The Birmingham age-herald., 1922-06-02
MAXIMUM PRICE
 FOR COAL FIXED
 BY J. 5. OFFICIAL
Majority of Operators Agree to Abide by Decision of Sec retary Hoover-kentucky
 Owners Object
Rr Associated Pres.

Washington, June 1.-Establish- ment of maximum price of $3.50 8 ton for coal at the mines in 80 per cent of the present production fields for the duration of the strike was announced tonight by Secretary Hoover, He regretted, he added, that small minority of the operators representing western Kentucky had refused to cooperate and are de- manding higher prices.
 Consumers can insure themselves of a square deal under the established prices by checking freight rates with the maximum price, Mir. Hoover said, contract coal and make proper allow ances for cost of retail distribution. The maximum price, he explained, applies solely to spot coal. and con- sumers who are not treated fairly. may appeal to the commerce depart ment with the assurance that Inquiry into their cases will be instituted.
 Mir. Hoover announced he had been advised that the operators of Virginia. West Virginia, Tennessee and east ern Kentucky would accept the maxi mum of s3.5o a ton while Alabama operators will accept the rate of 2Sc ton below the Garfield scale in l that district.
 Demand Higher Price
 Wesfern kantueLy 0nerat0ra hA continued. are demanding s4.25 a ton but he did not feel justified in ad : vising the public to accept the price level, although he said production costs were higher in that district than In other fields. Conferences with Pennsylvania operators are ex- pected to be held next week. HIt should be understood" Mir. Hoover said, "that the whole object of tho administrations interest in coal prices Is to protect the consumer by indicating the maximum price that would be fair for spot coal during the temporary period of the strike, and by doing so to protect that great group of operators who do not wish to take advantage of the present situation.
 out of the 5,0oo,ooo tons of weekly production of bituminous coal, probably 3,500.00o tons are under long term contracts to consumers at prices stipulated In the contracts. and there can be no alteration of these contract prices which, as a rule. run considerably below prices for spot coal, as they represent a steady business to the mines. Many dealers enjoy long time contracts at lower rates than the maximum fair price suggested for soft coal, and 1t would be only fair to the public that. In the resale of this contract coal, these dealers would give the consumer the fuli benefit of their lower prices; and l feel sure from my discussions with them that the majority will do so
 Maximum Price
 The maximum price for spot coal Is not the minimum price. It is only general figure that will protect the public from such occasions as the last pinch, when spot coal in many places went to over $10 per ton. In arriving at the figures, the Garfield scales were taken as a basis, as these scales were the result of close in- vestigation during the war. and al ioWahces have been made for in- creased costs and a general averase of the situation taken thar would protect the public and maintain pro- duction
 Tn these circumstances some minor proportion of the mines will make considerable profits. somo minor pro- portions of them will, under these circumstances. earn nothing; and in some cases of low cost producing mines, the operators have already no.iiled their consumers that they VII continue to supply them at lower rates than the maximum. What we endeavnrfn~
 in prices such as took place at tb. last coal pinch"