The New York herald., 1922-08-28
SEE INDUSTRIAL CRISIS
Other Big Concerns Feel the
Pinch and Electric Power
May Cease.
GOVERNOR TAKES A HAND
Will Prevent Profiteering and
Insist on the Elimination
Of All Red Tape.

Special Dispatch to THE NEW YoxK HERALD.
DETROIT. Aug. 27.-The announce
ment by Henry Ford that inability to
obtain coal in sufficient quantities. to-
gether with the high cost OF steel,
will compel him to close his several
plants on Saturday. September Is, for
an indefinite period Is looked upon as
the real beginning of an industrial
crisis.
Although none other OF the large
industries Of Detroit or Michigan has
issued any formal announcement. 1t Is
well known that they all are begin
ming to feel the pinch, and state
ments that other concerns may soon
follow the decision, OF Mr.. Ford will
cause no surprise. Mr Ford would
not buy coal now If he could at the
present high price.
Coal shipments into Detroit in the
twenty-four hour period ending Satur-
day noon were 355 cars. about two
thirds of the city's entire needs for
immediate consumption. This was the
largest coal shipment into Detroit for
nearly two weeks. Only two priority
concerns have been granted coal by
the Federal Fuel Distributor. They
are the Detroit Edison Company and
the Detroit Reduction Company. which
cispoees of the city's garbage and
refuse.
Alex Dow. president and general man
ager OF the Detroit Edison Company.
has issued a warning that his company
may soon be compelled 20 refuse elec-
trio power TO all on-essential industries.
and possibly some industries classified
as essential.
John Lovett. secretary and manager
citation. declared further curtailment of
industries throughout the State inevi-
table. William Potter, State Fuel Ad-
ministrator. said the board has awarded
to all essential Michigan Industries bare
ly enough coal to operate only the gas
and electric plants under ordinary con-
ditions.
Plans for RatfoninG.
AT a meeting Monday OF 1s1 Detroit
dealers, which will be attended by Gov.
Groesbeck. plans will be formed for ra-
tioning coal to all Detroit consumers.
Figures show that coal now In the hands
OF Detroit retailers is less than 7 per
cent. Of the normal supply in yards at
this time of the year. No consumer, in
Guiding house dealers. will be permitted
to possess more than a thirty day sup
ply. according to a statement by Gov.
Groesbeck.
II hope and believe that / can prevail
upon the coal dealers OF Michigan TO
keep the price OF domestic coal at fair
figure, but as have said before. the
State administration does not Intend to
tolerate profteering." said he.
Gov. Groesbeck said he believed II
will be far easier for the State to pre-
vent pronteering in coal IL the Federal
Fuel Administration at Washington re-
iinquishes control Of the fuel situation
Monday as intimated In dispatch sent
by Henry B. Spencer. Federal Fuel Ad-
ministrator, to State Federal Admins
traitor Potter. Heads Of automotive In
dustries do not expect to be forced 10
shut down their huge plants in the near
future. Some of the largest Industries
have sufficient fuel on hand and In tran
sit to assure operation for from thirty
days to three months. They believe
their supplies will be replsnished at least
in part before they are forced to close.
Howard r. Coffin. vice-president OF
the Hudson Motor Car Company, said
that the Hudson plant has a reason
able" supply OF coal on hand. and Is not
In Immediate danger OF shutting down
but he would not venture to forecast the
probable situation two weeks hence.
BaYs Profiteerfng.
In n statement by Gov. Groesbeck this
afternoon announcement was made that
II the control OF coal In turned back to
the individual States Monday, Michigan
will attempt to regulate prices only.
mo profitcering in coal, elimination
OF all red tape and restrictions, use OF
regular channels of business OF distri-
button OF coal for Michigan. will be the
program" said the Governor. "A price
OF So to IS at the mines is an outrage.
shall use all my official power to see
that consumers get coal at reasonable
prices."
A priority order for 10000 tons OF coal
for the Detroit Edison Company has
been approved in Washington. That
company is getting less than half their
regular supply now. and reserve stock
is rapidly declining. This company fur
nishes power to great many Detroit
industries. slso to the tunnel locomo-
tives OF the Michigan Central Railroad.
From Henry Ford to-day came the
statement that he would not buy Coal at
present even II he could get IL because
the price Is too high. He again charged
railroads and mine operators with col
lusion TO keep up the price. Seven to
nine dollars per ton Mt the mines, said
Ford, is gouging and extreme prof
lteering.
There is no use trying TO belk rail-
roads and mine operators said he.
They are In agreement to keep the
price up. am tired OF trying 20 do
business with them. They have baked
the public at every turn. They have
compelled me 10 lay on indefinitely, with
winter not far away, about 10000 work