The sun., 1917-08-25
GARFIELD WILL
CUT PRICES OF
COAL AT RETAIL
Trade Board Working Out
Schedule for Sales to
Consumers.
MAY TAKE OVER OUTPUT
Control Will Be Established
by General System of
Licenses.
MAY TAKE OVER OUTPUT
Special D<spatch 10 TuE Sux.


WASHINGTON. Aug. 2i.-The Govern
ment's grip on anthracite prices was
frightened to-day by the decision Of
Harry a. Garfield. the new coal dictator,
to name the prices at which the retailers
may sell. The prices at the mine nnd
the jobbers' profit were fixed yesterday
by President Wilson
That the assumption Of absolute con-
troll OF the coal situation will result in
q reduction of price to the consumer OF
household coal Is the assertion OF Mr..
Garfield. in this view he is at varl-
ance with large retailers in New York,
Philadelphia and Chicago. who were
quoted to-day as doubling whether il
would effect any saving to the man in
the home.
The Government will exercise such a
control" he said. that 1t will not be
true that coal will be bought by the
consumer at no reduction from former
prices
IF any one thinks that I would be
satisfied with fixing prices at the mine
and determining the profit the jobber
may have, leaving the retailer free to
charge as much as the public will stand
for. he In greatly mistaken. The coal
administration Is going to see the prin-
cple of control is applied all along the
line from the time the coal Is mined
until 1t reaches the consumer.
All the machinery made available
will be used to enforce the prices named
yesterday by the President and to Sc
cure the benefit desired under the act.
Tho Government will not allow itself to
be thwarted in this purpose"
May Take Over Outp.t.
Mr.. Garfield indicated he would advo-
cate action as drastic as taking over the
output of the mines II the fxing Of prices
did not accomplish the results intended.
With his expert assistants Mr.. Garfield
as soon rs he has finished the task Of
setting price for wheat assigned him
by Herbert c. Hoover will attack the
coal problem.
He will effect control by a system OF
universal licenses. Jobber. middleman
and retailer all will have to take out
license which. II the holder does not sell
at the prices prescribed by the Govern.
ment. will be revoked, putting the Of
fender out OF business.
Uneconomical practices In transporta-
tion and distribution will be eliminated
so far as possible. 1t Is the purpose OF
Mr.. Garfield to do away with unneces-
sary hauls. For example. there will be
no more hauling OF Western coal east
while Eastern coal at the same time is
being hauled west Buyers will be
forced to buy In their own districts.
Dealers and operators will not be able
to wriggle out of complying with the
price regulations on the plea OF con-
tractual agreements unless they are
able to establish that the contracts are
bona fide and not entered into for the
purpose of evasion.
Preparing Retail Prices.
Each possible remedy under the bill
will be studied and We will be ready 10
put into force any Of them that may be
required" said Mr.. Garfield in discussing
the difficulties of the Governments new
undertaking.
He admitted that the enforcement of
retail prices might force many dealers
out OF business, but he contended that
these would be the "inefncientJ," and not
necessarily the small dealers. The Fed
cral Trade Commission now is working
or, n schdule of retail prices which will
be submitted to Mr.. Garfield. These will
be estimated on the price paid by the
retailer plus the retailers overhead and
other expenss and fair profit.
1t manifestly will be necessary to
strike an average on the operating ex-
penses for the retailer. Other things
being equal -his would favor the larger
dealer and tend to crowd out the small
dealer. who would be unable to operate
with as close economy. 1t is the opinion
of Mr.. Garfield, however. that this prin-
ctpally will hit concerns which are being
conducted on poor business principles
and which require for their maintenance
q larger margin over the price paid to
the jobber.