Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-05-15

/
ed States on anthracite prices.
| The accounts sent to Washington by
the press associations omitted a con-
siderable amount of matter that it Is
believed would be of interest to the
public. The following complete re-
! port is furnished by the Anthracite
| Bureau of Information, Wilkesbarre.
Pa:
/ TO the President of the Senate OF the
| United States,
| Sir:
BY direction of the United States
| Senate as expressed in Resolution No.
| 2l7, Gath Congress, fSenator Hitch
cock) the Federal Trade Commission
has been engaged in an investigation
| Of certain phases of the anthracite
coal industry
| While that investigation was going
forward. a buying panic" developed
in the autumn of 1916, and enormous
increases in retail prices resulted.
Continuing it's general investigation.
the Federal Trade Commission turned
I Immediate attention to this condition.
! The Commission, being about TO make
its report, finds that at this present
moment. tie symptoms of the former
InWarranted panic are recurring, ana
I that there is now imminent repeu-
| ton Of the conditions obtaining last
winter.
/ Those conditions were intoieraple-
| and the Commission now, therefore,
without waiting the transmission OF Its
complete report on past conditions. is
moved to call to the attention OF the
| Senate the danger threatening the
consumers Of anthracite coal and the
/ steps thus far taken based upon the
knowledge of the Commission ana
within the limitations of its power to
avert that situation.
During the past week. daily confer
ences have been held with anthracite
operators with the officials OF the
United Mine Workers of America. with
leading jobbers. and with retailers
from various parts Of the country
The Commission is able to say that
| there now exists no good reason Tor a
panic in TIE anthracite market. nor for
| any increase in the present Seinng
price to consumers. On the contrary
the retail prices generally obtaining
| today are unWarrantcd.
The wage increase agreed upon on
April 90. 1917. will involve an increased
| cost of production Of between "A and
! 20 cents ton. The price at which
! leading operator have announced that
they will sell, will not exceed this IN
| crease This price is upon anthracite
on cars at the mouth of the mine
There T., no justification for larger
increase to he passed on to the con-
sumer and these mine prices VIII NOT
Justify the present retail prices IN
many instances.
| The new wage scale with the United
Mine Workers is beneficial and
| steadying factor in the industry. The
| Commission has received assurances
both from responsible anthracite OPP
orators and from the miners repre-
sentatives that this will be year OF
unusually large production. The mine
prices for May reflect approximately
the wage increase OF last week. The
| Commission is assured that there is nc
reason why this price should not con-
Time for tie season and be subject to
! tho usual summer discounts, namelS
/ 40 cents per ton in May, 80 cents III
| June and % cents in July, and ~ cents
: IN August
| The Commission believes that the
! custom normally followed by the ma
/ ioritv Of retailers of passing the bene-
( fl OF these discounts on to the con-
! sumner. should be followed by the
whole trade.
If The public is again so deceived as
to indulge in a scramble for coal such
rs occurred last winter, the favorable
! situation above reported may be null
lifted. A demand Tor four months
coal in single month of May will be
most deplorable. If. on the other hand
purchases are made as usual. there
there will be no disturbance and small
chance for spectators to fleece the
public The best thing that can hap
pen now is for everyone to buy as has
been his custom in former years. Such
normal buying spreads evenly through
the summer, and will insure a steady
| flow of the production of the mines
! through tho channels Of distribution
to build w usual supplies in the hands
| Of consumers, and more especially &c
bnild 10 the normal stock piles OF
wholesalers and retailers at points fal
/ removed from the anthracite region
Many Of these points must build ur
their winter supply during the sum
mer when water transportation Is
available Transportation will there
by be relieved of undue burdens and
the coal will be steadily distributed
during the summer against the needs
of the winter.
During the coal panic Of the winter
| Of 1916-1911, one of the greatest factors
/ in the distressing and intolerable con-
dition. was the unwarranted and indie.
! feasible practice of using coal cars for
warehouses. Coal was held in cars by
/ speculatCrs while shortage of cars was
alleged as n cause of fuel shortage
. The Commission calls your attention
also to other activities Of spectators
in anthracite coal who perform no use
full service in the distribution Of the
coal, but who insert themselves as a
disturbing and clogging factor upon
1.-THE industry and whose unearned
profits are often much greater than
those enjoyed by either miner or oper-
ator or honest dealer. Those profits, in
many instances more than 100 per
! cent. were paid by the consumer TO-
gether with enormous bills for car de-
/ murrage.
! Within the scope of its powers, this
Commission will continue to exert
every influence to avert the threatened
recurrence OF the conditions obtaining
| in the winter of 1916-1917. To this
| end the Commits sion nrOpoSeS fo CO.