New Britain herald., 1917-11-27
COMMUNICATED
THE "OLD FASHION WAY"
Sever1n Johnson Shows How Much It Costs to Conduct Coal Business in
 "An EIxDensive Yard"

To the Editor of the Herald,
 In your issue of Nov. 23 in edi- torial of nearly two columns you are criticising the figures submitted by me as to the approximate cost of hand ling ton of coal Since you are ask ing for information on certain items it seems to be incumbent upon me to comply with your request.
 To start off with I desire to inform you that I am not a disgruntled coal dealer l am simply employed by the Stanley-Svea Grain & Coal Co.,, as sec- retary and treasurer; for my services 1 am paid a compensation same as you are by the concern that employs you.
 If through Government and news paper activity the Stanley -Svea Grain 6 Coal Co.,, will be forced out of bus mess, l will look for another job. That's all. l also want it strictly un- derstood that am not speaking for the coal dealers of New Britain. If they have not got the courage to de- fend themselves when they are slan- dered and insulted is no concern of mine. I am only speaking as a man who has had some experience in the retail coal business Neither have I said that there will be no coal in New Britain this winter because I do not know what will happen in the future. Since you claim that you know you are} entitled to a place amongst the small Prophets.
 Now to the figures:
 You find fault with my allowance of 40c per ton interest for capital in- vested. You say that you can buy 1000 tons of coal at the mine for $5OOO. Correct if you get Company coal. On this you figure at the rate of per cent. same as I did and say that 1t will come to 4c per ton as that Is all the money you have allowed. I presume you Intend to cheat the rail- road out of the s20OO freight and the Federal Government out of $90 War Tax. Do you really think that you can do it? When the 1000. tons arrive in New Britain you will of course put them in your pocket as you have made no other provision to take care of them.
 The old fashion way has been to mFntain an expensive yard with a wide railroad front horses, wagons Etc. You will then have an invest ment like this
 COsL or ara $2O,OOO Horses, Wagons & Fixtures. .. 2,000 1000 Tons of Coal in Stock. =. 8,750 Accts. Receivable Outstanding 5000
 Total investment in business $35,750
 Six per cent Interest on the above sum will be $2,145.00 now suppose the dealer sells 5000 tons per year, divide the $2,145.OO with the amount of tons sold and you will find that I am not far off. If you find that I am correct remember that I have 36c per ton comeing next time you revise your es- timate.
 Taxes Sc per ton. You say there is no such taxes in the city or state My Friend: the tax bill need only be $400 to get the Sc per ton., the dealer with this Is fortunate,
 Repairs 7c per ton. You say a wa gon need to break down every trip to make this charge. Our company has got 4 wagons at present that are not broken down but need a little tuch up. You can have the Job at your own price or 28c for the four of them and we will allow 100 per cent. profit on top of it.
 Insurance 4c per ton, we agree.
 Expenses 1Sc per ton. You seek more information. Every up to date has an expense account where such things as light, heat stationery. postage, telephone, advertising, dona- tons, and various other items not in cluded anywhere else is kept account of. This might be more or less my estimate is 18c per ton and believe it Is fair.
 Losses Sc per ton. On what? You ask On bad accounts. Has you con- cernnever lost any money that way?
 Supervision, bookkeeping and Col lecting 4Oc per ton. You say that you would cut the customer out of the of credit that he has had before climate the expense of collecting and do the supervising and bookkeeping for zoe per ton. I Will admit that with the change of credit to cash system this particular item can be reduced but not to zoe per ton. 2Oc per ton for 5000 tons will
 total ............. $1, 100000 SIP per week
 for 52, weeks ........... 624.00 Balance for manager. ......$ 376.OO per year or SIPS per week. Will you trust the management of a interprice where a capital of $35, 100000 is invest ed to a man that can be hired for SIPS per week?
 Unloading from cars 2Oc per ton, we agree.
 Screening and Bagging 23c per ten. Your suggesting to give some of the customers dirty coal and then you give me 2c per ton additional. Thank you.
 Wear of bags Oc per ton You fig l ure the use of bag 200 time. So do [. My figure was based on the cost l of the bags at $1 a piece. you figure 1 the bag at present market value $1.4O l which is correct. Now MT. Editor you probably know that it takes 20 one l