Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-08-19
DRASTIC ACTION
TO REDUCE PRICES
OF COAL PLANNED
President Expected to Take
Definite Steps Early
This Week.
ADMITS DEEP CONCERN
OVER PRESENT SITUATION
Visits Trade Commission and
Goes Over Recently Completed
Report on Industry.
ALSO CoNFERs WITH HOOVER
Operators Confess That Parts Of
Country Are Facing Short
age This Winter.
ADMITS DEEP CONCERN
OVER PRESENT SITUATION
ALSO CoNFERs WITH HOOVER
tBy Associated Press.l

IBy Associated PreBS-l
WASHINGTON, August ls.-Indica-
tions that the government is preparing
to take control OF the coal industry
strengthened to-day when President
Wilson paid a visit to the Federal
Trade Commission and went over with
it's members estimates OF coal produc-
ton costs and recommendations for
dealing with the situation completed
by the commission last night. after
months OF investigation.
Definite action to reduce prices to the
consumer and to bring about a better
distribution. il was learned. will be
taken early next week.
Before going to the Trade Commits
sion. the President called on Herbert
Hover. named to administer the food
act. in which are provisions for con-
troll OF coal. and later went to see Al
torney- General Gregory. He also called
at the Offices Of Judge Lovett, OF the
War Industries Board. who. it Is un-
derstood. will be given powers vested
in the executive in a recent law gov
crning priority Of railroad shipments.
GOES OVER IT'S REPORT
WITH TRADE COMMISSION
The Trade Commissions report WAS
TO have gone to the White House this
afternoon. but when the President
learned 1t had been completed. he sug-
gestkd a conference, When he left
tho commissions Offices he carried the
report with him.
Tho President is deeply concerned
over the coal situation. Even repre-
sentatives OF the operators admit that
parts of the country face shortage this
winter. and from the public complaints
are pouring in that prices are out OF
all reason. The fact that several Gov
errors are threatening to take over
the industry in their States is prompt
isG early Federal action.
Three courses are open to the Pres
dent. Under the food bill he may fix
prices at the mines and to consumers,
or he may direct some government
agency to requisition the output OF all
mines. selling it to the public. The
third course would contemplate VOL
untary agreement by operators to sell
at fair price. with the government
directing distribution.
MAY REaUIsITIoS
ALL COAL MINED
Officials who have followed the sit
uation closely believe the President
will direct the rcquisitioning OF all coal
mined This, il is understood is the
recommendation of the Trade COMMITS
sion, which has worked out plan
OF procedure. Under this plan the gov
eminent would control shipment. dis
tribution and apportionment.
The Trade Commission, it is under
stood. has worked out completes plan
for price fixing in the event the Pres
ident does not believe the situation re-
quires Communicating. This program
provides for government operation of
mines refusing TO sell their output at
the prices fixed.
For some time the country's anthra-
cite mines have been operating on a
price system suggested by the Trade
Commission, but enforced by voluntary
agreement. The system never has been
extended to cover jobbing and retail
ing. and the commission has attempted
to reach these trades through publicity.
The requisition plans. if adopted.
would call for division of the coun-
try into districts Every operator
would be paid for his product on a
mite percentage of profit. All the coal
in district would be pooled and sold
to the public at one price. although
the prices fixed for different districts
might vary considerably. Allowance
would be given operators for quantity
production and efficiency OF service.
PRIORITY OF SHIPMENT
ONE OF DIG PROBLEMS
Priority of shipment is recognized as
one of the biggest problems confront
ing the government in any solution Of
the coal situation.
Powers vested in the President by
the priority act probably will be
turned over to Judge Lovett next week.
At the Federal Trade Commission
the President went over the figures
gathered on costs of producing coal.
The trend OF the commissions report
on the subject was to urge the Pres;-
dent to take over the supply and it's
distribution.
Evidence was given the President
that operators have failed to abide by,
the $3-a-ton agreement and that they
have been selling their product for
any amount they could get. Shortages
In some sections have made 1t pos
sible. 1t is said. for them to obtain
extortionate prices.
The Trade Commissions report in
dicates that operators can sell their
bituminous at price far below the
I maximum of SO, fixed at a recent con-
ference Between mine managers and
government ,offieials, and still make q
ha.,doofno profit. ii& sy ~ 80 s