New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-27
PROFITS OF MIDDLEMEN.
INVESTIGATING The BIG COAL DEAL.
DEALERS TESTIFY THAT THEY NET LESS THAN

The special committee OF the senate npDointeo "
investigate the recent coal deal between inc rn'A
pha and Reading Railroad Company the Lens"
Valley and the Jersey Central. and, indirectly Wv
Delaware, Lackawanna and western ha'roau .
many continued its inquiry yesterday morning. AT 'no
Hotel Metropole, Forty-second-st. ana broa""''
senator Mcmahon presided and the only other MEM
her Of the committee present Was senator SaN'o'''
senator's Hogan, EnGres McCarren. Cantor ana irwin
were absent. - =.
The meeting was called for 10 80 o'clock. BAT IL
was after IL o'clock before senator Mchahoh caheu
to order. Sergeant alarms a. f. Iauhauee "'u
.ecur.d the attendance OF ;. J. Peters, OF Peters "
Williams: Joseph X. Wells. Of No. Broaa"aS
Albert Darling, ID. &. Duncan and Lonis Nh'ier' oi
no GAG West Forty nintl-st., vicepresidcht vi tno
Retail Coal Dealers Exchange. as witnesses ihc
examination was conducted 10y Daniel g. Gnn'n 0,
WATERFOWL and Thomas Jackson OF this city, oouisci
to the committee.
During the investigation some Interesting "s"'co
were brought out. which show the actual cost Oh
hnd,,, cool I'm mis- CITY, The first witness examined
was Albert Darling the sales agent for coal merchants
in PHILADELPHIA and New.York lie SAIL lie khc"
nothing about the deal, except what he hnd hca'u '"
read lie had been away sick lie was I'll Tue op'iio"
that the deal would not cause an increase III uc pm
of coal 10 the consumer. lie received II s''"r! ~
could Lot tell, he said whether his prncipes Do"s"'
or mined the coal he sold for them. lie ala hO' seem
nv Mr. Griffin IL he had formed any opinion on t'c
coal deal he answered No. but it Is my private
opinion that II will not raise the price OF coai uc"
lie was then dismissed -
Mr.. retcrs had private talk with senator Mcmahon
and was excused from giving testimony on inc ero"'
that what lie would have TO say would Only "
repetition Of the testimony Of his partner ''''
Williams who was examined last Saturday
Louis Muller examined next, and MS testimony
was OF unusual interest, rs he Is president vi '
Rctsl Noal-dealcrs' Association, which represents
three fnhs Of the retail dealers. He was quesu,heu
with reference to the statement made by frcS'uc'V
Mcleod Of the Reading Company, that some middle
men make rs much rs 81 so ton on the coal 'ney
handle and that the railroad companies Intend TO
save some OF that for the coal companies ahe 'he
consumers, and in reply he rad long s'h'e'hc"'
showing the price charged coaldeaers pS INC oo"-
panes for the last fifteen months, ana the pipe
charged by the retail dealers 10 the consumers. the
ordinary domestic consumer PAYS more Than anyDouN
else the witness said. "GTocers and other men Ia
buslncss get discount according to the quantity
used lie then read from his paper the following
statement In March. 1891. the retailers had ~ pay
%} 80 for the coal alongside the dock June 'h7 prize
to them was increased T. "a %. and on July 10
- 20 on September / TO a. 80 and october l TO
- 3d. on january 20 1892. was reduced to
- 90 and on January - II Increased again Ia
II o. The cost retailers for handling, the Wines
stated 10 be IL follows: stevedorcs ana Wharfage
- cents; carriage ward tnveraec Il cents tiim'
ming 10 cents; waste , cents: net cost per Ton ot
22iO pounds in yard, - o.; delivery 30 cent? labor
in yard screening. 10 cents lpss for dust, etc. ID
cents: total cost per OF 1000 pounds, delivered
~ 49,.
THE average profit TO the retail dealers Is about
AZ cents ton out Of which they must pay clerk hire.
rents and provide bad debts. In the last twenty
seven years the profits 10 my firm have been 20 cents
ton" Mr.. Muller said, In answer to other que'uoh~'
and he then explained that this was practically an
average figure, and affected by discounts I" si"'''H'
hundrymcn and hotels
The recent deal has advanced mt coal 25 cents
a TOM he said. he also explained that there was
no advance In the price of oGh u consumers "h'h
the cost OF sportalOn increased. unless the
TRANSPORTATION charges at least - cents ton
more; then the consumer had 10 pay it. SIR. Muller
denounced bill before the senate. No. 3O1. IN
troduccd In the Assembly by Mr.. sullivan. This
bl said the witness Will raise the prise of Wharfage
for boats from 50 c,nts 10 81 day, ana the con
NJ Ehr.nr,ich, OF No. aOI Ei-t seventy eighth ST.
who Is also a member Of the Ketnl Dealers As,Oc1-
,ion was examined and lie said that the testimony
81 the previous witness correct In general, and
more exhaustive than he himself mad prepared.
lie estimated tie prohts !" rcia uehlcIs Nv ~ 'e IN,
a ton, and had 10 opinion 70 express on inc '""i
oscnh X. Wells rnlddemnn. said that he thought
the Reading deal would have little effect on
the price OF dome nc coal such a communion
price Of transportation. and the railroads eau make
more money In this way tian by attempting 10 DO
:" tnlbing Lusincss In coal. do net tlnk TINT they
can make more ont OF the business than U'e rglnr
dealer" were his comments lie also explained that
the price Of coal nj tdewGtcr was determined by inc
coal companies and that the price Of coal free on
hoard a; tideWater had been about 20 30 ton, aud
nj the mines ~ - ton.
d. T. Duncan was the last witness. lie said
" From TO IL cents ton the profit In hi, hnc
before the coal reached the retail dealer ThiS figure
Of profit Is regular and liked Onc-hundrcd million
TONS Of btuminous coal were mined last year. ana
40 100000 tons Of anthracite. only l.nWpDp tons
were for domestic use. The rest went for manu-
facurng a r1se In the price would drive the mnnu-
fncurcr from anthracite 10 bltumlnOns coal III the
bjtuminOus coal made into coke II couh b" used
by The domestic consumer, too. In It's natural SAT.
n ,s practically useless for stoves. think coal could
he transported more clcaply than II Is at present
II would be unwlSc for the companies 20 raise the
prce Of coal transportation. and folly Ia make q
corner In conl. II would be inprnccablc to eliminate
the middlcman"
At IL O'Clock the committee adjourned I'd hcAt
Saturday at 10 80 O'Clock.