The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-14
KENTUCKY COAL IS
F|XEDAT $7.25T TON
BY INVESTIGATORS
Auditors Report Confirms
Fair Dealings of Coal Men,
Removing Imputation of
Profiteering.


There will be no prosecution for
profiteerlng under the Lever act, of
Memphis retail coal dealers who charge
WIS per ton for Kentucky lurnp coal.
This price was Endorsed by the coal
price committee of the Chamber Of
commerce at q meeting held at 4
O'Clock Wednesday afternoon at which
the report of Ernest Z. Johnson, who
audited the books and other accounts
OF the coal dealers at the behest OF the
price committee. The resolution of in
qorsement was adopted after IL was
found that the auditors report con-
firmed figures submitted by the deal
ers showing that the government price
of, s6.S5 per ton for Kentucky lump
win not permit a reasonable profit. The
resolution follows:
Resolved that it is the sense of
THIS committee that the price of
$7.25 per ton for Kentucky bitumi-
nous coal, now being charged by
the Memphis retail dealers, is not
shown to be unreasonable. This
finding Is predicated on the present
: cost at mines, freight rate and cost
of distribution"
ent TO vote on the resolution we're:
". IL. Matthews, chairman; w. l..
Moody. secretary; the Row. w. D.
Buckner, Judge John r. Mccall, John
S. Robinson, James s. Dayant, Mai. j.
NJ. Walsh, John w. Mcclure, Dan Wolf,
g J. Barnett and Dabney Crump.-
Will Raise Price.
The committee acted to determine a
fair price for coal from the Kentucky
fields in Memphis by virtue OF an
agreement between representatives OF
the Memphis Retail Coal Dealers assoc
citation and the department of justice
in Washington that a price determined
by a committee named by either the
president of the Chamber of Commerce
or the mayor of the city would be sat
isfaetory to the department and might
be adhered to in lieu Of the government
fixed price of $6.S5, set during the
strike emergency by presidential proc
lamation. The departments decision
was made as the result OF a protest
lodged against the government emer-
gency price made by the Memphis
dealers.
Prior to the sending of their repre-
%sentatives TO Washington a number of
the Memphis retail coal dealers raised
the price of Kentucky bituminous coal
to $7.25 per ton and continued to sell
at that figure during the investiga-
lions Of the Chamber OF Commerce
committee. Other dealers, however. ad-
hered TO the government figure OF Sc So
per tbll, utCldIlllR wat tiItN ulu nor
feel inclined TO charge contrary to the
government decree.
However, the government price Was
maintained under protest and II is pre-
sumed these dealers will now increase
their price to s7.25.
The findings OF the committee do not
control prices of Alabama. ,Telltco. nor
coal from any other field sold in Mem
phis. Kentucky Coal was made the
basis for price fixing because Of the
fact that Is TO 30 per cent Of the coal
consumed in Memphis comes from that
field, and 1t was assumed that the price
of this coal would serve automatically
to raise prices Of other Goals.
In authorizing the adjudication OF the
Goa price by the Chamber of Commerce
committee, the department of Justice
attorney.
Data Exhaustive.
In compiling the data which he pre-
sented to the price committee, Mr.. John
son had access to the personal income
tax reports of the coal dealers and all
the business accounts. This data re-
typical cases. II showed that the Gal
loway- Eberhart Coal company made n
net profit OF 80 cents per ton for the
year ended April 30, 1919: the Hunt
Coal and Ice company, u cents
per ton; Davis Coal conlpany. z cents
per ton, and the Latura- Written Goal
COMPANY. 3s cents per ton.
The difference in the profits OF the
Galloway Lherhart and the Hunt-Bcr-
lin companies was accounted for by
tho heavier overhead expenses of the
latter company, which did a%pnroNi-
the same volume of business
done by the former company. This
difference in overhead costs was about
So, 000 for the fiscal year. f9lS-i919.
A loss by the Lawo Coal and Coke
company of ss,SltS7 for the same fiscal
year was also shown hv the report.
These profits were all made on coat
sold for n figure slightly under S7.25
per ton. did not take into considera-
ton increased cost of operation SAGE
April, 1919. which the renort showed to
be about 20 cents per ton,
Being unable TO find any evidenesa NJ
eytortion on the part Of the coal deal
ers. Nthe committee moved to grant
what all figures - nbtainsble showed
would furnish A fair and reasonable
profit,