Evening journal., 1916-05-10
Operators Will
BOOST COAL Prices
Local Dealers Have Received
No Notice Of Proposed
Increase at Mines
U. S. COMMISSION MAY
MAKE INVESTIGATION

WASHINGTON. May 1O.-The Fed
eral Trade Commission has an
nounced that If any further raise is
made i'm the price Of anthracite coal.
the commission will then take up
with the Department of Justice the
question of an investigation Of the
anthracite industry. The department
had suggested the inquiry, If prices
we're raised following the wage ad-
vance just given TO anthracite work
ers.
Attorney-General Gregory. in a let
ter to the commission, suggests that
Il investigate. If any undue increase
in the price OF anthracite coal is
made, to determine its cause as we'll
as to ascertain whether the increase
is out of proportion to the S12,000.-
600 wage advance.
The attorney general in his letter
says:
1T has been brought out in the va
rious legal proceedings against the
anthracite railroads that on similar
! occasions in the past when wages
were advanced the railroad coal com
]
prices for the purpose of meeting the
increased cost of production resulting
from higher wages. have made much
! greater increases than were necessary
4 for that purpose"
Anthracite producers have put sur
tax Of s12,OOOOOO annually on con-
sumers since the 1912 wage increase,
the Attorney. General wrote. through a
price increase OF 16 cents a ton over
cost increase. The letter called atten-
ton to three wage increases In 16
years and resulting price increases. A
wage increase of 10 per cent. in Oc-
tober. 1900. the Attorney General said
increased cost OF production 70 the
Philadelphia and Reading Coal and
Iron Company 1916 cents a ton, but its
coal prices we're raised soon after TO
232 cents a ton.
A general wage advance Of IA per
cent. In November, 1902, which in
creased cost Of production, according
10 the Attorney-General. only 1873
cents a ton. was followed by 4 rise IN
prices of 49.4 cents a ton. Prices I'M
, mediately following this wage increase
were influenced by a scarcity Of coal
due to a long strike. said the Attor-
! ney-General. but prices two years later
still were 24.5 cents higher than the
. the cost increase that came with the
! wage advance.
/ Gregory Advises Probe.
= In 1912, a wage increase Of cents
| ton was followed by rise OF 25 cents
, ton in prices In response to
[ House resolution the Department o
r. Labor investigated this increase an'
= reported that "the prices realized b!
J the coal-mining companies we're IN
, + creased about 16 cents ton more thai
was required by the new scale o
. wage alone"
I'm view of these facts" the lette
concludes. 81 take the liberty Of su2
pcsting that it the advance in wage
lust agreed upon shall be followed, a
in the past. by an increase in the pr'C
Of coal TO consumers. the Federal Trad
, Commission. under the authority
! Section of the act creating It. institui
a searching investigation into the 81
erations and accounts of the great pre-
l. duciug companies for the purpose OF al
3 ccrtaining all the facts upon which sue
g increase I'm price may be based, inclu'
Z ing the relation between any increai
d in tho cost Of production due TO advan'
+ of wages and the increase OF prom
caused by the increase IN price,