Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-09
WHY COAL BHIGH
Testimony Of the Local
Dealers
CONTROL oP kBODUoT
INDEPENDENT oPEH EoRs SEEM
TO HAVE 81
City Is Bidding Against City and the
Highest Offer Takes the Fuel
Freight Rates Not Raised.

Senator Stewart, who was presiding. re-
peated his statement made several times
during the progress of the hearing to the
effect that the retail coal dealers of this
city are treating the public fairly, judging
from the evidence submitted to the commit
tee. The question to be further determined
Is in relation to the cause of the high prices
Of coal at the mines
The evidence tended to show that the
dealers in this city are getting their usual
profit and no more. In some cases dealers
declared that they had been heavy losers
by the course of affairs during and since
the strike of the miners. This evidence
quite effectually kills all prospect Of the
introduction Of any bill by Senator Stewart
authorizing the Commissioners to establish
coal yards here for supplying the public
with coal at cost and added charges for
handling.
Mining Companies rraigned.
The real significance of the testimony as
a whole secured by the committee Of the
District Of Columbia yesterday is the infer
ence that the great railroad coal companies
that were understood to be obligated to fur
nish their coal to dealers at the former
prices. and later at only an advance of 50
cents a ton, are in some way disposing of
their product to the Independent operators
at highest market prices, and putting but
"
on the market at the stipulated low price,
Before the strike the railroad coal COM
panies were regarded as doing about 90 Der
cent Of the business, and when the Presi-
dent desired to deal with the operators and
secure the cooperation of all the large
concerns with a plan of arbitration he
called on the coal railroads. and only one
independent operator. John MarkIe, was
asked to Join the movement.
Since the coal famine has been on the sit
uat1on appears to have been changed. Now
the railroad coal companies can supply but
small part of the trade, and'the independ-
ents, 1.-The little fellows" are looming up as
the big men in the business, apparently
having exchanged places with the big coal
companies connected with the railroads so
far as their commanding position in the
trade Is concerned. Dealers who ordinarily
get hundreds Of tons of coal a day from the
big coal railroads now are getting two or
three TONS At the same time they can go
into the market and purchase coal at the
mines for 50 in such quantities they
want. No one can tell when the coal is
delivered whether 1t came from the mines
or the Independent operators or from the
mines of the big coal companies Fof the rail-
roads. The coal from the acoal companies.
OF the railroads Is supposed to be sold at
low price about half Of what Is charged at
road companies have practically no coal to
sell, and the Independents have an abun-
dance to sell at high price. ~ e1y...s.
The impression from testimanY taken yes
terday afternoon that the big companies of
the railroads are allowing their coal to go
on the market through the channels Of the
Independent dealers at high prices will form
the basis for further examination of the
witnesses to come before the committee.
After The Stars report was closed yes
terday afternoon the taking of testimony
was continued until 30 o'clock -~,sg aort,,
Stephenson and zeh Testify. u
Mr.. J. H. Stephenson, Of Stephenson Bros,
said that his firm bought from the Reading
railway hard coal, and obtained their soft
coal from Mr.. Leech's firm. The hard coal
cost them $5.75 a ton, and they sold 1t at
1925 ton. according to agreement. The
soft coal cost So. 10 ton, and was sold at
1915, and even So for domestic uses.
Mr.. VIM ]. Zeh- said that he bought coal
only in the open market. At the beginning
Of the famine his coal cost him 50 per ton
gone up and now cost him Sill, and he was
selling it at $12 He SAID he would give $12
for some more.
Senator Wellington questioned Mr.. Zeh
soft coal from Cumberland, but all his ship
ments were from the Chesapeake and Ohio.
He said that supply and demand had been
the regulators of the price.
He was followed by Mr.. John Miller, who
said that he had only sold coal that he had
got from the Reading and Pennsylvania
companies. He sold the Reading coal for
s725 and the Pennsylvania coal for % cents
more. He had not sold coal at any higher
price, but he was unable to supply the de-
mand on him.
Mr.. GUIDE, president of the Business Mems
Association, told the committee Of the diff
culties he had experienced in obtaining coal
for his business, and said that he believed
from his examination into the situation
that the dealers of this city have acted in
good faith. He had at times paid as high
as SO ton for soft coal. Il
Bought From Independent Operators.
Mr.. v. Baldwin johnson said that at the
beginning of last May his coal cost $4.75
ton and he sold 1t at 1915 until he had ex-
hausted the supply in August Since that
he had purchased from Independent opera
tors chiefly. He had signed the agreement
with the railroad companies In relation to
the price at which he should sell coal, be-
cause he was told that unless he did so
he would not be able to get any coal.
Senator Mallory asked Mr.. Johnson what
the companies agreed to do under that
agreement
ITO do nothing" replied Mr.. Johnson.
Senator Stewart pressed Mr.. johnson to
give the names Of, the independent opera
tors from whom he purchased coal and the
prices he has paid, but the witness pre-
ferred not to furnish the names ying he
giving giving s Of the the p namss nisss h1are his
ean see t very we ait that Ss Hen i who are
charging extorttonate prices Tor coal might
not want their names publts r. said SEN
ator Stewart. "stfif, We 6aght 70 have the
names. Would it interfere Win, your bust
ness?' he inquired. a'o',ss
II think it would" repiiHd MI. johnson.
II have a large class Of iicustdmers." he
continued to explain, who are Able TO buy
coal at any price. If did not get the in
dependent coal could not get any coal
at all. So far as I an, concerned, as a
dealer. would buy coal at 80 ton so long
as had customers to buy Il from me. I
cannot get enough Reading coal"
Mr.. Johnson read TELEGRAM dated De-
cember 81. In which he was offered coal at
50 a ton at the mines. he BALD that coal
would cost him = a ton to get It here. So
it will stand him" sl1 g tom;
Freight Rates Not Raised.
In reply to question he said the rail,
roads had not raised the price for shipping
coal. He thought the Reading road was
doing the best 1t could to distribute It's coal
equitably. His transportation facilities were
on the Baltimore and Ohio railroad and that
road had not put UP the rate of freight.
Then this condition OF high prices re-
suits from Specializing In and cornering
coal?' asked Senator Stewart
Yes SIR replied Mr.. johnson.
II lived in California" said Senator Stew