The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-08
PREDICTS EARLY DROP
Efforts of Mine Owners Al
ready Showing Great
Results, He Says.
RENEW HEARINGS TODAY
Senate Committee Expected TO
Report Findings of Ses-
sions Here Soon.

The Calder-Edgs threat 70 nationalist
the coal mines unless prices are lower
by the time Congress convenss next
month is not the remedy for high coal
prices. according TO Everett Drennen.
ono OF the largest coal operators In West
Virginia. and head Of the recently
formed fair practices committee OF the
coal operators in the northern ieids OF
that state.
In a statement issued yesterday at
the Waldorf. Mr. Drennen Sad proper
cooperation between producer and con-
sumer. based on recognition of the
natural law OF supply and demand. Win
lower tho coal prices, once unfair prac-
tices are done away with. without Gov
eminent interference.
His own committee since its organi-
zatlon several months ago has NO sue
ceeded in abolishing speculation that
the price of soft coal at the mines
dropped from s14 10 sc In a single day.
he said. Moreover. he added. similar
committees are being organised or
already are under way in every coal
producing field in the country. with
ike reSOlts IN Slknt.
'The coal industry Is itself correcting
the conditions which brought II into bad
repute and which led 20 tho recent high
prices of coal. and has proved that with
4 proper system of cooperation between
producer and consumer there rs no nee
essity for public Interference In the In
dustry," Mr.. Drennen stated. THE ma
tionalzation of mines or Federal con-
troll OF the industry would not solve
the problems In this basic industry. In
which conditions bow to the natural law
Of supply and demand. Unfair prac-
tees have in the past influenced the
price of the commodity to some extent.
but these have been eliminated by the
! coal men themselves and must certainly
be kept out
1.-The situation complained OF arose
when conditions were largely caused by
such retarding influences MS labor
trouble and transportation, the latter
being the most important factor. Tho
coal problem N a distribution problem.
and naturalization of mines will not
cure that evil. The operators by a vol
untary cooperation have shown that they
can control the worst feature in the
distribution problem, the nlegitimste
broker. And by their cooperation with
their fair practices committees enough
coal has been made available ut ex-
tremely reasonable prices TO indicate
general relief from high prices"
Mr.. Drennen pictured the disnay OF
the honest coal operators as they
watched the prices pyrsmided by spec
ulators. who rushed Into the business
when prices began TO rise, naturally be-
cause OF transportation congestion.
They knew they could correct the
conditions, but they felt they could not
get together to work out plan TO stabil-
'ze prices without running afoul OF the
Sherman law or the Clayton act" he
said. They were advised by counsel
not TO discuss prices. Consequently they
were all forced to suffer the stigma Of
unfair methods pursued by small
minority"
Complaints TO the Department of Jus
tice about this situation led We 600 op-
erntors In the northern part OF West
Virginia, whose estimated annual OUT
put is 100000 tons, TO form COM
nittoe and seek cooperation from. the
Federal authorities whereby the op-
orators expert knowledge might be used
legally 10 remedy conditions. Mr. Dren-
men related
Every complaint has been adjusted to
tho satisfaction or the producer and the
consumer making the complaint" he
continued. THE chief means by which
this has been done is the elimination OF
unnecessary brokers, no moro than two
being permitted TO engage now in a
transaction between the producer and
the consumer"
The special Senate COMMITTEES on
Housing and Reconstruction. headed by
Senator Calder, left New York last night
TO resume in Cleveland to-day its In
quiry into the coal situation. A session
will be held In Chicago the next day
and successfully In other Western and
Southern cities until Thanksgiving. A
preliminary report based on its findings
IN sessions held IN New York through
several months il expected TO be ready
in few days.