The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-08-01

As was confidently anticipated would
be the case, the coal combine agencies.
or those dealers who handle the coal
of the railroads, were yesterday au-h-
orized to meet any competition from
the outside and this will give the con-
sumers &C this city all coal at prices
half a dollar below the recently an
nounced new schedule of the combine
and at the same time figures as were
yesterday morning given out by the
Diamond and Sweetwater companies,
for the Weber Coal company will fol-
low suit with the same reduction as is
made by the other companies. The
news Of The new combination effected
on Tuesday between the Diamond and
SweetW alter companies came rather
unexpectedly to the railroad coal COM
panies, there being comparatively few
people IN the city who We're aware of
The negotiations on Consultations
were held between the interested peo-
pie and the wires between the local
offices and headquarters were kept hot
with inquiries for instructions. Late
IN the afternoon the announcement was
made that the cut would be met and
just as soon as the Diamond-Sweet-
water agency commences unloading on
the market-the announcement was
n ade that the first sales would be
made tOday-the other side will come
back with a cut Of similar proportions
and be prepared to meet all cOmpeti-
ton. The agency of Morris & Eller-
beck was the first to come to the front
with the statement that 1t would be in
the field ready to sell coal as cheaply
as it can be laid at the doors of the
This agency has taken the Union Pa
cihc yards and with the passing of the
old combine will commence operations
there Mr.. WOstenhOlme viii have the
Rio Granae Western yards and he also
Mil meet competition. Mr.. MontgOm-
cry stated that he was prepared to
sell Weber coal, which is becoming
very popular, as cheap as the cheapest
of similar quality. 1t is the intention
Of the company to maintain the quail
1ty of its COAL sell full weights and as
low as the lowest. This company is
ore Of these hoycotted by the Union
Pacific and Pleasant Valley Coal COM
pa 1ies, but it is pegging right along
and attending to its own business.
There seems to be a well grounded
opinion that this fight viii ultimately
result in the railroad companies max
ing reductions in the present freight
tariffs, for if they do not and the war
fare is continued for any length Of
time it VIII end in the passing from
local coal circles OF a large number Of
the dealers, in fact, it is doubtful
whether one could weather the gale
with the small margins which would
necessarily result from a rate war
such a wholesale retirement of agents
would throw the coal business right
back into the hands of the railroads
again. Even with the margins which
btlx in Tlrin 70
the dealers Of this city have few Of
them made any money and some have
actually worked at a loss, counting
their time and attention. worth any
thing. The coal business Of this city
IS not so important as some might
think, for the daily output of any of
the large properties would more than
keep the coal bins of the citizens of
this city filled to overlooking all the
year round. The actual cost of coal TO
the local dealers under the conditions
which existed prior TO this reduction
was 81 40 for lump and a proportionate
cost price for the other grades. When
selling at $3.50 for lump the profits will
be nil, unless the great coai compan-
les have decided to give the agents a
chance for their white alley by MAX
ing a first cost reduction.
In answering the question, How
ca the new agent of the Diamond
SWeetwater combination sell coal ut
the reductions slated, with the first
cost price remaining as hefOre?' one
of the we'll posted coal men of the city
yesterday stated that this assertion re-
garding the two companies maiutain-
ing their schedules and the agent do
ing the cutting by method of his own
lis all in your eye" This same gentle
man stated that the companies named
had simply pooled issues and were
paying Whitehead a salary to handle
their coal, with probably a commission
clause in the contract By this means
they cut out all retail dealers and sell
their coal at wholesale prices by the
retail.
1t is very evident that the ball has
just opened and it would not in the
least surprise those on the inside if
another cut was to be made by one
side or the other, but If such a, course
is pursued there will be a less number
of dealers than at present.
Go Them One Better.
At late hour last night the an
nouncement was made by the agents
of the Union Pacific and Pleasant Val
ley Coal companies CT the new sched-
day. 1t goes the ACKNOWLEDGEMENTS
combination one better, in that the
cut on Pleasant Valley and Winter
Quarters Goals is a straight dollar in
stead OF % cents. TheSe Goals Will be
sold by the combine agents at 81 for
both lump and nut delivered, I'M
sacked, while the carload rates will be
$3.50 for the lump and S325 for the
nut. There will be no change for the
present in Rock Springs or Castle
Gate the dealers arguing that they
are giving the consumers a better
grade of coal in the Winter Quarters
and Pleasant Valley for 81 than the
Diamond Sweetwater combine can
furnish at their schedule. Unless there
is another change, therefore, the
price of the Rock Springs and Castle
Gate will remain at s.. This reduction
goes into effect this morning, regard
less of whether or not the other side
of the house commences the sale of its
coal at the reduction announced yes
terday morning.