Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-26
Senate Committee Takes
Up Extension of Control
and Price Fixing by U. S.

Extension of government control and
price fixing to coal. iron and steel and
was considered today by the SeYate in
terstate commerce committee. Coal was
the first subject taken up. with Ohio
and Pittsburgh operators as the first
witnesses. A speedy inquiry was
to proposing amendments to the food
control bill for federal regulation Of
basic comm odities.
Bills by Senators Pomerene and Cum
minis to have the government fix prices
of coal and railroad supplies were the
immediate proposals before the commits
tee, but its investigation promised a
much broader scope, including many
problems OF production. distribution
promised to develop information sup
plementing the proposals before the
Senate agriculture committee for gov
ernment control OF iron, steel, copper,
lead zinc and other materials.
c. M. Moderwell, a Chicago coal oper-
ator, predicted a serious coal shortage
at the head of the lakes unless some ac-
tion is taken to meet the situation. He
said he believed the fixing Of an arbf-
trary price now is undesirable. Fear of
prosecution under the Sherman law
prevents the operators agreeing among
themselves to bring down the price, he
declared.
Could Bring Down the Price.
. Chairman Newlands expressed the
opinion that the Attorney General
would not construe the Sherman law
in that way.
II think If the Attorney General
would tell US that the law would not be
used against us. we could bring down
the price Of coal very quickly" Mr..
Moderweu replied.
He said the coal situation at present
is. in part, caused by the fact that the
mines operate only eight hours day.
while a majority of industries are in
operation twenty-four hours a day.
Mr.. Moderwell said that the supply
of coal is short, but expressed the opin-
ion that the production has slightly in
creased, resulting in a slight recession
in price.
ton Of transportation is alone respon-
sible for the present high price of
coal?" Senator Pomerene asked. after a
series of questions.
ITO a material degree" he replied.
Questioned further, he said the cost
of transportation now is no more than
last year and in some cases less. The
approximate total cost of mining coal is
about SO cents ton more now than
last year, he declared.
Average Increase rs to 100 Per Cent
What is the average increase in the
Pomerene asked. 1T has been very
large" he replied. II would say that
it has been from rs to 100 per cent,
but that Is only an estimate"
"Is it not fact that in some localities
the increase has been 300 per cent?"
Senator Pomerene continued. Mr..
said he did not know
How, then do you justify the in
crease?" he was asked.
Coal operators are just as human as
else, and they have taken
advantage Of the conditions and the
people"
Questioned regarding what price he
believed would be fair to the coal oper-
ators. the witness replied that a profit
Of % cents a ton would be just He
said he believed the profit on coal sold
to railroads should not be less than 81
a ton.
A number of members of the commit
tee questioned him regarding the like
lihood of a reduction in the cost of
production.
Il see no prospects Of decrease" he
"The cost of production will more
than likely increase, won't it?" asked
Senator Cummins.
YES" he replied.