"Sheer Economic Insanity"

Nothing makes the sick U.S. coal industry sicker than the prospect of a new wage demand by John L. Lewis' United Mine Workers. Last week, with the time for reopening of negotiations only a few days away, Joseph E. Moody, president of the Southern Coal Producers Association, gave Lewis an angry warning.

"Another proposal for a wage increase," said Moody, "may be accepted by dominant members of the industry despite the fact that it is sheer economic insanity. Such an increase can result in nothing but disaster and chaos. It will wreck our southern industry, put most of our workers on relief, and put an end to prosperity in sections dependent on coal.

"In the area within our association . . . 103 mines, employing more than 14,000 miners, closed down completely during 1952 and the first five months of 1953. The greater part of these mines may never reopen . . . We need relief; we must get it if we are to have any future."

Instead of asking for a wage increase, said Moody, the Mine Workers should give southern operators lower rates than northern operators. Otherwise, warned Moody, the operators have the choice of either going nonunion or going broke.

Moody also took a swipe at the "northern coal operators . . . who actually are spokesmen for and representatives of another industry . . . The primary concern of the coal mines which are owned by the steel industry is not the price of coal. [It] is the welfare of the steel industry."

Moody's speech brought a sharp retort from Harry M. Moses, spokesman for the northern operators, who snapped that wage cuts are "a very unsatisfactory and unsuccessful method of meeting the problem."

From John L. Lewis' headquarters came only an Olympian snort: "The mountain labored and brought forth a Moody." But even Lewis could not laugh off the sad facts of how high-priced coal is being squeezed out of the market by oil and gas. Coal production has dropped from 630.6 million tons in 1947 to an estimated 440 million tons this year. The industry's 440,000 miners averaged only 3.3 days' work last week, but in the southern mines some worked less than two days.

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