Perth Amboy evening news., 1920-08-31
Is 300 Per Cent. Fair Profit on
Coal, Question Being Asked
at Official Washington.

Copyright 1920. by The Washington
Starr

L
Starr
WASHINGTON, Aug. s0.-Is 500
per cent. a fair profit on coal,-bitu-
minous coal, at that? Uncle Sam
has a personal interest In this query.
because he has been paying some OF
this preposterous profit, that to the
average sane mind looks mighty like
the limit of profiteering. Atlantic
coast industrial shipping interests.
including Industrial New England
which has been described as "the
front line trench in International
trade competition" are vitality con-
cerned in the reply
The department of justice has
promised to study this subject. The
announcement by the department OF
justice Wednesday that the campaign
against profiteering in coal would be
broadened, with special attention to
the situation at tidewater points
throws a searchlight upon some very
Interesting figures with regard TO
coal which have been marshalled by
Iother government agencies.
Coincident with this announcement
by Special Assistant Attorney Gener-
al Mitchell. who Is directing the cam
paign against coal profiteers, the
Federal Trade Commission made
public statistics showing that West
Virginia operators are laying down
the coal from the West : Virginia
field at Hampton Roads tidewater at
$40 a ton. These figures are from
| the cost sheets of the operators them
selves. supplied voluntarily. They
have been adopted by the operators
as working basis and have been re-
quoted as correct by the National
Coal Association.
The Federal Trade Commission
says: "If the operators reporting
from West Virginia fields are repre-
sentative of that state, the average
reported sales realization of West
Virginia operators (. o. b. the mines
(S3.40) plus transportation (about
S2.O0) lays the coal down (. o. b. cars
at railroad terminals serving Hamp-
ton Roads at about $40 per net
ton." This means, the government
officials who have studied this situa-
tion emphasize, that the man VINO
mined the coal had had his money,
the roads have been paid their share
for freight, and the broker, II any,
who has been intermediary. has made
his profit.
This coal that is being laid down
at tidewater for $40 is the same
coal that Admiral Benson two weeks
ago said in public statement the
s5sApaying $40 to $22
ton for That means that Uncle
Sam or whoever else is paying $40
to $22 ton for West Virginia coal
at Hampton Roads tidewater is pay
ing the margin between $40 and
S22. That is about 500 per cent. pro-
fit. From this, of course, mus be
deducted a reasonable charge for un-
10 fC
it is sold. and for loading it on ships
or hauling it to yards.
The Federal Trade Commission
and the department of justice have
been giving these figures careful
scrutiny. They also know that in
dustries in New England are paying
all sorts of fancy prices-S14 to S22
a ton. They are pretty well convlnc-
ed that there is from zoo TO 500 per
cent. margin between the cost of lay
ing down the coal at tidewater. or by
water-haul to the New England
ports, and the prices that are being
charged.
1t is now up to the department. of
Justice to determine: (1) who is get
ting approximately 800 per cent.
margin paid by the consumer; and
(e) whether this is a fair profit.
The Federal Trade Commission
points out that the cost bulletins
which it compiled have b=en used by
the National Coal Association, as
we'll as by individual operators.
Thus the reports which have volun-
tarily been made by that group OF
operators which undertook to share
the labor of preparing them have
been utilized to the advantage of that
other element in the coal industry
which discouraged the making OF
these reports.
Coal consumers throughout the
country are now besieging the FED
eral Trade Commission not 10 oe-
sist from publishing monthly reports
on the cost of production. which thus
far seem to have been the only
check to present still further rocket
ing of coal prices to the consumers.
The coal trade journals are taking
the National Coal Association to task
for it's efforts through the district
supreme court to prevent and dis
courage operators from filing these
monthly reports especially since
they have nothing to hide and
everything to gain in making public
this information"
The attorney general. it is officially
admitted, will see that very particu-
lar attention is paid to show the price
is raised unconscionably 10 the con-
sumner. whether by the John Doe
transfer system which is recognized
as Captain Kidd tactics with modern
industry.
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