Factors in the High Retail Price of Coal

MOST of us householders in the East burn anthra-cite, so the problem that interests us most is the distribution and supply of the domestic sizes of anthracite. That, however, is only a small part of the coal problem and has its own peculiarities. Whether anthracite prices are high or low is largely a matter of relativity, depending on the size of the transaction, the available supply, and other things. As an isolated example which I hesitate to quote because it is not entirely representative, you may be interested to know that the Government fuel yard has been delivering to the Government buildings in the District of Columbia, white-ash stove coal at 16 c. a ton less during January, 1923, than during the same month of 1922. The reason is that the Government deals only with large companies who have been wise enough not to boost their prices and the small increase at the mine has been more than offset by the decrease in railroad rates. The total cost is $12.50 per ton, but I want to make it perfectly clear that it does not follow that this would be a just price for a retail dealer to charge the domestic consumer. For example, in the Government business there is no such thing as a bad debt, and certain other fixed or general charges are charged to other departments. The Bureau of Effi-ciency made an effort to determine what would be a. legitimate handling charge for a retail dealer, in Washington, and concluded that if the Government's cost of handling was $1.00, then $1.88 would be the corresponding fair charge to pay a retail dealer carrying the same volume of business, allowing for bad debts, complete depletion and depreciation of his equipment, and 10- per cent. profit. Assuming that this is the correct differential for Washington, it does not' follow that it would be equally just for Pittsburgh, New York, or elsewhere; nor does it by any means follow that it is a fair differential this year, because the dealer, after being unable to use his equipment in the summer months, now has to deliver an unusually large quantity of coal. I merely cite this instance to show that on the basis of primary cost of coal plus railway charges the retail price is not necessarily higher this-year than last.