Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-08-28
SCHOOL BOARD
MUST PAY HIGH
PRICE FOR COAL
Efforts to Buy Direct Fail;
Dealers Want $500 Per
Ton to Deliver

An effort made by the Harrisburg
School Board to secure the winters
supply of coal at a price below that
paid by the average householder in
this section has not been productive
OF results, and as matters stand II
will be necessary for the school Of
flcers to purchase fuel from local
dealers at prevailing rates,
The Harrisburg schools use about
$500 tons of coal a year. Some
time ago the board asked for bids
for the years supply. Only one firm
responded, and the price was con-
sidered unreasonable. Secretary D,
ID. Hammelbaugh was then author
lied to purchase coal direct from
the producer.
Mr.. Hammelbaugh went to Phila-
delphia and visited the offices of the
Susquehanna Coal Company, also the
Philadelphia and Reading Coal and
Iron Company. At the Offices of the
latter company Mr.. Hammelbaugh
had conference with Mr.. Smith
sales agent and arranged for the
purchase of sufficient coal to meet
the needs of the School Board at
the prevailing price at the mines plus
the freight charges. 1t was specified
by Mr.. Smith that the delivery of
coal in any given quantity could not
be guaranteed, but that sufficient
would be furnished to keep the
schools supplied. 1t was also speci-
ned that the coal was to be delivered
by representatives of the concern in
Harrisburg.
Incidentally, Mr.. Smith is reported
to have told Mr.. Hammelbaugh that
many dealers charged public insti-
tutions the actual cost OF delivery,
plus a profit of 10 per cent. The
secretary mentioned a charge of 81
per ton as n fair basis and Mr.. Smith
replied that under the circumstances
this should cover the cost of delivery
and allow at least 10 per cent. to the
dealer handling the coal.
Returning to this city, Secretary
HammelbauSh went to the offices of
the Harrisburg Coal Exchange to
discuss terms. The president of the
exchange, Walter Montgomery, told
Mr.. Hsmmelbaugh that a dollar a
ton would not meet the expense of
delivery and stated that he would
take the matter up with other mem
bers of the exchange.
lOF
Some time afterward the School
Board was informed that a charge of
50 per ton would be made for de-
livery. This price, the School Board
claims, is unreasonab BILE in view of the
fact that the coal would be received
here in large quantities. Only a
short time ago, it is claimed. the cost
of delivery was about one-half the
figure now asked. The dealers of
town have agreed that a ton of coal
can be delivered in Harrisburg for
50 or less, and it is the contention of
Mr.. Hammelbaugh that it is unfair
to charge against the School Board
such items Of depreciation, bad ac-
counts, insurance, etc.
All Cost Advanced
The dealers, upon the other hand,
say that the cost of everything that
enters into the delivery of a ton Of
coal has advanced to such an extent
during the past year that it is i'm
possible to handle the fuel for less
than the amount asked. The hauls
to the several buildings are not short
ones, they point out. and the coal
would not be delivered in good
weather. as it would be impossible to
get it or deliver it all at one time.
Figuring upon the basis suggested
by the Coal Exchange, pea coal.
which is used in large quantities by
the School Board. would cost s6.65
per ton. This coal has been selling
in Harrisburg for some time at S6.25
a ton.