Coal Report

Four august gentlemen have been inspecting the British coal industry with statistical microscopes since last August. Chairmaned by the noted industrialist, Sir Herbert Samuel, they constitute the Royal Coal Commission. Last week they released a report of staggering dimensions touching upon every phase of the coal industry, which Premier Baldwin was obliged to subsidize for nine months, beginning Aug. 1, 1925, in order to avert a general strike (TIME, Aug. 10). The four gentlemen recommended that:

1) The coal subsidy should be discontinued on April 30, and should never be resorted to again, "since it is indefensible that persons engaged in other industries should be taxed in order to provide int eased wages or profits in the coal industry."

2) The suggestion that the coal industry be nationalized should be rejected, "because we find no advantage in this plan that cannot be attained more readily in other ways."

3) The Government should acquire the ownership of all British coal deposits, at an estimated cost of 100 million pounds (1/2 billion dollars), and then lease these deposits to private operating concerns.

4) The present scale of wages in the coal industry cannot be maintained, and therefore cuts should be effected, "the sacrifice being made by the better-paid men." Every effort should then be exercised to increase the efficiency of the industry, so that wages may eventually be raised.

The Significance. Premier Baldwin personally summoned the outstanding labor and employer leaders to his residence and requested them to restrain their subordinates from making rash pronouncements of any kind. For a wonder, they heeded and enforced this well advised request. As a result, the week was spent by all concerned in attempting to digest the stupendous bulk of the Report.

Admittedly the Premier will be faced by enormous opposition in his own part (Tory) if he tries to put through the Commission's recommendation that the Government acquire the nation's coal. The miners' representatives will find it difficult if not impossible to reconcile their men to a wage cut. The operators will certainly not take kindly to a complete reorganization of the industry. Finally all these groups will be tempted to keep the subsidy in force and to let matters drift, at the taxpayer's expense. Politicians of ripe experience opined last week that this latter course, dangerous though it is, seems likely to be pursued for some time to come. To cut short the subsidy and risk a general strike was widely declared to be a gesture beyond Mr. Baldwin's political reach.