Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-17
PRESIDENTS COAL
PROGRAM FAILS
Operators Increase Price, Com
plants of Public Service
Corporations Charge
SENATE TO INVESTIGATE
BY CLINTON w. GILBERT
star Correspondent Of the Evening rublle
Ledger

washington, Jan. 1T.--Thc complete
collapse Of the administration coal
program is indicated in the facts that
are coming out regarding coal prices
since the settlement Of the strike.
The administration policy was that
the temporary increase Of "A per cent
In wages granted to the miners would
be absorbed by the operators and the
price of coal to the public should not
be advanced The administration in.
sisted that it had won victory and
operators had yielded on all points.
Evidence is before the interstate com
merce committee of the Senate that 90
per cent of the consumers of soft coal
in the country are being explicitly billed
for the il per cent in the cost of wages.
The subcommittee, OF which Senator
Frelingbuysen is chairman. will shortly
begin an investigation of this subject.
The House is likely TO appoint spe
cial committee in a few days on the
subject
The matter was brought to the at
tention of the interstate commerce com
nlittee in complaints from the Public
Service Corporation of New jersey and
other public service corporations at
Buffalo New York and in western
cities. These corporations are receiving
bills from the coal operators charging
them expressly the old price for coal
plus ii per cent additional cost of
wages. This is done under express
terms of the contracts under which soft
coal is sold to all the big users of
coal. These contracts provide that
the purchasers shall pay for any addi-
sional in labor costs,
30 Per Cent on Contracts
1t is estimated that 90 per cent OF
all the soft coal used in this country is
sold unde' .,.uch contracts. The oper-
ators ar. - .bsorbing the advance in
wages on the other 10 per cent Of the
coal mined 1t will be recalled that
ex-Secretary McAdoo in supporting
Doctor Gartield's contention that the
price of coal should not be advanced,
said that Treasury records showed some
of the soft coal operators to make as
i high as 1000 per cent profit.
The increased cost of the public serv
ice companies will be passed on to the
public. All of the public service com
panies are in financial straits. Every
additional cost of supplies to them in
creases pressure on them to advance
their charges to the people. The Pub
lie Service Corporation of New Jersey
for example, operates a lot of trolley
lines. 1t complains of the shifting oi
z the IA per cent wage advance upon
IL because in spite of the fact trolley
fares in New jersey have been advanced
It is having difficulty in pay its way
With coal up in price this public serv
ice corporation as well as others viii
have to raise fares once more.
With regard to the steam railroads
of the country the situation IL not clear
In some quarters it is said they vii
4 4 ,FN,p =,
wage costs in their coal bills. At Dl'
rector General Hines office it wa
stated that certain roads which wer,
paying under their contracts smalle
rates than those fixed by the fuel ad
Tninistration on October 30 had bee
given permission to pay higher price
lp- to the level of the administration I
schedule. The steam railroads beinj
under government control. the Goa
operators may have hesitated to bill
them for the IA per cent increase.
Contracts Stand in the Way
Thus the administration 5 efforts tc
check the rise In the cost of living b,
stopping adva iCIng prices in this Ike!
commodity have already failed The re
suit does not have to wait for the actor
of the presidential coal commission
which has authority over wages ant
prices. 1net eAlSlluE COuITdClS SHIl
additional costs of mining through ad'
yances in wages on to the big cOnsum
ers. The big consumers, the publi
service corporations, furnishers o
transporta ton and power, gas and elec
tricity, will shift it to the public il
higher charges.
Even il there wcrc any disposition
on the part of the Presidents Goa
commission to make the operators shoul
der the advance in wages which vii
be granted and which will exceed tn,
IA per cent provisional increase. tn
existing contracts for about 90 pc
cent of the coal stand in the way.
What has happened in coal is wha
would have happened if the industr,
had been left alone to settle its dis
pute to suit itself. The oporators an
miners. having demonstrated to tn
public by means Of s strike that tn
price had 10 go up, wages would hav
heen advanced. the added cost shifte'
TO the consumers of coal in highe
prices.
And 20 Fhr rs coal. an underlying
product. affected industry and trans
portation a new cycle of high price
would have been started. Evidently on
has been. The public service corpora
tions are complaining to call attention
~ their straits When Congress fail
TO afford relief they will demand highe
tares and rates from the public. Th
higher price of coal will be an argu
ment of the steam railroad companie
when they demand a revision of thei
schedules, as they will be compelled t.
do when private ownership is re- es
tablished.