Coal supplied by Pennsylvania Coal & Coke Corporation and prices received therefor-Continued

LANCASTER, OXFORD & SOUTHERN RAILWAY CO.

Coal supplied by Pennsylvania Coal & Coke Corporation and prices received therefor-Continued

SUSQUEHANNA & NEW YORK RAILROAD

COAL TO DELAWARE, LACKAWANNA & WESTERN RAILROAD CO.

In November, 1919, there was reconsigned by us to the Delaware, Lackawanna & Western Railroad 269 tons at $2.95. In December, 1919, the Delaware, Lackawanna & Western Railroad got 1,948 tons at an average price of $2.94. Records are not available to show whether this was confiscated, reconsigned, or shipped coal.

Coal confiscated by Delaware, Lackawanna & Western Railroad during 1920, between January 1 and June 30, amounted to 2,143 tons, the average price of which was $3.142.

There were no transactions with the Delaware, Lackawanna & Western Railroad Co. other than the above, for the period January 1, 1919, to December 31, 1927.

COAL TO NEW YORK, NEW HAVEN & HARTFORD RAILROAD CO.

During 1920 coal confiscated by the above railroad amounted to 14,247 tons the average price of which was $3.182.

There were no transactions with this railroad other than the above, for the period January 1, 1919, to December 31, 1927.

Coal to New York Central Railroad, year 1920, and prices received therefor

During 1920 coal confiscated by the Lehigh Valley Railroad Co. amounted to 2,751 tons, the average price of which was $3.202.

There were no transactions with the Lehigh Valley Railroad Co., other than the above for the period January 1, 1919, to December 31, 1927, except a small transaction in December, 1919.

COAL TO PHILADELPHIA & READING RAILWAY CO.

During 1920 this railroad confiscated 8,793 tons, average price of which was $3.893.

Re

There were no transactions with the above company for the period January 1, 1919, to December 31, 1927, except in 1919 they got 1,855 tons of coal. cords are not available to show whether this was confiscated, reconsigned, or shipped coal.

Mr. EATON. Mr. Searles, did the Pennsylvania Coal & Coke Co. sign an agreement putting into force and effect the Jacksonville wage scale?

Mr. SEARLES. We signed an agreement outlining the districts.
Mr. EATON. That ran for what time?

Mr. SEARLES. Three years.

Mr. EATON. Did you keep and perform that agreement?
Mr. SEARLES. Did we what?

Mr. EATON. Did you keep it?

Mr. SEARLES. Oh, yes; we kept it.

Mr. EATON. In other words, you ran according to the terms and conditions during the period specified?

Mr. SEARLES. Yes.

Mr. EATON. Did you regard it as a contract that was legally binding?

Mr. SEARLES. We kept it.

Mr. EATON. And morally binding?

Mr. SEARLES. Well, an agreement, I suppose, would be considered legally and morally binding. At any rate, we kept the agreement. We had always kept them theretofore and we did not deviate in this

case.

Mr. EATON. In other words, there was never any question in your mind but that the letter and spirit of the agreement ought to be lived up to?

Mr. SEARLES. We hoped it would be modified, but it was not. Senator WHEELER. You say you hoped that it would be modified. Were you one of the men that applied to the Government down here asking to have it modified?

Mr. SEARLES. No, sir.

Senator WHEELER. You felt that you were not at liberty to break the contract, did you, or modify it, unless both sides agreed to a modification?

Mr. SEARLES. Correct.

Mr. EATON. How many years have you had contracts of a similar nature, Mr. Searles?

Mr. SEARLES. Well, I understand that we have had one since about 1898.

Mr. EATON. Did those contracts include in certain events penalties to be enforced against the union?

Mr. SEARLES. The most recent ones did; those with which I am familiar.

Mr. EATON. Had your company ever enforced those penalties? Mr. SEARLES. I can not answer that question.

Mr. EATON. What are your views as to the advisability of having a wage scale with the United Mine Workers, Mr. Searles? What effect does it have on the industry, so far as tending to stabilize it or otherwise?

Mr. SEARLE. Well, I do not know that it has had very much tendency to stabilize it recently. I think that part of the demoralization is due to the fact that we were obliged to pay an uneconomic scale.

Mr. EATON. Would you prefer to work under nonunion conditions of union conditions?

Mr. SEARLES. I do not know. I have not had long enough experience with the open shops. I prefer to call it an open shop, because that is what it is with us.

Mr. EATON. Have you had any conversation with any officials of the New York Central, or any other railroad, with reference to their desire or offer to pay less than scale prices from time to time? Mr. SEARLES. Do you mean for their coal?

Mr. EATON. Yes.

Mr. SEARLES. Surely. We are always talking about prices. Sometimes we talk about their being higher also.

Mr. EATON. Have you talked about their being higher in the last two years or the last year and a half?

Mr. SEARLES. Yes.

Mr. EATON. You mean that you wanted to get a higher price? Mr. SEARLES. As a matter of fact, we did.

Mr. EATON. What price was that, Mr. Searles?

Mr. SEARLES. What railroad do you want to talk about?

Mr. EATON. Whatever railroad you have in mind, sir.

Senator GOODING. We had better have information as to all the railroads.

Mr. SEARLES. My understanding as to what he wants to find out is whether there has been any increase in price.

Senator GOODING. Yes. Just confine yourself to that information at the present time.

Mr. SEARLES. In 1926, up until October, inclusive, the New York Central paid us $2 for coal. In November the price was $2.25 and in December the average was $2.316.

Senator WHEELER. That is the New York Central?

Mr. SEARLES. Yes, sir.

Senator WHEELER. They paid you more since you went on the nonunion basis than before?

Mr. SEARLES. No. This is 1926.

Senator WHEELER. I beg your pardon. I misunderstood you. Mr. SEARLES. That price carried along until about March, when there was a reduction made to $2.10, and, finally, to $2.00 in 1927. In other words, they went up with the market demand. We had no contract with them and they increased the price, or it was agreed that the price would be increased, because of the market conditions. Senator WHEELER. What are they paying you now?

Mr. SEARLES. $1.90.

Senator WHEELER. What does it cost you to produce coal?

Mr. SEARLES. Our cost under the Jacksonville scale for three years was $2.27. In January it was $2.47.

Senator GOODING. This year?

Mr. SEARLES. This year.
Senator WHEELER. $2.47?

Mr. SEARLES. Yes, sir.

Senator WHEELER. And you are getting $1.90 for the coal?

Mr. SEARLES. Well, Senator, I do not know what you mean to infer; but, of course, I am giving an average cost, although a great deal of our coal costs much less.

Senator GOODING. That is what the committee wants you to go into.

Mr. SEARLES. We have a variation of prices for costs during a month of $1 between the low mine and the high mine, depending on whether it is a thick vein and what the conditions may be. Senator GoODING. A variation of $1?

Mr. SEARLES. Yes; a variation or range.

Senator GOODING. In what mines are you producing coal at the low rate and at what are you producing that?

Mr. SEARLES. I have not the details with me, Senator, but I should say it would range from $1.90 up.

Senator GOODING. The average cost of production is what the committee wants to find out.

Mr. SEARLES. It varies from day to day.

Senator GOODING. You have an annual cost of production?

Mr. SEARLES. I have given that to you.

Senator GOODING. That is about $1.90 to $2?

Mr. SEARLES. I said that the average cost under the Jacksonville agreement was $2.27.