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own fuel, such as the Chicago & North Western. The Chicago, Burlington & Quincy have just gotten ready to mine their own coal; also the Illinois Central.

Senator POINDEXTER. Do they mine coal for the public also?

Mr. MODERWELL. I think not. There was a time when they did sell part of their screenings for that purpose, but I think that has been stopped.

Senator POINDEXTER. Are the railroad companies stockholders in the coal companies that you are connected with?

Mr. MODERWELL. No, sir.

Senator POMERENE. I would like to ask a question. What is the name of your company?

Mr. MODERWELL. I have just sold out my business. I have been connected with the United Coal Mining Co.

Senator POMERENE. In Chicago?

Mr. MODERWELL. My office has been in Chicago; yes, sir. The mine is in Franklin County, Ill.

Senator POMERENE. What was the capacity of your mine?

Mr. MODERWELL. It produced last year 1,300,000 tons, the two mines.

Senator POMERENE. What has your company produced up to date, during this year?

Mr. MODERWELL. Well, I can tell you very roughly. In April of last year my company produced 125,000 tons of coal; in April of this year it produced 135,000 tons. In May of last year we produced about 70,000 tons, and in May of this year a little less than 140,000.

Senator POMERENE. And will that ratio prevail as to other months of this year as compared with last year?

Mr. MODERWELL. Up to the 1st of August, about. We laid practically idle last summer.

Senator POMERENE. What did you pay your miners last year?

Mr. MODERWELL. We have a miners' representative here who can probably testify more accurately as to that than I can. The mining rate in that field, prior to the 1st of April, was about 57 cents. That is simply the mining rate.

Senator POMERENE. What is it this year?

Mr. MODERWELL. It was 61 cents approximately.

Senator POMERENE. What was the cost of your coal to the company at the mouth of the mine last year?

Mr. MODERWELL. For the entire year, do you mean?

Senator POMERENE. Yes.

Mr. MODERWELL. It was approximately $1.38, something like that. Senator POMERENE. What is it this year?

Mr. MODERWELL. We have had only two months of this year. The cost, of course, was considerably more. I could not tell you-about 18 cents a ton, roughly, more.

Senator POMERENE. About 18 cents a ton. What did you sell the coal at last year?

Mr. MODERWELL. Our average selling price of last year was approximately $1.30.

Senator POMERENE. That was your average selling price?

Mr. MODERWELL. Yes, sir.

Senator POMERENE. What was your minimum and maximum selling price?

Mr. MODERWELL. I could not answer that.

Senator POMERENE. Approximately.

Mr. MODERWELL. You see we make so many different sizes of coal. It would be pretty hard to answer. We make 12 or 13 different sizes.

Senator POMERENE. Will you please answer as to the particular grade?

Mr. MODERWELL. Well, the fine coal that the Senator referred to was sold on contract at about 85 cents-the figure he spoke of. That is sold all that way. Large consumers buy that for steam. Senator POMERENE. That is not run-of-mine?

Mr. MODERWELL. No, sir; that is what we call slack or screenings. The large coal sold reached as high as $3.75 in the winter time. Senator POMERENE. That is grate coal?

Mr. MODERWELL. We make seven sizes of coal and practically all sell at the same price.

Senator POMERENE. What was your run-of-mine selling at?

Mr. MODERWELL. We do not make run-of-mine. That figure that I gave you for our cost was our run-of-mine return, throwing all these sizes together.

Senator POMERENE. What was your average price of coal this year?

Mr. MODERWELL. The price of domestic coal has averaged from $3 up to $3.50.

Senator POMERENE. What was the increase over the year before? Mr. MODERWELL. As I said it reached a maximum of $3.75 last year.

Senator POMERENE. We are talking about averages now.

Mr. MODERWELL. Well, the figure I am giving you as sales prices this year are so-called domestic sizes or large sizes.

Senator POMERENE. The domestic is only a small proportion of your production, I take it?

Mr. MODERWELL. If you want me to translate that into mine-run prices, I will be glad to do it.

Senator POMERENE. I should be very glad to have you do it.

Mr. MODERWELL. The mine-run price for April, as I remember, was about $2.25.

Senator POMERENE. This April?

Mr. MODERWELL. Yes, sir.

Senator POMERENE. What was it last April?

Mr. MODERWELL. About $1.18 or $1.20, something like that. Senator POMERENE. What are you selling your coal at now for industrial purposes, and to the railroads?

Mr. MODERWELL. Our company has no railroad orders.
Senator POMERENE. Well, for manufacturing purposes.

Mr. MODERWELL. I should say that somewhere between $3 and $3.50, would be a fair statement of the average.

Senator POMERENE. Are you familiar with the coal conditions in Ohio?

Mr. MODERWELL. Only in a very general way.

Senator POMERENE. Can you tell us what the average cost of production is there?

Mr. MODERWELL. No, sir; there are, however, some gentlemen here from Ohio.

Senator POMERENE. Are you familiar with the conditions in the Pennsylvania field?

Mr. MODERWELL. In a very general way only.

Senator POMERENE. Do you know what the average cost of production is there?

Mr. MODERWELL. No, sir. There are some people from Pennsylvania here who will testify with regard to that.

Senator POMERENE. Are you familiar with the industrial conditions throughout the United States?

Mr. MODERWELL. Well, I have the same information that comes to the average citizen, I think, about the conditions.

Senator POMERENE. I want to ask you a question bearing upon that. Is it your judgment, from your investigation of the subject, that there are about as many men employed in the factories throughout the United States now as there were a year ago?

Mr. MODERWELL. Yes, sir.

Senator POMERENE. And two years ago?

Mr. MODERWELL. I should suppose so; yes, sir.

Senator POMERENE. You believe, do you not, that the output of those factories during or since January 1 is equal if not more than the output of those factories during the years 1916 and 1915?

Mr. MODERWELL. I should suppose so, if they had been able to get transportation for it.

Senator POMERENE. Then it must follow, must it not, that it requires substantially the same amount of fuel this year, or six months of this year, as it did for the corresponding months last year or the year before last?

Mr. MODERWELL. I should say more.

Senator POMERENE. You would say more. During the six months of this year there has not been any special surplus on hand for those manufacturing plants, has there?

Mr. MODERWELL. I should not suppose so; no, sir.

Senator POMERENE. It must follow, then, that there has been substantially the same amount of coal mined since January 1, 1917, that was mined during the corresponding months of last year and the year before?

Mr. MODERWELL. I have no doubt there was more mined.

Senator POMERENE. And it must follow also that as much if not more coal was transported during these months since January 1 as there was during the corresponding months last year or the year before?

Mr. MODERWELL. Yes, sir.

Senator POMERENE. So, then, it is not true that this question of transportation has been responsible for these prices?

Mr. MODERWELL. Well, I do not know that that is the only question, but the demand is still way in excess of what it was a year ago. Senator POMERENE. We will get to that in a moment. Transportation alone has not been responsible for it?

Mr. MODERWELL. Not entirely; no, sir; I would not say that was the only thing.

Senator POMERENE. And not in a very material degree?
Mr. MODERWELL. Oh, yes, sir; to a material degree.

Senator POMERENE. Very well. The cost of transportation this year has not been in excess of what it was last year or the year before?

Mr. MODERWELL. To the shipper, do you mean?

Senator POMERENE. Yes.

Mr. MODERWELL. In a general way-you mean on other commodities than coal?

Senator POMERENE. I am speaking of coal.

Mr. MODERWELL. No; I should say not, except in a small degree. It has in Illinois, I know. The rate has been raised in the last year. Senator POMERENE. And in Indiana the rate has been somewhat decreased?

Mr. MODERWELL. I do not know about that.

Senator POMERENE. Now, the cost of mining the coal has not substantially increased, except in an amount of about 10 to 30 cents per ton in various different localities?

Mr. MODERWELL. I testified a while ago that I thought the increased cost, taken as a whole, was 50 cents a ton in our locality. Senator POMERENE. Do you mean by that miners' cost alone? Mr. MODERWELL. Oh, no, sir.

Senator POMERENE. The total cost?

Mr. MODERWELL. The total cost.

Senator POMERENE. Very well. Have you examined, as a member of this committee

Mr. MODERWELL. Excuse me. I would like to make a correction there. I stated the cost to my own company at one time, stating that it was approximately 18 cents, but I am speaking of the output, say, of Illinois as a whole, when I say 50 cents a ton. You asked me as to the averages.

Senator POMERENE. That is all right; I am glad you corrected it. Have you investigated the price of coal that has been prevailing throughout the United States during the last six months?

Mr. MODERWELL. Well, I have read the coal-trade papers, which give a pretty good idea.

Senator POMERENE. What is the average increase of price of coal to the consumer this year as compared with last year?

Mr. MODERWELL. Well, it has been very large. I could not translate that into figures.

Senator POMERENE. About how much?

Mr. MODERWELL. Oh, I can only speak of the district with which I am familiar. I should say 75 to 100 per cent, perhaps.

Senator POMERENE. That is a very low estimate, is it not?

Mr. MODERWELL. It is only an estimate. I do not claim to be accurate regarding it.

Senator POMERENE. In many localities it has increased two to three hundred per cent, has it not?

Mr. MODERWELL. I do not think if you take the average price return to the mines, that that is true. There is some coal-each miner has some surplus coal which undoubtedly has been sold at a high price. There has been a raise made in the selling price on account of that.

Senator POMERENE. You know that in Ohio coal that sold a year ago at $1.90 is now selling at $5 and $5.50, do you not?

Mr. MODERWELL. I have only casual information about Ohio. Senator POMERENE. Have you any information about it?

Mr. MODERWELL. Just what I have read in the coal-trade papers. I think coal reached that figure last year.

Senator POMERENE. Will you tell the committee how you justify this increase?

Mr. MODERWELL. I do not know that it is up to me to justify it. Senator POMERENE. You are a coal operator-I ask if it can be done.

Mr. MODERWELL. I explained before that coal operators are just as human as anybody else, and I am afraid that in instances they have taken advantage of the situation.

Senator POMERENE. Then, as a matter of fact, it has not been the supply of coal, and it has not been the demand for coal, that has caused this increased price, but the increased prices have been limited alone by the exactions of the operators.

Mr. MODERWELL. Senator, if the coal operators could control prices in that way they would have done it, I think, in normal times before these extraordinary conditions came upon us. I think we should have had a much higher price for coal if the coal operators could have controlled the situation.

Senator POMERENE. You understand, of course, that dealers can do many things in extraordinary times that they could not do in ordinary times.

Mr. MODERWELL. They do take advantage of conditions, naturally. Senator POMERENE. And they have taken advantage of it.

Mr. MODERWELL. They generally do.

Seantor POMERENE. But they have taken advantage of it?
Mr. MODERWELL. I have no doubt that they have.

Senator POMERENE. You say that coal has decreased recently?
Mr. MODERWELL. Yes, sir.

Senator POMERENE. Where?

Mr. MODERWELL. In the smokeless fields of West Virginia.
Senator POMERENE. Due to what?

Mr. MODERWELL. Due largely to increased production.

Senator POMERENE. You are speaking now of battleships coal. Mr. MODERWELL. I understand some of it is used for battleships. Senator POMERENE. And the Secretary of the Navy suggested arbitrarily a price, did he not?

Mr. MODERWELL. I believe he did.

Senator POMERENE. And that resulted in bringing the price down? Mr. MODERWELL. That did not bring the price down for the domestic consumer.

Senator POMERENE. It brought the price down for the Navy, at least.

Mr. MODERWELL. There are a great many places where he did not fix the price of coal, for some places where he did not fix the price of coal where the price came down.

Senator POMERENE. Do I understand from your answer that the price has not been reduced to the domestic consumer in those localities?

Mr. MODERWELL. It has not come down due to the efforts of the Secretary of the Navy, in my opinion.

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