The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-02-08
MIDDLEMEN TO GO.
Movement in New York City Coal Cir.
Cles is Afoot -..Small Consumer
Will Profit.


Will Profit.
The profits made by the middlemen in
the coal trade in the large cities of the
east, more especially New York, have
attracted the attention of capitalists
and spectators, and there Is move
ment on foot which is strongly backed
to organize a company in New York
which will handle coal and sell it di-
rectly to the consumers.
The capitalists at the back of this
proposed company say that they can
see their way to obtaining good inter-
est on a large capitalization, and de-
clare that they will be able to sell coal
to the very poor at almost one-half
what Is now being charged by the ped
lers and grocers engaged in the busi-
ness in New York city.
Some idea of the profits reaped by the
middlemen in the coal business, all of
which have to be Paid by the consumer,
may be CLEANED from the fact that it
is estimated that during last year the
total amount of money which went in
commissions alone, exclusive of retail
dealers profits on the sale of coal in
this country, was $7,000,000.
1t is estimated that there are about
1900 coal peddlers in New York city.
Their estimated sales average 100000
tons for the winter season of about
twenty five weeks. In addition to these
pedders there are about 1890 grocers
engaged in handling coal. whose aver
ages sales are from four to five tons
each per week.
TOTAL FOR THE YEAR.
This is a total of 800 tons per week
handled by these small grocers alone,
or total of 537 500 tons for the year;
that is to say. for six months of the
years. These grocers and peddlers pur-
chase their coal at an average of 50 per
ton; probably as low as $475 per ton,
but none go higher than $5.25 per ton,
delivered in their cellars. They sell
this cal by the bushel and the basket
full, at CSC per bushel and 10c. per buck
ct. These buckets average about
twenty-one pounds each, and the BUSH
els vary from fifty-two to siXty-one
pounds each, averaging about fifty-five
pounds.
The standard bushel of anthracite
coal should contain about ninety one
| pounds, so that in selling by their own
measures these grocers practically
| cheat the poor consumer, who is forced
to buy his coal in this way, out of about
| thirty-siX pounds in each bushel.
Under the present laws the poor peo-
pie have practically no redress. If they
| complain. the grocer says that he
| bought his baskets as bushel baskets,
and he doesn't know whether they con-
| tain u standard bushel or not-and does
not care. 1t is impossible for the poor
| consumer to take the matter to the
courts, and he is compelled to submit
! to the imposition.
SIZE OF A BUSHEL.
According to United States law, a
| bushel measure contains 2,150la cubic
| inches, and it's dimensions are S0l2
! inches inner diameter, 1912 inches outer
diameter and inches deep. The BUSH
el of the average grocer is about half
this size. In addition to this, it must
| be remembered that coal is sold at tide
water at 2,240 pounds to the ton. In
Pennsylvania the law requires a ton to
contain 2,24O pounds, but in this state
there is no fixed legal standard. There
is an effort evidently backed by the re-
tail interests, to legalize the present
weight of 1000 pounds at which coal
10 SOlll dl lSltill III tuio olGltt, " IISll, A.
is claimed, is radically wrong.
The, enormous profits made by retail
grocers and peddlers in this city alone
may be estimated from the fact that
during the six winter months these men
handle about 100000 tons of coal, and
from it secure a profit of about $4,000,
900. This all comes out of the pockets
of the very poor people, who are forced
to purchase their coal by the bucket
| or the buShel. The average man, when
| he hears of q rise in the price of coal
| Immediately accuses the operators and
| railroads of making enormous profits
| This is not the case. 1t Is the retailer
| and the grocer, and the army of mid
| dlemen who make the big fortunes out
of handling coal Last year. when the
! poor of New York We're paying from 81
| to IS per ton for their coal, the men
| who operated the mines We're not re-
ceiving on an average more than $l.9C
per ton. Out of that they had to pay
their miners, royalties, various interest
charges and all the expenses incurred
around the mines.
WHAT RAILROADS GET
The railroads for transportation of
the coal, received on an average 81. 81
per ton, the commission man getting the
balance, between $3.45 and $3.50, at
which figure it was sold to the grocer
and peddler.
In regard to the number of middle
men who come between the actual pro-
ducer and the actual consumer, it may
be mentioned that cases are common
in which it is known that coal has
been bought by a commission man al
first hand, sold to another commission
man, and again sold by him to a third
commission man, who has sold it to the
wholesaler, who, in turn, has sold it tC
the retailer Every one of these mer
has made a profit on the transaction
and the consumer, particularly the very
poor consumer, has had to pay.
The plan proposed now, of which nc
details are at present available, is tC
handle the coal at first hand and, by
establishing a large central retail yard
deliveries Will be made directly to the
consumer. Thus the enormous profits
reaped by the army of middlemen viii
be cut off.
tn MNnIEV THE IN IIINcTJON