Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-18
| ALARMED P0O[RO0M M|USFG0|PR0BE COAL PRICES
Connection With High Cost of
Living May Be Determined.
RESOLUTION IN THE HOUSE
Representative Buchanan Believes
Railroads Are Responsible.
Cites Big Dividends.

An inv ,stigation. the object of which is
to determine II the advanced price OF
coal Is one Of the elements causing the
high cost of living. Is proposed by Repre-
sentative Frank Buchanan of Illinois In
resolution introduced in the House
yesterday. The resolution provides for
an investigation of the cost of produc
Ing coal. from the mine to the consumer.
tnat the people may know why the price
OF this necessity is so exorbitant. The
bureau of corporations Of the Depart
ment of Commerce and Labor is in
trusted with the duty OF making the
inquiry. which would also be for the
purpose of determining the interest Of
the coal-carrying roads in the anthra-
cite coal mines.
The resolution derives additional in
terest from the fact that the Supreme
Court of the United States is expected
the so-called anthfocite coal road cases,
Interpreting the commodities clause of
the interstate commerce act
There has been much discussion of
late, said Mr.. Buchanan yesterday,
commenting upon his resolution, "of
the high cost of living. and this sub
Ject Is one of great Importance to the
masses of the the people.
Good Place to Start Probe.
There is wide difference of opinion
as to the reasons for the increase in
the cost Of the necessities and comforts
or life. One of the necessary and es-
sential commodities of human comfort
is coal. and it appears to me that an
investigation Of the price Of coal would
be as good a place to begin an inquiry
as to what has caused the increase In
prices as any that could be found.
THE information that I have indicates
that the anthracite coal roads are secur-
ing more than a fair return for the serv-
ice they render the people, and what they
receive above an equitable return for
such service creates an unjust hardship
on the consumer of coal.
Information from what appears to be a
reliable source shows that the Delaware.
Lackawanna and Western railroad, since
1904 and up to and including 1908. has
declared an annual dividend of 70 per
cent. his road in 1909 declared a dividend
of 80 per cent in cash. besides a large
dividend in stocks. and within the past
few months has not only declared a cash
dividend Of 81 per cent. but stock divi-
dend Of $4,000 900 in addition.
This would indicate that the railroads
are charging an exorbitant price for
transporting our fuel, and it appears to
me that the people ought to have stats
tics compiled that will show what inter
ests are collecting an unjust tribute
through high prices on one OF the COM
modities that is an important factor in
our domestic economy.
Price Of Coal Advanced.
Another important factor in the mat
ter is the fact that the coal lands are
virtually all owned or controlled by the
railroads or mining companies, which
have common stockholders and a COM
mon dictatorship with the railroads.
While there have been improvements in
the methods of mining by the use of ma
chinery which has been installed and
which has increased the productive power
Of the workers in the coal industry, which
should cheaper the cost OF production.
yet we find that the price of coal has
advanced and this advance in price of
coal and other necessities Of life is con-
fusing the people, because of the state
ments that the advance is due to the in
in my opinion. will not bear out this
statement, as the information that have
convinces me that the labor cost of coal
and other necessities Of life is less than
In any per1od OF time, ana II IL very evil
dent that this abnormal cost of living is
due to watered stocks, fictitious capital
and unnecessary overhead charges by
the corporations that have to do with
production.
Therefore 1 have introduced a reso-
luton asking for an investigation of
the cost Of producing coal. from the
mine to the consumer, that the people
may know why we have the exorbitant
prices for this necessary article. 1t is
very evident to me that it is due to
monopoly, which means the power in
the hands Of few people to fix prices.
BY securing information through an
Investigation. prosecuted by efficient,
capable. and unbiased investigators we
should learn of all the elements that
enter into the cost of coal. and in that
way learn who is responsible for any
exorbitant price that the people are
now paying for this necessary article"