The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-02
GARFIELD DEFENDS
COALPRICE FIXING
Says Abnormal Profits Were
Made Before Govern
ment Acted.
HIS PLAN FOR THIS CITY
He Asserts Anthracite Ship
ments Are Ahead Of
Previous Years.
So,ciai Despatch to The Sun.

Spectdt DtSputCN ~ lhs Ss'
WASHINGTON, July 1. -Alegations
that abnormal profits are being reaped
In the production of coal. contained IN
the report TO the Senate Of the Federai
Trade Commission Saturday. came In
for an explanation and denial to-day
at the hands Of DR.. Harry A. Garheid'
the Fuel Administrator.
He challenged the commission TO de-
wise a plan for restricting the earnings
OF every industry IN the country 10
given figure without resorting 10 tne
expedient Of excess profits taxation,
which, he said, puts an unfair hardship
upon the purchaser and consumer oy
compelling him to pay excessive prices
under scheme of false economy
Coal prices are fixed by districts and
areas. said Dr. Garfield. with consid-
Grafton to wage conditions and general
costs OF operation.
Operating Costs Vary.
Some OF the mines, he added are
worked at n smaller operating cost than
others, and thus show a higher profit un-
der the fixed price policy of the Govern
ment. Companies with improved ma
chinery or favorable location for rer =
ing the coal from the ground will reap
larger profits on their output under fxed
prices than will a mine with old ma
chinery or unfavorable physical location.
DR.. Garfield pointed out that he has
not been able yet to determine the fiuc-
tuations and variations in the cost or
producing coal for the reason that the
Fuel Administration was brought into
existence less than a year ago. He said
further that the report covered period
OF time when supply and demand were
the controlling factors in the market
rather than fixed prices by the Govern
ment. and that unusual profits had been
reaped by some coal concerns at that
time.
An elaborate plan OF determining on
standardized basis the cost OF producing
coal has been in use by the Government.
DIR. Garfield explained, and has been APP
piled to all of the coal mines. The data
collected by this method will be available
at the end OF the Fuel Administrations
first year.
Plan for Supplying New York.
Explanations of the plan for supplying
New York city with coal next winter
we're sent to number of consumers to-
day by DR.. Garfield. The plan as out
lined by him is:
ton in New York city you are advised
that there is a steady movement of do
mestic anthracite now going into Greater
New York which is ahead Of the pre-
vious year shipments on proportionate
monthly basis. Distribution this year
Is following the lines OF the coal year
1861, or in other words the period
from April !. 1916. until March 81, 1917.
During April and May this year the
figures are 1.225.524 domestic sizes and
500, S9S smaller. or an average of 612.-
1872 per month. You will, therefore, see
that Greater New York on the basis Of
monthly shipments is getting more do
nestle coal than formerly.
1.-The State of New York has been
granted approximately 10 per cent. in
crease in it's allotment of domestic an
thracite this year over the tonnage OF
the basic period, which should result
in an average increase to each commu-
nifty therein unless different adjustment
should be made by the State Fuel Ad-
mtnistration. and, generally speaking.
the coal shipping companies will surtiS
their dealers accordingly"