New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-12
Prices Should Not Increase
More Than 10 Cents
September l
Heated Session Held
Washington Dealers Seek to
Defend Their Fuel
Charges

WASHINGTON, Aug. 1l.-Coal deal
ers who increase their prices for an
.hracite more than 10 cents a ton be-
fore September l will be considered by
the Federal Trade Commission a.
openly declaring "a policy Of profteer-
ing"
Indications are that bituminous coal
prices will be reduced in the future,
the commission announces.
Barring increased wages TO mine
labor" the Federal Trade Commission
declared in an official statement, pres
en-. prices Of anthracite at the mines
will not increase beyond the normal 10
cents per ton September 1, which will
bring prices up to the winter level.
Any proposed increase in anthracite
prices greater than 10 cents per ton
on September | is therefore totally un-
justified. Present indications are that
bituminous prices will be reduced in
the future.
Further indulgence in high prices
and excessive margins on the part Of
dealers of Washington or Of other
cities can be regarded only as an open
declaration of policy Of 'profteering'
on the part OF dealers"
Heated Session Held
The statement was issued after
heated session between the commission
and representative Washington coal
dealers. whose profits, in the opinion OF
the commission, based on the dealers
own figures, have been excessive on
both bituminous and anthracite coal in
the last few months.
Five Dollars a Ton Profits
According TO the figures, gross profits
on bituminous coal sometimes we're as
high as SIS a ton, and the net profits on
anthracite were 1925 70 Si.35 a ton.
These profits were declared unjustifed.
The hearing developed that there was
no coal shortage here last winer, as
was generally believed and said by the
coal dealers.
Dealers vigorously denied that they
were making excess profits. Careful in
vestigation would show, they insisted,
that they were making less than 10 per
cent profit on their investments, and
that the newspapers were fully respon-
sible for the talk Of coal shortage.
They attributed the advanced cost Of
coal TO the high price Of labor, bad ac-
counts and other reasons.
Chairman Hurley and other commits
sioners questioned the dealers closely
as TO the margin of profit that could be
eliminated by placing their business on
a strictly cash basis. Most OF the deal
ers agreed that this would save IS cents
a ton on all kinds of coal, but they also
declared that it would be utterly impos-
sible TO reduce the coal business TO q
cash basis.
Wealthy Fail 70 Pay
One large dealer declared that most
of the loss from bad accounts was dge
TO the failure of wealthy people to pay
for their coal.
IL prefer to deal with The little
classes, such as clerks" he said "If
one Of them tells you that he will pay
you for ton of coal at q certain date
quently will delay payment to get the
interest on the mOHey lie ONeo yOu'
One dealer insisted that a net profit
of 80 cents a ton was necessary 20
yield 10 per cent profit. Commissioners
Davies interjected 10 say that New
York coal dealers were satisfied with
2j cents a ton.
Small dealers, il developed, have been
charging less for coal in Washington
than the larger ones. In response to
this showing, the dealers declared that
the average life of small coal bust
ness is only about three years, because
Of the failure Of their owners to make
proper allowances for investment and
years of poor business.
President Wilson to-day agreed to
confer with the New England coal COM
mittce next Wednesday afternoon re-
garding the bituminous shortage IN
that section. Senator Weeks arranged
the conference.
The New England coal shortage has
become so acute, according to Senator
Weeks. that many essential war plants
will have to be closed unless remedial
measures are found. New England re-
ceives most Of its coal by water. There
is said to be a serious shortage OF coal
carving vessels.