Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-31
PROBERs FIND 40 MEN FIX
PRICES OF COAL IN Jersey
tcontinued from First Page,

especially upon the individual con-
sumers.
THE Leh gin and Wilkesbarre Coal
Company is a foreign corporation. 1t
| is doing business in this State. 1t
admits that 1t Is discriminating
among manufacturers in the sale of
coal for industrial purposes and at
the same t me admits that 1t is not
| selling in fair competition, but fixing
the prices on the basis of another
company that cannot produce as
/ cheaply as they can buy, but that it
| is selling at a rate unfairly fixed.
THE Lehigh Valley Coal Sales
Company, a corporation of this State,
while pretending itself to sell drect-
ly to consumers and others, is per-
petratiug the same kind Of fraud In
aXing its initial prices.
Newark Concern Admits Rebates.
I'm addition the Lehigh Valley Coal
Sales Company in the city of New
ark adm Is that it is allowing rebates
to various favored individuals or
companies purchasing their coal of
them.
I'm addition to what has been said
with regard to the fixing of the
wholesale price of COAL 1t further ap-
pears that the Lackawanna Railroad
Company since 1902 has been supply
'ng the county institutions of Hudson
county with an amount representing
800 tons of coal at the rate of So
per ton for stove coal, 1925 for pea
coal and S2.75 for buckwheat coal,
and these gross tons. At that rate
the prepared sizes delivered would
be S3.40 at the mine.
THE retail prices of coal as 1t is
sold and delivered to the consumer
have almost universally been fixed
through the agencies of what are
called retail dealers.
THE sales companies that have
been organized to sell coal are owned
and controlled by the railroads. They
are devised by the railroads for the
purpose of technically avoiding the
commodity laws of the United States.
The principal coal companies and coal
sales companies (Which means the
railroad companies) have almost in
Variably refused to sell to the con-
sumner directly, and until within the
past year would sell to no one unless
that person was approved by the Off
GERS of these controlled sales compa-
MES.
Retailers Have Combine Too.
I'm addition to that principal retail
dealers have entered into various
combinations among themselves for
the purpose of controlling their own
retail profit.
I'm Newark until up to a year ago
they had what was known as The
Exchange that optrated among the
retail dealers. This organization, it
is now claimed, has dissolved, and
the retail dealers can fix their own
prices.
THE profits usually fixed by the
retail dealers are generally uniformly
maintained among them. There is no
competition among them, and the
price is fixed usually upon the pre-
pared sizes of coal at slips per net ton
in excess OF the circular price issued
by the wholesale dealers on the gross
ton basis
THE retail dea ers insist that this
Is not due to cooperation am ng
them, but the fact remains that the
same price is usually established.
This established price is made upon
the basis of a net ton of 1000 pounds.
The whole sale dealers circular pr ce
is made upon the basis of gross of
2,240 pounds. This makes an addi-
tional profit to the retail dealer OF
upwards of II per cent. so that the
prices maintained by them may be
considered as s1.40 or $3.50 a ton over
the quoted Wholesale pr ce
"In regard to the industrial coal,
the unprepared size, this is usually
left open to a competition among
dealers, and contracts, and contracts
are made with municipa tiles con-
tinually at variant prices below what
is fixed on these circular prices.
There is a discrimination given to
various persons not only by the
Wholesale dealers, but by their con-
nlNance, by the retail dealers among
various Industrial institutions.
I'VE are told that in Newark the
1t gh Valley Coal Sa es Company
have made Determinations in prices
OF industrial size coal between pur-
chasers, ranging from seven to fif-
teen cents per ton, and that such dis
ordinations are made on contracts
made with officers In New York city.
In Jersey City a discrimination was
allowed to retail dealers of fifty cents
a ton rebate. not only on the smaller
sizes, but upon the prepared sizes.
with regard to municipal supplies
In the bids made for the supply of
coat 70 municipal purposes we find
In these bids indications of combina-
tons among retail dealers to control
prices.
I'm 1910 the Board of Education OF
Newark advertised for bids for 700