Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-06-02
MAXIMUM PRICE ]
Of $3.50 A TON
FIXED FOR COAL
This Figure Will Apply at
80 Per Cent Of the Pres
ent Producing Fields Dur
ing Present Strike.

Washington, June 1.-Establlsh-
ment OF maximum price Of $3.50
a ton for coal at the mines in so
per cent of the present production
fields for the duration OF the strike
was announced tonight by scere-
tary Hoover. He. regretted he
added, that a sf1isll minority OF the
operators. representing western
Kentucky, had refused to cooper
ate and are demanding higher
prices.
Protection for Consumers.
Consumers can insure them
selves a square deal under the es-
tablished prices by checking
freight rates with the maximum
price, Mr.. Hoover said, determine
whether they are buying contract
coal and make proper allowances
for cost of retail distribution. The
maximum price, he explained, ap-
piled solely to spot coal and con-
sumers not treated fairly may ap-
peal TO the commerce department
with assurance that inquiry into
their cases will be instituted.
Mr.. Hoover announced he has
been advised that operators of Vir-
ginia, West Virginia, Tennessee
and eastern Kentucky would ac-
cept the maximum of $3.50 a ton
while Alabama operators will ac-
cept the rate of % cents a tor be-
low the Garfield scale in that dis
trict.
Demand $4.25 n Ton.
Western Kentucky operators he
continued, are demanding $4.25 n
ton, but he did not feel justified in
advising TIE public to accept that
price level, although he said pro-
duction costs were higher in that
district than in other fields.
Conferences with Pennsylvania
operators are expected to be held
next week. 1T should be under
stood" Mr.. Hoover said, "that the
whole object Of the administra-
TONS interest in coal prices is to
protect the consumer by indicating
the maximum price that would be
fair for spot coal during the tenn
y
doing so to protect that great
group of operators who do not
wish to take advantage of the pres
ent situation.
"Out Of the 100000 tons OF
weekly production of bituminous
coal probably 3,500,000 tons are
under long term contracts to con-
sumers at prices stipulated in the
contracts and there can be no al
teration OF these contract prices,
which as a rule run considerably
below prices for spot coal as they
representa- a steady business TO the
mines.
Figure VIII Protect Public.
THE maximum price for spot
coal is not the minimum price. II
is only q general figure that will
protect the public from such occa-
sions as the last pinch when spot
coal In many places went over $40
per ton.
In arriving at the figures, the
Garfield scales were taken as a
basis and these scales were the re-
suit of close investigation during
the war and allowances have been
made for increased costs and a
general average of the situation
taken that would protect the pub
lie and maintain production. In
these circumstances some minor
proportion OF the mines will make
considerable profits: some minor
proportion OF them will under
these circumstances earn nothing
and in some cases OF low cost pro-
ducing mines the operators already
have notified their consumers that
they will continue to supply then,
at lower rates than the minimum
What we are endeavoring to pre-
vent Is a panic In prices such as
took place at the last pinch"