New-York tribune., 1918-01-20
Trouble Began When Lane $
Agreement With Coal Men
Was Nullihed
------~--
Then Came Dictator
And Rash Price Cut
Priority Orders Added Con-
fusion, and Fuel Chief Be-
came Panicstricken
By Carl Snyder

Tais might be called little epic of
hasnan brashness. 1t is a sorry story,
but the people of the nation need to
know the facts.
Fancy, if you will, the scorn Of
college professor--lct us say q pro-
fcssor Of mathematics or Of Latin it
suddenly he were told that 81 coal
HEAVIER were TO be put in his place. For
coal HEAVIER read coal mine operator,
and then reverse the case.
This story is how a pair of college
professors plus lawyer and the for
mcr administrator OF the telegraphic
pages OF sundry- newspapers is
called in common parlance telegraph
edtor-conspire to take charge of
the coal industry, and thereby brought
the industries of the nation nearly to
q standstill.
The shortage of coal which finally
resulted in DR.. Harry Gartield's amaz-
ing overnight order for general shut
down was not g new condition. The
coal situation has been nearly acute
for almost a year. 1t was just by q
squeak that the country pulled through
last winter.
By spring it was evident that the
pressure would not be relaxed. and
thereupon began the hystericaf bidding
up of coal prices of last May. 1t will
be remembered that industries which
normally paid from $1.25 TO $50 a ton
were forced to take coal at four or
five times these prices or close down
Operators Agree to
Cut Prices in Half
The result Of this crisis was con-
ference between committee from the
advisory commission of the Council of
National Defence, headed by Franklin
X. Lane, Secretary of the Interior, and
of the coal operators committee rep
resented by Frank S. Peabody. chair
man of the coal production committee
Of the commission.
This conference ended with the now
famous LanePeabody agreement fixing
a base price on the run of mine coal
of SO a ton. This was somewhere near
one-half the prevailing open market
price. THIS action on the part of the |
operators was entirely voluntary;
there was no governmental authority
TO enforce or compel this agreement.
At the close of the conference, address,
ing the coal operators convened, Secre-
tary Lane said:
II think I'm within the fact when,,I say
that no such hearing or gathering as sths !
fore or perhaps in the world. You have
responded men should to call made
upon you in the name Of the people of the
United States. think you have reason to
Of IL
for Governor Fort and the committee and
myself, we are proud of what you have
done
Bear in mind that here was an agree
prevailing price of their products in
half, made with a leading member Of
President Wilson'S Cabinet This
agreement was Immediately repudiated
by another member of President Will
sons Cabinet in violent attack upon
Secretary Lane and the whole commit
tee, virtually denouncing them as
parties to fraudulent arrangement.
Secretary Baker, then as now, presi-
dent Of the Council of National De
fence, put forth q statement which said
(ltalics mine):
My attention has been called through
the newspapers to the action reported to
hare tdken place during the last week by
the so-cducd committee of coal production
in cooperation with certain coal producers
leading to the adoption of resolutions in
favor of an early and accurate determina-
ton of the costs involved in the production
OF b'tunnous and anthracite coal as a
basis Tor some future action by some Of
hclal agency of the government in fixing
iair and Just prices for these products
bending such an ascertainment of costs.
This meeting to have adopted q reso-
luton whereby the operators present agreed
to sell bituminous coal at price not high
er than 50 a ton, and that this obligation
should remain in force until some such ac-
ton mad been taken by an authorized gov
ernmental agency.
The color which has been given to this
meeting IN the newspapers may we'll mis-
Lead the public into the belief that the
Council of National Defence has under