The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-10-16


the prices, regulated and unregulated.
Various committees for example,
have been regulating the price of coal
for the past six months, and yet to
the ultimate consumer it still seems
bit unregulated. This coal conun
drum is a good example of how price
regulation works-and how it doesn't
work.
1t Is IA Good Coal Drama.
In this coal drama-for it is a
drama-are involved the two big
forces that are trying to get Ameri-
can industry organized, for the prose-
cution of the war. The first of these
tional Defense, which represents an
effort of American industry to regu-
late and reorganize itself with GER
tain amount of cooperation from the
government. The second is the execu-
tive branch of the government, acting
under the tremendous powers con-
fered upon it by congress as a war
measure, in an effort to reorganize
and control the production of the
necessities of life with a certain
amount of cooperation from industry.
These two forces had been coming
into collision at several points. 1t is
not to be concluded, however, that
one of them ought to be eliminated.
Friction develops heat and heat en-
ergy.. Also,-th Council of National
Defense has furnished the govern
ment with expert help and informa-
ton which it could not have obtained
elsewhere. Right now the fuel
administra ton of the government is
using nearly all of the Office force of
the committee on Coal Production of
the Council of National Defense,
which it has practically superseded.
Attempt to Regulate.
The attempt to regulate coal pro-
duction began with the appointment
by the Council of National Defense of
this committee on coal production.
The committee was composed of men
who own coal mines, headed by F. S.
Peabody 1t met with secretary of the
interior Lane who told the coal OPP
orators that prices must be regulated.
This was agreed to by all. In Penn
sylvania at that time the price of
coal was jumping up to nine dollars
ton. New England manufacturers
were panic stricken. In one hotel
there were over a hundred coal con-
sumers bidding against each other
for the product of a certain mine.
Confusion, competition and waste
We're the order of the day in the coal
business. The operators were max
ing big money, and so were some of
the retailers and middle men, but it
was all clear that the condition was
one that could not last And besides
government regulation was already
looming up portentousIy thru the
maze OF congressional debate.
Draw Up a Scale
So the operators agreed that it was
time to apply some regulation to the
industry AT the request of Secretary
Lane, they drew up a scale of prices
tine so-called three dollar PRICE
which they agreed to regard tenn
porarily as maximum, until the gov
eminent could make an Investigation
OF costs of production and name its
UTh ieh
abide.
Since the operators made this price
themselves, it was not to be expected
that 1t would be unfair to them. It
left them plenty of room to make
money But it also reduced prices
all over the country and stopped their
frenzied rise. They claimed that il
would save the soft coal consumers
east of the Mississippi fifteen million
dollars month.
Wasteful and Competitive Hauling.
In addition to fixing this price they
dld a far more valuable work in re- |
organizing the industry. They elimi- |
mated wasteful and competitive haul |
ing They formed a pool for ship |
ments via the Great Lakes by which |
the waiting of empty boats for loads |
was reduced. They formed commit |
zee to handle labor troubles Trans |
portation and labor are the two great |
factors in coal production; there is |
always plenty of coal. The committee
on coal production got the two vital |
factors well under control. and from |
the time it took charge in April the
production of coal began steadily to |
rise. This rise is shown graphically |
on a chart by the geological survey. |
which has no interest in the matter |
except that of scientific accuracy. 1t ]
is therefore an indisputable fact that |
the committee produced the coal /
They had made an estimate of the !
production which was neces- |
sary to keep America and the allies |
going thru the war. and they were |
steadily pushing the production up |
ward toward that figure.
Secretary of the Interior Lane, who |
is a good business man. and who per- |
ceived that the first essential was to /
insure a sufficient supply of coal, |
heartily congratulated the operators |
committee on what it had accom-
plished. Il
About this time Gin July to be ex-
act) another cabinet officer came for /
ward with a different point of view |
Secretary of War Baker in a widely !
published letter, expressed the opin-
ion that the three dollar price was |
tool high.
The Climax of the Drama
This letter is the climax of the coal |
drama. 1t resulted in an examina-
ton by the federal trade commission J
into the cost of mining coal with /
view to ffxing~the price. The federal |
trade commission completed its exam |
nation of the entire coal industry of /
in a few weeks, and issued |
a scale of prices just about one-third /
lower than that agreed on by the
operators. Soon thereafter the act of /
August 10 was in force and our pres
ent coal dictator" Mr. Garfield, was |
and handed this new scale |
of prices to enforce.
But Secretary Bakers letter marked |
not only the climax of the contest !
but also the climax of coal produc- |
ton. Whether because the two-dol- !
lar prices was really unfair, or |
whether because the coal operators
felt that their patriotic actions had |
not been appreciated the coal pro- |