Every evening, Wilmington daily commercial., 1906-04-09
THE COAL DEALERS SIDE.
An Explanation Of His Position in Emer
geneies Such as the Present.
Letter Ia lhiladelphin Ledger

An Explanation Of His Position in Emer-
geneies Such as the Present.
Letter 10 Philadelphia Ledger
Permit us 10 thank YOU for the able and
honest statement of the retail coal mans
position In the present coal controversy,
appearing n your editorial columns today.
You are the first influential mouldor of
public opinion, so far as wc know To- take
the facts as they are The retailer, as it
were, Islands between the devil and the
deep sea- He handles a product Che
supply oi which Is governed 10y policies
no which he has no Voice. but 60 the con-
sumner he is the only visible target when
hc ilnds % necessary, on account of a short
supply of for amy other reason, to increase
the cost
Under normal conditions, his margin of
profit is probably less IN proportion 20
his Investment. than in any other line of
commercial endeavor He is necessary
part of the system. and in proportion 10
the business done ho probably has more
money invested than any one else inter
osted in the mining shipping or distrihui-
ing of coal. He has no power 20 regulate
prices or 10 control transportation. and
the gross margin of profit under which
Inc operates Is so small that any increase
in the cost of coal ncccssitates q cores
ponding increase in the cost TO the con
sumer
The nature Of the retailers business is
such that he is wholly unable to materially
lessen his fixed charges when for any
reason beyond his control his business is
lessened. For instance. dealer with
fixed charges of approximately 5000 a day
and a business of 300 tons daily, in the
event OF strike or for any other cause.
is very often unable to obtain coal to take
business in excess Of so Of 100 tons day
but it's doubtful if his expenses could be
reduced more than S25. The result of
this condition would be that. even If he
increased the cost of coal to four times his
usual gross profit, he would still be rum
ming his busines at a heavy net loss.
During the winter months the price at
the collieres is S3.75; the freight cost for
Transporting this coal to the Philadelphia
market varies slightly. according TO the
district from which the coal is obtained
but averages close to Sl75. making coal
cost the dealer about IS 80, T. o. b.. Phila-
delphia. Retail shipments Average about
2l2 per cent short in weight "a cents;
labor and loss of coal in screening cost
about Is cents, unloading coal from car
to bin about 5 cents, rent of yard about 8
cents, clerical and Office expenses, insur-
ances, taxes, losses, statesmen, &c, about
% cents, hauling about 40 cents, a total
expense, as set forth above, of 9S cents per
/ ton.
Many dealers are unable. due 10 a lack
of modern machinery or for other reasons,
TO handle their coal az so low n cost An
average. however, of 81 over the cost of
| the coal, f. o. b.. Philadelphia, would
/ probably be a fair and conservative esti-
mate of the expenses attached to the de-
| livery of o ton of domestic coal.
The fun retail circular price. when coal
is bringing S3.75 at the mines is 1915
which would show a net profit of 25 cents;
were It possible to obtain tho full figures
| but in many cases, on account OF compe-
tition and for other reasons, dealers are
obliged to sell at less than the current
figures, the result of which, we should
say would reduce their profit on all do.
nestle coal handled TO about rs cents q
ton On steam sizes, such as buckwheat
the margin is even less, the coal costing
81 at the mines, plus Sl.25 ffeight, OF
S2.25. (. O. b.. Philadelphia. An average
price TO the consumer OF about So per tor
is about all that is obtained, showing q
gross margin OF 20 cents.
To be sure. some of the costs in handling
domestic coal are somewhat reduced il
the handling of smaller sizes. For in
stance. the loss in weight, while of the
same percentage, is 212 per cent OF S2.25
or about cents instead OF IA cents. hl
loss in screening is probably . cents in
stead of ID cents, and the hauling, on ac
count of the larger quantities handled
may possibly cost only 80 cents, makinl
d sI.nlf 20
ing rent, clerical and Office expenses
statesmen, &c, which remain unchanged
about 20 cents ton, allowing a net prof
to the dealer of only 5 cents.
In handing YOU this statement, We
of course realize that the figures give
above do not accurately apply in ever
case, but as a fair statement of the aver
age cost of handling coal we believe tha
they are an honest exposition OF the sub
iect.
In many cases. rather than open tn
matter to discussion. a retail dealer wi
assume a small loss. There are certai
seasons i'm the year when the demand fo
coal is greater than the supply, and r'
tailors are obliged to seek coal from othe
than their regular sources When thl
occurs, we almost invariably are ohlige
TO pay premium, but il is rare indeeC
when the consumer is asked to shouldC
his share of this extra burden.
We believe that IL the public realize
the extreme difficulties under which III
retail coal man labors il would stop harI
( ing whenever a slight increase in the pri'
1 becomes necessary. and realize that n
selling price Of coal like that OF any oth'
/ commodity, is influenced, so far as G.
! cessiVo prices arc concerned, by tho Ia
/ OF supply and demand, and that any elio
ON It's part will have no effect in overcon
ing the operation of law that is as old
the world and as immutahle as the stars.
Thanking YOU again for tho article
your paper of today, We remain.
Retail Cool Dealer.
= Philadelphia, April 5th, 1906.