dressed th e convention on
“ T he L a y m a n ’s V iew point,” a r e :
(1 ) P eace w ith in th e in d u stry , m eaning th e re b y fr e e dom fro m lab o r troubles, and continuous o p eratio n w ith an ad e q u ate supply of coal.
(2 ) C o n stan t striv in g fo r m ore efficient salesm an sh ip and such b e tte r m a rk e tin g conditions as w ill b rin g f a ir p rices a t all tim e s— f a ir prices to th e o p erato rs, th e m in e rs and th e public.
(3 ) P ro v isio n fo r continuous fact-finding an d p u b licatio n of s ta tis tic s by th e in d u s try itself.
T h e wisdom displayed in th e coal in d u stry , said th e b an k e r, “seem ingly has n o t k ep t pace w ith its im p o r
tan ce and its extent. T he h is to ry of coal m in in g is an account of a long serie s o f q u a rre ls betw een o p e ra to rs an d employees, and th e blam e h as a p p a re n tly la in w ith both p a rtie s to th e q u a rre l.” In su p p o rt of th is con
te n tio n , M r. T ra y lo r tra c e d th e union m ovem ent in G re a t B rita in and th e g ro w th of th e so cialistic concep
tio n am ong th e m ine w o rk ers th e re . On th is side of th e w a te r, h e ad m itted , socialism h a s been less ra m p a n t, b u t lab o r d istu rb an ce s have been too fre q u e n t.
“ T he public,” he m ain tain ed , “should not be expected to to le ra te periodic dislocation of o u r economic s t r u c tu r e sim ply because th e v ario u s p a rtie s in an in d u s try seem unable to compose th e ir differences w ith o u t a com
plete cessatio n of w ork f o r some m o n th s.” E leven p e r ce n t o f th e s trik e s in th is co u n try have been in th e coal in d u stry . T his record is exceeded only by th e b u ild in g tra d e s , w ith 19J p e r cent, b u t th ese la tte r s trik e s w ere less im p o rta n t and involved f a r few er m en. S trik e s a re followed by in v estig atio n s, b u t little o r no im prov e
m en t in th e s itu a tio n . “ A re w e g o in g to a d m it th e fa ilu re of in d iv id u a l e n te r p ris e an d end w ith n a tio n a li
z a tio n ? ”
U nless th e in d u s try can d e m o n s tra te its a b ility to settle its own a ffairs, w a rn e d M r. T ra y lo r, g o v ern m e n t control will be inev itab le. F e d e ra l su p e rv isio n w a s not th e cu rse com m only p a in te d , b u t i t can c u re no ills.
I t can m erely w atch th e sy m p to m s a n d giv e th e alarm if d a n g e r ap pro aches. T h e ills o f coal h av e been diagnosed w ith ca re an d p re cisio n . O verdevelopm ent, accen tu ated by th e w a r, is g e n e ra lly reco g n ized as th e fu n d a m e n tal cause of b itu m in o u s in s ta b ility .
“ In se p arab ly bound up w ith th e f a c to r o f ov erdevel
opm ent is th e fa c to r of la b o r re la tio n s . T h a t s trik e s ten d to cause overdevelopm ent h a s b een well u n d ersto o d , b u t i t is q u ite as im p o rta n t to u n d e r s ta n d t h a t o v er
developm ent causes s trik e s . C o m p etitio n b etw e en fields w ith a fixed lab o r co st an d o th e r fields w ith a flexible labor cost m akes th e in d u s try fu n d a m e n ta lly u n sta b le and te n d s to in c re a se o verdevelopm ent. H ence, a p e r
m an en t cu re fo r o verd evelopm ent m u s t p ro v id e som e
th in g like u n ifo rm ity o f lab o r s ta n d a rd s .
“ In a b ro a d sense it is econom ically u n so u n d t h a t one- h a lf of th e in d u s try should be go v ern ed by a fixed and th e o th e r h a lf by a flexible lab o r cost. A r ig id w age r a te sp re ad u n ifo rm ly over a w ide t e r r it o r y w h e re w o rk in g co nditio ns an d liv in g costs v a r y m a te ria lly is also illogical. T h e ideal w a g e c o n tra c t, flexible to th e p o in t of a d ju s tin g e a rn in g s to v a rio u s w o rk in g condi
tio n s an d to th e ch a n g es in liv in g co sts a n d p ro fits in th e in d u stry , is n o t in s ig h t f o r th e im m e d ia te fu tu re , b u t we m ay exp ect a g ra d u a l im p ro v em en t in th e m u tu a l u n d e rsta n d in g by em ployers an d em ployees of each o th e r’s problem s an d needs, fro m w h ich im p ro v ed re la tio n s betw een th em , c o n tra c tu a l an d o th e rw ise , will n a tu ra lly en su e .”
T h is developm ent o f b e tte r la b o r re la tio n s , con
tin u e d M r. T ra y lo r, m u s t be le f t to th e in d u s tr y itse lf.
“ T he g o v ern m e n t can do no m ore th a n en fo rc e th e law a n d p ro te c t b o th sid es in th e ex e rcise o f t h e i r rig h ts as citizen s so t h a t th e issu es can be s e ttle d by peaceful m ean s an d n o t by fo rce. T h is calls fo r th e s u p p r e sion of law lessness, b o th in u n io n co m m u n itie s like H e rrin an d in th e n o n -u n io n m o u n ta in s o f W e st V ir
g in ia an d K entu cky . T h e p ublic should in s is t t h a t th e
Ju n e 17, 1926 C O A L A G E 86 3
collective b a rg a in in g q u estio n should be decided in each d is tr ic t on its m e rits by th e em ployers an d th e m en w ho w o rk in th e m ines, an d should condem n an y re s o rt to violence by e ith e r p a r ty .”
E lim in a tio n of h ig h -co st o p eratio n s is th e obvious rem ed y fo r th e p re s e n t u n sta b le conditions. I t h ad been hoped to accom plish th is by th e lo n g -term J a c k sonville a g re e m e n t, b u t th is hope w as b lasted by th e co m p etitio n of non -u n io n m ines. T he law of supply an d dem and h a s been w o rk in g a g a in s t th e un ion fields.
“ T he p e n a lty h a s, in m an y cases, fa lle n upon o p eratio n s n o t b asica lly uneconom ical, b u t placed in t h a t c a te g o ry b y a s itu a tio n w hich im posed on th e m a h ig h e r cost of p ro d u c tio n th a n p re v ailed in com petitive fields in n o n un io n t e r r it o r y .”
L a r g e r u n its of p ro d u c tio n w ere recom m ended as one of th e ste p s in th e u ltim a te solutio n of th e problem .
“ G ra d u ally w e a r e b eg in n in g to realize t h a t u n d e r m od
e r n co n d itio n s la rg e c o rp o ra tio n s offer th e only m ean s of h a n d lin g c e rta in of o u r in d u s trie s effectively and econom ically. U n d e r unified co n tro l of financial and p h y sical o p e ra tio n s it w ould be possible to accom plish m ore effectively th e econom ies in h e re n t in co-operative m a rk e tin g a sso c ia tio n s. T h e e lim in a tio n of u n n ec essary costs in d is trib u tio n , im p ro v em en ts in m etho ds an d s ta n d a r d s of q u a lity , b u ild in g up w id e r m a rk e ts, a d ju s t
m e n ts o f p ro d u c tio n to flu ctu a tio n s in dem and, an d th e d isa p p e a ra n c e of su rp lu s m in es and w o rk e rs a re p o ss ib ilitie s w hich can m o st effectively be realized u n d e r co n so lid atio n s o f o w n ersh ip . T h e firs t p ra c tic a l ste p in p ro m o tin g th e p lan is to im p ress th e idea upon o p e ra to rs, financial in te re s ts an d th e public.”
St u m b l e Al o n g Af t e r Gr e a t Br i t a i n
In th e closing m in u te s of th e session, R e tirin g P r e s i
d e n t Gould conducted h is successo r to th e c h a ir am id applau se. M r. B a rn u m d eclared t h a t he saw th re e m a jo r pro b lem s c o n fro n tin g th e asso c ia tio n — g o v ern m en t re la tio n s, re se a rc h an d m em b ersh ip . “U nless we a re c a re f u l,” he said , “we m ay find to o u r dism ay th a t G re a t B r ita in h a s w r itte n the' h is to ry of o u r coal in d u s try in ad v a n ce.”
T u rn in g to re s e a rc h he s ta te d t h a t if th e gas com p an ies could m a rk e t th e ir p ro d u c t a t 50c. p e r 1,000 c u .ft., fuel-oil co m p etitio n w ould be elim in ated . T he d is p a r ity b etw een su m m er an d w in te r loads a t th is tim e p re v e n ts th is an d holds back th e cam p aign fo r d o m estic h e a tin g b u sin ess. T he gas in te re s ts , how ever, a r e tr y in g to find new su m m er m a rk e ts o r m ethods of s to r in g g a s in su m m e r fo r w in te r use. T he accom p lish m e n t o f e ith e r of th e se ends m eans a b ro a d e r m a rk e t fo r coal.
A n o th e r p o ssib ility is th e developm ent of an a u to m a tic s to k e r f o r d om estic fu rn a c e s . E x p e rim e n ts a re b e in g m ad e w ith eq u ip m en t to c a r r y a h o p p er ch a rg e of 500 to 1,000 lb. of coal an d to be electrically con
tro lled . O ne te s t w ith h ig h -a sh , low B .t.u . coal had g iv en 7 lb. o f ste a m p e r pound of coal. T h e p e rfe c tin g o f su ch eq u ip m e n t also w ould p u t fu e l oil a t a d isad v a n ta g e . W ith th e s e p o ss ib ilitie s in m in d , P re s id e n t B a rn u m f e lt t h a t th e d ay w h en in c re a se d coal con su m p
tio n w ould o ffset th e d ed u c tio n s due to in c re a se d effi
cien cy w a s n o t so f a r d is ta n t.
T h e re s o lu tio n of th e N a tio n a l R e ta il Coal M er
c h a n ts ’ A s s o c ia tio n f o r c o -o p era tio n in w o rk in g o u t an d u s in g a slo g an to a d v e rtis e th e use of coal w as re a d a n d r e f e r r e d to th e p u b lic ity com m ittee.
A s s o c i a t i o n S h o w s A c t i v e I n t e r e s t i n S a f e t y
Records of Employees Essential to Keep Compensation Rates at Mini
mum—Problems of the Convalescent
S ta ff C o r r e s p o n d e n c e
C
O M P L E T E E L IM IN A T IO N or all prev en tab le accid en ts w as th e goal set fo r th e coal m in in g in d u s try a t th e s a fe ty co nference held a t th e D rak e H otel, C hi
cago, J u n e 10, as p a r t of th e p ro g ra m of th e n in th a n n u a l convention of th e N a tio n a l Coal A ssociation.
T h ere w as g e n e ra l a g re e m e n t am ong th e coal m en p re s e n t t h a t ed ucation of th e w o rk e rs w as th e m ost neces
s a ry ste p in accom plishing th is re su lt. T h is ed ucational cam paign , it w as fe lt, could be m ade m o st effective if p u t upon a com p etitiv e basis. M ore com plete reco rd s on th e accid en t h is to ry of ind iv id ual em ployees and m o re in te n siv e stu d ie s of accident cu rv es p lo tte d fro m m ine re co rd s also w ere u rg e d as aid s in red u cin g th e n u m b er of acciden ts.
Ma n t h e Bi g g e s t o f Ou r Ha z a r d s
The h u m an elem ent is th e b ig g e s t fa c to r in accid en t- p re v en tio n w ork, declared P h il H. P e n n a , c h a irm a n of th e co m m ittee on sa fe ty , in op enin g th e discussion.
“ R ecklessness is a ty p ical A m erican c h a ra c te ris tic . I t is n o t only in th e coal-m in ing in d u s try t h a t d e a th s in th e U n ited S ta te s a re a t a h ig h e r ra te th a n in E u ro p e a n co u n trie s. T he sam e th in g is tr u e of p ra c tic a lly all occupations an d is to be accounted fo r to a co nsiderab le e x te n t by th e u n fo rtu n a te re ad in ess of A m erican w o rk m en to ta k e chances.
“ In m any in d u s trie s th e in d iv id u a l p ay s th e p en a lty of h is own heedlessness. In o u r in d u s try , on th e o th e r han d, only too fre q u e n tly th e carelessn ess of one causes th e in ju ry of o th e rs, as well as th e d e stru c tio n o f p ro p e r ty an d loss of tim e to th e o p erato r. Y o u r co m m ittee believes t h a t it ca n n o t p u t too m uch em p h asis on th e im p o rtan ce of tr a in in g th e in d iv id u a l in s a fe ty -firs t know ledge an d h a b its. I t believes t h a t m oney expended in p ro m o tin g p ro p e r ca re fu ln e ss on th e p a r t of m in e em ployees will be re tu r n e d m an y fo ld to th e o p e ra to rs in c u rrin g it.”
M r. P e n n a cited th e ra p id in cre ase in th e n u m b e r of c h a p te rs of th e Jo seph A. H olm es S a fe ty A sso cia tio n as p ro o f t h a t in te r e s t in th e s a fe ty m ovem ent is g ro w ing. T he asso c ia tio n a t its la s t a n n u a l m e e tin g divorced its e lf fro m all legal co ntrol an d re s p o n sib ility f o r th e local c h a p te rs , w hich now a re m em b ers o f an u n in c o r
p o ra te d society know n as th e H olm es S a fe ty A sso ciatio n . The p a r e n t body co n tin u es as a n a tio n a l in c o rp o ra te d o rg a n iz atio n .
How one com pany by re o rg a n iz in g its s a f e ty w o rk w as able to redu ce its ac cid en t r a te p e r 1,000 m a n -d a y s fro m 1.33 to 0.71 p e r c e n t in less th a n th r e e y e a rs w as ex plained to th e co nv en tion by J . W illiam W e tte r, gen eral m a n a g e r of th e b itu m in o u s o p e ra tio n s of M a
deira, H ill & Co.
C o m petitio n is th e k ey n o te of th e ac cid e n t-p re v e n tio n cam p aig n u n d e rta k e n by p ro d u c e rs in th e S o u th e a s t, acco rd in g to R. E . H ow e, s e c re ta ry , S o u th e rn A p p a lach ia n Coal O p e ra to rs ’ A sso ciatio n , w ho a d d re s s e d th e convention on “ One W ay to I n te r e s t E m p lo y ees in S a fe ty W o rk.” H is o rg a n iz a tio n h a s fo rm e d a sub -
8 6 4 C O A L
s id ia ry body know n as th e S o u th e rn A pp alach ian Effi
ciency A sso ciatio n to w hich su p e rin te n d e n ts, m ine fo rem en , s a fe ty in sp ecto rs, fire bosses, e lec trician s and o th e r key m en belong.
A ccid ent p re v en tio n , of course, is th e m o st c e rta in m ethod of k eeping th e cost of com p ensation in su ra n c e to th e m inim um , s ta te d J. T. R upli, s u p e rin te n d e n t of th e com pen sation d e p a rtm e n t o f th e Chicago, W ilm in g to n & F ra n k lin Coal Co. W ith o u t m in im izin g th e im p o rta n c e o f p re v en tiv e w ork, how ever, it w as th e sp ea k ers opinion th a t th e in d u s try h ad no t g iven enough a tte n tio n to th e efficient h a n d lin g of th e accid en t s itu a tio n a f te r th e accid ent h as occurred. One g re a t d ra w back to th is co n sid eratio n h a s been th e “com p ensation com plex.” O p e ra to rs h ave tre a te d com pensation claim s as a m a tte r of in su ra n c e in s te a d of as an o p e ra tin g problem , d esp ite th e fa c t t h a t in su ra n c e ra te s a re based upon th e ph ysical and m o ral h a z a rd s of th e in d u s try a n d its accid en t experience.
A s th e first step in re d u c in g com pensation costs a f te r accidents, M r. R upli recom m ended th e e sta b lish m e n t of com p en satio n or p ersonnel b u re a u s to m a in ta in p erso n al co n tac t w ith in ju re d em ployees an d fu n c tio n as a con
n e c tin g lin k betw een th e o p e ra tin g d e p a rtm e n t an d th e in su ra n c e agency. A n o th e r n ec essary step is to em ploy only m en physically fit fo r th e jobs to w hich th e y m ay be assig n ed . A d m in is tra tio n of first-a id by specially tra in e d m en is esse n tial. In e x p e rt first-a id tre a tm e n t in m a n y cases does m ore h a rm th a n good and m ay a g g r a v a te th e in ju ry .
Report Befo re Ag g ravatio n or In f e c t io n
E v e ry in ju re d m an should be re q u ire d to re p o rt to th e com pany su rg e o n o r d octor fo r e x a m in a tio n a t th e e a rlie s t p ra c tic a l m om ent. Such a re q u ire m e n t s a f e g u a rd s all p a r tie s of in te re s t. T he in ju re d m an receives p ro p e r tre a tm e n t, th e em ployer receives th e n ec essary s ta tis tic a l and m edical d ata, an d m a lin g e rin g and f r a u d u le n t claim s a r e effectively d isco u rag ed . T h e p e r
sonal c o n ta c t m a in ta in e d w ith th e in ju re d by th e com p e n s a tio n b u re a u lik ew ise red u ces th e n u m b e r o f u n n e c e ssa ry claim s an d also im p resses th e em ployee w ith a sense o f com pany in te r e s t in h is w e lfa re . W o rk in g o f th e “co m p en sa tio n com plex” u n d e r such co n d itio n s is im possible.
W hen th e in ju re d m an is re a d y to r e tu r n to w ork, th e decision w h e th e r he is able to re su m e h is fo rm e r ta s k s o r should be g iven lig h te r d u tie s should r e s t w ith
som eone com petent to p ass ju d g m e n t. M ine bosses as a rule, said M r. R upli, a re in clin ed to a c t upon th e th e o ry t h a t th e m a n ’s d isc h a rg e fro m m edical c a re is p ro o f t h a t he is re a d y to ta k e h is old job. A t o th e r tim es, th e y will en co u rag e e x a g g e ra te d claim s by g iv in g th e r e tu r n e d w o rk e r a lig h te r ta sk .
E v e ry accident, how ever, triv ia l, should be re p o rte d . N eglect of s lig h t in ju rie s som etim es lead s to serio u s p e rm a n e n t d isa b ilitie s. Such re p o rts w ill f u r n is h d a ta fo r a s ta tis tic a l stu d y o f accid en t c u rv e s w h ich m ay be com pared w ith s im ila r d a ta fro m o th e r m ines. T h is c o m p arativ e stu d y w ill give th e g ro u n d w o rk fo r f u r th e r in v e stig a tio n of ac cid en t-p re v en tio n m ethods. T hese stu d ie s should be m ade by m ine s a fe ty co m m itte es con
s is tin g of th e o p e ra tin g executive, m in e su p e rin te n d e n t, bosses, s a fe ty in sp ecto r an d m a n a g e r of th e com p ensa
tio n b u re au .
“ A nd w hen I say s a fe ty in s p e c to r,” M r. R u pli de
clared, “ I do n o t m ean th e old p ra c tic a l m in e r w ho h as seen h is b e st days a t th e face or th e tech n ic al e n g in e e r fre s h fro m college, b u t one w ho h a s h ad sufficient te c h nical and p ra c tic a l ex perien ce to give h im th e balance of d iscre tio n . Such s a fe ty in sp e c to r sh ou ld re p o rt d ire c t to th e executive m a n a g e m e n t.” H is d u tie s should include “perio dical in sp ectio n s of th e m in e p ro p e rtie s w ith th e view of checking u n sa fe an d d a n g e ro u s m in in g p ra c tic e s and v io latio n o f m in in g law an d com pany ru les fro m th e s ta n d p o in t of ac cid en t p re v e n tio n .”
T he H a rla n C o unty Coal O p e ra to rs ’ A sso ciation , W.
A. E llison, p re s id e n t of th a t asso ciatio n , to ld th e con
v ention, h as in stalle d a sy stem o f c e n tra liz e d re p o rts to show th e location o f an y em ployee an d h is c re d it s ta n d in g w ith fo rm e r em ployees an d a com plete re co rd of accidents.
Do es Ra t e of Pay Af f e c t Ac c i d e n t s?
M r. E lliso n c ritic iz e d th e in s u ra n c e com pan ies fo r th e ir v a ry in g ra te s . Som e com panies, he said; a r e w ith d ra w in g fro m th e m in in g fields a n d re fu s e to ren ew e x p irin g policies. R a tin g s a re n o t alw ays b ase d on p erfo rm an c e. H e knew of cases w h e re a m in e w ith a low accid en t r a te h ad been p enalized an d one w ith a h ig h ac cid en t r a te h ad h ad its p re m iu m s red uced . T he N a tio n a l Coal A sso ciation , he th o u g h t, should look in to th e q u estio n o f ra tin g s so t h a t sa fe m in es m ig h t receiv e th e p ro p e r co n sid eratio n .
J. G. B rad ley , E lk R iv er Coal & L u m b er Co., D undon, W. Va., a n d Tom L. L ew is, N ew R iv er Coal O p e ra to rs ’ A sso ciation , C h arlesto n , W. Va., too k s h a rp issu e w ith th e s ta te m e n t of one sp e a k e r w ho claim ed t h a t h ig h ra te s of p ay d isco u ra g ed accid en ts. M r. L ew is a s s e rte d t h a t w ages h ad n o th in g to do w ith th e q u estio n . E . C.
M ahan, S o u th e rn Coal & Coke Co., K noxville, T en n., in d o rsin g w h a t M r. E lliso n h ad said upon th e a ttitu d e of th e in s u ra n c e com panies, declared t h a t m an y o p e r
a to rs w e re b e in g fo rced to c a r r y t h e i r ow n in su ra n c e . One com pany, ta k in g its chances u n d e r its com m on-law lia b ilitie s, h ad c u t its co m p en sa tio n co sts $30,000 in n in e te e n m o n th s. U nd ue lib e ra lity on th e p a r t of in s u ra n c e co m p anies in p a y in g claim s h ad cau sed in c rease d ra te s .
T he session closed w ith th e firs t sh o w in g of “ T h e S to ry of a R ock-D usted M ine,” a film p ro d u c ed u n d e r th e d ire c tio n o f th e U. S. B u re a u of M ines in co
o p e ra tio n w ith th e C hicago, W ilm in g to n & F ra n k lin Coal Co. M ost of th e scenes h a d been ta k e n u n d e r
g ro u n d a t N ew O rie n t. A few sequences p ic tu re d som e of th e ex p e rim e n ta l explosions a t B ru ceto n .
A G E Vol. 2 9 , N o . 24
Phil H. Penna
S e c r e t a r y - T r e a s u r e r o f I n d i a n a C o a l O p e r a t o r s A s s o c i a t i o n a n d C h a i r m a n o f t h e C o m m i t t e e o n S a f e t y .
Ju n e 17, 1 9 2 6 C O A L A G E 8 6 5
By Pooling Purchases of Mine and Store Supplies Operators Hope to Reduce Expenditures
S ta n d a r d iz a tio n M a k e s P o o lin g E a s y — B itu m in o u s I n d u s tr y S p e n d s 157 M illio n D o lla r s A n n u a lly for M in e M a in te n a n c e S u p p lie s — C o -o p e r a tiv e B u y in g M a k e s S m a lle r S to c k s P e r m is s ib le
S ta ff C o r r e s p o n d e n c e
T
H E B U Y IN G P O W E R of th e b itu m in o u s in d u st r y an d how it m ay be m arsh a lle d effectively to red uce costs th ro u g h pooled p u rch ases, w as th e th em e o f a g ro u p m eetin g of o p e ra to rs ’ p u rc h a sin g a g e n ts held a t th e D rak e H otel, Chicago, Ju n e 9, as p a r t of th e p ro g ra m of th e n in th an n u al convention of th e N a tio n a l Coal A ssociation . A t th is m eetin g , th e m eth o d s by w hich th e o p e ra to rs in one field— th e New R iv e r d is tr ic t of W est V irg in ia — w ere s u b s ta n tia lly re d u c in g th e cost p rice s on m erc h an d ise p u rc h ased fo r re sale in com pany sto re s w ere explained. T h is develop
m en t still is in its in fan c y , b u t th o se p a rtic ip a tin g in it a lre a d y a r e s tu d y in g how th e m ovem ent can be extended to ta k e in som e of th e m ine supplies fo r w hich th e b itu m in o u s in d u s try spends over $157,000,000 p e r year.
Jo h n C. D insm ore, a s s is ta n t p ro fe sso r, com m ercial o rg a n iz a tio n s, an d p u rc h a s in g a g e n t fo r th e U n i
v e rs ity o f C hicago, opened th e p re s e n ta tio n w ith a discussion of th e g e n e ra l p rin c ip le s o f pool b u y in g . W a lte r M u ir, p u rc h a s in g a g e n t, R aleig h Coal & Coke Co., and c h a irm a n of th e p u rc h a s in g a g e n ts divisio n o f th e N ew R iv er Coal O p e ra to rs ’ A sso ciatio n , follow ed w ith a re c ita l of w h a t w as b ein g accom plished in h is d is tr ic t in g ro u p b u y in g o f m e rc h a n d ise fo r com pany sto re s. A llan H. W illett, d ire c to r, B u re a u of Coal Econom ics, N a tio n a l Coal A ssociation , b ro u g h t th e d iscu ssio n to a close w ith a r e view of th e b u y in g pow er of th e in d u s try an d a c o n sid e ra tio n of some of th e pro b lem s to be m et in pooled p u rc h a se s o f m in e supplies. M. L.
G arvey, p re s id e n t, N ew R iv er Coal O p e ra to rs ’ A sso cia tio n , presid ed .
T he A m e ric a n p lan o f d is trib u tio n , sa id P ro f. D in s
m ore, is b u ilt up a ro u n d th e fa c t t h a t la r g e r volum es m ake it p o ssib le fo r th e fa c to ry to o p e ra te m o re eco
nom ically a n d fo r th e d is tr ib u to r to red u ce h is u n it costs. “ T h e pro blem o f th e pool b u y e r is to sec u re th e co -o p era tio n o f th e in d iv id u a l m em b ers of a c e rta in g ro u p in o rd e r t h a t t h e ir jo in t o rd e r m ig h t be la rg e en o u g h to w a r r a n t th e lo w er p ric e .” W hen an a tte m p t is m ad e to se c u re th is co -op eratio n , th e pool b u y e r im m e d ia te ly d isco v ers a w ide v a ria tio n in th e s ta n d a rd s used b y th e in d iv id u a l m em b ers. T h is m ean s t h a t th e re m u s t be a c a re fu l a n a ly s is an d co m p ariso n o f e x is tin g s ta n d a r d s a n d g e n e ra l a g re e m e n t upon new ones.
W ith so m e th in g a p p ro a c h in g s ta n d a rd iz a tio n in speci
fications, co st v a r ia tio n s quickly challenge a tte n tio n an d th e w ay is opened fo r a ca m p a ig n fo r u n ifo rm ity in p rice s. V a ria tio n s on id e n tic a l com m odities, s a id P ro f.
D in sm o re, h av e ra n g e d fro m 10 to 3,000 p e r cen^. “ I t
is ev id en t th a t th e m ere act of ro u tin g th e o rd e rs fo r an y g ro u p of in d iv id u als th ro u g h one c e n tra l office m u st au to m atically call a tte n tio n to so m an y p rice v a ria tio n s on id en tical com m odities t h a t b ig sav in g s w ould re s u lt.”
R ecitin g th e sav in g s effected b y pooling p u rc h a se s f o r sm all colleges, social ag en cies, u n iv e rs itie s an d b u ild in g m a n a g e rs ’ asso ciatio n s, P ro f. D in sm o re fe lt th a t th e ex perien ces of th e se g ro u p s m ade it “sa fe to conclude th a t an y g ro u p of p u rc h a sin g officers w ho will co-operate can th ro u g h t h e ir jo in t p u rc h a s in g pow er r e duce th e a v e ra g e u n it costs of sup plies 10 p e r cent.
Pool b u y in g , to be effective, m u s t go h a n d in h a n d w ith a stu d y of th e re la tiv e effectiveness o f th e v a rio u s com m odities offered, an d th ese stu d ie s should re s u lt in f u r th e r re d u cin g m a te ria l costs. T h ese sav in g s fro m bo th so urces som etim es cu t u n it costs in h a lf. T he d ire c t financial re tu r n s on th ese stu d ie s an d th ese pools should n ev e r be less th a n fo u r tim e s th e expense, an d th e y f r e qu en tly ru n h ig h e r. Pool b u y in g , sk illfu lly d irec ted , should som e
tim e s m ean j u s t th e difference be
tw een w r itin g th e re s u lt o f th e y e a r’s b u sin ess in black in k in s te a d of re d .”
T h e p rin c ip le u n d e rly in g th e a s so ciated p u rc h a s in g p lan of th e New R iv er p ro d u c ers, said M r.
M u ir, “ is th e ap p lica tio n of th e pow er of c o n c e n tra te d effort as d is tin g u is h e d fro m in d iv id u a l e ffo rt.”
Q u a n tity b u y in g m ean s lo w er u n it p rice s and , in m an y cases, carload , in s te a d of th e h ig h e r le ss-th a n -c a r- load f r e ig h t ra te s . So p leased a re th e com p anies w ith re s u lts a lre a d y a t ta in e d t h a t “ it is o u r in te n tio n to g ra d u a lly w o rk th is up to a p o in t w here we w ill be b u y in g a la rg e volum e of o u r m e r
ch and ise in pooled ca rs, w hich w ill m ake a tre m e n d o u s sav in g a t th e end of th e y e a r.”
D r. W illett c a rrie d th e d iscu ssio n a step f u r t h e r by p re s e n tin g som e of th e p ro b lem s to be m e t if th e p lan is exten ded to ta k e in p u rc h a se s o f m in e sup p lies. P s y chological d ra w b ack s to such an ex ten sio n a r e in e r tia and th e u ltra -c o m p e titiv e co n d itio n s u n d e r w h ich th e b itu m in o u s in d u s try is o p erated . “ O f th e p ra c tic a l ob
stacles in th e w ay o f th e success o f co -o p era tiv e b u y in g , th e m ost se rio u s is due to th e la rg e n u m b e r o f sty les, sizes an d shap es of som e of th e com m on k in d s o f m in e supplies. T he com pan ies e n te r in g in to th e co -o p era tiv e p u rc h a s in g of m in e su p p lies w ill b en efit m o st in th e p u rc h a se of th o se m a te r ia ls w h ich a r e w id ely u sed in s ta n d a r d fo rm s. T he final re s u lt o f th e p re s e n t a c tiv e in te r e s t in s ta n d a rd iz a tio n w ill be to w id e n th e p ro fit
able field of c p o ia tio n o f co -o p era tiv e b u y in g .”
