Evening star., 1923-09-15
DATA ON LOCAL
COAL YARDS ASKED
Work Seeks Information on
Question of Closing Govern
ment Fuel Station.

The National Retail Merchants
Coal Association today was called
upon by Secretary of the Interior
Work to submit to the government
comprehensive statement concerning
ability of Washington coal dealers
to handle the governmental and
domestic fuel needs of this city,
should the government fuel yards be
abolished.
In a letter addressed to Roderick
stephens of Philadelphia, chairman
of the governmental relations COM
mittee of the Retail Merchants Coal
Association SceFetary Work asked
for definite answers on six points.
covering the adequacy of service
available among local coal dealers
and the possibility of reduced prices
should the government decide to
throw the business now handled by
the fuel yards upon them.
Asks for Viewpoint.
Secretary Works letter in full read
as follows:
+In considering further the matter
of the government fuel yard discussed
between us, i would like to have
clearly before me the coal merchants
point of view as to certain details
While it is not my policy TO favor
the conduct by the government of
any business that an individual or
firm can do better, as a responsible
official l cannot recommend to Con-
gress a change without a clear-cut
program and adequate assurance that
the government will be better served
and local residents will not suffer
from the change. I shall be glad,
therefore, If you will supply me with
information on the following points:
81. Have the retail coal merchants
In the District adequate storage and
handling facilities to supply fuel to
the government departments at all
times, as well as to serve their pres
ent customers?
''2. Can the coal merchants supply
the government departments more
cheaply than can the government fuel
yard? -
"3. Are the coal merchants prepared
to submit responsible bids covering
the governments fuel requirements?
"a. In event that the retail mer-
chants do supply the governments
fuel requirements, thereby increasing
their volume of business and decreas-
ing the overhead charge per ton, how
much would this lower the price per
ton (a) to the government, and Obi to
local residents?
"5. In event that answers to the
above are favorable, at what margin
per ton. above mine cost and freight,
are the merchants prepared to sell
coal of the various grades in the Dis
trict?
"6 Assuming that the necessary
enabling legislation be obtained from
Congess to permit CONTRACTS for more
than one fiscal year, for what term
are the merchants prepared to con-
tract with appropriate bond to as
sure performance?
'If you possess any other data
which would be of value to me in
reaching a decision, I will be glad If
you will submit 1T to me-"
Question of Economy.
Secretary Works letter to the ma
tional organization of the retail coal
of the local coal dealers. follows this
recently expressed intention of going
into full investigation of the gov
ernment fuel yard.
The Secretary has for some time
been flooded with protests, by local
coal dealers against the government
fuel yard, which contended the in
stitution was an unwarranted inter-
ference with and competition in bus
mess. Certain government economists
have contended also the fuel yards
were not an economy but an expense
to the government.
Another angle Of attack against the
fuel yards, which resulted in Secre-
tary Works investigation was the
charge that in selling fuel to officers
of the Army and Navy, but not selling
to other government employees, the
government itself was working an
unfair discrimination. Defendants of
the fuel yard claim that it has fully
justified itself, as an economy mea-
sure.
Commission to Act.
The Federal Trade Commission was
preparing today to act on President
Coolidge's request that it investigate
and report on any alleged prof1teering
in coal.
How far the commission will be
able to go in its action to protect the
consumer against higher prices as
result of the coal peace settling the
strike, which 1T was admitted by Gov.
Pinchot of Pennsylvania would add
about so cents to the cost of produc-
tion, had not been determined today.
A meeting of the commission would be
held this afternoon or tomorrow, Ii
was learned, in order to canvass the
entire problem and map out q line Of
procedure.