New Britain herald., 1923-08-30

lent service In bringing the coal near
er to the consumer.
Spectators Opportunity
Anthracite coal especially yields
itself to speculation among wholesal-
ers whenever there Is an interruption
of producing due to strikes, railroad
disability, or any other cause. In
j tracing carloads of high premium an
| thracite coal purchased by New Eng
land retailers last winters 1T was found
| that as many as four wholesale pur-
chases and sales sometimes interviewed
between the mine and the retailer
More than half of the $50 cars of an
thracite coal of domestic sizes traced
passed through the hands of only one
wholesaler at margins varying from
20 cents to $500 per gross ton. Mar
gins frequently taken were so cents,
rs cents. $1.25, s1.75 and $3.50 per
gross ton. the majority of margins
being between so cents and s1.25 per
ton.
"A considerable portion of the cars
traced, however, went through the
hands of two wholesalers at margins
varying from rs cents to s4.75 per
ton. In the case of the carload on
which s4.75 per ton was taken the
first wholesaler took so cents and the
second $4.25. per gross ton.
Wholesalers Margins
Total margins taken by wholesal-
ers on cars passing through the
hands of three jobbers ranged from
IS cents to $4.03 per gross ton. On
two cars sold to the same retailer for
which the total of margins taken was
s4.03, the first wholesaler took IS
cents, the second s2.73, and the third
s1.15, and on a third car for which
the total margin was s4.o3 the mar
gins taken by the three jobbers were
respectively 15 cents, $3.50 and 50
cents per gross ton. A loss of so
cents per ton by the third wholesaler
intervening in the sale of one carload.
was the only loss reported by whole
salers on the 76o cars of domestic
sizes traced.
"On small number of cars pass
ing through the hands of four jobbers,
the total margins taken on individual
cars ranged from 800 to $2.o5 per
gross ton. On'the car for which
margins amounted to SECS per ton
the first wholesaler took rs cents, the
second 40 cents, the third IS cents
and the fourth 31.25 per ton.
Panic Possible.
Should stoppage of mining occur
on September 1. it will accentuate the
already panic demand for anthracite
and unless the buyer and the retailer
representing him learn from past ex-
perience INSCRIPTIONS wholesalers
will have another opportunity to re-
peat their speculative activities of
last fall and winter on any anthracite
coal that may be in the market after
September /, as well as following the
resumption of mining. In the alb
sence of any definite 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
of premium added by whole
salers will depend largely on the |
of the retailer and the |
consuming public to pay the prices
demanded. 1t is only with the re-
tailers' consent that the middleman
may receive as much in margin as
he coal miner receives in wages from
the same ton of anthracite"
Operators Not Blamcless.
That the anthracite mine operators
IAN by no means be considered as
sxonerated from blame by the ex-
posture of the wholesalers, however,
IS quite plainly brought out in fur
her statements by the commission,
setting forth the completely of the
operators with wholesale dealers in
many cases.
In a number of cases, it is declared.
he operators, and wholesalers, while
separate and distinct corporations, are
related through interlocking stock
interlocking directorates,
ind interlocking officers. In some
asses the inter-relations extend to a
,hain of operators and wholesalers.
N times of sellers market anthra-
lite is passed on from one to another
If these closely related interests, each
aking a profit on the transaction with
he result that wholesale margins are
,yramided and the consumer pays ex-
remedy high prices and profits to
,roup of related interests.
Special Agreements
Some mining companies were
ound to have special arrangement
With wholesalers by which the mine
Tiled the coal to the wholesaler at
he prices approved by the Pennsyl-
ania Fair Practices committee with
he understanding that if the whole
aler sold the coal at price above
he mine price billed plus stipulated
rholesale margin or commission, the
RENTED the balance to
he operator. other mining COM
anies sold coal to individuals, in
ONE cases their own officers, at
rices agreed upon with the Fair
ractices committee. These individ-
ais then sold the coal to other
holesalers at higher prices. Such
ractices applied especially to ship
Ieuts to destinations outside the state
Pennsylvania, thus indicating the