Evening star., 1950-02-26
Coal Crisis Imposes
Growing Hardships on
Business, Industry
By 6. A. Phillips
A.,eeia,sd Press Business wri,sr

BY q. A. Phillips
Associated Press Business writsr
NEW YORK. Feb. 25.-A de-
moralizing coal shortage stalked
the Nation this week. It imposed
hardships on millions of tndivid-
uals and crippled business and
industry.
At the end of the week no re-
liable evidence was at hand to
indicate how long the struggle
between the United Mine Workers
and the coal operators would con-
tinue.
But it was clear that unless coal
moved in the near future there
would be an immeasurable In
crease in industrial paralysis.
economic stagnation and human
hardship.
Hardly any segment of business
escaped the consequences of the
strike.
Retail Trade Curbed.
Retail trade was hurt by ex-
tensive brownouts and curtailed
hours Of shopping in numerous
cities. The populous and heavy
coal consuming state of New York
was among the places where dras.
tic rationing was in effect.
Railroads were hit a second
body blow by the coal strike. AL
ready they had been forced to cut
passenger train schedules by Is
per cent on two separate occasions.
This week they faced growing
troubles in keeping those now in
operation on time due to the poor
quality of coal firemen had to
work with.
Railroads have the authority
to conf1scate any coal moving on
lines or within their reach else
where, but they have been reluc-
tant to adopt such stringent
measures because Of the hardship
1t might entail on the ultimate
consignee.
| Jobless at New Postwar Peak.
Unemployment zoomed to the
highest level since prewar days
as a direct result Of the various
strikes in force this week and the
joblessness caused indirectly by
strikes. While no actual count
was possible. the total Of those out
Of work probably exceeded 5,000,-
900. or nearly 10 per cent of the
total working force.
The booming steel industry
apparently lost it's gamble that
the strike would be settled before
coal stocks reached a critical
stage. All through recent weeks
when many other lines OF business
cut sail before allowing fuel stocks
to get too low, steel plants went
right along at the fastest clip
weather and other factors would
permit.
The demand for finished steel
remained heavy, 1t was reasoned,
50 why not keep mills turning it
out as long as there was any coal
around? It was a bracing tonic
as long as it lasted but appears
destined to have a bitter after.
math.
Unless the coal situation
changes quickly, this will be the
last week OF high activity In the
steel mills for some time. The
authoritative weekly Iron Age"
said coal stocks were so low that
some mills would cut blast furnace
operations by Is per cent.
II the boom is really lowered
on the industry next week when
it begins to count up its coal as
sets, the operating rate is ex-
pected to hit the skids in earnest
and probably sink to q 20 or 50
per cent level before finding any
thing solid to support 1t.
Auto Plants Still Busy.
Automobile output continued to
hold up remarkably well despite
the Chrysler strike and the ma
tural tendency of plant managers
to hoard scarce steel and other
supplies. This weeks assemblies
In this country and Canada total
ed 126,737 units against 1912
last week and 1885 a year ago.
Like the steel industry, how
ever, motor car makers know full
well that sooner or later they are
to be tagged by the coal shortage,
and all signs point to . lower
scale Of work next week.
Carloadings suffered another
sinking spell. There was precious
little coal to load and . smaller
amount Of other freight piled up
on station platforms over the
country. A total Of 560,116 cars
were handled against 568,841 In
the preceding period and 697, 1885
year ago.