Free trader-journal. (Ottawa, Ill.) 1916-1920, 1917-10-01
RETAIL PROFIT ON
COAL REDUCED BY
ORDER OF GARFIELD
FUEL ADMINISTRATOR FIXES A
MAXIMUM CHI RGE ON IN
CREASE BASIS OF THIRTY PER
CENT,

Washington, Oct Three impor-
tant orders affecting coal prices were
issued last night by Fuel Admnistra-
tor Harry A. Garfield.
By their terms the following be-
came effective today:
l. Maximum retail prices of
anthracite and bituminous coal
based on dealers average gross
margin of profit in 1915 plus 30
per cent added to the present cost
to dealer, as fixed by the govern
ment.
2 Reduction Of 60 cents or Il
per cent in prices at the mines of
Pennsylvania anthracite pea coal
;. Increases ranging from 90
cents TO $3.50 ton for btumin-
GUS coal at the mines in ten
states where operators have
claimed that the former prices
fixed by President Wilson were
not sufficient to cover costs.
Mr. Garfield's order covering retail
prices contains fun directions to deal
ers how to figure their average gross
margins in 1915 and how to fix their
present prices. 1t is stipulated, how
ever, that the new order does not af.
feet contracts between retailers and
consumers.
Whether the public will receive
considerable reductions is difficult to
judge. Ii is Mr. Garfied's belief in
many communities, where the retail.
ers have been making excessive prof
its, there will be marked decreases in
prices to the public. In other local
tiles, where retailers have been con.
tent with modest profits, it will not
make so much difference.
Retailers thruout the country will
be called upon to file sworn cost
sheets with the fuel administrator and
the federal trade commission, Under
power conferred by the food control
act heavy penalties may be imposed
upon those who fail to carry out the
fuel administrator orders
For the present the retailers will
be put upon their honor to fix their
prices according to regulations. In
the near future, however, local com
mittees will be organized in each city
by state fuel administrators. 1t will
be the duty of these committees to en-
force the retail price rules.
In no case may dealer make a
greater profit than during July of the
present year.
To compute the retail price deal
err must take his average gross mar
gin in 1915 plus 80 per cent and then
add 1t to the price of the coal at the
mines, plus the jobber's profits of from
10 to 80 cents ton plus the freight
from the mines to his city. If the
dealer made gross profit of 50 a
ton in 1915 he will make about $3.50.
MI. val HClu toilIudttS iiiuA hht CIV
ditional &c per cent will be sufficient
to cover the increased cost of all fac
tors entering into the retailers bust
ness.
Notifications in the system of re
tail prices may be made as soon as
the local committees and state admin
istrators get into action,
If in certain communities 1t is dem
onstrated that the 80 per cent in
crease does not cover increased costs
the local fuel committee will be en-
powered to recommend re-adjust-
ment A change also may be made If
the margin is TOO high
No change is made in the price of
bituminous coal at the mines in Hi
nos. Complaint of the Illinois op-
orators has not been so pronounced
as those of number of other states
regarding prices as fixed by President
Wilson's original order,
In some instances Mr. Garfield,
while raising the price of mine run
coal and coal of prepared sizes re-
duces the prices Of Stacks and screen
i,,e,