The Washington herald., 1922-06-09
u. S. MAY SEIZE
And run. MINES,
SENATORS WARN
Coal Supply for Winter
Must Be Assured,
They Declare.
.LAUD MR. HOOVER
Secretary Defines Stand in
Correspondence With Re-
tail Coal Leader.
LAUD MR. HOOVER
Continued from PAGE One.


Senator Sutherland stated that in
the end the consumers will be the
gamers because of Secretary
Hoover's action with respect to coal
prices. The result Of governmental
operation of the coal mines, he ar
gued.. would mean inevitably an in
crease in the prices Of coal.
Calder Favors Operation.
Senator Calder disagreed with him
and said municipal operation OF wa
ter plants had not meant increased
cost 10 the public, whereupon sena-
tor Sutherland pointed to govern
mental operation of the railroads
as an example of increased cost.
Senator Norris said that while
he did not want to see government
al operation of the coal mines he
would vote for a proposition to
have the government take possess
sion rather than permit people to
freeze.
Senator Walsh said he believed
Secretary Hoover had been de-
ceived in embarking on his price,
control program. and that he should
| take steps to rectify the situation.
He stated that the announcement
of prices had resulted in increases.
as contended by the retailers. and
he urged a complete investigation
Of the coal situation by the Senate
Committee on Education and Labor.
Believes Prices Checked.
Secretary Hoover, through his
moral agreements" with operators
and wholesalers. Is satisfied the
runaway market has stopped.
so far the public has been pro-
tected from a repetition OF l920,'
Mr.. Hoover declared. Prices have
receded from those reached on May
Is. except for a small percentage OF
| the total producers who refuse TO
cooperate.
Some Of the Senators have been
misinformed by misleading state
| ments from a small group of retail
dealers who object strenuously to
any attept to restrain prices. They
have addressed the same figures to
me. to which l have replied"
secy. Hoover Writes Retailer.
Although Mr.. Hoover is under
stood to have no intention of an
swering attacks in the Senate, new
ertheless. II was said, a letter of
his to President Homer D. Jones, of
the Retail Coal Merchants Associa-
tion OF Chicago, may be Interpreted
as his view of the situation to date:
Your letter gives the impression
that the householder should be in
| formed by me that retailers are
warranted in advancing the price
of coal by sl.75 a ton" Mr.. Hoover
| wrote, ''as the result of negotia-
tions by the administration with
| the operators. and in support of
this you make certain statements
to which l cannot agree.
You give the impression that
| spot smokeless coal for household
| purposes was selling at sl.75 prior
| to the strike and that at 81. so maxi
mum for run of mine the house
| holder is burdened with an advance
| OF s1.75.
Figures Verify Action.
From the quotations you append
to your letter the price OF run OF
mine and slack (steam coals) prior
| to the strike was $1.75 to So, but
| from the very quotations you give
me it is evident that for lump
| (Which is the householders' main
| interest) the prices prior to the
strike were SO to s3.25, and not s1.75.
as might be inferred. In other
| words. you have ignored the great
decrease of differential in favor of
the householder that has been sug-
gested by me to the operators.
1T does seem to me that the re-
tail coal dealers could play a fine
| part in this emergency II they
would follow this suggestion: That
! all coal be sold at cost plus a rea-
| sonable Handling charge, the cheap
| pre-strike and contract coal to be
| reserved for the smaller household
| trade. and steam and larger domes-
/ tic consumers to be supplied from
| current purchase plus a reasonable
handling charge. Also, that the re-
! tailers cooperate to prevent rising
mine prices, for some districts are
refusing to accept the formula l
have outlined and are asking IS
ton. Finally, that the retailers han
die coal on straight lines from op-
| orator and wholesaler without spec
| ulative resales in the trade.
by such cooperation ! feel sure
we can save the public from rum
| away prices. such as we witnessed
in 1920; thus saving to them several
dollars per toh-of more interest
than questions of 25 cents or so
cents" ''
Mr.. Hoover also pointed out in the
letter that Jones' declaration of his
associations opposition "in prin-
ciple and as a matter of sound busi-
ness to government policy, official
or unofficial," Is evidence that the
association does not wish to CO.
operate in the prevention of prof
iteering in this time of emergency"