The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-17
BY WIN SWEENEY
Times SneciAI Writer

PITTSBURGH, Jan. Tiff Uncle
Sam is going to patrol the coal in
dustry-and it is held that he must
if chaos is to end-he needs
stronger club than the Guffey-Sny-
der act, according to the conclusions
reported by researchers for the Blu
reau of Business Research of the
University of Pittsburgh.
And if some degree of stability is
not attained by the coal industry,
they report, a growing demand for
naturalization will develop.
Price control, the meat of the
Guffey-Snyder act, will not bring
stability to the industry nor does 1T
remedy the results of instability in
the past, the report contends.
Control Held Dubious
zone of the causes of instability
in the coal industry is over develop
ment," the study asserts, made pos
sible by the abundance of the coal
in large scattered areas. There are
no provisions in the Guffey- Snyder
act to restrict the development of
new mines so that the operation of
old mines might not be threatened
by ruinous competition.
"All in all, the control capacity
through provisions of the act seems
highly dubious"
Another element disrupting the
;,,I fV.xr &c fho ~ , in
duction costs. 1t is likely that I'M
der the act differences in produc-
ton costs will be largely reflected
in profits rather than in prices, the
researchers believe.
Vocational Training Urged
A further weakness is seen in the
fact that unionism is counted upon
to- coordinate wage rates among
districts, whereas it is held that
there should be machinery in the
law for that purpose. Further:
'The present oversupply of labor
is scarcely affected by the act, If
demands of the union for a shorter
working week are met and weekly
wages are held high enough to per-
NIT employed miners to earn as
much as they previously did, the
consumer will pay for the over
manning of the industry in the
prices paid for coal, unless he can
escape such result by the use of
substitute fuel.
"A shorter working week is not
q c0lY1fio,3 Of f1n YNrN1N1ny11 IF
employment; rather it is shifting
of the burden. The solution of the
problem of the surplus mining popu-
lation awaits genuine business re-
ccvery.
I'm the meantime, relief must be
given; and vocational training is
needed to fit miners for other jobs
which promise more for the future
than mining"
Need Is National
Worry is foreseen for the coal
commission under the Guffey-
Snyder act in administering the
price fixing features. The study
uses the word appalling" in that
connection.
The. study holds that "the at
tempt to make consumers pay for
the mistakes of the coal industry
and to guarantee coal operators
profits may well be resented by con-
sumers," and adds:
"On the other hand, passage of
this act certainly constitutes EVIL
dence of national need. 1t demon
strates that operators, miners and
the government alike are willing to
try measures widely at variance with |
past practice and tradition"
Other "cures" suggested in some
circles are dismissed.
SeE-Regulation Unlikely
Self regulation? Very unlikely;
and even though the industry
through extensive combinations of
operating units were able to regulate
itself, such regulation would prob
ably not be in the public interest.
State regulation? BY enforcing
adequate standards state stimu-
lates production in competing states.
BY employing discriminatory meas
ures in favor of its own producers, a
state deepens the distress of COM
peting states.
Naturalization may develop but:
with control unified, even
though subject to political machina-
ton, some of the ills of the coal
industry would no doubt disappear;
but the danger that the coal indus
try would be used to substitute IA
voreG groups is SO great that Sc
rious consideration of nationalist
ton as. a solution is at present
scarcely discernible."
Tomorrow-The solution in terms
of strong government control.