Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1922-06-09
HOOVER UPH0LDS
HIS COAL PACT
Secretary of Commerce Replies
to Senate Resolution.
TO HALT SHARP INCREASES
Admits Agreement With Operators
Has No Force in Law--Are Only
Moral Understandings - lg-
nores Retailers Protest.

Washington, June 8.-Belief that
the price-fxing agreement entered
into with soft coal operators will pre-
vent sharp increases in price was ex-
pressed by Secretary of Commerce
Hoover in a statement sent to the
senate. The statement was in reply
TO the resolution Of inquiry adopted
at the suggestion of Senator Walsh
of Massachusetts.
Secretary Hoover defended his ae-
ton in making the arrangement with
the operators. stating at the same
time that while it could have no force
in law, it was hoped that the state
ment Of the opinion Of the administra-
ton as to what constitutes a fair price
will operate to keep coal prices from
rising. He said:
ANY collective agreements or any
erection of committees In the trades
for enforcement might be criticized as
a violation of the law even if it might
result in benefit to the public. There
fore the entire part of the administra-
ton is confined to a statement of
opinion of what is fair with the hope
that it may be adhered to by each in
dividual. The result so far has been
to halt the rise and to secure consid-
cradle reductions in certain cases"
Ignores Retailers Protest.
Secretary Hoover ignored the pro-
tests filed with Senator Walsh and
Senator Borah, chairman of the edu
cation and labor committee, by re-
tailers to the effect that Hoover's ac-
ton in fixing the maximum price at
$3.50 per ton has resulted in that be-
coming the minimum price, and that
retailers. who have been buying coal
at the mine at $17j are now obliged
to pay $3.50 as n result Of the price
fixing agreement He justified the fix
ing of prices, saying:
at was deemed necessary to use
the influence of the administration to
halt the prices and if possible prevent
q repetition Of the price panic of 1920
when spot mine prices rose to as high
as SO per ton. AS a result of the ac-
tivties undertaken, the price has halt
ed and has even receded in some dis
tricts, ia various amounts from 80
cents to So per ton.
"As to what the course of prices
may be. I am unable to state l am
In hopes the action taken may save
the public from a repetition of such
protiteering as developed on previous
occasions"
In response to the inquiry as to
what steps have been taken by the
administration to end the strike Hoov-
er said the government has no author
ity to intervene The only thing done,
he said, has been to suggest to the
miners and operators that conferences
with the Department Of Labor or De
partment of Commerce might bring
about an agreement. Thus far these
suggestions have been without result,
he said
Agreements Only Moral.
The governmental agencies are also
without authority to protect the pub
lie from eXtortionate prices of coal,
Secretary Hoover informed the SEN
ate, but "as tender of good Offices.
of the government. various confer
ences have been held with the consum-
ers, dealers and operators where 1t
was sought TO impress upon them the
necessity for prices that would be fair
in the interest of the public"
Hoover added: mo congratulations
upon profiteering are of any value to
the public. In a shortage the only
effectual action must be a statement
of a fair price for dealing. Any such
price must take into account the main
tenance of production and, therefore.
the costs of the mines, the most ex-
pensive to operate and in making
suggestions l have proposed that the
last Garfield prices for ran of mine
coal should be the basis for c0mput-
ing sales prices, with such adjust.
ments as are necessary to include the
wholesale selling costs. changed con
ditions at the mines and other factors
that will be fair to the public and the
operators, and will maintain produc.
ton OF coal Any agreement 10 this
Is a moral agreement between each