The daily star-mirror. (Moscow, Idaho) 1911-1939, 1922-08-28
HOOVER SAYS COAL
CONTRL IS NEEDED
IN LETTER TO SENATOR BORAH
SAYS PRESENT AGENCIES
INADEQUATE

1--WE must have something more
than present authority to control dis
tribution (of coaD and to stiffen the
voluntary agencies engaged in the sit
uation, exen assuming that produC'
tion is new resumed is the opinion
of Herbert Hoover, secretary OF the
department of commerce, in a letter
to Senator w. E. Borah, who inquired
regarding the need of legislation In
restraint of exorbitant coal prices.
Copies of the letter were received here
Tuesday.
Continuing, Mr.. Hoover says:
"The situation has now reached q
point where, even if production is re-
sumed, there must be more authority
for the effective control Of distribu-
ton and possibly of prices, pending
readjustment of the situation. 1t Is
difficult to determine at what stage
the initiation Of wide legislative meas
ures, with all their legal and admins
trative difficulty and expense, would
be justified, owing to the unknown
contingency of resumption of produc-
ton. For instance, if the presidents
arbitration proposal had beeu accept
ed and production begun, and had the
rail strike not supervened, prices and
distribution would have quickly read
justed themselves naturally.
Present Authority Inadequate
Gwen assuming production is now
resumed, the almost total exhaustion
of stocks, the limitations upon trans
portation not only as consequence OF
strike, but also with the usual fall
peak in commodity movement, the
necessity to accumulate large supplies
at upper lake ports before transporta-
ton freezes, the necessity to make
forced drive of anthracite into the
hands of householders, have all ac-
cumulated until it seems to me we
must have something more than pres
ent authority to control distribution
and to stiffen the Voluntary agencies
engaged in the situation. Whether
price control will be necessary, and
how far necessary, can only be judged
from day to day.
.'You are aware of the legal. COM
plexities | am advised that the fed
eral authority in the matter outside OF
war does not extend beyond the con-
troll of coal moving in interstate COM
merce, or for the maintenance OF IN
terstate commerce Therefore, any
effective organization for control OF
price must depend upon the state au-
thorities erecting such complement
ary machinery as will protect their
citizens on coal produced and con-
sumed within their own boundaries,
and against undue margins on the re-
sale of COAL whether imported into
the state or produced within it. | am
advised that the federal government
can set up legislation that would pro-
vide for the movement of coal at fair
prices over the boundaries to consum-
ING states. From that point forward
the responsibility must rest with the
state.
Through present arrangements,
he ads, Approximately 20 per cent
of the coal is moving from the mines
today on the fair price basis, but such
an organization cannot be extended
over the entire production with the re-
sumption of mining, and in any event
the agreements with non-union mines
expire with the strike. Moreover,
some of the fair price coal is subse-
uuently used for speculation. 1t is not
fair that those should be allowed TO
run loose who would use their coun-
try's distress as opportunity for prof.
it There are no funds for even the
incidental expenses of the present
distribution. We have all hoped that
the situation would improve and that
these plans would have served to tlde
over. Even yet the legislative powers
might need only partial application.
But I can see no assurance OF ade-
quate public protection or justice to
the decent operator and distributor,
without a definite agency of author
ity as the situation stands today. The
substantial and public spirited coal
operators themselves feel that their
only protection from unjust criticism
lies in some workable method that
will compel a minority to righteous
business practices