The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-03
TO LOOK
INTO BOOKS OF
e COAL MERCHANTS
Price Committee Invites Coal
Dealers Who Still Sell at
Government Price of $685.
Per Ton t( Testify.

representatives Friday afternoon, the
committee decided 10 employ a COM
the coal firms that are appealing for
charging the 1875 per ton price
than the government fixed price
OF s6.S5. It, will be the duty OF this
TO verify figures on gross mar
gin, net profits, income taxes and OPP
expenses already submitted by
the ctal Cealers 10 the committee: to
ascertain the capital stock invested In
the various concerns. the net earnings
capital stock. and what portion OF
these earnings accrue from bituminous
coal; what other lines OF business, II
any, handled In combination with the
business of selling soft coal. and what
portion of overhead expenses Of the
general business is placed on the soft
coal business. The auditor viii also be
expected to compile comparative Zig
ures on expenses Of the past five years.
The selection OF the auditor and de-
termination Of his method OF procedure
were left 10 W. II. Matthews, chair
and w, l., Moody, secretary. OF
the price committee, They stated Fri
day afternoon that they expected to
select the auditor Saturday.
In the short address with which he
opened the hearing Friday afternoon
Mr.. Matthews explained why the IN
vestLgation must proceed further be-
h@N ~ " Ns'A NN'hA W. 49, 49, -
said that the first evidence submitted
nv the coal dealers to substantiate the
S7.25 per ton price for coal had per-
suaded some members of the committee
that 1t was a fair price and that they
should ratify II, while on the other hand
the low earnings and infinitesimal
profits which the coal dealers evidence
had shown had aroused the suspicion
of others on the committee. Because
OF this divergence Of views the exam
inatiOn of the coal dealers affairs must
proceed until such time as skeptlcals
were convinced or the trustful disll-
lusioned. "They are all honorable
men" the price committee sat5 ri the
coal dealers, as Antony said of Brutus
n his colleagues, but in their judicial
| capacity they can accept nothing as
true that is not proved by satisfactory
| evidence,
In the course of the hearing which
followed during which Phil M. Canale,
counsel for the dealers, presented fig
ures on net profits. the members of the
committee complained that they had not
| yet been able to get hold of anything
that would give them a satisfactory in
sight into the condition Of the dealers
affairs, In other words, no evidence
has yet been introduced into which
they could set their teeth"
The price committee Is very anxious
to get every sprig of evidence that
might he of value. and accordingly
asked the press to invite those Goa
dealers OF the city who continue to ad-
here to the government price OF sc. sc
tee on Monday afternoon at 4, O'CLOCK
and give the benefit of their viewpoint
To such Of these whose names can he
secured, the committee, Mr.. Matthews
stated, will send Il special invitation
by letter. urging them to appear or
l AN.aN.K+ - ItRlV.A nnNNrAl Fl,,a col
the. Chamber Of Commerce.
Another urgent invitation was alC
issued to the consumers who may have
information OF value to appear before
the committee at the Monday hearing
and file their evidence.
Figures compiled tromsthe books o
five dealers showing the cost per tor
for handling OF coal in the fiscal yea
Of April, 1918. to April, 1919, and five
months In 1919, June, July, August
September and October, showed that II
no instance had any dsaler made a ne
profit of more than AZ cents and GER
tain instances where there had been
loss. one concern showed the prof
Of q cents per ton, while " Shove,
losses, one l6 cents per ton n an
other a. cents per ton, The lowes
nrofit. where a prdfte was made, wa
I, shown to hc Il cents per ton. The tig
/, ures were based on the gross margil
. of $40 per ton, which the dealers ga.
they must have to do BUSINESS sue
, cessfully.
These citations were not made b
names Of firms, but by numbers, MI
Cauale stated. however. that he woult
4 furnish the committee the names cor
| responding to the numbers upon re
quest,
An but one of the concerns cite,
1 would show a loss upon tho basis o
I the gross margin Of $3.50 per ton, a
| allowed by the government in its pric
| of S6.S5 per ton for Kentucky Goa
Tho losses would range from "a cent
per ton, with only one gain, that o
three cents per ton.
These figures as compared with fig
urcs for the 1918 period OF government
control and $6.S5 coal with S2,S0 mar
gin, show losses and some small prof
| It's. The highest profit during this pc
| Rod was 80 cents on the ton, thes
figures state, and the lowest 20 cent
per ton. Three out Of the five shoN
n loss OF from three cents per ton I
"A cents per ton.
one concern furnished the enigma q
continuation in business since 1917
while continually losing money on ever
ton of coal sold. The dealers Counst
will furnish the name Of this dealer.
Mr.. Canale and members Of the deal
era, committee, W. 7, {. Berlin, Jun
| kuulSitl tanu w j, Its'ot'' WI
uuizzed by members Of the price CON
mittee relative to the evidence SUD
mitted. Judge Julian c. Wilson, ludR
! John T. Mccall and Maj, J. NJ, Walls
Y chiefly conducted the examination, tn
two Judge displayed a particular inter
est IN the cost TO the dealers of hand
|, ling coal, while Mai. Walsh raised
question Of profits which aroused niue
interest.
Mai. Walsh called the attention {
the dealers to the fact that their Ow
. figures show that during tho year 1871
they had at various times enjoyed groS
margins over and endured gross MAJ
gins under the $40 figure, which the
maintain is the fair, proper and min
mum gross margin for their business
/, Up to April. 1919. when the govern
ment price Of $6.S5 was IN force an
coal was S. rs at the mines. wit
freight $3.50 per ton, the gross MAJ
gin was $3.50. Then when governmer
control was removed, the cost of con
at the mines was reduced to $2,25, IN
crsasing the gross margin to the co,
dealers to $3.50. But the dealers di
not pass this reduction OF price at II
mines on to the onsumer They too
the additional 50lcent profit per 10
as their own. Then in September, l9I
the price at the mine went back
S2T5 per ton, at which time the dea
crs raised the price OF kentucky co
to S7.25 per ton. by this raise fallin
10 cents per ton short Of the gro'
margin which they We're getting b,
n tween April and September. He won
\ ed to know why the same profit "a
B not continued at all times.
Both Mr., Rudisill and Mr.. Canalc e.
!. planned that the additional profit ere
!. ated by the drop in cost Of coal at Il
\ mines after April |, 1919. had be,
absorbed by the dealers as a matt
|, of good business. They went on
: show that conditions were very unse
tied, that IL was very hard for a bus
= ness man to figure very close margil
\ at that time and that furthermore Il
margin of $3.50 allowed under the pri
u s2,75 at the mines worked a har,
I hip on the dealers from which the r
81 -ucllon Of cost NJ tho mlnoA gave III