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Real estate record and builders' guide: [v. 100, no. 2574: Articles]: July 14, 1917

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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,