Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-08-30
COMMISSIONS REPORT

Washington, Aug. 29.-Responsi-
bility for high prices paid by the
consumer for anthracite last winter
was laid directly to 1.-The speculative
jobber or wholesaler" in a report is
sued today by the coal commission.
In some instances it was found by
commission investigators four whole
sale purchases interviewed between
the mine and the retailer margins"
running from twenty cents to an
aggregate of s475 ton.
Should a stoppage of mining oc-
cur on September l" said the report,
1T Will accentuate the already panic
demand for anthracite and unless the
buyer and retailer representing him
learn from past experience. unscru-
pulous wholesalers will have another
opportunity to repeat their specula-
tive activities of last fall and winter
on any anthracite coal that may be
on the market after September l, as
well as following the resumption of
mining.
I'm the absence of any regulatory
powers over either mine prices or
wholesalers" margins on the part of
the state and federal authorities, the
extent of such activities. and the
amount of premium added by whole
salers will depend largely upon the
Willingness of the retailer and the
consuming public to pay the prices
demanded. 1t is only with the retail
.ers' consent that the middleman
may receive as much in margin as
the coal miner receives in wages
tn co 30 Of fl,rp 70
Declaring that under normal con-
ditions wholesalers have a proper
place in the distribution of coal, the
report continued:
I'm time of panic or sellers mar
ket. however, the Independent whole
salers tend to become spectators and
buy and sell among themselves,
thereby pyramiding margins and ad-
Vancing prices without rendering any
equivalent service in bringing the
coal nearer to the consumer.
The wholesalers whose activities
resulted in premium prices last winter
are, nominally. at least. not directly
connected with the mines producing
the coal. although there are a consid-
cradle number of cases in which oper-
ators and wholesalers. while separate
and distinct corporations. are related
through interacting stock ownership.
interlocking directoratcs. and inter-
locking officers. In some cases the
inter-relations extend to chain OF
operators and wholesalers.
"In times of sellers market. an
thracite is passed from one to another
Of these closely related interests, each
taking a profit on the transactions.
with the result that wholesale margins
are pyramided and the consumers pay
Ia ,;rI, I'd &c To n
group of related interests. In other
cases the pyramiding results from
speculative buying and selling among
wholesalers who are separate and in
dependent. Many cases of pyramidinS
Of margins. both by related interests
and among really separate and indepen-
dent wholesalers. have been traced by
the commission.
Anthracite coal especially yields it
self to speculation among wholesalers
whenever there is an interruption or
production due to stocks. railroad, or
others. In tracing carloads Of high
premium anthracite coal purchased by
New England retailers last winter it
was found that as many as four
Wholesale purchases and sales some
times interviewed between the mine and
the retailer.
Some mining companies were found
to have had special arrangements with
Wholesalers by which the mine billed
the coal to the wholesaler at the prices
approved by the Pennsylvania talr
practices committee with the under
standing that if the wholesaler SOLO
the coal at a price above the mine
price billed plus a stipulated whole
sale margin or commission the whole
saler RENTED the balance to the op-
orator.
"Other mining companies sold coal
TO individuals in some cases their own
officers. ar prices agreed upon with the
fair prices committee. These indlvld-
uals then sold the coal to other whole
salers at higher prices. Such prac-
tees applied especially to shipments
to destinations outside the state or
Pennsylvania. thus indicating the IN.
effectiveness of state regulation OF
nrices at the mine over coal entering
int interstate commerce..