The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-06
COAL DECISION
AWAITS ON THE
PRICE AUDITOR
Evidence Thus Far Indicates
That Dealers Cannot Profit
ably Sell Kentucky Lump
at $6.85 a Ton.


Decision Of the coal price committee
OF the Chamber Of Commerce as to
the fairness Of s7.25 per ton for Ken
lucky lump coal IN Memphis must
await the report OF Ernest T. johnson,
the auditor whom the committee re-
tanned TO audit the books OF the deal
ers who are making the plea for in
dorsement OF S.25 In lieu OF the gov
ernment figure Of s6.S5.
Examination Monday afternoon OF
several coal dealers who are still ad-
herring TO the government price, only
served to substantiate and demonstrate
even more strongly the claim OF the
dealers who now ignore the government
price OF $685. that they can not now
handle coal at that figure without suf-
fering a loss. The testimony OF w w.
simmons Of the Broadway Coal and
Ice company; OF Bayliss @, Lee. Of the
Bohlen-Huse Ice and Coal company,
and A. j. Cook, OF the A. j. Cook Grain
and Coal company, was uniformly to
the effect that the coal dealers can
not make fair profit. or, in fact,
must lose money, with gross margin
OF less than $40 per ton. The govern
ment price gives gross margin Of but
$3.50 per ton. Figures submitted by Mr.
Simmons tended to show that II is
now costing his concern approximately
1875 per ton TO deliver the Kentucky
lump coal for which they ask the con-
sumer but $6S5 in Difference to tha
fixed price OF the government His fig
ures were indorsed by Mr., Lee Both
OF them declared that It would be inn
possible TO stay in business and sell
coal at the government price unless
they carried related line such as ice.
Every bit Of evidence secured or tes-
timony taken by the price committee in
the two hearings II has given the coal
dealers charging s7,25 and the one hear
Ing given those charging S6.S5 has been
TO the effect that the government price
Is inadequate and that the dealers must
secure $725 or they can not operate
at profit. II Is now very clear that
II the Investigations OF the auditor do
not disclose some sources OF profit to
the dealers which the hearings have
not brought out, the committee can
only indorse the s7,26 price, or some
other figure nearly approximating IL.
The committee is not vet entirely sat
isfied with the data II has secured con-
cerning overhead costs TO the dealers
and the auditor is expected to supply
this information.
With these conditions IN view w. II.
Matthews. chairman OF the committee,
announced upon adjournment Of the
hearing Monday afternoon that the COM
mittee must await the report OF the au-
Nltol otiptt HuHuilB uONu a utNiSlbHt
The examination OF the dealers dur
ing Monday afternoon was conducted
largely by Judge Julian c. Wilson,
with the chairman. Judge John Il. Nc
Call, and other members occasionally
putting in Il question. All OF the mem
bers Of the committee have labored
most conscientiously at each Of the
hearings to draw out possible bits OF
evidence that might assist them In
making fair decision They are
anxious TO be fair both to the public
and the coal dealers and render a de-
cision which will satisfy the public that
fair price has been determined.
Through their representatives before
the price committee@ the coal dealers
have repeatedly expressed the earnest
desire to have the investigation be so
thoroughly and so painstakingly made
that the public win be satisfied. June
H. Rudisill on the coal dealers com
mittee. touched upon this just before
adjournment Monday. when he said to
the chairman of the price committee;
1.-THE coal dealers are willing. and not
only willing. but anxious for your au-
ditor or anyone else to examine their
books or make any other examination
you may think necessary. The dealers
want this investigation to be so thor
ough that when IL is finished the public
will be satisfied that the coal dealers
are not profiteering,'