Evening star., 1933-06-18

many other industries today. ironically
a kind of perverted socialism. 1t Is
operated, in reality, for the benefit
of only labor and consumer.
These conditions grew out of basic
factors in the industry that have crys-
talized in the last decade.
Shortly after the close Of the war
the demand for coal began to decrease
due to .,le increasing use of oil, gas
and water power, and the increased
efficiency of fuel-converting equipment
In spite of this increase in demand
which was reflected in constantly fall
ing prices. the effort to produce coal
was everywhere increased. The balance
between production and consumption
was destroyed and. as a result, the
American soft coal industry as whole
is in a desperate condition.
Coal is actually selling below the
cost of production. Most of the op-
orators are bankrupt, or nearly so
There is practically no return to the
investor, little for the Government, and
not a living wage for the miners in
of the coal industry. which in the past
has amounted to millions of dollars
annually. has been virtually lost to the
other industries of the Nation. Such
a perversion of the real aims of indus
try cannot happen if the national in
dustry recovery act fulfllls the hopes
and expectations of its sponsors.
Oil furnishes another example. Oil
men say: The demand for oil has
fallen off during the last two years
But the facts are that more new oil
wells were completed during this pc
riod than in any other similar one
This in itself is enough to drag prices
below the living level for the greater
part of the industry. But oil possesses
a popularity that makes it an especial
sufferer at the hands of unScrupulous
producers. An oil pool is a continuous
reservoir which can be drained through
any single well. Hence, If your neigh
Dor pumps, you must pump. too. or
lose your oil. Thus, with unrestricted
competition, single operator can keep
busy all the other operators in a
given pool. whether they want to cur
tail production or not"
These and scores of other blunders
in the guidance of our industrial prog
resS, combined with perfectly natural
business depression, have brought us
very close to a condition of national
and individual bankruptcy.
But with the passage Of the national
industrial recovery measure the era of
uncontrolled competitive warfare has
ended and an era of cooperative plan
ming has begun. We shall no longer
trust solely to unrestrained economic
forces and individual selfishness, but
shall try to solve them by framing
definite plans and by taking effective
steps to carry outs these plans.
Planned as individuals.
The measure sets up Federal au-
thority with wide powers vested in the
President, the chief purpose of which
is to aid and encourage industries to
form plans for their own regulation
and progress, and to see that the pro-
visions of these approved plans are car
ried out 1t can also, when it appears
enforce plans on industries that fail
to plan for themselves. A limitation
upon the operation of the antitrust
laws is included so as to permit fair
combinations of industry which prom
Use economies to both producer and
consumer.
Such legislation may seem to threaten
the very foundations of our traditions,
but actually it carries no such menace.
We have always been a Nation Of
planners We have utilized our plan
ming ability TO form enterprises greater
than any the world has ever known.
and we have prospered in proportion to
our creative efforts, But we have fallen
short because we have planned as in
dividualists for our own benefit; we have
not planned on broad, national scale,
with the interest of all as our goal.
However. the type Of national plan
ming to meet demanding objective Is
not new to us. An emergency requir-
ing planning OF unparalleled character
was thrust upon the country when we
entered the World War We met it.
The Council of National Security and
the Industrial Commission were set up
in relation to the industry Of the United
States. The authority established un-
der the law functioned through the War
Industries Board. the Fuel Administra-
ton and the Food Administration.
The objective then was the quick
development of the machinery for war
fare and the release of man-poWer for
war requirements. For example. the
Production Committee of the Fuel Ad-
ministration undertook to build up
quickly the production Of coal to meet
the needs and at the same time to