Every evening, Wilmington daily commercial., 1920-11-22
NO VALID REASON FOR
HIGH PRICE OF COAL
Ex- Dealer Says it is Due to Great
Extent TO Intermediate
Manipulation.

William c. Kirk of Philadelphia, who
was in the retail coal business in that city
for many years, writes as follows concern
ing the coal situation to the Philadelphia
North American of today:
IL feel that the public is being out
rageousy overcharged by the coal men,
said MIR Kirk yesterday. 81 know the
inner workings of the coal business, hav-
ing been in it go many years. For that
reason | feel ! owe IA duty TO help the
suffering public gain more reasonable
prices of coal.
'In view of the high prices existing now,
the many conferences of miners and opera
tors and dealers, and the various excuses
made by coal operators and dealers for
the causes Of high coal prices, the mind
of the consumer ~ naturally confused.
"a fair and impartial statement from
ono who has been in the business for
thirty-five years, both in the Wholesale
and retail lines, and with certain former
connections in coal mining, is herewith
given.
Operators and dealers are making
cold -blooded excess profits by charging
approximately IS a top for egg stove
and nut coal. The operators and deal
ers could squeeze out these excess prof.
its If they go desired. They would make
reasonable profit il householders were
charged sll.
'The three large mining corporations
the Philadelphia and Reading Iron and
Coal, the Lchigh Navigation and the
Iehigh Valley, that control 20 per cent
of tho hard coal output are selling their
coal at the average price OF IS ton
at the mines ready for shipment. This
is several dollars more than the price
several wears ago, and is beyond what
they should charge The freight 10
Philadelphia is 81 &c n ton plus cents
war tax, which makes mn average price
per ton of sl074 70 the retail coal dealer,
"But then enters the so-called scar
CITY bupahoo. The retailers complain
that they arc unable to get one-half of
their supply from the big mining com
panics nj these already inflated prices.
They say they are compelled to get
one-haH of their supply from tho So
called independent operators At 50 to
50. so a ton at the mines. In many cases
they have to go to the brokers and pay
a further premium Of 81 10 SO on the ton.
'"The large mining companies claim
they do not sell TO brokers II that
the case. the brokers must get their
supply from the so-called independents
In anv event, II the large coal mining
companies and the so-oalled independ-
ent companies would stop selling to the
broker, and sell direct 70 the dealer
who is established in business and who
desls direct with the consumer there
would he no excuse for the broker 70 exist
nor for the dealer TO pay these premium
prices
The coal operators. both the large
companies and independence arc charg-
ing price today that IS far beyond a
fair and Just figure Ia the public
From 1889 10 1902. the average price Of
coal at the mines ready for shipment to
the dealer was 81 50 per ton. After the
settlement OF the strike of 1902, the
coal operators started gradual boost
in price from wear TO year, their ex-
cusc being that the contant increase IN
the cost Of mining was the cause.
To-day, as above stated, the same
COMPANIES are charging IS ton. IN
actual advance OF s. 50 per ton over the
old prlce and the Independents are
charging SO so and s. over the old price.
This increase i out Of proportion and
reason Making due allowances for in
creased cost OF mining and other ex-
penses, they can well afford 10 sell the
coal 70 dealers at s. 81 to Sc ton, and
on that basis adding the freight rate Of
s274 also s. 50 for gross profit FOR dealers
to work on, retail coal prices should be At
the most sIl ton
''No douht the coal operators will ridi-
Guile this statement But deep down in
their hearts they know II TO bc the truth.