Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-25
Cheaper Coal Hardly
Expected Before Spring
Continued from PAGE Ono

obviously cannot produce at this price while
the mass OF the coal in the district Yields
a fair profit Yet the Government wishes
to keep production up.
TWO THEORIES
There are two theories as to how these
mines will be kept in the game. One Is
that they should be taken over by the
| Government and operated, the Government
! to stand the loss. The second theory is
| that they should he made exceptions and
price set for them at which they could
| nav profits The administrator is con-
fronted with the task OF keeping them
working.
Difficulty number three has to do with
| the dealer who has already bought his
| coal on contract.
| Virtually every large coal dealer in Phla.
| delphia long ago contracted for his coal
for the coming winter. Many dealers have
! large quantities Of It already in their yards
| They have paid something like s3.s5 for
| the same coal that the Government now
| saws must be sold for 81. They have got
| to sell that coal as though they had bought
II for 50 ton. Their neXt-door neighbor
who s not buying old contract gets
his coal at s. ton and they must meet
his competition. The Government will not
let them sell coal AT a figure that would
make a nront ON S3Sb. If the law and
the regulations are administered in ac-
cordance with what appears on the surface
every one Of these local dealers would lose
money on every ton he sells. The coal
administrator has got to work out some
plan that will not do this dealer an in
justice.
Difficulty number four also has to do
with coal contracts that already exist.
The railroads are most favored of all
coal consumers. While other buyers were
paying SO for bituminous coal 1t was
no uncommon thing for railroad TO be
purchaeing the same fuel from the same
mine az $3.50 It may ne true that It
costs s. ton to mine this coal and that
the mine loses money on II.
WHY RAILROADS ARE FAVORED
There are two explanations Of this sit.
uation. One is that a railroad contract
is attractive because II is large and runs
steadily throughout the year. II will give
the miner n bulk of production that will
make his other business more profitable
The second explanation is that coal mines
are dependent on railroads to move their
product. The mine that accommodates the
railroad Is much more likely to get cars
than is the mine which does not. Hence
the favorable contracts to the railroads
II is argued that If coal mines were
to abrogate these contracts on which they
lose money they might tend to offset the
cuts in prices that are being forced upon
them by the Government. Mr. Garfield will
have chance to take out this slack in mine
operation.
Difficulty number five may be said to
have to do with labor.
in the United States today there are |
probably not less than a hundred situations |
in which the miner and the operator are |
near the breaking point. The two face
each other with fixed bayonets Each goes |
over the top or tunnels under in his at |
tempts to weaken the position of the other. |
This cut in the selling price OF coal will |
cause the employer to attempt a cut In |
wages Certainly he cannot as well afford |
to pay high wages as when he was making |
four times the profit on every ton the miner |
TOOK out. The miner will answer that the |
Government based its Judgment In fixing the
price on the producers ability to take out
the coal with the wages then prevailing
Inc coal committee of the Council of
National Defense has assumed the task of
pouring oil on the troubled waters of labor
as applied to coal mining. That committee
has as It's head, for instance f. S. Peabody |
oil chicago, man who owns score of |
mines. Half of his mines, being in the
unionzed State of Illinois, employ union
labor The other half are in Kentucky
where an operator may pick and choose.
and Mr. Peabody works nonunion men |
there to show his broad mindedness, He
has got all the money he wants and so
works hard for the Government for dol
HOW PEABODY WORKS
Mr. Peabody is a diplomat and more
genial than Bunny himself He picked
two assistants for intimate advice and CO. |
in keeping the coal mines Of the
nation yielding up their dormant horse
power. Both were young men, aggressive |
incisve, thorough masters of the coal busi-
ness. Edward Chase was the representa-
tive Of one Of the biggest coal producers in
the nation.
The organization which Mr. Chase rem
resented had never employed a union man
in all its life The second selection of Mr.
Peabody was William Diamond, enthusiastic
representative of the United Mine Work.
crs, who had been fighting nonunionism in
Kentucky. Here was an open-shop man. a
union man and an employer who worked |
with both. The group has been handling
about fifty kilograms a day bearing on
labor troubles in the mines and has talked
reason and canning the Kaiser to all of |
them and adjusted the difficulties This
organization is at the disposal of the new
roal administrator and will help him with |
the difficulties of the labor situation.
OF these difficulties two are obyiousIv
embarrassing-getting the mines to pro-
duce So coal when they have contracts for |
81 coal, and forcing the man who is loaded
up on 81 coal to sell it at So.
The mines today mostly have the mass
Of their product contracted for Certainly
these contracts will be filled before coal Is |
sold at the lower price. Mining men are
saying already with somthing of a chuckIe
There amt gonna be no core"
The mass of the coal is used In tho in
lustres which buy in advance and have
already provided for, the present year. They
will pay contract prices unless something
drastic is done about 1t. If their rivals are
able TO buy at the new prices thew will
get material advantage in production he.
cause of the Government action which made
Il possible There are those who think n
will be necessary for the President To ask
Congress for the authority to abrogate con.
tracts and place everybody on an equality
with SO coal for the present season.
WOULD SOLVE DIFFICULTY
This would solve also the difficulty which
races that dealer who has contracted for
ms winters coal at old prices and who
VIII be forced by the Government to sell
as though he had bought for 81. II would
place the consumer in the position where
ne would be able to get the benefit of 80
,oai right away. If bing! the first of SEN
lemner' everybody got his coal for 50 the
regulation would be real With the mass
ot II being handled under contract for thc
present season. the public may not benatt