Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1918-04-23
eminent to make good deficits from
any and all causes.
Mr.. MkAdoo and MI. Williams argue

coal produced shall be sold at the same
basic price, regardless Of the identity
Of the purchaser.
This arrangement, Mr.. Williams
says, would save the public $40,000,OO0
In year by reducing the expenses Of
railroad operation by that much.
Taking Mr.. Williams figures as a
basis, It is reasonable to conclude that
SAC, 100000 is the amount the public
has been compelled to pay each year
in extra profits on its coal In order
that the railroads might have their
fuel at price which precluded a
profit to the operators and in some
cases lDpresented loss on produc-
ton cost. Undoubtedly this is good
time to straighten that matter out and
put the transaction on a proper basis.
Forty million dollars, even In these
days of billion-dollar loans and over
is q sum which deserves
more than a careless shrug of the
shoulders. Therefore It is worth while
to follow the reasoning Of these cap
tains Of government-controlle In
dustry.
Had the railroads been permitted to
net this saving of S40,000,000 It Is OBJ
yious that the coal producers OF the
would have finished the year
on April I, 1919, with 340,O00.000 less
to their credit than they may expect
under the presidents ruling, Of yes
terday, providing all the coal COM
panies should be able to elude bank
ruptcy that long. That would be huge
joke on the coal barons perhaps, but
IL DIR. Garfield's figures are within
shouting distance OF accuracy the joke
would rebound with sickening thud
and the public. next winter, would find
itself in the midst of coal famine
which would make that Of last winter
seem, in comparison, like g. joyful
weekend at q fashionable summer re-
sort.
For coal production would sink to
the minimum II the coal operators
found themselves compelled to sell
their output at loss. The government
has discovered that patriotism and
fiat pocketbook are but poor affini-
ties. Men who have things the gov
eminent must buy in order to win the
war-labor, raw materials, manufac-
tured articles, food, guns, ships. ct
the goods the more
speedily, the more cheerfully and with
far more patriotic ardor when they
are assured of a profit In proportion
to their industry.
Because the public and the govern
ment thought-and rightly-that the
coal producers had wrung too much
profit from their patrons in the winter
Of 1861, the Lever law was enacted
and the president, through the federal
fuel administrator, decided how much
the coal mine owners might charge for
their output. The maximum prices thus
fixed are considerably less than the
panic prices which preceded them, and
the country has Dr. Garfield's word for
It. backed blythe word Of his big force
Of expert accountants and statisticians,
that these maximum figures include no
more than q Just profit on the cost OF
maximum coal production.
Now clip cool $40,O00.000 of .
years income at that rate. Say to the
coal operators that they must sell
share of their output to the general
public at fair prices and the remainder
to the railroads at much lower figures
$40, 100000 lower.
Coal production would 90 down and
at least some Of the coal operators
would sink into bankruptcy. Newminea
would not be opened to increase an out
nut which must be sold at loss. Oh
course, the government would not per,
nit this to continue indefinitely. DR..
Garfield would do the one thing left
for him to do: that Is, increase the
schedule of prices the general public
must pay for coal, restore the old sys-
tenn of railroad favoritism and compel
the people to hand over the $40.OO0.OO0
they were saving on railroad coal az
extra profits on the coal they burned
In their furnaces in homes, factories
and business buildings.
Meanwhile, however, there would be
weeks of uncertainty and agitation,
during which coal production would be
at a minimum. The inevitable result.
of the ultimate standard OF
prices, would be q coal famine next
winter, and that II just what the Unit
ed States must avoid II the war is to
be won.
Already three weeks have been
wasted since the railroads. at Director
McAdoo's order, permitted
their coal contracts to expire and be-
ran to haggle with operators In an ef-
fort to beat down the governments
price standards. The first week In
April saw loss Of 100000 tons OF
coal compared with tho
production for the last week Of March.
II this loss was repeated last week
and this-and there is no reason to
believe otherwise-Mr. McAdoo's ex-
pertinent in railroad economy has cost
the county 4,500. 900 toms Of coal. or ap-
half as much as all the
mines in Iowa produced last year.
That production loss cannot be
made up. The country needs all the
coal that all its mines can produce
from now until the war ends, work
ing every day at top speed.
p,o.ldont wilaOn intimated yeSter.