Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-07
AGREEMENT IS REACHED
HERE ON NEW PROPOSAL
TO SETTLE COAL STRIKE
CONTINUED from First Page.)

measures now being taken by the
railroad administration, which is act
ing the fuel administrations agent
in distributing coal. He said further
the production of coal had increased
every day this week, and Indicated
his belief that a majority of miners
would sooner or later accept the set
Element basis which the union lead
ers have rejected
Wartime Price for Coke.
Another move was taken late yester-
day by the fuel administration to re-
strict coal consumption by resuming
the fixed prices on coke established
during the war period. Distribution of
coke also will be regulated. Gas coke,
however, will not be affected.
Attorney General Palmer took steps
to prosecute oil producers in the west
who are charged in a complaint made
by Senator Capper of Kansas with in
Creasing the price of oil from ~ to
$3.50 a barrel since the inception of the
coal strike.
Charges of the American Wholesale
Coal Dealers Association that the rail-
road administration was refusing to
pay for coal confiscated or diverted
were denied at administration head
NN = .. . - -. -
Hines States Conditions.
Director General Hines declared
last night. y
! Statements having been given cir
culation to the effect that the railroad
administration is delaying payments
for coal in order to obtain a lower
price. and that as a result mines now
producing coal will have to be shut
down within ITO hours. feel that the
public should be treasured and in
formed that there is not the slightest
foundation for such statements.
The coal now being produced falls
into the classes, first the coal actually
used by railroads. and second the coal
which is diverted under the orders of
the fuel administration to essential
consumers. The coal within the sec
cond class, under the plain terms Of
the fuel administration orders. which
are the same as those in effect during
the war. is to be paid for by the new
sonsignee, and not by the railroads
long distances. because practically no
coal is now being produced in the
west and as result it takes some
time to render bills to the new
consigneeS.
"As to railroad fuel. instructions
istration prior to the present agita-
ton of this subject that it should be
paid for promptly. and in addition
special arrangements have been put
actually, needing money to continue
operations may be enabled to obtain
money through the railroads. AS an
evidence that such Instructions are
being carried out arrangements have
been completed under which the
Chesapeake and Ohio railroad has OBJ
tanned 100000 fromgthe railroad adj
ministration to pay operators on that
road, and railroads in the Allegheny
region have been instructed to pay
for coal on "a weekly basis.
RuIes Note Negotiable.
ITO assist further operators to OBJ
tain funds. the Federal Reserve
Board was requested to rule, and has
ruled, that the note of a shipper of
coal who has coal in the possession of
railroad to be transported, delivered
OF diverted, and who is to be paid by
the consignee or divertee. is a note
issued OF drawn for commercial or
industrial purpose, within the mean
ing of section 10 Of the federal re-
serve act, and is eligible for redis-
count by federal reserve banks. The
| railroad administration has arranged
that certificates shall be given by the
agents of the railroad administration
to shipper on the loading of coal,
so that 1T may be established that
note is Of that character and to make
1T desirable paper for rediScount by
federal reserve banks.
The railroad administration is not
delaying any payments on account of
any dispute as to price. The only
questions at issue as to price involve
some wholesalers as to whom the in
! tent of one of the fuel administra-
hoo nt n w
clear. and as to some coal sold under
contracts made prior to October 80
/ and shipped after November IS.
Neither of these questions involves
| serious problems.
The public should understand that
the railroad administration will not
permit any coal operator to close
down because coal delivered to rail
| roads for their own use has not been
paid for, and therefore the statements
mentioned are causing undue alarm.
| ut should also be understood that
/ these statements emanate from the
same source which soon after the
present strike began proteste ed
against the fixing of the government
| maximum prices on coal and regard
| ing which the attorney General stat
| ed in a letter that Your proposition
| amounts in effect to declaration that
coal dealers should be permitted to
take advantage of these abnormal
conditions and have their prices based
entirely upon the law of supply and
fdemand, which is only another way of
| saying that they should charge the
kIMhlic whatever they please.
Increase Coal for Illinois.
The railroad administration agreed
laAs night on representations from
Hi a OILS to increase the amount of
coal for that state by about 500 cars
per day out of an increase of 1,500
cars per day to the central western
and Northwestern region. The Chi.
cago di.trict will receive about see
cara. the, remaining 100 cars going to
other scot. ions of Illinois.
None Of the coal to be included in
this ine,.eaA,e has yet been moved,
but deliveries will start within a few
days.