represented in your appearance here. Did you give some percentage, ninety-some-odd percent? Mr. DEBARDELEBEN. Ninety seven percent of the production of Alabama. Mr. COOPER. Ninety seven percent of the coal production of Alabama is represented in your statement here? Mr. DEBARDELEBEN. Yes, sir. My statement represents captive coal as well as noncaptive coal. Mr. COOPER. What is the percentage of the Alabama mines for which you speak? Mr. DEBARDELEBEN. In 1933, 8,914,000 tons. These figures are the Bureau's figures. The 1934 figures have not yet been published, but our State mining inspector's figures are 9,596,000 tons. The increase shown is the increase in captive production. There was a loss of 2%1⁄2 percent in volume in our commercial production. Mr. VINSON. What was the difference, if any, between the price that you received for the coal in 1934 and that in 1933? Mr. DEBARDELEBEN. I do not think I have those figures here, but I can get them for you. Mr. VINSON. Will you put them in the record, please? Mr. DEBARDELEBEN. Yes. Mr. Chairman, may I have just one word? Mr. HILL. Yes. Mr. DEBARDELEBEN. We have offered in written form to renew our contract with the United Mine Workers of America or to extend its application until April 1, 1936. I would like to file that with you. Mr. PILL. You have that permission. Mr. VINSON. You refer to the captive coal being included in that tonnage. Mr. DEBARDELEBEN. Yes, sir. Mr. VINSON. What was the tonnage of the captive coal? Mr. DEBARDELEBEN. Two million seven hundred and eighty-three thousand three hundred and sixteen tons in 1934, and in 1933, 2,219,950 tons. Mr. VINSON. You had half a million tons of captive coal added in 1934 over 1933? Mr DEBARDELEBEN. True. In addition to that, Mr. Vinson, there was an increase in bootleg "gopher hole", truck mine operation of 300,000 tons. Those figures are in the total production. Mr. HILL. We thank you very much, Mr. DeBardeleben. (The statement and letter referred to by Mr. DeBardeleben are as follows:) Mr. WILLIAM MITCH, ALABAMA MINING INSTITUTE, President District 20, United Mine Workers of America, Birmingham, Ala. DEAR SIR: Most, if not all, of the judicial and political uncertainties that prevailed in Washington and which necessitated the recessing of our joint wage conference having been removed, and realizing the dire results of a suspension of coal mining because of the expiration of the contract between the Alabama coal operators and district 20, United Mine Workers of America, on June 16, the advisory committee are desirous of reopening the wage conference and doing all in their power in the interest of the public to avoid a suspension of work on June 16. You are familiar with the fact that the majority of the commercial coal operators in the Birmingham district lost money under the present wage scale during the year 1934, as set out in the brief filed with National Recovery Administration, but after having given full consideration to all the factors surrounding present conditions and with the sincere desire to maintain wages and working hours which we consider so important to our economic structure, we have determined that it would be to the best interests of the general public, as well as to the coal industry, to recommend to the Alabama coal operators that they go along on the present basis in the hope that the expected upturn in business will at least enable them to break even on their operations. We wish to impress upon you the fact with which you are already familiar that because of the uncontrolled competition of natural gas and fuel oil as well as hydroelectric power our markets are constantly shrinking due to our inability to meet prices at which these competitive fuels, as well as power, are sold. In many cases the prices on these competitive fuels are only equal to about the freight rate on coal. Hence, the present wage scale and working hours are the very maximum that can be paid without disaster to the coal industry in Alabama, with its resultant effect on other businesses. Any increase in wages or shortening of workday would automatically increase the price of coal. On the other hand, the fields to the north of us are, as you are aware, constantly encroaching on our normal markets and the truck mines, many of whom do not pretend to maintain wages or working hours, are enlarging the scope of their operations, hauling coal in many cases up to 100 miles. Hence, if during the life of this contract a reduction in wages or lengthening of workday is agreed to in the fields to the north of us, then we must be given the advantage of the same in order that we may maintain a competitive position. While we have had no notice from you of suspension of work on the 16th instant, we have before us a statement issued on June 1 by Mr. John L. Lewis, president United Mine Workers of America, in which he sets out that in the absence of orders to the contrary all mining of coal will cease at midnight June 16 due to the fact that the Appalachian conference was adjourned on May 28 without having reached a wage agreement. The Alabama district has at no time been connected with the Appalachian region or wage scale and the Alabama coal operators are desirous of maintia ning the present friendly relations that exist with their employees and doing their part toward keeping the mines in operation and which is so vital to the welfare of the district and State. We feel that in view of the seriousness of present conditions throughout the country due to the collapse of the code and which would only be intensified by discord the advisory committee proposes to promptly recommend to the operators the extension of the present contract to April 1, 1936, and hereby request your concurrence and prompt acceptance, thus removing the cause for suspension of operations on June 16. Trusting that we may have your prompt acceptance, we beg to remain, OPERATORS' ADVISORY COmmittee. By R. T. DANIEL, Chairman. Birmingham, Ala., June 11, 1935. DISTRICT No. 20, UNITED MINE WORKERS OF AMERICA, Mr. R. T. DANIEL, Chairman Operators' Advisory Committee, Birmingham, Ala. DEAR SIR: We have given your letter of June 10 consideration and to refresh your memory will say that we recessed our conference on May 6, 1935, because both sides expressed their opinion that we could not make an agreement here until something basic was worked out or until some more definite action was taken in Washington. Since that time the Supreme Court declared portions of the N. R. A. unconstitutional and the Appalachian joint conference adjourned, being unable to negotiate an agreement. Their position was identical with that of the miners and operators in Alabama on May 6. Through the President of the United States there has been offered a new N. R. A. bill, which we understand provides for voluntary codes and a fact finding body. This is now before Congress. Press reports show that the President has requested the passage of the Guffey coal stabilization bill, which the United Mine Workers of America, also a large percent of the coal producers of the country, favors. Your proposition is for renewal of the present nine agreement with stipulation that any reduction in wages made in other sections would be reflected here but no provision is made in your docur ent for any increases that night be given or changes in the working hours and you are aware of the fact that the Black 6-hour day, 30-hour week bill is before Congress. There was no alternative for the miners in the Appalachian region but to adjourn, the operators taking a definite position that they could not and would not make a contract at that time, and Alabama, producing about 2 percent of the coal tonnage of the country, is not in a position to make a basic wage scale and, further, our scale could not be considered as basic in any respect because the wage scale here is much below that in any other section of the country. You readily understand that we are not in a position to negotiate a contract here until there is something basic worked out. You are aware of the circular sent out by international representatives of the United Mine Workers of America. We are hopeful, however, that action by Congress this week may prevent an extended stoppage of work, and we want to assure you that we appreciate the splendid joint relationship that has existed generally in Alabama, and we hope to see it continued. The policy committee of the United Mine Workers endorsed the circular letter sent out by the officials of the United Mine Workers of America. They also endorsed the agreement made between the operators and miners in the Appalachian conference wherein they agreed that in the event no wage agreement has been negotiated before the date of the expiration of the existing agreement, that the joint conference authorize the continuance of work of all necessary maintenance men, provided such men shall be paid the present wage for their services in their respective classifications plus any increase or adjustment that may come in the working out of the base agreement, which shall be retroactive as affecting these men as of June 17, 1935. We request that your committee give this due consideration as affecting Alabama and inform us as to your position. Otherwise, we will deal with each company that desires to use maintenance men. The status here at this time is such that should not lead to ultimatums on either side because we feel that something will be worked out on this problem in the near future which will give us an opportunity to negotiate a wage agreement for Alabama. Very truly yours, WM. MITCH, President District 20 United Mine Workers of Ameri STATEMENT OF HENRY T. DEBARDELEREN, PRESIDENT OF DEBARDELEBEN COAL CORPORATION, ON BEHALF OF THE MEMBERS OF THE ALABAMA MINING INSTITUTE, BIRMINGHAM, ALA. MR. CHAIRMAN AND GENTLEMEN OF THE COMMITTEE: My name is Henry T. De Bardeleben, Birmingham, Ala. I am president of the DeBardeleben Coal Corporation, third largest commercial coal producer in Alabama, which owns and operates several mines producing commercial coal in that State. I am appearing on behalf of the members of the Alabama Mining Institute in opposition to the bill now under consideration. The Alabama Mining Institute is a voluntary association of the operating companies producing 97 percent of the commercial coal and practically all of the by-product coke, pig iron, and steel produced in Alabama. We are convinced that, should the bill become a law, the coal industry of Alabama and the coke, iron, and steel industries of that State and, progressively, all industries of the South, together with their employees, would be adversely affected to a greater extent than any other coal producing district east of the Mississippi River. We are also convinced that the result would be an almost complete annihilation of the Alabama coal industry and serious impairment of Alabama commerce and the by-product coking, pig iron and steel-making industries of the State, causing increased unemployment, all of which would aggravate the already crippled condition of industrial activity in Birmingham and Alabama districts. Our section continues in a very serious condition industrially, and if the coal mines and related industries are further crippled, as this bill will unquestionably do, the consequences will be disastrous. The bill proposes a control of the industry in such a way and to such an extent as would render the industry incapable of competing in any fair measure with laborless fuels, such as natural gas and oil, or with other sources of heat and energy 144204-35--34 such as hydroelectricity. It would thus hamper and discriminate against one of the greatest labor employing industries of the Nation, while leaving untrammeled its laborless competitors whose principal cost is capital expense and not labor expense. Nor does the bill regulate the price of coke, another strong competitor of the commercial coal producer left untrammeled. This bill proposes to attempt the regulation of the truck or wagon mines, or those selling or distributing coal in intrastate commerce, approximately 500 of which are now operating in Alabama and producing more than 500,000 tons of coal per annum. They are a serious menace to the stabilization of the industry and will cause a greater demoralization than ever if this bill is approved by Congress. These truck mines, many of which are the "bootleggers" of the industry, usually lease small tracts of coal land, have no property ownership except their temporary tipple and their truck equipment. In many instances only members of a family are engaged in the operation of a mine. They keep no books, either as to costs, sales, hours, or wages. They can contribute nothing to the cost determination of "all production" as required in the bill and from the practical standpoint of administration they will not be regulated either by Federal authorities or by coercion of the union. In the enjoyment of the obvious immunity from regulation which will be theirs they will be able to take over an even much larger tonnage from the established and regulated producers which are compelled to market a part of their products in interstate commerce or cease operations and are subject to the provisions of the act. The effects of this expansion of "gopher hole" mines are not difficult to visualize. We greatly fear that the five supposedly impartial members of the National Bituminous Coal Commission may not in fact be impartial, or may not remain so, possessed with the vast powers conferred upon them by the bill. It is not unreasonable to fear that the privileges of establishing an organization of such size and character as the Commission may desire, will be abused to the extent of its becoming a means of paying political debts at the cost of the industry and at the expense of the consumers of coal. Most likely it will saddle upon the taxpayers of the Nation the burden of maintaining a horde of additional and unnecessary Federal employees with no consequent benefit accruing therefrom. In other words, set up an enormous additional "pork barrel" from which the politicians will profit and the people generally will suffer, particularly the consumers of coal. If it were to remain pure and undefiled, can such a Commission, appointed under a law without any expressed limitation as to experience, technical training, or other qualifications, impartially and with due justice to those vitally concerned, apply national rules and regulations of their own selection to fit conditions as they exist in Alabama in relation to competitive coal-producing States. Can a wage scale fixed for miners in States where seams are thick and clean, lying under conditions which make mining easy, apply to States where conditions are more difficult? Can the rates applicable to what are known as "company employees", or men working by the day, in mines where the numbers of such employees are limited, be determined on the same basis for mines where the numbers per ton of coal of such employees are probably two or three times greater? The bill provides that the findings of fact by the Commission shall be conclusive and binding upon the courts. We do not believe that the public mind is ready at this time-certainly we are not-to delegate broad judicial powers to a commission or to accept the decision of such a commission as binding on the courts to the extent-as the bill permits of preventing the courts from correcting a manifest injustice in matters which affect the very business life of large enterprises-a confiscation of property without due process of law. The very high punitive tax levied upon operators will, of course, force them, as is the purpose of such a tax, to accept the provisions of the code, rigid and inflexible by force of law, however unreasonable they may be. The Commission is given the power to conduct a hearing not in conformity with the safeguards provided in the ordinary procedure of law and to issue an order suspending the operator from a membership in the code and thus exclude him from the privilege of a drawback of the tax imposed, and also subject the operator to other heavy penalties, fines, and damages, as well as loss of business, not only with the agencies of the Government and those contracting with it or them, but with all other customers for his products. This will result in his being unable to continue the operation of his business. The provision for the involuntary imposition of an arbitrary code by statute upon the industry is premature. There have been great and fundamental lessions learned through the operation of codes under the National Industrial Recovery Act; but the situation in the bituminous-coal industry has not, in our judgment, sufficiently crystallized to justify the writing of an inflexible code in the stern language of a statute. The stabilization of the industry has undoubtedly progressed to some extent but it is still in the formative state and not yet come into sufficiently definite shape to be crystallized or frozen into a permanent statute. Even if that were not so, there is no justification for a proposal to impose such a code and such regulations upon the bituminous-coal industry while its competitors and related industries, natural gas, oil, wood, hydroelectricity (including Tennessee Valley Authority), and ". 'wagon mines", engaged only in intrastate business, remain free from such restrictions. The competition between coal, fuel oil, hydroelectricity, and natural gas in this area is in a formative and experimental stage. The plans of the Tennessee Valley Authority promise, if fulfilled, further demoralization. So far as fuel oil and natural gas are concerned, it is in the public interest that these competitive fuels be accorded a fair market, but with mutual fair practices and treatment by the Government. By these means the laws of economics will gradually establish a level and permit the respective industries to adjust their problems accordingly. It is essentially unfair to force coal into an arbitrary noncompetitive status, and, in fact, to stagger it to its base by impossible regulations while this period of test and competitive experiment is under way. But, I desire to speak not so much upon the general operation of the bill as upon the effect it would have upon the industry in Alabama. The Alabama coal field, as of course you know, is far removed from the large consuming areas and at the same time it is a fact, which I wish again to emphasize, that the Alabama coal mines meet most serious competition from hydroelectricity, fuel, oil, and natural gas. As a result of that geographical position our mines are less competitive to the large producing and consuming area east of the Mississippi River; 86.3 percent of our production is consumed within the State, and our entire production is only 2.63 percent of the total for the Nation. Prior to the fall of 1930, and before the effects of the economic depression became acute, fuel oil and hydroelectricity had taken many millions of tons of business annually from the coal mines of Alabama. Following this came the invasion of natural gas into the normal and natural market of Alabama-mined coal. In 1927 no natural gas was used in Alabama's consuming area except in territory adjacent to the producing wells in Louisiana and Texas. During 1928, 1929, and 1930, main pipe lines were laid to New Orleans, Memphis, Birmingham, Atlanta, Mobile, and Macon, and branch lines laid to serve the larger consuming points at distances up to 200 miles from the mains. With no price regulation, the consumption of natural gas, converted into equivalent tons of coal, was, during 1933 in Tons 294, 510 174, 510 227, 126 19, 373 Florida Total for the five States.‒‒‒ 12, 938, 638 3, 654, 157 It is a fair statement to make that 2,500,000 tons of this business was taken from coal. There is no hope of regaining it. We have held such market as we have only by being able to meet specific competition. When departments of the United States Government, such as the Atlanta Federal Prison, with a 50cent land-grant freight advantage, and convict lavor for handling and firing coal, have turned to gas within the past year, what hope has coal to regain the business of the industrial consumer at an increased price? Four governmental facilities in Alabama's consuming territory, all with land-grant freight advantages, have recently displaced 50,000 tons of coal with natural gas. This committee may inform itself from department heads in the city of Washington as to the displacement of coal by natural gas at the Atlanta Federal Prison (Department of Justice), Fort Benning, Ga. (Army), Tuskegee Veterans' Hospital (Veterans' Administration), and the Pensacola Naval Air Station (Navy). A greater tonnage than this would have been lost had not reductions in prices of coal been made in the attempt to check additional loss. This serious competitive condition continues to exist. Fuel oil and hydroelectricity have shifted an estimated annual tonnage of 7,000,000 tons. 1 Carbon black not included in this figure. |