The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-10-02
CONTROL AUGURS
REDUCTION
in COAL PRICES
Pioneer Coal Man Says It
May Mean Only Few
Wants Locally
DEALERS REJOICE
OVER u. S. ORDER
See Better Profit-Claim
Coal Always Sold On
Close Margin


Pioneer coal men Of Fargo. such
as w. H. Magill, admitted this morn
| ing that they are in the dark as to
whether there would be an immedi-
ate reduction or changes in coal
prices to the consumer as the direct
result of the government control Of
the coal industry.
At the MagilI e. Co. Office, in busi-
ness in Fargo for the last 20 years,
w. H. Magill said he anticipated q
few cents reduction in the price Of
hard coal and a slight drop in prices
on all grades Of soft coal. His state
ment is counter to that of dealers in
the twin cities, who stated that the
federal coal order would probably
send the prices up.
ut is safe to quote me as saying
that there probibly will be no in
crease in the price Of hard and soft
COAL" said Mr.. Magill. "Of course,
there is nothing definite yet. The fuel
administration board has asked all
the dealers to give statements of the
costs on handling after the coal has
been delivered on the tracks and the
cost between the track price and the
price delivered in the bin. The board
is getting all the fuel dealers in the
United States to give estimates OF
this kind. When this matter has been
studied. l think the board will
strike off an average which will be
the specified profit to be allowed on
top of the cost of coal delivered in
the bin. l have not the slightest idea
at this time what the reduction on
the price of hard coal will be, but
believe it will be only a matter Of a
few cents. Soft coal, you know. has
made a far greater advance proper
tionately than anthracite"
Dealers Really JubiIant.
The Fargo dealers were really
jubiIant over the governments order
effective Oct. l. permitting the re-
tailers to fix their prices so as to
limit their gross margins over cost
to the average of such gross mar
gins in 1915, plus a maximum Of 80
per cent of the 1915 margin provided
that in no case shall the average
margin of July, this year, be exceed
ed.
I'VE have been selling coal. as
every consumer and business man
knows. at a close margin" said one
OF the Fargo fuel dealers. Big
profits have been enjoyed by every
concern with the exception Of the
dealer in coal. IL have interpreted
the governments order correctly, we
win receive greater profit on our
sales"
Gross Margin Explained.
OF late the words gross margin"
have come to play conspicuous parts
in the new dispatches relative to the
coal situation. It was explained this
morning that gross margin is the
difference between the sum paid for
the coal by the retailer and the
amount the consumer pays The price
of coal to the consumer viii be the
retailers margin, plus the average
cost to the dealer. In his bins, the
dealers have coal bought before the
federal price became effective. and
other coal purchased at the federal
price.
All this, 1t was said. will be lump
ed and an average struck. To give
full advantage to the consumer OF
gradual reduction In price due to the
Presidents order. semi monthly ay-
erages are required. Originally IL
was intended to allow the retailer a
fixed profit. the same as the job
ber. Differences in cost Of handling
IN different communities made this
an impossible task SO the gross