Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-11-14
Reasons for Increase From
Standpoint Of Mine Owners,
RaiIroader and Dealer.
GEN. MGR. WILLIAMS TALKS
Purely Business Rcnsons. to Meet In
creased Wages and Market Con-
tIltions, Caused the Raise.

As the recent advance OF so cents on
coal has caused considerable agitation
among consumers in this market who
are compelled TO pay the increased cost
just us the winter Is setting In,
amounting 10 1925 per ton, and the
general feeling among the people that
the advance was arbitrary and unwar
ranted by existing conditions. The Des-
cret News asked for an expression on
the matter from those directly inter-
csted in the ruling price OF coal-the
mine owner, the railroad. and the deal.
err. AS the price of coal now stands,
the sos for each ton is divided between
the mine owner, the railroad the deal
err and the teamster as follows:
Z Coal, F. o. b. at mine. .........,.... s2.I5
Railroad freight charges .......... 1.I5
Dealer for handling ................. LOO
Tcamster for hauling ,............ 30
Cost to consumer s6.2o
The advance of 80 cents per ton. from
$3.50 to s6.25, went into effect Nov. /.
This advance was made in the price or
the coal at the mine. which was for
merly S2.25. and no advance, according
to the above figures, has been made in
the price of freight charges. Dealers
percentage or the amount paid to the
teamster. The mine owner got the
money" and the reason why the raise
wns made at the mine WAS today given
to The News representative by II. g.
Williams. general manager of the Utah
Fuel company, which operates the
Pleasant Valley Castle Gate and other
coal mines reached by the Denver &
Rio Grande railroad.
WHY RAISE, WAS MADE.
There were several reasons which
led UP to the raise In the price OF
coal at the mine" said Mr. Williams,
#"and they are purely business reasons.
One OF these Is that our company has
twice increased the wages of It's coal
miners since there has been any In
crease In the price of coal. The last
raise in wages was effective Nov. ].
Conditions were such thnt we thought
the rase In wages wns justified. and
this was ono of the reasons why tho
price of coal was Increased to cqualizo
conditions. Another reason is that for
the last five years we could have gotten
more money for our coal In markets
outside OF Utah than we have done
within this state. ranging all the way
from 80 cents to 81 per ton In the
idaho. Nevada. Montana, Wyoming and
California markets the price has heen
higher than In Utah. Yet we have
protected our Utah market and have
been selling here for less money while
our competitors have taken advantage
of the situation and have shipped their
coal to outside points. where they re-
ceiped the increased price, and we
We're getting the worst or 1t. AS
matter of fact, the increase of so cents
per ton In this state does not entirely
cqualize the rate. In Wyoming lump
coal Is selling at SO per ton, while we
get only s2.75; In Colorado, according
to rate sheets effective Oct. !, tho
quality of lump coal for which we re-
ceive 1915 Mt the mine costs there
$3.50 per ton. They talk about the
Montana freight rate on coal, but tho
fact Is that VIC could pay the freight
rate from our mines to the Montana
market. which is between 81 and So per
ton. and sell our coal netting So per ton
on the coal attic nine
THE fact Is that Utah has been get
ting coal cheaper than any other vest
err state; and all conditions considered.
we found II necessary to raise the rate
so cents per ton. which still gives the
Utah consumer some advantage over
ithe consumers of Idaho, Nevada.
Wyoming. Colorado and California"
DEALERS SIDE.
The side of the dealer was treated
by j. s. Critchlow, manager of the
Western Fuel company. Mr.. Crtch-
low said: I'VE are the fellows who are
getting all the kicks for the raise in
the price Of coal, but we do not get
a cent of the increase Our expenses
are higher: we must pay our clerk
hire, our office rent our stationery
md other office expenses. and besides
{ this we do carry on quite credit bus
mess. statements to the contrary not
withstnnding. but we only get our 1T
tie old dollar out Of every ton of coal
we SELL just as we used TO before thS
raise went into effect. Then again.
I'VE are compelled to screen the lump
coal which we get from the mine,
which with the freight rate Is $3.50 per
ton, and from every car of lump we
are compelled to take ont from three
quarters of ton 10 four or five tons
of slack. and pay lump price for this
slack, which we sell Al $3.50, Moreover
While the dealers carry their customers
to some extent for credit. we are cont
PEELED to put UP bond to the rail-
road companies to insure the payment
Of the freight. our company maintain
ing a $4,000 bond With each of the
railroad companies guaranteeing that
we will pay our coal freight bills with
in three days from date OF invoice.
The teamsters get IL cents per ton for
hauling the coal from the yard to the
consumer, and we have receipts for
n year past showing this TO be the
case. So you can see where the deal
crS who does not get any portion of
thu Increased price, gets OF"
FL TIE FREIGHT RATE. 8
In Regard to the railroad freight rate
on coaQ. S. V. Dorrah, assistant gem
eral freight agent OF the Denver & Rio
Grandci Railroad company. said:
There Is no reason why the railroad
companies should be connected! with
the incre$sc In the price of coal.s The
freight RATE on coal IS Just the same
now as 1t Mas before the raise In price
vent into infect. IN fact" said Mr.
Dcrrah, "thS freight rate ON conl has
been reduceN by the Denver 6 Rio
Grandc In the past few years from
So to- SIZE per ton. When tho Rio
Grande Western was purchased by the
Denver g. Riol GiRnde company, tho
freight rate on coal to this city was
So bit the company then lowered 1t
to $l.75, and has maintained It nj that
figure, Notwithstanding tho fact that
all materials and evcrvthinr going
into the cost OF construction and oper-
alton of the railroad has increased"