Daily Kennebec journal., 1919-07-14
Industrial Heads
ID England Pass
Buck toConSumer

London. July 1S.-Seldom has any
people received such a swift and vivid
lesson in practical economics as the
British government has given this
nation by the notice in the House
OF Commons on Wednesday that it
was raising the price of coal six
snlllings per ton from next Wednes-
day.
the response has been immediate
ana specific and comes from almost
every branch Of industry in the king
uom, from steel manufacturers, ship
builders, ship owners, railway mana
gers gas works and almost all sorts
OF manufacturers and industries
down to laundries and bakeries. They
explain just what the government
order will cost their concerns and
serve notice, also that they must pass
the cost on the buyers and consum-
ers.
Great export industries declare that
the increase in the price of coal will
hano'cap them IN their cooperation
with other countries, and may mean
IN some Instances stoppage of their
plants and increasing unemployment
Inc general public is told how much
the higher price Of coal will initiate
llvins expenses. The government ap-
parently meant this to be an abject
lesson as to what would result from
the prevalent agitation for higher
wages and shorter working hours.
II also seems t. be trying to throw
colo water on the campaign for the
DECENTRALIZATION Of industries by try
ing TO show that government man.
'gement does not mean that wages
can be increased and prices decreased
indefinitely. Labor has taken I'D the
gauntlet Immediately, charging the
government with wishing to kill the
plan of naturalization and also de-
ciarinS that the government is ia.
Norlng capitalists and misrepresent-
ans conditions by bungling book
keeping.
During the last stages of the war the
, governWent was running the railroads
at a ioss,zaccording to a statement made
oetore the House of Commons by Sir
Eric Geddis. minister for national ser.
vice and reconstruction. This loss is
now at the rate of s6ooooOOo per year.
Inc deficit in the coal industry is esti.
| mated at Gi6600.000. The subsidy on
bread-that is. the difference between
the cost of wheat and selling prices
mas amounted to G5OOO0. 900. 1t is esti.
mated that 10-penny loaf would cost
/ smiling if sold on an uncontrolled
market. Coal is in a different category
because the government has fixed
prices since it took control of the
mines. and has fixed them at a rate to
permit the weakest mines to make a
profit. The strongest mines made large
profits, but 50 per cent of these came
back through the excess profits tax.
The government holds that the in
crease of six shillings was necesstated
oy increased wages granted as result
OF the repor: of the commission headed
by Sir John Sankey and the falling off
of production. The present production
OF the railways and miles is that there
l. government control with private own.
ership.
The question agitating the country,
particularly politicians, is whether the
government proposes to adopt the de-
mand of labor unions for nationaliza-
tion.. Col. Winston Spencer Churchill
secretary for war. told his constituents
in Dundee. during an address in the last
election campaign. that the government
had decided to nationalize the railways.
Conservative members of the Lloyd
George coalition cabinet opposed this
bitterly and appear to have carried the
day. Andrew Bonar Law. government
leader in the House of Commons. said
in the House on Wednesday: at is
utterly impossible that an industry like
Continued on Page 4-Coi. "