Show COAL DEALERS DEALERS' PROFITS SMALL OPERATORS RS PICK PICA PICKPOCKETS POCKETS OF CONSUMERS By E. E J. J David of the tho public indignation IN VIEW IN-VIEW that prevails at present concerning the high cost of coal to the consumers consumers consumers con- con sumers in Salt Lake the coal dealers dealers deal deal- ers ers declare that they are willing that their books should be examined to tor show that n n nb undue profit has be been made by them There has been no charge made that the dealers have reaped unfair profits i but it has been pointed out that the I cost of coat coal coato to the dealer as charged by bythe bythe 1 the producer is altogether too high and out of reason That declaration that the producers are waxing rich at atthe atthe atthe the expense of the public which is called upon to make sacrifices ces Is herewith herewith herewith here here- with reiterated Coal about twelve months ago was selling to the dealer at a ton a athe at atthe atthe the mine mouth Today the dealer is 8 compelled to pay 3 a ton and it is is said that some of ot the independent companies propose to charge an additional additional additional addi addi- 50 cents a ton The people cannot stand for another another another an an- other advance in the price of coal If It the coal operators again force the price up it will precipitate action by Governor Bamberger The governor has already stated that he will call a special session of the legI legislature lature for forthe the purpose of ot enacting legislation to protect the people against the coal barons Maybe the rising in the price of coal as intimated by some greedy operators would prove beneficial to the people at large Governor Bamberger realizing public public pub pub- lic lie opinion on the matter would be bound to live up to his promise and coal would then be made a public utility It would come under the jurIsdiction jurisdiction jurisdiction jur jur- of ot the tho state public utilities commission It is safe to say that if such a situation materializes that the coal operators will not be able to exact such hea heavy toll from the dealers dealers dealers deal deal- ers who of course make the consumers pay all charges in addition to providing providing providing provid provid- ing them with a revenue to run their respective businesses DEALERS' DEALERS PROFITS LIGHT How much does a coal dealer profit in a year in Salt Lake After a close Investigation the conviction is reached that any dealer who is making malting 8 per percent percent percent cent on his business investment is do doing doing doing do- do ing wonderfully well It It is believed it will be found that the average profit 01 of the dealer does not exceed 6 6 per percent percent cent pent a year The dealer Is certainly entitled to that return on his investment Take the Bamberger Coal company as an example The company buys its coal from the Utah Fuel company at the mine mouth at 3 a ton The Bamberger Bamber Bamber- ger Coal company must company must then pay a a. ton on foreign for delivery in Salt Lake In addition it must pay for I haulage at the rate of 1 a a ton the I remuneration to teamsters having re recently recently re- re reI I been advanced by 25 cents a ton This provides a total of a aa aa Ii a a ton tOil The dealer charges the consumer a ton for delivery of coal to his home making a profit of ot a ton or approximately 17 per cent Out of the the dealer has to pay overhead overhead over- over head bead expenses such as clerical help collectors and other office expenses In addition he has to pay rent for yards where coal is stored and in some instances instances in- in stances the rental amounts to more than thim a month By these figures it will be seen that the th the margin margIn left for the dealer to operate operate oper oper- ate upon at profit is rather small Coal was selling at a ton twelve twelvemonths twelvemonths twelvemonths months ago The rise of a dollar in inthe tho the year is explained by the producers raising the price to the dealer by 60 cents The dealer was then called upon to pay the teamsters an additional 25 cents a ton for delivery to the consumer consumer consumer con con- sumer making a total of 85 cents a aton aton aton ton and leaving 15 cents to take care of Increased cost of maintenance of the dealers dealer's business PRODUCTION COST The extra 15 cents gained by the dealer due to advancing costs certainly certain certain- ly has has' more Justification about it than the advance of 60 cents made by the producer As a matter of fact there was and is no justice in the producers raising the price Despite increased cost cost of ot equipment and increased cost of ot labor the fact stands stands out out most clearly that all advances d do not justify Jus jus- i the increase made by the pro pro- Governor Go Capper of Kansas after a close study of the coal situation situa situa- situation tion throughout the country recently declared that the cost to the producer cent tad had pot not of increased more than 20 20 per cen t Even assuming that the cost to the producer had increased 20 per cent is i it not reasonable to assume that the price formerly charged the he dealer was I more than sufficient D Does es any coal producer in Utah really contend that it costs him 2 to o mine a ton of coal and produce produce it at the mouth of the colliery col col- colI I li liery were prepared a few years I ago ago showing snowing that in no circumstance circumstance- Would it cost the tha producer more than Q 0 cents a ton to mine a ton of coal and produce it at the mine mouth for to the dealer Assuming on I Governor Cappers Capper's figures that the I cost has lIas advanced 20 per cent ent it means that production In total involves i in an expense an-expense n expense of 1 On this basis the I people could demand with Justice that I Ithe the cost of the coal to the dealer should not be more than This would provide a saving saYing of a ton to the consumer or in other words the peo people peo- peo Jle would woud be able to obtain coal delivered at ered ered at their homes at 52 a ton for which they now pay I The sooner the regulation of the price of coal is placed under the jurisdiction jurisdiction juris juris- diction of ot the public utilities commission commis commis- sion the better The coal dealers Interviewed in In- In teT on the subject state that they have no objection to E J 1 such a m move mO As a matter of fact tact they would welcome wel wel- 1 c come come me it GOVERNO'S PROMISE Governor Bamberger has declared that that there th re l i is a limit to how far I will 1 I allow things Ho to go In the opinion of 0 the writer the limit has been ben more than reached v With the passage o of the food bill Senator W W- W. W V. V Armstrong becomes fo food d controller of Utah One of his duties will be to control the production tion and supply of coal to the people An order by Senator Armstrong calling call call- calling ing upon the fhe coal companies to reduce the price of coal to the dealer who would cut would cut the price to o the consumer would be acclaimed with popularity Still even with Senator Armstrong holding the reins the governor could go right ahead and call a special session seso ses ses- o slon sion of the the should the coal 2 CI operators dare to advance the price of r fuel again Coal must eventually be made a II public utility A query has been made as to whether er the dealers charge a storage fee to consumers for coal held held in in their yards for them The dealers deny that they make any such charge and nd state that I in no no case Is a consumer asked to parmore pay par more than 75 a ton for lump coal ir irI irrespective irrespective ir- ir respective or not whether it is held In Inthe inthe the ilie yards I According to II 1 F. F Fernstrom general general general gen gen- eral manager of the Bamberger Bamberg r Coal L company householders in Salt Lake land tand and vicinity have at present about tons of coal stored in their cel cel- lars Some of ot it is being used at present present present pres pres- ent but quite a large amount of the total is being held for consumption next winter the people fearing that another another another an an- other fuel famine might prevail Mr Fernstrom also says that to the best of his belief there is not m more re than 2000 tons of coal in the yar yards s of ot the dealers of ot this city at present SUPPLY AND DEMAND How about when the winter arrives and there is a big demand for the coal will you ou be able to fill orders he was asked asked- aske He replied that that depended upon circumstances In the first place he pointed out that the yards yards' could of course only accommodate a certain quantity When the supply was exhausted exhausted exhausted ex ex- hausted by rush demands it was possible ble bie that there would be no more cars at the sidings with coal ready to un un- loa load d. d To a great extent exten he blamed the Denver Denver Denver Den Den- ver Rio Grande in former years for coal shortage conditions in Salt Lake Lakein Lakein in the winter He said that there had been an annual cr cry for fuel by the consumers and he thought that conditions conditions condi condi- would be relieved if consumers placed their orders several days In ad advance advance advance ad- ad vance of ot needing the fuel In addition he thought that there was a possibility that a coal shortage would not be acute so-acute so acute arute this year as a result of the promise of H H. U. U Mudge president of f the Denver Rio Grande railroad to supply all cars car needed to handle the output of the Utah mines and to make delivery The people however should understand understand understand under under- stand that in the winter a railroad is liable to be held up by a snowstorm making it impossible for cars to get through to destination on oh schedule time Then there is also the possibility possibility possibility of a a. washout but it is not be believed believed believed be- be that any would be so serious as the one which literally paralyzed the traffic of the Denver Rio Grande railroad about six weeks ago Mr 1 says that complaints have been made from year to year against the Denver Rio Grande for failure to supply sufficient cars to move an adequate supply of coal into Salt Lake He lie felt however that this year conditions would be remedied to a certain extent in that the Denver Rio Grande had filed its promise to supply sufficient cars with the public utilities utilities ties commission If it failed to live up to its promise the state body could or order order order or- or der immediate action In previous years the consumers had to bear with I the conditions but this year they can appeal with success to the state body I for relief With the Denver Rio Grande living living living liv liv- I ing up to its promise in providing all the cars needed the coal producers will gain greater revenue They can canwell canwell canwell well afford to reduce the cost of the coal at the mine mouth in such cir cir- cir cir- RATE REDUCTION SOUGHT Another point that should not be lost sight of Is the complaint of the city and other interests seeking a reduction in the freight rates on coal from the Castlegate district into Salt Lake Unless the producers raise the price of coal the dealers here say that the consumer will benefit by the reduction that the public public- utilities commission will order So cheer up there is going to be cheaper coal in Salt Lake and Utah generally Thirty-eight Thirty business firms of ot Salt Lake last night petitioned the city commission to appear before the public utilities commission and ask that not only should th the freight rates on coal be reduced but that the Denver Rio Grande railroad should provide adequate adequate adequate ade ade- quate transportation facilities to bring sufficient coal coal to the cit city and thereby prevent o it a fuel famine which more or less has prevailed here in previous previous previous pre pre- winters Th The petition of the thirty-eight thirty concerns concerns concerns con con- con con- cerns is covered in the petition of the city which was filed with the public utilities commission yesterday |