New-York tribune., 1918-07-02
pro6teering Report Stirs
Director Garfield to
Action
Would Sell Fuel to
Public at ixed Price
Only Fear Is That Produc-
ton Will Be Be-
hind
By Theodore M. knappen

By theodore M. knappen
WASHINGTON. July 1.-Protiteerine
n coal may lead to the government
..t;nc over all coal mining for the pc
-;od of the war. or. rather, what is
,ractically the same thing. purchasing
n. entire output Of all the mines and
then selling it st fixed prices.
discussing the Trade Commissions
nrosteering report to-day. Fuel Admin
;s.rator Garfield conceded that enor-
mans profits were made in the coal
bnsipess last year. As he put it. the
soal producers made more money last
YEAR than they had ever dreamed of
seeing in a single year before. There
we're two reasons for the magnitude
cf this profit. The first was that most
q, the years output was under con-
.r,ct at high prices before price regu-
ls,ion was undertaken, and such con-
tracts were permitted to stand. The
second was that any price made high
enough to meet the necessities of the
high cost mines, and thereby keep
inr them in production. involved a
large margin Of profit for the low cost
mines.
The choice lay between stimulating
production to meet the necessities of
var by price that would mean exces-
sive profits to some mines and produc-
oil
prce that would WELD fair profits TO
the low cost mines and put the others
out of business. The first method was
adopted, and in the circumstances was
the only one that was initially con-
sistent with the country's best inter
ests.
There were two ways of meeting the
evil Of excessive profits. One was to
take away the excessive profits by ad-
ditional excess profit taXation: the
other was for the government to buy
all the coal, paying each mine the
price its costs made reasonable, includ-
ing fair profit. The former method
could divert the excessive profits from
the Individual coal producer to the ma
honal Treasury. but would still leave
an injustice to the consumer.
The latter would do justice to the con-
sumsr, giving him a lower price. ONLY
oy additional excess taxation could the
Slready accrued excess profits be taken
@way from their possessors, but the
other plan would prevent them here
alter. The question would still have
10 be considered as to what degree
afge prohts mad stimulated production
ana as 10 whether moderate profits
output. -'A- VA
Dr. Garfield did not even intimate
slas the 1uel administration had any
Mssen' lhIention OF taking over the
auylng ana selling of the whole coal
,srpo1 ,uspu' ot 1he united States, but he did
.sseai lnat the subject is receiving
very ciose study, and that so doing
;se ssems 20 De the only way of equaliz-
ag proflts as between producers and
minimum price.
s..y Every coal mine in the United
s@.es is making monthly cost re-
s..'S M 70 she tuei administration. These
sad s-s peing os graphically charted. At the
.ao OF July they will represent a full
I've .1s months and will provide full
,;on suu ausnehtlc data for future regula-
ns. ,.a VI prices, whether under the
p'essaI msss system or through govern
i.ts nls. purchase Of the product. 1t was
woal, pasnI 'laV' Whatever was done, nothing
,o ~uala De permissible which tended to
drs;es ddrs;fes the maximum output of coal
Ounng the war.
i. IL cnarting the production costs of
.ss .ss coal mines the fuel administration
tusrs tass.s Doth the straight company re-
;ura.. ts."s and It's revision of them after
,h.. ,h..'.ilsatlon. 1t is worthy Of note
.Sst tSst ;ne IN two do not wary greatly, and
49," ,as. III many Instances the operators
.Inea s,a ~ tnelr costs erroneously low
hem. '''' d V'''i "ao 10 raise
tl1 Dr. Garfield says the Trade Commits
s,sa. sa Investigations have been of
y. sasa. value to the fuel administration,
sss NV points out that deceptive infer
nsns ,aSss may be drawn from the state
ssn;s as 'nat twenty-three typical com
sslies saIa IN the Central Pennsylvania
ss.;,aa how inaoe @ 20 cents ton in 1917, as
sr"se ~ cents in 1916.
80, r tnree successive weeks now
nss,. va. production has passed the record
,,aa a.A Oh i2,0V0, 900 tons week, and the
ns ,s0ls indicate that the production
4 whiir L'!nef IS increasing, the securing
VI "alch al has been one Of the princi-
! oDJects of the recently inaugural
H. 'ampalgn to increase production.
s.s. i,s patriotism Of the miners is in
isa isa'ta "a ny news of general disposi-
jis4 ir4 &c 20 unit the usual three day hol
h os a. the Fourth of July to one day.
,b.ng Il we instance the miners voluntarily
baddAbSoned had bed picnic Cor which plans !