New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-13
Hoover Will Take
Complete Control
OfNation's Wheat
Prices Of Winter
Coal To Be Fixed
By the President
Wilson Plans Early Step Under
Food Law to Protect
Consumers

WASHINGTON, Aug. 12.-That the
first definite price-fxing move to be
undertaken by the government will re-
late to coal is now practically certain,
and action that will reveal the policy
to be pursued is expected this week.
Under the food law the President,
through the Federal Trade Commission,
has the following powers:
To fix the price Of coal wherever
sold and to establish rules for its pro-
duction, shipment and distribution.
To take over the plant of any dealer
who refuses to conform to such prices
and operste it for the government.
To recSre all producers Of coal in
the coursy or in any particular area
to sell their product to the government,
which through some agency-the Trade
Commission probably-can sell coal to
the public at prices determined by the
government, the prices to be based upon
flair and just profit over and above the
cost Of production" as fixed by the
commission.
The pooling alternative plan author
lied in the law. it is believed tonight,
will be followed by the President and
Trade Commission at the outset, there
being no intention to take over the
coal mines, except in cases OF pro-
ducers who might deliberately seek to
defy the government.
worL;,o of pooIip0 plan
The pooling plan in the food law
Is a result of the Trade Commissions
recent coal report to Congress. The
report said:
"If the producer at each mine were
paid his full cost of production, with
allowance for. depreciation, mainten-
ance. upkcap and all the usual items,
and TO this were added fixed and
uniform net profit per ton, with due
regard to quality, the coal thus pro-
duced at widely varying costs, II
pooled could be sold through the gov
ernment at an average and uniform
price, quality considered, which would
be entirely tolerable to the consuming
public, and a price much lower than
could be fixed if an effort were made
TO fix a uniform price to the producer
The pooling of all coal in this coun-
try in the hands of the government, in
the opinion of some members of the
commission, will be the most accept
able form of price regulation. 1t is
held that it can be put in effect within
a few weeks after the commissions
investigation into the cost OF produc-
tion is announced. II is contended that
it would result in Immediately reduc-
ing winter prices TO consumers.
Public Opinion a Factor
Some members of the Administra-
tion believe that by bringing about a
reduction in coal prices for the public
before the winter sets in. the Presi-
dent will range public sentiment solidly
behind him in whatever he may at
tempt in other directions along the
line of price regulation.
If the plan is put into effect, it is
said, no coal dealer will have to go out
of business. He will merely have all
coal allotted to him by the govern
ment, which will also see that it is
properly shipped to him from the mines.
He will receive from the government a
fixed list of prices at which the coal
must be sold at his yard. and he will
know exactly the price which the gov
ernment will charge him for the coal.
II is insisted that there will be insured
to him a sufficient profit to warrant his
remaining in business.