The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-08-13

The coal war which has been waging
for some days was brought to termina-
ton yesterday by the dealers getting to-
gether and agreeing on a schedule of
! prices to be maintained in future. Prices
were not entirely restored however, as
the new schedule embraces a horizontal
! reduction OF 70 cents TO the consumer on
all kinds of coal except slack which re-
| mains at the figure TO which it was raised
some months ago by the producers
The settlement of the differences among
| the coal dealers was brought about by
| the fact that people were taking advant-
age of the low prices and were laying
in their stock of coal in many cases for
the winter and in all cases supplies were
purchased for an extended period. The
dealers saw they were only helping the
consumers TO pay for their coal and de-
clded they themselves were the only
| losers Iney accordingly had meeting
OF the exchange called and after con-
siderable discussion and demurring to the
demands of Hahn & Bamberger who pre-
cipitated the war by making the first cut,
| the other members gave in and agreed to
the schedule proposed by that firm.
The new compact went into effect yes
terday afternoon and hereafter the prices
OF coal will be as follows:
All kinds OF lump coal except Pleasant
Valley and Winter Quarters will sell for
S4.75 ton. Pleasant Valley and Winter
Will sell at S4.oU ana all
kinds of nut coal will sell at $4.25 a ton.
Slack coal will sell at So, which is a raise
OF 70 cents over the price the exchange
has hitherto charged for it but which is
in reality no advance as the producers
made the raise some months ago.
The coal war was brought about by GER
tain of the dealers violating the agree
ment of the exchange underselling the
other dealers by giving customers a COM
mission TO secure their business. The fact
that this was being done was discovered
by Frank Hahn of Hahn 6, Bamberger.
He decided that the only way to cure the
evil was to make reduction in the re-
failing price which would not leave suf-
ficient profit in the business to enable
those who were giving commissions to
continue to do so. He accordingly con-
suited with his partner and they decided
to make the reduction which precipitated
the war.
The other dealers maintained prices for
some days, SuppOSing the producers would
refuse to sell Hahn & Banlberger coal in
accordance with the compact (which has
always existed heretofore between the ex-
change and the producers, which was to
the effect that any member of the ex-
change cutting the established price
should be shut off from his supply. They
apparently forgot, however, that a law
was enacted by the last legislature max
ing it unlawful for persons or corpora
tons to enter into a combination to keep
up the price of a commodity. The produc-
erS had not and declined to lay them
selves liable to the law by refusing to
supply the offending dealers. who as a
consequence got their coal as regularly
as they ordered it.
Discovering this the other dealers met
the original cut and went it zone better,
the price finally reaching a. point at
which there was no money in the bust
ness. Discovering that Hahn & BAN
berger were obdurate and determined
that prices should be reduced the other
dealers brought about the call for yester-
days meeting at which the new schedule
was agreed to.
In the new agreement the dealers do
not bind themselves by their signatures
to maintain the rates but are merely put
upon honor to do so until ii becomes
necessary to make another change, when
any dealer may do so by giving notice.
The war has had one beneficial effect
that of reducing the price of coal to con-
sumers and to a point above which there
is no likelihood Of it's ever going again.