Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-11-16
.COAL Held Up BY
RING Of BROKERS
TAkE SEVERAL pRoFiTs ~ PASS
ING CARLOAD LoTs FROM X
ONE TO ANOTHER.
SHORTAGE OF CARS
MAKES SYSTEM POSSIBLE
One SReaIon For Present skyroeket
Prizes Explained by Man on inside Of
Deal--Unusuai Demand For Illinois
Coal In East Small Dealers Suffer
A.sns vgi.h Consumer.

AA.s.s sish Consumer
Chicago, Nov. 16.-Accumulation Of
profits by local coal brokers on the
same car Of bituminous coal-a sort Of
passing the car around until several
brokers have their "bit'' before it is
delivered to the ultimate consumer
was one reason given yesterday by one
ef the insiders" for the present sky
rocket price of bituminous coal in Chi-
cage.
Here 10 the way it works. as illus
trated by an actual case reported from
one Of the mines last week:
A car Of coal was sent to dealer,
direct from the mine. This dealer sold
1t to q broker, the dealer taking his
profit. This broker sold it to another
broker, broker No. l taking his profit.
Broker No. then sold 1t to still an
other broker, No. 2 taking his profit.
Finally broker No. 8, after having
taken his profit, and after the railroads
had got theirs for the passing around"
troubles, passed 1t on to the consumer,
who paid the mine price plus the
freight rates and switching charges,
and the profits taken by several
brokers.
Possibis Only Now.
The accumulation sf profits in this
manner, It was explained, Is possible
only at a time like the present when
the shortage OF cars or the diversion
d railroad equipment to the war
: bride, trade and the fear Of the public
that the shortage win become more
serious produce an unprecedented de-
mand.
III that So per cert Ct the hitusninous
coal shipped to Chicago is Contract
coal, and all contracts, this, "insider
said, are being filled without inter-
ruption. This coal, too, Is being billed
from the mine at from $3.50 to $1.75
a ton.
The only Shortage" he said IL In
the domestic field where coal users
have failed to make contracts in adj
vance. This .15 per cent of the Chis
cago trade comprises the Small fry
the small manufacturer and the house
holder. It IL this Is per cent that
makes it harvest time hor the coal
D-OhSiS, <LlL0 CvCAl 6AVOo tAS AAAAAo o"AA
ers chance to get back little OF the
losses OF the lean summer months"
Analysis by Figures.
While contract coal is being FUR
nished right up to schedule from all
Illinois mines at the early contract
rrice:ox $3.50 to 1.75 q ton-the opera
tors are. now asking $3.50 a ton at the
mine for, coal that some Of the Is per
cent must have in Chicago. OF the 10
per cent. or .tuncontractef users, APP
proximately IS per cent are what the
trade terns straight steam users. so
the common people who are, now
feeling the pinch of the skyrockety
prices consume one third Of Is per cent
OF the total shipped to Chicago.
1t IL this one-third Of the Is per
cent that is now paying from So tos7
ton for ordinary old soft coal. The
entire is per cent is getting hit pretty
hard by the situation, but the one
third crowd are getting it the hardest.
The operators, the "insider' says, are
taking advantage Of the situation to
"Break even on the excessive over
head charges Just at this time. A
Hers u Explanation.
When the mines are running full
capacity, which they do when there are
plenty Of cars and the demand they
fix their definite overhead charge.
TITS IL the charge for day men, engi-
meers, pump men, mules. and q large
equipment that has to he maintained
whether the mine is running one-half
or full capacity. 1t is a fixed charge.
When the car shortage causes them to
reduce the daily output the fixed
charge aMtoma tically increases the
cost OF each TOT, mined. That is the
explanation offered for now charging
crisis for coal being billed to the big
contract price.
On top Of the $3.50 a ton fixed at the
mine the "noncontract" consumer is
soaked the freigh ra'te-$1.05 ton
ard what is termed the overhead" In
Chicago, representing the brokers'
commission which runs from $1,25 to
$1.50 q ton Just now, and in some
cases more, So altogether 1t brings
the price per ton to the small fry up
TO between Sc and 81 q ton.
While there is a sufficient railroad
equipment now to take care of the
contract crowd-or So per cent-there
is an actual shortage Of equipment for
taking care OF the FRY"
49, Illinois Coal Eastward.
wv, AsThere is an unusual demand for
coal eastward" said Carl Scholz. presi-
dent OF the American Mining Com
pany and also Of the Rock Island coal
and the Coal Valley companies. Z am
told Illinois coal is being shipped as
fan cart as Buffalo and Cleveland. This
IL entirely due to the munitions bust
ness and the continued operation Of
all Industrial plants turnout the coun-
try this year. Ordinarily they close
for from forty Ave to sixty days for
inventory and repairs but such has not
been the case this year.
"'rhere Is shortage at Duluth and the
other ports at the head Of the lakes Of
over 100000 tons. Ordinarily they
have from IA, 00o. 900 to 5000, 900 tons
y on hand at the close Of navigation, but.
now there Is only about 10,0OO,o0o tons
on hand. That, OF course, is due to
the shortage OF vessels
Many members attending the Ameri-.
can Miners Association are Of the
opinion q ring Of coal brokers' in
Chicago and nearby towns are "play-
ing horse. with the railroads by hold
Ing back the delivery of coal cars
"a N-------------------------