The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-10-01
REDUCTION Is ASSURED
Mine Figures of Pea Coal
Lowered, While Bitum-
inous Goes Up.
ORDERS TO BE ENFORCED
Penalties PrOvided-Dealers
Required to Make Monthly
Reports.

spsctsi Despstch TO THe st>
WARRINGTON. Sept So.-Three orderA
two OF them Of the utmost Importance
to all the users of anthracite coal and
the third to certain operators In tho
bituminous fields. were issued to-day by
Harry A. Garfield. coal administrator.
Ono order fixes the basis on which
retail coal prices in the United States
hereafter are 20 be determined. Begin
ming tomorrow morning at o'clock.
This order. It was said by officials Of
tho Fuel Administration tonight, in-
sures positive reduction from the
prices now prevailing.
second order affects a reduction Of
20 cents a ton in the mine prices Of
Pennsylvania anthracite pea coal, which
were set by President Wilson August ~
at 81 for white ash, s4.1O for red ash.
and $4.35 for Lykens Valley.
AS move to meet the complaint of
many OF the bitumlnous coal operators
that the mine prices fixed last month
by the President did not allow margin
OF profit and in some cases resulted in a
loss, Mr.. Garfield also ordered sub
stantial increase in several OF the outly-
ing bituminous fields. an increase which
in some cases amounted to as much as
81 q ton.
Typical Example Lacking.
Tho fixing OF retail prices was move
to WHICH the American public. confronted
by a shortage Of anthracite and the
prospect of oven higher prices than pre-
vailed last winter. had been looking with
hopeful eyes. 1t is impossible, because
Of the wide variety OF conditions in
different localities. TO prevent typical
example OF the reduction to be brought
about or to say how great the reduction
will be-
The reduction Is made s1Iro. however.
by the order OF the coal administrator
that a retailer in figuring out prices for
coal or coke on the new basis shall IN
no case give himself a larger retail gross
margin than the average in July OF this
year, when tho scale of prices WAS
slightly below the present.
The basis on which the retail coke
and anthracite prices arc 10 be computed
, compels the dealer beginning tomorrow
morning, to charge his customers a prics
not in excess of that obtained by adding
to the cost of the coal to him a retail
gross margin equal to the average gross
margin he received for the same size
.
year 1915. plus 80 per cent OF the 1915
gross margin to cover the increased
overhead charges. In 1915 the coal mar
ket was more nearly normal than nov
and. in fact. than in 1914.
| Reduction Assured.
| The natural question OF the indivdua
buyer OF coal--the man in the home--is
as TO how this basis of computation vii
operate, and whether it will result In a
reduction from present prices. Some re
| duction is assured. as previously indi
Gated, by a provso in this regula tioI
that in no case shall the gross margir
exceed the average of July. 1917. Fur
thermore, officials of the Fuel iminls
tration said they would be greatly sur
/ prised If in n cons .derablc proportion o
the retail anthracite coal trade this ba 81
| of price fixing did not also result in
slight reduction from the July prices"
| Their assertions are based on a care
ful investigation OF the retail coal trad,
recently completed by the Federal Trad
Commission. as well as on an iHdepend
ent survey made by pr, Garfield and lii
experts associated with him. There i
no expectation that there will he
marked reduction.
The chief purpose IN establishing tn
new prices IL to relieve the unCertamt,
which the coal buying public has sX
perenced since II was known the GOV
ernment would undertake to nX Goa
prices and to prevent soaring price:
which were certain to come with the uH
precedented demand for coal OF a.
grades and types, together with the di
Ininished facilities for hauling 1t,
The new regulations viii be r.gorousl
enforced. Retail dealers Will be- 70
| o,ire1 IN make nlnntIlv ycy,or-. ,E
Federal Trade Commission and the Fu,
Administrat tor on blanks supplied for Il
purpose. All information needed by 10
commission and Or. GARFIELD - dct,r
mine IL they are conforming to tho rcsu
lations must he entered on tho b'nNf'
Penalties will be imposed I'm cases wIcr
the dealer fails to make the prNn0r rC
turns or refuses to conform 20 tht Ne'
scale Of rr'ces.
Rules for View Dealers.
Retail dealers crtcr'U- lusineS~ zinc
lolI Will ~ roy,rucd ny tho ayc~a=
gross retail margins they have rcoclv,
, since entering business, providing u
, not greater than the average in Ju'
lal7 Retailers having bona .de cor
tracts with consumers made before u
announcement Of the new basis OF priCt
, will be allowed 10 fulhl the terms ur ~
contract. supplying the customer w.
4 the least amount they are bound to tu
nish at the price stipulated until the ~
quiremcntS Of other customers are NJ.
/, II is possible that In some comm
mites the percentage of increase in Il
n present cost Of retail coal business
| more than 80 per cent IN excess of q
cost IN 1915, When this can be clear
demonstrated the local fuel admin,
traitor will he empowered to recomur'
"A readiustmeut. All such readiuSlu,u
o must bc taken up ia the first iUsfau
with the local committees to he a point
ny the stat fuel alnimistrat".
II Ia this connection r.. tiIrf'li stat
+ emphat iraly tonight that m 0r.uG Il
h margin the dealer is under un ohlRat,
4, To increase his l9i1 margin ny the z
y 80 per ceut The addition of that Y
cent. represents the maximum perm
sihlc margin IN any circumstances.