The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1917-12-31
Editorial Comment
on Current Subjects
From the Manufacturers Record

From the Manufacturers Record.
The price of coal is higher now
than at any time in many years. High
as is the price paid by the consum
er, 1t offers not the slightest encour.
agement to the Increased production
OF coal for the simple reason that the
United States Government has de
creed that the producers shall receive
only a small, fixed part of the ulti
mate price. Considerable profit is be.
ing made out of TIT sale of coal, but
this profit is going to those who have
no influence over production.
Before DR.. Garfield, president OF
Williams College, was invited to leave
his quiet classrooms and take charge
of the coal problem of the United
States, all the demands for coal made
by the United States Government, the
Allies and the domestic consumers
were being met by a group of expert.
enced coal men, constituting the Com.
mittee on Coal Production Of the
Council Of National Defense. At the
head Of this committee was Francis
s. Peabody, owner Of coal mines in
Illinois and engaged in selling coal.
Mr.. Peabody and the experienced men
who were serving with him know the
coal situation. They knew what 1t
cost to produce coal of various types
as a result Of their own actual exper.
fence. They knew where the coal was
to be found.
Mr.. Peabody called large meeting
OF coal men to ask them to call halt
on rising prices. It was realized that
II the law Of supply and demand were
permitted to work unfetered, the In.
creased prices would encourage pro-
duction; that more coal produced
would probably reduce the level of
prices. But It was also realized that
there should be some check upon pri-
ces. Secretary Lane of the Interior
Department and Commissioner Fort
OF the Federal Trade Commission at.
| tended the meeting OF coal men. There
was a unanimous agreement to limit
the price Of coal to SO at the mines.
with half dollar off for coal sold to
the Government, Mr.. Lane said it
was the best evidence of patriotism
that could be given by business men.
The coal men felt that the price
agreed upon, while moderate, still
would encourage production. It took
account of rising labor costs and ris-
Ing cost Of materials. II the price
was liberal enough to encourage in
creased productivity, and the output
increased. the supply more nearly
would equal the demand. Two firms
then would not be bidding against
each other for the same ton or coal.
Secretary Baker Of the War Depart.
ment two days after the conference,
denounced the meeting. He said the
Committee on Coal Production of the
Council Of National Defense had no
right to approve Of the agreement en-
tered into by the operators. Moreov-
er. there was suggestion that the
price fixed was on the same basis as
the price for the fixing which! a num-
Der OF coal operators had been indict-
ed and for which they were on trial
In New York. The agreement was
kicked into the discard. 5s 4,
Then DR.. Garfield, president of
Williams College, was made Fuel Ad-
ministrator. II he had ever given
any special study to coal in his lit
tie Office at Williams College, the fact
is not generally known. One Of ths
things about coal which he didn't
know was that the navy used a speci.
ally picked, high.grade coal, which
cannot be produced at-the same price
as the coal used by manufacturing
concerns. He fixed arbitrary prices
for cal, making few distinctions be.
tween yarious grades. He says there
\ was no falling of in production fol.
lowing his advent. There is consider
able dispute as to that 1t Is fact,
however, that. the shortage grew &C.
ute following his. entrance into the
situation.
It is a simple. economic fact that a
liberal price at the mines will encouf.
age production. The more coal mined
under such conditions the larger the
profits OF the mine owners. = Half a
dollar added to the price at the mines
might mean an increase Of fifty mil.
lion tons, the amount which. DR.. Gar.
field says we are short. II that short.
age could, be met in that way, it
would mean that the supply would
equal the demand. Competition In
bidding, as we'll as boarding, naturally
& i1i ls.s.