The New York herald., 1922-08-16
PRESIDENT TO SEEK
COAL PRICE CONTROL
Hoover Reports His Appeal to
Operators for Fair Rates
Has Failed.
PR0FITEERING STARTED
Cabinet Decides Legislation Is
Needed if Consumer Is to
Be Protected.
PR0FITEERING STARTED
Special Dispatch 70 TUE NEW Yons HERALD.
New York Herald Bureau,


New York Herald Bureau,
washington. ID. c.. Aug. 10.
Congress will be asked to enact leg
islation giving the Government au-
thority 70 regulate coal prices The
President and his Cabinet are said to
have decided that such legislation is
necessary to protect the consumer
against coal price profiteering. The
Governments voluntary fair coal price
plan has failed To check ascending
prices.
The form Of the legislation has not
been determined. Various plans are
under consideration, however, and
early agreement upon legislation
which the President may submit to
Congress is expected in official circles
The President has been informed by
his advisers on the coal situation that
coal shortage this winter Is probable.
This applies to anthracite as wei as 20
bituminous coal. Reserve stocks Of both
kinds Of fuel are low, and reports in
dlcate that ever after normal pro luction
Is resumed the output will be insufficient
70 meet the demands Of the public
Fair Price Plan Fails.
Secretary of Commerce Hoover, The
Presidents chief adviser on the coal
problem. reported to-day that the coal
operators have broken completely away
from the Governments fair price plan
ana arc exacting excessive prices The
QN. ms for bituminous vary in .he
dh tields, but in all of taem except
lae sRokeless coal fields of West Vlr-
ices are increasing at Il steady
reys made by the Geological
Ow that within three weeks the
Will have depleted its, reserve
As Of bituminous coal and this is
expected to give the operators an excuse
to charge still higher prices.
Atssthe Department of Justice il was
said that the President would not have
TO ask Congress for authority - control
distribution of coal. Distribution viii
be regulated through the p.iofi.y orders
of the Interstate Commerce Commission.
The commissions powers under the
transportation act are believed 20 be suf-
flciently broad TO give the Government
all the authority IL requires TO govern
coal movements. The commission
through its methods of allocatinS coal
cars can cooperate with other Govern
ment agencies which may in the fu-
ture be designated by Congress to exer--
else control over prices.
1t Is expected that in the proposed
legislation to prevent profiteering, the
powers of the Commerce Department
may be enlarged. This Is one of the
plans now being considered. Secre-
tary Hoover said to-day that he was
not prepared to discuss details Of the
suggested legislation
Daugherty Consulted.
Attorney General Daugherty has been
consulted by the President and Secre-
tary Hoover. He said to-day that the
coal crisis Is bound to develop a method
to shield the consumer from profteering.
This and other phases of the coal situ.
alton to-day were discussed at con-
ference between Senator Pepper of
Pennsylvania, and the Attorney General.
Senator Pepper. accompanied by Gov.
Sproul previously had called at the
White House and discussed the coa'
situation with the President.
Government coal experts said to-day
that the coal requirements of the coun-
try are increasing, and that industrial
demands particularly can not be full
filled this winter, even If production is re-
sumed Immediately in the bituminous
fields. Industrial operations in the
Northwest and I'm New England may b.
affected by the long tieup in the mines.
The non-union mines have been produc-
ing scarcely more than one-third of the
country's needs, the reports showed. Im-
port coal IS q negligible factor in the
situation. as the flow of coal that can
be shipped from England would be reia-
lively small. Experts have figured that
even when the bitumlnous fields get go.
ing again at full capacity tine output
cannot greatly exceed 100000 tons a
week. This is said to be wholly made
quate. for the reserve stocks OF rail-
roads and public utilities are low. and
the Bins OF other large industrial enter
prises are about exhausted.