Evening star., 1950-03-05
Coal Settlement Ends
Spreading Paralysis;
Hiqher Costs Seen
By G. A. Phillips
Associated Press Business Writer

NEW YORK, March 4.-Settle-
ment of the coal strike halted one
Of business and industrys steepest
declines in history.
Virtually every kind of business
in the country had been hurt in
one way or another by the month
long strike of some 375,000 United
Mine Workers.
The big question now is how
much damage has been done to
the basic economic structure, how
long it will take to repair it and
at what cost?
Consumers Will Pay.
It is a good bet the agreement
between John L. Lewis and the
coal mine operators is going to
cost you money. whether you use
soft coal or not.
Coal is an essential element in
the cost of almost everything made
in this country. Any increase in
its cost likely will be passed down
to the ultimate consumer.
This is particularly true at
present. Manufacturers and busi-
nessrnen say their cost of doing
business already is too high in
relation to prices they get for
finished products.
That the coal strike and its
ultimate effect on the national
economy was tinged with infla-
ton has been indicated right along
by the stock market. At time
when you would expect prices to
decline in the face of such pro-
longed economic crisis, the very
opposite course was taken more
often than not.
How much influence higher
priced coal will have on the gen.
eral trend of prices remains to be
seen. The fact that it takes 1.3
tons OF coal to make one ton of
finished steel products gives an
idea of the way it could affect pro-
duction costs.
Already talk Is heard in business
circles Of a new round of price
hikes for such commodities as
paint, automobile tires, farm
equipment and even steel. The big
restraining factor, Of course, is
keen competition for the con-
sumer dollar.
The final week Of the great coal
strike of 1850 witnessed a rapid
decline in all kinds of business
operations. but it was particularly
hard on heavy industry.
Steel mills reduced schedules to
the lowest point since the industry
was tied in knots by a. month-long
steel strike last fall.
Hundreds of industrial plants
were forced to cut working sched-
ules or close altogether because OF
the lack Of industrial gas or elec-
trio power made from coal.
Unemployment spread rapidly,
creating strong secondary reac-
ton on retail sales, upsetting all
kinds OF planned activity and
dumping serious problems in the
laps Of city, State and Fede. al
welfare officers.
Power Use Reduced.
Brownouts and dimouts were
extended to more cities and towns
rs the cumulative effects Of the
protracted strike spread. Schools
were closed. Church services were
suspended. In most OF the coal
consuming States emergency
measures were in effect in order
to channel available fuel stocks to
such essential institutions as hos
pitals and public buildings. New
cuts in railroad service caused ad-
ditional inconvenience to the tray
cling public.
Retail trade was better in some
spots this week, worse In others.
Weather conditions and strikes
usually were the deciding factors.
Store economists now are won-
dering whether they will have to
revise optimistic forecasts for a
brisk Easter business because Of
economic conditions, created by
the coal stoppage and other. dis
putes such as the Chrysler strike
and trouble at American Airlines
hangers.
The calendar favors a good sea-
son. Easter Is neither early nor
late this year, falling on April 8,
1c 1~% l..