Who Will Pay?

When Governor Gifford Pinchot of Pennsylvania succeeded in compromising the difference between anthracite miners and operators, it was done at the expense of a wage increase which added 60c to the cost of mining a ton of coal. He proposed that the public should pay none of this and that the operators should absorb ten cents of the cost increase and the railroads and retailers the remainder. He proposed to President Coolidge that the Coal Commission should publish an analysis of the cost of anthracite-mining to determine how much of the cost increase the operators should bear. He also proposed that the Interstate Commerce Commission should perform the same function for the railroads.

The Washington Post, newspaper of E. B. McLean (who was a personal friend of President Harding), excoriated Governor Pinchot for these the proposals: "Any by one could have 'settled' the strike by surrendering to the demands of the miners. . . . Governor Pinchot now endeavors to make it appear that if the cost of coal is increased to the consumer, it will not be his fault, but the fault of President Coolidge. This is a piece of cheap politics which deceives no one. . . ."

President Coolidge, taking a less acrimonious attitude, ordered the Coal Commission to publish findings on the cost of coal, as Governor Pinchot had proposed. He also ordered the Federal Trade Commission to investigate the unnecessary handling of coal by jobbers and middlemen -- a practice which increases price. The Coal Commission also pointed out that at its instance more than two months ago, the Interstate Commerce Commission undertook to ascertain whether freight rates on coal could be lowered. Thus were all of Governor Pinchot's suggestions to the Federal Government acted on, or already under way. In fact, the Federal Trade Commission inquiry was undertaken, although Mr. Pinchot had not asked it.

The National Retail Coal Merchants' Association took a potshot at Governor Pinchot in a statement reading: "Another anthracite crisis has been passed, and Governor Pinchot is modestly accepting the laurels being thrust upon him as the protector of the public interest. . . . 'They shall not pay says Governor Pinchot, of the public, and in the same breath he suggests that over 80% of the admitted cost of his settlement shall be borne by the railroads and the dealers." .... He "utterly failed to give any consideration to the legitimate interests of several innocent parties "

Governor Silzer, of New Jersey, published his sentiments on the subject in a letter-- perhaps not devoid of satire-- to the Pennsylvania executive:

"It is unfortunate that all of these strikes and strike settlements end one way, they always finish by raising the price of coal and by adding to the burdens of the consumer. Since the strike settlement added 60 cents to the cost of each ton of coal, you are to be commended for your efforts to see that this does not reach the consumer. I sincerely hope you will succeed, it has never happened before. . . .

"You have well said that it is primarily a Federal question to be dealt with by the National Government. ... If you will continue to prod the National Administration perhaps we will get results.

"In 1921 Pennsylvania imposed a tax of one and one-half per cent, on coal. ... At a price of $9 a ton this tax would be 13 1/2 cents a ton, but what did you do your neighbors? The Pennsylvania Fuel Commission ruled that 50 cents a ton be added to the price on account of the State tax. . . If you take off this tax it will practically equalize the 60 cents added by the strike settlement."