The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-10-24
MORE GOVERNMENT IN BUSINESS

MORE GOVERNMENT IN BUSINESS
Undeterred by the disastrous results
of government in business that are
seen today on every hand. government
regulation OF the coal industry is
again demanded in bills in congress.
Senator Kenyon, of Iowa, has intro
duced two measures in the senate, one
to bring about such regulation, the
other to define and punish 'profiteer-
ing" Senator Kenyon is chairman OF
the senate committee on education
and labor and of the special commit
tee that has been investigating the
West Virginia coal situation.
The new coal regulation bill is sub
stantially the same as the measure
introduced in the house of represen-
tatives by Congressman Newton, of
Minnesota, on August "a. 1t is similar
to the Calder coal control bill and has
some of the features of the so-caned
Freltnghuysen sterilization bill.
The regulation bill is substantially
an emergency measure, altho some
features, such as authority to gather
statistics, would be in effect at all
times.
The bill on "profiteering" makes ex-
plicit provision as to the limit of prof
it's that may be made by coal opera
tors and distributors at all times, 1t
is not an emergency measure. 1t
definitely fixes the per ton profit that
may be allowed in all sales of coal in
divisions of 1000 tons, or under, a
month, 5000 month and up.
No provision is made in the bill for
limiting the losses. According to the
testimony of those conversant with
the coal mining industry the average
price at which bitumiaous coal in the
United States is selling today at the
mine is approximately $2.29 and it is
now costing approximately $3.50 per
ton to produce this coal, so that I'M
der present conditions the bituminous
coal industry of the United States as a
whole is selling its output at loss.
No consumer should complain OF a
$2.29 price for coal at the mine. It is
far less than any other important
commercial nation of the world pays
for it's coal today. The consumer of
coal, however. complains because the
cost to him in his cellar seems Excess
sive. and he blames the coal producer,
distributor and retailer for that fact
He does not realize that when he pays
his coal bill he not merely pays for
coal but also pays the wages of loco
motive engineers and firemen, truck
men and conductors, switchmen and
section hands, railroad shop men and
office employees, which are covered in
the freight charge on that coal; nor
does he consider that those wages
have been fixed upon their present
high scale by the action of duly con-
stituted authorities of the government,
and that they prevent the reduction
OF transportation charges on his coal.
The average freight rate on bitumi-
nous coal hauled in the United States
frcm mines to consumers in the five
years from 1912 to 1917 was approxt-
IEately $3.50 per ton. At present the
ave!age freight charge on each ton OF
bituminouS coal moved from the
mines is a little more than $3.50 per
ton, an increase of nearly 100 per
cert. That total increase in freight
charges alone on bituminous coal rep
resents an increase in the fuel cost .
consumers OF ever $5oO,O0O,OO0 per
year. Tho consumer finds fault with
the producer fol- that condition, when
the producer suffers under it as we'll
as the con6uEltr. and is just as pow
erless to remedy it.
There was a period when the rail-
roads wer. embroiled with the rest If
the country. Those served by the
rni1ways were in opposition to the
carriers. THE result is written up vi
the statute books of the United States
tcaay and has r:veted letters upon +he
railways which have crippled the
transportation system of the United
States. The railways suffer under
that result. but no, 100000 citizens OF
the United States suffer more.
At present there are influential po-
litical leaders in many states, there
are men high in official circles at
Washington. who deliberately desire
to bring the coal industry of the
United States under the same kind of
political control which has crippled
the railways and which would soonJ
ruin any industry.