Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-11-14
INDEPENDENTS BLAMED
BY BIG MINE OPERATOR
FOR COAL PRICE BOOST
Lehigh Valley Coal Company
Gets Same Contract Rate as
Three Years Ago, Direc-
tor Says
COMMISSION HAS HEARING

Buying bituminous coal on the "dona-
tion" plan will cost the city thousands Of
dollars in excess Of the present market
price of coal as dealers are taking ad-
vantage Of the city's needs to fix high
prices for quick delivery. Up until Novem-
ber the city obtained coal at $3.50 a ton,
but on that date the contracts expired
and some dealers boosted the price TO 50
a ton.
In the Bureau Of Water alone thousands
Of tons Of bituminous coal are used daily,
and this the city Is now recurring on credit
at never before heard OF figures. Because
Of market conditions the Department of
Supplies was unable to persuade its dealers
to make new contracts. To add to the trou-
BILE. the Water Bureaus appropriation for
coal has been exhausted and dealers had
to be asked to donate" coal until such
time as Councils shall see fit to make addi-
tional appropriations.
The first price on November | and a few
days afterwards was SO a ton. Later,
when the markets slumped, the price was
reduced. but at all times prices have been
well above its market. This condition has
prevented the city authorities from getting
any supply above immediate requirements
and in the event of strikes or more serious
congestion of railroad freight traffic a
shortage would probably result.
NEW ANTHRACITE CONTRACTS
When the anthracite coal contracts ex-
pired November l the dealers agreed to a
renewal for the remainder of this year,
at the former price of S2.O3 a ton. While
there has been an increase in anthracite
prices recently, that market is not upset,
as has been the bituminous market
The present high cost of coal is due to
few independent operators who have been
boosting the price, according to f. w.
Weaton, a director of the Lehigh Valley
Coal Company He was one of the chief
witnesses today at the public hearing of the
State Commission TO investigate the in
creased cost Of anthracite This body be-
gan a four days session at City Hall.
The testimony of Mr.. Weaton and the
attitude of G.. B, Troutman assistant gen.
eral manager of the G. b. MarlSle Company,
on the stand were the high points Of to-
days session.
REPRIMANDED BY CHAIRMAN
Mr.. Troutman was reprimanded by Rob-
'ert S. Gawthrop. chairman of the commits
sion, for what were characterized as evasive
replies. After TrOutman had evaded a
number of direct questions concerning the
Markle Company's methods, Mr.. Cav
throp said:
"It is the view of the commission that
you are not giving us the necessary infor-
nation. You either do not know or are
unwilling TO give us the facts. Your an
swers are evasive. You don't give us an
opinion. We want something definite per-
taining TO the cost of coal"
Troutman said he had been in his present
position but six months and was not in
touch with all details He promised to get
the necessary information.
II was brought out during the hearing
that G. B. Markle. OF the Markle Company,
fixed the price of the coal sold by the firm,
and IL was the inability of the witnesses to
give any idea of Markle's whereabouts that
brought the chairmans rebuke.
Troutman said he didn't know where
Markle could be found in Pennsylvania,
and was not sure whether Marke would
appear voluntarily before the commission.
sion.
W. w. Hndennack, secretary and treas
urer, OF the q. b. Markle Company, who
preceded Troutman on the stand, presented
figures to show that in 1913 the company
paid dividends OF thirty-two per cent in
1914 fifty per cent and in 1915 forty per
cent.
At this point ]. p. McElree called atten-
tlon to the fact that the Lehigh Valley Coal
and Sales Company had been taking the
output Of the Markle Company. Minden-
mack said the IehlRh Company did not sell
directly TO the Lehigh Company, and that
the latter were mere agents. The Lehigh
Company, he said, assumed responsibility
for any loss. The witness said they sold
coal at prices set by Markle and received a
commission, He also said that the Lehigh
Company paid Markle for the coal. Mlnden-
mack admitted generally that the Lehgh
Valley Company assumed selling RESPONSE
buty for the Markle company's coal
Louis ID. TompNns, controller of the
Lshigh Valley Company, presented the
members OF the commission with figures
pertaining to the cost Of production the sale
prices and the profit per ton during the
years 1918, 1914, 1915 and the first nine
months of 1916. The reports show that the
Lehigh Valley Company earned gross profits
Of seventeen cents per ton in 1913 twenty
cents per ton In 1914 twenty-three cents
In 1915.
Mr.. Tompkins was not able 70 account
for the increased profits per ton during 1914
and 1915 and could not explain a great in
crease in cost Of production during 1915.
He testified that thirty-iVe per cent of the
coal mined by the Lehigh Valley Coal Com
pany was sold In Pennsylvania.
When Mr.. Weston was recalled he said
that by a standing contract with the Lehigh
Valley Coal and Sales Company his con-
cern had been selling coal for the same
contract price 10 that company for the last
three years. The operators. he declared,
were getting no more money for anthracite
coal now than they did three years ago
The small operators he declared, were
boosting the price. According to the wit
ness the Lehigh Valley Company produces
the State Asked concerning the Increase
he replied that Il could be multiplied BY
four. He contended that the additional
tax placed upon the operators had added
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