COMMON WELFARE R even THE MONTH As to causes, there has been more or New York Evening Journal THE STAFF OF LIFE money meant dear goods; that war in- So it is that in England and France The poor are feeling it keenly and salesmen, small shopkeepers, many Thus there has been a great increase On the other hand is the big new OUT OF REACH New York Tribune A Wide Choice of Chicago Investments Safeguarded by 1. Our more than 50 years' successful experience in handling Chicago 2. Expert investigation by men with years of training in this field. 3. Conservative valuations, based upon our own carefully-kept records 4. Title guarantee policy and all legal proceedings approved by our own 5. Outright purchase of all securities which we, in turn, offer to investors. Write for Circular No. 9580A ican Woolen Company and the Ar- On November 22, the United States And some few have noticed that their GOVERNMENT INTERVEN- N SPITE of these increases, how- a sense of crisis in the air. In the face of such need there has Most of the proposals strike at the and abroad has shown to be a major factor in retail prices. Thus Commissioner John J. Dillon, of the New York State Department of Foods and Markets, who made a study in Europe of marketing and cooperative agencies, recommends for New York city adequate and convenient terminal facilities for food and provision for auctioning farm products. Another has proposed that food be brought down the long stretch of Manhattan Island by night freight trains on the subway instead of by plodding wagons. And Mayor Mitchel has made public a letter in which he tells the coal companies that, unless he is convinced they are doing their utmost to get coal to bucketful buyers at a fair price, he will set the city's ash-carts at delivering it. Private citizens have offered to supply a fund for selling coal at cost, he says; carts dump at the waterfront, where the coal arrives, and go back empty to collect ashes in the very tenements where the coal is grievously needed. The trend of all these plans, it will be noted, and of many others, is toward government interference in the high cost of food. In previous crises it has tended more toward urging the formation of private cooperative enterprises and of enabling consumers to deal directly with producers, through parcels post deliveries or the famous public markets established by Mayor Shanks in Indianapolis four years ago. New York got an illuminating idea of the cost of hauling and delivering food when the recent milk strike brought out that the milk farmers get only 40 per cent of the retail price; in household terms, 4 cents on a 10-cent bottle of milk. Mr. Dillon has arranged, through his state department, for a real contribution to cooperative experience. After January 1, he has announced, the neighborhood butcher shops of New York city will sell grade B milk, shipped in by the Dairymen's League, at eight cents a quart. The theory is that tenement mothers will take home their milk along with the chuck-steak, and thus save the expense of the wasteful competition of carts from all the milk companies traveling the same routes. WHAT IS A FAIR PRICE FOR COAL? HE most far-reaching plan of all is sion which has under way a study of the whole vast industry of mining and marketing coal. The purpose is to find answers to two questions: What is a fair price for a ton of anthracite coal? What steps, if any, should Congress take to secure the delivery of coal at this fair price? Never before has the national government sought to determine what should be paid for a given commodity Loyal to the Service They Uphold Each Other's Hands The public must be served. This is the dominating thought of the entire Bell organization from the president down. 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In these cases the public assumes the right to regulate the selling price after a full inquiry into the cost of production. While the federal Trade Commission has not yet formally decided upon the details of its procedure in the coal inquiry, it appears to be determined upon one principle of action-that the coal industry differs from most of the productive industries in its primary character. It considers that coal, petroleum, timber and hydro-electric power are natural resources, and that the industries built upon the marketing of these natural resources must be treated differently than are industries built upon mechanical or chemical processes in which raw materials are not so great a factor. While the coal industry is not yet declared to be a public utility, it is at least in a "twilight zone" which may be changed at any time into public control. Anthracite goes by the hodful into the homes of the people. Bituminous coal goes by the carload into powerplants. Any stoppage of either supply of fuel becomes a public calamity, whether it be due to famine prices or to shortage at the mines. Hence the commission will devote a year to studying anthracite in eastern Pennsylvania. where 94 per cent of it is produced, and bituminous in half a dozen states. In both cases the task is undertaken in the belief that social and industrial welfare will be served by public regulation of the nation's fuel supply. Whether regulation shall be exerted through an enlightened public opinion, a legal control of prices, or through the purchase of the business itself by the public, will be left to Congress to decide. But the commission is not primarily interested in demonstrating that the increase in prices established last summer was out of proportion to the wage increase. That was but one of many steps in the upward path of retail prices. and stock market quotations. The government now is undertaking to find out what the service performed by the coal companies in getting the fuel from the earth into the hands of the consumer is actually worth. He Attorney-General Gregory is chiefly responsible for the inquiry. On May 6 he sent to the federal Trade Commission a letter urging that the then proposed raise in the price of anthracite be scrutinized in the public interest. cited the three general advances in wages since January 1, 1900, with accompanying increases in the price of coal. And he suggested that, in the event of another increase, the commis sion "institute a searching investigation into the operations and accounts of the great producing companies for the purpose of ascertaining all the facts upon which such increase in price may be based, including the relation between. any increase in the cost of production due to advance of wages and the increase of profits caused by the increase in price." The commission promised to look into the situation if the price of coal should actually be advanced. Now the advance has taken place and the inquiry is on. A petition to similar effect from the annual convention of the Pennsylvania Federation of Labor made little impression on Congress. But when Senator Hitchcock of Nebraska offered in the Senate on June 22 a brief resolution asking the federal Trade Commission to make an inquiry such as had been suggested by the attorney-general, the resolution was adopted. How far the commission will probe into wages of the million employes in the coal industry has yet to be developed. Facts as to wages and hours of miners and transportation workers will be presented, both from an inquiry into the history of the business year by year, and from public hearings in the mining. and marketing centers. The relation of wages to prices will be made the subject of a special section of the report. It was because the coal companies raised the price of anthracite last summer following a grant of higher wages that the investigation is being made. For more than a year past the commission has been at work on timber. It has brought forward the exhaustive study of the timber and lumber industry made by the former Bureau of Corporations, and has cooperated with the Bureau of Forestry in seeking to determine a fair price for lumber. At the same time it has been working on petroleum-the cost of pipe-line transportation, of oil production and of distribution. And the Bureau of Forestry has compiled a report upon the recent concentration of ownership of hydro-electric power throughout the country in the hands of a few corporate groups. This is in line with a report on water power made by the Bureau of Corporations in 1912. In each instance the investigations have endeavored to show the actual relation of the operating companies to the public. In each report has been an implication that the public must exert a better control over the industry, or must itself compete in the development of natural resources. |