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Show P ROTEST OF Government Teaches an Object Lesson of What Would Result From Higher Wage Agitation. Almost, Every Branch of Industry Decries Raise; Living Cost Inflation Is Prophesied. LONDON, July 13. Seldom lias any people received such a swift and "vivid lesson in practical economics as the British government has given this nation na-tion by the notice in the house of commons com-mons Wednesday that it was raising the price of coal six shillings per ton from nest Wednesday. The response has been immediate and specific, and comes from almost every branch of industry in the kingdom; from steel manufacturers, shipbuilders, ship owners, railway managers, gas works and almost all sorts of manufacturers manufac-turers and industries down to laundries and bakeries. They explain just what the government order will cost their concerns and serve notice also that they must 'pass the cost on to the buyers buy-ers and consumers. Great export industries declare the increase in the price of coal will handicap handi-cap them in their competition with other countries and may mean, in some instances, a stoppage of their plants and an increase in employment. The general public is told how much the higher price of coal will inflate living expenses. INCREASE AIMED AS OBJECT LESSON. The government apparently meant this to be an object lesson as to what would result from the prevalent agitation agi-tation for higher wages, and shorter working hours. It also seems to be trying to throw cold water on the campaign cam-paign for the nationalization of industries indus-tries by trying to show that government govern-ment management does not mean that wages can be increased and prices decreased de-creased indefinitely. During the last stages of the war the government was running the railroads rail-roads at a loss, according to a statement state-ment made before the house of commons com-mons by Sir Eric Geddcs, minister for national service and reconstruction. This loss is now at the rate of sixty million pounds a year. Tho deficit in the eoal industry is estimated at 4G. 600,000. Coal is in a. different category, because be-cause the government has fixed prices since it took control of tho mines and has fixed them at a .rate to permit the weakest mines to make a profit. The strongest mines made large profits, but eighty per cent of these came back through the excess profits tax. NEW PRICE CAUSED BY DECREASE IN PRODUCTION The government holds that the increase in-crease of six shillings was necessitated by increased wages and the falling off of production. The question agitating the country, particularly politicians, is whether the government 'proposes to adopt the demand de-mand of labor unions for nationalization. nationaliza-tion. Andrew Bonar Law, government leader in the iouse of commons, said in the house on Wednesday: "It is utterly impossible that an in dustry like coal should be subsidized out of the taxpayers' pocket' Sir Eric Gcddes, speaking on the transport bill, said: 'The surest way 1o national bankruptcy bank-ruptcy is to go on subsidizing services. Each service must stand on its own legs." He added that the only alternative alterna-tive for nationalization of the railways rail-ways was to increase freights. American com pet i t ion is f ea red. ft (Continued on Ps.se 2, Column '.'..) III PROTESTS PRICE of com (Continued fiom Page One.) is said that Americans are selling gxiods at less than Knglish cost prices in London. Lon-don. Gas companies say that their product will cost the people of London 6,000,000 more or year. Inflated prices bring England's greatest problem prob-lem today, these predictions, startle people. |