The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-06-14
PUBLIC FAITH
is HOOvER'S
ONLY BACKING
Lacks Legal Authority to
Keep Limit on Soft Coal
Prices Operators Could
Laugh at Him.
NO SIGN YET OF END
BY MARK SULLIVAN


WASHINGTON, June 14-Whether
Mr.. Hoover's plan to keep the price of
coal somewhere within reason during
the strike is to be completely success
full is now in the balance. Mr.. Hoover
has no legal authority for his effort
1t rests wholly on his energy and on
the moral force of his position.
When the strike began there was
the usual cry for protection to the
innocent third party: namely, the pub
lie. The federal government, however,
had no authority to intervene and any
authority that might now be given by
congress would necessarily be of such
nature that it would. involve court
proceedings and delays so long that 1t
could do no present good.
In this emergency Mr. Hoover un-
dertook to bring the coal operators IN
to voluntary agreement not to let
prices go above approximately the
standard arrived at during the govern
ment control Of the mines while the
war was on. That Mr.. Hoover should
have had any success at all is due
chiefly to the backing of public opin-
lon which attends any position taken
by him, and to the rather extraordin-
ary goodwill of the operators.
Could Have Laughed
The operators could have laughed at
Mr.. Hoover, and in doing so could
have been we'll within their legal
rights. They could have said to him,
in effect: when the conditions are
reversed and the supply of coal ex-
ceeds the demand, if we should then
enter into an agreement to keep the
price OF coal up, we would be liable to
prosecution under the Sherman Act
But now when the demand for coal ex-
ceeds the supply, and when we have
an entirely legal right to take advant-
age of the situation, you ask US to en-
ter into voluntary agreement to keep
the price of coal down"
However, in all but a few of the
districts the operators assented The
consequent saving to the coal consum-
ing public is enormous. During the
strike of two years ago, when the
pinch came, the price of coal went to
s12 and SIS a ton, which is three or
four times the figure Mr.. Hoover is
now enforcing. And in the strike Of
some II years ago, the price went to
something like $40 ton before Presi-
dent Roosevelt took cognizance of
conditions and did the only thing with
in his power, namely, the not very
Immediately effective step of appoint
ing a commission.
The impediments that have been
put in the way of Mr. Hoover's plan
ard the criticism directed at it have
not come from the coal consuming
public. The buyers of coal know we'll
how much Mr.. Hoover's action has
done for them. But among both the
operators and the striking miners
there are groups whose strategy would
be aided in both directions by the
kind of runaway rise in the price of
coal.
Sources camoufIaged
Many of the striking miners would
be aided through public pressure to
end the strike arising out of public
indignation over an excessive price
for coal. On the other hand, many OF
the operators who sell what is known
as spot" coal would obviously be
benefited by higher prices. 1t is from
these sources, cautiously camouflaged
that most of the criticism of Mr.
Hoover's action proceeds.
There is no sign of any develop
ment from which it would be possible
to predict an early termination of the
strike. The production of coal is
about so per cent of normal, and II
the situations continue there must be
scarcity such as will result in very
high prices unless Mr. Hoover's plar
continues to be supported by a suffi
cient amount of public opinion to keep
it effective. This backing and thu
moral force of his position constitute
the only authority he has-(C Copy
right, 1922. by the New York Evening
Post Inc1