East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-08-26

written
by Herbert Hoover August 8 Senator Borah 1t is
here given in full because Of the bearing has the coal
situation:
Washington August 49, 1922.
The Honorable William E. Borah, United States Senate
My Dear Senaor:I greatly obliged for your letter of
August 10th nqung to the need for legislation in restraint
of exorbtant prices of coal The president has today
The situation has reached point where produc-
control of distribution possibly prices pending readus
men Of the situation 1t difficult to determine at what stage
and administrative difficulty and expense would be justified
owing the unknown contingency of resumption of production
For instance If the presidents arbitration proposal had been
accepted and production begun and had the rail strike
pevened prices and distribution would have quickly readused
themselves naturally.
Even assuming production resumed the total
exhaustion of stocks the limitations upon transportation not
hy as consequence OF strike but asowth the usual fall peak
IN commodity movement the necessity toaccumuae large
cessy to make forced drive of anthracite Of
householders have all accumulated until it we
buon and to ffen the voluntary agencies engaged in the
necessary, can only be judged from day to day.
you are aware of the legal complexities advised that
the federal authority in the matter outside of does
tend beyond the control of coal moving commerce
or Tor the maintenance of interstate Therefore any
effective organization for control of price depend upon the
clhzens on coal produced and consumed within own
boundaries and against undue margins the
etner imported INTO the state or produced within it. am
ADVISED tha the federal government legislation
would provide for the movement of coal fair prices
boundaries to consuming states From point forward the
responsibility must rest with the state.
fo are aware that this tangled legal position the reason
why undertook May 18th last up voluntary plan
with coal producers for the restraint of prices e-
AT that time prices agreed upon based on the Garfield
scale and ranged from 1920 $375 for coal at the mine
Wherever such voluntary arrangements could made This
became effective operators producing per cent
W e current coal and served to restrain the
the middle OF July despite the fact that minority operators
VINO had refused to
Tor coal After July 18th districts withdrew from
the arrangement and individual operators began to break
away some other districts although majority of the produc
on has held to its undertaking right down present mo-
ment and operators have denied themselves literally nlon
that they could have obtained if were not for their desire m
maintain themselves and their industry public repute en-
close Tor example statement showing the sold under the
1a price IN the smOkeesS fields
coal and from those districts ~ P
The approaching exhaustion of and the rail strike in
the latter part of July started buying panic and became
eaI Tor the Interstate Commerce Commission to establish
prlorleS III iaVor OF public utilities and essential industries
win respect TO movement of the available coal Mr. Spencer
has appointed fuel distributor cooperate in the drn
machinery IN various districts by which holders of
priority orders could be directed those operators who
ted IN protecting the public prices play was effective
y restoring the situation so far
her agreement or where there shortage and tbee
ore preference could be given in choosing the coal operator
1uy rom 1t was not effective however where there were am
Die supplies of ~ ' 'i'-
Parallel with this organization. the governors of the c
mt states were appealed to to up organizations that
would restrain speculation within their boundaries and that
would secure Just distribution of coal as we couId [
hem for of their citizens states have cted %
aying efficiency in the matter but certainly the
estS their shoulders for failure in these papI.r
neose memorandum showing this extension Of
Through these arrangements approximately 20 per en
coal moving from the mines today on the fair r b