Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-08-01
ILLINOIS COUNCIL OF DEFENSE
URGED TO TAKE DRASTIC
ACTION.
OPERATORS BLAMED
FOR PRICE BOOSTING
Inquiry by Special Committee Results
in Fixing Blame For Heavy Toll
: Levied Against Consumers - Fair
Prices May Be Fixed by Defense
couneii-competition curbed.

Chicago Aug 1.-The price now
being charged by the operators is in
defensible."
This verdict on the costs for coal
which the Illinois producers are levy
ing on the people of the state was
given yesterday by the special commit
tee of the state council of defense in
its report to the full board. it is based
on negotiations with the operators
last week, which terminated suddenly
when the latter thru their spokesman
delivered the ultimatum that they
would not be parties to any action to
cut down prices.
under the drastic powers possessed
by 1t under the law'Sto compel "a coal
price that is equally fair to the oper-
ators and the consumers" Is recon-
mended in the report. Whether this
action is to consist in asking the state
to take possession of the mines and
operate them or for the council 10 as
sumo supervision and regulation of the
coal industry in Illinois Is not dis
closed.
Favor Deferrins Action.
Some OF the members of the council
are in favor of deferring action OF any
kind until after congress acts on the
Pomerene amendment, which is now
pending, giving federal government
agencies full power to supervise or
take over and operate coal mines and
fix the wages of miners.
Copies OF yesterdays report were
sent to Gov. Lowden, as well as 20
District Attorney C!yne and States
Attorney Hoyne The district attorney
is investigating the aspects OF the
Franklin County Operators Associa-
ton. of which +. C. Honnold is secre-
tary, with possible view OF prosecut-
ing its officers and members for price
fixing activities.
The report denounced the so-calied
operators price agreement at wash
incton last month which had the
sanction of Secretary Lane, but was
denounced and assailed by Secretaries
Baker And Daniels.
Ia Points in Report.
The report holds, in part:
TT Is true that certain officials in
Washington last month agreed upon q
charge by the coal operators of ten
tatiye maximum Of s2.75 ton at the
mine pit for mine run and tentative
maximum of $3.50 ton for screened
lump and higher grades OF coal. We
emphasize the fact that this arrange
fnent permitted Of tentative maxi
h,,, ~ No.
orators the right. nor interfere with
their duty. to charge less IL the oper-
ators concluded 50. to do. Nor should
the fact be lost sight OF that the ar
rangemeDt referred to was almost inn
mediately repudiated by the secretary
of war and the secretary Of the navy.
There is no force in the contention
that because this repudiated arrange
ment permitted tentative maximum
price therefore a lower price should
not now be charged. Furthermore, the
evidence submitted to us disclosed the
fact that many Illinois operators are,
in fact, charging certain customers
prices which are considerably less than
these tentative prices. The position OF
the operators is untenable.
Curb Outside Competition.
The contention that to lower the
price in Illinois would invite discrim-
nation or competition with the coal
operators Of adjacent states IS not per-
tinent, because the council committee
informed the coal operators that 1t was
the plan Of the committee to arrive at
a basis with the Illinois operators and
with the operators in adjacent states.
Federal action has been and may be
SO long delayed as to be totally In
effective. II no other way remain% the
control Of prices in Illinois alone will
be urged and enforced IL possible.
The council committee wishes to ar
range price which will meet present
emergencies and necessities.
Make Big Profits.
t-The price of coal is excessively
high. II includes profit per ton much
in excess 5f fair and reasonable pro-
fit. The largest coal operator in I'LL.
nois, whose mines produce nearly -
per cent Of the entire output Of the
state, frankly and publicly stated that
the price now being charged by the
operators is indefensible. The evi-
dence !, produced by the opera tors
showed that in July, 1916, coal In great
lquantities was being offered by the OPP
orators In this state at $1.26 and $1.35
q ton 1t the mines Cor the highest
grade, and that for the same grade Of
coal the operators are now charging
from 50 to $3.50 ton, and prior to
July 1, 1917. charged still higher
| prices"