The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-17
COAL MEN BALK
AT PLAN TO END
EXCESS PRICES
Association of Mine Owners
Refuses to Get Behind
Palmer Proposal.
FEAR ANTITRUST ACT
AttOrney-G General Ridicules
Danger of Prosecution for
Reducing Costs.
DEMONSTRATED, HE SAYS
West Virginia Operators Drive
Scale Down From $14 to
$6 a Ton There.
DEMONSTRATED, HE SAYS

tional Coal Association. in session last
Wednesday in the Waldorf-Astoria,
declined, II was learned yesterday, to
place itself on record as favorirg. Of
ficially, q plan for the abatement Of
extortionate bituminous coal prices.
1t took that course despite tho fact
that the plan IN question was urged
upon the board in a telegram from At
torney-General Palmer. and was ex-
planned and advocated IN an address
delivered by William McMurtrie speer,
special representative in this district
Of the Department Of Justice.
Among the members of the board of
directors there were some who ia
vored immediate action pledg!ng the
organization as in harmony with the
course advised by Attorney General
Palmer. These were outvoted. how
ever, and the whole matter finally was
referred 10 the associations committee
on Federal relations.
In the opinion Of we'll informed coal
men that reference Is equivalent TO
shelving the Attorney Generals over
lures. Their adoption at any time Is
not thought 10 be probable. The course
taken Is said to have been advised by
Rush Butler. general counsel TO the
association, and other distinguished
lawyers who were In attendance from
Ohio and other parts of the country.
See Danger of Violating LAW.
The main ostensib!e reason given for
refraining from favorable action on
the Department OF Justice plan was
that for the soft coal producers to
engage In any concerted effort for the
abatement of prices Of fuel might en-
tangle them In the provisions OF the
Sherman antitrust law. which contains
stringent provisions against price fix
ing This objection was put forward
despite the fact that Col. D. b. Wentz.
president Of the National Coal Asso-
citation. who was presiding over the
meeting, had received on Wednesday a
telegram from Attorney-General Pal
mer himself asking the Colonel to use
his influence in having the association
adopt resolutions similar 20 those
adopted by the coal operators of north
ern West Virginia. which had reduced
the price of coal at the mines I'm that
section. IL not already under contract
commitments AT low figures, from sli
TO s6 a ton.
The Sherman law buRaboo was raised
in spite of the fact that Attorney Gen
al Ea ~ IL.
legal objection was raised By counsel
for the West Virginia producers. had
r.dlculed the idea of coal operators be-
ing prosecuted under the Sherman act
for striving. not to increase, but to
lower costs to the consumer.
The National Coal Association num-
bers among It's members more than
5000 soft coal operators. including the
largest producers In America. Had II
seen fit TO adopt the series of resolu-
tions similar to those subscribed to by
the operators Of northern West Vii ginia
as Mr.. Palmer by wire urged It TO
do and as Mr.. Speer. his deputy. coun-
selled in person, "A sharp decline in the
present excessive prices would have
followed throughout the country That
Is the opinion expressed yesterday for
the Wholesale Coal Trade Associa ton
OF New York by its secretary, Charles
S. Allen, in statement prepared in
his office.
Attorney Palmer, urging that
the coal opera tors OF northern West
virginia use their influence to have
operators in other districts of the
country adopt a similar process OF
price reduction. sent the following
telegram 70 Everett brennan, chair
man OF the northern West Virginia
operators committee:
Referring to your report, az chair
man OF a committee OF bitumlnous
coal operators from the northern dis
trict OF West Virginia. that prices Of
bituminous coal IN that district have
been recently substantially reduced
through the efforts OF your committed
This is gratifying bur does no: afford
relief TO the rest OF the country. II Is
OF the highest Importance that the re-
auction OF prices thus begun saould he
extended so as to include operations In
other districts and coal for delivery
throughout the country.
81 am extremely deslrdus TINT such
action shall be taken by yourself and
other operators throughout the country
"a viii be to the best Interests VI the
country and will tighten the work OF
tho Department Of Justice by reducing
mo number OF prosecutions TO be In
s,i,uted for violations of the Lever Act
!, charging unreasonable priccs"
Threat In Pnimer's Telegram.
Among New York wholesalers the
orlnion is general that Attorney Gen
eral Palmer has decided to give the mine
operators an opportunity TO remedy con-
d,,ions az the sources of supply. Should
they neglect that opportunity or scorn
70 take advantage OF II the wholesalers
ace In the final paragraph OF the Dren-
non telegram a thinly yelled suggestion
that prosecutions to end prohteering and
high prices at the sources of production
vnl follow. That is one reason why they
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