Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-08-24
ATLANTA COAL MEN
GIVE NO PROMISE Of
EARLY PRICE CHANGES
Of Local Dealers
Bought at Figures So to So
Higher Than Fixed by the
President

Despite the fact that President Wilson
Tuesday afternoon fixed the price of all
grades of coal at the mines, Atlanta
dealers Wednesday morning held out
little hope for an immediate reduction
in the retail price of coal.
Several of the larger dealers were in
terviewed and the fact was developed
that the majority of them had bought
larse quantities of coal at the prevailing
mine prices, which were from 81 to So
higher than the new scale fixed by Pres
ident Wilson. They will. they said, be
obliged to sell this supply al the pre-
vailing prices now, unless the govern
mcnt orders them to abide by retail
price which may be fixed within day
or two.
The r. o. Campbell Coal company
says it has on hand exactly $4,000 tons
Of coal. which it bought during April
and May at the mines at prices rang
ing from 1918 to as high as 1926 per
ton The Atlantic Ice and Coal cor
poIation says 1t has approximately
$500 tons, while practically all of the
other dealers in the city claim to have
large stocks now in their yards, for
which they have paid high prices.
However, the dealers were agreed that
the retail price of coal would drop in
Atlanta How soon. they would not
state, further than that the price de-
pended entirely upon the new scale to
be fixed by the government.
r. r. Johnson. Woe president or the
p. o. Campbell Coal company. In dis
cussing the coal situation generally
"wednesday morning stated that 1t was
very serious, and that even though
prices did drop IN Atlanta, there was
grave danger OF there being a coal
shortage IN the city.
I'VE buy most of our coal from mines
in Tennessee and Kentucky" he stated,
"and since August IL every mine In
these two states has been closed down.
and not a pound of coal produced
Some Of the coal also comes from
Alabama, and on Thursday a strike has
been called in every mine of the state.
II that goes into effect the production
of coal mines supplying Atlanta dealers
will cease absolutely.
The transportation facilities are also
matters of grave Importance, for with
out an adequate number of cars to haul
the coal from the mines to the city we
will be unable to secure enough to sup
ply the demand in the city.
PRICES MUST DROP.
prices will drop on coal. no doubt,
but whether We will be able to secure
enough from the mines. and get rail-
road cars sufficient to transport 1t to
the city, are the matters of most con-
Germ right now"
None Of the dealers would state ap-
proximately how much drop could per
ton would take when the new scale goes
into effect at the mines and the retail
price is fixed by the government.
From a comparison OF the prices now
paid by local dealers to mines for coal
and the prices they will pay under the
new scale. 1t Is estimated that coal
will drop from 81 to $1.75 per ton. When
this will go into effect is problematical,
and whether the government will fix a
retail price and order the companies re-
failing coal to abide by the prices fixed,
regardless of the price they may have
paid for the coal is also a matter of
speculation.
Mr.. Johnson said he did not think the
government would require the companies
to dispose of their coal now on hand
at a retail price that would cause them
a big financial loss, as 1t is well-known
fact, ne says, that the coal now on hand
could have been sold many times over
on the other side of the Ohio river where
the demand cannot be supplied.
All of the dealers, however stated
that they would abide by whatever &C
ton the government took.
Even though we lose $40 900 on coal,
we will do what the government desire,
was the way Mr. Johnson, of the Camp
bell company, expressed his compary's
attitude.
Dispatches from Washington We'd
nesday state that the president is ex-
pected to fix a profit of 90 cents for
wholesalers and so cents for retailers.
This, plus the cost at the mines plus
the cost of freight, plus the cost of de-
livery in the city by wagons, gives a
basis for figuring what Atlanta may
expect.
Practically all of the coal used in
CRATES in Atlanta comes from Tennessee,
Kentucky and Alabama. The new
price at the mine for Kentucky
jellico coal is $2.65. The cost of freight
transportation is approximately $1,70.
These added together, plus the profit of
70 cents, gives $5.05, the price which
Atlanta people may expect to pay for
Kentucky jellico coal.
For Tennessee jellico coal the rate
has been fixed at sass per ton at the
mines, and the freight rate is $3.50,
which added together, plus the profit of
10 cents, would make s4.95 per ton
which should be the retail price in At
ianta.
For crate coal from Alabama the
freight rate is approximately s1.35 per
ton, and the prices are $2.15, $2.40 and
$3.50 per ton at the mines. These
added separately to the freight rate
and the profits, would make Alabama
jellico coal cost the consumer in At
lanta S4.2O. $4.45 and $465.
These figures have been computed
from freight rates furnished by the r.
o. Campbell Coal company on coal from
the three states, and as all of the coal
dealers in the city get their bitumin-
Gus coal from these three states they
will be the same for all dealers.