Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-04-09
RAILROADS MAYLOSE
COAL PREFERENTTALS
Unjust Contracts Forced on
Operators Likely to Be
Discontinued
CAR SHORTAGE PERSISTS
State Fuel Administrators Called to
Meet and Discuss Plans for
Coming Year
Washington, April ..


Radical changes In the purchasing
Of coal by the railroads Of the United
states. which may increase the cost
of operation under Government con-
trol by as much as Si0,o0O,OOO, arc
being considered I'm a series Of confer
onr,s between Dr, Harry a. CARRIED,
Federal fuel administrator. and John
Skclton Williams director OF tlnancc lot
the railway directorate.
The railroads VIII no longer enjoy
tho nr,ferontial rates which they have
I'm the past forced from the operators
in return for providing 100 per cent
empty ears to favored operators. lhe
exact pricc which the Government must
pay has not been determined.
II is expected that, as result ol
whatever agreement is reached, the rhl'-
roads and war Industries VIII be sup
piled. operators viii obtain as nearly
as possible the number Of cars that th'n
production warrants and working CON
dtions will be maintained at an elu'ta-
blc level i'm all fields.
II was held that TO allow tho railroads
to purchase at any figure too greatly at
variance with the price fixed by the fuel
administration would prevent the con-
summation of any Of these results.
In the past railroads and others of
the larger industries have been able "a
command from the mines prices that the
ordinary consumer could never hope td
get. Contracts have come to the at
tcntion of the fuel administration call
ing for coal at a figure far below the
cost Of production. Most Of them cN'
pircd on April I with the end Of the year
But there are many instances Of long
time agreements, and the cancellation OF
all such contracts is among the steps
/ being considered.
| The prices which have been set by tho
| fuel administration were all worked out
/ on a basis Of 10 per cent over the cost
| Of production, and provide no place for
| contracts so per cent or more below
/ that figure.
/ The problem is considered all the more
/ serious by the fuel administration, due
| to the fact that there has been but sliEh'
gain in the car shortage. Figures ISSUED
/ by the Bureau Of Mines for the wccl
ending March % showed that the de
parture from the requirement Of the op
orators was 90 per cent.
The general figure was misleading
7 however, fuel administration officials
declared. because in the big coal-pro
duCing centers the shortage was muct
greater. In the Pennsylvania fields tn,
.
per cent to 47.2 per cent. while i'm IN,
West Virginia coal-produCinE areas the
/ percentage ran from 27.2 to 42.3
| Unless this situation can be relieved
| it was stated the American people vii
face the same situation next winter tha
| they did last, for there can hr no de.
| crease in the constant demands of tn,
| railroads and the war industries. II,
/ matter how much production may be
! Curtailcd.
! II is for this reason, It was stated to.
/ day, that the fuel administration Il
| hammering on its advice to buy early
! Unless the operators can definitely dc
! termine through the slack months tn,
/ production Of which they can dispos
/ they will be overwhelmed with the com
/ ing Of cold weather by the requirement
| Of all classes and face an impossible
/ situation.