Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-22
Coal Merchant Denies
Local PrOfteering
To the Editor IL The Star

To the Editor IL The Star:
In reference to an article appea ring
,, in the daily papers, stating that the
coal dealers OF this city are profiteer-
| ing and are the cause of the high
prices OF coal in this city, ] beg 10 call
attention to the following facts. in
order that the public might be given
| the truth instead OF being led to be-
lieve that we are sousers, whereas. on
the other hand. we are trying to per
form a duty that is hard one.
: In this article 1t is stated that soft
! coal originating in Pennsylvania. cost
ting S2.95 per ton, is being solo for
/ s14 and $3.50 per ton. In the f1rst
place the grade of bituminous coal
from Pennsylvania is of such auai-
! ity that ii Is not popular with the coal
burning public in Washington. the
most desired grades OF bituminous
Goals coming from Virginia and West
/ Virginia The price of this Virginia
coal is not s2.95 per ton. but n cents
per ron less. or s2.75 per ton.
All hituminous Goals are purcha sed
on the short-ton basis, or 1000 pounds.
and quotations to us are made on this
| basis, whereas we are compelled 10 sell
! all coal on the lons-ton basis, or 2.240
pounds. or IL per cent more than the
! net ton. Take. for instance. the quota
I ton ] received from a shipper under
1 date OF January II from LVnchburS
| Va, Of s2.75 per ton. plus the II per
! cent 10 make this price on The long
| ton basis, would be s3.68 per long ton
and 10 this price add the freight rate
Of S2.St per long ton. the price de
| livered to our wards in Washington
| would then be $50 per ton Of 2.240
| pounds For this coal we get 81 per
| long ton delivered to our customers, or
a gross profit OF sl.0s. on which we
are to maintain our business, paw help
and derive an income from our invest
| nent.
| There are grades Of bit luminous
Goals which have 10 be screened and
| PREF ared before delivery to the con
sunlers who desire this grade of coal.
! This coal costs liz sos to 81 80 per
/ hong ton. and which we sell for sl4 TO
| $3.50 per long ton. but car of this
-, coal will run nearly 33iz per cent
! slack. which is moi salea BILE only 2 z
price considera bly, less than the cos,
Of the original coaI 10 us. and tho
| preparation and delivery of this grade
"f coal takes from two To three time 8
| longer than ordinary soft coal de
hveries
Articles appearing in the daily pa
pers would convey the impression that
the coal dealers are taking advantage
OF the situation. Does the author. who
no uouDt mas more O. less ilndItldl III
terest in the Pennsylvania coal indus
try. realize that the dealers have TO
make their living on q less volume of
business and on coal that is sold on
| a starvation margin?
| know of one instance in this city
| where dealer made contract to de
liver to a certain building soft coal At
$500 per ton OF 2,n40 pounds. Toda Y
that dealer Is delivering this coal per
his contract price of $500 per ton. md
j know for fact that he is paying
$500 per ton for the coal whole sale,
thereby in delivering the coal not MAX.
Ing cent.
There is no profiteerinc in the coal
business in this city. II the railroads
are allowed to make gross ma rcin
OF $50 per ton for hauling coal. why
then is the retail dealer not allow ed
to make half a much?
g. HOWARD DCNNINGTON.