St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-08-06
THE CUT IN COAL.
St.PauI Dealers Selling at Unusually
Low Rates.

Low Rates.
The coal dealers in st. Paul are at war
among themselves at the present time.
Their situation is something like that of the
whale after it came in contact with the tor
pedo. Formerly, when less coal was con-
sumed here than there now is, but few
dealers were required. As the trade in
creased the dealers multiplied until they
became so numerous and the interest so i'm
portant that it was found desirable for the
dealers to combine and fix one price to gov
ern all. An association was therefore
formed, which comprised all the dealers in
the city representing Eastern coal compa-
MES. This organization has been in eX-
istence for two or three years, and
worked along tremendously and satisfae-
torily till about the first of this month,
when the torpedo struck it, and there is
now no association. Everything Is at sea
and prices are wholly distracted.
Some dealers now say that recently il has
been suspected that some member of the
association has been selling for less than
the agreed price, which was SS.25 and
$3.50, and they claim that this was done
by the Northwestern Fuel company. On
the contrary, the Northwestern denies this,
and asserts that it never has cut the prices.
On this point the Northwestern says that
some time ago it became satisfied that coal
could be. furnished TO the people of the
Northwest at a reduced rate. and then it
expressed this opinion TO the association
and urged a reduction. In making known
to the association this opinion, the North
western set forth its views to the effect
that fuel dealers could afford to make cut
by reason of the general
DECLINE IN PRICES
OF anthracite coal, which, at wholesale,
have correspondent with the decline i'm all
other staple goods, and that as this differ
ence between the cost of coal on track to
dealers, and the cost delivered TO consul
mers, according prices established by the
association, is much greater than at any
time during the past several years, it was
willing to do business on smaller margins.
The Northwestern therefore requested the
association to reduce the prices. This the
association declined TO do, and the North
western Fuel company went TO work and
reduced prices itself from SS.25 and $3.50 to
1913 and $3.50, and withdrew from the
association. 1t now has reduced the price
still lower, and sells at S6.75 and 81.
The Ohio Coal company adyertises
that it is ''filling orders at way-down
prices" and that it always leads the cut
IN prices" The st. Paul & Pacific Coal
and Iron company says that it is ''sell-
ing coal at the lowest market prices" and
has reduced the price to the low
figures, and many of the other dealers are
advertising to sell atthe lowest cut rates.
One of the dealers that was seen yester-
day was asked what the result of the cut
would be, and whether the dealers, when
they came to the end of the fight, and con-
Guided that it would be stopped, would put
the prices up high enough to get back all
the money they should lose by the cut. lie
replied that the fight would go on as long as
the coal companies in the East would per-
NIT it to, and then il would be stopped.
They can control the whole matter. As TO
the price, he did not think it would ever be
put back where it was before the cut.
The general disposition is TO sell at the
cut rates only when the money accompa-
MES the order. The cash principle will be
applied as rigidly as possible. Still, deal
ers have to depart from this rule in many
instances, especially with old customers,
who are known to be reliable. Even with
them, they would prefer the ready money.