New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-26
Garfield to War
On Coal Retailers
Who Keep Up Cost
Governments Control Plan
Will Benefit Every Con-
sumner, He Declares
Board Making Scale
Federal Commission Tells of
Unreasonable Profits Made
by Some Dealers

WASHINGTON, Aug. 25.-Harry A.
Garfield, fuel administrator, to-day de-
clared war on retail coal dealers who
attemp. to resist the governments CON
troll plan and limitation Of retailers
profits.
Reports from Chicago. New York,
Philadelphia and other cities have
reached here quoting large retail coal
dealers as expressing doubt that the
Presidents coal price DEGREES would
effect any saving to the American
householder.
"The government will exercise con-
troll over the man who sells TO the
public" said DR.. Garfield. "lf any one
thinks that | would be satisfied with
fixing prices at the mine and deter
mining the profits the Jobber may have,
and leaving the retailer free to charge
as much as the public will stand for,
he is greatly mistaken.
"The ccal administration is going TO
see that me principle Of control is ap-
piled all along the line from the time
the coal is mined until 1t reaches the
consumer
Regulations TO govern the operation
OF coal mines will be issued by DR..
Garfield probably next week. DR.. Gar
field to-day called into conference
Francis s. Peabody, chairman Of the
coal committee of the Council OF Ma
tional Defence, and George Otis Smith,
chief Of the Geological Survey.
Working on Retail Scale
Tn. Federal Trade Commission ls
working on a scale OF profits for retail
coal dealers which il will submit TO
Or. Garfield.
Boston coal dealers. the Federal
Trade Commission reported to-day
with few notable exceptions, did not
hesitate" during the spring months this
year "to take advantage Of the neeess'-
ties Of the public and to charge for an
thracite a price that Melted them un-
reasonable margins
The commissions report says in
dividual dealers IN Boston made mar
gins of profit ranging from $3.50 to
sac q ton on various sizes.
Nothing definite has yet been an
rounced relating 70 government plans
for controlling steel, copper, oil ana
other big commodities. An unusual
view Of the price fixing situation
reached members Of Congress and other
officials IN statement BY a Wall Street
brokerage firm, which said in part:
The railroad situation shows de-
cided signs of improvement. Up 70
this time the roads have occupied the
unfortunate position of having their
revenues rigidly fixed bv the govern
ment and, az the same time, being com
PEELED 70 bid for their materials in COM
petition with corporations holding war
contracts At fancy prices. As the larg-
est user NJ bituminous coal, they carry
the heaviest part OF the burden Of in
creased fuel cost, their increased coal
bills for 1917 over 1915 being approx
rnately S110,O00,00o
"The new scale Of prices for soft coal
fixed b. the President will not be i'm.
mediately available 10 the roads be
cause Of existing contracts, but il will
form the basis Of all new contracts,
and 10 that extent will result in very
great saving Increased cost Of steel.
brass. copper and other materials like.
wise seriously mensced net earnings
Price fixing on these commodities a.
Washington on anything like the scale
Fixed by the President.on soft coal will
mean tremendous savings for the rail
roads.
Presidents Prices Are Called Fair
I'VE now have u definite line on the
price fixing policy Of the Admlnistra-
ton. Substantial reduction IN soft
coal prices ordered by the President
resulted IN heavy selling of all coal
stocks. Steel and copper sold of sym
pathatically, on the theory that the
price fixing was 10 be Of drastic
nature Our information leads us 10
believe that. taken as 4 whole, the
prices tyed By the President for soft
coal are fair and reasonable. The
prices fixed for anthracite coal are sub
stantislly the regular fall circular
price Of the producing companies, with
which the Federal Trade Commission
has been familiar.
Taking the coal situation as a basis,
it seems fair 20 assume that the Ad-
ministration has no intention Of impos-
jng hsrdships on industries over which
IT. intends 10 exercise regulatory power.
Excessive profits undoubtedly will be
cut, but the policy M to date seems 10
be based upon a full consideration OF
the cost, plus a profit which will he
large enough 10 take care of renewals,
extensions and other factors which will
enable producers 10 cope with the un-
certsinties Of wartime conditions