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REAL ESTATE
AND
(Copyright. 1917. by The Record and Guide Co.)
NEW YORK, JULY 14, 1917
CAN THE ULTIMATE CONSUMER HOPE TO BENEFIT
BY THE PRESENT COAL AGITATION?
By ISAAC HYMAN, Chairman, Sub-Committee. Real Estate Owners* Associations
THE bituminous or soft coal situation
is changing from day to day. The
anthracite or hard coal is maintaining
its high mark with no sign of coming
the consumer; that the dealers were
endeavoring to create the hysteria by
notifying the consumer of the scarcity
of coal, and of the continuation of this
scarcity. This, so that the high prices
down.
During the past six weeks three or
four bills have been introduced in Con¬
gress relative to the coal situation, all
tending more or less to give the Gov¬
ernment some controlling power. Four
hundred coal operators are watchmg
the outcome of the Government's ac¬
tivity. The Senate Commerce Commit¬
tee has examined a large number^ of
operators from various States. Sen¬
ators Newlands and Pomerene have the
situation well in hand and have already
elicited the fact that there is no scarc-
itv of coal.
'One of the leading coal operators,
asked by Senator Pomerene the cause
for the scarcity of coal, acknowledged
that there is no scarcity of coal. The
trouble, he claimed, is with transporta¬
tion facilities; that the number of cars
available was uncertain and this in turn
made the labor uncertain and conse¬
quently disorganized his mine. Out of
an order for 250 cars, he received only
eight. It was therefore impractical to
mine more than could be shipped. And
this same condition he believed existed
throughout the coal regions. Whenasked
if he knew the reason why he did not
get the full quota of cars, he answered,
he did not. Asked if he made any de¬
mand for the additional cars or made
any complaint to the Interstate Com¬
merce Commission, he again said no.
Asked why, and he answered he didn't
want to stir up trouble for himself.
That he knew that the Interstate Com¬
merce Commission had enough to do
and he didn't want to annoy them any
more than he had to, and besides, he
took it for granted, without ascertain¬
ing to the contrary, that the Commis¬
sion would simply accept his complaint,
but would not afford him any relief.
Asked if he knew that an act had re¬
cently been passed giving the Interstate
Commerce Commission full power to act
in just such an emergency, and that if
he had reported the facts, he would have
obtained all the cars he wanted, he
answered that he made no effort to as¬
certain the powers of the Commission,
nor to report the facts. Still coal oper¬
ators are trying to convince the Govern¬
ment that they are honestly and earnest¬
ly trying to relieve the coal situation.
Under further pressure, this same
operator reluctantly acknowledged that
there has been an increase of 75 to 100
per cent, in the price of coal to the
consumer, and when asked how this in¬
crease was justified answered: "Coal
operators are just as human as anybody
else, and they have taken advantage of
conditions and of the people." And this
is the spirit with which the Govern¬
ment and thc people have to cope and
overcome.
Testimony on behalf of the consumer
showed that no hysteria or unusual de¬
mand existed, that they were not over¬
loading their bins and storing coal to
.last through the winter; that the de¬
mand was not abnormal and that no
more coal was being ordered this sum¬
mer than during any previous summer;
that little coal was being received by
can be maintained and gradually in¬
creased. That as a matter of fact no
coal or very little can be obtained at
the present time in the Citv of New
York.
So thorough was Senator Pomerene
in his investigations and so much dam¬
aging testimony was brought out, that
the coal operators, anticipating the adop¬
tion of drastic adverse legislation, called
a conference and submitted to the Sec¬
retary of War an offer to reduce the
price of coal to $3 a ton at the mine
to the consumer, and $2.50 a ton to the
Government. While this is a consider¬
able reduction from the present pre¬
vailing prices, it is still about 100 per
cent, increase over previous years, and
while the operators claim it would mean
a saving of $180,000,000 to the consum¬
er, it would still yield the operator an
abnormal profit.
Soft Coal Agreement.
A price agreement for soft coal was
then arranged between operators and
Secretary Baker as president of the
Council of National Defense, Secretary
Lane, Governor Fort of the Federal
Trade Commission, and the coal sub¬
committee of the council, which Secre-
tarv Baker subsequently repudiated in a
letter to Director Gifford of the Coun¬
cil of National Defense. In this letter,
he stated that he would make no con¬
tract nor advise that any be made un¬
til the Federal Trade Commission com¬
pletes its investigation and announces a
fair price. "As you are aware." he
writes, "the Federal Trade Commission
has been directed by the President to
ascertain for his information the costs
involved in coal production. I am to
some extent familiar with the progress
made by the Commission. The informa¬
tion I have from that and other sources.
I think justifies me in believing that the
price of $3, suggested or agreed on as
a maximum, is an exorbitant, unjust
and oppressive price."
Position of Government.
As a result of the dispute between
Secretaries Baker of the War Depart¬
ment and Lane of the Department of
the Interior. President Wilson has
stepped into the breach and has decided
that the public, as well as the Govern-
iTient, shall obtain necessary commodi¬
ties, such as coal, etc., at a reasonable
rate, not based upon wartime prices.
To bring this about it may be necessary
to pass special legislation and also reor¬
ganize the Council of National Defense.
Regardless of the adoption of the
price agreement by the operators, some
of the operators still continue to charge
high prices, and it is doubtful if all of
the members would abide by the acts
of the majority.
There is now pending in Congress a
measure authorizing the Federal Trade
Commission, upon direction of the Presi¬
dent, to fix orices of coal and other life's
necessaries introduced by Senator Borah,
of Idaho, as an amendment to the food
control bill, and a joint Senate Resolu¬
tion, introduced by Senator Pomerene,
providing among other things as fol¬
lows :
"That the President of the United
States shall be authorized and em¬
powered whenever and wherever,
in his judgment, it shall be neces¬
sary to fix the prices of coal, whether
sold at the mine or elsewhere, and
whether sold by the coal-mine oper¬
ator or dealer in coal, and to reg¬
ulate the methods of sale, routes
of transportation, and the distri¬
bution, apportionment, or storage of
such coal among merchants, domes¬
tic consumers, industrial consumers,
common carirers. and others, and of
export; and said authority and pow¬
er may be exercised by him in each
case directly or through the agency
of the Federal Trade Commission
or such other agency as seems to
him fitting for the period of the war
and one year thereafter, or for such
part or said time as in his judg¬
ment may be necessary."
The resolution is broad and in con¬
junction with the power already vested
in the Interstate Commerce Commission
would insure the distribution of coal to
the consumer at a fair and reasonable
price. The situation has grown intense
and public sentiment demands action.
While Secretary Lane in an address to
the operators paid a high tribute to the
motives which had prompted the action
to voluntarily reduce the price of coal,
and poured encomiums upon their heads
and called them patriots and high-
minded, etc., and while the apparent
generosity and patriotism is to be lauded,
nevertheless there is so very little altru¬
ism among these hard-headed, practical
men, it is not at all strange that the
average person doubts their sincerity
and looks upon their offers and abject
submission with some suspicion. It is
indeed dift'icult to conceive a "coal
baron" deliberately making any sacri¬
fices, and it strikes one that these of¬
fers are made as a preservative and de¬
fensive measure rather than free from
any ulterior motive.
While all these offers refer to soft
coal, but little is being done with re¬
gard to hard coal, although the con¬
sumer is warned by the dealer that the
prices will not be reduced, but on the
contrary will continue to increase and
that there will be a dearth of coal this
winter. And this without any justifica¬
tion whatsoever.
The evidence already adduced shows
conclusively that the situation is en¬
tirely in the hands of the coal operators
and they are jockeying and sparring for
time. President Wilson, Secretary of
War Newton D. Baker, Secretary of the
Navy Daniels, and Senator Pomerene
fully comprehend their motives and are
not yielding to the blare and trumpet of
the philanthropic coal operators. It is
to be hoped that before Congress ad¬
journs, either the Pomerene resolution
or some other legislation will be passed
that will protect the consumer and the
poor people who are compelled to buy
coal by the pail or sack, from the coal
vultures. Such legislation cannot be
viewed in an improper light by those
operators and dealers who are sincere
and honest in their intentions. It can¬
not affect them.
There has been plenty of talk, agita¬
tion and information. Let there now
be action. Adopt special legislation and
secure relief.
RECORD AXO GUIDB IS IN ITS FIJp"|'lj;TH YEAR pF CONTIIVlIOtJS FtIBLlCATION,