COAL AT £4 A TON

Dominion, Volume 12, Issue 165, 7 April 1919, Page 8

COAL AT £4 A TON

EFFECT OF CONTROL IN THE ■ UNITED STATES. Remarkable statements of the financial position of the United States railways while under Government control wero wade recently More the benate Wmniittee. It was reported that earnings declined .£50,000,000 per annum under the Government, with further vast losses in si"ht. The losses were declared by tho Southern Pacific chairman to be due to Mr. M'Adoo's enforcement of standardisation." , . ~ The Senate Committee studying tho coal situation found the operators, while predicting a continuation of high prices, carefully avoiding the erection of a surplus which might decrease prices, fcvcrn testimony showed that coal sold at the mines for less than nineteen shillings ■vras sold to the poor of New "iork at just under four pounds a ton. Within a few hours of these revelations Mr. Swift, one of the leading packers, appearing before the l'ederal Inter-State Commerce Committee, advised the continuation of Government control, to which tho newspapers almost unanimously attribute the fact that tho Meat Trust has been permitted to uicTMSfc prices. Mr. Swift explained that a decrease of a cent per pound in tho price of pork would cost his firm a n:illioii sterling. lie was opposed to the Bill requiring Government ownership of all packing interests, including 'refriperator ears, but urged Government supervision with access to books, and Government cijiistruction of more cars. One tiling that is likely to result from this pnceliar situation is the sending of cheap meat to Europe when ships ark in the meantime in America the situation is unpleasmt. Prices are so hign that in almost every industry labour must demand an increase Of wages. This, with the attendant threat of strikes, tends to incline »vivala capital to favour some form of Govern, ment activity, either by actual control, as advocated by the large telegraphic and relcplionic interests and puckers, or Government supervision.