Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-04
COAL AUDIT DEBATE
. SET FOR THURSDAY
Senate District Committee to
Study Report Submitted
by MCCarl.
The Senate District committee will

The Senate District committee will
meet at o'clock Thursday afternoon
to consider the voluminous report sub
mitted late yesterday by the controller
generals office showing the margins
between the cost and sale prices of
coal in Washington during the IL
months ending April 1, last, which
included the period Of the anthracite
strike.
Taking a group of dealers that in
cluded large and small volumes Of
business, the controller generals Of
fee calculated average figures for
the IL months on each kind OF fuel.
showing the difference between what
the dealer paid for the coal and what
he received for it, after allowing for
the various items of expense in get
ting it from the mine to the Gus
toner's door.
The report shows that for each
type Of fuel there was considerable
variation in the margins Of different
dealers between the purchase price
and the sale price. The accountants
who made the survey, however, did not
state any conclusions as to the rea-
sonableness of these margins. Of
ficials of the committee will be busy
during the next few days studying
the report, III preparation lOE Tie I@aIl-
mittee meeting Thursday.
Some Losses Shown.
In preparing the statement showing
the average margin on which each
dealer handled each kind Of fuel, the
accountants gave the sale price and
deducted from it the cost of the coal
at the mine, the freight rate to Wash
ington, the loss due to degradation,
the cost of handling and delivering
and an allowance for general admins
tration and officers salaries. The bal.
ance remaining was the margin, and
the report showed that on some types
of fuel certain dealers sustained a loss
on each ton.
For example, on run-of-mine soft
coal the figures obtained from different
dealers ranged from 80 cents per ton
net for one dealer to a loss of 81 cents
per ton for another dealer.
On briquettes the report shows a
range of from $3.07 net in one case to
35 cents net in another, with other
dealers having margins in between
those extremes.
On high volatile prepared soft coal
the range was from $1.S3 net to 20
cents net.
On low volatile prepared soft coal
the range was from $1.59 net. for one
dealer to a loss of cents per ton for
another dealer.
On coke one dealer showed a margin
of $291 per ton, and the others ranged
down to as low as AZ cents net.
Capper Makes No Comment.
The table contains one illustration Of
anthracite. using an average sale
price of S13.97 and a net margin of 10
cents after allowing for the various
items of expense.
The calculations were made by H.
A. A Smith Of the controller generals
office in accordance with an agree
ment entered into between the coal
merchants and the Senate committee,
whereby a group of dealers represent
ing each class of coal business would
furnish the information, with the un-
derstanding that names of concerns
would not be- used in the report. In
showing the variations in the mar
gins, the dealers who gave the infor
nation are referred TO as A, B and c.
Senator Capper, chairman of the
committee, said he has not had oppor-
tunity to analyze the report and,
therefore, was not prepared to com
ment on what more the committee
will do.