The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-08-12
PRICES OF COAL +.
TO BE LOWERED
FOR CONSUMER
Government Action Due
This Week to Reveal Rate
Fixing Policy.
HITS So A TON PROFIT
New Food Law Empowers
President to Seize and
Operate Mines.
PRODUCTION POOL PLAN
Federal Trade Commission
Idea May BE Adopted to
Curb Rapacity.
PRODUCTION POOL PLAN
Special Despatch TO TnE suN.


WASHINGTON, Aug. 11.-A reduction
Of coal prices to consumers is promised
in the immediate future. 1t is likely to
be general throughout the country and
will be direct result of the passage of
the food bill. The first definite move
which the Administration will make In
regard to price fixing will be coal. Ac-
ton that will reveal clearly the Govern
ments policy is looked for next week.
The food law contains provisions
which empower the President through
the Federal Trade Commission to:
Fix the price Of coal wherever sold
and to establish rules for it's produc-
tion, shipment and distribution.
To take over the plant OF any dealer
who refuses to conform to such prices
and operate 1t for the Government
As an alternative plan the President
through the Trade Commission can re-
Quire all producers OF coal in the coun-
try or those of any particular areas, IL
conditions are deemed to warrant II, to
sell their product to the Government
which through some agency 10 be desig-
nated-probRbly the Trade Commits
sion---can then sch the coal to the peo-
pie at prices fixed by the Government.
These prices are to be based upon
fair and just profit over and above the
cost of production as determined by
''' 'pn'~.,'1n, p"~s.,'..,,., :, r..u,.. -
The commission which is conducting
an investigation Into the coal situation
to-day issued statement as follows:
Barring increased wages to mine
labor present prices of anthracite at the
mines will not increase beyond the nor
mai 10 cents a ton September /, which
Will bring prices up to the winter cir
GUAR level. Any proposed increase in
anthracite prices greater than 10 cents
ton on September l is, therefore,
totally unjustifed. Present indications
are that bituminous prices will be re-
duced In the future. Further indulgence
In high prices and excessive margins on
the part OF dealers OF Washington or of
other cities can be regarded only as an
open declaration Of a policy OF 'profiteer-
ing on the part Of dealers"
The statement was issued after a
heated session between the commission
and representative Washington coal
dealers. whose profits. in the opinion OF
the commission. based on the dealers
own figures, have been excessive on both
bituminous and anthracite in the last
few months.
According to the figures gross profits
on bituminous sometimes were as high
as 50 ton and the net profits on an
thracite were Sl.25 TO $1.35 a ton. These
/ prof1ts were declared unjustihed.
The pooling plan in the food law is
| largely result OF the Trade Commits
slon's recent report to Congress. In
that report II said that equitable dis
| tribution and stable prices could only
be secured by pooling coal and coke
| production in the hands Of the Gov
| ernment
"lf the producer at each mine were
| paid his full cost OF production, with
| allowance for depletion. maintenance
| upkeep and all the usual items, and to
this were added n fixed and uniform
| net profit per ton. with due regard TO
| quality, the coal thus produced at widely
varying costs, II pooled, could be sold
| through the Government at an average
and uniform price, quality considered,
| which would be entirely tolerable to the
consuming public and n price much
| lower than could be fixed II an effort
were made to fix a uniform price to the
| producer"
The pooling Of all coal in this country
| In the hands OF the Government, in the
opinion of some members OF the com
mission, will be the most acceptable form
Of price regulation. 1t is held that Il
can be put into effect within "A few weeks
after the commissions investigation into
! the cost OF production is announced II
mediately reducing prices to consumers
on their winter supply
Public to Back President.
Some members of the Administration
believe that by securing a reduction IN
coal prices for the public before the win
ter sets In through resort 10 this pro-
vision OF the food law the President will
range public sentiment solidly behind
him in whatever he may attempt in
other directions along the line of price
regulation.
II the proposed plan is put into effect
1t Is held, 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 prop
srly shipped to him from the mines He
will receive from the Government
fxed list of prices at which the coal must
be sold at his yard, and he will know
exactly the price which the Government
will charge him for the coal. 1t s in
sisted that there will be insured to him a
sufficient profit to warrant him remain
ing in business.
For the consumer ii Is COntended the
plan will at once bring down the price Of
coal dollar ton. II not more for some
= domestic sizes.