Evening Republican, Volume 23, Number 239, Rensselaer, Jasper County, 4 October 1920 — COAL JOBBERS ARE BLAMED [ARTICLE]

COAL JOBBERS ARE BLAMED

* : INDIANA FUEL COMMISSION AT WORTON COAL SIT- ; : J , UATION. * At the special session of the Indiana legislature a Food and Fuel law was enacted and if the legislature had dbhe nothing but put this bit of effective legislation upon the statute books it would have been a good investment for the tax payers of Indiana. Fortunately a new commission was not created but this Work was placed with the accounting' board of the state of which Jesse E.

Eschbach is chairman. Mr. Eschbach is at work on the coal problem and while this industry is in . serious. condition and grievous complaints are heard, on account of the lack of coal and the high prices prevailing, he will be able to get under the situation, find where the blame should be placed and also require the delivery of sufficient coal at reasonable prices. The following article is taken from the Indianapolis Star of October second: The alarming shortage of coal in Indiana overshadows price considerations, retail coal dealers testified today at the last of three price-fixing hearings before the Indiana food and fuel commission. Many of hhe smaller dealers declared they were forced to knuckle down to profiteering coal brokers and purchase coal at- exorbitant prices. They said they were unable to get shipment from the operators direct and were therefore forced to take coal offered by the jobbers because their customers “.needed coal regardless of the price.” R. C. Keene of R. C. Keene & Son, Frankfort, said he had been able to get only four cars of Indiana coal' in the last month and that he paid a jobber $7.25 a ton for one i and one-fourth inch lump at the mine in. order to get two of the cars. , “Who was that jobber?” Jesse E. Eschbach, chairman of the commission, asked. • Retailer Name* Broker, “He is located ir. the Traction Terminal building in Indianapolis,” Mr. Keene replieds - “I think the name of the concern is the Brader Coal Company. The Linton .Coal is very reasonable,” Mr. Keene continued. “They quote me a price of $4.25 a ton at the mine, but we don’t get very much coal d€jive^6d• ,, ■ ‘ s The last remark about not being able to get the coal delivered brought a ripple of laughter from the two score or more coal dealers at the ‘hearing. Nd. Brader Coal Company is listed and the com? mission expressed the opinion that Mr. Keene was confused on the name. When it was brought out that Linton fourth vein coal was offered for $4.25 at the mine, James W. Noel, counsel for the commission, exhibited a post card on which an Indianapolis jobber had quoted a dealer a price of $8.50 for Linton coal at the mine. J “This broket sitting in his office would be able to give you coal at 100 per cent profit,” Mr. Noel smiled. - The coal brought by this particular jobber, Mr. Keene said, was routed through Illinois when it was reconsigned to him, and the freight charges on it was $1.63 a ton, making the total cost delivered in Frankfort, SB.BB a ton. ’ > Boycotted Profiteers. M. F. Shaw, of Crawfordsville, declared he refused to buy coal from jobbers who asked trim as high as $8.50 a ton at the mine. As a result, he said, he was unable to get much coal, bat what little he obtained direct from the mine was purchased for $5 a ton. He read letters and telegrams he had sent to the operators urging them to give him coal, iln reply to these he received letters in which the operators advised him that there was a serious car shortage and that they would be glad to take care of him when they could. • “The operators raise the tion,” Mr. Eschbach interrupted, “that the Indiana dealers refused to purchase local coal in previous years and now that there M a shortage they are calling on the Hoosier mines for coal.” “I plead guilty, Mr. Shaw replied. “Prior to the .war we did ■not realize the value of Indiana coal. Conditions were different then, too. We could get Eastern coal for just a little more than Indiana coal and the retail trade demanded it. The Easto coal will store better than the Indiana coaL Another thing, the Indiana operators did not push their coal for domestic consumption as they were catering to the 'Steam coal trade. Now we do not seem to be able to make the Indiana operators belie that they have a permanent market . Retail Supply Exhausted. Indianapolis dealers, as well as dealers from other cities in the state, declared that they did not now have of in their

secretary of the ed that there would be a ’plentiful supply of coal in Indiana within sixty days. . He related that there are many factors working to keep down the supply in the state. Tihe order of the interstate commerce hand, C °the Indian* npemtow °have been contracting for their outputs «h are not affected by the order of.the interftete comup to Qotmal. he said bccattic the wtfMM, ,'Laa B-fr-As jy.» _*♦ 1 » n’w» 1.. ■ ■ VasS*®*'.*' ■' "'•* \ ‘ • r

I• z , -J '/..0 f •’■''■•* • »;Xj . for the most part by the railroads on which they are situated, be baid, and'the railroads have been given preference to deliveries on their own rights of way so that they can get the most rise out of their can. . Floaty in 30 Hays, Is Report. “If Indiana mines are given enough cars to operate four or fire «r s president of the Indianapolis Coad Company, said: “If Woodrow Wil™ had giren * Sy “Sod so? »e'S increases, as be did to the miners apd the railroad employes, the roads would not be crippled as they are and would be in better shape 1 .."itduhy wr. cost Mr« • ueorge . Suomi vvea obl bhmw

of the company showing that, excluding the items of depreciation, disin tigration and bad accounts, which he estimated would total 15 cents a ton, the actual cost pf handling coal for his company was $2.41 a ton during Jahuary, Fel> rttary and March of this year, $2.92 during the next three months, and $2.76 in July and August. These figures do not take into considersm««ta ed by representative coal dealers in other cities were submitted as evidence by Mr. George. These m«gins, including profit, were, Waabington, $2.75 a ton; New York (B.™ »8.25; CHgp. <3.50; Toledo, $8.25; that tons of coal could not be delivered in Indiana at a cost less than ' : ■■ -

Consider* Jobber* Necessary. In response to questions by Mr. Eschbach, Mr. George said that his company purchased most of their coal from the operators, but some of it was -bought from jobbers, “whom* he regarded as a necessary link in the chain of distribution.” G. -D. Rider of Goodland, Newton county, said he couldn't find any operators who had coal to sell. He related that some time ago he was able to get two ears at 15.50 a ton, but that his competitor had to pay $8 a ton to a jobber. The competitor sold the eoal for 111 a ton* he said. ‘'Well, I had to sell at the same price that my competitor did or I wouldn't have any coal to sell to my Customers,” he replied. “I made some money on that coal.” Frederick E. Matko" * and Clar-

ence W. Nichols, attorneys, repreresented the 750 coal dealers of the Indiana Association of Retail Coal merchants. They insisted that the commission establish a fixed margin of profit for dealers, in addition to the cost of handling. If this is not followed, they said, the commission would have to fix prices high enough to permit dealers having heavy operating costs to exist ' It had been previously announced that one Indianapolis dealer had an the net profit xrf cents ,a ton fehafged by Indianapolis dealers, it was said. The average handling costs of fifteen Indianapolis dealers, including profit, was |3.01 a ton. V x, ' - • \; Sunday ngiht was the Solemn close of Forty Hours Devotion.