New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-28
Consumers Urged
To Buy Coal Now
To Get Low rice
+. ID. Underwood, Pointing
Out Difference in Indus
try, Says Cost Is Likely
10 Advance i'm the Fall

!
situation with The Tribune yesterday
pointed out that the coal situation
was Fundamentally different from that
of many other classes of industry in
respect to both labor cost and condi-
tions of over and under production,
and he showed that in actual practice
there was no such thing as large over
production of coal. Neither were there
large stocks of coal carried over from
month to month.
Ma. Underwood said:
Some weeks ago The New York Sun
In an editorial article stated that the
people would not nor could they be
made to buy coal at present prices
The Outlook, another good paper,
printed after an article on the cost
of coal: The alternative is govern
ment ownership of coal and railways
We may agree that that procedure
would put up both coal prices and
railroad rates The inevitable and
unnecessary deficit would come out of
the public, and it would be larger than
any one dare forecast.
This is not prophecy only a
reference to what occurred under
Federal operation. The cost of mining
coal advanced, and the cost of trans
a
heretofore unheard of figure.
"The statement of The New York
Sun has proved to be truth, for it
has happened for the last twenty
years, and has earned the right to be
classed as twentyyear-old annual
recurring mistake.
Interest of Railroads
"The interest the railroads have in
the matter is simple. There is a grow
ing case of shortage of cars, for OBJ
vious reasons, the principal one being
that the cars worn out during the
period of the war have not been re-
placed, and the country at large is
facing car shortage. The railroads
are interested in having the coal move
at seasonable times, before the winter
difficulties of transport occur, for in
the end a coal famine is largely laid
at the door of the railroads.
"rhe railroad companies in some in
stances undertake to float coal. With
the harbor full of ice that has been
exceedingly difficult, some days i'm
possible, and always costly"
Won't Lay Up Stocks
!, Mr.. Underwood was asked whether
1t would be possible to compel the coal
miners to lay up stocks of coal dur
ing periods of small demand so that
there would not be this problem each
fall of meeting seasonal demand
which it would appear ought to have
been anticipated. He expressed the
opinion that no satisfactory plan had
ever been worked out. Asked whether
decreased labor costs might not help
to bring down the price Of coal, he
said, mo"
"The cost of mining coal is practi-
cally all resultant from the labor costs.
Beyond a comparatively trihing sum
spent for explosives, it is mined by
hand and machines-so that the cost
of mining coal is chargeable to the
increase in the cost of labor.
"The anthracite coal mines have a
contract with labor that does not ex-
pre until April, 1922. This contract
covers the labor of all the men en-
ployed about the mines, both above
and below the ground This labor is
all classified and under contract, and
of mining coal cannot be lessened, with
attendant effect on the price.
Taxation Increases
During the last few years the
item of taxation alone on the coal pro-
duced increased over 200 per cent.
Putting off buying coal until cold
ii
hardship on such of the people as are
unable to do otherwise. AS to The
Outlooks prophecy that the alternative
is government own ership of coal and
railways, government never did bet
ter or cheaper job than private con-
tractors. At times monopoly and
fear of the unknown have made it i'm
possible for the government to let
work to contractors, and have put them
to the necessity of doing work direct
ly-never economically"
Are rates on coal and other com.
"The many statements in the press,
and by many speakers, that the cause
Of the present dullness in business
and the high cost Of many COM
modities is to be found in the trans
portation cost are more fashionable
than accurate. Certain rates on GER
tain commodities to-day are too high
To Offset this, there are other rates
that are too low.
Rate-Making Structure
"The whole rate-making structure
has been reared ON a faulty founda-
ton. The rate-making bodies pro-
vided by law had to deal on the one
hand with the partisans who held that
al IdtCS WC4C wv 1OW anu Win Vic
other partisans whose slogan was that
all rates were cxtortionately high.
Between the two inaccurate statements
they endeavored to find proper mean.
Sometimes it was possible, and at
other times impossible, but the rate
makers should have the credit Of doing
the very best they could from the
faulty information at their command.
zone of two things happens when the
fact is demonstrated that commodities
are not moving by reason of a high
rate. Carriers sense the propriety of
reducing the rate. They see the folly
of tonnage ready to ride without the
necessary funds to pay its fare, and
the remedy is applied.
Should, however, they fail in this the
umpire, the Interstate Commerce Com
mission. has the remedy in its hands
and can put in rates that will move the
tonnage.
at cannot be too plainly stated
that it is not often the rate that
stagnates tonnage. Making railroad
rates is Mt it's perfect state when
traffic moves with the greatest free
dom and regularity. and at the same
time renders a proper return to the
carriers. When traffic is oppressed by
an undue rate it is invariably relieved.
"Clamor should not be mistaken for
truth. Let us not deal with the
second industry in the land by lynch