Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-09-09
BIG COAL DEAL
j. Q. Fetzer, Former Ottum-
wan, Takes Lead in Scheme.
TO BUY 300 COAL YARDS

's' ~ cS''sdtc t7dnuiln9 OF netdii
Business in chicago-$5,O oo, 900 to
Be Invested-ls Backed by New
York Man.
Chicago, Sept. 5.-Five million dol
lars is the amount that New York and
Chicago capitalists are about to invest
in buying three hundred retail coal
yards of this city, according to John
G. Fetzer, manager for the Mccormick
properties and agent for the new COM
bination. Options, according to Mr..
Fetzer, who at one time resided in OF
tumwa. and whose parents, Mr.. and
Mrs. w. T. Fetzer, reside at the cor
ner of Fifth and Marion streets, have
been secured on more than half of the
three hundred yards desired, and bust
ness will begin under the new plan by
Jan. / next.
This project" said Mr.. Fetzer yes
terday, is not an attempt to monopo-
lie the retail coal business of Chica-
go by forming a trust. There are be-
tween 900 and 700 coal yards in the
city, so it is apparent that we are not
trying to get half OF the total number
Why do we wish yards? AS an in
vestment, and because we believe
there is money in the retail coal bust
ness properly handled. What we pro-
pose is to have enough yards scatter
red throughout the city. to enable us
to take orders everywhere and deliver
to customers from the nearest yard.
Avoid Long Hauls.
with 300 yards it will not be ne
cessary for us to haul coal more than
mile for any delivery in the city. At
present North Side dealers haul coal
to the South Side, and vice versa, be-
cause they have customers who are
friends and who move from one side of
the city to another. 1t costs the retail
dealer now under the schedule of the
| transfers union, so cents ton to de-
| liver coal within two miles, and 5
cents d mile for each additional mile.
On haul of six miles this amounts to
| 20 cents out of his profit, which ordin-
arily does not amount to more than 35
cents ton.
with a haul of not more than a
mile In any case we can probably re-
duce the cost of delivery to consider
ably less than SO cents ton. There
will be other ways Of economizing;
doing great business it is reasonable
| to suppose that we can buy for less
than the small dealer, and in general
large business can be handled much
| less extensively than a small one"
| do you intend to crowd out the
small dealers?" Mr.. Fetzer was asked
/ Relations to Dealers.
i 81 would not say that; we shall not
try to make money so much by taking
! business from others as by handling
what we do get economically. or
course we shall compete with small
| dealers, but we shall not expect at the
start more business than is now going
| to the 800 yards that we are buying.
| All parties selling out to us are asked
by us to remain for five years at sal
aries in charge of the business as
managers. We want the trade they
can command If they do not care to
remain in this connection, we require
them to agree not to engage in the
coal business personally or through
some one else, for five years"
/ In purchasing no great Importance
is attached by the new company, &C.
cording to Mr.. Fetzer, to the size of
the yards; small ones are as accepta-
BILE as large ones, providing they are
conveniently located and can be read,
: lily enlarged. The principal idea in the
purchases, it is said, is to buy exist,
ling business rather than to attempt to
create it,
Who is back of Mr.. Fetzer is ques'
ton concerning which coal men are
specializing The Mccormick manag
er himself preserves silence on this
point My principal is a very veal
thy man." he says, "and has associat
ed with him capitalists who are good
J for much more than $5,000,000. | am
not directly interested in the matter;
am only an agent for accomplishing
the purchases. No, | won't tell who
my principal is, further than to say
that he is New York man."
Dealers Tell of Offers.
Inquiry among the coal dealers OF
the city confirmed Mr. Fetzer's state
ments about the purchase of yards
, Offers have been made to various own
ers and options asked until January
Owners of yards have in each case
been asked to state what they would
sell for rather than offered a price b.
the new company The options ar,
said to represent liberal prices. OF
this point Mr. Fetzer said:
I'VE are wlllng to pay well for al
the yards we want; further, we ar
paying cash 1t is absolutely untrue
that we have offered stock in the new
company in payment for yards. AL
yards purchased will be for cash on
ly"
IOWA CITY FiREMEN WIN.
Championship Belt Is Taken Ava,