South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-10-30
Nev-s-TIme. - -:

newt limos Irl services
INDIANAPOLIS. Ind- oct. 80
What is the legal retail price for
coal in Indiana under the govern
ment regulation? This Is the ques-
ton being put up TO the United
States fuel administrator for IN
diana by hundreds Of persons who
are mystided on finding that there
is no conformity in the price Of
coal They have discovered that
one coat yard sells Indiana lump
for one price. and another ward. in
the same locality. charges a differ
ent price They want 90 know why
the price on a given kind Of coal
isn't uniform throughout the state.
or why BE- should vary in given
town
Unless somea retail coal dealers
are 20 be asked 20 conduct their
business at loss while others make
an unreasonable profit. the govern
rnent can not hx q uniform price
throughout the state or even in
city. All il attempts 90 do IS 20 fix
the limit beyond which the retailer
must not 20 In his eagerness for
PROFITS. The government does not
attempt TO say what the retail price
of coal shall be. IL does prescribe
the gross margin on which dealer
may do business and by fixing
limit TO this 1T fixes limit to
profits
BE- the gross margin is meant
the difference between the actual
cost Of the coal a. the dealers yard
and the actual selling price to the
retail trade If dealers coal cost
him 50 per ton az his yard and he
sells il for So. mis- gross margin is
81 and Ia this gross margin is his
overhead expense his delivery ex-
pense. yard expense. and his 1rOft.
II Is necessary 90 understand just
X nat is meant by gross margin if
one would understand how the gov
eminent has regulated the dealers
selling prices. a retail dealer. un-
der present regulation. is permitted
To make a gross margin equal 20 his
average gross margin i'm the normal
year Of 1915. plus 80 per cent of
that gross margin. If. for example.
retail dealer iu the year 1915
SHOWS an average gross margin of
81 per ton (that is if the average
difference between his selling price
and the actual cost Of the coal 10
him at his yard is so under pres
ent regulation ne viii be permitted
to conduct his business on max
imum gross margin for 1917 S2.60
on each ten.
This gross margin viii differ
widely with different dealers be-
cause one. i'm 1915. did business
more economically and on a smaller
profit than another The overhead
expense of NO two dealers viii be
the same. labor conditions will
make ones unloading and hauling
expenses more than others. and, for
these reasons. there is bound TO be
much variation i'm the gross margins
OF various coal dealers in all year.
But assuming that each coal
dealer i'm the state. in 1915, con-
Quoted his business on "a gross mar
gain OF s. the ton and that for
1917 his gross margin under regula-
ton is $3.50 the ton. there would be
no uniformity i'm the retail prices
because of the actual cost of coal
delivered az the respective dealers
yards
one dealer located ON "a siding or
spur from "a coal cor~yins line pays
Tor Indiana lump. the government
mine price Of $500 at the mouth of
the mine. adds 90 this his freight
charges. which for the purpose Of
an Illustration. let us say amounts
to Sc cents the ton. The actual
-ost per ton 10 this dealer is then
81 per ton. This this he may add
MS $3.50 gross margin. making his
-r5ail price $3.50.
Another dealer may re e0titiec TO
me s1me gross margin pay the same
eovernmeut price at the mine and
the same freight rate. hut may have
.o nay a switchile charge for hav-
ne his car switched out 90 his