Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-08-03
Our Coal Supply.

contains a surprising article written by
Hugh Reid concerning the coal pro-
euction committee Of the advisory
commission of the Council Of Ma
tional Defense" II all Mr.. Reds dec
larations are true and unbiased, the
iuel robbery is just as bad as is the
food piracy. He says (of the Council
Of National Defense):
This body is made up almost wholly
OF large operators who are closely at
f!iiated with transportation interests,
both rail and water. It's CHAIRMAN,
Francis s. Peabody, is the largest
operator in the Illinois Indiana btu
rainous field. He is a director in var
ious public utility companies, one Of
which operates in fifteen states and
serves 355 cities and towns. The insult
interests with which he is allied ~are
operating nearly 1900 franchises in IS
states. Through their control Of rail-
roads and by grace of various friendly
roceiverships, a bipartisan coal-rail-
road power combination has been built
up.
II has necessarily gone into politics
And, like all similar groups. it has
played no favorites. For instance,
Frederick w. Upham. assistant
. treasurer CT the Republican National
Committee, and Francis S. Peabody,
: fat fryer" for the Democratic Ma
tional Committee. have for twenty
years sat side by side on the same di
rectorates.
. Last fall when the great car short
age" occurred the Peabody Insull in
terests suffered little. Contracts
which INDEPENDENT operators were
compelled to relinquish were filled by
. the insiders
The condition today differs in de-
gree bat not in kind. The demand
has become so enormous that there is
nearly business enough to 60 round.
This is not wholly true, however, with
regard to cars. There are fewer cars
now than in 1914. Hence the import
ance OF their control
It is possibly true that there are less
- cars in existence than are needed. Yet
the deficiency is intensified. ny the
practice Of holding and storing laden
cars. II these abuses were done away
with millions Of additional tons of
the language Of the Federal Trade
mmission; The Commission be
lievee that there are enough coal cars
ir the country but that there are not
enough coal cars delivered to the
mines"
The position held by those who
we're in both the railroad and coal
businesses was thus of high strategic
value. Given the power and the dis
position to manipulate cars to their
own advantage. it is patent that the
inner ring had the entire industry in
- their grasp. That they SO used this
advantage is also apparent. During
May and June independent operators
reported 40 to so per cent. car sup
ply. The transportation interests
were running full blast.
Meanwhile the price of coal mount
ed At present the mine price has
reached $3.50 for mine run. At the
same time contracts made last gear
are being filled as low as s1.25 a ton
At the latter figure, there is still a
handsome profit, as the labor cost has
not risen appreciably. The price paid
to the miners in the Middle West BIZ
luminous districts has risen exactly
mills per ton during the last year
1o.6 cents in Is years. Tie records of
various quasi public consumers show
contracts within six or seven months
ut prices we'll below s125. The Terre
Naute and Eastern Traction Company
reports the average price paid during
the past year as sl.o7 1-2 per ton. The
mining cost by the way, as given hy
the last Illinois Coal Report averages
CT cents per ton. The average price al
the mine during % years throughout
the entire United States has ranged
from 80 cents to SIPS per ton
Under the circumstances. It's hard
ly necessary to cite further figures to
prove that prices are highly inflated
The chief heneficiaries We're and are
tie Inner ring" and it was to their
advantage to maintain the status quo
The position Of the privileged erour
seemed assured when Mr.. Peabody
was made coal director. He immedi-
ately made a patriotic offer Of s. 81
per ton Tor bituminous. Considering
that this price was far in excess OF
even the market, it is small wonde,
that Secretary Daniels rejected it in
eofar as the Navy was concerned
That episode was the first sign OF
cleavage between those who saw ir
the war the necessity for sacrifice and
those who saw merely a chance for
added profit.
II remained. however, for the Fed
eral Trade Commission to make the
split wide and apparent to even the
casual observer. 1t touched the heart
Of the problem when it announced
that the coal and railroad proo.-ns
were inseparable, They recommended
that the railroads be pooled and oper-
ated as unit under the direction OF
the President. Here was a plan with
teeth in II.
What then should be done? The
full weight Of Federal authority
should be put behind Secretaries Ba-
ker and Daniels and the Federal Trade
Commission. The roads should be
y,oolnd at once and operated up0r