New-York tribune., 1920-02-03
Industries and All Public
Utilities, Including I. r.
r.. Face Possible Shut
Down if Supply Fails
Seizure of Cars by
Rail Board Blamed
Price Fixing and Condi-
s1tion of Weather Help
/. to Cause Fuel Crisis

Threats of paralyzing coal
famine for New York and the sur
rounding manufacturing district
~ere added yesterday to the influ-
snza epidemic as an obstacle to in
dustry
Unless cars can be found to bring
the fuel already mined from the an
thracite district to the city, coal men
declare that many big plants, includ-
ing public utility corporations, will
he forced to close their doors.
An unprecedented freight car
shortage, government price fixing
and weather conditions are all cred
tied with combining to empty the
ety's coal bins and prevent them
from being reflled. A canvass of
wholesale dealers in this city yes
terday indicated that mine receiv-
ing so per cent of its normal quota
Of cars was the exception. A mine
with half it's care requirements was
described as lucky one, while many
we're struggling to do business with
far smaller percentage of cars than
the lower figure.
Railroads Commander Coal
.,On the day the bituminous coal min
ers walked out, November 1, the 10000
sars of coal then in transit, either on
rairoad sidings or moving toward their
Destinations, were commandee-cd by
j.. railroad administration. Much of
.hls was New York and New England
sorHd fuel.
Ccal dealers whose coal was taken
,ay that they still are unable to learn
he whereabouts of the coal or the
-'ars, and many months more may
,i-pse before they get either. Some OF
the cars have been reported as far west
rs Salt Lake City and as far south as
.iississippi. The Illinois Central Rail-
yoad alone has q record of 1872 cars
.;us taken. with value of s526,820.
Meanwhile the city's public utilities
Corporations have been forced to re-
,olt to numerous novel devices to keep
iaer fires going. Fuel is being brought
ny shin from Hampton Roads by the
: ew York Edison Company at an added
ypense estimated at from 81 to So
on over the figure fixed by the govern
nent. Cost of double lighterage, de-
nurrage and other incidentals to this
method of fuel handling are responsible
or the added price.
Fires Banked Awaiting Fuel
One branch Of big Brooklyn cor
poration was forced to bank it's fires
'or fourteen hours while buyers were
'currying over the Pennsylvania coal
cid in search of emergency fuel. The
lnterborough subway has been kept 60
ing by buyers who have increased the
rapidly diminishing supply of fuel by
emergency orders wherever they might
De filled. Subway officials said yester-
day that the situation was somewhat
better, but far from solved.
Government price fixing and compli-
cations that have resulted from this
arrangement following the coal strike
are declared to have played an important
part in the present shortage. Under
the cost arrangement provided at the
Conclusion of the strike settlement the
average price for coal mined in central
Pennsylvania is S2.95 ION the open
market" But the difficulty with this
ngure, according to the seeker after
1uel, is that there is no open market.
Bunker coal may be sold, under the
governments scale, at S1.35 premium
over the price fixed for local consumers.
In this provision the government fol-
lowed the British plan, which was
worked out on the theory that the for
eigner should pay a profit that might
not be exacted from the local CON
sumer. Another provision, later reached
oty the government price fxers, was
mat this new agreement should not
interfere with contracts previously
reached between dealer and consumer.
Flaws in System Seen
ihe two exceptions to the original
price arrangement are the flaws in the
system that operated to wipe out the
open market supply, say the big deal
e1s. Many of the biggest dealers had
contracts that included provision
ealing for an increase in price equal
" any increase in the cost of labor
SSsi,ng the period of the agreement.
Ieh 1aeh contracts are permitted to add
- per cent to coal SO sold
q. Many OF the mines have contracts
T..
uyssiraole, and it is not surprising that
aa. am OF their coal now is going under
sohtfact,' said one dealer interviewed
sesefday. Others can hardly be CEN
sure. Sa'ed Tor seeking the bunkering trade
n,;s masn IT is permitted to charge a pre-
~Tm Ti OF 81. .35 a ton for this business"
Inc total of coal taken at the be-
ginning of the coal strike by the rail-
~ 9yau ~. administration is estimated at
i;,%0oooO ~ tons. Practically all of this
stss.0, str was diverted. from the East and
dis,s;sa dissa west on the theory that the
stats. '.s IA the Middle and Western
You'd be in the most desperate
.. ,vae Of the problems that suddenly
sSsii'onted Ss.i the railroad administration
s,i.a "Ma the conclusion of the strike came
s.s s1 the discovery that thousands OF
sa,s s OF expensive anthracite coal and
ss'n, or dust, were standing on tracks
& sletroit. Consumers refused to take
rs coal, which they had not ordered,
ssaase ssssaase of the higher price, the added
".sp,sht charges and demurrage.
fu.0 aus the railroad administration re-
scss cssa to accept the decision of the
dsasamers. A coal embargo was or
ssi. sa !, against the state, with the re-
ss.., ~. mat consumers were starved into
iss'.sanasing \ the coal that had been sent
Mem during the strike. The fuel
consumed before the embargo was
I. 1--WE Of the complaints Of coal dealers
ssuAt their commandeered coal has
r,