Evening star., 1926-04-02

Continued from First Page.D
agencies the right to withdraw the
suspension whenever II might he
deemed necessary, under the Jacob
st Elm suggestion.
Urges Government Action.
Mr.. Lacobstein said that while he
wax opposed to Government opera lion
Of coal mines and also. at the other
end Of the scale. 10 q do. o.nothing'
policy BY Congress he felt that the
Government might. under his proposal
for suspension Of the antitrust Ii VS.,
bring about such unihcation of the
hard coal industry as to- operate II on
much more efficient basis and have
definite control by the Government
over both production and price.
Mr. Jacobstein was sharply chal-
lenged by committee members as to
whether he would set mp Govern.
ment price fixing agency. He said he
had no such intention. but hoped that
economic law. working on a firm foun.
dation bs sed on nnification In the
hard coal industry. would work ont
schedule OF prices which would be fair
a nd rea asona bic and would not need fix
nE by the Government. He added
however. that some Government con
tro over price, and possibly guara n
tee of profits Ia operators. would he
necessary.
Selling agencies which handle the
output of hard coal mines should he
part and parcel of the unification OF
the industry. he contended Such
unification might involve pooling Of
the industry Ia enable the weaker
mines to keep operating
Laws Prevent UniRcation.
The present laws. Mr.. Jacobstein
said. do not permit unitication in
either the anthracite or bituminouS
industry. The anthracite industry he
described as a closely knit, relatively
efficient industry and the bituminous
industry as a loosely woven fabric OF
mines. many operating at a loss even
when prices are favorable.
MIR. .Jacobstein predicted lower
prices for anthracite coal under his
unfica tion plan. even though prices
at the mine might he higher than at
present. Pooling and control of the
selling agencies and eliminating many
OF the high middelman's profits now
exacted would bring about this re-
suit. he explained.
Anthracite coal, he said. even
though It is becoming more and more
valuable. is losing It's market at
rate Of about 100000 tons year.
Substitutes are rapidly taking its
place. and he foressw the day when
anthracite prices will he down 10 meet
the competition OF oil and bituminous
coal.
Would Close Inefficient Mines.
The Iacobstein plan would put out
vf business as soon az possible those
coal mines which are not now operat
ing efficiently. although he agreed
with Representative Rayburn. Demo.
crat. Of Texas that the natural eco
nomic law Of more efficient opera ton
would in time force the ineficiently
operated mines 70 suspend operation.
II am not afraid OF public regula
ton" Mr.. .Iacobstein said We have
ample precedent for such regula tion
OF natural monopolies In the case of
| railroads and several classes OF public
utilities Hard coal is natural
monopoly. and soft coal is not.
IF Henry Ford or Rockefeller
owned the hard coal industry. 1t would
he operated economically. Under
production or overproduction is wa aste
full. What we want is an adequate
supply OF coal and the American pub
lie is willing TO pay fair price.
Bitun,inOuS Strike Possible.
There is good deal of strike talk
regarding termination OF the union
bituminous contract on March 81.
1927 l am sure the union miners
will not submit 10 a reduction OF %
or % per cent in wages to bring them
down to the 1917 scale when their
contract expires a year hence.
Mr.. Jacobstein said there are two
separate conflicts in prospect in the
soft coal industry, one between the
operators and miners and another he.
tween mine operators in the North
a nd those In the South. where mines
! generally are not operated by union
workers, He said the mine owners
| In the North will fight to shut down
the competing non.un'on mines.
Questioned as to the constitutional l.
Itv OF his proposals 10 cure the Ills
IN the coal.mining industry, Mr..
Jacobstein furnished the committee
with two Supreme Court decisions,
one applvIng to the coal industry and
! another In an analogous industry.
both of which. he said. furnish
| precedent for legislation on coal.
II know there Is going to be
battle on the constitutionality of coal
| iegisla ton" he said. Where practices
! and abuses result In restraint OF In
terstate commerce Congress may step