Milford chronicle., 1947-08-08
THE QUAINT THEORY that it is possible

THE QUAINT THEORY that it is possible
IN continually raise wages without raising
prices was disproved long ago. Now the puo-
lie is witnessing still another demonstration
of the fact that wages and prices move to-
gether.
The current case is coal. AS the wall
Street Journal said, "The American puDhc
will soon be chipping in to finance the latest
nav hike which John L. Lewis wrapped up Tor
his soft coal miners" The probable average
increase. once the situation stabilizes, will be
about IS cents ton. That, along with some
other factors, is expected to raise the price OF
steel by SIS a ton. And when steel prices rise,
it is felt throughout all basic industry. The
price tags on thousands of articles will be
increased
The desire of workers to earn more money
is perfectly natural. But, In the long run, the
welfare of industry is what will determine Joo
security and workers annual income. Ii, as
an example, higher coal prices force consum-
ers to substitute other fuels, the ultimate re-
suit will be a shrinking market for coal and
fewer jobs for the miners. Again, if a wave
of price increases brings on consumer resist
ance and a general decline in buying, the Ill
effects will be felt throughout the country
at the expense OF all.
There is but one way wages can be per-
manently increased without prices being in
creased-and that is by higher output per
worker to hold down cost OF production. In
the last two years, worker productivity IN
many fields has actually declined while wages
have scared. The inevitable result has been
price initiation and cheapened dollar. The
present coal situation simply indicates that
still more price imitation is on the way.
70 AAsaA. @SSoGG ~ aseas- Sas..,
IN THE LONG RUN, the constant labor
duction in the coal industry may be solved
by coal consumers, industrial and domestic.
It may be possible for the miners union
to jack up coal wages-which represent the
bulk of the cost of producing coal-to any
level they desire But it will not be possible
for the union or anyone else to force con-
sumers to buy coal at artifcially high prices
if some other fuel can be substituted at a
saving.
Coal must be marketed in growing COM
petition with other fuels, such as oil, gas,
and, in time, atomic power. These competi-
tive fuels have already made inroads into
markets which were once held exclusively
by the coal industry. How coal will fare in
maintaining its competitive position in the
future will depend primarily on it's cost to
the user.
Before the recent wage negotiations be-
gan, the coal miners had the highest earning
power of workers IN any comparable indus
try. They have achieved many other costly
benefits, such as the welfare fund. Employ
ment - when the industry hasn't been shut
down by strikes or extended holidays
was held to very high levels. Now the min.
ers have won still another substantial wage
adyance-wnich will be reflected in the mar
ket price of coal. 1t remains to be seen whe
Their the union will work to increase the pro
ductivity of mine labor, will honestly coop
crate with the operators to maintain peace
within the industry, and will do what else
it can to save GOALS markets and so prOtec
the jobs of its members.
5000
THERE is CONSIDERABLE misconcep
tion concerning the oil situation.
In certain sections of the country, notably
the Middle West, supplies of both crude oil
and oil products are Highland are likely t,
remain so for IL to 18 months. The reason
for that is simpless 1t is solely because shor
supplies have made it impossible for the in
dustry to drill enough new wells, to provid
the transportation, and to construct all tn
new facilities needed to handle record de
mands for oil in all its forms.
Consumption of oil has hit unprecedente
levels. Today the American oil industry
producing more than 100000 barrels O
crude each day-a rate higher than at tn
peak Of the war effort, and 80 per cent NOR
than in 1941. That is an astonishing pei
Torrance, in the light of the postwar short
ages and scarcities of materials. But eve
that output is insufficient.
So far as reserves of oil are concerned tn
industry is expanding them Is rapidly as pos
sible. 1t is getting more disable products on
of each barrel of crude than ever before.
is experimenting to find new sources of OF
such as the underwater salt domes off tn
Gulf Coast Concurrently, it is carrying Q
an enormous development program abroad |
make available the untouched oil resource
of the Middle East and other regions
1t is forecast that by 1851 American col
sumption of oil will reach 100000 barrels
day.